Dear Shareholders and Readers,

In 2022, we made important development steps and achieved good results that confirm both the robustness of our business model and the flexibility and success of our strategy. We achieved this despite a challenging environment in which we were faced with the effects of the broader geopolitical situation, high inflation growth, an unfavourable situation in international financial markets and the consequences of the COVID-19 pandemic. The Triglav Group was again assigned a high “A” credit rating by the credit rating agencies S&P Global Ratings and AM Best, confirming its sound performance.

The Group generated EUR 134.5 million in consolidated profit before tax, up by 1% over the previous year. A net profit of EUR 110.2 million vas 2% lower compared to last year. The results achieved are above those planned and are the result of good performance and one-off events, especially the partial release of claims provisions from previous years, which mitigated the growth of claims and expenses. In estimating claims provisions, the trends of the best estimate introduced by the new IFRS 17 accounting standard were followed, bringing their amount closer to the estimated value according to IFRS 17. Gains on the disposal of investment property and some equity investments also had a positive impact, whereas total return on the investment portfolio was negative as a result of the unfavourable situation in the financial markets. This, together with the increased dividend payment, reduced equity by 19% to EUR 752.8 million and increased net return on equity to 13.1%. Due to the aforementioned reasons and inflation, the Group’s capital adequacy decreased over the previous year, remaining around the lower end of its target range.

Insurance and asset management

Total revenue rose by 10% to EUR 1,599.3 million, while gross written premium increased by 9% to EUR 1,479.6 million. Premium growth was recorded in all three insurance segments and all our markets. In Slovenia, it reached 7% and was consistent with market trends, while in other markets of the Adria region it stood at 12%. Premium written in the international market based on the principle of free movement of services and inward reinsurance premium grew by 17%. The non-life insurance premium increased by 12%, life and pension insurance premium by 6% and health insurance premium by 3%.

Backed by a larger insurance portfolio, more dynamic activity of households and businesses, and the inflationary rise in the prices of materials and services, gross claims paid grew by 13% to EUR 832.2 million. Major CAT events also contributed to this. Their estimated value of EUR 32.1 million was more than 20% above the five-year average. The Triglav Group’s combined ratio was favourable, standing at 88.1%, primarily as a result of an improved claims ratio due to the release of claims provisions.

The unfavourable situation in the financial markets characterised by interest rate hikes and share price falls resulted in an 11% decrease in the investment portfolio, the value of which at the end of the year stood at EUR 3,271.2 million. In accordance with investment policies, its conservative structure and quality did not change significantly. Net inflows were recorded in the management of clients’ assets in mutual funds and discretionary mandates, but assets nevertheless decreased by 10% to EUR 1,389.5 million due to lower prices on the financial markets. By holding a 31.3% market share, the Group is one of the leading managers of mutual fund assets in Slovenia.

Implementation of the dividend policy by paying out a higher dividend

We strive to make the ZVTG share a profitable, safe and stable investment for investors. The ZVTG share was also affected by the situation in the stock markets, its price falling by 6% (the Ljubljana Stock Exchange SBITOP index dropped by 17%). Its total return was 4.5%, of which the dividend yield was 10.7%. After two years marked by the pandemic, a higher dividend of EUR 3.70 gross per share was paid in 2022. In addition to the level of the Group’s available capital, the uniqueness or exceptionality of some segments of the Group’s operations in the past two years was taken into account. 

Strategic focus on growth and development

We firmly believe that by continuing the Group’s digital transformation and developing service-oriented business ecosystems, we will achieve our main strategic objective – an outstanding and uniform client experience across all channels, all processes, all products and companies. 

Our transformation is based on the unified management of client experience and digital business. To this end, we are continuing with the digitalisation of our assistance, sales and claims procedures and the development of a single platform for client communication and service. In addition, several internal processes have already been equipped with tools for robotic process automation. The ecosystems in key areas of health, financial services, mobility, living and pets are linked in both the single platform and the Triglav komplet bonus system. We are expanding not only the range of our partners, with whom we share common business principles and the goal of achieving high client satisfaction, but also the range of assistance and related services.   

According to measurements, clients have once again recognised our efforts and have expressed their satisfaction. The NPS indicator, which measures the probability of recommending us to others, has reached 77. Annual in-house employee satisfaction surveys show that our achievements are the result of a high level of employee engagement, cohesion, teamwork and commitment. On behalf of the Management Board, I would like to thank all employees for their dedicated work. 

Sustainable development (ESG) defines our operations

We are committed to achieving our ambitions in sustainable development, which are a key part of our strategy. The range of products and services of both our core activities is being expanded with those that promote social and environmental benefits. The share of sustainable investments in the bond portfolio was increased. The Group’s Scope 1 and Scope 2 carbon footprint decreased by 13%. We aim to follow high corporate governance standards in our operations. We nurture a culture of diversity and inclusion, recognising the opportunities it brings. Women represent 55% of all employees, 45% of senior managers and 24% of employees who lead or supervise our companies.  Furthermore, we are strongly involved in socially and environmentally responsible projects, partnerships and donations. We participate in the international initiatives of UN PSI, UNEP FI and the PCAF partnership, which implement the principles of sustainable development, and we report in accordance with the GRI, SASB sustainability standards and according to the CDP climate change questionnaire. 

In a year full of challenges, we worked even harder to build a safer future for our clients, employees and you, our shareholders,  which will be our guiding principle also in the future. On behalf of the Management Board and all employees of the Triglav Group, I thank you for your trust.

Andrej Slapar
President of the Management Board of Zavarovalnica Triglav