The Polish government on Friday struck an agreement with Eureko, the Dutch insurance company, ending a decade-long dispute over control of Poland’s largest insurer, in return for compensation of €1.1bn ($1.6bn).

Eureko will sell part of its 33 per cent shareholding of PZU, drop its claims to purchasing an additional 21 per cent of PZU that had been promised it by previous governments, and abandon its international arbitration case against the government, which owns 55 per cent of PZU.