First information on the 45th General Meeting of Shareholders
At today’s 45th General Meeting of Shareholders of Zavarovalnica Triglav, the shareholders adopted the resolution proposed by the Management Board and the Supervisory Board that accumulated profit for 2019 remain undistributed. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “I thank the shareholders for their trust. When deciding on the distribution of accumulated profit for 2019, both regulator’s calls and the aspect of maintaining Triglav Group’s financial stability in the current uncertain situation were taken into account. The accumulated profit for 2019 thus remains undistributed and will be allocated for future dividend payments or for other purposes in accordance with the respective resolution of the General Meeting of Shareholders.”
The shareholders took note of the Annual Report of Triglav Group and Zavarovalnica Triglav for 2019 and the remuneration policy for the members of the Company’s management and supervisory bodies, as well as granted a discharge to both the Management Board and the Supervisory Board for 2019. The General Meeting of Shareholders re-appointed Igor Stebernak a Supervisory Board member – shareholder representative and took note of the appointment of new Supervisory Board members – employee representatives.
Premium growth and lower profit in Q1 2020
By adjusting its operations to the pandemic, Triglav Group achieved premium growth in most of its markets and in all three insurance segments and posted a total of EUR 348.9 million in consolidated gross written premium, up by 10% relative to the same period last year. Its quarterly profit before tax of EUR 26.4 million was 12% lower than the preceding year primarily as a result of major CAT events in the first three months of 2020 (an earthquake in Zagreb and hailstorms in Slovenia). The combined ratio was favourable at 93.9%. The situation in the business environment, which was affected by the pandemic, caused a drop in the value of financial investments, but did not have a significant impact on the Group's profit in the first quarter of the year. Based on analysed scenarios, the Group assesses that there may be a decline in the planned annual performance categories later in the year and anticipates that it will be able to give a more reliable assessment at the end of the first half of the year. At this time, the Group assesses that its insurance and investment portfolios are sufficiently resilient and that its capital position is appropriate to effectively cope with increased risks arising from the current situation. Triglav Group remains committed to its vision to dynamically develop new ways of doing business by employing a client-centric approach as the foundation of the Group’s responsible long-term development, while at the same time operating profitably and safely.
More information available in public announcement, Q1 2020 report and investor presentation.
Assessed impact of pandemic on 2020 performance
Due to the impact of the COVID-19 pandemic on economic activity and financial markets, some of the bases used by Triglav Group in developing its business plan for 2020 changed in the first quarter of 2020. Given the high uncertainty regarding the future development of the pandemic, Triglav Group decided to publish its assessment of the likely impact of the pandemic on the business plan’s main categories based on an analysis of the most likely scenarios. Nevertheless, Triglav Group assesses that its insurance and investment portfolios are sufficiently resilient and that its capital position is appropriate to effectively cope with increased risks arising from the COVID-19 pandemic situation. More information available in announcement.
Insurance Supervision Agency’s Call
On 31 March 2020, the Insurance Supervision Agency called upon the insurance companies to suspend the payout of dividends from accumulated profit until 1 October 2020 and not to undertake any irrevocable commitment to pay out dividends. In respect thereof, the Management Board and the Supervisory Board of Zavarovalnica Triglav will propose to the regular annual General Meeting of Shareholders of Zavarovalnica Triglav that accumulated profit, which amounted to EUR 60,543,475 as at 31 December 2019, remain undistributed.
The Company is not changing its dividend policy, which in a balanced way seeks to ensure the financial stability of Triglav Group, implement its growth and development strategy, and pay out attractive dividends to its shareholders. However, the Company understands the call of the regulator, which is responsible for the financial stability of the Slovene insurance sector, especially in a situation of great uncertainty caused by the pandemic. The call takes into account the recommendations and actions of EU regulators and authorities (EIOPA and IAIS) to ensure the solvency and capital adequacy of insurance companies in the EU.
Triglav Posts Good Results for 2019
More information available in 2019 annual report and investor presentation.