Poland's PZU plans to raise 2007 net profit to 5 bln zlotys

WARSAW (Thomson Financial) - Poland's unlisted top insurer Grupa PZU hopes to raise its net profit by almost 60 pct to 5 bln zlotys in 2007, and plans to buy into one of the country's banks to bolster its market position, company managers said.

Last year the group, owned by the state and Dutch insurer Eureko, earned 3.2 bln zlotys, all of which it allocated to go on future investments.

'Everything points to the fact that 2007 will be another record year for PZU,' the group head Jaromir Netzel told daily Dziennik in an interview. 'The group's goal for 2007 is to have a profit of 5 bln zlotys.'

Life insurer PZU Zycie, which contributed 1.9 bln zlotys to the group's profit in 2006, plans to build or buy a medical services unit, and enter the banking sector.

'If PZU Zycie wants to make its position stronger in the bancassurance business, it should buy into one of the banks,' PZU Zycie chief executive Henryka Rupik told Dziennik.

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