On 25 June 2018 S&P Global Ratings said that it had assigned its 'A-’ long-term financial strength rating to Poland-based property/casualty insurer Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych (TUW PZUW). The outlook is stable.
The rating reflects S&P’s view of TUW PZUW as a core subsidiary of the Poland-based multiline insurance group PZU. TUW PZUW is the group’s dedicated corporate insurance entity in Poland, its home market.
As a mutual property/ casualty (P/C) insurance company, TUW PZUW is fully owned by the PZU Group. It started operating at the beginning of 2016, underwriting predominantly corporate lines with a clear focus on Polish corporations among other Polish treasury-owned ones, as well as public entities like health care institutions and municipalities. TUW PZUW’s mutual status offers clients profit-and-loss sharing.
TUW PZUW had a market share of about 1% at the end of 2017. However, due to the PZU Group’s dominant position in Poland, with a P/C market share of around 35%, TUW PZUW is relatively small in the overall group context. Consequently, S&P expects TUW PZUW’s gross written premiums to expand substantially to about PLN 500 million (around €120 million) per year in 2018-2020.
Since the agency regards TUW PZUW as a core member of the PZU Group, its rating on TUW PZUW will move in tandem with those on the group’s other core entities. As such, the stable outlook reflects on the PZU Group. They expect that the group will continue to advance its strategy to sustain its business position and the strength and stability of its capital and earnings position.
