PZU ahead in property, loses ground in life segment

Only two property insurance companies managed to record a technical profit from insurance operations last year, TU Europa and the giant Powszechny Zaklad Ubezpieczen (PZU), which recorded a net profit of zl.584.9 million. Despite huge controversy surrounding the clash between its shareholders, the Eureko/BIG BG consortium and the Treasury, PZU managed to increase its premiums collection by 11.8%, better than the market average of 10%. PZU shines compared to other property insurers, many of whom conducted costly advertising campaigns or portfolio restructuring, as a result of which the market as a whole was stagnant last year. The situation looked better in the life insurance segment, as the market grew by 20%. This was mostly due to expansion of large foreign companies, such as Commercial Union, Nationale Nederlanden and Amplico Life, who signed on many new individual customers. As a result, the market-leading PZU Zycie's market share dwindled to 52%, from 77% four years ago. Despite stiff competition, however, PZU Zycie showed a zl.401.2 million net profit, by far the largest in the sector. (Puls Biznesu, p.3) T.J.