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14/11/2018

Q1-3 2018 Results of Triglav Group and Reappointment of Members of the Management Board

ZAVAROVALNICA TRIGLAV, d.d., Ljubljana

Q1-3 2018 Results of Triglav Group and Reappointment of Members of the Management Board

In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation, ZAVAROVALNICA TRIGLAV d.d., Ljubljana hereby publishes the following notice:

PROFITABLE OPERATIONS. In the first nine months of 2018, Triglav Group posted a profit before tax of EUR 69.9 million or 8% more than in the same period last year. It was primarily influenced by good performance of the insurance business, whereas returns on investments were lower than in the corresponding period last year, as expected.

PREMIUM GROWTH IN ALL MARKETS AND SEGMENTS. The Group’s consolidated gross written premium totalled EUR 820.2 million, up 6% compared to the respective period of 2017. Premium growth was recorded in all markets where the Group operates. The average premium growth in the Slovene market was 5% and in the markets outside of Slovenia it stood at 8%. The share of premium written in the markets outside of Slovenia further increased by 0.5 percentage point to 18.3%. In terms of individual insurance segments, a 6% premium growth in the non-life insurance segment was seen, a 1% growth in life insurance and a 10% growth in health insurance.

FAVOURABLE COMBINED RATIO. Compared to the corresponding period last year, net claims incurred went up (index 101), however their growth noticeably lagged behind net premium income growth (index 106). This was reflected in the improved combined ratio of Triglav Group, which was favourable at 92.4% (94.5% y-o-y).

A LOWER RETURN ON FINANCIAL INVESTMENTS. As at the reporting date, the Group’s financial investments totalled EUR 3.1 billion; they are well dispersed and mostly invested in the euro area in line with the investment policy. Return on investments (excluding unit-linked life insurance contract investments) dropped by 19% compared to the respective period of 2017, which is expected due to the last year’s one-off events and the continued low interest rate environment.

TAEKOVER ACITIVITES IN THE CONTEXT OF THE GROWTH AND DEVELOPMENT STRATEGY. Triglav Group develops and grows organically, however potential takeovers are not excluded should an appropriate opportunity present itself. In 2018, the Group signed agreements to acquire Raiffeisen Mirovinsko osiguravajuče društvo in the Croatian pension insurance market, the Slovene asset management company ALTA Skladi and acquired the remaining 28.1% stake in Skupna pokojninska družba, which operates in the Slovene supplemental voluntary pension insurance market.

Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “We are pleased with the performance in the first nine months of 2018. Taking into account the business conditions anticipated until the end of the year, we confirm our annual profit guidance. Triglav Group is financially sound, operating profitably and safely. With a team of over 5,100 employees, we are consistently implementing the set development activities. Again this year, this is further confirmed by the “A” credit rating with a stable medium-term outlook, which was assigned by the credit rating agency S&P Global Ratings.”

At its session held on 14 November 2018, the Supervisory Board of Zavarovalnica Triglav appointed Andrej Slapar President of the Management Board of Zavarovalnica Triglav for a new five-year term of office. Andrej Slapar has served on the Board as its President since May 2013. His new term of office will commence on 12 November 2019. Furthermore, the Supervisory Board approved the proposal submitted by the President of the Management Board and reappointed Uroš Ivanc and Tadej Čoroli as Members of the Management Board of Zavarovalnica Triglav. Uroš Ivanc and Tadej Čoroli started their terms of office in July 2014 and will continue to serve on the Board as of 15 July 2019 and 30 July 2019 respectively. Igor Stebernak, Chairman of the Supervisory Board of Zavarovalnica Triglav, said: “The Supervisory Board assesses the work of the Management Board as positive. The cooperation and mutual trust between the Management Board and the Supervisory Board are good. On behalf of the Supervisory Board I wish the Management Board of the Company every success in further pursuit of the strategic objectives of Triglav Group.

The Unaudited Report of Triglav Group and Zavarovalnica Triglav d.d. for the first nine months of 2018 and the Presentation for Investors are enclosed hereto.

This information will be published on the website of Zavarovalnica Triglav d.d. at www.triglav.eu as of 14 November 2018 and will remain available on the Company’s public website for a period of at least ten years.