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Successful performance towards strategic goals

Preliminary information on the performance of the Triglav Group in 2015

In the reporting year, the Triglav Group continued to operate in line with its strategic guidelines, which are based on its high profitability, safety and financial stability. Unaudited performance data of the Triglav Group and the parent company for 2015 show that the Triglav Group posted a total of EUR 919.1 million in gross written premiums from insurance and co-insurance contracts, which is 3% more over 2014. The Triglav Group achieved a favourable combined ratio of 92.8%, which is 3.5 percentage points better than planned and better than the 2014. The Group’s net profit also climbed by 4% to EUR 88.9 million over 2014. Along with the acquisition of Skupna pokojninska družba, premium growth in markets outside Slovenia, the absence of mass loss events and relatively unfavourable conditions on capital markets significantly affected the results of the Group in 2015.

The strategic focus on the insurance business has yielded the targeted results. With a view to further consolidation in the domestic market and continued development of the Group, health and pension insurance products have been given particular attention. The Triglav Group, the leading insurance/financial group in Slovenia and the Adria region, acquired Skupna pokojninska družba, the second largest provider of supplemental pension insurance on the Slovene market. Other factors that significantly affected the results of the Group in 2015 include premium growth in markets outside Slovenia, the absence of mass loss events and relatively unfavourable conditions on capital markets.

 

Business results above the budgeted level and above the 2014 results

In the reporting period, the Triglav Group posted a total of EUR 919.1 million in gross written premiums from insurance and co-insurance contracts, which is 4% more than planned and 3% more over 2014. The written premium of the parent company amounted to EUR 586.3 million, representing a decrease of 1% compared to the previous year. Gross claims paid by the Group totalled EUR 594.8 million, or 3% less than the preceding year, whereas the gross claims of the parent company fell by 7% and stood at EUR 390.6 million. Gross operating costs incurred by the Triglav Group in the insurance business remained approximately at the same level as the year before (EUR 231.6 million), while those of Zavarovalnica Triglav were 1% lower (EUR 161 million).

 

The Triglav Group and the parent company improved their combined ratios, which clearly show good performance of the core business. The Triglav Group achieved a favourable combined ratio of 92.8%, which is 3.5 percentage points better than planned and better than the 2014 ratio and an improvement of 2 percentage points compared to the long-term average target of 95%. The combined ratio of the parent company stood at 86.2%, having improved by 8.5 percentage points compared to 2014.

 

The profit level was above the 2014 results and the budgeted level. In 2015, the Triglav Group generated a profit before tax of EUR 102.5 million, which is 2% higher than in 2014. The net profit of the Group in the amount of EUR 88.9 million was 4% higher over 2014. The parent company ended 2015 with a profit before tax of EUR 68.4 million (19% more than in 2014) and a net profit of EUR 58.5 million, which is 28% more over 2014. The Group's and Company's return on equity was 12.8% and 10.9% respectively.

 

Market leader in Slovenia and the Adria region

In 2015, the Triglav Group consolidated its leading position in the Slovene insurance market, holding a market share of 36%. In addition to the parent company, Triglav, Zdravstvena Zavarovalnica and the Group’s new subsidiary Skupna pokojninska družba also operate in the Slovene market. In Slovenia, the Triglav Group holds a market share of 44% in non-life insurance, 35 % in life insurance and 23% in health insurance.

 

The Triglav Group increased its market share in the insurance markets of all five countries outside Slovenia where it operates.

 

High level of financial stability

Achieving a high credit rating by an established credit rating agency is one of the most important strategic objectives of the Triglav Group. This objective was attained in 2015, as both Standard & Poor’s and A.M. Best confirmed their “A-“ credit ratings, quoting the Group’s financial strength and solid performance as justification. The credit ratings are a reflection of the high profitability of the Group’s operations, its solid capital adequacy, appropriate risk management and high level of liquidity. In 2015, the stable medium-term outlook was upgraded to positive by Standard & Poor's, whilst A.M. Best reaffirmed the current positive medium-term outlook.

 

The high level of financial stability is also reflected in the 2% increase of the Group’s total equity (EUR 704 million) and 11% rise in insurance technical provisions (EUR 2,600.4 million). Both categories are the guarantee and the basis for balanced operations and ensure the long-term safety of insured parties.

 

Andrej Slapar, President of the Management Board of Zavarovalnica Triglav:”The year 2015 was marked by a good performance of the Triglav Group, the confirmation of high credit ratings and high dividend payments for shareholders. The acquisition of Skupna pokojninska družba was also an important milestone, contributing to the further consolidation of the Group in the Slovene pension insurance market. The Group has successfully completed the development activities aimed at implementing Solvency II requirements. This new regulation is introducing changes to the business culture of EU insurance companies, as it requires an assessment of the impact of any single business decision on the risk profile of the insurance company, its capital and its financial position. This will require a stronger focus on the proactive management of all risks a company is exposed to, rather than mere compliance with rules like thus far. The Triglav Group has adapted to the new requirements and continues to ensure an appropriate capital adequacy using the new calculation method.”

 

Detailed (audited) performance results for 2015 will be published on Wednesday, 6 April 2016 in line with the financial calendar of the Company (Annual Report of the Triglav Group and the parent company).

 

Financial highlights of the Triglav Group

  EUR thousand  
  2015 2014 Index 2014/2015
Gross written premium from insurance and co-insurance contracts 919,116 888,247 103
Net premium income 839,167 819,864 102
Gross claims paid 594,841 615,723 97
Net claims incurred 570,343 594,727 96
Insurance business gross operating expenses 231,588 231,012 100
Profit/loss before tax 102,478 100,411 102
Net profit/loss 88,861 85,682 104
Insurance technical provisions as at 31 Dec. 2,600,442 2,333,655 111
Equity as at 31 Dec. 704,045 688,141 102
Return on equity 12.8 % 13.4 % 95
Combined ratio 92.8 % 96.3 % 96
Number of employees as at 31 Dec. 5,379 5,406 100

 

 

Financial highlights of Zavarovalnica Triglav d.d.

  EUR thousand  
  2015 2014 Index 2014/2015
Gross written premium from insurance and co-insurance contracts 586,261 592,619 99
Net premium income 517,040 529,727 98
Gross claims paid 390,568 421,122 93
Net claims incurred 349,598 392,038 89
Gross operating expenses 160,966 162,693 99
Profit/loss before tax 68,433 57,496 119
Net profit/loss 58,506 45,613 128
Insurance technical provisions as at 31 Dec. 2,053,864 2,060,043 100
Equity as at 31 Dec. 530,560 544,000 98
Return on equity 10.9 % 8.7 % 125
Combined ratio 86.2 % 94.7 % 91
Number of employees as at 31 Dec. 2,341 2,365 99

 

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