- The Triglav Group maintained strong capital strength and liquidity, which was confirmed by the re-affirmed "A" credit ratings with a stable medium-term outlook.
- Increased risks due to extreme weather events, macroeconomic conditions with inflationary trends and the situation on the financial markets were actively managed. Special attention was focused on supplemental health insurance and its regulation by the government.
- Prudent underwriting of underwriting risks continued. Market risks were kept within target levels. The planned asset-liability matching and adequate diversification of investments were pursued.
- Development activities focused on upgrading sustainability risk and information security risk management systems.
Capital adequacy of the Triglav Group and Zavarovalnica Triglav
| Triglav Group | Zavarovalnica Triglav | ||
| 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
Available own funds (EUR million) | 943.2 | 932.9 | 964.0 | 930.1 |
SCR (EUR million) | 471.5 | 466.5 | 396.7 | 374.5 |
Capital adequacy (%) | 200 | 200 | 243 | 248 |
Risk dashboard of Zavarovalnica Triglav and the Triglav Group* as at 31 December 2023
Risk | Risk assessment | Risk trend | Note |
Capital adequacy and capital risk | Low | Stable | In the difficult business environment, the Triglav Group maintained strong capitalisation. The latter is based on effective risk management and quality capital structure, which to a lesser extent includes subordinated liabilities. The Group's adequate capital and financial strength was additionally confirmed by the long-term credit rating of "A" and the financial strength rating of "A" assigned to the Group by the credit rating agencies S&P Global Ratings and AM Best. |
Underwriting risks | Medium | Stable | The Group's underwriting risks were mainly affected by extreme weather events in Slovenia and the surrounding region, together with claims inflation, which still persists, particularly in Slovenia. The impact of inflation on non-life underwriting risks is adequately managed by adjusting covers provided by products and their pricing backed by consistent cost management. The Group maintains premium growth and achieves the target values of indicators in strategic markets. |
Market risks | Medium | Stable | Persistently high inflation resulted in further interest rate rises by central banks, which had a significant impact on financial markets. Nevertheless, the Group continues to maintain risks at defined levels, paying special attention to the matching of assets and liabilities, based on which it defines optimal investment policies. |
Credit risks | Low | Stable | Despite the increased exposure, credit risks remain low. This is ensured through the regular and systematic management of individual exposures across all segments, a review of the adequacy and quality of reinsurance partners and a well-diversified portfolio of partners. The credit risk assessment in 2023 was mainly affected by extreme weather events in Slovenia, which had an impact on the reinsurance part of credit risks. |
Liquidity risk | Low | Stable | The Company's strong liquidity position is maintained by regularly monitoring its liquidity; the Group subsidiaries also have adequate operational liquidity. In the ORSA process, liquidity was checked with stress tests, which confirmed that the Group insurance companies are well prepared for extraordinary events. |
Operational risks | Medium | Stable | The Group proactively manages operational risks. Most attention is paid to regular maintenance and upgrades of outsourcing management and the information security management system, as cyber risks remain among the most relevant. In addition, operational risks are primarily increased by large-scale regulatory changes and the general human resource risk when recruiting workers in shortage occupations. Internal interprocess risks are also managed. |
* An overall assessment of the main risk categories was made on the basis of quarterly risk reports. The risk trend shows a potential assessment of future risks relative to the latest projections.
More details can be found in the Annual Report and the Solvency and Financial Condition Reports: