PZU, 3Q2017: Improved profitability despite the financial cost of the nat cat events of the summer
The net profit rose to PLN 700 million, a figure slightly exceeding the analysts' expectations, of PLN 668 million. GWP rose by about 10% y-o-y, to PLN 5.33 billion from 4.84 billion zlotys a year earlier.
At the PZU Greoup level, the key results may be resumed as follows:
- Increase of GWP by 15.1% y / y to PLN 16.9 billion.
- Increase of market share in Poland in non-life insurance business by 0.8 p.p. y-o-y to 36.9% and in life insurance with a contribution of 0.7pp. y-o-y to 45.7% (end of June 2017).
- High cost discipline. Decrease in administrative costs of insurance companies of the PZU Group in Poland by 1.1 p.p. y-o-y to 6.6%.
- Maintaining high profitability in property insurance in Poland, despite the occurrence of mass damage. Improvement of the mixed indicator by 5.4 p. y-o-y to 90.1%.
- The increase in life insurance profitability in group policies and individually continued in Q3 to 25.9% (compared to 24.5% in Q2 2017), increasing from the beginning of the year to 21.4%.
- Double the profit. PZU Group's net profit increased to PLN 3bn compared to PLN 1.5 billion after Q3 2016 and net profit to PLN 2.1 billion as compared to PLN 1.3 billion after Q3 2016.
- ROE above 21%. The "ROE" return on equity for the parent company was 21.3% compared to 13.8% after the third quarter of 2016.
The key results of the Polish group may be found in the Group's financial results presentation provided on November 15.