XPRIMM: Which were the most important changes/trends, both in the Slovak economy and insurance industry in 2013?
Ivan PODSTUPKA: The Eurozone's macroeconomic environment was stabilised in 2013, a trend reflected by the Slovakian economy as well. The pace of GDP growth in constant prices was 0.8 % according to the Natinal Bank of Slovakia. Although the pace was slower than in other years, we have observed a good development of a number of quantitative attributes - the private demand was revived, the industrial production grew and standard investment demand was established.

Technical insurance reached EUR 2.17 billion, which represents an annual increase of 2.6%. A year before the market grew by only 0.2% showing a rather stagnant trend. The technical life issurance has risen by 5.3%, developing more dynamically than in previous years, e.g. in 2012 when the annual growth was of 1.76%. The non-life insurance stagnated as a year before that, showing a minor decline of -1.5 %, respectively 1.64%.

XPRIMM: How would you characterize the local insurance market's evolution in 2013?
I. P.: Neither qualitative nor quantitative changes on the insurance market can be considered major. Compared to the last year, the standard life assurance was growing as well as new production, while the unit-linked insurance has stagnated. The number of repurchases declined, but there was growth in its volume. The non-life insurance business declined by 3.4% despite the growth number or registered vehicles because of the lower cost of insurance per contract. As a result, the combined ratio increased by 5 percentage points, to 85.4 %. On the property insurance side, GWP went up by 1%.

XPRIMM: Are there any major changes to be made in the near future that will target the insurance industry?
I. P.: We don't expect such changes of legislature that could have impact on the Slovak insurance market. The persisting low rates of interest, however, exerts a risk worth mentioning. The commercial insurance companies will enter the market with annuities from 2nd pillar of pension fund in 2015, but the insurance companies are already getting ready for it this year.

XPRIMM: What are your expectations for the end of 2014?
I. P.: We assume there is continuity to trends from last year. No substantial changes are expected.