Premiums

In 2022, the PZU Group collected gross premiums of PLN 26,710 million, i.e. up 6.5% (PLN 1,630 million) compared to 2021.

The change in gross written premium (net of intersegment premiums) was affected primarily by:

  • increase in the written premium in the corporate client segment by PLN 755 million (+23.6%, to PLN 3,954 million), including insurance against fire and other damage to property, as a result of renewal of a long-term high-value contract, and increased premium written from a contract with a fuel and energy client;
  • increase by PLN 654 million (+6.0% y/y, to PLN 11,549 million) in sales in the mass client segment in Poland – including, chiefly MOD insurance driven by a high number of insurances with the simultaneous increase in the average premium, natural catastrophe insurance and other property damage insurance, chiefly as a result of higher sales of subsidized crop insurance (as a result of the subsidy pool from the state budget greater than the year before), insurance of buildings and real properties;
  • increase by PLN 492 million (+26.4% y/y, to PLN 2,359 million) in sales in the Baltic companies, chiefly property insurance, MOD insurance and health insurance;
  • increase by PLN 136 million (+1.9% y/y, to PLN 7,166 million) in sales of group and individually continued insurance – in particular health insurance in group or continued form, and active up-selling of other insurance riders in individually continued products;
  • decrease by PLN 299 million (-17.1% y/y, up to PLN 1,451 million) of the written premium in the individual life insurance segment ,including bancassurance investment products, as a result of limiting collaboration with one of the external distributors with a downward trend in sales dynamics of products offered in cooperation with PZU Group banks.

Net revenues from commissions and fees

In 2022, net revenues from commissions and fees amounted to PLN 3,687 million, and were by PLN 143 million, i.e. 4.0%, higher than the year before.

The revenues included primarily:

  • net revenues from commissions and fees in the banking business of PLN 3,159 million, up PLN 248 million, or 8.5%, as compared to last year; included mainly: brokers’ commissions, revenues and expenses related tothe services linked to bank accounts and payment and credit cards, as well as fees charged for intermediation in insurance sales;
  • revenue form pension insurance – of PLN 161 million, up PLN 7 million, or 4.5%, as compared to the previous year; the increase was applicable to revenues from the overpayment to the Insurance Guarantee Fund of the National Depository for Securities (Krajowy Depozyt Papierów Wartościowych, “KDPW”) (no revenues on this account was recorded in 2021);
  • revenues and fees received from funds and mutual fund management companies – of PLN 363 million, down PLN 111 million, or 23.4%, as compared to 2021.

Net investment result and interest expenses

The net investment result, after factoring in interest expenses, net of data from Pekao and Alior Bank, was lower in 2022 than in the corresponding period of the previous year, chiefly due to the following factors:

  • last year’s increased valuation of shares in a logistics company following its IPO;
  • weaker result of Private Equity funds due to a downturn on the technological market;
  • a decrease in the results on investment activities on the asset portfolio held to cover the investment products alone do not affect the PZU Group’s overall net result, because they are offset by the movement in net insurance claims and benefits.

The above drops were partially offset with higher portfolio results:

  • Polish variable coupon corporate debt as a result of rising interest rates;
  • liquidity caused by higher interest rates;
  • foreign sovereign bonds due to higher swap points on hedging instruments;
  • real estate due to higher rental income and swap points on hedging instruments;
  • Polish sovereign inflation bonds and variable coupon bonds.
XLS

Insurance segment (PLN million), local accounting standards Gross written premium (external)
1 January – 31 December 2018 1 January – 31 December 2019 1 January – 31 December 2020 1 January – 31 December 2021 1 January – 31 December 2022
TOTAL 23,470 24,191 23,866 25,080 26,710
Total non-life insurance – Poland (external written premium) 13,384 13,596 13,162 14,094 15,503
Mass insurance – Poland 10,325 10,332 10,200 10,895 11,549
MTPL insurance 4,610 4,383 4,205 4,199 4,257
MOD insurance 2,524 2,572 2,513 2,688 3,090
Other products 3,191 3,377 3,482 4,008 4,202
Corporate insurance – Poland 3,059 3,264 2,962 3,199 3,954
MTPL insurance 845 814 677 645 620
MOD insurance 878 827 669 718 809
Other products 1,336 1,623 1,616 1,836 2,525
Total life insurance – Poland 8,237 8,546 8,719 8,780 8,617
Group insurance and individually continued insurance – Poland 6,891 6,966 7,007 7,030 7,166
Individual insurance – Poland 1,346 1,581 1,712 1,750 1,451
Total non-life insurance – Ukraine and Baltic States 1,729 1,897 1,827 2,026 2,437
Ukraine – non-life insurance 202 256 214 249 176
Baltic States – non-life insurance 1,527 1,641 1,613 1,777 2,261
Total life insurance – Ukraine and Baltic States 120 151 158 180 153
Ukraine – life insurance 55 79 77 90 55
Baltic States – life insurance 65 72 81 90 98

Result on other operating income and expenses

In 2022, the balance of other operating income and expenses was negative and stood at PLN 3,750 million, compared to the also negative balance of PLN 2,315 million in 2021. The balance change was caused by the following factors:

  • the accession of Alior Bank and Pekao to the Bank Protection System, which resulted in a contribution to the aid fund of PLN 214 million and PLN 482 million, respectively;
  • contribution to the Borrower Support Fund in the amount of PLN 231 million;
  • higher levy on financial institutions, which in the case of PZU Group (insurance and banking activity together) increased from PLN 1,290 million in 2021 to PLN 1,452 million in 2022, owing to the higher burden was attributable in particular to banking activity and resulted from the increase in value of assets forming the taxable base (the rate of the levy did not change);
  • provisions set up by Alior Bank and Pekao for refund of increased margins on mortgage loans prior to the establishment of the mortgage, in the total amount of PLN 135 million;
  • updating the provision for legal risk related to foreign currency mortgage loans at Pekao in the gross amount of PLN 352 million.
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