The Polish insurer PZU S.A. on 16 May reported a PLN 1.043 mln first-quarter net profit. Gross written premiums reached PLN 5.83 bln, just below analysts’ expectations.
Profits rose in the life insurance business, increasing EBIT by 13.7% in group life and 4.1% in individual life. Group life, with a modest 0.5% rise in gross written premiums, boosted by sales of group health insurance and strong sales of individual contract continuation. Claims were down y/y to drive the profit gain.
Mass market P&C didn’t fare as well on a 18.6% rise in claims, outpacing premium growth and adding 2 pps to the segment’s combined ratio. Premiums growth was visible across products. The increase in claims is partly attributed to new reserves following the court ruling on the scope of necessary payments on third party liability.
“Such good results give us the basis to share them with shareholders. We also remember our long-term strategic commitment that the dividend per share is to rise year on year in the long term,” PZU CEO Pawel Surowka said in a statement.
A day earlier PZU had said it plans to earmark PLN 2.16 bln for its 2017 dividend, or PLN 2.5 per share.
PZU’s Q1 income included PLN 1.975 bln in investment gains, up 31% year on year, still benefitting from the consolidation of bank Pekao from mid-2017.
