Mass insurance – non-life

In 2013, the operating profit in the mass-market non-life insurance segment amounted to PLN 1,067.3 m (a 33.5% increase compared with the prior year). They comprised:

  • a gross written premium of PLN 6,533.7 m, i.e. 1.2% less than in 2012. The motor insurance premium was 3.9% lower than in the prior year, but non-life (mainly agricultural) insurance premiums increased by PLN 81.7 m. However, the premium earned was PLN 6,552.3 m and was 0.6% higher than in the prior year;
  • income from investments allocated at transfer prices to the mass-market insurance segment amounted to PLN 556.8 m (a 3.7% increase compared with the prior year);
  • claims and benefits, as well as changes of technical provisions, which were at a level of PLN 4,193.0 m, dropped by 2.5% compared with 2012. The substantially lower level of disbursements in agricultural insurance (absence of the negative impact of overwintering, frost, lower flood, rain and hail claims), a smaller number of high unit value claims in property covers and a lower loss frequency in TPL motor insurance contributed to the better result that in the prior year. At the same time, PZU paid more motor own damage claims. Additionally, in 2012, the value of claims and benefits included the one-off effect of the decline in the technical rate in the form of an increase in the value of capitalized annuities of PLN 212.8 m. In 2013, the loss ratio amounted to 64.0%, i.e. it decreased by 2.0 p.p. compared with 2012;
  • acquisition expenses amounted to PLN 1,141.5 m, i.e. a level similar to that of the prior year;
  • administrative expenses which amounted to PLN 546.9 m, declined by 3.8% compared with 2012. The main reason for the decline was employment reorganization and restructuring.

A one-off income was recognized in 2013 with regard to a settlement agreement with a reinsurer relating to the Green Card cover at the amount of PLN 53.2 m, because of the operating activities in the mass-market insurance segment (partial reversal of the adjustment of the estimates with the reinsurer which reduced the result in 2011). 

Operating profit of the mass-market segment (in PLN million)


Source: PZU data.