Powszechny Zakład Ubezpieczeń S.A. (WSE: PZU)
Exchange: Warsaw Stock Exchange (WSE) | Industry: Insurance | Currency: PLN
Report Date: March 2025
1. Key Financials (2019–2024)
| Year | Revenue | Net Profit | Total Assets | Equity | ROE | ROA | Dividend per Share |
|---|---|---|---|---|---|---|---|
| 2024 | 47,950 | 5,845 | 452,540 | 44,200 | 13.2% | 1.3% | 4.50 PLN |
| 2023 | 46,123 | 5,321 | 435,789 | 42,985 | 12.4% | 1.2% | 4.15 PLN |
| 2022 | 45,194 | 3,374 | 413,087 | 42,122 | 8.0% | 0.8% | 3.50 PLN |
| 2021 | 42,416 | 3,336 | 398,504 | 41,004 | 8.1% | 0.8% | 3.00 PLN |
| 2020 | 37,626 | 2,634 | 373,132 | 38,118 | 6.9% | 0.7% | 2.20 PLN |
| 2019 | 38,512 | 3,295 | 348,323 | 36,792 | 8.9% | 0.9% | 2.80 PLN |
Source: PZU Consolidated Financial Reports 2019–2024, GPW filings
2. Growth & Profitability Trends
| Metric | 5Y CAGR | Commentary |
|---|---|---|
| Revenue | +3.9% | Steady premium and investment growth |
| Net Profit | +12.4% | Recovery post-COVID and improved cost efficiency |
| Equity | +3.7% | Conservative capital management |
| Dividend per Share | +10.2% | Attractive payout policy |
| ROE | ~9.6% avg | Above regional average for insurers |
3. Valuation Multiples (as of March 2025)
| Metric | Value | Peer Comparison |
|---|---|---|
| P/E Ratio | ~7.9x | Below European insurance avg (~10x) |
| P/B Ratio | ~1.03x | Fairly valued |
| Dividend Yield | ~7.4% | High yield, income investor-friendly |
4. Business Fundamentals & Strategic Factors
- Market Position: Largest insurer in Poland (~30% share)
- Operations: Active in insurance, banking (Bank Pekao), and asset management
- Solvency: Strong Solvency II ratio above 200%
- Ownership: 34% state-owned; strategic asset
- ESG: Growing commitment but still lagging in green finance leadership
- Key Risks: Political influence, inflation on claims, currency risk
5. Outlook 2025–2026
- Interest Rates: Higher rates to support investment income
- Digitalization: Enhancing efficiency and client retention
- Premium Growth: Room for expansion in underinsured markets
- Macro Exposure: Closely tied to Polish economy
6. Investment Summary
Strengths:
- Stable, market-leading business
- Strong capital base and reliable cash flows
- Attractive dividend policy and reasonable valuation
Risks:
- State ownership may impact flexibility
- Poland-centric, limited international diversification
- Exposure to inflation and policy risk
Verdict: Fundamental Quality – STRONG
Well-capitalized insurer with solid long-term fundamentals and high shareholder returns.
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