An accelerating Polish economy, thanks to growing investments, record profitability in the insurance and banking sectors, and regulatory pressures (DORA, AI Act, CSRD) are the main factors shaping PZU Group's business in 2025. In such an environment, the Group focused on risk selection, adjusting tariffs, developing digital channels, strengthening operational resilience and cyber security, and expanding its offerings in response to changing customer needs and expectations.
| Factors and events affecting PZU Group’s operations | |||
|---|---|---|---|
| Category | Factor / Event (2025) | Mechanism for influencing operations | Impact on the PZU Group |
| External factors | |||
| Geopolitics | Trade tensions and increasing fragmentation of international cooperation, war in Ukraine | Economic uncertainty affecting financial markets, energy risks and inflationary pressures leading to higher energy prices, among other things | Restriction of insurance activity in war-affected parts of Ukraine directly affecting insurance revenues Inflation of the cost of repair services, materials and energy directly affecting the cost of operations |
| Macroeconomics | GDP growth, falling inflation, interest rate cuts, Consumption growth due to real income growth Lower wage pressure | GDP growth and falling interest rates are boosting demand for insurance, loans and investment products. Inflation and interest rates affect the cost of capital and investment performance, and interest margins in the banking segment |
Insurance revenue up, investment result up Growing demand for insurance products thanks to rising household purchasing power in real terms. Stabilization of personnel costs in the Group |
| Non-life insurance sector – non-motor insurance | Market growth mainly in property insurance (residential and commercial), increase in sums insured, pressure on margins | Rising value of residential and commercial property drives higher sums insured and increases premiums | Sales growth with high profitability, development of tariffs and underwriting, development of new products |
| Non-life insurance sector – motor insurance | Strong competition, increase in average damage, increase in claims ratio | Price growth slowing, repair cost inflation, market profitability declining | Active pricing (price increases), greater risk selection, improved profitability, lower sales growth, decline in market share |
| Weather events | Floods, hailstorms, hurricanes | Extreme weather events reveal a growing insurance gap and affect the frequency and value of claim payments, especially in non-life insurance. At the same time, increased awareness of climate and weather risks may stimulate demand for non-life insurance Locally: higher compensation payments, pressure on tariffs Global: rising reinsurance costs |
Increase in combined ratio and reinsurance program costs |
| Healthcare sector | Rising demand for private care, telemedicine | Revenue growth | Larger scale of operations, increase in number of own and partner outlets, increase in number of contracts, growing importance of remote distribution channels, increase in operational efficiency |
| Banking sector | Deposit inflow, loan growth in both corporate, retail and SME segments | Record profits in the sector | High contribution of Bank Pekao and Alior Bank to PZU Group result |
| Regulations | DORA, AI Act, CSRD/ESRS, AML, Solvency II, MIFID, NIS2 | Need to adjust processes, increased IT, reporting, process, capital requirements | Increased operating costs, increased compliance costs, need to invest in cyber security and IT modernization |
| Technology | Digitization, use of AI | Development of remote sales, tools for quick risk assessment (photo-inspections) and simplified liquidation paths Better risk selection, extortion prevention, faster claims settlement (including mStłuczka in the mObywatel app) | Comprehensive tariff transformation Continued digitization of claims handling processes |
| Internal factors | |||
| Implementation of the strategy for 2025–2027 | Operationalizing the Strategy for 2025 | Continued development activities in the digitization of processes, development of the bancassurance channel, acquisitions in the health area, modernization of systems and making product offerings more attractive, among others | Implementation of strategic goals in accordance with the adopted assumptions |
| Capital reorganization of the PZU Group | Term Sheet – cooperation agreement between PZU and Pekao Bank signed on 26 June 2025 with amendments agreed on 19 December 2025 | Work on a potential merger between PZU and Bank Pekao involves resources on the part of the management boards and both organizations. The intention of the parties is to bring the potential transaction to fruition by 31 December 2027, provided the necessary legislative changes occur by the end of 2026 and come into effect by the end of April 2027. |
Impact on organizational structure and capital requirements according to Solvency II |
| Capital position and dividend policy | Solvency II ratio level | The high level of capitals and strong solvency position enables growth and payment of attractive dividends to shareholders, which is a factor in investors’ perception of the Group. | Payment of PLN 3.86 billion in dividends, or PLN 4.47 per share, which translated into a 9.8% dividend yield |
| Personal changes in the management board | Three changes in the position of the President of PZU | Personnel changes in leadership positions can affect management decisions, organizational culture, strategy and the pace of project implementation | Continued implementation of strategy, greater emphasis on transformation and development |
