PZU profits up 15% on 2002, future still in question

Dominant insurer PZU yesterday reported a solid profit rise of 15% in 2002 to reach zl. 1.24 billion, as lower costs and improved asset management helped offset the economic slowdown. The company warned, however, that its net result might fall this year as lower interest rates limit gains on government debt held in its portfolio and due to plans for heavy investment in the modernization of the group. The Treasury now plans to hold PZU's initial share offering in the second half of the year, but analysts say a stock market slump and delays to the launch of a tender for a privatization adviser are likely to delay the flotation until 2004. Meanwhile, according to unofficial information reported by Puls Biznesu, PZU's strategic in vestor, Dutch insurer Eureko, sent a letter to the government in December declaring its interest in withdrawing from the company, and informing them of its search for a buyer for the stake. Eureko representatives, however, vehemently deny the reports. (Reuters, Puls Biznesu, p. 4) A.K.