PZU unveils new strategy

WSE-listed, state-owned insurer PZU has raised its return on equity target for 2020 to more than 22 percent in its latest strategy update. Previously that figure stood at 18 percent. The company hopes to achieve it with closer ties with the banks it owns, as well as higher margins on its core insurance business. PZU also plans to use new technologies, such as AI. Overall, by tightening cooperation with lenders Pekao and Alior, plans to gain PLN 1 billion in new premiums for the insurer, 1 million new clients for the banks and PLN 100 million in savings. PZU also said it planned to pay out at least 50 percent of its net profit in dividends, and this proportion could rise to 80 percent if it did not conduct a major takeover. The insurer also plans further expansion in the CEE region, where it hopes to takeover companies that are among the top three biggest insurers on the local market and will bring “satisfying profitability levels.” Overall, by 2020, PZU hopes to get 8 percent of its revenue from the foreign activity.