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Triglav Group Business Plan for 2021

In anticipation of challenging market conditions and an uncertain business environment due to the epidemic

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%. The Group will operate in difficult and competitive market conditions impacted by the epidemiological situation at the global level, the scale of which still remains uncertain, while the financial markets will be affected by low/negative interest rates. With respect to development activities, the Group will pursue its vision to dynamically develop new ways of doing business by employing a client-centric approach as the foundation of the Group’s responsible long-term development, while at the same time operating profitably and safely.

The Group’s strategic guideline remains achieving long-term, stable economic profitability and increasing its value, thus pursuing its mission – Building a safer future for all its stakeholders. Within the Group, employee development and building a cooperative and agile organisation and culture remain the main guidelines. By focusing on the clients and their needs, the Group will continue with development activities aimed at achieving high-quality services, technologically advanced sales processes and an efficient sales network by using an omni-channel communication approach to clients.

The Group plans to increase the volume of premium, which, together with other factors, will also affect the claims segment. With regard to major CAT events, similar trends as in previous years are expected and, therefore, its prudently selected reinsurance protection will be maintained. Cost-effectiveness will remain the Group’s focus in 2021. To this end, the Group will continue to streamline the costs not directly related to insurance acquisition. In parallel, the costs related to investment in information technology and activities connected to the Group’s continued digital transformation are expected to increase. Considering the aforementioned and backed by underwriting discipline, the Group plans to maintain the profitability of its insurance business in its markets.

The investment policies of the Group remain unchanged and their goal is to achieve a high credit rating of the entire investment portfolio. With regard to asset management, the Group will follow the strategic objective of increasing the volume of assets under management by selling existing savings and insurance products as well as increasing the assets of investment funds managed by its subsidiary Triglav Skladi. Furthermore, the goal in 2021 is to maintain the existing high credit ratings assigned by the renowned credit rating agencies S&P Global Ratings and AM Best.

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. We assess that the Group is financially sound, reliably manages risks, operates profitably, and is gradually and effectively being digitally transformed. With respect to the business result, profit before tax of EUR 85-95 million is planned for the next year according to the probable scenario of the foreseen situation.” Mr Slapar further pointed out: “In this environment, we remain focused on the guidelines of our strategy, which we are implementing consistently. I would like to thank the team of over 5,000 employees for their cooperation and effort so far.”

The key highlights of the Triglav Group Business Plan for 2021 are attached.

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