Capital and dividend policy 2021-2024

On March 25, 2021, the PZU’s Supervisory Board adopted a resolution approving the PZU Group's Capital and Dividend Policy for 2021-2024. The adopted policy is a continuation of the principles set out in the PZU Group's Capital and Dividend Policy for 2016-2020.

 

In accordance with the Policy, the PZU Group endeavors to do the following:

1) manage capital effectively by optimizing the usage of capital from the Group’s perspective;

2) maximize the rate of return on equity for the parent company’s shareholders, in particular by maintaining the level of security and retaining capital resources for strategic growth objectives through organic growth and acquisitions;

3) ensure sufficient financial means to cover the Group’s liabilities to its clients.

 

The capital management policy rests on the following principles:

1) manage the PZU Group’s capital (including excess capital) at the level of PZU SA;

2) sustain target solvency ratios at the level of 200% for the PZU Group, PZU SA and PZU Życie SA (according to Solvency II);

3) maintain the financial leverage ratio at a level no higher than 25%;

4) ensure funds for growth and acquisitions;

5) maintain the financial conglomerate’s surplus own funds above the pertinent requirements for solvency;

PZU SA will not issue any new shares for the duration of this Policy.

It is assumed that certain temporary deviations in the actual solvency ratio above or below the target level may occasionally occur.

 

The PZU SA and PZU Group’s dividend policy rests on the following principles:

1) The PZU Group endeavors to manage capital effectively and maximize the rate of return on equity for the parent company’s shareholders, in particular by maintaining the level of security and retaining capital resources for strategic growth objectives through acquisitions;

2) the dividend amount proposed by the parent company’s Management Board which PZU SA pays for the respective financial year is determined on the basis of the PZU Group’s consolidated financial result attributable to equity holders of the parent company, where:

a) no more than 20% will be earmarked as retained earnings (supplementary capital) for goals associated with organic growth and innovations as well as execution of growth initiatives;

b) no less than 50% is subject to payment as an annual dividend;

c) the remaining part will be paid in the form of annual dividend or will increase retained earnings (supplementary capital) if significant expenditures are incurred in connection with the execution of the PZU Group Strategy, including, in particular, mergers and acquisitions

- subject to items 3 and 4;

4) according to the Management Board’s plans and risk and solvency self-assessment of the parent company, the own funds of the parent company and the PZU Group following the declaration or payment of a dividend will remain at a level that will ensure fulfillment of the conditions specified in the capital policy;

5) when determining the dividend the regulatory authority’s recommendations concerning dividends will be taken into consideration.

Capital and dividend policy 2016-2020

3 October 2016 the Company’s Supervisory Board adopted a resolution to approve the PZU Group’s Capital and Dividend Policy for 2016 - 2020 („Policy”).

The introduction of the Policy ensues from the implementation as of 1 January 2016 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), as amended, the Act on Insurance and Reinsurance Activity of 11 September 2015 and the expiration of the „PZU Group’s Capital and Dividend Policy for 2013 – 2015” updated in May 2014.

According to the Policy, the PZU Group strives to achieve the following objectives:

  1. manage capital effectively by optimizing the utilization of capital from the Group’s perspective;
  2. maximize the return on equity from the viewpoint of the parent company’s shareholders, in particular while observing the level of security and maintaining capital resources for the purposes of strategic growth through acquisitions;
  3. ensure sufficient financial resources to cover the Group’s obligations to clients.

The Capital Management Policy is based on the following principles:

  1. managing the PZU Group’s capital (including its excess capital) at the level of PZU SA as the parent company; maintaining the target solvency ratios at the level of 200% for the PZU Group, PZU SA and PZU Życie SA (according to Solvency II); maintaining the PZU Group’s financial leverage ratio at a level no higher than 0.35; ensuring funds for growth and acquisitions in the upcoming years; having PZU SA refrain from a secondary public offering during the term of validity of the Policy.

The Dividend Policy of the PZU Group and PZU SA is based on the following principles:

  1. the PZU Group strives to manage capital effectively and maximize the return on equity from the viewpoint of the parent company’s shareholders, in particular while observing the level of security and maintaining capital resources for the purposes of strategic growth through acquisitions;
  2. the dividend proposed by the parent company’s Management Board, to be paid by PZU SA for a given financial year, is determined on the basis of the PZU Group’s consolidated financial result attributable to the parent company, where:
    1. no more than 20% will be allocated to retained earnings (supplementary capital) for purposes related to organic growth and innovation and to pursue growth initiatives;
    2. no less than 50% will be subject to payment in the form of an annual dividend;  the rest will be paid in the form of an annual dividend or will be allocated to retained earnings (supplementary capital) in the event of incurring extensive capital expenditures in a given year related to the pursuit of the targets underpinning the PZU Group’s Strategy, including in particular mergers and acquisitions;
      subject to items 3 and 4 below;
  3. according to the Management Board’s plans and the parent company own risk and solvency assessment, the own funds of the parent company and the PZU Group, after the declaration or payment of a dividend, will remain at a level ensuring satisfaction of the conditions prescribed by the Capital Policy;
  4. the regulatory authority’s dividend-related recommendations will be taken into consideration when specifying the dividend.

Additional materials:

Presentation – dividend policy PZU
- IR release

Dividend for 2019/2020

16 June 2021 the Company’s Ordinary Shareholder Meeting adopted a resolution on the distribution of PZU SA’s net profit for the year ended 31 December 2020 and the amount transferred from supplementary capital created from the net profit generated for the year ended 31 December 2019, in which it decided to allocate for the payment of a dividend the amount of PLN 3,022,330,500.00 (three billion twenty-two million three hundred-thirty thousand five hundred Polish zloty), or PLN 3.50 (three Polish zloty and 50/100) per share. The number of shares covered by the dividend is 863,523,000.

The record date as at which the list of shareholders entitled to the dividend for the financial year ended 31 December 2020 is established has been set for 15 September 2021. The dividend payment date has been set for 6 October 2021. 

Dividend for 2018

On 24 May 2019 the Company’s Ordinary Shareholder Meeting earmarked 2,417,864,400.00 (in words: two billion four hundred and seventeen million eight hundred and sixty-four thousand four hundred zlotys), i.e. PLN 2.80 (in words: two zlotys and eighty groszy) per share as a result of distributing the earnings for the financial year ended 31 December 2018. 

The date for determining the list of shareholders entitled to the dividend payout for the financial year ended 31 December 2018 has been set for 14 August 2019. The dividend payout date has been set for 5 September 2019.

Dividend for 2017

On 28 June 2018 the Company’s Ordinary Shareholder Meeting earmarked 2,158,807,500.00 (two billion one hundred fifty eight million eight hundred seven thousand five hundred Polish zloty and 00 grosz), i.e. PLN 2.50 (two Polish zloty and 50 grosz) per share as a result of distributing the earnings for the financial year ended 31 December 2017.

The date for determining the list of shareholders entitled to the dividend payout for the financial year ended 31 December 2017 has been set for 12 September 2018. The dividend payout date has been set for 3 October 2018.

 

Dividend for 2016

On 29 June 2017 the Company’s Ordinary Shareholder Meeting earmarked 1,208,932,200.00 (one billion two hundred eight million nine hundred thirty two thousand two hundred Polish zloty) as the dividend for shareholders, which constitutes PLN 1.40 (one Polish zloty and forty grosz) per share as a result of distributing the earnings for the financial year ended 31 December 2016.

The date for determining the list of shareholders entitled to the dividend payout for the financial year ended 31 December 2016 has been set for 29 September 2017. The dividend payout date has been set for 19 October 2017.

Dividend for 2015

On 30 June 2016 the Company’s Ordinary Shareholder Meeting earmarked 1,796,127,840.00 PLN (one billion seven hundred ninety-six million one hundred twenty-seven thousand eight hundred forty Polish zloty) as the dividend for shareholders, which constitutes PLN 2.08 (two Polish zloty and 08 grosz) per share as a result of distributing the earnings for the financial year ended 31 December 2015.

The date for determining the list of shareholders entitled to the dividend payout for the financial year ended 31 December 2015 has been set for 30 September 2016. The dividend payout date has been set for 21 October 2016.

Dividend for 2014

On 30 June 2015 the Company’s Ordinary Shareholder Meeting earmarked PLN 2,590,569,000.00 (say: two billion five hundred ninety million five hundred sixty-nine thousand Polish zloty and 00 grosz) as the dividend for shareholders, which constitutes PLN 30.00 (say: thirty Polish zloty) per share as a result of distributing the earnings for the financial year ended 31 December 2014.

The date for determining the list of shareholders entitled to the dividend payout for the financial year ended 31 December 2014 has been set for 30 September 2015. The dividend payout date has been set for 21 October 2015.

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