GRUPA PZU | Factsheet Q1 2023
#1 | PLN 436 bn | ~38 thou. | 22 mln | 99% | STRONG |
largest insurance | assets | clients | most recognizable | BALANCE SHEET | |
and banking | employees | brand in Poland | Solvency II | ||
group in CEE | |||||
on safe level | |||||
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 Q1 2023, PZU's market capitalization amounted to
PLN 30.3 bn. The State Treasury with a 34.19% equity stake is PZU's main shareholder.
PZU GROUP RESULTS ACCORDING TO IFRS 17
PLN million | 1Q 2022 | 1Q 2023 | |
A) PZU GROUP NET OF ALIOR BANK AND BANK PEKAO | |||
Gross insurance revenue | 5 999 | 6,401 | |
Net insurance revenue | 5,751 | 6,035 | |
Insurance service expenses (net) | (4,892) | (5,181) | |
Insurance service result | 859 | 854 | |
Net financial revenue | 110 | 285 | |
Operating profit | 969 | 1,139 | |
Net profit attributable to equity holders of the | 643 | 743 | |
parent company | |||
B) BANKS: ALIOR BANK AND BANK PEKAO | |||
Net profit attributable to equity holders of the | 241 | 412 | |
parent company | |||
(A+B) NET PROFIT ATTRIBUTABLE TO EQUITY | 884 | 1,155 | |
HOLDERS OF THE PARENT COMPANY | |||
New IFRS 17. Follow-up of the strategy and value building
PLN m
Net profit and return on equity attributable to equity holders of the parent company
1,155 | 1,081 | ||||||
+30.7% | |||||||
884 | |||||||
758 | |||||||
1Q22 | 1Q23 | ||||||
IFRS17 | IFRS4 | ||||||
Return on equity exceeds strategic ambitions
The Group companies offer not only in life, non-life and health insurance but also in banking, investment, pension and health care products. | Gross insurance revenue according to IFRS 17 (PLN billion) | Insurance service result | ||||||||||||||||
They also render assistance services to retail clients and businesses through strategic partnerships. The Group's operations are founded | PLN 854 million | |||||||||||||||||
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 | 6.7% | |||||||||||||||||
(COR2 85.7%, Margin3 15.3%) | ||||||||||||||||||
strategic ambition is to develop ecosystems, which will provide comprehensive solutions to institutional as well as individual clients. They will | 6.0 | 6.4 | 19.4% y/y | Net profit | ||||||||||||||
create new opportunities to build long-lasting relations with clients in daily life. The key elements that contribute to building an entrenched | operations | 0.5 | 11.4% y/y | PLN 1.16 bn | ||||||||||||||
Foreign | 0.6 | |||||||||||||||||
technological advantage in integrated client service include further digitization, use of artificial intelligence (AI), big data and advanced | (vs. PLN 0.88 bn in 1Q22) | Result on investment portfolio | ||||||||||||||||
analytics, as well as mobile and omni-channel solutions. The technological transition will be supported by the use of cloud computing. | Non-life | 3.4 | 3.8 | PLN 600 million | ||||||||||||||
aROE1 | (+35% vs. 1Q22) | |||||||||||||||||
The PZU Group is committed to the development of a responsible organization, strongly emphasizing the ESG (environment, social and | -4.2% y/y | 18.9% | ||||||||||||||||
governance) factors in its strategy. The priority for the PZU Group is to generate benefits for its shareholders and clients in a sustainable and | (vs. 15.5% in 1Q22) | |||||||||||||||||
Life | Banks' contribution to the Group's | |||||||||||||||||
2.1 | 2.0 | |||||||||||||||||
responsible manner. The success of the PZU Group will be built based on contemporary business models widely incorporating ESG criteria. | result | |||||||||||||||||
The Group supports the development of low-carbon economy, is committed to just energy transition and encourages communities to adopt | -4.2% | PLN 412 million | ||||||||||||||||
sustainable and safe lifestyles and builds a modern, responsibly-managed organization. | 2.08 | 1.99 | (vs. PLN 241 million in 1Q22) | |||||||||||||||
0.04 | 0.29 | 0.04 | 0.35 | |||||||||||||||
1.74 | 1.60 | |||||||||||||||||
SIMPLIFIED PRESENTATION OF THE BUSINESS MODEL | MARKET POSITION | 1Q22 | 1Q23 | Financial strength rating and credit rating | ||||||||||||||
Release of adjustment due to non-financial risk | ||||||||||||||||||
CSM release | awarded to PZU by S&P | |||||||||||||||||
Expected benefits and costs | ||||||||||||||||||
PZU - parent company operating | #1 | #4 | A- | |||||||||||||||
in non-life insurance | ESTONIA | |||||||||||||||||
(listed on the Warsaw Stock Exchange) | #1 | #1 | Percentage share of business segments in the operating result | |||||||||||||||
LATVIA | (adjusted for PZU's shares in banks in Q1 2023) | |||||||||||||||||
INSURANCE | LITHUANIA | #1 | /STABLE/ | |||||||||||||||
#2 | #6 | |||||||||||||||||
main business activity | POLAND | 56.1% | ||||||||||||||||
100% of shares in TUWPZUW | X | #8 | ||||||||||||||||
100% of shares in PZU Życie | ||||||||||||||||||
100% of shares in LINK4 | TFI PZU | #3 | UKRAINE | INSURANCE | ||||||||||||||
90-100% of shares in foreign | + | insurance premiums | OFE PZU | #3 | investment and pension products | 5.6% | ||||||||||||
companies | ||||||||||||||||||
income from investments | Pekao TFI | #5 | ||||||||||||||||
HEALTH | + | INSURANCE | ||||||||||||||||
and health activities | ||||||||||||||||||
100% of shares in PZU Zdrowie | -/+ | claims paid and change | #3 | |||||||||||||||
in provisions | #9 | |||||||||||||||||
(including 20% of shares through | ||||||||||||||||||
costs | ||||||||||||||||||
PZU Życie) | - | #5 | ||||||||||||||||
INWESTYCJE | ||||||||||||||||||
100% of shares in TFI PZU | Baltic | |||||||||||||||||
non-life insurance | market position in terms of | |||||||||||||||||
assets in management | of revenue from medical | States | 1.9% | |||||||||||||||
market position in terms | 36.4% | |||||||||||||||||
terms of assets | activities | |||||||||||||||||
life insurance | market position in | INSURANCE | ||||||||||||||||
reinvestment | X + Y | capital | BANKING | |||||||||||||||
net result attributable to equity holders | ||||||||||||||||||
and development | of the parent company | dywidend | MARKET SHARE in Poland (4Q 2022) | Poland | ||||||||||||||
Y | Life protection (group 1) | PZU 52.3% | Ukraine | |||||||||||||||
BANKS | Life periodical premium | PZU 43.0% | ||||||||||||||||
32% of shares in Alior Bank | +/- | 32% of the net result | Motor | PZU 33.7% | ||||||||||||||
20% of shares in Bank Pekao | of Alior Bank | Non-life | ||||||||||||||||
PZU 31.6% | ||||||||||||||||||
+/- | 20% of the net result | |||||||||||||||||
of Bank Peako | ||||||||||||||||||
0% | 20% | 40% | 60% | 80% | 100% | |||||||||||||
PZU'S STOCK
Number of shares
Free float (%)
Market capitalization
863,523,000
65.81%
PLN 30.3 bn
P/E
P/BV
D/Y
8.2x
1.7x
5.5%6)
Average trading value
per session
Average number of trades per session
Average trading
volume per session
PLN 61.0 m
4,922
1,726,903 shares
STRATEGY EXECUTION- FINANCIAL MEASURES aROE6 (%)
18.9 | |
FY2024 | 15.5 |
15.5% |
Shareholder structure (31 December 2022)
Recommendations statistics (31 December 2022)
KPI |
International
31.8% | -1.0 p.p. |
Poland | + 1.0 p.p. |
68.2% |
State Treasury | |
34.2% | 0.0 p.p. |
Institutional investors | |
23.4% | -0.8 p.p. |
7 | Buy, Outperform | |
12 | 5 | Neutral, Hold |
0 | Underperform, Reduce | |
Highest target price | PLN 49.0 | |
Average target price | PLN 37.4 |
GROSS INSURANCE REVENUE7 (PLN million) | PZU GROUP NET PROFIT8 (PLN million) |
change 2022/2021
Individual investors | +1.8 p.p. |
10.6% |
Lowest target price | PLN 27.7 |
5,999 | 6,401 |
+6.7% | |
FY2024 | |
> PLN 28 bn | |
KPI |
1,155 | ||
FY2024 | 884 | +30.7% |
PLN 4.3 bn | ||
KPI | 1Q22 | 1Q23 |
PZU's share performance - min/max share price at session closing
1Q22 | 1Q23 |
60 PLN
51.10
- PLN
- PLN
30 PLN
29.21
20 PLN | ||
10 PLN | ||
0 PLN | 05.2010 - 2015 | |
PZU | WIG 20 | Price min/max |
49.06
2016-2021
20.55
37.82
23..16
2022
3 000 pts
2 750 pts
2 500 pts
2 250 pts
2 000 pts
1 750 pts
63
1 500 pts
1 250 pts
1 000 pts
2023
SOLVENCY II RATIO9 (%)
221 | 240 |
+19.0 p.p. | |
2024 | |
≥ 200% | |
KPI | |
2021 | 2022 |
HEALTH PILLAR REVENUE (PLN million)
390 | ||
FY2024 | 298 | +30.9% |
PLN 1.7 bn | ||
KPI | 1Q22 | 1Q23 |
PZU's earnings per share and dividend per share
Earnings per share (EPS) attributable to the parent company for a given year (PLN) 5.0
Dividend per share (in PLN) as at the date of establishing dividend right by the General Meeting
BANKS' CONTRIBUTION TO PZU GROUP'S | ASSETS UNDER MANAGEMENT10 |
NET RESULT (PLN million) | (PLN billion) |
3.8 | 3.8 | 3.4 | |||
3.4 | 3.0 | ||||
2.8 | 2.7 | 2.6 | 2.7 | ||
2.2 | |||||
1.1 |
3.7 | 3.8 | 3.9 | ||
3.5 | ||||
3.4 | ||||
2.5 | 2.8 | |||
2.3 | 2.1 | 2.2 | ||
1.4 |
FY2024 | 412 | |
PLN 1.0 bn | 241 | |
KPI | 1Q22 | 1Q23 |
+71.0% | PLN 60.0 | 2024 | 32.7 | 40.9 |
bn | ||||
KPI | 1Q22 | 1Q23 | ||
+25.2%
2013 | ||||||||||||
2010 | 2011 | 2012 | 7) | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
STRATEGY EXECUTION- ESG INDICATORS
Implementation 2021
ESG targets
in Senior
Management
objectives
55%
500m
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 CO2 emissions14
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
Giving consideration to ESG targets in the Company's strategic objectives and handing them over for execution by Senior Management
Top 20% of corporate insurance clients in ESG-sensitive sectors assessed for ESG factors
716,7 m PLN - increased involvement of PZU and TFI PZU in investments supporting the climate-energy transition (from 2021)
Consideration of ESG criteria in 46% of key purchasing processes
Reduced emissions: 25.5% (location- based method). 81% electricity from RES. Offsetting 17,508 thousand tons of CO2 compensation for 2021.
39% of employees using the offer #DobryStan
12 m recipients
CONTACT FOR INVESTORS::
Magdalena Komaracka, CFA, IR Director
Piotr Wiśniewski, IR Manager
+48 22 582 22 93 | mkomaracka@pzu.pl |
+48 22 582 26 23 | pwisniewski@pzu.pl |
ANNOTATION:
- aROE in 1Q23 attributable to equity holders of the parent company, annualized, return on equity excluding the cumulative effect of changes in discount rates for the valuation of insurance liabilities; 2) Non-lifeinsurance in the PZU Group (Poland); 3) Margin for the group and individually continued insurance segment; 4) Ratio calculated as dividend (according to the year in which the right was established) compared to share price as at the end of the previous reporting year; 5) In 2013, the dividend was paid out from the excess capitals (PLN 2 per share); 6) Adjusted return on equity (aROE %). Calculated on the equity basis excluding other comprehensive income from insurance operations (being the impact of changes in the macroeconomic environment on the PZU Group's capital base).; 7) PZU Group's gross insurance revenue;
- Net profit attributable to the equity holders of the parent company; 9) With the exception of the rules included in the circular letter of the KNF to insurance companies dated 16.04.2021; 10) External client assets under management of TFI PZU, Pekao TFI and Alior TFI; 11) Climate neutrality in PZU and PZU Życie in terms of emissions unders scope 1 and scope 2
PZU SA
rondo Ignacego Daszyńskiego 4 00-843 Warszawa
ir@pzu.pl
www.pzu.pl/ri
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PZU - Powszechny Zaklad Ubezpieczen SA published this content on 04 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 July 2023 09:57:09 UTC.