People with passion
Introduction
CEO and the chairman introduce to You the most important achievements of the year. By reading those letters you will find out, what was the main achievement. Whatever on those statements will make you interested, for sure you will find it further on this website.
Dear Shareholders,
On behalf of the Management Boards of the PZU Group companies, I hereby convey to you our activity report for 2017.
2017 was an exceptionally intensive period for the financial markets. Investors focused their attention on central banks which kept applying an accommodative monetary policy in an environment of weak inflation. In connection with moderate geopolitical risk, this contributed to growth in all asset classes on global markets.
Dear Investors,
2017 was a period of ambitious projects carried out by the PZU Group, whose powerful influence as a national champion is taking on greater significance. The dynamic growth in the Group’s results posted in 2017 generates shareholders’ earnings and also contributes to the growth of other branches of the polish economy such as finance, trade, car repair, real estate and logistics.
Read morePZU Group
Check out this interactive map!
See in which markets we are present in Europe.
We are leaders not only in Poland!
Poland
Estonia
Lithuania
Latvia
Ukraine
Value Creation Model
Every integrated report should have a Value Creation Model.
Reading our VCM will help you understand how PZU creates sustainable values.
for
Stakeholders
We deliver an unparalleled offer
- Potential of the largest financial group in Central and Eastern Europe
- Understandable products suited to client needs and ensuring their financial security
- Extensive and multiple-channel distribution network
- Ecosystem of strategic partnerships
- Quick and efficient service, individual approach to clients
We build long-lastin relations
- Long-term partnership
- Comprehensive offer based on client knowledge and their real needs
- Unparalleled risk management advice for clients
We mitigate risk
- Managing the level of financial, operational and regulatory security
- Protect the sustainable grouth of PZU Group's value
- Protect the PZU Group's value and reputation
- Ensure thet the highest standards of conduct are observed in all operating areas
We manage our balance sheet responsibly
- Effective asset and liability allocation
- Adequacy of technical provisions
- Procuring liquidity
- Procuring capital security
Health
Health care - offering health insurance and medical care services, prophylaxis, prevention, promoting a healthy lifestyle
Investments
Financial security protection - growing savings, capital accumulation programs
Banking
Conducting banking activities, including accepting deposits, credits and loans, running bank accounts, handling cash settlements and rendering payment services
Mobile solutions
Accessible products and services to clients whenever and wherever they want them
Big data
Access to enormous data files, the ability to analyze and utilize them with lightning speed
Artificial intelligence
Underwriting and tariff-setting methods, marketing and prevention simplification of processes
Insurance
Protection against the effects of emergencies - risk valuation, premium calculation and investment, payment of claims
Capital
Financial
Shareholder funds, equity, third party capital
- PLN 317,405 million - consolidated assets
- PLN 37,601 million - group equity
- PLN 5,319 million - subordinated bonds
Human
Employees, agents and intermediaries, their competences, knowledge, skills, values and attitudes
- 41,391 group employees
- 10,521 agents in insurance companies
Organizational
Processes, procedures, mechanisms and structures as well as IT infrastructure and systems facilitating the group’s efficient operation
- Corporate governance in the group
- Best practices
- Shared group policies
- Business Continuity Plans (BCP)
Intellectual
Investments in new solutions and innovations facilitating development as well as organizational knowledge, experience and technologies used
- PZU, Alior Bank Innovation Centers
- Investments in startups in the financial and insurance industry
- Know-how in insurance, banking, investments and health care
- Own experienced IT teams
- 71.5% of employees hold a university degree
- Extensive databases
- Advanced risk management systems
Social (Brand)
Reputation, relationships and cooperation with the following clients, communities and other stakeholders
- PZU Group’s 200 years of history
- PZU’s brand value is PLN 1,981.1 million (in Rzeczpospolita’s brand ranking)
- PZU’s top brand recognition among insurers in Poland (PZU has 88% unaided recognition, 100% aided brand recognition)
- Clients Ombudsman and Client Council in PZU
Natural
Natural renewable and non-renewable resources used in operations (consumption):
- 129,168.2 MWh - electricity
- 5,296.8 tons of fuel (petrol, diesel)
- 648,756.4 GJ - heat
- Water
Business model
We deliver an unparalleled offer
- Potential of the largest financial group in Central and Eastern Europe
- Understandable products suited to client needs and ensuring their financial security
- Extensive and multiple-channel distribution network
- Ecosystem of strategic partnerships
- Quick and efficient service, individual approach to clients
We build long-lastin relations
- Long-term partnership
- Comprehensive offer based on client knowledge and their real needs
- Unparalleled risk management advice for clients
We mitigate risk
- Managing the level of financial, operational and regulatory security
- Protect the sustainable grouth of PZU Group's value
- Protect the PZU Group's value and reputation
- Ensure thet the highest standards of conduct are observed in all operating areas
We manage our balance sheet responsibly
- Effective asset and liability allocation
- Adequacy of technical provisions
- Procuring liquidity
- Procuring capital security
Health
Health care - offering health insurance and medical care services, prophylaxis, prevention, promoting a healthy lifestyle
Investments
Financial security protection - growing savings, capital accumulation programs
Banking
Conducting banking activities, including accepting deposits, credits and loans, running bank accounts, handling cash settlements and rendering payment services
Mobile solutions
Accessible products and services to clients whenever and wherever they want them
Big data
Access to enormous data files, the ability to analyze and utilize them with lightning speed
Artificial intelligence
Underwriting and tariff-setting methods, marketing and prevention simplification of processes
Insurance
Protection against the effects of emergencies - risk valuation, premium calculation and investment, payment of claims
Value for Stakeholders
Investors and shareholders
- 21.1% return on equity (ROE) for shareholders of the parent company
- Total shareholder return (TSR) in 2017 - 31.2% for PZU’s shareholders; 9.8% for Pekao’s shareholders; increase in Alior Bank’s share price by 47% in 2017
- High level of safety - PZU’s Solvency II ratio at 237% (at the end of 9M 2017)
- High standards of Corporate Governance - membership in the RESPECT Index (PZU since 2012, Pekao since 2016), adherence to the Best Practices of Companies Listed on the Warsaw Stock Exchange
- A- / stable - rating awarded to PZU by S&P Global Ratings - this is one of the highest possible ratings for a Polish company to receive
Clients
- PLN 13,019 million in paid claims and benefits
- PLN 169,457 million of loan receivables from clients
- High quality of products and services - client loyalty ratio (NPS) higher than for the competition (for PZU)
- Awards for the quality of service: Institution of the Year in 2017 for service quality in branches and remote channels for PZU, Client’s Golden Laurel for LINK4, Best trade finance service provider in Poland for Pekao
- Countering exclusion - accessibility to products and services for clients wherever and whenever they want (ongoing process of dismantling architectural obstacles, service available in sign language, on-line accessibility)
Employees and business partners
- Competitive and motivational compensation system and broad scope of non-payroll-related perks (benefits)
- Attractive place of work offering a friendly environment and atmosphere and development opportunities - 17 hours of training during the year per employee
- Respect for diversity - 57.5% of managerial posts held by women
- Signor of the Charter of Diversity (PZU)
- Sales training and support programs
- Elite Agent Club and Elite Advisory Group
- Awards and distinctions in HR (among others for PZU: Top Quality HR, Top Quality Internships and Apprenticeships, LINK4: Best quality employer, Human capital investor, Pekao: Top Employer 2017)
Local communities and suppliers
- 10,807 hours spent doing volunteer work by group employees
- PLN 74,441 thousand donated for social purposes (among others to institutions, hospitals, cities), of which PLN 12,000 thousand to the PZU Foundation
- Implementation of educational and social programs promoting health, safety, social aid, culture and protection of cultural heritage
- Promoting a healthy lifestyle
- Prevention programs
- No overdue liabilities, 97% of invoices with a payment deadline of up to 30 days (PZU)
Public administration and non-governmental organizations
- PLN 1,353 million of current income tax paid on the PZU Group’s consolidated earnings in 2017
- No penalties for violating environmental protection regulations (PZU, Alior)
- Sharing expert knowledge, cooperation in debates and public conferences
- Activities to benefit the development of business, science and new technology
- Legislative cooperation with the Polish Insurance Association (PZU)
Record-breaking results
On the charts below you can observe a confirmation of CEO and Chairman statements, indicating a record-breaking results.
Look how successful year it was, how much we have achieved in comparison to last year!
You can also read comments by our CFO and CEO of PZU Życie.
Financial performance
Share performance
Sustainable growth
Business performance
Financial performance
Share performance
Sustainable growth
Business performance
For the second year in a row the PZU Group has posted above average, double digit growth (+13.0%) in gross written premium. Simultaneously, the number of motor TPL policies in force has edged up by 0.2 million to 9.1 million. Our investment result made a positive contribution to the Group’s result; it shot up 52.4% to PLN 1,855 billion (net of banking activity), stemming from the significant improvement in equity portfolios and securing high margin corporate exposures...
In line with our strategic targets, the growth in gross written premium volume was achieved while applying rigorous cost discipline (the administrative expense ratio of insurance segments in Poland fell 1.1 p.p. yoy to 7.0%) and showing care about the quality of the risks acquired for the portfolio. The COR ratio declined 5.6 p.p. yoy to 89.3%. As a result, the Group’s consolidated result shot up 78.3% yoy to PLN 4.2 billion. Such robust profitability on a sharply rising portfolio serves as confirmation of our high level of operational efficiency and the enhanced effectiveness of our management structures when it comes to leveraging the magnitude of our business.
Read more
Health is one of the PZU Group’s fastest growing lines of business. In just 2017 revenue climbed more than 25% to PLN 456 million, with our client numbers exceeding 1.5 million. Our EBITDA margin improved by 1 p.p. to 8.2%.
We take an optimistic view when it comes to generating PLN 1 billion in revenues in the health business during the execution of the #newPZU strategy by tapping into the full potential the PZU Group’s client base offers, by developing health insurance products and by activating our sales network.
In the long-run we will build our competitive advantage by offering modern patient service processes while onboarding the best practices on the market, innovative technological and medical solutions and high standards of service quality, including VIP care. The rollout of our proprietary medical center network will also be continued by pursuing greenfield and M&A opportunities
Read moreOur commitment
We want to share with you our Key indicators in corporate social responsibility.
Those are our ambitions for 2020, which we are going to fulfill.
the industry
Goals
01.Membership in the Respect Index of listed companies observing corporate social responsibility
Ambitions in 2020
01.Membership in the index at least at average level for the industry
Goals
01.NPS for retail clients in insurance versus the competition
02.Indicator concerning the timeliness of examining complaints
Ambitions in 2020
01.> the competition
02.95% to 28 days
Goals
01.Employee commitment index
02.% of women in managerial positions
Ambitions in 2020
01.55%
02.at least 50%
Goals
01.Implementation of the Group’s “Green PZU” standard
Ambitions in 2020
01.Fully implemented (100%)
Goals
01.Risk assessment framework score (BION) for PZU and PZU Życie
Ambitions in 2020
01.Good
Goals
01.Financial commitment to social activity
Ambitions in 2020
01.> 50 m PLN per annum
Goals
01.Percentage of suppliers adhering to the “Code of CSR Best Practices for PZU’s Suppliers”
Ambitions in 2020
01.90% of contracts contain an obligation to adhere to the “Code of CSR Best Practices for PZU’s Suppliers”
Shareholders and performance
Another year in a row with an increase in the share of foreign investors in the PZU shareholder structure. Check our interactive map
