It reported profit of 5.77 billion zlotys ($1.46 billion) for the year ended Dec. 31, 2023, beating an analysts' forecast of 4.67 billion zlotys in a company-compiled consensus.
The beat means the company may increase its dividend payout, currently estimated at around 3.30 zlotys, for last year, analysts say.
"The maximal DPS (dividend-per-share) may reach 5.60 zlotys... which covers the entirety of standalone annual net profit for 2023 and undivided profits from 2022," said Lukasz Janczak, analyst from Erste Group.
He added that he expects the insurer to keep about 20% of full-year profits, which would result in a dividend of 4.68 zlotys per share and a dividend yield of 9.9%.
The company has all the grounds necessary to continue paying a dividend, according to its policy, said PZU acting CEO Anita Elzanowska.
"The (standalone) profit of PZU, which is key in determining the upper border for payout, has grown from 1.6 billion zlotys in 2022 to almost 4 billion zlotys," she added.
The insurer said in late November that its strong capital situation would permit it to continue its dividend policy, which allocates 50% of consolidated yearly profits as a minimal payout.
The company has yet to recommend a dividend per share from 2023 profits.
PZU, which holds stakes in Polish banks Pekao and Alior, benefited from a rapid profitability growth in banking activity that contributed almost 2 billion zlotys to the result.
Annual gross insurance revenue grew 8.6% to 28.87 billion zlotys, while its adjusted return-on-equity ratio increased 5.7 percentage points to 22%.
Revenues were boosted by a yearly 9% rise in general property insurance and a near 19% jump in corporate asset insurance earnings.
PZU also reported improved insurance sales in its Baltic countries segment.
($1 = 3.9450 zlotys)
(Reporting by Mateusz Rabiega; Editing by Tom Hogue, Varun H K and Jan Harvey)
By Mateusz Rabiega
