Powszechny Zaklad Ubezpiecze? Spólka Akcyjna : Presentation - PZU Group financial results (Q1 2026)

About this update from Powszechny Zaklad Ubezpieczen Spolka Akcyjna

PZU Group financial results for 1Q26 Warsaw, 14 May 2026 Commentary on PZU Group's performance and growth prospects CEO Bogdan Benczak CFO Maciej Fedyna CEO Solid 2026 opening with less favorable market conditions 1Q26 Revenues insurance revenue PLN 7.8 bn PLN +243 m y/y 1Q26 Profitability net profit 1 PLN 1.4 bn aROE 15.7% 3 2025 Capital position solvency II ratio PZU Group 239% PZU SA 237% Recommendation Dividend dividend per share 2 PLN 4.8 dividend yield ~ 7.6% Attributable to equity holders of the parent company. Management Board Recommendation dated 13th May, 2026 aROE - attributable to owners of the parent company, annualized return on equity excluding the cumulative effect of change in discount rates for valuation of insurance liabilities 4 High returns for shareholders Total shareholder return on PZU shares from May 12, 2010 (IPO) to May 12, 2026 +500% +400% +300% +200% +100% Payment date 8th October, 2026 On 13 May 2026 the PZU Supervisory Board positively assessed the Management Board's recommendation on the distribution of net profit for 2025, plus the amount transferred from the supplementary capital created from the net profit for 2024. Final decision on disbursement of the net profit will be made by the General Meeting of PZU shareholders. 5 - PZU TR . Dividend per share paid (PLN) . 4,47 . 4,34 1, . 09 . 2,00 . . 1,70 . 1,40 . 2,50 2,80 . . 3,50 . . 2,40 1,70 2,60 . 2, . 24 2 ,97 . 3,00 . . 1,94 2,08 Proposed dividend per share PLN 4.8 +410% (PLN 63.18) Record date 17th September, 2026 WIG +211% Secure capital position Credit rating and financial strength rating A- POSITIVE 239% SII Solvency II ratio significantly over 200% Solvency II for PZU Group at 239% 1 Average for European insurers is 214% 1 > 80% bonds Dominant share of bonds in the investment portfolio Bonds represent 87% of the investment portfolio, including 73% represented by sovereign bonds Stability of return rates owing to the portfolio structure and long-term management strategy Closed currency position 100% ≥ A Effective reinsurance protection The reinsurance program to limit the impact of catastrophic events and others 45% of PZU reinsurers with 2 AA rating and 55% with 2 A rating As at 31 December 2025 S&P rating at at 31 December 2025 6 Market leader in Poland ... strengthens its position in Ukraine Market shares in 2025 Non-life insurance market Other 22.8% (share <10%) PZU, TUW PZUW, LINK4 31.4% VIG 10.4% Ergo 14.9% Talanx 20.5% Life insurance market - regular premium Others 34.9% (share <10%) Nationale Nederlanden 10.3% Grupa PZU 40.7% EUR 21 m Net profit in 2025 EUR 38 m Insurance revenues in 2025 #1 50% share of the Ukrainian life insurance market Allianz 14.1% 7 ... and consolidates assets in Poland Target PZU Group Implementation of multibrand Increased competitiveness of the PZU Group, measured by growth in market share while maintaining the profitability of both brands. Key strategic rationale for the merger of the companies PZU Distribution networks LINK4 PZU Group Full utilization of the strong LINK4 brand and capabilities Increased value and attractiveness of channels Strengthening and development of the LINK4 brand Simplification and improved operational/capital efficiency Strengthening PZU's market position by leveraging the complementarity of the leading PZU brand and LINK4's unique competencies A broader product offering and access to two brands, enhancing the sales potential of exclusive agents, branches, multi-agencies, and partners New distribution channels, ability to leverage PZU's scale, and greater resilience to adverse cycles and price wars in the motor insurance market A streamlined operating model, unified processes, and a coherent and efficient multi-brand model supporting the achievement of the PZU Group Legal merger registration planned for 1Q27 8 Strategy objectives Key growth areas in 2026 Non-motor insurance revenue (PLN bn) Individual protection insurance revenue 1 (PLN m) 2.0 2.1 Increase y/y +3.5% 03.2025 03.2026 Sales growth in insurance Health Pillar Revenue (PLN m) against fire and other damage to property 255 199 03.2025 03.2026 Assets of external clients of TFI PZU, Pekao TFI and Alior TFI (PLN bn) Dynamic growth of the portfolio of protection insurance 69.6 85.9 Increase y/y +28.1% Increase y/y > PLN 6 m +23.4% users of the mojePZU platform 509 551 Increase y/y +8.1% 03.2025 03.2026 03.2025 03.2026 Growing importance of remote service channels for patients TFI PZU - #1 on the market in terms of net sales, with +2.2 bn in inflows 9 1Q26 Net profit (PLN m) Solid results in a challenging business environment 1,681 1,192 1,215 2Q24 3Q24 4Q24 1,995 1,470 1,474 2Q25 3Q25 4Q25 Insurance service result PLN 1,137 m (vs. 1,251 m in 1Q25) Result on investment portfolio PLN 655 m (vs. 733 m in 1Q25) aROE 15.7% 3 Operating margin 1 25.3% (vs. 24.2% in 1Q25) Combined ratio 2 86.8% (vs. 82.5% in 1Q25 ) 757 1,760 1,254 1,362 1,267 1Q24 Insurance 1Q25 1Q26 Banking 987 497 375 493 Life insurance (Poland) Non-life insurance in PZU Group (Poland) aROE in 1Q26, attributable to owners of the parent company, return on equity excluding the cumulative effect of change in discount rates for valuation of insurance liabilities 10 Strategic initiatives supporting the growth and competitiveness of the PZU Group 1 2 3 Distribution - "odNowa" program Claims handling - process changes Investments in innovation Real support for exclusive agents through modern work tools, including a CRM providing a full customer view, as well as operational improvements increasing efficiency and agent comfort Changes in claims handling reducing service time and accelerating the process from reporting to inspections The result is higher operational efficiency and improved customer experience Strengthened commitment to innovation through participation in the Innovate.Poland program. Expansion of the offering with an additional ETF - PZU ETF GOLD Portfelowy FIZ mojePZU - new functionalities Simplification of service and increased personalization through anew dashboard in mojePZU. Focus on efficiency, availability, and new features, including the ability to call for assistance Health pillar - network development Development of the in-house medical network - in 2Q25, 7 new facilities are planned to open (in Warsaw, Poznań, and Bydgoszcz) Expansion of the partner network by 175 new locations 11 "odNowa" program supporting exclusive agents 1 Real tool-based support for tied agents Modern CRM, a pillar of the PZU Group transformation A system providing a holistic customer view, a full picture of customer needs and behavior, serving as the primary work tool Synergy that really works Full PZU Group offering Leasing products from Pekao Leasing and Alior Leasing Access to services that increase customer comfort and agent effectiveness Recurring BLIK payment for life insurance Policy without printing Support in service processes and VIP hotline in claims handling Gradual implementation of additional solutions Dedicated program for tied agents A package of attractive benefits, initiatives, and tools strengthening agents' operational efficiency January 2026 Increased product value Multibrand: LINK4 motor insurance Attractive SME industry package offering 12 Changes in claims handling processes improving efficiency 2 Vehicle claims handling -2.1 days Average handling time for MOD and MTPL claims Average time from reporting to inspection Share of resolution in claims settlements MTPL p.p. +9 MOD p.p. +4 -2.9 days 1Q26 vs. 1Q25 1Q26 vs. 1Q25 1Q26 vs. 1Q25 13 Commitment to innovation and increasing activity in the ETF market 3 1 Participation of PZU in the Program On 20 April 2026, PFR Ventures, PFR SA, BGK, and PZU SA signed a cooperation agreement launching the Innovate Poland Program, which will unlock investment in Polish innovative enterprises. Planned investor commitment under the program is estimated at at least PLN 4 bn . Investments implemented through private equity, growth, venture capital, and private debt funds PZU ETF funds Over PLN 19 m in assets across two PZU ETFs as of end-March 2026. PZU ETF WIG20 TR + mWIG40 TR Portfelowy FIZ provides exposure to the dynamically growing Polish economy PZU ETF MSCI World Portfelowy FIZ provides exposure to a basket of shares of the world's largest listed companies 3rd PZU ETF on the market 11 May 2026 - launch of the third PZU ETF - PZU ETF GOLD Portfelowy FIZ on the WSE Reaching a new customer segment for PZU interested in exposure to the global gold market Promotional campaign for PZU ETFs at 0% fee Promoting PZU investments in a new channel of exchange-traded clients 14 Main strategic goals until 2027 and their implementation Gross insurance revenue 1 (PLN m) 1Q26 PLN 7.8 bn >36 mld zł KPI FY 2027 We are growing consistently - gross insurance revenues increased by PLN 243 m y/y in 1Q26, confirming the effectiveness of the business model and sales structure, and providing a solid base for achieving the PLN 36 bn target by 2027 >6.2 mld zł KPI FY 2027 PZU Group net profit 2 (PLN m) 1Q26 PLN 1.4 bn Net profit remains very strong on a historical basis, despite a demanding and exceptionally high base in 1Q25, which confirms the PZU Group's sustained ability to generate solid results even in a more challenging environment; the current level of profitability effectively supports the achievement of the PLN 6.2 bn target by 2027 DPS (PLN) Recommended PLN 4.8 ≥ 4.5 KPI FY 2027 We are systematically increasing value for shareholders. Since its IPO, PZU has already paid outnearly PLN 37 bn in dividends. On 13 May 2026, the Management Board recommended allocating PLN 4.1 bn from net profit for dividend payment, i.e. PLN 4.8 per share; the proposed amount is higher than the strategic ambition for this target for 2027 15 CFO 1. CEO Perspective: Main achievements and growth 2. CFO Perspective: Revenue and profitability 3. Annexes PZU Group results under IFRS 17 COR 86.8% 1Q26 Margin on life insurance in Poland 25.3% 1Q26 m PLN PZU GROUP EXCL. ALIOR BANK AND BANK PEKAO 1Q25 4Q25 1Q26 Change y/y Change q/q Gross insurance revenue 7,533 7,753 7,776 3.2% 0.3% Net insurance revenue 7,033 7,229 7,319 4.1% 1.2% Insurance service expenses (net) (5,782) (6,088) (6,182) 6.9% 1.5% Net insurance claims and benefits 1 (4,005) (4,066) (4,231) 5.6% 4.1% Administrative expenses (633) (709) (646) 2.1% (8.9%) Acquisition expenses (1,210) (1,265) (1,238) 2.3% (2.1%) Loss component amortization 269 226 239 (11.2%) 5.8% Recognition and change of the loss component (203) (274) (306) 50.7% 11.7% Insurance service result 1,251 1,141 1,137 (9.1%) (0.4%) Net financial revenue 326 187 285 (12.6%) 52.4% Finance income or expenses (494) (514) (326) (34.0%) (36.6%) Result from investment activities - allocated to insurance segments 820 701 611 (25.5%) (12.8%) NET RESULT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY 1,267 886 987 (22.1%) 11.4% BANKS: ALIOR AND PEKAO Net profit (loss) attributable to equity holders of the parent company 493 588 375 (23.9%) (36.2%) NET RESULT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY 1,760 1,474 1,362 (22.6%) (7.6%) MAIN FINANCIAL RATIOS (%) aROE 2 22.4 17.6 15.7 (6.7) p.p. (1.9) p.p. Claims ratio (with net loss component) 56.0 56.9 58.7 2.7 p.p. 1.8 p.p. Administrative expense ratio 9.0 9.8 8.8 (0.2) p.p. (1.0) p.p. Acquisition expense ratio 17.2 17.5 16.9 (0.3) p.p. (0.6) p.p. Combined ratio 3 82.5 87.3 86.8 4.3 p.p. (0.5) p.p. Margin on group and individually continued insurance 21.2 21.5 21.7 0.5 p.p. 0.2 p.p. Excluding the investment component aROE - adjusted return on equity for cumulative other comprehensive income relating to insurance and reinsurance finance income and expenses Only for non-life insurance in PZU Group in Poland 17 Non-life insurance Insurance segments Insurance revenue Result* Combined ration/margin Combined ratio (COR) m PLN, IFRS17 1Q25 1Q26 Change y/y 1Q25 1Q26 Change y/y 1Q25 1Q26 Total non-life insurance - Poland 4,553 4,556 0.1% 902 731 (19.0%) 82.5% 86.8% Mass insurance - Poland 3,306 3,292 (0.4%) 584 444 (24.0%) 85.8% 89.8% Motor TPL 1,159 1,102 (4.9%) 29 77 165.5% 97.5% 93.0% MOD 937 886 (5.4%) 99 3 (97.0%) 89.4% 99.7% Other products 1,210 1,304 7.8% 336 253 (24.7%) 71.6% 80.2% Net financial revenue x x x 120 111 (7.5%) x x Corporate insurance - Poland 1,247 1,264 1.4% 318 287 (9.7%) 68.8% 75.7% Motor TPL 173 205 18.5% 4 (6) x 97.7% 102.9% MOD 263 272 3.4% 59 23 (61.0%) 77.0% 91.2% Other products 811 787 (3.0%) 187 192 2.7% 50.0% 51.4% Net financial revenue x x x 68 78 14.7% x x Continuation of a stable y/y revenue trend confirming the strength of the business model under strong pricing pressure Cost and competitive pressures in motor insurance , including claims inflation, managed through operational and pricing actions Maintaining high profitability in a challenging market environment COR ratio in non-life insurance (%) - KPI - Strategy for 2025-2027 82.5 86.8 +4.3 < 90% 03.2025 03.2026 KPI FY 2027 *) The y/y change reflects the transfer of responsibility for the MSP Moto business line from the mass insurance segment to the corporate insurance segment. 18 Life insurance Insurance segments Insurance revenue Result* Margin m PLN, IFRS17 1Q25 1Q26 Change y/y 1Q25 1Q26 Change y/y 1Q25 1Q26 Total life insurance - Poland 2,242 2,412 7.6% 542 610 12.5% 24.2% 25.3% Group and individually continued insurance 2,016 2,127 5.5% 428 461 7.7% 21.2% 21.7% Individual insurance 199 255 28.1% 96 128 33.3% 48.2% 50.2% Investment insurance 27 30 11.1% 18 21 16.7% x x 24.2 25.3 +1.1 Solid profitability above 25%, driven by a consistent increase in contractual service margin (CSM) - both in group and individually continued insurance, as well as in individual protection insurance, supporting the expected delivery of the strategic target Decline in the claims ratio in the group and individually continued insurance segment , reflecting favorable mortality trends and strong portfolio quality KPI FY 2027 > 20% Margin in life insurance in Poland (%) - KPI - Strategy for 2025-2027 03.2025 03.2026 19 Investment result Debt instruments: 87% of the portfolio Government debt: 73% of the portfolio Secure portfolio structure IFRS, PLN m 1Q25 4Q25 1Q26 Change y/y Change q/q High profitability of the main portfolio Investment income less interest expenses 5,533 5,488 4,931 (10.9%) (10.1%) 4.8% in 1Q26 (with FX on liabilities ) Investment result allocated to insurance segments in Poland ex unit-linked 549 431 548 (0.2%) 27.1% Unit-linked 257 228 32 (87.5%) (86.0%) Investment result allocated to insurance segments abroad 25 44 34 36.0% (22.7%) Surplus portfolio, TFI, PTE 176 180 23 (86.9%) (87.2%) Solid profitability of the core portfolio maintained - slightly lower income from variable-coupon instruments partially offset by higher yields on fixed-coupon instruments, supported by active portfolio management and purchases of Polish government bonds at high market yields Higher result from valuation and disposal of debt instruments - positive impact of FX differences on assets covering foreign currency liabilities partially offset by a decline in the valuation of fixed-coupon instruments. Additionally, the improvement versus the previous quarter was driven by a better result on the sale of part of the government bond portfolio and improved valuation of the corporate debt portfolio Higher result on equity instruments compared to the previous quarter, mainly due to a better valuation result in the healthcare sector, with a y/y decline driven in particular by last year's positive impact from valuation and disposal of part of the equity portfolio Lower y/y real estate portfolio result mainly due to a decrease in income from swap points The negative impact of other items mainly relates to temporary exchange rate differences in real estate valuations - which reverses over semi-annual periods Banking activities including PPA 4,526 4,605 4,294 (5.1%) (6.8%) Total, insurance segments, investment activities and other 1,007 883 637 (36.7%) (27.9%) Main portfolio 733 571 655 (10.7%) 14.8% Debt instruments - interest 586 604 575 (1.8%) (4.8%) Debt instruments - revaluation and execution (24) (95) 6 x x Equity instruments 89 5 27 (69.8%) 465.7% Real estate 82 57 47 (42.6%) (16.6%) Investment products 257 228 32 (87.5%) (86.0%) Other 17 84 (50) x x Structure of the main portfolio by asset class and valuation methods Return on FX core portfolio from liabilities (%) Investment result allocated to insurance segments in relation to net insurance expenses and revenue* (PLN m) Government debt Foreign government debt Corporate debt 3% 3% 12% 41% 3% 1% 1% 14% Amortized cost 23% 6% 70% 9 8 7 6 Investment result allocated to insurance segments 303 249 Cash Real estate Core portfolio: PLN 54.6 billion; PZU Życie investment products : PLN 8.2 bn Shares 3% 7% 7% 3% 3% Fair value through other comprehensive income Fair value through result 5 4,8 4 3 2 1Q20 1Q21 1Q22 1Q23 1Q24 1Q25 1Q26 Net insurance finance income and expenses * Excluding unit-linked and foreign operations (299) 548 (246) 549 1Q25 1Q26 20

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