PZU to cut jobs

PZU to cut jobs

Poland's largest insurance group, the state run insurer PZU, is to cut jobs affecting up to 2 percent of the workforce in its two core units as part of a plan to streamline operations, it said on Tuesday.

"Job force cuts will concern up to 230 people in PZU and PZU Zycie, which accounts for 2% of the workforce in both companies," PZU said in a statement.

The PZU unit handles non-life insurance, and PZU Zycie provides life insurance.

The restructuring is due to take place in October and November, says the comapny, and its cost will be included in this year's financial results, the company said.

PZU reported a profitable second quarter of the year, beating analyst’s expectations by recording a 15% year on year rise in Q2 profits to PLZ960m ($302m), from PLZ837m in the same period last year.

The improvement was mainly due to higher yields on deposits, the company said.

PZU’s efforts to streamline comes a day after it was revealed that Axa was looking to buy the insurance branch of Poland's mBank for 500m to 600m zlotys ($154.2-$185m) as reported by local Polish newspaper Puls Biznesu reported.

Axa is planning to to boost its market presence in Poland and to take business from PZU, Puls Biznesu reported.

MBank said it started a process that could lead to an eventual sale of its insurance arm earlier this year. The decision was due to be made by the end of 2014.

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