In 9M 2020 business volume higher and profit lower
Triglav Group posted a total of EUR 960.9 million in consolidated gross written premium, up by 6% relative to the same period last year, and achieved premium growth in most of its markets. Profit before tax of EUR 62.4 million was 13% lower compared to the corresponding period last year, primarily as the result of the situation in global financial markets and partly due to major CAT events and an increase in provisions as a result of the current business conditions. Triglav Group generated a consolidated profit of EUR 62.4 million before tax in the first nine months of 2020 (index 87). The part of Triglav Group’s profit before tax earned from underwriting activities amounted to EUR 60.4 million (vs. EUR 54.7 million in Q1–3 2019), up by 10% relative to last year, and the part earned from investment activities amounted to EUR –0.2 million (vs. EUR 14.9 million in Q1–3 2019) predominantly due to additional provisions in the life and pension insurance segment.
The combined ratio was favourable at 91.4%. In the current situation of uncertainty, Triglav Group stands by its already published annual profit estimates, while assessing that its insurance and investment portfolios are sufficiently resilient and that its capital position is appropriate to effectively cope with increased risks, as confirmed by the high credit ratings assigned this year.
Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “During this year's COVID-19 pandemic, we are even more vigorously implementing our mission to BUILD A SAFER FUTURE. We dynamically adapt our operations in individual markets to measures to protect the health of employees, clients and other stakeholders, while continuously providing services, pursuing our sustainability goals and remaining closely connected to the environment in which we operate. By being committed to underwriting discipline, cost optimisation and intensive sales activities, we increased the volume of our business in the first nine months. We are satisfied with the profit achieved.”
More information available in public announcement, 9M 2020 report and Investor presentation.
Triglav Group 2020 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%.
Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “We are operating in difficult times, which are demanding not only for us, but for all our stakeholders. The scale of the epidemiological situation at the global level is uncertain also from a macroeconomic point of view, financial markets are volatile and affected by low/negative interest rates, while a highly competitive environment dominates the markets. In this environment, we remain focused on the guidelines of our strategy, which we are implementing consistently. We assess that the Group is financially sound, reliably manages risks, operates profitably, and is gradually and effectively being digitally transformed.”
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.
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.