Capital management

In accordance with the Policy, the PZU Group endeavors to do the following:

• manage capital effectively by optimizing the usage of capital from the Group’s perspective;

• maximize the rate of return on equity for the parent company’s shareholders, in particular by maintaining the level of security and retaining capital resources for strategic growth objectives through organic growth and acquisitions;
• ensure sufficient financial means to cover the Group’s liabilities to its clients.

The capital management policy rests on the following principles:

• manage the PZU Group’s capital (including excess capital) at the level of PZU;
• sustain target solvency ratios at the level of 200% for the PZU Group, PZU SA and PZU Życie SA (according to Solvency II);

• ensure funds for growth and acquisitions;
• maintain the financial conglomerate’s surplus own funds above the pertinent requirements for solvency;
• PZU will not issue any new shares for the duration of this Policy.