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Zavarovalnica Triglav

Annual Report • Apr 1, 2025

1989_rns_2025-04-01_e6a28a66-0722-40db-9c50-564fb53228e1.pdf

Annual Report

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Partners for a safer future

2

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

The unofficial version of the annual report

Triglav Group triglav.eu

Innovative tools for client financial resilience

Business report

Accounting report

Appendix

In a time of uncertain and increasingly interconnected risks, Triglav is evolving as a risk management partner for its clients. The Group aims to support them in making informed decisions that enhance their personal financial security and provide tools to strengthen their understanding of risk and financial resilience.

With the new functionality in the i.triglav digital office, clients can instantly assess their home's exposure to natural disasters. Meanwhile, the new Triglav Skladi mobile app allows them to simulate financial goal-setting before making an investment decision.

Clients can now easily check whether their insurance coverage aligns with the property's exposure rating to natural disasters, as explained by Sandra Škrlec Marter, content administrator of the i.triglav digital office, and Davor Krušvar, risk underwriter for fire and engineering insurance. Public data sources and the Triglav Group's risk maps are used to determine risk levels based on a three-tier scale. Clients can also verify the risk assessment with their agent. For more information on the i.triglav digital office, see Section 4.4 Development activities.

hail and lightning.

To protect one's home, it is important that the insurance policy covers the risks to which the property is most exposed and provides an appropriate level of cover. By displaying the property's risk exposure rating, clients can now instantly access information on the risk levels for floods, earthquakes,

Triglav Group in 2024

The leading insurance and financial group in the Adria region

5,204 Employees

EUR 4,538.3 million +11% Balance sheet total

EUR 159.0 million Earnings before tax (planed: EUR 130–150 million)

products promoting social and environmental benefits

Attractive and Sustainable Dividend Policy
4.3% dividend yield in 2024
Insurance Asset management
¡ Non-Life
¡ Life
¡ Health
¡ Reinsurance		 ¡
Own insurance portfolio
(asset backing liabilities and
backing funds)
¡
Mutual funds and individual
asset management
¡
Pension funds
The largest insurance group in
terms of written premium in
South-East Europe		 High quality and globally
diversified bond portfolio
EUR 97.5 million
Insurance operating result
(2023: EUR -7.1 million)		 EUR 49.0 million
Net investment result
(2023: EUR 22.2 million)
EUR 1,622.3 million –2%
Gross written premium		 5,893.8 million EUR +21%
Assets under management (AUM)
EUR 286.8 million +20%
3.0% +1.4 p.p.
Contractual service margin (CSM)
Return on financial investments
EUR 22.9 million –8%
Written premium from		 EUR 1,977.3 million +74%
Assets under management

in funds that incorporate sustainability aspects

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Zavarovanje doma lahko enostavno sklenete tudi preko spleta. Če imate zavarovanje za dom že sklenjeno in bi želeli prilagoditi kritja za posamezne nevarnosti ali je ocena tveganja za vašo nepremičnino kot »visoko tveganje« se obrnite na zavarovalnega zastopnika.

Strela Nizko tveganje

Accounting report

Appendix

Partners for financial security

The Triglav Group's strong performance significantly exceeded its 2024 targets, with all business segments contributing to profitability. Net earnings surpassed expectations, reaching EUR 131 million.

As the Triglav Group enters its 125th anniversary year and a new strategy period, it remains a successful financial and insurance group, a leader in the Adria region and a growing presence in international markets. Its processes are client-centric, with clients' needs driving opportunities for mutual growth.

Non-Life

In addition to modern insurance and asset management products, the Group offers complementary products for real property damage repair, assistance in the event of a traffic accident, medical and veterinary services, cybersecurity advice,

The Group supports its clients at every stage of life, providing up-to-date education and information. Personalised financial advice is offered, particularly in savings, investment and retirement planning.

More about the Triglav Group's business model4

road safety training and more.

Zavarovalnica Triglav and Triglav Skladi support and participate in the Financial Literacy for Youth project.

More about our financial awareness activities

In the photos: Summer Financial School for Teenagers, August 2024, Triglav Lab in Ljubljana, Časnik Finance archive.

Watch the video.

–31.4

Life Health Asset management

Strong performance across all segments of the Triglav Group We have strengthened our leading position in the Adria region and expanded our business in the region and beyond.

The Triglav Group enters the new 2025–2030 strategy period on solid footing, with ambitious goals. Its strategic ambitions focus on highly profitable operations, above-average growth in markets outside Slovenia, strong growth in business volume and assets under management, and an outstanding client experience. It is developing an agile and efficient organisation, fostering an environment that attracts top talent.

See Section 4. Triglav Group strategy and plans for further details.

The Triglav Group and Zavarovalnica Triglav d.d.

Audited Annual Report for the Year Ended 31 December 2024

About the report

The annual report in PDF format is its unofficial version. The annual report in ESEF format complies with the Commission Delegated Regulation (EU) 2019/815 and paragraph one of Article 134 of the Market in Financial Instruments Act (ZTFI-1) and is its official version published on SEOnet. The 2024 Sustainability Report has been prepared in accordance with CSRD and ESRS.

Contact for investors

Sustainable development policy of Zavarovalnica Triglav and the Triglav Group

Sustainable investment policy of Zavarovalnica Triglav and the Triglav Group

Zavarovalnica Triglav

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

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the Triglav Group
Solvency and Financial

Condition Reports of the Triglav Group and

In this report

2024 Key Highlights 5
1. Address by the President of
the Management Board		 7
2. Triglav Group and Zavarovalnica Triglav in 2024 9
3. Report of the Supervisory Board 17
4. Triglav Group strategy and plans 23
5. Corporate Governance Statement 23
6. The share and shareholders of
Zavarovalnica Triglav		 46
7. Macroeconomic environment and
market trends		 52
8. Operations of the Triglav Group and
Zavarovalnica Triglav		 62
9. Risk management 77

10. Sustainability report 86
10.1 General disclosures (ESRS 2) 87
10.2 Environmental aspects 106
10.3 Social aspects 126
10.4 Governance aspects 142
10.5 Limited Assurance Report on
Sustainability Information		 145
11. Digital Operational Resilience Report 148

Appendix

1.
Triglav Group as at 31 December 2024		 325
2.
Business network of the Triglav Group		 329
3.
Glossary of terms		 331
4. Alternative performance measures 334
5.
The list of ESRS disclosure requirements included in
the sustainability statement		 336
6.
The list of datapoints in cross-cutting and topical standards
that derive from other EU legislation		 338
7. GRI, SASB in SDG Content Index 342

Business report Accounting report

Statement of management's responsibilities 151
Independent auditor's report 152
1. Financial statements 156
2. Notes
to
the
financial
statements		 162
3. Notes
to
the
specific
significant
items
in
the
financial
statements		 232
4. Other information 317

2024 Key Highlights

Business report

2024 Key Highlights

Accounting report

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Appendix

Combined ratio Non-Life and Health of the Triglav Group

Total revenue in EUR million

1,279.3 708.0* 2024 2023 2022 1,425.2 1,005.8 1,393.2 940.3 -7%

Assets under management as at 31 December in EUR million

Credit rating

Positive medium-term outlook (S&P Global) Stable medium-term outlook (AM Best)

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

* Zavarovalnica Triglav's figures for 2022 do not include the data of the merged company Triglav, Zdravstvena zavarovalnica.

¢ Triglav Group ¢ Zavarovalnica Triglav

Accounting report

Appendix

2023

2024

4.00 3.94

2022

Share of women in management and supervisory bodies in the Triglav Group

1. Address by the President of the Management Board

Business report

2024 Key Highlights 1. Address by the President of the Management Board

Accounting report

Appendix

This has been a year of strong performance. The Triglav Group consistently pursued its strategic ambitions, achieved its business objectives, and Dear Shareholders and Readers!

benefited from favourable financial market conditions and relatively favourable claims development, further reinforcing its strong results. Excellent performance was recorded across all business segments, significantly exceeding expectations. Importantly, the Group remains financially robust, as reaffirmed by its high »A« credit rating, with S&P Global upgrading its outlook from stable to positive.

Earnings before tax amounted to EUR 159 million, while net earnings reached EUR 131 million. Strong results in insurance, reinsurance and asset management, alongside one-off events – particularly in health insurance – contributed to this achievement. Despite ongoing uncertainty surrounding inflationary expectations and a highly competitive market, the Group further strengthened its dominant position in the insurance market both in Slovenia and the Adria region.

The Group remained focused on maintaining the resilience of its business model, enabling adaptability to environmental challenges. It continued to pursue prudent underwriting while carefully maintaining targeted asset-liability matching. The Group remains well-capitalised, further reinforced by profitable operations and the successful issuance of a new subordinated bond. The Group's net return on equity stood at favourable 14%.

Insurance and asset management

The Group's total business volume reached EUR 1.72 billion, exceeding the target of approximately EUR 1.60 billion. Consolidated gross written premium amounted to EUR 1.62 billion, reflecting a 2% year-on-year decline due to the termination of supplemental health insurance in Slovenia. Excluding this impact, premium growth would have been 10%. Client insurance coverage increased, supported by various underwriting risk management measures. Business volume also benefited from past premium rate increases and higher sales of insurance under the principle of free movement of services (FOS).

In line with the Group's target geographical diversification, the share of premium written outside Slovenia increased. The Slovenian market accounted for 56% of total written premium, with a 6% increase, including the impact of the Health segment. In other Adria region markets, premium growth reached 9%, while in international markets, where the Group operates primarily under the FOS principle and conducts inward reinsurance business, growth stood at 21%.

The Group's combined ratio of 93.6% outperformed expectations, driven by an improved claims ratio. Claims development in 2024 remained relatively favourable, even in the context of mass CAT events.

The Group achieved strong and profitable performance across all insurance segments. In the Health segment, the business model in Slovenia was restructured, including the merger of the health insurance subsidiary into the parent company. This restructuring aimed to support continued premium growth, ensure adequate claims management and rationalise costs. The Group's key strategic guidelines and ambitions for the Health segment remain unchanged, reaffirming its position as one of the core development segments.

8

Business report

2024 Key Highlights 1. Address by the President of the Management Board

Accounting report

Appendix

Favourable financial market conditions contributed to strong performance in the Asset Management segment. Net assets under management for clients in mutual funds and through discretionary mandate services grew by 33% to EUR 2.3 billion, driven by rising equity market prices and strong net inflows.

In line with investment policies, the conservative structure and quality of the Group's investment portfolio – which grew by 15% to EUR 3.9 billion – remained largely unchanged. Bonds in developed markets, most of which have a high credit rating, constitute the majority of the total investment portfolio.

Implementation of the dividend policy by paying out dividends

Our aim is to ensure that the ZVTG share remains an attractive, secure and stable investment option for investors. In 2024, its total return was 21% and its dividend yield was 4.0%. A dividend was paid to shareholders, significantly exceeding the Group's 2023 net earnings. The objectives of the dividend policy were consistently pursued and maintained, considering the unique operating environment in 2023 and the improved outlook for 2024. These objectives have been achieved.

Strategic ambitions for 2030

Strategic objectives for 2025 were met, and in some cases, exceeded. The Group's operations remain profitable, safe and sustainable. Return on equity surpassed the 10% target in 2024. Business volume, despite a shortfall in the Health segment, is above target, with the share of premium written outside Slovenia continuing to grow steadily. Client experience in underwriting and after-sales activities was enhanced through a client-focused approach. At Group level, we expanded the

range of products and services, digitalised processes, efficiently managed sales channels and strengthened strategic partnerships. Client and employee satisfaction remain key performance indicators, with results reflecting a high level of achievement even in recent challenging years.

Looking ahead to 2030, the Group has set an ambitious strategy that considers environmental challenges, changes and opportunities. As part of its mission of Building a Safer Future, the Group will continue to enhance its profile as an international insurance and financial group, aligning with its new vision. Its ambition is to double earnings by 2030 and drive growth in markets outside Slovenia. With a client-focused approach, the Group will continue its digitalisation and strengthen existing strategic approaches to address evolving client and market needs. The goal is to bring together engaged, collaborative and entrepreneurial employees, united by shared values.

Sustainable development at the core of our activities

The Group continues to deliver on its sustainability ambitions and support the transition to a climate-neutral and climate-resilient economy. Some of this year's achievements include: Increasing the share of ESG bonds in our investment portfolio by two percentage points, reaching 13%. Transforming all mutual funds in Slovenia into funds promoting environmental and social characteristics, in line with the SFDR. Expanding our range of services and products that promote social and environmental benefits. Reducing the Group's Scope 1 and 2 carbon footprint by 12% and increasing the share of electricity from renewable sources by 4 percentage points, reaching 66%. Maintaining high corporate governance standards and fostering a culture of diversity, equality and inclusion. Remaining closely connected to our social environment, participating in a wide range of socially and environmentally responsible projects.

Additionally, we upgraded our sustainability reporting, which has followed the international GRI guidelines since 2009, further aligning it with additional standards and targets, such as SASB and SDGs. This year, we took a significant step forward by aligning our sustainability disclosures with the CSRD and ESRS.

On behalf of the Management Board and all the Triglav Group employees, I sincerely thank you for your trust in us.

Andrej Slapar President of the Management Board of Zavarovalnica Triglav

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2. Triglav Group and Zavarovalnica Triglav in 2024

Business report

Accounting report

Appendix

in EUR million
strong and profitable 2024 2023 Index
across all segments. Total business volume 1,717.6 1,738.0 99
Gross written premium 1,622.3 1,663.7 98
Taking into account Other income 95.4 74.3 128
the effects in the Total revenue 1,393.2 1,425.2 98
Insurance operating result 97.5 -7.1
Health segment, the Insurance revenue 1,298.0 1,351.2 96
Group increased its
business volume		 State compensation pursuant to the Decree on
supplemental health insurance premium		 11.0 0.0
Claims incurred 678.7 1,021.2 66
and maintained its Acquisition and administrative costs including non att. costs 370.9 358.0 104
financial strength and Net reinsurance service result -140.9 31.6
high »A« rating, with Net other insurance revenue and expenses -20.9 -10.6 197
S&P Global upgrading Net investment result 49.0 22.2 220
its outlook from Investment result 159.7 83.8 191
Financial result from insurance contracts -118.5 -69.7 170
stable to positive. Change in provisions for not achieving the guaranteed yield 0.9 8.1 11
Gains/losses and impairments of investments in associates 6.9 0.0
Its leading position in Result from non-insurance operations 12.5 5.9 213
the insurance sector Earnings before tax 159.0 21.1 755
was strengthened Net earnings 131.4 16.3 808
both in Slovenia and Other comprehensive income 6.3 34.7 18
the Adria region. Combined ratio Non-Life and Health 93.6% 101.9% -8.3 p.p.
Claims ratio Non-Life and Health 65.5% 76.3% -10.8 p.p.
Expense ratio Non-Life and Health 28.1% 25.6% 2.5 p.p.
New business margin Life 13.4% 14.6% -1.2 p.p.
Annualised return on equity 14.0% 1.8% 12.2 p.p.
Return on financial investments 3.0% 1.6% 1.4 p.p.
31 Dec 2024 31 Dec 2023 Index
Balance sheet total 4,538.3 4,099.0 111
Equity 989.0 891.1 111
Contractual service margin (CSM) 286.8 238.4 120
Assets under management (AUM) 5,893.8 4,851.4 121
Number of employees 5,204 5,318 98
Number of employees (full-time equivalent) 5,088 5,190 98

* The figures for the comparative period differ from those reported for the previous year due to a change in the definition of the Health segment and non-insurance operations (see Section 2.9 of the Accounting Report for further information). The impact of discontinued operations is discussed in greater detail in Section 3.7.6 of the Accounting Report.

2.1 Financial highlights of the Triglav Group* 2.2 Financial highlights of Zavarovalnica Triglav**

in EUR million
2024 2023 Index
Total business volume 1,134.1 1,215.6 93
Gross written premium 1,104.8 1,189.7 93
Other income 29.3 26.0 113
Total revenue 940.3 1,005.8 93
Insurance operating result 84.4 -10.6
Insurance revenue 911.1 985.6 92
State compensation pursuant to the Decree on
supplemental health insurance premium		 11.0 0.0
Claims incurred 420.8 770.0 55
Acquisition and administrative costs including non att. costs 266.0 257.3 103
Net reinsurance service result -130.7 39.5
Net other insurance revenue and expenses -20.2 -8.3 242
Net investment result 33.8 24.9 136
Investment result 134,.9 67.1 201
Financial result from insurance contracts -110.1 -62.9 175
Change in provisions for not achieving guaranteed yield 0.0 4.3 0
Gains/losses and impairments of investments in associates 9.0 16.3 55
Result from non-insurance operations -0.6 1.5
Earnings before tax 117.6 15.8 746
Net earnings 98.2 14.2 691
Other comprehensive income 0.7 33.3 2
Combined ratio 92.0% 102.8% -10.6 p.p.
Claims ratio 63.1% 77.7% -14.5 p.p.
Expense ratio 29.1% 25.1% 4.0 p.p.
New business margin Life 14.6% 13.9% 0.7 p.p.
Annualised return on equity 13.8% 2.1% 11.7 p.p.
Return on financial investments 2.8% 2.2% 0.6 p.p.
31 Dec 2024 31 Dec 2023 Index
Balance sheet total 3,273.8 2,998.9 109
Equity 741.6 682.5 109
Contractual service margin (CSM) 271.4 225.5 120
Number of employees 2,223 2,349 95
Number of employees (full-time equivalent) 2,197 2,315 95

** The effects of the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav on 1 October 2024 are explained in more detail in Section 2.7 Merger of the subsidiary Triglav, Zdravstvena zavarovalnica in the Accounting Report. Zavarovalnica Triglav's figures for 2023 are adjusted and include the data of the merged company Triglav, Zdravstvena zavarovalnica. The impact of discontinued operations is discussed in greater detail in Section 3.7.6 of the Accounting Report.

The breakdown of profit or loss in the Business Report (comprising insurance operating result, net investment result, result from non-insurance operations) differs from that of the statement of profit and loss in the Accounting Report (comprising insurance service result, investment result, financial result from insurance contracts and other profit or loss categories). The presentation of the insurance operating result also takes into account non-attributable costs, insurance revenue, insurance service expenses, net other insurance revenue and insurance service expenses, and state compensation under the Decree on setting the maximum price of the supplemental health insurance premium. Furthermore, the net investment result includes the financial result from insurance contracts, change in provisions for not achieving the guaranteed yield, gains/losses on investments in associates and impairment of investments in associates, in addition to the investment result. Other categories are included in the result from non-insurance operations.

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Alternative performance measures and a glossary of key terms are provided in the appendix to the Annual Report.

The Triglav Group's performance was strong and profitable across all segments.

Taking into account the effects in the Health segment, the Group increased its business volume and maintained its

Its leading position in the insurance sector was strengthened both in Slovenia and the Adria region.

Accounting report

Appendix

2.3 Environmental, social and governance (ESG) aspects of the Triglav Group's operations

2024 2023 Index
1. Environmental aspects
Carbon footprint (tonnes of CO2 equivalent)* 7,038 7,992 88
Scope 1 and 2 carbon footprint per employee (tonnes of CO2 equivalent)* 1.34 1.51 89
Electricity consumption (MWh) 9,420 10,342 91
Share of electricity consumption from renewable sources (%) 66 62 107
Written premium from products promoting social and environmental benefits (EUR million) 22.9 25.0 92
Assets under management in funds that incorporate sustainability aspects (EUR million) 1,977.3 1,139.0 174
Investments in social impact, green and sustainable bonds (EUR million) 339.4 262.5 129
2. Social aspects
Employee satisfaction (ORVI) 3.97 3.94 101
Average employee age 45.1 45.1 100
Women employees to total employees ratio (%) 55.7 55.0 101
Employee turnover (number of leavers/average number of employees; %) 16.5 12.0 138
Average number of training hours per employee 31 27 116
Lost time incident rate – LTIR
(number of work-related incidents/total number of hours of all employees x 1,000,000)		 0.96 1.88 51
Client satisfaction of Triglav Group (NPS)** 70 73 97
Investments into the community (prevention, donations, sponsorships) (EUR million) 9.5 8.9 107
3. Governance aspects
Proportion of women in the management board/supervisory board in parent company (%) 20.0/37.5 20.0/25.0
Proportion of women at the first management level under the management board (%) 45.7 44.6 102
Proportion of women in management and supervisory bodies (%) 26.4 26.7 99
Average age of Zavarovalnica Triglav Management Board members 48.8 47.8 102
Independence of Zavarovalnica Triglav Supervisory Board members, shareholder representatives (% of members) 100 100 100
Term of office of the current President of the Management Board (years) 11 10 110
Policies adopted: equal opportunities policy, anti-corruption policy,
employee protection/whistleblower protection policy		 YES YES
Fair business practices (number of fraud cases investigated) 1,756 1,771 99
Internationally renowned audit firm (Big 4) YES YES
Period of cooperation with the existing auditor (years) 6 5 120
Investor relations when publishing results YES YES
Economic value generated (EUR million) 1,712.9 1,642.4 104
Economic value distributed (EUR million) 1,621.3 1,682.9 96
Economic value retained (EUR million) 91.7 -40.5

* Includes Scope 1 and 2 emissions under the location-based method. A more detailed calculation of Scope 1 and 2 GHG emissions is shown in Section 10.2.1.1 The Triglav Group's carbon footprint.

** NPS shows the share of promoters who would recommend the company to their acquaintances and friends based on experience.

For additional information about this report please contact:

Zavarovalnica Triglav d.d., Ljubljana Miklošičeva cesta 19, 1000 Ljubljana Blaž Kmetec, Executive Director of Finance and Controlling Email: [email protected]

2.4 Significant events in 2024

Search in report Strong performance At the half-year mark, the Triglav Group had revised its annual profit guidance upwards, driven by one-off events in addition to strong performance across all segments. Sustaining its strong performance in the second half of the year, the Group exceeded its year-end earnings before tax estimate (see Section 8. Operations of the Triglav Group and Zavarovalnica Triglav for more information). Dividend payment At the May General Meeting of Shareholders, the shareholders adopted the resolution proposed by the Management Board and the Supervisory Board to pay a dividend of EUR 1.75 gross per share or EUR 39.7 million in total, representing a 5% dividend yield. See Section 6.4 Dividends and dividend policy for more information. The Triglav Group's upgraded strategy The Triglav Group Strategy for 2025–2030 was adopted at the end of the year. It is ambitious and focuses on ensuring profitable, safe and sustainable operations. See Section 4. Triglav Group strategy and plans for more information. Corporate governance The General Meeting of Shareholders appointed Barbara Nose and Rok Ponikvar as new Supervisory Board members – shareholder representatives. The President of the Management Board, Andrej Slapar, along with Management Board members Uroš Ivanc and Tadej Čoroli, commenced a new five-year term of office. See Section 5.3 Management bodies of Zavarovalnica Triglav for more information. Business optimisation of the Health segment To simplify and optimise operations in the Health segment on the Slovenian market, Zavarovalnica Triglav acquired the subsidiary Triglav, Zdravstvena zavarovalnica. The merger was entered in the register of companies on 1 October 2024. See Section 2.7 Merger of the subsidiary Triglav, Zdravstvena zavarovalnica of the Accounting Report for more information. The high "A" credit rating affirmed The credit rating agencies S&P Global and AM Best affirmed the high "A" credit rating with a stable medium-term outlook of the Triglav Group (and thereby of Zavarovalnica Triglav and the subsidiary Pozavarovalnica Triglav Re). In December 2024, S&P Global upgraded its outlook from stable to positive. See Section 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav for more information. Issue of a subordinated bond As part of the Triglav Group's regular capital management activities, Zavarovalnica Triglav issued a subordinated bond in July 2024 with a nominal value of EUR 100 million, maturing in 20.5 years. See Section 6.7 Bonds for more information. Business report 2024 Key Highlights 1. Address by the President of the Management Board 2. Triglav Group and Zavarovalnica Triglav in 2024 2.1 Financial highlights of the Triglav Group 2.2 Financial highlights of Zavarovalnica Triglav 2.3 Environmental, social and governance (ESG) aspects of the Triglav Group's operations 2.4 Significant events in 2024 2.5 Financial calendar 2025 2.6 Activities, markets and position of the Triglav Group 2.7 Management of Zavarovalnice Triglav 3. Report of the Supervisory Board 4. Triglav Group strategy and plans 5. Corporate Governance Statement 6. The share and shareholders of Zavarovalnica Triglav 7. Macroeconomic environment and market trends 8. Operations of the Triglav Group and Zavarovalnica Triglav 9. Risk management 10. Sustainability report 11. Digital Operational Resilience Report Accounting report Appendix

11

2.5 Financial calendar 2025

From Wednesday, 7 May 2025

From Wednesday, 6 August 2025

From Wednesday, 5 November 2025

Business report

Calendar of financial announcements for 2025
2024 Key Highlights
1. Address by the President of the Management Board
2. Triglav Group and Zavarovalnica Triglav in 2024
2.1 Financial highlights of the Triglav Group		 Date of
announcement*		 Type of announcement Quiet period**
2.2 Financial highlights of Zavarovalnica Triglav
2.3 Environmental, social and governance (ESG)
aspects of the Triglav Group's operations
2.4 Significant events in 2024
2.5 Financial calendar 2025		 Thursday,
6 March 2025
8:30		 Preliminary key figures for 2024 From Thursday,
13 February 2025
2.6 Activities, markets and position of
the Triglav Group
2.7 Management of Zavarovalnice Triglav
3. Report of the Supervisory Board
4. Triglav Group strategy and plans
5. Corporate Governance Statement
6. The share and shareholders of Zavarovalnica Triglav
7. Macroeconomic environment and market trends
8. Operations of the Triglav Group and		 Monday,
31 March 2025
8:30		 Audited annual report for 2024 From Monday,
17 March 2025
Zavarovalnica Triglav
9. Risk management
10. Sustainability report
11. Digital Operational Resilience Report
Accounting report
Appendix		 Thursday,
24 April 2025		 Call notice of the General
Meeting of Shareholders to
decide on the distribution of
accumulated profit
Wednesday,
21 May 2025
8:30		 January–March 2025
interim financial report		 From Wednesday,
7 May 2025
Tuesday,
3 June 2025		 General Meeting of
Shareholders and
announcement of
its resolutions
Search in report Wednesday,
20 August 2025
8:30		 January–June 2025
interim financial report		 From Wednesday,
6 August 2025
Wednesday,
19 November 2025
8:30		 January–September 2025
interim financial report		 From Wednesday,
5 November 2025
The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

* These are planned dates, which may differ from the actual dates.

** The quiet period denotes a period preceding the announcement of a financial report, during which Zavarovalnica Triglav does not disclose any information on current operations to the public.

The general public is informed about the dates of key announcements and about any amendments to the planned time of announcement: in the Ljubljana Stock system (seonet.ljse.si) and on Zavarovalnica Triglav's corporate website (www.triglav.eu).

Exchange SEOnet information

12

2.6 Activities, markets and position of

the Triglav Group

Accounting report

Appendix

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

2.6 Activities, markets and position of the Triglav Group

The Group also operates in the wider international environment, mainly through partnerships with foreign insurance brokerage and agency companies as well as with reinsurers. Its key markets in the Adria region and its two core activities are shown below.

The Triglav Group is the leading insurance and financial group in Slovenia and the Adria region as well as one of the leading groups in South-East Europe.

Slovenia

1st place 40.8% market share* (+1.3 p.p.)

2,621 employees

EUR 990 million total business volume (–11%)

8th place 4.8% market share* (–0.4 p.p.)

Croatia

567 employees

EUR 93 million total business volume (+1%)

Serbia

5th place 7.7% market share* (+0.2 p.p.)

818 employees

EUR 117 million total business volume (+19%)

Montenegro

market share*

employees

1st place 34.6%

(–0.4 p.p.)

378

EUR 51 million total business volume (+11%)

Bosnia and Herzegovina

5th place 8.3% market share* (–1.0 p.p.)

537 employees

EUR 52 million total business volume (+1%)

North Macedonia

EUR 38 million total business volume

3rd place 13.8% market share* (+0.4 p.p.)

283 employees

(+15%)

International insurance and reinsurance

13

EUR 377 million total business volume (+21%)

* The figure illustrates the market share of the insurance business in each market. Data for Serbia represent the period from January to September 2024.

2024 Key Highlights

2.6 Activities, markets and position of

the Triglav Group

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2.6.1 Insurance

The insurance activity includes non-life, health and life insurance, as well as reinsurance.

The Group's insurance business comprises:

  • in Slovenia: Zavarovalnica Triglav d.d. and Pozavarovalnica Triglav Re d.d.;
  • outside Slovenia: seven insurance companies in the Adria region (Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia), Zavarovalnica Triglav d.d.'s branch in Greece (under the FOE principle) and business partnerships under the principle of free movement of services (FOS).

Insurance market position in the Adria region and South-East Europe

The Triglav Group strengthened its dominant market position in the Adria region (Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia). According to the latest available data for 2023, it increased its market share by 0.1 percentage points to 21.8%.

The market share of insurance groups and insurers in the Adria region in 2023 and 2022*

Zavarovalnica Triglav, the Group's parent company, is the leader among the insurers in South-East Europe (Albania, Bulgaria, Bosnia and Herzegovina, Montenegro, Croatia, Moldova, Romania, North Macedonia, Slovenia and Serbia). The Romanian insurers Groupama Asigurari and Allianz – Tiriac Asigurari again ranked second and third. Eight insurance companies of the Triglav Group ranked among the top 100 insurers in South-East Europe in terms of gross written premium. All 100 insurers collectively recorded a total written premium of EUR 12.4 billion, up by 17% compared to the previous year.

The largest insurers in South-East Europe by written premium in 2023 (million EUR)

2.6.2 Asset management

The asset management activity at the Triglav Group comprises the management of the parent company's insurance portfolios (assets backing liabilities and guarantee funds), clients' pension savings through the insurance services of the Group's insurance and pension companies, asset management by asset management companies and the management of clients' assets in mutual funds and discretionary mandate assets. See Section 8.4 Asset management for more information on asset management and Section 7.5 Asset and investment fund management market in Slovenia for the situation of the asset management market in Slovenia.

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

* Data for 2024 not yet available. 2023 2022 Source: Zavarovalnica Triglav's calculation based on the data of national insurance supervision agencies and insurance associations.

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024 Search in report 100.00% Pozavarovalnica Triglav Re d.d., Ljubljana 100.00% Triglav, pokojninska družba d.d., Ljubljana 34.00% Društvo za upravljanje EDPF a.d., Banja Luka 100.00% Triglav zdravje asistenca d.o.o., Ljubljana 100.00% Eskulap d.o.o., Ljubljana 100.00% Triglav Skladi d.o.o., Ljubljana 63.58% Triglav Fondovi d.o.o., Sarajevo 100.00% Triglav Osiguranje d.d., Zagreb 100.00% Triglav Savjetovanje d.o.o., Zagreb, u likvidaciji 100.00% Triglav Osiguranje a.d.o., Belgrade 100.00% Triglav Savetovanje d.o.o., Belgrade, u likvidaciji 100.00% Triglav International d.o.o., Belgrade 100.00% Triglav Osiguranje a.d., Banja Luka 97.78% Triglav Osiguranje d.d., Sarajevo 100.00% Triglav Savjetovanje d.o.o., Sarajevo 100.00% Triglav INT d.o.o., Ljubljana 100.00% Autocentar BH d.o.o., Sarajevo 93.01% Sarajevostan d.o.o., Sarajevo 100.00% Triglav Svetovanje d.o.o., Domžale 100.00% Lovćen životna osiguranja a.d., Podgorica 99.07% Lovćen Osiguranje a.d., Podgorica 100.00% Lovćen auto d.o.o., Podgorica 100.00% Triglav Avtoservis d.o.o., Ljubljana 82.01% Triglav Osiguruvanje a.d., Skopje 14.29% 100.00% Triglav penzisko društvo a.d., Skopje 85.71% Triglav Osiguruvanje Život a.d., Skopje 100.00% Triglav upravljanje nekretninama d.o.o., Zagreb 100.00% Triglav, Upravljanje nepremičnin d.o.o., Ljubljana 100.00% Triglav upravljanje nekretninama d.o.o., Podgorica 100.00% Triglav upravljanje nekretninama d.o.o., Sarajevo 100.00% Triglav upravuvanje so nedvižen imot DOOEL, Skopje 100.00% Salinera d.o.o, Ljubljana 100.00% Trigal Renewables d.o.o., Ljubljana 49.90% TRIGAL d.o.o., Ljubljana 100.00% Trigal Funds d.o.o., Ljubljana 100.00% Trigal Dev d.o.o., Belgrade KATERA Beteiligungs-Verwaltungsgesellschaft P11, mbH, München 100.00% Nama IN d.o.o., Ljubljana 24.90% 100.00% Nama d.d., Ljubljana 100.00% Grefino d.o.o., Ljubljana 38.47% Triglavko d.o.o., Ljubljana 100.00% Medicinsko termalni center Fontana d.o.o., Maribor 84.00% Medi Cons kardiologija d.o.o., Bled 100.00% Zavod Vse bo v redu, Ljubljana 100.00% Gastromedica d.o.o., Murska Sobota 100.00% Internistična GE ambulanta d.o.o., Bled 40.10% Diagnostični center Bled d.o.o., Bled 85.00% Cardial d.o.o., Ljubljana 100.00% DC Naložbe d.o.o., Bled 23.58% Alifenet d.o.o., Ljubljana 100.00% Kirurški sanatorij Rožna dolina d.o.o., Ljubljana 100.00% Neuroedina d.o.o., Bled Zavarovalnica Triglav d.d. Parent company Subsidiary Associate Joint venture Equity stake Zavarovalnica Triglav d.d. – Greek Branch, Athens We do not show companies with Group's share lower than 20%. The changes in the Group are discussed in greater detail in Section 2.1.4.5 of the Accounting Report. 2.6.3 Composition of The Triglav Group members and their participating interests as at 31 December 2024 the Triglav Group As at 31 December 2024, the Triglav Group comprised 54 companies: the parent company, 31 subsidiaries, 12 associates and 10 joint ventures. Business report 2024 Key Highlights 1. Address by the President of the Management Board 2. Triglav Group and Zavarovalnica Triglav in 2024 2.1 Financial highlights of the Triglav Group 2.2 Financial highlights of Zavarovalnica Triglav 2.3 Environmental, social and governance (ESG) aspects of the Triglav Group's operations 2.4 Significant events in 2024 2.5 Financial calendar 2025 2.6 Activities, markets and position of the Triglav Group 2.7 Management of Zavarovalnice Triglav 3. Report of the Supervisory Board 4. Triglav Group strategy and plans 5. Corporate Governance Statement 6. The share and shareholders of Zavarovalnica Triglav 7. Macroeconomic environment and market trends 8. Operations of the Triglav Group and Zavarovalnica Triglav 9. Risk management 10. Sustainability report 11. Digital Operational Resilience Report Accounting report Appendix

49.00% MDT & T d.o.o., Maribor

2024 Key Highlights

2.7 Management of Zavarovalnice Triglav

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2.7 Management of Zavarovalnica Triglav

The Management Board of Zavarovalnica Triglav comprises:

Andrej Slapar President

The period from the first appointment to the end of the current term of office: 2013–2029

Employed at the Triglav Group: from 1997

The period from the first appointment to the end of the current term of office: 2014–2029

Employed at the Triglav Group: from 2001

Tadej Čoroli

Member The period from the first appointment to the end of the current term of office: 2014–2029

Employed at the Triglav Group: from 2001

Marica Makoter

Member

The period from the first appointment to the end of the current term of office: 2011–2026

Employed at the Triglav Group: from 2001

Blaž Jakič Member

The period from the first appointment to the end of the current term of office: 2023–2028

Employed at the Triglav Group: from 2010 16

3. Report of the Supervisory Board

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Report of the Supervisory Board of Zavarovalnica Triglav d.d. on the verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024 and Opinion of the Supervisory Board of Zavarovalnica Triglav d.d. on the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024

In 2024, the Supervisory Board of Zavarovalnica Triglav d.d. diligently and responsibly fulfilled its supervisory role, ensuring high-quality oversight of the operations of Zavarovalnica Triglav d.d. and the Triglav Group. It oversaw various aspects of their operations and development, and on that basis took appropriate decisions and followed up on their implementation. Individual topics were initially reviewed by the Supervisory Board's committees, whose findings and proposals supported well-informed and prudent decisionmaking. The Supervisory Board also monitored the implementation and execution of the Triglav Group's strategy and actively participated in the formulation and adoption of the new strategy.

The Supervisory Board performed its work within the scope of its powers and competencies set out by law, the Company's Articles of Association and its own Rules of Procedure.

Tim Umberger Vice Chairman

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3.1 Introduction

Pursuant to Article 282 of the Companies Act and Article 69 of the Insurance Act, the Supervisory Board hereby presents its Report on the verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024 (hereinafter: the report) and its Opinion on the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024.

The findings are based on the results of the supervision of operations of Zavarovalnica Triglav d.d. (hereinafter: the Company, the controlling company or the parent company) in 2024 and on the verification of the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024.

An integral part of the report is also the opinion of the Supervisory Board on the work of the Internal Audit Department in 2024 and the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024.

3.2 General information

The Supervisory Board and its committees in 2024

The composition of the Supervisory Board in 2024 is described in Section 5. Corporate Governance Statement (Supervisory Board) of the Business Report. In 2024, the Supervisory Board held nine sessions and had four committees: the Audit Committee, the Appointment and Remuneration Committee, the Strategy Committee and the Nomination Committee. In addition, at its 7th/2024 meeting on 21 August 2024, it established the fifth committee, the Risk Committee. The composition of the Supervisory Board committees in 2024 as well as the more important duties and powers of individual committees are described in Section 5. Corporate Governance Statement (Composition of Supervisory Board committees and their activities in 2024) of the Business Report.

Audit Committee

In 2024, the Audit Committee held six meetings, at which it, among other things:

  • Monitored and discussed financial reporting procedures and the external audit of the annual financial statements of the Triglav Group and Zavarovalnica Triglav d.d.;
  • Assessed the content of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023 and the 2024 interim reports;
  • Took note of the management representation letter for Zavarovalnica Triglav d.d. and the Triglav Group;
  • Discussed the Solvency and Financial Condition Report of Zavarovalnica Triglav d.d. and the Solvency and Financial Condition Report of the Triglav Group as at 31 December 2023, including the independent auditor's assurance reports;
  • Discussed the Report on the Self-Assessment of the Effectiveness of Internal Controls in Financial Reporting;
  • Monitored the effectiveness of the Internal Audit Department;
  • Took note of the Internal Audit Department's interim and annual reports, its annual work plan for 2025 and its strategy for 2025–2030;
  • Took note of the amendments to the Internal Audit Policy of Zavarovalnica Triglav d.d;
  • Took note of remuneration of the director of Internal Audit Department for 2023;
  • Monitored and discussed the risk management systems, the functioning of internal controls, the Internal Audit Department's interim reports, recommendations, annual work plan for 2025 and guidelines for the 2026–2028 period;
  • Discussed the findings of the Slovenian Insurance Supervision Agency and other supervisory bodies in supervision procedures under the Audit Committee's responsibility and was briefed on procedures related to these findings or requirements;
  • Supervised and discussed the conclusion of agreements with audit firms, the independence of the certified auditor, the quality of auditing, the audit plan for 2024 and the auditor's report following the pre-audit of Zavarovalnica Triglav d.d. for 2024;
  • Discussed risk reports of Zavarovalnica Triglav d.d. and the Triglav Group;
  • Took note of the comparative analysis of capital adequacy of (re)insurance groups in the European Union and (re)insurers in Slovenia;
  • Took note of the proposal for stress and scenario tests, which show the potential risks of the Group to be addressed within the own risk and solvency assessment (ORSA) process;
  • Discussed the Compliance Office Annual Report for 2023;
  • Discussed the Statement of Compliance with the Slovenian Corporate Governance Code;
  • Monitored the operation of the information technology and cyber security area;
  • Took note of and approved the Quality Monitoring Report of the External Auditor for Zavarovalnica Triglav d.d. for 2023;
  • Led the selection process for the statutory auditor for the financial years 2025–2028;
  • Discussed the Status Report on the Implementation of ESG Reporting;
  • Took note of the Sustainability-Related Double Materiality Assessment Methodology of Zavarovalnica Triglav d.d. and the Triglav Group and the Report on the Results of the Sustainability-Related Double Materiality Assessment Process for Zavarovalnica Triglav d.d. and the Triglav Group;
  • Discussed the Status Report on the Implementation of the Digital Operational Resilience Act (DORA) Requirements;
  • Adopted amendments to the Rules of Procedure of the Audit Commission.

The external expert Jernej Pirc provided his expertise and support to the work of the Audit Committee in relation to information technology issues. The Audit Committee carried out a performance self-assessment with the aim of ensuring the continued improvement and quality of its work and adopted an action plan for the improvement of its performance.

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Appointment and Remuneration Committee

The Appointment and Remuneration Committee held seven meetings in 2024. Its most important activities included:

  • Drawing up draft periodic fit and proper assessments of the members of the Management Board and the Supervisory Board and of the two bodies as a whole;
  • Preparing draft fit and proper assessments for Supervisory Board candidates, including the external member of the Audit Committee and the newly appointed external member, as well as for the body as a whole;
  • Reviewing the calculation and amount of the average gross salary for 2024 in the Group members which are headquartered in the Republic of Slovenia and were fully consolidated by the Group pursuant to the Act Governing the Remuneration of Managers of Companies with Majority Ownership Held by the Republic of Slovenia or Self-Governing Local Communities (ZPPOGD);
  • Discussing the adjustment of the basic salary of Management Board members and the calculation of the variable part of remuneration of the Management Board members based on the Group's performance;
  • Approving the proposed amendments to the Methodology for determining the variable remuneration and decreasing basic salary of Management Board members in 2025 and setting the targets for the part of the salary for the performance of the Management Board members for 2025;
  • Discussing the report on the development of key promising staff at Zavarovalnica Triglav d.d.;
  • Discussing the succession evaluation report;
  • Reviewing amendments to the Fit and Proper Policy for the Management Board and Supervisory Board Members of Zavarovalnica Triglav d.d. and the Remuneration Policy of Zavarovalnica Triglav d.d.;
  • Discussing the Works Council's proposal for the removal of the Management Board member Worker Director and the proposal for an extraordinary fit and proper assessment of the Management Board member – Worker Director.

Strategy Committee

The Strategy Committee, which held three meetings in 2024, devoted special attention to the implementation and revision of the Triglav Group strategy for 2025–2029 and the starting points for the development of the Triglav Group's business plan for 2025.

Risk Committee

The Risk Committee was established at the 7th/2024 Supervisory Board session, held on 21 August 2024. It met once in 2024. Its activities included::

  • Adoption of the Rules of Procedure of the Risk Committee;
  • Discussion of risk reports of Zavarovalnica Triglav d.d. and the Triglav Group as at 30 September 2024, including the findings of the ORSA process;
  • Discussion of the updates of the main internal documents on risk management;
  • Consideration of the Progress Report on the IT Project in Support of the Core Business, and
  • Discussion of the implementation of the Business Intelligence Strategy.

Nomination Committee

The Nomination Committee was established on 29 November 2023 to carry out the nomination process for appointing a candidate for Supervisory Board member – shareholder representative to replace Igor Stebernak, whose term of office expired on 3 June 2024. Following the resignation of Supervisory Board member Jure Valjavec, the Nomination Committee was tasked with proposing two candidates for Supervisory Board membership. In 2024, the Nomination Committee held five meetings and proposed two candidates for Supervisory Board members – shareholder representatives, both of whom were subsequently appointed at the General Meeting of Shareholders.

The Nomination Committee was re-established on 19 November 2024 to conduct the nomination process for appointing two candidates for Supervisory Board members – shareholder representatives, as the terms of office of Andrej Andoljšek and Tomaž Benčina on the Supervisory Board will expire on 14 June 2025.

3.3 Work of the Supervisory Board and scope of supervision of the Company's operations in 2024

The description of the Supervisory Board's operations and the scope of monitoring and supervision of the governance of the Company and the Group in 2024 are based on the supervision of the Company's and the Group's operations performed by the Supervisory Board in 2024, acting within its powers. The Supervisory Board held nine sessions in 2024.

The Supervisory Board's duty is to supervise how the Company conducts its business and to perform other tasks in accordance with the Companies Act, the Insurance Act, the Company's Articles of Association, the Rules of Procedure of the Supervisory Board and the Slovenian Corporate Governance Code. The methods and organisation of its work are set out in the Rules of Procedure of the Supervisory Board, which are published on the Company's website.

a) With regard to its core competences, in 2024 the Supervisory Board:

  • Approved the Solvency and Financial Condition Report (SFCR) of Zavarovalnica Triglav d.d. and the Triglav Group for 2023 and the annual capital adequacy as at 31 December 2023 and took note of the independent auditor's assurance report;
  • Adopted the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023, the Report by the Supervisory Board of Zavarovalnica Triglav d.d. on the verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023 and the Opinion of the Supervisory Board of Zavarovalnica Triglav d.d. on the Annual Internal Audit Report for 2023 of the Internal Audit Department of Zavarovalnica Triglav d.d.;
  • Discussed unaudited interim financial reports of the Triglav Group and Zavarovalnica Triglav d.d. for the periods from 1 January to 31 March 2024, from 1 January to 30 June 2024 and from 1 January to 30 September 2024;
  • Approved the Internal Audit Department's work plan for 2025 and the Internal Audit Department's strategy for 2025–2030;

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

2024 Key Highlights

3.4 Self-assesment

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

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  • Discussed two half-yearly reports and the Annual Internal Audit Report of the Internal Audit Department for 2023;
  • Approved the Triglav Group's business policy and business plan for 2025 and took note of the key findings of ORSA;
  • Approved the new Triglav Group Strategy for 2025–2030;
  • Proposed to the 49th General Meeting of Shareholders of Zavarovalnica Triglav d.d. to grant a discharge to the Management Board for 2023, submitted a proposal on the distribution of accumulated profit, presented the remuneration policy and the remuneration report for 2023, and acknowledged the resignation letter of a Supervisory Board member, the expiry of a Supervisory Board member's term of office and the appointment of new Supervisory Board members;
  • Discussed the findings of the Insurance Supervision Agency and other supervisory bodies in supervision procedures and was briefed on procedures related to these findings or requirements;
  • Approved the amendments to the Governance System and Policy of Zavarovalnica Triglav d.d., the Actuarial Function Policy, the Outsourcing Policy, the Remuneration Policy of Zavarovalnica Triglav d.d., the Internal Audit Policy of Zavarovalnica Triglav d.d. and the Compliance Policy of Zavarovalnica Triglav d.d.;
  • Discussed the Statement of Compliance with the Slovenian Corporate Governance Code and took note of the positions on the Corporate Governance Code for Companies with Capital Assets of the State and the Recommendations and Expectations of the Slovenian Sovereign Holding.

b) With regard to the supervision of the management of the Company's operations, in 2024 the Supervisory Board:

  • Discussed the reports of the Audit Committee, the Appointment and Remuneration Committee, the Strategy Committee, the Nomination Committee and the Risk Committee, and was briefed on the financial reports of Zavarovalnica Triglav d.d., the Triglav Group and Zavarovalnica Triglav's subsidiaries;
  • Took note of the implementation of the Triglav Group strategy;
  • Monitored the assessed performance indicators of the Company in each period, capital adequacy, the implementation of the business plan and potential measures;
  • Took note of risk reports, the Risk Underwriting and Management Strategy, the Risk Appetite Statement, the Capital Management Policy and the Policy of the Risk Management and Capital Adequacy Function of Zavarovalnica Triglav d.d. and the Triglav Group;
  • Monitored the effectiveness of the Internal Audit Department;
  • Took note of the Report of the Life Insurance Actuarial Function Holder in Zavarovalnica Triglav d.d. and the Report of the Non-Life Insurance Actuarial Function Holder in Zavarovalnica Triglav d.d.;
  • Discussed the merger of Triglav, Zdravstvena zavarovalnica d.d. with Zavarovalnica Triglav d.d;
  • Took note of Triglav, Zdravstvena zavarovalnica d.d.'s claim for reimbursement of the difference between the amount of costs paid to healthcare service providers and the amount of insurance revenue from supplemental healthcare insurance;
  • Approved the issue of a subordinated bond;
  • Took note of the report on the development of key promising staff at Zavarovalnica Triglav d.d. in 2023;
  • Took note of the Triglav Group Cyber Security Report;
  • Was briefed on other information regarding Zavarovalnica Triglav d.d., the Triglav Group and its subsidiaries, and
  • Approved individual transactions in accordance with the law and the Rules of Procedure of the Supervisory Board.

c) Other major actions taken by the Supervisory Board in 2024:

  • Discussing periodic fit and proper assessments of the members of the Management Board and the Management Board as a collective body, the members of the Supervisory Board and the Supervisory Board as a collective body, as well as of the Audit Committee external member Luka Kumer;
  • Approving the Group's performance factor, determining the annual performance bonus for the Management Board of Zavarovalnica Triglav d.d. for 2023 and approving the amendments to the Methodology for determining the variable remuneration and decreasing basic salary of Management Board members for 2024;
  • Discussing the annual report of the Works Council of Zavarovalnica Triglav d.d. and the Works Council's proposal to recall the Worker Director;
  • Discussing the draft extraordinary fit and proper assessment of the Management Board member – Worker Director and formalised the procedure for the Works Council to appoint a new Worker Director;
  • Taking note of the enhancement of the Triglav Group's minimum standards, as well as its governance and internal control system;
  • Adopting the labour costs plan of the Supervisory Board for 2025, the financial calendar and the timetable for the meetings of the Supervisory Board and its committees in 2025;
  • Performing other activities related to the supervision and work of the Supervisory Board and its committees.

The costs in connection with the Supervisory Board's work other than the remuneration paid to its members and committees (disclosed in Section 4.4 Related party transactions of the Accounting Report) mostly included the rental costs of interpretation equipment and translation costs for smooth execution of its sessions, training costs of the members of the Supervisory Board and its committees, and the outsourced IT services for the Audit Committee. These costs, including all remuneration, amounted to EUR 407,932 in 2024.

3.4 Self-assesment

Specific topics were discussed in advance by the Supervisory Board's committees, which drafted resolutions to be adopted by the Supervisory Board and meticulously carried out other tasks within the scope of their powers. The committee chairs regularly reported on their work at the sessions of the Supervisory Board, which discussed the adopted decisions, submitted recommendations and opinions and passed appropriate resolutions after due consideration.

All members were involved in the work of the Supervisory Board and its committees. With their attendance at its sessions and active participation in discussions and decision-making, they contributed to the effective discharge of duties within the powers of the Supervisory Board and its committees. The work of the Supervisory Board is well managed and supported, whilst the planning and frequency of its sessions is adequate. Both the Rules of Procedure of the Supervisory Board and the Rules of Procedure of the Audit Committee include clear rules of conduct in the event of a conflict of interest.

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3.8 Proposal for the distribution of accumuated profit

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The Supervisory Board members and the Audit Committee's external member signed and submitted statements of independence in accordance with the Slovenian Corporate Governance Code, which are published on the Company's website. All Supervisory Board members declared themselves independent in accordance with the Slovenian Corporate Governance Code criteria (all statements of independence are published on the Company's website). All members of the Supervisory Board and its committees diligently adhere to the rules on managing conflicts of interest. The Supervisory Board and its committees follow the highest standards of conflict of interest management.

The Supervisory Board is of the opinion that its cooperation with the Management Board was adequate, in accordance with the applicable legislation and good practices. To the best of its knowledge, the Supervisory Board was informed of all events of material significance to the assessment of the situation and its consequences, and to the effective supervision of the Company's operations. The documents provided as materials for the Supervisory Board's sessions were of good quality and information was accurate, relevant, reliable, comparable and exhaustive. The Supervisory Board regularly followed the implementation of its resolutions. The Governance System and Policy of Zavarovalnica Triglav d.d. sets out main corporate governance guidelines, taking into account the set long-term objectives and the defined role and work of the Supervisory Board and its committees.

The fit and proper criteria as set out in the Fit and Proper Policy for the Management Board and Supervisory Board Members of Zavarovalnica Triglav d.d. apply to both the Supervisory Board as a collective body and to Supervisory Board members as individuals. A fit and proper assessment was carried out before new Supervisory Board members – shareholder representatives took office. On 10 January 2024, the Slovenian Insurance Supervision Agency issued a final decision prohibiting Vinko Letnar from serving as a Supervisory Board member, thereby confirming the Supervisory Board's views and assessment. In addition, the Appointment and Remuneration Commission's periodic assessment was performed. The Supervisory Board as a collective body was assessed as fit and proper, taking into account the adequate range of qualifications, knowledge and experience in view of the circumstances and requirements under which the Company operates. A fit and proper assessment is also performed for the Audit Committee's external member.

The Supervisory Board regularly carries out the self-assessment procedure. Based on its findings, it adopts an action plan containing a series of proposals and measures aimed at improving its future performance. The implementation of the action plan is monitored on an ongoing basis. By implementing the self-assessment procedures, the quality of the Supervisory Board's work is improved, which is reflected in a higher quality of supervision of the operations and the areas material for the Company and the Group.

The Supervisory Board believes that its composition (despite the absence of one Supervisory Board member, employee representative) in 2024 corresponded to the size, activities and set objectives of both the Company and the Group, which enabled it to make quality decisions.

The Supervisory Board carried out its duties and powers smoothly. The sessions of the Supervisory Board and its committees were held in person and, in exceptional cases, also virtually with the help of technical means.

In view of the above, the Supervisory Board is of the opinion that its work and the work of its committees in 2024 were successful.

3.5 Opinion on the annual internal audit report for 2024

In accordance with paragraph three of Article 165 of the Insurance Act (ZZavar-1), the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024 was submitted to the Supervisory Board, which took note of it at its session on 26 March 2025. The report contains an overview of the implementation of the Internal Audit Department's (hereinafter: IAD) planned activities in 2024 and a summary of material audit findings, an assessment of the adequacy and effectiveness of risk management and the internal control system of the audited areas in both the Company and the Group, the assessment of the adequacy of the IAD's funds for its work, the IAD's quality assurance and improvement programme and its results, and the statement of independence and impartiality of the IAD and its employees.

The Internal Audit Department conducted the planned internal audits in the Company and other companies of the Group and presented its internal audit findings to the relevant persons in charge and made recommendations for improving risk management and the internal control system of audited areas. Based on the performed internal audits and the follow-up of implementation of recommendations and other relevant information, the IAD assessed that risk management and the internal control system of the audited areas in the Company and the Group were overall appropriate and were constantly improving. The Company has an appropriate governance system proportionate to the nature and scale of its operations and the complexity of its risks. It regularly monitors its risk profile and actively enhances the risk management system and the internal control system, particularly in areas of increased risk or exposure. As the Group's parent company, it also oversees risk management and internal control systems in its subsidiaries, providing support for their improvement. The IAD carried out advisory activities, followed up on recommendations, and worked on quality assurance and improvement of both the IAD and the internal audit departments of other Group members. This included the necessary activities for the implementation of the new Global Internal Audit Standards. Additionally, the IAD performed the internal audit function for Triglav, Zdravstvena zavarovalnica. The IAD reported on the implementation of its work plan, material audit findings and the monitoring of the implementation of recommendations on a quarterly basis to the Audit Committee and on a semi-annual basis to the Supervisory Board.

Based on the monitoring of the IAD's work and the submitted Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024, the Supervisory Board is of the opinion that the IAD operated in line with its work plan for 2024, which was adopted by the Management Board with the approval of the Supervisory Board, and the expectations of the Supervisory Board and that its work contributed to the better functioning of the internal control system and improved risk management both in the Company and the Group. The Supervisory Board has no objection to the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024.

3.6 Findings of the Supervisory Board regarding the operations of Zavarovalnica Triglav in 2024

Based on its monitoring and supervision of the Company's operations in 2024 and the examination and verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d., the Supervisory Board hereby establishes that the Company performed well and pursued its strategic objectives.

The Group generated EUR 159.0 million in consolidated earnings before tax and EUR 131.4 million in consolidated net earnings. The parent company's net earnings amounted to EUR 98.2 million. The Group's total revenue reached EUR 1,393.2 million, 2% lower than the previous year due to the termination of supplemental health insurance.

2024 Key Highlights

3.7 Annual report 3.8 Proposal for the distribution of

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The Group's total business volume fell by 1% to EUR 1,717.6 million. The Group's insurance companies generated insurance, coinsurance and reinsurance premiums of EUR 1,622.3 million in 2024 (index 98), of which EUR 1,104.8 million (index 93) was earned by the parent company following the merger with Triglav, Zdravstvena zavarovalnica. Premium growth was achieved in all insurance segments, with the exception of the health segment, and in most markets where the Group operates, except for the markets of Slovenia and Bosnia and Herzegovina.

The Group's consolidated operating expenses, including other attributable insurance service expenses, increased by 5% year-on-year to EUR 450.8 million.

The Group's total equity increased by 11% to EUR 989.0 million as at 31 December 2024. Return on equity stood at 14.0%.

The Group's financial stability, high capital adequacy and high profitability in 2024 were again confirmed by the two renowned rating agencies S&P Global and AM Best by assigning an »A« rating to the Group. Both rating agencies gave a stable medium-term outlook, but in December 2024, S&P upgraded its outlook from stable to positive.

3.7 Annual Report

The Management Board submitted the Unaudited and later the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024 to the Audit Committee and the Supervisory Board.

The Supervisory Board hereby ascertains that the Annual Report, which includes the Triglav Group Sustainability Report, was compiled within the statutory deadline and submitted to the appointed auditor. The Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024 was audited by the audit firm Deloitte revizija d.o.o., Ljubljana, which on 11 March 2025 expressed an unmodified opinion on the separate and consolidated financial statements in the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024. In their independent auditor's report, they addressed key audit matters related to the valuation of insurance and reinsurance contract liabilities, insurance revenue, and the valuation of investments in subsidiaries in the separate financial statements.

The audit firm Deloitte revizija d.o.o., Ljubljana also conducted the audit of the Group's consolidated Sustainability Report for 2024 and issued an independent limited assurance opinion on 11 March 2025.

Based on a detailed verification, the Supervisory Board established that the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2024, which was prepared by the Management Board and verified by a certified auditor, was compiled in a clear and transparent manner and that it was a true and fair presentation of the assets, liabilities, financial position, and profit or loss of the Triglav Group and Zavarovalnica Triglav d.d. The Supervisory Board also verified the consolidated Sustainability Report, prepared in accordance with ESRS and the EU Taxonomy Regulation, ensuring reporting integrity and regulatory compliance. The Supervisory Board is of the opinion that the Corporate Governance Statement, which is included in the Annual Report, is appropriate and has no objections to it.

In accordance with the aforementioned findings, the Supervisory Board expresses no objection to the unmodified opinion of the certified audit firm Deloitte revizija d.o.o., Ljubljana, which found that in all material respects the consolidated and separate financial statements presented a true and fair presentation of the financial position of the Triglav Group and Zavarovalnica Triglav d.d. as at 31 December 2024, their profit or loss, comprehensive income and cash flows for the year then ended, in accordance with the International Financial Reporting Standards as approved by the EU.

The Supervisory Board has no comments on the certified auditor's Limited Assurance Report on the consolidated Sustainability Report for 2024, included in the Annual Report. The auditor concluded that nothing has come to their attention that causes them to believe the consolidated Sustainability Report is not prepared, in all material respects, in accordance with the applicable legal requirements.

In view of the above, the Supervisory Board approves the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for the Year Ended 31 December 2024.

At its session, the Supervisory Board also discussed the Remuneration Report for 2024, which was verified by the authorised audit firm Deloitte revizija d.o.o., Ljubljana. In accordance with paragraph six of Article 294b of the Companies Act (ZGD-1), the auditor issued a limited assurance opinion confirming that the Remuneration Report contains all the information required by paragraphs two and three of Article 294b of the ZGD-1.

3.8 Proposal for the distribution of accumuated profit

At its 2nd/2025 session, the Supervisory Board examined the Management Board's proposal for the distribution of accumulated profit as at 31 December 2024, which will be subject to a final decision by the General Meeting of Shareholders of Zavarovalnica Triglav d.d., and approved the following draft resolution on the distribution of accumulated profit to be proposed by the Management Board to the General Meeting of Shareholders:

"The accumulated profit totalling EUR 109,430,652.82 as at 31 December 2024 shall be distributed as follows:

  • A part of the accumulated profit amounting to EUR 63,658,414.40 shall be distributed for dividend payments. A dividend in the amount of EUR 2.80 gross per share shall be paid to the shareholders appearing in the Share Register as at 17 June 2025. By 18 June 2025, the Company shall ensure funds for the payment of all dividends on the account of KDD – Centralno klirinška depotna družba d.d., intended to execute the corporate action of paying out dividends to the shareholders in accordance with the common European standards for corporate actions.
  • The distribution of the remaining accumulated profit of EUR 45,772,238.42 shall be decided on in the coming years."

Ljubljana, 26 March 2025

Andrej Andoljšek, Chairman of the Supervisory Board

4. Triglav Group strategy and plans

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Strategic risks and business opportunities are regularly assessed in response to the challenges and opportunities arising in a rapidly changing business and social environment.

  • From 2025 to 2030, in line with its vision as the region's leading international financial and insurance group, the focus will be on profitable and sustainable growth in both strategic activities. The ambition is to double earnings by 2030 and drive growth in markets outside Slovenia. With a client-centric approach, the Group will pursue further digitalisation and strengthen existing strategic approaches to address evolving client and market needs.
  • To ensure a balanced transition to a low-carbon society, the business model and investment strategies are being adapted, with the introduction of sustainable products and services.
  • The Group demonstrated the resilience of its business model with strong performance in 2024. Its operations will continue to be profitable in 2025, with further expansion of the business planned.

4.1 Today's challenges and opportunities

The environment in which the Group operates is characterised by rapid change and increasing complexity. Responsiveness and reliability remain central to the Group's revised strategy, enabling it to overcome challenges and create long-term value.

By analysing and adapting to evolving economic, social and environmental demands, the Group remains focused on maintaining steady, profitable growth while identifying opportunities and risks arising from global and regional developments.

Key developments that significantly impact the Group's business today – and are expected to continue shaping its operations in the coming years – include macroeconomic conditions, particularly inflation and interest rate volatility, as well as geopolitical uncertainties affecting financial markets and consumer confidence.

The growing impact of climate change continues to influence the insurance sector, while technological advancements, particularly in digitalisation and artificial intelligence, are driving innovation and reshaping client expectations. Demographic shifts, including ageing populations and evolving workforce dynamics, present both challenges and opportunities for the development of new products and services.

4.1.1 The Group's approach to challenges and risk management

Risks related to the macroeconomic and regulatory environment

The global economic landscape continues to be shaped by persistent geopolitical tensions, easing inflationary pressures and subdued economic growth. Geopolitical risks arising from the Russia–Ukraine war and instability in the Middle East are affecting commodity flows, supply chains, market sentiment and international political stability. Inflationary pressures have eased, with interest rates declining as expected at the shorter end of the curve while rising slightly at the longer end. Weak demand and an uncertain economic outlook are slowing overall economic activity.

Financial markets have been influenced by continued uncertainty surrounding the pace of policy adjustments by the major central banks in 2024. Gradual changes in monetary policy, along with interest rate adjustments, have generated cautious optimism, tempered by the awareness that sudden geopolitical or regulatory shifts could rapidly alter the economic landscape. Despite this volatility, equity markets recorded significant growth throughout most of the year. For further details on macroeconomic trends and geopolitical risks, see Section 7. Macroeconomic environment and market trends, and for market risks, refer to Section 2.8 Risk management in the Accounting Report.

The Group's operations in the Health segment were significantly affected in 2024 by the regulatory framework for supplemental health insurance in Slovenia, introduced in 2023. While presenting short-term challenges, this regulatory change also created opportunities for innovation and sustainable growth within the complementary health insurance segment.

In this dynamic environment, the Group remains focused on resilience and strategic flexibility, closely monitoring external factors to effectively adapt to macroeconomic and geopolitical developments.

These policies are designed in the best interests of all beneficiaries, aligning with the objectives set out in insurance contracts. Investments are broadly matched to the nature and duration of insurance and reinsurance liabilities through a robust asset-liability management system, allowing for effective management of market risks while maintaining a balance between investment security and achieving an adequate return on investment portfolios. In managing the remaining assets, the Group strives to achieve an adequate return, while taking into account all assumed risks and maintaining a high overall credit rating across the whole investment portfolio.

To manage market risks, the investment policies of Group companies primarily focus on ensuring the security of assets covering future non-life and life insurance liabilities.

As part of the investment process, an effective monitoring system has been established to oversee the entire counterparty portfolio, ensuring timely risk management in the event of any deterioration in counterparties' credit quality.

Liquidity management remains a priority, with the Group meeting all obligations in a timely manner by maintaining adequate reserves and actively monitoring cash flows. Within the liquidity risk management system, investments in alternative assets are particularly closely monitored based on their specific characteristics.

Although inflationary pressures have eased, they continue to affect claims payments and operating expenses. The increase in claims payments is managed through pricing policy adjustments and regular monitoring and management of operating expenses to ensure profitability and resilience.

In identifying potential risks, scenarios involving a tightening of the macroeconomic conditions and a deterioration in financial market conditions are regularly assessed. These risks are managed by maintaining the resilience of investment strategies, ensuring operational flexibility and safeguarding liquidity against potential shifts in demand for insurance products.

Ongoing efforts are also made to ensure compliance with all existing and emerging regulatory requirements, while simultaneously exploring opportunities for innovation and new product development in a changing environment.

Geopolitical risks are expected to remain significant in the future. As such, the utmost care is exercised in underwriting insurance and reinsurance business in the international market and in the geographic diversification of investments and reinsurers, as detailed in Section 2.8 Risk management of the Accounting Report.

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4.1.2 Climate change and sustainable development

The physical risks of climate change, which have a significant impact on the insurance industry, are linked with the increasing severity and frequency of extreme weather events, affecting both social and economic structures. In the region where the Group operates, more frequent and severe floods, droughts and hailstorms are of particular long-term concern. Rising demand for insurance coverage presents opportunities for business expansion, alongside challenges in securing adequate reinsurance cover and implementing effective risk management strategies.

The transition to a low-carbon economy, driven by evolving policies, consumer behaviours and market sentiment, is significantly reshaping the business environment. Beyond operational risks, it introduces legal, reputational and technological risks, including the need to adapt business practices to reduce greenhouse gas emissions. For insurers, the indirect impact of emissions through investment and insurance portfolios can be more substantial than the impact of the direct carbon footprint. Transition risks may also lead to fluctuations in asset values, while shifts in environmental policies and consumer behaviour could significantly affect policyholders and insurance products. Investment and insurance activities play a key role in influencing issuers and policyholders, promoting a faster transition to sustainable business practices.

Global population growth and economic development contribute to the overconsumption of natural resources, increasing the importance of balanced social development to reduce inequalities and improve conditions for vulnerable groups. Rising temperatures may lead to higher mortality rates, the spread of infectious diseases, and an increased likelihood of new epidemics or pandemics. These factors could drive greater demand for life and health insurance while exacerbating broader climate change impacts on public health and social stability.

The insurance sector can enhance its resilience by proactively addressing climate change challenges and promoting sustainable development. By offering insurance solutions and other services to mitigate climate-related risks and adopting investment policies that support sustainability, the sector can meet evolving client needs while facilitating a stable transition to a more sustainable future.

The Group conducts its two core activities to create long-term economic, social and environmental value for stakeholders, wider society and the environment. By prioritising sustainable business, it fulfils its mission of Creating a Safer Future.

The Sustainable Development Policy defines the approach to achieving strategic sustainability ambitions by identifying impacts, risks and opportunities while integrating global best practices into business operations.

As part of the Group's own risk and solvency assessment (ORSA) process, particular attention is given to identifying and assessing climate risks. A qualitative assessment of assets and liabilities was conducted, highlighting the significance of climate risks for the investment segment in the medium and long term. Transition risks could become material over the medium or long term if legal and technological risks materialise. A stress scenario was carried out to assess physical risks within the insurance portfolio, which could already be material in the short term. Ensuring adequate client protection remains a priority, with reinsurance terms and conditions adjusted where necessary.

The Group is also examining biodiversity risks. Although linked to climate risks, these pose distinct and complex challenges. In the short term, they are not considered material; however, transition risks affecting assets and liabilities could become increasingly significant in the long term. Physical risks related to the investment portfolio remain negligible, as no major dependence on nature or natural resources has been identified. However, physical risks within the insurance portfolio are expected to grow in materiality over the long term.

To reduce policyholders' exposure to physical risks and insurance losses, priority is given to preventive solutions that mitigate climate risks. These include raising client awareness of climate change through tools such as the i.triglav digital platform, promoting insurance products for electric and hybrid vehicles, and offering tailored cover for renewable energy companies. Sustainability efforts also extend to claims settlement processes, where an environmentally responsible reuse and reduce approach is applied.

Sustainability-related risks also extend to the Group's reputation. Such risks may materialise over time, potentially affecting all key business processes, acquisition and retention of business and employees.

See Section 10 of the Sustainability Report for further details on the sustainability aspects of operations, including the double materiality assessment process.

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4.1.3 Digital transformation and cybersecurity

The digital transformation of the financial sector is driven by rapid technological advances, evolving client expectations and increasing competition. Insurers are prioritising seamless user experiences, flexible product offerings and secure operations when adopting new technological solutions and innovative business models. The use of advanced analytics, cloud services, the Internet of Things (IoT), cognitive computing, advanced mobile networks, process automation and robotics continues to expand. The integration of artificial intelligence (AI) into business processes is also advancing rapidly, influencing areas such as underwriting, claims management and client engagement.

Digitalisation presents significant opportunities for business optimisation, but also introduces new challenges and risks. The increasing interconnectedness of modern business ecosystems and reliance on external ICT service providers heighten vulnerabilities to business disruptions, data breaches and sophisticated cyberattacks. Strengthening digital resilience through robust cyber risk management, continuous testing and ongoing improvements to response plans is therefore essential to maintaining client trust and ensuring sustainable performance.

At the core of digital transformation is the need for highly skilled employees with expertise in areas ranging from AI-driven decisionmaking to maintaining a secure digital infrastructure. Many insurers are strengthening partnerships and alliances with specialised external providers to meet evolving requirements and access innovative technologies and expertise.

These trends are reflected in regulatory developments. In 2024, the European Parliament and the European Council adopted the Artificial Intelligence Act, introducing extensive requirements for providers and users of high-risk AI systems. The Digital Operational Resilience Act (DORA), which comes into force in January 2025, mandates comprehensive digital risk management and cybersecurity practices for financial institutions. Additionally, the first set of implementing acts for the EU Digital Identity Wallet was adopted. These regulatory developments will shape the future of the financial sector, influencing business practices and client protection.

The Group's approach to challenges and risk management

The Group continually adapts to changes in the digital landscape, accelerating the digitalisation of its operations and launching innovations that align with its strategic development goals. Solutions such as remote signing, video identification, multi-channel access, electronic identities and remote business have become integral to the Group's operations. The digitalisation process is continuously being expanded, enhanced and upgraded. See Section 4.4 Development activities (digital transformation) for more information on development activities.

The Group's risk management processes were upgraded with additional rules and controls to comprehensively and systematically identify, assess and manage the risks posed by new technological solutions.

New solutions are evaluated before being implemented and regularly tested in terms of security and business continuity. Alignment with clients' expectations and needs is ensured, with improvements based on client feedback. As part of efforts to innovate and enhance business process efficiency, tools that increase productivity, including AI, are deployed.

The Group cooperates with ICT service providers who are committed to high security standards and whose solutions comply with information security and data protection legislation. Tailored cyber protection insurance products and assistance services are offered to clients to better deal with the challenges of remote business and to reduce cyber threats.

The information security and security controls management system is continuously upgraded, and information security, business continuity plans and recovery procedures are regularly reviewed at various levels. Cyber risks are consistently incorporated into stress scenario tests, whereby information security is analysed and measures are taken to make further improvements.

Employees are regularly made aware of information security risks and trained on the safe use of IT. Their level of awareness is also regularly assessed, and additional measures and new approaches are implemented.

Information security is an essential aspect in the design of the Group's processes, information systems and controls. The Company reaffirmed its commitment by extending the ISO/IEC 27001:2022 certification for the information security management system.

See Section 11. Digital Operational Resilience Report for more information.

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4.1.4 Demographic and human resource risks

The Group's approach to challenges and risk management

Demographic trends and changing workforce dynamics continue to shape the insurance landscape. Ageing populations, lower fertility rates and the rising incidence of chronic diseases are placing sustained pressure on social welfare systems and healthcare services, affecting their long-term sustainability and influencing demand for insurance products. The evolving needs of clients, especially younger and more price-sensitive segments, call for more accessible, flexible and inclusive insurance solutions. Increasing awareness of the interplay between health, lifestyle and environmental factors is also prompting clients to seek tailored products and advice.

The advancing digital transformation and rapid technological developments, increasingly characterised by artificial intelligence, are driving the demand for skilled professionals, particularly those combining industry knowledge with digital skills. High employment rates and competitive labour market conditions often result in demand exceeding supply, leading to increased salary pressures and recruitment challenges. Flexible working conditions, continuous training and a strong corporate culture have become essential for maintaining a stable talent base, although these measures also contribute to higher labour costs.

Demographic pressures, changing client expectations and a shortage of professionals with digital skills elevate the importance of innovative products, effective talent management, and inclusive and accessible solutions.

Based on regular monitoring of demographic trends in all the Group's markets, insurance terms and calculation factors are adjusted, and opportunities for new insurance coverages and products are identified. By expanding the range of products, risks not sufficiently covered, or not covered at all, by the compulsory social insurance scheme are addressed. The Company is expanding its life, pension and health insurance product range, thereby increasing the security of clients at all stages of life. It is exposed to longevity risk in products with lifetime annuity or pension payouts. Especially long-term risk, which requires special attention, is managed by developing dynamic models of the policyholders' life expectancy and setting appropriate premium rates and provisions.

The changing insurance preferences and needs of younger generations offer opportunities for innovation and product adaptation. Young people's awareness of financial security is raised through new insurance products. Multi-channel offerings and innovative approaches in advertising and communication are used to engage them.

The social importance of healthcare continues to grow. The Group is working to expand its range of healthcare services, providing insured persons with timely, high-quality and more affordable healthcare services than its market competitors. The transformation from a traditional health insurance provider into a health partner is underway, offering clients comprehensive, lifelong services. By providing complementary health insurance products and services, the Group mitigates the risks associated with healthcare reform and the consequences of the termination of supplemental health insurance in Slovenia.

Employees play a key role in achieving the Group's ambitious strategic goals. The labour shortage in Slovenia provides an incentive to attract new employees with specialist skills and competences, particularly in IT, digitalisation, business intelligence, risk management, actuarial science and related fields. The risk of key staff leaving also remains a current concern.

Efforts to reduce the risk of unwanted turnover include quality working conditions, employee benefits and quality communication. The Group is strengthening its brand of a development-oriented and responsible employer and building up its recognisability as a desirable employer, being able to attract and motivate new highly qualified and highly skilled workers and young people. Young people are actively involved in various initiatives before they are hired through company scholarships, work placements, and company and business presentations. Substantial investments are made in the professional and general training of employees.

Where the nature of the work permits, hybrid work is provided and expanded for employees of Group companies. See Section 8.5 Investment in own-use real property and equipment for more information on the hybrid workplace.

Employee satisfaction within the Group is regularly monitored by measuring the organisational climate. According to this year's results, the Group is effectively adapting to changes, communication is open and effective, and the Group remains an attractive working environment. See Section 10.3.1 Employee care for more information about care for employees.

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4.2 Triglav Group Strategy for 2025 - 2030

Strategic risks, challenges and opportunities, as well as the needs of key stakeholders, are regularly monitored alongside ongoing assessments of the business model and strategy (see Section 10.1.3 Triglav Group's business model and value chain).

Based on the analysis of industry trends, challenges and opportunities in the business environment, as well as the expectations of key stakeholders, the business strategy for 2025–2030 was ambitiously upgraded at the end of 2024. In its implementation, the mission of Creating a Safer Future will continue to be pursued, while enhancing the profile of the Group as an international insurance and financial group, which is the vision.

Mission

Vision

Creating a Safer Future.

We are client-focused. We help our partners grow. We promote employee development. We are a profitable, stable and safe investment.

An international insurance and finance group.

The Triglav Group is the leading insurance and financial group in the Adria region, strengthening its dominant position in the region.

An international group, further strengthening its identity and visibility. Revenue from regional and international markets will exceed that of the Slovenian market.

Responsiveness, simplicity and reliability are reflected in daily operations.

  • A group that provides clients a sense of security. A reliable partner that ensures a simple (clear and understandable steps), fast, predictable (consistent procedure) and transparent experience.
  • An agile and efficient organisation that responds quickly to challenges and adapts to environmental changes. Processes are lean, simple, technologically advanced and cost-effective.
  • Committed to fostering a winning and entrepreneurial mindset.

Strategic activities

Insurance

Health Reinsurance

Asset management

Mutual funds and discretionary mandate services

Pension funds

2024 Key Highlights

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Highly profitable operations – value for shareholders

The Group aims to double earnings before tax to

EUR 250–300 million by 2030, while remaining a profitable, stable and safe investment for investors. While pursuing high profit targets, the Group is expanding the scale of its business, ensuring that profit sources are diversified both geographically and across products and services, thereby consolidating its market position.

The Group's dominant market position in the region allows it to leverage economies of scale and achieve greater process efficiencies, which will be further strengthened.

Cost-effectiveness will be improved by simplifying and centralising processes and continuing the digital transformation of operations.

The Group aims to maintain its high "A" credit rating as an insurance and financial group, confirming its sound risk management and capital adequacy. The target capital adequacy ratio has been set at 200–250% (see Section 9.2.1 Capital management for more details).

In the insurance business, the goal is a high level of profitability, with the aim of keeping the combined ratio for the Non-Life and Health segments below 95% throughout this strategy period.

Plans include growing earnings per ZVTG share at an average annual rate of 10% and the book value per share at 8%. The ambition is to achieve a net return on equity (ROE) of 12–13% by 2030.

In line with the dividend

policy (see Section 9.2.1 Capital management for more information), the Group plans to distribute approximately EUR 400 million in dividends to shareholders over this strategy period. At the same time, the target capital adequacy and favourable conditions for the Group's growth and development will be maintained.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Above-average growth in markets outside Slovenia

Increasing the Group's visibility as an international group, while maintaining a dominant market position in the Adria region. The focus is on improving the position in individual markets within the region.

In international markets outside the region, growth opportunities are pursued through reinsurance activities and new business models.

1.8

1.7

Ambitious growth in business volume and assets under management

Expansion of the business volume.

The Group aims for its business volume to reach EUR 2.5–3.0 billion in 2030, with assets under management exceeding EUR 10 billion.

Ambitious organic growth will be complemented with acquisition activities, should the right opportunities arise.

An outstanding client experience

Clients and their needs remain at the core of all activities, with a focus on delivering a consistently high-quality experience at every point of contact.

A diversified offering is adapted to clients' needs and expectations, ensuring their well-being and enhancing their quality of life. Client-specific requirements are considered, providing affordable, innovative, simple and comprehensive insurance and investment solutions.

An agile and efficient organisation

The Group operates as an agile organisation, adapting effectively to challenges and environmental changes, including climate change. This strengthens the Group's ability to reallocate, upgrade or phase out assets, adjust its product and service portfolio, and develop employees' core competencies. Its activities are focused on further process simplification.

An environment that attracts top talent

The Group brings together engaged, collaborative and entrepreneurial employees, who share common values and thrive in a creative, dynamic work environment.

The Group's organisational culture is designed for high efficiency and is aligned with its vision as an international group.

The Group has also set out its sustainable development ambitions, see Section 10.1.2.1 Strategic ambitions in sustainable development for more information.

2024 Key Highlights

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

4.3 Implementation of the Triglav Group strategy in 2024

Operating safely and profitably, the Group achieved a business volume of EUR 1.7 billion and met its target capital adequacy ratio. Dividends of EUR 39.8 million were paid to shareholders. Planned development activities in strategic insurance and asset management businesses were successfully delivered, reinforcing the Group's leadership in both the sector and the region.

By the end of 2024, the Group had met most of the objectives outlined in its strategy for the period to 2025. Adequate profitability was achieved, with return on equity exceeding the 10% target. Despite a shortfall in the Health segment, total business volume surpassed the strategic target in 2024, and the share of premium written outside Slovenia increased. Despite challenges arising from a changing business and operational environment, the Group maintained a high level of client satisfaction (NPS).

Client focus remained a key priority, with extensive development efforts dedicated to enhancing the user experience in underwriting and after-sales activities. Insurance products and services, as well as sales processes and channels, were further developed. The network of strategic partnerships was strengthened, and progress was made towards the digital transformation of processes.

The Group remained committed to its core values: responsiveness, simplicity and reliability. A visual employer brand identity was developed, and employees were encouraged to enhance their competences, adopt a healthy lifestyle and embrace the organisational culture. High scores were recorded on strategic indicators measuring satisfaction and engagement.

Through its sustainability-oriented operations, the Group reaffirmed itself as a developmentdriven environment for employees and business partners and a stable investment for investors.

Safe and profitable operations

Profitable operations and credit rating

Earnings before tax: EUR 159.0 million (earnings before tax from continuing operations: EUR 142.9 million (earnings before tax from discontinued operations: EUR 16.1 million).

  • Return on equity (ROE): 14%.
  • The dividend was paid out in line with the dividend policy, amounting to EUR 39.8 million, or EUR 1.75 gross per share.
  • Credit rating: The high »A« credit rating was reaffirmed.

Growth in business volume

  • Gross written premium: –2%; excluding the impact of the termination of supplemental health insurance, growth would have been 10%.
  • The Group's market share in the Slovenian insurance market: +1.3 percentage points.
  • Position in the Adria region: The largest insurance group in terms of written premium, with a 21.8% market share in 2023.

Capital adequacy and capital allocation

  • Prudent implementation of the capital management policy.
  • Financial strength and capital adequacy maintained within the target range.

Internal synergies and productivity growth

Gross written premium per Group insurance company employee: EUR 353 thousand.

An outstanding client experience

Development of service-oriented

business models New services and

digital transformation Advanced service-oriented

partnerships in business ecosystems to deliver an outstanding user experience. A centralised

communication entry point for clients.

insurance sales, training and digitalisation of partner engagement

processes. Improved step-by-step digital claims reporting. Development of an AI-based sales assistant to improve the user experience in online underwriting and remote claims reporting.

Client satisfaction and loyalty

A 20% increase in the number of users of the i.triglav digital office in the Company, and a 30% increase in the number clients who gave their consent to conduct business electronically. High client satisfaction

and an omni-channel

  • Development of
    • Technologically
    • claims reporting and settlement processes.

assistant enhanced with OpenAI technology, offering personalised communication for registered users.

Products and services

  • Development of new insurance products, upgrades to existing ones and an expanded range of coverages.
  • Renewal of Triglav Skladi's product range.

business models and Development of an organisational culture

Living the Triglav Group's values

  • Delivering on the Group's values when working with external and internal clients.
  • Promoting volunteering to strengthen and better integrate teams.
  • Commitment to a healthy lifestyle and mental health.

Employee acquisition, development and retention

  • Introduction of DNLA testing in Group companies.
  • Employer brand enhancement through youth engagement events and a sustained social media presence.
  • Group-wide standardisation of recruitment advertisements.
  • Initiatives to improve employee satisfaction and engagement.

Development of key and high-potential staff and a succession system

  • Identification of a new group of high-potential young employees within the Group, with participation in the Triglav International Business Academy (TIBA).
  • Identification of potential management successors.
  • Delivering targeted training to groups of key and high-potential staff and leaders.

Delivering on ESG strategic ambitions Effective reduction of paper and energy consumption while increasing the share of digital business. Integration of sustainability principles into mutual fund management.

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score with Group services (Net Promoter Score): 70. Total number of clients: Up by 6%. Comprehensive and client-tailored services Digitalisation, optimisation and automation of business processes Optimised online

  • approach Upgraded i.triglav digital office.
  • a hybrid sales channel.
  • modernised, AI-powered

The TRIA virtual

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4.4 Development activities

In 2024, client focus was further strengthened in alignment with the Group's existing strategy, particularly through the implementation of an advanced data management system, business process digitalisation and, where applicable, the implementation of artificial intelligence into business processes. These steps were taken to address the evolving needs of clients and partners, as well as emerging risks and regulatory requirements.

In both of the Group's core businesses, development activities were aimed at delivering an outstanding client experience at all stages of engagement.

Insurance

Business digitalisation and simplification, along with the customisation of products and services for clients and partners, are closely intertwined. The main new insurance solutions have been grouped according to their dominant features, directly supporting client focus.

Digitalisation of business with clients and partners.

For clients using only digital channels, the sales process was further digitalised to enhance the overall digital experience. For multi-channel users, the hybrid journey was improved to facilitate seamless transitions between channels.

In non-life insurance, a user-friendly, easy-to-understand and efficient experience was achieved with step-by-step claims reporting. A digitalised claims reporting process was established with selected partners in the Pets ecosystem.

The functionalities of the i.triglav digital office in Slovenia were extended to include risk assessment and claims settlement status for non-life claims. For clients in Croatia, the non-life insurance content on this increasingly popular platform was updated, and additional functionalities were added.

In Serbia, the digital presence of travel insurance was enhanced. In North Macedonia, non-life insurance business with financial institutions was digitalised, and an online platform for life insurance banking partners was launched. In Montenegro, an online bundled insurance tailored to the SME segment was offered.

Products and services have been simplified and adapted to meet evolving client needs.

Building on experience and results in building damage repair, collaboration with major partners modernised the report & repair process in the Home ecosystem. Non-life insurance products were upgraded with GIS-based flood risk classification. For motor vehicle insurance, the approach to commercial discounts for individuals was streamlined.

A new life insurance product, LAJF, was designed for young people, while the investment insurance option for older people was extended up to 75 years. Coverage for genetic analysis (DNA analysis) was updated in additional life insurance for critical illnesses.

In health insurance, self-pay dental services and Zdravnik 360 (Doctor 360) insurance products were upgraded, while new family medicine and paediatric concession service options were launched. The sales and underwriting process for group supplemental pension insurance was adapted to meet the needs of micro and small enterprises.

In the Adria region, products were redesigned, and several new ones were launched. In Croatia, comprehensive car insurance and home insurance products were upgraded. A new guaranteed-return endowment life insurance product for individuals was introduced, and a new product, Riziko plus (Risk Plus), was launched for financial institutions. In Serbia, a new non-life product, Triglav biznis (Triglav Business), was launched for entrepreneurs.

For life insurance clients, a new product

was linked to investment funds, and digital communication channels (email, SMS, Viber) were significantly expanded. Documentation for the sales network was simplified, and cooperation with non-life insurance sales centres was strengthened. In North Macedonia, new products, including overdraft insurance and photovoltaic insurance, were launched. A new contact centre for life insurance client support was established, and new coverage options were added to this insurance class. In Bosnia and Herzegovina, new communication channels (email, Viber) were introduced for non-life insurance clients, and travel insurance was renewed. For companies and other institutions, a new group term insurance for employees under life insurance was introduced. In Montenegro, a new contact centre and online bill payment system were launched.

Partnership development

In developing excellent relationships with external partners, greater emphasis was placed on training activities. Across all markets, high-quality user experiences were ensured when using IT solutions, and in some cases, specialised units were established to collaborate with partners.

A single integration layer was introduced for the sale of embedded insurance through consumer electronics stores and travel agencies. IT support for partner banking networks was modernised in several Group companies, with efforts focused on expanding and upgrading cooperation.

Cooperation with leasing service providers, roadworthiness test providers and vehicle importers was supported by new IT solutions, particularly those based on the new AdInsure 3.0 underwriting application.

2024 Key Highlights

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Digital transformation

A data-centric approach is at the core of the Group's digital transformation. It serves as a key foundation for strategic and operational decision-making, supported by a plan to systematically enhance the data competences of employees. Through the Triglav Group Data Analytics Platform Strategy, a holistic approach to data management and analysis was adopted, advancing analytical capabilities and reinforcing the foundation for the future integration of artificial intelligence into business processes.

Artificial intelligence (AI) was effectively integrated into new digital solutions for process automation. In the Client Contact Department, case handling was automated using solutions powered by Azure OpenAI and ChatGPT. The TRIA virtual assistant was upgraded with OpenAI technology to provide faster and more accurate responses to client enquiries regarding products and services, while retrieval-augmented generation (RAG) technology was employed for personalised communication with users.

The new cloud computing strategy defines the Group's strategic guidelines in this area. Core IT systems were upgraded to support new and upgraded products. Projects to centralise IT infrastructure continued, optimising the use and cost-efficiency of IT equipment while enhancing security.

The DRAJV app was further developed into a transactional and ecosystem platform, which includes policy overviews for motor vehicle and travel insurance, renewal and underwriting of new insurance policies, claims reporting, vehicle assistance requests, tow tracking and promotional functionalities.

The number of users of Triglav's digital platform increased by 20%, reaching over a quarter of a million. The number of clients consenting to electronic business transactions grew by 30%, directly supporting the Group's strategic objectives.

Asset management activity

Ethical,

compliance and security guidelines are strictly followed when embedding AI tools into daily operations. AI is used to complement internal processes and enhance

the client experience.

A significant shift in development was achieved with the renewal of Triglav Skladi's product range, both in mutual fund management and discretionary mandate services, offering new clients only products that adhere to sustainable principles.

An advanced and user-friendly mobile app was launched to provide a simpler and more comprehensive user experience, complementing the digital marketing and sales model for mutual funds. Additionally, the complex implementation of an IT solution for digital business process execution was completed, enhancing the

Watch a video about TRIA AI, the advanced assistant exploring artificial intelligence and demonstrating how its building blocks can enhance the client experience

Two core areas of focus include AI-powered tools and smart automation, which employees use to improve efficiency and accuracy in daily tasks. Additionally, customised AI solutions are developed and deployed to enhance the productivity of key processes and client interactions.

Since March 2024, Triglav Lab in Ljubljana has hosted TRIA, the first realistic Slovenian-speaking avatar – an advanced 3D AI assistant that interacts with users in real time. Its launch and operation have been dedicated to testing solutions and assessing the potential for applying such assistants in various environments in the future.

Mid-year, the TISA AI chat assistant was introduced into internal processes. Based on generative AI services and trained on proprietary text-based data, it provides sales staff with quick access to key insurance information and assists with administrative tasks. Its role will continue to expand. A seamless user experience for employees contributes to an outstanding overall client experience.

efficiency and transparency of fund management and discretionary mandate services.

Brand development

The strength, visibility and perception of the Triglav brand, which are regularly monitored, are key factors in the Group's market position and in seizing development opportunities. Key findings from the Group's 2024 general public reputation survey indicate that it ranks among the top five most reputable in the industry across nearly all of its markets. The Group ranks highest in Slovenia, followed by

Montenegro and North Macedonia. The business community's assessment of its performance and reputation remains high, and the brand excellence index is stable.

In 2024, a broad focus was placed on employer brand. Its visual identity was developed, and the brand was strengthened through a multi-channel approach and a broad range of activities for both employees and potential recruits. These included communication campaigns and events for employees (Festival of Ideas, Triglav International Business Academy), innovative events for students and targeted recruits (Top Experience – exploring AI in insurance) and other initiatives, such as popular team-building programmes incorporating corporate social responsibility. See Section 10. Sustainability report for more information.

business plans in 2024 4.6 The Triglav Group's plans for 2025

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4.5 Implementation of the Triglav Group's business plans in 2024

The Group achieved earnings before tax of EUR 159.0 million

(EUR 142.9 million from continuing operations), exceeding both the original target (EUR 100–120 million) and the upwardly revised annual profit guidance issued during the year ( EUR 130–150 million). The result reflects strong business performance and the impact of one-off events (see Section 8. Operations of the Triglav Group and Zavarovalnica Triglav for more information).

The total business volume amounted to EUR 1.7 billion, exceeding the target of approximately EUR 1.6 billion. It was 1% lower than the previous year due to the termination of supplemental health insurance in Slovenia. As a result of this termination, premium written in the Slovenian market declined by 13%, whereas the international market recorded 21% growth and other markets in the Adria region saw a 9% increase. Growth was achieved in most insurance markets and across all business segments, except in Slovenia and Bosnia and Herzegovina, and in the Health segment.

The combined ratio for the Group's Non-Life and Health segments was a favourable 93.6%, outperforming projections. It decreased by 8.3 percentage points year-on-year due to an improvement in the claims ratio. See Section 8. Operations of the Triglav Group and Zavarovalnica Triglav for more information.

The credit rating agencies S&P Global and AM Best reaffirmed the Group's "A" credit rating with a stable medium-term outlook, which was upgraded to positive in December by S&P Global. Achieving an "A" credit rating ensures an appropriate competitive position of the Group in insurance, reinsurance and financial markets as it confirms its financial strength, stability and sound performance. See Section 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav for more information.

4.6 The Triglav Group's plans for 2025

The year 2025 marks the first year of a new strategy period to 2030, during which the Triglav Group has set high ambitions for profitable, safe and sustainable operations (see Section 4.2 Triglav Group Strategy for 2025–2030 for further information).

It is estimated that the Group's operations will be primarily influenced by macroeconomic conditions, financial market developments, reinsurance cover, market situation and the development of the potential of its markets. Under the projected conditions for the year, earnings before tax are expected to reach EUR 130–150 million in 2025 (with net earnings ranging from EUR 100 million to EUR 120 million).

In the insurance business, the goal is to maintain a high level of profitability, with the combined ratio for the Non-Life and Health segments remain below 95%.

The Group will expand its business volume, while diversifying and growing in markets outside Slovenia, in alignment with strategic ambitions. The Group's total business volume is projected to exceed EUR 1.8 billion in 2025. In asset management, an increase in assets under management (AUM) is planned. Ambitious organic growth will be complemented by prudent acquisitions.

The aim is to maintain the high "A" credit rating, reaffirming sound risk management and capital adequacy, while striving to remain a stable, safe and profitable investment for investors.

5. Corporate Governance Statement

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  • The three-line system, comprising corporate governance and the management of key functions and business lines, plays a crucial role in the effective management and control of subsidiaries.
  • The General Meeting of Shareholders approved the Remuneration Policy of Zavarovalnica Triglav d.d.
  • The President of the Management Board, Andrej Slapar, along with Management Board members Uroš Ivanc and Tadej Čoroli, commenced a new five-year term of office.
  • Barbara Nose and Rok Ponikvar were appointed new Supervisory Board members, shareholder representatives.

5.1 Governance policy

Zavarovalnica Triglav's governance system plays the main role in the implementation of the business strategy and effective risk management on which it is based. The main governance guidelines take into account the set long-term objectives. They are defined in the Governance System and Policy of Zavarovalnica Triglav d.d., which is adopted by the Management Board and the Supervisory Board. It is published on SEOnet, the Ljubljana Stock Exchange information system, and on the Company's website (www.triglav.eu).

5.2 Statement of compliance with the Slovenian Corporate Governance Code

In its operations, Zavarovalnica Triglav abided by the Corporate Governance Code (hereinafter: the Code), which was adopted on 9 December 2021. The Code is published on the Ljubljana Stock Exchange's website in Slovenian and English. Zavarovalnica Triglav's statement of compliance with the Corporate Governance Code for 2024 is available on SEOnet and Zavarovalnica Triglav's official website.

Zavarovalnica Triglav adheres to the provisions of the Code. For well-grounded reasons, the Company deviated from or did not comply with the following provisions of the Code:

Points 4.1 to 4.3, which refer to the Diversity Policy:

In addition to the Companies Act, the Company and its management and supervisory bodies are subject to the Insurance Act, which requires that the members of the management and supervisory bodies and the bodies as a whole meet the fit and proper criteria for insurance companies. When Management Board and Supervisory Board members are appointed, efforts are made to achieve as much diversity as possible. The Company's Diversity Policy sets out that if several candidates meet the fit and proper criterion, the candidate who will contribute more to greater diversity of the Management Board will have priority. The diversity of expertise and experiences is set out in greater detail in the Fit and Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d. The Diversity Policy requires that both genders are represented on the management and supervisory bodies. The gender balance within the Company, appropriate to the size of its bodies, objectives and influence on the selection procedures for members of the management and supervisory bodies, as well as other Company procedures, is not predetermined. Primarily, the fitness and propriety of the bodies as a whole must be ensured, in accordance with strict legislative requirements mandating that both individual members and the bodies collectively meet specific fit and proper criteria for insurance undertakings. The Diversity Policy does not set goals for each aspect of diversity and for each body separately, but it does determine the method to ensure diversity as mentioned above and, as a result, has a direct impact on personnel procedures and other processes in the Company.

Point 5.6, which refers to an external assessment of the appropriateness of the Corporate Governance Code by an independent institution:

The Corporate Governance Statement, as part of the annual report, is reviewed annually by an independent external auditor. Zavarovalnica Triglav is a regulated company, whose operations are supervised by the Slovenian Insurance Supervision Agency. One of the key functions at the Company is internal audit, which not only performs continuous and comprehensive supervision of the Company's operations but also verifies and assesses whether the processes of risk management, control procedures and management of the Company are appropriate.

Point 16.4, which stipulates that at least once in every three years the Supervisory Board should ensure an external assessment in which it cooperates with an independent institution or external experts:

Each year, the Supervisory Board, with the assistance of competent departments, carries out assessment of its work and the work of its committees and draws up a report, which it considers carefully, and adopts an action plan of measures to improve its performance. At its discretion, the Supervisory Board also performs external assessment by cooperating with relevant external experts. The last such assessment was performed in February 2023.

Point 21.6, which refers to the prior approval of the Supervisory Board before the appointment of the members of the Management Board to the management or supervisory bodies in other companies:

Pursuant to the resolution of the Supervisory Board, Management Board members do not require the prior approval of the Supervisory Board for their appointment to the management or supervisory bodies of Zavarovalnica Triglav's direct and indirect subsidiaries and associates. However, the Management Board members promptly inform the Supervisory Board in writing about their appointment in accordance with point 1 of paragraph two of Article 62 of the Insurance Act (ZZavar-1).

In its operations, the Company abides by the principles of the Insurance Code, available on the website of the Slovenian Insurance Association (www.zav-zdruzenje.si).

The Company also has its own code, published on its website, which defines its fundamental values and business principles in order to achieve its business objectives, strategic guidelines and competitive advantages in a fair and transparent manner and in compliance with the law and ethics.

The Statement of compliance with the Slovenian Corporate Governance Code is available both on SEOnet and the Company's official website.

Corporate Governance Code 5.3 Management bodies of Zavarovalnica Triglav

5.4 Governance and management of subsidiaries 5.5 External and internal audit 5.6 Internal controls and risk management in relation to financial reporting 5.7 Notes on the takeover legislation 5.8 Disclosure of existence of any agreements or

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5.3 Management bodies of Zavarovalnica Triglav

The Company has a two-tier governance system in place. Its governance bodies are as follows:

General Meeting of Shareholders, Management Board

and Supervisory Board. They operate in compliance with the primary and secondary legislation, the Articles of Association of Zavarovalnica Triglav d.d. (hereinafter: the Articles of Association) and adopted rules of procedure. Zavarovalnica Triglav's Articles of Association are published on its official website. The most important documents (Articles of Association of Zavarovalnica Triglav d.d., the Governance System and Policy of Zavarovalnica Triglav d.d. and similar) defining the governance, controls and operating procedures are published at https://www.triglav.eu/en/about-us/zavarovalnica-triglav/documents.

5.3.1 General Meeting of Shareholders

The shareholders of Zavarovalnica Triglav exercise their rights at the General Meeting of Shareholders, which is convened at least once a year, by the end of August at the latest. It may also be convened in other circumstances provided by law and the Articles of Association, and when it is in the interest of the Company.

The powers and operation of the General Meeting of Shareholders are set out in the Companies Act and the Articles of Association.

The holder of a Zavarovalnica Triglav share has the right to:

  • one vote at the General Meeting of Shareholders,
  • proportional dividends from the profit intended for the dividend payment and
  • a proportional share from the remaining bankruptcy or liquidation estate in the event of bankruptcy or liquidation.

All shareholders who are entered in the share register managed by KDD – Centralno klirinška depotna družba d.d. not later than by the end of the seventh day before the date of the General Meeting of Shareholders have the right to attend the General Meeting. They may exercise their voting right provided that they register their attendance not later than by the end of the fourth day before the date of the General Meeting of Shareholders.

The rights and obligations attached to the shares as well as the notes on the restriction of transfer of shares and on reaching a qualifying holding are described in Section 6.2 Equity. See the Insurance Act for further details.

In accordance with the Financial Instruments Market Act, the following three shareholders of Zavarovalnica Triglav held a qualifying holding as at 31 December 2024:

  • Zavod za pokojninsko in invalidsko zavarovanje Slovenije (Institute of Pension and Invalidity Insurance of Slovenia; hereinafter: ZPIZ) is the direct holder of 7,836,628 shares or 34.47% of the Company's share capital. Its stake in 2024 remained unchanged. On behalf and for the account of ZPIZ, the shareholder's rights are exercised by Slovenski državni holding d.d. (hereinafter: SDH).
  • SDH is the direct holder of 6,386,644 shares or 28.09% of the Company's share capital. Its stake remained unchanged in 2024.
  • Erste Group Bank AG a fiduciary account, Vienna, holds 1,543,798 shares or 6.79% of the Company's share capital, up 0.08 percentage points on the previous year.

According to the data available, as at the reporting date Zavarovalnica Triglav had no other shareholders whose interests exceeded 5.00% of the share capital, nor any issued securities that would grant their holders special control rights.

General Meeting of Shareholders in 2024

In 2024, the General Meeting of Shareholders of Zavarovalnica Triglav convened once, at the 49th General Meeting held on 4 June 2024. The total number of shares and voting rights represented was 17,389,110 or 76.70% of all shares. The shareholders took note of the following documents:

  • Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023, including the independent auditor's report;
  • Annual Internal Audit Report for 2023;
  • report of the Supervisory Board of Zavarovalnica Triglav d.d. on the Verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023;
  • opinion given by the Supervisory Board on the Annual Internal Audit Report for 2023.

The General Meeting of Shareholders approved the Remuneration Policy of Zavarovalnica Triglav d.d. and adopted the Remuneration Report of Zavarovalnica Triglav d.d. for 2023.

Two-tier governance of Zavarovalnica Triglav

Corporate Governance Code 5.3 Management bodies of Zavarovalnica Triglav

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

The shareholders adopted a resolution on the following distribution of the accumulated profit of EUR 87,854,038.93 as at 31 December 2023:

  • A part of accumulated profit in the amount of EUR 39,786,509.00 shall be allocated for dividend payments. The dividend of EUR 1.75 gross per share shall be paid to the shareholders appearing in the share register as at 18 June 2024. As at 19 June 2024, the Company provided funds for the payment of all dividends to the account of KDD – Centralno klirinška depotna družba d.d.
  • The distribution of the remaining accumulated profit of EUR 48,067,529.93 shall be decided in the next few years.

The shareholders granted a discharge for the 2023 financial year to both the Management Board and the Supervisory Board of Zavarovalnica Triglav.

Due to the expiry of Igor Stebernak's term of office and Jure Valjavec's resignation, Barbara Nose and Rok Ponikvar were appointed new Supervisory Board members, shareholder representatives.

5.3.2 Management Board

The Management Board manages and governs the Company independently and at its own responsibility, and presents and represents the Company without limitations. In legal transactions, the Company is always jointly presented and represented by two members of the Management Board, one of whom is its President.

In line with the Solvency II Directive, all persons who manage an insurance undertaking must have adequate professional qualifications (fit) and be appropriate to perform this function, i.e. be of good reputation and integrity (proper). The fit and proper assessment of the Management Board members is carried out based on national legislation and internal regulations.

Any person fulfilling the requirements stipulated by the Insurance Act, the Companies Act and the applicable documents of the Company may be appointed to the Management Board as its President or member. The fit and proper criteria applying to individual Management Board members and the Management Board as a collective body are clearly defined in the Fit and Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d., which sets out the fit and proper assessment procedure for Management Board members to be performed before the appointment, periodically, extraordinarily or after the appointment of an individual Management Board member. With respect to the latter, the Supervisory Board takes into account the diversity of knowledge and competences, which not only allow comprehensive functioning of the Management Board,

but also contribute to an appropriate variety of skills, knowledge and experience for professional management of the Company. The members are required to together possess the relevant knowledge and experience relating to insurance and financial markets, the business strategy and business models, governance systems, financial and actuarial analyses, risk management, and the regulatory and legal environment in which the Company operates.

In line with the Fit and Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d., a periodic fit and proper assessment was carried out in 2024 for Management Board members Andrej Slapar, Marica Makoter, Blaž Jakič, Tadej Čoroli and Uroš Ivanc, and the Management Board as a collective body, as well as an extraordinary assessment of a Management Board member. All assessments confirmed that the Management Board members were deemed fit and proper for their positions, and the Management Board as a collective body was deemed fit and proper to manage the Company with prudence and due diligence.

The Diversity Policy is also taken into account when appointing an individual member of the Management Board. Its goal is not only to achieve representation of both genders and various age groups but also to ensure the complementarity and diversity of the Management Board, while the proportion of the underrepresented gender among the members of the Company's management and supervisory bodies has yet to be determined. The appointment of each Management Board member considers their qualifications, experience and knowledge, as outlined in the Fit and Proper Policy. If several candidates meet the fit and proper criterion, the candidate who will contribute more to greater diversity of the Management Board will have priority. One of the important goals is that both genders are represented in the management body. A comprehensive approach enables prudent and careful management of the Company, thus achieving strategic objectives and ensuring long-term values for all key stakeholders. Once the share of the underrepresented gender is determined, the Company will proceed with implementing appropriate measures to achieve the desired balance. In 2024, the gender representation ratio in the Management Board was last 4:1, with the underrepresented gender accounting for 20%.

On 29 November 2023, the Supervisory Board reappointed Andrej Slapar as the President of the Management Board for a new fiveyear term of office. He has held this position since May 2013; his new five-year term of office began on 13 November 2024. The Supervisory Board agreed with the President of the Management Board's proposal and reappointed Uroš Ivanc and Tadej Čoroli as Management Board members. They took office in July 2014. The new five-year term of office of Uroš Ivanc commenced on 16 July 2024 and that of Tadej Čoroli on 31 July 2024.

Composition and appointment of the Management Board

In accordance with the Company's Articles of Association, the Management Board may have no less than three and no more than six members, one of whom one is the president. The number of the Management Board members, their powers, the manner of representation and presentation and the transfer of the Management Board's authorisations are determined by the Supervisory Board in the Management Board Rules.

The Management Board is appointed by the Supervisory Board. The term of office of individual Management Board members is up to five years, with the possibility of reappointment without limitation. Zavarovalnica Triglav has one Worker Director, who is a member of the Management Board.

The appointment or recall of an individual member or all members of the Management Board is proposed to the Supervisory Board by the President of the Management Board. Any individual member or President of the Management Board may be dismissed by the Supervisory Board if legal grounds for their dismissal have been established.

5.3.2.1 Management Board's powers to increase the share capital

In accordance with the Company's Articles of Association, the Management Board is authorised to increase the share capital of Zavarovalnica Triglav by up to EUR 14,740,278.36 through new shares issued for cash contributions within five years of 28 May 2021. The issue of new shares, the amount of capital increase, the rights attached to the new shares and the conditions for issuing new shares are decided upon by the Company's Management Board with the consent of the Supervisory Board. Following a share capital increase, the Supervisory Board is authorised to amend the Company's Articles of Association.

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5.3.2.2 Presentation of the Management Board, its functioning and powers

Composition of the Management Board in 2024

First and
last name		 Function Area of work in the Management Board
(as at 31 December 2024)		 Start of term
of office
(the first)		 End of term
of office		 Gender Nationality Year of
birth		 Education Professional profile Membership in the supervisory and/or
management bodies of other companies
Andrej Slapar President Manages and directs the work of the Management
Board and head office support departments (Internal
Audit Department and Corporate Communication
Department). In charge of Corporate Accounts Division,
Non-Life Insurance Division, Triglav Group Subsidiary
Management Division (excluding the subsidiaries
outside Slovenia), Corporate and Legal Affairs Division
and Human Resource Management Division. Also
responsible for arbitration and Nuclear Pool, as well as
for the drawing up and implementation of the strategy
of Zavarovalnica Triglav and the Triglav Group.		 22 May 2013 13 November
2029		 Male Slovenian 1972 LL.B. Management, strategic management,
commercial law, insurance and
reinsurance, actuarial science
Uroš Ivanc Member In charge of Non-Life Insurance Actuarial Department,
Life Insurance Actuarial Department, Accounting
Division, Finance and Controlling Division, excluding
Investment Department, Triglav Group Subsidiary
Management Division – the subsidiaries outside
Slovenia and two head office support departments
– Investment Department and Outward Reinsurance
Department. Also responsible for mergers and
acquisitions (M&A), investor relations (IR) and relations
with credit rating agencies, as well as for environmental,
social and corporate sustainable development
(ESG) activities.		 14 July 2014 16 July 2029 Male Slovenian 1975 MSc in Business and
Organisation		 Management and organisation,
strategic management, insurance,
financial management, financial
markets and analyses, asset
management, actuarial analyses and
risk management		 ƒ Trigal, upravljanje naložb in svetovalne
storitve d.o.o.*
ƒ Triglav INT d.o.o.
Tadej Čoroli Member In charge of Non-Life Insurance Claims Division,
Insurance Sales Division and Digital Operations and
Client Experience Division.		 29 July 2014 31 July 2029 Male Slovenian 1975 LL.M. Management, strategic management,
commercial law, insurance, marketing		 ƒ Pozavarovalnica Triglav Re d.d.
ƒ Triglav, Upravljanje nepremičnin d.o.o.
(from 19 June 2024)
Marica Makoter Member and Worker Director Represents the workers' interests as set out in the
Worker Participation in Management Act. In charge of
Change and Project Portfolio Management Department
and Back Office Division. Also responsible for the
Strategic Sourcing Department, Compliance Office
and Marketing Department (head office support
departments).		 21 December
2011		 23 December
2026		 Female Slovenian 1972 LL.B. Management, strategic management,
commercial law, insurance,
human resources and organisation,
worker representation		 ƒ Triglav Skladi d.o.o.
Blaž Jakič Member In charge of Life Insurance Division, IT Division, Health
Insurance Division, Back Office Division, Digital Platform
and Business Intelligence Division and two head office
support departments – Risk Management Department
and Bancassurance Section. He is responsible for
money laundering prevention.		 2 March 2023 2 March 2028 Male Slovenian 1982 BSc in Economics Insurance, finance, accounting,
business strategy and business
models, governance systems,
actuarial analyses, risk management		 ƒ Triglav, pokojninska družba d.d.
ƒ Triglav Skladi d.o.o.
ƒ Diagnostični center Vila Bogatin d.o.o., Bled

* A member of the company's advisory board.

Andrej Slapar took over the position of the President of the Management Board eleven years ago; in 2024 all members of the Management Board together performed their function for an average of 8.75 years.

2024 Key Highlights

5.3 Management bodies of Zavarovalnica Triglav 5.4 Governance and management of subsidiaries 5.5 External and internal audit 5.6 Internal controls and risk management in relation to financial reporting 5.7 Notes on the takeover legislation 5.8 Disclosure of existence of any agreements or

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5.3.3 Supervisory Board

The Company's conduct of business is supervised by the Supervisory Board. In line with the Articles of Association, the Supervisory Board is composed of nine members: six shareholder representatives and three employee representatives. As at 31 December 2024, it consisted of eight members, six shareholder representatives and two employee representatives. The term of office of the Supervisory Board members is four years, and they can be re-elected without a term limit.

Shareholder representatives are elected by the General Meeting of Shareholders and employee representatives by the Company's Works Council. The Chairman and Vice Chairman of the Supervisory Board are elected from among its members representing shareholders. The appointment and dismissal of the Supervisory Board members is made in accordance with the applicable legislation and Company regulations. The General Meeting of Shareholders may dismiss any elected Supervisory Board member before the expiry of their term of office, while each Supervisory Board member may resign from their position under the conditions and in the manner laid down by the Articles of Association.

The term of office of Igor Stebernak, a Supervisory Board member, shareholder representative, expired on 3 June 2024. The term of office of Jure Valjavec, a Supervisory Board member, shareholder representative, expired on 1 September 2024 following his resignation. The General Meeting of Shareholders appointed Barbara Nose and Rok Ponikvar as new Supervisory Board members – shareholder representatives, with their four-year terms of office commencing on 4 June 2024 and 2 September 2024, respectively.

According to the Solvency II Directive requirements, the Supervisory Board members must have adequate professional qualifications (fit) and be appropriate to perform this function, i.e. be of good reputation and integrity (proper). Their fit and proper assessment is carried out based on national legislation and internal regulations, especially the Fit and Proper Policy.

Fit and proper assessment is made before the appointment, periodically, extraordinarily or after the appointment of an individual Supervisory Board member. In line with this policy, a fit and proper assessment of the candidates for Supervisory Board members – shareholder representatives and of the Supervisory Board as a collective body, taking into account the candidates assessed, was carried out before the appointment of new members also in 2024. The two newly appointed Supervisory Board members were assessed as fit and proper to perform this function.

In October 2024, a periodic fit and proper assessment was carried out for all Supervisory Board members and the Supervisory Board as a collective body, comprising Andrej Andoljšek, Tomaž Benčina, Monica Cramér Manhem, Tim Umberger, Rok Ponikvar, Barbara Nose, Aleš Košiček and Janja Strmljan Čevnja. All individual members and the Supervisory Board as a collective body were assessed as fit and proper.

In October 2024, the periodic fit and proper assessment of the Audit Committee's external member Luka Kumer was carried out, who is an independent expert qualified in accounting and/or auditing. It was established that he continues to be fit and proper to perform the duties of the Audit Committee's external member.

In the same month, a preliminary fit and proper assessment was conducted for Katarina Sitar Šuštar, the candidate for the new external member of the Audit Committee, an independent expert qualified in accounting and/or auditing. The candidate was assessed as fit and proper to perform this function.

In assessing its composition and performance in accordance with the Insurance Act and the Companies Act, the Supervisory Board takes into account that all members possess the relevant knowledge, skills and experience relating to insurance and financial markets, the business strategy and business models, governance systems, financial and actuarial analyses, risk management, and the regulatory and legal environment in which the Company operates. In addition to the above, if several candidates meet the fit and proper criterion, the Diversity Policy (diversity in terms of gender, experience in international markets, etc.) is taken into account in the appointment of new members. The goal is to ensure complementarity and diversity in the Supervisory Board by taking into account qualifications, experience and knowledge defined in the Fit and Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d. This enables prudent and careful supervision of the Company, thereby achieving strategic objectives and ensuring long-term values for all key stakeholders, representation of both genders and representation of different age groups. When appointing Supervisory Board members, the fit and proper requirements stipulated by law and the regulator are primarily taken into account with respect to both an individual Supervisory Board member and the Supervisory Board as a whole. Although the proportion of the underrepresented gender among the members of the Company's management and supervisory bodies has yet to be determined, appropriate measures are already being implemented to achieve diversity and gender balance. These principles were also applied in nomination procedures for appointing new Supervisory Board members in 2024, resulting in a gender representation ratio of 5:3, with the proportion of the underrepresented gender increasing to 37.5% (25.0% in 2023).

5.3.3.1 Powers of the Supervisory Board

The powers and operation of the Supervisory board are set out by the applicable legislation, the Company's Articles of Association and the Rules of Procedure of the Supervisory Board (available on the Company's website). In addition, the Supervisory Board gives consent to the decisions of the Management Board where the value or an investment exceeds the amount set out in the Rules of Procedure of the Supervisory Board, i.e. in the event of:

  • The founding of limited companies in Slovenia and abroad;
  • The acquisition or sale of Zavarovalnica Triglav's participating interests in domestic or foreign companies, except in the case of participating interests for which the conventional portfolio management approach is used;
  • The issue of debt securities and long-term borrowing from domestic or foreign banks;
  • The acquisition and sale of real property and investment in real property of Zavarovalnica Triglav.

In accordance with the law and the Rules of Procedure, the Supervisory Board holds at least one session per quarter, or more if necessary.

First and last name Function Start of term
of office
(the first)		 End of term
of office		 Attendance of sessions of the
Supervisory Board / total number
of Supervisory Board sessions		 Gender Nationality Year of birth Education Professional profile Independence pursuant to
the Slovenian Corporate
Governance Code		 Existence of
conflict of
interest in 2024		 Membership in the supervisory and/or
management bodies of other companies while
serving on the Supervisory Board in 2024		 Membership in Supervisory Board
committees		 Function in Supervisory Board
committees		 Attendance of meetings of Supervisory
Board committees / total number of
meetings of Supervisory Board committees
Andrej Andoljšek Member 13 June 2017 13 June 2021 9 of 9 Male Slovenian 1970 BSc in Economics Financial and general management, financial YES NO Sava d.d. Strategy Committee Member 3 of 3
Vice Chairman 21 June 2017 17 August 2020 markets and analyses, banking, corporate
governance, business and financial restructuring		 Nomination Committee Chairman from 29 November 2023
to 3 June 2024		 5 of 5
Chairman 18 August 2020 13 June 2021 of companies
Member
Chairman		 14 June 2021
18 June 2021		 14 June 2025
14 June 2025		 Appointment and Remuneration Committee Member 7 of 7
Tim Umberger Member 7 June 2023 9 July 2027 5 of 9 Male Slovenian 1980 MSc in Economics Financial markets and analyses YES NO Gorenjska banka d.d. Audit Committee Member 6 of 6
Vice Chairman 10 July 2024 7 June 2027
Strategy Committee Member until 17 September 2024 2 of 3
Chairman from 18 September 2024 1 of 3
Nomination Committee Chairman from 19 November 2024 /
Appointment and Remuneration Committee Member 1 of 7
Barbara Nose Member 4 June 2024 4 June 2029 3 of 9 Female Slovenian 1964 BSc in Economics Finance and insurance markets, strategy and
business model, risk management, controlling,
accounting and audit, corporate governance		 YES NO Luka Koper d.d.
Pošta Slovenije d.o.o.		 Strategy Committee Member 2 of 3
Audit Committee Chairwoman from 10 July 2024 2 of 6
Risk Committee Member 1 of 1
Tomaž Benčina Member 14 June 2021 14 June 2025 9 of 9 Male Slovenian 1965 BSc in Economics and BSc in Metallurgy Financial markets, business strategy and business YES NO Luka Koper d.d. Appointment and Remuneration Committee Chairman 7 of 7
models, governance system, financial analyses Strategy Committee Member 3 of 3
Monica Cramér Manhem Member 7 June 2023 7 June 2027 5 of 9 Female Swedish 1959 BSc in Economics International regulatory and other legal YES NO CCR Re, Francija; Sompo Int'l Lux Strategy Committee Member 3 of 3
requirements, financial and actuarial analyses Risk Committee Chairman 1 of 1
Rok Ponikvar Member 2 September 2024 2 September 2029 2 of 9 Male Slovenian 1972 BSc in Economics Financial markets, governance system, financial
analyses, business strategy and business models		 YES NO Loterija Slovenije d.d. Strategy Committee Member from 2 September 2024 2 of 3
Risk Committee Member from 2 September 2024 1 of 1
Nomination Committee Member from 19 November 2024 /
Igor Stebernak Chairman 18 August 2016 2 June 2020 5 of 9 Male Slovenian 1968 BSc in Electrical Engineering, MBA Banking, insurance, strategic management, YES NO / Audit Committee Member 3 of 6
Member 3 June 2020 3 June 2024 financial markets and analyses, controlling,
accounting and business process reengineering		 Chairman from 3 June 2024
Vice Chairman 30 August 2023 3 June 2024 Strategy Committee Member until 3 June 2023 1 of 3
Jure Valjavec Member 14 June 2021 1 September 2024 9 of 9 Male Slovenian 1975 Master of Science Business strategy and business models, YES NO / Appointment and Remuneration Committee Member until 1 September 2024 5 of 7
governance system Nomination Committee Member from 29 November 2023 to
3 June 2024		 5 of 5
Strategy Committee Chairman until 1 September 2023 1 of 3
Aleš Košiček Member 11 July 2023 10 July 2027 4 of 9 Male Slovenian 1966 MSc in Business and Organisation Insurance, governance systems, business strategy YES NO / Audit Committee Member 6 of 6
and business models, financial analyses in the Nomination Committee Member until 3 June 2024 5 of 5
context of Zavarovalnica Triglav's operations Member from 19 November 2024 /
Appointment and Remuneration Committee Member from 2 September 2024 1 of 7
Strategy Committee Member from 18 September 2024 1 of 7
Janja Strmljan Čevnja Member 11 July 2023 10 July 2027 4 od 9 Female Slovenian 1969 LL.B. Regulatory and other legal requirements that YES NO / Strategy Committee Member 3 of 3
apply to Zavarovalnica Triglav Risk Committee Member 1 of 1
Andrej Andoljšek Member 13 June 2017 13 June 2021 9 of 9 Male Slovenian 1970 BSc in Economics Financial and general management, financial YES NO Sava d.d. Strategy Committee Member 3 of 3
Vice Chairman 21 June 2017 17 August 2020 markets and analyses, banking, corporate
governance, business and financial restructuring
of companies		 Nomination Committee Chairman from 29 November 2023 5 of 5
Chairman 18 August 2020 13 June 2021 to 3 June 2024
Member 14 June 2021 14 June 2025 Appointment and Remuneration Committee Member 7 of 7
Chairman 18 June 2021 14 June 2025
Tim Umberger Member 7 June 2023 9 July 2027 5 of 9 Male Slovenian 1980 MSc in Economics Financial markets and analyses YES NO Gorenjska banka d.d. Audit Committee Member 6 of 6
Vice Chairman 10 July 2024 7 June 2027 Strategy Committee Member until 17 September 2024 2 of 3
Chairman from 18 September 2024 1 of 3
Nomination Committee Chairman from 19 November 2024 /
Appointment and Remuneration Committee Member 1 of 7
Barbara Nose Member 4 June 2024 4 June 2029 3 of 9 Female Slovenian 1964 BSc in Economics Finance and insurance markets, strategy and YES NO Luka Koper d.d. Strategy Committee Member 2 of 3
business model, risk management, controlling, Pošta Slovenije d.o.o. Audit Committee Chairwoman from 10 July 2024 2 of 6
accounting and audit, corporate governance Risk Committee Member 1 of 1
Tomaž Benčina Member 14 June 2021 14 June 2025 9 of 9 Male Slovenian 1965 BSc in Economics and BSc in Metallurgy Financial markets, business strategy and business YES NO Luka Koper d.d. Appointment and Remuneration Committee Chairman 7 of 7
models, governance system, financial analyses Strategy Committee Member 3 of 3
Monica Cramér Manhem Member 7 June 2023 7 June 2027 5 of 9 Female Swedish 1959 BSc in Economics International regulatory and other legal YES NO CCR Re, Francija; Sompo Int'l Lux Strategy Committee Member 3 of 3
requirements, financial and actuarial analyses Risk Committee Chairman 1 of 1
Rok Ponikvar Member 2 September 2024 2 September 2029 2 of 9 Male Slovenian 1972 BSc in Economics Financial markets, governance system, financial YES NO Loterija Slovenije d.d. Strategy Committee Member from 2 September 2024 2 of 3
analyses, business strategy and business models Risk Committee Member from 2 September 2024 1 of 1
Nomination Committee Member from 19 November 2024 /
Igor Stebernak Chairman 18 August 2016 2 June 2020 5 of 9 Male Slovenian 1968 BSc in Electrical Engineering, MBA Banking, insurance, strategic management, YES NO / Audit Committee Member 3 of 6
Member 3 June 2020 3 June 2024 financial markets and analyses, controlling, Chairman from 3 June 2024
Vice Chairman 30 August 2023 3 June 2024 accounting and business process reengineering Strategy Committee Member until 3 June 2023 1 of 3
Jure Valjavec Member 14 June 2021 1 September 2024 9 of 9 Male Slovenian 1975 Master of Science Business strategy and business models, YES NO / Appointment and Remuneration Committee Member until 1 September 2024 5 of 7
governance system Nomination Committee Member from 29 November 2023 to
3 June 2024		 5 of 5
Strategy Committee Chairman until 1 September 2023 1 of 3
Aleš Košiček Member 11 July 2023 10 July 2027 4 of 9 Male Slovenian 1966 MSc in Business and Organisation Insurance, governance systems, business strategy YES NO / Audit Committee Member 6 of 6
and business models, financial analyses in the Nomination Committee Member until 3 June 2024 5 of 5
context of Zavarovalnica Triglav's operations Member from 19 November 2024 /
Appointment and Remuneration Committee Member from 2 September 2024 1 of 7
Strategy Committee Member from 18 September 2024 1 of 7
Janja Strmljan Čevnja Member 11 July 2023 10 July 2027 4 od 9 Female Slovenian 1969 LL.B. Regulatory and other legal requirements that YES
NO		 / Strategy Committee Member 3 of 3
apply to Zavarovalnica Triglav Risk Committee Member 1 of 1

5.3.3.2 Supervisory Board in 2024

Composition of the Supervisory Board in 2024

Business report

2024 Key Highlights

1. Address by the President of the Management Board

Accounting report

Appendix

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Membership in Supervisory Board
committees		 Function in Supervisory Board
committees		 Attendance of meetings of Supervisory
Board committees / total number of
meetings of Supervisory Board committees

2024 Key Highlights

Accounting report

Appendix

External members of Supervisory Board committees in 2024

First and last name Supervisory Board committee Attendance of
meetings of
Supervisory Board
committees and total
number of committee
meetings		 Gender Nationality Education Year of
birth		 Professional profile Membership in the supervisory bodies of other
companies while serving on a Supervisory Board
committee in 2024
Luka Kumer Audit Committee
Until 19 November 2024		 7 of 7 Male Slovenian BSc in Economics 1981 Financial markets, business strategy and business
models, governance system, financial analyses		 /
Mateja Lovšin Herič Nomination Committee
Until 6 June 2024		 5 of 5 Female Slovenian BSc in Economics 1969 Corporate governance and finance Istrabenz turizem d.d., Koto d.o.o.
From 28 November 2024 /
Katarina Sitar Šuštar Audit Committee
From 19 November 2024		 / Female Slovenian MSc in Business 1971 Certified auditor, audit of various legal entities,
insurance		 The audit committees of the supervisory boards of
Pošta Slovenije d.o.o., and University of Ljubljana

By signing the Statement of Independence and Loyalty, the members of the Supervisory Board undertook to adhere to the principles of independence laid down in item B of the Annex to the Corporate Governance Code. The statement is available on the company's website. Data on the remuneration of the Supervisory Board members are disclosed in Section 4.4 of the Accounting Report. Their remuneration was in line with the resolution passed by the 41st General Meeting of Shareholders of Zavarovalnica Triglav.

Accounting report

Appendix

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

5.3.3.3 Composition of the Supervisory Board committees and their activities in 2024

In 2024, the Company had the following committees: the Audit Committee, the Appointment and Remuneration Committee, the Strategy Committee and the newly established Risk Committee, as well as the Nomination Committee as an ad-hoc committee. Supervisory Board committees prepare draft resolutions for the Supervisory Board, assure their implementation and carry out other tasks.

The duties and powers of the committees are set out in the Companies Act, the Rules of Procedure of the Supervisory Board, Supervisory Board resolutions and the rules of procedure of individual committees. Their main tasks are presented in the figure below.

The Supervisory Board committees and their main tasks

their networks

5.1 Governance policy 5.2 Statement of compliance with the Slovenian Corporate Governance Code 5.3 Management bodies of Zavarovalnica Triglav 5.4 Governance and management of subsidiaries 5.5 External and internal audit 5.6 Internal controls and risk management in relation to financial reporting 5.7 Notes on the takeover legislation 5.8 Disclosure of existence of any agreements or

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Appendix

As at 31 December 2024, the Audit Committee was composed of Barbara Nose as chair and Tim Umberger, Aleš Košiček and Katarina Sitar Šuštar, an independent external expert, as members.

As at 31 December 2024, the Appointment and Remuneration Committee was composed of Tomaž Benčina as chair and Andrej Andoljšek, Tim Umberger and Aleš Košiček as members.

As at 31 December 2024, the Strategy Committee was composed of Tim Umberger as chair and Tomaž Benčina, Andrej Andoljšek, Monica Cramér Manhem, Barbara Nose, Rok Ponikvar, Aleš Košiček and Janja Strmljan Čevnja as members.

The Risk Committee was established by the Supervisory Board during its session on 21 August 2024 and, as of 31 December 2024, comprised the following members: Monica Cramér Manhem as chair and Barbara Nose, Janja Strmljan Čevnja and Rok Ponikvar as members.

The Nomination Committee operates as an ad hoc committee. It was established on 19 November 2024 due to the expiry of the term of office of Supervisory Board members Andrej Andoljšek and Tomaž Benčina in 2025. The Committee will operate until the election of new Supervisory Board members, shareholder representatives, at the General Meeting of Shareholders, but not later than 3 June 2025. It is composed of Tim Umberger as chair, Rok Ponikvar and Aleš Košiček as members, and Mateja Lovšin Herič as an external member.

See Section 5.3.3.2 Supervisory Board in 2024 for more information about the structure of Supervisory Board committees.

5.4 Governance and management of subsidiaries

The Triglav Group is comprised of Zavarovalnica Triglav as the controlling company, its subsidiaries and associates, and joint ventures. The subsidiaries operate as independent legal entities in accordance with the applicable local legislation, the resolutions passed by their general meetings and their management and supervisory bodies, business cooperation agreements (where applicable) and other adopted internal documents.

The Governance Policy of the Triglav Group's Subsidiaries (hereinafter: the Policy) sets out the main guidelines for the governance of subsidiaries, taking into account the Group's long-term objectives, values and strategy. It was updated in May 2024.

The systemic governance of subsidiaries, as set out by the Policy, is implemented through general meetings, supervisory and management bodies of each subsidiary and by applying standardised and unified key rules and procedures in the areas of expertise. These rules apply to key risk management, compliance, internal audit and actuarial functions of the subsidiaries, with their implementation aimed at achieving common minimum standards for core business performance, effective governance, reporting and control at Group level.

The updated Policy assigns a crucial role to the three-line governance system in the effective management and control of subsidiaries. The Triglav Group Subsidiary Management Division, key functions, relevant departments and business segments of the parent company are responsible for ensuring the effective implementation of the Group's governance system. Through mutual cooperation, they establish and maintain an efficient and transparent Group governance system.

The three-line governance system supports a clear separation of powers, responsibilities and effective risk management. At the same time, it ensures that business activities align with the Group's corporate objectives and strategy for harmonious and synergistic operations. The three-line governance system of subsidiaries includes:

  • Corporate governance: It forms part of the first line and involves the active exercise of management rights by the parent company or its subsidiary as a parent company, in compliance with the legislation applicable to each subsidiary and its internal regulations. An essential part of corporate governance is maintaining an effective dialogue between the Company and its subsidiaries to achieve common goals.
  • Key function management: The second line comprises the parent company's key functions risk management, compliance, internal audit and actuarial – which support the business lines in achieving their business objectives. They also ensure that risks within the Company and the Group, including potential risks, are identified, assessed, monitored and managed in accordance with applicable legislation and internal regulations. They operate independently of the business lines to ensure objective risk assessment and control.
  • Business line management: The third line consists of the parent company's business lines, which are responsible for managing business activities at Group level.

Zavarovalnica Triglav adheres to the principle of top-down governance, which is fundamental to all aspects of governance, strategy and operational decision-making within the Company and its subsidiaries. This approach ensures that management directions, policies and strategic objectives are established at the highest level and consistently communicated and implemented across all levels.

5.2 Statement of compliance with the Slovenian Corporate Governance Code 5.3 Management bodies of Zavarovalnica Triglav 5.4 Governance and management of subsidiaries 5.5 External and internal audit 5.6 Internal controls and risk management in relation to financial reporting 5.7 Notes on the takeover legislation 5.8 Disclosure of existence of any agreements or authorisations regarding shares or voting right 6. The share and shareholders of Zavarovalnica Triglav 7. Macroeconomic environment and market trends

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Appendix

The Policy clearly defines the governance powers of the parent company over its subsidiaries, the process for identifying risk escalation, and the powers and responsibilities of Group subsidiaries. It also establishes the foundation for the Remuneration Policy applicable to members of supervisory and management bodies of subsidiaries, outlines the framework for transactions between the parent company and subsidiaries, and specifies the subsidiaries' reporting system.

The subsidiary governance system is designed so that Zavarovalnica Triglav, as the parent company, manages its direct subsidiaries. Accordingly, its direct subsidiaries assume responsibility for transferring the governance system to their own subsidiaries and actively managing them. The expected objectives of the system transfer and the implementation of the activities are further detailed in the Minimum Standards of Zavarovalnica Triglav d.d. for the Operations of Subsidiaries (hereinafter: the Minimum Standards). These standards outline the basic and key requirements for ensuring the efficient and consistent operation of all Group members, irrespective of their geographical location or specific activities. The purpose of the Minimum Standards is to align all Group subsidiaries with the Group's objectives, values and strategy, while respecting local legislation and accounting for market specificities. The Policy defines the procedures for preparing, monitoring, implementing, enforcing and updating the Minimum Standards, outlines the responsibilities of the relevant departments of the parent company and the management of the subsidiaries, and specifies the actions to be taken in the event of deviations from the Minimum Standards. The Minimum Standards are regularly updated. The relevant business segments of the parent company monitor the implementation of the Minimum Standards insubsidiaries, thereby achieving integration between the subsidiaries' and Zavarovalnica Triglav's business functions and ensuring a comprehensive overview at the Group level.

The Company has in place and is implementing a robust and reliable governance system for the Triglav Group, which is compliant with statutory requirements and comparable to other insurance groups.

2024 Key Highlights

Appendix

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The composition of management and supervisory bodies as at 31 December 2024

Subsidiary Management Supervisory function
Slovenia
Pozavarovalnica Triglav Re d.d., Ljubljana Gregor Stražar – President
Tomaž Rotar – Member
Maja Omahen Petrič – Member		 Supervisory Board:
Tadej Čoroli – Chairman, Katja Modec, Janko Šemrov
Triglav, pokojninska družba d.d., Ljubljana Aljoša Uršič – President
Peter Krassnig – Member
Vida Šeme Hočevar – Member		 Supervisory Board:
Blaž Jakič – Chairman, Blaž Kmetec, Miha Grilec, Miran Kalčič, Vesna Vodopivec, Borut Simonič, Helena Lokar
Triglav Skladi, družba za upravljanje d.o.o., Ljubljana Benjamin Jošar – President
Andrej Petek – Member
Miha Grilec – Member		 Supervisory Board:
Blaž Jakič – Chairman, Jaka Kirn, Damir Verdev, Marica Makoter, Barbara Gorjup, Damjan Kralj
Triglav INT, holdinška družba d.o.o., Ljubljana Tedo Djekanović – Director Supervisory Board:
Uroš Ivanc – Chairman, Nataša Veselinović (resigned), Saša Kovačić
Triglav, Upravljanje nepremičnin d.o.o., Ljubljana Rok Pivk – Director Supervisory Board:
Tadej Čoroli – Chairman, Ksenija Zajc, Nataša Novak Priveršek
Triglav Svetovanje, zavarovalno zastopanje d.o.o., Domžale Tomaž Dvořak – Director Supervisory Board:
Maja Benko – Chairwoman, Jana Polda, Matjaž Novak, Lidija Breznik
Triglav Avtoservis d.o.o., Ljubljana Janez Obaha – Director
Mladen Jug – Director		 Supervisory Board:
Matej Ferlan – Chairman, Nataša Novak Priveršek, Jaka Klement
Croatia
Triglav Osiguranje d.d., Zagreb Vilma Učeta Duzlevska – President
Darko Popovski – Member
Lidija Pecigoš Višnjić – Member		 Supervisory Board:
Tedo Djekanović – Chairman, Gorazd Jenko, Alenka Vrhovnik Težak, Pave Srezović-Pušić
Serbia
Triglav Osiguranje a.d.o., Belgrade Dragan Marković – President of the Executive Committee
Ivan Grujić – Member of the Executive Committee		 Supervisory Board:
Tedo Djekanović – Chairman, Fejsal Hrustanović, Vuk Šušić, Gorazd Jenko, Milan Tomaževič
Montenegro
Lovćen Osiguranje a.d., Podgorica Matjaž Božič – Chief Executive Officer
Stanko Mugoša – Executive Director		 Board of Directors:
Tedo Djekanović – Chairman, Tomaž Žust, Alenka Vrhovnik Težak, Marjeta Gorinšek, Mateja Geržina
Lovćen životna osiguranja a.d., Podgorica Zorka Milić – Executive Director Board of Directors:
Ljubica Kovačević – Chairwoman, Slobodanka Vukadinović, Danilo Pavličić
Bosnia and Herzegovina
Triglav Osiguranje d.d., Sarajevo Edib Galijatović – President
Emir Krivošija – Member		 Supervisory Board:
Tedo Djekanović – Chairman, Simon Vidmar, Janko Šemrov, Ivica Vulić, Robert Trnovec
Triglav Osiguranje a.d., Banja Luka Janez Rožmarin – Director
Biljana Grahovac – Member of the Executive Committee
Dragan Berić – Member of the Executive Committee		 Management Board:
Midhad Salčin – President, Emir Čaušević, Gregor Railić
North Macedonia
Triglav Osiguruvanje a.d., Skopje Gjorgje Vojnović – Chief Executive Officer
Vojdan Jordanov – Executive Director		 Board of Directors:
Tedo Djekanović – Chairman, Darko Popovski, Matej Ferlan, Blaž Kmetec, Gjorgje Vojnović, Vojdan Jordanov, Gjorgji Jančevski
Triglav Osiguruvanje Život a.d., Skopje Hristina Đambazovska Anastasov –
Chief Executive Officer		 Board of Directors:
Tedo Djekanović – Chairman, Ivan Sotošek, Vilma Učeta Duzlevska, Gjorgji Jančevski, Vladimir Mišo Čeplak, Hristina Đambazovska Anastasov
Triglav penzisko društvo a.d., Skopje Tihomir Petreski – President
Marijan Nikolovski – Member		 Supervisory Board:
Aljoša Uršič – President, Rok Pivk, Blaž Kmetec, Andraž Rangus

Accounting report

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Appendix

5.5 External and internal audit

The financial statements of the Triglav Group and Zavarovalnica Triglav are audited by Deloitte revizija d.o.o., which was appointed in 2022 for the second time in a row for a three-year period. The auditor reports its findings to the Management Board, the Supervisory Board and the Audit Committee.

The report on the work of the Internal Audit Department is presented in Section 9.1 Risk management system.

5.6 Internal controls and risk management in relation to financial reporting

The Group's integrated internal control and risk management system is continuously adapted to the development, organisational changes and good practices, thereby maintaining its effectiveness. The system complies with the basic statutory requirements for insurance undertakings set out in the Companies Act and the Insurance Act, as well as special implementing regulations of the Insurance Supervision Agency on the establishment and maintenance of a suitable internal control and risk management system.

The characteristics and operation of the risk management system is discussed in detail in Section 9. Risk management. The system was set up in all organisational levels and processes and includes:

  • A clear organisational structure with a precisely defined and transparent system of duties, responsibilities and powers;
  • Efficient procedures for an ongoing control, error prevention, and identification, assessment, management and monitoring of risks to which the insurance undertakings are or may be exposed in the course of their operations;
  • An adequate internal control system that includes appropriate administrative and accounting procedures (reporting, working procedures, risk exposure limits and physical controls);
  • Ensuring compliance with the applicable regulatory requirements.

The Internal Audit Department is an independent organisational unit, established in compliance with the law. It regularly reviews the effectiveness of the internal control and risk management system and offers upgrade proposals as well as reports to the Management Board, the Audit Committee and the Supervisory Board.

The accuracy, completeness and timeliness of financial reporting as well as compliance with applicable regulations are ensured by the internal control system established by the parent company and implemented by the Group at all levels. Accounting controls are based on the principles of appropriate sharing of responsibilities. They include checking the performance of transactions, keeping up-to-date records, ensuring the matching of balance of books of account with the actual balance, separation of the records from the execution of transactions, professionalism of accountants and their independence. Accounting controls are closely linked to IT controls, which, inter alia, restrict and control access to the data and applications and ensure completeness and accuracy of data capturing and processing.

The processes for identifying, assessing, monitoring and managing tax risks are described in more detail in Section 2.11 Tax policy of the Accounting Report.

5.7 Notes on the takeover legislation

Zavarovalnica Triglav is subject to the Takeover Act (hereinafter: ZPre-1).

The share capital structure of Zavarovalnica Triglav, the rights and obligations attached to the shares, the restriction on transfer of shares and the absence of shares that would grant their holders special control rights are described in detail in Section 6. The share and shareholders of Zavarovalnica Triglav.

5.8 Disclosure of existence of any agreements or authorisations regarding shares or voting right

Zavarovalnica Triglav is not aware of any shareholder agreements that could cause a restriction on the transfer of shares or voting rights.

The Company's Management Board is not authorised by the General Meeting of Shareholders to buy its own shares. The Management Board's authorisation to increase the share capital is described in Section 5.3.2.1. The issue of new shares, the amount of capital increase, the rights attached to new shares and the conditions for issuing new shares are decided on by the Company's Management Board with the consent of the Supervisory Board.

Zavarovalnica Triglav has no employee share scheme.

The Company is not aware of any agreements that would become effective, change or expire on the basis of a changed control of the Company or as a consequence of a takeover bid as defined by the ZPre-1.

Zavarovalnica Triglav did not enter into any agreements with the members of its management or supervisory bodies or employees which would provide for remuneration if a takeover bid in line with the ZPre-1 caused them to resign, be dismissed without justified grounds, or caused their employment to be terminated in some other manner.

Andrej Slapar President of the Management Board

Tadej Čoroli Management Board Member

Blaž Jakič Management Board Member

Uroš Ivanc Management Board Member

Management Board Member

Marica Makoter

5. Corporate Governance Statement

Accounting report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

6. The share and shareholders of Zavarovalnica Triglav

Zavarovalnica Triglav's share achieved a total return of 21.0%.

  • The Triglav Group received an »A« credit rating for the ninth consecutive time, with S&P upgrading its medium-term outlook from stable to positive.
  • There were no significant changes in Zavarovalnica Triglav's shareholder structure. The share of international shareholders slightly increased and the share of retail shareholders continued to grow.
  • Zavarovalnica Triglav issued a subordinated bond in July 2024.

6.1 Share of Zavarovalnica Triglav

Zavarovalnica Triglav's share (ZVTG) is listed on the Ljubljana Stock Exchange Prime Market and has been traded on the stock exchange market since the end of 2008. Its total annual return in 2024 was 21.0% and the dividend yield was 4.3%. As at 31 December 2024, the price-to-book ratio (P/B) was 0.90, while the price-to-earnings ratio (P/E) was 8.13.

With a market capitalisation of EUR 920.8 million, Zavarovalnica Triglav was the fourth largest Slovenian listed company in 2024, its ZVTG share being one of the most liquid shares on the Ljubljana Stock Exchange. The ZVTG share turnover (excluding block trades) reached EUR 24.4 million, remaining at the same level as the previous year. A third of ZVTG share turnover was carried out by the liquidity provider, which has rendered its services since 2019.

Key figures relating to the ZVTG share (EUR)

Items 2024 2023
Maximum closing price 41.40 40.30
Minimum closing price 33.60 29.20
Closing price as at 31 December 40.50 34.70
Book value per share (parent company)* 32.62 30.02
Book value per share (consolidated data) 43.50 39.19
Net earnings per share (consolidated data) 5.76 0.71
Market capitalisation as at 31 December 920,773,494 788,909,636
Average daily turnover (excluding block trades) 98,980 102,764
Dividend per share 1.75 2.50
Number of shares 22,735,148 22,735,148
Percentage of free float 30.6% 30.7%
Traded on Ljubljana Stock Exchange - LJSE
ISIN SI0021111651
Ticker symbol ZVTG
Bloomberg ZVTG SV
Reuters ZVTG.LJ
Credit rating (S&P Global Ratings, AM Best) S&P Global: »A«, positive
medium-term outlook
AM Best: »A«, stable
medium-term outlook		 »A«, stable
medium-term outlook

Movement in the ZVTG share price in 2024 compared to the Ljubljana Stock Exchange SBITOP index and the sectoral index of European insurance companies STOXX Europe 600 Insurance (the baseline date: 31 December 2023 = 100)

* The effects of the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav on 1 October 2024 are explained in more detail in Section 2.7 Merger of the subsidiary Triglav, Zdravstvena zavarovalnica in the Accounting Report.

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Appendix

In the first half of the year, the ZVTG share price was still influenced by the lower results of the previous year but later gained momentum due to promising half-year and nine-month results, as well as an improved annual profit guidance. The Company paid dividends to shareholders in June, with 17 June 2024 being the cut-off date (see Sections 5.3.1 General Meeting of Shareholders and 6.4 Dividends and the dividend policy for more information). On an annual basis, the ZVTG share price increased by 17%, in line with the growth of the STOXX Europe 600 Insurance index for European insurance companies. The Ljubljana Stock Exchange SBITOP index, in which the ZVTG share holds a 9.0% share, rose by 33%.

6.2 Equity

As at 31 December 2024, Zavarovalnica Triglav's share capital remained unchanged and amounted to EUR 73,701,391.79 compared to the previous year. It is divided into 22,735,148 ordinary registered no-par value shares constituting one class. The shares are issued in dematerialised form and are freely transferable. Each share represents the same stake and corresponding amount in share capital, and all have been fully paid up. Each share gives its holder the right to one vote at the general meeting of shareholders and a proportionate share of profit allocated for dividend payment. In the event of bankruptcy or liquidation, the shareholders are entitled to a proportionate share of residual bankruptcy or liquidation estate after the payoff of preference shareholders.

In acquiring shares, Zavarovalnica Triglav's existing and potential shareholders are required to comply with the Insurance Act (ZZavar-1). An authorisation of the Slovenian Insurance Supervision Agency is a prerequisite for:

  • The acquisition of shares of an insurance undertaking by which a person acquires or exceeds a qualifying holding (i.e. a direct or indirect holding of shares or other rights that gives the holder a minimum 10% share of voting rights or capital, or that gives the holder a share of voting rights or capital lower than 10%, but nevertheless allows the holder to significantly influence the management of the company). In its decision on issuing an authorisation to acquire a qualifying holding, the Insurance Supervision Agency determines the level of the share in the voting rights or capital of the insurance undertaking for which the authorisation is issued as one of the following ranges:
    • The share of the voting rights or capital of the insurance undertaking that is equal to or greater than a qualifying holding and less than 20%;
    • The share of the voting rights or capital of the insurance undertaking that is equal to or greater than 20% and less than one third;
    • The share of the voting rights or capital of the insurance undertaking that is equal to or greater than one third and less than 50%;
    • The share of the voting rights or capital of the insurance undertaking that is equal to or greater than 50%;
    • The share on the basis of which the future qualifying holder becomes the parent company of the insurance undertaking;
  • Before any subsequent acquisition of shares by the qualifying holder that would result in the qualifying holding exceeding the range subject to the already issued authorisation for acquisition of a qualifying holding;
  • For the entities that agree to a concerted acquisition of the shares of the insurance undertaking or a concerted exercising of management rights arising from the shares (joint qualifying holders) and intend to acquire a holding by which they would jointly reach or exceed a qualifying holding of the undertaking;
  • Before any subsequent acquisition of shares by the joint qualifying holders that would result in their joint qualifying holding exceeding the range subject to the already issued authorisation for acquisition of a qualifying holding.

The holder of shares of an insurance undertaking that were acquired or are being held in contravention of the ZZavar-1 has no voting rights with respect to those shares. See the ZZavar-1 for further information.

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Appendix

6.3 Shareholder structure

There were no significant changes to Zavarovalnica Triglav's shareholder structure in 2024.

The Company's top ten shareholders held a 76.8% stake, up by 1 percentage points relative to 31 December 2023. Among the shareholders holding a stake of more than 5% are two funds owned by the Republic of Slovenia (ZPIZ Slovenije and SDH d.d.) and the Croatian pension fund, which is listed in the Company's share register under the fiduciary account of its custodian bank.

The Company's free float, representing shares held by shareholders with less than a 5% participating interest, stood at 30.6% (2023: 30.7%). As at 31 December 2024, the ownership of the free float was dispersed among 8,218 shareholders from 30 countries. Among them were approximately 40 international banks with fiduciary accounts held on behalf of their clients, as well as international institutional investors, primarily from Europe and the USA. International shareholders held a 15.9% stake (0.3 percentage points more than the year before), while the share of Slovenian institutional shareholders stood at 7.8% (0.5 percentage points less).

In recent years, Slovenian retail shareholding has gradually increased. This trend continued in 2024, with their stake increasing by 0.2 percentage points to 13.7%. Slovenian retail investors actively traded the ZVTG share, with targeted investor relations activities promoting this engagement.

Zavarovalnica Triglav's top ten shareholders as at 31 December 2024 Business report

Slovenian institutional shareholders: 7.8% Retail investors: 13.7% International shareholders: 15.9%

Two funds owned by the Republic of Slovenia: 62.6%

6.5 Investor relations management 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav

Accounting report

Appendix

In 2024, ZVTG shares were bought by President of the Management Board Andrej Slapar and Management Board members Uroš Ivanc and Tadej Čoroli. 6.4 Dividends and dividend policy

The number of shares held by the members of the Management and Supervisory Boards as at 31 December 2024

First and last name Function Number of shares Participating interest
Andrej Slapar President 1,800 0.01%
Uroš Ivanc Member 1,042 0.00%
Tadej Čoroli Member 750 0.00%
Marica Makoter Member 150 0.00%
Blaž Jakič Member 2,864 0.01%
Management Board 6,606 0.03%
Supervisory Board 0 0.00%
Total Management Board and Supervisory Board 6,606 0.03%

At Zavarovalnica Triglav, the dividend policy is regarded as a firm commitment to its shareholders. The Company strives to implement its dividend policy consistently, thereby fulfilling shareholders' expectations of the ZVTG share as a stable, safe and profitable long-term investment.

Zavarovalnica Triglav's dividend policy provides as follows: "The Company pursues an attractive and sustainable dividend policy. The part of consolidated net profit of the preceding year which is to be allocated to dividend payment accounts for at least 50%. The Company will strive to pay out a dividend no lower than the dividend paid out in the preceding year. As thus far, the future implementation of the dividend policy will be subordinated to achieving the medium-term sustainable target capital adequacy of the Triglav Group. The proposal of the Management Board and the Supervisory Board as regards the annual distribution of accumulated profit of the Company will therefore take into account the following three objectives in a balanced manner: to ensure prudent capital management of the Triglav Group and its financial stability, to reinvest net profit in the implementation of the strategy of growth and development of the Triglav Group and to pay out attractive dividends to its shareholders."

The strategic objectives of capital management in conjunction with the dividend policy are described in Section 9.2 Capital position.

As seen from the figure below, the implementation of the dividend policy over the last five years has been influenced by specific circumstances, primarily due to the COVID-19 pandemic and one-off negative events that impacted the Group's results. The Management Board and the Supervisory Board took these circumstances into account when proposing the distribution of accumulated profit for the year, while the General Meeting of Shareholders supported their proposals every year. In 2024, the Company paid a total dividend amount that far exceeded the Group's 2023 earnings (see Section 5.3.1 General Meeting of Shareholders). In doing so, it pursued the objectives of the dividend policy and its consistency, considering the unique circumstances in which the Group operated in 2023 and the improved outlook for 2024.

Gross dividend per share by year (EUR), its share of consolidated net profit for the preceding year for the dividend payment and the dividend yield in 2013–2024

Dividend yield

Zavarovalnica Triglav 6.7 Bonds

Accounting report

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Appendix

6.5 Investor relations management

Through the active management of relations with investors, shareholders and analysts, the Company promotes the attractiveness of its financial instruments. In doing so, it follows best international practices and, as a company listed on the Ljubljana Stock Exchange Prime Market, helps to shape the standards of this market.

The Company aims to provide clear and consistent information to the market. All key information about the Company's operations, position and outlook is regularly published in both Slovenian and English on the SEOnet information system of the Ljubljana Stock Exchange and on the Company's website (www.triglav.eu), which was upgraded in 2024 to further improve the clarity, quality and accessibility of key information for investors. In 2024, efforts were also focused on improving the external analytical basis for the ZVTG valuation.

Open and constructive relationships with shareholders, investors and analysts are maintained through videoconferencing meetings, conference calls and email communication. A calendar of the 12 investor events attended or organised in 2024, along with the presentations, is available on the Company's website (www.triglav.eu). Four of these events were organised for international and Slovenian institutional investors following the announcement of business results. Special attention is given to retail investors. In 2024, the share was presented to them at three dedicated events.

Furthermore, the Company seeks to achieve the highest possible participation in general meetings of shareholders. In 2024, 77% of all shares with voting rights were represented at the General Meeting of Shareholders (see Section 5.3.1 General Meeting of Shareholders for more information).

Shareholders, investors and analysts can direct their inquiries to the contact details provided below.

Information for shareholders and investors:

Zavarovalnica Triglav d.d., Ljubljana Miklošičeva cesta 19, 1000 Ljubljana Helena Ulaga Kitek, Director of Investor Relations Department Telephone: +386 1 47 47 331 Email: [email protected]

6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav

The credit ratings of the Triglav Group – and thus its parent company Zavarovalnica Triglav and its subsidiary Pozavarovalnica Triglav Re – are assigned by two renowned credit rating agencies: S&P Global (hereinafter: S&P) and AM Best. In 2024, the Group was again assigned an "A" stand-alone credit rating by both agencies. All individual elements of the overall credit rating were rated as high as the year before and substantiated in a similar way.

Both rating agencies gave a stable medium-term outlook, but in December 2024, S&P upgraded its outlook from stable to positive. The upgrade reflects the agency's expectation that the Triglav Group will continue to perform well in a positive business environment, sustain its strong capitalisation, expand operations in markets outside Slovenia, and retain its leading position in the Slovenian insurance market. The agency assessed the Group's strategy to 2030 as ambitious in terms of profitability, growth and further diversification of its operations. In addition, the Group aims to maintain its robust capital position and implement balanced dividend policy.

Credit ratings of Zavarovalnica Triglav since 2008

Year Credit rating Medium-term outlook Rating agency
Positive S&P Global
2024 A Stable AM Best
Stable S&P Global
AM Best
2023 A Stable S&P Global
AM Best
2022 A Stable S&P Global
AM Best
2021 A Stable S&P Global
AM Best
2020 A Stable S&P Global
AM Best
2019 A Stable S&P Global
A Stable AM Best
2018 S&P Global
AM Best
2017 A Stable S&P Global
Stable AM Best
2016 A S&P Global
Positive AM Best
2015 A- S&P Global
2014 A Positive AM Best
Stable S&P Global
Stable S&P Global
2013 A Stable AM Best
BBB+ Positive S&P Global
2012 A- Negative S&P Global
2011 A Negative S&P Global
2010 A Stable S&P Global
2009 A Stable S&P Global
2008 A Stable S&P Global

The latest credit rating reports of the credit rating agencies from 2024, are available on the website www.triglav.eu under the Investor Relations tab.

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6.7 Bonds

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6.7 Bonds

In July 2024, Zavarovalnica Triglav issued a 20.5-year subordinated bond (Tier 2 under Solvency II), callable after 10.5 years as part of the Triglav Group's regular capital management activities. The total issue size of the bond was EUR 100 million, with a yield of 6.75%. The success of this issue further confirms the high level of confidence that institutional investors have in the Group.

Zavarovalnica Triglav issued two subordinate bonds, which are included in own funds for the purpose of calculating capital adequacy under Solvency II. The first bond was issued in 2019. See the table below for more information.

Bond of Zavarovalnica Triglav

ISIN XS1980276858 XS2848005166
Type Subordinated bond (Tier 2 pursuant to the
Solvency II regulations)		 Subordinated bond (Tier 2 pursuant to the
Solvency II regulations)
Issue size in EUR 50,000,000
100,000,000
Currency EUR EUR
Coupon rate and payment
Fixed at 4.375% annually until first call date,
payable annually		 Fixed at 6.70% annually until first call date,
payable annually
Thereafter variable at 3-month Euribor plus
4.845% (equal to the original initial credit spread
+ 1 percentage point), payable quarterly		 Thereafter variable at 3-month Euribor plus
4.937% (equal to the original initial credit spread
+ 1 percentage point), payable quarterly
First call date 22 October 2029 16 January 2035
Maturity date 22 October 2049 16 January 2045
Maturity in years 30.5 20.5
Regulated market Luxembourg Stock Exchange Luxembourg Stock Exchange
Issue rating BBB+ (S&P) BBB+ (S&P)

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7. Macroeconomic environment and market trends

  • The favourable financial market situation had a positive impact on the growth of financial investments, assets under management and the investment result.
  • The Triglav Group maintained its leading market position among insurance groups in Slovenia and Montenegro, while strengthening its market share in the Slovenian, Serbian and Macedonian insurance markets.
  • Total written premium increased across most insurance markets.

7.1 The general economic environment worldwide and in Slovenia

In 2024, the global economy was marked by moderate and declining economic growth, accompanied by uncertainties arising from factors such as the armed conflict in the broader Middle East and the ongoing war between Russia and Ukraine. In early June, the European Parliament elections created political uncertainty in France, while in the US, the presidential elections and the November announcement of tariff increases by the newly elected administration added to the uncertainty in the second half of the year. Inflationary pressures eased gradually throughout the year.

According to the latest estimates by international institutions, the US recorded strong real GDP growth, while the euro area saw weak growth. Growth in the US was driven by robust private consumption, whereas in the euro area, it was constrained by reduced investment spending and slower growth in other GDP components. The economic outlook worsened in the second half of the year. This is especially evident in the euro area, where the Purchasing Managers' Index (PMI) for services fell to near stagnation, while the manufacturing PMI, in contraction for over two years, dropped further towards the year's end, in contrast to trends observed in the US. Despite these challenges, according to Eurostat's initial estimate, the euro area unemployment rate fell to 6.3% in November, its lowest level since the introduction of the euro, while year-on-year headline inflation remained at just 2.4% in December.

Slovenia's macroeconomic situation mirrored those of the euro area, with moderate private consumption growth and declining investment spending. Slower export recovery in international trade negatively impacted overall GDP growth. Although the unemployment rate began to rise during the year, it remained significantly below the euro area average. According to Eurostat, inflation stood at 5.2% in November, with Slovenia's year-on-year inflation estimated at 2.0% in December.

The latest forecasts from international institutions indicate gradual but slowing economic growth in the euro area, with headline inflation projected to remain around 2%, despite ongoing domestic inflationary pressures. According to the European Central Bank's (ECB) December forecast, the 20 euro area countries are expected to experience below-trend real GDP growth of 0.7% in 2024 and 1.1% in 2025, with headline inflation easing to 2.4% and 2.1%, respectively.

In its December forecast for 2024, the Bank of Slovenia projected modest real GDP growth for Slovenia at only 1.4%, with potential strengthening to 2.2% in 2025. Headline inflation is expected to align closely with the euro area, at 2.0% in 2024 and 2.2% in 2025. The outlook is accompanied by risks, primarily stemming from geopolitical uncertainties and potential protectionist measures in international trade.

Financial markets were affected by uncertainty surrounding the timing and pace of major central banks' easing of austerity measures. In June, the ECB responded to a deteriorating economic outlook by reducing the deposit rate by 0.25 percentage points, the first such cut in the year. Subsequently, it implemented three additional cuts of the same magnitude, bringing the rate to 3.0%. Similarly, the US Federal Reserve (Fed) initiated its first rate cut in September, lowering its key interest rate by 0.5 percentage points, followed by two further reductions of 0.25 percentage points each, ending the year at 4.25–4.50%. Representatives of both banks repeatedly emphasised that their decisions would be guided by future macroeconomic data releases, avoiding any commitment to a predetermined monetary policy direction. However, in December, the chair of the Federal Reserve cautioned that the decline in US inflation was progressing too slowly.

Bond markets experienced a rise in required yields in the first half of the year, followed by a decline in the second half, accompanied by considerable volatility. Over the reporting period, the required yield on Germany's 10-year government bond increased by 0.34 percentage points, reaching 2.36%. After nearly two years, the spread between the required yields on the 10-year and 2-year German Bund turned positive, closing the year at 0.29 percentage points. The required yield on Slovenia's 10-year government bond remained largely unchanged throughout the year, finishing at 3.03%. Other euro area government bonds exhibited similar trends in required yields. Political uncertainty contributed to a significant rise in French government bond yields, which ended the year at 3.19%. In contrast, the improved economic outlook led to a notable decrease in Croatian and Italian bond yields, which closed the year at 3.03% and 3.52%, respectively.

Corporate bond markets and equity markets, in particular, reflected a markedly positive investor sentiment. Among the fastest-growing global equity indices, the US S&P 500 saw a 23.3% rise, mainly driven by technology stocks. The Japanese NIKKEI and the German DAX followed, with gains of 19.2% and 18.8%, respectively. The Chinese Hang Seng (17.7%) and the European Euro Stoxx 50 (8.3%) showed slightly smaller increases. In 2024, the Slovenian SBITOP index also experienced a strong growth of 33.0%.

Accounting report

Appendix

7.2 Environmental impact on the Triglav Group's operations1

The Group's business result was impacted by major CAT events in a total estimated value of EUR 45.5 million (2023: EUR 212.2 million). Hailstorms resulted in EUR 28.8 million in claims in Slovenia and a total of EUR 0.5 million in claims in Croatia and Serbia. The Group's estimated reinsurance claims totalled EUR 16.2 million due to the earthquake in Taiwan, the June floods and other weather events in Germany, Italy, Switzerland and Austria, the unrest in New Caledonia, Hurricane Beryl in the Caribbean, the September floods in Central Europe caused by Cyclone Boris, Typhoon Yagi in Vietnam and China, and the December storms in Western Europe, Greece and Cyprus, and the earthquake in Vanuatu. The net effect of these CAT events amounted to EUR 41.0 million.

The favourable financial market situation had a positive impact on the growth of financial investments, assets under management and the investment result. Inflation continued to have an impact on the increase of prices of materials and services and therefore on higher claims paid and operating expenses.

7.3 Global insurance market

According to latest official data from Swiss Re reinsurance company, total premium volume in the global insurance market reached USD 7.2 trillion in 2023, recording a 2.8% growth in real terms year-onyear (6.1% nominal growth). Non-life insurance premium rose by 3.9%, while life insurance premium increased by 1.3%. Advanced markets accounted for 81% of global insurance premiums, achieving 2.0% premium growth, while emerging markets grew by 6.6%. The written premium in the euro area declined by 1.1% in real terms compared to the previous year.

The US holds the largest and growing share of the global insurance market at 44.9% (2022: 44.1%), followed by China (10.1%), the UK (5.2%), Japan (5.0%) and the EU markets, France (3.9%) and Germany (3.4%).

Global economic growth, rising real incomes as inflation moderates and higher interest rates are driving demand for insurance. Swiss Re estimates that global premiums will grow by 3.2% in 2024, with higher interest rates particularly boosting demand for life insurance (savings products). In non-life insurance, inflationary pressures have pushed up premium rates in recent years and thus the real growth in global premiums in 2023 (3.9%). Lower inflation will have a positive impact on claims payments. Swiss Re forecasts global premium growth of 2.6% in 2025, with slightly higher growth in life insurance.

2024 Key Highlights

7.4 Triglav Group's key insurance markets

7.5 Asset and investment fund management market in Slovenia

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7.4 Triglav Group's key insurance markets

The Triglav Group sells insurance in seven insurance markets in six countries: in the Adria region in Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia. The Group also operates in the wider international environment via its branch in Greece and partnerships with foreign insurance brokerage and agency companies, as well as with reinsurers.

The most developed insurance market in the Adria region is Slovenia, where Zavarovalnica Triglav operates, and to which the specialised insurer Triglav, Zdravstvena zavarovalnica merged on 1 October 2024. In other markets across the region, compulsory insurance (motor vehicle liability insurance) continues to dominate, while the most notable growth in non-compulsory insuranc is seen in health insurance. Pozavarovalnica Triglav Re operates throughout the region and in the wider international environment.

The Group increased gross written premium in all insurance markets in the region, except in Slovenia, where supplemental health insurance was terminated at the end of 2023, and in Bosnia and Herzegovina, where ownership consolidation and business optimisation are ongoing. The highest relative premium growth was achieved in the Serbian, North Macedonian and Montenegrin insurance markets (see Section 8. Operations of the Triglav Group and Zavarovalnica Triglav for more information).

Main macroeconomic data for 2024 by Triglav Group insurance market and in the EU

Macroeconomic
indicators		 Slovenia Croatia Serbia Montenegro Bosnia and
Herzegovina		 North
Macedonia		 European
Union
Population (in million) 2.1 3.8 6.6 0.6 3.5 1.8 447.6
GDP growth (estimate in %) 1.5 3.4 3.9 3.7 2.5 2.2 1.1
2024 GDP
(estimate in USD billion)		 73.2 89.7 82.6 8.1 28.4 15.9 19,403.2
2024 GDP per capita
(estimate in USD)		 34,544 23,380 12,514 12,802 8,221 8,659 62,659.6
2024 inflation rate
(estimate in %)		 2.0 4.0 4.5 4.2 2.2 3.3 2.6
2024 unemployment rate
(estimate in %)		 3.5 5.6 9.1 11.0* 13.2 13.0 n.a.

Source: International Monetary Fund (IMF), World Economic Outlook, October 2024, *Agency for Statistics of Montenegro (Q3 2024)

The Triglav Group continues to be the leader among insurance groups in Slovenia and Montenegro, and ranks third in North Macedonia. Its market share grew in Slovenia, Serbia and North Macedonia.

Market shares and market position of the Triglav Group in the Adria region in 2024

Market Market share Market share trend Ranked in 2024 Ranked in 2023
Slovenia 40.8% ↑ + 1.3 percentage point 1 1
Croatia** 4.8% ↓ – 0.4 percentage point 8 8
Serbia* 7.7% ↑ + 0.2 percentage point 5 5
Montenegro 34.6% ↓ – 0.4 percentage point 1 1
Bosnia and Herzegovina 8.3% ↓ – 1.0 percentage point 5 4
- Federation of BiH 9.7% ↓ – 0.9 percentage point 4 3
- Republic of Srbska*** 5.5% ↓ – 1.1 percentage point 8 5
North Macedonia 13.8% ↑ + 0.4 percentage point 3 3

* Data for January–September 2024.

** Market share calculations for the Croatian insurance market are based on premium paid.

*** Including the market shares of Triglav Osiguranje, Banja Luka and the branch of Triglav Osiguranje, Sarajevo in Banja Luka.

Presented below are the characteristics of individual markets and the market position of Group members.

2024 Key Highlights

7.4 Triglav Group's key insurance markets

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Appendix

7.4.1 Slovenia's insurance market

According to Swiss Re's latest available data, Slovenia's well-developed insurance market ranked 30th globally in 2022 in terms of premium per capita (32nd the previous year) and 29th in terms of insurance penetration (premium as a % of GDP), two places higher than the year before. In 2023, it represented 0.3% of the euro area market, where the premium per capita (insurance density) stood at EUR 2,327 (2022: EUR 2,256) and the premium accounted for 6.2% of GDP (2022: 6.4%).

In 2023, premium per capita in Slovenia climbed to EUR 1,443, reaching its highest level to date. Premium as a percentage of GDP stood at 4.8% (0.1 percentage points lower than in 2022), reaching its lowest level since 2003, due to Slovenia's high GDP growth. Nevertheless, the insurance industry remains one of the most important economic sectors.

Development of Slovenia's
insurance market
Premium per capita
(data for 2023)		 EUR 1,443
Premium as percentage in GDP
(data for 2023)		 4.8%
Insurance market growth index
in 2024		 90.3

Source: Slovenian Insurance Association (SZZ)

As at 31 December 2024, a total of 12 insurance companies, five foreign branches and two reinsurance companies operated in Slovenia's insurance market, all members of the Slovenian Insurance Association (SZZ). The aforementioned merger of Triglav, Zdravstvena zavarovalnica into its parent company resulted in one fewer insurer on the market compared to the previous year. These data exclude direct insurance transactions of insurers from other EU Member States (FOS).

In 2024, insurance companies collected EUR 2.8 billion in gross written insurance, coinsurance and reinsurance premiums, down by 9.7% year-on-year (this calculation does not take into account internal transfers of assets for the payment of pension annuities). The decline in premium is due to the aforementioned termination of supplemental health insurance at the end of 2023. Excluding this premium, which amounted to EUR 599.8 million in 2023, premium growth in the Slovenian insurance market would have been 11.9%. The highest premium increases were achieved by motor vehicle insurance with 15% growth, other damage to property insurance, fire and natural disaster insurance, and unit-linked life insurance.

The Slovenian insurance market remains highly concentrated, with the four largest insurers holding an 83% market share. Zavarovalnica Triglav continues to be the market leader with a 39.4% market share, followed by Zavarovalnica Sava with a 22.2% market share. Among insurance groups, the Triglav Group (the parent company and Triglav, pokojninska družba) continues to hold the dominant position, having increased its market share by 1.3 percentage points to 40.8%, followed by the Sava Insurance Group with a 26.6% market share.

Among supplemental voluntary pension insurance providers, Triglav, pokojninska družba held an 18.7% market share as at 31 December 2024 (0.1 percentage point lower than the previous year).

As at 30 June 2024, Pozavarovalnica Triglav Re held a market share of 58.2% in the Slovenian reinsurance market, recording an increase of 2.4 percentage points year-on-year.

The market shares of insurers and insurance groups in Slovenia in 2024 and comparison with the previous year

The market share of the Triglav Group and Zavarovalnica Triglav in 2024 and premium growth of the Slovenian market and the Triglav Group (gross written insurance, coinsurance and reinsurance premiums excluding internal transfers of assets for the payment of pension annuities)

Triglav Group Zavarovalnica Triglav* Growth index 2024/2023
Market share Change Market share Change Market share Change
Non-life insurance 44.7% + 2.6 p.p. 44.7% + 2.6 p.p. 85 91
Non-life insurance - excluding health insurance 45.1% – 1.0 p.p. 45.1% – 1.0 p.p. 115 112
Health insurance 33.7% + 2.0 p.p. 33.7% + 2.0 p.p. 10 11
Life insurance 31.3% – 0.5 p.p. 26.4% – 0.5 p.p. 106 104
Total 40.8% + 1.3 p.p. 39.4% + 1.1 p.p. 90 93

* Zavarovalnica Triglav's figures for 2023 have been adjusted and include the premium of Triglav, Zdravstvena zavarovalnica.

** In the calculation of market share, pension insurance contracts are considered as insurance premium, whereas under IFRS 17 they are financial contracts under the »fund inflows« item.

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7.4 Triglav Group's key insurance markets

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7.4.2 Croatia

Based on strong economic growth in the first half of the year, which continued into the third quarter of 2024, the National Bank of Croatia estimates annual GDP growth to reach 3.7% (IMF: 3.8%), with a gradual moderation over the next two years. The main drivers of growth are robust domestic demand, supported by favourable labour market developments, highly stimulative fiscal policy and substantial private sector investment. Exports of goods also strengthened, while exports of services started to decline.

According to the Croatian Bureau of Statistics, the annual consumer price inflation rate declined significantly (from 8.4% in 2023 to 3.4%). The primary factor contributing to moderating inflation was the much lower expected core inflation (excluding energy and food prices), while the decline in food price inflation was less pronounced. However, the central bank forecasts that elevated inflation could persist, driven by strong domestic and foreign demand, particularly for travel-related services, a strong labour market and significant salary growth. Core and food price inflation are projected to slow further in 2025 and 2026, while energy price inflation may stabilise at a slightly higher level than estimated for 2024.

Insurance market

Development of Croatia's
insurance market
Premium per capita
(data for 2023)		 EUR 454
Premium as percentage in GDP
(data for 2023)		 2.3%
Insurance market growth index
in 2024		 109.9

Source: Croatian Insurance Bureau

As at 31 December 2024, a total of 14 insurance companies were active in the Croatian market, of which nine were composite insurers, four non-life insurers and one life insurer. Their total written premium was 9.9% higher than the year before (market share calculations for Croatia's insurance market are based on premium paid). Non-life and life insurance premiums increased by 11.2% and 4.2% respectively. In total written premium, non-life insurance premium rose to 82.6% (2023: 81.6%), while life insurance accounted for the rest.

Market concentration continued to be high, with top three insurers controlling 51% of the market. With a 25.5% market share, Croatia osiguranje continued to maintain its dominant position (0.3 percentage points more than in the preceding year). With a 4.8% market share, down by 0.4 percentage points relative to the year before, Triglav Osiguranje, Zagreb maintained its eighth place.

2024 Key Highlights

7.4 Triglav Group's key insurance markets

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7.4.3 Serbia

Moody's (»Ba2«, positive outlook) and Fitch (»BB+«, positive outlook) have affirmed the Republic of Serbia's sovereign credit rating, while S&P Global (»BBB–«, stable outlook) upgraded its rating. The rating decision was based on appropriate and timely actions and stability, both of which are key to preserving investment and consumer confidence.

According to the Statistical Office of the Republic of Serbia and the IMF, real GDP growth is estimated at 3.9%, while the Central Bank of Serbia forecasts medium-term growth in the range of 4–5%. The inflation rate has been declining since April 2023, reaching the target range of 3.4% in May 2024. The Central Bank expects inflation to remain within the target range of 3% ± 1.5% over the medium term.

Typical labour market developments include growth in employment and real growth in average salary (by 9.3% in January–October 2024). According to the data from the Statistical Office of the Republic of Serbia, the unemployment rate in the third quarter of 2024 stood at 8.1%, while the employment rate reached a record high of 51.9%.

Insurance market

Development of Serbia's
insurance market
Premium per capita
(data for 2023)		 EUR 201
Premium as percentage in GDP
(data for 2023)		 1.9%
Insurance market growth index
in Q1-Q3 2024		 114.7

Source: National Bank of Serbia

Serbia's insurance market was characterised by high concentration, where 16 insurance companies were active (six composite insurers, six non-life insurers and four life insurers). The top four insurers control almost two thirds of the market. Total written premium increased by 14.7% in the first nine months of 2024. Non-life insurance premium recorded 15.9% growth, while life insurance premium growth stood at 9.4%. In total written premium, non-life insurance premium climbed to 82.3% (compared to 81.5% in the preceding year).

Our insurer in Serbia, Triglav Osiguranje, Belgrade,

increased its market share to 7.7% (2023: 7.5%), maintaining its fifth place. Its written premium growth was higher than the Serbian insurance market growth (index 117.6).

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7.4.4 Montenegro

According to IMF estimates, GDP growth in Montenegro stood at 3.7%, with the same rate forecast for 2025. In the services and IT sectors, the country should remove more barriers to facilitate entry and employment in these areas, as well as implement reforms and invest in the green economy to align with the European Union's standard of living.

Inflation in 2024 was reported at 2.1% by Eurostat and 4.2% by the IMF. The easing of price pressures at the EU level is expected to result in a gradual moderation, with the IMF forecasting an average of 3% per year over 2025–2027.

The unemployment rate reached 11.0% at the end of September (13.1% at the end of 2023). The total number of unemployed in Montenegro at the end of November was 33,205.

Both S&P Global and Moody's upgraded Montenegro's credit rating in 2024. S&P Global twice positively assessed Montenegro's creditworthiness, revising its "B" rating from stable to positive in March, then upgrading it from "B" to "B+" with a stable outlook in August. The key factors behind the upgrade were a significant reduction in public debt, high nominal GDP growth, continued progress on structural reforms as part of the EU accession process and a recovery in the tourism sector, which strengthened Montenegro's balance-of-payments position. Moody's upgraded the rating from "B1" to "Ba3" with a stable outlook, confirming that Montenegro is improving its economic parameters, achieving macroeconomic stability, and providing positive signals and security to both existing and potential investors.

Development of Montenegro's
insurance market
Premium per capita
(data for 2023)		 EUR 194
Premium as percentage in GDP
(data for 2023)		 1.7%
Insurance market growth index
in 2024		 112.3

Source: Insurance Supervision Agency of Montenegro

Insurance market As at 31 December 2024, a total of nine insurance companies were active in Montenegro's insurance market (five non-life insurers and four life insurers), generating 12.3% more written premium than the year before. The non-life premium volume grew by 17.6% and the life premium volume by 11.1%. In total written premium, non-life insurance continued to account for the bulk (79.3%).

The Triglav Group, represented by Lovćen Osiguranje and Lovćen životna osiguranja in Montenegro, maintained its leading position in the market, securing a 34.6% market share (compared to 35.0% in the previous year). The Group is followed by Sava Osiguranje and Uniqa Group (non-life and life insurance together) with a 16.9% and 16.0% market share respectively. Both Group members recorded 11.1% premium growth.

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7.4.5 Bosnia and Herzegovina

S&P Global affirmed Bosnia and Herzegovina's sovereign credit rating of »B+« with a stable outlook for 2024.

Over the past two decades, Bosnia and Herzegovina has made significant development progress, achieving upper middle-income status and becoming a candidate for European Union membership. Further development requires economic and energy structural reforms as well as improved coordination at all government levels.

According to the latest World Bank analysis (March 2024), Bosnia and Herzegovina has significantly reduced its external current account deficit. However, major challenges remain, with real GDP lagging behind regional peers and living standards at approximately one-third of the European Union average.

The IMF forecasts Bosnia and Herzegovina's economic growth at 2.5% in 2024, double that of the previous year. However, it warns of rising budget deficits and excessive public spending, which could threaten sustainable development. Encouragingly, inflation continues to decline and is expected to drop from 6.1% in 2023 to 2.2% in 2024.

The number of unemployed fell by 7% (as of October 2024), with the IMF estimating an unemployment rate of 13.2%.

Insurance market

Development of Bosnia and Herzegovina's insurance market

Premium per capita
(data for 2023)		 EUR 157
Premium as percentage in GDP
(data for 2023)		 2.0%
Insurance market growth index

in 2024 110.3

Source: FBIH Insurance Supervision Agency, RS Insurance Agency

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

As at 31 December 2024, a total of 24 insurance companies were active on the very small but highly competitive insurance market of Bosnia and Herzegovina, of which 10 were domiciled in the Federation of BiH and 14 in Republika Srpska, including branches. In the BiH market as a whole, written premium increased by 10.3%, with premium in the Federation of BiH growing by 9.9% and in Republika Srpska by 11.1%. In total written premium, non-life insurance premium remained dominant, accounting for 80.9%.

The Agram corporate group (Adriatic osiguranje and Euroherc) retained its leading market position in the Federation of BiH, holding a 23.6% market share. Triglav Osiguranje, Sarajevo held a 9.7% market share (2023: 10.6%), ranking fourth (compared to third the previous year).

Holding an 11.5% market share, Grawe osiguranje maintained a dominant position in the Republika Srpska market. Triglav Osiguranje, Banja Luka and Triglav Osiguranje, Sarajevo branch together achieved a 5.5% market share (down by 1.1 percentage points from the previous year) and ranked eighth (compared to fifth the year before).

In Bosnia and Herzegovina, the Triglav Group held an 8.3% market share (a decrease of 1.0 percentage point year-on-year), ranking fifth among the insurance groups.

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7.4.6 North Macedonia

North Macedonia's economy is projected to grow by 2.2% in 2024 according to the IMF, and by 2.1% in 2025, according to the North Macedonian Ministry of Finance. Meanwhile, the IMF forecasts a stronger growth of 3.6% in 2025.

The annual inflation rate has been volatile in recent years, fluctuating between negative and significant positive values. While inflation is expected to decline in 2024 (IMF estimate: 3.3%, Eurostat: 3.5%), the country faces significant challenges in maintaining price stability. The World Bank identified several factors contributing to inflationary pressures in North Macedonia, including rising commodity prices, labour market imbalances and fiscal imbalances. The country's high public debt and reliance on external financing could further exacerbate inflation. For 2025, the IMF forecasts inflation at 2.0%.

The unemployment rate declined in 2024, reaching 12.3% in the third quarter, while the labour force participation rate reached 52.6%. The Ministry of Finance forecasts the unemployment rate at 12.5% and expects it to fall to 11.2% in 2025.

Insurance market

Development of North Macedonia's
insurance market		 premium growth (index 131).
Premium per capita
(data for 2023)		 EUR 128
Premium as percentage in GDP
(data for 2023)		 1.7%
Insurance market growth index
in 2024		 111.3

Source: Insurance Supervision Agency of North Macedonia

A total of 17 insurance companies were active in North Macedonia's insurance market (11 non-life insurers and six life insurers). Total written premium increased by 11.3% in 2024. Non-life insurance premium, accounting for 81.9% of total written premium (0.8 percentage points lower than the previous year), grew by 10.3%, while life insurance premium rose by 16.3%.

The Triglav Group operates

through two insurers, which together achieved a market share of 13.8% (2023: 13.4%), maintaining its third place among insurance groups. Holding a 10.1% market share (down 0.1 percentage points year-on-year), Triglav Osiguruvanje, Skopje ranked second among insurers. Specialising in non-life insurance, it maintained a 12.4% market share. Triglav Osiguruvanje Život, Skopje significantly increased its share in the life insurance market to 20.5% (2023: 18.1%), thanks to strong

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7.4 Triglav Group's key insurance markets

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7.5 Asset and investment fund management market in Slovenia

A total of five asset management companies operated in Slovenia, which managed the net asset value of EUR 6.2 billion in mutual funds as at 31 December 2024, up by 31% year-on-year. Triglav Skladi is one of the leading asset managers in investment funds, with a market share of 30.8% (compared to 31.2% in 2023). In 2024, it managed EUR 1.9 billion in mutual fund assets, up by 29% year-on-year.

Discretionary mandate services, provided by four companies, accounted for EUR 2.7 billion of discretionary mandate assets at the 2024 year-end, down by 3% relative to the 2023 year-end. Triglav Skladi increased its market share in the discretionary mandate segment to 12.7% (2023: 7.6%), and its assets under management rose by 61% to EUR 336.1 million .

Accounting report

Appendix

8. Operations of the Triglav Group and Zavarovalnica Triglav

  • The Triglav Group performed well, exceeding expectations. Its results were also positively impacted by one-off events, particularly in the Health segment.
  • Earnings before tax totalled EUR 159.0 million, reflecting strong performance across all business segments.
  • The situation in the financial markets had a positive impact on the return on the Group's investments, with claims development being relatively favourable.
  • The combined ratio for the Non-Life and Health segments stood at a favourable 93.6%.

In 2024, the Group achieved earnings before tax of EUR 159.0 million in 2024 (2023: EUR 21.1 million), surpassing the mid-year estimate of EUR 130–150 million. Of this amount, EUR 16.1 million relates to discontinued operations (2023: EUR –27.8 million), specifically the effects of the terminated supplemental health insurance business in Slovenia. The remaining EUR 142.9 million represents the result from continuing operations (2023: EUR 48.8 million). Net earnings amounted to EUR 131.4 million (2023: EUR –16.3 million). The Group achieved strong performance across all activities and business segments. Net earnings were also positively impacted by one-off events (state compensation received and the release of provisions in the Health segment, both relating to discontinued operations, and the sale of an associate). Backed by significant asset-liability maturity matching, other comprehensive income amounted to EUR 6.3 million (2023: EUR 34.7 million). Return on equity was 14.0%, driven by the strong increase in net earnings.

The total business volume was EUR 1,717.6 million, compared to a target of approximately EUR 1.6 billion. It was down 1% year-on-year due to the termination of supplemental health insurance in Slovenia, which in 2023 generated EUR 190.0 million in written premium. Excluding the written premium from terminated insurance, total business volume growth would have been 11%.

Zavarovalnica Triglav achieved earnings before tax of EUR 117.6 million (2023: EUR 15.8 million) and net earnings of EUR 98.2 million (2023: EUR 14.2 million). Earnings before tax from continuing operations, i.e. excluding supplemental health insurance, amounted to EUR 101.4 million,

compared to EUR 43.5 million the previous year (for further details on the merger of Triglav, Zdravstvena zavarovalnica and its impact see Sections 2.7 Merger of the subsidiary Triglav, Zdravstvena zavarovalnica, 2.9 Reporting by business segment and 3.7.6 Non-current assets held for sale and discontinued operations in the Accounting Report). The insurance operating result of EUR 84.4 million (2023: EUR –10.6 million) was predominantly influenced by a decrease in claims incurred in the Health and Non-Life segments. The net investment result grew by 36% to EUR 33.8 million. It was positively influenced by higher interest income (index 130) and returns on alternative investment classes, whereas the corresponding gains on disposal of investments in associates were lower than last year due to lower dividend income (index 49). In the past year, a positive impact on the net investment result (and thus on earnings before tax) was recorded due to the release of provisions for not achieving the guaranteed yield, amounting to EUR 4.3 million was recorded, but this was not the case in 2024. The Company's other comprehensive income amounted to EUR 0.7 million (2023: EUR 33.3 million), influenced by changes in required yields in 2024.

Certain categories of the Group's operations and the structure of earnings generated in 2024 are explained in more detail below.

The Group's total revenue of EUR 1,393.2 million was down 2%, primarily due to lower insurance revenue in the Health segment following the termination of supplemental health insurance. Insurance revenue declined by 4% to EUR 1,298.0 million, whereas income from asset management grew by 24% to EUR 49.4 million and other income rose by 34% to EUR 45.9 million, mainly due to the state compensation under the Decree on setting the maximum price of the supplemental health insurance premium of EUR 11.0 million.

Insurance revenue of the Triglav Group by segment (EUR million)

2024 Key Highlights

8. Operations of the Triglav Group and Zavarovalnica Triglav

8.1 Non-Life segment 8.2 Life segment 8.3 Health segment

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Insurance service expenses fell considerably (by 25%) and amounted to EUR 991.8 million. The decline was attributable to an 84% reduction in insurance service expenses in the Health segment following the termination of supplemental health insurance, as previously noted, and a 13% reduction in the Non-Life segment, primarily due to high CAT claims in the previous year. The Life segment expenses were 11% higher.

The Group's combined ratio for the Non-Life

and Health segments stood at favourable 93.6%, down by 8.3 percentage points year-onyear. Backed by a relatively favourable claims development, the combined ratio for the Non-Life segment improved by 5.6 percentage points to 94.0%, and the combined ratio of the Health segment improved by 28.2 percentage points to 84.1% The key drivers of its significant decrease were lower insurance service expenses for health insurance claims due to the termination of supplemental health insurance and the release of provisions for this insurance. On the revenue side, the decrease was influenced by state compensation under the Decree on setting the maximum price of the supplemental health insurance premium (see Section 8.3 Health segment for more information). Excluding the impact of supplemental health insurance (i.e. discontinued operations), the combined ratio for the Health segment would have been 117.8% (with a claims ratio of 73.3% and an expense

Combined ratio for the Non-Life and Health segments of the Triglav Group

ratio of 44.5%). The total combined ratio for the Non-Life and Health segments would have been 94.9% (with a claims ratio of 66.6% and an expense ratio of 28.3%). The increase in the expense ratio to 28.1% (2023: 25.6%) was mainly driven by the changed structure of insurance revenue following the termination of supplemental health insurance, which had a high claims ratio and a low expense ratio. Excluding the impact of supplemental health insurance, the expense ratio would have been 28.8% in 2023.

The combined ratio for the Non-Life and Health segments decreased across most insurance markets, with the exception of Montenegro (higher claims ratio). In Croatia, the combined ratio exceeded 100%, reaching 104.5%, though this marked a 3.6 percentage point decrease compared to the previous year. As a result of the insurance portfolio adjustment, an improvement in profitability in this market is expected to continue.

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8. Operations of the Triglav Group and Zavarovalnica Triglav 8.1 Non-Life segment

8.2 Life segment 8.3 Health segment

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The Group's CSM of new contracts amounted to EUR 48.8 million (index 115), the bulk of which (84%) was generated in the Life segment and the remaining 16% in the Non-Life segment. The share of the CSM of new contracts in total contractual service margin was 17.0%, a decrease of 0.7 percentage points year-on-year, also due to an increase in the contractual service margin resulting from changes in expected cash flows. The release of the contractual service margin to profit or loss amounted to EUR 47.7 million in the reporting period, up by 20% year-on-year.

As at 31 December 2024, the Group's contractual service margin amounted to EUR 286.8 million, up by EUR 48.4 million (index 120). This was primarily due to changes in expected cash flows arising from adjustments in assumptions in the Life segment (see Section 8.2 Life segment for further details).

Structure of earnings before tax of the Triglav Group*

2024 2023
Non-Life Life Health Asset
Management		 Total Non-Life Life Health Asset
Management		 Total
Insurance operating result 69,084,585 19,804,608 8,620,876 97,510,069 3,641,356 16,684,632 –27,377,596 –7,051,608
Insurance revenue 1,156,299,596 98,399,942 43,252,835 1,297,952,373 1,042,646,914 85,367,869 223,171,882 1,351,186,665
State compensation pursuant to the Decree on supplemental health insurance premium 10,996,355 10,996,355 0
Claims incurred 627,530,982 27,161,982 23,996,976 678,689,940 769,196,929 25,603,176 226,446,868 1,021,246,973
Acquisition and administrative costs incl. non-att. items 304,338,440 48,590,117 18,007,025 370,935,582 290,661,755 42,030,166 25,319,883 358,011,804
Net reinsurance service result –139,958,713 272,006 –1,244,211 –140,930,918 29,702,036 1,619,193 285,341 31,606,570
Net other insurance revenue and expenses –15,386,876 –3,115,241 –2,380,102 –20,882,219 –8,848,910 –2,669,088 931,932 –10,586,066
Net investment result 32,865,549 10,523,083 1,247,919 4,355,021 48,991,572 11,039,199 1,942,121 –2,945,661 12,196,256 22,231,915
Result from non-insurance operations –1,118,837 9,987 472,074 13,177,336 12,540,560 –132,442 317,352 –1,089,949 6,785,169 5,880,130
Insurance service expenses to insurance revenue 49,364,063 49,364,063 39,685,487 39,685,487
Operating expenses 13,510,736 7,818,872 3,684,670 36,417,154 61,431,432 13,147,035 8,160,186 1,506,833 31,269,108 54,083,162
Net other income and expenses 12,391,899 7,828,859 4,156,744 230,427 24,607,929 13,014,593 8,477,538 416,884 –1,631,210 20,277,805
Earnings before tax 100,831,298 30,337,678 10,340,868 17,532,357 159,042,201 14,548,113 18,944,105 –31,413,205 18,981,424 21,060,437
Earnings before tax of discontinued operations 16,147,704 16,147,704 –27,775,868 –27,775,868
Earnings before tax of continuing operations 100,831,297 30,337,678 –5,806,835 17,532,357 142,894,497 14,548,113 18,944,105 –3,637,338 18,981,424 48,836,305

* The presentation of the Health segment includes the health insurance business of the Group insurance companies that sell these insurance products and the non-insurance company complementing this business, whereas last year it only included Triglav, Zdravstvena zavarovalnica. The Health segment presentation also includes the investment portion of own insurance portfolios. The change therefore affects the Non-Life segment presentation.

The Group's insurance operating result amounted to EUR 97.5 million (2023: EUR –7.1 million), with strong growth achieved by all three segments. The Non-Life segment's insurance operating result (EUR 69.1 million) was mainly positively affected by an 11% increase in insurance revenue due to past premium adjustments and business volume growth and a sharp 18% decrease in claims incurred (see Section 8.1 Non-Life segment for more information). The insurance operating result before tax of the Life segment increased by 19% to EUR 19.8 million (see Section 8.2 Life segment for more information). In the Health segment, the operating result reached EUR 8.6 million, while last year it amounted to EUR –27.4 million (see Section 8.3 Health segment for more information on this and the impact of discontinued operations).

The net reinsurance service result, with a relatively normal volume of CAT claims, amounted to EUR –140.9 million (compared to EUR 31.6 million in the previous year, which was positive due to an exceptionally high volume of CAT claims). Furthermore, due to the increased business volume and slightly less favourable reinsurance conditions (primarily NAT CAT protection), reinsurance expenses rose (index 109).

Acquisition and administrative costs including non-attributable items were 4% higher. The increase was recorded in the Life and Non-Life segments.

The net investment result grew to EUR 49.0 million (2023: 22.2 million), driven by favourable trends in financial markets and gains on disposal of a participating interest in an associate. The investment result amounted to EUR 159.7 million (2023: EUR 83.8 million), whereas the financial result from insurance contracts was negative at EUR –118.5 million (2023: EUR –69.7 million). Gains on disposal of investments in associates amounted to EUR 6.9 million (index 310) and impairment losses on investments in associates and joint ventures amounted to EUR –66 thousand (2023: EUR –2.3 million). The change in provisions for not achieving the guaranteed yield of EUR 908 thousand had a positive impact on the result, but to a lesser extent than in the previous year (2023: EUR 8.1 million).

The result from non-insurance operations before tax rose to EUR 12.5 million (2023: EUR 5.9 million). In this respect, earnings before tax of EUR 13.2 million (index 194) were recorded in the Asset Management segment (non-insurance operations), EUR 472 thousand in the Health segment, and EUR –1.1 million in the Non-Life segment. Income from asset management rose by 24%, operating expenses were 16% higher and net other income amounted to EUR 230 thousand (2023: EUR –1.6 million).

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Earnings before tax of the Triglav Group by segments (EUR million)

Operating expenses

2023 2024

The Group's consolidated operating expenses, including other attributable insurance service expenses, grew by 5% to EUR 450.8 million. Operating expenses for continuing operations increased by 9%. Operating expenses were 7% higher year-on-year at EUR 463.9 million, while other attributable insurance service expenses were up 28% (EUR 30.5 million). The change in deferred acquisition costs reduced operating expenses by EUR 27.4 million (index 201), driven by an increase in written premium.

Operating expenses of the Triglav Group by nature

2024 2023 Index Share
Acquisition costs 107,782,991 92,666,926 116 23.2%
Cost of goods sold 52,458 –65,286 0.0%
Depreciation/amortisation costs 27,327,519 26,291,666 104 5.9%
Depreciation/amortisation costs of leased assets 6,054,268 6,699,012 90 1.3%
Depreciation/amortisation costs of other operating assets 21,273,251 19,592,654 109 4.6%
Labour costs 206,498,232 197,947,600 104 44.5%
Wages and salaries 143,838,211 136,779,849 105 31.0%
Social and pension insurance costs 31,205,439 29,779,769 105 6.7%
Other labour costs 31,454,582 31,387,982 100 6.8%
Costs of services 122,191,835 117,264,369 104 26.3%
Costs of advertising, representation and sponsorship 25,736,029 23,610,478 109 5.5%
Maintenance costs 16,873,880 16,722,521 101 3.6%
Costs of material and energy 8,524,083 10,047,184 85 1.8%
Costs of payment transactions and banking services 2,381,188 2,550,277 93 0.5%
Insurance premium costs 2,073,784 2,113,737 98 0.4%
Costs of intellectual services 9,466,647 9,403,593 101 2.0%
Training costs 1,704,344 1,559,320 109 0.4%
Expenses for short-term leases, low-value leases and other leases 9,396,303 8,276,770 114 2.0%
Costs of transport and communications services 5,540,728 6,459,293 86 1.2%
Reimbursement of labour-related costs 5,596,351 5,596,541 100 1.2%
Costs of services provided by natural persons other than sole proprietors 2,186,331 2,070,808 106 0.5%
Other costs of services 32,712,167 28,853,847 113 7.1%
Total operating expenses (1) 463,853,035 434,105,275 107 100.0%
Other attributable insurance service expenses (2) 30,452,813 23,795,694 128
Change in deferred acquisition costs (3) –27,435,542 –13,616,542 201
Total (1+2+3) 466,870,306 444,284,427 105
Elimination of intercompany transactions –16,023,214 –15,269,700 105
Total consolidated (1+2+3+4) 450,847,092 429,014,727 105
Costs and other attributable insurance service expenses of discontinued operations
(5)		 –1,177,761 –15,470,939 8
Total costs and insurance service expenses of continuing operations
(1 + 2 + 3 + 4 + 5)		 449,669,331 413,543,788 109

Acquisition costs of EUR 107.8 million were 16% higher. The significant increase in this segment of operating expenses was driven by the higher volume of transactions concluded under the principle of free movement of services (FOS) in the EU and via the Greece branch (under the FOE principle), as well as by the increased volume of written premium from insurance policies taken out via external sales channels.

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8. Operations of the Triglav Group and Zavarovalnica Triglav

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Appendix

At 44.5%, labour costs accounted for the largest portion of total expenses. They amounted to EUR 206.5 million, up by 4% year-on-year. The increase in labour costs was driven by salary increases, a higher number of employees at some subsidiaries, and higher salary costs for agents due to premium growth at the parent company. Total growth in employees' salaries was 5%, while other labour costs remained roughly at the same level as the previous year (index 100). The main contributing factor was lower employee benefits at the parent company.

Costs of services amounting to EUR 122.2 million grew by 4%. Among them, the bulk was accounted for by other costs of services (EUR 32.7 million), costs of advertising, representation and sponsorships (EUR 25.7 million), and maintenance costs (EUR 16.9 million). The main contributors to the growth of this group of costs were:

  • other costs of services (index 113), primarily driven by higher fees at Triglav Skladi due to higher net inflows;
  • expenses for short-term leases, low-value leases and other leases (index 114), where growth was mainly achieved by the costs of rentals and leases in the IT area (particularly due to digitalisation);
  • costs of advertising, representation and sponsorships (index 109), in particular higher costs of advertising and sponsorships.

Operating expenses of the Triglav Group

A significant reduction in costs was achieved in costs of materials and energy (index 85), costs of transport and communications services (index 86), and costs of payment transactions and banking services (index 93).

Non-consolidated operating expenses from insurance operations amounted to EUR 405.6 million, up by 6%, predominantly due to an increase in acquisition costs and labour costs. Attributable costs of EUR 349.5 million accounted for 86.2% of expenses from insurance operations, while non-attributable costs accounted for the remaining 13.8%. Non-consolidated expenses from non-insurance operations increased by 16% and totalled EUR 58.3 million, mainly as a result of higher labour costs (predominantly Triglav zdravje asistenca due to redeployment of some employees from Triglav, zdravstvena zavarovalnica) and higher other costs of services (mainly fees at Triglav Skladi due to an increase in net asset value of assets under management). The increase in other attributable insurance service expenses (index 128) was driven by higher other insurance service expenses at the parent company (contributions and benefits in Poland and Greece, higher claim handling expenses and costs of assistance services), expenses for fire fee and the parent company's healthcare contributions.

2024 2023
Operating
expenses		 Other
attributable
insurance
service
expenses		 Changes in
deferred
acquisition
costs		 Elimination of
intercompany
transactions		 Total Total
continuing
operations		 Operating
expenses		 Other
attributable
insurance
service
expenses		 Changes in
deferred
acquisition
costs		 Elimination of
intercompany
transactions		 Total Total
continuing
operations
Attributable costs 349,515,846 30,452,813 –27,435,542 –2,873,853 349,659,264 348,718,362 328,462,819 23,592,298 –13,616,542 –2,592,319 335,846,256 322,419,212
Attributable acquisition costs 235,989,740 214,163 –27,435,542 –1,022,550 207,745,811 207,707,707 214,668,318 213,309 –13,616,542 –1,080,481 200,184,604 199,299,814
Attributable claim handling expenses 29,527,952 7,007,582 0 36,535,534 36,527,721 29,992,668 3,844,303 0 33,836,971 33,735,738
Attributable administrative costs 83,998,154 23,231,068 0 –1,851,303 105,377,919 104,482,935 83,801,833 19,534,686 0 –1,511,838 101,824,681 89,383,659
Non-attributable costs 56,064,132 0 0 –10,700,778 45,363,354 45,126,494 55,217,194 203,396 0 –10,469,734 44,950,856 42,906,961
Insurance operations (1) 405,579,978 30,452,813 –27,435,542 –13,574,631 395,022,618 393,844,857 383,680,013 23,795,694 –13,616,542 –13,062,053 380,797,112 365,326,173
Non-insurance operations (2) 58,273,056 –2,448,583 55,824,474 55,824,473 50,425,262 –2,207,647 48,217,615 48,217,615
Total (1 + 2) 463,853,034 30,452,813 –27,435,542 –16,023,214 450,847,091 449,669,330 434,105,275 23,795,694 –13,616,542 –15,269,700 429,014,727 413,543,788
Index
Attributable costs 106 129 201 111 104 108
Attributable acquisition costs 110 100 201 95 104 104
Attributable claim handling expenses 98 182 0 0 108 108
Attributable administrative costs 100 119 0 122 103 117
Non-attributable costs 102 0 0 102 101 105
Insurance operations (1) 106 128 201 104 104 108
Non-insurance operations (2) 116 0 0 111 116 116
Total (1 + 2) 107 128 201 105 105 109

Business report 2024 Key Highlights

  1. Address by the President of the Management Board 2. Triglav Group and Zavarovalnica Triglav in 2024

  2. The share and shareholders of Zavarovalnica Triglav 7. Macroeconomic environment and market trends

  3. Report of the Supervisory Board 4. Triglav Group strategy and plans 5. Corporate Governance Statement

  4. Operations of the Triglav Group and

  5. Digital Operational Resilience Report

Zavarovalnica Triglav 8.1 Non-Life segment 8.2 Life segment 8.3 Health segment 8.4 Asset Management 8.5 Non-Life segment 9. Risk management 10. Sustainability report

Accounting report

Appendix

Investments

The Triglav Group manages its investment portfolio conservatively to ensure adequate investment yield, safety and liquidity, aiming to achieve a high credit rating for the total portfolio. In accordance with its sustainable development policy, environmental, social and governance (ESG) aspects are being enhanced in investment processes.

Through active investing, the Group maintained an investment portfolio structure comparable to that at the end of 2023, with its value increasing to EUR 3,906.1 million (index 115). The bulk of the total investment portfolio, i.e. 53.6%, was accounted for by bonds invested in developed markets, most of which have a high credit rating. Their value, as well as the value of the equity portfolio, was mainly affected by the favourable situation on the financial markets. The structure of financial investments is discussed in greater detail in Section 3.4 of the Accounting Report.

The majority of unit-linked insurance assets is accounted for by assets invested in mutual funds of the policyholders' choice, mainly in funds managed by Triglav Skladi. As at 31 December 2024, these assets amounted to EUR 678.9 million (index 126).

As at 31 December 2024, the Group's financial investments from financial contracts amounted to EUR 739.5 million, up by 14% year-on-year. They include individual and group supplemental voluntary pension insurance contracts of the parent company and Triglav, pokojninska družba. Financial contract assets and the types of financial investments from financial contracts are discussed in greater detail in Section 3.5 of the Accounting Report.

Sustainable fixed-income investments increased by 29% to EUR 339.4 million, raising their share of the total bond portfolio to 12.9% (31 December 2023: 11.1%). The table is included in Section 10.2.1.3 Services and products promoting social and environmental benefits.

As at the reporting date, the Company's investments stood at EUR 2,842.6 million, 14% higher than the previous year.

Backed by a favourable trend in the financial markets, the Group's investment result amounted to EUR 159.8 million in 2024 (2023: EUR 83.8 million). The result excluding unit-linked life insurance assets amounted to EUR 61.8 million (index: 180). Taking into account the financial result from insurance contracts of EUR –118.5 million, the change in provisions for not achieving the guaranteed yield in the amount of EUR 908 thousand (2023: EUR 8.1 million), and gains and impairments of investments in associates of EUR 6.9 million, the impact of the investment result on the Group's earnings was positive in the amount of EUR 49.0 million (2023: EUR 22.2 million).

Investments of the Triglav Group as at 31 December 2024 and 31 December 2023

Investments Index Share
31 Dec 2024 31 Dec 2023 2024/2023 31 Dec 2024 31 Dec 2023
Investment property 70,411,373 67,953,773 104 1.8% 2.0%
Investments in associates and joint ventures 55,621,373 37,708,062 148 1.4% 1.1%
Shares and other variable-income securities 200,682,891 168,680,198 119 5.1% 5.0%
Debt and other fixed-income securities 2,092,633,169 1,860,044,900 113 53.6% 54.7%
Loans given 6,622,689 6,557,903 101 0.2% 0.2%
Bank deposits 60,833,549 65,794,876 92 1.6% 1.9%
Other financial instruments 909,337 872,414 104 0.0% 0.0%
Total (1) 2,487,714,381 2,207,612,126 113 63.7% 65.0%
Unit-linked life insurance assets (2) 678,910,235 540,890,478 126 17.4% 15.9%
Financial investments from financial contracts (3) 739,510,939 650,042,171 114 18.9% 19.1%
Total (1 + 2 + 3) 3,906,135,555 3,398,544,775 115 100.0% 100.0%

Investments of Zavarovalnica Triglav as at 31 December 2024 and 31 December 2023

Investments Index Share
31 Dec 2024 31 Dec 2023* 2024/2023 31 Dec 2024 31 Dec 2023
Investment property 44,971,145 43,427,181 104 1.6% 1.7%
Investments in subsidiaries 196,624,457 195,624,458 101 6.9% 7.9%
Investments in associates and joint ventures 55,059,388 37,218,841 148 1.9% 1.5%
Shares and other variable-income securities 152,938,524 118,763,970 129 5.4% 4.8%
Debt and other variable-income securities 1,450,298,136 1,312,299,502 111 51.0% 52.8%
Loans given 5,306,572 4,547,639 117 0.2% 0.2%
Bank deposits 7,212,864 7,212,364 100 0.3% 0.3%
Other financial instruments 19,810 0 0 0.0% 0.0%
Total (1) 1,912,430,896 1,719,093,954 111 67.3% 69.1%
Unit-linked life insurance contract investments (2) 645,594,699 512,824,007 126 22.7% 20.6%
Financial investments from financial contracts (3) 284,582,910 255,841,272 111 10.0% 10.3%
Total (1 + 2 + 3) 2,842,608,505 2,487,759,233 114 100.0% 100.0%

* The figures for 2023 have been adjusted to reflect the merger of Triglav, Zdravstvena zavarovalnica.

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2024 Key Highlights 1. Address by the President of the Management Board

8. Operations of the Triglav Group and Zavarovalnica Triglav 8.1 Non-Life segment

8.2 Life segment 8.3 Health segment 8.4 Asset Management

Accounting report

Appendix

Return on financial investments of the Triglav Group

The return on unit-linked life insurance assets is part of the total investment result, but at the same time it affects the financial result from insurance contracts in the opposite amount. It stood at EUR 98.0 million (2023: EUR 49.6 million). Gains and impairments of investments in associates rose to EUR 6.9 million (2023: EUR –39 thousand) due to the sale of a participating interest in an associate. The total return on the Group's financial investments was thus 100% higher at EUR 68.6 million. Net gains on financial investments at fair value through profit or loss recorded significant profits, driven by exceptionally high growth in equity investments. High growth was achieved in both the management of unit-linked life insurance assets (index 198) and in the management of own financial investments at fair value through profit or loss (index 144). Interest income rose by 35%, primarily due to higher interest rates. The net reversal of impairment of financial investments amounted to EUR 3.3 million, primarily due to the disposal of previously impaired debt investments. Dividend income amounted to EUR 2.6 million, down by 4%. The rate of return on investments of the Group (excluding unit-linked insurance assets) was 3.0%, up by 1.4. percentage points year-on-year. Excluding exchange rate differences, the rate of return at Group level was 3.0% (2023: 1.7%). The significant positive impact on returns was attributed to interest income, which amounted to EUR 47.3 million (2023: EUR 35.1 million) and the high growth of equity markets, contributing EUR 8.8 million euro (2023: EUR 6.1 million). In the return on investments, EUR –3.3 million relates to the loss on the sale of bonds and EUR 3.0 million to the reversal of a prior impairment for the same bonds. Therefore, the net result is not affected by the sale at a loss, as the bonds

were previously impaired accordingly.

Return on financial investments Return excluding unit-linked
life insurance assets
2024 2023 Index 2024 2023 Index
Interest income calculated using the effective interest method 47,286,696 35,098,297 135 47,286,696 35,098,297 135
Dividend income 2,599,868 2,705,064 96 2,599,868 2,705,064 96
Net gains/losses on financial investments at fair value through profit or loss 106,774,705 55,709,619 192 8,839,813 6,126,387 144
Net gains/losses on financial investments at amortised cost –335 464 –335 464
Net gains/losses on financial investments at fair value through other comprehensive income –3,314,398 –9,304,016 36 –3,314,398 –9,304,016 36
Net impairment/reversal of impairment 3,334,270 2,291,758 145 3,334,270 2,291,758 145
Other investment income/expenses 3,065,770 –2,669,998 61,738,356 –2,646,409
Total return on financial investments (1) 159,746,576 83,831,188 191 6,878,092 34,271,545 180
Gains/losses and impairments of investments in associates (2) 6,878,092 –38,776 68,616,448 –38,776
Total (1 + 2) 166,624,668 83,792,412 199 61,738,356 34,232,769 200
Rate of return on investment 5.8% 3.2% 2.6 p.p. 3.0% 1.6% 1.4 p.p.

Return on financial investments of Zavarovalnica Triglav

Return on financial investments Return excluding unit-linked
life insurance assets
2024 2023* Index 2024 2023* Index
Interest income calculated using the effective interest method 29,070,766 22,302,286 130 29,070,767 22,302,286 130
Dividend income 2,019,695 2,441,534 83 2,019,696 2,441,534 83
Net gains/losses on financial investments at fair value through profit or loss 101,301,907 49,870,224 203 6,125,799 3,645,078 168
Net gains/losses on financial investments at fair value through other comprehensive income –2,543,756 –9,082,410 28 –2,543,756 –9,082,410 28
Net impairment/reversal of impairment 2,754,998 1,490,903 185 2,754,998 1,490,903 185
Other investment income/expenses 2,257,704 73,109 3,088 2,258,064 73,289 3,081
Total return on financial investments (1) 134,861,316 67,095,646 201 39,685,568 20,870,680 190
Gains/losses and impairments of investments in associates (2) 9,032,880 16,304,050 55 9,032,880 16,304,050 55
Total (1 + 2) 143,894,196 83,399,696 173 48,718,448 37,174,730 131
Rate of return on investments 6.1% 3.8% 2.3 p.p. 2.8% 2.2% 0.6 p.p.

* The figures for 2023 have been adjusted to reflect the merger of Triglav, Zdravstvena zavarovalnica.

2024 Key Highlights

8.1 Non-Life segment

Accounting report

Appendix

Equity

The Triglav Group's total equity as at 31 December 2024 amounted to EUR 989.0 million, up by 11% relative to 31 December 2023. The Group's total equity represented 21.8% of total balance sheet liabilities, an increase of 0.1 percentage points. The increase was driven by higher net earnings for the period in the amount of EUR 131.4 million and other comprehensive income in the amount of EUR 6.3 million, while dividend payments reduced it by EUR 39.7 million. The parent company's controlling interests increased by 11% to EUR 984.9 million and non-controlling interests (due to the positive net earnings attributable to non-controlling interests for the period) rose by 13% to EUR 4.2 million. The share capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary shares. Zavarovalnica Triglav's total equity increased by 9% and amounted to EUR 741.6 million.

Net earnings for the year disclosed in the Group's balance sheet amounted to EUR 75.0 million and, due to the allocation of part of net earnings to other reserves from profit, were EUR 55.8 million lower than net earnings disclosed in the statement of profit or loss.

The Group's comprehensive income after tax amounted to EUR 137.7 million (2023: EUR 50.9 million) and the parent company's to EUR 98.9 million (2023: EUR 47.5 million).

8.1 Non-Life segment

The Non-Life segment delivered strong performance, with a favourable combined ratio of 94% in the insurance segment and an investment result that tripled compared to the previous year.

Performance results of the Non-Life segment of the Triglav Group

2024 2023 Index
Total business volume 1,304,374,331 1,177,658,738 111
Gross written insurance premium 1,274,332,716 1,152,716,491 111
Other income 30,041,614 24,942,247 120
Total revenue 1,186,349,643 1,067,589,161 111
Insurance operating result 69,084,585 3,641,356 1,897
Insurance revenue 1,156,299,596 1,042,646,914 111
Claims incurred 627,530,982 769,196,929 82
Acquisition and administrative costs including non-attributable costs 304,338,440 290,661,755 105
Net reinsurance service result –139,958,713 29,702,036
Net other insurance revenue and expenses –15,386,876 –8,848,910 174
Net investment result 32,865,549 11,039,199 298
Result from non-insurance operations –1,118,837 –132,442
Earnings before tax 100,831,298 14,548,113 693
Combined ratio 94.0% 99.7% –5.6 p.p.
CSM of new contracts/Total CSM 53.3% 38.0% 15.4 p.p.
Insurance service expenses to insurance revenue 26.3% 27.9% –1.6 p.p.
31 Dec 2024 31 Dec 2023 Index
Contractual service margin (CSM) 14,441,155 16,697,354 86
Risk adjustment (RA) 33,191,759 30,151,066 110
Net insurance contract liabilities 1,035,308,308 975,608,503 106
Net reinsurance contract assets 287,403,984 320,755,400 90

The total business volume of the Non-Life segment amounted to EUR 1,304.4 million, up by 11%. Gross written premium in the Non-Life segment grew at the same rate. In the Slovenian market, premium grew by 7%, in the international market by 21% and in other markets of the Adria region by 6%. Premium growth was achieved in most markets in the Adria region, with the exception of Bosnia and Herzegovina (index 93), where the decline in premium resulted from ownership consolidation and business optimisation, and Croatia (index 99), where the decline in premium was due to portfolio restructuring (index 99). High growth was recorded in non-life insurance premium in Serbia through the acquisition of new policyholders and the expansion of the scope of insurance coverage with existing policyholders. Premium growth was recorded in most non-life insurance groups, with the exception of other non-life insurance (a decrease in marine insurance premium due to a different accounting method at the parent company and the termination of cooperation with an agency in Croatia). The highest growth was seen in real property insurance (fire and natural disaster insurance and other damage to property insurance) and motor vehicle insurance.

2024 Key Highlights

Accounting report

Appendix

Total revenue of the Non-Life segment amounted to EUR 1,186.3 million, up by 11%. The increase was mostly influenced by the growth in insurance revenue due to higher insurance coverage, the impact of past premium rate rises on premium increases and the growth of insurance sales under the principle of free movement of services (FOS). In FOS transactions, the highest premium volume was recorded in motor vehicle insurance for individuals in Poland (EUR 56.3 million), reflecting a significant growth of 90%.

Non-Life insurance claims incurred, which comprise insurance service expenses for claims, the change in cash flows, the change in experience correction and the effects of allocation to onerous contracts, decreased by 18% to EUR 627.5 million at Group level and by 26% to EUR 396.4 million at the parent company. Insurance service expenses for claims, amounting to EUR 642.6 million, were 20% lower. The decrease in claims incurred was primarily driven by the very high CAT claims last year, alongside relatively favourable claims development.

The Group's Non-Life segment's insurance operating result amounted to EUR 69.1 million (2023: EUR 3.6 million). Influenced by an 11% increase in insurance revenue and a 28% decrease in claims incurred. Acquisition costs, administrative costs and non-attributable costs were 5% higher at EUR 304.3 million. The net reinsurance service result amounted to EUR –140.0 million (2023: EUR 29.7 million), predominantly resulting from lower reinsurance income (index 44) as a result of lower new claims ceded to reinsurance in 2024. Due to the increased business volume and slightly poorer reinsurance conditions, reinsurance expenses increased (index 107). The net investment result grew to EUR 32.9 million (index 298), mainly due to an increase in investment result (index 212) and gains on disposal of a participating interest in an associate (EUR 4.7 million). The result from non-insurance operations was negative at EUR –1.1 million, primarily due to higher interest payments on bonds issued and the impairment of past-due receivables. Earnings before tax of the Non-Life segment reached EUR 100.8 million, compared to EUR 14.5 million in the previous year.

The combined ratio for the Non-Life segment stood at favourable 94.0%, down by 5.6 percentage points year-on-year. Its improvement was driven by higher insurance revenue and lower claims incurred. The claims ratio and the expense ratio improved by 4.6 percentage points and 1.1 percentage points respectively.

Performance results of the Non-Life segment of Zavarovalnica Triglav

2024 2023 Index
Total business volume 880,069,706 784,928,919 112
Gross written insurance premium 866,712,583 773,815,847 112
Other income 13,357,123 11,113,072 120
Total revenue 824,375,017 720,307,430 114
Insurance operating result 54,508,347 1,493,091 3,651
Insurance revenue 811,017,894 709,194,358 114
Claims incurred 396,432,489 537,393,087 74
Acquisition and administrative costs including non-attributable costs 215,478,525 203,541,839 106
Net reinsurance service result –130,046,609 39,447,646
Net other insurance revenue and expenses –14,551,924 –6,213,987 234
Net investment result 24,947,939 19,420,462 128
Result from non-insurance operations –1,389,929 590,787
Earnings before tax 78,066,357 21,504,340 363
Combined ratio 93.3% 99.8% –6.5 p.p.
CSM of new contracts/Total CSM 57.4% 39.4% 18.0 p.p.
Insurance service expenses to insurance revenue 26.6% 28.7% –2.1 p.p.
31 Dec 2024 31 Dec 2023 Index
Contractual service margin (CSM) 13,420,019 15,732,207 85
Risk adjustment (RA) 15,135,083 11,724,267 129
Net insurance contract liabilities 688,541,300 687,817,381 100
Net reinsurance contract assets 249,027,855 305,976,870 81

2024 Key Highlights

Accounting report

Appendix

8.2 Life segment

The Life segment also delivered strong performance. Favourable trends were observed in the insurance segment and were particularly pronounced in the investment segment, which also benefited from favourable financial market conditions.

Performance results of the Life segment of the Triglav Group

2024 2023 Index
Total business volume 244,566,606 229,456,362 107
Gross written insurance premium 242,588,054 228,358,676 106
Other income 1,978,552 1,097,686 180
Total revenue 100,265,726 86,226,995 116
Insurance operating result 19,804,608 16,684,632 119
Insurance revenue 98,399,942 85,367,869 115
Claims incurred 27,161,982 25,603,176 106
Acquisition and administrative costs including non-attributable costs 48,590,117 42,030,166 116
Net reinsurance service result 272,006 1,619,193 17
Net other insurance revenue and expenses –3,115,241 –2,669,088 117
Net investment result 10,523,083 1,942,121 542
Result from non-insurance operations 9,987 317,352 3
Earnings before tax 30,337,678 18,944,105 160
CSM of new contracts/Total CSM 15.1% 16.2% –1.1 p.p.
New business margin 13.4% 14.6% –1.2 p.p.
Contractual service margin sustainability 1.1 1.2 92
Insurance service expenses to insurance revenue 49.4% 49.2% 0.1 p.p.
31 Dec 2024 31 Dec 2023 Index
Contractual service margin (CSM) 272,164,764 221,656,867 123
Risk adjustment (RA) 32,489,424 33,264,554 98
Net insurance contract liabilities 1,404,899,162 1,305,706,187 108
Net reinsurance contract assets 346,996 384,510 90

The Life segment includes life insurance business of insurance companies and non-insurance companies supporting this business (Triglav Svetovanje; Triglav Savjetovanje, Sarajevo; Triglav Savetovanje, Belgrade, in liquidation, and Triglav Savjetovanje, Zagreb, in liquidation). This segment's result also takes into account the investment portion of related own insurance portfolios.

The total business volume amounted to EUR 244.6 million, a 7% increase year-on-year. Gross written premium was up by 6%, with premium growth seen in all insurance markets. An 11% growth was seen in unit-linked life insurance, primarily as a result of higher premium payments at the parent company and the North Macedonian life insurer. Total revenue rose by 16%, driven by a 15% rise in insurance revenue and strong growth in other income (index 217).

The insurance operating result increased by 19% to EUR 19.8 million. It was mainly driven by higher insurance revenue due to the higher release of contractual service margin, risk premium and expected claims. Claims incurred, which in addition to insurance service expenses for claims comprise the change in cash flows, the change in experience correction, the effects of allocation to onerous contracts and other insurance expenses, increased by 6% at Group level and by 5% at the parent company; they amounted to EUR 27.2 million at Group level and EUR 17.6 million at the parent company. Their increase was mainly influenced by higher insurance service expenses for claims and the effects of the loss of onerous contracts.

The investment result before tax of the Life segment increased to EUR 10.5 million (index 542). The investment result rose to EUR 121.1 million (index 182), mainly due to higher interest income and strong growth in equity investments, while the negative financial result from insurance contracts of EUR –110. 6 million (index 171) was primarily driven by higher financial expenses due to an increase in unit-linked insurance liabilities. The result from non-insurance operations amounted to EUR 10 thousand (2023: EUR 317 thousand). Earnings before tax of the Life segment at Group level amounted to EUR 30.3 million (index 160).

Earnings before tax of the Company's Life segment rose to EUR 26.2 million (2023: EUR 19.3 million). The insurance operating result grew to EUR 18.4 million (index 124), primarily due to the higher release of both the contractual service margin and risk adjustment. The net investment result increased to EUR 7.6 million year-on-year (2023: EUR 4.1 million).

The Group's CSM of new life insurance contracts amounted to EUR 41.1 million, of which 42% was accounted for by unit-linked life insurance contracts and the rest by other life insurance contracts. The CSM of new contracts in total contractual service margin was 15.1%, down by 1.1 percentage points year-on-year. This decline was driven by changes in expected cash flows affecting the total contractual service margin and the reinsurance calculation for life insurance at the parent company, in accordance with IFRS 17. The release of the contractual service margin to profit or loss amounted to EUR 36.6 million compared to EUR 29.4 million in 2023.

In 2024, the new business margin of the Group's Life segment stood at 13.4%, down 1.2 percentage points from the previous year, predominantly due to a lower CSM of new contracts at the North Macedonian life insurer.

The Group's contractual service margin sustainability shows the ratio between the CSM of new contracts and the release of the contractual service margin to profit or loss as a result of cash flow maturity. It reached 1.1 in 2024 and 1.2 in 2023.

The contractual service margin of the Group's life insurance contracts increased by EUR 50.5 million and totalled EUR 272.2 million as at 31 December 2024. Its increase resulted from the positive difference between the CSM of new contracts and the release of the contractual service margin to profit or loss in the amount of EUR 4.5 million, the increase in other changes of EUR 2.5 million and the positive changes in expected cash flows of EUR 43.5 million due to the change in assumptions. The majority of the increase is attributable to the parent company (see note below).

Business report 2024 Key Highlights

Accounting report

Appendix

Performance results of the Life segment of Zavarovalnica Triglav

2024 2023 Index
Total business volume 195,443,569 192,632,794 101
Gross written insurance premium 194,421,298 186,343,262 104
Other income 1,022,271 6,289,532 16
Total revenue 77,469,581 67,026,807 116
Insurance operating result 18,431,324 14,833,611 124
Insurance revenue 76,553,208 66,444,361 115
Claims incurred 17,639,863 16,759,427 105
Acquisition and administrative costs including non-attributable costs 37,076,869 32,725,253 113
Net reinsurance service result –105,762 0
Net other insurance revenue and expenses –3,299,390 –2,126,070 155
Net investment result 7,642,237 4,059,745 188
Result from non-insurance operations 172,324 384,007 45
Earnings before tax 26,245,885 19,277,364 136
CSM of new contracts/Total CSM 13.0% 12.6% 0.4 p.p.
New business margin 14.6% 13.9% 0.7 p.p.
Contractual service margin sustainability 1.0 1.0 101
Insurance service expenses to insurance revenue 48.4% 49.3% –0.8 p.p.
31 Dec 2024 31 Dec 2023 Index
Contractual service margin (CSM) 257,806,279 209,642,299 123
Risk adjustment (RA) 29,240,452 31,137,721 94
Net insurance contract liabilities 1,272,022,364 1,186,898,681 107
Net reinsurance contract assets -8,336 0

The Company's CSM of new contracts amounted to EUR 33.5 million (index 127). The CSM of new contracts in total contractual service margin was 13.0%, up by 0.4 percentage points year-on-year. The release of the contractual service margin to profit or loss was also higher, amounting to EUR 32.6 million (index 125).

As at the reporting date, the Company's contractual service margin stood at EUR 257.8 million, 23% higher than the previous year. This increase stemmed from a positive change in expected cash flows of EUR 45.1 million, driven by revised assumptions about future business based on business decisions taken and a more favourable development of insurance portfolios than previously anticipated. The increase due to other changes amounted to EUR 2.2 million. The difference between the CSM of new contracts and the release of the CSM to profit or loss positively impacted the contractual service margin by EUR 0.9 million.

The Company's new business margin grew by 0.7 percentage points to 14.6%. This resulted from the higher profitability of new underwritten contracts, taking into account future increases in sums insured and written premium at the time of indexation. The Company's contractual service margin sustainability reached 1.0, the same as the previous year.

Movement in Zavarovalnica Triglav's CSM in the Life segment in 2024 (EUR million)

2024 Key Highlights

-

-

Accounting report

Appendix

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8.3 Health segment

The strong performance of the Health segment in 2024 was influenced by one-off events. As part of the business model revision in Slovenia and efforts to drive premium growth, enhance claims management and optimise costs, Triglav, Zdravstvena zavarovalnica was merged into the parent company. The Group's key strategic guidelines and ambitions for this segment remain unchanged, as it continues to be a key development segment.

Performance results of the Health segment of the Triglav Group

2024 2023 Index
Total business volume 56,223,031 223,036,915 25
Gross written insurance premium 44,336,316 222,799,228 20
Other income 11,886,715 237,687 5,001
Total revenue 55,139,550 223,409,569 25
Insurance operating result 8,620,876 –27,377,596
Insurance revenue 43,252,835 223,171,882 19
State compensation pursuant to the Decree on supplemental
health insurance premium		 10,996,355 0
Claims incurred 23,996,976 226,446,868 11
Acquisition and administrative costs including non-attributable costs 18,007,025 25,319,883 71
Net reinsurance service result –1,244,211 285,341
Net other insurance revenue and expenses –2,380,102 931,932
Net investment result 1,247,919 –2,945,661
Result from non-insurance operations 472,074 –1,089,949
Earnings before tax 10,340,868 –31,413,206
Combined ratio 84.1% 112.3% –28.2 p.p.
CSM of new contracts/Total CSM 11.1% 31.3% –20.3 p.p.
Insurance service expenses to insurance revenue 41.6% 11.3% 30.3 p.p.
31 Dec 2024 31 Dec 2023 Index
Contractual service margin (CSM) 212,799 92,661 230
Risk adjustment (RA) 533,650 5,593,595 10
Net insurance contract liabilities 13,449,389 37,239,036 36
Net reinsurance contract assets –295,163 132,645

The Health segment includes the health insurance products sold by the Group insurance companies and the non-insurance company complementing this business (Triglav zdravje asistenca). The segment presentation also includes the investment portion of the Health segment's own insurance portfolios.

In 2023, supplemental health insurance, which was also provided by the Triglav Group, was terminated in Slovenia. In Slovenia and other markets in the Adria region, complementary health insurance is being maintained and strengthened. The Group's non-consolidated complementary health insurance premium grew by 37% to EUR 43.1 million in 2024 (shown by insurance company in the table below).

Non-consolidated complementary health insurance premium of the Triglav Group by market

2024 2023 Index
Slovenia 22,642,006 16,899,914 134
Serbia 11,373,915 7,863,869 145
North Macedonia 3,587,856 2,546,503 141
Croatia 3,129,285 1,952,265 160
Montenegro 1,533,082 1,335,865 115
Bosnia and Herzegovina 839,534 890,171 94
Total 43,105,678 31,488,587 137

The total business volume of the Health segment decreased to EUR 56.2 million (2023: EUR 223.0 million) due to the termination of supplemental health insurance, as already mentioned. Gross written premium also recorded a sharp decline, with supplemental health insurance accounting for 85% of the health insurer's written premium. The increase in other income was impacted by state compensation pursuant to the Decree on setting the maximum price of the supplemental health insurance premium.

Earnings before tax of the Health segment totalled EUR 10.3 million (EUR 16.1 million relates to discontinued operations), while last year they were negative at EUR –31.4 million (EUR –27.8 million relates to discontinued operations). The insurance operating result amounted to EUR 8.6 million (2023: EUR –27.4 million), influenced by the release of the provisions for supplemental health insurance (EUR 6.4 million) and by the state compensation under the Decree on setting the maximum price of the supplemental health insurance premium (EUR 11.0 million). Insurance revenue and claims incurred were significantly lower than the previous year due to the termination of supplemental health insurance. The net investment result improved compared to the previous year and amounted to EUR 1.2 million (2023: EUR –2.9 million), while the result from non-insurance operations reached EUR 472 thousand. As a result of these effects, the combined ratio for the Health segment declined by 28.2 percentage points to 84.1% year-on-year. Excluding the impact of discontinued operations, the combined ratio would be 117.8% in 2024 and 108.7% the year before. The combined ratio is expected to normalise in the future.

2024 Key Highlights

8.3 Health segment

Accounting report

Appendix

2024 2023 Index
Total business volume 34,490,283 209,131,710 16
Gross written insurance premium 22,885,016 207,957,286 11
Other income 11,605,267 1,174,424 988
Total revenue 35,137,987 211,131,568 17
Insurance operating result 11,434,413 –26,902,903
Insurance revenue 23,532,720 209,957,144 11
State compensation pursuant to the Decree on supplemental
health insurance premium		 10,996,355 0
Claims incurred 6,717,258 215,862,604 3
Acquisition and administrative costs including non-attributable costs 13,492,574 21,070,944 64
Net reinsurance service result –504,728 81,814
Net other insurance revenue and expenses –2,380,102 –8,312
Net investment result 1,175,208 –2,957,549
Result from non-insurance operations 533,887 282,151 189
Earnings before tax 13,143,508 –29,578,301
Combined ratio 66.9% 112.8% –45.9 p.p.
CSM of new contracts/Total CSM 11.1% 31.3% –20.3 p.p.
Insurance service expenses to insurance revenue 57.3% 10.0% 47.3 p.p.
31 Dec 2024 31 Dec 2023 Index
Contractual service margin (CSM) 212,799 92,661 230
Risk adjustment (RA) 432,808 5,454,294 8
Net insurance contract liabilities 7,617,888 34,274,848 22
Net reinsurance contract assets 12,090 959,820 1

8.4 Asset Management

Amid highly favourable financial market trends, the Asset Management segment achieved strong performance in 2024.

The Group's total assets under management as at 31 December 2024 amounted to EUR 5.9 billion, up by 21% year-on-year. The Group manages own funds, unit-linked insurance assets and financial contract assets in the total amount of EUR 3.9 billion (index 115) in its companies. In addition, the Group manages assets in mutual funds and discretionary mandate assets, as well as assets in pension funds and alternative investments, in the total amount of EUR 2.0 billion (index 137).

Asset management of the Triglav Group as at 31 December 2024 and 31 December 20232

Assets under management Index
31 Dec 2024 31 Dec 2023 2024/2023
Own insurance portfolio (1) 2,487,714,381 2,207,612,126 113
Unit-linked life insurance assets (2) 678,910,235 540,890,478 126
Financial instruments from financial contracts (3) 739,510,939 650,042,171 114
Total (1+2+3) 3,906,135,555 3,398,544,775 115
Assets under management – Triglav Skladi (4)* 1,628,351,605 1,194,176,397 136
Assets under management – Triglav penzisko društvo, Skopje (5) 208,952,512 143,067,579 146
Assets under management – Triglav Fondovi, Sarajevo (6) 9,801,044 6,073,641 161
Total (4+5+6) 1,847,105,161 1,343,317,617 138
Assets under management – Trigal (7)** 117,412,162 91,237,169 129
Assets under management – Evropski dobrovoljni penzijski fond, Banja Luka (8) 23,129,461 18,297,531 126
Total (7+8) 140,541,623 109,534,700 128
Total 5,893,782,338 4,851,397,092 121

* Zavarovalnica Triglav's unit-linked life insurance contract assets managed by Triglav Skladi are excluded from Triglav Skladi's assets under management. ** Own funds are eliminated from Trigal's assets under management.

2024 Key Highlights

8. Operations of the Triglav Group and Zavarovalnica Triglav 8.1 Non-Life segment

8.4 Asset Management

Accounting report

Appendix

2024 2023 Index
Total business volume 112,462,118 107,798,240 104
Total revenue 51,454,450 47,991,031 107
Operating result 13,177,336 6,785,169 194
Income from asset management 49,364,063 39,685,487 124
Net other income and expenses 230,427 –1,631,210
Operating expenses 36,417,154 31,269,108 116
Net investment result 4,355,021 12,196,256 36
Earnings before tax 17,532,357 18,981,425 92
Expenses to asset management income ratio 73.8% 78.8% –5.0 pp

The asset management activity at the Triglav Group comprises the management of the parent company's own insurance portfolios (assets backing liabilities and guarantee funds), clients' pension savings through the insurance services of the Group's insurance and pension companies, the management of clients' assets in mutual funds and discretionary mandate assets by asset management companies and alternative investment management. The assets shown below therefore refer to the Group's total assets under management. As the investment results of own insurance portfolios are taken into account in the insurance segments, the asset management segment includes clients' pension saving through the insurance services of the Group's insurance and pension companies, asset management and the management of clients' assets in mutual funds and discretionary mandate assets in the aforementioned companies.

The Group's total business volume of the Asset Management segment grew by 4% to EUR 112.5 million. The supplemental pension insurance premium (EUR 61.0 million) increased by 2%, mainly due to a higher average monthly paid-in premium at the pension company. Income from asset management (EUR 49.4 million) rose by 24%, whereas other income (EUR 2.1 million) was lower due to the lower impact of the change in provisions for not achieving the guaranteed yield.

Income from asset management comprises income from fees, which increased in all companies, with the highest relative growth recorded in the Macedonian company Triglav penzisko društvo (index 140) and Triglav Skladi (27%).

The operating result amounted to EUR 13.2 million (index 194) due to higher income from asset management and higher net other income. The net investment result amounted to EUR 4.4 million, compared to EUR 12.2 million in the previous year. The positive impact of the change in provisions for not achieving the guaranteed yield was EUR 0.9 million in 2024, compared to EUR 8.1 million in the previous year. Earnings before tax of the Asset Management segment reached EUR 17.5 million, down by 8% year-on-year. Excluding the impact of the change in provisions for not achieving the guaranteed yield, earnings before tax growth would have exceeded 50%.

Asset management of the Triglav Group

Zavarovalnica
Triglav		 ƒ
Own insurance portfolio
ƒ
Financial instruments
from financial contracts
Triglav Skladi ƒ
Asset management in mutual funds
ƒ
Discretionary mandate services
ƒ
The Group's unit-linked
life insurance assets		 ƒ
The Group's assets of
guarantee funds backing
supplemental voluntary
pension insurance
Triglav
Fondovi,
Sarajevo		 ƒ
Asset management in mutual funds		 The Triglav Group's total assets
under management grew by 21%
in 2024. In asset management,
the Group's strengths are built
Triglav
penzisko
društvo,
Skopje		 ƒ
Mandatory pension fund
ƒ
Voluntary pension fund		 on an investment process
that integrates ESG principles,
a comprehensive product portfolio,
and a focus on outstanding
quality and personalisation.
Trigal ƒ
Mandatory pension fund
ƒ
Voluntary pension fund		 In the 2025–2030 strategy period,
strong organic growth is planned in
the Adria region, particularly with
expansion into new markets through
investment insurance, mutual funds
and pension funds.

Performance results of the Asset Management segment of Zavarovalnica Triglav

2024 2023 Index
Total business volume 24,136,050 28,936,738 83
Total revenue 3,330,423 7,383,565 45
Operating result 128,709 223,720 58
Income from asset management 3,158,050 2,854,726 111
Net other income and expenses –147,417 194,800
Operating expenses 2,881,923 2,825,806 102
Net investment result 0 4,334,041 0
Earnings before tax 128,710 4,557,761 3
Expenses to asset management income ratio 91.3% 99.0% –7.7 p.p.

The Company's income from asset management relating to the management of supplemental pension insurance premium (financial contract assets and liabilities) increased by 11% to EUR 3.2 million, while the decrease in total revenue and total business volume was largely due to the change in provisions for not achieving the guaranteed yield, which amounted to EUR 4.3 million in 2023. This also led to lower earnings before tax of EUR 129 thousand in the Asset Management segment, compared to EUR 4.6 million the previous year.

76

Business report

2024 Key Highlights

8.4 Asset Management 8.5 Non-Life segment

Accounting report

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Appendix

Management of assets and investment funds

Triglav Skladi is the Group's core asset management company, with assets under management of EUR 2.3 billion as at 31 December 2024, up by 33% relative to 31 December 2023 (EUR 1.7 billion). In 2024, the company revised its product range and now offers 12 distinct investment policies within mutual funds, including a money market fund, a bond fund, a flexible fund, a mixed fund and equity funds. As at 31 December 2024, the company managed the portfolio of 110,000 investors worth EUR 1.9 billion in mutual funds. The value of net assets under management rose by 29% due to net inflows of EUR 138.2 million, effective management and favourable trends in the capital markets (EUR 294.8 million). Discretionary mandate assets amounted to EUR 336.1 million as at 31 December 2024, a 61% increase year-on-year. Net inflows amounted to EUR 59.8 million, while the favourable effects of capital markets increased net asset value by EUR 68.0 million.

Triglav Skladi also manages the unit-linked life insurance assets of the Triglav Group. Among them are the Financial Objectives investment strategy, which enables clients to actively adjust their portfolios according to the lifecycle principle, and Active Investment packages, tailored to different client segments adjusted to their risk profile. In addition, Triglav Skladi manages five portfolios of guarantee funds backing supplemental voluntary pension insurance: Triglav Drzni, Triglav Zmerni, Delniški Skupni pokojninski sklad, Mešani Skupni pokojninski sklad and Obvezniški Skupni pokojninski sklad. The integration of environmental, social and governance (ESG) aspects into asset management is reported in more detail in Section 10. Sustainability Report.

Triglav Fondovi, Sarajevo manages two open-end investment funds (OIF Triglav Obveznički and OIF Triglav Globalni dionički). Both funds recorded net inflows of EUR 3.0 million in 2024.

Movement in net assets under management

Net asset value of
assets under management		 Net inflow Net market
31 Dec 2024 31 Dec 2023 Change impact impact
Triglav Skladi 2,260,084,264 1,699,308,044 560,776,220 197,915,973 362,860,247
- mutual funds 1,923,993,403 1,490,992,587 433,000,816 138,162,449 294,838,367
- discretionary mandate assets 336,090,861 208,315,457 127,775,404 59,753,524 68,021,880
Triglav Fondovi, Sarajevo 9,801,044 6,073,641 3,727,403 2,952,939 774,464
Total 2,269,885,308 1,705,381,685 564,503,623 200,868,912 363,634,711

Active ownership3

An active ownership role in the investment process is essential for promoting improved business policies and practices among issuers of financial instruments, contributing to their long-term success. Triglav Skladi exercises this role in line with its Sustainable Investment Policy by engaging with issuers on business, financial, environmental, social and governance matters and exercising the rights associated with financial instruments. This includes active participation in issuers' meetings, voting and proposing agenda items to support responsible and sustainable investment management.

8.5 Investment in own-use real property and equipment

The Group invested EUR 10.1 million (index 135) in property, plant and equipment and EUR 12.7 million (index 92) in intangible assets (software and property rights). The Company invested EUR 4.4 million (index 88) in property, plant and equipment and EUR 8.7 million (index 86) in intangible fixed assets. See Section 3.7.1 of the Accounting Report for more information on property, plant and equipment and Section 3.7.4 of the Accounting Report for more information on intangible assets.

The value of own-use real property is enhanced through active management and prudent investment. This involves optimising utilisation, increasing functionality and improving energy efficiency through energy renovation. Based on minimum standards for flexible arrangement of workplace and points of sale, the Group aligns with international best practices to modernise and enhance operational efficiency. As part of implementing the space use optimisation project under the adopted 2021–2025 plan, the following objectives are pursued:

  • To provide employees with a modern business environment and the right conditions for new ways of working (hybrid workplaces), and to provide clients with an outstanding and comfortable user experience (e.g. remote transacting); and
  • To achieve lasting effects by rationalising operating expenses and maintenance costs while maintaining the quality of the space.

In the coming years, office space will be optimised for internal activities, while further digitalisation and automation of processes will enhance efficiency and improve the user experience in online underwriting and remote claims reporting. Alongside the planned optimisation of space usage in larger business units, the number of branch offices is being adjusted as physical points of contact for clients. The optimisation measures are expected to free up at least 3,000m2 of space by the end of 2026, reducing operating expenses and maintenance costs, thus contributing significantly to reducing the Group's carbon footprint.

A hybrid workspace pilot project was implemented to create a more modern and flexible workplace. By the end of 2024, around 300 employees of the parent company had participated, with the project set to continue in the coming years.

Real property management software was upgraded with investment management and cost management functionalities, along with enhancements to energy accounting.

The largest portion of software investment was allocated to the development and upgrade of core underwriting applications, acquisition of licenses for various business and support applications, the development of mobile applications and digital channels, and the expansion of the data warehouse.

Investment in personal computing equipment enhances productivity and the user experience while minimising technical issues and maintenance requirements. Upgrades to server infrastructure increase capacity for hosting core and support applications, improving availability and reducing the risk of downtime that could disrupt business operations. Investment in communications equipment also strengthens network security, providing greater protection against cyber threats.

Accounting report

Appendix

9. Risk management

  • The Triglav Group performed well, maintaining good capital strength and liquidity, as confirmed by the re-affirmed »A« credit ratings. S&P Global upgraded its medium-term outlook from stable to positive.
  • Capital adequacy benefited from the successful issue of a new subordinated bond.
  • Adaptation to the macroeconomic environment continued, with a prudent assumption of underwriting risks and maintenance of an optimal level of market risks.
  • Planned asset-liability matching was ensured while risks were mitigated through appropriate diversification.
  • Development activities focused on upgrading sustainability risk management and strengthening the information security risk management system.
  • The establishment of the Risk Committee of Zavarovalnica Triglav's Supervisory Board further reinforced the importance and role of the risk management system at Group level.

The Triglav Group was well-capitalised in 2024. The increase in own funds to cover the solvency capital requirement was significantly influenced by the issuance of a new subordinated bond (see Section 6.7 Bonds for more information). The outlined dividend policy was followed, achieving a high capital adequacy ratio of 219% at the year-end, despite changes in the macroeconomic environment and financial markets. The Group's adequate capital strength was reaffirmed by AM Best, which assigned a long-term credit rating of "A", and S&P Global, which assigned a financial strength rating of "A". The latter upgraded the Group's medium-term outlook on its "A" rating from stable to positive in December 2024. See Section 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav for more information.

Although inflation gradually eased throughout the year and central banks cut key interest rates, economic growth remained low. These conditions mainly affected market and underwriting risks. In assuming and managing these risks, the focus remained on adapting to the macroeconomic and financial market situation.

The Group carried out key risk management development activities at the business line level, where opportunities for improvement were identified or responses to external circumstances were required.

  • In capital management, upgrades were made through a bridging analysis, providing a comprehensive explanation of the differences between the valuation of insurance technical provisions for solvency and financial statement purposes.
  • In the context of market risks, several upgrades were made to measurement and monitoring methodologies.
  • Non-Life underwriting risk monitoring and analysis were upgraded, and additional monitoring of certain types of exposures at Group level was also implemented.
  • In the context of credit risk management, the approach to managing risks arising from inward and outward reinsurance contracts was upgraded. The process of obtaining reinsurance partner ratings was also upgraded, further improving the quality of the data.
  • With regard to liquidity risk, the existing methodology for calculating risk indicators was refined.
  • In operational risk management, methodologies and exposure assessments for key business processes were updated, particularly with respect to outsourcing and information security risks.

In non-financial risk management, the management of reputational risk was upgraded. Sustainability risk management was also revised, particularly with regard to transition risk due to climate change, with updates to measurement methods. For the first time, an analysis was conducted on the exposure of the insurance and investment portfolios to biodiversity risks.

For all remaining risks, efforts focused on maintaining established systems and processes. The risk management system at Group level was systematically upgraded by consistently monitoring all material risks.

9.1 Risk management system

The risk management system is key to achieving the Group's strategic and business objectives. It is implemented at Group level as a set of harmonised rules, powers and responsibilities, clearly delineated by business function and organisational level. The system defines and integrates processes for the continuous identification, assessment, monitoring and management of assumed, potential and emerging risks. A clear, transparent and well-documented system enables the Company to take appropriate and timely action and to maintain the risk profile at the level defined in the main document – Group Risk Appetite Statement. The system is maintained up-to-date and comprehensive through continuous upgrades and updates. In subsidiaries, the system is aligned with the standards and rules of the parent company, taking into account the principle of proportionality.

9.1.1 Powers and responsibilities

The system of powers and responsibilities in risk management is based on the "three lines of defence" model.

The Management Board and Supervisory Board have a key role in the risk management system. They are responsible for its operation and defining organisational goals and strategies for achieving them. Furthermore, they establish the management structure and processes for appropriate management of assumed risks.

The first line of defence comprises the business functions, which identify and underwrite risks in their respective work area in accordance with the Management Board's guidelines. Actual risks are actively managed within the limits of acceptable or allowed exposure.

Accounting report

Appendix

The second and third lines of defence comprise the decision-making bodies and key functions of the governance system that are organised as independent organisational units.

The second line of defence includes the relevant risk management committees and key functions: the risk management function, the non-life and life insurance actuarial functions, and the compliance function. The internal audit function, providing independent supervision of the system, is part of the third line of defence. All key functions cooperate with one another, with other areas within the Company and with Group companies. They are independent in their work.

The risk management function is responsible and accountable for the development and effective operation of the risk management system, in line with the Management Board's guidance. It monitors the overall risk profile, identifies and assesses emerging risks, coordinates and calculates capital requirements, and assesses capital adequacy using the regulatory method and other capital models. It also conducts the own risk and solvency assessment process and prepares other regulatory reports, such as the Solvency and Financial Condition Report and the Regular Supervisory Report.

The compliance function monitors the compliance of the Company's operations with the applicable regulations and commitments within the internal control system. It monitors and assesses the impacts of the changed legal environment and compliance risks. As part of its duties, it reviews and advises on the adequacy and effectiveness of procedures and measures to ensure compliance. It also co-creates the internal controls for ensuring compliance of a particular process, business line, or the Company as a whole by providing guidelines and making recommendations and proposals, on which it regularly reports to the Management Board and the Supervisory Board. In addition, the compliance function plays a major role in ensuring fair and transparent operations.

The actuarial function coordinates and

implements the calculation of insurance technical provisions, applying appropriate methods, models and assumptions, while ensuring the use of comprehensive, high-quality data. It also calculates and coordinates capital requirements for underwriting risks. A key task of the function is to verify the adequacy of the overall underwriting and reinsurance policies and to provide an opinion on whether the amount of the premium of individual products is sufficient to cover all the liabilities arising from insurance contracts. The function also participates in the own risk and solvency assessment and reports its significant findings to the Management Board and the Supervisory Board. Within the Group, the actuarial function operates separately for non-life and life insurance.

The internal audit function provides regular and comprehensive oversight of the Company's operations. It ensures a systematic and planned review of operations, assessing their adequacy

and effectiveness. Its tasks include overseeing risk management and control procedures. The function also makes recommendations for improvements and ensures the quality and continuous development of internal audit. It cooperates with external auditors and other supervisory bodies, as well as monitors the implementation of their recommendations. It also participates in internal audits in other Group companies.

All key functions are in charge of not only transferring know-how and best practices to Group subsidiaries but also of ensuring their harmonised operation.

The second line of defence of the risk management system includes committees that support the Management Board by monitoring risks on a regular basis, reporting to the Management Board on actions taken to address them, and informing the Management Board of their work.

Risk management is initially carried out at the level of individual companies and then comprehensively at Group level. The management of individual Group members and the persons in charge of risk management are responsible for the establishment and operation of the risk management system.

The operation of the risk management system is transferred from the parent company to the Group with minimum standards harmonised by the Triglav Group Subsidiary Management Division, in cooperation with the parent company's Risk Management Department, which is responsible for risk management minimum standards. Through the common standards, the Group ensures an effective and transparent risk management system at Group level, which is based on effective communication, quality exchange of data and information, time availability, methodological consistency, accounting verifiability and integrity.

The decision-making bodies participating in the integrated corporate risk management process and the three lines of defence

Business report The risk management system's committees and their responsibilities

2024 Key Highlights

Appendix

Risk Management Committee (RMC)
Responsible for:
▪
capital risks and
▪
▪		 non-financial risks that do not fall within the powers of other committees
overall all other types of risks, with an emphasis on the Group's most material risks.		 Approves:
▪
limit systems related to all risk types
▪
▪
maximum net retention tables
▪		 methodologies and rules defining risk assessment methods
recommendations to subsidiaries regarding the maximum permitted exposure to individual risks
Assets and
Liabilities
Committee		 Non-life
Underwriting
Committee		 Operational
Risk
Committee		 Compliance
and
Sustainable		 Life Insurance
Product Forum
(LIPF)		 Non-life
Insurance
Product Forum		 Health
Insurance
Product Forum		 Project
Steering
Committee
Committee
(CSDC)
Responsible for:
liquidity risk,
market risks,
life insurance
underwriting and
pension risks,
credit risks of
the investment
portfolio		 Responsible for:
non-life
underwriting and
credit risks		 Responsible for:
operational risks		 Responsible for:
compliance risks,
reputational risks
and sustainability
risks		 Responsible for:
life underwriting
risks		 Responsible for:
non-life
underwriting risks		 Responsible for:
health underwriting
risk		 Responsible for:
project risks

2024 Key Highlights

9.2 Capital position 10. Sustainability report

  1. Digital Operational Resilience Report

Accounting report

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Appendix

9.1.2 Risk management process

The key building blocks of the comprehensive risk management process are the Group's strategy and the Company's business plan. These elements are used to define the Group-level risk appetite for all material categories of risk that the Group is willing to assume. Additionally, this document outlines the key indicators for measuring and monitoring these risks, including their target and maximum values. Zero tolerance is established for all risks the Group is unwilling to assume. One of the key indicators for measuring business performance and the achievement of strategic objectives is the capital adequacy ratio.

The risk management process consists of risk identification, assessment or measurement, management, monitoring and reporting.

Risk identification is an ongoing process involving business functions at all levels. It is normally carried out once a year as part of drawing up the business and financial plan, and more frequently if necessary.

The standard Solvency II formula (the regulatory method) is primarily used for risk assessment. The formula is based on standard volatility and own risk exposure. The result of the individual risk assessments shows how much own funds would decrease in a stress scenario. The greater the impact of the risk of own funds, the more material the risk. The overall risk assessment (the solvency capital requirement) takes into account the diversification specified in the standard formula as prescribed by law. The risk assessment is complemented with the Company's own assessment of the volatility of risk factors, generally taking into account the Value at Risk method, with the same confidence level of 99.5% over a one-year horizon. Risks are additionally assessed according to the methodology of S&P credit rating agency.

In the risk management process, the target values or limits for assumed and potential risks are defined and must be complied with when assuming these risks. The Company employs well-established multi-level risk monitoring systems to efficiently identify potential risk increases. These trends are identified through processes at the business line level and regularly communicated to the relevant

persons by key functions. At Group level, exposure concentration and heightened volatility for risks associated with the Group's major vulnerabilities are closely monitored. Material detected or identified risks are treated also in the own risk and solvency assessment process.

The Risk Management Department regularly monitors the matching of the current risk profile and the defined risk appetite. The findings are reviewed by the Risk Management Committee, which approves appropriate measures to address any detected deviations. The Committee's findings and actions are regularly reported to the Management Board, the Supervisory Board and its Risk Committee.

Risk management also encompasses the own risk and solvency assessment process, which includes assessing solvency requirements. The appropriateness of the regulatory method is also evaluated by incorporating findings from the internal risk assessment method. A comprehensive analysis is conducted at least annually to determine the regulatory method's suitability.

As part of the own risk and solvency assessment process, the appropriateness of the strategic guidelines is assessed in terms of ensuring capital adequacy. Measures are planned to maintain the Group's capital adequacy ratio within the target range of 200–250%. The appropriate value of the ratio is ensured through the capital management process. The movement of the ratio is monitored through a set of detailed risk indicators and exposure limits across all segments of the Group's operations. Maintaining capital adequacy within the target range is an ongoing process, which requires regular review of business decisions in terms of profitability and the risks assumed. Capital adequacy is also influenced by the dividend policy, which is defined in the Capital Management Policy of the Company and the Group and is subject to capital adequacy targets.

In the context of the own risk and solvency assessment process, the sustainability of capital adequacy is evaluated using stress scenarios that account for existing, potential and emerging risks, with each type of risk being assessed individually. These scenarios enable the Company to take appropriate action, such as adjusting the guidelines for transaction acceptance, premium rates, the limit system, risk transfer and other activities. This approach strengthens the Group's resilience to identified risks and supports the improvement of internal control systems, while also updating an effective strategic decisionmaking process.

Risk Management Process

2024 Key Highlights

Accounting report

Appendix

9.1.3 Risk classification

Internal risk monitoring is conducted in accordance with the standard formula prescribed by the Insurance Act (ZZavar-1). The methods used to manage each type of risk, along with the exposures and the assessment of these risks, are presented in Section 2.8 of the Accounting Report.

The most important types of risks assumed in the course of operations are as follows:

  • Underwriting risks are the risks of loss or of adverse change in the value of insurance liabilities due to inadequate pricing and provisioning assumptions taken into account in the calculation of insurance technical provisions. Underwriting risks are divided into non-life underwriting risks (including health insurance) and life underwriting risks (including pension insurance). In direct insurance business, the Company is predominantly faced with traditional underwriting risks.
    • Non-life underwriting risks comprise premium risk, provision risk, lapse risk and catastrophe risk.
  • Life underwriting risks comprise mortality risk, longevity risk, morbidity risk, lapse risk, expense risk, catastrophe risk and revision risk.
  • Market risks are the risks of loss from adverse changes in the financial position, which may result from fluctuations in the level and the volatility of market prices of assets, liabilities and financial instruments. They comprise interest rate risk, equity risk, property risk, spread risk, currency risk and market concentration risk.
  • Credit risks are the risks of loss or adverse change in the financial position of the company due to fluctuations in the credit position of counterparties and are a result of the debtor's inability to fulfil contractual obligations.
  • Liquidity risk is the risk of loss if the company is unable to settle all due obligations or is forced to provide the necessary funds at significantly higher costs than usual. The risk of settling matured and contingent liabilities and market liquidity risk are monitored in the context of the liquidity risk.
  • Capital risk is the risk of loss due to inadequate capital amount and/or structure with regard to the size and nature of the business. The risk may also arise from difficulties encountered when the company seeks to acquire additional capital, particularly in situations requiring a rapid capital increase and/or under adverse conditions. Capital risks also include legislative changes and changes in accounting standards having an impact on the Group's capital adequacy and, consequently, on the dividend payment.
  • Operational risks are the risks of loss arising from inadequate or failed internal processes, personnel or systems, or from external events and their impact. They also include information security risks with an emphasis on cyber risks and major business interruption events.
  • Non-financial risks include material strategic risks, reputational risk, Group risk and sustainability risks. They predominantly originate from the external environment and are closely linked to other risks, especially operational risks. Generally, they include from several realised factors both inside and outside of the Group. Sustainability risks are also identified and assessed through the double materiality assessment (DMA) process, in accordance with ESRS standards. See Section 10.1.5 Double materiality assessment for more information.

The Group is also exposed to potential or emerging risks. These are risks that may develop in the future or that already exist but are not yet considered material. They are difficult to assess but may have a significant impact on the business. They cannot be predicted based on past experience as there is often not enough data from which to predict either the frequency or the severity of the damage caused.

Potential or emerging risks are therefore monitored closely and, in view of the findings, the risk management system is upgraded accordingly.

Classification of the Group's risks according to IFRS

The International Financial Reporting Standards comprise underwriting, market, credit, liquidity and other risks. The Group's risk classification can be translated into the IFRS risk classification as follows:

  • In accordance with said standards, the most common market risks are currency, interest rate and other price risks, including equity and property risks.
  • Under IFRS, credit risks include counterparty default risk, a significant part of which comprises exposures from reinsurance, cash, cash equivalents and receivables, as well as spread risk and market concentration risk. The classification used by the Group considers the latter two as part of market risks.
  • There are no differences between the classifications of underwriting risks and liquidity risk.
  • Other risks as defined by the IFRS include operational, capital and non-financial risks.

The situation is regularly and systematically monitored. Risk exposure and risk assessment based on regulatory requirements and internal risk classification are reported to the relevant bodies and the regulator. Due to the differences in the IFRS and Solvency II valuation, the values of individual balance sheet items may differ noticeably, which is also reflected in differences in the identified exposure to individual risks. In addition, different valuation methods affect the sensitivity of the items and therefore the risk assessment. A more detailed presentation of the differences between the two valuations is included in the Solvency and Financial Condition Report, which is published on the website (www.triglav.eu).

Risk exposures according to the classification used in the risk management system are presented further on in the text.

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2024 Key Highlights

Accounting report

Appendix

9.2 Capital position

The ongoing capital management process ensures that capital is maintained at its optimum level and structure. Its use is optimised while also managing capital and other risks.

9.2.1 Capital management4

250% Surplus

200–250% Target

150–200% Sub-optimum level of

130–150% Warning level of

< 130% Insufficient

A well-integrated risk management system is essential to effective management of capital and capital risk. Ensuring capital adequacy within the target range allows the Group to maintain capital that is always aligned with its risk profile and business strategy. To achieve its strategic business development objectives and optimise its capital structure and return on equity, the Company also issued a new subordinated bond in July 2024. This issue was part of the Group's regular capital management and is considered in the calculation of capital adequacy. See Section 6.7 Bonds for more information.

The purpose of capital management is to achieve safe and profitable operations, as well as a long-term and stable return on investment, by paying out dividends based on the criteria in the dividend policy. When entering into transactions, profitability is consistently assessed in relation to the risks assumed. This ensures the Group's target capital adequacy while providing an appropriate return to shareholders.

Possibility of a more aggressive growth of business volume, assessment of potential changes in the business strategy

Analyzing possible medium and long-term measures to improve capital adequacy and

Regular performance of risk management activities

emphasized monitoring of risks

Implementation of measures to improve capital adequacy

The capital management strategic objectives and the dividend policy criteria

capital adequacy

capital adequacy

capital adequacy

capital adequacy

capital adequacy

The Group's target capital adequacy is set within the range of 200–250%. This means that the Group has an adequate amount of capital to carry out its core business and cover potential losses. Capital surplus provides protection against losses due to unforeseen adverse events and volatile capital requirements. While maintaining regular capital adequacy, the existing level of capital and its future adequacy are planned and assessed.

Capital adequacy also has a significant impact on the Group's credit rating. Therefore, when making business decisions, the criteria of the models of major credit rating agencies are taken into account. The Group's capital model is assessed by the credit rating agencies S&P Global and AM Best. See Section 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav for more information on the credit rating.

9.2.2 Capital adequacy and the risk profile in 2024

Effective capital management enhances the Group's operations, enabling it to make the right decisions and maintain its competitive edge.

Explanation of differences in capital valuation in the balance sheet for solvency and financial reporting purposes for the Triglav Group as at 31 December 2024 (EUR million)

* Consolidation method for solvency purposes differs for Triglav Skladi, Triglav, pokojninska družba, Sarajevostan, Triglav penzisko društvo, Skopje and Triglav Fondovi.

** The fair value of intangible assets is valued at 0.

*** In this item interests in companies with sectoral rules and forseeable dividends are included.

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Accounting report

Appendix

The definition of equity in the balance sheet for the preparation of financial statements differs from its definition for solvency purposes. Differences and important reasons for changes in items of both types of capital in 2024 are described in the Group's Solvency and Financial Condition Report for 2024, D and E sections, available at www.triglav.eu.

Capital adequacy is calculated according to the Solvency II standard formula as the ratio between eligible own funds and the solvency capital requirement. Adjustments and simplifications are not taken into account in the calculation.

The Triglav Group was well-capitalised as at 31 December 2024. Its capital adequacy ratio stood at 219%, within the target range, aligning with the capital management strategic objectives and the dividend policy criteria presented in Section 9.2.1 Capital management. The Group's adequate capital position and resilience to potential adverse business conditions were also confirmed by the results of the 2024 stress tests conducted for the insurance sector by the European Insurance and Occupational Pensions Authority (EIOPA), in which the Group participated.

Capital adequacy of the Triglav Group and Zavarovalnica Triglav

Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Available own funds (EUR million) 1,105.5 943.2 1,044.8 964.0
SCR (EUR million) 504.9 471.5 416.4 389.8
Capital adequacy (%) 219 200 271 247

Adequate capital and liquidity position confirmed

In 2024, the Triglav Group was the only Slovenian insurance and reinsurance company to participate in the stress tests conducted by the European Insurance and Occupational Pensions Authority (EIOPA) for the European insurance sector. The results confirmed that both the European insurance sector and the Triglav Group maintain an adequate capital and liquidity position, ensuring resilience to potential geopolitical, economic and financial shocks.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

to 2023. The bulk of the increase comes from the issuance of a subordinated bond in 2024, while the remainder stems from a higher reconciliation reserve. The available own funds for 2024 reflect the expected dividend for the financial year of EUR 65.7 million, whereas those for 2023 included an expected dividend of EUR 8.1 million. The Group's solvency capital requirement increased by EUR 33.4 million, primarily due to higher capital requirements for underwriting risks resulting from business volume growth.

The Group's capital adequacy was affected by the increase in own funds by EUR 162.3 million compared

At least once a year a sensitivity analysis of the Group's capital adequacy ratio is performed to test the effects of major changes in selected variables. Based on this analysis, the stability of the Group's capital position and its resilience to material risk factors is assessed.

The analysis as at 31 December 2024 shows sensitivity to individual shocks on financial markets.

The sensitivity analysis of the Group's capital adequacy ratio

Among the risks included in the standard formula, the Group is most exposed to underwriting and market risks, followed by operational and credit risks. Within the Group, the parent company assumes the bulk of the risks. See Section 2.8 of the Accounting Report for more information about the types of risks assumed by the Group.

The risk profile of the Company and the Group shows the types of risks to which they are most exposed.

84

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Appendix

Risk Risk assessment
(current)		 Risk trend
(future)		 Note
Capital
adequacy and
capital risk		 The capital adequacy of the Company and the Group remains within the target range, as confirmed by the EIOPA stress test. The Group's adequate
capital and financial strength were reaffirmed by S&P Global and AM Best, which assigned a long-term credit rating of "A" and a financial strength
rating of "A". S&P Global also upgraded its medium-term outlook from stable to positive.
Underwriting
risks		 The assessment of underwriting risks had not changed significantly over the past year. The growth in insurance premium resulted in a slight
increase in exposures to provision, premium and catastrophe risks, leading to a corresponding rise in capital requirements.
Market
risks		 The Group continues to maintain risks at defined levels. Particular attention is given to identifying optimal investment policies, with special focus on
asset-liability matching.
Credit
risks		 Credit risks remain low due to regular, systematic and comprehensive exposure management. The suitability and quality of reinsurance partners
are regularly reviewed to ensure they are well-diversified. Stress testing conducted as part of the ORSA process confirmed the effectiveness of
these measures.
Liquidity
risk		 The Company's strong liquidity position and the adequate operational liquidity of the Group's subsidiaries are ensured through regular liquidity
monitoring. Liquidity was verified as part of the ORSA process through internal stress tests as well as the stress test defined by EIOPA. It was
confirmed by all of them that the parent company and its subsidiaries would have adequate liquidity even in the event of extreme events.
Operational
risks		 Operational risks are managed proactively. Priority is given to the regular maintenance and upgrading of outsourcing management and the
information security management system, with a particular focus on cyber risks. Internal interprocess risks are also managed. Operational risks are
primarily increased by large-scale regulatory changes and the general staffing risk when recruiting workers in shortage occupations.

* An overall assessment of the main risk categories was made on the basis of quarterly risk reports. The risk trend shows a potential assessment of future risks relative to the latest projections.

i) The colour scale of assessed risks: High Medium Low

Risk dashboard of Zavarovalnica Triglav and the Triglav Group* as at 31 December 2024

ii) Risk trend: downward, stable, upward.

Accounting report

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Appendix

The presentation of the Triglav Group's risk profile and assessments by individual risk category are based on market values for solvency purposes. The Company uses a regulatory method, which is assessed as appropriate for risk measurement in the context of the own risk and solvency assessment process.

As at 31 December 2024, the Group was financially stable and adequately liquid with a strong capital base.

* The risk profile is determined based on risk assessment using the standard formula, without taking into account the effects of diversification across individual risk categories.

9.2.3 Identified future risks

The main risk in recent years has stemmed from inflationary trends and the resulting high interest rates. As inflationary pressures ease, central banks have begun to cut key interest rates, which is expected to stimulate economic growth in the future. However, the future trajectory of interest rates and economic activity remains uncertain. This also implies future risks, particularly the possibility of a continued period of high central bank interest rates and low economic growth. Risks related to geopolitical uncertainty and its impact on the economic and political environment in which the Group operates remain a key concern.

With regard to market risks, particularly an increase in spread risk could arise due to the aggravated economic situation or deteriorating credit ratings of issuers of securities. As economic activity deteriorates, negative developments in stock markets and a possible decline in the value of real property may also be expected. This could then manifest in a decrease in the value of investments. The potential impact of interest rate risk associated with possible changes in risk-free interest rates is managed by actively matching assets and liabilities.

A more severe recession could negatively affect demand for insurance and reduce the volume of premiums written, which would have a detrimental effect on the Group's operations. This would also affect liquidity risk, which could increase due to the potential reduction of inflows from the insurance business and a lower market liquidity of the investment portfolio.

An increase in underwriting and credit risks could also affect business in the coming year. In the context of underwriting risks, premium risks and the appropriateness of pricing policies are consistently monitored, while provision risks are managed. To mitigate credit risks, mechanisms for assessing the credit ratings of major partners are being strengthened, along with close monitoring of their payment discipline. The adequacy of reinsurance protection is also carefully assessed and adjusted where necessary.

As part of testing the Group's sensitivity, the factors that could have a material impact on the Company's and the Group's operations in the coming years were examined.

Sensitivity analysis as at 31 December 2024* (EUR)

Total impact on capital
Triglav Group Zavarovalnica Triglav
Change in credit spreads (+ 50 bp) –34,955,884 –29,159,032
Change in interest rates (+ 100 bp) –23,732,656 –18,898,646
Change in value of equity investments (-10%) –5,921,344 –5,568,517
Change in real property prices (-5%) –8,834,211 –5,732,869
Total –73,444,095 –59,359,064

* The effects shown include the tax aspect.

A sensitivity analysis shows potential impacts on the Group's capital in the case of an adverse event with a sudden decrease in interest rates (by 100 basis points), an increase in credit spreads (by 50 basis points), a drop in equity exposure (by 10 percentage points) and in real property exposure (by 5 percentage points). Should this event be realised, the Group's capital would decrease by EUR 73.4 million.

The sensitivity analysis of the Group's credit portfolio again confirmed that the credit ratings of banks and reinsurers, as well as the share of insurance and subrogation claims, have a significant impact on operations. The sensitivity analyses for the renewal rate and the suitability and sensitivity analysis to test the appropriateness of the "probability of default" assumption indicated a high sensitivity of the Group's portfolio to these factors.

As part of the liquidity stress scenario, sensitivity testing revealed that the Group is vulnerable to mass policy lapse. Equally important are any declines in the value of liquid investments that may materialise as a result of reduced liquidity or other financial market fluctuations.

Business report 2024 Key Highlights

  1. Address by the President of the Management Board 2. Triglav Group and Zavarovalnica Triglav in 2024

  2. The share and shareholders of Zavarovalnica Triglav 7. Macroeconomic environment and market trends

  3. Report of the Supervisory Board 4. Triglav Group strategy and plans 5. Corporate Governance Statement

  4. Operations of the Triglav Group and

Zavarovalnica Triglav 9. Risk management 10. Sustainability report 10.1 General disclosures 10.2 Environmental aspects 10.3 Social aspects 10.4 Governance aspects 10.5 Limited Assurance Report on Sustainability Information 11. Digital Operational Resilience Report

Accounting report

Appendix

10. Sustainability report

10.1 General disclosures (ESRS 2) 87
10.1.1 Basis for preparation 87
10.1.2 Sustainable development management system
10.1.2.1 Strategic ambitions in sustainable development
10.1.2.2 Sustainable development policy		 89
92
94
10.1.3 Triglav Group's business model and value chain 98
10.1.4 Key stakeholders 99
10.1.5 Double materiality assessment
10.1.5.1 The double materiality assessment process
10.1.5.2 Methodology		 101
101
101
10.1.6 Identified
impacts,
risks
and
opportunities		 102
10.2 Environmental aspects 106
10.2.1 Climate change adaptation and mitigation (E1)
10.2.1.1 The Triglav Group's carbon footprint
10.2.1.2 Climate risk management
10.2.1.3 Services and products promoting social and environmental benefits		 106
107
111
112
10.2.2 Disclosures under the EU Taxonomy Regulation
10.2.2.1 Key performance indicators related to investments
10.2.2.2 Key performance indicators related to underwriting activities		 114
114
122
10.3 Social aspects 126
10.3.1 Employee care (S1)
10.3.1.1 Employee composition
10.3.1.2 Employee training and development
10.3.1.3 Occupational health and safety
10.3.1.4 Equal treatment and opportunities for all		 126
127
129
130
131
10.3.2 Clients (S4)
10.3.2.1 Transparent and easy-to-understand products
10.3.2.2 Accessibility of services and financial literacy
10.3.2.3 Data privacy and security		 133
134
135
136
10.3.3 Community engagement (S3)
10.3.3.1 Investment in prevention (S3)
10.3.3.2 Sponsorships and donations		 136
138
140
10.4 Governance aspects 142
10.4.1 Business ethics (G1) 142
10.4.2 Supplier relationship management 144
10.5 Limited Assurance Report on Sustainability Information 145

Appendix

The list of ESRS disclosure requirements included in
the sustainability statement		 336
The list of datapoints in cross-cutting and topical standards
that derive from other EU legislation		 338
GRI, SASB in SDG Content Index 342

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

2024 Key Highlights

10.1 General disclosures

Accounting report

Appendix

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10.1 General disclosures (ESRS 2)

10.1.1 Basis for preparation

The Sustainability Report is an integral part of the Annual Report. It is prepared in accordance with the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) and discloses the information required by the EU Taxonomy Regulation (Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852).

The consolidation level of sustainability disclosures5

The financial reporting for the Group comprises all companies included in the consolidated financial statements (See Section 2.3 of the Accounting Report for more information).

However, the consolidation level of data in the 2024 Sustainability Report differs for some disclosures from the scope of companies included in the consolidated financial statements. Companies with no more than one employee and no office space of their own are excluded in the carbon footprint calculation. These companies are Triglav INT d.o.o., Triglav Savetovanje d.o.o., Beograd, u likvidaciji, Triglav Savjetovanje d.o.o., Sarajevo, Triglav Savjetovanje d.o.o., Zagreb, u likvidaciji, Triglav upravljanje nekretninama d.o.o., Podgorica, in Triglav upravuvanje so nedvižen imot DOOEL, Skopje.

The Triglav Group currently includes only Zavarovalnica Triglav in reporting on financed emissions and has not yet extended the scope of consolidation to other Group companies. The process of including additional companies in the calculation of financed emissions is under evaluation, taking into account methodological requirements and the availability of relevant data. When reporting the key performance indicator related to underwriting activities based on the requirements of the EU Taxonomy Regulation, only Zavarovalnica Triglav's gross written premium is included in the calculation of the Triglav Group's taxonomy-alignment ratio in the numerator. In future reporting periods, reporting will continue to be analysed and gradually expanded in line with regulatory requirements and best practices.

Sustainability risks are managed across all (re)insurance and major financial companies within the Group. However, for other companies within the Group companies, these risks are rendered negligible due to their size and are therefore not actively managed.

Disclosures related to marketing activities do not include the following companies: Zavarovalnica Triglav Re d.d., Triglav, pokojninska družba d.d., Triglav INT d.o.o., Avtoservis d.o.o., Triglav Svetovanje d.o.o., Upravljanje nepremičnin d.o.o., Triglav Savetovanje d.o.o., Beograd, u likvidaciji, Triglav Osiguranje a.d., Banja Luka, Triglav Fondovi d.o.o., Sarajevo, Triglav Savjetovanje d.o.o., Sarajevo, Autocentar BH d.o.o., Sarajevostan d.d., Triglav Savjetovanje d.o.o., Zagreb, u likvidaciji, Triglav upravljanje nekretninama d.o.o., Podgorica, Lovćen životna osiguranja a.d., Podgorica, Lovćen Auto d.o.o., Podgorica, Triglav Osiguravanje život a.d., Skopje, Triglav penzisko društvo, a.d., Skopje, in Triglav upravuvanje so nedvižen imot DOOEL, Skopje.

The information on supplier management applies to all subsidiaries in Slovenia, except Eskulap, družba za zdravstvene storitve d.o.o.

The compliance information does not include Triglav INT d.o.o.; Triglav zdravje asistenca d.o.o.; Eskulap d.o.o.; Triglav Avtoservis d.o.o.; Triglav INT d.o.o., Belgrade; Triglav Savetovanje d.o.o., Belgrade; Triglav

Fondovi d.o.o., Sarajevo; Triglav Savetovanje d.o.o., Sarajevo; Triglav upravljanje nekretninama d.o.o., Sarajevo; Autocentar BH d.o.o.; Sarajevostan d.o.o.; Triglav Savjetovanje d.o.o., Zagreb; Triglav upravljanje nekretninama d.o.o., Zagreb; Triglav upravljanje nekretninama d.o.o., Podgorica; Lovćen Auto d.o.o.; Triglav upravuvanje so nedvižen imot DOOEL Skopje.

The disclosures required by the ESRS have been audited for 2024 but were not audited for 2023. The 2024 tables for Zavarovalnica Triglav, d.d. include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav d.d. that year; however, the 2023 disclosures do not include these data for Zavarovalnica Triglav d.d.

The double materiality assessment process described in Section 10.1.5 encompasses impacts, risks and opportunities primarily stemming from the Group's insurance and asset management activities, as identified by stakeholders during the double materiality assessment process. The Sustainability Report predominantly provides information on policies, targets, risks and metrics related to the core elements of the value chain. Where upstream and downstream data are also considered, these are disclosed separately under the corresponding topics and/or data sections. See Section 10.1.6 Identified impacts, risks and opportunities for more information.6

No information related to intellectual property, know-how or innovation outcomes has been omitted from the Sustainability Report. Furthermore, no foreseeable events or matters under ongoing negotiations have been excluded from disclosure.7

Changes in the preparation or presentation of sustainability information8

The Triglav Group began systematically disclosing non-financial impacts in 2009, following the GRI G3 guidelines. In 2012, it identified seven material impact groups as its first material sustainability topics, and in 2015, conducted its initial materiality analysis, which involved stakeholder engagement. The Group has continuously enhanced its reporting by integrating new indicators and standards, such as SASB and SDGs, and by regularly updating key sustainability topics.

For the 2024 reporting period, the Group's sustainability disclosures have been restructured to align with the CSRD and ESRS. These changes include:

  • The inclusion of a Sustainability Report (ZGD-1M) in the Group's annual report, prepared in accordance with ESRS requirements;
  • The implementation of a double materiality assessment process in line with ESRS requirements to identify material impacts, risks and opportunities in insurance and asset management activities, as well as, where applicable, in upstream and downstream segments of the value chain;
  • The introduction of new disclosures and indicators as required by the ESRS, encompassing descriptions of material impacts, risks and opportunities, along with the policies and metrics established to address them.

Compared to previous annual reports, changes were made in the carbon footprint calculation. Due to methodological challenges in the calculation of operational Scope 3, only Scopes 1 and 2 are included. Minor changes, including the methodologies used for calculating individual indicators, are detailed within the text and footnotes.9

10.1 General disclosures

Accounting report

Appendix

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Time horizons11

sustainability reporting13 This report also includes sustainability disclosures in accordance with the Global Reporting Initiative (GRI) sustainability reporting standards, including their

as well as the Sustainability Accounting Standards Board (SASB) and their industry-

and asset management. The range of topics and

GRI and SASB indices.

All content required by the ESRS is presented in Section 10. Sustainability Report. However, the information on risk management and internal controls over sustainability

the Accounting Report.

The table of the Triglav Group's key sustainability topics by year illustrates major shifts in their identification since their initial identification in 201210

The Company deviates from the 2012 (GRI G3.1) 2015 (GRI G4) 2019 (GRI GS) 2023 (GRI US) 2024 (ESRS)
proposed time horizons defined
in ESRS 1, section 6.4. Instead,
it has adopted time horizons
in its internal documents
based on the business cycle, as
recommended by EIOPA12. The
short-term is defined as 1 to
5 years, the medium-term as
6 to 10 years, and the long-term
as more than 10 years.
Disclosures arising from		 ƒ Governance of the organisation
ƒ Fair business practices
ƒ Employment and labour practices
ƒ Human rights
ƒ Relationship with clients and suppliers
ƒ Integration into and development of
the local environment and the wider
community
ƒ Care for the natural environment		 ƒ Ensuring capital adequacy
ƒ Profitability
ƒ Personal data protection
ƒ Prompt claims payouts
ƒ Business strategy and plans		 ƒ Understanding client needs
ƒ Engaged and highly skilled employees
ƒ A client-tailored insurance offering –
throughout the entire life cycle
ƒ Clear terms and conditions
ƒ In-depth information on the
Triglav Group's business performance
and position
ƒ The Triglav Group's clear strategy		 ƒ Fair and transparent business
ƒ Long-term stability and profitability
of operations
ƒ Business continuity and preparedness for
extreme events
ƒ Commitment to employee health
and safety
ƒ Comprehensive risk management		 ƒ Services and products promoting social
and environmental benefits
ƒ Data privacy and security
ƒ Climate change adaptation and mitigation
ƒ Supplier relationship management
ƒ Accessibility of services and
financial literacy
ƒ Community engagement
ƒ Transparent and easy-to-understand
products
ƒ Business ethics
ƒ Employee care
ƒ Equal treatment and opportunities for all

Sustainable development milestones of Zavarovalnica Triglav and the Triglav Group

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Appendix

10.1.2 Sustainable development management system15

Governance of Zavarovalnica Triglav

Zavarovalnica Triglav, as the parent company, has a two-tier governance system in place. Its governance bodies are as follows: General Meeting of Shareholders, Management Board and Supervisory Board. In 2024, the Management Board had five members, including one Worker Director:

  • Andrej Slapar, President of the Management Board. Professional profile: management, strategic management, commercial law, insurance and reinsurance, actuarial science.
  • Uroš Ivanc, Member. Professional profile: Management and organisation, strategic management, insurance, financial management, financial markets and analyses, asset management, actuarial analyses and risk management. Responsible for the environmental, social and corporate sustainable development (ESG) activities.
  • Tadej Čoroli, Member. Professional profile: Management, strategic management, commercial law, insurance, marketing.
  • Marica Makoter, Member and Worker Director. Professional profile: Management, strategic management, commercial law, insurance, human resources and organisation, worker representation.
  • Blaž Jakič, Member. Professional profile: Insurance, finance, accounting, business strategy and business models, governance systems, actuarial analyses, risk management.

The Company's conduct of business is supervised by the Supervisory Board. As at 31 December 2024, it consisted of eight members, six shareholder representatives and two employee representatives:

  • Shareholders representatives:
  • Andrej Andoljšek (Chairman),
  • Tim Umberger (Vice Chairman),
  • Barbara Nose, Member,
  • Tomaž Benčina, Member,
  • Monica Cramér Manhem, Member,
  • Rok Ponikvar, Member.
  • Employee representatives:
    • Aleš Košiček, Member
    • Janja Strmljan Čevnja, Member.

In 2024, the Company had the following committees: the Audit Committee, the Appointment and Remuneration Committee, the Strategy Committee and the newly established Risk Committee, as well as the Nomination Committee as an ad-hoc committee.

In assessing its composition and performance in accordance with the ZZavar-1 and the ZGD-1, the Supervisory Board takes into account that all members possess the relevant knowledge relating to insurance and financial markets, the business strategy and business models, governance systems, financial and actuarial analyses, risk management, and the regulatory and legal environment in which the Company operates, as well as the skills and experience in these areas.

By signing the Statement of Independence and the Statement of Loyalty, the members of the Supervisory Board confirmed that they comply with the conflict of interest criteria. The proportion of independent Supervisory Board members is 100%.

Sustainable development management

The organisation and operation of the sustainable development system is regulated in a way that ensures the overall alignment of all important sustainable development activities with the Group's strategic ambitions and compliance with sustainability-related legislative requirements.

The Management Board is responsible for developing and implementing the Group's strategy, which includes its strategic ambitions in sustainable development, while the Supervisory Board approves the Group's strategy and takes note of its implementation. The sustainable development policy is adopted by the Management Board and approved by the Supervisory Board. A Management Board member is responsible for the environmental, social and corporate sustainable development (ESG) activities.

All activities related to the Group's sustainable development is overseen by the Sustainable Development Department within the Management Board Office of the Group's parent company, of which the Management Board member responsible for the environmental, social and corporate sustainable development activities is directly in charge.

The Compliance and Sustainable Development Committee (hereinafter: CSDC) at the Company monitors the sustainable aspects of the Group's operations, and the Chairperson of the CSDC reports to the Management Board on the committee's work. The CSDC is composed of managers and other employees from various departments and divisions, following the principle of representing key departments and divisions. It ensures compliance, ethics and sustainability, with particular emphasis on the areas of focus for each meeting. The chair of the CSDC is a member of the Company's Management Board.

Depending on the needs and nature of the work, the Sustainable Development Department provides technical support to business functions and the Management Board, while also coordinating the formation of working groups to effectively implement strategic ambitions and meet sustainability-related legislative requirements.

Strategic impacts, risks and opportunities are addressed during each strategy update, starting from an analysis of key industry trends, stakeholder expectations, and identified social and environmental challenges (e.g. demographic change, climate change). The Group's strategic ambitions for 2025–2030 are shaped by the expectations of its owners for a profitable, safe and stable investment. These ambitions also reflect the evolving needs of its clients, with the Group aiming to continue delivering a safe and seamless user experience, while ensuring high employee satisfaction and engagement. This will be achieved through an agile and efficient organisational structure, with strengthened cooperation with partners. By pursuing the sustainability objectives outlined in its strategy, the Group seeks to maintain a long-term, sustainable foundation for profitable and safe operations, including supporting the transition to a sustainable society and mitigating its impact on climate change. Strategic risks are regularly monitored as part of the risk management process. Despite the long-term nature of the strategy period, the Group remains flexible and may adjust its strategy in response to significant changes in the business environment or the emergence of major strategic risks. The Group's ongoing product development and agile organisational culture enable it to swiftly adapt its product portfolio in response to market changes, even within a short timeframe. Additionally, by maintaining high liquidity within its investment portfolio, which constitutes the largest part of its assets, the Group can adjust its asset structure and facilitate reallocation as needed. Through an ongoing capital management process, the Group ensures an optimal volume and quality of its funding sources, along with the optimal cost of capital.16

Accounting report

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Appendix

The Company's business functions report sustainability-related activities to the Management Board, while the Sustainable Development Department provides updates twice a month to the Management Board member responsible for ESG. The Audit Committee of the Supervisory Board and the Supervisory Board monitor these processes and oversee sustainability reporting, which they discuss and approve as part of the adoption of each Triglav Group's annual report.17

In 2024, the Management Board members received an average of 18.6 teaching hours of training on sustainability-related topics. Additionally, an online training course on best sustainability practices in the insurance industry was organised for the Supervisory Board members in March 2024.18

Management of sustainability aspects in the Triglav Group

Integration of sustainability-related performance in incentive schemes19

The basis for the remuneration of the Management Board is the Remuneration Policy of Zavarovalnica Triglav d.d. (hereinafter: the Remuneration Policy), which is based on Directive 2009/138/EC – Solvency II, as amended by Directive 2012/23/EU, Commission Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC, Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector and the ZGD-1. The Remuneration Policy is one of the policies with which the Company implements a robust and reliable management system, ensures business integrity and transparency, and maintains the appropriate capital strength of the Company. Furthermore, it encourages reliable and effective risk management, and provides for the acquisition and retention of appropriately professionally qualified, competent, responsible and engaged employees. The Policy is designed to take into account the Company's internal organisation and the nature, scope and complexity of risks by including sustainability risks. The variable remuneration of employees is determined by taking into account the implementation of strategic guidelines, which also include the commitments to sustainability, long-term interests and performance of the Company and the Triglav Group as a whole. In 2024, the Remuneration Policy was amended in accordance with SDH's recommendations and current legislation. The Remuneration Policy was approved at the 49th General Meeting of Shareholders of Zavarovalnica Triglav d.d. on 4 June 2024.

The remuneration of the Management Board members consists of the basic salary (fixed part) and a variable part of the salary. The basic salary is based on the Remuneration Policy, the employment and performance contract and the Act Governing the Remuneration of Managers of Companies with Majority Ownership Held by the Republic of Slovenia or Self-Governing Local Communities (ZPPOGD). In accordance with the revised Remuneration Policy, the basic salary of the President and members of the Management Board shall not exceed EUR 22,000.00. Every two years, the ceiling shall be increased according to the increase in the average consumer price index for each of the last two years.

The contract of employment and appointment to office concluded with the President and the members of the Management Board will set the basic salary within the limits defined in this Policy, i.e. the amount of the basic salary of the President of the Management Board shall be set at the ceiling and the amount of the basic salary of each Management Board member shall be up to a maximum of 95% of the President of the Management Board's salary, depending on the duties and responsibilities of the specific Management Board member (e.g. taking into account the sectoral division of their areas of responsibility, their individual qualities (knowledge, experience, references, skills) and the remuneration of members of the management bodies of comparable companies in the insurance sector in Slovenia and in the region).

Notwithstanding the above, during the period of validity of the ZPPOGD, the basic salary of the President of the Management Board is set at five times the average gross salary in the previous financial year, paid in the Triglav Group companies headquartered in the Republic of Slovenia and consolidated in the annual report in accordance with the Companies Act, while the basic salary of the Management Board members is set at 95% of the basic salary of the President of the Management Board.

The performance-based variable remuneration may be set at a maximum of 60% of the basic salaries paid in the financial year. If the Company meets at all of the following criteria: it is a public limited company, more than 50% of its net revenue is generated in foreign markets, it has more than 5,000 employees in the group and it has at least EUR 500 million of share capital, a performance-based variable remuneration may be set up to a maximum of 100% of the basic salaries paid in the financial year. Notwithstanding the above, during the period in which the ZPPOGD applies, the amount of the variable remuneration may be set at a maximum of 30% of the basic salaries paid in the financial year. The variable remuneration includes part of the salary for performance, part of the salary for the overall performance based on the overall annual targets of the Management Board and part of the salary for individual performance based on personal annual targets.

2024 Key Highlights

10.1 General disclosures

Accounting report

Appendix

The Management Board's performance is determined by taking into account the Company's performance in the short and long term, including taking into account the current and future risks to which the Company is exposed. The performance assessment takes into account:

  • Financial criteria (70% of all criteria) that can measure the business volume, profitability of the insurance activity, profitability of the investment activity, cost efficiency, return on equity and growth in the Company's value or other financial performance criteria.
  • Non-financial criteria (30% of all criteria) that can measure the achievement of the business strategy's non-financial objectives, compliance with the relevant regulations, internal acts and limitations from the risk appetite statement, compliance with ethical and professional standards, the achievement of sustainable development goals (environmental, social, governance), and other non-financial performance criteria.

The variable remuneration is set in more detail using a methodology approved by the Supervisory Board upon approval of the plan for the next financial year and a one-on-one annual interview with each Management Board member, where the personal annual targets are identified.

The variable remuneration proportion for Management Board members tied to the Management Board's overall annual and medium-term sustainability objectives was up to 2.5% of their basic salaries paid in 2024. Additionally, for Management Board members with sustainability objectives included as part of their personal annual objectives, the proportion was up to 7.5% of their basic salaries.

Environmental objectives, particularly carbon footprint reduction, are included among the criteria assessed in the context of the sustainability objectives tied to the Management Board's remuneration.

Data on the remuneration of the Management Board members are disclosed in Section 4.4 of the Accounting Report.

Due diligence statement20

The due diligence system ensures compliance with legislation, external commitments and internal documents. Due diligence is conducted through targeted compliance reviews, internal audits, monitoring operational loss event reports, providing recommendations, tracking corrective actions and their effectiveness, regular risk assessments, evaluating the adequacy of internal controls. Regular compliance audits address sustainability areas such as scenario assessments for sustainability risks, non-compliance with human rights, ethical commitments, corruption and bribery prevention, management of conflicts of interest, internal fraud risks and violations related to labour and health and safety at work.

The table below outlines how the Group implements the core elements of due diligence for people and the environment, and where details are provided in the Sustainability Report.

Core elements of due diligence Sections in the Sustainability Report Disclosures relate to impacts on
people and/or the environment
(a) Embedding due diligence in governance, ƒ ESRS 2 GOV-2 – section 10.1.2 ƒ People and the environment
strategy and business model ƒ ESRS 2 GOV-3 – section 10.1.2 ƒ People and the environment
ƒ ESRS 2 SBM-3 – sections 10.1.3, 10.1.6 ƒ People and the environment
(b) Engaging with affected stakeholders in ƒ ESRS 2 SBM-2 – section 10.1.4 ƒ People and the environment
all key steps of the due diligence ƒ S1 – section 10.3.1 ƒ People
ƒ S3 – section 10.3.3 ƒ People
ƒ S4 – section 10.3.2 ƒ People
(c) Identifying and assessing ƒ ESRS 2 IRO-1, section 10.1.5 ƒ People and the environment
adverse impacts ƒ ESRS 2 SBM-3, section 10.1.6 ƒ People and the environment
(d) Taking actions to address those ƒ ESRS 2 MDR-A, section 10.1.2 ƒ People and the environment
adverse impacts ƒ E1 – section 10.2.1 ƒ The environment
ƒ S1 – section 10.3.1 ƒ People
ƒ S3 – section 10.3.3 ƒ People and the environment
ƒ S4 – section 10.3.2 ƒ People
ƒ G1 – section 10.4.1 ƒ People
(e) Tracking the effectiveness of ƒ S1 – section 10.3.1.2, 10.3.1.3 ƒ People
these efforts and communicating ƒ S3 – section 10.3.3 ƒ People
ƒ S4 – section 10.3.2.1 ƒ People
ƒ G1 – section 10.4.1 ƒ People

Risk management and internal controls over sustainability reporting

Risk management, including sustainability risks, is outlined in Section 2.8 Risk management in the Accounting Report. Sustainability risk management systems and processes are embedded in this internal process and are continuously upgraded.21

10.1 General disclosures

Accounting report

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Appendix

10.1.2.1 Strategic ambitions in sustainable development22

In the Triglav Group's strategic ambitions for sustainable development (ESG) covering the period of 2021– 2025, it is set out that by pursuing sustainability goals the Group is creating a long-term stable basis for its profitable and safe operations, promoting the transition to a sustainable society and reducing its impact on climate change. This approach is pursued across four key areas: insurance and asset management, own business processes, responsible stakeholder engagement and effective corporate governance.

In 2023, the Group's strategic ambitions were further developed with the adoption of its Sustainable Development Policy. Serving as the overarching document for the Group's sustainability-related activities, it outlines the method of implementing the strategic ambitions, establishes the system for managing ESG aspects and risks, defines key corporate governance policies and provides guidelines for sensitive economic activities. The Group views sustainable development as an opportunity across its asset management, insurance product development, claims handling and energy efficiency segments. It is committed to increasing the proportion of investments with sustainability characteristics, such as green and social impact bonds. Triglav Skladi funds support environmental and social characteristics, in alignment with Article 8 of the SFDR. In the insurance sector, products such as solar power plant insurance, micromobility insurance, parametric insurance for climate risks and benefits for young farmers are being developed. Looking ahead, the focus will be on expanding insurance offerings for sustainable mobility and providing effective risk protection to companies using renewable energy sources. Its sustainable (ESG) ambitions for 2025 are divided into four key areas, which are presented below.23

Insurance and asset management

In both strategic activities, insurance and asset management, the Group's activities are focused on the transition to a climate-neutral and climate-resilient circular economy. In carrying out its insurance and investment activity, the Group promotes sustainable economic activity, energy efficiency and energy from renewable sources with an aim to reduce greenhouse gas The ESG aspects are integrated into the development of insurance and investment products and services.

In asset management, the Group will not only double the share of its green and sustainable investments compared to the 2020 base year, but also reduce its exposure to issuers on the Coal Exit List (companies at which at least 20 per cent of electricity production or income stems from coal) to less than one per cent of total investment value by 2025.

In its insurance activity, the Group will develop new and increase the presence of existing index-based insurance products for drought, flood and other climate risks. The Group promotes its range of insurance products related to sustainable mobility and provides effective risk protection for companies involved in the production of energy from renewable sources.

Triglav Group's business processes

The Company has set up an assessment of suppliers by sustainability criteria and the Group's comprehensive carbon footprint measurement and management (Scope 1 and 2). Key quantitative performance indicators by 2025:

  • Reduce the location-based carbon footprint (Scope 1 and 2) per employee by 15% compared to the 2019 base year;
  • Increase the share of electricity from renewable energy source to 75%;
  • Increase the share of electric and hybrid vehicles in the fleet to at least 30%.

Responsible stakeholder engagement

The Group acts with responsibility towards its employees, clients, partners and community at large. It aims to maintain high levels of client (NPS)24 and employee satisfaction. The concept of flexible working was implemented with the aim of improving employees' work-life balance, while expanding programmes promoting health and well-being. The focus will continue to be on multidimensional diversity, intergenerational cooperation, and employee development and training. The Group will continue to participate in corporate social responsibility projects and enter into partnerships and give donations. In parallel, the Group will promote environmental and social responsibility projects that contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).

Effective corporate governance

The Group attains high standards of corporate governance and adheres to its code of ethics in the performance of its business operations. By incorporating environmental, social and governance factors, the Group plans to upgrade succession, diversity and remuneration policies for the members of the management and strive to improve the diversity of the Group's management and supervisory bodies in terms of gender, education and experience. The Group will increase the scope of public disclosures on its sustainable operations by 2025.

At the end of 2022, a Sustainable Development Action Plan was developed for individual areas, serving as the basis for implementing strategic actions and meeting legislative requirements.

10. Sustainability report

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Appendix

Implementation of strategic guidelines and sustainable development goals of the Triglav Group in 2024

Insurance and asset management

  • The share of green, sustainable and social impact bonds in own investment portfolio: an increase from 11.1% to 12.9%.
  • Triglav Skladi mutual funds: as at 1 December 2024, all funds were restructured into funds promoting environmental and social characteristics, in accordance with Article 8 of the SFDR.
  • Income from insurance products that promote general social and environmental benefits: an expanded product range and an increase in written premium in the insurance business.
  • The Group's business processes
  • Reduction of the Group's carbon footprint for Scope 1 and 2 (location-based): a decrease of 12%.
  • Increase the share of electricity from renewable energy sources from 62% to 66%.
  • Sustainable mobility: a higher share of electric and hybrid vehicles in the fleet from 11% to 17%.

Responsible stakeholder engagement

  • Delivering on the SDGs: continuing the Insure Our Future project with partners.
  • Maintaining a high ORVI index.
  • Active relations with shareholders and investors and compliance with Ljubljana Stock Exchange Prime Market terms and conditions.

Effective corporate governance

Standards: high standards of corporate governance.

93

  • Policies: implementation of the Group's Sustainable Development Policy, Sustainable Investment Policy and Statement on principal adverse impacts of investment decisions of the Company on sustainability factors.
  • Global alliances: a signatory to the United Nations Principles for Responsible Investing (PRI) and the United Nations Principles for Sustainable Insurance (PSI).

2024 Key Highlights

10.1 General disclosures

Accounting report

Appendix

Triglav Group
Strategic indicator Unit 2019 achievement 2020 achievement 2021 achievement 2022 achievement 2023 achievement 2024 achievement 2025 strategic plan
Carbon footprint (Scope 1 and 2 – location-based) per employee tCO2 eq/employee 2.18 1.99 1.90 1.64 1.51 1.34 1.85
Share of electricity consumption from renewable energy sources % 1% 4% 33% 63% 62% 66% 75%
Energy consumption per employee TOE/employee 0.47 0.41 0.30 0.31 0.29 0.27 0.40
Average daily consumption of office paper per employee (A4) A4 sheet 53 45 20 19 17 17 27
Amount of waste generated per employee kg/employee 109 125 124 116 117 129 93
Share of electric and hybrid vehicles in the fleet % 4% 4% 4% 8% 11% 17% 30%
Share of investment exposure to issuers on the Coal Exit List % na na na na 0% 0% <1%
Share of ESG bonds % na 4% 8% 10% 11% 13% 8%
Share of in-house training via e-platforms % na 81% 91% 67% 52% 55% >30%
Share of women in the Group's management and supervisory boards % 20% 13% 18% 24% 27% 26% >20%
Average number of training hours per employee Number 5 24 31 33 32 31 28
Digital training for employees % 21% 37% 81% 62% 52% 50% 0.35%
Employee satisfaction Index ORVI 3.88 3.99 4.00 4.00 3.94 3.97 3.80

10.1.2.2 Sustainable development policy26

Strategic ESG Indicators25

The Sustainable Development Policy of Zavarovalnica Triglav d.d. and the Triglav Group (hereinafter: the Policy) establishes the framework for the Group's sustainable development. The Policy was adopted by the Company's Management Board and Supervisory Board. The goal is to conduct the Group's core activities, i.e. insurance and asset management, in a manner that delivers long-term economic, social and environmental value to shareholders, investors, clients, employees, suppliers, partners, the wider society and the environment.

The Policy defines how the Group's strategic ambitions in sustainable development (ESG) will be achieved. It addresses the following: the identification of risks and the perception of opportunities to achieve business objectives; the sustainability management system at the parent company and Group levels; guidelines on managing sensitive economic activities in terms of sustainability risks; key corporate governance policies; and other key aspects of sustainable development, such as responsibility to employees and corporate social responsibility projects. In November 2024, the Group enhanced its strategic ambitions in sustainable development with long-term goals extending to 2030. These goals focus on reducing the Group's carbon footprint, increasing environmentally sustainable investments and bonds with sustainable characteristics, and developing insurance products for renewable energy sources and sustainable mobility. At the same time, the Group is reinforcing corporate social responsibility, diversity and ethical business practices to ensure long-term resilience and sustainable growth.

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Appendix

The table below provides an overview of key policies related to the management of identified material impacts, risks and opportunities. Further details on these policies are provided in the individual sections. Material impacts, risks and opportunities are described in Section 10.1.6.

Policy Key policy messages Areas of application Responsible body Related standards/initiatives Availability
Sustainable Development Policy ƒ A framework for implementing the Group's sustainability strategy
ƒ Commitment to long-term economic, social and environmental value
creation
ƒ The sustainable development management system at the Triglav Group
ƒ Guidelines on sensitive economic activities
ƒ Sustainability risk management
ƒ Employee well-being, diversity and inclusion
ƒ Sustainability reporting and stakeholder engagement		 The Triglav Group (except for the clients' assets
managed in mutual funds and discretionary
mandate assets, which are managed by the
Group's asset management companies)		 Management Board of
Zavarovalnica Triglav		 United Nations Principles for Sustainable
Insurance (UN PSI), Partnership for Carbon
Accounting Financials (PCAF)		 Corporate website
Sustainable Investment Policy The Triglav Group (except for the clients' assets
managed in mutual funds and discretionary
mandate assets, which are managed by the
Group's asset management companies)		 Management Board of
Zavarovalnica Triglav		 SFDR, United Nations Principles for
Responsible Investment (UN PRI)		 Corporate website
Succession Policy for Management
Members of Triglav Group Companies		 Triglav Group Business function Internal – the internal documents
module on the intranet
Policy on the Management of
Key High-Potential and
Young High-Potential Employees		 ƒ Acquisition and retention of high-quality staff
ƒ Succession planning
ƒ Ensuring a positive working environment
ƒ Commitment to employee engagement, satisfaction and health
ƒ Promotion of knowledge transfer at Group level
ƒ Creation of a uniform organisational culture
ƒ The Triglav Group's ethical principles guide actions to uphold its
reputation, build trust in the brand, and ensure successful, profitable
and sustainable operations in line with its objectives, mission, vision and
strategy.
ƒ They establish uniform corporate business and ethical standards,
complementing the standards of conduct followed by all employees.
ƒ Everyone acting on behalf and for the account of the Group companies
is committed to adhering to these principles. They serve as a guide for
addressing workplace challenges, making responsible decisions and
navigating ethical dilemmas.
ƒ They provide direction for drafting internal regulations within Group
companies, ensuring compliance with the provisions of the Code.
ƒ Consideration, identification, reporting and investigation of unfair practices
ƒ Measures to protect whistleblowers from retaliation and to provide
immediate assistance
ƒ Protection of the whistleblower's identity
ƒ It defines the key elements of the corruption risk management system
designed to effectively prevent and detect corrupt practices and
establishes the procedure for reporting and handling cases that may pose
a corruption risk and requires employees to take an active role.
ƒ It sets out written rules, procedures and standards for organising the
Compliance Office.
ƒ Reporting and supervision lines
ƒ Organisation of the compliance function, Compliance and Sustainable
Development Committee
ƒ Education, information and training
ƒ Consistency in taking action for non-compliant behaviour
ƒ Determining the effectiveness of the compliance system
ƒ Management of compliance risks		 Triglav Group Business function Internal – the internal documents
module on the intranet
Employee Development and Care Policy Zavarovalnica Triglav Business function Internal – the internal documents
module on the intranet
Rules on the Protection of
Workers' Dignity		 Zavarovalnica Triglav Business function Internal – the internal documents
module on the intranet
Rules on Specialised In-House Training
in the Triglav Group		 Triglav Group Business function Internal – the internal documents
module on the intranet
Triglav Group Code Triglav Group Management Board of
Zavarovalnica Triglav		 UN Universal Declaration of Human Rights,
ILO Declaration on Fundamental Principles
and Rights at Work, Commitment to Respect
Human Rights in Business, National Action
Plan of the Republic of Slovenia on Business
and Human Rights, Slovenian Corporate
Governance Code, Slovenian Corporate
Integrity Guidelines, Insurance Code		 Corporate website
Rules on the Handling of Internal Fraud
and Violations of the Triglav Group Code		 Zavarovalnca Triglav Business function Commitment to Respect Human Rights in
Business, Directive (EU) 2019/1937		 Internal – the internal documents
module on the intranet
Corruption Risk Management Policy Triglav Group Management Board of
Zavarovalnica Triglav		 United Nations Global Compact Slovenia
Declaration on Fair Business
Slovenian Corporate Integrity Guidelines		 Internal – the internal documents
module on the intranet
Compliance Policy ZZavar-1, Commission Delegated Regulation
(EU) 2015/35 supplementing Directive
2009/138/EC (Solvency II), EIOPA Guidelines
on System of Governance		 Internal – the internal documents
module on the intranet
2024 Key Highlights

10. Sustainability report 10.1 General disclosures

Appendix

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024
--------------------------------------------------------------------- -- -- -- --
Policy Key policy messages Areas of application Responsible body Related standards/initiatives Availability
Diversity policy ƒ Prohibition of discrimination based on race and ethnic origin, colour,
gender, sexual orientation, gender identity, disability, age, religion,
political opinion, or national or social origin
ƒ Recognising, preventing and eliminating the consequences of
discrimination, sexual and other harassment and workplace mobbing
ƒ Ensuring diversity
ƒ Gender representation		 Triglav Group Management Board Internal – the internal documents
module on the intranet
Rules on the Implementation of
Prevention Activities and the Allocation
of Funds for Prevention		 ƒ General principles and guidelines for the development of Triglav Group Business function Internal – the internal documents
module on the intranet
Guidelines on Sponsorship and
Donation Management		 prevention activities
ƒ Purpose and conditions for the use of funds allocated to		 Triglav Group Business function Internal – the internal documents
module on the intranet
Regulations on Sponsorship and
Donor Partnerships		 preventive measures
ƒ Conditions, methods and procedures for managing sponsorship and
donor partnerships		 Triglav Group Business function Internal – the internal documents
module on the intranet
Rules on Sponsorship and
Donor Partnerships		 Triglav Group Business function Internal – the internal documents
module on the intranet
Triglav Group Communication Code ƒ Fundamental principles for effective and balanced communication
ƒ Positioning of the communication function, responsibilities for
communication
ƒ Communicating in a crisis		 Triglav Group Business function Internal – the internal documents
module on the intranet
Policy on Insurance Product
Governance, Oversight and
Distribution at Zavarovalnica Triglav		 ƒ Consumer protection
ƒ Identification and tracking of the needs of the target market		 Zavarovalnica Triglav Management Board,
person responsible for
distribution		 Directive (EU) 2016/97, Commission
Delegated Regulation (EU) 2017/2358
supplementing Directive (EU) 2016/97,
Commission Delegated Regulation (EU)
2017/2359 supplementing Directive (EU)
2016/97, Commission Delegated Regulation
(EU) 2021/1257 amending Delegated
Regulations (EU) 2017/2358 and (EU)
2017/2359, EIOPA Guidelines, supervisory
bodies' views and good business practices
of Zavarovalnica Triglav d.d.		 Internal – the internal documents
module on the intranet
Overarching Information Security Policy
of Zavarovalnica Triglav		 Zavarovalnica Triglav Business function EIOPA, DORA, ISO 27001 Internal – the internal documents
module on the intranet
Privacy Policy ƒ Establishment, operation, monitoring, maintenance and improvement of
the information security management system		 Zavarovalnica Triglav Business function GDPR Corporate website
Cookie Policy ƒ Personal data protection Zavarovalnica Triglav Business function GDPR Corporate website
Personal Data Protection Rules ƒ Rules for the lawful processing of data in specific business segments Business function GDPR Internal – the internal documents
module on the intranet
Remuneration Policy
Remuneration policy for the members
of the supervisory and management
bodies of Group subsidiaries		 ƒ Business integrity and transparency
ƒ Maintenance of the appropriate capital strength of the Company		 Zavarovalnica Triglav,
Triglav Group subsidiaries		 Business function ZGD-1, Solvency II Directive, Commission
Delegated Regulation (EU) 2015/35
supplementing Directive 2009/138/EC, EU
Regulation 2019/2088 and local legislation		 Internal – the internal documents
module on the intranet
Zavarovalnica Triglav's
Procurement Policy		 ƒ Definition of the core development guidelines in procurement, fostering Zavarovalnica Triglav's partners and suppliers Business function Code, Outsourcing Policy,
information security		 Corporate website
Agreement Management Policy long-term partnerships and emphasising sustainability
ƒ Definition of the selection process with built-in internal controls		 Business function Internal – the internal documents
module on the intranet
Rules on Procurement at
Zavarovalnica Triglav		 ƒ Supplier suitability assessment, with a focus on compliance and
sustainability
ƒ Definition of roles in the procurement process and agreement		 Business function Internal – the internal documents
module on the intranet
General terms and conditions for
Zavarovalnica Triglav's suppliers		 management

Business report 2024 Key Highlights

10.1 General disclosures

Accounting report

Appendix

Policy Key policy messages Areas of application Responsible body Related standards/initiatives Availability
Governance System and Policy of
Zavarovalnica Triglav d.d.		 ƒ Definition of the key elements of the Company's governance system
and the main governance rules for the Company and the Group,
aligned with the Group's strategy.
ƒ Definition of transparent internal relationships of responsibility and
powers within the governance system.
ƒ Establishment of a sustainable orientation in environmental, social
and governance (ESG) areas, creating a long-term stable basis		 Zavarovalnica Triglav Management Board of
Zavarovalnica Triglav		 ZZavar-1 Corporate website
for its profitable and safe operations, promoting the transition to
a sustainable society and reducing its impact on climate change.
ƒ Outlining the organisation and operation of a sustainable development
system that ensures the overall alignment of all important sustainable
development activities with the Group's strategic ambitions and
compliance with sustainability-related legislative requirements.

10.1.3 Triglav Group's business model and value chain27

Sources of value creation

Assets for the Group's operations stem from a solid capital base, written premiums and funds from shareholders and investors. Employees, bringing together a diverse range of skills and talents, form the foundation for the Group's success and the implementation of its development strategy. In collaboration with partners and suppliers, the Group ensures business continuity and the widespread availability of its products and services, while prevention projects are also carried out. Efforts are ongoing to improve the efficient use of natural resources.

For more information, see sections 8. Operations of the Triglav Group and Zavarovalnica Triglav and 10.3.3. Community engagement.

Value created for stakeholders

Clients are provided with financial security, health and asset protection through insurance, claims payments, asset management, and additional assistance and prevention services. Through stable and development-oriented operations, the value of the Group's assets and its shareholders and investors is increased. Employees are provided with a safe, healthy and stimulating working environment. Locally-oriented and responsible procurement is supported through investment, tax payments, accessible services and contributions to economic development, the social environment and green transition efforts. The Group is involved in the development of local communities and the insurance sector. The goal is to be a reliable partner that promotes proactive risk management, financial literacy in society and responsible supplier conduct.

For more information see sections 6. The share and shareholders of Zavarovalnica Triglav, 10.1.4 Key stakeholders, 10.2.1 Climate change mitigation, 10.3.1 Employee care, 10.3.2 Clients, 10.3.3 Community engagement and 10.4.2 Supplier relationship management.

Distribution, advice and client support

Clients are offered a comprehensive range of products and services through various distribution channels. Access to these services is facilitated through the Group's extensive sales network and contractual sales partners in the Adria region and international markets, operating under the FOS and FOE principles. These include specialised partners, insurance brokerage companies and providers of non-insurance products and services, such as roadworthiness test providers, equipment manufacturers and banks.

Triglav Group clients

The Triglav Group is the leading insurance and financial group in the Adria region, employing 5,204 people and generating total revenue of EUR 1,393.2 million or EUR 1,622.3 million in written premium. Products and services are offered to individuals and corporate clients, including small and medium-sized enterprises and large business entities. In cooperation with subsidiaries and through a network of business partners, the Group's operations are carried out in six markets in the Adria region and internationally, with Slovenia as its core market. In the insurance sector, the Group offers a wide range of non-life, life, health and reinsurance products. In asset management, services include own-portfolio management, client savings solutions, management of client assets in mutual funds and discretionary mandate services.

2024 Key Highlights

10.1 General disclosures

Accounting report

Appendix

10.1.4 Key stakeholders28

The review, assessment of the relevance and updating of the Group's key stakeholders were based on the AA1000 Stakeholder Engagement Standard, an analysis of sector practices (focusing on large insurance and financial groups in the region), and the Group's specific characteristics. The update was made based on the existing identification of stakeholders in Zavarovalnica Triglav's Governance System and Policy.

The Triglav Group stakeholders:

  • Clients
  • Employees
  • Shareholders and investors
  • State and supervisory authorities
  • Partners and suppliers
  • Local communities, interest groups and nature
  • Media

Highlighted topics and engagement results of key stakeholders

The Group's stakeholders are included in the Group's operations, thereby strengthening mutual trust and understanding. Their needs and interests, as well as the impacts of the Group's operations on them, are identified through mutual relationships at strategic and operational levels. In doing so, the Company measures reputation, satisfaction and Net Promoter Score (NPS), monitors regulatory changes and implements their requirements and recommendations, analyses complaints and compliments, maintains daily contact with investors and clients, regularly communicates with the media and so on. Employee satisfaction is measured by the ORVI index. Interests, opinions, and suggestions are regularly monitored by analysing the needs and interests of stakeholders. Based on this analysis, the scope of disclosures is outlined in the annual report.29

Gained knowledge and guidelines are taken into account as much as possible in the Group's business and operations. The table below shows the key stakeholder interests identified, the forms of engagement with them and the key results of the engagement.30

Stakeholders Key interests Engagement method Engagement results
Clients
ƒ Insured
ƒ Investors, savers in funds
ƒ Users of assistance services
ƒ Users of other services		 ƒ Understanding client needs
ƒ Rapid claim settlement
ƒ Innovative financial and insurance products and services
ƒ Clear terms and conditions
ƒ Personal data privacy and security
ƒ Quality insurance and financial products and services
ƒ A broad range of quality assistance services
ƒ Financial literacy
ƒ Digital ways of doing business and an easy-to-use online presentation of
products/services
ƒ Raising awareness of users about risky behaviour and promoting prevention		 ƒ Personal contact with insurance experts, asset managers
ƒ Recording complaints and compliments and responding thereto
ƒ Email
ƒ Telephone conversations
ƒ Opinion polls and surveys
ƒ Websites, blogs and e-newsletters
ƒ Social networks
ƒ Mobile apps
ƒ Marketing communication		 ƒ 413,644 telephone conversations in Zavarovalnica Triglav's call centres
ƒ 50,938 replied electronic messages in Zavarovalnica Triglav
ƒ More than 24,000 subscribers to the newsletters Vozim se (I'm driving) and
Vse bo v redu (Everything Will Be Alright)
ƒ 274,369 users of the i.triglav digital office
ƒ More than 47,000 regular users of the Vozim se and the Vse bo v redu portals
ƒ NPS of the Group is 70 and 66 of Zavarovalnica Triglav
ƒ 430,262 processed claim files at Zavarovalnica Triglav
ƒ 3,784 complaints and 44 compliments in Zavarovalnica Triglav
Employees ƒ Internal culture of cooperation
ƒ Rewarding of performance
ƒ Personal and professional development
ƒ Career advancement system
ƒ Information about important milestones and changes in the Company
ƒ Business strategy
ƒ Work-life balance
ƒ Equal treatment and opportunities for all		 ƒ Participation in management
ƒ Career development and training system
ƒ Measurement of organisational vitality
ƒ Opinion polls and surveys
ƒ Triglav.smo programme
ƒ In-house print and online media
ƒ In-house events, professional training, sports and recreational events
ƒ Personal contact
ƒ Email		 ƒ 3.97 – the ORVI index at a high level
ƒ 1,420 of employees are members of the Triglav Group mountaineering and
sports clubs
ƒ Supplemental pension insurance for 59% employees of the Group and 97%
of the Company
ƒ The group insurance package Comprehensive Medical Care (Celostna
zdravstvena oskrba – CZO), in which 70% of all employees of the Group and
84% of the parent company are included
ƒ 31 training hours per employee at Group level
ƒ A family-friendly enterprise
Shareholders and investors
ƒ Shareholders and potential
investors
ƒ Financial analysts
ƒ Brokerage firms
ƒ Institutional investors
ƒ Investment firms		 ƒ Business strategy and its implementation
ƒ Operations
ƒ The Group's position and plans
ƒ The implementation of the dividend policy and ZVTG share profitability
ƒ Capital adequacy and risk management
ƒ Implementation of growth and development activities
ƒ Performance by particular market, situation in the markets and outlook
ƒ Corporate governance and sustainable operations
ƒ Cost-effectiveness		 ƒ General Meetings of Shareholders
ƒ Sessions of the Supervisory Board and its committees
ƒ Quality and up-to-date information on the SEOnet
ƒ Presentation for Investors
ƒ Active contact and relations with institutional investors (investor
conferences, individual meetings, conference calls)
ƒ Organised presentations for retail shareholders (individual investors) and
provision of information
ƒ Corporate website and LinkedIn
ƒ Minority shareholders' associations		 ƒ 77% of all voting rights at the annual General Meeting of Shareholders
ƒ The Company provides organised collection of proxies to vote at the
General Meeting of Shareholders
ƒ 29 publications of controlled information (all in Slovenian and English)
ƒ 9 events held for institutional investors
ƒ 3 organised presentations for retail investors
ƒ Cooperation with minority shareholders' associations
ƒ An available financial calendar of all key announcements
ƒ An available calendar of events for investors

10.1 General disclosures

Appendix

Stakeholders Key interests Engagement method Engagement results
State and supervisory bodies
ƒ Government
ƒ Ministries and government agencies
ƒ Securities Market Agency
ƒ Insurance Supervision Agency		 ƒ Ensuring capital adequacy
ƒ Safety of policyholders and/or users of insurance services
ƒ Efficient risk management system
ƒ Compliance of operations and insurance and financial services and
products
ƒ Complying with all obligations of a public company
ƒ Responsible and sustainable operations		 ƒ Regulatory reporting (to the Insurance Supervision Agency, the Securities
Market Agency)
ƒ Regular reviews by inspection and supervisory bodies
ƒ Audits by certified auditors		 ƒ 70 complaints with respect to personal data protection at the Triglav Group,
43 of which were grounded
ƒ 1,119 fraud cases confirmed out of 1,756 reported cases of suspected
insurance fraud insurance
Partners and suppliers
ƒ Insurance agents
(external sales network)
ƒ Suppliers
ƒ Ecosystem partners and
assistance service providers		 ƒ Long-term cooperation
ƒ Reliable and timely payments
ƒ Upgrading the existing cooperation
ƒ Delivery times, prices of services and goods
ƒ Delivery of environmentally friendly material
ƒ Paperless operations		 ƒ Public tenders and competitions
ƒ Working meetings
ƒ Email and electronic operations
ƒ Telephone conversations
ƒ Assessment of suppliers according to ESG criteria		 ƒ 1,047 assessments of suppliers according to regulatory and expanded
sustainability criteria to check suppliers' compliance with employee rights,
human rights and environmental legislation
Local communities, interest groups
and nature
ƒ Local communities
ƒ Municipalities, local self-government
ƒ Industry associations
ƒ Expert community
ƒ Interest associations
ƒ Non-governmental organisations
ƒ Other initiatives, societies
and associations in which
the Triglav Group participates		 ƒ Traffic and fire safety
ƒ Health protection and care
ƒ Co-development of projects in the areas of culture, sport, prevention,
health, art and charity
ƒ Infrastructure investments
ƒ Access to services for people with various disabilities
ƒ Insurance and financial literacy
ƒ Fair business practices
ƒ Disaster relief		 ƒ Partnerships with non-profit organisations and educational institutions and
execution of joint projects
ƒ Joint projects with local communities, particularly in traffic safety
ƒ Funds allocation system for sponsorships and donations
ƒ Cooperation with local decision-makers
ƒ Email
ƒ Telephone conversations		 ƒ The Insure Our Future communication platform brings together more than
200 partners to implement sustainability-related activities to achieve UN
goals
ƒ Support for 155 young talents in twelve years of the Young Hopes project
ƒ 2,200 motorcyclists attended safe driving workshops over ten years
ƒ More than 130,000 road users refresh, renew and improve their knowledge
of safe road behaviour on the Vozim se portal
ƒ A total of 113 events to promote insurance literacy, risk awareness,
presentation of products and services were held
ƒ 24 sponsored top athletes in Slovenia
ƒ EUR 2.9 million for prevention activities, EUR 5.8 million for sponsorships
and EUR 0.8 million for donations
Media ƒ Transparent information about the operations, events and changes in the
Triglav Group
ƒ Information about insurance and financial products and services
ƒ Cooperation with local and broader communities
ƒ Professional insurance and financial topics		 ƒ Press releases and statements
ƒ Meetings with media representatives
ƒ Answers and explanations
ƒ Email
ƒ Telephone conversations
ƒ Websites		 ƒ 63 press releases by Zavarovalnica Triglav
ƒ 255 answers to the questions of the press by Zavarovalnica Triglav
ƒ 8,357 publications related to key topics about the Triglav Group in
the media

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2024 Key Highlights

Accounting report

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Appendix

10.1.5.1 The double materiality assessment process31

10.1.5 Double materiality assessment

In 2023, the Group initiated the double materiality assessment process in line with the CSRD and ESRS requirements. The process was led by the Company's Management Board member responsible for ESG and directly involved approximately 40 employees and representatives from key stakeholder groups.

The Group carries out the double materiality assessment from the top down starting with the evaluation of impacts, risks and opportunities (IROs) and working closely with subsidiaries to gather all necessary information (in line with EFRAG's recommendations for parent companies (EFRAG, paragraph 191) and in line with ESRS 1, paragraph 103).

The double materiality assessment process involves the following participants:

  • The Group's managers and other employees responsible for key business functions;
  • Internal experts who engage with the Group's key stakeholder groups and understand their interests and expectations;
  • Representatives of the Group's subsidiaries;
  • Representatives of key stakeholder groups.

The set of relevant sustainability topics and the IRO definition are based on:

  • The content requirements of ESRB topics, sub-topics and sub-sub-topics (as defined in ESRS 1 AR 16);
  • The established international sustainability reporting standards GRI;
  • The sustainability accounting standards (SASB standards) for the financial sector;
  • Good reporting practices in the insurance and financial services industry in Europe;
  • Identified risks and opportunities as part of the Group's ongoing risk management process;
  • Identified impacts of the Group on (key) stakeholders and nature;
  • Relevant external expert and internal sources;
  • The Group's existing material sustainability topics, strategy and policies.

The materiality assessment results and process are approved by the Risk Management Committee, the Compliance and Sustainable Development Committee and the parent company's Management Board. The Audit Committee of the Supervisory Board reviews and evaluates the results and process, granting approval during the annual report's approval.

10.1.5.2 Methodology32

Impact materiality

The sustainability topics are assessed in relation to at least two to four dimensions (scale, scope, likelihood, irremediable character), depending on the type of impact (as provided for in paragraphs 45 and 46 of the ESRS). Impact dimensions are evaluated using a six-point threshold scale, with scores ranging from 0 to 5.

The Triglav Group's impact materiality assessment was conducted in three steps. In the first step, internal experts assessed the sustainability topics. In the second step, their assessments were reviewed and supplemented by representatives of key stakeholder groups. The third and final step combined the assessments of both internal experts and stakeholder group representatives to complete the impact materiality assessment.

Financial materiality

The methodology for calculating the financial materiality of sustainability topics aligns with the ESRS 1 guidelines and incorporates the Group's existing risk and opportunity assessment methodology, in accordance with the recommendations of the European Insurance and Occupational Pensions Authority (EIOPA). The thresholds for determining the materiality of sustainability topics and the scale on which the topics are assessed are set in cooperation with the Risk Management Department and approved by the Risk Management Committee (RMC).

The topics and identified risks and opportunities are evaluated using a three-step scale that considers the likelihood of occurrence, the potential financial impact and the duration of the financial impact, in accordance with the Group's established risk assessment methodology. Because sustainability risks and opportunities are so diverse (and so are the associated options for quantifying financial impacts), financial impact thresholds can be defined quantitatively or qualitatively. Risks and opportunities are assessed separately.

At the time of the IRO's initial content definition, the analytical phase of the double materiality assessment process identified 20 sustainability topics in terms of financial materiality. At the time of the IRO's initial content definition, the analytical phase of the double materiality assessment process identified 20 sustainability topics in terms of financial materiality. These topics were subsequently reviewed during a strategy workshop and through additional questionnaires completed by 32 leaders and other relevant employees of the Company and several subsidiaries responsible for key business functions within the Group, aligned with the identified sustainability aspects. Based on this review, the IRO definitions were revised and updated, narrowing the initial set of sustainability topics from 20 to 19. In the next phase, leaders and other relevant employees further evaluated the financial materiality of the topics for the Group.

10.1 General disclosures

Accounting report

Appendix

10.1.6 Identified impacts, risks and opportunities

As part of the double materiality assessment process, 10 material topics were identified, along with 25 sub-topics ESRS, for which disclosures are prepared in the 2024 annual report. The analysis included a review of GRI and SASB standards relevant to the Group's sectors, i.e., financial services and asset management, providing a sectoral perspective and enabling the inclusion of topics specific to the Triglav Group. Of the 10 material sustainability topics presented in the matrix below, three are sector-specific and Triglav Group-specific: Services and products promoting social and environmental benefits, Accessibility of services and financial literacy, and Community engagement.

The Group's most material sustainability topics, identified through both aspects of the double materiality assessment – impact on people and the environment, as well as financial impact – are depicted in the top right quadrant of the graphic. Key areas with the highest materiality for the Group include Services and products promoting social and environmental benefits as well as Climate change adaptation and mitigation. They are followed by Data privacy and security, Supplier relationship management, Accessibility of services and financial literacy and Community engagement. Additionally, Transparent and easyto-understand products, Business ethics, Employee care and Equal treatment and opportunities for all are also considered material, particularly in terms of their impact on people and the environment.

Legend

The materiality threshold for sustainability topics for the Triglav Group

Business report 2024 Key Highlights

The Triglav Group's most material sustainability impacts, risks and opportunities (IROs) and their mapping across the value chain33

1. Address by the President of the Management Board
2. Triglav Group and Zavarovalnica Triglav in 2024
3. Report of the Supervisory Board		 IRO concentration in Timeframe
4. Triglav Group strategy and plans
5. Corporate Governance Statement
6. The share and shareholders of Zavarovalnica Triglav
7. Macroeconomic environment and market trends
8. Operations of the Triglav Group and
Zavarovalnica Triglav
9. Risk management
10. Sustainability report
10.1 General disclosures
10.2 Environmental aspects
10.3 Social aspects
10.4 Governance aspects		 The Triglav Group's most material sustainability impacts, risks and opportunities (IROs) and their mapping across the value chain the value chain
Impact,
risk or
opportunity		 Own activity
Upstream		 Downstream Short-term Medium-term
Long-term
The Group's insurance business is primarily exposed to the physical risks of climate change, given the forecasted increase in extreme weather events and related major CAT events. It is also exposed to
the heightened risk of concentration of (primarily) non-life insurance products within a limited geographic area, technological risks arising from advancements in motor vehicle technology, and legal risks.
These factors may significantly impact the Group financially through increased claims payments and higher reinsurance costs.
10.5 Limited Assurance Report on
Sustainability Information		 Climate change The Group's asset management activity is exposed to both physical and transition risks (the risk associated with transitioning to a low-carbon economy). Climate change and adaptation measures may affect
the underlying value of the businesses in which the Group invests or alter the value of assets under management.		 Risk X X X X X
11. Digital Operational Resilience Report
Accounting report		 adaptation and
mitigation		 Additionally, the Group is planning to decarbonise its own operations by reducing Scope 1 and 2 emissions (through reduced consumption, increased use of green energy, and lowering emissions from company
vehicles), while also focusing on reducing Scope 3 emissions (financed emissions or the carbon footprint of the investment portfolio).
Appendix By offering insurance products and services that address climate change-related risks, the Group ensures financial security and stability, effectively protecting clients' assets, lives and health. The Group reduces
its carbon footprint through energy renovation of its premises, careful energy management and solar power generation on its own facilities. Additionally, the Group increases the share of electricity supplied from
renewable sources , supports digitalisation to enable paperless operations and enhances remote service availability (from home).		 Actual positive
impact		 X X X X
The integration of environmental, social and governance (ESG) factors into insurance and financial products presents an opportunity for the Group to gain and maintain market share, driven by growing
stakeholder demand and interest in such products. By embedding sustainability factors into its services and products, the Group reduces sustainability risks. Through active ownership, it can influence change
across businesses, industries, regions and asset classes. Additionally, the Group identifies opportunities in providing expert advisory services in risk management.		 Opportunity X X X
Services and
products promoting		 Offering sustainable products and services also presents risks, including regulatory and legal risks, reputational risks related to potential greenwashing, and investment and insurance risks associated with
sensitive economic activities such as fossil fuels, weapons, tobacco, and gambling.		 Risk X X X
social and
environmental
benefits		 Through its insurance and financial services, the Group promotes the transition to a sustainable society and a climate-neutral circular economy. Sustainable (ESG) investments support socially beneficial and
environmentally sound projects, products, technologies and processes. The investment policy reduces exposure to economic activities with harmful impacts on the environment and society (e.g. coal mining,
thermal power plants, tobacco production and gambling). Insurance products are developed and updated to provide increased social and financial security (e.g. sickness, disability, unemployment insurance),
address increased sustainability risks (e.g. drought and flood insurance), and promote the transition to a low-carbon society (e.g. sustainable mobility and solar power insurance, as well as insurance for zero-net
technologies). The Group provides effective risk protection for companies involved in the production of energy from renewable sources (solar power plants, wind farms and others). Sustainable client behaviour is
also incentivised through the premium policy, such as rewarding safe and economical driving and offering a premium policy for agricultural insurance.		 Actual positive
impact		 X X X X
Ensuring quality working conditions contributes to high employee satisfaction and well-being, enhances the Group's competitive advantage, strengthens employer reputation, and ultimately drives higher
productivity and increased revenue.		 Opportunity
Employee Inadequate provision of quality working conditions may result in higher employee dissatisfaction and turnover, reduced productivity, the loss of key staff, challenges in retaining new recruits and failure to achieve
business objectives. Additionally, implementing measures to improve working conditions can lead to increased labour or labour-related costs.		 Risk X X
well-being Employees are provided with a safe, healthy, reliable and stimulating working environment. The Group fosters cooperation, trust, reliability and professional competence among employees, ensuring decent
salaries for all. Constructive engagement with employee representatives is pursued, exceeding legal requirements. A holistic and strategic approach to occupational safety and health is adopted, focusing on
identifying, reducing and managing risks associated with duties and the work environment. Initiatives aimed at enhancing employee satisfaction and well-being are implemented, including in-house psychosocial
support to address mental health. Modern, hybrid work arrangements are introduced to help employees achieve a better work-life balance.		 Potential
positive
impact		 X X
Search in report Diversity, inclusion, equal treatment and high employee competence contribute to greater satisfaction and productivity. A diverse workforce enables the exchange of skills, abilities, initiatives and ideas, fostering
innovation, responsiveness and engagement. This leads to potential financial opportunities and enhances the Triglav Group's reputation among investors, clients and society.		 Opportunity
Equal treatment
and opportunities		 Discrimination, harassment and unequal treatment of employees pose risks to reputation, increase staff turnover and may result in financial consequences from legal actions. Risk X X
for all An inclusive organisational culture fosters innovation and engagement, enabling the recruitment, development and retention of competent, engaged and satisfied employees. A culture of diversity, equality and
inclusion is actively promoted. Employees with different types of disabilities are employed, and there is zero tolerance for discrimination, sexual and other harassment, or workplace mobbing.		 Potential
positive
impact		 X X
IRO concentration in Timeframe
The Triglav Group's most material sustainability impacts, risks and opportunities (IROs) and their mapping across the value chain Impact,
risk or
opportunity		 Upstream Own activity Downstream Short-term Medium-term
Long-term
Community Prevention programmes, which are an important social aspect of the Group's sustainability impacts (and mandated by local legislation in the insurance industry), help reduce risks and the potential for claims and
minimise the amount of claims. In doing so, they enhance the visibility, trust and reputation of the Group's brand(s).		 Opportunity X X X
engagement
(a Triglav Group
specific topic)		 Responsibility to the communities where the Group operates is exercised through prevention activities, as well as sponsorship and donor partnerships. Prevention projects mainly focus on enhancing road,
fire and health safety, as well as protecting people, their property and the environment. Additionally, public infrastructure is being improved through collaborations with local communities, non-governmental
organisations and partners.		 Actual positive
impact		 X X
Transparent and
easy-to-understand		 Comprehensive and clear information, along with fair pricing of insurance and financial products, reduces policy/contract default and lapse risks. Unclear or ambiguous terms and conditions, along with
potentially misleading marketing practices, can undermine the Group's brand reputation, lead to legal disputes and reduce the number of clients (market share). They can also result in direct financial losses
due to regulatory fines.		 Risk X X X
products By providing transparent and clear information about products and services, the aim is to help clients make informed choices that take into account their needs and capabilities. Actual positive
impact		 X X X
Data privacy and Failure to adequately ensure the privacy of users and the security of their data can lead to a loss of client trust and harm the reputation of the Group, with an indirect financial impact. However, privacy
breaches and data loss can also have a direct financial impact through fines from regulators and litigation. The digitalisation of business processes increases the Group's direct vulnerability to disruptions and
business failures caused by cyber-attacks, as well as its dependence on information and communication technology (ICT) service providers.		 Risk X X X X
security The Group develops and offers insurance products to mitigate the risk of cyber-attacks, creating business opportunities. Opportunity X X
By raising awareness and providing cybersecurity advice, adverse events are reduced, while insurance coverage and security for clients are increased. Actual positive
impact		 X X X
Accessibility of
services and
financial literacy
(sector-specific
topic)
Business ethics		 Greater accessibility to insurance and financial services, along with enhanced financial literacy, fosters greater trust and strengthens the Group's reputation, thereby increasing opportunities for
business expansion.		 Opportunity X X
Access to services is ensured through a well-developed, diversified and accessible business network, serving less populated areas, economically less developed countries and vulnerable individuals (e.g. disabled,
hard of hearing, visually impaired). The Group provides both traditional face-to-face (physical, analogue) sales methods and digital (remote) business options to simplify procedures. Most points of sale in Slovenia
are equipped to accommodate people with various disabilities, with aids for the visually impaired and hearing-impaired clients available across all six regions. Financial literacy workshops and training courses are
conducted to help consumers identify financial risks and opportunities, empowering them to make informed decisions and safeguard their financial security at all stages of life.		 Actual positive
impact		 X X
Potential legal proceedings and fines by regulators for breaches of rules in areas such as insider trading, tax evasion, conflicts of interest, restriction of competition, SFDR disclosures, whistleblower protection,
anti-money laundering and anti-corruption, as well as unjustified claims payments to policyholders due to insurance fraud, can result in financial losses and negatively impact the Group's reputation.		 Risk X X
Insurance fraud and other unfair business practices may lead to higher premiums for policyholders and slower claims payouts. Potential
negative
impact		 X X X X
Effective and responsible management of supplier relationships and partnerships (e.g. proactive and open communication, enforcement of common minimum standards, settlement of commitments within
agreed deadlines) can impact the achievement of the Group's business objectives and reputation, as contractual partners are often the first point of contact with clients.		 Risk X X
Supplier
relationship		 Through its behaviour and actions, the contractual network can also contribute to the Group's sustainability commitments (e.g. reducing the Scope 3 carbon footprint).
management Collaboration with a wide range of partners ensures comprehensive service and high client satisfaction. Partners are engaged in a transparent and accountable manner, fostering mutual, long-term partnerships.
Suppliers are assessed against regulatory and expanded sustainability criteria to verify their compliance with employee rights, human rights and environmental legislation. Training, workshops and sales
motivation events are organised for partners in the external sales network.		 Actual positive
impact		 X X X

10.1 General disclosures

Sustainability Information

  1. Digital Operational Resilience Report

Accounting report

Appendix

Search in report

2024 Key Highlights

10.1 General disclosures

Accounting report

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Appendix

Explanation of negative materiality assessment34

Based on a double materiality assessment process, material topics were grouped according to those IROs that scored above the threshold for impact materiality, financial materiality or both. Less material topics refer to those where no IROs were identified or where IRO scores were below the defined thresholds.

  • Energy (E1): The sub-topic is not material for the Group, as the sector is not a major direct energy consumer, nor is energy among the most critical resources for the Group's activities.
  • Pollution (E2): The topic is not material for the Group, as its two core activities do not generate significant direct emissions to air, water or soil, nor do they use or produce microplastics. Pollution also has no direct impact on the Group's operations. The indirect impacts of the insurance and investment portfolio could not be quantified at this stage. As the methodology develops over the years, such impacts will also be evaluated and considered when assessing the materiality of sustainability topics.
  • Water and marine resources (E3): The Group's activities are not significant consumers of water, nor do they rely on water or marine resources to carry out their operations. Additionally, the Group has no impact on aquatic or marine ecosystemsThe indirect impacts of the insurance and investment portfolio could not be quantified at this stage. As the methodology develops over the years, such impacts will also be evaluated and considered when assessing the materiality of sustainability topics.
  • Biodiversity and ecosystems (E4): The Group has no significant direct impact on biodiversity or ecosystems. As a service provider, its premises are located in urban areas that are not designated as Natura 2000 sites or other protected nature conservation areas.The indirect impacts of the insurance and investment portfolio could not be quantified at this stage. As the methodology develops over the years, such impacts will also be evaluated and considered when assessing the materiality of sustainability topics.
  • Circular economy (E5): The Group does not directly utilise significant quantities of raw materials in its insurance and financial activities, nor does it generate substantial amounts of waste or contribute significantly to packaging waste related to its users The indirect impacts of the insurance and investment portfolio could not be quantified at this stage. As the methodology develops over the years, such impacts will also be evaluated and considered when assessing the materiality of sustainability topics.
  • Other work-related rights (S1): Companies are expected to conduct appropriate due diligence to prevent child and forced labour within their own operations and through their relationships with others (e.g. suppliers, clients). The Group operates in the financial sector and in the Adria region, where the risk of child or forced labour is negligible.
  • Workers in the value chain (S2): The Group's employees in the value chain work in the insurance and finance sector in the Adria region, where working conditions are adequately guaranteed by law and the risk of child or forced labour by contractors is negligible. Potential risks relate to ensuring gender diversity and the rights of people with disabilities, as well as potential discrimination based on sexual orientation and religious or political affiliation. The Group's suppliers are primarily local, though there is a potential risk in sourcing products made outside Europe.
  • Animal welfare (G1): The Animal welfare sub-topic is not material for the Group, as its activities do not directly affect animals, nor is its core business dependent on animal.

2024 Key Highlights

Accounting report

Appendix

10.2 Environmental aspects

10.2.1 Climate change adaptation and mitigation (E1)35

In line with the Group's Sustainable Development Policy and its strategic ambitions, the Group promotes the transition to a sustainable society and reduces its impact on climate change. Environmental impacts in business processes are minimised by reducing the Scope 1 and 2 carbon footprint. Key quantitative performance indicators by 2025:

  • Reduce the location-based carbon footprint (Scope 1 and 2) per employee by 15% compared to the 2019 base year;
  • Increase the share of electricity from renewable energy source to 75%;
  • Increase the share of electric and hybrid vehicles in the fleet to at least 30%.

The Group has not yet defined a detailed methodology or scenario for the described objectives, nor has it assessed their alignment with national, international or EU policies. Furthermore, the environmental targets are not yet fully based on scientifically sound evidence, but efforts are underway to explore alignment with recognised methodologies in the future. Relevant stakeholders are involved in the target-setting process, as outlined in the double materiality assessment process and in the stakeholder engagement table. The Group regularly monitors and reports on progress towards its climate change mitigation goals, maintaining a commitment to transparency and accountability in its sustainability efforts. In 2024, changes were made to the carbon footprint measurement methodology by including the "fugitive emissions" sub-category in Scope 1. For the remaining indicators, there were no changes to the targets or methodologies. In the coming reporting periods, the Group will focus on further improving transparency and gradually introducing methodological approaches to align with ESRS requirements.36

The Group has not yet adopted greenhouse gas emission reduction targets based on science-based targets aligned with limiting global warming to 1.5°C. A plan for adopting such targets is intended for the near future.37

In November 2024, as part of the approval of the Group's overall strategy to 2030, sustainability targets were adopted to reduce Scope 1 and 2 carbon footprint and to increase the degree of alignment of environmentally sustainable activities, as defined in the EU taxonomy Regulation, within asset management and insurance activities.

Reducing the carbon footprint is a strategic objective, supported by a plan for carbon footprint reduction by 2025, which is being implemented through the following activities:38

Improve energy efficiency of real properties and promote the sustainable use of energy, including energy renovation of buildings, modernising heating, cooling and air-conditioning systems, and install appliances and solar power plants that utilise renewable energy sources;

  • Advance green mobility by installing additional charging stations and increasing the share of electric and hybrid vehicles in the corporate fleet;
  • Optimise the usage of space available for own use to create a modern business environment and support new ways of working for employees, while ensuring a comfortable user experience for clients.
  • Raise employee awareness through training on reducing their carbon footprint, particularly in areas such as heating, cooling, lighting and the use of electrical appliances.

Solar panels are already generating green electricity at several buildings in Ljubljana, Murska Sobota, Nova Gorica and Trbovlje. Pictured is the office building on Verovškova Street in Ljubljana (photo: Porsche Slovenia).

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35 E1-2_01, E1.MDR-A_01-04, E1-4_01, E1-4_18, E1-4_22, E1.MDR-M_01 36 E1.MDR-T_01–13, E1-4_17 | 37 E1-1_01–02, E1-1_15 38 E1-1_03, E1-1_13–14, E1-3_01–02, E1-4_23

2024 Key Highlights

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Appendix

10.2.1.1 The Triglav Group's carbon footprint39

In 2024, the implementation of Scope 1 and Scope 2 carbon footprint reduction plans resulted in a 12% reduction in the Group's carbon footprint according to the location-based method (by 10% according to the market-based method) and a 35% reduction according to the location-based method compared to the base year (by 45% according to the market-based method). The share of electricity consumption from renewable sources reached 66% in 2024. Solar power plants began to operate on the roofs of five of the Company's office buildings in 2023 and cover around 10% of its annual electricity consumption. The share of electric and hybrid vehicles in the fleet grew from 11% to 17%.40

Scope 1 carbon footprint fell by 3% at Group level and by 8% compared to the base year. The most significant changes relate to the inclusion of fugitive emissions in the Scope 1 calculation and lower fuel consumption for company cars due to the higher share of electric and hybrid vehicles in the fleet.

Scope 2 carbon footprint according to the location-based method at Group level was 16% lower (14% according to the marketbased method), due to lower overall electricity consumption and an increase in the share of green electricity purchased by the Group (by 4 percentage points). The Company purchased almost all (99%) of the electricity used for its own premises from renewable energy providers.

The Triglav Group's carbon footprint by scope41

GHG emissions in tCO2e Index
Quantity by activity 2023 2025
target		 2019
base year		 2024/2023 2024/2025 2024/2019
Triglav Group
Scope 1.1 – Consumption of energy products from own capacities 760 688 688 810 110 110 94
Scope 1.2 – Fuel consumption of company cars 1,816 1,978 1,683 1,981 92 108 92
Scope 1 – Direct GHG emissions 2,576 2,667 2,372 2,790 97 109 92
Scope 2 – Indirect GHG emissions (location-based) 4,462 5,326 6,858 8,068 84 65 55
Scope 2 – Indirect GHG emissions (market-based) 2,988 3,494 6,243 7,345 86 48 41
Total Scope 1–2 GHG emissions (location-based) 7,038 7,992 9,230 10,859 88 76 65
Total Scope 1–2 GHG emissions (market-based) 5,564 6,160 8,615 10,135 90 65 55
Carbon footprint (Scope 1–2) per employee (location-based) 1.34 1.51 1.70 2.00 89 79 67
Carbon footprint (Scope 1–2) per employee (market-based) 1.06 1.16 91 0 0
Carbon footprint (Scope 1–2) per 1 million EUR net revenue (location-based) 5.05 5.61 90 0 0
Carbon footprint (Scope 1–2) per 1 million EUR net revenue (market-based) 3.99 4.32 92 0 0

* Data for the year 2023 has not been audited

The Zavarovalnica Triglav's carbon footprint by scope42

GHG emissions in tCO2e Index
Quantity by activity 2023 2025
target		 2019
base year		 2024/2023 2024/2025 2024/2019
Zavarovalnica Triglav
Scope 1.1 – Consumption of energy products from own capacities 387 297 393 130 0 99
Scope 1.2 – Fuel consumption of company cars 444 457 546 97 0 81
Scope 1 – Direct GHG emissions 832 754 938 110 0 89
Scope 2 – Indirect GHG emissions (location-based) 2,013 2,762 3,719 73 0 54
Scope 2 – Indirect GHG emissions (market-based) 925 1,103 3,676 84 0 25
Total Scope 1–2 GHG emissions (location-based) 2,845 3,516 4,657 81 0 61
Total Scope 1–2 GHG emissions (market-based) 1,756 1,857 4,615 95 0 38
Carbon footprint (Scope 1–2) per employee (location-based) 1.25 1.47 1.95 86 0 64
Carbon footprint (Scope 1–2) per employee (market-based) 0.77 0.78 100 0 0
Carbon footprint (Scope 1–2) per 1 million EUR net revenue (location-based) 3.03 3.50 87 0 0
Carbon footprint (Scope 1–2) per 1 million EUR net revenue (market-based) 1.87 1.85 101 0 0

* Data for the year 2023 has not been audited

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2024 Key Highlights

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Appendix

Methodology and assumptions for calculating the carbon footprint43

The Triglav Group's carbon footprint calculation is based on the requirements of the international GHG Protocol, but only covers Scope 1 and 2 emissions. The challenges in calculating Scope 3 emissions relate to systematic data collection and appropriate methodological approaches. The Group applied a 5% materiality threshold in the calculation of Scope 3 emissions, in line with GHG Protocol guidelines, meaning that only categories contributing more than 5% to the total carbon footprint were included in the reporting. Based on an internal materiality analysis, only category 3.15 – Financed emissions was included in Scope 3 for public reporting. For Zavarovalnica Triglav, GHG emissions from financing were calculated for the first time for 2024 in accordance with the PCAF standard. See Section Financed emissions for more information.

For setting targets to reduce the carbon footprint, 2019 was set as the base year, when the epidemic situation had not yet affected the total volume of greenhouse gas emissions (GHG)44. The carbon footprint calculation according to the location-based method includes all Group companies that are fully consolidated and have office space or more than one employee and therefore meet the materiality criterion.

Emission factors are sourced from internationally recognised databases, with the UK government's website (Department for Energy Security and Net Zero) serving as a primary source. BEIS provides publicly accessible data for calculating the carbon footprint of UK and international businesses.

This change in emission factors affects the calculation of Scope 2 GHG emissions, as the overall calculation for 2024 is based on updated data, ensuring greater consistency and alignment with the best available sources. In addition, the 2023 data were recalculated using the updated emission factors, resulting in minor adjustments to previously reported emissions. This update has improved reporting quality and ensured more accurate monitoring of the impact of electricity consumption on GHG emissions across different countries.

The websites or databases used as sources for emission factors and calculation assumptions for each GHG category are detailed in the internal report and are subject to verification.

The calculation of the Group's carbon footprint included the following scopes and categories of emissions.

  • Scope 1: Direct emissions from sources owned or controlled by the company (e.g. boilers, stoves, painting chambers, company vehicles) and fugitive emissions associated with air-conditioning units.
  • Scope 2: Indirect emissions resulting from purchased district heating and electricity.

For areas or premises for which consumption data are not available, estimates were made based on their share of the total size of the premises. Surcharges were applied to the quantity of energy products at Triglav, Upravljanje nepremičnin d.o.o., Zavarovalnica Triglav d.d. and subsidiaries renting office space from Triglav, Upravljanje nepremičnin d.o.o. These represent the proportion of properties used by the Company for which consumption data are unavailable. The applied surcharges by category are as follows:

  • Electricity consumption: 2% (rented properties without individual meters).
  • Energy consumption for heating: 10% (rented properties, partially holiday and partially owned properties where actual consumption data are not provided by the building administrator).

Triglav Osiguranje d.d., Zagreb does not have complete data on gas consumption, so an estimate based on received invoices is used. The carbon footprint data of Triglav, Zdravstvena zavarovalnica d.d. from 1 January to 1 October 2024 were included in the Company's data. The carbon footprint data of Triglav, Zdravstvena zavarovalnica d.d. from 1 January to 1 October 2024 were included in the Company's data.

Energy consumption

The Group consumed 8% less energy on heating, cooling, lighting and electrical and electronic equipment relative to 2023, while the Company reduced its energy consumption by 9%. Both the Group and the parent company saw the largest increases in the consumption of fuel oil, electricity and water for heating. However, the parent company recorded an increase in gas consumption. Efforts are continually made to raise awareness among employees regarding the rational use of energy, as well as the importance of limiting the temperature in offices and sales areas and domestic hot water temperature. When renovating premises, priority is given to highly energy-efficient equipment. Additionally, for new forcedair ventilation installations, integrated heat recovery systems are used. All new premises and advertising signs are fitted with LED lighting. When replacing lighting in basements and garages, lighting sensors are installed in addition to LED lights (see Section 8.5 Investment in own-use real property and equipment for further information).

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Appendix

Index
Triglav Group Količine 2024 2023* 2019
base year		 2024/2023 2024/2019
Heating water MWh 3,988 4,347 4,714 92 85
Fuel oil MWh 118 131 898 90 13
Gas MWh 2,756 2,971 2,581 93 107
Wood pellets MWh 182 185 124 98 147
Electricity MWh 9,420 10,342 11,270 91 84
Green electricity MWh 6,192 6,374 118 97 5,263
Share of green electricity (%) % 66% 62% 1% 107 6,297
Generated electricity MWh 16,464 17,976 19,587 92 84

Use of energy products at the Triglav Group and Zavarovalnica Triglav in MWh45

* Data for the year 2023 has not been audited

Index Zavarovalnica Triglav Količine 2024 2023* 2019 base year 2024/2023 2024/2019 Heating water MWh 3,374 3,692 4,044 91 83 Fuel oil MWh 26 100 234 26 11 Gas MWh 1,445 1,359 1,732 106 83 Wood pellets MWh 0 0 0 0 0 Electricity MWh 5,182 5,867 6.291 88 82 Green electricity MWh 5,113 5,806 118 88 4,346 Share of green electricity (%) % 99% 99% 2% 100 5,276 Generated electricity MWh 10,026 11,017 12,301 91 82

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

Total energy consumption related to own operations at the Triglav Group and Zavarovalnica Triglav46

Total energy consumption in MWh Index
Triglav Group 2024 2023 2024/2023
Total energy consumption from fossil sources 10,441 11,820 88
Total energy consumption from nuclear sources 39 0
Total energy consumption 6,913 6,559 105
– Fuel consumption for renewable sources including biomass, biofuels, biogas, hydrogen from renewable sources, etc. 182 185 98
– Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 6,192 6,374 97
– Consumption of self-generated non-fuel renewable energy 539 0
Total energy consumption 17,394 18,379 95
Zavarovalnica Triglav 2024 2023 2024/2023
Total energy consumption from fossil sources 4,991 5,259 95
Total energy consumption from nuclear sources 0 0 0
Total energy consumption from renewable sources 5,573 5,806 96
– Fuel consumption for renewable sources including biomass, biofuels, biogas, hydrogen from renewable sources, etc. 0 0 0
– Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 5,113 5,806 88
– Consumption of self-generated non-fuel renewable energy 459 0
Total energy consumption 10,564 11,065 95

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

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Financed emissions

In 2024, for the first time, the absolute financed greenhouse gas (GHG) emissions and carbon intensity (tCO2e/million EUR invested) of the Company's investment portfolio were calculated in line with the Partnership for Carbon Accounting Financials (PCAF) guidelines. While the aim is to cover as large a share of the portfolio as possible, limitations remain due to methodology development and data availability. Despite these limitations, efforts continue to gradually expand portfolio coverage over time.

Total financed GHG emissions amounted to 446,878 tCO2e in 2024 (431,357 tCO2e in 2023). The calculation of financed GHG emissions covered 73% of the carrying value of the investment portfolio, excluding investments covering insurance policies linked to external benchmarks. Carbon intensity stood at 236.7 tCO2e/million EUR invested, downy by 11% from the 2023 level (266.3 tCO2e/million EUR invested). For the calculation of GHG emissions, data reported by the companies were used whenever possible. In other cases, estimates from various providers were applied. The average rating of the data used is presented on a scale of 1 to 5, with 1 representing the highest quality.

The table below presents the carrying amount of the Company's investment portfolio, the absolute value of the financed GHG emissions, the carbon intensity, the data quality assessment and the absolute values of the financed GHG emissions by asset class in accordance with IFRS 9 and PCAF guidelines. Scope 3 financed emissions are shown separately, acknowledging the limitations and challenges associated with accurately determining this portion of the emissions.

Summary of the methodology for calculating financed GHG emissions

The methodology for calculating financed GHG emissions is based on PCAF guidelines. Two of the seven asset classes addressed by the current PCAF guidelines are included in the calculation. Financed GHG emissions are calculated using the following formula:

Financed GHG emissions = ∑ (Outstanding Amount / Enterprise Value Including Cash (EVIC) × Company GHG emissions)

Outstanding amount is the value of equity or debt stake in the recipient company. EVIC (Enterprise Value Including Cash) is the total value of the company, including equity, debt and cash. Company GHG emissions comprise its Scope 1 (direct emissions), Scope 2 (indirect emissions from energy) and Scope 3 (indirect emissions from the value chain) emissions. For the Government debt securities asset class, the EVIC in the denominator is appropriately proxied by the country's gross domestic product (GDP) adjusted for purchasing power parity (PPP).

Calculations are based on disclosed (i.e. reported) company and country data. When specific data are unavailable, modelled emissions from various providers are used. Missing data are addressed using the adjusted shares technique, whereby the shares are adjusted to ensure that the total share of units in the portfolio with available specific data represents the whole.

The coverage of financed emissions is being gradually expanded, with a focus on improving data quality and methodology sophistication. The objective is to continuously refine the methodology by including additional asset classes and enhancing data quality and availability for a more accurate calculation of emissions. These calculations enable greater transparency and tracking of investment impacts on GHG emissions.

2024 2023**
Carrying
amount
(EUR thousand)		 Carbon
intensity
(tCO2e/million
EUR invested)		 PCAF data
quality
assessment		 Financed
emissions
(tCO2e):
Scope 1 and 2		 Financed
emissions
(tCO2e):
Scope 3		 Financed
emissions
(tCO2e):
Total		 Carrying
amount
(EUR thousand)		 Carbon
intensity
(tCO2e/million
EUR invested)		 PCAF data
quality
assessment		 Financed
emissions
(tCO2e):
Scope 1 and 2		 Financed
emissions
(tCO2e):
Scope 3		 Financed
emissions
(tCO2e):
Total
Financial investments* 1,603,237 222.2 1.9 212,258 143,999 356,256 1,363.860 254.9 1.9 170,721 176,861 347,582
Government debt securities 905,935 173.7 1.9 157,333 157,333 640,675 176.1 1.8 112,813 - 112,813
Financial debt securities 354,512 60.5 2.4 3,798 17,648 21,446 397,534 61.1 2.4 5,047 19,228 24,276
Corporate debt securities 188,804 884.9 2.3 43,170 123,905 167,076 205,852 975.7 2.1 45,553 155,293 200,846
Compound debt securities 1,048 0.2 1.0 0 0 0 1,035 0.2 1.0 0 0 0
Collective investment undertakings 145,318 n/a n/a n/a n/a n/a 111,328 n/a n/a n/a n/a n/a
Shares 7,621 1,364.9 3.5 7,957 2,445 10,402 7,436 1,297.3 3.5 7,307 2,340 9,647
Financial contract assets 284,583 318.4 1.9 37,351 53,271 90,622 255,841 327.5 1.9 33,842 49,934 83,776
Government debt securities 98,607 175.0 1.9 17,259 - 17,259 78,027 175.2 2.2 13,670 - 13,670
Financial debt securities 50,643 32.2 2.1 240 1,390 1,630 57,285 31.8 2.1 304 1,517 1,820
Corporate debt securities 50,835 1,003.0 2.1 17,733 33,254 50,987 47,084 1,138.7 2.1 17,941 35,675 53,616
Shares 70,532 294.1 2.0 2,120 18,627 20,746 47,200 310.8 2.0 1,928 12,742 14,669
Collective investment undertakings 13,965 n/a n/a n/a n/a n/a 26,245 n/a n/a n/a n/a n/a
Total 1,887,820 236.7 1.9 249,609 197,269 446,878 1,619,702 266.3 1.9 204,563 226,794 431,357

Financed emissions of Zavarovalnica Triglav

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

* Excluding unit-linked investments. ** The figures for 2023 are unaudited.

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Appendix

10.2.1.2 Climate risk management47

The Company places particular emphasis on adequately addressing sustainability risks, with a specific focus on climate change risks that may impact its financial position.48 An analysis of climate change risk exposure is conducted annually as part of the own risk and solvency assessment (ORSA) process. This analysis is based on climate scenario analyses for both the insurance and investment portfolios. The scenarios are selected using the EIOPA49 template the calculations are tailored to the Company's risk profile.50 Assumptions for climate scenarios and financial statements are aligned in the calculations.51 These analyses support the identification and assessment of physical risks in the short, medium and long term52 and facilitate the adaptation of internal risk management processes.

The Company applies various risk analysis methods to assess and measure transition risks (CPRS sectors53, PACTA tool54, PCAF55, and qualitative analysis of the impact on assets and liabilities56) and physical risks (exposure to natural disasters, ND-GAIN Index57, INFORM Risk Indicator58, and qualitative analysis of the impact on assets and liabilities59).

More than 40 employees from Montenegro (Lovćen Osiguranje) participated in a reforestation drive on Vojnik Mountain.

Identified climate change risks and exposure periods – Description of the resilience analysis

In the context of the CPRS methodology, transition risk has been identified across all six categories of climate policy relevant sectors in both the insurance and investment portfolios. As part of the ORSA process, physical risks are assessed in relation to exposure to flooding, sea-level rise, extreme weather events, forest fires and drought.

Analyses indicate that the most significant damages in Slovenia (Central Europe) are likely to result from forest fires, flooding and hail. Although the INFORM risk indicator rates Slovenia's flood risk as medium, the country's high exposure to flooding makes its societal impact material.60

There are no significant changes in the materiality assessment of individual climate change risks compared to the previous reporting period.61 The primary short-term climate change risks (up to five years) are physical risks within the insurance portfolio, assessed as material, particularly for natural

catastrophe events involving floods62. These physical risks are expected to remain relevant in the medium and long term, with materiality recognised in specific insurance classes over an extended time horizon. Physical risks in the investment portfolio are considered immaterial; however, these risks are more challenging to assess due to potential indirect impacts. The direct impact on investments is anticipated to be primarily on real property, an area of limited exposure for the Company. For more information see Section 2.8.2.1 Non-life underwriting risks in the Accounting Report.63

Transition risks in the investment portfolio are currently assessed as immaterial.64 These risks are anticipated to become at most material in the medium term (5–10 years), with potential materiality to be more likely in the long term (beyond 10 years).65

Insurance and asset management activities, which account for over 97% of the Group's total revenue, are not significantly exposed to transition risks. Additionally, the core activities do not generate sales income from sectors such as fossil fuels, the manufacture of chemicals, controversial weapons, or growing of tobacco or manufacture of tobacco products.66

The gross written premium of Zavarovalnica Triglav's non-life segment for the year 2024 based on the customer's activities related to coal, oil, and gas (in EUR)67

Gross written premium Share
Oil-related activities 2,042,334 0.24%
Gas-related activities 98,672 0.01%
Coal-related activities 14,302,224 1.65%
Total 866,712,583 100.00%

* Exposures requiring allocation across other segments using the look-through method are captured; in the insurance portfolio, this pertains to inward reinsurance business.

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

47 E1.SBM-3_06, E1.IRO-1_01–16 | 48 E1.SBM-3_02 | 49 Consultation Paper on Application Guidance for Using Climate Change Scenarios in the ORSA, with Methods Aligned to NGFS Scenarios Based on the GHG Principle. | 50 E1.SBM-3_03, 04 | 51 E1.IRO-1_16 | 52 E1.IRO-1_05, E1.SBM-3_05 53 The Climate Policy Relevant Sectors (CPRS) methodology divides sectors into nine categories, six of which are exposed to potential transition risks (fossil fuel, infrastructure, energy-intensive, buildings, transportation and agriculture). The remaining three categories (finance, development and progress, and other) are only indirectly related to transition risks or are of minor relevance. | 54 The PACTA tool incorporates a comprehensive set of climate-related data to assess asset-related risks up to the level of the parent company. | 55 The PCAF (Partnership for Carbon Accounting Financials) methodology estimates a company's Scope 3 carbon footprint based on the proportion of the Scope 1, 2 and 3 carbon footprints of the entity, whether natural or legal, to which the company has direct exposure. | 56 Taking into account the findings from applying the CPRS method, the PCAF methodology and the PACTA tool, the materiality of transition risk is reviewed across different time horizons (short, medium and long term) from the perspective of the investment and insurance portfolios. | 57 The Notre Dame Global Adaptation Initiative (ND-GAIN) Index measures a country's current vulnerability to climate change and evaluates its readiness to utilise private and public sector investments for implementing adaptation measures. | 58 The European Commission's indicator evaluates countries based on the risks of humanitarian crises and disasters that may exceed their emergency response capacities. It comprises the following dimensions: risk and exposure, vulnerability, and lack of coping capacity. | 59 The materiality of physical risks is reviewed by time horizon (short, medium, long term) from the perspective of the investment and insurance portfolios, with a separate assessment of the exposure of insurance technical provisions and natural catastrophe events. | 60 According to internally defined materiality limits for exposure. | 61 SBM-3_11 | 62 E1.SBM-3_06 63 E1.SBM-3_01, SBM-3_09, SBM-3_08, E1-9_01, E1-9_02, E1-9_03 | 64 E1-9_14 | 65 SBM-3_06 | 66 ESRS 2 SBM-1_09-20, E1-9_29, E1-9_36 | 67 E1-9_30-35

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Appendix

10.2.1.3 Services and products promoting social and environmental benefits68

Presented below are the most important Group's services and activities that promote social and environmental benefits.

Comprehensive car insurance and roadside assistance insurance: These insurance products include all the necessary covers for electric and hybrid vehicles.

Micromobility insurance: Insurance for small electric means of transport, which is designed to promote the use of zero-emission means of transport.

Insurance for solar, wind, hydroelectric and biogas plants:

This insurance provides adequate insurance cover to all owners and users of energy from renewable sources.

Agricultural insurance: The focus is on insurance of small and medium-sized livestock farms, which are a significantly smaller burden on the environment than intensive animal farming. For Slovenia, two business decisions were made to limit the availability of crop insurance in the part related to intensive orchard insurance and prioritise participation in prevention programmes for sustainable food production in 2024. These programmes include initiatives such as irrigation systems to mitigate summer drought, sprinkler systems to guard against spring frost, anti-hail nets, greenhouses and tunnels.

Mutual funds and discretionary mandate services:

The Triglav Okoljska perspektiva fund focuses on investments in selected companies that develop, produce and offer products or services using environmentally less harmful technologies. As of 1 December 2024, all funds managed by Triglav Skladi have been restructured to promote environmental and social characteristics, aligning with Article 8 of the Regulation on sustainability-related disclosures (SFDR). In the area of discretionary mandates, the offering has been updated to include only products adhering to sustainability principles for new clients.

Life insurance: Includes insurance policies designed to enhance social and financial security, including sickness, disability and unemployment insurance. The Fleks unit-linked life insurance product, featuring mutual funds offered by Triglav Skladi, has been redesigned to align with social and environmental objectives. Unit-linked insurance products facilitating long-term savings, along with annuities providing stable income in old age, help older individuals achieve a better and more secure retirement while reducing the financial burden of long-term care or residing in a care home.

Health insurance and services: A comprehensive range of healthcare products and services is being developed, focusing on the needs of clients in different life circumstances (healthy, acutely ill or chronically ill). These insurance products primarily address health-related non-life risks, thus reducing the social risks for the population. Another key segment includes companies seeking increasingly integrated services in the area of employee healthcare (insurance, preventive check-ups, health promotion at the workplace and similar).

Asset management: Since 2021, in asset management, the Group has been increasing the share of green bonds issued to fund environmental projects, bonds issued to fund projects with a social impact (social bonds) and sustainable bonds intended to fund either green or social goals of issuers. The Group's goal by 2025 is to double the share of the aforementioned three bond categories compared to the 2020 base year.

In 2024, written premium from insurance products that promote social and environmental benefits decreased by 8%, while assets under management in funds and discretionary mandate assets that incorporate sustainability aspects increased by 74%. The value of these increased from EUR 1.14 billion in 2023 to EUR 1.98 billion. The share of bond investments with sustainable characteristics in debt securities rose to 12.9% (2023: 11.1%).

In North Macedonia, three companies and their employees were recognised for their outstanding contributions to sustainable mobility as part of the Triglav Green League initiative. Pictured is a representative of Komercijalna banka.

Written premium from the Triglav Group insurance products that promote social and environmental benefits, along with assets under management in funds and discretionary mandate assets that incorporate sustainability aspects

Written premium and assets under management
2024 2023 2024/2023
Crop insurance 12,727,873 17,738,167 72
Electric vehicle insurance 6,454,648 4,699,300 137
Micromobility insurance 523,458 527,467 99
Solar power plant insurance 2,997,657 1,816,700 165
Wind power plants insurance 175,116 168,423 104
Total gross written premium 22,878,752 24,950,057 92
Assets under management of funds that consider sustainability aspects 1,977,254,895 1,139,026,941 174

* Comprise assets from mutual funds (Triglav Aktivni, Triglav Evropa, Triglav Obvezniški, Triglav Okoljska perspektiva, Triglav Renta, Triglav Severna Amerika, Triglav Sklad denarnega trga EUR, Triglav Svetovni razviti trgi, Triglav Tehnologije prihodnosti, Triglav Top Brands, Triglav Trgi v razvoju, Triglav Zdravje in dobro počutje) and discretionary mandate assets that incorporate sustainability aspects.

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Bond investments of the Triglav Group with sustainable characteristics69

Sustainable debt securities Index Share in debt securities
31 Dec 2024 31 Dec 2023 2024/2023 31 Dec 2024 31 Dec 2023
Debt securities with social impact* 95,206,404 92,894,804 102 3.6% 3.9%
Debt securities green** 221,398,009 157,009,420 141 8.4% 6.7%
Debt securities sustainable*** 22,821,428 12,595,979 181 0.9% 0.5%
Total 339,425,841 262,500,203 129 12.9% 11.1%

* Bonds with a social impact are an instrument for funding social services.

** Green bonds are an instrument for funding environmental projects, the funds of which are intended for ecologically efficient products, technologies and processes, pollution prevention and control, sustainable management of natural resources, sustainable management of water resources, renewable energy use, energy efficiency and clean transport.

*** Sustainable bonds are an instrument for funding sustainability projects and a combination of green and social impact bonds. Funding is often conditional on achieving sustainability goals.

Pillars of the Triglav Group's responsible investment

Systematic and targeted monitoring
of investment decisions' negative
impacts on the environment and
society, using indicators:
▪
(E) Reducing greenhouse
gas emissions
(S) Promoting improvements in
▪
human rights (compliance with
the principles of the UN Global
Compact, OECD Guidelines for
Multinational Enterprises)
(G) Investing exclusively in
▪
companies that uphold
good governance practices
This is applicable to all IUP investment
funds and investment policies that meet
the criteria set out in Article 8 of the SFDR.		 ▪
Communication with issuers
(operations, financial
performance, reporting and
disclosure, ESG aspects, risks)
▪
Attendance, voting and
proposals for agenda items at
issuers' general meetings
Investment principles
 Active
 Pursuing long-term and sustainable growth

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Appendix

10.2.2 Disclosures under the EU Taxonomy Regulation

10.2.2.1 Key performance indicators related to investments70

In 2020, the European Union (EU) adopted Regulation (EU) 2020/852, known as the EU Taxonomy, which established a fundamental regulatory framework to promote sustainable investments. The regulation is designed to improve the transparency of sustainability disclosures for financial market participants and other companies.

The EU Taxonomy provides a standardised system for identifying environmentally sustainable activities. To this end, the EU has set six environmental objectives: (1) climate change mitigation, (2) climate change adaptation, (3) sustainable use and protection of water and marine resources, (4) transition to a circular economy, (5) pollution prevention and control, and (6) the protection and restoration of biodiversity and ecosystems.

The EU Taxonomy defines taxonomy-eligible and taxonomy-aligned economic activities. The technical assessment criteria first define taxonomy-eligible activities, i.e. the activities that can contribute positively to at least one EU environmental objective. If these activities are found, through further assessment based on specific technical criteria, to contribute significantly to at least one of these six objectives, while doing no significant harm to the remaining five objectives, and are carried out in compliance with minimum safeguards and meet the technical screening criteria, then such activities are considered to be taxonomy-aligned and thus environmentally sustainable activities.

The Group's investments have an impact on companies, economic activities and asset classes, with a particular focus on climate change. In response, it is adapting its business strategy and has set key performance indicators as part of its strategic ambitions for 2030 to guide its investment strategy. These include progressively reallocating capital towards sustainable investments and supporting the transition to a low-carbon economy:

  • Increase the share of green, sustainable and socially responsible (ESG) bonds to 15% of the bond portfolio.
  • Expand the range of investment funds meeting the criteria of Articles 8 and 9 of the SFDR.
  • Keep investment exposure to the Coal Exit List below 1%.
  • Increase the EU taxonomy alignment of investments.

When offering insurance products with an investment component, the Group considers sustainability criteria that enable clients to select investment options with sustainable characteristics. The expansion of the range of funds under Articles 8 and 9 of the SFDR provides clients with opportunities to invest in assets that promote environmental and/or social characteristics.

Through its strategic ambitions for 2030, the Group reaffirms its commitment to sustainable development, responsible investment and product management, creating added value for both clients and society.

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The proportion of the Group's investments that are directed at, or are associated with, funding of taxonomy-aligned activities in relation to total investments
Share Value in EUR
2024 2023 2024 2023
The weighted average value of all the investments of insurance or reinsurance undertakings that
are directed at funding, or are associated with taxonomy-aligned economic activities relative to
the value of total assets covered by the KPI, with following weights for investments in undertakings
per below:		 The weighted average value of all the investments of insurance or reinsurance undertakings that
are directed at funding, or are associated with taxonomy-aligned economic activities, with following
weights for investments in undertakings per below:
Turnover-based 1.51% 0.89% Turnover-based 33,441,108.32 18,510,977.04
Capital expenditures-based 2.47% 1.96% Capital expenditures-based 54,548,190.64 40,927,894.24
The percentage of assets covered by the KPI relative to total investments of insurance or
reinsurance undertakings (total AuM). Excluding investments in sovereign entities.		 57.00% 60.80% The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. 2,209,254,391.90 2,090,509,481.76
Share Value in EUR
2024 2023 2024 2023
The percentage of derivatives relative to total assets covered by the KPI. 0.00% The value in monetary amounts of derivatives. 19,810.22
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a
and 29a of Directive 2013/34/EU over total assets covered by the KPI:		 Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a
of Directive 2013/34/EU:
For non-financial undertakings 33.66% 26.08% For non-financial undertakings 743,710,273.14 545,160,245.51
For financial undertakings 23.87% 22.06% For financial undertakings 527,371,418.76 461,264,601.68
The proportion of exposures to financial and non-financial undertakings from non-EU countries not
subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:		 Value of exposures to financial and non-financial undertakings from non-EU countries not subject
to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings 26.88% 23.65% For non-financial undertakings 593,783,448.61 494,451,493.47
For financial undertakings 12.22% 14.92% For financial undertakings 269,905,273.76 311,929,756.54
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a
and 29a of Directive 2013/34/EU over total assets covered by the KPI:		 Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non-financial undertakings 12.39% 19.02% For non-financial undertakings 273,657,827.09 397,650,294.32
For financial undertakings 15.47% 32.84% For financial undertakings 341,839,027.02 686,434,340.25
The proportion of exposures to other counterparties over total assets covered by the KPI: 14.60% 0% Value of exposures to other counterparties: 322,656,035.66 0
The proportion of the insurance or reinsurance undertaking's investments other than investments
held in respect of life insurance contracts where the investment risk is borne by the policy holders,
that are directed at funding, or are associated with, taxonomy-aligned economic activities		 76.08% 68.1% Value of insurance or reinsurance undertaking's investments other than investments held in
respect of life insurance contracts where the investment risk is borne by the policy holders, that
are directed at funding, or are associated with, taxonomy-aligned economic activities		 1,680,871,821.54 1,422,918,003.17
The value of all the investments that are funding economic activities that are not taxonomy-eligible
relative to the value of total assets covered by the KPI:		 91.02% 95.68% Value of all the investments that are funding economic activities that are not taxonomy-eligible: 2,010,831,452.85 2,000,098,817
The value of all the investments that are funding taxonomy-eligible economic activities, but not
taxonomy-aligned relative to the value of total assets covered by the KPI:		 7.47% 2.37% Value of all the investments that are funding taxonomy-eligible economic activities, but not
taxonomy-aligned:		 164,981,830.73 49,482,770

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Share Value in EUR
Additional, complementary disclosures: breakdown of numerator of the KPI 2024 2023 2024 2023
The proportion of taxonomy-aligned exposures to financial and non-financial undertakings subject
to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:		 Value of taxonomy-aligned exposures to financial and non-financial undertakings subject to
Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: For non-financial undertakings:
Turnover-based 1.2% 0.74% Turnover-based 26,016,026.25 15,498,468.58
Capital expenditures-based 2.1% 1.78% Capital expenditures-based 46,453,162.12 37,165,840.90
For financial undertakings: For financial undertakings:
Turnover-based 0.3% 0.07% Turnover-based 7,425,082.06 1,566,333.41
Capital expenditures-based 0.4% 0.10% Capital expenditures-based 8,095,028.52 2,054,249.61
The proportion of the insurance or reinsurance undertaking's investments other than investments
held in respect of life insurance contracts where the investment risk is borne by the policy holders,
that are directed at funding, or are associated with, taxonomy-aligned economic activities:		 Value of insurance or reinsurance undertaking's investments other than investments held in
respect of life insurance contracts where the investment risk is borne by the policy holders, that
are directed at funding, or are associated with, taxonomy-aligned economic activities:
Turnover-based 1.3% 0.84% Turnover-based 22,670,495.68 9,363,293.36
Capital expenditures-based 2.1% 1.77% Capital expenditures-based 35,058,309.28 19,734,394.65
The proportion of taxonomy-aligned exposures to other counterparties in over total assets
covered by the KPI:		 Value of taxonomy-aligned exposures to other counterparties over total assets covered by the KPI:
Turnover-based 0.0% 0.0% Turnover-based 0.00 0.00
Capital expenditures-based 0.0% 0.0% Capital expenditures-based 0.00 0.00

* Data for the year 2023 has not been audited.

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Share Value in EUR
Taxonomy-aligned activities – provided 'do-not-significant-harm' (DNSH) and
social safeguards positive assessment:		 2024 2023 2024 2023
Climate change mitigation Climate change mitigation
Transitional activities: A % Transitional activities: A %
Turnover: 0.14% / Turnover: 3,054,664.53 /
CapEx: 0.18% / CapEx: 3,904,748.49 /
Enabling activities: B % Enabling activities: B %
Turnover: 0.57% 0.84% Turnover: 12,674,536.38 17,481,017.24
CapEx: 0.95% 1.91% CapEx: 21,061,440.88 39,994,633.71
Climate change adaptation Climate change adaptation
Enabling activities: B % Enabling activities: B %
Turnover: 0.02% 0.07% Turnover: 360,974.26 1,359,344.51
CapEx: 0.10% 0.11% CapEx: 2,178,203.68 2,223,837.01
The sustainable use and protection of water and marine resources The sustainable use and protection of water and marine resources
Enabling activities: B % Enabling activities: B %
Turnover: 0.00% / Turnover: 6,498.61 /
CapEx: 0.00% / CapEx: 20,978.06 /
The transition to a circular economy The transition to a circular economy
Enabling activities: B % Enabling activities: B %
Turnover: 0.02% / Turnover: 353,113.76 /
CapEx: 0.01% / CapEx: 117,704.59 /
Pollution prevention and control Pollution prevention and control
Enabling activities: B % Enabling activities: B %
Turnover: 0.00% / Turnover: 11.74 /
CapEx: 0.00% / CapEx: 9.80 /
The protection and restoration of biodiversity and ecosystems The protection and restoration of biodiversity and ecosystems
Enabling activities: B % Enabling activities: B %
Turnover: 0.00% / Turnover: 0 /
CapEx: 0.00% / CapEx: 0 /

* Data for the year 2023 has not been audited.

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Nuclear energy and fossil gas related activities

Row Nuclear energy related activities 31 Dec 2024
1. The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. YES
2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies.		 YES
3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.		 YES
Row Fossil gas related activities 31 Dec 2024
4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. YES
5. The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES
6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES

Taxonomy-aligned economic activities (denominator)

Revenue CapEx
(BPS + PPS) Climate change
mitigation		 Climate change
adaptation		 (BPS + PPS) Climate change
mitigation		 Climate change
adaptation
Row Economic activities Amount % Amount % Amount % Amount % Amount % Amount %
1. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI		 647,030.21 0.03 670,400.76 0.03 43,075.98 0.00 43,136.67 0.00
2. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI		 821,194.80 0.04 844,565.35 0.04 3,144,667.54 0.14 3,144,667.54 0.14
3. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI		 5,637,441.70 0.26 5,663,590.57 0.26 39.60 0.00 2,150,193.61 0.10 2,151,582.77 0.10
4. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI		 110,724.93 0.01 110,824.51 0.01 326,495.37 0.01 326,495.37 0.01
5. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI		 5,227,540.02 0.24 5,158,724.25 0.23 6,677,298.36 0.30 6,672,570.04 0.30 6,672,570.04 0.30
6. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI		 106,241.11 0.00 106,241.11 0.00 1,205,295.69 0.05 1,205,295.69 0.05
7. Amount and proportion of other taxonomy-aligned economic activities not referred
to in rows 1 to 6 above in the denominator of the applicable KPI		 51,924,212.18 2.35 51,895,236.21 2.35 17,090,633.46 0.77 61,498,358.79 2.78 61,449,746.45 2.78 17,104,749.19 0.77
8. Total applicable KPI 64,474,384.95 2.92 64,449,582.76 2.92 23,767,971.42 1.08 75,040,657.02 3.40 74,993,494.55 3.39 17,104,749.19 0.77

Business report Taxonomy-aligned economic activities (numerator)

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Revenue CapEx
(BPS + PPS) Climate change
mitigation		 Climate change
adaptation		 (BPS + PPS) Climate change
mitigation		 Climate change
adaptation
Row Economic activities Amount % Amount % Amount % Amount % Amount % Amount %
1. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI		 5,341.84 0.00 5,341.84 0.00 - - 9,576.71 0.00 10,034.56 0.00 - -
2. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI		 234,168.59 0.06 218,980.24 0.01 - - 1,412,598.60 0.06 1,412,851.76 0.06 - -
3. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI		 7,348,683.13 0.33 7,464,733.72 0.34 - - 4,742,697.36 0.21 4,745,592.85 0.21 - -
4. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI		 4,886.22 0.00 6,081.17 0.00 - - 44,827.49 0.00 45,715.71 0.00 - -
5. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI		 177,894.57 0.01 166,119.46 0.01 591,430.64 0.03 453,234.01 0.02 459,331.51 0.02 - -
6. Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI		 24,271.72 0.00 24,271.74 0.00 - - 35,000.98 0.00 35,003.00 0.00 3,983.17 0.00
7. Amount and proportion of other taxonomy-aligned economic activities not referred
to in rows 1 to 6 above in the numerator of the applicable KPI		 230,575,832.97 10.44 231,688,206.26 10.49 105,953,967.66 4.80 235,044,110.51 10.65 235,392,867.72 10.65 101,418,655.30 4.59
8. Total amount and proportion of taxonomy-aligned economic activities in the
numerator of the applicable KPI		 238,371,079.03 10.84 239,573,734.41 10.84 106,545,398.30 4.82 241,742,045.66 10.94 242,101,397.11 10.96 101,422,638.47 4.59

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Taxonomy-eligible but not taxonomy-aligned economic activities

Revenue CapEx
(BPS + PPS) Climate change
mitigation		 Climate change
adaptation		 (BPS + PPS) Climate change
mitigation		 Climate change
Row Economic activities Amount % Amount % Amount % Amount % Amount % Amount %
1. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 340,542.22 0.02 349,890.43 0.02 - - 97,488.56 0.00 97,488.56 0.00 - -
2. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 342,415.54 0.02 351,763.70 0.02 - - - - - - - -
3. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 689,539.55 0.03 699,803.47 0.03 - - 133,977.87 0.01 133,977.87 0.01 - -
4. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 4,175,951.19 0.19 4,272,614.61 0.19 - - 2,852,961.48 0.13 4,971,575.18 0.23 27,014.70 0.00
5. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 13,410,286.91 0.61 13,408,003.02 0.61 6,677,298.36 0.30 12,081,600.89 0.55 12,094,058.49 0.55 - -
6. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 709,250.20 0.03 712,028.52 0.03 - - 1,501,414.65 0.07 1,498,175.86 0.07 - -
7. Amount and proportion of other taxonomy-eligible but not taxonomy-aligned
economic activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI		 118,420,267.95 5.36 119,970,948.84 5.43 27,222,948.09 1.23 116,677,457.96 5.28 104,255,545.26 4.72 23,814,310.75 1.08
8. Total amount and proportion of taxonomy eligible but not taxonomy- aligned
economic activities in the denominator of the applicable KPI		 138,088,253.57 6.25 139,765,052.61 6.33 33,900,246.45 1.53 133,344,901.41 6.04 123,050,821.23 5.57 23,841,325.45 1.08

Taxonomy non-eligible economic activities

Revenue CapEx
Economic activities Amount % Amount %
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 80,323.53 0.00 - -
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 1,242,450.79 0.06 1,008,423.58 0.05
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 298,989.65 0.01 207,548.21 0.01
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 524,328.80 0.02 104,619.28 0.00
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 6,664,908.04 0.30 6,677,642.41 0.30
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI		 80,749.56 0.00 426.03 0.00
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 158,061,755.63 7.15 153,237,451.50 6.94
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI' 166,953,506.01 7.56 161,236,111.01 7.30

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The Group reports on the proportion of taxonomy-eligible assets, the proportion of taxonomy-aligned assets, and a breakdown of the key performance indicator per environmental objective. The framework for implementing the taxonomy is the calculation of statutory metrics, particularly the key performance indicator – the value and proportion of taxonomy-aligned investments. Currently, taxonomy indicators are not integrated in the Group's investment process.

All assets that finance economic activities fall under the taxonomy-alignment indicators (KPIs). These assets relate to the Group's portfolios covering obligations for non-life, life, pension and unit-linked insurance and the Company's own funds. They primarily include balance sheet items such as financial investments, financial contract assets and investment property, but exclude intangible assets, real property and own-use equipment. Total investments also exclude insurance and reinsurance contract assets and liabilities.

Exposures to central governments, central banks, supranational issuers, and additionally cash and cash equivalents are also excluded from total investments in accordance with Commission Delegated Regulation (EU) 2021/2178.

The proportion of total investments covered by the KPI as at 31 December 2024 was 56.56%. To ensure comparability with other information in the Annual Report, taxonomy metrics are calculated based on the carrying amounts of investments.

A company's economic activities are taxonomy-eligible if they are listed in Commission Delegated Regulation (EU) 2021/2139, which complements the EU Taxonomy Regulation. According to the EU Taxonomy Regulation, economic activities are taxonomy-aligned if they make a significant contribution to one or more environmental objectives without doing significant harm to any of the other objectives (the "do no significant harm" principle or DNSH), and in addition, they must be carried out in compliance with minimum safeguards and meet certain technical criteria.

    1. For the investment portfolio segment that represents investments in companies subject to the obligation to publish non-financial information (commitment to the requirements of Articles 19a and 29a of the Directive (2013/34/EU)), the proportion of taxonomy-aligned turnover and capital expenditure is disclosed. The Group uses information obtained from an external data provider (MSCI) to assess the degree of alignment of investments with the taxonomy. Only reported data are used (i.e. no estimated data are used).
    1. For investments in collective investment undertakings, a look-through approach is employed to calculate the taxonomy alignment with respect to the individual investments in those funds. The look-through approach is applied to the first level of investments in the fund. Collective investment undertakings where, despite sufficient efforts, a detailed analysis cannot be carried out are designated as "assets financing non-taxonomy-aligned economic activities".

In 2024, the Group followed the guidelines for disclosures of KPIs for investments by insurance undertakings detailed in Annex IX/X of Commission Delegated Regulation (EU) 2021/2178.

Restrictions on the calculation of indicators

The low percentage of alignment is due to the discrepancy between the investments captured in the numerator and denominator of the KPI. The numerator, unlike the denominator, does not include exposures to companies that are not subject to the requirements of Articles 19a and 29a of the Accounting Directive (2013/34/EU). The calculation is further constrained by the low data availability on the taxonomy alignment of companies within the investment portfolio. Data coverage is expected to improve as regulatory requirements are extended to more companies, increasing the relevance of the data on taxonomy alignment of investments. Investments for which insufficient information is available for categorisation (e.g. collective investment undertakings where the look-through approach cannot be implemented) will be grouped into exposures to other counterparties for the purpose of disaggregating the KPI denominator. The Company has not yet conducted an analysis of the eligibility and alignment of investment property with the EU taxonomy. As a result, this asset class is considered fully ineligible and non-aligned and is classified in the KPI denominator as exposures to other counterparties.

Part of the difference in the KPI compared to 2023 is due to the use of a different data source in compiling the data. The main methodological changes compared to last year include a more precise definition of the obligation to comply with Articles 19a and 29a of the Accounting Directive (2013/34/EU). This change accounts for a significant part of the changes in the breakdown of the KPI denominator.

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10.2.2.2 Key performance indicators related to underwriting activities

The Triglav Group is committed to developing preventive solutions related to climate risks, with the aim of reducing the adverse effects of extreme weather events. In the context of strategic ambitions for 2030, an important objective is to increase the share of the premium related to natural catastrophes as defined in the EU taxonomy, allowing better coverage of climate change risks. The Group's objective is to progressively increase the share of taxonomy-aligned product categories that are included in the climate change adaptation framework. The Group is committed to promoting innovative approaches to climate change adaptation and raising awareness among its clients about the importance of adaptation and risk

prevention. Through targeted communication initiatives, strategic partnerships and continuous dialogue with clients – both before and after extreme weather events – the Group aims to strengthen resilience and preparedness for climate risks. Increasing the proportion of damage repaired is also a priority, contributing to waste reduction and sustainable restoration of damaged buildings and assets. The Group actively promotes a wide range of insurance products for electric and hybrid vehicles and provides effective risk protection for companies engaged in renewable energy production, such as solar power plants, wind farms and other forms of sustainable energy production.

The underwriting KPI for non-life insurance undertakings

Substantial contribution to climate change adaptation Do no significant harm
Economic activities Absolute
premiums
2024		 Proportion of
premiums
2024		 Proportion of
premiums
2023*		 Climate change
mitigation		 Water and
marine resources		 Circular
economy		 Pollution Biodiversity and
ecosystems		 Minimum
safeguards
EUR % % YES/NO YES/NO YES/NO YES/NO YES/NO YES/NO
A.1. Non-life insurance and reinsurance underwriting
taxonomy-aligned activities (environmentally sustainable)		 67,600,000 5.13% 4.27% YES YES YES YES YES YES
A.1.1 Of which reinsured 10,600,000 0.80% 0.68% YES YES YES YES YES YES
A.1.2 Of which stemming from reinsurance activity 0 0.00% 0.00% YES YES YES YES YES YES
A.1.2.1 Of which reinsured (retrocession) 0 0.00% 0.00% YES YES YES YES YES YES
A.2 Non-life insurance and reinsurance underwriting taxonomy
eligible activities that are not environmentally sustainable
(taxonomy-non-aligned activities)		 26,600,000 2.02% 1.92%
B. Non-life insurance and reinsurance underwriting taxonomy-non
eligible activities		 1,224,469,030 92.86% 93.81%
Total (A.1 + A.2 + B) 1,318,669,030 100.00% 100.00%

* The figures for 2023 are unaudited. The denominator of the premium shares takes into account the Group's consolidated non-life insurance and reinsurance premium.

**The KPI was calculated based on gross written premiums (GWP).

Eligibility and alignment of non-life insurance

Through the EU taxonomy assessment, certain economic activities carried out by the Company during the reporting period were reviewed and classified as insurance services (other than life insurance), in accordance with Appendix I of Commission Delegated Regulation (EU) 2015/35. The assessment followed Delegated Regulations (EU) 2021/2139 and (EU) 2023/2485, which establish technical criteria for determining whether activities qualify as contributing substantially to climate change mitigation or adaptation. Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 and Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023, which amend Delegated Regulation (EU) 2021/2139, establish additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation or climate change adaptation, and for determining whether those activities cause no significant harm to any of the other environmental objectives. The assessment focused on the activities within the Company's business model that involve non-life insurance services associated with the insurance of climate-related hazards, as outlined in Appendix A.71

Following the European Commission guidelines, the Group has updated the methodology for calculating taxonomy-aligned premium in 2024. While previously all gross written premium from taxonomy-aligned products was fully taken into account, the new guidelines stipulate that only the part of the premium related to climate risks such as heavy precipitation, storms, drought, floods and similar extreme weather events is included in the calculation.

The premium distribution methods used comply with EU Taxonomy guidelines and are aligned with the Group's gross written premium to ensure data comparability. The method for calculating the proportion of the premium covering climate-related events is based on a claims database, enabling a more accurate assessment of climate risks' impact on business.

The EU taxonomy identifies non-life insurance activities that could potentially contribute to climate change adaptation and, therefore, are eligible under the Regulation if they meet specific conditions related to the underwriting of climate-related hazards. Based on the assessment, the Company identified taxonomy-eligible insurance subclasses.

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In this process, the materiality criterion was considered, and only major insurance subclasses that would significantly contribute to alignment were included. When identifying these subclasses, the gross written premium for each was considered, and only those with a portfolio size significant enough to impact climate change adaptation were assessed for taxonomy alignment. The Company conducted an analysis of direct non-life insurance activities.

  • Four taxonomy-eligible insurance activities were identified:
    1. Fire and other damage to property insurance
    1. Other motor insurance
    1. Marine, aviation and transport insurance
    1. Income protection insurance.

The taxonomy alignment calculation is based on assessing insurance premium against the technical screening criteria for significant contribution to climate change adaptation. The assessment aims to identify activities that contribute significantly to climate change adaptation, without causing significant harm to the climate change mitigation objective, and that meet the minimum safeguards and 'do no significant harm' (DNSH) criteria. The assessment of premium alignment with technical criteria considers the Company's total gross written premium, linked to specific perils. Additionally, the proportion of premium associated with particular peril classes is taken into account, Determined based on 10 years of claims experience. Claims with a specific cause or peril are considered. The alignment assessment found that the complex technical criteria and established processes for modelling, pricing, product design and innovative solutions allow alignment only for the Company's gross written premium. Appropriate processes will be implemented in Group companies to enable potential alignment with technical criteria in the future.

A leading role in modelling and pricing for climate risks

Zavarovalnica Triglav incorporates climate change risks into its insurance business across several key areas. Historical weather event data are used in underwriting, alongside climate change modelling to assess potential future risks. Tailored insurance products are developed to provide coverage for climate change impacts, such as floods, fires, droughts and extreme weather events, with premiums adjusted based on climate risk exposure. The Company promotes preventive measures, including raising client awareness of best practices to reduce risk exposure, and offers more favourable premiums for buildings designed to be more resilient to extreme weather events. Advanced technologies, including climate change modelling and analysis of extreme weather events, are used to assess these risks. Through these strategies, the Company ensures a comprehensive response to climate risks, enhancing the resilience of policyholders and businesses to climate change impacts.

The Company reviews historical claims experience, adjusting values to current levels. In addition to historical data, changes in the frequency and severity of natural catastrophes and projected future possibilities are assessed using models that simulate future events alongside internal assessments. Various scenarios for the total sum of natural catastrophe claims are applied.

The Company publicly discloses information on coverage provided to policyholders for protection against natural catastrophes, along with general terms and conditions and product information available on its website. This allows interested parties to easily access coverage details, compare them against their needs and requirements, and, in some cases, such as home insurance, check prices in advance. In cases of premium increases due to natural disaster risks, transparency is ensured through distributors, who personally inform policyholders of the reasons for the increase when renewing policies.

The Company is committed to encouraging measures that reduce climate change risks among its policyholders. To this end, climate risks are considered when setting premiums. Additionally, such risks may also be reflected in insurance terms and conditions, including deductibles or policy limits. In this way, the Company not only manages risks effectively, but also promotes responsible behaviour by its clients in adapting to the effects of climate change. Recognising the value of preventive action by policyholders, the Company integrates detailed and sophisticated modelling with the development of new software tools. For example, the Geographic Information System (GIS) defines areas with varying degrees of exposure to climate change-driven natural phenomena, adjusting premiums accordingly. To this end, preventive behaviour is encouraged through premium discounts, particularly in mass-market insurance, while specialised underwriters assess clients' climate change adaptability to negotiate more favourable insurance terms.

The Company applies tailored approaches to each type of insurance and policyholder. For property insurance against flood risks, it has introduced a GIS-based building classification system, developed using data from the official national meteorological system and its own long-term records of claims experience. This enables lower premiums for properties located in less flood-prone areas. A similar approach is used in agricultural production insurance, where hazard classes are regularly updated by area, peril and agricultural crop each season.

Product design

The Company encourages policyholders to implement preventive measures to mitigate risks associated with climate-related hazards. These measures include premium reductions or more favourable terms for policyholders who take protective actions, such as installing flood barriers, co-financing flood nets, enhancing flood protection, investing in fire protection systems and purchasing firefighting equipment.

The Company provides policyholders and the general public with guidance on preventive measures through its sales network, online resources and other media. This includes the Everything Will Be Alright portal, which features in-depth stories and articles on severe weather events such as floods, landslides, storms, hail, earthquakes and fires, as well as podcasts on floods, earthquakes and fires. These topics are explained together with experts, covering both the occurrence of such events and the preventive measures to be taken.

The Triglav Vreme app delivers timely push notifications on severe weather events and offers hail risk trend displays, as well as real-time monitoring of water flow and levels.

The Company informs its clients through its distribution network, advises and raises awareness among visitors to agricultural fairs and educates young people in agricultural schools. Preventive financial incentives are offered to policy-holding organisations, such as companies and fire brigades, to mitigate various risks covered by their policies. These incentives include co-financing for anti-hail nets, flood protection measures, investments in fire-fighting systems, and the purchase of fire-fighting equipment to support intervention and prevention efforts of fire brigades. Additionally, resources are allocated to awareness-raising programmes that educate the general public on preventive measures, such as flood, hail, lightning, fire and storm protection, as well as guidance on health prevention, braking distances and road weather conditions.

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Innovative solutions for insurance cover

Each year, the Company conducts a regular annual review of its insurance products, during which development departments assess the compliance of products with the needs of the target market and the appropriateness of their design. They also evaluate potential negative impacts on clients, including emerging risks, and review the suitability and control of distribution strategies. If any deviations are identified, corrective measures are implemented. Beyond the regular annual review, an extraordinary review may be conducted if circumstances arise that affect product suitability, such as significant changes in product content, shifts in the broader economic environment impacting sales viability or findings from supervisory inspections. This systematic approach enables proactive risk management, ensuring alignment with regulatory expectations and client needs.

Insurance products play a key role in addressing climate change, as insurers help businesses and individuals manage climate change risks and promote sustainable practices. This includes assessing climate change risks and developing adaptation strategies. The floods and storms in Slovenia during the summer of 2023, which caused record-high damage, underscored the importance of adequate insurance against natural catastrophes. The Company analysed relevant climate-related perils covered by its products to ensure they are tailored to client needs and expectations regarding climate risk coverage. As a result, a new functionality was developed within the i.triglav digital office.

At the i.triglav digital office, policyholders can check the risk exposure of their location, identifying the extent to which their property is at risk from natural hazards such as floods, earthquakes, hail and lightning. This serves as the basis for determining appropriate insurance cover. As part of its non-life insurance offerings, the Company provides business interruption insurance for weather-related risks, including windstorms, hail, floods and earthquakes. For individually owned solar power plants (solar power plant insurance), business interruption coverage is included under home insurance, protecting against destruction or damage caused by perils covered under the home insurance policy, such as storms, hail, floods, stormwater, landslides and frost. This type of coverage is also available for owners of solar power plants operated for profit.

As part of its activities, in April 2023, Zavarovalnica Triglav launched an automated campaign encouraging home insurance clients without flood cover to add it during the policy renewal month. This initiative aims to enhance client protection against the effects of extreme weather events and promote preventive action. Additionally, during the summer, the Company launched a campaign targeting clients who do not have home insurance with Zavarovalnica Triglav but hold other insurance policies. Through a series of emails, the campaign highlighted the risks of summer weather events such as storms, hail and floods. Through such targeted campaigns, the Company raises awareness of the importance of adequate protection and encourages timely action to mitigate climate change risks.

Data communication

The Company reports the number of natural catastrophe claims to the Slovenian Insurance Association annually and provides data to supervisory authorities upon request.

Comprehensive post-catastrophe services

Clients can report claims through multiple channels, with digital reporting becoming the predominant method. The Company maintains an extensive network of insurance agents who assist policyholders in the claims process. By publishing the necessary claim reporting forms and information on the claims settlement process, it ensures that policyholders have access to all relevant information at all times. Additionally, the claims reporting and settlement process is further streamlined through registration with the i.triglav digital office, which offers various functionalities to facilitate faster and more efficient claims handling.

'Do no significant harm' criterion

Reporting on the 'do no significant harm' (DNSH) criterion within the EU taxonomy includes an assessment of whether insurance premium related to climate change coverage negatively impact other environmental objectives, even when they contribute to one of them, such as climate change mitigation or adaptation. For an economic activity to be taxonomy-aligned, it must not harm the environmental objective of climate change mitigation. The Company verifies compliance with legal requirements using an internal classification of economic activities based on the statistical classification of economic activities in the European Community (the NACE classification). A thorough review of the portfolio is conducted, applying a conservative approach. For retail clients (insurance for natural persons), DNSH compliance is not a key requirement, as personal use (e.g. home heating or personal vehicles) is not considered harmful. The DNSH criteria are presented in tables within the document, where they are indicated as "Y" (yes) or "N" (no) for various environmental objectives.

The Company further verified alignment of premium to ensure compliance with the 'do no significant harm' (DNSH) and minimum safeguards requirements. The assessments in this report are based on Delegated Regulation (EU) 2021/2139, which establishes DNSH criteria for non-life insurance activities related to the EU taxonomy for climate change mitigation. The Company verified that the taxonomyaligned premium does not include insurance for the extraction, storage, transport or production of fossil fuels, and insurance of vehicles, property or other assets. The Company acknowledges that identifying whether a particular vehicle is used to transport fossil fuels is currently challenging, and this is disclosed as a data constraint. The importance of accuracy in reporting is recognised, and efforts are being made to improve the calculation methodology to enable better identification of vehicles used to transport fossil fuels in the coming year.

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Minimum safeguards

For final premium alignment, compliance with minimum safeguards is essential. These safeguards require that economic activities comply with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. Compliance with minimum safeguards is ensured at various levels and across different areas through the implementation of guidelines and processes.

As part of investment portfolio management, investment choices are carefully monitored to ensure adherence to the highest standards of responsible investment. Exposure to controversial weapons is very low (total exposure amounts to EUR 1,314) and immaterial, remaining only as part of a historic portfolio that is no longer actively managed. Investment strategies are continuously adapted towards sustainable guidelines, using available measures to gradually reduce such exposure. Accordingly, new and existing products do not include any investments related to controversial weapons.

Limitations on the calculation of indicator

The Triglav Group disclosed the taxonomy-aligned premium only for Zavarovalnica Triglav, as the insurance and reinsurance activities of its subsidiaries do not yet meet the technical screening criteria under the EU Taxonomy. Given the evolving regulatory environment, these limitations are recognised, and efforts are underway to enhance the compliance analysis for subsidiaries to ensure more accurate disclosures in future reports.

Currently, the link between individual insurance items and reinsurance premium is not fully established. A project aimed at improving data quality and gaining deeper insight into the relationship between direct and reinsurance business is in progress and expected to be completed in 2025. While this project will enhance reporting accuracy, the current assessment model is deemed appropriate based on available data and industry practices.

For large policyholders, where premium was individually determined and uncertainty existed regarding full compliance with all technical criteria, the entire premium was classified as eligible but not aligned.

The Triglav Group is an insurance and financial group engaged in insurance and asset management. Therefore, it also presents the average key performance indicators (KPIs) of both the investment and insurance segments, weighted by their respective revenue shares. The final overall key performance indicator consolidates both segments and is prepared in accordance with the requirements of Annex XI of the DDA.

Weighted average of key performance indicators for investment and insurance activities

KPI per business segment Revenue Proportion of total
group revenue (A)		 KPI turnover based
(B)		 KPI CapEx based (C) KPI turnover based weighted
(A*B)		 KPI CapEx based weighted
(A*C)
Asset management 51,454,450 3.69% 1.51% 2.47% 0.06% 0.09%
Insurance undertakings 1,341,754,919 96.31% 5.13% 5.13% 4.94% 4.94%
- non-life 1,186,349,643 85.15% 5.13% 5.13%
-health 55,139,550 3.96% 0.00%
- life 100,265,726 7.20% 0.00%
Total 1,393,209,369 100.00%
Average KPI 5.00% 5.03%

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10.3 Social aspects

10.3.1 Employee care (S1)

The Group focuses on ensuring the long-term well-being of its employees in the organisation. This includes considering employees' health and safety, improving the opportunities for their personal development and growth, while promoting a positive work environment. A care for health and well-being are identified as a key area, which is why it was included in the Company's strategic initiatives.

Strategic employee management guidelines and the recruitment policy (S1-1)72

  • The Group attracts, retains and develops top talent on an ongoing basis, continually improving the selection procedures. Standardised employee management processes are introduced within the Group by implementing minimum standards and transferring good practices.
  • A uniform organisational culture is being created based on constructive behaviour, teamwork, initiative, responsibility and cooperation. The employer brand is systematically redesigned.
  • Mobility within areas of work and among Group companies is promoted.
  • Induction mentoring is provided for new recruits, while development mentoring is provided for high-potential employees.
  • Development of key competences to achieve individual goals is encouraged. In 2024, particular focus was placed on the initiative competence.
  • Commitment to the further development of key and high-potential employees and leaders is maintained.
  • An annual ORVI survey is conducted to ensure employee satisfaction and engagement.
  • Hybrid forms of work are maintained to enable more flexibility, facilitate cooperation and improve work-life balance.

Policies are in place to address key employee-related issues, including health and safety at work, equality, inclusion, professional development and work-life balance. These policies are based on respect for human rights, employee dignity, and compliance with local and international legislation. They are designed to apply to all employees in the Group, with adaptations made for specific groups where necessary (e.g. part-time employees, temporary employees, employees in different regions). The following disclosures relate to fixed-term and permanent employees, as well as external contractors providing services under civil law contracts such as work and copyright work contracts.73

Triglav Group, they form the foundation for building strong relationships and effectively managing

challenges. Employees

external experts.

life and work

A decade of psychosocial support for employees Mental health care and psychosocial support are integral to a holistic approach to individual well-being. At the

Triglav Group companies provide various forms of psychosocial support for employees. Matija Pajer, a psychotherapist, and Ana Stražar, a psychologist, work closely with Zavarovalnica Triglav employees. The psychosocial support programme they design, develop and implement includes both counselling and educational components, incorporating innovative approaches in both areas. Among the most popular initiatives are Psychological Recharge Sessions (Psihološke okrepčevalnice), which teach relaxation and stress management techniques.

In the Open about the Hidden (Odkrito o skritem) podcast, individuals share their experiences of navigating significant life challenges.

have access to counselling, talks, training, coaching and workshops, delivered in collaboration with internal and To reduce stigma in this area, a series of activities continues to be implemented to align attitudes toward mental health with those toward physical health. Analysis of sick leave trends and the development of corrective measures have highlighted the need for greater focus on mental health. Tailored programmes addressing specific challenges have been designed and are implemented year-round with the support of internal and external experts.

Engagement with employees and their representatives (S1-2)74

The Triglav Group strengthens direct engagement with employees and their representatives. Employees' views, gathered through various ways, are considered in decision-making and the management of employee-related impacts. Engagement occurs through regular surveys, feedback, internal communication channels and representatives.75 The Company has two representative trade unions and a Works Council, which play a key role in shaping work organisation and employees' rights and obligations by providing opinions on changes to work-related rights and duties.

The employees exercise their management rights in line with the Worker Participation in Management Act and based on the agreement on worker participation in the management of Zavarovalnica Triglav. The organisational vitality survey (ORVI) is used as a tool to assess employee satisfaction and identify potential risks. The survey is conducted annually. Each company is required, according to the Minimum Standards, to review the survey reports and take appropriate action to improve the categories with lower scores.

Taking action on material impacts on employees (S1-4)76

Triglav.smo serves as a key programme for managing risks, addressing impacts and enhancing employee satisfaction at Zavarovalnica Triglav. It provides employees with a broad array of events and activities, focusing on health, professional development and overall well-being. Certain activities are also implemented by other Group companies. The programme encompasses the following areas:

  • Mental health care: Employees at Zavarovalnica Triglav have access to individual psychological counselling provided by two in-house experts as part of the Psychological Pulse (Psihološki utrip) group. They conducted 68 interviews with 52 employees in 2024. Psychosocial support is also provided independently by an external provider.
  • Facilitating work-life balance for Company employees: As a holder of the full Family-Friendly Enterprise Certificate,

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a constructive organisational culture is fostered through a wide range of 21 benefits and good practices. Best practices from the certificate are progressively implemented in other Group subsidiaries.

  • Support for children: Organised holiday camps for employees' children and end-of-year gifts for the youngest children.
  • Greeting the Seasons events: All Group employees are included in these events.
  • Corporate volunteering under the Together for a Safer Future initiative: 237 employees participated in organised volunteering actions. Volunteer teambuilding events were also organised by other Group companies.
  • Employees well-being outside working hours: Employees have opportunities to join sports and mountaineering clubs.

10.3.1.1 Employee composition

The Triglav Group had 5,204 employees as at 31 December 2024, down by 114 over the preceding year. The number of employees decreased due to the departure of employees following the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav and the liquidation of two companies: Triglav Savetovanje in Serbia and Triglav Savjetovanje in Croatia.

A total of 50.4% of all Group employees are employed in Slovenia, down by 1 percentage point year-on-year. The share of employees in Croatia increased the most (by 0.6 percentage point). The majority, i.e. 87.6%, of all employees worked in the insurance activity.

The proportion of employees with at least level VI education according to the Bologna Process study programmes has been steadily increasing, up by 1.1 percentage points in 2024.

Employees by Triglav Group market by gender as at 31 December 202477

Employees by country as of 31 Dec 2024 Women Share Men Share Total Share
Slovenia 1,405 27.0% 1,216 23.4% 2,621 50.4%
Serbia 526 10.1% 292 5.6% 818 15.7%
Bosnia and Herzegovina 278 5.3% 259 5.0% 537 10.3%
Croatia 331 6.4% 236 4.5% 567 10.9%
Montenegro 191 3.7% 187 3.6% 378 7.3%
North Macedonia 170 3.3% 113 2.2% 283 5.4%
Triglav Group 2,901 55.7% 2,303 44.3% 5,204 100.0%

Employees by Triglav Group activity as at 31 December 2024

A charitable element is incorporated into our team-building activities to promote volunteering and positively impact employee satisfaction and the workplace atmosphere. In 2024, 237 Triglav employees participated in volunteering campaigns.

Proportion of employees at the Triglav Group with at least level VI education according to the Bologna Process study programmes as at 31 December 2024

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Employees at the Triglav Group and Zavarovalnica Triglav by type of employment (part-time, full-time) as at 31 December 202478

Triglav Group Zavarovalnica Triglav
2024 2023* 2024 2023*
Women Men Women Men Women Men Women Men
Type of employment by working hours
Part-time 466 305 491 305 50 20 50 23
Full-time 2,435 1,998 2,435 2,087 1,114 1,039 1,102 1,068
Total 2,901 2,303 2,926 2,392 1,164 1,059 1,152 1,091
Type of employment agreement
Fixed-term 389 234 328 249 17 15 9 8
Permanent 2,512 2,069 2,598 2,143 1,147 1,044 1,143 1,083
Total 2,901 2,303 2,926 2,392 1,164 1,059 1,152 1,091

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

The turnover rate79 at Group level rose to 16.5% (2023: 12.0%) and to 10.2% at Zavarovalnica Triglav (2022: 5.5%). A total of 749 new employees were hired in 2024; most new hires were aged between 26 and 35 years. A total of 863 employees left; most leavers were aged over 56 years (due to retirement) and 41–45 years.

The most common reasons for leaving are retirement, failure to meet expectations in annual and quarterly interviews, and a desire to pursue career development in other work environments. However, turnover is largely driven by retirements due to an ageing workforce.

The Company does not employ any employees without a guaranteed minimum or fixed number of working hours.80 In 2024, 322 individuals worked for the Group under other contracts (copyright work contracts, contract for services, post-retirement contracts, student work), of whom 101 worked for the Company, in accordance with the legislation.81

Employee data refer to the total number of employees (head count) on the last day of the reporting year in and apply to the Group level. These data include all employees of the Company and its subsidiaries. Indicators per employee are calculated using the average number of employees during the year, determined as the average of the number of employees on the last day of the reporting year and the last day of the previous year. Metrics based on full-time equivalents are disclosed separately.82

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10.3.1.2 Employee training and development

Education and training are carefully planned and directed in consultation with leaders, who identify and address the needs of their colleagues. This area is governed by internal policies and programmes, including the Policy on the Management of Key High-Potential and Young High-Potential Employees, the Employee Development and Care Policy, and the Scholarship Policy.83 In-house training is available to employees of all ages and target groups, with special attention paid to leaders, sales staff, high-potential employees, in-house coaches and mentors. Employees from all Group companies and employees at external points of sale are included in in-house training.

Access to skills development is promoted in several ways: each employee has an annual interview with their supervisor to set objectives, assess key competences and identify necessary training for the upcoming year. Additionally, employees are invited to various mandatory and/or recommended training courses, professional meetings and similar events throughout the year. They also attend external training courses within the limits of available funding. Throughout the year, they have access to the LMS eCampus and EDU720 platforms EDU720, providing a variety of educational materials.84

The total number of functional training hours at the Company was slightly lower than in 2023 (index 91). Employees at Group level participated in an average of 31 hours (index 98), while Company employees participated in 46 hours on average. In terms of gender, men received slightly more training, with an average of 33 teaching hours in the Group and 47 hours in the Company.85

Average number of hours of functional training per employee in 2024

Triglav Group Zavarovalnica Triglav
Women 30 44
Men 33 47
Total 31 46

The Group training costs amounted to EUR 2.6 million, up by 4%.86 Employees are encouraged to continue their formal education. Work study was funded for 161 Group employees and scholarships were provided to 56 pupils and students. Obligatory work placement was provided to 80 pupils and students. A total of 9 young employees completed traineeship under the guidance of mentors. During the four-day Great Challenge (Hud izziv), held in cooperation with the Career Centre of the Faculty of Economics, students utilised artificial intelligence tools to transform some of our typical insurance roles into jobs of the future.

Training in insurance, sales, business communication, digitalisation and other relevant business topics was provided to employees. Zavarovalnica Triglav was awarded the TOP investor in education certificate for its systematic investment in employee education and training.

Some of the more extensive training programmes in 2024 include:87

  • The Customer Experience workshop for the Group's high-potential employees in cooperation with IEDC Bled.
  • Triglav International Business Academy (TIBA) for 29 young high-potential employees from eight Group companies.
  • Leadership Licence to strengthen leadership competences, the Leadership School programme for new leaders.
  • Conference for leaders attended by 307 leaders from Group companies.
  • Hansen Beck's Employee Management and Communication programme for B-1 level managers of subsidiaries in Slovenia, and the Meeting Business Challenges workshop for the management boards of these companies.
  • Training of in-house coaches for the Group's new sixth group of employees, alongside regular supervision meetings for existing coaches.
  • A total of 15 expert meetings at the Company and 24 at Group level in various areas of expertise.
  • The Triglav Ambassadors programme to exchange knowledge, skills and experience among the best insurance agents; continuation of the Sales Academy for sales staff across all sales channels of the Company's own sales network and their managers, as well as administrators of business partners at contracted points of sale.
  • The Triglav Guide presented to seven groups of new hires.
  • Refresher training to maintain a licence to conduct insurance agency business.

As part of the Great Challenge (Hud izziv) project, innovative and creative students utilised artificial intelligence tools to transform some of the traditional roles in the insurance industry.

The management-by-objectives and competency

development system is implemented by all Group insurance companies and some non-insurance. The share of employees included in this system at Group level in 2024 was 60.4% (2023: 63.2%), while all employees in the parent company are included. Employees set their objectives during an annual development interview with their superior, and companies monitor compliance with the minimum standards at least once a year. Due to the nature of their work, agents and heads of sales teams who are rewarded on the basis of sales targets are excluded from the management-byobjectives system.88

The development part of the annual interview is based on a competency model to define individual competency profiles and development activities. All Group companies use the DNLA tool for selecting and developing new employees.

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10.3.1.3 Occupational health and safety89

Occupational health and safety is managed through the Safety Statement and Risk Assessment. This document identifies all hazards and risks that employees may encounter in the course of their work and in the work environment. The statement includes measures to prevent and minimise these risks.90 Workplace risk assessments are regularly reviewed, with actions updated and employees and occupational medicine specialists directly involved.

Based on the risk assessment, employees are referred to periodic medical examinations, and every new hire is required to undergo a statutory medical examination before commencing employment. Participation in training and passing a test on fire safety and occupational health and safety are mandatory for employees. Safe working conditions at the parent company are defined in the collective agreement and the applicable legislation, while the subsidiaries adhere to the applicable local legislation.

In all Triglav Group companies, fresh fruit and healthy drinks are provided to employees as part of the Greetings to Summer, Autumn and Spring (Pozdrav poletju, jeseni in pomladi) campaigns.

The Company ensures occupational health and safety through a comprehensive and strategic approach. To control and minimise risks, several activities are implemented, including strict compliance with sectoral legislation (identification and control of hazards and harmful substances), health promotion at workplaces (the Triglav.smo – Protecting Health (Zavarujmo zdravje) programme), provision of personal protective equipment, appropriate working conditions, ergonomic design of workplaces, and awareness-raising and training for employees. Many of these activities are part of the Family-Friendly Enterprise certificate, further contributing to employee satisfaction and better health.91

In addition, the goal is to identify, mitigate and manage risks arising from duties and the work environment. Employees can report any perceived deficiencies in the health and safety management system to the relevant departments for remediation.

The occupational health and safety system involves all employees. The comprehensive approach from the parent company is being transferred to other Group companies by implementing common minimum standards to ensure health and safety at work and by strictly adhering to local legislation.92

Health promotion is planned and implemented in a targeted and deliberate manner, based on the most common health issues observed among employees, as well as anonymous occupational medicine reports.

Accidents at work

The number of accidents in the Group remains low, decreasing even further in 2024. A total of 10 accidents were recorded in the Group, with one occurring in the parent company. The number of lost work days also fell significantly due to fewer accidents and reduced absenteeism. The Group companies have not yet reported on any work-related ill health, nor have any work days been lost as a result.93

Injuries at work at the Triglav Group and Zavarovalnica Triglav94

2024 2023* 2022 Index
Triglav Group Number In % Number In % Number In % 2024/2023 2023/2022
At work 7 70.0 15 75.0 14 70.0 47 107
On business trips 3 30.0 5 25.0 6 30.0 60 83
Total 10 100.0 20 100.0 20 100.0 50 100
2024 2023* 2022 Index
Zavarovalnica Triglav Number In % Number In % Number In % 2024/2023 2023/2022
At work 0 0.0 2 33.3 1 25.0 0 200
On business trips 1 100.0 4 66.7 3 75.0 25 133
Total 1 100.0 6 100.0 4 100.0 17 150

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

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Index Triglav Group 2024 2023** 2024/2023 2023/2022 Lost work days due to work-related injuries 289 869 33 68 Lost time incident rate – LTIR* 0.96 1.88 51 100 Zavarovalnica Triglav 2024 2023** 2024/2023 2023/2022 Lost work days due to work-related injuries 5 238 2 41 Lost time incident rate – LTIR* 0.22 1.32 16 149

Lost work days and lost time incident rate due to injuries at work at the Triglav Group and Zavarovalnica Triglav95

* The number of work-related incidents/total number of hours of all employees x 1.000,000

** The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

Each injury which would render an employee unfit for work for more than three working days, each dangerous occurrence and each established occupational disease must be reported to the Labour Inspectorate of the Republic of Slovenia. The Group's absenteeism rate was at the same level as the previous year at 4.38%. The share of absenteeism for which sickness benefits are borne by the employer increased by 0.08 percentage points (medical leave up to 30 days), while the share of lost work days for which benefits are borne by other organisations decreased by 0.09 percentage points (medical leave longer than 30 days, sick nursing, accompanying a sick person). The absenteeism rate at the Company was also lower and stood at 4.95% (compared to 5.02% the year before). As a result, the share of work days lost borne by the employer rose by 0.12 percentage points, whereas the share of work days lost borne by the Health Insurance Institute of Slovenia decreased by 0.18 percentage points.

10.3.1.4 Equal treatment and opportunities for all

Respect for workers' rights and human rights are fundamental ethical principles defined in the Triglav Group Code. The Group consistently respects and protects the internationally recognised human rights and fundamental freedoms, which comply with the UN's goals and principles and originate from the Universal Declaration of Human Rights, and the fundamental rights as defined in the International Labour Organization's Declaration on Fundamental Principles and Rights at Work.96

The key policies that help manage equal opportunities include: the Triglav Group Code, which expressly prohibits discrimination based on race and ethnic origin, colour, gender, sexual orientation, gender identity, disability, age, religion, political opinion, or national or social origin; the Rules on the Protection of Workers' Dignity at Work, which provide detailed guidelines on identifying, preventing and remedying discrimination, harassment and mobbing in the workplace; the Rules on the Handling of Internal Fraud

and Violations of the Triglav Group Code; and, at the Company, the Diversity Policy. In addition to the Triglav Group Code, the Group companies operating outside Slovenia also comply with local legislation and the Company's minimum standards. Internal resolution mechanisms are used, and violations of the Code are reported directly to the Company's Compliance Office.97

Any reported or detected suspected violation is dealt with according to a predetermined procedure, in which professionalism, confidentiality and protection of the whistleblower are guaranteed. A designated confidant is available for employees to contact regarding allegations of human rights violations, harassment, discrimination or mobbing in their work or business environment. Employees can also report violations through other channels, including their supervisor, HR or a dedicated app for reporting suspected violations of the Code: https://prevare. triglav.eu/whistleblower/#/zt. In these cases, reporting can be made anonymously.98

The whistleblower is protected from any retaliatory action and is given an opportunity to informally resolve the issue. At the Company, the Committee for the Determination of Unwanted Conduct identifies violations, and the procedure is managed by a panel appointed by the Committee. The results are reported to the Compliance Office and the Risk Management Department. The Compliance Office also serves as the central function for maintaining records of human rights violations at Group level.99

In 2024, 11 employee reports of inadmissible conduct were received at Group level, six of which in the Company.100

Employee diversity101

The Diversity Policy considers diversity in experience, skills, gender and other factors that contribute to better performance and decision-making within the management and supervisory bodies. It is also being implemented in other areas to proactively promote gender equality.

The proportion of women among all employees increased both at the Company and in the Group, where it reached 55.7%. The proportion of women on the Management Board of Zavarovalnica Triglav was 20.0%, on the Supervisory Board it was 37.5%, and in the management and supervisory bodies of all Group companies, it stood at 26.4%.

The average age of employees in the Group remained stable at 45.1 years; at the parent company it was slightly lower a 46.6 years (2023: 46.9 years). The average age of Zavarovalnica Triglav's Management Board members was 48.8 years. In Slovenia, senior management is hired from the local community, as is the majority of senior management in markets outside Slovenia.

Gender representation by various categories at the Triglav Group and Zavarovalnica Triglav as at 31 December (%)102

Number Index Share (%)
Triglav Group 2024 2023* 2024/2023 2024 2023*
Number and share of women among employees 2,901 2,926 99 55.7 55.0
Number and share of women at the 1st managerial level below the Management Board 74 75 99 45.7 44.6
Number and share of women in management and supervisory bodies in the Triglav Group 34 40 85 26.4 26.7
Zavarovalnica Triglav 2024 2023* 2024/2023 2024 2023*
Number and share of women among employees 1,164 1,152 101 52.4 51.4
Number and share of women on the Management Board of Zavarovalnica Triglav 1 1 100 20.0 20.0
Number and share of women on the Supervisory Board of Zavarovalnica Triglav 3 2 150 37.5 25.0
Number and share of women at the 1st managerial level below the Management Board 9 8 113 30.0 27.6

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

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Employees at the Triglav Group by age and gender as at 31 December 2024103

2024 2023*
Number Share (%) Number Share (%)
Age groups
18 - 30 485 9.3 496 9.3
31 - 50 2,938 56.5 3,074 57.8
51 and over 1,781 34.2 1,748 32.9
Total 5,204 100.0 5,318 100.0
Gender
Men 2,901 55.7 2,926 55.0
Women 2,303 44.3 2,392 45.0
Total 5,204 100.0 5,318 100.0

* The figures for 2023 are unaudited.

The proportion of employees with disabilities was 2.3% in the Company and 1.5% at Group level.

The number and proportion of employees with disabilities*104

Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Number 79 71 52 60
Share 1.5% 1.3% 2.3% 2.7%

* The number of employees recognised by the state authorities as having a disability. The figures for 2023 are unaudited

The number and proportion of employees at the Triglav Group with disabilities by gender*

2023*
Number Share (%) Number Share (%)
47 59.5 40 56.3
32 40.5 31 43.7
79 100.0 71 100.0
2024

* The number of employees recognised by the state authorities as having a disability. The figures for 2023 are unaudited.

Employee satisfaction

The 2024 organisational vitality survey (ORVI) showed high levels of employee satisfaction and engagement. The ORVI index improved for both the Group and the Company, reaching 3.97 and 3.96, respectively. A total of 85% of employees from 15 Group companies participated (compared to 89% the previous year). Once again, employees rated their satisfaction highest in operational leadership, with the survey also indicating high engagement levels. They feel that supervisors are transparent, responsive to team needs and provide constructive feedback. Confidence in their objective assessments of colleagues' work has further increased. Most leaders willingly share knowledge and information, trust each other and prioritise collaboration over competition. They exchange even unconventional ideas with their teams and are not afraid to make mistakes. Employees are satisfied with job stability, working hours and training opportunities.

The challenge moving forward will be to maintain company loyalty and keep employees highly engaged. The Company will continue to implement programmes to strengthen these aspects and foster the desired organisational culture.

Benefits and opportunities for employees105

In all employee categories, activities and countries where the Group operates, the basic salary of men and women is equal. Benefits are the same for all employees, be it permanent full-time employees, fixed-term employees or part-time employees. All Triglav Group employees receive a fair salary, aligned with the applicable benchmarks in the countries where the Group operates. Salaries are ensured to comply with local legal requirements, collective agreements and relevant benchmarks for a decent standard of living.

Group employees gather for the traditional sports and entertainment event Our Day (Naš dan). Pictured is a team of colleagues from Croatia. Individual companies also organise regular team-building events.

The gender pay gap is defined as the ratio of average salaries between female and male employees, expressed as a percentage of the average salary of male employees. The calculation includes monthly salaries and other remuneration to employees, but excludes bonuses and reimbursements (such as meal allowances, commuting allowances and daily allowances). The difference between the average salary of male and female employees in 2024 was 27.7% at Group level and 26.0% at the Company.

Ratio of average salaries between male and female employees by job complexity at Zavarovalnica Triglav*

Employee group by job Gender pay gap
Senior management and employees in the most demanding jobs 1.90%
Employees in jobs requiring second-cycle education or equivalent 4.56%
Employees in jobs requiring first-cycle education or equivalent 3.53%
Employees in jobs requiring secondary technical, vocational or general education –3.62%
Insurance agents earning remuneration based on the premium they generate 16.62%
All employees 26.04%

* The figures are unaudited

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At the Company, this difference is strongly influenced by the variable remuneration structure in sales, where agent roles are predominantly held by men. In addition, a large number of the claims and underwriting staff come from technical backgrounds, and the digitalisation process also relies heavily on IT specialists. These roles, which are more frequently held by men, are also in short supply in the labour market. This results in a significant overall pay gap between male and female employees, while the gap for comparable jobs by job complexity is considerably smaller. The table below presents the gender pay gap by job complexity based on Zavarovalnica Triglav's job classification system, which considers four factors: knowledge and skills, effort, responsibility, and working conditions.

The Group has a gender-neutral remuneration policy and is committed to ensuring equal pay for equal work, recognising that gender pay inequality and achieving full pay equity is a broader societal challenge. Efforts are focused on improving data and analysis to better understand the pay gap and its underlying causes. Moving forward, efforts will continue to ensure that all employees – regardless of gender – have equal opportunities for career development and advancement and are placed in roles with appropriate remuneration.

The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees (excluding the highest-paid individual) was 14,84. It covers the remuneration of all employees, including basic salary, cash allowances, benefits in kind, long-term incentives and other bonuses (e.g. voluntary pension insurance, supplemental pension insurance). Amounts in foreign currencies are converted into euros.106

Additional benefits provided to employees include:

  • Supplemental pension insurance for 59% of employees of the Triglav Group and for 97% of employees of the parent company;
  • Favourable conditions for taking out complementary accident insurance for employees and their family members;
  • Complementary accident insurance for all business trips;
  • After one year of employment in the parent company, employees may opt for supplemental voluntary pension insurance and voluntary pension insurance;
  • The group insurance package Comprehensive Medical Care (Celostna zdravstvena oskrba – CZO), in which 71% of all employees of the Group and 84% of the parent company are included.

The Group companies operating outside Slovenia provide additional benefits to their employees such as supplemental voluntary pension insurance premium, discounts on medical examinations, the payment of accident insurance premium and discounts on other types of insurance.

Work-life balance

Circumstance and work requirements permitting, working hours can be adapted to the needs and wishes of employees. At Zavarovalnica Triglav and some Group companies, employees whose nature of work allows it may work from home, with their proportion increasing. At the end of 2024, 36% of Group employees and 67% of Company employees had this option available to them. All Group employees are entitled to family-related leave in accordance with applicable law, the relevant collective agreement and internal company regulations. Employees who are parents of first graders can take advantage of a day's paid leave on the first school day. Employees can take unpaid leave in certain cases and in agreement with their supervisors.107

10.3.2 Clients (S4)

The Company aims to cultivate long-term relationships with its clients, built on principles of fairness, trust and ongoing follow-up of client needs, to which it responds quickly and with quality, simplicity and transparency. Suggestions and comments from clients are professionally and fairly addressed not only to enhance business models and processes but also to develop new products, services and ecosystems. The client experience is improved through the development of digital solutions and modern communication channels.

Client relationships are reinforced through direct contact with insurance agents and financial advisors, ensuring clients are informed about insurance and financial products and their personal data and rights are protected. Products are developed in line with the procedures for their approval and testing before they are distributed. Each product must meet clients' needs and goals in its lifetime and correspond to their characteristics. The adequacy of distribution strategies is checked and tested on a regular basis, thereby maintaining client focus and product satisfaction. When any deviations are identified, the respective product and/or its distribution is appropriately adjusted. The sale of insurance and financial products is centrally managed through various sales channels and appropriate communication platforms, aiming to cover all target groups – from young people to pensioners – by using a multi-channel approach.108

Clients have access to insurance and financial products through a diverse range of sales channels, catering to all target groups, from young people to pensioners.

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10.3.2.1 Transparent and easy-to-understand products

Clients have easy access to all necessary information about the Company's products and services. Efforts are consistently made to ensure that insurance and other general terms and conditions are fair and transparent. Marketing strategies and campaigns are consistently implemented in compliance with statutory and other consumer protection regulations.

The Policy on Insurance Product Governance, Oversight and Distribution at Zavarovalnica Triglav establishes the rules and practices for product development, distribution, oversight and lifecycle management. This policy is designed to safeguard consumers and to identify and track the needs of the target market. Clients' needs and requirements serve as the primary guiding principle throughout the product development, testing, distribution and monitoring phases. This ensures fairer insurance protection, supports proper conflict-of-interest management, and ensures that clients' objectives, interests and characteristics are appropriately considered. The Group does not provide services that violate human rights. Particular attention is given to the equal treatment of policyholders, and any exclusions of the insurer's obligations in the general terms and conditions are based on actuarial calculations. For its insurance companies operating outside the EU, the Group ensures that their rules comply with local legislation.109

No proceedings for violations related to marketing communication were initiated against Zavarovalnica Triglav and its subsidiaries in 2024.110

Complaints handling mechanisms111

Clients have the right to express dissatisfaction with the Zavarovalnica Triglav conduct or decisions related to the insurance contract, personal data processing, the Company's approach or any other matter under the Rules on the Complaint Procedure at Zavarovalnica Triglav d.d., publicly available on the Company's website. Statistical processing and analysis of complaints are used to identify potential legal or operational risks of unfair business practices or other non-compliance, with appropriate remedial actions taken as necessary. Complaints may be submitted in writing or orally. Consumers also have the option to seek resolution through an out-of-court dispute mechanism, either by filing a complaint with the Mediation Centre of the Slovenian Insurance Association or by pursuing legal action. Additionally, clients may lodge complaints concerning compliance with the Insurance Code, good business practices or basic insurance profession standards with the Ombudsman of Good Business Practices in Insurance (Insurance Ombudsman) at the Slovenian Insurance Association.

Due to differences in legislation and regulatory requirements across various countries, internal acts governing complaints handling are tailored to the specific circumstances of each Group insurance company. At Triglav Group level, a common complaints handling framework, based on the Code, is in place. This framework ensures that complaints are addressed in a manner that respects the rights and obligations of the parties involved and safeguards the legitimate interests of the Group companies.

When handling consumer complaints, we treat data confidentially and process it exclusively for the purposes of the complaint procedure, in accordance with the Rules and the Personal Data Protection Act. However, we do not process anonymous consumer complaints. Anonymous complaints are forwarded to the relevant professional department.112

The Company is a signatory to the Commitment to Respect Human Rights in Business and adheres to the UN Guiding Principles on Business and Human Rights. A designated Human Rights Officer is responsible

for integrating respect for human rights into the Company's principles, conducting due diligence to identify key risk factors for human rights violations, raising awareness of human rights among employees and other stakeholders, and establishing an internal complaints handling mechanism.113

In 2024, the Company received 3,784 complaints, down by 3% compared to the previous year. Most complaints were related to non-life insurance claims (88%). The majority (85%) were substantive complaints, where clients expressed dissatisfaction with the handling of their claims. Three-quarters were unfounded, one-tenth were founded and one-seventh were partially founded. Apart from that, 44 compliments were received. In the Group members outside Slovenia, complaints are handled in accordance with complaint committee's rules; records are kept in the prescribed form, mostly digital. No significant human rights violations were reported or identified in relation to consumers within the Company or the Group.114

Client feedback is gathered through various channels, including surveys following claims reporting, complaint handling processes, responses on social networks and own websites, as well as direct input from agents in the field. A book of complaints and compliments is available at points of sale and is monitored on an ongoing basis. Resolutions are tracked using an efficient application. A report on the handling of complaints and compliments is prepared annually and presented to the Company's management. This report includes suggestions for possible improvements to the complaints handling procedure and related processes. The Company ensures that clients receive clear and transparent information about the complaints procedure. This is achieved through appropriate explanations in insurance documentation and information on the Company's website, where clients can find all relevant details on the complaints handling process. Records of complaints are maintained in the required format, primarily in electronic form.115

Client satisfaction116

Delivering an outstanding client experience remains a top priority. Client satisfaction is monitored using the Net Promoter Score (NPS) methodology, with an expanding number of companies conducting regular measurements.

In 2024, a high level of client satisfaction was maintained despite challenges such as market changes and price adjustments. The Group's NPS score was 70, while the Company's score stood at 66, just three points lower than the previous year. Client satisfaction with healthcare service providers is measured at the Zdravstvena točka health information office, with scores consistently exceeding target values.

Client experiences are actively tracked and analysed throughout the year. Negative feedback is reviewed daily, with competent departments engaging with clients to address concerns and improve satisfaction. Feedback from users of the Zdravstvena točka health information office services is regularly shared with partner healthcare providers. Excellence awards are granted to the highest-scoring healthcare providers, with special recognition for those achieving top results for five consecutive years.

In 2024, the client retention rate for the Group and the Company was 78.4% and 83.6%, respectively. Together with new clients acquired this year, their total number increased by 6% in the Group and 6.3% in the Company. The rate of complaints in relation to the number of claims was 0.9% at the Company (2023: 1.1%) and 1.2% at Group level.117

Since 2011, Triglav's brand image has been measured among the general population to assess the strength, awareness and perception of the Triglav brand and compare it with key competitors in each

109 S4-1_02, S4-1_03, S4-1_04, GRI 417-1, SASB: FN-IN-270a.4, FN-AC-270a.3| 110 GRI 417-2, 417-3, SASB: FN-IN-270a.1, FN-AC-270a.2 | 111 S4-3_02, S4-3_04, S4-3_05 S4-3_06, S4-3_09 112 S4-3_11, S4-3_12| 113 S4-1_06–07| 114 S4-4_11, S4-3_13| 115 S4-4_01, S4-4_02, S4-4_04, S4-1_05| 116 S4.MDR-T_01–04| 117 FN-IN-270a.3

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regional market. This has a significant influence on consumer purchasing intentions. The BSI index, which combines spontaneous brand recall with both aided and unaided brand recall, serves as a periodic strategic indicator of brand performance. See Section Brand development in 4.4 Development activities for more information.

Additionally, a client satisfaction report is prepared twice a year (for the January–June period and the January–December period). This report tracks policyholder complaints and compliments, and helps drive actions for improvement.

The Group has not yet defined a detailed methodology, including a baseline value and a baseline year, for the described client-related objectives to measure progress and assess their alignment with national, international and EU policies. Relevant stakeholders, including clients and their representatives, are involved in the target-setting process, as outlined in the context of the double materiality assessment process and in the stakeholder engagement table. No changes to the objectives or measurement methodologies have been introduced to date. In the coming reporting periods, the focus will be on further improving transparency and gradually introducing methodological approaches to allow for greater alignment with ESRS requirements.

10.3.2.2 Accessibility of services and financial literacy

A wide array of digital solutions and multiple sales channels is utilised to offer clients easily accessible services and streamline business transactions.118

Communication channels: The services of Zavarovalnica Triglav and Triglav Skladi are available via toll-free telephone numbers and email. Call centres also operate in Croatia, Serbia and North Macedonia. The TRIA virtual assistant was upgraded with artificial intelligence to offer clients a more natural, flexible and interactive communication experience.

  • The DRAJV mobile app: The app is used by approximately 65,000 drivers every month, who have driven a total of over 1.8 billion kilometres since its launch. By driving safely, users are rewarded with a discount when taking out motor vehicle insurance or insurance for young drivers and receive a discount on motorcycle insurance. The DRAJV map, which identifies hazardous road sections and aids in planning safer routes, was also presented, contributing to improved road safety.
  • The i.triglav digital office: The i.triglav digital office, also available as a mobile app, enables clients to manage most insurance-related matters and access the Company's other services. These include taking out or renewing insurance policies, reporting claims and tracking their status, ordering assistance (available only in the mobile app), and reviewing insurance details and benefits. The number of users of the i.triglav digital office increased by 20 %, now exceeding a quarter of a million of users. Clients can also use the platform to check the balance of their savings at Triglav Skladi and the balance of their life and pension insurance assets. In 2024, the Risk Assessment for Your Home tool was launched, offering a quick and personalised risk assessment for floods, fires, earthquakes and extreme weather events. The interactive interface provides recommendations for appropriate insurance solutions, encouraging preventive behaviour and fostering trust in the Company's services.
  • The Triglav Vreme mobile app: Provides access to reliable weather information and forecasts provided by the Slovenian Environment Agency, along with warnings about weather-related hazards.
  • Mobile appraisal units at CAT events: In the affected areas, mobile appraisal units are set up for a quick and prompt damage assessment. In 2024, five mobile appraisal units were set up after five major and small hailstorms in Slovenia, which carried out a total of over 4,000 appraisals of damaged vehicles.
  • Claims settlement: Users can submit a claim through a number of digital reporting channels (online reporting, mobile reporting, B2B, i.triglav, chatbot, etc.) with electronic signing of claims documents and reporting of assistance cases without a phone call. See Section Digital transformation in Section 4.4 Development activities for more information on new innovative solutions.
  • An app for inspection of the object insured: Remote inspection is possible using a client's smartphone, a drone and 360° cameras, as well as by capturing data using OCR technology. Damage reporting and inspection procedures are therefore simpler and faster.
  • The Triglav Skladi mobile app and Moj račun (My Account) online app for easy and transparent management of investors' investments and access to up-to-date information on financial markets and asset management.
  • Remote consultation with a specialist physician under the Medical Advice/Doctor 360 insurance product: Clients can consult with a specialist physician by telephone or video call.
  • Safe driving simulator at Triglav Lab: Designed for young drivers and those returning to driving, the driving simulator allows users to experience unexpected road hazards in a safe and controlled environment.

The DRAJV map, the first publicly available map of its kind in Slovenia, identifies dangerous road sections and helps plan safe routes, contributing to improving road safety.

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Access to Zavarovalnica Triglav's insurance services for people with disabilities119

At Zavarovalnica Triglav, services and premises are continuously adapted to the needs of people with disabilities, supporting their social inclusion:

  • A total of 75% of our points of sale offer independent access for people with various disabilities. In 2024, the relocation and redesign of the reception area on the ground floor improved accessibility for clients at the Tolmin and Odranci business units.
  • 100% of the points of sale are equipped with aids for partially sighted persons.
  • 100% of the regions' head offices are fitted with FM devices for hard-of-hearing persons.
  • Partnership with the Sports Federation for the Disabled of Slovenia and the Vozim Institute.

10.3.2.3 Data privacy and security

The IT strategy outlines the strategic objectives and actions related to information security, focusing on ICT systems, services, people and processes. The aim is to establish a robust cyber resilience framework that ensures technological security, optimal performance and rapid recovery from breaches and incidents, while maintaining the highest level of information security (confidentiality, integrity, authenticity and availability) of data. The Company is committed to IT standards and best practices in information security and personal data protection.

Privacy is governed by the Personal Data Protection Rules, along with more detailed rules for the lawful processing of data in specific business segments. Information security is governed by the Company's Overarching Information Security Policy, which defines the basic requirements for establishing, operating, monitoring, maintaining and improving the information security management system. Both the Personal Data Protection Rules and the Overarching Information Security Policy are part of the minimum standards for the Group's subsidiaries. The parent company provides advisory support, monitors implementation and even oversees the review of personal data processing agreements among Group members.120

At the Company, the Privacy Policy and related internal acts are regularly reviewed, along with the list of categories of processors and controllers and cookie policies. Special attention is given to reviewing the personal data protection information for individuals engaging in business with the Company through foreign entities. Before entering into agreements, the adequacy of personal data protection for business partners involved in data processing is assessed. The Company prioritises a comprehensive and documented ICT risk management framework, Which includes internal ICT protocols and tools to ensure the adequate protection of all IT and ICT assets, as well as relevant physical components and infrastructure.121

Attractive reflective clothing for youth safety

Young people are less likely to wear reflective clothing, accessories and safety helmets when riding bikes and e-scooters, increasing their risk of accidents. A survey of more than 800 e-scooter owners in Slovenia found that one-third had been involved in a road accident. These findings, from a study conducted by Zavarovalnica Triglav, provide valuable insights into visibility-related risks in traffic, supporting the development of effective solutions to

reduce accident rates.

While reflective clothing and accessories improve visibility and road safety, they often lack appeal among young people. To address this, the Company partnered with the Vozim Institute and Yootree Creative agency and invited the Department of Textile and Fashion Design at the Faculty of Natural Sciences and Engineering in Ljubljana to collaborate on a project.

Fashion design students approached the challenge with bold creativity, combining fresh design concepts with functional solutions. The result is an innovative, eye-catching and highly visible collection of reflective clothing and accessories designed for young urban mobility users.

Under the "Be bright, be safe" (Dejmo se videt) slogan, the initiative raises awareness about the importance of visibility in traffic, encouraging both young and older urban (micro)mobility users to prioritise their safety.

The Company processes requests from individuals to exercise their personal data protection rights, maintains records of data breaches and monitors the implementation of compliance measures across both the Company and the Group. All Group companies have designated personal data protection officers or coordinators.122

Across the Group, 43 substantiated reports of privacy and data breaches, including personal data loss, were recorded. Of these, 41 were substantiated complaints at the Company, with 26 arising from the conduct of insurance business in the Polish market.123 No material sanctions for non-compliance with personal data protection regulations were imposed on the Group. In response to identified breaches, the internal control system is being upgraded to prevent future incidents.

Data privacy and security are regularly communicated to employees, with ongoing training that must be periodically renewed. On average, each Company employee received 0.8 teaching hour of training on personal data protection.

10.3.3 Community engagement (S3)

The Group's strong commitment to corporate social responsibility is reflected in its projects, partnerships and donations, which align with its strategic guidelines. In parallel, the Group will promote environmental and social responsibility projects that contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).

Engagement with local communities is guided by in-house policies and international best practices. The rules on the implementation of prevention activities and the allocation of funds for prevention define the general principles and guidelines for the development of prevention activities, sources of funding and implementing bodies, the purpose and conditions for the use of the funds allocated to prevention, and the process for carrying out these activities.

The sponsorship and donor partnerships rules and the guidelines on sponsorship and donation management govern the

terms, conditions, methods and processes of sponsorship and donor partnerships. Practices adopted in the parent company are transferred to the Group subsidiaries by implementing minimum standards.124

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As outlined in the Triglav Group Code, the Group aims to play an active role in economic development through its business activities and improve the quality of life of employees and their families, the local community and society at large. In partnership with its stakeholders, the Group provides support to sports, cultural, educational, road safety, property safety, environmental and health activities.125

The achievement of this main objective is measured through reputation surveys. For each medium- to large-scale project or programme, the Group monitors its reach and contribution, taking into account the use of resources. This includes measuring media coverage, impact on local communities' behaviour, drivers, risk reduction (e.g. road accidents, safe kilometres travelled, education). The Group has not yet defined the detailed methodology and data sources for the described community-related objectives, nor assessed their alignment with national, international or EU policies. Relevant stakeholders are involved in the target-setting process, as outlined in the context of the double materiality assessment process and in the stakeholder engagement table. Implementation is regularly monitored and reviewed (including the baseline value and baseline year for measuring progress), though details are not publicly disclosed due to business confidentiality. In the coming reporting periods, the focus will be on further improving transparency and gradually introducing methodological approaches to allow for greater alignment with ESRS requirements.126

The volume of generated assets distributed among various stakeholders of the Group is shown by economic value distributed, which amounted to EUR 1.621,3 million in 2024.

Economic value distributed of the Triglav Group127

in EUR million
2024 2023 2024/2023
Economic value generated 1,712.9 1,642.4 104
Economic value distributed 1,621.3 1,682.9 96
Gross written premium and net reinsurance result 819.6 989.6 83
Expenses from financial assets 278.9 207.0 135
Other expenses 41.0 29.5 139
Operating expenses (excluding employee payments, allowances
and benefits and investments into the community)		 198.3 188.4 105
Employee payments, allowances and benefits 206.5 197.9 104
Dividend payments 39.7 56.8 70
Tax expense 27.6 4.8 576
Investments into the community
(prevention, donations, sponsorships)		 9.5 8.9 107
Economic value retained 91.7 –40.5

* The figures for 2023 are unaudited.

At the ATP tournament in Umag, the Triglavton competition was organised for children, promoting a healthy lifestyle and sporting values.

The Group's responsibility to the community is fulfilled primarily through investments in prevention, sponsorships and donations, as well as investments in infrastructure at national and local levels. Their content is defined based on:128

  • Sponsorships and donor partnerships and participation in investments in prevention;
  • The needs identified in local environments by the Group's companies and business units;
  • Direct contact with local communities;
  • Performance analyses, especially risks and claims experience, published data of specialised organisations and institutions, marketing and opinion surveys.

In 2024, the Group allocated a total of EUR 9.5 million for investment in prevention, sponsorships and donations, with 30% designated for investment in prevention, 61% for sponsorships and 9% for donations.129

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10.3.3.1 Investment in prevention

Prevention programmes, an important social aspect of insurance industry's sustainable impacts, reduce risks and are also prescribed by law. The bulk of funds is allocated to improving traffic, health and fire safety.

Prevention projects

Through prevention projects and activities, the Group works to prevent disasters, mitigate and manage the impact of damage across various areas. Efforts are focused on innovation, leveraging advanced technologies to enhance safety and risk awareness, and understanding generational needs and opportunities. Special emphasis is placed on mental health awareness through the #zVamiSmo initiative and on financial literacy through the Insure Our Future project.

Funds allocated to preventive activities of the Triglav Group and Zavarovalnica Triglav in EUR million*

Triglav Group Zavarovalnica Triglav

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

The share of the Triglav Group's and Zavarovalnica Triglav's funds for preventive activities by purpose

Triglav Group Zavarovalnica Triglav

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

As part of the For a Better Tomorrow (Za boljši jutri) campaign, support was given to the Sonček Cerebral Palsy Society from Gorenjska in purchasing a therapeutic wheelchair.

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The largest prevention projects of the Triglav Group in Slovenia in 2024 by area130
Health prevention Impact
Assistance in the event of a sudden cardiac arrest ƒ Co-financing or purchase of 24 defibrillators in local communities – 234 since 2014.
ƒ Co-financing of training in first aid.
Mental health ƒ A World Mental Health Day consultation on mental health activities for a quality and healthy life is carried out, along with the Open about the Hidden (Odkrito o skritem) podcasts, which address
issues affecting young people.
ƒ The #zVamiSmo initiative, which together with athletes raises awareness of the importance of mental health among the general public, is a collaboration between the Football Association of
Slovenia and the Triglav Group.
Traffic safety Impact
Long and safe mobility for drivers, partner: AMZS ƒ A total of 300 drivers aged 60+ participated in refresher rides with a driving instructor.
ƒ For the fourth consecutive year, the Refresher driving for senior drivers project has been providing older drivers across Slovenia with the opportunity to refresh their driving skills and knowledge.
More than 1,500 older drivers participated in the project.
ƒ A workshop on testing ADAS and a consultation on safe mobility for senior drivers were organised.
ƒ An interactive booklet featuring crosswords and educational content on road safety for senior drivers was published.
Partner: Zavod Reševalni pas (Rescue Lane Institute) ƒ 2,000 magnetic »Rescue lane« stickers for cars, promoting the creation of an emergency lane in traffic, were distributed across 55 Zavarovalnica Triglav locations in Slovenia.
Together for Road Safety project, partner: COPS system ƒ At Traffic black spots throughout Slovenia, 16 COPS@zebra systems were installed (almost 100 systems in Slovenia in total).
Together for Road Safety project, partners Sipronika and Zavod Vozim
(VOZIM, Institute for Innovative Education)		 ƒ A total of 118 speed display signs in local communities, at high-risk road sections and in the vicinity of schools and kindergartens were set up (within nine years), 12 of which in 2024.
Safe micromobility, partners: Vozim Institute, Institute of Civilisation and Culture,
Butan plin, Slovenian Traffic Safety Agency, National Education Institute of Slovenia		 ƒ As part of the Use Your Head, Don't Lose It (Ne bluzi, z glavo kruzi) initiative, the Be bright, be safe (Dejmo se videt) project for safer urban mobility among young people was developed in collaboration
with the Vozim Institute, the Faculty of Natural Sciences and Engineering at the University of Ljubljana and the Yootree agency. Fashion design students contributed to the creation of an innovative
collection of reflective clothing and visible accessories.
ƒ A total of 28 workshops at schools and 6 workshops at open events for the safe use of an e-scooter using a simulator.
ƒ Three major events as part of Crossroads of Micromobility (Ljubljana, Preska, Celje) were held to examine the behaviour in micromobility across all generations.
ƒ A survey of 1,200 e-bike and e-scooter users was conducted to assess risks and safety attitudes.
ƒ Two focus workshops at Triglav Lab explored the perception of micromobility users, risks, and solutions for safer micromobility.
ƒ Over the past 11 years, more than 10,000 primary school pupils have participated in cycling literacy activities focusing on sustainable mobility, traffic rules and active leisure. Since the start of the
project, more than 15 secure bicycles have been donated to participating schools, and over 23 mobile bike services have been organised for pupils' bicycles.
ƒ Participation in the M-bike project in Maribor to promote the transition to cycling, offering accessible bicycles for hire and ensuring safe cycling paths.
Interactive workshops for secondary school students »I still drive but I no longer walk«,
partners: Zavod Vozim (VOZIM, Institute for Innovative Education) and Sipronika		 ƒ At 108 workshops in person or online, 8.000 young people listened to personal stories of traffic accident victims and became acquainted with the DRAJV safe driving app.
ƒ 500 young people researched the influence of speed on impact load and braking distance at six specialised workshops and technical days.
Development of the DRAJV safe driving app ƒ 1.8 billion kilometres travelled with the DRAJV app since its launch.
ƒ 65,000 monthly active users.
ƒ Launch of the DRAJV map, the first publicly available online tool of its kind in Slovenia, which compiles data on the most hazardous road sections and the most frequent traffic challenges
encountered on Slovenian roads.
ƒ National awareness-raising event entitled Anatomy of Driving: Using DRAJV Data for Safer Routes.
Fire prevention Impact
Fire-fighting protective equipment, partners: fire brigades and associations ƒ Co-financing of the purchase of protective equipment, fire-fighting equipment and fire engines as well as investments in fire stations for 75 volunteer fire brigades and associations.
Fire safety awareness ƒ Partnership with the Slovenian Fire Protection Association (activation at the Safety and Prevention event).
ƒ Participation in the Heavy Rescue Slovenia event, demonstrating the operation and firefighting techniques for electric and alternative fuel trucks to our clients.
Protection of the natural environment Impact
Keeping mountain trails well-maintained and safe, partner: the Alpine Association
of Slovenia		 ƒ Support for the restoration of the Koželje trail along Kamniška Bistrica, winner of the Best Mountain Trail competition.
ƒ Extraordinary support for the restoration of the Topla Cave to Mala Peca trail in Koroška, which placed second in the Best Mountain Trail competition.
Playground renovation ƒ Co-financing the purchase of playground equipment for Kranj kindergartens, adapted for children with developmental difficulties.

In the context of the traditional New Year's prevention campaign For a Better Tomorrow (Za boljši jutri), 27 prevention projects were supported in local communities across Slovenia. Funds were allocated to firefighters, healthcare institutions, a care home, an education, rehabilitation and training centre, a cerebral palsy society and municipalities. Over the past ten years, more than 270 prevention projects have received our support.

3.7

2024

5.8

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High profile and comprehensive prevention projects of the Triglav Group in the markets outside Slovenia in 2024 by area

Traffic safety Impact
Preventive equipment and training for technical centre staff in
Montenegro		 Co-financing of protective equipment and staff training to reduce
risks and enhance road safety.
Protection of the natural environment Impact
Environmental drive marking the 20th anniversary of Slovenia's
membership in the European Union (part of the Slovenia Green
initiative, Association of Slovenian and Macedonian Entrepreneurs,
North Macedonia)		 Cleaning up local landfills.
Fire safety Impact
Protective and firefighting equipment, partners: various firefighting
organisations and companies, Bosnia and Herzegovina		 Co-financing of fire protection and firefighting equipment.

A unified set of guidelines governs sponsorship and donor partnerships to ensure alignment with the Company's values, principles and brand identity. The focus was on expanding sponsorship partnerships, particularly in sports, supporting the development of young athletes and promoting the benefits of a healthy lifestyle. The Triglav Group is a renowned partner of national sports associations, international

Triglav Group Zavarovalnica Triglav

2022

2.9

5.1

82.0%

84.6%

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

2023

3.2

Funds for donations of the Triglav Group and Zavarovalnica Triglav in EUR thousand*

Funds for sponsorships of the Triglav Group and Zavarovalnica Triglav in EUR million*

4.7

Triglav Group Zavarovalnica Triglav

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

Triglav Group Zavarovalnica Triglav

Health

Other projects

Sustainability projects

Education

Culture

Sports

0.0%

0.0%

1.0%

0.7%

1.0%

1.8%

3.0%

2.2%

* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into Zavarovalnica Triglav in 2024.

13.0%

10.8%

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Triglav Lab's activities

In 2024, the Triglav Lab development and demonstration centre hosted 130 events and workshops for various educational, preventive, business, product, awareness and brand-building purposes. These included thematic events related to home, mobility, health, financial/digital/insurance literacy, such as Prepared for the (Un)predictable: On the Earthquake Fault Trace, Safe with the Dog in the Mountains, When AI TRIA Speaks, Anatomy of Driving: Using DRAJV Data for Safer Routes, Let's Be Seen, among others. A total of 20 press conferences were hosted: Ski Association of Slovenia, Slovenian Football Association, Onkoman, Firecrackers, No Thanks! Triglav Lab further strengthened its role in development, testing and research through various activities, also aimed at obtaining user feedback and building contacts. Special emphasis was placed on young people, raising the profile of this target group and gaining their insights into the insurance industry. Nearly 1,000 young people participated in 40 events and workshops, including the Triglav Group's Top Experience, A Career after a Career and the Finance School for Young People in collaboration with Moje Finance magazine, DMS Student Section and others. Awareness-raising efforts in the area of psycho-physical fitness were reinforced with events such as Care for the Brain, Let's Talk about Alcohol and Digital Addiction. Additionally, five episodes of the Triglav Lab podcast Open about the Hidden, were recorded, addressing issues that concern young people. Through research and mobile Triglav Lab activities, field activations on the Crossroads of Micromobility (3) and quantitative and qualitative research on micromobility perceptions were conducted. With other simulators and the 3D avatar TRIO, the Company was present at 30 locations across Slovenia.

Everything Will Be Alright Institute

The scope of activities of Zavarovalnica Triglav's Everything Will Be Alright Institute (Zavod Vse bo v redu) includes corporate social responsibility initiatives to support and assist disadvantaged members of society, as well as preventive activities. The main projects in 2024 were:

Young Hopes – supporting young talents

The Young Hopes (Mladi upi) corporate social responsibility project provides support to young, talented individuals who are just starting to break through in their fields but face challenges securing professional or sponsorship funding to develop their potential. Through this project, the Company and its Everything Will Be Alright Institute financially support dedicated young people, providing tangible assistance in the development of their skills, ambitions and talents. The 12th Young Hopes open call was launched in 2024, receiving 57 applications from various fields: sport, para-sport, art and science. From the 57 applications, a panel of judges selected 12 outstanding young talents: five artists, six athletes and one scientist. The para-athlete was chosen through online public voting.

Following last year's extreme weather events, the Institute once again donated funds to support those affected by floods and storms through three organisations: Adra, Slovene Philanthropy and Slovenian Association of Friends of Youth.

In solidarity with those affected by violence, accidents and diseases caused by alcohol, the Everything Will Be Alright Institute participated in the 40 Days Alcohol-Free campaign for the ninth consecutive year, under the slogan "A Source of Joy and Unity". The campaign promotes healthy and sober lifestyles through activities for the general public. This year, the campaign brought visitors to the valley below the Ponce Mountains for the FIS Ski Jumping World Cup Finals, promoting responsible alcohol consumption through voluntary breathalyser tests.

The 12th open call for Young Hopes (Mladi upi) was held in 2024. From the 57 applications received, a panel of judges selected the 12 best young talents, with one chosen through an online public vote.

As part of its humanitarian and preventive efforts to mitigate loss events and address their consequences in Slovenia, the Institute signed a commitment to long-term cooperation in the Green Heart of Karst project. The Group joined the Karst reforestation project, which, in collaboration with the Slovenian Forest Service and other stakeholders, aims to restore the green image and reforest the recently fireravaged Karst region.

On 22 November 2024, over 50 Group employees, along with other volunteers from Slovenia and abroad, planted around 20,000 seedlings of native deciduous trees at the site of the catastrophic fire in the Fajtji Hill area in the municipality of Renče. The Everything Will Be Alright Institute contributed EUR 16,000 in total in 2022–2024 for the restoration of both the Karst forest and the entire ecosystem of one of the most biodiverse areas in Europe. These funds were allocated to the Slovenian Forest Service.

Information on corporate social responsibility partnerships:

Zavarovalnica Triglav d.d., Ljubljana Miklošičeva cesta 19, 1000 Ljubljana Email: [email protected]

2024 Key Highlights

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10.4 Governance aspects

The Group is aware that by acting legally and ethically and by respecting the fundamental principles of corporate integrity it maintains its safe operations, reputation and credibility, ensures the efficient management of the Group and strengthens the mutual cooperation and trust of its shareholders, investors, clients, suppliers, partners and other stakeholders. Efforts are made to establish appropriate, transparent, clear and up-to-date rules of conduct and procedures, including mechanisms to ensure legality and compliance.

10.4.1 Business ethics (G1)

The Group has established policies and internal acts to manage material impacts, risks and opportunities related to business conduct and corporate culture, including the Triglav Group Code, the Corruption Risk Management Policy, the Rules on the Handling of Internal Fraud and Violations of the Triglav Group Code, the Rules on the Protection of Workers' Dignity, the Agreement Management Policy, the Rules on Sponsorship and Donor Partnerships, the Rules on Procurement at Zavarovalnica Triglav, and others.

Zavarovalnica Triglav complies with the United Nations Global Compact Slovenia Declaration on Fair Business and is a signatory to the Commitment for implementing the principles of fair and ethical conduct and ensuring integrity and transparent business, the Slovenian Corporate Integrity Guidelines, and the Commitment to Respect Human Rights in Business in line with the National Action Plan of the Slovenian Ministry of Foreign and European Affairs. The Group is also in the process of transposing the guidelines of Directive (EU) 2019/1937 on the protection of whistleblowers. All Group companies comply with the legislation of the countries in which they operate, with the parent company's practices integrated into their operations through the Zavarovalnica Triglav's minimum standards for its subsidiaries.131

Corporate culture132

Corporate culture is defined by the Triglav Group Code (hereinafter: the Code), the Group's main ethical document and foundation. The Code establishes uniform business and ethical standards for companies, consolidating the standards of conduct used. It provides guidance for drafting other internal documents of Group companies, which must comply with its provisions. It applies to both governance bodies and all employees and is translated into all the languages in which the Group operates. The Code emphasises that engaged, highly professional and motivated employees are the foundation of sustainable development and accountability to all stakeholders.

The Compliance Office business function administers the Code, ensuring corporate culture development and continuous communication and employee training on the ethical standards adopted by the Company and the Group. It also manages the procedure dealing with Code violations and internal fraud in accordance with the Rules on the Handling of Internal Fraud and Violations of the Triglav Group Code, and prepares amendments and upgrades to the Code. It also prepares amendments and upgrades to the Code, participates in external activities related to ethical performance and development, and monitors compliance with the Insurance Code and the Company's other ethical commitments. The Compliance Office identifies, measures and assesses compliance and corporate culture risks by evaluating the risk of violations of the Code's core values and ethical principles. It also maintains a risk register and an internal control register. Compliance risk assessments are reported to the (operational) risk management body.

In line with the Compliance Policy, all employees receive regular training on compliance risk assessment, regulatory requirements and other commitments. The Compliance and Sustainable Development Committee addresses complex issues related to legislation and its implementation, positions of supervisory or other government/EU bodies, and matters concerning transparent and ethical business conduct. Compliance development and implementation across all Group companies are ensured through the preparation of minimum standards for Group subsidiaries, as well as through guidance, expert advice, internal documents, training materials, regular compliance monitoring in subsidiaries, risk assessments and targeted reviews. This approach standardises business processes, facilitates knowledge transfer, and promotes corporate culture exchange of know-how in good business practices across the Group's insurance and financial companies. An annual communication plan and training calendar are prepared for employee training.133

The Corruption Risk Management Policy places special emphasis on managing risks in high-exposure areas. In 2024, a survey on indications of corruption within the Triglav Group was conducted among employees at the government level, the insurance sector level, the individual company level, as well as at the level of business processes and groups of individuals working at or for the Company. The survey also assessed the adequacy of rules and controls for preventing corruption, the level of zero tolerance towards corruption and the detection of bribery cases. Results indicated that public procurement, purchasing, claims processing and settlement, and insurance sales through contracted points of sale are slightly more exposed to corruption risk.134

Procedures for identifying, managing and taking action in the event of unlawful conduct

The Rules on the Handling of Internal Fraud and Violations of the Triglav Group Code regulate the consideration, identification, reporting and investigation of unfair practices.135 At least one communication channel for reporting violations (an online form, a hotline for reporting fraud or the email address [email protected]) is established in all insurance and financial companies of the Group. In companies with 50 or more employees, a whistleblower may also report violations through a dedicated application, which is accessible at https://prevare.triglav.eu/whistleblower/#/zt. This platform ensures that the identity of the whistleblower is protected (including anonymous handling) and that high standards of security are applied.

Other identification mechanisms include the detection of key and control functions within audits, the exchange of information between them, the identification of non-compliant behaviour through audit findings, external bodies and the mandatory reporting of detected violations and operational loss events by organisational units to the Compliance Office and the Risk Management Department. The Compliance Office reports to relevant internal committees and departments, as well as the Management Board and the Supervisory Board, on a half-yearly basis about procedures for handling suspicions of corruption. In the event of a confirmed suspicion, it informs the Management Board and, where appropriate, the Supervisory Board.136

Measures are in place to protect whistleblowers from retaliation and to provide immediate assistance in cases of imminent threats to them or their families. These measures include the possibility of transfer to an equivalent post, free legal assistance, support in informing law enforcement authorities, security measures, and other necessary actions and sanctions against perpetrators. Additional safeguards for employees ensure the unconditional recognition of the right to report alleged unwanted conduct, ensuring that reports are handled appropriately, with due consideration and confidentiality, and preventing disclosure to unauthorised persons. Reports are addressed promptly through a fair hearing and procedure, with appropriate action taken against perpetrators of unwanted conduct, while false allegations are sanctioned.137

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In 2024, the Group dealt with 20 reports of alleged violations of the Code and 10 cases of reported suspected internal fraud, of which 13 Code violations and 9 instances of internal fraud were confirmed.

Insurance fraud management138

The insurance fraud management system is based on ethical conduct, rapid risk identification and fraud prevention. Advanced technological systems are used to detect suspected fraud, which are regularly updated to stay ahead of new forms of fraud. The effectiveness of internal control systems is also monitored and improved. Insurance fraud was confirmed in 1,119 cases out of 1,756 reported cases of suspected fraud in 2024. Employees are the first line of defence against fraud, which is why they undergo regular training on identifying suspected insurance fraud. In 2024, 42 hours of employee training on insurance fraud were conducted, along with participation in 14 hours of external events on the subject.

The panel discussion "Can an ethical environment prevent fraud?" explored activities and tools that organisations can implement in their business to reduce fraud risks. Pictured: Janja Skamlič, Head of Forensic and Business Integrity Services at EY.

Cooperation with relevant government bodies and other insurance companies in the fight against fraud is ensured as necessary.

Anti-corruption behaviour139

The Corruption Risk Management Policy sets a minimum standard of conduct in proceedings with an identified corruption risk for the Group companies. When entering into an agreement or contract, mandatory contractual clauses are included, such as an anti-corruption, a conflict of interest, restrictive covenants, fraud prevention, reputation, the protection of human rights, personal data, inside information and business secrets. The Anti-Corruption Policy defines the procedure for reporting and handling cases that may pose a corruption risk and requires employees to take an active role.

Prohibitions are enforced in areas such as making donations and sponsorships to public natural and legal persons, political parties (as also prohibited under the Political Parties Act) and religious organisations; receiving or giving gifts or hospitality of significant value or in inappropriate business situations; facilitating official procedures; and other relevant areas. The Company and Group members conduct lobbying activities strictly in accordance with legal requirements and the principle of transparency. In 2024, the Group did not engage any external registered lobbyists and therefore incurred no expenses for this purpose.140

Once adopted, policies are published on the intranet of Group companies or through other customary channels and are accessible to all employees. General terms and conditions for potential and existing business partners, which include provisions on the prevention and detection of corruption and bribery, are published on the website (https://www.triglav.eu/sl/trajnostni-razvoj/odnosi-z-dobavitelji) and, in relation to client business, through the common provisions of the general terms and conditions of insurance.141

The Company provides regular employee training and conducts communication programmes on anti-corruption. The table below outlines the 2024 training sessions on corruption-related topics, including: risk, identification and reporting, underwriting, whistleblower protection, public procurement, receiving and giving gifts and hospitality, sponsorships, donations, respect for human rights and related topics. Training is typically conducted annually, with a mandatory knowledge assessment at least once every three years, covering the following areas: definition of corruption, corruption risk management policies, third-party contracting procedures, procedures for handling suspected or identified corrupt practices, employee obligations regarding corrupt practices, protection of whistleblower identity and safeguards against retaliation, public procurement procedures, gifts, sponsorship and donations, respect for human rights and related topics. Training courses are available via the Group's E-Campus and include a post-training knowledge assessment.142

Training programmes cover all employees, including those in high-risk roles for corrupt practices, as well as other employees.143

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The number of training hours on corruption prevention144

Employees in
key functions of
the governance system		 Leaders Management Board
and Supervisory Board		 Other employees
Training coverage
Total required 90 250 10 1,880
Total implemented 111 481 12 4,879
Training method
In-person training 24 40 24
Computer-based training 87 441 12 4,855
Frequency
How often training is required twice yearly annually annually annually

In 2024, no confirmed cases of corruption were recorded in the Triglav Group, nor were any convictions, fines or other measures imposed for violations of anti-corruption legislation.145

Protection of competition

The Group is committed to respecting consumer rights and good business practices in its operations, product development and marketing. When choosing suppliers, it aims for transparency and respects the protected interests of its competitors, while avoiding the risk of violating regulations and the principles of fair competition. In the markets where the Group holds a dominant position, consumers are advised to be cautious when taking out insurance and business partners when entering into business relationships. One proceeding for alleged non-compliance with competition protection rules has been initiated against a Group subsidiary company, and it is still pending.

10.4.2 Supplier relationship management

Zavarovalnica Triglav's Procurement Policy applies to all relevant commodity groups. The procurement procedures above a certain amount are performed by the Strategic Sourcing Department, which is responsible for coordination and communication between the relevant departments in need of procurement and suppliers. The parent company's practices are already being implemented in certain areas in the companies of the Adria region, and further transfers and standardisation of procurement procedures are planned for 2025. The procurement policy for each commodity group defines the relevant characteristics of the supplier market and associated risks. Updates to the procurement policy are made based on identified risks, changes in the supplier market, regulatory developments or adjustments in the Company's strategy.

The Company's procurement procedures follow a well-defined selection process with built-in internal controls. Procurement procedure management is supported by a standardised software solution, which increases the transparency and reduces the operational risks of non-compliance with good business practices. The adopted general terms and conditions for suppliers require a sustainability assessment for all suppliers and contractual partners before an agreement is concluded. At a minimum, compliance with all legal requirements is mandatory.146

Important criteria in assessing supplier suitability include risks of corrupt practices, conflicts of interest and political exposure. When assessing business sustainability, the Company evaluates respect for human rights, the provision of a safe and healthy work environment for employees and other workers, compliance with Slovenian legislation, international human rights documents and environmental legislation requirements. Since 2023, suppliers' ESG maturity has also been quantitatively assessed using a scoring system. New suppliers undergo assessment in the selection process, while existing suppliers are reviewed annually. The aforementioned ESG criteria were applied to evaluate 1,047 suppliers and potential suppliers participating in the selection process. Whenever possible, preference is given to local sourcing (minimising international transport) and sustainable sourcing (recycled materials, renewables, reuse, refurbishment). These priorities are applied on a level playing field. Under the general terms and conditions, suppliers are required to report any changes that affect sustainability aspects or compliance with these terms.147

Insurance agents and sales staff also form a large part of the Group's sales network. In 2024, it included over 1,640 outsourcers. See Appendix 2. Business network of the Triglav Group for further information. The Group prioritises open communication with business partners and the development of genuine business relationships, in which consistently meeting contractual obligations and adhering to agreed payment practices are key. At the Group, the general terms and conditions (https://www.triglav.eu/sl/ trajnostni-razvoj/odnosi-z-dobavitelji#) and legally defined deadlines are followed when setting payment terms. This approach is applied uniformly, ensuring that all suppliers are treated equally, regardless of legal status or size. The standard payment period is 30 days, unless otherwise contractually agreed, which is often sector-specific. On average, invoices received have a payment period of 17 days.

In 2024, the Group paid invoices on average within 13 days of the contractual or statutory payment date. The calculation included 81,788 invoices received from suppliers. A total of 80% of invoices received from suppliers were paid in accordance with the contractual payment terms.148

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/ĚĞŶƚŝĨŝĐĂƚ ŝ Ž Ŷ Ž Ĩ Ɖ Ɖ ů ŝ Đ Ă ď ů Ğ ƌ ŝ ƚ Ğ

dŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚǁĂƐƉƌĞƉĂƌĞĚďLJƚŚĞ ŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞ 'ƌŽƵƉ ŝŶŽƌĚĞƌƚŽƐĂƚŝƐĨLJ ƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ70(c) and 70(č) ŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚ;' ͲϭͿŝŵƉůĞŵĞŶƚŝŶŐϮϵ;ĂͿ ŽĨƚŚĞhŝƌĞĐƚŝǀĞ ϮϬϭϯͬϯϰͬh͕ŝŶĐůƵĚŝŶŐ͗

  • ŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞ ƵƌŽƉĞĂŶ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚŝŶŐ ^ƚĂŶĚĂƌĚƐ ŝŶƚƌŽĚƵĐĞĚ ďLJ ŽŵŵŝƐƐŝŽŶ ĞůĞŐĂƚĞĚZĞŐƵůĂƚŝŽŶ;hͿϮϬϮϯͬϮϳϳϮŽĨϯϭ:ƵůLJϮϬϮϯƐƵƉƉůĞŵĞŶƚŝŶŐŝƌĞĐƚŝǀĞϮϬϭϯͬϯϰͬhŽĨƚŚĞ ƵƌŽƉĞĂŶ WĂƌůŝĂŵĞŶƚ ĂŶĚ ŽĨ ƚŚĞ ŽƵŶĐŝů ĂƐ ƌĞŐĂƌĚƐ ƐƵƐƚĂŝŶĂďŝůŝƚLJ ƌĞƉŽƌƚŝŶŐ ƐƚĂŶĚĂƌĚƐ("ESRS"), ŝŶĐůƵĚŝŶŐ ƚŚĂƚ ƚŚĞƉƌŽĐĞƐƐĐĂƌƌŝĞĚŽƵƚďLJ ƚŚĞ'ƌŽƵƉ ƚŽŝĚĞŶƚŝĨLJ ƚŚĞŝŶĨŽƌŵĂƚŝŽŶ ƌĞƉŽƌƚĞĚŝŶ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ Sustainability Report (the "Process") is in accordance with the description set out in ŶŽƚĞ'Double materiality assessment'͖
  • ŽŵƉůŝĂŶĐĞ ŽĨ ƚŚĞ ĚŝƐĐůŽƐƵƌĞƐ ŝŶ 'Disclosures under the EU Taxonomy Regulation' ŽĨ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ Sustainability Report with Article 8 of EU Regulation 2020/852 (the "Taxonomy Regulation")͖ĂŶĚ
  • ŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƚŽƉƌĞƉĂƌĞƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ ŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƌƚŝĐůĞϱϴŽĨ' ͲϭǁŚŝĐŚƌĞƋƵŝƌĞƐƚŚĞ'ƌŽƵƉ ƚŽƉƌĞƉĂƌĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚŝŶ ƐŝŶŐůĞĞůĞĐƚƌŽŶŝĐĨŽƌŵĂƚĂƐĚĞĨŝŶĞĚŝŶƌƚŝĐůĞϯŽĨŽŵŵŝƐƐŝŽŶĞůĞŐĂƚĞĚZĞŐƵůĂƚŝŽŶ;hͿϮϬϭϴͬϴϭϱ ŽĨϭϳĞĐĞŵďĞƌϮϬϭϴƐƵƉƉůĞŵĞŶƚŝŶŐŝƌĞĐƚŝǀĞϮϬϬϰͬϭϬϵͬŽĨƚŚĞƵƌŽƉĞĂŶWĂƌůŝĂŵĞŶƚĂŶĚŽĨ ƚŚĞŽƵŶĐŝůǁŝƚŚƌĞŐĂƌĚƚŽƌĞŐƵůĂƚŽƌLJƚĞĐŚŶŝĐĂůƐƚĂŶĚĂƌĚƐŽŶƚŚĞƐƉĞĐŝĨŝĐĂƚŝŽŶŽĨĂƐŝŶŐůĞĞůĞĐƚƌŽŶŝĐ reporting format (the "ESEF ZĞŐƵůĂƚŝŽŶΗͿ͘

/ Ŷ Ś Ğ ƌ Ğ Ŷ ƚ > ŝ ŵ ŝ ƚ Ă ƚ ŝ Ž Ŷ Ɛ ŝ Ŷ W ƌ Ğ Ɖ Ă ƌ ŝ Ŷ Ő ƚ Ś Ğ Ž Ŷ Ɛ Ž ů ŝ Ě Ă ƚ Ğ Ě ^ Ƶ Ɛ ƚ Ă ŝ Ŷ Ă ď ŝ ů ŝ ƚ LJ Z Ğ Ɖ Ž ƌ ƚ

ƌ ŝ Ă

dŚĞ ĐƌŝƚĞƌŝĂ͕ ŶĂƚƵƌĞ ŽĨ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚ͕ ĂŶĚ ĂďƐĞŶĐĞ ŽĨ ůŽŶŐ ͲƐƚĂŶĚŝŶŐĞƐƚĂďůŝƐŚĞĚ ĂƵƚŚŽƌŝƚĂƚŝǀĞŐƵŝĚĂŶĐĞ͕ƐƚĂŶĚĂƌĚĂƉƉůŝĐĂƚŝŽŶƐĂŶĚƌĞƉŽƌƚŝŶŐƉƌĂĐƚŝĐĞƐĂůůŽǁĨŽƌĚŝĨĨĞƌĞŶƚ͕ďƵƚĂĐĐĞƉƚĂďůĞ͕

Ime »Deloitte« se nanaša na družbo Deloitte Touche Tohmatsu Limited (DTTL«), njeno globalno mrežo družb članic in njihove povezane osebe (skupaj: »organizacija Deloitte«). Družba DTTL (imenovan tudi »Deloitte Global«) in vsaka od njenih družb članic in povezanih oseb so ločene in samostojne pravne osebe, ki ne morejo zavezovati druga druge v razmerju do tretjih oseb. DTTL in vsaka družba članica združenja dd>ŝŶƉŽǀĞnjĂŶŝƐƵďũĞŬƚŝŽĚŐŽǀĂƌũĂũŽůĞnjĂƐǀŽũĂƌĂǀŶĂŶũĂŝŶŽƉƵƐƚŝƚǀĞ͕ŶĞƉĂnjĂƌĂǀŶĂŶũĂŝŶŽƉƵƐƚŝƚǀĞ drugih članic. DTTL ne opravlja storitev za stranke. Več informacij je na voljo na ǁǁǁ͘ĚĞůŽŝƚƚĞ͘ĐŽŵͬĂďŽƵƚ͘

Deloitte je vodilni ponudnik storitev revidiranja in dajanja zagotovil, davčnega in pravnega svetovanja, poslovnega in finančnega svetovanja ter svetovanja na področju tveganj. Deloitte opravlja storitve za skoraj ϵϬ йƉŽĚũĞƚŝũƐƐĞnjŶĂŵĂ&ŽƌƚƵŶĞ'ůŽďĂůϱϬϬ® in za tisoče zasebnih podjetij. Naši zaposleni zagotavljajo merljive in trajne rezultate, ki prispevajo h krepitvi zaupanja ũĂǀŶŽƐƚŝǀŬĂƉŝƚĂůƐŬĞƚƌŐĞ͕ƉŽŵĂŐĂũŽƐƚƌĂŶŬĂŵƉƌŝ njihovem preoblikovanju in doseganju uspehov, ter usmerjajo pot do močnejšega gospodarstva, pravičnejše družbe in trajnostnega sveta. Deloitte, ki ima več kot 175 Ͳletno zgodovino, deluje v več kot 150 državah ŝŶŽnjĞŵůũŝŚ͘EĂǁǁǁ͘ĚĞůŽŝƚƚĞ͘ĐŽŵ lahko preberete več o tem, kako približno 457.000 Deloittovih strokovnjakov po vsem svetu dosega rezultate, ki štejejo.

s^ůŽǀĞŶŝũŝƐƚŽƌŝƚǀĞnjĂŐŽƚĂǀůũĂƚĂĞůŽŝƚƚĞƌĞǀŝnjŝũĂĚ͘Ž͘ŽŝŶĞůŽŝƚƚĞƐǀĞƚŽǀĂŶũĞĚ͘Ž͘Ž͘;ƉŽĚƐŬƵƉŶŝŵŝŵĞŶŽŵͩĞůŽŝƚƚĞ^ůŽǀĞŶŝja«), članici družbe Deloitte Central Europe Holdings Limited. Deloitte Slovenija sodi med vodilne družbe za strokovne storitve v Sloveniji in opravlja storitve revidiranja in dajanja zagotovil, davčnega, poslovnega in finančnega svetovanja, svetovanja na področju tveganj in sorodne storitve, ki jih zagotavlja več kot 150 domačih in tujih strokovnjakov.

ĞůŽŝƚƚĞƌĞǀŝnjŝũĂĚ͘Ž͘Ž͘ Ͳ Družba vpisana pri Okrožnem sodišču v Ljubljani Ͳ Matična številka: 1647105 – ID št. za DDV: SI62560085 Ͳ KƐŶŽǀŶŝŬĂƉŝƚĂů͗ϳϰ͘Ϯϭϰ͕ϯϬhZ͘ ϲϴϮϭϳϮϯϯϲϱϬϴϲϭ&Ϭ&ϲϭϵϵϲϯ

͘

ΞϮϬϮ ϱ. Za več informacij se obrnite na Deloitte Slovenija

ŵĞĂƐƵƌĞŵĞŶƚŵĞƚŚŽĚŽůŽŐŝĞƐƚŽďĞĂĚŽƉƚĞĚǁŚŝĐŚŵĂLJƌĞƐƵůƚŝŶǀĂƌŝĂŶĐĞƐďĞƚǁĞĞŶĞŶƚŝƚŝĞƐ͘dŚĞĂĚŽƉƚĞĚ ŵĞĂƐƵƌĞŵĞŶƚ ŵĞƚŚŽĚŽůŽŐŝĞƐ ŵĂLJ ĂůƐŽ ŝŵƉĂĐƚ ƚŚĞ ĐŽŵƉĂƌĂďŝůŝƚLJ ŽĨ ƐƵƐƚĂŝŶĂďŝůŝƚLJ ŵĂƚƚĞƌƐ ƌĞƉŽƌƚĞĚ ďLJ ĚŝĨĨĞƌĞŶƚŽƌŐĂŶŝnjĂƚŝŽŶƐĂŶĚĨƌŽŵLJĞĂƌƚŽLJĞĂƌǁŝƚŚŝŶĂŶŽƌŐĂŶŝnjĂƚŝŽŶĂƐŵĞƚŚŽĚŽůŽŐŝĞƐĞǀŽůǀĞ͘ In reporting forward looking information in accordance with ESRS, management of the 'ƌŽƵƉ is required to prepare the forward -looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the 'ƌŽƵƉ. Actual outcome is likely to be different since anticipated events frequently do not occur as expected.

In determining the disclosures in the ŽŶƐŽůŝĚĂƚĞĚ Sustainability Report, management of the Group interprets undefined legal and other terms. Undefined legal and other terms may be interpreted differently, including the legal conformity of their interpretation and, accordingly, are subject to uncertainties.

tĞĚƌĂǁLJŽƵƌĂƚƚĞŶƚŝŽŶƚŽƚŚĞĨŽůůŽǁŝŶŐƐƉĞĐŝĨŝĐůŝŵŝƚĂƚŝŽŶƐĚŝƐĐƵƐƐĞĚŝŶŽŶƐŽůŝĚĂƚĞĚSustainability Report: • Environmental reporting as applied by all companies includes information based on climate-related scenarios that are subject to inherent uncertainty because of incomplete scientific and economic knowledge about the likelihood, timing, or effect of possible future physical and transitional climate -related impacts. For the avoidance of doubt, the scope of our engagement and our responsibilities did not include performing work necessary for any assurance on the reliability, proper compilation, or accuracy of the prospective information.

• Any supply chain emissions metrics listed in the Consolidated Sustainability Report may include information provided by suppliers and third -party sources. Our procedures did not include obtaining assurance over the information provided by suppliers or third parties.

• The Consolidated Sustainability Report may include metrics that are derived from reported events relating to employees and subcontractors. As such, our testing may not identify misstatements relating to completeness, for example in instances where events may have occurred but have not been reported.

ZĞƐƉŽŶƐŝďŝůŝƚLJŽĨƚŚĞDĂŶĂŐĞŵĞŶƚŽĂƌĚŽĨƚŚĞ'ƌŽƵƉ

DĂŶĂŐĞŵĞŶƚ ŽĨ ƚŚĞ 'ƌŽƵƉ ŝƐ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ĚĞƐŝŐŶŝŶŐ ĂŶĚ ŝŵƉůĞŵĞŶƚŝŶŐ Ă ƉƌŽĐĞƐƐ ƚŽ ŝĚĞŶƚŝĨLJ ƚŚĞ ŝŶĨŽƌŵĂƚŝŽŶ ƌĞƉŽƌƚĞĚ ŝŶ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ ^Z^ ĂŶĚ ĨŽƌ ĚŝƐĐůŽƐŝŶŐ ƚŚŝƐƉƌŽĐĞƐƐŝŶŶŽƚĞ'Double materiality assessment' ŽĨ ƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͘ dŚŝƐƌĞƐƉŽŶƐŝďŝůŝƚLJŝŶĐůƵĚĞƐ͗

  • ƵŶĚĞƌƐƚĂŶĚŝŶŐƚŚĞĐŽŶƚĞdžƚŝŶǁŚŝĐŚƚŚĞGroup's ĂĐƚŝǀŝƚŝĞƐĂŶĚďƵƐŝŶĞƐƐƌĞůĂƚŝŽŶƐŚŝƉƐƚĂŬĞƉůĂĐĞĂŶĚ ĚĞǀĞůŽƉŝŶŐĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝƚƐĂĨĨĞĐƚĞĚƐƚĂŬĞŚŽůĚĞƌƐ͖
  • ƚŚĞ ŝĚĞŶƚŝĨŝĐĂƚŝŽŶ ŽĨ ƚŚĞ ĂĐƚƵĂů ĂŶĚ ƉŽƚĞŶƚŝĂů ŝŵƉĂĐƚƐ ;ďŽƚŚ ŶĞŐĂƚŝǀĞ ĂŶĚ ƉŽƐŝƚŝǀĞͿ ƌĞůĂƚĞĚ ƚŽ ƐƵƐƚĂŝŶĂďŝůŝƚLJŵĂƚƚĞƌƐ͕ĂƐǁĞůůĂƐƌŝƐŬƐĂŶĚŽƉƉŽƌƚƵŶŝƚŝĞƐƚŚĂƚĂĨĨĞĐƚ͕ŽƌĐŽƵůĚƌĞĂƐŽŶĂďůLJďĞĞdžƉĞĐƚĞĚ

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

ϲϴϮϭϳϮϯϯϲϱϬϴϲϭ&Ϭ&ϲϭϵϵϲϯ

Business report 2024 Key Highlights

Accounting report

Search in report

Appendix

to affect, the entity's financial position, financial performance, cash flows, access to finance or cost ŽĨĐĂƉŝƚĂůŽǀĞƌƚŚĞƐŚŽƌƚ Ͳ͕ŵĞĚŝƵŵ Ͳ͕ŽƌůŽŶŐ ͲƚĞƌŵ͖

  • ƚŚĞ ĂƐƐĞƐƐŵĞŶƚ ŽĨ ƚŚĞ ŵĂƚĞƌŝĂůŝƚLJ ŽĨ ƚŚĞ ŝĚĞŶƚŝĨŝĞĚ ŝŵƉĂĐƚƐ͕ ƌŝƐŬƐ ĂŶĚ ŽƉƉŽƌƚƵŶŝƚŝĞƐ ƌĞůĂƚĞĚ ƚŽ ƐƵƐƚĂŝŶĂďŝůŝƚLJŵĂƚƚĞƌƐďLJƐĞůĞĐƚŝŶŐĂŶĚĂƉƉůLJŝŶŐĂƉƉƌŽƉƌŝĂƚĞƚŚƌĞƐŚŽůĚƐ͖ĂŶĚ
  • ŵĂŬŝŶŐĂƐƐƵŵƉƚŝŽŶƐƚŚĂƚĂƌĞƌĞĂƐŽŶĂďůĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͘

DĂŶĂŐĞŵĞŶƚ ŽĨ ƚŚĞ'ƌŽƵƉ ŝƐĨƵƌƚŚĞƌ ƌĞƐƉŽŶƐŝďůĞĨŽƌ ƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚ ͕ ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ70(c) and 70(č) ŽĨƚŚĞ' Ͳ ϭ ŝŵƉůĞŵĞŶƚŝŶŐϮϵ;ĂͿ ŽĨƚŚĞhŝƌĞĐƚŝǀĞϮϬϭϯͬϯϰͬh͕ ŝŶĐůƵĚŝŶŐ͗

  • ĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞ^Z^͖
  • ƉƌĞƉĂƌŝŶŐƚŚĞĚŝƐĐůŽƐƵƌĞƐŝŶ'Disclosures under the EU Taxonomy Regulation' ŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͕ŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƌƚŝĐůĞϴŽĨhZĞŐƵůĂƚŝŽŶϮϬϮϬͬϴϱϮ ͖
  • ĚĞƐŝŐŶŝŶŐ͕ŝŵƉůĞŵĞŶƚŝŶŐĂŶĚŵĂŝŶƚĂŝŶŝŶŐƐƵĐŚŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐƚŚĂƚŵĂŶĂŐĞŵĞŶƚĚĞƚĞƌŵŝŶĞƐĂƌĞ ŶĞĐĞƐƐĂƌLJ ƚŽĞŶĂďůĞ ƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚ ƚŚĂƚ ŝƐĨƌĞĞĨƌŽŵ ŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͖ĂŶĚ
  • ƚŚĞ ƐĞůĞĐƚŝŽŶ ĂŶĚ ĂƉƉůŝĐĂƚŝŽŶ ŽĨ ĂƉƉƌŽƉƌŝĂƚĞ ƐƵƐƚĂŝŶĂďŝůŝƚLJ ƌĞƉŽƌƚŝŶŐ ŵĞƚŚŽĚƐ ĂŶĚ ŵĂŬŝŶŐ ĂƐƐƵŵƉƚŝŽŶƐĂŶĚĞƐƚŝŵĂƚĞƐĂďŽƵƚŝŶĚŝǀŝĚƵĂů ƐƵƐƚĂŝŶĂďŝůŝƚLJ ĚŝƐĐůŽƐƵƌĞƐ ƚŚĂƚĂƌĞ ƌĞĂƐŽŶĂďůĞŝŶ ƚŚĞ ĐŝƌĐƵŵƐƚĂŶĐĞƐ͘

DĂŶĂŐĞŵĞŶƚŽĨƚŚĞ'ƌŽƵƉ ŝƐĂůƐŽƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ ŝŶůŝŶĞǁŝƚŚƚŚĞ ƚĞĐŚŶŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐƌĞůĂƚĞĚƚŽƚŚĞ ƐŝŶŐůĞĞůĞĐƚƌŽŶŝĐĨŽƌŵĂƚĂƐĚĞƚĞƌŵŝŶĞĚŝŶƌƚŝĐůĞϱϴŽĨ ' ͲϭĂŶĚƌƚŝĐůĞϯŽĨƚŚĞ ^&ZĞŐƵůĂƚŝŽŶ͘dŚŝƐƌĞƐƉŽŶƐŝďŝůŝƚLJĂůƐŽŝŶĐůƵĚĞƐƚŚĞ ĚĞƐŝŐŶ͕ŝŵƉůĞŵĞŶƚĂƚŝŽŶĂŶĚ ŵĂŝŶƚĞŶĂŶĐĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐƚŽĞŶĂďůĞƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚƚŚĂƚŝƐ ĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŶŽŶ ͲĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐŽĨƌƚŝĐůĞϱϴŽĨ' ͲϭĂŶĚƌƚŝĐůĞϯŽĨƚŚĞ ^& ZĞŐƵůĂƚŝŽŶ͘

dŚŽƐĞĐŚĂƌŐĞĚǁŝƚŚŐŽǀĞƌŶĂŶĐĞĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌŽǀĞƌƐĞĞŝŶŐƚŚĞGroup'sƐƵƐƚĂŝŶĂďŝůŝƚLJƌĞƉŽƌƚŝŶŐƉƌŽĐĞƐƐ͘

Practitioner's Responsibility

ϲϴϮϭϳϮϯϯϲϱϬϴϲϭ&Ϭ&ϲϭϵϵϲϯ

tĞĐŽŶĚƵĐƚĞĚŽƵƌůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/ŶƚĞƌŶĂƚŝŽŶĂů^ƚĂŶĚĂƌĚŽŶƐƐƵƌĂŶĐĞ ŶŐĂŐĞŵĞŶƚƐ;/^Ϳ ϯϬϬϬ;ZĞǀŝƐĞĚͿ͕ ƐƐƵƌĂŶĐĞŶŐĂŐĞŵĞŶƚƐ ŽƚŚĞƌ ƚŚĂŶƵĚŝƚƐ Žƌ ZĞǀŝĞǁƐ ŽĨ,ŝƐƚŽƌŝĐĂů &ŝŶĂŶĐŝĂů/ŶĨŽƌŵĂƚŝŽŶ ("ISAE 3000 (Revised)")͘

dŚĞƉƌŽĐĞĚƵƌĞƐƉĞƌĨŽƌŵĞĚŝŶĂůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚǀĂƌLJŝŶŶĂƚƵƌĞĂŶĚƚŝŵŝŶŐ ĨƌŽŵ͕ĂŶĚĂƌĞůĞƐƐ ŝŶĞdžƚĞŶƚƚŚĂŶĨŽƌ͕ĂƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚ͘ŽŶƐĞƋƵĞŶƚůLJ͕ƚŚĞůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞŽďƚĂŝŶĞĚŝŶĂ ůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚŝƐƐƵďƐƚĂŶƚŝĂůůLJůŽǁĞƌƚŚĂŶƚŚĞĂƐƐƵƌĂŶĐĞƚŚĂƚǁŽƵůĚŚĂǀĞďĞĞŶŽďƚĂŝŶĞĚŚĂĚ ĂƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚďĞĞŶƉĞƌĨŽƌŵĞĚ͘

KƵƌ ŽďũĞĐƚŝǀĞƐ ĂƌĞ ƚŽ ƉůĂŶ ĂŶĚ ƉĞƌĨŽƌŵ ƚŚĞ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ƚŽ ŽďƚĂŝŶ ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĂďŽƵƚ ǁŚĞƚŚĞƌƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ ŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚ ŽƌĞƌƌŽƌ͕ĂŶĚƚŽŝƐƐƵĞĂůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞƌĞƉŽƌƚƚŚĂƚŝŶĐůƵĚĞƐŽƵƌĐŽŶĐůƵƐŝŽŶ͘DŝƐƐƚĂƚĞŵĞŶƚƐĐĂŶĂƌŝƐĞĨƌŽŵ ĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚĂƌĞĐŽŶƐŝĚĞƌĞĚŵĂƚĞƌŝĂůŝĨ͕ŝŶĚŝǀŝĚƵĂůůLJŽƌŝŶ ƚŚĞĂŐŐƌĞŐĂƚĞ͕ ƚŚĞLJĐŽƵůĚ ƌĞĂƐŽŶĂďůLJďĞ ĞdžƉĞĐƚĞĚƚŽŝŶĨůƵĞŶĐĞĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ ĂƐĂ ǁŚŽůĞ͘

ƐƉĂƌƚŽĨĂůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/^ϯϬϬϬ;ZĞǀŝƐĞĚͿǁĞĞdžĞƌĐŝƐĞƉƌŽĨĞƐƐŝŽŶĂů ũƵĚŐŵĞŶƚĂŶĚŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐŬĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĞŶŐĂŐĞŵĞŶƚ͘

KƵƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶƌĞƐƉĞĐƚŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͕ŝŶƌĞůĂƚŝŽŶƚŽƚŚĞWƌŽĐĞƐƐ͕ŝŶĐůƵĚĞ͗

  • ĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨƚŚĞWƌŽĐĞƐƐ͕ŝŶĐůƵĚŝŶŐƚŚĞŽƵƚĐŽŵĞŽĨƚŚĞWƌŽĐĞƐƐ͖
  • ĞƐŝŐŶŝŶŐ ĂŶĚ ƉĞƌĨŽƌŵŝŶŐ ƉƌŽĐĞĚƵƌĞƐ ƚŽ ĞǀĂůƵĂƚĞ ǁŚĞƚŚĞƌ ƚŚĞ WƌŽĐĞƐƐ ŝƐ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ƚŚĞ Group's ĚĞƐĐƌŝƉƚŝŽŶŽĨŝƚƐWƌŽĐĞƐƐ͕ĂƐĚŝƐĐůŽƐĞĚŝŶŶŽƚĞ'Double materiality assessment' ͘

KƵƌŽƚŚĞƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶƌĞƐƉĞĐƚŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚŝŶĐůƵĚĞ͗

  • Obtaining an understanding of the entity's control environment, processes and information systems ƌĞůĞǀĂŶƚƚŽƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚďƵƚŶŽƚĞǀĂůƵĂƚŝŶŐƚŚĞĚĞƐŝŐŶ ŽĨ ƉĂƌƚŝĐƵůĂƌ ĐŽŶƚƌŽů ĂĐƚŝǀŝƚŝĞƐ͕ ŽďƚĂŝŶŝŶŐ ĞǀŝĚĞŶĐĞ ĂďŽƵƚ ƚŚĞŝƌ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ Žƌ ƚĞƐƚŝŶŐ ƚŚĞŝƌ ŽƉĞƌĂƚŝŶŐĞĨĨĞĐƚŝǀĞŶĞƐƐ͖
  • /ĚĞŶƚŝĨLJŝŶŐĚŝƐĐůŽƐƵƌĞƐǁŚĞƌĞŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚƐĂƌĞůŝŬĞůLJƚŽĂƌŝƐĞ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌ ĞƌƌŽƌ ͖
  • ĞƐŝŐŶŝŶŐĂŶĚƉĞƌĨŽƌŵŝŶŐƉƌŽĐĞĚƵƌĞƐƌĞƐƉŽŶƐŝǀĞƚŽĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚ ǁŚĞƌĞ ŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚƐ ĂƌĞ ůŝŬĞůLJ ƚŽ ĂƌŝƐĞ͘ dŚĞ ƌŝƐŬ ŽĨ ŶŽƚ ĚĞƚĞĐƚŝŶŐ Ă ŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚƌĞƐƵůƚŝŶŐĨƌŽŵĨƌĂƵĚŝƐŚŝŐŚĞƌƚŚĂŶĨŽƌŽŶĞƌĞƐƵůƚŝŶŐĨƌŽŵĞƌƌŽƌ͕ĂƐĨƌĂƵĚŵĂLJŝŶǀŽůǀĞ ĐŽůůƵƐŝŽŶ͕ĨŽƌŐĞƌLJ͕ŝŶƚĞŶƚŝŽŶĂůŽŵŝƐƐŝŽŶƐ͕ŵŝƐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ŽƌƚŚĞŽǀĞƌƌŝĚĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽů ͖
  • ƐƐĞƐƐǁŚĞƚŚĞƌƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚŚĂƐďĞĞŶƉƌĞƉĂƌĞĚ͕ŝŶĂůůŵĂƚĞƌŝĂůƌĞƐƉĞĐƚƐ͕ ŝŶƚŚĞĨŽƌŵĂƚƐƉĞĐŝĨŝĞĚŝŶƌƚŝĐůĞϱϴŽĨ' ͲϭĂŶĚƌƚŝĐůĞϯŽĨƚŚĞ ^&ZĞŐƵůĂƚŝŽŶ͘

K Ƶ ƌ / Ŷ Ě Ğ Ɖ Ğ Ŷ Ě Ğ Ŷ Đ Ğ Ă Ŷ Ě Y Ƶ Ă ů ŝ ƚ LJ D Ă Ŷ Ă Ő Ğ ŵ Ğ Ŷ ƚ

tĞĐŽŵƉůŝĞĚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŝŶĚĞƉĞŶĚĞŶĐĞĂŶĚŽƚŚĞƌĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ/ŶƚĞƌŶĂƚŝŽŶĂůŽĚĞ ŽĨ ƚŚŝĐƐ ĨŽƌ WƌŽĨĞƐƐŝŽŶĂů ĐĐŽƵŶƚĂŶƚƐ ;ŝŶĐůƵĚŝŶŐ /ŶƚĞƌŶĂƚŝŽŶĂů /ŶĚĞƉĞŶĚĞŶĐĞ ^ƚĂŶĚĂƌĚƐͿ ŝƐƐƵĞĚ ďLJ ƚŚĞ International Ethics Standards Board for Accountants (the "Code"). The Code is founded on fundamental ƉƌŝŶĐŝƉůĞƐŽĨŝŶƚĞŐƌŝƚLJ͕ŽďũĞĐƚŝǀŝƚLJ͕ƉƌŽĨĞƐƐŝŽŶĂůĐŽŵƉĞƚĞŶĐĞĂŶĚĚƵĞĐĂƌĞ͕ĐŽŶĨŝĚĞŶƚŝĂůŝƚLJĂŶĚƉƌŽĨĞƐƐŝŽŶĂů ďĞŚĂǀŝŽƵƌ͘

ϲϴϮϭϳϮϯϯϲϱϬϴϲϭ&Ϭ&ϲϭϵϵϲϯ • KďƚĂŝŶŝŶŐĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞWƌŽĐĞƐƐďƵƚŶŽƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨƉƌŽǀŝĚŝŶŐĂĐŽŶĐůƵƐŝŽŶŽŶƚŚĞ tĞĂƉƉůŝĞĚ/ŶƚĞƌŶĂƚŝŽŶĂů^ƚĂŶĚĂƌĚŽŶYƵĂůŝƚLJDĂŶĂŐĞŵĞŶƚ; "/^YD ϭ")͕YƵĂůŝƚLJDĂŶĂŐĞŵĞŶƚĨŽƌ&ŝƌŵƐƚŚĂƚ WĞƌĨŽƌŵƵĚŝƚƐŽƌZĞǀŝĞǁƐŽĨ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͕ŽƌKƚŚĞƌƐƐƵƌĂŶĐĞŽƌZĞůĂƚĞĚ^ĞƌǀŝĐĞƐŶŐĂŐĞŵĞŶƚƐ͕ ĂŶĚĂĐĐŽƌĚŝŶŐůLJŵĂŝŶƚĂŝŶĂ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƐLJƐƚĞŵ ŽĨƋƵĂůŝƚLJ ĐŽŶƚƌŽůŝŶĐůƵĚŝŶŐĚŽĐƵŵĞŶƚĞĚ ƉŽůŝĐŝĞƐĂŶĚ ƉƌŽĐĞĚƵƌĞƐ ƌĞŐĂƌĚŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚĞƚŚŝĐĂů ƌĞƋƵŝƌĞŵĞŶƚƐ͕ƉƌŽĨĞƐƐŝŽŶĂů ƐƚĂŶĚĂƌĚƐĂŶĚĂƉƉůŝĐĂďůĞůĞŐĂů ĂŶĚƌĞŐƵůĂƚŽƌLJƌĞƋƵŝƌĞŵĞŶƚƐ͘

^ƵŵŵĂƌLJŽĨtŽƌŬWĞƌĨŽƌŵĞĚ

ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ŝŶǀŽůǀĞƐ ƉĞƌĨŽƌŵŝŶŐ ƉƌŽĐĞĚƵƌĞƐ ƚŽ ŽďƚĂŝŶ ĞǀŝĚĞŶĐĞ ĂďŽƵƚ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͘

dŚĞ ŶĂƚƵƌĞ͕ ƚŝŵŝŶŐĂŶĚĞdžƚĞŶƚ ŽĨƉƌŽĐĞĚƵƌĞƐ ƐĞůĞĐƚĞĚ ĚĞƉĞŶĚ ŽŶ ƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐĞŵĞŶƚ͕ŝŶĐůƵĚŝŶŐ ƚŚĞ ŝĚĞŶƚŝĨŝĐĂƚŝŽŶŽĨĚŝƐĐůŽƐƵƌĞƐǁŚĞƌĞŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚƐĂƌĞůŝŬĞůLJƚŽĂƌŝƐĞ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͕ ŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͘

/ŶĐŽŶĚƵĐƚŝŶŐŽƵƌůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚ͕ǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞWƌŽĐĞƐƐ͕ǁĞ͗

  • KďƚĂŝŶĞĚĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞWƌŽĐĞƐƐďLJ͗
    • o ƉĞƌĨŽƌŵŝŶŐŝŶƋƵŝƌŝĞƐƚŽƵŶĚĞƌƐƚĂŶĚƚŚĞƐŽƵƌĐĞƐŽĨƚŚĞŝŶĨŽƌŵĂƚŝŽŶ ƵƐĞĚďLJŵĂŶĂŐĞŵĞŶƚ ;Ğ͘Ő͕͘ƐƚĂŬĞŚŽůĚĞƌĞŶŐĂŐĞŵĞŶƚ͕ďƵƐŝŶĞƐƐƉůĂŶƐĂŶĚƐƚƌĂƚĞŐLJĚŽĐƵŵĞŶƚƐͿ͖ĂŶĚ
    • o ƌĞǀŝĞǁŝŶŐƚŚĞGroup's ŝŶƚĞƌŶĂůĚŽĐƵŵĞŶƚĂƚŝŽŶŽĨŝƚƐWƌŽĐĞƐƐ͖ĂŶĚ
  • ǀĂůƵĂƚĞĚǁŚĞƚŚĞƌƚŚĞĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚĨƌŽŵŽƵƌƉƌŽĐĞĚƵƌĞƐĂďŽƵƚƚŚĞWƌŽĐĞƐƐŝŵƉůĞŵĞŶƚĞĚďLJ ƚŚĞ'ƌŽƵƉ ǁĂƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĚĞƐĐƌŝƉƚŝŽŶŽĨƚŚĞWƌŽĐĞƐƐƐĞƚŽƵƚŝŶŶŽƚĞ'Double materiality assessment' ͘

2024 Key Highlights

Accounting report

Search in report

Appendix

/ŶĐŽŶĚƵĐƚŝŶŐŽƵƌůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚ͕ǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͕ ǁĞ͗

  • KďƚĂŝŶĞĚĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞGroup's ƌĞƉŽƌƚŝŶŐƉƌŽĐĞƐƐĞƐƌĞůĞǀĂŶƚƚŽƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨŝƚƐ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚďLJ͗
    • o ƉĞƌĨŽƌŵŝŶŐ ŝŶƋƵŝƌŝĞƐ ƚŽ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ Group's ĐŽŶƚƌŽů ĞŶǀŝƌŽŶŵĞŶƚ͕ ƉƌŽĐĞƐƐĞƐ ĂŶĚ ŝŶĨŽƌŵĂƚŝŽŶƐLJƐƚĞŵƐƌĞůĞǀĂŶƚƚŽƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ ͖
  • ǀĂůƵĂƚĞĚ ǁŚĞƚŚĞƌŵĂƚĞƌŝĂůŝŶĨŽƌŵĂƚŝŽŶ ŝĚĞŶƚŝĨŝĞĚďLJƚŚĞWƌŽĐĞƐƐ ŝƐ ŝŶĐůƵĚĞĚŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ ͖
  • ǀĂůƵĂƚĞĚǁŚĞƚŚĞƌƚŚĞƐƚƌƵĐƚƵƌĞĂŶĚƚŚĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚŝƐ ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^Z^͖
  • WĞƌĨŽƌŵĞĚŝŶƋƵŝƌĞƐŽĨƌĞůĞǀĂŶƚƉĞƌƐŽŶŶĞůĂŶĚĂŶĂůLJƚŝĐĂůƉƌŽĐĞĚƵƌĞƐŽŶƐĞůĞĐƚĞĚĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͖
  • WĞƌĨŽƌŵĞĚƐƵďƐƚĂŶƚŝǀĞĂƐƐƵƌĂŶĐĞƉƌŽĐĞĚƵƌĞƐďĂƐĞĚŽŶĂƐĂŵƉůĞďĂƐŝƐŽŶƐĞůĞĐƚĞĚĚŝƐĐůŽƐƵƌĞƐŝŶ ƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͖
  • KďƚĂŝŶĞĚ ĞǀŝĚĞŶĐĞ ŽŶ ƚŚĞ ŵĞƚŚŽĚƐ ĨŽƌ ĚĞǀĞůŽƉŝŶŐ ŵĂƚĞƌŝĂů ĞƐƚŝŵĂƚĞƐ ĂŶĚ ĨŽƌǁĂƌĚ ͲůŽŽŬŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶĂŶĚŽŶŚŽǁƚŚĞƐĞŵĞƚŚŽĚƐǁĞƌĞĂƉƉůŝĞĚ͖
  • KďƚĂŝŶĞĚ ĂŶ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ ƚŚĞ ƉƌŽĐĞƐƐ ƚŽ ŝĚĞŶƚŝĨLJ ƚĂdžŽŶŽŵLJ ͲĞůŝŐŝďůĞ ĂŶĚ ƚĂdžŽŶŽŵLJ ͲĂůŝŐŶĞĚ ĞĐŽŶŽŵŝĐĂĐƚŝǀŝƚŝĞƐĂŶĚƚŚĞĐŽƌƌĞƐƉŽŶĚŝŶŐĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚ͖
  • ǀĂůƵĂƚĞĚ ǁŚĞƚŚĞƌ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚ ŚĂƐ ďĞĞŶ ƉƌĞƉĂƌĞĚ ŝŶ ƚŚĞ ĨŽƌŵĂƚ ƐƉĞĐŝĨŝĞĚŝŶƌƚŝĐůĞϱϴŽĨ' ͲϭĂŶĚƌƚŝĐůĞϯŽĨƚŚĞ ^&ZĞŐƵůĂƚŝŽŶ ͘

tĞďĞůŝĞǀĞ ƚŚĂƚ ƚŚĞĞǀŝĚĞŶĐĞǁĞ ŚĂǀĞ ŽďƚĂŝŶĞĚŝƐ ƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞ ƚŽ ƉƌŽǀŝĚĞĂ ďĂƐŝƐĨŽƌ ŽƵƌ ĐŽŶĐůƵƐŝŽŶ͘

>ŝŵŝƚĞĚƐƐ Ƶ ƌ Ă Ŷ Đ Ğ Ž Ŷ Đ ů Ƶ Ɛ ŝ Ž Ŷ

ĂƐĞĚŽŶƚŚĞƉƌŽĐĞĚƵƌĞƐǁĞŚĂǀĞƉĞƌĨŽƌŵĞĚĂŶĚƚŚĞĞǀŝĚĞŶĐĞǁĞŚĂǀĞŽďƚĂŝŶĞĚ͕ŶŽƚŚŝŶŐŚĂƐĐŽŵĞƚŽŽƵƌ ĂƚƚĞŶƚŝŽŶƚŚĂƚĐĂƵƐĞƐƵƐƚŽďĞůŝĞǀĞƚŚĂƚƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚŝƐŶŽƚƉƌĞƉĂƌĞĚ͕ŝŶĂůůŵĂƚĞƌŝĂů ƌĞƐƉĞĐƚƐ͕ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ 70(c) and 70(č) ŽĨ ƚŚĞ ' Ͳ ϭ ŝŵƉůĞŵĞŶƚŝŶŐ Ϯϵ;ĂͿ ŽĨ ƚŚĞ h ŝƌĞĐƚŝǀĞ ϮϬϭϯͬϯϰͬh͕ŝŶĐůƵĚŝŶŐ͗

  • ŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞƵƌŽƉĞĂŶ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚŝŶŐ^ƚĂŶĚĂƌĚƐ;^Z^Ϳ͕ŝŶĐůƵĚŝŶŐƚŚĂƚƚŚĞƉƌŽĐĞƐƐ ĐĂƌƌŝĞĚŽƵƚďLJ ƚŚĞ'ƌŽƵƉ ƚŽŝĚĞŶƚŝĨLJ ƚŚĞŝŶĨŽƌŵĂƚŝŽŶ ƌĞƉŽƌƚĞĚŝŶ ƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚŝƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĚĞƐĐƌŝƉƚŝŽŶƐĞƚŽƵƚŝŶŶŽƚĞ'Double materiality assessment' ͖
  • ŽŵƉůŝĂŶĐĞ ŽĨ ƚŚĞ ĚŝƐĐůŽƐƵƌĞƐ ŝŶ 'Disclosures under the EU Taxonomy Regulation' ŽĨ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚǁŝƚŚƌƚŝĐůĞϴŽĨdĂdžŽŶŽŵLJZĞŐƵůĂƚŝŽŶ͖ĂŶĚ
  • ŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƚŽƉƌĞƉĂƌĞƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJZĞƉŽƌƚŝŶƚŚĞĨŽƌŵĂƚ ƐƉĞĐŝĨŝĞĚŝŶƌƚŝĐůĞϱϴŽĨ' ͲϭĂŶĚƌƚŝĐůĞϯŽĨƚŚĞ ^&ZĞŐƵůĂƚŝŽŶ͘

KƵƌůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚĚŽĞƐŶŽƚĞdžƚĞŶĚƚŽŝŶĨŽƌŵĂƚŝŽŶŝŶƌĞƐƉĞĐƚŽĨĞĂƌůŝĞƌƉĞƌŝŽĚƐ͘

ϲϴϮϭϳϮϯϯϲϱϬϴϲϭ&Ϭ&ϲϭϵϵϲϯ KƚŚĞƌDĂƚƚĞƌ >K/ddZs//:Ě͘Ž͘Ž͘ ƵŶĂũƐŬĂĐĞƐƚĂϭϲϱ ϭϬϬϬ>ũƵďůũĂŶĂ

Barbara Žibret Kralj <ĞLJƐƵƐƚĂŝŶĂďŝůŝƚLJƉĂƌƚŶĞƌ >ũƵďůũĂŶĂ͕DĂƌĐŚϭϭƚŚϮϬϮϱ

&ŽƌƐŝŐŶĂƚƵƌĞƉůĞĂƐĞƌĞĨĞƌƚŽ ƚ Ś Ğ Ž ƌ ŝ Ő ŝ Ŷ Ă ů ^ ů Ž ǀ Ğ Ŷ ŝ Ă Ŷ ǀ Ğ ƌƐ ŝ Ž

ũƵďůũĂŶĂ͕DĂƌĐŚϭϭƚŚ ϮϬϮϱ

d Z E ^ > d / K E K E > z ͕ ^ > K s E K Z / ' / E > W Z s / > ^

Ŷ ͘

147

2024 Key Highlights

Accounting report

Appendix

11. Digital Operational Resilience Report

11.1 Information security risk management

At the core of digital operational resilience is ensuring the confidentiality, integrity, authenticity and availability of the information and systems that support the implementation of the Group's strategy. These principles are upheld by all Group companies through adherence to minimum standards.

To effectively manage information security risks, including those related to information and communication technology (ICT), the Group has established an information security management system (ISMS). These risks are managed as a key component of operational risk management within the comprehensive risk management system (see Section 9.1 Risk management system). Information security objectives are aligned with strategic goals, with specific measures developed to achieve them.

Information security risks are regularly assessed in accordance with ISO/IEC 27001 requirements and relevant legislation. This process involves identifying and analysing potential threats and vulnerabilities that could impact the security and continuity of business processes. Based on these assessments, guidelines and detailed measures are formulated to manage and mitigate risks effectively and enhance security practices. A proactive approach is considered essential to achieving information security objectives. Therefore, assessment results, identified risks and proposed measures are regularly discussed at internal committee meetings, such as the Operational Risk Committee, and at Management Board meetings.

11.2 Information security objectives

Information security objectives are shaped by the needs and expectations of key stakeholders and aligned with strategic goals. The performance of control processes is regularly monitored through a set of indicators, which were upgraded and further refined in 2024. These indicators track five key objectives:

Ensuring confidentiality, integrity, authenticity and availability of information processed in business processes.

Successful identification and effective management of incidents, which are fundamental to information security and digital operational resilience. In 2024, the Company's incident management process was overhauled, leading to improved identification and a 40% increase in incident handling compared to the previous year, all of which were of low severity.

Security monitoring systems detected 22% more security incidents related to ICT systems and services, all of which were effectively resolved – 40% through automated means based on predefined rules.

Information security risks associated with the Group's business, ICT assets for business processes and outsourcers (including subcontractors) in the ICT area are continuously identified and managed to maintain them at an acceptable level.

The Company's effective and comprehensive ICT risk management framework was upgraded in line with the Digital Operational Resilience Act (DORA), with a stronger focus on ICT outsourcers and associated risks, with a more in-depth assessment of these risks. In 2024, 17% more risks were assessed compared to the previous year.

Staff training and employee awareness initiatives ensure a consistently appropriate level of knowledge regarding information security risks in the Group's operations, as well as technological solutions and other risk management methods. Roles and responsibilities are assigned to employees to ensure collective responsibility for information security, minimising the impact of security threats.

All employees receive regular training on information security and social engineering techniques. Updates on current cybersecurity threats and guidance on maintaining high security levels of information and assets are provided via the internal portal and email. Employee awareness is continuously monitored through post-training tests and annual evaluations of social engineering recognition, with a focus on phishing. Staff also receive additional training on information security aspects through professional workshops, seminars and conferences.

In 2024, the scope of mandatory training was expanded and revised to address current cybersecurity risks. On average, employees completed at least one additional information security training compared to the previous year. Awareness levels are assessed through post-training tests and annual social engineering simulations, particularly targeting phishing. A positive trend in awareness improvement has been observed. Staff receive additional training on information security aspects through workshops, seminars and conferences.

Business continuity is ensured to the greatest extent possible, even when relying on external ICT service providers. Business damage caused by security incidents is minimised through effective identification, resolution and mitigation of consequences.

In 2024, business continuity plans were revised to cover a broad range of organisational units and security threats, supported by awareness-raising workshops on business continuity management. Regular analysis identifies critical business processes and ICT assets, as well as the time required to restore operations in the event of major security incidents. ICT processes and systems supporting the Company's services are regularly tested for business continuity. An annual self-assessment of the highest risk concentrations by process was conducted in 2024. Test scenarios are designed based on prevailing threats and trends in digital operational resilience, with a particular focus in 2024 on scenarios involving the recovery or re-establishment of critical ICT systems (see Section 2.8.2.6 in the Accounting Report for more details on business continuity system).

The performance of the Company's information security management system is continuously monitored and improved to ensure compliance with legislative requirements, European Supervisory Authority (EIOPA) guidelines and positions of the relevant supervisory authorities.

In 2024, DORA requirements were intensively implemented to enhance digital operational resilience. Processes and procedures related to ICT assets and services were upgraded based on updated information security documents, incorporating recommendations from internal and external audits and additional requirements from the latest edition of the ISO/IEC 27001 standard.

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2024 Key Highlights

11. Digital Operational Resilience Report

Accounting report

Appendix

11.3 Adopted information security and digital operational resilience frameworks

The information security management system of the Company, as the parent company, and the Group, as its operator, is certified under ISO/IEC 27001, reinforcing a commitment to continuous improvement. In addition to regular activities such as risk management, verification of the effective functioning of implemented controls and reporting to top management on the active management of the system, a successful transition to the revised and upgraded requirements of the standard was completed in 2024. This was confirmed at the end of the year by an external independent audit and the renewal of the certificate.

The ICT risk management system was further upgraded by implementing DORA requirements. The Company's internal documents were also revised to align with the new ISO/IEC 27001 standard and the DORA.

11.4 Measures to improve ICT incident preparedness

ICT incidents can significantly impact the Group's operations and the achievement of strategic objectives. Regular planning and implementation of activities ensure the identification of current ICT risks, the establishment of measures to reduce them to an acceptable level, and the enhancement of response capabilities for identified ICT events and incidents. This approach limits and swiftly mitigates their impact while implementing measures to reduce the likelihood of, or prevent, new ICT incidents (see Section 4.1.3 Digital transformation and cyber security).

Security and monitoring tools are in place to continuously track the performance of ICT systems and services and detect events that could impact security. High-performance automation, leveraging artificial intelligence and machine learning capabilities, effectively addresses identified vulnerabilities, thereby strengthening the security of systems and services. The current approach is based on a zero-trust architecture. The Company's cyber security operations centre focuses on prevention activities, early identification and real-time response to security incidents to prevent data loss and minimise the impact of incidents on the Group's operations.

Regular reviews of the security management system ensure that processes align with internal regulations and that security measures are effective, supporting continuous system improvement. These reviews involve qualified and independent experts, and their frequency is determined based on business needs and identified risks. Security reviews of ICT systems and services across Group companies are carried out according to the Company's and Group's plans, including both regular scheduled and unannounced reviews. As part of the business continuity management system, the Company and the Group test recovery plans under various scenarios, such as the unavailability of certain sites. Lessons learned are incorporated into internal processes and systems to strengthen information security and enhance the Group's digital operational resilience.

In response to the rapidly growing cyber threat landscape, financial investments in advanced information security and digital operational resilience solutions are increasing annually at a rate of over 30%. Onethird of the annual budget is allocated to cyber threat protection services and ICT system security, with the remaining two-thirds dedicated to cyber resilience software solutions.

11.5 Obtained assurances (internal and external)

In November 2023, the Company's Internal Audit Department prepared an annual work plan, which was adopted by the Management Board with the consent of the Supervisory Board. The plan is based on an audit risk assessment, strategic orientations and work guidelines. It identifies the need to increase the frequency of internal audits in areas with major risks identified, including ICT, which are regularly audited. As part of its mandate, the Internal Audit Department regularly monitors the implementation of issued recommendations and provides periodic reports to the Management Board, the Audit Committee and the Supervisory Board.

In the audits conducted in 2024 at the Company and selected Group companies, the focus was primarily on the management of ICT process areas. In this context, the audits also examined the management of cyber risks, including the implementation of recommendations related to cyber security, remote work security, and cloud services and data warehouse management.

In 2024, the Company underwent an external audit of its information security system against the latest version of ISO 27001:2022 and renewed its certification. It also conducted external security reviews (pentests), which did not reveal any increased risks regarding information security. During the implementation of the DORA project in 2024, the Company additionally commissioned an independent external review of compliance with DORA requirements.

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Accounting Report

Business report

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

Contents

Statement of management's responsibilities 151
Independent auditor's report 152
1. Financial statements 156
1.1 Statement of financial position 156
1.2 Statement of profit or loss 157
1.3 Statement of other comprehensive income 158
1.4 Statement of changes in equity 159
1.5 Cash flow statement 161
2. Notes to the financial statements 162
2.1 Profile of Zavarovalnica Triglav and Triglav Group 162
2.2 Bases for the preparation of financial statements 170
2.3 Bases for consolidation 170
2.4 Foreign currency translation 171
2.5 Significant accounting policies 171
2.6 Significant accounting judgments,estimates and assumptions 191
2.7 The merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. 193
2.8 Risk management 198
2.9 Segment reporting 220
2.10 The impact of geopolitical risks, the changed economic situation and climate change
on the Group's and the Company's financial statements 229
2.11 Tax policy 229
2.12 The impact of new or amended standards on the preparation of financial statements 230
3. Notes to specific significant items in the financial statements 232
3.1 Insurance business 232
3.2 Reinsurance business 272
3.3 Investments in subsidiaries, associates and joint ventures 284
3.4 Financial investments and their return 285
3.5 Financial contract assets and liabilities 290
3.6 Operating expenses 295
3.7 Notes to other significant items in the financial statements 299
4. Other information 317
4.1 Fair value measurement of assets and liabilities 317
4.2 Amounts spent on auditors 320
4.3 Government grants 320
4.4 Related party transactions 321
4.5 Contingent assets and liabilities and other off-balance sheet records 324
4.6 Major legal and arbitration disputes 324
4.7 Events after the reporting period 324

Accounting report

Statement of management's responsibilities

Independent auditor's report

Appendix

Statement of management's responsibilities

The Management Board herewith confirms the financial statements Zavarovalnica Triglav, d.d. and Triglav Group for the year ended 31 December 2024, and the accompanying accounting policies and notes to the accounting policies.

The Management Board is responisible for preparing the Annual Report so that it is true and fair presentation of the Company's and Group's assets and liabilities, financial position and profit for the year ended 31 December 2024 in accordance with International Financial Reporting Standards as adopted by the EU.

The Management Board additionally confirms that the appropriate accounting policies were consistently used and that the accounting estimates were prepared accoring to the principles of prudence and good management. The Management Board furthermore confirms that the financial statements, together with the notes are prepared on a going concern basis and that they comply with the applicable legislation and International Financial Reporting Standards as adopted by the EU.

The Management Board confirms that the Business Report includes a fair presentation of the development and financial position of the Company and the Group, including a description of the significant risks to which the Company and the Group are exposed to.

The Management Board is also responsibile for appropriate accounting practices, for the adoption of appropriate measures for the protection of assets, and for the prevention and identification of fraud and other irregularities or illegal acts.

The tax authorities may, at any time within the period of five years since the day the tax become chargeable, review the operations of the Company, which may result in additional tax liabilities, default interest and penalties related to corporate income tax and/or other taxes or levies. The Management Board of the Company is unaware of any circumstances that could potentially result in any such significant liability.

Andrej Slapar President of the Management Board

Uroš Ivanc Management Board Member

Marica Makoter Management Board Member

Tadej Čoroli Management Board Member

Blaž Jakič Management Board Member

Ljubljana, 11 March 2025

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

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1. Deloitte revizija d.o.o.

Dunajska cesta 165 1000 Ljubljana Slovenia VAT ID: SI62560085 Tel: +386 (0) 1 3072 800 Fax: +386 (0) 1 3072 900 www.deloitte.si

The report below represents the auditor's report that relates solely and exclusively to the official annual report prepared in accordance with ESEF, in the XHTML format.

INDEPENDENT AUDITOR'S REPORT to the shareholders of ZAVAROVALNICA TRIGLAV, d.d.

Report on the Audit of the Separate and Consolidated Financial Statements

O p i n i o n

We have audited the separate financial statements of the company ZAVAROVALNICA TRIGLAV, d.d. (hereinafter 'the Company') and the consolidated financial statements of the company ZAVAROVALNICA TRGILAV, d.d. and its subsidiaries (hereinafter 'the Group'), which comprise the separate and the consolidated statement of financial position as at 31 December 202 4, and the separate and consolidated income statement, separate and consolidated statement of other comprehensive income, separate and consolidated statement of changes in equity, separate and consolidated cash flow statement for the year then ended, and notes to the separate and consolidated financial statements, including material accounting policy information .

In our opinion, the accompanying separate and consolidated financial statements present fairly, in all material respects, the financial position of the Company and the Group as at 31 December 202 4, and their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU (hereinafter 'IFRS').

B a s i s f o r O p i n i o n

We conducted our audit in accordance with International Standards on Auditing (ISAs) and Regulation (EU) 537/2014 of the European Parliament and of the Council, dated 16 April 2014, on specific requirements regarding statutory audit of public -interest entities (EU Regulation). Our responsibilities under those rules are further described in the Auditor's Responsibilities for the Audit of the Separate and Consolidated Financial Statements section of our report. We are independent of the Company and the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code) and other ethical requirements that are relevant to our audit of the separate and consolidated financial statements in Slovenia, and we have fulfilled our other ethical responsibilities in accordance with these

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL (also referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte provides industry -leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our people deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society, and a sustainable world. Building on its 175 -plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte's approximately 457,000 people worldwide make an impact that matters at www.deloitte.com.

In Slovenia, the services are provided by Deloitte revizija d.o.o and Deloitte svetovanje d.o.o. (jointly referred to as "Deloitte Slovenia") which are affiliates of Deloitte Central Europe Holdings Limited. Deloitte Slovenia is one of the leading professional services organizations in the country providing audit and assurance services, tax consulting, business consulting, financial advisory, and risk consulting through over 150 national and specialized expatriate professionals .

Deloitte revizija d.o.o. - The company is registered with the Ljubljana District Court, registration no. 1647105 - VAT ID SI62560085 - Nominal capital EUR 74,214.30. 0B9486F22C7FCAAC060FF330D608905C © 202 5. For information, contact Deloitte Slovenia.

requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter

We draw attention to Note 2.7 The merger of the subsidiary Triglav, Zdravstvena zavarovalnica, d.d in the separate and consolidated financial statements, which describes the effects of the merger of the subsidiary Triglav, Zdravstvena zavarovalnica to the parent Zavarovalnica Triglav, d.d. using retrospective approach in the Company's separate financial statements. Our opinion is not modified in respect of this matter.

Key Aud i t M a t t e r s

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate and consolidated financial statements of the year ended 31 December 202 4. These matters were addressed in the context of our audit of the separate and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Accounting policies for description of key assumptions, methodologies and models used in the calculation of
liabilities and income from insurance contracts are presented in Note 2.5.2 Insurance and reinsurance
contract assets and liabilities
. For other related disclosures please see Notes 3.1 Insurance business.
International Financial Reporting Standard 17
–
Insurance Contracts ('IFRS 17'), requires insurance
contracts, that meet the scoping criteria of the standard,
to be valued using the General Measurement Model (or
Building Block Approach - 'BBA'), the Variable Fee
Approach ('VFA'), or the Premium Allocation Approach
('PAA') all of which are used by the Company and the
Group. The measurement of liabilities from insurance
contracts as well as insurance income comprises the
present value of expected future cash flows, including
financial and non
-financial risks, with particular focus on
the expected margin (so
-called contractual service
margin 'CSM'), which will be recognized during the
period of contractual coverage.		 To address the risks associated with the valuation
of liabilities from insurance contracts and
insurance income identified as a key audit matter,
we designed audit procedures that enabled us to
obtain sufficient appropriate audit evidence for
our conclusion on that matter. Namely, we
performed the following audit procedures with
the use of our own information technology ('IT")
experts and actuarial experts:
Evaluation of internal controls
• Gaining an understanding of the control
environment and internal controls designed
by the Management in the process of
calculating liabilities from insurance contracts
The
company's and the
group's insurance liabilities as at
31 December 202
4, amount to EUR 1.982.613.699 (31
December 202
3: EUR 1.919.950.640
) and EUR
2.473.497.966 (31 December 202
3: EUR 2.330.647.605
)
respectively. The Company's and the Group's insurance
income for the year ended 31 December 202
4, amount
to EUR 911.051.366 (31 December 202
3:
EUR 792.319.901) and EUR 1.297.899.920 (31 December
202
3: EUR 1.157.910.703) respectively.		 and insurance income, including the
applications and information technology tool
used;
• Assessing the adequacy of the design and
verifying the implementation of the identified
internal controls relevant to the process of
valuation of liabilities from insurance
contracts and insurance income;
• Testing the operating effectiveness of
identified relevant internal controls on

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0B9486F22C7FCAAC060FF330D608905C

Valuation of liabilities from insurance contracts and
insurance income involves significant management		 valuation of liabilities from insurance
contracts and insurance income.
judgment when developing and using input data and
assumptions in the actuarial calculation model
s,		 Testing of actuarial models
dependent on the management's assumptions about
past, future, internal and external variables, the change
of which can result in a significant impact on the value of
these liabilities. There is also a high degree of complexity
due to the numerous assumptions and actuarial
valuation models applied. Some of the key assumptions
include risk adjustment, discount curves, inflation
forecasts, cost projection, mortality, longevity, lapse
assumptions, claims/cost ratios, coverage units and CSM
recognition pattern.
Given the pervasive complexities related to the
requirements of IFRS 17, we consider the valuation of
liabilities from insurance contracts and insurance income
as a key audit matter for our audit of the separate and
consolidated financial statements for the year 2024.		 • Testing the reliability and accuracy of actuarial
models used for the valuation of liabilities
from insurance contracts and insurance
income;
• Verification of the mathematical calculations,
logic, and appropriateness of model inputs
within the information technology tool used;
• Review and evaluating reasonableness of
projected cash flows and the reasonableness
of accepted assumptions and set scenarios in
the context of the experience of the
Company, the Group and the industry and
specific features of insurance products;
• Verification of consistency in the actuarial
models applied across various groups of
insurance contracts within the portfolios.
Assessment of management assumptions
• Challenging the appropriateness of key
technical accounting decisions, judgments,
assumptions and elections made in
determining the estimate against the
requirements of the standard;
• Reviewing sensitivity analyses to assess the
impact of changes in key assumptions on the
valuation of liabilities from insurance
contracts, emphasizing the contractual service
margin.
Testing of disclosures in the separate and
consolidated financial statements
• Evaluating the completeness and accuracy of
the disclosures in the notes to the separate
and consolidated financial statements with
respect to the requirements of IFRS 17.
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Investments in subsidiaries equal EUR 196.624.457
We have assessed the management's treatment
(202
3: EUR 195.624.458) in the separate financial
of indications of impairment of investments in
statements and are measured at cost less any
subsidiaries in the separate financial statements.
impairments. The management assesses indications of
The emphasis of our audit procedures was on
impairment of such investments at least on an annual
assessing and testing the key assumptions that
basis and performs impairment testing as necessary.
the management applied to define indications of
These procedures require management judgement.
impairment and to assess impairments.
Professional judgement and application of subjective
Our procedures included the following:
assumptions made by the management are necessary in
- checking and comparing the net assets of
order to assess indications of impairment.
an individual subsidiary with the value of
the investment in the separate financial
Investments in subsidiaries are subject to significant
statements as at 31 December 202
4
,
judgements and estimates. Due to that and because of
- assessing the assumptions applied to
the significance of the account balances in the separate
calculate discount rates and their
statement of financial position, we have considered
recalculation,
investments in subsidiaries as a key audit matter.
- reviewing the projected future cash flows
used by the Company to carry out
impairment tests,
- comparing the projected cash flows,
including the assumptions related to
revenue growth rates and operating
margins, against historical performance
to test the accuracy of previous
management estimates, and checking
other assumptions and estimates
included in the judgements,
- verifying the adequacy of disclosures in
the separate financial statements.
An auditor's expert took part in our procedures.		 Disclosures related to investments in subsidiaries are included in
(accounting policies) and Note 3.3 Investments in subsidiaries, associates and joint ventures (value and
assumptions).		 Note 2.5.5.1 Investments in subsidiaries

O t h e r i n f o r m a t i o n

Management is responsible for the other information. The other information comprises the information, included in Annual report, other than the separate and consolidated financial statements and our auditor's report thereon. We obtained other information before the date of the auditor's report, except for the report of the supervisory board, which will be available later.

Our opinion on the separate and consolidated financial statements does not cover the other information and we express no assurance thereon.

0B9486F22C7FCAAC060FF330D608905C

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0B9486F22C7FCAAC060FF330D608905C

In connection with our audit of the separate and consolidated financial statements, our responsibility is to read the other information and, in doing so, assess whether the other information is materially inconsistent with the separate and consolidated financial statements, legal requirement s, except those related to sustainability report which was subject of separate limited assurance report, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If based on our work performed we conclude that other information include material misstatement we need to report such circumstances. In relation to this and based on our procedures performed, we report that:

  • other information is, in all material respects, consistent with the audited separate and consolidated financial statements;
  • other information except sustainability report on which we issued separate limited assurance report dated 11 March 2025, is prepared in compliance with applicable law or regulation; and
  • based on our knowledge and understanding of the Company and the Group and their environment obtained in the audit, we did not identify any material misstatement of fact related to the other information.

R e s p o n s i b i l i t i e s o f M a n a g e m e n t a n d T h o s e C h a r g e d w i t h G o v e r n a n c e f o r t h e S e p a r a t e a n d C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s

Management is responsible for the preparation and fair presentation of the separate and consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of separate and consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate and consolidated financial statements of the Company and the Group, management is responsible for assessing their ability to continue as a going concern, disclosing matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company and the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's and the Group's financial reporting process.

A u d i t o r ' s R e s p o n s i b i l i t i e s f o r t h e A u d i t o f t h e S e p a r a t e a n d C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s

Our objectives are to obtain reasonable assurance about whether the separate and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate and consolidated financial statements.

As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the separate and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

  • procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's and the Group's internal controls.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
  • 0B9486F22C7FCAAC060FF330D608905C Obtain an understanding of internal control relevant to the audit in order to design audit • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the separate and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company or the Group to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the separate and consolidated financial statements, including the disclosures, and whether the separate and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
  • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, action taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate and consolidated financial statements of the current period, and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Report on the requirements of the Regulation (EU) No 537/2014 of the European Parliament and of the Council (Regulation EU 537/2014)

Confirmation to the Audit Committee

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

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We confirm that our audit opinion on the separate and consolidated financial statements expressed herein is consistent with the additional report to the Audit Committee in accordance with Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and the Council.

Prohibited Services

We confirm that no services referred to in the Article 5(1) of Regulation (EU) No. 537/2014 of the European Parliament and the Council were provided and that the audit company fulfilled independence requirements.

Other services performed by the audit company

There are no services, in addition to the statutory audit, which the audit company provided to the Company and its controlled undertakings, and which have not been disclosed in the Annual Report.

Appointment of the Auditor and responsible certified auditor

Deloitte revizija d.o.o. was appointed as the statutory auditor of the Company and the Group on General Shareholders' Meeting held on 24 May 2022, while the president of the Supervisory Board signed the audit contract on 26 May 2022. The audit contract was signed for 3 years. Our total uninterrupted engagement as statutory auditors has lasted since 21 June 2019.

Engagement partner responsible for the audit on behalf of Deloitte revizija d.o.o. is Barbara Žibret Kralj.

Auditor's Report on Compliance of Financial Statements in Electronic Form with the Commission Delegated Regulation (EU) No. 2019/815 on European Single Electronic Format (ESEF)

We undertook a reasonable assurance engagement on whether the separate and consolidated financial statements of the Company and the Group for the year ended 31 December, 2024 (hereinafter 'audited separate and consolidated financial statements ') are prepared taking into consideration the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Direc tive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format, valid for the year 2024 (hereinafter 'Delegated Regulation').

Responsibilities of Management and Those Charged with Governance

Management is responsible for the preparation and correct presentation of audited separate and consolidated financial statements in electronic form in accordance with the requirements of the Delegated Regulation and for such internal control as determined necessary by the management, to enable the preparation of separate and consolidated financial statements in electronic form that are free from material misstatement, whether due to fraud or error.

Those charged with governance are responsible for overseeing the preparation of audited separate and consolidated financial statements in electronic form in accordance with the requirements of the Delegated Regulation.

Auditor's Responsibility

0B9486F22C7FCAAC060FF330D608905C

Our responsibility is to carry out a reasonable assurance engagement and to express the conclusion on whether the audited separate and consolidated financial statements in electronic form are prepared in accordance with the requirements of the Delegated Regulation. We conducted our reasonable assurance engagement in accordance with the International Standard on Assurance Engagements 3000 (Revised) – Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000) published by the International Auditing and Assurance Standards Board. This standard requires that we plan and perform the engagement to obtain reasonable assurance for providing a conclusion.

We have conducted the engagement in compliance with independence and ethical requirements as provided by the Regulation EU No. 537/2014 and IESBA Code. The code is based on the principles of integrity, objectivity, professional competence and due diligence, confidentiality and professional conduct. We are in compliance with the International Standard on Quality Management (ISQM 1) and accordingly maintain an overall quality management system, including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and statutory requirements.

Summary of Work Performed

Within the scope of the work performed, we have carried out the following audit procedures:

  • we have identified and assessed the risk of material non-compliance of audited separate and consolidated financial statements misstatement with the requirements of the Delegated Regulation;
  • we have obtained understanding of the internal control processes considered important for our reasonable assurance engagement in order to design appropriate procedures in given circumstances, however, not with the purpose of expressing an opinion on the effectiveness of internal control;
  • we have assessed whether the audited separate and consolidated financial statements satisfy the conditions of Delegated Regulations, valid on the reporting date;
    • o we have obtained reasonable assurance that the audited separate and consolidated financial statements of the issuer are presented in the electronic XHTML format;
    • o we have obtained reasonable assurance that the values and disclosures in the audited consolidated financial statements in the electronic XHTML format are tagged correctly and in the Inline XBRL technology (iXBRL), so that their machine reading can ensure complete and correct information that is included in the audited consolidated financial statements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion .

Conclusion

In our opinion, based on the procedures performed and the evidence obtained we believe that the audited separate and consolidated financial statements of the Company and the Group for the year ended 31 December 202 4, are in all material respects prepared in accordance with the requirements of the Delegated Regulation.

DELOITTE REVIZIJA d.o.o.

Barbara Žibret Kralj Certified auditor

For signature please refer to the origina l Slovenia n version.

Ljubljana, 11 March 2025 TRANSLATION ONLY, SLOV E N E O R I G I N A L P R E V A I L S

0B9486F22C7FCAAC060FF330D608905C

155

1. Financial statements149

1.1 Statement of financial position

Statement of management's responsibilities
Independent auditor's report		 Triglav Group in EUR
Zavarovalnica Triglav
1. Financial statements Notes 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 adjusted* 1. 1. 2023 adjusted*
1.1 Statement of financial position ASSETS 4,538,330,535 4,099,028,699 3,273,829,367 2,998,918,684 2,813,366,207
1.2 Statement of profit or loss
1.3 Statement of other comprehensive income		 Property, plant and equipment 3.7.1 105,867,185 106,828,809 66,060,514 68,853,107 70,920,360
1.4 Statement of changes in equity Investment property 3.7.2 70,411,373 67,953,773 44,971,145 43,427,181 43,377,173
1.5 Cash flow statement Right-of-use assets 3.7.3 10,051,743 11,113,449 4,119,049 4,813,383 4,369,011
2. Notes to the financial statements
3. Notes to the specific significant items in		 Intangible assets and goodwill 3.7.4 53,361,912 54,656,306 28,451,322 31,039,279 31,295,721
the financial statements Deferred tax assets 3.7.5 14,239,505 21,967,548 12,796,824 19,166,719 13,035,369
4. Other information Investments in subsidiaries 0 0 196,624,457 195,624,458 181,631,957
Appendix Investments in associates and jointly controlled companies accounted for using the 3.3 55,621,373 37,708,062 55,059,388 37,218,841 37,369,536
equity method
Financial investments 3.4 3,040,591,870 2,642,840,770 2,261,370,605 1,955,647,480 1,959,726,933
– at fair value through other comprehensive income 1,911,560,385 1,672,966,932 1,301,734,118 1,161,179,788 1,220,117,377
– at amortised cost 222,568,437 229,559,727 143,875,820 142,843,306 151,767,345
– at fair value through profit or loss 906,463,048 740,314,111 815,760,667 651,624,386 587,842,211
Financial contract assets 3.5 755,007,158 674,115,145 290,843,831 259,624,041 234,968,514
– investments at amortised cost 245,995,862 283,215,425 77,040,081 86,215,285 99,398,022
– investments at fair value through profit or loss 493,515,077 366,826,746 207,542,830 169,625,986 131,403,313
– receivables from financial contracts 405,599 123,066 314,486 83,130 398,787
– cash from financial contracts 15,090,620 23,949,908 5,946,434 3,699,640 3,768,392
Insurance contract assets 3.1 19,841,107 12,093,878 14,432,147 10,959,726 7,395,480
Reinsurance contract assets 3.2 289,610,255 327,733,155 249,461,236 306,936,690 168,510,270
Non-current assets held for sale 3.7.6 49,390 3,129,709 0 1,141,578 0
Current corporate income tax assets 3.7.16 260,573 8,491,524 0 9,302,529 1,503,957
Other receivables 3.7.7 44,538,200 37,644,003 27,753,903 20,448,498 35,359,592
Cash and cash equivalents 3.7.8 68,951,079 84,420,667 18,165,321 31,906,343 21,111,319
Other assets 3.7.9 9,927,812 8,331,901 3,719,625 2,808,831 2,791,015
EQUITY AND LIABILITIES 4,538,330,535 4,099,028,699 3,273,829,367 2,998,918,684 2,813,366,207
Equity 3.7.10 989,042,206 891,099,983 741,642,739 682,526,257 691,858,436
Controlling interests 984,886,661 887,415,730 741,642,739 682,526,257 691,858,436
– share capital 73,701,392 73,701,392 73,701,392 73,701,392 73,701,392
– share premium 50,322,579 50,322,579 53,412,884 53,412,884 53,412,884
– treasury share reserves 364,680 364,680 0 0 0
– treasury share -364,680 -364,680 0 0 0
– other reserves from profit 560,947,903 505,102,982 534,616,604 485,616,604 466,616,604
– accumulated other comprehensive income -31,253,300 -37,415,983 -29,518,795 -30,153,273 -51,793,307
– retained earnings from previous years 259,193,767 306,091,948 60,198,757 104,730,894 203,780,821
Search in report – net profit or loss for the year 75,049,032 -7,192,538 49,231,897 -4,782,244 -53,859,958
– translation differences -3,074,712 -3,194,650 0 0 0
Non-controlling interests 4,155,545 3,684,253 0 0 0
Subordinated liabilities 3.7.11 152,130,399 49,994,402 152,130,399 49,994,402 49,941,796
Deferred tax liabilities 3.7.5 2,212,405 1,865,810 0 0 0
Financial contract liabilities 3.5 755,007,158 674,115,145 290,843,831 259,624,041 234,968,514
The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024 Insurance contract liabilities 3.1 2,473,497,966 2,330,647,605 1,982,613,699 1,919,950,640 1,732,053,911
Reinsurance contract liabilities 3.2 2,154,438 6,460,600 429,625 0 4,052,657
Search in report Provisions 3.7.12 25,996,131 30,347,485 14,878,394 16,023,250 18,117,857
Lease liabilities 3.7.3 10,656,690 11,665,333 4,302,797 5,033,767 4,491,124
Other financial liabilities 317,516 663,442 69,430 22,768 22,640
Current corporate income tax liabilities 3.7.16 5,633,245 571,555 2,360,480 0 9,697,471

Other liabilities 3.7.13 121,682,381 101,597,339 84,557,973 65,743,559 68,161,801

Business report

Accounting report

*The figures for the comparative period are adjusted for the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d., as described in Section 2.7.

Accounting report

Statement of management's responsibilities Independent auditor's report

1.2 Statement of profit or loss

Appendix

in EUR
Triglav Group Zavarovalnica Triglav
Notes 2024 2023 adjusted* 2024 2023 adjusted*
Insurance service result 159,668,243 82,217,202 129,154,926 59,321,919
– insurance income 3.1 1,297,899,920 1,157,910,703 911,051,366 792,319,901
– insurance service expenses 3.1 -997,300,760 -1,107,300,071 -651,239,341 -772,527,441
– net reinsurance service result 3.2 -140,930,917 31,606,570 -130,657,099 39,529,459
Investment result 3.4 159,746,576 86,556,798 134,861,313 69,821,254
– interest income calculated using the effective interest method 47,286,696 34,922,060 29,070,766 22,126,049
– dividend income 2,599,868 2,705,064 2,019,695 2,441,534
– net gains and losses on financial investments 103,459,972 49,437,626 98,758,150 43,819,372
– net impairment and reversal of impairment of financial investments 3,334,270 2,162,900 2,754,998 1,362,044
– other effects of investing activities 3,065,770 -2,670,852 2,257,704 72,255
Financial result from insurance contracts -118,428,159 -69,597,122 -110,015,438 -62,796,223
– financial result from insurance contracts 3.1 -124,991,075 -69,662,641 -115,748,853 -62,933,739
– financial result from reinsurance contracts 3.2 6,562,916 65,519 5,733,415 137,516
Income from asset management 3.7.14 49,364,063 39,685,486 3,158,050 2,854,726
Non-attributable operating expenses 3.6 -100,950,971 -91,124,574 -43,730,392 -39,651,436
Net other operating income and expenses 3.7.14 -8,138,587 1,051,073 -15,861,691 -46,756
Net other financial income and expenses 3.7.15 -7,300,418 -3,680,153 -7,006,800 -2,799,969
Net impairment and reversal of impairment of non-financial assets 3.3 -66,398 -2,515,516 -66,111 -2,502,745
Gains and losses on investments in associates 3.7.16 6,944,203 2,242,935 9,098,991 18,585,761
Net other income and expenses 2,055,945 4,000,176 1,843,908 750,491
EARNINGS BEFORE TAX FROM CONTINUING OPERATIONS 142,894,497 48,836,305 101,436,756 43,537,022
EARNINGS BEFORE TAX FROM DISCONTINUED OPERATIONS 16,147,704 -27,775,868 16,147,704 -27,775,868
Tax expense from continuing operations 3.7.17 -27,624,088 -10,298,619 -19,352,563 -7,046,775
Tax expense from discontinued operations 3.7.17 0 5,503,377 0 5,503,377
NET EARNINGS FOR THE PERIOD FROM CONTINUING OPERATIONS 115,270,409 38,537,686 82,084,193 36,490,247
NET EARNINGS FOR THE PERIOD FROM DISCONTINUED OPERATIONS 16,147,704 -22,272,491 16,147,704 -22,272,491
TOTAL NET EARNINGS FOR THE PERIOD 131,418,113 16,265,195 98,231,897 14,217,756
Net earnings per share (basic and diluted)150 5.76 0.71
– controlling interests 130,893,953 16,076,485
– non-controlling interests 524,160 188,710

* The figures for the comparative period were adjusted to reflect the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. and the reclassification of income and expenses from discontinued operations into the separate item »net earnings for the period from discontinued operations«. These two changes are further detailed in Sections 2.7 and 3.7.6.

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

1.3 Statement of other comprehensive income

in EUR
Triglav Group Zavarovalnica Triglav
Notes 2024 2023 adjusted* 2024 2023 adjusted*
TOTAL NET EARNINGS FOR THE PERIOD 131,418,113 16,265,195 98,231,897 14,217,756
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX FROM CONTINUING OPERATIONS 6,313,562 33,125,712 674,073 31,742,115
Items that will not be reclassified to profit or loss in future periods 230,350 2,819,594 256,381 2,581,505
– effects of equity instruments 346,321 4,411,447 258,519 4,332,776
– actuarial gains and losses related to employee benefits -144,838 -1,522,053 -31,908 -1,575,443
– other gains and losses that will not be reclassified to profit or loss 0 127,558 0 0
– tax on items that will not be reclassified to profit or loss 28,867 -197,358 29,770 -175,828
Items that may be reclassified to profit or loss in future periods 5,964,171 30,352,118 417,692 29,160,610
– effects of insurance contracts -25,712,354 -48,987,812 -20,285,725 -37,170,823
– effects of reinsurance contracts 1,955,207 3,647,394 1,427,411 4,091,190
– effects of debt instruments 30,857,492 80,059,376 19,280,482 66,691,229
– tax on items that may be reclassified to profit or loss -1,136,174 -4,366,840 -4,476 -4,450,986
Translation differences 119,041 -46,000 0 0
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX FROM DISCONTINUED OPERATIONS -2,979 1,545,820 -2,979 1,545,820
TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX 6,310,583 34,671,532 671,094 33,287,935
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX 137,728,696 50,936,727 98,902,991 47,505,691
Controlling interests 137,213,190 50,822,202
Non-controlling interests 515,506 114,525

* The figures for the comparative period were adjusted to reflect the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. and the reclassification of income and expenses from discontinued operations into the separate item »net earnings for the period from discontinued operations«. These two changes are further detailed in Sections 2.7 and 3.7.6.

Accounting report

Statement of management's responsibilities Independent auditor's report

the financial statements 4. Other information

Appendix

1.4 Statement of changes in equity

Reserves from profit
Triglav Group Share
capital		 Share
premium		 Contingency
reserves		 Legal and
statutory
reserves		 Treasury
share
reserves		 Treasury
shares		 Other
reserves
from profit		 Accumulated
other
comprehensive
income		 Retained
earnings		 Net profit
or loss		 Translation
differences		 Total
equity
attributable
to controlling
interests		 Equity
attributable to
non-controlling
interests		 TOTAL
As at 1 January 2024 73,701,392 50,322,579 640,340 20,306,674 364,680 -364,680 484,155,968 -37,415,983 306,091,948 -7,192,538 -3,194,650 887,415,730 3,684,253 891,099,983
Comprehensive income for the period after tax 0 0 0 0 0 0 0 6,162,683 36,616 130,893,953 119,938 137,213,190 515,506 137,728,696
– net profit 0 0 0 0 0 0 0 0 0 130,893,953 0 130,893,953 524,160 131,418,113
– other comprehensive income 0 0 0 0 0 0 0 6,162,683 36,616 0 119,938 6,319,237 -8,654 6,310,583
Dividend payment 0 0 0 0 0 0 0 0 -39,742,259 0 0 -39,742,259 -1,704 -39,743,963
Allocation of last year's net profit to retained earnings 0 0 0 0 0 0 0 0 -7,192,538 7,192,538 0 0 0 0
Allocation of net profit to reserves from profit 0 0 0 1,448,232 0 0 54,396,689 0 0 -55,844,921 0 0 0 0
Change in Group 0 0 0 0 0 0 0 0 0 0 0 0 -42,510 -42,510
As at 31 December 2024 73,701,392 50,322,579 640,340 21,754,906 364,680 -364,680 538,552,657 -31,253,300 259,193,767 75,049,032 -3,074,712 984,886,661 4,155,545 989,042,206

in EUR

Reserves from profit
Triglav Group Share
capital		 Share
premium		 Contingency
reserves		 Legal and
statutory
reserves		 Treasury
share
reserves		 Treasury
shares		 Other
reserves
from profit		 Accumulated
other
comprehensive
income		 Retained
earnings		 Net profit
or loss		 Translation
differences		 Total
equity
attributable
to controlling
interests		 Equity
attributable to
non-controlling
interests		 TOTAL
As at 1 January 2023 73,701,392 50,304,673 640,340 20,306,674 364,680 -364,680 460,886,946 -60,591,408 418,315,033 -67,037,486 -3,174,588 893,351,576 3,614,126 896,965,702
Comprehensive income for the period after tax 0 0 0 0 0 0 0 23,175,425 11,590,354 16,076,485 -20,062 50,822,202 114,525 50,936,727
– net profit 0 0 0 0 0 0 0 0 0 16,076,485 0 16,076,485 188,710 16,265,195
– other comprehensive income 0 0 0 0 0 0 0 23,175,425 11,590,354 0 -20,062 34,745,717 -74,185 34,671,532
Dividend payment 0 0 0 0 0 0 0 0 -56,775,954 0 0 -56,775,954 -1,135 -56,777,089
Allocation of last year's net profit to retained earnings 0 0 0 0 0 0 0 0 -67,037,485 67,037,485 0 0 0 0
Allocation of net profit to reserves from profit 0 0 0 0 0 0 23,269,022 0 0 -23,269,022 0 0 0 0
Change in Group 0 17,906 0 0 0 0 0 0 0 0 0 17,906 -43,263 -25,357
As at 31 December 2023 73,701,392 50,322,579 640,340 20,306,674 364,680 -364,680 484,155,968 -37,415,983 306,091,948 -7,192,538 -3,194,650 887,415,730 3,684,253 891,099,983

Search in report

Notes to the changes in Group's equity are included in Section 3.7.10.

in EUR

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

Reserves from profit
Zavarovalnica Triglav Share capital Share premium Legal and
statutory reserves		 Other reserves
from profit		 Accumulated other
comprehensive income		 Retained earnings Net profit or loss TOTAL
As at 1 January 2024 73,701,392 53,412,884 6,516,604 479,100,000 -30,153,273 104,730,894 -4,782,244 682,526,257
Comprehensive income for the period after tax 0 0 0 0 634,478 36,616 98,231,897 98,902,991
– net profit 0 0 0 0 0 0 98,231,897 98,231,897
– other comprehensive income 0 0 0 0 634,478 36,616 0 671,094
Dividend payment 0 0 0 0 0 -39,786,509 0 -39,786,509
Allocation of last year's net profit to retained earnings 0 0 0 0 0 -4,782,244 4,782,244 0
Allocation of net profit to reserves from profit 0 0 0 49,000,000 0 0 -49,000,000 0
As at 31 December 2024 73,701,392 53,412,884 6,516,604 528,100,000 -29,518,795 60,198,757 49,231,897 741,642,739
Reserves from profit
Zavarovalnica Triglav Share capital Share premium Legal and
statutory reserves		 Other reserves
from profit		 Accumulated other
comprehensive income		 Retained earnings Net profit or loss TOTAL
As at 1 January 2023 before the merger 73,701,392 53,412,884 4,662,643 460,100,000 -46,309,356 164,656,172 -51,274,590 658,949,145
Merger effect 0 0 1,853,961 0 -5,483,951 39,124,649 -2,585,368 32,909,291
As at 1 January 2023 after the merger 73,701,392 53,412,884 6,516,604 460,100,000 -51,793,307 203,780,821 -53,859,958 691,858,436
Comprehensive income for the period after tax 0 0 0 0 21,640,034 11,647,901 14,217,756 47,505,691
– net profit 0 0 0 0 0 0 14,217,756 14,217,756
– other comprehensive income 0 0 0 0 21,640,034 11,647,901 0 33,287,935
Dividend payment 0 0 0 0 0 -56,837,870 0 -56,837,870
Allocation of last year's net profit to retained earnings 0 0 0 0 0 -53,859,958 53,859,958 0
Allocation of net profit to reserves from profit 0 0 0 19,000,000 0 0 -19,000,000 0
As at 31 December 2023 73,701,392 53,412,884 6,516,604 479,100,000 -30,153,273 104,730,894 -4,782,244 682,526,257

Notes to the changes in Company's equity are included in Section 3.7.10.

in EUR

in EUR

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

1.5 Cash flow statement

** Exchange rate differences are already included in specific items.

Triglav Group in EUR
Zavarovalnica Triglav
2024 2023 adjusted* 2024 2023 adjusted*
A. CASH FLOWS FROM OPERATING ACTIVITIES
a. Net profit or loss 115,270,409 38,537,686 82,084,193 36,490,247
b. Adjustments:
– depreciation 27,360,504 25,346,177 18,671,937 18,297,002
– financial income/expenses from financial investments -164,444,166 -89,227,649 -134,831,160 -85,933,665
– income from investment property -7,443,381 -7,441,237 -6,479,919 -6,195,418
– gains/losses on the sale of property, plant and equipment, intangible assets and investment property -2,275,592 -889,656 -1,813,705 -635,138
– revaluation operating income/expenses 191,248 583,375 85,727 2,474,988
– other financial expenses 6,378,126 3,220,158 5,698,838 2,591,352
– change in other provisions 18,568,459 -8,075,224 16,812,440 -3,616,615
– corporate income tax excluding the change in deferred taxes 20,693,684 14,792,092 13,043,180 10,092,384
c. Net income before changes in net operating assets (a+b) 14,299,291 -23,154,278 -6,728,469 -26,434,863
Net change in insurance and reinsurance contracts 173,697,813 78,293,524 125,996,989 24,557,339
Change in other receivables and assets 17,156,300 -5,446,617 15,283,584 -3,608,301
Change in other liabilities -54,907,735 -5,871,321 -33,297,253 45,244,406
Paid corporate income tax -7,401,043 -29,461,595 -1,379,778 -29,086,293
d. Changes in net operating assets – operating items of the statement of financial position 128,545,335 37,513,991 106,603,542 37,107,151
e. Net cash flow from operating activities (c+d) 142,844,626 14,359,713 99,875,073 10,672,288
B. CASH FLOWS FROM INVESTING ACTIVITIES
a. Cash inflows from investing activities 1,173,051,450 725,388,382 793,215,448 483,845,564
Cash inflows from interest from investing activities 36,255,276 34,896,227 18,039,343 16,679,147
Cash inflows from dividends and profit sharing 2,597,424 2,767,739 4,241,671 18,895,609
Cash inflows from investment property 11,113,989 7,862,736 7,125,182 6,384,208
Cash inflows from the disposal of property, plant and equipment 483,575 2,610,538 724,902 1,018,709
Cash inflows from the disposal of financial investments 1,122,601,186 677,251,142 763,084,350 440,867,891
– cash outflows for the disposal of subsidiaries or other companies 9,315,500 0 9,315,500 0
– other cash outflows for the disposal of financial investments 1,113,285,686 677,251,142 753,768,850 440,867,891
b. Cash outflows from investing activities -1,384,075,332 -667,224,401 -962,656,243 -422,349,967
Cash outflows for the acquisition of intangible assets -12,976,699 -13,920,475 -8,715,223 -10,270,061
Cash outflows for the acquisition of property, plant and equipment -9,421,419 -7,475,198 -4,438,495 -5,035,728
Cash outflows for the purchase of investment property -2,644,825 -1,915,560 -2,015,578 -1,622,882
Cash outflows for the acquisition of financial investments -1,359,032,389 -643,913,168 -947,486,947 -405,421,296
– cash outflows for investments in subsidiaries and other companies -20,342,245 -25,352 -21,342,245 -13,992,500
– other cash outflows for the acquisition of financial investments -1,338,690,144 -643,887,816 -926,144,702 -391,428,796
c. Net cash flow from investing activities (a+b) -211,023,882 58,163,981 -169,440,795 61,495,597
C. CASH FLOWS FROM FINANCING ACTIVITIES
a. Cash inflows from financing activities 99,425,000 0 99,425,000 0
Cash inflows from long-term loans and bond issues 99,425,000 0 99,425,000 0
b. Cash outflows for financing activities -46,556,341 -63,489,354 -43,441,309 -60,692,909
Cash outflows for interest paid -2,908,642 -2,963,524 -2,355,890 -2,185,025
Cash outflows for payments of financial liabilities -3,903,736 -3,748,740 -1,298,910 -1,670,014
Cash outflows for dividend payments and other participation in profits -39,743,963 -56,777,090 -39,786,509 -56,837,870
c. Total cash flows from financing activities (a+b) 52,868,659 -63,489,354 55,983,691 -60,692,909
D. Opening balance of cash and cash equivalents 84,420,667 76,066,279 31,906,343 21,111,319
E. Net cash flow for the period from continuing operations -15,310,597 9,034,340 -13,582,031 11,474,976
F. Net cash flow for the period from discontinuing operations -158,991 -679,952 -158,991 -679,952
G. Closing balance of cash and cash equivalents 68,951,079 84,420,667 18,165,321 31,906,343

* The figures for the comparative period were adjusted to reflect the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. and the reclassification of income and expenses from discontinued operations into the separate item »net earnings for the period from discontinued operations«. These two changes are further detailed in Sections 2.7 and 3.7.6.

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Search in report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

2. Notes to the financial statements

2.1 Profile of Zavarovalnica Triglav and Triglav Group

2.1.1 About Zavarovalnica Triglav

Zavarovalnica Triglav, d.d. (hereinafter: Zavarovalnica Triglav or the Company or the controlling company) is a public limited company, with its head office at Miklošičeva 19 in Ljubljana, Slovenia. The Company is entered in the Companies Register at the Ljubljana District Court. The Triglav Group is the leading insurance and financial group in Slovenia and the Adria region as well as one of the leading groups in South-East Europe.

Its shares are listed on the Ljubljana Stock Exchange, under the ticker symbol ZVTG. The Company's largest shareholders are Zavod za pokojninsko in invalidsko zavarovanje Slovenije (Pension and Disability Insurance Institute of Slovenia) and Slovenski državni holding, d.d. (Slovenian Sovereign Holding), which on 31. December 2024 hold 34.45% and 28.09% of the share capital respectively.

Zavarovalnica Triglav is a composite insurance company that conducts life and non-life insurance business. In accordance with the Pension and Disability Insurance Act (ZPIZ-2), the Company also provides pension insurance and other ancillary services with regard to insurance products and pension funds in the framework of life insurance.

In the life insurance segment, the following funds, which are kept separately, operated in 2024:

  • Skupina kritnih skladov PDPZ (Triglav SVPI Guarantee Fund Group) (registration number 5063345032), which includes three guarantee funds, within which the lifecycle investment policy is implemented. The pension schemes for group supplemental voluntary pension insurance with the designations PN–ZT–01/21-3, PN–ZT–03/21-3 and PN–ZT–05/21-3 and for individual supplemental voluntary pension insurance with the designations PN–ZT–02/21-3, PN–ZT–04/21-3 and PN–ZT–06/21-3 are implemented in all three guarantee funds. The following guarantee funds operate in Skupina kritnih skladov PDPZ:
    • Triglav PDPZ zajamčeni guarantee fund (registered number 5063345029);
    • Triglav PDPZ zmerni guarantee fund (registered number 5063345030);
    • Triglav PDPZ drzni guarantee fund (registered number 5063345031);
  • PDPZ guarantee fund in the period of pension annuity payout renta 1 (registered number 5063345028);
  • PDPZ guarantee fund in the period of pension annuity payout renta 2 (registered number 5063345033);
  • Unit-linked fund where policyholders bear investment risk (registered number 5063345023).

The Company manages the assets of Skupina kritnih skladov PDPZ separately from the assets of other guarantee funds and from the Company's other assets. These assets belong to the policyholders and can only be utilised by the Company to fulfill the contractual obligations related to supplemental voluntary pension insurance. The value of these assets and liabilities is presented in detail in Section 3.5.

The unit-linked assets of the guarantee fund are also managed separately from the Company's assets. The value of these assets and their returns are presented in detail in Section 3.4.

The manager of the Triglav PDPZ – zmerni and Triglav PDPZ – drzni guarantee funds is Triglav Skladi d.o.o., while the rest of the aforementioned guarantee funds are managed by Zavarovalnica Triglav. Custodial services are provided by the custodial bank.

The Company has a branch in Greece under the name Zavarovalnica Triglav, d.d. – Greek Branch.

2.1.2 Management and supervisory bodies

The Company has a two-tier governance system, according to which it is managed by the Management Board whose work is monitored and supervised by the Supervisory Board. The Company's management and supervisory bodies are the General Meeting of Shareholders, the Supervisory Board and the Management Board, and the following Supervisory Board committees: the Audit Committee, the Appointment and Remuneration Committee, the Strategy Committee and the Nomination Committee.

In accordance with the Articles of Association, Zavarovalnica Triglav has a nine-member Supervisory Board, whose members in 2024 were:

  • Andrej Andoljšek, Chairman,
  • Tim Umberger, Vice Chairman,
  • Barbara Nose, Member,
  • Tomaž Benčina, Member,
  • Monica Cramer Manhem, Member,
  • Rok Ponikvar, Member,
  • Aleš Košiček, Member Employee Representative and
  • Janja Strmljan Čevnja, Member Employee Representative.

The Management Board directs, represents and acts on behalf of Zavarovalnica Triglav, independently and on its own responsibility. In compliance with the Articles of Association, the Supervisory Board appoints three to six Management Board members.

In 2024, the Management Board was composed of:

  • Andrej Slapar, President,
  • Uroš Ivanc, Member,
  • Tadej Čoroli, Member,
  • Marica Makoter, Member and
  • Blaž Jakič, Member.

The powers of individual bodies are set out in the Companies Act (ZGD-1), and they are defined in greater detail in the Company's Articles of Association and the rules of procedure of individual bodies.

It is the responsibility of the Management Board to compile and approve the annual report. The audited annual report is approved by the Supervisory Board. In the event that the Supervisory Board fails to approve the annual report, the General Meeting of Shareholders decides on the adoption of the annual report.

163

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Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

The Management Board approved the audited annual report for the financial year ended

31 December 2024 on 11 March 2025. The annual report is published on the Company's website (www.triglav.eu).

2.1.3 Data on employees

In 2024, the Group employed an average of 5,088 employees (2023: 5,190), of which 2,197 were employees of Zavarovalnica Triglav (2023: 2,315).

As at 31 December 2024, the Group employed 5,204 employees (31 December 2023: 5,318), of which 2,223 were employees of Zavarovalnica Triglav (31 December 2023: 2,349).

The number of employees within the Group and at Zavarovalnica Triglav based on their level of education is shown in the table below.

Triglav Group Zavarovalnica Triglav
Education level 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
2–5 Upper secondary or general education or below 2,050 2,181 701 768
6/1 First-cycle education/professional higher education 536 521 335 365
6/2 First-cycle educationć98 779 824 489 503
7 Second-cycle education 1,603 1,552 598 601
8/1 Third-cycle education/master's degree in science 215 218 92 103
8/2 Third-cycle education/doctoral degree in science 21 22 8 9
TOTAL 5,204 5,318 2,223 2,349
Number of employees (full time equivalent) 5,088 5,190 2,197 2,315

2.1.4 About the Triglav Group

Zavarovalnica Triglav is the controlling company of the Triglav Group (hereinafter: the Group), therefore, in addition to the separate financial statements of the Company, it also compiles the consolidated financial statements of the Group.

The Group's two key strategic business segments are insurance and asset management. The Triglav Group is the leading insurance and financial group in Slovenia and the Adria region as well as one of the leading groups in South-East Europe.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

2.1.4.1 Triglav Group subsidiaries151

EQUITY STAKE (in %) SHARE OF VOTING RIGHTS (in %)
COMPANY ADDRESS TAX RATE (in %) ACTIVITY 2024 2023 2024 2023
Pozavarovalnica Triglav RE, d.d. Miklošičeva cesta 19, Ljubljana, Slovenia 22 Reinsurance 100 100 100 100
Triglav Osiguranje, d.d., Zagreb Antuna Heinza 4, Zagreb, Croatia 18 Insurance 100 100 100 100
Triglav Osiguranje, d.d., Sarajevo Dolina 8, Sarajevo, Bosnia and Herzegovina 10 Insurance 97.78 97.78 98.87 98.87
Lovćen Osiguranje, a.d., Podgorica Ulica slobode 13a, Podgorica, Montenegro 9-15 Insurance 99.07 99.07 99.07 99.07
Lovćen životna osiguranja, a.d., Podgorica Ulica Marka Miljanova 29/III, Podgorica, Montenegro 9-15 Insurance 99.07 99.07 99.07 99.07
Triglav Osiguranje, a.d.o., Belgrade Milutina Milankovića 7a, Belgrade, Serbia 15 Insurance 100 100 100 100
Triglav Osiguranje, a.d., Banja Luka Ulica Prvog krajiškog korpusa 29, Banja Luka, Bosnia and Herzegovina 10 Insurance 97.78 97.78 100 100
Triglav Osiguruvanje, a.d., Skopje Bulevar 8-mi Septemvri br. 16, Skopje, North Macedonia 10 Insurance 82.01 82.01 82.01 82.01
Triglav Osiguruvanje Život, a.d., Skopje Bulevar 8-mi Septemvri br. 18, Skopje, North Macedonia 10 Insurance 97.43 97.43 97.43 97.43
Triglav penzisko društvo, a.d., Skopje Bulevar 8-mi septemvri br. 18, Skopje, North Macedonia 10 Fund management 100 100 100 100
Triglav, pokojninska družba, d.d. Dunajska cesta 22, Ljubljana, Slovenia 22 Fund management 100 100 100 100
Triglav INT, d.o.o. Dunajska cesta 22, Ljubljana, Slovenia 22 Holding company 100 100 100 100
Triglav international, d.o.o., Belgrade Milutina Milankovića 7a, Belgrade, Serbia 15 Holding company 100 - 100 -
Triglav Skladi, d.o.o. Dunajska cesta 20, Ljubljana, Slovenia 22 Fund management 100 100 100 100
Triglav Avtoservis, d.o.o. Verovškova 60b, Ljubljana, Slovenia 22 Maintenance and repair of motor vehicles 100 100 100 100
Triglav Svetovanje, d.o.o. Ljubljanska cesta 86, Domžale, Slovenia 22 Insurance agency 100 100 100 100
Triglav, Upravljanje nepremičnin, d.o.o. Dunajska cesta 22, Ljubljana, Slovenia 22 Real estate management 100 100 100 100
Triglav Savjetovanje, d.o.o., Sarajevo Dolina 8, Sarajevo, Bosnia and Herzegovina 10 Insurance agency 97.78 97.78 98.87 98.87
Triglav Savjetovanje, d.o.o., Zagreb, u likvidaciji Sarajevska cesta 60, Zagreb, Croatia 18 Insurance 100 100 100 100
Triglav Savetovanje, d.o.o., Belgrade, u likvidaciji Zelengorska 1g, Belgrade, Serbia 15 Insurance agency 100 100 100 100
Autocentar BH, d.o.o., Sarajevo Džemala Bijedića 165b, Sarajevo, Bosnia and Herzegovina 10 Maintenance and repair of motor vehicles 97.78 97.78 98.87 98.87
Sarajevostan, d.o.o., Sarajevo Bulevar Meše Selimovića 12, Sarajevo, Bosnia and Herzegovina 10 Real estate management 90.95 90.95 91.97 91.97
Lovćen auto, d.o.o., Podgorica Novaka Miloševa 6/2, Podgorica, Montenegro 9-15 Maintenance and repair of motor vehicle 99.07 99.07 99.07 99.07
Triglav upravljanje nekretninama, d.o.o., Zagreb Ulica Josipa Marohnića 1/1, Zagreb, Croatia 18 Real estate management 100 100 100 100
Triglav upravljanje nekretninama, d.o.o., Podgorica Džordža Vašingtona 44, Podgorica, Montenegro 9-15 Real estate management 100 100 100 100
Triglav upravljanje nekretninama, d.o.o., Sarajevo Branilaca Sarajeva 45, Sarajevo, Bosnia and Herzegovina 10 Real estate management 100 100 100 100
Triglav upravuvanje so nedvižen imot DOOEL, Skopje Dame Gruev br. 8, Skopje, North Macedonia 10 Real estate management 100 100 100 100
Triglav Fondovi, d.o.o., Sarajevo Ulica Mehmed-paše Sokolovića br. 15, Sarajevo, Bosnia and Herzegovina 10 Fund management 63.58 62.54 63.20 62.54
Triglav zdravje asistenca, d.o.o., Ljubljana Dunajska cesta 22, Ljubljana, Slovenia 22 Other human health activities 100 100 100 100
Eskulap, d.o.o., Ljubljana Redelonghijeva ulica 12, 1000 Ljubljana, Slovenia 22 Other human health activities 100 - 100 -
Zavod Vse bo v redu, Ljubljana Miklošičeva cesta 19, Ljubljana, Slovenia 22 Corporate Social Responsibility Institute 100 100 100 100

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Statement of management's responsibilities Independent auditor's report 1. Financial statements

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Appendix

COMPANY 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Pozavarovalnica Triglav Re, d.d., Ljubljana 400,898,364 410,277,992 287,729,355 311,869,723 113,169,009 98,408,269 261,913,759 239,043,151 13,310,276 5,063,016
Triglav Osiguranje, d.d., Zagreb 195,912,937 190,787,223 154,028,406 148,449,013 41,884,531 42,338,210 81,707,111 84,943,388 -1,391,860 -3,858,646
Triglav Osiguranje, d.d., Sarajevo 93,309,597 83,912,383 66,302,049 57,836,201 27,007,548 26,076,182 31,496,604 27,895,911 1,924,368 1,118,581
Lovćen Osiguranje, a.d., Podgorica 56,803,287 52,294,433 33,042,170 31,236,313 23,761,117 21,058,120 39,590,395 36,621,259 1,710,059 2,347,486
Lovćen životna osiguranja, a.d., Podgorica 11,464,936 9,446,837 5,877,503 5,258,146 5,587,433 4,188,691 5,772,200 3,775,689 1,187,061 -513,512
Triglav Osiguranje, a.d.o., Belgrade 111,008,081 88,533,209 76,726,294 58,802,788 34,281,787 29,730,421 100,474,435 87,703,848 3,364,382 1,799,380
Triglav Osiguranje, a.d., Banja Luka 14,268,271 14,680,050 8,837,858 9,757,036 5,430,413 4,923,014 7,321,704 7,479,431 411,045 174,676
Triglav Osiguruvanje, a.d., Skopje 44,619,019 42,735,186 28,380,763 28,093,194 16,238,256 14,641,992 25,100,486 24,282,618 1,595,677 884,217
Triglav Osiguruvanje Život, a.d., Skopje 19,586,764 14,700,851 12,553,004 8,131,485 7,033,760 6,569,366 2,912,250 2,892,862 369,491 88,221
Triglav penzisko društvo, a.d., Skopje 4,815,634 3,938,167 327,193 192,283 4,488,441 3,745,884 1,167,439 817,338 -275,526 -426,828
Triglav, pokojninska družba, d.d., Ljubljana 535,422,717 482,831,854 467,329,985 419,510,811 68,092,732 63,321,043 6,823,237 8,185,363 3,803,677 4,599,439
Triglav INT, d.o.o., Ljubljana 77,855,834 78,123,520 26,832 41,280 77,829,003 78,082,240 1,013 0 -253,237 -274,458
Triglav international, d.o.o., Belgrade 492,923 - 12,826 - 480,097 - 0 - -32,882 -
Triglav Skladi, d.o.o., Ljubljana 72,589,314 61,691,354 8,299,299 8,213,384 64,290,016 53,477,970 40,927,471 32,001,410 10,793,372 8,538,042
Triglav Avtoservis, d.o.o., Ljubljana 1,665,896 1,752,461 1,387,153 1,570,356 278,743 182,105 4,150,687 4,352,568 103,061 35,097
Triglav Svetovanje, d.o.o., Domžale 2,245,456 2,303,025 1,650,017 1,743,216 595,439 559,809 6,724,721 6,598,254 46,836 133,639
Triglav, Upravljanje nepremičnin, d.o.o., Ljubljana 28,753,471 29,406,172 2,920,908 2,585,146 25,832,563 26,821,026 4,327,784 4,718,872 229,021 1,214,903
Triglav Savjetovanje, d.o.o., Sarajevo 212,519 259,436 180,623 239,082 31,896 20,354 698,266 659,638 11,542 10,445
Triglav Savjetovanje, d.o.o., Zagreb, u likvidaciji 81,498 99,470 0 15,130 81,498 84,340 20,945 377,373 -2,841 -67,811
Triglav Savetovanje, d.o.o., Belgrade, u likvidaciji 112,863 85,345 5,666 56,631 107,197 28,714 546,252 656,700 78,332 -4,296
Autocentar BH, d.o.o., Sarajevo 2,862,831 2,833,784 752,296 769,430 2,110,535 2,064,354 1,800,280 1,758,383 97,310 71,795
Sarajevostan, d.o.o., Sarajevo 1,965,628 1,891,436 665,924 634,805 1,299,704 1,256,631 2,016,618 2,006,984 78,285 75,198
Lovćen auto, d.o.o., Podgorica 5,585,210 5,009,689 1,829,395 1,585,356 3,755,816 3,424,333 3,175,403 2,433,506 331,483 38,993
Triglav upravljanje nekretninama, d.o.o., Zagreb 498,955 523,837 5,698 731 493,257 523,106 29,463 101,531 -29,849 67,074
Triglav upravljanje nekretninama, d.o.o., Podgorica 507,985 619,201 5,417 80,022 502,569 539,179 27,657 26,861 -36,610 -57,408
Triglav upravljanje nekretninama, d.o.o., Sarajevo 1,219,024 1,255,589 49,241 300,675 1,169,783 954,914 335,820 77,346 214,869 -30,270
TRIGLAV upravuvanje so nedvižen imot DOOEL, Skopje 584,698 3,194 2,994 0 581,704 3,194 5,519 0 -37,371 -1,800
Triglav Fondovi, d.o.o., Sarajevo 4,544,849 4,156,529 140,062 72,903 4,404,787 4,083,626 163,314 99,589 363,664 -77,658
Triglav zdravje asistenca, d.o.o., Ljubljana 4,130,901 3,714,997 1,584,448 1,169,220 2,546,453 2,545,777 3,685,663 1,069,491 676 47,777
Eskulap, d.o.o., Ljubljana 853,731 - 533,493 - 320,238 - 58,533 - -129,415 -
Zavod Vse bo v redu 157,016 240,727 14,191 10,593 142,825 230,135 113,712 182,256 -87,310 131,020

ASSETS LIABILITIES EQUITY TOTAL INCOME NET PROFIT/LOSS

The table shows the data before the elimination of intercompany transactions and other consolidation adjustments.

2.1.4.2 Condensed financial statements of the Triglav Group companies

165

in EUR

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

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NON-CONTROLLING INTEREST IN CAPITAL
(in %)		 VOTING RIGHTS OF NON-CONTROLLING INTERESTS
(in %)		 NET PROFIT OR LOSS ATTRIBUTABLE TO
NON-CONTROLLING INTEREST HOLDERS (in EUR)		 RETAINED EARNINGS ATTRIBUTABLE TO
NON-CONTROLLING INTEREST HOLDERS (in EUR)
COMPANY 2024 2023 2024 2023 2024 2023 2024 2023
Triglav Osiguranje d.d., Sarajevo 2.22 2.22 1.13 1.13 42,721 26,536 435,637 414,294
Triglav Osiguruvanje a.d., Skopje 17.99 17.99 17.99 17.99 287,062 159,072 1,694,049 1,407,360
Lovćen Osiguranje a.d., Podgorica 0.93 0.93 0.93 0.93 15,904 21,832 597,214 572,076
Lovćen životna osiguranja a.d., Podgorica 0.93 0.93 0.93 0.93 11,040 -4,776 98,460 85,452
Triglav Osiguranje a.d., Banja Luka 2.22 2.22 0.00 0.00 9,125 3,878 15,100 3,836
Triglav Savjetovanje d.o.o., Sarajevo 2.22 2.22 1.13 1.13 256 232 -18,975 -19,230
Autocentar BH d.o.o., Sarajevo 2.22 2.22 1.13 1.13 2,160 1,594 -141,626 -142,651
Lovćen auto d.o.o., Podgorica 0.93 0.93 0.93 0.93 3,083 363 -395,050 -398,132
Triglav Osiguruvanje Život a.d., Skopje 2.57 2.57 2.57 2.57 9,499 2,268 6,095 -5,769
Sarajevostan d.o.o., Sarajevo 9.05 9.05 8.03 8.03 7,081 6,801 241,188 237,293

Triglav Fondovi d.o.o., Sarajevo 36.42 37.46 36.80 37.46 136,229 -29,090 1,623,453 1,529,724 TOTAL 524,160 188,710 4,155,545 3,684,253

The two Group companies holding a significant non-controlling interest are Triglav Osiguruvanje, a.d., Skopje and Triglav Fondovi, d.o.o., Sarajevo. Their key financial information is presented below.

2.1.4.3 Non-controlling interests in the Triglav Group companies

in EUR
Triglav Osiguruvanje a.d., Skopje Triglav Fondovi d.o.o., Sarajevo
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
CONDENSED BALANCE SHEET
Current assets 1,392,873 2,549,100 283,317 245,596
Current liabilities 1,907,469 2,018,497 140,062 72,823
Net current assets/liabilities -514,596 530,603 143,255 172,773
Non-current assets 43,226,146 40,186,086 4,261,532 3,910,933
Non-current liabilities 26,473,294 26,074,697 0 80
Net non-current assets/liabilities 16,752,852 14,111,389 4,261,532 3,910,853
Net assets 16,238,256 14,641,992 4,404,787 4,083,626
2024 2023 2024 2023
CONDENSED COMPREHENSIVE INCOME
Net profit or loss for the year 1,595,677 884,217 363,664 -77,658
Other comprehensive income 589 -136,212 0 0
Total comprehensive income 1,596,266 748,005 363,664 -77,658

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

    1. Notes to the financial statements
  • 2.1 Profile of Zavarovalnica Triglav and Triglav Group
  • 2.2 Bases for the preparation of financial statements
  • 2.3 Bases for consolidation
  • 2.4 Foreign currency translation
  • 2.5 Significant accounting policies
  • 2.6 Significant accounting judgments, estimates and assumptions
  • 2.7 The merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d.
  • 2.8 Risk management
  • 2.9 Segment reporting
  • 2.10 The impact of geopolitical risks, the changed economic situation and climate change on the Group's and the Company's financial statements
  • 2.11 Tax policy
  • 2.12 The impact of new or amended standards on the preparation of financial statements
    1. Notes to the specific significant items in the financial statements
    1. Other information

Appendix

2.1.4.4 Associates and joint ventures of the Group and the Company

COMPANY ADDRESS TAX RATE (in%) ACTIVITY
KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH Tölzer Str. 15 82031, Grünwald, Nemčija 16 Real estate management
Triglavko, d.o.o., Ljubljana Ulica XXX. divizije 23, Nova Gorica, Slovenija 22 Insurance agency
TRIGAL, upravljanje naložb in svetovanje, d.o.o., Ljubljana Dunajska cesta 22, Ljubljana, Slovenija 22 Management of financial funds
Društvo za upravljanje EDPF, a.d., Banja Luka Kralja Petra I Karađorđevića 109/III Banja Luka, Bosnia and Herzegovina 10 Fund management
Diagnostični center Bled, d.o.o., Bled Pod Skalo 4, Bled, Slovenija 22 Health
Alifenet, d.o.o., Ljubljana Dunajska cesta 22, Ljubljana, Slovenija 22 Fund management
Triglav Group Zavarovalnica Triglav
SHARE IN CAPITAL
(in %)		 VOTING RIGHTS
(in %)		 INVESTMENT VALUE
(in EUR)		 SHARE in CAPITAL
(in %)		 VOTING RIGHTS
(in %)		 INVESTMENT VALUE
(in EUR)
COMPANY 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Nama, d.d. 0.00 39.15 0.00 39.15 0 4,648,981 0.00 39.07 0.00 39.07 0 4,648,981
KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH 24.90 - 24.90 - 20,394,242 - 24.90 - 24.90 - 20,394,242 -
Triglavko, d.o.o. 38.47 38.47 38.47 38.47 4,519 18,509 38.47 38.47 38.47 38.47 4,519 18,509
TRIGAL, d.o.o. 49.90 49.90 49.90 49.90 11,319,552 10,925,240 49.90 49.90 49.90 49.90 11,319,552 10,925,240
Društvo za upravljanje EDPF, a.d. 34.00 34.00 34.00 34.00 561,985 489,221 0.00 0.00 0.00 0.00 0 0
Diagnostični center Bled, d.o.o. 40.10 40.10 40.10 40.10 23,341,075 21,560,000 40.10 40.10 40.10 40.10 23,341,075 21,560,000
Alifenet, d.o.o. 23.58 23.58 23.58 23.58 0 66,111 23.58 23.58 23.58 23.58 0 66,111
TOTAL 55,621,373 37,708,062 55,059,388 37,218,841
in EUR
ASSETS LIABILITIES EQUITY REVENUES PROFIT/LOSS
COMPANY 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Nama, d.d. - 13,526,992 - 1,904,376 - 11,622,617 - 11,850,849 - 475,421
KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH 24,763,485 - 45,321 - 24,718,164 - 346,648 - 182,352 -
Triglavko, d.o.o. 150,266 133,878 100,704 47,948 49,562 85,930 354,437 369,996 -36,368 2,609
TRIGAL, d.o.o. 24,609,552 23,869,050 1,172,049 1,116,764 23,437,503 22,752,286 2,073,633 1,606,473 683,724 91,341
Društvo za upravljanje EDPF, a.d. 1,681,285 1,473,860 45,623 52,182 1,635,661 1,421,679 582,207 472,669 214,010 142,863
Diagnostični center Bled, d.o.o. 55,109,003 53,315,370 18,753,609 20,527,899 36,355,394 32,787,471 38,589,636 36,383,549 3,562,149 3,925,069

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
Diagnostični center Bled d.o.o. KATERA, mbh TRIGAL, d.o.o. Nama, d.d.
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31.12.2024 31.12.2023
CONDENSED BALANCE SHEET
Current assets 9,518,726 7,704,159 395,828 0 4,613,908 2,945,650 0 7,263,214
Current liabilities 6,978,668 7,764,634 45,321 0 361,776 344,565 0 1,467,430
Net current assets/liabilities 2,540,058 -60,475 350,507 0 4,252,133 2,601,085 0 5,795,784
Non-current assets 45,590,277 45,611,212 24,367,656 0 19,995,644 20,923,400 0 6,263,778
Non-current liabilities 11,774,942 12,763,266 0 0 810,274 772,199 0 436,946
Net non-current assets/liabilities 33,815,335 32,847,946 24,367,656 0 19,185,370 20,151,201 0 5,826,832
Net assets 36,355,393 32,787,471 24,718,163 0 23,437,503 22,752,286 0 11,622,616
2024 2023 2024 2023 2024 2023 2024 2023
CONDENSED COMPREHENSIVE INCOME
Net profit or loss for the year 3,562,149 3,925,069 182,352 0 683,724 91,341 0 475,421
Other comprehensive income 0 0 0 0 0 0 0 73,644
Total comprehensive income 3,562,149 3,925,069 182,352 0 683,724 91,341 0 549,065
Dividends from associates for the year 0 0 0 0 0 0 0 63,345

Presented below are the condensed balance sheet and comprehensive income for material investments in associates.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Appendix

2.1.4.5 Changes in the structure of the Triglav Group in 2024

Sale of the participating interest in Nama d.d.

Zavarovalnica Triglav d.d., sold its 39.07% participating interest in Nama d.d., generating gains on disposal of EUR 4,666,520 in the separate and consolidated financial statements.

Purchase of a participating interest in KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH

Zavarovalnica Triglav d.d. acquired a 24.9% participating interest in KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH. The company is accounted for using the equity method in both the separate and consolidated financial statements.

Capital increase of Triglav, upravuvanje so nedvižen imot DOOEL Skopje

Triglav, Upravljanje nepremičnin d.o.o., Ljubljana increased the capital of the subsidiary Triglav, upravuvanje so nedvižen imot DOOEL Skopje, in the amount of MKD 37,927,736 or EUR 616,000. The capital increase was raised through an in-cash contribution. Triglav, Upravljanje nepremičnin d.o.o. remained a 100% owner of said company. The capital increase had no impact on the Triglav Group's consolidated financial statements.

Purchase of a participating interest in Eskulap, družba za zdravstvene storitve d.o.o.

Triglav zdravje asistenca d.o.o. acquired a 100% participating interest in Eskulap, družba za zdravstvene storitve d.o.o. In Q2 2024, the company was included for the first time in the Group's consolidated financial statements under the full consolidation method. The first consolidation had no significant impact on the Triglav Group's consolidated financial statements.

Capital increase of Triglav penzisko društvo a.d., Skopje

Zavarovalnica Triglav d.d. increased the capital of Triglav penzisko društvo a.d., Skopje with an in-cash contribution of MKD 61,495,000 or EUR 1,000,000, thus remaining a 100% owner of said company. The capital increase had no impact on the Triglav Group's consolidated financial statements.

Merger of Triglav, Zdravstvena zavarovalnica d.d.

In October 2024, the procedure for the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. with the parent company Zavarovalnica Triglav d.d. was completed. The capital share of Triglav, Zdravstvena zavarovalnica d.d. in Triglav zdravje asistenca, družba za zdravstveno dejavnost d.o.o. was transferred to the parent company Zavarovalnica Triglav d.d. at the date of the merger. The effect of the merger and the change in ownership had no impact on the Triglav Group's consolidated financial statements.

The effects of the merger on Zavarovalnica Triglav d.d.'s separate financial statements are presented in Section 2.7.

Establishment of Triglav INT d.o.o., Belgrade

Triglav INT, holdinška družba d.o.o., Ljubljana established the subsidiary Triglav INT d.o.o., Belgrade, in which it holds a 100% participating interest. The new company is included in the Group's consolidated financial statements under the full consolidation method.

Investment funds not consolidated by the Triglav Group

The Group does not consolidate investments in investment funds at any time:

  • It does not have direct control over the business decisions of the investment fund;
  • The investment fund manager makes business decisions independently of the investor and within the framework of the accepted offering document;
  • The fund's offering document includes a clearly defined investment objective and strategy, as well as a clearly defined type of investments and investment limits.

The table below shows the alternative investment funds held by the Group and the Company as at 31 December 2024, which are not consolidated.

in EUR

in EUR

Zavarovalnica Triglav d.d. Triglav Osiguranje d.d., Zagreb Triglav, pokojninska družba d.d., Ljubljana Triglav Group Net asset value (NAV)
of the fund		 Triglav Group's share of
the fund's net asset value
Trigal Infrastructure Fund, Alternative Investment Fund 2,401,440 0 0 2,401,440 2,401,500 100.0%
Trigal Alternative Investment Fund,SICAV–RAIF S.C.A. 14,401,604 1,278,952 2,043,006 17,723,562 48,654,700 36.4%
Trigal RE Fund, Alternative Investment Fund 3,823,875 0 3,823,763 7,647,638 15,295,000 50.0%
TOTAL 20,626,919 1,278,952 5,866,769 27,772,640
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Carrying amount as at 31 Dec 2023
Zavarovalnica Triglav d.d. Triglav Osiguranje d.d., Zagreb Triglav, pokojninska družba d.d., Ljubljana Triglav Group Net asset value (NAV)
of the fund		 Triglav Group's share of
the fund's net asset value
Trigal Alternative Investment Fund,SICAV–RAIF S.C.A. 12,819,187 1,138,423 1,820,863 15,778,474 47,139,300 33.5%
Trigal RE Fund, Alternative Investment Fund 3,736,875 0 3,736,838 7,473,713 14,877,500 50.3%
TOTAL 16,556,062 1,138,423 5,557,700 23,252,186

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

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2.2 Bases for the preparation of financial statements

2.2.1 Statement of compliance

The Group's consolidated financial statements and the Company's separate financial statements for the financial year ended 31 December 2024 were prepared in accordance with International Financial Reporting Standards (hereinafter: IFRS) as adopted by the EU.

The Group's and the Company's financial statements were also prepared in accordance with the requirements of the Companies Act (ZGD-1), the Insurance Act (ZZavar-1) and its implementing regulations.

2.2.2 Bases for measurement and classification

The financial statements were prepared under the going concern assumption and taking into account the requirements of adequacy, reliability, comprehensibility and comparability of financial information. Furthermore, they were compiled on the historical cost or amortised cost basis, except in the case of financial instruments recognised at fair value through profit or loss and financial instruments recognised at fair value through other comprehensive income, which are measured at fair value.

The financial year is the same as the calendar year.

For the preparation of the statement of financial position, individual items are classified into groups of assets and liabilities depending on their nature, listed in the order of their liquidity and/or maturity. In additional disclosures current and non-current assets as well as current and non-current liabilities are disclosed as separate items, depending on whether they are expected to be paid or settled within 12 months of the balance sheet date (current) or after more than 12 months from the balance sheet date (non-current).

Financial assets and liabilities on the statement of financial position are offset only when there is a legal right and intent for net settlement, or when the assets are realised and the liabilities are settled simultaneously. Income and expenses on the income statement are not offset, except if so required by standards and notes or if this is specified in the Company's accounting policies.

The financial statements are presented in euros, which is the Group's presentation currency. The amounts in the financial statements are rounded to one euro.

2.2.3 Verifying the going concern assumption

Due to the unstable general economic and geopolitical situation, an updated analysis of the Group's and the Company's ability to ensure business continuity in such circumstances was conducted during the preparation of the financial statements.

Based on the analyses performed, it is confirmed that the Group remains financially stable, adequately liquid and well-capitalised, and is able to ensure business continuity in the current environment. Accordingly, the going concern assumption is deemed appropriate.

2.3 Bases for consolidation

In addition to the separate financial statements, the Company compiles the consolidated financial statements of the Group. The Group's consolidated financial statements include all companies directly or indirectly controlled by the Company, with the exception of those that are not material for the Group's consolidated financial statements.

Zavarovalnica Triglav controls a company if all the following three elements of control are met:

  • it has influence over the company (directs important activities that significantly affect the company's returns) by virtue of voting rights based on equity instruments or by virtue of other rights arising from contractual agreements,
  • it is exposed to variable returns or has the right to variable returns from its participation in the company and
  • it is able, through its influence over the company, to influence the amount of its return.

An assessment of the existence of control of an individual company is performed once a year or if the facts and circumstances show that one or more of the three elements of control have changed.

Subsidiaries are included in the consolidated financial statements under the full consolidation method from the acquisition date.

The assets and liabilities of a subsidiary are measured at fair value on initial consolidation. Any difference between the market value of the business combination and the acquirer's share of the net fair value of the assets, liabilities and contingent liabilities acquired is accounted for as goodwill. The cccts of any subsequent changes in the acquirer's interest in the subsidiary are recognised in share premium.

If the Company disposes of a subsidiary or loses control over it, such a subsidiary is deconsolidated from the date on which control ceases. Related assets (including goodwill), liabilities, non-controlling interests and other components of equity are derecognised, with any effect of loss of control in the consolidated statement of profit or loss being recognised as gain or loss. Any remaining interests in this company that no longer represent a significant or dominant interest after the disposal are recognised at fair value.

All the Group subsidiaries that are significant to the Group's financial statements are fully consolidated. Exceptionally, companies that are insignificant from consolidated financial statements point of view, i.e. the size of an individual such company does not exceed 0.5% of the Group's total assets, may be excluded from full consolidation. A company conducting insurance business or an activity directly related thereto (e.g. insurance brokerage) cannot be excluded from consolidation. In the full consolidation process, the carrying amount of the financial investment by the controlling company in each subsidiary and the controlling company's share in equity of each subsidiary are offset (eliminated). Intragroup assets and liabilities, income and expenses and the effect of other transactions within the Group are also fully eliminated.

In the consolidated financial statements, profit/loss and other comprehensive income are proportionately attributed to non-controlling interests. If the equity stake of non-controlling interests changes, the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in a subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received are recognised directly in equity and attributed to the controlling company's owners.

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The reporting date of the financial statements of Zavarovalnica Triglav and its subsidiaries does not differ from the reporting date of the consolidated financial statements.

The financial statements of subsidiaries included in the consolidation must be prepared in accordance with uniform accounting policies. If the accounting policies of a particular subsidiary differ from the accounting policies applied by the Group, appropriate adjustments are made to the financial statements of such subsidiary prior to the compilation of the consolidated financial statements to ensure compliance with the Group's accounting policies.

2.4 Foreign currency translation

Items included in the separate financial statements of each Group company are measured using the currency of the primary economic environment in which the respective company operates (functional currency). The financial statements are presented in euros, which is the Group's presentation currency.

2.4.1 Translation of business events and items

Transactions in foreign currency are translated into the functional currency as at the date of the transaction at the exchange rate quoted in the European Central Bank's reference rate list published by the Bank of Slovenia. If the exchange rate for a certain currency is not published by the Bank of Slovenia, the exchange rate published by Bloomberg is used. Exchange rate differences arising from the settlement of these transactions or from the translation of monetary items are recognised in profit or loss.

Exchange rate differences arising from changes in the amortised cost of monetary items denominated in foreign currency measured at fair value through other comprehensive income are recognised in profit or loss. Foreign rate differences from non-monetary items, such as equity instruments classified as financial assets measured at fair value through profit or loss, are recognised in profit or loss. Exchange rate differences from non-monetary items, such as equity instruments measured at fair value through other comprehensive income are recognised together with the effects of measurement at fair value in other comprehensive income and accumulated in equity.

2.4.2 Translation from the functional into the presentation currency

The financial statements of Group companies that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • assets and liabilities are translated at the final exchange rate as at the reporting date;
  • income, expenses and costs are translated at the average exchange rate for the reporting period;
  • equity components are translated at a historical exchange rate;
  • all the resulting exchange rate differences are recognised in other comprehensive income.

Goodwill and adjustment of acquired assets of a foreign subsidiary to fair value are treated in the same way as assets of a foreign subsidiary and are translated into the presentation currency at the closing exchange rate.

In the consolidated financial statements, exchange rate differences resulting from the translation of a net investment in a foreign subsidiary are recognised in the statement of comprehensive income. When the Group loses control over a foreign subsidiary, previously recognised exchange rate differences arising from the translation into the presentation currency are reclassified from other comprehensive income into the profit or loss statement as part of gains or losses on sale.

2.5 Significant accounting policies

2.5.1 Significant changes in accounting policies

There were no changes in accounting policies in 2024 that had a material impact on the Group's and the Company's financial statements.

2.5.2 Insurance and reinsurance contract assets and liabilities

2.5.2.1 Classification of contracts with policyholders and valuation approaches used

The Group's and the Company's contracts with policyholders are classified into two groups: insurance contracts and financial contracts.

A contract is defined as an insurance contract when, at the time of conclusion, the Group and the Company accept significant insurance risk from the policyholder by agreeing to compensate the policyholder if they are adversely affected by a specified uncertain future insured event.

The Group and the Company assess whether the contract contains a significant insurance risk by assessing whether the insured event could result in additional significant payouts to the policyholder, even if the insured event is highly unlikely.

This assessment is carried out for each contract separately on the contract issue date. In this assessment, the Group and the Company take into account all their material rights and obligations, regardless of whether they arise from a contract, law or regulation.

Whether or not a contract contains insurance risk, and whether that risk is significant, is a matter of subjective judgement. Life insurance contracts whose primary purpose is to cover the risk of death or to provide a lifetime annuity contain significant insurance risk and are classified as insurance contracts. Contracts with additional insurance are also classified as insurance contracts. Unit-linked life insurance contracts are classified as insurance contracts if the sum insured in the event of death exceeds a certain percentage of the total of the initial payment and the first instalment of the premium for the basic insurance, or if the premium for additional insurance exceeds a certain proportion of the total premium. The financial statements of subsidiaries included in the consolidation must be prepared in accordance with uniform accounting policies.

Insurance contracts are valued in the financial statements in accordance with the general model as prescribed by IFRS 17 (the general model, hereinafter: BBA) or in accordance with the simplified premium allocation approach (hereinafter: PAA) when the required conditions are met.

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The Group and the Company also enter into insurance contracts with their policyholders that are substantially investment-related under which the policyholders participate in the return on underlying items. In these cases, all contracts are treated as insurance contracts with direct participation features for which:

  • the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
  • the entity expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items;
  • the entity expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.

Insurance contracts with direct participation features are accounted for using the variable fee approach (hereinafter: VFA). The latter adapts the general model to reflect that the consideration received by the entity in respect of the contracts is a variable fee only.

All contracts that take the form of an insurance contract but do not meet the definition of an insurance contract under IFRS 17 are treated as financial contracts. Distinct investment components of pension insurance contracts that are separated from host contracts in accordance with IFRS 17.11 are also treated as financial contracts because these contracts do not bear insurance risk at the time of accumulation (saving).

Inward reinsurance contracts are treated in the same way as insurance contracts.

2.5.2.2 Approaches to the valuation of contracts with policyholders

The approaches used to value contracts with policyholders are set out in the table below.

Method Insurance class Insurance group
general model life insurance long-term traditional life insurance
(in the event of death, term insurance, credit insurance, etc.)
general model life insurance traditional insurance with profit participation
(in the event of death, endowment, annuity, old pension products)
general model life insurance unit-linked insurance with a high share of the premium invested in
a guarantee fund
general model life insurance pension products in the annuity payout phase
general model non-life insurance non-life insurance with an uneven distribution of coverage units and
long-term insurance
(credit insurance, construction and erection insurance, etc.)
premium allocation approach non-life insurance other non-life insurance
variable fee approach life insurance unit-linked insurance with a low share of the premium invested in
a guarantee fund
valuation under IFRS 9 life insurance pension products in the accumulation phase

The Group and the Company may enter into two or more contracts simultaneously with the same or related parties in order to achieve a general commercial effect. The Group and the Company account for such a set of contracts as a single contract when this reflects the content of the contract. In doing so, the Group and the Company assess:

  • whether the rights and obligations are different if they are treated separately or together;
  • whether the value of one contract can be measured without considering the other.

In addition to the provision of insurance coverage, a contract may contain one or more components that would fall within the scope of another standard if treated as separate contracts. These components are:

  • investment components,
  • derivatives,
  • service components.

The investment component refers to the Group's and the Company's contractual obligation to pay a certain amount to the policyholder regardless of whether an insured event occurs. The Group and the Company separate the investment component from the host insurance contract, provided that this investment component is distinct from the insurance contract. The valuation of the separate investment component is carried out in accordance with IFRS 9, unless it is an investment contract with discretionary participation features, which falls within the scope of IFRS 17. The investment component is distinct if both the following conditions are met:

  • the investment component and the insurance component are not highly interrelated;
  • a contract with equivalent terms is sold, or could be sold, separately in the same market or the same jurisdiction, either by the Group or the Company or by other companies that issue insurance contracts or by other parties. The Group and the Company take into account all information reasonably available in making this determination.

The investment component and the insurance component are highly interrelated if:

  • the policyholder is unable to benefit from one component unless the other is also present. Thus, if the lapse or maturity of one component in a contract causes the lapse or maturity of the other, IFRS 17 will be applied to account for the combined investment component and insurance component; or
  • the inability to measure one component without considering the other. Thus, if the value of one component varies according to the value of the other, IFRS 17 will be applied to account for the combined investment and insurance component.

The service component refers to the transfer of non-insurance goods or services. If the policyholder has the right to the service component regardless of whether an insured event occurs, the component is separated from the insurance component and accounted for in accordance with IFRS 15. When the transfer of goods or services is linked to the occurrence of a claim, it is accounted for together with insurance components using IFRS 17.

Statement of management's responsibilities Independent auditor's report

Appendix

Accounting report

  1. Financial statements

    1. Notes to the financial statements
  3. Triglav Group
  4. financial statements
  7. 2.5 Significant accounting policies
  8. 2.6 Significant accounting judgments,
  9. 2.7 The merger of the subsidiary
  10. 2.8 Risk management
  11. 2.9 Segment reporting
  13. 2.11 Tax policy
  14. 2.12 The impact of new or amended standards on
  15. the financial statements

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

2.5.2.3 Level of aggregation and initial recognition of insurance contracts

Insurance contracts subject to similar risks and managed together are aggregated into portfolios. Each portfolio is further divided into groups of contracts issued in the same calendar year (annual cohorts) and by profitability, as follows:

  • a group of insurance contracts that are onerous at initial recognition;
  • a group of insurance contracts that have no significant possibility of becoming loss-making (onerous) at any time;
  • a group of any remaining insurance contracts.

Insurance contracts are allocated to portfolios and groups at initial recognition and the allocation is not changed in subsequent periods.

A group of insurance contracts is recognised from the earliest of the following:

  • the beginning of the coverage period of the group of contracts;
  • the date when the first payment from a policyholder in the group becomes due or when this payment is received; and
  • when a group of insurance contracts becomes onerous.

The Group and the Company recognise only insurance contracts issued within a period of one year that meet recognition criteria by the reporting date. Subject to this limitation, a group of insurance contracts may remain open even after the end of the current reporting period. New insurance contracts are included in the group when they meet recognition criteria in subsequent reporting periods, until all insurance contracts expected to be included in the group are recognised.

2.5.2.4 Recognition and allocation of cash flows

Cash flows comprise estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows, and a risk adjustment for non-financial risk.

Cash flows that relate directly to the fulfilment of the contract, including cash flows for which the Group and the Company have discretion over the amount or timing, are treated as cash flows within the boundary of the insurance contract. The assessment of the contract boundary that determines which future cash flows are included in the measurement of an insurance contract is made by considering the substantial rights and obligations of the insurance contract.

Cash flows related to a group of insurance contracts include premium payments, claims and benefit paid, insurance acquisition cash flows and other costs incurred in the fulfilment of insurance contracts. These include both direct costs and the allocation of fixed and variable overheads.

Premium payments are considered to be premium payments and any cash flows arising from those premiums.

Claims and benefit payments are payments made to the policyholder, including claims that have already been incurred but not yet paid, as well as payments arising from future claims for which the Group and the Company have obligations. With respect to claims, the Group and the Company also consider cash flows for potential subrogation cash flows and other recoveries arising from both incurred and future claims.

Insurance acquisition cash flows are the allocated insurance acquisition cash flows attributable to the portfolio to which the insurance contract belongs.

Cash flows arising from costs incurred in the fulfilment of insurance contracts include claims handling and settlement costs, costs that incur in providing contractual benefits paid in kind rather than in cash, policy administration costs, such as costs of premium billing and handling policy changes, and general overheads, both fixed and variable, that are directly attributable to insurance contracts through allocation. Also included are investment costs in cases where the investment return is allocated to the policyholder and any other costs specifically chargeable to the policyholder under the terms of the contract.

Cash flows of the Group and the Company also include transaction-based taxes and payments by the Group and the Company in a fiduciary capacity to meet tax obligations incurred by the policyholder, and levies that arise directly from insurance contracts.

For non-life insurance, actual cash flows are estimated at the level of groups of contracts, with the exception of costs that are allocated based on keys (allocation keys). Future cash flows are estimated at the lowest level sufficient to permit the use of actuarial methods.

For life insurance, actual and future cash flows are estimated at the level of individual insurance contracts, with the exception of actual expenses that are allocated to groups of contracts based on keys.

Additional benefits to the basic insurance policy are considered as part of a single insurance contract, and the expected cash flows arising from them are added to the expected cash flows of the basic insurance contract.

All insurance acquisition cash flows incurred in the period are allocated to functional groups (acquisition costs, claim handling expenses, management costs and other administrative costs) and then, based on the keys, to groups of contracts.

Advance payments to agencies for underwriting commission are identified as an insurance acquisition cash flow before the recognition of the related group of insurance contracts (i.e. advance payments of acquisition costs). Such payments are treated as other receivables.

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2.5.2.5 General measurement model for the valuation of insurance contracts

Measurement on initial recognition

A group of insurance contracts is measured on initial recognition as the total of the fulfilment cash flows and the contractual service margin. The fulfilment cash flows are estimates of future cash flows, appropriately discounted and adjusted for non-financial risk.

Determination of contract boundaries

The measurement of a group of insurance contracts includes all future cash flows within the boundary of each insurance contract in the group. This ensures that estimates of future cash flows are complete, unbiased, current and explicit.

A cash flow is within the boundary of an insurance contract if it arises from substantive rights and obligations that exist during the reporting period in which the Group and the Company can compel the policyholder to pay the premiums or in which the Group and the Company have a substantive obligation to provide the policyholder with insurance contract services.

A substantive obligation to provide insurance contract services ends when the Group and the Company have the opportunity to reassess the policyholder's (or the portfolio's) risks and, as a result, to set a new price or level of benefits that reflects those risks. The reassessment of risks does not take into account lapse and expense risks.

Some insurance contracts provide policyholders with an option to buy an annuity upon the initially issued policies maturity. In such cases, the Group and the Company assess its practical ability to reprice such insurance contracts in their entirety to determine if annuity-related cash flows are within or outside of the insurance contract boundary. The Group and the Company do not include expected cash flows of non-guaranteed annuity options in the value of an insurance policy.

In the case of group term insurance contracts, the premium may change annually. Such insurance contracts are treated as annual, which means that they are derecognised and then re-recognised each year in accordance with the new terms.

Insurance contracts with direct participation features are within contract boundaries when there is a substantive obligation to pay at a present or future date.

Use of discount rates

By using a discount rate, the estimates of future cash flows are adjusted to reflect the time value of money and the financial risks to the extent that the financial risks are not included in the estimates of future cash flows.

The choice of the discount rate is a matter of subjective judgement and is geared towards the objective that the discount rate used reflects the characteristics of the cash flows arising from the insurance contracts and liquidity risk.

The discount rate is determined as the risk-free interest rate plus the illiquidity premium applied to the risk-free interest rate as a parallel shift to the last liquidity point. Base risk-free interest rates for the euro are obtained from the EIOPA database according to the recognition date. These are based on data from interest rate swaps. In addition to these, the volatility adjustment curve, also published by EIOPA, is used. For non-EU countries, the volatility adjustment curve is based on the spread between local government bonds and euro interest rate swaps.

For the life insurance class, an illiquidity test based on the calculation of illiquidity indicators is carried out at least once a year at portfolio level. Based on this test, each insurance contract is allocated on initial recognition to an appropriate illiquidity class (50%, 75% or 100% illiquidity) in which it remains until derecognition.

For the non-life insurance portfolio, all liabilities are discounted using risk-free interest rates. The exception is Zavarovalnica Triglav, where the risk-free interest rate curve with a volatility adjustment published by EIOPA is applied to liabilities for claims payable as annuities.

Cash flows that vary based on the returns on underlying items are adjusted for the effect of this variability using risk-insensitive measurement techniques and discounted using risk-free interest rates adjusted for illiquidity.

The Group and the Company estimate the discount rate applicable to each group of insurance contracts at initial recognition based on the recognised insurance contracts. In the subsequent reporting period, when new insurance contracts are added to the group, the discount rate applicable to the group at initial recognition is adjusted from the beginning of the reporting period in which the new insurance contracts are added to the group.

Risk adjustment for non-financial risk

Risk adjustment for non-financial risk refers to the compensation set by the Group and the Company because it bears uncertainty about the amount and timing of the cash flows that arises from nonfinancial risk. It is calculated using separate methods for non-life and life insurance contracts, taking into account the Group's and the Company's risk appetite.

Non-financial risks of life insurance are related to mortality, longevity, morbidity, lapse, expense, mortality catastrophe and other risks arising from health insurance. The metric used to calculate the risk adjustment for non-financial risk is the cost of capital to maturity of the existing portfolio method, which is partly based on the Solvency II methodology.

For the non-life insurance portfolios, the risk adjustment for non-financial risk for liabilities for incurred claims is calculated as the excess of the value at risk over the best estimate of future cash flows at a confidence level to be determined by the Group and the Company. The calculation is performed at the level of homogeneous groups, taking into account their diversification.

The risk adjustment for the liability for remaining coverage of non-life insurance is derived from the basic capital requirement for the relevant risks under the Solvency II standard formula, reduced from 99.5% to a pre-specified confidence level which is the same as that used in the calculation of the risk adjustment for the liability for incurred claims. The calculation also takes into account portfolio diversification.

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Contractual service margin

The contractual service margin is an integral part of the total carrying amount of liabilities for the group of insurance contracts and represents the unearned profit that the Group and the Company will recognise when they provide insurance contract services during the coverage period.

The Group and the Company measure the contractual service margin on initial recognition at an amount that, unless the group of insurance contracts is onerous, results in no income in profit or loss arising from:

  • the expected fulfilment cash flows for the group of insurance contracts;
  • the amount of the derecognition of any asset for insurance acquisition cash flows, allocated to the group of insurance contracts;
  • any other asset or liability previously recognised for cash flows related to the group of contracts;
  • any cash flows arising from the contracts in the group at that date.

If the group of insurance contracts is onerous, the Group and the Company recognise the entire loss on initial recognition. As a result, the carrying amount of the liability for a group of such insurance contracts is equal to the fulfilment cash flows and the contractual service margin is zero.

On initial recognition, the Group and the Company determine the coverage units for the group of insurance contracts. The contractual service margin is then attributed to the group of insurance contracts based on the coverage units provided in the period.

The Group and the Company allocate the acquired insurance contracts with claims in the settlement phase to annual groups based on the expected return on insurance contracts at the acquisition date. The Group and the Company use the consideration paid as a proxy for premiums to calculate the contractual service margin at initial recognition. If, at initial recognition, the insurance contracts acquired in a portfolio transfer are onerous, the excess of the fulfilment cash flows over the consideration received is recognised in profit or loss. For insurance contracts acquired in a business combination, the excess, representing the extent of the onerous insurance contract, is recognised as part of goodwill.

Treatment of onerous contracts on initial recognition

An insurance contract is classified as onerous at the date of initial recognition if all cash flows arising from the insurance contract in total are a net outflow. Such an insurance contract is classified in a group of (onerous) insurance contracts separately from those groups of contracts that are not onerous. The net outflow expected to arise from the group of onerous insurance contracts is recognised as a loss in profit or loss on initial recognition. After the loss is recognised, the carrying amount of the liability for the group of onerous insurance contracts is equal to the expected fulfilment cash flows and the contractual service margin is zero.

Subsequent measurement

The carrying amount of a group of insurance contracts at the end of the reporting period is the sum of the liability for remaining coverage (LRC) and the liability for incurred claims (LIC), where the LRC is equal to the sum of the expected future fulfilment cash flows (that relate to the future service) and the contractual service margin for that group of insurance contracts, and the liability for incurred claims represents the cash flows that relate to the past service.

In the current period, the following is recognised in the statement of profit or loss or in the statement of other comprehensive income:

  • Income and expenses for the changes in the carrying amount of the liability for remaining coverage:
  • Insurance revenue for the reduction in the liability for remaining coverage because of services provided in the period;
  • Insurance service expenses for losses on groups of onerous contracts and reversals of such losses;
  • Insurance finance income or expenses from discounting (for the effect of the time value of money and the effect of financial risk).
  • Income and expenses for the changes in the carrying amount of the liability for incurred claims:
    • Insurance service expenses for the increase in the liability because of claims and expenses incurred in the period;
    • Insurance service expenses for any subsequent changes in fulfilment cash flows relating to incurred claims and incurred expenses;
    • Insurance finance income or expenses from discounting (for the effect of the time value of money and the effect of financial risk).

Treatment of changes in expected cash flows

Changes in expected cash flows that relate to current or past service are recognised in profit or loss. Those changes are:

  • the effect of the time value of money and the effect of financial risk (including the effect of a change in the discount rate),
  • changes in estimates of expected fulfilment cash flows relating to liabilities for incurred claims;
  • experience adjustments for insurance service expenses.

Changes in expected cash flows that relate to future service are reflected in the change in the contractual service margin or in the loss component within the liability for remaining coverage. Those changes are:

  • experience adjustments arising from premiums received in the period that relate to future service;
  • changes in the estimate of the present value of future cash flows for the liability for remaining coverage;
  • differences between any investment component expected to become payable in the period and the actual investment component that becomes payable in the period;
  • differences between any loan to a policyholder expected to become repayable in the period and the actual loan to a policyholder that becomes repayable in the period;
  • changes in the risk adjustment for non-financial risk that relates to future service.

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  1. Financial statements

    1. Notes to the financial statements
  3. Triglav Group
  5. 2.3 Bases for consolidation
  6. 2.4 Foreign currency translation
  7. 2.5 Significant accounting policies
  8. 2.6 Significant accounting judgments,
  9. 2.7 The merger of the subsidiary
  10. 2.8 Risk management
  11. 2.9 Segment reporting
  13. 2.11 Tax policy
  14. 2.12 The impact of new or amended standards on

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Changes affecting the contractual service margin

The contractual service margin at the end of the reporting period represents the profit in the group of insurance contracts that has not yet been recognised in profit or loss because it relates to the future service.

The change in the contractual service margin in the period is due to:

  • the effect of the change in estimates of future fulfilment cash flows (as described above);
  • the elimination of the contractual service margin into income;
  • the effect of interest accreted on the contractual service margin;
  • the effect of any new insurance contracts;
  • the effect of any currency exchange differences on the carrying amount of the contractual service margin.

The elimination of the contractual service margin into income depends on how the Group and the Company define the number of coverage units. This is the quantity of coverage provided by the contracts in the group of insurance contracts, which is determined by considering for each insurance contract the quantity of the benefits provided under an insurance contract and its expected coverage period.

The bases for determining the quantity of benefits provided is shown in the table below.

Insurance class Insurance group Basis
life insurance whole life insurance sum insured
life insurance endowment life insurance sum insured
life insurance term life insurance sum insured
life insurance life insurance with a disability rider sum insured
life insurance additional riders to life insurance sum insured
life insurance annuity insurance annual annuity
life insurance unit-linked life insurance an amount higher than the sum
insure of the value of the fund
non-life insurance insurance for construction and installation projects, project
liability, construction guarantees, financial guarantees and
credit insurance		 sum insured and the passage of time

Interest on the contractual service margin is accounted for using (locked-in) discount rates determined on initial recognition of insurance contracts.

For life insurance contracts, if contracts are subsequently added to the group, the discount rates used are updated by calculating a weighted average of the discount rates over the entire recognition period of the contracts. This is not the case for non-life insurance contracts.

For insurance contracts with direct participation features, the change in the contractual service margin in the period is also affected by the change in the share of the fair value of the underlying items.

Treatment of onerous insurance contracts on subsequent measurement

The Group and the Company determine the appropriate level at which reasonable and supportable information is available to assess if insurance contracts are onerous at initial recognition and if the contracts that are not onerous at initial recognition have no significant possibility of becoming onerous subsequently. The Group and the Company use significant judgements in determining at what level of granularity they have sufficient information to conclude that all insurance contracts within a set will be in the same group. In the absence of such information, the Group and the Company assess each insurance contract separately.

In the event that a group of insurance contracts becomes onerous on subsequent measurement, the excess of expected cash outflows over the carrying amount of the contractual service margin is recognised as a loss in the statement of profit or loss and, on the other hand, a loss component of the liability for remaining coverage is established.

The subsequent changes in fulfilment cash flows of the liability for remaining coverage may:

  • be systematically allocated between the loss component of the liability for remaining coverage and the liability for remaining coverage, excluding the loss component;
  • be allocated solely to the loss component of the liability for remaining coverage until that component is reduced to zero.

2.5.2.6 Premium allocation approach in the valuation of insurance contracts

For a group of insurance contracts for which the coverage period of each contract in the group does not exceed one year, the premium allocation approach, which is a simplified general model, may be used to measure the group of insurance contracts.

The simplified approach is also be applied where the measurement of the liability for remaining coverage using the simplified approach is reasonably expected not to differ materially from the measurement under the general model.

If the premium allocation approach is used, the carrying amount of the liability for remaining coverage on initial recognition is the amount of premiums received on initial recognition minus any insurance acquisition cash flows and adjusted for any amount arising from the derecognition of assets for acquisition costs in advance.

The carrying amount of a group of insurance contracts at the end of each reporting period is the sum of:

  • the liability for remaining coverage (LRC);
  • the liability for incurred claims (LIC) that includes future cash flows that relate to past service.

The liability for remaining coverage in the current period:

  • is increased by the premiums received in the period;
  • is decreased by paid insurance acquisition cash flows;
  • is increased by the amortisation of insurance acquisition cash flows recognised as an expense in profit or loss;
  • is decreased by expected premiums paid recognised as insurance revenue in profit or loss because insurance services were provided;

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is decreased by any investment component paid or transferred to the liability for incurred claims. Insurance acquisition cash flows are accrued in proportion to premium.

Liabilities for incurred claims are discounted.

The Group and the Company apply the premium allocation approach to most non-life insurance products, with the exception of those with coverage of more than one year and those whose risks are spread over time in a non-linear fashion.

Insurance contracts in the non-life insurance contract groups do not have significant financing components, therefor the carrying amount of the liability for remaining coverage is not adjusted for the time value of money and the effect of financial risk.

If, in subsequent measurement of a group of insurance contracts, it is determined that the expected fulfilment cash flows related to the liability for remaining coverage exceed the carrying amount of the liability for remaining coverage, a loss component is created among insurance service expenses as part of the liability for remaining coverage. The loss component is amortised (transferred to income) on a straight-line basis over the period of the insurance coverage or reversed if it is determined that the group of insurance contracts is no longer onerous.

2.5.2.7 Derecognition of insurance contracts

An insurance contract is derecognised when it is extinguished (i.e. when the obligation specified in the insurance contract expires) or is discharged or cancelled, if it is transferred to a third party or if the terms of the insurance contract are substantially modified.

A substantial modification of insurance contract terms is a modification based on which:

  • an insurance contract is no longer treated as an insurance contract under IFRS 17;
  • an insurance contract without direct participation features is changed to a contract with direct participation features, or vice versa;
  • individual components of an insurance contract are no longer treated in the same way as before the modification;
  • contract boundaries change;
  • an insurance contract would have to be allocated to a different group of contracts;
  • the current approach to insurance contract measurement (BBA, PAA, VFA) is no longer appropriate.

The derecognition of an insurance contract that is measured using the general model (BBA) results in:

  • the adjustment (derecognition) of fulfilment cash flows relating to the rights and obligations that have been derecognised;
  • the adjustment of the contractual service margin by the same amount, unless these changes are attributable to a loss component;
  • the adjustment of the number of coverage units for expected remaining services.

If an insurance contract is derecognised because it was transferred to a third party, the contractual service margin is adjusted for the amount of the premium charged by the third party (unless the insurance contract is onerous).

If an insurance contract is derecognised due to a significant modification of its terms, the contractual service margin is adjusted for the amount of the premium that would have been charged had the Group and the Company into a contract with equivalent terms as the new contract at the date of the contract modification, less any insurance contract modification cost.

The derecognition of an insurance contract that is measured using the premium allocation approach (PAA) is reflected in profit or loss as the difference between the derecognised portion of the liability for remaining coverage and any other cash flows at the time of derecognition. If an insurance contract is derecognised due to a significant modification of its terms, the difference between the derecognised portion of the liability for remaining coverage and the notional amount of the premium that would have been charged had the Group and the Company into a contract with equivalent terms as the new contract at the date of the insurance contract modification, less any contract modification cost, is disclosed in profit or loss.

2.5.2.8 Received reinsurance contracts

The measurement of groups of received reinsurance contracts follows the same guidelines as the measurement of groups of underlying insurance contracts, taking into account the specificities of the reinsurance business, as set out below.

The same segmentation rules apply to reinsurance contracts as to insurance contracts, except that a reinsurance contract cannot be loss-making (there is either a net gain or a net loss on initial recognition).

Reinsurance contracts may contain components that fall within the scope of another standard. The separation of components is assessed using the criteria applicable to insurance contracts.

A group of received reinsurance contracts is recognised:

  • at the beginning of the coverage period of the group of received reinsurance contracts;
  • on initial recognition of the first insurance contract that is the subject of that reinsurance;
  • when the Group and the Company recognise an onerous group of insurance contracts that are the subject of reinsurance if the Group and the Company have previously entered into a reinsurance contract from the group of reinsurance contracts.

In the case of a group of reinsurance contracts, cash flows are within the contract boundary of the reinsurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the Group and the Company are required to pay amounts to, or have the substantive right to receive services from the reinsurer.

The substantive right to receive services from the reinsurer ceases when the reinsurer is able to reassess the risks transferred to it and to set a price or level of benefit that fully reflects those reassessed risks, or when it has the right to cancel the reinsurance coverage.

The contract boundary of a reinsurance contract is determined by the date of the option to terminate or renew the reinsurance contract, which is usually one year, or the date of the agreed extinguishment of the reinsurance contract, and the coverage period of the underlying insurance contracts is taken into account in determining the coverage period of each reinsurance contract.

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For a group of reinsurance contracts, the risk adjustment for non-financial risk represents the amount of risk being transferred by the Group and the Company as the holders of the group of reinsurance contracts to the issuer of those reinsurance contracts.

The measurement of reinsurance contracts must also take into account the effect of the risk of nonperformance by the reinsurer.

In addition to cash flows from premiums, claims, subrogations and commissions, the measurement of a group of reinsurance contracts should include the cash flow representing the effect of the risk of nonperformance by the reinsurer.

When measuring reinsurance contracts, the contractual service margin is replaced by the net gain or loss on the purchase of reinsurance. On initial recognition, the Group and the Company measure the net gain/loss of reinsurance contracts at an amount equal to:

  • the fulfilment cash flows;
  • the amount derecognised at that date of any asset or liability previously recognised for cash flows related to the group of reinsurance contracts held;
  • any cash flows arising at that date;
  • any income recognised in profit or loss as a result of the recognition of the reinsurance loss-recovery component of the asset for remaining coverage.

If the net cost of purchasing reinsurance coverage relates to events that occurred before the purchase of the group of reinsurance contracts, the Group and the Company recognise this cost immediately as an expense in profit or loss.

The contractual service margin at the end of each reporting period for a group of reinsurance contracts is determined as the contractual service margin at the beginning of the reporting period, adjusted for:

  • the effect of any new reinsurance contracts added to the group of reinsurance contracts;
  • accrued interest on the carrying amount of the contractual service margin;
  • income recognised in profit or loss as a result of the recognition of the reinsurance loss-recovery component of the asset for remaining coverage;
  • any reversals of the loss-recovery component to the extent that those reversals are not part of the change in fulfilment cash flows of a group of reinsurance contracts;
  • changes in fulfilment cash flows o the extent that the change relates to future service, unless the change relates to a change in cash flows that does not adjust the contractual service margin for the group of underlying insurance contracts, or the change results from the application of a premium allocation approach to the group of underlying insurance contracts;
  • the effect of exchange rate differences on the contractual service margin;
  • the amount recognised in profit or loss because of services received in the period, determined by the allocation of the contractual service margin remaining at the end of the reporting period (before any allocation) over the current and remaining coverage period of the group of reinsurance contracts held.

Changes in fulfilment cash flows resulting from changes in the risk of non-performance by the issuer of reinsurance contracts are not related to future service and do not adjust the contractual service margin.

The Group and the Company adjust the contractual service margin of a group of reinsurance contracts, and as a result recognise income when they recognise a loss on initial recognition of an onerous group of insurance contracts underlying the reinsurance contracts or on addition of onerous insurance contracts underlying the reinsurance contracts to the group (i.e. a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts). This adjustment is made only if the reinsurance contract has already been written at the time the loss component of the liability for remaining coverage on the onerous insurance contracts is recognised.

The amount of this adjustment is equal to the product of the recognised loss on the underlying insurance contracts and the percentage of claims on the underlying insurance contracts expected to be recovered from the group of reinsurance contracts held.

The Group and the Company establish or adjust a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts depicting the recovery of losses recognised in accordance with the above paragraphs. The loss-recovery component determines the amounts that are recognised in profit or loss as reversals of recoveries of losses from reinsurance contracts and are consequently excluded from the premiums paid to the reinsurer. The loss-recovery component is adjusted to reflect changes in the loss component of an onerous group of underlying insurance contracts. The carrying amount of the loss-recovery component may not exceed the portion of the carrying amount of the loss component of the onerous group of underlying insurance contracts that the Group and the Company expect to recover from the group of reinsurance contracts.

Reinsurance contracts for which the net present value of future cash flows is positive is recognised as an asset, and if that value is negative, the carrying amount of the reinsurance contracts is recognised as a liability.

The Group and the Company may use the PAA to measure reinsurance contracts if:

  • they reasonably expect that such simplification would result in a measurement of the liability for remaining coverage for the group of reinsurance contracts that is not materially different from the measurement under the BBA; or
  • the coverage period of each reinsurance contract in the group of reinsurance contracts is one year or less.

The criterion in the first indent above is not met if, at the inception of a group of reinsurance contracts, the Group and the Company expect significant variability in the fulfilment cash flows that would affect the measurement of the liability for remaining coverage during the period before a claim is incurred.

If the PPA is used, the Group and the Company adjust the carrying amount of the asset for remaining coverage for the amount of the established loss-recovery component rather than adjusting the contractual service margin.

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On initial recognition, the assets for remaining coverage of a group of reinsurance contracts are equal to the amount of reinsurance premiums paid including fees and commissions. The assets for remaining coverage are increased in the current reporting period by the reinsurance premiums paid in the period and reduced by the transfer of reinsurance premiums to expenses for the services provided in the current period. At the end of the reporting period, the carrying amount of reinsurance contract assets is equal to:

  • the assets for remaining coverage (LRC);
  • incurred claims including fees and commissions and subrogations, which consist of expected future cash flows arising from past service (LIC).

2.5.2.9 Insurance revenue

In the period in which insurance services are provided, the liability for remaining coverage for the groups of insurance contracts is transferred to profit or loss.

For the insurance contracts measured under the general model, insurance revenue is represented by:

  • changes in the liability for remaining coverage arising from:
  • claims and other insurance service expenses incurred in the current period at the amounts expected at the beginning of the reporting period. These do not include amounts related to loss components, acquisition costs, etc;
  • the change to the risk adjustment for non-financial risk that excludes changes affecting future service and amounts included in the loss component;
  • the amounts of contractual service margin transferred to income as a result of services provided in the period;
  • the experience adjustment arising from premiums received in the period that relate to past and current service.
  • insurance revenue related to insurance acquisition cash flows by allocating the portion of the premiums that relate to recovering those cash flows to each reporting period in a systematic way on the basis of the passage of time. The same amount is recognised as insurance service expenses.

For the insurance contracts measured using the premium allocation approach, income is recognised proportionately to the elapsed period of insurance coverage.

2.5.2.10 Insurance service expenses

Insurance service expenses include:

  • expenses for incurred claims and benefits, excluding investment components;
  • other directly attributable insurance service expenses;
  • amortisation of acquisition costs;
  • changes that relate to past service (such as changes in expected cash flows relating to the liability for incurred claims);
  • changes that relate to future service (such as losses on onerous groups of insurance contracts and reversals of such losses arising from the change in the loss component).

2.5.2.11 Reinsurance income and reinsurance service expenses

The Group and the Company report reinsurance income and reinsurance service expenses on a net basis, as net income or net expenses, comprising:

  • reinsurance service expenses (reinsurance commissions);
  • recoveries of incurred claims;
  • the effects of changes in credit risk related to reinsurers.

When using the premium allocation approach, part of reinsurance commissions are recognised in accordance with the passage of time within the period of insurance coverage, and part are allocated to other cash flows, such as bonuses and other forms of commissions.

Reinsurance commissions reduce reinsurance premiums and are recognised as reinsurance service expenses.

2.5.2.12 Financial effects of insurance operations

Changes in the carrying amount of groups of insurance contracts arising from the effects of the time value of money and financial risk (discounting effects) are recognised as insurance finance income and expenses.

For insurance contracts measured under the general model, the largest share of insurance finance income and expenses is composed of:

  • interest on expected future cash flows and the contractual service margin;
  • the effects of changes in interest rates and other financial assumptions;
  • currency exchange differences.

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For insurance contracts measured under the variable fee approach (VFA), the largest share of insurance finance income and expenses is composed of:

  • the change in the fair value of the underlying assets;
  • the effects of interest, changes in interest rates and changes in other financial assumptions on expected future cash flows that do not depend on returns on the underlying assets.

For insurance contracts measured under the premium allocation approach (PAA), the largest share of insurance finance income and expenses is composed of:

  • interest on the liability for incurred claims;
  • the effects of changes in interest rates and other financial assumptions.

The effect of changes in the risk adjustment for non-financial risk, which is recognised in profit or loss, is recognised in full in insurance revenue or insurance service expenses.

For most insurance contracts portfolios, in order to reduce accounting mismatches, the financial effects of insurance operations are disclosed in other comprehensive income, as are the effects of most Group's and Company's investment portfolios. Only the effects of insurance contracts with direct participation features, most of whose underlying assets are also measured at fair value through profit or loss, are recognised in profit or loss.

2.5.3 Financial assets

Financial assets comprise financial investments, operating and other receivables, and cash and cash equivalents. The accounting policies for each of these assets are presented below.

2.5.3.1 Financial instruments

At initial recognition, financial instruments are measured at fair value. The initially recognised value is increased by transaction costs (fees and severance payments to agents, advisers, stock brokers, stock exchange fees and other transfer-related taxes) that are directly attributable to the acquisition or issue of a financial instrument. This does not apply to financial instruments classified as instruments measured at fair value through profit or loss, because these costs are recognised in profit or loss directly at acquisition.

The trade date is used at the purchase or sale of a financial instrument, except for loans and deposits where the settlement date is used.

On initial recognition, a financial instrument is classified into one of the following measurement categories:

  • Financial instruments measured at amortised cost (AC);
  • Financial instruments measured at fair value through other comprehensive income (FVOCI);
  • financial instruments measured at fair value through profit or loss (FVTPL).

The classification of a financial investment into a particular category takes into account the Group's and the Company's business model for managing assets and the contractual cash flow characteristics of each financial investment.

Financial instruments measured at amortised cost

A financial instrument may be measured at amortised cost if both of the following conditions are met:

  • the financial instrument is held within a business model whose objective is to hold financial instruments in order to collect contractual cash flows;
  • the contractual cash flows are solely payments of principal and interest on the principal amount outstanding.After initial recognition, the instrument is measured at amortised cost using the effective interest method and is subject to impairment. Interest income, foreign exchange gains or losses and impairments are recognised in profit or loss. Gains and losses determined on derecognition are also recognised in profit or loss.

Financial instruments measured at fair value through other comprehensive income

The category of financial instruments measured at fair value through other comprehensive income includes debt securities that meet the following conditions and are not classified in one of the other categories:

  • the debt security is held within a business model whose objective is achieved by both collecting contractual cash flows and selling;
  • the contractual cash flows are solely payments of principal and interest on the principal amount outstanding.

Equity securities not held for trading and, on initial recognition, designated irrevocably as measured at fair value through other comprehensive income are also measured at fair value through other comprehensive income. These are primarily investments that are closely linked with the Group's and the Company's business activity in the long term or are participating interests in companies with a solid dividend yield and an expected long-term positive growth impact. The purpose of holding such financial instruments is to collect dividend cash flows.

After initial recognition, a financial instrument is measured at fair value, without deducting transaction costs that may arise on sale or other disposal of the instrument. If a financial instrument is not listed on a stock exchange, the fair value is measured based on recent transaction prices if the market situation has not changed significantly since the last transaction, or using the discounted cash flow valuation model. Equity instruments not quoted in an active market and for which the fair value cannot be reliably measured are measured according to the valuation model.

Interest income calculated using the effective interest rate, dividend income, foreign exchange gains and losses and expected credit losses are recognised in profit or loss. Other gains and losses are recognised in other comprehensive income until the financial instrument is derecognised.

When these financial instruments are derecognised, the accumulated losses or gains previously recognised in other comprehensive income are transferred to profit or loss or, in the case of equity securities, to retained earnings.

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Financial instruments measured at fair value through profit or loss

If the financial instrument is not measured at amortised cost or at fair value through other comprehensive income, it is measured at fair value through profit or loss. This includes instruments that do not pass the cash flow adequacy test, equity securities that do not qualify for measurement at fair value through other comprehensive income and all financial instruments in other business models that are managed on a fair value basis or are held for trading.

Interest, dividend income, valuation effects and effects on derecognition of a financial instrument are recognised in profit or loss in the current period.

Reclassification of financial instruments between levels

Financial investments are not reclassified after initial recognition. An exception to this rule is permitted or required only when the Group and the Company change their business model according to which financial investments are managed. In rare cases, reclassification is applied prospectively from the reclassification date, with the reclassification date defined as the first day of the reporting period following the change in the business model.

Business model

The Group and the Company manage groups of financial investments to achieve their business objectives, which are defined by their business model. It does therefore not depend on the management's intention for an individual financial instrument, but on a higher level of aggregation. The Group and the Company defined the purpose of the business model on the basis of:

  • the policies and objectives for the portfolio of financial instruments and the implementation of these policies in practice;
  • how the performance of the business model and the financial instruments held within that business model are evaluated and reported;
  • the risks that affect the performance of the business model and the way in which these risks are managed;
  • past data on the frequency, volume and timing of sales in prior periods in comparable business models or the expected frequency, value and timing of sales.

The assessment of the business model is based on reasonably expected scenarios, excluding worst case and stress case scenarios.

The Group and the Company manage their financial investments within the following business models:

  • holding the financial instruments to collect contractual cash flows;
  • holding the financial instruments both to collect contractual cash flows and to sell financial assets;
  • holding the financial instruments to sell them.

Financial instruments that are held within a business model whose objective is to hold instruments in order to collect contractual cash flows are managed to realise cash flows by collecting contractual payments over the life of the instrument. As a rule, financial instruments are held to maturity, but sales related to an increase in the issuer's credit risk or the concentration of this risk are also permitted in this business model. Sales close to the final maturity of a security or sales to meet liquidity needs in a stress case scenario are also permitted. Other sales are also consistent with this business model if they are insignificant in value (both individually and in aggregate) or if they are infrequent (even if significant in value). According to this business model, the Group and the Company manage:

  • loans and deposits to manage known short-term liquidity needs;
  • sets of debt securities whose stable yield, recognised in profit or loss, reduces the financial marketrelated opposite impact of insurance liabilities.

The purpose of financial instruments managed in accordance with a business model whose objective is achieved both through the collection of contractual cash flows and the sale of financial instruments, is primarily to match the duration of assets with the duration of liabilities that those assets are funding, to manage long-term liquidity needs and to achieve a target interest yield or trading yield.

Under other business models, financial instruments are managed with the objective of generating cash flows and yield solely through the sale of instruments. Buying and selling decisions are made based on fair values. Under this business model, portfolios of financial instruments are also managed to cover those insurance liabilities for which valuation effects are recognised in profit or loss.

The solely payments of principal and interest test (the SPPI test)

Only instruments whose contractual cash flows meet the SPPI test, i.e. they are solely payments of principal and interest on the principal amount outstanding (SPPI), may be classified as financial instruments measured at amortised cost (AC) or fair value through other comprehensive income (FVOCI).

Principal is the fair value of the financial instrument at initial recognition less subsequent changes, e.g. due to repayment. Interest is defined as consideration for the time value of money, for the credit risk associated with the principal amount outstanding and for other basic lending risks and costs (liquidity risk, administrative costs) as well as a profit margin.

In assessing whether the contractual cash flows meet the SPPI criterion, the Group and the Company assess the contractual characteristics of a financial investment. This includes the assessment whether a financial instrument contains the contractual terms that may change the timing and amount of contractual cash flows in a way that this criterion would no longer be fulfilled. The following is taken into account:

  • contingent events that could change the timing and amount of contractual cash flows;
  • the option of prepayment or extending the term;
  • the facts that limit the payment of cash flows of particular assets (e.g. subordination of payments); and
  • the features that modify the concept of the time value of money (e.g. periodic interest rate adjustments).

The Group and the Company carry out the SPPI test as part of their regular investment procedure.

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2.5.3.2 Receivables

Receivables from insurance and reinsurance operations are taken into account in the calculation of insurance and reinsurance contract assets and liabilities in the form of cash flows and, as such, are not recognised directly in the statement of financial position of the Group and the Company.

Other receivables relate to non-attributable receivables from insurance operations, overpayments and prepayments, other operating receivables and receivables from financing.

2.5.3.3 Cash and cash equivalents

Cash includes balances with banks, cash in transit, cash on hand and cash equivalents such as call deposits.

2.5.3.4 Impairment of financial assets

In accordance with IFRS 9, the Group and the Company recognise credit losses that are expected to be incurred in the future.

Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value of all cash shortfalls) over the 12-month period after the reporting date (Stage 1) or over the expected life of a financial instrument. A credit loss is the difference between discounted contractual cash flows and discounted expected cash flows using the effective interest rate as the discount factor.

A loss allowance for expected credit losses is recognised for all debt financial assets not measured at fair value through profit or loss.

Expected credit losses on the financial assets are assessed at least once a year, as at the last day of the reporting period.

The expected credit loss model is based on the moving of financial assets between three groups or stages. Typically, financial assets move from Stage 1 to Stage 3, but it is also possible to move back to the previous stage.

At initial recognition, all financial assets, other than those that are already credit-impaired at initial recognition, are classified in Stage 1, for which 12-month expected credit losses are established. 12-month expected credit losses are the portion of lifetime expected credit losses that refer to possible default events in the next 12 months after the reporting date or in a shorter period if the remaining maturity of the financial asset is less than one year. In Stage 1, interest income is recognised using the effective interest rate applied to the total gross value of the financial asset (without reduction for any loss allowance).

On subsequent measurement, financial assets are included in Stage 2 if, after initial recognition, there has been a significant increase in credit risk but the assets do not yet show objective evidence of impairment. Lifetime expected credit losses are established for Stage 2 financial assets. Lifetime expected credit losses are expected credit losses that result from all possible default events during the lifetime of the financial asset. Based on a qualitative analysis, i.e. a comparison of the credit rating as at the reporting date and the credit rating at initial recognition, the Group and the Company determine whether the risk of default has increased significantly since initial recognition and requests a move

from initial Stage 1 to the lower Stage 2. A downgrade to Stage 2 is required when the credit rating deteriorates by three notches with a simultaneous downgrade to sub-investment grade. For initial ratings (rating at the date of recognition) of Baa3 and below, a two-notch deterioration is sufficient to move to Stage 2, and for initial ratings of B2 and below, a one-notch downgrade is required to move to Stage 2. In Stage 2, interest income is recognised using the effective interest rate applied to the total gross value of the financial asset (without reduction for any loss allowance).

Financial assets that are not purchased or originated credit-impaired financial assets and that show objective evidence of impairment at the reporting date are classified in Stage 3. Lifetime expected credit losses are established for these financial assets. Interest income of Stage 3 financial assets is recognised using the effective interest rate applied to the net value of the financial asset (taking into account any loss allowance).

The general three-step impairment model does not apply to financial assets that are already creditimpaired at initial recognition (purchased or originated credit-impaired (POCI) financial assets). For these assets, lifetime credit losses are already established at initial recognition, which are included in the estimate of future cash flows when calculating the effective interest rate and therefore do not have an immediate impact on profit or loss. Interest income of these instruments is accrued on the net value of the instrument. Any subsequent changes in expected credit losses are recognised in profit or loss as impairment or reversal of impairment, respectively.

The Group and the Company apply a single definition of a default. A financial asset is considered creditimpaired upon:

  • default in the payment of coupon interest or principal due to inability to pay;
  • the commencement of insolvency proceedings.

Measurement of expected credit losses

Expected credit losses are equal to the product of the expected probability of default (PD), the expected loss given default (LGD) and the expected exposure at default (EAD). The risk parameters (PD and LGD) from external sources are used to calculate expected credit losses.

Probability of default (PD) is determined based on statistical methods or a combination of statistical methods and a structural model. As such, it is calibrated in time; it represents the current situation (point-in-time) and contains the most likely future economic circumstances, according to financial market participants. In the event that information on probability of default is not available from external sources, this parameter is derived from internal models; the parameters of a comparable business entity are used or, on the basis of the consolidated financial statements, the Altman Z-Score is converted into a credit rating.

To determine the expected loss given default (LGD), the guidelines of the CRR (Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, Article 161) are followed for the categories of exposures to central government units, central banks, regional and/or local government institutions and public sector entities for which information is not available from external sources. For the categories of exposures to companies, an own estimate of loss is used, ranging between 63% and 65%.

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2.5.4 Income and expenses from financial investments

Income from financial investments comprises interest income, dividends, changes in fair value, gains on disposal and other financial income. Expenses from financial investments comprise expenses from impairment of investments, losses on disposal and other expenses from financial investments.

Interest income is recognised in profit or loss using the effective interest method, except for financial assets classified at fair value through profit or loss.

Income from dividends is recognised in profit or loss when it is authorised for payment.

Income and expenses due to changes in fair value of financial assets relate to the results of subsequent measurement of the fair value of financial assets measured at fair value through profit or loss.

Gains and losses on disposal of financial assets relate to the derecognition of financial assets other than financial assets measured at fair value through profit or loss. Gain is the difference between the carrying amount of a financial asset and its sales price.

Income and expenses from financial investments include net unrealised gains and losses on unit–linked life insurance assets. These income and expenses represent changes in the fair value of unit-linked life insurance assets.

2.5.5 Non-financial assets

Non-financial assets include investments in subsidiaries, associates and joint ventures, intangible assets, property, plant and equipment, investment property, right-of-use assets, non-current assets held for sale and other assets. The accounting policies for each of these assets are presented below.

2.5.5.1 Investments in subsidiaries

An investment in a subsidiary is considered to be an investment in a company that is directly or indirectly controlled by Zavarovalnica Triglav.

Investments in subsidiaries are measured in the separate financial statements at cost less accumulated impairment losses.

The initial recognition of the investment is made on the date on which the acquirer obtains the right to control the acquiree. Increases in the share capital of subsidiaries with in-kind contributions are measured at estimated fair value or carrying amount, where justified.

Subsidiaries are included in the consolidated financial statements under the full consolidation method.

2.5.5.2 Investments in associates and joint ventures

An investment in an associate is an investment in a company in which Zavarovalnica Triglav has a direct or indirect significant influence (directly or indirectly between 20% and 50% of voting rights), provided by the possibility of participating in the company's financial and business policy decisions, but not by controlling these policies.

Joint ventures are companies that are jointly controlled by the Group and the Company together with a contract partner based on a contractual agreement.

Investments in equity instruments of associates and joint ventures are accounted for in the separate and consolidated financial statements under the equity method. An investment in an associate or joint venture is initially recognised at cost. The carrying amount of the investment is subsequently adjusted to change the Group's and the Company's share in the associate's or joint venture's net assets as of the acquisition date. Goodwill relating to an associate or joint venture is included in the carrying amount of the investment. Signs of impairment are tested at each reporting date. If the recoverable amount is lower than the carrying amount, impairment up to the level of the recoverable amount is carried out.

The corresponding share of an associate's and joint venture's profit or loss is recognised in profit or loss. The corresponding effects included in other comprehensive income of an associate or joint venture are recognised in other comprehensive income.

Upon loss of significant influence over an associate or loss of joint control of a joint venture, each retained investment is measured at its fair value. The difference between the carrying amount of the associate or joint venture and the fair value of the retained investment is recognised in profit or loss.

2.5.5.3 Business combinations and goodwill

For business combinations, the provisions of IFRS 3 Business Combinations and IFRS 10 Consolidated Financial Statements apply, except in the case of business combinations involving entities under common control. In such cases, the carrying amount method, as permitted by IFRS 10 (paragraph B86), is applied.

Business combinations not under common control

The acquisition method is applied for business combinations not under common control. The acquisition date is the date on which the acquirer obtains the right to control the acquiree. The identifiable assets acquired and liabilities assumed are determined and measured at their acquisition-date fair values. In each business combination, the non-controlling interest is also measured at the current proportionate share of the equity interests in the acquiree's recognised net assets.

Goodwill arises on the acquisition of a subsidiary if the excess of the sum of the consideration given measured at fair value is greater than the net amount of the acquiree's assets acquired and liabilities assumed. If the difference is negative, the gain is recognised in full in profit or loss. Contingent consideration at fair value is also included in the consideration. After initial recognition, goodwill is measured at cost less accumulated impairment losses.

For business combinations not under common control, the prospective method is applied, with accounting recognised at the transaction date, and no effect on the financial statements of prior periods.

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Business combinations under common control

In business combinations involving entities under common control, the transaction is not treated as a business combination in accordance with IFRS 3, but is accounted for using the carrying amount method. Under this method, the assets and liabilities of the acquiree are transferred at their carrying amounts, goodwill is not recognised, and any differences arising on the elimination of intercompany transactions are recognised directly in equity.

In a business combinations under common control, the retrospective method may be applied, whereby the acquirer's financial statements for prior periods are restated as if the business combination had occurred in the past.

2.5.5.4 Intangible assets

Intangible assets include goodwill and other intangible assets.

At initial recognition, other intangible assets are recognised at cost. At subsequent measurement, intangible assets are disclosed at cost less accumulated amortisation and accumulated impairment loss.

The useful life of all other intangible assets of the Group and the Company is assessed as finite.

Intangible assets with a finite useful life are amortised over their useful life. Amortisation is calculated individually using the straight-line amortisation method for each item, with the exception of goodwill, which is not amortised. Intangible assets are amortised when they are available for use. Amortisation costs of intangible assets with a finite useful life are recognised in profit or loss.

The appropriateness of the amortisation period and the amortisation method of intangible assets with a finite useful life is assessed at least at the end of each reporting period. Changes in the expected useful life or expected pattern of consumption of future economic benefits embodied in the asset are treated as changes in the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.

At least once a year, at the end of the reporting period, it is assessed whether there are any signs of impairment of intangible assets with a finite useful life. In the case of any signs of impairment, assets are impaired and losses recognised in profit or loss.

An intangible asset is derecognised upon disposal (i.e. the date on which the recipient acquires control of the asset) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of an asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss.

2.5.5.5 Property, plant and equipment

Property, plant and equipment are accounted for using the cost model. At initial recognition, the cost includes the purchase price and all costs necessary to bring the asset to working condition for its intended use.

After initial recognition, property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Property, plant and equipment are depreciated when they are available for use. Depreciation is calculated using the straight-line depreciation method. Residual value, useful life and depreciation methods of property, plant and equipment are checked at the end of each financial year and adjusted if necessary. Changes are treated as changes in estimates.

Assets under construction or in production are not depreciated until they are available for use. Depreciation of a property, plant and equipment asset ceases when it is derecognised.

A property, plant and equipment asset or any significant part that was initially recognised is derecognised upon disposal (i.e. the date on which the recipient acquires control of the asset) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of an asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss upon derecognition.

Maintenance and repair costs are recognised in profit or loss in the period in which they are incurred. Further investments that increase future economic benefits increase the value of property, plant and equipment.

Both the Group and the Company disclose the fair value of property, plant and equipment in the notes to the financial statements. The method of determining the fair value is described in more detail in Section 2.5.10.

2.5.5.6 Investment property

Investment property comprises land and buildings intended for lease. Real property is defined as investment property if it is not used for own activity or if only an insignificant part of the building is used for own activity.

The guidelines on the recognition, valuation and derecognition method of investment property are the same as those for property, plant and equipment and are described in Section 2.5.5.5.

All income from investment property relates exclusively to leases and is disclosed in profit or loss under other operating income. Expenses from investment property relate to depreciation and maintenance costs of investment property and are disclosed under other operating expenses in profit or loss.

Both the Group and the Company disclose the fair value of investment property in the notes to the financial statements. The method of determining the fair value is described in more detail in Section 2.5.10.

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2.5.5.7 Right of use assets

Whether a contract contains a lease is assessed at the inception of the contract. A contract contains a lease if it conveys the right to control the use of the identified asset for a period of time in exchange for consideration.

The Group and the Company use a uniform approach to recognition and measurement for all leases, except for short-term leases (up to 12 months) and leases of low-value assets (up to EUR 4,300).

An asset acquired under a lease is recognised as right-of-use assets and lease liabilities. Assets and liabilities are recognised in the amount of the present value of lease payments to be made in accordance with the concluded lease contract. Future lease payments are discounted at the interest rate implicit in the lease or at incremental borrowing rate if the interest rate implicit in the lease cannot be determined.

The calculation of right-of-use assets also takes into account any initial direct costs and an estimate of any removal and restoration costs.

The incremental interest rate is determined based on the interest rate for risk-free government bonds at the level of the individual country where the Group operates and the credit spread.

Right-of-use assets are measured using the cost model. The initial value of right-of-use assets is reduced over the life of the asset by depreciation and impairment losses and adjusted for remeasurement of the lease liability. After initial recognition, lease liabilities are increased by interest and decreased by lease payments.

The right-of-use assets and lease liabilities are disclosed in the statement of financial position as separate items.

Modifications related to leases may be a result of:

  • modifications of agreed lease terms and conditions and
  • modifications of accounting estimates related to leases.

Modifications of agreed lease terms and conditions relate to changes in the scope of lease, modifications of lease consideration or modifications of the lease term. In these cases, lease modification is calculated in two ways:

  • the modification is treated as a separate lease.
  • to modify the terms and conditions, the existing lease contract is amended.

Lease modification is treated as a separate lease only when it involves adding one or more underlying assets at a price applicable in the event of an independent lease of that added asset. In this case, lease is accounted for as a separate lease, independently of the original lease, and the accounting for the original lease continues unchanged.

In contrast, if a modification is not a separate lease, the accounting reflects that there is a linkage between the original lease and the modified lease. The existing lease liability is remeasured as follows:

  • The new amount of lease consideration is taken into account.
  • In the case of adding a new asset, the total consideration is evenly distributed among all underlying leased assets.
  • The new term of the lease is taken into account.
  • When remeasuring lease liabilities, the new discount rate effective at the time of modification is taken into account.

On the other hand, based on the difference between the newly measured liability and the balance of liabilities before the modification, an appropriate adjustment is made to right-of-use assets, resulting in a change in the amount of depreciation.

In the event of a change in the accounting estimate in respect of leases, the lease liability is remeasured to take into account the new discount rate effective at the time of the modification. The amount from the remeasurement of the lease liability is recognised as an adjustment to the value of the right-of-use asset. If the carrying amount of a right-of-use asset is zero and the lease liability is further reduced, the remaining amount of remeasurement is recognised in profit or loss.

In the case of leases with an indefinite term, the term of the lease is assumed in accordance with the strategy period. The assessment of the contract term is reviewed every three years.

2.5.5.8 Non-current assets held for sale

Non-current assets held for sale are those non-financial assets whose value will be recovered through sale instead of through continuing use. The condition for the classification into the category of noncurrent assets held for sale is met when sale is highly probable and the asset is available for immediate sale in its present condition. The management is committed to a plan to sell the asset, which must be carried out within one year of the asset being classified into this category.

At recognition, non-current assets held for sale are measured at the lower of carrying amount before classification and fair value less costs to sell. Costs to sell are expenses that are directly attributable to the disposal of an asset (disposal group), excluding financial expenses and tax expenses.

The same applies to the subsequent measurement of these assets. An impairment loss from the initial or subsequent write-off of an asset to fair value less costs to sell or gains on subsequent increases in fair value less costs to sell which may not exceed any accumulated impairment loss.

When property, plant and equipment or intangible assets are classified as held for sale, they are no longer amortised. They are presented separately in the statement of financial position as noncurrent items.

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2.5.5.9 Other assets

Other assets include materials inventories, short-term deferred expenses and accrued income. At initial recognition, inventories are measured at cost increased by direct costs of procurement. For subsequent measurement, inventories are disclosed at the lower of cost less direct costs of procurement or net realisable value.

Short-term deferred costs or expenses are amounts that will impact profit or loss in the following accounting periods. They are accrued in order to ensure an even impact on profit or loss, or are deferred because they have already been paid but have not yet been incurred.

Other assets also include accrued income for goods and services supplied to clients whose performance obligations have already been met.

2.5.5.10 Impairment non-financial assets

For all non-financial assets, except goodwill, the Group and the Company assess at each reporting date whether there are any signs of impairment. If there are signs of impairment, an impairment test is performed. An impairment test for goodwill is performed at the reporting date.

Assessment of impairment signs of non-financial assets

Signs of impairment of investments in subsidiaries are assessed on a yearly basis. The assessment takes into account signs from external sources of information (significant changes in the environment with a negative impact on the company, changes in market interest rates and returns on assets that affect the recoverable amount of assets, unexpected falls in market values of assets, etc.) and from internal sources of information (statutory changes, changes in management, change in the volume of business, the company's deteriorated economic performance).

Signs of impairment of land and buildings (classified as property, plant and equipment, investment property or right-of-use assets) are assessed on a yearly basis. The assessment takes into account signs from external sources (changes in the real property market) and internal sources (depletion, obsolescence, inability to lease or generate positive cash flows from operations).

If there are signs of impairment, an impairment test is performed, and the Group and the Company estimate the asset's recoverable amount. If the asset's carrying amount exceeds its recoverable amount, the asset is impaired.

Impairment test of investments in subsidiaries

The basis for performing an impairment test is IAS 36, which defines the recoverable amount of an asset or cash-generating unit as the higher of two items:

  • fair value less costs of disposal or
  • value in use.

Impairment tests of investments in subsidiaries are performed by external chartered and internal business valuator using valuation models, taking into account International Valuation Standards.

The valuation procedure includes at least:

  • an analysis of the wider environment of society (macroeconomic and institutional);
  • an analysis of the immediate environment (insurance market and markets of other relevant activities);
  • an analysis of the company's business model and operations;
  • an analysis of the company's competitive position in the market;
  • an analysis of the achievement of the plan in terms of the adequacy of planning or the ability to implement a new plan;
  • the selection of appropriate methodology and valuation methods according to the standards, purpose (for accounting purposes) and subject of valuation (business activity);
  • making and estimating assumptions consistent with the analysis;
  • estimating the cost of capital based on market parameters;
  • valuation;
  • a sensitivity analysis of assumptions to valuation and estimated range.

The key bases and sources for valuation are:

  • environmental data obtained from local regulatory institutions and statistical offices, the European Central Bank and the International Monetary Fund;
  • an assessment of profit or loss and the statement of financial position for the year in question, the business plan of each company approved by the supervisory body of each company for the year in question and the strategic plan of each company for the coming strategic period;
  • documentation and information obtained from the management and other key persons of the company being valued;
  • expert assessments of the relevant internal departments of Zavarovalnica Triglav and its subsidiaries or Group companies.

An impairment loss is measured as the difference between the asset's carrying amount and its recoverable amount and is recognised in profit or loss.

Impairment of non-financial assets is recognised in profit or loss.

Impairment test of land and buildings

In the case of individually material assets, an impairment test is performed individually. The impairment test of the remaining assets is carried out at the level of cash-generating units.

In determining fair value less costs to sell, International Valuation Standards (IAS), Slovenian Accounting Standard 2 – Valuation of Real Property Rights and Slovenian Accounting Standard 8 – Valuation for Financial Reporting are taken into account. Market valuation methods are used in the valuation, such as the market approach, the income approach and the subdivision development method. The valuation is performed by an independent certified real estate valuer.

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The market approach is used as the primary method of valuation, as the valuation by this method is also the best indicator of the value of real property rights, but only in cases where there are sufficient transactions with comparable real property available. In the cases where the market analysis is not a sufficiently credible indicator to prepare a valuation, the valuation is made based on other valuation methods.

Where an income approach is used, potential market rent and stabilised income are assessed. These data are obtained by analysing current rents and actual collected rent for similar real property in the vicinity and based on the comparable real property available in the vicinity of the real property under valuation. The capitalisation rate is determined by the market analysis method based on the calculated ratio of stable profit and the sales price of real property. Transaction data are obtained through market analysis and monitoring and the real estate valuer's own database.

In the case of large undeveloped building land, where a detailed design is defined and where there is no similar land on the market, the assessment is also made using the subdivision development approach. The basis for using this method is the assumption that a rational investor will not sell the land at a lower price than the potential return generated through land development.

For non-financial assets, an assessment is made at each reporting date to determine whether there is any indication that impairment losses previously recognised no longer exist or have decreased. If any such indication exists, the recoverable amount of the asset is estimated. A previously recognised impairment loss is reversed only if the assumptions used to determine the asset's recoverable amount have changed since the last impairment loss was recognised. A reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor does it exceed the carrying amount that would have been determined without depreciation, if no impairment loss had been recognised for the asset in previous years. Such reversal is recognised in profit or loss.

Goodwill impairment test

Due to the need for impairment, goodwill is tested for impairment annually at the reporting date. In accordance with IAS 36, it is assessed whether there are any signs of impairment of the cash-generating unit to which goodwill was allocated. The impairment testing and the assessment of required impairment is performed by assessing the recoverable amount of this cash-generating unit using the discounted cash flow method. If the recoverable amount exceeds the carrying value, goodwill is not impaired.

The key assumptions included in the calculation of the recoverable amount are the cash flows realised and comparison with planned, expected cash flows based on available management plans and the discount rate calculated as the required rate of return using the CAPM model.

Goodwill impairment is recognised in profit or loss.

2.5.6 Equity and liabilities

2.5.6.1 Equity

Share capital equals the nominal value of paid-up ordinary shares denominated in euros. If the Company or a subsidiary acquires treasury shares, i.e. Zavarovalnica Triglav's shares, their value is disclosed as a deductible item of the Group's equity. In accordance with the requirements of the Companies Act (ZGD-1), treasury share reserves are created in the same amount.

Share premium are payments above the nominal amounts of shares or other capital payments in line with the Articles of Association. The effects of acquisition of non-controlling interests are also recognised in the consolidated financial statements under share premium.

The Company's reserves from profit are statutory, legal and other reserves from profit and treasury share reserves. The Company's legal reserves are created and used in accordance with the ZGD-1. Together with share premium, they must equal at least 10% of the share capital. This is the Company's tied-up capital set aside to protect the creditor's interests. The Company's statutory reserves are created in the amount that equals up to 20% of the share capital. The Company creates statutory reserved based on a decision by the Management Board to allocate up to 5% of net profit in a financial year to statutory reserves, decreased by any amounts used to cover retained loss, legal reserves and reserves from profit. Statutory reserves may be used to cover net loss for the year and loss brought forward, for treasury share reserves, increase share capital from the Company's assets and regulate the dividend policy.

In accordance with the ZGD-1, the Company's Management Board may allocate up to one half of the amount of the net profit remaining after the appropriation of the profit for the purposes required by law to create other reserves.

Reserves of subsidiaries are formed and used in accordance with the legislation of the countries in which these companies operate.

Basic earnings per share are calculated by dividing the shareholders' net profit by the weighted average number of ordinary shares, excluding ordinary shares held by the Group or the Company.

The Group and the Company do not have dilutive potential ordinary shares, thus the basic and diluted earnings per share are the same.

2.5.6.2 Subordinated liabilities

Subordinated liabilities include subordinated debt instruments for which it was agreed in the underlying agreements to be paid last in the event of the bankruptcy or liquidation of the company that issued these securities. Subordinated liabilities are measured at amortised cost in the financial statements.

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2.5.6.3 Employee benefits

Employee benefits comprise provisions for jubilee and retirement benefits and unused leave. Provisions for jubilee and retirement benefits are calculated using the actuarial valuation method, i.e. the projected unit credit method or the accrued benefits based on service method. In line with IAS 19, the calculation is based on the following actuarial assumptions:

  • demographic assumptions (mortality and early termination of employment);
  • financial assumptions:
  • the discount rate taking into account the yield on government securities at the balance sheet date and
  • wage growth taking into account inflation, age, promotion and other factors such as supply and demand in the employment market.

Provisions for unused leave are calculated as the value of gross wage plus taxes for the period of unused leave. Provisions are undiscounted.

Changes in provisions for employee benefits due to payments and new provisions made are recognised in profit or loss under operating expenses (labour costs). Revaluation of provisions from an increase or decrease in the present value of liabilities due to changes in actuarial items and experience adjustments is recognised as actuarial gains or losses as follows: for provisions for retirement benefits in other comprehensive income and for provisions for jubilee benefits in profit or loss.

2.5.6.4 Operating and financial liabilities

Operating liabilities are recognised in the statement of financial position when the payment of a liability results from a contractual obligation. Operating liabilities are disclosed at amortised cost.

At initial recognition, financial liabilities are measured at cost based on the relevant documents on their origin. They are decreased by paid amounts and increased by accrued interest. Financial liabilities are disclosed at amortised cost in the financial statements. Interest paid on loans taken is recognised as expense and accordingly accrued over the term of the underlying loan.

2.5.7 Government grants and government assistance

Funds received directly or indirectly by the Group and the Company from the state, government agency or similar bodies at local, national or international levels are considered government grants or assistance. The received government grants are not the result of the performance of ordinary commercial transactions which a company receives in exchange for the provided service or supply of goods. A government grant means the transfer of funds to the Group and the Company in exchange for taking into account specific circumstances in the past or future.

When accounting for a government grant, it is assessed whether it is conditional or unconditional. If the government grant is conditional, provisions are recognised for its possible future recovery.

The calculation of a government grant is made using the income approach, which provides for the recognition of a government grant in profit or loss. A government grant is recognised in profit or loss as income over the period necessary to match them with the related costs, for which they are intended to compensate. The grants received for costs already incurred are recognised immediately.

Government grants related to assets which are conditional on the purchase, construction or otherwise acquired asset are recognised as deferred income, which the Group and the Company recognise in profit or loss on a straight-line basis over the useful life of the asset.

Grants related to income, i.e. grants not related to assets, are recognised as a deduction of related expenses.

2.5.8 Operating expenses

Gross operating expenses are recognised on an accrual basis as historical costs by nature. They are subsequently segregated during the accounting process into costs attributable to insurance contracts and costs not attributable to insurance contracts. Under the IFRS 17 functional groups, attributable costs are divided into acquisition costs, claim handling costs, management costs and other administrative costs and, as such, are attributed to the individual groups of insurance contracts.

2.5.9 Taxes and deferred taxes

Tax expense comprises current tax expense, top-up (minimum) tax and deferred tax income or expense.

Short-term income tax assets and liabilities are measured at the amount expected to be paid to the tax authorities. The tax rates and tax laws used to calculate the amount are those effective as at the reporting date in the countries where the Group and the Company operate and earn taxable profit.

The top-up (minimum) tax is calculated in accordance with the applicable legislation adopted by each jurisdiction, as well as OECD guidelines and commentaries published up to the reporting date.

Deferred tax assets and liabilities are calculated for temporary differences between the value of assets and liabilities for tax purposes and their carrying amount.

Deferred tax assets are recognised for all deductible temporary differences, transfer of unused tax credits and any unused tax losses. Deferred tax assets are recognised if it is probable that taxable profit against which deductible temporary differences can be utilised and the transfer of unused tax credits and losses will be available, except:

  • if the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction other than a business combination and which, at the time of the transaction, does not affect either the accounting or the taxable profit;
  • with respect to deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are only recognised to the extent that it is probable that the reversal will not occur in the foreseeable future and that taxable profit will be available against which the temporary difference will be utilised.

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The carrying amounts of deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available against which deferred tax assets will be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it becomes probable that future taxable profits will be available against which the deferred tax assets can be utilised.

In assessing the collectability of deferred tax assets, the Group and the Company rely on the same assumptions that they use in other parts of the financial statements.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

  • if the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination and which, at the time of the transaction, does not affect either the accounting or the taxable profit;
  • with respect to taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when it is possible to control the timing of the reversal of temporary differences and that it is probable that the reversal will not occur in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates/laws that have been enacted or substantively enacted as at the reporting date.

The effects of the recognition of deferred tax assets and liabilities are recognised as income or expense in profit or loss, except when the tax arises from an event recognised in other comprehensive income. Deferred tax assets and liabilities relating to the same tax jurisdiction, period and taxable unit are offset at the level of an individual company.

In the case of consolidation, temporary differences arising from differences between the official financial statements of a subsidiary and the adjusted financial statements for consolidation purposes and those differences arising from consolidation procedures may be recognised.

2.5.10 Fair value measurement152

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement of the fair value of assets or liabilities takes into account their characteristics and assumes that the asset or liability is exchanged in an orderly transaction under current market conditions in the principal market or in the most advantageous market for those assets or liabilities.

Financial assets classified as financial assets at fair value through profit or loss and those at fair value through other comprehensive income are measured at fair value. However, for financial assets measured at amortised cost, their fair value is disclosed.

The fair value of financial instruments traded on regulated financial markets is determined based on quoted prices at the reporting date.

If there is no active market for a financial instrument, its fair value is measured by various valuation techniques. An active market is a market in which transactions between market participants take place frequently enough and to a sufficient extent to provide price information on a regular basis.

Market activity, i.e. whether the market is active or not, is determined for each financial instrument according to the available information and circumstances. Factors that are important in assessing market activity include: the low number of transactions in a given time period, high volatility of quoted prices in a given time period or between different market makers, high price difference between supply and demand, the low number of market participants (fewer than 4). An important criterion, which includes all the above factors, for the activity of securities is the Bloomberg Valuation Service (BVAL) Score. Low scores of the indicator (below 3) indicate that the market is not active.

In determining the fair value of financial instruments, valuation methods are used at the comparable fair value of another instrument that has similar significant characteristics, as well as discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to determine the price of the instrument and if its reliability in estimating the prices obtained from actual market transactions has been demonstrated, such a technique will be used. The assumptions and estimates used contain certain risks regarding their actual fulfilment in the future. In order to reduce these risks, the assumptions and estimates used are tested in various ways (e.g. comparison of assumptions or estimates with the sector/industry, individual market companies and similar). In addition, when calculating the range of estimated value of an individual investment, a sensitivity analysis is performed for key value drivers such as: net sales income, the EBITDA margin, the financial intermediation margin, the rate of return on financial investment portfolio, operating expenses to total assets, cash flow growth and the discount rate. The discounted cash flow method uses estimated future cash flows and discount rates that reflect interest rates for comparable instruments.

For the purpose of disclosing fair value, the fair value of non-financial assets is also assessed, taking into account the market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

In assessing the fair value of own-use land and buildings and investment property, the income capitalisation approach, the market approach and the analysis of the most economical use for development land are used. The most important parameters included in the calculation are market prices of comparable real property and the capitalisation rate. Fair value is estimated by internal and external chartered business valuators, taking into account International Valuation Standards.

When estimating the fair value of a subordinated bond issued, the price according to the model (the discounted cash flow method) is taken into account, as the management assessed that the market was not active.

The fair value hierarchy is used to disclose the method of determining the fair value of assets and liabilities. This is determined by the inputs to the valuation technique used to measure fair value.

  • Level 1 inputs: unadjusted quoted prices in active markets under IFRS 13 for identical assets or liabilities that the entity can access at the measurement date. The quoted prices may be adjusted only exceptionally.
  • Level 2 inputs: are quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active and quoted prices that are observable.
  • Level 3 inputs: are prices that do not meet the standards for Level 1 or Level 2. The share of unobservable inputs used in value measurement models is considerable. Unobservable inputs have to use the assumptions that market participants would use when pricing the asset or liability, including risk assumptions.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

Financial investment type Value assessment method Material parameters Parameter weight applied Fair value
hierarchy
EXTERNAL APPRAISERS (market operator)
Debt securities – compound Stochastic model, HW1f and HW2f network models EUR SWAP interest rate curve, issuer credit spreads,
comparable issuer credit spreads, interest rate volatility,
correlation matrix, volatility index		 Level 2
Debt securities – compound with exposure to stock markets Stochastic model EUR SWAP interest rate curve, issuer credit spreads,
comparable issuer credit spreads, volatility index		 Level 2
Derivatives Black-Scholes model Volatility indices Level 2
BLOOMBERG BVAL
Debt securities – companies,
financial institutions and government		 Cash flow discounting according to the amortisation schedule EUR SWAP interest rate curve, issuer credit spreads,
comparable issuer credit spreads, indicative listing		 Level 2
INTERNAL APPRAISERS
Government debt securities Cash flow discounting according to the amortisation schedule Republic of Slovenia interest rate yield curve The yield curve of issuers from the Republic of
Slovenia, Bosnia and Herzegovina, Serbia, Montenegro and
North Macedonia		 Level 2
Debt securities – companies and financial institutions Cash flow discounting according to the amortisation schedule Republic of Slovenia interest rate yield curve,
issuer credit spreads		 Yield curve of the corresponding sovereign issuer, credit spreads
between 1.0% and 4.3%		 Level 2
Equity securities Cash flow discounting g (growth rate during the constant growth period) 2–2.1%
Discount rate 5.4–12.9% Level 3
Lack of control discount 10–21%
Lack of marketability discount 11–14%
Net asset value method Change in real property prices
Market approach MVIC/EBITDA, P/B
Equity investments in associates Equity method Accumulated gains and losses Level 3
Real property for own use Income approach, market approach, land residual method 7.5–15%, depending on risk/location
Investment property (analysis of the most economical use of development land) Capitalisation rates, market prices of comparable real property Market values based on information available Level 3

The fair value of assets and liabilities is shown in section 4.1.

The valuation techniques and market inputs used to develop these techniques are presented below.

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Statement of management's responsibilities Independent auditor's report 1. Financial statements

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Appendix

2.6 Significant accounting judgments,estimates and assumptions

The preparation of the financial statements in line with IFRS requires the use of judgments, estimates and assumptions that affect the value of assets and liabilities at the reporting date and the amount of income and expenses in the reporting period. Although the estimates used are based on the best knowledge of current events and activities, they may differ from the actual results. Estimates and assumptions are reviewed regularly and their adjustments are recognised in the period of the change.

The following is a summary of the accounting judgments, estimates and assumptions used in the preparation of the financial statements of the Group and the Company. Accounting policies for items subject to judgments and estimates are described in Section 2.5. The estimates used in the preparation of the financial statements for the financial year ended 31 December 2024 are presented in the disclosures of the items to which they relate.

Item in the financial statements/content Accounting judgement/estimate Assumptions and sources of uncertainty
Going concern The judgement of the Group and the Company as a going concern is prepared based on an assessment
of the risks and uncertainties to which the Group and the Company are exposed.		 Assumptions about future risk exposure and uncertainty in the business environment. A sensitivity
analysis of the Group's and the Company's profitability, financial position and liquidity to risks and
uncertainties.
Classification of insurance contracts Contracts concluded by the Group and Company are classified as insurance or financial contracts The assumption of material underwriting risk in relation to additional payouts in the event of a loss event.
according to their characteristics. The estimate of whether a contract issued is an insurance or financial
contract and the estimate of whether or not the contracts issued meet the criteria for contracts with
direct participation features have a significant effect on the further measurement and disclosure of
related items in the financial statements.		 Assumptions about the expected payout to the policyholder and the level of the policyholder's
participation in the return on the underlying assets.
Valuation of insurance contracts For the subsequent valuation of insurance contracts, the judgement on whether a simplified premium
allocation approach can be applied to the valuation of the contracts issued is relevant.		 Assumptions about the term of the contract, the appropriate level of aggregation of contracts and
assumptions relating to the onerousness of contracts.
Also important is the judgement on whether the individual components of contracts should be separated
(and valued separately), and the judgement about the appropriate level of aggregation of contracts into
portfolios.
The judgements needed to identify onerous contracts are also important.
The calculation of insurance/reinsurance contract assets and
liabilities		 Estimates of expected future cash flows and the discount rates and illiquidity premiums used significantly Assumptions about the expected claims development and claims ratios of non-life insurance contracts.
impact the calculation of assets and liabilities. Assumptions about the expected mortality, policyholders' future behaviour and claims ratios of additional
life insurance riders.
Assumptions about expected movements in interest rates and costs and about expected inflation and
economic growth.
The calculation of risk adjustment The judgement or selection of the most appropriate techniques for estimating the risk adjustment for
non-financial risk and the estimation of the adjustment are important.		 Assumptions about the required risk adjustment for non-financial risk in non-life insurance contracts.
Financial assets The assessment of the appropriateness of the business model has a significant impact on the subsequent Assumptions about the policy and objectives related to financial assets portfolios.
valuation of financial assets. Assumptions on how the performance of each business model will be monitored.
Assumptions about the risks affecting the performance of each business model.
Assumptions about the expected frequency, volume and timing of sales of financial assets of each
business model.
Financial assets The valuation of financial assets is also significantly affected by the assessment whether the contractual
cash flows of a financial instrument are solely repayments of principal and interest on the outstanding
principal amount (the SPPI test).		 Assumptions about expected cash flows related to an instrument.
Financial assets An important judgement is the assessment of impairment of financial assets, which involves the selection Assumptions regarding expected cash flows.
of criteria for assessing whether credit risk of an investment has changed significantly between the time of
its recognition and the time of valuation, and the selection of the model used to measure expected credit
losses (ECL) impairment. The significant accounting estimate relates to the calculation of the required
impairment at the balance sheet date.		 The assumptions regarding the expected probability of default (PD) and the expected loss given default
(LGD).
Financial assets Financial assets are measured at fair value in the financial statements or their fair value is disclosed. The
fair value of financial assets is a significant accounting estimate when the fair values of assets are not
quoted on the active market (stock market).		 The estimate of comparable stock market transactions, interest rate curves, credit spreads, interest rate
volatility, stock index volatility, the estimate of expected cash flows, discount rates and growth rates.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

Item in the financial statements/content Accounting judgement/estimate Assumptions and sources of uncertainty
Investments in subsidiaries Investments in subsidiaries are investments in companies that are directly or indirectly controlled by
Zavarovalnica Triglav. The judgement whether the conditions of control in an individual company are met
is relevant.		 The existence of influence on the company based on voting rights or contractual agreements. Exposure
to variable return. Impact on return via impact on the company.
Investments in subsidiaries, associates and joint ventures Investments in subsidiaries are measured at cost in the Company's separate financial statements,
while investments in associates and joint ventures are measured using the equity method. A significant
judgement is the judgement of whether there are any signs of impairment of these investments. If any
sign of impairment exists, the significant accounting estimate relates to the calculation of the required
impairment at the balance sheet date.		 Assumptions about the wider and immediate environment of the company and the company's position
in the market, assumptions about the adequacy of the business model, predictions about the company's
future operations and its ability to implement plans, assumptions about the cost of capital and the long
term growth rate.
Goodwill At initial recognition, goodwill is measured at cost and subsequently assessed for impairment annually.
The amount of the required impairment is a significant estimate in the Group's financial statements.		 Assumptions about the company's future operations and its ability to achieve the set goals, the estimate
of the convergence of markets towards more developed ones, expected economic trends, discount rate,
the estimate of the necessary premium for specific risks.
Intangible assets, property, plant and equipment,
investment property		 Intangible assets, property, plant and equipment and investment property are measured in the financial
statements using the cost model. A significant estimate that affects the amount of amortisation expense
is the estimated useful life of assets.		 Expected physical wear and tear, technical and economic ageing of the asset. Expected legal or other
restrictions of use.
Property, plant and equipment, investment property Property, plant and equipment and investment property are measured in the financial statements
using the cost model. The fair value of these assets, which is determined for disclosure purposes,
is a significant estimate.		 Market prices of comparable real property, the expected rates of return on real property (potential
market rent and stabilised income), the capitalisation rate.
Property, plant and equipment, investment property Property, plant and equipment and investment property are measured in the financial statements using
the cost model. When compiling the financial statements, it is assessed whether there are any signs of
impairment of these assets. If any sign of impairment exist, an estimate of the necessary impairment is
a significant accounting estimate.		 Market prices of comparable real property, the expected rates of return on real property (potential
market rent and stabilised income), the capitalisation rate.
Assets and liabilities from received leases The amount of leased assets and related financial liabilities is measured upon recognition at the present
value of future lease payments. A significant estimate in determining the amount of assets and liabilities
is the assumed discount rate, and in the case of assets leased for an indefinite term also the estimate of
lease term.		 Assumption of interest rate and the necessary mark-ups.
The expected lease term.
Deferred tax assets Deferred tax assets are recognised in the financial statements if it is probable that taxable profit
against which deductible temporary differences can be utilised or carry out the transfer of unused
tax credits and losses. The judgement of the justification of created deferred tax assets is a significant
accounting judgement		 Assumptions about the future profitability of the Group companies and Zavarovalnica Triglav.
Employee benefits The calculation of provisions for termination and jubilee benefits is based on an actuarial valuation
method and therefore is a significant estimate in the financial statements.		 Demographic assumptions (mortality, early termination of employment) and financial assumptions
(discount rate, wage growth, inflation).

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

2.7 The merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d.

On 1 October 2024, the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. with the parent company Zavarovalnica Triglav d.d. was entered in the register of companies at the Ljubljana District Court, with the parent company becoming its universal legal successor. The accounting merger date was 31 December 2023. The merger was carried out as part of the optimisation of the Group's operations, primarily due to legislative changes and the subsequent termination of supplemental health insurance, which was the core business of the transferor company.

The merger was accounted for as a business combination under common control in the Company's separate financial statements, using the carrying amount method. The merger method was applied, whereby the individual assets and liabilities of the two companies were aggregated. The effects of the elimination of intercompany transactions were recognised directly in the parent company's equity. The merger had no impact on the Company's share capital.

The retrospective method was applied in the preparation of the financial statements, with figures for the comparative period restated as if the merger had occurred in the past. The effects of these restatements on the Company's separate financial statements are presented below.

The merger had no impact on the Group's consolidated financial statements.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

31 December 2023
after the merger
(1=2+3+4)		 31 December 2023
elimination of
intercompany
transactions (2)		 31 December 2023
Zavarovalnica Triglav d.d.
(3)		 31 December 2023
Triglav, Zdravstvena
zavarovalnica d.d.
(4)		 1 January 2023
after the merger
(5=6+7+8)		 1 January 2023
elimination of
intercompany
transactions
(6)		 1 January 2023
Zavarovalnica Triglav d.d.
(7)		 1 January 2023
Triglav, Zdravstvena
zavarovalnica d.d.
(8)
ASSETS 2,998,918,684 -26,235,909 2,945,426,055 79,728,538 2,813,366,207 -3,735,886 2,730,774,810 86,327,284
Property, plant and equipment 68,853,107 0 68,609,478 243,629 70,920,360 0 69,115,897 1,804,464
Investment property 43,427,181 0 43,427,181 0 43,377,173 0 43,377,173 0
Right-of-use assets 4,813,383 0 4,356,487 456,897 4,369,011 0 3,940,725 428,285
Intangible assets and goodwill 31,039,279 0 30,879,149 160,131 31,295,721 0 30,917,910 377,811
Deferred tax assets 19,166,719 0 12,798,238 6,368,481 13,035,369 0 10,921,528 2,113,841
Investments in subsidiaries 195,624,458 -26,235,909 219,360,367 2,500,000 181,631,957 -3,735,886 185,360,343 7,500
Investments in associates and joint ventures 37,218,841 0 37,218,841 0 37,369,536 0 37,369,536 0
Financial investments 1,955,647,480 0 1,888,444,496 67,202,985 1,959,726,933 0 1,882,599,813 77,127,120
Financial investments at FVOCI 1,161,179,788 0 1,094,172,694 67,007,095 1,220,117,377 0 1,143,332,952 76,784,424
Financial investments at AC 142,843,306 0 142,843,306 0 151,767,345 0 151,767,345 0
Financial investments at FVTPL 651,624,386 0 651,428,496 195,890 587,842,211 0 587,499,515 342,696
Financial contract assets 259,624,041 0 259,624,041 0 234,968,514 0 234,968,514 0
Financial contract assets at AC 86,215,285 0 86,215,285 0 99,398,021 0 99,398,021 0
Financial contract assets at FVTPL 169,625,986 0 169,625,986 0 131,403,313 0 131,403,313 0
Receivables from financial contracts 83,130 0 83,130 0 398,787 0 398,787 0
Cash from financial contracts 3,699,640 0 3,699,640 0 3,768,392 0 3,768,392 0
Insurance contract assets 10,959,726 0 10,958,826 900 7,395,480 0 7,395,480 0
Reinsurance contract assets 306,936,690 0 305,976,870 959,820 168,510,270 0 167,888,159 622,111
Non-current assets held for sale 1,141,578 0 0 1,141,578 0 0 0 0
Current corporate income tax assets 9,302,529 0 9,302,529 0 1,503,957 0 0 1,503,957
Other receivables 20,448,498 0 20,047,025 401,473 35,359,592 0 35,155,610 203,982
Cash and cash equivalents 31,906,343 0 31,679,444 226,899 21,111,319 0 19,296,850 1,814,470
Other assets 2,808,831 0 2,743,084 65,747 2,791,015 0 2,467,271 323,744

Business report Effect of the merger on Zavarovalnica Triglav's statement of financial position

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

31 December 2023
after the merger
(1=2+3+4)		 31 December 2023
elimination of
intercompany
transactions (2)		 31 December 2023
Zavarovalnica Triglav d.d.
(3)		 31 December 2023
Triglav, Zdravstvena
zavarovalnica d.d.
(4)		 1 January 2023
after the merger
(5=6+7+8)		 1 January 2023
elimination of
intercompany
transactions
(6)		 1 January 2023
Zavarovalnica Triglav d.d.
(7)		 1 January 2023
Triglav, Zdravstvena
zavarovalnica d.d.
(8)
EQUITY AND LIABILITIES 2,998,918,684 -26,235,909 2,945,426,055 79,728,538 2,813,366,207 -3,735,886 2,730,774,810 86,327,284
Equity 682,526,257 -26,235,909 669,221,118 39,541,048 691,858,436 -3,735,886 658,949,145 36,645,178
Share capital 73,701,392 -48,322,167 73,701,392 48,322,167 73,701,391 -25,822,144 73,701,392 25,822,144
Share premium 53,412,884 0 53,412,884 0 53,412,884 0 53,412,884 0
Reserves from profit 485,616,604 0 483,762,643 1,853,961 466,616,604 0 464,762,643 1,853,961
Accumulated other comprehensive income -30,153,273 0 -29,509,840 -643,433 -51,793,307 0 -46,309,356 -5,483,951
Retained profit/loss from previous years 104,730,894 22,086,258 68,191,612 14,453,024 203,780,821 22,086,258 164,656,172 17,038,392
Total net earnings for the period -4,782,244 0 19,662,426 -24,444,671 -53,859,958 0 -51,274,590 -2,585,368
Subordinated liabilities 49,994,402 0 49,994,402 0 49,941,796 0 49,941,796 0
Financial contract liabilities 259,624,041 0 259,624,041 0 234,968,514 0 234,968,514 0
Insurance contract liabilities 1,919,950,640 0 1,885,673,792 34,276,847 1,732,053,911 0 1,688,411,267 43,642,644
Reinsurance contract liabilities 0 0 0 0 4,052,657 0 4,052,384 273
Provisions 16,023,250 0 14,323,506 1,699,744 18,117,857 0 17,035,092 1,082,765
Lease liabilities 5,033,767 0 4,573,011 460,757 4,491,124 0 4,054,668 436,456
Other financial liabilities 22,768 0 22,768 0 22,640 0 22,640 0
Current corporate income tax liabilities 0 0 0 0 9,697,471 0 9,697,471 0
Other liabilities 65,743,560 0 61,993,418 3,750,142 68,161,801 0 63,641,833 4,519,968

Accounting report

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Appendix

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Business report Effect of the merger on Zavarovalnica Triglav's profit or loss and other comprehensive income

2023
2024
after the merger
and elimination of
discontinued operations
(1=3-2)		 2024
discontinued
operations
(2)		 2024
after the merger
(3)		 after the merger
and elimination
of discontinued
operations
(4=6-5)		 2023
discontinued
operations
(5)		 2023
after the merger
(6=7+8)		 2023
Zavarovalnica Triglav d.d.
(7)		 2023
Triglav, Zdravstvena
zavarovalnica d.d.
(8)
Insurance service result 129,154,926 5,539,543 134,694,470 59,321,919 -22,680,223 36,641,696 61,094,042 -24,452,346
Insurance income 911,051,366 52,453 911,103,819 792,319,901 193,275,962 985,595,863 775,637,370 209,958,493
Insurance service expenses -651,239,341 5,487,091 -645,752,251 -772,527,441 -215,956,185 -988,483,626 -753,990,974 -234,492,652
Net reinsurance service result -130,657,099 0 -130,657,099 39,529,459 0 39,529,459 39,447,646 81,814
Reinsurance income 93,070,175 0 93,070,175 227,396,192 0 227,396,192 226,043,570 1,352,623
Reinsurance expenses -223,727,274 0 -223,727,274 -187,866,733 0 -187,866,733 -186,595,924 -1,270,809
Investment reusult 134,861,313 0 134,861,313 69,821,254 -2,725,610 67,095,644 70,134,725 -3,039,081
Interest income calculated using the effective interest
method		 29,070,766 0 29,070,766 22,126,049 176,237 22,302,286 21,611,210 691,076
Dividend income 2,019,695 0 2,019,695 2,441,534 0 2,441,534 2,441,534 0
Net gains and losses on financial investments 98,758,150 0 98,758,150 43,819,372 -3,031,559 40,787,813 44,714,780 -3,926,966
Net gains / losses from FVTPL financial instruments 101,301,906 0 101,301,906 49,864,264 5,960 49,870,224 49,860,374 9,850
Net gains / losses from FVOCI financial instruments -2,543,756 0 -2,543,756 -6,044,892 -3,037,519 -9,082,410 -5,145,594 -3,936,816
Net impairment and reversal of impairment of
financial investments		 2,754,998 0 2,754,998 1,362,044 128,858 1,490,902 1,295,450 195,452
Other effects of investing activities 2,257,704 0 2,257,704 72,255 853 73,108 71,751 1,357
Financial result from insurance contracts -110,015,438 -113,374 -110,128,812 -62,796,223 -80,813 -62,877,036 -62,784,098 -92,938
Income from asset management 3,158,050 0 3,158,050 2,854,726 0 2,854,726 2,854,726 0
Non-attributable operating expenses -43,730,392 -236,860 -43,967,252 -39,651,436 -2,043,895 -41,695,332 -39,248,760 -2,446,571
Net other operating income and expenses -15,861,691 -59,651 -15,921,342 -46,756 449,475 402,719 -495,030 897,749
Net other financial income and expenses -7,006,800 -4,030 -7,010,829 -2,799,969 -11,357 -2,811,326 -2,818,078 6,752
Net impairment and reversal of impairment of non
financial assets		 -66,111 0 -66,111 -2,502,745 0 -2,502,745 -2,502,745 0
Gains and losses on investments in associates 9,098,991 0 9,098,991 18,585,761 0 18,585,761 18,585,761 0
Net other income and expenses 1,843,909 11,022,074 12,865,983 750,492 -683,446 67,046 740,963 -673,917
Earnings before tax from continuing operations 101,436,756 16,147,704 117,584,460 43,537,022 -27,775,868 15,761,154 45,561,505 -29,800,351
Tax expense from continuing operations -19,352,563 0 -19,352,563 -7,046,775 5,503,377 -1,543,398 -6,899,078 5,355,680
Income tax -16,595,675 3,552,495 -13,043,180 -10,092,384 0 -10,092,384 -10,092,384 0
Income/expense from deferred tax -2,756,889 -3,552,495 -6,309,384 3,045,609 5,503,377 8,548,986 3,193,306 5,355,680
Net earnings from continuing operations 82,084,193 16,147,704 98,231,897 36,490,247 -22,272,491 14,217,756 38,662,426 -24,444,671
Net earnings from discontinued operations 16,147,704 -22,272,491
Total net earnings 98,231,897 14,217,756

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

2.4 Foreign currency translation

2.5 Significant accounting policies

2.6 Significant accounting judgments, estimates and assumptions

2.7 The merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d.

Appendix

2024
after the merger
and elimination of
discontinued operations
(1=3-2)		 2024
discontinued
operations
(2)		 (3) 2023
after the merger
and elimination
of discontinued
operations
(4=6-5)		 2023
discontinued
operations
(5)		 (6=7+8) 2023
Zavarovalnica Triglav d.d.
(7)		 2023
Triglav, Zdravstvena
zavarovalnica d.d.
(8)
Other comprehensive income after tax from continuing operations 674,073 -2,979 671,094 31,742,116 1,545,820 33,287,936 28,447,417 4,840,519
Items which will not be transferred into income statement in the
following periods		 256,381 0 256,381 2,581,505 0 2,581,505 2,562,939 18,566
Actuarial gains/losses -31,908 0 -31,908 -1,575,443 0 -1,575,443 -1,594,009 18,566
Effect of capital instruments FVOCI 258,519 0 258,519 4,332,776 0 4,332,776 4,332,776 0
Tax effect from OCI which will not be reclassified into income statement 29,770 0 29,770 -175,828 0 -175,828 -175,828 0
Items which could be transferred into income statement in the
following periods		 417,692 -2,979 414,713 29,160,611 1,545,820 30,706,431 25,884,478 4,821,953
Accumulated financial income/expenses from insurance contracts -20,285,725 -3,819 -20,289,544 -37,170,823 -160,804 -37,331,627 -37,049,204 -282,423
Accumulated financial income/expenses from reinsurance contracts 1,427,411 0 1,427,411 4,091,190 0 4,091,190 4,090,372 818
Effect of debt instruments FVOCI 19,280,482 0 19,280,482 66,691,229 1,704,633 68,395,862 62,191,263 6,204,599
Tax effect from OCI which could be reclassified into income statement -4,476 840 -3,636 -4,450,985 1,991 -4,448,994 -3,347,953 -1,101,041
Other comprehensive income after tax from discontinued operations -2,979 1,545,820
Total other comprehensive income 671,094 33,287,936
Total comprehensive income 98,902,991 47,505,691

198

Business report

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

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Appendix

2.8 Risk management153

The Group's risk management system is defined by internal rules and a clear separation of the powers and responsibilities of the business functions, the Management Board, the Supervisory Board, and the key functions and other related areas that exercise supervision. It consists of effective processes used to constantly identify, assess and control assumed and potential or emerging risks. This allows the Group to take appropriate and timely action and keep their internally set risk profile at the level defined in the risk appetite. The system is clear, transparent and well-documented. More information on the Group's risk management system and processes is presented in Section 9 of the Business Report.

2.8.1 Risk exposure of the Group and the Company

Risk assessments by individual risk segment are based on market values for Solvency II purposes. The Group uses a regulatory method, which is assessed as appropriate for risk measurement in the context of the own risk and solvency assessment process.

The Group and the Company also underwrite unit-linked insurance contracts. In such cases, the Group and the Company are not exposed to investment risk. Certain tables below therefore show the value of these insurance contracts separately or are excluded from the presentation of exposure and risk assessment of the Group and the Company. The same applies to financial contract assets and liabilities.

Risk exposures are monitored in the same way at Group and Company levels. The risk exposures for both the Group and the Company are presented below, while the notes on risk management are described at Group level.

2.8.2 Underwriting risks

The Group assumes underwriting risks by underwriting various types of insurance policies. Its insurance portfolios are diverse in terms of products and so are their underwriting risks. Insurance is divided into non-life insurance, which includes health insurance and reinsurance, and life insurance, which includes pension annuity insurance. Insurance claims or insurance liabilities stemming from insurance policies are classified as life insurance liabilities that depend on biometric factors such as age, gender and health status of the person insured and non-life insurance liabilities that do not depend on biometric factors.

Non-life insurance liabilities include all non-life insurance claims, including health insurance and inward reinsurance claims, with the exception of non-life insurance claims paid out as an annuity. The latter are non-life insurance claims that depend on biometric factors of the injured party and are therefore classified as life insurance liabilities. Non-life insurance liabilities also include accident insurance claims stemming from life insurance policies, but which do not depend on the biometric factors of the injured parties.

Life insurance liabilities arise from insurance policies for traditional, unit-linked and pension annuity insurance. Life insurance liabilities include non-life insurance claims, which are paid out as annuities and which to the greatest extent stem from motor vehicle liability insurance.

The basic principle of the insurance business is adequate risk equalisation. The Group and the Company achieve this through sufficiently large homogeneous risk groups, which constitute the entire portfolio of the presented underwriting risks. The key prerequisite for adequate risk equalisation is efficient and correct classification of risks. A specific risk is assessed and classified into an appropriate group at the time of underwriting. Also considered are own findings, know-how and procedures, complemented by the expertise of reinsurers that assume a portion of the Group's underwriting risks.

The Group manages all identified risks in the context of the actuarial control cycle by regularly checking the deviations of the actual effects of risks from those anticipated. In the event of identified deviations, appropriate action is taken – each time by adjusting the design or criteria of an insurance product or the criteria for calculating insurance contract liabilities.

Underwriting risks are directly related to underwriting insurance policies, the amount of premiums and insurance contract liabilities. They are negatively affected by losses or adverse changes in the value of insurance liabilities due to inadequate pricing and assumptions taken into account in the calculation of insurance contract liabilities.

Underwriting risks are presented separately for non-life and life insurance.

2.8.2.1 Non-life underwriting risks154

The standard Solvency II formula is used for non-life underwriting risk assessment. The treatment under this formula differs from the IFRS treatment in terms of defining attributable and non-attributable costs and of calculating the premium provision.

Non-life insurance underwriting at Group level creates risks for an undercharged premium in relation to assumed risks, higher claims than liabilities for underwritten policies, higher deviations in the underwritten policies than expected and numerous or major catastrophic events. The described risks depend on their volatility and respective exposure.

Premium risk is the risk that written premium is insufficient to meet all obligations arising from the conclusion of an insurance contract. The risk depends on net premium income and the annual volatility of claims ratios, which are determined for each insurance segment using the standard formula. Their adequacy for the insurance portfolio is assessed annually in the context of own risk and solvency assessment; on average, it shows lower risks than predicted by the standard formula.Premium risk also depends on the diversification of their exposure by various insurance segment in the portfolio. Thus, the Group aims to ensure that the portfolio is appropriately diversified. Premium risk is managed through efficient monitoring of claims experience and a timely adjustment of pricing policy.

Risk of liabilities for incurred claims arises

when the actual realised claims deviate from the expected claims. Liabilities for incurred claims are formed based on the estimate of expected claims paid from valid non-life insurance contracts. With respect to the latter, a scenario is taken into consideration which, in an annual period, (statistically) occurs once in 200 years and which, in accordance with the standard formula used to measure the amount of the Company's and the Group's required capital for each insurance segment, depends on the best estimate of net claims provision and its annual volatility.The risk of liabilities for incurred claims is also influenced by the maturity of liabilities – the average duration of claim settlements – for which liabilities were made. This risk is higher in liabilities with long maturities than in liabilities with short maturities. With respect to liability insurance, more than half of foreseen claims are settled after one year, while in other insurance segments they are paid within one year. Liabilities with long maturities also include claims paid as annuities and therefore include the payment revision risk and other biometric risks, which are otherwise characteristic of life insurance products. The risk of liabilities for incurred claims is monitored by regularly checking the past amount of formed liabilities in relation to realised claims and, based on the findings, by adapting the processes of creating liabilities.

Lapse risk is realised when the lapse rates of underwritten non-life insurance contracts are higher than the expected lapse rates. At Group level, this risk is managed by regularly analysing lapse and adjusting products if necessary.

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Non-life insurance catastrophe risk means the risk of an unexpected one-off event with a loss potential that is considerably higher than the estimated average loss of Group insurance companies. Catastrophe risk at Group level is the highest where the insurance business is concentrated in a particular geographical area or sector/industry by individual insurance peril.

For non-life insurance, concentration risk is monitored. Concentration risk occurs upon the concentration of insurance business for individual insured perils in some geographical areas or sectors/industries. Concentration also arises as a result of correlation between individual insurance classes. In such case, even a single loss event may have a significant impact on the Company's ability to settle its obligations in a particular insurance segment. Concentration risk is managed through prudent assumption of underwriting risks, regular monitoring of portfolio exposures and appropriate reinsurance contracts.

Special attention is paid to all claims incurred at natural events. The results of various models are taken into consideration when assessing the loss potential of catastrophe events and then used to determine the reinsurance coverage. The reinsurance programme includes various types of reinsurance protection, which is used to manage underwriting risks.

Exposure of non-life insurance contracts to premium risk

Net premium earned by non-life insurance segment

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
adjusted
Health insurance 39,505,039 221,773,969 18,675,678 208,065,739
Income protection insurance 80,358,498 77,737,291 60,175,723 58,279,119
Motor vehicle liability insurance 222,481,125 181,146,680 126,039,776 100,595,568
Other motor vehicle insurance 204,263,442 171,824,106 156,675,571 137,279,638
Marine, aircraft and transport insurance 23,820,695 36,478,796 8,729,741 17,318,228
Fire and other damage to property insurance 246,016,363 233,539,195 114,714,082 109,099,495
General liability insurance 39,603,898 36,714,756 32,349,217 31,015,799
Credit and suretyship insurance 25,043,335 28,323,615 19,034,242 21,434,610
Legal expenses insurance 504,372 503,488 442,471 449,208
Assistance insurance 34,486,043 29,692,788 27,553,200 23,516,521
Financial loss insurance 4,023,104 3,812,697 2,733,814 2,391,247
Non-proportional health reinsurance 163,226 160,112 0 0
Non-proportional liability reinsurance 2,961,026 3,496,061 -160,634 -43,392
Non-proportional marine, aircraft and transport reinsurance 2,312,759 1,953,430 187,291 240,704
Non-proportional non-life reinsurance 32,674,043 22,605,748 4,671,239 2,182,752
TOTAL 958,216,969 1,049,762,730 571,821,411 711,825,237

The adequacy of written premium in relation to actual claims and costs arising from underwritten insurance contracts is also measured with claims and combined ratios, the movement and sensitivity of which are shown in the tables below.

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023 adjusted
Claims ratio 65.5% 76.3% 63.1% 77.7%
Expense ratio 28.1% 25.3% 29.1% 25.1%
Impact of 5% higher expense ratio on profit or loss -6,419,827 -4,401,017 -1,508,406 -2,804,668
Impact of 5% lower expense ratio on profit or loss 3,845,214 1,410,584 1,244,191 792,841

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Exposure of non-life insurance contracts to the risk of liabilities for incurred claims

Geographical diversification of non-life insurance exposure of the Group and the Company by written premium

Liabilities for incurred claims by non-life insurance segment*

for incurred claims in accordance with IFRS 17.

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
adjusted
Health insurance 6,792,834 19,328,518 3,965,594 17,621,030
Income protection insurance 32,451,162 33,558,484 26,910,011 27,946,633
Motor vehicle liability insurance 144,215,421 135,709,857 85,875,710 83,587,087
Other motor vehicle insurance 47,861,958 35,045,795 35,909,377 27,410,442
Marine, aircraft and transport insurance 37,108,105 35,846,486 17,144,118 19,635,840
Fire and other damage to property insurance 135,636,829 119,065,370 59,107,548 54,901,325
General liability insurance 54,329,700 54,290,226 46,033,077 47,717,372
Credit and suretyship insurance 3,481,348 2,605,282 2,072,799 1,188,365
Legal expenses insurance 225,913 106,747 224,406 105,476
Assistance insurance 5,667,718 4,555,262 4,322,461 3,242,310
Financial loss insurance 4,894,854 4,016,021 1,444,785 1,183,498
Non-proportional health reinsurance 116,935 134,892 0 0
Non-proportional liability reinsurance 979,929 1,472,733 50,105 25,051
Non-proportional marine, aircraft and
transport reinsurance		 2,105,017 1,983,027 0 0
Non-proportional non-life reinsurance 44,137,349 30,162,288 6,033,437 6,040,207
TOTAL 520,005,074 477,880,988 289,093,427 290,604,636

* The table shows the claims provisions under Solvency II valuation and also include liabilities payable as annuities. These provisions are part of liabilities

In addition to exposures, the assessment of the risk of liabilities for incurred claims is affected by volatility, which varies by insurance group. Insurance segments with low volatility include health insurance, motor vehicle liability insurance, other motor vehicle insurance and legal expenses insurance. In 2024, an increase was observed in the ratio of the exposure of insurance segments with high volatility compared to the exposure of insurance segments with low volatility. For the Company, the main reason is the termination of supplemental health insurance, while for the Group, the growth of the portfolio in the non-proportional non-life reinsurance and fire and other damage to property insurance segments is also

Catastrophe risk at Group level is the highest where the insurance business is concentrated in

leading to an increase in claims liabilities in both segments with higher volatility.

a particular geographical area or sector/industry by individual insurance peril.

Exposure of non-life insurance contracts to catastrophe risk

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
adjusted
853,676,497 989,115,289 699,396,116 849,648,285
137,879,107 115,929,526 16,787,000 14,252,139
107,807,267 106,062,592 7,397,536 7,288,979
49,688,303 45,285,103 4,562,086 3,961,948
40,401,789 43,689,980 3,188,821 5,107,547
32,065,466 31,372,947 20,756,193 21,834,448
58,104,568 30,795,406 56,330,330 29,608,634
33,301,018 30,146,357 3,352,475 2,877,798
28,178,706 29,925,349 26,126,116 28,256,416
225,236,175 183,480,949 90,102,268 54,529,728
927,998,941 1,017,365,921
1,566,338,895 1,605,803,498

Segment diversification of non-life insurance exposure of the Group and the Company by written premium

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
adjusted
Health insurance 48,525,422 225,426,715 22,878,266 207,942,121
Income protection insurance 90,480,160 86,734,853 65,025,353 62,857,350
Motor vehicle liability insurance 314,480,196 275,324,337 174,877,315 149,688,381
Other motor vehicle insurance 240,783,071 222,616,881 177,679,444 168,312,309
Marine, aircraft and transport insurance 78,331,559 88,244,978 55,668,960 61,787,322
Fire and other damage to property insurance 477,874,295 454,265,931 242,290,043 226,434,466
General liability insurance 76,361,783 70,403,385 52,000,400 50,508,080
Credit and suretyship insurance 49,827,700 47,931,095 29,455,937 28,484,795
Legal expenses insurance 859,977 758,810 795,601 654,715
Assistance insurance 42,369,696 38,618,946 32,999,038 30,364,587
Financial loss insurance 13,444,145 11,035,960 3,852,603 4,356,555
Non-proportional health reinsurance 288,603 263,190 0 0
Non-proportional liability reinsurance 7,432,559 7,084,828 6,523 35,255
Non-proportional marine, aircraft and transport reinsurance 3,329,753 3,301,497 144,704 140,908
Non-proportional non-life reinsurance 121,949,978 73,792,094 70,324,752 25,799,077
TOTAL 1,566,338,895 1,605,803,498 927,998,941 1,017,365,921

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Appendix

In 2024, three events were recorded and classified as catastrophe events. All events were hailstorms. The table presents the gross and net financial effects of these events for the Company. They are shown separately according to modelled and non-modelled perils, as the Company regularly models the perils that pose the greatest exposure or high risk. These perils are flood, hail, storm and earthquake. In both 2024 and 2023, the Company did not record any events from non-modelled perils.

Realised financial effect of catastrophe events at Zavarovalnica Triglav

Modelirane nevarnosti Nemodelirane nevarnosti
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
adjusted
Gross financial impact (EUR million) 28.8 162.6 0.0 0.0
Net financial impact (EUR million) 23.2 56.4 0.0 0.0

For Slovenia, the Company has several models at its disposal, on the basis of which the distribution of claims according to return periods for hail, storm and flood is determined. The table below shows probable maximum loss (PML) for a 200-year return period over a one-year period by peril. The table below presents data as at 31 December 2024, as this are the most recent modelled data.

Probable maximum loss (PML) for a 200-year return period by peril* at Zavarovalnica Triglav155

Modelled peril (EUR million) 31 Dec 2023
Hail 98.2
Storm 47.1
Flood 96.3

* In the case of availability of several models, the average of modelled results was taken into account.

Non-life insurance risk concentration

The fire and natural disaster insurance portfolio includes the largest number of individual large perils, which is also exposed to catastrophe perils; therefore, the greatest need for reinsurance coverage is related thereto. Compared to the preceding year, the Group's reinsurance coverage did not change significantly.

In ensuring an adequate reinsurance coverage at Group level, Pozavarovalnica Triglav Re plays an important role as it mainly assumes underwriting risks based on reinsurance agreements with individual Group companies. Triglav Re enters into outward reinsurance (retrocession) agreements for a portion of the risks it reinsures to effectively manage its exposures and own assets, as well as, indirectly, the Group's own assets.

The Group's largest retention amounts to EUR 12.4 million per peril, except for the nuclear peril. For the latter, the Group's largest exposure amounts to EUR 15.5 million, which the Group assumes from the Slovenian and the Croatian nuclear pool. Nuclear perils are characterised by an extremely low frequency, as no such claim has been reported in 30 years, and by a low or null correlation with other contingent liabilities.

Nuclear risk capacity assumed in the Triglav Group

Assumed capacity in EUR
2024 2023
Zavarovalnica Triglav, d.d. 10,000,000 10,000,000
Pozavarovalnica Triglav Re, d.d. 4,500,000 4,500,000
Triglav Osiguranje, d.d., Zagreb 1,000,000 1,000,000
Total after the event 15,500,000 15,500,000

As part of the own risk and solvency assessment process, a quantitative stress test was carried out in 2024 to assess the impact of climate change risk. For this purpose, the Company conducted a stress scenario test focusing only on risks deemed material in the short term. For the stress scenario test of the Company, the RCP 4.5 and RCP 8.5 scenarios were used, with the RCP 4.5 scenario representing a moderate emissions reduction policy and the RCP 8.5 scenario reflecting a high emissions maintenance scenario. The stress scenario test involved increasing the 200-year flood event loss for Slovenia by these factors, in line with the definition of the 200-year loss calculation according to the standard formula.

The results of the stress scenario revealed a significant impact on the gross risk assessment, with a considerably lower impact on the net risk assessment. This indicates that the Group's risks are effectively managed through adequate reinsurance protection. Therefore, it will be crucial for the Company and the Group in the coming years to evaluate the cost of maintaining similar reinsurance protection as currently in place. Reinsurance protection for 2025 is already in place at the time of drafting this report.

Management of non-life underwriting risks in 2024

The non-life underwriting risk profile remained largely unchanged in 2024, though the Company experienced an increase in premium. Unlike in 2023, there was no material increase in reserve risk due to claims development arising from natural disasters.

At Group level, Zavarovalnica Triglav underwrites the bulk of non-life underwriting risks, while Pozavarovalnica Triglav Re underwrites the majority of inward reinsurance underwriting risks. The reinsurance programme in place in 2024 did not differ significantly from that in place in 2023.

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2. Notes to the financial statements

Appendix

2.8.2.2 Life underwriting risks

The standard Solvency II formula is used for life underwriting risk assessment. The significant differences between the valuation of life insurance liabilities for financial and solvency reporting purposes are:

  • supplemental voluntary pension insurance products in the accumulation phase are classified as financial contracts for financial reporting purposes and are not subject to IFRS 17, whereas for solvency reporting purposes they are valued as part of life insurance;
  • only attributable costs are taken into account in calculating the present value of future cash flows for financial reporting purposes, whereas for solvency reporting purposes the total cost of life insurance is taken into account;
  • the solvency calculation of future cash flows takes into account contract boundaries for complementary insurance in line with Solvency II.

Life underwriting risks also include pension annuity insurance. The bulk originates from direct insurance business.

Life insurance liabilities largely arise from the life insurance portfolio. It comprises traditional insurance, mainly insurance with profit participation, and unit-linked insurance. Traditional insurance covers, which also include a savings component, are to the greatest extent linked to the life and health of the persons insured; they also include pure term insurance with mortality risk and several types of annuity insurance with longevity risk. Furthermore, longevity risk occurs in pension annuity insurance, particularly in supplemental voluntary insurance. The vast majority of insurance covers include statutory or contractual rights of policyholders to modify the insurance or reinsurance cover, i.e. to either early terminate or increase it in whole or in part, making them subject to lapse risk.

Life underwriting risks, which also stem from pension annuity insurance, include biometric and business risks. Biometric risks arise from the uncertainty of biometric assumptions in the calculation of the insurance liabilities, namely from mortality, longevity, health, morbidity and disability. Business risks stem from the uncertainty of assumptions regarding the amount of costs and the unfavourable realisation of policyholders' contractual options, the most important of which is early termination. If the assumptions in the insurance liabilities calculation change unfavourably, the premium and/or insurance contract liabilities may become too low and the insurance policy less profitable than expected at the time of its conclusion. Life insurance riders (additional coverage) are less dependent on biometric factors, as a result their risks are similar to the risks of non-life insurance. For example, accident insurance is less dependent on biometric data, therefore their risks are similar to the risks of non-life insurance.

Life underwriting risks include:

  • Mortality risk is associated with insurance that covers the risk of death if at the time of the person insured's death the coverage is greater than the provisions created. Whole life insurance products, credit life insurance products and life insurance products with a savings component pose the highest exposure for the Group and the Company. The sums insured in the event of death in these cases are high, while insurance contract liabilities are relatively low
  • Longevity risk at Group level stems mainly from pension annuity insurance products. With these policies, the amount of the basic annuity is determined in advance and is fixed. It is calculated based on paid-in assets and assumptions, in particular the life expectancy of the beneficiaries. If the overall life expectancy of the population insured increases significantly, the probability of death decreases, thereby increasing the liabilities of exposed policies. Due to the guaranteed amount of annuity, the Group and the Company face the risk of uncertainty due to longevity (guaranteed annuity rate risk) in some older pension insurance policies already during the accumulation period. The policyholder will be entitled to guaranteed payouts at the end of the accumulation period and the transition to the annuity period (payout period), i.e. when they will begin to receive life annuity, which will then be calculated based on the saved assets and by applying the aforementioned fixed factors. Longevity risk is not transferred to reinsurers, instead additional dedicated provisions are formed if necessary.
  • Disability and morbidity risk is associated with the products, which are underwritten by the Group's insurance companies and cover critical and serious illnesses and disability.
  • Lapse risk refers to products where the contractual provisions allow the policyholder to modify the policy. It includes the option of partial or full surrender, capitalisation, the decision to pay a lump sum instead of an annuity and similar. Whether this risk materialised depends on the policyholders' actions, and therefore it is more difficult to manage. This risk is reduced by designing the products that meet the clients' needs and by carefully managing the existing portfolio.
  • Expense risk is assumed by the Group and the Company in all life insurance products and non-life annuities. The expenses included in the policy are determined at the time of conclusion, either as a fixed amount or share. However, as insurance or annuity payments lasts many years, the increase in actual expenses may exceed the expenses attributed to the policy and thus have a negative impact on the profitability of the Group's insurance portfolio. This risk may be a consequence of miscalculations, the inadequacy of the cost model or incorrectly estimated future volume, trend or volatility of expenses.
  • Revision risk may affect non-life insurance claims paid out as annuity. Periodic annuity payments may be increased mainly due to the deterioration of the beneficiary's health or a change in legal practice, consequently increasing the nominal value of the Group's liabilities.
  • Life insurance catastrophe risk primarily includes cases of concentration and extreme events that may affect a large number of persons insured.

Contractual financial options and guarantees are embedded in a number of policies, with related risks assessed as part of the regular portfolio valuation. Among them is guaranteed interest rate risk, which arises in products with a savings component, such as traditional life insurance and annuity insurance. The guaranteed interest rate is set at the time of concluding an insurance policy and remains valid for the entire policy term. The risk arises when the actual rates of return on investment, which cover the benefits under the policies, are lower than the guaranteed interest rate. This risk is reduced by maximising the matching of assets and liabilities from these policies and by creating additional provisions, especially in the part of the portfolio of liabilities with higher guarantees. Similar risks due to a special guarantee for the return arise from the supplemental voluntary pension insurance policies during the saving period.

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Business report
Life underwriting risk assessment
------------------------------------------------------
in EUR
31 Dec 2024 31 Dec 2023
Triglav Group Amount Share of
risk in total
assessment		 Amount Share of
risk in total
assessment
Mortality risk 11,385,063 16% 12,058,728 17%
Longevity risk 9,497,442 13% 10,399,792 14%
Disability and morbidity risk 263,955 0% 351,233 0%
Lapse risk 35,100,250 48% 35,825,410 49%
Expense risk 19,416,939 27% 18,422,470 25%
Audit risk 1,407,394 2% 1,193,587 2%
Life insurance catastrophe risk 7,531,674 10% 7,143,657 10%
Diversification -11,338,549 -15% -12,520,918 -17%
Total (regulatory assessment of life underwriting risks) 73,264,168 100% 72,873,959 100%

in EUR

31 Dec 2024 31 Dec 2023 adjusted
Zavarovalnica Triglav Amount Share of
risk in total
assessment		 Amount Share of
risk in total
assessment
Mortality risk 7,430,980 12% 8,744,157 14%
Longevity risk 9,399,119 15% 10,316,914 16%
Disability and morbidity risk 124,714 0% 187,489 0%
Lapse risk 27,498,228 44% 29,470,421 46%
Expense risk 16,680,122 27% 16,352,885 26%
Audit risk 1,332,052 2% 1,148,870 2%
Life insurance catastrophe risk 5,206,799 8% 5,163,581 8%
Diversification -5,297,065 -8% -7,473,438 -12%
Total (regulatory assessment of life underwriting risks) 62,374,950 100% 63,910,878 100%

Business report Sensitivity of net insurance contract liabilities of the Triglav Group to parameter changes

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Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

in EUR
Exposure Sensitivity
31 Dec 2024 Present value of
future cash flows		 Contractual service
margin as at		 Impact on
the present value of
future cash flows		 Impact on
the contractual
service margin		 Impact on insurance
contract assets and
liabilities		 Remainder of
the contractual
service margin		 Impact on earnings
before tax		 Impact on other
comprehensive
income
Traditional life insurance 510,361,252 162,930,885
Lapse rate +50% 15,633,026 -10,763,950 4,869,076 152,166,936 2,425,300 -7,294,376
Costs +10% 9,718,242 -7,195,552 2,522,690 155,735,334 -3,172,433 649,743
Unit-linked insurance -67,488,052 109,235,427
Lapse rate +50% 28,430,607 -26,554,573 1,876,035 82,680,855 -1,876,035 0
Costs +10% 9,166,950 -7,255,007 1,911,943 101,980,420 -1,911,943 0
Exposure
31 Dec 2023 Present value of
future cash flows		 Contractual service
margin as at		 Impact on
the present value of
future cash flows		 Impact on
the contractual
service margin		 Impact on insurance
contract assets and
liabilities		 Remainder of
the contractual
service margin		 Impact on earnings
before tax		 Impact on other
comprehensive
income
Traditional life insurance 583,217,877 119,014,267
Lapse rate +50% 15,902,643 -13,002,380 2,900,263 106,011,887 983,548 -3,883,810
Costs +10% 9,506,879 -7,145,218 2,361,661 111,869,048 -3,303,443 941,782
Unit-linked insurance -66,957,688 102,584,175
Lapse rate +50% 23,781,715 -22,391,143 1,390,572 80,193,032 -1,390,572 0
Costs +10% 8,596,779 -7,076,350 1,520,429 95,507,825 -1,520,429 0

Business report Sensitivity of net insurance contract liabilities of the Company to parameter changes

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Appendix

Exposure Sensitivity
31 Dec 2024 Present value of
future cash flows		 Contractual service
margin as at		 Impact on
the present value of
future cash flows		 Impact on
the contractual
service margin		 Impact on insurance
contract assets and
liabilities		 Remainder of
the contractual
service margin		 Impact on earnings
before tax		 Impact on other
comprehensive
income
Traditional life insurance 420,659,888 149,568,770
Lapse rate +50% 12,810,718 -9,026,813 3,783,905 140,541,957 2,754,049 -6,537,954
Costs +10% 7,941,498 -6,337,207 1,604,290 143,231,563 -2,193,338 589,048
Unit-linked insurance -92,697,047 108,237,510
in EUR
31 Dec 2023
adjusted		 Exposure Sensitivity
Present value of
future cash flows		 Contractual service
margin as at		 Impact on
the present value of
future cash flows		 Impact on
the contractual
service margin		 Impact on insurance
contract assets and
liabilities		 Remainder of
the contractual
service margin		 Impact on earnings
before tax		 Impact on other
comprehensive
income
Traditional life insurance 500,638,518 108,226,635
Lapse rate +50% 13,265,851 -12,017,879 1,247,973 96,208,757 1,352,770 -2,600,743
Costs +10% 8,014,595 -6,696,861 1,317,734 101,529,774 -2,309,570 991,835
Unit-linked insurance -88,441,456 101,415,664
Lapse rate +50% 23,100,184 -21,887,660 1,212,524 79,528,004 -1,212,524 0
Costs +10% 8,017,179 -6,703,865 1,313,314 94,711,799 -1,313,314 0

Lapse rate +50% 27,890,994 -26,256,720 1,634,273 81,980,789 -1,634,273 0 Costs +10% 8,326,458 -6,953,667 1,372,791 101,283,843 -1,372,791 0

Traditional life and pension insurance policies which include saving at a guaranteed interest rate cause potential asset-liability mismatch risk. The guarantee fund backing life insurance includes the majority of the Company's liabilities with a guaranteed fixed interest rate. Liabilities under these policies are calculated using a risk-free interest rate curve, taking into account illiquidity premium.

Similar risks due to the special return guarantee also arise from voluntary supplementary pension insurance during the period of saving. These risks arise largely from market risks.

Life insurance concentration risk

The concentration of life underwriting risks is assessed as low. The life insurance portfolio is well dispersed by all criteria, including geographically, due to dispersed retail sale of policies. Any major concentration risk in the portfolio is reduced by transferring a portion of the risks to reinsurers based on the reinsurance programme.

The Group is therefore not exposed to the risk of a large number of claims arising from a single event, with the exception of a catastrophic event that could affect a larger area and result in a higher number of fatalities. An example of such an event would be a widespread pandemic, which could lead to increased mortality among the insured population.

Management of life underwriting risks in 2024

The life underwriting risk profile did not change significantly in the reporting year. The biggest risk continues to be lapse risk, which decreased minimally in 2024. This is followed by expense risk, which did not change significantly in the reporting year.

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

in EUR

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

2.8.2.3 Market risks

The Group invests written premium (in the framework of the insurance business) and its own funds. The value of investment portfolios depends to a large extent on the situation and trends in financial markets. Financial investments are the largest financial asset group and therefore an important part of the Group's operations. In this way, insurance and other obligations and capital requirements are covered while ensuring an appropriate return. The investment process is conducted in line with the prudent person principle and the principles of asset-liability management (ALM), considering both returns and investment risk.

In investing, the Company is exposed to market risks due to changes in the prices of equity securities and real property, changes in interest rates (risk-free interest rates and credit spreads) and changes in exchange rates. An important part of these risks are also risks arising from the excessive concentration of assets from direct investment in financial instruments or indirect through investments in collective investment undertakings. The primary method of measuring and monitoring these risks at Group level is based on the Solvency II standard formula, complemented by internal measures primarily using the value-at-risk (VaR) method.

Market risks are managed according to the established methods and processes with clearly defined powers and responsibilities. The market risk management system enables quality analyses and reporting on market risks, as well as developing and implementing measures aimed at preventing the reduction of available own assets due to changes in financial markets.

Market risks are reduced by appropriately diversifying the investment portfolio and matching assets and liabilities with respect to material characteristics. Derivatives are also used to balance the investment portfolio, but to a lesser extent.

The level of expected losses, which is still acceptable in relation to the Group's strategic objectives and capital strength, is defined in its market risk appetite. On this basis, the limit system was set up that also specifies maximum acceptable exposure to individual types of market risk and the target investment portfolio structure.

In addition to financial instruments, the Company includes real property for own use and investment property in its market risk monitoring. The following risks are considered in the context of market risks:

Interest rate risk is highly dependent on the time matching of cash flows of assets and liabilities. At the Group level, it is managed within the framework of the asset and liability management (ALM) process and is limited by the maximum permissible deviation in the gap of the duration of assets and liabilities.The Group is exposed to interest rate risk on the liabilities side, mostly through insurance contract liabilities for life insurance, and to a lesser extent, in insurance contract liabilities for nonlife insurance, especially those created for the payment of annuity claims for motor vehicle and accident insurance.

  • Equity risk is mainly related to changes in exposure and equity prices and volatile movements in share prices. Assets and liabilities sensitive to changes in the level or stock market volatility are exposed to this risk. Assets (investments) mainly include shares and collective investment undertakings focused on equity instruments. Liabilities sensitive to this risk arise primaly from unit-linked life insurance and supplemental voluntary pension insurance, where such risks are primarily assumed by the policyholders. In this segment, the focus is therefore on achieving the greatest possible matching of assets and liabilities. The purpose of equity investments is to achieve high long-term returns and ensure adequate diversification of the investment portfolio. The Group manages equity risk in its portfolio by setting exposure limits as well as through geographical and sectoral diversification of equity investments. In addition, due to different levels of development of capital markets and local statutory limitations, the investment policy is adapted to individual markets.
  • Property risk arises primarily from changes in the value of investment property, own-use real property, other tangible fixed assets and right of use buildings. Collective investment undertakings focused on the real property market are also exposed to property risk.
  • Spread risk stems from the sensitivity of the values of assets, liabilities and financial instruments to changes in the level or volatility of credit spreads over the risk-free interest rate term structure. The Group is exposed to spread risk primarily in debt securities, including those that are part of the investment portfolios of collective investment undertakings. The increase in credit spreads is associated with the fall in the price of debt securities and vice versa. Insurance liabilities are practically not sensitive to changes in the level or volatility of credit spreads, which means that this risk cannot be eliminated by asset-liability matching. Spread risk is actively managed through investment policies that aim to invest in high-quality securities and are subject to the limit as defined in the Risk Appetite Statement.
  • Currency risk is the risk of a decrease in the value of assets denominated in foreign currencies or an increase in the value of liabilities denominated in foreign currencies due to changes in exchange rates. Therefore, currency risk results from the mismatched currency position of assets and liabilities. It is managed by matching assets and liabilities and, to a lesser extent, by using derivatives.
  • Market concentration risk arises from a possible unfavourable change in the financial situation due to high dependence or unfavourable correlations between the movement of the values of individual exposures or their groups. Factors or types of concentration are different. They include, for example, the risk of asset concentration (in case of excessive exposure to one investment or one issuer) and the risk of sector or geographical concentration (with excessive exposure to one concentrated geographical area and/or sector/industry, where the risk arises from geopolitical, macroeconomic, social, weather or other disturbances).

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Level of market risks by market risk subtype
in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 Index 31 Dec 2024 31 Dec 2023
Zavarovalnica Triglav		 31 Dec 2023
Triglav, Zdravstvena
zavarovalnica		 Index
Interest rate risk 11,293,523 5,418,512 208 0 5,928,971 618,808 0
Equity risk 43,833,549 33,663,939 130 161,463,378 144,576,665 0 112
Property risk 54,156,886 52,535,620 103 35,673,464 35,579,269 60,718 100
Spread risk 61,650,100 59,393,574 104 35,390,015 36,332,136 593,743 96
Currency risk 30,881,947 33,437,667 92 11,309,379 10,318,760 0 110
Market concentration risk 46,271,902 37,153,148 125 63,876,636 55,988,732 48,032 114
Diversification -70,957,930 -56,260,907 126 -60,846,049 -54,471,070 -439,542 111
Total market risks* 177,129,977 165,341,553 107 246,866,822 234,253,462 888,759 105

The market risks in the table are measured based on the Solvency II standard formula methodology. The risk is measured as the decrease in the value of assets and liabilities sensitive to changes in the value of market factors (share prices, credit spreads, interest rates, etc.) in a regulatory stress scenario. The stress scenario is based on value-at-risk with a 99.5% confidence interval and a holding period of one year. The level of risk depends essentially on the amount of the exposure and a calibrated weight that illustrates the market sensitivity of the relevant asset or liability.

The Company's interest rate risk assessment as at 31 December 2024 is zero, due to the application of relevant legal provisions governing the consideration of scenarios when assessing the absorption capacity of insurance technical provisions in relation to interest rate risk. Had the absorption capacity of insurance technical provisions not been considered, the estimated interest rate risk would have amounted to EUR 8.1 million, compared to EUR 5.9 million in the previous year.

The Group's market risk as at 31 December 2024 increased by 7% year-on-year, while that of the Company rose by 5%. The changes are explained in greater detail in the sections below.

Exposure to interest rate risk of the Group and the Company

The Group's interest rate risk assessment increased in 2024 compared to the previous year.

The euro risk-free interest rate curve gradually returned to a more normal trajectory in 2024.The short end of the curve decreased significantly, while the middle and long ends remained largely unchanged compared to the end of the previous year. An analysis of the movement in euro interest rate throughout 2024 indicates that the year was relatively stable.

The Company adapted the interest rate sensitivity of its investment portfolios to market conditions and the portfolio of insurance liabilities. The duration of the Group's interest rate-sensitive investment portfolio decreased by 0.15 year overall, while the duration of the investment portfolios backing long-term insurance liabilities increased (around 0.2 year), while the duration of the investment portfolios backing shorter maturities and excess, i.e. own funds, shortened. This allowed the Group to take advantage of the relatively higher interest rates at the short end of the curve and, by investing at the longer end of the curve, to further close the interest rate gap with liabilities that it had experienced in the previous year.

The volume of interest-sensitive assets grew significantly more than liabilities compared to the previous year. This is the main reason why interest rate risk, as measured by the Solvency II capital requirement, increased compared to the previous year but remains very low.

The sensitivity analysis of the Group's investment portfolio related to (unit-linked assets are excluded) change in interest rate and its impact on comprehensive income or profit or loss showed that a sudden parallel rise in interest rates of 100 basis points would have a negative impact in the amount of EUR 69.2 million, which would be reflected in other comprehensive income, and an additional EUR 0.9 million in profit or loss. A parallel fall in interest rates of 100 basis points would have a positive impact of EUR 79.1 million in comprehensive income and EUR 1 million in profit or loss. The impact of interest rate movements is adjusted for the specificities of the treatment of financial assets for financial reporting purposes. Interest rate movements also have an impact on the Group's and the Company's financial statements on the liability side, which significantly reduces the abovementioned potential impacts.

The Group manages interest rate risk based on market values. For this purpose, the duration gap of interest-sensitive items is monitored for the life, non-life and supplemental voluntary insurance segments, excluding the unit-linked life insurance segment.

The matching of the duration of assets and liabilities is measured through the duration gap of assets and liabilities, which measures the sensitivity of interest-bearing assets and liabilities to changes in interest rates. The gap reflects the matching of interest rate resetting between the asset and liability sides. The interest rate matching estimate as of 31 December 2024 showed a slight increase compared to the previous year. The duration gap of assets and liabilities at Group level is negative and stands at –1.3 years (31 December 2023: –1.5 years). The most important impact originates from the Company, where the duration gap of assets and liabilities was –1.7 years (31 December 2023: –2.2 years). Interest rate risk is actively managed by adjusting the portfolio at all times.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

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Exposure to equity risk of the Group and the Company

Equity risk arises from exposure to equity investments and undertakings for collective investment in shares. Compared to the end of the previous year, this risk increased by 30% at Group level. In parallel with the introduction of IFRS 9, the Group disposed of a significant part of its listed equity investments, which were geographically concentrated in the domestic market, and is gradually replacing this exposure with investments in alternative investment funds. The main drivers of the increase in equity risk compared to the previous year are additional inflows and the revaluation of equity-focused alternative investment funds. Equity risk is also increased by the exchange of the participating interest in Nama with the participating interest in Katera.

Sectoral diversification of equity investments is shown in the table. For the purpose of transparency and consistency with the balance sheet figures, investments that are in principle not subject to equity risk (bond funds, money market funds) were also added to this category under collective investment undertakings.

Exposure and sectoral diversification of assets for which the Group and the Company assume equity risk

The sensitivity analysis of the change in prices of equity investments, whose risks are borne by the Group, and an analysis of this impact on the Group's profit or loss showed that a 10% increase in market prices of equities in the portfolio would increase the portfolio's value by EUR 5.1 million. An equal fall in the market prices of shares would result in a decrease in profit or loss of the same amount.

Exposure to property risk of the Group and the Company

Exposure to investment property and real property for own use did not change significantly in the reporting period. Also, the exposure to collective investment undertakings focused on the real property market did not change significantly. The level of risk, therefore, remained almost unchanged.

The Group's and the Company's land, buildings and investment property are presented in the financial statements under the cost model, and therefore movements in real property prices do not directly affect the amount of profit or loss and other comprehensive income. In the event of significant declines in real property prices, the need to impair these assets is assessed.

in EUR

Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 adjusted
Equity investments 11,313,938 9,854,613 7,620,768 7,436,024
Communications 256,442 33,366 0 0
Cyclical sectors 2,225,652 2,207,134 2,104,236 2,080,901
Non-cyclical sectors 1,441,950 961,770 610,305 610,305
Finance 3,301,753 2,839,773 1,279,358 1,041,532
Industry 732,994 1,016,750 675,000 1,010,000
Technology 393,991 93,250 0 0
Public goods 2,899,910 2,641,391 2,899,910 2,641,391
Other 61,246 61,181 51,959 51,895
Public collective investment undertakings 42,540,730 46,177,391 0 0
Equity funds 4,213,574 3,767,867 0 0
Bond funds 32,963,420 39,142,674 0 0
Money market funds 5,023,018 3,150,687 0 0
Asset allocation funds 340,718 116,162 0 0
Private collective investment undertakings 146,828,222 112,648,193 145,317,756 111,327,945
Equity funds 27,425,049 24,595,393 27,329,735 24,534,960
Bond funds 55,062,048 28,830,644 55,062,048 28,830,644
Infrastructure funds 38,044,275 34,878,186 38,044,275 34,878,186
Real estate funds 18,736,756 17,641,074 17,321,604 16,381,259
Other 7,560,093 6,702,896 7,560,093 6,702,896
Total assets exposed to equity risk 200,682,890 168,680,196 152,938,524 118,763,969

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

Exposure to spread risk of the Group and the Company

The Group's exposure to spread risk is an important source of investment return generated by the Group's management of the debt portion of the investment portfolio.

Credit spreads in 2024, similar to 2023, exhibited relatively low volatility on average, while they continued to decrease. The Group proactively manages spread risk in line with its investment policies.

Exposure to debt securities increased by EUR 230 million in 2024. Exposure to debt securities from nonsovereign issuers, which are the primary contributors to spread risk, decreased significantly at Group level over the reporting period but remained similar in absolute terms to the previous year. The duration of the credit-sensitive investment portfolio remained virtually unchanged compared to the previous year, while the credit quality of this portfolio slightly declined. Together, these changes resulted in a slight increase in the Group's spread risk, rising by 3.8% during the reporting period.

Exposure of assets to spread risk

In its investment portfolio, the Group is exposed to investments with outstanding credit quality. A total of 72.0% (2023: 65.2%) of investments in debt securities have at least an "A" credit rating. In the corporate debt securities segment, financial institutions' securities represent 56.0% of investments (2023: 57.0%).

Investments in debt securities measured at amortised cost reduce the impact of the change in credit spreads on profit or loss and other comprehensive income. Investments in debt securities measured at amortised cost represented 7.4% of total debt securities at 31 December 2024 (31 December 2023: 8.4%).

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 adjusted
Government debt securities 1,444,489,932 1,199,254,862 993,395,097 789,730,938
AAA 561,792,935 406,759,440 439,502,130 283,633,558
AA 265,479,668 237,082,341 214,479,568 196,065,664
A 365,531,031 216,807,741 248,741,490 185,963,018
BBB 101,880,339 201,076,501 84,846,071 114,052,004
Below BBB 149,638,064 133,216,091 5,825,839 7,136,483
Not rated 167,896 4,312,748 0 2,880,211
Corporate debt securities 648,143,237 660,790,040 456,903,038 522,568,564
AAA 10,493,938 11,430,045 10,493,938 10,327,440
AA 58,320,606 70,457,675 46,585,765 59,620,761
A 244,349,874 269,934,941 160,520,352 208,589,566
BBB 299,459,451 265,202,398 211,684,150 209,956,553
Below BBB 14,868,055 18,922,792 12,659,136 17,198,480
Not rated 20,651,313 24,842,189 14,959,698 16,875,764
Total debt securities and other fixed-income securities 2,092,633,169 1,860,044,901 1,450,298,136 1,312,299,502

* The table includes debt securities measured at fair value. Financial contract assets and unit-linked insurance assets are excluded.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

Exposure to currency rate risk of the Group and the Company

The Group's currency risk arises predominantly from subsidiaries not operating in the euro area. These companies conduct most of their transactions in the local currency, thus being exposed to currency risk relating to the euro and other currencies to a lesser extent.

In addition to the local currencies of the countries in which the Group operates, other currencies are also present, to a lesser extent, in the investment portfolio of the Group. These are mainly due to the currency matching of assets and liabilities, primarily in the part of the investment portfolio backing reinsurance liabilities.

The Group is also exposed to foreign currencies through its investments in collective investment undertakings. The Group also used derivatives to manage currency risk in 2024.

The currency risk at Group level fell by 7.6%.

Changes in exchange rates are directly reflected in the Company's financial statements. Due to the low exposure to foreign currencies, the impact is low. The local currencies of the countries in which the Group operates, with the exception of the Serbian dinar and North Macedonian denar, are pegged to the euro and therefore their exchange rate volatility is very low.

Currency exposure of the Group's assets and liabilities

31 Dec 2024 EUR USD BAM RSD MKD Other TOTAL The elimination
of intercompany
transactions
within the Group		 Carrying amount
Financial investments 2,825,501,724 16,394,750 57,825,771 60,021,600 36,735,653 46,036,097 3,042,515,595 1,923,725 3,040,591,870
Insurance contract assets 14,723,422 67,220 0 1,697 0 24,689 14,817,028 -5,024,079 19,841,107
Reinsurance contract assets 370,910,485 25,270,997 7,941,533 18,906,774 0 3,647,519 426,677,308 137,067,053 289,610,255
Other receivables 43,388,734 43,848 566,091 1,048,344 1,301,486 4,698 46,353,201 1,815,001 44,538,200
Cash and cash equivalents 47,143,967 1,860,109 10,060,009 7,755,072 1,187,062 944,860 68,951,079 0 68,951,079
Total assets 3,301,668,332 43,636,924 76,393,404 87,733,487 39,224,201 50,657,863 3,599,314,211 135,781,700 3,463,532,511
Subordinated liabilities 152,130,399 0 0 0 0 0 152,130,399 0 152,130,399
Insurance contract liabilities 2,391,561,592 42,830,320 11,906,540 60,699,042 21,494,888 75,314,117 2,603,806,499 130,308,533 2,473,497,966
Reinsurance contract liabilities 2,274,859 148,348 460,625 790,294 189,526 25,227 3,888,879 1,734,441 2,154,438
Lease liabilities 12,783,553 0 1,239,058 0 427,367 0 14,449,978 3,793,288 10,656,690
Other financial liabilities 976,001 0 152,367 201,801 9,403 0 1,339,572 1,022,056 317,516
Total liabilities 2,559,726,404 42,978,668 13,758,590 61,691,137 22,121,184 75,339,344 2,775,615,327 136,858,318 2,638,757,009
Net currency exposure 741,941,928 658,256 62,634,814 26,042,350 17,103,017 -24,681,481 823,698,884 -1,076,618 822,622,266

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

The Group's parent company also manages its currency risk through the use of currency derivatives, with a notional amount of EUR 13 million as at 31 December 2024 (none as at 31 December 2023). These instruments were used to reduce exposure to the US dollar and the British pound, taking into account the look-through approach, which is not reflected in the table above.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

31 Dec 2023 EUR USD BAM RSD MKD Other TOTAL The elimination
of intercompany
transactions
within the Group		 Carrying amount
Financial investments 2,436,641,042 18,861,282 61,611,076 51,675,806 30,007,480 45,513,864 2,644,310,550 1,469,780 2,642,840,770
Insurance contract assets 12,736,081 0 9,559 0 78,709 0 12,824,349 730,471 12,093,878
Reinsurance contract assets 493,515,491 8,377,534 8,152,322 12,232,984 -14,461 2,078,713 524,342,583 196,609,428 327,733,155
Other receivables 33,982,583 1,539 595,378 2,045,181 1,640,089 63,632 38,328,402 684,399 37,644,003
Cash and cash equivalents 64,634,828 3,580,013 8,976,924 4,618,303 1,641,005 969,590 84,420,663 0 84,420,667
Total assets 3,041,510,025 30,820,368 79,345,259 70,572,274 33,352,822 48,625,799 3,304,226,547 199,494,074 3,104,732,473
Subordinated liabilities 49,994,402 0 0 0 0 0 49,994,402 0 49,994,402
Insurance contract liabilities 2,372,321,566 8,453,492 15,500,405 49,143,146 21,190,148 59,881,610 2,526,490,367 195,842,762 2,330,647,605
Reinsurance contract liabilities 3,194,200 0 2,821,870 1,790,628 440,923 0 8,247,621 1,787,021 6,460,600
Lease liabilities 14,385,944 0 1,359,068 0 643,676 0 16,388,688 4,723,355 11,665,333
Other financial liabilities 1,401,466 0 269,318 553,670 8,742 0 2,233,196 1,569,754 663,442
Total liabilities 2,441,297,578 8,453,492 19,950,661 51,487,444 22,283,489 59,881,610 2,603,354,274 203,922,892 2,399,431,382
Net currency exposure 600,212,447 22,366,876 59,394,598 19,084,830 11,069,333 -11,255,811 700,872,273 -4,428,818 705,301,091

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities

* Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

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Business report Currency exposure of the Company's assets and liabilities

31 Dec 2024 EUR USD BAM RSD MKD Other Total
Financial investments 2,244,426,466 3,337,005 0 214 0 13,606,921 2,261,370,605
Insurance contract assets 14,432,147 0 0 0 0 0 14,432,147
Reinsurance contract assets 249,461,236 0 0 0 0 0 249,461,236
Other receivables 27,753,903 0 0 0 0 0 27,753,903
Cash and cash equivalents 18,072,124 45,198 0 22,748 2,976 22,274 18,165,321
Total assets 2,554,145,876 3,382,203 0 22,962 2,976 13,629,195 2,571,183,212
Subordinated liabilities 152,130,399 0 0 0 0 0 152,130,399
Insurance contract liabilities 1,982,613,699 0 0 0 0 0 1,982,613,699
Reinsurance contract liabilities 429,625 0 0 0 0 0 429,625
Lease liabilities 4,302,797 0 0 0 0 0 4,302,797
Other financial liabilities 69,430 0 0 0 0 0 69,430
Total liabilities 2,139,545,950 0 0 0 0 0 2,139,545,950
Net currency exposure 414,599,926 3,382,203 0 22,962 2,976 13,629,195 431,637,262

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

31 Dec 2023 adjusted EUR USD BAM RSD MKD Other Total
Financial investments 1,955,647,331 0 0 149 0 0 1,955,647,480
Insurance contract assets 10,959,726 0 0 0 0 0 10,959,726
Reinsurance contract assets 306,936,690 0 0 0 0 0 306,936,690
Other receivables 20,448,498 0 0 0 0 0 20,448,498
Cash and cash equivalents 30,849,158 1,022,842 0 23,799 2,961 7,583 31,906,343
Total assets 2,324,841,403 1,022,842 0 23,948 2,961 7,583 2,325,898,737
Subordinated liabilities 49,994,402 0 0 0 0 0 49,994,402
Insurance contract liabilities 1,919,950,640 0 0 0 0 0 1,919,950,640
Reinsurance contract liabilities 0 0 0 0 0 0 0
Lease liabilities 5,033,767 0 0 0 0 0 5,033,767
Other financial liabilities 22,768 0 0 0 0 0 22,768
Total liabilities 1,975,001,577 0 0 0 0 0 1,975,001,577
Net currency exposure 349,839,826 1,022,842 0 23,948 2,961 7,583 350,897,160

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

213

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Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

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Market concentration risk

Market concentration risk arises from overexposure of financial investments to a single issuer, sector or country. The Group continuously monitors concentration of exposure to issuers and groups of related issuers as well as geographical and sector concentration. The sector structure of equity securities is presented in the section on equity risk and that of debt securities in the section on spread risk. Below, the geographical structure of sovereign debt securities is added.

The Group's largest aggregate exposure to a single issuer as at 31 December 2024 was to Germany amounting to EUR 254.1 million (31 December 2023: EUR 134.4 million in exposure to the same issuer), while the Company's largest aggregate exposure to a single issuer as at 31 December 2024 was EUR 199.9 million also to Germany (31 December 2023: EUR 73.8 million also to the Republic of Germany).

Geographical concentration of investments in government debt securities

in EUR
Triglav Group
31 Dec 2024 31 Dec 2023
Germany 330,322,346 252,626,510
Transnational organisations 215,853,676 139,831,347
Slovenia 109,246,554 104,591,751
Croatia 90,093,396 88,586,259
France 94,444,040 61,132,747
Other countries 604,529,924 552,486,248
TOTAL 1,444,489,936 1,199,254,862
in EUR
Zavarovalnica Triglav
31 Dec 2023 31 Dec 2023
adjusted
Germany 257,977,758 159,149,707
Transnational organisations 176,522,901 113,216,351
Slovenia 84,900,976 81,093,326
France 73,439,732 55,029,604
Spain 69,604,798 58,687,104
Other countries 330,948,932 322,554,847
TOTAL 993,395,097 789,730,938

Management of market risks in 2024

Despite major changes in the financial markets, the Group always kept market risks at predetermined levels, which required active management of these risks. The scope of market risks decreased overall and across all market risk subtypes as a result of active risk management and redirecting investments to safer asset classes. The structure of market risks did not change significantly compared to the previous year.

2.8.2.4 Credit risk

The Group is exposed to credit risks in their operations. These risks measure the potential loss of assets due to the inability of the counterparty to meet its contractual obligations. They arise from fluctuations in the credit position of individual counterparties and the concentration of risks of these parties. Within credit risk, the Group monitors the following risks by type of business partner (counterparty):

  • Risks from expected payments under insurance contracts: This exposure is managed by regularly monitoring the payment dynamics by various homogeneous groups and insurance segments.
  • Risks from expected payments under reinsurance contracts: The Group is exposed to credit risk when underwriting risks are transferred to reinsurers. Its exposure to reinsurers is measured by reinsurance contract assets and expected payments under reinsurance and coinsurance contracts. These risks are managed by carefully selecting reinsurance partners with an appropriate credit rating, ensuring that the transferred risks are adequately dispersed among the partners. The comprehensive system and well-defined rules for credit risk management include the process of assigning credit ratings to partners, which also takes into account own criteria in addition to public information or credit ratings. In addition to assessing a credit rating, a system of uniform naming and keeping of basic data on reinsurance partners is also important for measuring, managing and monitoring credit risks.
  • Risks from cooperation with banks: Credit risks arising from investments in deposits, cash and cash equivalents are managed by performing an expert analysis of the bank's credit quality and through a sufficient degree of portfolio diversification. This is achieved through a resilient and comprehensive limit system, which limits the exposures of individual companies to banks and the Group to banking groups.

Exposure to credit risk by source of origin

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
adjusted
Assets exposed to risks from expected payments under
insurance contracts		 274,561,846 296,123,546 115,942,009 165,481,711
Assets exposed to risks from expected payments under
reinsurance contracts		 318,459,843 365,577,477 240,531,160 328,219,374
Assets exposed to risks from cooperation with banks 84,041,699 108,370,575 24,111,756 35,591,346
Total assets exposed to credit risk 677,063,388 770,071,598 380,584,925 529,292,431

* Exposure from cooperation with banks does not include financial contract assets and unit-linked insurance assets.

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Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

Concentration risk in the context of credit risk occurs upon overexposure to an individual counterparty, group of related parties or parties connected by common risk factors such as credit ratings. The concentration risk of individual counterparties is managed with a single database of reinsurers, banks and bank groups.

Exposure of the Group and the Company to credit risk from expected payments under insurance contracts

The Group is exposed to credit risk through the expected payments of premium and subrogations, which affect the amount of the calculated insurance contract assets and liabilities. The policyholders' payment discipline is closely monitored through a number of indicators. The movements of written premium and payments are monitored by maturity, in different time periods and by insurance class. With regard to expected payments of subrogations, recovery performance and the proportion of subrogations paid in relation to claims settled are also monitored.

Exposures of the Group and the Company to credit risk from expected payments under insurance contracts

Triglav Group in EUR
Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
adjusted
Expected premium payments 220,898,839 241,074,293 115,942,009 110,898,544
Expected subrogation payments 53,663,007 55,049,253 52,462,931 54,583,167
TOTAL 274,561,846 296,123,546 168,404,940 165,481,711

Age structure of expected premium payments

in EUR
Triglav Group Zavarovalnica Triglav
Gross expected payments 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
adjusted
Not due 171,256,967 190,188,030 91,471,665 84,916,042
Overdue up to 30 days 11,861,067 11,175,004 5,439,164 6,543,127
Overdue from 31 to 60 days 7,667,704 7,456,574 2,440,337 2,758,583
Overdue from 61 to 90 days 5,960,010 5,971,365 1,354,278 1,592,584
Overdue over 90 days 24,153,091 26,283,320 15,236,565 15,088,208
TOTAL EXPECTED PAYMENTS 220,898,839 241,074,293 115,942,009 110,898,544

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Age structure of expected subrogation payments

in EUR
Triglav Group Zavarovalnica Triglav
Gross expected payments 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
adjusted
Not due 912,195 199,246 236,054 193,883
Overdue up to 30 days 746,783 365,952 724,260 365,324
Overdue from 31 to 60 days 1,017,516 698,555 991,173 685,616
Overdue from 61 to 90 days 1,172,239 1,151,802 1,154,820 1,151,134
Overdue over 90 days 49,814,274 52,633,698 49,356,624 52,187,210
TOTAL EXPECTED PAYMENTS 53,663,007 55,049,253 52,462,931 54,583,167

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

Exposure of the Group and the Company to credit risk from expected payments under reinsurance contracts

Exposure to reinsurance partners by credit rating

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
adjusted
AAA 0.0% 0.0% 0.0% 0.0%
AA to BBB 85.7% 85.0% 87.0% 87.0%
Below BBB 5.6% 3.5% 4.1% 4.5%
Not rated 8.7% 11.6% 8.1% 8.5%
Average credit rating A BBB A BBB

The Group is most exposed to reinsurers with an "A" credit rating. The proportion of partners with an "AA" credit rating is also high. The proportion of non-rated reinsurance partners at Group level is 8.7%. The bulk stems from insurance claims of insurance companies in strategic markets, which are covered by local non-rated reinsurers. The proportion of non-rated reinsurers in the Company is slightly lower, i.e. 8.1%. The improvement in the exposure distribution leads to an increase in the average rating of the Group's and the Company's reinsurance portfolio, rising from "BBB" to "A".

The geographical concentration of reinsurers at Group level is the highest in Luxembourg. It changed slightly compared to 2023, though the top five exposures by country remained unchanged. Due to its exposure to the subsidiary Pozavarovalnica Triglav Re, Zavarovalnica Triglav is geographically most exposed in Slovenia.

Concentration of five largest exposures to reinsurers by country

Triglav Group 31 Dec 2024 31 Dec 2023
Luxembourg 14.0% Germany 14.4%
Germany 13.2% Luxembourg 11.0%
United Kingdom 9.1% United Kingdom 9.5%
Kazahstan 8.7% Switzerland 7.0%
Switzerland 5.7% Kazakhstan 6.9%
Zavarovalnica Triglav 31 Dec 2024 31 Dec 2023 adjusted
Slovenia 51.8% Slovenia 62.9%
Kazahstan 9.7% Kazakhstan 9.5%
United Kingdom 7.8% United Kingdom 6.8%
Cyprus 4.1% Cyprus 3.8%
Russia 3.8% Russia 3.6%

Exposure of the Group and the Company to credit risk from cooperation with banks

With regard to deposits, cash and cash equivalents, the Company is most exposed to Slovenian banks, which mainly have an "A" and "BBB" credit ratings or are without a credit rating. In addition, the Group is exposed to banks in the countries where its subsidiaries operate, which are usually without a credit rating. In 2024, the rating of the Slovenian OTP Bank was changed from "BBB" to "A", which slightly altered the rating structure of the Company's and the Group's exposures.

Management of credit risks in 2024

The Group actively managed these risks by regularly monitoring all credit risk exposures. The largest in 2024 was the decrease in exposures to reinsurers due to the activation of reinsurance protection following unfavourable claims development in 2023. The exposures to all counterparties in 2024 were in line with expectations. At Group level, the credit quality of counterparties is systematically and comprehensively monitored on a regular basis.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

2.8.2.5 Liquidity risk

Liquidity risk is the risk of loss when the company is unable to meet its obligations arising from the timing mismatch of inflows and outflows, or when it is able to meet them only at higher costs. The risk of settling matured and contingent liabilities and market liquidity risk are monitored in the context of the liquidity risk.

  • Risk of settling matured and contingent liabilities is the risk of being unable to dispose of a liquidity position that allows settling liabilities (including incurred unexpected liabilities) upon maturity.
  • Market liquidity risk is the risk of loss due to the inability to sell an asset without major impact on the market price due to inadequate market depth or market disruptions.

Expected cash flows, i.e. inflows and outflows, are kept and managed proactively. Most cash flows of liabilities arise from insurance operations. The assets intended to cover these liabilities are adjusted by covering them in accordance with the investment policy in normal circumstances (the ALM process), while aiming to generate surplus assets to ensure the repayment of liabilities even when liquidity needs are higher. Thus, when necessary, the Group adjusts the liquidity of its portfolio in order to meet all expected and unexpected cash outflows and overdue liabilities at any given moment.

To manage liquidity risk, a process was set up based on the liquidity coverage ratio (LCR), which is used to provide for adequate liquidity reserves on an ongoing basis. The LCR is determined for both expected and predetermined liquidity stress scenarios. These are determined based on various stress scenarios adjusted to the Company's liquidity risk, which includes adverse insurance and financial events. Furthermore, the sources of liquidity are regularly adjusted, as the available funds must always exceed the needs.

When measuring liquidity, liquidity sources include primarily insurance premium and cash flows of investments intended to cover liabilities. The most important liquidity needs include the payment of claims, expenses and the payout of planned dividends. In the event of an emergency, an action plan is in place, including the sale of liquid excess assets over liabilities and additional security mechanisms such as credit and repo lines. The Group does not carry out securities lending techniques. Stress scenarios and measures are reviewed annually and adjusted to exposures and the market situation. With the described system, liquidity risk is effectively managed, while optimising excess liquidity by investing in alternative sources with higher returns on the market.

Liquidity at Group level is assessed based on the liquidity of the Company and the subsidiaries. The liquidity of the Group companies is planned on an annual basis by estimating the volume and scope of business in the coming year. In the framework of own risk and solvency assessment, it is planned for at least three years; the planning includes future potential liquidity needs and effectively provides for available liquidity sources.

Exposure of the Group and the Company to liquidity risk

Assets and liabilities of the Triglav Group by contractual maturity

31 Dec 2024 Not defined < 1 year 1–5 years 5–10 years > 10 years Total The elimination of intercompany transactions within the Group Carrying amount Financial investments 873,275,990 787,659,230 829,946,785 262,814,308 288,819,280 3,042,515,593 1,923,723 3,040,591,870 Insurance contract assets 0 -1,442,717 15,731,766 2,653,593 -2,125,614 14,817,028 -5,024,079 19,841,107 Reinsurance contract assets 3,018,824 271,342,619 128,518,984 16,566,294 7,230,591 426,677,312 137,067,057 289,610,255 Other receivables 2,186,230 43,661,228 449,905 55,837 0 46,353,200 1,815,000 44,538,200 Cash and cash equivalents 68,951,079 0 0 0 0 68,951,079 0 68,951,079 Total assets 947,432,123 1,101,220,360 974,647,440 282,090,032 293,924,257 3,599,314,212 135,781,701 3,463,532,511 Subordinated liabilities 0 0 0 0 152,130,399 152,130,399 0 152,130,399 Insurance contract liabilities 726,733,768 775,210,163 622,073,424 198,794,347 280,994,797 2,603,806,499 130,308,533 2,473,497,966 Reinsurance contract liabilities 0 2,710,794 226,222 876,625 75,237 3,888,878 1,734,440 2,154,438 Lease liabilities 1,918,777 4,671,399 7,057,832 696,341 105,628 14,449,977 3,793,287 10,656,690 Other financial liabilities 944,823 394,749 0 0 0 1,339,572 1,022,056 317,516 Total liabilities 729,597,368 782,987,105 629,357,478 200,367,313 433,306,061 2,775,615,325 136,858,316 2,638,757,009

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

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2. Notes to the financial statements

Appendix

31 Dec 2023 Not defined < 1 year 1–5 years 5–10 years > 10 years Total The elimination
of intercompany
transactions within
the Group		 Carrying amount
Financial investments 707,646,416 474,666,207 979,921,868 221,907,815 260,168,243 2,644,310,549 1,469,779 2,642,840,770
Insurance contract assets 0 -366,183 8,673,874 3,718,761 797,897 12,824,349 730,471 12,093,878
Reinsurance contract assets 0 346,320,625 165,669,165 9,854,304 2,498,489 524,342,583 196,609,428 327,733,155
Other receivables 1,014,334 35,570,530 1,742,665 874 0 38,328,403 684,400 37,644,003
Cash and cash equivalents 45,354,022 39,066,642 0 0 0 84,420,664 0 84,420,667
Total assets 754,014,772 895,257,821 1,156,007,572 235,481,754 263,464,629 3,304,226,548 199,494,075 3,104,732,473
Subordinated liabilities 0 0 0 0 49,994,402 49,994,402 0 49,994,402
Insurance contract liabilities 591,491,919 811,998,011 640,444,697 180,534,084 302,021,655 2,526,490,366 195,842,761 2,330,647,605
Reinsurance contract liabilities 0 8,287,425 -34,711 -4,319 -773 8,247,622 1,787,022 6,460,600
Lease liabilities 1,087,204 5,023,302 9,638,996 639,189 0 16,388,691 4,723,358 11,665,333
Other financial liabilities 469,459 821,902 941,835 0 0 2,233,196 1,569,754 663,442
Total liabilities 593,048,582 826,130,640 650,990,817 181,168,954 352,015,284 2,603,354,277 203,922,895 2,399,431,382

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

The total value of financial assets exceeds the total value of financial liabilities in 2023 as well. The surplus is presented in the maturity buckets of up to 10 years and with undefined maturity. In the buckets of over 10 years, the value of assets was below the value of liabilities. The vast majority of the Group's assets is invested in highly liquid investments, which also provides the coverage of liabilities in maturity buckets before the bucket into which they are classified in the table shown. Insurance contract liabilities take into account the maturity based on forecast cash flows. Therefore, neither deficit in individual maturity buckets nor payments of liabilities before the maturity date present a liquidity risk.

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Business report Assets and liabilities of Zavarovalnica Triglav by contractual maturity

Accounting report

nting report
-- -------------- -- --
Statement of management's responsibilities
Independent auditor's report
1. Financial statements

Appendix

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* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

** Financial contract assets and liabilities are excluded.

*** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

*** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides a comparison with the financial statements.

Management of liquidity risk in 2024

in EUR

In the reporting year, the Company regularly monitored and managed liquidity risk to maintain an optimal liquidity level, taking into account the assessed liquidity level. This approach ensured that liquidity risk remained low at all times. In fact, investment policies aim to ensure a high volume of liquid securities.

In 2024, liquidity risk was also carefully assessed when placing funds in alternative investments. The volume of such investments is subordinated to achieving adequate portfolio liquidity even in the event of a deteriorating situation in the financial markets.

in EUR
31 Dec 2023 adjusted Not defined < 1 year 1–5 years 5–10 years > 10 years TOTAL
Financial investments 631,587,976 258,849,064 675,340,388 168,693,312 221,176,739 1,955,647,480
Insurance contract assets 0 -2,026,512 8,481,341 3,708,863 796,034 10,959,726
Reinsurance contract assets 0 180,561,924 118,503,433 5,621,324 2,250,009 306,936,690
Other receivables 0 20,125,130 323,368 0 0 20,448,498
Cash and cash equivalents 0 31,906,343 0 0 0 31,906,343
Total assets 631,587,976 489,415,949 802,648,531 178,023,500 224,222,782 2,325,898,737
Subordinated liabilities 0 0 0 0 49,994,402 49,994,402
Insurance contract liabilities 565,058,237 520,779,727 425,969,934 130,380,717 277,762,025 1,919,950,640
Reinsurance contract liabilities 0 0 0 0 0 0
Lease liabilities 0 1,743,026 2,801,656 489,085 0 5,033,767
Other financial liabilities 0 22,768 0 0 0 22,768
Total liabilities 565,058,237 522,545,521 428,771,590 130,869,802 327,756,427 1,975,001,577

31 Dec 2024 Not defined < 1 year 1–5 years 5–10 years > 10 years TOTAL Financial investments 798,533,222 498,104,672 526,956,027 169,516,385 268,260,299 2,261,370,605 Insurance contract assets 0 -1,732,079 15,642,067 2,647,852 -2,125,693 14,432,147 Reinsurance contract assets 0 148,813,526 83,043,057 10,620,247 6,984,405 249,461,236 Other receivables 0 27,415,351 338,552 0 0 27,753,903 Cash and cash equivalents 18,165,321 0 0 0 0 18,165,321 Total assets 816,698,543 672,601,470 625,979,703 182,784,483 273,119,011 2,571,183,212

Subordinated liabilities 0 0 0 0 152,130,399 152,130,399 Insurance contract liabilities 686,253,259 504,772,395 393,522,318 137,542,537 260,523,190 1,982,613,699 Reinsurance contract liabilities 0 272,654 16,735 65,804 74,432 429,625 Lease liabilities 0 1,354,335 2,478,514 469,948 0 4,302,797 Other financial liabilities 0 69,430 0 0 0 69,430 Total liabilities 686,253,259 506,468,814 396,017,567 138,078,289 412,728,021 2,139,545,950

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

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Appendix

2.8.2.6 Operational risks

Operational risks are the risks of loss arising from inadequate or failed internal processes, personnel or systems, or from external events and their impact.

As part of the risk appetite, which is the main guideline for operational risk management, high standards for ensuring compliance with the law and zero tolerance for internal criminal acts and fraud, including corruption, were set. The Group and the Company aim to ensure an appropriate level of information security (confidentiality, integrity and availability) for any information that is their business asset, and in doing so follow good practices in information security, taking into account the levels of information security risks defined as acceptable for each type of information.

The Group's operational risks are ever-present, therefore it is of key importance to identify and manage the most material in a timely manner, limiting them cost-effectively according to the defined tolerance. The aim of operational risk management is to prevent damage, quickly and effectively address the consequences of realised operational loss events, as well as mitigate and prevent operational losses in a professional, diligent and ethical manner. Here, the greatest emphasis is placed on key business processes and the groups of operational risks. Recently, cyber, regulatory and human resource risks have come to the fore. Operational risks are assessed based on all available information, such as estimates of potential risks by business process group, realised operational loss events, key indicators of these risks and other relevant information from employees and key functions. The GRC/IRM software (Governance, Risk, Compliance/Integrated Risk Management) is used to collect and manage data as well as report on operational risks more comprehensively. This tool also supports compliance and internal audit processes for an even more coordinated operation of key functions in risk management processes and a more responsive overview. The Operational Risk Committee plays a key role in monitoring operational risks. It addresses any identified material risks, whether potential or realised, and takes additional action as needed. When assessing exposure and managing operational risks, internal controls for their management are inventoried by each business process. The priorities of the internal control system are as follows:

  • efficiency, reliability and continuity of business processes;
  • ensuring compliance of operations with the internal acts and legal regulations;
  • accuracy and reliability of financial and accounting reporting and
  • information and property protection.

In accordance with the principles of proportionality and materiality, the Company transfers the operational risk management system to subsidiaries, all of which regularly report on realised operational loss events and other material operational risks.

Ensuring business continuity and functioning of systems material for smooth business process implementation

As part of operational risk management, the business continuity management system was set up to ensure continuity of key business processes. It comprises all key components relevant to business continuity, particularly securing key staff, work locations and resources, which includes the operation of information and communication technology with key applications. Business continuity plans for critical business processes and IT disaster recovery plans are regularly revised, upgraded and checked.

Among others, the business continuity management system also defines measures to be taken in the case of extraordinary events that cause or could cause interruptions or disruptions in business processes. The Company has set up:

  • a crisis management team, which is activated in the case of extraordinary events that cause a major interruption or disruption in business processes;
  • a disaster recovery team for extraordinary events that cause major disruption to ICT services;
  • recovery teams for the Company's head office and regional units, which are activated in the event the accessibility or operation in an individual commercial building or regional unit is interrupted.

As part of operational risks, events related to business interruptions and disruptions are also monitored.

Management of operational risks in 2024

Through proactive management of operational risks, any shortcomings, changes and trends in the internal and external environments that may affect their increase are promptly identified. More attention was paid to the perceived growing risks and, when necessary, appropriate measures were taken to prevent them from materialising.

2.8.2.7 Non-financial risks

Non-financial risks to the Triglav Group's operations include material strategic risks, reputational risk, Group risk and sustainability risks. Non-financial risks usually originate from the external environment and are very closely linked to other risks, especially operational. Usually they occur due to several realised factors both inside and outside of the Group.

  • Strategic risks are the risks of loss due to adverse business decisions, improper implementation of adopted strategic decisions and insufficient responsiveness to changes in the business environment. They also include part of legal and regulatory risks arising from key changes in the Group's business environment.
  • Reputational risk is the risk of loss of existing or future business or goodwill due to a negative opinion of the Group held by its clients, business partners, employees, shareholders, investors, supervisory and other government bodies, and others concerned or the general public.

Effective reputational risk management allows the Company to retain the leading position in the market, maintain or increase market capitalisation, resolve potential crises with greater ease and remain resilient in an uncertain situation. It ensures the trust, loyalty and satisfaction of stakeholders. To manage reputational risk, an assessment method is used which takes into account additional aspects that may negatively affect the Group's reputation. They are divided into internal and external. With a functioning internal control system, it is ensured that the Group's operations are legal, professional and ethical. The Group ensures the appropriate quality of services and products, achieves financial goals, properly manages relationships with its key stakeholders and implements sustainability commitments or sustainable aspects of business. Furthermore, the Group respects the set environmental goals and aims to respect unrestricted, healthy competition in the market. Maintaining a low reputational risk assessment is key, as the Group set high goals in this area.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

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The Group risks arise from the business model of the Company, which is the parent company or a group of related parties. They include risks that might threaten the achievement of strategic objectives due to an inefficient governance system and insufficient understanding of the business environment of the Group members. The risk profile is also affected by the review and treatment of large transactions between related companies and the complexity of concentration risk management. All these risks can materialise in the form of major or minor deviations from the business and financial plans due to losses incurred or lost business opportunities.

Sustainability risks (including ESG risks) are a set of risks of the Group arising from environmental, social and governance factors, and may have a negative impact on the financial position or solvency of the Group.

Environmental risks are divided into physical risks and transition risks. Physical risks are the risks of a financial loss due to extreme weather events or other environmental impacts related to climate change. Transition risk is associated with risks arising from changes in business or the environment, due to measures to promote the transition to a low-carbon economy in order to reduce the human impact on climate change.

Social risks mainly include risks arising from the way the Company and the Group companies operate in relation to the requirements of the wider social environment, In particular ensuring diversity and equal opportunities for various stakeholders, safety, health and satisfaction of employees, and good relations with clients, suppliers and outsourcers.

Governance risks are associated with an inappropriately or inadequately established governance system, especially in the field of environmental and social aspects. They include the legality of business operations, corporate governance standards, including the risk management system and internal control system, remuneration of the company's management, used business practices and the investor relations policy.

Non-financial risks are risks that, due to their nature, cannot be reduced, addressed or mitigated with dedicated capital. They are also not included in the regulatory risk assessment.

Management of non-financial risks in 2024

In the reporting year, the Group's sustainability risk management system continued to be upgraded, mainly by improving data quality and defining methodologies, indicators and reporting on environmental risks. It is assessed that environmental risks, including climate change risks, continue to be the most material among sustainability risks for the Group. They were particularly carefully examined in the framework of own risk and solvency assessment. In order to assess climate risks, including both transition and physical risks, a qualitative and quantitative assessment of the effects of climate change on the business operations of the Company and the Group was performed. The climate risk assessment was further enhanced with an assessment of nature-related risks, specifically biodiversity risks.

2.8.2.8 Capital management

Capital management is the process by which the Group determines and maintains an adequate amount and quality of capital.

Central to effective capital management is a well-integrated risk management system that ensures, among other things, consistent assessment of the profitability of transactions relative to assumed risks, while striving to maintain target capital adequacy.

As part of the Group's regular capital management to ensure optimal capital composition and cost efficiency, the Company issued a new subordinated bond, which is taken into account in the calculation of capital adequacy.

The Group's target capital adequacy is defined as ranging between 200 and 250 percent. This means that the Group has an adequate amount of capital to carry out its core business and cover potential losses. The Group uses capital surplus as protection against losses due to unforeseen adverse events and volatile capital requirements.

The management of capital and capital risk is presented in greater detail in Section 9.2 of the Business Report, which is part of the Group's Annual Report.

2.9 Segment reporting

Zavarovalnica Triglav's management monitors the Group's and the Company's operations by business segment.

Business segments in the context of the Group's and the Company's operations differ from one another by nature of transaction, type of service and business risks.

In 2024, following the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d., there was a change in the business segments for which the Company's management separately monitors business results and makes decisions on the allocation of resources.

In 2024, these business segments were non-life insurance, life insurance, health insurance and asset management.

All components of the Group's and the Company's operations are included in one of the business segments.

The results of a specific business segment are assessed based on the profit or loss achieved by that segment; in addition, the management monitors the amount of assets and liabilities of specific segments. All income and expenses items are included in the determination of profit or loss, and all assets and liabilities items of the Group and the Company are included in the monitoring of the amount of assets and liabilities of specific segments.

Income and expenses are allocated directly to each segment, but if this is not possible, allocation keys are adopted for this purpose. Income and expenses from insurance operations are recorded in the accounting records by specific insurance class, which are then aggregated into insurance groups. Other income and expenses and costs are recorded in the accounting records by specific insurance group. They are classified in specific insurance groups partly directly and partly through defined allocation keys.

Assets and liabilities are allocated directly to each segment and are already kept separately in the accounting records by insurance group.

Accounting report

Statement of management's responsibilities Independent auditor's report

2.9 Segment reporting 2.10 The impact of geopolitical risks, the changed economic situation and climate change on the Group's and the Company's financial statements

Appendix

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2.9.1 Triglav Group business segments

31 Dec 2024
Statement of financial position NON-LIFE LIFE HEALTH ASSET MANAGEMENT TOTAL
(before eliminations between segments)
ASSETS 2,085,654,371 1,610,216,865 36,701,781 906,913,832 4,639,486,849
Property, plant and equipment 93,893,269 10,079,509 659,534 1,234,873 105,867,185
Investment property 69,219,906 1,191,467 0 0 70,411,373
Right-of-use assets 9,431,262 228,834 250,552 141,095 10,051,743
Intangible assets and goodwill 25,000,036 6,588,301 69,430 21,704,145 53,361,912
Deferred tax assets 8,973,220 5,215,407 0 50,878 14,239,505
Investments in subsidiaries 55,059,388 0 0 561,985 55,621,373
Investments in associates and joint ventures 1,362,496,683 1,547,810,030 20,862,673 109,422,484 3,040,591,870
Financial investments 1,218,575,713 622,696,930 20,862,673 49,425,069 1,911,560,385
– at fair value through other comprehensive income 30,339,550 175,099,131 0 17,129,756 222,568,437
– at amortised cost 113,581,420 750,013,969 0 42,867,659 906,463,048
– at fair value through profit or loss 0 0 0 755,007,158 755,007,158
Financial contract assets 0 0 0 245,995,862 245,995,862
– investments at amortised cost 0 0 0 493,515,077 493,515,077
– investments at fair value through profit or loss 0 0 0 405,599 405,599
– receivables from financial contracts 0 0 0 15,090,620 15,090,620
– cash from financial contracts 5,608,761 13,951,277 281,069 0 19,841,107
Insurance contract assets 289,242,833 355,332 12,090 0 289,610,255
Reinsurance contract assets 49,390 0 0 0 49,390
Non-current assets held for sale 260,573 0 0 0 260,573
Current corporate income tax assets 126,838,501 2,087,390 11,407,414 5,361,209 145,694,514
Other receivables 30,872,473 22,012,722 3,023,185 13,042,699 68,951,079
Cash and cash equivalents 8,708,076 696,596 135,834 387,306 9,927,812
EQUITY AND LIABILITIES 2,085,654,371 1,610,216,865 36,701,781 906,913,832 4,639,486,849
Equity 748,274,867 157,809,495 9,761,544 73,196,300 989,042,206
Controlling interests 745,193,786 158,358,484 9,761,544 71,572,847 984,886,661
– share capital 51,340,540 22,360,852 0 0 73,701,392
– share premium 36,405,639 13,635,792 15,192 265,956 50,322,579
– reserves from profit 364,680 0 0 0 364,680
– treasury share reserves -364,680 0 0 0 -364,680
– treasury shares 503,304,466 46,529,492 34 11,113,911 560,947,903
– accumulated other comprehensive income -16,719,874 -15,343,937 -18,185 828,696 -31,253,300
– retained earnings from previous years 140,175,350 67,822,943 -465,692 51,661,166 259,193,767
– net profit or loss for the year 32,648,925 24,334,943 10,230,195 7,834,969 75,049,032
– translation differences -1,961,260 -981,601 0 -131,851 -3,074,712
Non-controlling interests 3,081,081 -548,989 0 1,623,453 4,155,545
Subordinated liabilities 152,130,399 0 0 0 152,130,399
Deferred tax liabilities 692,384 1,242,512 1,835 275,674 2,212,405
Financial contract liabilities 0 0 0 755,007,158 755,007,158
Insurance contract liabilities 1,040,917,066 1,418,850,442 13,730,458 0 2,473,497,966
Reinsurance contract liabilities 1,838,849 8,336 307,253 0 2,154,438
Provisions 19,722,249 2,710,816 35,151 3,527,915 25,996,131
Lease liabilities 10,038,318 228,027 254,822 135,523 10,656,690
Other financial liabilities 297,020 20,379 0 117 317,516
Current corporate income tax liabilities 4,512,730 205,029 86,045 829,441 5,633,245
Other liabilities 107,230,489 29,141,829 12,524,673 73,941,704 222,838,695

Accounting report

Statement of management's responsibilities Independent auditor's report

  1. Financial statements

  2. Notes to the financial statements

  3. 2.1 Profile of Zavarovalnica Triglav and

  4. Triglav Group 2.2 Bases for the preparation of
  5. financial statements
  6. 2.3 Bases for consolidation
  7. 2.4 Foreign currency translation
  8. 2.5 Significant accounting policies
  9. 2.6 Significant accounting judgments,
  10. estimates and assumptions
  11. 2.7 The merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d.
  12. 2.8 Risk management
  13. 2.9 Segment reporting
  14. 2.10 The impact of geopolitical risks, the changed economic situation and climate change on the Group's and the Company's financial statements
  15. 2.11 Tax policy
  16. 2.12 The impact of new or amended standards on the preparation of financial statements
    1. Notes to the specific significant items in
  18. the financial statements 4. Other information

Appendix

31 Dec 2023
TOTAL
Statement of financial position NON-LIFE LIFE HEALTH ASSET MANAGEMENT (before eliminations between segments)
ASSETS 1,836,512,187 1,492,386,826 78,664,647 815,061,910 4,222,625,570
Property, plant and equipment 95,171,886 9,708,710 533,945 1,414,268 106,828,809
Investment property 66,639,912 1,313,861 0 0 67,953,773
Right-of-use assets 10,496,063 177,355 299,599 140,432 11,113,449
Intangible assets and goodwill 27,956,815 6,507,973 163,028 20,028,490 54,656,306
Deferred tax assets 12,859,999 2,823,227 6,278,596 5,726 21,967,548
Investments in subsidiaries 37,218,841 0 0 489,221 37,708,062
Investments in associates and joint ventures 1,046,023,574 1,428,125,972 65,546,191 103,145,033 2,642,840,770
Financial investments 920,752,335 651,116,719 65,546,191 35,551,687 1,672,966,932
– at fair value through other comprehensive income 33,075,932 175,921,558 0 20,562,237 229,559,727
– at amortised cost 92,195,307 601,087,695 0 47,031,109 740,314,111
– at fair value through profit or loss 0 0 0 674,115,145 674,115,145
Financial contract assets 0 0 0 283,215,425 283,215,425
– investments at amortised cost 0 0 0 366,826,746 366,826,746
– investments at fair value through profit or loss 0 0 0 123,066 123,066
– receivables from financial contracts 0 0 0 23,949,908 23,949,908
– cash from financial contracts 1,858,700 10,234,160 1,018 0 12,093,878
Insurance contract assets 327,123,674 387,756 221,725 0 327,733,155
Reinsurance contract assets 432,748 0 1,141,578 1,555,383 3,129,709
Non-current assets held for sale 8,491,524 0 0 0 8,491,524
Current corporate income tax assets 148,600,030 2,551,228 2,179,210 7,910,406 161,240,874
Other receivables 46,349,730 29,822,552 2,231,347 6,017,038 84,420,667
Cash and cash equivalents 7,288,691 734,032 68,410 240,768 8,331,901
EQUITY AND LIABILITIES 1,836,512,187 1,492,386,826 78,664,647 815,061,910 4,222,625,570
Equity 682,884,863 134,080,298 -2,844,957 76,979,779 891,099,983
Equity 682,884,863 134,080,298 -2,844,957 76,979,779 891,099,983
Controlling interests 680,175,218 134,635,417 -2,844,957 75,450,052 887,415,730
– share capital 51,340,540,00 22,360,852,00 0 0 73,701,392
– share premium 36,420,831 13,635,792 0 265,956 50,322,579
– reserves from profit 364,680 0 0 0 364,680
– treasury share reserves -364,680 0 0 0 -364,680
– treasury shares 452,450,505 46,529,492 1,853,961 4,269,024 505,102,982
– accumulated other comprehensive income -28,346,492 -8,420,843 -472,831 -175,817 -37,415,983
– retained earnings from previous years 178,775,250 47,179,410 21,878,523 58,258,765 306,091,948
– net profit or loss for the year -8,409,299 14,357,563 -26,104,946 12,964,144 -7,192,538
– translation differences -2,056,117 -1,006,849 336 -132,020 -3,194,650
Non-controlling interests 2,709,645 -555,119 0 1,529,727 3,684,253
Subordinated liabilities 49,994,402 0 0 0 49,994,402
Deferred tax liabilities 1,061,324 428,118 0 376,368 1,865,810
Financial contract liabilities 0 0 0 674,115,145 674,115,145
Insurance contract liabilities 977,467,204 1,315,940,347 37,240,054 0 2,330,647,605
Reinsurance contract liabilities 6,368,274 3,246 89,080 0 6,460,600
Provisions 20,955,698 2,525,981 1,699,744 5,166,062 30,347,485
Lease liabilities 11,053,625 169,451 301,180 141,077 11,665,333
Other financial liabilities 640,258 22,283 0 901 663,442
Current corporate income tax liabilities 0 113,793 9,319 448,443 571,555
Other liabilities 86,086,539 39,103,309 42,170,227 57,834,135 225,194,210
Offset balance 4,538,330,535 4,099,028,699
Intersegment receivables and liabilities -101,156,314 -123,596,871
Balance sheet total before intersegment elimination 4,639,486,849 4,222,625,570
31 Dec 2024 31 Dec 2023
in EUR

In EUR

in EUR

Business report Accounting report

Statement of management's responsibilities Independent auditor's report

2.3 Bases for consolidation

Appendix

2024
Statement of profit or loss and other comprehensive income NON-LIFE LIFE HEALTH ASSET MANAGEMENT TOTAL DISCONTINUED
OPERATIONS		 TOTAL
continuing operations
Insurance service result 130,821,464 32,447,583 1,938,740 0 165,207,787 5,539,544 159,668,243
– insurance income 1,156,299,596 98,399,942 43,252,835 0 1,297,952,373 52,453 1,297,899,920
– insurance service expenses -885,519,420 -66,224,365 -40,069,884 0 -991,813,669 5,487,091 -997,300,760
– net reinsurance service result -139,958,712 272,006 -1,244,211 0 -140,930,917 0 -140,930,917
Investment result 33,807,735 121,112,814 1,452,206 3,373,821 159,746,576 0 159,746,576
– interest income calculated using the effective interest method 25,666,852 18,997,723 1,215,235 1,406,886 47,286,696 0 47,286,696
– dividend income 2,244,992 275,497 1,311 78,068 2,599,868 0 2,599,868
– net gains and losses on financial investments 2,342,643 99,542,504 -300,753 1,875,578 103,459,972 0 103,459,972
– net impairment and reversal of impairment of financial investments 1,808,219 1,057,740 477,849 -9,538 3,334,270 0 3,334,270
– other effects of investing activities 1,745,029 1,239,350 58,564 22,827 3,065,770 0 3,065,770
Financial result from insurance contracts -7,747,515 -110,589,731 -204,287 0 -118,541,533 -113,374 -118,428,159
– financial result from insurance contracts -14,283,689 -110,595,193 -225,567 0 -125,104,449 -113,374 -124,991,075
– financial result from reinsurance contracts 6,536,174 5,462 21,280 0 6,562,916 0 6,562,916
Income from asset management 0 0 0 49,364,063 49,364,063 0 49,364,063
Non-attributable operating expenses -54,380,124 -9,189,821 -2,157,319 -35,460,567 -101,187,831 -236,860 -100,950,971
Net other operating income and expenses -2,377,445 -3,494,757 -1,950,182 -375,854 -8,198,238 -59,651 -8,138,587
Net other financial income and expenses -7,155,755 -64,324 -74,373 -9,996 -7,304,448 -4,030 -7,300,418
Net impairment and reversal of impairment of non-financial assets -66,398 0 0 0 -66,398 0 -66,398
Gains and losses on investments in associates 6,871,440 0 0 72,763 6,944,203 0 6,944,203
Net other income and expenses 1,057,896 115,914 11,336,083 568,127 13,078,020 11,022,075 2,055,945
Earnings before tax 100,831,298 30,337,678 10,340,868 17,532,357 159,042,201 16,147,704 142,894,497
Tax expense -18,818,174 -5,979,003 -110,640 -2,716,271 -27,624,088 0 -27,624,088
TOTAL NET EARNINGS FOR THE PERIOD 82,013,124 24,358,675 10,230,228 14,816,086 131,418,113 16,147,704 115,270,409
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX 11,764,257 -7,090,990 632,528 1,004,788 6,310,583 -2,979 6,313,562

in EUR

Business report

Accounting report

Appendix

2023
Statement of profit or loss and other comprehensive income NON-LIFE LIFE HEALTH ASSET MANAGEMENT TOTAL DISCONTINUED
OPERATIONS		 TOTAL
continuing operations
Insurance service result 58,186,739 27,210,040 -25,859,802 0 59,536,977 -22,680,225 82,217,202
– insurance income 1,042,646,914 85,367,869 223,171,882 0 1,351,186,665 193,275,962 1,157,910,703
– insurance service expenses -1,014,162,211 -59,777,022 -249,317,025 0 -1,323,256,258 -215,956,187 -1,107,300,071
– net reinsurance service result 29,702,036 1,619,193 285,341 0 31,606,570 0 31,606,570
Investment result 15,967,165 66,648,694 -2,814,914 4,030,242 83,831,187 -2,725,611 86,556,798
– interest income calculated using the effective interest method 16,436,735 16,834,901 734,847 1,091,814 35,098,297 176,237 34,922,060
– dividend income 2,022,129 590,546 0 92,389 2,705,064 0 2,705,064
– net gains and losses on financial investments -853,754 48,241,347 -3,749,045 2,767,519 46,406,067 -3,031,559 49,437,626
– net impairment and reversal of impairment of financial investments 1,318,266 767,278 198,524 7,690 2,291,758 128,858 2,162,900
– other effects of investing activities -2,956,211 214,622 760 70,830 -2,669,999 853 -2,670,852
Financial result from insurance contracts -4,840,616 -64,706,573 -130,746 0 -69,677,935 -80,813 -69,597,122
– financial result from insurance contracts -4,884,509 -64,713,983 -144,962 0 -69,743,454 -80,813 -69,662,641
– financial result from reinsurance contracts 43,893 7,410 14,216 0 65,519 0 65,519
Income from asset management 0 0 0 39,685,486 39,685,486 0 39,685,486
Non-attributable operating expenses -52,960,155 -7,489,065 -1,950,332 -30,768,917 -93,168,469 -2,043,895 -91,124,574
Net other operating income and expenses 1,216,028 -3,046,463 4,240 3,326,742 1,500,547 449,474 1,051,073
Net other financial income and expenses -3,666,106 -22,412 12,270 -15,262 -3,691,510 -11,357 -3,680,153
Net impairment and reversal of impairment of non-financial assets -2,501,482 -14,034 0 0 -2,515,516 0 -2,515,516
Gains and losses on investments in associates 2,194,361 0 0 48,574 2,242,935 0 2,242,935
Net other income and expenses 952,179 363,918 -673,921 2,674,559 3,316,735 -683,441 4,000,176
Earnings before tax 14,548,113 18,944,105 -31,413,205 18,981,424 21,060,437 -27,775,868 48,836,305
Tax expense -3,763,817 -4,562,328 5,308,259 -1,777,356 -4,795,242 5,503,377 -10,298,619
TOTAL NET EARNINGS FOR THE PERIOD 10,784,296 14,381,777 -26,104,946 17,204,068 16,265,195 -22,272,491 38,537,686
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX 18,861,509 10,317,358 4,505,995 986,670 34,671,532 1,545,820 33,125,712

Accounting report

Statement of management's responsibilities Independent auditor's report

estimates and assumptions

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Appendix

2.9.2 Zavarovalnica Triglav business segments

In accordance with the requirements of the Decision on annual reports and quarterly financial statements of insurance undertakings (Official Gazette of the Republic of Slovenia, No. 101/2024), the Company's operations are described by specific business segments.

31 Dec 2024
Statement of financial position NON-LIFE LIFE HEALTH ASSET MANAGEMENT TOTAL
(before eliminations between segments)
ASSETS 1,540,466,794 1,430,159,485 23,873,487 290,972,541 3,285,472,306
Property, plant and equipment 58,487,630 7,387,839 185,045 0 66,060,514
Investment property 44,791,506 179,639 0 0 44,971,145
Right-of-use assets 4,106,670 0 12,379 0 4,119,049
Intangible assets and goodwill 21,852,624 6,532,989 65,709 0 28,451,322
Deferred tax assets 8,302,797 4,494,027 0 0 12,796,824
Investments in subsidiaries 178,854,111 17,770,346 0 0 196,624,457
Investments in associates and joint ventures 55,059,388 0 0 0 55,059,388
Financial investments 880,763,577 1,365,794,724 14,812,304 0 2,261,370,605
– at fair value through other comprehensive income 773,542,961 513,378,853 14,812,304 0 1,301,734,118
– at amortised cost 5,255,656 138,620,164 0 0 143,875,820
– at fair value through profit or loss 101,964,961 713,795,707 0 0 815,760,668
Financial contract assets 0 0 0 290,843,831 290,843,831
– investments at amortised cost 0 0 0 77,040,080 77,040,080
– investments at fair value through profit or loss 0 0 0 207,542,830 207,542,830
– receivables from financial contracts 0 0 0 314,486 314,486
– cash from financial contracts 0 0 0 5,946,434 5,946,434
Insurance contract assets 449,920 13,920,027 62,200 0 14,432,147
Reinsurance contract assets 249,449,146 0 12,090 0 249,461,236
Other receivables 27,182,242 4,472,077 7,613,813 128,710 39,396,842
Cash and cash equivalents 7,550,471 9,504,903 1,109,947 0 18,165,321
Other assets 3,616,711 102,914 0 0 3,719,625
EQUITY AND LIABILITIES 1,540,466,793 1,430,159,485 23,873,487 290,972,541 3,285,472,306
Equity 602,733,082 125,698,285 13,082,662 128,710 741,642,738
Controlling interests 51,340,540 22,360,852 0 0 73,701,392
– share capital 40,344,977 13,067,907 0 0 53,412,884
– share premium 489,102,713 45,513,891 0 0 534,616,604
– reserves from profit -12,677,163 -16,780,786 -60,846 0 -29,518,795
– treasury share reserves 19,261,769 40,936,987 0 0 60,198,756
– treasury shares 15,360,245 20,599,434 13,143,508 128,710 49,231,897
Non-controlling interests 152,130,399 0 0 0 152,130,399
Subordinated liabilities 0 0 0 290,843,831 290,843,831
Deferred tax liabilities 688,991,220 1,285,942,391 7,680,088 0 1,982,613,699
Financial contract liabilities 421,289 8,336 0 0 429,625
Insurance contract liabilities 12,413,767 2,464,627 0 0 14,878,394
Reinsurance contract liabilities 4,289,298 0 13,499 0 4,302,797
Provisions 69,430 0 0 0 69,430
Lease liabilities 2,360,480 0 0 0 2,360,480
Other financial liabilities 77,057,829 16,045,846 3,097,238 0 96,200,913

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

TOTAL
Statement of financial position NON-LIFE LIFE HEALTH ASSET MANAGEMENT (before eliminations between segments)
ASSETS 1,403,338,566 1,331,082,262 76,410,969 264,181,801 3,075,013,598
Property, plant and equipment 60,764,600 7,844,878 243,629 0 68,853,107
Investment property 43,152,887 274,294 0 0 43,427,181
Right-of-use assets 4,356,487 0 456,896 0 4,813,383
Intangible assets and goodwill 24,441,317 6,437,832 160,130 0 31,039,279
Deferred tax assets 10,071,867 2,816,255 6,278,596 0 19,166,719
Investments in subsidiaries 175,354,112 17,770,346 2,500,000 0 195,624,458
Investments in associates and joint ventures 37,218,841 0 0 0 37,218,841
Financial investments 628,013,042 1,265,041,138 62,593,300 0 1,955,647,481
– at fair value through other comprehensive income 541,324,405 557,262,083 62,593,300 0 1,161,179,788
– at amortised cost 4,673,512 138,169,794 0 0 142,843,306
– at fair value through profit or loss 82,015,125 569,609,261 0 0 651,624,386
Financial contract assets 0 0 0 259,624,041 259,624,041
– investments at amortised cost 0 0 0 86,215,285 86,215,285
– investments at fair value through profit or loss 0 0 0 169,625,986 169,625,986
– receivables from financial contracts 0 0 0 83,130 83,130
– cash from financial contracts 0 0 0 3,699,640 3,699,640
Insurance contract assets 763,841 10,194,985 900 0 10,959,726
Reinsurance contract assets 305,976,870 0 959,820 0 306,936,690
Non-current assets held for sale 0 0 1,141,578 0 1,141,578
Current corporate income tax assets 9,302,529 0 0 0 9,302,529
Other receivables 88,711,311 1,488,778 1,785,563 4,557,760 96,543,412
Denar in denarni ustrezniki 12,536,521 19,145,012 224,810 0 31,906,343
Druga sredstva 2,674,341 68,743 65,747 0 2,808,831
EQUITY AND LIABILITIES 1,403,338,566 1,331,082,262 76,410,970 264,181,801 3,075,013,598
Equity 591,214,222 111,490,183 -24,735,908 4,557,760 682,526,257
Equity 591,214,222 111,490,183 -24,735,908 4,557,760 682,526,257
Controlling interests 51,340,540 22,360,852 0 0 73,701,392
– share capital 40,344,977 13,067,907 0 0 53,412,884
– share premium 440,102,713 45,513,891 0 0 485,616,604
– reserves from profit -19,849,347 -9,828,743 -475,183 0 -30,153,273
– treasury share reserves 79,128,333 25,602,561 0 0 104,730,894
– treasury shares 147,006 14,773,715 -24,260,726 4,557,760 -4,782,244
Non-controlling interests 49,994,402 0 0 0 49,994,402
Subordinated liabilities 0 0 0 259,624,041 259,624,041
Deferred tax liabilities 688,581,224 1,197,093,666 34,275,749 0 1,919,950,640
Financial contract liabilities 11,993,826 2,329,680 1,699,744 0 16,023,250
Insurance contract liabilities 4,573,011 0 460,757 0 5,033,767
Reinsurance contract liabilities 22,763 5 0 0 22,768
Provisions 56,959,118 20,168,727 64,710,629 0 141,838,474

All items disclosed in the statement of financial position by business segment are not offset. The amount of the balance sheet total after offsetting is shown below.

in EUR
31 Dec 2024 31 Dec 2023
adjusted
Balance sheet total before intersegment elimination 3,285,472,306 3,075,013,598
Intersegment receivables and liabilities -11,642,939 -76,094,914
Offset balance 3,273,829,367 2,998,918,684

Search in report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

in EUR

Business report Accounting report

Statement of management's responsibilities Independent auditor's report

2.3 Bases for consolidation

Appendix

2024
Statement of profit or loss and other comprehensive income NON-LIFE LIFE HEALTH ASSET MANAGEMENT TOTAL DISCONTINUED
OPERATIONS		 TOTAL
continuing operations
Insurance service result 100,146,976 29,795,216 4,752,277 0 134,694,469 5,539,543 129,154,926
– insurance income 811,017,891 76,553,208 23,532,720 0 911,103,819 52,453 911,051,366
– insurance service expenses -580,824,306 -46,652,230 -18,275,715 0 -645,752,251 5,487,091 -651,239,341
– net reinsurance service result -130,046,609 -105,762 -504,728 0 -130,657,099 0 -130,657,099
Investment result 19,014,220 114,508,388 1,338,705 0 134,861,313 0 134,861,313
– interest income calculated using the effective interest method 12,882,506 15,099,991 1,088,269 0 29,070,766 0 29,070,766
– dividend income 1,745,076 274,619 0 0 2,019,695 0 2,019,695
– net gains and losses on financial investments 2,447,986 96,592,920 -282,756 0 98,758,150 0 98,758,150
– net impairment and reversal of impairment of financial investments 920,622 1,358,747 475,629 0 2,754,998 0 2,754,998
– other effects of investing activities 1,018,030 1,182,111 57,563 0 2,257,704 0 2,257,704
Financial result from insurance contracts -3,099,164 -106,866,151 -163,497 0 -110,128,812 -113,374 -110,015,438
– financial result from insurance contracts -8,812,263 -106,867,372 -182,592 0 -115,862,227 -113,374 -115,748,853
– financial result from reinsurance contracts 5,713,099 1,221 19,095 0 5,733,415 0 5,733,415
Income from asset management 0 0 0 3,158,050 3,158,050 0 3,158,050
Non-attributable operating expenses -31,086,710 -8,064,502 -1,934,117 -2,881,923 -43,967,252 -236,860 -43,730,392
Net other operating income and expenses -10,431,995 -3,113,303 -2,228,627 -147,417 -15,921,342 -59,651 -15,861,691
Net other financial income and expenses -6,769,795 -172,584 -68,450 0 -7,010,829 -4,030 -7,006,800
Net impairment and reversal of impairment of non-financial assets -66,111 0 0 0 -66,111 0 -66,111
Gains and losses on investments in associates 9,098,991 0 0 0 9,098,991 0 9,098,991
Net other income and expenses 1,259,945 158,821 11,447,217 0 12,865,983 11,022,074 1,843,909
Earnings before tax 78,066,357 26,245,885 13,143,508 128,710 117,584,460 16,147,704 101,436,756
Tax expense -13,706,112 -5,646,451 0 0 -19,352,563 0 -19,352,563
TOTAL NET EARNINGS FOR THE PERIOD 64,360,245 20,599,434 13,143,508 128,710 98,231,897 16,147,704 82,084,193
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX 7,166,094 -7,127,528 632,528 0 671,094 -2,979 674,073

in EUR

Business report

Accounting report

Appendix

2023
Statement of profit or loss and other comprehensive income NON-LIFE LIFE HEALTH ASSET MANAGEMENT TOTAL DISCONTINUED
OPERATIONS		 TOTAL
continuing operations
Insurance service result 37,125,734 23,968,846 -24,452,883 0 36,641,696 -22,680,223 59,321,919
– insurance income 709,194,358 66,444,361 209,957,144 0 985,595,863 193,275,962 792,319,901
– insurance service expenses -711,516,270 -42,475,515 -234,491,840 0 -988,483,626 -215,956,185 -772,527,441
– net reinsurance service result 39,447,646 0 81,814 0 39,529,460 0 39,529,459
Investment result 9,428,053 60,532,202 -2,864,611 0 67,095,644 -2,725,610 69,821,254
– interest income calculated using the effective interest method 7,747,149 13,870,609 684,528 0 22,302,286 176,237 22,126,049
– dividend income 1,851,785 589,749 0 0 2,441,534 0 2,441,534
– net gains and losses on financial investments -723,333 45,255,324 -3,744,177 0 40,787,813 -3,031,559 43,819,372
– net impairment and reversal of impairment of financial investments 689,654 607,543 193,705 0 1,490,902 128,858 1,362,044
– other effects of investing activities -137,202 208,977 1,333 0 73,108 853 72,255
Financial result from insurance contracts -2,905,419 -59,878,679 -92,938 0 -62,877,036 -80,813 -62,796,223
– financial result from insurance contracts -3,015,273 -59,878,679 -120,600 0 -63,014,552 -80,813 -62,933,739
– financial result from reinsurance contracts 109,854 0 27,662 0 137,516 0 137,516
Income from asset management 0 0 0 2,854,726 2,854,726 0 2,854,726
Non-attributable operating expenses -29,418,653 -7,009,164 -2,441,708 -2,825,806 -41,695,332 -2,043,895 -39,651,436
Net other operating income and expenses -3,156,262 -1,910,835 940,977 4,528,839 402,719 449,475 -46,756
Net other financial income and expenses -2,706,646 -111,456 6,776 0 -2,811,326 -11,357 -2,799,969
Net impairment and reversal of impairment of non-financial assets -2,496,338 -6,407 0 0 -2502745 0 -2,502,745
Gains and losses on investments in associates 15,179,539 3,406,222 0 0 18,585,761 0 18,585,761
Net other income and expenses 454,326 286,635 -673,917 2 67,046 -683,446 750,492
Earnings before tax 21,504,333 19,277,364 -29,578,304 4,557,761 15,761,154 -27,775,868 43,537,022
Tax expense -2,357,329 -4,503,647 5,317,578 0 -1,543,398 5,503,377 -7,046,775
TOTAL NET EARNINGS FOR THE PERIOD 19,147,003 14,773,717 -24,260,726 4,557,761 14,217,756 -22,272,491 36,490,247
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX 17,040,524 11,745,037 4,502,375 0 33,287,936 1,545,820 31,742,116

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

Appendix

2.10 The impact of geopolitical risks, the changed economic situation and climate change on the Group's and the Company's financial statements

The changed macroeconomic conditions, geopolitical risks and the effects of climate change were the main factors that had a significant impact on the Group's and the Company's operations in 2024, although to a significantly lesser extent than in the previous year.

Macroeconomic conditions and geopolitical tensions had a major impact on the Group's and the Company's operations in 2024, primarily through their effects on global financial markets. In 2024, macroeconomic developments were mainly driven by declining inflation, which in the euro area approached the target level, followed by interest rate cuts. Due to past restrictive monetary policies, low economic growth rates were recorded in most developed economies. Financial market trends were predominantly influenced by interest rate reductions, which in turn influenced the required yields on debt financial instruments and the market values of these investments. The effects of these changes mostly affected the Group's and the Company's market risks.

Further details on these risk impacts described above are provided in Section 2.8, while the management of these risks is discussed in greater detail in the Business Report.

Natural disasters in Slovenia and around the world impacted the Group's operations in 2024, although to a significantly lesser extent than in the previous year. In terms of natural disasters, 2024 was characterised by hailstorms, floods and typhoons. These events primarily affected the claims volume from insurance contracts in the Group's financial statements.

Natural disasters pose environmental risks for the Company, primarily climate physical risks. These risks are effectively managed through adequate reinsurance protection, thereby minimising their direct impact on the financial statements. The Group considers these risks to be already present. In addition to the climate physical risks mentioned, climate transition risks are also closely monitored. Climate change risks are thus managed systematically and comprehensively. The Group recognises climate change and other environmental risks as both a strategic challenge and an opportunity.

2.11 Tax policy

The Triglav Group regularly reviews and carefully implements processes for identifying, assessing, monitoring and managing tax risks, and if necessary, engages external tax consultants. In the process of tax liability management, the Group's strategy is pursued, with the main emphasis being on safety and reliability. In cooperating with tax authorities, the Group is committed to transparency and responsiveness and to an open and early dialogue. It responds to all inquiries, information or requests in a timely manner.

The Group's key tax policies are:

  • compliance with tax laws and regulations governing taxation,
  • adapting to new digital business guidelines and
  • clarity and transparency in communicating about tax matters to various stakeholders.

At Zavarovalnica Triglav, its Accounting Division is responsible for taxation. Individual Group members are responsible for ensuring compliance with local tax laws, regularly reporting on all tax matters to Zavarovalnica Triglav's Accounting Division. Tax rates by different countries where the Group members operate are presented in Section 2.1.4.

The amount of taxes and contributions calculated by individual type is shown below.

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Insurance premium tax 74,275,176 67,322,022 61,303,390 56,310,724
Fees from income of natural persons
(employer's contributions and taxes) 29,778,827 26,816,689 18,517,726 18,159,825
Corporate income tax 22,731,918 23,713,935 15,865,004 19,388,729
Minimum tax 427,032 0 427,032 0
Fire fee 10,106,694 8,430,325 9,551,459 7,867,386
Value added tax 6,360,858 5,195,391 2,021,551 2,089,425
Fee for the use of building land 1,010,802 972,013 844,090 799,922
Financial services tax 641,745 647,883 90,817 103,385
Other fees 849,338 704,090 0 0
Total fees charged in the year 146,182,390 133,802,348 108,621,069 104,719,396

On 1 January 2024, the Minimum Tax Act (hereinafter: ZMD) entered into force in Slovenia, which was adopted based on the EU Directive on global minimum taxation, which is part of the global agreement under the auspices of the Organisation for Economic Co-operation and Development (OECD). The purpose of the minimum (top-up) tax is to ensure a global minimum taxation of the profits of multinational enterprises (MNEs) and domestic groups with a 15% minimum tax rate.

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Appendix

2.12 The impact of new or amended standards on the preparation of financial statements

2.12.1 New and amended IFRS accounting standards effective in the reporting year

During the reporting year, the Group and the Company applied several amendments to IFRS accounting standards issued by the International Accounting Standards Board (IASB), which became mandatory for reporting periods beginning on or after 1 January 2024.

Amendments to IAS 1 Classification of Liabilities as Current or Non-Current (issued by the IASB on 23 January 2020) and Amendments to IAS 1 Presentation of Financial Statements – Non-Current Liabilities with Covenants (issued by the IASB on 31 October 2022)

Amendments issued in January 2020 provide a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments issued in October 2022 clarify how the conditions that the entity must fulfil within twelve months after the reporting period affect the classification of liabilities and specify that both amendments are effective for annual periods beginning on or after 1 January 2024.

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements (issued by the IASB on 25 May 2023)

The amendments add disclosure requirements and "signposts" within existing disclosure requirements to provide qualitative and quantitative information about supplier finance arrangements.

Amendments to IFRS 16 Leases – Lease Liability in a Sale and Leaseback (issued by the IASB on 22 September 2022)

The amendments to IFRS 16 require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognise any amount of the gain or loss that relates to the right of use it retains. The new requirements do not prevent a seller-lessee from recognising in profit or loss any gain or loss relating to the partial or full termination of a lease.

The impact of new and amended IFRS on the Group's and the Company's financial statements

The new and amended IFRS accounting standards did not have a material impact on the consolidated or separate financial statements of Zavarovalnica Triglav.

2.12.2 New and amended IFRS accounting standards adopted by the EU but not yet effective

At the date of authorisation of these financial statements, the Group and the Company have not applied the following amended IFRS accounting standards issued by the IASB and adopted by the EU but not yet effective.

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued by the IASB on 15 August 2023, effective from 1 January 2025).

The amendments provide guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.

The impact of new and amended IFRS accounting standards adopted by the EU but not yet effective on the Group's and the Company's financial statements

It is estimated that the adopted amendments to IFRS 21 will not significantly impact the consolidated and separate financial statements of Zavarovalnica Triglav.

2.12.3 New and amended IFRS accounting standards issued by the IASB but no yet adopted by the EU

At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the IASB, except for the following new standards and amendments to existing standards not endorsed by the EU on 11 March 2025.

Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments (issued by the IASB on 30 May 2024)

The amendments clarify the classification of financial assets with environmental, social and governance (ESG)-linked features. The amendments also clarify the derecognition date of a financial asset or financial liability and introduce additional disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income and disclosures relating to financial instruments with contingent features.

Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity (issued by the IASB on 18 December 2024)

The amendments to IFRS 9 expand the own-use requirements an entity is required to consider when applying IFRS 9:2.4 to contracts to buy and take delivery of renewable electricity for which the source of production of the electricity is nature-dependent. The hedge accounting requirements in IFRS 9 are amended to permit an entity using a contract for nature-dependent renewable electricity with specified characteristics as a hedging instrument to designate a variable volume of forecast electricity transactions as the hedged item if specified criteria are met, and to measure the hedged item using the same volume assumptions as those used for the hedging instrument. Amendments to IFRS 7 and IFRS 19 introduce disclosure requirements about contracts for nature-dependent electricity with specified characteristics.

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Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

2. Notes to the financial statements

2.12 The impact of new or amended standards on the preparation of financial statements

Appendix

Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 Annual Improvements to IFRS Accounting Standards – Volume 11 (issued by the IASB on 18 July 2024)

They include clarifications, simplifications, corrections and changes in the following areas: (a) hedge accounting for first-time adopters (IFRS 1); (b) gain or loss on derecognition (IFRS 7); (c) disclosure of the deferred difference between fair value and transaction price (IFRS 7); (d) introduction and credit risk disclosures (IFRS 7); (e) lessee derecognition of lease liabilities (IFRS 9); (f) transaction price (IFRS 9); (g) determination of a 'de facto agent' (IFRS 10); (h) cost method (IAS 7).

Standard IFRS 18 Presentation and Disclosure in Financial Statements, issued by the IASB on 9 April 2024, will be replaced by IAS 1 Presentation of Financial Statements.

The standard introduces three sets of new requirements to improve companies' reporting of financial performance and give investors a better basis for analysing and comparing companies. The main changes in the new standard compared with IAS 1 are: (a) the introduction of categories (operating, investing, financing, income tax and discontinued operations) and the inclusion of subtotals in the statement of profit or loss; (b) the introduction of requirements to improve aggregation and disaggregation; and (c) the introduction of disclosures about performance measures determined by management in the notes to the financial statements.

Standard IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued by the IASB on 9 May 2024)

The standard reduces disclosure requirements for subsidiaries when applying IFRS accounting standards in their financial statements. IFRS 19 is voluntary for subsidiaries that meet the eligibility criteria and sets out disclosure requirements for subsidiaries that elect apply it.

Standard IFRS 14 – Regulatory Deferral Accounts issued by IASB on 30 January 2014.

The objective of the standard is to enable an entity that is a first-time adopter of IFRS to continue to account for regulatory deferral account balances in accordance with its previous GAAP when it adopts IFRS.

Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture issued by IASB on 11 September 2014.

The amendments address a conflict between the requirements of IAS 28 and IFRS 10 and clarify that in a transaction involving an associate or joint venture the extent of gain or loss recognition depends on whether the assets sold or contributed constitute a business.

The impact of new and amended IFRS issued but not yet adopted by the EU on the Group's and the Company's financial statements

The management anticipates that the adoption of new and amended standards will have no material impact on the Group's and the Company's consolidated and separate financial statements in the period of initial application.

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3. Notes to the specific significant items in the financial statements

3.1 Insurance business

3.1.1 Assumptions and accounting estimates used in the valuation of insurance contracts

Discount rates

According to the IFRS17, which defines the preparation of discount curves that reflect market conditions as much as possible and the use of market data, discount curves are prepared based on the conditions that also apply in regulation Solvency II. Similarly, regulation Solvency II adopts these criteria for curve preparation. EIOPA is responsible for ensuring the methodology for discount curve development of Solvency II regulation is transparent, adhering to IFRS17's emphasis on market data alignment. Approach of using Solvency II as a basis for discount curve creation not only enhances transparency but also enables a direct comparison between the technical provisions of Solvency II and IFRS17, including the reinsured portions. An additional advantage is that this ensures comparability between Solvency II and IFRS17 technical provisions and their reinsured part.

The discount curve or the time structure of interest rates is prepared at the level of the Company and the Group level using the »bottom-up« approach, where a risk-free time structure of interest rates is first prepared, to which an illiquidity premium is later added.

The requirements of the IFRS17 standard also determine the preparation of a risk-free time structure of interest rates, which is adjusted for the illiquidity premium. The illiquidity premium reflects the markup on the risk-free discount curve that bears the cost or premium of illiquid market conditions.

Risk free yield curves are used for all non-life assets and obligations across the Group except for Company's obligations which are paid out as annuities. They are significant enough in Company's nonlife obligations to merit a separate consideration. Such obligations use 100 % illiquidity premium which corresponds to EIOPA's published risk free rate curves with volatility adjustment.

31 Dec 2024
1 year 5 years 10 years 20 years 30 years
Life Risk free yield 2.24% 2.14% 2.27% 2.26% 2.39%
Illiquidy Premium 0.04%–0.23% 0.05%–0.23% 0.05%–0.23% 0.05%–0.23% 0.04%–0.20%
Non-Life Risk free yield 2.24% 2.14% 2.27% 2.26% 2.39%
Illiquidy Premium 0.23% 0.23% 0.23% 0.23% 0.19%
31 Dec 2023
1 year 5 years 10 years 20 years 30 years
Life Risk free yield 3.36% 2.32% 2.39% 2.41% 2.53%
Illiquidy Premium 0.08%–0.33% 0.08%–0.33% 0.08%–0.33% 0.09%–0.35% 0.08%–0.30%
Non-Life Risk free yield 3.36% 2.32% 2.39% 2.41% 2.53%
Illiquidy Premium 0.20% 0.20% 0.20% 0.20% 0.17%

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

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Estimates of future cash flows to fulfil insurance contracts

All the future cash flows within the boundary of each group of contracts are included in the measurement model of each group of contracts in the scope of IFRS 17. The projection of cash flows, which is used to calculate the best estimate for life and non-life insurance assets and liabilities, contains all relevant cash flows that are required to settle liabilities to policyholders and other beneficiaries from insurance and reinsurance contracts. Cash flows are projected for each insurance contract separately in life business. Cash flows in non-life business are projected on portfolio and cohort level. Cash flows that make up life and non-life insurance assets and liabilities include cash inflows, which include future payments of insurance and reinsurance premiums, and other income excluding income from investments, and cash outflows, which include future pay-outs of benefits to policyholders and beneficiaries, payments of expenses and other payments related to insurance obligations.

For Life insurance and reinsurance contracts, uncertainty in the estimation of future claims and benefit payments and premium receipts arises primarily from the unpredictability of long-term changes in the mortality rates, the variability in the policyholder behaviour and uncertainties regarding future inflation rates and expenses growth.

For non-life insurance and reinsurance contracts, uncertainty in the estimation of future claims and benefit payments and premium receipts arises primarily from large and catastrophic claims, inflation and changes in claim payment patterns. It is assumed the past observations and knowledge of future trends in portfolio composition are representative for projection of cash flows for majority of non-life portfolio. Actuarial judgement must be used though in cases when this assumption is not appropriate.

The assumptions used to prepare estimates of future cash flows are reassessed at least annually and adjusted as necessary.

Significant methods and assumptions used are discussed below.

Mortality

If the volume of internal mortality data is insufficient, best estimate mortality assumptions are determined based on the insurer's historical experience and national mortality tables, expressed as a percentage of the national mortality tables.

For the Company, mortality rates are derived from its own experience over the past five years, as the available internal mortality data are sufficient. Mortality rates for each age group are determined by combining two sources: portfolio data and population data, considering both the number of deaths and central exposure to the risk of death. For age groups with limited internal data, greater weighting is given to population data, whereas for groups with sufficient portfolio data, only internal data are used. For upper age limits where neither internal nor population data are available, extrapolation is performed using a predefined formula. The primary risk factors for grouping are age and sex, as previous analyses indicate these parameters have the most significant impact on observed mortality.

The grouping of the life insurance portfolio and the corresponding mortality assumptions are presented in the following table.

Group % of
national mortality tables
Endowment, annuity (premium payment phase) and term insurances 50%–130%
Whole life insurances 60%–100%
Unit linked insurances 40%–50%

Each of the three groups provide a sufficient amount of data. This could not be achieved with a more detailed grouping. Methods used to derive mortality assumptions have not changed in the last year.

Lapse

Estimation of lapse rates is based on the experience analysis of the company's lapses during the previous years.

Lapses in analysis are defined as termination of payment of premium, which includes the following cases:

  • policy termination without payout,
  • surrender and
  • capitalisation.

The first two cases are treated together as surrender, so separate rates have been derived for surrender and capitalisation.

The basic risk factor used for grouping is policy year.

The lapse analysis was performed for different groups of insurance products. The actual lapse rates from previous years were compared for different groups of insurance products to determine which groups have experienced similar lapse rates in the past, so that similar lapse rates can be expected also in the future. Groups were chosen in such a way to provide enough data for each group and that all insurance products included in certain group have similar lapse rates experience. Methods used to derive surrender and paid-up assumptions have not changed in the last year.

Expenses

Estimates of future expenses relating to fulfilment of contracts in the scope of IFRS 17 in life and non – life business was projected using current expense assumptions adjusted for inflation. Expense assumptions were set based on the company's accounting expenses from the past years, estimated accounting expenses from current business plan and portfolio statistics.

Expenses comprise expenses directly attributable to the groups of contracts and were analysed and modelled separately for traditional and unit-linked business.

The expense inflation assumption was set based on published inflation forecast data from the International Monetary Fund and other publicly available data, adjusted to the entity's own experience.

The expense inflation assumption was determined as a vector (varying rates of expense growth over the years) based on published International Monetary Fund inflation forecasts and other publicly available data, adjusted for the insurer's own experience.

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

The methodology for deriving expense assumptions remained unchanged from the previous year.

Estimates of future expenses relating to fulfilment of contracts in scope of IFRS 17 in non-life business are projected on portfolio level using current expense assumptions and adjusted for inflation where appropriate. Future inflation is also derived from inflation forecast data from the International Monetary Fund but amended with projections of local statistical institutes and other reputable sources using actuarial judgement where relevant.

Expenses comprise company's accounting expenses from past years that are directly attributable to the groups of contracts.

Risk Adjustment

A risk adjustment for non-financial risks is the compensation that is required for bearing the uncertainty about the amount and timing of cash flows that arises from non-financial risks as the insurance contract is fulfilled.

The risk adjustment for life business is calculated on a policy level and then summed up to each unit of account (bottom-up approach) allowing for risk diversification benefit achieved on a portfolio level via simplified linearised approach. The cost of capital method was used to derive the policy-level risk adjustment for non-financial risks. In this setting, annual capital requirements (according to pre-set 95% confidence level) are projected for all future years until policy run-off. Thus, risk adjustment is expressed as an expected present value of the annual cost of capital, calculated by applying 6% cost-of-capital rate on projected annual capital requirements.

The resulting amount of the calculated risk adjustment corresponds to confidence level of 64.1% (2023: 64.2%) for the portfolio run-off horizon.

The method used to determine the risk adjustment for non-financial risk has not changed in the last year.

Risk adjustment for non-life business was calculated on S2 LOB level and then attributed to portfolios of insurance contracts. It is calculated separately for liability for incurred claims and liability for remaining coverage. The selected confidence level for both the risk of liabilities for incurred claims and the risk of liabilities for remaining coverage at Group level and the Company is 75%.

Calculation of risk adjustment for liability for incurred claims uses bootstrapping techniques on claim triangles of homogeneous groups that correspond to the calculation of provision of incurred but not reported claims. We assume that diversification from Solvency II directive is appropriate for non-life business and use it to allocate the risk adjustment to portfolios. Value at risk is taken as an appropriate risk measure.

Risk adjustment for liability for remaining coverage is based on Solvency II capital requirement of insurance sub-modules for non-life risks: premium, lapse and catastrophic risks. It is assumed that the standard formula adequately captures the risks and diversification between lines of business so it's parameters, along with scaling to appropriate confidence interval, is used to allocate the risk adjustment to portfolios.

Provisions calculated as annuities of Triglav Insurance Company's non-life liabilities for incurred claims are considered significant enough to evaluate its risk adjustment separately from other types of cash flows. It is calculated for both liabilities: for reported and unreported but incurred annuities. The calculation of liability for reported annuities is also based on Solvency II's capital requirement and its parameters along with assumption that the risks considered in the calculation follow normal distribution. For the second type it is assumed the frequency severity method is appropriate for evaluation. Bootstrap techniques and value at risk measure are then used to derive the risk adjustment for the chosen confidence interval.

Risk adjustments of reinsurance held treaties are derived using their underlying direct business and active reinsurance contracts, considering the specifics of the risks ceded to reinsurers and the format of reinsurance held treaties.

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Accounting report

Appendix

3.1.2 Insurance contract assets and liabilities

Insurance contract assets and liabilities of the Triglav Group

in EUR
NON-LIFE and HEALTH LIFE
Premium allocation Variable fee approach
31 Dec 2024 General model (BBA) approach (PAA) Total General model (BBA) (VFA) Total TOTAL
Insurance contract assets 59,746 5,830,084 5,889,830 13,951,277 0 13,951,277 19,841,107
Assets for remaining coverage 107,022 7,407,429 7,514,451 22,153,047 0 22,153,047 29,667,498
Assets for incurred claims -47,276 -1,577,345 -1,624,621 -8,201,770 0 -8,201,770 -9,826,391
Insurance contract liabilities 48,552,544 1,006,094,979 1,054,647,523 734,214,449 684,635,994 1,418,850,443 2,473,497,966
Liabilities for remaining coverage 47,385,829 184,706,459 232,092,288 717,577,239 674,005,363 1,391,582,602 1,623,674,890
Liabilities for incurred claims 1,166,715 821,388,520 822,555,235 16,637,210 10,630,631 27,267,841 849,823,076
Total net insurance contract liabilities 48,492,798 1,000,264,895 1,048,757,693 720,263,172 684,635,994 1,404,899,166 2,453,656,859
Net liabilities for remaining coverage 47,278,807 177,299,030 224,577,837 695,424,192 674,005,363 1,369,429,555 1,594,007,392
Net liabilities for incurred claims 1,213,991 822,965,865 824,179,856 24,838,980 10,630,631 35,469,611 859,649,467

NON-LIFE and HEALTH LIFE 31 Dec 2023 General model (BBA) TOTAL Premium allocation approach (PAA) Total General model (BBA) Variable fee approach (VFA) Total Insurance contract assets 0 1,859,718 1,859,718 10,234,160 0 10,234,160 12,093,878 Assets for remaining coverage 0 3,637,114 3,637,114 17,456,327 0 17,456,327 21,093,441 Assets for incurred claims 0 -1,777,396 -1,777,396 -7,222,167 0 -7,222,167 -8,999,563 Insurance contract liabilities 53,163,299 961,543,958 1,014,707,257 759,808,515 556,131,832 1,315,940,347 2,330,647,604 Liabilities for remaining coverage 52,628,539 137,502,387 190,130,926 743,054,126 545,627,793 1,288,681,919 1,478,812,845 Liabilities for incurred claims 534,760 824,041,571 824,576,331 16,754,389 10,504,039 27,258,428 851,834,759 Total net insurance contract liabilities 53,163,299 959,684,240 1,012,847,539 749,574,355 556,131,832 1,305,706,187 2,318,553,726 Net liabilities for remaining coverage 52,628,539 133,865,273 186,493,812 725,597,799 545,627,793 1,271,225,592 1,457,719,404 Net liabilities for incurred claims 534,760 825,818,967 826,353,727 23,976,556 10,504,039 34,480,595 860,834,322

Business report Categories of insurance contract assets and liabilities of the Triglav Group

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
NON-LIFE and HEALTH LIFE
31 Dec 2024 General model (BBA) Premium allocation
approach (PAA)		 Total General model (BBA) Variable fee approach
(VFA)		 Total TOTAL
Insurance contract assets 59,746 5,830,084 5,889,830 13,951,275 0 13,951,275 19,841,105
Estimates of the present value of the future cash flows 114,826 5,847,732 5,962,558 115,287,435 0 115,287,435 121,249,993
Risk adjustment for non-financial risk -4,628 -17,648 -22,276 -13,003,909 0 -13,003,909 -13,026,185
Contractual service margin -50,452 0 -50,452 -88,332,251 0 -88,332,251 -88,382,703
Insurance contract liabilities 48,552,543 1,006,094,979 1,054,647,522 734,214,449 684,635,994 1,418,850,443 2,473,497,965
Estimates of the present value of the future cash flows 29,804,409 959,822,165 989,626,574 648,459,248 566,185,454 1,214,644,702 2,204,271,276
Risk adjustment for non-financial risk 4,144,633 46,272,814 50,417,447 8,851,549 11,521,677 20,373,226 70,790,673
Contractual service margin 14,603,501 0 14,603,501 76,903,652 106,928,863 183,832,515 198,436,016
Total net insurance contract liabilities 48,492,797 1,000,264,895 1,048,757,692 720,263,174 684,635,994 1,404,899,168 2,453,656,860
Net liabilities from expected future cash flows 29,689,583 953,974,433 983,664,016 533,171,813 566,185,454 1,099,357,267 2,083,021,283
Net liabilities from risk adjustment for non-financial risk 4,149,261 46,290,462 50,439,723 21,855,458 11,521,677 33,377,135 83,816,858
Net liabilities from contractual service margin 14,653,953 0 14,653,953 165,235,903 106,928,863 272,164,766 286,818,719
in EUR
NON-LIFE and HEALTH LIFE
31 Dec 2023 Splošni model (BBA) Premium allocation
approach (PAA)		 Total General model (BBA) Variable fee approach
(VFA)		 Total TOTAL
Insurance contract assets 0 1,859,718 1,859,718 10,234,160 0 10,234,160 12,093,878
Estimates of the present value of the future cash flows 0 1,939,532 1,939,532 91,500,121 0 91,500,121 93,439,653
Risk adjustment for non-financial risk 0 -79,814 -79,814 -10,966,798 0 -10,966,798 -11,046,612
Contractual service margin 0 0 0 -70,299,163 0 -70,299,163 -70,299,163
Insurance contract liabilities 53,163,299 961,543,958 1,014,707,257 759,808,515 556,131,832 1,315,940,347 2,330,647,604
Estimates of the present value of the future cash flows 31,633,557 910,286,517 941,920,074 698,961,998 443,299,649 1,142,261,647 2,084,181,721
Risk adjustment for non-financial risk 4,739,729 51,257,441 55,997,170 9,405,727 12,915,268 22,320,995 78,318,165
Contractual service margin 16,790,016 0 16,790,016 51,440,791 99,916,915 151,357,706 168,147,722
Total net insurance contract liabilities 53,163,299 959,684,240 1,012,847,539 749,574,355 556,131,832 1,305,706,187 2,318,553,726
Net liabilities from expected future cash flows 31,633,557 908,346,985 939,980,542 607,461,877 443,299,649 1,050,761,526 1,990,742,068
Net liabilities from risk adjustment for non-financial risk 4,739,729 51,337,255 56,076,984 20,372,525 12,915,268 33,287,793 89,364,777
Net liabilities from contractual service margin 16,790,016 0 16,790,016 121,739,954 99,916,915 221,656,869 238,446,885

Business report Insurance contract assets and liabilities of Zavarovalnica Triglav

Accounting report

Statement of management's responsibilities Independent auditor's report

joint ventures

3.4 Financial investments and their return 3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in the financial statements

  1. Other information

Appendix

in EUR
NON-LIFE and HEALTH LIFE
31 Dec 2024 General model (BBA) Premium allocation
approach (PAA)		 Total General model (BBA) Variable fee approach
(VFA)		 Total TOTAL
Insurance contract assets 59,746 452,373 512,120 13,920,027 0 13,920,027 14,432,147
Assets for remaining coverage 107,023 640,213 747,236 22,103,114 0 22,103,114 22,850,349
Assets for incurred claims -47,276 -187,839 -235,116 -8,183,087 0 -8,183,087 -8,418,202
Insurance contract liabilities 46,372,766 650,298,542 696,671,307 631,146,007 654,796,385 1,285,942,391 1,982,613,699
Liabilities for remaining coverage 45,265,910 150,519,191 195,785,101 616,957,735 644,531,975 1,261,489,710 1,457,274,811
Liabilities for incurred claims 1,106,856 499,779,351 500,886,207 14,188,272 10,264,410 24,452,681 525,338,888
Total net insurance contract liabilities 46,313,019 649,846,168 696,159,188 617,225,979 654,796,385 1,272,022,364 1,968,181,552
Net liabilities for remaining coverage 45,158,887 149,878,978 195,037,865 594,854,621 644,531,975 1,239,386,596 1,434,424,461
Net liabilities for incurred claims 1,154,133 499,967,190 501,121,322 22,371,358 10,264,410 32,635,768 533,757,091

in EUR

NON-LIFE and HEALTH LIFE
Premium allocation Variable fee approach
31 Dec 2023 General model (BBA) approach (PAA) Total General model (BBA) (VFA) Total TOTAL
Insurance contract assets 0 764,741 764,741 10,194,985 0 10,194,985 10,959,726
Assets for remaining coverage 0 1,648,095 1,648,095 17,409,858 0 17,409,858 19,057,953
Assets for incurred claims 0 -883,354 -883,354 -7,214,873 0 -7,214,873 -8,098,227
Insurance contract liabilities 50,331,656 672,525,316 722,856,972 665,248,233 531,845,434 1,197,093,667 1,919,950,640
Liabilities for remaining coverage 49,812,636 124,231,663 174,044,299 651,206,772 521,653,352 1,172,860,125 1,346,904,424
Liabilities for incurred claims 519,020 548,293,653 548,812,673 14,041,461 10,192,082 24,233,543 573,046,216
Total net insurance contract liabilities 50,331,656 671,760,575 722,092,231 655,053,248 531,845,434 1,186,898,683 1,908,990,914
Net liabilities for remaining coverage 49,812,636 122,583,568 172,396,204 633,796,914 521,653,352 1,155,450,267 1,327,846,471
Net liabilities for incurred claims 519,020 549,177,007 549,696,027 21,256,334 10,192,082 31,448,416 581,144,443

Business report Categories of insurance contract assets and liabilities of Zavarovalnica Triglav

Accounting report

Statement of management's responsibilities Independent auditor's report

joint ventures

- 3.4 Financial investments and their return 3.5 Financial contract assets and liabilities

in EUR
NON-LIFE and HEALTH LIFE
31 Dec 2024 General model (BBA) Premium allocation
approach (PAA)		 Total General model (BBA) Variable fee approach
(VFA)		 Total TOTAL
Insurance contract assets 59,746 452,373 512,120 13,920,027 0 13,920,027 14,432,147
Estimates of the present value of the future cash flows 114,826 464,634 579,460 115,086,654 0 115,086,654 115,666,114
Risk adjustment for non-financial risk -4,628 -12,261 -16,889 -12,985,053 0 -12,985,053 -13,001,942
Contractual service margin -50,452 0 -50,452 -88,181,573 0 -88,181,573 -88,232,025
Insurance contract liabilities 46,372,766 650,298,542 696,671,307 631,146,007 654,796,385 1,285,942,391 1,982,613,699
Estimates of the present value of the future cash flows 28,680,847 625,761,932 654,442,780 561,337,683 537,883,993 1,099,221,676 1,753,664,456
Risk adjustment for non-financial risk 4,109,553 24,536,609 28,646,162 6,114,996 10,981,013 17,096,009 45,742,171
Contractual service margin 13,582,366 0 13,582,366 63,693,328 105,931,378 169,624,706 183,207,072
Total net insurance contract liabilities 46,313,019 649,846,168 696,159,188 617,225,979 654,796,385 1,272,022,364 1,968,181,552
Net liabilities from expected future cash flows 28,566,021 625,297,298 653,863,319 446,251,029 537,883,993 984,135,022 1,637,998,341
Net liabilities from risk adjustment for non-financial risk 4,114,181 24,548,870 28,663,051 19,100,049 10,981,013 30,081,062 58,744,113
Net liabilities from contractual service margin 13,632,817 0 13,632,817 151,874,902 105,931,378 257,806,280 271,439,097
in EUR
NON-LIFE and HEALTH
Premium allocation Variable fee approach
31 Dec 2023 General model (BBA) approach (PAA) Total General model (BBA) (VFA) Total TOTAL
Insurance contract assets 0 764,741 764,741 10,194,985 0 10,194,985 10,959,726
Estimates of the present value of the future cash flows 0 777,064 777,064 91,393,420 0 91,393,420 92,170,484
Risk adjustment for non-financial risk 0 -12,323 -12,323 -10,955,818 0 -10,955,818 -10,968,141
Contractual service margin 0 0 0 -70,242,617 0 -70,242,617 -70,242,617
Insurance contract liabilities 50,331,656 672,525,316 722,856,972 665,248,233 531,845,434 1,197,093,667 1,919,950,640
Estimates of the present value of the future cash flows 29,878,552 641,865,036 671,743,588 616,773,779 420,738,303 1,037,512,082 1,709,255,670
Risk adjustment for non-financial risk 4,628,235 30,660,280 35,288,516 7,823,404 12,358,498 20,181,902 55,470,418
Contractual service margin 15,824,868 0 15,824,868 40,651,050 98,748,633 139,399,683 155,224,552
Total net insurance contract liabilities 50,331,656 671,760,575 722,092,231 655,053,248 531,845,434 1,186,898,683 1,908,990,914
Net liabilities from expected future cash flows 29,878,552 641,087,972 670,966,524 525,380,360 420,738,303 946,118,662 1,617,085,186
Net liabilities from risk adjustment for non-financial risk 4,628,235 30,672,603 35,300,839 18,779,222 12,358,498 31,137,721 66,438,559
Net liabilities from contractual service margin 15,824,868 0 15,824,868 110,893,667 98,748,633 209,642,300 225,467,168

239

Business report

Accounting report

Appendix

Breakdown of insurance revenue and insurance service expenses of the Triglav Group

in EUR
NON-LIFE and HEALTH LIFE
2024 General model
(BBA)		 Premium
allocation
approach (PAA)		 Total General model
(BBA)		 Variable fee
approach (VFA)		 Total TOTAL
Insurance revenue recognised in profit or loss 40,232,060 1,159,320,371 1,199,552,431 65,501,981 32,897,961 98,399,942 1,297,952,373
Amounts relating to changes in liabilities for the remaining coverage 33,040,156 0 33,040,156 50,896,373 22,062,469 72,958,842 105,998,998
Expected cash flows from claims and other insurance services 19,618,487 0 19,618,487 27,164,680 8,004,704 35,169,384 54,787,871
Contractual service margin recognised in profit or loss to reflect the transfer of services 11,016,969 0 11,016,969 24,066,424 12,568,038 36,634,462 47,651,431
Release of the risk adjustment for non-financial risk for the risk expired 2,404,700 0 2,404,700 2,550,252 1,882,344 4,432,596 6,837,296
Other 0 0 0 -2,884,983 -392,617 -3,277,600 -3,277,600
Premium income relating to the recovery of insurance acquisition cash flows 7,191,904 0 7,191,904 14,604,670 10,835,492 25,440,162 32,632,066
Income recognised under the PAA approach 0 1,159,320,371 1,159,320,371 938 0 938 1,159,321,309
Insurance service expenses recognised in profit and loss -18,948,019 -906,641,284 -925,589,303 -45,218,158 -21,006,205 -66,224,363 -991,813,666
Incurred claims and other insurance service expenses -10,581,643 -637,876,297 -648,457,940 -23,609,184 -4,996,808 -28,605,992 -677,063,932
Insurance service operating expenses -8,366,376 -268,764,987 -277,131,363 -21,608,974 -16,009,397 -37,618,371 -314,749,734
Acquisition costs -7,191,904 -175,113,624 -182,305,528 -14,604,790 -10,835,492 -25,440,282 -207,745,810
Losses/reversal of losses on onerous contracts 2,409,794 -5,479,811 -3,070,017 1,413,039 30,975 1,444,014 -1,626,003
Administration costs -3,584,266 -88,171,552 -91,755,818 -8,417,223 -5,204,880 -13,622,103 -105,377,921
Net insurance revenue recognised in profit or loss 21,284,041 252,679,087 273,963,128 20,283,823 11,891,756 32,175,579 306,138,707
Insurance finance income/expenses -1,272,857 -22,581,787 -23,854,644 -29,095,888 -97,870,092 -126,965,980 -150,820,624
Effect of changes in interest rates and other financial assumptions -513,993 -8,831,393 -9,345,386 -7,211,121 0 -7,211,121 -16,556,507
Interest accreted using current financial assumptions 0 0 0 -1,500,693 -156,147 -1,656,840 -1,656,840
Interest accreted at the locked-in interest rate -758,864 -13,750,394 -14,509,258 -20,384,074 0 -20,384,074 -34,893,332
Changes in the fair value of the portfolio of insurance contracts with direct participation features 0 0 0 0 -97,713,945 -97,713,945 -97,713,945
Total 20,011,184 230,097,300 250,108,484 -8,812,065 -85,978,336 -94,790,401 155,318,083

Accounting report

Statement of management's responsibilities Independent auditor's report

joint ventures

3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in the financial statements

  1. Other information
in EUR
NON-LIFE and HEALTH LIFE
2023 General model
(BBA)		 Premium
allocation
approach (PAA)		 Total General model
(BBA)		 Variable fee
approach (VFA)		 Total TOTAL
Insurance revenue recognised in profit or loss 36,758,283 1,229,060,514 1,265,818,797 56,203,763 29,164,106 85,367,869 1,351,186,666
Amounts relating to changes in liabilities for the remaining coverage 29,827,221 0 29,827,221 42,647,161 19,715,979 62,363,140 92,190,361
Expected cash flows from claims and other insurance services 16,250,738 0 16,250,738 21,837,544 7,076,811 28,914,355 45,165,093
Contractual service margin recognised in profit or loss to reflect the transfer of services 10,364,467 0 10,364,467 18,676,371 10,753,517 29,429,888 39,794,355
Release of the risk adjustment for non-financial risk for the risk expired 3,212,016 0 3,212,016 2,075,356 1,328,144 3,403,500 6,615,516
Other 0 0 0 57,890 557,507 615,397 615,397
Premium income relating to the recovery of insurance acquisition cash flows 6,931,061 0 6,931,061 13,555,252 9,448,127 23,003,379 29,934,440
Income recognised under the PAA approach 0 1,229,060,514 1,229,060,514 1,349 0 1,349 1,229,061,863
Insurance service expenses recognised in profit and loss -4,024,590 -1,259,454,648 -1,263,479,238 -41,459,605 -18,317,695 -59,777,300 -1,323,256,538
Incurred claims and other insurance service expenses -9,066,626 -1,005,011,873 -1,014,078,499 -22,472,543 -5,546,346 -28,018,889 -1,042,097,388
Insurance service operating expenses 5,042,034 -254,442,774 -249,400,740 -18,987,063 -12,771,349 -31,758,412 -281,159,152
Acquisition costs -6,931,061 -170,249,516 -177,180,577 -13,555,894 -9,448,127 -23,004,021 -200,184,598
Losses/reversal of losses on onerous contracts 14,813,528 3,621,171 18,434,699 1,079,123 1,336,310 2,415,433 20,850,132
Administration costs -2,840,433 -87,814,429 -90,654,862 -6,510,292 -4,659,532 -11,169,824 -101,824,686
Net insurance revenue recognised in profit or loss 32,733,693 -30,394,134 2,339,559 14,744,158 10,846,411 25,590,569 27,930,128
Insurance finance income/expenses -1,887,082 -24,194,420 -26,081,502 -41,835,033 -50,494,156 -92,329,189 -118,410,691
Effect of changes in interest rates and other financial assumptions -1,762,653 -19,289,379 -21,052,032 -21,911,860 0 -21,911,860 -42,963,892
Interest accreted using current financial assumptions 0 0 0 -3,638,454 0 -3,638,454 -3,638,454
Interest accreted at the locked-in interest rate -124,429 -4,905,041 -5,029,470 -16,284,719 -137,177 -16,421,896 -21,451,366
Changes in the fair value of the portfolio of insurance contracts with direct participation features 0 0 0 0 -50,356,979 -50,356,979 -50,356,979
Total 30,846,611 -54,588,554 -23,741,943 -27,090,875 -39,647,745 -66,738,620 -90,480,563

Business report Breakdown of insurance revenue and insurance service expenses of the Triglav Group

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
NON-LIFE and HEALTH
Premium allocation Variable fee approach
2024 General model (BBA) approach (PAA) Total General model (BBA) (VFA) Total TOTAL
Net insurance finance income/expenses recognised in profit or loss -758,864 -13,750,394 -14,509,258 -12,725,101 -97,870,092 -110,595,193 -125,104,451
Net insurance finance income/expenses recognised in other comprehensive income -513,993 -8,831,393 -9,345,386 -16,370,787 0 -16,370,787 -25,716,173
Total net insurance finance income/expenses -1,272,857 -22,581,787 -23,854,644 -29,095,888 -97,870,092 -126,965,980 -150,820,624

in EUR

NON-LIFE and HEALTH
2023 General model (BBA) Premium allocation
approach (PAA)		 Total General model (BBA) Variable fee approach
(VFA)		 Total TOTAL
Net insurance finance income/expenses recognised in profit or loss -124,430 -4,905,041 -5,029,471 -14,219,827 -50,494,156 -64,713,983 -69,743,454
Net insurance finance income/expenses recognised in other comprehensive income -1,762,653 -19,289,374 -21,052,027 -27,615,206 0 -27,615,206 -48,667,233
Total net insurance finance income/expenses -1,887,082 -24,194,420 -26,081,502 -41,835,033 -50,494,156 -92,329,189 -118,410,691

Income and expenses from insurance contracts of the Triglav Group relating to discontinued operations

Part of the income and expenses achieved by the Triglav Group in 2024 and 2023 relates to discontinued operations. Below is a reconciliation of the amounts disclosed in profit or loss.

in EUR
2024 2023
Total Of which
continuing operations		 Of which
discontinued operations		 Total Of which
continuing operations		 Of which
discontinued operations
Income from insurance contracts issued recognised in profit or loss 1,297,952,373 1,297,899,920 52,453 1,351,186,665 1,157,910,703 193,275,962
Expenses from insurance contracts issued recognised in profit or loss -991,813,666 -997,300,760 5,487,094 -1,323,256,538 -1,107,300,071 -215,956,467
Insurance finance income and expenses -125,104,451 -124,991,075 -113,376 -69,743,454 -69,662,641 -80,813
Total 181,034,256 175,608,085 5,426,171 -41,813,327 -19,052,009 -22,761,318

Business report Insurance revenue and insurance service expenses of Zavarovalnica Triglav

Accounting report

Statement of management's responsibilities Independent auditor's report

3.3 Investments in subsidiaries, associates and

joint ventures 3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in

Appendix

in EUR
NON-LIFE and HEALTH LIFE
2024 General model
(BBA)		 Premium
allocation
approach (PAA)		 Total General model
(BBA)		 Variable fee
approach (VFA)		 Total TOTAL
Insurance revenue recognised in profit or loss 38,569,689 795,980,923 834,550,612 44,783,128 31,770,079 76,553,207 911,103,819
Amounts relating to changes in liabilities for the remaining coverage 32,336,047 0 32,336,047 36,676,348 21,434,092 58,110,440 90,446,487
Expected cash flows from claims and other insurance services 19,306,035 0 19,306,035 15,558,437 7,582,576 23,141,013 42,447,047
Contractual service margin recognised in profit or loss to reflect the transfer of services 10,645,725 0 10,645,725 20,154,889 12,442,472 32,597,361 43,243,086
Release of the risk adjustment for non-financial risk for the risk expired 2,384,288 0 2,384,288 2,200,369 1,808,746 4,009,115 6,393,402
Other 0 0 0 -1,237,346 -399,702 -1,637,048 -1,637,048
Premium income relating to the recovery of insurance acquisition cash flows 6,233,642 0 6,233,642 8,105,842 10,335,987 18,441,829 24,675,471
Income recognised under the PAA approach 0 795,980,923 795,980,923 938 0 938 795,981,861
Insurance service expenses recognised in profit and loss -17,730,601 -581,369,420 -599,100,022 -26,810,471 -19,841,758 -46,652,229 -645,752,251
Incurred claims and other insurance service expenses -10,261,132 -391,795,955 -402,057,088 -14,317,951 -4,933,662 -19,251,613 -421,308,700
Insurance service operating expenses -7,469,469 -189,573,465 -197,042,934 -12,492,520 -14,908,097 -27,400,616 -224,443,550
Acquisition costs -6,233,642 -117,230,658 -123,464,300 -8,105,961 -10,335,987 -18,441,948 -141,906,249
Losses/reversal of losses on onerous contracts 2,347,679 -3,440,340 -1,092,661 1,336,260 275,491 1,611,751 519,090
Administration costs -3,583,505 -68,902,467 -72,485,973 -5,722,818 -4,847,601 -10,570,419 -83,056,391
Net insurance revenue recognised in profit or loss 20,839,088 214,611,502 235,450,590 17,972,658 11,928,320 29,900,978 265,351,568
Insurance finance income/expenses -1,201,779 -13,885,238 -15,087,018 -25,496,575 -95,568,179 -121,064,754 -136,151,771
Effect of changes in interest rates and other financial assumptions -458,859 -5,633,303 -6,092,162 -5,482,005 0 -5,482,005 -11,574,167
Interest accreted using current financial assumptions 0 0 0 -1,500,693 -153,663 -1,654,357 -1,654,357
Interest accreted at the locked-in interest rate -742,920 -8,251,935 -8,994,855 -18,513,877 0 -18,513,877 -27,508,732
Changes in the fair value of the portfolio of insurance contracts with direct participation features 0 0 0 0 -95,414,516 -95,414,516 -95,414,516
Total 19,637,309 200,726,264 220,363,573 -7,523,917 -83,639,858 -91,163,775 129,199,797

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
NON-LIFE and HEALTH LIFE
2023 General model
(BBA)		 Premium
allocation
approach (PAA)		 Total General model
(BBA)		 Variable fee
approach (VFA)		 Total TOTAL
Insurance revenue recognised in profit or loss 34,945,170 884,206,332 919,151,501 38,394,188 28,050,173 66,444,361 985,595,863
Amounts relating to changes in liabilities for the remaining coverage 29,104,412 0 29,104,412 30,424,967 18,988,199 49,413,166 78,517,578
Expected cash flows from claims and other insurance services 15,860,514 0 15,860,514 12,761,768 6,667,170 19,428,938 35,289,453
Contractual service margin recognised in profit or loss to reflect the transfer of services 10,058,777 0 10,058,777 15,410,353 10,602,928 26,013,281 36,072,059
Release of the risk adjustment for non-financial risk for the risk expired 3,185,121 0 3,185,121 1,782,110 1,253,659 3,035,769 6,220,890
Other 0 0 0 470,735 464,442 935,177 935,177
Premium income relating to the recovery of insurance acquisition cash flows 5,840,757 0 5,840,757 7,967,872 9,061,975 17,029,847 22,870,604
Income recognised under the PAA approach 0 884,206,332 884,206,332 1,349 0 1,349 884,207,681
Insurance service expenses recognised in profit and loss -2,392,259 -943,615,852 -946,008,112 -24,590,808 -17,884,706 -42,475,514 -988,483,626
Incurred claims and other insurance service expenses -8,796,681 -765,487,855 -774,284,536 -13,754,753 -5,217,847 -18,972,600 -793,257,137
Insurance service operating expenses 6,404,422 -178,127,997 -171,723,575 -10,836,055 -12,666,859 -23,502,914 -195,226,489
Acquisition costs -5,840,757 -113,198,532 -119,039,289 -7,968,515 -9,061,975 -17,030,489 -136,069,779
Losses/reversal of losses on onerous contracts 14,955,093 6,073,753 21,028,846 1,441,836 771,338 2,213,174 23,242,020
Administration costs -2,709,914 -71,003,218 -73,713,132 -4,309,377 -4,376,222 -8,685,599 -82,398,731
Net insurance revenue recognised in profit or loss 32,552,910 -59,409,521 -26,856,610 13,803,380 10,165,467 23,968,847 -2,887,763
Insurance finance income/expenses -1,743,036 -15,552,911 -17,295,947 -36,498,155 -46,552,077 -83,050,233 -100,346,180
Effect of changes in interest rates and other financial assumptions -1,632,593 -12,527,481 -14,160,074 -18,207,027 0 -18,207,027 -32,367,101
Interest accreted using current financial assumptions 0 0 0 -3,638,454 0 -3,638,454 -3,638,454
Interest accreted at the locked-in interest rate -110,443 -3,025,431 -3,135,873 -14,652,674 -134,223 -14,786,897 -17,922,770
Changes in the fair value of the portfolio of insurance contracts with direct participation features 0 0 0 0 -46,417,854 -46,417,854 -46,417,854
Total 30,809,874 -74,962,432 -44,152,557 -22,694,775 -36,386,610 -59,081,385 -103,233,943

Business report Breakdown of insurance revenue and insurance service expenses of Zavarovalnica Triglav

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
NON-LIFE and HEALTH
Premium allocation Variable fee approach
2024 General model (BBA) approach (PAA) Total General model (BBA) (VFA) Total TOTAL
Net insurance finance income/expenses recognised in profit or loss -742,920 -8,251,935 -8,994,855 -11,299,193 -95,568,179 -106,867,372 -115,862,227
Net insurance finance income/expenses recognised in other comprehensive income -458,859 -5,633,303 -6,092,162 -14,197,382 0 -14,197,382 -20,289,544
Total net insurance finance income/expenses -1,201,779 -13,885,238 -15,087,018 -25,496,575 -95,568,179 -121,064,754 -136,151,771

in EUR

NON-LIFE and HEALTH
2023 General model (BBA) Premium allocation
approach (PAA)		 Total General model (BBA) Variable fee approach
(VFA)		 Total TOTAL
Net insurance finance income/expenses recognised in profit or loss -110,443 -3,025,431 -3,135,873 -13,326,601 -46,552,077 -59,878,679 -63,014,552
Net insurance finance income/expenses recognised in other comprehensive income -1,632,593 -12,527,481 -14,160,074 -23,171,554 0 -23,171,554 -37,331,628
Total net insurance finance income/expenses -1,743,036 -15,552,911 -17,295,947 -36,498,155 -46,552,077 -83,050,233 -100,346,180

Income and expenses from insurance contracts of Zavarovalnica Triglav relating to discontinued operations

Part of the income and expenses achieved by Zavarovalnica Triglav in 2023 and 2024 relates to discontinued operations. Below is a reconciliation of the amounts disclosed in profit or loss.

in EUR
2024 2023
Of which Of which Of which Of which
Total continuing operations discontinued operations Total continuing operations discontinued operations
Income from insurance contracts issued recognised in profit or loss 911,103,819 911,051,366 52,453 985,595,863 792,319,901 193,275,962
Expenses from insurance contracts issued recognised in profit or loss -645,752,251 -651,239,341 5,487,091 -988,483,626 -772,527,441 215,956,185
Insurance finance income and expenses -115,862,227 -115,748,853 -113,374 -63,014,552 -62,933,739 -80,813
Total 149,489,341 144,063,172 5,426,170 -65,902,315 -43,141,279 -22,761,036

Accounting report

Statement of management's responsibilities Independent auditor's report

Search in report

Appendix

3.1.4 Assets and liabilities for remaining coverage and assets and liabilities for incurred claims

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of the Triglav Group

in EUR
NON LIFE and HEALTH
2024 Remaining coverage Remaining coverage
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Excluding the
loss component		 Loss
component		 Incurred claims Total Excluding the
loss component		 Loss
component		 Incurred claims Total TOTAL
Opening balance of net insurance contract assets/liabilities -47,681,655 -4,946,886 -534,759 -53,163,300 -697,562,894 -28,033,810 -23,976,556 -749,573,260 -802,736,560
Insurance contract assets 0 0 0 0 17,629,497 -173,171 -7,222,167 10,234,159 10,234,159
Insurance contract liabilities -47,681,655 -4,946,886 -534,759 -53,163,300 -715,192,391 -27,860,639 -16,754,389 -759,807,419 -812,970,719
Insurance revenue 40,232,059 0 0 40,232,059 65,501,041 0 0 65,501,041 105,733,100
Contracts under the modified retrospective approach 500,773 0 0 500,773 9,708,032 0 0 9,708,032 10,208,805
Contracts under the fair value approach 0 0 0 0 7,976,991 0 0 7,976,991 7,976,991
Other contracts 39,731,287 0 0 39,731,287 47,816,020 0 0 47,816,020 87,547,307
Insurance service expenses -7,191,904 2,409,795 -14,165,909 -18,948,018 -14,604,670 1,413,036 -32,026,174 -45,217,808 -64,165,826
Incurred claims 0 1,703,030 -14,165,909 -12,462,879 0 2,606,987 -32,026,174 -29,419,187 -41,882,066
Incurred claims (excluding investment components) and other
incurred insurance service expenses		 0 1,703,030 -18,209,175 -16,506,145 0 2,606,987 -32,757,794 -30,150,807 -46,656,952
Changes that relate to past service (e.g. changes in fulfilment cash
flows relating to the liability for incurred claims)		 0 0 4,043,266 4,043,266 0 0 731,620 731,620 4,774,886
Insurance service operating expenses -7,191,904 706,765 0 -6,485,139 -14,604,670 -1,193,951 0 -15,798,621 -22,283,760
Amortisation of insurance acquisition cash flows -7,191,904 0 0 -7,191,904 -14,604,670 0 0 -14,604,670 -21,796,574
Changes that relate to future service (i.e. losses on onerous contracts) 0 706,765 0 706,765 0 -1,193,951 0 -1,193,951 -487,186
Investment components excluded from insurance revenue and
insurance service expenses		 0 0 0 0 106,531,453 0 -106,531,453 0 0
Net insurance finance income/expenses -1,195,275 -148,376 70,790 -1,272,861 -28,312,602 -424,851 -358,503 -29,095,956 -30,368,814
Cash flows -28,756,565 0 13,415,887 -15,340,678 -99,906,890 0 138,055,411 38,148,521 22,807,842
Premiums received for insurance contracts issued -35,602,280 0 0 -35,602,280 -120,594,645 0 0 -120,594,645 -156,196,925
Claims and other insurance service expenses paid, including investment
components		 0 0 13,415,887 13,415,887 0 0 138,055,411 138,055,411 151,471,297
Insurance acquisition cash flows 6,845,715 0 0 6,845,715 20,687,755 0 0 20,687,755 27,533,470
Effect of exchange rate differences 0 0 0 0 -17,421 -6,584 -1,706 -25,711 -25,713
Closing balance of net insurance contract assets/liabilities -44,593,340 -2,685,467 -1,213,991 -48,492,798 -668,371,983 -27,052,209 -24,838,980 -720,263,172 -768,755,970
Insurance contract assets 122,175 -15,153 -47,276 59,746 22,224,737 -71,690 -8,201,770 13,951,277 14,011,023
Insurance contract liabilities -44,715,515 -2,670,314 -1,166,715 -48,552,544 -690,596,720 -26,980,519 -16,637,210 -734,214,449 -782,766,993

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
NON LIFE and HEALTH
2023 Remaining coverage Remaining coverage
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Excluding the
loss component		 Loss
component		 Incurred claims Total Excluding the
loss component		 Loss
component		 Incurred claims Total TOTAL
Opening balance of net insurance contract assets/liabilities -48,605,952 -19,692,980 771,960 -67,526,972 -701,327,835 -28,845,103 -23,027,430 -753,200,368 -820,727,340
Insurance contract assets 0 0 0 0 11,814,766 -43,334 -5,613,417 6,158,015 6,158,015
Insurance contract liabilities -48,605,952 -19,692,980 771,960 -67,526,972 -713,142,601 -28,801,769 -17,414,013 -759,358,383 -826,885,355
Insurance revenue 36,758,283 0 0 36,758,283 56,202,414 0 0 56,202,414 92,960,697
Contracts under the modified retrospective approach 949,044 0 0 949,044 10,741,743 0 0 10,741,743 11,690,787
Contracts under the fair value approach 0 0 0 0 5,408,533 0 0 5,408,533 5,408,533
Other contracts 35,809,239 0 0 35,809,239 40,052,138 0 0 40,052,138 75,861,377
Insurance service expenses -6,931,061 14,813,528 -11,907,057 -4,024,590 -13,555,253 1,079,123 -28,982,664 -41,458,794 -45,483,384
Incurred claims 0 17,052,950 -11,907,057 5,145,893 0 2,782,389 -28,982,664 -26,200,275 -21,054,382
Incurred claims (excluding investment components) and other
incurred insurance service expenses		 0 17,052,950 -18,202,224 -1,149,274 0 2,782,389 -28,899,078 -26,116,689 -27,265,963
Changes that relate to past service (e.g. changes in fulfilment cash
flows relating to the liability for incurred claims)		 0 0 6,295,167 6,295,167 0 0 -83,586 -83,586 6,211,581
Insurance service operating expenses -6,931,061 -2,239,422 0 -9,170,483 -13,555,253 -1,703,266 0 -15,258,519 -24,429,002
Amortisation of insurance acquisition cash flows -6,931,061 0 0 -6,931,061 -13,555,253 0 0 -13,555,253 -20,486,314
Changes that relate to future service (i.e. losses on onerous contracts) 0 -2,239,422 0 -2,239,422 0 -1,703,266 0 -1,703,266 -3,942,688
Investment components excluded from insurance revenue and
insurance service expenses		 0 0 0 0 102,846,524 0 -102,846,524 0 0
Net insurance finance income/expenses -2,009,470 -67,434 189,822 -1,887,082 -41,310,062 -269,807 -255,164 -41,835,033 -43,722,115
Cash flows -26,893,453 0 10,410,518 -16,482,935 -100,399,871 0 131,135,040 30,735,169 14,252,234
Premiums received for insurance contracts issued -33,641,897 0 0 -33,641,897 -118,856,139 0 0 -118,856,139 -152,498,036
Claims and other insurance service expenses paid, including investment
components		 0 0 10,410,518 10,410,518 0 0 131,135,040 131,135,040 141,545,558
Insurance acquisition cash flows 6,748,444 0 0 6,748,444 18,456,268 0 0 18,456,268 25,204,712
Effect of exchange rate differences 0 0 0 0 10,090 1,977 188 12,255 12,252
Closing balance of net insurance contract assets/liabilities -47,681,652 -4,946,887 -534,760 -53,163,299 -697,562,891 -28,033,810 -23,976,556 -749,573,257 -802,736,556
Insurance contract assets 0 0 0 0 17,629,498 -173,171 -7,222,167 10,234,160 10,234,160
Insurance contract liabilities -47,681,652 -4,946,887 -534,760 -53,163,299 -715,192,389 -27,860,639 -16,754,389 -759,807,417 -812,970,716

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

2024 2023
Remaining coverage Incurred claims Remaining coverage Incurred claims
NON-LIFE AND HEALTH INSURANCE CONTRACTS MEASURED
UNDER THE PREMIUM ALLOCATION APPROACH (PAA)		 Excluding the
loss component		 Loss
component		 Estimates of the
present value of
the future
cash flows		 Risk
adjustment for
non-financial
risk		 Total Excluding the
loss component		 Loss
component		 Estimates of the
present value of
the future
cash flows		 Risk
adjustment for
non-financial
risk		 Total
Opening balance of net insurance contract assets/liabilities -126,020,190 -7,846,181 -774,481,712 -51,337,256 -959,685,339 -114,845,557 -11,467,562 -589,070,721 -54,901,086 -770,284,926
Insurance contract assets 3,623,692 6,861 -1,697,582 -79,814 1,853,157 9,069,865 -16,373 -1,951,167 -126,445 6,975,880
Insurance contract liabilities -129,643,882 -7,853,042 -772,784,130 -51,257,442 -961,538,496 -123,915,422 -11,451,189 -587,119,554 -54,774,641 -777,260,806
Insurance revenue 1,159,321,307 0 0 0 1,159,321,307 1,229,060,514 0 0 0 1,229,060,514
Insurance service expenses -175,113,744 -5,479,812 -732,378,522 6,330,438 -906,641,640 -170,249,515 3,621,170 -1,098,512,567 5,686,264 -1,259,454,648
Incurred claims 0 0 -732,378,522 6,330,438 -726,048,084 0 0 -1,098,512,567 5,686,264 -1,092,826,303
Incurred claims (excluding investment components) and other
incurred insurance service expenses		 0 0 -727,190,483 -20,156,883 -747,347,366 0 0 -1,087,833,405 -28,079,089 -1,115,912,494
Changes that relate to past service (e.g. changes in fulfilment cash
flows relating to the liability for incurred claims)		 0 0 -5,188,039 26,487,321 21,299,282 0 0 -10,679,162 33,765,353 23,086,191
Insurance service operating expenses -175,113,744 -5,479,812 0 0 -180,593,556 -170,249,515 3,621,170 0 0 -166,628,345
Amortisation of insurance acquisition cash flows -175,113,744 0 0 0 -175,113,744 -170,249,515 0 0 0 -170,249,515
Changes that relate to future service (i.e. losses on onerous contracts) 0 -5,479,812 0 0 -5,479,812 0 3,621,170 0 0 3,621,170
Investment components excluded from insurance revenue and
insurance service expenses		 3,273,587 0 -3,273,587 0 0 3,183,018 0 -3,183,018 0 0
Net insurance finance income/expenses 0 0 -21,302,337 -1,279,145 -22,581,482 0 0 -22,070,157 -2,124,263 -24,194,420
Cash flows -1,025,374,544 0 754,877,268 0 -270,497,276 -1,073,185,986 0 938,314,742 0 -134,871,244
Premiums received for insurance contracts issued -1,218,603,374 0 0 0 -1,218,603,374 -1,250,524,825 0 0 0 -1,250,524,825
Claims and other insurance service expenses paid, including investment
components		 0 0 754,877,268 0 754,877,268 0 0 938,314,742 0 938,314,742
Insurance acquisition cash flows 193,228,830 0 0 0 193,228,830 177,338,839 0 0 0 177,338,839
Effect of exchange rate differences 3,214,565 -431 -3,390,100 -4,499 -180,465 3,201,452 211 -3,143,007 1,828 60,484
Closing balance of net insurance contract assets/liabilities -163,972,606 -13,326,424 -776,675,403 -46,290,462 -1,000,264,895 -126,019,092 -7,846,181 -774,481,710 -51,337,257 -959,684,240
Insurance contract assets 7,394,662 12,767 -1,559,697 -17,648 5,830,084 3,630,253 6,861 -1,697,532 -79,864 1,859,718
Insurance contract liabilities -171,367,268 -13,339,191 -775,115,706 -46,272,814 -1,006,094,979 -129,649,345 -7,853,042 -772,784,178 -51,257,393 -961,543,958

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2023
Remaining coverage 2024 Remaining coverage
LIFE INSURANCE CONTRACTS MEASURED
UNDER THE VARIABLE FEE APPROACH (VFA)		 Excluding the
loss component		 Loss
component		 Incurred claims Total Excluding the
loss component		 Loss
component		 Incurred claims Total
Opening balance of net insurance contract assets/liabilities -544,666,496 -961,297 -10,504,039 -556,131,832 -468,769,964 -2,297,618 -9,109,713 -480,177,295
Insurance contract assets 0 0 0 0 17,472 -13,642 0 3,830
Insurance contract liabilities -544,666,496 -961,297 -10,504,039 -556,131,832 -468,787,436 -2,283,976 -9,109,713 -480,181,125
Insurance revenue 32,897,961 0 0 32,897,961 29,164,106 0 0 29,164,106
Contracts under the modified retrospective approach 7,938,713 0 0 7,938,713 8,395,738 0 0 8,395,738
Contracts under the fair value approach 1,597,398 0 0 1,597,398 1,196,176 0 0 1,196,176
Other contracts 23,361,849 0 0 23,361,849 19,572,192 0 0 19,572,192
Insurance service expenses -10,835,492 30,974 -10,201,688 -21,006,206 -9,448,127 1,336,311 -10,205,879 -18,317,695
Incurred claims 0 95,482 -10,201,688 -10,106,206 0 163,452 -10,205,879 -10,042,427
Incurred claims (excluding investment components) and other incurred insurance
service expenses		 0 95,482 -11,420,189 -11,324,707 0 163,452 -10,873,854 -10,710,402
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the
liability for incurred claims)		 0 0 1,218,501 1,218,501 0 0 667,975 667,975
Insurance service operating expenses -10,835,492 -64,508 0 -10,900,000 -9,448,127 1,172,859 0 -8,275,268
Amortisation of insurance acquisition cash flows -10,835,492 0 0 -10,835,492 -9,448,127 0 0 -9,448,127
Changes that relate to future service (i.e. losses on onerous contracts) 0 -64,508 0 -64,508 0 1,172,859 0 1,172,859
Investment components excluded from insurance revenue and insurance service
expenses		 67,047,925 0 -67,047,925 0 59,410,768 0 -59,410,768 0
Net insurance finance income/expenses -97,713,945 0 -156,147 -97,870,092 -50,356,979 0 -137,177 -50,494,156
Cash flows -119,805,676 0 77,279,168 -42,526,508 -104,668,950 0 68,359,496 -36,309,454
Premiums received for insurance contracts issued -134,231,309 0 0 -134,231,309 -119,628,972 0 0 -119,628,972
Claims and other insurance service expenses paid, including investment components 0 0 77,279,168 77,279,168 0 0 68,359,496 68,359,496
Insurance acquisition cash flows 14,425,633 0 0 14,425,633 14,960,022 0 0 14,960,022
Effect of exchange rate differences 78 0 682 760 10 0 2,660 2,670
Closing balance of net insurance contract assets/liabilities -673,075,119 -930,244 -10,630,631 -684,635,994 -544,666,496 -961,297 -10,504,039 -556,131,832
Insurance contract assets 0 0 0 0 0 0 0 0
Insurance contract liabilities -673,075,119 -930,244 -10,630,631 -684,635,994 -544,666,496 -961,297 -10,504,039 -556,131,832

Accounting report

Business report Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of Zavarovalnica Triglav
Accounting report
Statement of management's responsibilities NON LIFE and HEALTH in EUR
Independent auditor's report
1. Financial statements		 2024 Remaining coverage LIFE
Remaining coverage
2. Notes to the financial statements
3. Notes to the specific significant items in
the financial statements		 CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Excluding the
loss component		 Loss
component		 Incurred claims Total Excluding the
loss component		 Loss
component		 Incurred claims Total TOTAL
3.1 Insurance business
3.2 Reinsurance business		 Opening balance of net insurance contract assets/liabilities as at
1 January 2024		 -45,007,306 -4,805,330 -519,020 -50,331,656 -612,098,395 -21,697,421 -21,256,334 -655,052,150 -705,383,806
3.3 Investments in subsidiaries, associates and Insurance contract assets 0 0 0 0 17,580,116 -170,258 -7,214,873 10,194,985 10,194,985
joint ventures
3.4 Financial investments and their return
3.5 Financial contract assets and liabilities		 Insurance contract liabilities -45,007,306 -4,805,330 -519,020 -50,331,656 -629,678,511 -21,527,162 -14,041,461 -665,247,135 -715,578,791
3.6 Operating expenses Insurance revenue 38,569,689 0 0 38,569,689 44,782,190 0 0 44,782,190 83,351,879
3.7 Notes to other significant items in Contracts under the modified retrospective approach 500,776 0 0 500,776 9,708,032 0 0 9,708,032 10,208,808
the financial statements
4. Other information		 Contracts under the fair value approach 0 0 0 0 7,115,418 0 0 7,115,418 7,115,418
Appendix Other contracts 38,068,913 0 0 38,068,913 27,958,740 0 0 27,958,740 66,027,653
Insurance service expenses -6,233,642 2,347,679 -13,844,638 -17,730,601 -8,105,842 1,336,260 -20,040,539 -26,810,120 -44,540,722
Incurred claims 0 1,680,515 -13,844,638 -12,164,122 0 930,800 -20,040,539 -19,109,739 -31,273,862
Incurred claims (excluding investment components) and other
incurred insurance service expenses		 0 1,680,515 -17,981,056 -16,300,541 0 930,800 -22,522,132 -21,591,333 -37,891,874
Changes that relate to past service (e.g. changes in fulfilment cash
flows relating to the liability for incurred claims)		 0 0 4,136,419 4,136,419 0 0 2,481,594 2,481,594 6,618,012
Insurance service operating expenses -6,233,642 667,164 0 -5,566,479 -8,105,842 405,460 0 -7,700,381 -13,266,860
Amortisation of insurance acquisition cash flows -6,233,642 0 0 -6,233,642 -8,105,842 0 0 -8,105,842 -14,339,484
Changes that relate to future service (i.e. losses on onerous contracts) 0 667,164 0 667,164 0 405,460 0 405,460 1,072,624
Investment components excluded from insurance revenue and
insurance service expenses		 0 0 0 0 94,630,493 0 -94,630,493 0 0
Net insurance finance income/expenses -1,128,784 -143,656 70,660 -1,201,779 -24,923,185 -248,673 -324,717 -25,496,575 -26,698,354
Cash flows -28,757,537 0 13,138,865 -15,618,672 -68,530,050 0 113,880,725 45,350,676 29,732,003
Premiums received for insurance contracts issued -35,602,280 0 0 -35,602,280 -79,616,296 0 0 -79,616,296 -115,218,576
Claims and other insurance service expenses paid, including investment
components		 0 0 13,138,865 13,138,865 0 0 113,880,725 113,880,725 127,019,590

Insurance acquisition cash flows 6,844,743 0 0 6,844,743 11,086,246 0 0 11,086,246 17,930,989

31 December 2024 -42,557,580 -2,601,307 -1,154,133 -46,313,019 -574,244,787 -20,609,834 -22,371,358 -617,225,979 -663,538,999 Insurance contract assets 122,175 -15,153 -47,276 59,746 22,164,662 -61,548 -8,183,087 13,920,027 13,979,774 Insurance contract liabilities -42,679,755 -2,586,155 -1,106,856 -46,372,766 -596,409,449 -20,548,286 -14,188,272 -631,146,007 -677,518,773

249

Closing balance of net insurance contract assets/liabilities as at

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
NON LIFE and HEALTH
2023 Remaining coverage Remaining coverage LIFE
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Excluding the
loss component		 Loss
component		 Incurred claims Total Excluding the
loss component		 Loss
component		 Incurred claims Total TOTAL
Opening balance of net insurance contract assets/liabilities as at
1 January 2024		 -45,356,068 -19,692,989 815,774 -64,233,282 -626,216,860 -22,943,777 -20,609,803 -669,770,440 -734,003,722
Insurance contract assets 0 0 0 0 11,611,742 -20,243 -5,519,973 6,071,526 6,071,526
Insurance contract liabilities -45,356,068 -19,692,989 815,774 -64,233,282 -637,828,602 -22,923,534 -15,089,830 -675,841,966 -740,075,248
Insurance revenue 34,945,170 0 0 34,945,170 38,392,839 0 0 38,392,839 73,338,009
Contracts under the modified retrospective approach 949,050 0 0 949,050 10,741,743 0 0 10,741,743 11,690,793
Contracts under the fair value approach 0 0 0 0 4,352,602 0 0 4,352,602 4,352,602
Other contracts 33,996,119 0 0 33,996,119 23,298,495 0 0 23,298,495 57,294,614
Insurance service expenses -5,840,757 14,955,093 -11,506,595 -2,392,259 -7,967,872 1,441,836 -18,063,961 -24,589,997 -26,982,256
Incurred claims 0 16,948,972 -11,506,595 5,442,377 0 965,172 -18,063,961 -17,098,789 -11,656,411
Incurred claims (excluding investment components) and other
incurred insurance service expenses		 0 16,948,972 -17,833,831 -884,859 0 965,172 -19,431,700 -18,466,528 -19,351,387
Changes that relate to past service (e.g. changes in fulfilment cash
flows relating to the liability for incurred claims)		 0 0 6,327,236 6,327,236 0 0 1,367,740 1,367,740 7,694,976
Insurance service operating expenses -5,840,757 -1,993,879 0 -7,834,636 -7,967,872 476,664 0 -7,491,208 -15,325,845
Amortisation of insurance acquisition cash flows -5,840,757 0 0 -5,840,757 -7,967,872 0 0 -7,967,872 -13,808,630
Changes that relate to future service (i.e. losses on onerous contracts) 0 -1,993,879 0 -1,993,879 0 476,664 0 476,664 -1,517,215
Investment components excluded from insurance revenue and
insurance service expenses		 0 0 0 0 92,331,494 0 -92,331,494 0 0
Net insurance finance income/expenses -1,865,707 -67,435 190,106 -1,743,036 -36,054,367 -195,480 -248,308 -36,498,155 -38,241,191
Cash flows -26,889,943 0 9,981,695 -16,908,248 -72,583,628 0 109,997,231 37,413,603 20,505,355
Premiums received for insurance contracts issued -32,951,664 0 0 -32,951,664 -83,173,821 0 0 -83,173,821 -116,125,485
Claims and other insurance service expenses paid, including investment

components 0 0 9,981,695 9,981,695 0 0 109,997,231 109,997,231 119,978,926 Insurance acquisition cash flows 6,061,721 0 0 6,061,721 10,590,192 0 0 10,590,192 16,651,914

31 December 2024 -45,007,306 -4,805,330 -519,020 -50,331,656 -612,098,395 -21,697,421 -21,256,334 -655,052,150 -705,383,806 Insurance contract assets 0 0 0 0 17,580,116 -170,258 -7,214,873 10,194,985 10,194,985 Insurance contract liabilities -45,007,306 -4,805,330 -519,020 -50,331,656 -629,678,511 -21,527,162 -14,041,461 -665,247,135 -715,578,791

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Closing balance of net insurance contract assets/liabilities as at

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

2024 2023
Remaining coverage Incurred claims Remaining coverage Incurred claims
NON-LIFE AND HEALTH INSURANCE CONTRACTS MEASURED
UNDER THE PREMIUM ALLOCATION APPROACH (PAA)		 Excluding the
loss component		 Loss
component		 Estimates of the
present value
of the future
cash flows		 Risk
adjustment for
non-financial
risk		 Total Excluding the
loss component		 Loss
component		 Estimates of the
present value
of the future
cash flows		 Risk
adjustment for
non-financial
risk		 Total
Opening balance of net insurance contract assets/liabilities -117,534,066 -5,050,600 -518,504,404 -30,672,603 -671,761,673 -90,195,823 -11,124,354 -392,630,134 -35,745,790 -529,696,101
Insurance contract assets 1,650,460 -2,364 -871,031 -12,323 764,741 6,323,803 -11,548 -4,314,241 -674,061 1,323,954
Insurance contract liabilities -119,184,526 -5,048,236 -517,633,373 -30,660,280 -672,526,415 -96,519,627 -11,112,806 -388,315,893 -35,071,729 -531,020,056
Insurance revenue 795,981,861 0 0 0 795,981,861 884,207,681 0 0 0 884,207,681
Insurance service expenses -117,230,778 -3,440,340 -467,505,263 6,806,610 -581,369,771 -113,199,174 6,073,753 -842,911,036 6,419,793 -943,616,664
Incurred claims 0 0 -467,505,263 6,806,610 -460,698,653 0 0 -842,911,036 6,419,793 -836,491,243
Incurred claims (excluding investment components) and other
incurred insurance service expenses		 0 0 -487,088,081 -9,954,726 -497,042,808 0 0 -850,818,544 -18,118,949 -868,937,493
Changes that relate to past service (e.g. changes in fulfilment cash
flows relating to the liability for incurred claims)		 0 0 19,582,818 16,761,336 36,344,154 0 0 7,907,509 24,538,742 32,446,251
Insurance service operating expenses -117,230,778 -3,440,340 0 0 -120,671,117 -113,199,174 6,073,753 0 0 -107,125,421
Amortisation of insurance acquisition cash flows -117,230,778 0 0 0 -117,230,778 -113,199,174 0 0 0 -113,199,174
Changes that relate to future service (i.e. losses on onerous contracts) 0 -3,440,340 0 0 -3,440,340 0 6,073,753 0 0 6,073,753
Net insurance finance income/expenses 0 0 -13,202,362 -682,877 -13,885,238 0 0 -14,206,304 -1,346,607 -15,552,911
Cash flows -702,605,056 0 523,793,709 0 -178,811,347 -798,346,749 0 731,243,071 0 -67,103,678
Premiums received for insurance contracts issued -830,955,384 0 0 0 -830,955,384 -916,978,021 0 0 0 -916,978,021
Claims and other insurance service expenses paid, including investment
components		 0 0 523,793,709 0 523,793,709 0 0 731,243,071 0 731,243,071
Insurance acquisition cash flows 128,350,328 0 0 0 128,350,328 118,631,272 0 0 0 118,631,272
Closing balance of net insurance contract assets/liabilities -141,388,038 -8,490,940 -475,418,320 -24,548,870 -649,846,168 -117,534,066 -5,050,600 -518,504,404 -30,672,603 -671,761,673
Insurance contract assets 640,213 0 -175,578 -12,261 452,373 1,650,460 -2,364 -871,031 -12,323 764,741
Insurance contract liabilities -142,028,251 -8,490,940 -475,242,741 -24,536,609 -650,298,542 -119,184,526 -5,048,236 -517,633,373 -30,660,280 -672,526,415

Accounting report

Statement of management's responsibilities Independent auditor's report

2024 2023
LIFE INSURANCE CONTRACTS MEASURED
UNDER THE VARIABLE FEE APPROACH (VFA)		 Remaining coverage Remaining coverage
Excluding the
loss component		 Loss
component		 Incurred claims Total Excluding the
loss component		 Loss
component		 Incurred claims Total
Opening balance of net insurance contract assets/liabilities -520,859,182 -794,170 -10,192,082 -531,845,434 -450,557,148 -1,565,508 -8,835,951 -460,958,607
Insurance contract assets 0 0 0 0 0 0 0 0
Insurance contract liabilities -520,859,182 -794,170 -10,192,082 -531,845,434 -450,557,148 -1,565,508 -8,835,951 -460,958,607
Insurance revenue 31,770,079 0 0 31,770,079 28,050,173 0 0 28,050,173
Contracts under the modified retrospective approach 7,938,713 0 0 7,938,713 8,395,737 0 0 8,395,737
Contracts under the fair value approach 1,386,249 0 0 1,386,249 976,232 0 0 976,232
Other contracts 22,445,117 0 0 22,445,117 18,678,204 0 0 18,678,204
Insurance service expenses -10,335,987 275,491 -9,781,262 -19,841,758 -9,061,975 771,338 -9,594,070 -17,884,706
Incurred claims 0 63,165 -9,781,262 -9,718,098 0 139,146 -9,594,070 -9,454,923
Incurred claims (excluding investment components) and other incurred insurance
service expenses		 0 63,165 -10,925,018 -10,861,853 0 139,146 -10,197,588 -10,058,442
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the
liability for incurred claims)		 0 0 1,143,755 1,143,755 0 0 603,519 603,519
Insurance service operating expenses -10,335,987 212,326 0 -10,123,661 -9,061,975 632,192 0 -8,429,783
Amortisation of insurance acquisition cash flows -10,335,987 0 0 -10,335,987 -9,061,975 0 0 -9,061,975
Changes that relate to future service (i.e. losses on onerous contracts) 0 212,326 0 212,326 0 632,192 0 632,192
Investment components excluded from insurance revenue and insurance service
expenses		 65,307,948 0 -65,307,948 0 57,619,270 0 -57,619,270 0
Net insurance finance income/expenses -95,414,516 0 -153,663 -95,568,179 -46,417,854 0 -134,223 -46,552,077
Cash flows -114,481,638 0 75,170,546 -39,311,092 -100,491,649 0 65,991,432 -34,500,217
Premiums received for insurance contracts issued -128,289,647 0 0 -128,289,647 -114,614,716 0 0 -114,614,716
Claims and other insurance service expenses paid, including investment components 0 0 75,170,546 75,170,546 0 0 65,991,432 65,991,432
Insurance acquisition cash flows 13,808,009 0 0 13,808,009 14,123,067 0 0 14,123,067
Closing balance of net insurance contract assets/ -644,013,295 -518,680 -10,264,410 -654,796,385 -520,859,182 -794,170 -10,192,082 -531,845,434

Insurance contract assets 0 0 0 0 0 0 0 0 Insurance contract liabilities -644,013,295 -518,680 -10,264,410 -654,796,385 -520,859,182 -794,170 -10,192,082 -531,845,434

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.1.5 The present value of expected cash flows, risk adjustment for non-financial risk and contractual service margin

The present value of expected cash flows, risk adjustment for non-financial risk and contractual service margin of the Triglav Group

in EUR
2024 NON-LIFE and HEALTH
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -31,633,555 -4,739,730 -395,164 0 -16,394,852 -16,790,016 -53,163,301
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -31,633,555 -4,739,730 -395,164 0 -16,394,852 -16,790,016 -53,163,301
Changes 17,895,776 782,428 166,508 0 2,439,327 2,605,835 21,284,039
Changes that relate to future services 10,826,606 -1,708,708 -10,638 0 -8,400,496 -8,411,134 706,764
Changes in estimates that adjust the contractual service margin 929,263 -366,575 -9,750 0 -553,833 -563,583 -895
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 2,190,838 914,498 -888 0 -120,606 -121,494 2,983,842
Effects of contracts initially recognised in the period 7,706,505 -2,256,631 0 0 -7,726,057 -7,726,057 -2,276,183
Changes that relate to current services 3,210,410 2,306,630 177,146 0 10,839,823 11,016,969 16,534,009
Contractual service margin recognised in profit or loss for service provided 0 0 177,146 0 10,839,823 11,016,969 11,016,969
Release of the risk adjustment for non-financial risk 0 2,306,630 0 0 0 0 2,306,630
Experience adjustment 3,210,410 0 0 0 0 0 3,210,410
Changes that relate to past services 3,858,760 184,506 0 0 0 0 4,043,266
Net finance income/expenses from insurance contracts -611,128 -191,958 -7,052 0 -462,720 -469,772 -1,272,858
Cash flows -15,340,679 0 0 0 0 0 -15,340,679
Premiums received -35,602,280 0 0 0 0 0 -35,602,280
Claims and other insurance service expenses paid, including investment component 13,415,886 0 0 0 0 0 13,415,886
Insurance acquisition cash flows 6,845,715 0 0 0 0 0 6,845,715
Effect of exchange rate differences 0 0 0 0 0 0 0
Final balance of net insurance contract assets/liabilities -29,689,583 -4,149,261 -235,707 0 -14,418,246 -14,653,953 -48,492,797
Insurance contract assets 114,826 -4,628 0 0 -50,452 -50,452 59,746
Insurance contract liabilities -29,804,409 -4,144,633 -235,707 0 -14,367,794 -14,603,501 -48,552,543

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2024 LIFE
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -607,460,781 -20,372,525 -22,829,363 -10,077,106 -88,833,485 -121,739,954 749,573,260
Insurance contract assets 91,500,120 -10,966,798 -10,278,596 -394 -60,020,173 -70,299,163 10,234,159
Insurance contract liabilities -698,960,901 -9,405,727 -12,550,767 -10,076,712 -28,813,312 -51,440,791 759,807,419
Changes 61,737,988 -483,944 2,138,109 -20,798,527 -22,310,393 -40,970,811 20,283,233
Changes that relate to future services 74,590,105 -3,051,502 -2,460,504 -25,269,676 -37,307,053 -65,037,233 6,501,370
Changes in estimates that adjust the contractual service margin 45,625,238 388,543 -2,460,504 -25,121,810 -12,907,265 -40,489,579 5,524,202
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 5,213,007 276,336 0 -147,866 -507,274 -655,140 4,834,203
Effects of contracts initially recognised in the period 23,751,860 -3,716,381 0 0 -23,892,514 -23,892,514 -3,857,035
Changes that relate to current services -11,741,229 725,050 4,598,613 4,471,149 14,996,660 24,066,422 13,050,243
Contractual service margin recognised in profit or loss for service provided 0 0 4,598,613 4,471,149 14,996,660 24,066,422 24,066,422
Release of the risk adjustment for non-financial risk 0 725,050 0 0 0 0 725,050
Experience adjustment -11,741,229 0 0 0 0 0 -11,741,229
Changes that relate to past services -1,110,888 1,842,508 0 0 0 0 731,620
Net finance income/expenses from insurance contracts -25,574,911 -998,965 -833,943 -7,793 -1,680,347 -2,522,083 -29,095,959
Cash flows 38,148,521 0 0 0 0 0 38,148,521
Premiums received -120,594,645 0 0 0 0 0 120,594,645
Claims and other insurance service expenses paid, including investment component 138,055,411 0 0 0 0 0 138,055,411
Insurance acquisition cash flows 20,687,755 0 0 0 0 0 20,687,755
Effect of exchange rate differences -22,630 -24 0 -377 -2,678 -3,055 -25,709
Final balance of net insurance contract assets/liabilities -533,171,813 -21,855,458 -21,525,197 -30,883,803 -112,826,903 -165,235,903 -720,263,174
Insurance contract assets 115,287,435 -13,003,909 -10,240,849 -1,432 -78,089,970 -88,332,251 13,951,275
Insurance contract liabilities -648,459,248 -8,851,549 -11,284,348 -30,882,371 -34,736,933 -76,903,652 -734,214,449

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2023 NON-LIFE and HEALTH
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -44,500,517 -6,728,537 -617,898 0 -15,680,021 -16,297,919 -67,526,973
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -44,500,517 -6,728,537 -617,898 0 -15,680,021 -16,297,919 -67,526,973
Changes 30,557,602 2,429,593 232,450 0 -485,954 -253,504 32,733,691
Changes that relate to future services 9,181,292 -835,564 -86,341 0 -10,531,630 -10,617,971 -2,272,243
Changes in estimates that adjust the contractual service margin 2,000,278 1,927,976 -86,341 0 -3,878,943 -3,965,284 -37,030
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 83,152 517,611 0 0 -282,616 -282,616 318,147
Effects of contracts initially recognised in the period 7,097,862 -3,281,151 0 0 -6,370,071 -6,370,071 -2,553,360
Changes that relate to current services 15,316,315 3,029,985 318,791 0 10,045,676 10,364,467 28,710,767
Contractual service margin recognised in profit or loss for service provided 0 0 318,791 0 10,045,676 10,364,467 10,364,467
Release of the risk adjustment for non-financial risk 0 3,029,985 0 0 0 0 3,029,985
Experience adjustment 15,316,315 0 0 0 0 0 15,316,315
Changes that relate to past services 6,059,995 235,172 0 0 0 0 6,295,167
Net finance income/expenses from insurance contracts -1,207,707 -440,784 -9,715 0 -228,876 -238,591 -1,887,082
Cash flows -16,482,935 0 0 0 0 0 -16,482,935
Premiums received -33,641,897 0 0 0 0 0 -33,641,897
Claims and other insurance service expenses paid, including investment component 10,410,518 0 0 0 0 0 10,410,518
Insurance acquisition cash flows 6,748,444 0 0 0 0 0 6,748,444
Effect of exchange rate differences 0 0 0 0 0 0 0
Final balance of net insurance contract assets/liabilities -31,633,557 -4,739,729 -395,164 0 -16,394,852 -16,790,016 -53,163,302
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -31,633,557 -4,739,729 -395,164 0 -16,394,852 -16,790,016 -53,163,302

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2023 LIFE
Risk adjustment for
non-financial risk
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Estimates of the
present value of the
future cash flows		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -635,909,619 -17,062,150 -25,301,114 -9,104,491 -65,822,988 -100,228,593 753,200,362
Insurance contract assets 61,419,383 -6,668,450 -9,866,325 -9,167 -38,717,424 -48,592,916 6,158,017
Insurance contract liabilities -697,329,002 -10,393,700 -15,434,789 -9,095,324 -27,105,564 -51,635,677 759,358,379
Changes 40,780,358 -2,055,780 2,706,854 -102,579 -26,585,229 -23,980,954 14,743,624
Changes that relate to future services 45,920,241 -4,049,640 -2,334,936 -1,871,676 -38,450,714 -42,657,326 -786,725
Changes in estimates that adjust the contractual service margin 22,025,206 -2,295,806 -2,334,936 -1,697,111 -20,023,893 -24,055,940 -4,326,540
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 6,309,605 958,980 0 -174,565 -257,357 -431,922 6,836,663
Effects of contracts initially recognised in the period 17,585,430 -2,712,814 0 0 -18,169,464 -18,169,464 -3,296,848
Changes that relate to current services -3,391,765 329,328 5,041,790 1,769,097 11,865,485 18,676,372 15,613,935
Contractual service margin recognised in profit or loss for service provided 0 0 5,041,790 1,769,097 11,865,485 18,676,372 18,676,372
Release of the risk adjustment for non-financial risk 0 329,328 0 0 0 0 329,328
Experience adjustment -3,391,765 0 0 0 0 0 -3,391,765
Changes that relate to past services -1,748,118 1,664,532 0 0 0 0 -83,586
Net finance income/expenses from insurance contracts -43,076,771 -1,255,125 -235,103 -870,190 3,573,251 2,467,958 -41,863,938
Cash flows 30,735,169 0 0 0 0 0 30,735,169
Premiums received -118,856,139 0 0 0 0 0 118,856,139
Claims and other insurance service expenses paid, including investment component 131,135,040 0 0 0 0 0 131,135,040
Insurance acquisition cash flows 18,456,268 0 0 0 0 0 18,456,268
Effect of exchange rate differences 10,082 530 0 154 1,481 1,635 12,247
Final balance of net insurance contract assets/liabilities -607,460,781 -20,372,525 -22,829,363 -10,077,106 -88,833,485 -121,739,954 -749,573,260
Insurance contract assets 91,500,120 -10,966,798 -10,278,596 -394 -60,020,173 -70,299,163 10,234,159
Insurance contract liabilities -698,960,901 -9,405,727 -12,550,767 -10,076,712 -28,813,312 -51,440,791 -759,807,419

Accounting report

Statement of management's responsibilities Independent auditor's report

3.7 Notes to other significant items in

in EUR
2024 LIFE
CONTRACTS MEASURED UNDER THE VARIABLE FEE APPROACH (VFA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -443,299,649 -12,915,268 -22,527,400 -907,360 -76,482,155 -99,916,915 -556,131,832
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -443,299,649 -12,915,268 -22,527,400 -907,360 -76,482,155 -99,916,915 -556,131,832
Changes 17,486,181 1,417,609 3,321,703 -905,553 -9,428,182 -7,012,032 11,891,758
Changes that relate to future services 23,713,353 -506,183 -136,267 -1,419,573 -18,024,230 -19,580,070 3,627,100
Changes in estimates that adjust the contractual service margin 2,180,469 1,579,936 -136,267 -272,244 -782,568 -1,191,079 2,569,326
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 2,194,868 58,905 0 -1,147,329 -34,378 -1,181,707 1,072,066
Effects of contracts initially recognised in the period 19,338,016 -2,145,024 0 0 -17,207,284 -17,207,284 -14,292
Changes that relate to current services -6,638,926 1,117,045 3,457,970 514,020 8,596,048 12,568,038 7,046,157
Contractual service margin recognised in profit or loss for service provided 0 0 3,457,970 514,020 8,596,048 12,568,038 12,568,038
Release of the risk adjustment for non-financial risk 0 1,117,045 0 0 0 0 1,117,045
Experience adjustment -6,638,926 0 0 0 0 0 -6,638,926
Changes that relate to past services 411,754 806,747 0 0 0 0 1,218,501
Net finance income/expenses from insurance contracts -97,846,028 -24,064 0 0 0 0 -97,870,092
Cash flows -42,526,508 0 0 0 0 0 -42,526,508
Premiums received -134,231,309 0 0 0 0 0 -134,231,309
Claims and other insurance service expenses paid, including investment component 77,279,168 0 0 0 0 0 77,279,168
Insurance acquisition cash flows 14,425,633 0 0 0 0 0 14,425,633
Effect of exchange rate differences 550 46 0 0 83 84 680
Final balance of net insurance contract assets/liabilities -566,185,454 -11,521,677 -19,205,697 -1,812,912 -85,910,254 -106,928,863 -684,635,994
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -566,185,454 -11,521,677 -19,205,697 -1,812,912 -85,910,254 -106,928,863 -684,635,994

Accounting report

Statement of management's responsibilities Independent auditor's report

3.7 Notes to other significant items in

in EUR
2023 LIFE
CONTRACTS MEASURED UNDER THE VARIABLE FEE APPROACH (VFA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -401,236,184 -9,036,338 -19,001,306 -1,416 -50,902,051 -69,904,773 -480,177,295
Insurance contract assets 38,686 -15,617 0 0 -19,239 -19,239 3,830
Insurance contract liabilities -401,274,870 -9,020,721 -19,001,306 -1,416 -50,882,812 -69,885,534 -480,181,125
Changes 44,714,118 -3,855,389 -3,526,094 -905,942 -25,580,284 -30,012,320 10,846,409
Changes that relate to future services 50,391,811 -5,136,567 -7,051,402 -1,114,642 -32,599,793 -40,765,837 4,489,407
Changes in estimates that adjust the contractual service margin 28,270,122 -3,192,115 -7,051,402 -1,112,844 -14,790,655 -22,954,901 2,123,106
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 2,604,505 -111,006 0 -1,798 -2,885 -4,683 2,488,816
Effects of contracts initially recognised in the period 19,517,184 -1,833,446 0 0 -17,806,253 -17,806,253 -122,515
Changes that relate to current services -5,607,635 543,145 3,525,308 208,700 7,019,509 10,753,517 5,689,027
Contractual service margin recognised in profit or loss for service provided 0 0 3,525,308 208,700 7,019,509 10,753,517 10,753,517
Release of the risk adjustment for non-financial risk 0 543,145 0 0 0 0 543,145
Experience adjustment -5,607,635 0 0 0 0 0 -5,607,635
Changes that relate to past services -70,058 738,033 0 0 0 0 667,975
Net finance income/expenses from insurance contracts -50,470,665 -23,491 0 0 0 0 -50,494,156
Cash flows -36,309,454 0 0 0 0 0 -36,309,454
Premiums received -119,628,972 0 0 0 0 0 -119,628,972
Claims and other insurance service expenses paid, including investment component 68,359,496 0 0 0 0 0 68,359,496
Insurance acquisition cash flows 14,960,022 0 0 0 0 0 14,960,022
Effect of exchange rate differences 2,536 -50 0 0 180 178 2,664
Final balance of net insurance contract assets/liabilities -443,299,649 -12,915,268 -22,527,400 -907,360 -76,482,155 -99,916,915 -556,131,832
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -443,299,649 -12,915,268 -22,527,400 -907,360 -76,482,155 -99,916,915 -556,131,832

259

Business report The present value of expected cash flows, risk adjustment for non-financial risk and contractual service margin of Zavarovalnica Triglav

Accounting report

Statement of management's responsibilities Independent auditor's report

3.3 Investments in subsidiaries, associates and joint ventures

Appendix

2024 NON-LIFE and HEALTH
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -29,878,552 -4,628,235 -395,164 0 -15,429,705 -15,824,868 -50,331,656
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -29,878,552 -4,628,235 -395,164 0 -15,429,705 -15,824,868 -50,331,656
Changes 17,479,041 700,732 166,509 0 2,492,806 2,659,315 20,839,088
Changes that relate to future services 10,426,707 -1,773,133 -10,638 0 -7,975,772 -7,986,410 667,164
Changes in estimates that adjust the contractual service margin 564,006 -426,043 -9,750 0 -129,108 -138,858 -894
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 2,156,195 909,540 -888 0 -120,606 -121,494 2,944,241
Effects of contracts initially recognised in the period 7,706,506 -2,256,631 0 0 -7,726,057 -7,726,057 -2,276,183
Changes that relate to current services 3,103,309 2,286,472 177,146 0 10,468,578 10,645,725 16,035,506
Contractual service margin recognised in profit or loss for service provided 0 0 177,146 0 10,468,578 10,645,725 10,645,725
Release of the risk adjustment for non-financial risk 0 2,286,472 0 0 0 0 2,286,472
Experience adjustment 3,103,309 0 0 0 0 0 3,103,309
Changes that relate to past services 3,949,025 187,394 0 0 0 0 4,136,419
Net finance income/expenses from insurance contracts -547,838 -186,678 -7,052 0 -460,212 -467,264 -1,201,779
Cash flows -15,618,672 0 0 0 0 0 -15,618,672
Premiums received -35,602,280 0 0 0 0 0 -35,602,280
Claims and other insurance service expenses paid, including investment component 13,138,865 0 0 0 0 0 13,138,865
Insurance acquisition cash flows 6,844,743 0 0 0 0 0 6,844,743
Final balance of net insurance contract assets/liabilities -28,566,021 -4,114,181 -235,707 0 -13,397,110 -13,632,817 -46,313,019

Insurance contract assets 114,826 -4,628 0 0 -50,452 -50,452 59,746 Insurance contract liabilities -28,680,847 -4,109,553 -235,707 0 -13,346,658 -13,582,366 -46,372,766

Accounting report

Statement of management's responsibilities Independent auditor's report

3.7 Notes to other significant items in

in EUR
2024 LIFE
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -525,379,261 -18,779,222 -22,829,363 -8,909,557 -79,154,746 -110,893,667 655,052,150
Insurance contract assets 91,393,420 -10,955,818 -10,278,596 -22 -59,963,999 -70,242,617 10,194,985
Insurance contract liabilities -616,772,681 -7,823,404 -12,550,767 -8,909,536 -19,190,747 -40,651,050 665,247,135
Changes 56,184,877 602,898 2,138,109 -20,861,529 -20,092,285 -38,815,705 17,972,070
Changes that relate to future services 67,647,479 -1,585,713 -2,460,504 -25,045,753 -31,464,336 -58,970,594 7,091,172
Changes in estimates that adjust the contractual service margin 45,574,023 1,219,749 -2,460,504 -24,937,635 -14,485,440 -41,883,579 4,910,193
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 3,029,677 204,664 0 -108,119 -84,195 -192,314 3,042,026
Effects of contracts initially recognised in the period 19,043,779 -3,010,126 0 0 -16,894,701 -16,894,701 -861,048
Changes that relate to current services -12,177,513 421,928 4,598,613 4,184,224 11,372,051 20,154,889 8,399,304
Contractual service margin recognised in profit or loss for service provided 0 0 4,598,613 4,184,224 11,372,051 20,154,889 20,154,889
Release of the risk adjustment for non-financial risk 0 421,928 0 0 0 0 421,928
Experience adjustment -12,177,513 0 0 0 0 0 -12,177,513
Changes that relate to past services 714,911 1,766,683 0 0 0 0 2,481,594
Net finance income/expenses from insurance contracts -22,407,320 -923,725 -833,943 -6,697 -1,324,890 -2,165,530 -25,496,575
Cash flows 45,350,676 0 0 0 0 0 45,350,676
Premiums received -79,616,296 0 0 0 0 0 -79,616,296
Claims and other insurance service expenses paid, including investment component 113,880,725 0 0 0 0 0 113,880,725
Insurance acquisition cash flows 11,086,246 0 0 0 0 0 11,086,246
Final balance of net insurance contract assets/liabilities -446,251,029 -19,100,049 -21,525,197 -29,777,784 -100,571,921 -151,874,902 -617,225,979
Insurance contract assets 115,086,654 -12,985,053 -10,240,849 -78 -77,940,647 -88,181,573 13,920,027
Insurance contract liabilities -561,337,683 -6,114,996 -11,284,348 -29,777,706 -22,631,274 -63,693,328 -631,146,007

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2023 NON-LIFE and HEALTH
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA)
Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -42,197,992 -6,581,672 -617,898 0 -14,835,720 -15,453,618 -64,233,282
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -42,197,992 -6,581,672 -617,898 0 -14,835,720 -15,453,618 -64,233,282
Changes 30,304,332 2,385,546 232,449 0 -369,417 -136,968 32,552,910
Changes that relate to future services 9,053,651 -851,785 -86,341 0 -10,109,404 -10,195,745 -1,993,879
Changes in estimates that adjust the contractual service margin 2,031,212 1,895,732 -86,341 0 -3,844,813 -3,931,154 -4,211
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 83,152 517,611 0 0 -37,073 -37,073 563,690
Effects of contracts initially recognised in the period 6,939,287 -3,265,128 0 0 -6,227,518 -6,227,518 -2,553,359
Changes that relate to current services 15,159,445 3,001,331 318,791 0 9,739,987 10,058,777 28,219,553
Contractual service margin recognised in profit or loss for service provided 0 0 318,791 0 9,739,987 10,058,777 10,058,777
Release of the risk adjustment for non-financial risk 0 3,001,331 0 0 0 0 3,001,331
Experience adjustment 15,159,445 0 0 0 0 0 15,159,445
Changes that relate to past services 6,091,236 236,001 0 0 0 0 6,327,236
Net finance income/expenses from insurance contracts -1,076,645 -432,109 -9,715 0 -224,567 -234,283 -1,743,036
Cash flows -16,908,248 0 0 0 0 0 -16,908,248
Premiums received -32,951,664 0 0 0 0 0 -32,951,664
Claims and other insurance service expenses paid, including investment component 9,981,695 0 0 0 0 0 9,981,695
Insurance acquisition cash flows 6,061,721 0 0 0 0 0 6,061,721
Final balance of net insurance contract assets/liabilities -29,878,552 -4,628,235 -395,164 0 -15,429,705 -15,824,868 -50,331,656
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -29,878,552 -4,628,235 -395,164 0 -15,429,705 -15,824,868 -50,331,656

Accounting report

Statement of management's responsibilities Independent auditor's report

3.7 Notes to other significant items in

Search in report

in EUR
2023 LIFE
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA)
Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -562,136,636 -15,674,852 -25,301,114 -8,746,590 -57,911,248 -91,958,952 669,770,440
Insurance contract assets 60,989,285 -6,625,874 -9,866,325 -35 -38,425,524 -48,291,885 6,071,526
Insurance contract liabilities -623,125,920 -9,048,978 -15,434,789 -8,746,555 -19,485,723 -43,667,068 675,841,966
Changes 36,884,771 -1,924,166 2,706,854 531,348 -24,395,965 -21,157,763 13,802,842
Changes that relate to future services 42,255,273 -3,574,354 -2,334,936 -922,692 -33,310,487 -36,568,116 2,112,803
Changes in estimates that adjust the contractual service margin 23,674,314 -2,325,600 -2,334,936 -795,779 -21,352,858 -24,483,574 -3,134,860
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 5,266,670 1,083,676 0 -126,913 -16,882 -143,795 6,206,551
Effects of contracts initially recognised in the period 13,314,290 -2,332,430 0 0 -11,940,747 -11,940,747 -958,888
Changes that relate to current services -5,160,943 72,889 5,041,790 1,454,041 8,914,523 15,410,353 10,322,299
Contractual service margin recognised in profit or loss for service provided 0 0 5,041,790 1,454,041 8,914,523 15,410,353 15,410,353
Release of the risk adjustment for non-financial risk 0 72,889 0 0 0 0 72,889
Experience adjustment -5,160,943 0 0 0 0 0 -5,160,943
Changes that relate to past services -209,559 1,577,299 0 0 0 0 1,367,740
Net finance income/expenses from insurance contracts -37,540,999 -1,180,205 -235,102 -694,315 3,152,466 2,223,048 -36,498,155
Cash flows 37,413,603 0 0 0 0 0 37,413,603
Premiums received -83,173,821 0 0 0 0 0 -83,173,821
Claims and other insurance service expenses paid, including investment component 109,997,231 0 0 0 0 0 109,997,231
Insurance acquisition cash flows 10,590,192 0 0 0 0 0 10,590,192
Final balance of net insurance contract assets/liabilities -525,379,261 -18,779,222 -22,829,363 -8,909,557 -79,154,746 -110,893,667 -655,052,150
Insurance contract assets 91,393,420 -10,955,818 -10,278,596 -22 -59,963,999 -70,242,617 10,194,985
Insurance contract liabilities -616,772,681 -7,823,404 -12,550,767 -8,909,536 -19,190,747 -40,651,050 -665,247,135

Accounting report

Statement of management's responsibilities Independent auditor's report

3.3 Investments in subsidiaries, associates and joint ventures

3.7 Notes to other significant items in

in EUR
2024 LIFE
CONTRACTS MEASURED UNDER THE VARIABLE FEE APPROACH (VFA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -420,738,303 -12,358,498 -22,527,400 -831,453 -75,389,780 -98,748,633 -531,845,434
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -420,738,303 -12,358,498 -22,527,400 -831,453 -75,389,780 -98,748,633 -531,845,434
Changes 17,709,752 1,401,313 3,321,703 -927,334 -9,577,114 -7,182,745 11,928,320
Changes that relate to future services 23,760,806 -439,508 -136,267 -1,432,498 -18,056,453 -19,625,217 3,696,081
Changes in estimates that adjust the contractual service margin 3,068,362 1,568,156 -136,267 -285,169 -1,453,644 -1,875,080 2,761,439
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 2,053,841 49,328 0 -1,147,329 -14,135 -1,161,464 941,705
Effects of contracts initially recognised in the period 18,638,602 -2,056,992 0 0 -16,588,673 -16,588,673 -7,063
Changes that relate to current services -6,399,277 1,045,290 3,457,970 505,164 8,479,338 12,442,472 7,088,484
Contractual service margin recognised in profit or loss for service provided 0 0 3,457,970 505,164 8,479,338 12,442,472 12,442,472
Release of the risk adjustment for non-financial risk 0 1,045,290 0 0 0 0 1,045,290
Experience adjustment -6,399,277 0 0 0 0 0 -6,399,277
Changes that relate to past services 348,224 795,531 0 0 0 0 1,143,755
Net finance income/expenses from insurance contracts -95,544,351 -23,828 0 0 0 0 -95,568,179
Cash flows -39,311,092 0 0 0 0 0 -39,311,092
Premiums received -128,289,647 0 0 0 0 0 -128,289,647
Claims and other insurance service expenses paid, including investment component 75,170,546 0 0 0 0 0 75,170,546
Insurance acquisition cash flows 13,808,009 0 0 0 0 0 13,808,009
Final balance of net insurance contract assets/liabilities -537,883,993 -10,981,013 -19,205,697 -1,758,786 -84,966,895 -105,931,378 -654,796,385
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -537,883,993 -10,981,013 -19,205,697 -1,758,786 -84,966,895 -105,931,378 -654,796,385

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2023 LIFE
CONTRACTS MEASURED UNDER THE VARIABLE FEE APPROACH (VFA) Estimates of the
present value of the
future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective
approach		 Contracts under the
fair value approach		 Other contracts Total Contractual
service margin		 TOTAL
Opening balance of net insurance contract assets/liabilities -384,147,781 -8,485,625 -19,001,306 -144 -49,323,751 -68,325,201 -460,958,607
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -384,147,781 -8,485,625 -19,001,306 -144 -49,323,751 -68,325,201 -460,958,607
Changes 44,438,791 -3,849,892 -3,526,094 -831,308 -26,066,030 -30,423,432 10,165,467
Changes that relate to future services 50,083,643 -5,045,170 -7,051,402 -1,027,817 -32,947,141 -41,026,360 4,012,113
Changes in estimates that adjust the contractual service margin 31,820,827 -3,197,271 -7,051,402 -1,027,817 -18,428,240 -26,507,459 2,116,096
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of
onerous contracts and reversals of such losses		 2,210,337 -152,587 0 0 -82 -82 2,057,668
Effects of contracts initially recognised in the period 16,052,480 -1,695,312 0 0 -14,518,820 -14,518,820 -161,652
Changes that relate to current services -5,528,913 475,820 3,525,308 196,509 6,881,111 10,602,928 5,549,835
Contractual service margin recognised in profit or loss for service provided 0 0 3,525,308 196,509 6,881,111 10,602,928 10,602,928
Release of the risk adjustment for non-financial risk 0 475,820 0 0 0 0 475,820
Experience adjustment -5,528,913 0 0 0 0 0 -5,528,913
Changes that relate to past services -115,939 719,457 0 0 0 0 603,519
Net finance income/expenses from insurance contracts -46,529,096 -22,981 0 0 0 0 -46,552,077
Cash flows -34,500,217 0 0 0 0 0 -34,500,217
Premiums received -114,614,716 0 0 0 0 0 -114,614,716
Claims and other insurance service expenses paid, including investment component 65,991,432 0 0 0 0 0 65,991,432
Insurance acquisition cash flows 14,123,067 0 0 0 0 0 14,123,067
Final balance of net insurance contract assets/liabilities -420,738,303 -12,358,498 -22,527,400 -831,453 -75,389,780 -98,748,633 -531,845,434
Insurance contract assets 0 0 0 0 0 0 0
Insurance contract liabilities -420,738,303 -12,358,498 -22,527,400 -831,453 -75,389,780 -98,748,633 -531,845,434

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.1.6 The effects of insurance contracts for which initial recognition was carried out in the period and which are not measured according to the premium allocation approach (PAA)

The effects of the Triglav Group's insurance contracts for which initial recognition was carried out in 2024 and which are not measured according to the premium allocation approach

in EUR
NON-LIFE LIFE
2024 General model (BBA) General model (BBA) Variable fee aproach (VFA)
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD Profitable contracts issued Onerous contracts issued Profitable contracts issued Onerous contracts issued Profitable contracts issued Onerous contracts issued
Estimates of the present value of future cash outflows -15,034,476 -10,848,076 -67,180,859 -20,852,953 -131,495,222 -424,971
Incurred claims and other incurred insurance service expenses -11,571,927 -7,755,527 -51,128,383 -17,227,806 -117,917,706 -355,052
Insurance acquisition cash flows -3,462,549 -3,092,549 -16,052,476 -3,625,147 -13,577,516 -69,919
Estimates of the present value of future cash inflows 24,143,422 9,445,635 94,439,422 17,343,897 150,842,560 415,207
Risk adjustment for non-financial risk -1,382,889 -873,742 -3,368,120 -348,096 -2,140,460 -4,528
Contractual service margin -7,726,057 0 -23,890,442 0 -17,206,878 0
Total liability on initial recognition 0 -2,276,183 0 -3,857,152 0 -14,292

The effects of the Triglav Group's insurance contracts for which initial recognition was carried out in 2023 and which are not measured according to the premium allocation approach

in EUR
NON-LIFE LIFE
2023 General model (BBA) General model (BBA) Variable fee aproach (VFA)
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD Profitable contracts issued Onerous contracts issued Profitable contracts issued Onerous contracts issued Profitable contracts issued Onerous contracts issued
Estimates of the present value of future cash outflows -12,633,927 -9,938,777 -58,741,939 -17,438,460 -101,873,430 -13,484,604
Incurred claims and other incurred insurance service expenses -9,872,698 -7,194,689 -43,009,886 -14,295,150 -89,260,554 -11,536,083
Insurance acquisition cash flows -2,761,229 -2,744,088 -15,732,053 -3,143,310 -12,612,876 -1,948,521
Estimates of the present value of future cash inflows 20,980,059 8,690,507 79,352,661 14,407,609 121,440,141 13,429,648
Risk adjustment for non-financial risk -1,976,062 -1,305,089 -2,446,831 -265,823 -1,765,745 -67,626
Contractual service margin -6,370,071 0 -18,163,622 0 -17,800,965 0
Total liability on initial recognition 0 -2,553,359 269 -3,296,674 0 -122,582

265

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
NON-LIFE and HEALTH LIFE
2024 General model (BBA) General model (BBA) Variable fee aproach (VFA)
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD Profitable contracts issued Onerous contracts issued Profitable contracts issued
Onerous contracts issued		 Profitable contracts issued Onerous contracts issued
Estimates of the present value of future cash outflows -15,034,476 -10,848,076 -44,010,862 -6,239,065 -124,672,890 -220,206
Incurred claims and other incurred insurance service expenses -11,571,927 -7,755,527 -33,340,548 -6,069,848 -111,822,153 -202,547
Insurance acquisition cash flows -3,462,549 -3,092,549 -10,670,314 -169,217 -12,850,736 -17,659
Estimates of the present value of future cash inflows 24,143,422 9,445,635 63,770,613 5,523,094 143,315,904 215,794
Risk adjustment for non-financial risk -1,382,889 -873,742 -2,865,050 -145,077 -2,054,341 -2,651
Contractual service margin -7,726,057 0 -16,894,701 0 -16,588,673 0
Total liability on initial recognition 0 -2,276,183 0 -861,048 0 -7,063

The effects of the Zavarovalnica Triglav insurance contracts for which initial recognition was carried out in 2023 and which are not measured according to the premium allocation approach

in EUR

NON-LIFE and HEALTH
General model (BBA)		 LIFE
2023 General model (BBA) Variable fee aproach (VFA)
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD Profitable contracts issued
Onerous contracts issued		 Profitable contracts issued Onerous contracts issued Profitable contracts issued Onerous contracts issued
Estimates of the present value of future cash outflows -12.107.848 -9.938.777 -39.894.992 -6.515.898 -100.629.028 -13.402.262
Incurred claims and other incurred insurance service expenses -9.611.266 -7.194.689 -28.763.909 -6.325.862 -88.751.160 -11.459.653
Insurance acquisition cash flows -2.496.582 -2.744.088 -11.131.083 -190.036 -11.877.868 -1.942.609
Estimates of the present value of future cash inflows 20.295.406 8.690.506 54.012.004 5.713.175 116.775.973 13.307.797
Risk adjustment for non-financial risk -1.960.040 -1.305.088 -2.176.265 -156.165 -1.628.126 -67.186
Contractual service margin -6.227.518 0 -11.940.747 0 -14.518.820 0
Total liability on initial recognition 0 -2.553.359 0 -958.888 0 -161.652

The effects of the Zavarovalnica Triglav insurance contracts for which initial recognition was carried out in 2024 and which are not measured according to the premium allocation approach

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.1.7 Presentation of the expected release of the contractual service margin

Presentation of the expected release of the contractual service margin of the Triglav Group

CONTRACTUAL SERVICE MARGIN AS AT 31 DEC 2024 < 1 year 1–2 years 2–3 years 3–4 years 4–5 years 5–10 years > 10 years TOTAL
Non-life insurance contracts 7,018,172 2,785,444 1,741,691 1,099,965 647,331 1,124,863 236,488 14,653,954
General model (BBA) 7,018,172 2,785,444 1,741,691 1,099,965 647,331 1,124,863 236,488 14,653,954
Life insurance contracts 33,584,624 29,704,164 26,366,956 23,347,442 20,659,141 72,793,090 65,709,355 272,164,772
General model (BBA) 21,263,383 18,185,883 15,691,580 13,579,208 11,792,565 41,469,380 43,253,909 165,235,908
Variable fee approach (VFA) 12,321,241 11,518,281 10,675,376 9,768,234 8,866,576 31,323,710 22,455,446 106,928,864
286,818,726
TOTAL 40,602,796 32,489,608 28,108,647 24,447,407 21,306,472 73,917,953 65,945,843
NET INSURANCE CONTRACT ASSETS AS AT 31 DEC 2023 < 1 year 1–2 years 2–3 years 3–4 years 4–5 years 5–10 years > 10 years in EUR
TOTAL
Non-life insurance contracts 7,653,758 3,998,900 1,755,030 1,129,613 714,900 1,260,773 277,040 16,790,014
General model (BBA) 7,653,758 3,998,900 1,755,030 1,129,613 714,900 1,260,773 277,040 16,790,014
Life insurance contracts 27,364,157 24,260,172 21,646,548 19,223,121 17,023,525 60,101,320 52,038,026 221,656,869
General model (BBA) 16,280,534 13,841,152 11,914,103 10,247,785 8,819,200 30,148,660 30,488,520 121,739,954
Variable fee approach (VFA) 11,083,623 10,419,020 9,732,445 8,975,336 8,204,325 29,952,660 21,549,506 99,916,915

Presentation of the expected release of the contractual service margin of Zavarovalnica Triglav

in EUR
NET INSURANCE CONTRACT ASSETS AS AT 31 DEC 2024 < 1 year 1–2 years 2–3 years 3–4 years 4–5 years 5–10 years > 10 years TOTAL
Non-life insurance contracts 6,711,454 2,537,549 1,551,742 967,713 568,092 1,059,779 236,488 13,632,817
General model (BBA) 6,711,454 2,537,549 1,551,742 967,713 568,092 1,059,779 236,488 13,632,817
Life insurance contracts 30,307,444 27,310,871 24,479,092 21,889,654 19,558,556 70,047,460 64,213,202 257,806,280
General model (BBA) 18,127,397 15,917,787 13,909,087 12,203,695 10,760,913 38,966,880 41,989,142 151,874,902
Variable fee approach (VFA) 12,180,046 11,393,084 10,570,005 9,685,959 8,797,644 31,080,580 22,224,059 105,931,378
TOTAL 37,018,898 29,848,420 26,030,835 22,857,367 20,126,648 71,107,240 64,449,690 271,439,097
in EUR
NET INSURANCE CONTRACT ASSETS AS AT 31 DEC 2023 < 1 year 1–2 years 2–3 years 3–4 years 4–5 years 5–10 years > 10 years TOTAL
Non-life insurance contracts 7,395,834 3,782,894 1,581,407 997,534 624,208 1,165,997 276,996 15,824,868
General model (BBA) 7,395,834 3,782,894 1,581,407 997,534 624,208 1,165,997 276,996 15,824,868
Life insurance contracts 24,704,932 22,366,323 20,132,769 18,017,906 16,083,549 57,770,006 50,566,815 209,642,300
General model (BBA) 13,760,903 12,064,696 10,504,904 9,136,112 7,963,361 28,129,189 29,334,501 110,893,667
Variable fee approach (VFA) 10,944,029 10,301,626 9,627,865 8,881,794 8,120,187 29,640,817 21,232,314 98,748,633
TOTAL 32,100,766 26,149,216 21,714,176 19,015,439 16,707,757 58,936,003 50,843,811 225,467,168

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3.1.8 Claims development

Non-life claims development of the Triglav Group

Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL
Cumulative estimate of gross claims
– at the end of year of occurrence -58,455,843 -35,833,867 -43,927,705 -44,507,608 -172,365,426 -141,579,965 -633,298,667 -836,518,120 1,159,955,582 -785,003,641
– 1 year after year of occurrence -53,589,151 -37,924,601 -44,534,436 -45,004,584 -166,242,930 -259,800,148 -669,264,052 -846,753,453 1,157,356,670 0
– 2 years after year of occurrence -52,327,914 -37,415,490 -44,981,096 -45,409,491 -220,593,059 -245,167,692 -646,244,105 -854,142,948 0 0
– 3 years after year of occurrence -52,095,752 -37,811,796 -45,365,942 -75,319,185 -211,864,832 -242,334,838 -632,702,226 0 0 0
– 4 years after year of occurrence -51,893,842 -38,477,763 -65,606,209 -71,974,859 -211,642,574 -242,872,352 0 0 0 0
– 5 years after year of occurrence -53,332,768 -145,359,562 -64,155,917 -63,593,179 -205,401,721 0 0 0 0 0
– 6 years after year of occurrence -54,055,766 -136,898,686 -67,116,490 -62,172,678 0 0 0 0 0 0
– 7 years after year of occurrence -52,550,683 -129,421,917 -65,625,422 0 0 0 0 0 0 0
– 8 years after year of occurrence -52,244,719 -127,516,120 0 0 0 0 0 0 0 0
– 9 years after year of occurrence -51,973,045 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -47,267,048 -49,228,651 -51,248,896 -53,193,572 -173,358,460 -195,845,221 -572,937,342 -765,614,855 -967,606,887 -412,574,803
Gross liabilities -4,705,997 -78,287,469 -14,376,526 -8,979,106 -32,043,261 -47,027,131 -59,764,884 -88,528,093 -189,749,783 -372,428,838 -895.891.088
-3.875.591
Gross liabilities of previous years
Discounting effect
Net liabilities for incurred claims included in the financial statements
Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Cumulative estimate of net claims
– at the end of year of occurrence -58,455,843 -34,981,865 -43,664,638 -44,332,108 -157,796,029 -117,217,768 -554,551,601 -753,457,584 -900,835,423 -669,544,060
– 1 year after year of occurrence -52,156,273 -35,674,949 -44,147,550 -44,851,030 -151,047,465 -197,364,855 -555,638,887 -741,472,980 -885,194,630 0
– 2 years after year of occurrence -50,992,064 -35,023,721 -44,633,666 -45,257,590 -192,793,182 -186,680,646 -543,775,432 -735,637,749 0 0
– 3 years after year of occurrence -50,043,400 -35,419,020 -44,978,043 -68,537,482 -184,450,510 -175,172,512 -545,764,921 0 0 0
– 4 years after year of occurrence
– 5 years after year of occurrence		 -49,856,975
-51,281,385		 -36,084,311
-140,010,238		 -61,539,251
-60,808,754		 -65,122,709
-57,187,891		 -182,687,209
-174,381,279		 -173,814,492
0		 0
0		 0
0		 0
0		 0
0
– 6 years after year of occurrence -48,970,334 -132,897,016 -63,554,910 -55,663,435 0 0 0 0 0 0
– 7 years after year of occurrence -48,203,099 -124,839,722 -62,917,869 0 0 0 0 0 0 0
– 8 years after year of occurrence -48,177,698 -123,024,552 0 0 0 0 0 0 0 0
– 9 years after year of occurrence -47,796,551 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -44,497,729 -45,127,779 -49,282,830 -48,504,797 -153,064,212 -147,179,364 -513,364,411 -681,824,756 -783,153,017 -380,991,224
Net liabilities -3,298,822 -77,896,773 -13,635,039 -7,158,638 -21,317,067 -26,635,128 -32,400,510 -53,812,993 -102,041,613 -288,552,836 75.586.822
-824,179,857
in EUR
TOTAL
-626.749.419
Net liabilities of previous years 3.908.534

Net liabilities for incurred claims included in the financial statements -556.016.369

Accounting report

Statement of management's responsibilities Independent auditor's report

Life claims development of the Triglav Group

joint ventures

3.4 Financial investments and their return 3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in the financial statements

  1. Other information

Search in report

Appendix

Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL
Cumulative estimate of gross claims
– at the end of year of occurrence -14,386,984 -21,735,265 -53,277,750 -36,440,597 -44,882,573 -58,259,542 -99,994,315 -180,363,333 -202,436,278 -218,153,874
– 1 year after year of occurrence -13,678,534 -20,280,430 -52,248,400 -34,965,956 -42,685,099 -86,136,357 -99,040,501 -179,387,741 -200,886,861 0
– 2 years after year of occurrence -13,599,658 -20,064,387 -51,806,572 -34,458,252 -76,104,760 -85,559,839 -98,658,331 -178,856,585 0 0
– 3 years after year of occurrence -13,615,224 -19,898,607 -51,737,829 -66,992,310 -75,904,436 -85,749,054 -98,424,131 0 0 0
– 4 years after year of occurrence -13,608,409 -19,918,903 -97,128,699 -67,004,616 -76,133,688 -85,916,962 0 0 0 0
– 5 years after year of occurrence -13,637,568 -37,502,281 -97,112,399 -67,178,885 -76,151,635 0 0 0 0 0
– 6 years after year of occurrence -30,173,319 -37,528,413 -97,160,241 -67,176,752 0 0 0 0 0 0
– 7 years after year of occurrence -30,173,020 -37,581,335 -97,147,755 0 0 0 0 0 0 0
– 8 years after year of occurrence -30,205,274 -37,662,394 0 0 0 0 0 0 0 0
– 9 years after year of occurrence -30,226,703 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -30,035,960 -37,258,112 -96,792,886 -66,798,961 -75,609,893 -85,128,046 -97,451,559 -176,602,799 -195,922,799 -193,253,368
Gross liabilities -190,743 -404,282 -354,869 -377,791 -541,742 -788,916 -972,572 -2,253,786 -4,964,062 -24,900,506 -35,749,269
Gross liabilities of previous years -378,544
Discounting effect 658,148
Gross liabilities for incurred claims included in the financial statements -35,469,665
in EUR
Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL
Cumulative estimate of net claims
– at the end of year of occurrence -14,386,984 -21,735,265 -53,277,750 -36,440,597 -44,724,691 -57,803,607 -98,744,870 -179,571,760 -201,345,098 -216,122,747
– 1 year after year of occurrence -13,678,534 -20,280,430 -52,248,400 -34,965,956 -42,685,099 -85,887,625 -98,256,293 -178,432,391 -199,646,135 0
– 2 years after year of occurrence -13,599,658 -20,064,387 -51,806,572 -34,458,252 -76,104,760 -85,301,682 -97,861,346 -177,894,960 0 0
– 3 years after year of occurrence -13,615,224 -19,898,607 -51,737,829 -66,992,310 -75,904,436 -85,475,406 -97,625,186 0 0 0
– 4 years after year of occurrence -13,608,409 -19,918,903 -97,128,699 -67,004,616 -76,133,688 -85,643,706 0 0 0 0
– 5 years after year of occurrence -13,637,568 -37,502,281 -97,112,399 -67,178,885 -76,151,635 0 0 0 0 0
– 6 years after year of occurrence -30,173,319 -37,528,413 -97,160,241 -67,176,752 0 0 0 0 0 0
– 7 years after year of occurrence -30,173,020 -37,581,335 -97,147,755 0 0 0 0 0 0 0
– 8 years after year of occurrence -30,205,274 -37,662,394 0 0 0 0 0 0 0 0
– 9 years after year of occurrence -30,226,703 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -30,035,960 -37,258,112 -96,792,886 -66,798,961 -75,609,893 -84,859,002 -96,652,614 -175,645,672 -194,697,782 -192,159,339
Net liabilities -190,743 -404,282 -354,869 -377,791 -541,742 -784,704 -972,572 -2,249,288 -4,948,353 -23,963,408 -34,787,752
Net liabilities of previous years -378,544
Discounting effect 649,839
Net liabilities for incurred claims included in the financial statements -34,516,457

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Accounting report

Statement of management's responsibilities Independent auditor's report 1. Financial statements

Non-life claims development of Zavarovalnica Triglav

joint ventures

3.4 Financial investments and their return 3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in the financial statements

  1. Other information

Appendix

Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL
Cumulative estimate of gross claims
– at the end of year of occurrence -1,854,864 -2,738,258 -3,624,457 -4,134,287 -5,102,050 -9,169,890 -445,223,632 -644,185,807 -899,902,048 -523,529,282
– 1 year after year of occurrence -2,002,500 -3,031,166 -4,282,442 -5,684,507 -6,747,208 -87,315,479 -465,627,636 -641,711,235 -888,629,358 0
– 2 years after year of occurrence -1,978,188 -2,926,974 -4,047,463 -5,452,307 -38,419,811 -81,322,740 -448,187,340 -638,166,562 0 0
– 3 years after year of occurrence -1,902,410 -2,825,846 -3,907,803 -24,457,070 -34,565,616 -75,022,804 -432,257,776 0 0 0
– 4 years after year of occurrence -1,869,136 -2,767,715 -20,991,393 -22,548,601 -35,327,877 -77,249,128 0 0 0 0
– 5 years after year of occurrence -1,838,694 -107,604,960 -20,523,649 -15,196,918 -34,128,493 0 0 0 0 0
– 6 years after year of occurrence -1,823,988 -99,193,401 -22,916,996 -14,103,029 0 0 0 0 0 0
– 7 years after year of occurrence -1,669,520 -92,167,319 -21,229,489 0 0 0 0 0 0 0
– 8 years after year of occurrence -1,548,348 -90,077,286 0 0 0 0 0 0 0 0
– 9 years after year of occurrence -1,449,694 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -1,452,015 -13,472,290 -9,202,839 -9,164,343 -18,667,829 -57,198,074 -395,069,876 -579,684,619 -766,481,003 -309,858,186
Gross liabilities 2,320 -76,604,996 -12,026,651 -4,938,686 -15,460,664 -20,051,053 -37,187,900 -58,481,943 -122,148,355 -213,671,097 -560,569,024
Gross liabilities of previous years 20,694
Discounting effect 59,427,007
Gross liabilities for incurred claims included in the financial statements -501,121,322
in EUR
Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL
Cumulative estimate of net claims
– at the end of year of occurrence -1,854,864 -2,738,258 -3,624,457 -4,134,287 -5,102,050 -9,169,890 -379,619,257 -581,715,006 -670,035,934 -443,706,492
– 1 year after year of occurrence -2,002,500 -3,031,166 -4,282,442 -5,684,507 -6,747,208 -53,167,933 -364,008,739 -556,691,379 -632,702,582 0
– 2 years after year of occurrence -1,978,188 -2,926,974 -4,047,463 -5,452,307 -25,082,873 -43,185,055 -357,524,089 -544,981,382 0 0
– 3 years after year of occurrence -1,902,410 -2,825,846 -3,907,803 -14,355,292 -20,529,617 -39,074,621 -358,284,220 0 0 0
– 4 years after year of occurrence -1,869,136 -2,767,715 -18,090,820 -12,968,235 -21,259,929 -40,984,475 0 0 0 0
– 5 years after year of occurrence -1,838,694 -104,785,827 -17,323,415 -6,809,784 -17,492,566 0 0 0 0 0
– 6 years after year of occurrence 243,576 -97,354,570 -21,034,244 -6,702,188 0 0 0 0 0 0
– 7 years after year of occurrence -321,480 -90,606,336 -19,098,349 0 0 0 0 0 0 0
– 8 years after year of occurrence -695,651 -88,526,742 0 0 0 0 0 0 0 0
– 9 years after year of occurrence 650,721 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -1,039,766 -8,930,116 -7,599,135 -2,909,704 -5,756,830 -26,943,791 -347,949,937 -523,842,819 -590,122,186 -293,400,160
Net liabilities 1,690,487 -79,596,626 -11,499,214 -3,792,484 -11,735,736 -14,040,684 -10,334,283 -21,138,562 -42,580,396 -150,306,331 -343,333,830
Net liabilities of previous years 8,612,379
Discounting effect 49,426,628
Net liabilities for incurred claims included in the financial statements -285,294,823

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Accounting report

Statement of management's responsibilities Independent auditor's report

Life claims development of Zavarovalnica Triglav

joint ventures

Search in report

Appendix

Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL
Cumulative estimate of net claims
– at the end of year of occurrence -14,386,984 -21,647,714 -52,592,395 -33,459,027 -39,599,423 -49,550,045 -87,637,065 -159,827,719 -179,972,299 -193,759,479
– 1 year after year of occurrence -13,678,534 -20,232,266 -51,586,961 -32,203,398 -37,415,710 -76,465,375 -85,847,609 -157,805,928 -177,267,290 0
– 2 years after year of occurrence -13,599,658 -20,022,748 -51,163,571 -31,737,178 -70,858,274 -75,807,034 -85,243,562 -157,061,025 0 0
– 3 years after year of occurrence -13,615,224 -19,859,824 -51,096,161 -64,199,193 -70,646,080 -75,858,750 -84,832,719 0 0 0
– 4 years after year of occurrence -13,608,409 -19,880,634 -96,446,139 -64,211,232 -70,830,437 -75,907,965 0 0 0 0
– 5 years after year of occurrence -13,637,568 -37,427,115 -96,397,582 -64,392,599 -70,847,505 0 0 0 0 0
– 6 years after year of occurrence -30,139,837 -37,425,558 -96,460,959 -64,388,428 0 0 0 0 0 0
– 7 years after year of occurrence -30,125,684 -37,481,286 -96,448,407 0 0 0 0 0 0 0
– 8 years after year of occurrence -30,169,037 -37,562,040 0 0 0 0 0 0 0 0
– 9 years after year of occurrence -30,189,615 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -30,031,610 -37,187,054 -96,127,436 -64,044,968 -70,344,029 -75,181,847 -83,995,611 -155,056,200 -172,675,437 -170,691,435
Net liabilities -158,005 -374,986 -320,971 -343,460 -503,475 -726,119 -837,108 -2,004,825 -4,591,853 -23,068,044 -32,928,846
Net liabilities of previous years -335,416
Discounting effect 628,479
Net liabilities for incurred claims included in the financial statements -32,635,783
in EUR
Year of occurence 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL
Cumulative estimate of net claims
– at the end of year of occurrence -14,386,984 -21,647,714 -52,592,395 -33,459,027 -39,599,423 -49,550,045 -87,637,065 -159,827,719 -179,972,299 -193,487,579
– 1 year after year of occurrence -13,678,534 -20,232,266 -51,586,961 -32,203,398 -37,415,710 -76,465,375 -85,847,609 -157,805,928 -177,267,290 0
– 2 years after year of occurrence -13,599,658 -20,022,748 -51,163,571 -31,737,178 -70,858,274 -75,807,034 -85,243,562 -157,061,025 0 0
– 3 years after year of occurrence -13,615,224 -19,859,824 -51,096,161 -64,199,193 -70,646,080 -75,858,750 -84,832,719 0 0 0
– 4 years after year of occurrence -13,608,409 -19,880,634 -96,446,139 -64,211,232 -70,830,437 -75,907,965 0 0 0 0
– 5 years after year of occurrence -13,637,568 -37,427,115 -96,397,582 -64,392,599 -70,847,505 0 0 0 0 0
– 6 years after year of occurrence -30,139,837 -37,425,558 -96,460,959 -64,388,428 0 0 0 0 0 0
– 7 years after year of occurrence -30,125,684 -37,481,286 -96,448,407 0 0 0 0 0 0 0
– 8 years after year of occurrence -30,169,037 -37,562,040 0 0 0 0 0 0 0 0
– 9 years after year of occurrence -30,189,615 0 0 0 0 0 0 0 0 0
Cumulative payments up to the balance sheet date -30,031,610 -37,187,054 -96,127,436 -64,044,968 -70,344,029 -75,181,847 -83,995,611 -155,056,200 -172,675,437 -170,542,320
Net liabilities -158,005 -374,986 -320,971 -343,460 -503,475 -726,119 -837,108 -2,004,825 -4,591,853 -22,945,259 -32,806,061
Net liabilities of previous years -335,416
Discounting effect 626,043
Net liabilities for incurred claims included in the financial statements -32,515,433

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.2 Reinsurance business

3.2.1 Assumptions and accounting estimates used in the valuation of reinsurance contracts

The key assumptions in the valuation of reinsurance contracts are described in Section 3.1.1.

3.2.2 Reinsurance contract assets and liabilities

Reinsurance contract assets and liabilities of the Triglav Group

31 Dec 2024 31 Dec 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL
Reinsurance contract assets 289,254,923 0 355,332 289,610,255 327,345,399 387,756 327,733,155
Assets for remaining coverage 21,901,039 0 -477,526 21,423,513 8,580,960 2,213 8,583,173
Assets for incurred claims 267,353,884 0 832,858 268,186,742 318,764,439 385,543 319,149,982
Reinsurance contract liabilities 2,146,102 8,336 0 2,154,438 6,457,354 3,246 6,460,600
Liabilities for remaining coverage 2,955,705 128,686 0 3,084,391 6,214,256 4,712 6,218,968
Liabilities for incurred claims -809,603 -120,350 0 -929,953 243,098 -1,466 241,632
Total net reinsurance contract assets 287,108,821 -8,336 355,332 287,455,817 320,888,045 384,510 321,272,555
Net assets for remaining coverage 18,945,334 -128,686 -477,526 18,339,122 2,366,704 -2,499 2,364,205
Net assets for incurred claims 268,163,487 120,350 832,858 269,116,695 318,521,341 387,009 318,908,350

Categories of reinsurance contract assets and liabilities of the Triglav Group

in EUR
31 Dec 2024 31 Dec 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL
Reinsurance contract assets 289,254,923 0 355,332 289,610,255 327,345,399 387,756 327,733,155
Expected present value of future cash flows 272,571,833 0 308,231 272,880,064 306,892,445 365,983 307,258,428
Risk adjustment for non-financial risk 16,683,090 0 47,101 16,730,191 20,452,954 21,773 20,474,727
Contractual service margin 0 0 0 0 0 0 0
Reinsurance contract liabilities 2,146,102 8,336 0 2,154,438 6,457,354 3,246 6,460,600
Expected present value of future cash flows 2,177,325 3,597,033 0 5,774,358 6,494,471 3,329 6,497,800
Risk adjustment for non-financial risk -31,223 -840,610 0 -871,833 -37,117 -83 -37,200
Contractual service margin 0 -2,748,087 0 -2,748,087 0 0 0
Total net reinsurance contract assets 287,108,821 -8,336 355,332 287,455,817 320,888,045 -384,510 320,503,535
Net assets from present value of future cash flows 270,394,508 -3,597,033 308,231 267,105,706 300,397,974 -362,654 300,035,320
Net assets from risk adjustment for non-financial risk 16,714,313 840,610 47,101 17,602,024 20,490,071 -21,856 20,468,215
Net assets from contractual service margin 0 2,748,087 0 2,748,087 0 0 0

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
31 Dec 2024 31 Dec 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 TOTAL
Reinsurance contract assets 249,461,236 0 249,461,236 306,935,188 306,936,690
Assets for remaining coverage 33,634,736 0 33,634,736 25,911,984 25,913,486
Assets for incurred claims 215,826,500 0 215,826,500 281,023,204 281,023,204
Reinsurance contract liabilities 421,288 8,336 429,625 0 0
Liabilities for remaining coverage 421,288 128,686 549,974 0 0
Liabilities for incurred claims 0 -120,350 -120,350 0 0
Total net reinsurance contract assets 249,039,947 -8,336 249,031,611 306,935,188 306,936,690
Net assets for remaining coverage 33,213,448 -128,686 33,084,761 25,911,984 25,913,486
Net assets for incurred claims 215,826,500 120,350 215,946,850 281,023,204 281,023,204

Categories of reinsurance contract assets and liabilities of Zavarovalnica Triglav

Reinsurance contract assets and liabilities of Zavarovalnica Triglav

in EUR
31 Dec 2024 31 Dec 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 TOTAL
Reinsurance contract assets 249,461,236 0 249,461,236 306,935,188 306,936,690
Expected present value of future cash flows 236,366,075 0 236,366,075 288,812,910 288,814,413
Risk adjustment for non-financial risk 13,095,160 0 13,095,160 18,122,278 18,122,278
Contractual service margin 0 0 0 0 0
Reinsurance contract liabilities 421,288 8,336 429,625 0 0
Expected present value of future cash flows 421,288 3,597,033 4,018,321 0 0
Risk adjustment for non-financial risk 0 -840,609 -840,609 0 0
Contractual service margin 0 -2,748,087 -2,748,087 0 0
Total net reinsurance contract assets 249,039,947 -8,336 249,031,611 -306,935,188 -306,936,690
Net assets from present value of future cash flows 235,944,787 -3,597,033 232,347,754 -288,812,910 -288,814,413
Net assets from risk adjustment for non-financial risk 13,095,160 840,609 13,935,770 -18,122,278 -18,122,278
Net assets from contractual service margin 0 2,748,087 2,748,087 0 0

274

Business report

Accounting report

Statement of management's responsibilities Independent auditor's report

Search in report

Appendix

3.2.3 Reinsurance income and reinsurance service expenses recognised in profit or loss and other comprehensive income

Reinsurance income and reinsurance service expenses of the Triglav Group

in EUR
2024 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL
Reinsurance income recognised in profit or los 122,792,502 268,751 1,910,332 124,971,585 274,740,287 1,279,817 276,020,104
Reinsurers' shares in claims and other insurance service
expenses		 113,184,670 268,751 1,752,349 115,205,770 253,508,820 1,086,198 254,595,018
Changes in reinsurers' shares that relate to changes in liabilities
for incurred claims		 9,562,034 0 157,983 9,720,017 21,228,667 193,618 21,422,285
Changes in reinsurers' shares that relate to underlying
onerous contracts		 45,798 0 0 45,798 2,802 0 2,802
Reinsurance service expenses recognised in profit or loss 263,995,431 -374,513 -1,532,563 265,902,507 244,752,915 339,376 244,413,539
Expected reinsurers' share in insurance income 263,995,431 -374,513 -1,532,563 265,902,507 244,752,913 339,376 244,413,537
Net income/expenses from reinsurance contracts recognised
in profit or loss		 141,202,929 -105,762 377,769 140,930,922 29,987,372 1,619,193 31,606,565
Finance income/expenses from reinsurance contracts 8,513,279 118 4,723 8,518,120 3,648,410 8,761 3,657,171
Financial effects from non-performance risk 718,777 793 -135 719,435 -606,316 -968 -607,284
Interest accreted 5,838,674 428 4,376 5,843,478 664,423 8,378 672,801
Other – effect on other comprehensive income before tax 1,955,828 -1,103 482 1,955,207 3,590,303 1,351 3,591,654
Total 132,689,650 -105,644 382,492 132,412,802 33,635,782 1,627,954 35,263,736

in EUR

2024 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
Premium allocation
approach (PAA)		 TOTAL
Finance income/expenses recognised in profit or loss 6,557,455 1,221 4,241 6,562,917 58,108 7,410 65,518
Finance income/expenses recognised in other
comprehensive income		 1,955,828 -1,103 482 1,955,207 3,590,307 1,351 3,591,658
Total finance income/expenses from reinsurance contracts 8,513,283 118 4,723 8,518,124 3,648,415 8,761 3,657,176

Accounting report

Statement of management's responsibilities Independent auditor's report

3.3 Investments in subsidiaries, associates and

joint ventures 3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in

Appendix

in EUR
2024 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 TOTAL
Reinsurance income recognised in profit or los 92,801,424 268,751 93,070,175 227,396,192 227,396,192
Reinsurers' shares in claims and other insurance service expenses 74,790,585 268,751 75,059,336 221,041,486 221,041,486
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims 15,150,025 0 15,150,025 5,931,614 5,931,614
Changes in reinsurers' shares that relate to underlying onerous contracts 2,860,814 0 2,860,814 423,092 423,092
Reinsurance service expenses recognised in profit or loss -223,352,761 -374,513 -223,727,274 -187,866,733 -187,866,733
Expected reinsurers' share in insurance income -223,352,761 -374,513 -223,727,274 -187,866,733 -187,866,733
Net income/expenses from reinsurance contracts recognised in profit or loss -130,551,336 -105,762 -130,657,099 39,529,459 39,529,459
Finance income/expenses from reinsurance contracts 7,160,708 118 7,160,826 4,228,706 4,228,706
Financial effects from non-performance risk 736,148 793 736,941 -410,334 -410,334
Interest accreted 4,996,046 428 4,996,474 547,850 547,850
Other (effect on other comprehensive income before tax) 1,428,514 -1,103 1,427,411 4,091,190 4,091,190
Total -123,390,628 -105,645 -123,496,273 43,758,165 43,758,165

Reinsurance income and reinsurance service expenses of Zavarovalnica Triglav

in EUR
2024 2023
NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 LIFE -
General model (BBA)		 TOTAL NON LIFE and HEALTH -
Premium allocation
approach (PAA)		 TOTAL
Finance income/expenses recognised in profit or loss 5,732,195 1,221 5,733,415 137,516 137,516
Finance income/expenses recognised in other comprehensive income 1,428,514 -1,103 1,427,411 4,091,190 4,091,190
Total finance income/expenses from reinsurance contracts 7,160,708 118 7,160,826 4,228,706 4,228,706

Accounting report

Statement of management's responsibilities Independent auditor's report

joint ventures

3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

Appendix

3.2.4 Assets and liabilities for remaining coverage and assets and liabilities for incurred claims

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of the Triglav Group

in EUR
2024 LIFE
Remaining coverage
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Excluding the
loss component		 Loss component Incurred claims TOTAL
Opening balance of net reinsurance contract assets/liabilitie 0 0 0 0
Reinsurance contract assets 0 0 0 0
Reinsurance contract liabilities 0 0 0 0
Reinsurance income 0 0 268,750 268,750
Reinsurers' shares in claims 0 0 268,750 268,750
Reinsurance service expenses -374,513 0 0 -374,513
Finance income/expenses from reinsurance contracts -1,389 0 714 -675
Financial effects from non-performance risk 793 0 0 793
Cash flows 246,424 0 -149,115 97,309
Premiums paid 246,424 0 0 246,424
Reinsurance service expenses recovered for insurance contracts issued 0 0 -149,115 -149,115
Closing balance of net reinsurance contract assets/liabilities -128,686 0 120,350 -8,336
Reinsurance contract assets 0 0 0 0
Reinsurance contract liabilities -128,686 0 120,350 -8,336

In 2023, the Group did not have any reinsurance contracts valued using the general model.

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
2024 NON-LIFE and HEALTH LIFE
Remaining coverage Incurred claims Remaining coverage Incurred claims
CONTRACTS MEASURED UNDER THE PREMIUM
ALLOCATION APPROACH (PAA)		 Excluding the
loss
component		 Loss
component		 Estimates of
the present
value of the
future cash
flows		 Risk
adjustment for
non-financial
risk		 Total Excluding the
loss
component		 Loss
component		 Estimates of
the present
value of the
future cash
flows		 Risk
adjustment for
non-financial
risk		 Total TOTAL
Opening balance of net reinsurance contract assets/liabilitie 2,362,726 3,978 298,015,992 20,490,070 320,872,766 -2,499 0 365,153 21,856 384,510 321,257,276
Reinsurance contract assets 8,048,029 35,842 297,120,737 20,452,953 325,657,561 2,213 0 363,770 21,773 387,756 326,045,317
Reinsurance contract liabilities -5,685,303 -31,864 895,255 37,117 -4,784,795 -4,712 0 1,383 83 -3,246 -4,788,041
Reinsurance income 0 45,798 127,046,163 -4,299,453 122,792,508 0 0 1,885,362 24,970 1,910,332 124,702,840
Reinsurance income 0 0 108,014,266 5,170,405 113,184,671 0 0 1,706,645 45,704 1,752,349 114,937,020
Changes in reinsurers' shares that relate to changes in liabilities
for incurred claims		 0 0 19,031,897 -9,469,858 9,562,039 0 0 178,717 -20,734 157,983 9,720,022
Changes in reinsurers' shares that relate to underlying onerous
contracts		 0 45,798 0 0 45,798 0 0 0 0 0 45,798
Reinsurance service expenses -263,995,433 0 0 0 -263,995,433 -1,532,563 0 0 0 -1,532,563 -265,527,996
Reinsurance investment components 0 0 0 0 0 0 0 0 0 0 0
Finance income/expenses from reinsurance contracts 0 -50 7,271,343 523,023 7,794,316 0 0 4,583 275 4,858 7,799,174
Financial effects from non-performance risk 0 0 718,777 0 718,777 0 0 -135 0 -135 718,642
Cash flows 280,539,315 0 -181,660,474 0 98,878,841 1,057,537 0 -1,469,205 0 -411,668 98,467,173
Premiums paid 280,539,315 0 0 0 280,539,315 1,057,537 0 0 0 1,057,537 281,596,852
Reinsurance service expenses recovered for insurance contracts
issued		 0 0 -181,660,474 0 -181,660,474 0 0 -1,469,205 0 -1,469,205 -183,129,679
Effect of exchange rate differences -10,998 0 57,373 673 47,046 0 0 0 0 0 47,044
Closing balance of net reinsurance contract assets/liabilities 18,895,610 49,724 251,449,174 16,714,313 287,108,821 -477,526 0 785,757 47,101 355,332 287,464,153
Reinsurance contract assets 21,851,315 49,724 250,670,794 16,683,090 289,254,923 -477,526 0 785,757 47,101 355,332 289,610,255
Reinsurance contract liabilities -2,955,705 0 778,380 31,223 -2,146,102 0 0 0 0 0 -2,146,102

277

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2023 NON-LIFE and HEALTH LIFE
Remaining coverage Incurred claims Remaining coverage Incurred claims
CONTRACTS MEASURED UNDER THE PREMIUM
ALLOCATION APPROACH (PAA)		 Excluding the
loss
component		 Loss
component		 Estimates of
the present
value of the
future cash
flows		 Risk
adjustment for
non-financial
risk		 Total Excluding the
loss
component		 Loss
component		 Estimates of
the present
value of the
future cash
flows		 Risk
adjustment for
non-financial
risk		 Total TOTAL
Opening balance of net reinsurance contract assets/liabilitie 1,882,869 1,172 154,897,985 15,196,460 171,978,486 7,579,711 0 293,345 17,494 7,890,550 179,869,036
Reinsurance contract assets 18,052,787 1,168 149,247,690 14,141,903 181,443,548 7,579,711 0 293,345 17,494 7,890,550 189,334,098
Reinsurance contract liabilities -16,169,918 0 5,650,295 1,054,557 -9,465,062 0 0 0 0 0 -9,465,062
Reinsurance income 0 34,663 269,902,197 4,835,288 274,772,148 0 0 1,276,003 3,814 1,279,817 276,051,965
Reinsurance income 0 0 242,806,688 10,702,131 253,508,819 0 0 1,065,930 20,268 1,086,198 254,595,017
Changes in reinsurers' shares that relate to changes in liabilities
for incurred claims		 0 0 27,095,509 -5,866,843 21,228,666 0 0 210,073 -16,454 193,619 21,422,285
Changes in reinsurers' shares that relate to underlying onerous
contracts		 0 34,663 0 0 34,663 0 0 0 0 0 34,663
Reinsurance service expenses -244,752,915 0 0 0 -244,752,915 339,376 0 0 0 339,376 -244,413,539
Reinsurance investment components 0 0 0 0 0 0 0 0 0 0 0
Finance income/expenses from reinsurance contracts 0 0 3,795,834 458,894 4,254,731 0 0 9,179 549 9,728 4,264,459
Financial effects from non-performance risk 0 0 -606,321 0 -606,321 0 0 -968 0 -968 -607,289
Cash flows 245,230,380 0 -129,905,029 0 115,325,351 -7,921,586 0 -1,212,435 0 -9,134,021 106,191,330
Premiums paid 245,230,380 0 0 0 245,230,380 -7,921,586 0 0 0 -7,921,586 237,308,794
Reinsurance service expenses recovered for insurance contracts
issued		 0 0 -129,905,029 0 -129,905,029 0 0 -1,212,435 0 -1,212,435 -131,117,464
Effect of exchange rate differences 2,392 0 -53,396 -571 -51,574 0 0 0 0 0 -51,576
Closing balance of net reinsurance contract assets/liabilities 2,362,726 35,839 298,031,270 20,490,071 320,919,906 -2,499 0 365,153 21,856 384,510 321,304,416
Reinsurance contract assets 8,545,118 35,842 298,210,415 20,554,024 327,345,399 2,213 0 363,770 21,773 387,756 327,733,155
Reinsurance contract liabilities -6,182,392 0 -179,145 -63,953 -6,425,493 -4,712 0 1,383 83 -3,246 -6,428,739

Accounting report

Statement of management's responsibilities Independent auditor's report

3.1 Insurance business

3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

3.6 Operating expenses

Appendix

in EUR
2024 LIFE
Remaining coverage
LIFE INSURANCE CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Excluding the
loss component		 Loss component Incurred claims TOTAL
Opening balance of net reinsurance contract assets/liabilities 0 0 0 0
Reinsurance contract assets 0 0 0 0
Reinsurance contract liabilities 0 0 0 0
Reinsurance income 0 0 268,751 268,751
Reinsurers' shares in claims 0 0 268,751 268,751
Reinsurance service expenses -374,513 0 0 -374,513
Finance income/expenses from reinsurance contracts -1,389 0 714 -675
Financial effects from non-performance risk 793 0 0 793
Cash flows 246,424 0 -149,115 97,308
Premiums paid 246,424 0 0 246,424
Reinsurance service expenses recovered for insurance contracts issued 0 0 -149,115 -149,115
Closing balance of net reinsurance contract assets/liabilities -128,686 0 120,350 -8,336
Reinsurance contract assets 0 0 0 0
Reinsurance contract liabilities -128,686 0 120,350 -8,336

In 2023, the Group did not have any reinsurance contracts valued using the general model.

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of Zavarovalnica Triglav

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
2024 2024 2023
Remaining coverage Incurred claims Remaining coverage Incurred claims
NON-LIFE AND HEALTH INSURANCE CONTRACTS MEASURED UNDER
THE PREMIUM ALLOCATION APPROACH (PAA)		 Excluding
the loss
component		 Loss
component		 Estimates of
the present
value of the
future cash
flows		 Risk
adjustment for
non-financial
risk		 TOTAL Excluding
the loss
component		 Loss
component		 Estimates of
the present
value of the
future cash
flows		 Risk
adjustment for
non-financial
risk		 TOTAL
Opening balance of net reinsurance contract assets/liabilitie 25,201,695 711,791 262,900,927 18,122,278 306,936,690 9,347,434 267,378 139,479,200 15,362,099 164,456,111
Reinsurance contract assets 25,201,695 711,791 262,900,927 18,122,278 306,936,690 21,893,778 267,328 132,368,943 13,978,719 168,508,768
Reinsurance contract liabilities 0 0 0 0 0 -12,546,344 50 7,110,257 1,383,380 -4,052,657
Reinsurance income 0 2,860,814 95,480,066 -5,539,455 92,801,424 0 423,092 224,799,116 2,173,984 227,396,192
Reinsurers' shares in claims 0 0 71,129,297 3,661,288 74,790,585 0 0 210,423,792 10,617,695 221,041,486
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims 0 0 24,350,769 -9,200,743 15,150,025 0 0 14,375,325 -8,443,711 5,931,614
Changes in reinsurers' shares that relate to underlying onerous contracts 0 2,860,814 0 0 2,860,814 0 423,092 0 0 423,092
Reinsurance service expenses -223,352,761 0 0 0 -223,352,761 -187,866,733 0 0 0 -187,866,733
Reinsurance investment components -3,290,011 0 3,290,011 0 0 -3,438,489 0 3,438,489 0 0
Finance income/expenses from reinsurance contracts 0 12,164 5,900,058 512,338 6,424,560 0 21,321 4,031,524 586,194 4,639,040
Financial effects from non-performance risk 0 0 736,148 0 736,148 0 0 -410,334 0 -410,334
Cash flows 231,069,755 0 -165,575,870 0 65,493,885 207,157,981 0 -108,437,069 0 98,720,911
Premiums paid 231,069,755 0 0 0 231,069,755 207,157,981 0 0 0 207,157,981
Reinsurance service expenses recovered for insurance contracts issued 0 0 -165,575,870 0 -165,575,870 0 0 -108,437,069 0 -108,437,069
Closing balance of net reinsurance contract assets/liabilities 29,628,679 3,584,769 202,731,339 13,095,160 249,039,947 25,200,193 711,791 262,900,927 18,122,278 306,935,188
Reinsurance contract assets 30,049,976 3,584,760 202,731,339 13,095,160 249,461,236 25,200,193 711,791 262,900,927 18,122,278 306,935,188
Reinsurance contract liabilities -421,297 0 0 0 -421,288 0 0 0 0 0

280

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.2.5 The present value of expected cash flows, risk adjustment for non-financial risk and contractual service margin from reinsurance contracts

Present value of expected cash flows, risk adjustment and contractual service margin from reinsurance contracts of the Triglav Group

in EUR
2024 LIFE
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Expected present value
of future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective approach		 Contracts under
the fair value approach		 Other
contracts		 Total contractual
service margin		 TOTAL
Opening balance of net reinsurance contract assets
and liabilities		 0 0 0 0 0 0 0
Reinsurance contract assets 0 0 0 0 0 0 0
Reinsurance contract liabilities 0 0 0 0 0 0 0
Changes -3,670,467 834,704 0 0 2,729,999 2,729,999 -105,764
Changes that relate to future service -3,672,198 872,652 0 0 2,799,545 2,799,545 0
Changes in estimates that adjust the CSM -32,969 -87,018 0 0 119,986 119,986 0
Effects of contracts for which initial recognition was carried out
in the period		 -3,639,229 959,670 0 0 2,679,559 2,679,559 0
Changes that relate to current service 1,731 -37,948 0 0 -69,546 -69,546 -105,763
CSM recognised in profit or loss to reflect the transfer of services 0 0 0 0 -69,546 -69,546 -69,546
Change in risk adjustment for non-financial risk 0 -37,948 0 0 0 0 -37,948
Experience adjustment 1,731 0 0 0 0 0 1,731
Changes that relate to past service 0 0 0 0 0 0 0
Reinsurance finance income and expenses -24,667 5,905 0 0 18,087 18,087 -675
Financial effects of default risk 793 0 0 0 0 0 793
Cash flows 97,309 0 0 0 0 0 97,309
Premium paid 246,424 0 0 0 0 0 246,424
Reinsurance reimbursement for insurance contracts issued -149,115 0 0 0 0 0 -149,115
Closing balance of net reinsurance contract assets
and liabilities		 -3,597,033 840,610 0 0 2,748,087 2,748,087 -8,336
Reinsurance contract assets 0 0 0 0 0 0 0
Reinsurance contract liabilities -3,597,033 840,610 0 0 2,748,087 2,748,087 -8,336

In 2023, the Group did not have any reinsurance contracts valued using the general model.

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

Present value of expected cash flows, risk adjustment and contractual service margin from reinsurance contracts of Zavarovalnica Triglav
in EUR
2024 LIFE
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) Expected present value
of future cash flows		 Risk adjustment for
non-financial risk		 Contracts under
the modified
retrospective approach		 Contracts under
the fair value approach		 Other
contracts		 Total contractual
service margin		 TOTAL
Opening balance of net reinsurance contract assets
and liabilities		 0 0 0 0 0 0 0
Reinsurance contract assets 0 0 0 0 0 0 0
Reinsurance contract liabilities 0 0 0 0 0 0 0
Changes -3,670,466 834,704 0 0 2,730,000 2,730,000 -105,762
Changes that relate to future service -3,672,198 872,652 0 0 2,799,546 2,799,546 0
Changes in estimates that adjust the CSM -32,969 -87,018 0 0 119,986 119,986 0
Effects of contracts for which initial recognition was carried out in
the period		 -3,639,229 959,670 0 0 2,679,559 2,679,559 0
Changes that relate to current service 1,731 -37,948 0 0 -69,546 -69,546 -105,762
CSM recognised in profit or loss to reflect the transfer of services 0 0 0 0 -69,546 -69,546 -69,546
Change in risk adjustment for non-financial risk 0 -37,948 0 0 0 0 -37,948
Experience adjustment 1,731 0 0 0 0 0 1,731
Changes that relate to past service 0 0 0 0 0 0 0
Reinsurance finance income and expenses -24,667 5,905 0 0 18,087 18,087 -675
Financial effects of default risk 793 0 0 0 0 0 793
Cash flows 97,308 0 0 0 0 0 97,308
Premium paid 246,424 0 0 0 0 0 246,424
Reinsurance reimbursement for insurance contracts issued -149,115 0 0 0 0 0 -149,115
Closing balance of net reinsurance contract assets
and liabilities		 -3,597,033 840,609 0 0 2,748,087 2,748,087 -8,336
Reinsurance contract assets 0 0 0 0 0 0 0
Reinsurance contract liabilities -3,597,033 840,609 0 0 2,748,087 2,748,087 -8,336

In 2023, the Group did not have any reinsurance contracts valued using the general model.

Accounting report

Appendix

3.2.6 The effects of reinsurance contracts for which initial recognition was carried out in the period and which are not measured according to the premium allocation approach (PAA)

The effects of the Triglav Group's reinsurance contracts for which initial recognition was carried out in 2024 and which are not measured according to the premium allocation approach

The effects of Zavarovalnica Triglav's reinsurance contracts for which initial recognition was carried out in 2024 and which are not measured according to the premium allocation approach

in EUR
2024 LIFE
General model (BBA)
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD Profitable contracts issued Onerous contracts issued
Present value of expected cash outflows -11,509,961 0
Incurred claims and other reinsurance service expenses 11,509,961 0
Present value of expected cash inflows -15,149,190 0
Risk adjustment for non-financial risk 959,670 0
Contractual service margin 2,679,559 0
Total upon initial recognition 0 0
in EUR
2024 LIFE
General model (BBA)
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD Profitable contracts issued Onerous contracts issued
Present value of expected cash outflows -11,509,961 0
Incurred claims and other reinsurance service expenses 11,509,961 0
Present value of expected cash inflows -15,149,190 0
Risk adjustment for non-financial risk 959,670 0
Contractual service margin 2,679,559 0
Total upon initial recognition 0 0

3.2.7 Expected release of contractual service margin for reinsurance contracts

Expected release of contractual service margin for the Triglav Group's reinsurance contracts

31 Dec 2024 in EUR
Contractual service margin < 1 year 1–2 years 2–3 years 3–4 years 4–5 years 5–10 years > 10 years TOTAL
Life insurance -273,933 -247,192 -224,650 -205,106 -188,193 -722,841 -886,172 -2,748,087
General model (BBA) -273,933 -247,192 -224,650 -205,106 -188,193 -722,841 -886,172 -2,748,087
TOTAL -273,933 -247,192 -224,650 -205,106 -188,193 -722,841 -886,172 -2,748,087

Expected release of contractual service margin for Zavarovalnica Triglav's reinsurance contracts

31 Dec 2024 in EUR
Contractual service margin < 1 year 1–2 years 2–3 years 3–4 years 4–5 years 5–10 years > 10 years TOTAL
Life insurance -273,933 -247,192 -224,650 -205,106 -188,193 -722,841 -886,172 -2,748,087
General model (BBA) -273,933 -247,192 -224,650 -205,106 -188,193 -722,841 -886,172 -2,748,087
TOTAL -273,933 -247,192 -224,650 -205,106 -188,193 -722,841 -886,172 -2,748,087

284

Business report

Accounting report

Appendix

PARTICIPATING INTEREST,
SHARE OF VOTING RIGHTS
(%)		 CARRYING AMOUNT
(in EUR)
COMPANY NAME 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Pozavarovalnica Triglav Re, d.d. 100 100 9,750,752 9,750,752
Triglav, Zdravstvena zavarovalnica, d.d. 100 100 2,500,000 2,500,000
Triglav INT, d.o.o. 100 100 100,270,730 100,270,730
Triglav, pokojninska družba, d.d. 100 100 52,070,000 52,070,000
Triglav, Upravljanje nepremičnin, d.o.o. 100 100 24,493,300 24,493,300
Triglav Skladi, d.o.o. 100 100 2,076,723 2,076,723
Triglav Avtoservis, d.o.o. 100 100 194,217 194,217
Triglav Svetovanje, d.o.o. 100 100 279,736 279,736
Zavod Vse bo v redu 100 100 100,000 100,000
Triglav penzisko društvo, a.d., Skopje 100 100 4,889,000 3,889,000
TOTAL 196,624,458 195,624,458

Zavarovalnica Triglav's interests in subsidiaries Zavarovalnica Triglav's interests in associates and joint ventures

PARTICIPATING INTEREST,
SHARE OF VOTING RIGHTS
(%)		 CARRYING AMOUNT
(in EUR)
COMPANY NAME 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Nama, d.d. 0.00 39.07 0 4,648,981
KATERA Beteiligungs-Verwaltungsgesellschaft P11, mbH 24.90 0.00 20,394,242 0
Triglavko, d.o.o. 38.47 38.47 4,519 18,509
TRIGAL, upravljanje naložb in svetovanje, d.o.o. 49.90 49.90 11,319,552 10,925,240
Diagnostični center Bled d.o.o. 40.10 40.10 23,341,075 21,560,001
Alifenet, d.o.o. 23.58 23.58 0 66,110
TOTAL 55,059,388 37,218,841

Zavarovalnica Triglav's investments in subsidiaries, associates and joint ventures

Triglav Group's interests in associates and joint ventures

PARTICIPATING INTEREST,
SHARE OF VOTING RIGHTS
(%)		 CARRYING AMOUNT
(in EUR)
COMPANY NAME 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Nama, d.d. 0.00 39.15 0 4,648,981
KATERA Beteiligungs-Verwaltungsgesellschaft P11, mbH 24.90 0.00 20,394,242 0
Triglavko, d.o.o. 38.47 38.47 4,519 18,509
TRIGAL, upravljanje naložb in svetovanje, d.o.o. 49.90 49.90 11,319,552 10,925,240
Diagnostični center Bled d.o.o. 40.10 40.10 23,341,075 21,560,001
Alifenet, d.o.o. 23.58 23.58 0 66,110
Društvo za upravljanje EDPF, a.d. 34.00 34.00 561,985 489,221
TOTAL 55,621,373 37,708,062
in EUR
Zavarovalnica Triglav Investments in subsidiaries Investments in associates
and joint ventures
As at 1 January 2023 181,631,957 37,369,536
Capital increase of companies 13,992,500 0
Revaluation under the equity method 0 2,131,016
Impairment 0 -2,281,711
As at 31 December 2023 = 1 January 2024 195,624,457 37,218,841
Purchases 0 20,350,718
Disposals 0 -4,648,980
Capital increase of companies 1,000,000 0
Revaluation under the equity method 0 2,204,920
Impairment 0 -66,111
As at 31 December 2024 196,624,457 55,059,388

Impairment of Zavarovalnica Triglav's investments in subsidiaries, associates and joint ventures

In 2024, the Company assessed signs of impairment of investments in associates. Where signs were identified, the recoverable amount of the investment was calculated and impairment was made for the difference to its carrying amount.

Impairment of investment in the associate Alifenet d.o.o. in the amount of EUR 66,111 was recognised in the Company's separate financial statements under expenses from investments in associates. In determining the recoverable amount of the investment in the associate Alifenet d.o.o., the impending liquidation of the company was considered, leading to the impairment of the investment to zero.

Search in report

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.4 Financial investments and their return

3.4.1 Types of financial investments

Types of financial investments of the Triglav Group and Zavarovalnica Triglav

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Financial investments at fair value through other
comprehensive income		 1,911,560,385 1,672,966,932 1,301,734,118 1,161,179,788
Debt securities and other fixed-income securities 1,907,187,575 1,668,940,444 1,298,834,209 1,158,538,398
Equity securities 4,372,810 4,026,488 2,899,910 2,641,391
Financial investments at amortised cost 222,568,437 229,559,726 143,875,820 142,843,306
Debt securities and other fixed-income securities 154,222,672 156,334,533 131,356,383 131,083,304
Equity securities 60,833,549 65,794,876 7,212,865 7,212,364
Bank deposits 6,622,689 6,557,903 5,306,572 4,547,639
Loans given 889,527 872,414 0 0
Financial investments at fair value through profit or loss 906,463,048 740,314,111 815,760,668 651,624,386
Debt securities and other fixed-income securities 31,222,922 34,769,923 20,107,544 22,677,800
Equity securities 875,220,316 705,544,188 795,633,313 628,946,586
Other financial instruments 19,810 0 19,810 0
Total financial investments 3,040,591,870 2,642,840,769 2,261,370,605 1,955,647,480
Debt securities and other fixed-income securities 2,092,633,169 1,860,044,900 1,450,298,136 1,312,299,502
Equity securities 879,593,126 709,570,676 798,533,223 631,587,976
Bank deposits 60,833,549 65,794,876 7,212,865 7,212,364
Loans given 6,622,689 6,557,903 5,306,572 4,547,639
Other financial instruments 909,337 872,414 19,810 0
in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Equity securities at fair value through profit or loss 875,220,316 705,544,188 795,633,313 628,946,586
Of which unit-linked insurance assets 678,910,235 540,890,478 645,594,699 512,824,007

As at 31 December 2024 and as at 31 December 2023, the Group's and the Company's portfolio included neither received securities as collateral for loans given, nor any securities pledged as collateral for their liabilities.

The proportion of financial investments classified as subordinated instruments by the issuer was 1.18% for the Group (31 December 2023: 1.69%) and 1.48% for the Company (31 December 2023: 2.17%).

Equity securities of the Triglav Group measured at fair value through other comprehensive income

in EUR
EQUITY SECURITIES AT FVOCI Carrying amount
31 Dec 2024		 Dividends
in 2024		 Carrying amount
31 Dec 2023		 Dividends
in 2023
ELEKTRO PRIMORSKA 2,899,910 101,160 2,641,391 0
KRKG SV 0 0 0 813,173
POSR SV 0 0 0 38,773
SAVR SV 79,291 0 78,671 0
BSRSRK1 BT 1,284,322 393,670 1,197,139 98,048
REGISTAR VRIJ.PAPIRA BiH 9,286 0 9,286 0
ZAVOD VSE BO V REDU 100,000 0 100,000 0
TOTAL 4,372,809 494,830 4,026,487 949,994

The Group did not sell any equity investments disclosed in other comprehensive income in 2024, whereas EUR 14,308,836 of such investments were sold in 2023. These investments were sold to manage market risks, primarily to reduce exposure to equities in local markets.

Equity securities of Zavarovalnica Triglav measured at fair value through other comprehensive income

in EUR
EQUITY SECURITIES AT FVOCI Carrying amount
31 Dec 2024		 Dividends
in 2024		 Carrying amount
31 Dec 2023		 Dividends
in 2023
ELEKTRO PRIMORSKA 2,899,910 101,160 2,641,391 0
KRKG SV 0 0 0 813,173
POSR SV 0 0 0 38,773
ZAVOD VSE BO V REDU 100,000 0 100,000 0
TOTAL 2,999,910 101,160 2,741,391 851,946

The Company did not sell any equity investments disclosed in other comprehensive income in 2024, whereas EUR 14,308,836 of such investments were sold in 2023.

Accounting report

joint ventures

3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in the financial statements

  1. Other information

Appendix

in EUR
FVOCI AC FVTPL TOTAL
As at 1 January 2023 1,634,153,515 241,005,029 682,024,472 2,557,183,016
Acquisitions 458,642,311 31,112,335 240,631,709 730,386,355
Disposals -262,526,538 -30,730 -232,167,933 -494,725,201
Maturities -255,221,278 -51,314,418 -6,952,198 -313,487,894
Measurement of financial investments through profit or loss 0 0 47,832,182 47,832,182
Measurement of financial investments at FVOCI 70,866,543 0 0 70,866,543
Impairment/reversal of impairment 1,926,962 364,796 0 2,291,758
Premiums and discounts -1,174,762 5,162,258 0 3,987,496
Interest income 26,691,815 3,278,149 1,140,837 31,110,801
Realised gains/losses in profit or loss -9,304,015 464 7,877,436 -1,426,115
Realised gains/losses in retained earnings 11,630,647 0 0 11,630,647
Exchange rate differences -2,718,268 -18,156 -72,394 -2,808,818
As at 31 December 2023 = 1 January 2024 1,672,966,932 229,559,727 740,314,111 2,642,840,770
Acquisitions 1,126,281,955 70,484,857 316,063,093 1,512,829,905
Disposals -371,137,662 0 -243,746,289 -614,883,951
Maturities -581,697,675 -85,865,313 -14,472,373 -682,035,361
Measurement of financial investments through profit or loss 0 0 75,788,017 75,788,017
Measurement of financial investments at FVOCI 26,595,012 0 0 26,595,012
Impairment/reversal of impairment 3,591,957 -257,689 0 3,334,268
Premiums and discounts 3,123,940 5,271,173 0 8,395,113
Interest income 34,405,209 3,339,335 1,147,039 38,891,583
Realised gains/losses in profit or loss -3,314,397 -335 30,986,687 27,671,955
Exchange rate differences 745,114 36,682 382,763 1,164,559
As at 31 December 2024 1,911,560,385 222,568,437 906,463,048 3,040,591,870

3.4.2 Movement in financial investments

Movement in financial investments of the Triglav Group

Movement in financial investments of Zavarovalnica Triglav

in EUR
FVOCI AC FVTPL TOTAL
As at 1 January 2023 1,220,117,377 151,767,346 587,842,211 1,959,726,934
Acquisitions 257,136,228 2,254,287 182,513,415 441,903,930
Disposals -251,103,185 -30,730 -167,905,407 -419,039,322
Maturities -142,067,068 -17,986,682 -1,462,566 -161,516,316
Measurement of financial investments through profit or loss 0 0 42,465,326 42,465,326
Measurement of financial investments at FVOCI 58,369,815 0 0 58,369,815
Impairment/reversal of impairment 1,394,621 96,281 0 1,490,902
Premiums and discounts -1,092,347 5,162,258 0 4,069,911
Interest income 15,874,934 1,576,777 780,662 18,232,374
Realised gains/losses in profit or loss -9,082,410 0 7,404,897 -1,677,513
Realised gains/losses in retained earnings 11,630,646 0 0 11,630,646
Exchange rate differences 1,178 3,769 -14,153 -9,206
As at 31 December 2023 = 1 January 2024 1,161,179,788 142,843,306 651,624,386 1,955,647,480
Acquisitions 799,855,035 32,447,720 289,323,962 1,121,626,717
Disposals -340,405,360 0 -221,444,146 -561,849,506
Maturities -359,469,332 -38,115,952 -6,009,888 -403,595,172
Measurement of financial investments through profit or loss 0 0 70,715,957 70,715,957
Measurement of financial investments at FVOCI 18,713,625 0 0 18,713,625
Impairment/reversal of impairment 2,764,350 -9,352 0 2,754,998
Premiums and discounts 2,981,387 5,271,173 0 8,252,560
Interest income 18,592,317 1,438,924 786,964 20,818,205
Realised gains/losses in profit or loss -2,543,756 0 30,585,949 28,042,194
Exchange rate differences 66,063 0 177,484 243,547
As at 31 December 2024 1,301,734,118 143,875,820 815,760,667 2,261,370,605

Accounting report

joint ventures

Appendix

3.4.3 Return on financial investments
-- -- -- -- --------------------------------------- --

Return on financial investments of the Triglav Group and Zavarovalnica Triglav

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Interest income calculated using the effective
interest method		 47,286,696 34,922,060 29,070,766 22,126,049
Dividend income 2,599,868 2,705,064 2,019,695 2,441,534
Net gains/losses on financial investments at FVOCI -3,314,398 -6,266,497 -2,543,756 -6,044,892
Realised gains 4,432,036 407,591 4,172,817 331,465
Realised losses -7,746,434 -6,674,088 -6,716,573 -6,376,357
Net gains/losses on financial investments at FVTPL 106,774,705 55,703,659 101,301,906 49,864,264
Realised gains 30,997,922 8,487,274 30,594,227 7,627,745
Realised losses -11,234 -615,797 -8,277 -228,807
Unrealised gains 78,253,663 52,042,824 73,169,971 46,136,429
Unrealised losses -2,465,646 -4,210,642 -2,454,014 -3,671,102
Net gains/losses on financial investments at AC -335 464 0 0
Net impairment/reversal of impairment 3,334,270 2,162,900 2,754,998 1,362,044
Impairment expenses -2,985,318 -1,872,528 -1,736,356 -1,014,851
Income from reversal of impairment 6,319,588 4,035,427 4,491,354 2,376,894
Other income and expenses from investing activities 3,065,770 -2,670,851 2,257,704 72,255
Income from positive exchange rate differences 952,730 39,119 236,723 30,871
Expenses from negative exchange rate differences -133,573 -2,847,937 -96,992 -40,078
Other income from financial investments 2,927,194 771,502 2,899,361 618,212
Other expenses from financial investments -680,581 -633,535 -781,388 -536,749
TOTAL RETURN ON FINANCIAL INVESTMENTS
including return on unit-linked insurance assets
(continuing operations)		 159,746,576 86,556,798 134,861,313 69,821,254
TOTAL RETURN ON FINANCIAL INVESTMENTS
including return on unit-linked insurance assets
(discontinued operations)		 0 -2.725.610 0 -2.725.610
TOTAL RETURN ON FINANCIAL INVESTMENTS
including return on unit-linked insurance assets		 159.746.576 83.831.188 134.861.313 67.095.644
in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Return on unit-linked insurance assets 98,008,220 49,559,643 95,175,748 46,224,967
Unrealised gains/losses on financial investments at fair value
through profit or loss		 67,385,697 42,815,347 64,754,722 39,604,254
Other income/expenses from unit-linked insurance assets 30,622,523 6,744,296 30,421,026 6,620,713

Accounting report

Statement of management's responsibilities Independent auditor's report

3. Notes to the specific significant items in

the financial statements 3.1 Insurance business 3.2 Reinsurance business 3.3 Investments in subsidiaries, associates and joint ventures

3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in the financial statements

  1. Other information

Appendix

3.4.4 Impairment of financial investments

Movement in ECL impairment of the Triglav Group

31 Dec 2024 31 Dec 2023
Gross carrying amount ECL adjustment Amortised cost Gross carrying amount ECL adjustment Amortised cost
Financial investments FVOCI 2,001,808,250 -3,123,402 1,998,684,848 1,797,038,900 -6,712,145 1,790,326,755
Debt securities at FVOCI 2,001,808,250 -3,123,402 1,998,684,848 1,797,038,900 -6,712,145 1,790,326,755
Financial investments AC 223,028,171 -1,349,261 221,678,910 229,768,093 -1,080,780 228,687,313
Debt securities at AC 154,328,236 -105,564 154,222,672 156,437,924 -103,391 156,334,533
Bank deposits 61,147,987 -314,438 60,833,549 65,856,652 -61,776 65,794,876
Loans 7,551,948 -929,259 6,622,689 7,473,517 -915,613 6,557,904
TOTAL 2,224,836,421 -4,472,663 2,220,363,758 2,026,806,993 -7,792,925 2,019,014,068
in EUR
Financial investments FVOCI Stage 1 Stage 2 Stage 3 TOTAL
Gross carrying amount as at 1 Jan 2023 1,811,810,158 8,116,516 7,982,754 1,827,909,428
Purchases 457,853,313 50,249 0 457,903,562
Disposals, maturities -513,595,844 -236,502 -192,625 -514,024,971
Interest 25,081,913 305,629 98,306 25,485,848
Transfer to Stage 1 -1,380,039 1,380,039 0 0
Transfer to Stage 2 774,724 -774,724 0 0
Other changes -234,375 -592 0 -234,967
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 1,780,309,850 8,840,615 7,888,435 1,797,038,900
Purchases 1,124,265,507 0 0 1,124,265,507
Disposals, maturities -948,710,320 -1,683,644 -7,888,435 -958,282,399
Interest 37,210,149 315,053 0 37,525,202
Transfer to Stage 1 1,516,881 -1,516,881 0 0
Transfer to Stage 2 -4,574,928 4,574,928 0 0
Other changes 1,258,889 2,151 0 1,261,040
Gross carrying amount as at 31 Dec 2024 1,991,276,028 10,532,222 0 2,001,808,250
in EUR
Financial investments AC Stage 1 Stage 2 Stage 3 TOTAL
Gross carrying amount as at 1 Jan 2023 240,084,610 495,350 946,366 241,526,326
Purchases 31,009,939 0 0 31,009,939
Disposals, maturities -51,095,442 0 -52,542 -51,147,984
Interest 8,356,856 2,901 0 8,359,757
Transfer to Stage 1 498,251 -498,251 0 0
Other changes 20,055 0 0 20,055
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 228,874,269 0 893,824 229,768,093
Purchases 71,326,450 0 0 71,326,450
Disposals, maturities -86,629,391 0 0 -86,629,391
Interest 8,598,704 0 0 8,598,704
Other changes -35,685 0 0 -35,685
Gross carrying amount as at 1 Jan 2024 222,134,347 0 893,824 223,028,171
in EUR
Financial investments FVOCI Stage 1 Stage 2 Stage 3 TOTAL
ECL adjustment as at 1 Jan 2023 -4,350,710 -509,265 -3,778,010 -8,637,985
Purchases -206,194 0 0 -206,194
Disposals, maturities 295,172 0 0 295,172
Change in ECL adjustment 1,495,582 92,377 248,490 1,836,449
Transfer to Stage 1 434 -434 0 0
Transfer to Stage 2 -182,339 182,339 0 0
Other changes 446 -30 0 416
ECL adjustment as at 31 Dec 2023 = 1 Jan 2024 -2,947,609 -235,013 -3,529,520 -6,712,142
Purchases -997,210 0 0 -997,210
Disposals, maturities 578,436 4,788 3,227,514 3,810,738
Change in ECL adjustment 589,761 -116,819 302,006 774,949
Transfer to Stage 1 -174,033 174,033 0 0
Transfer to Stage 2 109,147 -109,147 0 0
Other changes 263 0 0 263
ECL adjustment as at 31 December 2024 -2,841,245 -282,158 0 -3,123,402
in EUR
Financial investments AC Stage 1 Stage 2 Stage 3 TOTAL
ECL adjustment as at 1 Jan 2023 -491,099 -464 -964,482 -1,456,045
Purchases -88,105 0 0 -88,105
Disposals, maturities 24,587 0 48,908 73,495
Change in ECL adjustment 390,250 0 0 390,250
Transfer to Stage 1 -464 464 0 0
Other changes -375 0 0 -375
ECL adjustment as at 31 Dec 2023 = 1 Jan 2024 -165,206 0 -915,574 -1,080,780
Purchases -159,384 0 0 -159,384
Disposals, maturities 27,470 0 0 27,470
Change in ECL adjustment -136,567 0 0 -136,567
ECL adjustment as at 31 Dec 2024 -433,687 0 -915,574 -1,349,261

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
31 Dec 2024 31 Dec 2023
Gross carrying amount ECL adjustment Amortised cost Gross carrying amount ECL adjustment Amortised cost
Financial investments FVOCI 1,383,950,075 -1,973,342 1,381,976,734 1,265,699,097 -4,737,691 1,260,961,406
TOTAL 1,527,927,364 -2,074,811 1,525,852,554 1,408,634,520 -4,829,809 1,403,804,712
- Loans 5,320,252 -13,680 5,306,572 4,550,339 -2,700 4,547,639
- Bank deposits 7,214,042 -1,177 7,212,865 7,214,042 -1,678 7,212,364
- Debt securities at AC 131,442,995 -86,612 131,356,383 131,171,044 -87,740 131,083,304
Financial investments AC 143,977,289 -101,469 143,875,820 142,935,424 -92,118 142,843,306
- Debt securities at FVOCI 1,383,950,075 -1,973,342 1,381,976,734 1,265,699,097 -4,737,691 1,260,961,406
in EUR
Financial investments FVOCI Stage 1 Stage 2 Stage 3 TOTAL
Gross carrying amount as at 1 Jan 2023 1,372,462,483 2,749,311 5,918,470 1,381,130,264
Purchases 257,136,226 0 0 257,136,226
Disposals, maturities -387,107,159 -108,875 -135,125 -387,351,159
Interest 14,607,348 110,339 64,900 14,782,587
Transfer to Stage 1 -1,579,655 1,579,655 0 0
Transfer to Stage 2 1,790,589 -1,790,589 0 0
Other changes 1,178 0 0 1,178
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 1,257,311,010 2,539,842 5,848,245 1,265,699,097
Purchases 799,855,035 0 0 799,855,035
Disposals, maturities -696,889,199 -506,378 -5,848,245 -703,243,823
Interest 21,416,504 157,200 0 21,573,705
Transfer to Stage 1 1,516,881 -1,516,881 0 0
Transfer to Stage 2 -3,051,265 3,051,265 0 0
Other changes 66,063 0 0 66,063
Gross carrying amount as at 31 Dec 2024 1,380,225,029 3,725,047 0 1,383,950,076

Movement in ECL impairment of Zavarovalnica Triglav

All debt securities and deposits measured at amortised cost are classified into Stage 1. The movements in gross carrying amount and ECL adjustment are shown in the tables below.

in EUR
Financial investments AC TOTAL
Gross carrying amount as at 1 Jan 2023 151,955,745
Purchases 2,254,287
Disposals, maturities -18,017,412
Interest 6,739,035
Other changes 3,769
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 142,935,424
Purchases 32,851,754
Disposals, maturities -38,519,986
Interest 6,710,097
Gross carrying amount as at 31 Dec 2024 143,977,289
in EUR
Financial investments FVOCI Stage 1 Stage 2 Stage 3 TOTAL
ECL adjustment as at 1 Jan 2023 -2,992,871 -286,640 -2,852,801 -6,132,312
Purchases -10,727 0 0 -10,727
Disposals, maturities 272,945 0 0 272,945
Change in ECL adjustment 842,655 54,124 235,624 1,132,403
Transfer to Stage 2 2,549 -2,549 0 0
Transfer to Stage 3 -203,127 203,127 0 0
ECL adjustment as at 31 Dec 2023 = 1 Jan 2024 -2,088,576 -31,938 -2,617,177 -4,737,691
Purchases -854,420 0 0 -854,420
Disposals, maturities 441,719 2,816 2,324,535 2,769,069
Change in ECL adjustment 640,977 -83,919 292,642 849,700
Transfer to Stage 1 -174,056 174,056 0 0
Transfer to Stage 2 101,469 -101,469 0 0
ECL adjustment as at 31 Dec 2024 -1,932,888 -40,454 0 -1,973,342
in EUR
Debt securities at AC TOTAL
ECL adjustment as at 1 Jan 2023 -188,398
Purchases -272
Disposals, maturities 3,834
Change in ECL adjustment 92,982
Other changes -264
ECL adjustment as at 31 Dec 2023 = 1 Jan 2024 -92,118
Purchases -38,019
Disposals, maturities 17,851
Change in ECL adjustment 10,817
ECL adjustment as at 31 Dec 2024 -101,469

Accounting report

Appendix

3.5 Financial contract assets and liabilities

Assets and liabilities from financial contracts of the Triglav Group and Zavarovalnica Triglav

Financial contract assets and liabilities relate to the assets and liabilities of the pension insurance guarantee fund in the accumulation phase. A description of the guarantee fund is provided in Section 2.1.1.

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Financial investments from financial contracts 739,510,939 650,042,171 284,582,910 255,841,271
Receivables from financial contracts 405,599 123,066 314,486 83,130
Cash from financial contracts 15,090,620 23,949,908 5,946,434 3,699,640
Total financial contract assets 755,007,158 674,115,145 290,843,831 259,624,041
Liabilities to pension fund members 751,594,310 671,920,612 289,765,395 258,978,506
Other liabilities to pension funds 3,412,848 2,194,533 1,078,436 645,535
Total financial contract liabilities 755,007,158 674,115,145 290,843,831 259,624,041

3.5.1 Types of investments from financial contracts

Types of investments from financial contracts of the Triglav Group and Zavarovalnica Triglav

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Financial investments at AC 245,995,862 283,215,425 77,040,080 86,215,285
Debt securities and other fixed-income securities 245,995,862 283,215,425 77,040,080 86,215,285
Financial investments at fair value through profit or loss 493,515,077 366,826,746 207,542,830 169,625,986
Debt securities and other fixed-income securities 292,168,499 214,934,774 123,045,853 96,181,144
Equity securities 201,346,578 151,891,972 84,496,977 73,444,843
Total financial investments from financial contracts 739,510,939 650,042,171 284,582,910 255,841,271
Debt securities and other fixed-income securities 538,164,361 498,150,199 200,085,933 182,396,429
Equity securities 201,346,578 151,891,972 84,496,977 73,444,843
Receivables from financial contracts 405,599 123,066 314,486 83,130
Cash and cash equivalents from financial contracts 15,090,620 23,949,908 5,946,434 3,699,640
TOTAL ASSETS FROM FINANCIAL CONTRACTS 755,007,158 674,115,145 290,843,831 259,624,041

Accounting report

Statement of management's responsibilities Independent auditor's report

  1. Financial statements

  2. Notes to the financial statements

  3. Notes to the specific significant items in

the financial statements

3.4 Financial investments and their return

3.5 Financial contract assets and liabilities

3.6 Operating expenses

3.7 Notes to other significant items in the financial statements

  1. Other information

Appendix

in EUR
AC FVTPL TOTAL
As at 1 Jan 2023 321,859,990 267,173,099 589,033,089
Purchases 4,996,330 191,669,217 196,665,547
Disposals -12,551,545 -71,848,617 -84,400,162
Maturities -36,951,090 -50,717,595 -87,668,685
Measurement of investments through profit or loss 0 27,758,208 27,758,208
Impairment/reversal of impairment 309,953 0 309,953
Premiums and discounts 953,197 0 953,197
Interest income 5,326,428 3,571,662 8,898,090
Realised gains/losses in profit or loss -727,838 1,099,542 371,704
Exchange rate differences 0 -1,878,770 -1,878,770
As at 31 Dec 2023 = 1 Jan 2024 283,215,425 366,826,746 650,042,171
Purchases 2,002,667 260,245,624 262,248,291
Disposals -997,249 -94,030,155 -95,027,404
Maturities -43,776,079 -90,553,996 -134,330,075
Measurement of investments through profit or loss 0 35,295,311 35,295,311
Impairment/reversal of impairment 67,757 0 67,757
Premiums and discounts 819,392 0 819,392
Interest income 4,669,324 5,889,755 10,559,079
Realised gains/losses in profit or loss -5,375 4,441,130 4,435,755
Exchange rate differences 0 5,400,662 5,400,662
As at 31 Dec 2024 245,995,862 493,515,077 739,510,939

in EUR AC FVTPL TOTAL As at 1 Jan 2023 99,398,022 131,403,313 230,801,335 Purchases 991,330 78,805,001 79,796,331 Disposals -11,537,681 -41,126,379 -52,664,060 Maturities -4,228,490 -15,117,881 -19,346,371 Measurement of investments through profit or loss 0 14,115,103 14,115,103 Impairment/reversal of impairment 105,066 0 105,066 Premiums and discounts 953,197 0 953,197 Interest income 1,261,878 1,291,257 2,553,135 Realised gains/losses in profit or loss -728,037 1,245,601 517,564 Exchange rate differences 0 -990,029 -990,029 As at 31 Dec 2023 = 1 Jan 2024 86,215,285 169,625,986 255,841,271 Purchases 0 100,640,895 100,640,895 Disposals -997,249 -35,622,542 -36,619,791 Maturities -10,087,980 -50,734,046 -60,822,026 Measurement of investments through profit or loss 0 14,856,036 14,856,036

Movement in investments from financial contracts of Zavarovalnica Triglav

Impairment/reversal of impairment 50,335 0 50,335 Premiums and discounts 819,392 0 819,392 Interest income 1,045,672 1,865,817 2,911,488 Realised gains/losses in profit or loss -5,375 4,344,983 4,339,609 Exchange rate differences 0 2,565,700 2,565,700 As at 31 Dec 2024 77,040,080 207,542,830 284,582,910

3.5.3 Return on investments from financial contracts

3.5.2 Movement in investments from financial contracts

Movement in investments from financial contracts of the Triglav Group

Return on investments from financial contracts of the Triglav Group and Zavarovalnica Triglav

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Interest income calculated using the effective interest method 11,378,471 9,851,287 3,730,881 3,506,332
Dividend income 2,120,211 1,700,237 923,398 920,242
Net gains and losses on financial investments 39,731,067 28,129,912 19,195,645 14,632,667
Realised gains/losses 4,435,756 371,704 4,339,609 517,564
Unrealised gains/losses 35,295,311 27,758,208 14,856,036 14,115,103
Net impairment and reversal of impairment of financial investments 67,757 309,953 50,335 105,066
Other investment income/expenses 11,219,436 -1,355,387 2,772,948 -1,362,012
Exchange rate differences 5,623,998 -1,878,770 2,789,036 -990,029
Other investment income/expenses 5,595,438 523,383 -16,089 -371,983
TOTAL RETURN ON INVESTMENTS FROM FINANCIAL CONTRACTS 64,516,942 38,636,002 26,673,205 17,802,295

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292

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Accounting report

3.4 Financial investments and their return 3.5 Financial contract assets and liabilities

Appendix

3.5.4 Impairment of investments from financial contracts

Movement in ECL impairment of investments from financial contracts of the Triglav Group

in EUR
31 Dec 2024 31 Dec 2023
Gross ECL
adjustment		 Carrying
amount		 Gross ECL
adjustment		 Carrying
amount
Debt securities at AC 246,237,499 -241,636 245,995,863 283,524,818 -309,392 283,215,426
TOTAL 246,237,499 -241,636 245,995,863 283,524,818 -309,392 283,215,426

All financial investments from financial contracts are classified in Stage 1. The movements in gross carrying amount and ECL adjustments are shown in the tables below.

in EUR
Debt securities at AC Gross carrying amount ECL adjustment
Gross carrying amount as at 1 Jan 2023 322,479,336 -619,345
Purchases 4,996,330 -1,472
Disposals, maturities -50,230,672 6,917
Interest 6,279,625 0
Change in ECL adjustment 0 304,508
Other changes 199 0
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 283,524,818 -309,392
Purchases 2,002,667 0
Disposals, maturities -44,778,702 920
Interest 5,488,716 0
Change in ECL adjustment 0 66,836
Gross carrying amount as at 31 Dec 2024 246,237,499 -241,636

Movement in ECL impairment of investments from financial contracts of Zavarovalnica Triglav

in EUR
31 Dec 2024 31 Dec 2023
Gross ECL
adjustment		 Carrying
amount		 Gross ECL
adjustment		 Carrying
amount
Debt securities at AC 77,133,762 -93,681 77,040,080 86,359,301 -144,016 86,215,285
TOTAL 77,133,762 -93,681 77,040,080 86,359,301 -144,016 86,215,285

All financial investments from financial contracts are classified in Stage 1. The movements in gross carrying amount and ECL adjustments are shown in the tables below.

in EUR
Gross ECL adjustment
99,647,104 -249,082
991,330 -1,472
-16,494,208 6,917
2,215,075 0
0 99,621
86,359,301 -144,016
-11,090,604 921
1,865,064 0
0 49,414
77,133,762 -93,681

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.5.5 Financial contract liabilities
in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Liabilities to PDPZ zajamčeni fund members 530,844,279 520,589,186 195,877,632 193,561,131
Liabilities to PDPZ zmerni, mešani fund members 100,751,416 74,253,819 42,180,709 31,243,232
Liabilities to PDPZ drzni, delniški fund members 119,998,615 77,077,607 51,707,054 34,174,144
Other financial contract liabilities 3,412,850 2,194,534 1,078,436 645,535
TOTAL 755,007,160 674,115,146 290,843,831 259,624,041

The guaranteed amount of the Triglav Group's liabilities to PDPZ zajamčeni fund members as at 31 December 2024 was EUR 512,963,078 (31 December 2023: EUR 510,158,978), and the guaranteed amount of Zavarovalnica Triglav's liabilities to PDPZ zajamčeni fund members as at 31 December 2024 was EUR 183,562,020 (31 December 2023: EUR 185,011,650).

Financial contract liabilities of the Triglav Group

in EUR
PDPZ
zajamčeni		 PDPZ
zmerni, mešani		 PDPZ
drzni, delniški		 TOTAL
As at 1 Jan 2023 503,435,563 57,046,617 51,223,462 611,705,642
Fund inflows 34,177,292 9,235,540 16,394,378 59,807,210
Fund outflows -29,790,950 -618,053 -331,450 -30,740,453
Investment return of funds 19,083,765 8,933,738 10,618,870 38,636,373
Expenses for fund fees -5,670,128 -758,553 -822,686 -7,251,367
Other fund expenses and costs -144,836 -40,207 -51,750 -236,793
Transfers between funds -501,520 454,737 46,783 0
As at 31 Dec 2023 = 1 Jan 2024 520,589,186 74,253,819 77,077,607 671,920,612
Fund inflows 32,235,891 9,719,100 19,052,677 61,007,668
Fund outflows -31,767,417 -834,031 -752,557 -33,354,005
Investment return of funds 20,794,985 17,355,877 26,366,080 64,516,942
Expenses for fund fees -5,797,958 -1,006,789 -1,224,394 -8,029,141
Other fund expenses and costs -159,764 -63,787 -84,030 -307,581
Transfers between funds -5,050,644 1,327,227 -436,768 -4,160,185
As at 31 Dec 2024 530,844,279 100,751,416 119,998,615 751,594,310

Financial contract liabilities of Zavarovalnica Triglav

in EUR
PDPZ
zajamčeni		 PDPZ
zmerni		 PDPZ
drzni		 TOTAL
As at 1 Jan 2023 188,171,802 23,385,516 22,897,307 234,454,625
Fund inflows 11,969,656 3,460,000 6,123,518 21,553,174
Fund outflows -11,628,350 -188,425 -127,595 -11,944,370
Investment return of funds 7,756,092 4,473,268 5,573,304 17,802,664
Expenses for fund fees -2,162,042 -321,998 -370,686 -2,854,726
Other fund expenses and costs 0 -16,348 -16,511 -32,859
Transfers between funds -546,026 451,219 94,807 0
As at 31 Dec 2023 = 1 Jan 2024 193,561,131 31,243,232 34,174,144 258,978,506
Fund inflows 10,724,310 3,465,182 6,616,135 20,805,627
Fund outflows -12,630,315 -445,592 -416,124 -13,492,031
Investment return of funds 8,729,355 7,134,107 10,809,744 26,673,206
Expenses for fund fees -2,190,826 -427,449 -539,775 -3,158,050
Other fund expenses and costs 0 -19,654 -22,209 -41,863
Transfers between funds -2,316,023 1,230,883 1,085,140 0
As at 31 Dec 2024 195,877,632 42,180,709 51,707,054 289,765,395

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Appendix

3.5.5.1 Maturity of liabilities to pension fund members of the Triglav Group

The undiscounted expected future cash flows from financial contract liabilities are equal to the carrying amount of the Group's liabilities. Their expected maturity at 31 December 2024 and 31 December 2023 is shown below.

3.5.5.2 Maturity of liabilities to pension fund members of Zavarovalnica Triglav

The undiscounted expected future cash flows from financial contract liabilities are equal to the carrying amount of the Company's liabilities. Their expected maturity at 31 December 2024 and 31 December 2023 is shown below.

in EUR
31 Dec 2024 < 1 year 1–5 years 5–10 years > 10 years TOTAL
Liabilities to PDPZ zajamčeni fund members 9,449,004 45,226,931 76,416,981 399,751,363 530,844,279
Liabilities to PDPZ zmerni, mešani fund members 1,556,079 8,947,339 15,810,382 74,437,616 100,751,416
Liabilities to PDPZ drzni, delniški fund members 4,939,119 23,782,904 33,026,250 58,250,342 119,998,615
TOTAL 15,944,202 77,957,174 125,253,613 532,439,321 751,594,310
in EUR
31 Dec 2024 < 1 year 1–5 year 5–10 year > 10 year TOTAL
Liabilities to PDPZ zajamčeni fund members 4,260,191 19,761,426 30,500,920 141,355,095 195,877,632
Liabilities to PDPZ zmerni fund members 821,012 4,378,773 7,495,834 29,485,090 42,180,709
Liabilities to PDPZ drzni fund members 2,402,997 11,415,221 14,927,474 22,961,361 51,707,054
TOTAL 7,484,200 35,555,420 52,924,229 193,801,546 289,765,395
TOTAL 12,294,913 63,648,311 107,802,945 488,174,443 671,920,612
Liabilities to PDPZ drzni, delniški fund members 2,350,752 12,880,950 20,744,707 41,101,198 77,077,607
Liabilities to PDPZ zmerni, mešani fund members 899,250 5,784,258 11,131,209 56,439,102 74,253,819
Liabilities to PDPZ zajamčeni fund members 9,044,911 44,983,103 75,927,029 390,634,143 520,589,186
31 Dec 2023 < 1 year 1–5 years 5–10 years > 10 years TOTAL
in EUR
in EUR
31 Dec 2023 < 1 year 1–5 year 5–10 year > 10 year TOTAL
Liabilities to PDPZ zajamčeni fund members 3,834,771 18,606,355 29,568,623 141,551,382 193,561,131
Liabilities to PDPZ zmerni fund members 420,828 2,659,441 4,842,199 23,320,763 31,243,232
Liabilities to PDPZ drzni fund members 1,095,068 6,030,153 9,278,992 17,769,931 34,174,144
TOTAL 5,350,667 27,295,949 43,689,814 182,642,076 258,978,506

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.6 Operating expenses

Operating expenses of Triglav Group

in EUR
2024 Attributable
acquisition costs		 Attributable claim
handling expenses		 Attributable
administrative costs		 Non-attributable
expenses of
insurance companies		 Expenses of
non-insurance
companies		 TOTAL
OPERATING EXPENSES 235,989,740 29,527,952 83,998,154 56,064,132 58,273,057 463,853,035
Acquisition costs 107,309,221 -72 86,752 387,090 0 107,782,991
Depreciation costs 3,243,559 268,178 1,567,759 18,538,975 3,709,048 27,327,519
Depreciation costs of leased assets 2,730,736 250,209 777,517 1,032,466 1,263,340 6,054,268
Depreciation costs of other operating assets 512,823 17,969 790,242 17,506,509 2,445,708 21,273,251
Labour costs 94,319,744 22,636,733 56,136,991 10,185,427 23,219,337 206,498,232
Wages and salaries 68,575,002 15,781,649 36,673,258 6,313,410 16,494,892 143,838,211
Social and pension insurance costs 14,037,784 3,493,523 8,158,849 1,323,708 4,191,575 31,205,439
Other labour costs 11,706,958 3,361,561 11,304,884 2,548,309 2,532,870 31,454,582
Costs of services 31,117,216 6,623,113 26,206,652 26,952,640 31,292,214 122,191,835
Costs of entertainment, advertising and trade shows 11,106,200 26,872 163,435 12,242,240 2,197,282 25,736,029
Maintenance costs 4,321,299 1,193,249 8,631,171 765,699 1,962,462 16,873,880
Costs of materials and energy 3,488,146 856,191 1,424,013 394,753 2,360,980 8,524,083
Costs of payment transactions and banking services 583,523 983 1,466,984 45,827 283,871 2,381,188
Insurance premium costs 233,433 26,219 215,250 1,142,696 456,186 2,073,784
Costs of intellectual services 314,051 706,946 1,012,138 5,572,377 1,861,135 9,466,647
Training costs 357,602 107,724 460,309 439,236 339,473 1,704,344
Expenses for short-term leases, low-value leases and other leases 1,950,180 619,864 4,876,787 487,103 1,462,369 9,396,303
Costs of transport and communications services 2,698,810 468,565 1,673,032 216,591 483,730 5,540,728
Reimbursement of labour-related costs 2,855,713 160,355 806,347 505,067 1,268,869 5,596,351
Costs of services provided by natural persons other than sole proprietors 484,445 558,772 469,531 99,691 573,892 2,186,331
Other costs of services 2,723,814 1,897,373 5,007,655 5,041,360 18,041,965 32,712,167
Cost of goods sold 0 0 0 0 52,458 52,458
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES 214,163 7,007,582 23,231,068 0 0 30,452,813
CHANGE IN DEFERRED ACQUISITION COSTS -27,435,542 0 0 0 0 -27,435,542
EXPENSES BEFORE ELIMINATION OF INTERCOMPANY TRANSACTIONS 208,768,361 36,535,534 107,229,222 56,064,132 58,273,057 466,870,306
Elimination of intercompany transactions -1,022,550 0 -1,851,303 -10,700,778 -2,448,583 -16,023,214
Total expenses from continuing operations 207,745,811 36,535,534 105,377,919 45,363,354 55,824,474 450,847,092
Expenses from discontinued operations -38,105 -7,813 -894,984 -236,860 0 -1,177,761
TOTAL 207,707,707 36,527,721 104,482,935 45,126,494 55,824,474 449,669,331

Accounting report

Statement of management's responsibilities Independent auditor's report

joint ventures

3.6 Operating expenses

Appendix

in EUR
2023 Attributable
acquisition costs		 Attributable claim
handling expenses		 Attributable
administrative costs		 Non-attributable
expenses of insurance
companies		 Expenses of
non-insurance
companies		 TOTAL
OPERATING EXPENSES 214,668,318 29,992,668 83,801,833 55,217,194 50,425,262 434,105,275
Acquisition costs 92,612,498 864 0 53,564 0 92,666,926
Depreciation costs 2,303,426 381,862 1,357,867 19,049,560 3,198,951 26,291,666
Depreciation costs of leased assets 1,736,408 268,129 775,675 2,747,465 1,171,335 6,699,012
Depreciation costs of other operating assets 567,018 113,733 582,192 16,302,095 2,027,616 19,592,654
Labour costs 90,886,243 23,014,544 54,812,664 9,186,033 20,048,116 197,947,600
Wages and salaries 65,040,590 15,777,470 35,874,972 5,917,707 14,169,110 136,779,849
Social and pension insurance costs 13,312,820 3,473,736 7,967,360 1,230,325 3,795,528 29,779,769
Other labour costs 12,532,833 3,763,338 10,970,332 2,038,001 2,083,478 31,387,982
Costs of services 28,866,151 6,595,398 27,631,302 26,928,037 27,243,481 117,264,369
Costs of entertainment, advertising and trade shows 8,133,825 19,067 172,839 13,607,741 1,677,006 23,610,478
Maintenance costs 4,463,095 1,204,444 9,006,364 554,279 1,494,339 16,722,521
Costs of materials and energy 4,381,093 1,000,413 1,656,737 398,952 2,609,989 10,047,184
Costs of payment transactions and banking services 675,772 10,958 1,585,406 33,313 244,828 2,550,277
Insurance premium costs 178,942 16,150 240,475 1,362,478 315,692 2,113,737
Costs of intellectual services 289,576 606,173 1,017,448 4,840,609 2,649,787 9,403,593
Training costs 363,077 136,539 545,787 274,856 239,061 1,559,320
Expenses for short-term leases, low-value leases and other leases 1,656,454 717,901 4,476,567 464,788 961,060 8,276,770
Costs of transport and communications services 2,784,319 536,092 2,566,509 141,165 431,208 6,459,293
Reimbursement of labour-related costs 3,049,244 150,510 734,771 492,654 1,169,362 5,596,541
Costs of services provided by natural persons other than sole proprietors 316,582 554,606 491,375 161,818 546,427 2,070,808
Other costs of services 2,574,172 1,642,545 5,137,024 4,595,384 14,904,722 28,853,847
Cost of goods sold 0 0 0 0 -65,286 -65,286
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES 213,309 3,844,303 19,534,686 203,396 0 23,795,694
CHANGE IN DEFERRED ACQUISITION COSTS -13,616,542 0 0 0 0 -13,616,542
EXPENSES BEFORE ELIMINATION OF INTERCOMPANY TRANSACTIONS 201,265,085 33,836,971 103,336,519 55,420,590 50,425,262 444,284,427
Elimination of intercompany transactions -1,080,481 0 -1,511,838 -10,469,734 -2,207,647 -15,269,700
Total expenses from continuing operations 200,184,604 33,836,971 101,824,681 44,950,856 48,217,615 429,014,727
Expenses from discontinued operations -884,790 -101,233 -12,441,022 -2,043,895 0 -15,470,939
TOTAL 199,299,814 33,735,738 89,383,659 42,906,961 48,217,615 413,543,788

Among other service costs, the Group mainly discloses expenses for fund fees, which amounted to EUR 12,965,384 in 2024 (2023: EUR 9,984,023), costs of computer services, which amounted to EUR 3,671,481 in 2024 (2023: EUR 3,211,758), and costs of property protection services, which amounted to EUR 1,775,646 in 2024 (2023: EUR 1,675,798).

Business report Operating expenses of Zavarovalnica Triglav

Accounting report

Statement of management's responsibilities Independent auditor's report

3.7 Notes to other significant items in

the financial statements 4. Other information

in EUR
2024 Attributable
acquisition costs		 Attributable claim
handling expenses		 Attributable
administrative costs		 Non-attributable
expenses		 TOTAL
OPERATING EXPENSES 160,089,322 20,951,540 61,253,609 43,967,252 286,261,724
Acquisition costs 72,552,146 0 86,959 44,343 72,683,448
Depreciation costs 728,991 135,045 322,991 16,437,887 17,624,914
Depreciation costs of leased assets 728,991 135,045 322,991 265,121 1,452,148
Depreciation costs of other operating assets 0 0 0 16,172,766 16,172,766
Labour costs 70,805,120 17,039,668 41,158,589 8,131,010 137,134,387
Wages and salaries 51,836,542 11,986,372 26,533,061 5,690,503 96,046,478
Social and pension insurance costs 8,779,257 2,049,518 4,542,987 999,031 16,370,792
Other labour costs 10,189,321 3,003,778 10,082,541 1,441,476 24,717,117
Costs of services 16,003,065 3,776,827 19,685,070 19,354,013 58,818,975
Costs of entertainment, advertising and trade shows 2,859,876 143 6,341 8,661,576 11,527,936
Maintenance costs 3,182,062 969,250 6,933,220 687,991 11,772,523
Costs of materials and energy 1,869,151 613,609 841,632 343,050 3,667,441
Costs of payment transactions and banking services 363,970 -607 1,003,914 31,610 1,398,887
Insurance premium costs 1,209 270 159,419 718,477 879,375
Costs of intellectual services 150,772 76,753 494,698 4,276,052 4,998,275
Training costs 313,904 95,838 368,059 205,586 983,386
Expenses for short-term leases, low-value leases and other leases 1,452,164 532,156 4,622,461 452,518 7,059,300
Costs of transport and communications services 2,048,158 372,808 1,154,606 167,681 3,743,253
Reimbursement of labour-related costs 2,336,996 86,946 488,703 324,129 3,236,774
Costs of services provided by natural persons other than sole proprietors 134,564 374,462 208,327 47,942 765,295
Other costs of services 1,290,239 655,200 3,403,689 3,437,400 8,786,529
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES 0 6,334,266 21,802,785 0 28,137,051
CHANGE IN DEFERRED ACQUISITION COSTS -18,183,073 0 0 0 -18,183,073
Total expenses from continuing operations 141,906,249 27,285,806 83,056,394 43,967,252 296,215,701
Expenses from discontinued operations -38,105 -7,813 -894,984 -236,860 -1,177,761
TOTAL 141,868,145 27,277,993 82,161,410 43,730,393 295,037,940

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

Attributable Attributable claim Attributable Non-attributable in EUR
2023 acquisition costs handling expenses administrative costs expenses TOTAL
OPERATING EXPENSES 145,759,077 22,300,740 63,059,850 41,688,160 272,807,828
Acquisition costs 58,537,921 0 0 24,721 58,562,642
Depreciation costs 690,797 134,450 301,196 16,026,566 17,153,009
Depreciation costs of leased assets 690,797 134,450 301,196 1,082,915 2,209,358
Depreciation costs of other operating assets 0 0 0 14,943,651 14,943,651
Labour costs 70,053,941 18,131,766 41,064,340 8,109,019 137,359,065
Wages and salaries 50,475,155 12,515,837 26,970,188 5,619,542 95,580,722
Social and pension insurance costs 8,556,185 2,139,337 4,513,084 981,538 16,190,145
Other labour costs 11,022,601 3,476,591 9,581,068 1,507,938 25,588,198
Costs of services 16,476,419 4,034,525 21,694,314 17,527,854 59,733,112
Costs of entertainment, advertising and trade shows 3,220,472 231 15,143 7,564,559 10,800,405
Maintenance costs 3,194,786 984,778 7,564,086 541,176 12,284,826
Costs of materials and energy 2,150,167 723,522 1,063,296 378,742 4,315,727
Costs of payment transactions and banking services 471,252 7,775 1,200,050 20,151 1,699,227
Insurance premium costs 1,057 734 208,365 1,006,081 1,216,238
Costs of intellectual services 94,565 44,721 450,209 3,633,620 4,223,115
Training costs 313,850 127,053 435,181 187,254 1,063,338
Expenses for short-term leases, low-value leases and other leases 1,150,809 642,242 4,244,303 455,813 6,493,167
Costs of transport and communications services 1,950,947 428,198 2,166,345 137,250 4,682,740
Reimbursement of labour-related costs 2,584,457 91,388 462,284 287,061 3,425,190
Costs of services provided by natural persons other than sole proprietors 71,709 387,969 269,153 141,840 870,671
Other costs of services 1,272,348 595,913 3,615,901 3,174,307 8,658,468
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES 0 2,817,346 19,338,880 7,170 22,163,397
CHANGE IN DEFERRED ACQUISITION COSTS -9,689,300 0 0 0 -9,689,300
Total expenses from continuing operations 136,069,777 25,118,086 82,398,730 41,695,330 285,281,925
Expenses from discontinued operations -884,790 -101,233 -12,441,022 -2,043,895 -15,470,939
TOTAL 135,184,988 25,016,853 69,957,708 39,651,435 269,810,985

In addition to costs of salaries, the Company set aside provisions for employee bonuses, In addition to employees' salaries, contributions charged to the employer are taken into account when creating provisions, Total provisions created for 2024 amounted to EUR 17,566,414 (2023: EUR 5,000,000).

Accounting report

Statement of management's responsibilities Independent auditor's report

3.7 Notes to other significant items in the financial statements

3.7.1 Property, plant and equipment

Movement in property, plant and equipment of the Triglav Group

in EUR
Land Buildings Equipment PPE
in acquisition		 TOTAL
COST
As at 1 Jan 2023 11,435,909 125,749,573 69,989,866 627,117 207,802,465
Transfer in use 0 503,021 1,521,192 -2,024,213 0
Acquisitions 10,506 272,660 4,142,852 3,049,180 7,475,198
Disposals 0 -1,311,669 -1,108,292 0 -2,419,961
Write-offs 0 -562 -3,346,490 0 -3,347,052
Other changes 94,383 -1,057,416 -55,158 -299,208 -1,317,399
As at 31 De 2023 = 1 Jan 2024 11,540,798 124,155,607 71,143,970 1,352,876 208,193,251
Transfer to use 0 390,192 1,397,540 -1,787,732 0
Acquisitions 0 490,290 5,248,599 4,364,647 10,103,536
Disposals -13,542 -649,237 -1,963,715 0 -2,626,494
Write-offs 0 0 -3,773,099 0 -3,773,099
Other changes -132,430 -4,676,278 106,240 391,496 -4,310,972
As at 31 Dec 2024 11,394,826 119,710,574 72,159,535 4,321,287 207,586,222
ACCUMULATED DEPRECIATION
As at 1 Jan 2023 0 -45,616,919 -52,319,710 0 -97,936,629
Depreciation 0 -2,449,618 -5,911,868 0 -8,361,486
Disposals 0 265,803 851,584 0 1,117,387
Write-offs 0 0 3,266,280 0 3,266,280
Other changes 0 424,040 125,966 0 550,006
As at 31 Dec 2023 = 1 Jan 2024 0 -47,376,694 -53,987,748 0 -101,364,442
Depreciation 0 -2,438,234 -5,312,677 0 -7,750,911
Disposals 0 257,991 1,795,561 0 2,053,552
Write-offs 0 5,094 3,625,658 0 3,630,752
Other changes 0 1,651,687 60,330 0 1,712,017
As at 31 Dec 2024 0 -47,900,156 -53,818,876 0 -101,719,032
CARRYING AMOUNT
As at 1 January 2023 11,435,909 80,132,654 17,670,156 627,117 109,865,836
As at 31 December 2023 = 1 January 2024 11,540,798 76,778,913 17,156,222 1,352,876 106,828,809
As at 31 December 2024 11,394,826 71,810,418 18,340,659 4,321,287 105,867,185

Other changes mainly relate to the transfer of property, plant and equipment to investment property.

The Group has no property, plant and equipment pledged as collateral for liabilities. It also has no financial liabilities related to the purchase of property, plant and equipment.

The depreciation rates used for buildings range between 1.5% and 5%, the depreciation rate for computer equipment was 50% and for other equipment it ranged between 6.7% and 25%. Depreciation rates did not change in 2024 compared to the previous year.

Cost of fully depreciated assets still in use represents 18% of total cost of all assets used (31 December 2023: 18.12%).

In 2024, the Group assessed the existence of possible signs of impairment of land, buildings and equipment, Signs of impairment were identified in several real properties, which were subsequently impaired. The impairment of EUR 122,471 is shown under "Other changes" in movement in property, plant and equipment.

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Land Buildings Equipment in acquisition TOTAL
COST
As at 1 Jan 2023 6,076,598 85,165,692 46,558,506 410,704 138,211,500
Transfer to use 0 503,021 838,567 -1,341,588 0
Acquisitions 10,506 194,514 2,743,731 2,124,266 5,073,017
Disposals 0 -777,960 -209,816 0 -987,776
Write-offs 0 0 -2,699,880 0 -2,699,880
Other changes -201,054 -1,112,976 0 -197,035 -1,511,065
As at 31 Dec 2023 = 1 Jan 2024 5,886,050 83,972,291 47,231,109 996,347 138,085,797
Transfer to use 0 149,430 895,973 -1,045,403 0
Acquisitions 0 329,349 3,748,048 361,098 4,438,495
Disposals -13,542 -406,445 -241,032 0 -661,019
Write-offs 0 0 -3,390,366 0 -3,390,366
Other changes -117,683 -3,263,272 0 0 -3,380,955
As at 31 Dec 2024 5,754,826 80,781,353 48,243,732 312,042 135,091,953
ACCUMULATED DEPRECIATION
As at 1 Jan 2023 0 -32,126,143 -35,164,997 0 -67,291,140
Depreciation 0 -1,446,995 -3,926,834 0 -5,373,829
Disposals 0 213,411 172,491 0 385,902

Movement in property, plant and equipment of Zavarovalnica Triglav

Write-offs 0 0 2,669,282 0 2,669,282
Other changes 0 377,096 0 0 377,096
As at 31 Dec 2023 = 1 Jan 2024 0 -32,982,631 -36,250,059 0 -69,232,690
Depreciation 0 -1,432,859 -3,604,463 0 -5,037,322
Disposals 0 138,142 227,778 0 365,919
Write-offs 0 0 3,378,724 0 3,378,724
Other changes 0 1,493,929 0 0 1,493,929
As at 31 Dec 2024 0 -32,783,420 -36,248,020 0 -69,031,439
CARRYING AMOUNT
As at 1 January 2023 6,076,598 53,039,549 11,393,509 410,704 70,920,360
As at 31 December 2023 = 1 January 2024 5,886,050 50,989,660 10,981,050 996,347 68,853,107
As at 31 December 2024 5,754,826 47,997,933 11,995,712 312,043 66,060,514

Other changes mainly relate to the transfer of property, plant and equipment to investment property.

The Company has no property, plant and equipment pledged as collateral for liabilities. It also has no financial liabilities related to the purchase of property, plant and equipment.

The depreciation rates used for buildings range between 1.5% and 5%, the depreciation rate for computer equipment was 50% and for other equipment it ranged between 6.7% and 25%, Depreciation rates did not change in 2024 compared to the previous year.

Cost of fully depreciated assets still in use represents 20.42% of total cost of all assets used (31 December 2023: 19.98%).

In 2024, the Company assessed the existence of possible signs of impairment of land, buildings and equipment. No signs of impairment were identified.

Determining the fair value of the Group's and the Company's real property

The fair value of real property was determined based on valuations performed as at 30 September 2024 by an external certified real estate valuer in accordance with the guidelines described in Section 2.5.10. When preparing the financial statements as at 31 December 2024, the management performed a re-assessment and concluded that there were no changes between the valuation date and the reporting date that would significantly affect the fair value of real property. For the purposes of real property valuation, the suitability of using all valuation methods provided by the International Valuation Standards was checked. Considering the results of the real property market analysis as well as taking into consideration the purpose of valuation and the characteristics of specific valued real property, the following were used in valuation:

  • the market approach (the comparable transaction method),
  • the income approach (the income capitalisation approach) and
  • the land residual method.

in EUR

PPE

In the comparable transaction method, fair value was estimated based on market data derived from comparable transactions with similar real property.

When using the income capitalisation method, the fair value of Slovenian real property was estimated using a discount rate ranging between 8% and 9.50% for commercial buildings. The rate was determined using the market analysis method and further verified using the build-up method. Residential buildings were valued using the comparable sales method due to sufficient market evidence in local markets. The following assumptions were taken into account in the calculation of the capitalisation rate:

  • the 0.22% risk-free rate of return in real terms, taking into account the yield on a 10-year Slovenian government bond of 2.22% and the European Central Bank's long-term inflation target of 2.0%;
  • the real estate risk premium of 5.0–7.0%;
  • the capital retention premium of 1.56% (according to Hoskold) (in the case of an estimated age of office property of 60 years),

When using the income capitalisation method, the fair value of real property abroad was estimated using a discount rate ranging between 7.75% and 15.0%, and was also calculated using the market analysis method. The rate was verified using a build-up method (a three-part model), in which the following assumptions were used:

  • the real risk-free rate of return of 0.00–6.78%, taking into account the yield on a 10-year German government bond (2.13%), the country risk premium (2.33–7.94%) and the current and projected inflation rate for the country in which real property is located;
  • the real estate risk premium of 6.25%;
  • the capital retention premium of 0.13–1.67% (in the case of an estimated age of office property of 60 years).

The fair values of the Group's and the Company's real property exceed their carrying amounts.

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Appendix

in EUR
Land Buildings Property
in acquisition		 TOTAL
COST
As at 1 Jan 2023 7,938,934 66,000,127 12,000,271 85,939,332
Transfer to use 0 1,687,420 -1,687,420 0
Acquisitions 0 183,744 1,731,816 1,915,560
Disposals -102,108 -1,146,824 -37,049 -1,285,981
Other changes -185 -247,132 0 -247,317
As at 31 Dec 2023 = 1 Jan 2024 7,836,641 66,477,335 12,007,618 86,321,594
Transfer to use 0 3,322,870 -3,322,870 0
Acquisitions 0 268,794 2,376,031 2,644,825
Disposals -73,971 -2,920,457 0 -2,994,428
Other changes 121,425 4,903,349 -199 5,024,577
As at 31 Dec 2024 7,884,097 72,051,891 11,060,580 90,996,568
ACCUMULATED DEPRECIATION
As at 1 Jan 2023 0 -17,613,845 0 -17,613,845
Depreciation 0 -1,434,129 0 -1,434,129
Disposals 0 667,231 0 667,231

3.7.2 Investment property

CARRYING AMOUNT

Movement in investment property of the Triglav Group

Movement in investment property of Zavarovalnica Triglav

in EUR
Land Buildings Property
in acquisition		 TOTAL
COST
As at 1 Jan 2023 3,513,228 39,708,804 11,929,734 55,151,766
Transfer to use 0 1,405,389 -1,405,389 0
Acquisitions 0 183,744 1,439,138 1,622,883
Disposals -102,108 -986,853 0 -1,088,961
Other changes -185 -227,670 0 -227,855
As at 31 Dec 2023 = 1 Jan 2024 3,410,935 40,083,414 11,963,484 55,457,833
Transfer to use 0 2,947,189 -2,947,189 0
Acquisitions 0 267,735 1,747,843 2,015,578
Disposals -73,971 -2,238,829 0 -2,312,800
Other changes 117,683 3,263,272 0 3,380,955
As at 31 Dec 2024 3,454,647 44,322,781 10,764,138 58,541,567
ACCUMULATED DEPRECIATION
As at 1 Jan 2023 0 -11,774,594 0 -11,774,594
Depreciation 0 -972,822 0 -972,822
Disposals 0 713,890 0 713,890
Other changes 0 2,873 0 2,873
As at 31 Dec 2023 = 1 Jan 2024 0 -12,030,652 0 -12,030,652
Depreciation 0 -1,026,420 0 -1,026,420
Disposals 0 980,578 0 980,578
Other changes 0 -1,493,929 0 -1,493,929
As at 31 Dec 2024 0 -13,570,422 0 -13,570,422
CARRYING AMOUNT
As at 1 January 2023 3,513,228 27,934,210 11,929,734 43,377,172
As at 31 December 2023 = 1 January 2024 3,410,935 28,052,761 11,963,484 43,427,181
As at 31 December 2024 3,454,647 30,752,359 10,764,138 44,971,145

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The Group has no investment property pledged as collateral for liabilities. It also has no financial liabilities related to the purchase of investment property. Investment property owned by the Group was not obtained with state support.

As at 1 January 2023 7,938,934 48,386,282 12,000,271 68,325,487 As at 31 December 2023 = 1 January 2024 7,836,641 48,109,514 12,007,618 67,953,773 As at 31 December 2024 7,884,097 51,466,693 11,060,580 70,411,373

Other changes 0 12,922 0 12,922 As at 31 Dec 2023 = 1 Jan 2024 0 -18,367,821 0 -18,367,821 Depreciation 0 -1,561,960 0 -1,561,960 Disposals 0 1,006,662 0 1,006,662 Other changes 0 -1,662,079 0 -1,662,079 As at 31 Dec 2024 0 -20,585,198 0 -20,585,198

The depreciation rates used for investment property range between 1.5% and 5%. Depreciation rates did not change in 2024 compared to the previous year.

In 2024, the Group assessed the existence of possible signs of impairment of investment property. No signs of impairment were identified.

The Company has no investment property pledged as collateral for liabilities. It also has no financial liabilities related to the purchase of investment property. Investment property owned by the Company was not obtained with state support.

The depreciation rates used for investment property range between 1.5% and 5% and did not change in 2024 compared to the previous year.

In 2024, the Company assessed the existence of possible signs of impairment of investment property. No signs of impairment were identified.

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

Determining the fair value of the Group's and the Company's investment property

The fair value of real property was determined based on valuations performed as at 30 September 2024 by an external certified real estate valuer in accordance with the guidelines described in Section 2.5.10. When preparing the financial statements as at 31 December 2024, the management performed a re-assessment and concluded that there were no changes between the valuation date and the reporting date that would significantly affect the fair value of real property. For the purposes of real property valuation, the suitability of using all valuation methods provided by the International Valuation Standards was checked. Considering the results of the real property market analysis as well as taking into consideration the purpose of valuation and the characteristics of specific valued real property, the following were used in valuation:

  • the market approach (the comparable transaction method),
  • the income approach (the income capitalisation approach) and
  • the land residual method.

In the comparable transaction method, fair value was estimated based on market data derived from comparable transactions with similar real property.

When using the income capitalisation method, the fair value of Slovenian real property was estimated using a discount rate ranging between 8% and 9.50% for commercial buildings. The rate was determined using the market analysis method and further verified using the build-up method. Residential buildings were valued using the comparable sales method due to sufficient market evidence in local markets. The following assumptions were taken into account in the calculation of the capitalisation rate:

  • the 0.22% risk-free rate of return in real terms, taking into account the yield on a 10-year Slovenian government bond of 2.22% and the European Central Bank's long-term inflation target of 2.0%;
  • the real estate risk premium of 5.0–7.0%;
  • the capital retention premium of 1.56% (according to Hoskold) (in the case of an estimated age of office property of 60 years).

When using the income capitalisation method, the fair value of real property abroad was estimated using a discount rate ranging between 7.75% and 15.0%, and was also calculated using the market analysis method. The rate was verified using a build-up method (a three-part model), in which the following assumptions were used:

  • the real risk-free rate of return of 0.00–6.78%, taking into account the yield on a 10-year German government bond (2.13%), the country risk premium (2.33–7.94%) and the current and projected inflation rate for the country in which real property is located;
  • the real estate risk premium of 6.25%;
  • the capital retention premium of 0.13–1.67% (in the case of an estimated age of office property of 60 years)

The fair values of the Group's and the Company's investment property exceed their carrying amounts and is presented in section 4.1.1.

Investment property income and expenses of the Group and the Company

The Group and the Company lease (operational lease) its investment properties, i.e. individual business premises. All operating leases can be cancelled and are concluded for an initial term of one to ten years or for an indefinite term. Leases do not include contingent rents (variable lease payments).

There were no significant modifications or terminations of lease contracts in 2024, As at 31 December 2024, 80.78% of all investment properties of the Group (31 December 2023: 74.26%) and 76% of all investment properties of the Company (31 December 2023: 72.47%) were leased.

All income from investment property relates exclusively to leases and operating expenses attributable to the lessee and is disclosed in profit or loss under the item net other operating income and expenses.

Expenses from investment property relate to depreciation, maintenance costs and other expenses of investment property and are disclosed in profit or loss under the item net other operating income and expenses.

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Lease income 5,760,539 7,441,236 6,479,919 6,195,418
Depreciation of investment property -1,561,960 -1,434,129 -1,026,420 -972,822
Maintenance costs and other expenses related to income
generating real property		 -2,603,653 -2,349,341 -3,372,853 -2,945,673
Maintenance costs and other expenses related to
non-income-generating real property		 -29,004 -81,176 -27,602 -75,372

Expected undiscounted cash flows from concluded lease contracts

Based on the contractual provisions effective at the balance sheet date, the Group and the Company expect cash flows in the coming years as presented below. Expected cash flows are calculated based on the term of valid lease contracts. Contracts concluded without a term were assumed to last for five years.

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Expected lease payments in year 1 4,676,803 5,999,327 4,282,320 3,559,799
Expected lease payments in year 2 4,268,377 4,324,247 3,923,016 3,137,038
Expected lease payments in year 3 1,269,710 3,894,731 1,037,933 2,893,114
Expected lease payments in year 4 1,045,774 858,445 1,002,435 199,854
Expected lease payments in year 5 420,221 626,503 398,902 197,574
Expected lease payments later than 5 years 275,421 414,745 275,421 76,375
TOTAL 11,956,306 16,117,998 10,920,027 10,063,754

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

3.7.3 Right-of-use assets

The Group and the Company lease business premises, vehicles and other equipment used in their operations. Leases for business premises are mostly concluded for an indefinite term, and leases for vehicles and other equipment for one to five years.

The Group and the Company also entered into short-term leases and leases of low-value equipment. Permitted exceptions to recognition apply to these leases.

Movement in right-of-use assets of the Triglav Group

in EUR
Land and
buildings		 Vehicles Other
equipment		 TOTAL
As at 1 Jan 2023 12,402,745 2,183,774 58,493 14,645,012
New leases 3,150,111 1,941,607 20,954 5,112,672
Lease termination -1,110,757 -801,698 -12,016 -1,924,471
Lease modification 2,536,837 662,404 0 3,199,241
Change in estimates of future cash flows -276,350 20,161 0 -256,189
Depreciation of right-of-use assets -4,059,700 -1,005,825 -36,190 -5,101,715
Exchange rate differences and other changes -2,539 -839 -13 -3,391
As at 31 Dec 2023 = 1 Jan 2024 12,640,347 2,999,584 31,228 15,671,159
Elimination of intercompany transactions -4,557,710 0 0 -4,557,710
TOTAL 8,082,637 2,999,584 31,228 11,113,449
New leases 2,695,609 923,317 0 3,618,926
Lease termination -1,512,412 -156,289 -674 -1,669,375
Lease modification 756,463 13,107 0 769,570
Change in estimates of future cash flows 41,636 0 0 41,636
Depreciation of right-of-use assets -3,732,035 -998,792 -17,120 -4,747,947
Exchange rate differences and other changes 403,861 1,151 -213 404,799
As at 31 Dec 2024 11,293,469 2,782,078 13,221 14,088,768
Elimination of intercompany transactions -4,037,026 0 0 -4,037,026
TOTAL 7,256,443 2,782,078 13,221 10,051,742

Movement in right-of-use assets of Zavarovalnica Triglav

in EUR
Land and
buildings		 Vehicles Other
equipment		 TOTAL
As at 1 Jan 2023 2,968,766 1,363,534 36,710 4,369,010
New leases 171,273 1,385,405 0 1,556,678
Lease termination -91,670 -151,781 0 -243,451
Lease modification 696,206 17,413 0 713,619
Depreciation of right-of-use assets -988,674 -581,714 -12,084 -1,582,472
As at 31 Dec 2023 = 1 Jan 2024 2,755,901 2,032,857 24,626 4,813,384
New leases 380,333 923,317 0 1,303,650
Lease termination -614,405 -55,048 -674 -670,127
Lease modification 153,581 13,718 0 167,299
Depreciation of right-of-use assets -800,500 -683,506 -11,152 -1,495,157
As at 31 Dec 2024 1,874,911 2,231,338 12,800 4,119,049

Lease liabilities

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Right of use assets 10,051,743 11,113,449 4,119,049 4,813,384
Lease financial liabilities -10,656,690 -11,665,332 -4,302,797 -5,033,767

To calculate the net present value of future cash flows from leases, discount rates were used that were determined at the level of the interest rate for risk-free government bonds, increased by the credit spread of an individual Group member. When valuing assets and liabilities from contracts concluded for an indefinite term, there were no changes in the estimated term of contracts in 2024.

The table below shows the maturity of expected discounted cash flows by year.

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Expected cash flows in less than 1 year 4,685,461 4,539,979 1,354,334 1,504,315
Expected cash flows in 1–2 years 4,073,033 4,431,734 1,141,041 1,394,461
Expected cash flows in 2–3 years 2,599,120 3,126,865 712,295 931,401
Expected cash flows in 3–4 years 1,619,640 2,277,307 439,744 485,991
Expected cash flows in 4–5 years 519,451 859,384 185,434 228,514
Expected cash flows over 5 years 1,092,349 1,153,420 469,948 489,085
Lease liabilities 14,589,054 16,388,689 4,302,797 5,033,767
Elimination of intercompany transactions -3,932,364 -4,723,356 0 0
TOTAL 10,656,690 11,665,333 4,302,797 5,033,767

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Statement of management's responsibilities Independent auditor's report

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The maturity of expected undiscounted cash flows by year is shown below.
in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Expected cash flows in less than 1 year 5,795,676 5,564,080 1,483,863 1,379,134
Expected cash flows in 1–2 years 4,723,260 5,028,385 1,238,372 1,257,926
Expected cash flows in 2–3 years 2,843,942 3,878,895 770,385 990,223
Expected cash flows in 3–4 years 1,645,050 2,440,864 471,817 521,975

The Group's and the Company's expenses related to leased assets and payments related to rights-of-use assets

Expected cash flows in 4–5 years 619,246 945,515 204,409 283,194 Expected cash flows over 5 years 984,992 1,619,749 512,258 539,490 Total expected undiscounted cash flows 16,612,166 19,477,488 4,681,104 4,971,942

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Expenses related to right-of-use assets -5,656,419 -6,129,451 -1,681,201 -1,747,406
Depreciation/amortisation costs of leased assets -4,747,947 -5,101,715 -1,495,157 -1,582,472
Interest expenses from leased assets -876,391 -901,232 -186,044 -164,934
Other expenses from leased assets -32,081 -126,504 0 0
Other lease-related costs and expenses -2,175,372 -1,482,855 -522,140 -511,481
Expenses for short-term leases -1,501,435 -806,975 -89,628 -54,048
Expenses for low-value leases -507,042 -525,068 -432,512 -457,433
Expenses related to variable lease payments -166,895 -150,812 0 0
Payments for right-of-use assets in the year 5,925,802 5,878,787 1,638,165 1,652,992

3.7.4 Intangible assets and goodwill

Movement in intangible assets of the Triglav Group

in EUR
Goodwill Licenses and
software		 Intangible
assets in
acquisition		 Long-term
deferred items		 TOTAL
COST
As at 1 Jan 2023 10,413,312 105,811,073 7,347,894 244,184 123,816,463
Transfer to use 0 2,147,073 -2,147,073 0 0
Acquisitions and other increases 0 8,210,238 5,710,237 0 13,920,475
Disposals 0 -394,177 0 0 -394,177
Other changes 0 -1,795,702 -8,795 -85,824 -1,890,321
As at 31 Dec 2023 = 1 Jan 2024 10,413,312 113,978,505 10,902,263 158,360 135,452,440
Transfer to use 0 10,995,800 -10,995,800 0 0
Acquisitions and other increases 0 7,032,874 5,706,589 0 12,739,463
Disposals 0 -3,535,036 0 0 -3,535,036
Other changes 0 -876,828 47,281 109,050 -720,497
As at 31 Dec 2024 10,413,312 127,595,315 5,660,333 267,410 143,936,370
ACCUMULATED DEPRECIATION
As at 1 Jan 2023 0 -70,096,204 0 0 -70,096,204
Depreciation 0 -11,696,494 0 0 -11,696,494
Disposals 0 367,575 0 0 367,575
Other changes 0 628,989 0 0 628,989
As at 31 Dec 2023 = 1 Jan 2024 0 -80,796,134 0 0 -80,796,134
Depreciation 0 -13,299,686 0 0 -13,299,686
Disposals 0 3,534,563 0 0 3,534,563
Other changes 0 -13,205 0 0 -13,205
As aat 31 Dec 2024 0 -90,574,462 0 0 -90,574,462
CARRYING AMOUNT
As at 1 January 2023 10,413,312 35,714,869 7,347,894 244,184 53,720,259
As at 31 December 2023 10,413,312 33,182,371 10,902,263 158,360 54,656,306
As at 31 December 2024 10,413,312 37,020,853 5,660,333 267,410 53,361,912

4. Other information

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

Goodwill

Goodwill arises from the merger of Alta Skladi, d.d., to Triglav Skladi, družba za upravljanje, d.o.o. in 2019.

Triglav Skladi d.o.o. recognised goodwill of EUR 10.4 million on the merger of Alta Funds, d.d., arising from the excess of the purchase consideration over the net asset value of the assets acquired. The goodwill is allocated to the cash-generating unit (CGU) and represents the expected future economic benefits from the synergies of the merger.

The value of goodwill is reviewed annually in accordance with IAS 36. The impairment test is based on a recoverable amount estimate, which is the higher of fair value less costs to sell and value in use. On 30 September 2023, a certified business valuer assessed the value in use and concluded that the assessed CGU (the cash-generating unit being the entity as a whole, i.e. Triglav Skladi) exceeds the carrying amount of Triglav Skladi's total equity. The following assumptions were used to calculate the value in use:

  • Cash flow projections for the period from 1 October 2023 to 31 December 2031,
  • A discount rate of 12.2%,
  • A residual value estimate of 2%.

The cash flow estimates are based on projections approved by both the Management Board and the Supervisory Board. These projections rely on past operating results and expectations of future business growth. A discount rate reflecting capital market expectations at 30 September 2023, as well as assetspecific risks until 2031, was applied. Long-term macroeconomic forecasts were also incorporated into the risk assessment. Reasonable changes in assumptions, such as an increase in the discount rate or lower income growth, could affect the need for impairment. As at 30 September 2023, the CGU's estimated value in use was EUR 109.5 million, significantly higher than the net assets' carrying amount.

Because the value in use exceeds the asset's carrying amount, it is not necessary to assess fair value less costs to sell in accordance with IAS 36.

As at 31 December 2024, the key assumptions used in the 30 September 2024 cash-generating unit value assessment were rechecked. The key assumptions include growth in the carrying amount of the company's share capital, an increase in assets under management and long-term financial investments, outperformance of income and profit forecasts in 2024, and a reduction in the discount rate due to a lower risk-free rate of return. Based on an analysis of business events and changes in circumstances since the last recoverable amount calculation, it is unlikely that the present recoverable amount of this asset would be less than its carrying amount.

Other intangible assets

Under other intangible assets, the Group has no intangible assets pledged as collateral for liabilities. It also has no financial liabilities related to the purchase of intangible assets. Intangible assets owned by the Group were not obtained with state support.

The depreciation rate used for software is 20%, and for other material rights it ranges between 1% and 20%. Depreciation rates did not change in 2024.

The Group has no intangible assets that are individually significant for the consolidated financial statements.

In 2024, the Group assessed the existence of possible signs of impairment of other intangible assets. No signs of impairment were identified.

306

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Movement in intangible assets of Zavarovalnica Triglav
-------------------------------------------------------- --
in EUR
Licenses and
software		 Intangible assets
in acquisition		 Long-term
deferred items		 TOTAL
COST
As at 1 Jan 2023 81,726,305 4,737,581 158,422 86,622,308
Transfer to use 1,412,609 -1,412,609 0 0
Acquisitions and other increases 7,477,216 2,720,716 0 10,197,933
Disposals -235,561 0 0 -235,561
Other changes 0 0 -86,017 -86,017
As at 31 Dec 2023 = 1 Jan 2024 90,380,570 6,045,689 72,405 96,498,664
Transfer to use 2,936,658 -2,936,658 0 0
Acquisitions and other increases 6,590,723 1,927,703 0 8,518,426
Disposals -3,392,812 0 0 -3,392,812
Other changes 0 0 156,456 156,456
As at 31 Dec 2024 96,515,139 5,036,734 228,861 101,780,733
ACCUMULATED DEPRECIATION
As at 1 Jan 2023 -55,326,588 0 0 -55,326,588
Depreciation -10,368,357 0 0 -10,368,357
Disposals 235,561 0 0 235,561
As at 31 Dec 2023 = 1 Jan 2024 -65,459,385 0 0 -65,459,385
Depreciation -11,262,366 0 0 -11,262,366
Disposals 3,392,339 0 0 3,392,339
As at 31 Dec 2024 -73,329,412 0 0 -73,329,412
CARRYING AMOUNT
As at 1 January 2023 26,399,717 4,737,581 158,422 31,295,720
As at 31 December 2023 24,921,185 6,045,689 72,405 31,039,279
As at 31 December 2024 23,185,727 5,036,734 228,861 28,451,322

The Company has no intangible assets pledged as collateral for liabilities. The Company also has no financial liabilities related to the purchase of intangible assets. Intangible assets owned by the Company were not obtained with state support.

The depreciation rate used for software is 20%, and for other material rights it ranges between 1% and 20%. Depreciation rates did not change in 2024.

The Company has no intangible assets that are individually significant for the financial statements.

Cost of fully depreciated property, plant and equipment still in use represents 35.25% of total cost of property, plant and equipment used by the Company (31 December 2023: 17.55%).

In 2024, the Company assessed the existence of possible signs of impairment of other intangible assets. No signs of impairment were identified.

3.7.5 Deferred tax assets and liabilities

Effects of financial income and expenses from insurance contracts of the Triglav Group

in EUR
31 Dec 2024 31 Dec 2023
Deferred tax assets 14,239,505 21,967,548
Deferred assets from determining the fair value of debt instruments at FVOCI 19,123,784 24,989,603
Deferred assets from determining the fair value of equity instruments at FVOCI 870,115 926,989
Deferred assets from the impairment of financial instruments 4,025,942 4,713,262
Deferred assets from the impairment of receivables 167,355 210,901
Deferred assets from impairment of land and buildings 320,428 327,683
Deferred assets from the calculation of employee benefits 1,731,389 1,707,895
Deferred assets from insurance contracts 123,338 7,262
Deferred assets from reinsurance contracts 75,996 423,347
Deferred assets from using various depreciation rates 137,707 118,289
Deferred assets from other items 1,060,864 1,132,225
Deferred assets from unused tax losses 703,486 6,443,736
Netting of deferred tax -14,100,899 -19,033,644
Deferred tax liabilities 2,212,405 1,865,810
Deferred insurance contract liabilities 12,255,043 17,551,404
Deferred tax liabilities from reinsurance contracts 188,684 0
Deferred liabilities from the transition to the new standard 0 48
Deferred liabilities from determining the fair value of debt instruments at FVOCI 238,019 92,512
Deferred liabilities from determining the fair value of equity instruments at FVOCI 87,891 87,886
Deferred liabilities from using various depreciation rates 706,667 700,015
Deferred liabilities from other items 2,837,000 2,467,589
Netting of deferred tax -14,100,899 -19,033,644
TOTAL 12,027,100 20,101,738

Deferred tax assets and liabilities are calculated at the tax rate expected to apply at the time of their reversal.

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in EUR
31 Dec 2024 31 Dec 2023
Deferred tax assets 12.796.824 19.166.719
Deferred assets from determining the fair value of debt securities at FVOCI 17.755.432 21.908.737
Deferred assets from determining the fair value of equity securities at FVOCI 870.115 926.989
Deferred assets from the impairment of financial instruments 3.452.775 3.926.582
Deferred assets from the impairment of receivables 0 12.650
Deferred assets from impairment of land and buildings 320.428 327.683
Deferred assets from the calculation of employee benefits 1.626.257 1.615.037
Defferred assets from insurance contracts 0 840
Deferred assets from reinsurance contracts 243 179.844
Deferred assets from other items 0 5.826.894
Netting of deferred tax -11.228.426 -15.558.537
Deferred tax liabilities 0 0
Deferred liabilities from insurance contracts 11,093,955 15,558,495
Deferred liabilities from reinsurance contracts 134,471 42
Netting of deferred tax -11,228,426 -15,558,537
TOTAL 12,796,824 19,166,719

Effects of financial income and expenses from insurance contracts of Zavarovalnica Triglav

Zavarovalnica Triglav's deferred tax assets and liabilities as at 31 December 2024 and 31 December 2023 were calculated using a tax rate of 22%.

in EUR
Triglav Group Zavarovalnica Triglav
Deferred tax assets
As at 1 Jan 2023 81,161,818 73,225,815
Creation recognised in profit or loss 8,718,018 7,480,498
Use recognised in profit or loss -27,533,942 -27,517,711
Release recognised in profit or loss -10,393,596 -9,949,209
Creation recognised in other comprehensive income 1,000,759 927,830
Use recognised in other comprehensive income -1,268,943 -1,268,943
Release recognised in other comprehensive income -10,681,468 -8,173,025
Exchange rate differences -1,457 0
As at 31 Dec 2023 = 1 Jan 2024 41,001,189 34,725,255
Creation recognised in profit or loss 1,980,196 1,928,303
Use recognised in profit or loss -6,216,962 -6,214,361
Release recognised in profit or loss -2,425,645 -2,023,328
Creation recognised in other comprehensive income 3,096,218 2,992,480
Use recognised in other comprehensive income -285,351 -285,351
Release recognised in other comprehensive income -8,813,672 -7,097,747
Exchange rate differences 4,431 0
As at 31 Dec 2024 28,340,404 24,025,251
Deferred tax liabilities
As at 1 Jan 2023 68,426,616 60,190,447
Creation recognised in profit or loss 160,318 0
Use recognised in profit or loss -37,802,721 -37,802,721
Release recognised in profit or loss -1,542,879 -754,194
Creation recognised in other comprehensive income 67,009 42
Use recognised in other comprehensive income -1,281,815 -1,104,367
Release recognised in other comprehensive income -7,126,183 -4,970,670
Exchange rate differences -889 0
As at 31 Dec 2023 = 1 Jan 2024 20,899,456 15,558,537
Creation recognised in profit or loss 52,668 0
Release recognised in profit or loss -205,124 0
Creation recognised in other comprehensive income 882,646 134,430
Release recognised in other comprehensive income -5,320,104 -4,464,540
Exchange rate differences 3,762 0
As at 31 Dec 2024 16,313,304 11,228,427

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in EUR
31 Dec 2024 31 Dec 2023
Tax jurisdiction Deferred tax assets Deferred tax liabilities Total deferred tax Deferred tax assets Deferred tax liabilities Total deferred tax
Slovenia 13,869,765 275,674 13,594,091 21,175,326 376,288 20,799,038
Croatia 1,362,506 746,795 615,711 821,654 0 821,654
Montenegro 45,465 1,354,695 -1,309,230 76,460 1,345,139 -1,268,679
Bosnia and Herzegovina 47,130 576,283 -529,153 0 597,131 -597,131
North Macedonia 50,736 21,033 29,703 128,997 0 128,997
Serbia 0 374,022 -374,022 217,859 0 217,859
TOTAL DEFERRED TAX 15,375,602 3,348,502 12,027,100 22,420,296 2,318,558 20,101,738
Total deferred tax assets 14,239,505 21,967,548
Total deferred tax liabilities 2,212,405 1,865,810

In the Group's and the Company's financial statements, deferred tax assets and liabilities are offset at the level of the tax jurisdiction, as shown below.

3.7.6 Non-current assets held for sale

Offset of deferred tax assets and liabilities

Discontinued operations from supplemental health insurance

The Act Amending the Health Care and Health Insurance Act, which entered into force on 20 July 2023, terminated supplemental health insurance within the Slovenian public healthcare system, effective from 1 January 2024. As of that date, all existing supplemental health insurance contracts in Slovenia were terminated.

Triglav, Zdravstvena zavarovalnica, which had provided supplemental health insurance until the termination, was merged into its parent company, Zavarovalnica Triglav, as of 1 October 2024. Despite the termination, the supplemental health insurance continued to generate income, expenses and cash flows in 2024. The operating profit from the supplemental health insurance business was excluded from the operating profit of continuing operations and disclosed separately in the profit or loss.

The cash flow from the supplemental health insurance business was excluded from the cash flow of continuing operations and disclosed separately in the cash flow statement.

The following tables present the statement of profit or loss and the cash flow statement for supplemental health insurance, broken down by item.

in EUR
2024 2023
Insurance service result 5,539,543 -22,680,223
Insurance revenue 52,453 193,275,962
Insurance service expenses 5,487,091 -215,956,185
Investment result 0 -2,725,610
Interest income calculated using the effective interest method 0 176,237
Net gains/losses on financial assets 0 -3,031,559
Net impairment/reversal of impairment of financial assets 0 128,858
Other investment income/expenses 0 853
Financial result from insurance contracts -113,374 -80,813
Net insurance finance income/expenses -113,374 -80,813
Non-attributable operating expenses -236,860 -2,043,895
Net other operating income/expenses -59,651 449,475
Net other financial income/expenses -4,030 -11,357
Net other income/expenses 11,022,074 -683,446
Earnings before tax 16,147,704 -27,775,868
Tax expense 0 5,503,377
Corporate income tax 3,552,495 0
Deferred tax income/expenses -3,552,495 5,503,377
Net earnings 16,147,704 -22,272,491

Accounting report

Statement of management's responsibilities Independent auditor's report

in EUR
2024 2023
Items that may be reclassified to profit or loss in future periods -2,979 1,545,820
Accumulated insurance finance income/expenses -3,819 -160,804
Effect of debt instruments at FVOCI 0 1,704,633
Tax on items that may be reclassified to profit or loss 840 1,991
Other comprehensive income after tax from discontinued operations -2,979 1,545,820
in EUR
2024 2023
Net cash flow from operating activities -154,963 -45,474,166
Net cash flow from investing activities 0 44,804,675
Net cash flow from financing activities -4,029 -10,460
Net cash flow from discontinued operations -158,991 -679,952

The insurance service result of EUR 5,539,543 relates to the release of insurance contract liabilities.

Net other insurance revenue relates to the reimbursement of the difference between the costs paid by Triglav, Zdravstvena zavarovalnica, d.d. to healthcare service providers (taking into account the equalisation schemes) and the insurance income from supplemental health insurance during the reference period from June 2023 to December 2023.

Triglav, zdravstvena zavarovalnica submitted a claim for reimbursement of this difference of EUR 10,996,355 based on the offer from the Ministry of Health. The reimbursement amount is also shown under received government grants in Section 4.3.

Other non-current assets held for sale

Other non-current assets held for sale comprise land and buildings classified as held for sale in 2024. As at 31 December 2024, these assets amounted to EUR 49,390 at Group level (31 December 2023: EUR 3,129,709).

3.7.7 Other receivables

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Non-attributable receivables from insurance operations 22,542,433 16,333,461 21,694,686 15,519,561
Other receivables 21,995,767 21,310,542 6,059,216 4,928,937
Trade receivables 10,787,469 8,700,903 0 201
Overpayments and prepayments 2,885,892 3,802,918 1,561,657 2,842,584
Other short-term operating receivables 5,405,549 5,745,201 3,127,107 950,427
Receivables from financing 688,859 967,993 589,979 176,245
Other 2,227,998 2,093,527 780,473 959,481
TOTAL 44,538,200 37,644,003 27,753,903 20,448,498

Impairment of non-attributable receivables from insurance operations

Non-attributable receivables from insurance operations are receivables that relate to insurance business but are not attributable to individual insurance contracts. These are mainly receivables from points of sale and foreign intermediaries, receivables for card payments, receivables for overpaid benefits and similar. As at 31 December 2024 and 31 December 2023, the Group and the Company tested these receivables for impairment, focusing primarily on significant exposures to foreign intermediaries. No signs of impairment were identified, as the foreign intermediaries to which the Group and the Company are exposed have very good credit ratings and do not default on payments.

Impairment of other receivables

The table below shows the age structure of receivables and the amount of impairment allowance.

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Not due 14,082,570 13,984,739 5,661,044 4,604,918
Overdue up to 30 days 1,310,643 1,888,968 351,908 196,640
Overdue from 31 to 90 days 1,165,456 1,194,105 17,101 261,425
Overdue from 91 to 180 days 2,205,068 1,579,377 1,006,558 9,917
Overdue over 180 days 9,259,120 8,933,849 203,783 401,616
Total gross receivables 28,022,857 27,581,038 7,240,394 5,474,516
Impairment -6,027,263 -6,270,496 -1,181,178 -545,579
Carrying amount 21,995,594 21,310,542 6,059,216 4,928,937

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3.7.8 Cash and cash equivalents

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Cash in bank accounts 60,583,830 76,387,728 18,151,064 31,891,204
Call account 7,976,292 7,570,804 0 502
Cash on hand and other cash 390,957 462,135 14,257 14,637
TOTAL 68,951,079 84,420,667 18,165,321 31,906,343

In the statement of financial position under the item "cash and cash equivalents", cash of the fund backing unit-linked insurance is disclosed in the amount of EUR 3,263,314 (31 December 2023: EUR 15,158,808) for the Triglav Group and in the amount of EUR 2,968,453 (31 December 2023: EUR 14,286,647) for Zavarovalnica Triglav.

3.7.9 Other assets

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Inventories 514,590 521,192 215,464 182,835
Deferred expenses and accrued income 9,315,572 7,712,503 3,406,696 2,527,974
Other assets 97,650 98,206 97,466 98,022
TOTAL 9,927,812 8,331,901 3,719,626 2,808,831

3.7.10 Equity

Zavarovalnica Triglav's share capital

As at 31 December 2024, the Company's share capital amounted to EUR 73,701,392 (31 December 2023: EUR 73,701,392). It was divided into 22,735,148 ordinary registered no-par value shares. Each share represents the same stake and corresponding amount in share capital. The proportion of each no-par value share in the share capital is determined based on the number of no-par value shares issued. All the shares have been paid up in full.

The shares are entered in the KDD register under the ZVTG ticker symbol and are listed on the Ljubljana Stock Exchange Prime Market. Shareholders have the right to participate in the management of the company and the right to participate in profit.

As at 31 December 2024, there were 8,218 subscribers of shares in Zavarovalnica Triglav's share register (31 December 2023: 8,453). The largest subscribers are presented in the table below.

Shareholders of Zavarovalnice Triglav

As at 31 Dec 2024 Numbers of shares Share (%)
Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana 7,836,628 34.47
SDH, d.d., Ljubljana 6,386,644 28.09
Erste Group Bank PBZ Croatia Osiguranje OMF – fiduciarni račun, Zagreb, Hrvaška 1,543,798 6.79
Unicredit Bank Austria – fiduciarni račun, Dunaj, Avstrija 525,864 2.31
Citibank – fiduciarni račun, London, Velika Britanija 428,048 1.88
Hrvatska poštanska banka – fiduciarni račun, Zagreb, Hrvaška 232,189 1.02
Other shareholders (less than 1%) 5,781,977 25.44
TOTAL 22,735,148 100.00
As at 31 Dec 2023 Numbers of shares Share (%)
Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana 7,836,628 34.47
SDH, d.d., Ljubljana 6,386,644 28.09
Erste Group Bank PBZ Croatia Osiguranje OMF – fiduciarni račun, Zagreb, Hrvaška 1,526,190 6.71
Unicredit Bank Austria – fiduciarni račun, Dunaj, Avstrija 555,758 2.44
Citibank – fiduciarni račun, London, Velika Britanija 469,075 2.06
Hrvatska poštanska banka – fiduciarni račun, Zagreb, Hrvaška 232,644 1.02
Other shareholders (less than 1%) 5,728,209 25.20
TOTAL 22,735,148 100.00

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Share price

in EUR
31 Dec 2024 31 Dec 2023
Published share price of Zavarovalnica Triglav on a regulated securities market 40.50 34.70
Book value per share of Zavarovalnica Triglav 32.62 30.02
Book value per share of the Triglav Group 43.50 39.19

The share's book value is calculated taking into account the Company's total equity.

Distribution of accumulated profits of Zavarovalnica Triglav

On 6 June 2024, the General Meeting of Shareholders of Zavarovalnica Triglav d.d. decided on the distribution of accumulated profit, totalling EUR 87,854,039 as at 31 December 2023. A part of the accumulated profit in the amount of EUR 39,786,509 was allocated to dividend payments, amounting to EUR 1.75 gross per share. The dividends were paid on 19 June 2024. The distribution of the remaining part of accumulated profit will be decided on in the coming years.

in EUR
2024 2023
Net profit/loss for the year 98,231,897 38,662,426
Net profit brought forward 48,067,529 6,931,409
Change in net retained earnings 36,616 11,647,900
Increase in net retained earnings due to the merger 12,094,611 0
Increase of other reserves from profit based on the decision by the Management and
Supervisory Boards		 -49,000,000 -19,000,000
Increase in net retained earnings due to the transition to new standards 0 49,612,304
ACCUMULATED PROFITS 109,430,653 87,854,039
Distribution of accumulated profits
– to shareholders 39,786,509
– transfer to the following year 48,067,530

Reserves from profit

In addition to legal and treasury share reserves, reserves from profit also comprise other reserves from profit.

In accordance with the ZGD-1, the Management Board may allocate up to one half of the amount of the net profit remaining after the appropriation of the profit for the purposes required by law to create other reserves. In addition to prudent risk management, the creation of these reserves based on, in particular, the anticipated company's strategic needs for capital, taking into account capital sources. When preparing the Annual Report for 2024, the Management Board formed other reserves from profit in the amount of EUR 49,000,000 (2023: EUR 19,000,000).

Treasury shares reserves and treasury shares (as a deductible item)

The treasury shares include the shares of Zavarovalnica Triglav held by other Group companies whose financial statements are included in the Group's consolidated financial statements. As at 31 December 2024, Triglav, Upravljanje nepremičnin d.o.o. held 24,312 ZVTG shares worth EUR 364,680 as at the balance sheet date. The balance of treasury shares is unchanged compared to the preceding year.

In the consolidated financial statements, treasury shares are measured at cost and recognised as a deductible under equity. For these shares, treasury share reserves are created in the same amount from net profit brought forward.

Accumulated other comprehensive income

Accumulated other comprehensive income shows changes in the portion of assets and liabilities arising from insurance contracts that are measured at fair value through other comprehensive income and changes in the fair value of financial investments classified as measured at fair value through other comprehensive income.

The amounts of accumulated other comprehensive income are net of the amount of deferred tax. Changes in accumulated other comprehensive income are shown in more detail in the statement of other comprehensive income.

Translation differences

Translation differences arise from foreign exchange differences in consolidation procedures. In 2024, translation differences amounted to EUR 119,938 (2023: EUR -20,062). Translation differences mainly refer to the change in the exchange rate of Serbian dinar.

Notes to the statement of changes in equity

The following changes are shown in the Group's statement of changes in equity for 2024:

  • increase in capital for net profit of the year in the amount of EUR 130,893,953, of which EUR 524,160 is accounted for by non-controlling interest holders;
  • reduction of capital for the dividend payment in the amount of EUR 39,742,259, of which EUR 1,704 relates to the dividend payment to non-controlling interests;
  • allocation of net profit from 2023 to net profit brought forward in the amount of EUR 7,192,538;
  • allocation of net profit from 2024 to reserves from profit in the amount of EUR 55,844,921;
  • increase of accumulated other comprehensive income and net profit brought forward in the total amount of EUR 6,199,299, of which EUR 8,654 reduces the capital of non-controlling interest holders. The decrease relates to the re-measurement of the fair value of financial instruments, insurance and reinsurance contracts, and the recalculation of actuarial gains and losses related to employee benefits;
  • the effect of repurchases of shares of subsidiaries from non-controlling interests, which reduced the value of non-controlling interests by EUR 42,510.

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Appendix

The following changes are shown in the Company's statement of changes in equity for 2024:

  • increase in capital for net profit of the year in the amount of EUR 98,231,897;
  • reduction of capital for the payment of dividends in the amount of EUR 39,786,509 based on a general meeting of shareholders' resolution;
  • allocation of net profit from 2023 to net profit brought forward in the amount of EUR 4,782,244;
  • allocation of net profit from 2024 to reserves from profit in the amount of EUR 49,000,000 based on a management board's decision;
  • increase of accumulated other comprehensive income and net profit brought forward in the total amount of EUR 671,094, which relate to the re-measurement of the fair value of financial instruments, insurance and reinsurance contracts, and the recalculation of actuarial gains and losses related to employee benefits.

3.7.11 Subordinated liabilities

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Amortised cost 152,130,399 49,994,402 152,130,399 49,994,402
Fair value 147,215,330 53,087,374 147,215,330 53,087,374

Subordinated bond with the ISIN code XS1980276858 was issued on 24 April 2019 in the amount of EUR 50 million (500 denominations of EUR 100,000). The final maturity date of said bond is 22 October 2049 and the first call date is 22 October 2029. Until the first call, interest is paid annually at the fixed interest rate of 4.375%. Thereafter, the interest rate is variable, i.e. 3-month Euribor + 4.845%, and interest is paid quarterly. The bond is valued at amortised cost in the financial statements. The bond was listed on the Luxembourg Stock Exchange on 30 April 2019 (ISIN code XS1980276858). The bond is subordinated (Tier 2) and issued in line with the Solvency II regulations.

The second subordinated bond with ISIN XS2848005166 was issued in July 2024 for EUR 100 million (1,000 denominations of EUR 100,000). The final maturity date of said bond is 16 January 2045 and the first call date is 16 July 2034. Until the first call, interest is paid annually at the fixed interest rate of 6.7%. Thereafter, the interest rate is variable, i.e. 3-month Euribor + 4.937%, and interest is paid quarterly. The bond is valued at amortised cost in the financial statements. The bond was listed on the Luxembourg Stock Exchange (ISIN code XS2848005166). The bond is subordinated (Tier 2) and issued in line with the Solvency II regulations. The two bonds issued are carried at amortised cost. When calculating the fair value, the price according to the valuation model is taken into account, as there are very few transactions on the stock exchange. Bond price as at 31 December 2024 was 101.482% for the first bond and 82.147% for the second bond (31 December 2023: 105.338%).

In the event of the Company's bankruptcy or liquidation, liabilities from the above-mentioned bond issues are subordinated to net debt instruments and are paid only when all non-subordinated liabilities to ordinary creditors have been paid. The holders of bonds do not have the right to early redemption before the maturity date set by the amortisation schedule. Bonds are not convertible to equity or any other liability.

3.7.12 Provisions

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
20,064,123 19,665,677 14,704,140 14,795,940
11,723,376 11,353,153 7,946,511 7,869,408
2,320,479 2,431,226 1,917,859 2,037,105
6,020,268 5,881,298 4,839,770 4,889,427
5,932,008 10,681,808 174,254 1,227,310
25,996,131 30,347,485 14,878,394 16,023,250

Movement in provisions for retirement benefits and jubilee payments

The following estimates and assumptions were taken into account in the calculation of provisions for pensions and retirement benefits as at 31 December 2024:

  • The expected mortality based on crude mortality tables for the population of Slovenia from 2023 (Statistical Office of Slovenia), taking into account a 30% lower mortality than given in those tables; in the companies outside of Slovenia, mortality tables from individual countries were taken into account.
  • The expected annual employee turnover depending on age which, on average, stands at 2.6% in Slovenia; in the companies outside Slovenia, the expected employee turnover in an individual country was taken into account.
  • The expected annual average wage growth in Slovenia was 3.9%; in the subsidiaries outside Slovenia, the expected average wage growth in an individual country was taken into account.
  • The yield curve of the Slovenian government debt securities denominated in EUR as at 30 November 2024. The ten-year benchmark is 2.89%. In the companies outside Slovenia, the yield curves of government debt securities of individual countries were taken into account.

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Appendix

Triglav Group Provisions for
retirement
benefits		 Provisions for
jubilee payments		 TOTAL
As at 1 Jan 2023 9,797,099 2,399,605 12,196,704
Current service cost 551,565 205,703 757,268
Interest cost 241,269 59,567 300,836
Actuarial gains/losses due to:
- changes in demographic assumptions -4,176 -3,974 -8,150
- changes in financial assumptions 574,188 71,247 645,435
- experience adjustments 652,501 76,314 728,815
Past service cost 10,427 4,272 14,699
Gains/losses upon payment -162,115 -9,169 -171,284
Payouts during the year -557,287 -257,223 -814,510
Exchange rate difference -65,784 207 -65,577
As at 31 Dec 2023 = 1 Jan 2024 11,353,159 2,431,226 13,784,385
Current service cost 674,570 220,855 895,425
Interest cost 230,871 56,443 287,314
Actuarial gains/losses due to:
- changes in demographic assumptions -73,071 -4,708 -77,779
- changes in financial assumptions 419,072 320,196 739,268
- experience adjustments 69,114 -384,479 -315,365
Past service cost -3,418 0 -3,418
Gains/losses on payout -410,138 2,082 -408,056
Payouts during the year -549,084 -321,205 -870,289
Exchange rate difference 12,301 69 12,370
As at 31 Dec 2024 11,723,376 2,320,479 14,043,855
in EUR
Zavarovalnica Triglav Provisions for
retirement
benefits		 Provisions for
jubilee payments		 TOTAL
Balance of provisions as at 1 Jan 2023 6,817,224 1,925,223 8,742,447
Current service cost 271,170 133,605 404,775
Interest cost 203,186 57,052 260,238
Actuarial gains/losses due to:
- changes in financial assumptions 547,353 66,164 613,517
- experience adjustments 715,389 76,791 792,180
Past service cost 10,427 4,272 14,699
Profit/loss upon payment -208,291 -13,037 -221,328
Payouts during the year -487,050 -212,965 -700,015
Balance of provisions as at 31 Dec 2023 = 1 Jan 2024 7,869,408 2,037,105 9,906,513
Current service cost 395,032 153,199 548,231
Interest cost 196,803 54,042 250,845
Actuarial gains/losses due to:
- changes in demographic assumptions -127,692 -4,715 -132,407
- changes in financial assumptions 253,565 313,720 567,285
- experience adjustments 219,915 -375,620 -155,705
Profit/loss upon payment -400,524 1,244 -399,280
Payouts during the year -459,996 -261,116 -721,112
Balance of provisions as at 31 Dec 2024 7,946,511 1,917,859 9,864,370

Sensitivity analysis of parameter changes

Triglav Group in EUR
Parameter Parameter change 2024 2023
Interest rate shift in the discount curve by +0.25% -277,393 -271,626
shift in the discount curve by -0.25% 235,283 280,948
Wage growth change in annual wage growth by +0.5% 477,760 444,173
change in annual wage growth by -0.5% -370,870 -395,910
Mortality rate constant increase in mortality by +20% -106,691 -98,727
constant increase in mortality by -20% 109,155 101,112
Early employment termination shift in the expense curve by +20% -565,228 -472,652
shift in the expense curve by -20% 625,001 512,279
Zavarovalnica Triglav in EUR
Parameter Parameter change 2024 2023
Interest rate shift in the discount curve by +0.25% -181,752 -174,700
shift in the discount curve by -0.25% 188,797 181,493
Wage growth change in annual wage growth by +0.5% 366,287 345,944
change in annual wage growth by -0.5% -328,012 -309,516
Mortality rate constant increase in mortality by +20% -72,598 -75,886
constant increase in mortality by -20% 73,543 76,920
Early employment termination shift in the expense curve by +20% -385,018 -319,749
shift in the expense curve by -20% 411,902 340,212

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

Movement in provisions for unused annual leave and other provisions and long-term deferred items

in EUR
Triglav Group Provisions for unused leave Other provisions
As at 1 Jan 2023 5,314,156 15,573,693
Creation 5,281,991 5,392,601
Use -4,493,778 -1,025,094
Release, -206,900 -9,298,530
Effect of exchange rate differences -14,174 39,140
As at 31 Dec 2023 = 1 Jan 2024 5,881,295 10,681,810
Creation 4,736,665 1,529,322
Use -4,565,858 -1,702,345
Release -31,880 -4,577,104
Effect of exchange rate differences 46 325
As at 31 Dec 2024 6,020,268 5,932,008

Zavarovalnica Triglav Provisions for unused leave Other provisions As at 1 Jan 2023 4,481,693 4,893,718 Creation 4,889,427 1,152,773 Use -4,481,693 -280,199 Release 0 -4,538,982 As at 31 Dec 2023 = 1 Jan 2024 4,889,427 1,227,310 Creation 4,512,936 119,146 Use -4,562,593 -1,172,202 As at 31 Dec 2024 4,839,770 174,254

3.7.13 Other liabilities

in EUR

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Liabilities for labour costs 40,670,858 31,260,501 35,168,543 26,848,920
Accrued costs and expenses and short-term deferred income 18,834,376 17,009,906 8,611,810 7,172,279
Non-attributable liabilities from insurance operations 22,259,381 21,316,579 14,647,112 11,073,746
Liabilities for overpayments and prepayments 10,131,815 5,720,365 9,331,886 4,865,652
Trade payables 13,617,565 14,014,947 10,242,385 10,667,819
Other current liabilities 16,168,386 12,275,041 6,556,237 5,115,143
TOTAL 121,682,381 101,597,339 84,557,975 65,743,559

As at 31 December 2024, the Company's liabilities related to labour costs include EUR 4,919,784 of provisions for the reorganisation of the work process (31 December 2023: EUR 3,054,636).

3.7.14 Income from asset management and net other operating income and expenses

Income from asset management in 2024 for the Group amounted to EUR 49,364,063 (2023: EUR 39,685,487) and for the Company to EUR 3,158,050 (2023: EUR 2,854,726). It relates to income from management fees.

Net other operating income and expenses are presented in the table below.

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Lease income 5,760,539 7,441,237 6,479,919 6,195,418
Non-attributable insurance revenue 8,538,963 8,639,175 3,566,172 7,433,299
Other operating income 15,569,281 10,702,027 2,784,210 1,990,295
Non-attributable insurance service expenses -13,879,120 -13,619,930 -7,246,365 -6,399,284
Investment property expenses -4,368,066 -4,094,708 -4,611,142 -4,166,588
Other operating expenses -19,760,185 -8,016,728 -16,834,485 -5,099,896
Total net other operating income and expenses from
operating activities		 -8,138,588 1,051,073 -15,861,691 -46,756
Net other operating income and expenses from discontinued
operations -59,651 449,475 -59,651 449,475
TOTAL -8,198,239 1,500,548 -15,921,342 402,719

Accounting report

Statement of management's responsibilities Independent auditor's report

3.7.15 Net other financial income and expenses

Tax expense in other comprehensive income

Net other financial income and expenses include interest expenses on the bonds issued by Zavarovalnica Triglav amounting to EUR 5,264,056 (2023: EUR 2,186,354).

3.7.16 Gains and losses on investments in associates

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Gains/losses on investments measured under the equity method 2,277,683 2,242,935 2,204,920 2,194,361
Dividend income from associates 0 0 2,227,551 16,391,400
Other gains/losses on investments in associates 4,666,520 0 4,666,520 0
TOTAL 6,944,203 2,242,935 9,098,991 18,585,761

In 2024, the Company recognised EUR 4,666,520 of gains on disposal of the participating interest in Nama d.d. There were no realised sales of participating interests in associates in 2023.

2024 2023
Triglav Group Before tax Tax After tax Before tax Tax After tax
Gains or losses arising from changes in the
fair value of equity securities		 344,386 -56,874 287,512 4,536,173 -722,319 3,813,854
Gains or losses arising from changes in the
fair value of debt securities		 30,812,887 -6,008,196 24,804,691 81,752,210 -10,636,023 71,116,187
Gains or losses on the valuation of
insurance contracts		 -25,645,272 5,406,134 -20,239,138 -49,101,049 7,403,718 -41,697,331
Gains or losses on the valuation of
reinsurance contracts		 1,937,612 -534,272 1,403,340 3,668,513 -1,132,642 2,535,871
Actuarial gains/losses -142,854 85,741 -57,113 -1,521,911 525,039 -996,872
Translation differences 119,945 -20,065
Other -8,654 -74,181
TOTAL OTHER COMPREHENSIVE
INCOME		 7,306,759 -1,107,467 6,310,583 39,333,936 -4,562,227 34,677,463

3.7.17 Income tax expense

Tax expense in profit or loss

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Current tax expense -20,266,652 -14,792,092 -12,616,147 -10,092,384
Minimum tax expense -427,032 0 -427,032 0
Deferred tax expense -6,930,404 9,996,850 -6,309,384 8,548,986
TOTAL TAX EXPENSE IN PROFIT OR LOSS -27,624,088 -4,795,242 -19,352,563 -1,543,398
2024 2023
Zavarovalnica Triglav Before tax Tax After tax Before tax Tax After tax
Gains or losses arising from changes in the
fair value of equity securities		 258,519 -56,874 201,645 4,332,776 -700,867 3,631,909
Gains or losses arising from changes in the
fair value of debt securities		 19,280,482 -4,153,306 15,127,177 68,395,862 -8,667,698 59,728,164
Gains or losses on the valuation of
insurance contracts		 -20,289,544 4,463,700 -15,825,844 -37,331,627 4,971,511 -32,360,116
Gains or losses on the valuation of
reinsurance contracts		 1,427,411 -314,030 1,113,380 4,091,190 -752,808 3,338,382
Actuarial gains/losses -31,908 86,644 54,736 -1,575,443 525,039 -1,050,404
TOTAL OTHER COMPREHENSIVE
INCOME		 644,960 26,134 671,094 37,912,758 -4,624,823 33,287,935

In accordance with the Corporate Income Tax Act (ZDDPO-2), the applicable tax rate in Slovenia was 22% in 2024, the same as in the preceding year. In subsidiaries operating outside Slovenia, tax rates were used as applicable in the country of operation and in compliance with the local legislation.

Search in report

in EUR

in EUR

Appendix

Accounting report

Statement of management's responsibilities Independent auditor's report

Search in report

Appendix

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Accounting profit before tax 159,042,201 21,060,436 117,584,460 15,761,154
Tax calculated based on accounting income and expenses
(at domestic rates applied to profits in the relevant countries)		 -34,331,172 -13,000,659 25,868,581 -8,656,686
Adjustments to the current year's tax return: 14,000,963 -1,791,433 -13,315,991 -1,435,698
Tax effect of income deductible for tax purposes 7,327,468 4,086,244 6,449,784 3,853,492
Tax effect of expenses deductible for tax purposes -3,611,762 -3,058,585 -2,697,302 -2,340,265
Tax relief 9,499,763 1,580,913 8,917,210 961,298
Effect of other increases/decreases in the tax base 785,494 -4,400,005 646,299 -3,910,222
Other adjustments 63,557 0 63,557 0
Current tax expense -20,266,652 -14,792,092 -12,616,147 -10,092,384
Minimum (top-up) tax expense -427,032 0 -427,032 0
Deferred tax expense -6,930,404 9,996,850 -6,309,384 8,548,986
TOTAL TAX EXPENSE -27,624,088 -4,795,242 -19,352,563 -1,543,398
Effective tax rate 17.37% 22.77% 16.46% 9.79%

Reconciliation between accounting profit and tax expense

The reconciliation of accounting profit and tax expense for 2023 was significantly impacted by the merger of Triglav, Zdravstvena zavarovalnica. A breakdown of the effects by company is presented below:

in EUR
2023 Zavarovalnica
Triglav		 Triglav, Zdravstvena
zavarovalnica		 TOTAL
Accounting profit before tax 45,561,505 -29,800,351 15,761,154
Tax calculated based on accounting income and
expenses		 -8,656,686 0 -8,656,686
Adjustments to the current year's tax return: -1,435,698 0 -1,435,698
Tax effect of income deductible for tax purposes 3,853,492 0 3,853,492
Tax effect of expenses deductible for tax purposes -2,340,265 0 -2,340,265
Tax relief 961,298 0 961,298
Effect of other increases/decreases in the tax base -3,910,222 0 -3,910,222
Current tax expense -10,092,384 0 -10,092,384
Deferred tax expense 3,193,306 5,355,680 8,548,986
TOTAL TAX EXPENSE -6,899,078 5,355,680 -1,543,398
Effective tax rate 15.14% -18.00% 9.79%

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024

The Group's current tax assets and liabilities are netted at the level of each tax jurisdiction. The Group's current tax assets as at 31 December 2024 amounted to EUR 260,573 (31 December 2023: EUR 8,491,524) and the Group's current tax liabilities as at 31 December 2024 amounted to EUR 5,633,245 (31 December 2023: EUR 571,555).

316

The Company's current tax assets and liabilities are netted. The Company's current tax assets as at 31 December 2024 amounted to EUR 2,360,480 and its current tax liabilities as at 31 December 2023 amounted to EUR 9,302,529.

The Company has no unused tax losses; at Group level they amounted to EUR 29,505,313 as at 31 December 2024 (31 December 2023: EUR 58,940,281).

Minimum tax

The top-up tax is calculated in accordance with the applicable legislation adopted by each jurisdiction, as well as OECD guidelines and commentaries published up to 31 December 2024.

The Group applied the mandatory temporary exemption under IAS 12 from recognising deferred tax assets and liabilities related to the global minimum tax.

For jurisdictions that have not met the transitional CbCR safe harbour criteria (i.e. de minimis test, simplified statutory effective tax rate test, routine profits test), the Company, as the ultimate parent company, estimated the impact of the global minimum tax on the 2024 financial statements to be EUR 427,037, based on applicable tax legislation and OECD commentaries and guidelines published by 31 December 2024.

Accounting report

Statement of management's responsibilities Independent auditor's report

4.1 Fair value measurement of assets and liabilities
4.2 Amounts spent on auditors
4.3 Government grants
4.4 Related party transactions

4.5 Contingent assets and liabilities and

Appendix

4. Other information

4.1 Fair value measurement of assets and liabilities

4.1.1 Fair value hierarchy of assets and liabilities

The following tables show the fair value of assets measured at fair value and those that are not measured at fair value but for which fair value is disclosed. The table excludes cash, receivables and other financial liabilities whose carrying amount is the best indicator of their fair value.

Fair value hierarchy of the Triglav Group's assets and liabilities

in EUR
31 Dec 2024 31 Dec 2023
Carrying
amount		 Level 1 Level 2 Level 3 Total
fair value		 Carrying
amount		 Level 1 Level 2 Level 3 Total
fair value
ASSETS - MEASURED AT FAIR VALUE
Financial investments at fair value through other comprehensive income 1,911,560,385 367,992,586 1,539,194,989 4,372,810 1,911,560,385 1,672,966,932 313,309,159 1,355,631,285 4,026,488 1,672,966,932
Debt and other fixed-return securities 1,907,187,575 367,992,586 1,539,194,989 0 1,907,187,575 1,668,940,444 313,309,159 1,355,631,285 0 1,668,940,444
Equity securities 4,372,810 0 0 4,372,810 4,372,810 4,026,488 0 0 4,026,488 4,026,488
Financial investments at fair value through profit or loss 906,463,048 726,452,642 30,164,724 149,845,682 906,463,048 740,314,111 592,633,465 32,240,449 115,440,197 740,314,111
Debt and other fixed-return securities 31,222,922 1,058,198 30,164,724 0 31,222,922 34,769,923 3,918,016 30,851,907 0 34,769,923
Equity securities 875,220,316 725,394,444 0 149,825,872 875,220,316 705,544,188 588,715,449 1,388,542 115,440,197 705,544,188
Other financial investments 19,810 0 0 19,810 19,810 0 0 0 0 0
Financial investments from financial contracts at fair value through profit or loss 493,515,077 245,046,147 226,376,415 22,092,515 493,515,077 366,826,746 170,115,240 177,124,372 19,587,134 366,826,746
Debt and other fixed-return securities 292,168,499 65,792,084 226,376,415 0 292,168,499 214,934,774 37,810,402 177,124,372 0 214,934,774
Equity securities 201,346,578 179,254,063 0 22,092,515 201,346,578 151,891,972 132,304,838 0 19,587,134 151,891,972
ASSETS FOR WHICH FAIR VALUE IS DISCLOSED
Financial investments at amortised cost 222,568,437 29,128,518 198,410,626 0 227,539,144 229,559,727 25,321,845 210,855,415 0 236,177,260
Debt and other fixed-return securities 154,222,672 29,128,518 130,347,668 0 159,476,186 156,334,533 25,321,845 136,803,226 0 162,125,071
Deposits with banks 60,833,549 0 60,474,522 0 60,474,522 65,794,876 0 65,485,320 0 65,485,320
Loans given 6,622,689 0 6,698,909 0 6,698,909 6,557,904 0 7,950,799 0 7,950,799
Other financial investments 889,527 0 889,527 0 889,527 872,414 0 616,070 0 616,070
Financial investments from financial contracts at amortised cost 245,995,862 37,567,894 201,396,265 0 238,964,159 283,215,425 56,843,688 216,323,532 0 273,167,220
Debt and other fixed-return securities 245,995,862 37,567,894 201,396,265 0 238,964,159 283,215,425 56,843,688 216,323,532 0 273,167,220
Investment property using the cost model 70,411,373 0 0 85,545,970 85,545,970 67,953,773 0 0 86,515,708 86,515,708
Subordinated debt at amortised cost 152,130,399 0 147,215,330 0 147,215,330 49,994,402 0 53,087,374 0 53,087,374

Accounting report

Statement of management's responsibilities Independent auditor's report

4.2 Amounts spent on auditors 4.3 Government grants 4.4 Related party transactions 4.5 Contingent assets and liabilities and

other off-balance sheet records

4.6 Major legal and arbitration disputes 4.7 Events after the reporting period

Appendix

Fair value hierarchy of the Zavarovalnica Triglav's assets and liabilities

Carrying
amount		 Level 1 31 Dec 2024
Level 2		 Level 3 Total
fair value		 Carrying
amount		 31 Dec 2023 Total
Level 1 Level 2 Level 3 fair value
1,026,133,476 2,899,910 1,301,734,118 1,161,179,788 237,353,180 921,185,218 2,641,391 1,161,179,789
272,700,732 1,026,133,476 0 1,298,834,209 1,158,538,398 237,353,180 921,185,218 0 1,158,538,398
0 0 2,899,910 2,899,910 2,641,391 0 0 2,641,391 2,641,391
647,498,569 20,107,544 148,154,554 815,760,668 651,624,386 516,893,782 20,830,338 113,900,267 651,624,386
0 20,107,544 0 20,107,544 22,677,800 1,847,463 20,830,338 0 22,677,800
647,498,569 0 148,134,744 795,633,313 628,946,586 515,046,319 0 113,900,267 628,946,586
0 0 19,810 19,810 0 0 0 0 0
102,520,781 95,142,959 9,879,090 207,542,830 169,625,986 89,298,067 72,480,834 7,847,086 169,625,986
27,902,894 95,142,959 0 123,045,853 96,181,144 23,700,309 72,480,834 0 96,181,144
74,617,887 0 9,879,090 84,496,977 73,444,843 65,597,757 0 7,847,086 73,444,843
26,784,245 123,406,420 0 150,190,665 142,843,306 20,840,645 129,203,850 0 150,044,495
26,784,245 111,065,373 0 137,849,618 131,083,304 20,840,645 117,765,696 0 138,606,341
0 7,151,605 0 7,151,605 7,212,364 0 7,073,871 0 7,073,871
0 5,189,442 0 5,189,442 4,547,639 0 4,364,283 0 4,364,283
13,223,692 63,604,734 0 76,828,426 86,215,285 18,046,757 66,982,354 0 85,029,111
13,223,692 63,604,734 0 76,828,426 86,215,285 18,046,757 66,982,354 0 85,029,111
0 0 59,449,713 59,449,713 43,427,181 0 0 59,495,267 59,495,267
0 147,215,330 0 147,215,330 49,994,402 0 53,087,374 0 53,087,374
1,298,834,209
2,899,910
815,760,668
20,107,544
795,633,313
19,810
207,542,830
123,045,853
84,496,977
143,875,820
131,356,383
7,212,865
5,306,572
77,040,080
77,040,080
44,971,145
152,130,399		 1,301,734,118
272,700,732

318

319

Business report

Accounting report

Statement of management's responsibilities Independent auditor's report

Appendix

in EUR
Triglav Group Zavarovalnica Triglav
Financial
investments		 Financial
investments
from
financial
contracts		 Financial
investmentss		 Financial
investments
from
financial
contracts
As at 1 Jan 2023 98,579,248 11,211,160 95,437,684 3,609,540
Acquisitions 21,600,882 8,094,848 21,600,880 4,269,553
Disposals -2,553,434 0 -2,536,468 0
Revaluation of instruments through profit or loss 2,262,044 281,126 2,500,185 -32,008
Revaluation of instruments through other comprehensive income -422,254 0 -460,838 0
Reclassification between levels 199 0 214 0
As at 31 Dec 2023 = 1 Jan 2024 119,466,685 19,587,134 116,541,657 7,847,085
Acquisitions 37,549,224 2,919,665 37,516,724 2,139,665
Disposals -8,750,666 -210,387 -8,703,002 -210,387
Revaluation of instruments through profit or loss 5,471,241 -203,897 5,312,902 102,726
Revaluation of instruments through other comprehensive income 354,266 0 258,519 0
Exchange rate differences 127,742 0 127,663 0
As at 31 Dec 2024 154,218,492 22,092,515 151,054,463 9,879,090

4.1.2 Movement in financial investments classified in Level 3 of the fair value hierarchy

The value of financial investments classified into Level 3 increased in 2024 predominantly due to the payments into alternative investment funds. The increase is reduced by payments received from alternative investment funds, which represent the bulk of the "sales" item. The "revaluation through profit or loss" item, which significantly contributes to the overall increase in financial investments classified into level 3, is also mainly a result of changes in the value of alternative investment funds. In 2024, there were no disposals of financial investments classified in Level 3 of the fair value hierarchy either in the Group or the Company. In 2023, the disposals of financial investments in the Group and the Company amounted to EUR 3,487,156 in total. The gain on disposal of EUR 63,385 was recognised in the statement of profit or loss.

4.1.3 Sensitivity analysis of non-marketable securities

Sensitivity analysis of financial investments classified in Level 3 is disclosed below. The sensitivity analysis shows how much the fair values of these financial investments would increase or decrease in the case of differently applied assumptions that are not based on observable market data. The sensitivity analysis considered a median scenario of value estimates.

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Non-marketable assets
(Level 3)		 176,291,195 139,053,819 160,913,743 124,388,744
Estimated value deviation -42,882,841/17,782,049 -33,756,788/14,202,985 -39,454,319/16,253,708 -30,464,312/12,519,336

With regard to investments valued using model-based valuation techniques, the value deviation is determined in the valuation process with adjustments made to key assumptions (price of invested capital, growth rate). For non-valued investments, ±15% of the change in investment value is taken into account in calculating the deviation and asymmetric –25% and +10% of the change in investment value for alternative investment funds.

Accounting report

Appendix

4.1.4 Reclassification of financial investments among levels

Reclassification of financial investments of the Triglav Group among levels

in EUR
2024 2023
Reclassification
from Level 1 to
Level 2		 Reclassification
from Level 2 to
Level 1		 Reclassification
from Level 2 to
Level 1
Financial investments
Debt and other fixed-return securities 220,885,977 202,183,424 217,059,836 112,772,641
TOTAL 220,885,977 202,183,424 217,059,836 112,772,641
in EUR
2024 2023
Reclassification
from Level 1 to
Level 2		 Reclassification
from Level 2 to
Level 1		 Reclassification
from Level 1 to
Level 2		 Reclassification
from Level 2 to
Level 1
Financial investments from financial contracts
Debt and other fixed-return securities 54,785,449 28,683,221 48,325,659 49,016,213
TOTAL 54,785,449 28,683,221 48,325,659 49,016,213

Reclassification of financial investments of Zavarovalnica Triglav among levels

in EUR
2024 2023
Reclassification
from Level 1 to
Level 2		 Reclassification
from Level 2 to
Level 1		 Reclassification
from Level 1 to
Level 2		 Reclassification
from Level 2 to
Level 1
Financial investments
Debt and other fixed-return securities 103,627,024 130,040,509 179,339,905 106,305,586
TOTAL 103,627,024 130,040,509 179,339,905 106,305,586
in EUR
2024 2023
Reclassification
from Level 1 to
Level 2		 Reclassification
from Level 2 to
Level 1		 Reclassification
from Level 1 to
Level 2		 Reclassification
from Level 2 to
Level 1
Financial investments from financial contracts
Debt and other fixed-return securities 22,185,905 14,171,073 7,667,349 21,044,425
TOTAL 22,185,905 14,171,073 7,667,349 21,044,425

4.2 Amounts spent on auditors

The contracted value of audit services provided by Deloitte Revizija d.o.o. and other firms in its network for 2024 is shown in the table below.

in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Auditing of the Annual Report 514,731 902,024 223,313 323,143
Other assurance and related services 349,899 131,675 312,143 68,808
TOTAL 864,630 1,033,698 535,457 391,951

4.3 Government grants

The following are government grants received by the Company in the form of:

  • reimbursements of labour costs by the state;
  • government grants received as part of aid measures in response to unfavourable developments in the economy (primarily rising energy prices);
  • incentives for the employment of specific categories of workers;
  • funds obtained through public tenders, both for co-financing costs and for the purchase of specific assets.
in EUR
Triglav Group Zavarovalnica Triglav
2024 2023 2024 2023
Reimbursements of labour costs by the state 2,520,955 2,939,619 2,052,313 2,640,393
Government grants received in the framework of aid measures 197,420 231,202 150,769 167,253
Government incentives for the employment of specific
categories of workers		 32,350 0 0 0
Funds obtained in public tenders for co-financing of costs 5,860 145,453 0 140,138
Funds obtained in public tenders for the acquisition of assets 10,996,355 0 10,996,355 0
Other government grants 39,277 193,542 0 0
TOTAL 13,792,217 3,509,816 13,199,437 2,947,784

Cost-related grants reduce the costs to which they relate or are recognised as other income. Asset-related grants are recognised as deferred income and transferred to profit or loss on a straight-line basis over the useful life of the asset.

All government grants and subsidies received in 2024 and 2023 were non-refundable.

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4.4 Related party transactions

4.5 Contingent assets and liabilities and other off-balance sheet records 4.6 Major legal and arbitration disputes

4.7 Events after the reporting period

Appendix

4.4 Related party transactions

Related party transactions are disclosed separately for the Triglav Group and Zavarovalnica Triglav:

  • transactions with shareholders and shareholder-related companies;
  • transactions with subsidiaries are disclosed only at Company level and include transactions with entities in which the Company has a dominant influence; at Group level, these transactions are eliminated in the consolidation processes;
  • transactions with associates in which the Group or the Company have significant influence;
  • transactions with the management which is represented by the members of the Management Board and the Supervisory Board.

Transactions with shareholders and shareholder-related companies

The largest shareholders of Zavarovalnica Triglav are Zavod za pokojninsko in invalidsko zavarovanje Slovenije (Pension and Disability Insurance Institute of Slovenia – ZPIZ) and Slovenski državni holding (Slovenian Sovereign Holding – SDH), which hold a 34.47% and a 28.09% participating interest respectively. The only material transaction in 2024 with the two largest shareholders was the dividend payout. Dividends of EUR 13,714,410 were paid to Zavod za pokojninsko in invalidsko zavarovanje (the Pension and Disability Insurance Institute of Slovenia) and dividends of EUR 11,176,030 to Slovenski državni holding (the Slovenian Sovereign Holding).

The shareholder-related companies are also those in which SDH has a majority participating interest or dominant influence. As at 31 December 2024, there were 55 such companies, with which neither the Company nor the Group have significant transactions.

The related party services are charged at the same prices as those applying to unrelated parties.

Transactions of Zavarovalnica Triglav with subsidiaries and associates

Transactions between Group companies primarily related to reinsurance, underwriting commissions, investment and real property management, and intercompany rentals. The income and expenses generated by the Company with the Group companies in 2024 are shown in the table below.

in EUR
2024 2023
INCOME AND EXPENSES
Written insurance premium 25.084.196 26.524.036
Written reinsurance premium -156.090.283 -141.057.331
Income from reinsurance commissions 35.915.360 33.667.221
Other income from insurance operations 1.642.291 1.226.473
Interest income 32.681 0
Rental income 1.118.032 1.053.911
Other income 8.461.675 7.127.989
TOTAL INCOME -83.836.047 -71.457.701
Claims settled -4.129.338 -10.843.457
Reinsurers' share in claims 86.959.585 113.959.453
Exprense from reinsurance commissions -5.614.726 -5.745.088
Expenses from insurance contracts -3.059.948 -200.965
Finance expenses -17.457 -19.554
Other expences -769.635 -605.413
Operating costs -8.857.044 -7.317.227
TOTAL EXPENSES 64.511.438 89.227.749

The related party services among Group members are charged at the same prices as those applying to unrelated parties. Pricing is based on the external or internal comparable uncontrolled price method and the cost allocation method.

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4.4 Related party transactions

Appendix

As at 31 December 2024, Zavarovalnica Triglav recognised receivables and liabilities from its subsidiaries as shown in the table below.

in EUR
31 Dec 2024 31 Dec 2023
ASSETS
Right-of-use of assets 571.198 661.080
Loans 1.662.903 1.070.031
Receivables from insurance and reinsurance operations 25.163.636 70.817.753
Short term receivables from financing 19.195 9.610
Other short-term receivables 1.949.297 188.759
LIABILITIES
Liabilities from insurance and reinsurance operations 22.556.998 31.243.881
Lease liabilities 613.435 699.719
Other short-term liabilities 201.499 635.840

In 2024, the Group and the Company had no significant transactions with associates and joint ventures.

By issuing a letter of comfort, Triglav INT d.o.o. acknowledged the unprofitable operations of its subsidiary, Triglav Osiguranje d.d., Zagreb, and confirmed its intention to ensure that the subsidiary has sufficient assets to meet all its liabilities for at least the next 12 months from the reporting date. The letter of comfort does not constitute a direct liability but represents a contingent liability that could impact the Group's financial position if the subsidiary is unable to settle its liabilities using its own funds. The Group regularly monitors the subsidiary's financial position and evaluates the potential financial impact on its consolidated financial statements.

Management and supervisory bodies and their remuneration

In 2024, the Management Board members received the following remuneration:

in EUR
First and last name Fixed remuneration –
gross (1)*		 Variable remuneration
(bonuses) – gross (2)		 Total gross
(3 = 1 + 2)		 Total remuneration –
net (4)		 Insurance premium –
benefits and SVPI (5)**		 Other benefits
(6)***		 Total benefits and SVPI
(7 = 5 + 6)
Andrej Slapar 227,408 46,139 273,547 90,585 76,975 5,397 82,372
Uroš Ivanc 216,173 43,832 260,005 88,628 55,496 0 55,496
Tadej Čoroli 216,173 43,832 260,005 88,541 55,490 2,344 57,834
Blaž Jakič 216,173 13,405 229,578 72,191 55,495 11,474 66,969
Marica Makoter 216,173 43,832 260,005 88,058 55,496 937 56,433
Barbara Smolnikar**** 0 5,330 5,330 3,114 0 0 0
David Benedek**** 0 5,330 5,330 3,114 0 0 0
TOTAL 1,092,100 201,700 1,293,800 434,231 298,952 20,152 319,104

* Fixed remuneration includes salary, pay for annual leave and jubilee benefits.

** Insurance premiums include premiums for supplemental voluntary pension insurance, accident insurance, liability insurance and other insurance.

*** Other benefits include the use of a company vehicle.

**** The commencement or termination of the function of a Management Board member is described in more detail in Section 3.2 of the Business Report.

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4.1 Fair value measurement of assets and liabilities 4.2 Amounts spent on auditors 4.3 Government grants

4.4 Related party transactions

4.5 Contingent assets and liabilities and other off-balance sheet records

4.6 Major legal and arbitration disputes 4.7 Events after the reporting period

Appendix

The disclosure does not include travel expenses, accommodation costs and daily allowance as, by their nature, they are not considered remuneration of the Management Board.

As at 31 December 2024, Zavarovalnica Triglav had the following liabilities to the Management Board members:

First and last name Deferred variable
remuneration (bonuses) –
gross (1)		 Fixed remuneration (salary) –
gross and reimbursement (2)		 Total liabilities (3=1+2)
Andrej Slapar 54,334 18,710 73,044
Uroš Ivanc 51,617 18,421 70,038
Tadej Čoroli 51,617 17,775 69,392
Blaž Jakič 13,405 17,775 31,180
Marica Makoter 51,617 17,775 69,392
Barbara Smolnikar 29,292 0 29,292
David Benedek 33,102 0 33,102
TOTAL 284,984 90,456 375,440

As at 31 December 2024, the Company did not have any significant amounts receivable from Management Board members.

The criteria for the performance assessment of the Management Board members are proposed by the Appointment and Remuneration Committee and approved by the Supervisory Board. The purpose of these criteria is to maximise the objective monitoring of the achievement of annual and mediumterm objectives and to periodically assess the performance of the Management Board members. The performance criteria are designed to follow the Company's annual and medium-term business objectives adopted in the Company's annual business plans and strategic documents. The definition of a specific objective includes the following: its description, the expected target value, the assigned weight and the method for measuring or assessing its achievement. The method used to calculate the performance measures deviations from the set objectives by awarding a bonus for overperformance and through pay deduction from the basic salary of a Management Board member for underperformance.

The annual performance bonus is paid in three installments. The first half is paid within 30 days of the Supervisory Board approving the annual report and adopting a resolution on the bonus amount, or, in the event the annual report is approved at the General Meeting of Shareholders, within 30 days of the General Meeting of Shareholders approving the annual report and the Supervisory Board adopting a resolution on the bonus amount. The remaining 40% of the bonus is paid after two years, and 10% after three years; however, all three payments must be proportionate to the period of the office being held in a particular calendar year.

The Management Board members are entitled to severance pay equalling six times the average monthly basic salary they received as board members, if they are dismissed for economic and business reasons and their employment is terminated as a consequence. Severance is paid within one month of dismissal.

In 2024, Zavarovalnica Triglav paid EUR 23,288,899 in remuneration to employees under an individual agreement (2023: EUR 20,888,743), of which EUR 20,834,884 in gross salaries (2023: EUR 18,626,905) and EUR 2,454,015 in other remuneration (2023: EUR 2,261,838). The amounts do not include meal and travel allowances.

Membership in the Supervisory Board and its committees is presented in more detail in Business Report; presented below is the remuneration received by the members of the Supervisory Board and its committees in 2024.

in EUR
First and last name Flat-rate
remuneration –
gross (1)		 Attendance
fees –
gross (2)		 Total gross
(1 + 2)		 Total net Travel
expenses –
gross		 Travel
expenses –
net
Andrej Andoljšek 30,000 5,885 35,885 26,270 424 310
Tomaž Benčina 22,500 4,290 26,790 19,612 1,372 1,004
Monica Cramer Manhem 20,111 3,025 23,136 17,930 10,006 7,754
Barbara Nose 12,152 2,145 14,297 10,466 0 0
Rok Ponikvar 7,437 1,155 8,592 5,391 1,739 1,091
Igor Stebernak 10,200 2,200 12,400 8,313 215 144
Tim Umberger 23,214 4,246 27,460 20,102 621 454
Jure Valjavec 15,063 4,510 19,573 14,328 864 632
Aleš Košiček 21,604 5,621 27,225 19,931 621 454
Janja Strmljan Čevnja 20,111 3,245 23,356 17,098 616 451
Katarina Sitar Šuštar* 1,400 0 1,400 1025 0 0
Luka Kumer* 6,646 1,595 8,241 6,033 0 0
Mateja Lovšin Herič* 2,224 1,320 3,544 2,594 0 0
TOTAL 192,662 39,237 231,899 169,093 16,478 12,294

* External members sitting on committees.

All the abovementioned remuneration of the members of the Management Board and the Supervisory Board represents the remuneration received at Zavarovalnica Triglav, d.d. In the other Group companies, these members did not receive any remuneration that would relate to the period of performing their function at Zavarovalnica Triglav.

As at 31 December 2024, the Company did not record any material receivables from or liabilities to Supervisory Board members.

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4.6 Major legal and arbitration disputes

4.7 Events after the reporting period

Appendix

4.5 Contingent assets and liabilities and other off-balance sheet records

in EUR
Triglav Group Zavarovalnica Triglav
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Contingent assets
Uncollected subrogation receivables 63,271,940 62,762,435 49,961,621 47,915,673
Contingent receivables 1,204,690 34,067,804 789,174 62,769,507
Derivative financial instruments 13,246,294 0 13,246,294 0
Approved undrawn loans 1,300,000 1,300,000 1,300,000 1,300,000
Contingent liabilities
Other contingent liabilities 2,050,719 1,636,870 47,031 294,455
Bonds, guarantees and other sureties issued 79,997,504 169,991,733 76,969,852 156,558,114
Other off-balance sheet records
Alternative investments 97,797,106 106,998,447 97,140,413 105,529,254
Assets under management 2,260,084,264 1,699,308,044 0 0

Contingent liabilities by maturity – Triglav Group

in EUR
31 Dec 2024 Not defined Less than
1 year		 1-5 years 5-10 years TOTAL
Bonds, guarantees and other sureties issued 1,631,776 0 418,943 0 2,050,719
Other contingent liabilities 1,300,000 348,299 76,301,845 2,047,361 79,997,505
TOTAL 2,931,776 348,299 76,720,788 2,047,361 82,048,224
in EUR
Less than
31 Dec 2023 Not defined 1 year 1-5 years 5-10 years TOTAL
Bonds, guarantees and other sureties issued 1,636,870 0 0 0 1,636,870
Other contingent liabilities 1,813,361 12,133,619 154,194,550 1,850,203 169,991,733
TOTAL 3,450,231 12,133,619 154,194,550 1,850,203 171,628,603

Contingent liabilities by maturity – Zavarovalnica Triglav

in EUR
31 Dec 2024 Not defined Less than
1 year		 1-5 years 5-10 years TOTAL
Bonds, guarantees and other sureties issued 47,031 0 0 0 47,031
Other contingent liabilities 0 0 74,922,491 2,047,361 76,969,852
TOTAL 47,031 0 74,922,491 2,047,361 77,016,883
in EUR
31 Dec 2023 Not defined Less than
1 year		 1-5 years 5-10 years TOTAL
Bonds, guarantees and other sureties issued 294,455 0 0 0 294,455
Other contingent liabilities 513,361 0 154,194,550 1,850,203 156,558,114
TOTAL 807,816 0 154,194,550 1,850,203 156,852,569

4.6 Major legal and arbitration disputes

As of 31 December 2024, the Group and the Insurance Company are not involved in any litigation that would give rise to significant actual or potential liabilities, except for those included in the assessment of liabilities under insurance contracts.

4.7 Events after the reporting period

In the period between the end of the reporting period and the date when the financial statements were authorised for issue, no adjusting events occurred that would affect the compiled consolidated and separate financial statements of Zavarovalnica Triglav for 2024.

Appendix

and topical standards that derive from

Appendix 1: Triglav Group as at 31 December 2024*

Insurance

Zavarovalnica Triglav d.d. Pozavarovalnica Triglav Re d.d. Triglav Osiguranje a.d.o., Belgrade Triglav Osiguranje d.d., Zagreb
Address Miklošičeva cesta 19, Ljubljana, Slovenia Miklošičeva cesta 19, Ljubljana, Slovenia Milutina Milankovića 7a, Novi Beograd, Serbia Antuna Heinza 4, Zagreb, Croatia
Phone ++ 386 (1) 474 72 00, 080 555 555 ++ 386 (1) 474 79 00 ++ 381 (11) 330 51 00 0800 20 20 80
Email [email protected] [email protected] [email protected] [email protected]
Website www.triglav.si, www.triglav.eu www.triglavre.si www.triglav.rs www.triglav.hr
Activity Insurance Reinsurance Insurance Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group 100.00%/100.00% - /100.00% - /100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group 100.00%/100.00% - /100.00% - /100.00%
Share capital EUR 73,701,392 EUR 4,950,000 EUR 19,661,348 EUR 48,228,552
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group EUR 4,950,000/EUR 4,950,000 - /EUR 19,661,348 - /EUR 48,228,552
Triglav Osiguranje d.d., Sarajevo Lovćen Osiguranje a.d., Podgorica Lovćen životna osiguranja a.d., Podgorica Triglav Osiguruvanje a.d., Skopje
Address Dolina 8, Sarajevo, Bosnia and Herzegovina Ulica slobode 13a, Podgorica, Montenegro Ulica Marka Miljanova 29/III, Podgorica,
Montenegro		 Bulevar 8-mi Septemvri br. 16, Skopje,
North Macedonia
Phone ++ 387 (33) 252 110 ++ 382 (20) 404 404 ++ 382 (20) 231 882 ++ 389 (2) 510 22 22
Email [email protected] [email protected] [email protected] [email protected]
Website www.triglav.ba www.lo.co.me www.lo.co.me www.triglav.mk
Activity Insurance Insurance Insurance Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group - /97.78% - /99.07% - /99.07% - /82.01%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group - /98.87% - /99.07% - /99.07% - /82.01%
Share capital EUR 10,861,337 EUR 10,459,925 EUR 3,700,000 EUR 3,008,425
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group - /EUR 10,620,215 - /EUR 10,362,648 - /EUR 3,665,590 - /EUR 2,467,209
Triglav Osiguruvanje Život a.d., Skopje Triglav Osiguranje a.d., Banja Luka
Address Bulevar 8-mi Septemvri br. 18, Skopje,
North Macedonia		 Ulica Prvog krajiškog korpusa 29, Banja Luka,
Bosnia and Herzegovina
Phone ++ 389 (2) 510 22 01 ++ 387 (51) 215 262
Email [email protected] [email protected]
Website www.triglavzivot.mk www.triglavrs.ba
Activity Insurance Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group - /97.43% - /97.78%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group - /97.43% - /100.00%
Share capital EUR 7,002,583 EUR 4,777,227
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group - /EUR 6,822,617 - /EUR 4,671,173

* Note: Company details are provided for the parent company and subsidiaries of the Triglav Group.

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and topical standards that derive from

other EU legislation 7. GRI, SASB in SDG Content Index

Asset management Business report

Triglav Skladi d.o.o. Triglav, pokojninska družba d.d. Triglav, Upravljanje nepremičnin d.o.o. Triglav penzisko društvo a.d., Skopje
Address: Dunajska cesta 20, Ljubljana, Slovenia Dunajska cesta 22, Ljubljana, Slovenia Dunajska cesta 22, Ljubljana, Slovenia Bulevar 8-mi Septemvri br. 18, Skopje,
North Macedonia
Phone: ++ 386 (1) 300 73 00, 080 10 19 ++ 386 (1) 47 00 840, 080 555 555 ++ 386 (1) 47 44 440 ++ 389 (2) 510 21 90, (2) 551 50 10
Email: [email protected] [email protected] [email protected] [email protected]
Website: www.triglavskladi.si www.triglavpokojnine.si www.triglav-upravljanje.si www.triglavpenzisko.mk
Activity: Mutual fund management Pension funds Asset management Pension funds
Equity stake of Zavarovalnica Triglav/the Triglav Group 100.00%/100.00% 100.00%/100.00% 100.00%/100.00% 100.00%/100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group 100.00%/100.00% 100.00%/100.00% 100.00%/100.00% 100.00%/100.00%
Share capital EUR 563,345 EUR 25,756,808 EUR 3,160,113 EUR 7,356,000
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group EUR 563,345/EUR 563,345 EUR 25,756,808/EUR 25,756,808 EUR 3,160,113/EUR 3,160,113 EUR 7,356,000/EUR 7,356,000
Triglav Fondovi d.o.o., Sarajevo Triglav upravljanje nekretninama d.o.o.,
Zagreb		 Triglav upravljanje nekretninama d.o.o.,
Podgorica		 Triglav upravljanje nekretninama d.o.o.,
Sarajevo
Address: Ul. Mehmed paše Sokolovića br. 15, Sarajevo,
Bosnia and Herzegovina		 Ulica Josipa Marohnića 1/1, Zagreb, Croatia Džordža Vašingtona 44, Podgorica,
Montenegro		 Branilaca Sarajeva 45, Sarajevo,
Bosnia and Herzegovina
Phone: ++387 33 277 270 ++ 386 31 370 370 ++ 386 31 370 370 ++ 387 (0)61 182 345
Email: [email protected]
Website: www.triglavfondovi.ba
Activity: Management of financial funds Asset management Asset management Asset management
Equity stake of Zavarovalnica Triglav/the Triglav Group - /63.58% - /100.00% - /100.00% - /100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group - /63.20% - /100.00% - /100.00% - /100.00%
Share capital EUR 639,118 EUR 514,673 EUR 1,413,381 EUR 998,710
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group - /EUR 404,351 - /EUR 514,673 - /EUR 1,413,381 - /EUR 998,710
Triglav upravuvanje so nedvižen imot
DOOEL, Skopje
Address: Dame Gruev br. 8, Skopje, North Macedonia
Phone: ++ 386 31 370 370
Email:
Website:
Activity: Asset management
Equity stake of Zavarovalnica Triglav/the Triglav Group - /100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group - /100.00%
Share capital EUR 621,000
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group - /EUR 621,000

Appendix

and topical standards that derive from

Triglav INT d.o.o. Triglav zdravje asistenca d.o.o. Triglav Svetovanje d.o.o. Triglav Avtoservis d.o.o.
Address Dunajska cesta 22, Ljubljana, Slovenia Dunajska cesta 22, Ljubljana, Slovenia Ljubljanska cesta 86, Domžale, Slovenia Verovškova 60b, Ljubljana, Slovenia
Phone ++ 386 (1) 430 95 34 ++ 386 (1) 893 84 40 ++ 386 (1) 724 66 50, 080 15 10 ++ 386 (1) 580 68 72
Email [email protected] [email protected] [email protected] [email protected]
Website www.triglav-int.si www.tza.si www.triglav-svetovanje.si www.triglav-avtoservis.si
Activity Holding company Other human health activities Insurance agency activities Maintenance and repair of motor vehicle
Equity stake of Zavarovalnica Triglav/the Triglav Group 100.00% /100.00% - /100.00% 100.00%/100.00% 100.00%/100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group 100.00%/100.00% - /100.00% 100.00%/100.00% 100.00%/100.00%
Share capital EUR 77,180,734 EUR 7,500 EUR 8,763 EUR 43,663
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group EUR 77,180,734 /EUR 77,180,734 - /EUR 7,500 8,763 /EUR 8,763 43,663 /EUR 43,663
Lovćen auto d.o.o., Podgorica Autocentar BH d.o.o., Sarajevo Sarajevostan d.o.o., Sarajevo Triglav Savjetovanje d.o.o., Sarajevo
Address Novaka Miloševa 6/2, Podgorica, Montenegro Džemala Bijedića 165b, Sarajevo,
Bosnia and Herzegovina		 Bulevar Meše Selimovića 12, Sarajevo,
Bosnia and Herzegovina		 Dolina 8, Sarajevo, Bosnia and Herzegovina
Phone ++ 382 (69) 810 005 ++ 387 (33) 715 935 ++ 387 (33) 276 690 ++ 387 (3) 361 81 06
Email [email protected] [email protected] [email protected] [email protected]
Website www.lovcen-auto.me www.autocentarbh.ba www.sarajevostan.com.ba www.triglav-savjetovanje.ba
Activity Roadworthiness tests and vehicle registration Roadworthiness tests and vehicle registration Asset management Insurance ageny activities
Equity stake of Zavarovalnica Triglav/the Triglav Group - /99.07% - /97.78% - /90.95% - /97.78%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group - /99.07% - /98.87% - /91.97% - /98.87%
Share capital EUR 12,850,000 EUR 1,376,952 EUR 1,182,323 EUR 153,388
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group - /EUR 12,730,495 - /EUR 1,346,384 - /EUR 1,075,323 - /EUR 149,983
Triglav Savetovanje d.o.o., Belgrade,
u likvidaciji		 Triglav Savjetovanje d.o.o., Zagreb,
u likvidaciji		 Triglav International d.o.o., Belgrade Eskulap d.o.o.
Address Zelengorska 1g, Belgrade, Serbia Sarajevska cesta 60, Zagreb, Croatia Milutina Milankovića 7a, Belgrade, Serbia Redelonghijeva ulica 12, Ljubljana, Slovenia
Phone ++ 381 (1) 165 58 497 ++ 385 (1) 344 41 22 ++386 (1) 281 13 76, (1) 893 84 51
Email [email protected] [email protected] [email protected] [email protected]
Website www.triglav-savetovanje.rs www.triglav-savjetovanje.hr www.tza.si/webapp/tza/pediatrija
Activity Insurance ageny activities Insurance ageny activities Holding company Other human health activities
Equity stake of Zavarovalnica Triglav/the Triglav Group - /100.00% - /100.00% - /100.00% - /100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group - /100.00% - /100.00% - /100.00%
Share capital EUR 30,119 EUR 973,572 EUR 513,611 EUR 21,000
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group - /EUR 30,119 - /EUR 973,572 - /EUR 513,611 - /EUR 21,000

Appendix

Vse bo v redu, zavod Zavarovalnice Triglav
za družbeno odgovorne aktivnosti
Address Miklošičeva cesta 19, Ljubljana, Sloveniaa
Phone ++386 (1) 47 47 518
Email [email protected]
Website www.vsebovredu.triglav.si
Activity Humanitarian and charity activities
Equity stake of Zavarovalnica Triglav/the Triglav Group 100.00%/100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group 100.00%/100.00%
Share capital EUR 100,000
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group EUR 100,000/EUR 100,000

Appendix

Appendix 2: Business network of the Triglav Group

In 2024, the Triglav Group accelerated the expansion of its well-developed and widely accessible business network, adopting a multi-channel approach and hybrid business models. Strategic partnerships and collaborations with contractual sales partners were strengthened, alongside enhancements to online and assistance services, as well as digital underwriting options. Additionally, since October 2023, the Group has been operating through a branch in Greece.

The Group's insurance sales network consists of insurance agents, sales clerks and employees at its own points of sale. In 2024, the external sales network in Slovenia included 437 outsourcers. In the non-life insurance segment, the Group successfully partners with car dealerships, leasing companies, roadworthiness test providers, insurance agencies, travel agencies, insurance brokerage and agency companies, and consumer electronics stores. In the life insurance segment, the Group works with insurance agency companies, insurance brokerage companies and banks providing insurance agency services. Before entering into a business relationship with a partner, a due diligence and risk assessment with respect to personal data processing is carried out.

The Group has an extensive own and external sales network across its subsidiaries in the Adria region, collaborating with over 1,640 external partners in these markets. Cooperation with brokers, agencies and other partners was strengthened, while the bank sales channel was reduced. The largest number of partnerships is in Serbia, where the number of partners has increased further. In Croatia, both the own and external sales networks were strengthened. In Bosnia and Herzegovina, the partners Triglav Osiguranje, Banja Luka were merged into the Triglav Osiguranje Sarajevo business network. In North Macedonia, the size of the own sales network was maintained, while partnerships in alternative sales channels were expanded. The sales network in Montenegro remained stable in 2024.

In claims settlement, the size of the partner network was adjusted to meet the demand for existing and new products. Application support for assistance contractors was updated, enabling the automated capture of various types of vehicle damage and the automatic assessment of repair feasibility. Processes were modernised, and new vehicle valuation equipment was developed to handle mass hail claims.

Insurance

Zavarovalnica Triglav d.d., Ljubljana – registered office

Regional centres:

  • Central Slovenia region
  • Gorenjska region
  • West region
  • South region
  • North region
  • East region

Zavarovalnica Triglav's existing sales network is available at www.triglav.si/uporabno/poslovalnice.

Appendix

Asset management

  • Triglav Skladi d.o.o., Ljubljana registered office, the list of branch offices at www.triglavskladi.si/obiscite-nas.
  • Triglav, pokojninska družba d.d. registered office
  • Triglav, Upravljanje nepremičnin d.o.o., Ljubljana registered office
  • Triglav Fondovi d.o.o., Sarajevo registered office
  • Triglav penzisko društvo a.d., Skopje registered office
  • Triglav upravljanje nekretninama d.o.o., Zagreb registered office
  • Triglav upravljanje nekretninama d.o.o., Podgorica registered office
  • Triglav upravljanje nekretninama d.o.o., Sarajevo registered office
  • Triglav upravuvanje so nedvižen imot DOOEL, Skopje registered office

Other

  • Triglav INT, holdinška družba d.o.o., Ljubljana registered office
  • Triglav zdravje asistenca d.o.o., Ljubljana registered office
  • Triglav Svetovanje d.o.o., Domžale registered office
  • Triglav Savjetovanje d.o.o., Sarajevo registered office
  • Triglav Savjetovanje d.o.o., Zagreb, in liquidation registered office
  • Triglav Savetovanje d.o.o., Belgrade, in liquidation registered office
  • Triglav Avtoservis d.o.o., Ljubljana registered office
  • Lovćen auto d.o.o., Podgorica registered office, the list of branch offices at lovcen-auto.me/lokacije.
  • Autocentar BH d.o.o., Sarajevo registered office, the list of branch offices at www.autocentarbh.ba/poslovna-mreza.
  • Sarajevostan d.o.o., Sarajevo registered office
  • Triglav International d.o.o., Belgrade registered office
  • Eskulap d.o.o., Ljubljana registered office

330

Appendix

other EU legislation 7. GRI, SASB in SDG Content Index

Cedent

A party to a reinsurance contract who passes a portion of their assumed risks to reinsurance. The recipient of those risks is usually an insurance company. To cede means to pass a portion of assumed risk to a reinsurance company.

The activity of a reinsurance company to assume from other insurance companies and reinsurance

The legally justified amount of net profit for the year (net earnings for the year), net profit brought forward (retained earnings) and reserves from profit, which in accordance with the decision of the insurance company's management board is first used to increase reserves (legal reserves, treasury share reserves and treasury shares, and statutory reserves) and other reserves according to the supervisory board's decision. The remainder, referred to as accumulated profit, is allocated by the general meeting of

Appendix 3: Glossary of terms

Total return on share

Inward reinsurance

Accumulated profit

The sum of growth in the share price in the accounting period and the dividend yield as at the reporting date.

Net earnings per share

The ratio of net earnings in the accounting period which refers to the ordinary shareholders of the controlling company to the weighted average number of ordinary shares less ordinary shares held by Zavarovalnica Triglav or the Triglav Group members.

Free float

Shares held by shareholders who own 5% or less of shareholders' equity.

companies the portion of the risk which exceeds their retention limits.

shareholders to dividends, other reserves, carry-forwards and other purposes.

Dividend yield

The ratio of gross dividends per share to price per share on a given day.

Economic value distributed

Comprises claims incurred, net reinsurance service result, finance expenses from financial and insurance contracts, other expenses, dividend payments, labour costs, tax expense and community investment (prevention, donations, sponsorships).

Supplemental insurance/rider

Insurance that is underwritten as a supplement to another (precisely defined) insurance and that cannot be underwritten independently.

Investment return/investment result

A difference between income and expenses from financial investments. Income from financial investments comprises income from investments in associates and income from investments (interest income, gains on disposal of investments and other income from investments). Expenses from financial investments comprise expenses from investments in associates and expenses from investments (impairment of investments, losses on the disposal of investments and other expenses from investments). Return on own investment portfolio does not include unit-linked life insurance assets and financial investments from financial contracts.

Endowment (for life insurance products with a savings component)

An insured event in which the insurance company pays the sum insured, together with bonuses after the insured survives the agreed insurance period.

Financial investments

On initial recognition, a financial investment is classified into one of the following measurement categories:

  • financial investments measured at fair value through profit or loss (FVTPL),
  • financial investments measured at amortised cost (AC),
  • financial assets measured at fair value through other comprehensive income (FVOCI).

Financial contracts

Contracts that take the form of an insurance contract but do not meet the definition of an insurance contract under IFRS 17. Distinct investment components of pension insurance contracts are also treated as financial contracts because these contracts do not bear insurance risk during the accumulation (savings) phase.

Capitalisation

The reduction of sums insured in life insurance with a savings component, which is carried out if the policyholder stops paying the premium. In addition to standard criteria for setting the premium (gender and age of the insured), the amount of the sum insured depends primarily on the number of paid-in premiums and the remaining insurance term.

Book value per share

The ratio of shareholders' equity to the number of outstanding shares as at the reporting date.

Onerous contracts

Non-profitable insurance contracts where all cash flows arising from an insurance contract together represent a negative net present value of the cash flow.

Composite (or universal, general) insurance company

An insurance company that conducts non-life and life insurance business.

Gross/net

In the insurance industry, the terms gross and net typically relate to quantities and ratios before and after the deduction for reinsurance.

Own Risk and Solvency Assessment (ORSA)

The insurance company's own assessment of the risks to which it is exposed in the course of its business, including the risks to which it may be exposed in the future, and an assessment of the adequacy of own funds available to cover them.

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Appendix

Measurement of insurance contracts under MSRP 17

The following methods are used to measure insurance contracts:

  • The general model or Building Block Approach (BBA) is the default model used for all long-term insurance contracts.
  • The simplified approach or Premium Allocation Approach (PAA) is used for the measurement of insurance contracts with short-term coverage (usually applicable to non-life insurance policies with short-term coverage).
  • The Variable Fee Approach (VFA) is typically applied to life insurance contracts with direct participation features (unit-linked contracts).

Operating expenses

Operating expenses are recognised as original expenses by nature. They are split into attributable and non-attributable costs to insurance contracts. Attributable costs comprise acquisition costs, claim handling expenses, management costs and other administrative costs and, as such, are attributed to the individual groups of insurance contracts.

Surrender

The termination of a life insurance policy that results in the payout of the value thereof (saved assets and mathematical provisions less the costs incurred by the insurance company).

Contractual Service Margin (CSM)

Comprises the unearned profit that the company expects to earn from insurance contracts. It is calculated based on expected future cash flows (inflows and outflows), taking into account the time value of money and risk adjustment for non-financial risk.

Share average daily turnover

The ratio of the total value of share turnover in the accounting period to the number of trading days in that period.

Reinsurance

Reinsurance is the business of accepting risks ceded by an insurance or reinsurance company.

Prevention

The portion of non-life insurance premium that an insurance company allocates to prevention activities to mitigate future risks.

Associate

A company in which another entity directly or indirectly holds between 20% and 50% of voting rights, and thus has a significant effect on capital, but does not control that company.

Insurance revenue

Revenue from insurance contracts issued under IFRS 17 that do not include a savings component.

Risk Adjustment for non-financial risk (RA)

Relates to the compensation set by the insurance company because it bears uncertainty about the amount and timing of the cash flows that arises from non-financial risk.

Risk profile

A risk profile is a quantitative assessment of the risks to which an insurance company is exposed. In order to adequately identify the risk profile, processes are established, and risk exposure and measurements are defined for every type of risk for the purpose of assessing the extent thereof.

Deferred Acquisition Costs (DAC)

Costs that an insurance company incurs in the acquisition of new insurance contracts are deferred evenly over the entire term of those contracts for accounting purposes. Thus, the one-time cost incurred when insurance is underwritten is deferred evenly over the entire insurance term.

Available own funds

Available own funds are used to cover the solvency capital requirement and represent the surplus of assets over liabilities, plus subordinated liabilities, taking into account other regulatory, insurer-specific adjustments.

Reserves from profit

Comprise other reserves from profit, legal and statutory reserves, contingency reserves and credit risk equalisation reserves.

Solvency II

The European Union's regulatory framework in the field of insurance, which defines the calculation of capital adequacy and the governance of and reporting by insurance companies. An insurance company's available own funds must be at least equal to the assessment of assumed risks, as set as out in the regulatory framework.

Coinsurance

A way to equalise risks, where assumed risks are split or spread among several insurance companies. The proportion of risk assumed by an individual insurance company may vary and represents the basis for determining an individual insurance company's share of the premium and potential loss. Each insurance company is jointly and severally liable to the insured, i.e. for the full amount of benefits and/or claims from an insurance contract, irrespective of the proportion of risk it assumes.

Contractual service margin sustainability

The contractual service margin sustainability shows the ratio of the contractual service margin (CSM) of new contracts to the release of the contractual service margin to profit or loss.

Market capitalisation

The value of a company calculated as the product of the closing share price and the number of shares on the reporting date.

Economic value generated

Comprises total revenue and finance income from financial and insurance contracts.

Comprehensive income

Comprehensive income consists of two elements. The first element comprises net earnings in the accounting period from the statement of profit or loss. The second element comprises other comprehensive income, which discloses income and expense items that are not recognised in the statement of profit or loss, but affect the balance of shareholders' equity. These income and expenses arise mainly from the revaluation of assets to fair value and from the financial effects of the valuation of insurance and reinsurance contracts.

Appendix

other EU legislation 7. GRI, SASB in SDG Content Index

Insurance premium as a proportion of gross domestic product (GDP).

Insurance premium

Insurance premium covers the payment of current and future claims, the costs of prevention activities and the insurance company's operating expenses.

Insurance class

Various insurance types that are grouped in accordance with the Slovenian Insurance Act based on the main types of risks they cover. The Slovenian Insurance Act defines 24 different insurance classes.

Insurance contract

A contract is defined as an insurance contract when, at the time of conclusion, significant insurance risk is accepted from the policyholder.

Economic value retained

The difference between economic value generated and economic value distributed.

Solvency Capital Requirement (SCR)

The amount of an insurance company's capital that it needs to remain solvent for at least one year with a 99.5% probability calculated in accordance with Solvency II. It is calculated according to a statutory standard formula that takes into account all material measurable risks: underwriting, market, credit and operational risks.

Insurance density (premium per capita)

The ratio of gross written premium to the number of inhabitants of a particular country.

Insurance penetration

The amount set out in an insurance contract that the policyholder pays to the insurance company.

Appendix

Appendix 4: Alternative performance measures

ALTERNATIVE PERFORMANCE MEASURE DEFINITION OF CALCULATION EXPLANATION OF USE AND LIMITATIONS
Total business volume Comprises gross written premium and other income. A measure broader than gross written premium, it is useful for comparison between product segments,
regions and, to a limited extent, companies. However, it is not suitable for disclosing profitability, as it
is influenced by fluctuations that are not directly related to the way the business is conducted, such as
price changes, changes in foreign exchange rates, and changes in the business network and products
(e.g. acquisitions, spin-offs, transfers).
Total revenue Comprises insurance revenue, asset management income, other operating income and other income
(under IFRS 17).		 This measure is designed to compare product segments, regions and, to a limited extent, companies.
However, it is not suitable for disclosing profitability, as it is influenced by fluctuations that are not
directly related to the way the business is conducted, such as price changes, changes in foreign
exchange rates, and changes in the business network and products (e.g. acquisitions, spin-offs,
transfers).
Return on equity (ROE) The ratio of net earnings for the period to the average balance of shareholders' equity in the period. It enables annual comparability of profitability data and provides a quick annual assessment.
Rate of return on investment The ratio of return on investment to the average balance of financial investments. Own investment
portfolio includes financial investments, investments in associates, loans granted, bank deposits and		 This measure is suitable for monitoring the success of management and profitability of financial
investment management.
other financial investments, but excludes unit-linked life insurance assets, financial investments from
financial contracts and investment property.		 However, it is influenced by external factors that companies can manage through other processes
(such as currency risk and interest rate risk management) and that are not directly reflected in the
result of this measure, such factors related to existing agreements or commitments in cases of
acquisitions, mergers and similar transactions.
The ratio of the sum of the contractual service margin (CSM) of new contracts and the loss of onerous It measures the profitability of new business in the insurance industry.
New business margin/new business margin of
life insurance/new business margin of the Life segment		 contracts to the present value of new premium. However, the limitation of its use depends on actuarial estimates and assumptions, which are based
on historical or current data and do not account for potential future changes, such as shifts in client
behaviour or the country's development.
Capital adequacy ratio The ratio of available own funds eligible for covering the solvency capital requirement to the solvency
capital requirement.		 It is a legal obligation and the required practice of due diligence.
Combined ratio/CoR Non-Life & Health The sum of the expense ratio and claims ratio. It measures the profitability of contracts in the Non-Life, Health, or both segments, excluding
investment returns. A value of less than 100% indicates profit from a particular segment. However, this
measure does not reveal the absolute values of the calculation and, therefore, does not directly explain
the underlying reasons for the values.
CSM of new contracts/Total CSM The ratio of the sum of the contractual service margin (CSM) of new contracts and the loss of onerous It is useful for monitoring the future effects of new business.
contracts to the present value of new premium. Caution is required when assessing it during the year, as business events do not necessarily follow the
dynamics of the previous year. Similarly, the impact of any one-off or non-recurring events should also
be considered.
Gross written premium The sum of all premiums that the insurance company charges to policyholders following the
underwriting or renewal of policies in the accounting period.		 Gross written premium is primarily useful as a measure of business growth for comparing various
regions and segments.
Gross written premium does not provide information on the profitability of the company/group and
should always be considered alongside IFRS measures of revenue and profitability (e.g. net profit or
loss for the period).
Gross claims paid Benefits and claims calculated for all or a portion of settled claims in the accounting period, including
claim settlement costs.		 This measure shows the actual calculated costs from claims during the reporting period. It is useful
for comparison over time and across various segments, though it is subject to the impact of claims
inflation.
Claims incurred Comprise insurance service expenses for claims, change in future cash flows, change in experience
correction, loss of onerous contracts, allocation to onerous contracts and the remaining insurance		 The purpose of this measure is to show the estimated effect of claims on the company's current and
future operations.
expenses. The estimate incorporates actuarial assumptions, which may differ due to actual future events.
Expense ratio The ratio of the sum of attributable and non-attributable costs, net other insurance expenses less
other insurance income to insurance revenue.		 The expense ratio is a component of the combined ratio and plays a crucial role in explaining the
cost-effectiveness impact.
However, as it does not provide absolute values in its calculation, it does not directly explain the
underlying reasons for its value.

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Appendix

other EU legislation 7. GRI, SASB in SDG Content Index

ALTERNATIVE PERFORMANCE MEASURE DEFINITION OF CALCULATION EXPLANATION OF USE AND LIMITATIONS
Net investment result Comprises the investment result, the financial result from insurance contracts, gains and losses on
investments in associates and the change in the provisions for not achieving the yield on supplemental		 This measure should be assessed in conjunction with the investment result in accordance with IFRS,
while also considering the broader context of financial investment markets.
voluntary pension insurance. However, it is not suitable for predicting future business performance.
Insurance operating result/result from insurance operations Comprises insurance revenue less claims incurred and acquisition and administrative costs, including
non-attributable costs, net reinsurance service result and net other insurance income/expenses.		 This measure is suitable for analysing business performance of insurance operations, as it improves the
comparability of profitability over time.
Additionally, this measure is subject to fluctuations influenced by factors beyond business operations,
such as foreign exchange rates.
Result from non-insurance operations The sum of the categories that are not included in the insurance operating result and the
net investment result.		 This measure is suitable for analysing the performance of non-insurance operations. Additionally, this
measure is subject to fluctuations influenced by factors beyond the performance of analysed business
operations, such as foreign exchange rates.
Assets under management (AUM) Comprise own investment portfolio, assets from the pension insurance savings funds, unit-linked
It shows the scope and effectiveness of asset management; however, it is important to consider its
insurance assets, assets in mutual funds and discretionary mandate assets, and alternative
limitations, including the impact of potential takeovers, disposals or mergers, as well as fluctuations in
investments.
currency rates.
Claims ratio The ratio of the sum of claims, change in future cash flows, change in experience correction, change in
onerous contracts and the reinsurance result to insurance revenue.		 It reflects both the realised and estimated future effects of loss events on insurance revenue and
serves as an appropriate measure for monitoring the impact of realised loss events within a given
period. It is also useful for comparison across segments and regions.
However, this measure does not provide absolute values or reflect the overall performance of the
company's operations. Additionally, it is influenced by external factors, such as inflation.

Appendix

Appendix 5: The list of ESRS disclosure requirements included in the sustainability statement157

The list of material disclosure requirements Page
ESRS 2 – General disclosures
BP-1 – General basis for preparation of the sustainability statement 87
BP-2 – Disclosures in relation to specific circumstances 87−88, 108
GOV-1 – The role of the administrative, management and supervisory bodies 89−90, 131−132
GOV-2 – Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies 89–90, 101
GOV-3 – Integration of sustainability-related performance in incentive schemes 90
GOV-4 – Statement on due diligence 91
GOV-5 – Risk management and internal controls over sustainability reporting 198
SBM-1 – Strategy, business model and value chain 92, 94, 98, 111, 127
SBM-2 – Interests and views of stakeholders 89, 98–100, 101
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 88, 89, 99, 103, 111
IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities 87, 89, 91, 101–105
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking's sustainability statement 105, 336, 337
E1 – Climate change
ESRS 2 E1.GOV-3 – Integration of sustainability-related performance in incentive schemes 90
E1-1 – Transition plan for climate change mitigation 106, 114–121
ESRS 2 E1.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 89, 111
ESRS 2 E1.IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities 111
E1-2 – Policies related to climate change mitigation and adaptation 106
E1-3 – Actions and resources in relation to climate change policies 106–107
E1-4 – Targets related to climate change mitigation and adaptation 106–108
E1-5 – Energy consumption and mix 109
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions 107–108
E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities 111
S1 – Own workforce
ESRS 2 S1.SBM-2 – Interests and views of stakeholders 98−100
ESRS 2 S1.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 103–104, 126
S1-1 – Policies related to own workforce 126, 129, 130, 131
S1-2 – Processes for engaging with own workforce and workers' representatives about impacts 126
S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns 131
S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 126, 129, 130
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 94, 130–132
S1-6 – Characteristics of the undertaking's employees 127–128
S1-7 – Characteristics of non-employees in the undertaking's own workforce 128
S1-9 – Diversity metrics 131–132
S1-10 – Adequate wages 132−133

Appendix

The list of material disclosure requirements Page
S1-12 – Persons with disabilities 132
S1-13 – Training and skills development metrics 129
S1-14 – Health and safety metrics 130–131
S1-15 – Work-life balance metrics 133
S1-16 – Remuneration metrics (pay gap and total remuneration) 133
S1-17 – Incidents, complaints and severe human rights impacts 131
S3 – Affected communities
ESRS 2 S3.SBM-2 – Interests and views of stakeholders 98–100
ESRS 2 S3.SBM-3 – Material impacts, risks and opportunities and their interaction of with strategy and business model 103–104
S3-1 – Policies related to affected communities 137
S3-2 – Processes for engaging with affected communities about impacts 99, 137
S3-4 – Taking action on material impacts on affected communities, and approaches to mitigating material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions 137–138, 139–140
S4 – Consumers and end-users
ESRS 2 S4.SBM-2 – Interests and views of stakeholders 98–100
ESRS 2 S4.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 99–100, 103–104,
112, 133, 135
S4-1 – Policies related to consumers and end-users 134
S4-2 – Processes for engaging with consumers and end-users about impacts 133
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 134, 136
S4-4 – Taking action on material impacts on consumers and end- users, and approaches to mitigating material risks and pursuing material opportunities related to consumers and end-users and effectiveness of those actions 134, 136
S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 134
G1 – Business conduct
ESRS 2 G1.GOV-1 – The role of the administrative, supervisory and management bodies 89–90
G1-1 – Business conduct policies and corporate culture 142–143
G1-2 – Management of relationships with suppliers 144
G1-3 – Prevention and detection of corruption and bribery 143–144
G1-4 – Incidents of corruption or bribery 144
G1-6 – Payment practices 144

Appendix

Appendix 6: The list of datapoints in cross-cutting and topical standards that derive from other EU legislation158

Disclosure ESRS 2 IRO-2, paragraph 56, and ESRS 2, Appendix B

Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU Climate Law
reference		 Material/ not material Page
ESRS 2 GOV-1
Board's gender diversity, paragraph 21 (d)		 Indicator number 13 of Table #1 of
Annex I		 Commission Delegated Regulation
(EU) 2020/1816, Annex II		 131–132
ESRS 2 GOV-1
Percentage of board members who are independent, paragraph 21(e)		 Delegated Regulation (EU) 2020/1816,
Annex II		 Not material 89
ESRS 2 GOV-4
Statement on due diligence, paragraph 30		 Indicator number 10 Table #3 of Annex I 91
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities, paragraph 40(d)i		 Indicators number 4 Table #1 of Annex I Article 449a of Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453,
Table 1: Qualitative information on Environmental risk
and Table 2: Qualitative information on Social risk		 Delegated Regulation (EU) 2020/1816,
Annex II		 Not material 111
ESRS 2 SBM-1
Involvement in activities related to chemical production, paragraph
40(d)ii		 Indicator number 9 Table #2 of Annex I Delegated Regulation (EU) 2020/1816,
Annex II		 Not material 111
ESRS 2 SBM-1
Involvement in activities related to controversial weapons, paragraph
40(d)iii		 Indicator number 14 Table #1 of Annex I Delegated Regulation (EU) 2020/1818,
Article 12(1) Delegated Regulation (EU)
2020/1816, Annex II		 Not material 111
ESRS 2 SBM-1
Involvement in activities related to cultivation and production of
tobacco, paragraph 40(d)iv		 Delegated Regulation (EU) 2020/1818,
Article 12(1) Delegated Regulation (EU)
2020/1816, Annex II		 Not material 111
ESRS E1-1
Transition plan to reach climate neutrality by 2050, paragraph 14		 Regulation (EU)
2021/1119,
Article 2(1)		 106
ESRS E1-1
Undertakings excluded from Paris-aligned Benchmarks, paragraph
16(g)		 Article 449a of Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453,
Template 1: Banking book – Indicators of potential
climate change transition risk: credit quality of
exposures by sector, emissions and residual maturity		 Delegated Regulation (EU) 2020/1818,
Article article 12(1), points (d) to (g),
and Article 12(2)		 Not material /
ESRS E1-4
GHG emission reduction targets, paragraph 34		 Indicator number 4 Table #2 of Annex I Article 449a of Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453,
Template 3: Banking book – Indicators of potential
climate change transition risk: alignment metrics		 Delegated Regulation (EU) 2020/1818,
Article 6		 106
ESRS E1-5
Energy consumption from fossil sources disaggregated by sources
(only high climate impact sectors), paragraph 38		 Indicator number 5 Table #1 and
Indicator n. 5 Table #2 of Annex I		 Not material /
ESRS E1-5
Energy consumption and mix paragraph, 37		 Indicator number 5 Table #1 of Annex I 109

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Accounting report

Appendix

Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU Climate Law
reference		 Material/ not material Page
ESRS E1-5
Energy intensity associated with activities in high climate impact
sectors, paragraphs 40 to 43		 Indicator number 6 Table #1 of Annex I Not material /
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions, paragraph 44		 Indicators number 1 and 2 Table #1 of
Annex I		 Article 449a of Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453,
Template 1: Banking book – Indicators of potential
climate change transition risk: credit quality of
exposures by sector, emissions and residual maturity		 Delegated Regulation (EU) 2020/1818,
Articles 5(1), 6 and 8(1)		 107
ESRS E1-6
Gross GHG emissions intensity, paragraphs 53 to 55		 Indicators number 3 Table #1 of Annex I Article 449a of Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453,
Template 3: Banking book – Indicators of potential
climate change transition risk: alignment metrics		 Delegated Regulation (EU) 2020/1818,
Article 8(1)		 107
ESRS E1-7
GHG removals and carbon credits, paragraph 56		 Regulation (EU)
2021/1119,Article
2(1)		 Not material /
ESRS E1-9
Exposure of the benchmark portfolio to climate-related physical risks,
paragraph 66		 Delegated Regulation (EU) 2020/1818,
Appendix II; Delegated Regulation (EU)
2020/1816, Appendix II		 111
ESRS E1-9
Disaggregation of monetary amounts by acute and chronic physical
risk paragraph 66(a)
ESRS E1-9
Location of significant assets at material physical risk paragraph 66(c)		 Article 449a of Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453,
paragraphs 46 and 47; Template 5: Banking book –
Indicators of potential climate change physical risk:
exposures subject to physical risk		 /
ESRS E1-9
Breakdown of the carrying value of its real estate assets by
energy-efficiency classes paragraph 67(c)		 Article 449a of Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453,
paragraph 34; Template 2: Banking book – Indicators
of potential climate change transition risk: loans
collateralised by immovable property – energy efficiency
of the collateral		 111
ESRS E1-9
Degree of exposure of the portfolio to climate- related opportunities,
paragraph 69		 Delegated Regulation (EU) 2020/1818,
Appendix II		 111
ESRS E2-4
Amount of each pollutant listed in Annex II of the E-PRTR Regulation
(European Pollutant Release and Transfer Register) emitted to air,
water and soil, paragraph 28		 Indicator number 8 Table #1 of Annex
I Indicator number 2 Table #2 of Annex
I Indicator number 1 Table #2 of Annex
I Indicator number 3 Table #2 of Annex I		 Not material /
ESRS E3-1
Water and marine resources, paragraph 9		 Indicator number 7 Table #2 of Annex I Not material /
ESRS E3-1
Dedicated policy, paragraph 13		 Indicator number 8 Table 2 of Annex I Not material /
ESRS E3-1
Sustainable oceans and seas, paragraph 14		 Indicator number 12 Table #2 of Annex I Not material /
ESRS E3-4
Total water recycled and reused, paragraph 28(c)		 Indicator number 6.2 Table #2 of Annex I Not material /
ESRS E3-4
Total water consumption in m3
per net revenue on own operations,
paragraph 29		 Indicator number 6.1 Table #2 of Annex I Not material /

Appendix

Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU Climate Law
reference		 Material/ not material Page
ESRS 2 – IRO-1 – E4, paragraph 16(a), point (i) Indicator number 7 Table #1 of Annex I Not material /
ESRS 2 – IRO-1 – E4, paragraph 16(b) Indicator number 10 Table #2 of Annex I Not material /
ESRS 2 – IRO-1 – E4, paragraph 16(c) Indicator number 14 Table #2 of Annex I Not material /
ESRS E4-2
Sustainable land/agriculture practices or policies, paragraph 24(b)		 Indicator number 11 Table #2 of Annex I Not material /
ESRS E4-2
Sustainable oceans/seas practices or policies, paragraph 24(c)		 Indicator number 12 Table #2 of Annex I Not material /
ESRS E4-2
Policies to address deforestation, paragraph 24(d)		 Indicator number 15 Table #2 of Annex I Not material /
ESRS E5-5
Non-recycled waste, paragraph 37(d)		 Indicator number 13 Table #2 of Annex I Not material /
ESRS E5-5
Hazardous waste and radioactive waste, paragraph 39		 Indicator number 9 Table #1 of Annex I Not material /
ESRS 2 – SBM-3 – S1
Risk of incidents of forced labour, paragraph 14(f)		 Indicator number 13 Table #3 of Annex I Not material /
ESRS 2 – SBM-3 – S1
Risk of incidents of child labour, paragraph 14(g)		 Indicator number 12 Table #3 of Annex I Not material /
ESRS S1-1
Human rights policy commitments, paragraph 20		 Indicator number 9 Table #3 and
Indicator number 11 Table #1 of Annex I		 131
ESRS S1-1
Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8, paragraph 21		 Delegated Regulation (EU) 2020/1816,
Annex II		 131
ESRS S1-1
Processes and measures for preventing trafficking in human beings,
paragraph 22		 Indicator number 11 Table #3 of Annex I Not material /
ESRS S1-1
Workplace accident prevention policy or management system,
paragraph 23		 Indicator number 1 Table #3 of Annex I 131
ESRS S1-3
Grievance/complaints handling mechanisms, paragraph 32(c)		 Indicator number 5 Table #3 of Annex I 131
ESRS S1-14
Number of fatalities and number and rate of work-related accidents,
paragraph 88(b) and (c)		 Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816,
Annex II		 130
ESRS S1-14
Number of days lost to injuries, accidents, fatalities or illness,
paragraph 88(e)		 Indicator number 3 Table #3 of Annex I 131
ESRS S1-16
Unadjusted gender pay gap, paragraph 97(a)		 Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816,
Annex II		 132
ESRS S1-16
Excessive CEO pay ratio paragraph 97(b)		 Indicator number 8 Table #3 of Annex I Not material /
ESRS S1-17
Incidents of discrimination, paragraph 103(a)		 Indicator number 7 Table #3 of Annex I 131
ESRS S1-17
Non-respect of UNGPs on Business and Human Rights and OECD,
paragraph 104(a)		 Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex I		 Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Article 12(1)		 /

Accounting report

Appendix

EU Climate Law
Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference reference Material/ not material Page
ESRS 2 – SBM-3 – S2
Significant risk of child labour or forced labour in the value chain,
paragraph 11(b)		 Indicators number 12 and 13
Table #3 of Annex I		 Not material /
ESRS S2-1
Human rights policy commitments, paragraph 17		 Indicator number 9 Table #3 and
Indicator number 11 Table #1 of Annex I		 Not material /
ESRS S2-1
Policies related to value chain workers, paragraph 18		 Indicators number 11 and 4 Table #3 of
Annex I		 Not material /
ESRS S2-1
Non-respect of UNGPs on Business and Human Rights principles and
OECD guidelines, paragraph 19		 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Article 12(1)		 Not material /
ESRS S2-1
Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8, paragraph 19		 Delegated Regulation (EU) 2020/1816,
Annex II		 Not material /
ESRS S2-4
Human rights issues and incidents connected to its upstream and
downstream value chain, paragraph 36		 Indicator number 14 Table #3 of Annex I Not material /
ESRS S3-1
Human rights policy commitments, paragraph 16		 Indicator number 9 Table #3 of Annex
I and Indicator number 11 Table #1 of
Annex I		 131
ESRS S3-1
Non-respect of UNGPs on Business and Human Rights, ILO principles
or and OECD guidelines, paragraph 17		 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Article 12(1)		 Not material /
ESRS S3-4
Human rights issues and incidents, paragraph 36		 Indicator number 14 Table #3 of Annex I Not material /
ESRS S4-1
Policies related to consumers and end-users, paragraph 16		 Indicator number 9 Table #3 and
Indicator number 11 Table #1 of Annex I		 134
ESRS S4-1
Non-respect of UNGPs on Business and Human Rights principles and
OECD guidelines, paragraph 17		 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Article 12(1)		 /
ESRS S4-4
Human rights issues and incidents, paragraph 35		 Indicator number 14 Table #3 of Annex I /
ESRS G1-1
United Nations Convention against Corruption, paragraph 10(b)		 Indicator number 15 Table #3 of Annex I 142
ESRS G1-1
Protection of whistleblowers, paragraph 10(d)		 Indicator number 6 Table #3 of Annex I 142
ESRS G1-4
Fines for violation of anti-corruption and anti-bribery laws, paragraph
24(a)		 Indicator number 17 Table #3 of Annex I Delegated Regulation (EU) 2020/1816,
Annex II		 143
ESRS G1-4
Standards of anti-corruption and anti-bribery, paragraph 24(b)		 Indicator number 16 Table #3 of Annex I 143

341

Appendix

Appendix 7: GRI, SASB in SDG Content Index159

GRI (Global Reporting Initiative) content index

ECONOMIC IMPACTS
GRI standard Disclosure Section/page Requirement(s) omitted
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed 10.3.3/137
201-2 Financial implications and other risks and opportunities due to climate change 7.2/53 Reporting on financial implications of weather and
natural disasters
GRI 203: Indirect Economic Impacts 2016
203-1 Extent of development of significant infrastructure investments and services supported 10.3.3.1/139
GRI 417: Marketing and Labelling 2016
417-1 Requirements for product and service information and labelling 10.3.2.1/134
417-2 Total number of incidents of non-compliance with regulations and/or voluntary codes concerning product and service
information and labelling		 10.3.2.1/134
417-3 Total number of incidents of non-compliance with regulations and/or voluntary codes concerning marketing communications,
including advertising, promotion, and sponsorships		 10.3.2.1/134
GRI 418: Customer Privacy 2016
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 10.3.2.3/136
GRI G4: Financial Services Sector Disclosures
G4-FS7 Monetary value of products and services designed to deliver a specific social benefit 10.2.1.3/112
G4-FS8 Monetary value of products and services designed to deliver a specific environmental benefit 10.2.1.3/112
G4-FS14 Initiatives to improve access to financial services for disadvantaged people 10.3.2.2/136

Appendix

SASB (Sustainability Accounting Standards Board) content index

Insurance
Topic Metric Code Section/page
Transparent Information & Fair Advice
for Customers		 Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of financial
product-related information to new and returning customers		 FN-IN-270a.1 10.3.2.1/134
Complaints-to-claims ratio FN-IN-270a.2 10.3.2.1/134
Customer retention rate FN-IN-270a.3 10.3.2.1/134
Description of approach to informing customers about products FN-IN-270a.4 10.3.2.1/134
Incorporation of Environmental,
Social and Governance Factors in
Investment Management		 Description of approach to incorporation of environmental, social and governance (ESG) factors in investment management
processes and strategies		 FN-IN-410a.2 10.1.2.1/92
Net premiums written related to energy efficiency and low carbon technology FN-IN-410b.1 10.2.1.3/112
Policies Designed to Incentivise
Responsible Behaviour		 Discussion of products or product features that incentivise health, safety or environmentally responsible actions or
behaviours		 FN-IN-410b.2 10.2.1.3/112
Physical Risk Exposure Probable Maximum Loss (PML) of insured products from weather-related natural catastrophes FN-IN-450a.1 2.8.2.1 Accounting report /201
Total amount of monetary losses attributable to insurance pay-outs from (1) modelled natural catastrophes and (2) non
modelled natural catastrophes, by type of event and geographical segment (net and gross of reinsurance)		 FN-IN-450a.2 7.2/53
Systemic Risk Management Exposure to derivative instruments by category FN-IN-550a.1 2.8.2.1 Accounting report/198
Total fair value of securities lending collateral assets FN-IN-550a.2 2.5.10 Accounting report /189
Description of approach to managing capital- and liquidity-related risks associated with systemic non-insurance activities FN-IN-550a.3 9.2.1/82
Asset management
Topic Metric Code Section/page
Transparent Information & Fair Advice for
Customers		 Number and percentage of licensed employees and identified decision-makers with a record of investment-related
investigations, consumer-initiated complaints, private civil litigations, or other regulatory proceedings		 FN-AC-270a.1 10.4.1/142
Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of financial
product-related information to new and returning customers		 FN-AC-270a.2 10.3.2.1/134
Description of approach to informing customers about products and services FN-AC-270a.3 10.3.2.1/134
Employee Diversity & Inclusion Percentage of gender and diversity group representation for (1) executive management, (2) non-executive management, (3)
professionals, and (4) all other employees		 FN-AC-330a.1 10.1.2/89−90, 10.3.1.4/131
Incorporation of Environmental, Social,
and Governance Factors in Investment
Management & Advisory		 Amount of assets under management, by asset class, that employ (1) integration of environmental, social, and governance
(ESG) issues, (2) sustainability themed investing and (3) screening		 FN-AC-410a.1 10.2.1.3/113
Description of approach to incorporation of environmental, social and governance (ESG) factors in investment or wealth
management processes and strategies		 FN-AC-410a.2 10.1.2.1/92
Description of proxy voting and investee engagement policies and procedures FN-AC-410a.3 8.4/76
Business Ethics Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, antitrust,
anticompetitive behaviour, market manipulation, malpractice, or other related financial industry laws or regulations		 FN-AC-510a.1 10.4.1/143
Description of whistleblower policies and procedures FN-AC-510a.2 10.4.1/143

Appendix

UN SDGs (United Nations Sustainable Development Goals) content index)

Goal Goal description Section/page
2 By 2030 double the agricultural productivity and the incomes of small-scale food producers, particularly women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land,
other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment		 10.2.1.3/112
3 By 2020 halve the number of global deaths and injuries from road traffic accidents 10.3.3/138–139
5 Achieve gender equality and empower all women and girls 10.3.1.4/131
7 Ensure access to affordable, reliable, sustainable and modern energy 10.2.1.3/112
8 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises,
including through access to financial services		 10.3.2.2/135
Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment 10.3.1.3/130
9 Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets 10.2.1.3/112
11 Make cities inclusive, safe, resilient and sustainable 10.3.2.2/135
13 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries 10.2.1.3/112
Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning 10.2.1.3/112
15 By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in order to enhance their capacity to provide benefits that are essential for sustainable development 10.3.3.1/138
16 Substantially reduce corruption and bribery in all their forms 10.4.1/142

Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2024 Published by: Zavarovalnica Triglav d.d. Text by: Zavarovalnica Triglav d.d. Editing, consulting, production by: Studio Kernel d.o.o. Photographs by: Ciril Jazbec, Andraž Blaznik, Triglav Group archive, Shutterstock, iStock, GettyImages

Ljubljana, March 2025

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