1. Financial results and safety of operations
Net profit at PLN 2,342.2 million, i.e. 21.1% lower than in 2014, mainly due to the lower income from investments and decreased insurance profitability.
Return on equity (attributable to parent company) – 18.0% – a decline of 4.6 p.p. compared with 2014.
Maintenance of solvency ratios which are higher than the average for the sector. The Solvency II ratio calculated at the end of September 2015 according to the standard formula was 296.1%.
Debt ratio at 22.6%.
Dividend payment from 2014 PZU profit at PLN 2,590.6 million, i.e. PLN 30.00 per share (pre-split).
Stock split in 1:10 relation, i.e. from PLN 1 to PLN 0.10 and increase of PZU shares composing share capital to 863,523,000 with no change to the share capital.
2. Non-life insurance - Poland
PZU: Gross written premium (according to IFRS) at PLN 8,858.0 million, a 7.2% raise in relation to 2014. Growth of premium in motor insurance resulting from active reinsurance agreements concluded with newly acquired subsidiaries.
Leader on the Polish non-life insurance market with share of 31.2% (after 3 quarters of 2015).
Market leader with a share of 35.6%* on the motor insurance market (after 3 quarters of 2015).
Link4: Gross written premium PLN 493.2 million (including contribution to the result of PZU Group at PLN 138.8 million in 2014 from the moment of acquisition).
Market share of 1.9% (after three quarters of 2015).
TUW PZUW: Establishment of Towarzystwo Ubezpieczeń Wzajemnych - TUW PZUW.
*PZU share calculated with consideration of active reinsurance of PZU towards Link4
3. Life insurance - Poland
Gross written premium (according to IFRS) at PLN 7,922.9 million. Increase by 1.5% in relation to 2014 in the conditions of declining single premium (by 8.0%). High sales of protection (both group and individual) and group health products offset by lower sales of investment products mainly in the bank channel.
Life insurance market share of 29.1%, including year-on-year growth of 1 p.p. in regular premiums to 43.9% (after three quarters of 2015).
Stable high profitability level exceeding the strategic objective despite pressure from higher death rate in 2015.
4. Investment funds
Net asset value of PLN 28.3 billion at the end of 2015 – annual increase of PLN 2.8 billion. External clients’ assets value of PLN 6.8 billion, annual net increase of PLN 0.8 billion.
Second place on the market in volume of gathered assets at the end of December with 11.2% share.
Maintenance of the position of leader on the market of Employee Pension Programs with total net assets of PLN 3.2 billion. At the end of December 2015 TFI PZU handles the total of 117 programs for 119 thousand people.
5. Pension funds
Maintenance of the third place on the market in both members (the fund had 2,208.4 thousand members for a market share of 13.4%) and net asset value (NAV of PLN 18.5 billion, i.e. 13.2% market share).
Generation of the highest rate of return among all Pension Funds in 2015.
Acquisition of Nordea DFE approved by PFSA.
Maintenance of the position of leader on the Individual Pension Security Accounts (IKZE) market among the voluntary pension funds as far as the number of participants is concerned.
6. Health care
Cooperation with approximately 1580 health care centers (compared to 1,380 at the end of 2014).
Investments in new ambulatories.
A 46% increase in gross written premium in medical insurance compared to 2014.
7. Foreign operations
Strengthening of the insurance position in Central and Eastern Europe resulting from the acquisition of the following entities in the previous year: Lietuvos Draudimas (Lithuania), Balta (Latvia) and Codan Forsikring branch (Estonia).
Lithuania: From November 2014, PZU Group has been operating on the Lithuanian non- life insurance market through Lietuvos Draudimas – the market leader. The acquisition of Lietuvos Draudimas was conditioned by the sale of PZU Lithuania – the disinvestment took place on 30 September 2015. In 2015, Lietuvos Draudimas recorded a growth of the gross written premium by 6.8% from the previous year and reached the level of EUR 127.2 million. PZU Lithuania Life collected premiums in the amount of EUR 10.3 million (4.4% share in the life insurance market).
Latvia: In 2015, PZU Group conducted business through AAS Balta – leader on the market, which entered the Group in June 2014 and, subsequently, acquired the PZU Lithuania branch operating on the Latvian market since 2012 (in May 2015). The share of both companies in the Latvian non-life insurance market reached 25.1% at the end of the third quarter of 2015. The total gross written premium of both entities in 2015 was EUR 67.1 million.
Estonia: The entity is conducting business through the Estonian branch of Lietuvos Draudimas established through the merger of two entities – the branch of PZU Lithuania, registered in 2012, and the Estonian branch, acquired in 2014, which was operating under the Codan brand. The share in the Estonian non-life insurance market was 13.8%. The acquired written premium was EUR 38.6 million.
Ukraine: The premium gathered by PZU Group on the Ukrainian market of non-life insurance amounted to UAH 798.9 million and was 58.5% higher than in the previous year. The reasons for the increased premium included growing confidence in foreign insurance companies. The gross premium collected by PZU Ukraine Life amounted to UAH 177.8 million and was 15.2% higher than in the previous year.
PLN 1,739.3 million net result on investing activities of– lower by 34.3% compared to 2014 due to the decline in the price of debt instruments (higher yield).
Capital investment in Alior Bank – purchase of 25.19% shares of the bank and launch of consolidation on 18 December 2015.
Issue of Eurobonds for EUR 350 million with maturity date of July 2019.
Completed stage I of implementing the new Everest IT system for non-life insurance policies. Providing the system to almost 18 thousand target users.
Launch of direct claims handling for PIU settlements.
Setting up own fleet of replacement cars used for claims handling purposes composed of 300 hybrid vehicles.
10. Human resources management
Average annual employment of approximately 16.8 thousand employees calculated as FTEs. (excluding Alior Bank employees).
Employment restructuring in PZU and PZU Życie.
VI place in the Employer of the Year ranking organized by AIESEC.
Implementation of the Innovation Strategy – promotion of pro-innovation cultural models.
Extensive training and development program for employees - SmartUp, TalentUp, MBA.