Polish insurer PZU misses profit Q2 expectations as compensation costs bite
Adds details throughout, comments from CEO in paragraph 5
GDANSK, Aug 29 (Reuters) -Poland's top insurer PZU PZU.WA reported second-quarter profit below estimates on Thursday, hurt by higher costs from compensations paid out for weather damages.
The company reported net profit of 1.19 billion zlotys ($308.6 million) for the period ended on June 30, compared to the 1.28 billion zlotys analysts had forecast in a company-compiled consensus. It was also a decline of 22% from the previous year.
Insurance revenues climbed 10% to 7.28 billion zlotys on better sales of non-travel and Auto Casco insurances.
However, its expenses rose 18% to 6.11 billion zlotys due to increased compensations the insurer had to pay out to its clients for numerous weather-related damages during the quarter.
"When it comes to property insurance we have maintained double-digit dynamic in non-travel segment, especially corporate. The growing share of these products... is significant due to their lower cyclicality and higher profitability," said PZU CEO Artur Olech in a press release.
PZU's half-year earnings edged down 9% to 2.45 billion zlotys. The company is targeting a full-year profit of 4.3 billion zlotys.
($1 = 3.8556 zlotys)
Reporting by Mateusz Rabiega; Editing by Christopher Cushing and Varun H K
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