POLAND: S&P Global Ratings rated PZU at A-

8 November 2021 — Marina MAGNAVAL
On November 3, S&P Global Ratings affirmed the rating of the PZU Group at A- with a stable outlook. According to the agency, the company maintained good financial results and a stable capital position, and the group's dominant market position, recognizable brand and diversified structure will allow for continued growth, both on local and foreign markets, Gazeta Ubezpieczeniowa reports.

The S&P report forecasts that PZU's net profit in 2021-2022 will allow it to achieve a high level of return on equity (ROE). The agency's analysts emphasized that in the difficult year 2020, the group's ROE amounted to 10.9%, which is above the average thanks to very good profitability of the insurance activity. S&P assumes that PZU will maintain this trend, which should be also strengthened by the growing contribution of banking activity to the group's result.

The agency's analysts mentioned insurance business, asset management and health services as the most promising areas of PZU's activity in 2021-2022.

"In October, we paid this year's record-breaking dividend on the Warsaw Stock Exchange. PZU shareholders received a total of over PLN 3 billion, and the dividend yield was 9%. In line with the current strategy, in the coming years PZU will remain a dividend company, allocating for this purpose every year from 50% to 100% of the net profit. Therefore, maintaining appropriate capital buffers is our top priority. The S&P assessment of PZU's capital strength at the AAA level, combined with the fact that our Solvency II solvency ratio significantly exceeds 200%, shows that we are ready for various scenarios on the capital market and the entire economy - and resistant to the negative ones", says Tomasz KULIK, member of the PZU management board and group financial director.

It's worth noting that S&P Global Ratings has been evaluating PZU since 2004 and the rating was never below the A- level.



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