In 2018, the PZU Group collected gross premiums of PLN 23,470 million or 2.7% more than in 2017.
The PZU Group posted the following results in the various segments:
Insurance segments (PLN millions), local GAAP
|Gross written premium (external)|
|Total non-life insurance – Poland (external gross written premium)||13.384||12.702||10.878||9.074||8.367|
|Mass insurance – Poland||10.325||10.029||8.742||7.309||6.56|
|Motor own damage||2.524||2.406||2.147||1.727||1.579|
|Corporate insurance – Poland||3.059||2.673||2.136||1.765||1.807|
|Motor own damage||878||848||712||510||461|
|Total life insurance – Poland||8.237||8.519||7.949||7.923||7.808|
|Group and individually continued insurance – Poland||6.891||6.855||6.775||6.689||6.539|
|Individual insurance – Poland||1.346||1.664||1.174||1.234||1.269|
|Total non-life insurance – Ukraine and Baltic States||1.729||1.527||1.305||1.288||632|
|Ukraine non-life insurance||202||181||173||138||133|
|Baltic States non-life insurance||1.527||1.346||1.132||1.15||499|
|Total life insurance – Ukraine and Baltic States||120||100||88||74||78|
|Ukraine life insurance||55||42||37||31||41|
|Baltic States life insurance||65||58||51||43||37|
Structure of gross written premium at PZU Group (%)
Net revenues from commissions and fees
Net revenues from commissions and fees in 2018 were PLN 2,620 million, or were PLN 858 million higher than in the previous year, mainly caused by the commencement of Pekao’s consolidation.
They included mainly:
Net investment result and interest expenses
In 2018, the net investment result2 including interest expenses was PLN 8,584 million compared to PLN 7,121 million in 2017. This higher result was caused predominantly by the commencement of Pekao’s consolidation in June 2017. After the contribution of Pekao and Alior Bank is netted out, the net investment result after factoring in interest expenses in 2018 was PLN 904 million and was PLN 951 million lower than in the previous year.
The following factors affected the income:
In addition, the results on the portfolio of assets covering investment products were down PLN 528 million y/y, even though this is neutral to the PZU Group’s overall net result because they are offset by the lower level of net insurance claims and benefits.
In 2018, the value of the PZU Group’s investment portfolio3, excluding the impact of banking activity, was PLN 50,270 million compared to PLN 46,164 million as at the end of 2017.
The overall growth of the investment portfolio was related to the higher premiums inflow due to business growth and the rising value of the investments.
The increase in the balance of reverse repo transactions and term deposits with credit institutions entered into on the interbank market aimed to enhance the return on investment activity. The increase in the balance of these transactions was partly offset by the decrease in the balance of funds presented in receivables presented outside the investment portfolio.
The Group runs its investment operations in compliance with statutory requirements while maintaining appropriate levels of safety, liquidity and profitability, therefore debt treasury securities accounted for over 60% of the investment portfolio.
Structure of the investment portfolio net of the impact of banking activity* (in %)
* Interest rate, foreign exchange and equity price derivatives duly presented in the categories of debt market instruments – treasuries, money market instruments and listed and unlisted equity instruments.
Result on other operating income and expenses
In 2018, the balance of other operating income and expenses was negative and stood at PLN 2,165 million, compared to the balance in 2017, which was also negative at a level of PLN 1,580 million. The following contributed to this result:
2 Net investment result includes: net investment income, net result on realization of financial instruments and investments, movement in allowances for expected credit losses and impairment losses on financial instruments and net movement in fair value of assets and liabilities measured at fair value.
3 The investment portfolio contains investment financial assets (including investment products), investment properties (including the part presented in the category of assets held for sale) financial derivatives along with the negative valuation of derivatives and liabilities arising from repurchase transactions presented in financial liabilities.