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.

Related articles

SCOR completes the acquisition of MutRe

French reinsurer SCOR said it has successfully completed its 100% acquisition of mutual reinsurer - MutRe S.A. SCOR has been a 33% shareholder and a major technical and commercial partner of MutRe since the company was created in 1998.

2018-01-17

A.M. Best affirms credit ratings of AXA Global Re

A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of "aa-" of AXA Global Re (AGRe) (France). The outlook of these Credit Ratings (ratings) remains stable.

2018-01-11

ERGO sells three legal insurance subsidiaries to ALLIANZ

ERGO Group - part of German MUNICH Re, said it has sold its legal protection insurance subsidiary DAS Switzerland and the assets of DAS Luxembourg and Slovakia to ALLIANZ Group. The combined premium income from the three ERGO subsidiaries totaled EUR 38 million in 2016.

2018-01-11

ON THE MOVE

JLT Re appoints Jeremy FOX as Asia-Pacific CEO

Global reinsurance broker JLT Re announced the appointment of Jeremy FOX to the position of Chief Executive Officer (CEO) of JLT Re's Asia-Pacific unit (APAC). He will also become a member of the Reinsurance Global Executive Committee.

SAVA Re adds new member of the management board

Slovenian re/insurer SAVA Re annoucend that the appointment of Polona Pirs ZUPANCIC as member of the management board has got the Insurance Supervision Agency's (ISA) approval. She started her term of office on 14 January 2018.

TOP EVENT

"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

22.11.2017

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

See all