Warsaw-listed state-controlled Polish insurer PZU has signed a letter of intent with Bank Pekao – Poland’s second-largest lender by assets – to sell its stake in Alior Bank, the insurance giant said on December 2.

PZU holds nearly 32% of Alior Bank, valuing the transaction at an estimated PLN3.8bn (€820mn). The sale, which PZU expects to finalise in the first half of 2025, is an element of PZU’s strategy for 2025-2027, which assumes simplification of the company’s structure and a stronger focus on key growth areas.

PZU also holds a 20% stake in Bank Pekao, which is thus indirectly state-controlled as well.

"Having two competing banks where we are involved as a capital investor is not the optimal solution," said PZU CEO Artur Olech, as quoted by newspaper Puls Biznesu.

"We want … the management boards of [Alior and Pekao] to focus on their respective businesses and generate value for shareholders. This is a cash transaction, and we have no plans to increase our stake in Pekao," Olech also said.

PZU hopes that selling the stake in Alior Bank will allow PZU to free up capital for its core operations, including bancassurance, embedded insurance, healthcare and financing Poland’s energy transition, the insurer also said, according to Puls Biznesu.

PZU’s stock price rose nearly 3.1% to PLN45.56 on the Warsaw Stock Exchange on December 2.

Pekao’s stock price jumped 5.3% to PLN142.9, while Alior gained 1.14% to PLN92.34.