PZU success masks serious financial difficulties among majority of insurers

A report by the Polish Insurance Supervision Office (PUNU) reveals that the country's insurance companies recorded a combined net profit of over zl.1 billion last year. However, even though the result represents a 125% increase from 2000, it leaves considerable cause for concern, since the profit was generated almost entirely by industry giant PZU. In fact, 42 out of the total of 69 companies on the market were operating in the red last year. "Out of 40 life insurers, just four recorded a positive result. I don't know how long they can survive with such high losses," said Jan Rosciszewski, president of TUnZ Cardif Polska. Overall, Poland's life insurance companies, including PZU Zycie, made a net profit of zl.348 million last year, based on premium receipts of zl.9.3 billion, which were 11% up from the previous year. Meanwhile, property insurers registered a 5% increase in premiums, which were worth in total zl.13.2 billion, and recorded a net profit of zl.740.5 million. (Gazeta Wyborcza, p. 19) M.K.