PZU 2017 net profit up at PLN 2.91 bln, above forecasts
Listed insurer PZU increased fourth quarter attributable net profits by 22% to PLN 764 mln, the firm's financial report showed. Profitability improved in the P&C business with the combined ratio for the overall P&C business down 6 pps y/y and 9 pps from Q3 to 87%.
The mass market P&C business improved its combined ratio by 3 pps y/y to 86%. Despite a slower pace of gross written premium growth, net earned premium growth of nearly 19% outpaced a 14% increase in claims and the segment increased its Q4 EBIT contribution by 40% to PLN 376 mln.
The corporate P&C business enjoyed a 7 pps improvement in its Q4 combined ratio to 94% on a continued surge in premium collection: gross written premiums up 29% y/y and net earnings premiums up nearly 25%. Claims rose 20% and the segment ended with a mere PLN 18 mln Q4 EBIT contribution.
The individual life segment continues to grow at a strong double digit pace on gross written premium growth well above 40% y/y. Net insurance claims are rising at a matching pace to put the segment's Q4 EBIT down by nearly 18% y/y to a minor PLN 65 mln.