Powszechny Zaklad Ubezpieczen Spolka Akcyjna · GPW:PZU
Powszechny Zaklad Ubezpieczen Spolka Akcyjna — PZU — Investor Day (January 2015)
40 slides from Powszechny Zaklad Ubezpieczen Spolka Akcyjna's investor day presentation, Jan 28, 2015
Slide 1: Slide 1
Slide 2: PZU 3.0 Insurance, Investments, Health: PZU Group Strategy 2015-2020
PZU 3.0 Insurance, Investments, Health PZU Group Strategy for 2015-2020 Warsaw, January 28th 2015
Slide 3: External Environment
External Environment Market trends Historically low interest rate environment Aging society Regulatory changes (Solvency II, Recommendation U) Price war in motor insurance Expected increase in the loss ratio Growing role of intermediaries Amendment of the single premium life insurance market 3
Slide 4: Macroeconomic Assumptions
Macroeconomic Assumptions GDP growth rate (%, per annum) Individual consumption (%, change in real terms) 4.8% 3.9% 3.3% 3.5% 3.2% 3.4% 3.2% 3.2% 3.3% 3.1% 3.0% 2.8% 2.6% 2.6% 2.6% 2.6% 1.8% 1.7% 1.0% 1.1% 2011 2012 2013 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2011 2012 2013 2014F 2015F 2016F 2017
Slide 5: Stable Insurance Market Growth, High Potential of Health and Asset Management Market
Stable Insurance Market Growth, High Potential of the Health and Asset ManagementMarket x% 2014 2020 Key observations CAGR 2014-2020 Gross +2.5% Low growth in motor insurance (2.3%) premium, 29.6 • Price war until 2016 (possible with low loss ratio) bn PLN 25.5 • Low growth in the number of cars of
Slide 6: We Have Laid a Robust Foundation for Further Growth
We Have Laid a Robust Foundation for Further Growth Modern IT tools Greater operating efficiency Branch network Highest level of Customer service revitalization Cost optimization Achieved benchmark cost effectiveness Perception of PZU at the same level as other leading financial Brand refreshment in
Slide 7: PZU 3.0
PZU 3.0
Slide 8: We Are PZU! We Provide Peace of Mind and a Sense of Safety
We Are PZU! We Provide Peace of Mind and a Sense of Safety
Slide 9: PZU Group's Mission
PZU Group’s Mission We exist to provide our Customers peace of mind and a sense of safety. Customers can always rely on us Our excellent knowledge of our Customers enables us to meet their needs and reasonable expectations while our large scale and high efficiency enable us to deliver them with the
Slide 10: Three Basic Rules Describe how We Behave
Three Basic Rules Describe how We Behave We are Effective We are Fair We are Innovative 10
Slide 11: Transform PZU from an Insurer into a Group Based on Three Pillars
We Will Transform PZU from an Insurer into a Group Based on Three Strong Pillars Asset Management Medical Care Insurance (PZU Investments) (PZU Health) 2020 ROE 20% 2020 2020 Market share: Market Market share: Non-lifeshare: market(1) > 35% Non-life Non-life market market Life market(2) (1) (1) > 43
Slide 12: PZU Group's Expansion Based on Customer Segmentation
PZU Group’s Expansion Based on Customer Segmentation • Customize the product offering to the needs of the segments • Identify the areas with potential to grow PZU Group’s revenues by looking at the Group’s position in the segments • Effectively use the current Customer base • Enhance Customer satisf
Slide 13: PZU Group's Growth Pillars
PZU Group’s Growth Pillars Insurance Investments Health RETAIL CUSTOMERS CORPORATE CUSTOMERS BANCASSURANCE AND STRATEGIC PARTNERSHIPS Effective distribution and customer service Socially responsible organization Efficient claims handling, effective operations and flexible IT Effective capital and in
Slide 14: Three Segments in the Retail Customer Business
Three Segments in the Retail Customer Business Mass Customers Premium Customers SMEs Monthly net income Monthly net income Annual turnover Criterion below above below 4 000 PLN 4 000 PLN 20 m PLN Pensioners VIP Subsegments Micro Companies Farmers Affluent examples Public Administration Youngsters As
Slide 15: Segments in Corporate Customer Business (Non-life Insurance)
Segments in Corporate Customer Business (Non-life insurance) Mid Corporate Key Customers Strategic Customers Top 150 Companies Annual Turnover Annual Turnover above Criterion in Poland with the greatest 20 - 100 m PLN 100 m PLN insurance potential Public administration and local government units Ene
Slide 16: Segments in Corporate Customer Business (Life Insurance)
Segments in Corporate Customer Business (Life Insurance) Mid Corporate Key Customers Strategic Customers Employment Employment Employment Criterion 30 - 250 FTE 251 - 1000 FTE above 1000 FTE Small Mid Corporate Subsegments Large Mid Corporate examples Industry programs 16
Slide 17: A Standard-Setting Leader of the Insurance Market
A Standard-Setting Leader of the Insurance Market • Clear products to Customers; no exclusions • The market leader in claims handling • Product and process innovations with new technologies usage 17
Slide 18: New Broader Customer Value Proposition
New Broader Customer Value Proposition With the most extensive product offering on the market and extensive product development experience, the PZU Group is capable of adapting its offer to Customer requirements not only in terms of product-related needs but also its overall experience in all PZU Gr
Slide 19: Comprehensive Multi-channel Distribution and Customer Service
Comprehensive Multi-channel Distribution and Customer Service The PZU Group has the most comprehensive and wide distribution and customer service network on the market enabling Customers to choose the most convenient form of contact and service for themselves. Regardless of the form of contact and t
Slide 20: Competing on the Marketplace by Leveraging Two Brands
The PZU Group Will Actively Compete on the Marketplace by Leveraging Two Brands The PZU Group will employ two brands whose positioning and offer vary to address the needs of broadest portion of the Retail Customer market. The strength of the direct brand will make it possible to reach new Customers
Slide 21: Directions for Growth in the Retail Customer Business
PZU Group’s Directions for Growth in the Retail Customer Business Segment Aspirations and main areas of growth Maintain a target group Customer database and extend cross-selling in the Mass Customer segment: • upsell non-life products (mostly TPL, Home insurance) to individual continuation and group
Slide 22: Comprehensive Offer for Corporate Customers (Non-life Insurance)
Comprehensive Offer Tailored to Meet Corporate Customers’ Resonable Needs (Non-life Insurance) The PZU Group will become a business partner with a strong expert position providing not only insurance products but also advising Customers at every stage of risk management, including in particular the s
Slide 23: Comprehensive Offer for Corporate Customers (Life Insurance)
Comprehensive Offer Tailored to Meet Corporate Customers’ Reasonable Needs (Life Insurance) Considering PZU’s position in the Corporate Customer area in PZU Życie the goal is to sustain its market share while concurrently controlling the decline in profitability Major assumptions: • Retain its marke
Slide 24: Directions for Growth in Bancassurance and Strategic Partnerships
PZU Group’s Directions for Growth in Bancassurance and Strategic Partnerships Partner Aspirations and main areas of growth • Retain market share in non-life product • Tap into the long-term opportunities ensuing from Recommendation U and build a position in life insurance (temporary declines in gros
Slide 25: Comprehensive Roll-out of the Digital Operating Model by 2020
Comprehensive Roll-out of the Digital Operating Model by 2020 Flexible customization of the offer to meet Customer needs: rapid changes to tariffs and new product launches 360° Customer view: all relations, including history of changes and contacts Multi-channel sales and Customer service with full
Slide 26: The Role of the PZU Group's International Operations Will Grow
The Role of the PZU Group’s International Operations Will Grow The PZU Group will increase the scale of foreign operations both through organic growth on the markets where the Group has a footprint and through acquisitions on markets with a good outlook • Strategic objective in countries in which th
Slide 27: Central and Eastern Europe Is the Primary Area of Interest
Central and Eastern Europe Is the PZU Group’s Primary Area of Interest PZU Group’s international operations and area of interest for future expansion Estonia Since 2013 Łotwa Since 2012 Litwa Since 2002 Ukraina Since 2005 PZU’s current footprint Markets with a good outlook 27
Slide 28: PZU Investments Will Be a Leading Asset Manager in the CEE Region
PZU Investments Will Be a Leading Asset Manager in the CEE Region Leader in managing Customer assets in the Central and Eastern European (CEE) region by 2020: • Provider of unique products with above average investment performance (better than the median for competitors’ performance) • Image as an e
Slide 29: PZU Investments Offers Products in which the Group Also Invests
PZU Investments Offers Products in which the PZU Group Also Invests Its Own Funds PZU Investments constantly adapts to its Customers’ changing needs. Leveraging its exceptional asset management skills and its significant investment portfolio for its own account, the PZU Group offers Customers invest
Slide 30: In Medical Care We Want to Become an Integrated Operator of Coordinated Care
In Medical Care We Want to Become an Integrated Operator of Coordinated Care in the Next 10-15 Years PZU Health will become an integrated operator of coordinated care meaning that it will provide Customers a full range of health protection services by leveraging the possibilities stemming from avail
Slide 31: Building an Effective Medical Operator as Foundation for Coordinated Care
In the Upcoming 6 Years We Will Build an Effective Medical Operator as the Foundation for Coordinated Care Proprietary medical network Payer + reference network Insurer (payer) PZU today PZU in 2015 PZU in 2020 External network of medical Limited number of proprietary Nationwide proprietary partners
Slide 32: Investment Policy Focused on Optimizing Profitability
Investment Policy Focused on Optimizing Profitability The most important aspect of the PZU Group’s investment policy in 2015-2020 is to optimize the profitability of investment activity for the intended risk appetite. Thanks to its considerable investment portfolio for its own account, the PZU Group
Slide 33: Capital and Dividend Policy Focus on Total Shareholder Return
The Capital and Dividend Policy Focus on Total Shareholder Return (TSR) The PZU Group manages capital comprehensively and effectively by optimizing the return on capital from the Group’s viewpoint. The capital and dividend policy focuses on total shareholder return by optimizing capital while mainta
Slide 34: We Will Invest at Least 1 bn PLN to Grow PZU Health and PZU Investments
We Will Invest at Least 1 bn PLN to Grow PZU Health and PZU Investments Expenditures to execute Expenditures split Strategy 2015-2020 [bn PLN] • PZU will invest roughly 450 m PLN on acquisitions in Health • PZU Investments will invest 0.2 bn PLN to execute its Strategy of rapidly growing assets unde
Slide 35: Strategy's Key Performance Indicators - Aspirations
This Strategy’s Key Performance Indicators - Aspirations Area KPI 2013 2020 Best competitors / market (1) 1 Non-life market share in Poland 31.8%(2) > 35% Player no. 2: 15.5% Life market share in Poland 43.3% > 43% Player no. 2: 9.9% 2 (regular premium) Business Share of PZU’s third party Customers
Slide 36: Strategy's Key Performance Indicators - Aspirations
This Strategy’s Key Performance Indicators - Aspirations Area KPI 2013 2020 Best competitors / market (1) Customer 6 No. of products per Retail Customer 1.45 1.68 No data 7 ROE 24.1% 20% Market(2): 10.2% Business at least 3 p.p. above profitability 8 PZU SA combined ratio 87.3% Market(2): 96.0% the
Slide 37: We Are PZU! We Provide Peace of Mind and a Sense of Safety
We Are PZU! We Provide Peace of Mind and a Sense of Safety
Slide 38: PZU 3.0
PZU 3.0
Slide 39: Contact with Investor Relations
Contact with Investor Relations Piotr Winiewski Director of the Investor Relations Team +48 22 582 26 23 +48 601 336 330 pwisniewski@pzu.pl ir@pzu.pl www.pzu.pl/ir PZU Al. Jana Pawa II 24 00-133 Warszawa 39
Slide 40: Disclaimer
Disclaimer This presentation of the Strategy („Presentation”) has been prepared by PZU SA (“Company”) and is purely informational in nature. It purports to depict selected data concerning the PZU SA Capital Group (“Group“) and its outlook for growth. It may not be treated as part of a solicitation o