PZU reported good results from its core insurance business, but the net result was hit hard by the banks it controls. The reason for the credit vacation.
Poland's largest insurer reported a net profit of PLN 660 million for the third quarter of 2022, down 170 percent from a year earlier and 175 percent from the previous quarter. However, the profit was 13 percent above market expectations, mainly due to higher-than-expected gross premiums. The insurance business reported a net profit of PLN 784 million in the third quarter (+39 percent year-on-year and 41 percent quarter-on-quarter), while the banking business reported a loss of PLN 124 million (PLN 176 million profit a year ago and PLN 166 million in the second quarter of 2022).
After three quarters of 2022, PZU Group's net profit is PLN 2.14 billion, down 9.8 percent y/y. Return on equity (ROE) in the period reached 17.5 percent.
PZU said the group's total result was affected by charges resulting from regulations on banking operations. Their negative impact amounted to PLN 547 million in the third quarter, and cumulatively to PLN 750 million. This is because PZU controls and consolidates two leading banks: Pekao and Alior.