Insurance revenue
- an increase of PLN 483 million (+10.3% y/y, to PLN 5,187 million) of revenue in the corporate non-life insurance segment – including amortization of the liability for remaining coverage (LRC) (+ PLN 431 million) as a result of higher sales momentum in both motor insurance (growth in average premium and good current year sales, particularly leases) and nonmotor insurance (impact of 2024 premium earning, including from a contract with a power generation customer, and strong sales in 2025, mainly in the strategic customer area). After reinsurance premium allocations, revenues increased by PLN 328 million.
- higher insurance revenue in the Baltics segment (gross revenue growth of PLN 193 million y/y, revenue growth after reinsurance premium allocation of PLN 195 million) as a result of higher sales in the non-life insurance and other life insurance, including non-life and health insurances (greater number of policies), and motor insurance to a lower extent in the Lithuanian market;
- an increase of PLN 126 million (+16.9% y/y to PLN 870 million) in insurance revenue in the individual protection insurance segment as a result of higher contractual margin releases, including in bancassurance and Type J and term insurance, and an increase in premiums written to cover expected claims and benefits as a consequence of growth in the insurance portfolio;
- higher insurance revenue in the group and individually continued life insurance segment (by + PLN 81 million y/y) as a result of a lower level of premiums needed to cover expected claims and benefits (- PLN 97 million) following the expected lower utilization of health insurance benefits, mainly outpatient and paramedical benefits, and a higher level of contractual service margin release in 2025 (+ PLN 167 million y/y) in all insurance groups.
Commission and fee result
- revenue and fees from funds and mutual fund companies – amounting to PLN 750 million, higher by PLN 144 million (+23.8% y/y), including due to a higher level of assets under management;
- pension fund revenue – at PLN 209 million, higher by PLN 25 million (+13.6% y/y), mainly due to an increase in fund management fees through a higher average net value of assets;
Investment result and interest expense
In 2025, investment result including interest expense excluding Pekao Bank and Alior Bank amounted to PLN 3,646 million compared to PLN 2,659 million in the comparable period of the previous year.
- an increase in income from debt portfolios measured at fair value through other comprehensive income as a result of purchasing instruments at high yields in the market as well as actively increasing portfolio yields and last year’s sale of historical tranches at lower yields and reinvestment of funds at higher yields;
- higher result from debt portfolios measured at fair value through profit and loss as a result of higher asset balances and achieving higher yields by taking advantage of favorable market trends;
- higher performance of equity instruments, in particular, due to favorable market conditions, stronger increases in the valuation of Private Equity funds as well as a gain from the sale of some of the stocks in the portfolio;
- higher swap point income, in particular, in the field of commercial real estate.
At the same time, the results generated in the investment activity on the asset portfolio that constitute investment insurance coverage was higher than in 2024, which has no impact on the PZU Group’s total net result, as it is offset by the change in insurance financial income and expenses.
PZU Group’s non-insurance operating expenses
The PZU Group’s non-insurance operating expenses amounted to PLN 11,206 million in 2025, compared to PLN 10,514 million in 2024. The balance change was caused by the following factors:
- higher costs of third-party services, including mainly on banking activities, particularly within the cost of IT services;
- higher fees to the Bank Guarantee Fund by PLN 212 million, the total burden on banks in 2025 increased to PLN 491 million;
- lower charge of the levy on financial institutions (insurance and banking activities combined) from PLN 1,566 million in 2024 to PLN 1,558 million in 2025, due to lower charges on the banking activities resulting from the lower balance of taxable assets (the rate of the levy did not change).
Result on other operating income and expenses
In 2025, the balance of other operating income and expenses stood at PLN 891 million, compared to the balance of PLN 1,043 million in 2024. The balance change was caused by the following factors:
- higher costs due to the creation of provisions for consumer protection issues at Bank Pekao in the amount of PLN 202 million;
- an increase in revenue from the sale of medical services;
- release of impairment allowance in 2024 on assets arising from the acquisition of Alior Bank (i.e., trademark and relations with clients) of PLN 115 million.
Insurance service expenses (PZU Group)
Insurance service expenses amounted to PLN 24,957 million, i.e., decreased by PLN 159 million, i.e., by -0.6%, as compared to 2024. Expenses adjusted for the amounts recoverable from reinsurers increased by PLN 24 million, and this resulted from:
- a decrease in the net insurance service expenses by PLN 246 million in the mass non-life insurance segment, including: − lower net current year claims liabilities by PLN 145 million, mainly in non-motor insurance (there was an above-normal number of mass claims caused by weather events in 2024
- flooding in southwestern Poland in Q3 2024), and in motor insurance it resulted from lower claims cost in MTPL with deterioration in MOD insurance;
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- recognition of a loss component, mainly in the MTPL insurance portfolio, including on the inward reinsurance portfolio with PZU Group companies as a consequence of high claims inflation, though in an amount that does not exceed the amortization from the opening balance sheet. The total excess of depreciation over the creation of the loss component amounted to PLN 87 million (y/y segment change of + PLN 143 million);
- higher y/y acquisition expenses (+ PLN 58 million y/y) mainly as a result of expanding the insurance portfolio and higher share of non-motor insurance in the portfolio;
- lower net insurance service expenses in the investment life insurance segment by PLN 95 million, including as a result of changes in partial redemption assumptions and expenses in the IKE product translating into a decrease in the loss component impacting the insurance service result of + PLN 43 million (+PLN 86 million y/y);
- net insurance service expenses lower by PLN 5 million in the corporate non-life insurance segment as a result of releasing higher net excess of prior years’ loss reserves over the current projected value and higher current year loss liabilities (in both non-motor and motor insurance) as well as higher amortization of acquisition costs;
- net insurance service expenses higher by PLN 71 million, including liabilities for current year claims, costs including amortization of insurance acquisition cash flows in the individual protection life insurance segment;
- claims and benefits with the development of the loss reserve higher by PLN 102 million from previous years in the group and individually continued life insurance segments, as a result of continued high utilization of health insurance benefits as well as higher cost of claims in other group insurance (for instance, impact of expanding the portfolio), and higher amortization of acquisition costs;
- liabilities for the current year’s claims in the Baltic countries segment higher by PLN 92 million as a result of an increase in the value of the portfolio and amortization of acquisition costs by PLN 43 million;
- higher administrative expenses attributable to insurance operations due to increased personnel costs (impact of salary increases), higher IT costs due to the development of the IT area and building competencies in the area of system maintenance.
Insurance finance income and expenses from PZU Group insurance
The insurance finance income or expenses in 2025 were - PLN 2,023 million, as compared to - PLN 1,565 million in 2024 (and together with the finance revenue and expenses on the reinsurance activities, respectively, - PLN 2,043 million and - PLN 1,425 million).
The increase in expenses was influenced in particular by the increase in the value of investments at policyholder risk in the investment insurance segment and the effect of changes in interest rates on the effect of shortening the discount period.
Costs of legal risk of mortgage loans in foreign currencies
The cost of legal risk of mortgages in foreign currencies increased from PLN 729 million in 2024 to PLN 819 million in 2025 and the change in their balance was mainly related to Alior Bank. Additional costs were recognized in 2025 mainly due to an update of the expected financial impact of court judgments and a forecast of a future influx of lawsuits from borrowers.
Drivers and atypical events affecting the results
In 2025, the PZU Group’s result was burdened by nonrecurring effects related to banking activities:
- legal risk costs of foreign currency mortgage loans at Bank Pekao of PLN 664 million, and Alior Bank of PLN 155 million;
- recognition of provisions for consumer protection issues at Pekao of PLN 202 million;
- revaluation of the level of deferred tax assets and deferred tax liabilities at Bank Pekao and Alior Bank (due to an increase in income tax rates for the banks, which will be 30% in 2026, 26% in 2027 and 23% from 2028) with an impact on net income of PLN 179 million and PLN 95 million, respectively.
| Insurance segments (PLN million) | Insurance revenue | |||
|---|---|---|---|---|
| 1 January – 31 December 2022 PLN million |
1 January – 31 December 2023 PLN million |
1 January – 31 December 2024 PLN million |
1 January – 31 December 2025 PLN million |
|
| TOTAL | 24,745 | 26,868 | 29,423 | 30,882 |
| Total Non-life insurance – Poland | 14,429 | 16,067 | 17,810 | 18,842 |
| Mass insurance – Poland | 10,981 | 11,966 | 13,106 | 13,655 |
| MTPL | 4,139 | 4,303 | 4,558 | 4,578 |
| MOD | 2,866 | 3,308 | 3,685 | 3,726 |
| Other products | 3,976 | 4,355 | 4,863 | 5,351 |
| Corporate insurance – Poland | 3,448 | 4,101 | 4,704 | 5,187 |
| MTPL | 638 | 651 | 642 | 740 |
| MOD | 788 | 930 | 1,012 | 1,072 |
| Other products | 2,022 | 2,520 | 3,050 | 3,375 |
| Total life insurance – Poland | 7,986 | 8,092 | 8,688 | 8,892 |
| Group and individually continued insurance – Poland |
7,316 | 7,362 | 7,840 | 7,921 |
| Individual insurance – Poland | 581 | 637 | 744 | 870 |
| Investment insurance – Poland | 89 | 93 | 104 | 101 |
| Total Non-life insurance – Ukraine and the Baltic Countries |
2,238 | 2,629 | 2,852 | 3,076 |
| Ukraine – non-life insurance | 198 | 184 | 215 | 250 |
| Baltic Countries – non-life insurance | 2,040 | 2,445 | 2,637 | 2,826 |
| Total life insurance – Ukraine and Baltic Countries | 92 | 80 | 73 | 72 |
| Ukraine – life insurance | 50 | 36 | 27 | 22 |
| Baltic Countries – life insurance | 42 | 44 | 46 | 50 |
In 2024, the PZU Group’s result was burdened by a nonrecurring effect related to an above-normal number of mass damage caused by atmospheric events, mainly flooding, with a total impact on result from operating activities of – PLN 259 million.
Moreover, in the same period, the PZU Business Group’s result was burdened by non-recurring effects related to banking activities:
- legal risk costs of foreign currency mortgage loans at Bank Pekao of PLN 669 million;
- costs related to the modification of agreements for PLN mortgage loans granted to consumers due to their suspension of loan repayments (so called “moratorium periods”), of PLN 153 million at Pekao Bank and PLN 62 million at Alior Bank;
- release of impairment loss on assets arising from the acquisition of Alior Bank (i.e., trademark and relations with clients) of PLN 115 million.
