This was a record-breaking quarter in terms of sales in the PZU Group’s history. Gross written premium was PLN 6.1 billion. In the first half of the year the Group reported PLN 11.9 billion, which is also the best six-month result in its history. Consolidated net profit in H1 2018 was PLN 2.4 billion. That signifies 38.3% growth versus H1 2017.
“Q2 2018 shattered sales records. We generated a gross written premium of PLN 6.1 billion, PZU’s best result in history. The H1 result we posted was also record breaking as it brought in PLN 11.9 billion. During the first six months of the year as a group we earned a consolidated net profit of PLN 2.4 billion. That is a 38% increase in comparison with H1 2017. In turn, the parent company’s profit in Q2 was PLN 782 million. That signifies 55% growth in comparison with the corresponding period of 2017. In subsequent quarters we will unwaveringly pursue our ambitious targets as set forth in the New PZU strategy. While developing our main business areas: insurance, banking, investments and health care services – we are supporting them by using modern technology such as artificial intelligence, telematics, mobile apps and Big Data”, said Paweł Surówka, CEO of PZU SA.
In H1 2018 the PZU Group generated a gross written premium of PLN 11,881 million, i.e. 2.4% more than in the corresponding period of the previous year. Growth materialized mainly in motor insurance and as a consequence of concluding several high-value contracts. Net claims and benefits in H1 2018 (including the movement in technical provisions) reached PLN 7,345 million, meaning they were 1.8% higher than in the corresponding period of the previous year. In turn, the increase in net claims and benefits (mainly in the class of motor insurance in the corporate client segment and the mass segment) was affected by the Q1 remeasurement of the provision for claims for general damages for the pain caused by the vegetative state of a relative injured in an accident. The higher claims paid in agricultural insurance are also the outcome of the higher number of claims in agricultural insurance (in the mass client segment) caused by ground frost and torrential rain and hail (Q2 2018).
The following factors in particular exerted a positive impact on the PZU Group’s financial results in H1 2018:
- the growth in gross written premium in motor insurance, the conclusion of several high-value contracts and higher sales in international companies;
- higher profitability in the corporate insurance segment due to rising earned premium and an increasing loss ratio in motor insurance, while administrative expenses remained flat and the acquisition expense ratio improved;
- higher profitability of the mass insurance segment driven mainly by the improved profitability of the motor insurance portfolio;
- increased profitability in group and individually continued insurance as a result of improvement in the loss ratio in protection products and changes in the mix of individually continued products;
- better performance in the banking segment at Alior Bank in connection with the high sales level of credit products supported by the good business climate and a low interest rate environment.
