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PZU on the capital and debt market

IPO of PZU on the Warsaw Stock Exchange on 12th May 2010 and since its debut it has been included in the WIG20 index. The value of the public offer was almost 8.1 billion PLN and was the largest IPO not only in the history of the Polish capital market, but also in Central and Eastern Europe since the beginning of the economic transformations.

The Capital Group of Powszechny Zakład Ubezpieczeń SA (PZU Group) is one of the largest financial institutions in Poland and in Central and Eastern Europe. It is headed by a Polish insurance company, PZU SA (PZU, Issuer).

PZU Group is the leader in both non-life and life insurance on the Polish market. Innovativeness, ethics in operation and adaptation to the increasingly demanding market conditions  constitute the basis for PZU’s rapid expansion. The year 2014 saw a clear growing trend of PZU in the non-life insurance sector thanks to the changes made to customer service and the implementation of new solutions. Furthermore, PZU is planning on reaching a wider scope of clients thanks to its acquisition of the leader of the direct insurance market, i.e. Link4 – thus through the use of two brands.

PZU Group is also an important player on other segments of the Polish financial market, such as investment fund companies, open pension funds, and employee pension plans.

PZU Group is also expanding its operations in health care. Other than the health insurance offer, the clients can also take advantage of PZU Group’s own health care centres and a chain of partner centres (approximately 1,380 in total).

From year to year, PZU Group is expanding its operations in Central and Eastern Europe. In 2014, the Group became the leader of the non-life insurance market in Lithuania and Latvia thanks to the acquisition of large local insurance companies. The organic development also strengthened its position on the fragmented Ukrainian insurance market.

PZU on the capital and debt market

The event, which became an additional catalyst for change and PZU’s offensive turn towards modernity, was its IPO in 2010. The value of the public offer was almost 8.1 billion PLN and was the largest IPO:

  • in the history of the Polish capital market,
  • in Central and Eastern Europe since the beginning of the economic transformations,
  •  throughout the whole of Europe since 2007.

PZU’s shares have ended up on the accounts of 250 thousand individual investors.

PZU’s strategic investor is the State Treasury, which, at the end of 2014, held a 35.2% share of the Issuer’s share capital.

PZU shareholders’ structure as of 31.12.2014

Shareholder who bought shares in PZU’s initial public offering saw the value of their investment grow by 101.3% as at the end of 2014.

PZU has been distributing the profit generated to its shareholders since the start of its quotation. The company has a clearly defined dividend policy. The main objective of PZU Group’s Capital and Dividend Policy for the Years 2013–2015, which was adopted in August 2013 and updated in May 2014, is to reduce the cost of capital by optimizing the balance sheet structure through the conversion of equity to cheaper external capital, while maintaining a high level of security and development funding.

The dividends paid out of the profits for 2010–2013 gave PZU’s shareholders high dividend yields compared with other large stock market companies. A shareholder who acquired PZU’s shares from the IPO in May 2010 increased his investment by 101.3% by the end of 2014.

In 2014, PZU Group released bonds in the amount of EUR 500 million in scope of optimising the financing and currency structures.