Powszechny Zakład Ubezpieczeń (PZU) Q3 2024 earnings summary

Executive summary

• Revenue reached nearly PLN 22 billion, up PLN 1.9 billion year-over-year, with strong growth in health (11–19%), non-motor (15–18.8%), and motor insurance (9%).

• Net profit attributable to parent company shareholders was PLN 3,661 million for the first nine months, with aROE at 16.8%.

• Profitability for the first three quarters was PLN 3.7 billion, with AROE close to 17%.

• Strong capital position and solvency ratio at 233%, well above market average.

• Floods and weather events significantly impacted results, but operational agility and customer satisfaction improved.

Financial highlights

• Insurance revenue rose to PLN 21,836 million, up 9.4% year-over-year.

• Gross written premium increased by almost 10% in Q3; non-motor insurance up 14–18.8%, corporate insurance up nearly 13%.

• Health insurance revenue rose by nearly 19%, mainly due to price increases.

• Investment assets managed grew over 30% year-over-year, reaching PLN 64.2 billion.

• Bank assets reached almost PLN 494 billion, with Pekao S.A. and Alior Bank performing above market consensus.

Outlook and guidance

• New strategy to be announced in December 2024, focusing on asset structure, operational model, and core business objectives.

• Strategic goals for FY2024 include gross insurance revenue over PLN 28 billion, net profit PLN 4.3 billion, and aROE of 15.5%.

• Price increases in motor insurance (8% in TPL) are expected to improve profitability, but effects will be seen in future quarters.

• Market expects rational price adjustments in 2025, with no dramatic margin jumps.

• PZU Group aims to maintain a solvency ratio above 200% and financial leverage below 25%.