Financial Standing of the Triglav Group and Zavarovalnica Triglav

  • As at the reporting date, balance sheet total rose by 7% compared to the previous year, whilst total equity capital grew by 2%.
  • Financial assets of the Triglav Group went up by 10%.
  • A 2% lower total equity capital of Zavarovalnica was primarily a result of higher dividend payments and reduced fair value reserve.

Equity and liabilities

Compared to 2014, the total equity capital of the Triglav Group slightly increased by 2% or EUR 704.0 million in nominal terms. The share of equity in total liabilities decreased by 0.8 percentage point, from 21.0% to 20.2%. Equity attributable to the controlling company rose by 2% to EUR 692.9 million, while the non-controlling interest holders had 65% higher share or EUR 11.1 million (this change resulted foremost from the non-controlling interest in Skupna pokojninska družba). The share capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary shares. 

As a result of a decrease in the value of available-for-sale financial assets, fair value reserve went down by 18% to EUR 77.6 million nominally. Share premium fell by 3%, amounting to EUR 55.0 million. 

Reserves from profit remained approximately at the same level as the year before (index 100), reaching EUR 300.9 million. They include legal and statutory reserves in the amount of EUR 20.4 million, contingency reserves of EUR 0.6 million, other reserves from profit of EUR 246.7 million and credit risk equalisation reserves. The latter increased by EUR 0.8 million and amounted to EUR 33.3 million.

Accumulated profit grew by 19% to EUR 190.3 million in nominal terms. In addition to the net profit for the year, accumulated profit also includes EUR 104.5 million of net profit brought forward (index 108). Net profit brought forward decreased by EUR 56.8 million due to the dividend payments and by EUR 262 thousand due to the allocation to reserves from profit and increased by EUR 64.8 million as a result of transferring net profit from the previous year. Net profit for the year disclosed in the balance sheet totalled EUR 85.8 million (index 137), which was EUR 1.0 million less than net profit disclosed in the income statement. The Group formed reserves for credit risks and catastrophe claims of EUR 850 thousand and allocated EUR 103 thousand of net profit to reserves from profit. 

Compared to the preceding year, subordinated liabilities decreased by 33% due to the acquisition of treasury bonds on the official market (see Section Financial standing of the Triglav Group and Zavarovalnica Triglav – Assets  for more details), accounting for 0.5% of total liabilities or EUR 18.8 million in nominal terms.

On the liabilities side, gross insurance technical provisions went up by 11% to EUR 2,600.4 million. In total liabilities, their share increased by 3.2 percentage points, from 71.2% to 74.4%. Mathematical provisions increased by 19% and amounted to EUR 1,676.8 million, whilst claims provisions were 1% lower. Provisions for gross unearned premiums and other insurance technical provisions increased by 2% and 12% respectively. Insurance technical provisions of the Triglav Group are discussed in greater detail under Section Risk equalisation.

Other financial liabilities as at the 2015 year-end totalled EUR 3.8 million and were 75% below the figure reported one year earlier as a result of debt repayment arising from the financial lease of Triglav Osiguranje, Zagreb and the transfer of the Avrigo Group to non-current assets held for sale. Their share accounted for 0.1% of total liabilities.

Operating liabilities as at 31 December 2015 were 17% below the figure reported one year earlier and amounted to EUR 48.4 million, accounting for 1.4% of total liabilities. Liabilities from direct insurance operations rose by 6% to EUR 16.6 million, whilst liabilities from co-insurance and reinsurance operations went down by 23% and reached EUR 28.1 million. Current tax liabilities equalled EUR 3.7 million, which represented a 43% decrease compared to 2014.

Employee benefits remained at approximately the same level as at the 2014 year-end (index 100), amounting to EUR 12.2 million. Other provisions decreased by 2% and totalled EUR 3.9 million. Deferred tax liabilities decreased by 25% to EUR 23.2 million, which was mainly due to lower liabilities as a result of reduced fair value reserve from financial investments.

As at 31 December 2015, other liabilities were 1% higher and stood at EUR 66.3 million, representing a 1.9% share of total liabilities. 

Liabilities arising from non-current assets held for sale amounted to EUR 12.4 million (index 32). As at the reporting date, they included the liabilities of the Avrigo Group, whereas in 2014 they included the liabilities of Triglav Pojišt'ovna.

Assets

Financial assets as at the 2015 year-end totalled EUR 2,873.4 million and were 10% above the figure reported one year earlier. Their share accounted for 82.3% of total assets (an increase of 2.3 percentage points). Unit-linked insurance assets amounted to EUR 464.7 million and financial investments to EUR 2,408.7 million. The bulk of financial assets was accounted for by available-for-sale financial assets, which totalled EUR 1,607.7 million. In total financial investments, EUR 183.9 million was accounted for by deposits and loans, EUR 242.4 million by investments held to maturity and EUR 374.7 million by investments recognised at fair value through profit/loss. The structure of financial assets is discussed in greater detail under Section Structure of financial investments – the Triglav Group.

The Triglav Group’s financial investments in associates were 33% lower, primarily as a result of a higher stake in Skupna pokojninska družba and its reclassification from an associate into a subsidiary of Zavarovalnica Triglav. Financial investments in associates amounted to EUR 6.9 million, accounting for a 0.2% share of total financial assets. 

Investment property declined by 24% and totalled EUR 79.5 million (for details see Section Structure of financial investments – the Triglav Group). Their share in total assets accounted for 2.3% (3.2% in 2014).

Receivables stood at EUR 166.4 million, which was 8% less compared to the preceding year. They accounted for 4.8% of total assets, of which receivables from direct insurance operations accounted for the bulk, totalling EUR 83.2 million (index 96). Receivables from co-insurance and reinsurance operations reached EUR 42.8 million (index 103), other receivables stood at EUR 40.1 million (index 77) and current tax receivables equalled EUR 301 thousand (EUR 1.8 million in 2014). 

Compared to 2014, insurance technical provisions transferred to reinsurance contracts dropped by 3% to EUR 68.7 million nominally. Assets from reinsurance contracts from claim provisions were 8% lower and totalled EUR 51.0 million, while those from unearned premiums grew by 14% to EUR 17.7 million.

Property, plant and equipment totalled EUR 121.8 million (index 98), representing 3.5% of total assets. Intangible assets equalled EUR 70.1 million (index 98), accounting for 2.0% of total assets.

Cash and cash equivalents equalled EUR 47.9 million (index 210), whilst other assets totalled EUR 8.1 million (index 96). Compared to the 2014 year-end, deferred tax assets decreased by 22% and stood at EUR 16.0 million. 

Non-current assets held for sale equalled EUR 34.4 million. Since the Avrigo Group is in the process of selling, all assets and liabilities of that company were (in accordance with accounting standards) categorised as non-current assets held for sale and disclosed as separate items in the statement of financial position. In 2014, non-current assets held for sale amounted to EUR 40.6 million due to the sale of Triglav Pojišt'ovna.

Balance sheet of the Triglav Group as at 31 December 2015 – according to IFRS  

 

 



 

in EUR 

 

31 December 2015

31 December 2014

Index

2015 structure

2014 structure

ASSETS

3,493,456,800

3,275,428,004

107

100.0%

100.0%

Intangible assets

70,132,332

71,770,468

98

2.0%

2.2%

Property, plant and equipment

121,810,360

123,668,545

98

3.5%

3.8%

Deferred tax assets

15,993,688

20,472,194

78

0.5%

0.6%

Investment property

79,475,283

104,861,479

76

2.3%

3.2%

Investments in associates

6,939,700

10,371,335

67

0.2%

0.3%

Financial assets

2,873,436,783

2,619,376,329

110

82.3%

80.0%

 Financial investments:

2,408,702,860

2,153,588,590

112

68.9%

65.7%

- loans and deposits

183,872,219

130,037,423

141

5.3%

4.0%

- held to maturity

242,406,400

210,604,128

115

6.9%

6.4%

- available for sale

1,607,681,638

1,608,664,995

100

46.0%

49.1%

- recognised at fair value through profit and loss

374,742,603

204,282,044

183

10.7%

6.2%

Unit-linked insurance assets

464,733,923

465,787,739

100

13.3%

14.2%

Reinsurers’ share of insurance technical provisions

68,724,305

71,147,717

97

2.0%

2.2%

Receivables

166,443,733

181,810,510

92

4.8%

5.6%

- receivables from direct insurance operations

83,249,006

86,414,518

96

2.4%

2.6%

- receivables from reinsurance and co-insurance operations

42,823,668

41,461,923

103

1.2%

1.3%

- current tax receivables

301,273

1,819,015

17

0.0%

0.1%

- other receivables

40,069,786

52,115,054

77

1.1%

1.6%

Other assets

8,134,762

8,469,465

96

0.2%

0.3%

Cash and cash equivalents

47,928,768

22,858,388

210

1.4%

0.7%

Non-current assets held for sale

34,437,086

40,621,574

85

1.0%

1.2%


 

 

 

 

 

EQUITY AND LIABILITIES

3,493,456,800

3,275,428,004

107

100.0%

100.0%

Equity

704,044,499

688,140,772

102

20.2%

21.0%

Controlling interests

692,925,865

681,412,162

102

19.8%

20.8%

 - share capital

73,701,392

73,701,392

100

2.1%

2.3%

 - share premium

54,955,912

56,908,216

97

1.6%

1.7%

 - reserves from profit

300,945,466

299,731,040

100

8.6%

9.2%

 - treasury share reserves

452,880

452,880

100

0.0%

0.0%

 - treasury shares

-452,880

-452,880

100

0.0%

0.0%

 - fair value reserve

77,567,319

94,940,028

82

2.2%

2.9%

 - net profit/loss brought forward

104,503,874

96,705,983

108

3.0%

3.0%

 - net profit/loss for the year

85,802,552

62,769,801

137

2.5%

1.9%

 - currency translation differences

-4,510,483

-4,558,557

99

-0.1%

-0.1%

 - reserve of disposal group held for sale

-40,167

1,214,258

 

0.0%

0.0%

Non-controlling interests

11,118,634

6,728,610

165

0.3%

0.2%

Subordinated liabilities

18,752,252

28,065,416

67

0.5%

0.9%

Insurance technical provisions

2,143,395,211

1,874,756,014

114

61.4%

57.2%

- unearned premiums

252,057,956

245,995,733

102

7.2%

7.5%

- mathematical provisions

1,219,737,727

954,072,939

128

34.9%

29.1%

- claims provisions

642,687,051

648,827,459

99

18.4%

19.8%

- other insurance technical provisions

28,912,477

25,859,883

112

0.8%

0.8%

Insurance technical provisions for unit-linked insurance contracts

457,046,912

458,899,160

100

13.1%

14.0%

Employee benefits

12,225,131

12,265,582

100

0.3%

0.4%

Other provisions

3,854,844

3,946,874

98

0.1%

0.1%

Deferred tax liabilities

23,188,796

30,752,195

75

0.7%

0.9%

Other financial liabilities

3,784,282

15,084,019

25

0.1%

0.5%

Operating liabilities

48,388,725

58,533,223

83

1.4%

1.8%

- liabilities from direct insurance operations

16,617,928

15,644,384

106

0.5%

0.5%

- liabilities from reinsurance and co-insurance operations

28,053,630

36,341,671

77

0.8%

1.1%

- current tax liabilities

3,717,167

6,547,168

57

0.1%

0.2%

Other liabilities

66,341,975

65,641,718

101

1.9%

2.0%

Liabilities arising from long-term assets held for sale

12,434,173

39,343,031

32

0.4%

1.2%

Financial position ratios of the Triglav Group

Financial position ratios

2015

2014

2013

The portion of equity in total liabilities

20.2%

21.0%

19.2%

Average equity balance as % of gross written premium

64.7%

64.7%

64.7%

Return on equity

12.8%

13.4%

12.0%

Share of gross insurance technical provisions in total liabilities

74.4%

71.2%

73.5%

Average balance of gross insurance technical provisions as % of gross written premium

253.5%

253.5%

253.5%

Financial assets to total assests ratio

82.3%

80.0%

79.0%

Financial assets to gross insurance technical provisions ratio

110.5%

112.2%

107.6%

 

The total balance sheet of Zavarovalnica Triglav as at the reporting date amounted to EUR 2,685.4 million or 1% less compared to the 2014.

Equity and liabilities

The total equity capital as at the 2015 year-end was EUR 530.6 million, which was 2% less than one year earlier, predominantly as a result of higher dividend payments and reduced fair value reserve. The share of equity in the balance sheet total dropped by 0.2 percentage point, from 20.0% to 19.8%. The share capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary registered no-par value shares. 

As a result of a decrease in the value of available-for-sale financial assets, fair value reserve went down by 24% to EUR 55.8 million nominally. Share premium remained unchanged, amounting to EUR 53.4 million, whilst reserves from profit totalled EUR 282.7 million and remained at a level approximately equal to 2014 (index 100). The latter include legal and statutory reserves in the amount of EUR 4.7 million, other reserves from profit of EUR 246.7 million, which remained unchanged, and credit risk equalisation reserves of EUR 31.3 million, having increased by 2%. Accumulated profit grew by 5%, amounting to EUR 65.0 million. In addition to EUR 57.8 million (index 250) in net profit for the year, it includes EUR 7.2 million of net profit brought forward (index 19). Net profit brought forward was lower due to the dividend payments of EUR 56.8 million (EUR 38.6 million in 2014). 

Compared to the preceding year, net subordinated liabilities in the amount of EUR 21.1 million fell by 30% due to the acquisition of treasury bonds on the official market. In 2015, Zavarovalnica Triglav purchased ZT02 bonds of EUR 8.9 million at the weighted price of 115.17%. In accordance with International Financial Reporting Standards, treasury bonds shall be revalued at amortised cost and liabilities disclosed at net value. Thus, an additional loss of EUR 1.4 million was generated in revaluation. Subordinated liabilities accounted for 0.8% of the balance sheet total.

On the liabilities side, gross insurance technical provisions totalled EUR 2,053.9 million and remained at a level approximately equal to 2014 (index 100). In total liabilities, their share increased by 0.8 percentage point, from 75.7% to 76.5%. As at 31 December 2015, mathematical provisions amounted to EUR 1,364.3 million, which represented an increase of 1% over the end of the previous year. Provisions for gross unearned premiums and gross claims provisions shrunk by 1% and 4% respectively. Other insurance technical provisions went up by 12%. Insurance technical provisions are discussed in greater detail under Section Risk equalisation – Zavarovalnica Triglav.

Other financial liabilities, accounting for only 0.1% of total liabilities, amounted to EUR 1.8 million. Compared to 2014, they were 3% higher, mainly due to unpaid dividends for 2014. 

Operating liabilities as at 31 December 2015 were 8% below the figure reported one year earlier. With EUR 23.9 million, they accounted for 0.9% of total balance sheet liabilities, the same as at the 2014 year-end. Liabilities from direct insurance operations went up by 3% and amounted to EUR 11.0 million. Liabilities from co-insurance and reinsurance operations totalled EUR 10.3 million, having decreased by 1%. Current tax liabilities equalled EUR 2.6 million (index 55).

Employee benefits totalled EUR 9.2 million (index 98), whilst other provisions amounted to EUR 382 thousand (index 96). Deferred tax liabilities decreased by 52%, which was mainly due to lower liabilities as a result of reduced fair value reserve from financial investments, totalling EUR 6.3 million.  

Other liabilities grew by 4% to EUR 38.4 million nominally and accounted for 1.4% of total liabilities. 

Assets

Financial assets equalled EUR 2,194.4 million, having decreased by 2% compared to the 2014 year-end. Their share in total assets was 0.6 percentage point lower and accounted for 81.7%. Unit-linked insurance assets amounted to EUR 446.6 million and financial investments to EUR 1,747.9 million. In total financial investments, EUR 108.6 million was accounted for by deposits and loans, EUR 178.3 million by investments held to maturity, EUR 1,268.3 million by investments available for sale and EUR 192.7 million by investments recognised at fair value through profit/loss. The structure of financial assets is discussed in greater detail under Section Structure of financial investments – Zavarovalnica Triglav.

Financial investments in subsidiaries and associates fell by 2%, amounting to EUR 141.9 million and accounting for a 5.3% share. Financial investments in the Group’s subsidiaries grew by 1% to EUR 134.7 million. They were affected by various factors, such as the merger of Triglav Naložbe and its subsidiaries with the parent company, the acquisition of Skupna pokojninska družba, the capital increase in individual subsidiaries and impairments based on valuation of the Group’s subsidiaries. Financial investments in associates amounted to EUR 7.3 million, having decreased by 30% as a result of the acquisition of Skupna pokojninska družba, whose equity stake was disclosed as an associate until last year.

Investment property rose by 39% and totalled EUR 52.9 million. Its share in total assets grew by 0.6 percentage point, accounting for 2.0% (for details see Section Structure of financial investments – Zavarovalnica Triglav).

As at the reporting date, receivables stood at EUR 95.7 million, representing a 1% increase over the preceding year. They accounted for 3.6% of total assets, of which receivables from direct insurance operations accounted for the bulk, totalling EUR 58.0 million (index 94). Receivables from reinsurance and co-insurance operations reached EUR 12.2 million (index 183), whereas other receivables totalled EUR 25.5 million (index 96). Deferred tax assets were not formed. 

Compared to 2014, insurance technical provisions transferred to reinsurance contracts fell by 7% to EUR 69.9 million nominally. Assets from reinsurance contracts from claim provisions were 11% lower and totalled EUR 54.6 million, while those from unearned premiums grew by 9% and equalled EUR 15.4 million.

Property, plant and equipment totalled EUR 67.0 million (index 103), representing 2.5% of total assets. Intangible assets equalled EUR 53.1 million (index 98), accounting for 2.0% of total assets.

Cash and cash equivalents increased to EUR 7.5 million (index 134), whilst other assets totalled EUR 2.8 million (index 81). 

Balance sheet of Zavarovalnica Triglav as at 31 December 2005 – according to IFRS  

 

31 December 2015

31 December 2014

Index

Structure 2015

Structure 2014

ASSETS

2,685,432,591

2,721,266,953

99

100.0%

100.0%

Intangible assets

53,143,644

54,373,723

98

2.0%

2.0%

Property, plant and equipment

67,034,994

65,143,015

103

2.5%

2.4%

Investment property

52,870,808

37,972,457

139

2.0%

1.4%

Investments in subsidiaries

134,689,036

133,799,163

101

5.0%

4.9%

Investments in associates

7,259,875

10,427,236

70

0.3%

0.4%

Financial assets

2,194,440,477

2,240,384,295

98

81.7%

82.3%

 Financial investments:

1,747,850,917

1,790,581,524

98

65.1%

65.8%

- loans and deposits

108,581,746

104,531,182

104

4.0%

3.8%

- held to maturity

178,250,255

186,136,258

96

6.6%

6.8%

- available for sale

1,268,278,321

1,299,415,075

98

47.2%

47.8%

- recognised at fair value through profit and loss

192,740,593

200,499,010

96

7.2%

7.4%

Unit-linked insurance assets

446,589,561

449,802,771

99

16.6%

16.5%

Reinsurers’ share of insurance technical provisions

69,935,394

75,325,350

93

2.6%

2.8%

Receivables

95,716,726

94,732,452

101

3.6%

3.5%

- receivables from direct insurance operations

57,959,013

61,527,739

94

2.2%

2.3%

- receivables from reinsurance and co-insurance operations

12,219,198

6,689,625

183

0.5%

0.2%

- other receivables

25,538,515

26,515,088

96

1.0%

1.0%

Other assets

2,791,679

3,458,593

81

0.1%

0.1%

Cash and cash equivalents

7,549,958

5,650,669

134

0.3%

0.2%







EQUITY AND LIABILITIES

2,685,432,591

2,721,266,953

99

100.0%

100.0%

Equity

530,560,272

544,000,467

98

19.8%

20.0%

- share capital

73,701,392

73,701,392

100

2.7%

2.7%

- share premium

53,412,884

53,412,884

100

2.0%

2.0%

- reserves from profit

282,666,281

281,977,925

100

10.5%

10.4%

- fair value reserve

55,751,443

73,221,229

76

2.1%

2.7%

- net profit/loss brought forward

7,210,810

38,565,461

19

0.3%

1.4%

- net profit/loss for the year

57,817,462

23,121,575

250

2.2%

0.8%

Subordinated liabilities

21,101,278

29,958,540

70

0.8%

1.1%

Insurance technical provisions

1,614,944,129

1,617,090,395

100

60.1%

59.4%

- unearned premiums

180,558,991

182,902,536

99

6.7%

6.7%

- mathematical provisions

925,402,898

904,858,200

102

34.5%

33.3%

- claims provisions

486,247,722

508,999,132

96

18.1%

18.7%

- other insurance technical provisions

22,734,518

20,330,526

112

0.8%

0.7%

Insurance technical provisions for unit-linked insurance contracts

438,920,157

442,952,449

99

16.3%

16.3%

Employee benefits

9,189,038

9,408,654

98

0.3%

0.3%

Other provisions

381,762

399,080

96

0.0%

0.0%

Deferred tax liabilities

6,268,154

12,973,041

48

0.2%

0.5%

Other financial liabilities

1,752,990

1,693,912

103

0.1%

0.1%

Operating liabilities

23,886,713

25,833,367

92

0.9%

0.9%

- liabilities from direct insurance operations

10,985,581

10,631,799

103

0.4%

0.4%

- liabilities from reinsurance and co-insurance operations

10,264,596

10,406,511

99

0.4%

0.4%

- current tax liabilities

2,636,536

4,795,056

55

0.1%

0.2%

Other liabilities

38,428,098

36,957,048

104

1.4%

1.4%