Polish insurer PZU beats Q1 forecasts despite profit drop from banking, weather
14/05/2026 05:54
May 14 (Reuters) - Poland's top insurer PZU PZU.WA reported a smaller-than-expected drop in first-quarter net profit on Thursday, hurt by weakness in its mass property insurance segment and softer contribution from its banking arm. Earnings at the insurer's stakes in Bank Pekao PEO.WA and Alior Bank ALR.WA were hit by a rise in Poland's corporate tax rate on banks and lower interest rates, while frost and snowfall drove higher claims in PZU's non-motor insurance lines. • Net profit fell more than 22% to 1.36 billion zlotys ($375 million) in the January-March period, above the average forecast of 1.27 billion zlotys in a company-compiled consensus • The result was also dragged down by the state-controlled insurer's investment segment • Operating profit in the segment fell 64% to 76 million zlotys, hit by adverse temporary foreign exchange differences on real estate and lower returns from equity instruments • The insurer flagged further escalation of the U.S.-Israeli war on Iran as a key risk for the rest of 2026. • PZU is pursuing a capital reorganisation with Bank Pekao that could release 15 billion to 20 billion zlotys. • However, the timeline for the tie-up has already slipped once on legislative delays, with completion now targeted by end-2027 • State Assets Minister Wojciech Balczun said the project had not fallen through and that a steering group was weighing several scenarios for releasing capital, Polish state news agency PAP reported on Tuesday, citing comments on TVP Info ($1 = 3.6252 zlotys) (Reporting by Rafal Nowak; Editing by Nivedita Bhattacharjee) ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))