trending Market Intelligence /marketintelligence/en/news-insights/trending/zpue8-086fh_avka8g9lpg2 content esgSubNav
In This List

PZU Q1 profit drops YOY as 'worse conditions' on Warsaw bourse hurt investments

Blog

The Big Picture 2022 Insurance Industry Outlook

Podcast

Next in Tech | Episode 37: Insurance impacts on technology and vice versa

Case Study

A Prestigious Global Business School Gains a Competitive Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage


PZU Q1 profit drops YOY as 'worse conditions' on Warsaw bourse hurt investments

PZU SA reported first-quarter net profit attributable to equity holders of the parent company of 640 million Polish zlotys under International Financial Reporting Standards, down from the year-ago restated 940 million zlotys.

EPS for the quarter stood at 74 groszy, compared to 1.09 zlotys a year earlier.

Return on equity for the quarter stood at 17.6%, down 10.3 percentage points from the year-ago period.

The Polish insurer noted that operating income of the investment segment, based exclusively on external transactions, were 404 million zlotys less than in the corresponding period of 2017, mainly due to "the worse conditions on the Warsaw Stock Exchange."

Gross written premiums amounted to 5.83 billion zlotys in the period, up from 5.77 billion zlotys in the first quarter of 2017. Net written premiums increased on a yearly basis to 5.78 billion zlotys from 5.68 billion zlotys, while net earned premiums reached 5.46 billion zlotys, up from 5.07 billion zlotys a year ago.

Net investment income rose year over year to 2.89 billion zlotys from 1.37 billion zlotys.

Net insurance claims and benefits narrowed to 3.63 billion zlotys in the first quarter from the year-ago 3.71 billion zlotys.

First-quarter profit declined to 385 million zlotys from 395 million zlotys in the mass insurance nonlife segment, as a result of re-measurement of provisions for claims for general damages. The combined ratio, a measure of underwriting profitability, in the business was 86.5%, compared to 84.9% in the year-ago period, while the loss ratio increased to 62.7% from 59.3%.

The corporate insurance nonlife business posted first-quarter result of 140 million zlotys, up from the year-ago 51 million zlotys, while results in the group and individually continued insurance and individual insurance life businesses rose on a yearly basis to 290 million zlotys from 255 million zlotys and 51 million zlotys from 49 million zlotys, respectively.

As of May 15, US$1 was equivalent to 3.62 Polish zlotys.