Insurance giant PZU's sales success after lean years

After two poor years PZU, the largest domestic insurance group, increased its sales. In the first half of the year the company's property and life insurance departments posted a zł.6.62 billion income. "The lowering of income from individual insurance contributions was compensated by an increase in group insurance contributions," said PZU's president Cezary Stypułkowski. The whole PZU group enjoyed a net profit of zł.938 million, almost 20% more than the zł.778 million of the first half of 2003, mainly due to a lower CIT rate. However, its gross income, zł.1157 million, is 2.5% lower than in 2003. "This is mainly due to increasing our contribution reserves in the property department and implementing strategic projects. It is also an effect of increasing administrative costs connected with implementing a group working system," explained Stypułkowski. The whole life insurance market grew in the first half of 2004 with ten major insurance companies increasing their life insurance income by 8.4%. (Puls Biznesu, p. 3) D.W.