We achieved this with the simultaneous streamlining and automation of the servicing processes.
We are looking into the future at the clear economic recovery in the second half of 2013. This applies to both growth in GDP and industrial production, as well as retail sales. That hence opportunities for faster growth and a further improvement in the PZU Group’s results.
PZU is aiming to maintain the highest standards of service. The extensive satisfaction surveys have shown that 91% of customers are satisfied with the claims handling process. The NPS (Net Promoter Score)
among customers who experienced the claims handling process or received a payment of benefits, was as high as 29%. As many as 50% of customers indicated that they are active promoters of PZU.
The PZU Group has a solvency ratio which is higher than average for the insurance sector.
Social responsibility – of the whole firm and every employee – is the foundation of all PZU’s activities and a prerequisite for sustainable development. The CSR
The rate of unemployment recorded in 2013 was higher on average than in 2012 (13.5% compared with 12.8%). However, symptoms of improvement in the situation on the labour market have been noticeable since the middle of the year. The rate of growth of employment in companies started to increase from May and, at the end of 2013, employment in this sector was slightly higher than a year earlier (by 0.3% y/y in
Minister of Finance Regulation of 8 March 2013 amending the Minister of Finance Regulation of 24
Insurance Guarantee Fund and the dates of payment of this contribution, which has come into force on
Operating conditions of the insurance sector in Poland were also influenced by changes introduced to other areas of economic life also, including: Regulations on the banking sector, including the introduction of the amended Recommendation M on operational risk management at banks, which restricted the sale of policies with term deposits through bancassurance. Most of the provisions of this recommendation entered into force on 1 July 2013.
of the value of the gross written premiums per year;  also changed the maximum technical rate – its current level is 1.88%;  accepted that the minimum indexed sum insured in TPL insurance of the insurance agent is EUR 1.25m in the case of one insurance event and EUR 1.88m for all insurance events per year;  adopted a resolution on the guidelines regarding the combating of money laundering, according to which insurance companies must guarantee that their foreign branches will comply with these guidelines.
A relatively moderate increase in inflation will help sustain the growth in purchasing power of households, even with a modest increase in nominal salary growth.
Apart from events of a catastrophic nature (such as floods, drought and spring frost), the main factors which can affect the situation of the non-life insurance sector in 2014, include:  The expected economic recovery in Poland.
In 2013, PZU Życie adjusted its product offering to the increasingly greater customer requirements, the actions taken by the competition and the changing legal situation.
Company decided to extend the period of liability in the product from 3 to 5 years. Furthermore, it changed its approach to the choice of instruments, on which the product is offered and, in June 2013, it launched the sale of Świat Zysków [World of Profits], which is based on an index investing in funds managed by TFI PZU.
The activities of the open-ended pension funds in 2013 were also affected by the changes made in the legal regulations. Apart from the statutory prohibition to conduct personal sales which was already in force in 2012, the principles of allocating new members to the
Open-Ended Pension Funds from the people who, despite such an obligation, had not joined any fund, were changed in 2013. In accordance with the currently applicable regulations, only those funds which had rates of return that were higher in the last two settlement periods than the weighted average rate of return of all funds and which have net assets that do not exceed 10% of the total net assets of all funds take part in the allocation through a draw. The shares of the pool of people allocated are equal for all the funds satisfying these conditions. The Social Insurance
The gross written premium on the non-life insurance market in three quarters of 2013 was UAH 19.7bn, or, in other words, it was 34.8% higher than in the corresponding period of the previous year. This growth was primarily due to the increase in sales of voluntary non-life insurance (40.4% premium growth), including financial risk insurance (74.8%) and voluntary TPL
The written premium collected by PZU Ukraine in 2013 amounted to UAH 119.9m and was 23.9% higher than in 2012. This growth was mainly achieved in the bancassurance channel as a result of sales of endowment policies.
The structure of non-life insurance in 2013 was dominated by motor insurance, which accounted for 58.8% of the gross written premiums, whereby the share of MTPL insurance of vehicle owners was 35.5%.
According to the Lithuanian central bank’s data, the gross written premium of life insurance companies was
Swedbank, which had a 21.9% market share. The next places were taken by Aviva (20.3%) and SEB (20.3%).
The new PZU is a vision of a strong brand that uses modern technologies to communicate with customers. The new PZU is also an institution that successfully manages its customers’ funds using the competencies of the largest asset management company in Poland and the new opportunities which appear on the market.
PZU Group:  will maintain its present position on the market of both non-life and life insurance in Poland, simultaneously maintaining the profitability of these businesses;  will continue international expansion in the new form and possibly in cooperation with a financial investor;  will develop activities on the savings / regular saving market;  will seek new opportunities to introduce new activities - the PZU Group has the ambition to become the pioneer and creator of the health insurance market in Poland.
PZU MBA programme dedicated to managers and directors with the highest development potential, which is a unique initiative on the
1. 132.2% increase in the gross written premium in the individual insurance segment compared with 2011.
2. Actions were taken to strengthen the image of the PZU Group as a reliable employer among employees, students and professionals. Another cycle of internships and traineeships was launched at the PZU Group as a part of the activities aimed at strengthening the position of the PZU Group as the preferred employer.
3. PZU Sport Team was launched for employees to play sports together.
2. The PZU Group focuses on its customers in all its activities and aims to build an image that is consistent with the positioning of the PZU brand, “you can count on us”.
The PZU and PZU Życie organizational structure also has committees – collective bodies with decision-making and consultative powers.
employees sold insurance at their own branch offices (primarily to corporate and group customers).
Claims handling, for the customer, is the moment of truth in contacts with the insurer. Satisfying his expectations in the claims handling process is the key to building his ties with PZU. Therefore, extensive work was conducted in 2013 to streamline and shorten this process.
The majority of employees in PZU and PZU Życie were women. At the end of 2013, they represented 63.7% of the total number of employees in these companies.
PZU and PZU Życie, while the employment downsizing applied to 538 employees of PZU and PZU Życie.
 Champions’ breakfasts. These are informal morning meetings during which employees who submit interesting questions or issues have the opportunity to discuss them with the president
b o n d y ie ld s y e a r e n d 5Y bond yields - year end Change in WIG - year end
During 2013, the value of quoted equity instruments and non-Treasury bonds and borrowings increased as a result of the Group’s new investment strategy involving, among other things, the further diversification of the investment portfolio. In December 2013, the value of quoted equity instruments amounted to 6.7%, while non-Treasury debt securities and borrowings amounted to 8.9% of the Group’s whole investment portfolio compared with 4.8% and 6.9% respectively in 2012.
7 The investment portfolio covers financial assets (including investment contracts), investment properties and financial liabilities (negative valuation of derivative instruments and reverse repo liabilities).
Non-current assets – in the form of intangible assets, goodwill and property, plant and equipment – were disclosed in the balance sheet at PLN 1,244.5m. They comprised 2.0% of total assets. In particular, in 2013 the balance of intangible assets increased by PLN
Armatura Group incurred PLN 88.5m and SPVs established for the investment funds incurred: PH3 Sp z o.o. SKA – PLN 62.7m and PORTFEL PB2 Sp. z o.o. -
Życie) and surplus of income from investing activities of PZU and PZU Życie corresponding to value of technical provisions for noninvestment insurance products over the risk free rate.
higher than in the previous year. The increase resulted mainly from an increase in the prices of the insurance liability hedging portfolios denominated in foreign currencies.
Świat Zysków through the Group’s own sales channels, which was higher than that of the prior year, and the level of sales of the savings product with a protection component and regular premium Plan na Życie. The high sales of those products more than offset the discontinuation of the endowment insurance contracts concluded in the 1990s.
 A material increase in other net technical provisions. These increased by PLN 712.4m, which was PLN 118.3m more than in the prior year. The large increase in these provisions was related to high sales of investment insurance through the bancassurance channel.
 A lower amount of net insurance claims and benefits, because of the lower level of payments of short-term endowment contracts of an investment nature through the bancassurance channel. They amounted to PLN 1,329.7m, i.e.
Return on assets (ROA) (net profit/loss y/y /average assets) x 100% 5.6% 6.0% 4.6% 4.7% 6.7%
 Measurement. The materiality of all risks from the list of risks is analysed. Every risk which is considered material and measurable or difficult to measure is subject to a measurement process comprising the definition of the measures of the risk which are adequate to the type and materiality of risk and availability of data. Risk measurement is performed by specialist units. The Risk Department is responsible for developing tools, as well as for measuring limits, including assessing the appetite for risk, risk profile and limits of risk.
The compliance risk management process is coordinated by the Compliance Department, which was established on the basis of resolutions of the
obtains a gross written premium from inward reinsurance from activity on the domestic and foreign market, mainly through optional reinsurance.
In accordance with the Act on Insurance Activity, an insurance company with its registered office on the territory of Poland is obliged to maintain its own funds at an amount of no less than the solvency margin and no less than the guarantee capital. Because of the lack of regulations defining the calculation of the solvency margin and the amount of own funds for the group,
PZU Życie by Standard&Poor’s, together with those of the previous year.
Security Policy) and corporate values adopted by the Group are the benchmark for all ethical issues.
We care for ethics and transparency in each stage of preparing and launching products available in our offer.
Lubelskie and Podkarpackie Province;  Krajowy Fundusz na rzecz Dzieci in Warsaw, funding of multi-disciplinary workshops for talented youth;  Centrum im prof. Bronisława Geremka
The Employee Volunteer program was initiated in 2012 and in 2013 included 45 projects, among them 33 initiatives of employees submitted for the contest
PZU Code of Good Practices. The document is available on the website: 30d2f3-0ffa-4b72-add8-c53f3668c66a&groupId=10172; 10.2 Application of Good Practices of Companies
I.9 concerning gender parity principle to be followed in the Company's management and supervisory bodies, PZU has always pursued the policy of appointing competent, creative, experienced and educated people to the Company's bodies. The composition of the Management and Supervisory Board is determined based on a decision of the Supervisory Board or a General
appointed KPMG Audyt Sp. z o.o. sp. k. with the registered office in Warsaw, ul. Chłodna 51, 00-867
The work referred to above will include three subsequent financial years ending, respectively,
Meeting, in addition to those specified in the Commercial Companies Code and the By-laws of
Resolutions are passed in an open ballot. The secret ballot vote is used when appointing and dismissing members of the Company's bodies or liquidators, in cases of their personal responsibility towards the Company, and in personal cases, except when an open ballot method is required by the applicable law, upon request of any shareholder present or represented at the General Shareholders' Meeting.
He has a degree from the Faculty of Sociology of the University of Warsaw. In 1996, he completed post-graduate studies in turnaround management and received a diploma from the Institute of Organisation and Management in the Industry “ORGMASZ ” and Swedish M-
Germany, Foreign Trade Theory Institute. He has won a number of prestigious awards, including the title of Bankowy Menedżer Roku 2010 and Lider Polskiego Biznesu Business Centre Club received in 2009. In 2006 he was honored with Krzyż Kawalerski Orderu Polonia Restituta and in 2011, Krzyż Oficerski Orderu Polonia Restituta (Order of Rebirth of Poland).
In 1991 - 1994 acted as Foreign Department Director in the National Bank of Poland. In 1994-1995 an advisor in Bayerische Hypothekenund Wechsel-Bank AG in Munich, and from 1995 to 1998 Deputy Chairman in the Management Board of Zarządu Hypo-Bank Polska S.A. and in ltach. In 1999-2002 Deputy Chairman in Bank Gospodarki Żywnościowej S.A. In 2002-2011 Chairman of the Management Board in Nordea
in economics. In 1993 completed studies in banking, finance and capital markets at Exeter, UK, and in 1996 economic studies at Free
University of Warsaw and Deputy Rector in charge of scientific research and cooperation, University of Warsaw. He is a lecturer at
He is a member of The Geneva Association – a nonprofit organization associating 80 Board Chairmen from top world insurance companies. He represents PZU at annual meetings of the World Economic
Barbara Smalska – Member of the Management Board of PZU / PZU Życie
Emerytalnych Petrus SA and the Chairman of the Management Board of Fiat Ubezpieczenia SA. From 2000 to 2008 he was the Chairman of the Management Board of Skandia Życie Towarzystwo
The Company may be represented by two members of the Management Board acting jointly or one member of the Management Board acting with a commercial proxy.
Agreements significant for the operations of the PZU Group, including those concluded between shareholders