The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2023

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2023

Glossary of terms

Inward reinsurance

The activity of a reinsurance company to assume from other insurance companies and reinsurance companies the portion of the risk which exceeds their retention limits.

Accumulated profit 

The legally justified amount of net profit for the year (net earnings for the year), net profit brought forward (retained earnings) and reserves from profit, which in accordance with the decision of the insurance company's management board is first used to increase reserves (legal reserves, treasury share reserves and treasury shares, and statutory reserves) and other reserves according to the supervisory board's decision. The remainder, referred to as accumulated profit, is allocated by the general meeting of shareholders to dividends, other reserves, carry-forwards and other purposes.


A party to a reinsurance contract who passes a portion of their assumed risks to reinsurance. The recipient of those risks is usually an insurance company. To cede means to pass a portion of assumed risk to a reinsurance company. 

Total return on share

The sum of growth in the share price in the accounting period and the dividend yield as at the reporting date.

Total business volume

Comprises gross written premium and other income.

Total revenue

Comprises insurance revenue, asset management income, other operating income and other income (under IFRS 17).

Net earnings per share

The ratio of net earnings in the accounting period which refers to the ordinary shareholders of the controlling company to the weighted average number of ordinary shares less ordinary shares held by Zavarovalnica Triglav or the Triglav Group members.

Return on equity (ROE)

The ratio of net earnings for the period to the average balance of shareholders' equity in the period. 

Return on equity of controlling interests

The ratio of net earnings to the average balance of shareholders' equity held by controlling interests in the accounting period. 

Free float

Shares held by shareholders who own 5% or less of shareholders' equity. 

Economic value distributed

Comprises claims incurred, net reinsurance service result, finance expenses from financial and insurance contracts, other expenses, dividend payments, labour costs, tax expense and community investment (prevention, donations, sponsorships). 

Dividend yield

The ratio of gross dividends per share to price per share on a given day. 

Supplemental insurance/rider

Insurance that is underwritten as a supplement to another (precisely defined) insurance and that cannot be underwritten independently.

Investment return/investment result

A difference between income and expenses from financial investments. Income from financial investments comprises income from investments in associates and income from investments (interest income, gains on disposal of investments and other income from investments). Expenses from financial investments comprise expenses from investments in associates and expenses from investments (impairment of investments, losses on the disposal of investments and other expenses from investments). Return on own investment portfolio does not include unit-linked life insurance assets and financial investments from financial contracts.

Rate of return on investment

The ratio of return on investment to the average balance of financial investments. Own investment portfolio includes financial investments, investments in associates, loans granted, bank deposits and other financial investments, but excludes unit-linked life insurance assets, financial investments from financial contracts and investment property. 

New business margin of life and pension insurance

The ratio of the sum of the contractual service margin (CSM) of new contracts and the loss of onerous contracts to the present value of new premium.

Endowment (for life insurance products with a savings component)

An insured event in which the insurance company pays the sum insured, together with bonuses after the insured survives the agreed insurance period. 

Financial contracts 

Contracts that take the form of an insurance contract but do not meet the definition of an insurance contract under IFRS 17. Distinct investment components of pension insurance contracts are also treated as financial contracts because these contracts do not bear insurance risk during the accumulation (savings) phase.

Financial investments

On initial recognition, a financial investment is classified into one of the following measurement categories:

  • financial investments measured at fair value through profit or loss (FVTPL),
  • financial investments measured at amortised cost (AC),
  • financial assets measured at fair value through other comprehensive income (FVOCI).

Incurred but not reported (IBNR)

Provisions for incurred but not yet reported claims. 


The reduction of sums insured in life insurance with a savings component, which is carried out if the policyholder stops paying the premium. In addition to standard criteria for setting the premium (gender and age of the insured), the amount of the sum insured depends primarily on the number of paid-in premiums and the remaining insurance term.

Book value per share

The ratio of shareholders' equity to the number of outstanding shares as at the reporting date. 

Onerous contracts

Non-profitable insurance contracts where all cash flows arising from an insurance contract together represent a negative net present value of the cash flow. 

Capital adequacy ratio

The ratio of available own funds eligible for covering the solvency capital requirement to the solvency capital requirement.

Combined ratio

The sum of the expense ratio and claims ratio. A value of less than 100% indicates profit from a particular segment, excluding return on investment. It shows the profitability of the non-life segment, the health segment, or both together.

Composite (or universal, general) insurance company

An insurance company that conducts non-life and life insurance business.  


In the insurance industry, the terms gross and net typically relate to quantities and ratios before and after the deduction for reinsurance. 

Own risk and solvency assessment (ORSA)

The insurance company's own assessment of the risks to which it is exposed in the course of its business, including the risks to which it may be exposed in the future, and an assessment of the adequacy of own funds available to cover them.

Measurement of insurance contracts under IFRS 17

The following methods are used to measure insurance contracts:

  • The general model or Building Block Approach (BBA) is the default model used for all long-term insurance contracts.
  • The simplified approach or Premium Allocation Approach (PAA) is used for the measurement of insurance contracts with short-term coverage (usually applicable to non-life insurance policies with short-term coverage).
  • The Variable Fee Approach (VFA) is typically applied to life insurance contracts with direct participation features (unit-linked contracts).

Gross written premium

The sum of all premiums that the insurance company charges to policyholders following the underwriting or renewal of policies in the accounting period. 

Gross claims paid

Benefits and claims calculated for all or a portion of settled claims in the accounting period, including claim settlement costs. 

Claims incurred

Comprise insurance service expenses for claims, change in future cash flows, change in experience correction, loss of onerous contracts, allocation to onerous contracts and other insurance expenses. 

Operating expenses

Operating expenses are recognised as original expenses by nature. They are split into attributable and non-attributable costs to insurance contracts. Attributable costs comprise acquisition costs, claim handling expenses, management costs and other administrative costs and, as such, are attributed to the individual groups of insurance contracts. 

Expense ratio

The ratio of the sum of attributable and non-attributable costs, net other insurance expenses less other insurance income to insurance revenue.


The termination of a life insurance policy that results in the payout of the value thereof (saved assets and mathematical provisions less the costs incurred by the insurance company).

Contractual service margin (CSM)

Comprises the unearned profit that the company expects to earn from insurance contracts. It is calculated based on expected future cash flows (inflows and outflows), taking into account the time value of money and risk adjustment for non-financial risk.

Net investment result

Comprises the investment result, the financial result from insurance contracts, gains and losses on investments in associates and the change in the provisions for not achieving the guaranteed yield on supplemental voluntary pension insurance. 

Insurance operating result

Comprises insurance revenue less claims incurred and acquisition and administrative costs, including non-attributable costs, net reinsurance service result and net other insurance income/expenses. 

Share average daily turnover

The ratio of the total value of share turnover in the accounting period to the number of trading days in that period.


Reinsurance is the business of accepting risks ceded by an insurance or reinsurance company.


The portion of non-life insurance premium that an insurance company allocates to prevention activities to mitigate future risks. 


A company in which another entity directly or indirectly holds between 20% and 50% of voting rights, and thus has a significant effect on capital, but does not control that company.

Insurance revenue

Revenue from insurance contracts issued under IFRS 17 that do not include a savings component.

Risk adjustment for non-financial risk (RA) 

Relates to the compensation set by the insurance company because it bears uncertainty about the amount and timing of the cash flows that arises from non-financial risk. 

Risk profile

A risk profile is a quantitative assessment of the risks to which an insurance company is exposed. In order to adequately identify the risk profile, processes are established, and risk exposure and measurements are defined for every type of risk for the purpose of assessing the extent thereof.

Deferred acquisition costs (DAC)

Costs that an insurance company incurs in the acquisition of new insurance contracts are deferred evenly over the entire term of those contracts for accounting purposes. Thus, the one-time cost incurred when insurance is underwritten is deferred evenly over the entire insurance term.

Available own funds

Available own funds are used to cover the solvency capital requirement and represent the surplus of assets over liabilities, plus subordinated liabilities, taking into account other regulatory, insurer-specific adjustments. 

Reserves from profit

Comprise other reserves from profit, legal and statutory reserves, contingency reserves and credit risk equalisation reserves.

Solvency II

The European Union's regulatory framework in the field of insurance, which defines the calculation of capital adequacy and the governance of and reporting by insurance companies. An insurance company's available own funds must be at least equal to the assessment of assumed risks, as set as out in the regulatory framework.


A way to equalise risks, where assumed risks are split or spread among several insurance companies. The proportion of risk assumed by an individual insurance company may vary and represents the basis for determining an individual insurance company's share of the premium and potential loss. Each insurance company is jointly and severally liable to the insured, i.e. for the full amount of benefits and/or claims from an insurance contract, irrespective of the proportion of risk it assumes.

Assets under management

Comprise own investment portfolio, assets from the pension insurance savings funds, unit-linked insurance assets, assets in mutual funds and discretionary mandate assets, and alternative investments.

Expense ratio – the ratio of gross operating expenses of the insurance business to gross written premium

The ratio of gross operating expenses from insurance operations to gross written premium. 

Claims ratio

The ratio of the sum of claims, change in future cash flows, change in experience correction, change in onerous contracts and the reinsurance result to insurance revenue.

Contractual service margin sustainability

The contractual service margin sustainability shows the ratio of the contractual service margin (CSM) of new contracts to the release of the contractual service margin to profit or loss.

Market capitalisation

The value of a company calculated as the product of the closing share price and the number of shares on the reporting date.

Economic value generated

Comprises total revenue and finance income from financial and insurance contracts.

Comprehensive income

Comprehensive income consists of two elements. The first element comprises net earnings in the accounting period from the statement of profit or loss. The second element comprises other comprehensive income, which discloses income and expense items that are not recognised in the statement of profit or loss, but affect the balance of shareholders' equity. These income and expenses arise mainly from the revaluation of assets to fair value and from the financial effects of the valuation of insurance and reinsurance contracts.  

Economic value retained

The difference between economic value generated and economic value distributed.

Solvency capital requirement (SCR)

The amount of an insurance company's capital that it needs to remain solvent for at least one year with a 99.5% probability calculated in accordance with Solvency II. It is calculated according to a statutory standard formula that takes into account all material measurable risks: underwriting, market, credit and operational risks. 

Insurance density (premium per capita)

The ratio of gross written premium to the number of inhabitants of a particular country. 

Insurance penetration

Insurance premium as a proportion of gross domestic product (GDP).

Insurance premium

The amount set out in an insurance contract that the policyholder pays to the insurance company. Insurance premium covers the payment of current and future claims, the costs of prevention activities and the insurance company's operating expenses.

Insurance class

Various insurance types that are grouped in accordance with the Slovenian Insurance Act based on the main types of risks they cover. The Slovenian Insurance Act defines 24 different insurance classes.

Insurance contract

A contract is defined as an insurance contract when, at the time of conclusion, significant insurance risk is accepted from the policyholder.