PZU's 2007 results shows it continues to lose ground

The group net profit was zł.3.6 billion in 2007, the second-highest ever but down from zł.3.7 billion the year before and well below a forecast of zł.5 billion. More worrying still, the non-life business saw its market share fall below the 50% mark for the first time ever, to 49% from 53%, even as revenues from  premiums rose 4% to just under zł.8 billion. Revenues from premiums at PZU Zycie, the life business, dropped 4% to zł.7.3 billion, and the loss in market share was even steeper, by 6 points to 30%. However, Andrzej Klesyk, PZU CEO, put a brave face on the news, noting that the current turmoil in the financial markets was the right time for a cash-rich company such as PZU to hit the acquisition trail. According to Klesyk, PZU is interested in acquiring a fund manager or a pension fund. (Gazeta Wyborcza, p. 28; Rzeczpospolita, p. B1) R.M.