TRIGLAV, FY2019: consolidated profit before tax exceeded EUR 100 million

3 March 2020 — press.release
During 2019, Triglav Group (TRIGLAV) generated a profit before tax of EUR 101 million, 4% more year-on-year. The insurer recorded premium growth across all insurance markets and all insurance segments; the consolidated gross premiums volume reached EUR 1,184 million, which is 11% more than the year before.

Triglav Group FY2019 figures, unaudited, y-o-y changes

  • Gross written premiums: EUR 1,184 million (+11%), of which:
    • GWP Slovenia: EUR 901 million (+10%)
    • GWP Croatia: EUR 66 million (+14%)
    • GWP Serbia: EUR 58 million (+19%)
    • GWP Montenegro: EUR 37 million (+11%)
    • GWP BiH: EUR 30 million (+9%)
    • GWP N. Macedonia: EUR 24 million (+1%)
    • GWP Int. reinsurance: EUR 69 million (+21%)
  • Net premium income: EUR 1,028 million (+8%)
  • Gross claims paid: EUR 717 million (+5%)
  • Net claims incurred: EUR 684 million (+9%)
  • Gross operating expenses: EUR 305 million (+6%)
  • Combined ratio: 91.5% (-0.3 pp.)
  • Return on equity: 10.9% (+0.1 pp.)
  • Profit before tax: EUR 101 million (+4%)
  • Net profit: EUR 84 million (+4%)

According to unaudited data of the year 2019, Triglav Group generated profit before tax of EUR 100.9 million (+4%) and EUR 83.9 million of net profit (+4%). TRIGLAV's profit before tax from the underwriting activities remained at the level of the previous year and amounted to EUR 71.8 million. Profit before tax from financial investments of the insurance business grew by 35% to EUR 29.0 million. Its increase resulted from one-off events, whereas interest income continued to decline in 2019 due to financial market conditions. The group's return on equity rose to 10.9% (FY2018: 10.8%).

The management of EUR 3.3 billion large investment portfolio was in line with a relatively conservative investment policy. Its composition did not change significantly, but certain adjustments were made within individual investment grades, which increased the maturity of the portfolio, further improved its quality and achieved an even better matching of assets and liabilities. In view of the situation on the capital markets, TRIGLAV slightly reduced its exposure to market risks in 2019, while prudently increasing its underwriting risks.

For the fifth consecutive year, TRIGLAV achieved premium growth backed by continued underwriting discipline. Total written premium in 2019 stood at EUR 1,184.2 million, an increase of 11% relative to the previous year. Premium growth was recorded in all three insurance segments. Non-life insurance premium increased by 10%, health insurance premium by 23%, and life and pension insurance premiums by 4%.

TRIGLAV continued to strategically diversify premium in terms of products/services and geographical areas. In its composition, the share of health insurance increased by 1.4 percentage point to 14.9%, the share of non-life insurance stood at 65.5%, while the share of life and pension insurance was 19.6%.

TRIGLAV again increased the share of premium written on markets outside Slovenia, which stood at 18.1% at the end of the year, while premium growth was recorded on all markets of the group. The average premium growth on the Slovene market was 10% (market growth was 8%) and on markets outside Slovenia it stood at 12%. International reinsurance premium increased by 21%.

The performance of the claims segment was as expected, while the volume of claims as a result of major CAT events was lower than the year before. TRIGLAV's gross claims paid were 5% higher (EUR 716.7 million) as a result of increased business volume in the past few years. The estimated value of the group's mass claims was EUR 16.5 million (compared to EUR 23.3 million in 2018), half of which was caused by summer hail storms in Slovenia.

TRIGLAV's combined ratio, standing at 91.5% (compared to 91.8% in 2018), improved primarily as a result of the improved expense ratio or the higher growth of net premium income than the growth of operating expenses. The combined ratio is in the favorable lower end of the range of its average target strategic value of around 95%.

TRIGLAV increased the volume of clients' assets managed in mutual funds by 68% to EUR 1.0 billion and discretionary mandate assets by 65% to EUR 82.5 million in 2019. The high increase allowed the group to develop this activity more ambitiously, and it was influenced primarily by the acquisition of ALTA Skladi, the situation on the capital markets and net inflows. With a 34% market share, TRIGLAV holds a leading position among Slovene mutual fund managers (compared to 24.6% in 2018).

TRIGLAV effectively reduced the proportion of insurance business operating expenses in gross written premium by 1.3 percentage point to 23.2% in 2019. The Group's gross operating expenses in the amount of EUR 305.3 million were 6% higher than in the previous year, mainly as a result of increased acquisition costs due to high premium growth and the implementation of strategic development activities.

The Group's high level of financial stability was reflected in total equity (EUR 792.0 million) and gross insurance technical provisions (EUR 2,878.9 million). Both categories increased in 2019 by 6%. As part of its regular activities in 2019, the Company successfully issued a 30.5-year subordinated bond, replacing the subordinated bond that expires in 2020. The Group was assigned high "A" credit ratings with a stable medium-term outlook by the credit rating agencies S&P Global Ratings and AM Best.

Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said:

"The year 2019 was successful; according to unaudited data, we have achieved a 4% higher profit before tax than the previous year and strengthened our market position in the region. The favourable results were driven by growth in business volume, underwriting discipline and higher rates of return on investment. (...) I would like to thank all the employees and partners for their contribution to our good business results and for their participation in many strategic and development activities that mark the Company's 120 years in business. Together, we have successfully combined tradition and the future, which is without a doubt one of the best ways to build a safer future for all our stakeholders."

More financial information about Triglav Group can be found at

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