Operating activities

In the mass insurance segment, PZU:

• made its agricultural insurance offering more attractive, including:
  • introducing a new product to the AGRO offering – PZU Gospodarstwo Rolne Plus, which extends the cover to: agricultural buildings of individuals (in terms of: excess risks, gross negligence, assistance services), agricultural buildings of companies (engaged in agricultural activities), buildings under construction, structures, generators and technological equipment (against failure);
  • introducing a modified version of PZU Gospodarstwo Rolne – immovable property to the AGRO offering: with a broader object of insurance (concerning, among other things, property related to agritourism); with a broader scope of basic risks (concerning wild animal activity, devastation, overvoltage, flooding, thawing of food products); with new additional risks (concerning thawing of land, strangulation of pigs, strangulation of unborn piglets); with an expanded definition of the place of insurance.
• withdrawing from the PZU DOM offer the service of being able to withhold an identity document;
• PZU Wojażer – to the basic insurance coverage: medical expenses, assistance (all packages) and continuation of treatment after travel, incorporating risk of treatment related to an exacerbation or complication:
  • of a chronic disease or illness that led to hospitalization during the 12 months prior to the conclusion of the insurance contract, or
  • following a surgical procedure performed as part of one-day surgery within 30 days prior to the conclusion of the insurance contract, up to the full sum insured (SI) for medical expenses at no additional premium.
• expanded range of additional products in motor insurance with the innovative Auto Serwis under the assistance insurance PZU Pomoc w Drodze Super.

Within corporate insurance, most changes which PZU focused on, involved making the offering more appealing for fleet clients and leasing companies, and continuously making cooperation with intermediaries more effective.

Major new products included:

• preparing and incorporating of a new pricing model for small and medium-sized fleets (up to 70 vehicles). The model, which relies on data from the UFG and CEP databases, builds the price of fleet insurance based on the individual loss score of the fleet and the developed risk model. With this solution, the process of determining the price for small and medium-sized fleets for both corporate and SME clients is simplified and automated, so the offer can be presented swiftly, ensuring better adequacy of price to risk;
• incorporating the Moja Firma platform for PZU products, services and solutions for corporate clients. The first product added on the platform is CARGO transport property insurance. Clients can use the platform to issue insurance policies on their own, using their previously concluded general contract;
• Further development and popularization of the Risk PRO program. Risk Pro is a comprehensive prevention program aimed at corporate clients using PZU insurance coverage for property risks. The solution focuses on identifying and minimizing risks in manufacturing and other high-risk enterprises.

In the area of financial insurance, PZU actively supports initiatives that help Polish companies grow while also benefiting the environment and helping to mitigate the adverse effects of climate change. Insurance guarantees provided by PZU are one of the instruments through which PZU supports clients and business partners by securing the performance of contracts in key areas such as energy, construction, and scientific and innovative activities. There are also works on the cooperation with financial institutions and companies representing the defense industry. In Q3 2024, PZU provided an insurance guarantee to secure repayment of the loan to the EIB in support of the green transition process. The secured loan will be partially allocated to green projects for small and medium-sized enterprises (at least 20% of the financing allocated to climate-friendly investments), which is in line with PZU’s strategy to support sustainable development and care for the environment.

In 2024, PZU has also begun exploring ways to simplify the process of selling small guarantees. In addition, PZU continues to work with leasing companies on GAP financial loss insurance, with banks (including PZU Group banks) on mortgage payment insurance.

In order to mitigate emerging risks, PZU conducts constant monitoring of the portfolio and the impact of the geopolitical situation on the portfolio. On an ongoing basis, we are taking measures to mitigate emerging risks.

Activities of PZU Życie under group, individually continued and health insurance included:

• providing new service and sales functionalities that allow clients to modify their insurance much more easily, without having the need for contract renewals or filling out an accession declaration;
• introducing new ranges and further developing the PZU Na Życie Plus insurance offering product launched in Q3 2024).

PZU Życie’s efforts in the area of individual protection insurance and protection and unit-linked insurance:

• Launching sales of the new individual life insurance PZU Pakiet na Życie i Zdrowie in February 2024. It is a package insurance tailored to the needs of all client segments. The new solution stands out from the competition with its attractive coverage, the amount of benefits, and the option of lifetime protection and medical care offered. The insured can also take advantage of additional extensive support under the assistance services offered. The structure of the insurance provides the possibility of rapid modification of the offer including preparation of further packages based on the needs reported by the sales network;
• launching a new individual life and endowment insurance with bonuses PZU Perspektywa na Przyszłość in April 2024. This insurance combines two elements that are of particular importance to clients, i.e., financial security in case of death and capital building for the future. The capital can be further increased during the term of the contract thanks to the bonus mechanism that is unique on the Polish market. The insurance provides a guaranteed benefit in case of both death and living until the end of the insurance period. To match the type of bonus and the level of guarantee to their needs, the client can choose one of two insurance variants – conservative or moderate;
• increasing (in January 2024) the minimum premiums in individual life insurance for PZU Gwarantowane Jutro and PZU Wsparcie Na bliższych products;
• adapting products and processes to the requirements of the amended Recommendation U, which took effect on 1 July 2024. By the end of June, changes were prepared and implemented in key insurance products distributed by PZU Group banks;
• introducing an insurance rider for the death of the insured’s loved ones caused by an accident in November 2024. Coverage includes death as a result of an accident: spouse, child of the insured (regardless of age), parent or parent of the spouse, and sibling of the insured. This is a unique solution on the Polish market for this age group, which enriches the offer of individual continuation and allows the insured to be financially secure in a difficult life situation, such as the death of a loved one (not just a spouse/partner);
• increase (in November 2024) the minimum premiums and sums insured in newly concluded and modified insurance riders: for the death of the insured caused by an accident and for the death of the insured caused by a traffic accident concluded to selected basic insurance.

Key initiatives to support core business operations:

• “Power” project – after the implementation of next-generation valuation methods, the project began to generate benefits. Advanced models enable more accurate segmentation and risk selection at the client level and also optimize underwriting processes and sales channels;
• selecting a new technology solution for data warehousing and the Data Governance model, in order to strengthen and modernize the company’s business analytics capabilities;
• establishing a new robotics team, a Robotic Process Automation (RPA) function has been created in the Digital Transformation department – a team of 10 robotic colleagues who help automate routine work. Robotization is being applied in several key areas of the business, such as by streamlining claims handling and other processes of daily operations;
• development of the self-service portal www.savasld.lt allowing online reporting of claims. The system allows the submission of documents and photos, as well as the use of remote inspection tools for damage assessment supporting the valuation and automatic implementation of compensation payments. All documents and the history of the claims liquidation process are stored in the filing system;
• launching active management of auto claims with a high probability of cash settlement: introducing predictive modeling to increase detection of fraudulent cases;
• optimizing the car repair network in five major cities of Lithuania through improved self-service control mechanisms

PZU Litwa Życie – in the first half of the year, structural changes were implemented in the sales area, while at the same time focusing on optimizing the sales network, both in-house and externally, by increasing the number of brokerage contracts. The focus was on further developing new business options. The Sėkmės kelias (Path of Success) pilot project, launched in October last year, was continued. Its purpose is to develop an effective model for consultants and managers sales. Key components include training sessions, a system for recording, monitoring and compiling feedback from conversations with clients, setting appropriate operational goals, daily debriefing meetings and individual development meetings. Further work was also underway in 2024 to improve functionality in the selfservice system.

AAS BALTA – client experience and prevention initiatives were implemented in 2024:

• development of the BALTA Safety Academy educational platform, which provides an opportunity to share valuable, industry-leading content on prevention and educate the public;
• launch of the “Crazy Safe Summer” campaign, providing free summer accident insurance to more than 28,000 children in Latvia, including Ukrainian children;
• promoting a healthy and active lifestyle, BALTA is an official sponsor of the 2024 Olympic Basketball Qualification Tournament and EuroBasket 2025;
• streamlining claims processes, including the online claims process. At present, the online process is available for nine products, and, depending on a given product, online claims range between 50% and 99% of all claims.
• continued work on automating health insurance claims decisions – several improvements have been implemented, including OCR (Optical Character Recognition) and the use of data analysis tools, which has had a positive impact on the streamlining of the process;
• simplifying the language of communication – GTCI were revised to make them simpler and more understandable to clients.

Lietuvos Draudimas– branch in Estonia – in 2024, it focused on product development and acquiring new clients;

• in April, in cooperation with SEB Bank, sales of a new travel product and a new purchase insurance bundled with a credit card for individuals were launched;
• services have been launched in the self-service portal to buy up insurance products;
• in the second half of the year, a new additional protection was introduced for the Private Property product – an extended warranty on household appliances;
• continued development of cross-sell functionality in the area of motor insurance by generating personalized offers in the online store;
• on 1 November 2024, an act went into effect mandating mandatory liability insurance for health care providers licensed under the Act on Health Benefit Organizations (MedMal, i.e. Mandatory Medical Mall Professional Indemnity Insurance). This meant that all health care providers were required to conclude a contract for TPL insurance by 1 December 2024. As of 31 December 2024, PZU Estonia remained the only provider of this insurance product in the country.

PZU Ukraina – in 2024:

• work was being carried out at the company to systematize the product catalog;
• the product offering was modified and analytical studies were carried out in order to use the results, among other things, in shaping tariffs. The main changes resulted from the need to help the company meet the requirements of the new Insurance Law;
• analyses of portfolios of individual products were carried out regularly, adjusting insurance tariffs to changing conditions.
• the area of voluntary health insurance was actively developed, with electronic medical cards implemented;
• new clients were acquired from among companies relocating from eastern to western regions of Ukraine;
• as part of the development of the sales area, negotiations were conducted and cooperation with large groups of car dealers was restored;
• the Green Card insurance was introduced into a new sales channel – bancassurance;
• an updated borrowers’ accident insurance product has been implemented;
• the scope of local authority in insurance coverage for the category of movable property (excluding tangible assets) against the risk of theft, robbery and robbery has been expanded, which will increase the volume of premiums in corporate business.

With the new act “on motor third party liability” coming into force, starting in 2025, updates for the Motor Third Party Liability and Green Card products were implemented in December. Key changes include updating the price list, adjusting claims handling processes to comply with the law, dropping technical assistance services, and moving to electronic documentation (no more printed contracts).

PZU Ukraina Życie – in 2024:

• continued to provide life insurance services, ensuring the conclusion of new insurance insurance in all sales channels as well as the support and maintenance of the existing portfolio;
• the act on insurance was amended and, consequently, in April 2024 the company received an approval for the sale of all classes of insurance referred to in the act. This means that all products offered by PZU Ukraina Życie comply with the new legislation, thus, the company’s offer has not changed;
• it continued to enter into new insurance agreements only in safe regions of Ukraine, i.e., in regions not affected by any hostilities (in the west and center of Ukraine), and with restrictions on the sum insured, with the list of risks and special requirements due to the occupation and age of the insured;
• in terms of insurance products, the main focus was on the development and implementation of General Insurance Product Terms and Conditions for individual sales channels, and the preparation of documents to enter into insurance contracts: new templates for the insurance application and Certificate of Insurance for agent and broker sales channels;
• a new insurance product “Online Safety” was developed and implemented – it is an electronic policy that protects its owner from the possible negative consequences of traffic accidents and can be implemented in various sales channels as a crossproduct to motor liability policies or as a separate insurance contract;
• new contract templates were prepared and implemented for the banking and corporate sales channel;
• a separate website was launched for PZU Ukraina Życie, www.pzulife.com.ua. It contains all information required by law, including public information, about insurance products and also about insurance brokers;
• at the end of 2024, work was completed on another service – chatbot damage payment in TELEGRAM, which will allow clients to conveniently and efficiently submit documents electronically.

• the positive situation in debt and equity markets;
• high sales activity in the secondary market of EPSs (52 acquisitions of EPSs);
• development of the inPZU service and offering and the support actions;
• systematic contributions as part of ECSs and EPSs;
• a regular increase in the number of savers under ECSs, EPSs and HPP;
• National Central Bank policy in the area of interest rates;
• declines in Polish bond yields, increasing their valuation;
• interest rate cuts by central banks.

In 2024, Bank Pekao’s client offering maintained its strong account acquisition performance by opening 572 000 accounts. Maintaining high account sales in 2024 was influenced by the attractive offer of the Mega Beneficial Account with a gold card and a promotional interest rate on funds in the Savings Account, as well as the promotion of opening a first account for a child as part of ongoing campaigns such as the 800+ application incentive, Children’s Day, “Back to School” and the Christmas offer. In 2024, two major marketing campaigns were conducted to support the sale of the Mega Beneficial Account with Savings Account and the “Open to PeoPay” mobile application.

Bank Pekao opened app. 190 thousand accounts for young people in 2024, which accounted for 33% of new account sales in total. The sale of cards and the PeoPay application for young clients with new images, related to passion, sports and music, as well as gaming images, were actively promoted – more than 105 thousand such cards were issued in 2024. Two recurring promotional deposits, the “Youth Deposit” and the “Birthday Deposit,” were made available to clients between the ages of 18 and 26 in 2024.

The number of new World Premium accounts opened in 2024, offered to clients who deposit funds above PLN 200 thousand in Bank Pekao’s savings and investment products, reached 36.5 thousand, an increase of 17%, as compared to 2023.

Clients in Pekao24 and the PeoPay app were able to take advantage of a new form of setting aside funds for specific purposes under the “Skarbonka” product, made available in 2024. Clients can save on a regular basis by specifying their goal, the time and amount needed to achieve it. The piggy banks are available both for children to set up and operate on their own, as well as for clients over the age of 18.

Individual clients as of 2024 can use #Fundraiser – a BLIK transfer request that makes settlements between friends easier and faster. The money immediately goes to the account of the person who sends the request. Settlements can be made between clients of banks that provide the Fundraiser.

Bank Pekao decided to extend a the special offer for Ukrainian citizens by the end of 2025, that is waving fees for account maintenance, card processing and cash withdrawals from all ATMs in Poland, and outgoing and incoming bank transfers from Ukraine are free.

Activities to support sales of the “Karta Kredyt” continued in 2024. At the end of 2024, nearly 200 thousand clients were already using the Credit Card with Bison. Starting in H1 2024, new clients can get a Credit Card with Bison by applying online via PeoPay or Pekao24.

As part of its partnership with LOT Polish Airlines and Miles&More, Bank Pekao is giving clients the opportunity to collect airline miles for transactions made with the Credit Card with Bison. Clients can exchange their collected miles, for example, for airline tickets, air travel upgrades or hotel reservations. In 2024, a promotion was made available in which Premium clients who did not have a Bank credit card could receive 10,000 miles in the Miles & More program, which could be exchanged for, among other things, a round-trip airline ticket to a city in Europe.

Business clients who have signed a MOTO Biznes credit card agreement between now and 30 September 2024 can take advantage of a promotional credit limit interest rate of 9.99% and free transfers via PekaoBiznes24/Pekao24 dla Firm e-banking from their credit card to their business account at the Bank until the end of March 2025.

In addition, as of the end of the third quarter of 2024, a service called Digital First has been made available for debit cards, whereby a client, as soon as they order a card, can add it to their digital wallet in Google/Apple Pay or Garmin Pay and start paying with it, without needing a plastic card.

In 2024, the value of cash loans granted by Bank Pekao, measured by net volume, rose to PLN 6.3 billion, an increase of 22.4%, as compared to 2023. Meanwhile, the gross value of signed contracts rose to PLN 7.3 billion, up 29.0% y/y. The sales results achieved allowed to increase the value of the loan portfolio by 10%, as compared to December 2023. In 2024, electronic sales of cash loans achieved a record high of PLN 4.8 billion, up 26.6%, as compared to 2023. In 2024, the share of loans concluded through Pekao24 services, the PeoPay mobile application and the Bank’s call center was steadily increased, achieving in the fourth quarter of 2024, a result of 88% of contracts concluded through electronic processes – above the target set in the Bank’s strategy for 2021–2024 while achieving a more than 4-fold increase in the volume of loans concluded through remote channels over the strategy horizon. In the third quarter of 2024, clients who established a relationship with the Bank using remote authorization had the opportunity to receive a cash loan completely remotely.

Bank Pekao also continues to provide loans to finance tuition for paid medical studies. Students can apply for a loan at the beginning of each semester to take advantage of interest rate subsidies, loan guarantees provided by Bank Gospodarstwa Krajowego, as well as full or partial redemption. By the end of 2024, more than 4.2 thousand clients had benefited from the loan and nearly PLN 300 million of semester loan tranches had been disbursed.

In 2024, Bank Pekao entered into an agreement with Terg S.A. Capital Group (owner of the Media Expert brand store chain) for intermediation in offering installment credit in stationary and online stores.

In 2024, Bank Pekao achieved very good results in housing loan sales despite the end of accepting applications for the “Bezpieczny Kredyt 2%” Secure Loan 2%) under the government’s “Pierwsze Mieszkanie” First Apartment) program. Sales of housing loans in 2024 amounted to PLN 11.3 billion, an increase of 8.7%, as compared to 2023. Sales of standard housing loans (less secure 2% loans) rose nearly 2.5 times y/y.

The 2024 mortgage offerings have been continuously updated and adapted to changing market conditions and needs. The offer has been expanded to include preferential terms for loans of more than PLN 500 thousand, as well as the EKO Kredyt Mieszkaniowy, which supports green solutions.

In May, the option was made available to borrowers to apply for a suspension of mortgage payments under socalled statutory loan vacations. In addition, new solutions have been implemented to support borrowers in financial distress in accordance with statutory changes.

Borrowers who were affected by the flood that occurred in 2024 or as a direct result of it were offered an Assistance Package, allowing them to suspend installment repayments for up to 3 months, as well as the opportunity to apply for support under the Borrower Support Fund (from the first day after the Flood Act came into effect).

Bank Pekao continues to offer settlements to borrowers with active CHF housing loans. These loans are almost entirely in the bank’s portfolio as a result of the merger of the part of BPH SA separated in 2007. The program has been met with great interest from clients. Bank Pekao prepared an offer for more than 84% of borrowers, of which 7.4 thousand settlements were signed.

In 2024, in the area of bancassurance, Bank Pekao implemented intensive promotional and sales support activities, which translated into high sales volumes and high dynamics y/y.

In 2024, premiums written from protection insurance were 78% higher y/y, after taking investment products into account, the dynamics reached 67% y/y.

The number of motor insurance policies sold in 2024 was almost three times higher than in 2023, and the number of travel policies was 79% higher y/y. The share of the number of mortgages sold with insurance (for which insurance could be offered) remained stable in 2024 at a high level of 96%, and in terms of the number of cash loans, it was 37%.

In 2024, the assurbanking area launched sales of banking products through a new distribution channel – PZU Tied Agents.

In the area of corporate banking, 2024 continued efforts to automate and digitize the credit process and develop e-banking functionalities for client self-service. In 2024, the value of new loans sold (excluding renewals) in the SME segment reached PLN 6.6 billion, maintaining the high level of previous quarters and 2023. In the MID segment, the value of new loans sold amounted to PLN 13.3 billion.

In the corporate banking segment, the Bank focused on the growth of individual business areas using modern tools that support the activities of advisors, product specialists and analysts. In 2024, the offer of trade finance products was developed, the amount of newly issued guarantees and sureties increased by 7% compared to 2023. In the area of transaction banking, changes have been made in the processes and procedures of products and services aimed at corporate clients (SME, MID and corporations). A simple and short bank account agreement with a modular design (basic agreement) has been implemented, so that a business client gains access to bank accounts and PekaoBiznes24 electronic banking as soon as the document is signed. The bank has a leading position in serving domestic financial institutions, offering top-quality services to insurance companies, investment and pension funds, brokerage houses, financial sector infrastructure entities, cooperative banks and savings and loan associations. It provides services and financing to public sector units. In addition, the Bank offers clients investment banking services, structured financing and project financing, for commercial real estate, including financing for the construction of warehouse space. In 2024, non-treasury debt securities (companies, banks and local governments) for a total amount of more than PLN 52 billion were issued through the Bank.

The Pekao Mutual Fund Management Company (Pekao TFI) is member of the Pekao Group. It is the oldest mutual fund management company in Poland. Pekao TFI provides clients with modern financial products and offers opportunities to invest in the global capital markets. For many years it has been devising savings programs, including programs affording an opportunity to put aside more money for retirement under the third retirement pillar. Pekao TFI also offers portfolio management services and Employee Capital Schemes (ECSs). The company is in the ECS records and its offering is available also through the mojeppk.pl portal.

As at 31 December 2024, the net asset value of Pekao F ’s investment funds (including Employee Capital Schemes) totaled PLN 32.2 billion, up by PLN 8.0 billion or 32.9% compared to the end of December 2023.

In 2024, Alior Bank revised its cash loan price offerings, taking care of their profitability and competitiveness with the market. The loan with a fixed interest rate continued to be the most popular among clients. Consequently, adapting the offer to clients’ expectations and needs, Alior Bank mainly offered products with a fixed interest rate. Clients also continued to have the option of choosing an offer with a variable interest rate.

In 2024, Alior Bank ran a marketing campaign for its new “mi się” loan offer in two iterations: spring and autumn. External communication channels, among others, such as television, Internet, social media and internal communication channels such as the bank’s app, emails and text messages were used. The offer was very popular, hence it attracted new clients. The „mi się” loan was available on Alior Online and Alior Mobile banking in a full, efficient remote process.

The bank also conducted work centered around processes and offers available online. Sales of the „Cancellation” offer for those who did not complete the loan application process continued. Clients using mobile banking were able to take advantage of a dedicated Mobile Loan offer. An attractively priced “Birthday Loan” offer was available for client. Online sales were also supported by temporary price promotions as part of the “Weekendowe okazje” Weekend opportunities) offer.

The focus on the continuous development of online processes and offers was reflected in the clients’ growing interest in the loan sales processes available online. Sales in the online channel brought a new annual sales record of 489 million in 2024, an increase of 25.4% over the previous year. Meanwhile, total cash loan sales increased by 11.9% y/y.

Within the Alior Pay credit limit, a service is available to defer and reschedule debit transactions that have already been made within a personal account with Alior Bank. In 2024, Alior Bank released a new functionality within the Alior Pay credit limit – “Top Up Account.” With the “Top Up Account” option, clients can top up their Alior Bank savings and checking account for free with funds from their Alior Pay credit limit and use them for 30 days for free. If the entire amount is not repaid in a given period, it will be automatically spread into 11 interest-bearing installments. The minimum amount to be credited to the account is PLN 500, and the maximum is PLN 3,000 within the allocated credit limit of the Alior Pay service.

About 50 thousand Alior Pay credit limits were activated in 2024, an increase of 168% y/y. On average, nearly 17% of Alior Pay clients took advantage of the installment option, over 58 thousand transactions have been spread in installments. Alior Pay is a transaction-building tool – Alior Bank saw an increase of more than 16% on client transactions and a 4% increase in the main relationship.

In mortgage lending, despite unfavorable market developments, the volume of new mortgage sales exceeded targeted acquisition levels in 2024. With the deepening market decline and uncertainty about the future of the government’s “Mieszkanie na Start” “Apartment to Start”) program, decisions were made in the second half of 2024 to implement product changes aimed at reversing negative sales trends.

The bank focused on efforts to make the offer for the periodic fixed rate more attractive, to keep the flagship special offer “Own your own M in a big city” extended to more major urban centers, and to optimize the interest rate determination model with additional covenants. In the end, as a result of the measures taken, the Bank exceeded plans by more than 10 p.p., increasing the share of the periodic fixed rate. At the end of 2024, the share of the periodic fixed rate increased by 10 p.p. compared to 2023 reaching nearly 90% share of the volume of new sales.

The Bank’s offer includes mortgages in both variable rate and periodically fixed rate variants with a term of five years. The structure of sales in 2024 is dominated by the housing target, which has reached more than 95%.

In 2024, Alior Bank has made it possible for borrowers to apply for a suspension of their mortgage payments under the so-called 2024 credit vacations. In response to the hardships faced by individuals affected by flooding, the Bank introduced an option to apply for temporary deferral of loan instalment payments for cash loans and instalment credit. Mortgage borrowers impacted by the floods can also see support from the Borrowers’ Support Fund through Alior Bank.

One of the primary acquisition products in the savings area in 2024 at Alior Bank was the Mega Savings Account. In March 2024, its new iteration was introduced, with an attractive interest rate compared to the market for new holders of the Jakże Osobiste Account, which contributed to an increase in the acquisition of these accounts.

In addition, clients with a Personal Account were still able to activate the benefit of a higher interest rate on their savings account. The offer of savings accounts with promotional interest rates was supplemented by:

• the „Family 800+” variant, intended for clients who have applied for a parental benefit through Alior Online or whose personal account at the Bank has been credited with a benefit from the „Family 800+” program;
• the “Bonus dla Młodych” Bonus for the Young) variant, intended for holders of the Like-Minded Account who are at least 13 years old but under 18, and from November 2024 also for children between the ages of 7 and 12.

In addition, in December 2024, the Like-Minded Account was made available for children under the age of 12 with the Alior Kids mobile app available from the age of 7. Thanks to the app, the child can enter the world of finance in a safe and friendly way, learning how to save, using piggy banks that he or she can personalize according to his or her needs. In the app, a child can access a number of products and features such as a wallet, treasury, dedicated card, transfer request and more.

In 2024, Alior Bank also offered term deposits with fixed rates in PLN, USD and EUR to retail clients. Clients could choose the optimal option of the savings period and open a deposit in a selected distribution channel (including Alior Online and Alior Mobile). Clients showed a interest, especially in deposits for new funds in PLN. Continuing efforts to digitize clients, a mobile deposit was offered, available exclusively on Alior Mobile for new users of the app. At the same time, the Bank was developing its retention offerings both in digital channels and in branches.

Insurance from the PZU Group’s offerings linked to cash loans and mortgages played an important role in the bancassurance area in 2024. The Bank modified its product offerings in this regard, primarily taking into account the challenges posed by regulatory changes (the revised provisions of Recommendation U coming into force on 01.07.2024) and systemic changes (implementation by a third-party provider of a new integrated system for insurance sales and service).

Investment and savings insurance also accounted for a high share of the bancassurance business, with the volume of premiums acquired increasing by as much as about 75% in 2024 compared to the previous year.

Stand-alone insurance products not linked to bank products, i.e., travel, motor and real estate insurance available online, continued an upward trend. Sales of these insurances were supported by marketing campaigns based on promotions and discounts, among other things. Particularly high growth in the number of policies sold was in travel insurance reaching a 41% increase in the number of policies to the previous year. The sale of policies offered online remains a strategic direction for the development of bancassurance offerings.

The bank raised more than PLN 0.5 billion in gross premiums written for the PZU Group in 2024 from the sale of insurance to individual clients, an increase of 25% over the previous year.

The bank’s activities in the business segment focused on implementing key projects that set the course for the business client segment. Key initiatives included expansion of RES financing offerings, implementation of a new online banking project, automation and development of online processes.

Alior Towarzystwo Funduszy Inwestycyjnych or Alior TFI (formerly Money Makers) is part of the Alior Bank Group. The company was established in 2010 and its operations, originally as a brokerage house, focused on asset management services. Following a transformation, from July 2015, it has been operating as a Mutual Fund Management Company.

Alior Ban ’s cooperation with its subsidiary Alior TFI comprises primarily the company’s core business, i.e. development and management of mutual funds and representing them vis-a-vis third parties

As at 31 December 2024, the net asset value of Alior F ’s investment funds totaled PLN 3.2 billion, up by PLN 1.6 billion or 99.8% compared to the end of December 2023.

PZU Pomoc PZU Pomoc provides auxiliary services to PZU Group companies:

• managing the PZU repair network – at the end of 2024, the company cooperated with 852 repair shops;
• organizing motor assistance services for LINK4 and InterEurope (a company outside the PZU Group), and additionally, providing assistance services for SOS Ukraine;
• conducting salvage auctions and sales after loss and damage incidents;
• supporting technical claims handling in motor claims;
• handling assistance products for PZU and PZU Życie (among others, legal consulting, organization of assistance services);
• managing the loyalty program, PZU Pomoc w Życiu Club – more than 2.2 million club members at the end of 2024;
• managing PZU Sport in the form of sports and recreation subscriptions, the PZU Benefits platform, and operating a loyalty program for individual shareholders of PZU called Moje Akcje PZU.

PZU LAB is a company dealing with advisory services and assistance in implementation of all kinds of solutions improving the security of the strategic corporate clients of PZU and TUW PZUW.

The company cooperates with numerous academic centers and experienced experts (local and foreign). Constantly seeks new and effective technological solutions to enable mitigation of the risks that have the greatest impact on the insurance activity.

The PZU LAB team has developed methods for cooperation with the existing and prospective clients. First, the engineers identify critical installation sites, simulate critical events such as fire, flooding or explosion, and determine their consequences. Then the possible scenarios and the methods of minimizing the negative consequences are discussed. Ultimately, PZU LAB engineers implement innovative technological solutions in client companies that are to improve their safety.

PZU LAB has implemented Poland’s first product certification system in property damage prevention. The purpose of the certification system is to improve the effectiveness of products deployed to ensure the safety of enterprises and thus to reduce the instances of damage and the scope of losses to company assets. Certified products are marked with the patented “PZU LAB Approved” logo.

The company conducts intense safety-related educational and promotional activities. At the initiative of PZU LAB, the Maritime Industry Safety Forum, the Energy Industry Safety Forum and the Wood Industry Safety Forum are held annually. Moreover, a series of training courses entitled “Pyramid of competences” was launched for all participants in the insurance market, aiming to increase the level of knowledge in risk management among businesses.

This approach signifies an evolution in client relations. PZU ceases to be only a seller of insurance and becomes a risk management advisor.

PZU Finanse sp. z o.o. is a service company established to keep accounting ledgers for subsidiaries of the PZU Group excluding PZU and PZU Życie and PTE PZU).

PZU Centrum Operacji provides services supporting the operation of PZU Group companies. PZU Centrum Operacji SA’s line of business is the provision of the following services:

• auxiliary services related to insurance and pension funds;
• constant intermediation in conclusion of insurance agreements, financial and investment agreements, and assistance agreements;
• Contact Center;
• Data Center;
• printing services;
• IT services;
• keeping the accounting records;
• human resources and payroll;
• brokerage in selling and redeeming investment fund participation units and titles, as well as investment advice with regard to such instruments.

The company’s line of business is investment activity through the investment of free funds and development activity in the construction of commercial real estate.

The company conducted the office and retail project in a prestigious location in Wroclaw at ul. Oławs a 35 Plac Dominikański) in a venue occupied for the past several decades by an office building owned by PZU. This project is partially intended for the PZU Group’s needs and partially for lease. The investment is intended partly for the PZU Group’s needs and partly for rental. Currently, the Company is engaged in the business of leasing office and retail space in the building.

The core business of the Company is the commercial rental of office and commercial space in the City Gate office building owned by the Company in Warsaw.

The services of the Conference Center are provided on a designated area of nearly 800 sq m; the scope of the services includes commercial rental of professionally equipped conference and training rooms for the organization of conferences, business meetings, training courses and seminars. The services of the Ogrodowa 58 Business Center are provided on a designated area of 1480 sq m; the scope of the services includes commercial rental of 135 modern workstations

Since October 1999, the PZU Group has held an equity stake in Armatura Kraków and since November 2020, PZU has been the sole shareholder.

The business of Armatura Kraków lies outside the domain of financial and insurance services. The group is a leading manufacturer in the sanitary and heating industry in Poland. It specializes in the manufacture of bathroom and kitchen taps, aluminum central heating radiators, shower cabins and screens, and a wide range of valves.

On 28 September 2017, PZU acquired shares in PZU Corporate Member Limited, entitling it to 100% of votes at the shareholder meeting. The company is a member of Lloyd’s, a mar et for insurance companies, bro ers and agents, bringing together nearly 100 syndicates. PZU Corporate Member is handled by Argenta Holdings Limited agency, which deals with the ongoing activities of syndicates, invests their funds and employs underwriters.