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Premium and profit growth and an improved estimate of this year's profit

Triglav Group adopts its business plan for 2022

In the first nine months of 2021, Triglav Group achieved a 10% growth in consolidated gross written premium (EUR 1.06 billion) compared to the same period last year and a 21% increase in the volume of assets managed in mutual funds and discretionary mandate assets (to EUR 1.4 billion) compared to the 2020 year-end. 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. Triglav Group is expected to exceed the annual profit initially planned, which will presumably range between EUR 115 and 125 million taking into account the business conditions anticipated by the end of the year. 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 the combined ratio of below 93%. Triglav Group revised its strategy to 2025, while preserving its existing key guidelines and further upgrading it in terms of development activities.

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. Gross claims paid were affected by the growth of the insurance portfolio over several years and major CAT events, which, however, did not reach extreme levels in the first nine months of 2021. The Group’s claims segment continued to be affected by the COVID-19 pandemic, resulting in a lower frequency of claims in some insurance classes and an increased volume of claims in others due to last year’s disruption in some services. 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.

Sustainable development (ESG). Triglav Group follows its Commitment to sustainability (ESG), which it adopted at the end of last year. It systematically integrates environmental, social and governance 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.

Triglav Group business plan for 2022 . Triglav Group expects that its operations in 2022 will take place in a slightly improved, but still volatile and uncertain business environment. The greatest risks will continue to stem from the epidemic, and the region's markets will remain highly competitive and dynamic. In such a situation, the 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. An increase in the volume of claims is expected due to the growth of the insurance portfolio and other factors, while with regard to major CAT events, similar trends as in previous years are expected. In 2022, we also anticipate a favourable impact of claims provisions that were conservatively formed in previous years. In operations, we will pay attention to cost streamlining; we are mainly planning an increase in acquisition costs, costs of digitalisation and investments in information technology. Our dividend policy remains unchanged and we will strive to make the ZVTG share a profitable, safe and stable investment for investors. The quality and uniformity of client experiences via various distribution channels will continue to be the basic guideline of our development activities in 2022. Finally, as a team of employees at the Group level we will continue to work together to upgrade the company’s culture, which is one of the foundations for the further development and achievement of Triglav's strategic guidelines.«

The revised Triglav Group strategy to 20251. Key guidelines of the existing strategy were not changed, but upgraded to reflect the goals of growth and development and the client-centric approach. To this end, the Group is continuing with digital transformation and the development of service-oriented business models and ecosystems that address interrelated client needs. The operations of Triglav Group, the leading insurance-financial group in the Adria region, are planned to remain profitable and safe. 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. By being committed to business sustainability, the Group remains a development-oriented environment for its employees, connected with its partners, and a stable, safe and profitable investment for investors.


 
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