Slides
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PZU Group’s financial results Warsaw, 15 May 2025 in 1Q25
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Contents Main achievements and plans Business development in 1Q25 Financial results in 1Q25 PZU Group Strategy 2025–2027 Annexes 3 9 15 27 29
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Scale-up, high profitability and strong capital position 4 1. Main achievements and plans 2. Business development in 1Q25 3. Results in 1Q25 4. Strategy 5. Annexes 4 Profitability Capital position Revenues 1Q25 1Q25 2024 PLN 7.5 bn Insurance revenue Net profit1 Solvency II ratio PZU SA 240% 1. Attributable to equity holders of the parent company. 2. According to the Management Board's proposal to the Shareholder Meeting as of 6 May 2025 PLN +0.5 bn y/y PLN 1.8 bn aROE 22.4% PZU Group 226% Dividend Dividend per share2 dividend yield ~ 8% PLN 4.47 2025
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0% 100% 200% 300% 400% 500% .. PZU rate of return (TR2 total return) from 12.05.2010 (IPO) to 12.05.2025 Dividend paid per share (PLN) 1.09 2.60 3.50 2.24 2.97 1.70 2.40 1.70 3.00 2.08 1.40 2.50 2.80 1.94 2.00 +400% +300% +200% +100% - PZU TR +365% WIG +147% . . . .. . . . . . . . .4.34 . 1) Raport bieżący 16/2025 - wniosek Zarządu PZU SA do Walnego Zgromadzenia PZU SA w sprawie podziału zysku za rok 2024 powiększonego o kwotę przeniesioną z kapitału zapasowego utworzonego z zysku za rok 2023 2) TR – stopa zwrotu wyliczona na bazie kursu akcji PZU skorygowanego o wypłacone dywidendy . 5 Dividends per share PLN 4.47 Record date 25.09.2025 Disbursement of dividends 16.10.2025 Dividend 20251 DPS PZU – 15 years on the Warsaw Stock Exchange 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 5 1) Current report 16/2025 - Motion of the Management Board of PZU SA to the Shareholder Meeting of PZU SA regarding the distribution of the profit generated in 2024 and the amount transferred from the supplementary capital created from the 2013 profit 2) TR – rate of return calculated based on the PZU share price adjusted for dividends paid
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Dynamic growth of results in 1Q25 6 Net profit (PLN m) 1Q25 1. Life insurance (Poland) 2. Non-life insurance in PZU Group (Poland) 3. aROE in 1Q25, attributable to owners of the parent company, return on equity excluding the cumulative effect of change in discount rates for valuation of insurance liabilities Insurance service result PLN 1,251 m (vs. 787 m in 1Q24) Result on investment portfolio PLN 733 m (vs. PLN 647 m in 1Q24) Operating margin1 24.2% (vs. 20.9% in 1Q24) Combined ratio2 82.5% (vs. 90.1% in 1Q24) aROE 22.4%3 757 497 493 1Q24 1Q25 Insurance Banks 1,254 1,760 1,267 +67.4% +40.4% 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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1Q24 1Q25 1.8 2.0 2.0 2.1 509 1Q24 1Q25 469 56,9 69,6 1Q24 1Q25 Insurance revenue Gross written premium Scale-up and development of complementary offerings 7 PLN 507.9 bn of assets +24.9 bn y/y PZU Group Premium and revenue from non-motor insurance (PLN bn) Health Pillar Revenue (PLN m) Assets of external clients of TFI PZU, Pekao TFI and Alior TFI (PLN bn) TFI PZU – #1 among “non-bank TFIs” PLN +1 bn in inflows Growing importance of remote service channels for patients Sales growth in insurance against fire and other damage to property Increase y/y +12.0% +3.2% Increase y/y +8.6% Increase y/y +22.4% 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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High rating and solid foundation for doing business 226% SII Solvency II ratio significantly over 200% • Solvency II for PZU Group at 226%1 • Average for European insurers is 213% 100% ≥ A Effective reinsurance protection • The reinsurance program to limit the impact of catastrophic events and others • 45% of PZU reinsurers with A rating2 and 55% with AA rating2 Dominant share of bonds in the investment portfolio • Bonds represent 84% of the investment portfolio, including 67% represented by sovereign bonds • Stability of return rates owing to the portfolio structure and long-term management strategy • Closed currency position >80% bonds A- POSITIVE Credit rating and financial strength rating 1. As at 31 December 2024 2. S&P/AM Best rating, as at 31.12.2024 8 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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Premium growth in product groups Non-motor insurance • Growth mainly in insurance of various financial risks in the corporate insurance segment, fire and other property damage insurance, as well as assistance insurance in the mass segment • In 1Q25, continued growth in mass insurance (+8.6% y/y), in the corporate segment seasonally lower premiums (PLN 0.7 bn), slightly lower y/y Motor insurance • Higher motor insurance sales (+1.8% y/y), mainly driver by an increase in average premiums • Premium growth in TPL (+2.6% y/y) as a result of higher average prices reflecting rising claims costs 10 1. Gross written premium – external 2. PZU, based on active policies, standardized ratio Gross written premium (PLN bn)1 and its dynamics (%, y/y) 1.33 1.22 2.02 1Q24 1.36 1.23 2.09 1Q25 4.57 4.68 +2.5% Non-motor MOD MTPL 2018 2019 2020 2021 2022 2023 2024 2025 MOD to TPL (%)Ratio of MOD to TPL policies (%)2 PZU Group in Poland PZU Group in Poland – non-motor insurance 1 2 1 2 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 1Q20 1Q21 1Q22 1Q23 1Q24 0.72 1.37 1Q25 Corporate (gross written premium) Mass (gross written premium) -5.8% y/y +8.6% y/y +11,2% y/y Corporate (insurance revenue)
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PZU Życie with stable 3% growth in the written premiums from group and individually continued insurance, acceleration of individual insurance growth (33% y/y) PZU Życie gross written premiums from group and individually continued insurance (PLN m) PZU Życie gross written premiums from individual insurance (PLN m) 11 1,788 1Q22 1,780 1,793 1,805 1,828 1Q23 1,840 1,856 1,872 1,894 1Q24 1,904 1,920 1,942 1,957 1Q25 +3% Group and individually continued insurance • Continuation of the trend of premium growth from health insurance, thanks to the acquisition of new entities and ongoing portfolio re-tariffication • Development of the portfolio of other group protection insurance and individually continued insurance. Individual insurance • Continuation of the trend of growth in sales of individual life and endowment insurance, including an offering of insurance with bonuses (PZU Perspektywa na Przyszłość) and package insurance (PZU Pakiet na Życie i Zdrowie), tailored to life situation, age, and individual clients’ needs. • Growth in written premiums from bancassurance mainly due to: • high sales of life and endowment insurance with single premium and guaranteed sums insured • investment banking products. … … … … … … 1Q22 1Q23 1Q24 1Q25 284 263 397 536 389 442 464 491 513 564 648 688 681 +33% Protection products Periodic investment products Single premium investment products Investment products 1 1 2 2 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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PZU is steadily developing in the health pillar, achieving 8.6% y/y revenue growth Revenue (PLN m) Number of contracts at the end of the period (m) 03.2023 03.2024 03.2025 3.31 3.46 3.54 +2.4% 12 Appointments arranged online through mojePZU Number of telemedicine consultations (to total consultations)03.2023 03.2024 03.2025 31.0% 35.3% 39.9% 96% 4% 2016 96% 4% 2017 92% 8% 2018 84% 16% 2019 72% 28% 2020 99% 31% 2021 70% 30% 2022 67% 33% 2023 63% 37% 1% 2024 57% 43% 2015 02.2025 69% Services (subscriptions and health insurance) provided in own facilities and partner network 226 274 290 164 195 219 03.2023 03.2024 03.2025 390 469 509 +8.6% Medical facilities Insurance/subscriptions Business results • More than 8% revenues growth thanks to higher average premiums – mainly due to insurance and PZU Zdrowie’s own products (subscriptions) • Over 12% increase in revenues of medical facilities, mainly due to sales to the National Health Fund Product offering Increase in the number of health product contracts at the end of 1Q 25, among others, thanks to the sale of add-ons to protection products (including access to specialists, outpatient rehabilitation or selected tests and treatments) Digitization of the service model The growing importance of remote service channels for patients - the share of appointments made through mojePZU rose to 39.9% in March 2025. +12.2% +6.0% 1 2Increase y/y Partner network Own facilities 03.2023 03.2024 03.2025 32.8% 29.9% 29.5% 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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Assets under management at PZU Group companies recorded high growth Assets of external clients TFI PZU and PTE PZU (PLN bn) Assets of external clients TFI of PZU Group banks (PLN bn) 13 03.2024 03.2025 58.9 65.1 28.7 30.2 31.3 33.7 +10.5% PTE PZU TFI PZU 2.0 03.2024 03.2025 28.2 38.3 26.2 34.7 3.6 +35.9% Alior TFI TFI Pekao +11.8% +9.2% Increase y/y Increase y/y TFI PZU in 1Q25 – #1 among “non-bank TFIs” and #4 in the market for net sales of capital market funds from an external client +PLN 1.0 bn1 – Market inflows to funds amounted to PLN 11.2 bn – TFI PZU's share at 9.1% – ECS assets at PLN 7.5 bn (up 44.4% y/y) – TFI PZU ranked second place in the ECS market in terms of assets under management, with a share of 21.8% – more than twice the share of the next competitor 1 2 3 4 +82.3% +32.4% 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 1. excluding transactions on dedicated fund
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Gross written premium acquired by PZU through cooperation with PZU Group banks higher by nearly 40% y/y Gross written premium raised in cooperation with Bank Pekao and Alior Bank (PLN m) 14 Gross written premium raised in cooperation with banks (PLN m) Bancassurance • Continued high sales growth of products with a guaranteed rate of return (SPE) • Stable sales of unit-linked products • Doubled number of motor insurance policies concluded via Bank Pekao • High sales of products linked to mortgage loans and cash loans at PZU Group banks 1 2 3 4 1. Premiums written from SPE bank products also include investment contracts 1 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 124 158 155 151 133 69 66 80 125 92 97 91 119 139 131 4862 1Q24 2Q24 58 3Q24 62 4Q24 54 1Q25 303 394 457 444 415 +37.0% Banking SPE Life and investment insurance Protection life insurance Non-life insurance 435 569 1Q24 1Q25 +30.9%
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PZU Group results under IFRS 17 1. Excluding the investment component (mainly applies to unit-linked products) 2. aROE – adjusted return on equity, calculated on a capital basis excluding cumulative other comprehensive income relating to insurance and reinsurance financial income and expenses. Net result and equity attributable to owners of the parent company, annual return 3. Only for non-life insurance in PZU Group in Poland 4. Margin for group and individually continued insurance segment in Poland 16 1 2 3 4 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes m PLN 1Q24 4Q24 1Q25 Change y/y Change q/q PZU GROUP EXCL. ALIOR BANK AND BANK PEKAO Gross insurance revenue 7 012 7 587 7 533 7,4% (0,7%) Net insurance revenue 6 587 7 084 7 033 6,8% (0,7%) Insurance service expenses (net) (5 800) (5 862) (5 782) (0,3%) (1,4%) Net insurance claims and benefits1 (3 976) (4 031) (4 005) 0,7% (0,6%) Administrative expenses (611) (663) (633) 3,6% (4,5%) Acquisition expenses (1 139) (1 226) (1 210) 6,2% (1,3%) Loss component amortization 261 295 269 3,1% (8,8%) Recognition of the loss component (335) (237) (203) (39,4%) (14,3%) Insurance service result 787 1 222 1 251 59,0% 2,4% Net financial revenue 281 349 326 16,0% (6,6%) Insurance and outward reinsurance finance income or expenses (439) (213) (494) 12,5% 131,9% Result from investment activities - allocated to insurance segments 720 562 820 13,9% 45,9% NET RESULT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY 757 1 138 1 267 67,4% 11,3% BANKS: ALIOR AND PEKAO Net profit (loss) attributable to equity holders of the parent company 497 543 493 (0,8%) (9,2%) NET RESULT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY 1 254 1 681 1 760 40,4% 4,7% MAIN FINANCIAL RATIOS (%) aROE2 17,1 22,5 22,4 5,3 p.p. (0,1) p.p. Claims ratio (with net loss component) 61,5 56,1 56,0 (5,5) p.p. (0,1) p.p. Administrative expense ratio 9,3 9,4 9,0 (0,3) p.p. (0,4) p.p. Acquisition expense ratio 17,3 17,3 17,2 (0,1) p.p. (0,1) p.p. Combined ratio3 90,1 86,1 82,5 (7,6) p.p. (3,6) p.p. Margin4 17,8 29,8 21,2 3,4 p.p. (8,6) p.p.
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Non-life insurance under IFRS 17 – mass insurance segment 17 Insurance revenue (PLN m) Operating result (PLN m)Net insurance service expenses (PLN m) … ... 878 937 1,100 1,076 1Q24 1,159 1,210 1Q25 TPL MOD Non-motor 3,054 3,306 +8.3% 694 730 157 -108 1,844 233 1Q24 75 -133 1,900 233 1Q25 2,820 2,805 -0.5% 91 120 195 336 99 -54 60 1Q24 29 1Q25 TPL MOD Non-motor Net financial revenue 292 584 +100.0% Mass insurance segmentCOR RATIO Mass insurance segment – motor Mass insurance segment – non-motor COR 1Q24 93.3% 99.7% 81.4% COR 1Q25 -33 -37 Reinsurance premium allocation Recognition and change of the loss component Amortization of the loss component Claims Administrative exenses Acquisition expenses • improvement of the results on both the non-motor insurance portfolio (PLN +141 m y/y) and the motor insurance portfolio, including TPL insurance by PLN 83 m y/y • higher excess of investment income over net financing expenses following the increase in the required balance of assets to cover liabilities and the purchase to the portfolio of Polish government bonds at high yields in the market • higher y/y current year claims liabilities – mainly in motor third-party liability insurance (impact of claims inflation) • increase of 5.2% y/y in the amortization of acquisition cash flows, driven by portfolio growth and a higher share of non-motor insurance • significantly lower y/y recognition of new and higher amortization of existing loss component due to changes in tariffs and in the rate of claims inflation - total impact on cost decrease: PLN 107 m y/y) • increase in amortization of liability for remaining coverage (LRC) for portfolios: - non-motor insurance +13.6% y/y – consequence of development of household insurance (impact of refreshing the offer and withdrawal of rarely chosen options), PZU Firma insurance offered to small and medium-sized enterprises, PZU Auto Pomoc and PZU Auto Szyba - motor insurance +7.0% y/y – the impact of gradual changes in tariffs, following claims inflation and the frequency of claims • a higher level of premiums allocated to cover acquisition cash flows as a consequence of the cumulative effect of growing sales and a simultaneous increased share in the portfolio of voluntary insurance 85.8% 93.9% 71.6% 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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Motor insurance market in Poland – change in average price and frequency of claims 181. Own compilation based on market reports of KNF and PIU 2. Own compilation based on police data 3. The Quarterly Bulletin of the Polish Financial Supervision Authority (www.knf.gov.pl). Insurance Market 4/2024 direct business; Profitability as a quotient of technical result and net earned premiums Change in the average market price of MTPL and MOD insurance (%)1 In motor third-party liability insurance: • The year 2024 marked the second consecutive year of premium increases following 5 years of declines during the period 2018-2022 • The upward trend in the market was interrupted due to the aggressive pricing policies of key competitors fighting to gain market share • The profitability of competitors (excluding PZU Group) in the fourth quarter dropped to -7.8% • During this time, PZU consistently implemented a policy of price increases, resulting in lower sales dynamics • A noticeable slowdown in the frequency of claims • The premium increases appear to be insufficient to reverse the trend of deteriorating profitability in TPL, given the claims inflation and an increase in frequency in 2024 compared to the post -pandemic years High profitability in MOD insurance and low profitability in TPL is causing increased pressure on MOD, which will lead to a decrease in margins 2009 2.1 -2.4 2010 9.1 2011 2.7 -0.7 2012 -5.8 -6.3 2013 -8.8 2014 -4.0 -0.8 2015 11.4 2016 20.3 12.5 2017 4.6 2018 -1.4 2019 -3.5 2020 1.5 2021 2022 2.7 2023 3.6 2007 4.0 1.8 1Q24 2Q24 3.0 3Q24 3.7 4Q24 3.5 1Q25 1.6 3.8 2008 -1.6 -12.1 15.5 -13.6 27.0 -1.3 -3.0 -3.8 6.3 -0.7 7.9 8.2 7.1 4.5 8.0 8.7 7.6 -0.9 TPL MOD Number of traffic incidents in 2025 and 2024 vs. pre-pandemic period (quarterly, in thousands)2 0 2 4 6 8 10 5.6 4.1 3.8 1Q 2Q 3Q 4Q -7.6% 2019 2024 2025 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 4.5 8.1 3.3 6.9 -0.7 11.4 1Q22 11.2 0.6 5.9 0.4 7.6 -4.2 9.4 -0.3 9.3 -2.4 5.8 -2.7 5.7 -4.8 6.4 -6.8 9.2 1.2 TPL MOD MTPL and MOD insurance market profitability, quarterly, %3 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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Distribution over time of the results based on IFRS 17 and local accounting standards 19 Under IFRS 17 a new loss component is created for an onerous cohort, encompassing the expected losses over its duration. Under local accounting standards losses are shown in the net income statement together with profitable policies. A Under IFRS 17 the existing loss component at the beginning of the period is amortized over subsequent periods in line with the pattern of claims paid. Under local accounting standards losses from policies sold in the previous period gradually materialize, with their effect being offset by the results from profitable policies. B 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes B A 5 1 14 -4 16 2 14 Year 1 Year 2 Year 3 Cumulative 8 Local standards – cumulative IFRS17 - cumulative Local standards IFRS17 -9.3 +8.3 +1.1 0.0 A B IFRS 17 vs local standards impact - difference by year
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Non-life insurance under IFRS 17 – corporate insurance segment • increase in amortization of liability for remaining coverage (LRC) for portfolios: - non-motor insurance (+11.2% y/y) – effect of earning 2024 premiums, including large contracts concluded in 4Q24 (contracts with fuel and power generation clients). In addition, high sales in 2025, in the strategic client area (renewal of several long -term contracts) - motor insurance (+9.4% y/y) – impact of both growth in MOD and MTPL insurance (effect of good sales of the current year, especially last year's leases) • higher y/y levels of premiums allocated to cover acquisition expenses due to portfolio development and changes in product mix 20 • lower y/y insurance service expenses as a result of: - release of a higher y/y net excess of prior years' claims reserves over the current projected value of payouts – mainly in non-motor insurance - higher net liabilities y/y for the current year’s claims in MOD insurance, due to growth in claims inflation • higher acquisition expenses with a simultaneous increase in the share of costs in revenue, mainly in non-motor insurance • higher result from insurance services, mainly in non-motor insurance, due to lower y/y level of claims • higher excess of investment result over net financing expenses following the increase in the required balance of assets to cover liabilities and the purchase to the portfolio of Polish government bonds at high yields in the market Corporate insurance segmentCOR RATIO Corporate insurance segment – motor Corporate insurance segment – non-motor 729 811 245 263157 173 1Q24 1Q25 MTPL MOD Non-motor 1,131 1,247 +10.3% 64 68 128 187 44 59 2 1Q24 4 1Q25 MTPL MOD Non-motor Net financial revenue 238 318 +33.6% -375 -446 Reinsurance premium allocation 77.0% 88.4% 64.5% 68.8% 85.2% 50.0% COR 1Q24 COR 1Q25 149 161 73 379 318 19 -27 62 1Q24 16 -17 1Q25 582 551 -5.3% Recognition and change of the loss component Amortization of the loss component Claims Administrative expenses Acquisition expenses 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes Insurance revenue (PLN m) Operating result (PLN m)Net insurance service expenses (PLN m)
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• Higher by PLN 64 m expected claims and benefits mainly as a result of indexation of benefits and aging of individually continued insurance portfolio (PLN +40 m y/y) and growth of group insurance portfolio (PLN +40 m y/y) • an increase in release of CSM, mainly in the portfolio of health insurance, related to an increase in the carrying amount of CSM • higher revenue to cover rising acquisition expenses Life insurance under IFRS 17 – group and individually continued insurance Insurance revenue (PLN m) Operating result (PLN m)Insurance service expenses (PLN m) 223 221 308 327 -18 -18 32 1,263 114 1Q24 33 1,327 126 1Q25 1,922 2,016 +4.9% 214 217 123 -82 1,309 114 1Q24 69 -75 1,363 126 1Q25 1,678 1,700 +1.3% 99 112 244 316 1Q24 1Q25 343 428 +24.8% • lower recognition and change of the loss component as a result of lower y/y recognition of the loss component related to new sales of group and group health insurance by PLN 63 m • higher claims and benefits – as a result of increased benefits from group insurance (PLN +26 m y/y), from individually continued insurance (PLN +23 m y/y), and higher health insurance utilization (PLN +5 m y/y) • a slight increase in amortization of acquisition expenses (PLN +12 m y/y) • lower amortization of the loss component (PLN 7 m y/y) • higher insurance service result (PLN +72 m y/y) • a slight increase in net financial revenue (PLN +13 m y/y) as a result of a decrease in insurance finance expenses (PLN +3 m y/y) and an increase in net investment income (PLN +10 m y/y) as a result of higher income from equity instruments as well as the purchase to the portfolio of Polish government bonds at high yields in the market 21.2% Margin17.8%Release of the CSM Release of risk adjustment for non-financial risks Expected claims and benefits Expected expenses Premiums related to acquisition expenses Other Recognition and change of the loss component Amortization of the loss component Claims and benefits Administrative expenses Acquisition expenses 21 Insurance service result Net financial revenue * Net financial income – result on investment activity less financial expenses from insurance 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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PZU portfolio against mortality in Poland in 1Q25 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes • The first quarter is usually a period of seasonally higher deaths • In 1Q25, an average of 8.8 thousand death certificates were issued per week, compared to 8.3 thousand in the same period last year (+6% y/y) • Throughout 2024, an average of 7.8 thousand deaths per week were registered, which is in line with 2017–2019 levels, i.e., the pre-pandemic period 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 Week Week 1 Week 4 Week 8 Week 12 Week 16 Week 20 Week 24 Week 28 Week 32 Week 36 Week 40 Week 44 Week 48 Week 52 5,000 10,000 15,000 20,000 25,000 30,000 1 4 8 12 16 20 24 28 32 36 40 44 48 52 22 1 2 3 * figures from Statistics Poland ** includes all PZU products and the following risks: death of primary insured, death of spouse, death of parents, death of in- laws. Data for the current year may be incomplete,, this is due to the time that elapses between the occurrence of an event and its reporting to the insurer and payment. Number of deaths per week in Poland in 2021, 2024 and 2025* Number of all death benefits paid in PZU** per week in 2021, 2024 and 2025 (by date of death) PL 2025 PL 2024 PL 2021 PZU 2025 PZU 2024 PZU 2021
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• higher recognition and change of the loss component as a result of the creation of the loss component for the annuity portfolio higher by PLN 2.4 m y/y • higher realization of claims and benefits of the current period, mainly for term insurance (PLN +5.6 m y/y), offset by a decrease for bank protection insurance (PLN -1.5 m y/y) • higher administrative expenses mainly for products introduced during 2024 (PLN +3.6 m) • higher acquisition expenses amortization • higher release of contractual service margin mainly as a result of growth and higher profitability of bancassurance portfolio (PLN +14 m y/y) • higher level of premiums to cover expected claims and benefits – mainly as a result of growth on the term life insurance portfolio • higher revenue to cover rising acquisition expenses • negative deviation on other income refers to variance on premiums (so-called “experience adjustment”), in 2024 there were lower-than-expected loan contract cancellations, which translated into a positive variance, currently a small mismatch of about PLN 1–1.5 m on each product Life insurance under IFRS 17 – individual protection insurance 23 Insurance revenue (PLN m) Operating result (PLN m)Insurance service expenses (PLN m) • an increase in insurance service result with higher margins realized on the individual bank protection insurance portfolio and the individual protection insurance portfolio with profit sharing and lower margin realized on the individual protection insurance portfolio • decrease in net financial revenue (PLN -1 m y/y) 83 93 4 1Q24 3 1Q25 87 96 +10.3% Insurance service result Net financial revenue 4543 2825 4434 8268 5 4 1Q24 6 -6 1Q25 179 199 +11.2% Release of the CSM Release of risk adjustment for non-financial risks Expected claims and benefits Expected expenses Premiums related to acquisition expenses Other 43 45 23 26 30 343 -3 1Q24 5 -4 1Q25 96 106 +10.4% Recognition and change of the loss component Amortization of the loss component Claims and benefits Administrative expenses Acquisition expenses * Net financial income – result on investment activity less financial expenses from insurance 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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Life insurance in Poland under IFRS 17 – evolution of contractual service margin 24 Group and individually continued insurance – CSM (PLN m) … The change in contractual service margin (value of future profits) between balance sheet dates is due to: • additional CSM from the sale of new business in the amount of PLN 274 m • positive deviations in the development of the insured portfolio, including the positive effect of premium indexation by inflation and the upselling of riders in individually continued insurance (a total of PLN +142 m, including upselling of PLN +59 m) • CSM increase by the change in the time value of money – accrued interest • CSM release of PLN 327 m – profit attributable to the current period The change in contractual service margin (value of future profits) between balance sheet dates is due to: • additional CSM from the sale of new business in the amount of PLN 91 m • variances in the development of the insured's portfolio (PLN +4 m) • CSM increase by the change in the time value of money – accrued interest • CSM release in the amount of PLN 82 m – profit attributable to the current period Individual protection insurance – CSM (PLN m) … ... 274 128 83 12.2024 CSM from the new business Assumption change/variance Accrued interest (327) CSM release 03.2025 7,468 7,626 91 12.2024 CSM from the new business 4 Assumption change/variance 14 Accrued interest (82) CSM release 03.2025 1,202 1,229 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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Total, insurance segments, investment activities and other 812 1 007 24,0% Main portfolio 647 733 13,3% Debt instruments - interest 519 586 13,0% Debt instruments - revaluation and execution 22 (24) x Equity instruments 49 89 80,6% Real estate 57 82 44,2% Investment products 161 257 59,6% Other 4 17 307,2% IFRS, PLN m 1Q24 1Q25 Change y/y Investment income less interest expenses 5 067 5 533 9,2% Investment result allocated to insurance segments in Poland ex unit-linked 521 549 5,4% Unit-linked 161 257 59,6% Investment result allocated to insurance segments abroad 38 25 (34,2%) Surplus portfolio, TFI, PTE 92 176 91,3% Banking activities including PPA 4 255 4 526 6,4% Investment result Structure of the core portfolio by asset class and methods of their valuation • Secure portfolio structure: debt instruments account for 84% of the portfolio, government debt is 67% of the portfolio • Profitability of the core portfolio with FX on liabilities at 6.3 % in 1Q25 • Higher interest income y/y – the purchase of Polish Treasury bonds at high yields in the market • Lower y/y result from valuation and execution of debt instruments – a significant impact of foreign exchange losses offset by a change in the level of financial revenue and expenses from insurance • Higher performance of equity instruments - stronger growth of stock indexes, improvement in the result of the USD private equity portfolio – the cycle of interest rate cuts by the FED starting in 2024 • Higher real estate portfolio result - lower fitout costs, higher swap point revenue • Positive impact of other items - temporary foreign exchange differences on valuation of real estate – value eliminating in half-year periods Core portfolio: PLN 52.5 bn PZU Life Życie investment products: PLN 7.3 bn Return on FX core portfolio from liabilities (%) Investment result allocated to insurance segments in relation to net insurance expenses and revenue* (PLN m) * Excluding unit-linked and foreign operations 521 549 (263) (246) 1Q24 1Q25 Net insurance finance income and expenses Investment result allocated to insurance segments 258 303 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0 6,5 7,0 7,5 8,0 8,5 1Q19 1Q20 1Q21 1Q22 1Q23 1Q24 6.3 1Q25 Foreign government bonds 4%13%Corporate debt 3% Cash 18% 8%Real estate 41% 3% Government bonds 5% Equity 62% 5% 17% 4% 8% 4% Amortized cost Fair value through other comprehensive income Fair value through result 1 2 4 5 6 *Restated data. 25 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 7 3
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High level of solvency of the Group Solvency II ratio, 31 December 2024 26 1 1Q22 226% 2Q22 230% 3Q22 240% 4Q22 235% 1Q23 227% 2Q23 230% 3Q23 229% 4Q23 227% 1Q24 233% 2Q24 234% 3Q24 226% 4Q24 24,5 11,0 24,7 10,9 25,4 11,0 26,4 11,0 26,7 11,3 27,2 11,9 222% 12,1 28,0 12,3 28,9 12,7 27,8 12,8 30,3 13,0 30,0 13,2 30,0 Solvency II ratio Own funds Solvency requirement 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 1 Decrease in own funds in 4Q24 by PLN 0.3 bn Main causes: • operating flows and investment results (PLN +1.0 bn) • negative impact of bond valuation and technical provisions, including from reinsurance (PLN -0.7 bn) • increase in bank valuation (PLN +0.2 bn) • higher expected dividends determined based on the Management Board's recommendation to pay out 72% of PZU Group profit attributable to PZU shareholders 1 (PLN -0.9 bn). 1 2 3 4 SCR growth in 4Q23 by PLN 0.25 bn The main drivers of the q/q changes: • increase in basic solvency capital requirement (BSCR, PLN +0.17 bn) after an increase in market rate risk and credit spreads • tax effects (PLN -0.04 bn) • higher capital requirements of Bank Pekao (PLN +0.11 bn) 1 2 3 Solvency ratio calculated according to the formula: Own funds / Solvency requirement. Annual data based on audited reports on solvency and financial condition ( SFCR) available at https://www.pzu.pl/relacje-inwestorskie. Other unaudited data. 1. Infra-annual data presented in accordance with the previous methodology, according to which own funds were reduced by 80% of the PZU Group's consolidated result attributable to PZU shareholders. It does not take into account the new rules included in the KNF's circular letter to insurance companies dated 16 April 2021, according to which, starting from 1Q 21 a new element in the calculation of company and group solvency in interim periods is an adjustment for the entire amount of dividends expected for the year.
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Strategic goals until 2027 and their implementation Gross insurance revenue1 (PLN m) PZU Group net profit2 (PLN m) Solvency II ratio (%) > PLN 36 bn FY2027 KPI > PLN 6.2 bn FY2027 KPI > 19% FY2027 KPI > 190% 2027 KPI 03.2024 03.2025 15.3 24.0 +8.7 03.2024 03.2025 1,254 1,760 +40.4% 229 226 2023 2024 -3 03.2024 03.2025 90.1 82.5 -7.6 EPS3 (PLN) > 5.1 FY2027 KPI 03.2024 03.2025 0.9 1.5 +67.4% ≥ 4.5 FY2027 KPI 2024 2025 4.34 4.47 +3.0% DPS (PLN) < 90% FY2027 KPI COR4 (%) 03.2024 03.2025 20.9 24.2 +3.3 > 20% FY2027 Margin5 (%) 03.2024 03.2025 28.7 31.3 +9.2% > PLN 49 bn 2027 Health Pillar revenue (PLN m) KPI KPI Assets of external clients of TFI PZU (PLN bn) ROE3 (%) 1. Gross insurance revenues of PZU Group 2. Net profit attributable to the shareholders of the parent company 3. Core business, excluding banks 4. Combined ratio (COR) in non-life insurance in Poland 5. Life insurance operating margin in Poland 6. Dividend recommended by the Management Board of PZU SA, subject to the decision of the Shareholder Meeting 28 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 03.2024 03.2025 7,012 7,533 +7.4% 6 469 509 03.2024 03.2025 +8.6% > PLN 3 bn FY2027 KPI
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PZU, TUW PZUW, LINK4 Talanx 18,2%Ergo 15,5% VIG 10,4% UNIQA 7,3% Allianz 4,9% Generali4,5% Pozostali6,3%Others 6.3% Trends in the non-life insurance market in Poland • The acceleration in the motor and especially TPL market continues (+12.6% and 10.7% y/y in 4Q24, respectively). Premium growth in TPL insurance excluding reinsurance of 15.1%, MOD growth of 10.5%, but the market deepens loss (TPL technical result, direct business PLN -247 m in 4Q24 and PLN -576 m on a compound basis from the beginning of the year) • Limited growth in non-motor insurance in the fourth quarter (+5.4% y/y). Property insurance (PLN +312.9 m, +7.5% y/y), general TPL insurance (PLN +141.8 m, +12.4% y/y) and assitance insurance (PLN +108.7 m, +19.1% y/y) were the biggest contributors to growth in value terms. Decrease in marine, aviation and transport insurance (PLN -156.9 m, -47.6% y/y) • PZU Group’s market share in non-life insurance (direct business) after 4Q24 was 32.5% • High share of PZU Group's technical result in the technical result of the market at 50.4%1 Market shares in 20242 Motor insurance market dynamics1, y/y Non-motor insurance market dynamics1, y/y 1. According to the KNF's report after 4Q 2024 2. According to the KNF's report after 4Q 24; i.e., market and market share including PZU's inward reinsurance to LINK4 and TUW PZUW 3. PZU Group’s market share in non-life insurance on direct business after 4Q 2024 4. Change in share y/y, respectively: including PZU's inward reinsurance to LINK4 and TUW PZUW and from direct business 32.9%2 32.5%3 -0.4 p.p. 4 -0.6 p.p. 4 -10% -5% 0% 5% 10% 15% 20% 25% 30% 4Q20 4Q21 4Q22 4Q23 4Q24 12,6% Motor TPL TPL direct business MOD -10% -5% 0% 5% 10% 15% 20% 25% 30% 4Q20 4Q21 4Q22 4Q23 4Q24 5.4% Non-motor Property (Group 8+9) Other segments 30 1 2 3 4 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes
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Life insurance market in Poland 31 -21.7% -100% -50% 0% 50% 100% 150% 4Q20 4Q21 4Q22 4Q23 4Q24 Single Life insurance Group 1 Unit-linked insurance Insurance market with periodic premiums dynamics1, y/y Insurance market with single premiums dynamics 1, y/y 4.6% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 4Q20 4Q21 4Q22 4Q23 4Q24 Periodic Life insurance Group 1 Accident and illness insurance (riders) 1. In accordance with KNF’s quarterly reports 2. PZU Group's share of gross written premiums from insurance premiums paid periodically as reported by the KNF in 2024 Market shares in periodic premiums2 in 2024 • Periodic premium insurance market (90% of the market) grew in 4Q by 4.6% y/y biggest impact by value: accident and illness insurance (PLN +189.1 m, +9.3% y/y) and Group I insurance (life insurance) (PLN +150 m, +7.4% y/y) • Deeper decline in insurance with single premiums (10% of the market) -21.7% y/y. Biggest positive impact by value of unit-linked insurance (PLN +119.3 m, +120.9% y/y), with a decrease in Group V – accident and illness insurance (PLN -165.6 m) and Group I – life insurance (PLN -115.3 m, -22.4% y/y) • PZU Group’s share of the single-premium insurance market surged (75.6% in 4Q24 vs. 37.1% after 4Q23) – impact of high sales of insurance offered in cooperation with the PZU Group’s banks, including: individual life and endowment insurance with guaranteed sums insured • PZU's stable share of the periodically paid insurance market 41.6% in 2024 1 2 3 4 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes PZU Życie 41,6% Allianz 14,2% Nationale Nederlanden 10,6% Talanx 7,8% VIG 6,4% UNIQA 4,8% Generali 4,5% Pozostali 10,1% Others 10.1%
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Profitability by operating activities segments under IFRS 17 32 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes Insurance segments Insurance revenue Result* m PLN, IFRS17 1Q24 1Q25 Change y/y 1Q24 1Q25 Change y/y 1Q24 1Q25 Total non-life insurance – Poland 4 185 4 553 8,8% 530 902 70,2% 90,1% 82,5% Mass insurance – Poland 3 054 3 306 8,3% 292 584 100,0% 93,3% 85,8% Motor TPL 1 100 1 159 5,4% -54 29 x 104,9% 97,5% MOD 878 937 6,7% 60 99 65,0% 93,2% 89,4% Other products 1 076 1 210 12,5% 195 336 72,3% 81,4% 71,6% Net financial revenue x x x 91 120 31,9% x x Corporate insurance – Poland 1 131 1 247 10,3% 238 318 33,6% 77,0% 68,8% Motor TPL 157 173 10,2% 2 4 100,0% 98,7% 97,7% MOD 245 263 7,3% 44 59 34,1% 81,6% 77,0% Other products 729 811 11,2% 128 187 46,1% 64,5% 50,0% Net financial revenue x x x 64 68 6,3% x x Total life insurance – Poland 2 125 2 242 5,5% 444 542 22,1% 20,9% 24,2% Group and individually continued insurance 1 922 2 016 4,9% 343 428 24,8% 17,8% 21,2% Individual insurance 179 199 11,2% 87 96 10,3% 48,6% 48,2% Investment insurance 24 27 12,5% 14 18 28,6% x x Total non-life insurance – Ukraine and Baltic States 685 720 5,1% 85 124 45,9% 89,2% 84,6% Baltic countries 633 668 5,5% 77 116 50,6% 89,1% 84,3% Ukraine 52 52 x 8 8 x 90,4% 88,5% Total life insurance – Ukraine and Baltic States 17 18 5,9% 9 10 11,1% 52,9% 55,6% Lithuania 11 12 9,1% 4 4 x 36,4% 33,3% Ukraine 6 6 x 5 6 20,0% 83,3% 100,0% * Operating Result Insurance service result Combined ratio / Margin
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PZU Group gross written premium 33 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes Insurance segments m PLN, local GAAP 1Q24 4Q24 1Q25 Change y/y Change q/q External gross written premium 7 657 8 729 7 958 3,9% (8,8%) Total non-life insurance - Poland 4 565 5 452 4 677 2,5% (14,2%) Mass insurance – Poland 3 424 3 571 3 509 2,5% (1,7%) Motor TPL 1 172 1 189 1 168 (0,3%) (1,8%) MOD 991 961 971 (2,0%) 1,0% Other products 1 261 1 421 1 370 8,6% (3,6%) Corporate insurance – Poland 1 141 1 881 1 168 2,4% (37,9%) Motor TPL 154 219 192 24,7% (12,3%) MOD 226 293 259 14,6% (11,6%) Other products 761 1 369 717 (5,8%) (47,6%) Total life insurance – Poland 2 315 2 451 2 470 6,7% 0,8% Group and individually continued insurance - Poland 1 894 1 942 1 957 3,3% 0,8% Individual insurance – Poland 513 688 681 32,8% (1,0%) Premium on protection products 247 245 234 (5,1%) (4,6%) Premium on periodic investment products 33 30 34 1,0% 13,4% Premium on single investment products 140 234 246 75,4% 5,1% Investment contracts 92 178 167 81,3% (6,4%) Total non-life insurance – Ukraine and Baltic States 742 784 773 4,2% (1,4%) Baltic countries 691 725 720 4,2% (0,7%) Ukraine 50 59 53 5,1% (10,3%) Total life insurance – Ukraine and Baltic States 36 41 38 5,1% (7,9%) Lithuania 25 30 28 9,5% (7,7%) Ukraine 11 11 10 (5,4%) (8,3%)
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Own funds PZU Group data in Solvency II as of 31 December 2024 (PLN bn) Comparison of own funds and consolidated equity under IFRS 34 Own funds according to WII: • contractual service margin as the main reason for differences in technical provisions valuation • less anticipated dividends; in interim periods – 80% of the PZU Group's profit attributable to shareholders of the parent company • less projections of the amount of tax on assets expected to be paid by insurance companies within 12 months after the balance sheet date Writing off intangible assets -4.3 Expected dividends and tax on assets 21.5 0.6 PZU Groups’ equity attributable to equity holders of the parent company according to IFRS PZU Group’s own funds according to SII 2.3 PZU subordinated debt 7.2 Valuation of technical provisions (BEL+RM) -2.0 Valuation of assets and liabilities to fair value -2.6 Banks’ valuation -0.6 Deferred tax -2.1 32.1 30.0 8.4 -6,5% 1 2 3 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes Insurance group Other financial institutions Banks
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Solvency capital requirement (SCR) PZU Group data in Solvency II as of 31 December 2024 (PLN bn) Basic solvency capital requirement (BSCR) 1. The difference between SCR and a total of: BSCR, operational risk, the requirement of the banking sector and other financial institutions is due to the tax adjustment (LAC DT). 2. Before the effects of diversification. Solvency capital requirement (SCR) Diversification effect -33% 13.2 35 6.7 2.7 4.2 0.3 Non-life and health insurance Life insurance Market risk Counterparty default (CDR) 9.4 1.0 4.0 0.3 BSCR Operating risk Banks Other (TFI, PTE) 1 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 35 Increase in solvency requirement in 4Q by PLN 0.25 bn. Main reasons for SCR changes: • PLN +0.23 bn increase in market risk2 driven mainly by an increase in rate risk (impact of higher rates on long rate position) and credit spread risk (increase in corporate bond exposure); decrease in GBP currency risk • slight increases in insurance risks (PLN +0.04 bn 2), including operational risks, following an increase in volumes in non-life insurance and an update of actuarial assumptions (e.g., lower mortality, increased costs) • tax effects from the above changes (PLN -0.04 bn) • an increase in risk at Bank Pekao (PLN + 0.11 bn) due to higher credit exposures and due to the use of the standardized approach to estimate operational risk. In 2025, the bank will use an internal model (AMA method), which will lower requirements. Increase in solvency requirement over 2024 by almost PLN 1 bn (y/y). • half of the increase was in insurance risks, mainly non-life insurance, particularly due to the high increase in catastrophic risks (floods) • approx. 1/5 of the change was related to market risks, primarily rate and credit spread risk (higher fixed income deposit exposures) • 28% of the change involved Bank Pekao and Alior Bank 1 2 3 4 1 2 3
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Sustainable development Cooperation between PZU LAB and Corab • Corab, a member of the MS Galleon Group, is Poland's largest manufacturer and distributor of photovoltaic structures and equipment. The company has more than 30 years of experience and a production potential of 3.5 GW of PV power per year. • The agreement provides for the exchange of know- how, joint R&D ventures, development of reports, certification of Corab products and services and suppliers by PZU LAB, promotion of joint educational projects, and organization of training for Corab partners and clients in the use, maintenance and safety of PV installations. Offshore Wind Farm Baltica 2 with TUW PZUW policy • Baltica 2 is a joint project between PGE and Ørsted. With 107 turbines with a total capacity of 1.5 GW, the offshore wind farm will be able to provide green energy to more than 2.5 m homes in Poland as early as 2027, making a significant contribution to the transformation of Poland's energy sector. • TUW PZUW has extensive experience with risk assessment in this type of investment. The PZU Group company is also constantly developing competencies related to this subject through cooperation with foreign partners. Presentation of the PZU Foundation’s strategy • “We act today to create tomorrow” – this is the Foundation's motto, which is and will be implemented through cooperation with non- governmental organizations, institutions and universities in Poland and abroad, supporting substantively, organizationally and financially the implementation of projects in such areas as social capital, education, competencies of the future, culture. • The PZU Foundation will pilot its own original projects to build the Foundation's position as a leader in modern philanthropy in Poland. 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 36
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Legal disclaimers This presentation has been prepared by PZU SA ("PZU") and is for informational purposes only. Its purpose is to present selected data on the PZU Group, including growth prospects. PZU does not undertake to publish any updates, changes, or adjustments to information, data or statements contained in this PZU presentation if the strategy or plans of PZU shall change, or in the case of facts or events that shall affect the strategy or plans of PZU, unless such an obligation to inform resulted from applicable provisions of the law. PZU Group is not liable for the effects of decisions made following the reading of this presentation. At the same time, this presentation may not be treated as a part of a call or an offer to purchase securities or make an investment. It does not constitute also an offer or a call to effect any other transactions concerning securities. 1. Main achievements and plans 2. Business development in 1Q2025 3. Results in 1Q2025 4. Strategy 5. Annexes 37
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Thank you Magdalena Komaracka, CFA mkomaracka@pzu.pl Piotr Wiśniewski pwisniewski@pzu.pl Contact: www.pzu.pl/ir