PZU 2Q 20 - Stellar insurance operations compensate top line decline
PZU´s 2Q results were characterized by Covid-19 related trends and impacts, which were especially visible in gross written premiums, declining by 5.8% yoy (vs. RCBe -2.8% and cons. -2.1%) mainly driven by significantly lower sales in motor insurance. Nevertheless, disregarding the previously announced banking impairments of EUR 827 mn the results were stellar, net profit net of impairments coming in at EUR 1,101 mn (vs. PLN 734 mn in 2Q 19, RCBe PLN 862 mn, cons. PLN 885 mn). Including impairments net profit was also ahead of expectations at PLN 170 mn (vs. RCBe 35 mn, cons. PLN 58 mn). The primary driver for the strong result was significantly better than anticipated investment income from insurance operations, a record life-margin and an improvement in the combined ratio.Powszechny Zaklad Ubezpieczen is an insurance group based in Poland. Co. is engaged in offering a broad range of insurance and financial products. Co. pursues three main lines of business: Property and Casualty Insurance, offered by PZU; Life Insurance, offered by PZU Zycie; and Open-end Pension Funds, offered by PTE PZU, the manager of OFE PZU Zlota Jesien. Co. maintains a network of sales and service outlets including 500 outlets throughout Poland, including 243 shared outlets (common for PZU and PZU Zycie), 137 outlets of PZU Zycie and 120 outlets of PZU. Co.'s business is focused on the Polish market but it also conducts insurance business in the Lithuanian and Ukrainian markets.
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