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Interactive navigation is a tool that goes beyond the standard navigation of the integrated content (available in the report drop-down bar). New approach allowed to navigate in the two additional business dimensions of the PZU Group, i.e .:
- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
The above-mentioned areas were additionally supplemented with related GRI indicators, within each selected issue.


Annual Report 2018 > Highlights

Financial Results

Assets PLN 328,554 million (+3,5% y/y)

Equity attributable to the shareholders of the parent company PLN 14,925 million (+2.2% y/y)

Net profit PLN 5,368 million (+28.3% y/y)

Net profit attributable to the shareholders of the parent company PLN 3,213 million (+11.0% y/y)

Gross written premium PLN 23,470 million (+2.7% y/y)

Net earned premium PLN 22,350 million (+4.7% y/y)

Net insurance claims and benefits PLN 14,563 million (-2.5% y/y)

Low risk profile investment portfolio – over 60% of treasury debt securities

ROE attributable to the parent company 22.1% (+1,1 p.p. y/y)

COR 87.1% (-2.5 p.p y/y)

Operating profit margin in group and individually continued life insurance 22.1% (+1,5 p.p. y/y)


100% - aided PZU brand recognition

16 million PZU clients in Poland, 5 million Bank Pekao clients, 4 million Alior Bank clients

411 - number of PZU branches, including 189 branches in small towns

9.1 thousand tied agents and agencies in the PZU Group - the biggest agency network among Polish insurers

>2,100 number of partner outlets cooperating with the PZU Group at the end of 2018, >60 number of proprietary PZU Zdrowie medical centers

825 - number of Bank Pekao branches at the end of 2018, 1,708 number of own ATMs

861 - proprietary and partner outlets of Alior Bank at the end of 2018

PLN 1 million for drivers driving safely in the LINK4 “Kasa Wraca” [Cash Back] telematic program in 2018

6.7 thousand - number of employees of Bank Pekao branches who were trained and obtained KNF licenses to sell PZU insurance in 2018

over 300 innovative ideas submitted in 4 competitions using the Ideas Generator

83.5% of the PZU Group’s clients are satisfied with the claims and benefits handling proces (satisfaction survey on a sample of 20 thousand clients conducted in 2018)

34.8% - PZU Group’s share in the non-life insurance market (direct business) at the end of Q3 2018, including LINK4’s share of 2.8%

37.3% - PZU Group’s share in the motor insurance market (direct business) at the end of Q3 2018

46.0% - PZU Życie’s share in periodic gross written premium at the end of Q3 2018

PLN 19.8 billion - net assets managed by TFI PZU, representing a 7.7% market share at the end of 2018

14.1% - share of OFE PZU Złota Jesień in the total asset value of the open-end pension funds operating in Poland at the end of 2018

30.5% - share of Lietuvos Draudimas in the Lithuanian non-life insurance market at the end of 2018

27.8% - share of AAS Balta in the Latvian non-life insurance market at the end of Q3 2018

16.0% - share of the Lietuvos Draudimas branch in the Estonian non-life insurance market at the end of 2018

3.4% - share of PZU Ukraine in the Ukrainian nonlife insurance market at the end of Q3 2018, 11.0% - the share of PZU Ukraine Life in the Ukrainian life insurance market

2nd and 7th - market position of Bank Pekao and Alior Bank, respectively, in terms of accumulated assets at the end of Q3 2018

3rd - PZU Group’s market position in terms of revenues in the health area at the end of 2018


Poland’s GDP growth in 2018 accelerated to 5.1% y/y due to the high rate of growth in household consumption

The registered unemployment rate in Poland in December 2018 fell to 5.8% compared to 6.6% in December 2017

The average monthly salary in Polish economy in 2018 grew by 7.0% compared to a 5.7% increase in 2017

In 2018, the consumer price index (CPI) in Poland rose 1.6% in annual average terms, compared to 2.0% in 2017

No interest rate changes by the Monetary Policy Board in 2018, the reference interest rate has remained flat at 1.5% since 2015

Insurance penetration rate in Poland 1.6% below the European average (7.5% in 2017)

In 2017, the statistical Pole spent EUR 380 on insurance, or more than 5 times less than the European average (EUR 2,030)

65% - share of bank loans in the Polish banking system in relation to the GDP in 2017, while the European average is 126%

Increase in GDP of Baltic states at the end of Q3 2018 on an annual basis: Latvia by 5.3%, Estonia by 4.2%, Lithuania by 2.9% on an annual basis

Deposits are the most popular form of accumulating financial assets in Poland - on an annual basis, 84.9% of all households hold them

Ukraine’s GDP growth in Q3 2018 rose 2.8% on an annual basis

Strategy and CSR

Generate an ROE at the target level in the strategy 22.1%

Utilize robotics to enhance the quality of claims handling

Launch an integrated CRM platform – to provide rapid access to information pertaining to products and services

Optimize prices in real time - Tariff-setting 3.0

Launch the inPZU innovative internet platform to offer units in passive funds

Raise the volume of sales and cut costs through PZU’s cooperation with the Group’s banks

Launch the PZU Data Lab - center for innovation based on data and artificial intelligence

Ramp up PZU Zdrowie’s size and profitability by tapping into technology and the high quality and accessibility of services

Deploy a telematic solution to rescue drivers’ lives – PZU GO

Expand the range and reach new target client groups with a simple and transparent offer

Devise and accept the PZU Group’s environmental standard under the name of “Green PZU”

Shares and bonds

The dividend yield for PZU’s stock was 5.9%
The dividend per share paid in 2018 was PLN 2.50

The P/E ratio (price / earnings) for PZU’s stock at the end of 2018 was 11.8x

P/BV (price / book value) 2.5x

Average trading value of PZU’s stock per session was PLN 69.6 million while the average number of trades per session was 3,751

The percentage of foreign investors in PZU’s shareholder structure at the end of 2018 was 35.0% (PLN 13.3 billion) including the percentage held by North American investors 13.2% (PLN 5.0 billion)

The dividend yield for Pekao’s stock was 6.1%
The dividend per share paid in 2018 was PLN 7.90

The number of conferences for institutional investors 14 foreign, 6 local, 2 non-deal roadshows in New York City, Boston, Chicago and Tokyo

Number of recommendations issued for PZU shares in 2018: 16
Highest target price at the end of December 2018: PLN 54.0
Average target price at the end of December 2018: PLN 48.9

Percentage of PZU held by openend pension funds (OFE) was 17.4% and by TFIs 4.9%

Financial strength rating and credit rating for PZU and PZU Życie awarded by S&P Global Ratings A- (stable)

PZU’s market value at the end of 2018 was PLN 37.9 billion Pekao PLN 28.6 billion, Alior Bank PLN 6.9 billion

The percentage of retail investors in PZU’s shareholder structure at the end of 2018 was 7.2% (PLN 2.7 billion)

Corporate Governance

3 Supervisory Board committees: audit committee, nomination and compensation committee, strategy committee

22% of PZU’s Supervisory Board members are women

30% of the PZU and PZU Życie Management Board members are women

PZU has been a signor of the Charter of Diversity since 2013

863,523,000 common shares with a par value of PLN 0.10 each make up PZU’s share capital

Long-term and stable shareholder – the State Treasury holds a 34.19% equity stake in PZU

Application of all recommendations and principles expressed in DPSN2016, except for the electronic shareholder meeting recommendation

The PZU Group Best Practices Code is a collection of ethical standards and standards of conduct to be followed by all PZU Group employees

8 Audit Committee meetings in 2018

Application, in daily operations, of the Best Insurance Practices comprising principles that should be followed by insurance sector companies as institutions of social trust

Adoption and application of Corporate Governance Rules for Regulated Institutions in accordance with the declaration of 2015

Risk and ethics

Risk management prevents the acceptance of risk at a level that could pose a threat to the PZU Group’s financial stability

Risk management proces stages: identification, measurement and assessment, monitoring and control, and management activities

The risk management structure in the PZU Group comprises 4 decision-making levels: (i) Supervisory Board, (ii) Management Board, (iii) Committees, (iv) three lines of defense as part of operations

Key risks in the PZU Group: actuarial, market, credit, concentration, liquidity, operational, model and compliance

The process of determining the risk appetite and risk limits for each risk category consistent with the Group’s proces implemented in entities in the PZU Group

Supervision over risk management systems in the banking sector entities (Alior and Pekao) is exercised by the Supervisory Boards of these banks, to which PZU designates its representatives

The risk appetite determined at least once a year in Pekao and Alior (after consultations with the parent company) ensures alignment of the banks’ activities with the PZU Group’s strategic plans and business objectives

Reinsurance providing security against negative impact of catastrophic events on the results of the PZU Group’s insurance activity

As at the end of Q3 2018, the Solvency II ratio 245% above the average ratio reported by insurance groups in Europe

The Group’s capital management (including excess capital) is conducted at the level of the PZU Group as the parent company

PZU’s reinsurance partners with high S&P ratings (AA, A)