During the 15th edition of the European Financial Congress in Sopot, it was announced that PZU Group and Bank Pekao have signed a memorandum of cooperation. According to PZU CEO Andrzej Klesyk, the planned merger is expected to be a breakthrough for Poland’s entire financial sector, creating one of the largest banking-insurance groups in Europe.
A New Strategy: Merging an Insurer and a Bank
The signed memorandum outlines a major reorganization of the PZU Group. The first step involves separating two companies from PZU SA: an operational entity focusing on property insurance and a holding company that is ultimately set to be merged into the structure of Bank Pekao. The full merger is scheduled for completion by mid-2026.
The transaction will utilize the so-called “Danish compromise”—a mechanism under EU regulations that treats banks’ capital involvement in insurance companies more favorably than the reverse. This approach is expected to unlock as much as PLN 15–20 billion in capital surplus, which would not be possible under PZU’s current ownership structure—particularly in light of upcoming regulatory changes under Solvency II set for 2027.
Industry Leaders Weigh In
Andrzej Klesyk emphasized that building such a large capital group represents both an organizational and intellectual challenge. The objective is to create an institution capable of playing an active role in Poland’s key economic initiatives.
Cezary Stypułkowski, CEO of Bank Pekao, noted that transaction details cannot yet be disclosed, but the proposed structure complies with the latest regulatory standards and market expectations.
Other market participants also expressed optimism. Paweł Borys of MCI Capital TFI remarked that the merger will lead to the emergence of two strong banking-insurance groups in Poland. Tomasz Bardziłowski, CEO of the Warsaw Stock Exchange, highlighted the positive investor response to the announcement. Szymon Midera of PKO BP noted that the development of such a group could play a crucial role in financing Poland’s strategic investments.
Artur Borowiński, CEO of ERGO Hestia, added that even amid market consolidation, there remains room for competitive insurers to grow.
A New Financial Power in Europe
The merger between PZU and Pekao is poised to create one of the largest financial institutions in Central and Eastern Europe. The group’s lending capacity will increase significantly—by around PLN 200 billion—enhancing its ability to finance key national projects such as the energy transition, the Central Communication Port (CPK), and the construction of nuclear power plants.
“We must attract large-scale capital from the West and Asia and strengthen our position in Europe,” said Andrzej Klesyk, referring to Mario Draghi’s report and the broader challenges facing the competitiveness of the European economy.
Source:
ManagerPlus – PZU and Bank Pekao plan merger to transform Poland’s financial market
