(Releads with strategy, add CEO comments)
By Adrian Krajewski
WARSAW Aug 27 Polish insurer PZU is
already planning further acquisitions at home and abroad as it
waits for regulators to clear its purchase of most of RSA's
eastern European operations.
The 360 million euro ($475 million) deal, signed earlier
this year, will see PZU take control of Lithuania's biggest
insurer, Lietuvos Draudimas, Latvian rival AAS Balta, an
Estonian unit of RSA's Danish insurer Codan Forsikring and
The takeover will consume only a fraction of PZU's $3.8
billion cash pile and Chief Executive Andrzej Klesyk made clear
his intention to move into new business areas.
"We plan to announce our new strategy in the autumn," PZU
Chief Executive Andrzej Klesyk said on Wednesday. "There will be
no revolution, but the strategy will include other business
lines, healthcare in particular."
"We're looking for new takeovers in the medical sector. We
are not backing out of foreign takeovers among insurers."
PZU is too big for regulators to permit further takeovers of
Polish insurers. It wants to tackle local rivals, including
units of Talanx, AXA, ING and
Generali, by pushing beyond its core business.
The group, which has a market value of almost $13 billion,
plans to expand in healthcare after buying medical and spa
businesses from state-controlled oil refiner PKN Orlen
and utility Tauron earlier this year.
PZU posted a larger than expected, 15-percent rise in
second-quarter net profit on Wednesday, thanks to higher
After issuing 500 million euros worth of senior debt last
month, the company is in talks with the local financial watchdog
over a planned subordinate debt issue.
(1 US dollar = 3.1778 Polish zloty)
(1 US dollar = 0.7584 euro)
(Editing by Tom Pfeiffer)