The largest Polish insurer has published its financial results after Q3 2017. Gross written premium was up 15.1% y/y to PLN 16.9 billion. Aa a consequence PZU’s profit has doubled. The PZU Group’s net profit rose to PLN 3 billion versus PLN 1.5 billion in the first three quarters of 2016. In turn, the parent company’s net profit has climbed to PLN 2.1 billion versus PLN 1.3 billion in the first three quarters of 2016.
In the first three quarters of 2017 the PZU Group collected a gross written premium of PLN 16,933 million, i.e. 15.1% more than in the corresponding period of the previous year. This is largely the offshoot of higher motor insurance sales in the mass client segment (PLN +1,087 million) and the corporate client segment (PLN +300 million) due to the higher average premium and the higher number of insurance policies. The premium in the individual insurance segment also rose by PLN 346 million, driven mainly by higher sales of unit-linked products in the bancassurance channel. In addition, the international companies posted premium growth of PLN 173 million.
“The PZU Group has assets of PLN 300 billion at its disposal that have generated a net profit in excess of PLN 3 billion in the first three quarters of 2017, i.e. nearly double the level generated in the corresponding period of 2016. Such a high growth rate is due to the Group’s greater presence in the banking sector and improved profitability in its core insurance activity. Importantly, despite the higher loss ratio posted in Q3 chiefly related to the strong storms and rainfall that pummeled Poland, we stayed profitable in all key lines of business. Steady investments in foundations to guarantee PZU’s growth, taking care of its client base and maintaining cost discipline mean that even in challenging market circumstances we are capable of effectively managing our capital and generating a high level of earnings while offering the highest standards of service”, says Paweł Surówka, CEO of PZU SA.
The following factors exerted in particular a positive influence on the PZU Group’s financial results in the first three quarters of 2017:
- higher gross written premium in motor insurance in the mass and corporate client segments, mainly following an increase in average premium and the number of insurance policies and in individual insurance, in particular unit-linked products in the bancassurance channel;
- higher profitability in the mass insurance segment is associated mainly with the lower loss ratio in agricultural insurance (in the corresponding period of the previous year, numerous losses caused by the forces of nature occurred – the adverse effects of ground frost) and, to a lesser extent, with the improved profitability in motor TPL insurance;
- better performance in the banking segment following the high level of Alior Bank’s sales of loan products supported by the favorable business climate;
- higher investment income, in particular due to better market conditions on the Warsaw Stock Exchange.
