Key factors affecting the financial results achieved

The PZU Group achieved profit before tax in 2013 at a level of PLN 4,120.7 m compared with PLN 4,038.7 m in the prior year (increase of 2.0%). Net profit attributable to the shareholders of the parent company amounted to PLN 3,293.7 m, compared with PLN 3,255.2 m in 2012 (a 1.2% increase).

The following factors had a key impact on the PZU Group’s financial results in 2013:

  • an increase in gross written premium. It amounted to PLN 16,480.0 m, i.e. an increase of 1.5% compared with the prior year. After accounting for the share of reinsurers and the change in the provision for unearned premium, the net premium earned amounted to PLN 16,248.8 m, which was 1.5% higher than in 2012;
  • a decline in the net result on investing activities. The net result on investing activities amounted to PLN 2,488.1 m, i.e. it was 32.8% lower than in 2012, mainly because of the decline in prices of treasuries compared with the prior year, when the prices for these securities were high. This decline was partly offset by the one-off income on consolidation of mutual funds of PLN 172.8 m, which was included in the net result on investing activities;
  • the one-off profit before tax on the settlement agreement with the reinsurer on the Green Card insurance of PLN 53.2 m (PLN 73.3 m was recognized in other operating income and expenses);
  • maintenance of cost discipline in the area of administrative and acquisition expenses. These amounted to PLN 3,422.4 m in total and, because of the lower administrative expenses, were at the same level as in 2012;
  • the decline in claims and benefits. Claims and benefits amounted to PLN 11,161.2 m, which is a decline of 8.7% compared with 2012. Additionally, in 2012, technical provisions increased significantly as a result of a one-off change in technical rates. The total negative impact of this operation on the PZU Group’s profit before tax in 2012 amounted to PLN 1,032.8 m.

Operating result of the PZU Group in 2013 (in PLN million)

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Basic amounts from the consolidated income statement