Massive profits for PZU could mean bumper dividend

The previous forecast presented to shareholders at the general meeting in June this year stated that consolidated net profit should total zł.2.52 billion and revenues from premiums should amount to zł.14.04 billion. According to the corrected prognosis, consolidated net profit will amount to zł.2.82 billion which marks a growth of 28.5% in comparison with 2004. The technical profit will be higher by around zł.175 million, despite the fact that PZU group expects its revenues from premiums to be 1.2% lower than planned. The consolidated net profit of the group does not include, however, the zł.956 million dividend that the company received from PZU Życie and this dividend as the revenue from investment will further increase the profit of the mother company. As a result. PZU is to post a net profit of zł.2.52 billion which means that if the company will continue its policy of spending 20-50% of the profit on dividends, the shareholders may expect a dividend of zł.7.3-14.6 per share. (Parkiet, p. 1) E.B.