In order for PZU, the largest domestic insurer, to reach a ratio of costs to revenues from premiums as desired by the company's management, the insurance giant will have to reduce administrative costs by as much as zł.120-140 million. As a step in that direction, the company yesterday launched a mass layoff program.

Cuts at PZU's headquarters are expected to involve 500 people. This move will bring about savings of around zł.80 million. Therefore, analysts speculate that further job cuts are just a matter of time.

According to PZU president Andrzej Klesyk, the ratio of costs to revenues from premiums should be below 10 percent. By the end of last year the insurer had administrative costs amounting to zł.1.556 billion, while the revenues from contributions reached zł.14.3 billion.

Source: Parkiet