Sound performance of the insurance business is reflected by the 91.3% combined ratio of non-life insurance in the reporting period. As at 30 September 2019, assets under management in mutual funds and discretionary mandate assets of Triglav Group amounted to over EUR 1,050 million, up by 61% compared to the 2018 year-end, primarily resulting from the impact of this year's acquisition of ALTA Skladi. In 2019, the Group has continued to implement its development and growth strategy, which is focused on achieving long-term stable and profitable operations and increasing the value of the Group.
"We are satisfied with our performance and the results achieved in the first nine months of 2019. We operate in very challenging conditions in the financial markets; however, the underwriting discipline and the growing volume of business enable us to effectively achieve the set objectives. Taking into account the business conditions anticipated until the end of the year, we confirm our annual profit guidance," commented Andrej SLAPAR, President of the Management Board of Zavarovalnica Triglav, the Group's parent company.
The Group booked EUR 905.5 million of consolidated GWP in the first nine months of 2019, 10% up y-o-y. Premium growth was recorded in all three insurance segments and in most markets of the Group. Effective sales campaigns, increased sales activities and acquisition of new policyholders resulted in the growth of all insurance groups in the non-life insurance segment; total premium of this segment was 11% higher y-o-y. The health insurance premium was up by 22% as a result of the increased number of insurance policies taken out and the average premium increase. Life and pension insurance premiums grew by 2%, mainly due to higher payments of traditional life and pension insurance products and their sale through bank sales channels. In the reporting period, a relatively favourable claims experience was seen, with gross claims paid amounting to EUR 505.5 million (index 102). The combined ratio of the Group was favourable at 91.3%, which is the result of an improved claims ratio and maintaining a stable expense ratio.
In 3Q2019, Triglav Group posted a consolidated profit before tax of EUR 72.0 million or 3% more than in the same period last year. This predominantly resulted from the underwriting discipline and the higher volume of business. Profit arising from the insurance technical part amounted to EUR 54.7 million and was 13% higher compared to the respective period of 2018. The profit from return on financial investments of the insurance business, which amounted to EUR 14.9 million, dropped compared to the year before (index 76), because it was affected by the negative interest rate environment, which continues to reduce net interest income. As a result of the further decrease in interest rates in 2019, the Group formed appropriate provisions. The profit from the non-insurance part of the Group's business, which includes the results of both asset management companies, amounted to EUR 2.4 million (index 144).
As at the reporting date, the Group's financial investments totalled EUR 3.3 billion (index 106). The bulk of the portfolio, i.e. 73.1%, continued to be accounted for by debt securities, which are mostly invested in the euro area.
Triglav Group managed assets worth over EUR 1,050 million, of which EUR 976 million in mutual funds and EUR 78 million in discretionary mandate assets. The total assets of the Group's clients are 61% higher than at the 2018 year-end, largely due to the impact of this year's acquisition of ALTA Skladi. Triglav Group holds a leading position in the Slovene mutual fund management market (a 34% market share).