The Unit-linked insurance lines once again pushed the life insurance GWP figure down. With this line of business recording a 5% fall in GWP, the total premium written by the life insurers decreased by 3.26% y-o-y, to EUR 283 million. However, as compared with the end of the first quarter, it seems that the negative trend on the life insurance side is slowing down at a certain extend. It is also noteworthy the 35% decrease in paid claims for UL policies, which seems to indicate a calming in the policy surrenders.
The constant business volume on the non-life insurance side resulted due to the almost 12% growth recorded for the health insurance line which succeeded to offset the 7% downsize witnessed on the motor lines, as well as the negative trend recorded on most of the other non-life classes. On a highly competitive market, the continuous prices softening put the business volume under a strong strain.
The changing landscape
The market leader TRIGLAV will be confronted with a stronger competitor resulting from the Zavarovalnica MARIBOR's sale to the SAVA Re Group, an operation which ended in early 2013. According to SAVA Re's representatives, the acquisition will result in creating the second largest insurance group in the Western Balkans. For the time being, the interim report of SAVA Re shows that, although the MARIBOR results were consolidated with the SAVA Re's Group for only 2 months, the takeover already determined a substantial growth of the group's GWP and profit, to EUR 190 million (19.9% up y-o-y) and EUR 19.2 million respectively.
On the other hand, TRIGLAV has officially announced its intention of participating to the CROATIA Osiguranje privatization process. If successful, this bid could push the Slovene group in a stronger regional position. However, it should not be forgotten that TRIGLAV itself could be offered "for sale" by the Slovene government in the next months.
The full market analysis article was published in XPRIMM Insurance Report - CEE, Russia&CIS, SE 1H2013. See how you can get a copy.
Access www.xprimm.com and download the 1H2013 Slovenian insurance market statistics.
- Gross written premiums
- Paid claims
- Growth rates
- Total market ranking
- Life insurance ranking
- Non-life insurance ranking