46th General Meeting of Shareholders of Zavarovalnica Triglav
Today, at the 46th General Meeting of Shareholders of Zavarovalnica Triglav d.d., the shareholders passed the proposal of the Management Board and the Supervisory Board that part of accumulated profit in the amount of EUR 38,649,751.60 be used for dividend payment. This represents 53% of the Company's consolidated net profit for 2020 and a 5% dividend yield. The dividend of EUR 1.70 gross per share will be paid to the shareholders appearing in the share register as at 9 June 2021.
Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “I thank the shareholders for their trust. We are aware of the importance of a dividend payout for our shareholders, and we aim to implement a sustainable and attractive dividend policy as planned. In deciding on the use of accumulated profit this year, the General Meeting of Shareholders considered the proposal of the Management Board and the Supervisory Board, which is in line with the dividend policy and which we also justified to the regulator based on stress tests. These show that Triglav Group will maintain its financial stability in the persisting situation of great uncertainty despite paying out a dividend in said amount.”
The shareholders also took note of the Annual Report of Triglav Group and Zavarovalnica Triglav for 2020, granted a discharge to both the Management Board and the Supervisory Board of Zavarovalnica Triglav, and approved the proposed amendments to the Company’s articles of association as a result of amended legislation and some substantive amendments. The existing member Andrej Andoljšek and the new members Tomaž Benčina, Branko Bračko, Jure Valjavec and Peter Kavčič were appointed members of the Supervisory Board.
Solid Q1 results, performance in challenging situation
In the first three months of 2021, Triglav Group generated EUR 31.8 million in consolidated profit before tax, which is 21% more than in the first quarter of 2020 and 6% more than in the first quarter of 2019 (the comparative quarter before the COVID-19 pandemic). The results achieved were favourably influenced by the increased volume of written premium and less pronounced claims experience, while the continuing unfavourable conditions of interest rates, which reduce interest income, and the formation of additional insurance technical provisions due to existing and anticipated business conditions also had an impact. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “We have had a good start in 2021. Taking into account the business conditions anticipated until the end of the year, we estimate that our annual profit before tax will be within the planned range. In our operations, we take into account the continuing high uncertainty in the business environment, the unclear consequences of the COVID-19 pandemic on the economy and the unfavourable conditions of low interest rates.”
More information available in public announcement, Q1 2021 Report and investor presentation.
Audited Annual Report for 2020 published
At its session on 30 March 2021, the Supervisory Board of Zavarovalnica Triglav approved the Audited Annual Report of Triglav Group and the parent company for 2020. The report is published in the official ESEF format pursuant to Commission Delegated Regulation (EU) 2019/815 and paragraph one of Article 134 of the Market in Financial Instruments Act (ZTFI-1) and additionally, in the unofficial PDF version designed in accordance with the MAR Regulation.
Triglav Group generated profit before tax of EUR 90.9 million in 2020 (index 90 relative to 2019) and net profit of EUR 73.7 million (index 88 relative to 2019) as well as increased its volume of business (written premium grew by 4% to EUR 1,234 million and the volume of clients' assets in mutual funds and discretionary mandate assets by 5% to EUR 1,156 million). The Group remained adequately capitalised and liquid, as also confirmed by the assigned high “A” credit ratings with a stable medium-term outlook by the credit rating agencies S&P Global Ratings and AM Best. The risk profile of the Group did not change significantly; the capital adequacy ratio of 240% as at the 2020 year-end was within the target range in accordance with the Group's capital management policy. Both reports, which provide more detailed information on the solvency and financial condition of the Triglav Group and the parent company, are available here.
More information on 2020 performance available in IR presentation.
Commitment to Sustainability (ESG)
By pursuing its mission to build a safer future, Triglav Group is realising its sustainability goals. As at the 2020 year-end, the Group’s sustainability efforts were upgraded by adopting a formal document entitled “The Triglav Group’s commitment to sustainability”, which comprehensively sets out the directions of the Group’s development in the environmental, social and governance areas (ESG).
Triglav Group 2021 plan
In view of the selected probable scenario of business conditions in 2021, Triglav Group plans to increase its consolidated gross written premium to EUR 1.2–1.3 billion and its profit before tax to EUR 85–95 million. The Group’s combined ratio is planned at below 95%, which is in the lower (favourable) end of the range of its average target strategic value of around 95%.
More information available in public announcement and plan.
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.