Eastern Europe's largest insurer PZU may issue subordinated debt before the end of the year if it secures the approval of the Polish financial watchdog KNF, the group's deputy head and board member said on Thursday.

"In the next two weeks we will know if we can do that (issue subordinated bond). And if KNF accepts our interpretation we will go ahead with the issue already this year," Przemyslaw Dabrowski told reporters.

After issuing 500 million euros worth of senior debt earlier this year, Poland's state-run PZU is in talks with KNF watchdog over a planned subordinated debt issue worth up to 3 billion zlotys (USD 907 million). Read the full story POLAND's PZU says may issue subordinated debt by year-end