Glossary beginning with P

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P/BV

Market price per share / book value per share

P/E

The company market price per share / profit per share

payout ratio

A dividend payout ratio, i.e. the quotient of the dividend paid and the company’s net result stated as a percentage

profit margin in group and individually continued insurance (in PZU Życie)

An indicator calculated as the ratio of the insurance profit to gross written premium in the group and individually continued insurance segment, net of one-off effects such as, for instance, the conversion effect, namely the conversion of long-term contracts into short-term contracts and changes to technical rates, namely the rate used to discount technical provisions

Prudent person principle

The rule laid down in Article 129. Of Directive of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance Solvency II. The prudent person principle requires (re)insurance undertakings to invest assets in the best interest of policyholders, adequately match investments and liabilities, and pay due attention to financial risks, such as liquidity and concentration risk

PSFA

Polish Financial Supervision Authority; it exercises supervision over the banking sector, capital, insurance, and pension market, supervision over payment institutions and payment services offices, e-money institutions, and cooperative saving and credit institutions, www.knf.gov.pl