Powszechny Zaklad Ubezpieczen SA (PZU) Earnings Call Transcript & Summary

[Interpreted] Good morning, ladies and gentlemen. Welcome to the presentation of PZU Group Strategy for 2025-2027. This is our great day on which we can present the effects of many months of hard work of managers and employees of PZU Group. I would like to thank you for your attendance. I would like to welcome representatives of the media and capital markets. I would like to welcome all the guests, all those joining us here in the conference room as well as all those joining us online. After the presentation, our strategy, you are welcome to ask any questions you might have. In the beginning, we would like to introduce to the context in which the strategy of our group has been developed by the Management Board today. Then we will introduce the main assumptions and pillars of our strategy. We will be looking at banking assets of PZU Group afterwards and conclude by presenting to the financial called ESG aspect. After the presentation, as I mentioned before, there will be a Q&A session. But now without further ado, I would like to invite you -- I would like to invite Mr. Artur Olech, CEO of PZU SA; Jaroslaw Mastalerz, CEO of PZU SA; and Tomasz Kulik, CFO of both PZU SA and PZU Zycie SA to introduce our strategy.

Good morning, ladies and gentlemen. First of all, I would like to say welcome, and thank you for coming so numerously to our event. Indeed, in the beginning, we would like to give you some context of our strategy. They will be talking about our business goals, but also about our environment, about our work. On this strategy, we will be talking about reliability as well as emotions. I think we have already had the opportunity to feel these emotions at least to some extent, I hope there will be more, and I also hope that it will be an interesting time for you. Let me begin by saying that we are operating in very challenging times. These times bring a lot of risks and threats in all business analysis, we read about risks and opportunities like, because it is true that there is an opportunity tied to every risk. And I'm sure you know that external shocks open up new possibilities. And this was true for us as well. This was also true for the context of financial and -- finance and insurance companies. Most companies, in fact, have been operating in similar conditions. What was essential for us, however, this is what I would like to tell you in my introduction. Of course, we've seen conflict throughout the world, which is a problem on the one hand. On the other hand, it increases the scale of different programs connected to defense, funds spent on defense can also be used to further develop our economies, especially when we think of dual-use technologies. And of course, naturally, this sector are stimulates innovation and it is linked to some risks of the company. So we've seen changes in the global context. We've seen problems of supply chain. Some have been interrupted. We've seen many changes. On the other hand, countries such as Poland can be winners such processes, global companies can struggle. On the other hand, when we think of near-shoring, especially in Poland, it's a great opportunity for countries such as ours. And the Poland is our main market. This is our strength. The second issue migration, a risk and opportunity at the same time. It's an opportunity to recruit talents. For example, climate-related issues on the one hand, huge risks. And the challenges on the other hand, a chance to build awareness to convince the public that it's important to get an insurance. In this context, PZU is a company that has certain aspirations has a history, but also has a future. You will hear the word "leader" many times today. We would like to explain how PZU understand the role of a leader. The leader is not the person who's the strongest. The leader is someone who sets standard, others are prepared and willing to follow. So when we use the word leader to describe our group, please don't understand it as us being arrogant. It's just the role that we see for us in the market. You know about the figures, most of you, I'm sure you are familiar with these figures. Let me, just to repeat, 22 million customers in Poland. So I think each and everyone here in this room has either been the customer of PZU in the past, or will be in the future or is now you've made some experiences, some better, some worse hopefully, more good experiences. Of course, our capital position is important because it makes us trustworthy. It's also important to note that we are well diversified as a company, of course, we are mostly represented and strong in our region and the economies of our region still have development. But we are represented in multiple sales channels. We are quite strong in traditional channels as well as those that are emerging. Now I'm thinking that the channel is not the right word to use. So we are in all those places where customers meet digital places, spaces, and we have a lot of digital interactions with customers, which is a good foundation for further work. So strategy. A strategy is a document piece of paper really. But on the other hand, it is a pledge, it is a commitment. You can also understand it in a narrow side. But first and foremost, the strategy is a declaration you commit to do something in the future. Of course, but in order to speak about the present and the future, you cannot forget the past. And of course, when we adopt a strategy, then when the strategy period is over, we are held accountable for the completion of the strategies. We are held accountable for the past as well. And at this point, I would like to thank our employees for the last 3 years. You were the ones who have filled the last strategy with content. We have completed it. All the goals have been delivered. Some of them are delivered already. Others will be -- will have been delivered by the end of the year. We can't give you the figures yet. We know, we will have achieved through the goals. It's essential to emphasize though that our organization, not only talks the talk but also walks the walk. I think, it's essential to emphasize it. So referring to our last 3-year strategy. Of course, it has a long -- it's a long story. And my board -- myself, I'm in my present -- I've been in my present capacity for the last several years and also a big part of the Board. Of course, we have to build on what had been worked out by the predecessors. But it's also our strategy, we focus on business goals, the emotional part of the strategy was written by life itself. Let me just give you an example of the flood. The flood was the moment of truth of our organization, especially in the context when the flood happened. And it was the moment which really showed how important it is to be reliable. As we trust was -- you will remember in late August, early September, we're talking about hydrological drought, some were saying you could actually walk through the Vistula river in the middle of Warsaw. So a few days later, we started hearing about very high risk of flooding. And it was a true cognitive dissonance early in September. It's turned out to be true, and the news were really dramatic. Before the main part and the peak of the flood came, we are preparing for billions in losses. And of course, we had good procedures to rely on. We had good procedures for war ready, for war situation. We did not have a procedure for catastrophic events such as the flood. But our existing procedures were good enough to be -- as we could adjust them very easily. So we prepared in advance. We started texting our customers from regions that were at risk. And we told them what they should do, if got forbid, something should happen. We established crisis teams, and we made some non-standard decisions. The claims handling process to move away from a traditional model. A traditional model, you had to send experts, et cetera. But we decided to do it differently. 1,000 people were either dispatched due to the crisis regions or worked at hotline. So we decided in order to apply the traditional model, we want to be prepared, and we want to be faster. And it was quite fortunate that not only our company made such a decision, but also others on the market. So we decided to be strongly represented in those areas that were flooded so that we pay advance payments to our customers. Of course, as I said, you are familiar with the figures. More than -- almost 50,000 claims were submitted to the flood. In a couple of months, we very quickly paid insurance to more than 90%. And paradoxically, the effect was much better than what we had expected. And the reason was different, of course, it was a horrible tragedy, PLN 500 million in claims and damages that we paid. We were also able to prevent some losses, because in many cases, people used funds from us in order to better prepare for the catastrophe. So some of the money was spent to prevent even higher losses, we support the municipalities and the fire services and after this crisis, look, our brand awareness increased. So typically in such a situation, we would expect problems and difficulties with brand communication, et cetera. And the amount, the total sum of claims, well, the problems -- normally, you would expect a level of 5%, 6%. In our case, it was 1%. So what I'm trying to say, of course, we have certain procedures. There are certain frameworks that exist. But in the end, it is up to people to act properly and make the right decisions. So when we are going to talk about our decisions for the future, we know, and we are optimistic because we know our people. We know our track record, and we can rely on those people. And during the flood, we've seen how the emotions played very well. The emotional component, very important. We've learned and now we know that we can respond to challenges, and we are certain and challenges will emerge in the future, but we know that we can respond and adjust. As for global opportunities or risks, but our focus on opportunities, some of them are connected directly with Poland. The awareness of the risk is growing in general. Also, Poland is a place on the highest economic growth through our work, through the strength of our economy and our society, we can prepare for these risks may be better than others and use the risks or turn them into opportunities. We know that we can expect in Poland high level of expenditure for energy transition, the funds from the recovery and resilience program, will be spent on another area to a certain extent. In many areas of our activities, insurance, but of capital markets as well as awareness raising part of our work. We have set up goals. We have a six -- despite our high economic growth on slightly more than 2% of the GDP in Poland is spent on insurance, which is not much. So we still have a lot of work to do in order to convince our customers that insurance is important. And in the past, we used to believe that Polish people grow smart after they have suffered a serious loss. Maybe we can reverse it so that we are smart before something catastrophic happens so that we are prepared, so that we save for a potentially difficult future. And later, I will explain which areas we would like to develop more. You know of the macroeconomic context. I'm not going to go into details, because these are universally known figures. What my message is, however, based on this slide that we have a very good starting point. The last 30 years, the Polish history were the best years, I believe, in 1,000 years of the Polish history, we have a well-educated society. We have -- of course, our society is more or less happy. Of course, we struggle. We have disputes, but I think we all feel that it is not as bad. It's quite okay. So there is a good energy in our country. Maybe we can still guide better so that it stays on track. But I think the coming few years will be quite good to that. Interest rates will be dropping. The GDP will be growing. It will be a good time for Poland. So it's quite rare that we see in the situation, decreasing interest rates and the growing GDP and spending, I mean, most of Europe has already spent the funds they had under the recovery and resilience scheme. We haven't done it yet. So we didn't have this money. And yet we are where we are, even though we weren't able to yet spend the money under the recovery and resilience scheme. So we want to go confidently into the future. "Confidence meets the future," our slogan, but also an expression, the conviction that we want to lead our stakeholders and customers towards the future with a feeling of confidence, we are curious about the future, and we see the future as an opportunity rather than a risk, of course, being aware of all the risks that, that are. Of course, we do have the necessary degree of humility. We are not being arrogant. I do hope I've been able to communicate it. And the future also, this company will be the company of the future by which I'm trying to say that we want to set that and standards, we want to take responsibility for what we do. But not only that, organizations such as PZU exist on many markets and certain benchmark for the competitors, for different stakeholders and they make sure that they maintain a certain well-being of the market, if you will. That's an important part of what we do. And now -- so now some facts and figures you have already had this opportunity to see them in our presentation that was presented and published at our website. I don't know what you think, but I think that the first reactions are quite promising. I can promise that we will do everything to -- not to disappoint you. So the strategy is based on four pillars. Simplicity, focus, development and engagement. When we talk about simplicity, making things easier, we start from key things. Key things from the perspective of better efficiency and better arrangement of the assets of the group, I mean, all kinds of assets that we think that should operate better in a different operating model. We can see sources of synergies, maybe more synergies than savings, because we estimate that it's going to be PLN 400 million in 2027. But we're starting from ourselves. So we want to redefine our operating model as we work from the functional model to business unit model over around eight areas. We -- so we organize our activity. And at the same time, we maintain synergies with regard to shared services and elements that work, functions that serve entire organization. Administration and services and some obvious things like, for example, the human resources management and, for example, development of an ecosystem and other corporate services, but the core of activity is here. So the second aspect is that according to our declaration, we want to generate more business, more new customers and more business so we want to encourage our existing customers to buy more and more products. There are some areas of insurance, which are quite challenging for us. And we built our strong positions there. This PLN 7.5 billion, it's an ambitious goal, but we think that it's absolutely achievable, and we'll do everything in order to achieve it. We are concentrated on our core business. That's why we have combined a ratio index that needs to be over 90% permanently, and we will strive to reach this level. And with regard to the banking sector, we want to develop our position in bancassurance, domain ecosystems and the banks in which we're present already, but much broader as we started already now. Development means new areas, areas where we are small or we are not present yet. And my colleagues will tell about it. We want to invest PLN 1 billion in health in the perspective of 3 years, we want to intensify contact with our clients. Now we have about 4 million clients. We want in our ecosystem to have 8 million clients. Every chance, every meeting is an opportunity for rendering some service and building some kind of credibility or winning loyalty among our customers. And when it comes to new products, we want to double our premium, now it's about -- over PLN 150 million, and we want to double this amount. When it comes to engagement, it is our declaration with regard to our broad responsibility and green transition, but we treated as a business program. We don't do it because we think it's decent to do so, but we know that the more transition, the better economy and the better economy, the better functioning we can get. And we want to be transparent and socially responsible. It's not only about strengthening our brands, because we will talk about multi-brand today, but this is a matter of a good association that PZU brand has. Every strategy has its own goals that we are striving for. And these goals are, I would tell that, it's not by mistake they form such five rings like Olympic signs, because this is going -- what we are going to do over the next years, as we -- I think that the Olympics happen every 4 years, but we have shorter periods of time, so we will cope with that. So first, we aspire to achieve at over PLN 6.2 billion of our net profit. This is the yield from our core business that will go up by 2 percentage points to 19% -- over 19%. For our shareholders, we want to increase the level of profit, plus 40% per share. And one way to achieve that is to be focused and concentrated and to deliver our core business that is insurance and non-life insurance and combined ratio and operating margin in life insurance over 20%. But these are our goals. In order to achieve them, we need to arrive at some values. So as the customers who are with us and who will join us achieve. I don't want to tell -- it's achievable, but the point is how to get there. And it's about being a company of First Choice, we want in all metrics that we take into account in NPS and other, we want to be the best on the market in products and in services. We have already achieved great things. We did a lot of good things over last years and especially last month, and we are on a very good path. Clients in ecosystems, we want to show how convenient it is to use our products, and we want to encourage our customers to use them. This is investment in products and services for health insurance, mental health care and physical well-being. So we will concentrate on children, but also adults and we can see a niche there to become -- to offer inclusive sponsors product, I think that we -- sponsorship products, we will be very transparent in explaining how we allocate some funds on sponsoring and education and prevention programs because we target many people representing different ideas. They are supporters of different football clubs. So that's very important to be inclusive and to do things that can be shared by many. And we -- the most important part is that we are part of the market. We will not do a lot of things without the market and the market will not do a lot of things without us. So we need to be open and that will translate into some specific things that I'm going to tackle afterwards. Operating efficiency, that affects all these business areas, they are very different in terms of their scale. We have some large areas like non-life insurance, individual and mass and so these are dozens of billion insurance or corporate insurance also worth billions and group insurance also were billions, but we have business units, who are quite small, versus the scale of our operations, but I think that the outlook in these sectors are very positive. So they need to become a part of what we do and our strategic partnership and that we want to offer our embedded insurance in many different products. This is a part of our international business, and we have idea how to do it. We want to focus on that now. So PZU International that is going to be an area in which we will be very active, but in a very good model to arrange the structure of assets, we're starting with the most difficult ones for many reasons. So we decided -- and today, we signed a letter of intent with Pekao SA on mutual intent to make our business -- our banking business be supported by a larger bank, namely Pekao SA, and I will discuss it later. But that's also about our other strategic assets. So we have our Link4 strategic brand. And this strategy will be discounted for those of you who don't know Link4 is the second. I will not tell you who is the first one, but the second most renowned brand in the world in Poland, it is Link4. It requires a totally different operational model and focus on the quality of the business. The existing management and the executive team is working harder than that, but we -- they will integrate further with us. We will decide about it till the end of Q1 2025, but we will communicate this separate character. The entire model need to be -- needs to be integrated in the operation of the business. Now we have great experience multi-brand strategy, for sure, we will use experience, and we will choose the strategy, which will be the best for PZU. We are not the only multi-brand company on the market, so we can use experience of others. Business Center for health business and a place where entire and within PZU Healthcare, we will transfer all life functions to health company that will manage the process and the way of operation in insurance, also in the service area. The investment area, the investment products -- that's the topic that we're going to discuss. That will be a spin-off of our decision about the banks, because that requires some synergies to be added. The letter of intent that concerns thanks. But when it comes to the ways how we approach the sales channels and mutual multi-brand strategy and operating model, that is something we would like to work on. And depending on what we do with the banks, that will affect what will be the future in this particular area, but we will look for different positive solutions and to maintain flexibility and agility of individual teams and areas. So now let me go to the non-life segment, and I will ask my colleagues to present details.

Ladies and gentlemen, Artur mentioned one important foundation of the strategy, which is simplicity and efficiency, operational efficiency and cost efficiency. But another important thing is focus, as I understand focus. First and foremost, it's to be focused on this activity, which and which is -- and which will be and which has been the core business for PZU, namely insurance and everything which is related like asset management and health protection. As a leader of the market and both on the side of non-life insurance and life insurance, we feel responsible and this is something that was mentioned by Artur, great responsibility about a great growth of this market that in the way, generating value will be inclusive for all market participants. So it is going to generate value, not only for the insurance companies and intermediaries, but first and foremost, for clients. We want to achieve growth that will be -- and to make these growth closing the insurance gap, because we all know what is the insurance market from the point of view of coverage and events that took place on the market recently have made it evident and that showed the -- that led to the critical situation. So we will do everything to close the insurance gap. We want to develop solutions that will be able to eliminate or limit consequences of such great insurance events like these that we had to tackle as entire insurance market over the last few months. In order to be able to think about it, we need -- well, we need to be focused, because that's -- this strategy is about staying focused. So we need to be concentrated in even better risk assessment, risk assessment that will be based not only on global standards and the best practices, but that will be based on the tariff models that will use elements of behavioral and climate-related elements. So as where possible to limit and to prevent some incidents. And we want to do everything in all distribution channels to make our offer and the offer of our partners widely available and to make it -- to base it on many brands. And thanks to that, it will be possible to reach different customers groups and to generate value across all segments. We truly believe that this approach, namely to stay focused on technical excellence that should translate into a greater availability of insurance to our clients to think about growth that by 2027 from the perspective of revenues from insurance should exceed the value of 30%. And with a high level of profitability measured with combined ratio at the level of more than 90%. So that's -- we will see even greater growth even -- by now, they have reached almost 20%, and we want to be market participants participating in large investment projects, both using EU funds and transformation programs changing our energy mix or large infrastructural projects. We want to use our potential resulting from our size, the scale of balance, and we want to participate in them as a leading insurer. So as it is possible over next 3 years, like in case of mass insurance, we want to be focused on tech excellence in a way that will allow us to eliminate or think about results in a repetitive way, less dependent on underwriting cycles or insurance cycles that we need to deal with from time to time where the market is soft. Sometimes it's tough and sometimes we cannot do anything or we can do something better. We want to be become even more predictable, no matter what is the current situation in the market. We want to build a unique value proposition for our customers and clients. On the one hand, we want to continue solutions and projects that are delivered now like iFlota or RyzykoPRO, we want to offer new solutions. For example, State Process Safety Management. This is a preventive solution to chemical and petrochemical and energy market players that allow us in a systemic way to approach to identify, assess and mitigate and manage the risk characteristics of these sectors. And finally, we want to automate sales and service provision services in order to boost the agility and increase the level of simplicity. And now I would like to hand over to Jaroslaw to talk about life insurance. Thank you very much.

Ladies and gentlemen, if we attended a meeting of any life insurance company in the world, the strategic topic you'd see on this slide would be exactly the same. Everyone repeats just one word, demographics. And of course, it is not only an important issue for insurance company. It's a challenge for many different sectors in Western economies. We have to get used to the fact that we live longer and longer. And that fewer and fewer people are born. So we need to focus on a competitive advantage that PZU has had for many years, and it has contributed to great results and ability to pay out high dividends. These are great services to the -- to the so-called silver generation. So people who have decided to stay with us after the group insurance company insurance was over, we call them the group of individually, in short, customers, parents, grandparents, if you are young, your grandparents may belong to this group of our company. But now we see that the silver generation is growing new and new people join this group. If you have looked around this room, you will see quite a lot of silver hands. So hello, welcome to -- and they joined this group, they joined PZU, and say, yes, hello, PZU surprise me. So we want to keep them happy in order to maintain the 20% operational margin in our life insurance company. It's a significant number because PZU number contributes to the entire dividend of the group in 50%, and this is due to the 20% figure that you can see. So we want to increase the value of new business even more. Not all of us -- not everyone is familiar with international accounting standards. So let me define our new businesses. This is our capacity to rebuild new portfolios. So whenever we pay something out, of course, we have to add something to the portfolio in order to rebuild it. And if we put more in, in the future, we will be able to ensure higher dividends to our shareholders. So we have to prepare, because new people joining the silver generation are slightly different than our current customers belonging to this group. So more customers in this group will not be similar to my mother, but to myself or even some of you. What is the common denominator? When we look at people age 45 to 55 today, of course, this is the generation that uses online banking a lot. We have a very well embedded service system that is based on our offices a different, not online banking on physical -- physical banks. So we have to develop new service models that are better suited to customers that use their computer or even smartphone up for banking services rather than just high-street banks. The current -- and in the past, people took out an insurance in order to prepare sickness or death. New members of the silver generations. They want to track that. They want to stay young. So there are certain differences basically also mentally this generation is more and more concerned about their psychological health, also the risk of Alzheimer's. Hence, our product range will have to be adjusted to their needs so that when they decide to spend the money with us, they can meet their goals so that we can track that together. So that they can live in a way that will keep them healthy for long that will kept them fit. So yes, okay. Another common denominator is the fact that the children have left the nest already children. Yes, how about grandchildren though? This group is very open to spending money to protect their health and security of their grandchildren. And this is the need, we will now address. Bancassurance has been mentioned already as well. You know that it has high and low points in its history. Today, it seems that we have a stable bancassurance model, which is split between three product categories investment, insurance, where we have a strong position that we would like to maintain. So we will follow the market protection insurance. So all type of insurance that is sold together with loans. Here, we also have a stable position, and we would like to maintain it, if not improve it, the core of the strategy, though, will other independent and a long insurance for many years, banks were not that interested in this sort of insurance. You write reports for your customers about the attractiveness of different banks about their performance. And in last few years, high interest rates have changed the focus of banks. They no longer focus so much on commissions. So investing in protection product though is about systematic work, building relationships with customers so that they want to go back and purchase insurance products here and not somewhere else, that's somewhere else. Luckily, PZU is well equipped to be strong in this category as a strong partner for banks, Polish banks, but maybe not only Polish banks, because we are a partner that allows banks to offer an attractive alternative to other insurance channels. So instead of going to a shopping mall and buying insurance somewhere on island in the middle of the mall, it will be easier and more comfortable and safer to do it at your bank. Of course, we are at the beginning of this journey, but if the rates reach the level, we expect them to reach, then banks, not only in Poland, but throughout Europe will go back to working very systematically on building their commissions business, commissions on products such as insurance are sold through them. The more ambitions plan part of our work, we will focus on stand-alone protection products, so that's for cars, apartments, insurance that is normally not bought at the bank, but through other distribution channels. And in this area, we want to increase the scale by 4x. And if we are successful, we will prove that we are an excellent partner for banks in this respect and maybe not in the next 3 years, but afterwards, we will be able to attract also foreign banks as our partners in this field. Bancassurance, and you all know that we could spend many hours talking about it. And health. We could talk about it for hours. We believe that right now, health is the most important development area for the PZU Group, at the same time being the most difficult one. We are talking about something that when we look at infrastructure and access to infrastructure, it is not easily scalable. And the split between what the state pays for us in terms of healthcare and what we pay privately, we have to state that this is a field that will undergo -- will have to undergo a revolution. We mentioned the recovery and resilience program of schemes. So to also address this area, we are encouraging of health to introduce solutions for children and use and further also for adults. So our next door neighbor, so to say, Germany has a medical data repository an institution-based in Ingolstadt. And around this repository, they built a system aimed at reducing the cost of healthcare by using algorithm that will not only help patients, but also German companies to attract customers from other countries. So what's coming is an AI-based revolution. And after this revolution, for example, through imaging diagnostics, we will be able to diagnose our health early on and detect potential problems early on. So what do we want to do in this broad ecosystem? I think, I have to refer to the past first. In the past, we have -- so for the years, we have built a wide portfolio of medical of product. And we are planning 60% for growth to reach a level of PLN 3 billion. You don't have to be a mathematician to see where we are right now, about PLN 2 billion. Recent investments, we've seen investments in infrastructure and PZU Zdrowie, yes, they do not follow this trend. So a lot of money, we are -- then now actually goes to subcontractors. So we lose a part of the margin that could be ours. Olech mentioned that PLN 1 billion will be spent on building or buying infrastructure in order to be able to serve customers directly rather than through subcontractors. Some of the specialist services that we have are not sold as insurance. So we go back to -- go back to the national healthcare system, making services available for the national system. But also offering services to customers who just come in and want to purchase services directly online or in an office, not as part of insurance schemes. So apart from these changes, we want to emphasize our role in healthcare, the President and CEO mentioned that PZU Zdrowie will be a profit center -- center of our competencies. Absolutely. So in healthcare, we will not only focus on claims handling under life insurance. So we will become a stronger partner and PZU Zycie will focus more on selling insurance customers. It's a very important strategic shift. In this way, we will compete more strongly against other entities on the healthcare market with PZU something more than a claims handler under PZU Zycie, PZU Zdrowie. For [ PLN 40 billion ] was made available under the release Recovery and Resilience scheme. And we want to really in the first line, the very front, when the common healthcare data space is created. So a space in which hopefully all of us, and if not our generation and young people, will have all their medical data, all their test results store so that a physician that go to has access to the previous data provided that they agree, absolutely. And of course, the state agrees. And with such a permission, the system will be able to use AI in order to strengthen prevention. So analyzing the example of our German neighbors, we find out that with the help of algorithm, a doctor can work at a higher pace, pace higher by 50% because simple task has taken over by AI. We are an asset manager. We want to be an even bigger one. It's like a leveling of what's going on in the asset management. It's about following the trend, which is a pan-European trend. So exposure to green transition increases this exposure and being open to tech and innovation, it is very difficult to build a good return on investment without these components, we are an asset management for our individual customers, and we want to reach our corporate clients as well with our asset management offer. Digitization. The Chairman said -- had mentioned mojePZU is a great product for many years. We managed to create a great app, which is a leader in this range of products, but it's time to take a great leap. Google Map 12 years ago, stop to be only available via app, but it became available everywhere where people are interested in Google Maps. And here, I would like to use this opportunity that works are underway for mojePZU not to be limited to mojePZU app, but to be present, thanks to the support from the Ministry of Digital Affairs and also our bancassurance team will consider embedding our service in our banking apps. So we will start our way from super service, which is available exclusively via our app and to spread and to distribute our services and to make them available everywhere when our customers want to use them. Yes, another thing. Ladies and gentlemen, if anyone asks me as person managing tech in PZU, what is the most important from the technological point of view. I would say that our ambition for 2025 to join an API revolution and to use it as a glue to add our products and to offer availability from apps available all around the world and not limited technology that we can generate within PZU. This is a slogan, which is repeated by many companies, and we don't know what it means. So I will not tell you about API Glue. I will tell you what API Glue can do in places that you can directly assign to our business result in the next coming years. So CRM of new generation. As soon as our services will be available by API and able to communicate with external services, we will be not limited to what we can generate within our CRM. It will be possible for us to reach every best CRM functioning across the world, thanks to low connection cost. It is not -- there is no problem for every function to use the best-in-class CRM they want to use. This is the API Glue strength that we don't need to reach this critical mass or to engage in sharing economy, but we can use and co-use functionalities that were developed for corporate companies and in some other places to retail companies and insurance companies at the same time. It's a great revolution and only a few companies in Europe has such opportunities. What do we get from API in terms of artificial intelligence? We don't need to develop. We don't need to embed artificial intelligence internally to our systems, our systems will use any kind of artificial intelligence, which will broadly available across the globe, provided that it is safe and it is subject to regulatory provisions in terms of data processing. Our systems will be equipped with API able to collaborate with external services, and we will invite all wonderful people developing their products who are able to do great things to our clients and customers. We invite them to join us, because we are able to integrate with them and connect. And for our clients, their solutions and our solutions will make one great PZU solution. So that's how we intend to strengthen what we do within IT. These are great things, but we want to strengthen with what is going on in these young and revolutionary companies. Why startups develop slower in Poland than in other countries? Because in Poland, large companies want to do everything on their own. And even if they just stop doing everything on their own, they are close to communication with the rest of the world. PZU is open to communicate. We will be able to give to these young Polish companies opportunity to grow and to develop and to expand across the world. Thank you very much and now the time has come to invite the CEO on the stage.

And with the great interest I've been listening to this presentation. And I would like to thank Tomasz, who presented a very complex topic with the pricing and with all details, and he managed to present it in a very transparent and systematic and interesting way. But -- he -- I was surprised by Jaroslaw, because with a great passion, he was talking about some final things. So the -- this -- I need to stand up to this challenge. We are in the business in which we need to do with some unpleasant things like death, flood, accidents. And to be honest, I was thinking about sharing something with you. During the flood, it wasn't -- I had an opportunity to see not so much frustrated clients, but clients in the moment of damage. They are not frustrated. They are not angry. They are lost. They are confused. They need some reaction. I think that you know it. If something bad happens, you are not angry with your insurance. You just need support. And I think that, that is something that should change the paradigm of what we're doing. We cannot exclude that emotions, because only thanks to them that as we know them, we can translate them into positive things. And talking about two important things, for example, some accidents against mishaps. Sometimes you will not win, but you can -- it can be a draw at the end. So we can offer such a service to our clients and customers to make it possible for them to function at a decent level with some level of quality, thanks to the insurance. And let me delve into a few topics which are ahead of us, which are new one, such thing, it was a delegated business unit regarding strategic partnerships. We want to increase the number. We have reached a great position. We collaborate with many energy and telecommunication companies and not only, but it's not enough yet to become #1 not only the insurer of the First Choice. We have technological -- our technology with us, we have all kind of support, but let me put it like this, large e-commerce companies around the world, 20%, 30% of the revenues are realized from financial services, the largest in Poland, they generate only a few percent. We can see a large potential in terms of opportunities we have. We want to be active in this topic. And hopefully soon, we will be able to share some spectacular results soon. International expansion, it's something that we need to take seriously. Business unit with its operating model versus profit. Here, we can see a few areas in which PZU would like to grow. And here, we stress this international overseas expansion cannot be an antidote to problems on your own market. If you're strong in your own markets on the domestic market, you can expand. So in order to get to know the market, you can do it in a more effective way, not only through acquisitions abroad. That's why we want to invest in know-how and in people also out of Poland, together with the Management Board, we're working hard on that to attract people to PZU to help us to deploy some light models based on freedom of service and on the front European markets to show a strong site, the number of transactions underwriting, pricing and simplicity, because the Polish purchase processes is the simplest in Europe. So you don't need to set up a brewery to have a kind of beer. Of course, alcohol free, so it's worth offering something to clients, to customers out of Poland in areas in which we feel strong and the Polish market is quite strong in many areas. The second topic that is an idea to expand this is the reassurance. We have a great rating and balance here. We could be more active in reassurance projects, regional projects and even global projects, because PZU has know-how to do it, but they need to act boldly as a profit center. And we would like to see PLN 500 million of premium from reassurance over the next few years. Green transition. That was something that was already mentioned, it's not anything new, but what is offered by PZU, it's an element of advantage of a competitive edge over other entities that could be active on this market, because we can be active in insurance, but also in the capital investment and within different models. And here also through some selected vehicles and companies such as TUV. Here, we would like to exist and ensure some specialized technical risks. That's a matter of our capital investments of different kinds, bonds, projects or companies and of government financing where we understand and see the final balance of our clients. We will deliver capital to the banking sector. And that regards our idea, what we're about to do with funds generated from the sales of Alior or Pekao SA. So I'm convinced that we will be the sector financing the Polish energy transition. So we devoted a separate chapter to collaboration, to development of solutions delivered to clients. It's a strategic solution for companies like PZU, it's participating in all kinds of events and initiatives that are related to some shared platforms. On the right-hand side, these are our allies of the market. So we want to develop some tools that -- and one such initiative is to be vital, and accidents and crush and it's worth developing this solution when it comes to reporting claims. We have some lessons learned from history. We know why we failed in some areas, because this shared platform for customers for some smaller accidents to report them via solutions and via integrated tools via API to build awareness that can be monetized by the insurance companies, because -- so around this ecosystem, we want to develop some additional tools. There are different insurance services that can support us in this ecosystem, and it does not require any new door to be open. And thanks to the fact that customers will be there, they will we rerouted to our ecosystems more frequently, because customer opts for multi-access and the more digital the services, the easier it is to encourage our customers the -- and all that will lead to a higher quality because the improvement of quality is related to the security of data exchange. I don't know if you know, but PZU for many years has been very closed and has -- and was not willing to share information about claims and damages. And it's very -- one of the first decisions we've taken is that we have only -- we have 30%, 40% of the market. So exchange of data, fine tunes, our navigation and the market information available. So do not open door that will allow us to limit some market diseases and pathologies and whether the market the higher our revenue and digitization and keeping open data is in line with what the banking sector did, so we need to do exactly the same for this market to sanction. We are open and we support different tools, making this market more efficient.

Trust is our strategy. Of course, we have some socially engaged programs as well. I mentioned it before, of course, we are active in marketing, but also sponsoring in the prevention, we have the PZU Foundation. Thanks to the efforts of PZU employees, which know a lot about prevention, about sponsoring, about how foundations are supposed to operate, because they've gathered know-how and expertise in Poland. Internationally, we can work in an inclusive fashion. Of course, we don't want to do it alone. We want to work with the best possible partners, we wanted to do it democratically. I'm not sure you know, I'm a football fan, especially of several teams, but we have funds of different Polish teams from different cities. And in the end, it is not essential which club or which team we decide to support. Actually, we will not be supporting individual teams, but large-scale projects, for example, football fields for young people throughout the country. To just set a direction for PZU and that is true for other areas as well. Finally, we were able to invite important personalities, people of high level, sorry, to join the Council foundation. I'm very happy about that, that I'm sure that our strategy, our social responsibility strategy will now be more consistent and also we will spend funds for the right purpose is in a consistent way. Well, to continue. Team PZU, in this area, I have to say that our organization has been quite strong already. The perception that people have for the PZU, the perceptions of the quality of our work, both have been quite positive. So this is a success, but it is one that we want to share with our employees. Obviously, there are some fields where we still have to invest. But we are very happy to see a lot of comebacks, people coming back to PZU. And our new operational model is to serve this purpose, among other things. From the perspective of the Management Board, and we want to bring about a shift from a strictly hierarchical structure to a drive based structure in it. People understand more what's going on and have more impact on decision-making, the decisions that so far have been made in a hierarchal structure will be made closer to the employees. And this is one of the purposes to be served by the new structure, new organization. Now a few words about the bank assets, a very important part of our operations as well. Banking assets are not a burden. Banking assets pose certain challenges. The operational model we found when we took over was not an optimum one. And before we found the best way of addressing it, several attempts have been made to address it. They have not been that successful for many different reasons. We analyze it from the business perspective and an economic perspective, but also in dialogue with our shareholders we have a different shareholders, those that are with us for a long haul, those who apply a shorter horizon. We talk to all these groups. And finally, we found a solution that is well adjusted to the context. Banking, of course, is a business. And in the last few months, we've seen a lot of consolidation in the Polish market and the European market. And the development in the banking sector in Poland has been mostly happening through acquisitions, which is also an important factor. What we know as well is one is we want to reduce the level of complexity in our group. At the same time, we want to keep our controlling position. We want to control banks. So we did in the past, but use a different operational model to do so. Also important to note are the banks in which we have a considerable share, which we control to a certain extent. If we looked at all of them together, we would see that we are a very strong #2 on the Polish market. However, right now, I don't want to say, we don't know what the final position will be when we have completed all the changes. We've analyzed the market environment for several months. We analyzed potential synergies in different strategic solutions, of course, while bearing in mind what the context has been in the last few months in Poland and Europe wide in the banking sector. So we wanted to understand all important components. And today, this morning, we finally signed a letter of intent. Intent is to sell our shares in Alior Bank to Pekao SA. This process will be completed when we have signed or relevant agreements. Of course, we need a number of permissions within the corporate structure and then the process will continue until midyear next year. But we want to leave some space to the management of both banks, because for both, it will be a time of considerable challenges. We want to give them space to focus on the core business and on generating value for the shareholders, including us, but also other shareholders, several banks have several. We want this transaction to be cash based. We don't want to include -- increase our share in the consolidated model. So different variants are still considered. We haven't decided on the final one yet. We see a lot of synergies, a lot of complementarity between both institutions. But this process has been very well thought through from the very beginning. What we wanted to see were really outstanding experts in both management, people who have complementary knowledge, but are open to different scenarios so that in the end, the final -- the final scenario this adopted is very well considered and the optimum solution for both banks. And that's essential. This solution will lead to a structure that will be much more transparent. And the solution in which the insurance company, I mean, a solution in which an insurance company controls to banks is not perfect. It's unusual, potentially not optimal. So now we have to find the right synergies and the management of both banks will work on it in this year's perspective. And then a choice will be made if we go in direction A, B or C. There are probably even more options considered, right? Now colloquially speaking, when we talked to our stakeholders, everyone was saying, either sell the bank or consolidate it. We did both, to a large extent. Because we want to sell Alior, so that it goes to -- the shares go to Pekao SA. So it will be a consolidation also. But looking at the timing, and we are working with bankers with an outstanding track record, both in Pekao SA, Mr. Cezary Stypulkowski is the CEO. I don't have to introduce Piotr Zabski, the CEO of Alior, a person with a great track record in the consumer finance and retail banking. So with these talents, I'm sure that in the end, we will be able to find the optimum solution for all stakeholders while at the same time pursuing our strategic goals, one of those being reducing the level of complexity and PZU focusing on strategic components such as insurance, different types of insurance. And in this way, we will release more capital that will be invested in core activities. The main directions of investments. So first development of our core business, strategic partnerships in Poland and abroad different models, because some projects will be connected to distribution. This is something we have on the radar, but also bancassurance and embedded insurance are important strategic areas. We know that we can generate more value than so far in those two. Healthcare segment development, as mentioned many times already. And first and foremost, the third element, participation in financing a transformation of the Polish economy using different vehicles both those that are traditionally ours, all by issuing bonds and subordinated to banks, so that because they have a high level of competence with the banks in order to manage this business, which is much more dispersed, it would be difficult to control for us alone. I do hope that you can follow despite the fact that I'm quoting passionate when I talk about it. But now I would like to hand over to Tomasz, who is going to talk about our financial ambitions.

Ladies and gentlemen, at this point, we would like to sum up what we have been talking about so far and not only do we want to sum up the presentation, but we also want to commit to certain goals and pursuits that we will implement. I would also like to refer to what the CEO was saying when he gave you the best evidence that PZU can deliver. So we are talking about focus, about changing the model, about simplification. Focus will be the absolute priority in the upcoming 3 years. As market leader, and again, as the CEO said, leader is not necessarily the biggest company. This is the company who said -- which set the standard others are proposed to follow. So we want to build value, generate value for us and for others. By doing so, we want to increase revenue from insurance by another PLN 7.5 billion compared to today's level. I know it's a huge commitment. The bar is hanging very high. But with the people we have today in the PZU Group, with the solutions that we have with our state-of-the-art solutions, and with our strong business relations, we are able to fulfill this goal. And we can do so in a profitable way. Therefore, as regards to our core activities, we are convinced that we can increase the profit on our shares by another 40% compared to the present day level, which will translate to an increase of profitability on our equity and core by another 2 percentage points. Somebody could say, "just 2 percentage points," but we are starting from a very high level already. And we want to increase it even more. So the goal will be 19% with very high cost efficiency based on much better organized assets within the group and a much lighter model. So cost efficiency and capital efficiency will help us achieve this goal. So now from the point of view of some tangible value for our stakeholders. What can it bring? Of course, this strategy is mostly about value. We've been telling you many things about our insurance business, healthcare, asset management. So through all those and through our plans, we will be able to generate a net profit that we will exceed the level of PLN 6.2 billion. Not only will we generate a high level of performance, but it will be translated in a very interesting dividend flows. And our dividend policy, capital policy will further support it. Today, we published our updated version of the document that explains our intentions regarding the flow of capital within PZU Group. Thanks to our high ambitions. Thanks to the great ideas we have. And we are confident that we can fulfill these promises. We are convinced that we can generate high value for our stakeholders in 2027, the dividend per share will be delivered at the level that exceeds PLN 4.5 per share -- PLN 4.5 per share. I know, it is very ambitious, more ambitious than our plan for the previous strategic period. PZU and its new strategy is not only about ambitious financial goals. They are super important, but we realize as well that we are facing a lot of challenges in the environment, in the society that there are also some challenges in the corporate governance that we have been facing. Therefore, we want to change as an organization. We want to change the capital intensity of our operational model, but also our energy intensity or energy consumption, we want to transform our products so that they are in 100% ESG compliant. Through a set of incentives, we want to influence business models of our partners, so that we can act in a way that will be beneficial to the environment together. We want to develop our social impact, our social competencies. We want to create a transparent and clear model of corporate governance. And thanks to all this, we believe that the PZU Group will become an even more trusted partner of First Choice for our stakeholders, both in the business world, among our customers and all others, because we want to create value together. Now I would like to hand over to Artur for his final summary.

Ladies and gentlemen, the future for us is a great challenge. But also a positive aspiration, and we're happy about standing up on the path. So this presentation was about the direction we're going to take. I think that each and every one of you will find something for yourself. When it comes to the takeaway message, the official communication with regard to what our strategy is all about, it touches upon many things. But first, we want to concentrate on our core business and profitability of this business, we have our idea how to do it. We have our resources. We have competence. We are willing to do so and we know what to do. And of course, we will encounter many challenges, but for the last period. And recently, we managed to prove that we are able to adapt flexibly to conditions, because it is not the strongest player who wins the fight, but somebody who knows how to adapt. To simplify the structure and consolidation, is it another a foundation? It's yet another important decision that was taken. We started from the toughest part, from the easiest part, from the internal organization, and it was not so easy to discuss it. It was a difficult process and -- but in a great mood and atmosphere, because the change of structure can start many doubts and questions. But we wanted to show and we showed in our work on strategy to our colleagues, how our business units work, the crisis committee that took decisions, that had to take decisions in no time, because we were all sitting at the same table. This is how we want to work as a company. Such a large company like PZU. So in this crisis mode, in a normal mode, they will work on their -- on their problem. So the improving efficiency will be a spin-off of that. We have an ambitious goal, synergies from the perspective of 3 years. And what is the most important is the value for the customer. And we are a dividend company. So at the end of the day, we want to boost the level of profit per share and to pay at least PLN 4.5 per share and to become independent through all actions from the interest rate effect, which supported our activity by now, but it is not given for, for always. So we need to be determined to react. In order to do so we can do it with the strong and prepared and informed and passionate team. So people who have track record in many areas, it's a team, we were not able to show everyone, but this is the place to thank to all these people. And apart from a tough insurance knowledge, let me start from my colleagues who are sitting next to me on the stage, who are experienced in the banking sector, Tomasz, who knows the company and who could present some elements that should be pointed out in the process apart from his expertise. My dear female colleagues, Ela with great insurance background and elements of telecom; Ivona with the insurance and sales spirit; Slabik, who is bringing his experience from assistance and service global companies; and [indiscernible] who, apart from this knowledge, he was active on different side, distribution and the insurance and distribution. So the legend of PZU somebody who started and who gets through all the levels of this ladder of careers, so he's very experienced and he came back. Pao Vida and the [indiscernible] bancassurance. He wanted to add more years from the total number of his years in the insurance sector, but his colleagues stopped him. So I would like to thank all my female and male colleagues and all people who supported the strategic department and managed by Pawel, but also to all people who are with us, who collaborated and who co-created marketing and PR and dozens of people, who prepared this material. So thank you very much. Thank you for your effort. We are there for you when it comes to Q&A session, and we will trying to respond to that.

Thank you very much for this presentation. As the CEO said, please ask questions, let's start from the media.

What about this health business, are you going to acquire any hospitals because the infrastructure was mentioned? And the second about your own network. What are your plans? Because I could see such a bullet point in the strategy that there is a specific value assigned to your own network.

So [ Jarek ] will tackle the hospitals and Ivona about our network. So today, we have no specific targets. But to be honest we perceive them as interesting acquisition points. The second thing, ladies and gentlemen, we have great distribution networks. We have a great distribution networks of our branches, 400-plus network of agents. We want to develop their competence in order to strive for operational excellent sales and service excellence to our clients. We will invest in our collaborators and our employees. Let me tell you that we are heading towards multi-agency and multiproduct market. But based on what we have today, I think that we are able to use our strength. We have a few insurance brands, we were able to generate value and the networks that are a significant power they will develop and they will be still competing first with whom we will develop the business.

My question is about your predictions with regard to the pace of development of the insurance market in Poland in total. The insurance market in Poland as such, is it going to grow faster or slower than PZU? And the second thing is with regard to this agreement between -- about the sales of Alior, what is the evaluation of shares in the books of PZU and the profit will be an extraordinary profit that is going to be distributed or maybe that will be capital excess. And from the other hand, is it possible that, for example, the dividend of Pekao SA will be limited because for them, it's some effort.

Okay. Let me tackle the first and the third question and the second about the profit distribution and the valuation will be left to Tomasz. I don't know about the market in total, but I think, I will reverse the answer. For figures, the level of the Polish market from 2.2% it will be above 4.5% GDP. That is related to the value, I think that if we use this opportunity in a good way together with the macroeconomical trends, I don't know the theory, but I think that you can calculate it easily. So I think that the market has already reached the level of 4%. And I think it's a good moment to show what are these areas. The areas I can see, these are different kinds of products. I would tell that people will be more willing to spend money on insurance in the health, on these health products, I think in the all context-based products, we will increase the scale of insurance. We have the insurance gap in the non-life segment. And I think that in the face of the tragedy of flood, this level of 200,000 has passed. I think that the insurance against natural disasters will be a driver, and they will translate into higher propensity of the market to ensure. And the last thing, we are service companies, good ecosystems in terms of claim adjustment, if based on this solution, which is being discussed, in the ecosystem or in mojePZU, everyone will choose what they want. So it will be possible to report a claim, the accident to provide data, you will get information about your insurance policy. So it will be possible to monetize that. We're talking about relatively small money, but people like to pay for their convenience, and they think that, that's an element affecting the market growth, but mainly -- these are things that I mentioned before, namely health and closing the bank gap and with I have high hopes about the initiatives, which come to PZU from different directions. I would like to move the capital and long-term deposit market, but there is a group of people working on that in order to reach the European market of 8% versus GDP. So that requires some external factors and without some changes in saving patterns among Polish people, it won't be possible. So this growth will be even higher. So we don't need to take any shortcut, you can do it with transparent and good solutions. So here, I'm convinced -- optimist to how the markets will increase. That is the first thing.

And now responding about the question -- to the question about valuation, we do not expect and we think that Pekao SA, we plan this transaction in such a way, so as the level of dividend distributed by Pekao SA would remain unchanged. We are a dividend company, and we expect from our main assets, the same. So the solution that we're going to adopt should not affect the propensity to pay out dividend of Pekao SA after deconsolidation with Alior, because we know that the management will choose the best path, but we are prepared for different scenarios related to the way how this transaction is going to be settled. And the last thing I'm going to tackle is that here, we can see a lot of opportunities and synergies, and I do not see any threat to the payout of dividend by Pekao SA.

I would like to add to this because in the strategy -- there are some elements that are connected to this question. There's sort of speculation about whether or not the transaction will affect the dividend policies of Pekao SA. And of course, the decision belongs to management of the bank, and they will give a binding answer. But as a shareholder of Pekao SA, we can give you twrite-off bits of information. So as to the question whether it's going to be a super dividend, what the performance is going to be, et cetera. So of course, as a company, we have developed certain competence, which allows us to understand banks, because we want to. So -- and based on this competence, we know that having two banks and being directly involved in equity of those two banks, it's not the perfect solution. But it does not mean that insurance companies do not enter into banking. They do mainly through bonds and the securitization and different instruments used by banks and insurance companies to cooperate with one another. So we want to be very clear that some of the money, not money from this transaction directly, but the capital released by this transaction. We wanted to go back to the Polish economy, but not directly that we will buy another bank and organize it in some way, no. But the way it is done in the West, it will go back to the economy through certain instruments that allow us and our stakeholders to obtain a good ROI with a lower degree of risk and for diversification than what we had before, a strong position in a single bank. So we want to maintain the same level of return on investment for our shareholders. So it's not that we don't have an idea of what to do with this money, and that's why we will distribute it immediately. No. I'm sure you observed the issue of ones by mBank, which ended up with an oversubscription because the demand was higher than the supply. And much like mBank debt, mBank has a number of scenarios that they can to apply in order to deal with it without affecting the level of dividends is a considerable degree. The same applies to us. Tomasz?

Yes, I just want to add the following. If -- this transaction should happen that on the PZU SA side, additional profit will be generated through this transaction. And if we were to apply the current valuation, the entity would end up with a value of more than PLN 1 billion in additional profits on the consolidated side. this transaction, if it should happen, would be neutral. It would not affect the result. Now answering to your question about what to do with this additional performance generated for this transaction, there will be -- it has to be reinvested in order to be able to continuously implement the goals. We promised that 2027 regular dividend should exceed or not be lower than PLN 4.5 per share. It is going to be difficult if such a major part of the capital, such a large amount were to lose our budget balance sheet. So balance sheet. So as for additional capital for shareholders, potentially, we will have this discussion when the time is right. And today, we think about how to use the capital we have optimally and invest it in the most additive undertakings in order to generate optimum growth.

How about some other questions? We have still some time. If there are no questions in the room, unless stock exchange analysts have questions. If not, then I will read some questions because we've received some from online participants. There are -- the majority of the questions is about the banks. The strategy says that the sales of Alior to Pekao SA will simplify the governance. But will the effect not be opposite initially? Will the degree of complication need be excessive in the first period?

I would like us to go back in time. Our situation is nonstandard. One company owns two competing banks -- owns two competing banks. So when the second bank was purchased, the big. If member of -- if Pekao SA, the big one was the part of our group, when we wanted to purchase Alior, we would have done it through Pekao SA. For example, when [ GSM ] Bank was taking over, it was taken over through Alior Bank and later talk to the shareholders about the conditions of merger. So normally, the bank operating on this market, acquires a smaller bank that the group wishes to purchase and negotiate with the stakeholders. So always, there is a transition period in which one bank owns another bank and controls it. When you look at the time line of different acquisitions in Poland always before a merger, individual banks first controlled by the bigger entity. When Nordea was taken over by Pekao BP, there is always a transition period in which the acquiring bank controls the acquired bank for a certain amount of time. Yes. And I'm not afraid of that. I believe this is the right step towards more transparency. So we have set deadlines. They are not far in the future. By mid-year, we want to have everything about this transaction clarified. That's at least the intention of both of all parties involved. We've prepared very well. It took several months of hard work of all of us. It involved a lot of legal analysis, but we have also relied on the expertise of reliable institutions that provide the valuations based on the 2024 performance, the individual quarters of the year. That's number one. Number two, we are convinced that's due to the fact that we have given ourselves enough time for communication by the end of the year, that we will be able to be very clear about the future. Of course, there are still different options and management will have to control it. Our share in general will not decrease, will not increase. In Pekao SA, we will keep the same amount of shares as before. And of course, it is in our interest that both banks do well, because we are a shareholder of both. We want both banks to develop well that they stay on the right track, and we are convinced that the management will ensure it. But we also know that we have to leave it to the bankers, to the experts to work out the best solutions for their banks. And I'm sure that they will do a better job than we would have as a mediator. Of course, they can count on our support. We see potential complementarities in the business in terms of management. We do note the differences. We see areas of competition. We understand them, but we also see, which direction both institutions have taken in the past. We've seen an appreciate great work of the employees and we believe that they will stay on track. And of course, we are open to and aware of the European context. So the way we see it, we are pursuing certain goals for the sake of stakeholders, which involve consolidation, better governance, et cetera, but we want to -- we don't want to spill baby out together with the bath water. Of course, it's not an easy merger. It's not like LEGO blocks. These are two living organisms. They have that new managers, new management, they have to learn, okay, Mr. Stypulkowski has been positioned for 2 months. And -- so of course, they need to come some time to learn about the organization. So we believe that our approach is consistent with the interest of the banks as well. It was very important for us not to reach for any quick wins or oversimplified discussion. It is now my belief that we have acted in a very responsible way. In a way that on top of everything else builds value for everyone involved. So as a shareholder, we always the right to state our position if Pekao SA are considered growing through M&A, but don't quote me. It's not that I'm talking -- trying to give statements on behalf of Pekao SA. No. I believe that out of all banks in Poland, Pekao SA can generate synergies as high as the biggest banks in Poland in this fashion, because we see complementarity really between business models. Pekao SA is a champion in corporate. Alior also has significant experience in corporate. On the other hand, Alior, I'm saying it based on my experience as a representative of mBank in the past, so they were also a champion in corporates in the last few years. So they have great people. And it is not only -- not just my personal opinion, but also others, others really complement the current management of Alior and the way they work. So it's also a strong organization. Pekao SA is also excellent in the retail, but there is also a lot that both banks can learn from each other. So this merger, you can see it as trying to bring more order. And at PZU, it was commercial. So Alior was owned by someone else, and Pekao SA, then we would encourage the management of Alior -- sorry, Pekao SA, sorry, wrong name. So we would -- so that's the problem, complexity. So we would then as the shareholder of Pekao SA, to buy Alior, so if it was owned by someone else, because then number two, a strong #2, right behind Pekao BP would emerge on the Polish market. And by the way, Polish commercial banks will very soon have to compete with pan-European banks. So when you look at strength of Pekao BP and the situation of the Pekao SA, okay, we are strong enough to consider it right now. But very soon, we have to realize that we will compete against entities that will have completed cross-border mergers. So we need a strong position in Europe. And a strong position in Europe can only be held by large entities. There is no way around it.

Maybe two last questions about the financial plans perhaps and also about banking. We've received questions about the plans to increased engagement among shareholders of Pekao. You answered it to a certain extent, there's no plans and also an analyst sent a question online. So the analyst have recalculated that till we assume a robust contribution of the bank to our profit and can we generate synergies here? And the second question is about the average annual increase of our revenues, how it looks? What it looks like in the vision into the individual segments?

So I will tackle the synergies, okay? That's why we took the decision to lead to consolidation under the umbrella of Pekao SA, because we would like to the contribution in this or the other model to be at a similar level, like now. So taking into account the current conditions and the landscape of decreasing interest rates, so it seems that from our side as an important shareholder, there will be some expectation with regard to the revenues and the result and the dividend as well. When it comes to the insurance segment, we expect in the coming period that the market will increase -- will go up on the side of the non-life insurance, and it's going to be a 2-digit growth. We said why? Because the great support when it comes to the economy, great transformation projects and national resilience and recovery plan. So this engine will be supported more than last year in terms of individual consumption that will translate into growth in GDP. There is a strong correlation between GDP and demand on services. So we expected on the side of non-life insurance, the growth will be two-digit. Of course, the spread across segments will depend, we think that the greatest contributor from the perspective of the scale and increase is going to be the mass segment. We said that versus the starting point, we expect the mass segment to increase at least by 30%. In the corporate segment, this growth will not be lower than 25%. And also significant increase in foreign entities, and this growth will be prorated to their presence in our portfolio, a bit lower scale of growth in PZU when it comes to life business. And here, it will be made of two components. On the one hand, a very dynamic growth on the side of the individual clients, especially protection product. And here, we want them to be responsible for a vast majority of growth when it comes to the contribution to the consolidated market. On the side of the insurance that for many years have constituted our largest engines in life insurance. We will do everything as the CEO said, in case of PZU, the strategy is a strategy and PZU saying no to end of life. So we will do everything. So as the value generated here be not lower than the one that will be -- that we will benefit from this year, but we are aware of the challenging of the aging portfolio and same signals telling us that we are going back to the fatality rate from before the pandemic. And we can see that in health segment, we expect large capital expenditures, we want the value to double within the period. And when it comes to the portfolio related to investment, all the time keeping a high contribution despite decreasing interest rates, we arranged assets this year. We made everything in order to extend their maturity with regard to high interest rates, and we know that we can be the beneficiaries across the period of the strategy. So that was just briefly.

Okay. We have exhausted time available. We have a few questions yet, but they will be answered directly by e-mail. Thank you very much. Well, I would like -- we're wrapping up.

Okay. So ladies and gentlemen, thank you very much for joining us for this conference, for your time and for listening to our new presentation, and I didn't manage to say that, but I wanted for the strategy to get through. That's -- and the effect of work of the Management Board of our colleagues, and we did it. Thanks to interaction with Supervisory Board under the supervision of Marcin, and the Strategic Committee and Mr. Kaleta. So we had a lot of interaction and a lot of efforts have been made in order to arrange this content. So I would like to thank them for that. We wish you a great day. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]