(Martin Vojta) Česká pojišťovna, the largest domestic insurance company, posted a CAS 1997 net profit of CZK 468 mil., up from a loss of CZK 5.2 bil. in 1996. The insurer is currently managed by PPF and IPB. These two financial groups also have an option (expiring this year) to buy a 14% stake in ČP from ČSOB; achievement of 1997 profit was one of the option’s conditions and so this result paves way for the execution of the option. Should PPF and IPB buy the ČSOB stake, they would achieve a majority in the insurer, thus leaving the state (30% stake) and KB (10%) only minority shareholders. The stock is illiquid and our rating is sell.