STA, 20 August 2019 - The group around insurer Zavarovalnica Triglav reported on Tuesday a EUR 34.7 million net profit for the first half of 2019, a 16% year-on-year increase. Consolidated gross premiums were up 10% to EUR 630 million and net premium income by 6% to EUR 491.8 million.
Triglav said premium growth was recorded on most of the group's markets and at levels mostly above the growth of the whole market.
In Slovenia, where Triglav Group collects 76% of consolidated premiums, average premium growth stood at 8% (market growth was 7%), while it was 10% in the markets outside of Slovenia.
Premium growth was recorded in all three insurance segments; the non-life insurance segment grew by 10%, the health insurance segment by 21% and the life and pension insurance segment by less than 1%.
Gross claims paid by the group amounted to EUR 335 million, 2% more year-on-year, while major disaster events are estimated at EUR 4.9 million. The combined ratio of the group was at 93.2%, which Triglav said was a favourable value attributable mostly to the improved claims ratio.
The Triglav group posted a pre-tax profit of EUR 41.7 million in the first half of the year, or 17% more than in the same period last year. The company attributes this to the higher growth of net premiums earned compared to the growth of net claims incurred in non-life insurance and to the higher realised return on financial investments.
The group's investment portfolio is worth EUR 3.2 billion. Triglav says "investments are managed relatively conservatively and with the aim of maintaining a high overall credit rating".
Returns on financial investments, excluding unit-linked life insurance contract investments, totalled EUR 51.4 million in the first six months of 2019. Compared to 2018, returns on financial investments were higher mostly as a result of higher net gains on the sale of financial assets and higher net income from changes in the fair value, the company said.
On the other hand, net interest income continued to decrease due to the low interest rate environment. Due to a further reduction in interest rates, additional insurance technical provisions for life insurance were made in the amount of EUR 8.6 million as a result of the liability adequacy test.
On 30 June, the group, including its subsidiaries Triglav Skladi and ALTA Skladi (acquired in 2019), held a 34.3% and thereby leading share in the Slovenian mutual fund market.
As at the reporting date, the group managed net assets worth EUR 947.8 million in mutual funds or 12% more than at the 2018 year-end. Discretionary mandate assets equalled to EUR 73.7 million, a 47% increase (index 147).
Commenting on the results, chairman Andrej Slapar said the group, employing over 5,000 in the region, "maintains a strong position and pursues its growth and development strategy".
"We are pleased with the results achieved. Taking into account the business conditions anticipated until the end of the year, we confirm our annual profit guidance," the report quotes Slapar.