“The results in 2024 confirm our great resilience, stability and capital strength. They are a strong base for transformation that will allow us to move PZU to a higher level of transparency and managerial, operational and business efficiency”, said Andrzej Klesyk, acting CEO of PZU. “We will operate within the framework of previously chosen strategic directions, but internally we will increase our ambitions regarding development of the main business lines. We will focus on activating cross-selling in the Group, increasing sales in exclusive channels, improving profitability of motor insurance, and reorganizing our activities in the healthcare field”, explained the acting CEO of PZU.
Towards a more effective structure
A holding structure for the PZU Group will be designed as part of the current strategy. “The priority is to release potential of the PZU Group, which requires a real focus on strategy, greater transparency in managing business areas and reporting, as well as better capital management. That is why we ultimately want to transform the PZU Group into a holding”, said Andrzej Klesyk. “This will release additional capacity and will have a positive impact on our business effectiveness, speed of response to dynamically changing challenges, as well as on the results achieved and benefits for shareholders”, added Andrzej Klesyk.
Achieved goals of the 2021-2024 strategy
The past year marked the end of the previous PZU Group strategy, adopted in 2021. The targets set for 2024 were exceeded, including the level of gross insurance revenues (by 5.1% compared to the target), net profit attributable to shareholders of the parent company (by 24.2%), value of assets under management (by 9.6%), revenues in the healthcare segment (by 11.2%), aROE (18% vs the target of 15.5%).
Impact of weather damage
The profitability and result from insurance services, and thus the PZU Group's net result in 2024, were affected by numerous weather events. Last year, spring frosts, then heavy hail and torrential rains, and a major flood in southwestern Poland significantly increased the costs of claims and benefits, mainly in agricultural and non-motor property insurance. The negative impact of weather events, estimated at PLN 404 million would mean that the PZU Group's result in 2024 would be practically identical to the previous year. It is worth noting that from September 12 to December 31 last year, PZU accepted almost 50,000 flood damage reports and settled as many as 99% of them, paying PLN 424.5 million in advances and compensation to injured parties during that period.
Property and life insurance
PZU's revenue from property and other personal insurance on the Polish market in 2024 increased by 10.8%, to over PLN 17.8 billion. Higher revenues were accompanied by good profitability. The combined COR ratio amounted to 92.5% in 2024.
Both in the mass segment (individual clients, SMEs, farms) and the corporate segment (large companies and institutions), sales of non-motor property insurance grew the fastest in the entire year and in its last quarter. Revenues in this product group increased by 15.1%. The motor insurance segment grew dynamically (+10.8%).
The Group's revenue from life insurance on the Polish market increased by 7.4% y-o-y last year, to nearly PLN 8.7 billion. The operating margin amounted to 27%, which means it increased by almost 3 percentage points.
2024 brought a clear rebound in the bancassurance area. In the last quarter alone, the PZU Group generated PLN 596 million in the banking channel, which means an increase of 49.4% y-o-y.
Health segment
PZU Group's revenues in the health segment last year amounted to almost PLN 1.9 billion and were 18.1% higher y-o-y. Revenues generated by the branches of the constantly developing PZU Zdrowie network increased by 15.8%, while revenues from insurance and medical subscriptions increased by 19.8%.
The full report of the Group can be found here.
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