Powszechny Zakład Ubezpieczeń (PZU) Investor update summary

Strategy and operating model

• 2025–2027 strategy centers on simplicity, focus, development and engagement, shifting from a functional structure to 8 customer-focused business units and shared services.

• Target PLN 400m in efficiency gains and synergies by 2027 through operating-model changes and better use of assets.

• Priorities include core insurance, strategic partnerships, embedded insurance, international expansion and stronger customer relationships.

• Flood response deployed or mobilized 1,000 people; over 90% of nearly 50,000 claims were paid within a few months, totaling PLN 500m in claims.

Insurance, health and digital development

• 2027 mass non-life targets: revenue growth above 30% and combined ratio below 90%; corporate non-life: revenue growth above 25% and combined ratio below 90%.

• Gross insurance revenue target is PLN 36.2bn in 2027 versus PLN 28.7bn LTM; total insurance revenue target is +PLN 7.5bn, with Solvency II above 190%.

• Life targets include new-business value growth above 35% and operating margin above 20%; standalone protection insurance sold through banks is targeted to scale fourfold.

• Healthcare targets exceed PLN 3bn revenue by 2027, growth above 60%, doubled operating EBITDA and ~60% own-facility share; PLN 1bn is planned for infrastructure over three years.

• Digital goals include 8m mojePZU users and 60m annual logins by 2027; services will expand through APIs and external platforms, including banking apps, CRM and regulated AI services.

Financial goals and banking

• 2027 targets include net profit above PLN 6.2bn, core-business EPS above PLN 5.1 versus PLN 3.7 LTM, and core ROE above 19% versus 17% LTM.

• Dividend per share target is at least PLN 4.5, supported by improved results and lower dependence on interest-rate levels.

• A letter of intent was signed on 2 December 2024 for a planned cash sale of Alior Bank shares to Bank Pekao, subject to approvals; signing is targeted for H1 2025 and completion by mid-2025.

• At current valuation, the transaction could generate over PLN 1bn in additional standalone profit while remaining neutral to consolidated results; released capital would be reinvested.

• Planned consolidation aims to simplify governance and release capital for core business, healthcare and Poland’s economic and energy transition, while maintaining shareholder returns.