Powszechny Zaklad Ubezpieczen S.A.

PZU Group reported slightly above PLN 3 billion of net profit in the first half of 2026, on sales of PLN 15.7 billion, nearly PLN 0.5 billion higher year over year. Insurance service result was nearly PLN 2.3 billion; life insurance operating margin was 27.2% in H1 and 29.1% in Q2. The non-life combined ratio was 87.9% in H1 and 89% in Q2, while the main investment portfolio contributed PLN 1.4 billion and the Q2 portfolio return was 5.3%. Solvency stood at 230% for the group and 233% for PZU SA. Management said it expects dividend policy to remain unchanged and said the group is well positioned to stay above 200% solvency even after Solvency II changes; no formal next-quarter or full-year numerical guidance was given beyond that commentary.

Bogdan Benczak framed the first half as resilient in a difficult environment, citing geopolitical volatility, tax changes, and regulatory shifts in Poland. He highlighted growth pillars such as group insurance, individual protection insurance, external client assets, healthcare, and ETFs, while also pointing to AI as a strategic priority with more than 30 AI-enabled solutions already implemented and more than 30 in development. He sounded confident on strategic execution, especially around MetLife Ukraine, the LINK4 merger, and simplification of the group structure.

Maciej Fedyna focused on the financial quality of the quarter, saying insurance service result was nearly PLN 2.3 billion and the investment portfolio delivered PLN 1.4 billion, with Q2 portfolio return at 5.3%. He stressed that life insurance margin remained strong at 27.2% in H1, or 29.1% in Q2, and that non-life combined ratio held at 87.9% in H1 and 89% in Q2. He also explained that solvency was 230% under current rules, would be 206% if the new Solvency II rules were applied at end-2025, and said the group still has room to support its dividend policy through portfolio risk, reinsurance, and actuarial actions if needed.

Analysts asked about weaker motor CASCO written premium, and management said lower vehicle values, higher price pressure, and PZU’s larger market share in CASCO versus TPL explain the pattern, while unit growth and customer growth remain positive. On life insurance, management clarified that the premium growth is mainly from individual protection insurance, not investment products or one-off premiums. Questions on solvency, refinancing, and dividend capacity prompted management to say it is already evaluating subordinated debt refinancing options, that internal-model/regulatory discussions are ongoing, and that the dividend policy remains unchanged. On AI savings, management declined to quantify benefits but said automation is part of both technology modernization and future capacity planning.