PZU becomes top rated Polish insurer

Standard & Poor’s has increased the rating of Polish insurers PZU SA and life associate PZU na Zycie SA to A with a stable outlook from A-. The A rating is on par with the rating assigned to the Polish state. PZU noted that this was the highest rating that the company has received in its history, and was the highest that had been attributed to a Polish financial institution. S&P noted that the companies had made progress in implementing key aspects of their modernisation strategy. The group also continues to enjoy a strong competitive position which included unrivalled distribution capabilities (which include lower distribution costs than rivals), and high brand recognition among the Polish population. At the same time, Fitch Ratings has downgraded the insurer financial strength of TU Europa SA and its life insurance associate TU na Zycie Europa SA to BB from BBB-, both with a negative outlook. The decision reflects the increased concentration of the insurers’ investment portfolio in two related banks, Getin Bank and Noble Bank.