Notice of the 46th General Meeting of Shareholders
The Company’s Management Board hereby convenes the 46th General Meeting of Shareholders of Zavarovalnica Triglav d.d., to be held on 25 May 2021 at 9:00 a.m. in the hall Marmorna dvorana at Gospodarsko razstavišče, d.o.o., Dunajska cesta 18, 1000 Ljubljana.
More information available in draft resolutions and other material for the General Meeting of Shareholders.
Proposed dividend for Zavarovalnica Triglav shareholders
The Management Board and the Supervisory Board of Zavarovalnica Triglav will propose to this year's General Meeting of Shareholders that part of accumulated profit be distributed for dividend payment, unless the Insurance Supervision Agency opposes this proposal by the time the General Meeting of Shareholders is convened. Due to the uncertain consequences of the pandemic for the economy, the Insurance Supervision Agency expects insurance companies to suspend dividend payments until the end of September this year, unless they demonstrate guaranteed solvency, sufficient liquidity and profitability in compliance with the precautionary principle. Both the Management Board and the Supervisory Board assess that the bases for the dividend payment are appropriate and thus, in accordance with the Company’s dividend policy, propose a dividend of EUR 1.70 gross per share. The total amount of dividends of EUR 38,649,751.60 will represent 53% of the Company’s consolidated net profit for 2020 and a 5% dividend yield.
The Management Board and the Supervisory Board propose to this year's General Meeting of Shareholders to pay a dividend of EUR 1.70 gross per share (in the total amount of EUR 38,649,751.60) or 53% of consolidated net profit for 2020, which is in line with the dividend policy. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “We are pleased to be able to again propose a payment of dividends to our shareholders. We have developed a dividend policy, which is attractive for the shareholders and sustainable for the development and growth of Triglav Group. We aim to implement it as such, while acting in compliance with the positions of the Insurance Supervision Agency. The proposal of the Management Board and the Supervisory Board has taken all of the above into account.”
In accordance with the law, shareholders will decide on the distribution of the Company’s accumulated profit as at 31 December 2020, which also includes net profit brought forward from the previous year. The Management Board and the Supervisory Board formulated a proposal for the dividend payment in accordance with the dividend policy. They believe that the proposal will continue to ensure the financial stability of Triglav Group and its target growth and development, while ensuring a 5% dividend yield to the shareholders, which is one third more than the average of the European insurance sector. Their proposal took into account the expectations of the Insurance Supervision Agency that the dividend payment be suspended until the end of September this year, but exceptions are allowed if an insurance company demonstrates compliance with the precautionary principle in terms of solvency, liquidity and profitability.
The Company is expected to announce the convening of the regular General Meeting of Shareholders on 22 April 2021, scheduled to take place on 25 May 2021. The Company will take into account the situation as well as the guidelines and measures adopted by competent institutions.
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 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%.
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.