Value Creation Model
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)
