Polish insurer Compensa is sinking in financial losses

The financial situation of Polish insurer Compensa, listed on the Warsaw Stock Exchange (WSE), appears to be worse than reported at the beginning of the year. Yesterday, the insurer presented its financial report for the previous year and revealed a loss of zl 81 million, with zl. 45 million in losses coming in the last three months of 1999. Compensa's losses from last year are twice as much as initially reported while its insurance activity safety factor was so low it had to present a restructuring plan to the State Insurance Supervisory Office (PUNU). The insurer has already put zl. 39 million from a March shares issue into restructuring, instead of spending it on computerization as initially planned. PUNU says Compensa's plans are vague and suggests changes in the board of directors. (Gazeta Wyborcza, page 25) J.K.