PZU, 1H2017: Doubled net profit, thanks to lower claims and improved efficiency on the motor insurance lines

PZU Group's consolidated net profit went up y-o-y by 119%, to PLN 1,733 million (IFRS calculations) in 1H2017, while the growth achieved in underwriting was of 17.7%, to PLN 11.6 billion.

The parent company, leader of the Polish insurance market, recorded a net profit of PLN 1.45 billion, also 119% higher than the 1H2016 figure.

According to the Group's statements today, in non-life insurance, the higher profitability was achieved thanks to a considerably lower level of claims and benefits y/y in the agricultural insurance portfolio - in the corresponding period of 2016 there were many mass losses (adverse effects of ground frost) -, as well as due to an enhanced profitability of the motor insurance portfolio.

The life insurance portfolio saw an enhanced profitability in Q2 as the return to loss ratios on protection products at the levels observed in the corresponding period of the previous year was recorded, following robust growth at the outset of the year constituting the outcome of the higher number of deaths compared to last year and the number of benefits paid as a result. This uptick was justified by the higher number of deaths in the overall population of Poland at the outset of the year as the data published by the Central Statistical Office depict.

The international subsidiaries of PZU have also recorded positive results: on the Baltic States market all companies have reported sales growth, totaling +15.0% in non-life insurance and +16.7% in life insurance; sales growth in the Ukraine segment totaling +8.5%. Profitability improved in the Baltic States thanks to the rate hike in motor insurance in the region.

The 1H2017 results of PZU are available in a synthetic presentation here.

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