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Privatisation

The privatisation of insurance companies started in 2000, when the National Assembly of the Republic of Slovenia adopted the Ownership Transformation of Insurance Companies Act, regulating the ownership transformation of socially owned capital in insurance companies.

Following a decision by the Constitutional Court of the Republic of Slovenia, the revised Ownership Transformation of Insurance Companies Act (ZLPZ-1) was adopted to allow for the possibility of further privatisation of the shares of Zavarovalnica Triglav that were transferred to Kapitalska družba. Until the implementation of a special act, Kapitalska družba had limited management rights on its 34.47% stake in Zavarovalnica Triglav, as the Act suspended its right of disposal. Kapitalska družba exercised all other ownership rights and received dividends.

On 11 September 2007 the National Assembly adopted the Act Amending the Ownership Transformation of Insurance Companies Act (ZLPZ-1A), which restored the right of Kapitalska družba to freely dispose of the shares of Zavarovalnica Triglav. At the request of the National Council of the Republic of Slovenia, the National Assembly adopted a decree (Official Gazette RS, No. 87/2007) calling a legislative referendum for 11 November 2007 on the Act Amending the Ownership Transformation of Insurance Companies Act (ZLPZ-1A). The majority voted against and the Act did not enter into force.

On 23 May 2008, the National Assembly adopted the Ownership Transformation of Insurance Companies’ Shareholdings to Which Natural Persons Are Entitled Act (ZLPDZ), which entered into force on 21 June 2008. The Act stipulates that insurance company shares which had been issued for a stake in the undenominated capital owned by Kapitalska družba on the basis of the Ownership Transformation of Insurance Companies Act be permanently transferred to the Pension and Disability Insurance Institute with the sole purpose of providing additional funds for compulsory pension and disability insurance. The shares are managed by Kapitalska družba on behalf of and for the account of the Pension and Disability Insurance Institute.