01. Non-life insurance - Poland
PZU: Gross written premium (according to IFRS) at PLN 8,261.8 milion, i.e. decrease of 0.1% in relation to 2013. Decline in MTPL premium and considerable increase in non-motor
Leader on the Polish non-life insurance market with share of 31.4%, on the motor insurance market (after three quarters of 2014) - 34,7%. Visible growing tendency of market shares following the second and third quarters of 2014.
Introduction of a modified non-motor TPL and household insurance offer (All Risk formula).
Link4: Gross written premium PLN 417.1 million (including contribution to the result of PZU Group at PLN 138.8 million) from the moment of acquisition.
Market share of 1.6% (after three quarters of 2014).
02. Life insurance - Poland
Gross written premium (according to IFRS) at PLN 7,807.7 million. Increase by 0.8% in relation to 2013 in the conditions of declining single premium (by 6.6%). Withdrawal of the Plan na Życie savings product with a protection component and regular premium and the MegaZysk and Polisa Oszczędnościowa single premium insurance constituting investment contracts.
Life insurance market share of 29.1%, including 42.9% in regular premiums (after three quarters of 2014).
Stable growth in group and individually continued premiums of 1.9% y/y, because of an increasing number of insured, as well as a rise in the average premium, additionally supported by additional sales of profitable riders.
Introduction of the additional rider PZU Pomoc od Serca to individual protection insurance and the Cztery Pory Roku group medicine insurance.
03. Investment funds
Net asset value of PLN 25.5 billion at the end of 2014 – annual increase of PLN 3.3 billion.
External clients’ assets value of PLN 6.0 billion, annual net increase of PLN 1.7 billion.
Maintaining the position of the leader with a TFI market share of 12.2% (share growth of 0.5 p.p.).
Maintaining the leading position on the market of Employee Pension Programmes, registration of ten new and acquisition of five EPPs.
04. Pension funds
Third place on the market with a share of 13.1% by net asset value.
Maintenance of the position of leader on the Individual Pension Security Accounts (IKZE) market among the voluntary pension funds.
05. Health care
Setting-up of own health care chain and purchase of shares in Elvita Jaworzno III (one of southern Poland’s biggest chain of cutting edge medical offices), ORLEN Medica, and Specjalistyczna Przychodnia Przemysłowa Prof-Med.
Cooperation with approximately 1,380 health care centres (compared to 1,050 at the end of 2013).
Providing general health care services for the population of Płock, Włocławek, and Upper Silesia in scope of contracts with NFZ (National Health Fund).
Offering health care to the Tauron Group and the PKN Orlen Group and sanatorium care in Ciechocinek and Ustroń.
06. Foreign operations
Firm strengthening of the insurance position in Central and Eastern Europe resulting from the acquisition of new entities: Lietuvos Draudimas AB (Lithuania), AAS Balta (Latvia) and Codan Forsikring A/S (Estonia).
Lithuania: In 2014, PZU Lithuania collected premiums in amount of 53.3 million EUR (third on the market with share of 13.8%). The acquired Lietuvos Draudimas AB held a 30.9% market share (the entity enters PZU Group in the end of 2014). According to the recommendations of the Lithuanian authority, on 2nd February of 2015 PZU Group entered a conditional agreement for the sale of PZU Lithuania to the Norwegian insurance company Gjensidige Forsikring ASA. In 2014, PZU Lithuania Life collected premiums in amount of EUR 8.9 million (4.1% share in the life insurance market).
Latvia: In 2014, PZU Group operated through the PZU Lithuania branch and AAS Balta, which entered the Group in June of 2014. In 2014, the share of AAS Balta in non-life insurance market was 22.9%. The total gross written premium of both entities was EUR 61.2 million. From the time it joined PZU Group, ASS Balta generated the gross written premium of EUR 28.9 million.
Estonia: The Group operates through the PZU Lietuva branch created from the merger of the branch of Lithuanian PZU entity and the acquired Codan Forsikring A/S branch. In 2014, the share of both entities in the non-life insurance market was 14.5%. The written premium collected by the newly acquired branch from the time of its acquisitions is EUR 5.3 million.
Ukraine: As the gross non-life premium has generally decreased, PZU Group collected premiums of UAH 503.9 million (growth of 24.7%). The reasons for the increased premium included the growing confidence in foreign insurance companies. After 3 quarters of 2014, PZU Ukraine held the approximate share of 4.2% of the non-life insurance market. The gross premium collected by PZU Ukraine Life amounted to UAH 154.3 million and was 28.7% higher than in 2013. The company was placed sixth on the market with a share of 7.3%.
Completed stage I of implementing the new Everest IT system for non-life insurance policies. Providing the system to 17.5 thousand end users.
Offering a direct claims handling system.
Setting up of own fleet of replacement cars composed of 300 hybrid vehicles.
Establishment of the Assistance to victims of accidents (Organizatorzy Pomocy Poszkodowanym w Wypadkach).
Acquisition of 1.7 thousand new tied agents.
08 Human resources management
At the end of 2014, employment of approximately 16.1 thousand employees calculated as FTEs. Employment increase by 18.7% during the year due to the Group’s expansion.
Employment restructuring in PZU and PZU Życie.
Introduction of PZU’s bonus system WOW (Wynik-Ocena-Wartości - Result-Appraisal-Values).
Extensive employee training programme. Every employee benefited from an average of 24 hours of onsite training and 7 hours of e-learning in 2014.
09 Financial results and safety of operations
Net profit at PLN 2,967.6 million, i.e. 9.9% lower than in 2013, mainly due to the rise of paid claims and benefits.
Return on equity 22.6% – a decline of 1.5 p.p. compared with 2013.
Dividend payment from 2013 PZU profit at PLN 4,663.0 million, including PLN 1,727.0 million from surplus capital.
Issue of five-year Eurobonds for EUR 500 million.
Purchase of four logistics parks located in Łódź, Gdańsk, and Wrocław for EUR 140 million.
Maintenance of solvency ratios which are higher than the average for the sector.