PZU insurer prepares for group reorganisation, transaction likely to be completed by end-June 2026

"We are in the process of preparing for a reorganisation of the group, which is intended to release a certain amount of surplus capital that is tied up in the group and cannot be used due to the current structure," Benczak told reporters at the meeting with management boards representatives of the PZU Group's foreign units in Ilawa.

At the beginning of June, PZU and listed lender Bank Pekao signed a memorandum of cooperation to carry out the merger.

"We are implementing what is written in the term sheet. We have set up teams, we are cooperating with Pekao, we are cooperating with stakeholders, and analyses are being conducted to carry out this process without disruption. Certain changes in legislation are necessary for this process," acting CEO Benczak said.

According to the memorandum, the parties intend to complete the potential transaction, i.e. the merger of Bank Pekao and PZU, after spinning off its operating activities, by June 30, 2026.

"It seems that this deadline is realistic," Bogdan Benczak assessed, adding that it is too early to determine whether the current strategy of the PZU Group will be updated.

"My most important task is to organise, stabilise and [make PZU] return to the position of undisputed leader in the country. The group's reorganisation project is also an important issue," the acting CEO said.

He pointed out, however, that the management board needs to take a fresh look and reexamine the strategy.

"The strategy is not set in stone – we need to take a look at it because a lot has happened over the past six months. We have a project related to the Danish compromise, and there are a whole host of things that were not taken into account," Benczak added.

As he stressed, the key issue for him now is the operationalisation of the strategy.

The acting CEO said that PZU does not plan to change its dividend policy.

"For me, the most important thing is to deliver better and better results so that the dividend is as high as possible," Benczak told reporters.

The PZU group is present in five countries in Central and Eastern Europe. As part of its insurance offering outside Poland, the group sells products under the PZU brand (in Estonia and Ukraine), Lietuvos Draudimas (in Lithuania) and BALTA (in Latvia).

The share of foreign companies in the PZU Group's premium income increased from 4.2 percent in 2014 to 9.9 percent in the first half of 2025.

As the acting CEO pointed out, currently, the group aims for organic growth.

"If any acquisition opportunities arise and they are in line with our assumptions, we will of course consider them," Benczak stipulated.

In June, PZU and Pekao signed a term sheet concerning the reorganisation of the PZU and Pekao groups, establishing a project to prepare and carry out the transaction in two steps: the division of PZU, leading to the separation of PZU's operating activities into a company wholly owned by the PZU holding company, followed by the merger of PZU, as the acquired company, with the bank as the acquiring company.

Ultimately, Bank Pekao would be listed on the Warsaw Stock Exchange, and PZU shareholders would receive Pekao shares currently held by PZU, as well as newly issued shares of the lender.

seb/ ao/ han/