PZU post bumper first half profits, but will it continue?

In the first half of 2002, the PZU Group posted a profit of zl. 696 million. Last year, first half profits were around half that - zl. 329 million. PZU's president, Zdzislaw Montkiewicz told journalists at Friday's press conference, that this excellent result was achieved thanks to strictly controlling costs. The result of the group improved also thanks to better returns from Powszechne Towarzystwo Emerytalne PZU (PTE PZU) which recorded a gross profit of zl 300,000 in comparison with earlier losses of zl. 21.8 million. PZU management admitted that insurance contributions decreased by 1.1% due to the stagnant economic situation, while insurance claims paid out rose by 3.4% to zl. 2.18 billion. "The highest increase in payments went to farmers who made claims due to strong winds which destroyed many crops during the spring," said the PZU first half report. The PZU group controls 61.7% of the insurance market. (Gazeta Wyborcza, Sept. 7-8, p. 27) A.Z.