Polish insurance giant PZU's Q1 net profit was higher than the combined results of banks Pekao and PKO BP despite the fact that it raised less on polices on annual basis.

Grupa PZU was zł.1.172 billion in the black, which is 60.2 percent more than in the corresponding period of last year. The growth in earnings was mostly due to higher revenues from depositing funds, which achieved results of zł.413 million against zł.35.3 million last year.

"Last year we lost on investments in shares. Now we have reduced their share in the portfolio, while earnings were achieved on the correct choice of bonds," said Michał Witkowski, spokesperson for PZU. In terms of premiums, PZU noted a 6% y/y fall to zł.4.49 billion.

"PZU is losing market. In terms of property insurance, it noted fewer premiums, while Allianz or Ergo Hestia collected higher premiums," said Michał Z. Broda, an analyst with Ogma.

Both of its main companies recorded growing insurance costs. "PZU has an enormous capital surplus, which is not being utilized. Safety requirements are far exceeded," Broda said.

Sources: Puls Biznesu; Parkiet; Rzeczpospolita