Business News

Triglav Raises Profit Despite Drop in Premiums

Ljubljana, 31 August (STA) - The group around Zavarovalnica Triglav, Slovenia's no. 1 insurance company, posted a net profit of EUR 17.9m for the first half of the year, up 55% over the year before, on the back of a a marginal drop in premiums which was offset with lower payouts.

Gross insurance and reinsurance premiums rose 2% year-on-year to EUR 557.1m. Net insurance premium revenue meanwhile dropped 1% to EUR 467.4m. Net payouts amounted to 287.3m, down 7%.

The core company Zavarovalnica Triglav recorded EUR 410m in gross premiums and a net profit increase of 17% to EUR 25.3m.

The company said in a statement the result had been achieved with a clear risk management policy, conservative investment policy and appropriate reinsurance.

Zavarovalnica Triglav chairman Matjaz Rakovec presented to the press today the group's strategy until 2013, which was confirmed by the supervisory board in June.

He highlighted profitable and safe operations, a focus on the insurer's core business and setting up a successful corporate management system.

"SE Europe remains the key market for Zavarovalnica Triglav," he stressed.

The insurer is present in Croatia, the Czech Republic, Montenegro, Bosnia-Herzegovina, Serbia and Macedonia. It is opening an office in Slovakia on 1 September, while it recently wrapped up the acquisition of a small insurer in Albania. Further acquisitions are currently not planned.

Rakovec moreover announced that in approximately a year all Zavarovalnica Triglav subsidiaries in the Balkans would be merged under the wing of a new company, named Triglav International. The company is already being set up and will probably also see the participation of the EBRD with a minority stake.

The strategy envisages a 10% return on capital rate for the group by 2013, EUR 1.1bn in premiums revenue and a reduction of the current 5,200-strong workforce to 5,000.

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