The Triglav Group ended the reporting period with profit before tax of EUR 64.5 million. Taking into account the business conditions anticipated by the end of the year, the Company estimates that the annual plan will be achieved. The Group's consolidated gross written premium totalled EUR 777.1 million, up 8% compared to the respective period of 2016. Gross claims paid totalled EUR 467.4 million (a 5% growth compared to 2016), as the result of the increase in the insurance portfolio and claim frequency as well as the higher number of mass loss events compared to the year before. The combined ratio of the Group remains favourable at 95.3% and at the level of its average target strategic value. In the challenging conditions on capital markets, the Group effectively managed its financial investments totalling EUR 3.1 billion in accordance with its relatively conservative investment policy.

Profitable operations

The Triglav Group ended Q1-3 2017 with a profit before tax of EUR 64.5 million (EUR 67.5 million in 2016) and generated a net profit of EUR 52.3 million (EUR 53.6 million in 2016).

Premium growth recorded in all insurance markets and all three insurance segments

Compared to the respective period of 2016, the premium growth of 8% was recorded at the Group level (EUR 777.1 million). The Group recorded premium growth in all three insurance segments. Both non-life insurance premium and life insurance premium increased, by 8% and 3% respectively, whilst health insurance premium saw an increase of 14%. Premium growth was recorded in all insurance markets in which the Group operates. The average growth on the Slovene market was 7% and on the markets outside of Slovenia it stood at 11%. In 2017, the situation on insurance markets has been gradually improving, but the Group is still faced with challenging conditions marked by aggressive price competition.

Increased loss developments, favourable combined ratio

Gross claims paid increased by 5% (EUR 467.4 million) as the result of the increase in the insurance portfolio and claim frequency as well as the higher number of mass loss events. The latter increased over 2016; in the first nine months of 2017, they amounted to EUR 25 million (EUR 19 million in 2016). The Group's combined ratio of 95.3% (2016: 95.0%) was favourable despite the increase in the claims ratio and at the level of its average target strategic value.

Returns on financial investments

As at the reporting date, the Group's financial investments totalled EUR 3.1 billion. They are effectively managed despite the low interest rate environment, due to which lower interest income was realised compared to the corresponding period last year. In terms of value, returns on financial investments remained at the 2016 level mainly due to higher gains on the sale of financial investments.

'A' credit rating affirmation

In 2017, both credit rating agencies, i.e. S&P Global Ratings and A.M. Best, assigned the Triglav Group the same high 'A' credit ratings as last year with a stable medium-term outlook. The credit ratings reflect consistently strong operating performance over the past years, the dominant market position and financial soundness of the Group, as well as adequate reinsurance protection and risk management.

Andrej Slapar,President of the Management Board of Zavarovalnica Triglav, said: 'In the first nine months of 2017, the Group not only operated profitably and safely but was also financially strong, as confirmed by high credit ratings. The challenging conditions in capital markets have continued, in addition to an increased number of mass loss events recorded this year.Taking into account the business conditions anticipated until the end of the year, we estimate that the results will be within the planned range. In 2017, we have continued with the existing or have been implementing new activities aimed at achieving the 2017-2020 strategic guidelines. Clients are in the very centre of our activities. Our products, services and sales channels are being tailored and developed to their needs and the specificities of individual markets. In our markets, we invest in those insurance segments where the highest growth rates are expected. To this end, this year we have entered the voluntary pension insurance market in Bosnia and Herzegovina and the Macedonian life insurance market. I believe that the commitment and energy of the Triglav Group's team are the guarantee that we will achieve our set objectives.'

Zavarovalnica Triglav dd published this content on 17 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 November 2017 16:37:03 UTC.

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