TRIGLAV Group, FY2023: positive balance despite the record high CAT claims and inflationary pressure

6 March 2024 — Daniela GHETU

Triglav Group's total business volume rose by 12% to EUR 1,78 billion in 2023, while its earnings before tax amounted to EUR 21.1 million, the unaudited data released by the Group show. The regulated price of supplemental health insurance in Slovenia and record high CAT claims impacted the Group's earnings.

Due to above mentioned circumstances and inflationary pressures affecting claims and expenses, the combined ratio of Non-Life and Health segments increased to 101.6%. The Triglav Group maintained its capital strength and stability, which was confirmed by the re-affirmed high "A" credit ratings with a stable medium-term outlook.

In 2024, the Group anticipates that business conditions will return to normal and plans a total business volume (taking into account the impact of the discontinuation of supplemental health insurance) of around EUR 1.6 billion, earnings before tax of EUR 100–120 million and a combined ratio of Non-Life and Health segments of around 95%.

Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: "Last year was a very challenging year. Natural disasters have resulted in an increased need for support to our policyholders and have led to record high claims for the Group. In addition to the aforementioned factors and claims inflation, the government regulation of the price of supplemental health insurance in Slovenia had a significant impact on our results. We will no longer offer these insurance products in 2024. However, we will continue to develop and sell complementary health insurance products in the markets of the Adria region, as we believe they have significant long-term potential. Based on the changed business environment, we published a mid-year estimate of the planned annual earnings for the year and the result achieved is in line with this estimate. Over the last year we have demonstrated our flexibility and resilience, which is bolstered by our robust business model. We maintained our financial strength and a leading market position in the region, while increasing our business volume and operating with profit."

The Triglav Group is financially stable and adequately liquid with a strong capital base, the Group’s release read. According to unaudited data, its balance sheet total as at 31 December 2023 stood at EUR 4,099.0 million (index 108) and its total equity amounted to EUR 891.1 million (index 99). Return on equity was 1.8% (2022: –0.7% under IFRS 17), reflecting lower net earnings.

The Group's total business volume grew by 12% to EUR 1,780.2 million, with the same growth rate being recorded by gross written premium, which accounted for 93% of total business volume. In Slovenia, where 63% of the Group's premium is collected, premium growth stood at 9%, aligning with market trends. In the other markets of the Adria region, its increase stood at 7%, while in the international market, where the Group primarily operates under the principle of free movement of services and conducts active reinsurance business, growth reached 28%.

According to unaudited data, the Group's earnings before tax in 2023 amounted to EUR 21.1 million (2022: EUR –10.0 million under IFRS 17), in more detail:

Insurance operating result amounted to EUR –9.4 million (2022: EUR –12.6 million under IFRS 17). The Group achieved a good result of EUR 16.7 million in the Life and Pension segment, while the Non-Life segment's result was EUR 0.8 million and the Health segment's result was EUR –26.8 million. Insurance revenue increased by 12% to EUR 1,351.2 million, claims incurred by 33% to EUR 1,021.2 million and expenses by 12% to EUR 363.0 million.

Last year's operations were significantly affected by natural disasters, which caused CAT claims estimated at EUR 212 million gross at Group level. According to the Group's estimates, hailstorms and strong wind in Slovenia resulted in EUR 86 million in gross claims at Group level, while the August storms with floods caused EUR 77 million in gross claims. Most of the Group's other markets were also affected by natural disasters, with the largest claims recorded in Croatia (EUR 14 million) and Serbia (EUR 8 million). Estimated reinsurance CAT claims amounted to EUR 27 million.
 

Read the full Triglav Group’s statement on the 2023 results.
 

 

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