GRUPA PZU | Factsheet 1Q 2022
#1 | PLN 425 bn | 40 tys. | 22 mln | 99% | STRONG |
largest insurance | aktywów | employees | clients | most recognizable | BALANCE SHEET |
BALANCE SHEET | |||||
brand in Poland | Solvency II ratio above | ||||
and banking | |||||
average for insurance | |||||
group in CEE | |||||
groups in Europe | |||||
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 of March2022, PZU's market capitalization amounted to PLN 29.2 bn. The State Treasury with a 34.19% equity stake is PZU's main shareholder.
The Group companies offer not only in life, non-life and health insurance but also in banking, investment, pension and health care products. They also render assistance services to retail clients and businesses through strategic partnerships. The Group's operations are founded 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 strategic ambition is to develop ecosystems, which will provide comprehensive solutions to institutional as well as individual clients. They will create new opportunities to build long-lasting relations with clients in daily life. The key elements that contribute to building an entrenched technological advantage in integrated client service include further digitization, use of artificial intelligence (AI), big data and advanced analytics, as well as mobile and omni-channel solutions. The technological transition will be supported by the use of cloud computing.
The PZU Group is committed to the development of a responsible organization, strongly emphasizing the ESG (environment, social and governance) factors in its strategy. The priority for the PZU Group is to generate benefits for its shareholders and clients in a sustainable and responsible manner. The success of the PZU Group will be built based on contemporary business models widely incorporating ESG criteria. The Group supports the development of low-carbon economy, is committed to just energy transition and encourages communities to adopt sustainable and safe lifestyles and builds a modern, responsibly-managed organization.
BUSINESS MODEL
MARKET POSITION
Smart client needs analysis
Utilization of Big Data
Solutions based on artificial intelligence
Robotics
Advanced under writing and tariff- -setting methods
Insurance
Protection against the effects of events of chance - risk valuation, premium calculation and investment, payment of claims
Health
Health care - offering health insurance and medical care services, prophylactics, prevention, promoting a healthy lifestyle
Investments
Financial security protection - growing savings, capital accumulation programs
Comprehensive offer based on client knowledge and their real needs
Long-term partnership
Products and services accessible to clients whenever and wherever they want them
Risk mitigation
Safeguarding
#1 | |
#1 | |
#2 | |
#8 | |
TFI PZU | #3 |
OFE PZU | #3 |
Pekao TFI | #5 |
#3 |
non-life insurance
life insurance
ESTONIA
LATVIA
LITHUANIA
POLAND
UKRAINE
#7
#3
market position in terms of assets in management
market position in terms of assets
#4
#1
#1
#6
market position in terms of revenue from medical activities
Flexible and multi-channel distribution network
Innovative mobile solutions
Fast and efficient service
Banking
Conducting banking activities, including taking deposits, extending credits and loans, running bank accounts, handling cash settlements and rendering payment services
financial security needs
MARKET SHARE in Poland (4Q 2021)
Life protection (group 1) | PZU 54.80% | ||||||||
Life periodical premium | PZU 43.70% | ||||||||
Motor | PZU 33.50% | ||||||||
Non-life | PZU 32.30% | ||||||||
0% | 20% | 40% | 60% | 80% | 100% |
FINANCIAL HIGHLIGHTS
PLN million | 2020 | 2021 | 1Q 2021 | 1Q 2022 | |
A) PZU GROUP NET OF ALIOR BANK AND BANK PEKAO | |||||
Gross written premiums | 23,866 | 25,080 | 6,148 | 6,253 | |
Net result on investing activity including interest | 2,044 | 2,012 | 720 | 105 | |
expenses | |||||
Net insurance claims and benefits paid | (15,580) | (15,731) | (3,926) | (3,690) | |
Acquisition expenses | (3,317) | (3,572) | (837) | (917) | |
Administrative expenses | (1,801) | (1,734) | (437) | (437) | |
Operating profit | 3,941 | 3,635 | 1,035 | 675 | |
Net profit attributable to equity holders of the | 3,106 | 2,732 | 794 | 517 | |
parent company | |||||
B) Impairment attributable to equity holders of the | (1,343)4 | - | - | - | |
parent company | |||||
C) BANKS: ALIOR BANK AND BANK PEKAO | |||||
Net profit attributable to equity holders of the | 149 | 604 | 86 | 241 | |
parent company | |||||
(A+B+C) NET PROFIT ATTRIBUTABLE TO | 1 912 | 3 336 | 880 | 758 | |
EQUITY HOLDERS OF THE PARENT COMPANY | |||||
Total assets | 378,974 | 402,129 | 395,418 | 424,559 | |
Equity attributable to the owners of the parent | 18,777 | 17,080 | 19,374 | 16,967 | |
company | |||||
Robust net result in challenging market conditions
PLN m
-13.9% | |
880 | |
758 | |
383 | +52.5% |
497 | |
1Q21 | 1Q22 |
Adjusted net profit
Effects of the measurement of the logistics company
Business profitability surpasses strategic ambitions
GWP | Net result |
6.3 bn PLN | 758 m PLN |
(versus 6.1 in 1Q21) | (versus 880 in 1Q21) |
Gross Written Premium structure (1Q 2022) | ROE |
17.8%1 | |
Non-life | Operating margin2 | Combined ratio3 | |
57.2% | 13.1% | 90.0% | |
Baltic States | (versus 10.2% in 1Q21) | (versus 89.1% in 1Q21) | |
Poland | |||
and Ukraine | |||
9.8% | 90.2% | ||
Life | |||
33.0% | Financial strength rating and credit rating | ||
awarded to PZU by S&P |
Percentage share of business segments in the operating result | A- |
(adjusted for PZU's shares in banks in 1Q 2022) | /STABILNA/ |
63.0% | |
INSURANCE | |
investment and pension products | 2.1% |
INSURANCE |
Baltic | |
States | 1.4% |
33.5% | INSURANCE |
BANKING | |
Poland | |
Ukraine |
PZU'S STOCK
Number of shares | 863,523,000 | P/E | 9.1x | Average trading value | PLN 90.0 mł |
per session | |||||
Free float (%) | 65.81% | P/BV | 1.7x | Average number of | 7,009 |
trades per session | |||||
Market capitalization | PLN 29.2 bn | D/Y | 5) | Average trading | 2,670,584 shares |
volume per session | |||||
Shareholder structure (31 December 2021) | Recommendations statistics (31 March 2022) |
International | ||
32.8% | -0.5 p.p. | |
Poland | + 0.5 p.p. | |
67.2% | ||
change 2021/2020 |
State Treasury | |
34.2% | 0.0 p.p. |
Institutional investors | |
24.1% | +0.1 p.p. |
Individual investors | +0.4 p.p. |
8.8% |
3 | Buy, Outperform | |
9 | 4 | Neutral, Hold |
2 | Underperform, Reduce | |
Highest target price | PLN 50.0 | |
Average target price | PLN 40.3 | |
Lowest target price | PLN 32.0 |
PZU's share performance - min/max share price at session closing
60 zł | 3 000 pkt | ||||||||||||||||||||||||||||||
50 zł | 37.82 | 2 750 pkt | |||||||||||||||||||||||||||||
2 500 pkt | |||||||||||||||||||||||||||||||
40 zł | |||||||||||||||||||||||||||||||
2 250 pkt | |||||||||||||||||||||||||||||||
30 zł | 2 000 pkt | ||||||||||||||||||||||||||||||
20 zł | 29.21 | 1 750 pkt | |||||||||||||||||||||||||||||
10 zł | 1 500 pkt | ||||||||||||||||||||||||||||||
1 250 pkt | |||||||||||||||||||||||||||||||
0 zł | 05.2010 - 2015 | 2016-2020 | 2021 | 1 000 pkt | |||||||||||||||||||||||||||
Min/max | 2022 | ||||||||||||||||||||||||||||||
PZU | WIG 20 | ||||||||||||||||||||||||||||||
PZU's earnings per share and dividend per share | |||||||||||||||||||||||||||||||
92% | 83% | 79% | 89% 5 | 87% | 77% | 62% | 75% | 75% | |||||||||||||||||||||||
5.4 | |||||||||||||||||||||||||||||||
3.8 | 3.8 | 3.7 | 3.8 | 3.9 | |||||||||||||||||||||||||||
3.4 | 3.4 | 3.5 | 6 | ||||||||||||||||||||||||||||
2.8 | 2.6 | 2.7 | 3.0 | 3.0 | 2.7 | 2.5 | 2.8 | ||||||||||||||||||||||||
2.3 | 2.2 | ||||||||||||||||||||||||||||||
2.2 | 2.1 | ||||||||||||||||||||||||||||||
1.4 | |||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 7 | ||||||||||||||||||||
Earnings per share (EPS) attri. to the parent company for a given year (PLN) | Dividend per share (in PLN) from the profit for a given year (DPS) | ||||||||||||||||||||||||||||||
Ratio of dividend payment for a given year |
STRATEGY EXECUTION- FINANCIAL MEASURES
ROE (%)8 | |||||||||||||||
1Q | 18.6 | +6.5 p.p. | |||||||||||||
17.8 | 17.4 | ||||||||||||||
10.9 | 18.5 | ||||||||||||||
8.0 | |||||||||||||||
2.9 | |||||||||||||||
2022 | |||||||||||||||
2020 | 2021 | 2024 | |||||||||||||
PZU'S GROSS WRITTEN PREMIUM9 | PZU'S NET PROFIT10 (BN PLN) | ||||||||||||||
(BN PLN) |
23.9 | 25.1 | 26.2 | 3.3 | 3.4 | ||||||||||||
17.8 | 18.9 | 1.9 | 2.5 | |||||||||||||
6.3 | +1.7% | 1.8 | 0.8 | -13.9% | ||||||||||||
0.9 | ||||||||||||||||
6.1 | 6.1 | |||||||||||||||
0.1 | ||||||||||||||||
2020 | 2021 | 2022 | 2024 | 2020 | 2021 | 2022 | 2024 |
SOLVENCY II RATIO (%) | HEALTH PILLAR REVENUE (BN PLN) |
236 | 221 | ≥ 200% | ||||||||||||||
1.7 | ||||||||||||||||
0.9 | 1.2 | |||||||||||||||
0.9 | 0.3 | |||||||||||||||
0.7 | +14.7% | |||||||||||||||
0.2 | 0.3 | |||||||||||||||
2020 | 14 | 2024 | ||||||||||||||
2020 | 2021 | 2022 | 2024 | |||||||||||||
2021 |
BANKS' CONTRIBUTION TO PZU GROUP'S | ASSETS UNDER MANAGEMENT13 | ||||||||||||||||||||||||||||
NET RESULT 11 (BN PLN) | (BN PLN) | ||||||||||||||||||||||||||||
+700.0% | +81.8% | ||||||||||||||||||||||||||||
0.8 | |||||||||||||||||||||||||||||
0.6 | 35.1 | 60.0 | |||||||||||||||||||||||||||
33.0 | 32.7 | ||||||||||||||||||||||||||||
0.1 | |||||||||||||||||||||||||||||
0.5 | 0.2 | 5.8 | |||||||||||||||||||||||||||
0.1 | 35.0 | ||||||||||||||||||||||||||||
Q1 | 0.1 | +180.2% | 27.2 | ||||||||||||||||||||||||||
0.1 | 0.1 | ||||||||||||||||||||||||||||
2020 | 2021 | 2022 | 2024 | ||||||||||||||||||||||||||
202012 | 2021 | 2022 | 2024 | ||||||||||||||||||||||||||
STRATEGY EXECUTION- ESG INDICATORS
Implementation 2021
ESG targets
in Senior
Management
objectives
55%
500 m
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 CO21 emissions15
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
- Targets were allocated to all WKK involved in strategy execution
- Execution of 100%
- Assessment methodology developed
- The level of the indicator will be reported from 2022
- An investment was made for 450 m PLN
- Supplier segmentation was conducted
- The level of the indicator will be reported from 2022
- Reduced emissions16: 26,2%
- Electricity from RES (~80%)
- Offsetting 17 thousand tons of CO2 by purchasing carbon dioxide units from the State Forests
- The #DobryStan (#Well-being) strategy was developed and implemented
- The level of the indicator will be reported from 2022
- 10 million recipients
- Execution of 100%
PRZYPISY:
- ROE attributed to equity holders of the parent company, annualized; 2) Margin in 1Q21 and 1Q22 for the group and individually continued insurance segment;
- Non-lifeinsurance in the PZU Group (Poland); 4) including the impairment loss on goodwill arising from the acquisition of Alior Bank (PLN 746 million) and Bank Pekao (PLN 555 million) and the impairment loss on assets arising from the acquisition of Alior Bank (i.e. trademark and relations with clients, after incorporating the impact of deferred tax and minority interest) in the amount of PLN 42 million; 5) The payout ratio net of the dividend payout from excess capital (PLN 2 per share); 6) On 26 March
2020, the Polish Financial Supervision Authority (KNF) issued a decision prohibiting the disbursement of dividends in 2020 by insurance companies and banks from their
2019 profits. On 16 December 2020 the Polish Financial Supervision Authority (KNF) issued a decision allowing the disbursement of dividends in an amount equal to 100% of the 2019 profit and 50% of the 2020 profit. On 12 May 2021 the Supervisory Board issued a positive opinion on the Management Board's motion to the OGM for dividend payment of PLN 3.5 per share; 7) Up to the date of preparing Report for Q1 2021, the Management Board has not adopted a resolution concerning the proposed distribution of profit for 2021; 8) Przypisane właścicielom jednostki dominującej; 9) PZU Group's gross written premium; 10,11) Net profit attributable to equity holders of the parent company;
- Net of the impairment loss for goodwill on the acquisition of Bank Pekao and Alior Bank; 13) Third party assets under management TFI PZU, Pekao TFI i Alior TFI; 14) It does not incorporate the new rules set forth in the Polish FSA's circular to insurance undertakings dated 16 April 2021; 15) Climate neutrality in PZU and PZU Życie in terms of emissions unders scope 1 and scope 2; 16) PZU and PZU Życie, location-based method
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PZU - Powszechny Zaklad Ubezpieczen SA published this content on 25 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2022 18:28:02 UTC.