Polish insurer PZU is seeking to develop its asset management arm by investing in new areas as well as boosting its existing investments in real estate and corporate debt, said the company’s chairman Andrzej Klesyk.
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Also, the firm is planning to enhance its returns by developing its asset management business, reported Business Recorder.
Currently, PZU has around PLN40bn in assets under management, of which around PLN30bn are in the form of Polish government bonds.
"Currently the contribution to our net profit from asset management is less than 1%. We can flex our muscles, make a big effort, but compared to, for instance, London firms we are small when it comes to asset management," Klesyk said.
"We will enter new classes of assets and develop the ones we already have like real estate or corporate debt. I’d wish that in a few years 60% of our debt portfolio was in state debt and 40% in corporate debt," Klesyk added.
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By GlobalDataPZU currently has up to PLN6bn to buy new assets.
In addition, the insurer is planning to expand beyond its core business include a push into healthcare.
"At the moment we are launching preparations for the potential sale of part of our business in Lithuania and I think we will be able to do it no later than in the first half of 2015," Klesyk said.
