On 3 October 2016 PZU Supervisory Board adopted a resolution (Current Report 61/2016 of 4 October 2016) to approve the PZU Group’s Capital and Dividend Policy for 2016- 2020 (“Policy”). No changes were made in the Policy in 2018.
The introduction of this Policy stemmed from the implementation, as of 1 January 2016, of Directive 2009/138/ EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II), as amended, the Insurance and Reinsurance Activity Act of 11 September 2015 and the expiration of the PZU Group’s Capital and Dividend Policy for 2013-2015 updated in May 2014.
In accordance with the Policy, the PZU Group endeavors to do the following:
The capital management policy rests on the following principles:
As at the end of Q3 2018, the estimated solvency ratio (calculated according to the standard Solvency II equation) was 245% and remained above the average solvency ratio for European insurance groups.
Solvency II ratio for PZU against European insurers
Source: Reports of companies. Q3 2018 data for Aegon, Ageas, Allianz, ASR, AXA, CNP, Generali, Gjensidige, Munich Re, NN, RSA, Sampo, Scor Topdanmark and Tryg; Q2 2018 for the others.
In Bank Pekao and Alior Bank, the capital adequacy ratio and the Tier 1 ratio were computed on the basis of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (CRR Regulation) and also the various types of risk identified in the Internal Capital Adequacy Assessment Process (ICAAP).
|Capital adequacy ratio||Q3 2018||2017|
|Pekao Group – total capital adequacy ratio||17.40%||17.10%|
|Alior Bank Group – total capital adequacy ratio||15.90%||15.20%|