Polish insurer PZU needs a plan for Pekao, Alior bank stakes, minister says

Alior Bank SA

03/09/2024 06:00

WARSAW, Sept 3 (Reuters) - Poland's biggest insurer PZU
 PZU.WA  needs a strategy to tackle its ownership of stakes in
two banks, which is complicating its valuation, the state assets
minister said.
    Globally, insurers are focusing on core business and are
spinning off banking operations, Jakub Jaworowski said in an
interview with a small group of journalists. 
    State-controlled PZU is the largest shareholder in Pekao SA
 PEO.WA  and Alior Bank  ALRR.WA  with 31.9% and 20% 
respectively. 
    It is problematic for PZU to own stakes in two banks that
compete with each other in some areas and makes it challenging
for analysts to value the insurer's shares, Jaworowski said.
    "The current situation in PZU, as I look at it a bit as a
consultant and based on some benchmarks, is unusual because
other groups do not have such a structure," Jaworowski said. 
    "And it is doubly extraordinary and it seems that the
current situation is not good for PZU for many reasons." 
    He said it was up to PZU, not the government, to address the
 issue in a new strategy the insurer is working on.
    Jaworowski also said Poland had no plans for asset
sell-offs. 
    When asked if the ongoing sale of Citigroup's retail arm in 
Polish lender Bank Handlowy  BHW.WA  was an opportunity to
increase the government's share in the banking sector,
Jaworowski said that would be hard to justify. 
    "If any such specific cases arise, we will analyse them,"
Jaworowski said.
    "It is very difficult to imagine that something like this
would happen now, because we are already at such a high level of
state participation in the banking sector that it would be
difficult to justify a further increase."

 (Reporting by Marek Strzelecki, additional reporting by Anna
Koper; editing by Barbara Lewis)
 ((Marek.Strzelecki@thomsonreuters.com;))