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Introduction & Market Context
Powszechny Zaklad Ubezpieczen SA (WSE:PZU) presented its financial results for the first half and second quarter of 2025 on August 28, showcasing substantial profit growth and progress on its strategic initiatives. The Polish insurance giant reported a 32.1% year-over-year increase in net profit, reaching PLN 3.23 billion for the first half of 2025, with particularly strong performance in its core insurance segment.
The presentation highlighted PZU’s continued focus on diversifying its business mix, with notable growth in non-motor insurance, health services, and asset management, while maintaining a strong capital position with a Solvency II ratio of 225%.
Quarterly Performance Highlights
PZU Group delivered impressive financial results in the first half of 2025, with the insurance segment driving overall performance. The company’s net profit increased by 32.1% year-over-year to PLN 3.23 billion, with the insurance segment contributing PLN 2.21 billion (up 50% from 1H24) and the banking segment adding PLN 1.02 billion (up 5%).
As shown in the following chart detailing the company’s profit growth:
The insurance service result grew to PLN 2.16 billion (compared to PLN 1.60 billion in 1H24), while the investment portfolio generated PLN 1.41 billion (up from PLN 1.24 billion). Key profitability metrics also improved, with the adjusted return on equity (AROE) reaching 21.2%, operating margin increasing to 26.1% (from 24.5%), and the combined ratio improving to 87.9% (from 92.5%).
The company’s revenue from insurance services reached PLN 15.2 billion in 1H25, representing a PLN 0.9 billion increase year-over-year. This growth was supported by the company’s strong capital position and attractive dividend policy, with a dividend per share of PLN 4.47 yielding approximately 7%.
The following slide illustrates PZU’s key financial metrics:
Strategic Initiatives
PZU’s strategic focus on diversifying beyond traditional motor insurance is yielding results, with non-motor insurance revenue increasing by 11.4% year-over-year to PLN 4.2 billion. The company reported that growth was particularly strong in third-party liability (TPL) insurance within the mass insurance segment, which grew by 8.4% year-over-year.
The company’s individual protection insurance business showed impressive growth, with revenue increasing by 12.4% year-over-year to PLN 407 million. Even more notable was the 36% year-over-year growth in individual insurance premiums.
As illustrated in the following chart, PZU has achieved significant growth across its complementary offerings:
The health segment continues to be a key growth driver, with revenue increasing by 14.2% year-over-year to PLN 1.05 billion. The company expanded its healthcare network with a new medical center in Poznan and a new diagnostic imaging lab in the Mazowieckie Voivodeship, while also introducing VIP occupational medicine services and new travel insurance offerings.
Asset management remains another strategic focus area, with assets under management for external clients growing by 18.8% year-over-year to PLN 72.5 billion. PZU’s asset management business has maintained its position as the #1 "non-bank TFI" with over PLN 1 billion in inflows, capturing 9.2% of market inflows to funds.
The following chart shows the growth in assets under management:
Bancassurance has also performed strongly, with premiums raised through cooperation with PZU Group banks increasing by nearly 20% year-over-year to PLN 669 million in Q2 2025. This growth was driven by high sales of products with guaranteed rates of return, stable unit-linked product sales, and increased cross-selling of insurance products with banking services.
The following chart illustrates the growth in bancassurance premiums:
Financial Strength
PZU maintains a strong capital position, with a Solvency II ratio of 225% as of March 31, 2025, significantly above the European insurer average of 214%. This solid foundation is supported by the company’s conservative investment approach, with 80% of its portfolio allocated to bonds (65% in sovereign bonds) and effective reinsurance protection.
The company’s financial strength is further evidenced by its "A - Positive" credit rating from S&P Global Ratings, reflecting its dominant market position and prudent risk management.
As shown in the following chart, PZU’s solvency ratio has consistently remained above 200%:
This strong capital position enables PZU to pursue its growth strategy while maintaining an attractive dividend policy, with a dividend per share of PLN 4.47 yielding approximately 7%.
Forward-Looking Statements
PZU outlined its strategic goals for 2025-2027, targeting gross insurance revenue exceeding PLN 36 billion, net profit above PLN 6.2 billion, and maintaining a Solvency II ratio above 190%. The company aims to achieve a return on equity exceeding 19%, earnings per share above PLN 5.1, and dividends per share above PLN 4.5.
Other key targets include maintaining a combined ratio below 90%, an operating margin above 20%, growing health pillar revenue to over PLN 3 billion, and increasing assets of external clients of TFI PZU to over PLN 49 billion.
The following slide details PZU’s strategic goals through 2027:
These targets reflect PZU’s continued focus on profitable growth across its diversified business segments, leveraging its strong market position and financial strength to create value for shareholders while expanding its product and service offerings.
Full presentation:
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