PZU posts impressive Q1 revenues, but weak profits

Revenues from its non-life business increased by 6%, to zł.2.45 billion, but sales growth was especially impressive at PZU Życie, the life-insurance unit, where premium revenues soared by 24% to zł.2.24 billion, driven by sales through banks. And preliminary data for April shows that PZU Życie generated a record zł.3.1 billion in premium revenues.

The company also managed to slash costs in Q1, by 7%. "It is our strategic goal for revenue growth to outpace cost growth and to defend our market share, so we are very happy with the results," said Andrzej Klesyk, the CEO.

However, the Q1 performance was marred by a steep fall in net profit, which plunged by more than 37% to zł.732.1 million due to poor returns on the company's investment holdings, which were hit by the downturn in the financial and equity markets.

Klesyk reiterated his earlier declaration that PZU was eyeing takeover targets in the CEE region and it had a war chest of zł.7 billion for M&A deals. (Puls Biznesu, p. 9; Dziennik - The Wall Street Journal Polska, p. 10; Parkiet, p. 15) R.M.