The Strategy of the PZU Group for 2025–2027 was adopted on 2 December 2024, and is focused on four pillars: simplicity, focus, development, and engagement. For the PZU Group, simplicity means simplifying the structure and strengthening operational efficiency. The focus is to ensure profitable growth of the insurance business. Development relates to investment in health market, digitization and offerings developed with partners. Engagement is about building the Poland’s resilience and inclusive society.

The PZU Group set the following ambitions until 2027:

>6.2
PLN billion
net profit
>19
%
ROE from core business*
40
%
EPS growth from core business**
90
%
COR in non-life insurance***
>20
%
operating margin in life insurance

*  ROE – Return on Equity, calculated on core business, i.e. excluding banks
** EPS – Earnings per Share, calculated on core business, i.e. excluding banks
*** COR – Combined Ratio (mixed ratio), mass and corporate segments combined, all products

Financial objectives are also reflected in the nonfinancial dimension:

  • Highest NPS on the market in products and service;
  • 8 million clients in mojePZU digital channels;
  • Taking care of physical health and mental wellbeing of children and adults;
  • Inclusive and transparent sponsorship, prevention and education programs;
  • Common solutions implemented in cooperation with the market.

The ambitions adopted until 2027 will be implemented in the strategy horizon in each business line under four pillars: simplicity, focus, development, engagement.

Simplicity

The PZU Group is focusing on efficiency by simplifying its organizational structure, which will increase efficiency and agility.

Operational efficiency

The PZU Group is building an organization in a structure that allows it to prioritize client needs.

PZU measures in terms of operational efficiency:

  • adjusting the organizational structure to provide greater autonomy and agility for business units;
  • simplifying processes to accelerate change implementation, enable optimization and automation, and enhance profitability management;
  • streamlining the structure of banking assets within the Group to ensure transparency and efficient capital management;
  • building synergy in insurance and investment companies.

Key objective for 2027

PLN 400 million increase in efficiency thanks to synergies of simplifying the Group’s asset structure and organizational structure.

Focus

The PZU Group is focused on increasing the profitability of its core insurance business.

PZU’s position and market context – PZU is a leader in mass property insurance, with ~32% share of premiums and ~47% in technical result.1 The non-life insurance market in Poland is on an upward trend, but profitability, particularly in the motor third-party liability insurance segment, remains a significant challenge.

Identified strategic objectives and actions to support profitable growth:

  • achieving technical and operational excellence with advanced pricing models, models based on behavioral and climate data, and competence centers in the areas of product, pricing, and claims handling;
  • disseminating the offer across all channels through a profitable distribution presence and a new value proposition for own channels;
  • active management of brands as a result of a multibrand strategy covering all client segments.

Key objectives for 2027

  • >30% increase in insurance revenue2
  • <90% combined ratio (COR)3

1 Includes both the mass and corporate segments in terms of direct business; figures adopted in developing strategic assumptions Source: KNF, as of the end of 2Q 2024
2 Applies to non-life insurance in the mass segment excluding bancassurance products
3 COR – Combined Ratio (mixed ratio), mass and corporate segments combined, all products

Strong growth of the PZU Group in the rapidly growing corporate insurance market.

PZU’s position and market context – PZU Group is a leader in the business insurance market with a share of ~37%, 18% average annual growth against a market with 13% growth.4

Activities that support strategic objectives based on profitable growth and building client relations:

  • making results independent from the impact of underwriting cycles through technical and operational excellence with better use of data in pricing and unified risk assessment and client data analysis, also through automation;
  • building a unique value proposition for clients as well as agents and brokers based on the development of new and existing products and services: iFlota, RiskPRO, Process Safety Management (PSM);
  • automation of sales and service processes using new technologies and GenAI to streamline sales processes (e.g., sales support via chat) and fast claims handling system.

Key objectives for 2027

  • >25% increase in insurance revenue
  • <90% combined ratio (COR)

4. As at 2023; figures adopted in developing strategic assumptions

A leader that sees potential in changing demographics.

PZU’s position and market context – PZU is a leader in the life insurance market, with ~42% share of premiums, ~33% share of APE and perceived highest potential for value creation in the baby boomer and silver generations, who expect more from financial institutions.5

Strategic priorities define key directions to strengthen the market leadership position:

  • making the offer more attractive and adjusting it to the needs of changing demographics as a result of maintaining client portfolios and increasing profitability in group insurance by redefining the value proposition: new life, health, sports and other benefit products, and focusing activities around the baby boomer and silver generations;
  • increasing conversion from group insurance to individual insurance as a result of the development of digital and hybrid sales and service processes for individual follow-up;
  • simplifying the retail client base through x-sell growth – new products and active sales activities;
  • improving the efficiency of distribution channels with the support of programs to increase the effectiveness and develop the competence of the sales network.

Key objectives for 2027

  • >35% new business value growth6
  • >20% operating margin

5. Source: KNF, PIU; as at the end of Q2 2024. Shares calculated with respect to regular premium insurance; figures adopted in developing strategic assumptions
6. New business under IFRS 17 measurement for life insurance in Poland – defined as CSM contractual service margin less loss component for insurance contracts entered into during the period, measured at the time of contract recognition

Growth potential in the fastest-growing segment of unrelated protection products.

PZU’s position and market context – in investment insurance, a leadership position built through solid asset management and stable premium growth, despite market trends. In unrelated protection products, significant untapped potential PZU addressed by expanding offerings. In related protection products, the position is close to the shares of PZU Group banks, and has the potential to grow to the level of bancassurance business leaders.

Operational activities based on stable growth, expansion of offerings and omni-channel model:

  • a new approach to offering insurance linked to bank products through premiums spread over the entire coverage period, giving stable growth and greater availability and value of products for the client;
  • expanded offering of unrelated protection insurance and services, as well as savings and investment products using new and modified products and tailoring on the basis of client knowledge and comprehensive life, health and asset protection offerings for every stage of life;
  • omnichannel distribution and service model with the support of simplified digital and hybrid insurance sales processes as well as personalization of offerings and communications, reaching a broad client base.

Key objectives for 2027

  • +50% increase in the number of insured clients in the PZU Group banks
  • 4x higher written premium in unrelated protection products

Development

The PZU Group is developing and promoting a digital service model, entering new local and international markets through digital channels and partnerships. It is also investing in the health market.

Growth in a huge market, in the fastest-growing categories.

PZU position and market context – PZU Group with a strong position in the private healthcare market in Poland. Group’s segments (subscriptions and insurance) with expected +10-15% average annual growth over the Strategy horizon7.

Operational activities to consistently build a leadership position:

  • improving quality for clients through technology infrastructure that sets the best market standards as a result of the streamlining of digital customer pathways in mojePZU and the development of multichannel, digitalization of business processes and optimization of medical systems;
  • improving profitability through an efficient business and operating model by increasing the use of own facilities (target ~60% share) and improving the terms of cooperation, with partner facilities (integration of systems and closer cooperation);
  • growing the revenue from a wide range of services and being present in the most attractive segments as a result of increasing the share of “fee-for-service” products in sales to ~20% and realizing the potential of cooperation with the public payer (NHF).

Key objectives for 2027

  • >PLN 3 billion in revenue (>60% growth)
  • 2x higher EBITDA operating result

7 Source: OECD, Economist Intelligence Unit, PMR

Broader offerings for external clients and support for green transition.

PZU’s position and market context

The PZU Group is a key investor in Poland, with a broad value proposition for clients, and PLN 111 billion8 in assets under management.

Directions of action and strategic objectives:

  • Increasing the PZU Group’s exposure to green transformation as a result of increased investment in the debt financing segment;
  • Increasing the Group’s exposure to innovation and technology through increased investments in the alternative funds segment;
  • Expanding product offerings for external clients by creating an asset management service for businesses and an alternative investment fund for external clients.

Key objectives for 2027

  • >PLN 49 billion in third-party client assets at TFI PZU (up +50%9);
  • PLN 3 billion in new investments in green transition and innovation.

8 Source: OECD, Economist Intelligence Unit, PMR
9 Compared to data at the end of 3Q 2024

mojePZU as a comprehensive digital channel and client relations center.

PZU’s position – 4.9 million users of mojePZU, 40 million logins during the year, PLN 650 million of premium from direct and hybrid sales, 560 thousand reported claims and benefits10.

Strategic objectives and actions:

  • Reaching 8.0 million mojePZU users (CAGR of 18%) and 60 million logins by 2027 (CAGR of 15%);
  • Strengthening the role of mojePZU through the availability of key client pathways, supporting the omnichannel sales model and aligning functions with broader sales needs and increasing “productization” of clients.

10 Data as of the moment of developing the strategic assumptions

New levels of operational excellence and innovation.

PZU’s position – PZU has an advanced CRM that leverages 360 view data for the customer and agent,aggregates data from all channels, and provides the ability to implement joint analytical projects with PZU Group banks.

PZU also cooperates with startups – cooperation within the PZU Ready for Startups platform has already brought a total of >PLN 200 million in additional profit with 76 completed projects.

Strategic objectives and actions:

  • Building a next-generation interactive CRM that enables real-time hyper-personalization and proactive relations management;
  • Ensuring PZU Group’s consistent transformation using AI as a result of technology scaling and the introduction of an AI solution in pricing, as well as a major pilot of AI Assistant;
  • Developing the PZU Ready for Startups platform for collaboration, reaching out to a wider group of perspective startups and supporting them to implement innovations.

Stabilizing relationships with major players in key markets and development of contextual offerings.

PZU’s position – leader in the embedded insurance market.11 PZU is present with partner offerings in the sector, among others:

  • energy, offering more than 60 assistance services; tourism, offering travel insurance with dynamic pricing in ticket reservation system;
  • telecommunications, combining smartphone service with insurance;
  • commerce, providing insurance packages for electronic devices, integrated within the API.

Strategic objectives and actions

  • increasing the number of strategic partners as a result of focusing on key markets:financial services, automotive, tourism, real estate development, home appliances, electronics, e-commerce;
  • developing employee benefits by expanding the offer to include the full range of benefits existing on the Polish market;
  • creating a wellbeing ecosystem as a result of expanding the offer with a PZU Sport subscription and an ecosystem of complementary services, i.e.: psychological, dietary, recovery, supplementation, physiotherapy, and physical activity support.

11 Position in terms of gross written premiums

The PZU Group is now present in five Central European countries, with further development in light expansion model.

PZU’s position – experience in the region thanks to the presence of the PZU Group in 5 countries of Central and Eastern Europe. Well-established active reinsurance competencies, ~PLN 1.4 billion of written premiums from inward reinsurance in 2023.

Strategic objectives and actions

  • Developing international competence and exploring new markets
  • PLN 500 million of additional revenue from active reinsurance outside the Group by 2030.12

12 Not including reinsurance within the PZU Group – in Poland and abroad

Engagement

The PZU Group is building social resilience to a volatile and uncertain future through education and building confidence in insurance on a daily basis, leading to its universalization and democratization.

PZU, in cooperation with banks, offers a full catalog of solutions to support the green transformation.

Corporate insurance area:

  • Products adequate at the investment stage, including engineering and specialized ones;
  • Post-project non-life insurance, including TUW.

Capital investment area:

  • Stocks and bonds of companies specializing in green transition;
  • Green government bonds;
  • Loans for green investments;
  • Investments in BREEAM-certified buildings.

Debt financing area:

  • Project finance and structured financing of green investment projects;
  • Targeted loans for investments.

Guarantee area – insurance and banking solutions to secure transactions between contractors in green investments, e.g., due performance, remedy of defects, payment of bid bonds, timely payment of receivables.

Building solutions for clients and market development, in partnership with key players.

mInsurance Service – introduction of insurance services on common platforms, such as mStłuczka solutions within mObywatel, to increase client convenience by standardizing and digitizing the handling of motor claims.

Insurance Data Ecosystem – using and sharing data in the ecosystem, e.g., Insurance Databases, containing information on non-life and life insurance, allowing for advanced analysis of concluded contracts and reported claims.

Support tools – developing tools to improve market efficiency, e.g., FOTO for countering claim scams from motor insurance using automatic image recognition technology.

Strategic objectives:

  • Building the best solutions and value for clients;
  • Increasing insurance awareness among Poles;
  • Building a positive perception of the insurance industry.

Building trust and a friendly image of a socially engaged brand.

Sponsorship and prevention activities:

  • Promoting a healthy and active lifestyle;
  • Building healthy and safe social attitudes;
  • Cooperating with public services: police, fire brigades;
  • Supporting emergency services: GOPR, WOPR;
  • Campaigns and projects implemented jointly with the ministries of health, education, sports.

PZU Foundation:

  • Building competencies of the future, including critical thinking, defense against disinformation;
  • Creating spaces for community integration and dialog;
  • Modern philanthropy, inspiring action;
  • Education and talent promotion;
  • Building a society that is resilient to the challenges of the current times through initiatives in the areas of health, education, reducing vulnerability to misinformation.

Key objectives for 2027

  • 15 million people each year covered by PZU’s activities in the field of corporate social responsibility13

13 Activities under the 4 operational objectives “Safe on the road,” “Safe in health,” “Safe in action,” and “Safe at home and business”

PZU is enhancing agile capabilities and developing competencies to drive the Group’s growth. Strong brand and HR competence make the PZU Group an attractive place to work:

  • Employee satisfaction in the area of people management and inclusiveness and cooperation, 4–6 p.p. above market average;
  • Good position in the pay market and GPG ratio (Gender Pay Gap) of 95%;
  • ~2.5 x lower turnover, 4x higher return rate than on the market;
  • Space to develop skills and gain diverse experience.

The HR strategy will focus on:

  • Accountability for results through comprehensive performance management and ensuring optimal development of people and the organization;
  • Development of supportive leadership and distinctive employee experiences;
  • Inclusive organizational culture that supports agile operations, autonomy and employee innovation;
  • Delivery of tomorrow’s competencies, crucial from a strategic perspective, including for international expansion.

Bank assets

One of the priorities of the strategy is to ensure the optimal structure of the PZU Group, including addressing the identified challenges associated with the banks under its control:

  • Lower attractiveness for investors and discount in measurement as one of the few insurance groups in Europe directly controlling two competing banks;
  • Complexity of direct supervision over two competing entities and failures to achieve synergies between entities operating in the same industry within the Group;
  • Large capital concentration on the Polish banking sector, with a large stake in two entities within the sector – greater risk;
  • suboptimal use of capital.

In early December 2024, a letter of intent was signed between PZU and Pekao to analyze various strategic options for the merger, taking into account the impact on Group capitals, the external environment, potential synergies and integration costs.

  • transparent structure that increases attractiveness to shareholders;
  • simplified Group governance model;
  • effective capital management;
  • ability to generate value through bank complementarity.
  • developing strategic partnerships in Poland and abroad, including distribution, bancassurance and embedded insurance;
  • strengthening the health area;
  • participating in financing the transformation of the Polish economy.

Financial ambitions

In the strategy horizon, thanks to its focus on core business, the company assumes:

  • an increase of PLN 7.5 billion in insurance revenues to PLN 36.2 billion;
  • 40% increase in EPS from core business to >PLN 5.1;
  • increase by 2 p.p. ROE from core business to >19%.

All this with good cost efficiency and high solvency:

  • <90% Combined ratio (COR) in non-life insurance;
  • >20% life insurance operating margin;
  • >190% Solvency II.
Previous topic
Predictions
Next topic
Implementation of the strategy in 2025