As at 9M 2021 increased profit guidance for 2021
PROFIT BEFORE TAX. Triglav Group’s consolidated profit before tax for the first nine months amounted to EUR 92.1 million, up by 48% relative to the same period last year. Profit from non-life insurance amounted to EUR 66.0 million (25% growth), from health insurance EUR 9.6 million (25% growth) and from life and pension insurance EUR 10.0 million (EUR –0.4 million in the same period last year). The profit of the Group's non-insurance companies reached EUR 6.5 million, up by 190%. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: "We performed well also in the third quarter of the year, thanks to the entire team of over 5,200 employees of Triglav Group. We achieved very good results both in underwriting activities and in the management of clients' assets, while insurance portfolio returns were predictably affected by the low interest rate environment. Based on these results and by taking into account the business conditions anticipated until the end of the year, we expect the annual profit before tax to exceed the profit initially planned to reach between EUR 85 and 95 million. We estimate that it will range between EUR 115 and 125 million.”
UNDERWRITING ACTIVITIES. Backed by its underwriting discipline and a client-centric approach, Triglav Group achieved a 10% increase in consolidated gross written premium in the first nine months of 2021 compared to the same period last year (EUR 1,056.2 million). Premium growth was recorded in all markets and in all three insurance segments. In Slovenia it stood at 8%, which is 4 percentage points above the market, reaching 16% in markets outside Slovenia. Non-life insurance premium increased by 12%, life and pension insurance premium by 9% and health insurance premium by 1%. The volume of gross claims paid of EUR 521.6 million did not deviate significantly from the comparative period of the previous two years. The combined ratio in non-life and health insurance was favourable, standing at 89.3% as a result of an improved claims ratio. As at 30 September 2021, the Group allocated EUR 3,235.7 million to gross insurance technical provisions, up by 7% relative to the 2020 year-end. Uroš Ivanc, Management Board Member of Zavarovalnica Triglav, said: “The achieved insurance technical results were further positively influenced by the relatively lower frequency of claims and the favourable development of claims provisions formed in past years. Last year, claims provisions were formed with particular caution due to the increased uncertainty related to the onset of the pandemic.”
INVESTMENT PORTFOLIO AND ASSETS UNDER MANAGEMENT. As expected, low interest rates affected Triglav Group’s return on its investment portfolio, which amounted to EUR 3,604.2 million. The portfolio’s composition did not change significantly. The situation in the financial markets and net inflows had a positive effect on Triglav Skladi’s performance and on the volume of clients’ assets managed in mutual funds and discretionary mandate assets. These assets reached EUR 1,400.1 million, an increase of 21% compared to the 2020 year-end.
More information available in public announcement, 9M 2021 Report and investor presentation.
Triglav Group business plan for 2022 and strategy to 2025
In 2022 Triglav Group plans to increase its written premium volume to over EUR 1.4 billion and its profit before tax to EUR 120–130 million, as well as to achieve a favourable combined ratio of below 93%. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: "We have set ambitious goals. We plan further premium growth both in the existing markets of the region and in those EU markets where we operate under the principle of free movement of services. We also expect good results in the management of clients' assets.” More information in the summary of 2022 business plan.
Key guidelines of the existing strategy were not changed, but upgraded to reflect the goals of growth and development and the client-centric approach. In the strategy period, a 10% return on equity (ROE) is planned and in 2025 total income is projected to exceed EUR 1.6 billion. More information in Strategy of Triglav Group.
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.
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 systematically integrates aspects of sustainable development into the Group’s both strategic activities (insurance and asset management) and into its own operations, while improving the Group’s ESG disclosure.
S&P Global Ratings and AM Best in 2021 Triglav Group reaffirmed high “A” credit rating with a stable medium-term outlook
More information available in S&P full report and AM Best press release.