Long-term development trends and scenarios show that the Group operates in appealing lines of business, although many significant changes can be expected over the next 15 years. The Group believes its activities have substantial synergy potential and plans to exploit this more efficiently in the future.

According to estimates, in the period up to 2015 the Group’s business results will be affected by:
· economic stagnation in all key markets and frequent economic turbulence;
· changes in consumer behaviour (stagnation of purchasing power, the need to decrease household, company and state indebtedness); and 
· strong competitors focusing on gaining market shares in South-East Europe.

The Triglav Group has committed itself to the realisation of strategic objectives at the following four levels:
· employees, knowledge and learning;
· processes and organisation;
· clients;
· finances.

Seeing potential growth

The Triglav Group is one of the largest insurance/financial groups in South-East Europe, its key market. It operates in Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, the Former Yugoslav Republic of Macedonia, and the Czech Republic. Despite still being largely economically underdeveloped in terms of finance/insurance, these markets are attractive because of their growth potential in the future, as is evident by strong international competition.  

Employees- the basis of the Group's sustainable development

For the period to 2015, the Triglav Group has set very ambitious goals. The vision of the Triglav Group is focused on its commitment to profitability and the security of operations. Return on equity (ROE) is planned to be higher than 12%. The sources of profit growth are competitive, high quality services, effective risk management and the financial stability of the Triglav Group, which will serve to maintain the “A” rating received from an established credit rating agency.
Members of the Triglav Group are regarded more highly than their competitors and are distinguished by comprehensive insurance-financial services offered through modern sales channels. The Group has a well regulated and efficient governance system and follows the principles of modern organisation in all areas of business. Dedicated, highly-qualified employees are the basis of the Group’s sustainable development.

Focu on profitability

In the Slovene market, the Triglav Group is focused on profitability, while simultaneously aiming to maintain the largest market share, which should not fall below 38% (including Triglav Zdravstvena zavarovalnica). The Group plans to enter only into projects and partnerships in which it is ensured the controlling stake. The potential for the Group to penetrate deeper into the Slovene market and develop further lies primarily in health and pension insurance. By implementing the necessary systemic (regulatory) changes, the Group wants to demonstrate both its responsibility and its pro-active approach. If the required return is achieved, the Triglav Group will participate in establishing and developing private medical services and long-term care services, which will accelerate the development of related insurance products in non-life, life, health and combined health and social security insurance for all stages of its clients’ lives.

Indicators are the Group'scompass

The Group has developed a set of strategic goals and indicators, which will be used to measure the realisation of the strategy on the level of employees, organisation, clients and financial effects. By the end of the strategic period, the Group plans to achieve a return on equity above 12% and a stable combined ratio (a measure of core business profitability) of less than 95%. According to plans, all subsidiaries will operate at a profit. The indicators are linked to concrete strategic activities, which will be continuously monitored and upgraded.

The Group’s key strategic directions (strategic themes) include:
· creating an efficient Group management system;
· optimising business processes and ensuring appropriate staffing;
· achieving profitability of operations and increasing the total value of the Group;
· expanding in existing and new markets;
· developing alternative sales channels; and
· entering new key projects with a profitability rate higher than the target ROE of the Group in 2015.