TRIGLAV Group, 3Q2018: annual profit guidance confirmed following the positive trend recorded in the first nine months

In 3Q2018, the Slovene TRIGLAV Group posted a profit before tax of EUR 69.9 million, 8% more y-o-y, mostly thanks to the profitable underwriting. Considering the business conditions anticipated until the year end, the Group confirms its annual profit guidance.

Premium growth in all markets and segments. The Group's consolidated gross written premium totaled EUR 820.2 million, up 6% compared to the respective period of 2017. Premium growth was recorded in all markets where the Group operates. The average premium growth in the Slovene market was 5% and in the markets outside of Slovenia it stood at 8%. The share of premium written in the markets outside of Slovenia further increased by 0.5 percentage point to 18.3%. In terms of individual insurance segments, a 6% premium growth in the non-life insurance segment was seen, a 1% growth in life insurance and a 10% growth in health insurance.

Favorable combined ratio. Compared to the corresponding period last year, net claims incurred went up (index 101), however their growth noticeably lagged behind net premium income growth (index 106). This was reflected in the improved combined ratio of TRIGLAV Group, which was favorable at 92.4% (94.5% y-o-y).

A lower return on financial investments. As at the reporting date, the Group's financial investments totaled EUR 3.1 billion; they are well dispersed and mostly invested in the euro area in line with the investment policy. Return on investments (excluding unit-linked life insurance contract investments) dropped by 19% compared to the respective period of 2017, which is expected due to the last year's one-off events and the continued low interest rate environment.

Andrej SLAPAR, President of the Management Board of Zavarovalnica TRIGLAV, said: "We are pleased with the performance in the first nine months of 2018. Taking into account the business conditions anticipated until the end of the year, we confirm our annual profit guidance. TRIGLAV Group is financially sound, operating profitably and safely. With a team of over 5,100 employees, we are consistently implementing the set development activities. Again, this year, this is further confirmed by the "A" credit rating with a stable medium-term outlook, which was assigned by the credit rating agency S&P Global Ratings."

Takeover activities in the context of the growth and development strategy. TRIGLAV Group develops and grows organically, however potential takeovers are not excluded should an appropriate opportunity present itself. In 2018, the Group signed agreements to acquire Raiffeisen Mirovinsko osiguravajuce drustvo in the Croatian pension insurance market, the Slovene asset management company ALTA Skladi and acquired the remaining 28.1% stake in Skupna pokojninska druzba, which operates in the Slovene supplemental voluntary pension insurance market.

Read the Unaudited Interim Report of the Triglav Group and Zavarovalnica Triglav d.d. for the period from 1 January 2018 to 30 September 2018  on the Group's web page, in the Investor Relations section.




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