PZU plans expansion in Central and Eastern Europe

PZU SA, the leading domestic insurance group, is to spend between zl.1.5 billion and zl.2 billion on an ambitious regional expansion plan. The company will extend its operations to the majority of Central and Eastern European countries, with the exception of Germany and Belarus. Together with its strategic partner Eureko, PZU plans to buy several Central European companies. Negotiations are already under way with Lindra, a Lithuanian insurer, and PZU also intends to participate in the privatization of Slovenska Postoiwna. However, before PZU can act its new board of directors must finish sorting out the company's domestic operations. Apart from its regional expansion, PZU's plans also include entry on to the Warsaw Stock Exchange in October 2001, and a major personnel restructuring. According to PZU president Zygmunt Kostkiewicz, "Currently, PZU seems to be overcapitalized and its money should be used in a careful manner." (Puls Biznesu, 7 May, p. 1, 8) M. S.-C.