2022: Increased business volume and profit
According to unaudited data, Triglav Group generated a profit before tax of EUR 134.5 million in 2022, up by 1% over the previous year. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: "Last year, we made important development steps and achieved good results in a demanding business environment that confirm both the robustness of our business model and the flexibility and success of our strategy. On these bases, we were able to adjust appropriately to the changes in the business environment, especially the rising inflation and the unfavourable situation in the financial markets."
Triglav Group's total revenue rose by 10% to EUR 1,599.3 million, of which gross written premium accounted for EUR 1,479.6 million (up by 9% over 2021). Premium growth was recorded in all three insurance segments and in all markets. Other insurance income grew by 23% to EUR 59.9 million and the Group's other income increased by 12% to EUR 59.8 million, which primarily included income from asset management and the sale of investment property. Gross claims paid rose by 13% to EUR 832.2 million. Major CAT events in the estimated value of EUR 32.1 million, which was more than 20% higher than the five-year average, also contributed to this. The Group's combined ratio was favourable, standing at 88.1%. Due to inflationary pressures, the increased business volume and investing in digitalisation and other development activities, the Group's gross operating expenses increased by 12% (EUR 374.9 million). Uroš Ivanc, a member of Management Board of Zavarovalnica Triglav, said: "The increased business volume and the partial release of claims provisions created in past years effectively compensated for higher claims and operating expenses due to the higher activity of households and businesses, rising inflation and other impacts from the environment. In estimating claims provisions, the trends of the best estimate introduced by the IFRS 17 accounting standard were followed, bringing their amount closer to the estimated value according to IFRS 17."
As at 31 December 2022, the Triglav Group's balance sheet total reached EUR 4.1 billion (index 94), its total equity amounted to EUR 752.8 million (index 81) and gross insurance technical provisions totalled EUR 3,100.0 million (index 97). Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: "The Triglav Group remains financially strong; its financial position in 2022 was significantly affected by the situation in the financial markets, rising inflation and higher dividend payout. Despite higher risks, as at the year-end the Group's capital adequacy was high and around the lower end of the target range that we had set."
More information available in public announcement and investor presentation (IFRS 17 Update included).
International Financial Reporting Standards (IFRS 17/9)
At Triglav Group, we prepared an informative theoretical presentation of the new international financial reporting standards (IFRS 17/9) related to re(insurance) contracts.