PZU dismisses president of its life insurance associate

The board of insurer Powszechny Zaklad Ubezpieczen (PZU) has defied the State Treasury, its majority shareholder, and dismissed Grzegorz Wieczerzak, president of PZU Zycie, PZU's life insurance arm. The newly appointed president is Jerzy Zdrzalka, who is also PZU president. A memorandum to change the management at PZU Zycie had been signed in June by the major shareholders of PZU, the pan-European insurer Eureko, BIG Bank Gdanski, and the State Treasury. However, following the dismissal of then Treasury Minister Emil Wasacz, the terms of the memorandum were not realized since the new Minister opted for a more confrontational approach towards the other investors. Hopes to resolve the row arose Friday during a shareholders'meeting of PZU, but representatives of the treasury blocked the proposed changes. The Treasury's conduct infuriated both the management of PZU and Eureko, who accused the state of breaching not only the commercial code but also the by-laws of the company. Eureko has allegedly sent a letter of protest to the Ministry in addition to filing a lawsuit. (Gazeta Wyborzca, p. 22, Parkiet, p. 1).