Poland's PZU Profit Falls 21% in 2015

WARSAW--Central Europe's largest insurance company PZU SA (PZU.WA) on Tuesday said its 2015 net profit fell 21%, largely because its investment portfolio underperformed amid volatile markets.

The company, which is controlled by the Polish government, said its net profit was 2.34 billion zlotys ($608 million), the lowest since it went public in 2010. The government is the largest shareholder with a 35.19% stake.

PZU's gross written premiums rose nearly 9% to PLN18.4 billion, while claims rose nearly 3% to PLN11.9 billion.

CEO Michal Krupinski, who took over PZU in January after a change of government in Poland, attributed the decline in results to a 34% drop in profit on the company's investments. He also said the profitability of PZU's core insurance business fell.

PZU's shares have fallen nearly 18% over the past year, in line with the general trend on the Warsaw Stock Exchange.

Write to Martin M. Sobczyk at martin.sobczyk@wsj.com

(END) Dow Jones Newswires

March 15, 2016 03:47 ET (07:47 GMT)

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