The share of expenses in written premium dropped by 0.5 percentage point to 24.8% compared to the preceding year. Returns on investments (excluding return on unit-linked life insurance) declined by 4% compared to 2016. The decrease was lower than expected, with some impact resulting from specific one-off events such as realized capital gains. The return on equity (ROE) of the Group was 9.3%.
Total written premium reached EUR 1 billion. For the third consecutive year, the TRIGLAV Group recorded premium growth; in 2017 it was as much as 7%. In the reporting period, the TRIGLAV Group recorded a total of EUR 1 billion in consolidated gross insurance, co-insurance and reinsurance premiums (planned at approximately EUR 930 million). Premium growth was recorded in all three insurance segments.
According to a Group's press release, the average market growth in Slovenia was 6% and on other markets of the Adria region it stood at 10%. In accordance with its strategic guidelines of growth and development, the TRIGLAV Group increased the share of premium written in the markets outside of Slovenia by 0.4 percentage point to 17.7%. The deterioration of the claims ratio was mitigated with the improved expense ratio, resulting in the favorable combined ratio of 93.9%.
Andrej SLAPAR, President of the Management Board of Zavarovalnica TRIGLAV: "In 2017, we consistently implemented our strategy and achieved good business results. In line with the dividend policy, the Management Board and the Supervisory Board of the Company will propose to this year's General Meeting of Shareholders to pay out a dividend in the amount of EUR 2,50 gross per share. The aim of the new dividend policy is to realize the following three objectives in a balanced way: to achieve medium-term sustainable target capital adequacy of the Group, 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 the shareholders."
Both renowned credit rating agencies, S&P Global Ratings and A.M. Best, which assess the TRIGLAV Group, again assigned the Group the high "A" credit ratings with a stable medium-term outlook in 2017. The TRIGLAV Group firmly remains the leader in the Adria region (a 20% share), in addition to maintaining the leading position in Slovenia, its largest market (a 36% share). In 2017, the Group improved its position on the Croatian and Serbian markets, while on other markets it largely maintained its position or market share from the year before.
Development highlights in 2017 in terms of the strategy up to 2020.
In its Strategy for the 2017-2020 period, the TRIGLAV Group has set out on a path to become a modern, innovative and dynamic insurance/financial group, firmly remaining the leader both in Slovenia and the wider region. Clients are in the very center of all its activities. In the first strategy year, the Group actively pursued its strategic guidelines. The Group provided new and improved products to their clients, upgraded them with assistance services, strengthened alternative sales channels, such as selling via banks, leasing companies and travel agencies, online and mobile selling, as well as developed technological and process improvements with regard to claim settlement. At the Group level, large-scale activities were launched to establish an advanced, computerized and innovative business environment in the Group. In relation to development activities, the TRIGLAV Group cooperates with startups and accelerators and introduces new forms of partnership.
The Annual Report has been published in a digital form as an interactive PDF document on the website www.TRIGLAV.eu, in English.