Reinsurance activity

Reinsurance protection in the PZU Group secures insurance activity. It limits the consequences of the occurrence of catastrophic phenomena that could adversely affect the financial standing of insurance undertakings. This task was performed through obligatory reinsurance contracts supplemented by facultative reinsurance.

Reinsurance contracts – PZU

PZU uses concluded reinsurance contracts to mitigate its exposure to catastrophic losses (e.g. flood, hurricane) through, among others, a catastrophic non-proportional excess of loss contract and to the consequences of large one-off losses by non-proportional excess of loss contracts protecting property, technical, marine, aviation, TPL and MTPL portfolios.

PZU’s reinsurance partners have high S&P/AM Best ratings. That evidences the reinsurer’s robust position and affords security.

PZU’s risk is also mitigated through reinsurance of the financial insurance portfolio. In 2015, the main partners providing treaty reinsurance cover to PZU were Swiss Re, Hannover Re, Scor, Munich Re, and Lloyd’s. As per S&P/AM Best, ratings of PZU reinsurance partners are high, which is an evidence of reinsurer’s good financial standing and guarantees security to the Company.   

PZU’s activity in the area of inward reinsurance includes other PZU Group’s insurance companies. Further commitment to the protection of Baltic companies and Link4 resulted in an increase in the related written premium.

In addition, PZU obtains a gross written premium from inward reinsurance from activity on the domestic and foreign market, mainly through facultative reinsurance.

Reinsurance contracts - PZU Życie

Outward reinsurance contracts concluded by PZU Życie protect PZU Życie’s portfolio against the accumulation of risks, as well as protect individual policies with higher sums insured.

QBE Re, RGA, Partner Re and Arch Re are the partners providing reinsurance cover to PZU Życie. Reinsurance partners have high S&P ratings, which gives PZU Życie the certainty of reinsurer’s good financial standing.

Reinsurance contracts of foreign companies of PZU Group and Link4

Other insurance companies of PZU Group, i.e. PZU Ukraine, Lietuvos Draudimas, the Estonian branch of Lietuvos Draudimas, AAS Balta and Link4, have reinsurance cover that matches their business profile. Every significant insurance portfolio is secured by a treaty contract. PZU, the main reinsurer of the subsidiaries, coordinates the protection of the Group’s companies.

Reinsurance share from PZU obligatory contracts as per Standard & Poor’s rating