Premium growth and profit higher than planned

The profitability, financial stability and capital adequacy of the Triglav Group remain high. Progress has been made in all insurance markets.

“The past year has been successful,” said the President of the Management Board of Zavarovalnica Triglav Andrej Slapar and continued: “The consolidated profit before tax at year-end was even higher than planned. For the second year in a row, the Group recorded premium growth; the combined ratio in non-life insurance in 2016 was better than expected. We are pleased that our credit rating has been upgraded from “A–“ to “A”. The mid-term outlook is stable. These results prove that the Group has maintained a high level of profitability, financial stability and capital adequacy.”

Opportunities for further growth

In 2016, the Triglav Group further consolidated its market position in the region. In its largest market in Slovenia, the Group's leading market share has increased to 36.2%. Market share increases have also been recorded in all major markets outside Slovenia where the Group sees the greatest opportunities for further growth and developments. The first man of the Triglav Group Andrej Slapar stressed the satisfaction over the fact that the macroeconomic conditions in these markets continue to improve. »We have been present in markets in the region for a long time and we know them well. This is an advantage, allowing us to develop our products and services efficiently and tailor them to the specificities of each individual market.”

In markets outside Slovenia, the Group continued with the development of sales channels, the strengthening of sales through the own sales network and the use of alternative sales channels, particularly the banking channel. It has started marketing health insurance and continued with the transfer of good practices and products. The new range of insurance products that include assistance services brings a clear added value for customers. In the region, this range is for now available in the area of motor vehicle insurance.

In the Slovene market, additional health insurance products have been launched and the Group has achieved great success in the segment of voluntary pension insurance, where the parent company has tripled the number of new customers. The range of life insurance products has been consolidated and partly overhauled. Like in other markets, insurance services have also been complemented with assistance services in the Slovene market; such assistance services have been extended to several segments of non-life insurance and health insurance.

»The year 2017 marks the beginning of a new four-year strategic period for the Triglav Group. We are kicking off very proactively and are fully committed to implementing our new vision,”a says Andrej Slapar. “We are embarking on a path of the dynamic development of new business models with great determination while also maintaining the focus on the profitability and safety of operations.”  

Financial strength and positive premium trends in all markets

Financial strength and positive premium trends in all markets


Uroš Ivanc, Member of the Management Board and CFO, explained the details of the performance in 2016: “The good performance is the result of our customer focus, our favourable market position in the region and efficient investment management in a time when capital market conditions are quite demanding. The Group ended the year 2016 with a profit before tax of EUR 95 million; the return on equity amounted to 11.4%. The Group has successfully maintained its target capital strength, the total capital of the Group has increased by 6% while gross insurance technical provisions, which are the guarantee for the long-term security of our policyholders, have gone up by 2%.”

Consolidated gross insurance and co-insurance premium

The Group has performed well in insurance, having booked EUR 936 million of consolidated gross insurance and co-insurance premium, well over the planned value of around EUR 900 million. We have recorded a 2% premium growth rate and are seeing positive premium trends in all insurance markets of the Triglav Group. The combined ratio in non-life and health insurance of the Triglav Group remains at a favourable level, standing at 92.9%.

A comparison with the development of the entire insurance market in Slovenia shows that the 2% premium growth rate posted by the Triglav Group is 0.5 percentage points above the market growth rate. Outside Slovenia, the Group recorded an impressive average premium growth rate of 9%, taking into account the sales of the Czech insurance company in the year-on-year comparison.

In terms of the development of consolidated premium, the premium of non-life insurance has increased by 3.5%, taking into account the sales of the Czech insurance company in the year-on-year comparison. In spite of the high number of maturities of insurance policies, the life insurance premium remained at the same level as in 2015. The health insurance premium has gone up by 5%.

Insurance performance can be significantly affected by large-scale mass loss events such as floods, hail and storms. In 2016, the number of such events was comparable to the long-term average.

The returns on the Group's financial investments (excluding the return on unit-linked insurance contract investments) were 27% lower than in 2015, which is better than expected.

Uroš Ivanc went on to stress that the Triglav Group has been pursuing an investment policy aimed primarily at ensuring the appropriate security and liquidity of investment, with profitability featuring as the second-ranked criterion. This approach to investment will be maintained in the future.

The combined ratio in non-life insurance of the Triglav Group in the 2010–2016 period