TRIGLAV published the Coronavirus impact on FY2020 planned figures

27 April 2020 — Andrei Victor
TRIGLAV Group informed in a statement its expectations regarding the impact of the pandemic on Group's performance in 2020. Thus, compared to the published business plan for 2020 in December 2019 - profit before tax of EUR 95 million - EUR 105 million and GWP of around EUR 1.2 billion, the most recent scenario published by the company as a result of Coronavirus pandemic indicates a decline in Group FY2020 profit of 10%-25%, while in case of GWP the forecast indicate a decrease of 3-5%.

At the same time, the Slovene insurer mentioned it is estimated that primarily the written premium and claims result of the non-life insurance segment will be affected, as follows: the volume of motor vehicle insurance premium (MoD and MTPL) is expected to fall mainly as a result of lower sales of new vehicles, deregistration of existing vehicles and smaller coverage. Other scenarios also accounted for lower sales due to obstacles to taking out such insurance policies. More than that, as a result of lower economic activity, a decrease in life insurance premium and premium written in real property insurance, credit insurance and general liability insurance is expected, in addition to lower demand for travel insurance.

"Due to the impact of unearned premium, the expected decline in net premium income will be lower than the decrease in gross written premium. In parallel, lower net claims incurred are anticipated for some insurance classes due to reduced economic activity and movement restrictions. As a consequence of the pandemic, the life insurance segment accounted for the probability of somewhat increased payouts due to death and an increase in early termination of life insurance policies", as the company mentioned in a statement.

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