Implementation of Strategy 2.0

ObjectiveImplementation of Strategy 2.0 for the years 2012-2014 / summary of actions and achievements in 2013
Business pillars:
Mass-market customer
Profitable maintenance of the position in non-life insurance 1. Operating profit in the mass-market insurance segment in 2013 was 86.1% higher than in 2011.
2. According to the PFSA data, the market leader in the mass-market category after 2013 - 33.0% in motor own damage insurance, 27.3% in TPL motor insurance, and 46.7% in other insurance.   
3. Sales campaigns were conducted on the basis of the sales support tool to which new functionality was added (analytical CRM).
4. The implementation of the new product system was continued (the Everest project). The system will contribute to the flexibility and sophistication of the products and will give the individual distribution channels new functionality. As a part of the pilot program, the first motor insurance policy was issued in November 2013 within phase 1.0 of the Target Policy System.
5. A new PZU sales management model was implemented. It involved preparing new job specifications for the employees in the sales area, training and creating new Sales Areas.
Development of life insurance 1. 132.2% increase in the gross written premium in the individual insurance segment compared with 2011.
2. Work on the activation of a sales support tool (analytical CRM) for PZU Życie was continued.
Building a position in the Investments sector 1. According to the Chamber of Fund and Asset Management (IZFA), TFI PZU ranked first among 38 mutual fund companies in terms of the net asset value of the funds managed. In December 2013, the value of TFI PZU’s assets was PLN 22,217 m, which represented 11.8% of the assets of mutual fund companies.
2. 85.6% growth in the assets of third party customers managed by TFI PZU compared with 2011.
3. With assets of more than PLN 2.2 bn, TFI PZU has remained the market leader in the employee pension program segment among the domestic mutual fund companies.
Group customer
Profitable maintenance of the leadership position in life insurance 1. Operating profit, excluding the conversion effect in the group and continued insurance segment for 2013, was 9.4% higher than in 2011.
2. Consistent growth in the gross written premium (+3.8% compared with 2011) and high profitability of the segment.
3. Sales of new individual continuation agreements for group life insurance continued in 2013.
Development of individual relations (Klub PZU Pomoc w Życiu [PZU Help in Life Club]) 1. The increase in the number of club members to 2.6 m (from just over 2.0 m at the end of 2011), created an opportunity for closer cooperation with customers and the extension of the range of services.
2. The implementation of Klub PZU Pomoc w Życiu at the workplaces of the insured at PZU Życie continued. The range of services and discounts offered by the Klub PZU Pomoc w Życiu is constantly being updated and adjusted to customer needs.
Rapid development of health insurance 1. 47.6% increase in the written premium in group health insurance compared with 2011.
2. 39.6% increase in the number of risks in group health insurance compared with 2011.
3. Work continued on the launch of a new product – the Antybiotyk [Antibiotic] riders to the Individually Continued insurance.
4. Further improvement and development of the outpatient healthcare offering addressed to institutional customers, including further expansion of the network of service providers and improvement in the functioning of the TPA (third party agreement).
The corporate customer
Regaining market position and maintaining profitability 1. Operating profit for 2013 in the corporate insurance segment was 101.4% higher than in 2011.
2. According to the PFSA data, the market leader in 2013 in the category of enterprises and other entities: 43.6% in motor own damage insurance, 49.2% in TPL motor insurance, 18.2% in other insurance.  
Other areas of activity
Effective capital and investment policy 1. PZU’s and PZU Życie’s financial strength rating and credit rating awarded by Standard&Poor ‘s at the “A“ level - one of the highest ratings awarded to companies in Poland.
2. A new PZU Group Equity and Dividend Policy for the years 2013-2015 was adopted, which main objective is to reduce the cost of capital by optimizing the balance sheet structure through the conversion of part of equity to cheaper debt capital, while maintaining a high level of security and development funding.
3. Work aimed at preparing the PZU Group for complying with the regulatory requirements related to the Solvency II Directive continued.
A new international expansion model - PZU International / operations in Central and Eastern Europe 1. Development of operations in the Baltic states - the PZU Group is present in Lithuania; the first policies were sold in Latvia in December 2012 and in Estonia started operations in June 2013.
2. Having a high capital base, the PZU Group is looking for investment opportunities both in Poland and abroad.
3. In 2013, PZU participated in the privatization process of Croatia Osiguranje. The Croatian Ministry of Finance announced its acceptance of the offer from the Croatian company Adris in December 2013.