Ljubljana, 13 November (STA) - Zavarovalnica Triglav, Slovenia's largest insurer, reported consolidated gross written premium of EUR 960.9 million for the first nine months of the year, a 6% year-on-year increase. Net profit declined by 14% to EUR 50.8 million, shows the interim report released on Friday.
The profit decline is principally the result of the situation in global financial markets, and partly a result of major events such as hailstorms in three markets, the Zagreb earthquake and an increase in provisions.
The volume of gross claims paid, at EUR 505 million, fluctuated by insurance group and insurance class, but in total it remained comparable to the corresponding period last year.
The situation in financial markets led to a decrease in interest income and thus lower rates of return on Triglav Group's EUR 3.4 billion investment portfolio. Interest income amounted to EUR 41.5, down 38%.
Both total consolidated gross operating expenses (EUR 222.3 million) and insurance business expenses (EUR 199.3 million) remained level on the year before.
The combined ratio, an insurance industry benchmark, stood at 91.4%, which the company says is favourable.
"By being committed to underwriting discipline, cost optimisation and intensive sales activities, we increased the volume of our business in the first nine months. We are satisfied with the profit achieved," CEO Andrej Slapar was quoted as saying.
Despite the uncertainty, Triglav "stands by its already published annual profit estimates, while assessing that its insurance and investment portfolios are sufficiently resilient and that its capital position is appropriate to effectively cope with increased risks, as confirmed by the high credit ratings assigned this year," the report says.
Slapar said that the uncertain situation in the second half of 2020 "continues to prevent us from giving a reliable annual profit guidance, which was projected to be between EUR 95 million and 105 million. We stand by the already published assessment that annual profit will be 10-25% lower than planned."
"We assess that Triglav Group's insurance and investment portfolios are sufficiently resilient and that the capital position is appropriate to effectively cope with the increased risks."