1
The Triglav Group and Zavarovalnica Triglav d.d.
Audited Annual Report for the Year Ended 31 December 2024
MANAGEMENT BOARD:
President:
Andrej Slapar
Members:
Uroš Ivanc
Tadej Čoroli
Marica Makoter
Blaž Jakič
Ljubljana, 11 March 2025
2
Business Report
1.
Address by the President of the Management Board
5
2.
Triglav Group and Zavarovalnica Triglav in 2024
7
3.
Report of the Supervisory Board
17
4.
Triglav Group strategy and plans
27
5.
Corporate Governance Statement
42
6.
The share and shareholders of Zavarovalnica Triglav
61
7.
Macroeconomic environment and market trends
70
8.
Operations of the Triglav Group and Zavarovalnica Triglav
80
9.
Risk management
105
10. Sustainability report
120
11.
Digital Operational Resilience Report
208
Accounting Report
Statement of management
s responsibilities
213
1.
Financial statements
223
2.
Notes to the financial statements
229
3.
Notes to the specific significant items in the financial statements
328
4.
Other information
427
Appendix
1.
Triglav Group as at 31 December 2024
438
2.
Business network of the Triglav Group
443
3.
Glossary of terms
445
4.
Alternative performance measures
450
5.
The list of ESRS disclosure requirements included in the sustainability statement
452
6.
The list of datapoints in cross-cutting and topical standards that derive from other EU
legislation
455
7.
GRI, SASB in SDG Content Index
463
3
4
Credit rating
of the Triglav Group
Positive medium-term outlook
(S&P Global)
Stable medium-term outlook
(AM Best)
"A"
Total revenue in EUR million
Total business volume in EUR million
Combined ratio Non-Life and Health of the Triglav Group
Return on equity of the Triglav Group
Earnings before tax in EUR million
101.9%
around 95%
1,452.2
1,393.2
1,005.8
940.3
2023
2024
Triglav Group
Zavarovalnica Triglav
1,738.0
around 1,600
1,717.6
1,251.6
1,134.1
2023
2024 plan
2024
Triglav Group
Zavarovalnica Triglav
21.1
130 - 150
159.0
15.8
117.6
2023
2024 plan
2024
Triglav Group
Zavarovalnica Triglav
1.8%
14.0%
2023
2024
76.3%
65.5%
25.6%
28.1%
2023
2024 plan
2024
Claims ratio
Expense ratio
93.6%
5
1.
Address by the President of the Management Board
Dear Shareholders and Readers,
This has been a year of strong performance. The Triglav Group consistently pursued its strategic
ambitions, achieved its business objectives, and benefited from favourable financial market
conditions and relatively favourable claims development, further reinforcing its strong results.
Excellent performance was recorded across all business segments, significantly exceeding
expectations. Importantly, the Group remains
financially robust, as reaffirmed by its high "A" credit
rating, with S&P Global upgrading its outlook from stable to positive.
Earnings before tax amounted to EUR 159 million, while net earnings reached EUR 131 million.
Strong results in insurance, reinsurance and asset management, alongside one-off events –
particularly in health insurance – contributed to this achievement. Despite ongoing uncertainty
surrounding inflationary expectations and a highly competitive market, the Group further
strengthened its dominant position in the insurance market both in Slovenia and the Adria
region.
The Group remained focused on maintaining the resilience of its business model, enabling
adaptability to environmental challenges. It continued to pursue prudent underwriting while
carefully maintaining targeted asset-liability matching. The Group remains well-capitalised,
further reinforced by profitable operations and the successful issuance of a new subordinated
bond. The Group's net return on equity stood at favourable 14%.
Insurance and asset management
The Group's total business volume reached EUR 1.72 billion, exceeding the target of
approximately EUR 1.60 billion. Consolidated gross written premium amounted to EUR 1.62
billion, reflecting a 2% year-on-year decline due to the termination of supplemental health
insurance in Slovenia. Excluding this impact, premium growth would have been 10%. Client
insurance coverage increased, supported by various underwriting risk management measures.
Business volume also benefited from past premium rate increases and higher sales of insurance
under the principle of free movement of services (FOS).
In line with the Group's target geographical diversification, the share of premium written
outside Slovenia increased. The Slovenian market accounted for 56% of total written premium,
with a 6% increase, including the impact of the Health segment. In other Adria region markets,
premium growth reached 9%, while in international markets, where the Group operates
primarily under the FOS principle and conducts inward reinsurance business, growth stood at
21%.
The Group's combined ratio of 93.6% outperformed expectations, driven by an improved claims
ratio. Claims development in 2024 remained relatively favourable, even in the context of mass
CAT events.
The Group achieved strong and profitable performance across all insurance segments. In the
Health segment, the business model in Slovenia was restructured, including the merger of the
health insurance subsidiary into the parent company. This restructuring aimed to support
continued premium growth, ensure adequate claims management and rationalise costs. The
Group's key strategic guidelines and ambitions for the Health segment remain unchanged,
reaffirming its position as one of the core development segments.
Favourable financial market conditions contributed to strong performance in the Asset
Management segment. Net assets under management for clients in mutual funds and through
discretionary mandate services grew by 33% to EUR 2.3 billion, driven by rising equity market
prices and strong net inflows.
6
In line with investment policies, the conservative structure and quality of the Group's investment
portfolio – which grew by 15% to EUR 3.9 billion – remained largely unchanged. Bonds in
developed markets, most of which have a high credit rating, constitute the majority of the total
investment portfolio.
Implementation of the dividend policy by paying out dividends
Our aim is to ensure that the ZVTG share remains an attractive, secure and stable investment
option for investors. In 2024, its total return was 21% and its dividend yield was 4.0%. A dividend
was paid to shareholders, significantly exceeding the Group's 2023 net earnings. The objectives
of the dividend policy were consistently pursued and maintained, considering the unique
operating environment in 2023 and the improved outlook for 2024. These objectives have been
achieved.
Strategic ambitions for 2030
Strategic objectives for 2025 were met, and in some cases, exceeded. The Group's operations
remain profitable, safe and sustainable. Return on equity surpassed the 10% target in 2024.
Business volume, despite a shortfall in the Health segment, is above target, with the share of
premium written outside Slovenia continuing to grow steadily. Client experience in
underwriting and after-sales activities was enhanced through a client-focused approach. At
Group level, we expanded the range of products and services, digitalised processes, efficiently
managed sales channels and strengthened strategic partnerships. Client and employee
satisfaction remain key performance indicators, with results reflecting a high level of
achievement even in recent challenging years.
Looking ahead to 2030, the Group has set an ambitious strategy that considers environmental
challenges, changes and opportunities. As part of its mission of
Building a Safer Future
, the
Group will continue to enhance its profile as an international insurance and financial group,
aligning with its new vision. Its ambition is to double earnings by 2030 and drive growth in
markets outside Slovenia. With a client-focused approach, the Group will continue its
digitalisation and strengthen existing strategic approaches to address evolving client and
market needs.
The goal is to bring together engaged, collaborative and entrepreneurial
employees, united by shared values.
Sustainable development at the core of our activities
The Group continues to deliver on its sustainability ambitions and support the transition to a
climate-neutral and climate-resilient economy. Some of this year's achievements include:
Increasing the share of ESG bonds in our investment portfolio by two percentage points,
reaching 13%. Transforming all mutual funds in Slovenia into funds promoting environmental
and social characteristics, in line with the SFDR. Expanding our range of services and products
that promote social and environmental benefits. Reducing the Group's Scope 1 and 2 carbon
footprint by 12% and increasing the share of electricity from renewable sources by 4 percentage
points, reaching 66%. Maintaining high corporate governance standards and fostering a culture
of diversity, equality and inclusion. Remaining closely connected to our social environment,
participating in a wide range of socially and environmentally responsible projects. Additionally,
we upgraded our sustainability reporting, which has followed the international GRI guidelines
since 2009, further aligning it with additional standards and targets, such as SASB and SDGs.
This year, we took a significant step forward by aligning our sustainability disclosures with the
CSRD and ESRS.
On behalf of the Management Board and all the Triglav Group employees, I sincerely thank you
for your trust in us.
Andrej Slapar
President of the Management Board of Zavarovalnica Triglav
7
2.
Triglav Group and Zavarovalnica Triglav in 2024
-
The Triglav Group's performance was strong and profitable across all segments.
-
Taking into account the effects in the Health segment, the Group increased its business
volume and maintained its financial strength and high "A" rating, with S&P Global
upgrading its outlook from stable to positive.
-
Its leading position in the insurance sector was strengthened both in Slovenia and the Adria
region.
2.1
Financial highlights of the Triglav Group*
in EUR million
2024
2023
Index
Total business volume
1,717.6
1,738.0
99
Gross written premium
1,622.3
1,663.7
98
Other income
95.4
74.3
128
Total revenue
1,393.2
1,425.2
98
Insurance operating result
97.5
-7.1
Insurance revenue
1,298.0
1,351.2
96
State compensation pursuant to the Decree on supplemental health
insurance premium
11.0
0.0
Claims incurred
678.7
1,021.2
66
Acquisition and administrative costs including non att. costs
370.9
358.0
104
Net reinsurance service result
-140.9
31.6
Net other insurance revenue and expenses
-20.9
-10.6
197
Net investment result
49.0
22.2
220
Investment result
159.7
83.8
191
Financial result from insurance contracts
-118.5
-69.7
170
Change in provisions for not achieving the guaranteed yield
0.9
8.1
11
Gains/losses and impairments of investments in associates
6.9
0.0
Result from non-insurance operations
12.5
5.9
213
Earnings before tax
159.0
21.1
755
Net earnings
131.4
16.3
808
Other comprehensive income
6.3
34.7
18
Combined ratio Non-Life and Health
93.6%
101.9%
-8.3 p.p.
Claims ratio Non-Life and Health
65.5%
76.3%
-10.8 p.p.
Expense ratio Non-Life and Health
28.1%
25.6%
2.5 p.p.
New business margin Life
13.4 %
14.6%
-1.2 p.p.
Annualised return on equity
14.0%
1.8%
12.2 p.p.
Return on financial investments
3.0%
1.6%
1.4 p.p.
31 Dec 2024
31 Dec 2023
Index
Balance sheet total
4,538.3
4,099.0
111
Equity
989.0
891.1
111
Contractual service margin (CSM)
286.8
238.4
120
Assets under management (AUM)
5,893.8
4,851.4
121
Number of employees
5,204
5,318
98
Number of employees (full-time equivalent)
5,088
5,190
98
* * The figures for the comparative period differ from those reported for the previous year due to a change in the definition of the Health segment and non-insurance
operations (see Section
2.9 of the Accounting Report
for further information).
The impact of discontinued operations is discussed in greater detail in Section
3.7.6
of the Accounting Report
.
The breakdown of profit or loss in the Business Report (comprising insurance operating result, net investment result, result from non-insurance
operations) differs from that of the statement of profit and loss in the Accounting Report (comprising insurance service result, investment result,
financial result from insurance contracts and other profit or loss categories). The presentation of the insurance operating result also takes into account
non-attributable costs, insurance revenue, insurance service expenses, net other insurance revenue and insurance service expenses, and state
compensation under the Decree on setting the maximum price of the supplemental health insurance premium. Furthermore, the net investment result
includes the financial result from insurance contracts, change in provisions for not achieving the guaranteed yield, gains/losses on investments in
associates and impairment of investments in associates, in addition to the investment result. Other categories are included in the result from non-
insurance operations.
8
2.2
Financial highlights of Zavarovalnica Triglav*
in EUR million
2024
2023
Index
Total business volume
1,134.1
1,215.6
93
Gross written premium
1,104.8
1,189.7
93
Other income
29.3
26.0
113
Total revenue
940.3
1,005.8
93
Insurance operating result
84.4
-10.6
Insurance revenue
911.1
985.6
92
State compensation pursuant to the Decree on supplemental health
insurance premium
11.0
0.0
Claims incurred
420.8
770.0
55
Acquisition and administrative costs including non att. costs
266.0
257.3
103
Net reinsurance service result
-130.7
39.5
Net other insurance revenue and expenses
-20.2
-8.3
242
Net investment result
33.8
24.9
136
Investment result
134,.9
67.1
201
Financial result from insurance contracts
-110.1
-62.9
175
Change in provisions for not achieving guaranteed yield
0.0
4.3
0
Gains/losses and impairments of investments in associates
9.0
16.3
55
Result from non-insurance operations
-0.6
1.5
Earnings before tax
117.6
15.8
746
Net earnings
98.2
14.2
691
Other comprehensive income
0.7
33.3
2
Combined ratio
92.0%
102.8%
-10.6 p.p.
Claims ratio
63.1%
77.7%
-14.5 p.p.
Expense ratio
29.1%
25.1%
4.0 p.p.
New business margin Life
14.6%
13.9%
0.7 p.p.
Annualised return on equity
13.8%
2.1%
11.7 p.p.
Return on financial investments
2.8%
2.2%
0.6 p.p.
31 Dec 2024
31 Dec 2023
Index
Balance sheet total
3,273.8
2,998.9
109
Equity
741.6
682.5
109
Contractual service margin (CSM)
271.4
225.5
120
Number of employees
2,223
2,349
95
Number of employees (full-time equivalent)
2,197
2,315
95
* The effects of the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav on 1 October 2024 are explained in more detail in
Section 2.7 Merger of
the subsidiary Triglav, Zdravstvena zavarovalnica in the Accounting Report.
Zavarovalnica Triglav's figures for 2023 are adjusted and include the data of the merged
company Triglav, Zdravstvena zavarovalnica. The impact of discontinued operations is discussed in greater detail in Section
3.7.6 of the Accounting Report.
Alternative performance measures and a
glossary of key terms are provided in the
appendix to the Annual Report.
9
2.3
Environmental, social and governance (ESG) aspects of the Triglav Group's operations
2024
2023
Index
1. Environmental aspects
Carbon footprint
(tonnes of CO2 equivalent)*
7,038
7,992
88
Scope 1 and 2 carbon footprint per employee (tonnes of CO2 equivalent)*
1.34
1.51
89
Electricity consumption (MWh)
9,420
10,342
91
Share of electricity consumption from renewable sources (%)
66
62
107
Written premium from products promoting social and environmental benefits (EUR million)
22.9
25.0
92
Assets under management in funds that incorporate sustainability aspects (EUR million)
1,977.3
1,139.0
174
Investments in social impact, green and sustainable bonds (EUR million)
339.4
262.5
129
2. Social aspects
Employee satisfaction (ORVI)
3.97
3.94
101
Average employee age
45.1
45.1
100
Women employees to total employees ratio (%)
55.7
55.0
101
Employee turnover (number of leavers/average number of employees; %)
16.5
12.0
138
Average number of training hours per employee
31
27
116
Lost time incident rate – LTIR (number of work-related incidents/total number of hours of all
employees x 1,000,000)
0.96
1.88
51
Client satisfaction of Triglav Group (NPS)**
70
73
97
Investments into the community (prevention, donations, sponsorships) (EUR million)
9.5
8.9
107
3. Governance aspects
Proportion of women in the management board/supervisory board in parent company (%)
20.0/37.5
20.0/25.0
Proportion of women at the first management level under the management board (%)
45.7
44.6
102
Proportion of women in management and supervisory bodies (%)
26.4
26.7
99
Average age of Zavarovalnica Triglav Management Board members
48.8
47.8
102
Independence of Zavarovalnica Triglav Supervisory Board members, shareholder representatives (%
of members)
100
100
100
Term of office of the current President of the Management Board (years)
11
10
110
Policies adopted: equal opportunities policy, anti-corruption policy, employee
protection/whistleblower protection policy
YES
YES
Fair business practices (number of fraud cases investigated)
1,756
1,771
99
Internationally renowned audit firm (Big 4)
YES
YES
Period of cooperation with the existing auditor (years)
6
5
120
Investor relations when publishing results
YES
YES
Economic value generated (EUR million)
1,712.9
1,642.4
104
Economic value distributed (EUR million)
1,621.3
1,682.9
96
Economic value retained (EUR million)
91.7
-40.5
* Includes Scope 1 and 2 emissions under the location-based method. A more detailed calculation of Scope 1 and 2 GHG emissions is shown in Section
10.2.1.1 The
Triglav Group's carbon footprint
.
** NPS shows the share of promoters who would recommend the Company to their acquaintances and friends based on experience.
For additional information about this report please contact:
Zavarovalnica Triglav d.d., Ljubljana
Miklošičeva cesta 19, 1000 Ljubljana
Blaž Kmetec, Executive Director of Finance and Controlling
Email:
blaz.kmetec@triglav.si
10
2.4
Significant events in 2024
▪
Strong performance:
At the half-year mark, the Triglav Group had revised its annual profit
guidance upwards, driven by one-off events in addition to strong performance across all
segments. Sustaining its strong performance in the second half of the year, the Group
exceeded its year-end earnings before tax estimate (see Section
8. Operations of the Triglav
Group and Zavarovalnica Triglav
for more information).
▪
Dividend payment:
At the May General Meeting of Shareholders, the shareholders adopted
the resolution proposed by the Management Board and the Supervisory Board to pay a
dividend of EUR 1.75 gross per share or EUR 39.7 million in total, representing a 5% dividend
yield. See Section
6.4 Dividends and dividend policy
for more information.
▪
The high "A" credit rating affirmed:
The credit rating agencies S&P Global and AM Best
affirmed the high "A" credit rating with a stable medium-term outlook of the Triglav Group
(and thereby of Zavarovalnica Triglav and the subsidiary Pozavarovalnica Triglav Re). In
December 2024, S&P Global
upgraded its outlook from stable to positive
.
See Section
6.6
Credit rating of the Triglav Group and Zavarovalnica Triglav
for more information.
▪
Corporate governance:
The General Meeting of Shareholders appointed Barbara Nose and
Rok Ponikvar as new Supervisory Board members – shareholder representatives. The
President of the Management Board, Andrej Slapar, along with Management Board
members Uroš Ivanc and Tadej Čoroli, commenced a new five-year term of office. See
Section
5.3 Management bodies of Zavarovalnica Triglav
for more information.
▪
Business optimisation of the Health segment:
To simplify and optimise operations in the
Health segment on the Slovenian market, Zavarovalnica Triglav acquired the subsidiary
Triglav, Zdravstvena zavarovalnica. The merger was entered in the register of companies on
1 October 2024. See Section
2.7 Merger of the subsidiary Triglav, Zdravstvena zavarovalnica
of the Accounting Report for more information
.
▪
The Triglav Group's upgraded strategy:
The Triglav Group Strategy for 2025–2030 was
adopted at the end of the year. It is ambitious and focuses on ensuring profitable, safe and
sustainable operations. See Section
4. Triglav Group strategy and plans
for more
information.
▪
Issue of a subordinated bond:
As part of the Triglav Group's regular capital management
activities, Zavarovalnica Triglav issued a subordinated bond in July 2024 with a nominal
value of EUR 100 million, maturing in 20.5 years. See Section
6.7 Bonds
for more information.
11
2.5
Financial calendar 2025
Calendar of financial announcements for 2025
Date of announcement*
Time
Type of announcement
Quiet period**
Thursday, 6 March 2025
8:30
Preliminary key figures for 2024
From Thursday, 13 February
2025
Monday, 31 March 2025
8:30
Audited annual report for 2024
From Monday, 17 March
2025
Thursday, 24 April 2025
Call notice of the General Meeting of Shareholders to decide on the
distribution of accumulated profit
Wednesday, 21 May 2025
8:30
January–March 2025 interim financial report
From Wednesday, 7 May
2025
Tuesday, 3 June 2025
General Meeting of Shareholders and announcement of its
resolutions
Wednesday, 20 August 2025
8:30
January–June 2025 interim financial report
From Wednesday, 6 August
2025
Wednesday, 19 November
2025
8:30
January–September 2025 interim financial report
From Wednesday, 5
November 2025
* These are planned dates, which may differ from the actual dates.
** The quiet period denotes a period preceding the announcement of a financial report, during which Zavarovalnica Triglav does not disclose any
information on current operations to the public.
The general public is informed about the dates of key announcements and about any
amendments to the planned time of announcement:
▪
in the Ljubljana Stock Exchange SEOnet information system (
seonet.ljse.si
) and
▪
on Zavarovalnica Triglav's corporate website (
www.triglav.eu
).
12
2.6
Activities, markets and position of the Triglav Group
The Triglav Group is the leading insurance and financial group in Slovenia and the Adria region as well as one of the leading groups in South-East
Europe. The Group also operates in the wider international environment, mainly through partnerships with foreign insurance brokerage and agency
companies as well as with reinsurers. Its key markets in the Adria region and its two core activities are shown below.
Strategic activities
Insurance
Asset management
Non-Life
Own insurance portfolio
(asset backing liabilities and
backing funds)
Life
Health
Mutual funds and individual
asset management
Reinsurance
Pension funds
Slovenia
Serbia
Croatia
Bosnia and
Herzegovina
Montenegro
North
Macedonia
International
insurance and
reinsurance
1st place
40.8%
market share*
(+1.3 p.p.)
5th place
7.7%
market share*
(+0.2 p.p.)
8th place
4.8%
market share*
(–0.4 p.p.)
5th place
8.3%
market share*
(–1.0 p.p.)
1st place
34.6%
market share*
(–0.4 p.p.)
3rd place
13.8%
market share*
(+0.4 p.p.)
2,621
employees
818
employees
567
employees
537
employees
378
employees
283
employees
EUR 990 million
total business volume
(
11%)
EUR 117 million
total business volume
(+19%)
EUR 93 million
total business volume
(+1%)
EUR 52 million
total business volume
(+1%)
EUR 51 million
total business volume
(+11%)
EUR 38 million
total business volume
(+15%)
EUR 377 million
total business volume
(+21%)
The figure illustrates the market share of the insurance business in each market. Data for Serbia represent the period from January to September 2024.
13
2.6.1
Insurance
The insurance activity
includes non-life, health and life insurance, as well as reinsurance.
The Group's insurance business comprises:
▪
in Slovenia:
Zavarovalnica Triglav d.d. and Pozavarovalnica Triglav Re d.d.;
▪
outside Slovenia:
seven insurance companies in the Adria region (Croatia, Serbia,
Montenegro, Bosnia and Herzegovina, and North Macedonia), Zavarovalnica Triglav d.d's
branch in Greece (under the FOE principle) and business partnerships under the principle of
free movement of services (FOS).
Insurance market position in the Adria region and South-East Europe
The Triglav Group strengthened its dominant market position in
the Adria region
(Slovenia,
Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia). According to the
latest available data for 2023, it increased its market share by 0.1 percentage points to 21.8%.
The market share of insurance groups and insurers in the Adria region in 2023 and 2022*
* Data for 2024 not yet available.
Source: Zavarovalnica Triglav's calculation based on the data of national insurance supervision agencies and insurance associations
Zavarovalnica Triglav, the Group's parent company, is the leader among the insurers in
South-
East Europe
(Albania, Bulgaria, Bosnia and Herzegovina, Montenegro, Croatia, Moldova,
Romania, North Macedonia, Slovenia and Serbia). The Romanian insurers Groupama Asigurari
and Allianz – Tiriac Asigurari again ranked second and third. Eight insurance companies of the
Triglav Group ranked among the top 100 insurers in South-East Europe in terms of gross written
premium. All 100 insurers collectively recorded a total written premium of EUR 12.4 billion, up
by 17% compared to the previous year.
2.2%
3.4%
3.4%
4.0%
5.3%
4.9%
6.6%
7.7%
8.0%
8.3%
13.2%
21.7%
2.2%
3.4%
3.5%
4.1%
4.4%
5.1%
6.0%
7.7%
8.3%
9.0%
12.9%
21.8%
Modra zavarovalnica
Allianz
Uniqa
Grawe
Vzajemna
Dunav
VIG
Croatia Group
Agram
Sava insurance Group
Generali
Triglav Group
2023
2022
14
The largest insurers in South-East Europe by written premium in 2023 (million EUR)
Source: SeeNews 2024.
2.6.2
Asset management
The asset management activity
at the Triglav Group comprises the management of the parent
company's insurance portfolios (assets backing liabilities and guarantee funds), clients' pension
savings through the insurance services of the Group's insurance and pension companies, asset
management by asset management companies and the management of clients' assets in
mutual funds and discretionary mandate assets. See Section
8.4 Asset management
for more
information on asset management and Section
7.5 Asset and investment fund management
market in Slovenia
for the situation of the asset management market in Slovenia.
225.9
228.8
248.0
256.1
289.3
311.0
322.1
344.8
385.5
478.8
512.6
538.1
702.0
821.5
982.8
Euroins
Euroherc Osiguranje
Generali Osiguranje Srbija
Lev Ins
Generali Romania
Vzajemna Zdravstvena Zavarovalnica
Asirom VIG
Dunav Osiguranje
Croatia Osiguranje
Omniasig VIG
Generali Zavarovalnica
Zavarovalnica Sava
Allianz
- Tiriac Asigurari
Groupama Asigurari
Zavarovalnica Triglav
15
2.6.3
Composition of the Triglav Group
As at 31 December 2024, the Triglav Group comprised 54 companies: the parent company, 31 subsidiaries, 12 associates and 10 joint ventures.
The Triglav Group members and their participating interests as at 31 December 2024
16
The changes in the Group are discussed in greater detail in Section
2.1.4.5 of the Accounting
Report.
2.7
Management of Zavarovalnice Triglav
The Management Board of Zavarovalnica Triglav comprises:
▪
Andrej Slapar, President
The period from the first appointment to the end of the current term of office: 2013–2029
Employed at the Triglav Group: from 1997
▪
Uroš Ivanc, Member
The period from the first appointment to the end of the current term of office: 2014–2029
Employed at the Triglav Group: from 2001
▪
Tadej Čoroli, Member
The period from the first appointment to the end of the current term of office: 2014–2029
Employed at the Triglav Group: from 2001
▪
Marica Makoter, Member
The period from the first appointment to the end of the current term of office: 2011–2026
Employed at the Triglav Group: from 2001
▪
Blaž Jakič, Member
The period from the first appointment to the end of the current term of office: 2023–2028
Employed at the Triglav Group: from 2010.
17
3.
Report of the Supervisory Board
Report of the Supervisory Board of Zavarovalnica Triglav d.d. on the verification of the Annual
Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024
and
Opinion of the Supervisory Board of Zavarovalnica Triglav d.d. on the Annual Internal Audit
Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024
In 2024, the Supervisory Board of Zavarovalnica Triglav d.d. diligently and responsibly fulfilled
its supervisory role, ensuring high-quality oversight of the operations of Zavarovalnica Triglav
d.d. and the Triglav Group. It oversaw various aspects of their operations and development, and
on that basis took appropriate decisions and followed up on their implementation. Individual
topics were initially reviewed by the Supervisory Board's committees, whose findings and
proposals supported well-informed and prudent decision-making. The Supervisory Board also
monitored the implementation and execution of the Triglav Group's strategy and actively
participated in the formulation and adoption of the new strategy.
The Supervisory Board performed its work within the scope of its powers and competencies set
out by law, the Company's Articles of Association and its own Rules of Procedure.
1.
INTRODUCTION
Pursuant to Article 282 of the Companies Act and Article 69 of the Insurance Act, the Supervisory
Board hereby presents its Report on the verification of the Annual Report of the Triglav Group
and Zavarovalnica Triglav d.d. for 2024 (hereinafter: the report) and its Opinion on the Annual
Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024.
The findings are based on the results of the supervision of operations of Zavarovalnica Triglav
d.d. (hereinafter: the Company, the controlling company or the parent company) in 2024 and on
the verification of the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d.
for 2024.
An integral part of the report is also the opinion of the Supervisory Board on the work of the
Internal Audit Department in 2024 and the Annual Internal Audit Report of the Internal Audit
Department of Zavarovalnica Triglav d.d. for 2024.
2.
GENERAL INFORMATION
The Supervisory Board and its committees in 2024
The composition of the Supervisory Board in 2024 is described in Section
5. Corporate
Governance Statement (Supervisory Board) of the Business Report.
In 2024, the Supervisory Board
held nine sessions and had four committees: the Audit Committee, the Appointment and
Remuneration Committee, the Strategy Committee and the Nomination Committee. In addition,
at its 7th/2024 meeting on 21 August 2024, it established the fifth committee, the Risk
Committee. The composition of the Supervisory Board committees in 2024 as well as the more
important duties and powers of individual committees are described in Section
5. Corporate
18
Governance Statement (Composition of Supervisory Board committees and their activities in 2024)
of the Business Report.
Audit Committee
In 2024, the Audit Committee held six meetings, at which it, among other things:
▪
Monitored and discussed financial reporting procedures and the external audit of the annual
financial statements of the Triglav Group and Zavarovalnica Triglav d.d.;
▪
Assessed the content of the Annual Report of the Triglav Group and Zavarovalnica Triglav
d.d. for 2023 and the 2024 interim reports;
▪
Took note of the management representation letter for Zavarovalnica Triglav d.d. and the
Triglav Group;
▪
Discussed the Solvency and Financial Condition Report of Zavarovalnica Triglav d.d. and the
Solvency and Financial Condition Report of the Triglav Group as at 31 December 2023,
including the independent auditor’s assurance reports;
▪
Discussed the Report on the Self-Assessment of the Effectiveness of Internal Controls in
Financial Reporting;
▪
Monitored the effectiveness of the Internal Audit Department;
▪
Took note of the Internal Audit Department's interim and annual reports, its annual work
plan for 2025 and its strategy for 2025–2030;
▪
Took note of the amendments to the Internal Audit Policy of Zavarovalnica Triglav d.d;
▪
Took note of remuneration of the director of Internal Audit Department for 2023;
▪
Monitored and discussed the risk management systems, the functioning of internal controls,
the Internal Audit Department's interim reports, recommendations, annual work plan for
2025 and guidelines for the 2026–2028 period;
▪
Discussed the findings of the Slovenian Insurance Supervision Agency and other supervisory
bodies in supervision procedures under the Audit Committee's responsibility and was briefed
on procedures related to these findings or requirements;
▪
Supervised and discussed the conclusion of agreements with audit firms, the independence
of the certified auditor, the quality of auditing, the audit plan for 2024 and the auditor's
report following the pre-audit of Zavarovalnica Triglav d.d. for 2024;
▪
Discussed risk reports of Zavarovalnica Triglav d.d. and the Triglav Group;
▪
Took note of the comparative analysis of capital adequacy of (re)insurance groups in the
European Union and (re)insurers in Slovenia;
▪
Took note of the proposal for stress and scenario tests, which show the potential risks of the
Group to be addressed within the own risk and solvency assessment (ORSA) process;
▪
Discussed the Compliance Office Annual Report for 2023;
▪
Discussed the Statement of Compliance with the Slovenian Corporate Governance Code;
▪
Monitored the operation of the information technology and cyber security area;
▪
Took note of and approved the Quality Monitoring Report of the External Auditor for
Zavarovalnica Triglav d.d. for 2023;
▪
Led the selection process for the statutory auditor for the financial years 2025–2028;
▪
Discussed the Status Report on the Implementation of ESG Reporting;
▪
Took note of the Sustainability-Related Double Materiality Assessment Methodology of
Zavarovalnica Triglav d.d. and the Triglav Group and the Report on the Results of the
Sustainability-Related Double Materiality Assessment Process for Zavarovalnica Triglav d.d.
and the Triglav Group;
▪
Discussed the Status Report on the Implementation of the Digital Operational Resilience Act
(DORA) Requirements;
▪
Adopted amendments to the Rules of Procedure of the Audit Commission.
19
The external expert Jernej Pirc provided his expertise and support to the work of the Audit
Committee in relation to information technology issues. The Audit Committee carried out a
performance self-assessment with the aim of ensuring the continued improvement and quality
of its work and adopted an action plan for the improvement of its performance.
Appointment and Remuneration Committee
The Appointment and Remuneration Committee held seven meetings in 2024. Its most
important activities included:
▪
Drawing up draft periodic fit and proper assessments of the members of the Management
Board and the Supervisory Board and of the two bodies as a whole;
▪
Preparing draft fit and proper assessments for Supervisory Board candidates, including the
external member of the Audit Committee and the newly appointed external member, as well
as for the body as a whole;
▪
Reviewing the calculation and amount of the average gross salary for 2024 in the Group
members which are headquartered in the Republic of Slovenia and were fully consolidated
by the Group pursuant to the Act Governing the Remuneration of Managers of Companies
with Majority Ownership Held by the Republic of Slovenia or Self-Governing Local
Communities (ZPPOGD);
▪
Discussing the adjustment of the basic salary of Management Board members and the
calculation of the variable part of remuneration of the Management Board members based
on the Group's performance;
▪
Approving the proposed amendments to the Methodology for determining the variable
remuneration and decreasing basic salary of Management Board members in 2025 and
setting the targets for the part of the salary for the performance of the Management Board
members for 2025;
▪
Discussing the report on the development of key promising staff at Zavarovalnica Triglav
d.d.;
▪
Discussing the succession evaluation report;
▪
Reviewing amendments to the Fit and Proper Policy for the Management Board and
Supervisory Board Members of Zavarovalnica Triglav d.d. and the Remuneration Policy of
Zavarovalnica Triglav d.d.;
▪
Discussing the Works Council's proposal for the removal of the Management Board member
– Worker Director and the proposal for an extraordinary fit and proper assessment of the
Management Board member – Worker Director.
Strategy Committee
The Strategy Committee, which held three meetings in 2024, devoted special attention to the
implementation and revision of the Triglav Group strategy for 2025–2029 and the starting
points for the development of the Triglav Group's business plan for 2025.
Risk Committee
The Risk Committee was established at the 7th/2024 Supervisory Board session, held on 21
August 2024. It met once in 2024. Its activities included:
▪
Adoption of the Rules of Procedure of the Risk Committee;
▪
Discussion of risk reports of Zavarovalnica Triglav d.d. and the Triglav Group as at 30
September 2024, including the findings of the ORSA process;
▪
Discussion of the updates of the main internal documents on risk management;
▪
Consideration of the Progress Report on the IT Project in Support of the Core Business, and
▪
Discussion of the implementation of the Business Intelligence Strategy.
20
Nomination Committee
The Nomination Committee was established on 29 November 2023 to carry out the nomination
process for appointing a candidate for Supervisory Board member – shareholder representative
to replace Igor Stebernak, whose term of office expired on 3 June 2024. Following the resignation
of Supervisory Board member Jure Valjavec, the Nomination Committee was tasked with
proposing two candidates for Supervisory Board membership. In 2024, the Nomination
Committee held five meetings and proposed two candidates for Supervisory Board members –
shareholder representatives, both of whom were subsequently appointed at the General
Meeting of Shareholders.
The Nomination Committee was re-established on 19 November 2024 to conduct the
nomination process for appointing two candidates for Supervisory Board members –
shareholder representatives, as the terms of office of Andrej Andoljšek and Tomaž Benčina on
the Supervisory Board will expire on 14 June 2025.
3.
WORK OF THE SUPERVISORY BOARD AND SCOPE OF SUPERVISION OF THE COMPANY'S
OPERATIONS IN 2024
The description of the Supervisory Board's operations and the scope of monitoring and
supervision of the governance of the Company and the Group in 2024 are based on the
supervision of the Company's and the Group's operations performed by the Supervisory Board in
2024, acting within its powers. The Supervisory Board held nine sessions in 2024.
The Supervisory Board's duty is to supervise how the Company conducts its business and to
perform other tasks in accordance with the Companies Act, the Insurance Act, the Company's
Articles of Association, the Rules of Procedure of the Supervisory Board and the Slovenian
Corporate Governance Code. The methods and organisation of its work are set out in the Rules
of Procedure of the Supervisory Board, which are published on the Company's website.
a) With regard to its core competences, in 2024 the Supervisory Board:
▪
Approved the Solvency and Financial Condition Report (SFCR) of Zavarovalnica Triglav d.d.
and the Triglav Group for 2023 and the annual capital adequacy as at 31 December 2023
and took note of the independent auditor’s assurance report;
▪
Adopted the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for
2023, the Report by the Supervisory Board of Zavarovalnica Triglav d.d. on the verification
of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023 and the
Opinion of the Supervisory Board of Zavarovalnica Triglav d.d. on the Annual Internal Audit
Report for 2023 of the Internal Audit Department of Zavarovalnica Triglav d.d.;
▪
Discussed unaudited interim financial reports of the Triglav Group and Zavarovalnica
Triglav d.d. for the periods from 1 January to 31 March 2024, from 1 January to 30 June
2024 and from 1 January to 30 September 2024;
▪
Approved the Internal Audit Department's work plan for 2025 and the Internal Audit
Department's strategy for 2025–2030;
▪
Discussed two half-yearly reports and the Annual Internal Audit Report of the Internal
Audit Department for 2023;
▪
Approved the Triglav Group's business policy and business plan for 2025 and took note of
the key findings of ORSA;
▪
Approved the new Triglav Group Strategy for 2025–2030;
▪
Proposed to the 49th General Meeting of Shareholders of Zavarovalnica Triglav d.d. to
grant a discharge to the Management Board for 2023, submitted a proposal on the
distribution of accumulated profit, presented the
remuneration policy and the
21
remuneration report for 2023, and acknowledged the resignation letter of a Supervisory
Board member, the expiry of a Supervisory Board member’s term of office and the
appointment of new Supervisory Board members;
▪
Discussed the findings of the Insurance Supervision Agency and other supervisory bodies
in supervision procedures and was briefed on procedures related to these findings or
requirements;
▪
Approved the amendments to the Governance System and Policy of Zavarovalnica Triglav
d.d., the Actuarial Function Policy, the Outsourcing Policy, the Remuneration Policy of
Zavarovalnica Triglav d.d., the Internal Audit Policy of Zavarovalnica Triglav d.d. and the
Compliance Policy of Zavarovalnica Triglav d.d.;
▪
Discussed the Statement of Compliance with the Slovenian Corporate Governance Code
and took note of the positions on the Corporate Governance Code for Companies with
Capital Assets of the State and the Recommendations and Expectations of the Slovenian
Sovereign Holding.
b) With regard to the supervision of the management of the Company's operations, in 2024 the
Supervisory Board:
▪
Discussed the reports of the Audit Committee, the Appointment and Remuneration
Committee, the Strategy Committee, the Nomination Committee and the Risk Committee,
and was briefed on the financial reports of Zavarovalnica Triglav d.d., the Triglav Group and
Zavarovalnica Triglav's subsidiaries;
▪
Took note of the implementation of the Triglav Group strategy;
▪
Monitored the assessed performance indicators of the Company in each period, capital
adequacy, the implementation of the business plan and potential measures;
▪
Took note of risk reports, the Risk Underwriting and Management Strategy, the Risk
Appetite Statement, the Capital Management Policy and the Policy of the Risk
Management and Capital Adequacy Function of Zavarovalnica Triglav d.d. and the Triglav
Group;
▪
Monitored the effectiveness of the Internal Audit Department;
▪
Took note of the Report of the Life Insurance Actuarial Function Holder in Zavarovalnica
Triglav d.d. and the Report of the Non-Life Insurance Actuarial Function Holder in
Zavarovalnica Triglav d.d.;
▪
Discussed the merger of Triglav, Zdravstvena zavarovalnica d.d. with Zavarovalnica Triglav
d.d;
▪
Took note of Triglav, Zdravstvena zavarovalnica d.d.'s claim for reimbursement of the
difference between the amount of costs paid to healthcare service providers and the
amount of insurance revenue from supplemental healthcare insurance;
▪
Approved the issue of a subordinated bond;
▪
Took note of the report on the development of key promising staff at Zavarovalnica Triglav
d.d. in 2023;
▪
Took note of the Triglav Group Cyber Security Report;
▪
Was briefed on other information regarding Zavarovalnica Triglav d.d., the Triglav Group
and its subsidiaries, and
▪
Approved individual transactions in accordance with the law and the Rules of Procedure of
the Supervisory Board.
c) Other major actions taken by the Supervisory Board in 2024:
▪
Discussing periodic fit and proper assessments of the members of the Management Board
and the Management Board as a collective body, the members of the Supervisory Board
and the Supervisory Board as a collective body, as well as of the Audit Committee external
member Luka Kumer;
22
▪
Approving the Group's performance factor, determining the annual performance bonus for
the Management Board of Zavarovalnica Triglav d.d. for 2023 and approving the
amendments to the Methodology for determining the variable remuneration and
decreasing basic salary of Management Board members for 2024;
▪
Discussing the annual report of the Works Council of Zavarovalnica Triglav d.d. and the
Works Council's proposal to recall the Worker Director;
▪
Discussing the draft extraordinary fit and proper assessment of the Management Board
member – Worker Director and formalised the procedure for the Works Council to appoint
a new Worker Director;
▪
Taking note of the enhancement of the Triglav Group's minimum standards, as well as its
governance and internal control system;
▪
Adopting the labour costs plan of the Supervisory Board for 2025, the financial calendar
and the timetable for the meetings of the Supervisory Board and its committees in 2025;
▪
Performing other activities related to the supervision and work of the Supervisory Board
and its committees.
The costs in connection with the Supervisory Board's work other than the remuneration paid to
its members and committees (disclosed in Section
4.4 Related party transactions of the
Accounting Report
) mostly included the rental costs of interpretation equipment and translation
costs for smooth execution of its sessions, training costs of the members of the Supervisory
Board and its committees, and the outsourced IT services for the Audit Committee. These costs,
including all remuneration, amounted to EUR 407,932 in 2024.
4.
SELF-ASSESMENT
Specific topics were discussed in advance by the Supervisory Board's committees, which drafted
resolutions to be adopted by the Supervisory Board and meticulously carried out other tasks
within the scope of their powers. The committee chairs regularly reported on their work at the
sessions of the Supervisory Board, which discussed the adopted decisions, submitted
recommendations and opinions and passed appropriate resolutions after due consideration.
All members were involved in the work of the Supervisory Board and its committees. With their
attendance at its sessions and active participation in discussions and decision-making, they
contributed to the effective discharge of duties within the powers of the Supervisory Board and
its committees. The work of the Supervisory Board is well managed and supported, whilst the
planning and frequency of its sessions is adequate. Both the Rules of Procedure of the
Supervisory Board and the Rules of Procedure of the Audit Committee include clear rules of
conduct in the event of a conflict of interest. The Supervisory Board members and the Audit
Committee's external member signed and submitted statements of independence in accordance
with the Slovenian Corporate Governance Code, which are published on the Company's website.
All Supervisory Board members declared themselves independent in accordance with the
Slovenian Corporate Governance Code criteria (all statements of independence are published on
the Company's website). All members of the Supervisory Board and its committees diligently
adhere to the rules on managing conflicts of interest. The Supervisory Board and its committees
follow the highest standards of conflict of interest management.
The Supervisory Board is of the opinion that its cooperation with the Management Board was
adequate, in accordance with the applicable legislation and good practices. To the best of its
knowledge, the Supervisory Board was informed of all events of material significance to the
assessment of the situation and its consequences, and to the effective supervision of the
Company's operations. The documents provided as materials for the Supervisory Board’s
sessions were of good quality and information was accurate, relevant, reliable, comparable and
23
exhaustive. The Supervisory Board regularly followed the implementation of its resolutions. The
Governance System and Policy of Zavarovalnica Triglav d.d. sets out main corporate governance
guidelines, taking into account the set long-term objectives and the defined role and work of the
Supervisory Board and its committees.
The fit and proper criteria as set out in the Fit and Proper Policy for the Management Board and
Supervisory Board Members of Zavarovalnica Triglav d.d. apply to both the Supervisory Board as
a collective body and to Supervisory Board members as individuals. A fit and proper assessment
was carried out before new Supervisory Board members – shareholder representatives took
office. On 10 January 2024, the Slovenian Insurance Supervision Agency issued a final decision
prohibiting Vinko Letnar from serving as a Supervisory Board member, thereby confirming the
Supervisory Board's views and assessment. In addition, the Appointment and Remuneration
Commission's periodic assessment was performed. The Supervisory Board as a collective body
was assessed as fit and proper, taking into account the adequate range of qualifications,
knowledge and experience in view of the circumstances and requirements under which the
Company operates. A fit and proper assessment is also performed for the Audit Committee's
external member.
The Supervisory Board regularly carries out the self-assessment procedure. Based on its findings,
it adopts an action plan containing a series of proposals and measures aimed at improving its
future performance. The implementation of the action plan is monitored on an ongoing basis.
By implementing the self-assessment procedures, the quality of the Supervisory Board's work is
improved, which is reflected in a higher quality of supervision of the operations and the areas
material for the Company and the Group.
The Supervisory Board believes that its composition (despite the absence of one Supervisory
Board member, employee representative) in 2024 corresponded to the size, activities and set
objectives of both the Company and the Group, which enabled it to make quality decisions.
The Supervisory Board carried out its duties and powers smoothly. The sessions of the
Supervisory Board and its committees were held in person and, in exceptional cases, also
virtually with the help of technical means.
In view of the above, the Supervisory Board is of the opinion that its work and the work of its
committees in 2024 were successful.
5.
OPINION ON THE ANNUAL INTERNAL AUDIT REPORT FOR 2024
In accordance with paragraph three of Article 165 of the Insurance Act (ZZavar-1), the Annual
Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024 was
submitted to the Supervisory Board, which took note of it at its session on 26 March 2025. The
report contains an overview of the implementation of the Internal Audit Department's
(hereinafter: IAD) planned activities in 2024 and a summary of material audit findings, an
assessment of the adequacy and effectiveness of risk management and the internal control
system of the audited areas in both the Company and the Group, the assessment of the
adequacy of the IAD's funds for its work, the IAD's quality assurance and improvement
programme and its results, and the statement of independence and impartiality of the IAD and
its employees.
The Internal Audit Department conducted the planned internal audits in the Company and other
companies of the Group and presented its internal audit findings to the relevant persons in
charge and made recommendations for improving risk management and the internal control
system of audited areas. Based on the performed internal audits and the follow-up of
24
implementation of recommendations and other relevant information, the IAD assessed that risk
management and the internal control system of the audited areas in the Company and the
Group were overall appropriate and were constantly improving. The Company has an
appropriate governance system proportionate to the nature and scale of its operations and the
complexity of its risks. It regularly monitors its risk profile and actively enhances the risk
management system and the internal control system, particularly in areas of increased risk or
exposure. As the Group's parent company, it also oversees risk management and internal control
systems in its subsidiaries, providing support for their improvement. The IAD carried out advisory
activities, followed up on recommendations, and worked on quality assurance and improvement
of both the IAD and the internal audit departments of other Group members. This included the
necessary activities for the implementation of the new Global Internal Audit Standards.
Additionally, the IAD performed the internal audit function for Triglav, Zdravstvena
zavarovalnica. The IAD reported on the implementation of its work plan, material audit findings
and the monitoring of the implementation of recommendations on a quarterly basis to the Audit
Committee and on a semi-annual basis to the Supervisory Board.
Based on the monitoring of the IAD's work and the submitted Annual Internal Audit Report of
the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024, the Supervisory Board is of
the opinion that the IAD operated in line with its work plan for 2024, which was adopted by the
Management Board with the approval of the Supervisory Board, and the expectations of the
Supervisory Board and that its work contributed to the better functioning of the internal control
system and improved risk management both in the Company and the Group. The Supervisory
Board has no objection to the Annual Internal Audit Report of the Internal Audit Department of
Zavarovalnica Triglav d.d. for 2024.
6.
FINDINGS OF THE SUPERVISORY BOARD REGARDING THE OPERATIONS OF ZAVAROVALNICA
TRIGLAV IN 2024
Based on its monitoring and supervision of the Company's operations in 2024 and the
examination and verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav
d.d., the Supervisory Board hereby establishes that the Company performed well and pursued its
strategic objectives.
The Group generated EUR 159.0 million in consolidated earnings before tax and EUR 131.4
million in consolidated net earnings. The parent company's net earnings amounted to EUR 98.2
million.
The Group's total revenue reached EUR 1,393.2 million, 2% lower than the previous year
due to the termination of supplemental health insurance.
The Group's total business volume fell by 1% to EUR 1,717.6 million. The Group's insurance
companies generated insurance, coinsurance and reinsurance premiums of EUR 1,622.3 million
in 2024 (index 98), of which EUR 1,104.8 million (index 93) was earned by the parent company
following the merger with Triglav, Zdravstvena zavarovalnica. Premium growth was achieved in
all insurance segments, with the exception of the health segment, and in most markets where
the Group operates, except for the markets of Slovenia and Bosnia and Herzegovina.
The Group's consolidated operating expenses, including other attributable insurance service
expenses, increased by 5% year-on-year to EUR 450.8 million.
The Group's total equity increased by 11% to EUR 989.0 million as at 31 December 2024. Return
on equity stood at 14.0%.
The Group's financial stability, high capital adequacy and high profitability in 2024 were again
confirmed by the two renowned rating agencies S&P Global and AM Best by assigning an "A"
25
rating to the Group. Both rating agencies gave a stable medium-term outlook, but in December
2024, S&P upgraded its outlook from stable to positive.
7.
ANNUAL REPORT
The Management Board submitted the Unaudited and later the Audited Annual Report of the
Triglav Group and Zavarovalnica Triglav d.d. for 2024 to the Audit Committee and the
Supervisory Board.
The Supervisory Board hereby ascertains that the Annual Report, which includes the Triglav
Group Sustainability Report, was compiled within the statutory deadline and submitted to the
appointed auditor. The Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for
2024 was audited by the audit firm Deloitte revizija d.o.o., Ljubljana, which on 11 March 2025
expressed an unmodified opinion on the separate and consolidated financial statements in the
Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024. In their independent
auditor's report, they addressed key audit matters related to the valuation of insurance and
reinsurance contract liabilities, insurance revenue, and the valuation of investments in
subsidiaries in the separate financial statements.
The audit firm Deloitte revizija d.o.o., Ljubljana also conducted the audit of the Group's
consolidated Sustainability Report for 2024 and issued an independent limited assurance
opinion on 11 March 2025.
Based on a detailed verification, the Supervisory Board established that the Annual Report of the
Triglav Group and Zavarovalnica Triglav d.d. for 2024, which was prepared by the Management
Board and verified by a certified auditor, was compiled in a clear and transparent manner and
that it was a true and fair presentation of the assets, liabilities, financial position, and profit or
loss of the Triglav Group and Zavarovalnica Triglav d.d. The Supervisory Board also verified the
consolidated Sustainability Report, prepared in accordance with ESRS and the EU Taxonomy
Regulation, ensuring reporting integrity and regulatory compliance. The Supervisory Board is of
the opinion that the Corporate Governance Statement, which is included in the Annual Report,
is appropriate and has no objections to it.
In accordance with the aforementioned findings, the Supervisory Board expresses no objection
to the unmodified opinion of the certified audit firm Deloitte revizija d.o.o., Ljubljana, which
found that in all material respects the consolidated and separate financial statements presented
a true and fair presentation of the financial position of the Triglav Group and Zavarovalnica
Triglav d.d. as at 31 December 2024, their profit or loss, comprehensive income and cash flows
for the year then ended, in accordance with the International Financial Reporting Standards as
approved by the EU.
The Supervisory Board has no comments on the certified auditor's Limited Assurance Report on
the consolidated Sustainability Report for 2024, included in the Annual Report. The auditor
concluded that nothing has come to their attention that causes them to believe the consolidated
Sustainability Report is not prepared, in all material respects, in accordance with the applicable
legal requirements.
In view of the above, the Supervisory Board approves the Audited Annual Report of the Triglav
Group and Zavarovalnica Triglav d.d. for the Year Ended 31 December 2024.
At its session, the Supervisory Board also discussed the Remuneration Report for 2024, which
was verified by the authorised audit firm Deloitte revizija d.o.o., Ljubljana: In accordance with
paragraph six of Article 294b of the Companies Act (ZGD-1), the auditor issued a limited
26
assurance opinion confirming that the Remuneration Report contains all the information
required by paragraphs two and three of Article 294b of the ZGD-1.
8.
PROPOSAL FOR THE DISTRIBUTION OF ACCUMUATED PROFIT
At its 2nd/2025 session, the Supervisory Board examined the Management Board's proposal for
the distribution of accumulated profit as at 31 December 2024, which will be subject to a final
decision by the General Meeting of Shareholders of Zavarovalnica Triglav d.d., and approved the
following draft resolution on the distribution of accumulated profit to be proposed by the
Management Board to the General Meeting of Shareholders:
"The accumulated profit totalling EUR 109,430,652.82 as at 31 December 2024 shall be
distributed as follows:
▪
A part of the accumulated profit amounting to EUR 63,658,414.40 shall be distributed for
dividend payments. A dividend in the amount of EUR 2.80 gross per share shall be paid to
the shareholders appearing in the Share Register as at 17 June 2025. By 18 June 2025, the
Company shall ensure funds for the payment of all dividends on the account of KDD –
Centralno klirinška depotna družba d.d., intended to execute the corporate action of paying
out dividends to the shareholders in accordance with the common European standards for
corporate actions.
▪
The distribution of the remaining accumulated profit of EUR 45,772,238.42 shall be decided
on in the coming years."
Andrej Andoljšek
Chairman of the Supervisory Board
Ljubljana, 26 March 2025
27
4.
Triglav Group strategy and plans
-
Strategic risks and business opportunities are regularly assessed in response to the
challenges and opportunities arising in a rapidly changing business and social environment.
-
From 2025 to 2030, in line with its vision as the region's leading international financial and
insurance group, the focus will be on profitable and sustainable growth in both strategic
activities. The ambition is to double earnings by 2030 and drive growth in markets outside
Slovenia. With a client-centric approach, the Group will pursue further digitalisation and
strengthen existing strategic approaches to address evolving client and market needs.
-
To ensure a balanced transition to a low-carbon society, the business model and investment
strategies are being adapted, with the introduction of sustainable products and services.
-
The Group demonstrated the resilience of its business model with strong performance in
2024. Its operations will continue to be profitable in 2025, with further expansion of the
business planned.
4.1
Today's challenges and opportunities
The environment in which the Group operates is characterised by rapid change and increasing
complexity. Responsiveness and reliability remain central to the Group's revised strategy,
enabling it to overcome challenges and create long-term value.
By analysing and adapting to evolving economic, social and environmental demands, the Group
remains focused on maintaining steady, profitable growth while identifying opportunities and
risks arising from global and regional developments.
Key developments that significantly impact the Group's business today – and are expected to
continue shaping its operations in the coming years – include macroeconomic conditions,
particularly inflation and interest rate volatility, as well as geopolitical uncertainties affecting
financial markets and consumer confidence.
The growing impact of climate change continues to influence the insurance sector, while
technological advancements, particularly in digitalisation and artificial intelligence, are driving
innovation and reshaping client expectations. Demographic shifts, including ageing populations
and evolving workforce dynamics, present both challenges and opportunities for the
development of new products and services.
4.1.1
Risks related to the macroeconomic and regulatory environment
The global economic landscape continues to be shaped by persistent geopolitical tensions,
easing inflationary pressures and subdued economic growth. Geopolitical risks arising from the
Russia–Ukraine war and instability in the Middle East are affecting commodity flows, supply
chains, market sentiment and international political stability. Inflationary pressures have eased,
with interest rates declining as expected at the shorter end of the curve while rising slightly at
the longer end. Weak demand and an uncertain economic outlook are slowing overall economic
activity.
Financial markets have been influenced by continued uncertainty surrounding the pace of policy
adjustments by the major central banks in 2024. Gradual changes in monetary policy, along
with interest rate adjustments, have generated cautious optimism, tempered by the awareness
that sudden geopolitical or regulatory shifts could rapidly alter the economic landscape. Despite
this volatility, equity markets recorded significant growth throughout most of the year. For
further details on macroeconomic trends and geopolitical risks, see Section
7. Macroeconomic
28
environment and market trends
, and for market risks, refer to Section
2.8 Risk management
in
the Accounting Report.
The Group's operations in the Health segment were significantly affected in 2024 by the
regulatory framework for supplemental health insurance in Slovenia, introduced in 2023. While
presenting short-term challenges, this regulatory change also created opportunities for
innovation and sustainable growth within the complementary health insurance segment.
In this dynamic environment, the Group remains focused on resilience and strategic flexibility,
closely monitoring external factors to effectively adapt to macroeconomic and geopolitical
developments.
The Group's approach to challenges and risk management
To manage market risks,
the investment policies
of Group companies primarily focus on
ensuring the security of assets covering future non-life and life insurance liabilities. These
policies are designed in the best interests of all beneficiaries, aligning with the objectives set
out in insurance contracts. Investments are broadly matched to the nature and duration of
insurance and reinsurance liabilities through a robust
asset-liability management
system,
allowing for effective management of market risks while maintaining a balance between
investment security and achieving an adequate return on investment portfolios. In managing
the remaining assets, the Group strives to achieve an adequate return, while taking into account
all assumed risks and maintaining a high overall credit rating across the whole investment
portfolio.
As part of the investment process, an effective monitoring system has been established to
oversee
the entire counterparty portfolio
, ensuring timely risk management in the event of any
deterioration in counterparties' credit quality.
Liquidity management
remains a priority, with the Group meeting all obligations in a timely
manner by maintaining adequate reserves and actively monitoring cash flows. Within the
liquidity risk management system, investments in alternative assets are particularly closely
monitored based on their specific characteristics.
Although inflationary pressures have eased, they continue to affect claims payments and
operating expenses. The increase in claims payments is managed through pricing policy
adjustments and regular monitoring and management of operating expenses to ensure
profitability and resilience.
In identifying potential risks, scenarios involving a tightening of the macroeconomic conditions
and a deterioration in financial market conditions are regularly assessed. These risks are
managed by maintaining the resilience of investment strategies, ensuring operational flexibility
and safeguarding liquidity against potential shifts in demand for insurance products.
Ongoing efforts are also made to ensure compliance with all existing and emerging regulatory
requirements, while simultaneously exploring opportunities for innovation and new product
development in a changing environment.
Geopolitical risks are expected to remain significant in the future. As such, the utmost care is
exercised in underwriting insurance and reinsurance business in the international market and
in the geographic diversification of investments and reinsurers, as detailed in Section
2.8 Risk
management
of the Accounting Report.
29
4.1.2
Climate change and sustainable development
The physical risks of climate change, which have a significant impact on the insurance industry,
are linked with the increasing severity and frequency of extreme weather events, affecting both
social and economic structures. In the region where the Group operates, more frequent and
severe floods, droughts and hailstorms are of particular long-term concern. Rising demand for
insurance coverage presents opportunities for business expansion, alongside challenges in
securing adequate reinsurance cover and implementing effective risk management strategies.
The transition to a low-carbon economy, driven by evolving policies, consumer behaviours and
market sentiment, is significantly reshaping the business environment. Beyond operational
risks, it introduces legal, reputational and technological risks, including the need to adapt
business practices to reduce greenhouse gas emissions. For insurers, the indirect impact of
emissions through investment and insurance portfolios can be more substantial than the
impact of the direct carbon footprint. Transition risks may also lead to fluctuations in asset
values, while shifts in environmental policies and consumer behaviour could significantly affect
policyholders and insurance products. Investment and insurance activities play a key role in
influencing issuers and policyholders, promoting a faster transition to sustainable business
practices.
Global population growth and economic development contribute to the overconsumption of
natural resources, increasing the importance of balanced social development to reduce
inequalities and improve conditions for vulnerable groups. Rising temperatures may lead to
higher mortality rates, the spread of infectious diseases, and an increased likelihood of new
epidemics or pandemics. These factors could drive greater demand for life and health insurance
while exacerbating broader climate change impacts on public health and social stability.
The insurance sector can enhance its resilience by proactively addressing climate change
challenges and promoting sustainable development. By offering insurance solutions and other
services to mitigate climate-related risks and adopting investment policies that support
sustainability, the sector can meet evolving client needs while facilitating a stable transition to
a more sustainable future.
The Group's approach to challenges and risk management
The Group conducts its two core activities to create long-term economic, social and
environmental value for stakeholders, wider society and the environment. By prioritising
sustainable business, it fulfils its mission of
Creating a Safer Future
.
The Sustainable Development Policy defines the approach to achieving strategic sustainability
ambitions by identifying impacts, risks and opportunities while integrating global best practices
into business operations.
As part of the Group's own risk and solvency assessment (ORSA) process, particular attention is
given to identifying and assessing climate risks. A qualitative assessment of assets and liabilities
was conducted, highlighting the significance of climate risks for the investment segment in the
medium and long term. Transition risks could become material over the medium or long term if
legal and technological risks materialise. A stress scenario was carried out to assess physical
risks within the insurance portfolio, which could already be material in the short term. Ensuring
adequate client protection remains a priority, with reinsurance terms and conditions adjusted
where necessary.
The Group is also examining biodiversity risks. Although linked to climate risks, these pose
distinct and complex challenges. In the short term, they are not considered material; however,
transition risks affecting assets and liabilities could become increasingly significant in the long
30
term. Physical risks related to the investment portfolio remain negligible, as no major
dependence on nature or natural resources has been identified. However, physical risks within
the insurance portfolio are expected to grow in materiality over the long term.
To reduce policyholders' exposure to physical risks and insurance losses, priority is given to
preventive solutions
that mitigate climate risks. These include raising client awareness of
climate change through tools such as the i.triglav digital platform, promoting insurance
products for electric and hybrid vehicles, and offering tailored cover for renewable energy
companies. Sustainability efforts also extend to claims settlement processes, where an
environmentally responsible reuse and reduce approach is applied.
Sustainability-related risks also extend to the Group's reputation. Such risks may materialise
over time, potentially affecting all key business processes, acquisition and retention of business
and employees.
See
Section 10 of the Sustainability Report
for further details on the sustainability aspects of
operations, including the double materiality assessment process.
4.1.3
Digital transformation and cybersecurity
The digital transformation of the financial sector is driven by rapid technological advances,
evolving client expectations and increasing competition. Insurers are prioritising seamless user
experiences, flexible product offerings and secure operations when adopting new technological
solutions and innovative business models. The use of advanced analytics, cloud services, the
Internet of Things (IoT), cognitive computing, advanced mobile networks, process automation
and robotics continues to expand. The integration of artificial intelligence (AI) into business
processes is also advancing rapidly, influencing areas such as underwriting, claims management
and client engagement.
Digitalisation presents significant opportunities for business optimisation, but also introduces
new challenges and risks. The increasing interconnectedness of modern business ecosystems
and reliance on external ICT service providers heighten vulnerabilities to business disruptions,
data breaches and sophisticated cyberattacks. Strengthening digital resilience through robust
cyber risk management, continuous testing and ongoing improvements to response plans is
therefore essential to maintaining client trust and ensuring sustainable performance.
At the core of digital transformation is the need for highly skilled employees with expertise in
areas ranging from AI-driven decision-making to maintaining a secure digital infrastructure.
Many insurers are strengthening partnerships and alliances with specialised external providers
to meet evolving requirements and access innovative technologies and expertise.
These trends are reflected in regulatory developments. In 2024, the European Parliament and
the European Council adopted the Artificial Intelligence Act, introducing extensive requirements
for providers and users of high-risk AI systems. The Digital Operational Resilience Act (DORA),
which comes into force in January 2025, mandates comprehensive digital risk management and
cybersecurity practices for financial institutions. Additionally, the first set of implementing acts
for the EU Digital Identity Wallet was adopted. These regulatory developments will shape the
future of the financial sector, influencing business practices and client protection.
The Group's approach to challenges and risk management
The Group continually adapts to changes in the digital landscape, accelerating the digitalisation
of its operations and launching innovations that align with its strategic development goals.
Solutions such as remote signing, video identification, multi-channel access, electronic
31
identities and remote business have become integral to the Group's operations. The
digitalisation process is continuously being expanded, enhanced and upgraded. See Section
4.4
Development activities (digital transformation)
for more information on development activities.
The Group's risk management processes were upgraded with additional rules and controls to
comprehensively and systematically identify, assess and manage the risks posed by new
technological solutions.
New solutions are evaluated before being implemented and regularly tested in terms of security
and business continuity. Alignment with clients' expectations and needs is ensured, with
improvements based on client feedback. As part of efforts to innovate and enhance business
process efficiency, tools that increase productivity, including AI, are deployed.
The Group cooperates with ICT service providers who are committed to high security standards
and whose solutions comply with information security and data protection legislation. Tailored
cyber protection insurance products and assistance services are offered to clients to better deal
with the challenges of remote business and to reduce cyber threats.
The information security and security controls management system is continuously upgraded
,
and
information security
, business continuity plans and recovery procedures are
regularly
reviewed at various levels
.
Cyber risks are consistently incorporated into stress scenario tests,
whereby information security is analysed and measures are taken to make further
improvements.
Employees are regularly made aware of information security risks and trained on the safe use
of IT. Their level of awareness is also regularly assessed, and additional measures and new
approaches are implemented.
Information security is an essential aspect in the design of the Group's processes, information
systems and controls. The Company reaffirmed its commitment by extending the ISO/IEC
27001:2022 certification for the information security management system.
See Section
11. Digital Operational Resilience Report
for more information.
4.1.4
Demographic and human resource risks
Demographic trends and changing workforce dynamics continue to shape the insurance
landscape. Ageing populations, lower fertility rates and the rising incidence of chronic diseases
are placing sustained pressure on social welfare systems and healthcare services, affecting their
long-term sustainability and influencing demand for insurance products. The evolving needs of
clients, especially younger and more price-sensitive segments, call for more accessible, flexible
and inclusive insurance solutions. Increasing awareness of the interplay between health,
lifestyle and environmental factors is also prompting clients to seek tailored products and
advice.
The advancing digital transformation and rapid technological developments, increasingly
characterised by artificial intelligence, are driving the demand for skilled professionals,
particularly those combining industry knowledge with digital skills. High employment rates and
competitive labour market conditions often result in demand exceeding supply, leading to
increased salary pressures and recruitment challenges. Flexible working conditions, continuous
training and a strong corporate culture have become essential for maintaining a stable talent
base, although these measures also contribute to higher labour costs.
32
Demographic pressures, changing client expectations and a shortage of professionals with
digital skills elevate the importance of innovative products, effective talent management, and
inclusive and accessible solutions.
The Group's approach to challenges and risk management
Based on regular monitoring of demographic trends in all the Group's markets, insurance terms
and calculation factors are adjusted, and opportunities for new insurance coverages and
products are identified. By expanding the range of products, risks not sufficiently covered, or not
covered at all, by the compulsory social insurance scheme are addressed. The Company is
expanding its life, pension and health insurance product range, thereby increasing the security
of clients at all stages of life. It is exposed to longevity risk in products with lifetime annuity or
pension payouts. Especially long-term risk, which requires special attention, is managed by
developing dynamic models of the policyholders' life expectancy and setting appropriate
premium rates and provisions.
The changing insurance preferences and needs of younger generations offer opportunities for
innovation and product adaptation. Young people's awareness of financial security is raised
through new insurance products. Multi-channel offerings and innovative approaches in
advertising and communication are used to engage them.
The social importance of healthcare continues to grow. The Group is working to expand its range
of healthcare services, providing insured persons with timely, high-quality and more affordable
healthcare services than its market competitors. The transformation from a traditional health
insurance provider into a health partner is underway, offering clients comprehensive, lifelong
services. By providing complementary health insurance products and services, the Group
mitigates the risks associated with healthcare reform and the consequences of the termination
of supplemental health insurance in Slovenia.
Employees play a key role in achieving the Group's ambitious strategic goals. The labour
shortage in Slovenia provides an incentive to attract new employees with specialist skills and
competences, particularly in IT, digitalisation, business intelligence, risk management, actuarial
science and related fields. The risk of key staff leaving also remains a current concern.
Efforts to reduce the risk of unwanted turnover include quality working conditions, employee
benefits and quality communication. The Group is strengthening its brand of a development-
oriented and responsible employer and building up its recognisability as a desirable employer,
being able to attract and motivate new highly qualified and highly skilled workers and young
people. Young people are actively involved in various initiatives before they are hired through
company scholarships, work placements, and company and business presentations. Substantial
investments are made in the professional and general training of employees.
Where the nature of the work permits, hybrid work is provided and expanded for employees of
Group companies. See Section
8.5 Investment in own-use real property and equipment
for more
information on the hybrid workplace.
Employee satisfaction within the Group is regularly monitored by measuring the organisational
climate. According to this year's results, the Group is effectively adapting to changes,
communication is open and effective, and the Group remains an attractive working
environment. See Section
10.3.1 Employee care
for more information about care for employees.
33
4.2
Triglav Group Strategy for 2025 - 2030
Strategic risks, challenges and opportunities, as well as the needs of key stakeholders, are
regularly monitored alongside ongoing assessments of the business model and strategy (see
Section
10.1.3 Triglav Group's business model and value chain
).
Based on the analysis of industry trends, challenges and opportunities in the business
environment, as well as the expectations of key stakeholders, the business strategy for 2025–
2030 was ambitiously upgraded at the end of 2024. In its implementation, the mission of
Creating a Safer Future
will continue to be pursued, while enhancing the profile of the Group as
an international insurance and financial group, which is the vision.
Mission:
Creating a Safer Future
We are client-focused.
We help our partners grow.
We promote employee development.
We are a profitable, stable and safe investment.
Vision:
An international insurance and finance group.
The Triglav Group is the leading insurance and financial group in the Adria
region, strengthening its dominant position in the region.
An international group, further strengthening its identity and visibility. Revenue
from regional and international markets will exceed that of the Slovenian
market.
Values and
beliefs:
Responsiveness, simplicity and reliability
are reflected in daily operations.
▪
A group that provides clients a sense of
security
. A reliable partner that
ensures a
simple
(clear and understandable steps),
fast, predictable
(consistent procedure) and
transparent
experience.
▪
An
agile and efficient organisation
that responds quickly to challenges and
adapts
to
environmental
changes.
Processes
are
lean,
simple,
technologically advanced and cost-effective.
▪
Committed to fostering a
winning and entrepreneurial mindset
.
Strategic
activities:
Insurance
Asset management
▪
Non-Life
▪
Life
▪
Health
▪
Reinsurance
▪
Own insurance portfolio (assets
backing liabilities and guarantee
funds)
▪
Mutual funds and discretionary
mandate services
▪
Pension funds
34
The Triglav Group's strategic ambitions to 2030
▪
Highly profitable operations – value for shareholders
The Group aims to
double earnings before tax
to EUR 250–300 million
by
2030
, while remaining a profitable, stable and safe investment for
investors. While pursuing high profit targets, the Group is expanding the
scale of its business, ensuring that profit sources are diversified both
geographically and across products and services, thereby consolidating
its market position.
The Group's dominant market position in the region
allows it to leverage
economies of scale and achieve greater process efficiencies, which will
be further strengthened.
Cost-effectiveness will be improved by simplifying and centralising
processes and continuing the digital transformation of operations.
The Group aims to maintain its high
"A"
credit rating
as an insurance
and financial group, confirming its sound risk management and capital
adequacy. The target capital adequacy ratio has been set at 200–250%
(see Section
9.2.1 Capital management
for more details).
In the insurance business, the goal is a high level of profitability, with
the aim of keeping
the combined ratio for the Non-Life and Health
segments
below 95%
throughout this strategy period.
Plans include growing earnings per ZVTG share at an average annual
rate of 10% and the book value per share at 8%. The ambition is to
achieve a net return on equity (
ROE
) of
12–13%
by 2030.
In line with
the dividend policy
(see Section
9.2.1 Capital management
for more information), the Group plans to distribute approximately EUR
400 million in dividends to shareholders over this strategy period. At the
same time, the target capital adequacy and favourable conditions for
the Group's growth and development will be maintained.
130–150
250–300
Načrt 2025
2030
Earnings before tax
(in EUR million)
x2
12–13%
2030
ROE
≈5.0
≈9.0
2024
2030
Ambitious EPS Growth (in EUR
million)
≈10%
CAGR 24
–
30
Načrt 2025
2030
Combined ratio Non-Life and
Health
< 95%
2025 Plan
2030
2025 Plan
2030
35
▪
Above-average growth in markets outside Slovenia
Increasing the Group's visibility as
an international group, while
maintaining
a dominant market position in the Adria region
. The
focus is on
improving
the position in individual markets within the
region.
In international markets outside the region, growth opportunities
are pursued through
reinsurance activities and new business models.
▪
Ambitious
growth in business
volume
and assets
under
management
Expansion of the business volume.
The
Group aims for its business
volume to reach EUR 2.5–3.0 billion in 2030, with
assets under
management
exceeding EUR 10 billion.
Ambitious
organic growth will be complemented with acquisition
activities, should the right opportunities arise.
▪
An outstanding client experience
Clients and their needs
remain
at the core of all activities, with a
focus on delivering a consistently high-quality experience at every
point of contact
.
A diversified offering is adapted to clients' needs and expectations, ensuring their well-being
and enhancing their quality of life. Client-specific requirements are considered, providing
affordable, innovative, simple
and
comprehensive insurance and investment solutions
.
▪
An agile and efficient organisation
The Group operates as an agile organisation, adapting effectively to challenges and
environmental changes, including climate change. This strengthens the Group's ability to
reallocate, upgrade or phase out assets, adjust its product and service portfolio, and develop
employees' core competencies. Its activities are focused on further process simplification.
▪
An environment that attracts top talent
The Group brings
together engaged, collaborative and entrepreneurial employees, who share
common values and thrive in a creative, dynamic work environment.
The Group's organisational culture is designed for
high efficiency and is aligned with its vision
as an international group.
The
Group has also set out its sustainable development ambitions, see Section
10.1.2.1 Strategic
ambitions in sustainable development
for more information.
1.7
> 1.8
2.5–3.0
2024
2025 Plan
2030
Total Business Volume
(in EUR billion)
5.9
> 10
2024
2030
Assets under Management
(in EUR billion)
36
4.3
Implementation of the Triglav Group strategy in 2024
Operating safely and profitably, the Group achieved a business volume of EUR 1.7 billion and
met its target capital adequacy ratio. Dividends of EUR 39.8 million were paid to shareholders.
Planned development activities in strategic insurance and asset management businesses were
successfully delivered, reinforcing the Group's leadership in both the sector and the region.
By the end of 2024, the Group had met most of the objectives outlined in its strategy for the
period to 2025. Adequate profitability was achieved, with return on equity exceeding the 10%
target. Despite a shortfall in the Health segment, total business volume surpassed the strategic
target in 2024, and the share of premium written outside Slovenia increased. Despite challenges
arising from a changing business and operational environment, the Group maintained a high
level of client satisfaction (NPS).
Client focus remained a key priority, with extensive development efforts dedicated to enhancing
the user experience in underwriting and after-sales activities. Insurance products and services,
as well as sales processes and channels, were further developed. The network of strategic
partnerships was strengthened, and progress was made towards the digital transformation of
processes.
The Group remained committed to its core values:
responsiveness, simplicity and reliability. A
visual employer brand identity was developed, and employees were encouraged to enhance
their competences, adopt a healthy lifestyle and embrace the organisational culture. High scores
were recorded on strategic indicators measuring satisfaction and engagement.
Through its sustainability-oriented operations, the Group reaffirmed itself as a development-
driven environment for employees and business partners and a stable investment for investors.
Safe and profitable operations
Profitable operations and credit rating
▪
Earnings before tax: EUR 159.0 million (earnings before tax from continuing operations: EUR 142.9
million (earnings before tax from discontinued operations: EUR 16.1 million).
▪
Return on equity (ROE): 14%.
▪
The dividend was paid out in line with the dividend policy, amounting to EUR 39.8 million, or EUR 1.75
gross per share.
▪
Credit rating: The high "A" credit rating was reaffirmed.
Growth in business volume
▪
Gross written premium: –2%; excluding the impact of the termination of supplemental health
insurance, growth would have been 10%.
▪
The Group's market share in the Slovenian insurance market: +1.3 percentage points.
▪
Position in the Adria region: The largest insurance group in terms of written premium, with a 21.8%
market share in 2023.
Capital adequacy and capital allocation
▪
Prudent implementation of the capital management policy.
▪
Financial strength and capital adequacy maintained within the target range.
Internal synergies and productivity growth
▪
Gross written premium per Group insurance company employee: EUR 353 thousand.
An outstanding client experience
Client satisfaction and loyalty
▪
A 20% increase in the number of users of the i.triglav digital office in the Company, and a 30% increase
in the number clients who gave their consent to conduct business electronically.
▪
High client satisfaction score with Group services (Net Promoter Score): 70.
▪
Total number of clients: Up by 6%.
37
Comprehensive and client-tailored services and an omni-channel approach
▪
Upgraded i.triglav digital office.
▪
Development of a hybrid sales channel.
▪
Technologically modernised, AI-powered claims reporting and settlement processes.
▪
The TRIA virtual assistant enhanced with OpenAI technology, offering personalised communication
for registered users.
Products and services
▪
Development of new insurance products, upgrades to existing ones and an expanded range of
coverages.
▪
Renewal of Triglav Skladi's product range.
Development of service-oriented business models and digital transformation
Advanced service-oriented business models
▪
New services and partnerships in business ecosystems to deliver an outstanding user experience.
▪
A centralised communication entry point for clients.
Digitalisation, optimisation and automation of business processes
▪
Optimised online insurance sales, training and digitalisation of partner engagement processes.
▪
Improved step-by-step digital claims reporting.
▪
Development of an AI-based sales assistant to improve the user experience in online underwriting
and remote claims reporting.
Development of an organisational culture
Living the Triglav Group's values
▪
Delivering on the Group's values when working with external and internal clients.
▪
Promoting volunteering to strengthen and better integrate teams.
▪
Commitment to a healthy lifestyle and mental health.
Employee acquisition, development and retention
▪
Introduction of DNLA testing in Group companies.
▪
Employer brand enhancement through youth engagement events and a sustained social media
presence.
▪
Group-wide standardisation of recruitment advertisements.
▪
Initiatives to improve employee satisfaction and engagement.
Development of key and high-potential staff and a succession system
▪
Identification of a new group of high-potential young employees within the Group, with participation
in the Triglav International Business Academy (TIBA).
▪
Identification of potential management successors.
▪
Delivering targeted training to groups of key and high-potential staff and leaders.
Delivering on ESG strategic ambitions
▪
Effective reduction of paper and energy consumption while increasing the share of digital business.
▪
Integration of sustainability principles into mutual fund management.
4.4
Development activities
In 2024,
client focus
was further strengthened in alignment with the Group's existing strategy,
particularly through the implementation of an advanced data management system, business
process digitalisation and, where applicable, the implementation of artificial intelligence into
business processes. These steps were taken to address the evolving needs of clients and partners,
as well as emerging risks and regulatory requirements.
In both of the Group's core businesses, development activities were aimed at delivering an
outstanding client experience at all stages of engagement.
38
Insurance
Business digitalisation and simplification, along with the customisation of products and services
for clients and partners, are closely intertwined. The main new insurance solutions have been
grouped according to their dominant features, directly supporting client focus.
Digitalisation of business with clients and partners
For clients using only digital channels, the sales process was further digitalised to enhance the
overall digital experience. For multi-channel users,
the hybrid journey
was improved to facilitate
seamless transitions between channels.
In non-life insurance, a user-friendly, easy-to-understand and efficient experience was achieved
with
step-by-step claims reporting
. A digitalised claims reporting process was established with
selected partners in the Pets ecosystem.
The functionalities of the i.triglav digital office in Slovenia were extended to include
risk
assessment and claims settlement status for non-life claims
. For clients in
Croatia
, the non-life
insurance content on this increasingly popular platform was updated, and additional
functionalities were added.
In
Serbia
, the digital presence of travel insurance was enhanced. In
North Macedonia
, non-life
insurance business with financial institutions was digitalised, and an online platform for life
insurance banking partners was launched. In
Montenegro
, an online bundled insurance tailored
to the SME segment was offered.
Products and services have been simplified and adapted to meet evolving client needs.
Building on experience and results in building damage repair,
collaboration with major partners
modernised the
report & repair
process in the Home ecosystem. Non-life insurance products
were upgraded with GIS-based flood risk classification. For motor vehicle insurance, the
approach to commercial discounts for individuals was streamlined.
A new life insurance product, LAJF, was designed for
young people
, while the investment
insurance option
for older people
was extended up to 75 years. Coverage for genetic analysis
(DNA analysis) was updated in additional life insurance for critical illnesses.
In
health insurance
, self-pay dental services and
Zdravnik 360
(Doctor 360) insurance products
were upgraded, while new family medicine and paediatric concession service options were
launched. The sales and underwriting process for group supplemental pension insurance was
adapted to meet
the needs of micro and small enterprises
.
In the Adria region, products were redesigned, and several new ones were launched. In
Croatia
,
comprehensive car insurance and home insurance products were upgraded. A new guaranteed-
return endowment life insurance product for individuals was introduced, and a new product,
Riziko plus
(Risk Plus), was launched for
financial institutions
. In
Serbia
, a new non-life product,
Triglav biznis
(Triglav Business), was launched for
entrepreneurs
. For
life insurance clients
, a new
product was linked to investment funds, and digital communication channels (email, SMS, Viber)
were significantly expanded. Documentation for the sales network was simplified, and
cooperation with non-life insurance sales centres was strengthened. In
North Macedonia
, new
products, including overdraft insurance and photovoltaic insurance, were launched.
A new
contact centre for life insurance client support
was established, and new coverage options were
added to this insurance class. In
Bosnia and Herzegovina
, new communication channels (email,
Viber) were introduced for non-life insurance clients, and travel insurance was renewed. For
39
companies and other institutions, a new group term insurance for employees under life
insurance was introduced. In
Montenegro
,
a new contact centre
and online bill payment system
were launched.
Partnership development
In developing excellent relationships with external partners, greater emphasis was placed on
training activities. Across all markets, high-quality user experiences were ensured when using IT
solutions, and in some cases, specialised units were established to collaborate with partners.
A single integration layer was introduced for the sale of embedded insurance
through consumer
electronics stores and travel agencies
. IT support for
partner banking networks
was modernised
in several Group companies, with efforts focused on expanding and upgrading cooperation.
Cooperation with leasing service providers, roadworthiness test providers and vehicle importers
was supported by new IT solutions, particularly those based on the new AdInsure 3.0
underwriting application.
Digital transformation
A data-centric approach
is at the core of the Group's digital transformation. It serves as a key
foundation for strategic and operational decision-making, supported by a plan to systematically
enhance the data competences of employees. Through the
Triglav Group Data Analytics Platform
Strategy
, a holistic approach to data management and analysis was adopted, advancing
analytical capabilities and reinforcing the foundation for the future integration of artificial
intelligence into business processes.
Artificial intelligence (AI)
was effectively integrated into new digital solutions for process
automation. In the Client Contact Department, case handling was automated using solutions
powered by Azure OpenAI and ChatGPT.
The TRIA virtual assistant
was upgraded with OpenAI
technology to provide faster and more accurate responses to client enquiries regarding products
and services, while retrieval-augmented generation (RAG) technology was employed for
personalised communication with users.
The new
cloud computing strategy
defines the Group's strategic guidelines in this area. Core IT
systems were upgraded to support new and upgraded products. Projects to centralise IT
infrastructure continued, optimising the use and cost-efficiency of IT equipment while
enhancing security.
The DRAJV app
was further developed into a transactional and ecosystem platform, which
includes policy overviews for motor vehicle and travel insurance, renewal and underwriting of
new insurance policies, claims reporting, vehicle assistance requests, tow tracking and
promotional functionalities.
The number of users of Triglav's digital platform
increased by 20%, reaching over a quarter of a
million. The number of clients consenting to electronic business transactions grew by 30%,
directly supporting the Group's strategic objectives.
Asset management activity
A significant shift in development was achieved with the renewal of Triglav Skladi's product
range, both in mutual fund management and discretionary mandate services, offering new
clients only products that adhere to sustainable principles.
40
An advanced and user-friendly mobile app was launched to provide a simpler and more
comprehensive user experience, complementing the digital marketing and sales model for
mutual funds. Additionally, the complex implementation of an IT solution for digital business
process execution was completed, enhancing the efficiency and transparency of fund
management and discretionary mandate services.
Brand development
The strength, visibility and perception of the Triglav brand, which are regularly monitored, are
key factors in the Group's market position and in seizing development opportunities. Key
findings from the Group's 2024 general public reputation survey indicate that it ranks among
the top five most reputable in the industry across nearly all of its markets. The Group ranks
highest in Slovenia, followed by Montenegro and North Macedonia. The business community's
assessment of its performance and reputation remains high, and the brand excellence index is
stable.
In 2024, a broad focus was placed on
employer brand
. Its visual identity was developed, and the
brand was strengthened through a multi-channel approach and a broad range of activities for
both employees and potential recruits. These included communication campaigns and events
for employees (Festival of Ideas, Triglav International Business Academy), innovative events for
students and targeted recruits (
Top Experience
– exploring AI in insurance) and other initiatives,
such as popular team-building programmes incorporating corporate social responsibility.
See
Section 10. Sustainability report for more information.
4.5
Implementation of the Triglav Group's business plans in 2024
The Group achieved
earnings before tax of EUR 159.0 million
(EUR 142.9 million from continuing
operations), exceeding both the original target (EUR 100–120 million) and the upwardly revised
annual profit guidance issued during the year ( EUR 130–150 million). The result reflects strong
business performance and the impact of one-off events (see Section
8. Operations of the Triglav
Group and Zavarovalnica Triglav
for more information).
The total business volume amounted to EUR 1.7 billion
, exceeding the target of approximately
EUR 1.6 billion. It was 1% lower than the previous year due to the termination of supplemental
health insurance in Slovenia. As a result of this termination, premium written in the Slovenian
market declined by 13%, whereas the international market recorded 21% growth and other
markets in the Adria region saw a 9% increase. Growth was achieved in most insurance markets
and across all business segments, except in Slovenia and Bosnia and Herzegovina, and in the
Health segment.
The combined ratio for the Group's Non-Life and Health segments
was a favourable
93.6%,
outperforming projections.
It decreased by 8.3 percentage points year-on-year due to an
improvement in the claims ratio. See Section
8. Operations of the Triglav Group and Zavarovalnica
Triglav
for more information.
The credit rating agencies S&P Global and AM Best reaffirmed the Group's
"A" credit rating with
a stable medium-term outlook, which was upgraded to positive in December by S&P
Global.
Achieving an "A" credit rating ensures an appropriate competitive position of the Group
in insurance, reinsurance and financial markets as it confirms its financial strength, stability and
sound performance. See Section
6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav
for more information.
41
4.6
The Triglav Group's plans for 2025
The year 2025 marks the first year of a new strategy period to 2030, during which the Triglav
Group has set high ambitions for profitable, safe and sustainable operations (see Section
4.2
Triglav Group Strategy for 2025–2030
for further information).
It is estimated that the Group's operations will be primarily influenced by macroeconomic
conditions, financial market developments, reinsurance cover, market situation and the
development of the potential of its markets. Under the projected conditions for the year,
earnings before tax
are expected to reach
EUR 130–150 million in 2025
(with
net earnings
ranging from
EUR 100 million to EUR 120 million
).
In the insurance business, the goal is to maintain a high level of profitability, with
the combined
ratio for the Non-Life and Health segments
remain
below 95%
.
The Group will expand its business volume, while diversifying and growing in markets outside
Slovenia, in alignment with strategic ambitions. The Group's
total business volume
is projected
to
exceed
EUR 1.8 billion in 2025
. In asset management, an increase in
assets under
management (AUM)
is planned.
Ambitious organic growth will be complemented by prudent
acquisitions.
The aim is to maintain the high
"A" credit rating
, reaffirming sound risk management and capital
adequacy
, while striving to remain
a stable, safe and profitable investment for investors
.
42
5.
Corporate Governance Statement
-
The three-line system, comprising corporate governance and the management of key
functions and business lines, plays a crucial role in the effective management and control of
subsidiaries.
-
The General Meeting of Shareholders approved the Remuneration Policy of Zavarovalnica
Triglav d.d.
-
The President of the Management Board, Andrej Slapar, along with Management Board
members Uroš Ivanc and Tadej Čoroli, commenced a new five-year term of office.
-
Barbara Nose and Rok Ponikvar were appointed new Supervisory Board members,
shareholder representatives.
5.1
Governance policy
Zavarovalnica Triglav's governance system plays the main role in the implementation of the
business strategy and effective risk management on which it is based. The main governance
guidelines take into account the set long-term objectives. They are defined in the Governance
System and Policy of Zavarovalnica Triglav d.d., which is adopted by the Management Board and
the Supervisory Board. It is published on SEOnet, the Ljubljana Stock Exchange information
system, and on the Company's website (
www.triglav.eu
).
5.2
Statement of compliance with the Slovenian Corporate Governance Code
In its operations, Zavarovalnica Triglav abided by the Corporate Governance Code (hereinafter:
the Code), which was adopted on 9 December 2021. The Code is published on the Ljubljana Stock
Exchange's website in Slovenian and English. Zavarovalnica Triglav's statement of compliance
with the Corporate Governance Code for 2024 is available on SEOnet and Zavarovalnica Triglav's
official website.
Zavarovalnica Triglav adheres to the provisions of the Code. For well-grounded reasons, the
Company deviated from or did not comply with the following provisions of the Code:
▪
Points 4.1 to 4.3,
which refer to the Diversity Policy
:
In addition to the Companies Act, the Company and its management and supervisory bodies
are subject to the Insurance Act, which requires that the members of the management and
supervisory bodies and the bodies as a whole meet the fit and proper criteria for insurance
companies. When Management Board and Supervisory Board members are appointed,
efforts are made to achieve as much diversity as possible. The Company's Diversity Policy
sets out that if several candidates meet the fit and proper criterion, the candidate who will
contribute more to greater diversity of the Management Board will have priority. The
diversity of expertise and experiences is set out in greater detail in the Fit and Proper Policy
for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d. The
Diversity Policy requires that both genders are represented on the management and
supervisory bodies. The gender balance within the Company, appropriate to the size of its
bodies, objectives and influence on the selection procedures for members of the
management and supervisory bodies, as well as other Company procedures, is not
predetermined. Primarily, the fitness and propriety of the bodies as a whole must be
ensured, in accordance with strict legislative requirements mandating that both individual
members and the bodies collectively meet specific fit and proper criteria for insurance
undertakings. The Diversity Policy does not set goals for each aspect of diversity and for each
body separately, but it does determine the method to ensure diversity as mentioned above
43
and, as a result, has a direct impact on personnel procedures and other processes in the
Company.
▪
Point 5.6,
which refers to an external assessment of the appropriateness of the Corporate
Governance Code by an independent institution
:
The Corporate Governance Statement, as part of the annual report, is reviewed annually by
an independent external auditor. Zavarovalnica Triglav is a regulated company, whose
operations are supervised by the Slovenian Insurance Supervision Agency. One of the key
functions at the Company is internal audit, which not only performs continuous and
comprehensive supervision of the Company's operations but also verifies and assesses
whether the processes of risk management, control procedures and management of the
Company are appropriate.
▪
Point 16.4,
which stipulates that at least once in every three years the Supervisory Board
should ensure an external assessment in which it cooperates with an independent institution
or external experts
:
Each year, the Supervisory Board, with the assistance of competent departments, carries out
assessment of its work and the work of its committees and draws up a report, which it
considers carefully, and adopts an action plan of measures to improve its performance. At
its discretion, the Supervisory Board also performs external assessment by cooperating with
relevant external experts. The last such assessment was performed in February 2023.
▪
Point 21.6,
which refers to the prior approval of the Supervisory Board before the appointment
of the members of the Management Board to the management or supervisory bodies in other
companies
:
Pursuant to the resolution of the Supervisory Board, Management Board members do not
require the prior approval of the Supervisory Board for their appointment to the
management or supervisory bodies of Zavarovalnica Triglav's direct and indirect
subsidiaries and associates. However, the Management Board members promptly inform
the Supervisory Board in writing about their appointment in accordance with point 1 of
paragraph two of Article 62 of the Insurance Act (ZZavar-1).
In its operations, the Company abides by the principles of the Insurance Code, available on the
website of the Slovenian Insurance Association (
www.zav-zdruzenje.si
).
The Company also has its own code, published on its website, which defines its fundamental
values and business principles in order to achieve its business objectives, strategic guidelines and
competitive advantages in a fair and transparent manner and in compliance with the law and
ethics.
The Statement of compliance with the Slovenian Corporate Governance Code is available both
on SEOnet and the Company's official website.
5.3
Management bodies of Zavarovalnica Triglav
The Company has a two-tier governance system in place. Its governance bodies are as follows:
General Meeting of Shareholders, Management Board
and
Supervisory Board
. They operate in
compliance with the primary and secondary legislation, the Articles of Association of
Zavarovalnica Triglav d.d. (hereinafter: the Articles of Association) and adopted rules of
procedure. Zavarovalnica Triglav's Articles of Association are published on its official website.
The most important documents (Articles of Association of Zavarovalnica Triglav d.d., the
Governance System and Policy of Zavarovalnica Triglav d.d. and similar) defining the governance,
controls and operating procedures are published at
https://www.triglav.eu/en/about-
us/zavarovalnica-triglav/documents
.
44
Two-tier governance of Zavarovalnica Triglav
5.3.1
General Meeting of Shareholders
The shareholders of Zavarovalnica Triglav exercise their rights at the General Meeting of
Shareholders, which is convened at least once a year, by the end of August at the latest. It may
also be convened in other circumstances provided by law and the Articles of Association, and
when it is in the interest of the Company.
The powers and operation of the General Meeting of Shareholders are set out in the Companies
Act and the Articles of Association.
The holder of a Zavarovalnica Triglav share has the right to:
▪
one vote at the General Meeting of Shareholders,
▪
proportional dividends from the profit intended for the dividend payment and
▪
a proportional share from the remaining bankruptcy or liquidation estate in the event of
bankruptcy or liquidation.
All shareholders who are entered in the share register managed by KDD – Centralno klirinška
depotna družba d.d. not later than by the end of the seventh day before the date of the General
Meeting of Shareholders have the right to attend the General Meeting. They may exercise their
voting right provided that they register their attendance not later than by the end of the fourth
day before the date of the General Meeting of Shareholders.
The rights and obligations attached to the shares as well as the notes on the restriction of
transfer of shares and on reaching a qualifying holding are described in Section
6.2 Equity
. See
the Insurance Act for further details.
In accordance with the Financial Instruments Market Act, the following three shareholders of
Zavarovalnica Triglav held a qualifying holding as at 31 December 2024:
▪
Zavod za pokojninsko in invalidsko zavarovanje Slovenije (Institute of Pension and Invalidity
Insurance of Slovenia; hereinafter: ZPIZ) is the direct holder of 7,836,628 shares or 34.47%
of the Company's share capital. Its stake in 2024 remained unchanged. On behalf and for
the account of ZPIZ, the shareholder's rights are exercised by Slovenski državni holding d.d.
(hereinafter: SDH).
▪
SDH is the direct holder of 6,386,644 shares or 28.09% of the Company's share capital. Its
stake remained unchanged in 2024.
▪
Erste Group Bank AG - a fiduciary account, Vienna, holds 1,543,798 shares or 6.79% of the
Company's share capital, up 0.08 percentage points on the previous year.
45
According to the data available, as at the reporting date Zavarovalnica Triglav had no other
shareholders whose interests exceeded 5.00% of the share capital, nor any issued securities that
would grant their holders special control rights.
General Meeting of Shareholders in 2024
In 2024, the General Meeting of Shareholders of Zavarovalnica Triglav convened once, at the
49th General Meeting held on 4 June 2024. The total number of shares and voting rights
represented was 17,389,110 or 76.70% of all shares. The shareholders took note of the following
documents:
▪
Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023, including the
independent auditor's report;
▪
Annual Internal Audit Report for 2023;
▪
report of the Supervisory Board of Zavarovalnica Triglav d.d. on the Verification of the
Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023;
▪
opinion given by the Supervisory Board on the Annual Internal Audit Report for 2023.
The General Meeting of Shareholders approved the Remuneration Policy of Zavarovalnica Triglav
d.d. and adopted the Remuneration Report of Zavarovalnica Triglav d.d. for 2023.
The shareholders adopted a resolution on the following distribution of the accumulated profit
of EUR 87,854,038.93 as at 31 December 2023:
▪
A part of accumulated profit in the amount of EUR 39,786,509.00 shall be allocated for
dividend payments. The dividend of EUR 1.75 gross per share shall be paid to the
shareholders appearing in the share register as at 18 June 2024. As at 19 June 2024, the
Company provided funds for the payment of all dividends to the account of KDD – Centralno
klirinška depotna družba d.d.
▪
The distribution of the remaining accumulated profit of EUR 48,067,529.93 shall be decided
in the next few years.
The shareholders granted a discharge for the 2023 financial year to both the Management Board
and the Supervisory Board of Zavarovalnica Triglav.
Due to the expiry of Igor Stebernak's term of office and Jure Valjavec's resignation, Barbara Nose
and Rok Ponikvar were appointed new Supervisory Board members, shareholder representatives.
5.3.2
Management Board
The Management Board manages and governs the Company independently and at its own
responsibility, and presents and represents the Company without limitations. In legal
transactions, the Company is always jointly presented and represented by two members of the
Management Board, one of whom is its President.
In line with the Solvency II Directive, all persons who manage an insurance undertaking must
have adequate professional qualifications (fit) and be appropriate to perform this function, i.e.
be of good reputation and integrity (proper). The fit and proper assessment of the Management
Board members is carried out based on national legislation and internal regulations.
Any person fulfilling the requirements stipulated by the Insurance Act, the Companies Act and
the applicable documents of the Company may be appointed to the Management Board as its
President or member. The fit and proper criteria applying to individual Management Board
members and the Management Board as a collective body are clearly defined in the Fit and
Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d.,
46
which sets out the fit and proper assessment procedure for Management Board members to be
performed before the appointment, periodically, extraordinarily or after the appointment of an
individual Management Board member. With respect to the latter, the Supervisory Board takes
into account the diversity of knowledge and competences, which not only allow comprehensive
functioning of the Management Board, but also contribute to an appropriate variety of skills,
knowledge and experience for professional management of the Company. The members are
required to together possess the relevant knowledge and experience relating to insurance and
financial markets, the business strategy and business models, governance systems, financial and
actuarial analyses, risk management, and the regulatory and legal environment in which the
Company operates.
In line with the Fit and Proper Policy for the Management and Supervisory Board Members of
Zavarovalnica Triglav d.d., a periodic fit and proper assessment was carried out in 2024 for
Management Board members Andrej Slapar, Marica Makoter, Blaž Jakič, Tadej Čoroli and Uroš
Ivanc, and the Management Board as a collective body, as well as an extraordinary assessment
of a Management Board member. All assessments confirmed that the Management Board
members were deemed fit and proper for their positions, and the Management Board as a
collective body was deemed fit and proper to manage the Company with prudence and due
diligence.
The Diversity Policy is also taken into account when appointing an individual member of the
Management Board. Its goal is not only to achieve representation of both genders and various
age groups but also to ensure the complementarity and diversity of the Management Board,
while the proportion of the underrepresented gender among the members of the Company's
management and supervisory bodies has yet to be determined. The appointment of each
Management Board member considers their qualifications, experience and knowledge, as
outlined in the Fit and Proper Policy. If several candidates meet the fit and proper criterion, the
candidate who will contribute more to greater diversity of the Management Board will have
priority. One of the important goals is that both genders are represented in the management
body. A comprehensive approach enables prudent and careful management of the Company,
thus achieving strategic objectives and ensuring long-term values for all key stakeholders. Once
the share of the underrepresented gender is determined, the Company will proceed with
implementing appropriate measures to achieve the desired balance. In 2024, the gender
representation ratio in the Management Board was last 4:1, with the underrepresented gender
accounting for 20%.
On 29 November 2023, the Supervisory Board reappointed Andrej Slapar as the President of the
Management Board for a new five-year term of office. He has held this position since May 2013;
his new five-year term of office began on 13 November 2024. The Supervisory Board agreed with
the President of the Management Board's proposal and reappointed Uroš Ivanc and Tadej Čoroli
as Management Board members. They took office in July 2014. The new five-year term of office
of Uroš Ivanc commenced on 16 July 2024 and that of Tadej Čoroli on 31 July 2024.
Composition and appointment of the Management Board
In accordance with the Company's Articles of Association, the Management Board may have no
less than three and no more than six members, one of whom one is the president. The number
of the Management Board members, their powers, the manner of representation and
presentation and the transfer of the Management Board's authorisations are determined by the
Supervisory Board in the Management Board Rules.
The Management Board is appointed by the Supervisory Board. The term of office of individual
Management Board members is up to five years, with the possibility of reappointment without
47
limitation. Zavarovalnica Triglav has one Worker Director, who is a member of the Management
Board.
The appointment or recall of an individual member or all members of the Management Board is
proposed to the Supervisory Board by the President of the Management Board. Any individual
member or President of the Management Board may be dismissed by the Supervisory Board if
legal grounds for their dismissal have been established.
5.3.2.1
Management Board's powers to increase the share capital
In accordance with the Company's Articles of Association, the Management Board is authorised
to increase the share capital of Zavarovalnica Triglav by up to EUR 14,740,278.36 through new
shares issued for cash contributions within five years of 28 May 2021. The issue of new shares,
the amount of capital increase, the rights attached to the new shares and the conditions for
issuing new shares are decided upon by the Company's Management Board with the consent of
the Supervisory Board. Following a share capital increase, the Supervisory Board is authorised to
amend the Company's Articles of Association.
48
5.3.2.2
Presentation of the Management Board, its functioning and powers
Composition of the Management Board in 2024
First and last name
Function
Area of work in the Management Board
(as at 31 December 2024)
Start of term
of office (the
first)
End of term
of office
Gender
Nationality
Year of
birth
Education
Professional profile
Membership in the supervisory and/or
management bodies of other companies
Andrej Slapar
President
Manages and directs the work of the Management
Board and head office support departments (Internal
Audit
Department
and
Corporate
Communication
Department). In charge of Corporate Accounts Division,
Non-Life Insurance Division, Triglav Group Subsidiary
Management
Division
(excluding
the
subsidiaries
outside Slovenia), Corporate and Legal Affairs Division
and Human Resource Management Division. Also
responsible for arbitration and Nuclear Pool, as well as
for the drawing up and implementation of the strategy
of Zavarovalnica Triglav and the Triglav Group.
22 May 2013
13 November
2029
Male
Slovenian
1972
LL.B.
Management, strategic
management,
commercial law,
insurance and
reinsurance, actuarial
science
Uroš Ivanc
Member
In charge of Non-Life Insurance Actuarial Department,
Life
Insurance
Actuarial
Department,
Accounting
Division, Finance and Controlling Division, excluding
Investment
Department,
Triglav
Group
Subsidiary
Management
Division
–
the
subsidiaries
outside
Slovenia and two head office support departments –
Investment Department and Outward Reinsurance
Department.
Also
r
esponsible
for
mergers
and
acquisitions (M&A), investor relations (IR) and relations
with
credit
rating
agencies,
as
well
as
for
environmental,
social
and
corporate
sustainable
development (ESG) activities.
14 July 2014
16 July 2029
Male
Slovenian
1975
MSc in
Business and
Organisation
Management and
organisation, strategic
management, insurance,
financial management,
financial markets and
analyses, asset
management, actuarial
analyses and risk
management
Trigal, upravljanje naložb in svetovalne
storitve d.o.o.*
Triglav INT d.o.o.
Tadej Čoroli
Member
In charge of Non-Life Insurance Claims
Division,
Insurance Sales Division and Digital Operations and
Client Experience Division.
29 July 2014
31 July 2029
Male
Slovenian
1975
LL.M.
Management, strategic
management,
commercial law,
insurance, marketing
Pozavarovalnica Triglav Re d.d.
Triglav, Upravljanje nepremičnin d.o.o. (from
19 June 2024)
Marica Makoter
Member and
Worker
Director
Represents the workers' interests as set out in the
Worker Participation in Management Act. In charge of
Change and Project Portfolio Management Department
and Back Office Division. Also responsible for the
Strategic Sourcing Department, Compliance Office and
Marketing
Department
(head
office
support
departments).
21 December
2011
23 December
2026
Female
Slovenian
1972
LL.B.
Management, strategic
management,
commercial law,
insurance, human
resources and
organisation, worker
representation
Triglav Skladi d.o.o.
Blaž Jakič
Member
In charge of Life Insurance Division, IT Division, Health
Insurance
Division,
Back
Office
Division,
Digital
Platform and Business Intelligence Division and two
head office support departments – Risk Management
Department
and
Bancassurance
Section.
He
is
responsible for money laundering prevention.
2 March 2023
2 March 2028
Male
Slovenian
1982
BSc in
Economics
Insurance, finance,
accounting, business
strategy and business
models, governance
systems, actuarial
analyses, risk
management
Triglav, pokojninska družba d.d.
Triglav Skladi d.o.o.
Diagnostični center Vila Bogatin d.o.o., Bled
* A member of the company's advisory board.
Andrej Slapar took over the position of the President of the Management Board eleven years ago; in 2024 all members of the Management Board
together performed their function for an average of 8.75 years.
49
5.3.3
Supervisory Board
The Company's conduct of business is supervised by the Supervisory Board. In line with the
Articles of Association, the Supervisory Board is composed of nine members: six shareholder
representatives and three employee representatives. As at 31 December 2024, it consisted of
eight members, six shareholder representatives and two employee representatives.
The term of
office of the Supervisory Board members is four years, and they can be re-elected without a term
limit.
Shareholder representatives are elected by the General Meeting of Shareholders and employee
representatives by the Company's Works Council. The Chairman and Vice Chairman of the
Supervisory Board are elected from among its members representing shareholders. The
appointment and dismissal of the Supervisory Board members is made in accordance with the
applicable legislation and Company regulations. The General Meeting of Shareholders may
dismiss any elected Supervisory Board member before the expiry of their term of office, while
each Supervisory Board member may resign from their position under the conditions and in the
manner laid down by the Articles of Association.
The term of office of Igor Stebernak, a Supervisory Board member, shareholder representative,
expired on 3 June 2024. The term of office of Jure Valjavec, a Supervisory Board member,
shareholder representative, expired on 1 September 2024 following his resignation. The General
Meeting of Shareholders appointed Barbara Nose and Rok Ponikvar as new Supervisory Board
members – shareholder representatives, with their four-year terms of office commencing on 4
June 2024 and 2 September 2024, respectively.
According to the Solvency II Directive requirements, the Supervisory Board members must have
adequate professional qualifications (fit) and be appropriate to perform this function, i.e. be of
good reputation and integrity (proper). Their fit and proper assessment is carried out based on
national legislation and internal regulations, especially the Fit and Proper Policy.
Fit and proper assessment is made before the appointment, periodically, extraordinarily or after
the appointment of an individual Supervisory Board member. In line with this policy, a fit and
proper assessment of the candidates for Supervisory Board members – shareholder
representatives and of the Supervisory Board as a collective body, taking into account the
candidates assessed, was carried out before the appointment of new members also in 2024. The
two newly appointed Supervisory Board members were assessed as fit and proper to perform
this function.
In October 2024, a periodic fit and proper assessment was carried out for all Supervisory Board
members and the Supervisory Board as a collective body, comprising Andrej Andoljšek, Tomaž
Benčina, Monica Cramér Manhem, Tim Umberger, Rok Ponikvar, Barbara Nose, Aleš Košiček and
Janja Strmljan Čevnja. All individual members and the Supervisory Board as a collective body
were assessed as fit and proper.
In October 2024, the periodic fit and proper assessment of the Audit Committee's external
member Luka Kumer was carried out, who is an independent expert qualified in accounting
and/or auditing. It was established that he continues to be fit and proper to perform the duties
of the Audit Committee's external member.
In the same month, a preliminary fit and proper assessment was conducted for Katarina Sitar
Šuštar, the candidate for the new external member of the Audit Committee, an independent
expert qualified in accounting and/or auditing. The candidate was assessed as fit and proper to
perform this function.
50
In assessing its composition and performance in accordance with the Insurance Act and the
Companies Act, the Supervisory Board takes into account that all members possess the relevant
knowledge, skills and experience relating to insurance and financial markets, the business
strategy and business models, governance systems, financial and actuarial analyses, risk
management, and the regulatory and legal environment in which the Company operates. In
addition to the above, if several candidates meet the fit and proper criterion, the Diversity Policy
(diversity in terms of gender, experience in international markets, etc.) is taken into account in
the appointment of new members. The goal is to ensure complementarity and diversity in the
Supervisory Board by taking into account qualifications, experience and knowledge defined in
the Fit and Proper Policy for the Management and Supervisory Board Members of Zavarovalnica
Triglav d.d. This enables prudent and careful supervision of the Company, thereby achieving
strategic objectives and ensuring long-term values for all key stakeholders, representation of
both genders and representation of different age groups. When appointing Supervisory Board
members, the fit and proper requirements stipulated by law and the regulator are primarily
taken into account with respect to both an individual Supervisory Board member and the
Supervisory Board as a whole. Although the proportion of the underrepresented gender among
the members of the Company's management and supervisory bodies has yet to be determined,
appropriate measures are already being implemented to achieve diversity and gender balance.
These principles were also applied in nomination procedures for appointing new Supervisory
Board members in 2024, resulting in a gender representation ratio of 5:3, with the proportion of
the underrepresented gender increasing to 37.5% (25.0% in 2023).
5.3.3.1
Powers of the Supervisory Board
The powers and operation of the Supervisory board are set out by the applicable legislation, the
Company's Articles of Association and the Rules of Procedure of the Supervisory Board (available
on the Company's website). In addition, the Supervisory Board gives consent to the decisions of
the Management Board where the value or an investment exceeds the amount set out in the
Rules of Procedure of the Supervisory Board, i.e. in the event of:
▪
The founding of limited companies in Slovenia and abroad;
▪
The acquisition or sale of Zavarovalnica Triglav's participating interests in domestic or
foreign companies, except in the case of participating interests for which the conventional
portfolio management approach is used;
▪
The issue of debt securities and long-term borrowing from domestic or foreign banks;
▪
The acquisition and sale of real property and investment in real property of Zavarovalnica
Triglav.
In accordance with the law and the Rules of Procedure, the Supervisory Board holds at least one
session per quarter, or more if necessary.
51
5.3.3.2
Supervisory Board in 2024
Composition of the Supervisory Board in 2024
First and last
name
Function
Start of term
of office
(the first)
End of term of
office
Attendance
of sessions
of the
Supervisory
Board /
total
number of
Supervisory
Board
sessions
Gender
Nationality
Year
of
birth
Education
Professional profile
Independence
pursuant to
the Slovenian
Corporate
Governance
Code
Existence
of conflict
of
interest
in 2024
Membership in
the supervisory
and/or
management
bodies of other
companies while
serving on the
Supervisory
Board in 2024
Membership in
Supervisory Board
committees
Function in
Supervisory Board
committees
Attendance of
meetings of
Supervisory
Board
committees /
total number
of meetings of
Supervisory
Board
committees
Andrej Andoljšek
Member
13 June 2017
13 June 2021
9 of 9
Male
Slovenian
1970
BSc in Economics
Financial and general
management, financial markets
and analyses, banking,
corporate governance, business
and financial restructuring of
companies
YES
NO
Sava d.d.
Strategy Committee
Nomination
Committee
Appointment and
Remuneration
Committee
Member
Chairman from
29 November
2023 to 3 June
2024
Member
3 of 3
5 of 5
/
7 of 7
Vice Chairman
Chairman
Member
Chairman
21 June 2017
18 August
2020
14 June 2021
18 June 2021
17 August
2020
13 June 2021
14 June 2025
14 June 2025
Tim Umberger
Member
Vice Chairman
7 June 2023
10 July 2024
9 July 2027
7 June 2027
5 of 9
Male
Slovenian
1980
MSc in Economics
Financial markets and analyses
YES
NO
Gorenjska banka
d.d.
Audit Committee
Strategy Committee
Nomination
Committee
Appointment and
Remuneration
Committee
Member
Member until 17
September 2024
Chairman from 18
September 2024
Chairman from
19 November 2024
Member
6 of 6
2 of 3
/1
1 of 3
/
1 of 7
Barbara Nose
Member
4 June 2024
4 June 2029
3 of 9
Female
Slovenian
1964
BSc in Economics
Finance and insurance markets,
strategy and business model,
risk management, controlling,
accounting and audit, corporate
governance
YES
NO
Luka Koper d.d.
Pošta Slovenije
d.o.o.
Strategy Committee
Audit Committee
Risk Committee
Member
Chairwoman from
10 July 2024
Member
2 of 3
2 of 6
1 of 1
Tomaž Benčina
Member
14 June 2021
14 June 2025
9 of 9
Male
Slovenian
1965
BSc in Economics and
BSc in Metallurgy
Financial markets, business
strategy and business models,
governance system, financial
analyses
YES
NO
Luka Koper d.d.
Appointment and
Remuneration
Committee
Strategy Committee
Chairman
Member
7 of 7
3 of 3
Monica Cramér
Manhem
Member
7 June 2023
7 June 2027
5 of 9
Female
Swedish
1959
BSc in Economics
International regulatory and
other legal requirements,
financial and actuarial analyses
YES
NO
CCR Re, France
Sompo Int'l Lux
Strategy Committee
Risk Committee
Member
Chairwoman
3 of 3
1 of 1
Rok Ponikvar
Member
2 September
2024
2 September
2029
2 of 9
Male
Slovenian
1972
BSc in Economics
Financial markets, governance
system, financial analyses,
business strategy and business
models
YES
NO
Loterija Slovenije
d.d.
Strategy Committee
Risk Committee
Nomination
Committee
Member from 2
September 2024
Member from 2
September 2024
Member from 19
November 2024
2 of 3
1 of 1
/
Igor Stebernak
Chairman
Member
Vice Chairman
18 August
2016
3 June 2020
30 August
2023
2 June 2020
3 June 2024
3 June 2024
5 of 9
Male
Slovenian
1968
BSc in Electrical
Engineering, MBA
Banking, insurance, strategic
management, financial markets
and analyses, controlling,
accounting and business process
reengineering
YES
NO
/
Audit Committee
Strategy Committee
Member
Chairman from
3 June 2024
Member until 3
June 2023
3 of 6
1 of 3
52
External members of Supervisory Board committees in 2024
First and last name
Supervisory Board
committee
Attendance of meetings of
Supervisory Board committees and
total number of committee meetings
Gender
Nationality
Education
Year of birth
Professional profile
Membership in the supervisory bodies of
other companies while serving on a
Supervisory Board committee in 2024
Luka Kumer
Audit Committee Until
19 November 2024
7 of 7
Male
Slovenian
BSc in Economics
1981
Financial markets, business strategy and
business models, governance system,
financial analyses
/
Mateja Lovšin Herič
Nomination Committee
Until 6 June 2024
From 28 November
2024
5 of 5
/
Female
Slovenian
BSc in Economics
1969
Corporate governance and finance
Istrabenz turizem d.d., Koto d.o.o.
Katarina Sitar Šuštar
Audit Committee
From 19 November
2024
/
Female
Slovenian
MSc in Business
1971
Certified auditor, audit of various legal
entities, insurance
The audit committees of the supervisory
boards of Pošta Slovenije d.o.o., and
University of Ljubljana
First and last
name
Function
Start of term
of office
(the first)
End of term of
office
Attendance
of sessions
of the
Supervisory
Board /
total
number of
Supervisory
Board
sessions
Gender
Nationality
Year
of
birth
Education
Professional profile
Independence
pursuant to
the Slovenian
Corporate
Governance
Code
Existence
of conflict
of
interest
in 2024
Membership in
the supervisory
and/or
management
bodies of other
companies while
serving on the
Supervisory
Board in 2024
Membership in
Supervisory Board
committees
Function in
Supervisory Board
committees
Attendance of
meetings of
Supervisory
Board
committees /
total number
of meetings of
Supervisory
Board
committees
Jure Valjavec
Member
14 June 2021
1 September
2024
9 of 9
Male
Slovenian
1975
Master of Science
Business strategy and business
models, governance system
YES
NO
/
Appointment and
Remuneration
Committee
Nomination
Committee
Strategy Committee
Member until 1
September 2024
Member from 29
November 2023 to
3 June 2024
Chairman until 1
September 2023
5 of 7
novanja in
prejemke
5 of 5
1 of 3
Aleš Košiček
Member
11 July 2023
10 July 2027
4 of 9
Male
Slovenian
1966
MSc in Business and
Organisation
Insurance, governance systems,
business strategy and business
models, financial analyses in
the context of Zavarovalnica
Triglav's operations
YES
NO
/
Audit Committee
Nomination
Committee
Appointment and
Remuneration
Committee
Strategy Committee
Member
Member until 3
June 2024
Member from 19
November 2024
Member from 2
September 2024
Member from 18
September 2024
6 of 6
5 of 5
/
prejemke
1 of 7
1 of 7
Janja Strmljan
Čevnja
Member
11 July 2023
10 July 2027
4 of 9
Female
Slovenian
1969
LL.B.
Regulatory and other legal
requirements that apply to
Zavarovalnica Triglav
YES
NO
/
Strategy Committee
Risk Committee
Member
Member
3 of 3
1 of 1
53
By signing the Statement of Independence and Loyalty, the members of the Supervisory Board
undertook to adhere to the principles of independence laid down in item B of the Annex to the
Corporate Governance Code. The statement is available on the company's website. Data on the
remuneration of the Supervisory Board members are disclosed in Section
4.4 of the Accounting
Report
. Their remuneration was in line with the resolution passed by the 41st General Meeting
of Shareholders of Zavarovalnica Triglav.
5.3.3.3
Composition of the Supervisory Board committees and their activities in 2024
In 2024, the Company had the following committees: the Audit Committee, the Appointment
and Remuneration Committee, the Strategy Committee and the newly established Risk
Committee, as well as the Nomination Committee as an ad-hoc committee. Supervisory Board
committees prepare draft resolutions for the Supervisory Board, assure their implementation
and carry out other tasks.
The duties and powers of the committees are set out in the Companies Act, the Rules of
Procedure of the Supervisory Board, Supervisory Board resolutions and the rules of procedure of
individual committees. Their main tasks are presented in the figure below.
54
The Supervisory Board committees and their main tasks
Supervisory Board
Audit Committee
▪
Monitors the financial reporting
and
sustainability reporting process and draws
up reports and proposals for ensuring its
integrity
▪
Monitors the efficiency and effectiveness
of internal controls, internal audit and risk
management systems;
▪
Monitors the obligatory audit of annual
and consolidated financial statements and
reports on the audit findings to the
Supervisory Board;
▪
Is in charge of the auditor selection
procedure, proposes a candidate to the
Supervisory Board to audit the Company’s
annual report and participates in the
drafting of an agreement between the
auditor and the Company;
▪
Reviews and monitors the independence
of the auditor for the Company's annual
report, particularly regarding the provision
of additional non-audit services;
▪
Monitors the quality of the auditor's audit
in accordance with the Guidelines for audit
committees for monitoring the quality of
external auditing adopted by the Agency
for Public Oversight of Auditing and the
Slovenian Directors' Association;
▪
Supervises the integrity of financial
information provided by the Company,
evaluates the drafting of the annual report
and draws up a proposal for the
Supervisory Board;
▪
Cooperates with the Internal Audit
Department, monitors its quarterly
reports, examines the internal documents
of the Internal Audit Department, the
Rules of the Internal Audit Department
and the annual plan of the Internal Audit
Department;
▪
Discusses decisions on the appointment,
dismissal and remuneration of the head of
the Internal Audit Department.
▪
Monitors the Company's annual
compliance reports and reports on
contracts with audit firms and firms in
their networks
Strategy Committee
▪
Discusses and draws up
proposals for the Supervisory
Board regarding the Triglav
Group strategy;
▪
Monitors the implementation of
the strategy;
▪
Discusses and draws up
proposals and opinions for the
Supervisory Board related to the
strategic development and
planning of the Triglav Group.
Appointment and Remuneration
Committee
▪
Proposes criteria for membership in
the Management Board;
▪
Proposes the policies of
remuneration, reimbursement and
other benefits for the Management
Board members;
▪
Preliminary considers the proposals
of the President of the Management
Board related to the management of
the Company;
▪
Performs fit and proper assessments
of the Management Board and
Supervisory Board members;
▪
Provides support and makes
proposals on matters related to the
Supervisory Board (e.g. conflicts of
interest, design and implementation
of a remuneration system for the
Supervisory Board members,
assessment of the Supervisory
Board's work pursuant to the Code
of Corporate Governance).
Nomination Committee (an ad-hoc
committee established to carry out
a nomination procedure for
shareholder representatives)
▪
Prepares criteria for the selection of
candidates for members of the
Supervisory Board, shareholder
representatives, unless the
Supervisory Board determines
otherwise;
▪
Registers the candidates for
members of the Supervisory Board;
▪
Instructs the Appointment and
Remuneration Committee to carry
out a fit and proper assessment of
the candidates;
▪
Submits to the Supervisory Board a
proposal to nominate one or
several candidates for Supervisory
Board members – shareholder
representatives, including the draft
fit and proper assessment of the
candidates for members of the
Supervisory Board.
Risk Committee
▪
Monitors the functioning and
adequacy of the risk management
system;
▪
Advises the Supervisory Board on the
Company's overall current and future
risk appetite and on its risk
management strategy;
▪
Oversees the implementation of
capital and material risk management
strategies;
▪
Reviews key internal documents and
other risk management documents
submitted to, noted by or approved by
the Supervisory Board;
▪
Reviews the annual Solvency II capital
adequacy calculation reports, the
Solvency and Financial Condition
Reports (SFCR) of the Company and
the Group, the own risk and solvency
assessment report, the regular risk
profile reports of the Company and
the Group, and any other reports
related to risk management;
▪
Supervises disclosures and examines
the credit rating agencies' reports for
the year.
55
As at 31 December 2024,
the Audit Committee
was composed of
Barbara Nose as chair and Tim
Umberger, Aleš Košiček and Katarina Sitar Šuštar, an independent external expert, as members.
As at 31 December 2024,
the Appointment and Remuneration Committee
was composed of
Tomaž Benčina as chair and Andrej Andoljšek, Tim Umberger and Aleš Košiček as members.
As at 31 December 2024,
the Strategy Committee
was composed of Tim Umberger as chair and
Tomaž Benčina, Andrej Andoljšek, Monica Cramér Manhem, Barbara Nose, Rok Ponikvar, Aleš
Košiček and Janja Strmljan Čevnja as members.
The Risk Committee
was established by the Supervisory Board during its session on 21 August
2024 and, as of 31 December 2024, comprised the following members:
Monica Cramér Manhem
as chair and Barbara Nose, Janja Strmljan Čevnja and Rok Ponikvar as members.
The Nomination Committee
operates as an ad hoc committee. It was established on 19
November 2024 due to the expiry of the term of office of Supervisory Board members Andrej
Andoljšek and Tomaž Benčina in 2025. The Committee will operate until the election of new
Supervisory Board members, shareholder representatives, at the General Meeting of
Shareholders, but not later than 3 June 2025. It is composed of Tim Umberger as chair, Rok
Ponikvar and Aleš Košiček as members, and Mateja Lovšin Herič as an external member.
See
Section 5.3.3.2 Supervisory Board in 2024
for more information about the structure of
Supervisory Board committees.
5.4
Governance and management of subsidiaries
The Triglav Group is comprised of Zavarovalnica Triglav as the controlling company, its
subsidiaries and associates, and joint ventures. The subsidiaries operate as independent legal
entities in accordance with the applicable local legislation, the resolutions passed by their
general meetings and their management and supervisory bodies, business cooperation
agreements (where applicable) and other adopted internal documents.
The Governance Policy of the Triglav Group's Subsidiaries
(hereinafter: the Policy) sets out the
main guidelines for the governance of subsidiaries, taking into account the Group's long-term
objectives, values and strategy. It was
updated
in
May 2024
.
The systemic governance of subsidiaries, as set out by the Policy, is implemented through
general meetings, supervisory and management bodies of each subsidiary and by applying
standardised and unified key rules and procedures in the areas of expertise. These rules apply to
key risk management, compliance, internal audit and actuarial functions of the subsidiaries,
with their implementation aimed at achieving common minimum standards for core business
performance, effective governance, reporting and control at Group level.
The updated Policy assigns a crucial role to
the three-line governance system
in the effective
management and control of subsidiaries. The Triglav Group Subsidiary Management Division,
key functions, relevant departments and business segments of the parent company are
responsible for ensuring the effective implementation of the Group's governance system.
Through mutual cooperation, they establish and maintain an efficient and transparent Group
governance system.
The three-line governance system supports a clear separation of powers, responsibilities and
effective risk management. At the same time, it ensures that business activities align with the
56
Group's corporate objectives and strategy for harmonious and synergistic operations. The three-
line governance system of subsidiaries includes:
▪
Corporate governance:
It forms part of the first line and involves the active exercise of
management rights by the parent company or its subsidiary as a parent company, in
compliance with the legislation applicable to each subsidiary and its internal regulations.
An essential part of corporate governance is maintaining an effective dialogue between the
Company and its subsidiaries to achieve common goals.
▪
Key function management:
The second line comprises the parent company's key functions
– risk management, compliance, internal audit and actuarial – which support the business
lines in achieving their business objectives. They also ensure that risks within the Company
and the Group, including potential risks, are identified, assessed, monitored and managed
in accordance with applicable legislation and internal regulations. They operate
independently of the business lines to ensure objective risk assessment and control.
▪
Business line management:
The third line consists of the parent company's business lines,
which are responsible for managing business activities at Group level.
Zavarovalnica Triglav adheres to the principle of top-down governance, which is fundamental to
all aspects of governance, strategy and operational decision-making within the Company and its
subsidiaries. This approach ensures that management directions, policies and strategic
objectives are established at the highest level and consistently communicated and implemented
across all levels.
The Policy clearly defines the governance powers of the parent company over its subsidiaries,
the process for identifying risk escalation, and the powers and responsibilities of Group
subsidiaries. It also establishes the foundation for the Remuneration Policy applicable to
members of supervisory and management bodies of subsidiaries, outlines the framework for
transactions between the parent company and subsidiaries, and specifies the subsidiaries'
reporting system.
57
The subsidiary governance system is designed so that Zavarovalnica Triglav, as the parent
company, manages its direct subsidiaries. Accordingly, its direct subsidiaries assume
responsibility for transferring the governance system to their own subsidiaries and actively
managing them. The expected objectives of the system transfer and the implementation of the
activities are further detailed in the
Minimum Standards of Zavarovalnica Triglav d.d. for the
Operations of Subsidiaries
(hereinafter: the Minimum Standards). These standards outline the
basic and key requirements for ensuring the efficient and consistent operation of all Group
members, irrespective of their geographical location or specific activities. The purpose of the
Minimum Standards is to align all Group subsidiaries with the Group's objectives, values and
strategy, while respecting local legislation and accounting for market specificities. The Policy
defines the procedures for preparing, monitoring, implementing, enforcing and updating the
Minimum Standards, outlines the responsibilities of the relevant departments of the parent
company and the management of the subsidiaries, and specifies the actions to be taken in the
event of deviations from the Minimum Standards. The Minimum Standards are regularly
updated. The relevant business segments of the parent company monitor the implementation
of the Minimum Standards insubsidiaries, thereby achieving integration between the
subsidiaries' and Zavarovalnica Triglav's business functions and ensuring a comprehensive
overview at the Group level.
The Company has in place and is implementing a robust and reliable governance system for the
Triglav Group, which is compliant with statutory requirements and comparable to other
insurance groups.
The composition of management and supervisory bodies as at 31 December 2024
Subsidiary
Management
Supervisory function
Slovenia
Pozavarovalnica Triglav Re d.d., Ljubljana
Gregor Stražar – President
Supervisory Board:
Tomaž Rotar – Member
Tadej Čoroli – Chairman
Maja Omahen Petrič – Member
Katja Modec, Janko Šemrov
Triglav, pokojninska družba d.d., Ljubljana
Aljoša Uršič – President
Supervisory Board:
Peter Krassnig – Member
Blaž Jakič – Chairman
Vida Šeme Hočevar – Member
Blaž Kmetec, Miha Grilec,
Miran Kalčič, Vesna Vodopivec,
Borut Simonič, Helena Lokar
Triglav Skladi, družba za upravljanje d.o.o.,
Benjamin Jošar – President
Supervisory Board:
Ljubljana
Andrej Petek – Member
Blaž Jakič – Chairman
Miha Grilec – Member
Jaka Kirn, Damir Verdev, Marica Makoter,
Barbara Gorjup, Damjan Kralj
Triglav INT, holdinška družba d.o.o.,
Tedo Djekanović – Director
Supervisory Board:
Ljubljana
Uroš Ivanc – Chairman
Nataša Veselinović (resigned), Saša Kovačić
Triglav, Upravljanje nepremičnin d.o.o.,
Rok Pivk – Director
Supervisory Board:
Ljubljana
Tadej Čoroli – Chairman
Ksenija Zajc, Nataša Novak Priveršek
Triglav Svetovanje, zavarovalno
Tomaž Dvořak – Director
Supervisory Board:
zastopanje d.o.o., Domžale
Maja Benko – Chairwoman
Jana Polda, Matjaž Novak, Lidija Breznik
Triglav Avtoservis d.o.o., Ljubljana
Janez Obaha – Director
Supervisory Board:
Mladen Jug – Director
Matej Ferlan – Chairman
Nataša Novak Priveršek, Jaka Klement
58
Subsidiary
Management
Supervisory function
Croatia
Triglav Osiguranje d.d., Zagreb
Vilma Učeta Duzlevska – President
Supervisory Board:
Darko Popovski – Member
Tedo Djekanović – Chairman
Lidija Pecigoš Višnjić – Member
Gorazd Jenko,
Alenka Vrhovnik Težak,
Pave Srezović-Pušić
Serbia
Triglav Osiguranje a.d.o., Belgrade
Dragan Marković – President of the Executive
Committee
Supervisory Board:
Tedo Djekanović – Chairman
Ivan Grujić – Member of the Executive
Committee
Fejsal Hrustanović, Vuk Šušić,
Gorazd Jenko, Milan Tomaževič
Montenegro
Lovćen Osiguranje a.d., Podgorica
Matjaž Božič – Chief Executive Officer
Board of Directors:
Stanko Mugoša – Executive Director
Tedo Djekanović – Chairman
Tomaž Žust, Alenka Vrhovnik Težak,
Marjeta Gorinšek, Mateja Geržina
Lovćen životna osiguranja a.d., Podgorica
Zorka Milić – Executive Director
Board of Directors:
Ljubica Kovačević – Chairwoman
Slobodanka Vukadinović, Danilo Pavličić
Bosnia and Herzegovina
Triglav Osiguranje d.d., Sarajevo
Edib Galijatović – President
Supervisory Board:
Emir Krivošija – Member
Tedo Djekanović – Chairman
Simon Vidmar, Janko Šemrov,
Ivica Vulić, Robert Trnovec
Triglav Osiguranje a.d., Banja Luka
Janez Rožmarin – Director
Management Board:
Biljana Grahovac – Member of the Executive
Committee
Midhad Salčin – President
Dragan Berić – Member of the Executive
Committee
Emir Čaušević, Gregor Railić
North Macedonia
Triglav Osiguruvanje a.d., Skopje
Gjorgje Vojnović – Chief Executive Officer
Board of Directors:
Vojdan Jordanov – Executive Director
Tedo Djekanović – Chairman
Darko Popovski, Matej Ferlan,
Blaž Kmetec, Gjorgje Vojnović,
Vojdan Jordanov, Gjorgji Jančevski
Triglav Osiguruvanje Život a.d., Skopje
Hristina Đambazovska Anastasov – Chief
Board of Directors:
Executive Officer
Tedo Djekanović – Chairman
Ivan Sotošek, Vilma Učeta Duzlevska,
Gjorgji Jančevski, Vladimir Mišo Čeplak,
Hristina Đambazovska Anastasov
Triglav penzisko društvo a.d., Skopje
Tihomir Petreski – President
Supervisory Board:
Marijan Nikolovski – Member
Aljoša Uršič – President
Rok Pivk, Blaž Kmetec, Andraž Rangus
5.5
External and internal audit
The financial statements of the Triglav Group and Zavarovalnica Triglav are audited by Deloitte
revizija d.o.o., which was appointed in 2022 for the second time in a row for a three-year period.
The auditor reports its findings to the Management Board, the Supervisory Board and the Audit
Committee.
The report on the work of the Internal Audit Department is presented in Section
9.1 Risk
management system.
59
5.6
Internal controls and risk management in relation to financial reporting
The Group's integrated internal control and risk management system is continuously adapted to
the development, organisational changes and good practices, thereby maintaining its
effectiveness. The system complies with the basic statutory requirements for insurance
undertakings set out in the Companies Act and the Insurance Act, as well as special
implementing regulations of the Insurance Supervision Agency on the establishment and
maintenance of a suitable internal control and risk management system.
The characteristics and operation of the risk management system is discussed in detail in Section
9.
Risk management
. The system was set up in all organisational levels and processes and
includes:
▪
A clear organisational structure with a precisely defined and transparent system of duties,
responsibilities and powers;
▪
Efficient procedures for an ongoing control, error prevention, and identification,
assessment, management and monitoring of risks to which the insurance undertakings are
or may be exposed in the course of their operations;
▪
An adequate internal control system that includes appropriate administrative and
accounting procedures (reporting, working procedures, risk exposure limits and physical
controls);
▪
Ensuring compliance with the applicable regulatory requirements.
The Internal Audit Department is an independent organisational unit, established in compliance
with the law. It regularly reviews the effectiveness of the internal control and risk management
system and offers upgrade proposals as well as reports to the Management Board, the Audit
Committee and the Supervisory Board.
The accuracy, completeness and timeliness of financial reporting as well as compliance with
applicable regulations are ensured by the internal control system established by the parent
company and implemented by the Group at all levels. Accounting controls are based on the
principles of appropriate sharing of responsibilities. They include checking the performance of
transactions, keeping up-to-date records, ensuring the matching of balance of books of account
with the actual balance, separation of the records from the execution of transactions,
professionalism of accountants and their independence. Accounting controls are closely linked
to IT controls, which, inter alia, restrict and control access to the data and applications and ensure
completeness and accuracy of data capturing and processing.
The processes for identifying, assessing, monitoring and managing tax risks are described in
more detail in Section
2.11 Tax policy of the Accounting Report
.
5.7
Notes on the takeover legislation
Zavarovalnica Triglav is subject to the Takeover Act (hereinafter: ZPre-1).
The share capital structure of Zavarovalnica Triglav, the rights and obligations attached to the
shares, the restriction on transfer of shares and the absence of shares that would grant their
holders special control rights are described in detail in Section
6. The share and shareholders of
Zavarovalnica Triglav.
60
5.8
Disclosure of existence of any agreements or authorisations regarding shares or voting
right
Zavarovalnica Triglav is not aware of any shareholder agreements that could cause a restriction
on the transfer of shares or voting rights.
The Company's Management Board is not authorised by the General Meeting of Shareholders to
buy its own shares. The Management Board's authorisation to increase the share capital is
described in Section 5.3.2.1. The issue of new shares, the amount of capital increase, the rights
attached to new shares and the conditions for issuing new shares are decided on by the
Company's Management Board with the consent of the Supervisory Board.
Zavarovalnica Triglav has no employee share scheme.
The Company is not aware of any agreements that would become effective, change or expire on
the basis of a changed control of the Company or as a consequence of a takeover bid as defined
by the ZPre-1.
Zavarovalnica Triglav did not enter into any agreements with the members of its management
or supervisory bodies or employees which would provide for remuneration if a takeover bid in
line with the ZPre-1 caused them to resign, be dismissed without justified grounds, or caused
their employment to be terminated in some other manner.
Andrej Slapar
President of the Management
Board
Uroš Ivanc
Management Board
Member
Tadej Čoroli
Management Board
Member
Marica Makoter
Management Board
Mamber
Blaž Jakič
Management Board
Member
61
6.
The share and shareholders of Zavarovalnica Triglav
-
Zavarovalnica Triglav's share achieved a total return of 21.0%.
-
The Triglav Group received an "A" credit rating for the ninth consecutive time, with S&P
upgrading its medium-term outlook from stable to positive.
-
There were no significant changes in Zavarovalnica Triglav's shareholder structure. The
share of international shareholders slightly increased and the share of retail shareholders
continued to grow.
-
Zavarovalnica Triglav issued a subordinated bond in July 2024.
6.1
Share of Zavarovalnica Triglav
Zavarovalnica Triglav's share (ZVTG) is listed on the Ljubljana Stock Exchange Prime Market and
has been traded on the stock exchange market since the end of 2008. Its
total annual return
in
2024 was
21.0%
and the dividend yield was 4.3%. As at 31 December 2024, the price-to-book
ratio (P/B) was 0.90, while the price-to-earnings ratio (P/E) was 8.13.
With a market capitalisation of EUR 920.8 million, Zavarovalnica Triglav was
the fourth largest
Slovenian listed company
in 2024, its ZVTG share being one of the most liquid shares on the
Ljubljana Stock Exchange. The ZVTG share turnover (excluding block trades) reached EUR 24.4
million, remaining at the same level as the previous year. A third of ZVTG share turnover was
carried out by
the liquidity provider
, which has rendered its services since 2019.
Key figures relating to the ZVTG share (EUR)
Items
2024
2023
Maximum closing price
41.40
40.30
Minimum closing price
33.60
29.20
Closing price as at 31 December
40.50
34.70
Book value per share (parent company)*
32.62
30.02
Book value per share (consolidated data)
43.50
39.19
Net earnings per share (consolidated data)
5.76
0.71
Market capitalisation as at 31 December
920,773,494
788,909,636
Average daily turnover (excluding block trades)
98,980
102,764
Dividend per share
1.75
2.50
Number of shares
22,735,148
22,735,148
Percentage of free float
30.6%
30.7%
Traded on
Ljubljana Stock Exchange - LJSE
ISIN
SI0021111651
Ticker symbol
ZVTG
Bloomberg
ZVTG SV
Reuters
ZVTG.LJ
Credit rating (S&P Global Ratings, AM Best)
S&P Global: »A«, positive
medium-term outlook
»A«, stable medium-term
outlook
AM Best: »A«, stable
medium-term outlook
* The effects of the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav on 1 October 2024 are explained in more detail in Section
2.7 Merger of the subsidiary
Triglav, Zdravstvena zavarovalnica
in the Accounting Report.
62
Movement in the ZVTG share price in 2024 compared to the Ljubljana Stock Exchange SBITOP index
and the sectoral index of European insurance companies STOXX Europe 600 Insurance (the baseline
date:31 December 2023 = 100)
Movement in the ZVTG share price (left axis) and turnover (right axis) in EUR in 2024 (the baseline
date: 31 December 2023 = EUR 34.70)
In the first half of the year,
the ZVTG share price
was still influenced by the lower results of the
previous year but later gained momentum due to promising half-year and nine-month results,
as well as an improved annual profit guidance. The Company paid dividends to shareholders in
June, with 17 June 2024 being the cut-off date (see Sections
5.3.1 General Meeting of
Shareholders
and
6.4 Dividends and the dividend policy
for more information). On an annual basis,
the ZVTG share price increased by 17%, in line with the growth of the STOXX Europe 600
Insurance index for European insurance companies. The Ljubljana Stock Exchange SBITOP index,
in which the ZVTG share holds a 9.0% share, rose by 33%.
90%
100%
110%
120%
130%
140%
Value in %
ZVTG
SBITOP Index
STOXX Europe 600 Insurance Index
0
80
160
240
320
400
480
560
640
720
800
33
34
35
36
37
38
39
40
41
42
Turnover in EUR thousand
ZVTG price in EUR
ZVTG turnover
ZVTG closing price
118%
133%
117%
40.50
63
6.2
Equity
As at 31 December 2024, Zavarovalnica Triglav's
share capital
remained unchanged and
amounted to EUR 73,701,391.79 compared to the previous year. It is divided into 22,735,148
ordinary registered no-par value shares constituting one class. The shares are issued in
dematerialised form and are freely transferable. Each share represents the same stake and
corresponding amount in share capital, and all have been fully paid up. Each share gives its
holder the right to one vote at the general meeting of shareholders and a proportionate share of
profit allocated for dividend payment. In the event of bankruptcy or liquidation, the shareholders
are entitled to a proportionate share of residual bankruptcy or liquidation estate after the payoff
of preference shareholders.
In acquiring shares, Zavarovalnica Triglav's existing and potential shareholders are required to
comply with the Insurance Act (ZZavar-1). An authorisation of the Slovenian Insurance
Supervision Agency is a prerequisite for:
▪
The acquisition of shares of an insurance undertaking by which a person acquires or exceeds
a qualifying holding (i.e. a direct or indirect holding of shares or other rights that gives the
holder a minimum 10% share of voting rights or capital, or that gives the holder a share of
voting rights or capital lower than 10%, but nevertheless allows the holder to significantly
influence the management of the company). In its decision on issuing an authorisation to
acquire a qualifying holding, the Insurance Supervision Agency determines the level of the
share in the voting rights or capital of the insurance undertaking for which the authorisation
is issued as one of the following ranges:
▪
The share of the voting rights or capital of the insurance undertaking that is equal to or
greater than a qualifying holding and less than 20%;
▪
The share of the voting rights or capital of the insurance undertaking that is equal to or
greater than 20% and less than one third;
▪
The share of the voting rights or capital of the insurance undertaking that is equal to or
greater than one third and less than 50%;
▪
The share of the voting rights or capital of the insurance undertaking that is equal to or
greater than 50%;
▪
The share on the basis of which the future qualifying holder becomes the parent
company of the insurance undertaking;
▪
Before any subsequent acquisition of shares by the qualifying holder that would result in
the qualifying holding exceeding the range subject to the already issued authorisation for
acquisition of a qualifying holding;
▪
For the entities that agree to a concerted acquisition of the shares of the insurance
undertaking or a concerted exercising of management rights arising from the shares (joint
qualifying holders) and intend to acquire a holding by which they would jointly reach or
exceed a qualifying holding of the undertaking;
▪
Before any subsequent acquisition of shares by the joint qualifying holders that would result
in their joint qualifying holding exceeding the range subject to the already issued
authorisation for acquisition of a qualifying holding.
The holder of shares of an insurance undertaking that were acquired or are being held in
contravention of the ZZavar-1 has no voting rights with respect to those shares. See the ZZavar-
1 for further information.
64
6.3
Shareholder structure
There were no significant changes to Zavarovalnica Triglav's shareholder structure in 2024.
The
Company's top ten shareholders held a 76.8% stake, up by 1 percentage points relative to 31
December 2023. Among the shareholders holding a stake of more than 5% are two funds owned
by the Republic of Slovenia (ZPIZ Slovenije and SDH d.d.) and the Croatian pension fund, which
is listed in the Company's share register under the fiduciary account of its custodian bank.
The Company's
free float
, representing shares held by shareholders with less than a 5%
participating interest, stood at 30.6% (2023: 30.7%). As at 31 December 2024, the ownership of
the free float was dispersed among 8,218 shareholders from 30 countries. Among them were
approximately 40 international banks with fiduciary accounts held on behalf of their clients, as
well as international institutional investors
, primarily from Europe and the USA. International
shareholders held a 15.9% stake (0.3 percentage points more than the year before), while the
share of
Slovenian institutional shareholders
stood at 7.8% (0.5 percentage points less).
In recent years, Slovenian
retail shareholding
has gradually increased. This
trend
continued in
2024, with their stake increasing by 0.2 percentage points to 13.7%. Slovenian retail investors
actively traded the ZVTG share, with targeted investor relations activities promoting this
engagement.
Zavarovalnica Triglav’s shareholder structure as at 31 December 2024
Source: Centralna klirinško depotna družba
62.6%
15.9%
13.7%
7.8%
Two funds owned by the Republic of Slovenia
International shareholders
Retail investors
Slovenian institutional shareholders
65
Zavarovalnica Triglav’s top ten shareholders as at 31 December 2024
Source: Centralna klirinško depotna družba
The minority shareholder structure of Zavarovalnica Triglav by the country of origin as at 31
December 2024 (the share of the free float in %)
In 2024, ZVTG shares were bought by President of the Management Board Andrej Slapar and
Management Board members Uroš Ivanc and Tadej Čoroli.
0.38%
0.51%
0.60%
0.71%
1.02%
1.88%
2.31%
6.79%
28.09%
34.47%
Miljana Excitement, Croatia
Intercapital Securities Ltd., Croatia - fiduciary account
OTP Banka, Croatia - fiduciary account
Clearstream Banking AG Germany
Hrvatska poštanska banka, Croatia – fiduciary account
Citibank, Great Britain – fiduciary account
Unicredit Bank Austria, Austria – fiduciary account
Erste Group Bank, Austria – fiduciary account
SDH, Slovenia
ZPIZ Slovenije, Slovenia
Ownership in %
From other 20 countries: 0.4%
Bosnia and Herzegovina: 0.2%
UAE: 0.4%
Sweeden: 0.4%
Czech Republic: 0.5%
USA: 1.4%
Germany: 2.3%
Great Britain: 6.3%
Austria: 7.7%
Croatia: 10.3%
Slovenia: 70.2%
66
The number of shares held by the members of the Management and Supervisory Boards as at 31
December 2024
First and last name
Function
Number of shares
Participating
interest
Andrej Slapar
President
1,800
0.01%
Uroš Ivanc
Member
1,042
0.00%
Tadej Čoroli
Member
750
0.00%
Marica Makoter
Member
150
0.00%
Blaž Jakič
Member
2,864
0.01%
Management Board
6,606
0.03%
Supervisory Board
0
0.00%
Total Management Board and Supervisory Board
6,606
0.03%
6.4
Dividends and dividend policy
At Zavarovalnica Triglav,
the dividend policy
is regarded as a firm commitment to its
shareholders. The Company strives to implement its dividend policy consistently, thereby
fulfilling shareholders' expectations of the ZVTG share as a stable, safe and profitable long-term
investment.
Zavarovalnica Triglav's dividend policy
provides as follows:
"The Company pursues an attractive
and sustainable dividend policy. The part of consolidated net profit of the preceding year which is
to be allocated to dividend payment accounts for at least 50%. The Company will strive to pay out
a dividend no lower than the dividend paid out in the preceding year. As thus far, the future
implementation of the dividend policy will be subordinated to achieving the medium-term
sustainable target capital adequacy of the Triglav Group. The proposal of the Management Board
and the Supervisory Board as regards the annual distribution of accumulated profit of the
Company will therefore take into account the following three objectives in a balanced manner: to
ensure prudent capital management of the Triglav Group and its financial stability, to reinvest net
profit in the implementation of the strategy of growth and development of the Triglav Group and
to pay out attractive dividends to
its shareholders."
The strategic objectives of capital management in conjunction with the dividend policy are
described in Section
9.2 Capital position
.
As seen from the figure below, the implementation of the dividend policy over the last five years
has been influenced by specific circumstances, primarily due to the COVID-19 pandemic and one-
off negative events that impacted the Group's results. The Management Board and the
Supervisory Board took these circumstances into account when proposing the distribution of
accumulated profit for the year, while the General Meeting of Shareholders supported their
proposals every year. In
2024
, the Company paid a total dividend amount that far exceeded the
Group's 2023 earnings (see Section
5.3.1 General Meeting of Shareholders
). In doing so, it pursued
the objectives of the dividend policy and its consistency, considering the unique circumstances
in which the Group operated in 2023 and the improved outlook for 2024.
67
Gross dividend per share by year (EUR), its share of consolidated net profit for the preceding year
for the dividend payment and the dividend yield in 2013–2024
6.5
Investor relations management
Through
the active management of relations with investors, shareholders and analysts
, the
Company promotes the attractiveness of its financial instruments. In doing so, it follows best
international practices and, as a company listed on the Ljubljana Stock Exchange Prime Market,
helps to shape the standards of this market.
The Company aims to provide
clear and consistent information to the market
.
All key
information about the Company's operations, position and outlook is regularly published in both
Slovenian and English on the SEOnet information system of the Ljubljana Stock Exchange and
on the Company's website (
www.triglav.eu
), which was upgraded in 2024 to further improve the
clarity, quality and accessibility of key information for investors. In 2024, efforts were also
focused on improving the external analytical basis for the ZVTG valuation.
Open and constructive relationships with shareholders, investors and analysts are maintained
through videoconferencing meetings, conference calls and email communication.
A calendar of
the 12 investor events attended or organised in 2024
, along with the presentations, is available
on the Company's website (
www.triglav.eu
). Four of these events were organised for
international and Slovenian institutional investors following the announcement of business
results. Special attention is given to
retail investors
. In 2024, the share was presented to them at
three dedicated events.
Furthermore, the Company seeks to achieve the highest possible
participation in general
meetings of shareholders
. In 2024, 77% of all shares with voting rights were represented at the
General Meeting of Shareholders (see Section
5.3.1 General Meeting of Shareholders
for more
information).
Shareholders, investors and analysts can direct their inquiries to the contact details provided
below.
2.00
1.70
2.50
2.50
2.50
2.50
2.50
0,00
1.70
3.70
2.50
1.75
63%
56%
67%
64%
69%
82%
70%
0%
53%
74%
51%
247%
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
0%
50%
100%
150%
200%
250%
300%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Gross dividend per share (in EUR)
% of consolidated net profit for the previous year
10.5%
8.7%
10.8%
7.5%
8.3%
10.6%
0.0%
4.6%
10.7%
7.2%
4.3%
Dividend yield
7.2%
68
Information for shareholders and investors:
Zavarovalnica Triglav d.d., Ljubljana
Miklošičeva cesta 19, 1000 Ljubljana
Helena Ulaga Kitek, Director of Investor Relations Department
Telephone: +386 1 47 47 331
Email:
investor.relations@triglav.si
6.6
Credit rating of the Triglav Group and Zavarovalnica Triglav
The credit ratings of the Triglav Group – and thus its parent company Zavarovalnica Triglav and
its subsidiary Pozavarovalnica Triglav Re – are assigned by two renowned credit rating agencies:
S&P Global (hereinafter: S&P) and AM Best. In 2024, the Group was again assigned
an "A" stand-
alone credit rating
by both agencies.
All individual elements of the overall credit rating were
rated
as high as the year before
and substantiated in a similar way.
Both rating agencies gave a stable medium-term outlook, but in December 2024,
S&P upgraded
its outlook from stable to positive.
The upgrade reflects the agency's expectation that the Triglav
Group will continue to perform well in a positive business environment, sustain its strong
capitalisation, expand operations in markets outside Slovenia, and retain its leading position in
the Slovenian insurance market.
The agency assessed the Group's strategy to 2030 as ambitious
in terms of profitability, growth and further diversification of its operations. In addition, the
Group aims to maintain its robust capital position and implement balanced dividend policy.
Credit ratings of Zavarovalnica Triglav since 2008
Year
Credit rating
Medium-term outlook
Rating agency
2024
A
Positive
S&P Global
Stable
AM Best
Stable
S&P Global
2023
A
Stable
AM Best
S&P Global
2022
A
Stable
AM Best
S&P Global
2021
A
Stable
AM Best
S&P Global
2020
A
Stable
AM Best
S&P Global
2019
A
Stable
AM Best
S&P Global
2018
A
Stable
AM Best
S&P Global
2017
A
Stable
AM Best
S&P Global
2016
A
Stable
AM Best
S&P Global
2015
A-
Positive
AM Best
S&P Global
2014
A-
Positive
AM Best
Stable
S&P Global
2013
A-
Stable
S&P Global
69
Year
Credit rating
Medium-term outlook
Rating agency
Stable
AM Best
BBB+
Positive
S&P Global
2012
A-
Negative
S&P Global
2011
A
Negative
S&P Global
2010
A
Stable
S&P Global
2009
A
Stable
S&P Global
2008
A
Stable
S&P Global
The latest credit rating reports of the credit rating agencies from 2024, are available on the
website
www.triglav.eu
under the Investor Relations tab.
6.7
Bonds
In July 2024, Zavarovalnica Triglav issued a 20.5-year subordinated bond (Tier 2 under Solvency
II), callable after 10.5 years as part of the Triglav Group's regular capital management activities.
The total issue size of the bond was EUR 100 million, with a yield of 6.75%. The success of this
issue further confirms the high level of confidence that institutional investors have in the Group.
Zavarovalnica Triglav issued two subordinate bonds, which are included in own funds for the
purpose of calculating capital adequacy under Solvency II. The first bond was issued in 2019. See
the table below for more information.
Bond of Zavarovalnica Triglav
ISIN
XS1980276858
XS2848005166
Type
Subordinated bond (Tier 2 pursuant to the
Solvency II regulations)
Subordinated bond (Tier 2 pursuant to the
Solvency II regulations)
Issue size in EUR
50,000,000
100,000,000
Currency
EUR
EUR
Coupon rate and payment
Fixed at 4.375% annually until first call date,
payable annually
Fixed at 6.70% annually until first call date,
payable annually
Thereafter variable at 3-month Euribor plus
4.845% (equal to the original initial credit
spread + 1 percentage point), payable quarterly
Thereafter variable at 3-month Euribor plus
4.937% (equal to the original initial credit
spread + 1 percentage point), payable quarterly
First call date
22 October 2029
16 January 2035
Maturity date
22 October 2049
16 January 2045
Maturity in years
30.5
20.5
Regulated market
Luxembourg Stock Exchange
Luxembourg Stock Exchange
Issue rating
BBB+ (S&P)
BBB+ (S&P)
70
7.
Macroeconomic environment and market trends
-
The favourable financial market situation had a positive impact on the growth of financial
investments, assets under management and the investment result.
-
The Triglav Group maintained its leading market position among insurance groups in
Slovenia and Montenegro, while strengthening its market share in the Slovenian, Serbian
and Macedonian insurance markets.
-
Total written premium increased across most insurance markets.
7.1
The general economic environment worldwide and in Slovenia
In 2024, the global economy was marked by moderate and declining economic growth,
accompanied by uncertainties arising from factors such as the armed conflict in the broader
Middle East and the ongoing war between Russia and Ukraine. In early June, the European
Parliament elections created political uncertainty in France, while in the US, the presidential
elections and the November announcement of tariff increases by the newly elected
administration added to the uncertainty in the second half of the year. Inflationary pressures
eased gradually throughout the year.
According to the latest estimates by international institutions, the US recorded strong real GDP
growth, while the euro area saw weak growth. Growth in the US was driven by robust private
consumption, whereas in the euro area, it was constrained by reduced investment spending and
slower growth in other GDP components. The economic outlook worsened in the second half of
the year. This is especially evident in the euro area, where the Purchasing Managers' Index (PMI)
for services fell to near stagnation, while the manufacturing PMI, in contraction for over two
years, dropped further towards the year's end, in contrast to trends observed in the US. Despite
these challenges, according to Eurostat's initial estimate, the euro area unemployment rate fell
to 6.3% in November, its lowest level since the introduction of the euro, while year-on-year
headline inflation remained at just 2.4% in December.
Slovenia's macroeconomic situation mirrored those of the euro area, with moderate private
consumption
growth
and
declining
investment
spending.
Slower
export
recovery
in
international trade negatively impacted overall GDP growth. Although the unemployment rate
began to rise during the year, it remained significantly below the euro area average. According
to Eurostat, inflation stood at 5.2% in November, with Slovenia's year-on-year inflation
estimated at 2.0% in December.
The latest forecasts from international institutions indicate gradual but slowing economic
growth in the euro area, with headline inflation projected to remain around 2%, despite ongoing
domestic inflationary pressures. According to the European Central Bank's (ECB) December
forecast, the 20 euro area countries are expected to experience below-trend real GDP growth of
0.7% in 2024 and 1.1% in 2025, with headline inflation easing to 2.4% and 2.1%, respectively.
In its December forecast for 2024, the Bank of Slovenia projected modest real GDP growth for
Slovenia at only 1.4%, with potential strengthening to 2.2% in 2025. Headline inflation is
expected to align closely with the euro area, at 2.0% in 2024 and 2.2% in 2025. The outlook is
accompanied by risks, primarily stemming from geopolitical uncertainties and potential
protectionist measures in international trade.
Financial markets were affected by uncertainty surrounding the timing and pace of major central
banks' easing of austerity measures. In June, the ECB responded to a deteriorating economic
outlook by reducing the deposit rate by 0.25 percentage points, the first such cut in the year.
71
Subsequently, it implemented three additional cuts of the same magnitude, bringing the rate to
3.0%. Similarly, the US Federal Reserve (Fed) initiated its first rate cut in September, lowering its
key interest rate by 0.5 percentage points, followed by two further reductions of 0.25 percentage
points each, ending the year at 4.25–4.50%. Representatives of both banks repeatedly
emphasised that their decisions would be guided by future macroeconomic data releases,
avoiding any commitment to a predetermined monetary policy direction. However, in
December, the chair of the Federal Reserve cautioned that the decline in US inflation was
progressing too slowly.
Bond markets experienced a rise in required yields in the first half of the year, followed by a
decline in the second half, accompanied by considerable volatility. Over the reporting period, the
required yield on Germany's 10-year government bond increased by 0.34 percentage points,
reaching 2.36%. After nearly two years, the spread between the required yields on the 10-year
and 2-year German Bund turned positive, closing the year at 0.29 percentage points. The
required yield on Slovenia's 10-year government bond remained largely unchanged throughout
the year, finishing at 3.03%. Other euro area government bonds exhibited similar trends in
required yields. Political uncertainty contributed to a significant rise in French government bond
yields, which ended the year at 3.19%. In contrast, the improved economic outlook led to a
notable decrease in Croatian and Italian bond yields, which closed the year at 3.03% and 3.52%,
respectively.
Corporate bond markets and equity markets, in particular, reflected a markedly positive investor
sentiment. Among the fastest-growing global equity indices, the US S&P 500 saw a 23.3% rise,
mainly driven by technology stocks. The Japanese NIKKEI and the German DAX followed, with
gains of 19.2% and 18.8%, respectively. The Chinese Hang Seng (17.7%) and the European Euro
Stoxx 50 (8.3%) showed slightly smaller increases. In 2024, the Slovenian SBITOP index also
experienced a strong growth of 33.0%.
7.2
Environmental impact on the Triglav Group's operations
1
The Group's business result was impacted by major CAT events in a total estimated value of EUR
45.5 million (2023: EUR 212.2 million). Hailstorms resulted in EUR 28.8 million in claims in
Slovenia and a total of EUR 0.5 million in claims in Croatia and Serbia. The Group's estimated
reinsurance claims totalled EUR 16.2 million due to the earthquake in Taiwan, the June floods
and other weather events in Germany, Italy, Switzerland and Austria, the unrest in New
Caledonia, Hurricane Beryl in the Caribbean, the September floods in Central Europe caused by
Cyclone Boris, Typhoon Yagi in Vietnam and China, and the December storms in Western Europe,
Greece and Cyprus, and the earthquake in Vanuatu. The net effect of these CAT events amounted
to EUR 41.0 million.
The favourable financial market situation had a positive impact on the growth of financial
investments, assets under management and the investment result. Inflation continued to have
an impact on the increase of prices of materials and services and therefore on higher claims paid
and operating expenses.
1
GRI 201-2, SASB: FN-IN-450a.2.
72
7.3
Global insurance market
According to latest official data from Swiss Re reinsurance company, total premium volume in
the global insurance market
reached USD 7.2 trillion in 2023, recording
a 2.8% growth in real
terms
year-on-year (6.1% nominal growth). Non-life insurance premium rose by 3.9%, while life
insurance premium increased by 1.3%. Advanced markets accounted for 81% of global insurance
premiums, achieving 2.0% premium growth, while emerging markets grew by 6.6%. The written
premium in the euro area declined by 1.1% in real terms compared to the previous year.
The US holds the largest and growing share of the global insurance market at 44.9% (2022:
44.1%), followed by China (10.1%), the UK (5.2%), Japan (5.0%) and the EU markets, France (3.9%)
and Germany (3.4%).
Global economic growth, rising real incomes as inflation moderates and higher interest rates are
driving demand for insurance. Swiss Re estimates that global premiums will grow by 3.2% in
2024, with higher interest rates particularly boosting demand for life insurance (savings
products). In non-life insurance, inflationary pressures have pushed up premium rates in recent
years and thus the real growth in global premiums in 2023 (3.9%). Lower inflation will have a
positive impact on claims payments. Swiss Re forecasts global premium growth of 2.6% in 2025,
with slightly higher growth in life insurance.
Real global premium growth in 2022–2025
Source: Swiss RE, SIGMA 3/2024
7.4
Triglav Group's key insurance markets
The Triglav Group sells insurance in seven insurance markets in six countries: in the Adria region
in Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia. The
Group also operates in the wider international environment via its branch in Greece and
partnerships with foreign insurance brokerage and agency companies, as well as with reinsurers.
The most developed insurance market in the Adria region is Slovenia, where Zavarovalnica
Triglav operates, and to which the specialised insurer Triglav, Zdravstvena zavarovalnica merged
on 1 October 2024. In other markets across the region, compulsory insurance (motor vehicle
liability insurance) continues to dominate, while the most notable growth in non-compulsory
insuranc is seen in health insurance. Pozavarovalnica Triglav Re operates throughout the region
and in the wider international environment.
-0.8%
0.8%
-3.8%
2.8%
3.9%
1.3%
3.2%
3.3%
2.9%
2.6%
2.6%
2.7%
Total
Non-Life insurance
Life insurance
2022
2023
2024 estimate
2025 forecast
73
The Group increased gross written premium in all insurance markets in the region, except in
Slovenia, where supplemental health insurance was terminated at the end of 2023, and in
Bosnia and Herzegovina, where ownership consolidation and business optimisation are
ongoing. The highest relative premium growth was achieved in the Serbian, North Macedonian
and Montenegrin insurance markets (see Section
8. Operations of the Triglav Group and
Zavarovalnica Triglav
for more information).
Main macroeconomic data for 2024 by Triglav Group insurance market and in the EU
Macroeconomic indicators
Slovenia
Croatia
Serbia
Montenegro
Bosnia and
Herzegovina
North
Macedonia
European
Union
Population (in million)
2.1
3.8
6.6
0.6
3.5
1.8
447.6
GDP growth (estimate, in %)
1.5
3.4
3.9
3.7
2.5
2.2
1.1
2024 GDP (estimate, in USD billion)
73.2
89.7
82.6
8.1
28.4
15.9
19,403.2
2024 GDP per capita (estimate, in USD)
34,544
23,380
12,514
12,802
8,221
8,659
62,659.6
2024 inflation rate (estimate, in %)
2.0
4.0
4.5
4.2
2.2
3.3
2.6
2024 unemployment rate (estimate, in %)
3.5
5.6
9.1
11.0*
13.2
13.0
n.a.
Source: International Monetary Fund (IMF), World Economic Outlook, October 2024, *Agency for Statistics of Montenegro (Q3 2024)
The Triglav Group continues to be the leader among insurance groups in Slovenia and
Montenegro, and ranks third in North Macedonia. Its market share grew in Slovenia, Serbia and
North Macedonia.
Market shares and market position of the Triglav Group in the Adria region in 2024
Market
Market share
Market share trend
Ranked in 2024
Ranked in 2023
Slovenia
40.8 %
+ 1.3 percentage point
1
1
Croatia**
4.8 %
– 0.4 percentage point
8
8
Serbia*
7.7 %
+ 0.2 percentage point
5
5
Montenegro
34.6 %
– 0.4 percentage point
1
1
Bosnia and Herzegovina
8.3 %
– 1.0 percentage point
5
4
- Federation of BiH
9.7 %
– 0.9 percentage point
4
3
- Republic of Srbska***
5.5 %
– 1.1 percentage point
8
5
North Macedonia
13.8 %
+ 0.4 percentage point
3
3
* Data for January–September 2024.
** Market share calculations for the Croatian insurance market are based on premium paid.
*** Including the market shares of Triglav Osiguranje, Banja Luka and the branch of Triglav Osiguranje, Sarajevo in Banja Luka.
Presented below are the characteristics of individual markets and the market position of Group
members.
7.4.1
Slovenia's insurance market
According to Swiss Re's latest available data, Slovenia's well-developed insurance market ranked
30th globally in 2022 in terms of premium per capita (32nd the previous year) and 29th in terms
of insurance penetration (premium as a % of GDP), two places higher than the year before. In
2023, it represented 0.3% of the euro area market, where the premium per capita (insurance
density) stood at EUR 2,327 (2022: EUR 2,256) and the premium accounted for 6.2% of GDP
(2022: 6.4%).
In 2023, premium per capita in Slovenia climbed to EUR 1,443, reaching its highest level to date.
Premium as a percentage of GDP stood at 4.8% (0.1 percentage points lower than in 2022),
reaching its lowest level since 2003, due to Slovenia's high GDP growth. Nevertheless, the
insurance industry remains one of the most important economic sectors.
74
Development of Slovenia's insurance market
Premium per capita (data for 2023)
EUR 1,443
Premium as percentage in GDP (data for 2023)
4.8%
Insurance market growth index in 2024
90.3
Source: Slovenian Insurance Association (SZZ)
As at 31 December 2024, a total of
12 insurance companies, five foreign branches and two
reinsurance companies
operated in Slovenia's insurance market, all members of the Slovenian
Insurance Association (SZZ). The aforementioned merger of Triglav, Zdravstvena zavarovalnica
into its parent company resulted in one fewer insurer on the market compared to the previous
year. These data exclude direct insurance transactions of insurers from other EU Member States
(FOS).
In 2024, insurance companies collected
EUR 2.8 billion
in gross written insurance, coinsurance
and reinsurance premiums, down by
9.7%
year-on-year (this calculation does not take into
account internal transfers of assets for the payment of pension annuities). The decline in
premium is due to the aforementioned termination of supplemental health insurance at the end
of 2023. Excluding this premium, which amounted to EUR 599.8 million in 2023, premium
growth in the Slovenian insurance market would have been 11.9%. The highest premium
increases were achieved by motor vehicle insurance with 15% growth, other damage to property
insurance, fire and natural disaster insurance, and unit-linked life insurance.
The Slovenian insurance market remains highly concentrated, with the four largest insurers
holding an 83% market share.
Zavarovalnica Triglav
continues to be the market leader with a
39.4% market share, followed by Zavarovalnica Sava with a 22.2% market share. Among
insurance groups,
the Triglav Group
(the parent company and Triglav, pokojninska družba)
continues to hold the dominant position, having increased its market share by 1.3 percentage
points to 40.8%, followed by the Sava Insurance Group with a 26.6% market share.
The market share of the Triglav Group and Zavarovalnica Triglav in 2024 and premium growth of
the Slovenian market and the Triglav Group (gross written insurance, coinsurance and reinsurance
premiums excluding internal transfers of assets for the payment of pension annuities)
Triglav Group
Zavarovalnica Triglav*
Growth index 2024/2023
Market share
Change
Market share
Change
Slovenian
market
Triglav Group
Non-life insurance
44.7%
+ 2.6 p.p.
44.7%
+ 2.6 p.p.
85
91
Non-life insurance - excluding health
insurance
45.1%
– 1.0 p.p.
45.1%
– 1.0 p.p.
115
112
Health insurance
33.7%
+ 2.0 p.p.
33.7%
+ 2.0 p.p.
10
11
Life insurance
31.3%
– 0.5 p.p.
26.4%
– 0.5 p.p.
106
104
Total
40.8%
+ 1.3 p.p.
39.4%
+ 1.1 p.p.
90
93
* Zavarovalnica Triglav's figures for 2023 have been adjusted and include the premium of Triglav, Zdravstvena zavarovalnica.
** In the calculation of market share, pension insurance contracts are considered as insurance premium, whereas under IFRS 17 they are
financial contracts under the "fund inflows" item.
75
The market shares of insurers and insurance groups in Slovenia in 2024 and comparison with the
previous year
Source: Slovenian Insurance Association (SZZ)
Among supplemental voluntary pension insurance providers,
Triglav, pokojninska družba
held
an
18.7% market share
as at 31 December 2024 (0.1 percentage point lower than the previous
year).
As at 30 June 2024,
Pozavarovalnica Triglav Re
held a market share of
58.2%
in the Slovenian
reinsurance market, recording an increase of 2.4 percentage points year-on-year.
7.4.2
Croatia
Based on strong economic growth in the first half of the year, which continued into the third
quarter of 2024, the National Bank of Croatia estimates annual GDP growth to reach 3.7% (IMF:
3.8%), with a gradual moderation over the next two years. The main drivers of growth are robust
domestic demand, supported by favourable labour market developments, highly stimulative
fiscal policy and substantial private sector investment. Exports of goods also strengthened, while
exports of services started to decline.
According to the Croatian Bureau of Statistics, the annual consumer price inflation rate declined
significantly (from 8.4% in 2023 to 3.4%). The primary factor contributing to moderating
inflation was the much lower expected core inflation (excluding energy and food prices), while
the decline in food price inflation was less pronounced. However, the central bank forecasts that
elevated inflation could persist, driven by strong domestic and foreign demand, particularly for
travel-related services, a strong labour market and significant salary growth. Core and food price
inflation are projected to slow further in 2025 and 2026, while energy price inflation may
stabilise at a slightly higher level than estimated for 2024.
Insurance market
Development of Croatia's insurance market
Premium per capita (data for 2023)
EUR 454
Premium as percentage in GDP (data for 2023)
2.3%
Insurance market growth index in 2024
109.9
Source: Croatian Insurance Bureau
13.8%
1.9%
1.9%
5.0%
16.9%
20.9%
39.5%
5.7%
2.2%
3.1%
6.1%
15.5%
26.6%
40.8%
Others
Merkur
Grawe
Modra zavarovalnica
Generali
Sava Insurance Group
Triglav Group
2024
2023
76
As at 31 December 2024, a total of 14 insurance companies were active in the Croatian market,
of which nine were composite insurers, four non-life insurers and one life insurer. Their total
written premium was 9.9% higher than the year before (market share calculations for Croatia's
insurance market are based on premium paid). Non-life and life insurance premiums increased
by 11.2% and 4.2% respectively. In total written premium, non-life insurance premium rose to
82.6% (2023: 81.6%), while life insurance accounted for the rest.
Market concentration continued to be high, with top three insurers controlling 51% of the
market. With a 25.5% market share, Croatia osiguranje continued to maintain its dominant
position (0.3 percentage points more than in the preceding year). With a 4.8% market share,
down by 0.4 percentage points relative to the year before,
Triglav Osiguranje, Zagreb
maintained
its eighth place.
7.4.3
Serbia
Moody's ("Ba2", positive outlook) and Fitch ("BB+", positive outlook) have affirmed the Republic
of Serbia's sovereign credit rating, while S&P Global ("BBB–", stable outlook) upgraded its rating.
The rating decision was based on appropriate and timely actions and stability, both of which are
key to preserving investment and consumer confidence.
According to the Statistical Office of the Republic of Serbia and the IMF, real GDP growth is
estimated at 3.9%, while the Central Bank of Serbia forecasts medium-term growth in the range
of 4–5%. The inflation rate has been declining since April 2023, reaching the target range of 3.4%
in May 2024. The Central Bank expects inflation to remain within the target range of 3% ± 1.5%
over the medium term.
Typical labour market developments include growth in employment and real growth in average
salary (by 9.3% in January–October 2024). According to the data from the Statistical Office of the
Republic of Serbia, the unemployment rate in the third quarter of 2024 stood at 8.1%, while the
employment rate reached a record high of 51.9%.
Insurance market
Development of Serbia's insurance market
Premium per capita (data for 2023)
EUR 201
Premium as percentage in GDP (data for 2023)
1.9%
Insurance market growth index in Q1-Q3 2024
114.7
Source: National Bank of Serbia
Serbia's insurance market was characterised by high concentration, where 16 insurance
companies were active (six composite insurers, six non-life insurers and four life insurers). The
top four insurers control almost two thirds of the market. Total written premium increased by
14.7% in the first nine months of 2024. Non-life insurance premium recorded 15.9% growth,
while life insurance premium growth stood at 9.4%. In total written premium, non-life insurance
premium climbed to 82.3% (compared to 81.5% in the preceding year).
Our insurer in Serbia,
Triglav Osiguranje
,
Belgrade
, increased its market share to 7.7% (2023:
7.5%), maintaining its fifth place. Its written premium growth was higher than the Serbian
insurance market growth (index 117.6).
77
7.4.4
Montenegro
According to IMF estimates, GDP growth in Montenegro stood at 3.7%, with the same rate
forecast for 2025. In the services and IT sectors, the country should remove more barriers to
facilitate entry and employment in these areas, as well as implement reforms and invest in the
green economy to align with the European Union's standard of living.
Inflation in 2024 was reported at 2.1% by Eurostat and 4.2% by the IMF. The easing of price
pressures at the EU level is expected to result in a gradual moderation, with the IMF forecasting
an average of 3% per year over 2025–2027.
The unemployment rate reached 11.0% at the end of September (13.1% at the end of 2023). The
total number of unemployed in Montenegro at the end of November was 33,205.
Both S&P Global and Moody's upgraded Montenegro's credit rating in 2024. S&P Global twice
positively assessed Montenegro's creditworthiness, revising its "B" rating from stable to positive
in March, then upgrading it from "B" to "B+" with a stable outlook in August. The key factors
behind the upgrade were a significant reduction in public debt, high nominal GDP growth,
continued progress on structural reforms as part of the EU accession process and a recovery in
the tourism sector, which strengthened Montenegro's balance-of-payments position. Moody's
upgraded the rating from "B1" to "Ba3" with a stable outlook, confirming that Montenegro is
improving its economic parameters, achieving macroeconomic stability, and providing positive
signals and security to both existing and potential investors.
Insurance market
Development of Montenegro's insurance market
Premium per capita (data for 2023)
EUR 194
Premium as percentage in GDP (data for 2023)
1.7%
Insurance market growth index in 2024
112.3
Source: Insurance Supervision Agency of Montenegro
As at 31 December 2024, a total of nine insurance companies were active in Montenegro's
insurance market (five non-life insurers and four life insurers), generating 12.3% more written
premium than the year before. The non-life premium volume grew by 17.6% and the life
premium volume by 11.1%. In total written premium, non-life insurance continued to account
for the bulk (79.3%).
The Triglav Group
, represented by
Lovćen Osiguranje
and
Lovćen životna osiguranja
in
Montenegro, maintained its leading position in the market, securing a 34.6% market share
(compared to 35.0% in the previous year). The Group is followed by Sava Osiguranje and Uniqa
Group (non-life and life insurance together) with a 16.9% and 16.0% market share respectively.
Both Group members recorded 11.1% premium growth.
7.4.5
Bosnia and Herzegovina
S&P Global affirmed Bosnia and Herzegovina's sovereign credit rating of "B+" with a stable
outlook for 2024.
Over the past two decades, Bosnia and Herzegovina has made significant development progress,
achieving upper middle-income status and becoming a candidate for European Union
membership. Further development requires economic and energy structural reforms as well as
improved coordination at all government levels.
78
According to the latest World Bank analysis (March 2024), Bosnia and Herzegovina has
significantly reduced its external current account deficit. However, major challenges remain,
with real GDP lagging behind regional peers and living standards at approximately one-third of
the European Union average.
The IMF forecasts Bosnia and Herzegovina's economic growth at 2.5% in 2024, double that of
the previous year. However, it warns of rising budget deficits and excessive public spending,
which could threaten sustainable development. Encouragingly, inflation continues to decline
and is expected to drop from 6.1% in 2023 to 2.2% in 2024.
The number of unemployed fell by 7% (as of October 2024), with the IMF estimating an
unemployment rate of 13.2%.
Insurance market
Development of Bosnia and Herzegovina's insurance market
Premium per capita (data for 2023)
EUR 157
Premium as percentage in GDP (data for 2023)
2.0%
Insurance market growth index in 2024
110.3
Source: FBIH Insurance Supervision Agency, RS Insurance Agency
As at 31 December 2024, a total of 24 insurance companies were active on the very small but
highly competitive insurance market of Bosnia and Herzegovina, of which 10 were domiciled in
the Federation of BiH and 14 in Republika Srpska, including branches. In the BiH market as a
whole, written premium increased by 10.3%, with premium in the Federation of BiH growing by
9.9% and in Republika Srpska by 11.1%. In total written premium, non-life insurance premium
remained dominant, accounting for 80.9%.
The Agram corporate group (Adriatic osiguranje and Euroherc) retained its leading market
position in
the Federation of BiH
, holding a 23.6% market share.
Triglav Osiguranje, Sarajevo
held a 9.7% market share (2023: 10.6%), ranking fourth (compared to third the previous year).
Holding an 11.5% market share, Grawe osiguranje maintained a dominant position in the
Republika Srpska
market.
Triglav Osiguranje, Banja Luka
and
Triglav Osiguranje, Sarajevo
branch
together achieved a 5.5% market share (down by 1.1 percentage points from the previous
year) and ranked eighth (compared to fifth the year before).
In
Bosnia and Herzegovina
,
the Triglav Group
held an 8.3% market share (a decrease of 1.0
percentage point year-on-year), ranking fifth among the insurance groups.
7.4.6
North Macedonia
North Macedonia's economy is projected to grow by 2.2% in 2024 according to the IMF, and by
2.1% in 2025, according to the North Macedonian Ministry of Finance. Meanwhile, the IMF
forecasts a stronger growth of 3.6% in 2025.
The annual inflation rate has been volatile in recent years, fluctuating between negative and
significant positive values. While inflation is expected to decline in 2024 (IMF estimate: 3.3%,
Eurostat: 3.5%), the country faces significant challenges in maintaining price stability. The World
Bank identified several factors contributing to inflationary pressures in North Macedonia,
including rising commodity prices, labour market imbalances and fiscal imbalances. The
country's high public debt and reliance on external financing could further exacerbate inflation.
For 2025, the IMF forecasts inflation at 2.0%.
79
The unemployment rate declined in 2024, reaching 12.3% in the third quarter, while the labour
force participation rate reached 52.6%. The Ministry of Finance forecasts the unemployment rate
at 12.5% and expects it to fall to 11.2% in 2025.
Insurance market
Development of North Macedonia's insurance market
Premium per capita (data for 2023)
EUR 128
Premium as percentage in GDP (data for 2023)
1.7%
Insurance market growth index in 2024
111.3
Source: Insurance Supervision Agency of North Macedonia
A total of 17 insurance companies were active in North Macedonia's insurance market (11 non-
life insurers and six life insurers). Total written premium increased by 11.3% in 2024. Non-life
insurance premium, accounting for 81.9% of total written premium (0.8 percentage points lower
than the previous year), grew by 10.3%, while life insurance premium rose by 16.3%.
The Triglav Group
operates through two insurers, which together achieved a market share of
13.8% (2023: 13.4%), maintaining its third place among insurance groups. Holding a 10.1%
market share (down 0.1 percentage points year-on-year),
Triglav Osiguruvanje, Skopje
ranked
second among insurers. Specialising in non-life insurance, it maintained a 12.4% market share.
Triglav Osiguruvanje Život, Skopje
significantly increased its share in the life insurance market
to 20.5% (2023: 18.1%), thanks to strong premium growth (index 131).
7.5
Asset and investment fund management market in Slovenia
A total of five asset management companies operated
in Slovenia
, which managed the net asset
value of EUR 6.2 billion in
mutual funds
as at 31 December 2024, up by 31% year-on-year. Triglav
Skladi is one of the leading asset managers in investment funds, with a market share of 30.8%
(compared to 31.2% in 2023). In 2024, it managed
EUR 1.9 billion in mutual fund assets
, up by
29% year-on-year.
Discretionary mandate services
, provided by four companies, accounted for EUR 2.7 billion of
discretionary mandate assets at the 2024 year-end, down by 3% relative to the 2023 year-end.
Triglav Skladi increased its market share
in the discretionary mandate segment
to 12.7%
(2023:
7.6%), and its assets under management rose by 61% to
EUR 336.1 million
.
80
8.
Operations of the Triglav Group and Zavarovalnica
Triglav
-
The Triglav Group performed well, exceeding expectations. Its results were also positively
impacted by one-off events, particularly in the Health segment.
-
Earnings before tax totalled EUR 159.0 million, reflecting strong performance across all
business segments.
-
The situation in the financial markets had a positive impact on the return on the Group's
investments, with claims development being relatively favourable.
-
The combined ratio for the Non-Life and Health segments stood at a favourable 93.6%.
In 2024,
the Group
achieved
earnings before tax of EUR 159.0 million
in 2024 (2023: EUR 21.1
million), surpassing the mid-year estimate of EUR 130–150 million. Of this amount, EUR 16.1
million relates to discontinued operations (2023: EUR –27.8 million), specifically the effects of
the terminated supplemental health insurance business in Slovenia. The remaining EUR 142.9
million represents the result from continuing operations (2023: EUR 48.8 million).
Net earnings
amounted to EUR 131.4 million (2023: EUR –16.3 million). The Group achieved strong
performance across all activities and business segments.
Net earnings were also positively
impacted by one-off events (state compensation received and the release of provisions in the
Health segment, both relating to discontinued operations, and the sale of an associate).
Backed
by significant asset-liability maturity matching,
other comprehensive income
amounted to EUR
6.3 million (2023: EUR 34.7 million).
Return on equity
was 14.0%, driven by the strong increase
in net earnings.
The total business volume
was EUR 1,717.6 million, compared to a target of approximately EUR
1.6 billion. It was down 1% year-on-year due to the termination of supplemental health
insurance in Slovenia, which in 2023 generated EUR 190.0 million in written premium. Excluding
the written premium from terminated insurance, total business volume growth would have
been 11%.
Total business volume of the Triglav Group by segment (EUR million)
Zavarovalnica Triglav
achieved
earnings before tax
of EUR 117.6 million (2023: EUR 15.8 million)
and
net earnings
of EUR 98.2 million (2023: EUR 14.2 million). Earnings before tax from
continuing operations, i.e. excluding supplemental health insurance, amounted to EUR 101.4
million, compared to EUR 43.5 million the previous year (for further details on the merger of
Triglav, Zdravstvena zavarovalnica and its impact see Sections
2.7 Merger of the subsidiary
107.8
223.0
229.5
1,177.7
1,738.0
112.4
56.2
244.6
1,304.4
1,171.6
Asset
Management
Health
Life
Non-Life
Total
2024
2023
81
Triglav, Zdravstvena zavarovalnica, 2.9 Reporting by business segment
and
3.7.6 Non-current
assets held for sale and discontinued operations
in the Accounting Report). The insurance
operating result of EUR 84.4 million (2023: EUR –10.6 million) was predominantly influenced by
a decrease in claims incurred in the Health and Non-Life segments. The net investment result
grew by 36% to EUR 33.8 million. It was positively influenced by higher interest income (index
130) and returns on alternative investment classes, whereas the corresponding gains on disposal
of investments in associates were lower than last year due to lower dividend income (index 49).
In the past year, a positive impact on the net investment result (and thus on earnings before tax)
was recorded due to the release of provisions for not achieving the guaranteed yield, amounting
to EUR 4.3 million was recorded, but this was not the case in 2024. The Company's other
comprehensive income amounted to EUR 0.7 million (2023: EUR 33.3 million), influenced by
changes in required yields in 2024.
Certain categories of the Group's operations and the structure of earnings generated in 2024 are
explained in more detail below.
The Group's
total revenue
of EUR 1,393.2 million was down 2%, primarily due to lower insurance
revenue in the Health segment following the termination of supplemental health insurance.
Insurance revenue
declined by 4% to EUR 1,298.0 million, whereas income from asset
management grew by 24% to EUR 49.4 million and other income rose by 34% to EUR 45.9 million,
mainly due to the state compensation under the Decree on setting the maximum price of the
supplemental health insurance premium of EUR 11.0 million.
Insurance revenue of the Triglav Group by segment (EUR million)
The Group generated
EUR 1,622.3 million in consolidated gross written premium
, which is 2%
less year-on-year as a result of the termination of supplemental health insurance in Slovenia;
excluding this impact, premium growth would have been 10%.
This impact is also the reason
why, in absolute terms, 13% less premium was written on Slovenia's market (otherwise it would
have been 6%), whereas a 21% growth was recorded in the international market and a 9%
growth in other markets of the Adria region. A total of 56.0% of premium was earned in the
Slovenian insurance market (2023: 62.7%) and 20.7% in the remaining markets of the Adria
region (2023: 18.5%), while the share of international insurance and reinsurance increased by
4.5 percentage points to 23.3%.
223.2
85.4
1,042.6
1,351.2
43.3
98.4
1,156.3
1,298.0
Health
Life
Non-Life
Total
2024
2023
82
Gross written premium of the Triglav Group by market (EUR million)
Insurance service expenses
fell considerably (by 25%) and amounted to EUR 991.8 million. The
decline was attributable to an 84% reduction in insurance service expenses in the Health
segment following the termination of supplemental health insurance, as previously noted, and
a 13% reduction in the Non-Life segment, primarily due to high CAT claims in the previous year.
The Life segment expenses were 11% higher.
Insurance service expenses of the Triglav Group by segment (EUR million)
The Group's combined ratio for the Non-Life and Health segments
stood at favourable 93.6%,
down by 8.3 percentage points year-on-year. Backed by a relatively favourable claims
development, the combined ratio for the Non-Life segment improved by 5.6 percentage points
to 94.0%, and the combined ratio of the Health segment improved by 28.2 percentage points to
84.1% The key drivers of its significant decrease were lower insurance service expenses for health
insurance claims due to the termination of supplemental health insurance and the release of
provisions for this insurance. On the revenue side, the decrease was influenced by state
compensation under the Decree on setting the maximum price of the supplemental health
insurance premium (see Section
2.3 Health segment
for more information). Excluding the impact
of supplemental health insurance (i.e. discontinued operations), the combined ratio for the
1,043.9
96.9
90.7
47.4
41.8
31.3
311.7
909.2
114.9
91.3
47.0
46.4
35.9
377.5
Slovenia
Serbia
Croatia
Bosnia and
Herzegovina
Montenegro
North Macedonia
International
insurance and
reinsurance
2023
2024
249.3
59.8
1,014.2
1,323.3
40.1
66.2
885.5
991.8
Health
Life
Non-Life
Total
2024
2023
83
Health segment would have been 117.8% (with a claims ratio of 73.3% and an expense ratio of
44.5%). The total combined ratio for the Non-Life and Health segments would have been 94.9%
(with a claims ratio of 66.6% and an expense ratio of 28.3%). The increase in the expense ratio to
28.1% (2023: 25.6%) was mainly driven by the changed structure of insurance revenue following
the termination of supplemental health insurance, which had a high claims ratio and a low
expense ratio. Excluding the impact of supplemental health insurance, the expense ratio would
have been 28.8% in 2023.
Combined ratio for the Non-Life and Health segments of the Triglav Group
The combined ratio for the Non-Life and Health segments decreased across most insurance
markets, with the exception of Montenegro (higher claims ratio). In Croatia, the combined ratio
exceeded 100%, reaching 104.5%, though this marked a 3.6 percentage point decrease compared
to the previous year. As a result of the insurance portfolio adjustment, an improvement in
profitability in this market is expected to continue.
Combined ratio for the Non-Life and Health segments of the Triglav Group by market
The Group's CSM of new contracts
amounted to EUR 48.8 million (index 115), the bulk of which
(84%) was generated in the Life segment and the remaining 16% in the Non-Life segment. The
share of the CSM of new contracts in total contractual service margin was 17.0%, a decrease of
0.7 percentage points year-on-year, also due to an increase in the contractual service margin
76.3%
65.5%
25.6%
28.1%
2023
2024
Expense ratio
Claims ratio
101.9%
93.6%
102.8%
108.1%
100.0%
101.3%
95.6%
100.0%
92.2%
104.5%
98.7%
94.7%
97.9%
97.7%
Slovenia
Croatia
Serbia
Bosnia and
Herzegovina
Montenegro
North Macedonia
2023
2024
84
resulting from changes in expected cash flows. The release of the contractual service margin to
profit or loss amounted to EUR 47.7 million in the reporting period, up by 20% year-on-year.
As at 31 December 2024,
the Group's contractual service margin
amounted to EUR 286.8 million,
up by EUR 48.4 million (index 120).
This was primarily due to changes in expected cash flows
arising from adjustments in assumptions in the Life segment (see
Section 8.2 Life segment
for
further details).
85
Structure of earnings before tax of the Triglav Group
Structure of earnings before tax of the Triglav Group*
2024
2023
Non-Life
Life
Health
Asset
Management
Total
Non-Life
Life
Health
Asset
Management
Total
Insurance operating result
69,084,585
19,804,608
8,620,876
97,510,069
3,641,356
16,684,632
–27,377,596
–7,051,608
Insurance revenue
1,156,299,596
98,399,942
43,252,835
1,297,952,373
1,042,646,914
85,367,869
223,171,882
1,351,186,665
State compensation pursuant to the Decree on
supplemental health insurance premium
10,996,355
10,996,355
0
Claims incurred
627,530,982
27,161,982
23,996,976
678,689,940
769,196,929
25,603,176
226,446,868
1,021,246,973
Acquisition and administrative costs incl. non-att. items
304,338,440
48,590,117
18,007,025
370,935,582
290,661,755
42,030,166
25,319,883
358,011,804
Net reinsurance service result
–139,958,713
272,006
–1,244,211
–140,930,918
29,702,036
1,619,193
285,341
31,606,570
Net other insurance revenue and expenses
–15,386,876
–3,115,241
–2,380,102
–20,882,219
–8,848,910
–2,669,088
931,932
–10,586,066
Net investment result
32,865,549
10,523,083
1,247,919
4,355,021
48,991,572
11,039,199
1,942,121
–2,945,661
12,196,256
22,231,915
Result from non-insurance operations
–1,118,837
9,987
472,074
13,177,336
12,540,560
–132,442
317,352
–1,089,949
6,785,169
5,880,130
Insurance service expenses to insurance revenue
49,364,063
49,364,063
39,685,487
39,685,487
Operating expenses
13,510,736
7,818,872
3,684,670
36,417,154
61,431,432
13,147,035
8,160,186
1,506,833
31,269,108
54,083,162
Net other income and expenses
12,391,899
7,828,859
4,156,744
230,427
24,607,929
13,014,593
8,477,538
416,884
–1,631,210
20,277,805
Earnings before tax
100,831,298
30,337,678
10,340,868
17,532,357
159,042,201
14,548,113
18,944,105
–31,413,205
18,981,424
21,060,437
Earnings before tax of discontinued operations
16,147,704
16,147,704
–27,775,868
–27,775,868
Earnings before tax of continuing operations
100,831,297
30,337,678
–5,806,835
17,532,357
142,894,497
14,548,113
18,944,105
–3,637,338
18,981,424
48,836,305
*
The presentation of the Health segment includes the health insurance business of the Group insurance companies that sell these insurance products and the non-insurance company complementing this business,
whereas last year it only included Triglav, Zdravstvena zavarovalnica. The Health segment presentation also includes the investment portion of own insurance portfolios. The change therefore affects the Non-Life
segment presentation.
The Group's
insurance operating result
amounted to EUR 97.5 million (2023: EUR –7.1 million), with strong growth achieved by all three segments.
The Non-Life segment's insurance operating result (EUR 69.1 million) was mainly positively affected by an 11% increase in insurance revenue due to
past premium adjustments and business volume growth and a sharp 18% decrease in claims incurred (see Section
8.1 Non-Life segment
for more
information). The insurance operating result before tax of the Life segment increased by 19% to EUR 19.8 million (see Section
8.2 Life segment
for
more information). In the Health segment, the operating result reached EUR 8.6 million, while last year it amounted to EUR –27.4 million (see Section
8.3 Health segment
for more information on this and the impact of discontinued operations).
The net reinsurance service result, with a relatively normal volume of CAT claims, amounted to EUR –140.9 million (compared to EUR 31.6 million in
the previous year, which was positive due to an exceptionally high volume of CAT claims). Furthermore, due to the increased business volume and
slightly less favourable reinsurance conditions (primarily NAT CAT protection), reinsurance expenses rose (index 109).
86
Acquisition and administrative costs including non-attributable items were 4% higher. The
increase was recorded in the Life and Non-Life segments.
The net investment result
grew to EUR 49.0 million (2023: 22.2 million), driven by favourable
trends in financial markets and gains on disposal of a participating interest in an associate. The
investment result amounted to EUR 159.7 million (2023: EUR 83.8 million), whereas the financial
result from insurance contracts was negative at EUR –118.5 million (2023: EUR –69.7 million).
Gains on disposal of investments in associates amounted to EUR 6.9 million (index 310) and
impairment losses on investments in associates and joint ventures amounted to EUR –66
thousand (2023: EUR –2.3 million). The change in provisions for not achieving the guaranteed
yield of EUR 908 thousand had a positive impact on the result, but to a lesser extent than in the
previous year (2023: EUR 8.1 million).
The result from non-insurance operations before tax
rose to EUR 12.5 million (2023: EUR 5.9
million). In this respect, earnings before tax of EUR 13.2 million (index 194) were recorded in the
Asset Management segment (non-insurance operations), EUR 472 thousand in the Health
segment, and EUR –1.1 million in the Non-Life segment. Income from asset management rose
by 24%, operating expenses were 16% higher and net other income amounted to EUR 230
thousand (2023: EUR –1.6 million).
Earnings before tax of the Triglav Group (EUR million)
Earnings before tax of the Triglav Group by segments (EUR million)
-7.1
22.2
5.9
21.1
97.5
49.0
12.5
159.0
Insurance operating result
Net investment result
Result from non-insurance
Earnings before tax
2023
2024
14.5
18.9
-31.4
19.0
21.1
100.8
30.3
10.3
17.5
159.0
Non-Life
Life
Health
Asset Management
Earnings before tax
2023
2024
87
Operating expenses
The Group's consolidated operating expenses, including other attributable insurance service
expenses,
grew by 5% to EUR 450.8 million. Operating expenses for continuing operations
increased by 9%. Operating expenses were 7% higher year-on-year at EUR 463.9 million, while
other attributable insurance service expenses were up 28% (EUR 30.5 million). The change in
deferred acquisition costs reduced operating expenses by EUR 27.4 million (index 201), driven by
an increase in written premium.
Operating expenses of the Triglav Group by nature
2024
2023
Index
Share
Acquisition costs
107,782,991
92,666,926
116
23.2%
Cost of goods sold
52,458
–65,286
0.0%
Depreciation/amortisation costs
27,327,519
26,291,666
104
5.9%
Depreciation/amortisation costs of leased assets
6,054,268
6,699,012
90
1.3%
Depreciation/amortisation costs of other operating assets
21,273,251
19,592,654
109
4.6%
Labour costs
206,498,232
197,947,600
104
44.5%
Wages and salaries
143,838,211
136,779,849
105
31.0%
Social and pension insurance costs
31,205,439
29,779,769
105
6.7%
Other labour costs
31,454,582
31,387,982
100
6.8%
Costs of services
122,191,835
117,264,369
104
26.3%
Costs of advertising, representation and sponsorship
25,736,029
23,610,478
109
5.5%
Maintenance costs
16,873,880
16,722,521
101
3.6%
Costs of material and energy
8,524,083
10,047,184
85
1.8%
Costs of payment transactions and banking services
2,381,188
2,550,277
93
0.5%
Insurance premium costs
2,073,784
2,113,737
98
0.4%
Costs of intellectual services
9,466,647
9,403,593
101
2.0%
Training costs
1,704,344
1,559,320
109
0.4%
Expenses for short-term leases, low-value leases and other leases
9,396,303
8,276,770
114
2.0%
Costs of transport and communications services
5,540,728
6,459,293
86
1.2%
Reimbursement of labour-related costs
5,596,351
5,596,541
100
1.2%
Costs of services provided by natural persons other than sole
proprietors
2,186,331
2,070,808
106
0.5%
Other costs of services
32,712,167
28,853,847
113
7.1%
Total operating expenses (1)
463,853,035
434,105,275
107
100.0%
Other attributable insurance service expenses (2)
30,452,813
23,795,694
128
Change in deferred acquisition costs (3)
–27,435,542
–13,616,542
201
Total (1+2+3)
466,870,306
444,284,427
105
Elimination of intercompany transactions
–16,023,214
–15,269,700
105
Total consolidated (1+2+3+4)
450,847,092
429,014,727
105
Costs and other attributable insurance service expenses of discontinued
operations (5)
–1,177,761
–15,470,939
8
Total costs and insurance service expenses of continuing operations (1 +
2 + 3 + 4 + 5)
449,669,331
413,543,788
109
Acquisition costs
of EUR 107.8 million were 16% higher. The significant increase in this segment
of operating expenses was driven by the higher volume of transactions concluded under the
principle of free movement of services (FOS) in the EU and via the Greece branch (under the FOE
principle), as well as by the increased volume of written premium from insurance policies taken
out via external sales channels.
At 44.5%,
labour costs
accounted for the largest portion of total expenses. They amounted to EUR
206.5 million, up by 4% year-on-year. The increase in labour costs was driven by salary increases,
a higher number of employees at some subsidiaries, and higher salary costs for agents due to
premium growth at the parent company. Total growth in employees' salaries was 5%, while
88
other labour costs remained roughly at the same level as the previous year (index 100). The main
contributing factor was lower employee benefits at the parent company.
Costs of services
amounting to EUR 122.2 million grew by 4%. Among them, the bulk was
accounted for by other costs of services (EUR 32.7 million), costs of advertising, representation
and sponsorships (EUR 25.7 million), and maintenance costs (EUR 16.9 million). The main
contributors to the growth of this group of costs were:
▪
other costs of services
(index 113), primarily driven by higher fees at Triglav Skladi due to
higher net inflows;
▪
expenses for short-term leases, low-value leases and other leases
(index 114), where growth
was mainly achieved by the costs of rentals and leases in the IT area (particularly due to
digitalisation);
▪
costs of advertising, representation and sponsorships
(index 109), in particular higher costs of
advertising and sponsorships.
A significant reduction in costs was achieved in costs of materials and energy (index 85), costs of
transport and communications services (index 86), and costs of payment transactions and
banking services (index 93).
Non-consolidated operating expenses from insurance operations
amounted to EUR 405.6
million, up by 6%, predominantly due to an increase in acquisition costs and labour costs.
Attributable costs of EUR 349.5 million accounted for 86.2% of expenses from insurance
operations, while non-attributable costs accounted for the remaining 13.8%. Non-consolidated
expenses from non-insurance operations
increased by 16% and totalled EUR 58.3 million, mainly
as a result of higher labour costs (predominantly Triglav zdravje asistenca due to redeployment
of some employees from Triglav, zdravstvena zavarovalnica) and higher other costs of services
(mainly fees at Triglav Skladi due to an increase in net asset value of assets under management).
The increase in
other attributable insurance service expenses
(index 128) was driven by higher
other insurance service expenses at the parent company (contributions and benefits in Poland
and Greece, higher claim handling expenses and costs of assistance services), expenses for fire
fee and the parent company's healthcare contributions.
89
Operating expenses of the Triglav Group
2024
2023
Operating
expenses
Other
attributable
insurance
service
expenses
Changes in
deferred
acquisition
costs
Elimination of
intercompany
transactions
Total
Total
continuing
operations
Operating
expenses
Other
attributable
insurance
service
expenses
Changes in
deferred
acquisition
costs
Elimination of
intercompany
transactions
Total
Total
continuing
operations
Attributable costs
349,515,846
30,452,813
–27,435,542
–2,873,853
349,659,264
348,718,362
328,462,819
23,592,298
–13,616,542
–2,592,319
335,846,256
322,419,212
Attributable acquisition costs
235,989,740
214,163
–27,435,542
–1,022,550
207,745,811
207,707,707
214,668,318
213,309
–13,616,542
–1,080,481
200,184,604
199,299,814
Attributable claim handling expenses
29,527,952
7,007,582
0
36,535,534
36,527,721
29,992,668
3,844,303
0
33,836,971
33,735,738
Attributable administrative costs
83,998,154
23,231,068
0
–1,851,303
105,377,919
104,482,935
83,801,833
19,534,686
0
–1,511,838
101,824,681
89,383,659
Non-attributable costs
56,064,132
0
0
–10,700,778
45,363,354
45,126,494
55,217,194
203,396
0
–10,469,734
44,950,856
42,906,961
Insurance operations (1)
405,579,978
30,452,813
–27,435,542
–13,574,631
395,022,618
393,844,857
383,680,013
23,795,694
–13,616,542
–13,062,053
380,797,112
365,326,173
Non-insurance operations (2)
58,273,056
–2,448,583
55,824,474
55,824,473
50,425,262
–2,207,647
48,217,615
48,217,615
Total (1 + 2)
463,853,034
30,452,813
–27,435,542
–16,023,214
450,847,091
449,669,330
434,105,275
23,795,694
–13,616,542
–15,269,700
429,014,727
413,543,788
Index
Attributable costs
106
129
201
111
104
108
Attributable acquisition costs
110
100
201
95
104
104
Attributable claim handling expenses
98
182
0
0
108
108
Attributable administrative costs
100
119
0
122
103
117
Non-attributable costs
102
0
0
102
101
105
Insurance operations (1)
106
128
201
104
104
108
Non-insurance operations (2)
116
0
0
111
116
116
Total (1 + 2)
107
128
201
105
105
109
90
Investments
The Triglav Group manages its investment portfolio conservatively to ensure adequate
investment yield, safety and liquidity, aiming to achieve a high credit rating for the total
portfolio. In accordance with its sustainable development policy, environmental, social and
governance (ESG) aspects are being enhanced in investment processes.
Through active investing, the Group
maintained an investment portfolio structure comparable
to that at the end of 2023
, with its value increasing to EUR 3,906.1 million (index 115). The bulk
of the total investment portfolio, i.e. 53.6%, was accounted for by bonds invested in developed
markets, most of which have a high credit rating. Their value, as well as the value of the equity
portfolio, was mainly affected by the favourable situation on the financial markets. The structure
of financial investments is discussed in greater detail in Section
3.4 of the Accounting Report
.
Investments of the Triglav Group as at 31 December 2024 and 31 December 2023
Investments
Index
Share
31 Dec 2024
31 Dec 2023
2024/2023
31 Dec 2024
31 Dec 2023
Investment property
70,411,373
67,953,773
104
1.8%
2.0%
Investments in associates and joint ventures
55,621,373
37,708,062
148
1.4%
1.1%
Shares and other variable-income securities
200,682,891
168,680,198
119
5.1%
5.0%
Debt and other fixed-income securities
2,092,633,169
1,860,044,900
113
53.6%
54.7%
Loans given
6,622,689
6,557,903
101
0.2%
0.2%
Bank deposits
60,833,549
65,794,876
92
1.6%
1.9%
Other financial instruments
909,337
872,414
104
0.0%
0.0%
Total (1)
2,487,714,381
2,207,612,126
113
63.7%
65.0%
Unit-linked life insurance assets (2)
678,910,235
540,890,478
126
17.4%
15.9%
Financial investments from financial contracts (3)
739,510,939
650,042,171
114
18.9%
19.1%
Total (1 + 2 + 3)
3,906,135,555
3,398,544,775
115
100.0%
100.0%
The majority of
unit-linked insurance assets
is accounted for by assets invested in mutual funds
of the policyholders' choice, mainly in funds managed by Triglav Skladi. As at 31 December 2024,
these assets amounted to EUR 678.9 million (index 126).
As at 31 December 2024,
the Group's financial investments from financial contracts
amounted
to EUR 739.5 million, up by 14% year-on-year. They include individual and group supplemental
voluntary pension insurance contracts of the parent company and Triglav, pokojninska družba.
Financial contract assets and the types of financial investments from financial contracts are
discussed in greater detail in Section
3.5 of the Accounting Report.
Sustainable fixed-income investments
increased by 29% to EUR 339.4 million, raising their share
of the total bond portfolio to 12.9% (31 December 2023: 11.1%). The table is included in Section
10.2.1.3 Services and products promoting social and environmental benefits
.
As at the reporting date,
the Company's
investments stood at EUR 2,842.6 million, 14% higher
than the previous year.
91
Investments of Zavarovalnica Triglav as at 31 December 2024 and 31 December 2023
Investments
Index
Share
31 Dec 2024
31 Dec 2023*
2024/2023
31 Dec 2024
31 Dec 2023
Investment property
44,971,145
43,427,181
104
1.6%
1.7%
Investments in subsidiaries
196,624,457
195,624,458
101
6.9%
7.9%
Investments in associates and joint ventures
55,059,388
37,218,841
148
1.9%
1.5%
Shares and other variable-income securities
152,938,524
118,763,970
129
5.4%
4.8%
Debt and other variable-income securities
1,450,298,136
1,312,299,502
111
51.0%
52.8%
Loans given
5,306,572
4,547,639
117
0.2%
0.2%
Bank deposits
7,212,864
7,212,364
100
0.3%
0.3%
Other financial instruments
19,810
0
0
0.0%
0.0%
Total (1)
1,912,430,896
1,719,093,954
111
67.3%
69.1%
Unit-linked life insurance contract investments (2)
645,594,699
512,824,007
126
22.7%
20.6%
Financial investments from financial contracts (3)
284,582,910
255,841,272
111
10.0%
10.3%
Total (1 + 2 + 3)
2,842,608,505
2,487,759,233
114
100.0%
100.0%
* The figures for 2023 have been adjusted to reflect the merger of Triglav, Zdravstvena zavarovalnica.
Backed by a favourable trend in the financial markets, the Group's
investment result
amounted
to EUR 159.8 million in 2024 (2023: EUR 83.8 million). The result excluding unit-linked life
insurance assets amounted to EUR 61.8 million (index: 180). Taking into account the financial
result from insurance contracts of EUR –118.5 million, the change in provisions for not achieving
the guaranteed yield in the amount of EUR 908 thousand (2023: EUR 8.1 million), and gains and
impairments of investments in associates of EUR 6.9 million, the impact of the investment result
on the Group's earnings was positive in the amount of
EUR 49.0 million
(2023: EUR 22.2 million).
The return on unit-linked life insurance assets is part of the total investment result, but at the
same time it affects the financial result from insurance contracts in the opposite amount. It
stood at EUR 98.0 million (2023: EUR 49.6 million). Gains and impairments of investments in
associates rose to EUR 6.9 million (2023: EUR –39 thousand) due to the sale of a participating
interest in an associate.
The total return on the Group's financial investments
was thus 100%
higher at EUR 68.6 million.
Return on financial investments of the Triglav Group
Return on financial investments
Return excluding unit-linked life
insurance assets
2024
2023
Index
2024
2023
Index
Interest income calculated using the effective interest
method
47,286,696
35,098,297
135
47,286,696
35,098,297
135
Dividend income
2,599,868
2,705,064
96
2,599,868
2,705,064
96
Net gains/losses on financial investments at fair value
through profit or loss
106,774,705
55,709,619
192
8,839,813
6,126,387
144
Net gains/losses on financial investments at amortised
cost
–335
464
–335
464
Net gains/losses on financial investments at fair value
through other comprehensive income
–3,314,398
–9,304,016
36
–3,314,398
–9,304,016
36
Net impairment/reversal of impairment
3,334,270
2,291,758
145
3,334,270
2,291,758
145
Other investment income/expenses
3,065,770
–2,669,998
61,738,356
–2,646,409
Total return on financial investments (1)
159,746,576
83,831,188
191
6,878,092
34,271,545
180
Gains/losses and impairments of investments in associates
(2)
6,878,092
–38,776
68,616,448
–38,776
Total (1 + 2)
166,624,668
83,792,412
199
61,738,356
34,232,769
200
Rate of return on investment
5.8%
3.2%
2.6 p.p.
3.0%
1.6%
1.4 p.p.
Net gains on financial investments at fair value through profit or loss recorded significant profits,
driven by exceptionally high growth in equity investments. High growth was achieved in both
the management of unit-linked life insurance assets (index 198) and in the management of own
financial investments at fair value through profit or loss (index 144). Interest income rose by
92
35%, primarily due to higher interest rates. The net reversal of impairment of financial
investments amounted to EUR 3.3 million, primarily due to the disposal of previously impaired
debt investments. Dividend income amounted to EUR 2.6 million, down by 4%.
The rate of return on investments of the Group
(excluding unit-linked insurance assets) was
3.0%, up by 1.4. percentage points year-on-year. Excluding exchange rate differences, the rate of
return at Group level was 3.0% (2023: 1.7%). The significant positive impact on returns was
attributed to interest income, which amounted to EUR 47.3 million (2023: EUR 35.1 million) and
the high growth of equity markets, contributing EUR 8.8 million euro (2023: EUR 6.1 million). In
the return on investments, EUR –3.3 million relates to the loss on the sale of bonds and EUR 3.0
million to the reversal of a prior impairment for the same bonds. Therefore, the net result is not
affected by the sale at a loss, as the bonds were previously impaired accordingly.
Return on financial investments of Zavarovalnica Triglav
Return on financial investments
Return excluding unit-linked life
insurance assets
2024
2023*
Index
2024
2023*
Index
Interest income calculated using the effective interest
method
29,070,766
22,302,286
130
29,070,767
22,302,286
130
Dividend income
2,019,695
2,441,534
83
2,019,696
2,441,534
83
Net gains/losses on financial investments at fair value
through profit or loss
101,301,907
49,870,224
203
6,125,799
3,645,078
168
Net gains/losses on financial investments at fair value
through other comprehensive income
–2,543,756
–9,082,410
28
–2,543,756
–9,082,410
28
Net impairment/reversal of impairment
2,754,998
1,490,903
185
2,754,998
1,490,903
185
Other investment income/expenses
2,257,704
73,109
3,088
2,258,064
73,289
3,081
Total return on financial investments (1)
134,861,316
67,095,646
201
39,685,568
20,870,680
190
Gains/losses and impairments of investments in associates
(2)
9,032,880
16,304,050
55
9,032,880
16,304,050
55
Total (1 + 2)
143,894,196
83,399,696
173
48,718,448
37,174,730
131
Rate of return on investments
6.1%
3.8%
2.3 p.p.
2.8%
2.2%
0.6 p.p.
* The figures for 2023 have been adjusted to reflect the merger of Triglav, Zdravstvena zavarovalnica.
Equity
The Triglav Group's total equity
as at 31 December 2024 amounted to EUR 989.0 million, up by
11% relative to 31 December 2023. The Group's total equity represented 21.8% of total balance
sheet liabilities, an increase of 0.1 percentage points. The increase was driven by higher net
earnings for the period in the amount of EUR 131.4 million and other comprehensive income in
the amount of EUR 6.3 million, while dividend payments reduced it by EUR 39.7 million. The
parent company's controlling interests increased by 11% to EUR 984.9 million and non-
controlling interests (due to the positive net earnings attributable to non-controlling interests
for the period) rose by 13% to EUR 4.2 million. The share capital of EUR 73.7 million remained
unchanged and was divided into 22,735,148 ordinary shares.
Zavarovalnica Triglav's total equity
increased by 9% and amounted to EUR 741.6 million.
Net earnings for the year
disclosed in the Group's balance sheet amounted to EUR 75.0 million
and, due to the allocation of part of net earnings to other reserves from profit, were EUR 55.8
million lower than net earnings disclosed in the statement of profit or loss.
The Group's comprehensive income after tax
amounted to EUR 137.7 million (2023: EUR 50.9
million) and the parent company's to EUR 98.9 million (2023: EUR 47.5 million).
93
8.1
Non-Life segment
The Non-Life segment delivered strong performance, with a favourable combined ratio of 94%
in the insurance segment and an investment result that tripled compared to the previous year.
Performance results of the Non-Life segment of the Triglav Group
2024
2023
Index
Total business volume
1,304,374,331
1,177,658,738
111
Gross written insurance premium
1,274,332,716
1,152,716,491
111
Other income
30,041,614
24,942,247
120
Total revenue
1,186,349,643
1,067,589,161
111
Insurance operating result
69,084,585
3,641,356
1,897
Insurance revenue
1,156,299,596
1,042,646,914
111
Claims incurred
627,530,982
769,196,929
82
Acquisition and administrative costs including non-attributable costs
304,338,440
290,661,755
105
Net reinsurance service result
–139,958,713
29,702,036
Net other insurance revenue and expenses
–15,386,876
–8,848,910
174
Net investment result
32,865,549
11,039,199
298
Result from non-insurance operations
–1,118,837
–132,442
Earnings before tax
100,831,298
14,548,113
693
Combined ratio
94.0%
99.7%
–5.6 p.p.
CSM of new contracts/Total CSM
53.3%
38.0%
15.4 p.p.
Insurance service expenses to insurance revenue
26.3%
27.9%
–1.6 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
14,441,155
16,697,354
86
Risk adjustment (RA)
33,191,759
30,151,066
110
Net insurance contract liabilities
1,035,308,308
975,608,503
106
Net reinsurance contract assets
287,403,984
320,755,400
90
The total business volume
of the Non-Life segment amounted to EUR 1,304.4 million, up by 11%.
Gross written premium
in the Non-Life segment grew at the same rate. In the Slovenian market,
premium grew by 7%, in the international market by 21% and in other markets of the Adria
region by 6%. Premium growth was achieved in most markets in the Adria region, with the
exception of Bosnia and Herzegovina (index 93), where the decline in premium resulted from
ownership consolidation and business optimisation, and Croatia (index 99), where the decline in
premium was due to portfolio restructuring (index 99). High growth was recorded in non-life
insurance premium in Serbia through the acquisition of new policyholders and the expansion of
the scope of insurance coverage with existing policyholders. Premium growth was recorded in
most non-life insurance groups, with the exception of other non-life insurance (a decrease in
marine insurance premium due to a different accounting method at the parent company and
the termination of cooperation with an agency in Croatia). The highest growth was seen in real
property insurance (fire and natural disaster insurance and other damage to property insurance)
and motor vehicle insurance.
Total revenue
of the Non-Life segment amounted to EUR 1,186.3
million, up by 11%. The increase was mostly influenced by the growth in insurance revenue due
to higher insurance coverage, the impact of past premium rate rises on premium increases and
the growth of insurance sales under the principle of free movement of services (FOS). In FOS
transactions, the highest premium volume was recorded in motor vehicle insurance for
individuals in Poland (EUR 56.3 million), reflecting a significant growth of 90%.
Non-Life insurance
claims incurred
, which comprise insurance service expenses for claims, the
change in cash flows, the change in experience correction and the effects of allocation to
onerous contracts, decreased by 18% to EUR 627.5 million at Group level and by 26% to EUR
396.4 million at the parent company. Insurance service expenses for claims, amounting to EUR
94
642.6 million, were 20% lower. The decrease in claims incurred was primarily driven by the very
high CAT claims last year, alongside relatively favourable claims development.
The Group's
Non-Life segment's insurance operating result
amounted to EUR 69.1 million (2023:
EUR 3.6 million). Influenced by an 11% increase in insurance revenue and a 28% decrease in
claims incurred. Acquisition costs, administrative costs and non-attributable costs were 5%
higher at EUR 304.3 million. The net reinsurance service result amounted to EUR –140.0 million
(2023: EUR 29.7 million), predominantly resulting from lower reinsurance income (index 44) as
a result of lower new claims ceded to reinsurance in 2024. Due to the increased business volume
and slightly poorer reinsurance conditions, reinsurance expenses increased (index 107).
The net
investment result
grew to EUR 32.9 million (index 298), mainly due to an increase in investment
result (index 212) and gains on disposal of a participating interest in an associate (EUR 4.7
million).
The result from non-insurance operations
was negative at EUR –1.1 million, primarily
due to higher interest payments on bonds issued and the impairment of past-due receivables.
Earnings before tax of the Non-Life segment
reached EUR 100.8 million, compared to EUR 14.5
million in the previous year.
The combined ratio
for the Non-Life segment
stood at favourable 94.0%, down by 5.6 percentage
points year-on-year. Its improvement was driven by higher insurance revenue and lower claims
incurred. The claims ratio and the expense ratio improved by 4.6 percentage points and 1.1
percentage points respectively.
Performance results of the Non-Life segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
880,069,706
784,928,919
112
Gross written insurance premium
866,712,583
773,815,847
112
Other income
13,357,123
11,113,072
120
Total revenue
824,375,017
720,307,430
114
Insurance operating result
54,508,347
1,493,091
3,651
Insurance revenue
811,017,894
709,194,358
114
Claims incurred
396,432,489
537,393,087
74
Acquisition and administrative costs including non-attributable costs
215,478,525
203,541,839
106
Net reinsurance service result
–130,046,609
39,447,646
Net other insurance revenue and expenses
–14,551,924
–6,213,987
234
Net investment result
24,947,939
19,420,462
128
Result from non-insurance operations
–1,389,929
590,787
Earnings before tax
78,066,357
21,504,340
363
Combined ratio
93.3%
99.8%
–6.5 p.p.
CSM of new contracts/Total CSM
57.4%
39.4%
18.0 p.p.
Insurance service expenses to insurance revenue
26.6%
28.7%
–2.1 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
13,420,019
15,732,207
85
Risk adjustment (RA)
15,135,083
11,724,267
129
Net insurance contract liabilities
688,541,300
687,817,381
100
Net reinsurance contract assets
249,027,855
305,976,870
81
95
8.2
Life segment
The Life segment also delivered strong performance. Favourable trends were observed in the
insurance segment and were particularly pronounced in the investment segment, which also
benefited from favourable financial market conditions.
Performance results of the Life segment of the Triglav Group
2024
2023
Index
Total business volume
244,566,606
229,456,362
107
Gross written insurance premium
242,588,054
228,358,676
106
Other income
1,978,552
1,097,686
180
Total revenue
100,265,726
86,226,995
116
Insurance operating result
19,804,608
16,684,632
119
Insurance revenue
98,399,942
85,367,869
115
Claims incurred
27,161,982
25,603,176
106
Acquisition and administrative costs including non-attributable costs
48,590,117
42,030,166
116
Net reinsurance service result
272,006
1,619,193
17
Net other insurance revenue and expenses
–3,115,241
–2,669,088
117
Net investment result
10,523,083
1,942,121
542
Result from non-insurance operations
9,987
317,352
3
Earnings before tax
30,337,678
18,944,105
160
CSM of new contracts/Total CSM
15.1%
16.2%
–1.1 p.p.
New business margin
13.4%
14.6%
–1.2 p.p.
Contractual service margin sustainability
1.1
1.2
92
Insurance service expenses to insurance revenue
49.4%
49.2%
0.1 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
272,164,764
221,656,867
123
Risk adjustment (RA)
32,489,424
33,264,554
98
Net insurance contract liabilities
1,404,899,162
1,305,706,187
108
Net reinsurance contract assets
346,996
384,510
90
The Life segment includes life insurance business of insurance companies and non-insurance companies supporting this business
(Triglav Svetovanje; Triglav Savjetovanje, Sarajevo; Triglav Savetovanje, Belgrade, in liquidation, and Triglav Savjetovanje, Zagreb, in
liquidation). This segment's result also takes into account the investment portion of related own insurance portfolios.
The total business volume
amounted to EUR 244.6 million, a 7% increase year-on-year.
Gross
written premium
was up by 6%, with premium growth seen in all insurance markets. An 11%
growth was seen in unit-linked life insurance, primarily as a result of higher premium payments
at the parent company and the North Macedonian life insurer.
Total revenue
rose by 16%, driven
by a 15% rise in insurance revenue and strong growth in other income (index 217).
The insurance operating result
increased by 19% to EUR 19.8 million. It was mainly driven by
higher
insurance revenue
due to the higher release of contractual service margin, risk premium
and expected claims.
Claims incurred
, which in addition to insurance service expenses for claims
comprise the change in cash flows, the change in experience correction, the effects of allocation
to onerous contracts and other insurance expenses, increased by 6% at Group level and by 5% at
the parent company; they amounted to EUR 27.2 million at Group level and EUR 17.6 million at
the parent company. Their increase was mainly influenced by higher insurance service expenses
for claims and the effects of the loss of onerous contracts.
The investment result before tax
of the Life segment increased to EUR 10.5 million (index 542).
The investment result rose to EUR 121.1 million (index 182), mainly due to higher interest
income and strong growth in equity investments, while the negative financial result from
insurance contracts of EUR –110. 6 million (index 171) was primarily driven by higher financial
96
expenses due to an increase in unit-linked insurance liabilities.
The result from non-insurance
operations
amounted to EUR 10 thousand (2023: EUR 317 thousand).
Earnings before tax of the
Life segment at Group level
amounted to EUR 30.3 million (index 160).
Earnings before tax of the Company's Life segment
rose to EUR 26.2 million (2023: EUR 19.3
million).
The insurance operating result
grew to EUR 18.4 million (index 124), primarily due to
the higher release of both the contractual service margin and risk adjustment.
The net
investment result
increased to EUR 7.6 million year-on-year (2023: EUR 4.1 million).
The Group's CSM of new life insurance contracts
amounted to EUR 41.1 million, of which 42%
was accounted for by unit-linked life insurance contracts and the rest by other life insurance
contracts. The CSM of new contracts in total contractual service margin was 15.1%, down by 1.1
percentage points year-on-year. This decline was driven by changes in expected cash flows
affecting the total contractual service margin and the reinsurance calculation for life insurance
at the parent company, in accordance with IFRS 17. The release of the contractual service margin
to profit or loss amounted to EUR 36.6 million compared to EUR 29.4 million in 2023.
In 2024,
the new business margin
of the Group's Life segment stood at 13.4%, down 1.2
percentage points from the previous year, predominantly due to a lower CSM of new contracts
at the North Macedonian life insurer.
The Group's contractual service margin sustainability
shows the ratio between the CSM of new
contracts and the release of the contractual service margin to profit or loss as a result of cash
flow maturity. It reached 1.1 in 2024 and 1.2 in 2023.
The contractual service margin
of the Group's life insurance contracts increased by EUR 50.5
million and totalled EUR 272.2 million as at 31 December 2024. Its increase resulted from the
positive difference between the CSM of new contracts and the release of the contractual service
margin to profit or loss in the amount of EUR 4.5 million, the increase in other changes of EUR
2.5 million and the positive changes in expected cash flows of EUR 43.5 million due to the change
in assumptions. The majority of the increase is attributable to the parent company (see note
below).
Movement in the Triglav Group's CSM in the Life segment in 2024 (EUR million)
221.7
272.2
41.1
43.5
-36.6
2.5
31 Dec 2023
CSM of new
contracts
Change in
expetcted cash
flows
Release of the CSM
to profit or loss
Other
31 Dec 2024
97
Performance results of the Life segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
195,443,569
192,632,794
101
Gross written insurance premium
194,421,298
186,343,262
104
Other income
1,022,271
6,289,532
16
Total revenue
77,469,581
67,026,807
116
Insurance operating result
18,431,324
14,833,611
124
Insurance revenue
76,553,208
66,444,361
115
Claims incurred
17,639,863
16,759,427
105
Acquisition and administrative costs including non-attributable costs
37,076,869
32,725,253
113
Net reinsurance service result
–105,762
0
Net other insurance revenue and expenses
–3,299,390
–2,126,070
155
Net investment result
7,642,237
4,059,745
188
Result from non-insurance operations
172,324
384,007
45
Earnings before tax
26,245,885
19,277,364
136
CSM of new contracts/Total CSM
13.0%
12.6%
0.4 p.p.
New business margin
14.6%
13.9%
0.7 p.p.
Contractual service margin sustainability
1.0
1.0
101
Insurance service expenses to insurance revenue
48.4%
49.3%
–0.8 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
257,806,279
209,642,299
123
Risk adjustment (RA)
29,240,452
31,137,721
94
Net insurance contract liabilities
1,272,022,364
1,186,898,681
107
Net reinsurance contract assets
-8,336
0
The Company's CSM of new contracts
amounted to EUR 33.5 million (index 127). The CSM of
new contracts in total contractual service margin was 13.0%, up by 0.4 percentage points year-
on-year. The release of the contractual service margin to profit or loss was also higher,
amounting to EUR 32.6 million (index 125).
As at the reporting date,
the Company's contractual service margin
stood at EUR 257.8 million,
23% higher than the previous year. This increase stemmed from a positive change in expected
cash flows of EUR 45.1 million, driven by revised assumptions about future business based on
business decisions taken and a more favourable development of insurance portfolios than
previously anticipated. The increase due to other changes amounted to EUR 2.2 million. The
difference between the CSM of new contracts and the release of the CSM to profit or loss
positively impacted the contractual service margin by EUR 0.9 million.
The Company's new business margin
grew by 0.7 percentage points to 14.6%. This resulted from
the higher profitability of new underwritten contracts, taking into account future increases in
sums insured and written premium at the time of indexation.
The Company's contractual service
margin sustainability
reached 1.0, the same as the previous year.
98
Movement in Zavarovalnica Triglav's CSM in the Life segment in 2024 (EUR million)
8.3
Health segment
The strong performance of the Health segment in 2024 was influenced by one-off events. As part
of the business model revision in Slovenia and efforts to drive premium growth, enhance claims
management and optimise costs, Triglav, Zdravstvena zavarovalnica was merged into the parent
company. The Group's key strategic guidelines and ambitions for this segment remain
unchanged, as it continues to be a key development segment.
Performance results of the Health segment of the Triglav Group
2024
2023
Index
Total business volume
56,223,031
223,036,915
25
Gross written insurance premium
44,336,316
222,799,228
20
Other income
11,886,715
237,687
5,001
Total revenue
55,139,550
223,409,569
25
Insurance operating result
8,620,876
–27,377,596
Insurance revenue
43,252,835
223,171,882
19
State compensation pursuant to the Decree on supplemental health
insurance premium
10,996,355
0
Claims incurred
23,996,976
226,446,868
11
Acquisition and administrative costs including non-attributable costs
18,007,025
25,319,883
71
Net reinsurance service result
–1,244,211
285,341
Net other insurance revenue and expenses
–2,380,102
931,932
Net investment result
1,247,919
–2,945,661
Result from non-insurance operations
472,074
–1,089,949
Earnings before tax
10,340,868
–31,413,206
Combined ratio
84.1%
112.3%
–28.2 p.p.
CSM of new contracts/Total CSM
11.1%
31.3%
–20.3 p.p.
Insurance service expenses to insurance revenue
41.6%
11.3%
30.3 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
212,799
92,661
230
Risk adjustment (RA)
533,650
5,593,595
10
Net insurance contract liabilities
13,449,389
37,239,036
36
Net reinsurance contract assets
–295,163
132,645
209.6
257.8
33.5
45.1
-32.6
2.2
31 Dec 2023
CSM of new
contracts
Change in
expetcted cash
flows
Release of the CSM
to profit or loss
Other
31 Dec 2024
99
The Health segment includes the health insurance products sold by the Group insurance companies and the non-insurance company
complementing this business (Triglav zdravje asistenca). The segment presentation also includes the investment portion of the
Health segment's own insurance portfolios.
In 2023, supplemental health insurance, which was also provided by the Triglav Group, was
terminated in Slovenia. In Slovenia and other markets in the Adria region, complementary health
insurance is being maintained and strengthened. The Group's non-consolidated complementary
health insurance premium grew by 37% to EUR 43.1 million in 2024 (shown by insurance
company in the table below).
Non-consolidated complementary health insurance premium of the Triglav Group by market
2024
2023
Index
Slovenia
22,642,006
16,899,914
134
Serbia
11,373,915
7,863,869
145
North Macedonia
3,587,856
2,546,503
141
Croatia
3,129,285
1,952,265
160
Montenegro
1,533,082
1,335,865
115
Bosnia and Herzegovina
839,534
890,171
94
Total
43,105,678
31,488,587
137
The total business volume
of the Health segment decreased to EUR 56.2 million (2023: EUR 223.0
million) due to the termination of supplemental health insurance, as already mentioned.
Gross
written premium
also recorded a sharp decline, with supplemental health insurance accounting
for 85% of the health insurer's written premium. The increase in other income was impacted by
state compensation pursuant to the Decree on setting the maximum price of the supplemental
health insurance premium.
Earnings before tax
of the Health segment totalled EUR 10.3 million (EUR 16.1 million relates to
discontinued operations), while last year they were negative at EUR –31.4 million (EUR –27.8
million relates to discontinued operations).
The insurance operating result
amounted to EUR 8.6
million (2023: EUR –27.4 million), influenced by the release of the provisions for supplemental
health insurance (EUR 6.4 million) and by the state compensation under the Decree on setting
the maximum price of the supplemental health insurance premium (EUR 11.0 million). Insurance
revenue and claims incurred were significantly lower than the previous year due to the
termination of supplemental health insurance.
The net investment result
improved compared
to the previous year and amounted to EUR 1.2 million (2023: EUR –2.9 million), while
the result
from non-insurance operations
reached EUR 472 thousand. As a result of these effects,
the
combined ratio for the Health segment
declined by 28.2 percentage points to 84.1% year-on-
year. Excluding the impact of discontinued operations, the combined ratio would be 117.8% in
2024 and 108.7% the year before. The combined ratio is expected to normalise in the future.
100
Performance results of the Health segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
34,490,283
209,131,710
16
Gross written insurance premium
22,885,016
207,957,286
11
Other income
11,605,267
1,174,424
988
Total revenue
35,137,987
211,131,568
17
Insurance operating result
11,434,413
–26,902,903
Insurance revenue
23,532,720
209,957,144
11
State compensation pursuant to the Decree on supplemental health
insurance premium
10,996,355
0
Claims incurred
6,717,258
215,862,604
3
Acquisition and administrative costs including non-attributable costs
13,492,574
21,070,944
64
Net reinsurance service result
–504,728
81,814
Net other insurance revenue and expenses
–2,380,102
–8,312
Net investment result
1,175,208
–2,957,549
Result from non-insurance operations
533,887
282,151
189
Earnings before tax
13,143,508
–29,578,301
Combined ratio
66.9%
112.8%
–45.9 p.p.
CSM of new contracts/Total CSM
11.1%
31.3%
–20.3 p.p.
Insurance service expenses to insurance revenue
57.3%
10.0%
47.3 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
212,799
92,661
230
Risk adjustment (RA)
432,808
5,454,294
8
Net insurance contract liabilities
7,617,888
34,274,848
22
Net reinsurance contract assets
12,090
959,820
1
8.4
Asset Management
Amid highly favourable financial market trends, the Asset Management segment achieved
strong performance in 2024.
The Group's total assets under management
as at 31 December 2024 amounted to EUR 5.9
billion, up by 21% year-on-year. The Group manages own funds, unit-linked insurance assets and
financial contract assets in the total amount of EUR 3.9 billion (index 115) in its companies. In
addition, the Group manages assets in mutual funds and discretionary mandate assets, as well
as assets in pension funds and alternative investments, in the total amount of EUR 2.0 billion
(index 137).
101
Asset management of the Triglav Group as at 31 December 2024 and 31 December 2023
2
Assets under management
Index
31 Dec 2024
31 Dec 2023
2024/2023
Own insurance portfolio (1)
2,487,714,381
2,207,612,126
113
Unit-linked life insurance assets (2)
678,910,235
540,890,478
126
Financial instruments from financial contracts (3)
739,510,939
650,042,171
114
Total (1+2+3)
3,906,135,555
3,398,544,775
115
Assets under management – Triglav Skladi (4)*
1,628,351,605
1,194,176,397
136
Assets under management – Triglav penzisko društvo, Skopje (5)
208,952,512
143,067,579
146
Assets under management – Triglav Fondovi, Sarajevo (6)
9,801,044
6,073,641
161
Total (4+5+6)
1,847,105,161
1,343,317,617
138
Assets under management – Trigal (7)**
117,412,162
91,237,169
129
Assets under management – Evropski dobrovoljni penzijski fond, Banja Luka (8)
23,129,461
18,297,531
126
Total (7+8)
140,541,623
109,534,700
128
Total
5,893,782,338
4,851,397,092
121
* Zavarovalnica Triglav's unit-linked life insurance contract assets managed by Triglav Skladi are excluded from Triglav Skladi's assets under
management.
** Own funds are eliminated from Trigal's assets under management.
Performance results of the Asset Management segment of the Triglav Group
2024
2023
Index
Total business volume
112,462,118
107,798,240
104
Total revenue
51,454,450
47,991,031
107
Operating result
13,177,336
6,785,169
194
Income from asset management
49,364,063
39,685,487
124
Net other income and expenses
230,427
–1,631,210
Operating expenses
36,417,154
31,269,108
116
Net investment result
4,355,021
12,196,256
36
Earnings before tax
17,532,357
18,981,425
92
Expenses to asset management income ratio
73.8%
78.8%
–5.0 pp
The asset management activity at the Triglav Group comprises the management of the parent company's own insurance portfolios
(assets backing liabilities and guarantee funds), clients' pension savings through the insurance services of the Group's insurance and
pension companies, the management of clients' assets in mutual funds and discretionary mandate assets by asset management
companies and alternative investment management. The assets shown below therefore refer to the Group's total assets under
management. As the investment results of own insurance portfolios are taken into account in the insurance segments, the asset
management segment includes clients' pension saving through the insurance services of the Group's insurance and pension
companies, asset management and the management of clients' assets in mutual funds and discretionary mandate assets in the
aforementioned companies.
The Group's
total business volume
of the Asset Management segment grew by 4% to EUR 112.5
million. The supplemental pension insurance premium (EUR 61.0 million) increased by 2%,
mainly due to a higher average monthly paid-in premium at the pension company. Income from
asset management (EUR 49.4 million) rose by 24%, whereas other income (EUR 2.1 million) was
lower due to the lower impact of the change in provisions for not achieving the guaranteed yield.
Income from asset management
comprises income from fees, which increased in all companies,
with the highest relative growth recorded in the Macedonian company Triglav penzisko društvo
(index 140) and Triglav Skladi (27%).
The operating result
amounted to EUR 13.2 million (index 194) due to higher income from asset
management and higher net other income.
The net investment result
amounted to EUR 4.4
million, compared to EUR 12.2 million in the previous year. The positive impact of the change in
provisions for not achieving the guaranteed yield was EUR 0.9 million in 2024, compared to EUR
8.1 million in the previous year.
Earnings before tax of the Asset Management segment
reached
2
SASB: FN-AC-000.A.
102
EUR 17.5 million, down by 8% year-on-year. Excluding the impact of the change in provisions for
not achieving the guaranteed yield, earnings before tax growth would have exceeded 50%.
Performance results of the Asset Management segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
24,136,050
28,936,738
83
Total revenue
3,330,423
7,383,565
45
Operating result
128,709
223,720
58
Income from asset management
3,158,050
2,854,726
111
Net other income and expenses
–147,417
194,800
Operating expenses
2,881,923
2,825,806
102
Net investment result
0
4,334,041
0
Earnings before tax
128,710
4,557,761
3
Expenses to asset management income ratio
91.3%
99.0%
–7.7 p.p.
The Company's income from asset management relating to the management of supplemental
pension insurance premium (financial contract assets and liabilities) increased by 11% to EUR 3.2
million, while the decrease in total revenue and total business volume was largely due to the
change in provisions for not achieving the guaranteed yield, which amounted to EUR 4.3 million
in 2023. This also led to lower earnings before tax of EUR 129 thousand in the Asset Management
segment, compared to EUR 4.6 million the previous year.
Management of assets and investment funds
Triglav Skladi
is the Group's core asset management company, with assets under management
of EUR 2.3 billion as at 31 December 2024, up by 33% relative to 31 December 2023 (EUR 1.7
billion). In 2024, the company revised its product range and now offers 12 distinct investment
policies within mutual funds, including a money market fund, a bond fund, a flexible fund, a
mixed fund and equity funds. As at 31 December 2024, the company managed the portfolio of
110,000 investors worth
EUR 1.9 billion in mutual funds
. The value of net assets under
management rose by 29% due to net inflows of EUR 138.2 million, effective management and
favourable trends in the capital markets (EUR 294.8 million).
Discretionary mandate assets
amounted to EUR 336.1 million as at 31 December 2024,
a 61% increase year-on-year
. Net
inflows amounted to EUR 59.8 million, while the favourable effects of capital markets increased
net asset value by EUR 68.0 million.
Triglav Skladi also manages the unit-linked life insurance assets of the Triglav Group. Among
them are the Financial Objectives investment strategy, which enables clients to actively adjust
their portfolios according to the lifecycle principle, and Active Investment packages, tailored to
different client segments adjusted to their risk profile. In addition, Triglav Skladi manages five
portfolios of guarantee funds backing supplemental voluntary pension insurance:
Triglav Drzni,
Triglav Zmerni, Delniški Skupni pokojninski sklad, Mešani Skupni pokojninski sklad
and
Obvezniški
Skupni pokojninski sklad.
The integration of environmental, social and governance (ESG) aspects
into asset management is reported in more detail in Section
10. Sustainability Report
.
Triglav Fondovi, Sarajevo
manages two open-end investment funds (OIF Triglav Obveznički and
OIF Triglav Globalni dionički). Both funds recorded net inflows of EUR 3.0 million in 2024.
103
Movement in net assets under management
Net asset value of assets under
management
Net inflow
Net market
31 Dec 2024
31 Dec 2023
Change
impact
impact
Triglav Skladi
2,260,084,264
1,699,308,044
560,776,220
197,915,973
362,860,247
- mutual funds
1,923,993,403
1,490,992,587
433,000,816
138,162,449
294,838,367
- discretionary mandate assets
336,090,861
208,315,457
127,775,404
59,753,524
68,021,880
Triglav Fondovi, Sarajevo
9,801,044
6,073,641
3,727,403
2,952,939
774,464
Total
2,269,885,308
1,705,381,685
564,503,623
200,868,912
363,634,711
Active ownership
3
An active ownership role in the investment process is essential for promoting improved business
policies and practices among issuers of financial instruments, contributing to their long-term
success. Triglav Skladi exercises this role in line with its Sustainable Investment Policy by
engaging with issuers on business, financial, environmental, social and governance matters and
exercising the rights associated with financial instruments. This includes active participation in
issuers' meetings, voting and proposing agenda items to support responsible and sustainable
investment management.
8.5
Investment in own-use real property and equipment
The Group invested EUR 10.1 million (index 135) in property, plant and equipment and EUR 12.7
million (index 92) in intangible assets (software and property rights). The Company invested EUR
4.4 million (index 88) in property, plant and equipment and EUR 8.7 million (index 86) in
intangible fixed assets. See Section
3.7.1 of the Accounting Report
for more information on
property, plant and equipment and
Section 3.7.4 of the Accounting Report
for more information
on intangible assets.
The value of own-use real property is enhanced through active management and prudent
investment. This involves optimising utilisation, increasing functionality and improving energy
efficiency through energy renovation. Based on minimum standards for flexible arrangement of
workplace and points of sale, the Group aligns with international best practices to modernise
and enhance operational efficiency. As part of implementing the space use optimisation project
under the adopted 2021–2025 plan, the following objectives are pursued:
▪
To provide employees with a modern business environment and the right conditions for new
ways of working (hybrid workplaces), and to provide clients with an outstanding and
comfortable user experience (e.g. remote transacting); and
▪
To achieve lasting effects by rationalising operating expenses and maintenance costs while
maintaining the quality of the space.
In the coming years, office space will be optimised for internal activities, while further
digitalisation and automation of processes will enhance efficiency and improve the user
experience in online underwriting and remote claims reporting. Alongside the planned
optimisation of space usage in larger business units, the number of branch offices is being
adjusted as physical points of contact for clients. The optimisation measures are expected to free
up at least 3,000m
2
of space by the end of 2026, reducing operating expenses and maintenance
costs, thus contributing significantly to reducing the Group's carbon footprint.
3
SASB: FN-AC-410a.3.
104
A
hybrid workspace
pilot project was implemented to create a more modern and flexible
workplace. By the end of 2024, around 300 employees of the parent company had participated,
with the project set to continue in the coming years.
Real property management software was upgraded with investment management and cost
management functionalities, along with enhancements to energy accounting.
The largest portion of software investment was allocated to the development and upgrade of
core underwriting applications, acquisition of licenses for various business and support
applications, the development of mobile applications and digital channels, and the expansion of
the data warehouse.
Investment in personal computing equipment enhances productivity and the user experience
while minimising technical issues and maintenance requirements. Upgrades to server
infrastructure increase capacity for hosting core and support applications, improving availability
and reducing the risk of downtime that could disrupt business operations. Investment in
communications equipment also strengthens network security, providing greater protection
against cyber threats.
105
9.
Risk management
-
The Triglav Group performed well, maintaining good capital strength and liquidity, as
confirmed by the re-affirmed "A" credit ratings. S&P Global upgraded its medium-term
outlook from stable to positive.
-
Capital adequacy benefited from the successful issue of a new subordinated bond.
-
Adaptation to the macroeconomic environment continued, with a prudent assumption of
underwriting risks and maintenance of an optimal level of market risks.
-
Planned asset-liability matching was ensured while risks were mitigated through
appropriate diversification.
-
Development activities focused on upgrading sustainability risk management and
strengthening the information security risk management system.
-
The establishment of the Risk Committee of Zavarovalnica Triglav's Supervisory Board
further reinforced the importance and role of the risk management system at Group level.
The Triglav Group was well-capitalised in 2024. The increase in own funds to cover the solvency
capital requirement was significantly influenced by the issuance of a new subordinated bond
(see Section
6.7 Bonds
for more information). The outlined dividend policy was followed,
achieving a high capital adequacy ratio of 219% at the year-end, despite changes in the
macroeconomic environment and financial markets. The Group's adequate capital strength was
reaffirmed by AM Best, which assigned a long-term credit rating of "A", and S&P Global, which
assigned a financial strength rating of "A". The latter upgraded the Group's medium-term
outlook on its "A" rating from stable to positive in December 2024. See Section
6.6 Credit rating
of the Triglav Group and Zavarovalnica Triglav
for more information.
Although inflation gradually eased throughout the year and central banks cut key interest rates,
economic growth remained low. These conditions mainly affected market and underwriting
risks. In assuming and managing these risks, the focus remained on adapting to the
macroeconomic and financial market situation.
The Group carried out key risk management development activities
at the business line level,
where opportunities for improvement were identified or responses to external circumstances
were required.
▪
In
capital management
, upgrades were made through a bridging analysis, providing a
comprehensive explanation of the differences between the valuation of insurance technical
provisions for solvency and financial statement purposes.
▪
In the context of
market risks
, several upgrades were made to measurement and monitoring
methodologies.
▪
Non-Life underwriting risk
monitoring and analysis were upgraded, and additional
monitoring of certain types of exposures at Group level was also implemented.
▪
In the context of
credit risk
management, the approach to managing risks arising from
inward and outward reinsurance contracts was upgraded. The process of obtaining
reinsurance partner ratings was also upgraded, further improving the quality of the data.
▪
With regard to
liquidity risk
, the existing methodology for calculating risk indicators was
refined.
▪
In
operational risk
management, methodologies and exposure assessments for key business
processes were updated, particularly with respect to outsourcing and information security
risks.
▪
In
non-financial risk
management, the management of reputational risk was upgraded.
Sustainability risk
management was also revised, particularly with regard to transition risk
due to climate change, with updates to measurement methods. For the first time, an
106
analysis was conducted on the exposure of the insurance and investment portfolios to
biodiversity risks.
For all remaining risks, efforts focused on maintaining established systems and processes.
The
risk management
system
at Group level
was systematically upgraded by consistently
monitoring all material risks.
9.1
Risk management system
The risk management system is key to achieving the Group's strategic and business objectives.
It is implemented at Group level as a set of harmonised rules, powers and responsibilities, clearly
delineated by business function and organisational level. The system defines and integrates
processes for the continuous identification, assessment, monitoring and management of
assumed, potential and emerging risks. A clear, transparent and well-documented system
enables the Company to take appropriate and timely action and to maintain the risk profile at
the level defined in the main document – Group Risk Appetite Statement. The system is
maintained up-to-date and comprehensive through continuous upgrades and updates. In
subsidiaries, the system is aligned with the standards and rules of the parent company, taking
into account the principle of proportionality.
9.1.1
Powers and responsibilities
The system of powers and responsibilities in risk management
is based on the "three lines of
defence" model
.
The Management Board and Supervisory Board
have a key role in the risk management system.
They are responsible for its operation and defining organisational goals and strategies for
achieving them. Furthermore, they establish the management structure and processes for
appropriate management of assumed risks.
The first line of defence comprises the business functions, which identify and underwrite risks
in their respective work area in accordance with the Management Board's guidelines. Actual
risks are actively managed within the limits of acceptable or allowed exposure.
107
The decision-making bodies participating in the integrated corporate risk management process
and the three lines of defence
Supervisory Board and Risk committee
Management Board
1.
First line of defence
Risk underwriting
2.
Second line of defence
Risk management
3.
Third line of defence
Independent supervision
Business functions at all
levels
Competent risk
management committees,
the risk management
function, the actuarial
function, the compliance
function and other related
areas
Internal audit
▪
Active operational
management of
concrete business risks
▪
Responsibility for risk
identification and
underwriting
▪
Definition of the risk
management system
▪
Definition and
execution of exposure
identification,
measurement and
monitoring procedures
▪
Definition of the
exposure limit system
▪
Execution of regular
independent
effectiveness and
efficiency reviews of
the internal control
system and the risk
management system
The second and third lines of defence comprise the decision-making bodies and
key functions
of the governance system that are organised as independent organisational units
. The second
line of defence includes the relevant risk management committees and key functions: the risk
management function, the non-life and life insurance actuarial functions, and the compliance
function. The internal audit function, providing independent supervision of the system, is part
of the third line of defence. All key functions cooperate with one another, with other areas
within the Company and with Group companies. They are independent in their work.
The risk management function
is responsible and accountable for the development and
effective operation of the risk management system, in line with the Management Board's
guidance. It monitors the overall risk profile, identifies and assesses emerging risks, coordinates
and calculates capital requirements, and assesses capital adequacy using the regulatory method
and other capital models. It also conducts the own risk and solvency assessment process and
prepares other regulatory reports, such as the Solvency and Financial Condition Report and the
Regular Supervisory Report.
108
The compliance function
monitors the compliance of the Company's operations with the
applicable regulations and commitments within the internal control system. It monitors and
assesses the impacts of the changed legal environment and compliance risks. As part of its
duties, it reviews and advises on the adequacy and effectiveness of procedures and measures to
ensure compliance. It also co-creates the internal controls for ensuring compliance of a
particular process, business line, or the Company as a whole by providing guidelines and making
recommendations and proposals, on which it regularly reports to the Management Board and
the Supervisory Board. In addition, the compliance function plays a major role in ensuring fair
and transparent operations.
The actuarial function
coordinates and implements the calculation of insurance technical
provisions, applying appropriate methods, models and assumptions, while ensuring the use of
comprehensive, high-quality data. It also calculates and coordinates capital requirements for
underwriting risks. A key task of the function is to verify the adequacy of the overall
underwriting and reinsurance policies and to provide an opinion on whether the amount of the
premium of individual products is sufficient to cover all the liabilities arising from insurance
contracts. The function also participates in the own risk and solvency assessment and reports
its significant findings to the Management Board and the Supervisory Board. Within the Group,
the actuarial function operates separately for non-life and life insurance.
The internal audit function
provides regular and comprehensive oversight of the Company's
operations. It ensures a systematic and planned review of operations, assessing their adequacy
and effectiveness. Its tasks include overseeing risk management and control procedures. The
function also makes recommendations for improvements and ensures the quality and
continuous development of internal audit. It cooperates with external auditors and other
supervisory bodies, as well as monitors the implementation of their recommendations. It also
participates in internal audits in other Group companies.
All key functions are in charge of not only transferring know-how and best practices to Group
subsidiaries but also of ensuring their harmonised operation.
The second line of defence of the risk management system includes
committees
that support
the Management Board by monitoring risks on a regular basis, reporting to the Management
Board on actions taken to address them, and informing the Management Board of their work.
109
The risk management system's committees and their responsibilities
Risk Management Committee (RMC)
Responsible for:
▪
non-financial risks that do not fall within the powers of other committees
▪
capital risks and
▪
overall all other types of risks, with an emphasis on the Group's most
material risks.
Approves:
▪
methodologies and rules defining risk assessment methods
▪
limit systems related to all risk types
▪
maximum net retention tables
▪
recommendations to subsidiaries regarding the maximum permitted exposure to individual risks..
Assets and Liabilities
Committee
(ALCO)
Non-life
Underwriting
Committee
(UWC)
Operational Risk
Committee
(ORC)
Compliance and
Sustainable
Development
Committee
(CSDC)
Life Insurance
Product Forum
(LIPF)
Non-life Insurance
Product Forum
(NIPF)
Health Insurance
Product Forum
(HIPF)
Project Steering
Committee
(PSC)
Responsible for:
liquidity risk, market
risks, life insurance
underwriting and
pension risks, credit
risks of the
investment portfolio
Responsible for:
non-life
underwriting and
credit risks
Responsible for:
operational risks
Responsible for:
compliance risks,
reputational risks
and sustainability
risks
Responsible for:
life underwriting
risks
Responsible for:
non-life
underwriting risks
Responsible for:
health underwriting
risk
Responsible for:
project risks
110
Risk management is initially carried out at the level of individual companies and then
comprehensively at Group level. The management of individual Group members and the
persons in charge of risk management are responsible for the establishment and operation of
the risk management system.
The operation of the risk management system is transferred from the parent company to the
Group with minimum standards harmonised by the Triglav Group Subsidiary Management
Division, in cooperation with the parent company's Risk Management Department, which is
responsible for risk management minimum standards. Through the common standards, the
Group ensures an effective and transparent risk management system at Group level, which is
based on effective communication, quality exchange of data and information, time availability,
methodological consistency, accounting verifiability and integrity.
9.1.2
Risk management process
The key building blocks of
the comprehensive risk management process
are the Group's strategy
and the Company's business plan. These elements are used to define
the Group-level risk
appetite
for all material categories of risk that the Group is willing to assume. Additionally, this
document outlines the key indicators for measuring and monitoring these risks, including their
target and maximum values. Zero tolerance is established for all risks the Group is unwilling to
assume. One of the key indicators for measuring business performance and the achievement of
strategic objectives is the
capital adequacy ratio
.
The risk management process
consists of risk identification, assessment or measurement,
management, monitoring and reporting.
Risk identification
is an ongoing process involving business functions at all levels. It is normally
carried out once a year as part of drawing up the business and financial plan, and more
frequently if necessary.
The standard Solvency II formula (the regulatory method) is primarily used for
risk assessment
.
The formula is based on standard volatility and own risk exposure. The result of the individual
risk assessments shows how much own funds would decrease in a stress scenario. The greater
the impact of the risk of own funds, the more material the risk. The overall risk assessment (the
solvency capital requirement) takes into account the diversification specified in the standard
formula as prescribed by law. The risk assessment is complemented with the Company's own
assessment of the volatility of risk factors, generally taking into account the Value at Risk
111
method, with the same confidence level of 99.5% over a one-year horizon. Risks are additionally
assessed according to the methodology of S&P credit rating agency.
In the
risk management
process, the target values or limits for assumed and potential risks are
defined and must be complied with when assuming these risks. The Company employs well-
established multi-level risk monitoring systems to efficiently identify potential risk increases.
These trends are identified through processes at the business line level and regularly
communicated to the relevant persons by key functions. At Group level, exposure concentration
and heightened volatility for risks associated with the Group's major vulnerabilities are closely
monitored. Material detected or identified risks are treated also in the own risk and solvency
assessment process.
The Risk Management Department regularly
monitors
the matching of the current risk profile
and the defined risk appetite. The findings are reviewed by the Risk Management Committee,
which approves appropriate measures to address any detected deviations. The Committee's
findings and actions are regularly
reported
to the Management Board, the Supervisory Board
and its Risk Committee.
Risk management also encompasses the
own risk and solvency assessment process
, which
includes assessing solvency requirements. The appropriateness of the regulatory method is also
evaluated
by
incorporating
findings
from
the
internal
risk
assessment
method.
A
comprehensive analysis is conducted at least annually to determine the regulatory method's
suitability.
As part of the own risk and solvency assessment process, the appropriateness of the strategic
guidelines is assessed in terms of ensuring capital adequacy. Measures are planned to maintain
the Group's capital adequacy ratio within the target range of 200–250%. The appropriate value
of the ratio is ensured through the capital management process. The movement of the ratio is
monitored through a set of detailed risk indicators and exposure limits across all segments of
the Group's operations. Maintaining capital adequacy within the target range is an ongoing
process, which requires regular review of business decisions in terms of profitability and the
risks assumed. Capital adequacy is also influenced by the dividend policy, which is defined in the
Capital Management Policy of the Company and the Group and is subject to capital adequacy
targets.
In the context of the own risk and solvency assessment process, the sustainability of capital
adequacy is evaluated using stress scenarios that account for existing, potential and emerging
risks, with each type of risk being assessed individually. These scenarios enable the Company to
take appropriate action, such as adjusting the guidelines for transaction acceptance, premium
rates, the limit system, risk transfer and other activities. This approach strengthens the Group's
resilience to identified risks and supports the improvement of internal control systems, while
also updating an effective strategic decision-making process.
9.1.3
Risk classification
Internal risk monitoring is conducted in accordance with the standard formula prescribed by the
Insurance Act (ZZavar-1). The methods used to manage each type of risk, along with the
exposures and the assessment of these risks, are presented in
Section 2.8 of the Accounting
Report
.
112
The most important types of risks assumed in the course of operations are as follows:
▪
Underwriting risks
are the risks of loss or of adverse change in the value of insurance
liabilities due to inadequate pricing and provisioning assumptions taken into account in the
calculation of insurance technical provisions. Underwriting risks are divided into
non-life
underwriting risks
(including health insurance) and
life underwriting risks
(including
pension insurance). In direct insurance business, the Company is predominantly faced with
traditional underwriting risks.
▪
Non-life underwriting risks
comprise premium risk, provision risk, lapse risk and
catastrophe risk.
▪
Life underwriting risks
comprise mortality risk, longevity risk, morbidity risk, lapse risk,
expense risk, catastrophe risk and revision risk.
▪
Market risks
are the risks of loss from adverse changes in the financial position, which may
result from fluctuations in the level and the volatility of market prices of assets, liabilities
and financial instruments. They comprise interest rate risk, equity risk, property risk, spread
risk, currency risk and market concentration risk.
▪
Credit risks
are the risks of loss or adverse change in the financial position of the company
due to fluctuations in the credit position of counterparties and are a result of the debtor's
inability to fulfil contractual obligations.
▪
Liquidity risk
is the risk of loss if the company is unable to settle all due obligations or is
forced to provide the necessary funds at significantly higher costs than usual. The risk of
settling matured and contingent liabilities and market liquidity risk are monitored in the
context of the liquidity risk.
▪
Capital risk
is the risk of loss due to inadequate capital amount and/or structure with regard
to the size and nature of the business. The risk may also arise from difficulties encountered
when the company seeks to acquire additional capital, particularly in situations requiring a
rapid capital increase and/or under adverse conditions. Capital risks also include legislative
changes and changes in accounting standards having an impact on the Group's capital
adequacy and, consequently, on the dividend payment.
▪
Operational risks
are the risks of loss arising from inadequate or failed internal processes,
personnel or systems, or from external events and their impact. They also include
information security risks with an emphasis on cyber risks and major business interruption
events.
▪
Non-financial risks
include material strategic risks, reputational risk, Group risk and
sustainability risks. They predominantly originate from the external environment and are
closely linked to other risks, especially operational risks. Generally, they include from
several realised factors both inside and outside of the Group. Sustainability risks are also
identified and assessed through the double materiality assessment (DMA) process, in
accordance with ESRS standards. See Section
10.1.5 Double materiality assessment
for more
information.
The Group is also exposed to
potential or emerging risks.
These are risks that may develop in the
future or that already exist but are not yet considered material. They are difficult to assess but
may have a significant impact on the business. They cannot be predicted based on past
experience as there is often not enough data from which to predict either the frequency or the
severity of the damage caused.
Potential or emerging risks are therefore monitored closely and, in view of the findings, the risk
management system is upgraded accordingly.
113
Classification of the Group's risks according to IFRS
The International Financial Reporting Standards
comprise
underwriting, market, credit,
liquidity
and
other risks
. The Group's risk classification can be translated into the IFRS risk
classification as follows:
▪
In accordance with said standards, the most common market risks are currency, interest rate
and other price risks, including equity and property risks.
▪
Under IFRS, credit risks include counterparty default risk, a significant part of which
comprises exposures from reinsurance, cash, cash equivalents and receivables, as well as
spread risk and market concentration risk. The classification used by the Group considers
the latter two as part of market risks.
▪
There are no differences between the classifications of underwriting risks and liquidity risk.
▪
Other risks as defined by the IFRS include operational, capital and non-financial risks.
The situation is regularly and systematically monitored. Risk exposure and risk assessment
based on regulatory requirements and internal risk classification are reported to the relevant
bodies and the regulator. Due to the differences in the IFRS and Solvency II valuation, the values
of individual balance sheet items may differ noticeably, which is also reflected in differences in
the identified exposure to individual risks. In addition, different valuation methods affect the
sensitivity of the items and therefore the risk assessment. A more detailed presentation of the
differences between the two valuations is included in the Solvency and Financial Condition
Report, which is published on the website (
www.triglav.eu
).
Risk exposures according to the classification used in the risk management system are
presented further on in the text.
9.2
Capital position
The ongoing capital management process ensures that capital is maintained at its optimum
level and structure. Its use is optimised while also managing capital and other risks.
9.2.1
Capital management
4
A well-integrated risk management system is essential to effective management of capital and
capital risk.
Ensuring capital adequacy within the target range
allows the Group to maintain
capital that is always aligned with its risk profile and business strategy. To achieve its strategic
business development objectives and optimise its capital structure and return on equity, the
Company also issued a new subordinated bond in July 2024. This issue was part of the Group's
regular capital management and is considered in the calculation of capital adequacy. See
Section
6.7 Bonds
for more information.
The purpose of capital management is to achieve safe and profitable operations, as well as a
long-term and stable return on investment, by paying out dividends based on the criteria in the
dividend policy. When entering into transactions, profitability is consistently assessed in
relation to the risks assumed. This ensures the Group's target capital adequacy while providing
an appropriate return to shareholders.
4
SASB: FN-IN-550a.3
114
The Group's target capital adequacy is set within the range of 200–250%. This means that the
Group has an adequate amount of capital to carry out its core business and cover potential
losses. Capital surplus provides protection against losses due to unforeseen adverse events and
volatile capital requirements. While maintaining regular capital adequacy, the existing level of
capital and its future adequacy are planned and assessed.
Capital adequacy also has a significant impact on the Group's credit rating. Therefore, when
making business decisions, the criteria of the models of major credit rating agencies are taken
into account. The Group's capital model is assessed by the credit rating agencies S&P Global and
AM Best. See Section
6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav
for more
information on the credit rating.
9.2.2
Capital adequacy and the risk profile in 2024
Effective capital management enhances the Group's operations, enabling it to make the right
decisions and maintain its competitive edge.
115
Explanation of differences in capital valuation in the balance sheet for solvency and financial
reporting purposes for the Triglav Group as at 31 December 2024 (EUR million)
The definition of equity in the balance sheet for the preparation of financial statements differs
from its definition for solvency purposes. Differences and important reasons for changes in
items of both types of capital in 2024 are described in
the Group's Solvency and Financial
Condition Report for 2024
, D and E sections, available at
www.triglav.eu.
Capital adequacy is calculated according to the Solvency II standard formula as the ratio
between eligible own funds and the solvency capital requirement. Adjustments and
simplifications are not taken into account in the calculation.
The Triglav Group was well-capitalised as at 31 December 2024. Its capital adequacy ratio stood
at 219%, within the target range, aligning with the capital management strategic objectives and
the dividend policy criteria presented in Section
9.2.1 Capital management
. The Group's
adequate capital position and resilience to potential adverse business conditions were also
confirmed by the results of the 2024 stress tests conducted for the insurance sector by the
European Insurance and Occupational Pensions Authority (EIOPA), in which the Group
participated.
Capital adequacy of the Triglav Group and Zavarovalnica Triglav
Triglav Group
Zavarovalnica Triglav
31 Dec 2024
31 Dec 2023
31 Dec 2024
31 Dec 2023
Available own funds (EUR million)
1,105.5
943.2
1,044.8
964.0
SCR (EUR million)
504.9
471.5
416.4
389.8
Capital adequacy (%)
219
200
271
247
The Group's capital adequacy was affected by the increase in own funds by EUR 162.3 million
compared to 2023. The bulk of the increase comes from the issuance of a subordinated bond in
2024, while the remainder stems from a higher reconciliation reserve. The available own funds
for 2024 reflect the expected dividend for the financial year of EUR 65.7 million, whereas those
for 2023 included an expected dividend of EUR 8.1 million. The Group's solvency capital
requirement increased by EUR 33.4 million, primarily due to higher capital requirements for
underwriting risks resulting from business volume growth.
989.0
1,047.3
1,105.5
105.6
38.0
484.5
134.7
0.9
63.7
151.2
53.4
24.0
559.7
132.1
80.7
12.4
0
400
800
1.200
Group's equity*
Intangible assets and deferred acquisition costs**
Net deferred taxes
Investments in subsidiaries and associates
Property
Financial investments
Net unit-linked insurance assets
Reinsurers' share of technical provisions
Technical provisions
Subordinated liabilities
Other assets and liabilities
Excess of assets and liabilities
Deductions for participants in other financial undertakings, and expected dividends ***
Deductibles for non-available own fund itmes
Subordinated liabilities
Group's available own funds
* Consolidation method for solvency purposes differs for Triglav Skladi, Triglav, pokojninska družba, Sarajevostan, Triglav penzisko društvo, Skopje and Triglav Fondovi.
** The fair value of intangible assets is valued at 0.
*** In this item interests in companies with sectoral rules and forseeable dividends are included.
116
At least once a year
a sensitivity analysis of
the Group's
capital adequacy ratio
is performed
to
test the effects of major changes in selected variables. Based on this analysis, the stability of the
Group's capital position and its resilience to material risk factors is assessed.
The analysis as at 31 December 2024 shows sensitivity to individual shocks on financial markets.
The sensitivity analysis of the Group's capital adequacy ratio
Among the risks included in the standard formula, the Group is most exposed to underwriting
and market risks, followed by operational and credit risks. Within the Group, the parent
company assumes the bulk of the risks. See Section
2.8 of the Accounting Report
for more
information about the types of risks assumed by the Group.
The risk profile of the Company and the Group shows the types of risks to which they are most
exposed.
219%
222%
216%
221%
217%
212%
226%
228%
210%
222%
216%
150%
175%
200%
225%
250%
Capital adequacy ratio as at 31 Dec. 2024
Equity investments +25%
Equity investments -25%
Interest rates +50 bp
Interest rates -50 bp
Credit spreads +50 bp
Credit spreads -50 bp
Property +25%
Property -25%
Exchange rates +20%
Exchange rates -20%
117
Risk dashboard of Zavarovalnica Triglav and the Triglav Group* as at 31 December 2024
Risk
Risk
assessment
(current)
Risk trend
(future)
Note
Capital
adequacy
and capital
risk
◼
The capital adequacy of the Company and the Group remains within
the target range, as confirmed by the EIOPA stress test. The Group's
adequate capital and financial strength were reaffirmed by S&P
Global and AM Best, which assigned a long-term credit rating of "A"
and a financial strength rating of "A". S&P Global also upgraded its
medium-term outlook from stable to positive.
Underwriting
risks
◼
The assessment of underwriting risks had not changed significantly
over the past year. The growth in insurance premium resulted in a
slight increase in exposures to provision, premium and catastrophe
risks, leading to a corresponding rise in capital requirements.
Market risks
◼
The Group continues to maintain risks at defined levels. Particular
attention is given to identifying optimal investment policies, with
special focus on asset-liability matching.
Credit risks
◼
Credit
risks
remain
low
due
to
regular,
systematic
and
comprehensive exposure management. The suitability and quality of
reinsurance partners are regularly reviewed to ensure they are well-
diversified. Stress testing conducted as part of the ORSA process
confirmed the effectiveness of these measures.
Liquidity risk
◼
The
Company's
strong
liquidity
position
and
the
adequate
operational liquidity of the Group's subsidiaries are ensured through
regular liquidity monitoring. Liquidity was verified as part of the
ORSA process through internal stress tests as well as the stress test
defined by EIOPA. It was confirmed by all of them that the parent
company and its subsidiaries would have adequate liquidity even in
the event of extreme events.
Operational
risks
◼
Operational risks are managed proactively. Priority is given to the
regular maintenance and upgrading of outsourcing management
and the information security management system, with a particular
focus on cyber risks. Internal interprocess risks are also managed.
Operational risks are primarily increased by large-scale regulatory
changes and the general staffing risk when recruiting workers in
shortage occupations.
* An overall assessment of the main risk categories was made on the basis of quarterly risk reports. The risk trend shows a potential
assessment of future risks relative to the latest projections.
i) The colour scale of assessed risks:
High
Medium
Low
ii) Risk trend: (
↓
) downward, (
→
) stable, (
↑
) upward
The presentation of the Triglav Group's risk profile and assessments by individual risk category
are based on market values for solvency purposes. The Company uses a regulatory method,
which is assessed as appropriate for risk measurement in the context of the own risk and
solvency assessment process.
118
Risk profile assessment* of the Triglav Group as at 31 December 2024
* The risk profile is determined based on risk assessment using the standard formula, without taking into account the effects of
diversification across individual risk categories.
As at 31 December 2024, the Group was financially stable and adequately liquid with a strong
capital base.
9.2.3
Identified future risks
The main risk in recent years has stemmed from
inflationary trends and the resulting high
interest rates
. As inflationary pressures ease, central banks have begun to cut key interest rates,
which is expected to stimulate economic growth in the future. However, the future trajectory of
interest rates and economic activity remains uncertain. This also implies future risks, particularly
the possibility of a continued period of high central bank interest rates and low economic
growth. Risks related to geopolitical uncertainty and its impact on the economic and political
environment in which the Group operates remain a key concern.
With regard to
market risks
, particularly an increase in spread risk could arise due to the
aggravated economic situation or deteriorating credit ratings of issuers of securities. As
economic activity deteriorates, negative developments in stock markets and a possible decline
in the value of real property may also be expected. This could then manifest in a decrease in the
value of investments. The potential impact of interest rate risk associated with possible changes
in risk-free interest rates is managed by actively matching assets and liabilities.
A more severe recession could negatively affect demand for insurance and reduce the volume
of premiums written, which would have a detrimental effect on the Group's operations. This
would also affect
liquidity risk
, which could increase due to the potential reduction of inflows
from the insurance business and a lower market liquidity of the investment portfolio.
An increase in
underwriting
and
credit risks
could also affect business in the coming year. In the
context of underwriting risks, premium risks and the appropriateness of pricing policies are
consistently monitored, while provision risks are managed. To mitigate credit risks, mechanisms
for assessing the credit ratings of major partners are being strengthened, along with close
monitoring of their payment discipline. The adequacy of reinsurance protection is also carefully
assessed and adjusted where necessary.
55%
25%
8%
7%
2%
3%
57%
25%
7%
6%
2%
3%
Underwriting risks
Market risks
Operational risks
Credit risks
Risks of companies
from other financial
sectors
Risks of residual
companies
2023
2024
119
As part of testing the Group's sensitivity, the factors that could have a material impact on the
Company's and the Group's operations in the coming years were examined.
Sensitivity analysis as at 31 December 2024* (EUR)
Total impact on equity
Triglav Group
Zavarovalnica Triglav
Spread risk (+50 bp)
–34,955,884
–29,159,032
Interest rate risk (+100 bp)
–23,732,656
–18,898,646
Equity risk (–10%)
–5,921,344
–5,568,517
Property risk (–5%)
–8,834,211
–5,732,869
Total
–73,444,095
–59,359,064
* The effects shown include the tax aspect.
A sensitivity analysis shows potential impacts on the Group's capital in the case of an adverse
event with a sudden decrease in interest rates (by 100 basis points), an increase in credit spreads
(by 50 basis points), a drop in equity exposure (by 10 percentage points) and in real property
exposure (by 5 percentage points). Should this event be realised, the Group's capital would
decrease by EUR 73.4 million.
The sensitivity analysis of the Group's credit portfolio again confirmed that the credit ratings of
banks and reinsurers, as well as the share of insurance and subrogation claims, have a significant
impact on operations. The sensitivity analyses for the renewal rate and the suitability and
sensitivity analysis to test the appropriateness of the "probability of default" assumption
indicated a high sensitivity of the Group's portfolio to these factors.
As part of the liquidity stress scenario, sensitivity testing revealed that the Group is vulnerable
to mass policy lapse. Equally important are any declines in the value of liquid investments that
may materialise as a result of reduced liquidity or other financial market fluctuations.
120
10.
Sustainability report
10.1
General disclosures (ESRS 2)
10.1.1
Basis for preparation
The Sustainability Report is an integral part of the Annual Report. It is prepared in accordance
with the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability
Reporting Standards (ESRS) and discloses the information required by the EU Taxonomy
Regulation (Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing
Regulation (EU) 2020/852).
The consolidation level of sustainability disclosures
5
The financial reporting for the Group comprises all companies included in the consolidated
financial statements (See Section
2.3 of the Accounting Report
for more information).
However, the consolidation level of data in the 2024 Sustainability Report differs for some
disclosures from the scope of companies included in the consolidated financial statements.
Companies with no more than one employee and no office space of their own are excluded in
the carbon footprint calculation. These companies are Triglav INT d.o.o., Triglav Savetovanje
d.o.o., Beograd, u likvidaciji, Triglav Savjetovanje d.o.o., Sarajevo, Triglav Savjetovanje d.o.o.,
Zagreb, u likvidaciji, Triglav upravljanje nekretninama d.o.o., Podgorica, in Triglav upravuvanje
so nedvižen imot DOOEL, Skopje.
The Triglav Group currently includes only Zavarovalnica Triglav in reporting on financed
emissions and has not yet extended the scope of consolidation to other Group companies. The
process of including additional companies in the calculation of financed emissions is under
evaluation, taking into account methodological requirements and the availability of relevant
data. When reporting the key performance indicator related to underwriting activities based on
the requirements of the EU Taxonomy Regulation, only Zavarovalnica Triglav's gross written
premium is included in the calculation of the Triglav Group's taxonomy-alignment ratio in the
numerator. In future reporting periods, reporting will continue to be analysed and gradually
expanded in line with regulatory requirements and best practices.
Sustainability risks are managed across all (re)insurance and major financial companies within
the Group. However, for other companies within the Group companies, these risks are rendered
negligible due to their size and are therefore not actively managed.
Disclosures related to marketing activities do not include the following companies:
Zavarovalnica Triglav Re d.d., Triglav, pokojninska družba d.d., Triglav INT d.o.o., Avtoservis d.o.o.,
Triglav Svetovanje d.o.o., Upravljanje nepremičnin d.o.o., Triglav Savetovanje d.o.o., Beograd, u
likvidaciji, Triglav Osiguranje a.d., Banja Luka, Triglav Fondovi d.o.o., Sarajevo, Triglav
Savjetovanje d.o.o., Sarajevo, Autocentar BH d.o.o., Sarajevostan d.d., Triglav Savjetovanje d.o.o.,
Zagreb, u likvidaciji, Triglav upravljanje nekretninama d.o.o., Podgorica, Lovćen životna
osiguranja a.d., Podgorica, Lovćen Auto d.o.o., Podgorica, Triglav Osiguravanje život a.d., Skopje,
Triglav penzisko društvo, a.d., Skopje, in Triglav upravuvanje so nedvižen imot DOOEL, Skopje.
The information on supplier management applies to all subsidiaries in Slovenia, except Eskulap,
družba za zdravstvene storitve d.o.o.
5
BP-1_01, BP-1_02, BP-1_03.
121
The compliance information does not include Triglav INT d.o.o.; Triglav zdravje asistenca d.o.o.;
Eskulap d.o.o.; Triglav Avtoservis d.o.o.; Triglav INT d.o.o., Belgrade; Triglav Savetovanje d.o.o.,
Belgrade; Triglav Fondovi d.o.o., Sarajevo; Triglav Savetovanje d.o.o., Sarajevo; Triglav
upravljanje nekretninama d.o.o., Sarajevo; Autocentar BH d.o.o.; Sarajevostan d.o.o.; Triglav
Savjetovanje d.o.o., Zagreb; Triglav upravljanje nekretninama d.o.o., Zagreb; Triglav upravljanje
nekretninama d.o.o., Podgorica; Lovćen Auto d.o.o.; Triglav upravuvanje so nedvižen imot DOOEL
Skopje.
The disclosures required by the ESRS have been audited for 2024 but were not audited for 2023.
The 2024 tables for Zavarovalnica Triglav, d.d. include data for Triglav, Zdravstvena
zavarovalnica, which was merged into Zavarovalnica Triglav d.d. that year; however, the 2023
disclosures do not include these data for Zavarovalnica Triglav d.d.
The double materiality assessment process described in
Section 10.1.5
encompasses impacts,
risks and opportunities primarily stemming from the Group's insurance and asset management
activities, as identified by stakeholders during the double materiality assessment process. The
Sustainability Report predominantly provides information on policies, targets, risks and metrics
related to the core elements of the value chain. Where upstream and downstream data are also
considered, these are disclosed separately under the corresponding topics and/or data sections.
See Section
10.1.6 Identified impacts, risks and opportunities
for more information.
6
No information related to intellectual property, know-how or innovation outcomes has been
omitted from the Sustainability Report. Furthermore, no foreseeable events or matters under
ongoing negotiations have been excluded from disclosure.
7
Changes in the preparation or presentation of sustainability information
8
The Triglav Group began systematically disclosing non-financial impacts in 2009, following the
GRI G3 guidelines. In 2012, it identified seven material impact groups as its first material
sustainability topics, and in 2015, conducted its initial materiality analysis, which involved
stakeholder engagement. The Group has continuously enhanced its reporting by integrating
new indicators and standards, such as SASB and SDGs, and by regularly updating key
sustainability topics.
For the 2024 reporting period, the Group's sustainability disclosures have been restructured to
align with the CSRD and ESRS. These changes include:
▪
The inclusion of a Sustainability Report (ZGD-1M) in the Group's annual report, prepared in
accordance with ESRS requirements;
▪
The implementation of a double materiality assessment process in line with ESRS
requirements to identify material impacts, risks and opportunities in insurance and asset
management activities, as well as, where applicable, in upstream and downstream
segments of the value chain;
▪
The introduction of new disclosures and indicators as required by the ESRS, encompassing
descriptions of material impacts, risks and opportunities, along with the policies and
metrics established to address them.
Compared to previous annual reports, changes were made in the carbon footprint calculation.
Due to methodological challenges in the calculation of operational Scope 3, only Scopes 1 and 2
6
BP-1_04.
7
BP-1_05, 06.
8
IRO-1_15, BP-2_10.
122
are included. Minor changes, including the methodologies used for calculating individual
indicators, are detailed within the text and footnotes.
9
The table of the Triglav Group's key sustainability topics by year illustrates major shifts in their
identification since their initial identification in 2012
10
2012 (GRI G3.1)
2015 (GRI G4)
2019 (GRI GS)
2023 (GRI US)
2024 (ESRS)
Governance of the
organisation
Ensuring capital adequacy
Understanding client needs
Fair and transparent
business
Services and products
promoting social and
environmental benefits
Fair business practices
Profitability
Engaged and highly skilled
employees
Long-term stability and
profitability of operations
Data privacy and security
Employment and labour
practices
Personal data protection
A client-tailored insurance
offering – throughout the
entire life cycle
Business continuity and
preparedness for extreme
events
Climate change adaptation
and mitigation
Human rights
Prompt claims payouts
Clear terms and conditions
Commitment to employee
health and safety
Supplier relationship
management
Relationship with clients
and suppliers
Business strategy and plans
In-depth information on
the Triglav Group's
business performance and
position
Comprehensive risk
management
Accessibility of services and
financial literacy
Integration into and
development of the local
environment and the wider
community
The Triglav Group's clear
strategy
Community engagement
Care for the natural
environment
Transparent and easy-to-
understand products
Business ethics
Employee care
Equal treatment and
opportunities for all
Time horizons
11
The Company deviates from the proposed time horizons defined in ESRS 1, section 6.4. Instead,
it has adopted time horizons in its internal documents based on the business cycle, as
recommended by EIOPA
12
. The short-term is defined as 1 to 5 years, the medium-term as 6 to 10
years, and the long-term as more than 10 years.
Disclosures arising from other legislation relating to sustainability reporting
13
This report also includes sustainability disclosures in accordance with the Global Reporting
Initiative (GRI) sustainability reporting standards, including their guidance for the financial
sector, as well as the Sustainability Accounting Standards Board (SASB) and their industry-
specific guidance for insurance and asset management. The range of topics and disclosures is
presented in the GRI and SASB indices.
9
BP-2_11-14.
10
SMB-3_11; In the first definition of the Group's sustainability topics in 2012, a total of seven material sustainability
topics were identified; 28 in 2018, 25 in 2019, 17 in 2023 and 10 in 2024.
11
BP-2_01, BP-2_02.
12
Consultation paper on application guidance on using climate change scenarios in the ORSA.
13
ESRS 2 BP-2_16.
123
Incorporation by reference
14
All content required by the ESRS is presented in Section 10. Sustainability Report. However, the
information on risk management and internal controls over sustainability reporting (GOV-5) is
included in Section 2.8
Risk management
in the Accounting Report.
10.1.2 Sustainable development management system
15
Governance of Zavarovalnica Triglav
Zavarovalnica Triglav, as the parent company, has a two-tier governance system in place. Its
governance bodies are as follows:
General Meeting of Shareholders
,
Management Board
and
Supervisory Board
. In 2024, the Management Board had five members, including one Worker
Director:
▪
Andrej Slapar
, President of the Management Board. Professional profile: management,
strategic management, commercial law, insurance and reinsurance, actuarial science.
▪
Uroš Ivanc
, Member. Professional profile: Management and organisation, strategic
management, insurance, financial management, financial markets and analyses, asset
management,
actuarial
analyses
and
risk
management.
Responsible
for
the
environmental, social and corporate sustainable development (ESG) activities.
▪
Tadej Čoroli
, Member. Professional profile: Management, strategic management,
commercial law, insurance, marketing.
▪
Marica Makoter
, Member and Worker Director. Professional profile: Management,
strategic management, commercial law, insurance, human resources and organisation,
worker representation.
▪
Blaž Jakič
, Member. Professional profile: Insurance, finance, accounting, business
strategy
and
business
models,
governance
systems,
actuarial
analyses,
risk
management.
The Company's conduct of business is supervised by the Supervisory Board. As at 31 December
2024, it consisted of eight members, six shareholder representatives and two employee
representatives:
▪
Shareholders representatives:
▪
Andrej Andoljšek
(Chairman),
▪
Tim Umberger
(Vice Chairman),
▪
Barbara Nose
, Member,
▪
Tomaž Benčina
, Member,
▪
Monica Cramér Manhem
, Member,
▪
Rok Ponikvar,
Member.
▪
Employee representatives:
▪
Aleš Košiček
, Member
▪
Janja Strmljan Čevnja
, Member.
In 2024, the Company had the following committees: the Audit Committee, the Appointment
and Remuneration Committee, the Strategy Committee and the newly established Risk
Committee, as well as the Nomination Committee as an ad-hoc committee.
In assessing its composition and performance in accordance with the ZZavar-1 and the ZGD-1,
the Supervisory Board takes into account that all members possess the relevant knowledge
relating to insurance and financial markets, the business strategy and business models,
14
ESRS 2 BP-2_20.
15
ESRS 2 GOV-1_01-15, GOV-1_17, G1.GOV-1_01-02, GOV-2_02,
IRO-1_13, SASB: FN-AC-330a.
124
governance systems, financial and actuarial analyses, risk management, and the regulatory and
legal environment in which the Company operates, as well as the skills and experience in these
areas.
By signing the Statement of Independence and the Statement of Loyalty, the members of the
Supervisory Board confirmed that they comply with the conflict of interest criteria. The
proportion of independent Supervisory Board members is 100%.
Sustainable development management
The organisation and operation of the sustainable development system is regulated in a way
that ensures the overall alignment of all important sustainable development activities with the
Group's strategic ambitions and compliance with sustainability-related legislative requirements.
The Management Board is responsible for developing and implementing the Group's strategy,
which includes its strategic ambitions in sustainable development, while the Supervisory Board
approves the Group's strategy and takes note of its implementation. The sustainable
development policy is adopted by the Management Board and approved by the Supervisory
Board. A Management Board member is responsible for the environmental, social and corporate
sustainable development (ESG) activities.
All activities related to the Group's sustainable development is overseen by the Sustainable
Development Department within the Management Board Office of the Group's parent company,
of which the Management Board member responsible for the environmental, social and
corporate sustainable development activities is directly in charge.
The Compliance and Sustainable Development Committee (hereinafter: CSDC) at the Company
monitors the sustainable aspects of the Group's operations, and the Chairperson of the CSDC
reports to the Management Board on the committee's work. The CSDC is composed of managers
and other employees from various departments and divisions, following the principle of
representing key departments and divisions. It ensures compliance, ethics and sustainability,
with particular emphasis on the areas of focus for each meeting. The chair of the CSDC is a
member of the Company's Management Board.
Depending on the needs and nature of the work, the Sustainable Development Department
provides technical support to business functions and the Management Board, while also
coordinating the formation of working groups to effectively implement strategic ambitions and
meet sustainability-related legislative requirements.
Strategic impacts, risks and opportunities are addressed during each strategy update, starting
from an analysis of key industry trends, stakeholder expectations, and identified social and
environmental challenges (e.g. demographic change, climate change). The Group's strategic
ambitions for 2025–2030 are shaped by the expectations of its owners for a profitable, safe and
stable investment. These ambitions also reflect the evolving needs of its clients, with the Group
aiming to continue delivering a safe and seamless user experience, while ensuring high
employee satisfaction and engagement. This will be achieved through an agile and efficient
organisational structure, with strengthened cooperation with partners. By pursuing the
sustainability objectives outlined in its strategy, the Group seeks to maintain a long-term,
sustainable foundation for profitable and safe operations, including supporting the transition to
a sustainable society and mitigating its impact on climate change. Strategic risks are regularly
monitored as part of the risk management process. Despite the long-term nature of the strategy
period, the Group remains flexible and may adjust its strategy in response to significant changes
in the business environment or the emergence of major strategic risks. The Group's ongoing
product development and agile organisational culture enable it to swiftly adapt its product
125
portfolio in response to market changes, even within a short timeframe. Additionally, by
maintaining high liquidity within its investment portfolio, which constitutes the largest part of
its assets, the Group can adjust its asset structure and facilitate reallocation as needed. Through
an ongoing capital management process, the Group ensures an optimal volume and quality of
its funding sources, along with the optimal cost of capital.
16
The Company's business functions report sustainability-related activities to the Management
Board, while the Sustainable Development Department provides updates twice a month to the
Management Board member responsible for ESG. The Audit Committee of the Supervisory Board
and the Supervisory Board monitor these processes and oversee sustainability reporting, which
they discuss and approve as part of the adoption of each Triglav Group's annual report.
17
In 2024, the Management Board members received an average of 18.6 teaching hours of training
on sustainability-related topics. Additionally, an online training course on best sustainability
practices in the insurance industry was organised for the Supervisory Board members in March
2024.
18
Management of sustainability aspects in the Triglav Group
16
ESRS 2 SBM-2_07–12, SBM-3_10, E1.SBM-3_07.
17
ESRS 2 GOV-2_01.
18
ESRS 2 GOV-1_16.
Management Board of
Zavarovalnica Triglav
Management Board member
responsible for ESG
Sustainable Development Department
(Management Board Office)
Directing all activities related to sustainable development
Compliance and Sustainable Development Committee at the
Company
(managers and other employees from various departments and divisions as well as
a Management Board member)
Monitoring and directing activities and discussing legislative requirements in the
field of ESG
Adoption of internal acts related to the compliance risk management system and
ESG
Sustainable development working groups
(ad hoc groups, depending on the needs and nature of the work)
Sustainability
coordinators
(in the context of
the competent
departments of the
Company and at the
level of Group
companies)
▪
Integration and
implementation
of strategic
guidelines
▪
Compliance with
legislative
requirements
Supervisory Board of Zavarovalnica Triglav
126
Integration of sustainability-related performance in incentive schemes
19
The basis for the remuneration of the Management Board is the Remuneration Policy of
Zavarovalnica Triglav d.d. (hereinafter: the Remuneration Policy), which is based on Directive
2009/138/EC – Solvency II, as amended by Directive 2012/23/EU, Commission Delegated
Regulation (EU) 2015/35 supplementing Directive 2009/138/EC, Regulation (EU) 2019/2088 on
sustainability
‐
related disclosures in the financial services sector and the ZGD-1. The
Remuneration Policy is one of the policies with which the Company implements a robust and
reliable management system, ensures business integrity and transparency, and maintains the
appropriate capital strength of the Company. Furthermore, it encourages reliable and effective
risk management, and provides for the acquisition and retention of appropriately professionally
qualified, competent, responsible and engaged employees. The Policy is designed to take into
account the Company's internal organisation and the nature, scope and complexity of risks by
including sustainability risks. The variable remuneration of employees is determined by taking
into account the implementation of strategic guidelines, which also include the commitments
to sustainability, long-term interests and performance of the Company and the Triglav Group as
a whole. In 2024, the Remuneration Policy was amended in accordance with SDH's
recommendations and current legislation. The Remuneration Policy was approved at the 49th
General Meeting of Shareholders of Zavarovalnica Triglav d.d. on 4 June 2024.
The remuneration of the Management Board members consists of the basic salary (fixed part)
and a variable part of the salary. The basic salary is based on the Remuneration Policy, the
employment and performance contract and the Act Governing the Remuneration of Managers
of Companies with Majority Ownership Held by the Republic of Slovenia or Self-Governing Local
Communities (ZPPOGD). In accordance with the revised Remuneration Policy, the basic salary of
the President and members of the Management Board shall not exceed EUR 22,000.00. Every
two years, the ceiling shall be increased according to the increase in the average consumer price
index for each of the last two years.
The contract of employment and appointment to office concluded with the President and the
members of the Management Board will set the basic salary within the limits defined in this
Policy, i.e. the amount of the basic salary of the President of the Management Board shall be set
at the ceiling and the amount of the basic salary of each Management Board member shall be
up to a maximum of 95% of the President of the Management Board's salary, depending on the
duties and responsibilities of the specific Management Board member (e.g. taking into account
the sectoral division of their areas of responsibility, their individual qualities (knowledge,
experience, references, skills) and the remuneration of members of the management bodies of
comparable companies in the insurance sector in Slovenia and in the region).
Notwithstanding the above, during the period of validity of the ZPPOGD, the basic salary of the
President of the Management Board is set at five times the average gross salary in the previous
financial year, paid in the Triglav Group companies headquartered in the Republic of Slovenia
and consolidated in the annual report in accordance with the Companies Act, while the basic
salary of the Management Board members is set at 95% of the basic salary of the President of
the Management Board.
The performance-based variable remuneration may be set at a maximum of 60% of the basic
salaries paid in the financial year. If the Company meets at all of the following criteria: it is a
public limited company, more than 50% of its net revenue is generated in foreign markets, it has
more than 5,000 employees in the group and it has at least EUR 500 million of share capital, a
performance-based variable remuneration may be set up to a maximum of 100% of the basic
salaries paid in the financial year. Notwithstanding the above, during the period in which the
19
ESRS 2 GOV-3_01-06, E1.GOV-3_01-03.
127
ZPPOGD applies, the amount of the variable remuneration may be set at a maximum of 30% of
the basic salaries paid in the financial year. The variable remuneration includes part of the salary
for performance, part of the salary for the overall performance based on the overall annual
targets of the Management Board and part of the salary for individual performance based on
personal annual targets.
The Management Board's performance is determined by taking into account the Company's
performance in the short and long term, including taking into account the current and future
risks to which the Company is exposed. The performance assessment takes into account:
▪
Financial criteria
(70% of all criteria) that can measure the business volume, profitability of
the insurance activity, profitability of the investment activity, cost efficiency, return on
equity and growth in the Company's value or other financial performance criteria.
▪
Non-financial criteria
(30% of all criteria) that can measure the achievement of the business
strategy's non-financial objectives, compliance with the relevant regulations, internal acts
and limitations from the risk appetite statement, compliance with ethical and professional
standards, the achievement of sustainable development goals (environmental, social,
governance), and other non-financial performance criteria.
The variable remuneration is set in more detail using a methodology approved by the
Supervisory Board upon approval of the plan for the next financial year and a one-on-one annual
interview with each Management Board member, where the personal annual targets are
identified.
The variable remuneration proportion for Management Board members tied to the
Management Board's overall annual and medium-term sustainability objectives was up to 2.5%
of their basic salaries paid in 2024. Additionally, for Management Board members with
sustainability objectives included as part of their personal annual objectives, the proportion was
up to 7.5% of their basic salaries.
Environmental objectives, particularly carbon footprint reduction, are included among the
criteria assessed in the context of the sustainability objectives tied to the Management Board's
remuneration.
Data on the remuneration of the Management Board members are disclosed in Section
4.4 of
the Accounting Report.
Due diligence statement
20
The due diligence system ensures compliance with legislation, external commitments and
internal documents. Due diligence is conducted through targeted compliance reviews, internal
audits, monitoring operational loss event reports, providing recommendations, tracking
corrective actions and their effectiveness, regular risk assessments, evaluating the adequacy of
internal controls. Regular compliance audits address sustainability areas such as scenario
assessments for sustainability risks, non-compliance with human rights, ethical commitments,
corruption and bribery prevention, management of conflicts of interest, internal fraud risks and
violations related to labour and health and safety at work.
20
ESRS 2 GOV- 4_01.
128
The table below outlines how the Group implements the core elements of due diligence for
people and the environment, and where details are provided in the Sustainability Report.
Core elements of due diligence
Sections in the Sustainability Report
Disclosures relate to impacts on people
and/or the environment
(a) Embedding due diligence in
governance, strategy and
business model
▪
ESRS 2 GOV-2 – section 10.1.2
▪
People and the environment
▪
ESRS 2 GOV-3 – section 10.1.2
▪
People and the environment
▪
ESRS 2 SBM-3 – sections 10.1.3, 10.1.6
▪
People and the environment
(b) Engaging with affected
stakeholders in all key steps
of the due diligence
▪
ESRS 2 SBM-2 – section 10.1.4
▪
People and the environment
▪
S1 – section 10.3.1
▪
People
▪
S3 – section 10.3.3
▪
People
▪
S4 – section 10.3.2
▪
People
(c) Identifying and assessing
adverse impacts
▪
ESRS 2 IRO-1, section 10.1.5
▪
People and the environment
▪
ESRS 2 SBM-3, section 10.1.6
▪
People and the environment
(d) Taking actions to address
those adverse impacts
▪
ESRS 2 MDR-A, section 10.1.2
▪
People and the environment
▪
E1 – section 10.2.1
▪
The environment
▪
S1 – section 10.3.1
▪
People
▪
S3 – section 10.3.3
▪
People and the environment
▪
S4 – section 10.3.2
▪
People
▪
G1 – section 10.4.1
▪
People
(e) Tracking the effectiveness of
these efforts and
communicating
▪
S1 – section 10.3.1.2, 10.3.1.3
▪
People
▪
S3 – section 10.3.3
▪
People
▪
S4 – section 10.3.2.1
▪
People
▪
G1 – section 10.4.1
▪
People
Risk management and internal controls over sustainability reporting
Risk management, including sustainability risks, is outlined in
Section 2.8 Risk management
in
the Accounting Report. Sustainability risk management systems and processes are embedded in
this internal process and are continuously upgraded
.
21
10.1.2.1 Strategic ambitions in sustainable development
22
In the Triglav Group's strategic ambitions for sustainable development (ESG) covering the period
of 2021–2025, it is set out that by pursuing sustainability goals the Group is creating a long-term
stable basis for its profitable and safe operations, promoting the transition to a sustainable
society and reducing its impact on climate change. This approach is pursued across four key
areas: insurance and asset management, own business processes, responsible stakeholder
engagement and effective corporate governance.
In 2023, the Group's strategic ambitions were further developed with the adoption of its
Sustainable Development Policy
. Serving as the overarching document for the Group's
sustainability-related activities, it outlines the method of implementing the strategic ambitions,
establishes the system for managing ESG aspects and risks, defines key corporate governance
policies and provides guidelines for sensitive economic activities. The Group views sustainable
development as an opportunity across its asset management, insurance product development,
claims handling and energy efficiency segments. It is committed to increasing the proportion of
21
IRO-1_12.
22
FN-IN-410a.2, FN-AC-410a.2.
129
investments with sustainability characteristics, such as green and social impact bonds. Triglav
Skladi funds support environmental and social characteristics, in alignment with Article 8 of the
SFDR. In the insurance sector, products such as solar power plant insurance, micromobility
insurance, parametric insurance for climate risks and benefits for young farmers are being
developed. Looking ahead, the focus will be on expanding insurance offerings for sustainable
mobility and providing effective risk protection to companies using renewable energy sources.
Its sustainable (ESG) ambitions for 2025 are divided into four key areas, which are presented
below.
23
Insurance and asset management
In both strategic activities, insurance and asset management, the Group's activities are focused
on the transition to a climate-neutral and climate-resilient circular economy. In carrying out its
insurance and investment activity, the Group promotes sustainable economic activity, energy
efficiency and energy from renewable sources with an aim to reduce greenhouse gas The ESG
aspects are integrated into the development of insurance and investment products and services.
In asset management, the Group will not only double the share of its green and sustainable
investments compared to the 2020 base year, but also reduce its exposure to issuers on the Coal
Exit List (companies at which at least 20 per cent of electricity production or income stems from
coal) to less than one per cent of total investment value by 2025.
In its insurance activity, the Group will develop new and increase the presence of existing index-
based insurance products for drought, flood and other climate risks. The Group promotes its
range of insurance products related to sustainable mobility and provides effective risk protection
for companies involved in the production of energy from renewable sources.
Triglav Group's business processes
The Company has set up an assessment of suppliers by sustainability criteria and the Group's
comprehensive carbon footprint measurement and management (Scope 1 and 2).
Key
quantitative performance indicators by 2025:
▪
Reduce the location-based carbon footprint (Scope 1 and 2) per employee by 15% compared
to the 2019 base year;
▪
Increase the share of electricity from renewable energy source to 75%;
▪
Increase the share of electric and hybrid vehicles in the fleet to at least 30%.
Responsible stakeholder engagement
The Group acts with responsibility towards its employees, clients, partners and community at
large. It aims to maintain high levels of client (NPS)
24
and employee satisfaction. The concept of
flexible working was implemented with the aim of improving employees' work-life balance,
while expanding programmes promoting health and well-being. The focus will continue to be
on multidimensional diversity, intergenerational cooperation, and employee development and
training. The Group will continue to participate in corporate social responsibility projects and
enter into partnerships and give donations. In parallel, the Group will promote environmental
and social responsibility projects that contribute to the achievement of the United Nations
Sustainable Development Goals (SDGs).
23
ESRS 2 SBM-1_21, SBM-1_23.
24
S4.MDR-T_01, 04.
130
Effective corporate governance
The Group attains high standards of corporate governance and adheres to its code of ethics in
the performance of its business operations. By incorporating environmental, social and
governance factors, the Group plans to upgrade succession, diversity and remuneration policies
for the members of the management and strive to improve the diversity of the Group's
management and supervisory bodies in terms of gender, education and experience. The Group
will increase the scope of public disclosures on its sustainable operations by 2025.
At the end of 2022, a Sustainable Development Action Plan was developed for individual areas,
serving as the basis for implementing strategic actions and meeting legislative requirements.
Implementation of strategic guidelines and sustainable development goals of the Triglav Group
in 2024
▪
Insurance and asset management
→
The share of green, sustainable and social impact bonds in own investment portfolio:
an
increase from 11.1% to 12.9%
.
→
Triglav Skladi mutual funds: as at 1 December 2024, all funds were restructured into
funds
promoting environmental and social characteristics
, in accordance with Article 8 of
the SFDR.
→
Income from insurance products that promote general social and environmental
benefits:
an expanded product range and an increase in written premium in the insurance
business.
▪
The Group's business processes
→
Reduction of the Group's carbon footprint for Scope 1 and 2 (location-based):
a decrease
of 12%
.
→
Increase the share of electricity from renewable energy sources from
62% to 66%.
→
Sustainable mobility: a higher share of electric and hybrid vehicles in the fleet from
11%
to 17%
.
▪
Responsible stakeholder engagement
→
Delivering on the SDGs: continuing
the Insure Our Future project
with partners.
→
Maintaining a high ORVI index
.
→
Active relations with shareholders and investors and compliance with Ljubljana Stock
Exchange Prime Market terms and conditions.
▪
Effective corporate governance
→
Standards: high standards of corporate governance.
→
Policies: implementation of the Group's Sustainable Development Policy, Sustainable
Investment Policy and Statement on principal adverse impacts of investment decisions of
the Company on sustainability factors.
→
Global alliances: a signatory to the United Nations Principles for Responsible Investing
(PRI) and the United Nations Principles for Sustainable Insurance (PSI).
131
Strategic ESG Indicators
25
Triglav Group
Strategic indicator
Unit
2019
achievement
2020
achievement
2021
achievement
2022
achievement
2023
achievement
2024
achievement
2025
strategic
plan
Carbon footprint (Scope 1 and 2 –
location-based) per employee
tCO
2
eq/employee
2.18
1.99
1.90
1.64
1.51
1.34
1.85
Share of electricity consumption from
renewable energy sources
%
1%
4%
33%
63%
62%
66%
75%
Energy consumption per employee
TOE/employe
e
0.47
0.41
0.30
0.31
0.29
0.27
0.40
Average daily consumption of office
paper per employee (A4)
A4 sheet
53
45
20
19
17
17
27
Amount of waste generated per
employee
kg/employee
109
125
124
116
117
129
93
Share of electric and hybrid vehicles in
the fleet
%
4%
4%
4%
8%
11%
17%
30%
Share of investment exposure to
issuers on the Coal Exit List
%
na
na
na
na
0%
0%
<1%
Share of ESG bonds
%
na
4%
8%
10%
11%
13%
8%
Share of in-house training via e-
platforms
%
na
81%
91%
67%
52%
55%
>30%
Share of women in the Group's
management and supervisory boards
%
20%
13%
18%
24%
27%
26%
>20%
Average number of training hours per
employee
Number
5
24
31
33
32
31
28
Digital training for employees
%
21%
37%
81%
62%
52%
50%
0.35%
Employee satisfaction
Index ORVI
3.88
3.99
4.00
4.00
3.94
3.97
3.80
10.1.2.2 Sustainable development policy
26
The Sustainable Development Policy of Zavarovalnica Triglav d.d. and the Triglav Group
(hereinafter: the Policy) establishes the framework for the Group's sustainable development.
The Policy was adopted by the Company's Management Board and Supervisory Board. The goal
is to conduct the Group's core activities, i.e. insurance and asset management, in a manner that
delivers long-term economic, social and environmental value to shareholders, investors, clients,
employees, suppliers, partners, the wider society and the environment.
The Policy defines how the Group's strategic ambitions in sustainable development (ESG) will be
achieved. It addresses the following: the identification of risks and the perception of
opportunities to achieve business objectives; the sustainability management system at the
parent company and Group levels; guidelines on managing sensitive economic activities in terms
of sustainability risks; key corporate governance policies; and other key aspects of sustainable
development, such as responsibility to employees and corporate social responsibility projects. In
November 2024, the Group enhanced its strategic ambitions in sustainable development with
long-term goals extending to 2030. These goals focus on reducing the Group's carbon footprint,
increasing environmentally sustainable investments and bonds with sustainable characteristics,
and developing insurance products for renewable energy sources and sustainable mobility. At
the same time, the Group is reinforcing corporate social responsibility, diversity and ethical
business practices to ensure long-term resilience and sustainable growth.
25
ESRS 2 SBM-1_22, E1.MDR-T_01-08, S1.MDR-T_01–08.
26
ESRS 2 S1.MDR-P_01-04,06, S3.MDR-P_01-04, 06, S4.MDR-P_01-04, 06, E1.MDR-P_01-04, 06, G1.MDR-P_01-04, 06.
132
The table below provides an overview of key policies related to the management of identified material impacts, risks and opportunities. Further
details on these policies are provided in the individual sections. Material impacts, risks and opportunities are described in Section
10.1.6
.
Policy
Key policy messages
Areas of application
Responsible
body
Related standards/initiatives
Availability
Sustainable Development Policy
▪
A framework for implementing the Group's sustainability
strategy
▪
Commitment to long-term economic, social and
environmental value creation
▪
The sustainable development management system at the
Triglav Group
▪
Guidelines on sensitive economic activities
▪
Sustainability risk management
▪
Employee well-being, diversity and inclusion
▪
Sustainability reporting and stakeholder engagement
The Triglav Group (except for
the clients' assets managed in
mutual funds and discretionary
mandate assets, which are
managed by the Group's asset
management companies)
Management
Board of
Zavarovalnica
Triglav
United Nations Principles for Sustainable
Insurance (UN PSI), Partnership for Carbon
Accounting Financials (PCAF)
Corporate website
Sustainable Investment Policy
The Triglav Group (except for
the clients' assets managed in
mutual funds and discretionary
mandate assets, which are
managed by the Group's asset
management companies)
Management
Board of
Zavarovalnica
Triglav
SFDR, United Nations Principles for Responsible
Investment (UN PRI)
Corporate website
Succession Policy for Management
Members of Triglav Group Companies
▪
Acquisition and retention of high-quality staff
▪
Succession planning
▪
Ensuring a positive working environment
▪
Commitment to employee engagement, satisfaction and
health
▪
Promotion of knowledge transfer at Group level
▪
Creation of a uniform organisational culture
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Policy on the Management of Key
High-Potential and Young High-
Potential Employees
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Employee Development and Care
Policy
Zavarovalnica Triglav
Business
function
Internal – the internal
documents module on
the intranet
Rules on the Protection of Workers'
Dignity
Zavarovalnica Triglav
Business
function
Internal – the internal
documents module on
the intranet
Rules on Specialised In-House Training
in the Triglav Group
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Triglav Group Code
▪
The Triglav Group's ethical principles guide actions to uphold
its reputation, build trust in the brand, and ensure successful,
profitable and sustainable operations in line with its
objectives, mission, vision and strategy.
▪
They establish uniform corporate business and ethical
standards, complementing the standards of conduct followed
by all employees.
▪
Everyone acting on behalf and for the account of the Group
companies is committed to adhering to these principles. They
serve as a guide for addressing workplace challenges, making
responsible decisions and navigating ethical dilemmas.
▪
They provide direction for drafting internal regulations within
Group companies, ensuring compliance with the provisions of
the Code.
Triglav Group
Management
Board of
Zavarovalnica
Triglav
UN Universal Declaration of Human Rights, ILO
Declaration on Fundamental Principles and
Rights at Work, Commitment to Respect Human
Rights in Business, National Action Plan of the
Republic of Slovenia on Business and Human
Rights, Slovenian Corporate Governance Code,
Slovenian Corporate Integrity Guidelines,
Insurance Code
Rules on the Handling of Internal
Fraud and Violations of the Triglav
Group Code
Zavarovalnica Triglav
Business
function
Commitment to Respect Human Rights in
Business, Directive (EU) 2019/1937
Internal – the internal
documents module on
the intranet
Corruption Risk Management Policy
Triglav Group
Management
Board of
Zavarovalnica
Triglav
United Nations Global Compact Slovenia
Declaration on Fair Business
Slovenian Corporate Integrity Guidelines
Internal – the internal
documents module on
the intranet
133
Compliance Policy
▪
Consideration, identification, reporting and investigation of
unfair practices
▪
Measures to protect whistleblowers from retaliation and to
provide immediate assistance
▪
Protection of the whistleblower's identity
▪
It defines the key elements of the corruption risk
management system designed to effectively prevent and
detect corrupt practices and establishes the procedure for
reporting and handling cases that may pose a corruption risk
and requires employees to take an active role.
▪
It sets out written rules, procedures and standards for
organising the Compliance Office.
▪
Reporting and supervision lines
▪
Organisation of the compliance function, Compliance and
Sustainable Development Committee
▪
Education, information and training
▪
Consistency in taking action for non-compliant behaviour
▪
Determining the effectiveness of the compliance system
▪
Management of compliance risks
ZZavar-1, Commission Delegated Regulation
(EU) 2015/35 supplementing Directive
2009/138/EC (Solvency II), EIOPA Guidelines on
System of Governance
Diversity policy
▪
Prohibition of discrimination based on race and ethnic origin,
colour, gender, sexual orientation, gender identity, disability,
age, religion, political opinion, or national or social origin
▪
Recognising, preventing and eliminating the consequences of
discrimination, sexual and other harassment and workplace
mobbing
▪
Ensuring diversity
▪
Gender representation
Triglav Group
Management
Board
Internal – the internal
documents module on
the intranet
Rules on the Implementation of
Prevention Activities and the
Allocation of Funds for Prevention
▪
General principles and guidelines for the development of
prevention activities
▪
Purpose and conditions for the use of funds allocated to
preventive measures
▪
Conditions, methods and procedures for managing
sponsorship and donor partnerships
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Guidelines on Sponsorship and
Donation Management
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Regulations on Sponsorship and Donor
Partnerships
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Rules on Sponsorship and Donor
Partnerships
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Triglav Group Communication Code
▪
Fundamental principles for effective and balanced
communication
▪
Positioning of the communication function, responsibilities
for communication
▪
Communicating in a crisis
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Policy on Insurance Product
Governance, Oversight and
Distribution at Zavarovalnica Triglav
▪
Consumer protection
▪
Identification and tracking of the needs of the target market
Zavarovalnica Triglav
Management
Board, person
responsible
for
distribution
Directive (EU) 2016/97, Commission Delegated
Regulation (EU) 2017/2358 supplementing
Directive (EU) 2016/97, Commission Delegated
Regulation (EU) 2017/2359 supplementing
Directive (EU) 2016/97, Commission Delegated