Powszechny Zaklad Ubezpieczen Spolka Akcyjna · GPW:PZU
Powszechny Zaklad Ubezpieczen Spolka Akcyjna — Powszechny Zakład Ubezpieczeń SA (PZU) — Q1 2010 Earnings Presentation
21 slides from Powszechny Zaklad Ubezpieczen Spolka Akcyjna's earnings presentation, May 17, 2010
Slide 1: PZU 1Q 2010 Results
PZU 1Q 2010 Results 17 May 2010
Slide 2: Summary
Summary • PZU’s financial results for the first quarter 2010 were materially impacted by extraordinary effects. • GWP decreased by 1.6% compared to the first quarter of the previous year, driven mainly by lower sales in the non- life segment, partially offset by growth in life insurance. • The retur
Slide 3: PZU 1Q 2010 financials at a glance
PZU 1Q 2010 financials at a glance Gross Gross written written premium premium Net Net result result PLN m PLN m Shareholder Shareholder equity equity Return Return on on equity equity PLN m % PZU Group: 1Q 2010 Results 2
Slide 4: Key financials overview
Key financials overview PLN m, IFRS 1Q 2009 1Q 2010 Y-o-Y change Income statement GWP 3,992 3,928 (1.6%) Acquisition and administration expenses (868) (824) (5.1%) Operating profit 1,433 1,029 (28.2%) Net profit 1,145 807 (29.5%) Balance sheet Shareholders’ equity 21,018 12,053 (42.7%) Total Assets
Slide 5: Gross written premiums by segment
Gross written premiums by segment Gross written premiums by segment (1) PLN m PLN m (2) 1Q 2009 1Q 2010 1Q 2009 1Q 2010 Comments • Gross written premiums in 1Q 2010 declined by 1.6% over 1Q 2009 • The change in non-life GWP in 1Q 2010 is a consequence of decrease in corporate motor sales due to PZU’
Slide 6: Non-Life premium volume affected by restructuring of corporate motor
Non-Life premium volume affected by restructuring of corporate motor Gross Gross written written premium premium – – corporate corporate clients clients Gross Gross written written premium premium – – mass mass clients clients PLN m PLN m Gross Gross written written premium premium – – other other G
Slide 7: Life premium volume
Life premium volume Gross Gross written written premium premium – – group group insurance insurance Gross Gross written written premium premium – – individual individual continued continued insurance insurance PLN m PLN m Gross Gross written written premium premium – – other other individual individ
Slide 8: Operating profit by segment
Operating profit by segment Operating profit by segment PLN m (1) 1Q 2009 1Q 2010 Comments • Consolidated operating profit was PLN 404,1 m (28,2%) lower than previous year. • In non-life segment increase of claims and benefits net of reinsurance mainly as a result of atmospheric conditions – long wi
Slide 9: Non-life profitability
Non-life profitability Non-life profitability COR (%) Comments • Increase of acquisition cost ratio due to changes in product mix (products with higher commission fees) and to changes in agents’ incentive program. • Decrease of administration costs ratio thanks to restructuring of employment in PZU
Slide 10: Life profitability
Life profitability Main components of life segment operating profit PLN m Comments • Increase of net earned premiums by 3,8% due to development of group insurance as well as of life insurance with single premium distributed by banks and of individual continuations. • Increase of net claims of PLN 57
Slide 11: Costs restructuring status update
Costs restructuring status update Administration Administration expenses expenses • Decrease of PZU Group administration expenses in 1Q 2010 was result of cost PLN m saving initiatives realized in PZU Group entities, incl. i.a. employment restructuring program in PZU SA and PZU Życie SA headquarters
Slide 12: Strong capitalization
Strong capitalization Own Own funds funds and and solvency solvency margin margin coverage coverage PZU PZU SA SA (PAS) (PAS) Own Own funds funds and and solvency solvency margin margin coverage coverage PZU PZU Życie Życie SA SA (PAS) (PAS) PLN m, % PLN m, % 1,331.5% 617.1% 686.0% 379.3% 440.8% 502
Slide 13: Asset structure overview
Asset structure overview Q1, 2009 (IFRS) Q1, 2010 (IFRS) Structure in % Structure in % Total: PLN 53,841.3 mln Total: PLN 47,409.5 Comments • An increase of equity instruments share in 1Q 2010 investment portfolio due to their value increase (mainly listed shares). • Significant decrease of investme
Slide 14: Investment income
Investment income Investment income PLN m 1Q 2009 1Q 2010 Comments • Decrease of net income from investments results from lower interest incomes which in turn resulted from 1PLN 2,75 billion interim dividend from 2009 net result paid by PZU in November 2009. • Increase of realized gains as well as i
Slide 15: Appendix 1: IFRS Financials – PZU Group
Appendix 1 IFRS Financials – PZU Group PZU Group: 1Q 2010 Results 14
Slide 16: Consolidated financial results
Consolidated financial results For the three months ended March 31 PLN thousands (unaudited) 2010 2009 Gross written premiums 3,927,789 3,992,173 Net earned premiums 3,444,564 3,614,264 Fee and commissions income 62,632 79,885 Net income from investments 442,309 678,427 Realized gains and losses and
Slide 17: Financial results by business segments
Financial results by business segments Income statement by business Unallocated Non - Life Life Pension funds (consolidation eliminations Consolidated segments and other) For the three months ended March 31 PLN thousands (unaudited) 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 Gross written pre
Slide 18: Consolidated balance sheet
Consolidated balance sheet As at March 31 PLN thousands (unaudited) 2010 2009 Equity 12,053,249 21,018,295 – net profit (loss) attributable to the equity holders of the parent company 807,415 1,144,648 Financial assets 47,409,523 53,841,290 Other assets 5,098,278 4,993,028 Total assets 52,507,801 58
Slide 19: Appendix 2: PAS Financials – PZU SA
Appendix 2 PAS Financials – PZU SA PZU Group: 1Q 2010 Results 18
Slide 20: Income statement of PZU SA (PAS)
Income statement of PZU SA (PAS) For the three months ended March 31 PLN thousands (unaudited) 2010 2009 Gross premium written 2,268,168 2,380,216 Net premium earned 1,786,366 2,003,787 Claims and benefits 1,329,753 1,131,984 Insurance activity costs 504,544 482,178 Acquisition costs * 306,941 256,1
Slide 21: Balance sheet of PZU SA (PAS)
Balance sheet of PZU SA (PAS) As at March 31 PLN thousands (unaudited) 2010 2009 Equity 10,895,053 19,779,361 Investments 27,193,562 31,058,243 Receivables 1,442,032 1,239,908 Other assets 935,690 1,002,567 Total assets 29,571,284 33,300,718 Technical provisions 12,352,822 11,946,410 Other liabiliti
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