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1. Company Snapshot

1.a. Company Description

POWSZECHNY Zaklad Ubezpieczen SA provides life and non-life insurance products and services in Poland, the Baltic States, and Ukraine.It operates through Corporate Insurance, Mass Insurance, Group and Individually Continued Insurance, Individual Insurance, Investments, Banking Activity, Pension Insurance, Baltic States, Ukraine, Investment Contracts, and Other segments.The company offers motor, property, casualty, agricultural, fire, and third-party liability insurance, as well as accident and life insurance.


It also provides banking, medical, hospital, physical therapy, assistance, and spa services; manages pension and mutual funds; and offers financial and accounting services.In addition, the company is involved in buying, operating, renting, and selling real estate properties; investment activity; and consulting and training, and other monetary intermediation businesses.Further, it engages in the production and sale of radiators and sanitary fittings, bathroom accessories, and fittings; and auxiliary activity associated with insurance and pension funds.


Powszechny Zaklad Ubezpieczen SA was founded in 1803 and is based in Warsaw, Poland.

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1.b. Last Insights on PZU

Powszechny Zaklad Ubezpieczen SA's recent performance was driven by robust growth in non-motor insurance, maintaining high profitability despite competitive pressures. The company's Q3 2025 earnings call highlighted strong financial results. Additionally, as a dividend stock, it offers a stable income stream, attractive in the current European market context where investors seek to balance risk and return. With European markets navigating mixed performances, the company's dividend-paying status provides potential for long-term appreciation.

1.c. Company Highlights

2. PZU's Q3 2025 Earnings: Strong Performance and Strategic Growth

PZU Group reported a robust financial performance in Q3 2025, with sales reaching PLN 23.1 billion and a consolidated profit of PLN 5.2 billion. The earnings per share (EPS) came in at PLN 2.31, significantly beating analyst estimates of PLN 1.7. The company's solvency capital position remained strong at 234%, and the dividend yield for the dividend paid in October was around 8%. The annualized return on equity (aROE) was above 20%, indicating a high level of profitability.

Publication Date: Nov -21

📋 Highlights
  • Strong Financial Performance:: Q3 sales reached PLN 23.1 billion, with a consolidated profit of PLN 5.2 billion, driven by a 170% YoY net result increase to PLN 1.419 billion.
  • High Solvency and Returns:: Solvency ratio at 234%, annualized ROE over 20%, and a dividend yield of 8% highlight robust capital position and shareholder returns.
  • Non-Life Insurance Growth:: Non-motor insurance growth of 10% in mass segment and 8.1% in non-life mass insurance, alongside 15% YoY health insurance subscription increase.
  • Foreign Market Expansion:: Baltic and Ukraine markets contributed PLN 2.3 billion in written premiums, with combined ratios of 86.5% and 94% in Q3 respectively.
  • Strategic Priorities:: Focus on IT system upgrades, claims handling automation (targeting 2026 implementation), and expanding bancassurance partnerships with PLN 600 million quarterly premiums.

Segment-wise Performance

The growth was mainly driven by non-life insurance, particularly non-motor insurance, and foreign markets, including Lithuania, Latvia, Estonia, and Ukraine. The Life Insurance segment also saw improvement, especially in Individual Life Insurance. The mass segment saw a 10% growth in non-motor insurance, driven by household insurance and a new approach to insurance sum with aggressive pricing. The corporate insurance segment reported an 8% growth, driven by non-motor and motor insurance.

Valuation and Dividend Yield

With a Price-to-Book Ratio (P/B) of 1.65, the stock appears to be reasonably valued. The Dividend Yield of 7.31% is attractive, reflecting the company's commitment to providing high returns to shareholders. The Return on Equity (ROE) of 19.08% indicates a high level of profitability. The company's strong capital position and solvency ratio provide a solid foundation for future growth.

Strategic Initiatives and Growth Prospects

PZU's priorities for 2026 and 2027 include improving profitability, growing in non-life and mass insurance, and developing collaboration with multi-agencies. The group also plans to implement a new system of claims handling, focus on Health, and manage its investment portfolio effectively. The company's strong presence in the Baltic states and Ukraine, along with its reorganization efforts, are expected to drive growth. As Tomasz Kulik reported, the company saw significant growth in health insurance, with a 15% year-over-year increase in subscriptions and insurances.

Challenges and Risks

The company faces risks related to legislative changes, including a 10% tax on revenues from insurance introduced in Lithuania. However, PZU's strong capital position and conservative approach to liabilities are expected to help mitigate these risks. The merger with Pekao SA is expected to be completed according to the previously announced timeline, with efforts underway to integrate the businesses and achieve synergies.

3. NewsRoom

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Powszechny Zaklad Ubezpieczen SA (PWZYF) Q3 2025 Earnings Call Highlights: Strong Financial ...

Nov -20

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Nov -07

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Jul -22

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3 European Dividend Stocks Yielding Up To 7.4%

Jun -23

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Poland’s Bank Pekao and insurer PZU sign MOU on potential merger

Jun -02

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Powszechny Zaklad Ubezpieczen SA (FRA:7PZ) Q1 2025 Earnings Call Highlights: Record ...

May -16

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Powszechny Zaklad Ubezpieczen SA (PZAKY) Full Year 2024 Earnings Call Highlights: Strong ...

Mar -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.10%)

6. Segments

Mass Insurance

Expected Growth: 4.83%

The 4.83% growth of Mass Insurance from Powszechny Zaklad Ubezpieczen SA is driven by increasing demand for protection products, a growing middle class in Poland, and the company's strong distribution network. Additionally, the insurer's digitalization efforts and expansion into new markets have contributed to its growth.

Group and Individually Continued Insurance

Expected Growth: 4.83%

The 4.83% growth in Group and Individually Continued Insurance from Powszechny Zaklad Ubezpieczen SA is driven by increasing demand for employee benefits, rising healthcare costs, and a growing awareness of insurance benefits among Polish citizens. Additionally, the insurer's strong distribution network, competitive pricing, and innovative product offerings have contributed to this growth.

Corporate Insurance

Expected Growth: 4.6%

The 4.6% growth of Corporate Insurance from Powszechny Zaklad Ubezpieczen SA is driven by increasing demand for risk management solutions among Polish businesses, expansion into new industries, and a growing awareness of insurance benefits. Additionally, the insurer's strong distribution network, competitive pricing, and tailored product offerings have contributed to its market share growth.

Insurance - Baltic States

Expected Growth: 7.4%

Strong economic growth in Baltic States, increasing disposable income, and rising awareness of insurance benefits drive demand for Powszechny Zaklad Ubezpieczen SA's insurance products. Expanding distribution channels, strategic partnerships, and innovative product offerings also contribute to the 7.4% growth.

Individual Protective Insurance

Expected Growth: 6.4%

The 6.4% growth of Individual Protective Insurance from Powszechny Zaklad Ubezpieczen SA is driven by increasing awareness of personal risk management, rising disposable income, and a growing middle class in Poland. Additionally, government initiatives promoting insurance penetration and the company's expanded distribution channels have contributed to this growth.

Insurance - Ukraine

Expected Growth: 7.77%

Powszechny Zaklad Ubezpieczen SA's 7.77% growth in Ukraine's insurance market is driven by increasing demand for non-life insurance products, a growing middle class, and government initiatives to promote insurance penetration. Additionally, the company's strong brand recognition, diversified product offerings, and efficient distribution channels contribute to its market share expansion.

Life Investment Insurance

Expected Growth: 6.17%

The 6.17% growth of Life Investment Insurance from Powszechny Zaklad Ubezpieczen SA is driven by increasing demand for retirement savings, growing popularity of unit-linked products, and a rising middle class in Poland seeking long-term investment opportunities. Additionally, the insurer's strong distribution network and digitalization efforts have improved accessibility and customer engagement.

7. Detailed Products

Life Insurance

Provides financial protection to the policyholder's family in the event of death or terminal illness.

Health Insurance

Covers medical expenses, including hospital stays, surgeries, and doctor visits.

Motor Insurance

Provides financial protection against damage or loss of vehicles, as well as liability coverage in the event of an accident.

Travel Insurance

Covers unexpected medical or travel-related expenses while traveling abroad.

Home Insurance

Provides financial protection against damage or loss of property, including homes and contents.

Accident Insurance

Provides financial protection in the event of accidental death or disability.

Investment Products

Offers a range of investment options, including unit-linked insurance plans and pension plans.

8. Powszechny Zaklad Ubezpieczen SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Powszechny Zaklad Ubezpieczen SA is moderate, as there are alternative insurance providers in the market, but the company's strong brand and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as Powszechny Zaklad Ubezpieczen SA has a strong market position and a large customer base, making it difficult for individual customers to negotiate prices or terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Powszechny Zaklad Ubezpieczen SA relies on a network of agents and brokers to distribute its products, but it also has some negotiating power due to its size and market position.

Threat Of New Entrants

The threat of new entrants is low, as the insurance industry in Poland is heavily regulated and requires significant capital and expertise to enter, making it difficult for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high, as the Polish insurance market is highly competitive, with many established players competing for market share, and Powszechny Zaklad Ubezpieczen SA faces intense competition from other insurance companies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.22%
Debt Cost 7.04%
Equity Weight 44.78%
Equity Cost 7.04%
WACC 7.04%
Leverage 123.33%

11. Quality Control: Powszechny Zaklad Ubezpieczen SA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mapfre

A-Score: 7.9/10

Value: 6.8

Growth: 6.6

Quality: 7.2

Yield: 8.1

Momentum: 10.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
PZU

A-Score: 7.8/10

Value: 8.4

Growth: 6.9

Quality: 6.7

Yield: 9.4

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
BAWAG

A-Score: 7.3/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 8.8

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

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VIG

A-Score: 7.2/10

Value: 6.4

Growth: 4.2

Quality: 6.2

Yield: 7.5

Momentum: 10.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Admiral

A-Score: 7.1/10

Value: 3.9

Growth: 6.0

Quality: 7.5

Yield: 7.5

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Beazley

A-Score: 6.5/10

Value: 6.2

Growth: 6.7

Quality: 9.0

Yield: 3.8

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.66$

Current Price

62.66$

Potential

-0.00%

Expected Cash-Flows