GRUPA PZU | Factsheet Q1 2023

#1

PLN 436 bn

~38 thou.

22 mln

99%

STRONG

largest insurance

assets

clients

most recognizable

BALANCE SHEET

and banking

employees

brand in Poland

Solvency II

group in CEE

on safe level

The Powszechny Zakład Ubezpieczeń Group is the largest financial conglomerate in Poland and Central and Eastern Europe. The Group is headed by PZU, which has the status leading entity in the conglomerate. PZU's traditions dating back to 1803. PZU's stock are listed on the Warsaw Stock Exchange (WSE) being part of the WIG20 index and WIG ESG (sustainability) index. PZU is one of the most highly valued companies and heavily traded stocks on the Polish stock exchange. At the end Q1 2023, PZU's market capitalization amounted to

PLN 30.3 bn. The State Treasury with a 34.19% equity stake is PZU's main shareholder.

PZU GROUP RESULTS ACCORDING TO IFRS 17

PLN million

1Q 2022

1Q 2023

A) PZU GROUP NET OF ALIOR BANK AND BANK PEKAO

Gross insurance revenue

5 999

6,401

Net insurance revenue

5,751

6,035

Insurance service expenses (net)

(4,892)

(5,181)

Insurance service result

859

854

Net financial revenue

110

285

Operating profit

969

1,139

Net profit attributable to equity holders of the

643

743

parent company

B) BANKS: ALIOR BANK AND BANK PEKAO

Net profit attributable to equity holders of the

241

412

parent company

(A+B) NET PROFIT ATTRIBUTABLE TO EQUITY

884

1,155

HOLDERS OF THE PARENT COMPANY

New IFRS 17. Follow-up of the strategy and value building

PLN m

Net profit and return on equity attributable to equity holders of the parent company

1,155

1,081

+30.7%

884

758

1Q22

1Q23

IFRS17

IFRS4

Return on equity exceeds strategic ambitions

The Group companies offer not only in life, non-life and health insurance but also in banking, investment, pension and health care products.

Gross insurance revenue according to IFRS 17 (PLN billion)

Insurance service result

They also render assistance services to retail clients and businesses through strategic partnerships. The Group's operations are founded

PLN 854 million

on clients' trust. The Group places the client in the center of attention and integrates all areas of activity around the client. The Group's

6.7%

(COR2 85.7%, Margin3 15.3%)

strategic ambition is to develop ecosystems, which will provide comprehensive solutions to institutional as well as individual clients. They will

6.0

6.4

19.4% y/y

Net profit

create new opportunities to build long-lasting relations with clients in daily life. The key elements that contribute to building an entrenched

operations

0.5

11.4% y/y

PLN 1.16 bn

Foreign

0.6

technological advantage in integrated client service include further digitization, use of artificial intelligence (AI), big data and advanced

(vs. PLN 0.88 bn in 1Q22)

Result on investment portfolio

analytics, as well as mobile and omni-channel solutions. The technological transition will be supported by the use of cloud computing.

Non-life

3.4

3.8

PLN 600 million

aROE1

(+35% vs. 1Q22)

The PZU Group is committed to the development of a responsible organization, strongly emphasizing the ESG (environment, social and

-4.2% y/y

18.9%

governance) factors in its strategy. The priority for the PZU Group is to generate benefits for its shareholders and clients in a sustainable and

(vs. 15.5% in 1Q22)

Life

Banks' contribution to the Group's

2.1

2.0

responsible manner. The success of the PZU Group will be built based on contemporary business models widely incorporating ESG criteria.

result

The Group supports the development of low-carbon economy, is committed to just energy transition and encourages communities to adopt

-4.2%

PLN 412 million

sustainable and safe lifestyles and builds a modern, responsibly-managed organization.

2.08

1.99

(vs. PLN 241 million in 1Q22)

0.04

0.29

0.04

0.35

1.74

1.60

SIMPLIFIED PRESENTATION OF THE BUSINESS MODEL

MARKET POSITION

1Q22

1Q23

Financial strength rating and credit rating

Release of adjustment due to non-financial risk

CSM release

awarded to PZU by S&P

Expected benefits and costs

PZU - parent company operating

#1

#4

A-

in non-life insurance

ESTONIA

(listed on the Warsaw Stock Exchange)

#1

#1

Percentage share of business segments in the operating result

LATVIA

(adjusted for PZU's shares in banks in Q1 2023)

INSURANCE

LITHUANIA

#1

/STABLE/

#2

#6

main business activity

POLAND

56.1%

100% of shares in TUWPZUW

X

#8

100% of shares in PZU Życie

100% of shares in LINK4

TFI PZU

#3

UKRAINE

INSURANCE

90-100% of shares in foreign

+

insurance premiums

OFE PZU

#3

investment and pension products

5.6%

companies

income from investments

Pekao TFI

#5

HEALTH

+

INSURANCE

and health activities

100% of shares in PZU Zdrowie

-/+

claims paid and change

#3

in provisions

#9

(including 20% of shares through

costs

PZU Życie)

-

#5

INWESTYCJE

100% of shares in TFI PZU

Baltic

non-life insurance

market position in terms of

assets in management

of revenue from medical

States

1.9%

market position in terms

36.4%

terms of assets

activities

life insurance

market position in

INSURANCE

reinvestment

X + Y

capital

BANKING

net result attributable to equity holders

and development

of the parent company

dywidend

MARKET SHARE in Poland (4Q 2022)

Poland

Y

Life protection (group 1)

PZU 52.3%

Ukraine

BANKS

Life periodical premium

PZU 43.0%

32% of shares in Alior Bank

+/-

32% of the net result

Motor

PZU 33.7%

20% of shares in Bank Pekao

of Alior Bank

Non-life

PZU 31.6%

+/-

20% of the net result

of Bank Peako

0%

20%

40%

60%

80%

100%

PZU'S STOCK

Number of shares

Free float (%)

Market capitalization

863,523,000

65.81%

PLN 30.3 bn

P/E

P/BV

D/Y

8.2x

1.7x

5.5%6)

Average trading value

per session

Average number of trades per session

Average trading

volume per session

PLN 61.0 m

4,922

1,726,903 shares

STRATEGY EXECUTION- FINANCIAL MEASURES aROE6 (%)

18.9

FY2024

15.5

15.5%

Shareholder structure (31 December 2022)

Recommendations statistics (31 December 2022)

KPI

International

31.8%

-1.0 p.p.

Poland

+ 1.0 p.p.

68.2%

State Treasury

34.2%

0.0 p.p.

Institutional investors

23.4%

-0.8 p.p.

7

Buy, Outperform

12

5

Neutral, Hold

0

Underperform, Reduce

Highest target price

PLN 49.0

Average target price

PLN 37.4

GROSS INSURANCE REVENUE7 (PLN million)

PZU GROUP NET PROFIT8 (PLN million)

change 2022/2021

Individual investors

+1.8 p.p.

10.6%

Lowest target price

PLN 27.7

5,999

6,401

+6.7%

FY2024

> PLN 28 bn

KPI

1,155

FY2024

884

+30.7%

PLN 4.3 bn

KPI

1Q22

1Q23

PZU's share performance - min/max share price at session closing

1Q22

1Q23

60 PLN

51.10

  1. PLN
  1. PLN

30 PLN

29.21

20 PLN

10 PLN

0 PLN

05.2010 - 2015

PZU

WIG 20

Price min/max

49.06

2016-2021

20.55

37.82

23..16

2022

3 000 pts

2 750 pts

2 500 pts

2 250 pts

2 000 pts

1 750 pts

63

1 500 pts

1 250 pts

1 000 pts

2023

SOLVENCY II RATIO9 (%)

221

240

+19.0 p.p.

2024

≥ 200%

KPI

2021

2022

HEALTH PILLAR REVENUE (PLN million)

390

FY2024

298

+30.9%

PLN 1.7 bn

KPI

1Q22

1Q23

PZU's earnings per share and dividend per share

Earnings per share (EPS) attributable to the parent company for a given year (PLN) 5.0

Dividend per share (in PLN) as at the date of establishing dividend right by the General Meeting

BANKS' CONTRIBUTION TO PZU GROUP'S

ASSETS UNDER MANAGEMENT10

NET RESULT (PLN million)

(PLN billion)

3.8

3.8

3.4

3.4

3.0

2.8

2.7

2.6

2.7

2.2

1.1

3.7

3.8

3.9

3.5

3.4

2.5

2.8

2.3

2.1

2.2

1.4

FY2024

412

PLN 1.0 bn

241

KPI

1Q22

1Q23

+71.0%

PLN 60.0

2024

32.7

40.9

bn

KPI

1Q22

1Q23

+25.2%

2013

2010

2011

2012

7)

2014

2015

2016

2017

2018

2019

2020

2021

STRATEGY EXECUTION- ESG INDICATORS

Implementation 2021

ESG targets

in Senior

Management

objectives

55%

500m

70%

scope

of emis-

sions

1 and 2

70%

10-15

m

Giving consideration to ESG targets in the Company's strategic objectives and handing them over for execution by Senior Management

ESG assessment of 55% of the biggest corporate insurance clients from sectors sensitive to ESG risks

Increase of the current exposureto investments supporting climate and energy transition by 500 m PLN in 2021- 2024

Percentage of key procurement processes which give consideration to ESG criteria

Reaching climate neutrality of own operations thanks to reduction of emissions, purchase of green energy and offsetting CO2 emissions14

Percentage of employees covered by the #Well-being program

Number of recipients of social activities in the area of safety and sustainable lifestyle during the year

Giving consideration to ESG targets in the Company's strategic objectives and handing them over for execution by Senior Management

Top 20% of corporate insurance clients in ESG-sensitive sectors assessed for ESG factors

716,7 m PLN - increased involvement of PZU and TFI PZU in investments supporting the climate-energy transition (from 2021)

Consideration of ESG criteria in 46% of key purchasing processes

Reduced emissions: 25.5% (location- based method). 81% electricity from RES. Offsetting 17,508 thousand tons of CO2 compensation for 2021.

39% of employees using the offer #DobryStan

12 m recipients

CONTACT FOR INVESTORS::

Magdalena Komaracka, CFA, IR Director

Piotr Wiśniewski, IR Manager

+48 22 582 22 93

mkomaracka@pzu.pl

+48 22 582 26 23

pwisniewski@pzu.pl

ANNOTATION:

  1. aROE in 1Q23 attributable to equity holders of the parent company, annualized, return on equity excluding the cumulative effect of changes in discount rates for the valuation of insurance liabilities; 2) Non-lifeinsurance in the PZU Group (Poland); 3) Margin for the group and individually continued insurance segment; 4) Ratio calculated as dividend (according to the year in which the right was established) compared to share price as at the end of the previous reporting year; 5) In 2013, the dividend was paid out from the excess capitals (PLN 2 per share); 6) Adjusted return on equity (aROE %). Calculated on the equity basis excluding other comprehensive income from insurance operations (being the impact of changes in the macroeconomic environment on the PZU Group's capital base).; 7) PZU Group's gross insurance revenue;
  1. Net profit attributable to the equity holders of the parent company; 9) With the exception of the rules included in the circular letter of the KNF to insurance companies dated 16.04.2021; 10) External client assets under management of TFI PZU, Pekao TFI and Alior TFI; 11) Climate neutrality in PZU and PZU Życie in terms of emissions unders scope 1 and scope 2

PZU SA

rondo Ignacego Daszyńskiego 4 00-843 Warszawa

ir@pzu.pl

www.pzu.pl/ri

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Disclaimer

PZU - Powszechny Zaklad Ubezpieczen SA published this content on 04 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 July 2023 09:57:09 UTC.