Reinsurance operations

Reinsurance cover in the PZU Group secures the insurance activity, reducing the consequences of the occurrence of catastrophic phenomena which could adversely affect the financial standing of insurance companies. This task was performed through obligatory reinsurance contracts supplemented with optional reinsurance contracts.

Reinsurance contracts - PZU

PZU uses the reinsurance contracts it concludes to mitigate its exposure to catastrophic losses (e.g. flood, hurricane) among other things through a catastrophic non-proportional excess loss contract and to the consequences of large one-off losses in non-proportional reinsurance contracts protecting property, technical, marine, aviation, TPL and TPL motor insurance portfolios. 

Reinsurance premiums under PZU's obligatory contracts, by Standard & Poor's rating

PZU’s risk is also mitigated through reinsurance of the financial insurance portfolio.

In 2013, the main partners providing obligatory reinsurance cover to PZU were Swiss Re, Hannover Re, Scor, Endurance and Lloyd’s. PZU’s reinsurance partners have high S&P/AM Best ratings, which gives the Company the certainty of the reinsurer’s good financial standing.

PZU’s activity in the area of inward reinsurance constitutes one of the elements of its support for PZU Lietuva and PZU Ukraine. The Company participates both in obligatory and optional reinsurance contracts of the aforementioned companies. In addition, PZU obtains a gross written premium from inward reinsurance from activity on the domestic and foreign market, mainly through optional reinsurance. 

Reinsurance contracts - PZU Życie

Outward reinsurance contracts concluded by PZU Życie protect PZU Życie’s portfolio against the accumulation of risks (catastrophic treaty), protect individual policies with higher sums insured and protect the group child’s serious illness insurance portfolio.

The partners granting reinsurance cover to PZU Życie comprised the following reinsurance companies: RGA, Gen Re, Arch Re and Lloyd’s. PZU Życie’s reinsurance partners have high S&P ratings, which gives the Company the certainty that the reinsurer has a good financial standing.