Letter from the President to Shareholders

Dear Sir/Madam,

together with the Members of the Management Boards of the Companies that make up the PZU Group, I am providing you with the 2024 Activity Report.

We will soon celebrate the 15th anniversary of PZU SA’s stock launch, which I had the pleasure of preparing and carrying out together with my colleagues at the time. Back then, enjoying the success of the largest IPO in Poland and Europe, I did not think how difficult and complex a world PZU would one day have to operate in. In 2024, the negative consequences of climate change, resulting in increasingly frequent natural disasters and mass claims, made themselves known exceptionally strongly. The numerous tensions and risks affecting macroeconomic conditions persisted, from the war in Ukraine, through growing trade conflicts and deglobalization processes, to profound demographic shifts. This all created a very challenging environment for doing our business. It gives me satisfaction to know that the foundations of PZU’s strength and stability, once laid in the run-up to the IPO and in the years that followed, still allow the PZU Group to successfully face its toughest challenges.

The aforementioned natural disasters clearly affected the PZU Group’s net result in 2024, but to a lesser extent than initially anticipated in many market analyses. These events have shown, on the one hand, the scale of the risks that insurers increasingly have to face, but also, on the other hand, that PZU is well prepared and highly resilient.

PZU Group maintains high capital security. It permanently maintains a Solvency II ratio well above 200%. S&P Global Ratings, while maintaining its high rating for PZU and its main subsidiaries at A-, changed its outlook from stable to positive. The secure structure of the investment portfolio, as well as effective reinsurance programs carried out with highly rated partners give the PZU Group great stability and a strong basis to continue an attractive dividend policy for investors. Since the stock launch 15 years ago, the value of dividends paid by PZU has already exceeded PLN 33 billion, the equivalent of 80% of the company’s capitalization at the end of last year.

I would like to thank employees, agents and all business partners for contribution to building the value of the PZU Group. I am delighted to have the privilege to lead such a great company again and to work with a professional and dedicated team. I see the results generated in 2024 as a good starting point for PZU’s continued transformation into a capable and effective organization, in terms of its operations and business, that is run in a transparent and logical way, satisfying the highest standards in corporate governance. I am convinced that together we will strengthen PZU’s position as the undisputed leader in the insurance market, build the position the brand deserves in the investment and private medical care markets, and increase the benefits for shareholders, customers, our other stakeholders, and society as a whole