The TRIGLAV Group exits the Czech insurance market and focuses on strengthening its operations in the South-East Europe target markets

20 October 2014 — Daniela GHETU
TRIGLAV Group exits the Czech market by selling its local subsidiary TRIGLAV pojistovna, Brno to VIGO Finance, part of VIGO Investments Group. The sale is expected to be completed by May 2015. The decision on the sale is in line with the TRIGLAV Group Strategy, focused on increasing the value of the Group and effectively managing the TRIGLAV Group's subsidiaries. Zavarovalnica TRIGLAV estimates that the sale of the subsidiary will have no major impact on the Group's performance.

In the previous period, Zavarovalnica TRIGLAV assessed its continued presence on the Czech market in terms of the significance of that market for the TRIGLAV Group and for the achievement of its strategic objectives on that market. The decision to sell TRIGLAV pojistovna, Brno was made on the basis of a careful assessment and by taking into account the TRIGLAV Group Strategy, which clearly defines the target profitability and expected market shares, places focus of the Group's operations on the core insurance business and requires effective management of all subsidiaries within the TRIGLAV Group.

"In line with the revised strategy until 2017, the TRIGLAV Group focuses its operations on the South-East Europe target markets, where further growth and development are planned. The opportunities provided by individual insurance markets in this region will be taken into account and the possibilities examined for continued market share growth, both organically and through potential takeovers of selected competitors. The Group will continue to consistently implement its business optimisation activities, to work towards greater homogeneity of the Group and to actively seek to increase its value," explained Andrej Slapar, President of the Management Board of Zavarovalnica TRIGLAV.

TRIGLAV pojistovna, Brno is a small non-life insurance company in the Czech Republic, fully owned by the holding company TRIGLAV INT (which is fully owned by Zavarovalnica TRIGLAV), and is one of the current nine insurance or reinsurance subsidiaries of the TRIGLAV Group. The said company's share in the capital and total assets of the TRIGLAV Group amounts to less than 1.5%. As at 30 June 2014, TRIGLAV pojistovna reached 1.1% market share and ranked 11th among the non-life insurance companies in the Czech insurance market. Last year, the gross written premiums in the Czech Republic accounted for 3.3% of the TRIGLAV Group's total gross written premiums. Zavarovalnica TRIGLAV estimates that the sale of TRIGLAV pojistovna, Brno, will have no major impact on the Group's performance.

"The Czech insurance market is well developed and very competitive, as 29 insurance companies operated in the market in 2013. By selling the Czech subsidiary, the Company pursues its guidelines to consolidate its operations, while maintaining its focus on South-East Europe. Our goal is to achieve at least a 10% market share in individual target markets of the region in the period until 2017. By taking into account our strategy, the sale of the subsidiary is a reasonable step towards further strengthening of the Group's role in its key markets," added Benjamin Josar, Member of the Management Board of Zavarovalnica TRIGLAV and President of the Management Board of TRIGLAV INT.