PZU Group's Financial

Results

In 2Q23

Warsaw, 31 August 2023

Table of contents

PZU Group's main accomplishments

Business development

Financial results

PZU Group Strategy for 2021-2024

Attachments

3

10

22

33

36

1. PZU Group's main accomplishments

1. Main accomplishments

2. Business development

3. Results

4. Strategy

5. Attachments

Growth in sales, development of the scale, high profitability

Insurance revenue - 2Q23

PLN 4.0 bn (+10.2%)

Growth in sales

non-life insurance in Poland

Very good sales results

PLN 2.0 bn (+5.4%)

Dynamically growing sales of non-life

insurance, health and investment

life insurance in Poland

products

PLN 0.7 bn (+14.9%)

foreign operations

Assets under management

2Q23

PLN 45.4 bn (+47.4% y/y)

Strengthening position in asset management market

Net sales of investment funds by TFI PZU

PLN 1.3 billion in 1H23

Employee Capital Schemes (ECS) assets doubled y/y

Result on the main investment

portfolio - 2Q23

PLN 606 m (+17.3% y/y)

Positive impact of interest rates

Optimal conditions for reinvestment of a long term bond portfolio

High interest margin of banking business

Positive impact of interest rate

movement on PZU's standalone result

Higher interest rates create demand for insurance and investment products

Health Pillar revenue

1H23

PLN 760 m (+26.6% y/y)

Development of the Health Pillar

Growth of revenues by 26.6% y/y,

including a 31.0% year-on-year increase in insurance and subscription sales

Systematic increase in the number of contracts in 2Q23 - 3.37 million (+7.7%) at the end of June 2023

4

1. Main accomplishments

2. Business development

3. Results

4. Strategy

5. Attachments

Growth in sales of the last several quarters supports the growth in insurance revenue

Gross insurance revenue according to IFRS 17 (PLN billion)

9.2%

6.0

6.6

14.9% y/y

0.7

Foreign

0.6

10.2% y/y

Non-life

3.6

4.0

5.4% y/y

Life

1.9

2.0

+5.4%

1.89

1.99

0.36

0.04

0.30

0.04

1.55

1.60

2Q22

2Q23

CSM release

Release of adjustment due to non-financial risk

Expected benefits and costs

Year on year increase in insurance revenue to PLN 6.6 billion (+9.2% y/y)

Non-life insurance1

  • The y/y growth in insurance revenue to 4.0 billion (+10.2% y/y) reflects much higher growth rate of non-lifeinsurance sales in the second half of 2022 and, to a lesser extent, current year premiums (mainly MOD insurance and non-motor insurance)
  • MOD insurance (+16.8% y/y): growth in the number of contracts (recovery in the lease market, better availability of vehicles) and a higher value of vehicles insured
  • An increase in non-motor insurance revenues (+11.8% y/y) as a result of the acquisition of several large contracts, mainly in the corporate segment

Life insurance1

Year on year increase in insurance revenue (+5.4% y/y) results from:

  • Higher release of contractual service margin (CSM): PLN 357 m vs. PLN 300 m in the comparable period (growth of expected profits as a result of a significantly lower mortality - recovery of levels before the COVID-19 pandemic).
  • higher remuneration for insurance services covering administrative expenses and acquisition expenses affected by high inflation

1.

in Poland

5

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

PZU - Powszechny Zaklad Ubezpieczen SA published this content on 31 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2023 05:53:05 UTC.