News Parkiet

Insurance

Polish car insurers losing business

due to cross-border travel slowdown

Polish insurance industry is losing money as a result of declining number of cross-border visits in recent years. Data published by KNUiFE insurance watchdog shows the number of mandatory car insurance policies fell by 780.000 over nine months of last year. This unexpected decline has cost Polish insurance firms an estimated 218 million zloty in lower premiums in January to September period.

Mandatory, short-term ?OC? policies typically purchased by new car owners and by foreigners visiting Poland account for the majority of last year?s decline.

The number of cross-border visitors from Poland?s eastern neighbors fell 13.8 percent last year to under 10 million following 12.6 percent decline in 2002. Travel visa regime in effect since October 2003 will likely further reduce movement across eastern border, forcing steep price hikes for Polish residents by insurance firms seeking to recoup their losses.

Food processing

Beef-San to build new plant using assistance from Italy

Beef-San meat processing plant is planning to build a new, EU-compatible slaughterhouse using funds provided by as-yet-unnamed Italian business partners, its CEO told PARKIET on Friday.

?We?ve already received local zoning permit. Construction is scheduled to begin in March. I?m confident the new slaughterhouse will be open by September?, says Jerzy Biel, who owns 5 percent of the company. Mr. Biel says he is going to Italy soon to negotiate equipment purchases for the new plant.

Apparel

Bytom finally breaks even

Bytom S.A. clothing maker posted a modest profit last year thanks to one-time gains after some of its creditors decided to write off loans granted to the ailing company. Best known as maker of men?s suits under communism, Bytom has lost money in each of the preceding five years.

?2003 wasn?t the breakthrough year, but we?ve certainly started turning the company around?, says CEO Tomasz Sarapata, who himself owns almost 10 percent of the company ?I am convinced that we?ll start posting earnings on sales this year?, he added.

Equity market

ATM up 30 percent on IPO

Shares of ATM Grupa TV producer rose sharply on Friday after they started trading on the Warsaw bourse in this year?s first IPO. The stock closed at 46.9 zloty, up 30.3 percent from its issuing price.

?There?s a lot of demand for this stock and supply is very limited?, said Michał Kowalczewski from DM Millennium, which underwrote the IPO. Wrocław-based ATM has originally priced its 47-million zloty issue at 36 zloty per share.

Founded by Mr. Tomasz Kurzewski (photo), ATM sold a total of 1.3 million shares to outside investors. Proceeds are to be used to finance construction of new TV production studio and to purchase TV equipment.

Based on Friday?s closing price, ATM Grupa has market capitalization of nearly 170 million zloty ($46 million).

Mutual funds

Insurers launch new mutual funds

At least two international insurers say they?ll launch their own mutual fund companies in the first quarter of this year to retain clients interested in individual retirement accounts. Germany?s Allianz is hoping to attract up to 200 million zloty in assets by the year?s end, offering equity, bonds and balanced mutual fund families. AIG?s Amplico Life has already asked Polish SEC for approval to distribute four mutual funds using its nation-wide network of insurance brokers.