Triglav Group Q1 gross profit expanded by 20% to EUR 38.1 m

24 May 2022 — Andrei Victor
Slovenian insurance group Triglav reported Q 2022 aggregate revenue worth EUR 442.9 million, up by 12% y-o-y, while the volume of gross written premium increased by 10% to EUR 407.1 million year-on-year. At the same time, consolidated profit before tax totaled EUR 38.1 million, 20% more than in the same period last year.

"The Group's prudent underwriting discipline resulted in premium growth in all three insurance segments: by 11% in non-life insurance, by 9% in life and pension insurance, and by 3% in health insurance", as Triglav representatives mentioned in a statement.

Premium growth was recorded in all insurance markets; in Slovenia it was 5%, which corresponds to the market growth rate, and outside of Slovenia in the markets of the Adria region it reached 13%. The premium volume in international markets, which includes premium written based on the principle of free movement of services and inward reinsurance premium, rose by 30% year-on-year.

Premium growth affected the volume of claims, which increased by 15% and amounted to EUR 196.7 million. "Claims experience was also influenced by last year's restrictions due to the pandemic and higher prices of materials and services. There were almost no major CAT events in the first quarter of 2022".

The combined ratio in non-life and health insurance reached a favorable 87.3% as a result of the improved claims ratio due to higher net premium income and the effect of managing insurance technical provisions.

Compared to the first quarter of 2021, the Triglav Group increased its profit before tax by 20% to EUR 38.1 million. The majority of the profit, i.e. EUR 30.6 million, stems from underwriting activities, an increase of 16% relative to the corresponding period last year. Profit from financial investments declined by 87% to EUR 0.5 million, whereas the profit of the Group's non-insurance companies grew to EUR 7.0 million (compared to EUR 1.6 million in Q1 2021).

"Although the COVID-19 pandemic, which has affected the Triglav Group's operations for the past two years, is easing, our business environment remains challenging. It has been also shaped by the broader consequences of the war in Ukraine and the sanctions imposed against Russia and Belarus, with which we are fully and consistently complying. In this regard, our exposure to the situation is assessed as limited and low. Despite the challenging situation, we performed well in the first quarter of this year, thanks to the team of over 5,200 employees of the Triglav Group. We achieved sound results in underwriting activities and the management of own assets, while financial investment portfolio returns were negative as expected given the situation. Taking into account the business conditions anticipated until the end of the year, we estimate that we will achieve our planned annual profit before tax", said Andrej SLAPAR, President of the Management Board of Zavarovalnica Triglav.

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