Capital and value creation

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This category includes financial resources held by the PZU Group, obtained from external sources (clients, shareholders, bondholders) and internal sources (profits generated on the Group’s business operations).

The policy allows for certain temporary deviations in the actual solvency ratio above or below the target level to occasionally occur.

Update of Capital and Dividend Policy for 2025– 2027

On 2 December 2024, the PZU Management Board adopted the Capital and Dividend Policy for 2025– 2027.

More information: Capital and Dividend Policy

Source and data: data after Q3 2024; PZU data (unaudited)

As regards intellectual capital, of key significance to the PZU Group are the intangible resources of the whole organization and distinct employees in the form of knowledge, experience, research, development and pursuit of a culture of innovation.

Innovation in the PZU Group’s product and service offering

The innovation approach adopted by PZU supports the pursuit of the overall PZU Group’s mission and strategy. Four major areas are set forth thereunder, in which particular effort is expended to find new solutions, with a special focus on high-volume processes:

• digitalization (particularly AI and advanced analytics);
• client interaction and loyalty;
• ecosystems: health, automobile (drivers), repair network;
• Value Added Services.

Work is currently underway to increase the precision of tariff models, which will translate into increased efficiency in risk selection. In the area of claims and benefits, advanced analytical models are used, among other things, to support clients in selecting optimal paths of claims manageability and matching settlement forms. In 2024, implementations of advanced machine learning analytics in this area were completed for non-commercial insurance, covering claims processes across all product lines. Tools for finding nonobvious relationships in data (data mining), text, image and voice recognition to automate damage estimates, graph networks to detect insurance crime and organized groups (FMS – Fraud Management System), or RPA robotics have also been developed for many years.

Due to the dynamic development of the digital world and the arrival of data as an information resource, the PZU Group is constantly developing its reporting and analytical solutions, pursuing its mission to increase competitive advantage through the effective use of data. Reliable data is a vital asset for the company and is essential for business processes such as, among others, risk assessment, underwriting, accurate tariff estimates, combating fraud and insurance crime, personalizing offers and broader portfolio management, as well as claims and benefits handling. For more than two decades, the Information Management Department has been developing a corporate Data Warehouse and reporting and analytical solutions (Business Intelligence) that are a key element of the organizational culture and strategic approach to business management in the PZU Group. The Data Warehouse gathers information from more than a hundred internal and external sources (currently more than 90,000 attributes, current and historical data from the last 25 years) in such a way that it can serve in strategic, management and operational decision-making processes. In order for the mission of information management to be fully realized, modern ICT infrastructure solutions are being implemented that are adapted to the volume and type of data and users, technologies and analytical techniques that are adequate to business demand and meet market standards, and tools that provide information recipients with fast and uninterrupted access to data and analyses. It is one of the largest information ecosystems in this part of Europe.

An example of optimizing and improving the efficiency of reporting processes is the significant reduction in the time required for financial month-end closing and IFRS17 reporting, which allows for faster delivery of key information to shareholders and regulators. Given the growing importance of sustainability and environmental responsibility, new ESG and CSRD reporting processes have also been implemented, allowing us to transparently present our activities in these areas.

In terms of expanding advanced analytics environments and processes, the ML-Ops Hub has been established to manage, inventory and, most importantly, create and continuously improve machine learning (ML) and artificial intelligence (AI) models. As a result, new analytical models have been successfully implemented to support business processes and accelerate datadriven transformation.

The PZU Group is fully aware that innovations call for making creative space conducive to generation of ideas, as well as prototyping, testing and implementing unique original solutions. This is the role of PZU’s Innovation and AI Team. Its overarching task is to search for modern solutions, check them, perform tests and support rollouts. Moreover, special processes have been forged in the entire organization to facilitate rapid testing and implementation of innovative solutions.

In 2024, over 1000 ideas and start-ups were analyzed; and 14 pilots of innovative solutions were launched. There were 9 pilots which were completed, and 5 out of those 12 were advanced to the implementation phase. Among them were solutions to support actuarial processes, claims and benefits handling processes, the multiagency sales area, as well as AI solutions that have a positive impact on the efficiency and quality of work of all PZU employees. Since the inception of the Innovation area PZU has completed many unique projects, which have been awarded more than 35 industry prizes. In 2024, PZU received the prestigious Celent Model Insurer 2024 award and the Innovation Diamond in the “Patron of Startups” category.

The process is constantly monitored, and the right approach to artificial intelligence testing ensures that experimenting with this technology is safe and reliable. The GPD Lab functions as a working team within the PZU, consisting of representatives from the Innovation and AI Team (ZLI), the Information Management Department (BZI), the Artificial Intelligence Factory (FSI) and the Development and Deployment Department (BRW). The above units are core areas where experts use the latest advances in AI and machine learning to analyze the vast amounts of data available at PZU. In 2024, GPT Lab implemented, among other things, a generative artificial intelligence solution to support PZU Dom’s self-service claims handling process (the Self-Service Next project), and piloted AI Assistant, a secure tool based on GPT models, designed to support PZU employees in their daily work. As part of the pilot, about 1,000 employees had the opportunity to test the solution and learn how to use GenAI tools in practice. Based on the experience of the pilot, implementation of such tools for all employees of the Company will be implemented.

Human capital management involves matters related to creating a workplace, caring for safety, building relationships and dialog, supporting diversity, managing talents, and retaining key employees.

This type of capital is made up of shared norms, values and behaviors that build long-term and lasting relationships with stakeholders. These are aspects related to client loyalty, brand perception and preventive, sponsoring and social activities.

This type of capital is made up of the largest distribution and service network in Poland, in particular: branches, outlets, agents and business partners, the claims and benefits handling network, and electronic distribution channels. It also includes one of the largest corporate PZU Data Warehouses in Central and Eastern Europe as well as reporting systems and ML/AI advanced analytics, IT tools and systems that enable information flow both within and without the PZU Group. As a result, PZU Group clients enjoy easy and convenient access to financial products and services.

This is primarily the PZU Group’s direct and indirect impact on the environment.