News Parkiet

Insurance

Number of policies sold dropped

The number of insurance policies sold in Poland dropped by 386 thousands last year. However, the premium earned by insurance companies climbed to 1.55 bln zloty, largely because the companies charged more for business insurance. The drop in the number of policies sold reflects the fact that Latvia and Belarus became Green Card system members. Therefore their citizens don?t have to buy the public liability insurance (OC) when travelling by car to Poland.

Banking

BRE Bank cheated by currency broker

BRE Bank, the investment bank that announced on Friday it lost 17 mln zloty on its employee?s transaction, was cheated by its own currency broker - PARKIET learned from sources close to the company. The currency dealers said the reason for a loss might have been a weak internal control at the bank. The authorities who oversee the banking sector are considering to proceed with a probe into the banks which trade currency contracts.

Equity markets

NIFs to buy back stock

Fund.1, Victoria and Fortuna, three national investment funds (NIFs) managed by Ballinger Capital, offered to buy back its own stock. Altogether they want to spend 61 mln zloty. The funds offered a better price than their current quotes. They got the KPWiG, the Polish Securities and Exchanges Commission?s approval to exceed 33% ownership level. Currently each of the funds controls almost 25% of its own shares. When the buy back ends the funds are expected to reach 40% ownership level.

Steel industry

Prosecutor has drafted an indictment in Ferrum?s case

District attorney in Katowice has drafted an indictment against seven people suspected of manipulating the stock price of Huta Ferrum, an ironworks company, four years ago. The prosecutor says five shareholders, a stockbroker and an equity dealer with ties to TFI Colloseum investment holding pumped up the Ferrum?s stock in May 2000 in order to sell large blocks of shares in after hours trading. They are facing a penalty of up to three years in jail or up to 5 mln zloty fine.

Power industry

EWK almost ready to build windmills

Elektrownie Wiatrowe Kamieńsk (EWK), the wind power plant company, is close to finish the legal paperwork on its investment. It plans to build on the Kamieńsk hill 15 windmill power generators this year. Each of them will be over 100 meters high and together they will generate power of 30 MW. The company will become the largest wind power plant in the Central Poland. EWK plans to start selling power by the middle of next year. Bogusław Terlecki, the company?s CEO, expects the cumulative profits will exceed the costs of the investment within eight-year period.

Furniture industry

Nowy Styl plans significant investments

Nowy Styl, the largest maker of office chairs in Poland, plans to invest some 40 mln zloty this year, doubling the amount invested annually over the recent years. Currently the company negotiates the location of a new factory it wants to build. Nowy Styl earned net 23.4 mln zloty last year as the revenue climbed to 373 mln zloty. Adam Krzanowski, one of the owners of the Krosno-based company, said he expects the profit to double this year. Nowy Styl forecasts its revenue will increase by 15% this year. According to Krzanowski, sales in the first quarter were up 25%. Chairs made by Nowy Styl will be supplied to the Olympic Games in Athens.

Savings

Money flows into investment funds

980 mln zloty flew into investments funds in Poland in March. Their assets climbed to 35.36 bln zloty, beating a record set in September last year. During the first quarter investment funds? assets rose by 6.4%, reversing the loss in the final quarter of 2003. Units of the funds investing in equities were the best-sellers in March, while the bonds-investing funds continued to lose its clients. The Pioneer investme