PZU Plans to Buy Banks in Poland, Expand Insurance Business Abroad
August 24 2016 - 3:29AM
Dow Jones News
By Martin M. Sobczyk
WARSAW--Polish insurer PZU SA (PZU.WA) said on Wednesday it
plans to build a banking group that would be in the top five by
assets in Poland.
The strategy is in line with a policy put forward by Poland's
socially conservative government, the company's largest and
controlling shareholder,
The government said in June it was encouraging the large
companies it controls, including PZU, to consider acquiring some of
the banks that eurozone owners are looking to sell in Poland.
Polish officials have said they want to cut the share of banking
assets held by foreign owners from about 60% at present.
PZU, whose second-quarter net profit fell 56% in annual terms to
166 million zlotys ($44 million) due to asset-impairment charges
and a rise in compensation claims, said that by 2020 it would boost
the contribution of its banking operations to a net profit of
PLN450 million a year and hold at least PLN140 billion in assets in
them.
PZU's second-quarter gross written premiums totaled PLN5.06
billion, up 14% in annual terms.
The company, which is Central Europe's largest insurer, is in
talks with Italy's UniCredit SpA (UCG.MI) about a possible takeover
of Bank Pekao SA, in which UniCredit holds 40%, people familiar
with the talks said on Tuesday. Pekao is Poland's second-largest
bank by assets.
PZU Chief Executive Michal Krupinski said on state radio this
week that the company is in talks about buying several other banks
but didn't give details.
PZU also said on Wednesday it plans to look for potential
takeover targets in the insurance sector outside Poland. It already
owns insurance businesses in Lithuania, Latvia, Estonia and
Ukraine.
Write to Martin M. Sobczyk at martin.sobczyk@wsj.com
(END) Dow Jones Newswires
August 24, 2016 03:14 ET (07:14 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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