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PZU to allocate at least 50% of profit for dividend payments

plans to earmark at least50% of its annual profit for dividend payments under a new capital and dividendpolicy spanning until 2020.

The sizeof the dividend will be based on the group's consolidated net profitattributable to the parent company and could reach 100%. No more than 20% of agiven year's profit will be retained to finance organic growth and innovationand to pursue growth initiatives, and no more than 30% will be retained to fundpotential M&A deals and other activities under the insurer's .

Thecompany will also target ROE of at least 18%, seek to maintain its Solvency IIratio at 200% and keep its financial leverage ratio to no higher than 35%,assuming it does not carry out a rights issue during the horizon of thestrategy.

PZUCEO Michal Krupinski said the company could earmark virtually its entire 2016profit for dividend payments, news agency PAP reported the same day. He alsoreportedly said PZU's per-share dividend is expected to grow in the comingyears and that dividend levels will not be affected by M&A the insurer is working on,which will be financed from surplus capital.