In This Article:
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Revenue from Insurance Services: PLN29 billion, an increase of PLN2.6 billion year-on-year.
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Profit: PLN5.3 billion.
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Adjusted ROE: 18%.
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Solvency II Ratio: 234% at the group level, 244% for PZU SA.
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Non-Motor Insurance Growth: 15% to 18% in written premium or revenues.
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Life Insurance Margin: More than 25%.
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Combined Ratio for Non-Life Insurance: Below 90% when adjusted for nonlinear events.
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Investment Portfolio Result: Positive, with a balanced asset and liability structure.
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Insurance Revenue Growth: Almost 10% year-on-year.
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Claims Ratio: Decreased to 56%.
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Combined Ratio: 86.6%.
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Mass Insurance Segment Growth: 16% in non-motor insurance, 12% in MOD.
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Corporate Insurance Segment Growth: 11.5% overall, 15% in non-motor insurance.
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Group and Individually Continued Insurance Growth: 7.6%, with a strong operating result of PLN603 million.
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Individual Protection Insurance Growth: 16.3% in revenue, 23% in CSM amortization.
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Net Promoter Score: Above the average market level.
Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Powszechny Zaklad Ubezpieczen SA (PZAKY) reported strong financial results for 2024, with revenues from insurance services reaching PLN29 billion, a year-on-year increase of PLN2.6 billion.
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The company achieved an adjusted Return on Equity (ROE) of 18%, indicating strong profitability and financial health.
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Non-motor insurance experienced double-digit growth, with written premiums or revenues increasing by 15% to 18%, showcasing robust performance in this segment.
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The company's investment portfolio showed positive results, contributing to a solid profitability of own capital on the balance side.
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Powszechny Zaklad Ubezpieczen SA (PZAKY) maintained a comfortable Solvency II ratio of 234% at the group level, indicating strong capital adequacy and financial stability.
Negative Points
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The company faced challenges due to natural disasters, such as frost in agricultural lands and flooding in the South of Poland, which negatively impacted profitability.
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Despite the increase in insurance prices, the average claim value grew at a faster rate, putting pressure on the profitability of motor insurance products.
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The company acknowledged a need to improve profitability in certain third-party channels, where competitors are earning profits while PZAKY reported losses.
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There is a concern about the sustainability of the current high profitability levels, with expectations that results may normalize in the future.
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The company is facing increased competition in the motor insurance market, which could impact future growth and profitability.