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Chairperson of the Supervisory Board Statement

Aleksandra Magaczewska

Dear All, 2014 was another year in PZU Group’s history which saw its leadership in the dynamic domestic and regional insurance market. The past 12 months were also the final stage of the realization of PZU 2.0 strategy assumed for the years 2012- 2014 and crowned with success.

The year 2014, was demanding for business operation, because insurance companies were experiencing not just the pressure of the changing economic conditions, but also were preparing for the implementation of the Solvency II directive’s requirements which will come into force on 1st January 2016.

Additionaly, the price war also played a considerable role which affected the premium level and profitability of motor insurance, low interest rate environment, and growth of claims and benefits for the insured.

Despite these conditions, PZU Group was able to produce a profit similar to that of the previous year and increase the gross written premium from 2013 by PLN 400 million.

PZU Group’s financial results in the last year were considerably affected particularly by the declined profitability in the mass and corporate insurance segment and the simultaneous increase in the profitability of the group and individually continued insurance, as well as the higher investment net result.

At this point, I am pleased to inform you that 16 million Polish customers used the Group’s services last year. Considering the fact that a statistical Pole continues to spend on insurance five times less than an average European, the insurance industry in our country has great perspectives.

The shareholders were surely glad to learn that PZU and PZU Życie retained their high rating awarded by Standard & Poor’s.

The granted “A” category for stable perspectives confirm the excellent financial conditions of both entities.

I would like to thank the Management Boards and employees of PZU Group for their vision, commitment, and effective work which build the measurable value of the PZU brand. We hope that the first signs of economic improvement that appeared in 2014 will continue this year. This concerns GDP growth, dropping unemployment, or household consumption. This will create even better conditions for the development of all PZU Group businesses. I am convinced that the foundations established over the recent years will allow for the effective realisation of the new PZU 3.0 strategy. And that is what I wish us all in 2015.

Yours faithfully,

Aleksandra Magaczewska

Chairperson of the Supervisory Board of PZU