Powszechny Zakład Ubezpieczeń (PZU) Q4 2025 earnings summary

Executive summary

• Achieved record-high results in 2025, with premium income of nearly PLN 31 billion and net profit attributable to equity holders of PLN 6.7 billion, up 25% year-over-year, with ROE exceeding 20% and a dividend payout of PLN 4.47 per share.

• Solvency II ratio reached 234%, well above the European average, indicating a strong capital position.

• Strategic focus on digitalization, AI, expanding health and non-motor insurance, and ESG initiatives.

• Dividend policy remains a priority, with attractive payouts and optimistic outlook for future dividends.

Financial highlights

• Net profit attributable to equity holders was PLN 6,699 million, with EPS of PLN 7.76; insurance contributed PLN 4.5 billion, banking PLN 2.2 billion.

• Insurance revenue increased to PLN 30,882 million, up 5% year-over-year.

• Combined ratio at 86.2%, contractual/operating margin over 27%, and investment portfolio profitability at 5.4%.

• Dividend payout of PLN 4.47 per share, with a payout ratio of 80% of attributable profit.

• Administrative and distribution costs increased, partly due to salary reviews and higher non-motor insurance share.

Outlook and guidance

• Confident in delivering on 2027 KPIs: gross insurance revenue > PLN 36 billion, net profit > PLN 6.2 billion, ROE > 19%, combined ratio < 90%.

• Solvency ratio for 2026 targeted at 190%-200% under new regime, assuming no major adverse events.

• Market expected to grow 6%-7% in 2026, with non-motor insurance outpacing motor.

• Internal risk model validation and group reorganization anticipated by 2027.

• Capital and dividend policy emphasizes effective capital management, organic growth, and strategic acquisitions.