(Adds details, analyst comment)
WARSAW May 17 PZU SA, central and
eastern Europe's biggest insurer, reported a 91 percent rise in
first-quarter net profit on Wednesday buoyed by investment
results, its car insurance business and a mild winter which
meant less compensation for farmers.
The state-run company reported a net profit of 940 million
zlotys ($250.25 million), topping the 888 million expected by
analysts and marking its highest quarterly result since the
second quarter of 2014.
"The result is strong and close to my expectations. PZU was
supported by a good situation on the stock and bond markets, as
well as a mild winter which strongly limited compensation to
farmers," said Kamil Stolarski, an analyst at Haitong Bank.
Gross written premiums rose to almost 5.8 billion zloty from
4.8 billion a year earlier and beat the 5.6 billion expected by
Analysts said that shares in PZU may slightly outperform the
stock market today, but investors' attention will be focused on
management's potential comments regarding PZU's dividend.
The cash-rich company boosted expectations regarding its
dividend by saying on Wednesday that it expected more than 450
million zloty in dividends from Bank Pekao SA which it
agreed to buy last year.
PZU shares have risen 35 percent in 2017, outpacing a main
index up 20 percent.
($1 = 3.7562 zlotys)
(Reporting by Marcin Goclowski; additional reporting by Pawel
Florkiewicz; editing by Jason Neely)