S&P reaffirms “A” credit ratings with a stable outlook
Following its regular annual revision on 11 September 2020, S&P Global Ratings (hereinafter: S&P or the agency) reaffirmed the “A” Long-Term Credit Rating and Financial Strength Rating with a stable medium-term outlook of Triglav Group and thereby of its parent company and its subsidiary Pozavarovalnica Triglav Re. The high rating is a reflection of the stable and profitable operations of Triglav Group, its strong capitalisation, sound reinsurance protection and its leading position in the domestic and regional insurance markets. The “A” credit rating exclusively reflects the Group's stand-alone credit risk profile.
More information available in public announcement and S&P full report.
Premium growth and lower profit in H1 2020
Despite the challenging conditions during the pandemic, Triglav Group achieved in first half of the year premium growth in most of its markets and in all three insurance segments and posted a total of EUR 673.4 million in consolidated gross written premium, up by 7% relative to the same period last year. Profit before tax of EUR 40.6 million was 3% lower compared to the corresponding period last year, primarily as the result of the deteriorating situation in global financial markets and partly due to major CAT and other one-off events. The combined ratio was favourable at 92.4%. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, d.d., said: "Even in these challenging conditions, with a team of over 5,200 employees, we focus on the implementation of our strategic guidelines and ensure that our operations remain profitable and safe. In the first half of the year, premium income recorded growth, whereas the generated profit was adversely affected by the deteriorating situation in global financial markets and partly by major CAT and other one-off events. The pandemic has radically changed the way we do business and we have adapted effectively to this situation. We gave priority to the health of our clients, employees and other stakeholders, continuously provided our services to the clients, and continued to pursue our sustainability goals and solidarity with the environment. The extraordinary situation gave additional impetus to our planned development activities and we assess that we have made an important step towards the Group's digital transformation.”
Although the future economic and financial impacts of the pandemic remain uncertain, at the end of the first half of the year 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 current situation. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, d.d., said: “The spread of the coronavirus with the onset of the pandemic has brought about a deterioration in the macroeconomic environment and great volatility in global financial markets. The high level of uncertainty prevents us from giving a relatively reliable annual profit guidance this year (the profit before tax was planned between EUR 95 million and 105 million). We re-examined the bases and assumptions of the 2020 plan and confirm the assessment made in April that the annual profit before tax will likely be 10–25% lower than planned. Furthermore, we assess that the annual written premium and the combined ratio of the Group will be within the planned figures (around EUR 1.2 billion and below 95% respectively)..”
More information available in public announcement, H1 2020 Report and investor presentation.
45th General Meeting of Shareholders
At 45th General Meeting of Shareholders of Zavarovalnica Triglav, d.d., as at 2/6/2020, 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, d.d.,, 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, d.d., 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.
Insurance Supervision Agency’s Call about dividends
More information available in public announcement as at 31 March 2020 and as at 20 August 2020.
Triglav Posts Good Results for 2019
More information available in Latest annual report.