Polish insurer PZU's profit slips as mass segment, financial income weigh (updated)
26/02/2026 06:21
Adds share move in paragraph 2, analyst quotes in paragraphs 3 and 5, details on mass-market business in paragraphs 1 and 4 By Rafal Wojciech Nowak GDANSK, Poland, Feb 26 (Reuters) - Poland's top insurer PZU PZU.WA reported a largely expected drop in its fourth-quarter profit on Thursday, as price discipline amid competition dented motor insurance sales, weighing on its mass-market business. Shares of the company were down 5.2% by 0920 GMT, the biggest fallers on Poland's blue-chip index WIG20 .WIG20. While the results were broadly in line with the company-compiled consensus, Erste Group analyst Lukasz Janczak warned that lower non-life insurance revenue "could suggest some competitive pressure on pricing". PZU's result from insurance services fell 6.6% to 1.14 billion zlotys ($319 million), dragged by a slump in the mass-market non-life business, as its policy of price increases to defend profitability led to a 5.2% drop in motor insurance sales amid stiff competition. "An intensifying price war does not bode well for the coming quarters," Trigon analyst Maciej Marcinowski said, though he added it was positive that the insurance result beat expectations despite lower revenue. Analysts had expected the result from insurance services to come in at 1.09 billion zlotys. Earnings in the life insurance business also fell, largely due to a high base effect from the fourth quarter of 2024, after one-off assumption updates. Net financial income for the core group, excluding banks, dropped 46% year-on-year, driven by currency exchange rates, weaker returns on corporate debt and lower valuations of medical-sector shares. PZU's quarterly net profit fell 12% to 1.47 billion zlotys, while analysts polled by it were expecting 1.46 billion zlotys on average. This drop was partially offset by a positive contribution from the banking segment, which includes PZU's 20% stake in Pekao PEO.WA and a 32% stake in Alior Bank ALRR.WA, where profit grew 8.3% to 588 million zlotys. ($1 = 3.5731 zlotys) (Reporting by Rafal Nowak; Editing by Milla Nissi-Prussak) ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))