The Triglav Group and Zavarovalnica Triglav d.d. 2019 Annual Report

Strategy and plans of the Triglav Group

  • Client focus is at the heart of the Triglav Group Strategy until 2022.
  • The Triglav Group is developing into a modern, innovative and dynamic insurance/financial group, which firmly remains the leader both in Slovenia and the wider region.
  • The planned profit level for 2019 was surpassed.
  • In 2020, profit before tax of the Triglav Group is planned at EUR 95–105 million and gross written premium at around EUR 1.2 billion. 
Key strategic guidelines
Long-term stable operations and increased value of the Triglav Group
Client focus and development of related services
Developing cooperative and agile organisation and culture

Implementation of the Triglav Group Strategy in 2019

The objectives set were achieved through various activities aimed at implementing the strategy. The Company was active in numerous areas, such as new product development and the upgrading of existing products, streamlining and optimising work, work processes and business process management, IT support and enhancing digital support. Strategic processes were also pursued in sales promotion and development of even more effective approaches, channels and communication techniques, as well as catering for the needs of the existing and potential clients. In the parent company and in relation to subsidiaries and key external stakeholders, special attention was paid to the building of partnerships, Triglav’s core competence. 

The implementation of the strategy is periodically reviewed and dynamically adapted to changes in the internal and external environments.  In 2019, the strategies of individual Group members were revised, followed by intense activities aimed at deepening the knowledge of the key content of the Group's revised strategy.

The summary of achievements in 2019 in relation to the strategic objectives and key guidelines of the Triglav Group Strategy for the 2019–2022 period shows that the Group’s foundations are sound and that it is driven to achieve the set goals. The Company established good starting points for further strengthening the Group’s competitive position and overcoming the challenges in the near future. 

Long-term stable and profitable operations and increased value of the Triglav Group

Purpose: Creating a more secure future for all stakeholders. Long-term responsible asset management.

  • Profitable operations

Profit before tax: EUR 100.9 million

Return on equity (ROE): 10.9%

  • Growth in business volume

Gross written premium: +11%

Increased overall market share of the Triglav Group on the Slovene insurance market.

  • Increased value of the Triglav Group

High profitability of the parent company’s share was achieved.

Strengthened market position with the management of capital investments: capital increase of subsidiaries, increase in participating interests in the subsidiaries of strategic importance, sale of non-strategic investments, establishment and co-founding of a new company, and integration of the acquired competing company.

Maintained “A” credit rating with stable medium-term outlook.

  • Capital adequacy and optimal capital allocation by segment/subsidiary of the Group

A 30.5-year subordinated bond was issued to achieve the desired optimal capital structure.

Upgraded bases for calculating the efficiency of capital utilisation of individual Group members and segments of the Group's core activities.

  • Comprehensive risk management and introduction of new business models

→ Upgraded the own risk and solvency assessment (ORSA) process with the involvement of subsidiaries.

Communicated and verified the core content of the Group’s strategy and the revised strategies of individual subsidiaries.

Identified key functionalities of an innovative remote business model.

Implementation of new technological solutions (e.g. artificial intelligence in the non-life insurance segment).

  • A high degree of automation, optimisation and cost-effectiveness of business processes

The share of operating expenses of the insurance business in gross written premium lower by 1.3 percentage point.

Controlled and streamlined costs where possible and positive for achieving the strategic objectives.

  • Efficient use of data (internal and external) so as to make the right business decisions

Improved data warehouse functionality and an expanded database for decision-making at various organisational levels.

In-depth knowledge of the specifics of business processes at the Group level and client behaviour.

  • Developed multi-matrix organisation, business productivity growth and utilisation of synergies within the Group

Transfer of best practices, products and services to subsidiaries and adaptation to individual markets.

Increased cooperation and transfer of knowledge, especially sales skills, tools and techniques.

Increased productivity by enhancing cross-selling within the Group.

Fulfilled desired financial effects of entering into new partnerships.

Client focus and development of related services

Purpose: Build and maintain relationships based on trust. Effectively manage the decision-making process. Improve user experience. Achieve client satisfaction and loyalty. Increase client lifetime value.

  • Comprehensive and responsible client relationship management and omni-channel communication

Expanded range of client contact points.

Development of a system for personalised client service and introduction of a rating system based on various criteria.

A redesigned product-sales website and improved user experience.

  • Increased client satisfaction and loyalty

Active measurement and collection of user experience to improve client satisfaction.

Higher overall client satisfaction score.

Rewarding of client loyalty.

  • Growth in the number of active clients, better understanding of the Group’s services and higher insurance coverage of individual clients

Development of new products and services and upgrading of existing ones.

Development of digital sales, communication and distribution channels.

  • Insurance products with a high degree of related services

Establishment of joint digital sales for the non-life, life and health insurance segments.

Upgrading of related services in cooperation with various partners.

  • The digital way of doing business and innovation

Implementation of paperless, mobile and streamlined business operations with clients and partners.

Process optimisation to increase client focus, especially when dealing with loss events.

Developing cooperative and agile organisation and culture

Purpose: Dynamically adapt the organisation to provide responsive, simple and effective services to both internal and external clients. Empower individuals and working groups to design and execute solutions by assuming responsibility. Introduce agility and modern practices at all levels of business.

  • Transformed organisational culture

Transfer of best practices within the Group.

Coaching at the parent company and subsidiaries and training of new in-house coaches.

A strengthened mentoring system, promotion of diversity and intergenerational cooperation.

Establishment of a system of competencies and powers in subsidiaries for responsive and reliable decision-making.

  •  An appropriate number, structure and commitment of employees to revised and optimised processes

Activities carried out to effectively manage changes and strengthen project work or teamwork.

The target level of engagement at the Group level was achieved.

Adaptation of the organisational structure and key processes to dynamic changes in the environment.

  • Adequate competences and digital skills of employees

Strengthening of the management-by-objectives system by conducting periodic development interviews according to the Company’s own methodology.

Adaptation of work processes in an increasingly digitalised environment.

Increasing proportion of digital content training hours.

Ongoing training and coaching of leaders.

  • Stability and appropriate structure of key promising employees and employee mobility

Maintaining stable and adequate occupation of key posts.

Strengthening cooperation and mobility within the Group.

Financial highlights of the Triglav Group business plan for 2020 (in EUR million)

    in EUR million
 2017201820192020 plan
Profit/loss before tax84.497.5100.995–105
Gross written premium form insurance, co-insurance and reinsurance contracts999.91,068.41,184.2around 1,200
Combined ratio93.1%91.8%91.5%below 95%