In 2017, the PZU Group collected gross premiums of PLN 22,847 million or 13.0% more than in 2016.The individual segments recorded the following figures:
Net revenues from commissions and fees
Net revenues from commissions and fees in 2017 contributed PLN 1,784 million to the PZU Group’s result, or were PLN 1,240 million higher than in the previous year, mainly caused by the commencement of Pekao’s consolidation.
They included mainly:
Insurance segments (PLN millions), local GAAP
|Insurance segments (PLN millions), local GAAP||Gross written premium (external)|
|TOTAL||22 847||20 219||18 359||16 885||16 480|
|Total non-life insurance – Poland (external gross written premium)||12 702||10 878||9 074||8 367||8 269|
|Mass insurance – Poland||10 029||8 742||7 309||6 560||6 534|
|Motor TPL||4 606||3 635||2 594||2 373||2 453|
|Motor own damage||2 406||2 147||1 728||1 579||1 549|
|Other products||3 017||2 960||2 987||2 608||2 531|
|Corporate insurance – Poland||2 673||2 136||1 765||1 807||1 735|
|Motor own damage||848||712||509||461||479|
|Other products||1 090||892||888||992||885|
|Total life insurance – Poland||8 519||7 949||7 923||7 808||7 745|
|Group and individually continued insurance – Poland||6 855||6 775||6 689||6 539||6 415|
|Individual insurance – Poland||1 664||1 174||1 234||1 269||1 330|
|Total non-life insurance – Ukraine and Baltic States||1 527||1 304||1 288||632||388|
|Ukraine non-life insurance||181||173||138||133||157|
|Baltic States non-life insurance||1 346||1 131||1 151||499||230|
|Total life insurance – Ukraine and Baltic States||100||88||74||78||78|
|Ukraine life insurance||42||37||31||41||47|
|Baltic States life insurance||58||51||43||37||32|
Structure of gross written premium at PZU Group (%)
Net investment result and interest expenses
In 2017, the PZU Group’s investment activity focused on the continuation of strategic assumptions, in particular on the optimization of profitability of investment operations through greater diversification of the investment portfolio, as well as ensuring financing for the transaction of PZU’s acquisition of an equity stake in Bank Pekao.
In 2017, the PZU Group’s net investment result was PLN 8,502 million compared to PLN 3,511 million in 2016 (up 142.2%). This higher result was caused largely by the commencement of Pekao’s consolidation.
The net investment result (after factoring in interest expenses and precluding the impact exerted by banking activity) in 2017 was PLN 1,855 million. It was higher than last year’s result by PLN 638 million, which was primarily due to the following drivers:
Movement in net investment result after factoring in interest expenses and factoring out the impact of banking operations (PLN million)
As at the end of 2017, the value of the PZU Group’s investment portfolio, excluding the impact of banking activity, was PLN 46,164 million compared to PLN 50,488 million as at the end of 2016. The drop in the balance of deposits was driven in particular by the funding of PZU’s acquisition of the equity stake in Bank Pekao.
The Group runs its investment operations in compliance with statutory requirements while maintaining appropriate levels of safety, liquidity and profitability. Debt treasury securities accounted for over 60% of the investment portfolio, net of the impact of banking activity, both as at 31 December 2017 and 31 December 2016. The increase in the volume of non-treasury debt market instruments resulted from the persistently implemented investment policy aimed at achieving a greater diversification of the investment portfolio. The lower level of monetary market instruments is associated with funding the acquisition of the equity stake in Pekao.
Result on other operating income and expenses
In 2017, the balance of other operating income and expenses was negative and stood at PLN 1,559 million, compared to the balance in 2016, which was also negative at a level of PLN 724 million. The following contributed to this result:
1 The investment portfolio includes financial assets (including investment products net of loan receivables from clients), investment property (including the portion
presented in the class of assets held for sale), the negative measurement of derivatives and liabilities under sell-buy-back transactions.
Structure of the portfolio of investments net of the impact of banking activity* (%)
* Derivatives linked to interest rates, foreign currencies and securities prices, respectively are presented in the categories: Debt market instruments - treasury, money market instruments and listed and unlisted equity instruments.