PZAKY Powszechny Zaklad Ubezpieczen SA (PK)

WARSAW--Polish insurer PZU SA (PZU.WA) expects to expand its business in Central Europe through acquisitions in the medical sector as part of its updated strategy, the company said Wednesday.

Central Europe's largest insurance company plans to spend 450 million zlotys ($121 million) on purchases of medical services companies and invest at least another PLN350 million in its own chain of clinics with the goal of becoming the leading private provider of healthcare in Poland by 2020.

After acquiring rivals in the Baltic countries for 258 million euros ($293 million) in 2014 the company wants to more than double foreign operations' share in revenues to 8%. Further acquisitions in the region will help meet this goal, it said.

PZU also also plans to solidify its hold on the domestic insurance market while maintaining return on equity of 20%.

The company is controlled by the Polish government.

Write to Patryk Wasilewski at patryk.wasilewski@wsj.com

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