STA, 18 August 2020 - Slovenia's leading insurance group, Triglav, has reported EUR 33.5 million in net profit for the first half of 2020, a 3% decrease year-on-year. The group posted a total of EUR 673.4 million in consolidated gross written premium, up 7% compared to the same period in 2019, said insurer Zavarovalnica Triglav on Tuesday.

The group's net revenue earned from insurance premiums increased by 7% to EUR 523.1 million. The group generated EUR 40.6 million in profit before tax, 3% down year-on-year.

Net underwriting expenses amounted to EUR 338.3 million, up 2% compared to the first half of 2019. Average premium growth was meanwhile 4% in Slovenia and 8% in markets abroad. Growth was recorded in all three insurance segments; 17% increase in health insurance, 6% in non-life insurance and 3% in life and pension insurance.

"In the first half of the year, premium income recorded growth, whereas the generated profit was adversely affected by the deteriorating situation in global financial markets and partly by major CAT and other one-off events. The pandemic has radically changed the way we do business and we have adapted effectively to this situation," said chairman Andrej Slapar as quoted in the unaudited report.

Profit before tax from underwriting activities amounted to EUR 34.6 million, 3% up year-on-year, and the part earned from financial investments totalled EUR 5.3 million, a decrease of 17% year-on-year.

"Broken down by insurance segment, 85% of total profit (vs. 89% last year) was generated by the non-life insurance segment. In addition to good results from premium income, it was influenced by lower rates of return on investment and the creation of additional provisions."

The pandemic and its financial ramifications prompted a lower return on Triglav's investment portfolio worth EUR 3.3 billion. "Its value decreased by 5% in the first quarter of 2020, and at the end of the second quarter it returned to approximately the same value as at the end of 2019."

The volume of assets under management in the group's mutual funds decreased by 4% to EUR 979.4 million compared to the 2019 year-end, while discretionary mandate assets stayed roughly level at EUR 82.5 million.

Meanwhile, the consolidated gross written premium of Zavarovalnica Triglav grew by 4% to EUR 399.9 million and net revenue from premiums increased by 2% to EUR 283.2 million.

Profit before tax was down by 4% to EUR 31.6 million and net profit decreased by 4% as well to EUR 26.4 million. Net underwriting expenses were up by 3% to EUR 187.8 million.

Owing to the precarious situation in the financial markets, triggered by the pandemic, the group cannot make any sure projections on profit figures at the end of the year. According to Slapar, the profit before tax was planned between EUR 95 million and 105 million and based on the April assessment the annual profit before tax will likely decline by 10-25% compared to the planned figures.

The annual written premium and the combined ratio of the group are meanwhile forecast to be within the planned figures - around EUR 1.2 billion and below 95%, respectively.

Zavarovalnica Triglav supervisors also appointed Andrej Andoljšek chief supervisor today.

STA, 22 April 2020 - Slovenia's leading insurance group, Triglav, expects the coronavirus pandemic to slash its profit by at least 10% and premiums by 5% this year. It says though its business is sound enough to cope with the situation successfully.

Triglav Group had initially projected a pre-tax profit of between EUR 95 million and EUR 105 million for this year, however, new calculations show the figure could be 10-25% lower.

The insurance premiums collected, initially projected at around EUR 1.2 billion, were to be 3-5% lower as a result of the pandemic and its impact on the economy and international financial markets.

The company made the impact assessment based on the projected contraction in GDP and various scenarios of how long the stall in economic activity may last and how quick recovery once pandemic measures are relaxed. It expects gradual easing of the situation by the end of 2020.

The projected deterioration of the economic situation and the suspended activity in the manufacturing and service sectors in Slovenia and the region will impact the group's underwriting activities.

In its release with the Ljubljana Stock Exchange on Wednesday, the company estimates that primarily the written premium and claims result of the non-life insurance segment will be affected.

Motor vehicle insurance premiums are also expected to be affected by lower sales of new vehicles, deregistration of existing vehicles and lower coverage.

Slowed economic activity is to suppress life insurance premium and premium written in real property insurance, credit insurance and general liability insurance; lower demand is expected for travel insurance.

Lower net claims incurred are anticipated for some insurance classes due to reduced economic activity and movement restrictions.

Financial market shocks, particularly changes in credit spreads on government and corporate bonds, will affect not only the return on investment but also the market value of Triglav assets and liabilities and thus the capital adequacy ratio.

The decrease in the market value and thus the amount of financial assets under management will also be reflected in lower income from the management of clients' assets.

However, the insurer assesses that its insurance and investment portfolios are sufficiently resilient and that its capital position appropriate to effectively cope with increased risks arising from the Covid-19 pandemic.

The company expects it will be able to assess the impact on this year's operations with a higher degree of certainty at the end of the second quarter, on which basis it will revise the annual business plan for 2020.

STA, 15 May 2019 - The group around the insurance company Zavarovalnica Triglav posted a pre-tax profit of EUR 29.9 million in the first quarter of 2019, up 8% year-on-year, while also recording the same growth rate in consolidated gross premiums, which amounted to EUR 317 million, shows the unaudited quarterly report released on Wednesday.

The report says that the group's premium growth on most of its markets exceeded the growth of the markets as a whole.

In Slovenia, where the group collects 76% of consolidated premiums, the average premium growth stood at 6% (compared to the market growth of 5%) and 10% in the markets outside Slovenia.

In terms of individual insurance segments, premium growth was recorded in all non-life insurance classes, the company said.

In the life and pension insurance segments, premium declined by 2% compared with the same period last year, while health insurance premium increased by 20%.

Gross claims paid by the group totalled EUR 166 million, down by 3% compared to the first quarter of 2018, while net claims incurred were at the expected level, up by 6% compared to last year.

At the end of the first quarter, the group's financial investments totalled EUR 3.2 billion.

Commenting on the results, chairman Andrej Slapar said the company was pleased with the performance, adding that it "pursues the set strategy to become a modern, innovative and dynamic insurance and financial group".

STA, 4 March 2019 - The Slovenian insurance group Triglav collected EUR 1.07bn in insurance premiums last year or 7% more than in 2017, to increase its net profit by 16% to EUR 80.8m, according to an unaudited report published on Monday.

Premium growth was recorded in all insurance markets and segments, the report says, noting that the group's pre-tax profit was up 15% to EUR 97.5m.

The parent company Zavarovalnica Triglav posted a net profit of EUR 65.5m last year, up 5% year-on-year, while pre-tax profit amounted to EUR 78.5m, or 6% more than in 2017.

STA, 4 January -2019  A company controlled by a joint venture of the insurer Zavarovalnica Triglav and the German asset management firm KGAL has published a takeover intent for the Nama department store in the centre of Ljubljana, one of the capital's landmarks.

The financial services company Ljubljanica, which is owned by Trigav, has informed the securities market and competition watchdogs about the takeover intent, which was published in the newspaper Delo on Friday.

A takeover bid for the department store, which has been unsuccessfully on sale for years, is expected to be published 10 to 30 days after the intent.

The largest owners of Nama - Zavarovalnica Triglav, its asset management arm Triglav Skladi and the fellow insurer Adriatic Slovenica - tried to sell it already in 2016 and 2017, but did not receive any binding bids.

Nama, which was opened in 1946 as the first department store in Slovenia, generated EUR 10.8m in net sales revenue in the first nine months of 2018, which is 2.6% less than in the same period in 2017 and 1.5% below plans.

It posted a net loss of EUR 147,000 in the first nine months of last year after finishing the same period in 2017 with a net profit of EUR 210,000.

STA, 17 August 2018 - Slovenia's leading insurance group, Triglav, posted a net profit of EUR 30m in the first half of the year, a drop of 17% compared to the same period last year, while consolidated gross written premiums rose by 5% to EUR 574.8m.