Powszechny Zakład Ubezpieczeń (PZU) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered record insurance revenue of PLN 7.8 billion, with net profit attributable to parent shareholders at PLN 1.36 billion, despite less favorable market conditions and increased weather-related claims.

• Dividend of PLN 4.80 per share recommended, with a yield of 7.6%, reflecting a stable and future-proofed dividend policy.

• Solvency ratio remains robust at 239%, supporting a strong credit rating and exceeding European averages.

• Market leadership in Poland and strengthened position in Ukraine, with strategic acquisitions including MetLife Ukraine and consolidation of Link4, aiming for regulatory completion by end-2026 and Q1 2027.

• Strategic initiatives focus on innovation, digitalization, and operational efficiency improvements.

Financial highlights

• Insurance revenue for Q1 2026 reached PLN 7.8 billion (+3.2% y/y), with net profit attributable to equity holders at PLN 1.36 billion and operating margin at 25.3%.

• Combined ratio in non-life insurance at 86.8%, outperforming competitors.

• Life insurance income grew 7.6% year-over-year, with a margin of 25.3%.

• Investment portfolio profitability at 4.8%, with 73% in government debt instruments.

• Net investment result was PLN 3,746 million, down from PLN 4,454 million in Q1 2025.

Outlook and guidance

• Dividend policy aims to maintain or exceed current levels, factoring in upcoming regulatory changes in 2027.

• Ongoing review of strategy and operating targets by new management, with commitment to deliver on dividend commitments.

• Strategic targets for FY2027: gross insurance revenue > PLN 36 billion, net profit > PLN 6.2 billion, ROE > 19%, COR < 90%.

• The group is monitoring the impact of a recent CJEU ruling on consumer loans and is in the process of acquiring MetLife Ukraine, with closing expected by year-end 2026.

• Anticipates further claims from ground frost in agriculture, but exposure is lower due to reduced fruit tree insurance.