Under its new strategy, PZU Group aims to focus on its core insurance business and its digital ecosystem, such as the mojePZU platform, over the next three years. Among its investment priorities, the group plans to allocate 1 billion PLN to the healthcare sector by 2027. Additionally, PZU Group intends to play a more active role in Poland’s energy transition, all within a streamlined organizational structure.
“The Future with Certainty” is PZU Group’s new strategy for 2025–2027, which envisions the group becoming more profitable and cost-efficient within three years. The goal is to increase profits by nearly 2 billion PLN, from 4.3 billion PLN to 6.2 billion PLN.
“The key aim of the strategy is the value we will generate for shareholders. We are simplifying and preparing for profitable growth by reorganizing the group’s assets and operational model. This allows us to focus on our core business, which is insurance, including health insurance,” says Paweł Godek, Managing Director of Strategy and M&A at PZU Group, in an interview with Newseria.
Simplified Structure and Consolidation of Banking Assets
The strategy focuses on four pillars, the first of which is simplicity. As part of this, PZU is simplifying the structure of its capital group assets. On December 2, the insurer signed a letter of intent with Bank Pekao SA regarding the acquisition of shares in Alior Bank. The planned sale aims to consolidate banking assets under the Bank Pekao SA umbrella. PZU will maintain control of its banking assets but through a different model.
“We want Alior Bank to maintain, and even accelerate, its market dynamics. Therefore, we are giving the new management time to familiarize themselves with the organization and enhance growth. This is good news for both customers and employees,” Godek adds.
Simplifying the group’s structure also involves establishing a new operational model with eight business divisions. PZU estimates that these structural simplifications will result in savings of 400 million PLN.
Focus on Core Insurance Business
The second pillar of the strategy is focusing on core business, specifically insurance. The strategy targets a core business profitability rate exceeding 19%. The measures in the insurance segment are expected to generate an additional 7.5 billion PLN in revenue by 2027.
“In the new strategy, we plan to accelerate growth in corporate property insurance, driven by trends related to the green transformation and investments under the National Recovery Plan (KPO),” emphasizes Godek.
According to the strategy, PZU’s market share in business insurance stands at about 37%, with this segment growing at an average annual rate of 18%, compared to 13% in the overall market. PZU aims to increase corporate property insurance revenues by over 25% by 2027, largely by participating in major investments, including green transformation projects under the KPO.
“We are also focusing more on developing individual protection insurance, where PZU has historically been less active unless these were bundled products or renewals for Silver Economy customers or through bancassurance channels,” says Godek.
In the bancassurance sector (insurance linked to banking products), PZU plans to increase the number of insured clients by over 50%, aiming for a market share exceeding 25%.
“We want to enhance our efforts and adapt the distribution channel accordingly. We believe that the penetration of property and life insurance in the Polish economy will grow, and we want to grow along with this trend,” Godek explains.
Addressing the Insurance Coverage Gap
Godek notes that over 60% of Polish properties currently lack adequate insurance coverage.
“The insurance gap in property insurance is significant, as highlighted during recent floods. Many Poles are unaware that their properties are insured for amounts lower than their actual value. This often happens because property insurance is sold alongside mortgages, and as mortgage values decrease, property values have increased significantly in recent years. We see a large potential here and an opportunity to educate our customers,” he says.
Digital Expansion and Health Sector Investments
The mojePZU platform will serve as the main communication channel with customers. PZU aims to increase the number of clients using its digital services to 8 million by 2027, up from the current 5 million. The platform’s expansion is part of the third pillar, development, which includes growing the digital ecosystem, expanding health services with 1 billion PLN in investments, and extending the group’s reach into international markets.
“We are already a leader in the Baltic insurance markets and are building competencies in international business management. Our strategy aims to explore other markets, learn about risks in those markets, and do so through lighter models without major capital investments. This includes active reinsurance, large brokerage contracts, and partnerships, such as bancassurance models outside Poland,” Godek explains.
Commitment to Energy Transition and Social Engagement
The fourth pillar, engagement, involves promoting a healthy and active lifestyle, supporting socially significant events, and educational initiatives to build societal resilience. PZU is also committed to supporting Poland’s energy transition.
“This engagement is not just about ESG-driven PR. It also involves participating in energy transformation and building resilience for our individual and corporate clients. PZU intends to play an active role in financing climate transformation. We approach this not only from the perspective of a property insurance company but also as a group, including Bank Pekao SA, which is well-positioned to lead energy transition financing in Poland. PZU contributes an essential element to this transformation: insurance and insurance guarantees,” Godek concludes.
