- Gross written premiums: PLN 6,097 million (+3.3%), of which:
- GWP Poland non-life: PLN 3,435 million (+2.3%)
- GWP Poland life: PLN 2,175 million (+5.6%)
- GWP Baltic States non-life: PLN 404 million (+1.3%)
- GWP Ukraine non-life: PLN 56 million (+1.8%)
- GWP Ukraine life: PLN 23 million (+43.8%)
- GWP Lithuania life: PLN 19 million (+11.8%)
- Net insurance claims: PLN 3,281 million (-17.1%)
- Net investment result: PLN -276 million (1Q2019: 627)
- Non-life combined ratio: 87.4% (+0.4 pp.)
- Net profit (excl. Alior Bank and Pekao): PLN 577 million (-13.3%)
- Net result attr. to parent company: PLN 116 million (-84.5%)
The profitability in the non-life segment in Poland was maintained by a low combined ratio: 87.4% in 1Q2020 (1Q2019: 87.0%). Robust return on the main portfolio: 1.9 pp. above the risk-free rate, at a level similar to the ones posited in the strategy despite turbulence on the financial markets. Costs under strict control; despite pressure to raise wages the cost ratio was 7.0% in 1Q2020. ROE of 19.5% net of non-recurring events and the impact exerted by COVID-19; PZU among the insurers generating the highest ROE in Europe.
PZU Zdrowie's revenue went up 41% y-o-y in 1Q2020. TFI PZU - the only TFI on the market to see a net inflow of assets (while the overall market's outflows total nearly PLN 19 billion). Further strengthening of cooperation with banks leading to significant growth of new sales of life protection insurance in bancassurance and the number of insureds.
PZU has a rating of A- with a stable outlook, with a capital strength rating of AAA. The recommended retention of 2019 profit leaded to the Solvency II ratio growing to levels unseen in Europe: 245% at the Group level, 267% for PZU, 463% for PZU Zycie at the end of 2019.
Debt stated as a percentage of the funding mix trended downward - redemption of bonds with a nominal value of EUR 850 million in 2019. Diversification of the investment portfolio, especially by increasing the share of portfolios securing higher level of profitability in a low interest rate environment, including in particular investment-grade corporate debt and limiting equity risk by gradual reduction of equity exposures.
"The position of a stable market leader makes PZU immune to unforeseen events. This gives good prospects for the future, as evidenced by high sales and profitability of insurance. This is accompanied by a significant increase in the margin in the group and individually continued insurance segment as well as high profitability of insurance in the non-life segment in Poland. Here, the combined ratio amounted to 87.4 percent. and was 4.6 pp better than assumed in the strategy."