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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.

Pursuit of key projects and initiatives

Annual Report 2018 > STRATEGY > Pursuit of key projects and initiatives
Reference areas Ref. areas
Best Pratices in PZU

Actions performed in 2018

Key areas Recap of actions and achievements in 2018
  1. Maintaining the PZU Group’s leadership position on the non-life insurance market.
    According to the end of Q3 2018 data published by the Polish Financial Supervision Authority, PZU’s market share (direct business) was 34.8%.
  2. Link4’s non-life insurance market share was 2.8% at the end of Q3 2018 (down 0.1 p.p. y/y; direct business).
  3. Strengthening its leading position in periodic premium life insurance. Market share was 46.0% in the first three quarters of 2018 (45.8% last year). PZU Życie’s life insurance market share at the end of Q3 2018 was 37.8% (up 3.0 p.p. y/y).
  4. Consolidation of market leadership in Lithuania and Latvia. The Lithuanian company’s non-life insurance market share was 30.5%, while the market share on the Latvian market at the end of Q3 2018 held steady at 27.8%. The Lithuanian life insurance market share was 6.2% (up 0.3 p.p.). The PZU Group’s non-life insurance market share in Estonia in 2018 was 16.0%, posting growth of 0.4 p.p. The Ukrainian non-life company posted market share expansion (3.4%) of 0.1 p.p. in the first three quarters of 2018 compared to the corresponding period of the previous year, while the life company’s market share edged up by 0.6 p.p. to 11.0%.
  5. Development of TUW PZUW’s operations confirmed by its market share of 1.4% at the end of Q3 2018 (up 0.4 p.p. y/y; direct activity).
  6. Membership in Lloyd’s and close collaboration with the Argenta Syndicate. PZU received a prestigious certificate entitled „Member of Lloyd’s”.
  7. Enlargement of the scope of work to utilize telematics in the PZU Group. Following the solutions deployed in Link4, work on the PZU GO project was launched with the purpose of enhancing drivers’ safety.
  8. Commencement of work for PZU to market innovative solutions pertaining to tariff setting and sales support.
  9. Commencing the implementation of advanced consulting services in risk management by the PZU Lab.
  10. PZU won the Polish Radio’s Economic Prize in the “National Treasure” category awarded to businesses that stood out in the past year on the market place and contributed to promoting Poland on the international arena.
  11. PZU received a prestigious award as a Trustworthy Brand in 2017 conferred by the “My Company Polska” monthly for products and services that feature a special degree of trust according to commercial undertakings.
  1. TFI PZU is in third place on the market in terms of net assets under management. At the end of 2018, TFI PZU’s assets under management were PLN 19.8 billion, accounting for 7.7% of the assets in domestic mutual fund companies (TFIs). Pekao TFI is in fourth place on the market in terms of net assets under management. At the end of 2018, Pekao TFI’s assets under management were PLN 19.4 billion, accounting for 7.6% of the assets in domestic mutual fund companies (TFIs).
  2. The slight decline in third party assets under management from PLN 7.3 billion at the end of 2017 to PLN 7.1 billion at the end of 2018 was primarily due to the soft market. The assets of TFI PZU’s third party clients represented 4.4% of the TFI market’s assets at the end of 2018 (net of privately held assets).
  3. TFI PZU is the market leader in the employee pension plan segment among domestic mutual fund companies. At the end of 2018 TFI PZU had PLN 5.3 billion in assets under management (EPP, GPP, PPO, ZPI).
  4. The net asset value of OFE PZU Złota Jesień at the end of 2018 was PLN 22.1 billion (including the assets acquired from OFE PEKAO), which translated into 3rd place on the market with a share of 14.1%.
  5. PTE PZU’s net profit at the end of 2018 was PLN 70.8 million.
  1. At the end of 2018, PZU Zdrowie’s revenues were PLN 575.3 million, signifying growth of 26.3% from the previous year.
  2. 20.1% growth in gross written premium in group health insurance in comparison with 2017.
  3. PZU Zdrowie’s acquisition of equity stakes in Centrum Św. Łukasza and Elvita’s acquisition of equity stakes in Multimed in 2018. Additionally, PZU Zdrowie acquired equity stakes in Alergo-Med in January 2019.
  4. Further refining of the tool to manage the proprietary medical center network and the centers cooperating with PZU Zdrowie and manage client traffic on the medical hotline.
  5. Performance of work on implementing a functionality enabling online communication with Medical Hotline consultants to book medical services with an extensive network of medical centers.
  6. Work to implement a portal to handle occupational medicine for employers and a selfservice portal for PZU’s patients (mojePZU portal).
  1. The value of banking assets in the PZU Group’s possession rose to PLN 264 billion at the end of 2018.
  2. The banking segment’s contribution to the PZU Group’s operating result was PLN 4,036 million at the end of 2018.
  3. Work was continued to achieve income and cost synergies in the cooperation between PZU and the banks in its group (Pekao, Alior Bank).
Cost effectiveness culture
  1. Increase of administrative expenses in the underwriting segments in Poland by PLN 5 m at the end of 2018, i.e. 0.4% y/y.
  2. The administrative expense ratio in PZU and PZU Życie improved 0.2 p.p. at the end of 2018 to 6.6%.
  3. The administrative expense ratio in the international companies improved by 0.6 p.p. At the end of 2018 this ratio was 9.2%.

Execution of the PZU Group’s CSR strategy

2018 was the first year of executing the PZU Group’s CSR strategy that defined the ambitions PZU and PZU Życie have for corporate social responsibility. Within the bounds of these assumptions the areas of corporate social responsibility, operating directions and management approach to the initiatives being undertaken were defined.

Purpose Execution 2018 Level in 2020
Building its CSR position in the financial industry - Membership in the Respect Index of listed companies observing corporate social responsibility Membership in the index below the average for the industry Membership in the index at a minimum average level for the industry
PZU’s further membership in the basket of companies pursuing corporate social responsibility included under the RESPECT Index was affirmed on 12 December 2018 (the study covered the company’s operations in 2017). Its result was lower than the average result in the financial industry. Among other things, this was the result of greater pressure on reporting at the Group level, i.e. including Bank Pekao and Alior Bank. Efforts will be taken in 2019 to streamline communication, thereby making it possible to report the required data to a broader extent.
Clients NPS for retail clients in insurance versus the competition >competition >competition
Indicator concerning the timeliness of examining complaints 97% up to 28 days 95% up to 28 days
Clients were once again inclined to recommend PZU to a greater extent in 2018 in comparison to the competition. Its NPS (Net Promoter Score) was 7.3 p.p. higher than the competition’s. This score is to a large extent the outcome of a broad array of client satisfaction and loyalty studies, enabling us to satisfy client needs effectively and identify the organization’s strengths and areas in need of modification and improvement.
Employees Employee commitment index 40% 55%
% of women in managerial positions 53.1% at least 50%
The commitment index rose 5 p.p. in 2018 to 40%. The participation ratio was 73% (52% in 2017).
Environment Implementation of the Group’s “Green PZU” standard The standard and guidelines for execution were devised Fully implemented (100%)
In November 2018 the “PZU Group Standard - Green PZU” was enacted with general guidelins for planned implementation in the environment. They should be completed by the end of 2020.
Risk management Risk assessment framework score (BION) for PZU and PZU Życie Good level* Good level
Social activities Financial commitment to social activity PLN 86.8 million > PLN 50 million per annum
Suppliers Percentage of suppliers adhering to the “Code of CSR Best Practices for PZU’s Suppliers” The “Code of CSR Best Practices for PZU’s Suppliers” was prepared 90% of contracts contain an obligation to adhere to the “Code of CSR Best Practices for PZU’s Suppliers”
Preparations were underway in 2018 to implement a new procurement platform that, according to the assumptions underpinning the CSR strategy, will incorporate the necessity of affirming the obligation to abide by the “Code of CSR Best Practices.

* As at 2017 (last available data)

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