Annual Report (ESEF) • Apr 1, 2022
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“Corporate social responsibility investments are not just a niche market, but reflect a changing social environment, changes to consumer habits, lifestyle and even legislation. We are also aware of the importance of corporate social responsibility investing at Triglav Group, so we created the Triglav Zeleni fund and committed ourselves to invest only in companies that have positive and measurable sustainability characteristics. In managing other funds and investor portfolios, reviewing the sustainability characteristics of financial instruments has also become an integral part of our investment process.”
Sašo Ivanović
Director of Investment Fund Management
at Triglav Skladi
| Total revenue in EUR million | 743.2 | 765.2 | 848.6 | 1,260.9 | 1,318.4 | 1,455.1 |
|---|---|---|---|---|---|---|
Credit rating ‘A’ with a stable medium-term outlook
EUR 1,539.3 million
22.2 %
The proportion of operating expenses of the insurance business in gross written premium
+33%
The organizers of the Triglav Run provided free training courses for runners in nine Slovenian towns.
| Segment | Gross written premium from insurance, coinsurance and reinsurance contracts |
|---|---|
| Health | 65.5% |
| Life and pension | 19.6% |
| Non-life | 14.9% |
| Triglav Group | 65.4% |
| 1,184.2 | EUR million |
|---|---|
| 1,233.8 | EUR million |
| 1,353.0 | EUR million |
| +10% | 1,184.2 |
| 702.1 | 1,233.8 |
| 719.3 | 1,200 – 1,300 |
| 1,353.0 | 794.4 |
100 insurance products in Slovenia
32 insurance products in Slovenia
17 insurance products combined and simplified into one.
>70 simplified products and services
+50.3% users of the i.triglav web office
| Reliability | EUR 4.4 billion | |
|---|---|---|
| Balance sheet total of the Triglav Group | 219 % | |
| Capital adequacy of the Triglav Group | 12.5 % | |
| Return on equity of the Triglav Group | Combined ratio of the Triglav Group | |
| 63.2% | 28.3% | |
| Net profit before tax in EUR million | Triglav Group | Zavarovalnica Triglav |
| 100.9 | 84.6 | 90.9 |
| 71.1 | 85–95* | 132.6 |
| 85.7 |
In the Carefree and safe living business ecosystem, we work with partners who provide reliable assistance services for our clients (Marijan Radoš, Teslamont).
| Claims ratio | Expense ratio |
|---|---|
| 63.1% | 28.1% |
| 91.2% | 61.4% |
| 27.5% | 88.9% |
| below 95% |
2021 Plan
2021 Plan
+6%
+3.7 p.p.
The Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2021 is integrated and describes the balance and plans as at 31 December 2021. When compiling the report, the aim was to present a comprehensive overview of the main financial and non-financial (ESG) aspects, results and plans. You can read more about the report in Section 2.4 About the report.
You can access the contents of the report through interactive indexes and quick links to related or additional content, for example: Section 4 Triglav Group strategy and plans.
Detailed information for investors and existing shareholders is available at:
Information for shareholders:
Zavarovalnica Triglav d.d., Ljubljana,
Miklošičeva cesta 19, 1000 Ljubljana,
Helena Ulaga Kitek
Head of Investor Relations
T: ++386 (1) 47 47 331
The consolidated profit before tax, amounting to EUR 132.6 million, was 46% higher than in the previous year.
Dear Shareholders, Business Partners and Colleagues,
Even under such circumstances, we achieved very good results – better than expected. The Group consolidated its position in most markets, maintained its financial strength and again received “A” credit ratings from S&P Global Ratings and AM Best with a stable medium-term outlook.
The consolidated profit before tax, amounting to EUR 132.6 million, was 46% higher than in the previous year. Net return on equity was 12.5%. With prudent cost management, primarily acquisition costs, digitalisation expenses and investments in information technology increased. We achieved very good results in both underwriting activities and the management of clients’ assets, while investment portfolio returns continued to be affected by the low interest rate environment.
Several factors contributed to underwriting results. Along with growth in the volume of business, they were positively affected by the relatively lower frequency of claims and the favourable development of claims provisions created in past years. They were further affected by the formation of insurance technical provisions in 2021, which was prudently conservative as always. To a lesser extent, additional insurance technical provisions were created in the health, life and pension insurance segments.
The Group’s underwriting discipline and client focus resulted in premium growth in all three insurance segments and in all our markets. We aim to play a leading role in our region in integrating the best global ESG practices into our operations.
| Target capital adequacy | 300% |
|---|---|
| 250% | |
| 200% | |
| 150% |
the international market based on the principle of free movement of services and inward reinsurance premium grew by 40%. The non-life insurance premium increased by 12%, life and pension insurance premium by 8% and health insurance premium by 1%.
The volume of gross claims paid of EUR 736.6 million did not deviate significantly from the previous two years. They were affected by the growth of the insurance portfolio over several years and major CAT events, which were even lower than the year before. As we observed during the year, the claims segment continued to be affected by the COVID-19 pandemic, resulting in a lower frequency of claims in some insurance classes and an increased volume of claims in others due to last year’s disruption in some services. The combined ratio in non-life and health insurance reached a very favourable 88.9%. Its improvement is the result of the improved claims ratio and the expense ratio or higher growth in net premium income than growth in net claims incurred, backed by the rise in other insurance income and the decline in net expenses for bonuses and discounts.
The Group’s investment portfolio – together with investment property and investments in associates – amounted to EUR 3,668.5 million, which is 5% more than the year before. Its structure was not significantly changed, but we continued to pursue the goal of achieving a high credit rating of the entire portfolio in our investing activities. We also began to incorporate environmental, social and governance (ESG) factors in our investment processes. We are satisfied with the results in asset management, in which the volume of clients’ assets in mutual funds and discretionary mandate assets increased by 33% to EUR 1,529.3 million due to the situation on the financial markets and net inflows. By holding a 31.8% market share, the Group is one of the leading managers of assets in mutual funds in Slovenia.
We strive to make the ZVTG share a profitable, safe and stable investment for investors. Our dividend policy is sustainable in terms of the Group’s financial stability, growth and development, and interesting in terms of paying attractive dividends to shareholders. We aim to implement it as such, but in 2021 it was again influenced by the COVID-19 pandemic and related requirements of the insurance regulator. We are pleased to have met its requirements and to have been able to pay dividends in 2021. A total of 53% of Zavarovalnica Triglav’s consolidated net profit for 2020 was allocated for dividend payments, which represented a 5% dividend yield.
The Group’s operations continued to be development-oriented in 2021. In both activities, insurance and asset management, we have strengthened client focus and user experience, with the aim of making it outstanding and uniform across all channels and processes, products and Group companies. This remains our main strategic guideline in the future.
has begun with a revised strategy to 2025, which has set ambitious strategic objectives on a solid foundation.
Andrej Slapar
President of the Management Board of Zavarovalnica Triglav
Channels were connected with new channels (digital sales, strengthened bank channels, mobile operators), in addition to implementing a hybrid sales method (remote selling and personal contact). Due to the unstable situation caused by the COVID-19 pandemic, the sales network as the Group’s main sales channel focused on remote selling.
The client relationship management information system was upgraded in terms of function and data, while the functionalities of the i.triglav digital office and online applications intended for clients in both core activities were expanded. Our contact with clients was maintained through a variety of communication channels (including live/web chat and a chat operated by a digital assistant, i.e. a chatbot), which will be upgraded with the project of establishing a central entry communication point.
In accordance with the planned geographical diversification of operations, we entered into new strategic partnerships, launching operations in Poland and Denmark and expanding our current presence in Greece, Italy, Norway and the Netherlands. These forms of business, which are insignificant in terms of premium volume, are considered material in terms of development.
Sustainability is integrated into our operations and expressed in our mission of building a safer future. By pursuing sustainable development, 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. We aim to play a leading role in our region in integrating the best global ESG practices into our operations. We have defined our sustainable (ESG) ambitions by 2025 in four key areas, which include improvements in communication about our sustainable business practices. Therefore, in this annual report, at the request of investors and shareholders, disclosures according to Sustainability Accounting Standards Board (SASB) were added to the long-term application of the Global Reporting Initiative (GRI) criteria and standard.
The new financial year has begun with a revised strategy to 2025, which has set ambitious strategic objectives on a solid foundation. These objectives were upgraded in terms of development and highlight our continued efforts to focus on the client. We will continue with the digital transformation and, together with our partners, we will develop service-oriented business models and ecosystems.
The Group's operations are planned to remain profitable and safe. The Group, with its sustainability-oriented operations, continues to provide a development-oriented and friendly environment to its employees.
It means a great deal to us that clients are satisfied with our work by rating the Group the highest to date. A high level of satisfaction was also expressed by our employees, which is the foundation of our success. On behalf of the Management Board, I sincerely thank all employees for their efforts.
achieved high prot growth.
The calculation of indicators and the chosen terms are explained in the glossary enclosed to the Annual Report. See page 325.
| in EUR million | 2021 | 2020 | 2019 | Index 2021/2020 | Index 2020/2019 | |
|---|---|---|---|---|---|---|
| Total revenue | 1,455.1 | 1,318.4 | 1,260.9 | 110 | 105 | |
| Gross written premium from insurance, coinsurance and reinsurance contracts | 1,353.0 | 1,233.8 | 1,184.2 | 110 | 104 | |
| Net premium income | 1,119.8 | 1,066.8 | 1,027.6 | 105 | 104 | |
| Gross claims paid | 736.6 | 697.4 | 716.7 | 106 | 97 | |
| Net claims incurred | 715.0 | 683.6 | 684.1 | 105 | 100 | |
| Gross operating expenses | 333.4 | 306.7 | 305.3 | 109 | 100 | |
| Profit before tax | 132.6 | 90.9 | 100.9 | 146 | 90 | |
| Net profit | 113.0 | 73.7 | 83.9 | 153 | 88 | |
| Net profit attributable to the controlling company | 112.8 | 73.5 | 83.7 | 153 | 88 | |
| Combined ratio | 88.9% | 91.2% | 91.5% | 98 | 100 | |
| Insurance technical provisions as at 31 December | 3,198.7 | 3,033.2 | 2,878.9 | 105 | 105 | |
| Equity as at 31 December | 933.0 | 870.2 | 792.0 | 107 | 110 | |
| Equity attributable to the controlling company as at 31 December | 930.5 | 867.6 | 789.5 | 107 | 110 | |
| Return on equity | 12.5% | 8.9% | 10.9% | 141 | 81 | |
| Return on equity attributable to the controlling company | 12.5% | 8.9% | 10.9% | 141 | 81 | |
| Book value per share (in EUR) | 40.93 | 38.16 | 34.73 | 107 | 110 | |
| Net earnings per share (in EUR) | 4.97 | 3.24 | 3.69 | 153 | 88 | |
| Number of employees as at 31 December | 5,264 | 5,316 | 5,281 | 99 | 101 |
| in EUR million | 2021 | 2020 | 2019 | Index 2021/2020 | Index 2020/2019 | |
|---|---|---|---|---|---|---|
| Total revenue | 848.6 | 765.2 | 743.2 | 111 | 103 | |
| Gross written premium from insurance, coinsurance and reinsurance contracts | 794.4 | 719.3 | 702.1 | 110 | 102 | |
| Net premium income | 598.8 | 583.9 | 573.6 | 103 | 102 | |
| Gross claims paid | 408.9 | 408.3 | 425.2 | 100 | 96 | |
| Net claims incurred | 365.1 | 375.3 | 376.8 | 97 | 100 | |
| Gross operating expenses | 195.0 | 180.0 | 180.5 | 108 | 100 | |
| Profit before tax | 85.7 | 71.1 | 84.6 | 121 | 84 | |
| Net profit | 73.4 | 58.0 | 70.6 | 127 | 82 | |
| Combined ratio | 81.8% | 86.1% | 85.6% | 95 | 101 | |
| Insurance technical provisions as at 31 December | 2,280.5 | 2,199.0 | 2,149.0 | 104 | 102 | |
| Equity as at 31 December | 675.2 | 644.0 | 580.5 | 105 | 111 | |
| Return on equity | 11.1% | 9.5% | 12.4% | 117 | 77 | |
| Book value per share (in EUR) | 29.70 | 28.33 | 25.53 | 105 | 111 | |
| Net earnings per share (in EUR) | 3.23 | 2.55 | 3.11 | 127 | 82 | |
| Number of employees as at 31 December | 2,246 | 2,244 | 2,253 | 100 | 100 |
For additional information about this report please contact:
Zavarovalnica Triglav, d.d., Ljubljana, Miklošičeva cesta 19, 1000 Ljubljana
Tomaž Žust, Director of Strategic Planning and Controlling Department | Telephone: +386 (1) 47 47 449 | Fax: +386 (1) 23 16 456 | E-mail: [email protected]
GRI GS 102-53, 102-1, 102-3
| 2021 | 2020 | 2019 | Index 2021/2020 | Index 2020/2019 | ||||
|---|---|---|---|---|---|---|---|---|
| 1. Environmental aspects | Scope 1–2 carbon footprint (tonnes of CO2 equivalent)* | 10,997 | 10,258 | 11,127 | 107 | 92 | ||
| Scope 1 and 2 carbon footprint per employee (tonnes of CO2 equivalent)* | 2.09 | 1.93 | 2.11 | 108 | 91 | |||
| Electricity consumption (MWh) | 14,087 | 12,841 | 13,382 | 110 | 96 | |||
| Share of electricity consumption from renewable sources (%) | 60.1 | 2.7 | 0.9 | 2,234 | 306 | |||
| Total amount of waste per employee (tonnes) | 0.12 | 0.12 | 0.11 | 99 | 114 | |||
| Average daily consumption of office paper per employee** | 14 | 45 | 53 | 31 | 85 | |||
| Number of insurance products promoting environmental responsibility | 5 | 4 | 2 | 125 | 200 |
| 204.5 | 104.3 | n.p. | 196 |
|---|---|---|---|
| Employee satisfaction (ORVI) | 4.00 | 3.99 | 3.88 | 100 | 103 |
|---|---|---|---|---|---|
| Average employee age | 44.67 | 44.38 | 44.06 | 101 | 101 |
| Women employees to total employees ratio (%) | 53.9 | 53.50 | 53.49 | 101 | 100 |
| Proportion of women at first and second management levels under the management board (%) | 42.0 | 42.1 | 43.5 | 100 | 97 |
| Employee turnover (number of leavers/average number of employees; %) | 13.2 | 11.7 | 14.4 | 113 | 81 |
| Average number of training hours per employee | 31 | 24 | 31 | 130 | 77 |
| Lost time incident rate – LTIR (number of work-related incidents/total number of hours of all employees x 200,000) | 0.24 | 0.21 | 0.38 | 117 | 54 |
| Clients satisfaction at Zavarovalnica Triglav (NPS)* | 72 | 68 | 60 | 106 | 113 |
| Number of insurance products and services sold online | 21 | 20 | 18 | 105 | 111 |
| Number of insurance products promoting prevention | 61 | 62 | 62 | 98 | 100 |
| Proportion of employees allowed to work from home (%) | 58.3 | n.p. | n.p. | ||
| Number of suppliers checked against ESG criteria | 375 | 311 | 140 | 121 | 222 |
| Investments in the community (prevention, donations, sponsorships) (EUR million) | 8.7 | 7.8 | 7.4 | 111 | 105 |
| Proportion of women in the management board/supervisory board/at the first management level under the management board (%) | 33.3/0/45.3 | 33.3/0/45.8 | 33.3/11.1/46.9 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Average age of Zavarovalnica Triglav Management Board members | 48.7 | 47.7 | 46.7 | 102 | 102 | ||||
| Independence of Zavarovalnica Triglav Supervisory Board members, shareholder representatives (% of members) | 100 | 100 | 100 | 100 | 100 | ||||
| President of the Management Board salary to the average employee salary ratio (factor x)* | 5 | 5 | 5 | 100 | 100 | ||||
| Term of office of the current President of the Management Board (years) | 8 | 7 | 6 | 114 | 117 | ||||
| Policies adopted: equal opportunities policy, anti-corruption policy, employee protection/whistleblower protection policy | YES | YES | YES | ||||||
| Fair business practices (number of fraud cases investigated) | 1,517 | 1,134 | 1,040 | 134 | 109 | ||||
| Internationally renowned audit firm (Big 4) | YES | YES | YES | ||||||
| Period of cooperation with the existing auditor (years) | 3 | 2 | 1.0 | 150 | 200 | ||||
| Investor relations when publishing results | YES | YES | YES | ||||||
| Economic value generated (EUR million) | 1,378.8 | 1,274.9 | 1,292.4 | 108 | 99 | ||||
| Economic value distributed (EUR million) | 1,281.8 | 1,179.2 | 1,245.6 | 109 | 95 | ||||
| Economic value retained (EUR million) | 96.9 | 95.7 | 46.8 | 101 | 204 |
** Includes A4 paper consumption for internal purposes.
*** NPS shows the share of promoters who would recommend the Company to their acquaintances, friends and others based on experience.
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| High | Very high | High | Very high | Importance for the Triglav Group | Importance for shareholders | 1 | 2 | 3 | 4 | 6 | 5 | 7 | 8 | 9 | 10 | 13 | 14 | 12 | 11 | 17 | 16 | 15 |
The Annual Report of the Triglav Group and Zavarovalnica Triglav was compiled in accordance with International Financial Reporting Standards (IFRS), the Companies Act (ZGD-1 J) and the Insurance Act (ZZavar -1).
In line with the strategic ambitions relating to sustainable development, the Group is making constant progress in reporting by expanding the scope of identified indicators of various global standards. For non-financial reporting, GRI standards (Global Reporting Initiative) and their specific guidelines for the financial sector as well as SASB standards (Sustainability Accounting Standards Board) were used. The range of topics and disclosures used is presented in the GRI and SASB content index at the end of the Annual Report and the materiality matrix. Progress in environmental, social and governance (ESG) areas is presented mainly in the section on sustainable development at the Triglav Group, but because the report is integrated, it is also incorporated in various other sections, as evident from the GRI and SASB references.
An overview of the areas where the Group contributes to the achievement of the Sustainable Development Goals adopted by the United Nations is included in Section 12.1 Implementation of strategic guidelines and sustainable development goals of the Triglav Group and Zavarovalnica Triglav.
The content of the annual report and the data on the Group’s sustainable operations are collected by the competent departments of the Company, which is responsible for reporting, in cooperation with the competent departments in subsidiaries. Reporting refers to a particular financial and calendar year.
the Group. With the gradual integration of ESG aspects into the Group’s operations, the scope of companies included in ESG disclosures in accordance with GRI and SASB is also increasing. The notes to individual disclosures indicate which companies are included. The calculation methodology for individual indicators is given in the text and the notes.
Key stakeholders are always involved in determining the content and scope of non-financial disclosures. The procedure of analysing stakeholders and the materiality of content for them was repeated in 2021. The result of the analysis and the scope of key ESG topics can be seen from the updated double materiality matrix. It was verified by a quantitative and a qualitative survey. The rst included more than 1,000 policyholders of Zavarovalnica Triglav and other insurance companies and almost 1,400 employees of the Triglav Group. The qualitative survey with in-depth interviews was conducted with representatives of three stakeholder groups: non-governmental organisations, local communities and Zavarovalnica Triglav's corporate clients and by capturing institutional investors’ data.
More about stakeholders and their engagement is reported in Section 12. Sustainable development at the Triglav Group.
GRI GS 102-46 |
GRI GS 102-48, 102-49, 102-50, 102-52 |
GRI GS 102-44
The Supervisory Board reappointed Marica Makoter as the Management Board member, Worker Director, at the proposal of the Works Council. The General Meeting of Shareholders reappointed Andrej Andoljšek a Supervisory Board Member, shareholder representative, and appointed Tomaž Benčina, Branko Bračko, Jure Valjavec and Peter Kavčič new Supervisory Board members, shareholder representatives.
The Supervisory Board appointed Andrej Andoljšek as its Chairman. See Section 5.3.3 Supervisory Board for more information.
related to uncertainties in the markets due to the pandemic. At the General Meeting of Shareholders held in May, the shareholders passed the resolution proposed by the Management Board and the Supervisory Board to allocate 53% of the Company’s consolidated net profit for 2020 for dividend payment, representing a 5% dividend yield. See Section 6.4 Dividends and dividend policy for more information.
Already in the third quarter of 2021, the Triglav Group raised the estimate of the originally planned annual profit. Premium growth was achieved in all insurance markets and all insurance segments. The value of assets under management increased.
In its revised strategy for 2025, the Triglav Group maintained its key guidelines and upgraded them in terms of development activities, highlighting the Group’s ambitions in sustainable development. See Section 4 Strategy and plans of the Triglav Group for more details.
The “A” credit rating affirmed. The credit rating agencies S&P Global Ratings and AM Best again confirmed the Group’s “A” credit rating with a stable medium-term outlook. See Section 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav for more information.
The epidemic situation caused by COVID-19, which occurred in waves of various strength, continued to affect the Group’s operations in 2021. Compared to the preceding year, the region’s economies recovered as growth in economic activity, also stimulated by government policy measures, was seen in all countries where the Group operates. High economic growth slowed down towards the end of the year due to disruptions in supply chains and production, as well as persistently rising inflation. The epidemic situation also affected the volatility of financial markets (see Section 7.1 The general economic environment worldwide and in Slovenia and Section 7.2 Environmental impact on the Triglav Group’s operations for more information).
Changing circumstances and ensured business continuity by taking further measures to prevent infections and protect the health of employees, clients and other stakeholders and by adjusting the organisation of work (see Section 12.4).
The wide accessibility and availability of the Group’s services to its clients was ensured through various ways of doing business, while keeping in contact with clients via different communication channels. Innovations that further strengthened digital sales communication and distribution channels and tools were implemented at a rapid pace (see Section 11.1 Client-centric approach for more details).
Favourable economic growth stimulated the growth of insurance premiums, but the reduced demand for some insurance products and services was caused by restrictive measures and related lower population mobility and disruptions in supply chains and production. Greater price sensitivity of clients was also identified (see Section 7.5 Gross written insurance, coinsurance and reinsurance premiums for more information).
The pandemic also affected the claims segment. In some insurance classes, a lower claims ratio was still observed, while for other insurance classes the claims increased slightly, mainly as a result of payments due to increased mortality in life insurance and the unavailability of healthcare services in supplemental health insurance in the preceding year. Nevertheless, the COVID-19 pandemic had a positive impact on the Group’s profit due to the lower frequency of claims (see Section 7.6 Gross claims paid for further information).
To cover not yet incurred or future loss events arising from the shortfall in supplemental health insurance claims in 2020 and 2021 due to the impact of the pandemic, other insurance technical provisions were created (see Section 7.8 Risk equalisation for more information).
Due to the changed business conditions, the Company tested the adequacy of accounting policies, estimates and assumptions used in 2021 and assessed the impact of changes on its financial position, cash flows and profit or loss (see Section 2.7.2 The impact of the COVID-19 epidemic on individual items in the financial statements in the Accounting Report for more information).
Risks and their impact on operations were regularly tested with scenario tests. Market and credit risks were assessed as the most material risks. In the context of market risks, higher inflation and future measures taken by central banks to curb excessive inflation will pose a great challenge in the future. With respect to credit risks, special attention will continue to be paid to the payment discipline of receivables and the credit quality of major partners (see Section 2.9 Future risks as a result of the pandemic in Risk Management for more information).
The financial calendar as well as any amendments to the dates of publication will be published on the Ljubljana Stock Exchange website via the SEOnet system (www.seonet.ljse.si) and on the Company’s website (www.triglav.eu).
** 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.
| Date of Announcement* | Type of Announcement | Quiet Period** |
|---|---|---|
| Wednesday, 2 March 2022 | Preliminary key figures for 2021 | From Wednesday, 9 February 2022 |
| Thursday, 31 March 2022 | Audited annual report for 2021 | From Thursday, 17 March 2022 |
| Thursday, 21 April 2022 |
Thursday, 19 May 2022
From Thursday, 5 May 2022
Thursday, 18 August 2022
From Thursday, 4 August 2022
Thursday, 17 November 2022
From Thursday, 3 November 2022
13.2% market share*
+18% written premium**
102.1% combined ratio
The Triglav Group is the leading insurance/financial group in Slovenia and the Adria region as well as one of the leading groups in South-East Europe. The Group operates in seven markets in six countries. Furthermore, it operates in the wider international environment through partnerships with foreign insurance brokerage and agency companies as well as reinsurers.
| Country | Place | Market Share* | Written Premium** | Combined Ratio |
|---|---|---|---|---|
| Slovenia | 1st | 38.6% | +4% | 86.4% |
| Croatia | 7th | 5.6% | +19% | 98.8% |
| Serbia | 5th | 7.3% | +14% | 99.7% |
| Montenegro | 1st | 39.0% | +6% | 93.7% |
| Bosnia and Herzegovina | 4th | 8.6% | +12% | 101.7% |
| North Macedonia | 1st | Asset management | ||
| • Own insurance portfolio (asset backing liabilities and backing funds) | ||||
| • Mutual funds and individual asset management | ||||
| • Pension funds |
↑
GRI GS 102-2, 102-4, 102-6 * The data show the market share of the Triglav Group by an individual market. Data shown for Serbia is for January–September 2021.
** The data show the growth of the Triglav Group’s gross written premium by an individual market.
The Triglav Group will remain leader in all its core businesses in Adria region.
Building a safer future
We set standard of outstanding client experience - anytime, anyplace
are reflected in our day-to-day operations
| Non-life | Life | Pension | Health | Reinsurance |
|---|---|---|---|---|
| Asset management | Own insurance portfolio | Pension funds | Mutual funds and individual asset management |
By pursuing sustainability goals, the Triglav 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.
We play a leading role in integrating the best global ESG practices into its operations in the Adria region.
Source: Zavarovalnica Triglav’s calculation based on the data of national insurance supervision agencies and insurance associations.
| 2019 | 2020 |
|---|---|
Source: SeeNews 2021.
| Triglav Group | 647.6 |
|---|---|
| Generali | 175.3 |
| Sava Insurance Group | 178.0 |
| Agram | 188.3 |
| Croatia Group | 196.4 |
| VIG | 218.3 |
| Vzajemna | 237.2 |
| Dunav | 253.2 |
| Grawe | 268.4 |
| Uniqa | 284.2 |
| Allianz | 342.8 |
| Modra Zavarovalnica | 363.8 |
| Zavarovalnica Triglav d.d. | 426.1 |
| City Insurance SA | 447.0 |
| Zavarovalnica Sava d.d. | 474.0 |
| Generali zavarovalnica d.d. | |
| Croatia Osiguranje d.d. | |
| Vzajemna Zdravstvena zavarovalnica | |
| Omniasig VIG SA | |
| Euroins Romania Asigurare | |
| Dunav Osiguranje AD | |
| Allianz - Tiriac Asigurari SA | |
| Groupama Asigurari SA | |
| Triglav, zdravstvena zavarovalnica | |
| Generali Osiguranje Srbija AD | |
| Euroherc Osiguranje d.d. | |
| NN Asigurari de Viata SA |
Insurance is the Triglav Group’s most extensive strategic activity, which includes non-life, health, life and pension insurance as well as reinsurance.
The Group’s insurance business comprises:
In 2020, the Triglav Group again consolidated its dominant market position in the Adria region (Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia) by increasing its market share by 0.6 percentage point to 21.1%.
In 2020, Zavarovalnica Triglav remained the leading insurer in South-East Europe (Albania, Bosnia and Herzegovina, Bulgaria, Montenegro, Croatia, Kosovo, Moldova, Romania, North Macedonia, Serbia and Slovenia). According to a SeeNews survey, 7 insurance companies of the Triglav Group and 14 Slovenian insurers (three Slovenian insurers are among the largest five) ranked among the top 100 insurers in South-East Europe in terms of gross written premium. With high premium growth, the Romanian insurer City Insurance ranked second, followed by Zavarovalnica Sava (second place the year before). Among the top 100 insurers, Zavarovalnica Triglav again saw the highest profits, with Zavarovalnica Sava coming in second in this category. Total profit of all one hundred insurance companies declined by 4%. Due to the COVID-19 pandemic and low interest rates, 40% of insurance companies achieved a lower profit compared to the preceding year. Insurance companies collected a total of EUR 8.1 billion in written premium, which is the same as the preceding year, and almost half of them recorded a drop in written premium.
20.4%
21.1%
| 13.2% | 9.0% | 9.1% | 7.1% | 7.7% | 8.0% | 7.7% | 6.1% | 6.2% | 6.0% | 6.2% | 4.6% | 4.7% | 3.7% | 3.7% | 3.6% | 3.3% | 3.6% | 3.0% | 2.2% | 2.3% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Asset management at the Triglav Group, which is performed by Zavarovalnica Triglav, the Group’s life insurance and pension insurance companies, Triglav Skladi d.o.o., Triglav, Upravljanje nepremičnin d.o.o. and Trigal d.o.o., includes saving via the Group’s insurance services and investing in the Group’s mutual, pension and private equity funds.
The Triglav Group consisted of 45 companies as at 31 December 2021. In addition to the parent company, it included 28 subsidiaries and 16 associates.
| Slovenia | Zavarovalnica Triglav d.d. | Pozavarovalnica Triglav Re d.d. | Triglav, Zdravstvena zavarovalnica d.d. | Triglav, pokojninska družba d.d. | Triglav Skladi d.o.o. | Triglav, Upravljanje nepremičnin d.o.o. | Trigald d.o.o. | Triglav INT d.o.o. | Triglav Svetovanje d.o.o. | Triglav Avtoservis d.o.o. | Triglavko d.o.o. | Diagnostični center Bled d.o.o. | Alifenet, d.o.o. |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Croatia | Triglav Osiguranje d.d., Zagreb | Triglav Savjetovanje d.o.o. | |||||||||||
| Serbia | Triglav Osiguranje a.d.o., Belgrade | Triglav Savjetovanje d.o.o. | |||||||||||
| Montenegro | Lovćen Osiguranje a.d., Podgorica | Lovćen životna osiguranja a.d., Podgorica | Lovćen auto d.o.o. | ||||||||||
| Bosnia and Herzegovina | Triglav Osiguranje d.d., Sarajevo | Triglav Osiguranje a.d., Banja Luka | PROF-IN d.o.o. | Društvo za upravljanje Evropskim dobrovoljnim penzijskim fondom a.d, Banja Luka | Triglav Savjetovanje d.o.o. | Autocentar BH d.o.o. | |||||||
| North Macedonia | Triglav Osiguruvanje a.d., Skopje | Triglav Osiguruvanje Život a.d., Skopje | Triglav penzisko društvo a.d., Skopje |
Through in cash contribution of EUR 3.3 million in the first quarter of 2021, Zavarovalnica Triglav increased the capital of ZTSR d.o.o. jointly controlled with Sava Re d.d., thereby maintaining its 50% participating interest in said company. In the third quarter of 2021, ZTSR d.o.o. was merged with its subsidiary Diagnostični center Bled d.o.o. and stricken off the Companies Register, while Zavarovalnica Triglav acquired a 50% participating interest in Diagnostični center Bled. Through the in-cash contribution of EUR 1.25 million in the last quarter of 2021, Zavarovalnica Triglav increased the capital of Diagnostični center Bled d.o.o., thereby maintaining its 50% participating interest in said company.
Diagnostični center Bled d.o.o. increased its strategic investment portfolio by acquiring a 100% participating interest in Kirurški sanatorij Rožna dolina d.o.o.
Triglav Svetovanje d.o.o. and Triglav Osiguranje a.d.o, Belgrade increased the capital of their subsidiary Triglav Savetovanje d.o.o., Belgrade proportional to their participating interests. The capital increase was raised by in cash contributions of RSD 7.9 million or EUR 67 thousand, through which the two companies retained their participating interests in said company of 51% and 49% respectively.
Triglav Svetovanje d.o.o. and Triglav Osiguranje d.d., Zagreb increased the capital of their subsidiary Triglav Savjetovanje d.o.o., Zagreb proportional to their participating interests. The capital increase was raised by in-cash contributions of HRK 1.1 million or EUR 145 thousand. As a result, the two companies retained their participating interests in said company of 51% and 49% respectively.
Lovćen Osiguranje a.d., Podgorica increased the capital of its subsidiary Lovćen auto d.o.o., Podgorica through in cash contributions totalling EUR 700 thousand, thereby remaining its 100% owner.
Zavarovalnica Triglav made subsequent capital contributions of EUR 194 thousand to its subsidiary Triglav Avtoservis d.o.o., thereby remaining a 100% owner of said company.
Triglav Svetovanje d.o.o., Domžale sold a 51% participating interest in Triglav Savjetovanje d.o.o., Sarajevo to Triglav Osiguranje d.d., Sarajevo. As a result, Triglav Osiguranje d.d., Sarajevo became a 100% owner of said company. Due to the sale of the participating interest, the Triglav Group’s participating interest in said company decreased by 1.13 percentage points.
With the in-cash contribution of BAM 30 thousand or EUR 15 thousand, Triglav Osiguranje d.d., Sarajevo established Triglav, upravljanje nekretninama d.o.o., Sarajevo, thereby becoming its 100% owner.
Zavarovalnica Triglav made subsequent capital contributions of EUR 2.3 million to its associate Trigal d.o.o., thereby remaining a 49.9% owner of said company.
Triglav Osiguruvanje a.d., Skopje in the amount of MA K 3.2 million or EUR 52 thousand, thereby increasing its participating interest to 81.32%.
Triglav INT d.o.o., Ljubljana acquired a 0.12% participating interest from non-controlling interest holders of Triglav Osiguruvanje a.d., Belgrade, thereby becoming its 100% owner. The consideration totalled RSD 3.7 million or EUR 33 thousand.
Triglav INT, holdinška družba d.d. was transformed into Triglav INT, holdinška družba d.o.o.
Based on its strategic plans, Zavarovalnica Triglav’s associate Nama d.d., Ljubljana carried out a spin-off of its retail business and transferred it to its newly established subsidiary Nama IN d.o.o., Ljubljana.
The changes in the Triglav Group are discussed in greater detail in Section 2.1.4 of the Accounting Report.
| 100.00% | Triglav, Zdravstvena zavarovalnica d.d., Koper |
|---|---|
| 100.00% | Triglav, pokojninska družba d.d., Ljubljana |
| 34.00% | Društvo za upravljanje EDPF a.d., Banja Luka |
| 51.00% | |
| 100.00% | Pozavarovalnica Triglav Re d.d., Ljubljana |
| 49.00% | Triglav Savjetovanje d.o.o., Zagreb |
| 51.00% | |
| 100.00% | Triglav Svetovanje d.o.o., Domžale |
| 49.00% | Triglav Savetovanje d.o.o., Beograd |
| 100.00% | Triglav Osiguranje d.d., Zagreb |
| 100.00% | Triglav Osiguranje a.d.o., Beograd |
| Company | Location | Participating Interest |
|---|---|---|
| Autocentar BH d.o.o. | Sarajevo | 100.00% |
| Triglav INT d.o.o. | Ljubljana | 100.00% |
| Triglav Osiguranje d.d. | Sarajevo | 97.78% |
| Sarajevostan d.o.o. | Sarajevo | 93.02% |
| Triglav Savjetovanje d.o.o. | Sarajevo | 100.00% |
| Triglav Osiguranje a.d. | Banja Luka | 100.00% |
| Triglav upravljanje nekretninama d.o.o. | Sarajevo | 100.00% |
| Lovćen životna osiguranja a.d. | Podgorica | 100.00% |
| Lovćen Osiguranje a.d. | Podgorica | 99.07% |
| Lovćen auto d.o.o. | Podgorica | 100.00% |
| Triglav Osiguruvanje a.d. | Skopje | 81.32% |
| Triglav Osiguruvanje Život a.d. | Skopje | 80.00% |
| Triglav Avtoservis d.o.o. | Ljubljana | 100.00% |
| Triglav penzisko društvo a.d. | Skopje | 100.00% |
| Triglav Skladi d.o.o. | Ljubljana | 100.00% |
| PROF-IN d.o.o. | Sarajevo | 62.54% |
| 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% |
| TRIGAL d.o.o. | Ljubljana | 49.90% |
| Nama d.d. | Ljubljana | 39.07% |
| Nama IN d.o.o. | Ljubljana | 100.00% |
| Triglavko d.o.o. | Ljubljana | 38.47% |
| Zavod Vse bo v redu | Ljubljana | 100.00% |
| MTC Fontana d.o.o. | Maribor | 100.00% |
| Medi Cons kardiologija d.o.o. | Novo mesto | 100.00% |
| Diagnostični center Bled d.o.o. | Bled | 50.00% |
| Gastromedica d.o.o. | Murska Sobota | 100.00% |
| Internistična GE ambulanta d.o.o. | Nova Gorica | 100.00% |
| Alifenet d.o.o. | Ljubljana | 23.58% |
| Cardial d.o.o. | Ljubljana | 100.00% |
| DC Naložbe d.o.o. | Bled | 100.00% |
| Kirurški sanatorij Rožna dolina d.o.o. | Ljubljana | 100.00% |
| Neuroedina d.o.o. | Bled | 100.00% |
| MD T & T d.o.o. | Maribor | 39.20% |
Shareholder
Zavarovalnica Triglav d.d.
Subsidiary
Two or more subsidiaries
| Marica Makoter | Member | First appointment to the office and end of term of office: | 2011–2026 | Employed at the Triglav Group: | 2001 |
|---|---|---|---|---|---|
| Tadej Čoroli | Member | First appointment to the office and end of term of office: | 2014–2024 | Employed at the Triglav Group: | 2001 |
As at 31 December 2021, the Management Board of Zavaro valnica Triglav was comprised of the following members:
| Name | Position | First appointment to the office and end of term of office | Employed at the Triglav Group |
|---|---|---|---|
| David Benedek | Member | 2014–2024 | 2001 |
| Uroš Ivanc | Member | 2017–2022 | 2017 |
| Barbara Smolnikar | Member | 2013–2024 | 1997 |
| Andrej Slapar | President | 2013–2024 | 1997 |
Individual areas were discussed within the framework of the Supervisory Board’s committees. Based on their findings, proposals and careful assessment, the Supervisory Board passed appropriate resolutions.
The Supervisory Board monitored the implementation and effectiveness of the Triglav Group’s 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.
| Andrej Andoljšek | Chairman |
|---|---|
| Branko Brečko | Vice Chairman |
| Peter Kavčič | Member |
| Igor Stebernak | Member |
| Tomaž Benčina | Member |
| Jure Valjavec | Member |
| Peter Celar | Member, Representative of employee |
| Branko Gorjan | Member, Representative of employee |
| Igor Zupan | Member, Representative of employee |
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 2021 (hereinafter: the report) and its Opinion on the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2021.
The Supervisor y Board and its committees in 2021
The composition of the Supervisory Board in 2021 is described in Section 5 Corporate Governance Statement (Supervisory Board) of the Business Report. In 2021, the Supervisory Board held eight sessions and had four committees: the Audit Committee, the Appointment and Remuneration Committee, the Strategy Committee and the Nomination Committee. The composition of the Supervisory Board committees in 2021 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 2021) of the Business Report.
In 2021, the Audit Committee held six meetings, at which it, among other things:
Committee member, Luka Kumer.
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.
The main activities of the Appointment and Remuneration Committee in 2021 included:
The Committee met eleven times in 2021.
meetings in 2021, devoted special attention to the implementation of the Triglav Group strategy and the proposal of the Triglav Group strategy for 2022–2025 and starting points for the development of the Triglav Group business plan for 2022.
The Nominating Committee was established on 12 November 2020 with the aim of carrying out the nomination procedure for the appointment of candidates for Supervisory Board members – shareholder representatives to replace Andrej Andoljšek, Žiga Škerjanec, Mario Gobbo and Milan Tomaževič, whose terms of office expired on 13 June 2021. The Nominating Committee held ten meetings in 2021.
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 2021 are based on the supervision of the Company’s and the Group’s operations performed by the Supervisory Board in 2021, acting within its powers. The Supervisory Board held eight sessions in 2021.
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 organization of its work are set out in the Rules of Procedure of the Supervisory Board, which are published on the Company’s website.
Peter Kavčič and Jure Valjavec as new Supervisory Board members;
With regard to the supervision of the management of the Company’s operations, in 2021 the Supervisory Board:
The costs in connection with the Supervisory Board’s work other than the remuneration paid to its members and committees (disclosed in Section 5.6 Management and supervisory bodies and their remuneration in the Accounting Report and in Section 5.3.3 Supervisory Board in the Business Report) mostly included translation costs of materials for Supervisory Board sessions and meetings of its committees, interpreting costs and the rental costs of interpretation equipment 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 amounted to EUR 331,669 in 2021.
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.
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 (except employee representatives Branko Gorjan and Peter Celar) declared themselves independent in accordance with the Slovenian Corporate Governance Code criteria (all statements of independence are published on the Company’s website).
In 2021, to the knowledge of the Supervisory Board, there was no case of conflict of interest with an individual Supervisory Board member in the discussions and decisions of the Supervisory Board and its committees, or appropriate action was taken to manage it. 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.
In 2021, the Supervisory Board actively participated in drafting the new Triglav Group Business Report.
Risk Management
Strategy for 2022–2025 and also approved it, with special emphasis placed on sustainable development. With respect to the latter, clear guidelines and goals were set in line with the vision of creating a long-term stable basis for profitable and safe operations and promoting the transition to a more sustainable society.
taking into account the adequate range of qualifications, knowledge and experience in view of the circumstances and requirements under which the Company operates. A 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.
In 2021, the onboarding programme for Supervisory Board members was implemented, as part of which were presented the governance system, key areas and reports of Zavarovalnica Triglav d.d., key functions and operation of the Management Board and the Supervisory Board as well as obligations of the Supervisory Board members.
The Supervisory Board believes that its composition in 2021 corresponded to the size, activities and set objectives of both the Company and the Group, which enabled it to make quality decisions.
Despite the persisting difficult circumstances related to the COVID-19 pandemic, 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. In view of the above, the Supervisory Board is of the opinion that its work and the work of its committees in 2021 were successful.
In accordance with paragraph three of Article 165 of the Insurance Act (Zavar-1), the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2021 was submitted to the Supervisory Board, which took note of it at its session on 30 March 2022. The report contains an overview of the implementation of the Internal Audit Department’s (hereinafter: IAD) planned activities in 2021 and a summary of material audit findings, including an assessment of the adequacy and effectiveness of risk management and the internal control system of the audited areas, 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, the IAD assessed that risk management and the internal control system of the audited areas within the Company and at the Group level were overall appropriate and were constantly improving. The IAD also carried out advisory activities, followed up on the implementation of recommendations made by external auditors, and carried out tasks related to quality assurance and improvement of the IAD and the internal audit departments of other Group members. The IAD reported on the implementation of its work plan, material audit findings and the implementation of recommendations on a quarterly basis to the Audit Committee and on a semi-annual basis to the Supervisory Board.
that the IAD operates in accordance with the internal auditing rules defined in binding legal regulations, standards and codes. 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 2021, the Supervisory Board is of the opinion that the IAD operated in line with its work plan for 2021, 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 2021.
Based on its monitoring and supervision of the Company’s operations in 2021 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 consistently pursued its set strategic objectives.
The Group generated EUR 132.6 million in consolidated profit before tax (index 146) and EUR 113.0 million in consolidated net profit (index 153). The parent company’s net profit amounted to EUR 73.4 million (index 127).
The Group’s insurance companies generated insurance and coinsurance premiums of EUR 1,353.0 million in the preceding year (index 110), of which EUR 794.4 million (index 110) was earned by the parent company. Premium growth was achieved in all insurance segments and in all markets where the Group operates.
The Group recorded gross claims paid of EUR 736.6 million, an increase of 6% relative to 2020. Gross claims paid by the parent company amounted to EUR 408.9 million (index 100).
Total consolidated gross operating expenses incurred by the Group in the amount of EUR 333.4 million rose by 9% and those of the Company totaled EUR 195.0 million (index 108).
The Group's total equity amounted to EUR 933.0 million as at 31 December 2020.
was 7% higher relative to the preceding year. Return on equity stood at 12.5%. The Group’s financial stability, high capital adequacy and high profitability in 2021 were again confirmed by the two renowned rating agencies S&P Global Ratings and AM Best by assigning an “A” rating to the Group. Both credit ratings have a stable medium-term outlook.
The findings of the Supervisory Board are also based on the following:
The Management Board submitted the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2021 to the Supervisory Board.
The Supervisory Board hereby ascertains that the Annual 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 2021 was audited by the audit firm Deloitte revizija d.o.o., Ljubljana, which on 10 March 2022 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 2021.
In their report as an independent auditor, they took a stance on key audit issues regarding the assessments which are the basis for the calculation of insurance technical provisions and the liability adequacy test (LAT) and expressed their opinion on other information contained in the Annual Report as to their consistency with the separate and consolidated financial statements and their compliance with the applicable legislation and other regulations.
The certified auditor, a key audit partner, was present at the session of the Supervisory Board and the Audit Committee regarding those items where the Annual Report was discussed and provided the requested additional explanations to the Audit Committee and the Supervisory Board. The Audit Committee discussed the report after the pre-audit and the final audit and the letter to the Management after the audit, which was also discussed by the Supervisory Board.
On the basis of a detailed verification, the Supervisory Board established that the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2021, 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 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 2021, 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.
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 2021.
At its session, the Supervisory Board also discussed the Remuneration Report for 2021, which was verified by the authorised auditor Deloitte revizija d.o.o., Ljubljana, and in accordance with paragraph six of Article 294b of the Companies Act (ZGD - 1) issued the auditor’s report confirming that the Remuneration Report contains all the information required by paragraphs two and three of Article 294b of the ZGD-1. The review of the company’s report was performed by a certified auditor in accordance with the International Standard on Assurance Engagements 3000 – Assurance Engagements, except for audits or investigations of past accounting information.
In the 2022 session, the Supervisory Board examined the Management Board’s proposal for the distribution of accumulated profits as at 31 December 2021, which will be subject to a 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 87,660,380.45 as at 31 December 2021 shall be distributed as follows:
The Supervisory Board hereby proposes to the General Meeting of Shareholders to grant a discharge to the Management Board for its work in 2021.
Andrej Andoljšek,
Chairman of the Supervisory Board
Ljubljana, 30 March 2022
The Triglav Group has revised its strategy for 2025. The Group continues to pursue its existing key strategic guidelines, while upgrading them in terms of growth and development activities and an improved client-centric approach. By focusing on these goals, the Group continues to carry out its digital transformation process and develop service-oriented business models and ecosystems which address interrelated client needs. The Group's planned operations remain profitable and safe. Through its sustainable operations, the Group continues to provide a development-oriented environment for its employees, maintain ties with its partners and be a stable, safe and profitable investment for investors.
We build safer future. Triglav is leading Insurance and financial group in Adria region, synonymous with the best user experience. Through our operations we are creating above-average value for our key stakeholders and promote transition to sustainable company. Responsiveness, simplicity and reliability are reflected in our day-to-day operations.
We set standards of outstanding client experience - anytime, anyplace. Triglav Group will remain leader in all its core businesses in Adria region.
The Triglav Group is an independent insurance and financial group with high credit ratings, holding a dominant market position in the Adria region. Its strategic guidelines are aimed at achieving a high profit and profitable growth.
The Triglav Group continues with its digital transformation process with the aim of becoming the leading digitalised insurance and financial group in the Adria region. By developing digital services, automating processes and implementing advanced digital technologies, it will ensure the best digital user experience to its clients.
The Triglav Group is gradually transitioning from an insurance-oriented business model to a mostly service-oriented business model and ecosystem, which address many interrelated client needs in terms of insurance products and assistance and related services.
The Triglav Group continues to create a highly effective and service-oriented organisational culture, which supports strategic business guidelines, and an organisational environment, which enables the Group to attract, develop and retain competent, engaged, healthy and satisfied employees.
| Year | Total Revenue (in EUR billion) | Return on Equity (ROE) |
|---|---|---|
| 2019 | 1.26 | 10% |
| 2020 | 1.32 | 10.9% |
| 2021 | 1.46 | 8.9% |
| 2022 | 1.6 | 12.5% |
| 2023 | ||
| 2024 | ||
| 2025 |
By pursuing sustainability goals, the Triglav 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.
The Group realises its mission of creating a safer future based on a sustainability orientation using environmental, social and governance factors. The Group aims to play a leading role in integrating the best global ESG practices into its operations in the Adria region and knows how to identify the opportunities and risks of sustainable development. Its sustainable (ESG) ambitions for 2025 are divided into four key areas.
In both strategic activities, insurance and asset management, the Group’s activities will be focused on the transition to a climate-neutral and climate-resilient circular economy. In carrying out its insurance and investment activity, the Group will promote sustainable economic activity, energy efficiency and energy from renewable sources with an aim to reduce greenhouse gas emissions.
The ESG aspects will be 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 but also reduce its exposure to Coal Exit List issuers 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 parametric insurance products for droughts, floods and other climate risks. The Group will promote its range of insurance products related to sustainable mobility and provide effective risk protection for companies involved in the production of energy from renewable sources (solar power plants, wind farms and others). The Group will design the policy on insurance for coal mines and thermal power plants by taking into account national strategies to phase out coal and transition to a climate-neutral economy.
The Group is implementing an assessment of suppliers by ESG criteria and comprehensive carbon footprint measurement and management (Scopes 1, 2 and 3). A 15% reduction in location-based (Scopes 1 and 2) carbon footprint per employee is planned by 2025, thereby pursuing the 2050 carbon neutrality target in line with the European Green Deal.
Furthermore, by 2025 the Group will increase the share of electricity from renewable energy sources, reduce energy and paper consumption per employee and total waste generated per employee, and increase the share of electric and hybrid vehicles in its fleet to at least 30%.
The Group acts with responsibility towards its employees, clients, partners and community at large. It aims to maintain high levels of client (NPS) and employee satisfaction. The concept of flexible working will be implemented by 2023 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 social responsibility and environmental projects, 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).
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 also increase the scope of public disclosures on its sustainable operations by 2025. In addition to using Global Reporting Initiative (GRI) criteria, which it has done for several years, the Group will include reporting according to Sustainability Accounting Standards Board (SASB), implement disclosures according to CDP questionnaire on climate change and TCFD metrics and targets (Task Force on Climate-related Financial Disclosures) and begin using the United Nations Principles for Sustainable Insurance (UN PSI).
At Group level, sustainability-related activities are coordinated and directed by the Sustainable Development Coordinator, monitored by the Compliance and Sustainable Development Committee and decided on by the parent company's Management Board.
See Section 12 Sustainable development for more information about key ESG topics in the Triglav Group and related disclosures.
The baseline year for comparison is 2019.
The Triglav Group consistently pursued its strategic guidelines as a modern and dynamic insurance and financial group, which is the leader in both Slovenia and in the Adria region. In a still uncertain and volatile business environment, the Group regularly assessed impacts on its operations according to various scenarios and effectively coped with any increased risks arising from the COVID-19 pandemic.
We build their trust with a hybrid business model, which allows them to choose how they do business with us. Our job is to know our clients and offer them what they need – with modularly designed products, automated claim reporting processes and other advanced digital services available anywhere. We have built solid data warehouses, which we will use together with back office functions for the mutual benefit of both our clients and the Group.
We have therefore adopted an approach to digitalisation, which enables a seamless, fluid transition between the physical and digital worlds.
Gregor Kovačič
Executive Director at Zavarovalnica Triglav
The year 2021 was again marked by intense development activities at Group level. In this respect, important innovations for further business digitalisation were introduced and the completion of several strategic projects was accelerated. An overview of what was achieved shows that, despite the extremely changed business environment, the foundations of the Group’s operations were further consolidated, their flexibility, adaptability and resilience increased and the set strategic goals were achieved. Among the achievements stands out stable remote business, which together with modern and innovative ways of working and business processes is an important milestone in the digital transformation of the Group’s operations. The Group is satisfied with the response and the results achieved and so are its clients, who rated the Group the highest to date. The new financial year has begun with a revised strategy to 2025, which has again set high strategic goals on a solid foundation.
12
GRI GS 103-1, 103-2, 103-3
The Triglav Group performed well and in the third quarter even raised the estimate of the originally planned annual profit. Profit before tax amounted to EUR 132.6 million, up by 46% relative to the year before (see Section 8 Financial result of the Triglav Group and Zavarovalnica Triglav for more details).
Despite the challenging market situation, which was marked by fierce competition, the Group increased the written premium volume by 10%, exceeding the planned figures. Premium growth was recorded in all insurance markets and in all insurance segments. In the Slovenian market it was 4%, in the regional markets outside Slovenia it stood at 15% and in the international market it reached 40%. See Section 7.5 Gross written insurance, coinsurance and reinsurance premiums for further information on insurance premium.
The Group’s combined ratio reached a favourable 88.9%, which is in the lower end of its average target strategic value range (the company’s performance indicator in the core non-life and health insurance business excluding return on investment). Compared to the preceding year, it was lower by 2.3 percentage points due to an improvement in both the claims ratio and the expense ratio. See Section 8 Financial result of the Triglav Group and Zavarovalnica Triglav for more details.
The credit rating agencies S&P Global Ratings and AM Best reaffirmed the Group’s “A” credit rating with a stable medium-term outlook, thereby confirming the Group’s strong financial stability, capital adequacy and profitability. Achievement of the “A” credit rating is in line with the Group’s strategy. It ensures an appropriate competitive position of the Group in insurance, reinsurance and financial markets as it confirms its financial strength and sound performance. See Section 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav for more information.
The basis for developing the Triglav Group business plan for 2022 were strategic starting points and goals, the performance assessment and implementation of the business plan in 2021, market potential, competitive conditions, and forecasts of trends in the macroeconomic environment and the financial markets.
Expected business conditions: It is estimated that the macroeconomic environment will improve in 2022 compared to the previous year. The economic recovery is expected to continue and unemployment to fall. The biggest risks remain the uncertain epidemic situation and higher inflation that could result from a faster recovery in demand and a prolonged persistence of current global supply constraints. The consequences of current events in Ukraine also pose an additional risk.
Based on modern and digital technologies will be at the forefront.
An increase in the volume of claims paid is expected due to the growth of the insurance portfolio and other factors. With regard to major CAT events, trends typical of previous years are expected to continue, therefore the prudently selected reinsurance protection will be maintained.
The Triglav Group’s combined ratio is planned at below 93%.
Cost streamlining measures predominantly focused on the types of costs not directly related to insurance acquisition will continue to be implemented. Higher costs are expected in insurance acquisition, expanding digitalisation and investing in information technology. The planning of staffing levels and labour costs, which account for the bulk of the Group’s total operating expenses, will comply with the strategic guidelines, changes in business processes and the requirements of individual work areas.
Given the expected continuation of low interest rates, the Group plans a further decline in rates of return on investment, excluding unit-linked assets. The main elements of the Group’s investment policy thus remain unchanged and include ensuring security, liquidity and diversification of investments while achieving adequate profitability. The Group will maintain a conservative investment structure with an emphasis on fixed-income investments, while slightly increasing the share of alternative investments, which will result in higher expected returns at lower liquidity.
The Group will pursue the strategic guideline of increasing the volume of clients’ assets under management from non-compulsory saving and the effective management of assets at Group level. The key guidelines will be active asset management with high investment beliefs, which in the long run provide adequate profitability and portfolio risk management.
The Group will maintain its high financial stability and security by ensuring the amount of capital that, in accordance with strategic guidelines, adequately exceeds the set level of underwritten risks. This and profit earned will be the bases to retain high credit ratings assigned by the renowned credit rating agencies S&P Global Ratings and AM Best.
The planned figures for 2022 are based on the outlook, expectations about events and circumstances, and forecasts available to the Company when drafting the plan. The actual results, performance and events may significantly deviate from those taken into account in the plan. When publishing the interim results of the Triglav Group in 2022, the Company will each time comment on the Group’s planned annual profit before tax.
| 2019 | 2020 | 2021 | 2022 plan | |
|---|---|---|---|---|
| Profit/loss before tax | 100.9 | 90.9 | 132.6 | 120-130 |
| Gross written premium from insurance, co-insurance and reinsurance contracts | 1,184.2 | 1,233.8 | 1,353.0 | over 1,400 |
| Combined ratio in non-life insurance | 91.5% | 91.2% | 88.9% | below 93% |
The Company’s reliable governance system, which is based on effective risk management, enables it to implement its business strategy. The main governance guidelines take into account the set long-term objectives. They are defined in the Company’s Governance System and Policy, adopted by the Management and Supervisory Boards. The document is published on SEOnet, the Ljubljana Stock Exchange information system, and on the Company’s official website (www.triglav.eu).
In its operations in 2021, Zavarovalnica Triglav abided by the Slovenian Corporate Governance Code (hereinafter: the Code), which was adopted on 27 October 2016 and published in Slovenian and English on the Ljubljana Stock Exchange website at (www.ljse.si). Zavarovalnica Triglav’s statement of compliance with the Code for 2021 is published on SEOnet and the Company’s official website (www.triglav.eu).
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 as clarified by specific points of the Code:
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). Zavarovalnica Triglav also has its own code, which presents 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. It is published on the Company’s official website (www.triglav.eu).
The Statement of compliance with the Slovenian Corporate Governance Code is available both on SEOnet and the Company’s official website (www.triglav.eu).
Business Report
Corporate Governance Statement
Risk Management
Accounting Report
The Company uses a two-tier governance system. Its management and supervisory 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 and adopted rules of procedure. Zavarovalnica Triglav’s Articles of Association are published on its official website (www.triglav.eu).
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 latter does not lay down any specific provisions for the adoption of amendments.
Each share of Zavarovalnica Triglav gives its holder the right to:
All shareholders who are entered in the share register managed by KDD – Centralna klirinška depozitarna 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 herein. See the Insurance Act for further details.
In accordance with the Financial Instruments Market Act, the following three shareholders of Zavarovalnica Triglav hold a qualifying holding (as at 31 December 2021):
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 | Supervisory Board | Management Board |
|---|---|---|
| of all voting rights at the 46th General Meeting of Shareholders | 80% | 6 members |
| 5-year term of office | 9 members | 4-year term of office |
14
Zavarovalnica Triglav’s shareholders met once in 2021, i.e. on 25 May 2021, at the 46th General Meeting of Shareholders.
The total number of shares and voting rights represented at the General Meeting of Shareholders was 18,198,597 or 80.05% of all shares to which the voting rights are attached. The General Meeting of Shareholders was briefed on:
The shareholders adopted a resolution on the following distribution of the accumulated profit of EUR 89,624,175.26 as at 31 December 2020:
The shareholders granted a discharge for the 2020 financial year to both the Management Board and the Supervisory Board of Zavarovalnica Triglav d.d. and adopted amendments to the Company’s Articles of Association.
The General Meeting of Shareholders took note of the resignation of the Supervisory Board member Nataša Damjanovič, dated 18 June 2020, and of the expiry of the term of office as of 13 June 2021 of four Supervisory Board members, shareholder representatives: Andrej Andoljšek, Milan Tomaževič, Žiga Škerjanec and Mario Gobbo.
Andrej Andoljšek, Tomaž Benčina, Branko Bračko, Peter Kavčič and Jure Valjavec were appointed new Supervisory Board members, shareholder representatives, for the four-year term of office, starting as of 14 June 2021.
At the General Meeting of Shareholders, the Pan-Slovenian Shareholders’ Association (VZMD) announced an action to set aside resolution No. 3.1. The Company did not receive any lawsuit.
The Management Board manages 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.
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, which the Management Board members and other individuals are required to meet, 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.
Furthermore, the policy determines the fit and proper assessment criteria and procedures for the Management Board as a collective body. 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.
All members are required to collectively 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 Zavarovalnica Triglav operates.
In February 2021, a preliminary fit and proper assessment was conducted for Marica Makoter as a candidate for the Management Board member, Worker Director, for a new five-year term of office. In November 2021, the other members of the Management Board (Andrej Šlapar, Tadej Čoroli, Uroš Ivanc, Barbara Smolnikar and David Benedek) and the Management Board as a collective body were subject to periodic assessment. All members individually and the Management Board as a collective body were assessed as fit and proper.
The Diversity Policy is also taken into account when appointing an individual member of the Management Board. Its aim is to ensure complementarity and diversity in the Management Board by taking into account various qualifications, experiences and knowledge as defined in the Fit and Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d. as well as to achieve gender balance and representation of various age groups. The gender balance in the Management Board, which is appropriate to the Company’s size, the objectives it pursues and the procedures for selecting management body members and other procedures in the Company, is not predetermined. 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.
On 2 March 2021, the Supervisory Board reappointed Marica Makoter as the Management Board member, Worker Director, at the proposal of the Works Council. Her new five-year term began on 23 December 2021.
of whom one is the president. The number of the Management Board members, their powers, the manner of representation and presentation, and the delegation of the Management Board’s powers 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.
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.
| First and last name | Function | Area of work in the Management Board (as at 31 December 2021) | Start of term of office (the first) | End of term of office | Gender | Nationality | Date 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 (the Management Board Office, the Legal Office, the Internal Audit Department, the Corporate Communication Department and the Compliance Office). In charge of the Corporate Accounts Division, the Non-Life Insurance Division, the Triglav Group Subsidiary Management Division (excluding the subsidiaries outside Slovenia), HR matters related to the employees with special |
| Name | Position | Responsibilities | Start Date | End Date | Gender | Nationality | Year of Birth | Education | Fields of Expertise |
|---|---|---|---|---|---|---|---|---|---|
| Andrej Slapar | President | Responsible for the overall management and strategic direction of the company. | 22 May 2013 | 12 November 2024 | Male | Slovenian | 1972 | LL.B. | Management, strategic management, commercial law, insurance and reinsurance, actuarial science |
| Uroš Ivanc | Member | In charge of the Risk Management Department and the Strategic Planning and Controlling Department, the Non-Life Insurance Development and Actuarial Department, and the Accounting and Finance divisions, excluding the Investment Department, and the Triglav Group Subsidiary Management Division – the subsidiaries outside of Slovenia. Also responsible for investor relations (IR) and relations with credit rating agencies, as well as for environmental, social and corporate sustainable development (ESG) activities. | 14 July 2014 | 15 July 2024 | Male | Slovenian | 1975 | MSc in business and organisation | Management and organisation, strategic management, insurance, financial management, financial markets and analyses, asset management, risk management |
| Tadej Čoroli | Member | In charge of the Marketing Division, the Business Intelligence and Client Relationship Management Division, the Non-Life Insurance Claims Division, the Insurance Sales Division and the Digitalisation, Processes and Technology Division. | 29 July 2014 | 30 July 2024 | Male | Slovenian | 1975 | LL.M. | Management, strategic management, commercial law, insurance, marketing |
| Barbara Smolnikar | Member | In charge of the Life Insurance Division and the Life Insurance Development and Actuarial Department. Also responsible for money laundering prevention and bancassurance. | 17 October 2017 | 17 October 2022 | Female | Slovenian | 1967 | PhD in management | Management, strategic management, banking, bancassurance, financial markets and analyses, risk management |
| David Benedek | Member | In charge of the Strategic Procurement Department, the IT Division and the Investment Department. Also responsible for mergers and acquisitions (M\&A). | 29 August 2019 | 29 August 2024 | Male | Slovenian | 1973 | MSc in business and organisation | Management, strategic management, banking, insurance, financial markets and analyses, corporate governance |
| Marica Makoter | Member and Worker Director | Represents the workers’ interests as set out in the Worker Participation in Management Act. In charge of the Fraud Prevention, Detection and Investigation Department and the Change and Project Portfolio Management Department. Responsible for the Back Office Division and the Human Resource Management Division (excluding HR matters related to the employees with special powers). | 21 December 2011 | 23 December 2026 | Female | Slovenian | 1972 | LL.B. | Management, strategic management, commercial law, insurance, human resources and organisation, worker representation |
The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2021
Data on the remuneration of the Management Board members are also disclosed in Section 5.6 of the Accounting Report. The basis for the remuneration of the Management Board is the Remuneration Policy of Zavarovalnica Triglav d.d., which is based on Directive 2009/138/EC – Solvency II, as amended by Directive 2012/23/EU, and Commission Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC.
The Remuneration Policy of Zavarovalnica Triglav d.d. is designed to ensure the maintenance of appropriate capital strength of the Company, encourage reliable and effective risk management, limit the assumption of risks exceeding the allowed risk limits of the Company, and provide for the acquisition and retention of appropriately professionally qualified, competent, responsible and engaged employees. The policy is the foundation for implementing a robust and reliable governance system, ensuring responsible long-term development and business integrity and transparency. In 2021, it was amended in accordance with the requirements of the Regulation on sustainability-related disclosures in the financial services sector and taking into account the Triglav Group’s commitment to sustainability (ESG).
| Name and surname | Function | Fixed remuneration–gross (1) | based on quantitative criteria | based on qualitative criteria | Total variable remuneration (2) | Deferred remuneration–gross (3) | Severance pay (4) | Benefits and SVPI (5) | Claw-back (6) | Total gross (excluding deferred income, bonuses and SVPI) (1+2+4-6) | Total net (excluding deferred income, bonuses and SVPI) (1+2+4-6) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Andrej Slapar | President | 197,563 | 53,634 | 0 | 53,634 | 60,261 | 0 | 78,139 | 0 | 251,197 | 81,935 |
| Uroš Ivanc | Member | 188,487 | 50,953 | 0 | 50,953 | 57,248 | 0 | 49,819 | 0 | 239,440 | 83,244 |
| Tadej Čoroli | Member | 188,487 | 50,953 | 0 | 50,953 | 57,248 | 0 | 54,167 | 0 | 239,440 | 81,796 |
| Barbara Smolnikar | Member | 187,763 | 47,095 | 0 | 47,095 | 57,248 | 0 | 54,402 | 0 | 234,858 | 79,124 |
| David Benedek | Member | 187,798 | 26,652 | 0 | 26,652 | 35,211 | 0 | 55,352 | 0 | 214,450 | 72,253 |
| Marica Makoter | Member | 187,798 | 50,953 | 0 | 50,953 | 57,248 | 0 | 53,991 | 0 | 238,751 | 79,998 |
| Benjamin Jošar | Member until 2 November 2017 | 0 | 3,857 | 0 | 3,857 | 0 | 0 | 0 | 0 | 3,857 | 2,254 |
| Total | 1,137,896 | 284,097 | 0 | 284,097 | 324,464 | 0 | 345,870 | 0 | 1,421,993 | 480,604 |
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.
The data under item (2) contain the third portion of the bonus for 2017, the second portion of the bonus for 2018 and the first portion of the bonus for 2020, which were paid in 2021.
The data under item (3) contain the third portion of the bonus for 2018, the second and third portions of the bonus for 2019 and the second and third portions of the bonus for 2020, which will be paid out in the coming years.
The data under item (5) contain the benefits and the supplemental voluntary pension insurance premium.
The Supervisory Board is composed of six shareholder representatives and three employee representatives. As a supervisory body, it supervises the Company’s management with full responsibility. The Supervisory Board members’ term of office is four years, and they can be re-elected without term limits.
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. Their appointment and dismissal are made in accordance with the applicable legislation and the documents of the Company.
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 applicable legislation and internal documents. Andrej Andoljšek, Peter Kavčič, Tomaž Benčina, Branko Bračko and Jure Valjavec were appointed Supervisory Board members based on their fitness and propriety. In November 2021, the periodic fit and proper assessment of other Supervisory Board members (Igor Stebernak, Peter Celar, Branko Gorjana and Igor Zupan) and the Supervisory Board as a collective body was performed. All individual members and the Supervisory Board as a collective body were assessed as fit and proper.
In assessing the composition and performance of the Supervisory Board as a collective body along with a diverse gender and age structure, the Supervisory Board takes into account diversity particularly in such a manner 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 is taken into account in the appointment of an individual Supervisory Board member. Its goal is to ensure complementarity and diversity in the Supervisory Board by taking into account various 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.
The gender balance in the supervisory body, which is appropriate to the Company’s size, the objectives it pursues and the procedures for selecting supervisory body members and other procedures in the Company, is not predetermined. The criteria for selecting the candidates for Supervisory Board members, shareholder representatives, determine that in the event of a large number of candidates who meet all the requirements and possess in-depth knowledge in the specified areas women have priority due to meeting the diversity criteria. The Diversity Policy was taken into account both in the candidacy procedure and in the appointment of new Supervisory Board members, because their knowledge and experiences contribute to the greater diversity of the Board’s membership.
At its session on 18 June 2021, the Supervisory Board appointed Andrej Andoljšek its Chairman and Branko Bračko its Vice Chairman.
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 at www.triglav.eu). Besides the powers specified in the Companies Act and the Insurance Act, the Supervisory Board has the power to give consent to the decisions of the Management Board where the value of an investment exceeds the amount set out in the Rules of Procedure of the Supervisory Board, i.e. in the event of:
In accordance with the law and the Rules of Procedure, the Supervisory Board holds at least one session per quarter, or more if necessary.
Business Report
Corporate Governance Statement
Risk Management
| 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 Article 23 of the Corporate Governance Code | Existence of conflict of interest in 2021 | Membership in the supervisory and/or management bodies of other companies while serving on the Supervisory Board in 2021 | 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 | 14 June 2025 | 8 of 8 | Male | Slovenian | 1970 | BSc in Economics | Financial and general management, financial markets and analyses, banking, corporate governance, business and financial restructuring of companies | YES | NO | / | Strategy Committee | Member until 13 June 2021 and from 18 June 2021 | 4 of 4 |
| Branko Bračko | Member | 14 June 2021 | 14 June 2025 | 3 of 8 | Male | Slovenian | 1967 | BSc in Mechanical Engineering | Business strategy and business models, governance system | YES | NO | Supervisory Board member at Stanovanjsko podjetje Konjice d.o.o. | Strategy Committee | Chairman from 18 June 2021 | 2 of 4 |
| Tomaž Benčina | Member | 14 June 2021 | 14 June 2025 | 3 of 8 | Male | Slovenian | 1965 | BSc in Economics and BSc in Metallurgy | Financial markets, business strategy and business models, governance system, financial analyses | YES | NO | / | Appointment and Remuneration Committee | Chairman from 18 June 2021 | 2 of 11 |
| Peter Kavčič | Member | 14 June 2021 | 14 June 2025 | 3 of 8 | Male | Slovenian | 1969 | MSc in International Business | Financial markets, business strategy and business models, governance system, financial analyses | A |
| Chairman from 18 June 2021 | Member | ||||
|---|---|---|---|---|---|
| Igor Stebernak | Chairman | ||||
| 18 August 2016 | 3 June 2020 | ||||
| 2 June 2020 | 3 June 2024 | ||||
| 8 of 8 | Male | Slovenian | 1968 | BSc in Electrical Engineering, MBA | Banking, insurance, strategic management, financial markets and analyses, controlling, accounting and business process reengineering |
| YES | NO |
| 9 of 11 | 10 of 10 | 6 of 6 | |||
|---|---|---|---|---|---|
| Jure Valjavec | Member | ||||
| 14 June 2021 | 14 June 2025 | ||||
| 3 of 8 | Male | Slovenian | 1975 | Master of Science | Business strategy and business models, governance system |
| YES | NO |
| Milan Tomaževič | (former President of the Management Board of Zavarovalnica Triglav d.d.) | ||||
|---|---|---|---|---|---|
| Member | Vice Chairman | ||||
| 13 June 2017 | 18 August 2020 | ||||
| 13 June 2021 | 13 June 2021 | ||||
| 5 of 8 | Male | Slovenian | 1946 | BSc in Economics | Insurance and reinsurance, informatics, management and actuarial science |
| YES | NO |
| 13 June 2017 | 13 June 2021 | ||||
|---|---|---|---|---|---|
| 5 of 8 | Male | Slovenian | 1978 | LL.B. | Corporate law and finance and the operation of supervisory boards |
| YES | NO |
| 2 of 4 | 9 of 11 | 10 of 10 | |||
|---|---|---|---|---|---|
| Mario Gobbo | Member | ||||
| 12 June 2013 | 13 June 2021 | ||||
| 5 of 8 | Male | Italian | 1953 | PhD in Economics | Banking, financial management, financial markets and analyses, investment banking, investment, restructuring, acquisition of financial assets and privatisation |
| YES | NO |
| 29 May 2007 | 1 June 2019 | ||||
|---|---|---|---|---|---|
| 31 May 2019 | 2 June 2023 | ||||
| 8 of 8 | Male | Slovenian | 1958 | BSc Economics | Insurance |
| NO | NO |
| 14 March 1995 | 1 June 2019 | ||||
|---|---|---|---|---|---|
| 30 May 2015 | 1 June 2023 | ||||
| 8 of 8 | Male | Slovenian | 1960 | Economic technician | Insurance |
| NO | NO |
| 27 September 2019 | 1 June 2023 | ||||
|---|---|---|---|---|---|
| 8 of 8 | Male | Slovenian | 1972 | BSc in Administrative Organisation – IT Specialist | Insurance |
| YES | NO |
| First and last name | Supervisory Board committee | Attendance of 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 2021 |
|---|---|---|---|---|---|---|---|---|
| Simon Kolenc | Audit Committee (member until 13 June 2021) | 4 of 6 | Male | Slovenian | BSc in Economics | 1977 | Finance, accounting, audit | / |
| Luka Kumer | Audit Committee (member from 18 August 2021) | 1 of 6 | Male | Slovenian | BSc in Economics | 1981 | Financial markets, business strategy and business models, governance system, financial analyses | / |
| Boštjan Koler | Nomination Committee | 10 of 10 | Male | Slovenian | LL.B. | 1961 | Law | / |
By signing the Statement of Independence and Loyalty (www.triglav.eu), the members of the Supervisory Board undertook to adhere to the principles of independence laid down in item B of the Annex to the Slovenian Corporate Governance Code.
Data on the remuneration of the Supervisory Board members are disclosed in Section 5.6 of the Accounting Report. Their remuneration was in line with the resolution passed by the 42nd General Meeting of Shareholders of Zavarovalnica Triglav.
| Name and surname | Function (Chairman, Vice Chairman, member, external committee member) | Remuneration for performing the function – gross per year (1) | Attendance fees for SB sessions and committee meetings – gross per year (2) | Total gross (1+2) | Total net | Gross travel expenses | Net travel expenses |
|---|---|---|---|---|---|---|---|
| Andrej Andoljšek | Chairman | 26,125 | 2,981 | 29,106 | 21,169 | 278 | 202 |
| Branko Bračko | Vice Chairman | 12,028 | 1,265 | 13,293 | 9,668 | 555 | 403 |
| Tomaž Benčina | Member | 11,224 | 1,265 | 12,489 | 9,083 | 317 | 231 |
| Peter Kavčič | Member | 12,229 | 1,705 | 13,934 | 10,134 | 1,275 | 927 |
| Igor Stebernak | Member | 20,406 | 7,557 | 27,963 | 20,090 | 337 | 245 |
| Jure Valjavec | Member | 10,219 | 1,265 | 11,484 | 8,352 | 0 | 0 |
| Milan Tomaševic | Member | 10,018 | 1,716 | 11,734 | 8,534 | 278 | 202 |
| Žiga Škerjanec | Member | 10,188 | 5,852 | 16,040 | 11,666 | 278 | 202 |
| Mario Gobbo | Member | 9,339 | 2,156 | 11,495 | 7,572 | 0 | 0 |
| Peter Celar | Member | 20,210 | 6,721 | 26,931 | 19,587 | 730 | 531 |
| Branko Gorjan | Member | 18,708 | 2,981 | 21,689 | 15,775 | 0 | 0 |
| Igor Zupan | Member | 18,708 | 3,421 | 22,129 | 16,095 | 278 | 203 |
| Simon Kolenc | External committee member | 3,396 | 1,045 | 4,441 | 3,230 | 0 | 0 |
| Boštjan Koler | External committee member | 1,504 | 2,200 | 3,704 | 2,694 | 0 | |
| Luka Kumer | External committee member | 2,782 | 275 | 3,057 | 2,224 | 0 | |
| Total | 187,084 | 42,405 | 229,489 | 165,873 | 4,326 | 3,146 |
The amount paid to an individual’s account as the payment after deducting the income tax prepayment, which does not take into account any subsequent payments of an individual’s personal income tax.
In 2021, the Company had the following committees: the Audit Committee, the Appointment and Remuneration Committee, the Strategy Committee and the Nomination Committee as an ad-hoc committee. Supervisory Board committees prepared 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. The main committees are presented in the next diagram.
(an ad-hoc committee established to carry out a nomination procedure for the candidates for members of the Supervisory Board, shareholder representatives)
Transfer of the governance system and active management of direct subsidiaries
Governance policy of the Triglav Group’s subsidiaries
Standardisation and uniform rules and procedures in business segments
17
GRI GS 102-10, 102-18
The Appointment and Remuneration Committee had the following composition: Igor Stebernak as its chair until 13 June, Tomaž Benčina as its chair from 18 June, and Žiga Škerjanec (until 13 June), Jure Valjavec (from 18 June) and Peter Celar (until 13 June and from 18 June) as its members.
The Strategy Committee was composed of Milan Tomaževič as its chair until 13 June, Branko Bračko as its chair from 18 June, and Andrej Andoljšek (until 13 June and from 18 June), Žiga Škerjanec (until 13 June), Peter Kavčič (from 18 June) and Branko Gorjan (until 13 June and from 18 June) as its members.
The Nomination Committee as an ad-hoc committee was established by the Supervisory Board on 12 November 2020 due to the expiry of the four-year term of office of the Supervisory Board members Žiga Škerjanec, Andrej Andoljšek, Mario Gobbo and Milan Tomaževič. The committee existed until the election of Supervisory Board members, shareholder representatives, on 25 May 2021. The committee was composed of: Igor Stebernak as chair, Žiga Škerjanec and Peter Celar as members, and Boštjan Koler as the external member.
17
The Triglav Group is comprised of Zavarovalnica Triglav as the controlling company and its subsidiaries and associates. The subsidiaries operate as independent legal entities in accordance with the applicable legislation, resolutions passed by the general meetings and the management and supervisory bodies of subsidiaries, business cooperation agreements (if any) and other adopted internal documents implemented by individual subsidiaries.
The governance policy of the Triglav Group’s subsidiaries, which was updated in 2021, is the basis for the establishment and implementation of a robust and reliable governance system. The policy is designed to establish an internally consistent governance system of the Group by standardising and harmonising the rules and procedures in individual business segments within Zavarovalnica Triglav’s subsidiaries.
The main objective of the Group’s governance system is to implement uniform minimum standards for core business activities, reporting and supervision at Group level. The governance policy takes into account both the Group’s internal environment and its strategic objectives as well as external environment factors, such as local legislation and regulatory requirements, the business environment of subsidiaries and good business practices.
and mutual information of the Group’s subsidiaries. This approach also comprises business and professional coordination of activities within the Group, as well as holding various training courses with an aim to unify business processes, coordinate key functions and transfer know-how, corporate culture and good business practices at Group level.
Zavarovalnica Triglav as the controlling company actively manages its direct subsidiaries in accordance with the Governance Policy of the Triglav Group’s Subsidiaries. Direct subsidiaries assume responsibility for the transfer of the governance system and active management of their subsidiaries. The detailed methods of transferring the system and carrying out the activities are defined in the minimum standards for individual business segments. Their implementation in individual subsidiaries is monitored in a coordinated manner by the competent business areas of the parent company, which enables a comprehensive overview at Group level.
Based on experience in achieving strategic objectives, it was estimated that the governance system of the Group’s subsidiaries functioned appropriately even during the pandemic in the past two years. A responsive and effective subsidiary governance system continued to ensure ongoing monitoring of the business environment, the operations of subsidiaries and the implementation of the outlined strategy. Furthermore, identification of business opportunities and challenges both in the local and wider environment was encouraged to achieve the optimal development of individual subsidiaries and the whole Group.
| Subsidiary | Management | Supervisory function |
|---|---|---|
| Slovenia | Pozavarovalnica Triglav Re d.d., Ljubljana | Gregor Stražar – President Tomaž Rotar – Member Stanislav Vrtunski – Member Supervisory Board: Tadej Čoroli – Chairman, Tomaž Žust, Katja Modec, Janko Šemrov |
| Triglav, Zdravstvena zavarovalnica d.d., Koper | Meta Berk Skok – President Simon Vidmar – Member Supervisory Board: Uroš Ivanc – Chairman, Nataša Veselinovič, Tomaž Krevatin | |
| Triglav, pokojninska družba, d.d. Ljubljana | Aljoša Uršič – President Peter Krassnig – Member Vida Šeme Hočevar – Member Supervisory Board: Barbara Smolnikar – Chairman Nataša Veselinovič, Miha Grilec, Blaž Kmetec, Miran Kalčič, Vesna Vodopivec, Borut Simonič, Tomaž Jontes | |
| Triglav Skladi, družba za upravljanje d.o.o., Ljubljana | Benjamin Jošar – President Andrej Petek – Member Miha Grilec – Member Supervisory Board: David Benedek – Chairman, Jaka Kirn, Marica Makoter, Nataša Veselinovič, Matej Runjak | |
| Triglav Svetovanje, zavarovalno zastopanje d.o.o., Domžale | Edvard Kranjčič – Director Supervisory Board: Jasna Kajtazović – Chairman, Jana Polda, Matjaž Novak, Lidija Breznik | |
| Triglav INT, holdinška družba d.o.o., Ljubljana | Tedo Djekanović – Director Supervisory Board: Uroš Ivanc – Chairman, Nataša Veselinovič, Saša Kovačič | |
| Triglav Avtoservis d.o.o., Ljubljana | Edward Zabukovnik – Director Boris Kuhelj – Director Supervisory Board: Janez Obaha – Chairman, Nataša Novak Priveršek, Aleš Klement, Boštjan Molan | |
| Triglav, Upravljanje nepremičnin d.o.o., Ljubljana | Mitja Selan – Chief Executive Officer Rok Pivk – Director Supervisory Board: David Benedek – Chairman, Ksenija Zajc, Nataša Novak Priveršek, Nataša Veselinovič | |
| Croatia | Triglav Osiguranje d.d., Zagreb | Marin Matijaca – President Denis Burmaz – Member Darko Popovski – Member Supervisory Board: David Benedek – Chairman, Tomaž Žust, Gorazd Jenko, Iztok Cimperman, Pave Srezović-Pušić |
| Serbia | Triglav Osiguranje a.d. o., Belgrade | Dragan Marković – President of the Executive Committee Blaž Jakič – Member of the Executive Committee Supervisory Board: Tedo Djekanović – Chairman, Fejsal Hrustanović, Vuk Šušić, Gorazd Jenko, Milan Tomažević |
| Montenegro | Lovćen Osiguranje a.d., Podgorica | Matjaž Božič – Executive Director Board of Directors: Tedo Djekanović – Chairman, Tomaž Žust, Alenka Vrhovnik Težak, Marjeta Gorinšek |
| Lovćen življenjska osiguranje a.d., Podgorica | Zorka Milić – Executive Director Board of Directors: Stanko Mugoša – Chairman, Slobodanka Vukadinović, Danilo Pavličić | |
| Bosnia and Herzegovina | Triglav Osiguranje d.d., Sarajevo | Edib Galijatović – President Edin Muftić – Member Supervisory Board: Tedo Djekanović – Chairman, Janko Šemrov, Uroš Cvetko, Aleš Levstek, Matej Gostiša |
| Triglav Osiguranje a.d., Banja Luka | Janez Rožmarin – Director Dejan Vujičić – Member of the Executive Committee Dragan Berić – Member of the Executive Committee Management Board: Darko Popovski – President, Iztok Šekoranija, Blaž Jakič | |
| North Macedonia | Triglav Osiguruvanje a.d., Skopje | Gjorgje Vojnović – Chief Executive Officer |
Tedo Djekanović – Chairman,
Darko Popovski, Matej Ferlan, Blaž Kmetec, Gjorgje Vojnović,
Vojdan Jordanov, Gjorgji Jančevski
Tedo Djekanović – Chairman,
Ivan Sotošek, Vilma Učeta Duzlevska, Gjorgji Jančevski, Vladimir Mišo Čeplak
Aljoša Uršič – Chairman,
Rok Pivk, Blaž Kmetec, Miroslav Vujič
On 28 May 2019, the General Meeting of Shareholders appointed the auditor Deloite revizija d.o.o. the auditor of Zavarovalnica Triglav for the 2019, 2020 and 2021 financial years.
The report on the work of the Internal Audit Department is included in Section 1.1 Risk management.
The integrated internal control and risk management system established within the Group is continuously adapted to the development, organisational changes and good practices, thereby maintaining its effectiveness. The system exceeds 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 the first section of Risk management. The internal control system was set up in all organisational levels, units and processes of the Triglav Group and includes:
in the course of their operations;
The Internal Audit Department is an independent organisational unit, set up 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.
Internal controls are guidelines and procedures established by the parent company Zavarovalnica Triglav and implemented within the Group at all levels. Their purpose is not only to manage the risks relating to financial reporting, but also to ensure reliability of financial reporting and compliance with the applicable laws and other external and internal regulations.
Accounting controls are based on the principles of truthfulness and an appropriate sharing of responsibilities, checking the performance of transactions, keeping of up-to-date records, compliance of books of account with the actual situation, 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.
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.
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 has not entered 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
Uroš Ivanc
Member of the Management Board
Tadej Čoroli
Member of the Management Board
Barbara Smolnikar
Member of the Management Board
David Benedek
Member of the Management Board
Marica Makoter
Member of the Management Board
18
Zavarovalnica Triglav’s share, which in December marked 10 years since its listing on the Ljubljana Stock Exchange Prime Market, achieved a total return of 27.3% and a dividend yield of 4.6% on an annual basis.
for the payment of a dividend of EUR 1.70 gross per share, which represented 53% of consolidated net profit for 2020.
As at 31 December 2021, the annual total return on Zavarovalnica Triglav’s share (ZVTG) was 27.3%, with a 4.6% dividend yield. The price-to-book ratio was 0.90.
With EUR 836.6 million in market capitalisation (index 123), Zavarovalnica Triglav is the fourth largest Slovenian listed company. The ZVTG share generated a stock market turnover of EUR 24.2 million (of which EUR 3.9 million in block trades), which ranks it among the most liquid shares on the Ljubljana Stock Exchange. A quarter of its stock market turnover (excluding block trades) was performed by the liquidity provider, which has been cooperating with the Company since 2019, when it started to provide its services on the Ljubljana Stock Exchange. According to the data available, the ZVTG share is included in indices of STOXX, S&P, Bloomberg and the Ljubljana, Vienna, Zagreb and Warsaw stock exchanges.
| Items | 31 December 2021 | 31 December 2020 | 31 December 2019 |
|---|---|---|---|
| Maximum closing price | 37.20 | 36.00 | 35.40 |
| Minimum closing price | 29.80 | 23.20 | 29.50 |
| Closing price | 36.80 | 30.00 | 33.30 |
| Book value per share (parent company) | 29.70 | 28.33 | 25.53 |
| Book value per share (consolidated data) | 40.93 | 38.16 | 34.73 |
| Net earnings per share (consolidated data) | 4.97 | 3.24 | 3.69 |
| Market capitalisation | 836,653,446 | 682,054,440 | 757,080,428 |
| Average daily trading volume (excluding block trades) | 80,554 | 131,945 | 135,518 |
| Paid dividend per share for the previous business year to be defined | 1.70 | 0.00 | |
| No. of shares | 22,735,148 | 22,735,148 | 22,735,148 |
| The percentage of floating stock | 30.73% | 30.73% | 30.87% |
Traded on Ljubljana Stock Exchange - LJSE
ISIN code SI0021111651
Ticker symbol ZVTG
Bloomberg ZVTG SV
Reuters ZVTG.LJ
of Shareholders for more information). As seen in the figure, ZVTG share growth outperformed the STOXX Europe 600 Insurance sectoral index of 35 shares of European insurance companies by 7 percentage points on an annual basis. In the same period, the Ljubljana Stock Exchange SBITOP index, in which the ZVTG share holds an 11% share, grew by 40%.
| 12/31/2020 | 01/31/2021 | 02/28/2021 | 03/31/2021 | 04/30/2021 | 05/31/2021 | 06/30/2021 | 07/31/2021 | 08/31/2021 | 09/30/2021 | 10/31/2021 | 11/30/2021 | 12/31/2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 100% | 110% | 115% | 123% | 130% | 140% | 150% | 160% | 170% | 180% | 190% | 200% | 210% |
| 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 |
|---|---|---|---|---|---|
| 100% | 120% | 140% | 160% | 175% | 180% |
An authorisation of the Insurance Supervision Agency is a prerequisite for:
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 holder of shares of an insurance undertaking that were acquired or are being held in contravention of the ZZavar-1 have no voting rights with respect to those shares. See the ZZavar-1 for further information.
There were no significant changes in the shareholder structure of Zavarovalnica Triglav in 2021. The stakes of the two largest shareholders, owned by the Republic of Slovenia (ZPIZ Slovenije and SDH d.d.), and the third largest shareholder, the Croatian pension fund, which appears in the Company’s share register on the fiduciary account of its custodian bank, remained unchanged.
The Company is pleased to note that in recent years natural persons have been actively trading in the ZVTG shares and gradually increasing their stake, which exceeded 12% as at the 2021 year-end. The stake of international institutional shareholders, which originate from more than 16 countries, mostly Europe and the United States, remained stable at around 16%.
| Source: | Centralna klirinško depotna družba | ||
|---|---|---|---|
| Two funds owned by the Republic of Slovenia: | 62.56% | International institutional shareholders: | 16.51% |
| Retail investors: | 12.33% | Slovenian institutional shareholders: | 8.60% |
As at the reporting date, 12,000 shareholders and custodian bank accounts were entered in Zavarovalnica Triglav’s share register. In early 2022, the number of subscribers declined by a third, which did not affect the Company’s shareholder structure. The decrease was due to the activities of Centralna klirinško depotna družba (KDD) provided by law regarding shares from the time of the ownership transformation of Slovenian companies, which later were not transferred to the trading accounts of stock exchange members or KDD.
19 GRI GS 102-5, 102-10
| Erste Group Bank - PBZ Croatia Osiguranje OMF account – fiduciary account, Austria | SDH d.d., Slovenia | ZPIZ Slovenije, Slovenia |
|---|---|---|
| 34.47% | 6.71% | 2.62% |
| 2.44% | 1.02% | 0.71% |
| 0.53% | 0.40% | 0.37% |
| 28.09% |
Source: Centralna klirinško depotna družba
In 2021, members of the Management Board and the Supervisory Board bought ZVTG shares on the Ljubljana Stock Exchange. The Company informed the public about these transactions in accordance with the law. The number of shares owned by the members of the Management Board and the Supervisory Board of Zavarovalnica Triglav as at the reporting date is shown in the table below.
| Name and surname | Post | Number of shares | Equity stake |
|---|---|---|---|
| Management Board | 2,605 | 0.01% | |
| Andrej Slapar | President | 900 | 0.00% |
| Uroš Ivanc | Member | 475 | 0.00% |
| Tadej Čoroli | Member | 150 | 0.00% |
| Barbara Smolnikar | Member | 180 | 0.00% |
| David Benedek | Member | 750 | 0.00% |
| Marica Makoter | Member | 150 | 0.00% |
| Supervisory Board | 1,884 | 0.01% | |
| Shareholders representatives | 280 | 0.00% | |
| Andrej Andoljšek | President | 0 | 0.00% |
| Branko Bračko | Deputy Chairman | 0 | 0.00% |
| Tomaž Benčina | Member | 0 | 0.00% |
| Peter Kavčič | Member | 0 | 0.00% |
| Igor Stebernak | Member | 0 | 0.00% |
| Jure Valjavec | Member | 280 | 0.00% |
| Employee representatives | 1,604 | 0.01% | |
| Peter Celar | Member | 400 | 0.00% |
| Branko Gorjan | Member | 1,204 | 0.01% |
| Igor Zupan | Member | 0 | 0.00% |
| Management and Supervisory Board combined | 4,489 | 0.02% |
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|---|---|
| 2.0 | 1.7 | 2.5 | 2.5 | 2.5 | 2.5 | 1.7 | 2.5 |
| 63% | 67% | 64% | 69% | 82% | 70% | 0% | 53% |
which was revised in March 2018, sets out 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 and the dividend policy are described in Section 1.3 Risk management.
Through the active management of relations with investors, shareholders and analysts, the Company promotes the attractiveness of its financial instruments. In doing so, the Company follows best international practices and, as one of the largest companies listed on the Ljubljana Stock Exchange (in December 2021 the Company marked 10 years since its listing on the prime market), strives to co-create the standards of this market.
The Company is committed to transparent information. All key information about the Company’s operations, position and outlook is regularly published in Slovenian and English on the SEOnet information system of the Ljubljana Stock Exchange and on the Company’s website www.triglav.eu.
In 2021, the Company communicated with investors predominantly via videoconferencing meetings, conference calls and by email. Communication with institutional investors followed the calendar of activities published on the Company’s website together with the presentation material. The Company participated in seven online investor conferences organised by stock exchange members and the stock exchange. In addition, the Company held four meetings with institutional investors immediately following the publication of its annual and interim results. Special attention was paid to shareholders who are private individuals and the Company made sure it was available to them via the call centre, direct lines and by email.
For any information for shareholders, investors and analysts, please use the contact information below.
Zavarovalnica Triglav, d.d., Ljubljana
Miklošičeva cesta 19, 1000 Ljubljana
Ms Helena Ulaga Kitek, Head of Investor Relations
Telephone: ++386 (1) 4 7 47 3 31
E-mail: [email protected]
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 Ratings (hereinafter: S&P) and AM Best. The Triglav Group was assigned an “A” stand-alone credit rating with a stable medium-term outlook by both.
In 2021 both credit rating agencies rated all individual elements of the overall credit rating as high as the year before and substantiated them in a similar way. In its report, S&P again assessed the business risk profile of the Triglav Group as strong, its financial risk profile as very strong and its risk profile as stable. Furthermore, the Group’s investment portfolio is of high quality and well-diversified, with most assets invested across the euro area. The risks related to life insurance products.
| Year | Credit rating | Medium-term outlook | Rating agency |
|---|---|---|---|
| 2021 | A | Stable | AM Best |
| 2020 | A | S\&P Global Ratings |
| Year | AM Best | S\&P Global Ratings | Rating |
|---|---|---|---|
| 2019 | Stable | A | |
| 2018 | Stable | A | |
| 2017 | Stable | A | |
| 2016 | Stable | A | |
| 2015 | Stable | A- | |
| 2014 | Positive | A- | |
| 2013 | Stable | A- | |
| 2012 | Negative | A- | |
| 2011 | Negative | A | |
| 2010 | Stable | A | |
| 2009 | Stable | A | |
| 2008 | Stable | A |
| ISIN | XS198 0276858 |
|---|---|
| Type | Subordinated bond (Tier 2) pursuant to the Solvency II regulations |
| Issue size in EUR | 50,000,000 |
| Currency | EUR |
| Coupon rate and payment | Fixed at 4.375% 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 |
| First call date | 22 October 2029 |
| Maturity date | 22 October 2049 |
| Maturity in years | 30.5 |
| Regulated market | Luxembourg Stock Exchange |
| Issue rating | BBB+ (S\&P) |
range over the next two to three years.
The latest credit rating report, i.e. the announcement of the credit rating agency from 2021, is available on the website www.triglav.eu under the Investor Relations tab.
Zavarovalnica Triglav has one issued subordinate bond, which is included in its capital adequacy. The bond was issued in 2019 as part of the Group’s regular capital management to ensure its optimal composition and cost efficiency and to replace the bond that matured on 21 March 2020. See the table below for more information.
54
• Economic growth has driven a positive trend in written premium in the Triglav Group markets.
• Premium growth was recorded in all insurance markets and in all insurance segments.
• The Triglav Group maintained its dominant market position in Slovenia, Montenegro and North Macedonia and improved its market share in most insurance markets.
• High profit growth due to higher business volume and lower claim frequency as a result of the COVID-19 pandemic.
• Low interest rates continued to reduce rates of return on investment.
In 2021, the global economy began noticeably, albeit unevenly, emerging from the grip of the COVID-19 pandemic. The speed of the recovery was largely determined by the strength of the epidemic waves and economic adaptability to the new situation. The more responsive US economy recovered rapidly in early 2021, followed by the economies of the rest of the developed world. In the summer, economic indicators began to slow down and with them economic activity. Its expansion was increasingly slowed by disruptions to supply chains and production, and towards the end of the year by a surge in energy prices and a renewed wave of infections, accompanied by the spread of the highly contagious Omicron variant.
Extensive stimulus measures for economic policies maintained favourable labour market conditions, and the healthy financial position of households and businesses strengthened aggregate demand. Production prices began to rise more visibly and soon spilled over into consumer prices. Year-on-year inflation rose to 7% in the United States in December, reaching its highest level in 31 years. In the euro area, it rose slightly less, by 5%, but the most since the introduction of the euro. According to estimates by international institutions, average inflation in the euro area in 2021 was 2.6% and will remain close to this level next year, while economic growth – projected at 5.1% – will slow to just over 4%. Analysts warn of great uncertainty due to the steady rise in inflation, but at the same time express confidence in the continued above-average economic growth.
In 2021, the Slovenian economy recovered quickly and above average. In the third quarter, its activity already exceeded the pre-epidemic level and outpaced the recovery rate in the euro area. Growth was driven by private consumption and gross investment, supported by government measures and increasingly favourable labour market conditions. With slightly faster growth in imports compared to exports, international trade, and with it industrial production, flourished throughout the year. Towards the end of the year, economic activity began to slow down, while inflation began to rise more markedly.
For the second year in a row, Slovenia’s relatively high gross government debt was maintained with a high budget deficit. According to the latest December estimate of the Bank of Slovenia, gross government debt will stand at 77.6% of GDP in 2021. According to planned public finance statistics, it will not change significantly in the next two years and will remain below the euro area average. Based on the Bank of Slovenia’s forecast, Slovenia’s GDP growth in 2021 will be 6.7%, and next year, despite slowing down to 4%, it will still be above average. Inflation will also remain high, averaging 1.9% in 2021 despite a 4.9% year-on-year in December, and is projected to rise to 3.8% in 2022. The projected inflationary trend is accompanied by a number of uncertainties, among which the epidemic situation is one of the key factors in future economic growth and inflation.
start reducing bond purchases. The adverse effect of rising interest rates was repeatedly highlighted by the European Central Bank (ECB), which committed itself to accelerated bond purchases in February. In July, it announced a new monetary strategy with a symmetrical 2% inflation target and consolidated its commitment to meeting it. At the end of the year, the two central banks officially announced that they would start reducing bond purchases, and FED analysts already announced a twofold increase in its key interest rate by 2022.
of the year. The yield on the similar Slovenian government bond reached 0.41% at the year-end, which is 0.58 percentage point more than at the beginning of the year. Government and corporate bond spreads remained virtually unchanged for most of the year, but grew slightly upon the latest wave of infections due to a new coronavirus variant.
For the stock markets of developed economies, the year 2021 was extremely good. New highs were reached by some of the most well-known stock indices, such as the US S&P and the German DAX. The former recorded 27.2% growth and the latter 15.8% on an annual basis. The Slovenian SBITOP index recorded accelerated growth and ranked among the most profitable at 39.8%. Emerging market indices fared worse on average, including China’s Hang Seng, which even recorded a 14.1% loss.
Premium growth was driven by favourable economic trends, while the challenging market situation continued, as did the aggressive price competition characteristic of insurance markets. Zavarovalnica Triglav and its subsidiaries are increasing the flexibility of their operations and managing the demanding market situation through their marketing, sales and pricing policies, by launching new products and redesigning existing ones, through the digitalisation and upgrading of business processes and by taking measures to improve underwriting results. See Section 11 Development and sales activities for more details.
The above-average return on capital markets in 2021 resulted from a strong economic recovery following the first responses to the COVID-19 pandemic. The European asset management market recorded high net inflows, while money market funds recorded net outflows. See Section 7.11 Asset management for more information.
The unfavourable situation continued in the financial markets due to low interest rates and resulted in lower rates of return on investment. In terms of extent and impact of major CAT events on the Group’s business results, 2021 was more favourable than the year before. The effects of major CAT events reached a total estimated value of 23.6 million euros. In Slovenia, frost and storms in April as well as hail and flood storms in August and September led to EUR 15.3 million in claims, while in North Macedonia hailstorms resulted in EUR 150,000 in claims. It is estimated that Triglav Group incurred EUR 8.2 million in reinsurance claims due to frost, hailstorms and floods in certain European countries, China and India. Profit was also positively affected by the lower claim frequency in some insurance classes as a result of the COVID-19 pandemic.
Insurance market by 0.5 percentage point to 27.9%. Advanced markets account for 81.4% of global premium (a 1.8% drop in premium volume) and the rest is contributed by emerging markets (0.8% premium growth). Swiss Re estimates that the economic recovery and greater risk awareness will drive demand for insurance and affect global premium growth. In 2021, global premium is expected to grow by 3.3%, with life insurance premium rising by 3.8% and non-life insurance premium by 2.8%. According to forecasts, premium growth will be slightly higher in 2022 and will reach 3.9% growth. Emerging markets will outperform advanced markets in both years, mainly due to China.
| Total written premium | Non-life insurance | Life insurance | ||||
|---|---|---|---|---|---|---|
| 2020 | 2021 estimate | 2022 forecast | 2020 | 2021 estimate | 2022 forecast | |
| Advanced markets | -1.8 | 2.7 | 3.0 | 1.5 | 2.2 | 2.8 |
| Emerging markets | 0.8 | 5.6 | 7.4 | 1.4 | 5.8 | 8.2 |
| World | -1.3 | 3.3 | 3.9 | 1.5 | 2.8 | 3.7 |
Source: Swiss RE, SIGMA 3/2021
GRI GS 201-2, SASB: FN-IN-450a.2
The Triglav Group sells insurance in seven insurance markets in six countries: Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia. The Group operates in the wider international environment through partnerships with foreign insurance brokerage and agency companies as well as with reinsurers.
The Slovenian insurance market, where Zavarovalnica Triglav and the specialised insurers Triglav, Zdravstvena zavarovalnica and Triglav, pokojninska družba are active, is well developed. Other insurance markets in the Adria region remain relatively underdeveloped but with great potential for growth. They continue to be dominated by motor vehicle insurance. Pozavarovalnica Triglav Re operates throughout the region and in the wider international environment.
As a consequence of the moderate or significant economic growth, all insurance markets also grew. The North Macedonian and Croatian markets recorded the highest relative premium growth. The Serbian insurance market and the market of Bosnia and Herzegovina strengthened significantly, whereas lower growth was recorded by the Montenegrin and Slovenian insurance markets.
| Country | Population (in million) | GDP growth (estimate in %) | 2021 GDP (estimate in USD million) | 2021 GDP per capita (estimate in USD) | 2021 inflation rate (estimate in %) | 2021 unemployment rate (estimate in %) |
|---|---|---|---|---|---|---|
| Slovenia | 2.1 | 6.3 | 60.9 | 28,939 | 1.9* | 4.5 |
| Croatia | 4.0 | 6.3 | 63.4 | 15,808 | 2.0 | 8.4 |
| Serbia | 6.9 | 6.5 | 60.7 | 8,794 | 3.0 | 9.3 |
| Montenegro | 0.6 | 7.0 | 5.5 | 8,838 | 2.0 | 14.8** |
| Bosnia and Herzegovina | 3.3 | 2.8 | 21.7 | 6,648 | 1.8 | 15.8 |
| North Macedonia | 2.1 | 4.0 | 13.9 | 6,712 | 3.1 | 15.9 |
| European Union | 445.5 | 5.1 | 17,078.4 | 48,305 | 2.4 | n/a |
Source: International Monetary Fund (IMF), World Economic Outlook, October 2021, * Statistical Office of the Republic of Slovenia ** Agency for Statistics of Montenegro (Q3 2021)
| Market | Market share | Market share trend | Ranked in 2021 | Ranked in 2020 |
|---|---|---|---|---|
| Slovenia | 38.6% | ↑ + 2.1-percentage point | 1 | 1 |
| Croatia | 5.6% | ↑ + 0.3-percentage point | 7 | 8 |
| Serbia* | 7.3% | ↑ + 0.4-percentage point | 5 | 5 |
| Montenegro | 39.0% | ↑ + 0.3-percentage point | 1 | 1 |
| Bosnia and Herzegovina | 8.6% | ● 0.0-percentage point | 4 | 4 |
| - Federation of BiH | 9.6% | ↓ - 0.1-percentage point | 5 | 5 |
| - Republic of Srpska | 6.6% | ↑ + 0.4-percentage point | 7 | 7 |
| North Macedonia | 13.2% | ↑ + 0.3-percentage point | 1 | 1 |
** 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. The Group maintained its dominant market position in Slovenia, Montenegro and North Macedonia. It not only increased its market share in all markets (with the exception of the Federation of Bosnia and Herzegovina), but also the volume of premium written in all markets. More information is provided below and in Section 7.5 Gross written insurance, coinsurance and reinsurance premiums.
GRI GS 102-4, 102-6
38.6% market share of the Triglav Group
1st place Slovenia
Premium per capita
(data for 2020)
1,226 EUR
Insurance market growth index in 2021
102.5
Although relatively small, the Slovenian insurance market is well developed. On a global scale, in 2020 Slovenia ranked 27th by premium per capita (three ranks higher than the preceding year) and 28th by insurance penetration (premium as percentage in GDP), which is a rank higher than the year before. The Slovenian insurance market again ranked 54th by written premium, accounting for 0.05% of the global insurance market and 0.9% of the largest European insurance market – UK (Swiss Re data for 2020).
| Premium per capita | Insurance penetration | |||
|---|---|---|---|---|
| (in EUR) | World rank (% of GDP) | World rank | ||
| Slovenia * | 1,226 | 27 | 5.6% | 28 |
| Croatia | 349 | 46 | 2.9% | 44 |
| Serbia | 135 | 62 | 2.0% | 63 |
| Switzerland | 6,329 | 4 | 8.4% | 15 |
| United Kingdom | 3,962 | 12 | 11.1% | 7 |
| Austria | 2,025 | 24 | 4.8% | 32 |
| Czech Republic | 592 | 35 | 2.9% | 45 |
| Poland | 358 | 45 | 2.6% | 47 |
| Turkey | 112 | 66 | 1.5% | 72 |
| European Union | 2,046 | - | 6.9% | - |
| Euro area | 2,386 | - | 7.2% | - |
Source: Swiss RE, SIGMA 3/2021
In 2020, the average premium per capita in Slovenia increased to EUR 1,226, reaching its peak value since 2007. Premium as percentage of GDP increased to 5.6% (compared to 5.2% in 2019).
A total of 13 insurance companies, four foreign branches and two reinsurance companies were active in the Slovenian insurance market in 2021, all members of the Slovenian Insurance Association (hereinafter: the SZZ). As of 1 January 2021, SOP insurer is no longer a member of the SZZ, while AVRIO zavarovalnica obrtnikov in podjetje d.d. has become its new member. In October 2021, Prva osebna zavarovalnica transferred part of its activities (supplemental pension insurance and pension annuities) to the newly established Prva pokojninska družba d.d.
There were eight composite and nine specialised insurers (life, health and non-life insurance) operating in Slovenia, not taking into account the direct insurance business of insurers from other EU Member States (FOS). Even though their share is growing, it is still negligible.
by 0.9%, with unit-linked life insurance recording high growth and capital redemption insurance experiencing a steep decline. Health insurance premium, which is taken into account in non-life insurance premium, was 1.5% lower than the year before.
The Slovenian insurance market continues to be highly concentrated, with the four largest insurers holding a 75.4% market share. With a 29.8% market share (compared to 27.7% in 2020), Zavarovalnica Triglav is the market leader, followed by Zavarovalnica Sava (a 17.0% market share). The Triglav Group (the parent company, Triglav, Zdravstvena zavarovalnica and Triglav, pokojninska družba) increased its market share by 2.1 percentage points to 38.6% in all insurance segments.
Slovenian Insurance Association (SZZ)
| Triglav Group | 38.6% |
|---|---|
| Sava Insurance Group | 20.3% |
| Generali | 17.0% |
| Vzajemna | 12.1% |
| Modra za varovalnica | 4.9% |
| Merkur | 2.1% |
| Other insurance companies | 5.1% |
| Premium as percentage in GDP (data for 2020) | 2.9% |
|---|---|
| Market share of the Triglav Group | 5.6% |
| Premium per capita (data for 2020) |
According to the International Monetary Fund (IMF), Croatia achieved 6.3% GDP growth in 2021. The unemployment rate is estimated at 8.4%, and inflation rose to 2.0% in line with global trends.
Tourism returned to the pre-pandemic level of successful tourist seasons and remained Croatia’s main strategic guideline and foundation of its economic success. Key challenges for maintaining economic growth in the future will include managing public spending, supporting investment, and fostering the business climate.
Through the Recovery and Resilience Facility, Croatia received EUR 6.3 billion in grants from the European Union, representing 12% of its GDP. Croatia’s accession to the euro area will remain the goal until the beginning of 2023, and the transition to the euro will also require adjustments from the private sector and financial institutions.
A total of 15 insurance companies (nine composite, four non-life, and two life insurers), one fewer than the year before, were active in the Croatian market, as the whole portfolio of Izvor osiguranje was transferred to Generali osiguranje. Total written premium grew by 11.9% and reached HRK 11.7 billion (EUR 1.6 billion). Non-life insurance premium increased by 12.7% and life insurance premium by 9.4%. In total written premium, non-life insurance premium increased to 75.3% (compared to 74.7% in 2020), while life insurance accounted for the rest.
Market concentration continued to be high, with the top three insurers controlling 47% of the market. With a 24.3% market share, Croatia osiguranje maintained its dominant position (1.5 percentage points less than in the preceding year). By increasing its market share by 0.3 percentage points to 5.6%, Triglav Osiguranje, Zagreb ranked seventh (a rank higher than the year before). Its premium growth stood at 19%, which is 7.2 percentage points more than the growth of the Croatian insurance market.
| Premium as percentage in GDP | (data for 2020) | 2.0 % |
|---|---|---|
| Market share of the Triglav Group | 7.3% | |
| Premium per capita | (data for 2020) |
135 EUR
109.7
5th place
Serbia
Source: Swiss RE, SIGMA 3/2021, National Bank of Serbia
The Serbian economy recovered rapidly due to a recovery in private consumption, investment growth and a new package of fiscal stimulus. According to forecasts, Serbia recorded a 6.5% GDP growth in 2021, the inflation rate rose to 3.0% and the unemployment rate fell to 9.3%.
The government’s priorities remain to reduce public debt relative to GDP, increase public investment in infrastructure and privatise state-owned enterprises. It is also necessary to address the structural problems of the labour market and the tax system in order to realise the country’s further growth potential.
Following the fulfillment of technical preconditions, the fourth thematic cluster of negotiations with the European Union was opened in December, marking the first move in two years. At the end of December, Serbia signed an additional six agreements with North Macedonia and Albania on the way to establishing a zone of free movement of people, goods and services, i.e. Open Balkan.
The Serbian insurance market was characterised by high market concentration, where 16 insurance companies were active (six composite, six non-life and four life insurers). The top three insurers (Dunav, Generali Osiguranje and DDOR) control 58% of the market. Total written premium increased by 9.7% in the first nine months of 2021 to RSD 88.6 billion (EUR 753 million). Non-life insurance premium recorded a 10.6% growth, while life insurance premium grew by 6.8%. In total written premium, non-life insurance accounted for the bulk (78.2%).
| Premium as percentage in GDP | (data for 2020) | 2.2 % |
|---|---|---|
| Market share of the Triglav Group | 39.0% | |
| Premium per capita | (data for 2020) |
According to estimates, Montenegro recorded a 7.0% growth in GDP, driven by growth in industrial production, retail and exports of goods, and the revival of the extremely important tourism sector. The inflation rate rose to 2.0% due to global economic developments.
Investments in one of Montenegro’s main development goals will continue, i.e. the construction of the Bar–Boljare motorway. An additional EUR 460 million will be invested in the project between 2022 and 2024, and the European Bank for Reconstruction and Development (EBRD) also expressed its willingness to support the financing.
Public debt and budget deficits are declining but remain high, which limits fiscal policy. In the accession process to the European Union, Montenegro fulfilled a great deal of requirements and opened all negotiating chapters, but improvements in the rule of law will be crucial in the future.
A total of nine insurance companies were active in the Montenegrin insurance market in 2021 – five non-life insurers and four life insurers, which together collected EUR 98.8 million in written premium, up by 5.5% relative to the preceding year. Non-life and life insurance premiums increased by 6.6% and 1.5% respectively. In total written premium, non-life insurance accounted for the bulk (79.7%).
| Premium as percentage in GDP (data for 2020) | 2.3% |
|---|---|
| Market share of the Triglav Group | 8.6% |
| Premium per capita (data for 2020) |
The second year of the COVID-19 pandemic was relatively unfavourable for Bosnia and Herzegovina, as vaccination was slow and difficult due to a vaccine shortage, and the country was also hit by forest fires and devastating floods. Its GDP is projected to grow by 2.8%, the negative inflation rate rose to 1.8% in the preceding year, and the unemployment rate remained high at 15.8%.
Bosnia and Herzegovina’s economic priorities include accelerating integration into the European Union, strengthening the fiscal system, reforming public administration, becoming a member of the World Trade Organization and promoting a dynamic and competitive private sector.
In August 2021, the International Monetary Fund approved a loan of EUR 300 million. To achieve further economic growth, it will be necessary to foster a business environment conducive to private investment, supporting small and medium-sized enterprises, and enabling the growth of large enterprises with important jobs.
A total of 25 insurance companies were active on the very small but highly competitive insurance market of Bosnia and Herzegovina, of which 11 were domiciled in the Federation of BiH and 14 in Republika Srpska, including branches. The insurance companies operating in the insurance market of Bosnia and Herzegovina as a whole collected BAM 817 million (EUR 418 million) in written premium, up by 8% relative to the year before. Premium written in the Federation of BiH grew by 7.9% and in Republika Srpska by 8.3%. In total written premium, non-life insurance premium accounted for 78.8%, slightly less than in the preceding year (79.3%).
In the Federation of BiH, the Agram corporate group (Adriatic osiguranje and Euroherc) remained the market leader with a 22.0% market share in 2021. Triglav Osiguranje, Sarajevo reached a 9.6% market share (compared to 9.7% in 2020) and maintained its fifth place.
Holding a 13.8% market share, Grawe osiguranje was the market leader in Republika Srpska. With a 4.5% market share, which was 0.2 percentage point less than the year before, Triglav Osiguranje, Banja Luka ranked eighth (ninth in 2020). The branch of Triglav Osiguranje, Sarajevo, which sells only life insurance, increased its market share to 2.1% (compared to 1.4% in 2020).
(data for 2020)
| 1.5% | 13.2% |
|---|---|
market share of the Triglav Group
115.5
North Macedonia
Source: Insurance Supervision Agency of North Macedonia
The economic situation in North Macedonia is normalising. The economy grew by 4.0% in 2021, the inflation rate rose to 3.1% and the unemployment rate fell slightly to 15.9% due to the improved economic situation.
Deep-rooted structural problems, issues faced by the automobile industry worldwide and weak state support are challenges that need to be overcome to ensure faster recovery. Future growth will depend primarily on the effective implementation of structural reforms to increase productivity and competitiveness, and investment in the green and digital transformation.
North Macedonia is constantly striving for regional integration, and the normalisation of relations with Bulgaria is crucial for the next step in the accession negotiations with the European Union. At the end of 2021, North Macedonia signed six agreements with Serbia and Albania to establish a zone of free movement of people, goods and services, i.e. Open Balkan.
A total of 16 insurance companies were active in the North Macedonian insurance market as at the 2021 year-end (11 non-life insurers and 5 life insurers), of which Osiguruvanje Makedonija also holds a licence to conduct reinsurance business. The insurance companies booked MKD 11.6 billion (EUR 189 million) in written premium, or 15.5% more than the year before. Non-life insurance premium, representing 82.8% of total written premium, grew by 15.6% and life insurance premium by 15.0%. The largest insurers booked 43% of total written premium. Market concentration was particularly high in the life insurance segment, with Croatia život and Grawe život controlling 60% of the market.
The Group’s total revenue amounted to 1,455.1 million, an increase of 10% relative to the previous year. In addition to gross written premium, which accounts for the bulk (93%) of total revenue, it is composed of other insurance income in the amount of EUR 48.8 million (index 119) and other income in the amount of EUR 53.3 million (index 122).
The Triglav Group continued to record high premium growth resulting in EUR 1,353.0 million in consolidated gross written insurance, coinsurance and reinsurance premiums, up by 10% relative to the year before. Total written premium increased in all insurance segments:
The proportion of non-life insurance premium in total consolidated gross written premium increased, whereas the proportions of life insurance premium and pension and health insurance premium decreased:
Non-life: 66.9%
Life and pensions: 18.5%
Health: 14.7%
The Group continues to increase the share of insurance premium written in markets outside Slovenia, which again grew by 0.8 percentage points compared to the year before. A total of 66.8% of consolidated gross written premium was earned in the Slovenian insurance market, while 19.0% of the premium was charged in markets outside Slovenia. International reinsurance premium accounted for 14.3%.
| Slovenia | 66.8% |
|---|---|
| Croatia | 6.4% |
| Serbia | 5.1% |
| Montenegro | 2.9% |
| Bosnia and Herzegovina | 2.7% |
| North Macedonia | 1.8% |
| International insurance and reinsurance | 14.3% |
| Country | Gross written premium | Index | Share | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|---|---|
| Slovenia | 903,429,648 | 104 | 66.8% | 872,398,259 | 860,025,699 | 101 | 70.7% | 72.6% |
| Croatia | 86,805,041 | 119 | 6.4% | 72,871,040 | 65,827,865 | 111 | 5.9% | 5.6% |
| Serbia | 69,274,521 | 114 | 5.1% | 60,770,184 | 58,052,569 | 105 | 4.9% | 4.9% |
| Montenegro | 38,578,564 | 106 | 2.9% | 36,249,030 | 36,627,953 | 99 | 2.9% | 3.1% |
| Bosnia and Herzegovina | 37,189,884 | 112 | 2.7% | 33,220,348 | 30,460,993 | 109 | 2.7% | 2.6% |
| North Macedonia | 24,847,107 | 118 | 1.8% | 20,976,376 | 23,738,156 | 88 | 1.7% | 2.0% |
| International insurance and reinsurance* | 192,850,785 | 140 | 14.3% | 137,290,128 | 109,440,872 | 125 | 11.1% | 9.2% |
| Total | 1,352,975,550 | 110 | 100.0% | 1,233,775,365 | 1,184,174,107 | 104 | 100.0% | 100.0% |
Premium growth was recorded in all insurance markets; in the Slovenian market, premium grew by 4%, in other markets in the Adria region outside Slovenia by 15% and in the international market by 40%. The Group insurance companies (excluding Pozavarovalnica Triglav Re) earned EUR 1,285.2 million in non-consolidated gross written premium, up by 10% relative to the preceding year.
EUR 50 3.7 million, up by 18% relative to the preceding year.
| Corporate clients: | 39.2% |
|---|---|
| Retail clients: | 60.8% |
In terms of sales channels, the Group increased the share of non-consolidated gross written premium, which was collected via own sales channels (agents, sales clerks, own points of sale, online and other own sales channels). This premium amounted to EUR 819.5 million, which is 1.2 percentage points higher than the year before, and represented 63.8% of total written premium. The remaining share (36.2%) of gross written premium of EUR 465.7 million was collected via external sales channels (insurance agency and brokerage companies, banks, post offices and roadworthiness test providers).
| Insurance company | Non-life | Life and pensions | Total | Index Non-life | Index Life and pensions | Index Total 2021 | Share | ||
|---|---|---|---|---|---|---|---|---|---|
| Zavarovalnica Triglav* | 606,012,099 | 188,834,407 | 794,846,506 | 111 | 108 | 111 | 61.8% | ||
| Triglav, Zdravstvena zavarovalnica | 199,383,889 | 1,505 | 199,385,394 | 101 | 0 | 101 | 15.5% | ||
| Triglav, pokojninska družba | 34,198,642 | 34,198,642 | 0 | 104 | 104 | 2.7% | |||
| Triglav Osiguranje, Zagreb | 78,679,653 | 8,126,021 | 86,805,674 | 121 | 102 | 119 | 6.8% | ||
| Triglav Osiguranje, Sarajevo | 17,202,096 | 14,149,277 | 31,351,373 | 103 | 130 | 114 | 2.4% | ||
| Lovćen Osiguranje, Podgorica | 33,949,652 | 33,949,652 | 106 | 0 | 106 | 2.6% | |||
| Triglav Osiguranje, Belgrade | 62,704,801 | 6,570,254 | 69,275,055 | 115 | 103 | 114 | 5.4% | ||
| Triglav Osiguranje, Banja Luka | 5,891,730 | 5,891,730 | 103 | 0 | 103 | 0.5% | |||
| Triglav Osiguruvanje, Skopje | 21,629,084 | 21,629,084 | 108 | 0 | 108 | 1.7% | |||
| Lovćen životna osiguranja, Podgorica | 4,628,912 | 4,628,912 | 0 | 108 | 108 | 0.4% | |||
| Triglav Osiguruvanje Život, Skopje | 3,236,126 | 3,236,126 | 0 | 316 | 316 | 0.3% | |||
| Total | 1,025,453,004 | 259,745,144 | 1,285,198,148 | 110 | 109 | 110 | 100.0% | ||
| Pozavarovalnica Triglav Re | 202,282,034 | 202,282,034 | 112 | 0 | 112 | ||||
| Consolidation eliminations | -124,920,433 | -9,584,199 | -134,504,632 | 110 | 136 | 112 | |||
| Total consolidated | 1,102,814,605 | 250,160,945 | 1,352,975,550 | 110 | 108 | 110 |
| Roadworthiness test providers | 30.0% |
|---|---|
| Banks and post offices | 32.2% |
| Other sales channels | 27.8% |
| Insurance brokerage companies | 25.2% |
| Own points of sale | 29.3% |
| Insurance agency companies | 31.1% |
| Sales clerks and insurance intermediaries | 1.1% |
| Insurance agents | 2.4% |
| 2.2% | |
| 1.3% | |
| 3.2% | |
| 2.2% | |
| 3.4% | |
| 2.9% | |
| 2.7% | |
| 2.9% |
In the non-life insurance segment, the Group’s insurance companies charged EUR 1,025.5 million in non-consolidated written premium, a 10% increase compared to the preceding year. Growth was achieved in all insurance groups, except in the accident insurance group.
Triglav Osiguranje, Skopje, primarily due to a higher number of concluded insurance contracts by both retail and corporate clients. The 18% decline in premium written by the Serbian insurance company was mainly a result of its strategic decision to maintain the portfolio’s profitability through a selective choice of risks. At Triglav Osiguranje, Banja Luka, the lower number of concluded insurance contracts resulted in lower written premium.
Comprehensive car insurance premium totaled EUR 155.4 million, up by 1% compared to the year before. The increase in premium was recorded by all insurance companies, except Lovćen Osiguranje, Podgorica, which recorded a loss of premium of some major policyholders, and Triglav Osiguranje, Zagreb due to a loss of premium on fronting and rent-a-car policies. The highest growth (15%) was achieved by Triglav Osiguranje, Banja Luka, predominantly by increasing the number of insurance policies taken out and acquiring a major policyholder – a car dealer. Zavarovalnica Triglav achieved a 1% premium growth and represented 83% of total written premium.
Real property insurance premium (real and natural disaster insurance and other damage to property insurance) grew by 23% to EUR 293.1 million. Its share in total written premium rose to 22.8%. A 31% premium growth was recorded in other damage to property insurance and a 7% premium growth in real and natural disaster insurance. By attracting new policyholders and increasing the scope of insurance coverage with existing policyholders, good results were achieved by Triglav Osiguranje, Belgrade (index 173), Triglav Osiguranje, Zagreb (index 150) and Zavarovalnica Triglav (index 120). The Croatian insurer recorded high premium growth mainly in animal insurance and crop insurance. The volume of the latter was also increased by the Serbian insurance company, which achieved a significant improvement due to the insurance of a major infrastructure project. The parent company has a 77% share in total written premium and recorded high premium growth in combined non-life insurance, computer and cyber insurance, and construction insurance.
In health insurance, EUR 208.3 million was collected in premium, up by 2%. The bulk (EUR 199.4 million) of premium was written by Triglav, Zdravstvena zavarovalnica, which recorded a 1% increase. Supplemental health insurance accounts for the majority of premium written by this insurance company, while high growth was also recorded by complementary health insurance as a result of effective marketing. Furthermore, by acquiring new policyholders, especially corporate clients, high growth was achieved by Triglav Osiguranje, Belgrade, Triglav Osiguruvanje, Skopje, Triglav Osiguranje, Zagreb and Triglav Osiguranje, Sarajevo.
In general liability insurance, the Group booked EUR 54.2 million in written premium, up by 12% relative to the year before. Zavarovalnica Triglav, accounting for 79% of total written premium, saw 11% growth. This increase was predominantly the result of high premium growth in product liability insurance, directors and officers liability insurance and freight forwarder liability insurance in international traffic. Furthermore, by acquiring new policyholders, high growth was recorded by Lovćen Osiguranje, Podgorica, Triglav Osiguranje, Zagreb and Triglav Osiguranje, Belgrade.
and subscribers due to the termination of cooperation with a major policyholder and a lower premium for the largest insurance subclasses, i.e. group accident insurance and AO-plus insurance. Other insurance companies saw an increase in written premium.
Credit insurance premium amounted to EUR 30.2 million, up by 19% compared to the year before (representing 2.3% of total written premium). Zavarovalnica Triglav’s written premium, which accounted for 72% of total written premium, grew by 14%. The main reasons for such favorable trend are mainly the high growth of commodity credit insurance premium due to the acquisition of new policyholders and the increase in consumer credit insurance premium due to extremely favorable interest rates on housing loans, which led to higher demand for this insurance. High growth in credit insurance premium is also characteristic of most other insurance companies, the highest being recorded by Lovćen Osiguranje, Podgorica (high premium for new consumer credit insurance) and Triglav Osiguranje, Sarajevo (acquisition of new policyholders).
Premium from other non-life insurance, accounting for 5.4% of total written premium, increased by 32% to EUR 69.2 million. With the exception of Lovćen Osiguranje, Podgorica, all other insurance companies significantly increased the volume of written premium. The most successful was Zavarovalnica Triglav, followed by Triglav Osiguranje, Banja Luka, Triglav Osiguruvanje, Skopje and Triglav Osiguranje, Zagreb. The parent company recorded high premium growth in marine insurance (high growth of international comprehensive marine insurance), goods in transit insurance (fronting insurance premium growth in international transport insurance) and aircraft insurance (premium growth resulting from effective cooperation with an agent). At Triglav Osiguranje, Banja Luka, high growth resulted from higher assistance insurance premium, while at Triglav Osiguruvanje, Skopje high premium growth was seen in goods in transit insurance by acquiring major policyholders and expanding the scope of insurance coverage with existing policyholders. At Triglav Osiguranje, Zagreb, significant premium growth was recorded in marine insurance (acquisition of major policyholders) and aircraft insurance (drone insurance).
Favourable premium trends were recorded in the Group’s life and pension insurance segment. Non-consolidated gross written premium totalled EUR 259.7 million, a 9% increase relative to the preceding year. Life and pension insurance represented 20.2% of total gross written premium, down by 0.1 percentage point compared to 2020.
Life insurance premium (traditional life, annuity, pension annuity and voluntary pension insurance) grew by 5% to EUR 112.3 million, representing 43.2% in the life and pension insurance group. Strong premium growth was seen in Triglav Osiguruvanje Život, Skopje (effective sales via banks and the sale of new group insurance in the event of death caused by an illness), Triglav Osiguranje, Sarajevo (effective sales via the bank sales channel) and Lovćen životna osiguranja, Podgorica (premium growth of group credit life insurance). Zavarovalnica Triglav’s written premium, which represents 71% of this group, remained at the level of the preceding year (index 100).
Insurance linked to the units of investment funds rose by 13% to EUR 127.2 million. This insurance class accounted for 49.0% of total written life and pension insurance premium. Zav arovalnica Triglav achieved 17% growth as a result of effective sales via own sales network and banks, while Triglav Osiguranje, Zagreb recorded 10% growth due to increased sales via own agency and payments due to surrenders and maturities. A high increase was recorded at Triglav Osiguruvanje Život, Skopje. Moreover, a higher volume of written premium (index 104) was achieved by Triglav, pokojninska družba, mainly due to higher premium payments into life cycle guarantee funds.
In capital redemption insurance, written premium totaled EUR 20.3 million, an 8% increase relative to the year before. Its share in the life and pension insurance group was 7.8%. The growth stemmed from higher regular premium payments and transfers of supplemental voluntary pension insurance assets from other insurance companies.
| Insurance class | Gross written premium 2021 | Gross written premium 2020 | Gross written premium 2019 | Index 2021/2020 | Index 2020/2019 | Share 2021 |
|---|---|---|---|---|---|---|
| Accident insurance | 37,801,508 | 38,181,300 | 40,143,471 | 99 | 95 | 2.9% |
| Health insurance | 208,329,989 | 204,060,344 | 184,488,230 | 102 | 111 | 16.2% |
| Comprehensive car insurance | 155,404,424 | 153,459,390 | 150,648,365 | 101 | 102 | 12.1% |
| Real property insurance | 293,121,568 | 237,408,204 | 213,086,928 | 123 | 111 | 22.8% |
| Motor liability insurance | 177,177,660 | 175,732,026 | 174,254,220 | 101 | 101 | 13.8% |
| General liability insurance | 54,208,387 | 48,408,488 | 48,981,728 | 112 | 99 | 4.2% |
| Credit insurance | 30,194,983 | 25,453,099 | 29,437,207 | 119 | 86 | 2.3% |
| Other non-life insurance | 69,214,485 | 52,465,305 | 49,014,062 | 132 | 107 | 5.4% |
| Non-life insurance | 1,025,453,004 | 935,168,156 | 890,054,211 | 110 | 105 | 79.8% |
| Life insurance | 112,261,447 | 106,799,922 | 103,963,662 | 105 | 103 | 8.7% |
| Unit-linked life insurance | 127,167,633 | 112,206,228 | 116,014,370 | 113 | 97 | 9.9% |
| Capital redemption insurance* | 20,316,064 | 18,880,523 | 17,655,904 | 108 | 107 | 1.6% |
| Life and pension insurance | 259,745,144 | 237,886,673 | 237,633,936 | 109 | 100 | 20.2% |
| Total | 1,285,198,148 | 1,173,054,829 | 1,127,688,147 | 110 | 104 | 100.0% |
| Insurance class | Gross written premium 2021 | Gross written premium 2020 | Gross written premium 2019 | Index 2021/2020 | Index 2020/2019 | Share 2021 |
|---|---|---|---|---|---|---|
| Accident insurance | 25,235,448 | 25,696,568 | 26,948,216 | 98 | 95 | 3.2% |
| Health insurance | 787,154 | 926,557 | 728,634 | 85 | 127 | 0.1% |
| Comprehensive car insurance | 129,298,413 | 127,536,357 | 124,555,111 | 101 | 102 | 16.3% |
| Real property insurance | 225,822,878 | 188,545,816 | 171,195,183 | 120 | 110 | 28.4% |
| Motor liability insurance | 109,621,258 | 106,754,958 | 102,352,357 | 103 | 104 | 13.8% |
| General liability insurance | 42,719,369 | 38,619,888 | 39,134,048 | 111 | 99 | 5.4% |
| Credit insurance | 21,883,871 | 19,137,654 | 22,962,440 | 114 | 83 | 2.8% |
| Other non-life insurance | 50,641,101 | 37,569,379 | 34,351,972 | 135 | 109 | 6.4% |
| Non-life insurance | 606,009,492 | 544,787,177 | 522,227,961 | 111 | 104 | 76.3% |
| Life insurance | 79,238,943 | 79,466,230 | 82,300,599 | 100 | 97 | 10.0% |
| Unit-linked life insurance | 88,785,604 | 76,121,938 | 79,947,507 | 117 | 95 | 11.2% |
| Capital redemption insurance | 20,316,064 | 18,880,523 | 17,655,904 | 108 | 107 | 2.6% |
| Life and pension insurance | 188,340,611 | 174,468,691 | 179,904,010 | 108 | 97 | 23.7% |
| Total | 794,350,103 | 719,255,868 | 702,131,971 | 110 | 102 | 100.0% |
Pozavarovalnica Triglav Re booked a total of EUR 202.3 million in gross written reinsurance premium, up by 12% relative to 2020. It recorded the highest growth in re and natural disaster insurance, goods in transit insurance in transactions outside the Group, general liability insurance and motor vehicle liability insurance in transactions within the Group.
| Insurance company | Non-life | Life and pensions | Total | Index | Share |
|---|---|---|---|---|---|
| Zavarovalnica Triglav* | 252,725,830 | 156,142,551 | 408,868,381 | 98 | 57.8% |
| Triglav, Zdravstvena zavarovalnica | 157,639,914 | 157,639,914 | 110 | 22.3% | |
| Triglav, pokojninska družba | 17,436,165 | 17,436,165 | 0 | 2.5% | |
| Triglav Osiguranje, Zagreb | 43,175,810 | 7,134,797 | 50,310,607 | 132 | 7.1% |
| Triglav Osiguranje, Belgrade | 23,021,290 | 5,088,264 | 28,109,554 | 111 | 4.0% |
| Lovćen Osiguranje, Podgorica | 14,990,913 | 14,990,913 | 108 | 2.1% | |
| Triglav Osiguranje, Sarajevo | 8,796,123 | 4,421,921 | 13,218,044 | 96 | 1.9% |
| Triglav Osiguranje, Banja Luka | 3,287,553 | 3,287,553 | 205 | 0.5% | |
| Triglav Osiguruvanje, Skopje | 9,886,955 | 9,886,955 | 103 | 1.4% | |
| Lovćen životna osiguranje, Podgorica | 3,710,611 | 3,710,611 | 0 | 0.5% | |
| Triglav Osiguruvanje Život, Skopje | 378,727 | 378,727 | 0 | 0.1% | |
| Total | 513,524,388 | 194,313,036 | 707,837,424 | 105 | 100.0% |
| Pozavarovalnica Triglav | 88,241,310 | 88,241,310 | 116 | ||
| Consolidation eliminations | -50,859,510 | -8,639,174 | -59,498,684 | 123 | 125 |
| Total - consolidated | 550,906,188 | 185,673,862 | 736,580,050 | 105 | 106 |
Consolidated gross claims paid of the Triglav Group in the amount of EUR 736.6 million were 6% higher. They increased in all insurance segments. In the largest segment, i.e. non-life insurance, gross claims paid amounted to EUR 393.3 million, up by 3%. In the health insurance segment, they increased by 10% to EUR 157.7 million. In the life and pension insurance segment, growth was 7%, with claims paid amounting to EUR 185.7 million. Gross claims paid include claim handling expenses less income from collected subrogation receivables.
Non-consolidated gross claims paid of the Group insurance companies (excluding Pozavarovalnica Triglav Re) were also higher, totaling EUR 707.8 million, up by 6% relative to the preceding year. Gross claims paid grew in all insurance companies, except Zavarovalnica Triglav, where they remained at approximately the same level as last year (index 100). The highest growth was recorded at Triglav Osiguranje, Banja Luka (index 205), followed by Triglav Osiguranje Život, Skopje (index 167), Triglav, pokojninska družba (index 139), Triglav Osiguranje, Zagreb (index 131) and Lovćen životna osiguranje (index 118).
Non-consolidated gross claims paid in non-life insurance amounted to EUR 513.5 million, an increase of 5% compared to the preceding year. Some major CAT events also incurred, which is described in greater detail in Section 7.2 Environmental impact on the Triglav Group’s operations.
The movement of gross claims paid by insurance class is presented below. The increase in claims was characteristic of most insurance classes, with the exception of general liability insurance and credit insurance, which recorded a decline. Gross claims paid in comprehensive car insurance remained at approximately the same level as the year before.
The majority (EUR 157.6 million) was accounted for by gross claims paid by Triglav, Zdravstvena zavarovalnica. Their 10% growth primarily resulted from the lack of availability of healthcare services due to the pandemic last year. The majority of the remaining insurance companies selling these insurance products also recorded a high growth in gross claims paid. Equalisation scheme expenses declined by 9% to EUR 7.2 million.
Gross claims paid in motor vehicle liability insurance totalled EUR 96.2 million, a 2% increase relative to the year before. They represented 13.6% of the Group’s total gross claims paid. Growth was recorded by Triglav Osiguranje, Banja Luka, Lovćen Osiguranje, Triglav Osiguranje, Belgrade and Triglav Osiguranje, Zagreb. Claims paid by these insurance companies increased mainly due to a higher number of reported or settled claims, at Triglav Osiguranje, Banja Luka also due to the payment of a large claim. Gross claims paid by the parent company remained at approximately the same level as in 2020 (index 100), while those at other insurance companies fell.
In real property insurance, gross claims paid increased by 7% compared to the preceding year. They amounted to EUR 95.5 million and accounted for 13.5% of total gross claims paid. Insurance companies recorded high growth: growth at Triglav Osiguranje, Zagreb resulted from growth in claim payouts due to earthquakes in 2020 and large payouts in animal insurance; at Triglav Osiguranje, Belgrade, growth was a result of payouts of two large claims due to fire and a higher number of reported claims in other damage to property insurance due to the larger size of the portfolio; at Triglav Osiguranje, Banja Luka, a large claim was paid in fire and natural disaster insurance, while at Lovćen Osiguranje the number of reported claims and the payout of large claims increased. Gross claims paid by the parent company, representing 68% of real property insurance claims, decreased by 4% predominantly due to a lower number of reported claims resulting from major CAT events.
Gross claims paid in comprehensive car insurance of EUR 92.6 million remained at approximately the same level as the year before (index 100), representing 13.1% of the Group’s total gross claims paid. Due to the smaller number of reported claims, their decline was recorded by the parent company and Triglav Osiguruvanje, Skopje. At the Serbian insurance company, gross claims paid remained at approximately the same level as in the preceding year, while the remaining insurance companies recorded growth due to the payment of large individual claims and higher population mobility.
Gross claims paid from accident insurance increased by 10% to EUR 22.7 million. Their growth was mostly influenced by higher amounts of claims at Zavarovalnica Triglav due to larger payments in group and individual accident insurance. Due to the pandemic, the 2020 reviews by medical examiners were postponed to 2021, which led to higher disability payments. Triglav Osiguruvanje, Skopje also saw a high growth in claims resulting from higher payments due to death, and Lovćen Osiguranje due to a significant increase in payments related to accident insurance for pensioners.
Gross claims paid in general liability insurance amounted to EUR 13.3 million, down by 27% compared to the year before. This decrease was primarily a result of a 33% decline in gross claims paid by the parent company due to the payment of a large claim in directors and officers liability insurance and lower payments related to general liability insurance. Gross claims paid by the parent company represented 81% of the Group’s total gross claims paid in this insurance class. The remaining insurance companies recorded growth in gross claims paid.
decreased by 21% to EUR 4.8 million. Zav arov alnica T ri glav, accounting for the majority of claims in this insurance class (84%), experienced a high decline of 14%. The decline in claims paid by the parent company resulted mainly from lower payments in consumer loan insurance and overdraft insurance due to a smaller number of reported claims. Triglav Osiguranje, Belgrade recorded a significant increase in claims. The 68% decrease was primarily the result of the payment of a large claim in the past year. Triglav Osiguranje, Zagreb recorded 43% lower gross claims paid.
Gross claims paid in other non-life insurance rose by 22% and amounted to EUR 25.3 million. The parent company, which accounts for 79% of other non-life insurance claims, recorded 25% higher gross claims paid. The growth is mainly due to a larger volume of car assistance claims (more claims and rising prices of petroleum products), miscellaneous financial loss insurance (an out-of-court settlement for damage caused in 2017 as a result of business interruption due to fire) and railway insurance. In addition, strong growth was recorded by Triglav Osiguranje, Zagreb (a significant increase in marine insurance claims due to a larger portfolio) and Triglav Osiguruvanje, Skopje (payment of damages based on a court decision related to liability insurance for the use of aircraft).
Non-consolidated gross claims paid in the life and pension insurance group grew by 8% to EUR 194.3 million. Their share in total non-consolidated claims paid increased to 27.5% (2020: 26.8%).
related payouts of mathematical provisions and payouts due to maturity. The 4% growth in gross claims paid by the parent company (a 84% share in total gross claims paid) predominantly resulted from higher payouts due to maturity.
Gross claims paid in unit-linked life insurance rose by 12% to EUR 70.4 million. High growth was recorded by Triglav Osiguranje, Zagreb and Triglav, pokojninska družba. In the Croatian insurance company, the 53% growth was influenced by higher payments due to maturity, while Triglav, pokojninska družba saw a 39% rise due to an increase in retirements and related transfers to annuity funds and due to increased transfers to other pension insurance providers.
The parent company recorded a 4% increase in claims paid, mainly as a result of higher payments due to surrenders and advances.
Insurance (supplemental voluntary pension insurance) decreased by 5%, primarily as a result of lower payouts due to withdrawals from insurance contracts and retirements at the parent company.
| Insurance class | Gross claims paid | Index | Share | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|---|---|
| Accident insurance | 22,740,003 | 110 | 3.2% | 20,727,007 | 23,673,861 | 88 | 3.2% | |
| Health insurance | 163,043,285 | 110 | 23.0% | 147,911,003 | 143,785,330 | 103 | 23.0% | |
| Comprehensive car insurance | 92,636,703 | 100 | 13.1% | 92,882,937 | 98,799,095 | 94 | 13.1% | |
| Real property insurance | 95,514,391 | 107 | 13.5% | 89,057,583 | 91,798,667 | 97 | 13.5% | |
| Motor liability insurance | 96,226,864 | 102 | 13.6% | 94,229,264 | 95,003,851 | 99 | 13.6% | |
| General liability insurance | 13,276,964 | 73 | 1.9% | 18,212,366 | 17,589,035 | 104 | 1.9% | |
| Credit insurance | 4,832,669 | 79 | 0.7% | 6,079,260 | 6,012,228 | 101 | 0.7% | |
| Other non-life insurance | 25,253,513 | 122 | 3.6% | 20,706,410 | 21,731,247 | 95 | 3.6% | |
| Non-life insurance | 513,524,392 | 105 | 72.5% | 489,805,830 | 498,393,314 | 98 | 72.5% | |
| Life insurance | 119,439,876 | 107 | 16.9% | 111,595,230 | 109,763,192 | 102 | 16.9% | |
| Unit-linked life insurance* | 70,447,230 | 112 | 10.0% | 62,944,570 | 71,885,180 | 88 | 10.0% | |
| Capital redemption insurance | 4,425,926 | 95 | 0.6% | 4,656,031 | 5,050,338 | 92 | 0.6% | |
| Life and pension insurance | 194,313,032 | 108 | 27.5% | 179,195,831 | 186,698,710 | 96 | 27.5% | |
| Total | 707,837,424 | 106 | 100.0% | 669,001,661 | 685,092,024 | 98 | 100.0% |
| Insurance class | Gross claims paid | Index | Share | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|---|---|
| Accident insurance | 12,755,919 | 113 | 3.1% | 11,259,216 | 13,732,622 | 82 | 3.1% | |
| Health insurance | 232,436 | 55 | 0.1% | 425,255 | 252,787 | 168 | 0.1% | |
| Comprehensive car insurance | 76,216,318 | 98 | 18.6% | 77,548,159 | 81,388,346 | 95 | 18.6% | |
| Real property insurance | 64,751,034 | 96 | 15.8% | 67,698,027 | 68,522,847 | 99 | 15.8% | |
| Motor liability insurance | 64,001,235 | 100 | 15.7% | 64,244,617 | 63,861,193 | 101 | 15.7% | |
| General liability insurance | 10,761,352 | 67 | 2.6% | 16,143,731 | 15,188,764 | 106 | 2.6% | |
| Credit insurance | 4,045,904 | 86 | 1.0% | 4,709,310 | 5,217,685 | 90 | 1.0% | |
| Other non-life insurance | 19,961,633 | 125 | 4.9% | 16,009,493 | 17,220,406 | 93 | 4.9% | |
| Non-life insurance | 252,725,831 | 98 | 61.8% | 258,037,808 | 265,384,650 | 97 | 61.8% | |
| Life insurance | 100,677,756 | 104 | 24.6% | 96,431,879 | 96,566,196 | 100 | 24.6% | |
| Unit-linked life insurance | 51,038,868 | 104 | 12.5% | 49,152,423 | 58,203,197 | 84 | 12.5% | |
| Capital redemption insurance | 4,425,926 | 95 | 1.1% | 4,656,031 | 5,050,338 | 92 | 1.1% | |
| Life and pension insurance | 156,142,550 | 104 | 38.2% | 150,240,333 | 159,819,731 | 94 | 38.2% | |
| Total | 408,868,381 | 100 | 100.0% | 408,278,141 | 425,204,381 | 96 | 100.0% |
Total consolidated gross operating expenses of the Triglav Group amounted to EUR 333.4 million, up by 9%. Expenses from insurance operations grew by 10% to EUR 299.8 million. Due to higher volume of business and lower operating expenses due to the impact of the pandemic in 2020, the highest growth was recorded mainly in acquisition costs, costs of representation, advertising and trade shows, and labour costs. The share of operating expenses of insurance operations in gross written premium rose by 0.1 percentage point to 22.2%. Operating expenses increased in all insurance segments; by 14% in the life and pension insurance segment (EUR 45.2 million), by 10% in the non-life insurance segment (EUR 238.8 million) and by 7% in the health insurance segment (EUR 15.8 million). Expenses from non-insurance operations fell by 2% and totalled EUR 33.5 million.
Acquisition costs (fees and commissions) rose by 23% to EUR 66.4 million, predominantly as a result of their increase at Zavarovalnica Triglav, Triglav Osiguranje, Zagreb, Triglav Osiguranje, Belgrade and Triglav Osiguranje, Sarajevo. Increased acquisition costs mainly resulted from the higher number of underwritten insurance policies and the increased volume of written premium from insurance policies taken out via external sales channels (contracted points of sale, brokers, agencies and banks). In contrast, a large decline in acquisition costs was recorded at Triglav, Zdravstvena zavarovalnica due to the change in the rewarding scheme.
Depreciation costs rose to EUR 22.6 million (index 103). Their increase resulted from higher amortisation costs of intangible fixed assets at the parent company, higher amortisation at Triglav Osiguranje, Belgrade due to the implementation of IFRS 16 – Leases and higher depreciation at Triglav, Zdravstvena Zavarovalnica due to investments in hardware and software.
At 47.2%, labour costs accounted for the largest portion of total expenses and amounted to EUR 166.2 million, up by 6% compared to the year before. This increase is mainly a result of the higher number of employees at Triglav, Zdravstvena zavarovalnica and Triglav Osiguruvanje Život, Skopje, as well as higher labour costs at Zavarovalnica Triglav. At the parent company, the latter were mainly influenced by an increase in employees’ basic salaries and higher payments to insurance agents due to increased sale of insurance products as well as additional payments due to taking out insurance remotely. Costs of services provided by natural persons other than sole proprietors (contract work and services of the student work service) rose by 27%. They amounted to EUR 1.5 million and represented only 0.4% of total expenses.
Other operating expenses increased by 8% to EUR 95.3 million. Among them, the highest growth was recorded by costs of representation, advertising and trade shows (higher costs of advertising and organisation of events and sponsorships at the parent company and higher costs of advertising at Triglav Osiguranje, Belgrade), costs of payment transactions and banking services (higher costs of distribution at Triglav Skladi), costs of intellectual and personal services (higher costs of advisory services at the parent company and higher costs at Triglav, pokojninska družba for the joint contact centre services, insurance processing and services) and rent and lease costs (especially higher costs of leasing computer equipment and services at the parent company).
Gross operating expenses of the Triglav Group by nature
| Operating expenses by nature | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | Share |
|---|---|---|---|---|---|---|
| Acquisition costs (fees and charges) | 66,422,411 | 54,124,019 | 56,219,931 | 123 | 96 | 18.9% |
| Costs of goods sold | 130,008 | 11,179 | 48,845 | 1,163 | 23 | 0.0% |
| Depreciation of operating assets | 22,591,303 | 22,001,097 | 19,694,948 | 103 | 112 | 6.4% | |||
|---|---|---|---|---|---|---|---|---|---|
| Labour costs | 166,208,923 | 157,524,456 | 154,621,686 | 106 | 102 | 47.2% | |||
| - wages and salaries | 115,443,711 | 110,229,227 | 107,324,972 | 105 | 103 | 32.8% | |||
| - social security and pension insurance costs | 26,163,907 | 24,559,378 | 24,289,499 | 107 | 101 | 7.4% | |||
| - other labour costs | 24,601,305 | 22,735,851 | 23,007,215 | 108 | 99 | 7.0% | |||
| Costs of services provided by natural persons other than SPs, including related taxes | 1,535,695 | 1,208,769 | 1,317,788 | 127 | 92 | 0.4% | |||
| Other operating expenses | 95,345,836 | 87,942,602 | 90,018,718 | 108 | 98 | 27.1% | |||
| - costs of entertainment, advertising, trade shows | 20,704,813 | 17,181,444 | 19,394,377 | 121 | 89 | 5.9% | |||
| - costs of material and energy | 7,916,541 | 8,426,457 | 8,261,184 | 94 | 102 | 2.2% | |||
| - maintenance costs | 15,368,460 | 15,181,848 | 15,575,036 | 101 | 97 | 4.4% | |||
| - reimbursement of labour-related costs | 3,456,616 | 3,202,363 | 5,690,278 | 108 | 56 | 1.0% | |||
| - costs of intellectual and personal services | 6,724,017 | 5,560,110 | 5,781,460 | 121 | 96 | 1.9% | |||
| - non-income related costs, excluding insurance | 3,490,300 | 3,241,068 | 3,391,165 | 108 | 96 | 1.0% | |||
| - costs of transport and communication services | 5,510,075 | 5,360,314 | 5,584,949 | 103 | 96 | 1.6% | |||
| - costs for insurance premiums | 1,132,762 | 1,159,846 | 1,121,622 | 98 | 103 | 0.3% | |||
| - payment transaction costs and banking services | 11,921,424 | 9,495,754 | 8,470,561 | 126 | 112 | 3.4% | |||
| - rents | 5,683,599 | 4,847,443 | 4,062,029 | 117 | 119 | 1.6% | |||
| - costs of professional training services | 1,303,829 | 1,099,790 | 1,354,981 | 119 | 81 | 0.4% | |||
| - other costs of services | 12,124,181 | 13,183,530 | 11,310,828 | 92 | 117 | 3.4% | |||
| - long-term employee benefits | 9,219 | 2,635 | 20,248 | 350 | 13 | 0.0% | |||
| Total | 352,234,176 | 322,812,122 | 321,921,916 | 109 | 100 | 100.0% | |||
| Consolidation eliminations | -18,842,729 | -16,065,703 | -16,653,191 | 117 | 96 | ||||
| Total consolidated | 333,391,447 | 306,746,419 | 305,268,725 | 109 | 100 |
| Operating expenses by nature | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | Share |
|---|---|---|---|---|---|---|
| Acquisition costs (fees and charges) | 34,375,142 | 28,550,727 | 28,759,114 | 120 | 99 | 17.6% |
| Depreciation of operating assets | 13,173,274 | 12,145,270 | 11,167,744 | 108 | 109 | 6.8% |
| Labour costs | 106,607,468 | 101,313,635 | 99,873,831 | 105 | 101 | 54.7% |
| - wages and salaries | 75,208,360 | 72,334,018 | 70,238,081 | 104 | 103 | 38.6% |
| - social security and pension insurance costs | 12,778,998 | 12,000,752 | 11,837,017 | 106 | 101 | 6.6% |
| - other labour costs | 18,620,110 | 16,978,865 | 17,798,733 | 110 | 95 | 9.5% |
| Costs of services provided by natural persons other than SPs, including related taxes | 309,753 | 289,970 | 349,916 | 107 | 83 | 0.2% |
| Other operating expenses | 40,582,438 | 37,651,247 | 40,343,368 | 108 | 93 | 20.8% |
| - costs of entertainment, advertising, trade shows | 8,647,852 | 7,607,576 | 8,598,847 | 114 | 88 | 4.4% |
| - costs of material and energy | 3,443,255 | 3,782,544 | 3,425,880 | 91 | 110 | 1.8% |
| - maintenance costs | 8,699,049 | 8,823,036 | 9,627,759 | 99 | 92 | 4.5% |
| - reimbursement of labour-related costs | 2,426,737 | 2,175,475 | 3,360,635 | 112 | 65 | 1.2% |
| - costs of intellectual and personal services | 2,754,338 | 2,072,025 | 1,963,379 | 133 | 106 | 1.4% |
| - non-income related costs, excluding insurance | 1,457,614 | 1,380,668 | 1,628,366 | 106 | 85 | 0.7% |
| - costs of transport and communication services | 2,929,987 | 2,978,697 | 3,072,649 | 98 | 97 | 1.5% |
| - costs for insurance premiums | 305,143 | 379,318 | 327,304 | 80 | 116 | 0.2% |
The Triglav Group equalised 84% of the risks within its own equalisation capacities. The Group was able to equalise risks that exceeded its own equalisation capacities by reinsurance and, to a lesser extent, through other means.
| Payment transaction costs and banking services | 1,135,155 | 1,218,983 | 1,698,171 | 93 | 72 | 0.6% |
|---|---|---|---|---|---|---|
| Rents | 3,688,633 | 3,024,699 | 2,216,058 | 122 | 136 | 1.9% |
| Costs of professional training services | 895,727 | 764,945 | 902,200 | 117 | 85 | 0.5% |
| Other costs of services | 4,198,948 | 3,443,281 | 3,522,120 | 122 | 98 | 2.2% |
| Total | 195,048,075 | 179,950,849 | 180,493,973 | 108 | 100 | 100.0% |
Claims were covered with the current annual inow of technical premium by insurance class and the insurance technical provisions formed. Gross insurance technical provisions ensure not only well-balanced operations but also the long-term safety of policyholders. As at 31 December 2021, the Group allocated EUR 3,198.7 million to gross insurance technical provisions, up by 5%. The volume of gross insurance technical provisions increased in all insurance segments: by 7% in non-life insurance, by 4% in life insurance and by 23% in health insurance. Zavarovalnica Triglav allocated EUR 2,280.5 million to gross insurance technical provisions, up by 4% relative to 2021.
| Gross insurance technical provisions | Index | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|
| Unearned premium | 370,043,725 | 344,760,927 | 332,510,935 | 107 | 104 | |
| Mathematical provisions | 2,054,917,059 | 1,967,008,673 | 1,889,382,583 | 104 | 104 | |
| Claims provisions | 694,498,311 | 645,331,168 | 615,398,744 | 108 | 105 | |
| Provisions for bonuses and discounts | 27,464,185 | 28,195,354 | 19,683,771 | 97 | 143 | |
| Other insurance technical provisions | 51,748,503 | 47,917,732 | 21,894,138 | 108 | 219 | |
| Total | 3,198,671,783 | 3,033,213,854 | 2,878,870,171 | 105 | 105 |
| Gross insurance technical provisions | Index | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|
| Unearned premium | 246,017,850 | 235,190,816 | 232,791,056 | 105 | 101 | |
| Mathematical provisions | 1,548,454,207 | 1,490,283,181 | 1,455,824,397 | 104 | 102 | |
| Claims provisions | 446,567,255 | 430,259,621 | 428,320,763 | 104 | 100 | |
| Provisions for bonuses and discounts | 23,724,069 | 23,837,107 | 19,065,148 | 100 | 125 | |
| Other insurance technical provisions | 15,744,857 | 19,470,754 | 13,012,868 | 81 | 150 | |
| Total | 2,280,508,238 | 2,199,041,479 | 2,149,014,232 | 104 | 102 |
The Triglav Group continues to pursue a relatively conservative investment policy in order to achieve an adequate return on its investment portfolio, with an emphasis on the security and liquidity of investments. In its investing activities, the Group pursues the goal of achieving a high credit rating of the entire portfolio and incorporates environmental, social and governance (ESG) factors in its investment process.
In 2021, the portfolio structure did not significantly change, but adjustments were made to some shares of individual asset classes. The Group’s financial investments including investment property and investments in associates totalled EUR 3,668.5 million or 5% more compared to the 2020 year-end. Their share in total assets of the Group was down by 0.6 percentage point to 83.9%.
| Financial investments | Index | Share | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|
| Investment property | 95 | 2.0% | 75,110,973 | 78,977,800 |
| Shares in associates | 128 | 1.0% | 36,031,343 | 28,237,714 |
| Shares and other floating-rate |
| securities | 330,960,660 | 220,367,991 | 150 | 9.0% | 6.3% | |||
|---|---|---|---|---|---|---|---|---|
| Debt and other fixed return securities | 2,512,569,818 | 2,572,533,950 | 98 | 68.5% | 73.6% | |||
| Loans given | 4,525,184 | 4,218,279 | 107 | 0.1% | 0.1% | |||
| Deposits with banks | 70,472,827 | 72,474,217 | 97 | 1.9% | 2.1% | |||
| Other financial investments | 5,810,984 | 6,462,139 | 90 | 0.2% | 0.2% | |||
| Financial investments of reinsurance companies in reinsurance contracts with cedents | 13,340,360 | 11,210,682 | 119 | 0.4% | 0.3% | |||
| Derivatives | 20,317 | 113,301 | 18 | 0.0% | 0.0% | |||
| Unit-linked insurance contract investments | 619,617,488 | 501,808,980 | 123 | 16.9% | 14.4% | |||
| Total | 3,668,459,954 | 3,496,405,053 | 105 | 100.0% | 100.0% |
Debt and other fixed return securities: 68.5%
Unit-linked insurance contract investments: 16.9%
Shares and other floating-rate securities: 9.0%
Investment property: 2.0%
Deposits with banks: 1.9%
Shares in associates: 1.0%
Other financial investments: 0.6%
The bulk of the investment portfolio, 68.5%, is represented by bonds invested in developed markets, most of which have a high credit rating. Compared to the 2020 year-end, the investment portfolio shrunk by 5.1 percentage points and its value decreased by 2% to EUR 2,512.6 million, which is primarily a result of the negative bond yield due to rising interest rates in this period and, to a lesser extent, due to tactical portfolio adjustment.
In contrast, the share of equity investments in the investment portfolio grew by 2.7 percentage points to 9.0% and the share of unit-linked life insurance contract investments went up by 2.5 percentage points to 16.9%. In addition, the value of both asset classes increased due to the rise in share prices. The volume of equity investments thus increased by 50% to EUR 331.0 million and the volume of unit-linked life insurance contract investments by 23% to EUR 619.6 million. The majority of the latter is accounted for by assets invested in mutual funds of the policyholders’ choice and mostly in funds managed by Triglav Skladi.
In other asset classes, the volume of deposits with banks and investment property decreased slightly, whereas the volume of investments in associates somewhat increased; there were no other significant changes in the reporting period. In 2021, the Group did not lend securities from its portfolios, nor did it receive other securities as collateral for such loans.
The detailed structure of the Group’s bond and equity portfolio is presented below, and the data for the Company are presented at the end of this section.
23 SASB: FN-AC-410a.1 |
24 SASB: FN-IN-550a.2
| Credit rating | 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | Index | Share |
|---|---|---|---|---|---|
| AAA | 438,921,752 | 463,012,284 | 95 | 17.5% | 18.0% |
| AA | 376,763,744 | 383,681,511 | 98 | 15.0% | 14.9% |
| A | 677,949,441 | 729,748,691 | 93 | 27.0% | 28.4% |
| BBB | 789,294,818 | 728,788,550 | 108 | 31.4% | 28.3% |
| Below BBB | 185,667,718 | 200,940,476 | 92 | 7.4% | 7.8% |
| Not rated | 43,972,345 | 66,362,438 | 66 | 1.8% | 2.6% |
| Total | 2,512,569,818 | 2,572,533,950 | 98 | 100.0% | 100.0% |
| Issuer sector | 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | Index | Share |
|---|---|---|---|---|---|
| EMU bonds | 1,204,550,177 | 1,313,398,957 | 92 | 47.9% | 51.1% |
| Finance | 451,913,446 | 462,665,245 | 98 | 18.0% | 18.0% |
| Bonds of other countries | 227,890,193 | 203,605,284 | 112 | 9.1% | 7.9% |
| EU bonds (excluding EMU) | 204,852,100 | 165,825,871 | 124 | 8.2% | 6.4% |
|---|---|---|---|---|---|
| Non-cyclical sectors | 106,676,738 | 97,441,635 | 109 | 4.2% | 3.8% |
| Public goods | 74,478,500 | 74,216,355 | 100 | 3.0% | 2.9% |
| Communications | 47,049,094 | 68,905,946 | 68 | 1.9% | 2.7% |
| Cyclical sectors | 46,995,262 | 49,437,417 | 95 | 1.9% | 1.9% |
| Technology | 39,255,888 | 29,837,298 | 132 | 1.6% | 1.2% |
| Industry | 37,525,233 | 36,803,162 | 102 | 1.5% | 1.4% |
| Energy sector | 36,662,200 | 32,799,111 | 112 | 1.5% | 1.3% |
| Raw materials | 34,720,987 | 37,597,670 | 92 | 1.4% | 1.5% |
| Total | 2,512,569,818 | 2,572,533,950 | 98 | 100.0% | 100.0% |
| Issuer sector | 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|---|
| Government | 1,637,292,470 | 1,682,830,112 | 97 | 65.2% | 65.4% |
| Financial | 450,896,480 | 461,605,954 | 98 | 17.9% | 17.9% |
| Corporate | 423,363,902 | 427,038,594 | 99 | 16.8% | 16.6% |
| Structured | 1,016,966 | 1,059,291 | 96 | 0.0% | 0.0% |
| Total | 2,512,569,818 | 2,572,533,950 | 98 | 100.0% | 100.0% |
| Country of issuer | 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|---|
| Germany | 371,741,005 | 399,195,893 | 93 | 14.8% | 15.5% |
| Slovenia | 312,387,021 | 394,525,822 | 79 | 12.4% | 15.3% |
| France | 202,916,739 | 191,067,434 | 106 | 8.1% | 7.4% |
| Spain | 154,859,010 | 139,353,731 | 111 | 6.2% | 5.4% |
| International financial institutions | 153,800,111 | 106,856,495 | 144 | 6.1% | 4.2% |
| Italy | 133,591,273 | 123,487,125 | 108 | 5.3% | 4.8% |
| USA | 132,660,828 | 123,650,851 | 107 | 5.3% | 4.8% |
| Croatia | 113,080,581 | 106,124,399 | 107 | 4.5% | 4.1% |
| Netherlands | 90,155,239 | 117,712,265 | 77 | 3.6% | 4.6% |
| Austria | 66,664,263 | 85,172,491 | 78 | 2.7% | 3.3% |
| Other | 780,713,748 | 785,387,446 | 99 | 31.1% | 30.5% |
| Total | 2,512,569,818 | 2,572,533,950 | 98 | 100.0% | 100.0% |
Unit-linked life insurance contract investments data are excluded.
The shares of bonds in the Group’s bond portfolio did not change significantly in terms of issuer sector. Government bonds continue to account for the bulk (65.2%), while the rest of the portfolio is represented by financial and corporate bonds in a balanced manner. Presented below is additional information on the bond portfolio structure by issuer sector/activity.
In terms of issuer country, the majority of the portfolio is accounted for by debt securities of issuers from the countries with a high credit rating, which ensures adequate security and liquidity. Certain changes in exposure to individual countries are a result of price fluctuations and tactical adjustments of some positions.
The Company incorporates environmental, social and governance (ESG) factors in its investment process. It pursues the social corporate responsibility guidelines developed by the Organisation for Economic Co-operation and Development (OECD) and the principles for responsible investment, supported by the United Nations. In March 2021, in accordance with the requirements of the Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector, the Company defined the sustainability aspect of its investment policy, which is available at https://www.triglav.eu/en/sustainable-development/sustainable-business. In line with the latter and the Group’s strategic ambitions (see Section 4 Triglav Group strategy and plans), the Group defined how to include sustainability factors in the management of its investments, the strategy of investing in sustainable asset classes (e.g. green bonds, social impact bonds and sustainable bonds) and to actively exercise its management rights when making decisions related to sustainable development with those issuers in its portfolio where this is possible.
The Group’s sustainable fixed-income investments are shown in the table below. Compared to 2020, their volume has almost doubled and reached EUR 204.5 million. Their share in the bond portfolio stands at 8.1% (compared to 4.1% in 2020).
| Year | Volume (EUR million) | Share in bond portfolio (%) |
|---|---|---|
| 2021 | 204.5 | 8.1 |
| 2020 | Approximately 102.25 | 4.1 |
| 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|---|
| Social impact bonds* | 83,630,721 | 33,278,595 | 251 | 3.3% | 1.3% |
| Green bonds** | 104,433,167 | 67,424,385 | 155 | 4.2% | 2.6% |
| Sustainable bonds*** | 16,448,265 | 3,629,090 | 453 | 0.7% | 0.1% |
| Total ESG bonds | 204,512,153 | 104,332,071 | 196 | 8.1% | 4.1% |
| Equity Investment Type | 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|---|
| Shares | 128,582,339 | 91,531,483 | 140 | 35.0% | 36.8% |
| Equity funds | 85,330,024 | 58,121,021 | 147 | 23.3% | 23.4% |
| Bond funds | 62,836,072 | 30,288,800 | 207 | 17.1% | 12.2% |
| Money market funds | 4,177,739 | 3,436,410 | 122 | 1.1% | 1.4% |
| Other funds | 86,065,829 | 65,227,991 | 132 | 23.5% | 26.2% |
| Total | 366,992,003 | 248,605,705 | 148 | 100.0% | 100.0% |
| Geographic Area | 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|---|
| Slovenia | 103,490,296 | 80,365,862 | 129 | 28.2% | 32.3% |
| Developed markets | 244,542,137 | 150,493,047 | 162 | 66.6% | 60.5% |
| Developing markets | 13,588,353 | 13,244,477 | 103 | 3.7% | 5.3% |
| Balkans | 5,371,218 | 4,502,320 | 119 | 1.5% | 1.8% |
| Total | 366,992,003 | 248,605,705 | 148 | 100.0% | 100.0% |
| Issuer Sector | 31 Dec. 2021 | 31 Dec. 2020 | 2021/2020 | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|---|
| Highly diversified activities | 222,711,485 | 150,241,659 | 148 | 60.7% | 60.4% |
| Non-cyclical sectors | 75,540,556 | 58,681,613 | 129 | 20.6% | 23.6% |
| Finance | 25,015,182 | 18,231,869 | 137 | 6.8% | 7.3% |
| Technology | 12,932,690 | 1,221,316 | 1,059 | 3.5% | 0.5% |
| Energy sector | 12,679,131 | 3.5% | 0.0% | ||
| Cyclical sectors | 8,477,152 | 6,113,712 | 139 | 2.3% | 2.5% |
| Public goods | 3,428,188 | 30 | 0.9% | 4.5% | |
| Industry | 3,399,847 | 2,245,004 | 151 | 0.9% | 0.9% |
| Communications | 2,210,403 | 424,418 | 521 | 0.6% | 0.2% |
| Raw materials | 597,371 | 200,535 | 298 | 0.2% | 0.1% |
| Total | 366,992,003 | 248,605,705 | 148 | 100.0% | 100.0% |
** 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.
Equity investments, which comprise shares and other variable-income securities and investments in associates, represent 10.0% of the Group’s total portfolio (up by 2.9 percentage points compared to the 2020 year-end). Their value increased by 48% to EUR 367.0 million predominantly due to share price growth. Equity investments also include the category other funds, which comprises mostly alternative funds, among which the alternative fund managed by the associate Triglav holds a significant share.
Equity investments of the Triglav Group by issuer sector/activity in 2021 and 2020.
27 SASB: FN-IN-410a.2, FN-AC-410a.2 | 27 SASB: FN-IN-410a.1
At Zavarovalnica Triglav, financial investments, including investment property, amounted to EUR 2,725.5 million as at the 2021 year-end, up by 3%.
| Financial investments | Index | Share | 31 Dec 2021 | 31 Dec 2020 | 2021/2020 | 31 Dec 2021 | 31 Dec 2020 |
|---|---|---|---|---|---|---|---|
| Investment property | 43,840,055 | 44,451,276 | 99 | 1.6% | 1.7% | ||
| Investments in subsidiaries and associates | 173,618,679 | 163,675,415 | 106 | 6.4% | 6.2% | ||
| Shares and other floating rate securities | 204,009,208 | 113,586,570 | 180 | 7.5% | 4.3% | ||
| Debt and other fixed return securities | 1,736,539,693 | 1,837,372,253 | 95 | 63.7% | 69.8% | ||
| Loans given | 5,155,689 | 9,294,087 | 55 | 0.2% | 0.4% | ||
| Deposits with banks | 19,660,793 | 19,567,302 | 100 | 0.7% | 0.7% | ||
| Other financial investments | 3,278,363 | 3,654,860 | 90 | 0.1% | 0.1% | ||
| Derivatives | 20,317 | 113,301 | 18 | 0.0% | 0.0% | ||
| Unit-linked insurance contract investments | 539,417,972 | 442,292,488 | 122 | 19.8% | 16.8% | ||
| Total | 2,725,540,769 | 2,634,007,552 | 103 | 100.0% | 100.0% |
The Triglav Group invested EUR 5.6 million in property, plant and equipment and EUR 17.1 million in intangible assets (software and property rights). The parent company invested EUR 2.6 million in property, plant and equipment and EUR 15.4 million in intangible fixed assets. The value of own-use property is increased through active management and prudent investing in it, while making the best use of the existing capacity, increasing its functionality and achieving high standards that are in line with advanced technological and functional guidelines. Renovation works are carried out in accordance with the Group’s sustainable development guidelines, which include a better spatial use of the premises, improved energy efficiency and a lower carbon footprint.
Previous investments in digital channels in client service, IT equipment and employees’ skills and the implementation of new methods of working from home contributed to the rationalisation and optimisation of premises, which was accelerated not only by technological and IT investments but also by the epidemic.
In 2021, special attention was paid to measures designed to protect health and ensure the safe use of real property for employees, clients, tenants and other users. The energy and functional renovation of strategic real property, both for own use and investment, continued.
At Group level, minimum standards for flexible arrangement of workplace and points of sale were adopted, which comply with the international examples of good practice to modernise operations and make them more effective. Some business premises were already renovated based on these standards. In the coming years, these standards will be revised according to new findings and guidelines and as a result of changes in the method of working in the post-pandemic period.
IT support for real property management enables secure and complete record keeping, reporting and the implementation of various administration processes. In 2021, the software version was upgraded by including applications for investment management, cost management and energy accounting. The upgrades will be rolled out in 2022.
The Group’s real property portfolio continued to be improved by seizing good market opportunities. The value of real property, the excellent occupancy of investment property and its profitability were maintained, which is also a result of systematic investment in real property of strategic importance and the sale of non-strategic real property. In 2021, several strategically uninteresting real properties were sold (business premises, land, holiday facilities). The sales process of one of the most important real properties in the Company’s portfolio was completed, i.e. the development land “Linhartov dvor” in Bežigrad, owned by Triglav, Upravljanje nepremičnin. The positive effects of development and sale will be seen in 2022.
Asset management comprises the management of the parent company’s own insurance portfolios (assets backing liabilities and guarantee funds), saving of clients through the Group’s life and pension insurance companies, asset management by Triglav and the management of clients’ assets in mutual funds and discretionary mandates by Triglav Skladi. The value of assets under management of the Triglav Group as at 31 December 2021:
| own insurance portfolio: | EUR 3,048.8 million (index 102) |
|---|---|
| mutual funds and discretionary mandate assets at Triglav Skladi: | EUR 1,539.3 million (index 133) |
| investment management at Triglav: | EUR 91.7 million (index 168) |
Asset and investment fund management market capital markets were profitable above average in 2021, reflecting a strong economic recovery from the COVID-19 pandemic. The asset management market in the European industry (UCITS funds) recorded high net inflows – a total of EUR 670 billion by the end of October 2021. Inflows were evenly distributed over the months, indicating a relatively stable positive trend in capital markets. Half of net inflows was attributed to equity funds and the other half was divided between mixed and bond funds. Money market funds recorded net outflows of almost EUR 30 billion.
At the end of October 2021, the European investment fund industry (UCITS funds) managed EUR 13.6 trillion, of which 44% were equity funds, 25% bond funds, 19% mixed funds and around 10% were money market funds. The UCITS fund market is rather concentrated, managing more than 80% of all assets in European countries.
28 SASB: FN-AC-000.A
As at the 2021 year-end, a total of five management companies operated in Slovenia, which managed the net asset value of EUR 4.3 billion in 79 mutual funds, up by 34% relative to the year before. They recorded net inflows of EUR 483 million, of which EUR 309 million in equity funds, EUR 162 million in mixed funds and just over EUR 27 million in bond funds. As in Europe, money market funds in Slovenia recorded net outflows. As at 31 December 2021, Triglav Skladi held a 31.8% market share (vs. 32.9% in 2020) and is therefore one of the leading managers of assets in investment funds in Slovenia. More than 120 foreign management companies also sell their funds, mainly via banks.
The structure of assets managed by mutual funds did not change significantly over the last decade. About two-thirds of assets are in equity funds, a quarter in mixed funds and just over 5% in bond funds. Mutual fund assets per capita in Slovenia amounted to EUR 2,065 as at the end of September 2021.
A total of six companies provided discretionary mandate services, of which four were asset management companies. As at 31 December 2021, the latter managed EUR 1.9 billion in discretionary mandate assets, up by 46% relative to the year before. Triglav Skladi increased its market share in the discretionary mandate segment to 9.0% (vs. 7.5% in 2020).
Triglav Skladi is one of the main asset managers in Slovenia; its range of products and services includes the management and sale of mutual funds, discretionary mandate services and investment advisory services. All assets under management are under the custody of Skrbniška banka Nova KBM d.d. or NLB d.d. and under the supervision of the Securities Market Agency.
With respect to mutual funds, the company offers 18 different investment policies: conservative investments (two bond funds and a money market fund), moderately risky investments (flexible, mixed and defensive funds) and dynamic equity investments (equity funds). In as many as eight categories, the company has the largest fund among Slovenian mutual fund providers in terms of assets under management.
In addition to mutual funds, the company also offers six investment combinations as predefined structured mutual fund baskets, which correspond to the risk profiles of six different client segments.
As at 31 December 2021, the company managed the portfolio of 110,000 investors worth EUR 1.4 billion in mutual funds, which is 29% more than the year before. The value of net assets under management increased by EUR 124.8 million due to net inflows and by EUR 186.7 million due to the situation in capital markets. In the market of Bosnia and Herzegovina, Triglav Skladi holds a participating interest in PROF-IN asset management company, which obtained a license to manage open-ended mutual funds.
Triglav Skladi’s discretionary mandate assets amounted to EUR 167.2 million, an increase of EUR 71.6 million or 75% on the preceding year. Net inflows amounted to EUR 47.7 million, while the effect of capital markets increased their value to EUR 23.9 million.
Triglav Skladi also manages the unit-linked life insurance assets of the Triglav Group. For 14 years, it has been pursuing the Financial Objectives investment strategy, which enables clients to actively adjust their portfolios according to the lifecycle principle, and Active Investment Packages, which correspond to different client segments according to the risk profile. It also manages guarantee funds backing supplemental voluntary pension insurance in portfolios: Triglav Drzni, Triglav Zmerni, Delniški Skupni pokojninski sklad, Mešani Skupni pokojninski sklad and Obvezniški Skupni pokojninski sklad.
Asset management may help to achieve higher returns in the long run by taking into account the key risks associated with sustainability. Triglav Skladi regularly reviews sustainability risks in its investment decisions. The Triglav Zeleni equity fund is a dedicated sustainability fund, which, with around EUR 40 million assets under management, is committed to taking sustainability factors into account in investment decisions. In financial instrument management, the company aims to expand its range of products and provide better help to clients who want to comply with sustainability principles in their portfolios.
Triglav Skladi integrates ESG factors in the management process in addition to the assessments of an external independent assessor. The methodology for assigning ratings is tailored to the characteristics within each sector as defined by the Global Industry Classification Standard (GICS). The methodology used is intended to assess the company’s resilience to long-term financial risks arising from sustainability features. The assessment includes both risk assessment and management of these risks in the company.
The assessment is based on three pillars: environmental, social and corporate governance. All three pillars together, however, consist of ten areas addressing 35 key ESG factors.
As part of the investment process, Triglav Skladi has the opportunity to influence the corporate governance of companies in the portfolio, when ownership rights and the size of the participating interest allow it. Active ownership is thus crucial for the adoption of better policies and practices of companies (or issuers of financial instruments) and consequently improves their performance. Active ownership is exercised through communication with the issuer or through the exercise of rights deriving from financial instruments, which includes participation, voting and proposing agenda items at issuers’ general meetings.
See Section 11.3 Development activities related to asset management for more information on strengthening the asset management activity.
29 SASB: FN-AC-000.B |
30 SASB: FN-IN-410a.1 |
31 SASB: FN-IN-410a.2 |
The Triglav Group performed well in 2021. Compared to the preceding year, consolidated profit before tax grew by 4.6% and amounted to EUR 132.6 million and net profit amounted to EUR 113.0 million, up by 53%. The good financial result was driven by growth in business volume, prudent underwriting discipline, relatively lower claim frequency as a result of the pandemic and the favourable development of claims provisions created in past years. Net return on equity was 12.5%, up by 3.7 percentage points.
The Group’s combined ratio was within the favourable long-term target range and stood at 88.9%, down by 2.3 percentage points relative to the preceding year. The combined ratio shows the profitability of operations in the non-life and health insurance segments. Any value of this ratio below 100 means that the non-life and health insurance portfolios of the core business (excluding return on investment) are earning a profit. Lower combined ratio is a result of both the improved claims ratio (the growth of net premium income was higher than the growth of net claims incurred) and expense ratio (growth in other insurance income and reduction in net expenses for bonuses and discounts).
| Insurance Group | 2021 | 2020 | Change |
|---|---|---|---|
| Zavarovalnica Triglav | 81.8% | 86.1% | -4.3 p.p. |
| Triglav, Zdravstvena zavarovalnica | 96.0% | 97.0% | -1.0 p.p. |
| Pozavarovalnica Triglav Re | 90.5% | 94.9% | -4.4 p.p. |
| Triglav Osiguranje, Zagreb | 98.8% | 108.6% | -9.8 p.p. |
| Triglav Osiguranje, Belgrade | 99.7% | 92.0% | 7.7 p.p. |
| Lovćen Osiguranje, Podgorica | 93.7% | 82.1% | 11.6 p.p. |
| Triglav Osiguranje, Sarajevo | 98.0% | 92.4% | 5.6 p.p. |
| Triglav Osiguranje, Banja Luka | 112.1% | 102.5% | 9.6 p.p. |
| Triglav Osiguranje, Skopje | 102.1% | 103.8% | -1.8 p.p. |
| Triglav Group | 88.9% | 91.2% | -2.3 p.p. |
Total revenue increased by 10%, amounting to EUR 1,455.1 million. It is composed of gross written insurance, reinsurance and coinsurance premiums in the amount of EUR 1,353.0 million (index 110), other insurance income in the amount of EUR 48.8 million (index 119) and other income in the amount of EUR 53.3 million (index 122). The majority of other income represents income from asset management, amounting to EUR 30.2 million (index 127).
3.0 million less written premium ceded to reinsurance and coinsurance in the amount of EUR 220.9 million (index 138) and adjusted by the change in net unearned premium of EUR –12.2 million (compared to –7.0 million in 2020). Net claims incurred rose by 5% to EUR 715.0 million. The highest growth (10%) was recorded in health insurance due to higher gross claims paid (see Section 7.6 Gross claims paid for more details). Net claims incurred increased by 8% in life and pension insurance and by 1% in non-life insurance. Net claims incurred are composed of gross claims paid in the amount of EUR 736.6 million (index 106), reduced by the reinsurers’ and coinsurers’ shares in gross claims paid in the amount of EUR 44.9 million (index 131), adjusted by the change in net claims provisions of EUR 16.2 million (index 129) and increased by equalisation scheme expenses for supplemental health insurance in the amount of EUR 7.2 million (index 91).
Expenses from investments, including expenses from investments in associates, decreased by 22% to EUR 32.0 million. Expenses from investments in associates amounted to EUR 146 thousand (index 104) and expenses from investments totalled EUR 31.8 million (index 78). Losses on disposal totalled EUR 7.1 million (index 103), impairments of equity investments amounted to EUR 34 thousand (compared to EUR 2.0 million in 2020) and other expenses from investments equalled EUR 24.7 million (index 77). Other expenses from investments comprise changes in the fair value of EUR 13.3 million (index 224), other expenses from financial investments in the amount of EUR 8.5 million (index 55) and net unrealised gains on unit-linked life insurance assets of EUR 2.9 million (compared to 10.7 million in 2020).
Return on investment of the Triglav Group (excluding unit-linked life insurance contract investments) represents the difference between income and expenses from financial assets. They amounted to EUR 42.5 million, down by 41%. The main reasons for the lower rates of return on investment are mainly lower interest income due to low interest rates and lower realised capital gains. The rates of return on investment also impact the amount of insurance technical provisions and net profit of the Group. See Section 8.1.3 (the table The structure of profit before tax of the Triglav Group) for the impact of return on investment on profit before tax.
Operating expenses (acquisition costs and other operating expenses) amounted to EUR 266.9 million, up by 11%. Acquisition costs rose by 13% predominantly due to premium growth. Other operating expenses went up by 6%. The share of operating expenses from insurance operations (all functional cost groups) in gross written premium was 22.2%, up by 0.1 percentage point. See Section 7.7 Gross operating expenses for more information on operating expenses.
Change in other insurance technical provisions amounted to EUR –2.1 million and was lower than in the preceding year (EUR 62.6 million) as a result of the decline in mathematical provisions and other insurance technical provisions for health insurance. Expenses from the change in insurance technical provisions for unit-linked insurance contracts totalled EUR 112.7 million (compared to EUR 25.5 million in 2020) due to the increase in the price of fund units. Expenses for bonuses and discounts fell by 47% to EUR 11.4 million as a result of additional provisions created in the preceding year due to the COVID-19 pandemic by the parent company and Triglav, Zdravstvena zavarovalnica.
| 2019 | 2020 | 2021 | |
|---|---|---|---|
| Return on Investment | 83.6 | 72.1 | 42.5 |
| Total | 90 | 30 | 60 |
Other income was up by 22%, reaching EUR 53.3 million. This increase relates in particular to a larger volume of management fees due to a larger volume of assets under management at Triglav Skladi and due to the repayment of receivables from reinsurance operations impaired in past years at Triglav Osiguranje, Belgrade. The 2% growth in other expenses (EUR 58.4 million) mainly resulted from their movement at the parent company.
| 2021 | 2020 | Index | |
|---|---|---|---|
| Net premium income | 1,119,846,051 | 1,066,754,825 | 105 |
| - gross written premium | 1,352,975,550 | 1,233,775,365 | 110 |
| - ceded written premium | -220,949,875 | -160,022,349 | 138 |
| - change in unearned premium reserve | -12,179,624 | -6,998,191 | 174 |
| Income from investments in associates | 1,444,054 | 436,610 | 331 |
| - profit on equity investments accounted for using the equity method | 1,444,054 | 436,610 | 331 |
| - other income from investments in associates | 0 | 0 | 0 |
| Income from investments | 155,339,171 | 123,079,449 | 126 |
| - interest income calculated using the effective interest method | 34,281,279 | 42,055,802 | 82 |
| - gains on disposals | 16,301,340 | 40,162,889 | 41 |
| - other income from investments | 104,756,552 | 40,860,758 | 256 |
| Other income from insurance operations | 48,794,300 | 41,006,993 | 119 |
| - fee and commission income | 38,916,088 | 30,649,757 | 127 |
| - other income from insurance operations | 9,878,212 | 10,357,236 | 95 |
| Other income | 53,334,060 | 43,613,977 | 122 |
| Net claims incurred | 715,028,788 | 683,631,775 | 105 |
| - gross claims paid | 736,580,050 | 697,443,568 | 106 |
| - reinsurers' share | -44,884,460 | -34,278,930 | 131 |
| - changes in claims provisions | 16,152,394 | 12,541,034 | 129 |
| - equalisation scheme expenses for supplemental health insurance | 7,180,804 | 7,926,103 | 91 |
| Change in other insurance technical provisions (excluding ULI) | -2,113,408 | 62,636,590 | -3 |
| Change in insurance technical provisions for unit-linked insurance contracts | 112,661,349 | 25,492,453 | 442 |
| Expenses for bonuses and discounts | 11,404,143 | 21,350,276 | 53 |
| Operating expenses | 266,857,908 | 240,912,735 | 111 |
| - acquisition costs | 184,911,170 | 163,528,966 | 113 |
| - other operating expenses | 81,946,738 | 77,383,769 | 106 |
| Expenses from investments in associates | 145,632 | 139,422 | 104 |
| - loss on investments accounted for using the equity method | 145,632 | 139,422 | 104 |
| - other expenses from financial assets and liabilities | 0 | 0 | 0 |
| Expenses from investments | 31,832,786 | 40,993,211 | 78 |
| - loss on impairment of investments | 33,628 | 1,971,302 | 2 |
| - loss on disposal of investments | 7,122,739 | 6,941,490 | 103 |
| - other expenses from investments | 24,676,419 | 32,080,419 | 77 |
| Other insurance expenses | 51,915,940 | 51,523,388 | 101 |
| Other expenses | 58,379,653 | 57,308,722 | 102 |
| - financial expenses | 2,729,286 | 2,937,501 | 93 |
| - other expenses | 55,650,367 | 54,371,221 | 102 |
| Profit before tax | 132,644,845 | 90,903,282 | 146 |
| Income tax expense | 19,679,152 | 17,238,584 | 114 |
| Net profit for the period | 112,965,693 | 73,664,698 | 153 |
| Net profit/loss attributable to the controlling company | 112,761,816 | 73,504,373 | 153 |
| Net profit/loss attributable to the non-controlling interest holders | 203,879 | 160,325 | 127 |
| Financial result ratios | 2021 | 2020 | 2019 |
|---|---|---|---|
| Claims ratio | 61.4% | 63.1% | 63.2% |
| Expense ratio | 27.5% | 28.1% | 28.3% |
| Combined ratio | 88.9% | 91.2% | 91.5% |
| Operating expenses from insurance operations in gross written premiums | 22.2% | 22.1% | 23.2% |
| Gross written premium per company employee* (in EUR) | 292,282 | 267,485 | 260,516 |
| 2021 | 2020 | |
|---|---|---|
| Non-life | 79,745,847 | 55,436,285 |
| Life and pension | 13,457,141 | 14,408,524 |
| Health | 7,197,026 | 6,649,783 |
| Total | 100,400,014 | 76,494,592 |
| 2021 | 2020 | |
|---|---|---|
| Non-life | 17,490,477 | 23,584,921 |
| Life and pension | 6,171,883 | -11,307,315 |
| Health | 788,554 | 701,493 |
| Total | 24,450,914 | 12,979,099 |
| 2021 | 2020 | |
|---|---|---|
| Non-life | 97,236,324 | 79,021,206 |
| Life and pension | 19,629,024 | 3,101,209 |
| Health | 7,985,580 | 7,351,276 |
| Total | 124,850,928 | 89,473,691 |
| 2021 | |
|---|---|
| Total | 7,793,918 |
| 2021 | 2020 | |
|---|---|---|
| Total | 132,644,845 | 90,903,282 |
Only the employees of the insurance companies and the reinsurance company of the Triglav Group were taken into account.
Profit from return on investment is reduced by the return guaranteed by the Group’s insurance companies to life insurance policyholders in the form of a guaranteed return determined in insurance contracts. In addition, return on investment is reduced by the increase in mathematical provisions due to lower internally set maximum interest rate used for the valuation of life insurance liabilities.
Profit before tax of the Group’s non-life and health insurance segments amounted to EUR 105.2 million, up by 22% or EUR 18.8 million relative to the preceding year. The improved result was primarily due to higher profit before tax from underwriting activities as a result of more favourable current claims experience and favourable development of claims incurred in previous periods as well as higher net premium income. Lower expenses for bonuses and discounts and lower other insurance technical provisions than in the preceding year also contributed to the improved underwriting result. Profit before tax from investments was lower due to lower interest income and lower realised capital gains.
Profit before tax of the Group’s life and pension insurance segments amounted to EUR 19.6 million, an increase of EUR 16.5 million relative to the year before. The parent company had a EUR 0.8 million higher profit before tax, but due to EUR 13.4 million lower return on investment it created EUR 14.8 million lower additional provisions on account of the liability adequacy test and lower internally set maximum interest rate compared to the preceding year. The required return on mathematical provisions decreased by EUR 1.6 million, while profit before tax from underwriting activities of the life and pension insurance segment decreased by EUR 2.8 million. Other sources contributed EUR 0.5 million to the result. The result of other Group companies improved by EUR 15.7 million mainly due to the release of provisions based on the LAT for Triglav, pokojni nska družba in the amount of EUR 8.7 million. These were created in 2020 due to the reduction of the interest rate curve, and when it rose in 2021, the LAT no longer showed a deficit.
| Profit before tax from underwriting activities | Non-life | Health | Life and pension |
|---|---|---|---|
| Profit before tax from investment activities | 20% | ||
| 2021 | 85% | 80% | 15% |
| 2020 | Profit before tax from underwriting activities | Profit before tax from investment activities | Profit before tax from insurance operations |
| Profit before tax from underwriting activities | 13% | 7% | 79% |
| Profit before tax from investment activities | 25% | 3% | 72% |
| Profit before tax from insurance operations | 78% | 16% | 6% |
Zavarovalnica Triglav also performed well, ending the 2021 financial year with a high profit. Profit before tax amounted to EUR 85.7 million, a 21% increase compared to the year before. Net profit grew by 27% to EUR 73.4 million. Net return on equity increased by 1.7 percentage points to 11.1%.
Total revenue amounted to EUR 848.6 million, up by 11% relative to the preceding year. It is composed of gross written insurance and coinsurance premiums in the amount of EUR 794.4 million (index 110), other insurance income in the amount of EUR 45.4 million (index 119) and other income in the amount of EUR 8.8 million (index 112).
Net premium income rose by 3% to EUR 598.8 million. Net premium income from non-life insurance remained at approximately the same level as in 2020 (index 100), while net income from life insurance premium grew by 8%. Net premium income is composed of gross written insurance and coinsurance premiums in the amount of EUR 794.4 million less written premium ceded to reinsurance and coinsurance in the amount of EUR 188.0 million (index 136) and adjusted by the change in net unearned premium of EUR –7.6 million (compared to EUR 2.5 million in 2020).
Net claims incurred in the total amount of EUR 365.1 million dropped by 3%; in non-life insurance they fell by 8% and in life insurance they increased by 5%. Net claims incurred comprise gross claims paid in the amount of EUR 408.9 million (index 100) less the reinsurers’ and coinsurers’ shares in claims in the amount of EUR 35.8 million (index 113) and adjusted by the change in net claims provisions of EUR –7.9 million (compared to EUR –1.3 million in 2019).
Operating expenses (acquisition costs and other operating expenses) totalled EUR 170.3 million (index 109). Acquisition costs and other operating expenses increased at the same growth rate. The growth of total operating expenses (all functional cost groups) was behind gross written premium growth, which resulted in a 0.5 percentage point lower ratio of expenses to written premium (24.6%).
Income from investments, including income from investments in associates, rose by 38% to EUR 123.8 million. Income from investments in associates totalled EUR 8.2 million (compared to EUR 303 thousand in 2020) mainly as a result of dividends paid. Income from investments climbed by 30% to EUR 115.6 million. Interest income was down by 24% and reached EUR 19.7 million, while gains on disposal of investments declined by 60% to EUR 14.9 million primarily as a result of lower volume of trading in financial instruments. Other income from investments totalled EUR 81.0 million (index 312). They comprise changes in the fair value of EUR 1.9 million (index 56), other income from financial investments of EUR 2.7 million (index 276), dividends of EUR 4.8 million (index 127) and net unrealised gains on unit-linked life insurance assets of EUR 71.6 million (compared to EUR 17.8 million in 2020). The latter rose predominantly due to the growth of share prices, to which the majority of policyholders’ assets under these insurance contracts are tied (increase in prices of fund units).
Financial investments in the amount of EUR 5.4 million (index 77).
Return on investment (excluding unit-linked life insurance contract investments) declined by 45% to EUR 28.6 million. The reasons for the lower rates of return on investment are primarily lower interest income and lower realized capital gains.
| 2019 | 2020 | 2021 | |
|---|---|---|---|
| Return on Investment | 55.2 | 52.2 | 28.6 |
amounted to EUR –14.0 million (compared to EUR 13.4 million in 2020), predominantly due to reductions in mathematical provisions. Expenses from the change in insurance technical provisions for unit-linked insurance contracts amounted to EUR 91.9 million (compared to EUR 13.3 million in 2020) due to the increase in the price of fund units. Expenses for bonuses and discounts declined by 35% to EUR 10.5 million as a result of additional provisions created in 2020 due to the COVID-19 pandemic. Other insurance income, excluding fees and commissions, totalled EUR 7.2 million, down by 10% mainly due to lower interest income from subrogation receivables. Other insurance expenses, excluding fees and commissions, fell by 16% to EUR 10.9 million primarily as a result of lower expenses due to impairment of receivables from insurance operations (premiums and subrogations). Net fee and commission income grew by 27% predominantly due to the increased volume of reinsurance business. They totalled EUR 23.8 million. Other income in the amount of EUR 8.8 million was 12% higher mainly due to an increase in other income from services which mostly relate to services provided to Group companies and cancelled provisions for legal actions. Other expenses in the amount of EUR 22.5 million increased by 10% relative to the year before.
| 2021 | 2020 | Index | |||||
|---|---|---|---|---|---|---|---|
| Net premium income | 598,755,000 | 583,867,846 | 103 | ||||
| - gross written premium | 794,350,103 | 719,255,868 | 110 | ||||
| - ceded written premium | -187,969,749 | -137,934,204 | 136 | ||||
| - change in unearned premium reserve | -7,625,354 | 2,546,182 | |||||
| Income from investments in associates | 8,179,885 | 302,643 | 2,703 | ||||
| - profit on equity investments accounted for using the equity method | 0 | 0 | |||||
| - other income from investments in associates | 8,179,885 | 302,643 | 2,703 | ||||
| Income from investments | 115,612,898 | 89,181,634 | 130 | ||||
| - interest income calculated using the effective interest method | 19,685,884 | 25,933,800 | 76 | ||||
| - gains on disposals | 14,888,504 | 37,288,158 | 40 | ||||
| - other income from investments | 81,038,510 | 25,959,676 | 312 | ||||
| Other income from insurance operations | 45,387,033 | 38,110,029 | 119 | ||||
| - fee and commission income | 38,196,377 | 30,080,891 | 127 | ||||
| - other income from insurance operations | 7,190,656 | 8,029,138 | 90 | ||||
| Other income | 8,825,846 | 7,872,585 | 112 | ||||
| Net claims incurred | 365,137,225 | 375,336,947 | 97 | ||||
| - gross claims paid | 408,868,382 | 408,278,140 | 100 | ||||
| - reinsurers’ share | -35,818,958 | -31,689,089 | 113 | ||||
| - changes in claims provisions | -7,912,199 | -1,252,104 | 632 | ||||
| - equalisation scheme expenses for supplementary health insurance | 0 | 0 | |||||
| Change in other insurance technical provisions (excluding ULI) | -13,989,227 | 13,449,956 | |||||
| Change in insurance technical provisions for unit-linked insurance contracts | 91,860,583 | 13,270,367 | 692 | ||||
| Expenses for bonuses and discounts | 10,490,736 | 16,029,498 | 65 | ||||
| Operating expenses | 170,334,866 | 155,904,617 | 109 | ||||
| - acquisition costs | 124,268,560 | 113,568,435 | 109 | ||||
| - other operating expenses | 46,066,306 | 42,336,182 | 109 | ||||
| Expenses from investments in associates | 1,087,047 | 3,930,396 | 28 | ||||
| - loss on investments accounted for using the equity method | 0 | 0 | |||||
| - other expenses from financial assets and liabilities | 1,087,047 | 3,930,396 | 28 | ||||
| Expenses from investments | 18,366,687 | 25,675,273 | 72 | ||||
| - loss on impairment of investments | 0 | 1,632,351 | 0 | ||||
| - loss on disposal of investments | 6,870,017 | 5,719,183 | 120 | ||||
| - other expenses from investments | 11,496,670 | 18,323,739 | 63 | ||||
| Other insurance expenses | 25,298,497 | 24,308,038 | 104 | ||||
| Other expenses | 22,485,637 | 20,359,679 | 110 | ||||
| - financial expenses | 2,277,892 | 2,578,946 | 88 | ||||
| - other expenses | 20,207,745 | 17,780,733 | 114 | ||||
| Profit before tax | 85,688,611 | 71,069,966 | 121 | ||||
| Income tax expense | 12,273,062 | 13,072,327 | 94 | ||||
| Net profit for the period | 73,415,549 | 57,997,639 | 127 |
| Financial result ratios | 2021 | 2020 | 2019 |
|---|---|---|---|
| Return on equity | 11.1% | 9.5% | 12.4% |
| Claims ratio | 50.4% | 54.8% | 55.1% |
| Expense ratio | 31.4% | 31.3% | 30.5% |
| Combined ratio | 81.8% | 86.1% | 85.6% |
| Operating expenses of insurance business in gross written premiums | 24.6% | 25.0% | 25.7% |
The Group’s total equity as at 31 December 2021 amounted to EUR 933.0 million, up by 7% relative to the preceding year, primarily as a result of higher net profit for the year and increased reserves from profit. Total equity represented 21.3% of total balance sheet liabilities, an increase of 0.3 percentage point.
Equity attributable to the controlling company rose by 7% to EUR 930.5 million, while non-controlling interest holders had EUR 2.5 million, down by 1%. The share capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary shares. As a result of a decrease in the value of available-for-sale financial assets, fair value reserves declined by 13% to EUR 77.8 million. Share premium of EUR 50.3 million remained at a level approximately equal to the 2020 year-end (index 100).
Reserves from profit amounted to EUR 421.6 million, a 10% increase relative to the preceding year. They comprise legal and statutory reserves in the amount of EUR 20.3 million, contingency reserves of EUR 640 thousand and other reserves of EUR 400.7 million. Other reserves from profit rose by EUR 36.8 million due to the allocation of net profit for the year.
Accumulated profit amounted to EUR 310.0 million and recorded a 13% increase. In addition to net profit for the year, accumulated profit includes EUR 234.6 million of net profit brought forward (index 102). Net profit brought forward increased by EUR 44.1 million due to the transfer of net profit for the preceding year and decreased by EUR 36.8 million due to the payment of dividends and by EUR 205 thousand due to the transfer to reserves. Net profit for the year disclosed in the balance sheet totalled EUR 75.4 million due to the allocation to reserves from profit and was EUR 37.3 million lower than net profit disclosed in the income statement (see Section 9.2.1 for further information).
Subordinated liabilities amounted to EUR 49.5 million and were at a level approximately equal to the 2020 year-end (index 100).
Gross insurance technical provisions were 5% higher, totalling EUR 3,198.7 million. They represented 73.1% of total balance sheet liabilities, down by 0.2 percentage point relative to the preceding year. Mathematical provisions and insurance technical provisions for unit-linked life insurance contracts amounted to EUR 2,054.9 million, up by 4%. An increase was also seen in claims provisions (index 108), provisions for gross unearned premium (index 107) and other insurance technical provisions (index 104). The Group’s insurance technical provisions are discussed in greater detail in Section 7.8 Risk equalisation.
Lease liabilities amounted to EUR 11.3 million, up by 12%. They comprise long-term lease liabilities of EUR 10.0 million (index 104) and short-term lease liabilities of EUR 1.2 million (index 317).
Other financial liabilities increased by 7% to EUR 3.1 million (a 0.1% share in total balance sheet liabilities), mainly due to higher liabilities arising from deposits with cedants from inward and outward reinsurance at Pozavarovalnica Triglav Re.
Employee benefits of EUR 17.7 million declined by 1% and other provisions by 11% to EUR 2.5 million. Deferred tax liabilities fell by 36% to EUR 9.4 million primarily due to the lower fair value reserves for which deferred tax is calculated.
Financial investments, representing 67.2% of total assets, amounted to EUR 2,937.7 million, up by 2% relative to the 2020 year-end. Available-for-sale financial investments accounted for the bulk, reaching EUR 2,137.6 million as at 31 December 2021. Furthermore, financial investments measured at fair value through profit or loss amounted to EUR 544.4 million, held-to-maturity financial investments to EUR 157.6 million and deposits and loans to EUR 98.1 million. Unit-linked insurance assets amounted to EUR 619.6 million, up by 23%. See Section 7.9 Investments structure of the Triglav Group and Zavarovalnica Triglav for more information on the structure of financial investments.
The Group’s financial investments in associates rose by 28% to EUR 36.0 million mainly due to the capital increase of Diagnostični center Bled (ZT SR) and Trigal. Investment property declined by 5% and amounted to EUR 75.1 million. Receivables, representing 4.9% of total balance sheet assets, grew by 5% compared to the preceding year and amounted to EUR 212.4 million, of which receivables from direct insurance operations of EUR 116.9 million (index 111) accounted for the bulk. Receivables from reinsurance and coinsurance operations reached EUR 67.2 million (index 93), other receivables stood at EUR 24.2 million (index 103) and current tax receivables at EUR 4.1 million (index 212).
Insurance technical provisions transferred to reinsurance contracts increased by 39% and amounted to EUR 174.8 million. Assets from reinsurance contracts from claims provisions rose to EUR 116.1 million (index 140), assets from unearned premium increased to EUR 53.1 million (index 130) and assets from mathematical provisions grew by 181% to EUR 5.6 million.
Property, plant and equipment totaled EUR 108.7 million, down by 4%. Intangible assets grew by 6%, totaling EUR 107.2 million. Right-of-use assets increased by 11% to EUR 10.9 million. They comprise the right to use land and buildings of EUR 8.6 million (index 106), the right to use vehicles of EUR 2.2 million (index 139) and the right to use equipment and other assets of EUR 85,000 (index 93).
Non-current assets held for sale rose to EUR 3.8 million (index 416). Due to the planned sale of investment property, Triglav, Upravljanje nepremičnin reclassified real property in the amount of EUR 3.1 million.
Cash and cash equivalents amounted to EUR 82.3 million (index 101) and other assets totaled EUR 4.8 million (index 77).
| Financial position ratios | 2021 | 2020 | 2019 |
|---|---|---|---|
| Equity to total liabilities ratio | 21.3% | 21.0% | 20.1% |
| Average equity balance as % of gross written premium | 66.6% | 67.4% | 65.0% |
| Return on equity | 12.5% | 8.9% | 10.9% |
| Gross insurance technical provisions to total liabilities ratio | 73.1% | 73.3% | 73.1% |
| Average balance of gross insurance technical provisions as % of gross written premium | 230.3% | 239.6% | 236.1% |
| Financial assets to total assets ratio | 81.3% | 81.9% | 81.8% |
| Financial assets to gross insurance technical provisions | 111.2% | 111.7% | 111.9% |
| 31 December 2021 | 31 December 2020 | Index | Share 2021 | Share 2020 |
|---|---|---|---|---|
| ASSE TS | 4,374,353,616 | 4,139,441,072 | 106 | 100.0% | 100.0% |
|---|---|---|---|---|---|
| Intangible assets | 107,184,415 | 100,975,475 | 106 | 2.5% | 2.4% |
| Property, plant and equipment | 108,655,212 | 113,291,036 | 96 | 2.5% | 2.7% |
| Non-current assets held for sale | 3,812,044 | 915,851 | 416 | 0.1% | 0.0% |
| Deferred tax assets | 927,425 | 778,589 | 119 | 0.0% | 0.0% |
| Investment property | 75,110,973 | 78,977,800 | 95 | 1.7% | 1.9% |
| Right-of-use assets | 10,933,109 | 9,821,211 | 111 | 0.2% | 0.2% |
| Investments in associates | 36,031,346 | 28,237,714 | 128 | 0.8% | 0.7% |
| Financial investments | 2,937,700,150 | 2,887,380,559 | 102 | 67.2% | 69.8% |
| - loans and deposits | 98,104,537 | 97,971,079 | 100 | 2.2% | 2.4% |
| - held to maturity | 157,560,733 | 162,824,686 | 97 | 3.6% | 3.9% |
| - available for sale | 2,137,609,082 | 2,101,914,068 | 102 | 48.9% | 50.8% |
| - recognised at fair value through profit or loss | 544,425,798 | 524,670,726 | 104 | 12.4% | 12.7% |
| Unit-linked insurance assets | 619,617,488 | 501,808,980 | 123 | 14.2% | 12.1% |
| Reinsurers' share of technical provisions | 174,839,890 | 125,873,637 | 139 | 4.0% | 3.0% |
| Receivables | 212,376,909 | 203,183,851 | 105 | 4.9% | 4.9% |
| - receivables from direct insurance operations | 116,855,207 | 105,484,939 | 111 | 2.7% | 2.5% |
| - receivables from reinsurance and coinsurance operations | 67,200,932 | 72,355,133 | 93 | 1.5% | 1.7% |
| - current tax receivables | 4,127,384 | 1,950,631 | 212 | 0.1% | 0.0% |
| - other receivables | 24,193,386 | 23,393,148 | 103 | 0.6% | 0.6% |
| Other assets | 4,843,025 | 6,296,705 | 77 | 0.1% | 0.2% |
| Cash and cash equivalents | 82,321,630 | 81,899,664 | 101 | 1.9% | 2.0% |
| EQUITY AND LIABILITIES | 4,374,353,616 | 4,139,441,072 | 106 | 100.0% | 100.0% |
|---|---|---|---|---|---|
| Equity | 932,986,869 | 870,151,947 | 107 | 21.3% | 21.0% |
| Controlling interests | 930,511,224 | 867,648,574 | 107 | 21.3% | 21.0% |
| - share capital | 73,701,392 | 73,701,392 | 100 | 1.7% | 1.8% |
| - share premium | 50,283,747 | 50,271,107 | 100 | 1.1% | 1.2% |
| - reserves from profit | 421,633,959 | 384,106,692 | 110 | 9.6% | 9.3% |
| - treasury share reserves | 364,680 | 364,680 | 100 | 0.0% | 0.0% |
| - treasury shares | -364,680 | -364,680 | 100 | 0.0% | 0.0% |
| - fair value reserve | 77,834,278 | 89,293,484 | 87 | 1.8% | 2.2% |
| - net profit brought forward | 234,588,994 | 229,284,048 | 102 | 5.4% | 5.5% |
| - net profit for the year | 75,439,847 | 44,131,955 | 171 | 1.7% | 1.1% |
| - currency translation differences | -2,970,993 | -3,140,104 | 95 | -0.1% | -0.1% |
| Non-controlling interests | 2,475,645 | 2,503,373 | 99 | 0.1% | 0.1% |
| Subordinated liabilities | 49,471,831 | 49,423,693 | 100 | 1.1% | 1.2% |
| Insurance technical provisions | 2,576,368,384 | 2,523,229,144 | 102 | 58.9% | 61.0% |
| - unearned premiums | 370,043,725 | 344,760,927 | 107 | 8.5% | 8.3% |
| - mathematical provisions | 1,432,613,660 | 1,457,023,963 | 98 | 32.8% | 35.2% |
| - claims provisions | 694,498,311 | 645,331,168 | 108 | 15.9% | 15.6% |
| - other insurance technical provisions | 79,212,688 | 76,113,086 | 104 | 1.8% | 1.8% |
| Insurance technical provisions for unit-linked insurance contracts | 622,303,399 | 509,984,710 | 122 | 14.2% | 12.3% |
| Provisions for employee benefits | 17,672,133 | 17,781,153 | 99 | 0.4% | 0.4% |
| Other provisions | 2,512,536 | 2,809,101 | 89 | 0.1% | 0.1% |
| Deferred tax liabilities | 9,377,034 | 14,539,515 | 64 | 0.2% | 0.4% |
| Other financial liabilities | 3,085,647 | 2,895,834 | 107 | 0.1% | 0.1% |
| Operating liabilities | 63,341,658 | 70,313,038 | 90 | 1.4% | 1.7% |
| - liabilities from direct insurance operations | 19,450,557 | 16,801,856 | 116 | 0.4% | 0.4% |
| - liabilities from reinsurance and coinsurance operations | 41,241,465 | 48,940,738 | 84 | 0.9% | 1.2% |
| - current tax liabilities | 2,649,636 | 4,570,444 | 58 | 0.1% | 0.1% |
| Lease liabilities | 11,274,806 | 10,025,532 | 112 | 0.3% | 0.2% |
| Other liabilities | 85,959,319 | 68,287,405 | 126 | 2.0% | 1.6% |
Zavarovalnica Triglav’s total equity amounted to EUR 675.2 million, up by 5% compared to the preceding year. Its share in the balance sheet total increased by 0.2 percentage points to 21.6%. The share capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary registered no-par value shares. Share premium of EUR 53.4 million also remained unchanged. Reserves from profit grew by 10% to EUR 404.6 million and comprise legal and statutory reserves in the amount of EUR 4.7 million and other reserves from profit in the amount of EUR 399.9 million, which rose by EUR 36.7 million due to the allocation of net profit.
reserves declined by 6% to EUR 5 5.9 million. Accumulated profit amounted to EUR 87.7 million (index 98), including net profit for the year (index 84) and net profit brought forward of EUR 50.9 million. Net profit brought forward increased by EUR 29.1 million due to the transfer of net profit for the preceding year and decreased due to the payment of dividends of EUR 38.6 million. Net profit for the year disclosed in the balance sheet totalled EUR 36.7 million, which was EUR 36.7 million less than net profit disclosed in the income statement.
In accordance with the Management Board’s decision, the Company used a portion of net profit to form other reserves from profit. Subordinated liabilities amounted to EUR 49.5 million and were at a level approximately equal to the 2020 year-end (index 100).
Gross insurance technical provisions totalled EUR 2,280.5 million, up by 4%. They represented 73.1% of total balance sheet liabilities, down by 0.3 percentage point. Mathematical provisions grew by 4% to EUR 1,548.5 million. Provisions for gross unearned premium increased by 5% and gross claims provisions by 4%. Other insurance-technical provisions declined by 9%.
Operating liabilities grew by 3% to EUR 34.9 million and accounted for 1.1% of total balance sheet liabilities. Their growth was mainly influenced by a 24% increase in liabilities from reinsurance and coinsurance operations. Lease liabilities amounted to EUR 4.6 million, up by 26% relative to the 2020 year-end. The majority of lease liabilities was accounted for by long-term lease liabilities, while short-term lease liabilities amounted to only EUR 15,000 (index 196).
Deferred tax liabilities offset against deferred tax assets amounted to EUR 4.2 million. They fell by 56% primarily due to the lower fair value reserves for which deferred tax is calculated. Other liabilities increased by 37% to EUR 55.1 million, mainly due to higher short-term trade payables. They represented 1.8% of total balance sheet liabilities.
Financial investments totalled EUR 1,968.7 million and were slightly lower compared to 2020 (index 99). Their share in total assets was 63.1%. In total financial investments, EUR 1,588.4 million was accounted for by available-for-sale investments, EUR 206.8 million by investments measured at fair value through profit or loss, EUR 140.9 million by held-to-maturity investments and EUR 32.5 million by loans and deposits. Unit-linked insurance assets increased by 22% to EUR 539.4 million.
Investments in subsidiaries and associates rose by 6% and totalled EUR 173.6 million, representing 5.6% of total balance sheet assets. Their increase is the result of the capital increase of Diagnostični center Bled (Z TSR), Trigal and Triglav Avtoservis in the amount of EUR 9.9 million (see Section 2.8.4 Composition of the Triglav Group for more information). Investment property amounted to EUR 43.8 million, down by 1%.
Receivables grew by 10% to EUR 105.2 million and represented 3.4% of total balance sheet assets. Receivables from direct insurance operations, which went up by 9% and amounted to EUR 73.5 million, accounted for the bulk. Receivables from coinsurance and reinsurance operations increased by 19% to EUR 23.5 million, other receivables dropped by 10% to EUR 7.6 million and current tax receivables amounted to EUR 564,000 (there were none as at 31 December 2020).
amounted to EUR 67.0 million. Property, plant and equipment of EUR 65.1 million fell by 4%, predominantly due to the calculation of current depreciation.
Right-of-use assets amounted to EUR 4.5 million (index 127). They comprise the right to use land and buildings of EUR 3.2 million (index 135), the right to use vehicles of EUR 1.3 million (index 110) and the right to use other assets of EUR 47,000 (index 220).
| ASSETS | 3,118,944,094 | 2,995,518,165 | 104 | 100.0% | 100.0% |
|---|---|---|---|---|---|
| Intangible assets | 67,022,027 | 62,397,579 | 107 | 2.1% | 2.1% |
| Property, plant and equipment | 65,143,307 | 67,775,451 | 96 | 2.1% | 2.3% |
| Investment property | 43,840,055 | 44,451,276 | 99 | 1.4% | 1.5% |
| Right-of-use assets | 4,548,298 | 3,587,916 | 127 | 0.1% | 0.1% |
| Investments in subsidiaries | 131,924,683 | 132,337,466 | 100 | 4.2% | 4.4% |
| Investments in associates | 41,693,997 | 31,337,951 | 133 | 1.3% | 1.0% |
| Financial investments | 1,968,679,979 | 1,983,588,373 | 99 | 63.1% | 66.2% |
|---|---|---|---|---|---|
| - loans and deposits | 32,521,523 | 36,951,085 | 88 | 1.0% | 1.2% |
| - held to maturity | 140,946,233 | 143,908,512 | 98 | 4.5% | 4.8% |
| - available for sale | 1,588,390,263 | 1,595,002,429 | 100 | 50.9% | 53.2% |
| - recognised at fair value through profit and loss | 206,821,960 | 207,726,347 | 100 | 6.6% | 6.9% |
| Unit-linked insurance assets | 539,417,972 | 442,292,488 | 122 | 17.3% | 14.8% |
|---|---|---|---|---|---|
| Reinsurers' share of technical provisions | 136,077,958 | 105,903,438 | 128 | 4.4% | 3.5% |
|---|---|---|---|---|---|
| Receivables | 105,169,567 | 95,800,206 | 110 | 3.4% | 3.2% |
|---|---|---|---|---|---|
| - receivables from direct insurance operations | 73,516,574 | 67,632,214 | 109 | 2.4% | 2.3% |
| - receivables from reinsurance and coinsurance operations | 23,522,340 | 19,797,094 | 119 | 0.8% | 0.7% |
| - current tax receivables | 564,166 | 0 | 0 | 0.0% | 0.0% |
| - other receivables | 7,566,487 | 8,370,898 | 90 | 0.2% | 0.3% |
| Other assets | 1,513,260 | 3,741,799 | 40 | 0.0% | 0.1% |
|---|---|---|---|---|---|
| Cash and cash equivalents | 13,912,991 | 22,304,222 | 62 | 0.4% | 0.7% |
|---|---|---|---|---|---|
| EQUITY AND LIABILITIES | 3,118,944,094 | 2,995,518,165 | 104 | 100.0% | 100.0% |
|---|---|---|---|---|---|
| Equity | 675,221,933 | 644,003,173 | 105 | 21.6% | 21.5% |
|---|---|---|---|---|---|
| Controlling interests | 675,221,933 | 644,003,173 | 105 | 21.6% | 21.5% |
| - share capital | 73,701,392 | 73,701,392 | 100 | 2.4% | 2.5% |
| - share premium | 53,412,884 | 53,412,884 | 100 | 1.7% | 1.8% |
| - reserves from profit | 404,562,643 | 367,862,643 | 110 | 13.0% | 12.3% |
| - fair value reserve | 55,884,634 | 59,402,079 | 94 | 1.8% | 2.0% |
| - net profit/loss brought forward | 50,944,831 | 60,526,536 | 84 | 1.6% | 2.0% |
| - net profit/loss for the year | 36,715,549 | 29,097,639 | 126 | 1.2% | 1.0% |
| Subordinated liabilities | 49,471,831 | 49,423,693 | 100 | 1.6% | 1.6% |
|---|---|---|---|---|---|
| Insurance technical provisions | 1,740,373,185 | 1,750,315,382 | 99 | 55.8% | 58.4% |
|---|---|---|---|---|---|
| - unearned premiums | 246,017,849 | 235,190,816 | 105 | 7.9% | 7.9% |
| - mathematical provisions | 1,008,319,155 | 1,041,557,084 | 97 | 32.3% | 34.8% |
| - claims provisions | 446,567,255 | 430,259,621 | 104 | 14.3% | 14.4% |
| - other insurance technical provisions | 39,468,926 | 43,307,861 | 91 | 1.3% | 1.4% |
| Insurance technical provisions for unit-linked insurance contracts | 540,135,052 | 448,726,097 | 120 | 17.3% | 15.0% |
|---|---|---|---|---|---|
| Provisions for employee benefits | 12,842,304 | 13,073,364 | 98 | 0.4% | 0.4% |
|---|---|---|---|---|---|
| Other provisions | 358,980 | 769,957 | 47 | 0.0% | 0.0% |
|---|---|---|---|---|---|
| Deferred tax liabilities | 4,212,732 | 9,531,162 | 44 | 0.1% | 0.3% |
|---|---|---|---|---|---|
| Other financial liabilities | 1,690,586 | 1,633,896 | 103 | 0.1% | 0.1% |
|---|---|---|---|---|---|
| Operating liabilities | 34,861,554 | 33,977,772 | 103 | 1.1% | 1.1% |
|---|---|---|---|---|---|
| - liabilities from direct insurance operations | 10,182,945 | 10,636,904 | 96 | 0.3% | 0.4% |
| - liabilities from reinsurance and coinsurance operations | 24,678,609 | 19,824,185 | 124 | 0.8% | 0.7% |
| - current tax liabilities | 0 | 3,516,683 | 0 | 0.0% | 0.1% |
| Lease liabilities | 4,643,844 | 3,675,805 | 126 | 0.1% | 0.1% |
|---|---|---|---|---|---|
| Other liabilities | 55,132,093 | 40,387,864 | 137 | 1.8% | 1.3% |
|---|---|---|---|---|---|
Cash flow from investing activities decreased to EUR – 93.9 million (index 112), which was influenced by a larger volume of investing activities due to cash flow from operating and financing activities and changes in cash in the period. The reason for lower absolute income and expenses from investing activities compared to the preceding year is mainly the lower volume of trading in financial instruments as part of the tactical adjustment of portfolios.
Cash flow from financing activities was negative and stood at EUR – 43.1 million (compared to – 29.0 million in 2020). There was no income from financing activities in 2021. Financing expenses include dividend payments, interest on treasury bonds, and expenses for interest and principal payments from leases. Most expenses in 2021 were related to dividend payments and in the preceding year to the maturity of the bond.
The closing balance of cash and cash equivalents totalled EUR 82.3 million, a 1% increase relative to the year before.
| 2021 | 2020 | Index | ||||
|---|---|---|---|---|---|---|
| A. Operating cash flow | Income statement items | 144,641,397 | 125,392,511 | 115 | ||
| Changes in net current assets - operating balance sheet items | -7,283,265 | -6,336,992 | 115 | |||
| Net cash from/ (used in) operating activities | 137,358,132 | 119,055,519 | 115 | |||
| B. Cash flows from investing activities | Cash inflows from investing activities | 1,093,015,888 | 1,361,243,567 | 80 | ||
| Cash outflows from investing activities | -1,186,871,319 | -1,445,191,950 | 82 | |||
| Net cash from/ (used in) investing activities | -93,855,431 | -83,948,383 | 112 | |||
| C. Cash flows from financing activities | Cash inflows from financing activities | 0 | 0 | 0 | ||
| Cash outflows from financing activities | -43,097,819 | -29,035,063 | 148 | |||
| Net cash from/ (used in) financing activities | -43,097,819 | -29,035,063 | 148 | |||
| D. Closing balance of cash and cash equivalents | 82,321,630 | 81,899,664 | 101 | |||
| E1. Net cash flow for the period | 404,882 | 6,072,073 | 7 | |||
| E2. External acquisition | 0 | 0 | 0 | |||
| E3. Currency differences | 17,084 | -42,184 | ||||
| F. Opening balance of cash and cash equivalents | 81,899,664 | 75,869,775 | 108 |
A positive cash flow from operating activities of Zavarovalnica Triglav totaled EUR 54.0 million, up by 40% compared to the year before. Its increase, as in the case of the Group, is mainly due to a higher volume of net written premium.
Cash flow from financing activities was negative and stood at EUR –42.2 million (index 167). As in the preceding year, there was no income from financing activities in 2021. Financing expenses include dividend payments, interest on treasury bonds, and expenses for interest and principal payments from leases. Their increase is related to the payment of dividends in 2021, because they were not paid out in the preceding year. The closing balance of cash and cash equivalents of EUR 13.9 million was lower by 38% relative to the preceding year.
Summary cash flow statement of Zavarovalnica Triglav
| 2021 | 2020 | Index | |||||
| A. Operating cash flow | 57,377,294 | 43,160,418 | 133 | ||||
| Changes in net current assets – operating balance sheet items | -3,345,436 | -4,635,089 | 72 | ||||
| Net cash from/ (used in) operating activities | 54,031,858 | 38,525,329 | 140 | ||||
| B. Cash flows from investing activities | Cash inflows from investing activities | 945,312,942 | 1,132,256,197 | 83 | |||
| Cash outflows from investing activities | -965,578,127 | -1,149,365,270 | 84 | ||||
| Net cash from/ (used in) investing activities | -20,265,184 | -17,109,073 | 118 | ||||
| C. Cash flows from financing activities | Cash inflows from financing activities | 0 | 0 | 0 | |||
| Cash outflows from financing activities | -42,157,904 | -25,224,146 | 167 | ||||
| Net cash from/ (used in) financing activities | -42,157,904 | -25,224,146 | 167 | ||||
| D. Closing balance of cash and cash equivalents | 13,912,991 | 22,304,222 | 62 | ||||
| E. Net cash flow for the period | -8,391,231 | -3,807,890 | 220 | ||||
| F. Opening balance of cash and cash equivalents | 22,304,222 | 26,112,112 | 85 |
clients in both core activities were expanded.
The centralisation of asset management was increased and the analysis of ESG aspects was integrated into the investment process.
The planned development projects were successfully completed. The Group’s efforts remain focused on flexible products and services based on proactive risk identification and comprehensive risk management. In this way, the Group strives to improve its clients’ financial security in all stages of their life and business development, adapt to trends in society, especially demographic and technological, and support changes to reduce climate impacts.
The holders of development activities for the whole Triglav Group are the relevant divisions and departments at the parent company. In their work, they research the dynamic and growing needs of clients, monitor developments in other industries and sectors and ensure the transfer of processes, products and services, which they adapt to the specifics of particular markets. Sustainable aspects and regulatory changes are incorporated into the development of products and services, which is presented in greater detail in Section 12 Sustainable development.
A client-centric approach is the Group’s key focus. It is placed alongside business success and stability, digitalisation and the introduction of new forms of business, and the development of an open culture of cooperation. Its implementation had a positive impact on the Group’s business results even before the onset of the pandemic in 2020, when it became clear that such policy was the right one and therefore its implementation was further accelerated. It will maintain its key role in the new strategy period. It is supported by the continued comprehensive digitalisation of business and the development of a multi-channel approach, organisational culture and a flexible range of modern insurance and investment products and services, which are provided with existing and newly established business ecosystems.
At the strategic level, the concept of client focus was expanded to simultaneously achieve an outstanding and uniform user experience. The establishment of a central entry point and the upgrade of the client relationship management (CRM) system will contribute to achieving this goal.
With flexible products, such as modular insurance, the Group strives to offer clients a wide range of insurance scope and coverage, and by digitalising processes and focusing on a uniform and outstanding user experience enable clients to choose the most appropriate form of cooperation at any stage.
After the first pandemic year, in which the highest level of employee and client satisfaction was achieved to date, the clients’ changing needs and the increased use of digital tools continued in 2021. Once again, very high client satisfaction was recorded. See Section 12 Sustainable development for more information.
despite the easing of measures, which shows that clients accepted it and want it in the future. In the second year, marked by measures related to limiting the spread of the COVID-19 pandemic, traditional distribution channels continued to be integrated with new technological solutions for more effective remote business and even more targeted client satisfaction.
Triglav Skladi is available for information on investment solutions. To complement its diverse selection of communication channels, the Group developed a live/web chat and chat operated by a digital assistant, i.e. a chatbot. An online application for booking appointments with an insurance agent is also available to clients, which allows them to make an appointment, use a video call and includes the online presentation of agents.
The range of assistance services was further expanded. In addition to car, home and computer assistance as well as assistance for microvehicles and watercraft, assistance for small animals is now available. The organisation of work was adapted to ensure the effective and client-friendly settlement of mass claims, while simple property damage claims can be reported by calling the toll-free telephone number, online or via the Triglav Asistenca mobile application. In terms of the accessibility and availability of the Group’s solutions, public calls and instructions on what steps to take in the event of a pandemic and major CAT events are published.
In 2021, many activities in Group subsidiaries focused on upgrading client relationships. In addition to upgrading the operation of call centres in Croatia and Serbia, the call centre was launched in North Macedonia. Many processes were perfected in order to take out insurance with ease, helping to increase the responsiveness of back-office departments.
Digital business solutions were optimised and adapted throughout the year, which are presented below. At the forefront were:
A high level of accessibility of the Group’s services was maintained while expanding communication channels. Responsiveness is key to building and strengthening client relationships. This aspect is also realised by ensuring our availability on toll-free telephone numbers (general information and technical assistance: 080 555 555, [email protected]; and assistance services: 080 2864 in Slovenia, 080 2222 2864 abroad). In 2021, nearly 500,000 calls were answered and nearly 80,000 written client requests were received.
sales channel, i.e. own sales network, were improved through regular and extensive training, while cooperation with the external sales network was strengthened via various forms of networking. A lot of effort was invested in upgrading the sales competencies for bank sales channels, while simplifying the procedures for attracting new clients. Through education and training, the sales staff learnt about changes in the environment, especially new purchasing habits of insurance service users and risks and digitally supported sales processes, while facilitating intergenerational cooperation and knowledge transfer, as reported in Section 12 Sustainable development.
In Slovenia, an advanced digital uniform platform began to be implemented to support the sales process at the Group for non-life, life and health insurance in one place. With regard to life insurance, single premium unit-linked life insurance and complementary serious illness insurance products sold via the bank channel were redesigned in the single digital platform.
In Croatia, an application solution for the more systematic use of sales opportunities in the Group’s own sales network was upgraded and the conclusion of selected insurance policies was enabled via a more advanced application in other sales channels.
In Serbia, business processes for cross-selling and even more systematic processing of sales opportunities were upgraded.
In the market of Bosnia and Herzegovina, the Group’s own sales network continued to be strengthened and branches in Posušje and Livno opened their doors. Cooperation with bank sales channels with respect to non-life insurance was expanded in terms of process and products, the conclusion of life insurance policies was improved and simplified, and travel health insurance with assistance was offered via online sales channels.
In North Macedonia, the sale of insurance products was promoted via own and external sales networks, and the application for taking out insurance and reporting claims was upgraded. Cooperation with Komercijalna banka Skopje was strengthened with respect to loan protection insurance covering unemployment, disability, accident, illness and death.
In Montenegro, in addition to the Group’s own sales network, cooperation with bank sales channels was strengthened. Due to legislative changes applying to insurance for the default of consumer loans, a cooperation agreement was entered into with three banks. Online conclusion of insurance for micromobility vehicles and accident insurance for children was also enhanced.
The Group is increasing its volume of business by entering into strategic alliances or partnering with companies and other partners in its markets and beyond. In this way, it is reducing business uncertainties, overcoming its geographical limitations and improving the expertise and content of services provided to its clients. In 2021, it offered a number of new forms of insurance protection to its partners and clients. Thanks to the high level of automation and digitalisation of cooperation, they also experienced an enriched and friendlier sales experience.
In Slovenia, the Company built strategic partnerships with banks and other financial institutions as well as sales networks for the sale of insurance services. It strengthened its cooperation with Nova KBM, Gorenjska banka, Sberbank and Delavska hranilnica, as well as with partners for insurance agency and brokerage activities. It entered into new alliances with mobile operators to sell insurance for the protection of mobile phones and other portable devices.
expanded its business practices and alliances, such as new partnerships in selling extended vehicle warranty in Serbia, making strategic commitments with Halkbank and NLB and establishing a long-term strategic partnership in life insurance with Rade Končar in North Macedonia.
The Group is conquering the markets where it is not directly present by entering into contractual partnerships as an insurance provider that co-creates a full range of various products and services. Its presence in this segment in 2020 included cross-border services in more than 15 EU Member States. In 2021, the Group’s presence was significantly enhanced, both in terms of new markets and insurance groups provided to foreign clients. In addition to business partnerships in Greece, Italy, Norway and Netherlands, new operations were launched in Poland and Denmark.
In parallel with upgrading existing partnerships and entering into new ones, the Group increased information connectivity with its partners and the number of joint marketing campaigns. Information support was provided to the non-life (motor vehicle) insurance sales process in Poland, while partnering with the sales network of Gorenje and Big Bang in Slovenia. Joint marketing activities with some partners, such as Petrol, were strengthened. See Section 12 Sustainable development for more information.
This way, a comprehensive solution to clients’ needs is ensured in addition to their financial security. The main building blocks of any ecosystem are assistance services expanded by related services, which are supported by advanced information and digital solutions. Ecosystems are built in five main areas:
The Triglav Komplet bonus system connects and rewards client loyalty and uniformly completes all main areas.
New providers were included in the well-developed business ecosystem in the field of healthcare services, while upgrading existing partnerships for comprehensive medical treatment of clients. The range of specialist outpatient treatment services was expanded with pulmonary services for adults. Cooperation with primary healthcare service providers was enhanced and two additional consultative committees were established – the Consultative Committee on Comprehensive Care and the Consultative Committee on Prevention and Rehabilitation in Sport.
The services provided by the Company’s partners are complemented by the range of Company’s insurance services, thereby giving potential policyholders what they need at the right time. The Company works with providers of home, car, computer, micromobility, and small animal assistance.
“Development innovations, such as flexible insurance products and the guidelines adopted for the further development of business systems, reflect the direction of development in which the Group is gradually moving from a business model focused on traditional insurance products to a predominantly service-oriented model. These solutions are comprehensive in their internal structure, easy to use and adaptable to the client’s needs. This is, for example, evidenced by our new home insurance product, which achieves high flexibility in guarantees and the scope of coverage, and which also includes assistance services. In the future, we will expand these products within business ecosystems in five key areas, and will continuously support them with information and digital solutions and a joint bonus system. In addition to financial security, we want to provide clients with effective solutions to their problems and offer them an excellent comprehensive experience. Our clients’ trust and satisfaction are closely connected, and in the past year both were rated very high, the highest precisely in the field of assistance services.”
Janko Šemrov
Executive Director at Zavarovalnica Triglav
Service providers and vehicle importers (e.g. a multi-year policy for leasing-financed vehicles) were made available.
Significant progress was made in the insurance of electronic devices, targeting clients in the partner sales network during the purchasing process via a simple and fast solution. With regard to the asset management activity, Triglav Skladi is developing an agile digital ecosystem, which is reflected in the advanced functionalities of its digital platforms.
Identification of client needs and expectations of individual markets was reflected in the development and redesign of insurance products and services. As in previous years, the focus in 2021 was on their simplicity, comprehensiveness and transparency, as well as on strict compliance with legal and other regulatory requirements (see Section 12.5 Governance aspects, Adjustment to regulatory changes for more information). Regular adjustment of insurance terms and conditions, such as tariffs, conditions and guidelines for underwriting, remains crucial for improving underwriting results.
Good practices continued to be transferred from Slovenia to other Group markets, while taking advantage of synergies in the development of uniform regional solutions. Special attention was paid to the transfer of sales practices and experiences in the training of sales staff, in addition to the continued implementation of a modern human resource information system and portal for employees at subsidiaries. See Section 12 Sustainable development for more information about the latter and the high level of client satisfaction achieved by developing processes and products designed to provide a better user experience.
| Carefree and safe living | Financial services | Care for people’s health | Care for small animals’ health | Safe and sustainable mobility |
|---|---|---|---|---|
By redesigning its home insurance product, transparency was increased and full flexibility in the scope and amount of insurance coverage for residential buildings was achieved. A new and important step was taken in focusing on diverse client needs. With a wide range of options, the home insurance product captures the growing expectations of clients, ranging from quick and easy online purchases to advice from insurance agents on tailoring the product to clients’ wishes.
changes (compulsory liability insurance for drones with a take-off weight of over 250g) and online underwriting. The insurance terms and conditions were adjusted to the requirements of reinsurers (inclusion of a cyber risk exclusion clause and a renewed clause on the exclusion of radioactive contamination, chemical, biological, biochemical and electromagnetic weapons).
Insurance products were updated.
“We focus on the client, their needs and experience with the Company’s services. We are aware of the importance of quick access to healthcare services. That is why we are a reliable and responsive provider of healthcare and assistance services, which provide easy access to quality medical treatment. In the development of these services, we implement advanced technologies and actively connect our partner healthcare providers and other experts from various healthcare fields in order to meet the needs and expectations of clients relating to their health. We carefully monitor client satisfaction with our services and we are proud that they recognise our efforts and reward us with a high level of trust.”
Meta Berk Skok
President of the Management Board of Triglav, Zdravstvena zavarovalnica
The dynamic needs of clients and changes in the environment are taken into account by adapting the internal organisation and business processes. Some business processes were automated. In addition to intense promotion of knowledge transfer among employees and the acquisition of digital and communications skills, the option to work from home and working in hybrid teams was made available to even more employees. See Section 12 Sustainable development for more information.
The Company focused on developing a communication platform that provides a process and technical starting point to ensure a uniform and sophisticated client experience. The basis for the continuous upgrading of comprehensive client relationship management and the achievement of an outstanding user experience is being upgraded with the project of establishing a central entry communication point. In this context, the client relationship management (CRM) information system was upgraded in terms of functionality and data. The processes for resolving client claims through various contact points were expanded, greater responsiveness and a shorter time for responding to clients and resolving individual claims were ensured, and the module for conducting marketing campaigns was upgraded.
In relation to non-life insurance sales, IT support was provided to underwriting processes in pet insurance and redesigned home insurance. With regard to life and pension insurance, IT support was upgraded for several products, such as supplemental voluntary pension insurance, group voluntary pension insurance, complementary accident insurance for the elderly and single premium unit-linked life insurance for the elderly, while IT support was provided to some new products, including the single premium unit-linked life insurance product with partial guarantee – Preudarna naložba (Prudent Investment). In the pension insurance segment, IT support was provided for the consolidation between Zavarovalnica Triglav and Triglav, pokojninska družba, and technical frameworks for obtaining GDPR consent and facilitating the design of marketing campaigns were redesigned.
(IT infrastructure) was completed at Triglav Osiguranje, Zagreb and Triglav Osiguranje, Banja Luka, whereas it continued in other subsidiaries. A modern digital platform for the sale of life insurance in the Croatian market began to be implemented. The i.triglav digital office for business users (B2B) was redesigned.
Triglav, Zdravstvena zavarovalnica’s health information office (Zdravstvena točka) with improved processes, especially in relation to the payment of claims and cost reimbursement.
New products and additional covers in several insurance groups were launched, such as motor vehicle liability insurance, home insurance, marine hull insurance and health insurance. The liability of owners or drivers of assisted mobility vehicles was introduced in motor vehicle liability insurance. Home assistance, extended warranty insurance, the Triglav plus complementary health insurance package and extended packages for small businesses and sole traders were launched.
Redesigned home insurance. A customised truck tyre insurance product for Goodyear partners was launched.
while its related functionalities were upgraded and its use expanded to business users in the pension insurance segment.
As part of the systematic monitoring of technological development, the bases were prepared for the selection of a more modern platform as a cloud solution to support the data warehouse. The reporting and analytical system was further developed, and relevant departments were given access to data so as to facilitate the business decision-making process as well as optimise and automate business processes. For a higher level of transparency, new data types were introduced in the data warehouse, including those that enable a better understanding of client needs and expectations.
The development of business digitalisation is directly related to business transformation. In 2021, it continued to be largely influenced by the COVID-19 epidemic. Development processes continued to be carried out in order to facilitate policy underwriting, claim reporting and the digitalisation of back-office processes. Focus was on fostering paperless operations.
The key upgrades in business digitalisation for a better user experience included:
investment solution providers. Due to the market concentration of asset management services within larger banking and insurance groups, more attention is paid to developing a recognisable brand. The Group identified these changes and responded to them through the active and targeted adjustment of its range of products and services.
As part of the financial objectives strategy, Triglav Skladi updated all five of its investment policies. Two packages of investment opportunities were prepared for dynamic and moderate investors to be marketed in 2022. Savings plans as a scheme of regular monthly payments into mutual funds were upgraded, with an emphasis on greater simplicity and a better user experience.
Clients were addressed via various marketing channels, our presence on social networks and the use of digital platforms were strengthened, and a call centre was established.
In 2021, Triglav Skladi, which is also active on the market of Bosnia and Herzegovina, initiated the procedures for launching two new open-end investment funds – Triglav Obveznički and Triglav Globalni dionički.
Triglav, pokojninska družba obtained all licences to provide insurance under the new pension schemes offered by Triglav, pokojninska družba and Zavarovalnica Triglav. The new pension schemes (for group and individual insurance) are implemented by a new group of guarantee funds of the Triglav Pokojnine+ life cycle, consisting of the Delniški kritni sklad Triglav Pokojnine+ (equity guarantee fund), Mešani kritni sklad Triglav Pokojnine+ (mixed guarantee fund) and Zajamčeni kritni sklad Triglav Pokojnine+ (guaranteed guarantee fund).
Partnerships to achieve synergy effects were also strengthened in the field of asset management both at Group level and between its companies.
The centralisation of asset management and the transfer of management of some portfolios to specialised companies within the Group continued at Group level. The procedures for developing common investment bases for individual investment classes were upgraded, and with regard to the investment portfolio an analysis of ESG aspects was included in the investment process. In this way, the Company aims to reduce the risk of investments in terms of sustainable business, while pursuing long-term stable profitability.
and the range of alternative investment classes was further expanded in cooperation with Trigal. In order to increase the return on portfolios, the exposure of alternative investment classes in relation to the risks assumed was slightly increased, while maintaining high portfolio liquidity.
In 2021, Triglav Skladi completed the final phase of Alta Skladi’s business integration. The umbrella fund Krovni sklad Triglav is composed of all subfunds of the Alta umbrella fund as reflected in its expanded offering, which consists of 18 mutual funds, thereby comprehensively addressing and targeting client needs. The successful merger contributed to the strengthening of the investor base and enhancing the sales team to obtain new clients and achieve the planned results, which is already showing success.
The migration of databases and the unification of data in back-office systems were also effectively completed, thereby achieving all strategic objectives of integration.
“We upgraded our approach to clients with revised investment solutions and a personalised range of products and services, which is even more tailored to their needs. We have opened a new, information-supported call centre and expanded the range of channels where information, advice and advanced services are provided to clients. Asset management services are also included in the expanded i.triglav web office. We are pleased to have successfully completed the integration of Alta Skladi with the migration and unification of databases. Furthermore, we are proud to have attracted new clients to invest in mutual funds and use our discretionary mandate services. We are strengthening the brand and positioning it wisely in the asset management activity, which is a strong factor of trust in a period of market concentration. We pursue agility and digitality not only in the development of products and services for clients, but are also equally committed to them in building an open and cooperative culture. Good data management and strengthening business digitalisation will enable us to get even closer to our clients and meet their expectations.”
Benjamin Jošar
President of the Management Board of Triglav Skladi
The Triglav Group implements its mission and strategic guidelines by integrating ESG aspects into its operations, promoting the transition to a sustainable society and carrying out activities in the internal and external environments, thereby joining efforts and commitments to mitigate climate change. In 2021, the Group upgraded its sustainability commitment, adopted the Triglav Group’s strategic ambitions in sustainable development (ESG) and defined several key management processes.
For non-financial reporting, the Group uses Global Reporting Initiative (GRI) standards and their specific guidelines for the financial sector, Sustainability Accounting Standards Board (SASB) standards and an overview of the Group’s progress in contributing to the achievement of the United Nations Sustainable Development Goals (SDGs). The integrated Annual Report of Zavarovalnica Triglav and the Triglav Group for 2021 is thus in line with the requirements of the Companies Act (ZGD-1), which requires public interest entities with an average number of employees greater than 500 on the balance sheet cut-off date to include a non-financial statement in their business report. This content is presented in an integrated way throughout the whole annual report.
Development and sales activities and Section 12 Sustainable development at the Triglav Group.
made is one of the greatest in the region.
The implementation of the Group’s mission was closely linked with its pursuit of sustainability goals, with which 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. In 2021, the Group upgraded its sustainability orientation in environmental, social and governance areas and adopted the Triglav Group’s strategic ambitions in sustainable development (ESG).
At Group level, sustainability-related activities are coordinated and directed by the Sustainable Development Coordinator, monitored by the Compliance and Sustainable Development Committee and decided on by the parent company’s Management Board.
The ambitions regarding the ESG goals for 2025 are divided into four key areas:
See Section 4 Strategy and plans of the Triglav Group for more details about the strategic ambitions in sustainable development (ESG).
To integrate ESG aspects into product development and execute own business processes. By 2025, to reduce the carbon footprint per employee using the location-based method by 15%. To implement the European Green Deal on carbon neutrality by 2050.
| ↑ 57% | more premium written by the Group from products with environmental and social impacts |
|---|---|
| 95% | of electricity consumed at Zavarovalnica Triglav comes from renewable sources (60% at Group level) |
| 2.09 | tCO2 |
is the carbon footprint per employee in the Group and 2.14 tC O2 in Zav arovalnica T riglav (Scope 1 and 2)
| 90,000,000 km | driven with the DRAJV safe driving application |
|---|---|
| ↑ 4.00 | ORVI index, high employee satisfaction |
| ↑ 72 | NPS index, high satisfaction of Zav arovalnica T riglav’s clients |
42% share of women at first and second management levels under the Management Board
To double the share of green and sustainable investments in asset management by 2025.
Adopted key principles for integrating ESG factors into the investment policy (The sustainability aspect of the investment policy)
More comprehensive carbon footprint monitoring within the Triglav Group. Carbon footprint per employee was 2.09 tCO2 (Scopes 1 and 2).
Electric vehicles account for 18% of Zavarovalnica Triglav’s vehicle fleet. Employees may use company bikes and electric scooters.
GRI GS 302, 305, 306, G4 FS8
SASB: FN-IN-410b.1, FN-IN-410b.2
GRI GS 203, 204, 401–405, 413, 414, 417, 418, G4 FS7, FS13, FS14
SASB: FN-IN-270a.4, FN-AC-270a.3
GRI GS 201, 202, 205, 206, 406, 412, 419
“In an extensive review involving almost 2,500 employees and representatives of other key stakeholders, we found that we enjoy their great trust, even when it comes to evaluating sustainability aspects in both of our core businesses. We confirmed that they expect a lot from us, also in the future. The trust that stakeholders place in us is a valuable capital, which we wish to preserve and consolidate. The year was very full of activities related to integrating sustainability aspects into operations. We adopted strategic guidelines and objectives relating to sustainable development, expanded disclosures and management processes, included ESG aspects in the investment policy, renewed carbon footprint measurements, and began to develop new and upgrade existing products and projects that bring environmental and social progress. We are aware that our progress will continue to be full of opportunities and challenges, and will be seen gradually, continuously and at Group level.”
Nina Kelemen
Sustainable Development Manager at the Triglav Group
The Company proactively engages the main identified stakeholders in its activities: clients/policyholders, employees, shareholders/investors, state and supervisory authorities, local communities, suppliers and the media. In this way, mutual trust and understanding are strengthened.
In addition, the Company regularly monitors interests, opinions and proposals by analysing the needs and interests of stakeholders, which is also used to examine the desired disclosures. In 2021, as part of the inclusive process for the modernisation of the double materiality matrix, extensive research on stakeholder interests was carried out, which is presented together with the matrix in Section 2.4 About the report.
As a result of the described processes, knowledge and guidelines are gained, which are taken into account as much as possible in the operations and development of products and services.
GRI GS 102-40, 102-42, 102-43, 102-44
| Stakeholders | Key interests | Engagement method | Engagement results |
|---|---|---|---|
| Clients/policyholders | • Understanding the needs of clients • Rapid claim settlement • Innovative financial/insurance products and services |
In accordance with the adopted strategic ambitions, the Group is incorporating sustainable development principles into the Group’s internal processes and upgrading them. In realizing its responsibility to the natural environment, the Group focuses on areas on which it, as an insurance and financial institution, has a more significant influence. Priority is given to improving energy efficiency and reducing greenhouse gas emissions, in addition to reducing the quantity of waste generated and the consumption of water and other resources; the employees are reminded of these goals on a regular basis. The Group has also encouraged its users for many years to behave responsibly in the natural environment.
Group’s employees are encouraged to use the DR A JV application to reduce fuel consumption and ride safely, providing them with training in safe driving courses and making them aware of the benefits of using a bicycle. When buying new company vehicles, the lower release of carbon dioxide into the atmosphere is taken into account; vehicles with a small engine size and electric and hybrid vehicles are purchased, and a GPS system is used to track company cars.
The Triglav Group has 23 electric vehicles, 25 company bicycles and 15 electric scooters. At Group level, employees used 25 company bicycles to travel to 1,000 business obligations, 15 electric scooters and 23 electric vehicles. The share of business trips at the parent company where electric vehicles are used is increasing, reaching 14% in 2021. Vans were used four times a day for organised regular transport between three locations in Ljubljana, and in cooperation with an external partner employees can use an electric car sharing service. This is a pilot sustainable mobility project, with which Company vehicles with low mileage are available for sharing in Ljubljana.
The Group companies are reducing paper consumption with network printers and double-sided printing, support applications and electronic archiving, digital business processes and e-business. They took steps to move towards paperless operations and encourage employees not to use the printer if not necessary. The decrease in paper consumption was also influenced by the increased volume of work from home due to the COVID-19 epidemic.
The sustainable business criteria are part of the supplier selection process (see Procurement practices in Section 12.4.4 Responsibility to suppliers).
In 2021, a more comprehensive approach to calculating the Group’s carbon footprint was taken, defining the targets and measures to reduce it. The calculation was prepared in accordance with the methodology for calculating Zavarovalnica Triglav’s carbon footprint, defining in greater detail the scope and limits, the method of data collection and analysis, and emission factors.
For year-on-year comparisons and 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). According to the location-based method, all Group companies were included in the calculation of the carbon footprint which are fully consolidated and have office space or employees and therefore meet the materiality criterion.
The methodology follows the guidelines of the internationally recognised Greenhouse Gas Protocol and takes into account the emission factors of the international database, which classifies emissions into three scopes (Scopes 1, 2, 3). The calculation of the Group’s carbon footprint included the following scopes and categories of emissions:
GRI GS 103-1, 103-2, 103-3 |
Based on an independent verification carried out in accordance with ISO 14064-3, the verifier, SIQ Ljubljana, gave a positive opinion on the carbon footprint report of Zavarovalnica Triglav d.d. and the Triglav Group and confirmed that the report:
The Group’s largest source of greenhouse gas emissions are Scopes 1 and 2 (a 60% share). They are created by the consumption of electricity, heating and fuel for cars owned or leased by the companies included in the calculation.
| Quantities of specific activities | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|
| Triglav Group | |||||
| Scope 1.1 – Consumption of energy products from own capacities | 458 | 557 | 810 | 82 | 69 |
| Scope 1.2 – Fuel consumption of company cars | 1,766 | 1,332 | 1,687 | 133 | 79 |
| Scope 1 – Direct GHG emissions | 2,224 | 1,889 | 2,497 | 118 | 76 |
| Scope 2 – Indirect GHG emissions (location-based) | 8,773 | 8,369 | 8,630 | 105 | 97 |
| 5,849 | 8,243 | 7,986 | 71 | 103 |
|---|---|---|---|---|
| 1,101 | 1,125 | 1,963 | 98 | 57 | |
|---|---|---|---|---|---|
| 917 | 909 | 705 | 101 | 129 | ||
|---|---|---|---|---|---|---|
| 195 | 172 | 47 | 113 | 366 |
|---|---|---|---|---|
| 4,501 | 4,207 | 6,565 | 107 | 64 | |
|---|---|---|---|---|---|
| 93 | 338 | 431 | 27 | 78 |
|---|---|---|---|---|
| 526 | 254 | 364 | 207 | 70 | ||
|---|---|---|---|---|---|---|
| 9 | 23 | 24 | 39 | 95 |
|---|---|---|---|---|
| 7,342 | 7,028 | 10,098 | 104 | 70 | |
|---|---|---|---|---|---|
| 10,997 | 10,258 | 11,127 | 107 | 92 | ||
|---|---|---|---|---|---|---|
| 18,339 | 17,286 | 21,225 | 106 | 81 | |
|---|---|---|---|---|---|
| 2.09 | 1.93 | 2.11 | 108 | 91 | ||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | |
|---|---|---|---|---|---|
| 187 | 178 | 393 | 105 | 45 |
|---|---|---|---|---|
| 115 | 159 | 252 | 72 | 63 | ||
|---|---|---|---|---|---|---|
| 301 | 337 | 645 | 89 | 52 | |
|---|---|---|---|---|---|
| 4,503 | 4,351 | 4,379 | 103 | 99 | |
|---|---|---|---|---|---|
| 1,589 | 4,173 | 4,318 | 38 | 97 | |
|---|---|---|---|---|---|
| 861 | 886 | 1,369 | 97 | 65 | |
|---|---|---|---|---|---|
| 602 | 398 | 315 | 151 | 126 | ||
|---|---|---|---|---|---|---|
| 85 | 68 | 20 | 125 | 340 |
|---|---|---|---|---|
| 2,791 | 2,393 | 3,463 | 117 | 69 | |
|---|---|---|---|---|---|
| 27 | 49 | 69 | 55 | 71 |
|---|---|---|---|---|
| 229 | 209 | 322 | 110 | 65 | ||
|---|---|---|---|---|---|---|
| 3 | 8 | 8 | 34 | 99 |
|---|---|---|---|---|
| 4,598 | 4,013 | 5,565 | 115 | 72 | |
|---|---|---|---|---|---|
| 4,805 | 4,689 | 5,023 | 102 | 93 | |
|---|---|---|---|---|---|
| 9,403 | 8,701 | 10,588 | 108 | 82 | ||
|---|---|---|---|---|---|---|
| 2.14 | 2.09 | 2.23 | 102 | 94 | ||
|---|---|---|---|---|---|---|
With the adoption of the internal methodology for calculating the carbon footprint in 2021, the data capture for Zavarovalnica Triglav and the Triglav Group changed, thus data for 2019 and 2020 were also adjusted.
The Scope 1 carbon footprint increased by 18% at Group level in 2021 as a result of higher fuel consumption for company vehicles, while at Zavarovalnica Triglav it decreased by 11% due to lower fuel consumption for company vehicles.
The Scope 2 carbon footprint increased by 5% at Group level according to the location-based method and by 3% at Zavarovalnica Triglav. In 2021, the Company only purchased electricity from renewable sources, therefore the Group’s Scope 2 carbon footprint decreased by 29% according to the market-based method, which takes into account emission factors obtained from the energy supplier, and that of the Company by 62%. The share of green electricity for the premises owned by the Company was 100%.
Scope 3 carbon footprint was higher by 4%, of which the largest share of emissions is accounted for by employees commuting to work, business trips, and purchases of computer equipment. The Company reduced emissions from business trips by almost 3%. A significant share of Scope 3 emissions is attributed to employees commuting to work. These emissions increased by 7% at Group level and by 17% at the parent company as there was no closure of the economy in 2021. Due to the severe epidemic situation, employees used public transport to a lesser extent.
The guidelines aimed at reducing the consumption of energy products used for heating and cooling as well as electricity were taken into account in each renovation of the Group’s business premises. LED lighting is installed in all new business premises and on advertising signs.
The Group consumed 1,829 tonnes of oil equivalent (TOE) of energy on heating, cooling, lighting and electrical and electronic equipment, up by 8% relative to 2020, while the Company increased its energy consumption by 7%. Consumption of heating oil and hot water increased the most at the parent company. The increase is due to the smaller scope of closure of the economy and the consequent greater presence of employees in the office. Comparison with 2020 is difficult due to the challenging epidemiological situation.
| Energy product | Unit | Triglav Group Quantities | Index | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|---|---|
| Heating water | kWh | 4,967,025 | 114 | 4,359,684 | 4,411,103 | 114 | 99 | |
| Fuel oil | l | 27,388 | 48 | 57,342 | 89,790 | 48 | 64 | |
| Gas | kWh | 1,656,589 | 100 | 1,660,892 | 2,581,140 | 100 | 64 | |
| Wood pellets | kg | 51,810 | 110 | 47,000 | 26,000 | 110 | 181 | |
| Electricity | kWh | 14,086,990 | 110 | 12,841,319 | 13,382,997 | 110 | 96 | |
| Green electricity | kWh | 8,466,599 | 117 | 345,961 | 117,659 | 2,447 | 294 | |
| Green electricity | % | 60.10 | 2,231 | 2.69 | 0.88 | 2,231 | 306 |
| Energy Product | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|
| Heating water kWh | 4,045,257 | 3,629,474 | 3,741,053 | 111 | 97 |
| Fuel oil l | 7,760 | 6,126 | 23,414 | 127 | 26 |
| Gas kWh | 879,589 | 843,736 | 1,732,335 | 104 | 49 |
| Electricity kWh | 8,890,970 | 8,438,062 | 8,404,232 | 105 | 100 |
| Green electricity kWh | 8,446,421 | 345,961 | 94,123 | 2,441 | 294 |
| Green electricity % | 95.00 | 4.10 | 1.40 | 2,317 | 293 |
With the adoption of the internal methodology for calculating the carbon footprint in 2021, the data capture for Zavarovalnica Triglav and the Triglav Group changed, thus data for 2019 and 2020 were also adjusted.
| TOE (ton equivalent) | Index | Triglav Group | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|---|
| Hot water | 427 | 375 | 379 | 114 | 99 | ||
| Fuel oil | 24 | 49 | 77 | 48 | 64 | ||
| Gas | 146 | 147 | 228 | 127 | 64 | ||
| Wood pellets | 21 | 19 | 11 | 110 | 181 | ||
| Electricity | 1,211 | 1,104 | 1,151 | 110 | 96 | ||
| Green electricity | 728 | 30 | 10 | 2,447 | 294 | ||
| Total | 1,829 | 1,694 | 1,846 | 108 | 92 |
| 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | |
|---|---|---|---|---|---|
| Hot water | 348 | 312 | 322 | 111 | 97 |
| Fuel oil | 7 | 5 | 20 | 127 | 26 |
| Gas | 78 | 74 | 153 | 104 | 49 |
| Electricity | 764 | 726 | 723 | 105 | 100 |
| Green electricity | 726 | 30 | 8 | 2,441 | 368 |
| Total | 1,197 | 1,117 | 1,217 | 107 | 92 |
The quantity of disposed waste at the Triglav Group and Zavarovalnica Triglav.
Waste separation and disposal depends on the waste management system at the local level or at the level of the country in which the Group members operate. Full waste separation is carried out in Slovenia, whereas in other countries waste separation and disposal is not yet fully regulated, therefore the quantity and type of waste are often not available. In commercial buildings in Slovenia, employees are encouraged in various ways to use less packaging and better separate waste.
Company. As the share of non-recycled waste increased slightly at Group level, in 2022 awareness will continue to be raised about the importance of appropriate waste separation and disposal.
The average daily consumption of office paper (A4 format) in sheets per employee fell to 14 at Group level (compared to 45 in 2020) and to 10 at the Company (compared to 18 in 2019), which was also due to working from home.
| Unit | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Paper | kg | 71,139 | 113,209 | 85,443 | 63 | 132 | 35,806 | 65,319 | 38,818 | 55 | 168 | ||
| Biological waste | kg | 24,669 | 12,968 | 12,567 | 190 | 103 | 20,727 | 10,059 | 9,849 | 206 | 102 | ||
| Packaging | kg | 57,883 | 43,677 | 53,328 | 133 | 82 | 37,120 | 24,851 | 29,929 | 149 | 83 | ||
| Glass | kg | 1,438 | 11,093 | 5,396 | 13 | 206 | 651 | 7,546 | 971 | 9 | 778 | ||
| Mixed waste | kg | 431,965 | 346,780 | 415,353 | 125 | 83 | 174,971 | 137,730 | 180,327 | 127 | 76 | ||
| Electrical equipment and other | kg | 64,455 | 135,026 | 5,861 | 48 | 2,304 | 64,000 | 134,958 | 5,852 | 47 | 2,306 | ||
| Total recycled waste | kg | 155,129 | 180,946 | 156,734 | 86 | 115 | 94,303 | 107,775 | 79,566 | 87 | 135 | ||
| Total waste intended for removal | kg | 496,420 | 481,805 | 421,213 | 103 | 114 | 238,971 | 272,687 | 186,179 | 88 | 146 | ||
| Total waste generated | kg | 651,549 | 662,752 | 577,947 | 98 | 115 | 333,274 | 380,463 | 265,745 | 88 | 143 | ||
| Water consumption | m3 | 58,659 | 65,700 | 68,847 | 89 | 95 | 19,116 | 23,342 | 23,071 | 82 | 101 | ||
| Waste in ton/employee | 0.12 | 0.12 | 0.11 | 99 | 114 | 0.15 | 0.17 | 0.12 | 88 | 144 |
With the adoption of the internal methodology for calculating the carbon footprint in 2021, the data capture for Zavarovalnica Triglav and the Triglav Group changed, thus data for 2019 and 2020 were also adjusted.
| Triglav Group | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|
| Total paper consumption* | 686,969 | 629,639 | 817,114 | 109 | 77 |
| Paper consumption by employees (A4)** | 94,998 | 312,769 | 369,200 | 30 | 85 |
| Average daily office paper consumption per employee (sheets) | 14 | 45 | 53 | 30 | 85 |
| 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | |
|---|---|---|---|---|---|
| Total paper consumption* | 278,571 | 280,839 | 409,710 | 99 | 69 |
| Paper consumption by employees (A4)** | 29,128 | 53,214 | 72,090 | 55 | 74 |
| Average daily office paper consumption per employee (sheets) | 10 | 18 | 25 | 55 | 74 |
With the adoption of the internal methodology for calculating the carbon footprint in 2021, the data capture for Zavarovalnica Triglav and the Triglav Group changed, thus data for 2019 and 2020 were also adjusted.
** Includes A4 paper consumption for internal purposes.
39
The pandemic changed the needs of stakeholders in work processes, so the use of certain types of material and services considerably decreased (paper, brochure printing services, cards, etc.). This had a direct impact on the reduction of waste in the environment, and the need for digitalisation of processes greatly increased. In procurement procedures, the focus was on using recycled paper for printing information materials and products from recycled and more environmentally friendly materials and services where applicable. In 2021, the Company bought 95% of electricity generated from renewable sources. Employees’ children received wooden toys and products made of recyclable material (paper, wood, glass) from Dedek Mraz (Grandpa Frost). Due to the pandemic, the purchase of materials to ensure a healthy and safe working environment (protective masks, disinfectants, tests) increased significantly in the last two years, but they were not recyclable.
| Project | Impact |
|---|---|
| Planting of indigenous Slovenian tree species Gozd srčnosti (Wholehearted Woods), partner Slovenski državni gozdovi d.o.o. | Raising awareness of the importance of restoring Slovenian forests. The result |
The Triglav Skladi project is a young forest on Uršlja gora, where seedlings of indigenous Slovenian tree species are planted.
Sustainability criteria are also taken into account when designing insurance products, and each product is properly assessed in accordance with the internal methodology of sustainability impact assessment. The development of insurance products thus takes into account sustainability factors and criteria already in the process of their approval. Described below are the most important services and products that promote social and environmental benefits.
• In partnership with the Slovenian Rural Youth Association, the Company raises awareness of young farmers about risk management in agriculture and forestry and encourages innovation (the IMK project = Innovative Young Farmer of the Year).
policy. In this way, they can monitor the growth of their crops and the state of drought exposure on a daily basis. This insurance product is also being launched in subsidiaries outside Slovenia (Croatia, Serbia and North Macedonia).
• Triglav Skladi’s Triglav Zeleni equity socially responsible fund invests in the shares of leading companies in the field of sustainable development and corporate social responsibility. It is intended for anyone who believes in a sustainable future and wishes to accumulate part of their savings by investing in innovative and socially responsible companies.
Total written premium from insurance and investment products in the Group that promote social and environmental benefits amounted to EUR 65.9 million, a 57% increase compared to the preceding year. Of this, written premium related to energy efficiency and low-carbon technology amounted to EUR 2.9 million, up by 25% relative to the year before.
Solar power plant insurance products are designed to promote the use of energy from renewable sources.
| Written premium from the Triglav Group’s insurance products that promote social and environmental benefits and Triglav Zeleni fund’s assets under management | 2021 | 2020 | Index |
|---|---|---|---|
| Animal insurance | 7,720,199 | 3,925,759 | 197 |
| Crop insurance | 13,392,760 | 11,140,631 | 120 |
| Electric vehicle insurance | 1,920,092 | 1,429,155 | 134 |
| Micromobility insurance | 484,875 | 475,136 | 102 |
| Solar power plant insurance | 537,912 | 459,248 | 117 |
| Triglav Zeleni Fund | 41,833,991 | 24,556,690 | 170 |
| Total | 65,889,829 | 41,986,619 | 157 |
In accordance with the requirements of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector, the Company published in March a document entitled Sustainability Aspect of Investment Policy, which includes a description of sustainability risks and an overview of adverse sustainability impacts. The Company makes investment decisions responsibly and takes into account the sustainability aspect, in addition to focusing on maximum security and long-term growth of assets under management. Thus, environmental, social and governance factors (ESG) are included in the Company’s investment processes with the aim of ensuring long-term profitable investments. Sustainability risk means an environmental, social or governance event or condition that could have a material negative impact on the value of investment. In the investment process, the Company pursues the social corporate responsibility guidelines developed by the Organisation for Economic Co-operation and Development (OECD) and the principles for responsible investment, supported by the United Nations.
Presented below are some of the proportions of exposure to taxonomy-eligible and taxonomy non-eligible economic activities according to the EU Taxonomy Regulation in total assets and non-life insurance activities. The proportions presented partially comply with Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852.
Business Report
Sustainable development at the Triglav Group
Risk Management
Accounting Report
| Triglav Group | Proportion | Value in EUR |
|---|---|---|
| The proportion in total assets of exposures to taxonomy non-eligible economic activities, except exposures to central governments, central banks and supranational issuers excluded from the calculation of the numerator and denominator | 85% | 2,025,967,171 |
| The proportion in total assets of exposures to taxonomy eligible economic activities, except exposures to central governments, central banks and supranational issuers excluded from the calculation of the numerator and denominator | 15% | 346,600,213 |
| The proportion in total assets of exposures to taxonomy eligible economic activities of financial undertakings | 4% | 88,379,241 |
| The proportion in total assets of exposures to taxonomy eligible economic activities of non-financial undertakings | 11% | 255,924,963 |
| Exposures to central governments, central banks and supranational issuers and derivatives | 58% | 1,382,189,062 |
| Exposures to undertakings that are not obliged to publish non-financial information pursuant to Article 19a or 29a of Directive 2013/34/EU | 41% | 1,521,997,653 |
| Taxonomy eligible non-life insurance economic activities | 91% |
|---|---|
| Taxonomy non-eligible non-life insurance economic activities | 9% |
Estimates of the Bloomberg information system were used for the calculation.
Derivatives are excluded from the numerator for calculating non-eligible and eligible exposures.
Exposures to investments held in respect of life insurance contracts where the investment risk is borne by the policyholders are excluded from the calculation of the numerator and denominator of all exposure calculations.
The Group’s strategic ambitions in sustainable development (ESG) fully follow the goals adopted in the context of the Paris Agreement to limit global warming and the European Green Deal on reducing greenhouse gas emissions by 2030 and reaching carbon neutrality by 2050.
The Group will pursue goals for the transition to a climate neutral and circular economy resilient to climate change in both activities (insurance and asset management). In carrying out its activities, the Group will promote sustainable economic activity, energy efficiency and energy from renewable sources with an aim to reduce greenhouse gas emissions.
See Section 12.1 Implementation of strategic guidelines and sustainable development goals of the Triglav Group and Zavarovalnica Triglav for more information.
Responsibility to clients and client focus remain one of the main strategic guidelines of the Triglav Group. A lot of effort is invested in good long-term relationships with clients and contractors, monitoring developments in the insurance markets, determining the requirements and needs of clients, and professionally and properly addressing their comments and requirements. On this basis, the Company adapts its operations, improves business models and processes, and develops new products and services.
must meet the defined client 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 or its distribution is appropriately adjusted.
The Company informs clients in a professional and transparent manner, enabling easy access to all the necessary information about the Company’s products and services. The Company aims to ensure that its insurance and other general terms and conditions are appropriate and fair and that clients are treated in a proper and equal manner. Transparency, comprehensibility and availability of products and services is ensured already during their development, in addition to paying a lot of attention to after-sales services. Promotional materials and documents are prepared in a transparent and comprehensive manner. No misleading, aggressive, insulting, shocking or other inappropriate practices are used in promotional activities and the marketing of products and services. The Company also follows the recommendations of the Slovene Consumers’ Association for improving financial literacy. Any complaints are resolved quickly within the prescribed procedures. The Company fully complies with consumer protection legislation and the special requirements with regard to client information when concluding financial and insurance contracts remotely. It follows the guidelines of supervisory bodies and adopted the policy of management and control of insurance services and products and their distribution. Every care is taken that clients are informed about all insurance products. The protection of personal data and client rights is one of the most important principles to which an insurance company adheres in its operations.
Digitalisation, the use of new technologies, continuous business optimisation and upgrading facilitated access to products and services and resulted in simplified client operations. Continuous improvements and numerous activities in this area are also described in Section 11.1.4 Development of insurance products and services.
The two applications enable comprehensive online service, the management of mutual funds and remote investment solutions. The Zaslužite si ve č (Earn More) communication platform provides educational video content, guides (tutorials) and e-manuals, thereby supporting learning about and becoming aware of alternative investment solutions and helping to raise awareness and financial literacy.
42 GRI GS 103-1, 103-2, 103-3 |
In 2021, mobile appraisal units were set up after four major hail storms in Slovenia, which carried out a total of over 2,200 appraisals of damaged vehicles.
Our services. The results obtained are also helpful in designing employee training, upgrading claim applications and monitoring sales.
In 2021, client satisfaction measurement according to the Net Promoter Score (NPS) methodology was extended to include additional contact points, e.g. the Client Support Centre and booking an online appointment with an agent. Client satisfaction at the Client Support Centre is monitored via various communication channels.
In 2021, the NPS index for Zavarovalnica Triglav rose to 72% (4 percentage points more than the year before), reaching the highest score to date. The result is mainly due to improved satisfaction with taking out insurance, which grew by 7 percentage points. Assistance services again reached the highest score.
Measuring satisfaction with the NPS index is carried out in all Group insurance and financial companies in Slovenia, Croatia and North Macedonia. In 2021, it was introduced at Triglav Osiguranje, Sarajevo and Triglav Osiguranje, Belgrade. NPS measurement related to taking out insurance and reporting, paying and rejecting claims was established in Serbia and North Macedonia. In Bosnia and Herzegovina, it takes place after paying out a claim. The introduction of NPS measurement in other subsidiaries will continue in 2022.
Employees are informed about the results of client satisfaction measurement, breaking down the data in detail. Particular focus is placed on identifying and resolving negative client experiences, as this improves not only client satisfaction but also work processes, services and products. In 2021, the features of tracking the settlement of an individual claim, uniform recording of individual critical events, submitting to competent departments and monitoring the settlement process and measures were added.
Client satisfaction is also measured at the Zdravstvena točka health information office and healthcare service providers. Client feedback and scores exceed target values. All clients who left negative feedback are contacted. The range of products and services is adapted based on the feedback, which is also communicated to partner healthcare providers. Every year, the best rated partner healthcare institutions are awarded special awards of excellence; in 2021, the special title of Ambassador of Excellence was introduced for providers who were awarded five years in a row.
In asset management, a recognisable brand was built and client satisfaction was improved through active and targeted tailoring of the product range. Clients were addressed via various marketing channels, our presence on social networks and the use of digital platforms were strengthened, a call centre was set up and client satisfaction measurement according to the NPS methodology was established.
well as directly from agents in the field. A book of complaints and compliments is available at points of sale, which are also recorded in an application. A total of 2 such complaints and 11 compliments were received in 2021. Complaints and compliments are regularly monitored, resolved and examined.
Zavarovalnica Triglav received 2,698 complaints (8% less than the year before), the majority (93%) in relation to non-life insurance. A total of 4% of complaints related to life insurance, and the remaining (3%) to other areas.
Twice a year, the Management Board reviews the report on outsourcers’ satisfaction. The effectiveness of marketing and communication campaigns and events is assessed with key performance indicators (KPIs).
In 2021, measurements of visibility, likeability, understanding and purchase decisions were carried out for marketing and communication campaigns Avto Mobilno, accident insurance for children and youth, life insurance and the analysis of knowledge and satisfaction of the ninth Triglav Run.
For the needs of the development of insurance products and services, quantitative research was carried out using the CAWI method for small animal insurance. The suitability of the product for sole traders, the user experience of the application for reporting claims remotely, the satisfaction of agents with the rewarding methods and system and the Naj prodajnik (Top Agent) event were checked.
The shopping habits of consumers of insurance are monitored with a quantitative analysis of shopping factors (All insurance), which takes place in the entire insurance market and provides a view of the market and end consumer.
Zavarovalnica Triglav is one of the most reputable brands in the Slovenian market and ranks among the top brands in terms of reputation on markets outside Slovenia, which is quite an achievement. The Group members are recognised as reputable companies with a distinctive, transparent style of communication with their clients. The Group is known well for its comprehensive range of insurance products and efficient claim settlement, including the payment of indemnities and benefits. The recall of the Triglav Skladi brand and its first selection set improved significantly in 2021.
The reputation of the Triglav brand and the Triglav Group is built using an in-depth knowledge of client behaviour and needs, together with examining upcoming trends. Brand strength is increased through a comprehensive approach to branding at corporate and product levels. Brand identity is implemented on all target markets.
Marketing approaches and campaigns are implemented in compliance with statutory and other consumer protection regulations. No proceedings for violations related to marketing communication were initiated against Zavarovalnica Triglav and its subsidiaries in 2021.
In the non-life insurance segment, the sale of the redesigned home insurance product and the AvtoMobilno campaign were promoted. A brand new marketing strategy for small animal insurance (insurance for dogs and cats) was developed.
In the life insurance segment, communication focused on whole life insurance and redesigned complementary serious illness insurance products.
of c e were presente d with strategic ally and comprehensively designed creative solutions that also at trac ted new user s. Agricultural insurance, insurance for motorc yclists and t rac tor operator s, Pazi name! (Watch Out for Me!) accident insurance, travel insu rance, insurance for young drivers and DR A JV challenges were acti vely promo ted. Two ex tensi ve campaigns we re de signed to i ncreas e the vi sibilit y o f health in surance pr oduc ts an d the Zdravs tven a toč kaassistance centre.
46 SASB: FN-IN-270.3 |
47 SASB: FN-IN-270a.1 |
In the health insurance segment, two major marketing and communication campaigns were implemented with the aim of raising the recognisability of health insurance and Triglav Zdravje. In addition to product benefits, the benefits of related services, such as the Zdravstvena točka assistance centre and the wide network of partners – top healthcare providers, were presented.
In asset management, the comprehensive Gozd srčnosti (Wholehearted Woods) campaign was designed for the promotion of the Triglav Zeleni mutual fund (see Section 12.3.3 for further details). The whole campaign was designed emotionally and with several messages: by planting trees we help to restore forests, while dedicating trees to those who mean the world to us.
Insurance products were promoted. In North Macedonia, health insurance products were promoted by launching, among others, the SOS package for voluntary health insurance, #BeFit#BeHealthy#BeSecure prize contest and the Fit Kit mobile exercise application.
In Montenegro, the promotion of new insurance for microvehicles, which is a new product in this insurance market, was at the forefront. In December, home insurance was promoted with the Praznični Dome moj (My Festive Home) corporate campaign. Over 1,776 children’s drawings of their home were received, increasing the reach of insurance literacy activities.
Triglav Lab, the technological centre and training ground of the Group’s digital business, continues to play an important and dynamic role in strengthening the brand in the field of innovation and advanced solutions. It enables the Company to act as a trusted partner in several areas, such as preventive actions, financial literacy and cooperation with athletes. A total of 80 events (in-person and virtual), training courses, workshops, seminars and video recording sessions to promote insurance literacy, risk awareness, presentation of products and services were held in 2021, which were attended by over 2,000 participants.
Young people were addressed primarily through digital content about saving, traffic safety, sports, health, etc. For other target groups, several preventive and awareness-raising events related to the Company’s products were held in cooperation with partners LIT Hekaton, AmCham Summer School, Fanfara, specialist doctors, mountain rescuers, Alfakan and others.
As a partner of the Matica mountaineering society, Zavarovalnica Triglav developed the conceptual design and carried out the first phase of branding on Kredarica, which included a number of solutions. A virtual tour of ski jumping in Planica is only part of the results of many years of cooperation between Zavarovalnica Triglav and the organisers of this internationally renowned sporting event. Despite the situation marked by COVID-19-related measures, the Company remained true to tradition and provided free and safe watching of ski jumps in a virtual environment. To boost the sports enthusiasm for ski jumping on the giant hill, a campaign was designed to promote the remote cheering for the best ski jumpers at the World Cup hosted by Planica.
Initiative, responsibility, and cooperation. A uniform organizational culture supports the achievement of strategic objectives by pursuing corporate values, rules, methods of implementing processes, behavior, and methods of work of employees. The desired organizational culture helps to build a reputable employer brand.
The Triglav Group had 5,264 employees as at 30 December 2021, down by 52 compared to the preceding year. The number of employees decreased the most at Triglav Osiguranje, Belgrade as a result of the decline in the number of fixed-term employees due to the COVID-19 pandemic.
Healthy, satisfied and engaged employees are key to achieving the Group’s high strategic and business objectives. For this purpose, numerous employee management activities are carried out, taking care for a stimulating environment that provides employees with the possibility of continuous development, training and career and personal growth. Special attention is paid to prudent selection of new employees and their onboarding. The Company values new knowledge, digital skills and cooperation, as well as promotes innovation, multiculturalism, and transfer of experience and knowledge through intergenerational cooperation.
A uniform organizational culture is being created at Group level based on constructive behaviour, teamwork.
| Year | Number of Employees |
|---|---|
| 2019 | 5,281 |
| 2020 | 5,316 |
| 2021 | 5,264 |
The share of employees in strategic activities increased. The majority, i.e. 87.9%, of all employees worked in the insurance activity, up by 0.7 percentage point compared to the year before. Employees in asset management activity, whose share increased by 0.1 percentage point, represented 2.3% of all employees; the share of employees in other activities decreased by 0.8 percentage point.
| Slovenia | 51.4% |
|---|---|
| Serbia | 14.5% |
| Bosnia and Herzegovina | 11.0% |
| Croatia | 10.4% |
| Montenegro | 7.2% |
| North Macedonia | 5.5% |
| Insurance | 87.9% |
|---|---|
| Asset management | 2.3% |
| Other | 9.8% |
| 2019 | 55.2% |
|---|---|
| 2020 | 56.4% |
| 2021 |
| Triglav Group | Zavarovalnica Triglav | |||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |
| Type of employment | Number | Percentage | Number | Percentage | Number | Percentage |
| Part-time | 221 | 4.2 | 251 | 4.7 | 267 | 5.1 |
| Full-time | 5,043 | 95.8 | 5,065 | 95.3 | 5,014 | 94.9 |
| Total | 5,264 | 100.0 | 5,316 | 100.0 | 5,281 | 100.0 |
| Type of employment agreement | Number | Percentage | Number | Percentage | Number | Percentage |
| Fixed-term | 623 | 11.8 | 779 | 14.7 | 793 | 15.0 |
| Permanent | 4,641 | 88.2 | 4,537 | 85.3 | 4,488 | 85.0 |
| Total | 5,264 | 100.0 | 5,316 | 100.0 | 5,281 | 100.0 |
A total of 51.4% of all Group employees are employed in Slovenia, up by 0.7 percentage point relative to the preceding year. The share of employees in Serbia decreased the most, by 1.2 percentage points.
The turnover rate increased in both the Triglav Group and Zavarovalnica Triglav; it was 13.2% in the Group (compared to 11.7% in 2020) and 4.1% at the parent company (compared to 3.4% in 2020). Most leavers were aged over 56 years (due to retirement) and 36 – 40 years. Most new hires were aged between 26 and 40 years.
The average age of employees in the Group rose slightly to 44.67 years (compared to 44.38 years in 2020); in the parent company it was 46.55 years (compared to 46.33 years in 2020). The average age of Zavarovalnica Triglav’s Management Board members was 48.66 years.
In Slovenia, senior management is hired from the local community, as is the majority of senior management in the markets outside Slovenia.
Business Report Sustainable development at the Triglav Group Risk Management Accounting Report
In terms of gender, the share of women among employees increased slightly to 53.9%. The proportion of women among the members of the Management Board of Zavarovalnica Triglav was 33.3%.
In all employee categories, activities and countries where the Group operates, the basic salary of men and women is equal.
A total of 89.3% of Group employees were employed under the collective agreement (compared to 90.7% in 2020) and 91.1% in the parent company (compared to 91.4% in 2020). The remaining 10.7% were employees with individual agreements.
the same for all employees, be it permanent full-time employees, fixed-term employees or part-time employees.
| Share in % | Index | Triglav Group | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|---|
| Women employees to total employees ratio | 53.9 | 53.5 | 53.5 | 101 | 100 | ||
| Proportion of women at the first management level under the Management Board | 45.3 | 45.8 | 46.9 | 99 | 98 | ||
| Proportion of women at first and second management levels under the Management Board | 42.0 | 42.1 | 43.5 | 100 | 97 | ||
| Women in management to women employees ratio | 71.3 | 73.5 | 75.2 | 97 | 98 |
| Share in % | Index | Zav arovalnica Triglav | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | |
|---|---|---|---|---|---|---|---|---|
| Women employees to total employees ratio | 50.8 | 50.4 | 50.5 | 101 | 100 | |||
| Proportion of women on the Management Board of Zav arovalnica Triglav | 33.3 | 33.3 | 33.3 | 100 | 100 | |||
| Proportion of women on the Supervisory Board of Zav arovalnica Triglav | 0.0 | 0.0 | 11.1 | 0 | 0 | |||
| Proportion of women at the first management level under the Management Board | 25.9 | 25.9 | 32.1 | 100 | 81 | |||
| Proportion of women at first and second management levels under the Management Board | 38.8 | 37.9 | 36.8 | 102 | 103 | |||
| Women in management to women employees ratio | 75.6 | 74.7 | 72.4 | 101 | 103 |
| Age group | Triglav Group | Zav arovalnica Triglav |
|---|---|---|
| From 18 to 19 | Number: 6 Percentage: 0.1 | Number: 1 Percentage: 0.0 |
| From 20 to 25 | Number: 125 Percentage: 2.4 | Number: 21 Percentage: 0.9 |
| From 26 to 30 | Number: 371 Percentage: 7.0 | Number: 94 Percentage: 4.2 |
| From 31 to 35 | Number: 569 Percentage: 10.8 | Number: 194 Percentage: 8.6 |
| From 36 to 40 | Number: 771 Percentage: 14.6 | Number: 264 Percentage: 11.8 |
| From 41 to 45 | Number: 885 Percentage: 16.8 | Number: 393 Percentage: 17.5 |
| From 46 to 50 | Number: 882 Percentage: 16.8 | Number: 422 Percentage: 18.8 |
| From 51 to 55 | Number: 821 Percentage: 15.6 | Number: 455 Percentage: 20.3 |
| 56 and over | Number: 834 Percentage: 15.8 | Number: 402 Percentage: 17.9 |
| Total | 5,264 (100.0) | 2,246 (100.0) |
| Triglav Group | Zav arovalnica Triglav | |
|---|---|---|
| Men | 2,426 (46.1) | 1,104 (49.2) |
| Women | 2,838 (53.9) | 1,142 (50.8) |
| Total | 5,264 (100.0) | 2,246 (100.0) |
55 GRI GS 405-1 |
56 GRI GS 405-2 |
57 GRI GS 102-41 |
58 GRI GS 401-2 |
59 GRI GS 405-1, SASB: FN-AC-330a.1 |
The training policy is aimed at improving employees’ expertise and skills, which is of key importance in achieving the Group’s strategic objectives.
Employees were provided with numerous training courses in various fields. Special attention was paid to the internal transfer of knowledge, as 61% of in-house training was carried out by our employees, i.e. in-house lecturers. In order to prevent possible infections, most of in-house training courses were held online, either as webinars or e-learning (self-learning). At the parent company, focus was on insurance topics, sales training and business communication. In addition to regular training, the following took place:
• the Sales Academy programme for agents, which also included 75 new agents and the first group of sales officers, while all heads of sale attended the Sales Management Academy;
• the system for obtaining a leadership license was set up at the parent company for training, education and coaching, designed for leaders to improve their leadership skills;
• the compulsory training of 20 teaching hours for obtaining a license to conduct insurance agency business (i.e. a license) for 1,129 employees at the parent company;
• a total of 7,249 hours of in-house training courses were held at the parent company for employees of subsidiaries;
• the leadership potential development programme for young promising employees;
• online training for employees at external points of sale, where topics about insurance products and consumer protection were at the forefront.
The total number of functional training hours increased by 29% and, despite the considerably changed situation, almost reached the 2019 level. Employees within the Group participated in training 31 hours on average, up by 30% compared to 2020. Zavarovalnica Triglav’s employees participated in training 47 hours on average (index 118), most in the age group up to 25 years due to onboarding. At the Company, men participated in training on average two hours more than women. The Group’s training costs amounted to EUR 1.8 million (compared to EUR 1.5 million in 2020). The majority of in-house training courses took place online with lower indirect costs. Special attention was paid to the internal transfer of knowledge, as 61% of in-house training was carried out by our employees, i.e. in-house lecturers.
| Gender | Average Number of Functional Training Hours |
|---|---|
| Men | 62 |
| Women | 48 |
| Total | 47 |
Employees are also encouraged to continue their formal education; work study was funded for 150 Group employees and scholarships were provided to 36 pupils and students. Obligatory work placement was provided to 52 pupils and students. The Company cooperated with schools and faculties in preparing project assignments and ensured the transfer of practical knowledge and experience to young people. A total of 25 young employees completed traineeship under the guidance of mentors.
The management-by-objectives system is implemented by all Group insurance companies. A total of 55% of all Group employees and 71% of the parent company’s employees are included. Management by objectives is used to monitor employees’ performance, motivate.
Business Report Sustainable development at the Triglav Group Risk Management Accounting Report
them and receive their feedback. Employees are rewarded for the achievement of their objectives, which are set together with their supervisor during the annual development interview (the top-down approach) and monitored at quarterly interviews. Due to the nature of their work, agents and heads of sales team who are rewarded on the basis of sales targets are excluded from the management-by-objectives system.
The Solvency II Directive requires that all persons who manage or supervise an insurance undertaking or hold a key function have adequate professional qualifications (t) and are of good reputation and integrity (proper). The fit and proper assessment of the management board members, the supervisory board members and key function holders in the Group is carried out based on national legislation and adopted internal documents, which is also described in Section 5 Corporate Governance Statement. Fit and proper assessment was performed in all insurance companies in line with respective policies.
The organisational vitality survey (ORVI) in 2021 confirmed that the measures taken by the Group to maintain the high vitality of the organisation and employee satisfaction were appropriate. The survey included 87% of all employees in 15 Group members (compared to 88% in 2020) in which ORVI is measured, which is the second highest participation to date.
The aggregate ORVI index is composed of the indicators (indices) for work environment, systems, operational management, personal view and engagement, which are further classified into ten categories. Organisational vitality improved, reaching 4.00 (2020: 3.99) at Group level and 4.05 (2020: 4.03) at the parent company. Among the indices, most progress was recorded at the indicator “operational management”, which was 4.13 at Group level and 4.30 at the parent company. Despite the changed working conditions, the Group employees remain very engaged (4.14). Engagement reached the highest value among the five measured indicators, with only “operational management” being rated higher at the parent company.
| ORVI Index | 4.00 | +0.01 | |
|---|---|---|---|
| E: Engagement | 4.14 | -0.01 | |
| Response | 87.0 | -1.18 | |
| E1: Commitment and activation | E2: Energy and trust in the company | 4.34 | -0.02 |
| D: Personal view | 4.09 | -0.01 | |
| C: Operational leadership | 4.13 | +0.03 | |
| C1: Direct leadership | 4.15 | +0.02 | |
| C2: Justice of leaders | 4.11 | +0.04 | |
| D1: Empowerment | D2: Satisfaction | 4.18 | -0.02 |
| A: Work environment | 3.97 | -0.01 | |
| B: Systems | 3.66 | +0.01 |
| 3.26 | 0.00 |
|---|---|
| 4.05 | +0.01 |
| 4.10 | -0.02 |
|---|---|
| 3.85 | 0.00 |
working hours, their co-workers and direct supervisors. As part of improving the organisational culture (see below), interpersonal relationships and cooperation within the organisation and the Group were also better rated. Employees believe that the Group is successfully adapting to the epidemic, they are satisfied with the benefits at work and feel safe in their work environment. The results showed that knowledge and understanding of the strategy among employees was excellent.
After four years, the measurement of the organisational culture again took place in 2021; its aim was to monitor the strategic project of renovating the Triglav Group’s organisational culture. The measurement results showed that in the last four years the Group was on the right track by carrying out many activities designed to adopt constructive behavioural styles. The changes achieved according to the world-renowned methodology represent one of the greatest advances in our region. There has been a considerable increase in constructive behavioural styles, which indicates that organisational culture has become more cooperative, inclusive, development-oriented, transparent, open and creative. Positive changes are noticeable both at Group and parent company levels.
With constructive behavioural styles increasing on average by 13% and 17% respectively. The highest growth in the Group was recorded in the humanistic-encouraging style and self-actualising (both are among the desired styles). The former is characterised by the exchange of ideas, enjoyment of work and the maintenance of personal integrity, while the latter is characterised by constructive resolution of disagreements, mutual encouragement and help in thinking. Among the behavioural styles in the parent company, affiliative strengthened the most.
Zavarovalnica Triglav is implementing a comprehensive and strategic approach to ensuring occupational health and safety. In order to manage and reduce risks to the lowest possible level, a number of activities are carried out, such as strict compliance with sectoral legislation (identification of risks and hazards and their management), promotion of occupational health (Triglav.smo – Zavarujmo zdravje (Protecting Health) health promotion programme), provision of personal protective equipment and appropriate working conditions, ergonomic workplace arrangement, and employee awareness and education.
Many activities take place in the context of the Family-Friendly Enterprise certificate, additionally contributing to greater satisfaction and better health of employees. The comprehensive approach implemented in the parent company is being transferred to other Group companies by establishing common minimum standards for ensuring occupational health and safety and by strictly complying with local legislation. In this regard, the aim is to identify, mitigate and manage risks arising from duties and the work environment. Occupational safety and health is organised in accordance with the legislation and ensures the smooth provision of a healthy work environment for the employees.
Employees are referred to periodic medical examinations and every new hire is required to undergo a statutory medical examination before taking up employment.
GRI GS 103-1, 103-2, 103-3, SDG 8.8 |
GRI GS 403-1 |
GRI GS 403-2, 403-3, 403-4, 403-8
| -4% | -4% | -8% | -1% | -4% | |
|---|---|---|---|---|---|
| Perfectionistic | Power | Achievement | Competitive | Aflitative | Humanistic |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
|---|---|---|---|---|---|---|---|---|
| 14% | -4% | -1% | 13% | 14% | 9% |
|---|---|---|---|---|---|
1%
The revised Safety Statement and Risk Assessment was adopted in 2021, which introduced measures to prevent and reduce all risks to a minimum. Risks were reassessed, followed by identification of measures related to the increased risk of infectious disease and requirements for safe working from home.
In addition, a sick leave analysis was taken into account, which is prepared every year by occupational medicine specialists.
implemented at Group level.
Health promotion is carried out in a targeted and prudent manner with regard to the most common health problems that are perceived among employees based on anonymous reports of occupational medicine. The focus in 2021 was on managing the risks of the musculoskeletal system, implementing active breaks for employees and referring them to the mandatory reading of e-material on a healthy spine and exercising, stressing the importance of ergonomics when working at the office or from home. The four-day preventive health programme Dnevi zdravja (Days of Health) took place for the third consecutive year, which has been attended by more than 400 employees to date. Training courses in maintaining health and stability in an uncertain situation continued. New educational topics were joined into the spring and autumn series of lectures entitled A healthy mind in a healthy body. Employees from other Group companies in Slovenia also attended some online lectures. Care for occupational health and safety is promoted among clients through insurance products. Anyone (employer) wishing to conclude group accident insurance can only do so if they fulfill the requirements relating to occupational health and safety.
The crisis team, set up in the parent company when the COVID-19 pandemic was declared, continued its work in 2021 and will continue to operate throughout the period of increased risk of infection with infectious diseases. The team is in constant contact with the Company’s Management Board and the heads of individual departments and is in charge of preparing work instructions, work organisation and up-to-date information. Good practice of crisis management was also transferred to the subsidiaries in the Group.
In order to ensure business continuity, regular testing of key employees, self-testing and verification of compliance with the recovered/vaccinated/tested rule was organised. A hotline and an online mailbox for reporting infections are available. Moreover, latest information, recommendations and forms are available to the employees on the special intranet tab COVID-19. Occupational health and safety specialists proved to be highly skilled and provided employees with a high level of safety throughout the pandemic with appropriate work organisation and protective equipment.
For all employees working from home, instructions were drawn up on how to arrange work space at home according to the basic requirements of occupational safety and health. The employees who work at the Company’s premises were regularly informed about the compliance with safety measures. Sufficient quantities of protective masks and disinfectants were provided. In 2021, the parent company distributed 115,981 protective masks, 13,615 disinfectants, 49 pairs of protective gloves and 21,975 rapid antigen (HAG) tests for self-testing. In addition, plexiglass partitions were installed in more exposed workplaces (e.g. windows intended for sale and claim reporting, the canteen).
A total of 71 inspections of the implementation of measures to prevent the spread of infectious diseases and compliance with the recovered/vaccinated/tested rule were carried out at Company premises. No irregularities were found in most of them, and the minor discrepancies which were identified in nine cases were eliminated immediately. In addition, plexiglass partitions were installed in more exposed workplaces (e.g. windows intended for sale and claim reporting, the canteen).
With regard to fire safety in the Group, a plan on emergency response and actions in the case of an emergency and other security events was developed for the employees. In the case of an emergency or event that poses a security threat, employees can call the security control centre, where they will receive appropriate instructions. Furthermore, the Group
GRI GS 403-5, 403-6 |
GRI GS 403-7 |
implements preventive measures, monitors on-site safety in accordance with the applicable statutory requirements, carries out regular training and education of employees, and ensures ongoing improvement of safety at all business locations.
Security patrols and inspections of buildings and premises were carried out according to the annual plan, but, due to the situation, evacuation drills did not take place. Maintenance and regular inspections of active fire protection systems are performed within the prescribed deadlines. In 2021, 11 fire risk assessments and 9 fire safety inspections were carried out, and no irregularities were identified.
are provided in accordance with Zavarovalnica Triglav’s collective agreement and the applicable legislation, while the subsidiaries adhere to the applicable local legislation. Before starting their work, employees are familiarised with the dangers at work and work safety measures that they are obligated to follow. Employees are provided with the prescribed work equipment and personal protective equipment, and periodic medical examinations are carried out in line with the timeline and scope foreseen for individual job categories.
The number of accidents in both the Group and the Company increased slightly in 2021, but their number remains small.
| 2021 | 2020 | 2019 | Index | |||||
|---|---|---|---|---|---|---|---|---|
| Triglav Group | Number | Percentage | Number | Percentage | Number | Percentage | 2021/2020 | 2020/2019 |
| At work | 10 | 76.9 | 7 | 63.6 | 11 | 55.0 | 143 | 64 |
| On business trips | 3 | 23.1 | 4 | 36.4 | 9 | 45.0 | 75 | 44 |
| Total | 13 | 100.0 | 11 | 100.0 | 20 | 100.0 | 118 | 55 |
| Zavarovalnica Triglav | Number | Percentage | Number | Percentage | Number | Percentage | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|---|---|---|
| At work | 4 | 57.1 | 1 | 25.0 | 2 | 28.6 | 400 | 50 |
| On business trips | 3 | 42.9 | 3 | 75.0 | 5 | 71.4 | 100 | 60 |
| Total | 7 | 100.0 | 4 | 100.0 | 7 | 100.0 | 175 | 57 |
The number of lost work days in the Group rose due to the higher number of injuries at work. Each injury at work 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 Company recorded two dangerous occurrences (compared to 1 in 2020) and no occupational diseases in 2021.
In the Triglav Group, the absenteeism rate was 4.74% and was 0.38 percentage point lower than in 2020, with the proportion of absenteeism paid by the Company decreasing by 0.02 percentage point (sickness benefits up to 30 days). In contrast, the lost time incident rate for which the costs are borne by other organisations increased by 0.40 percentage point (sickness benefits over 30 days, nursing and/or accompanying a sick person). The absenteeism rate at the parent company was also higher and stood at 5.13% (compared to 4.61% in 2020). The lost time incident rate for which the costs are borne by the Company fell slightly (by 0.05 percentage point), whereas the lost time incident rate for which the costs are borne by the Health Insurance Institute of Slovenia rose (by 0.57 percentage point).
| Index | Triglav Group | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | ||
|---|---|---|---|---|---|---|---|---|
| Lost work days due to work-related injuries | 543 | 289 | 754 | 188 | 38 | |||
| Lost time incident rate – LTI R* | 0.24 | 0.21 | 0.38 | 113 | 56 |
| Index | Zavarovalnica Triglav | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | |
|---|---|---|---|---|---|---|---|
| Lost work days due to work-related injuries | 321 | 98 | 73 | 328 | 134 | ||
| Lost time incident rate – LTI R* | 0.31 | 0.17 | 0.30 | 175 | 58 |
As part of the Triglav .smo programme, the Company combines numerous activities to improve the satisfaction of its employees. The awareness and knowledge of all important aspects of our lives was strengthened through various workshops and events. To a lesser extent, such activities are also carried out in other Group members.
With the support of the Psihološki utrip (Psychological Pulse) in-house group, psychosocial, behavioural and other problems of employees were identified, providing them with psychosocial support and professional guidance to improve their mental well-being. Two cycles of online gatherings entitled Healthy mind in a healthy body were held, aimed in particular at improving and maintaining good relations between employees for a better climate in the work environment and their well-being.
The measures of the Family-Friendly Enterprise Certificate at the parent company are designed to provide for a better work-life balance of the employees. Due to the ageing of the population, measures to ease the care obligations of employees towards their elderly family members are coming to the fore. The Company has been the holder of the full Family-Friendly Enterprise Certificate since 2012 with a regular audit performed in 2020.
The Group members operating outside Slovenia also provide 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 processes are adapted to new forms of work, which are dictated by digitalisation and the epidemic situation. In 2021, the option of working from home was provided to all employees whose work process allowed it. At the 2021 year-end, 28% of Group employees and 50% of Company employees had this option available to them. Due to the COVID-19 pandemic, the proportion of employees allowed to work from home was even higher; it was 58% at Group level and 65% in the parent company.
| Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|
| Number of employees allowed to work from home | 3,069 | 1,468 | ||
| Proportion of employees allowed to work from home | 58.3 | 65.4 | ||
| Number of hours of working from home | 1,743,767 | 714,646 | ||
| Proportion of hours of working from home | 16.2 | 15.6 |
| Triglav Group | Women | Men | Total |
|---|---|---|---|
| Maternity leave, child care leave | 136 | 136 | |
| Paternity leave of 20 days | 42 | 42 | |
| Paternity leave of 75 days (up to the child's age of three years) | 5 | 5 | |
| Option of part-time working | 38 | 1 | 39 |
| Number of employees who returned to work after maternity leave in the reporting year | 73 | 4 | 77 |
| Return rate after parental leave | 61% | 100% | 63% |
| Women | Men | Total | |
|---|---|---|---|
| Maternity leave, child care leave | 26 | 26 | |
| Paternity leave of 20 days | 40 | 40 | |
| Paternity leave of 75 days (up to the child's age of three years) | |||
| Option of part-time working | 26 | 26 | |
| Number of employees who returned to work after maternity leave in the reporting year | 23 | 2 | 25 |
| Return rate after parental leave | 100% | 100% | 100% |
Circumstance and work requirements permitting, working hours are adapted to the needs and wishes of employees. 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.
The employees exercise their management rights based on the agreement on worker participation in the management of Zavarovalnica Triglav under the Worker Participation in Management Act. The agreement also sets out other rights and the manner of workers’ participation in management, which is both individual and collective. Two representative trade unions and the Works Council are active in the Company. The Company concluded a special agreement and cooperates well with both of them. Before adoption, any document specifying the rights and obligations of workers is submitted to both trade unions to give their opinion. The Company informs the Works Council of any changes in the Company’s operations at least 10 days prior to adopting such a decision.
Sustainable development at the Triglav Group
Risk Management
Accounting Report
GRI GS 103-1, 103-2, 103-3 |
GRI GS 401-2, 201-3 |
GRI GS 401-3 |
The Group revised the Triglav Group Code in 2021, in which ethical conduct at all levels of its operations plays a key role. Among the 12 ethical principles is respect for human rights, which is based on respect for and protection of internationally recognised human rights and fundamental freedoms. The Group creates a stimulating work environment that respects and protects the dignity and integrity of employees at the workplace, regardless of any individuality or affiliation.
Insurance companies outside Slovenia also take into account local legislation when implementing the provisions of the Code. These companies have internal resolution mechanisms, and reporting of Code violations takes place within the framework of compliance. Each report and identity of the reporting person (whistleblower) are treated confidentially. The reporting person is protected from any retaliatory action and is given an opportunity to informally resolve the issue.
In 2021, three employee reports of inadmissible conduct were received at Group level. One case involved an interference with the fundamental rights to protect dignity and/or unacceptable behaviour such as discrimination, harassment or mobbing in the workplace. The condant was involved in the consideration of two reports of alleged inadmissible conduct; one was dismissed at the request of the reporting person without formal proceedings, and in the other the condant did not find a violation of the reporting person’s dignity.
The Company incorporated its commitment to respect human rights in business operations into its business processes. With it, as the Group’s parent company, the Company committed itself to respecting human rights throughout the entire business process and to avoiding and preventing possible negative impacts on ensuring human rights.
The Ideja IN programme was updated in 2021, which encourages creativity, putting forward good ideas and proposing improvements in the Company. It is available to employees on the intranet, and several different areas are involved in reviewing ideas. A total of 27 ideas for improvement were examined in 2021.
Employees have the opportunity to take part in various forms of socialising and sports activities outside working hours in most Group companies. Due to the pandemic, unfortunately, some established forms of socialising and sports activities, such as the Triglav Group Day – Our Day, sports games of financial organisations (ŠIFO) and gatherings with retired Triglav employees, did not take place. A total of 22% of employees of Group members and 44% of employees of the parent company were members of mountaineering and sports clubs.
The Triglav Group carries out a series of activities to reduce risks in the environment and supports activities in sports, culture, education, environment and health. The Group has close ties with the environment in which it operates through partnerships with its employees, policyholders, organisations and local communities.
The volume of generated assets distributed among various stakeholders of the Group is shown by economic value distributed. In 2021, it increased to EUR 1,281.8 million (index 109) mainly due to dividend payments and the increase in net claims incurred and other insurance expenses.
| Index | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 |
|---|---|---|---|---|---|
| Economic value generated | 1,378.8 | 1,274.9 | 1,292.4 | 108 | 99 |
| Economic value distributed | 1,281.8 | 1,179.2 | 1,245.6 | 109 | 95 |
| - Net claims incurred and other insurance expenses | 856.8 | 814.3 | 838.4 | 105 | 97 |
| - Expenses from financial assets | 27.6 | 36.7 | 21.9 | 75 | 167 |
| - Other expenses | 24.8 | 22.9 | 23.5 | 108 | 97 |
| - Operating expenses | 135.9 | 119.5 | 120.2 | 114 | 99 |
| - Dividend payments | 38.6 | 0.0 | 56.8 | 0 | 0 |
| - Tax expense (income tax expense) | 19.7 | 17.2 | 17.1 | 114 | 101 |
| - Community investments (prevention activities, donations, sponsorships) | 8.7 | 7.8 | 7.4 | 111 | 105 |
| - Employee wages, allowances and benefits | 169.7 | 160.7 | 160.3 | 106 | 100 |
| Economic value retained | 96.9 | 95.7 | 46.8 | 101 | 204 |
The Group’s responsibility to the community in all environments is fulfilled primarily through investments in prevention, sponsorships and donations, as well as investments in infrastructure at national and local levels, which are presented below. Their content is defined based on:
Business Report
Sustainable development at the Triglav Group
Risk Management
Accounting Report
GRI GS 103-1, 103-2, 103-3 |
GRI GS 406-1 |
Prevention programmes are an important social aspect of sustainable impacts of the insurance industry, as they reduce risks and are also prescribed by law. Compared to 2020, the volume of investments in prevention was higher both at Group level and in the parent company.
The bulk of funds was allocated to improving traffic, fire and health safety.
| Year | Triglav Group (EUR million) | Zavarovalnica Triglav (EUR million) |
|---|---|---|
| 2019 | 2.4 | 1.8 |
| 2020 | 2.8 | 2.9 |
| 2021 | 3.5 | 3.4 |
| 40% | 38% | 30% | 32% |
|---|---|---|---|
| 2% | 5% | 5% | 2% |
| 5% | 4% | 8% | 9% |
| 11% | 12% |
The Group pursues its mission and creates a safer future also through preventive projects and campaigns. With regard to road prevention, drivers were offered numerous opportunities to improve their safe driving skills and upgrade their knowledge of road traffic regulations; for the same purpose, the benefits of the DRAJV application, the Vozim se and Vse bo v redu portals and driver training courses were combined. With respect to fire safety, almost half of all Slovenian mountain huts and chalets were equipped with automatic fire extinguishing systems over two years; awareness of the fire risk in mountain huts was raised by conducting fire drills in the high mountain range in cooperation with many partners. The Company teamed up with many experts and specialists to promote health and prevent disease. Free consultations, workshops and training courses were held, in addition to co-financing the purchase of equipment and the operation of programmes.
A total of 190 drivers in six Slovenian towns retook their driving test with a driving instructor in 2021.
| Assistance in the event of a sudden cardiac arrest | Co-financing or purchase of 25 defibrillators in local communities – 166 since 2014. Co-financing of training courses in the use of defibrillators in local communities. |
|---|---|
| Prevention and early detection of disease | 37 meetings and other events on physical and mental health were held in the Triglav Lab. Special attention was devoted to the mental health of young people. |
| Rapid response training | Co-financing of first aid education and training of first responders for healthcare institutes and municipalities. |
| Purchase of medical equipment | Co-financing of devices such as blood glucose meters, a ventilator, ultrasound and ECG machines for healthcare institutes. |
| Retaking the driving exam, partner AMZS (Automobile Association of Slovenia) | 190 drivers in six Slovenian towns retook the driving test with a driving instructor. In the three years of implementing this campaign, more than 410 drivers, who have an average of 28 years of driving experience, took a refresher ride with a driving instructor. |
|---|---|
| The most common driver errors were presented in articles on the vozimse.si portal. | |
| Vozimse.si – a road traffic prevention portal, partner AMZS | 110,000 drivers passed the renewal road rules test, which is almost 10% of all Slovenian drivers. |
| The most common mistakes made by drivers of the DRAJV application were presented on the portal, and information was published that could help drivers eliminate them. | |
| Traffic safety awareness videos, partner Atmosferci | 4 videos were recorded on the following topics: myths of winter driving, anger in traffic, proper use of the left lane on the highway, motorcycle responders. |
In the context of the traditional New Year’s prevention campaign Za boljši jutri (For a better tomorrow), 25 prevention projects were supported in Slovenian local communities. Funds were allocated to firefighters, health care, civil protection, counselling in the field of children’s mental health, institutions for users with special needs and elementary schools. Over 200 preventive projects were supported over eight years.
A total of 25 defibrillators were co-financed or bought in local communities in 2021 – amounting to 166 since 2014.
The management of sponsorship and donor partnerships in the Group is carried out in accordance with the established uniform guidelines. Attention is paid that their selection complies with the Company’s business guidelines and brand. The situation related to the COVID-19 pandemic eased in comparison with the previous year and partnerships once again became more active. The amounts of both sponsorships (index 116) and donations (index 117) were increased.
| Funds for sponsorships of the Triglav Group and Zavarovalnica Triglav in EUR million | 2019 | 2020 |
|---|---|---|
| 4.3 | 2.4 |
| Funds for donations of the Triglav Group and Zavarovalnica Triglav in EUR thousand | 2019 | 2020 |
|---|---|---|
| 4.4 | 2.5 | 3.8 | 2021 | |||
|---|---|---|---|---|---|---|
| 2.8 | 2019 | 2020 | ||||
| 532.2 | 185.8 | 781.3 | 202.3 | 666.0 | 2021 | 173.3 |
Zavarovalnica Triglav is a sponsor of 24 top athletes in Slovenia. Žan Košir is in the photo.
| Sustainability projects | 1% |
|---|---|
| Health | 2% |
| Culture | 0% |
| Education | 2% |
| Sports | 6% |
| Total | 82% |
| Sustainability projects | 10% |
|---|---|
| Health | 9% |
| Culture | 3% |
| Education | 0% |
| Sports | 85% |
| Education | Humanitarian projects | Health |
|---|---|---|
| 11% | 16% | 18% |
| 18% | 26% | 21% |
| 48% | 43% |
Spor ts sp onsor ships and the developmen t of young athletes as well as raisin g awareness abou t the
impor tance of a h ealthy lifest yle r eceive the majorit y of sp onsorship funds. The Group is recognised as
a par tner of nati onal spo r ts asso ciati ons , international spor ts even ts and numerous spor ts clubs in its
mark e ts. In 2021, its donor ac tivitie s were streng thened and the largest share of funds was allocate d to
health care and hum anitarian p roje ct s.
| Country | Sports sponsorship | Culture | Education and training |
|---|---|---|---|
| Slovenia | • Partner of the Ski Association of Slovenia • Golden partner of national teams in biathlon and Nordic skiing • General sponsor of the FIS Ski Flying World Championship in Planica • Sponsor of the Ski Jumping World Cup Ladies in Ljubno ob Savinji • Sponsor of the Biathlon World Cup in Pokljuka • Sponsor of the Sports Federation for the disabled of Slovenia • Golden partner of the Football Association of Slovenia • Sponsor of the Tennis Association of Slovenia • Golden sponsor of the Table Tennis Association of Slovenia • Sponsor of the Gymnastic Federation of Slovenia • Sponsor of the Canoe Federation of Slovenia • General partner of the climbing event Triglav The Rock Ljubljana • Partner of the Odbito na Ljubljanici event • Sponsor of top athletes: Peter, Domen and Cene Prevc, Anamarija Lampič, Janez Lampič, Ela Nala and Tara Katarina Milić, Kaja Juvan, Domen Škoc, Janja Garnbret, Timotej Lampe Ignjić, Nataša Robnik, Miha Dovžan, Vid Vrhovnik, Aljaž Sladič, Nika Radišić, Špela Rogelj |
Nika Križnar, Rok Marguč, Klemen Bauer, Jakov Fak, Katja Pogačar, Žan Košir and Jan Pancar.
| Donation recipient | Purpose of aid |
|---|---|
| Lajka, society for the protection of and assistance to animals in distress, Slovenia | Assistance to animals in distress |
| From Children to Children Society, Slovenia | Co-financing of activities for children with special needs |
| Association of Patients with Blood Diseases, Slovenia | Support for the rehabilitation programme |
| General hospitals of Ptuj, Murska Sobota, Jesenice and Izola, Slovenia | Co-financing of necessary equipment (Triglav Run) |
| Happy Feet Society, Slovenia | Family Assistance Project |
| Neurotrust, a neurorehabilitation institution, Slovenia | Let’s ride together drive |
| Tone Okrogar Primary School Zagorje, Municipality of Hrastnik, KS Kapca, Miklavžev zavod Murska Sobota and Vesna – Rateče d.o.o., Slovenia | Co-financing the renovation of children’s playgrounds (the renovation of 53 children’s playgrounds was co-financed from 2012 to 2021) |
ZPM Slovenija Ljubljana na Moste – Polje, Slovenia • Support for various programmes
Kinodvor and the Paediatric Clinic, Slovenia • Enabling children at the hospital to watch a movie and socialising with the Watch Out Doggy mascot
Cystic Fibrosis Association, North Macedonia • Support for the rehabilitation programme
Dragiša Mišović Clinical Centre, Serbia • Purchase of hospital equipment
World Vision, Bosnia and Herzegovina • Financial support to World Vision BiH organisation
The mission of Zavarovalnica Triglav’s Zavod Vse bo v redu (Everything Will Be Alright Institute) is to carry out socially responsible activities aimed at providing help and support to the socially disadvantaged and implement preventive activities. Key projects in 2021 included:
The Young Hopes project was implemented for the ninth time in a row, providing support to talented young athletes, para-athletes and artists. The current recipients of funds, aged 16 to 19, were announced at the end of 2021. The Everything Will Be Alright Institute allocated EUR 50,000 for the development of their talents and the realisation of their goals. In nine years, 114 young hopes were supported with a total of EUR 451,000.
For all Young Hopes generations and all those closely associated with their work, the Company organised free lectures on effective communication and proper nutrition of athletes and those who are often exposed to pressure and stress.
The Company supported the Alcohol-Free for 40 Days campaign for the sixth year in a row, which promotes a healthy and sober lifestyle among the general public, including drivers. By promoting recreation on moderate and responsible alcohol consumption and raising awareness of the consequences of alcohol consumption, the Company is joining the efforts for positive changes in transport and community.
Zavarovalnica Triglav, d.d., Ljubljana
Miklošičeva cesta 19, 1000 Ljubljana
Zavarovalnica Triglav uses a standardised software solution for procurement, which increases the transparency of procurement procedures and further reduces the operational risks of non-compliance with good business practices. Major procurement procedures are performed by the Strategic Sourcing Department which, in addition to its procurement role, performs a coordinating and communicating role between the departments in need of procurement and suppliers.
A new procurement policy for 2021–2023 was adopted in 2021. It defines the most important procurement categories and key development guidelines of procurement processes for greater cost efficiency, operational risk management and building long-term partnerships. It also ensures brand quality and compliance with the Group’s integrated strategy and code. The biggest new feature is the definition of criteria for classification in the group of key and strategic suppliers, among which are the sustainability aspects related to the requirements of the GRI GS standards. The revised purchasing strategy and new indicators are in line with the Group’s sustainable business guidelines.
Sustainability assessment is used to assess respect for human rights, provision of a safe and healthy work environment for employees and other workers (at least in accordance with the applicable legislation), compliance with Slovenian legislation and international human rights documents and implementation of the requirements of environmental legislation. In this way, suppliers are assessed according to GRI standards indicators; 375 suppliers were assessed in 2021 (compared to 311 in 2020).
The Company procures most materials and services on the Slovenian market; the share of suppliers outside the local market is less than 10%. The broader market trends in key procurement groups, such as IT, property management, general procurement, intellectual services, marketing, labour and general affairs, are regularly monitored. The Company seeks offers outside the local market only when it is economically feasible or there is no supplier in the market for the goods or services in demand.
The Group members also procure the majority of materials and services on their local markets. Where possible and reasonable, some of the same types of materials, raw materials and services were procured centrally and more favourable purchasing terms and conditions were achieved. All Group members adhere to the minimum standards for the Group’s procurement process.
In 2022, an optimisation project will be implemented to carry out all procedures for same type purchases of companies in Slovenia in the amount exceeding EUR 25,000 (excluding VAT) via the Strategic Sourcing Department; for this purpose, a standardised software solution will be used.
The Group’s sales network is constantly being expanded with contractors, reaching 1,720 in 2021. Before signing an agreement with a new contractor, the standardised selection procedure is carried out, while the business results of existing contractors are regularly monitored and measures are taken for enhancing cooperation and improving sales.
As at the 2021 year-end, the Company cooperated with 528 contractors authorised to provide insurance agency services (roadworthiness test providers, car dealers, leasing companies, banks, travel agencies, life and non-life insurance agencies) – 450 for non-life and 78 for life insurance.
Non-life insurance agency companies are rewarded based on the following criteria: exclusivity, written premium, size of the area of operation, volume of sales of insurance products and fulfillment of planned obligations. When awarding a bonus, the Company takes into account the fulfillment of monthly targets and the renewability and growth of the insurance portfolio. The commission rate of contractors selling life insurance products depends on exclusivity, portfolio balance, client loyalty indicator and the effectiveness of maintaining the portfolio. The first agreement with a new partner is concluded for a fixed term. Before signing or renewing the agreement, a standardised review is performed. Contractors are also rewarded for exceeding the annual non-life and life insurance sales targets (volume bonus); furthermore, special additional rewarding campaigns are carried out during the year. In 2021, rewarding of contractors for remote policy underwriting was introduced.
Contractors are able to attend various training courses, workshops, and sales and motivational events, thus gaining new insurance and sales knowledge and skills, which improves client satisfaction. When entering into new agreements with agencies, priority is given to exclusive sales, as insurance distributors can offer policyholders a comprehensive range of products of the Group members.
Companies outside Slovenia cooperated with more than 1,200 contractors in 2021. In some countries, sales was promoted to natural persons through additional incentives. In Montenegro, the rules of remuneration were upgraded, placing an emphasis on the variable part of remuneration. These rules were also updated in some other companies.
In awarding a bonus, linear bonus schemes are used, which are upgraded with bonus commissions depending on the value of insurance policies, financial discipline and the claims ratio. Premium rates are universal (regardless of whether an insurance policy is new or renewed), whereas exclusive partnerships are additionally rewarded with benefits.
GRI GS 102-9, 103-1, 103-2, 103-3, 308-1, 414-1 |
GRI GS 103-1, 103-2, 103-3, 204-1 |
In 2021, the Triglav Group Code was revised, changing in particular the method of addressing target stakeholders. Ethical principles were expanded to the following twelve:
were also transferred to other Group members. Employees are regularly informed about the content of the code, which is also included in training.
In 2021, the Triglav Group dealt with two violations of the Triglav Group Code. No monetary losses directly related to the marketing and provision of information on insurance products were recorded.89
None of the covered employees were involved in investment-related investigations, consumer complaints, private civil disputes or other regulatory proceedings.90
No monetary losses directly related to legal proceedings concerning fraud, insider trading, antitrust, anticompetitive behaviour, market manipulation, abuse or other related laws or regulations of the financial industry were recorded.91
Insurance fraud management is a condition for trusting in the insurer’s fair business practices and an integral part of cost-effective operations. To identify suspected fraud, the Company uses advanced computer solutions that quickly and reliably detect suspicious cases. Technology also provides the Company with guidelines in establishing key internal controls for fraud prevention and identification, while at the same time helps to measure the Company’s effectiveness in insurance fraud management.
Systematic training and awareness raising activities on how to identify insurance fraud, particularly with respect to underwriting and claim settlement, are carried out for all employees. In the fight against fraud, the Company actively collaborates with other insurers and competent state authorities.
With the growing scope of remote insurance processes in recent years, new forms of fraud were detected, which the Company has begun to systematically monitor, adjusting its operations accordingly.
Whistleblowing regulations are governed by the Triglav Group Code, which is supplemented by the Rules on the management of internal fraud and violations. The latter also provides a framework for ensuring the protection of the reporting person’s (whistleblower’s) identity and protection against retaliation. At least one channel for reporting violations (an online form, a hotline for reporting fraud or the email address [email protected]) is available in all insurance and financial companies of the Group. In companies that employ at least 50 people, a new internal channel is being introduced in the application for receiving reports of violations. It is public and accessible on the website www.triglav.eu, making it available to all external stakeholders. Reporting persons may report any unlawful conduct, or an attempt thereof, that is contrary to the values and principles of the Triglav Group. Each report is dealt with in accordance with a predetermined procedure; the bona fide reporting person is protected during the procedure and after its completion.
Insurance fraud was confirmed in 878 cases out of 1,517 reported cases of suspected fraud in 2021. Of these, 33 reports of suspected fraud were received from external and internal reporting persons (whistleblowers). Fraud was confirmed in 9 cases. The number of confirmed cases of suspected fraud was 15% higher than in 2020. The Group also dealt with 34 cases of suspected internal fraud. Suspicion was confirmed in 18 cases in the total value of EUR 125,527.92
In Group companies, the anti-corruption policy sets a minimum standard of behaviour in proceedings with an identified corruption risk. As a mandatory contractual provision in legal relations with its contractors, the Group adopted an anti-corruption clause, a clause on respect for human rights, prevention of conflicts of interest, and protection of personal data and business secrets. Through regular training and communication, employees are trained in fair and transparent behaviour and how to respond to any identified irregularities. Zavarovalnica Triglav’s employees attended training courses in corruption, conflict of interest management, prevention of money laundering and terrorist financing, and the Triglav Group Code for an average of 3.5 hours. No cases of corrupt practices were confirmed in the Triglav Group in 2021.
According to the Political Parties Act, Zavarovalnica Triglav may not and does not finance political parties. Such financing and other political activities are also banned by the corruption risk management policy of the Triglav Group; therefore, neither are carried out by any of its members.94
88 GRI GS 103-1, 103-2, 103-3, 102-16 |
89 SASB FN-IN-270a.1 |
90 SASB FN-AC-270a.1 |
91 SASB FN-AC-510a.1
92 GRI GS 419-1, SASB: FN-AC-510a.1, FN-AC-510a.3 |
93 GRI GS 103-1, 103-2, 103-3, 205-1, 205-2, 205-3 |
With regard to personal data protection, the Group did not have any substantiated complaints regarding violations of privacy and protection and loss of personal data in 2021. In one case, non-compliance was found in the obligation to inform an individual, which was immediately rectified. There were no material sanctions; however, one written warning was issued due to the violation of the obligation to protect personal data, which is why action was taken to eliminate the irregularities.
In 2021, Zavarovalnica Triglav held several employee education and training courses on personal data protection – one training hour per employee on average. The internal control of personal data protection and the level of informing of individuals about the processing of their personal data were upgraded. Uniform rules for personal data processing and protection continued to be implemented within the Group; they are based on common minimum standards for personal data protection. Special attention is paid to personal data protection and employees participate in regular training on personal data protection.
in its operations, product development and marketing. The protected interests of its competitors are respected and care is taken that the supplier selection procedures are transparent and comply with fair competition rules. By adopting the Handbook for Consumer and Competition Protection, the rules of behaviour to competitors were expanded, with special emphasis being on respecting the principles of fair competition. This is regularly communicated to employees. The Company was not informed of any proceedings due to non-compliance with competition protection rules that might have been initiated against any Group company in 2021.
The Group companies participate in various initiatives and associations that promote ethical conduct and sustainable business. The main standard of professional business practices is implemented in the context of the Insurance Code of the Slovenian Insurance Association and other industry codes. The Company takes part in the activities of the American Chamber of Commerce, especially in the Ethics and Transparency Committee. As one of the first Slovenian companies, it committed itself to respecting the Declaration on Fair Business Practices. By joining Transparency International Slovenia, the Company additionally committed itself to developing an anti-corruption culture, and by signing the Commitment to Respect Human Rights in Business, it supported the implementation of the National Action Plan of the Republic of Slovenia for Respect for Human Rights in the Economy. The subsidiaries carry out the parent company’s commitments or directly adopt similar commitments and initiatives.
The Company is an active member of the Slovenian Insurance Association and its committees, the Chamber of Commerce and Industry of Slovenia and other local and interest chambers. The Company’s representatives are active in the following professional associations: the Slovenian Directors’ Association, the Managers’ Association of Slovenia, the Association of Employers of Slovenia, the European Institute of Compliance and Ethics, the Slovenian Association of Actuaries and the Institute of Internal Auditors – IIA Slovenia. Furthermore, representatives of the Company are members of many international industry and professional associations for finance, actuaries and compliance; furthermore, as its members, they attend the Business Integrity and Transparency Forum of Transparency International Slovenia. Subsidiaries are members of industry and professional associations in individual countries where they operate.
Developments and changes in legislation are regularly monitored and included in the planning and implementation of operations. In 2021, the focus was on developing the most uniform practices in personal data protection and protection of privacy in electronic communications, related in particular to the transition to remote business. The following regulations were implemented: an amendment to the law governing companies, a directive governing the protection of whistleblowers and the guidelines of the European Insurance and Occupational Pensions Authority (EIOPA) on outsourcing to cloud service providers. The Company continued the harmonisation with the Business Report Sustainable development at the Triglav Group Risk Management Accounting Report.
regulation on sustainability – related disclosures in the financial services sector, monitored the implementation of the EU Taxonomy and continued to implement the adopted Triglav Group’s commitment to sustainability, which was upgraded with the Group’s strategic ambitions relating to sustainable development (ESG).
The Group companies comply with legislative requirements, they are constantly adapting to changes and are actively involved in regulatory procedures. In countries where EU law does not apply, all Group companies comply with the minimum standards set by the parent company.
The Company’s operations were adjusted to legal changes relating to supplemental voluntary pension insurance (SVPI) and obtained approvals for changes to pension schemes, management rules and investment policies for guarantee funds.
In the framework of a special working group, the definitions of the target market for more complex products were thoroughly reviewed in line with the EIOPA’s guidelines on product review, the Policy on Insurance Product Governance and Oversight, and the EIOPA’s and the ISA’s positions regarding COVID-19 mitigation measures. For most insurance products, the target market was revised in the part that defines the purpose of an insurance product and the assumption of investment risks.
Furthermore, the Company addressed compliance with regulations relating to sustainability and amended the products in compliance with Regulation (EU) 2020/852 (Articles 6 and 7).
The Triglav Group received EUR 2.7 million in grants and other forms of government assistance in 2021, of which Zavarovalnica Triglav received EUR 2.5 million. The largest share of government grants in the Group, 83.3%, was accounted for by reimbursements of labour costs by the state. The support received in individual countries in which the Group operates so as to curb the COVID-19 epidemic accounted for 7.2%, while incentives for employing specific categories of workers accounted for 7.9%. The share of funds obtained in public tenders for co-financing traineeships from the Cohesion Fund was 1.1%. See Section 5.4 of the Accounting Report for more information on government grants.
GRI GS 201-4
Address: Miklošičeva cesta 19, 1000 Ljubljana, Slovenia
Phone: ++ 386 (1) 474 72 00
Fax: ++ 386 (1) 432 63 02
Email: [email protected]
Web site: www.triglav.si, www.triglav.eu
Address: Miklošičeva cesta 19, 1000 Ljubljana, Slovenia
Phone: ++ 386 (1) 474 79 00
Fax: ++ 386 (1) 433 14 19
Email: [email protected]
Web site: www.triglavre.si
Activity: Reinsurance
| 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% |
| Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: | EUR 4,950,000/EUR 4,950,000 |
Address: Dunajska cesta 22, 1000 Ljubljana, Slovenia
Phone: ++ 386 (1) 47 00 840, 080 80 87
Fax: ++ 386 (1) 47 00 853
Email: [email protected]
Web site: www.triglavpokojnine.si
Activity: Pension funds
| 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% |
| Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: | EUR 6,750,764/EUR 6,750,764 |
Address: Antuna Heinza 4, 10000 Zagreb, Croatia
Phone: ++ 385 (1) 563 27 77
Fax: ++ 385 (1) 563 27 99
Email: [email protected]
Web site: www.triglav.hr
Activity: Insurance
| Equity stake of Zavarovalnica Triglav/the Triglav Group: | - /100.00% |
|---|---|
| Share of voting rights of Zavarovalnica Triglav/the Triglav Group: | - /100.00% |
| Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: | - /EUR 28,073,249 |
Address: Ulica Slobode 13a, 81000 Podgorica, Montenegro
Phone: ++ 382 (20) 404 404
Fax: ++ 382 (20) 665 281
Email: [email protected]
Web site: www.lo.co.me
Activity: Insurance
| Equity stake of Zavarovalnica Triglav/the Triglav Group: | - /99.07% |
|---|---|
| Share of voting rights of Zavarovalnica Triglav/the Triglav Group: | - /99.07% |
| Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: | - /EUR 10,362,648 |
Address: Pristaniška ulica 10, 6000 Koper, Slovenia
Phone: ++ 386 (5) 662 20 00, 080 26 64
Fax: ++ 386 (5) 662 20 02
Email: [email protected]
Web site: www.triglavzdravje.si
Activity: Insurance
| 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% |
| Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: | EUR 25,822,144/EUR 25,822,144 |
Address: Ulica Marka Miljanova 29/III, 81000 Podgorica, Montenegro
Phone: ++ 382 (20) 231 882
Fax: ++ 382 (20) 231 881
Email: [email protected]
Website: www.lovcenzivot.me
Activity: Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group: - /99.07%
Address: Dolina 8, 71000 Sarajevo, Bosnia and Herzegovina
Phone: ++ 387 (33) 252 110
Fax: ++ 387 (33) 252 179
Email: [email protected]
Web site: www.triglav.ba
Activity: Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group: - /97.78%
Share of voting rights of Zavarovalnica Triglav / the Triglav Group: - /98.87%
Nominal value of equity stake held by Zavarovalnica Triglav / the Triglav Group: - /EUR 10,620,215
Address: Ulica Prvog krajiškog korpusa broj 29, 78000 Banja Luka, Bosnia and Herzegovina
Phone: ++ 387 (51) 215 262
Fax: ++ 387 (51) 215 262
Email: [email protected]
Web site: www.triglavrs.ba
Activity: Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group: - /100.00%
Share of voting rights of Zavarovalnica Triglav / the Triglav Group: - /100.00%
Nominal value of equity stake held by Zavarovalnica Triglav / the Triglav Group: - /EUR 3,868,150
Address: Milutina Milankovića 7a, 11070 Novi Beograd, Serbia
Phone: ++ 381 (11) 330 51 00
Fax: ++ 381 (11) 312 24 20
Email: [email protected]
Web site: www.triglav.rs
Activity: Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group: - /100%
Share of voting rights of Zavarovalnica Triglav / the Triglav Group: - /100%
Nominal value of equity stake held by Zavarovalnica Triglav / the Triglav Group: - /EUR 14,556,702
Address: Bulevar 8-mi Septemvri br. 16, 1000 Skopje, North Macedonia
Phone: ++ 389 (2) 510 22 22
Fax: ++ 389 (2) 510 22 97
Email: [email protected]
Web site: www.triglav.mk
Activity: Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group: - /81.32%
Share of voting rights of Zavarovalnica Triglav / the Triglav Group: - /81.32%
Nominal value of equity stake held by Zavarovalnica Triglav / the Triglav Group: - /EUR 2,446,451
Address: Bulevar 8-mi Septemvri br. 16, 1000 Skopje, North Macedonia
Phone: ++ 389 (2) 510 22 01
Fax: ++ 389 (2) 510 22 97
Email: [email protected]
Web site: www.triglavzivot.mk
Activity: Insurance
Equity stake of Zavarovalnica Triglav/the Triglav Group: - /96.26%
Share of voting rights of Zavarovalnica Triglav / the Triglav Group: - /96.26%
Address: Slovenska cesta 54, 1000 Ljubljana, Slovenia
Phone: ++ 386 (1) 300 73 00
Fax: ++ 386 (1) 300 73 50
Email: [email protected]
Web site: www.triglavskladi.si
| Equity stake of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
|---|---|
| Share of voting rights of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
| Nominal value of equity stake held by Zavarov Alnica Triglav / the Triglav Group: | EUR 563,345 / EUR 563,345 |
| Address: | Dunajska cesta 22, 1000 Ljubljana, Slovenia |
|---|---|
| Phone: | ++ 386 (1) 47 44 440 |
| Fax: | ++ 386 (1) 23 17 785 |
| Email: | info\@triglav-upravljanje.si, info-nep\@triglav.si |
| Web site: | www.triglav-upravljanje.si |
| Activity: | Asset management |
| Equity stake of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
|---|---|
| Share of voting rights of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
| Nominal value of equity stake held by Zavarov Alnica Triglav / the Triglav Group: | EUR 3,160,113 / EUR 3,160,113 |
| Address: | Dunajska cesta 22, 1000 Ljubljana, Slovenia |
|---|---|
| Phone: | ++ 386 51 317 019, 82 007 348 |
| Email: | info\@trigal.com |
| Web site: | www.trigal.com |
| Activity: | Management of financial funds |
| Equity stake of Zavarov Alnica Triglav / the Triglav Group: | 49.90% / 49.90% |
|---|---|
| Share of voting rights of Zavarov Alnica Triglav / the Triglav Group: | 49.90% / 49.90% |
| Nominal value of equity stake held by Zavarov Alnica Triglav / the Triglav Group: | EUR 7,331,308 / EUR 7,331,308 |
| Address: | Bulevar 8-mi Septemvri br. 18, 1000 Skopje, North Macedonia |
|---|---|
| Phone: | ++ 389 (2) 510 21 90 |
| Fax: | ++ 389 (2) 510 28 81 |
| Email: | info\@triglavpenzisko.mk |
| Web site: | www.triglavpenzisko.mk |
| Activity: | Pension funds |
| Equity stake of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
|---|---|
| Share of voting rights of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
| Nominal value of equity stake held by Zavarov Alnica Triglav / the Triglav Group: | EUR 3,000,000 / EUR 3,000,000 |
| Address: | Dunajska cesta 22, 1000 Ljubljana, Slovenia |
|---|---|
| Phone: | ++ 386 (1) 430 95 34 |
| Email: | triglavint\@triglav-int.si |
| Web site: | www.triglav-int.si |
| Activity: | Holding company |
| Equity stake of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
|---|---|
| Share of voting rights of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
| Nominal value of equity stake held by Zavarov Alnica Triglav / the Triglav Group: | EUR 77,180,734 / EUR 77,180,734 |
| Address: | Ljubljanska cesta 86, 1230 Domžale, Slovenia |
|---|---|
| Phone: | ++ 386 (1) 724 66 50 |
| Email: | info\@triglav-svetovanje.si |
| Web site: | www.triglav-svetovanje.si |
| Activity: | Insurance agency activities |
| Equity stake of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
|---|---|
| Share of voting rights of Zavarov Alnica Triglav / the Triglav Group: | 100.00% / 100.00% |
| Nominal value of equity stake held by Zavarov Alnica Triglav / the Triglav Group: | EUR 8,763 / EUR 8,763 |
Address: Zelengorska 1g, 11070 Belgrade, Serbia
Phone: ++ 381 (1) 165 58 493
Email: [email protected]
Web site: www.triglav-savetovanje.rs
Activity: Insurance agency activities
Equity stake of Zavarovalnica Triglav/the Triglav Group: -/100%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group: -/100%
Address: Verovškova 60b, 1000 Ljubljana, Slovenia
Phone: ++ 386 (1) 580 68 80
Fax: ++ 386 (1) 580 68 75
Email: [email protected]
Web site: www.triglav-avtoservis.si
Activity: Maintenance and repair of motor vehicle
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%
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: EUR 43,663/EUR 43,663
Address: Pod skalo 4, 4260 Bled, Slovenija
Phone: ++ 386 (4) 579 80 00
Email: [email protected]
Web site: www.dc-bled.si
Activity: Hospital activities
Equity stake of Zavarovalnica Triglav/the Triglav Group: 50.00%/50.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group: 50.00%/50.00%
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: EUR 189,562/EUR 189,562
Address: Miklošičeva cesta 19, 1000 Ljubljana, Slovenia
Phone: ++ 386 (1) 47 47 518
Fax: ++ 386 (1) 47 47 159
Email: [email protected]
Web site: www.vsebovredu.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%
Initial contribution of Zavarovalnica Triglav/the Triglav Group: EUR 100,000/EUR 100,000
Address: Dolina br. 8, 71000 Sarajevo, Bosnia and Herzegovina
Phone: ++ 387 (3) 361 81 06
Fax: ++ 387 (3) 361 82 95
Email: [email protected]
Web site: www.triglav-savjetovanje.ba
Activity: Insurance agency activities
Equity stake of Zavarovalnica Triglav/the Triglav Group: -/100%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group: -/100%
Nominal value of equity stake held by Zavarovalnica Triglav/the Triglav Group: -/EUR 153,388
Address: Sarajevska cesta 60, 10000 Zagreb, Croatia
Phone: ++ 385 (1) 344 41 22
Email: [email protected]
Web site: www.triglav-savjetovanje.hr
Activity: Insurance agency activities
Equity stake of Zavarovalnica Triglav/the Triglav Group: -/100.00%
Share of voting rights of Zavarovalnica Triglav/the Triglav Group: -/100%
The Triglav Group is expanding its business network in the Adria region and its sales, after-sales and assistance services, which are provided in increasingly hybrid forms.
The Triglav Group’s business network includes over 1,720 insurance agencies, brokers and banks. Almost 73% of its outsourcers operate in markets outside Slovenia.
Channel approach and hybrid forms of business with the traditional method of selling insurance and financial services. In this way, it adapts to the increasingly dynamic client needs. In 2021 the Group strengthened its advantages by entering into more strategic partnerships and increasing the number of contract sales partners and the scope of online assistance.
The Group’s insurance sales network is composed of insurance agents, sales clerks and own points of sale. In 2021, the external sales network in Slovenia comprised 528 outsourcers registered for insurance agency activities – 450 in non-life insurance and 78 in life insurance. The Group also cooperates with roadworthiness test providers, car dealers, leasing companies, banks and travel agencies with great success. In markets outside Slovenia, the Group cooperates with more than 1,200 insurance agencies, with most partnerships being entered into in Serbia, particularly with vehicle inspection providers.
See Section 12.4.4 Responsibility to suppliers, Remuneration of insurance agencies and their sales staff for more information.
The number of outsourcers and communication channels was again increased to effectively settle claims, also by using a multi-channel approach. Clients have access to insurance services also via call centres, where they receive the necessary information; furthermore, clients may take out insurance, report a claim and request assistance services via the telephone or online.
Triglav Osiguranje a.d., Skopje – registered office
Zavarovalnica Triglav d.d., Ljubljana, Head quarters – registered office
Pozavarovalnica Triglav Re d.d., Ljubljana – registered office
Triglav Zdravstvena zavarovalnica d.d., Koper – registered office
The insurance company has agencies set up in all 12 regional units of Zavarovalnica Triglav and a health information office at its registered office.
Triglav Sklad d.o.o., Ljubljana – registered office
Triglav, Upravljanje nepremičnin d.o.o., Ljubljana – registered office
Triglav, upravljanje naložb in svetovalne storitve d.o.o., Ljubljana – registered office
Triglav penzisko društvo a.d., Skopje – registered office
Triglav INT, holdingška družba d.o.o., Ljubljana – registered office
Triglav Svetovanje, zavarovalno zastopanje d.o.o., Domžale – registered office
Triglav Svetovanje d.o.o., Zagreb – registered office
Triglav Svetovanje d.o.o., Belgrade – registered office
Triglav Svetovanje d.o.o., Sarajevo – registered office
Triglav Avtoservis d.o.o., Ljubljana – registered office
Diagnostični center Bled d.o.o., Bled – registered office
Triglav Osiguranje d.d., Zagreb – registered office
Lovćen Osiguranje a.d., Podgorica – registered office
Triglav Osiguranje d.d., Sarajevo – registered office
| Gross written premium for the current year* | Gross written premium for the preceding year in EUR | Gross written premium Index | ||||
|---|---|---|---|---|---|---|
| No. | 2021 | 2020 | 2019 | 2021/2020 | 2020/2019 | |
| 1 | Accident insurance | 25,235,448 | 25,696,568 | 26,948,216 | 98 | 95 |
| 2 | Health insurance | 787,154 | 926,557 | 728,634 | 85 | 127 |
| 3 | Land motor vehicle insurance | 129,298,413 | 127,536,359 | 124,555,113 | 101 | 102 |
| 4,614,328 | 4,175,198 | 3,154,574 | 111 | 132 |
|---|---|---|---|---|
| 3,683,029 | 2,390,519 | 1,928,948 | 154 | 124 |
|---|---|---|---|---|
| 7,689,364 | 994,760 | 308,649 | 773 | 322 |
|---|---|---|---|---|
| 6,858,896 | 5,321,053 | 4,724,407 | 129 | 113 |
|---|---|---|---|---|
| 60,796,633 | 58,291,995 | 56,134,878 | 104 | 104 |
|---|---|---|---|---|
| 165,026,243 | 130,253,821 | 115,060,305 | 127 | 113 |
|---|---|---|---|---|
| 109,621,258 | 106,754,958 | 102,352,357 | 103 | 104 |
|---|---|---|---|---|
| 2,779,402 | 1,693,326 | 1,988,419 | 164 | 85 |
|---|---|---|---|---|
| 1,390,962 | 950,911 | 811,322 | 146 | 117 |
|---|---|---|---|---|
| 42,719,369 | 38,619,888 | 39,134,047 | 111 | 99 |
|---|---|---|---|---|
| 21,883,872 | 19,137,654 | 22,962,440 | 114 | 83 |
|---|---|---|---|---|
| 3,600,839 | 2,775,316 | 2,414,586 | 130 | 115 |
|---|---|---|---|---|
| 2,948,793 | 2,574,281 | 2,807,251 | 115 | 92 |
|---|---|---|---|---|
| 595,434 | 641,309 | 700,475 | 93 | 92 |
|---|---|---|---|---|
| 16,480,055 | 16,052,704 | 15,513,341 | 103 | 103 |
|---|---|---|---|---|
| 606,009,493 | 544,787,178 | 522,227,961 | 111 | 104 |
|---|---|---|---|---|
| 79,238,943 | 79,466,230 | 82,300,599 | 100 | 97 |
|---|---|---|---|---|
| - | - | - | - | - |
|---|---|---|---|---|
| 88,785,604 | 76,121,938 | 79,947,507 | 117 | 95 |
|---|---|---|---|---|
| - | - | - | - | - |
|---|---|---|---|---|
| 20,316,064 | 18,880,523 | 17,655,904 | 108 | 107 |
|---|---|---|---|---|
| - | - | - | - | - |
|---|---|---|---|---|
| 188,340,610 | - | 174,468,691 | 179,904,010 | 108 | 97 |
|---|---|---|---|---|---|
| 794,350,103 | - | 719,255,868 | 702,131,971 | - | 110 | 102 |
|---|---|---|---|---|---|---|
| No. | Accident insurance | Health insurance | Land motor vehicle insurance | Railway insurance | Aircraf t insurance | Marine insurance | Good in transit insurance | Fire and natural disaster insurance | Other damage to property insurance | Motor TPL insurance | Aircraf t liability insurance | Marine liability insurance |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 24,111,394 | 403,141 | 118,746,789 | 3,179,050 | 512,084 | 4,049,207 | 4,377,329 | 36,435,356 | 70,839,126 | 95,758,179 | 274,980 | 1,204,425 |
| 2 | 24,663,008 | 524,519 | 117,426,679 | 3,341,775 | 152,316 | 532,087 | 2,964,486 | 36,264,515 | 65,409,914 | 95,717,270 | 136,593 | 816,484 |
| 3 | 25,235,448 | 787,154 | 129,298,413 | 4,614,328 | 3,683,029 | 7,689,364 | 6,858,896 | 60,796,633 | 165,026,243 | 109,621,258 | 2,779,402 | 1,390,962 |
| 4 | 96 | 51 | 92 | 69 | 14 | 53 | 64 | 60 | 43 | 87 | 10 | 87 |
| 5 | 96 | 57 | 92 | 80 | 6 | 53 | 56 | 62 | 50 | 90 | 8 | 86 |
| 13 | General liability insurance | 26,327,195 | 26,974,734 | 42,719,369 | 38,619,888 | 62 | 70 | |||
|---|---|---|---|---|---|---|---|---|---|---|
| 14 | Credit insurance | 15,642,754 | 14,731,626 | 21,883,872 | 19,137,654 | 71 | 77 | |||
| 15 | Suretyship insurance | 1,697,484 | 1,359,310 | 3,600,839 | 2,775,316 | 47 | 49 | |||
| 16 | Miscellaneous financial loss insurance | -738,912 | 871,524 | 2,948,793 | 2,574,281 | - | 34 | |||
| 17 | Legal expenses insurance | 479,720 | 498,143 | 595,434 | 641,309 | 81 | 78 | |||
| 18 | Travel assistance insurance | 15,565,586 | 15,265,369 | 16,480,055 | 16,052,704 | 94 | 95 | |||
| 19 | Total non-life insurance (No. 1-18) | 418,864,887 | 407,650,352 | 606,009,493 | 544,787,178 | 69 | 75 | |||
| 20 | Life insurance | 78,448,515 | 78,689,871 | 79,238,943 | 79,466,230 | 99 | 99 | |||
| 21 | Wedding insurance or birth insurance | - | - | - | - | - | ||||
| 22 | Unit-linked life insurance | 88,750,889 | 76,100,918 | 88,785,604 | 76,121,938 | 100 | 100 | |||
| 23 | Tontine | - | - | - | - | - | ||||
| 24 | Capital redemption insurance | 20,316,064 | 18,880,523 | 20,316,064 | 18,880,523 | 100 | 100 | |||
| 25 | Income protection insurance due to accident or illness | - | - | - | - | - | ||||
| 26 | Total life insurance (No. 20-25) | 187,515,467 | 173,671,311 | 188,340,610 | 174,468,691 | 100 | 100 | |||
| 27 | Total (No. 19+26) | 606,380,354 | 581,321,663 | 794,350,103 | 719,255,868 | 76 | 81 |
| No. | Gross claims paid for the current year* | Gross claims paid for the preceding year in EUR | Gross claims paid Index | 2021/2020 | 2020/2019 | |
|---|---|---|---|---|---|---|
| 1 | Accident insurance | 11,341,654 | 9,908,838 | 12,153,879 | 114 | 82 |
| 2 | Health insurance | 224,251 | 415,865 | 243,561 | 54 | 171 |
| 3 | Land motor vehicle insurance | 73,547,686 | 75,806,644 | 79,970,757 | 97 | 95 |
| 4 | Railway insurance | 1,351,160 | 623,235 | 1,000,537 | 217 | 62 |
| 5 | Aircraf t insurance | 427,733 | 44,785 | 11,954 | 955 | 375 |
| 6 | Marine insurance | 462,437 | -12,306 | 91,682 | - | - |
| 7 | Good in transit insurance | 1,330,731 | 1,511,975 | 1,395,610 | 88 | 108 |
| 8 | Fire and natural disaster insurance | 18,508,455 | 19,974,929 | 19,721,686 | 93 | 101 |
| 9 | Other damage to property insurance | 41,729,984 | 43,758,137 | 44,513,081 | 95 | 98 |
| 10 | Motor TPL insurance | 60,644,632 | 61,408,263 | 61,356,582 | 99 | 100 |
| 11 | Aircraf t liability insurance | 4,171 | 23,398 | 17,028 | 18 | 137 |
| 12 | Marine liability insurance | 244,093 | 298,968 | 13,980 | 82 | 2,139 |
| 13 | General liability insurance | 9,130,723 | 14,547,830 | 13,579,671 | 63 | 107 |
| 14 | Credit insurance | 9,691,229 | 12,026,300 | 11,404,559 | 81 | 105 |
| Suretyship insurance | 888,227 | 454,233 | 223,376 | 196 | 203 |
|---|---|---|---|---|---|
| Miscellaneous financial loss insurance | 1,485,539 | 871,232 | 2,434,591 | 171 | 36 |
| Legal expenses insurance | 8,277 | 15,000 | 2,560 | 55 | 586 |
| Travel assistance insurance | 12,837,972 | 11,386,584 | 10,922,757 | 113 | 104 |
| Total non-life insurance (No. 1-18) | 243,858,953 | 253,063,910 | 259,057,852 | 96 | 98 |
| Life insurance | 99,811,473 | 95,631,064 | 95,622,077 | 104 | 100 |
| Wedding insurance or birth insurance | - | - | - | - | - |
| Unit-linked life insurance | 50,176,608 | 48,338,150 | 57,234,124 | 104 | 84 |
| Tontine | - | - | - | - | - |
| Capital redemption insurance | 4,210,438 | 4,476,399 | 4,929,640 | 94 | 91 |
| Income protection insurance due to accident or illness | - | - | - | - | - |
| Total life insurance (No. 20-25) | 154,198,520 | 148,445,613 | 157,785,841 | 104 | 94 |
| Total (No. 19+26) | 398,057,473 | 401,509,523 | 416,843,693 | 99 | 96 |
| No. | Claims paid | Gross written premium in EUR | Claims ratio (%) | ||||
|---|---|---|---|---|---|---|---|
| 1 | Accident insurance | 11,341,654 | 9,908,838 | 25,235,448 | 25,696,568 | 45 | 39 |
| 2 | Health insurance | 224,251 | 415,865 | 787,154 | 926,557 | 28 | 45 |
| 3 | Land motor vehicle insurance | 73,547,686 | 75,806,644 | 129,298,413 | 127,536,359 | 57 | 59 |
| 4 | Railway insurance | 1,351,160 | 623,235 | 4,614,328 | 4,175,198 | 29 | 15 |
| 5 | Aircraf t insurance | 427,733 | 44,785 | 3,683,029 | 2,390,519 | 12 | 2 |
| 6 | Marine insurance | 462,437 | -12,306 | 7,689,364 | 994,760 | 6 | - |
| 7 | Good in transit insurance | 1,330,731 | 1,511,975 | 6,858,896 | 5,321,053 | 19 | 28 |
| 8 | Fire and natural disaster insurance | 18,508,455 | 19,974,929 | 60,796,633 | 58,291,995 | 30 | 34 |
| 9 | Other damage to property insurance | 41,729,984 | 43,758,137 | 165,026,243 | 130,253,821 | 25 | 34 |
| 10 | Motor TPL insurance | 60,644,632 | 61,408,263 | 109,621,258 | 106,754,958 | 55 | 58 |
| 11 | Aircraf t liability insurance | 4,171 | 23,398 | 2,779,402 | 1,693,326 | 0 | 1 |
| 12 | Marine liability insurance | 244,093 | 298,968 | 1,390,962 | 950,911 | 18 | 31 |
| 13 | General liability insurance | 9,130,723 | 14,547,830 | 42,719,369 | 38,619,888 | 21 | 38 |
| 14 | Credit insurance | 9,691,229 | 12,026,300 | 21,883,872 | 19,137,654 | 44 | 63 |
| 15 | Suretyship insurance | 888,227 | 454,233 | 3,600,839 | 2,775,316 | 25 | 16 | |
|---|---|---|---|---|---|---|---|---|
| 16 | Miscellaneous financial loss insurance | 1,485,539 | 871,232 | 2,948,793 | 2,574,281 | 50 | 34 | |
| 17 | Legal expenses insurance | 8,277 | 15,000 | 595,434 | 641,309 | 1 | 2 | |
| 18 | Travel assistance insurance | 12,837,972 | 11,386,584 | 16,480,055 | 16,052,704 | 78 | 71 | |
| 19 | Total non-life insurance (No. 1-18) | 243,858,953 | 253,063,910 | 606,009,493 | 544,787,178 | 40 | 46 | |
| 20 | Life insurance | 99,811,473 | 95,631,064 | 79,238,943 | 79,466,230 | 126 | 120 | |
| 21 | Wedding insurance or birth insurance | - | - | - | - | - | ||
| 22 | Unit-linked life insurance | 50,176,608 | 48,338,150 | 88,785,604 | 76,121,938 | 57 | 64 | |
| 23 | Tontine | - | - | - | - | - | ||
| 24 | Capital redemption insurance | 4,210,438 | 4,476,399 | 20,316,064 | 18,880,523 | 21 | 24 | |
| 25 | Income protection insurance due to accident or illness | - | - | - | - | - | ||
| 26 | Total life insurance (No. 20-25) | 154,198,520 | 148,445,613 | 188,340,610 | 174,468,691 | 82 | 85 | |
| 27 | Total (No. 19+26) | 398,057,473 | 401,509,523 | 794,350,103 | 719,255,868 | 50 | 56 |
| No. | Accident insurance | Health insurance | Land motor vehicle insurance | Railway insurance | Aircraf t insurance | Marine insurance | Good in transit insurance | Fire and natural disaster insurance | Other damage to property insurance | Motor TPL insurance | Aircraf t liability insurance | Marine liability insurance |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 8,672,975 | 230,509 | 34,096,829 | 559,582 | 154,791 | 822,118 | 1,422,276 | 19,781,204 | 32,123,263 | 30,362,056 | 144,705 | 341,804 |
| 2 | 8,074,586 | 237,192 | 31,615,432 | 369,676 | 250,308 | 170,356 | 1,283,497 | 18,026,524 | 30,751,757 | 27,965,790 | 257,201 | 283,531 |
| 3 | 25,235,448 | 787,154 | 129,298,413 | 4,614,328 | 3,683,029 | 7,689,364 | 6,858,896 | 60,796,633 | 165,026,243 | 109,621,258 | 2,779,402 | 1,390,962 |
| 4 | 25,696,568 | 926,557 | 127,536,359 | 4,175,198 | 2,390,519 | 994,760 | 5,321,053 | 58,291,995 | 130,253,821 | 106,754,958 | 1,693,326 | 950,911 |
| 5 | 34 | 29 | 26 | 12 | 4 | 11 | 21 | 33 | 19 | 28 | 5 | 25 |
| 6 | 31 | 26 | 25 | 9 | 10 | 17 | 24 | 31 | 24 | 26 | 15 | 30 |
| 13 | General liability insurance | 12,282,912 | 11,731,195 | 42,719,369 | 38,619,888 | 29 | 30 |
|---|---|---|---|---|---|---|---|
| 14 | Credit insurance | 5,172,811 | 5,174,563 | 21,883,872 | 19,137,654 | 24 | 27 |
| 15 | Suretyship insurance | 906,404 | 753,988 | 3,600,839 | 2,775,316 | 25 | 27 |
| 16 | Miscellaneous financial loss insurance | 806,297 | 838,710 | 2,948,793 | 2,574,281 | 27 | 33 |
| 17 | Legal expenses insurance | 524,741 | 441,780 | 595,434 | 641,309 | 88 | 69 |
| 18 | Travel assistance insurance | 7,752,097 | 6,855,949 | 16,480,055 | 16,052,704 | 47 | 43 |
| 19 | Total non-life insurance (No. 1-18) | 156,157,374 | 145,082,034 | 606,009,493 | 544,787,178 | 26 | 27 |
| 20 | Life insurance | 17,535,773 | 15,418,907 | 79,238,943 | 79,466,230 | 22 | 19 |
| 21 | Wedding insurance or birth insurance | - | - | - | - | - | - |
| 22 | Unit-linked life insurance | 18,324,915 | 17,120,559 | 88,785,604 | 76,121,938 | 21 | 22 |
| 23 | Tontine | - | - | - | - | - | - |
| 24 | Capital redemption insurance | 3,030,016 | 2,329,347 | 20,316,064 | 18,880,523 | 15 | 12 |
| 25 | Income protection insurance due to accident or illness | - | - | - | - | - | - |
| 26 | Total life insurance (No. 20-25) | 38,890,703 | 34,868,813 | 188,340,610 | 174,468,691 | 21 | 20 |
| 27 | Total (No. 19+26) | 195,048,077 | 179,950,848 | 794,350,103 | 719,255,868 | 25 | 25 |
| No. | Acquisition costs | Gross written premium in EUR | Acquisition costs | Gross written premium | Acquisition costs as % of gross written premium |
|---|---|---|---|---|---|
| 1 | Accident insurance | 1,223,219 | 25,235,448 | 4.8 | 3.5 |
| 2 | Health insurance | 8,814 | 787,154 | 1.1 | 0.9 |
| 3 | Land motor vehicle insurance | 3,885,870 | 129,298,413 | 3.0 | 3.4 |
| 4 | Railway insurance | 48,155 | 4,614,328 | 1.0 | 0.1 |
| 5 | Aircraf t insurance | 8,031 | 3,683,029 | 0.2 | 0.5 |
| 6 | Marine insurance | 567,938 | 7,689,364 | 7.4 | 0.5 |
| 7 | Good in transit insurance | 387,937 | 6,858,896 | 5.7 | 5.6 |
| 8 | Fire and natural disaster insurance | 2,356,688 | 60,796,633 | 3.9 | 3.4 |
| 9 | Other damage to property insurance | 5,168,814 | 165,026,243 | 3.1 | 2.6 |
| 10 | Motor TPL insurance | 6,052,533 | 109,621,258 | 5.5 | 5.0 |
| 11 | Aircraf t liability insurance | 2,997 | 2,779,402 | 0.1 | 0.2 |
| 12 | Marine liability insurance | 99,227 | 1,390,962 | 7.1 | 6.8 |
| 13 | General liability insurance | 2,199,986 | 42,719,369 | 5.1 | 5.3 |
| 14 | Credit insurance | 1,122,319 | 21,883,872 | 5.1 | 4.4 |
| Type of Insurance | Gross Written Premium | Net Written Premium | Claims Incurred | Net Claims Incurred | Acquisition Costs (%) | Other Costs (%) |
|---|---|---|---|---|---|---|
| 15 Suretyship insurance | 277,576 | 202,023 | 3,600,839 | 2,775,316 | 7.7 | 7.3 |
| 16 Miscellaneous financial loss insurance | 172,472 | 166,036 | 2,948,793 | 2,574,281 | 5.8 | 6.4 |
| 17 Legal expenses insurance | 225,651 | 130,231 | 595,434 | 641,309 | 37.9 | 20.3 |
| 18 Travel assistance insurance | 617,728 | 304,270 | 16,480,055 | 16,052,704 | 3.7 | 1.9 |
| 19 Total non-life insurance (No. 1-18) | 24,425,956 | 19,994,366 | 606,009,493 | 544,787,178 | 4.0 | 3.7 |
| 20 Life insurance | 4,544,110 | 2,988,995 | 79,238,943 | 79,466,230 | 5.7 | 3.8 |
| 21 Wedding insurance or birth insurance | - | - | - | - | - | - |
| 22 Unit-linked life insurance | 5,329,105 | 5,519,076 | 88,785,604 | 76,121,938 | 6.0 | 7.3 |
| 23 Tontine | - | - | - | - | - | - |
| 24 Capital redemption insurance | 75,970 | 48,289 | 20,316,064 | 18,880,523 | 0.4 | 0.3 |
| 25 Income protection insurance due to accident or illness | - | - | - | - | - | - |
| 26 Total life insurance (No. 20-25) | 9,949,186 | 8,556,361 | 188,340,610 | 174,468,691 | 5.3 | 4.9 |
| 27 Total (No. 19+26) | 34,375,142 | 28,550,727 | 794,350,103 | 719,255,868 | 4.3 | 4.0 |
| No. | Accident insurance | Health insurance | Land motor vehicle insurance | Railway insurance | Aircraf t insurance | Marine insurance | Good in transit insurance | Fire and natural disaster insurance | Other damage to property insurance | Motor TPL insurance | Aircraf t liability insurance | Marine liability insurance | General liability insurance | Credit insurance |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 9,121,682 | 213,843 | 859,551 | 184,020 | 635,964 | 1,346,910 | 9,539,011 | 34,535,524 | 41,872,511 | -35,691 | 258,624 | 6,442,374 | 816,479 | |
| 2 | 6,609,444 | 370,242 | 67,900,878 | 2,332,825 | 320,915 | -205,528 | 824,383 | 15,383,091 | 33,555,100 | 67,050,540 | -64,456 | 438,511 | -1,430,895 | 1,214,640 |
| 3 | 24,183,142 | 405,936 | 117,492,243 | 2,532,086 | 397,629 | 2,962,887 | 4,308,714 | 36,638,740 | 68,237,187 | 95,040,153 | 175,361 | 1,072,262 | 26,162,127 | 14,346,889 |
| 4 | 25,197,530 | 470,703 | 117,077,028 | 3,368,876 | 88,826 | 392,617 | 2,871,621 | 35,832,757 | 64,658,436 | 96,431,180 | 182,755 | 691,619 | 26,615,217 | 18,718,207 |
| 5 | 38 | 53 | 58 | 34 | 46 | 21 | 31 | 26 | 51 | 44 | - | 24 | 25 | 6 |
| 6 | 26 | 79 | 58 | 69 | 361 | - | 29 | 43 | 52 | 70 | - | 63 | - | 6 |
| Suretyship insurance | 293,166 | -5,971 | 1,887,076 | 1,144,956 | 16 | - |
|---|---|---|---|---|---|---|
| Miscellaneous financial loss insurance | 693,901 | 368,944 | -486,163 | 884,758 | - | 42 |
| Legal expenses insurance | -32,338 | 53,508 | 465,841 | 516,641 | - | 10 |
| Travel assistance insurance | 12,092,879 | 10,680,346 | 15,400,394 | 15,065,765 | 79 | 71 |
| Total non-life insurance (No. 1-18) | 186,739,289 | 205,132,278 | 411,222,504 | 410,209,492 | 45 | 50 |
| Life insurance | 101,319,177 | 95,750,124 | 97,382,393 | 96,716,441 | 104 | 99 |
| Wedding insurance or birth insurance | - | - | - | - | - | - |
| Unit-linked life insurance | 50,171,484 | 48,309,493 | 69,834,039 | 58,061,390 | 72 | 83 |
| Tontine | - | - | - | - | - | - |
| Capital redemption insurance | 4,210,438 | 4,476,399 | 20,316,064 | 18,880,523 | 21 | 24 |
| Income protection insurance due to accident or illness | - | - | - | - | - | - |
| Total life insurance (No. 20-25) | 155,701,100 | 148,536,016 | 187,532,496 | 173,658,354 | 83 | 86 |
| Total (No. 19+26) | 342,440,389 | 353,668,294 | 598,755,001 | 583,867,846 | 57 | 61 |
| (Net claims paid + Change in claims provisions + Net operating expenses)*100 | Net premium income in EUR | Net claims paid + Change in claims provisions + Net operating expenses | Net premium income | Combined claims ratio (%) | ||||
|---|---|---|---|---|---|---|---|---|
| No. | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 7 = 3/5*100 | 8 = 4/6*100 |
| 1 | Non-life insurance | 324,345,168 | 335,005,046 | 411,222,504 | 410,209,492 | 79 | 82 |
| Operating expenses*100 | Net premium income in EUR | Operating expenses | Net premium income | Expense ratio (%) |
|---|---|---|---|---|
| No. | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||
|---|---|---|---|---|---|---|---|---|
| 1 | Life insurance | 38,890,703 | 34,868,813 | 187,532,496 | 173,658,353 | 21 | 20 |
(Claims paid + Change in insurance technical provisions) * 100
Net written premium in EUR
| No. | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
| 1 | Life insurance | 235,795,772 | 168,708,051 | 187,515,467 | 173,671,312 | 126 | 97 |
Investment return * 100
(starting balance for the year + ending balance for the year) / 2 in EUR
| No. | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
| 1 | Asset backing liabilities | 10,587,574 | 15,824,767 | 751,765,118 | 718,690,591 | 1.4 | 2.2 |
| 2 | Guarantee fund backing traditional life insurance | 14,715,936 | 25,117,942 | 780,794,982 | 804,452,488 | 1.9 | 3.1 |
| 3 | Guarantee fund backing S VPI | 4,718,672 | 7,685,057 | 238,957,091 | 225,407,801 | 2.0 | 3.4 |
| 4 | Guarantee fund backing S VPI during the annuity payout period | 561,902 | 1,844,913 | 70,049,069 | 60,151,483 | 0.8 | 3.1 |
| 5 | Guarantee fund backing unit-linked insurance | 69,625,937 | 6,146,060 | 459,105,483 | 415,971,560 | 15.2 | 1.5 |
| 6 | Investments financed from insurance technical provisions | 9,312,530 | 8,857,301 | 369,312,925 | 354,957,744 | 2.5 | 2.5 |
| 7 | Total | 109,522,551 | 65,476,040 | 2,669,984,670 | 2,579,631,665 | 4.1 | 2.5 |
| No. | Accident insurance | Health insurance | Land motor vehicle insurance | Railway insurance | Aircraf t insurance | Marine insurance | Good in transit insurance | Fire and natural disaster insurance | Other damage to property insurance | Motor TPL insurance | Aircraf t liability insurance | Marine liability insurance |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 17,680,459 | 13,120 | 17,134,841 | 6,113,036 | 498,393 | 608,592 | 1,846,688 | 10,973,756 | 27,564,239 | 157,639,676 | 585,935 | 788,206 |
| 2 | 19,305,185 | 16,325 | 15,478,548 | 6,338,678 | 327,719 | 157,051 | 1,381,542 | 12,453,443 | 168,214,401 | 621,720 | 745,431 | |
| 3 | 24,183,142 | 405,936 | 117,492,243 | 2,532,086 | 397,629 | 2,962,887 | 4,308,714 | 36,638,740 | 68,237,187 | 95,040,153 | 175,361 | 1,072,262 |
| 4 | 25,197,530 | 470,703 | 117,077,028 | 3,368,876 | 88,826 | 392,617 | 2,871,621 | 35,832,757 | 64,658,436 | 96,431,180 | 691,619 | |
| 5 | 73 | 3 | 15 | 241 | 125 | 21 | 43 | 30 | 40 | 166 | 334 | 74 |
| 6 | 77 | 3 | 13 | 188 | 369 | 40 | 48 | 35 | 38 | 174 | 340 | 108 |
| 13 | General liability insurance | 83,997,640 | 85,485,384 | 26,162,127 | 26,615,217 | 321 | 321 |
|---|---|---|---|---|---|---|---|
| 14 | Credit insurance | 1,707,665 | 2,131,635 | 14,346,889 | 18,718,207 | 12 | 11 |
| 15 | Suretyship insurance | 19,932 | -69,485 | 1,887,076 | 1,144,956 | 1 | - |
| 16 | Miscellaneous financial loss insurance | 1,245,341 | 1,074,637 | -486,163 | 884,758 | - | 121 |
| 17 | Legal expenses insurance | 73,293 | 109,220 | 465,841 | 516,641 | 16 | 21 |
| 18 | Travel assistance insurance | 2,176,686 | 2,265,488 | 15,400,394 | 15,065,765 | 14 | 15 |
| 19 | Total non-life insurance (No. 1-18) | 330,667,499 | 340,332,034 | 411,222,504 | 410,209,492 | 80 | 83 |
| 20 | Life insurance | 21,432,296 | 19,679,961 | 97,382,393 | 96,716,441 | 22 | 20 |
| 21 | Wedding insurance or birth insurance | - | - | - | - | - | - |
| 22 | Unit-linked life insurance | -28,409 | -28,409 | 69,834,039 | 58,061,390 | - | - |
| 23 | Tontine | - | - | - | - | - | - |
| 24 | Capital redemption insurance | 0 | 0 | 20,316,064 | 18,880,523 | - | - |
| 25 | Income protection insurance due to accident or illness | - | - | - | - | - | - |
| 26 | Total life insurance (No. 20-25) | 21,403,887 | 19,651,552 | 187,532,496 | 173,658,354 | 11 | 11 |
| 27 | Total (No. 19+26) | 352,071,386 | 359,983,585 | 598,755,001 | 583,867,846 | 59 | 62 |
| Net written premium in EUR | Gross profit/loss | Gross profit/loss for the year as % of net written premium | |||||
|---|---|---|---|---|---|---|---|
| Zap, št, 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 1 | 2 |
| Non-life insurance | 78,538,655 | 64,691,335 | 418,864,887 | 407,650,351 | 18.8 | 15.9 | |
| Life insurance | 7,149,957 | 6,378,629 | 187,515,467 | 173,671,312 | 3.8 | 3.7 | |
| Total | 85,688,612 | 71,069,964 | 606,380,354 | 581,321,663 | 14.1 | 12.2 |
| (equity starting balance for the year + equity ending balance for the year)/2 in EUR | Gross profit/loss | Average balance of equity | Gross profit/loss for the year as % of average equity | |||
|---|---|---|---|---|---|---|
| No. | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| Non-life insurance | 78,538,655 | 64,691,335 | 555,544,412 | 506,290,745 | 14.1 | 12.8 |
| Life insurance | 7,149,957 | 6,378,629 | 104,068,140 | 105,950,978 | 6.9 | 6.0 |
| No. | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | Gross prot/loss *100 |
|---|---|---|---|---|---|---|---|
| 1 | Non-life insurance | 78,538,655 | 64,691,335 | 1,387,484,403 | 1,322,982,979 | 5.7 | 4.9 |
| 2 | Life insurance | 7,149,957 | 6,378,629 | 1,683,923,777 | 1,644,056,469 | 0.4 | 0.4 |
| 3 | Total | 85,688,612 | 71,069,964 | 3,071,408,180 | 2,967,039,448 | 2.8 | 2.4 |
| No. | Gross profit/loss | Number of shares | Gross profit/loss for the year per share | ||||
|---|---|---|---|---|---|---|---|
| 1 | Non-life insurance | 78,538,655 | 64,691,335 | 15,837,350 | 15,837,350 | 5.0 | 4.1 |
| 2 | Life insurance | 7,149,957 | 6,378,629 | 6,897,798 | 1.0 | 0.9 | |
| 3 | Total | 85,688,612 | 71,069,964 | 22,735,148 | 22,735,148 | 3.8 | 3.1 |
| No. | Receivables from reinsurance and reinsurer's share of insurance technical provisions* | Equity in EUR | Receivables from reinsurance and reinsurer's share of insurance technical provisions | Equity | Receivables from reinsurance and reinsurer's share of insurance technical provisions as % of equity (%) | ||
|---|---|---|---|---|---|---|---|
| 1 | Non-life insurance | 151,216,498 | 117,204,470 | 577,396,814 | 533,692,009 | 26.2 | 22.0 |
| Net written premium* | Average balance of equity and insurance technical provisions in EUR | Net written premium | Average balance of equity and insurance technical provisions | Net written premium as % of average balance of equity and insurance technical provisions (%) | |||
|---|---|---|---|---|---|---|---|
| No. | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| 1 | Non-life insurance | 418,864,887 | 407,650,351 | 1,118,415,083 | 1,071,238,466 | 37.5 | 38.1 |
| 2 | Life insurance | 187,515,467 | 173,671,312 | 1,659,981,630 | 1,612,862,758 | 11.3 | 10.8 |
| 3 | Total | 606,380,354 | 581,321,663 | 2,778,396,713 | 2,684,101,224 | 21.8 | 21.7 |
| Average balance of net insurance technical provisions* | 100 |
|---|---|
| Net premium income in EUR | |
| Average balance of net insurance technical provisions | |
| Average balance of net insurance technical provisions as % of net premium income (%) |
| No. | 2021 | 2020 | 2021 | 2020 | |||
|---|---|---|---|---|---|---|---|
| 1 | Non-life insurance | 562,870,672 | 564,947,721 | 411,222,504 | 410,209,492 | 136.9 | 137.7 |
| 2 | Life insurance | 1,555,913,490 | 1,506,911,781 | 187,532,496 | 173,658,353 | 829.7 | 867.7 |
| 3 | Total | 2,118,784,161 | 2,071,859,502 | 598,755,000 | 583,867,845 | 353.9 | 354.9 |
| No. | 2021 | 2020 | Liabilities in EUR | Equity | Liabilities | Equity as % of liabilities (%) |
|---|---|---|---|---|---|---|
| 1 | Non-life insurance | 577,396,814 | 533,692,009 | 1,425,009,978 | 1,349,958,827 | 40.5 |
| 2 | Life insurance | 97,825,117 | 110,311,163 | 1,704,592,223 | 1,663,255,330 | 5.7 |
| 3 | Total | 675,221,932 | 644,003,171 | 3,129,602,201 | 3,013,214,158 | 21.6 |
| No. | 2021 | 2020 | Liabilities in EUR | Net insurance technical provisions | Liabilities | Net insurance technical provisions as % of liabilities (%) |
|---|---|---|---|---|---|---|
| 1 | Non-life insurance | 560,345,943 | 565,395,400 | 1,425,009,978 | 1,349,958,827 | 39.3 |
| 2 | Life insurance | 1,584,084,338 | 1,527,742,641 | 1,704,592,223 | 1,663,255,330 | 92.9 |
| 3 | Total | 2,144,430,281 | 2,093,138,041 | 3,129,602,201 | 3,013,214,158 | 68.5 |
| No. | 2021 | 2020 | Net insurance technical provisions in EUR | Net life insurance technical provisions | Net life insurance technical provisions as % of net insurance technical provisions (%) |
|---|---|---|---|---|---|
| 1 | 1,548,454,207 | 1,490,283,181 | 2,144,430,281 | 2,093,138,041 | 72.2 |
| No. | 2021 | 2020 | Gross written premium (ending number of employees for the previous year + ending number of employees for the year)/2 in EUR | Averag e number of employees | Gross written premium per number of permanent employees |
|---|---|---|---|---|---|
| 1 | 794,350,103 | 719,255,868 | 2,245 | 2,249 | 353,831 |
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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2021
Furthermore, it maintained strong capital strength and liquidity, which was confirmed by the reaffirmed “A” credit rating.
The Triglav Group was well capitalised in 2021. Its capital strength is based on its quality capital structure, which to a lesser extent also includes subordinated liabilities. The Group achieved high capital adequacy despite ongoing uncertainties in the business environment and taking into consideration the existing dividend policy. After the Insurance Supervision Agency temporarily suspended the payment of dividends in 2020, Zavarovalnica Triglav paid them again in 2021.
The Group’s adequate capital and financial strength was additionally confirmed by the long-term credit rating of “A” and the financial strength rating of “A” assigned to the Group by the credit rating agencies S&P Global Ratings and AM Best. Both ratings have a stable medium-term outlook. See Section 6.6 of the Business Report for more information.
Zavarovalnica Triglav’s adequate liquidity was maintained through regular management of its liquidity risk. See sections 1.5 and 2.6 of Risk Management for more information about the liquidity risk.
Throughout the year, the Company adapted to changes in financial markets, uncertainties due to higher inflation, increased volatility in energy prices and disruptions in supply chains. See Section Challenges and opportunities of today and Section 2.4 of Risk Management for more information.
The Company also responded to new risks in the environment, which were regularly monitored, by upgrading its risk management system.
The comprehensive risk management system plays the key role in the achievement of the Triglav Group’s strategic objectives. It enables reliable and effective operations even in an uncertain situation, such as the COVID-19 pandemic.
to continuously identify, assess and control both assumed and potential risks. This allows the Company to take appropriate and timely action and keep its risk profile at the level defined in its risk appetite. The system is clear, transparent and well-documented. In subsidiaries, it is developed according to the parent company’s principles and by adhering to the principle of proportionality.
The system of powers and responsibilities in risk management is based on the “three lines of defence” model.
Even though the Management Board and the Supervisory Board are not directly part of the three lines of defence, they play a key role in the risk management system. They both are key stakeholders serviced by the three lines of defence. In addition, they are responsible for the operation of the system and defining organisational goals and strategies for achieving them. Furthermore, they establish the management structure and processes that ensure optimal management of assumed risks.
| Supervisory Board and Audit Committee | Management Board |
|---|---|
| • Day-to-day management of specific business risks. | • Definition of the risk management system. |
| • Responsibility for risk identification and underwriting. | • Definition and execution of the identification, measurement and monitoring procedures. |
| • Definition of the exposure limit system. | |
| First line of defence | Second line of defence |
| Risk Underwriting | Risk Management |
| Business functions at all levels | Competent risk management committees, the risk management function, the actuarial function, the compliance function and other related areas |
| • Performance of regular independent effectiveness and efficiency reviews of the internal control system and risk management |
The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2021
The Supervisory Board gives consent to the Management Board with respect to the written rules of the risk management system at the highest level. Within the scope of its powers and responsibilities, the Supervisory Board takes note of the key functions’ reports, and at its sessions also of the risk profile, capital adequacy and the key findings of the own risk and solvency assessment process. Moreover, it gives its approval to the Solvency and Financial Condition Report.
It supervises the adequacy and effectiveness of the risk management system. Furthermore, the Audit Committee focuses on monitoring the comprehensive risk profile of the Group’s parent company. It also participates in designing stress tests and scenarios, which are used to check the level of capital adequacy as part of own risk and solvency assessment.
The Management Board defines the business objectives and the risk appetite. It approves the risk management strategy and related policies as well as the work plans of each key function. It also ensures an effective risk management system. Furthermore, the Management Board is regularly briefed on capital adequacy and approves the most important reports drafted by the key functions, including the Regular Supervisory Report, the Solvency and Financial Condition Report, the Risk Report, and the Own Risk and Solvency Assessment Report.
Independently or within a committee, it actively participates in and directs the own risk and solvency assessment process, which checks business decisions and defines the guidelines of the risk management system. The Management Board also ensures the risk management system’s compliance with the capital planning and management process.
The Company’s business functions operate within the framework of the first line of defence. They are responsible for risk underwriting and identification in their respective work area in accordance with the Management Board’s guidelines, as well as for the management of specific risks within the allowed exposure limits.
The key functions of Zavarovalnica Triglav’s governance system are organised as independent organisational units. They comprise the risk management function, the non-life and life insurance actuarial functions, the compliance function, and the internal audit function. They are all part of the second line of defence, except for the internal audit function, which is part of the third line of defence. All key functions cooperate with one another and regularly exchange the necessary information.
In risk management, they also cooperate with other control functions at Group level. They perform their duties and responsibilities independently from one another and independently from other organisational units of the Company. The key function holders meet the fit and proper requirements defined by the applicable internal rules for the respective area.
The risk management function is responsible for the establishment and coordinated and continuous operation of the integrated risk management system in accordance with the Management Board’s guidelines. Furthermore, it monitors the general risk profile, methodologically consistent development of the risk management system and the harmonisation of main risk assessment models, performs the underlying risk analyses, reports on risk exposures and assesses capital adequacy using the regulatory method and other capital models. In line with the Management Board’s guidelines, the risk management function coordinates and performs own risk and solvency assessment, checks the risk profile on a quarterly basis and reports thereon to the Management and Supervisory Boards, drafts other regulatory reports – the Solvency and Financial Condition Report and the Regular Supervisory Report, as well as reports to regulatory bodies as required.
To any identified changes, and co-create the internal controls for ensuring compliance of a particular process, line of business, or the Company as a whole by providing guidelines and making recommendations and proposals. In addition, the compliance function plays a major role in ensuring fair and transparent operations by monitoring adherence to the ethical commitments and overseeing their implementation in practice.
The actuarial function coordinates and calculates insurance technical provisions using appropriate methods, models and assumptions, as well as comprehensive, high-quality and relevant data. It also verifies the appropriateness of the overall underwriting policy and reinsurance, and delivers an opinion whether the amount of the premium of individual products is sufficient to cover all the liabilities arising from insurance contracts. Furthermore, it verifies the adequacy of reinsurance and participates in own risk and solvency assessment, while coordinating and calculating capital requirements for underwriting risks. It reports on important findings to the Management Board and the Supervisory Board. The actuarial function operates separately for non-life and life insurance.
The internal audit function performs regular and comprehensive control of the Company’s operations. This is achieved by reviewing and assessing the adequacy and effectiveness of the Company’s governance, risk management and control procedures in a planned and methodical manner and by making recommendations for their improvement. Moreover, it is responsible for the quality and constant development of internal auditing at the Company. It cooperates with external auditors and other supervisory bodies, as well as monitors the implementation of internal and external auditors’ recommendations. Apart from participating in internal audits in other Group companies, the internal audit function also provides advisory services in agreement with the Management Board and the management of divisions.
All key functions are in charge of not only transferring the know-how and best practices to other Group members but also of ensuring their coordinated operation.
Primarily responsible for the specified risk subtypes.
non-life insurance underwriting risks
Primarily responsible for the specified risk types and monitoring and control of the effectiveness of the risk management system within its powers, in accordance with the methodologies approved by the Risk Management Committee.
liquidity risk, market risks, life insurance underwriting and pension risks, credit risks of the investment portfolio
non-life insurance underwriting and credit risks
operational risks
project risks
compliance risks, reputational risks and sustainability risks
The system of committees that are part of the risk management system was expanded in 2021 to include the Compliance and Sustainable Development Committee, which took over the monitoring of reputational and sustainability risks. This committee operates at the level of the Group and the Company, and its purpose is preventive. It assesses and reduces compliance risks (risks related to non-compliance of the Company’s operations with regulations, internal rules, applicable acts and commitments) and reputational risks (risks related to the reputation of both the Company and the Group). In this way, sustainability risk management was even more comprehensively integrated into the Group’s risk management system.
The Risk Management Committee deals with all material risks of the Company and the Group. It also assesses capital and strategic or non-financial risks not within the competence of other committees.
The Assets and Liabilities Management Committee assesses market risks, including credit risks arising from exposure to banks and banking groups, life underwriting risks and liquidity risk.
The Non-life Insurance Committee is responsible for non-life underwriting risks and credit risks related to exposure to reinsurers.
The Operational Risk Committee deals with operational risks, which include information security risks, cyber risks and business continuity risks, as well as compliance risks and outsourcing risks.
The Non-Life and Life Insurance Product Forums assess the development of new insurance products and any risks related thereto.
The Project Steering Committee deals with project risks and reports thereon to other competent committees.
The Compliance and Sustainable Development Committee is responsible for compliance risks, reputational risks and sustainability risks.
Risk management first takes place at the level of individual subsidiaries and then at Group level. At the level of individual subsidiaries, the management body and the persons in charge of risk management are responsible for the establishment and operation of the risk management system.
The Subsidiary Management Division coordinates the drawing up of minimum standards for Group companies, which also include minimum standards for risk management. The parent company’s Risk Management Department is responsible for their preparation and transfer to the subsidiaries in cooperation with the Subsidiary Management Division. By enforcing 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 comprehensive risk management process at Zavarovalnica Triglav is based on the Group’s strategy and the Company’s business plan, which define the risk appetite. The risk appetite sets out material risks the Group is willing to assume to achieve its objectives and the key indicators by which these risks are measured and monitored, including target values and limits. The Company has zero tolerance for all risks that it is not willing to assume in the course of its operations.
One of the key indicators for measuring and monitoring risks is the capital adequacy ratio. Its target range and tolerance are consistent with the dividend policy and defined in the framework of the capital management of both the Company and the Group. 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.
Such as changes to the guidelines for accepting transactions and adjustments to premium rates and the limit system, risk transfers and similar. This increases the readiness of Group members for identified risks and upgrades the internal control system, thereby building an effective system for strategic decision-making.
The risk management process consists of risk identification, measurement or assessment, management, monitoring and reporting. Proper risk assessment requires the correct and comprehensive capture of data on risk exposure, good knowledge of the properties (volatility) of factors of specific risks and their impacts on key indicators defined in the Risk Appetite Statement.
The standard Solvency II formula (the regulatory method), which is based on standard volatility and own risk exposure, is primarily used for risk assessment. This formula is supplemented with the Company’s own assessments of the volatility of risk factors at the same confidence level and over the same period. In this way, its adequacy is regularly monitored. Risks are additionally assessed according to the methodology of the credit rating agency S&P, which is based on a 99.7% confidence level over a period of one year.
At least once a year, in the context of the own risk and solvency assessment process, a comprehensive analysis is performed to assess the appropriateness of the regulatory method. The results of the internal risk measurement method are also taken into account in the final assessment of appropriateness.
The established processes of notifying the key functions about transactions with increased risks. At the aggregate level, the concentration of exposure and increased volatility, where the Group’s exposure is higher, are monitored regularly. Material detected or identified risks are included in the own risk and solvency assessment process.
The Management Board and the Supervisory Board are regularly informed about the individual types of risks assumed for both the Company and the Group, as well as about the overall risk. The risk report, which documents the results of regular risk measurement and monitoring, is drawn up on a quarterly basis and covers all key risk indicators, including the trends, limits and recommendations of the Risk Management Department.
A well-integrated risk management system is essential to effective capital management. Ensuring capital adequacy within the target range allows the Group at any given moment to have a sufficient amount of capital in relation to the measurable risks assumed. In addition to maintaining regular capital adequacy, the Company plans and assesses the existing capital level and its future adequacy. As part of the Group’s regular capital management to ensure its optimal composition and cost efficiency, the Company issued a subordinated bond in 2019, which is taken into account in capital adequacy.
When deciding on entering into a business transaction, the Company consistently assesses its profitability in relation to the assumed risks, thereby pursuing the target capital adequacy, and takes into account the criterion of earning appropriate profit for the shareholders. The goal of capital management is to guarantee the safety and profitability of operations as well as a long-term and stable return on investment by paying out dividends based on the predefined criteria in the dividend policy.
The Triglav Group was adequately capitalized and profitable in 2021. The amount of available own funds to cover regulatory capital requirements is regularly measured both for individual insurance and financial companies within the Group and for the Group as a whole.
The target capital adequacy of the Group 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. In addition to maintaining regular capital adequacy, the Company plans and assesses the existing capital level and its future adequacy. This allows it to adapt to any changes in the environment affecting capital adequacy and to optimize capital allocation.
Capital adequacy also has a significant impact on the Company’s credit ratings. Therefore, when making business decisions, it is taken into account how they impact the results of the models of major credit rating agencies. The Group’s capital model is assessed by the credit rating agencies S&P Global Ratings and AM Best. See Section 6.6 of the Business Report for more information on the credit rating.
| Possibility of a more aggressive growth of business volume, assessment of potential changes in the business strategy | Surplus capital adequacy | Target capital adequacy |
|---|---|---|
| > 250% | 200–250% | |
| 150–200% | 130–150% | |
| < 130% |
Following the adoption of the Triglav Group’s commitment to sustainability in 2020, the content related to sustainability and sustainability risks was upgraded in 2021 with the Group’s strategic ambitions in this field (see the section The Triglav Group’s strategic ambitions in sustainable development (ESG) in Section 4.1 of the Business Report for more information), incorporating care for sustainable development into the Company’s organisational structure. The Company is building
A comprehensive sustainability risk management system; sustainability risks are part of non-financial risks (see Section 1.5). To this end, the risk appetite and internal risk management rules were defined for sustainability risks. At Group level, sustainability-related activities are coordinated and directed by the Sustainable Development Coordinator. The Company’s risk management function is responsible for the optimal integration of sustainability aspects of business into the risk management system, which are monitored by the Compliance and Sustainable Development Committee. The latter reports to the Risk Management Committee, which is responsible for the comprehensive management of the Group’s most material risks. Decisions are made by the Management Board. See Section 12 of the Business Report for more information about sustainability aspects.
| Risk Management Committee (RMC) | Comprehensive risk management |
|---|---|
| Compliance and Sustainable Development Committee | Risk Management Department |
| Sustainable Development Coordinator | Risk appetite and other internal risk management rules |
| The Triglav Group's strategic ambitions in sustainable development (ESG) | Management Board |
| Sustainability risk management |
The most important types of risk and methods of their management are described below. Exposure to individual types of risk and risk assessment are presented in more detail in Section 2 of Risk Management. The Group uses risk classification in accordance with the standard formula set out in the Insurance Act (ZZavar-1) for internal risk monitoring. In its operations, the Company assumes the risks listed below.
Insurance and reinsurance, and life insurance, which includes pension insurance. Insurance claims or the resulting insurance liabilities are divided into life insurance liabilities that depend on biometric factors (such as age, gender and health status of the person insured) and non-life insurance liabilities (independent of biometric factors).
Non-life insurance liabilities include all (potential) non-life insurance claims except non-life annuities – these 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 (potential) accident insurance claims, which are part of life insurance policies, but the claims do not depend on the biometric factors of the injured parties.
Life insurance liabilities arise from insurance policies for traditional, unit-linked and pension insurance. Pension insurance also includes supplemental voluntary pension insurance provided by the Company in the context of the second pillar of the pension system.
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. The adequacy test of the latter for own insurance portfolio is performed annually as part of own risk and solvency assessment. This shows, on average, lower risks than predicted by the standard formula. However, higher volatility in claims ratios results in higher uncertainty and/or risks. Premium risk also depends on the diversification of exposures between different various insurance segments in the portfolio. Thus, the Group pursues an effective diversification of the portfolio in different insurance segments. Premium risk is managed through efficient monitoring of claims experience and a timely adjustment of pricing policy.
Underwriting risksMarket risksCredit risksLiquidity riskOperational risksNon-financial risksPotential or emerging risks
monitored by regularly checking the past amount of formed provisions in relation to realised claims and, based on the findings, by adapting the existing processes of creating provisions.
Non-life insurance catastrophe risk means the risk of an unexpected one-time loss event with a loss potential that is considerably higher than the estimated average loss of insurance companies in the Group. 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.
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 different types of reinsurance coverage, which depend on the type of insured perils and insurance segments.
Life insurance underwriting at Group level creates mortality risk, longevity risk, morbidity risk, lapse risk, expense risk and catastrophe risk. The above-mentioned claims, which are paid as annuities, are also exposed to these risks, but in addition to biometric risks they are also subject to the payment revision risk. Life insurance products therefore depend primarily on biometric factors and are exposed to the risk of changes in actual biometric data as well as other factors, such as the share of cancellations and the amount of costs in the premium. If the assumptions change unfavourably, the premium and/or insurance technical provisions may become too low and the insurance policy less profitable than expected at the time of its conclusion.
Complementary insurance, such as accident insurance, is less dependent on biometric data and more similar to non-life insurance, so their risks are also similar to the risks of non-life insurance products.
The Group is exposed to mortality risk in insurance products that cover the risk of death if at the time of the person insured’s death the coverage is greater than the created provisions. Whole life insurance products, credit life insurance products and life insurance policies with a savings component have the highest exposure. The sums insured in the event of death in these cases are high, while insurance technical provisions are relatively low.
Longevity risk at Group level means exposure to annuity and pension 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 estimated life expectancy of the beneficiaries. If there is a significant increase in the overall life expectancy of the population insured, the probability of death decreases, thereby increasing the liabilities of exposed policies.
Due to the guaranteed amount of annuity, the Company faces 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. This risk is not transferred to reinsurers, instead additional dedicated provisions are formed if necessary.
Products with the coverage of critical and serious illnesses and disability underwritten by the Group’s insurance companies are exposed to disability and morbidity risk. As a rule, these insurance policies do not have a savings component, so their exposure is proportional to the amount of the sum insured.
to surrender the policy, change the amount of cover or premium, decide how much of the savings to use to buy an annuity, are exposed to lapse risk (conversion into a capitalised policy or policy surrender). The realisation of this risk depends on the policy holders’ 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.
The Group is exposed to expense risk 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 can last for more than 20 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.
Non-life annuities are exposed to revision risk. 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 for life insurance in the event of death and disability 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, so the risks related thereto are assessed in the context of regular portfolio valuation.
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 SVPI policies during the saving period.
The most important type of a contractual financial option is the life product policyholder’s right to suspend the payment of premium and transform the policy into a paid-up (capitalised) policy or to surrender the policy, which is managed as part of lapse risk.
risk equa lisation is ef cient and corre c t classification o f risks. A speci c risk is a ssesse d and class ie d into an appropriate group at the time of under writing. Also co nsidered are the new nd ings, know-how and proce dures of reinsurers who assume a por tion of under wri ting r isks .
All identie d risks are managed in the c ontex t of the a c tuarial cont rol c ycle by regularly checking the deviations of the ac tual ef fec t s of risks from tho se anticipated. In the event of deviations, appropr iate ac tion is taken – by adapting the design or criteria of an ins urance pro duc t or by adjusting the criteria for the calculation of insurance technical provis ions to the ex isting situatio n.
See Section 2.3 of Risk Management for more information a bout under writing ris k s.
The Group invests wri t ten premium (i n the framework of the insurance bu siness ) and own assets o f Group companies. The investment por t folios of Group com panies i nclude a wide range of dif ferent nancial instruments. Their value depends on the situation and trends in nanci al markets. Financial i nvestmen ts are the largest asset group and therefor e an impor tant par t of the Group’s op erations. In this way , insurance and other obligations and capital requirements are cover ed while ensuring an appropriate return. In i nvesting, the Company is expos ed to market risks due to changes in the prices of equit y securities and real propert y, cha nges in interest rates ( risk -free inter est rates and credit spreads) and changes in e xcha nge rates. A n impor tant par t o f these risks are also risks arising from the excessive concen tration of asset s from direc t investment in nancia l instr ument s o r indire c t through inves tmen ts in coll ec tiv e inves tme nt un der taking s.
The primary method o f measu ring and monitoring these risks at Group level is based on the Solv ency II st andard fo rmula , which is complemented by int ernal meas ures based on the valu e-at-risk ( VaR) metho d.
Market risks are mana ged acco rding to the established me thods and process es with clearly dened p owers and responsibilities. The market risk manageme nt s ys tem e nable s qualit y analyses and repor ting on market risks, as well as developing and implementing measures aimed at preventing the reduc tion o f available own assets due to changes in n ancial market s, including t he real prop er t y market. Market risks are reduced by appropriately di versif ying the investment por t folio and regularly matchin g asse t s and liabili tie s ( the A L M pro cess ). Deriv atives are also used but to a less er ex tent.
The level of unex pec te d losses, which is still accept able in relation to the Group ’s s trategic objec tives and capi tal streng th, is dened in it s mark e t risk appetite. Base d on the risk appetite, the limit system also specie s maximum accept able expo sure to ind iv idual typ es of mark e t risk and the target investment por t folio struc ture.
The following risks are considered in the contex t o f market risks :
Mark et volatility are exposed to this risk. Assets (investments) mainly include shares and equity-oriented collective investment undertakings. With the growth of stock markets, opportunities can arise from such investments. Liabilities sensitive to this risk arise primarily from unit-linked life insurance and supplemental voluntary pension insurance. 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 higher 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.
due to changes in exchange rates. At Group level, currency risk arises from the mismatched currency position of assets and liabilities. Currency risk is managed by matching assets and liabilities and, to a lesser extent, by using derivatives.
The Group companies are 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 counterparties and the concentration of risks of these parties.
By type of partner, the Group’s credit risk arises from three sources:
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. At Group level, the concentration risk of individual counterparties is managed with a single database of all counterparties in reinsurance and banking.
See Section 2.5 of Risk Management for more information about credit risks.
Available funds or from the uncertainty of financial markets and the consequent difficulty in accessing the financial resources needed to pay for liabilities. Realisation of financial investments is thus not possible or is carried out at a price lower than the market price. The Company’s expected cash flows, i.e. inflows and outflows, are kept and managed proactively. Most cash flows of liabilities arise from liabilities 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 striving to generate surplus assets to ensure the repayment of liabilities even in a stress scenario when liquidity needs are greater. In this way, the Group is able to meet all expected and unexpected present and future cash outflows and overdue liabilities at any given moment.
Because liquidity risk cannot be eliminated by holding dedicated capital (the standard formula does not take it into account), a process for continuously providing adequate liquidity reserves was established. These are determined based on various stress scenarios adjusted to the Company’s liquidity risk, which includes adverse insurance and financial events. Based on them, the Company assesses liquidity risk and adjusts liquidity, which must always exceed the needs.
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. Scenarios and measures are reviewed annually and adjusted to exposures and the market situation. With the described system, liquidity risk is effectively assessed and managed, while optimising excess liquidity by investing in alternative sources with higher returns on the market.
and takes into account local regulatory liquidity requirements and the Group’s minimum standards for liquidity risk management. The liquidity of the Group companies is planned on an annual basis by estimating the volume and scope of business in the coming year, while in the framework of own risk and solvency assessment it is planned for at least three years. Planning includes future potential liquidity needs and effectively provides available liquidity sources. See Section 2.6 of Risk Management for more information about liquidity risk.
Crucial to identify and address them on an ongoing basis. The aim of operational risk management at Group level is to effectively remedy the consequences of realised operational loss events and mitigate and prevent operating losses in a professional, diligent and ethical manner. This can be achieved by identifying these risks in a timely manner and limiting them cost-effectively according to defined tolerances.
The Group identified nine operational risk groups used to monitor risks. These include:
Operational risk management places the greatest emphasis on key business processes or operational risk segments. Operational risks are assessed based on all available information, such as estimates of potential risks by groups of business processes, realised loss events and other relevant information by employees and key functions. 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:
In accordance with the principles of proportionality and materiality, Zavarovalnica Triglav transfers the operational risk management system to subsidiaries, which regularly report on realised operational loss events and other material operational risks.
One of the material operational risks is related to continuous operation of key business processes, which is ensured with the business continuity management system (BCMS) at Zavarovalnica Triglav. It comprises all key components relevant to the business, in particular the provision of the necessary staff, work locations and resources, which includes the operation of information technology with key applications. The Company appropriately manages information security and related business disruptions and interruptions. Business continuity plans for critical business processes and IT disaster recovery plans are regularly revised, upgraded and checked. The BCMS also defines:
Non-financial risks to the Triglav Group’s operations include material strategic risks, reputational risk, Group risk, sustainability risks and emerging risks. Non-financial risks usually originate from the external environment and are very closely linked to other risks, especially operational. They normally arise from several realized factors both inside and outside of the Group.
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 both the Company and the Group companies arising from environmental, social and governance factors, and may have a negative impact on the financial position or solvency of the Company and the Group companies.
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 risks 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.
More activities are presented in Section 2 of Risk Management and in Section 12 Sustainable development and ESG aspects at the Triglav Group of the Business Report.
Non-financial risks are risks that, due to their nature, cannot be reduced, addressed or mitigated with dedicated capital. The standard formula does not cover them.
In addition to the risks described above, the Group is also exposed to potential or emerging risks. These are risks that may or may not develop in the future but are not yet material. They are difficult to assess but can have a significant impact on the business. They cannot be predicted based on past experience as there is often no data from which to predict either the frequency or the severity of the damage caused.
Emerging risks are therefore monitored very closely and the risk management system is appropriately upgraded. As part of regular monitoring, they are identified through the risk trend.
Risks as determined by IFRS are underwriting, market, credit, liquidity and other risks. The Company’s risk classification can be translated into the IFRS risk classification as follows:
The Company monitors the situation and reports to the management on exposure and risk assessment based on regulatory requirements and internal risk classification. Due to the differences in the IFRS and Solvency II valuation methods, the values of individual balance sheet items may differ noticeably, which is also reflected in differences in 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 Company’s website (triglav.eu).
The Group’s risk management system is upgraded by regularly identifying changes in the environment, taking into account strategic guidelines and objectives. In this way, the Group achieves a level of preparedness suitable for optimal response even in the case of unexpected events, which ensures profitable, stable and future-oriented business.
operations. The following were identified as the main trends that were at the forefront in 2021 and that will be important in the future: events related to the development and consequences of the COVID-19 pandemic, upgrading of sustainable business, emphasising the monitoring of upcoming regulatory climate-related changes and further development of business digitalisation.
The Triglav Group regularly monitors the situation and prudently manages risks. In doing so, it pursues the widest possible diversification of its exposure to risks and manages their concentration to as far as segments, especially in areas where greater uncertainty is identified. The existing risk management system enables the Group to monitor the situation in the environment on an ongoing basis and to respond rapidly by appropriately addressing its negative impacts on capital adequacy and profitability.
In 2021, the focus continued to be on the moderate underwriting of market risks and increasing underwriting risks (the latter due to business growth). The slightly higher risk-free interest rate reduced the risk of providing embedded financial guarantees for life insurance products with a savings component.
Market risks in the Group’s own insurance portfolios are managed with established investment policies by primarily following the interests of policyholders, persons insured and other beneficiaries from insurance contracts and focusing on simultaneous investment security and achieving maximum profitability while strictly taking into account the assumed risks. The amount, maturity and currency of assets intended to cover insurance liabilities are harmonised with liabilities as much as possible, thus further limiting market risks. By managing the remaining assets, the goal of achieving a reasonable rate of return is pursued, taking into account all the risks assumed and maintaining a high overall credit rating of the investment portfolio. See Section 7.9 of the Business Report 2.4 for more information about investments and Section 2.4 of Risk Management for more information about market risks.
In the current situation, careful attention is paid to the optimal profitability of the insurance business and the appropriate rate of return on investment, which is also achieved by investing in alternative investments and listed index funds. This additionally ensures a higher diversification of investments. Alternative investments with comparably lower liquidity show slightly higher expected returns. The volume of such investments is subject to achieving adequate portfolio liquidity, taking into account stress scenarios for deteriorating liquidity in financial markets and increasing liquidity needs.
During the COVID-19 pandemic, the Company monitored the effects of the energy shortage and supply chain disruptions on business operations. As part of regular risk management in 2021, the Company did not detect any excess concentrations in the affected segments of its insurance portfolio that could have a significant impact on its financial position. The lack of semiconductors led to a noticeable decrease in the number of new registered vehicles and a consequent increase in the share of used vehicles in Slovenia, which account for the highest number of motor vehicle insurance policies at Group level. The average age of passenger vehicles increased.
The year 2021 was largely marked by the continued COVID-19 pandemic. With the introduction of vaccination and digital COVID certificates, countries found it easier to regulate the pandemic than in the preceding year and took fewer restrictive measures that would weaken economic activity. The continued strong and accommodative monetary policy resulted in considerable excess liquidity, sharp growth in stock markets and significantly stronger economic activity. Along with stable economic growth, the introduction of vaccination and an effective response to the pandemic, investors were faced with uncertain signs of a tight monetary policy, as excess liquidity and consequent excess demand slowly but steadily raised prices, initially only energy prices.
Vehicles in the market is increasing, which the Company took into consideration when redesigning its products, while upgrading and expanding the range of products suitable for older vehicles (mini assistance, technical assistance, comprehensive collision insurance (kasko karambol)). Its portfolio of motor vehicle insurance covers is very well spread out across car brands and sales channels, thus adequately managing uncertainties in relation to individual manufacturers and dealers.
To manage default risks, the Group established an effective system for monitoring the entire portfolio of counterparties, which enables it to promptly identify these risks and take action. The credit quality of the portfolio is regularly monitored, while the concentration in the Group is managed by taking into account and adjusting exposure to individual partner segments.
Higher inflation also has an effect on the Company’s operations. With the increase in operating expenses and expenses in the insurance portfolio, especially in non-life insurance, its unexpected faster growth could result in higher claims. Such risks are managed by regularly adjusting the pricing policy. Higher inflation also affects the investment portfolio, primarily through fixed-income investments, the value of which is historically negatively correlated to rising inflation. Inflation risk is managed within the framework of interest rate risk management.
In addition, higher inflation has the effect of reducing the real disposable income of households, which would therefore spend less money on taking out new optional insurance policies or renewing existing ones. If current macroeconomic developments stabilize in stagnation (low economic growth with high inflation), credit and liquidity risks could increase.
The Group insurance companies carefully monitor the cost aspect and investment returns in life and pension insurance policies, which are subject to premium costs determined at the time of conclusion throughout their whole term and also have contractually-defined returns. Taking into consideration expected inflation, the Company is changing its focus from pension insurance with a guaranteed interest rate to funds with a mixed and equity investment policy. These offer policyholders the possibility of higher returns and more easily mitigate inflation, while the Company itself is less exposed as they do not include a guaranteed interest rate, which is difficult to achieve in the current market situation.
Specialised company for pension funds.
In 2021, which was characterised by the central banks’ expansionary policy, the Company did not record any deterioration in liquidity. The adequacy of liquidity was regularly checked and confirmed by stress tests, as the liquidity risk management system includes both stress scenarios and a liquidity plan in the event that it would not achieve adequate liquidity without them. The Company has a system in place that provides adequate liquidity reserves to meet liquidity needs even in an extraordinary situation.
The Triglav Group actively participated in the EIOPA stress test, which confirmed its capital strength and liquidity in the case of severe consequences of the pandemic.
Sustainability aspects are incorporated into the Triglav Group’s operations, which are based on responsible long-term development. The Group committed itself, through its activities, to reduce uncertainty in the environment, provide its clients with financial and other security and create long-term sustainable value for its shareholders and other stakeholders. The coverage of risks that the compulsory social security scheme does not cover or covers inadequately is ensured by complementary and supplemental insurance products. The Company is expanding its life, pension and health insurance product range, thereby increasing the security of clients at all stages of life. During the pandemic, claims were settled through appropriate life underwriting risk management and thus contributed to the financial security of the affected policyholders, especially in the event of a difficult recovery from COVID-19. The Company is exposed to longevity risk in products with lifetime annuity or pension payouts. Especially long-term risk requires special attention: it is managed by developing dynamic models of the policyholders’ life expectancy and setting appropriate premium rates and provisions.
The Group is aware that healthcare will continue to gain social significance. It is proactively increasing its range of healthcare services in order to provide its policyholders – via health centres – with timely and, at the same level of quality, more affordable healthcare services than its competitors on the market. The Group aims to transform from a traditional health insurance provider into a health partner and provide clients with comprehensive lifelong services. By offering additional healthcare services, it takes into consideration the risk of a potential health reform and the abolition of supplemental health insurance.
At a time when the COVID-19 disease is still spreading, it is even more important to continue operations that aim for balanced long-term development and include care for the environment, society and all stakeholder groups. In 2021, we witnessed two waves of increasing cases of infections in the Adria region, as well as measures and instructions of governments and expert groups to limit them. The same can be expected in the future.
The COVID-19 epidemic further exacerbated the health crisis. There are more and more warnings about its future consequences for people’s health due to the redistribution of healthcare services from regular treatment to the treatment of COVID-19 patients. Hospitals dedicated to COVID-19 patients suspended other programmes due to labour shortages, and many diseases are therefore not detected as early as they would otherwise be. People can be expected to be of poorer health, which means negative consequences in the near future.
The effects of the pandemic were also felt at work. Various forms of hybrid work were implemented, including working from home. This caused problems for some employees due to inadequate working conditions (working hours, premises, etc.).
The pandemic, which has lasted for almost two years, also affected people’s mental health, affecting personal relationships due to people worrying about the threat of the virus and having less social contact. These health problems are expected to deteriorate as the pandemic continues.
One of the key challenges for Slovenia and the region is the ageing population, which will have an even greater impact on the healthcare system and the labour market.
On the one hand, this has an impact on labour shortage, slow development and economic growth, and on the other hand, with increasing longevity, public spending on pensions and healthcare is increasing. All this increases the risks of public finance sustainability due to the growing budget deficit and higher public debt.
The pandemic also had a strong impact on employment and how the Group interacts with its employees, who play a key role in achieving the Group’s ambitious business objectives. Changes in this area were driven by government measures and the Group’s strategic initiatives to create a stimulating, development-oriented environment with engaged, healthy and satisfied employees. The Group provides for their development and carefully chooses new employees, who are subject to thorough onboarding.
In 2021, close attention was paid to government measures, which were consistently implemented in order to provide employees with the safest possible working environment. The Company regularly reviewed security measures to curb the spread of COVID-19. With the adopted and promptly revised work instructions, the Company set out in detail the obligation and method of verifying the compliance of employees, clients and other partners with the recovered/vaccinated/tested rule. Good practices were transferred from the parent company to other Group companies, which adapted them to local legislation. Hybrid work was introduced, which includes working from home, and a new employment contract was entered into with employees who were able to work from home because of the nature of their work. Based on a written order, working from home was enabled to those who were unable to work in the Company’s premises due to measures to curb the spread of COVID-19 and to health risk groups. The safety statement was updated with a risk assessment and measures related to the increased risk of infection with agents causing infectious diseases. Testing and other measures were carried out to ensure the health and safety of employees at work (protective masks, disinfectants, etc.).
As part of the Triglav.smo programme (striving for healthy, satisfied, engaged employees), the decision was made to improve employees’ knowledge about mental health. Due to the increase in mental distress and problems in society, two sets of online meetings entitled A healthy mind in a healthy body were held. The staff at the Psihološki u trip (Psychological Pulse) group continued to provide psychosocial support and professional guidance for better mental health. An increase in the number of employees needing such support was observed. In order to improve the life-work balance, measures related to the Family-Friendly Enterprise Certificate continued to be implemented.
responsible employer, rmly believing that this will help to ret ain the top employe es in the Group. Assessments of the or ganisational cl imate in the Group show bet ter results ever y year. This proves that the Group is ef f ec tivel y adapting to the changes resulting from the epidemic; communication is open and ef fe c tive, and the Company atmosphere remains p ositive despite the changed working metho ds. The measures taken and achievement s in 20 21 conrm that an appropriate degree of e xibility w as built into the Grou p’s system for managing s uch risks, which will be neede d in the future to manage uncer t ainty in so ciet y.
See Section 12.4.2 o f the Business Repor t for more information abou t ac tivi ties for the care for employe es.
178
Solutions resulting from strategic development processes in recent years, particularly the introduction of an omni-channel sales approach and remote and paperless operations. See Section 11.2 of the Business Report for more information on development activities. Thanks to solutions such as remote signing, video identification and remote inspection of the object insured, business continuity was ensured also in the extraordinary circumstances, proving that the Group is well-prepared for digital business.
The Company ensures appropriate information security and complies with regulatory requirements by constantly upgrading the information security management system and security controls, regularly testing information security and verifying recovery procedures and information systems. To continuously monitor security events, a security and control centre was established, which operates 24/7. New information tools are developed at the Company and transferred to other Group members in accordance with established procedures. With these tools, new security risks are controlled promptly, while actively managing the level of the Group’s information security. Information risks and within them cyber risks are monitored with a new tool for operational risk management. The Company is aware that people are the most vulnerable part of information security, which is why it regularly raises employees’ awareness and educates them about information security risks and their management. The level of awareness is regularly checked, for example by social engineering tests using electronic communication (a phishing test). Based on these findings, a plan of actions and measures is designed to improve information security and employee awareness.
Before and during the implementation of new technological solutions, related risks are assessed and a set of measures for their management is designed; new solutions are then verified on an ongoing basis, used to measure client satisfaction and improved based on the feedback received. IT solution providers are selected that offer legally compliant solutions for information security and personal data protection with guaranteed compatibility of services. This approach is also used in the project of developing an integrated sales module.
To better deal with the challenges of remote business and increasing cyber threats, the Company provides tailored cyber insurance products and related assistance services to its clients.
The already high level of digitalisation of everyday life is increasing even faster during COVID-19 times. Advanced analytics, the use of cloud services, the Internet of Things, cognitive computing, mobile network development, process robotisation, machine learning, artificial intelligence, API, the sharing economy and remote business are all on the rise. All this is reflected in clients’ expectations and needs, the cost efficiency of companies, the need for faster adaptation, the development or acquisition of additional information systems with appropriate functionalities that meet the requirements of regulations and information security, and new ways of doing business. Insurers are expected to constantly follow and adapt their operations to changes in society as well as implement technological changes and innovative business models developed by insurtech and fintech companies. The insurers’ digital transformation process has been noticeably accelerating recently. Searching for new digital services and implementing them into operations and providing an outstanding user experience can be a significant challenge for insurance service providers (due to rapid and continuous development), but it is also becoming one of the key differentiating factors. Clients have high expectations related to the quality of services and user experience in an omni-channel environment that they gain with service providers in other industries or on global digital platforms. The COVID-19 pandemic caused a change in the way insurers engage with clients, switching mostly from physical contact to communicating predominantly remotely and via digital channels (taking out insurance, settling claims, etc.). As is extensively reported in the previous section on employees, work processes also moved from business premises to employees’ home, with communication mainly taking place via an internet connection and with remote access to Company data. All of the above gave additional impetus to business digitalisation and produced many challenges, such as client identification, remote signing, remote inspection of the object insured, secure document exchange and managing changes in client data in the Company’s databases.
Technological development is associated with the exponential growth of cyber threats, such as attacks to steal information, blackmail for ransom or stop business processes. The vulnerability of insurers to cyber attacks and their number increased worldwide. Managing and limiting the possible financial and operational-process effects of these threats is crucial for successful operations, while maintaining clients’ confidence in the secure processing of their often sensitive data. Regulators are working to increase security by introducing security measures and security incident reporting procedures (such as the GDPR). The current focus is on EIOPA guidelines on outsourcing to cloud service providers and guidelines on information and communication technology security management. The Regulation of the European Parliament and of the Council on digital operational resilience for the financial sector is expected to be adopted in 2022.
Increased risks in the environment are also a business opportunity for insurers. Cyber insurance products make a valuable contribution to secure business operations and play a key role in the safer transition to a digital economy.
The Group comprehensively monitors the environmental efficiency of its operations and incorporates new regulatory requirements that facilitate the economy’s transition to sustainable development into its governance systems. The Group’s strategic ambitions relating to sustainable development (ESG) define key guidelines for the implementation of business processes in the Group members, engagement with clients and other stakeholders, and its activities and integration in the community. The Group strives for sustainable solutions that focus on the efficient use of energy, water and other natural resources as well as reduce pollution.
In engagement with clients and other external stakeholders, the Group aims to meet the set environmental goals and national and global environmental commitments, thereby monitoring the direct and indirect impacts of operations on the environment and related environmental risks. The Group takes a proactive approach to tackling challenges such as climate change. In parallel with developing various types of insurance coverage, the Group aims to make individuals better understand climate risks, the growing dangers of natural disasters and other climate change impacts on society and to be more aware of them.
The Group will support the development of sciences so as to understand the causes of environmental change and their indicators as well as the development of new technologies to reduce the negative impacts of economic and social activities on the environment.
Climate change emergencies will be more frequent and severe in the long run. Therefore, special attention is paid to the adequacy of premium amounts to cover weather damage and an expert assessment of the risk of increasing insurance liabilities due to climate change is reasonably included in the information on historical data (the number and intensity of past loss events). Based on the stress scenario for increased severity and/or frequency of catastrophes in one year, which was performed for the Company’s existing non-life insurance portfolio, there was a noticeable increase in total net claims, but their value does not exceed the Company’s internal limit for underwriting catastrophe risks due to its adequate reinsurance protection.
Climate change is a material risk in the long run, which also depends on humankind’s future responses and the speed of nearing carbon-free business. At the same time, it is also a sustainability risk, an area which is an increasingly important part of business.
The coordination and effectiveness of climate change mitigation measures will increase, as will the required business adjustments, which will put the risk of business transition at the forefront. According to the opposite scenario, measures taken will be inadequate, resulting in higher physical risks with an increased frequency and severity of weather disasters and other consequences.
The effects of climate change are already reflected at a global level in higher average atmospheric temperatures, rising sea levels, more frequent and longer heat waves, and in recent years more frequent extreme weather events also seen in the Adria region. In the future, the Group’s markets will be characterised by more frequent floods, which also applies to the winter months (property insurance), primarily due to higher river levels, prolonged droughts in the summer months (agricultural insurance) and severe hail. The frequency and severity of weather disasters will increase the demand for insurance coverage; therefore, insurance companies will need more reinsurance coverage, which will put pressure on reinsurance prices. Increasing the frequency and severity of weather disasters will increase the risk of the non-life insurance portfolio, while increasing the capital needs of insurance companies, which may further reduce the supply of such insurance coverage.
As the atmospheric temperature increases, mortality and the likelihood of disease or new epidemics also increase, which may affect supply and demand of life and health insurance. The COVID-19 pandemic showed that large and long-lasting disease outbreaks can worsen socio-political stability and the macroeconomic and geopolitical situation, which usually results in reduced economic activity and shocks in financial markets. These events will also affect the new division of regions suitable for habitation, which may lead to more extensive migration and volatility in the housing market.
The insurance sector could significantly facilitate the social transition to a carbon-neutral economy and, by providing adequate coverage, contribute to a higher level of stability and security in terms of physical risks, thereby improving the economy.
The legislative package relating to sustainability will, among others, regulate the classification of economic activities by environmental orientation and upgrade the reporting requirements for the environmental aspects of business operations. Its implementation is expected to transform society into a more environmentally conscious society, although this will also lead to additional costs. Many challenges remain open in the field of data quality and sources and methodologies for their diverse use, mainly due to the general vagueness of approaches and data availability and therefore the lack of market practice in the (re)insurance sector, which would otherwise greatly facilitate legislative changes. The new EU regulation to promote the transition to a green economy and the changing values of consumers are increasing the attractiveness of the market of insurance products related to the renewable energy sector. The demand for investment-insurance products and insurance solutions, which accompany the buyer in adopting a sustainable lifestyle, is therefore growing.
Recent analyses for Slovenia, as part of the short-term effects of climate change, predict an increased frequency and severity of weather disasters, but do not assess them as extremely severe. Slovenia’s action will be focused predominantly on increasing sustainable methods of energy production, reducing emissions from transport and digitalising public administration and industry.
The Company strives to raise public awareness in various ways about the importance of insurance against damage due to climate change, as it is aware that this risk will affect the quality of life of us all. Weather disasters causing major damage are expected in the future as well, thus people are advised to regularly check the adequacy of their insurance coverage. Safe and self-protective behaviour is promoted with preventive warning systems, and after events with products that provide various types of assistance services. The Company designed the Triglav Vreme (Triglav Weather) application and the Toča (Hail) warning system, within which it provides catastrophe relief. See Section 12 of the Business Report for more information.
The Company not only provides a broad range of insurance products covering the risks of adverse weather events, but also designs new business models in the form of new insurance coverage and to promote insurance in general. The goal is to attract the attention of as many retail and corporate clients as possible and encourage them to buy insurance and, with geographical diversification, to provide wider and easier accessibility of insurance products. The Company reduced the impact of assumed risks on its operations by having an appropriate reinsurance coverage, which is constantly checked and adjusted.
Upgrading the sustainability risk management system, which will be at the forefront next year, will be based on the risks identified in the own risk and solvency assessment process. These risks will relate to the improvement of the quality of data for environmental risk assessment and, on this basis, to the upgraded system of monitoring and reporting on sustainability risks in accordance with the law.
The quantitative presentation of risk exposure presented below is primarily based on accounting data. Exposures on a mark-to-market basis are presented in greater detail in the Solvency and Financial Condition Report available at www.triglav.eu.
The presentation of the Triglav Group’s risk...
prole and risk assessments by individual risk segment are based on market values for solvency purposes. The Company uses a regulatory method that was assessed as appropriate for risk measurement in the context of the own risk and solvency assessment process.
In the case of unit-linked insurance, the risk is not borne by the Company. 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 Company and consequently the Group.
Effective capital management enables the Group to improve its operations, adopt appropriate business decisions and maintain its competitive advantages.
Capital adequacy of the Triglav Group and Zavarovalnica Triglav
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 2021 are described in the Group’s Solvency and Financial Condition Report for 2021, D and E sections, which is published on www.triglav.eu.
The Triglav Group was well capitalised also as at 31 December 2021. Achieved capital adequacy was 219% as at 31 December 2021, remaining within the target range, i.e. between 200% and 250%. Thus, the Group meets its target risk appetite, which is in line with the capital management strategic objectives and the dividend policy criteria presented in Section 1.3 of Risk management.
| Triglav Group | Zavarovalnica Triglav | |
|---|---|---|
| 31 Dec. 2021 | 31 Dec. 2020 | |
| Available own funds (EUR million) | 1,007 | 968 |
| SCR (EUR million) | 459 | 404 |
| Capital adequacy (%) | 219 | 240 |
| Capital adequacy was affected by the increase in available funds, which are EUR 39.6 million higher than in 2020 due to profitable operations; this amount already takes into account the expected dividend amount for 2021. Zavarovalnica Triglav paid dividends in the amount of EUR 38.6 million for 2020. The Group’s capital requirement increased in the comparative period due to higher market and underwriting risks, which is largely due to increases at the Company. |
| Intangible assets and deferred acquisition costs* | 932.99 |
|---|---|
| Net deferred taxes | 107.2 |
| Investments in subsidiaries and associates | 28.6 |
| Property | 66.0 |
| Financial investments | 25.6 |
| Net unit-linked insurance assets | 405.4 |
| Reinsurers’ share of technical provisions | 104.6 |
| Technical provisions** | 79.2 |
| Subordinated liabilities | 663.9 |
| Other assets and liabilities | 2.2 |
| Excess of assets over liabilities | 129.3 |
| Other deductibles, including foreseeable dividends*** | 84.3 |
| Deductibles for non-available own fund items | 1.5 |
| Subordinated liabilities | 51.7 |
| Group’s available own funds | 1,007.11 |
** Consolidation for solvency purposes differs for Triglav Skladi and Triglav, pokojninska družba.
*** Other deductibles include deductions for participations in other financial undertakings, including non-regulated undertakings carrying out financial activities, and foreseeable dividends.
182
| 219% | 225% | 212% | 220% | 217% | 206% | 230% | 223% | 214% | 224% | 213% | 206% |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 200% | 210% | 220% | 230% | 240% | 250% |
Deteriorated situation in the Slovenian financial market*
| Capital adequacy | Capital adequacy remains in the target range in both the Company and the Group. In 2021, the Group participated in the EIOPA stress test for insurance groups, which confirmed its capital strength. |
|---|---|
| Underwriting risks | The Group maintains premium growth and achieves the target values of indicators in strategic markets. Despite more frequent and severe disasters, it achieved the profitability of the insurance portfolio within the planned values. Along with inflation, risk-free interest rates also increased slightly, which partly reduced the risk of providing embedded financial guarantees for life and pension insurance products. |
| Market risks | In 2021, favourable conditions prevailed in the financial markets, as central banks made sure that market volatility was low. There were more problems in supply chains due to excess demand, insufficient supply and the crisis in the energy market. The latter, with excess market liquidity, led to high inflationary pressures at the end of 2021. In the future, uncertainty remains related to the level and length of the period of high inflationary pressures, which may also affect changes in interest rates. Nevertheless, the Group maintains risks at defined levels and pays special attention to the development of optimal investment policies and the matching of assets and liabilities. |
| Credit risks |
The Company’s strong liquidity position is maintained by regularly monitoring the liquidity position. The EIOPA stress test, performed according to a uniform methodology at Group level, confirmed the adequate liquidity of Group insurance companies.
The Group takes a proactive approach to operational risk management. It pays more and more attention to regular maintenance and additional upgrades of the information security management system. The level of risk is increased by its strategic focus on digitalisation and the growing threat of cybersecurity incidents.
An overall assessment of the main risk categories was made on the basis of discussed quarterly risk reports. The risk trend shows a potential assessment of future risks relative to the latest projections.
ii) Risk trend: downward stable upward.
Risks are assessed based on the standard formula defined by the applicable legislation and internal methodologies. The latter are mostly based on the value-at-risk method, which distributes market losses or gains over a one-year horizon with a 99.5% confidence interval. With regard to solvency capital requirement (SCR), the diversification specified in the standard formula as prescribed by law is taken into account.
The level of underwritten risks was within the range defined in the risk appetite. The Group is most exposed to market and underwriting risks, followed by credit and operational risks. Within the Group, the Company assumes the bulk of the risks.
| Underwriting risks: | 47% |
|---|---|
| Market risks: | 34% |
| Credit risks: | 6% |
| Operational risks: | 6% |
| Risks of other non-financial companies: | 3% |
| Risks of companies from other financial sectors: | 4% |
Underwriting risks are directly related to underwriting insurance policies and the amount of their value. 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 technical provisions. This type of risk is significantly related to the premium amount. The structure of consolidated gross written insurance, coinsurance and reinsurance premiums of the Group by non-life and life insurance segment is presented in detail in Section 7.5 Gross written insurance, coinsurance and reinsurance premiums of the Business Report.
Underwriting risks are presented separately for non-life and life insurance.
When underwriting non-life insurance policies, the Group’s insurance and reinsurance subsidiaries underwrite premium risk, reserve risk, lapse risk and catastrophe risk. Under the standard formula, these risks depend on the exposure to individual risks and their volatility. The Group is most exposed to premium and reserve risks, followed by catastrophe and lapse risks. At Group level, Zavarovalnica Triglav underwrites the bulk of the non-life underwriting risks, Triglav, Zdravstvena zavarovalnica underwrites most health underwriting risks, while Pozavarovalnica Triglav Re underwrites the majority of inward reinsurance underwriting risks. Other Group insurance companies contribute slightly over 20% to non-life underwriting risks.
| Premium and reserve risk: | 63% |
|---|---|
| Catastrophe risk: | 20% |
| Lapse risk: | 17% |
The profile of non-life underwriting risks did not change significantly in 2021. The increase in their overall assessment was influenced by portfolio growth, which increased the exposure to all three main components of these risks.
| 2021 | 2020 | |
|---|---|---|
| Exposure to premium risk | 800,000,000 | 700,000,000 |
| 600,000,000 | ||
| 500,000,000 | ||
| 400,000,000 | ||
| 300,000,000 | ||
| 200,000,000 | ||
| 100,000,000 | ||
| 0 |
Exposure to premium risk increased the most in 2021 in the real property insurance. Most growth in this line of business stems from underwriting international reinsurance policies, which increases the geographical diversification at Group level. See Section 7.5 of the Business Report for more details about the movement of gross written insurance, coinsurance and reinsurance premiums.
Premium risk is regularly monitored both at the Group level and at the level of insurance segments. The adequacy of written premium in relation to actual claims and costs arising from underwritten insurance contracts is also measured with combined ratios. Combined ratios for the last three years are presented in Section 8.1 for the Group and Section 8.2 for the Company in the Business Report.
The sensitivity analysis of the Group’s net combined ratio showed that by increasing or reducing the ratio by 1 percentage point, the Group’s profit before tax would decrease or increase by EUR 6.8 million. Due to the increase or decrease of the Company’s net combined ratio by 1 percentage point, its profit before tax would change by EUR 4.1 million. Taking into account one (additional) maximum net loss in the amount of EUR 7.5 million, the Company’s combined ratio would deteriorate by 1.82 percentage points in 2021.
Based on actuarial estimates of the movement of the amount of benefits, expenses, combined ratios and the market situation, premium rates for non-life insurance are high enough, therefore premium risk management is appropriate.
In addition to exposures (net claims provisions), reserve risk assessment is affected by volatility, which varies by line of business. In 2021, the real property insurance other portfolio maintained the ratio between the exposure of insurance segments with low.
For more information, see Section 3.18 and Section 3.16 of the Accounting Report.
and high volatility. Insurance segments with lower volatility at Group level include: motor vehicle liability insurance, other motor vehicle insurance and legal expenses insurance. The remaining insurance segments are characterised by higher volatility.
| Probable maximum loss (PML) for a 200-year return period by peril* | 2021 | 2020 |
|---|---|---|
| exposure with low volatility | 47% | 50% |
| exposure with high volatility | 53% | 50% |
The Group’s insurance companies regularly check or analyse the adequacy of insurance technical provisions. As harmonised actuarial methods are consistently used in the formation of insurance technical provisions, the adequacy of provisions is assessed based on the difference between the originally estimated liabilities and the subsequently estimated liabilities as at a specific cut-off date. Analyses show that the difference in historical years is such that it confirms the adequacy of provisions as at 31 December 2021.
Lap se risk increased during the year due to the increase in the non-life insurance portfolio.
In 2021, the Company recorded four events, which it defined as catastrophe events, of which one was frost, two were storm events and one was a flood event. 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. At the Company, the perils where it has the largest exposures or pose a high risk are regularly modelled. These perils are flood, hail, storm and earthquake.
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 the most probable maximum loss (PML) for a 200-year return period over a one-year period by peril.
| Modelled peril (EUR million) | 31 Dec. 2021 |
|---|---|
| Hail | 75.5 |
| Storm | 132.7 |
| Flood | 48.8 |
| Modelled perils | Non-modelled perils | |||
|---|---|---|---|---|
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
| Gross financial impact (EUR million) | 12.8 | 20.8 | 3.4 | 0 |
| Net financial impact (EUR million) | 11.2 | 11.8 | 3.3 | 0 |
The Company modelled storm and hail among realised catastrophe events, but it does not model frost. See Section 7.2 Environmental impact on the Triglav Group’s operations in the Business Report for more information about realised catastrophe events.
The re 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.
| 0% | 20% | 40% | 60% | 80% | 100% |
|---|---|---|---|---|---|
With regard to regulating the reinsurance coverage in the Triglav Group, Pozavarovalnica Triglav Re plays an important role as it assumes the underwriting risks based on reinsurance agreements with individual Group companies. Pozavarovalnica Triglav Re concludes outward reinsurance contracts for a portion of the risks it reinsures in order to effectively manage its exposure and protect its own assets, while indirectly protecting the assets of the Group’s insurance companies.
The Group’s largest retention amounts to EUR 5 million per peril, with the exception of nuclear perils, EUR 10 million per catastrophe and EUR 5 million per other correlated perils occurring after the event. The Group’s largest potential exposure in the amount of EUR 14 million could arise from nuclear perils, which the Group has assumed from the Slovenian nuclear pool. Nuclear perils are characterised by an extremely low frequency, as no such claim has been reported in 28 years, and by a low or null correlation with other contingent liabilities.
| Assumed capacity in EUR | 2021 | 2020 | |
|---|---|---|---|
| Zavarovalnica Triglav d.d. | 10,000,000 | Zavarovalnica Triglav d.d. | 10,000,000 |
| Pozavarovalnica Triglav Re d.d. | 3,000,000 | Pozavarovalnica Triglav Re d.d. | 3,000,000 |
| Triglav Osiguranje d.d., Zagreb | 1,000,000 | Triglav Osiguranje d.d., Zagreb | 1,000,000 |
| Total after the event | 14,000,000 | Total after the event | 14,000,000 |
of loss reinsurance with four layers. It was used twice in 2021. The protection against increased occurrence of catastrophes is also arranged for the Group. The reinsurance programme has so far proved to be appropriate.
The earthquake event in Ljubljana also poses a concentration risk for the Group. It is covered with quota share reinsurance, while retention is additionally protected with excess-of-loss reinsurance for catastrophe events. The impact of the 200-year earthquake in Ljubljana on the capital adequacy of the Company and the Group is verified each year with a stress scenario in the context of the own risk and solvency assessment process. Having an adequate reinsurance coverage, the Company and the Group would successfully survive a severe earthquake. According to stress scenario calculations104, the estimated financial impact of a major earthquake in Ljubljana would amount to EUR 39.3 million for the Company and EUR 40 million for the Group. This shows a strong resilience of both the Company and the Group, which would retain their capital adequacy even if this event were realized.
The life underwriting risk profile did not change significantly in 2021, nor was it significantly affected by portfolio growth.
Gross written insurance, coinsurance and reinsurance premiums in 2021 by (re)insurance subsidiary of the Group is presented in Section 7.5 of the Business Report.
Insurance technical provisions for life insurance are determined according to prudent assumptions, and their adequacy is regularly checked. The adequacy of provisions is regularly tested using the liability adequacy test (LAT) and calculating the “realistic provisions” set based on the present value of the best estimate of expected contractual and other cash flows. The test is performed at least once a year based on the balance on the last day of the business year (see Section 3.17 of the Accounting Report for more information). The test results for 2021 showed that an adequate level of insurance technical provisions for life insurance was created for the Group and individual insurance companies. Additional other insurance technical provisions were created for the identified shortfalls in the guarantee fund backing supplemental voluntary pension insurance saving and the guarantee fund backing supplemental voluntary pension insurance payouts.
The Group is most exposed to lapse and life expense risks. Within the Group, Zavarovalnica Triglav underwrites the bulk of life underwriting risks.
| Lapse risk | 35% |
|---|---|
| Life expense risk | 30% |
| Longevity risk | 17% |
| Mortality risk | 10% |
| Life catastrophe risk | 6% |
| Revision risk | 2% |
| Disability-morbidity risk | 0% |
Risk assessment* of life insurance for the Triglav Group as at 31 December 2021104
In addition to high insurance claims, the earthquake scenario in Ljubljana takes into account additional operating expenses due to business interruption, an increase in claim handling expenses and a reduction in reinsurers’ share in claims. The scenario does not take into account the potential effects of the earthquake in Ljubljana on the financial markets in Slovenia.
Business Report
Risk Management
Risk exposure and management
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 minor concentration risk in the portfolio is reduced by transferring a portion of the risks to reinsurers based on the reinsurance programme. The sum insured in the event of death is less than EUR 60,000 for 83.1% of the whole life insurance portfolio and less than EUR 35,000 for 99.6% for the other life insurance portfolio. For complementary accidental death insurance, the sum insured is lower than EUR 50,000 and accounts for 99.1% of the respective portfolio, while for complementary accidental disability insurance the sum insured is less than EUR 100,000 for 99.4% of the respective portfolio. The aforementioned sums insured represent retentions stipulated by a contract in line with the reinsurance contract for most insurance policies.
With respect to market risks in the context of financial investments (see Section 7.9 of the Business Report for more details), the Group is most exposed to debt securities, followed by equity securities and real property. The highest market risk for the Group is spread risk, followed by equity risk, property risk, currency risk, and interest rate risk. Market concentration risk is assessed as the lowest. See Section 7.9 of the Business Report for concentration by sector and geographical area.
Compared to the preceding year, equity risk assessment rose in particular. It is higher mainly due to higher exposure of this segment and the growth of market share prices.
| Spread risk | 31% |
|---|---|
| Equity risk | 27% |
| Property risk | 18% |
| Currency risk | 16% |
| Market risk concentrations | 5% |
| Interest rate risk | 3% |
Market risk assessment* by subtype for the Triglav Group as at 31 December 2021
Spread risk is predominantly determined by debt securities, which account for around 69% of the Group’s total investments. Their value also depends on the level of credit spreads, which reflect the credit quality of debt instruments. The level of credit spreads did not change significantly during 2021. Central banks’ policies helped to maintain stability by keeping credit spreads at low levels through their bond-buying programmes, allowing economies to recover quickly and effectively after a downturn due to the shutdown in production and supply. The Company and the Group manage this risk proactively and in accordance with investment policies.
The bulk (approximately 65%) of investments that are exposed to spread risk are related to exposure to countries, followed by exposure to the financial sector, which represents 18% of investments in debt securities.
Exposure to credit spread risk arises from debt securities. It is limited by the maximum allowed share in the capital, to which the investment policy is also adapted. In its investment portfolio, the Group is exposed to investments with outstanding credit quality. Over 59% of investments in debt securities have at least the “A” credit rating. The bulk (over 90%) of the portfolio is accounted for by debt securities of issuers having a credit rating of at least “BBB”. The credit quality of the debt securities portfolio did not change significantly in 2021. Its level was maintained despite the reorientation of investments to other investment classes, which reduced their value, and despite the higher share of investments with a “BBB” credit quality rating. The average credit quality with an “A” credit rating was maintained in 2021.
| Triglav Group | Zavarovalnica Triglav | |||||
|---|---|---|---|---|---|---|
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |||
| Equities in the EU | 276,478,222 | 182,841,448 | 184,660,063 | 112,358,977 | ||
| Equities in the USA | 31,728,927 | 11,594,039 | 18,463,891 | 0 | ||
| Equities in Asia** | 0 | 0 | 0 | 0 | ||
| Equities in emerging markets | 6,988,438 | 6,722,771 | 885,254 | 703,485 | ||
| Global equities* ** | 15,765,073 | 19,209,734 | 0 | 524,109 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Total financial investments | 330,960,660 | 220,367,992 | 204,009,208 | 113,586,570 |
| Unit-linked life insurance contract investments | 594,267,073 | 443,699,251 | 529,598,379 | 396,272,477 |
| TOTAL | 925,227,733 | 664,067,243 | 733,607,587 | 509,859,047 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Equities in the EU | 27,647,822 | -27,647,822 | 18,284,145 | -18,284,145 |
| Equities in the USA | 3,172,893 | -3,172,893 | 1,159,404 | -1,159,404 |
| Equities in Asia** | 0 | 0 | 0 | 0 |
| Equities in emerging markets | 698,844 | -698,844 | 672,277 | -672,277 |
| Global equities* ** | 1,576,507 | -1,576,507 | 1,920,973 | -1,920,973 |
| Total financial investments | 33,096,066 | -33,096,066 | 22,036,799 | -22,036,799 |
| Impact on fair value reserves | 20,490,695 | -20,394,885 | 14,868,401 | -14,684,012 |
| Impact on profit or loss | 12,605,371 | -12,701,181 | 7,168,398 | -7,352,787 |
| Impact on capital | 33,096,066 | -33,096,066 | 22,036,799 | -22,036,799 |
** Equity investments in advanced Asia (Japan, Hong Kong).
*** Globally dispersed equity investments.
The effects shown do not include the tax aspect and the impact of the reduction in assets on liabilities (for life insurance).
The sensitivity analysis of equity investments, whose risks are borne by the Company and the Group, in relation to the change in prices of equity investments and an analysis of this impact on the Group’s comprehensive income or profit or loss showed that a 10% increase in market prices of equities in the portfolio would have a positive impact on the Group’s fair value reserves in the amount of EUR 20.5 million, increasing its profit by EUR 12.6 million. If the trend were opposite and market prices of equity investments dropped by 10%, the Group’s fair value reserves would decrease by EUR 20.4 million and its profit by EUR 12.7 million. The estimated impact on the profit or loss is shown in the table. This only illustrates the estimated changes at Group level and does not include unit-linked life insurance contract investments.
Equity investments that are managed under financial investments and exclude investments in subsidiaries and associates and unit-linked life insurance contract investments account for 9% of the Group’s investment portfolio. The majority of exposure to equity risk arises from exposure of the parent company.
The Group’s total exposure to property risk amounts to EUR 194.7 million. Own-use real property also includes property leased by the Group. With respect to the latter, the Group is not directly exposed to property risk, because it mainly involves long-term lease agreements. The Group’s real property is primarily located in Slovenia.
| Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
| Right-of-use assets | 10,933,109 | 9,821,211 | 4,548,297 | 3,587,916 |
| Investment property not intended for the direct conduct of insurance business | 75,110,973 | 78,977,800 | 43,840,055 | 44,451,276 |
| Real property for own use** | 108,655,212 | 113,170,073 | 65,143,310 | 67,775,451 |
| Total | 194,699,294 | 201,969,084 | 113,531,662 | 115,814,643 |
Exposure to real property in relation to its purpose*
The Group’s currency risk arises predominantly from subsidiaries operating in the regions whose local currency is not the euro. These companies carry out most of their transactions in the local currency, thus being less exposed to currency risk related to the euro. A part of the Group’s currency risk arises from the excess of assets over liabilities in US dollars, in respect to which the Group maintained a similar exposure as in the preceding year.
To a lesser extent, the Group manages investment risks with derivatives. The Group’s exposure to the Croatian kuna was reduced through a foreign exchange forward contract as at 31 December 2021. Financial investments in euros represent 91% of the Group’s financial investments, with the exposure to individual foreign currency not exceeding 3%.
105
| Item | EUR | USD | BAM | RSD | HRK | MKD | Ostalo | Skupaj |
|---|---|---|---|---|---|---|---|---|
| Investment property | 73,655,405 | 0 | 939,908 | 343,315 | 165,071 | 7,274 | 0 | 75,110,973 |
| Investments in associates | 35,591,377 | 0 | 439,970 | 0 | 0 | 0 | 0 | 36,031,348 |
| Financial investments | 2,696,810,852 | 0 | 33,348,260 | 16,018,156 | 46,360,648 | 82,083,642 | 24,907,486 | 2,937,700,149 |
| Debt securities | 2,356,117,282 | 0 | 16,010,033 | 10,329,321 | 40,483,390 | 39,468,000 | 16,185,482 | 2,512,569,814 |
| Equity securities | 295,388,355 | 13,665,459 | 2,653,539 | 9,161 | 17,595,702 | 563,555 | 1,084,890 | 330,960,661 |
| Derivatives | 20,317 | 0 | 0 | 0 | 0 | 0 | 0 | 20,317 |
| Deposits and loans | 41,257,160 | 3,672,768 | 2,425,387 | 5,349,172 | 25,019,940 | 7,504,037 | 3,109,909 | 88,338,373 |
| Other financial investments | 4,027,738 | 0 | 609,909 | 518,925 | 0 | 654,412 | 0 | 5,810,984 |
| Insurance technical provisions transferred to reinsurers | 134,760,073 | 11,754,730 | 10,916,992 | 5,380,847 | 6,582,046 | 0 | 5,445,203 | 174,839,891 |
| Operating receivables | 137,361,117 | 6,165,396 | 5,678,925 | 21,679,860 | 16,501,938 | 4,818,444 | 21,098,646 | 213,304,326 |
| Cash and cash equivalents | 59,471,380 | 969,631 | 15,422,167 | 1,707,739 | 1,931,335 | 476,533 | 2,342,846 | 82,321,631 |
| Total | 3,137,650,205 | 52,238,017 | 49,416,118 | 75,472,409 | 107,264,032 | 30,209,737 | 67,057,800 | 3,519,308,318 |
| Unit-linked life insurance contract investments | 567,844,531 | 44,651,331 | 0 | 0 | 2,552,189 | 108,067 | 4,461,368 | 619,617,486 |
| TOTAL ASSETS | 3,705,494,736 | 96,889,348 | 49,416,118 | 75,472,409 | 109,816,221 | 30,317,804 | 71,519,168 | 4,138,925,804 |
| Subordinated liabilities | 49,471,831 | 0 | 0 | 0 | 0 | 0 | 0 | 49,471,831 |
| Insurance technical provisions | 2,306,950,485 | 22,677,748 | 30,595,827 | 45,549,130 | 79,294,238 | 25,226,955 | 66,074,002 | 2,576,368,385 |
| Insurance technical provisions for unit-linked life insurance contracts | 573,082,632 | 44,651,331 | 0 | 0 | 0 | 108,067 | 4,461,368 | 622,303,398 |
| Employee benefits | 15,702,584 | 0 | 590,328 | 227,465 | 840,249 | 311,507 | 0 | 17,672,133 |
| Other financial liabilities | 2,653,226 | 0 | 37,556 | 377,054 | 15,372 | 2,445 | 0 | 3,085,653 |
| TOTAL LIABILITIES | 2,947,860,758 | 67,329,079 | 31,223,711 | 46,153,649 | 80,149,859 | 25,648,974 | 70,535,370 | 3,268,901,400 |
| Net currency exposure of the statement of financial position | 757,633,978 | 29,560,269 | 18,192,407 | 29,318,760 | 29,666,362 | 4,668,830 | 983,798 | 870,024,404 |
| Currency derivatives | 19,275,628 | -19,255,311 | 0 | 0 | 0 | 0 | 0 | 20,317 |
| Net currency exposure | 776,909,605 | 29,560,269 | 18,192,407 | 29,318,760 | 10,411,051 | 4,668,830 | 983,798 | 870,044,721 |
| Item | EUR | USD | BAM | RSD | HRK | MKD | Ostalo | Skupaj | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Investment property | 77,134,475 | 0 | 1,185,645 | 350,965 | 297,644 | 8,130 | 0 | 78,976,859 | |||
| Investments in associates | 27,787,566 | 0 | 450,150 | 0 | 0 | 0 | 0 | 28,237,715 | |||
| Financial investments | 2,655,845,492 | 0 | 29,599,429 | 36,851,948 | 44,203,906 | 71,435,682 | 22,696,740 | 2,887,380,555 | |||
| Debt securities | 2,438,770,066 | 0 | 17,596,291 | 15,016,223 | 37,741,302 | 38,116,197 | 13,669,674 | 2,585,157,996 | |||
| Equity securities | 200,675,591 | 9,278,833 | 1,557,322 | 20,901 | 8,555,741 | 279,604 | 0 | 220,367,992 | |||
| Derivatives | 113,301 | 0 | 0 | 0 | 0 | 0 | 0 | 113,301 | |||
| Deposits and loans | 11,177,083 | 2,724,305 | 19,691,315 | 6,018,895 | 24,763,744 | 8,404,670 | 2,499,115 | 75,279,127 | |||
| Other financial investments | 5,109,451 | 0 | 587,088 | 422,808 | 0 | 342,792 | 0 | 6,462,139 | |||
| Insurance technical provisions transferred to reinsurers | 96,854,065 | 10,588,314 | 6,807,883 | 4,610,331 | 5,065,478 | 0 | 1,947,567 | 125,873,638 | |||
| Operating receivables | 150,058,314 | 3,648,543 | 6,207,656 | 15,420,036 | 14,787,717 | 6,067,265 | 7,772,900 | 203,962,431 | |||
| Cash and cash equivalents | 57,215,668 | 1,685,244 | 14,907,400 | 2,329,788 | 3,520,502 | 213,554 | 2,027,508 | 81,899,664 | |||
| Total | 3,064,895,580 | 45,521,530 | 66,410,682 | 66,915,026 | 95,107,023 | 28,985,689 | 38,495,333 | 3,406,330,862 | |||
| Unit-linked life insurance contract investments | 469,633,743 | 29,127,807 | 0 | 0 | 2,238,983 | 258 | 808,188 | 501,808,979 | |||
| TOTAL ASSETS | 3,534,529,323 | 74,649,337 | 66,410,682 | 66,915,026 | 97,346,006 | 28,985,947 | 39,303,521 | 3,908,139,841 | |||
| Subordinated liabilities | 49,423,693 | 0 | 0 | 0 | 0 | 0 | 0 | 49,423,693 | |||
| Insurance technical provisions | 2,259,902,671 | 0 | 17,650,600 | 46,343,223 | 49,235,940 | 73,662,286 | 24,628,309 | 51,806,112 | 2,523,229,141 | ||
| Insurance technical provisions for unit-linked life insurance contracts | 480,048,197 | 29,127,807 | 0 | 0 | 0 | 258 | 808,188 | 509,984,450 | |||
| Employee benefits | 15,734,257 | 0 | 524,799 | 194,598 | 984,470 | 343,029 | 0 | 17,781,153 | |||
| Other financial liabilities | 1,996,326 | 0 | 337,985 | 519,667 | 15,777 | 26,084 | 0 | 2,895,839 | |||
| TOTAL LIABILITIES | 2,807,105,144 | 46,778,407 | 47,206,007 | 49,950,205 | 74,662,533 | 24,997,680 | 52,614,300 | 3,103,314,276 | |||
| Net currency exposure of the statement of financial position | 727,424,179 | 27,870,930 | 19,204,675 | 16,964,821 | 22,683,473 | 3,988,267 | -13,310,779 | 804,825,565 | |||
| Currency derivatives | 12,945,506 | 0 | 0 | 0 | -12,869,218 | 0 | 0 | 76,288 | |||
| Net currency exposure | 740,369,685 | 27,870,930 | 19,204,675 | 16,964,821 | 9,814,255 | 3,988,267 | -13,310,779 | 804,901,853 |
Insurance technical provisions are reduced to the level of accounting estimates. The LAT carried out for insurance technical provisions showed a lower surplus of their amount. The Company manages interest rate risk with economic valuation. The latter is presented in the Solvency and Financial Condition Report, which shows the interest rate sensitivity of assets and liabilities to economic impacts. In this regard, the cash flows of assets and liabilities are carefully matched and their duration gap is reduced.
In mid-2021, the Company began to reduce the maturity of its investment portfolio, because a rise in interest rates and inflationary pressures were expected, which were realised at the end of 2021. Interest rate trends show that interest rates were significantly higher as at 31 December 2021 than the year before. They may continue to rise, which would end the period of low interest rates.
| Triglav Group | 31 Dec. 2021 | 31 Dec. 2020 | ||
|---|---|---|---|---|
| +100 bp | -100 bp | +100 bp | -100 bp | |
| Debt securities issued by countries | -95,209,665 | 109,701,001 | -120,667,871 | 143,684,528 |
| Debt securities issued by financial institutions | -11,781,910 | 12,466,526 | -15,155,525 | 16,167,191 |
| Debt securities issued by companies | -13,766,502 | 14,581,999 | -14,605,276 | 15,237,317 |
| Compound securities | 4,851 | 1,427 | -156 | 7,977 |
| Other | 0 | 0 | 0 | 0 |
| Total financial investments | -120,753,227 | 136,750,952 | -150,428,828 | 175,097,013 |
| Insurance technical provisions for life insurance | -7,114,800 | 89,556,173 | -18,578,329 | 125,293,539 |
| Insurance technical provisions for non-life insurance | 0 | 23,687,975 | 0 | 25,925,448 |
| Total insurance technical provisions | -7,114,800 | 113,244,149 | -18,578,329 | 151,218,987 |
| Impact on capital | -113,638,426 | 23,506,803 | -131,850,499 | 23,878,027 |
| Impact on fair value reserves | -102,271,823 | 116,707,229 | -128,803,593 | 152,194,239 |
| Impact on profit or loss | -11,366,604 | -93,200,426 | -3,046,907 | -128,316,212 |
Sensitivity analysis of assets and liabilities to interest rate changes*
Comprehensive income or profit or loss of the Group showed that a sudden decrease of 100 basis points would have a positive impact (in the amount of EUR 19.3 million), while a sudden increase of 100 basis points would have a negative impact (in the amount of EUR 110.7 million). The impact of a drop in interest rates on the financial statements is lower than in the preceding year, which is a consequence of lower interest sensitivity of assets and liabilities. Assets are less sensitive to interest rates due to lower exposure and shorter maturity compared to the preceding year, while insurance liabilities are less sensitive due to higher interest rate levels in the period.
The largest share of the Group’s assets is accounted for by debt securities. Approximately 65% of debt securities are accounted for government bonds and the rest by corporate bonds. The latter are divided almost equally into financial and non-financial sector bonds. Among individual issuers of debt securities, excluding unit-linked life insurance contract investments, the Group is most exposed to Germany, followed by Slovenia. See Section 7.9 of the Business Report for more information on the concentration of financial investments.
The Group is exposed to credit risks from reinsurance, banks and receivables from policyholders and other partners. It is exposed to banks through cash held for the operations of Zavarovalnica Triglav and other Group companies. Compared to the 2020 year-end, the credit risk assessment did not increase significantly as at 31 December 2021, despite the increase in reinsurance exposure.
| Triglav Group | 31 Dec. 2021 | 31 Dec. 2020 | ||
|---|---|---|---|---|
| Bank | Cash from unit-linked life insurance contract | Bank | Cash from unit-linked life insurance contract | |
| 82,321,630 | 81,899,664 | |||
| Zavarovalnica Triglav | 13,912,991 | 22,304,222 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Investments | 2,042,836 | 3,523,659 | 1,967,631 | 3,390,040 |
| Other cash | 80,278,794 | 78,375,005 | 11,945,360 | 18,914,182 |
| Reinsurers | 201,967,510 | 146,357,718 | 149,562,360 | 121,511,895 |
| Persons insured and other partners* | 44,905,588 | 42,929,510 | 16,881,127 | 17,617,771 |
| Total | 329,194,728 | 271,186,892 | 180,356,478 | 161,433,888 |
Total excluding cash from unit-linked life insurance contract investments
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Investments | 327,151,892 | 267,663,233 | 178,388,847 | 158,043,848 |
| 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|
| AAA | 0.0% | 0.0% |
| AA to BB | 75.9% | 76.7% |
| Below BBB | 9.4% | 9.0% |
| Not rated | 14.8% | 14.3% |
| Average credit rating | BBB | BBB |
| 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|
| Germany | 19.2% | 25.8% |
| Russia | 12.6% | 8.7% |
| Serbia | 8.6% | 8.1% |
| Bosnia and Herzegovina | 7.0% | 7.3% |
| Great Britain | 6.1% | 5.5% |
| 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|
| Slovenia | 52.5% | 67.4% |
| Russia | 16.1% | 8.1% |
| Barbados | 4.3% | 4.4% |
| Kazakhstan | 3.4% | 4.0% |
| Great Britain | 3.2% | 2.6% |
Credit risk exposure by partner type
With regard to cash and cash equivalents, the Company is most exposed to Slovenian banks, which mainly have the “BBB” credit rating or are without credit ratings. In addition, the Group is exposed to banks in the countries of subsidiaries, which are usually without a credit rating. The table above also shows cash from unit-linked life insurance contract investments, which do not pose any direct credit risks to the Group. Since the end of 2020, the credit ratings of banks to which the Group is exposed have not changed significantly.
The Company monitors all reinsurance partners at Group level, with the largest exposure arising from the parent company and the Group’s reinsurance company.
Exposure to reinsurance partners by credit rating
Concentration of the largest exposures to reinsurers by country
The Group is most exposed to reinsurers with the “A” credit rating. The proportion of partners with the “AA” credit rating is also high. The proportion of non-rated reinsurance partners at Group level is 14.8%. The bulk arises from the insurance claims of insurance companies active in the strategic markets, which are covered by non-rated reinsurers. The proportion of non-rated reinsurance partners in the Company is considerably lower, i.e. 7.1%.
The geographical concentration of reinsurers at Group level is the highest in Germany. Compared to 2020, it changed mainly due to the increase in the concentration of exposure to reinsurers in Russia, which predominantly arises from transactions at Zavarovalnica Triglav as a result of reported claims reinsured in Russia. Due to the exposure to its subsidiary Pozavarovalnica Triglav Re, the Company is geographically most exposed in Slovenia.
The Group is exposed to receivables through past due receivables from insurance operations and other receivables. In the context of credit risks, the Company monitors and manages receivables from policyholders and agents, other receivables from direct insurance operations and other short-term receivables, particularly subrogation receivables. In the Group’s portfolio, these receivables are well dispersed and therefore do not cause concentration. All receivables from insurance transactions with clients are presented in Section 3.10 of the Accounting Report.
The Company monitors the payment discipline of receivables from policyholders in detail using several indicators. The movements of written premium and payments are monitored by maturity, in different time periods and by insurance class.
Separately from receivables from direct insurance operations, the Company also monitors and manages subrogation receivables. These pose a credit risk of the person insured’s default. In addition to the payment of subrogation receivables, the Company monitors the effectiveness of the collection of credited subrogation receivables and the share of subrogation receivables in relation to claims settled.
| Triglav Group | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|
| Receivables due from policyholders | Subrogation receivables | Receivables due from policyholders | Subrogation receivables |
| 66.4% | 41.2% | 68.2% | 41.3% |
| Zavarovalnica Triglav | 31 Dec. 2021 | 31 Dec. 2020 | |
| 88.6% | 45.4% | 87.4% | 44.6% |
The payment discipline did not change significantly during the year with regard to receivables from policyholders and subrogation receivables. It will remain within expected values in 2021 as well.
Zavarovalnica Triglav and the Group companies had adequate liquidity in 2021. See Section 1.5 of Risk Management for further details about liquidity risk management.
Futures, options and other financial derivatives are used only if they help to mitigate market risks. As a possible measure to obtain additional liquidity, repo lines were established with commercial banks. The Company does not carry out securities lending techniques.
The Group’s total financial assets exceeded its total financial liabilities also in 2021. The surplus is presented in the maturity buckets of 1–5 years, 5–10 years and with undetermined maturity. In other buckets, 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. The insurance technical provisions 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.
Liquidity at Group level is assessed based on the liquidity of the Company and subsidiaries. The Triglav Group actively participated in the EIOPA stress test in 2021, which confirmed its strong liquidity in the case of severe consequences of the pandemic.
107
SASB: FN-IN-550a.3
Business Report
Risk Management
Risk exposure and management
| Triglav Group as at 31 Dec. 2021 | Financial Assets | |||||||
|---|---|---|---|---|---|---|---|---|
| Not defined | Up to 1 year | 1 to 5 years | 5 to 10 years | Over 10 years | Total | |||
| Financial investments | 299,747,250 | 305,299,752 | 1,410,124,941 | 586,181,956 | 336,346,249 | 2,937,700,148 | ||
| Debt securities | 0 | 268,969,894 | 1,322,232,348 | 585,021,323 | 336,346,249 | 2,512,569,814 | ||
| held to maturity | 0 | 12,364,163 | 57,517,081 | 65,706,297 | 21,973,192 | 157,560,733 | ||
| at fair value through profit or loss | 0 | 49,754,895 | 263,687,277 | 112,089,222 | 5,933,801 | 431,465,195 | ||
| available for sale | 0 | 206,850,836 | 1,001,027,990 | 407,225,804 | 302,447,617 | 1,917,552,247 | ||
| loans and receivables | 0 | 0 | 0 | 0 | 5,991,639 | 5,991,639 | ||
| Equity securities | 293,369,717 | 422,663 | 37,159,397 | 8,884 | 0 | 330,960,661 | ||
| at fair value through profit or loss | 112,613,404 | 0 | 0 | 0 | 0 | 112,613,404 | ||
| available for sale | 180,756,313 | 422,663 | 37,159,397 | 8,884 | 0 | 218,347,257 | ||
| Derivatives | 20,317 | 0 | 0 | 0 | 0 | 20,317 | ||
| Loans and receivables | 546,233 | 35,907,195 | 50,733,196 | 1,151,749 | 0 | 88,338,373 | ||
| Other financial investments | 5,810,983 | 0 | 0 | 0 | 0 | 5,810,983 | ||
| Unit-linked life insurance contract investments | 594,159,007 | 7,191,213 | 12,620,647 | 5,633,332 | 13,287 | 619,617,486 | ||
| at fair value through profit or loss | 594,159,007 | 7,191,213 | 12,620,647 | 5,633,332 | 13,287 | 619,617,486 | ||
| available for sale | 0 | 0 | 0 | 0 | 0 | 0 | ||
| loans and receivables | 0 | 0 | 0 | 0 | 0 | 0 |
| Insurance technical provisions transferred to reinsurers | 707,317 | 111,030,024 | 45,868,052 | 13,893,756 | 3,340,741 | 174,839,890 |
|---|---|---|---|---|---|---|
| Operating receivables (including tax receivables) | 19,462,809 | 173,998,442 | 18,838,077 | 1,005,010 | 1 | 213,304,339 |
| Cash | 60,027,240 | 22,294,390 | 0 | 0 | 0 | 82,321,630 |
| Total | 974,103,623 | 619,813,821 | 1,487,451,717 | 606,714,054 | 339,700,278 | 4,027,783,493 |
| Subordinated liabilities | 0 | 0 | 0 | 0 | 49,471,831 | 49,471,831 |
|---|---|---|---|---|---|---|
| Insurance technical provisions | 3,704,868 | 810,272,794 | 715,686,591 | 333,267,267 | 713,436,864 | 2,576,368,384 |
| Insurance technical provisions for unit-linked life insurance contracts | 526,332,718 | 3,410,853 | 16,097,832 | 22,339,710 | 54,122,285 | 622,303,398 |
| Other financial liabilities | 949,088 | 2,106,282 | 236,919 | –206,664 | 22 | 3,085,647 |
| Total | 530,986,674 | 815,789,929 | 732,021,342 | 355,400,313 | 817,031,002 | 3,251,229,260 |
| Financial Assets | Not defined | Up to 1 year | 1 to 5 years | 5 to 10 years | Over 10 years | Total | |
|---|---|---|---|---|---|---|---|
| Financial investments | 230,651,380 | 314,246,530 | 1,129,869,235 | 666,573,748 | 546,039,662 | 2,887,380,555 | |
| Debt securities | 0 | 293,809,361 | 1,082,460,413 | 665,052,457 | 544,440,537 | 2,585,762,768 | |
| held to maturity | 0 | 31,231,539 | 152,806,645 | 129,670,716 | 32,856,608 | 346,565,508 | |
| at fair value through profit or loss | 0 | 63,433,997 | 286,695,148 | 144,426,381 | 45,085,691 | 539,641,217 | |
| available for sale | 0 | 187,050,251 | 641,413,262 | 390,955,360 | 460,507,176 | 1,679,926,049 | |
| loans and receivables | 0 | 12,093,574 | 1,545,358 | 0 | 5,991,062 | 19,629,994 | |
| Equity securities | 220,347,368 | 0 | 0 | 20,624 | 0 | 220,367,992 | |
| at fair value through profit or loss | 69,654,292 | 0 | 0 | 0 | 0 | 69,654,292 | |
| available for sale | 150,693,076 | 0 | 0 | 20,624 | 0 | 150,713,700 | |
| Derivatives | 0 | 113,301 | 0 | 0 | 0 | 113,301 | |
| Loans and receivables | 3,841,873 | 20,323,868 | 47,408,822 | 1,500,667 | 1,599,125 | 74,674,355 | |
| Other financial investments | 6,462,139 | 0 | 0 | 0 | 0 | 6,462,139 | |
| Unit-linked life insurance contract investments | 443,699,151 | 27,399,797 | 8,441,839 | 4,947,720 | 17,320,472 | 501,808,979 | |
| at fair value through profit or loss | 443,699,151 | 27,399,797 | 8,441,839 | 4,947,720 | 17,320,472 | 501,808,979 | |
| available for sale | 0 | 0 | 0 | 0 | 0 | 0 | |
| loans and receivables | 0 | 0 | 0 | 0 | 0 | 0 | |
| Insurance technical provisions transferred to reinsurers | 735,663 | 54,328,865 | 49,419,914 | 14,737,162 | 6,652,033 | 125,873,637 |
| Operating receivables (including tax receivables) | 18,201,144 | 180,721,999 | 3,919,146 | 921,097 | 199,054 | 203,962,440 | |
|---|---|---|---|---|---|---|---|
| Cash | 63,697,538 | 18,202,126 | 0 | 0 | 0 | 81,899,664 | |
| Total | 756,984,876 | 594,899,317 | 1,191,650,134 | 687,179,727 | 570,211,221 | 3,800,925,275 |
| Subordinated liabilities | 0 | 0 | 0 | 0 | 49,423,693 | 49,423,693 | |
|---|---|---|---|---|---|---|---|
| Insurance technical provisions | 44,804 | 751,488,693 | 704,856,157 | 427,309,850 | 639,529,640 | 2,523,229,144 | |
| Insurance technical provisions for unit-linked life insurance contracts | 443,467,200 | 2,050,279 | 9,918,342 | 14,200,974 | 40,347,914 | 509,984,709 | |
| Other financial liabilities | 212,197 | 2,685,974 | -2,362 | 1 | 24 | 2,895,834 | |
| Total | 443,724,201 | 756,224,946 | 714,772,137 | 441,510,825 | 729,301,271 | 3,085,533,380 |
| Up to 1 year | 1 to 5 years | 5 to 10 years | Over 10 years | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Financial investments | 207,307,887 | 178,362,414 | 875,493,902 | 420,843,793 | 286,671,983 | 1,968,679,979 | ||||
| Debt securities | 0 | 175,031,547 | 854,813,120 | 420,023,044 | 286,671,983 | 1,736,539,694 | ||||
| held to maturity | 0 | 10,423,856 | 49,873,577 | 65,706,297 | 14,942,503 | 140,946,233 | ||||
| at fair value through profit or loss | 0 | 15,282,149 | 101,084,076 | 55,128,541 | 3,675,459 | 175,170,224 | ||||
| available for sale | 0 | 149,325,542 | 703,855,468 | 299,188,206 | 262,062,381 | 1,414,431,597 | ||||
| loans and receivables | 0 | 0 | 0 | 0 | 5,991,639 | 5,991,639 | ||||
| Equity securities | 204,009,208 | 0 | 0 | 0 | 0 | 204,009,208 | ||||
| at fair value through profit or loss | 31,631,419 | 0 | 0 | 0 | 0 | 31,631,419 | ||||
| available for sale | 172,377,789 | 0 | 0 | 0 | 0 | 172,377,789 | ||||
| Derivatives | 20,317 | 0 | 0 | 0 | 0 | 20,317 | ||||
| Loans and receivables | 0 | 3,330,867 | 20,680,782 | 820,749 | 0 | 24,832,398 | ||||
| Other financial investments | 3,278,362 | 0 | 0 | 0 | 0 | 3,278,362 | ||||
| Unit-linked life insurance contract investments | 529,598,379 | 4,477,899 | 2,755,241 | 2,584,215 | 2,237 | 539,417,972 | ||||
| at fair value through profit or loss | 529,598,379 | 4,477,899 | 2,755,241 | 2,584,215 | 2,237 | 539,417,972 | ||||
| available for sale | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| loans and receivables | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Insurance technical provisions transferred to reinsurers | 86,954,349 | 38,199,558 | 8,394,428 | 2,529,622 | 136,077,957 | |||||
| Operating receivables (including tax receivables) | 0 | 105,681,286 | 0 | 0 | 0 | 105,681,286 | ||||
| Cash | 13,912,991 | 0 | 0 | 0 | 0 | 13,912,991 | ||||
| Total | 750,819,257 | 375,475,948 | 916,448,701 | 431,822,437 | 289,203,842 | 2,763,770,185 |
| Up to 1 year | 1 to 5 years | 5 to 10 years | Over 10 years | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Subordinated liabilities | 0 | 0 | 0 | 0 | 49,471,831 | 49,471,831 | |||||
| Insurance technical provisions | 0 | 516,066,665 | 562,566,480 | 222,178,125 | 439,561,917 | 1,740,373,186 | |||||
| Insurance technical provisions for unit-linked life insurance contracts | 499,681,626 | 843,819 | 5,022,362 | 8,158,599 | 26,428,645 | 540,135,052 | |||||
| Other financial liabilities | 0 | 1,684,403 | 0 | 0 | 0 | 1,684,403 | |||||
| Total | 499,681,626 | 518,594,886 | 567,588,842 | 230,336,724 | 515,462,393 | 2,331,664,472 |
| Zavarovalnica Triglav as at 31 Dec. 2020 | Not dened | Up to 1 year | 1 to 5 years | 5 to 10 years | Over 10 years | Total | |
|---|---|---|---|---|---|---|---|
| FINANCIAL ASSETS | Financial investments | 119,922,685 | 212,380,789 | 704,231,444 | 487,748,790 | 459,304,664 | 1,983,588,373 |
| Debt securities | 0 | 211,857,208 | 681,095,384 | 486,714,123 | 457,705,539 | 1,837,372,253 | |
| held to maturity | 0 | 6,164,778 | 43,634,286 | 77,968,804 | 16,140,644 | 143,908,512 | |
| at fair value through profit or loss | 0 | 32,999,460 | 78,661,256 | 66,561,824 | 27,527,067 | 205,749,607 | |
| available for sale | 0 | 172,692,969 | 558,389,731 | 342,183,495 | 408,046,766 | 1,481,312,962 | |
| loans and receivables | 0 | 0 | 410,110 | 0 | 5,991,062 | 6,401,173 | |
| Equity securities | 113,586,570 | 0 | 0 | 0 | 0 | 113,586,570 | |
| at fair value through profit or loss | 1,863,439 | 0 | 0 | 0 | 0 | 1,863,439 | |
| available for sale | 111,723,131 | 0 | 0 | 0 | 0 | 111,723,131 | |
| Derivatives | 0 | 113,301 | 0 | 0 | 0 | 113,301 | |
| Loans and receivables | 2,681,255 | 410,281 | 23,136,060 | 1,034,667 | 1,599,125 | 28,861,388 | |
| Other financial investments | 3,654,860 | 0 | 0 | 0 | 0 | 3,654,860 | |
| Unit-linked life insurance contract investments | 396,272,477 | 26,205,391 | 775,998 | 2,669,441 | 16,369,180 | 442,292,488 | |
| at fair value through profit or loss | 396,272,477 | 26,205,391 | 775,998 | 2,669,441 | 16,369,180 | 442,292,488 | |
| available for sale | 0 | 0 | 0 | 0 | 0 | 0 | |
| loans and receivables | 0 | 0 | 0 | 0 | 0 | 0 | |
| Insurance technical provisions transferred to reinsurers | 0 | 66,547,514 | 28,797,332 | 6,691,530 | 3,867,062 | 105,903,438 |
| Operating receivables (including tax receivables) | 0 | 95,800,206 | 0 | 0 | 0 | 95,800,206 |
|---|---|---|---|---|---|---|
| Cash | 22,304,222 | 0 | 0 | 0 | 0 | 22,304,222 |
| Total | 538,499,384 | 400,933,900 | 733,804,775 | 497,109,761 | 479,540,906 | 2,649,888,726 |
| Subordinated liabilities | 0 | 0 | 0 | 0 | 49,423,693 | 49,423,693 |
|---|---|---|---|---|---|---|
| Insurance technical provisions | 0 | 486,927,330 | 550,053,043 | 299,025,324 | 414,312,291 | 1,750,317,988 |
| Insurance technical provisions for unit-linked life insurance contracts | 420,868,884 | 1,005,816 | 4,629,113 | 6,617,380 | 15,604,904 | 448,726,097 |
| Other financial liabilities | 0 | 1,627,543 | 0 | 0 | 0 | 1,627,543 |
| Total | 420,868,884 | 489,560,689 | 554,682,156 | 305,642,704 | 479,340,888 | 2,250,095,321 |
Operational risks are proactively managed, in addition to any shortcomings, changes and trends in the internal and external environments being identified that may affect their increase. Such an approach allowed the Company to respond quickly even in the emergency situation such as the COVID-19 pandemic. Additional measures were taken where necessary and more attention was paid to the risks identified as increased (the absence of key employees or simultaneous absence of many employees due to illness, adjusted organisation of work and the method of executing business processes, additional information risks due to working from home and remote business and regulatory changes due to the government emergency measures).
Although the Company has not yet suffered a loss due to cybersecurity incidents, it is aware of their growing threat. The key to their management is regular maintenance and additional upgrades of the information security management system. In order to step up the identification of vulnerabilities and be better prepared for such incidents, the biggest cybersecurity threats and the Group’s business segments that would be most affected were examined in greater detail as part of own risk and solvency assessment in 2021. Based on the findings, appropriate measures were developed to improve security. The Company carefully examined the cybersecurity scenario, in which it assessed the potential damage to operations, taking into account the established supervisory mechanisms. Based on this analysis, the cybersecurity incident response plan was updated, opportunities for improvement were identified and additional controls were set up, which will be checked next year.
The Company is also exposed to regulatory risk and risks related to digital business solutions and remote business with existing and potential clients. The latter include, among others, risks in terms of regulatory compliance and information security. Managing them requires meeting information security standards and taking measures in the process of identifying and authenticating individuals, ensuring the accuracy and completeness of client data, the electronic signing and authorisation of documents, secure transmission and access to documents, ensuring confidentiality, transparency and other measures to achieve compliance with regulations governing electronic business, electronic signing and personal data protection. The Company continues to be exposed to outsourcing risks and risks relating to the conduct of insurance business in foreign markets. Regulatory risk is managed by promptly implementing legislative changes in business processes, regular monitoring business practices, the positions of supervisory and other state bodies, and participating in regular and extraordinary Slovenian Insurance Association procedures.
partially outsourced. Their unavailability would not significantly affect the implementation of the Company’s key business processes. In terms of content, they relate mainly to contractual insurance agency services (sales via agencies) and the maintenance of software, hardware and IT systems. Operational and other risks are also monitored in relation thereto, and action is taken as necessary.
In 2021, the Company implemented new GRC/IRM application software (governance, risk, compliance/integrated risk management) for more effective operational risk management. It enables more comprehensive management of data on these risks, including cyber and regulatory risks, which were identified as main operational risks to the Company’s operations, and outsourcing risks. This tool also supports internal audit processes for the even more coordinated operation of key functions in risk management processes and a more responsive overview. Furthermore, the GRC/IRM tool increased the completeness of the assessment of potential operational risks.
Based on the experience gained during the COVID-19 pandemic, the Company thoroughly upgraded the analysis of the impact of the business continuity management system’s (BCMS) downtime on operations. Additional business continuity plans for current scenarios were developed and checked. Recovery IT plans were tested successfully.
In 2021, the Company revised recovery plans for some key systems in its subsidiaries and, in cooperation with them, updated the business impact assessment due to the interruption of key processes.
To manage non-financial risks, the reputational risk measurement method was upgraded, which takes into account additional aspects that may negatively affect the Group’s reputation. The negative impact on reputation may be internal or 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 these environmental goals and aims to respect unrestricted, healthy competition in the market. Maintaining a low reputational risk assessment is key, as the Group sets high goals in this area.
In order to assess reputational risk and the adequacy of its actions, the Group regularly carries out surveys to monitor key stakeholders’ views of the Group. In addition, the Company follows in detail external media announcements, monitors the strength of the Triglav brand, measures the satisfaction of employees and clients and analyses feedback from other stakeholders. Satisfaction of
Business Report
Risk Management
Risk exposure and management
Key stakeholders is also monitored with various indicators. Employee satisfaction is measured using the ORVI index (see Section 12.4.2.3 Organizational vitality (climate) and organizational culture for more information), and quality client satisfaction management by the NPS indicator (see Section 12.4.1.1 Client satisfaction for more information). In order to maintain the reputation of the Group, especially among shareholders and investors, care is taken to achieve the target credit rating (see Section 6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav for more information).
are identie d that will be most expo sed to change due to the greater role o f sustainable operations. At this t ime, at tention is paid to these risks mostly in the conte x t of the own risk and solvenc y assessment, which examines climate change risks by analysing the exposure to catastro phes and stress tes ting of the related por tfolio.
In terms of risks and capital ade quacy, Zavarov alnic a T ri glav and the Tr iglav Gr oup ended 2021 within the framework set out in the Risk Appeti te Statement. The Company also remain s highly liquid. The year 20 21 was mark ed b y the continuing pa ndemic and the economic recovery o f global economies (See Sec tion 7. 2 Environmental impact on the Triglav Group ’s operations for more inform ation).
As a re sult of the pandemic and related suppor t meas ures for economic growth adop ted by governments worldwide, concern is ri sing about increased inationar y pressures, to which central banks will respond by raising interest rates and abandoning a loose mone tary p olic y. An excessive response could lead to ec onomic cooling and even to a recession. Wi th higher corporate indebtedne ss, a debt crisis may develop with increased credit spre ads, lower grow th in ma rket prices of equit y investments and, consequently, increase d mark e t, credit and liquid it y risks. The outlo ok for the fu ture remains g ood, with mo derate grow th in nanci al markets. However, the rea lisation of current fore cast s of interes t rate changes may bring a n end to the peri od of l ow interest rates. Wi th higher ination, there are a lso risks associated with higher prices fo r ser vices and rising costs, which may lead to a deterioratio n in the protabilit y of no n-life and health ins urance. As a result, the combi ned ratios and the numb er of surrenders o f life insurance policies wi th a savings component may incr ease.
In addition, a deep re cession could also have a negative impac t on demand for insurance and on insurance premium. This is also related to liquidity risk, bo th due to the potential reduc tion of in ows from the insurance business and due to lower market liquidity o f the inv estment por t folio.
Signicant poten tial i mpac t s on the Triglav Group ’s op erations, which could be realised in the coming yea r, are related p rimarily to mark e t, under writing and credit risks. With regard tomarket risk s, an increased risk could be obser ved, espe cially in s pread risk due to the aggravation of the economic s ituation or the deterior ation in the credit ra tings of issuers of se curities. Nega tive developmen ts in stock mark e ts and a possible decline in the value of real proper t y are also expe c ted. An increase in interest rate risk due to rising intere st rates would have a negative impact on b oth the Company and the Group. In the conte x t of under writing risks, the Company consistently monitors premium risks, i.e. the ade quacy o f the pricing polic y, and with re spect to credit risks, the paym ent discipline of receiv ables and the creditwor thiness of im por tant partners.
| Tr iglav Group | Impact on capital | |||
|---|---|---|---|---|
| Impact on fair value reserves | Impact on profit or loss | Total impact on capital | ||
| Zavarov aln ica Triglav | Impact on capital | |||
| Equit y risk (–10%) | –20,394,885 | –12,701,181 | –33,096,066 | |
| –17,141,969 | –3,258,952 | –20,400,921 | ||
| Prop er t y risk (– 5%) | 0 | –1,441,562 | –1,441,562 | |
| 0 | –1,065,316 | –1,065,316 | ||
| Inter est r ate ri sk (+ 10 0 bp)** | –102,271,823 | –11,366,604 | –113,638,426 | |
| –82,277,092 | –369,965 | –82,647,057 | ||
| Combine d ra tio risk (+ 1 pp) | 0 | –6,770,795 | –6,770,795 | |
| 0 | –4,112,225 | –4,112,225 |
To t a l –122,666,708 –32,280,142 –154,946,849 –99,419,061 –8,806,458 –108,225,519
Spr ead r isk (+ 10 0 bp)* * –102,271,823 –18,481,404 –120,753,227 –82,277,092 –7,484,766 –89,761,857
** The table shows the sensitivity test of the change related to the parallel shift in the yield curve, where the increase in risk-free interest rate and credit spreads on the assets side has the same effect; as a result, the Company does not differentiate according to the type and credit quality of the security.
200 years show that the Company would be able to meet all operating liabilities and maintain adequate liquidity.
In the context of testing the sensitivity of the credit portfolio of both the Company and the Group, possible events – consequences of the epidemic – were assumed which would have a material impact on the Company’s and the Group’s operations in the coming years. The most probable among them was evaluated.
When testing sensitivity to partners (banks) in terms of cash and cash equivalents, it was found that in the event of a deterioration in the credit rating of the largest partner by one notch at the same exposure, their average credit rating would not change.
Similarly, when testing sensitivity to our reinsurance partners, it was found that in the event of a deterioration in the credit rating of our largest partner by one notch at the same exposure, the average credit rating of these partners would not change.
The Company’s sensitivity related to insurance receivables was tested by reducing the expected share of payments for 2022. This share was defined according to its lowest level in the last ten years, which was during the 2012 debt crisis. In this scenario, it was estimated that the reduction in expected payments would amount to EUR 66.3 million and would have a direct impact on profit or loss. The estimate was prepared on the assumption that insurance receivables in 2022 were equal to those in 2021.
The development of the risk management system will continue in 2022, particularly in areas where the trend of increasing risks will be identified. Development activities will also be shaped by legislative changes, which are expected especially in relation to sustainability and liquidity risks.
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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2021
and the accompanying accounting policies and notes to the accounting policies.
The Management Board is responsible 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 2021 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 according 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 major risks to which the Company and the Group are exposed to.
The Management Board is also responsible for appropriate accounting practices, for the adoption of appropriate measures for the protection of property, 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
Member of the Management Board
Tadej Čoroli
Member of the Management Board
Barbara Smolnikar
Member of the Management Board
David Benedek
Member of the Management Board
Marica Makoter
Member of the Management Board
in EUR
| Triglav Group | Zavarovalnica Triglav | |||||||
| Notes | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | ||||
| ASSETS | 4,374,353,616 | 4,139,441,072 | 3,118,944,094 | 2,995,518,165 | ||||
| Intangible assets | 3.1 | 107,184,415 | 100,975,475 | 67,022,027 | 62,397,579 | |||
| Property, plant and equipment | 3.2 | 108,655,212 | 113,291,036 | 65,143,307 | 67,775,451 | |||
| Non-current assets held for sale | 3.13 | 3,812,044 | 915,851 | 0 | 0 | |||
| Deferred tax assets | 3.21 | 927,425 | 778,589 | 0 | 0 | |||
| Investment property | 3.3 | 75,110,973 | 78,977,800 | 43,840,055 | 44,451,276 | |||
| Right of use assets | 3.4 | 10,933,109 | 9,821,211 | 4,548,298 | 3,587,916 | |||
| Investments in subsidiaries | 3.5 | 0 | 0 | 131,924,683 | 132,337,466 | |||
| Investments in associates | 3.6 | 36,031,346 | 28,237,714 | 41,693,997 | 31,337,951 | |||
| – accounted for using the equity method | 36,031,346 | 28,237,714 | 0 | 0 | ||||
| – measured at fair value | 0 | 0 | 41,693,997 | 31,337,951 | ||||
| Financial investments | 3.7 | 2,937,700,150 | 2,887,380,559 | 1,968,679,979 | 1,983,588,373 | |||
| – loans and deposits | 98,104,537 | 97,971,079 | 32,521,523 | 36,951,085 | ||||
| – held to maturity | 157,560,733 | 162,824,686 | 140,946,233 | 143,908,512 | ||||
| – available for sale | 2,137,609,082 | 2,101,914,068 | 1,588,390,263 | 1,595,002,429 | ||||
| – recognised at fair value through profit and loss | 544,425,798 | 524,670,726 | 206,821,960 | 207,726,347 | ||||
| Unit-linked insurance assets | 3.8 | 619,617,488 | 501,808,980 | 539,417,972 | 442,292,488 | |||
| Reinsurers’ share of technical provisions | 3.9 | 174,839,890 | 125,873,637 | 136,077,958 | 105,903,438 | |||
| Receivables | 3.10 | 212,376,909 | 203,183,851 | 105,169,567 | 95,800,206 | |||
| – receivables from direct insurance operations | 116,855,207 | 105,484,939 | 73,516,574 | 67,632,214 | ||||
| – receivables from reinsurance and coinsurance operations | 67,200,932 | 72,355,133 | 23,522,340 | 19,797,094 | ||||
| – current tax receivables | 4,127,384 | 1,950,631 | 564,166 | 0 | ||||
| – other receivables | 24,193,386 | 23,393,148 | 7,566,487 | 8,370,898 | ||||
| Other assets | 3.11 | 4,843,025 | 6,296,705 | 1,513,260 | 3,741,799 | |||
| Cash and cash equivalents | 3.12 | 82,321,630 | 81,899,664 | 13,912,991 | 22,304,222 | |||
| EQUITY AND LIABILITIES | 4,374,353,616 | 4,139,441,072 | 3,118,944,094 | 2,995,518,165 | ||||
| Equity | 3.14 | 932,986,869 | 870,151,947 | 675,221,933 | 644,003,173 | |||
| Controlling interests | 930,511,224 | 867,648,574 | 675,221,933 | 644,003,173 | ||||
| – share capital | 73,701,392 | 73,701,392 | 73,701,392 | 73,701,392 | ||||
| – share premium | 50,283,747 | 50,271,107 | 53,412,884 | 53,412,884 | ||||
| – reserves from profit | 421,633,959 | 384,106,692 | 404,562,643 | 367,862,643 | ||||
| – treasury share reserves | 364,680 | 364,680 | 0 | 0 | ||||
| – treasury shares | -364,680 | -364,680 | 0 | 0 | ||||
| – fair value reserve | 77,834,278 | 89,293,484 | 55,884,634 | 59,402,079 | ||||
| – net profit brought forward | 234,588,994 | 229,284,048 | 50,944,831 | 60,526,536 | ||||
| – net profit/loss for the year | 75,439,847 | 44,131,955 | 36,715,549 | 29,097,639 | ||||
| – currency translation differences | -2,970,993 | -3,140,104 | 0 | 0 | ||||
| Non-controlling interests | 2.1.4 | 2,475,645 | 2,503,373 | 0 | 0 | |||
| Subordinated liabilities | 3.15 | 49,471,831 | 49,423,693 | 49,471,831 | 49,423,693 | |||
| Insurance technical provisions | 3.16 | 2,576,368,384 | 2,523,229,144 | 1,740,373,185 | 1,750,315,382 | |||
| – unearned premiums | 370,043,725 | 344,760,927 | 246,017,849 | 235,190,816 | ||||
| – mathematical provisions | 1,432,613,660 | 1,457,023,963 | 1,008,319,155 | 1,041,557,084 | ||||
| – claims provisions | 694,498,311 | 645,331,168 | 446,567,255 | 430,259,621 | ||||
| – other insurance technical provisions | 79,212,688 | 76,113,086 | 39,468,926 | 43,307,861 | ||||
| Insurance technical provisions for unit-linked insurance contracts | 3.16 | 622,303,399 | 509,984,710 | 540,135,052 | 448,726,097 | |||
| Provisions for employee benefits | 3.19 | 17,672,133 | 17,781,153 | 12,842,304 | 13,073,364 | |||
| Other provisions | 3.20 | 2,512,536 | 2,809,101 | 358,980 | 769,957 | |||
| Deferred tax liabilities | 3.21 | 9,377,034 | 14,539,515 | 4,212,732 | 9,531,162 | |||
| Other financial liabilities | 3.22 | 3,085,647 | 2,895,834 | 1,690,586 | 1,633,896 | |||
| Operating liabilities | 3.24 | 63,341,658 | 70,313,038 | 34,861,554 | 33,977,772 | |||
| – liabilities from direct insurance operations | 19,450,557 | 16,801,856 | 10,182,945 | 10,636,904 | ||||
| – liabilities from reinsurance and co-insurance operations | 41,241,465 | 48,940,738 | 24,678,609 | 19,824,185 | ||||
| – current tax liabilities | 2,649,636 | 4,570,444 | 0 | 3,516,683 | ||||
| Lease liabilities | 3.23 | 11,274,806 | 10,025,532 | 4,643,844 | 3,675,805 | |||
| Other liabilities | 3.25 | 85,959,319 | 68,287,405 | 55,132,093 | 40,387,864 |
in EUR
| Triglav Group | Zavarovalnica Triglav | |||
| Notes | 2021 | 2020 | 2021 | 2020 |
| Net premium income | 1,119,846,051 | 1,066,754,825 | 598,755,000 | 583,867,846 |
| - gross written premium | 1,352,975,550 | 1,233,775,365 | 794,350,103 | 719,255,868 |
| - ceded written premium | -220,949,875 | -160,022,349 | -187,969,749 | -137,934,204 |
| - change in unearned premium reserve | -12,179,624 | -6,998,191 | -7,625,354 | 2,546,182 |
| 4.2 | 1,444,054 | 436,610 | 8,179,885 | 302,643 | |
|---|---|---|---|---|---|
| - profit on equity investments accounted for using the equity method | 1,444,054 | 436,610 | 0 | 0 | |
| - other income from investments in subsidiaries and associates | 0 | 0 | 8,179,885 | 302,643 |
| 4.2 | 155,339,171 | 123,079,449 | 115,612,898 | 89,181,634 | ||
|---|---|---|---|---|---|---|
| - interest income calculated using the effective interest method | 34,281,279 | 42,055,802 | 19,685,884 | 25,933,800 | ||
| - gains on disposals | 16,301,340 | 40,162,889 | 14,888,504 | 37,288,158 | ||
| - other income from investments | 104,756,552 | 40,860,758 | 81,038,510 | 25,959,676 |
| 4.6 | 48,794,300 | 41,006,993 | 45,387,033 | 38,110,029 | ||
|---|---|---|---|---|---|---|
| - fees and commission income | 38,916,088 | 30,649,757 | 38,196,377 | 30,080,891 | ||
| - other income from insurance operations | 9,878,212 | 10,357,236 | 7,190,656 | 8,029,138 |
| 4.7 | 53,334,060 | 43,613,977 | 8,825,846 | 7,872,585 | |
|---|---|---|---|---|---|
| 4.8 | 715,028,788 | 683,631,775 | 365,137,225 | 375,336,947 | ||
|---|---|---|---|---|---|---|
| - gross claims settled | 736,580,050 | 697,443,568 | 408,868,382 | 408,278,140 | ||
| - reinsurers’ share | -44,884,460 | -34,278,930 | -35,818,958 | -31,689,089 | ||
| - changes in claims provisions | 16,152,394 | 12,541,034 | -7,912,199 | -1,252,104 | ||
| - equalisation scheme expenses for supplementary health insurance | 7,180,804 | 7,926,103 | 0 | 0 |
| 4.10 | -2,113,408 | 62,636,590 | -13,989,227 | 13,449,956 |
|---|---|---|---|---|
| 4.10 | 112,661,349 | 25,492,453 | 91,860,583 | 13,270,367 |
|---|---|---|---|---|
| 4.11 | 11,404,143 | 21,350,276 | 10,490,736 | 16,029,498 | |
|---|---|---|---|---|---|
| 4.12 | 266,857,908 | 240,912,735 | 170,334,866 | 155,904,617 | |
|---|---|---|---|---|---|
| - acquisition costs | 184,911,170 | 163,528,966 | 124,268,560 | 113,568,435 | |
| - other operating costs | 81,946,738 | 77,383,769 | 46,066,306 | 42,336,182 |
| 4.3 | 145,632 | 139,422 | 1,087,047 | 3,930,396 |
|---|---|---|---|---|
| - loss on investments accounted for using the equity method | 145,632 | 139,422 | 0 | 0 |
| - other expenses from financial assets and liabilities | 0 | 0 | 1,087,047 | 3,930,396 |
| 4.3 | 31,832,786 | 40,993,211 | 18,366,687 | 25,675,273 | ||
|---|---|---|---|---|---|---|
| - loss on impairment of investments | 33,628 | 1,971,302 | 0 | 1,632,351 | ||
| - loss on disposal of investments | 7,122,739 | 6,941,490 | 6,870,017 | 5,719,183 | ||
| - other expenses from investments | 24,676,419 | 32,080,419 | 11,496,670 | 18,323,739 |
| 4.13 | 51,915,940 | 51,523,388 | 25,298,497 | 24,308,038 |
|---|---|---|---|---|
| 4.14 | 58,379,653 | 57,308,722 | 22,485,637 | 20,359,679 |
|---|---|---|---|---|
| - expenses from financing | 2,729,286 | 2,937,501 | 2,277,892 | 2,578,946 |
| - other expenses | 55,650,367 | 54,371,221 | 20,207,745 | 17,780,733 |
| 132,644,845 | 90,903,282 | 85,688,611 | 71,069,966 | |
|---|---|---|---|---|
| 4.15 | 19,679,152 | 17,238,584 | 12,273,062 | 13,072,327 | |
|---|---|---|---|---|---|
| 112,965,693 | 73,664,698 | 73,415,549 | 57,997,639 | ||
|---|---|---|---|---|---|
| 109 | 4.97 | 3.24 | - | - |
|---|---|---|---|---|
| 112,761,814 | 73,504,373 | - | - | |
|---|---|---|---|---|
| 109 | 203,879 | 160,325 | - | - |
|---|---|---|---|---|
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 Company or the Group.
The Group and the Company do not have dilutive potential ordinary shares, thus the basic and diluted earnings per share are the same.
| in EUR | Triglav Group | Zavarovalnica Triglav | ||||
|---|---|---|---|---|---|---|
| Notes | 2021 | 2020 | 2021 | 2020 | ||
| Net profit for the year after tax | 3.14 | 112,965,693 | 73,664,698 | 73,415,549 | 57,997,639 | |
| Other comprehensive income after tax | -11,437,675 | 4,584,416 | -3,547,037 | 5,525,259 | ||
| Items which will not be transferred in income statement in future periods | 129,024 | -281,989 | 164,711 | -283,076 | ||
| Actuarial gains/losses on defined benefit pension plans | 3.19 | 129,024 | -281,989 | 164,711 | -283,076 | |
| Tax on items which will not be transferred in income statement | 0 | 0 | 0 | 0 | ||
| Items which could be transferred into income statement in future periods | -11,566,699 | 4,866,405 | -3,711,748 | 5,808,335 | ||
| Fair value gains/losses on available-for-sale financial assets | 3.7 | -40,682,514 | 24,484,439 | -32,679,481 | 24,426,078 | |
| – net gains/losses recognized directly in fair value reserve | -19,537,964 | 42,532,142 | -13,562,819 | 40,317,546 | ||
| – transfers from fair value reserve to income statement | -21,144,550 | -18,047,703 | -19,116,662 | -15,891,468 | ||
| Liabilities from insurance contracts with DPF | 23,304,304 | -14,238,050 | 23,304,304 | -14,238,050 | ||
| Currency translation differences | 170,440 | -556,570 | 0 | 0 | ||
| Tax on other comprehensive income | 5,641,071 | -4,823,414 | 5,663,429 | -4,379,693 | ||
| COMPREHENSIVE INCOME OR LOSS FOR THE YEAR AFTER TAX | 101,528,018 | 78,249,114 | 69,868,512 | 63,522,898 | ||
| Controlling interest | 101,458,431 | 78,127,981 | - | - | ||
| Non-controlling interest | 69,587 | 121,133 | - | - |
| Reserves from profit in EUR | Triglav Group | Share capital | Share premium | Contingency reserves | Legal and statutory reserves | Treasury share reserves | Treasury shares | Other reserves |
|---|---|---|---|---|---|---|---|---|
| As at 1 January 2020 | 73,701,392 | 50,276,637 | 640,340 | 19,793,934 | 364,680 | -364,680 | 334,300,000 | 84,099,924 | 165,896,170 | 63,404,824 | -2,587,098 | 789,526,123 | 2,425,665 | 791,951,788 | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Comprehensive income for the year after tax | |||||||||||||||||
| 0 0 0 0 0 0 0 5,193,560 -16,946 73,504,373 -553,006 78,127,981 121,133 78,249,114 | |||||||||||||||||
| a. Net profit | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 73,504,373 | 0 | 73,504,373 | 160,325 | 73,664,698 | ||||
| b. Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,193,560 | -16,946 | 0 | -553,006 | 4,623,608 | -39,192 | 4,584,416 | |||
| Allocation of last year’s net profit to net profit brought forward | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 63,404,824 | -63,404,824 | 0 | 0 | 0 | 0 | ||||
| Allocation of net profit for the year to reserves from profit | 0 | 0 | 0 | 472,418 | 0 | 0 | 28,900,000 | 0 | 0 | -29,372,418 | 0 | 0 | 0 | ||||
| Change in Group | 0 | -5,530 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5,530 | -43,421 | -48,951 | ||||
| As at 31 December 2020 | 73,701,392 | 50,271,107 | 640,340 | 20,266,352 | 364,680 | -364,680 | 363,200,000 | 89,293,484 | 229,284,048 | 44,131,955 | -3,140,104 | 867,648,574 | 2,503,373 | 870,151,947 | |||
| Comprehensive income for the year after tax | |||||||||||||||||
| 0 0 0 0 0 0 0 -11,459,206 -13,289 112,761,814 169,111 101,458,431 69,587 101,528,018 | |||||||||||||||||
| a. Net profit | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 112,761,814 | 0 | 112,761,814 | 203,879 | 112,965,693 | ||||
| b. Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11,459,206 | -13,289 | 0 | 169,111 | -11,303,383 | -134,292 | -11,437,675 | |||
| Dividend payment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -38,608,421 | 0 | 0 | -38,608,421 | 0 | -38,608,421 | ||||
| Allocation of last year’s net profit to net profit brought forward | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 44,131,954 | -44,131,954 | 0 | 0 | 0 | 0 | ||||
| Allocation of net profit for the year to reserves from profit | 0 | 0 | 0 | 487,949 | 0 | 0 | 36,834,020 | 0 | 0 | -37,321,969 | 0 | 0 | 0 | ||||
| Increase in legal and statutory reserves by profit brought forward | 0 | 0 | 0 | 205,298 | 0 | 0 | 0 | -205,298 | 0 | 0 | 0 | 0 | 0 | ||||
| Reclassification from statutory to other reserves from profit | 0 | 0 | 0 | -652,926 | 0 | 0 | 652,926 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Change in Group | 0 | 12,640 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12,640 | -97,315 | -84,675 | ||||
| As at 31 December 2021 | 73,701,392 | 50,283,747 | 640,340 | 20,306,673 | 364,680 | -364,680 | 400,686,946 | 77,834,278 | 234,588,994 | 75,439,847 | -2,970,993 | 930,511,224 | 2,475,645 | 932,986,869 |
| Zavarovalnica Triglav | Share capital | Share premium | Legal and statutory reserves | Other reserves from profit | Fair value reserve | Net profit brought forward | Net profit/loss | Total | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| As at 1 January 2020 | 73,701,392 | 53,412,884 | 4,662,643 | 334,300,000 | 53,859,881 | 9,929,059 | 580,480,275 | ||||
| Comprehensive income for the year after tax | 0 | 0 | 0 | 5,542,198 | -16,939 | 57,997,639 | 63,522,898 | ||||
| a. Net profit | 0 | 0 | 0 | 0 | 0 | 57,997,639 | 57,997,639 | ||||
| b. Other comprehensive income | 0 | 0 | 0 | 0 | 5,542,198 | -16,939 | 0 | 5,525,259 | |||
| Allocation of last year’s net profit to net profit brought forward | 0 | 0 | 0 | 0 | 50,614,416 | -50,614,416 | 0 | ||||
| Allocation of net profit for the year to reserves from profit | 0 | 0 | 28,900,000 | 0 | 0 | -28,900,000 | 0 | ||||
| As at 31 December 2020 | 73,701,392 | 53,412,884 | 4,662,643 | 363,200,000 | 59,402,079 | 60,526,536 | 644,003,173 |
| -3,517,445 | -29,592 | 73,415,549 | 69,868,512 | |||||
|---|---|---|---|---|---|---|---|---|
| a. Net profit | 0 | 0 | 0 | 73,415,549 | 73,415,549 | |||
| b. Other comprehensive income | 0 | 0 | 0 | -3,517,445 | -29,592 | 0 | -3,547,037 | |
| Dividend payment | 0 | 0 | 0 | 0 | -38,649,752 | 0 | -38,649,752 | |
| Allocation of last year’s net profit to net profit brought forward | 0 | 0 | 0 | 0 | 29,097,639 | -29,097,639 | 0 | |
| Allocation of net profit for the year to reserves from profit | 0 | 0 | 36,700,000 | 0 | 0 | -36,700,000 | 0 | |
| As at 31 December 2021 | 73,701,392 | 53,412,884 | 4,662,643 | 399,900,000 | 55,884,634 | 50,944,831 | 36,715,549 | 675,221,933 |
| Triglav Group | Zavarovalnica Triglav | |||
| Notes | 2021 | 2020 | 2021 | 2020 |
| A. OPERATING CASH FLOW | ||||
| a. Net profit for the period | 112,965,693 | 73,664,698 | 73,415,549 | 57,997,639 |
| b. Adjustments: | 63,556,712 | 75,812,482 | 4,209,150 | -2,529,943 |
| – depreciation and amortisation | 23,556,292 | 19,063,160 | 14,336,508 | 13,288,592 |
| – changes in fair value of investments | -73,906,038 | -16,440,324 | -67,375,401 | -21,180,963 |
| – other investment income and expenses | -49,529,610 | -71,130,714 | -36,963,650 | -42,433,628 |
| – interest expenses and other expenses | 2,729,286 | 2,937,501 | 3,508,152 | 2,578,947 |
| – revaluation of other assets | 2,607,602 | 7,348,264 | 1,304,005 | 3,895,575 |
| – changes in technical provisions | 139,060,606 | 116,796,011 | 77,471,473 | 27,693,996 |
| – corporate income tax | 19,038,574 | 17,238,584 | 11,928,063 | 13,627,538 |
| c. Net income before changes in operating assets (a+b) | 176,522,405 | 149,477,180 | 77,624,699 | 55,467,696 |
| Changes in operating receivables | -14,471,407 | 2,544,756 | -2,904,874 | 740,368 |
| Changes in other assets | 2,972,861 | -2,173,717 | -454,701 | -698,003 |
| Changes in liabilities | -9,851,218 | -14,705,181 | -4,224,674 | -4,509,709 |
| Paid corporate income tax | -17,814,509 | -16,087,519 | -16,008,593 | -12,475,023 |
| d. Changes in net operating assets | -39,164,273 | -30,421,661 | -23,592,842 | -16,942,367 |
| e. Net cash from/ (used in) operating activities (c+d) | 137,358,132 | 119,055,519 | 54,031,857 | 38,525,329 |
| B. CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| a. Cash inflows from investing activities | 1,093,015,888 | 1,361,243,567 | 945,312,943 | 1,132,256,197 |
| Cash inflows from interest from investing activities | 37,412,752 | 43,998,453 | 23,440,425 | 28,815,764 |
| Cash inflows from dividends received and profit sharing | 5,653,046 | 5,248,223 | 12,494,301 | 3,801,801 |
| Cash inflows from the disposal of intangible assets | 0 | 132,562 | 0 | 12,562 |
| Cash inflows from the disposal of property, plant and equipment | 3,515,560 | 3,005,255 | 151,349 | 414,273 |
| Cash inflows from the disposal of financial investments | 1,046,434,530 | 1,308,859,074 | 909,226,868 | 1,099,211,797 |
| - Cash inflows from the disposal of investments in subsidiaries and associates | 0 | 0 | 0 | 0 |
| - Other cash inflows from disposal of financial investments | 1,046,434,530 | 1,308,859,074 | 909,226,868 | 1,099,211,797 |
| b. Cash outflows from investing activities | -1,186,871,319 | -1,445,191,950 | -965,578,127 | -1,149,365,270 |
| Cash outflows for the purchase of intangible assets | -7,877,065 | -9,126,252 | -6,931,001 | -7,711,934 |
| Cash outflows for the purchase of property, plant and equipment | -9,507,447 | -13,601,854 | -3,365,839 | -7,310,866 |
| Cash outflows for the purchase of financial investments | -1,169,486,807 | -1,422,463,844 | -955,281,287 | -1,134,342,470 |
| - Cash outflows for the purchase of investments in subsidiaries and associates | -4,465,325 | -14,948,951 | -7,039,617 | -14,900,000 |
| - Other cash outflows to acquire financial investments | -1,165,021,482 | -1,407,514,893 | -948,241,670 | -1,119,442,470 |
| c. Net cash from/ (used in) investing activities (a + b) | -93,855,431 | -83,948,383 | -20,265,184 | -17,109,073 |
| C. CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| a. Cash inflows from financing activities | 0 | 0 | 0 | 0 |
| b. Cash outflows from financing activities | -43,097,819 | -29,035,063 | -42,157,904 | -25,224,146 |
| Cash outflows for paid interest | -2,458,714 | -3,982,947 | -2,343,302 | -3,513,302 |
| Cash outflows for payments of long-term financial liabilities | 0 | -21,620,132 | 0 | -20,628,000 |
| Cash outflows for payments of short-term financial liabilities | -2,030,685 | -3,431,984 | -1,164,850 | -1,082,844 |
| Cash outflows from dividends paid | -38,608,420 | 0 | -38,649,752 | 0 |
| c. Net cash from/ (used in) financing activities (a + b) | -43,097,819 | -29,035,063 | -42,157,904 | -25,224,146 |
| D. Closing balance of cash and cash equivalents | 82,321,630 | 81,899,664 | 13,912,991 | 22,304,222 |
| E1. Net cash flow for the period | 404,882 | 6,072,073 | -8,391,231 | -3,807,890 |
| E2. Foreign exchange differences | 17,084 | -42,184 | 0 | 0 |
| F. Opening balance of cash and cash equivalents | 81,899,664 | 75,869,775 | 22,304,222 | 26,112,112 |
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 2021 were:
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 2021, the Management Board was composed of:
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.
The Management Board approved the audited annual report for the financial year ended 31 December 2021 on 10 March 2022. The annual report is published on the Company’s website www.triglav.eu.
In 2021, the Group employed an average of 5,281 employees (2020: 5,259), of which 2,243 were employees of Zavarovalnica Triglav (2020: 2,245).
As at 31 December 2021, the Group employed 5,246 employees (31 December 2020: 5,316), of which 2,246 were employees of Zavarovalnica Triglav (31 December 2020: 2,244).
The number of employees within the Group and at Zavarovalnica Triglav based on their level of education is shown in the table below.
| Education level | Triglav Group | Zavarovalnica Triglav | ||||
|---|---|---|---|---|---|---|
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |||
| 2-5 | 2,226 | 2,316 | 803 | 819 | ||
| 6/1 | 534 | 556 | 379 | 389 | ||
| 6/2 | 781 | 749 | 438 | 426 | ||
| 7 | 1,491 | 1,476 | 528 | 516 | ||
| 8/1 | 211 | 198 | 90 | 86 | ||
| 8/2 | 21 | 21 | 8 | 8 | ||
| TOTAL | 5,264 | 5,316 | 2,246 | 2,244 |
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.
Insurance is the core business of the Group, including asset management, support activities and other services. The Triglav Group is the leading insurance and financial group in Slovenia and the Adriatic region as well as one of the leading groups in South-East Europe.
| EQUITY TAKE (in %) | SHARE OF VOTING RIGHTS |
|---|---|
| CO M PA N Y | ADDRESS | TAX R AT E (i n %) | ACT IVI T Y | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|---|---|---|
| Pozavarovalnica Triglav RE, d.d. | Miklošičeva cesta 19, Ljubljana, Slovenia | 19 | Reinsurance | 100.00 | 100.00 | 100.00 | |
| Triglav, Zdravstvena zavarovalnica, d.d. | Pristaniška ulica 10, Koper, Slovenia | 19 | Insurance | 100.00 | 100.00 | 100.00 | 100.00 |
| Triglav Osiguranje, d.d., Zagreb | Antuna Heinza 4, Zagreb, Croatia | 18 | Insurance | 100.00 | 100.00 | 100.00 | |
| Triglav Osiguranje, d.d., Sarajevo | Dolina 8, Sarajevo, Bosnia and Herzegovina | 10 | Insurance | 97.78 | 98.87 | ||
| Lovćen Osiguranje, a.d., Podgorica | Ulica slobode 13a, Podgorica, Montenegro | 9 | Insurance | 99.07 | 99.07 | 99.07 | 99.07 |
| Lovćen životna osiguranje, a.d., Podgorica | Ulica Marka Miljanova 29/II, Podgorica, Montenegro | 9 | Insurance | 99.07 | 99.07 | 99.07 | |
| Triglav Osiguranje, a.d.o., Beograd | Milutina Milankovića 7a, Novi Beograd, Serbia | 15 | Insurance | 100.00 | 99.88 | 100.00 | 99.88 |
| Triglav Osiguranje, a.d., Banja Luka | Ulica Prvog krajiškog korpusa 29, Banja Luka, Bosnia and Herzegovina | Insurance | 100.00 | 100.00 | 100.00 | 100.00 | |
| Triglav Osiguruvanje, a.d., Skopje | Bulevar 8-mi Septemvri 16, Skopje, North Macedonia | 10 | Insurance | 81.32 | 81.32 | 80.83 | |
| Triglav Osiguruvanje Život, a.d., Skopje | Bulevar 8-mi Septemvri 18, Skopje, North Macedonia | 10 | Insurance | 96.26 | 96.26 | 96.17 | |
| Triglav pensijsko društvo, a.d., Skopje | Bulevar 8-mi septemvri 18, kat 2, Skopje, North Macedonia | 10 | Fund management | 100.00 | 100.00 | 100.00 | 100.00 |
| Triglav, pokojninska družba, d.d. | Dunajska cesta 22, Ljubljana, Slovenia | 19 | Fund management | 100.00 | 100.00 | 100.00 | |
| Triglav INT, d.o.o. | Dunajska cesta 22, Ljubljana, Slovenia | 19 | Holding company | 100.00 | 100.00 | 100.00 | |
| Triglav skladi, d.o.o. | Slovenska cesta 54, Ljubljana, Slovenia | 19 | Fund management | 100.00 | 67.50 | 100.00 | |
| Triglav Avtoservis, d.o.o. | Verovškova 60b, Ljubljana, Slovenia | 19 | Maintenance and repair of motor vehicles | 100.00 | 100.00 | 100.00 | 100.00 |
| Triglav Svetovanje, d.o.o. | Ljubljanska cesta 86, Domžale, Slovenia | 19 | Insurance agency | 100.00 | 100.00 | 100.00 | |
| Triglav Upravljanje nepremičnin, d.o.o. | Dunajska cesta 22, Ljubljana, Slovenia | 19 | Real estate management | 100.00 | 100.00 | 100.00 | 100.00 |
| Triglav Savjetovanje, d.o.o., Sarajevo | Dolina br. 8, Sarajevo, Bosnia and Herzegovina | 10 | Insurance agency | 97.78 | 98.91 | 97.78 | 98.91 |
| Triglav Savjetovanje, d.o.o., Zagreb | Sarajevska cesta 60, Zagreb, Croatia | 18 | Insurance | 100.00 | 100.00 | 100.00 | 100.00 |
| Triglav Savjetovanje, d.o.o., Beograd | Zelengorska 1g, Novi Beograd, Serbia | 15 | Insurance agency | 100.00 | 100.00 | 99.94 | |
| Auto centar BH, d.o.o. | Džemala Bijedića 165b, Sarajevo, Bosnia and Herzegovina | 10 | Maintenance and repair of motor vehicles | 97.78 | 97.78 | 98.87 | |
| Sarajevostan, d.o.o. | Džemala Bijedića br. 147, Sarajevo, Bosnia and Herzegovina | 10 | Real estate management | 90.95 | 90.95 | 91.97 | |
| Lovćen auto, d.o.o., Podgorica | Novaka Miloševa 6/2, Podgorica, Montenegro | 9 | 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 | 100.00 | 100.00 | 100.00 | |
| Triglav upravljanje nekretninama, d.o.o., Podgorica | Džorđa Vašingtona 44, Podgorica, Montenegro | 9 | Real estate management | 100.00 | 100.00 | 100.00 | 100.00 |
| Triglav upravljanje nekretninama, d.o.o., Sarajevo | Dolina 8, Sarajevo, Bosnia in Hercegovina | 10 | Real estate management | 97.78 | 97.78 | - | |
| PROF-IN, d.o.o. | Mehmed paše Sokolovića 15, Sarajevo, Bosnia and Herzegovina | 10 | Fund management | 62.54 | 62.54 | 62.54 | |
| Zavod Vse bo v redu | Miklošičeva cesta 19, Ljubljana, Slovenia | 19 | Institute for corporate social responsibility | 100.00 | 100.00 | 100.00 | 100.00 |
Triglav Group subsidiaries
| COMPANY | ASSETS 2021 | ASSETS 2020 | LIABILITIES 2021 | LIABILITIES 2020 | EQUITY 2021 | EQUITY 2020 | INCOME 2021 | INCOME 2020 | NET PROFIT/LOSS 2021 | NET PROFIT/LOSS 2020 |
|---|---|---|---|---|---|---|---|---|---|---|
| Pozavarovalnica Triglav Re, d.d., Ljubljana | 362,467,179 | 348,003,015 | 266,915,458 | 260,960,886 | 95,551,721 | 87,042,129 | 228,079,978 | 201,204,085 | 11,324,430 | 2,817,983 |
| Triglav, Zdravstvena zavarovalnica, d.d., Koper | 111,448,859 | 96,772,481 | 65,812,869 | 56,280,962 | 45,635,990 | 40,491,519 | 200,703,434 | 197,952,289 | 6,379,174 | 4,845,316 |
| Triglav Osiguranje, d.d., Zagreb | 196,173,329 | 185,916,419 | 166,478,465 | 156,973,195 | 29,694,864 | 28,943,224 | 96,269,515 | 79,836,402 | 1,820,083 | -2,582,560 |
| Triglav Osiguranje, d.d., Sarajevo | 76,491,259 | 64,990,550 | 56,377,177 | 45,763,838 | 20,114,082 | 19,226,712 | 36,219,946 | 30,995,575 | 1,296,180 | 1,280,528 |
| Lovćen Osiguranje, a.d., Podgorica | 52,424,790 | 52,202,701 | 39,286,519 | 39,584,520 | 13,138,271 | 12,618,181 | 37,677,417 | 36,321,508 | 1,308,164 | 3,936,476 |
| Lovćen životna osiguranje, a.d., Podgorica | 8,180,680 | 8,021,088 | 4,191,088 | 4,068,819 | 3,989,592 | 3,952,269 | 4,935,706 | 4,583,354 | 256,415 | 495,360 |
| Triglav Osiguranje, a.d.o., Beograd | 101,307,828 | 87,549,739 | 74,849,135 | 62,774,853 | 26,458,693 | 24,774,894 | 79,849,221 | 67,527,013 | 3,585,281 | 4,065,469 |
| Triglav Osiguranje, a.d., Banja Luka | 13,102,599 | 12,783,723 | 8,859,000 | 8,179,548 | 4,243,599 | 4,604,175 | 6,625,994 | 6,725,800 | -302,774 | 85,342 |
| Triglav Osiguruvanje, a.d., Skopje | 49,525,142 | 47,506,299 | 32,843,926 | 31,668,440 | 16,681,216 | 15,837,859 | 24,135,021 | 22,282,221 | 482,192 | 1,199,617 |
| Triglav Osiguruvanje Život, a.d., Skopje | 7,907,892 | 6,090,499 | 3,649,158 | 1,843,075 | 4,258,734 | 4,247,424 | 3,409,223 | 1,200,013 | -86,155 | -428,683 |
| Triglav penzisko društvo, a.d., Skopje | 1,738,046 | 2,399,923 | 184,087 | 233,167 | 1,553,959 | 2,166,756 | 308,458 | 156,889 | -623,974 | -513,592 |
| Triglav, pokojninska družba, d.d., Ljubljana | 416,477,600 | 389,872,637 | 397,380,084 | 372,104,664 | 19,097,516 | 17,767,973 | 57,784,500 | 53,881,938 | 1,597,670 | 524,523 |
| Triglav INT, d.o.o., Ljubljana | 71,128,059 | 72,416,802 | 33,581 | 69,218 | 71,094,478 | 72,347,584 | 69 | 18,324 | -1,253,106 | -940,601 |
| Triglav Skladi, d.o.o., Ljubljana | 86,248,279 | 71,631,070 | 11,071,037 | 9,073,843 | 75,177,242 | 62,557,227 | 30,728,566 | 25,652,463 | 8,246,729 | 5,306,938 |
| Triglav Avtoservis, d.o.o., Ljubljana | 1,298,820 | 783,446 | 1,168,153 | 851,454 | 130,667 | -68,008 | 2,508,476 | 2,266,678 | 1,967 | -133,613 |
| Triglav Sve tovanje, d.o.o., Ljubljana | 1,807,856 | 1,762,584 | 1,495,117 | 1,253,084 | 312,739 | 509,500 | 4,880,110 | 4,792,860 | -209,070 | 23,363 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Triglav, Upravljanje nepremičnin, d.o.o., Ljubljana | 32,393,981 | 39,371,023 | 3,296,282 | 2,565,104 | 29,097,699 | 36,805,919 | 3,740,839 | 4,488,485 | 288,055 | 481,717 | ||||
| Triglav Savjetovanje, d.o.o., Sarajevo | 341,689 | 339,949 | 338,995 | 272,077 | 2,694 | 67,872 | 700,024 | 729,177 | -65,178 | -13,530 | ||||
| Triglav Savjetovanje, d.o.o., Zagreb | 236,485 | 105,274 | 146,759 | 203,597 | 89,726 | -98,323 | 577,291 | 424,803 | 42,090 | -47,450 | ||||
| Triglav Savjetovanje, d.o.o., Beograd | 137,944 | 185,021 | 128,612 | 216,076 | 9,332 | -31,055 | 698,454 | 568,429 | -26,889 | -56,109 | ||||
| Auto centar BH, d.o.o., Sarajevo | 2,775,450 | 2,923,168 | 763,557 | 923,228 | 2,011,893 | 1,999,940 | 1,720,885 | 1,722,665 | 63,082 | 91,263 | ||||
| Sarajevostan, d.o.o., Sarajevo | 1,624,805 | 2,568,709 | 666,977 | 2,410,987 | 957,828 | 157,722 | 2,855,026 | 2,138,645 | 800,106 | -1,460,157 | ||||
| Lovćen auto, d.o.o., Podgorica | 4,907,430 | 5,312,445 | 1,616,923 | 2,293,854 | 3,290,507 | 3,018,591 | 1,856,714 | 1,667,433 | -428,084 | -581,928 | ||||
| Triglav upravljanje nekretninama, d.o.o., Zagreb | 460,737 | 1,503,845 | 2,719 | 3,228 | 458,018 | 1,500,617 | 112,772 | 70,779 | -51,835 | -6,000 | ||||
| Triglav upravljanje nekretninama, d.o.o., Podgorica | 1,923,394 | 1,926,982 | 210,583 | 103,603 | 1,712,811 | 1,823,379 | 32,706 | 222,994 | -110,568 | 29,243 | ||||
| Triglav upravljanje nekretninama, d.o.o., Sarajevo | 15,339 | - | 0 | - | 15,339 | - | 0 | - | 0 | - | ||||
| PROF-IN, d.o.o., Banja Luka | 4,989,348 | 4,400,215 | 34,847 | 6,258 | 4,954,501 | 4,393,957 | 1,046,677 | 766,902 | 560,544 | 286,602 | ||||
| Zavod Vse bo v redu | 148,057 | 97,017 | 1,769 | 569 | 100,000 | 100,000 | 113,000 | 29,301 | 49,840 | -30,355 |
| COMPANY | 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) | ||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| Triglav Osiguranje, d.d., Sarajevo | 2.22 | 2.22 | 1.13 | 1.13 | 27,640 | 29,768 | 280,040 | 261,476 |
| Triglav Osiguranje, a.d.o., Beograd | - | 0.12 | - | 0.12 | -4,919 | -210,112 | - | - |
| Triglav Osiguruvanje, a.d., Skopje | 18.68 | 19.17 | 18.68 | 19.17 | 90,054 | 229,986 | 1,955,469 | 1,871,646 |
| Lovćen Osiguranje, a.d., Podgorica | 0.93 | 0.93 | 0.93 | 0.93 | 18,676 | 43,119 | 498,487 | 487,141 |
| Lovćen životna osiguranje, a.d., Podgorica | 0.93 | 0.93 | 0.93 | 0.93 | 2,385 | 4,607 | 83,600 | 83,254 |
| Triglav Savjetovanje, d.o.o., Sarajevo | 2.22 | 1.09 | 2.22 | 1.09 | -1,447 | -147 | -19,622 | -16,901 |
| Auto centar BH, d.o.o., Sarajevo | 2.22 | 2.22 | 2.22 | 1.13 | 1,400 | 2,026 | -142,790 | -144,190 |
| Lovćen auto, d.o.o., Podgorica | 0.93 | 0.93 | 0.93 | 0.93 | -3,982 | -5,412 | -399,483 | -395,500 |
| Triglav Osiguruvanje Život, a.d., Skopje | 3.74 | 3.83 | 3.74 | 3.83 | -3,218 | -16,436 | -26,610 | -27,674 |
| Saraj evostan, d.o.o. | Sara jevo | 9.05 | 9.05 | 9.05 | 8.03 | 72,370 | -132,072 | 246,555 | 174,185 |
|---|---|---|---|---|---|---|---|---|---|
| Triglav S aveto vanje, d.o.o. | B eo grad | -0.06 | -0.06 | - | -33 | - | -173 | ||
| T O T A L | 203,878 | 160,325 | 2,475,645 | 2,503,377 |
The only company in the Group that has a significant non-controlling interest is Triglav O siguruvanje a.d., Skopje. Its key financial information is presented below.
| 31 December 2021 | 31 December 2020 | |
|---|---|---|
| Current assets | 7,286,521 | 6,139,945 |
| Current liabilities | 3,001,242 | 2,420,552 |
| Net current assets/liabilities | 4,285,279 | 3,719,393 |
| Non-current assets | 42,238,621 | 41,366,354 |
| Non-current liabilities | 29,842,684 | 29,247,888 |
| Net non-current assets/liabilities | 12,395,937 | 12,118,466 |
| Net assets | 16,681,216 | 15,837,859 |
| 2021 | 2020 | |
|---|---|---|
| Cash flows from operating activities | 336,580 | -880,935 |
| Cash flows from investing activities | -143,442 | 811,387 |
| Cash flows from financing activities | 20,280 | 0 |
| Net change in cash flows | 213,418 | -69,548 |
| 2021 | 2020 | |
|---|---|---|
| Net profit or loss for the year | 482,192 | 1,199,617 |
| Other comprehensive income | 361,165 | -104,934 |
| Total comprehensive income | 843,357 | 1,094,683 |
Capital increase of ZTSR d.o.o and its merger with Diagnostični center Bled d.o.o.
Through the in-cash contribution of EUR 3.3 million, Zavarovalnica Triglav increased the capital of jointly controlled ZTSR d.o.o. in the first quarter of 2021, thereby maintaining its 50% participating interest in said company.
The in-cash contribution of EUR 1.25 million, Zavaro valnica Triglav increased the capital of Diagnostični center Bled d.o.o. in the last quarter of 2021, thereby maintaining its 50% participating interest in said company.
Diagnostični center Bled d.o.o. increased its strategic investment portfolio by acquiring a 100% participating interest in Kirurški sanatorij d.o.o. in the first quarter of 2021. From the Group’s point of view, this investment is part of regular activities of managing its extensive investment portfolio and has no significant impact on its composition. Kirurški sanatorij is treated within the Group as part of Diagnostični center Bled Group.
Zavaro valnica Triglav made two subsequent capital contributions in the total amount of EUR 2.3 million to its associate in 2021, thus remaining a 49.9% owner of said company. The capital increase had no effect on the Group’s consolidated financial statements.
Lovćen Osiguranje a.d., Podgorica increased the capital of its subsidiary Lovćen auto d.o.o., Podgorica in 2021 through in-cash contributions in the total amount of EUR 700 thousand. The ownership structure of Lovćen auto d.o.o. was not changed with said capital increase, as Lovćen Osiguranje a.d. remained its 100% owner. The capital increase had no impact on the Group’s consolidated financial statements.
Zavaro valnica Triglav d.d. made two subsequent capital contributions in the total amount of EUR 194 thousand to its subsidiary in 2021, thus remaining a 100% owner of said company. The capital increase had no effect on the Group’s consolidated financial statements.
Triglav Savjetovanje d.o.o. and Triglav Osiguranje d.d., Zagreb increased the capital of their subsidiary Triglav Savjetovanje d.o.o., Zagreb proportional to their participating interests. The capital increase was raised by in-cash contributions of HRK 1.1 million or EUR 145 thousand. As a result, the two companies retained their participating interests in said company of 51% and 49% respectively.
Triglav Savjetovanje d.o.o. and Triglav Osiguranje a.d.o, Belgrade increased the capital of their subsidiary Triglav Savjetovanje d.o.o., Belgrade proportional to their participating interests. The capital increase was raised by in-cash contributions of RSD 7.9 million or EUR 67 thousand. As a result, the two companies retained their participating interests in said company of 51% and 49% respectively.
Triglav INT d.o.o., Ljubljana acquired a 0.50% participating interest from the non-controlling interest holders of Triglav Osiguruvanje a.d., Skopje, thereby becoming its 81.32% owner. The consideration totaled MAK 3.2 million or EUR 52 thousand. The effect of the acquisition of the non-controlling interest was recognised in the consolidated financial statements as an increase in share premium of EUR 20 thousand.
Triglav INT d.o.o., Ljubljana acquired a 0.12% participating interest from non-controlling interest holders of Triglav Osiguruvanje a.d., Belgrade, thereby becoming its 100% owner. The consideration totaled RSD 3.7 million or EUR 33 thousand. The effect of the acquisition of the non-controlling interest was recognised in the consolidated financial statements as a decrease in share premium of EUR 8 thousand.
Triglav Svetovanje d.o.o., Domžale sold its 51% participating interest in Triglav Savjetovanje d.o.o., Sarajevo to Triglav Osiguranje d.d., Sarajevo. As a result, Triglav Osiguranje d.d., Sarajevo became a 100% owner of Triglav Savjetovanje d.o.o., Sarajevo. Due to the transfer of the participating interest, the Triglav Group’s participating interest in said company decreased by 1.13 percentage points.
With the in-cash contribution of BAM 30 thousand or EUR 15 thousand, Triglav Osiguranje d.d., Sarajevo established Triglav, upravljanje nekretninama d.o.o., Sarajevo, thereby becoming its 100% owner.
Based on its strategic plans, Zavarovalnica Triglav’s associate Nama d.d., Ljubljana carried out a spin-off of its retail business and transferred it to its newly established subsidiary Nama IN d.o.o., Ljubljana. This transaction did not have an impact on the Group’s consolidated financial statements. In the Group’s consolidated financial statements, Nama d.d. is treated as an associate and valued under the equity method based on its consolidated financial statements.
The Group’s consolidated financial statements and the Company’s separate financial statements for the financial year ended 31 December 2021 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 (Zavar-1) and its implementing regulations.
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 basis, except in the case of financial assets recognised at fair value through profit or loss and available-for-sale financial assets measured at fair value.
The accounting policies used in the compilation of the financial statements are consistent with those of the financial statements for the comparable period.
The financial year is the same as the calendar year.
When preparing the financial statements, an assessment was made of the ability of both the Group and the Company to continue as a going concern due to the COVID-19 epidemic. The sensitivity of the Group’s and the Company’s profitability, financial position and liquidity under significant assumptions or uncertainties in the environment is described in the section on risk management (Section 2.9 Future risks as a result of the pandemic). Based on all the calculations presented, it can be confirmed that the going concern assumption is appropriate. The impact of the COVID-19 epidemic on individual items in the financial statements is presented in Section 2.7.2.
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.
Zavarovalnica Triglav controls a company if all the following three elements of control are met:
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 effects 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 income statement being recognised as profit 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 significant from the point of view of consolidated financial statements, 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 effects of other transactions within the Group are also eliminated in full.
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.
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.
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.
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. Exchange rate differences arising from the settlement of these transactions or from the translation of monetary items are recognised in profit or loss.
Foreign rate differences arising from changes in the amortised cost of monetary items denominated in foreign currency and classified as available-for-sale financial assets 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. Foreign rate differences from non-monetary items, such as equity instruments classified as available-for-sale financial assets, are recognised together with the effects of measurement at fair value in other comprehensive income and accumulated in equity.
The financial statements of Group companies that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
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 income statement as part of gains or losses on sale.
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 as described in Section 2.3.
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 Triglav Group and a contract partner based on a contractual agreement.
Investments in equity instruments of associates and joint ventures are accounted for in the separate financial statements at fair value. For associates whose values are not published on a stock exchange, a valuation model is used (guideline public company method, comparable transaction analysis, discounted cash flows, contract value). The effects of valuation at fair value are disclosed in other comprehensive income.
In the Group’s consolidated financial statements, investments in associates and joint ventures are accounted for using 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 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, the Group carries out impairment up to the level of the recoverable amount.
The corresponding share of an associate’s and joint venture’s profit or loss is recognised in the consolidated profit or loss. The corresponding effects included in other comprehensive income of an associate or joint venture are recognised in the consolidated statement of comprehensive income.
The acquisition method is used for business combinations. 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 fair value of the company’s acquired assets. 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.
Accounting policies for the assessment of impairment of goodwill and investments in subsidiaries are presented in Section 2.5.4.7, and accounting policies for determining the fair value of associates and joint ventures in Section 2.5.13.
The products of the Group’s insurance companies are classified into homogeneous groups according to the features of individual products: non-life insurance, traditional life insurance, pension insurance and unit-linked life insurance. Products can contain either an underwriting risk or both an underwriting and financial risk.
Contracts of an individual homogeneous group are defined as insurance if they contain material underwriting risk. Such insurance contracts are accounted for in accordance with IFRS 4. If the contracts contain a material financial risk, they are classified as financial and accounted for in accordance with IAS 39.
The materiality of underwriting risk is determined in relation to additional benefits in the case of a loss event. The significance of additional benefits is assessed by comparing the maximum difference between the economic value of the payout after a loss event and the payout in other cases. This difference must be at least 10% of the payout amount at the inception date of the insurance policy.
All non-life insurance, traditional life insurance and unit-linked life insurance contracts contain material underwriting risk and are therefore defined as insurance contracts. The same applies to all pension insurance contracts. In some pension insurance contracts, the base for determining the amount of pension annuity is already set at the time of concluding the contract, while most remaining insurance contracts provide additional benefits above the amount of accumulated assets in the case of death of the policyholder during the accumulation period. In addition, all pension insurance contracts also contain a discretionary right to profit participation. These contracts enable the policyholder, under certain terms and conditions determined by the Company, the payment of additional coverage, which is linked to the return on assets of the guarantee fund, and are therefore also defined as insurance contracts according to this criterion.
Once an insurance contract is defined as an insurance contract, it remains so until its expiry, even if during its term the underwriting risk is significantly reduced, unless all rights and obligations are terminated or expire.
Net premium income is calculated based on gross written premium and gross outward (co)reinsurance premium, reduced by (co)reinsurers’ and retrocessionaires’ share and adjusted by the change in gross unearned premium taking into account the (co)reinsurers’ and retrocessionaires’ share in unearned premium. Written premium is the basis for recognising gross premium.
Other insurance income includes fee and commission income (asset management fees, (co)reinsurance and other fees and commissions) and other income from insurance operations (green card sales, claims settled on behalf of other insurance companies, assistance services and other).
Net claims incurred are gross claims paid (claim payments and claim handling expenses), reduced by income from collected subrogation receivables and the reinsurance portion and adjusted by the change in gross claims provisions taking into account the reinsurers’ share in these provisions. Claim handling expenses comprise external and internal costs of assessing the eligibility and amount of claims, including legal expenses, expert fees and subrogation recovery expenses. Gross claims paid are recognised in profit or loss once the claims are settled.
Other insurance expenses include fee and commission expenses, expenses from impairment of receivables, re protection tax, prevention expenses and other insurance expenses. Other insurance expenses are recognised in profit or loss once a service is provided.
These policies include credit insurance at which the insurance cover decreases and construction and erection insurance at which the insurance cover increases. For such type of insurance, the calculation of unearned premium is based on the assumption of a constant claim frequency throughout the term of the contract and a variable insurance cover.
Provisions for unexpired risk are formed for insurance policies where, based on past experience, it is assumed that the amount of unearned premium will not suffice for covering all future claims, i.e. for those insurance classes for which the claims ratio exceeds 100%. Additional provisions for unexpired risks are calculated in the share of unearned premium, which represents the difference between the value of the expected claims ratio and 100%.
Additional tests are performed to check the adequacy of the provisions for unearned premium and unexpired risks. The amounts of future gross claims and gross future expenses are taken into account in these tests and compared with the amount of established provisions for unearned premium reduced by deferred acquisition costs.
Claims provisions are made to cover claims incurred but not settled by the end of the accounting period. Claims provisions are formed for claims reported, not reported and not enough reported. Claims provisions are calculated as the sum of incurred and reported claims and incurred but not reported claims (IBNR). Provisions for incurred and reported claims are based on an inventory of claims. The majority of provisions for IBNR claims are calculated using the run-off triangular method, taking into account the combination of the chain ladder method and the Bornhuetter-Ferguson method. The basis for the calculation is a sample of past claims experience with projected future trends. For this purpose, a multi-year time series of settled claims is used.
Previous experience shows that claims from major CAT events, such as hail, floods and storms, are reported with a delay. None of the standard actuarial methods for determining the amount of IBNR claims after major CAT events is suitable for their valuation. Such claims can represent a significant portion of total IBNR claims; therefore, in order to ensure an up-to-date calculation of the actual amount of claims following major CAT events, an additional provision is made for IBNR and incurred but not enough reported (IBNER) claims separately for each major CAT event.
If in liability insurance a claim is settled as an annuity, the amount is reserved as a capitalised value of annuity calculated based on the Slovenian SIA65 mortality tables and a 0.50% interest rate. Other insurance subsidiaries use local mortality tables. Depending on the possibilities, additional claims provisions are made for not enough reported annuity claims when the injured party is a minor or a young person and the insurance company may reasonably expect that the injured party will also lead a claim for loss of income when reaching a certain age.
With the exception of annuity claims, claims provisions are not discounted. The adequacy of the claims provisions made is reviewed quarterly. A claims provision is formed based on statistical data and using actuarial methods. As such, it in itself is a test of the adequacy of claims provisions.
In the context of testing the adequacy of claims provisions, the liability adequacy test (LAT) is carried out for liabilities paid out as annuities. Mortality, indexation and discount interest rate assumptions are used to calculate the adequacy of the claims provisions paid out as annuities.
Mathematical provisions for life, annuity, pension and unit-linked insurance portfolio are calculated separately for each insurance contract. The valuation of life and annuity insurance liabilities is carried out by using the modified prospective net premium method, taking into account acquisition costs, including all contractual obligations and bonuses. The insurance technical parameters taken into account by the method either match the parameters used in the calculation of insurance premium or are adjusted for those subsequently changed circumstances that increase the amount of liabilities. This is particularly the case for annuity insurance where the calculation of liabilities takes into account own, more conservative mortality tables and a carefully set (lower) interest rate.
The method takes into account all premiums paid up to the valuation date, entry fees, sums paid out, bonuses from the guaranteed interest rate and bonuses credited to personal accounts from profit participation. During the pension annuity payout period, provisions are set aside based on the present value of estimated future liabilities (the prospective net method). The insurance technical parameters taken into account in the calculation are either the same as those set at the time of underwriting the policy or adjusted to the circumstances expected during the pension payout, if these circumstances are worse than those taken into account in the premium calculation.
The mathematical provisions for supplemental voluntary pension insurance are built up over the accumulation period using the retrospective method. In calculating the provisions, this method takes into account all premiums paid up to the valuation date, entry fees, sums paid out, bonuses from the return on the guarantee fund, the guaranteed return from funds with a guaranteed return and bonuses credited to personal accounts from profit participation. During the pension annuity payout period, provisions are set aside based on the present value of estimated future liabilities (the prospective net method). The insurance technical parameters taken into account in the calculation either match the parameters set at the time of underwriting the policy or are adjusted for those subsequently changed circumstances that increase the amount of liabilities, particularly in the valuation of liabilities during the pension payout period.
Additional provisions are made to cover contractually defined risks of payouts under the primary or complementary insurance policies and additional insurance technical provisions for credit risks.
All calculations take into account actuarial assumptions, applicable legal provisions and all contractual liabilities to policyholders arising from insurance policies and the respective insurance terms and conditions.
The mathematical provisions also take into account bonuses attributed to policyholders in previous financial years in accordance with the rights set out in the underlying insurance contracts.
Fair value reserve for available-for-sale financial assets is also recognised in the context of mathematical provisions. The principle of shadow accounting is applied. In relation to available-for-sale financial instruments, fair value reserve is accounted for in other comprehensive income upon recognition; on the balance sheet date, the transfer to mathematical provisions is made for the portion that will be due to the policyholders upon realisation in line with the provisions of the insurance contract or internal regulations.
The LAT is carried out annually both in the Group and the Company. The purpose of the LAT is to verify the adequacy of life insurance provisions. The test is performed by comparing the amount of provisions made with the best estimate of provisions determined by taking into account the present value of the best estimate of future expected contractual and other cash flows. The calculation is performed at the level of each insurance contract and the results are aggregated into appropriate homogeneous insurance groups. The test is based on a uniform methodology that determines, among others, the method of creating homogeneous groups, the selection of risk-free interest rate curves and the scope of cash flows considered. The test is carried out based on the portfolio balance as at the last day of the financial year.
Insurance contracts are classified into several homogenous groups subject to approximately the same risks and managed within the same portfolio. Homogeneous groups are formed according to insurance classes as follows:
The cash-generating unit or insurance company is also considered a homogenous group. Any deficit is determined at the level of an individual insurance company and recognised in the financial statements as an increase in provisions and an expense in profit or loss.
Mortality, longevity and morbidity assumptions, assumptions about portfolio persistency, assumptions about costs, increases in insurance premium, expected returns and discount interest rates, profit participation and an annuity factor guarantees are included in the LAT. If the LAT shows that the provisions are insufficient, additional provisions will be charged to the profit or loss.
Provisions for bonuses in non-life insurance are formed for the part of the premium that will be reimbursed to those persons insured who meet the criteria set out in insurance terms and conditions (total claims ratio over the last three years, premium payment discipline and the amount of total premium). Based on an annual analysis and predefined criteria, the amount of premium reimbursement is calculated.
Provisions for cancellations represent that portion of unearned premium which is expected to be reimbursed in the event of early termination and for which deferred acquisition costs were made.
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.
Financial investments are classified into the following groups: financial assets measured at fair value through profit or loss, held-to-maturity financial assets, loans and deposits, and available-for-sale financial assets. Classification depends on the initial purpose for which an investment was acquired. The management decides on the classification of investments at initial recognition.
At initial recognition, financial investments 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 asset. This does not apply to financial investments classified as assets 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 investment, except for loans and deposits where the settlement date is used.
Available-for-sale financial assets are those non-derivative financial assets that are classified as available for sale or not classified as loans and deposits, held-to-maturity financial investments or financial assets recognised at fair value through profit or loss.
After initial recognition, available-for-sale financial assets are measured at fair value, without deducting transaction costs that may occur when selling or otherwise disposing them. Financial instruments not listed on a stock exchange are measured at fair value based on recent transaction prices if the market situation has not changed significantly since the last transaction, or using the discounted expected cash flow valuation model. Equity instruments not quoted in an active market and for which fair value cannot be reliably measured are measured at cost. The method of determining the fair value of available-for-sale financial assets is described in more detail in Section 2.5.13.
decrease (loss) in fair value reserve, except for impairment of investment and foreign exchange rate differences on monetary items, such as debt securities recognised in profit or loss.
When available-for-sale financial assets are derecognised, the accumulated losses or gains previously recognised in other comprehensive income are transferred to the income statement.
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Company definitely intends and is able to hold to maturity. Held-to-maturity financial assets are measured at amortised cost less impairment losses.
This category includes two groups: financial instruments held for trading and financial instruments measured at fair value through profit or loss.
A financial asset is classified as such if the principal intent of its acquisition was to sell it in the near term, if it is part of the portfolio of financial instruments for short-term profit taking or if this classification was decided on by the management. Derivatives are always classified as financial instruments held for trading.
A financial asset designated at fair value through profit or loss is an asset:
After initial recognition, financial assets measured at fair value through profit or loss are measured at fair value. The method of determining the fair value of financial assets designated at fair value through profit or loss is described in more detail in Section 2.5.13.
Gains and losses from changes in fair value are recognised in profit or loss.
The category of financial assets measured at fair value through profit or loss also includes financial assets with an embedded unrelated derivative.
Loans and deposits are non-derivative financial assets with fixed or determinable payments not listed in an active market.
At initial recognition, loans and deposits are measured at cost and later at amortised cost using the effective interest method.
After initial recognition, derivatives are measured at fair value through profit or loss. Market value is determined based on the quoted price in an active securities market, and if it is not known, the fair value is estimated according to the valuation model (discounted expected cash flows, Black-Scholes option pricing model).
Derivatives include financial instruments used for hedging cash flows against interest rate risk as well as for hedging cash flows of individual financial instruments and other items. All proven gains or losses from a change in fair value are recognised in profit or loss.
Receivables from insurance operations are recognised when premium is charged to policyholders. At initial recognition, receivables are disclosed at cost, and subsequently reduced by impairment adjustment so as to disclose their expected recoverable amount.
Subrogation receivables are recognised when the Company receives the first instalment of the payment, based on a ruling of the court or based on an agreement reached with the subrogation debtor. In credit insurance, subrogation receivables are recognised immediately at inception.
Cash includes balances with banks, cash in transit, cash on hand and cash equivalents such as call deposits.
On a quarterly basis or at least at the end of the reporting period, it is assessed whether there is objective evidence that a financial asset or group of financial assets is impaired.
For equity instruments, objective evidence of impairment includes an issuer’s statutory changes (bankruptcy, liquidation, etc.), a significant decrease in the fair value of a security or a long-term decrease in its fair value.
For debt instruments, objective evidence of impairment includes an issuer’s statutory changes (bankruptcy, liquidation, etc.), late payment or other significant negative events related to the issuer’s credit rating.
When such evidence exists, impairment losses need to be determined.
An impairment loss on an available-for-sale financial asset is calculated based on its current fair value. The accumulated loss initially recognised in other comprehensive income is transferred to the income statement. The reversal of impairment of equity securities classified as available-for-sale is recognised in other comprehensive income.
Non-financial assets include investments in subsidiaries and associates, intangible assets, property, plant and equipment, investment property, right-of-use assets, non-current assets held for sale and other assets.
Accounting policies for investments in subsidiaries and associates are described in Section 2.5.1.
Intangible assets include goodwill and other intangible assets. Accounting policies for goodwill are described in Section 2.5.1.
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 Company and the Group 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.
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.
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 2.5.4.2.
All income from investment property relates exclusively to leases and is disclosed in profit or loss under other income. Expenses from investment property relate to depreciation and maintenance costs of investment property and are disclosed under other 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 2.5.13.
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 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:
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:
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.
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 non-current 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 non-current items.
Other assets include materials in inventories, short-term deferred expenses and accrued income. At initial recognition, inventories are measured at cost increased by direct costs of procurement. Materials inventories are recorded according to the FIFO method.
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.
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.
Signs of impairment of investments in subsidiaries are assessed on a quarterly 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 quarterly 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.
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:
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:
the business plan of each company approved by the supervisor body of each company for the year in question and the strategic plan of each company for the coming three-year period;
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.
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.
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 the income statement.
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.
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 reserves based on a decision by the Management Board to allocate up to 5% of net profit in the 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.
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:
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 in other comprehensive income, but only for provisions for retirement benefits.
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.
Income from financial investments comprises interest income, dividends, changes in fair value, gains on disposal and other income from financial investments. Expenses from financial investments comprise expenses from impairment of financial investments, losses on disposal and other expenses from financial assets.
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.
Other income includes income from investment property, income from intangible assets and property, plant and equipment, other income not directly related to insurance operations and sales income from non-insurance companies. They relate to income from contracts with clients that is.
Income is recognised upon the transfer of control of goods or services to the client in an amount that reflects consideration to which the entity expects to be entitled in exchange for those goods or services. Income from contracts with clients is recognised at the fair value of the consideration received or receivable, net of returns and discounts, rebates and volume discounts. Income is disclosed when the buyer has taken control of the goods or benefits from the services provided.
When selling goods or services, income is recognised when the goods are delivered to the client or the service is provided and the recoverability of related receivables is reasonably guaranteed. Other expenses include other expenses not directly related to insurance operations and operating expenses of non-insurance companies. Other expenses also include financial expenses, which include interest expenses from subordinated bonds, interest expenses from asset leases and other interest expenses from operating activities. Other expenses are recognised in profit or loss when the service is provided.
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 company recognises in profit or loss on a systematic 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.
Gross operating expenses are recognised as original expenses by nature. Expenses are classified by function in profit or loss. Claim handling expenses are an integral part of claims incurred and asset management costs are an integral part of expenses for investments, whereas acquisition costs and other operating expenses are disclosed separately. Total operating expenses are disclosed by nature and function in disclosures.
Tax expense comprises current tax expense 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. 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:
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:
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.
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 measured at fair value through profit or loss and available-for-sale financial assets are measured at fair value. Financial assets classified as loans and receivables and held-to-maturity financial assets are measured at amortised cost and 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.
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 fulfillment 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 over the forecast period and the discount rate. The discounted cash flow method uses estimated future cash flows and discount rates that reflect interest rates for comparable instruments.
If the fair value of financial instruments cannot be measured reliably, they are measured at cost (amount paid or received), plus any costs incurred in the transaction. Investments in associates and joint ventures are also measured at fair value in the Company’s separate financial statements. For associates and joint ventures whose values are not listed on the stock exchange or for which there is no active market, a valuation model is used (the guideline public company method, the comparable transaction analysis, discounted cash flows, the contractual value).
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 capitalization 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 capitalization 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.
| Financial investment type | Value assessment method | Material parameters | Parameter weight applied | Fair value |
|---|---|---|---|---|
| Debt securities - composite | 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 indices | Level 2 | EXTERNAL APPRAISERS (market operator) |
| Debt securities – compound with exposure to stock markets | Stochastic model | EUR SWAP interest rate curve, issuer credit spreads, comparable issuer credit spreads, interest rate volatility, volatility indices | Level 2 | |
| Derivatives | Black-Scholes model | Index volatility | Level 2 | |
| Debt securities – companies, financial institutions and government | Cash flow discounting according to amortisation schedule | EUR SWAP interest rate curve, issuer credit spreads |
Cash flow discounting according to amortisation schedule
Republic of Slovenia interest rate yield curve, yield curve issued by Republic of Slovenia (Bloomberg ID: I259 Currency); credit spread between 0% and 0.88%
Cash flow discounting according to amortisation schedule
Republic of Slovenia interest rate yield curve, issuer credit spreads, yield curve issued by Republic of Slovenia (Bloomberg ID: I259 Currency); credit spread between 1.71% and 4.49%
Cash flow discounting (growth rate during constant growth period) 2%
EBIT margin (constant growth period) 16.1% - 36.11%
Discount rate 9.29% - 11.18%
Lack of marketability discount 6.5% - 18%
Real property price changes
MVIC/EBITDA
Equity method, accumulated gains and losses
Investment property
Income approach, market approach, land residual method (analysis of the most economical use of development land)
Capitalisation rate, market prices of comparable real property 7.5% - 15% depending on risk/location
Market values based on information available
The fair value of assets and liabilities is shown in section 5.1.
The preparation of the financial statements in line with IFRS requires the use of judgments, estimates and assumptions that affect the value of reported 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, the actual results may differ from the estimates.
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 2021 are presented in Section 3.
| Item in the financial statements / content | Accounting judgement / estimate | Assumptions and sources of uncertainty | Accounting policy |
|---|---|---|---|
| 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 |
A sensitivity analysis of the Group’s and the Company’s profitability, financial position and liquidity to risks and uncertainties.
N/A The section on risks,
Investments in subsidiaries are investments in companies that are directly or indirectly controlled by Zavarovalnica Triglav. A significant judgement is the judgement of whether the conditions of control in an individual company are met.
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 are measured at cost in the Company’s separate financial statements. 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.
Investments in associates and joint ventures are measured at fair value in separate financial statements. A significant estimate is the estimate of the fair value of these investments when their values are not quoted on the stock exchange.
The estimate of comparable public companies, the estimate of comparable stock market transactions, the estimate of expected cash flows, discount rates and long-term growth rates.
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.
Contracts concluded by the Group and Company are classified as insurance or financial contracts according to their characteristics. The estimate of whether a contract is an insurance or financial contract has a significant effect on the further measurement and disclosure of related items in the financial statements.
The assumption of material underwriting risk in relation to additional payouts in the event of a loss event.
N/A Unearned premium and provisions for unexpired risks
When preparing the financial statements, it is assessed whether the Group or the Company created unearned premium in an adequate amount. In the event that unearned premium is not formed in an adequate amount, an estimate is made of the required amount of provisions for unexpired risks.
Assumptions about the claims ratio, assumptions about future gross claims and gross future expenses.
Claims provisions are made to cover claims incurred but not settled by the end of the accounting period. Claims provisions are calculated using the actuarial methods that take into account the pattern of claim settlement in the past and predictions about future trends. Claim provisions are a significant estimate in the financial statements.
Predictions of future claim trends.
Assumptions about mortality, longevity and morbidity, indexation and discount rate for annuity claims.
Mathematical provisions are created to cover life insurance liabilities. They are calculated using actuarial methods and are a significant estimate in the financial statements.
Assumptions about mortality, longevity and morbidity, interest rate, guaranteed technical interest rate.
The adequacy of created life insurance provisions is checked annually using the liability adequacy test (LAT), which is based on the best estimate of provisions, taking into account the present value of the best estimated future expected contractual and other cash flows and is performed at the level of individual insurance contracts.
Assumptions about mortality, longevity and morbidity, assumptions about portfolio persistency, expenses, increase in insurance premium, expected returns and discount rates, profit participation and annuity factor guarantees.
Financial investments are measured at fair value in the financial statements or their fair value is disclosed. The fair value of financial investments is a significant accounting estimate when the fair values of investments are not quoted on the active market (stock market).
| Item in the financial statements | Accounting judgement / estimate | Assumptions and sources of uncertainty | Accounting policy | Assumptions |
|---|---|---|---|---|
Receivables are disclosed in the financial statements at amortised cost, and when preparing the financial statements it is assessed whether the receivables are impaired. A significant judgement is the judgement of credit risk associated with specific receivables or a group of receivables, and a significant estimate is the estimate of the necessary impairment. Assumptions about the recoverability of receivables based on experience from past years.
Property, plant and equipment and investment property are disclosed 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 and investment property are disclosed 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 and investment property are disclosed 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. In 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.
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 are recognised in the financial statements 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. The judgement of the justification of created deferred tax assets is a significant accounting judgement. Assumptions about the future profitability of the Group’s companies and Zav arov alnica Triglav.
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).
Awareness of the risks to which individual companies are exposed is key to their security and financial stability. The Triglav Group has four major sets of financial risks occurring in its operations: underwriting, market, credit and liquidity risks. They are summarised below, including the nature of exposure, measurement methods and references to the relevant section in the annual report where additional information can be found.
| Risk type and reference | Nature of exposure | Method of measurement | Risk management |
|---|---|---|---|
| Underwriting risk | Risk management, Sections 1.5 and 2.3, Accounting Report, Sections 3.17 | Premium risk | Provision risk |
Analysis of premium and provision risk volatility, regular monitoring of low frequency and high severity risks, liability adequacy test (LAT).
Appropriate diversification of the investment portfolio, regular matching of assets and liabilities, regular assessment of market risks according to established methods, the limit system.
The analysis of the credit quality of partners, adequate portfolio diversification, regular monitoring of exposure by credit rating and management of exposures to partners with no credit rating, monitoring of receivables below and over 0 days past due, separate monitoring of subrogation receivables including recovery efficiency, the limit system.
The risk of inappropriate assets in terms of their nature, duration and liquidity compared to liabilities.
Planning of actual and potential net cash outflows, appropriate amount and composition of liquid investments, regular monitoring of the liquidity position at different time intervals, assuming normal and exceptional circumstances, the limit system.
Insurance premium
The COVID-19 epidemic also marked the sale of insurance to both legal entities and natural persons in 2021.
In the segment of selling insurance to natural persons, clients were more sensitive to prices, especially with respect to motor vehicle insurance. Due to lower vehicle use and consequently lower risk exposure, clients expected a reduction in premium. With regard to travel insurance, the effects of the epidemic resulted in lower demand for these insurance policies. In order to maintain the existing insurance portfolio, certain benefits were offered to clients. Clients were less willing to visit an agent or a point of sale. Existing clients were effectively retained with intensified remote underwriting.
In the segment of selling insurance to legal entities, there was a lot of pressure to reduce the premium. Due to the uncertain market situation, companies were even more careful with their financial resources, which led to pressure to get higher discounts and to lower insurance covers. Despite these problems, the COVID-19 epidemic did not have significant negative effects on the volume and structure of written premium, both at the level of the Company and the Group.
Receivables
of uncollec te d receiv ables did not signicantly increase, it is assessed that the impairment criteria adequately re ec t the ac tual reco verability o f receiv ables. In 2021, expenses f or impairment of receiv ables in the amount of EUR 1.9 million (compared to E UR 4 .5 million in 2 020) were recognised at Group level and expenses for impairment of re ceivables in the amount of EUR 1. 2 million ( compared to EUR 3.0 million in 202 0) at the Company level.
In the segment of no n-life insurance cla ims, the COVID- 19 epidemic ma inly af f ec ted the de cline in
repor t s of new claims from insurance s ubclasses, which require a per son’s ac tivit y or mo vement
(e.g. motor vehicle claims, liabilit y claims ), which had a positive impac t on the business results of
this segme nt.
In the segment of lif e insu rance claims, the impact o f the epidemic on business results was relatively
smal l. The Co mpany recorded just under 30 0 deaths due to the CO VID - 19 epidemic, but their impac t
on opera tions was sma ll due to relatively low insurance covers. H owever, the trend of the l ow number
of claims from complementar y accident insurance did not continue in 202 1, w hich had a positive
ef f ec t on the result in 2020 a s a result o f restric ti ve measu res . The Company’s u nder wr iting result in
life insurance was thus comparable to pre- epidemic results.
At Group level, due to the life insurance p or t folio’s struc ture, the epidemic had a negative impac t on
the business result s of T riglav Osiguranje, Belgrade and Lo vćen Životna Osiguranja, Podgoric a. T r iglav,
Zdravst vena zavarovalnica d.d. , which is acti ve in the supplemental health ins urance market in
Slovenia, recorded a large decline in claims due to measures designed to curb the COVID- 19 epidemic.
The COVID- 19 epidemic also had an impac t on the reinsurance and international insurance
environments as it raised awareness o f the need to intro duce safeguards in ins urance contrac ts that
would elimi nate or limit communicable disea se ri ders. This espe cially applies to contrac ts based on
the principle of exclusion.
In the domestic ma rket, most reinsurance contrac ts are concluded accordi ng to the concept of
risks, therefo re the impact o f the COVID- 19 epidemic is relatively smal l. In order to manage the risk
from the communicable disease rider, adjusted clauses were embedded in reinsurance contrac ts
underwrit ten in forei gn mark ets.
The COVID- 19 epidemic did not af fe c t the assum p tions used in the calculation of insurance technical
provision s for non-life insu rance. When creati ng mathem atical provisions for l ife insura nce, it was
assume d that the long-term i mpac t o f the COVID- 19 epidemic on mor talit y would be relativel y
smal l, while the long-term impact o f COVID-19 was no t anticipated in complementar y insurance
covers. In health insurance, the consequences o f the COVID- 19 epidemic had a si gnic ant impact
on the formation of insurance technical provis ions from suppleme nt al hea lth insurance. In order
to implement the provisions of the Ac t D etermining T emporar y Measures to Mitigate and Remedy
the Consequences o f COVID- 19 (Z ZUOOP , also PKP5) and taking i nto account the guidelines o f the
European ins urance su per v isor y authority EIOPA, other insu rance technical p rovisions were created.
Additional provisions are intended to cover not ye t incurred or fu ture loss events arising from the
shor t fall in supplemental health ins urance claims in 2 020 and 2 021 due to the epidemic. In 2020,
EUR 18.1 million was created, and in 20 21 an additional EUR 3.9 m illion, which is a total of
EUR 22 mi llion. De tails are presented in Se c tion 3.18 in the contex t o f the liabi lit y ade quacy tes t
for health i nsurance p rovisions.
In addition to the recover y of individual economies, the climate in the capital markets in 202 1 was
signicantly af fec ted by the epidemiological and health situation related to the C OVID -19 epidemic.
Changes in the nancia l markets and the situation related to the COVID -19 epidemic at the Compan y
and the Group level did not lead to signi cant changes in the structure of investmen t por t fo lios, but
adjustments were made to shares of individual asset classes.
The COVID-19 epidemic did not affect the assumptions used in testing the impairment of investments. The impact of the epidemic is implicitly taken into account in the business plans of companies whose ownership stakes in Zavarovalnica Triglav’s portfolio are subject to model-based valuation.
The COVID-19 epidemic did not significantly affect lessee and lessor relationships, nor did it result in cancellations or modifications in lease relationships on either side. The Company and the Group did not receive significant amounts of lease payments from their lessors, nor did they grant these to their lessees. Lessee payment discipline is regularly monitored, and it was estimated that the COVID-19 epidemic did not significantly affect it.
The countries in which the Group members operate continued to adopt various emergency measures designed to mitigate the consequences of the epidemic in 2021. Emergency measures mainly related to the reimbursement of salary compensation paid or exemption from the payment of social security contributions during the absence of workers due to force majeure and the reimbursement of various expenses. In 2021, a total of EUR 127 thousand of such government grants was received by the Company and EUR 195 thousand at Group level.
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:
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.
| in EUR | Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| Insurance premium tax | 55,497,420 | 50,305,506 | 45,732,765 | 41,216,351 | |
| Fees from income of natural persons (employer's contributions and taxes) | 34,312,596 | 27,111,965 | 14,829,707 | 13,761,227 | |
| Corporate income tax | 20,082,226 | 18,997,540 | 11,928,064 | 13,627,538 | |
| Fire fee | 5,162,084 | 4,885,827 | 4,600,869 | 4,400,353 | |
| Value added tax | 3,878,207 | 4,595,183 | 1,315,778 | 1,741,219 | |
| Fee for the use of building land | 992,342 | 827,968 | 717,619 | 722,112 | |
| Financial services tax | 725,015 | 501,709 | 89,774 | 92,995 | |
| Other fees | 232,516 | 335,453 | 0 | 0 | |
| Total fees charged in the year | 120,882,406 | 107,561,151 | 79,214,576 | 75,561,795 |
Zavarovalnica Triglav’s management monitors the operations of the Triglav Group by business segment and geographical segment.
Business segments are individual components of the Group’s operations that differ from other business segments by nature of transaction, type of service and business risks. Business segments for which the Company’s management separately monitors business results and makes decisions on the allocation of resources are non-life insurance, life insurance, health insurance and non-insurance operations.
Geographical segments are components of the Group’s operations that differ from other geographical segments, mainly in terms of geographical location, economic and regulatory environment, which are subject to different returns and risks. The Company’s management separately monitors business results and makes decisions on the allocation of resources for the Slovenian market and separately for foreign markets.
All components of the Group’s operations are included in one of the business segments and in one of the geographical segments.
The results of a specific business and geographical 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 are included in the monitoring of the amount of assets and liabilities of specific segments.
Business Report
Risk Management
Accounting Report
Notes to the financial statements
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 and separately for the Slovenian market and foreign markets. They are classified in specific insurance groups partly directly and partly through defined allocation keys. Income and expenses from operations of non-insurance companies are fully disclosed under other income or expenses.
Assets and liabilities are allocated directly to each segment and are already kept separately in the accounting records by insurance group and geographical segment. The management monitors the operations of individual segments at the level of non-consolidated financial statements of individual companies, which are summed up for the purposes of analysing the entire financial statements of the Group, without taking into account eliminations from consolidation.
The statement of financial position and the income statement by business and geographical segment are shown below for the reporting and the preceding year.
| Statement of financial position | NON-LIFE | LIFE | HEALTH | OTHER | TOTAL (before eliminations) | ELIMINATIONS | TOTAL (after eliminations) |
|---|---|---|---|---|---|---|---|
| ASSETS | 2,121,657,494 | 2,293,277,858 | 106,463,985 | 207,038,314 | 4,728,437,651 | -354,084,035 | 4,374,353,616 |
| Intangible assets | 80,112,808 | 8,377,752 | 663,298 | 18,030,557 | 107,184,415 | 0 | 107,184,415 |
| Property, plant and equipment | 90,588,295 | 10,233,472 | 2,062,448 | 5,770,997 | 108,655,212 | 0 | 108,655,212 |
| Deferred tax assets | 110,869 | 101,004 | 421,898 | 293,654 | 927,425 | 0 | 927,425 |
| Investment property | 46,340,133 | 1,773,064 | 0 | 22,974,761 | 71,087,958 | 4,023,015 | 75,110,973 |
| Right of use assets | 11,276,046 | 960,258 | 500,797 | 2,750,469 | 15,487,570 | -4,554,461 | 10,933,109 |
| Investments in subsidiaries | 126,066,794 | 13,438,187 | 0 | 70,917,798 | 210,422,779 | -210,422,779 | 0 |
| Investments in associates | 35,591,376 | 439,970 | 0 | 0 | 36,031,346 | 0 | 36,031,346 |
| Financial assets | 1,213,722,046 | 2,211,229,231 | 92,219,328 | 42,731,707 | 3,559,902,312 | -2,584,674 | 3,557,317,638 |
| Financial investments | 1,213,722,046 | 1,591,611,743 | 92,219,328 | 42,731,707 | 2,940,284,824 | -2,584,674 | 2,937,700,150 |
| - loans and deposits | 67,343,910 | 31,324,538 | 0 | 2,020,763 | 100,689,211 | -2,584,674 | 98,104,537 |
| - held to maturity | 0 | 157,560,733 | 0 | 0 | 157,560,733 | 0 | 157,560,733 |
| - available for sale | 1,134,439,152 | 870,239,658 | 92,219,328 | 40,710,944 | 2,137,609,082 | 0 | 2,137,609,082 |
| - recognized at fair value through profit and loss | 11,938,984 | 532,486,814 | 0 | 0 | 544,425,798 | 0 | 544,425,798 |
| Unit-linked insurance assets | 0 | 619,617,488 | 0 | 0 | 619,617,488 | 0 | 619,617,488 |
| Reinsurers’ share of technical provisions | 245,721,499 | 5,789,488 | 3,140,932 | 0 | 254,651,919 | -79,812,029 | 174,839,890 |
| Receivables | 250,038,638 | 4,281,888 | 5,792,983 | 12,889,452 | 273,002,961 | -60,626,052 | 212,376,909 |
| - receivables from direct insurance operations | 110,522,961 | 1,647,367 | 5,344,333 | 61,240 | 117,575,901 | -720,694 | 116,855,207 |
| - receivables from reinsurance and coinsurance operations | 114,992,337 | 196,218 | 281,728 | 0 | 115,470,283 | -48,269,351 | 67,200,932 |
| - current tax receivables | 924,396 | 13,330 | 0 | 3,189,658 | 4,127,384 | 0 | 4,127,384 |
| - other receivables | 23,598,944 | 2,424,973 | 166,922 | 9,638,554 | 35,829,393 | -11,636,007 | 24,193,386 |
| Other assets | 3,080,138 | 1,000,430 | 314,179 | 555,333 | 4,950,080 | -107,055 | 4,843,025 |
| Cash and cash equivalents | 18,810,948 | 35,653,114 | 1,348,122 | 26,509,446 | 82,321,630 | 0 | 82,321,630 |
| Non-current assets held for sale | 197,904 | 0 | 0 | 3,614,140 | 3,812,044 | 0 | 3,812,044 |
| EQUITY AND LIABILITIES | 2,121,657,494 | 2,293,277,858 | 106,463,985 | 207,038,314 | 4,728,437,651 | -354,084,035 | 4,374,353,616 |
| Equity | 743,587,952 | 168,107,999 | 40,652,405 | 185,914,932 | 1,138,263,288 | -205,276,419 | 932,986,869 |
| Controlling interests | 743,587,952 | 168,107,999 | 40,652,405 | 185,914,932 | 1,138,263,288 | -207,752,064 | 930,511,224 |
| - share capital | 113,689,614 | 55,543,349 | 20,822,144 | 103,344,414 | 293,399,521 | -219,698,129 | 73,701,392 |
| - share premium | 43,511,478 | 13,658,827 | 0 | 21,061,946 | 78,232,251 | -27,948,504 | 50,283,747 |
| - reserves from profit | 369,676,651 | 47,734,549 | 1,853,961 | 1,598,175 | 420,863,336 | 770,623 | 421,633,959 |
| - treasury share reserves | 0 | 0 | 0 | 364,680 | 364,680 | 0 | 364,680 |
| - treasury shares | 0 | 0 | 0 | 0 | 0 | -364,680 | -364,680 |
| - fair value reserve | 52,410,528 | 6,571,912 | 813,221 | 19,058,145 | 78,853,806 | -1,019,528 | 77,834,278 |
| - net profit brought forward | 115,164,702 | 36,678,335 | 11,403,820 | 33,876,580 | 197,123,437 | 37,465,557 | 234,588,994 |
| - net profit for the year | 51,103,020 | 8,814,962 | 5,759,259 | 6,673,325 | 72,350,566 | 3,089,281 | 75,439,847 |
| - currency translation differences | -1,968,041 | -893,935 | 0 | -62,333 | -2,924,309 | -46,684 | -2,970,993 |
| Non-controlling interests | 0 | 0 | 0 | 2,475,645 | 2,475,645 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Subordinated liabilities | 49,471,831 | 0 | 0 | 0 | 49,471,831 | 0 | 49,471,831 | |||
| Insurance technical provisions | 1,130,247,082 | 1,472,413,320 | 53,551,980 | 0 | 2,656,212,382 | -79,843,998 | 2,576,368,384 | |||
| - unearned premiums | 386,311,527 | 454,613 | 3,614,672 | 0 | 390,380,812 | -20,337,087 | 370,043,725 | |||
| - mathematical provisions | 0 | 1,432,613,660 | 0 | 0 | 1,432,613,660 | 0 | 1,432,613,660 | |||
| - claims provisions | 711,964,825 | 23,114,787 | 16,058,686 | 0 | 751,138,298 | -56,639,987 | 694,498,311 | |||
| - other insurance technical provisions | 31,970,730 | 16,230,260 | 33,878,622 | 0 | 82,079,612 | -2,866,924 | 79,212,688 | |||
| Insurance technical provisions for unit-linked insurance contracts | 0 | 622,303,399 | 0 | 0 | 622,303,399 | 0 | 622,303,399 | |||
| Employee benefits | 13,617,610 | 2,335,076 | 872,627 | 846,820 | 17,672,133 | 0 | 17,672,133 | |||
| Other provisions | 1,053,458 | 26,518 | 182,905 | 1,249,655 | 2,512,536 | 0 | 2,512,536 | |||
| Deferred tax liabilities | 2,186,148 | 1,914,479 | 0 | 5,288,143 | 9,388,770 | -11,736 | 9,377,034 | |||
| Other financial liabilities | 4,871,905 | 25,666 | 0 | 810,018 | 5,707,589 | -2,621,942 | 3,085,647 | |||
| Operating liabilities | 98,011,738 | 8,890,090 | 6,073,859 | 27,549 | 113,003,236 | -49,661,578 | 63,341,658 | |||
| - liabilities from direct insurance operations | 6,949,487 | 8,165,901 | 5,518,766 | 0 | 20,634,154 | -1,183,597 | 19,450,557 | |||
| - liabilities from reinsurance and co-insurance operations | 88,834,137 | 697,681 | 187,628 | 0 | 89,719,446 | -48,477,981 | 41,241,465 | |||
| - current tax liabilities | 2,228,114 | 26,508 | 367,465 | 27,549 | 2,649,636 | 0 | 2,649,636 | |||
| Lease liabilities | 11,606,194 | 904,600 | 510,009 | 2,935,103 | 15,955,906 | -4,681,100 | 11,274,806 | |||
| Other liabilities | 67,003,576 | 16,356,711 | 4,620,200 | 9,966,094 | 97,946,581 | -11,987,262 | 85,959,319 | |||
| Non-current liabilities held for sale and discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NON-LIFE | LIFE | HEALTH | OTHER | TOTAL (before eliminations) | ELIMINATIONS | TOTAL (after eliminations) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | 2,012,472,564 | 2,201,999,970 | 96,772,481 | 203,230,241 | 4,514,475,256 | -375,034,184 | 4,139,441,072 | |||||
| Intangible assets | 75,493,099 | 5,310,002 | 1,104,346 | 19,068,028 | 100,975,475 | 0 | 100,975,475 | |||||
| Property, plant and equipment | 94,967,543 | 10,338,223 | 2,070,491 | 5,914,779 | 113,291,036 | 0 | 113,291,036 | |||||
| Deferred tax assets | 12,225,408 | 315,728 | 100,492 | 353,711 | 12,995,339 | -12,216,750 | 778,589 | |||||
| Investment property | 46,479,633 | 1,815,663 | 0 | 26,659,489 | 74,954,785 | 4,023,015 | 78,977,800 | |||||
| Right of use assets | 9,196,761 | 742,514 | 736,587 | 2,868,556 | 13,544,418 | -3,723,207 | 9,821,211 | |||||
| Investments in subsidiaries | 126,370,012 | 13,438,187 | 0 | 73,079,881 | 212,888,080 | -212,888,080 | 0 | |||||
| Investments in associates | 27,787,564 | 450,150 | 0 | 0 | 28,237,714 | 0 | 28,237,714 | |||||
| Financial assets | 1,139,058,291 | 2,132,154,775 | 84,738,085 | 40,370,531 | 3,396,321,682 | -7,132,143 | 3,389,189,539 | |||||
| Financial investments | 1,139,058,291 | 1,630,345,795 | 84,738,085 | 40,370,531 | 2,894,512,702 | -7,132,143 | 2,887,380,559 | |||||
| - loans and deposits | 71,528,702 | 28,880,122 | 0 | 4,694,398 | 105,103,222 | -7,132,143 | 97,971,079 | |||||
| - held to maturity | 0 | 162,824,686 | 0 | 0 | 162,824,686 | 0 | 162,824,686 | |||||
| - available for sale | 1,061,065,742 | 920,434,108 | 84,738,085 | 35,676,133 | 2,101,914,068 | 0 | 2,101,914,068 | |||||
| - recognized at fair value through profit and loss | 6,463,847 | 518,206,879 | 0 | 0 | 524,670,726 | 0 | 524,670,726 | |||||
| Unit-linked insurance assets | 0 | 501,808,980 | 0 | 0 | 501,808,980 | 0 | 501,808,980 | |||||
| Reinsurers’ share of technical provisions | 205,023,278 | 2,120,725 | 1,930,507 | 0 | 209,074,510 | -83,200,873 | 125,873,637 | |||||
| Receivables | 244,061,313 | 2,853,381 | 5,773,521 | 10,329,503 | 263,017,718 | -59,833,867 | 203,183,851 | |||||
| - receivables from direct insurance operations | 99,328,743 | 857,266 | 5,415,317 | 46,036 | 105,647,362 | -162,423 | 105,484,939 | |||||
| - receivables from reinsurance and coinsurance operations | 124,912,987 | 125,891 | 288,594 | 0 | 125,327,472 | -52,972,339 | 72,355,133 | |||||
| - current tax receivables | 260,744 | 16,522 | 0 | 1,673,365 | 1,950,631 | 0 | 1,950,631 | |||||
| - other receivables | 19,558,839 | 1,853,702 | 69,610 | 8,610,102 | 30,092,253 | -6,699,105 | 23,393,148 | |||||
| Other assets | 5,163,290 | 427,439 | 110,588 | 657,667 | 6,358,984 | -62,279 | 6,296,705 | |||||
| Cash and cash equivalents | 26,646,372 | 32,033,183 | 207,864 | 23,012,245 | 81,899,664 | 0 | 81,899,664 | |||||
| Non-current assets held for sale | 0 | 0 | 0 | 915,851 | 915,851 | 0 | 915,851 | |||||
| EQUITY AND LIABILITIES | 2,012,472,564 | 2,201,999,970 | 96,772,481 | 203,230,241 | 4,514,475,256 | -375,034,184 | 4,139,441,072 | |||||
| Equity | 692,506,717 | 170,820,488 | 40,491,519 | 182,757,721 | 1,086,576,445 | -216,424,498 | 870,151,947 | |||||
| Controlling interests | 692,506,717 | 170,820,488 | 40,491,519 | 182,757,721 | 1,086,576,445 | -218,927,871 | 867,648,574 | |||||
| - share capital | 115,741,097 | 48,491,866 | 25,822,144 | 103,744,632 | 293,799,739 | -220,098,347 | 73,701,392 | |||||
| - share premium | 43,511,478 | 13,658,827 | 0 | 20,596,489 | 77,766,794 | -27,495,687 | 50,271,107 | |||||
| - reserves from profit | 333,236,478 | 47,223,257 | 1,231,991 | 1,692,535 | 383,384,261 | 722,431 | 384,106,692 | |||||
| - treasury share reserves | 0 | 0 | 0 | 364,680 | 364,680 | 0 | 364,680 | |||||
| - treasury shares | 0 | 0 | 0 | 0 | 0 | -364,680 | -364,680 | |||||
| - fair value reserve | 58,511,213 | 15,245,473 | 2,033,564 | 14,655,399 | 90,445,649 | -1,152,165 | 89,293,484 | |||||
| - net profit brought forward | 107,987,054 | 40,763,981 | 7,030,922 | 39,589,850 | 195,371,807 | 33,912,241 | 229,284,048 | |||||
| - net profit for the year | 35,549,723 | 6,453,044 | 4,372,898 | 2,179,544 | 48,555,209 | -4,423,254 | 44,131,955 | |||||
| - currency translation differences | -2,030,326 | -1,015,960 | 0 | -65,408 | -3,111,694 | -28,410 | -3,140,104 | |||||
| Non-controlling interests | 0 | 0 | 0 | 0 | 0 | 2,503,373 | 2,503,373 | |||||
| Subordinated liabilities | 49,423,693 | 0 | 1,500,000 | 0 | 50,923,693 | -1,500,000 | 49,423,693 | |||||
| Insurance technical provisions | 1,063,657,574 | 1,490,492,569 | 43,649,539 | 0 | 2,597,799,682 | -74,570,538 | 2,523,229,144 | |||||
| - unearned premiums | 357,552,557 | 457,883 | 3,515,846 | 0 | 361,526,286 | -16,765,359 | 344,760,927 | |||||
| - mathematical provisions | 0 | 1,448,316,427 | 0 | 0 | 1,448,316,427 | 8,707,536 | 1,457,023,963 | |||||
| - claims provisions | 674,353,544 | 21,380,025 | 14,654,188 | 0 | 710,387,757 | -65,056,589 | 645,331,168 | |||||
| - other insurance technical provisions | 31,751,473 | 20,338,234 | 25,479,505 | 0 | 77,569,212 | -1,456,126 | 76,113,086 | |||||
| Insurance technical provisions for unit-linked insurance contracts | 0 | 509,984,710 | 0 | 0 | 509,984,710 | 0 | 509,984,710 | |||||
| Employee benefits | 13,719,361 | 2,523,496 | 748,274 | 790,022 | 17,781,153 | 0 | 17,781,153 | |||||
| Other provisions | 1,337,516 | 128,168 | 170,071 | 1,173,346 | 2,809,101 | 0 | 2,809,101 | |||||
| Deferred tax liabilities | 13,716,085 | 8,795,206 | 0 | 4,256,653 | 26,767,944 | -12,228,429 | 14,539,515 | |||||
| Other financial liabilities | 2,646,272 | 62,652 | 99,125 | 1,612,573 | 4,420,622 | -1,524,788 | 2,895,834 | |||||
| Operating liabilities | 110,512,564 | 8,970,466 | 4,240,077 | 148,714 | 123,871,821 | -53,558,783 | 70,313,038 | |||||
| - liabilities from direct insurance operations | 5,370,819 | 8,352,551 | 3,602,278 | 0 | 17,325,648 | -523,792 | 16,801,856 | |||||
| - liabilities from reinsurance and coinsurance operations | 101,187,933 | 547,228 | 240,568 | 0 | 101,975,729 | -53,034,991 | 48,940,738 | |||||
| - current tax liabilities | 3,953,812 | 70,687 | 397,231 | 148,714 | 4,570,444 | 0 | 4,570,444 | |||||
| Lease liabilities | 9,425,284 | 684,384 | 745,771 | 3,024,607 | 13,880,046 | -3,854,514 | 10,025,532 | |||||
| Other liabilities | 55,527,498 | 9,537,831 | 5,128,105 | 9,466,605 | 79,660,039 | -11,372,634 | 68,287,405 | |||||
| Non-current liabilities held for sale and discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
in EUR
| 2021 | 2020 | ||||||||||||
| NON-LIFE | LIFE | HEALTH | OTHER | NON-LIFE | LIFE | HEALTH | OTHER | ||||||
| Net premium income | 677,079,548 | 244,584,435 | 198,182,068 | 0 | 1,119,846,051 | 643,779,552 | 227,378,645 | 195,596,628 | 0 | 1,066,754,825 | |||
| - gross written premium | 904,500,010 | 250,160,945 | 198,314,595 | 0 | 1,352,975,550 | 807,244,322 | 230,817,653 | 195,713,390 | 0 | 1,233,775,365 | |||
| - ceded written premium | -215,369,686 | -5,580,189 | 0 | 0 | -220,949,875 | -156,597,482 | -3,424,867 | 0 | 0 | -160,022,349 | |||
| - change in unearned premium reserve | -12,050,776 | 0 | 3,679 | -132,527 | 0 | -12,179,624 | -6,867,288 | -14,141 | -116,762 | 0 | -6,998,191 | ||
| Income from investments in subsidiaries and associates | 1,093,864 | 0 | 0 | 350,190 | 1,444,054 | 249,555 | 0 | 0 | 187,055 | 436,610 | |||
| - profit on equity investments accounted for using the equity method | 1,093,864 | 0 | 0 | 350,190 | 1,444,054 | 249,555 | 0 | 0 | 187,055 | 436,610 |
| Other income from investments in subsidiaries and associates | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income from investments | 23,313,042 | 131,084,839 | 881,499 | 59,791 | 155,339,171 | 34,823,751 | 86,989,555 | 781,928 | 484,215 | 123,079,449 | |||
| Interest income calculated using the effective interest method | 10,513,512 | 23,153,778 | 569,890 | 44,099 | 34,281,279 | 13,274,816 | 28,148,701 | 585,048 | 47,237 | 42,055,802 | |||
| Gains on disposals | 6,288,821 | 9,795,552 | 203,031 | 13,936 | 16,301,340 | 17,065,688 | 22,562,061 | 151,048 | 384,092 | 40,162,889 | |||
| Other income from investments | 6,510,709 | 98,135,509 | 108,578 | 1,756 | 104,756,552 | 4,483,247 | 36,278,793 | 45,832 | 52,886 | 40,860,758 | |||
| Other income from insurance operations | 46,745,180 | 1,976,072 | 73,048 | 0 | 48,794,300 | 39,882,940 | 1,056,365 | 67,688 | 0 | 41,006,993 | |||
| Fees and commission income | 36,966,451 | 1,949,637 | 0 | 0 | 38,916,088 | 29,643,684 | 1,006,073 | 0 | 0 | 30,649,757 | |||
| Other income from insurance operations | 9,778,729 | 26,435 | 73,048 | 0 | 9,878,212 | 10,239,256 | 50,292 | 67,688 | 0 | 10,357,236 | |||
| Other income | 11,211,689 | 428,125 | 109,532 | 41,584,714 | 53,334,060 | 7,275,430 | 93,730 | 105,839 | 36,138,978 | 43,613,977 | |||
| Net claims incurred | 363,348,949 | 185,440,722 | 166,239,117 | 0 | 715,028,788 | 359,449,906 | 172,435,721 | 151,746,148 | 0 | 683,631,775 | |||
| Gross claims settled | 393,254,881 | 185,673,862 | 157,651,307 | 0 | 736,580,050 | 380,855,243 | 172,878,283 | 143,710,042 | 0 | 697,443,568 | |||
| Reinsurers’ share | -42,961,049 | -1,924,694 | 1,283 | 0 | -44,884,460 | -33,303,933 | -975,656 | 659 | 0 | -34,278,930 | |||
| Changes in claims provisions | 13,055,117 | 1,691,554 | 1,405,723 | 0 | 16,152,394 | 11,898,596 | 533,094 | 109,344 | 0 | 12,541,034 | |||
| Equalisation scheme expenses for supplementary health insurance | 0 | 0 | 7,180,804 | 0 | 7,180,804 | 0 | 0 | 7,926,103 | 0 | 7,926,103 | |||
| Change in other insurance technical provisions (excluding ULI) | -503,642 | -10,008,883 | 8,399,117 | 0 | -2,113,408 | -126,038 | 44,301,421 | 18,461,207 | 0 | 62,636,590 | |||
| Change in insurance technical provisions for unit-linked insurance contracts | 0 | 112,661,349 | 0 | 0 | 112,661,349 | 0 | 25,492,453 | 0 | 0 | 25,492,453 | |||
| Expenses for bonuses and discounts | 11,392,922 | 11,221 | 0 | 0 | 11,404,143 | 17,971,591 | 80,236 | 3,298,449 | 0 | 21,350,276 | |||
| Operating expenses | 209,838,574 | 41,771,953 | 15,247,381 | 0 | 266,857,908 | 190,362,748 | 36,323,110 | 14,226,877 | 0 | 240,912,735 | |||
| Acquisition costs | 155,114,037 | 26,761,666 | 3,035,467 | 0 | 184,911,170 | 138,295,231 | 21,650,359 | 3,583,376 | 0 | 163,528,966 | |||
| Other operating costs | 54,724,537 | 15,010,287 | 12,211,914 | 0 | 81,946,738 | 52,067,517 | 14,672,751 | 10,643,501 | 0 | 77,383,769 | |||
| Expenses from investments in subsidiaries and associates | 135,453 | 10,179 | 0 | 0 | 145,632 | 63,508 | 75,914 | 0 | 0 | 139,422 | |||
| Loss on investments accounted for using the equity method | 135,453 | 10,179 | 0 | 0 | 145,632 | 63,508 | 75,914 | 0 | 0 | 139,422 | |||
| Other expenses from financial assets and liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Expenses from investments | 6,780,978 | 24,870,022 | 92,945 | 88,841 | 31,832,786 | 11,424,877 | 29,194,418 | 80,435 | 293,481 | 40,993,211 | |||
| Loss on impairment of investments | 29,285 | 4,343 | 0 | 0 | 33,628 | 1,629,354 | 72,430 | 0 | 269,518 | 1,971,302 | |||
| Loss on disposal of investments | 1,720,014 | 5,384,202 | 18,116 | 407 | 7,122,739 | 1,647,936 | 5,273,673 | 19,881 | 0 | 6,941,490 | |||
| Other expenses from investments | 5,031,679 | 19,481,477 | 74,829 | 88,434 | 24,676,419 | 8,147,587 | 23,848,315 | 60,554 | 23,963 | 32,080,419 | |||
| Other insurance expenses | 50,434,727 | 991,677 | 489,536 | 0 | 51,915,940 | 49,046,549 | 1,728,695 | 748,144 | 0 | 51,523,388 | |||
| Other expenses | 20,779,040 | 2,696,207 | 792,471 | 34,111,935 | 58,379,653 | 18,796,881 | 2,785,118 | 639,547 | 35,087,176 | 57,308,722 | |||
| Expenses from financing | 2,465,509 | 55,600 | 0 | 208,177 | 2,729,286 | 2,628,571 | 154,221 | -11,408 | 166,117 | 2,937,501 | |||
| Other expenses | 18,313,531 | 2,640,607 | 792,471 | 33,903,758 | 55,650,367 | 16,168,310 | 2,630,897 | 650,955 | 34,921,059 | 54,371,221 | |||
| Profit before tax | 97,236,322 | 19,629,024 | 7,985,580 | 7,793,919 | 132,644,845 | 79,021,206 | 3,101,209 | 7,351,276 | 1,429,591 | 90,903,282 | |||
| Income tax expense | 15,130,729 | 974,805 | 1,469,393 | 2,104,225 | 19,679,152 | 13,356,181 | 1,410,070 | 1,051,914 | 1,420,419 | 17,238,584 | |||
| NET PROFIT FOR THE PERIOD | 82,105,593 | 18,654,219 | 6,516,187 | 5,689,694 | 112,965,693 | 65,665,025 | 1,691,139 | 6,299,362 | 9,172 | 73,664,698 | |||
| Net profit/loss attributable to the controlling company | 81,973,513 | 18,650,761 | 6,516,187 | 5,621,353 | 112,761,814 | 65,361,678 | 1,698,523 | 6,299,362 | 144,810 | 73,504,373 | |||
| Net profit/loss attributable to the non-controlling interest holders | 132,080 | 3,458 | 0 | 68,341 | 203,879 | 303,347 | -7,384 | 0 | -135,638 | 160,325 |
| TOTAL (before eliminations) | ELIMINATIONS | TOTAL (after eliminations) | |||||
|---|---|---|---|---|---|---|---|
| ASSETS | 4,209,162,813 | 519,274,838 | 4,728,437,651 | -354,084,035 | 4,374,353,616 | ||
| Intangible assets | 87,040,191 | 20,144,224 | 107,184,415 | 0 | 107,184,415 | ||
| Property, plant and equipment | 70,597,438 | 38,057,774 | 108,655,212 | 0 | 108,655,212 | ||
| Deferred tax assets | 702,993 | 224,432 | 927,425 | 0 | 927,425 | ||
| Investment property | 65,830,986 | 5,256,972 | 71,087,958 | 4,023,015 | 75,110,973 | ||
| Right of use assets | 7,819,804 | 7,667,766 | 15,487,570 | -4,554,461 | 10,933,109 | ||
| Investments in subsidiaries | 204,614,572 | 5,808,207 | 210,422,779 | -210,422,779 | 0 | ||
| Investments in associates | 36,031,346 | 0 | 36,031,346 | 0 | 36,031,346 | ||
| Financial assets | 3,267,043,376 | 292,858,936 | 3,559,902,312 | -2,584,674 | 3,557,317,638 | ||
| Financial investments | 2,674,514,711 | 265,770,113 | 2,940,284,824 | -2,584,674 | 2,937,700,150 | ||
| – loans and deposits | 50,234,018 | 50,455,193 | 100,689,211 | -2,584,674 | 98,104,537 | ||
| – held to maturity | 149,195,563 | 8,365,170 | 157,560,733 | 0 | 157,560,733 | ||
| – available for sale | 1,947,934,174 | 189,674,908 | 2,137,609,082 | 0 | 2,137,609,082 | ||
| – recognised at fair value through profit and loss | 527,150,956 | 17,274,842 | 544,425,798 | 0 | 544,425,798 | ||
| Unit-linked insurance assets | 592,528,665 | 27,088,823 | 619,617,488 | 0 | 619,617,488 | ||
| Reinsurers’ share of technical provisions | 201,524,459 | 53,127,460 | 254,651,919 | -79,812,029 | 174,839,890 | ||
| Receivables | 205,351,678 | 67,651,283 | 273,002,961 | -60,626,052 | 212,376,909 | ||
| – receivables from direct insurance operations | 79,378,490 | 38,197,411 | 117,575,901 | -720,694 | 116,855,207 | ||
| – receivables from reinsurance and coinsurance operations | 97,809,626 | 17,660,657 | 115,470,283 | -48,269,351 | 67,200,932 | ||
| – current tax receivables | 3,733,579 | 393,805 | 4,127,384 | 0 | 4,127,384 | ||
| – other receivables | 24,429,983 | 11,399,410 | 35,829,393 | -11,636,007 | 24,193,386 | ||
| Other assets | 2,136,932 | 2,813,148 | 4,950,080 | -107,055 | 4,843,025 | ||
| Cash and cash equivalents | 56,904,412 | 25,417,218 | 82,321,630 | 0 | 82,321,630 | ||
| Non-current assets held for sale | 3,564,626 | 247,418 | 3,812,044 | 0 | 3,812,044 |
| TOTAL (before eliminations) | ELIMINATIONS | TOTAL (after eliminations) | |||||
|---|---|---|---|---|---|---|---|
| Equity | 1,009,582,130 | 128,681,158 | 1,138,263,288 | -205,276,419 | 932,986,869 | ||
| Controlling interests | 1,009,582,130 | 128,681,158 | 1,138,263,288 | -207,752,064 | 930,511,224 | ||
| – share capital | 192,180,918 | 101,218,603 | 293,399,521 | -219,698,129 | 73,701,392 | ||
| – share premium | 76,212,455 | 2,019,796 | 78,232,251 | -27,948,504 | 50,283,747 | ||
| – reserves from profit | 410,086,847 | 10,776,489 | 420,863,336 | 770,623 | 421,633,959 | ||
| – treasury share reserves | 364,680 | 0 | 364,680 | 0 | 364,680 | ||
| – treasury shares | 0 | 0 | 0 | -364,680 | -364,680 | ||
| – fair value reserve | 73,779,454 | 5,074,352 | 78,853,806 | -1,019,528 | 77,834,278 | ||
| – net profit brought forward | 192,565,348 | 4,558,089 | 197,123,437 | 37,465,557 | 234,588,994 | ||
| – net profit/loss for the year | 64,392,428 | 7,958,138 | 72,350,566 | 3,089,281 | 75,439,847 | ||
| – currency translation differences | 0 | -2,924,309 | -2,924,309 | -46,684 | -2,970,993 | ||
| Non-controlling interests | 0 | 0 | 0 | 2,475,645 | 2,475,645 | ||
| Subordinated liabilities | 49,471,831 | 0 | 49,471,831 | 0 | 49,471,831 | ||
| Insurance technical provisions | 2,354,629,760 | 301,582,622 | 2,656,212,382 | -79,843,998 | 2,576,368,384 | ||
| – unearned premiums | 291,969,004 | 98,411,808 | 390,380,812 | -20,337,087 | 370,043,725 | ||
| – mathematical provisions | 1,345,183,071 | 87,430,589 | 1,432,613,660 | 0 | 1,432,613,660 | ||
| – claims provisions | 638,293,195 | 112,845,103 | 751,138,298 | -56,639,987 | 694,498,311 | ||
| – other insurance technical provisions | 79,184,490 | 2,895,122 | 82,079,612 | -2,866,924 | 79,212,688 | ||
| Insurance technical provisions for unit-linked insurance contracts | 595,544,240 | 26,759,158 | 622,303,399 | 0 | 622,303,399 | ||
| Employee benefits | 14,696,255 | 2,975,878 | 17,672,133 | 0 | 17,672,133 | ||
| Other provisions | 1,598,604 | 913,932 | 2,512,536 | 0 | 2,512,536 | ||
| Deferred tax liabilities | 7,916,794 | 1,471,976 | 9,388,770 | -11,736 | 9,377,034 | ||
| Other financial liabilities | 2,873,112 | 2,834,477 | 5,707,589 | -2,621,942 | 3,085,647 | ||
| Operating liabilities | 83,749,408 | 29,253,828 | 113,003,236 | -49,661,578 | 63,341,658 | ||
| – liabilities from direct insurance operations | 16,753,335 | 3,880,819 | 20,634,154 | -1,183,597 | 19,450,557 | ||
| – liabilities from reinsurance and co-insurance operations | 64,585,731 | 25,133,715 | 89,719,446 | -48,477,981 | 41,241,465 | ||
| – current tax liabilities | 2,410,342 | 239,294 | 2,649,636 | 0 | 2,649,636 | ||
| Lease liabilities | 7,976,199 | 7,979,707 | 15,955,906 | -4,681,100 | 11,274,806 | ||
| Other liabilities | 81,124,480 | 16,822,102 | 97,946,582 | -11,987,263 | 85,959,319 | ||
| Non-current liabilities held for sale and discontinued operations | 0 | 0 | 0 | 0 | 0 |
| in EUR | 31 December 2020 | SLOVENIA | OTHER | TOTAL (before eliminations) | ELIMINATIONS | TOTAL (after eliminations) | |
|---|---|---|---|---|---|---|---|
| ASSETS | 4,032,148,922 | 482,326,334 | 4,514,475,256 | -375,034,184 | 4,139,441,072 | ||
| Intangible assets | 84,017,812 | 16,957,663 | 100,975,475 | 0 | 100,975,475 | ||
| Property, plant and equipment | 73,182,453 | 40,108,583 | 113,291,036 | 0 | 113,291,036 | ||
| Deferred tax assets | 12,656,083 | 339,256 | 12,995,339 | -12,216,750 | 778,589 | ||
| Investment property | 69,240,958 | 5,713,827 | 74,954,785 | 4,023,015 | 78,977,800 | ||
| Right of use assets | 6,034,215 | 7,510,203 | 13,544,418 | -3,723,207 | 9,821,211 | ||
| Investments in subsidiaries | 207,189,438 | 5,698,642 | 212,888,080 | -212,888,080 | 0 | ||
| Investments in associates | 28,237,714 | 0 | 28,237,714 | 0 | 28,237,714 | ||
| Financial assets | 3,122,540,978 | 273,780,704 | 3,396,321,682 | -7,132,143 | 3,389,189,539 | ||
| Financial investments | 2,643,372,240 | 251,140,462 | 2,894,512,702 | -7,132,143 | 2,887,380,559 | ||
| – loans and deposits | 57,670,422 | 47,432,800 | 105,103,222 | -7,132,143 | 97,971,079 | ||
| – held to maturity | 154,495,490 | 8,329,196 | 162,824,686 | 0 | 162,824,686 | ||
| – available for sale | 1,914,114,795 | 187,799,273 | 2,101,914,068 | 0 | 2,101,914,068 | ||
| – recognized at fair value through profit and loss | 517,091,533 | 7,579,193 | 524,670,726 | 0 | 524,670,726 | ||
| Unit-linked insurance assets | 479,168,738 | 22,640,242 | 501,808,980 | 0 | 501,808,980 | ||
| Reinsurers’ share of technical provisions | 165,288,509 | 43,786,001 | 209,074,510 | -83,200,873 | 125,873,637 | ||
| Receivables | 203,568,387 | 59,449,331 | 263,017,718 | -59,833,867 | 203,183,851 | ||
| – receivables from direct insurance operations | 73,047,776 | 32,599,586 | 105,647,362 | -162,423 | 105,484,939 | ||
| – receivables from reinsurance and coinsurance operations | 109,694,158 | 15,633,314 | 125,327,472 | -52,972,339 | 72,355,133 | ||
| – current tax receivables | 1,824,200 | 126,431 | 1,950,631 | 0 | 1,950,631 | ||
| – other receivables | 19,002,253 | 11,090,000 | 30,092,253 | -6,699,105 | 23,393,148 | ||
| Other assets | 4,263,758 | 2,095,226 | 6,358,984 | -62,279 | 6,296,705 | ||
| Cash and cash equivalents | 55,159,650 | 26,740,014 | 81,899,664 | 0 | 81,899,664 | ||
| Non-current assets held for sale | 768,967 | 146,884 | 915,851 | 0 | 915,851 | ||
| EQUITY AND LIABILITIES | 4,032,148,922 | 482,326,334 | 4,514,475,256 | -375,034,184 | 4,139,441,072 | ||
| Equity | 961,766,208 | 124,810,237 | 1,086,576,445 | -216,424,498 | 870,151,947 | ||
| Controlling interests | 961,766,208 | 124,810,237 | 1,086,576,445 | -218,927,871 | 867,648,574 | ||
| – share capital | 192,452,158 | 101,347,581 | 293,799,739 | -220,098,347 | 73,701,392 | ||
| – share premium | 75,746,998 | 2,019,796 | 77,766,794 | -27,495,687 | 50,271,107 | ||
| – reserves from profit | 372,764,877 | 10,619,384 | 383,384,261 | 722,431 | 384,106,692 | ||
| – treasury share reserves | 364,680 | 0 | 364,680 | 0 | 364,680 | ||
| – treasury shares | 0 | 0 | 0 | -364,680 | -364,680 | ||
| – fair value reserve | 81,192,803 | 9,252,846 | 90,445,649 | -1,152,165 | 89,293,484 | ||
| – net profit brought forward | 196,182,765 | -810,958 | 195,371,807 | 33,912,241 | 229,284,048 | ||
| – net profit/loss for the year | 43,061,927 | 5,493,282 | 48,555,209 | -4,423,254 | 44,131,955 | ||
| – currency translation differences | 0 | -3,111,694 | -3,111,694 | -28,410 | -3,140,104 | ||
| Non-controlling interests | 0 | 0 | 0 | 2,503,373 | 2,503,373 | ||
| Subordinated liabilities | 50,923,693 | 0 | 50,923,693 | -1,500,000 | 49,423,693 | ||
| Insurance technical provisions | 2,321,584,385 | 276,215,297 | 2,597,799,682 | -74,570,538 | 2,523,229,144 | ||
| – unearned premiums | 274,057,915 | 87,468,371 | 361,526,286 | -16,765,359 | 344,760,927 | ||
| – mathematical provisions | 1,370,622,906 | 77,693,521 | 1,448,316,427 | 8,707,536 | 1,457,023,963 | ||
| – claims provisions | 603,087,599 | 107,300,158 | 710,387,757 | -65,056,589 | 645,331,168 | ||
| – other insurance technical provisions | 73,815,965 | 3,753,247 | 77,569,212 | -1,456,126 | 76,113,086 | ||
| Insurance technical provisions for unit-linked insurance contracts | 487,386,393 | 22,598,317 | 509,984,710 | 0 | 509,984,710 | ||
| Employee benefits | 14,754,947 | 3,026,206 | 17,781,153 | 0 | 17,781,153 | ||
| Other provisions | 1,823,032 | 986,069 | 2,809,101 | 0 | 2,809,101 | ||
| Deferred tax liabilities | 25,077,905 | 1,690,039 | 26,767,944 | -12,228,429 | 14,539,515 | ||
| Other financial liabilities | 2,467,346 | 1,953,276 | 4,420,622 | -1,524,788 | 2,895,834 | ||
| Operating liabilities | 100,356,539 | 23,515,282 | 123,871,821 | -53,558,783 | 70,313,038 | ||
| – liabilities from direct insurance operations | 14,510,500 | 2,815,148 | 17,325,648 | -523,792 | 16,801,856 | ||
| – liabilities from reinsurance and co-insurance operations | 81,808,051 | 20,167,678 | 101,975,729 | -53,034,991 | 48,940,738 | ||
| – current tax liabilities | 4,037,988 | 532,456 | 4,570,444 | 0 | 4,570,444 | ||
| Lease liabilities | 6,177,790 | 7,702,256 | 13,880,046 | -3,854,514 | 10,025,532 | ||
| Other liabilities | 59,830,684 | 19,829,355 | 79,660,039 | -11,372,634 | 68,287,405 | ||
| Non-current liabilities held for sale and discontinued operations | 0 | 0 | 0 | 0 | 0 |
in EUR
| 2021 | 2020 | |||||||
| SLOVENIA | OTHER | TOTAL | SLOVENIA | OTHER | TOTAL | |||
| Net premium income | 906,255,858 | 213,590,193 | 1,119,846,051 | 875,282,314 | 191,472,511 | 1,066,754,825 | ||
| - gross written premium | 1,096,280,433 | 256,695,117 | 1,352,975,550 | 1,009,688,387 | 224,086,978 | 1,233,775,365 | ||
| - ceded written premium | -180,456,640 | -40,493,235 | -220,949,875 | -129,715,942 | -30,306,407 | -160,022,349 | ||
| - change in unearned premium reserve | -9,567,935 | -2,611,689 | -12,179,624 | -4,690,131 | -2,308,060 | -6,998,191 | ||
| Income from investments in subsidiaries and associates | 1,444,054 | 0 | 1,444,054 | 436,610 | 0 | 436,610 | ||
| - profit on equity investments accounted for using the equity method | 1,444,054 | 0 | 1,444,054 | 436,610 | 0 | 436,610 | ||
| - other income from investments in subsidiaries and associates | 0 | 0 | 0 | 0 | 0 | 0 |
| 143,978,937 | 11,360,234 | 155,339,171 | 114,356,230 | 8,723,219 | 123,079,449 | |||
|---|---|---|---|---|---|---|---|---|
| - interest income calculated using the effective interest method | 28,027,866 | 6,253,413 | 34,281,279 | 35,524,105 | 6,531,697 | 42,055,802 | ||
| - gains on disposals | 15,883,514 | 417,826 | 16,301,340 | 39,959,646 | 203,243 | 40,162,889 | ||
| - other income from investments | 100,067,557 | 4,688,995 | 104,756,552 | 38,872,479 | 1,988,279 | 40,860,758 |
| 39,799,148 | 8,995,152 | 48,794,300 | 31,997,652 | 9,009,341 | 41,006,993 | |
|---|---|---|---|---|---|---|
| - fees and commission income | 32,848,742 | 6,067,346 | 38,916,088 | 25,044,990 | 5,604,767 | 30,649,757 |
| - other income from insurance operations | 6,950,406 | 2,927,806 | 9,878,212 | 6,952,662 | 3,404,574 | 10,357,236 |
| 41,096,092 | 12,237,968 | 53,334,060 | 35,817,868 | 7,796,109 | 43,613,977 |
|---|---|---|---|---|---|
| 596,436,554 | 118,592,234 | 715,028,788 | 576,507,024 | 107,124,751 | 683,631,775 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| - gross claims settled | 612,775,009 | 123,805,041 | 736,580,050 | 592,971,464 | 104,472,104 | 697,443,568 | ||||
| - reinsurers’ share | -35,058,683 | -9,825,777 | -44,884,460 | -25,176,022 | -9,102,908 | -34,278,930 | ||||
| - changes in claims provisions | 11,539,424 | 4,612,970 | 16,152,394 | 785,479 | 11,755,555 | 12,541,034 | ||||
| - equalisation scheme expenses for supplementary health insurance | 7,180,804 | 0 | 7,180,804 | 7,926,103 | 0 | 7,926,103 |
| -7,719,847 | 5,606,439 | -2,113,408 | 57,266,878 | 5,369,712 | 62,636,590 |
|---|---|---|---|---|---|
| 108,609,475 | 4,051,874 | 112,661,349 | 23,936,744 | 1,555,709 | 25,492,453 |
|---|---|---|---|---|---|
| 10,490,542 | 913,601 | 11,404,143 | 19,331,031 | 2,019,245 | 21,350,276 |
|---|---|---|---|---|---|
| 185,659,845 | 81,198,063 | 266,857,908 | 170,227,757 | 70,684,978 | 240,912,735 | |
|---|---|---|---|---|---|---|
| - acquisition costs | 124,303,436 | 60,607,734 | 184,911,170 | 114,294,794 | 49,234,172 | 163,528,966 |
| - other operating costs | 61,356,409 | 20,590,329 | 81,946,738 | 55,932,963 | 21,450,806 | 77,383,769 |
| 145,632 | 0 | 145,632 | 139,422 | 0 | 139,422 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| - loss on investments accounted for using the equity method | 145,632 | 0 | 145,632 | 139,422 | 0 | 139,422 | |||||
| - other expenses from financial assets and liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| 30,608,229 | 1,224,557 | 31,832,786 | 40,290,313 | 702,898 | 40,993,211 | |
|---|---|---|---|---|---|---|
| - loss on impairment of investments | 0 | 33,628 | 33,628 | 1,901,869 | 69,433 | 1,971,302 |
| - loss on disposal of investments | 7,101,695 | 21,044 | 7,122,739 | 6,922,512 | 18,978 | 6,941,490 |
| - other expenses from investments | 23,506,534 | 1,169,885 | 24,676,419 | 31,465,932 | 614,487 | 32,080,419 |
| 46,552,182 | 5,363,758 | 51,915,940 | 45,288,127 | 6,235,261 | 51,523,388 |
|---|---|---|---|---|---|
| 48,575,954 | 9,803,699 | 58,379,653 | 46,239,599 | 11,069,123 | 57,308,722 | |
|---|---|---|---|---|---|---|
| - expenses from financing | 2,304,423 | 424,863 | 2,729,286 | 2,517,321 | 420,180 | 2,937,501 |
| - other expenses | 46,271,531 | 9,378,836 | 55,650,367 | 43,722,278 | 10,648,943 | 54,371,221 |
| 113,215,523 | 19,429,322 | 132,644,845 | 78,663,779 | 12,239,503 | 90,903,282 |
|---|---|---|---|---|---|
| 18,425,518 | 1,253,634 | 19,679,152 | 16,123,156 | 1,115,428 | 17,238,584 |
|---|---|---|---|---|---|
| 94,790,005 | 18,175,688 | 112,965,693 | 62,540,623 | 11,124,075 | 73,664,698 | |
|---|---|---|---|---|---|---|
| Net profit/loss attributable to the controlling company | 94,790,005 | 17,971,809 | 112,761,814 | 62,540,623 | 10,963,750 | 73,504,373 |
| Net profit/loss attributable to the non-controlling interest holders | 0 | 203,879 | 203,879 | 0 | 160,325 | 160,325 |
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. 1/16), the Company’s operations are described by specific business segments.
in EUR
| 31 December 2021 | 31 December 2020 | |||||||
| Statement of financial position | NON-LIFE | LIFE | TOTAL | NON-LIFE | LIFE | TOTAL | ||
| ASSETS | 1,425,009,986 | 1,704,592,224 | 3,129,602,210 | 1,349,958,827 | 1,663,255,332 | 3,013,214,159 | ||
| Intangible assets | 58,793,824 | 8,228,203 | 67,022,027 | 57,234,354 | 5,163,225 | 62,397,579 | ||
| Property, plant and equipment | 57,022,314 | 8,120,993 | 65,143,307 | 59,618,441 | 8,157,010 | 67,775,451 | ||
| Deferred tax assets | 0 | 0 | 0 | 11,970,197 | 246,554 | 12,216,751 | ||
| Investment property | 43,019,770 | 820,285 | 43,840,055 | 43,614,546 | 836,730 | 44,451,276 | ||
| Right of use assets | 4,548,298 | 0 | 4,548,298 | 3,587,916 | 0 | 3,587,916 | ||
| Investments in subsidiaries | 120,444,672 | 11,480,011 | 131,924,683 | 120,857,455 | 11,480,011 | 132,337,466 | ||
| Investments in associates | 41,693,997 | 0 | 41,693,997 | 31,337,951 | 0 | 31,337,951 | ||
| Financial assets | 841,558,081 | 1,666,539,870 | 2,508,097,951 | 800,423,050 | 1,625,457,811 | 2,425,880,861 | ||
| Financial investments | 841,558,081 | 1,127,121,898 | 1,968,679,979 | 800,423,050 | 1,183,165,323 | 1,983,588,373 | ||
| – loans and deposits | 25,488,933 | 7,032,590 | 32,521,523 | 30,245,946 | 6,705,139 | 36,951,085 | ||
| – held to maturity | 0 | 140,946,233 | 140,946,233 | 0 | 143,908,512 | 143,908,512 | ||
| – available for sale | 816,048,831 | 772,341,432 | 1,588,390,263 | 770,063,803 | 824,938,626 | 1,595,002,429 | ||
| – recognised at fair value through profit and loss | 20,317 | 206,801,643 | 206,821,960 | 113,301 | 207,613,046 | 207,726,347 | ||
| Unit-linked insurance assets | 0 | 539,417,972 | 539,417,972 | 0 | 442,292,488 | 442,292,488 | ||
| Reinsurers’ share of technical provisions | 135,986,397 | 91,560 | 136,077,957 | 105,862,172 | 41,266 | 105,903,438 | ||
| Receivables | 113,944,682 | 1,883,002 | 115,827,684 | 99,841,079 | 1,438,370 | 101,279,449 | ||
| – receivables from direct insurance operations | 73,285,008 | 231,566 | 73,516,574 | 67,453,193 | 179,021 | 67,632,214 | ||
| – receivables from reinsurance and coinsurance operations | 23,516,494 | 5,846 | 23,522,340 | 19,797,094 | 0 | 19,797,094 | ||
| – current tax receivables | 564,166 | 0 | 564,166 | 0 | 0 | 0 | ||
| – other receivables | 16,579,014 | 1,645,590 | 18,224,604 | 12,590,792 | 1,259,349 | 13,850,141 | ||
| Other assets | 1,463,755 | 49,505 | 1,513,260 | 3,695,106 | 46,693 | 3,741,799 | ||
| Cash and cash equivalents | 6,534,196 | 7,378,795 | 13,912,991 | 11,916,560 | 10,387,662 | 22,304,222 | ||
| EQUITY AND LIABILITIES | 1,425,009,986 | 1,704,592,224 | 3,129,602,210 | 1,349,958,827 | 1,663,255,332 | 3,013,214,159 | ||
| Equity | 577,396,816 | 97,825,117 | 675,221,933 | 533,692,011 | 110,311,163 | 644,003,173 | ||
| – share capital | 51,340,540 | 22,360,852 | 73,701,392 | 51,340,540 | 22,360,852 | 73,701,392 | ||
| – share premium | 40,344,978 | 13,067,907 | 53,412,884 | 40,344,978 | 13,067,907 | 53,412,884 | ||
| – reserves from profit | 359,048,752 | 45,513,891 | 404,562,643 | 322,348,752 | 45,513,891 | 367,862,643 | ||
| – fair value reserve | 52,861,390 | 3,023,244 | 55,884,634 | 49,399,362 | 10,002,717 | 59,402,079 | ||
| – net profit brought forward | 43,310,026 | 7,634,805 | 50,944,831 | 46,207,250 | 14,319,286 | 60,526,536 | ||
| – net profit for the year | 30,491,131 | 6,224,418 | 36,715,549 | 24,051,129 | 5,046,510 | 29,097,639 | ||
| Subordinated liabilities | 49,471,831 | 0 | 49,471,831 | 49,423,693 | 0 | 49,423,693 | ||
| Insurance technical provisions | 696,332,340 | 1,044,040,846 | 1,740,373,186 | 671,257,573 | 1,079,057,809 | 1,750,315,382 | ||
| – unearned premiums | 245,629,454 | 388,396 | 246,017,850 | 234,785,484 | 405,332 | 235,190,816 | ||
| – mathematical provisions | 0 | 1,008,319,155 | 1,008,319,155 | 0 | 1,041,557,084 | 1,041,557,084 | ||
| – claims provisions | 425,072,536 | 21,494,719 | 446,567,255 | 410,567,439 | 19,692,182 | 430,259,621 | ||
| – other insurance technical provisions | 25,630,350 | 13,838,576 | 39,468,926 | 25,904,650 | 17,403,211 | 43,307,861 | ||
| Insurance technical provisions for unit-linked insurance contracts | 0 | 540,135,052 | 540,135,052 | 0 | 448,726,097 | 448,726,097 | ||
| Employee benefits | 10,763,216 | 2,079,089 | 12,842,305 | 10,820,648 | 2,252,716 | 13,073,364 | ||
| Other provisions | 342,266 | 16,714 | 358,980 | 658,257 | 111,700 | 769,957 | ||
| Deferred tax liabilities | 973,178 | 3,239,555 | 4,212,733 | 11,833,573 | 9,914,340 | |||
| Other financial liabilities | 1,690,586 | 0 | 1,690,586 | 1,633,896 | 0 | 1,633,896 | ||
| Operating liabilities | 28,724,774 | 6,136,780 | 34,861,554 | 26,962,627 | 7,015,144 | 33,977,772 | ||
| – liabilities from direct insurance operations | 4,053,234 | 6,129,711 | 10,182,945 | 3,633,281 | 7,003,623 | 10,636,904 | ||
| – liabilities from reinsurance and co-insurance operations | 24,671,540 | 7,069 | 24,678,609 | 19,812,663 | 11,521 | 19,824,185 | ||
| – current tax liabilities | 0 | 0 | 0 | 3,516,683 | 0 | 3,516,683 | ||
| Lease liabilities | 4,643,844 | 0 | 4,643,844 | 3,675,805 | 0 | 3,675,805 | ||
| Other liabilities | 54,671,134 | 11,119,071 | 65,790,206 | 40,000,744 | 5,866,363 | 45,867,107 |
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 December 2021 | 31 December 2020 |
|---|---|---|
| Balance sheet total (without offsetting) | 3,129,602,210 | 3,013,214,159 |
| Mutual receivables and liabilities | -10,658,116 | -5,479,243 |
| Deferred tax assets and liabilities | 0 | -12,216,751 |
| Offset balance | 3,118,944,094 | 2,995,518,165 |
| in EUR | 2021 | 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NON-LIFE | LIFE | TOTAL | NON-LIFE | LIFE | TOTAL | |||||
| Net premium income | 411,222,504 | 187,532,496 | 598,755,000 | 410,209,492 | 173,658,354 | 583,867,846 | ||||
| – gross written premium | 606,009,493 | 188,340,610 | 794,350,103 | 544,787,178 | 174,468,690 | 719,255,868 | ||||
| – ceded written premium | -187,144,606 | -825,143 | -187,969,749 | -137,136,826 | -797,378 | -137,934,204 | ||||
| – change in unearned premium reserve | -7,642,383 | 17,029 | -7,625,354 | 2,559,140 | -12,958 | 2,546,182 | ||||
| Income from investments in subsidiaries and associates | 8,179,885 | 0 | 8,179,885 | 302,643 | 0 | 302,643 | ||||
| – profit on equity investments accounted for using the equity method | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| – other income from investments in subsidiaries and associates | 8,179,885 | 0 | 8,179,885 | 302,643 | 0 | 302,643 | ||||
| Income from investments | 14,196,067 | 101,416,831 | 115,612,898 | 27,042,218 | 62,139,416 | 89,181,634 | ||||
| – interest income calculated using the effective interest method | 4,517,587 | 15,168,297 | 19,685,884 | 6,933,637 | 19,000,163 | 25,933,800 | ||||
| – gains on disposals | 5,599,009 | 9,289,495 | 14,888,504 | 16,293,611 | 20,994,547 | 37,288,158 | ||||
| – other income from investments | 4,079,471 | 76,959,039 | 81,038,510 | 3,814,970 | 22,144,706 | 25,959,676 | ||||
| Other income from insurance operations | 40,177,409 | 5,209,624 | 45,387,033 | 34,556,277 | 3,553,752 | 38,110,029 | ||||
| – fees and commission income | 32,989,482 | 5,206,895 | 38,196,377 | 26,528,102 | 3,552,789 | 30,080,891 | ||||
| – other income from insurance operations | 7,187,927 | 2,729 | 7,190,656 | 8,028,175 | 963 | 8,029,138 | ||||
| Other income | 7,933,559 | 892,287 | 8,825,846 | 7,298,148 | 574,437 | 7,872,585 | ||||
| Net claims incurred | 207,492,094 | 157,645,131 | 365,137,225 | 225,006,212 | 150,330,735 | 375,336,947 | ||||
| – gross claims settled | 252,725,831 | 156,142,551 | 408,868,382 | 258,037,807 | 150,240,333 | 408,278,140 | ||||
| – reinsurers’ share | -35,569,203 | -249,755 | -35,818,958 | -31,446,853 | -242,236 | -31,689,089 | ||||
| – changes in claims provisions | -9,664,534 | 1,752,335 | -7,912,199 | -1,584,742 | 332,638 | -1,252,104 | ||||
| Change in other insurance technical provisions (excluding ULI) | -161,262 | -13,827,965 | -13,989,227 | -399,454 | 13,849,410 | 13,449,956 | ||||
| Change in insurance technical provisions for unit-linked insurance contracts | 0 | 91,860,583 | 91,860,583 | 0 | 13,270,367 | 13,270,367 | ||||
| Expenses for bonuses and discounts | 10,490,736 | 0 | 10,490,736 | 16,029,498 | 0 | 16,029,498 | ||||
| Operating expenses | 134,499,756 | 35,835,110 | 170,334,866 | 124,141,249 | 31,763,368 | 155,904,617 | ||||
| – acquisition costs | 98,861,653 | 25,406,907 | 124,268,560 | 91,712,332 | 21,856,103 | 113,568,435 | ||||
| – other operating costs | 35,638,103 | 10,428,203 | 46,066,306 | 32,428,917 | 9,907,265 | 42,336,182 | ||||
| Expenses from investments in subsidiaries and associates | 1,087,047 | 0 | 1,087,047 | 2,264,409 | 1,665,987 | 3,930,396 | ||||
| – loss on investments accounted for using the equity method | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| – other expenses from financial assets and liabilities | 1,087,047 | 0 | 1,087,047 | 2,264,409 | 1,665,987 | 3,930,396 | ||||
| Expenses from investments | 5,475,499 | 12,891,188 | 18,366,687 | 7,053,203 | 18,622,070 | 25,675,273 | ||||
| – loss on impairment of investments | 0 | 0 | 0 | 1,562,127 | 70,224 | 1,632,351 | ||||
| – loss on disposal of investments | 1,691,092 | 5,178,925 | 6,870,017 | 1,284,563 | 4,434,620 | 5,719,183 | ||||
| – other expenses from investments | 3,784,407 | 7,712,263 | 11,496,670 | 4,206,513 | 14,117,226 | 18,323,739 | ||||
| Other insurance expenses | 24,354,804 | 943,693 | 25,298,497 | 22,918,916 | 1,389,122 | 24,308,038 | ||||
| Other expenses | 19,932,095 | 2,553,542 | 22,485,637 | 17,703,408 | 2,656,271 | 20,359,679 | ||||
| – expenses from financing | 2,276,328 | 1,564 | 2,277,892 | 2,446,016 | 132,930 | 2,578,946 | ||||
| – other expenses | 17,655,767 | 2,551,978 | 20,207,745 | 15,257,392 | 2,523,341 | 17,780,733 | ||||
| Profit before tax | 78,538,655 | 7,149,956 | 85,688,611 | 64,691,337 | 6,378,629 | 71,069,966 | ||||
| Income tax expense | 11,347,522 | 925,540 | 12,273,062 | 11,740,208 | 1,332,119 | 13,072,327 | ||||
| NET PROFIT FOR THE PERIOD | 67,191,133 | 6,224,416 | 73,415,549 | 52,951,129 | 5,046,510 | 57,997,639 |
| in EUR | 2021 | 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NON-LIFE | LIFE | TOTAL | NON-LIFE | LIFE | TOTAL | |||||||
| Comprehensive income by business segments | 67,191,131 | 6,224,418 | 73,415,549 | 52,951,129 | 5,046,510 | 57,997,639 | ||||||
| Other comprehensive income after tax | 3,437,170 | -6,984,207 | -3,547,037 | 1,851,399 | 3,673,860 | 5,525,259 | ||||||
| Items which will not be transferred in P\&L in future periods | 138,303 | 26,408 | 164,711 | -238,333 | -44,743 | -283,076 | ||||||
| Actuarial gains and losses related to post-employment benefits on retirement | 138,303 | 26,408 | 164,711 | -238,333 | -44,743 | -283,076 | ||||||
| Tax on items which will not be transferred in P\&L | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
| Items which could be transferred to P\&L in future periods | 3,298,867 | -7,010,615 | -3,711,748 | 2,089,732 | 3,718,603 | 5,808,335 | ||||||
| Fair value gains/losses on available-for-sale financial assets | 4,072,638 | -36,752 | 1 | -32,679,481 | 2,579,916 | 21,846,162 | ||||||
| – net gains/losses recognized directly in fair value reserve | 12,380,157 | -25,942,976 | -13,562,819 | 10,140,738 | 30,176,808 | 40,317,546 | ||||||
| – transfers from fair value reserve to income statement | -8,307,519 | -10,809,143 | -19,116,662 | -7,560,822 | -8,330,646 | -15,891,468 | ||||||
| Liabilities from insurance contracts with DPF | 0 | 23,304,304 | 23,304,304 | 0 | -14,238,050 | -14,238,050 | ||||||
| Tax on other comprehensive income | -773,771 | 6,437,200 | 5,663,429 | -490,184 | -3,889,509 | -4,379,693 | ||||||
| COMPREHENSIVE INCOME OR LOSS FOR THE YEAR AFTER TAX | 70,628,301 | -759,789 | 69,868,512 | 54,802,528 | 8,720,370 | 63,522,898 |
| In EUR | Triglav Group | 2021 | NON-LIFE | LIFE | HEALTH | NON-INSURANCE | TOTAL |
|---|---|---|---|---|---|---|---|
| Investments in intangible assets | 10,868,526 | 5,492,221 | 51,503 | 689,454 | 17,101,703 | ||
| Investments in property, plant and equipment | 4,383,310 | 222,963 | 463,851 | 543,795 | 5,613,921 | ||
| Investments in investment property | 633,222 | 10,258 | 0 | 942,371 | 1,585,851 |
| In EUR | Triglav Group | 2020 | NON-LIFE | LIFE | HEALTH | NON-INSURANCE | TOTAL |
|---|---|---|---|---|---|---|---|
| Investments in intangible assets | 4,954,740 | 2,299,681 | 199,834 | 284,621 | 7,738,876 | ||
| Investments in property, plant and equipment | 7,368,606 | 167,856 | 966,536 | 449,433 | 8,952,431 | ||
| Investments in investment property | 384,677 | 0 | 0 | 2,261,859 | 2,646,536 |
Expense s in Section 4.12.
The values of purchased intangible assets, property, plant and equipment and investment property by business segment are shown in the table below:
| Zavarovalnica Triglav | 2021 | NON-LIFE | LIFE | TOTAL |
|---|---|---|---|---|
| ADDITIONAL DISCLOSURES FROM THE STATEMENT OF FINANCIAL POSITION | Investments in intangible assets | 10,012,022 | 5,434,848 | 15,446,870 |
| Investments in property, plant and equipment | 2,424,416 | 148,325 | 2,572,740 | |
| Investments in investment property | 631,433 | 10,258 | 641,690 | |
| ADDITIONAL DISCLOSURES FROM THE INCOME STATEMENT | Depreciation charge for the current year | -10,567,162 | 2,572,023 | -13,139,185 |
| Depreciation of right of use assets | -967,958 | -218,634 | -1,186,592 | |
| Expenses from the impairment of premium and subrogation receivables | -9,712,692 | -3,818 | -9,716,510 | |
| Income from reversal of impairment of receivables | 8,610,007 | 0 | 8,610,007 | |
| Expenses from impairment of investment property | 0 | 0 | 0 | |
| Expenses from impairment of other receivables | -62,736 | 0 | -62,736 | |
| Income from reversal of impairment of other receivables | 0 | 44,413 | 44,413 |
| ADDITIONAL DISCLOSURES FROM THE STATEMENT OF FINANCIAL POSITION | Investments in intangible assets | 3,850,496 | 2,242,113 | 6,092,609 |
|---|---|---|---|---|
| Investments in property, plant and equipment | 4,492,614 | 230,920 | 4,723,534 | |
| Investments in investment property | 288,439 | 0 | 288,439 | |
| ADDITIONAL DISCLOSURES FROM THE INCOME STATEMENT | Depreciation charge for the current year | -10,056,448 | -2,107,814 | -12,164,262 |
| Depreciation of right of use assets | -918,639 | -205,691 | -1,124,330 | |
| Expenses from the impairment of premium and subrogation receivables | -11,370,526 | 0 | -11,370,526 | |
| Income from reversal of impairment of receivables | 8,332,010 | 54,943 | 8,386,953 | |
| Expenses from impairment of property, plant and equipment | -653,340 | 0 | -653,340 | |
| Expenses from impairment of other receivables | -110,183 | -1,428 | -111,611 | |
| Income from reversal of impairment of other receivables | 0 | 70,590 | 72,340 |
The accounting policies used in the preparation of the consolidated and separate financial statements are consistent with those of the consolidated and separate financial statements of Zavarovalnica Triglav for the financial year ended 31 December 2020, except for the new or amended standards and interpretations effective for annual periods beginning on or after 1 January 2021, which are presented below.
The following amendments to existing standards issued by the International Accounting Standards Board (IASB) and adopted by the EU are effective for the current reporting period:
Amendments relate to the Interest Rate Benchmark Reform (Phase 2) and apply to annual periods beginning on or after 1 January 2021.
Amendments relate to modifications of financial assets, financial liabilities and lease liabilities, specific hedge accounting requirements and disclosure requirements under IFRS 7 and accompany the amendments relating to hedge accounting and its modifications:
direct consequence of the IBOR reform and made on an economically equivalent basis. These modifications are accounted for by updating the effective interest rate. All other modifications are accounted for using the current IFRS requirements. A similar practical expedient is proposed for lessee accounting applying IFRS 16.
The IASB also amended IFRS 4 to require insurers that apply the temporary exemption from IFRS 9 to apply the amendments in accounting for modifications directly required by IBOR reform.
Amendments refer to COVID-19-related rent concessions beyond 30 June 2021 and are effective from 1 April 2021 for annual periods beginning on or after 1 January 2021. Amendments extend the application period of the practical expedient under IFRS 16 by one year. The relief was extended by one year to cover rent concessions that reduce only lease payments due on or before 30 June 2022.
Amendments relate to the extension of the temporary exemption from the application of IFRS 9. They change the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments, so that entities would be required to apply IFRS 9 for annual periods beginning on or after 1 January 2023.
The adopted amendments did not have any impact on the consolidated and separate financial statements of Zavarovalnica Triglav.
At the date of authorisation of these financial statements, the following amendments to existing standards were issued by the IASB and adopted by the EU but which are not yet effective:
Amendments are effective for annual periods beginning on or after 1 January 2022 and relate to proceeds before intended use. Amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss.
Amendments are effective for annual periods beginning on or after 1 January 2022 and relate to the reference to the conceptual framework with amendment to IFRS 3.
These amendments:
The new accounting standard is effective for annual periods beginning on or after 1 January 2023. The new standard requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts.
the standard and provide additional reliefs in the first-time application of IFRS 17.
Amendments result from the annual improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) primarily with a view to removing inconsistencies and clarifying wording and are effective for annual periods beginning on or after 1 January 2022. Amendments to IFRS 16 relate only to the illustrative example, so no effective date is stated.
These amendments to standards:
The consolidated and separate financial statements of Zavarovalnica Triglav will be significantly affected by the new IFRS 17.
Users of Zavarovalnica Triglav’s financial statements will perceive the changes introduced by IFRS 17 primarily in that the insurance companies’ financial statements will no longer disclose premium income and claims incurred; instead, expected profit from insurance contracts will be disclosed. This is contractual service margin (CSM), calculated based on expected inflows (premiums) and outflows (claims and other directly attributable costs), taking into account the time value of money and risk adjustment (i.e. uncertainty regarding the amount and timing of inflows and outflows). The CSM calculated in this way will be recognised immediately upon issuing the insurance contract or upon its entry into force as a liability of the insurance company, and will be released to profit or loss during the entire term of the contract (regardless of when the premium was written or paid). The amendment to the presentation of the financial statements will also affect performance indicators. Currently, the Company also measures its performance through written premium (which is also the basis for measuring the market share) and the combined ratio.
The financial impact on the financial statements cannot be commented on at this time, as the overall impact of the transition to IFRS 17 and at the same time to IFRS 9 is still being assessed. It is expected that the amount and volatility of profit or loss may be significantly affected by the change in assumptions in the valuation of long-term life insurance contracts. With regard to non-life insurance, it is expected that the valuation of reinsurance contracts will have the greatest impact on the Company’s profit or loss.
At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the International Accounting Standards Board (IASB) except for the following new standards and amendments to existing standards.
This standard was published by the International Accounting Standards Board (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. However, the European Commission has decided not to begin the process of endorsing this interim standard until its final version has been issued.
Amendments are effective for annual periods beginning on or after 1 January 2023 and relate to the classification of liabilities as current or non-current.
Amendments provide a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. Amendments to IAS 1 issued by the IASB on 15 July 2020 defer the effective date by one year to annual periods beginning on or after 1 January 2023.
Amendments are effective for annual periods beginning on or after 1 January 2023 and relate to disclosures of accounting policies.
Amendments require entities to disclose their material accounting policies rather than their significant accounting policies and provide guidance and examples to help preparers in deciding which accounting policies to disclose in their financial statements.
Amendments are effective for annual periods beginning on or after 1 January 2023 and relate to the definition of accounting estimates.
Amendments focus on accounting estimates and provide guidance on how to distinguish between accounting policies and accounting estimates.
Amendments are effective for annual periods beginning on or after 1 January 2023 and address deferred tax related to assets and liabilities arising from a single transaction.
According to amendments, the initial recognition exemption does not apply to transactions in which both deductible and taxable temporary differences arise on initial recognition that result in the recognition of equal deferred tax assets and liabilities.
Amendments deal with the sale or contribution of assets between an investor and its associate or joint venture, and further amendments. They arise from 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 effective date of amendments is deferred indefinitely until the research project on the equity method has been concluded.
Amendments relate to the initial application of IFRS 17 and IFRS 9 in terms of comparative information. It is a narrow-scope amendment to the transition requirements of IFRS 17 for entities that apply IFRS 17 and IFRS 9 at the same time.
Amendments are effective for annual periods beginning on or after 1 January 2023.
The management anticipates that the adoption of these new standards and amendments to existing standards will have no material impact on the Company’s separate and consolidated financial statements in the period of initial application.
Hedge accounting for the financial assets and liabilities portfolio, the principles of which have not been adopted by the EU, remains unregulated.
The management estimates that the application of hedge accounting for financial assets and liabilities in accordance with IAS 39 Financial Instruments: Recognition and Measurement would not have a material effect on the Company’s separate and consolidated financial statements if applied at the balance sheet date.
There were no changes in accounting policies in 2021.
In 2021, the Company continued to apply the temporary exemption from the application of IFRS 9. Due to the adoption of the new standard that addresses insurance contracts, IFRS 17, the standard may be applied from 1 January 2023. The deferral condition is that the carrying amount of liabilities arising from the insurance business is at least 90% of total carrying amount of liabilities. The fulfillment of the conditions was verified as at 31 December 2015. The calculation is shown in the table below. There have been no changes since 31 December 2015 that would significantly impact the fulfillment of the conditions.
| in EUR | Triglav Group | Zavarovalnica Triglav | ||||
|---|---|---|---|---|---|---|
| 31 December 2015 | 31 December 2015 | |||||
| Insurance technical provisions | 2,600,442,123 | 2,053,864,286 | ||||
| Total liabilities | 2,789,412,299 | 2,154,872,319 | ||||
| Ratio of insurance liabilities to total liabilities | 93% | 95% |
The table below presents an analysis of the fair value of financial assets at the end of the reporting period and the corresponding change in fair value during the reporting period. Financial assets are broken down into assets whose contractual cash flows are solely payments of principal and interest (SPPI) on the principal amounts outstanding, excluding any financial assets held for trading, and all other financial assets.
| Assets whose contractual cash flows are solely payments of principal and interest on the principal amounts outstanding | Triglav Group | Fair value 1 January 2021 | Fair value 31 December 2021 | Fair value 1 January 2021 | Fair value 31 December 2021 |
|---|---|---|---|---|---|
| Debt securities | 2,581,853,541 | 2,504,048,741 | 0 | 42,751,390 | |
| Equity securities | 0 | 0 | 251,365,744 | 360,707,903 | |
| Derivatives | 0 | 0 | 113,301 | 20,317 |
| Loans and deposits | 76,208,718 | 74,170,926 | 0 | 0 |
|---|---|---|---|---|
| Cash and cash equivalents | 81,899,664 | 82,321,630 | 0 | 0 |
| Total | 2,739,961,923 | 2,660,541,297 | 251,479,045 | 403,479,609 |
in EUR
Assets whose contractual cash flows are solely payments of principal and interest on the principal amounts outstanding
| Fair value | 1 January 2021 | Fair value | 31 December 2021 | ||
|---|---|---|---|---|---|
| Debt securities | 1,860,111,108 | 1,743,950,017 | 19,399,127 | 25,504,977 | |
| Equity securities | 0 | 0 | 113,586,570 | 204,009,208 | |
| Derivatives | 0 | 0 | 113,301 | 20,317 | |
| Loans and deposits | 27,542,024 | 24,470,029 | 3,654,860 | 3,278,362 | |
| Cash and cash equivalents | 18,914,182 | 13,912,991 | 0 | 0 | |
| Total | 1,906,567,313 | 1,782,333,038 | 136,753,858 | 232,812,864 |
in EUR
Ratings of assets whose cash flows are solely payments of principal and interest on the principal amounts outstanding
| Triglav Group | Unrated | AAA | A | A/A | BBB | BB/B | Total |
|---|---|---|---|---|---|---|---|
| Debt securities | 43,972,345 | 438,921,752 | 1,054,713,184 | 789,294,818 | 185,667,718 | 2,512,569,818 | |
| Loans and deposits | 67,296,239 | 0 | 0 | 1,622,647 | 6,079,254 | 74,998,140 | |
| Cash and cash equivalents | 44,224,762 | 0 | 4,696 | 37,469,404 | 622,768 | 82,321,630 | |
| Total | 155,493,346 | 438,921,752 | 1,054,717,881 | 828,386,869 | 192,369,740 | 2,669,889,588 |
in EUR
Ratings of assets whose cash flows are solely payments of principal and interest on the principal amounts outstanding
| Zavarovalnica Triglav | Unrated | AAA | A | A/A | BBB | BB/B | Total | |
|---|---|---|---|---|---|---|---|---|
| Debt securities | 22,851,801 | 361,651,765 | 842,738,777 | 459,428,600 | 49,868,751 | 1,736,539,694 | ||
| Loans and deposits | 24,816,483 | 0 | 0 | 0 | 0 | 24,816,483 | ||
| Cash and cash equivalents | 1,064,256 | 0 | 4,696 | 12,844,039 | 0 | 13,912,991 | ||
| Total | 48,732,540 | 361,651,765 | 842,743,473 | 472,272,638 | 49,868,751 | 1,775,269,168 |
The table below shows the fair value and carrying amount of assets whose contractual cash flows are solely payments of principal and interest on the principal amounts outstanding and for which the Group determined that their credit risk was not low. The carrying amount is measured in accordance with IAS 39 prior to any impairment adjustment of assets measured at amortised cost.
| Assets whose contractual cash flows are solely payments of principal and interest and do not have a low credit risk | Triglav Group | ||
|---|---|---|---|
| Fair value | Carrying amount | ||
| Debt securities | 229,641,737 | 229,640,063 | |
| Loans and deposits | 72,569,993 | 73,375,494 | |
| Cash and cash equivalents | 44,847,529 | 44,847,529 | |
| Total | 347,059,260 | 347,863,086 |
| Assets whose contractual cash flows are solely payments of principal and interest and do not have a low credit risk | Zavarovalnica Triglav | |||
|---|---|---|---|---|
| Fair value | Carrying amount | |||
| Debt securities | 72,680,913 | 72,720,552 | ||
| Loans and deposits | 24,470,029 | 24,816,483 | ||
| Cash and cash equivalents | 1,064,256 | 1,064,256 |
| in EUR | Triglav Group |
|---|---|
| Goodwill | |
| Deferred acquisition cost |
| Licences and software | Intangible assets in course of acquisition | Total COST | ||||
|---|---|---|---|---|---|---|
| As at 1 January 2020 | 10,413,312 | 50,774,756 | 1,813,448 | 86,234,883 | 4,779,537 | 154,015,936 |
| – transfer in use | 0 | 0 | 0 | 5,185,569 | -5,185,569 | 0 |
| – purchases | 0 | 0 | 0 | 3,891,727 | 3,847,149 | 7,738,876 |
| – disposals | 0 | 0 | 0 | -1,076,033 | -182,941 | -1,258,974 |
| – impairment | 0 | 0 | 0 | -2,200,025 | 0 | -2,200,025 |
| – increase (net value) | 0 | 1,932,946 | 0 | -217,860 | 0 | 1,715,086 |
| – transfer to property, plant and equipment | 0 | 0 | 0 | -53,835 | 0 | -53,835 |
| – exchange rate difference | 0 | -51,729 | 0 | -76,794 | -595 | -129,118 |
| As at 31 December 2020 | 10,413,312 | 52,655,972 | 1,595,588 | 91,905,492 | 3,257,581 | 159,827,946 |
| – transfer in use | 0 | 0 | 0 | 2,400,471 | -2,400,471 | 0 |
| – purchases | 0 | 0 | 0 | 14,390,973 | 2,710,730 | 17,101,703 |
| – disposals | 0 | 0 | 0 | -1,705,072 | 0 | -1,705,072 |
| – decrease (net value) | 0 | 422,546 | 0 | -1,293,306 | 0 | -870,760 |
| – other changes | 0 | 0 | 0 | 2,200,000 | 0 | 2,200,000 |
| – exchange rate difference | 0 | 26,445 | 0 | 29,139 | 0 | 55,776 |
| As at 31 December 2021 | 10,413,312 | 53,104,963 | 302,282 | 109,221,003 | 3,568,032 | 176,609,593 |
| As at 1 January 2020 | 0 | 0 | 0 | -52,290,206 | 0 | -52,290,206 |
|---|---|---|---|---|---|---|
| – current year amortisation | 0 | 0 | 0 | -8,903,702 | 0 | -8,903,702 |
| – disposals | 0 | 0 | 0 | 834,249 | 0 | 834,249 |
| – impairment | 0 | 0 | 0 | 1,416,861 | 0 | 1,416,861 |
| – transfer to property, plant and equipment | 0 | 0 | 0 | 29,323 | 0 | 29,323 |
| – exchange rate difference | 0 | 0 | 0 | 61,011 | 0 | 61,011 |
| As at 31 December 2020 | 0 | 0 | 0 | -58,852,464 | 0 | -58,852,464 |
| – current year amortisation | 0 | 0 | 0 | -10,018,359 | 0 | -10,018,359 |
| – disposals | 0 | 0 | 0 | 1,669,635 | 0 | 1,669,635 |
| – other changes | 0 | 0 | 0 | -2,200,000 | 0 | -2,200,000 |
| – exchange rate difference | 0 | 0 | 0 | -23,987 | 0 | -23,987 |
| As at 31 December 2021 | 0 | 0 | 0 | -69,425,175 | 0 | -69,425,175 |
| As at 31 December 2020 | 10,413,312 | 52,655,972 | 1,595,588 | 33,053,028 | 3,257,581 | 100,975,475 |
|---|---|---|---|---|---|---|
| As at 31 December 2021 | 10,413,312 | 53,104,963 | 302,282 | 39,795,828 | 3,568,032 | 107,184,415 |
Goodwill arises from the merger of Alta Skladi d.d. to Triglav Skladi, družba za upravljanje d.o.o. in 2019.
In verifying the value of goodwill as at 31 December 2021, the recoverable amount of the cash-generating unit, i.e. Alta Skladi, was assessed. The recoverable amount was calculated using the discounted net cash flow method, taking into account estimated net cash flows for 2022–2028 and a discount rate of 11.99% (2020: 11.6%).
The calculated recoverable amount of goodwill exceeds its carrying amount, therefore no impairment of goodwill is required.
The Group has no intangible assets pledged as collateral for liabilities. The Group 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 amortisation rate used for software is 20%, and for other material rights it ranges between 1% and 20%. Amortisation rates did not change in 2021. The cost of amortisation of intangible assets is shown in the income statement in various items, as seen from the presentation of the distribution of costs by natural and functional groups in Section 4.12.
As at 31 December 2021, the Group also disclosed deferred acquisition costs under intangible assets. A change in deferred acquisition costs is recognised as a change in unearned premium as presented in Section 4.1.
Gains and losses on disposals of intangible assets and impairment expenses are disclosed in the income statement under the item “other income” or “other expenses”.
The Group has no intangible assets that are individually significant for the consolidated financial statements.
In 2021, the Group assessed the existence of possible signs of impairment of other intangible assets. No signs of impairment were identified.
| Deferred acquisition costs | Long-term deferred items | Licenses and software | Intangible assets in course of acquisition | Total | |
|---|---|---|---|---|---|
| COST | |||||
| As at 1 January 2020 | 37,132,120 | 1,595,164 | 53,888,544 | 2,903,514 | 95,519,344 |
| – transfer in use | 0 | 0 | 2,519,526 | -2,519,526 | 0 |
| – purchases | 0 | 0 | 3,123,231 | 2,969,378 | 6,092,609 |
| – disposal | 0 | 0 | -856,100 | 0 | -856,100 |
| – increase (net value) | 666,735 | -217,860 | 0 | 0 | 448,875 |
| As at 31 December 2020 | 37,798,855 | 1,377,305 | 58,675,200 | 3,353,370 | 101,204,730 |
| – transfer in use | 0 | 0 | 1,908,177 | -1,908,177 | 0 |
| – purchases | 0 | 0 | 13,930,534 | 1,516,337 | 15,446,870 |
| – disposal | 0 | 0 | -365,304 | 0 | -365,304 |
| – decrease (net value) | -2,753,006 | -1,075,021 | 0 | 0 | -3,828,027 |
| As at 31 December 2021 | 35,045,849 | 302,283 | 74,148,609 | 2,961,525 | 112,458,267 |
| As at 1 January 2020 | 0 | 0 | -33,595,071 | 0 | -33,595,071 |
|---|---|---|---|---|---|
| – amortisation | 0 | 0 | -6,055,615 | 0 | -6,055,615 |
| – dispos al | 0 | 0 | 843,538 | 0 | 843,538 |
|---|---|---|---|---|---|
| As at 31 December 2020 | 0 | 0 | -38,807,148 | 0 | -38,807,148 |
| – amortisation | 0 | 0 | -6,986,368 | 0 | -6,986,368 |
| – dispos al | 0 | 0 | 357,276 | 0 | 357,276 |
| As at 31 December 2021 | 0 | 0 | -45,436,242 | 0 | -45,436,242 |
| As at 31 December 2020 | 37,798,855 | 1,377,305 | 19,868,052 | 3,353,370 | 62,397,579 |
|---|---|---|---|---|---|
| As at 31 December 2021 | 35,045,849 | 302,283 | 28,712,367 | 2,961,525 | 67,022,027 |
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. Trade payables related to the purchase of intangible assets as at 31 December 2021 amount to EUR 8,255,490 (31 December 2020: EUR 710,420). Intangible assets owned by the Company were not obtained with state support.
The amortisation rate used for software is 20%, and for other material rights it ranges between 1% and 20%. Amortisation rates did not change in 2021. The cost of amortisation for the year is shown in the income statement in various items, as seen from the presentation of the distribution of costs by natural and functional groups in Section 4.12.
As at 31 December 2021, the Company also discloses deferred acquisition costs under intangible assets. A change in deferred acquisition costs is recognised as a change in unearned premium as presented in Section 4.1.
Gains and losses on disposal of intangible assets are disclosed in the income statement under the item “other income” or “other expenses”.
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 14.68% of total cost of property, plant and equipment used by the Company.
| in EUR | Triglav Group | Land | Buildings | Equipment | PP\&E in course of acquisition | Total |
|---|---|---|---|---|---|---|
| COST | As at 1 January 2020 | 11,507,705 | 127,033,164 | 63,783,402 | 3,263,482 | 205,587,753 |
| – transfer in use | 0 | 2,733,048 | 1,809,846 | -4,542,894 | 0 | |
| – purchases | 0 | 800,756 | 4,174,810 | 3,976,865 | 8,952,431 | |
| – disposals | 0 | -1,142,229 | -2,448,580 | 0 | -3,590,809 | |
| – transfer from investment property | 0 | 386,384 | 0 | 94,011 | 480,395 | |
| – transfer from intangible assets | 0 | 0 | 53,835 | 0 | 53,835 | |
| – impairment | 0 | -240,833 | -77,764 | 0 | -318,597 | |
| – exchange rate differences | -66,506 | -249,420 | -70,803 | -467 | -387,196 | |
| As at 31 December 2020 | 11,441,199 | 129,320,870 | 67,224,746 | 2,790,997 | 210,777,812 | |
| – transfer in use | 356 | 1,072,533 | 878,613 | -1,951,502 | 0 | |
| – purchases | 17,810 | 601,893 | 3,398,405 | 1,595,813 | 5,613,921 | |
| – disposals | 0 | -950,733 | -4,019,548 | -477,221 | -5,447,502 | |
| – transfer to investment property | 0 | -1,099,725 | 0 | 0 | -1,099,725 |
| – impairment | 0 | 0 | -50,813 | 0 | -50,813 | |
|---|---|---|---|---|---|---|
| – exchange rate differences | 21,261 | 83,687 | 25,627 | 261 | 130,836 | |
| As at 31 December 2021 | 11,480,627 | 129,028,524 | 67,457,031 | 1,958,349 | 209,924,531 | |
| AC C U M U L AT E D D E P R E C I A T I O N | As at 1 January 2020 | 0 | -40,737,064 | -50,778,398 | 0 | -91,515,462 |
| – depreciation for the current year | 0 | -2,593,435 | -5,840,693 | 0 | -8,434,128 | |
| – disposals | 0 | 190,754 | 2,177,877 | 0 | 2,368,631 | |
| – transfer from intangible assets | 0 | 0 | -29,323 | 0 | -29,323 | |
| – impairment | 0 | -73,544 | 75,647 | 0 | 2,103 | |
| – exchange rate differences | 0 | 66,050 | 55,357 | 0 | 121,407 | |
| As at 31 December 2020 | 0 | -43,147,239 | -54,339,537 | 0 | -97,486,776 | |
| – depreciation for the current year | 0 | -2,490,231 | -6,135,989 | 0 | -8,626,220 | |
| – disposals | 0 | 395,142 | 4,105,071 | 0 | 4,500,213 | |
| – transfer to investment property | 0 | 334,888 | 2,634 | 0 | 337,522 | |
| – impairment | 0 | 0 | 50,092 | 0 | 50,092 | |
| – exchange rate differences | 0 | -24,243 | -19,907 | 0 | -44,150 | |
| As at 31 December 2021 | 0 | -44,931,684 | -56,337,635 | 0 | -101,269,319 |
| As at 31 December 2020 | 11,441,199 | 86,173,631 | 12,885,209 | 2,790,997 | 113,291,036 |
|---|---|---|---|---|---|
| As at 31 December 2021 | 11,480,627 | 84,096,840 | 11,119,396 | 1,958,349 | 108,655,212 |
The Group has no property, plant and equipment pledged as collateral for liabilities. The Group 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%. Amortisation rates did not change in 2021. The cost of depreciation of property, plant and equipment is shown in the income statement in various items, as seen from the presentation of the distribution of costs by natural and functional groups in Section 4.12.
Gains and losses on disposals of property, plant and equipment and impairment expenses of these assets are disclosed in the income statement under the item “other income” or “other expenses”.
In 2021, the Group assessed the existence of possible signs of impairment of land, buildings and equipment. No signs of impairment were identified.
The fair value of the Group's property, plant and equipment exceeds their carrying amount and is presented in more detail in Section 5.1.
The fair value of real property was determined based on valuations performed as at 30 September 2021 by an external certified real estate valuer in accordance with the guidelines described in Section 2.5.13. In the period from the valuation to the reporting date, there were no changes 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:
When using the income capitalisation method, the fair value of Slovenian real property was estimated using a discount rate ranging between 7.25% and 9.25% for commercial buildings and between 3.75% and 5.75% for residential buildings. The following assumptions were taken into account in the calculation of the capitalisation rate:
• the risk-free rate of return of 0.86 – 5.20%, taking into account the yield on a 10-year German government bond, the country risk premium and the current and projected inflation rate for the country in which real property is located;
• the real estate risk premium of 5.3 – 6.8%;
• the capital retention premium of 1.6% (in the case of an estimated age of office property of 60 years).
| Land | Buildings | Equipment | PP\&E in course of acquisition | Total | |
|---|---|---|---|---|---|
| As at 1 January 2020 | 5,857,377 | 80,490,677 | 40,479,762 | 358,472 | 127,186,288 |
| – transfer in use | 0 | 1,710,920 | 352,191 | -2,063,111 | 0 |
| – purchases | 0 | 187,057 | 2,225,321 | 2,311,156 | 4,723,534 |
| – disposal | 0 | -88,231 | -1,564,959 | 0 | -1,653,190 |
| – impairment | 0 | -169,599 | 0 | 0 | -169,599 |
| – transfer from investment property | 0 | 0 | 0 | 94,011 | 94,011 |
| As at 31 December 2020 | 5,857,377 | 82,130,823 | 41,492,315 | 700,529 | 130,181,047 |
| – transfer in use | 356 | 1,051,365 | 180,956 | -1,232,677 | 0 |
| – purchases | 17,810 | 73,634 | 1,718,145 | 763,152 | 2,572,740 |
| – disposal | 0 | -1,335 | -2,688,127 | 0 | -2,689,461 |
| As at 31 December 2021 | 5,875,545 | 83,254,487 | 40,703,289 | 231,004 | 130,064,326 |
| Land | Buildings | Equipment | Total | |
|---|---|---|---|---|
| As at 1 January 2020 | 0 | -27,485,944 | -31,394,660 | -58,880,604 |
| – depreciation for the current year | 0 | -1,377,931 | -3,765,355 | -5,143,285 |
| – disposal | 0 | 33,894 | 1,547,272 | 1,581,166 |
| – impairment | 0 | 37,131 | 0 | 37,131 |
| As at 31 December 2020 | 0 | -28,792,850 | -33,612,742 | -62,405,591 |
| – depreciation for the current year | 0 | -1,408,848 | -3,776,720 | -5,185,568 |
| – disposal | 0 | 362 | 2,669,782 | 2,670,145 |
| As at 31 December 2021 | 0 | -30,201,335 | -34,719,680 | -64,921,015 |
| Land | Buildings | Equipment | Total | |
|---|---|---|---|---|
| As at 31 December 2020 | 5,857,377 | 53,337,974 | 7,879,573 | 67,775,451 |
| As at 31 December 2021 | 5,875,545 | 53,053,152 | 5,983,609 | 65,143,307 |
The Company has no property, plant and equipment pledged as collateral for liabilities. The Company also has non-financial liabilities related to the purchase of property, plant and equipment.
As at 31 December 2021, trade payables for property, plant and equipment amounted to EUR 1,141,961 (31 December 2020: EUR 648,156).
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%. Amortisation rates did not change in 2021. The cost of amortisation for the year is shown in the income statement in various items, as seen from the presentation of the distribution of costs by natural and functional groups in Section 4.12.
Gains and losses on disposals of property, plant and equipment and impairment expenses of these assets are disclosed in the income statement under the item “other income” or “other expenses”.
Cost of fully depreciated assets still in use represents 19.12% of total cost of all assets used.
In 2021, the Company assessed the existence of possible signs of impairment of land, buildings and equipment. No signs of impairment were identified.
The fair value of the Company’s property, plant and equipment exceeds their carrying amount and is presented in more detail in Section 5.1.
| in EUR | Triglav Group | Land | Buildings | IP in course of acquisition | Total |
|---|---|---|---|---|---|
| COST | As at 1 January 2020 | 18,084,824 | 68,359,056 | 12,265,192 | 98,709,072 |
| – transfer in use | 0 | 596,568 | -596,568 | 0 | |
| – purchases | 15,155 | 115,758 | 2,515,623 | 2,646,536 |
| 2020 | 2021 | |
|---|---|---|
| disposals | -229,114 | -1,283,994 |
| transfer to property, plant and equipment | 0 | -480,395 |
| impairment | -34,184 | -725,342 |
| exchange rate difference | -2,655 | -9,607 |
| As at 31 December 2020 | 17,834,026 | 98,856,274 |
| transfer in use | 0 | 0 |
| purchases | 0 | 1,585,851 |
| disposals | -352,328 | -2,215,136 |
| transfer from property, plant and equipment | 0 | 1,099,725 |
| transfer to non-current assets | -2,631,840 | -3,145,268 |
| impairment | -2,130 | -12,306 |
| exchange rate difference | 458 | 2,191 |
| As at 31 December 2021 | 14,848,185 | 96,171,326 |
| 2020 | 2021 | |
|---|---|---|
| As at 1 January 2020 | -18,787,601 | |
| depreciation for the current year | -1,400,196 | |
| disposals | 279,580 | |
| impairment | 28,029 | |
| exchange rate difference | 1,712 | |
| As at 31 December 2020 | -19,878,474 | |
| depreciation for the current year | -1,335,886 | |
| disposals | 500,169 | |
| transfer from property, plant and equipment | -337,522 | |
| impairment | -7,966 | |
| exchange rate difference | -670 | |
| As at 31 December 2021 | -21,060,353 |
| 2020 | 2021 | |
|---|---|---|
| As at 31 December 2020 | 17,834,026 | 78,977,800 |
| As at 31 December 2021 | 14,848,185 | 75,110,973 |
The Group leases (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 indefinite period. Leases do not include contingent rents (variable lease payments). All income from investment property relates exclusively to leases or other associated costs and is disclosed in the income statement under “other income”. Expenses from investment property relate to amortisation and maintenance costs of investment property and are disclosed in the income statement under “other expenses”. The Group has no investment property pledged as collateral for liabilities. The Group also has no financial liabilities related to the purchase of investment property. The amortisation rates used for investment property range between 1.5% and 5%. Amortisation rates did not change in 2021. The cost of depreciation of property, plant and equipment is shown in the income statement in various items, as seen from the presentation of the distribution of costs by natural and functional groups in Section 4.12. Gains and losses on disposals of investment property and impairment expenses of these assets are disclosed in the income statement under the item “other income” or “other expenses”. In 2021, the Group assessed the existence of possible signs of impairment of investment property. No signs of impairment were identified. The fair value of the Group’s investment property exceeds its carrying amount and is presented in more detail in Section 5.1. The fair value of real property was determined based on valuations performed as at 30 September 2021 by an external certified real estate valuer in accordance with the guidelines described in Section 2.5.13. In the period from the valuation to the reporting date, there were no changes 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 7.25% and 9.25% for commercial buildings and between 3.75% and 5.75% for residential buildings. The following assumptions were taken into account in the calculation of the capitalisation rate:
- the risk-free rate of return taking into account the yield on a 10-year Slovenian government bond of 0.14%;
- the real estate risk premium of 5.3–6.8%;
- the capital retention premium of 1.6% (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 6.91% and 12.16%. The following assumptions were taken into account in the calculation of the capitalisation rate:
- the risk-free rate of return of 0.86–5.20%, taking into account the yield on a 10-year German government bond, the country risk premium and the current and projected inflation rate for the country in which real property is located;
- the real estate risk premium of 5.3–6.8%;
- the capital retention premium of 1.6% (in the case of an estimated age of office property of 60 years).
Land
| Buildings | IP in course of acquisition | Total | ||
| COST | ||||
| As at 1 January 2020 | 3,549,193 | 40,569,237 | 11,552,293 | 55,670,723 |
| – transfer in use | 0 | 353,320 | -353,320 | 0 |
| – purchases | 0 | 14,070 | 274,369 | 288,439 |
| – disposal | 0 | -272,654 | -5,989 | -278,643 |
| – impairment | 0 | -132,064 | -562,265 | -694,329 |
| – transfer to property, plant and equipment | 0 | 0 | -94,011 | -94,011 |
| As at 31 January 2020 | 3,549,193 | 40,531,909 | 10,811,077 | 54,892,179 |
| – transfer in use | 0 | 619,900 | -619,900 | 0 |
| – purchases | 0 | 21,950 | 619,741 | 641,690 |
| – disposal | -19,728 | -485,625 | 0 | -505,353 |
| As at 31 December 2021 | 3,529,464 | 40,688,133 | 10,810,918 | 55,028,516 |
Accumulated Depreciation
| As at 1 January 2020 | Depreciation | ||||
| 0 | -9,579,587 | 0 | -9,579,587 | ||
| – depreciation | 0 | -965,361 | 0 | -965,361 |
| – dispos al | 0 | 63,057 | 0 | 63,057 |
|---|---|---|---|---|
| – impairment | 0 | 40,990 | 0 | 40,990 |
| As at 31 December 2020 | 0 | -10,440,902 | 0 | -10,440,902 |
| – depreciation | 0 | -967,250 | 0 | -967,250 |
| – dispos al | 0 | 219,690 | 0 | 219,690 |
| As at 31 December 2021 | 0 | -11,188,461 | 0 | -11,188,461 |
| As at 31 December 2020 | 3,549,193 | 30,091,007 | 10,811,077 | 44,451,276 |
|---|---|---|---|---|
| As at 31 December 2021 | 3,529,464 | 29,499,672 | 10,810,918 | 43,840,055 |
Zavarovalnica Triglav leases (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 indefinite period. Leases do not include contingent rents (variable lease payments). All income from investment property relates exclusively to leases or other associated costs and is disclosed in the income statement under “other income”. Expenses from investment property relate to amortisation and maintenance costs of investment property and are disclosed in the income statement under “other expenses”. The Company has no investment property pledged as collateral for liabilities. The Company 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 amortisation rates used for investment property range between 1.5% and 5%. Amortisation rates did not change in 2021. The cost of depreciation of property, plant and equipment is shown in the income statement in various items, as seen from the presentation of the distribution of costs by natural and functional groups in Section 4.12. Gains and losses on disposal of investment property are disclosed in the income statement under the item “other income” or “other expenses”. In 2021, the Company assessed the existence of possible signs of impairment of investment property. No signs of impairment were identified. The fair value of the Company’s investment property exceeds its carrying amount and is presented in more detail in Section 5.1. The fair value of real property was determined in the same way as for the Group.
| in EUR | Triglav Group | Zavarovalnica Triglav |
|---|---|---|
| 2021 | 4,954,878 | 5,596,224 |
| 2020 | 6,519,268 | 5,577,256 |
| Sublease income | 94,255 | 56,692 |
| 2020 | 90,324 | 58,928 |
| in EUR | Triglav Group | Zavarovalnica Triglav | |
|---|---|---|---|
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
| Year 1 | 6,598,071 | 4,194,027 | |
| Year 2 | 6,065,580 | 3,885,191 | |
| Year 3 | 2,724,405 | 1,246,545 | |
| Year 4 | 1,182,994 | 818,800 | |
| Year 5 | 1,085,003 | 768,063 | |
| From year 5 | 730,220 | 473,802 | |
| TOTAL | 18,386,272 | 11,386,428 |
| in EUR | Triglav Group | Land and buildings | Vehicles | Other | Total |
|---|---|---|---|---|---|
| Carrying amount as at 1 January 2020 | 8,932,272 | 1,861,649 | 144,004 | 10,937,925 | |
| – addition | 1,878,175 | 589,883 | 13,142 | 2,481,200 | |
| – accumulated depreciation | -2,635,806 | -847,384 | -63,882 | -3,547,072 | |
| – modification | -749 | -2,454 | -12,742 | -15,945 | |
| – exchange rate difference | -56,960 | 11,452 | 10,611 | -34,897 | |
| Carrying amount as at 31 December 2020 | 8,116,932 | 1,613,146 | 91,133 | 9,821,211 | |
| – addition | 1,211,537 | 1,365,493 | 38,192 | 2,615,222 | |
| – accumulated depreciation | -2,792,093 | -752,043 | -39,735 | -3,583,871 | |
| – modification | 2,036,818 | -6,209 | -4,918 | 2,025,691 | |
| – exchange rate difference | 40,350 | 14,518 | -12 | 54,856 | |
| Carrying amount as at 31 December 2021 | 8,613,544 | 2,234,905 | 84,660 | 10,933,109 |
| Carrying amount as at 1 January 2020 | 2,935,474 | 1,149,548 | 21,294 | 4,106,316 |
|---|---|---|---|---|
| - addition | 194,896 | 539,327 | 13,142 | 747,365 |
| - accumulated depreciation | -658,654 | -452,562 | -13,114 | -1,124,330 |
| - modification | -105,212 | -36,223 | 0 | -141,435 |
| Carrying amount as at 1 January 2021 | 2,366,504 | 1,200,090 | 21,322 | 3,587,916 |
| - addition | 463,436 | 691,747 | 38,193 | 1,193,375 |
| - accumulated depreciation | -667,267 | -506,765 | -12,560 | -1,186,592 |
| - modification | 1,022,250 | -68,651 | 0 | 953,599 |
| Carrying amount as at 31 December 2021 | 3,184,921 | 1,316,422 | 46,954 | 4,548,298 |
The Group and the Company lease business premises, vehicles and other equipment used in their operations. Leases for business premises are usually concluded for an indefinite term, and leases for vehicles and other equipment for 1 to 5 years.
The Group and the Company also entered into some leases with lease terms of 12 months or less and leases of low-value equipment. Permitted exceptions to recognition apply to these leases.
To calculate the net present value of future 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. In valuing assets and liabilities from contracts concluded for an indefinite term, the new strategy period was taken into account when determining the lease term. The value of right-of-use assets increased by EUR 1.07 million.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| DEPRECIATION OF RIGHT OF USE ASSETS | 3,583,871 | 3,547,072 | 1,186,592 | 1,124,330 |
| Depreciation of rights to use land and buildings | 2,792,093 | 2,635,806 | 667,267 | 658,654 |
| Depreciation of rights to use vehicles | 752,043 | 847,384 | 506,765 | 452,562 |
| Depreciation of rights to use other assets | 39,735 | 63,882 | 12,560 | 13,114 |
| INTEREST EXPENSE ON LEASE LIABILITIES | 489,303 | 512,481 | 65,714 | 65,395 |
| OTHER LEASE EXPENSES | 572,507 | 665,939 | 430,026 | 433,825 |
| Short-term lease expenses | 84,236 | 81,677 | 1,678 | 15,849 |
| Low-value lease expenses | 488,271 | 584,262 | 428,348 | 417,976 |
| Payment for right of use assets | 3,945,755 | 3,944,465 | 1,230,260 | 1,147,971 |
There were no business combinations in the Triglav Group in 2021. All other changes in the Group in 2021 are described in Section 2.1.4.
In preparing the financial statements for 2021, it was assessed whether there were any changes in the assumptions related to the conditions applicable to the control of individual companies in any of the Group companies. There were no such changes.
Signs of impairment of investments in subsidiaries were assessed in 2021. 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 investments in subsidiaries in the amount of EUR 607 thousand was recognized in the Company’s separate financial statements under expenses from investments in associates, which relates to the impairment of investments in Triglav Penzisko društvo a.d., Skopje.
The following assumptions were taken into account to determine the recoverable amount of investments in subsidiaries:
| NO. | COMPANY | ADDRESS | TAX RATE (in %) | ACTIVITY | SHARE OF VOTING RIGHTS (in %) | BOOK VALUE (in EUR) | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Pozavarovalnica Triglav Re d.d. | Miklošičeva cesta 19, Ljubljana, Slovenia | 19 | Reinsurance | 100.00 | 9,750,752 | 100.00 | 100.00 | |
| 2 | Triglav, Zdravstvena zavarovalnica d.d. | Pristaniška ulica 10, Koper, Slovenia | 19 | Insurance | 100.00 | 3,735,886 | 100.00 | 100.00 | |
| 3 | Triglav INT d.o.o. | Dunajska cesta 22, Ljubljana, Slovenia | 19 | Holding company | 100.00 | 79,770,730 | 100.00 | 100.00 | |
| 4 | Triglav, pokojninska družba d.d. | Dunajska cesta 22, Ljubljana, Slovenia | 19 | Fund management | 100.00 | 9,965,340 | 100.00 | ||
| 5 | Triglav Upravljanje nepremičnin d.o.o. | Dunajska cesta 22, Ljubljana, Slovenia | 19 | Real estate management | 100.00 | 24,493,300 | 100.00 | ||
| 6 | Triglav Skladi d.o.o. | Slovenska cesta 54, Ljubljana, Slovenia | 19 | Fund management | 100.00 | 2,076,723 | 100.00 | 67.50 | |
| 7 | Triglav Avtoservis d.o.o. | Verovškova 60b, Ljubljana, Slovenia | 19 | Maintenance and repair of motor vehicle | 100.00 | 194,216 | 100.00 | ||
| 8 | Triglav Svetovanje d.o.o. | Ljubljanska cesta 86, Domžale, Slovenia | 19 | Insurance agency | 100.00 | 279,736 | 100.00 | ||
| 9 | Zavod Vse bo v redu | Miklošičeva cesta 19, Ljubljana, Slovenia | 19 | Institute for corporate social responsibility | 100.00 | 100,000 | 100.00 | ||
| 10 | Triglav penzisko društvo a.d., Skopje | Bulevar 8-mi septemvri 18, kat 2, Skopje, North Macedonia | 10 | Fund management | 1,558,000 | 100.00 | 100.00 | ||
| TOTAL | 131,924,683 | 132,337,466 |
The effect of re-measuring the fair value of investments in associates and joint ventures in the amount of EUR 3.5 million was recognised in the Company’s separate financial statements. The revaluation effect of EUR 4 million was recognised in other comprehensive income as an increase in fair value reserves, while an impairment of EUR 460 thousand was recognised in the income statement under expenses from investments in associates.
The following assumptions were taken into account in determining the fair value of investments in associates and joint ventures:
The effects of valuation using the equity method are disclosed under the items income and expenses from investments in the consolidated income statement. A summary of accounting information for the associates and the Group’s interests in these companies are shown in the tables below.
| COMPANY | ADDRESS | TAX RATE (in %) | ACTIVITY |
|---|---|---|---|
| Nama d.d. | Tomšičeva 1, Ljubljana, Slovenia | 19 | Retail trade |
| Triglav kod.o.o. | Ulica XXX. divizije 23, Nova Gorica, Slovenia | 19 | Insurance agency |
| TRIGAL, upravljanje naložb in svetovanje d.o.o. | Dunajska cesta 22, Ljubljana, Slovenia | 19 | Management of financial funds |
| Društvo za upravljanje EDF a.d. | Banja Luka | Kralja Petra I Karađorđevića 109/III | Banja Luka, Bosnia and Herzegovina | 10 | Fund management |
|---|---|---|---|---|---|
| Diagnostični center Bled d.o.o. | Pod Skalo 4 | Bled | Slovenija | 19 | Health |
| ZT SR d.o.o.* | Miklošičeva cesta 19 | Ljubljana | Slovenia | 19 | Business services |
| Alifenet d.o.o. | Dunajska cesta 22 | Ljubljana | Slovenia | 19 | Fund management |
Data for 2021 are unaudited. Data for 2020 are adjusted if the revised data were different from those published in the 2020 Annual Report.
*ZTSR d.o.o. was merged with Diagnostični center Bled d.o.o. in 2021.
| COMPANY | 2021 | 2020 | VALUE OF INVESTMENT (in EUR) | SHARE IN CAPITAL (in %) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Nama d.d. | 39.15 | 39.07 | 39.15 | 39.07 | 4,315,813 | 4,060,437 | 39.07 | 39.07 | ||
| Triglav k.o.d.o.o. | 38.47 | 38.47 | 38.47 | 38.47 | 18,125 | 17,202 | 38.47 | 38.47 | ||
| TRIGAL, upravljanje naložb in svetovanje d.o.o. | 49.90 | 49.90 | 49.90 | 49.90 | 10,704,506 | 8,544,558 | 49.90 | 49.90 | ||
| Društvo za upravljanje EDF a.d. | 34.00 | 34.00 | 34.00 | 34.00 | 439,970 | 450,150 | 0.00 | 0.00 | ||
| Diagnostični center Bled d.o.o. | 50.00 | - | 50.00 | - | 20,479,730 | - | 50.00 | - | ||
| ZT SR d.o.o.* | - | 50.00 | - | 50.00 | - | 15,092,166 | - | 50.00 | ||
| Allifene t d.o.o. | 23.58 | 23.58 | 23.58 | 23.58 | 73,202 | 73,202 | 23.58 | 23.58 | ||
| TOTAL | 36,031,346 | 28,237,714 | 41,693,997 | 31,337,951 |
| COMPANY | 2021 | 2020 | ||
|---|---|---|---|---|
| Nama d.d.* | 15,627,103 | 13,620,752 | 4,388,209 | 3,033,854 |
| Triglav k.o.d.o.o. | 163,574 | 120,804 | 80,945 | 40,576 |
| TRIGAL, upravljanje naložb in svetovanje d.o.o. | 22,463,968 | 17,604,699 | 137,388 | 193,803 |
| Društvo za upravljanje EDF a.d. | 1,390,960 | 1,348,705 | 46,825 | 36,334 |
| Diagnostični center Bled d.o.o.* | 44,373,702 | - | 18,380,231 | - |
| ZT SR d.o.o.* | - | 40,255,944 | - | 10,071,614 |
| *ZTSR d.o.o. was merged with Diagnostični center Bled d.o.o. in 2021. | ||||
| * For Nama d.d., Diagnostični center Bled d.o.o. and ZTSR d.o.o., the data from the consolidated financial statements of these companies are shown. |
Presented below are the condensed balance sheet and comprehensive income for material investments in associates.
| in EUR | Diagnostični center Bled d.o.o. | NAMA d.d. | TRIGAL d.o.o. | ZT SR d.o.o. |
|---|---|---|---|---|
| CONDENSED BALANCE SHEET | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
| Current assets | 7,436,396 | - | 6,512,098 | 5,725,161 |
| Current liabilities | 4,684,731 | - | 2,635,507 | 1,648,658 |
| Net current assets/liabilities | 2,751,665 | - | 3,876,591 | 4,076,503 |
| Non-current assets | 36,937,305 | - | 9,115,005 | 7,862,544 |
| Non-current liabilities | 13,695,500 | - | 1,752,702 | 1,385,196 |
| Net non-current assets/liabilities | 23,241,805 | - | 7,362,303 | 6,477,348 |
| Net assets | 25,993,470 | - | 11,238,894 | 10,553,851 |
| CONDENSED COMPREHENSIVE INCOME | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|---|---|
| Net profit or loss for the year | 1,675,127 | - | 497,843 | -160,675 | 315,521 | 209,340 |
| Other comprehensive income | 0 | - | 0 | 71,401 | -164 | 0 |
| Total comprehensive income | 1,675,127 | - | 497,843 | -89,274 | 315,357 | 209,340 |
| Dividends from associates for the year | 0 | - | 0 | 0 | 0 | - |
| in EUR | HTM | FV TPL – Held for trading | FV TPL - Designated upon acquisition | AFS L & R | TO TAL | |
|---|---|---|---|---|---|---|
| Debt and other fixed-return securities | 157,560,733 | 0 | 431,465,194 | 1,917,552,252 | 5,991,639 | 2,512,569,818 |
| 31 December 2021 | 31 December 2020 | |||||
|---|---|---|---|---|---|---|
| Carrying value | Fair value | |||||
| Held to maturity | 157,560,733 | 162,824,686 | 191,798,392 | 206,893,874 | ||
| At fair value through profit and loss | 544,425,798 | 524,670,726 | 544,425,798 | 524,670,726 | ||
| – held for trading | 266,015 | 113,301 | 266,015 | 113,301 | ||
| – classified at acquisition | 544,159,783 | 524,557,423 | 544,159,783 | 524,557,423 | ||
| Available for sale | 2,137,609,082 | 2,101,914,068 | 2,137,609,082 | 2,101,914,068 | ||
| Loans and deposits | 98,104,537 | 97,971,079 | 99,906,383 | 104,492,900 | ||
| TOTAL | 2,937,700,150 | 2,887,380,559 | 2,973,739,655 | 2,937,971,568 |
For ease of presentation, abbreviations of individual categories of financial assets are used in the disclosures:
| FINANCIAL ASSETS | HTM | FVTPL | AFS | L\&R | TOTAL |
|---|---|---|---|---|---|
| As at 1 January 2020 | 186,109,072 | 614,403,313 | 1,826,940,416 | 112,578,151 | 2,740,030,952 |
| Purchases | 0 | 293,129,867 | 1,062,889,994 | 39,515,597 | 1,395,535,458 |
| Disposals | -156,030 | -352,160,420 | -594,050,133 | -12,244,071 | -958,610,654 |
| Maturities | -30,757,737 | -46,198,195 | -238,713,133 | -41,365,828 | -357,034,893 |
| Amount removed from other comprehensive income at disposal | 0 | 0 | -22,047,628 | 0 | -22,047,628 |
| Valuation through profit and loss | 0 | 8,695,330 | 0 | 0 | 8,695,330 |
| Valuation through other comprehensive income | 0 | 0 | 49,108,263 | 0 | 49,108,263 |
| Impairments | 0 | 0 | -1,646,803 | 48,564 | -1,598,239 |
| Premiums and discounts | 4,640,706 | 0 | -7,140,404 | 248,452 | -2,251,246 |
| Interest income | 3,127,925 | 8,255,509 | 29,534,521 | 1,414,339 | 42,332,294 |
| Acquisition | 0 | 0 | 299,404 | -1,346,323 | -1,046,919 |
| Exchange rate difference | -139,250 | -1,454,678 | -3,260,429 | -877,802 | -5,732,159 |
| As at 31 December 2020 | 162,824,686 | 524,670,724 | 2,101,914,068 | 97,971,079 | 2,887,380,557 |
| Purchases | 0 | 303,082,731 | 828,612,089 | 61,488,798 | 1,193,183,618 |
| Disposals | -155,425 | -230,259,601 | -500,165,301 | -3,401,132 | -733,981,459 |
| Maturities | -12,394,263 | -55,550,289 | -273,380,879 | -60,153,244 | -401,478,675 |
| Amount removed from other comprehensive income at disposal | 0 | 0 | -20,990,576 | 260,453 | -20,730,123 |
| Carrying value | Fair value | 31 December 2021 | 31 December 2020 |
|---|---|---|---|
| Loans and deposits | 32,521,523 | 32,135,431 | 36,951,085 |
| Held to maturity | 140,946,233 | 173,901,172 | 143,908,512 |
| Available for sale | 1,588,390,263 | 1,588,390,263 | 1,595,002,429 |
| At fair value through profit and loss: | 206,821,960 | 206,821,960 | 207,726,347 |
| – designated | 206,801,643 | 206,801,643 | 207,613,046 |
| – held for trading | 20,317 | 20,317 | 113,301 |
| TOTAL | 1,968,679,979 | 2,001,248,826 | 1,983,588,373 |
Valuation through profit and loss: -4,896,181
Valuation through other comprehensive income: -17,636,470
Impairments: 0
Premiums and discounts: -2,607,699
Interest income: 35,419,510
Acquisition: 0
Exchange rate difference: 3,047,072
As at 31 December 2021: 2,937,700,150
| in EUR | HTMFV | TPL – Designated upon acquisition | AFSL\&R | SKUPA J | Debt and other fixed-return securities |
|---|---|---|---|---|---|
| 140,946,233 | 175,170,224 | 1,414,431,597 | 5,991,639 | 1,736,539,694 | |
| Investments in shares, other floating-rate securities and fund coupons | 0 | 31,631,419 | 172,377,789 | 0 | 204,009,208 |
| Financial derivatives | 0 | 20,317 | 0 | 0 | 20,317 |
| Loans and deposits: | 0 | 0 | 1,580,876 | 26,529,884 | 28,110,760 |
| - deposits with banks and certificates of deposits | 0 | 0 | 0 | 19,676,707 | 19,676,707 |
| HTM | FV | TPL | AFS | L\&R | SKUPA J | |
|---|---|---|---|---|---|---|
| loans given | 0 | 0 | 0 | 5,155,690 | 5,155,690 | |
| other financial investments | 0 | 0 | 1,580,876 | 1,697,486 | 3,278,362 | |
| TOTAL | 140,946,233 | 206,821,960 | 1,588,390,263 | 32,521,523 | 1,968,679,979 |
| AFS L\&R | SKUPA J | |||||
|---|---|---|---|---|---|---|
| Debt and other exd-return securities | 143,908,512 | 205,749,607 | 1,481,312,962 | 6,401,173 | 1,837,372,254 | |
| Investments in shares, other floating-rate securities and fund coupons | 0 | 1,863,439 | 111,723,131 | 0 | 113,586,570 | |
| Financial derivatives | 0 | 113,301 | 0 | 0 | 113,301 | |
| Loans and deposits: | 0 | 0 | 1,966,336 | 30,549,912 | 32,516,248 | |
| – deposits with banks and certificates of deposits | 0 | 0 | 0 | 19,567,302 | 19,567,302 | |
| – loans given | 0 | 0 | 0 | 9,294,086 | 9,294,086 | |
| – other financial investments | 0 | 0 | 1,966,336 | 1,688,524 | 3,654,860 | |
| TOTAL | 143,908,512 | 207,726,347 | 1,595,002,429 | 36,951,085 | 1,983,588,373 |
| HTM | FV | TPL | AFS | L\&R | SKUPA J | |
|---|---|---|---|---|---|---|
| As at 1 January 2020 | 150,469,553 | 329,885,913 | 1,382,802,069 | 49,049,847 | 1,912,207,382 | |
| Purchases | 0 | 211,961,511 | 863,590,121 | 5,640,741 | 1,081,192,373 | |
| Maturities | -13,476,047 | -20,514,811 | -164,604,063 | -18,613,902 | -217,208,823 | |
| Disposal | 0 | -321,531,070 | -524,770,401 | -5,113 | -846,306,584 | |
| Amount removed from other comprehensive income at disposal | 0 | 0 | -20,157,134 | 0 | -20,157,134 | |
| Realized gains or losses on disposal | 0 | 0 | 0 | 0 | 0 | |
| Valuation through profit and loss | 0 | 5,419,645 | 0 | 0 | 5,419,645 | |
| Valuation through other comprehensive income | 0 | 0 | 44,955,832 | 0 | 44,955,832 | |
| Impairments | 0 | 0 | -1,632,351 | 0 | -1,632,351 | |
| Premiums and discounts | 4,640,706 | 0 | -6,483,260 | 248,452 | -1,594,102 | |
| Interest income | 2,274,300 | 2,559,999 | 21,367,701 | 921,150 | 27,123,150 | |
| Transfer between funds | 0 | 0 | 0 | 0 | 0 | |
| Exchange rate difference | 0 | -54,840 | -66,083 | -290,091 | -411,014 | |
| As at 31 December 2020 | 143,908,512 | 207,726,347 | 1,595,002,429 | 36,951,085 | 1,983,588,373 | |
| Purchases | 0 | 184,307,139 | 701,453,620 | 361,588 | 886,122,347 | |
| Maturities | -9,654,672 | -28,614,834 | -223,081,727 | -5,266,107 | -266,617,340 | |
| Disposal | 0 | -154,898,078 | -458,906,853 | -415,014 | -614,219,945 | |
| Amount removed from other comprehensive income at disposal | 0 | 0 | -19,976,488 | 0 | -19,976,488 | |
| Realized gains or losses on disposal | 0 | 0 | 0 | 0 | 0 | |
| Valuation through profit and loss | 0 | -3,191,308 | 0 | 0 | -3,191,308 | |
| Valuation through other comprehensive income | 0 | 0 | -16,669,933 | 0 | -16,669,933 | |
| Impairments | 0 | 0 | 0 | 0 | 0 | |
| Premiums and discounts | 4,779,662 | 0 | -6,861,573 | 922 | -2,080,989 | |
| Interest income | 1,912,731 | 1,602,748 | 17,423,471 | 796,312 | 21,735,262 | |
| Transfer between funds | 0 | 0 | 0 | 0 | 0 | |
| Exchange rate difference | 0 | -110,054 | 7,317 | 92,737 | -9,999 | |
| As at 31 December 2021 | 140,946,233 | 206,821,960 | 1,588,390,263 | 32,521,523 | 1,968,679,979 |
As 31 December 2021, the Company’s portfolio included neither received securities as collateral for loans given, nor any securities pledged as collateral for its liabilities. The proportion of the Company’s financial investments classified as subordinated instruments by the issuer was 2.96% as at the reporting date.
The signs of impairment of financial investments were tested as at 31 December 2021, where with respect to equity securities a significant decrease in the fair value of the security (a 20% decrease in fair value below cost) or a long-term decrease in its fair value (a decrease in value over a 9-month period) was taken into account as objective evidence of impairment. No signs of impairment of financial investments were identified.
All unit-linked insurance assets are classified in the group of financial assets measured at fair value through profit or loss. Their carrying amounts are equal to their fair values.
Unit-linked insurance assets are presented below according to their distribution into individual groups.
| Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|
| in EUR | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 |
| Equity instruments | 594,267,074 | 443,699,150 | 529,598,379 | 396,272,477 |
| Debt instruments | 25,350,414 | 58,109,830 | 9,819,593 | 46,020,011 |
| TOTAL | 619,617,488 | 501,808,980 | 539,417,972 | 442,292,488 |
| 31 Dec . 2021 | 31 Dec . 2020 | 31 Dec . 2021 | 31 Dec . 2020 | |
|---|---|---|---|---|
| Reinsurers’ share of unearned premiums | 53,115,634 | 40,742,291 | 41,581,360 | 35,626,767 |
| Reinsurers’ share of claims | 115,899,852 | 82,994,283 | 94,405,037 | 70,235,406 |
| Reinsurers' share of technical provisions for bonuses and discounts | 34,916 | 16,339 | 0 | 0 |
| Total non-life insurance | 169,050,402 | 123,752,913 | 135,986,397 | 105,862,173 |
| 31 Dec . 2021 | 31 Dec . 2020 | 31 Dec . 2021 | 31 Dec . 2020 | |
|---|---|---|---|---|
| Reinsurers’ share of unearned premiums | 1,903 | 1,576 | 728 | 635 |
| Reinsurers’ share of claims | 155,829 | 114,286 | 90,832 | 40,630 |
| Reinsurers' share of other mathematical provisions | 5,631,756 | 2,004,863 | 0 | 0 |
| Total life insurance | 5,789,488 | 2,120,725 | 91,560 | 41,265 |
| 31 Dec . 2021 | 31 Dec . 2020 | 31 Dec . 2021 | 31 Dec . 2020 | |
|---|---|---|---|---|
| Total assets from reinsurance contracts | 174,839,890 | 125,873,637 | 136,077,958 | 105,903,438 |
| As at 1 January 2020 | As at 1 January 2020 | |
|---|---|---|
| 482,031,288 | 433,758,610 | |
| Purchases | 101,129,592 | 88,646,028 |
| Disposals | -84,766,909 | -81,782,012 |
| Maturities | -6,217,099 | -5,788,340 |
| Amount removed from other comprehensive income at disposal | 0 | 0 |
| Profit/loss on disposal | 0 | 0 |
| Valuation through profit or loss | 10,898,574 | 7,776,032 |
| Valuation through other comprehensive income | 0 | 0 |
| Impairments | 0 | 0 |
| Premiums and discounts | 93,186 | 93,186 |
| Interest income | 752,721 | 528,168 |
| Transfer between funds | 0 | 0 |
| Exchange rate difference | -2,112,373 | -939,183 |
| As at 31 December 2020 | 501,808,980 | 442,292,488 |
| Purchases | 164,719,485 | 130,148,467 |
| Disposals | -126,792,780 | -107,958,832 |
| Maturities | -1,679,786 | -304,161 |
| Amount removed from other comprehensive income at disposal | 0 | 0 |
| Profit/loss on disposal | 0 | 0 |
| Valuation through profit and loss | 78,491,784 | 73,893,062 |
| Valuation through other comprehensive income | 0 | 0 |
| Impairments | 0 | 0 |
| Premium and discounts | 0 | 0 |
| Interest income | 343,564 | 86,419 |
| Transfer between funds | 0 | 0 |
| Exchange rate difference | 2,726,241 | 1,260,529 |
| As at 31 December 2021 | 619,617,488 | 539,417,972 |
Triglav Group
| in EUR | NOT DUE | OVERDUE UP TO 180 DAYS | OVERDUE OVER 180 DAYS | Gross value | Impairment | Net value | Gross value | Impairment | Net value | Gross value | Impairment | Net value | TOTAL NET VALUE | |
| Receivables from direct insurance operations | 91,820,356 | -114,585 | 91,705,771 | 22,286,167 | -2,545,490 | 19,740,677 | 46,587,473 | -41,178,714 | 5,408,759 | 116,855,207 | ||||
| Receivables from insurers | 85,627,779 | -109,007 | 85,518,772 | 20,961,728 | -2,412,857 | 18,548,871 | 35,233,205 | -33,865,076 | 1,368,129 | 105,435,772 | ||||
| Receivables from insurance brokers | 483,018 | 0 | 483,018 | 284,708 | -78,483 | 206,225 | 407,273 | -398,445 | 8,828 | 698,071 | ||||
| Other receivables from direct insurance operations | 5,709,559 | -5,578 | 5,703,981 | 1,039,731 | -54,150 | 985,581 | 10,946,995 | -6,915,193 | 4,031,802 | 10,721,364 | ||||
| Receivables from co-insurance and reinsurance operations | 50,828,032 | 0 | 50,828,032 | 11,928,250 | 0 | 11,928,250 | 4,546,183 | -101,533 | 4,444,650 | 67,200,932 | ||||
| Premium receivable from co-insurance | 2,686,589 | 0 | 2,686,589 | 815,126 | 0 | 815,126 | 516,108 | -6,107 | 510,001 | 4,011,716 | ||||
| Premium receivable from reinsurance | 36,929,384 | 0 | 36,929,384 | 9,645,377 | 0 | 9,645,377 | 2,981,035 | -95,426 | 2,885,609 | 49,460,370 | ||||
| Receivables from co-insurers’ share in claims | 345,342 | 0 | 345,342 | 156,693 | 0 | 156,693 | 2,003 | 0 | 2,003 | 504,038 | ||||
| Receivables from reinsurers’ share in claims | 10,412,747 | 0 | 10,412,747 | 1,311,054 | 0 | 1,311,054 | 1,043,666 | 0 | 1,043,666 | 12,767,467 | ||||
| Other receivables from co-insurance and reinsurance operations | 453,970 | 0 | 453,970 | 0 | 0 | 0 | 3,371 | 0 | 3,371 | 457,341 | ||||
| Receivables for income tax refund | 4,127,384 | 0 | 4,127,384 | 0 | 0 | 0 | 0 | 0 | 0 | 4,127,384 |
| Other receivables | 18,726,280 | -570,974 | 18,155,306 | 5,201,870 | -980,917 | 4,220,953 | 64,283,690 | -62,466,563 | 1,817,127 | 24,193,386 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Other short-term receivables from insurance operations* | 4,437,276 | -25 | 4,437,251 | 3,310,488 | -935,726 | 2,374,762 | 60,404,439 | -59,315,389 | 1,089,050 | 7,901,063 | |
| Short-term receivables from financing | 518,525 | 0 | 518,525 | 102,493 | -696 | 101,797 | 452,813 | -449,259 | 3,554 | 623,876 | |
| Other short-term receivables | 12,059,476 | -526,803 | 11,532,673 | 1,768,069 | -44,495 | 1,723,574 | 3,426,438 | -2,701,915 | 724,523 | 13,980,770 | |
| Long-term receivables | 1,711,003 | -44,146 | 1,666,857 | 20,820 | 0 | 20,820 | 0 | 0 | 0 | 1,687,677 | |
| TOTAL | 165,502,052 | -685,559 | 164,816,493 | 39,416,287 | -3,526,407 | 35,889,880 | 115,417,346 | -103,746,810 | 11,670,536 | 212,376,909 |
*Subrogated receivables are included in other short-term receivables from insurance operations.
269
| TOTAL NET VALUE | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables from direct insurance operations | 82,205,319 | -171,297 | 82,034,022 | 21,237,566 | -2,418,104 | 18,819,462 | 49,239,648 | -44,608,193 | 4,631,455 | 105,484,939 | |||
| Receivables from insurers | 80,608,717 | -164,228 | 80,444,489 | 20,180,616 | -2,383,479 | 17,797,137 | 38,661,914 | -36,805,565 | 1,856,349 | 100,097,975 | |||
| Receivables from insurance brokers | 296,535 | 0 | 296,535 | 133,003 | -23,647 | 109,356 | 569,694 | -535,988 | 33,706 | 439,597 | |||
| Other receivables from direct insurance operations | 1,300,067 | -7,069 | 1,292,998 | 923,947 | -10,978 | 912,969 | 10,008,040 | -7,266,640 | 2,741,400 | 4,947,367 | |||
| Receivables from co-insurance and reinsurance operations | 57,298,468 | 0 | 57,298,468 | 9,617,444 | 0 | 9,617,444 | 7,558,148 | -2,118,927 | 5,439,221 | 72,355,133 | |||
| Premium receivable from co-insurance | 1,252,489 | 0 | 1,252,489 | 191,763 | 0 | 191,763 | 291,039 | -6,101 | 284,938 | 1,729,190 | |||
| Premium receivable from reinsurance | 47,104,086 | 0 | 47,104,086 | 6,387,375 | 0 | 6,387,375 | 2,996,744 | -98,192 | 2,898,552 | 56,390,013 | |||
| Receivables from co-insurers’ share in claims | 282,865 | 0 | 282,865 | 238,961 | 0 | 238,961 | 4,250 | 0 | 4,250 | 526,076 | |||
| Receivables from reinsurers’ share in claims | 5,679,670 | 0 | 5,679,670 | 2,457,343 | 0 | 2,457,343 | 4,072,999 | -2,014,634 | 2,058,365 | 10,195,378 | |||
| Other receivables from co-insurance and reinsurance operations | 2,979,358 | 0 | 2,979,358 | 342,002 | 0 | 342,002 | 193,116 | 0 | 193,116 | 3,514,476 | |||
| Receivables for income tax refund | 1,950,631 | 0 | 1,950,631 | 0 | 0 | 0 | 0 | 0 | 0 | 1,950,631 | |||
| Other receivables | 16,114,518 | -6,411 | 16,108,107 | 6,404,444 | -1,214,331 | 5,190,113 | 67,548,697 | -65,453,769 | 2,094,928 | 23,393,148 | |||
| Other short-term receivables from insurance operations * | 3,914,542 | 0 | 3,914,542 | 3,805,245 | -1,067,822 | 2,737,423 | 62,828,177 | -61,480,425 | 1,347,752 | 7,999,717 | |||
| Short-term receivables from financing | 1,343,279 | 0 | 1,343,279 | 46,940 | -5,472 | 41,468 | 463,671 | -456,887 | 6,784 | 1,391,531 | |||
| Other short-term receivables | 9,634,163 | 0 | 9,634,163 | 1,962,292 | -141,037 | 1,821,255 | 4,218,305 | -3,477,913 | 740,392 | 12,195,810 | |||
| Long-term receivables | 1,222,534 | -6,411 | 1,216,123 | 589,967 | 0 | 589,967 | 38,544 | -38,544 | 0 | 1,806,090 | |||
| TOTAL | 157,568,936 | -177,708 | 157,391,228 | 37,259,454 | -3,632,435 | 33,627,019 | 124,346,493 | -112,180,889 | 12,165,604 | 203,183,851 |
| Receivables | Gross value | Impairment | Net value | Gross value | Impairment | Net value | Gross value | Impairment | Net value |
|---|---|---|---|---|---|---|---|---|---|
| Receivables from direct insurance operations | 62,724,256 | -90,867 | 62,633,389 | 8,032,202 | -1,226,874 | 6,805,328 | 19,914,409 | -15,836,552 | 4,077,857 |
| Receivables from insurers | 57,180,390 | -90,867 | 57,089,523 | 7,337,698 | -1,219,558 | 6,118,140 | 15,952,913 | -15,816,111 | 136,802 |
| Receivables from insurance brokers | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other receivables from direct insurance operations | 5,543,866 | 0 | 5,543,866 | 694,504 | -7,316 | 687,188 | 3,961,496 | -20,441 | 3,941,055 |
| Receivables from co-insurance and reinsurance operations | 16,077,319 | 0 | 16,077,319 | 4,784,925 | 0 | 4,784,925 | 2,660,096 | 0 | 2,660,096 |
| Premium receivable from co-insurance | 703,483 | 0 | 703,483 | 0 | 0 | 0 | 0 | 0 | 703,483 |
| Premium receivable from reinsurance | 9,334,452 | 0 | 9,334,452 | 3,858,491 | 0 | 3,858,491 | 2,037,158 | 0 | 2,037,158 |
| Receivables from co-insurers’ share in claims | 182,738 | 0 | 182,738 | 45,402 | 0 | 45,402 | 0 | 0 | 0 |
| Receivables from reinsurers’ share in claims | 5,856,646 | 0 | 5,856,646 | 881,032 | 0 | 881,032 | 622,938 | 0 | 622,938 |
| Other receivables from co-insurance and reinsurance operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables for income tax refund | 564,166 | 0 | 564,166 | 0 | 0 | 0 | 0 | 0 | 564,166 |
| Other receivables | 4,273,617 | -25 | 4,273,592 | 3,591,774 | -928,466 | 2,663,308 | 58,948,341 | -58,318,754 | 629,587 |
| 1,568,569 | -25 | 1,568,544 | 3,048,304 | -927,771 | 2,120,533 | 58,727,842 | -58,120,916 | 606,926 | 4,296,003 |
|---|---|---|---|---|---|---|---|---|---|
| 462,938 | 0 | 462,938 | 102,493 | -695 | 101,798 | 140,640 | -140,170 | 470 | 565,206 |
|---|---|---|---|---|---|---|---|---|---|
| 1,962,760 | 0 | 1,962,760 | 440,977 | 0 | 440,977 | 79,859 | -57,668 | 22,191 | 2,425,928 |
|---|---|---|---|---|---|---|---|---|---|
| 279,350 | 0 | 279,350 | 0 | 0 | 0 | 0 | 0 | 0 | 279,350 |
|---|---|---|---|---|---|---|---|---|---|
| 83,639,358 | -90,892 | 83,548,466 | 16,408,901 | -2,155,340 | 14,253,561 | 81,522,846 | -74,155,306 | 7,367,540 | 105,169,567 |
|---|---|---|---|---|---|---|---|---|---|
*Subrogated receivables are included in other short term receivables from insurance operations.
The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2021 in EUR
| Receivables from direct insurance operations | 57,143,930 | -146,255 | 56,997,675 | 9,381,896 | -1,350,114 | 8,031,782 | 20,457,885 | -17,855,130 | 2,602,755 | 67,632,214 |
|---|---|---|---|---|---|---|---|---|---|---|
| Receivables from insurers | 56,050,971 | -146,255 | 55,904,716 | 8,506,172 | -1,346,199 | 7,159,973 | 17,987,581 | -17,713,959 | 273,622 | 63,338,311 |
| Receivables from insurance brokers | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other receivables from direct insurance operations | 1,092,959 | 0 | 1,092,959 | 875,724 | -3,915 | 871,809 | 2,470,304 | -141,170 | 2,329,133 | 4,293,902 |
| Receivables from co-insurance and reinsurance operations | 9,792,267 | 0 | 9,792,267 | 8,325,030 | 0 | 8,325,030 | 1,679,797 | 0 | 1,679,797 | 19,797,094 |
| Premium receivable from co-insurance | 575,795 | 0 | 575,795 | 0 | 0 | 0 | 0 | 0 | 0 | 575,795 |
| Premium receivable from reinsurance | 3,612,842 | 0 | 3,612,842 | 7,426,927 | 0 | 7,426,927 | 302,528 | 0 | 302,528 | 11,342,297 |
| Receivables from co-insurers’ share in claims | 281,820 | 0 | 281,820 | 0 | 0 | 0 | 0 | 0 | 0 | 281,820 |
| Receivables from reinsurers’ share in claims | 5,321,810 | 0 | 5,321,810 | 898,103 | 0 | 898,103 | 1,377,269 | 0 | 1,377,269 | 7,597,182 |
| Other receivables from co-insurance and reinsurance operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other receivables | 4,523,530 | -2 | 4,523,528 | 4,092,985 | -1,114,639 | 2,978,347 | 61,470,573 | -60,601,549 | 869,023 | 8,370,898 |
| Other short-term receivables from insurance operations* | 1,387,666 | -2 | 1,387,664 | 3,614,241 | -1,060,037 | 2,554,204 | 61,299,633 | -60,450,817 | 848,816 | 4,790,685 |
| Short-term receivables from financing | 1,297,669 | 0 | 1,297,669 | 37,380 | -5,471 | 31,909 | 135,326 | -131,306 | 4,020 | 1,333,598 |
| Other short-term receivables | 1,568,379 | 0 | 1,568,379 | 441,364 | -49,131 | 392,233 | 35,613 | -19,426 | 16,187 | 1,976,800 |
| Long-term receivables | 269,815 | 0 | 269,815 | 0 | 0 | 0 | 0 | 0 | 0 | 269,815 |
| TOTAL | 71,459,727 | -146,257 | 71,313,470 | 21,799,912 | -2,464,753 | 19,335,159 | 83,608,254 | -78,456,679 | 5,151,575 | 95,800,206 |
*Subrogated receivables are included in other short term receivables from insurance operations.
| in EUR | Triglav Group | Zavarovalnica Triglav | |
|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 |
| Impairment allowance for receivables as at 1 January | 39,353,272 | 41,518,055 | 19,206,413 | 20,330,577 |
|---|---|---|---|---|
| – Increase of impairment allowance for receivables | 4,393,727 | 5,619,174 | 2,607,237 | 2,969,080 |
| – Decrease in impairment allowance for receivables | -3,037,943 | -3,234,174 | -2,523,776 | -2,268,890 |
| – Receivables write-off | -4,363,319 | -4,407,712 | -2,163,338 | -1,824,355 |
| – Changes in Group | 0 | 0 | 0 | 0 |
| – Acquisition | 6,176 | -25,545 | 0 | 0 |
| – Exchange rate difference | 35,030 | -116,526 | 0 | 0 |
| Impairment allowance for receivables as at 31 December | 36,386,940 | 39,353,272 | 17,126,536 | 19,206,413 |
| Impairment allowance for receivables as at 1 January | 62,548,247 | 64,624,294 | 61,510,856 | 63,606,384 |
|---|---|---|---|---|
| – Increase of impairment allowance for receivables | 7,179,130 | 8,457,591 | 7,123,619 | 8,428,269 |
| – Decrease in impairment allowance for receivables | -5,986,348 | -6,179,827 | -6,095,000 | -6,171,650 |
| Impairment allowance for receivables as at 1 January | 14,089,513 | 14,846,966 | 350,419 | 361,021 |
|---|---|---|---|---|
| Increase of impairment allowance for receivables | 293,938 | 527,886 | 48,390 | 84,788 |
| Decrease in impairment allowance for receivables | -2,517,850 | -259,361 | -35,643 | -18,753 |
| Receivables write-off | -577,353 | -916,168 | -136,876 | -76,637 |
| Transfer on deferred income | 0 | 0 | 0 | 0 |
| Exchange rate difference | 32,448 | -110,807 | 0 | 0 |
| Changes in Group | 0 | 997 | 0 | 0 |
| Merger | 0 | 0 | 0 | 0 |
| Transfer on disposal group held for sale | 0 | 0 | 0 | 0 |
| Impairment allowance for receivables as at 31 December | 11,320,696 | 14,089,513 | 226,290 | 350,419 |
| As at 1 January | 115,991,032 | 120,989,315 | 81,067,688 | 84,297,982 |
|---|---|---|---|---|
| As at 31 December | 107,958,776 | 115,991,032 | 76,401,538 | 81,067,689 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Inventories | 474,248 | 526,765 | 199,858 | 253,006 |
| Deferred costs | 3,940,050 | 5,009,827 | 1,313,402 | 3,087,241 |
| Investments into computer software for the Group | 0 | 401,553 | 0 | 401,553 |
| Other assets | 428,727 | 358,560 | 0 | 0 |
| TOTAL | 4,843,025 | 6,296,705 | 1,513,260 | 3,741,799 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Cash in bank accounts | 54,383,207 | 58,670,999 | 13,897,783 | 17,288,122 |
| Call account | 27,510,454 | 22,766,225 | 0 | 5,000,172 |
| Cash on hand | 427,969 | 462,440 | 15,208 | 15,928 |
| TOTAL | 82,321,630 | 81,899,664 | 13,912,991 | 22,304,222 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Land and property of company Triglav upravljanje nekretninama d.o.o., Zagreb | 49,514 | 146,884 | 0 | 0 |
| Land and property of company Triglav Upravljanje nepremičnin d.o.o. | 3,564,626 | 768,967 | 0 | 0 |
| Land and property of company Triglav Osiguranje a.d., Banja Luka | 197,904 | 0 | 0 | 0 |
| TOTAL | 3,812,044 | 915,851 | 0 | 0 |
As at 31 December 2021, the Company’s share capital amounted to EUR 73,701,392 (31 December 2020: 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 2021, there were 11,998 subscribers of shares in Zavarovalnica Triglav’s share register (31 December 2020: 12,982). The largest subscribers are presented in the table below.
| Subscriber | Number of Shares |
|---|---|
| Num of shares | Share (%) | Subscribers 2021 |
|---|---|---|
| 7,836,628 | 34.47 | Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana |
| 6,386,644 | 28.09 | SDH d.d., Ljubljana |
| 1,526,190 | 6.71 | Erste Group Bank - PBZ Croatia Osiguranje OMF account – duciar y account, Austria |
| 595,286 | 2.62 | Unicredit Bank Austria – duciar y account, Austria |
| 555,383 | 2.44 | Citibank – duciar y account, Great Britain |
| 232,764 | 1.02 | Hrvatska poštanska banka – duciar y account, Croatia |
| 161,940 | 0.71 | Skandinaviska Enskilda Banken – duciar y account, Luxembourg |
| 120,565 | 0.53 | Clearstream Banking SA – duciar y account, Luxembourg |
| 90,194 | 0.40 | State Street Bank and Trust – duciar y account, USA |
| 83,014 | 0.37 | Forplan d.o.o., Ljubljana |
| 5,146,540 | 22.64 | Other shareholders (less than 1%) |
| TOTAL | 100.00 | 22,735,148 |
| 31 Dec. 2021 | 31 Dec. 2020 | |||||
|---|---|---|---|---|---|---|
| Quoted price of the share on the regulated securities market | 36.80 | 30.00 | ||||
| Book value of equity per share | 29.70 | 28.33 |
| Net profit/ loss for the year | 73,415,549 | 57,997,639 |
|---|---|---|
| Net profit brought forward | 50,974,423 | 60,543,475 |
| Increase in retained income | -29,592 | -16,939 |
| Increase of other reserves from profit based on the decision by the Management and Supervisory Boards | -36,700,000 | -28,900,000 |
| ACCUMULATED PROFITS | 87,660,380 | 89,624,175 |
| To shareholders | 38,649,752 |
|---|---|
| Allocation to other reserves from profit | 0 |
| Transfer to the following year | 50,974,423 |
| Num of shares | Share (%) | Subscribers 2020 |
|---|---|---|
| 7,836,628 | 34.47 | Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana |
| 6,386,644 | 28.09 | SDH d.d., Ljubljana |
| 1,526,190 | 6.71 | Addiko Bank d.d., Pension fund 1 – duciar y account, Croatia |
| 604,642 | 2.66 | Unicredit Bank Austria – duciar y account, Austria |
| 530,402 | 2.33 | Citibank – duciar y account, Great Britain |
| 232,644 | 1.02 | Hrvatska poštanska banka – duciar y account, Croatia |
| 186,201 | 0.82 | East Capital – East Capital Balkans, Luxembourg |
| 166,678 | 0.73 | Pozavarovalnica Sava Re d.d., Ljubljana |
| 84,399 | 0.37 | The Bank of New York Mellon – duciar y account, USA |
| 84,298 | 0.37 | Forplan d.o.o., Ljubljana |
| 5,096,422 | 22.43 | Other shareholders (less than 1%) |
| TOTAL | 100.00 | 22,735,148 |
Based on KDD data, the table lists the 10 largest shareholders or subscribers who are custodian banks with shares of their clients in duciar y accounts.
The General Meeting of Shareholders will decide on the distribution of accumulated profit for 2021 at the proposal of the Management Board and the Supervisory Board.
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 is based on, in particular, the anticipated company’s strategic needs for capital, taking into account capital sources. When preparing the Annual Report for 2021, the Management Board formed other reserves from profit in the amount of EUR 36,700,000.
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. Triglav, Upravljanje nepremičnin d.o.o. held 24,312 shares of Zavarovalnica Triglav in the amount of EUR 364,680 as at 31 December 2021. The balance of treasury shares is unchanged compared to the preceding year.
In the consolidated financial statements, treasury shares are measured at cost and recognized as a deductible under equity. For these shares, treasury share reserves are created in the same amount from net profit brought forward.
Fair value reserves are changes in the fair value of available-for-sale financial assets and are reduced by deferred taxes. Changes in fair value reserves are specified in greater detail in the statement of comprehensive income in Section 1.3.
Translation differences arise from foreign exchange differences in consolidation procedures. In 2021, translation differences amounted to EUR 169,111 (2020: EUR 533,006). Translation differences mainly refer to the change in the exchange rate of Croatian kuna and Serbian dinar.
The following changes are shown in the Group’s statement of changes in equity for 2021:
• reclassification from statutory reserves to other reserves from profit in the amount of EUR 652,926;
• the effect of repurchases of shares of subsidiaries from non-controlling interest holders, which reduced the value of non-controlling interest holders’ capital by EUR 97,315, while the positive effect of repurchases in the amount of EUR 12,640 is disclosed as an increase in the Group’s share premium;
• reduction of fair value reserves and net profit brought forward in the total amount of EUR 11,437,675, of which EUR 134,292 reduces the capital of non-controlling interest holders. The decrease relates to the re-measurement of the fair value of financial investments and the recalculation of actuarial gains and losses related to employee benefits.
The following changes are shown in the Company’s statement of changes in equity for 2021:
• increase in capital for net profit of the year in the amount of EUR 73,415,549;
• reduction of capital for the payment of dividends in the amount of EUR 38,649,752 based on a General Meeting of Shareholders’ resolution;
• allocation of net profit from 2020 to net profit brought forward in the amount of EUR 29,097,639;
• allocation of net profit from 2021 to reserves from profit in the amount of EUR 36,700,000 based on a General Meeting of Shareholders’ resolution;
| in EUR | Triglav Group | Zavarovalnica Triglav |
|---|---|---|
| 31 Dec. 2021 | 49,471,831 | 49,471,831 |
| 31 Dec. 2020 | 49,423,693 | 49,423,693 |
| Fair value | 53,749,521 | 53,749,521 |
| 31 Dec. 2020 | 51,792,521 | 51,792,521 |
The amount does not include translation differences relating to non-controlling interests.
The ZAVARO 4 3/8 10/22/49 bond 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.
Issued bonds are disclosed 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 Ljubljana Stock Exchange. As at 31 December 2021, the price of ZAVARO 4 3/8 10/22/49 was 106.660% (31 December 2020: 102.746).
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.
The calculation of insurance technical provisions is based on actuarial methods, with the influence of selected estimates and assumptions, especially in the calculation of life insurance liabilities, being very large. The estimates and assumptions used in the calculation of insurance technical provisions for life insurance are described below.
The valuation of life and annuity insurance liabilities was carried out by using the modified prospective net premium method, taking into account acquisition costs, including all contractual obligations and
The calculation took into account acquisition costs below 3.5% of the sum insured under life insurance policies. The mathematical provisions for voluntary pension insurance were built up over the accumulation period using the retrospective method. In calculating the provisions, this method takes into account all premiums paid up to the valuation date, entry fees, sums paid out, bonuses from the guaranteed interest rate and bonuses credited to personal accounts from profit participation. The mathematical provisions for voluntary pension insurance during the pension annuity payout period were created using the prospective net method. The insurance technical parameters taken into account in the calculation are either the same as those set at the time of underwriting the policy or adjusted to the circumstances expected during pension payout, if these circumstances are worse than those taken into account in premium calculation. The interest rate used in the valuation of liabilities during premium payments ranged from 0.75% to 2.45%. An interest rate in the range of 0.5 – 2.4% and the Slovenian annuity mortality table SIA65 from 2010 were used in the valuation of liabilities for the pension annuity payout period.
The mathematical provisions for voluntary pension insurance were built up over the accumulation period using the retrospective method; during the pension annuity payout period, provisions are set aside based on the present value of estimated future liabilities (the prospective net method). The insurance technical parameters taken into account in the calculation either match the parameters set at the time of underwriting the policy or are adjusted for those subsequently changed circumstances that increase the amount of liabilities, particularly in the valuation of liabilities during the pension payout period. Slovenian annuity mortality tables SIA65 from 2010 were used in the valuation of liabilities. An interest rate in the range of 0.5 – 2.4% was used in the valuation of liabilities for the pension annuity payout period.
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| GROSS UNEARNED PREMIUM PROVISIONS | 366,127,294 | 340,941,945 | 245,629,454 | 234,785,484 |
| GROSS CLAIMS PROVISIONS | 655,329,262 | 609,302,604 | 425,072,536 | 410,567,439 |
| Gross claims provisions for IBNR and IBNER | 263,481,464 | 284,671,957 | 165,583,089 | 192,205,172 |
| Gross provisions for incurred and reported claims | 355,693,497 | 295,382,960 | 228,650,138 | 194,301,647 |
| Gross claims provisions for co-insurance | 646,211 | 655,874 | 646,211 | 655,874 |
| Expected subrogation | -6,391,970 | -6,796,269 | -6,391,970 | -6,796,269 |
| Provisions for claim handling costs | 41,900,059 | 35,388,083 | 36,585,068 | 30,201,015 |
| GROSS PROVISIONS FOR BONUSES AND DISCOUNTS | 24,165,736 | 24,882,389 | 23,724,069 | 23,837,107 |
| OTHER GROSS INSURANCE TECHNICAL PROVISIONS | 4,938,070 | 5,412,958 | 1,906,281 | 2,067,543 |
| TOTAL NON-LIFE INSURANCE TECHNICAL PROVISIONS | 1,050,560,362 | 980,539,896 | 696,332,340 | 671,257,573 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| GROSS UNEARNED PREMIUM PROVISIONS | 454,613 | 457,883 | 388,396 | 405,332 |
| GROSS MATHEMATICAL PROVISIONS | 1,432,613,660 | 1,457,023,963 | 1,008,319,155 | 1,041,557,084 |
| Gross mathematical provisions covering life insurance | 810,444,012 | 843,031,557 | 723,013,422 | 765,330,996 |
| Gross mathematical provisions covering SVPI | 545,627,331 | 547,404,191 | 208,763,416 | 209,637,873 |
| Gross mathematical provisions covering SVPI during the annuity payout period | 76,542,317 | 66,588,215 | 76,542,317 | 66,588,215 |
| GROSS CLAIMS PROVISIONS | 23,114,787 | 21,380,025 | 21,494,719 | 19,692,182 |
| Gross claims provisions for IBNR and IBNER | 19,431,913 | 17,325,134 | 18,542,390 | 16,280,801 |
| Gross provisions for incurred and reported claims | 3,382,190 | 3,780,134 | 2,684,866 | 3,175,954 |
| Gross claims provisions for co-insurance | 0 | 0 | 0 | 0 |
| Expected subrogation | 0 | 0 | 0 | 0 |
| Provisions for claim handling costs | 300,683 | 274,757 | 267,463 | 235,427 |
| GROSS PROVISIONS FOR BONUSES AND DISCOUNTS | 0 | 14,516 | 0 | 0 |
| OTHER INSURANCE TECHNICAL PROVISIONS | 16,230,260 | 20,323,718 | 13,838,576 | 17,403,211 |
| TOTAL LIFE INSURANCE TECHNICAL PROVISIONS | 1,472,413,320 | 1,499,200,105 | 1,044,040,846 | 1,079,057,809 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| GROSS UNEARNED PREMIUM PROVISIONS | 3,461,818 | 3,361,099 | 0 | 0 |
| GROSS CLAIMS PROVISIONS | 16,054,262 | 14,648,539 | 0 | 0 |
| Gross claims provisions for IBNR and IBNER | 14,062,216 | 13,461,809 | 0 | 0 |
| Gross provisions for incurred and reported claims | 1,735,686 | 792,999 | 0 | 0 |
| Gross claims provisions for co-insurance | 42,281 | 39,453 | 0 | 0 |
| Expected subrogation | 0 | 0 | 0 | 0 |
| Provisions for claim handling costs | 214,079 | 354,277 | 0 | 0 |
| GROSS PROVISIONS FOR BONUSES AND DISCOUNTS | 3,298,449 | 3,298,449 | 0 | 0 |
| OTHER INSURANCE TECHNICAL PROVISIONS | 30,580,173 | 22,181,056 | 0 | 0 |
| TOTAL HEALTH INSURANCE TECHNICAL PROVISIONS | 53,394,702 | 43,489,143 | 0 | 0 |
| 2,576,368,384 | 2,523,229,144 | 1,740,373,186 | 1,750,315,383 | |
|---|---|---|---|---|
| 622,303,398 | 509,984,710 | 540,135,052 | 448,726,097 |
|---|---|---|---|
The gross insurance technical provisions that refer to gross mathematical provisions for unit-linked life insurance are disclosed separately in the financial statements. Other insurance technical provisions for non-life insurance include provisions for cancellations and provisions for unexpired risks, while other insurance technical provisions for life insurance include additional provisions for credit risks.
| in EUR | Triglav Group | Zavarovalnica Triglav | ||
|---|---|---|---|---|
| NON-LIFE INSURANCE | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 |
| Gross provisions for incurred and unreported claims | 246,006,802 | 263,661,814 | 156,055,411 | 180,600,843 |
| Gross claims provisions | 263,481,465 | 284,671,957 | 165,583,089 | 192,205,172 |
| Reinsurers' share | -17,474,662 | -21,010,143 | -9,527,678 | -11,604,329 |
| Gross provisions for incurred and reported claims | 256,859,736 | 232,983,504 | 143,364,210 | 135,260,905 |
| Gross claims provisions | 355,693,497 | 295,382,960 | 228,650,138 | 194,301,647 |
| Reinsurers' and co-insurers' share | -98,833,761 | -62,399,456 | -85,285,928 | -59,040,742 |
| Gross claims provisions for co-insurance | 646,211 | 661,523 | 646,211 | 655,874 |
| Gross claims provisions | 646,211 | 655,874 | 646,211 | 655,874 |
| Reinsurers' share | 0 | 5,649 | 0 | 0 |
| Expected subrogation | -5,983,401 | -6,386,603 | -5,983,401 | -6,386,603 |
| Gross claims provisions | -6,391,970 | -6,796,269 | -6,391,970 | -6,796,269 |
| Reinsurers' share | 408,569 | 409,666 | 408,569 | 409,666 |
| Provisions for claim handling costs | 41,900,059 | 35,388,083 | 36,585,068 | 30,201,015 |
| Gross claims provisions | 41,900,059 | 35,388,083 | 36,585,068 | 30,201,015 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| 31 Dec . 2021 | 31 Dec . 2020 | 31 Dec . 2021 | 31 Dec . 2020 | |
|---|---|---|---|---|
| TOTAL GROSS CLAIMS PROVISIONS | 539,429,407 | 526,308,321 | 330,667,499 | 340,332,034 |
| TOTAL GROSS CLAIMS PROVISIONS | 655,329,262 | 609,302,605 | 425,072,536 | 410,567,439 |
| TOTAL REINSURERS' SHARE | -115,899,852 | -82,994,284 | -94,405,037 | -70,235,406 |
| 31 Dec . 2021 | 31 Dec . 2020 | 31 Dec . 2021 | 31 Dec . 2020 | |
|---|---|---|---|---|
| Gross provisions for incurred and unreported claims | 19,431,913 | 17,325,134 | 18,542,390 | 16,280,801 |
| Gross claims provisions | 19,431,913 | 17,325,134 | 18,542,390 | 16,280,801 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| Gross provisions for incurred and reported claims | 3,226,361 | 3,665,848 | 2,594,034 | 3,135,324 |
| Gross claims provisions | 3,382,190 | 3,780,134 | 2,684,866 | 3,175,954 |
| Reinsurers' share | -155,829 | -114,286 | -90,832 | -40,630 |
| Gross claims provisions for co-insurance | 0 | 0 | 0 | 0 |
| Gross claims provisions | 0 | 0 | 0 | 0 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| Expected subrogation | 0 | 0 | 0 | 0 |
| Gross claims provisions | 0 | 0 | 0 | 0 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| Provisions for claim handling costs | 300,683 | 274,757 | 267,463 | 235,427 |
| Gross claims provisions | 300,683 | 274,757 | 267,463 | 235,427 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| 31 Dec . 2021 | 31 Dec . 2020 | 31 Dec . 2021 | 31 Dec . 2020 | |
|---|---|---|---|---|
| TOTAL LIFE INSURANCE GROSS CLAIMS PROVISIONS | 22,958,957 | 21,265,739 | 21,403,887 | 19,651,552 |
| TOTAL GROSS CLAIMS PROVISIONS | 23,114,787 | 21,380,025 | 21,494,719 | 19,692,182 |
| TOTAL REINSURERS' SHARE | -155,829 | -114,286 | -90,832 | -40,630 |
| HEALTH INSURANCE | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|
| Gross provisions for incurred and unreported claims | 14,062,216 | 13,461,809 | 0 | 0 |
| Gross claims provisions | 14,062,216 | 13,461,809 | 0 | 0 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| Gross provisions for incurred and reported claims | 1,735,686 | 792,999 | 0 | 0 |
| Gross claims provisions | 1,735,686 | 792,999 | 0 | 0 |
| Reinsurers' and co-insurers' share | 0 | 0 | 0 | 0 |
| Gross claims provisions for co-insurance | 42,281 | 39,453 | 0 | 0 |
| Gross claims provisions | 42,281 | 39,453 | 0 | 0 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| Expected subrogation | 0 | 0 | 0 | 0 |
| Gross claims provisions | 0 | 0 | 0 | 0 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| Provisions for claim handling costs | 214,079 | 354,277 | 0 | 0 |
| Gross claims provisions | 214,079 | 354,277 | 0 | 0 |
| Reinsurers' share | 0 | 0 | 0 | 0 |
| TOTAL HEALTH INSURANCE GROSS CLAIMS PROVISIONS | 16,054,262 | 14,648,538 | 0 | 0 |
278
| TOTAL GROSS CLAIMS PROVISIONS | 16,054,262 | 14,648,538 | 0 | 0 |
|---|---|---|---|---|
| TOTAL REINSURERS' SHARE | 0 | 0 | 0 | 0 |
| Gross unearned premium | Gross mathematical provisions | Gross claims provisions | Gross provisions for |
|---|---|---|---|
| Other gross insurance technical provisions | Unit-linked insurance-technical provisions | Total gross insurance technical provisions | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 1 January 2020 | 328,736,413 | 0 | 580,098,532 | 19,683,771 | 5,581,324 | 0 | 934,100,040 | ||
| Increase | 250,410,276 | 0 | 249,101,434 | 14,824,162 | 3,617,805 | 0 | 517,953,677 | ||
| Use | -237,769,242 | 0 | -219,450,758 | -9,619,135 | -3,779,951 | 0 | -470,619,086 | ||
| Exchange rate difference | -435,502 | 0 | -446,604 | -6,409 | -6,220 | 0 | -894,735 | ||
| 31 December 2020 | 340,941,945 | 0 | 609,302,604 | 24,882,389 | 5,412,958 | 0 | 980,539,896 | ||
| Increase | 265,980,915 | 0 | 230,589,155 | 17,212,543 | 3,053,771 | 0 | 516,836,384 | ||
| Use | -240,971,129 | 0 | -184,792,860 | -17,932,464 | -3,531,416 | 0 | -447,227,869 | ||
| Exchange rate difference | 175,563 | 0 | 230,363 | 3,268 | 2,757 | 0 | 411,951 | ||
| 31 December 2021 | 366,127,294 | 0 | 655,329,262 | 24,165,736 | 4,938,070 | 0 | 1,050,560,362 |
| Gross unearned premium | Gross mathematical provisions | Gross claims provisions | Gross provisions for bonuses and discounts | Other gross insurance technical provisions | Unit-linked insurance-technical provisions | Total gross insurance technical provisions | ||
|---|---|---|---|---|---|---|---|---|
| 1 January 2020 | 443,779 | 1,404,439,748 | 20,761,018 | 0 | 12,592,965 | 484,942,834 | 1,923,180,344 | |
| Increase | 418,115 | 158,642,026 | 16,162,580 | 14,516 | 8,490,809 | 79,624,216 | 263,352,262 | |
| Use | -403,792 | -105,366,492 | -15,538,313 | 0 | -759,914 | -54,271,523 | -176,340,034 | |
| Transfer between funds | 0 | -7,040 | 0 | 0 | 0 | 7,040 | 0 | |
| Exchange rate difference | -219 | -684,279 | -5,260 | 0 | -142 | -317,857 | -1,007,757 | |
| 31 December 2020 | 457,883 | 1,457,023,963 | 21,380,025 | 14,516 | 20,323,718 | 509,984,710 | 2,009,184,815 | |
| Increase | 408,591 | 107,993,661 | 16,372,852 | 0 | 618,036 | 170,753,420 | 296,146,560 | |
| Use | -411,930 | -132,628,576 | -14,639,940 | -14,516 | -4,711,573 | -58,543,880 | -210,950,415 | |
| Transfer between funds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Exchange rate difference | 69 | 224,612 | 1,850 | 0 | 79 | 109,148 | 335,758 | |
| 31 December 2021 | 454,613 | 1,432,613,660 | 23,114,787 | 0 | 16,230,260 | 622,303,398 | 2,094,716,718 |
| Gross unearned premium | Gross mathematical provisions | Gross claims provisions | Gross provisions for bonuses and discounts | Other gross insurance technical provisions | Unit-linked insurance-technical provisions | Total gross insurance technical provisions | |
|---|---|---|---|---|---|---|---|
| 1 January 2020 | 3,330,743 | 0 | 14,539,194 | 0 | 3,719,849 | 0 | 21,589,786 |
| Increase | 3,466,830 | 0 | 14,230,810 | 3,298,449 | 18,816,328 | 0 | 39,812,417 |
| Use | -3,436,474 | 0 | -14,121,465 | 0 | -355,121 | 0 | -17,913,060 |
| Exchange rate difference | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 31 December 2020 | 3,361,099 | 0 | 14,648,539 | 3,298,449 | 22,181,056 | 0 | 43,489,143 |
| Increase | 3,461,818 | 0 | 15,595,425 | 0 | 8,605,950 | 0 | 27,663,193 |
| Use | -3,361,099 | 0 | -14,189,702 | 0 | -206,833 | 0 | -17,757,634 |
| Exchange rate difference | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 31 December 2021 | 3,461,818 | 0 | 16,054,262 | 3,298,449 | 30,580,173 | 0 | 53,394,702 |
| NON-LIFE INSURANCE | Gross unearned premium | Gross claims provisions | Gross provisions for bonuses and discounts | Other gross insurance technical provisions | Unit-linked insurance technical provisions | Total gross insurance technical provisions | |
|---|---|---|---|---|---|---|---|
| 1 January 2020 | 232,398,752 | 408,984,759 | 19,065,148 | 2,466,997 | 0 | 662,915,656 | |
| Increase | 189,698,292 | 150,796,816 | 14,193,523 | 2,067,543 | 0 | 356,756,174 | |
| Use | -187,311,560 | -149,214,136 | -9,421,564 | -2,466,997 | 0 | -348,414,257 | |
| 31 December 2020 | 234,785,484 | 410,567,439 | 23,837,107 | 2,067,543 | 0 | 671,257,573 | |
| Increase | 203,868,546 | 178,339,458 | 17,071,676 | 1,906,281 | 0 | 401,185,961 | |
| Use | -193,024,576 | -163,834,361 | -17,184,714 | -2,067,543 | 0 | -376,111,194 | |
| 31 December 2021 | 245,629,454 | 425,072,536 | 23,724,069 | 1,906,281 | 0 | 696,332,340 |
| Gross unearned premium | Gross mathematical provisions | Gross provisions for bonuses and discounts | Other gross insurance technical provisions | Unit-linked insurance technical provisions | Total gross insurance technical provisions | |
|---|---|---|---|---|---|---|
| 1 January 2020 | 392,304 | 1,020,231,686 | 19,336,004 | 10,545,871 | 435,592,711 | 1,486,098,576 |
| Increase | 405,332 | 100,648,322 | 12,566,405 | 6,936,986 | 61,613,890 | 182,170,935 |
| Use | -392,304 | -79,322,924 | -12,210,227 | -79,646 | -48,480,504 | -140,485,605 |
| Transfer between funds | 0 | 0 | 0 | 0 | 0 | 0 |
| 31 December 2020 | 405,332 | 1,041,557,084 | 19,692,182 | 17,403,211 | 448,726,097 | 1,527,783,906 |
| Increase | 388,396 | 58,496,458 | 11,907,104 | 0 | 141,789,936 | 212,581,894 |
| Use | -405,332 | -91,734,387 | -10,104,567 | -3,564,635 | -50,380,981 | -156,189,902 |
| Transfer between funds | 0 | 0 | 0 | 0 | 0 | 0 |
| 31 December 2021 | 388,396 | 1,008,319,155 | 21,494,719 | 13,838,576 | 540,135,052 | 1,584,175,898 |
| Triglav Group | Zavarovalnica Triglav | 2021 | 2020 | |
|---|---|---|---|---|
| Surrenders | 34,745,374 | 41,713,979 | 13,582,683 | 28,097,610 |
| Endowments | 67,344,272 | 53,130,433 | 63,191,276 | 48,648,353 |
| Deaths | 3,532,657 | 3,191,863 | 2,638,500 | 2,477,250 |
| Other | 27,006,273 | 7,330,215 | 12,321,928 | 99,711 |
| TOTAL | 132,628,576 | 105,366,490 | 91,734,387 | 79,322,924 |
Other releases refer to the payment of annuities, releases upon cancellation of insurance and releases of additional valuation provisions upon termination of insurance.
Year of occurrence
| Before 2012 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | TOTAL | |
| Cumulative loss assessment – at the end of year of occurrence | 537,773,397 | 540,980,548 | 523,335,884 | 494,721,974 | 497,610,909 | 523,078,938 | 559,765,704 | 589,478,961 | 699,754,015 | 651,454,343 | ||
| – 1 year after year of occurrence | 539,573,012 | 447,917,990 | 481,304,284 | 477,337,992 | 463,199,516 | 513,384,536 | 551,464,785 | 615,659,287 | 567,980,725 | |||
| – 2 years after year of occurrence | 500,921,267 | 463,342,293 | 466,027,510 | 463,910,257 | 456,287,534 | 505,363,769 | 551,950,951 | 570,039,619 | ||||
| – 3 years after year of occurrence | 496,641,454 | 439,583,068 | 458,436,319 | 460,400,102 | 450,345,614 | 501,998,857 | 556,923,802 | |||||
| – 4 years after year of occurrence | 487,381,079 | 433,339,855 | 453,418,013 | 453,483,042 | 449,036,330 | 512,189,291 | ||||||
| – 5 years after year of occurrence | 481,306,074 | 431,734,293 | 449,934,658 | 452,435,034 | 459,081,971 | |||||||
| – 6 years after year of occurrence | 476,606,548 | 427,365,044 | 449,715,329 | 463,207,693 | ||||||||
| – 7 years after year of occurrence | 473,185,651 | 425,783,667 | 456,124,574 | |||||||||
| – 8 years after year of occurrence | 467,706,623 | 433,719,427 | ||||||||||
| – 9 years after year of occurrence | 468,598,228 | |||||||||||
| – 10 years after year of occurrence | 84,482,924 | |||||||||||
| Cumulative loss assessment | 468,598,228 | 433,719,427 | 456,124,574 | 463,207,693 | 459,081,971 | 512,189,291 | 556,923,802 | 570,039,619 | 567,980,725 | 651,454,343 | ||
| Cumulative payments until balance sheet date | 5,785,784 | 460,712,456 | 421,858,043 | 445,614,142 | 446,631,550 | 439,351,507 | 487,468,470 | 519,138,075 | 514,427,310 | 461,379,685 | 385,774,221 |
| 18,200,013 | 7,740,060 | 4,615,911 | 5,968,288 | 7,435,960 | 12,820,497 | 20,287,859 | 42,110,812 | 129,307,841 | 346,517,811 | 595,005,052 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Settled during the period | 5,785,784 | 745,893 | 690,287 | 1,867,101 | 1,632,476 | 3,135,674 | 5,757,472 | 9,297,936 | 28,075,864 | 108,143,481 | 385,774,221 | 550,906,188 |
| Claim provisions balance | 78,697,140 | 7,885,772 | 11,861,384 | 10,510,431 | 16,576,143 | 19,730,465 | 24,720,821 | 37,785,727 | 55,612,309 | 106,601,041 | 265,680,122 | 635,661,355 |
| Year of occurrence | Before 2012 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | TOTAL |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cumulative loss assessment – at the end of year of occurrence | 357,523,991 | 317,835,549 | 320,473,605 | 288,017,455 | 287,798,336 | 303,002,462 | 300,175,993 | 306,625,399 | 297,229,772 | 319,180,313 |
| 1 year after year of occurrence | 304,864,538 | 266,546,400 | 276,286,823 | 244,620,306 | 248,557,097 | 279,993,010 | 278,632,613 | 281,008,780 | 263,456,383 |
|---|---|---|---|---|---|---|---|---|---|
| 2 years after year of occurrence | 296,542,971 | 256,384,328 | 265,047,929 | 236,877,342 | 244,240,955 | 273,830,944 | 269,833,005 | 275,224,075 | |
| 3 years after year of occurrence | 289,326,478 | 249,972,030 | 260,339,640 | 233,832,537 | 238,886,264 | 270,644,347 | 266,837,916 | ||
| 4 years after year of occurrence | 283,750,168 | 245,898,744 | 255,549,812 | 229,118,262 | 237,422,941 | 269,327,405 | |||
| 5 years after year of occurrence | 279,036,814 | 243,246,940 | 251,874,520 | 230,089,064 | 235,266,092 | ||||
| 6 years after year of occurrence | 273,848,769 | 239,361,697 | 252,655,777 | 228,533,326 | |||||
| 7 years after year of occurrence | 271,275,009 | 238,448,945 | 247,509,999 | ||||||
| 8 years after year of occurrence | 263,385,521 | 236,727,536 | |||||||
| 9 years after year of occurrence | 262,219,177 | ||||||||
| 10 years after year of occurrence | 72,676,257 |
| Cumulative loss assessment | 262,219,177 | 236,727,536 | 247,509,999 | 228,533,326 | 235,266,092 | 269,327,405 | 266,837,916 | 275,224,075 | 263,456,383 | 319,180,313 | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cumulative payments until balance sheet date | 256,035,750 | 227,649,647 | 240,138,221 | 214,837,777 | 221,207,179 | 252,083,816 | 245,145,027 | 244,049,910 | 215,456,620 | ||||
| Claims provisions balance at the beginning of the period | 84,637,874 | 7,848,214 | 11,077,127 | 14,021,740 | 16,430,171 | 18,301,704 | 22,104,252 | 28,917,386 | 49,865,011 | 133,959,215 | 387,162,693 | ||
| Settled during the period | 4,208,051 | 498,443 | 277,829 | 1,504,184 | 1,178,884 | 2,085,942 | 3,543,721 | 4,229,408 | 12,906,141 | 52,186,062 | 161,267,044 | 243,885,708 | |
| Claims provisions balance | 68,468,206 | 6,183,427 | 9,077,889 | 7,371,777 | 13,695,549 | 14,058,913 | 17,243,589 | 21,692,890 | 31,174,165 | 47,999,764 | 157,913,269 | 394,879,438 |
The liability adequacy test for life insurance provisions was performed as at 31 December 2021 by the Group’s certified actuaries.
Assumptions about mortality, longevity and morbidity rates are based on internal analyses of the company’s life insurance portfolio, the data of national statistical offices, the data of reinsurers and other sources.
The model uses the probability of an early termination (lapse) of the insurance contract or discontinuation of premium payments determined based on the lapse analysis of life insurance contracts in past years. The Company continuously monitors the persistency of insurance policies by policy term and type of insurance, adjusting assumptions accordingly.
The model takes into account policy handling/maintenance expenses, claim handling expenses and asset management expenses, as determined based on the cost analysis of an individual insurance company of the Group in previous years and business plans of insurance companies in the next strategy period. Estimated future expenses are increased annually in line with the expected inflation rate.
In the case of insurance policies of which monthly premium changes and is directly or indirectly dependent on wage growth, premium growth will be taken into account in the future in accordance with the expected wage growth rate.
In calculating the present value, (risk-free) interest rate term structure (yield curve) is used, which is determined based on yields of the relevant local government debt securities (bonds) denominated in the currency of policy entitlements as at the valuation date, with the latter adjusted to take into account future surplus yields of held-to-maturity investments:
The determination of the profit participation rate is at the discretion of each insurance company of the Group and regulated by internal rules. The estimated future allocation of bonuses is in line with the expected performance, past profit allocation rates and the policyholders’ reasonable expectations.
In the model, profit as surplus over the technical interest rate of the policy is allocated to with-profits policies. The allocation is determined based on mathematical provisions as at the end of the financial year.
Based on the data available, the LAT results confirm the sufficient amount of provisions formed for most insurance companies in the Group, with the exception of Zavarovalnica Triglav’s guarantee funds backing supplemental voluntary pension insurance, disclosing a total deficit of EUR 12,257,283 as at 31 December 2021 (2020: EUR 15,348,574). Due to the decrease in the deficit compared to the preceding year, other insurance technical provisions were released in the amount of EUR 3,091,290.
The valuation of liabilities mainly depends on insurance technical parameters such as mortality, lapse rate, operating expenses and the probability of policyholders deciding to opt for pension annuity and future increase in the life expectancy of the population. Parameters are sensitivity tested in order to assess the impact of changes to the above-mentioned variables on future liabilities, the level of provisions and net profit or loss for the year. These changes are potentially practicable changes in the above parameters, which could significantly impact the future performance of insurance companies. Individual sensitivity analyses take into account the change of a selected parameter with all the remaining variables unchanged, without accounting for the value of assets backing the liabilities.
| The level of deficit using changed parameters | Zavarovalnica Triglav |
|---|---|
| Increased probability of mortality by 10% | 10,461,687 |
| Decreased probability of mortality by 10% | 16,967,713 |
Increased lapse rate by 10% 12,257,283
Decreased lapse rate by 10% 12,257,283
Increased costs by 10% 12,967,935
Increased share of policyholders who will decide to buy a pension annuity by 10% 12,257,283
Zero increase in life expectancy of the population 12,257,283
For Triglav Osiguranje a.d.o., Beograd, Triglav Osiguranje d.d., Sarajevo, Lovćen životna osiguranja a.d., Podgorica, Triglav Osiguranje d.d., Zagreb, Triglav Osiguranje Život, a.d. Skopje and Triglav, pokojninska družba d.d., the LAT showed an adequate amount of provisions formed even in the event of changed parameters.
The liability adequacy test for non-life insurance provisions was performed as at 31 December 2021 by the Group’s certified actuaries.
The LAT results for Zavarovalnica Triglav show that provisions for unearned premium together with provisions for unexpired risks are formed in an adequate amount. No additional provisions had to be made.
Based on the liability adequacy test for health insurance provisions, a deficit in the amount of EUR 21,951,153 was established as at 31 December 2021 (EUR 18,092,156 as at 31 December 2020). Therefore, provisions for unexpired risks in the amount of EUR 3,858,997 were additionally created in 2021. The provisions are intended for covering future healthcare service surcharges, which will be subsequently determined by the minister responsible for health.
In the context of testing the adequacy of provisions, the LAT for liabilities paid out as annuities was carried out. The following assumptions were taken into account in the calculation:
| Triglav Group | Zavarovalnica Triglav | ||||
|---|---|---|---|---|---|
| in EUR | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
| Provisions for unused leave | 4,573,999 | 4,680,123 | 3,665,467 | 3,858,499 | |
| Provisions for retirement benefits | 10,914,184 | 10,765,010 | 7,552,987 | 7,489,893 | |
| Provisions for jubilee payments | 2,183,950 | 2,336,020 | 1,623,850 | 1,724,972 | |
| TOTAL | 17,672,133 | 17,781,153 | 12,842,304 | 13,073,364 |
The following estimates and assumptions were taken into account in the calculation of provisions for pensions and retirement benefits:
| Provisions for unused leave | Provisions for retirement benefits | Provisions for jubilee payments | TOTAL | |
|---|---|---|---|---|
| As at 1 January 2020 | 4,281,300 | 9,540,429 | 2,051,316 | 15,873,046 |
| Use of provisions in the year | -3,926,696 | -219,908 | -215,504 | -4,362,108 |
| Release of provisions in the year | -46,551 | -9,623 | -10,829 | -67,003 |
| Creation of provisions in the year | 4,373,293 | 1,464,773 | 513,547 | 6,351,613 |
| Exchange rate difference | -1,223 | -10,661 | -2,510 | -14,394 |
| As at 31 December 2020 | 4,680,123 | 10,765,010 | 2,336,020 | 17,781,153 |
| Use of provisions in the year | -4,333,805 | -347,319 | -179,750 | -4,860,874 |
| Release of provisions in the year | -34,756 | -135,251 | -73,559 | -243,566 |
| Creation of provisions in the year | 4,262,209 | 627,828 | 100,499 | 4,990,536 |
| Exchange rate difference | 228 | 3,916 | 740 | 4,884 |
| As at 31 December 2021 | 4,573,999 | 10,914,184 | 2,183,950 | 17,672,133 |
| Provisions for unused leave | Provisions for retirement benefits | Provisions for jubilee payments | TOTAL | |
|---|---|---|---|---|
| As at 1 January 2020 | 3,525,883 | 6,909,641 | 1,456,925 | 11,892,449 |
| Use of provisions in the year | -3,525,883 | -118,256 | -168,613 | -3,812,752 |
| Creation of provisions in the year | 3,858,499 | 698,508 | 436,660 | 4,993,667 |
| As at 31 December 2020 | 3,858,499 | 7,489,893 | 1,724,972 | 13,073,364 |
| Use of provisions in the year | -3,858,499 | -176,487 | -149,318 | -4,184,304 |
| Creation of provisions in the year | 3,665,467 | 239,581 | 48,196 | 3,953,244 |
| As at 31 December 2021 | 3,665,467 | 7,552,987 | 1,623,850 | 12,842,304 |
| Provisions for retirement benefits | Provisions for jubilee payments | TOTAL | |
|---|---|---|---|
| As at 1 January 2020 | 9,540,429 | 2,051,316 | 11,591,745 |
| Current service cost | 1,022,694 | 143,549 | 1,166,243 |
| Interest cost | 31,504 | 360 | 31,864 |
| Actuarial gains/losses due to: | |||
| - changes in demographic assumptions | -453,169 | 18,269 | -434,900 |
| - changes in financial assumptions | 693,708 | 180,029 | 873,737 |
| - experience adjustments | 424,211 | 127,903 | 552,114 |
| Past service cost | -25,385 | -3,511 | -28,896 |
| Benefits paid during the year | -423,849 | 2,023 | -421,826 |
| Gains/losses up on payment | -34,473 | -181,409 | -215,882 |
|---|---|---|---|
| Liabilities recognised in business combinations | 0 | 0 | 0 |
| Exchange rate difference | -10,660 | -2,509 | -13,169 |
| As at 31 December 2020 | 10,765,010 | 2,336,020 | 13,101,030 |
| Current service cost | 583,976 | 112,839 | 696,815 |
| Interest cost | -2,112 | -4,648 | -6,760 |
| Actuarial gains/losses due to: | |||
| - changes in demographic assumptions | 82,936 | 26 | 82,962 |
| - changes in financial assumptions | -391,422 | -17,322 | -408,744 |
| - experience adjustments | 549,748 | -70,007 | 479,741 |
| Past service cost | -36,553 | 1,329 | -35,224 |
| Benefits paid during the year | -536,461 | -179,210 | |
| Gains/losses up on payment | -104,854 | 4,183 | -100,671 |
| Liabilities recognised in business combinations | 0 | 0 | 0 |
| Exchange rate difference | 3,916 | 740 | 4,656 |
| As at 31 December 2021 | 10,914,184 | 2,183,950 | 13,098,134 |
| Parameter | Parameter change | 2021 | 2020 | |
|---|---|---|---|---|
| Interest rate | shift in the discount curve by +0.25% | -258,706 | -290,008 | |
| shift in the discount curve by -0.25% | 261,833 | 301,604 | ||
| Wage growth | change in annual wage growth by +0.5% | 530,849 | 519,406 | |
| change in annual wage growth by -0.5% | -478,481 | -461,977 | ||
| Mortality rate | constant increase in mortality by +20% | -97,169 | -86,980 | |
| constant increase in mortality by -20% | 99,322 | 88,662 | ||
| Early employment termination | shift in the expense curve by +20% | -331,476 | -299,031 | |
| shift in the expense curve by -20% | 385,064 | 338,898 |
| Provisions for retirement benefits | Provisions for jubilee payments | TOTAL | ||||
|---|---|---|---|---|---|---|
| As at 1 January 2020 | 6,909,641 | 1,456,925 | 8,366,566 | |||
| Current service cost | 395,878 | 112,350 | 508,228 | |||
| Interest expenses | 19,553 | 269 | 19,822 | |||
| Actuarial gains/losses due to: | ||||||
| - change in demographic assumptions | -415,875 | 18,269 | -397,606 | |||
| - change in financial assumptions | 596,820 | 142,612 | 739,432 | |||
| - experience adjustments | 479,754 | 127,041 | 606,795 | |||
| Profit/loss up on payment | -118,256 | -168,613 | -286,869 | |||
| Termination payments during the year | -377,622 | 36,119 | -341,503 | |||
| As at 31 December 2020 | 7,489,893 | 1,724,972 | 9,214,865 | |||
| Current service cost | 444,288 | 140,920 | 585,208 | |||
| Interest expenses | -11,952 | -4,690 | -16,642 | |||
| Actuarial gains/losses due to: | ||||||
| - change in demographic assumptions | 0 | 0 | 0 | |||
| - change in financial assumptions | -358,878 | -21,065 | -379,943 | |||
| - experience adjustments | 564,548 | -71,018 | 493,530 | |||
| Profit/loss up on payment | -148,442 | -149,318 | -297,760 | |||
| Termination payments during the year | -426,470 | 4,049 | -422,421 | |||
| As at 31 December 2021 | 7,552,987 | 1,623,850 | 9,176,837 |
| Triglav Group | Zavarovalnica Triglav | |
|---|---|---|
| As at 1 January 2020 | 2,750,400 | 732,811 |
| Increase (creation) | 588,515 | 37,146 |
| Decrease (draw down) | -529,293 | 0 |
| Exchange rate difference | -521 | 0 |
| As at 31 December 2020 | 2,809,101 | 769,957 |
| Increase (creation) | 831,897 | 281,336 |
| Decrease (draw down) | -660,262 | -226,313 |
| Release | -468,556 | -466,000 |
| Exchange rate difference | 356 | 0 |
| As at 31 December 2021 | 2,512,536 | 358,980 |
| Triglav Group | Zavarovalnica Triglav | |
|---|---|---|
| As at 1 January 2020 | 13,142,556 | 11,661,540 |
| Increase | 2,808,670 | 2,550,528 |
| Decrease | -1,330,482 | -1,995,317 |
| As at 31 December 2020 | 13,940,270 | 12,216,751 |
|---|---|---|
| – increase | 2,392,637 | 2,011,611 |
| – decrease | -2,985,372 | -2,356,611 |
| As at 31 December 2021 | 13,347,535 | 11,871,751 |
| As at 1 January 2020 | 23,197,166 | 17,368,219 |
|---|---|---|
| – increase | 5,252,643 | 4,379,694 |
| – decrease | -68,140 | 0 |
| As at 31 December 2020 | 27,701,195 | 21,747,913 |
| – increase | 4,367,913 | 4,302,528 |
| – decrease | -10,271,963 | -9,965,958 |
| As at 31 December 2021 | 21,797,145 | 16,084,484 |
Over 90% of other provisions have a maturity of more than 12 months. As part of other provisions, provisions were created for Triglav Skladi’s savings plans in the amount of EUR 758 thousand. The remaining provisions relate to provisions for legal disputes, provisions for property, plant and equipment acquired free of charge and provisions for received government grants.
Presented below is the movement of deferred tax assets and liabilities in non-offset amounts. Deferred tax assets are recognised for deductible temporary differences arising mainly from impairment of receivables (for the Group: EUR 7,943,378, for Zavarovalnica Triglav: EUR 7,447,491), financial investments (for the Group: EUR 3,708,803, for Zavarovalnica Triglav: EUR 3,083,805) and real property (for the Group: EUR 330,596, for Zavarovalnica Triglav: EUR 302,941) and provisions for retirement benefits and jubilee payments (for the Group: EUR 1,314,082, for Zavarovalnica Triglav: EUR 1,037,513). Deferred tax assets are not recognised from impairments of investments in subsidiaries and associates disclosed in the separate financial statements. Deferred tax liabilities are mostly recognised due to the valuation of available-for-sale financial assets (for the Group: EUR 20,669,864, for Zavarovalnica Triglav: EUR 16,084,484).
The offset balance of deferred tax assets and liabilities at the level of individual Group members is presented by tax jurisdiction and the offset amount of deferred tax at the level of individual jurisdiction.
| Tax jurisdiction | Deferred tax assets | Deferred tax liabilities | Total deferred tax | Deferred tax assets | Deferred tax liabilities | Total deferred tax |
|---|---|---|---|---|---|---|
| Slovenia | 13,123,103 | -20,325,169 | -7,202,066 | 13,596,201 | -26,018,022 | -12,421,821 |
| Croatia | 66,533 | -703,696 | -637,163 | 272,316 | -954,010 | -681,694 |
| Montenegro | 120,850 | -505,058 | -384,208 | 36,143 | -472,865 | -436,722 |
| Bosnia and Herzegovina | 10,789 | -115,492 | -104,703 | 4,314 | -154,360 | -150,046 |
| North Macedonia | 0 | -147,730 | -147,730 | 5,061 | -101,938 | -96,877 |
| Serbia | 26,260 | 0 | 26,260 | 26,235 | 0 | 26,235 |
| TOTAL DEFERRED TAX | 13,347,535 | -21,797,145 | -8,449,610 | 13,940,270 | -27,701,195 | -13,760,926 |
| Triglav Group | Zavarovalnica Triglav | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
| Loans from banks | 414,897 | 634,748 | 0 | 0 | ||
| Financial liabilities for acquired securities | 5,170 | 0 | 5,170 | 0 | ||
| Liabilities for dividends | 656,594 | 657,300 | 656,594 | 657,300 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| Other financial liabilities | 2,008,986 | 1,603,786 | 1,028,822 | 976,596 |
| TOTAL | 3,085,647 | 2,895,834 | 1,690,586 | 1,633,896 |
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
|---|---|---|---|---|
| 1 year | 3,466,114 | 3,195,958 | 1,167,179 | 1,079,119 |
| 2 years | 2,525,541 | 2,981,134 | 949,773 | 957,266 |
| 3 years | 1,971,159 | 1,979,579 | 785,757 | 789,063 |
| 4 years | 1,680,346 | 835,021 | 702,087 | 234,303 |
| 5 years | 1,179,380 | 550,713 | 494,262 | 121,445 |
| More than 5 years | 391,868 | 529,028 | 544,785 | 494,608 |
| Foreign exchange differences | 60,399 | -45,901 | 0 | 0 |
| TOTAL | 11,274,806 | 10,025,532 | 4,643,844 | 3,675,805 |
Other financial liabilities of the Company are liabilities from the squeeze-out of the Company’s minority shareholders. At Group level, other financial liabilities include liabilities of the reinsurance company for retained deposits of cedants.
To calculate the net present value of future 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.
The table below shows the analysis of maturity of lease liabilities.
| Triglav Group | Zavarovalnica Triglav | |||||
|---|---|---|---|---|---|---|
| in EUR | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | ||
| DIRECT INSURANCE LIABILITIES | 19,450,557 | 16,801,856 | 10,182,945 | 10,636,904 | ||
| Liabilities to policyholders | 11,823,747 | 10,521,036 | 7,927,509 | 7,814,702 | ||
| Liabilities to insurance brokers | 1,289,593 | 966,894 | 1,142,535 | 808,446 | ||
| Other liabilities from direct insurance operations | 6,337,217 | 5,313,926 | 688,893 | 1,637,753 | ||
| Liabilities from direct insurance operations to Group companies | 0 | 0 | 424,008 | 376,003 | ||
| LIABILITIES FROM CO-INSURANCE AND REINSURANCE OPERATIONS | 41,241,465 | 48,940,738 | 24,678,609 | 19,824,185 | ||
| Liabilities for re/co-insurance premiums | 33,219,399 | 25,562,611 | 18,510,739 | 14,598,383 | ||
| Liabilities for co-insurers’ share of claims | 7,866,165 | 9,098,912 | 6,167,870 | 5,225,802 | ||
| Other re/co-insurance liabilities | 155,901 | 14,279,215 | 0 | 0 | ||
| CURRENT TAX LIABILITIES | 2,649,636 | 4,570,444 | 0 | 3,516,683 | ||
| TOTAL LIABILITIES FROM INSURANCE OPERATIONS | 63,341,658 | 70,313,038 | 34,861,554 | 33,977,772 |
| 31 Dec . 2021 | 31 Dec . 2020 | 31 Dec . 2021 | 31 Dec . 2020 | |
|---|---|---|---|---|
| Short-term liabilities to employees | 29,754,061 | 26,040,947 | 25,270,631 | 22,227,413 |
| Trade payables | 17,435,217 | 5,249,560 | 13,450,724 | 5,249,560 |
| Other short-term liabilities from insurance operations | 9,632,019 | 8,431,655 | 6,244,071 | 5,758,140 |
| Other short-term liabilities | 6,869,471 | 13,029,703 | 3,801,755 | 2,673,459 |
| Other long-term liabilities | 1,414,672 | 1,370,189 | 0 | 0 |
| Accrued interest on issued bonds | 419,521 | 419,521 | 419,521 | 419,521 |
| Short-term deferred income from charged interest on arrears | 3,319,240 | 1,759,420 | 3,319,240 | 1,759,420 |
| Other accruals | 17,115,118 | 11,986,410 | 2,626,151 | 2,300,352 |
| TOTAL | 85,959,319 | 68,287,405 | 55,132,093 | 40,387,864 |
All operating liabilities are short-term and fall due within 12 months.
| in EUR | Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| NON-LIFE INSURANCE | Gross written premium | 732,320,025 | 663,653,947 | 518,612,566 | 473,082,070 |
| Assumed re-insurance written premium | 165,013,147 | 139,910,457 | 86,288,445 | 70,736,329 | |
| Assumed co-insurance written premium | 7,166,838 | 3,679,918 | 1,108,482 | 968,779 | |
| Ceded co-insurance written premium | -6,708,680 | -4,522,997 | -2,556,301 | -2,307,095 |
| 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|
| Reinsurance written premium | -208,661,006 | -152,074,485 | -184,588,305 | -134,829,732 |
| Changes in gross provisions for unearned premiums | -27,574,814 | -11,498,329 | -13,596,976 | -1,719,996 |
| Changes in reinsurers’ share of unearned premiums | 15,524,038 | 4,631,041 | 5,954,593 | 4,279,137 |
| Net premium income on non-life insurance | 677,079,548 | 643,779,552 | 411,222,504 | 410,209,492 |
| LIFE INSURANCE | ||||
| Gross written premium | 250,137,276 | 230,808,276 | 188,340,610 | 174,468,691 |
| Assumed co-insurance written premium | 23,669 | 9,377 | 0 | 0 |
| Ceded co-insurance written premiums | -972,642 | -1,013,843 | -73,329 | -59,343 |
| Reinsurance written premium | -4,607,547 | -2,411,024 | -751,814 | -738,036 |
| Changes in gross provisions for unearned premiums | 3,353 | -14,316 | 16,936 | -13,028 |
| Changes in reinsurers’ share of unearned premiums | 326 | 175 | 93 | 69 |
| Net premium income on life insurance | 244,584,435 | 227,378,645 | 187,532,496 | 173,658,354 |
| HEALTH INSURANCE | ||||
| Gross written premium | 198,314,595 | 195,713,390 | 0 | 0 |
| Changes in gross provisions for unearned premiums | -132,527 | -116,761 | 0 | 0 |
| Net premium income on health insurance | 198,182,068 | 195,596,628 | 0 | 0 |
| TOTAL NET PREMIUM INCOME | 1,119,846,051 | 1,066,754,825 | 598,755,000 | 583,867,846 |
290
| Type of Insurance | Gross written premium | Co-insurers’ share in gross written premium | Ceded co-insurance written premium | Reinsurance written premium | Own share |
|---|---|---|---|---|---|
| NON-LIFE INSURANCE | 1,095,647,767 | 7,166,838 | -6,708,680 | -208,661,006 | 887,444,919 |
| Accident insurance | 39,130,478 | 212,297 | -324,080 | -1,145,210 | 37,873,485 |
| Health insurance | 206,710,349 | 856,987 | -254,644 | -770,136 | 206,542,556 |
| Land motor vehicle insurance | 157,378,102 | 46,559 | -187,585 | -14,622,091 | 142,614,985 |
| Railway insurance | 4,910,990 | 10,201 | -126,174 | -1,988,898 | 2,806,119 |
| Aircraft insurance | 7,284,977 | 0 | 0 | -3,780,515 | 3,504,462 |
| Marine Insurance | 18,209,242 | 140,003 | 0 | -2,865,578 | 15,483,667 |
| Cargo insurance | 11,404,091 | 0 | -588,173 | -2,087,197 | 8,728,721 |
| Fire and natural forces insurance | 114,457,118 | 1,555,417 | -1,359,902 | -42,807,649 | 71,844,984 |
| Other damage to property insurance | 229,947,365 | 3,980,633 | -2,293,835 | -79,227,479 | 152,406,684 |
| Motor TPL insurance | 180,798,516 | 12,403 | 0 | -20,907,171 | 159,903,748 |
| Aircraft liability insurance | 3,362,804 | 0 | 0 | -2,027,875 | 1,334,929 |
| Marine liability insurance | 2,436,261 | 0 | -16,000 | -306,603 | 2,113,658 |
| General liability insurance | 55,358,707 | 172,119 | -1,400,139 | -16,601,666 | 37,529,021 |
| Credit insurance | 30,674,964 | 0 | 0 | -10,207,909 | 20,467,055 |
| Suretyship insurance | 6,510,031 | 129,370 | -101,292 | -3,578,313 | 2,959,796 |
| Miscellaneous financial loss insurance | 6,731,191 | 50,849 | -8,618 | -4,881,327 | 1,892,095 |
| Legal expenses insurance | 615,445 | 0 | -48,238 | -73,152 | 494,055 |
| Travel assistance insurance | 19,727,136 | 0 | 0 | -782,237 | 18,944,899 |
| Type of Insurance | Gross written premium | Co-insurers’ share in gross written premium | Ceded co-insurance written premium | Reinsurance written premium | Own share |
|---|---|---|---|---|---|
| LIFE INSURANCE | 250,137,276 | 23,669 | -972,642 | -4,607,547 | 244,580,756 |
| Life insurance | 111,908,734 | 23,669 | -972,642 | -4,606,600 | 106,353,161 |
| Wedding insurance or birth insurance | 0 | 0 | 0 | 0 | 0 |
| Unit-linked life insurance | 117,592,407 | 0 | 0 | 0 | 117,592,407 |
| Tontines | 0 | 0 | 0 | 0 | 0 |
| Capital redemption insurance | 20,316,064 | 0 | 0 | 0 | 20,316,064 |
| Loss of income due to illness | 320,071 | 0 | 0 | -947 | 319,124 |
| 1,345,785,043 | 7,190,507 | -7,681,322 | -213,268,553 | 1,132,025,675 |
|---|---|---|---|---|
Non-life insurance also includes health insurance.
| in EUR | 2020 | Gross written premium | Co-insurers’ share in gross written premium | Ceded co-insurance written premium | Reinsurance written premium | Own share |
|---|---|---|---|---|---|---|
| NON-LIFE INSURANCE | ||||||
| Accident insurance | 40,020,368 | 105,847 | -297,347 | -961,007 | 38,867,861 | |
| Health insurance | 202,787,742 | 432,016 | -532,810 | -665,899 | 202,021,049 | |
| Land motor vehicle insurance | 155,385,206 | 25,242 | -373,428 | -12,783,098 | 142,253,922 | |
| Railway insurance | 4,266,260 | 0 | 0 | -1,227,523 | 3,038,737 | |
| Aircraft insurance | 4,676,653 | 0 | 0 | -2,467,191 | 2,209,462 | |
| Marine Insurance | 11,074,465 | 0 | -90,082 | -905,362 | 10,079,021 | |
| Cargo insurance | 8,129,301 | 0 | -485,408 | -1,789,252 | 5,854,641 | |
| Fire and natural forces insurance | 99,873,842 | 1,236,295 | -1,068,597 | -36,534,203 | 63,507,337 |
| Other damage to property insurance | 182,230,296 | 1,399,752 | -712,723 | -53,420,508 | 129,496,817 | ||
|---|---|---|---|---|---|---|---|
| Motor TPL insurance | 180,538,288 | 53,235 | 0 | -15,468,714 | 165,122,809 | ||
| Aircraft liability insurance | 2,593,392 | 0 | 0 | -1,407,445 | 1,185,947 | ||
| Marine liability insurance | 2,065,934 | 0 | 0 | -311,476 | 1,754,458 | ||
| General liability insurance | 49,707,802 | 121,234 | -599,776 | -10,872,253 | 38,357,007 | ||
| Credit insurance | 25,673,296 | 0 | 0 | -7,194,527 | 18,478,769 | ||
| Suretyship insurance | 5,392,700 | 281,659 | -236,655 | -2,112,584 | 3,325,120 | ||
| Miscellaneous financial loss insurance | 6,204,664 | 24,638 | -87,849 | -3,391,414 | 2,750,039 | ||
| Legal expenses insurance | 662,209 | 0 | -38,324 | -109,034 | 514,851 | ||
| Travel assistance insurance | 17,995,378 | 0 | 0 | -452,993 | 17,542,385 | ||
| Total non-life insurance | 999,277,796 | 3,679,918 | -4,522,999 | -152,074,483 | 846,360,232 |
| Life insurance | 107,496,268 | 9,377 | -1,013,841 | -2,410,205 | 104,081,599 |
|---|---|---|---|---|---|
| Wedding insurance or birth insurance | 0 | 0 | 0 | 0 | 0 |
| Unit-linked life insurance | 104,156,321 | 0 | 0 | 0 | 104,156,321 |
| Tontines | 0 | 0 | 0 | 0 | 0 |
| Capital redemption insurance | 18,880,523 | 0 | 0 | 0 | 18,880,523 |
| Loss of income due to illness | 275,162 | 0 | 0 | -821 | 274,341 |
| Total life insurance | 230,808,274 | 9,377 | -1,013,841 | -2,411,026 | 227,392,784 |
| 1,230,086,070 | 3,689,295 | -5,536,840 | -154,485,509 | 1,073,753,016 |
|---|---|---|---|---|
| Insurance Class | Gross written premium | Co-insurers’ share in gross written premium | Ceded co-insurance written premium | Reinsurance written premium | Own share |
|---|---|---|---|---|---|
| NON-LIFE INSURANCE | |||||
| Accident insurance | 25,235,448 | 0 | -158,758 | -965,296 | 24,111,394 |
| Health insurance | 787,154 | 0 | -384,014 | 0 | 403,140 |
| Land motor vehicle insurance | 129,298,413 | 0 | 0 | -10,551,624 | 118,746,789 |
| Railway insurance | 4,614,328 | 0 | 0 | -1,435,278 | 3,179,050 |
| Aircraft insurance | 3,683,029 | 0 | 0 | -3,170,945 | 512,084 |
| Marine Insurance | 7,689,364 | 0 | 0 | -3,640,157 | 4,049,207 |
| Cargo insurance | 6,858,896 | 0 | -588,173 | -1,893,395 | 4,377,328 |
| Fire and natural forces insurance | 59,690,602 | 1,106,031 | -434,112 | -23,927,164 | 36,435,357 |
|---|---|---|---|---|---|
| Other damage to property insurance | 165,026,243 | 0 | -73,282 | -94,113,835 | 70,839,126 |
| Motor TPL insurance | 109,621,258 | 0 | 0 | -13,863,079 | 95,758,179 |
| Aircraft liability insurance | 2,779,402 | 0 | 0 | -2,504,422 | 274,980 |
| Marine liability insurance | 1,390,962 | 0 | -16,000 | -170,538 | 1,204,424 |
| General liability insurance | 42,716,918 | 2,451 | -845,106 | -15,547,069 | 26,327,194 |
| Credit insurance | 21,883,872 | 0 | 0 | -6,241,117 | 15,642,755 |
| Suretyship insurance | 3,600,839 | 0 | 0 | -1,903,355 | 1,697,484 |
| Miscellaneous financial loss insurance | 2,948,793 | 0 | -8,618 | -3,679,086 | -738,911 |
| Legal expenses insurance | 595,434 | 0 | -48,238 | -67,476 | 479,720 |
| Travel assistance insurance | 16,480,055 | 0 | 0 | -914,469 | 15,565,586 |
| Total non-life insurance | 604,901,010 | 1,108,482 | -2,556,301 | -184,588,305 | 418,864,886 |
| Life insurance | 79,238,943 | 0 | -73,329 | -717,100 | 78,448,514 |
|---|---|---|---|---|---|
| Wedding insurance or birth insurance | 0 | 0 | 0 | 0 | 0 |
| Unit-linked life insurance | 88,785,604 | 0 | 0 | -34,715 | 88,750,889 |
| Tontines | 0 | 0 | 0 | 0 | 0 |
| Capital redemption insurance | 20,316,064 | 0 | 0 | 0 | 20,316,064 |
| Loss of income due to illness | 0 | 0 | 0 | 0 | 0 |
| Total life insurance | 188,340,611 | 0 | -73,329 | -751,815 | 187,515,467 |
| 793,241,621 | 1,108,482 | -2,629,630 | -185,340,120 | 606,380,353 |
|---|---|---|---|---|
| in EUR | 2020 | Gross written premium | Co-insurers’ share in gross written premium | Ceded co-insurance written premium | Reinsurance written premium | Own share |
|---|---|---|---|---|---|---|
| NON-LIFE INSURANCE | ||||||
| Accident insurance | 25,696,568 | 0 | -155,293 | -878,266 | 24,663,009 | |
| Health insurance | 926,557 | 0 | -402,038 | 0 | 524,519 | |
| Land motor vehicle insurance | 127,536,358 | 0 | 0 | -10,109,680 | 117,426,678 | |
| Railway insurance | 4,175,198 | 0 | 0 | -833,423 | 3,341,775 | |
| Aircraft insurance | 2,390,519 | 0 | 0 | -2,238,203 | 152,316 | |
| Marine Insurance | 994,760 | 0 | 0 | -462,673 | 532,087 | |
| Cargo insurance | 5,321,053 | 0 | -485,382 | -1,871,186 | 2,964,485 | |
| Fire and natural forces insurance | 57,326,056 | 965,939 | -428,503 | -21,598,977 | 36,264,515 |
| Other damage to property insurance | 130,253,822 | 0 | -85,361 | -64,758,546 | 65,409,915 |
|---|---|---|---|---|---|
| Motor TPL insurance | 106,754,958 | 0 | 0 | -11,037,689 | 95,717,269 |
| Aircraft liability insurance | 1,693,326 | 0 | 0 | -1,556,733 | 136,593 |
| Marine liability insurance | 950,911 | 0 | 0 | -134,428 | 816,483 |
| General liability insurance | 38,617,047 | 2,841 | -702,639 | -10,942,514 | 26,974,735 |
| Credit insurance | 19,137,654 | 0 | 0 | -4,406,029 | 14,731,625 |
| Suretyship insurance | 2,775,316 | 0 | 0 | -1,416,006 | 1,359,310 |
| Miscellaneous financial loss insurance | 2,574,281 | 0 | -9,553 | -1,693,204 | 871,524 |
| Legal expenses insurance | 641,309 | 0 | -38,324 | -104,841 | 498,144 |
| Travel assistance insurance | 16,052,704 | 0 | 0 | -787,334 | 15,265,370 |
| Total non-life insurance | 543,818,397 | 968,780 | -2,307,093 | -134,829,732 | 407,650,352 |
| Life insurance | 79,466,230 | 0 | -59,343 | -717,016 | 78,689,871 |
|---|---|---|---|---|---|
| Wedding insurance or birth insurance | 0 | 0 | 0 | 0 | 0 |
| Unit-linked life insurance | 76,121,938 | 0 | 0 | -21,020 | 76,100,918 |
| Tontines | 0 | 0 | 0 | 0 | 0 |
| Capital redemption insurance | 18,880,523 | 0 | 0 | 0 | 18,880,523 |
| Loss of income due to illness | 0 | 0 | 0 | 0 | 0 |
| Total life insurance | 174,468,691 | 0 | -59,343 | -738,036 | 173,671,312 |
| TOTAL | 718,287,088 | 968,780 | -2,366,436 | -135,567,768 | 581,321,664 |
|---|---|---|---|---|---|
| Triglav Group | Zavarovalnica Triglav | ||||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| INTEREST INCOME FROM FINANCIAL ASSETS | |||||
| – available for sale | 18,961,233 | 23,459,079 | 10,629,506 | 14,909,519 | |
| – loans and deposits | 1,312,236 | 1,842,659 | 852,057 | 1,334,800 | |
| – held to maturity | 7,267,273 | 7,768,631 | 6,692,393 | 6,915,006 | |
| – at fair value through profit and loss | 6,740,537 | 8,985,433 | 1,689,166 | 3,068,915 | |
| Interest income | 34,281,279 | 42,055,802 | 19,863,122 | 26,228,240 | |
| DIVIDENDS FROM | |||||
| – available-for-sale financial assets | 4,517,664 | 3,727,040 | 4,285,150 | 3,520,893 | |
| – financial assets at fair value through profit and loss | 1,510,514 | 758,751 | 539,485 | 276,448 | |
| – subsidiaries and associates | 41,552 | 0 | 8,000,000 | 0 | |
| TOTAL DIVIDENDS | 6,069,730 | 4,485,791 | 12,824,635 | 3,797,341 | |
| Fair value gains | 90,078,182 | 33,085,187 | 73,502,582 | 21,180,963 | |
| Realised gains on disposals | 16,301,340 | 40,162,889 | 14,888,504 | 37,288,158 | |
| Other financial income | 8,608,640 | 3,289,780 | 2,713,940 | 989,574 | |
| Profit on investments accounted for using the |
| equity method | 1,444,054 | 436,610 | 0 | 0 |
|---|---|---|---|---|
| TOTAL INVESTMENT INCOME | 156,783,225 | |||
| 123,516,059 | 123,792,783 | 89,484,277 |
in EUR
| Triglav Group | Zavarovalnica Triglav | 2021 | 2020 | |||
|---|---|---|---|---|---|---|
| Fair value losses | 16,138,516 | 16,644,853 | ||||
| Realised loss on disposals | 7,122,739 | 6,941,491 | 6,870,017 | 5,719,183 | ||
| Loss on disposals of subsidiaries | 0 | 0 | 0 | 0 | ||
| Loss on impairment of financial assets | 33,628 | 1,971,302 | 1,066,400 | 5,550,209 | ||
| Other finance costs | 8,537,903 | 15,435,565 | 5,390,136 | 6,982,468 | ||
| - Net exchange losses | 1,526,841 | 7,995,342 | 694,116 | 2,120,782 | ||
| - Other expenses from financial assets and liabilities | 2,612,849 | 2,970,517 | 1,103,281 | 1,106,372 | ||
| - Asset management costs | 4,398,213 | 4,469,706 | 3,592,739 | 3,755,314 | ||
| Loss on equity investments in associates accounted for using the equity method | 145,632 | 139,422 | 0 | 0 | ||
| TOTAL EXPENSES FROM FINANCIAL ASSETS | 31,978,418 | 41,132,633 | 19,453,734 | 29,605,669 |
in EUR
| Triglav Group | Zavarovalnica Triglav | 2021 | 2020 | |
|---|---|---|---|---|
| Financial assets recognised at fair value through profit/loss | 73,908,119 | 16,395,317 | 67,343,854 | 9,782,156 |
| – gains | 89,984,986 | 32,983,586 | 73,409,386 | 21,079,372 |
| – losses | -16,076,867 | -16,588,269 | -6,065,532 | -11,297,215 |
| Derivative financial instruments | 31,547 | 45,007 | 31,547 | 44,998 |
| – gains | 93,196 | 101,601 | 93,196 | 101,592 |
| – losses | -61,649 | -56,594 | -61,649 | -56,594 |
| NET GAINS FROM CHANGES IN FAIR VALUE | 73,939,666 | 16,440,324 | 67,375,401 | 9,827,154 |
Gains from changes in fair value are described in detail in Section 4.4 and gains on disposal in Section 4.5. Data in the table also include income from investments in associates.
Losses from changes in fair value are described in detail in Section 4.4 and losses on disposal of financial assets in Section 4.5. Data in the table also include expenses from investments in associates.
Expenses due to impairment of financial assets of Zavarovalnica Triglav also include expenses due to impairment of investments in subsidiaries in the total amount of EUR 607,000 (see Section 3.5).
Net gains/losses from changes in the fair value of financial assets include net unrealised gains/losses on unit-linked life insurance assets.
| Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| Financial assets recognised at fair value through profit/loss | 3,730,480 | 3,504,623 | 3,487,484 | 3,642,824 |
| – realised gains on disposals | 6,380,071 | 6,725,069 | 5,972,200 | 6,591,125 |
| – realised losses on disposals | -2,649,591 | -3,220,446 | -2,484,716 | -2,948,301 |
| Available-for-sale financial assets | 5,536,389 | 30,268,801 | 4,665,592 | 28,486,674 |
| – realised gains on disposals | 9,870,950 | 33,427,713 | 8,912,305 | 30,695,423 |
| – realised losses on disposals | -4,334,561 | -3,158,912 | -4,246,713 | -2,208,749 |
| Derivatives | -92,268 | -552,026 | -138,587 | -560,523 |
| – gains on disposal | 46,319 | 10,107 | 0 | 1,610 |
| – losses on disposal | -138,587 | -562,133 | -138,587 | -562,133 |
| Loans and deposits | 4,000 | 0 | 4,000 | 0 |
| – gains on disposal | sal | 4,000 | 0 | 4,000 | 0 |
|---|---|---|---|---|---|
| – losses on disposal | 0 | 0 | 0 | 0 | |
| Held to maturity financial assets | 0 | 0 | 0 | 0 | |
| – gains on disposal | 0 | 0 | 0 | 0 | |
| – losses on disposal | 0 | 0 | 0 | 0 |
TOTAL REALISED GAINS AND LOSSES
| Triglav Group | Zavarovalnica Triglav | |
|---|---|---|
| 2021 | 9,178,601 | 33,221,398 |
| 2020 | 8,018,488 | 31,568,975 |
| Fees and commission income | 38,916,088 | 30,649,757 | 38,196,377 | 30,080,891 |
|---|---|---|---|---|
| – reinsurance commission income | 38,817,938 | 30,584,802 | 38,098,226 | 30,015,937 |
| – investment management services | 98,150 | 64,955 | 98,151 | 64,954 |
| Other income from insurance operations | 9,878,212 | 10,357,236 | 7,190,656 | 8,029,138 |
| – income from sale of green cards for motor vehicles | 1,560,468 | 1,811,690 | 758,052 | 843,416 |
| – income from claims settled for other insurance companies | 580,433 | 671,161 | 18,026 | 474,269 |
| – income from assistance services | 30,508 | 17,245 | 23,622 | 1,612 |
| – other income from insurance operations | 3,474,891 | 3,127,731 | 2,522,303 | 2,288,777 |
| – interest from receivables | 4,231,912 | 4,729,408 | 3,868,653 | 4,421,064 |
OTHER INSURANCE INCOME
| Triglav Group | Zavarovalnica Triglav | |
|---|---|---|
| 2021 | 48,794,300 | 41,006,993 |
| 2020 | 45,387,033 | 38,110,029 |
Under income from other services, the Company discloses income from the provision of services for Group companies in the amount of EUR 1,664,984 (2020: EUR 1,337,658), income from deductible VAT and the release of provisions for lawsuits in the amount of EUR 661,450 (2020: EUR 139,908), income from incentives for employing people with disabilities in the amount of EUR 201,482 (2020: EUR 193,974) and other income in the amount of EUR 446,903 (2020: EUR 415,158).
| in EUR | Triglav Group | Zavarovalnica Triglav | |
|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 |
| Gross claims settled | 354,171,578 | 349,229,525 | 248,226,326 | 258,513,244 |
|---|---|---|---|---|
| Gross claims paid from inward reinsurance | 53,980,157 | 49,605,448 | 16,384,151 | 14,637,963 |
| Gross claims paid from coinsurance | 1,153,280 | 270,798 | 1,280 | -213,364 |
| Income from gross subrogated receivables | -16,050,134 | -18,250,528 | -11,885,927 | -14,900,037 |
| Reinsurers’ share of gross claims settled | -41,047,824 | -31,431,285 | -34,824,864 | -30,576,201 |
| Co-insurers’ share of gross claims settled | -1,913,225 | -1,872,648 | -744,339 | -870,652 |
| Change in gross claims provisions | 39,093,301 | 29,208,174 | 14,505,097 | 1,582,680 |
| Change in gross claims provisions for re/co-insurer’s share | -26,038,184 | -17,309,578 | -24,169,631 | -3,167,422 |
| Net claims incurred on non-life insurance | 363,348,949 | 359,449,906 | 207,492,093 | 225,006,211 |
| Gross claims settled | 185,673,862 | 172,878,283 | 156,142,551 | 150,240,333 |
|---|---|---|---|---|
| Coinsurers’ shares and gross claims | -1,064,815 | -736,112 | -8,369 | -3,704 |
| Reinsurers' share in gross claims | -859,879 | -239,544 | -241,386 | -238,532 |
| Change in gross claims provisions | 1,753,071 | 624,021 | 1,802,537 | 356,178 |
| Change in reinsurers' share in gross claims provisions | -61,517 | -90,927 | -50,202 | -23,540 |
| Year | Amount |
|---|---|
| Current Year | 185,440,722 |
| Previous Year 1 | 172,435,721 |
| Previous Year 2 | 157,645,131 |
| Previous Year 3 | 150,330,735 |
| Gross claims settled | 157,763,966 |
|---|---|
| Previous Year 1 | 143,834,955 |
| Previous Year 2 | 0 |
| Previous Year 3 | 0 |
| Income from gross exercised subrogation receivables | -112,659 |
|---|---|
| Previous Year 1 | -124,254 |
| Previous Year 2 | 0 |
| Previous Year 3 | 0 |
| Coinsurers’ shares in gross claims paid | 1,283 |
|---|---|
| Previous Year 1 | 0 |
| Previous Year 2 | 0 |
| Previous Year 3 | 0 |
| Change in gross claims provisions | 1,402,895 |
|---|---|
| Previous Year 1 | 107,716 |
| Previous Year 2 | 0 |
| Previous Year 3 | 0 |
| Change in claims provisions for reinsurers’ share | 2,828 |
|---|---|
| Previous Year 1 | 1,628 |
| Previous Year 2 | 0 |
| Previous Year 3 | 0 |
| Equalisation scheme expenses | 7,180,804 |
|---|---|
| Previous Year 1 | 7,926,103 |
| Previous Year 2 | 0 |
| Previous Year 3 | 0 |
| Current Year | 166,239,117 |
|---|---|
| Previous Year 1 | 151,746,148 |
| Previous Year 2 | 0 |
| Previous Year 3 | 0 |
| Current Year | 715,028,788 |
|---|---|
| Previous Year 1 | 683,631,775 |
| Previous Year 2 | 365,137,224 |
| Previous Year 3 | 375,336,947 |
| Triglav Group | 2021 | Gross claims | Gross claims paid from coinsurance | Coinsurers’ shares | Income from subrogated receivables | Reinsurers' share | Net claims incurred | |||
|---|---|---|---|---|---|---|---|---|---|---|
| NON-LIFE INSURANCE | Accident insurance | 23,308,302 | 58,455 | -172,853 | -5,593 | -595,720 | 22,592,591 | |||
| Health insurance | 162,804,419 | 556,111 | -153,747 | -113,080 | -331,604 | 162,762,099 | ||||
| Land motor vehicle insurance | 98,314,466 | 21,449 | -291,003 | -3,460,340 | -6,142,260 | 88,442,312 | ||||
| Railway insurance | 1,442,477 | 0 | 0 | -550,087 | -102 | 892,288 | ||||
| Aircraft insurance | 1,654,818 | 0 | 0 | 0 | -1,040,613 | 614,205 | ||||
| Marine Insurance | 5,407,210 | 515 | -48,081 | 0 | -74,632 | 5,285,012 | ||||
| Cargo insurance | 2,877,212 | 0 | -220,857 | -173,572 | -115,209 | 2,367,574 | ||||
| Fire and natural forces insurance | 49,815,866 | 4,317 | -67,341 | -224,422 | -12,081,808 | 37,446,612 | ||||
| Other damage to property insurance | 72,522,993 | 443,977 | -468,072 | -418,055 | -10,045,103 | 62,035,740 | ||||
| Motor TPL insurance | 100,895,715 | 17,480 | 0 | -2,852,923 | -6,842,066 | 91,218,206 | ||||
| Aircraft liability insurance | 560,903 | 0 | 0 | 0 | -371,568 | 189,335 | ||||
| Marine liability insurance | 560,882 | 0 | -24,041 | 0 | -1,400 | 535,441 | ||||
| General liability insurance | 13,968,126 | 50,976 | 0 | -461,694 | -221,470 | -401,868 | 12,934,070 | |||
| Credit insurance | 12,285,635 | 0 | 0 | -7,441,529 | -1,599,993 | 3,244,113 | ||||
| Surety ship insurance | 1,518,451 | 0 | 0 | -676,329 | -78,243 | 763,879 | ||||
| Miscellaneous financial losses insurance | 2,543,480 | 0 | 0 | 0 | -1,128,244 | 1,415,236 | ||||
| Legal expenses insurance | 66,885 | 0 | -4,254 | 0 | -334 | 62,297 | ||||
| Travel assistance insurance | 15,367,865 | 0 | 0 | -25,393 | -197,057 | 15,145,415 | ||||
| Total non-life insurance | 565,915,705 | 1,153,280 | -1,911,943 | -16,162,793 | -41,047,824 | 507,946,425 | ||||
| LIFE INSURANCE | Life insurance | 119,337,138 | 0 | -1,064,814 | 0 | -859,879 | 117,412,445 | |||
| Wedding insurance or birth insurance | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Unit-linked life insurance | 61,808,056 | 0 | 0 | 0 | 0 | 61,808,056 | ||||
| Tontines | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Capital redemption insurance | 4,425,926 | 0 | 0 | 0 | 0 | 4,425,926 | ||||
| Loss of income due to illness | 102,738 | 0 | 0 | 0 | 0 | 102,738 | ||||
| Total life insurance | 185,673,858 | 0 | -1,064,814 | 0 | -859,879 | 183,749,165 | ||||
| TOTAL | 751,589,563 | 1,153,280 | -2,976,757 | -16,162,793 | -41,907,703 | 691,695,590 |
Gross claims paid also include gross claims paid from inward reinsurance and equalisation scheme expenses for supplemental health insurance.
| Type of Insurance | Gross claims | Gross claims paid from coinsurance | Coinsurers’ shares | Income from subrogated receivables | Reinsurers' share | Net claims incurred | ||
|---|---|---|---|---|---|---|---|---|
| Accident insurance | 21,290,057 | 39,557 | -124,636 | -9,638 | -301,277 | 20,894,063 | ||
| Health insurance | 148,018,770 | 223,878 | -28,319 | -129,809 | -226,086 | 147,858,434 | ||
| Land motor vehicle insurance | 98,264,951 | 0 | -267,426 | -3,779,373 | -3,393,568 | 90,824,584 | ||
| Railway insurance | 703,145 | 0 | 0 | -144,574 | 0 | 558,571 | ||
| Aircraft insurance | 1,519,206 | 0 | 0 | 0 | -263,135 | 1,256,071 | ||
| Marine Insurance | 5,020,088 | 0 | -222,792 | -215,399 | -6,035 | 4,060,780 | ||
| Cargo insurance | 2,762,902 | 0 | -263,982 | -256,987 | 0 | -340,862 | 1,901,071 | |
| Fire and natural forces insurance | 43,487,374 | 630 | -129,842 | -753,002 | -4,710,921 | 37,894,239 | ||
| Other damage to property insurance | 71,466,410 | 0 | 181,023 | -349,858 | -338,752 | -8,545,192 | 62,413,631 | |
| Motor TPL insurance | 98,128,200 | 0 | 9,430 | 0 | -2,832,850 | -3,807,640 | 91,497,140 |
| 432,888 | 0 | 0 | 0 | -274,564 | 158,324 |
|---|---|---|---|---|---|
| 650,939 | 0 | -134,064 | -1,549 | -64,183 | 451,143 |
|---|---|---|---|---|---|
| 18,794,061 | 39,072 | -353,558 | -258,410 | -5,040,228 | 13,180,937 |
|---|---|---|---|---|---|
| 15,341,279 | 0 | 0 | -9,211,904 | -3,063,238 | 3,066,137 |
|---|---|---|---|---|---|
| 1,027,266 | 0 | 0 | -366,207 | -19,165 | 641,894 |
|---|---|---|---|---|---|
| 1,774,640 | 0 | 0 | -261,589 | -670,236 | 842,815 |
|---|---|---|---|---|---|
| 76,947 | 0 | -4,905 | -191 | -4,561 | 67,290 |
|---|---|---|---|---|---|
| 13,910,147 | 0 | 0 | -23,912 | -191,347 | 13,694,888 |
|---|---|---|---|---|---|
| 542,669,270 | 270,798 | -1,871,989 | -18,374,782 | -31,431,285 | 491,262,012 |
|---|---|---|---|---|---|
| 111,517,084 | 0 | -736,112 | 0 | -239,544 | 110,541,428 |
|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 56,627,021 | 0 | 0 | 0 | 0 | 56,627,021 |
|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 4,656,031 | 0 | 0 | 0 | 0 | 4,656,031 |
|---|---|---|---|---|---|
| 78,146 | 0 | 0 | 0 | 0 | 78,146 |
|---|---|---|---|---|---|
| 172,878,282 | 0 | -736,112 | 0 | -239,544 | 171,902,626 |
|---|---|---|---|---|---|
| 715,547,552 | 270,798 | -2,608,101 | -18,374,782 | -31,670,829 | 663,164,638 |
|---|---|---|---|---|---|
Gross claims paid also include gross claims paid from inward reinsurance and equalisation scheme expenses for supplemental health insurance.
| Zavarovalnica Triglav | 2021 Gross claims | Gross claims paid from coinsurance | Coinsurers’ shares | Income from subrogated receivables | Reinsurers' share | Net claims incurred |
|---|---|---|---|---|---|---|
| NON-LIFE INSURANCE | ||||||
| Accident insurance | 12,761,262 | 0 | -42,825 | -5,343 | -547,077 | 12,166,017 |
| Health insurance | 232,435 | 0 | -7,204 | 0 | 0 | 225,231 |
| Land motor vehicle insurance | 77,841,773 | 0 | 0 | -1,625,455 | -5,677,647 | 70,538,671 |
| Railway insurance | 1,427,560 | 0 | 0 | -265,554 | -414 | 1,161,592 |
| Aircraft insurance | 463,425 | 0 | 0 | 0 | -414,388 | 49,037 |
| Marine Insurance | 506,568 | 515 | 0 | 0 | -278,014 | 229,069 |
| Cargo insurance | 1,479,440 | 0 | -220,857 | -94,862 | -133,248 | 1,030,473 |
| Fire and natural forces insurance | 19,908,467 | 240 | -58,208 | -176,322 | -7,255,227 | 12,418,950 |
| Other damage to property insurance | 45,288,870 | 0 | -27,641 | -270,220 | -10,165,725 | 34,825,284 |
| Motor TPL insurance | 65,402,571 | 0 | 0 | -1,401,336 | -6,796,060 | 57,205,175 |
| Aircraft liability insurance | 48,321 | 0 | 0 | 0 | -4,078 | 44,243 |
| Marin e liabili t y insuranc e | 278,905 | 0 | -24,041 | 0 | -4,203 | 250,661 |
|---|---|---|---|---|---|---|
| Gene ral liabi lit y insur ance | 10,930,823 | 525 | -359,310 | -169,996 | -671,299 | 9,730,743 |
| Credi t insurance | 11,232,345 | 0 | 0 | -7,186,442 | -1,264,339 | 2,781,564 |
| Suret y ship insurance | 959,033 | 0 | 0 | -667,259 | -17,219 | 274,555 |
| Misce llaneo us nancial los s insurance | 1,592,237 | 0 | 0 | 0 | -962,342 | 629,895 |
| Leg al exp ense s insurance | 66,610 | 0 | -4,254 | 0 | -433 | 61,923 |
| Travel a ssistance ins urance | 14,189,833 | 0 | 0 | -23,139 | -633,153 | 13,533,541 |
| Total non-life i nsurance | 264,610,478 | 1,280 | -744,340 | -11,885,928 | -34,824,866 | 217,156,624 |
| LIFE INSURANCE | ||||||
| Lif e insurance | 100,677,757 | 0 | -8,369 | 0 | -236,262 | 100,433,126 |
| Wedding insuran ce or bir t h insurance | 0 | 0 | 0 | 0 | 0 | 0 |
| Unit-linked life insuran ce | 51,038,868 | 0 | 0 | 0 | -5,125 | 51,033,743 |
| Tontines | 0 | 0 | 0 | 0 | 0 | 0 |
| Capi tal re demp tio n insuranc e | 4,425,926 | 0 | 0 | 0 | 0 | 4,425,926 |
| Lo ss of inc ome due to i llness | 0 | 0 | 0 | 0 | 0 | 0 |
| Total life i nsurance | 156,142,551 | 0 | -8,369 | 0 | -241,387 | 155,892,795 |
| T O TA L | 420,753,029 | 1,280 | -752,709 | -11,885,928 | -35,066,253 | 373,049,419 |
| Type of Insurance | Gross claims | Coinsurers’ shares | Income from subrogated receivables | Reinsurers' share | Net claims incurred | ||
|---|---|---|---|---|---|---|---|
| Accident insurance | 11,267,844 | 0 | -47,119 | -8,628 | 10,902,420 | ||
| Health insurance | 425,255 | 0 | -7,392 | 0 | 417,863 | ||
| Land motor vehicle insurance | 79,748,505 | 0 | 0 | -2,200,346 | -3,847,129 | 73,701,030 | |
| Railway insurance | 682,153 | 0 | 0 | -69,689 | 0 | 612,464 | |
| Aircraft insurance | 83,613 | 0 | 0 | 0 | -2,232 | 81,381 | |
| Marine Insurance | 240,445 | -222,792 | 0 | 0 | -4,678 | 12,975 | |
| Cargo insurance | 1,662,070 | 0 | -263,982 | -167,069 | -219,674 | 1,011,345 | |
| Fire and natural forces insurance | 21,269,591 | 415 | -126,254 | -672,477 | -3,189,052 | 17,282,223 | |
| Other damage to property insurance | 47,415,587 | 0 | -32,158 | -315,089 | -10,219,661 | 36,848,679 | |
| Motor TPL insurance | 65,884,921 | 0 | 0 | -1,640,304 | -4,620,762 | 59,623,855 | |
| Aircraft liability insurance | 70,596 | 0 | 0 | 0 | -22,721 | 47,875 |
| Marin e liabili t y insuranc e | 333,012 | 0 | -134,064 | -20 | -546 | 198,382 |
|---|---|---|---|---|---|---|
| Gene ral liabi lit y insur ance | 16,334,883 | 9,013 | -254,778 | -200,165 | -5,133,259 | 10,755,694 |
| Credi t insurance | 13,685,542 | 0 | 0 | -8,976,231 | -2,021,059 | 2,688,252 |
| Suret y ship insurance | 525,975 | 0 | 0 | -364,908 | 17,487 | 178,554 |
| Misce llaneo us nancial los s insurance | 994,852 | 0 | 0 | -261,589 | -444,954 | 288,309 |
| Leg al exp enses insurance | 76,844 | 0 | -4,905 | -191 | -4,069 | 67,679 |
| Travel assistance insurance | 12,449,520 | 0 | 0 | -23,330 | -554,217 | 11,871,973 |
| Total non-life insurance | 273,151,208 | -213,364 | -870,652 | -14,900,037 | -30,576,201 | 226,590,954 |
| LIFE INSURANCE | ||||||
| Lif e insurance | 96,431,880 | 0 | -3,704 | 0 | -238,284 | 96,189,892 |
| Wedding insurance or birth insurance | 0 | 0 | 0 | 0 | 0 | 0 |
| Unit-linked life insurance | 49,152,423 | 0 | 0 | 0 | -248 | 49,152,175 |
| Tontines | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital redemption insurance | 4,656,031 | 0 | 0 | 0 | 0 | 4,656,031 |
| Loss of income due to illness | 0 | 0 | 0 | 0 | 0 | 0 |
| Total life insurance | 150,240,334 | 0 | -3,704 | 0 | -238,532 | 149,998,098 |
| TOTAL | 423,391,542 | -213,364 | -874,356 | -14,900,037 | -30,814,733 | 376,589,052 |
in EUR
| Triglav Group | Zavarovalnica Triglav | |||
| 2021 | 2020 | 2021 | 2020 | |
| Reinsurance premiums | -213,268,553 | -154,485,509 | -187,969,749 | -137,934,206 |
| Changes in reinsurers’ share of unearned premiums | 15,524,365 | 4,631,215 | 5,954,686 | 4,279,206 |
| Reinsurers’ share of claims | 41,907,703 | 31,670,829 | 35,066,250 | 30,814,733 |
| Changes in claims provisions for reinsurers’ shares | 26,096,873 | 17,398,877 | 24,219,833 | 3,190,962 |
| Net result from reinsurance operations | -129,739,612 | -100,784,588 | -122,728,980 | -99,649,305 |
| Reinsurance commission | 38,817,937 | 30,584,803 | 33,189,769 | 26,633,336 |
| GROSS REINSURANCE RESULT | -90,921,675 | -70,199,785 | -89,539,211 | -73,015,969 |
in EUR
| Triglav Group | Zavarovalnica Triglav | ||||
| 2021 | 2020 | 2021 | 2020 | ||
| Settled bonuses and discounts | 11,584,788 | 13,057,497 | 10,603,774 | 11,257,539 | |
| Changes in gross provisions for bonuses and discounts | -180,647 | 8,292,779 | -113,038 | 4,771,959 | |
| TOTAL EXPENSES FOR BONUSES AND DISCOUNTS | 11,404,141 | 21,350,276 | 10,490,736 | 16,029,498 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Acquisition costs | 184,911,170 | 163,528,966 | 124,268,560 | 113,568,435 |
| Other operating costs | 81,946,738 | 77,383,769 | 46,066,306 | 42,336,182 |
| Claim handling costs* | 28,586,329 | 26,966,051 | 21,120,474 | 20,290,917 |
| Costs of asset management** | 4,398,213 | 4,469,706 | 3,592,739 | 3,755,314 |
| Operating expenses from non-insurance operations*** | 33,548,996 | 34,397,927 | 0 | 0 |
| TOTAL | 333,391,446 | 306,746,419 | 195,048,079 | 179,950,848 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Change in other insurance technical provisions | -2,113,408 | 62,636,591 | -13,989,227 | 13,449,956 |
| – changes in gross provisions for cancellations | -30,917 | 1,602,164 | 25,616 | -42,822 |
| – changes in gross provisions for unexpired risks | 7,877,024 | 16,740,058 | -186,878 | -356,632 |
| – changes in gross provisions for other catastrophic risks | 49,367 | 0 | 0 | 0 |
| – changes in gross provisions for life insurance | -10,190,070 | 43,781,010 | -14,009,153 | 13,336,051 |
| – changes in gross provisions for bonuses from with-profits life insurance | 181,188 | 513,359 | 181,188 | 513,359 |
| Change in gross provisions for unit-linked insurance contracts | 112,661,349 | 25,492,453 | 91,860,583 | 13,270,367 |
| TOTAL CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS | 110,547,941 | 88,129,043 | 77,871,356 | 26,720,323 |
** Asset management costs are disclosed in the financial statements as part of expenses from investments.
| in EUR | Triglav Group | 2021 | Non-life insurance | Life insurance | Health insurance |
|---|---|---|---|---|---|
| Total costs of insurance |
| TO TA L | 2020 | Non-life insurance | Life insurance | Health insurance |
|---|---|---|---|---|
| Acquisition costs | 48,358,908 | 13,692,956 | 984,955 | 63,036,819 |
| Cost of goods sold | 0 | 0 | 0 | 130,008 |
| Depreciation of operating assets | 14,726,165 | 3,271,048 | 931,743 | 18,928,956 |
| Labour costs | 120,194,355 | 16,592,516 | 6,732,156 | 143,519,027 |
| Wages and salaries | 83,158,246 | 10,029,319 | 5,141,964 | 98,329,529 |
| Social security and pension insurance costs | 18,956,283 | 3,199,344 | 858,629 | 23,014,256 |
| Other labour costs | 18,079,826 | 3,363,853 | 731,563 | 22,175,242 |
| Costs of services provided by natural persons other than SPs, including related taxes | 1,244,112 | 95,630 | 195,952 | 1,535,694 |
| Other operating costs | 54,323,648 | 11,524,910 | 6,973,396 | 72,821,954 |
| Costs of entertainment, advertising, trade shows | 15,473,518 | 2,658,404 | 1,021,141 | 19,153,063 |
| Costs of material and energy | 4,980,416 | 970,375 | 267,730 | 6,218,521 |
| Maintenance costs | 9,220,834 | 2,008,037 | 13,909,254 | |
| Reimbursement of labour-related costs | 2,509,044 | 399,909 | 50,008 | 2,958,961 |
| Costs of intellectual and personal services | 3,678,377 | 948,568 | 484,086 | 5,111,031 |
| Membership fees and charges | 2,187,915 | 356,050 | 142,550 | 2,686,515 |
| Costs of services - transport and communications | 3,171,740 | 952,785 | 1,256,779 | 5,381,304 |
| Costs for insurance premiums | 679,107 | 43,371 | 91,675 | |
| Payment transaction costs and banking services | 1,211,630 | 414,022 | 250,149 | 1,875,801 |
| Rents | 4,172,267 | 769,422 | 7,528 | |
| Costs of professional training services | 858,411 | 210,383 | 111,124 | 1,179,918 |
| Other costs of services | 6,180,389 | 1,793,584 | 610,243 | |
| TOTAL OPERATING EXPENSES | 238,847,188 | 45,177,060 | 15,818,202 | 299,842,450 |
| TO TA L | 2019 | Non-life insurance | Life insurance | Health insurance |
|---|---|---|---|---|
| Acquisition costs | 38,319,942 | 10,907,545 | 1,798,039 | 51,025,526 |
| Cost of goods sold | 0 | 0 | 0 | 11,179 |
| Depreciation of operating assets | 14,243,202 | 2,711,218 | 874,375 | 17,828,795 |
| Labour costs | 115,594,332 | 20,376,522 | 141,698,921 | |
| Wages and salaries | 80,992,241 | 14,332,568 | 4,334,405 | |
| Social security and pension insurance costs | 17,898,066 | 2,958,614 | 722,094 | 21,578,774 |
| Other labour costs | 16,704,025 | 3,085,340 | 671,568 | 20,460,933 |
| Costs of services provided by natural persons other than SPs, including related taxes | 952,434 | 82,047 | 174,288 | 1,208,769 |
| Other operating costs | 48,679,515 | 5,682,633 | 6,224,333 | 60,586,481 |
| Costs of entertainment, advertising, trade shows | 13,198,936 | 331,830 | 805,092 | 14,335,858 |
| Costs of material and energy | 5,330,197 | 522,923 | 458,225 | 6,311,345 |
| Maintenance costs | 7,865,885 | 1,431,081 | 11,772,232 | |
| Reimbursement of labour-related costs | 2,275,896 | 83,910 | 51,619 | 2,411,425 |
| Costs of intellectual and personal services | 2,975,299 | 706,620 | 543,555 | 4,225,474 |
| Membership fees and charges | 1,981,163 | 325,732 | 118,160 | 2,425,055 |
| Costs of services - transport and communications | 3,222,317 | 294,875 | 1,070,552 | 4,587,744 |
| Costs for insurance premiums | 766,039 | 64,142 | 2,335 | |
| Payment transaction costs and banking services | 1,142,426 | 244,725 | 284,354 | 1,671,505 |
| Rents | 3,505,396 | 383,959 | 8,036 | |
| Costs of professional training services | 687,076 | 144,857 | 79,752 | 911,685 |
| Other costs of services | 5,728,885 | 1,147,979 | 327,387 | |
| TOTAL OPERATING EXPENSES | 217,789,425 | 39,759,965 | 14,799,102 | 272,348,492 |
| in EUR Zavarovalnica Triglav |
2021 Non-life insurance |
2021 Life insurance |
2021 TOTAL |
2020 Non-life insurance |
2020 Life insurance |
2020 TOTAL |
|---|---|---|---|---|---|---|
| Acquisition costs | 24,425,956 | 9,949,186 | 34,375,142 | 19,994,366 | 8,556,361 | 28,550,727 |
| Depreciation of operating assets | 10,403,546 | 2,769,727 | 13,173,273 | 9,853,276 | 2,291,994 | 12,145,270 |
| Labour costs | 89,743,630 | 16,863,839 | 106,607,469 | 85,276,081 | 16,037,554 | 101,313,635 |
| Wages and salaries | 63,300,286 | 11,908,074 | 75,208,360 | 60,851,633 | 11,482,384 | 72,334,017 |
| Social security and pension insurance costs | 10,704,876 | 2,074,123 | 12,778,999 | 10,079,291 | 1,921,461 | 12,000,752 |
| Other labour costs | 15,738,468 | 2,881,642 | 18,620,110 | 14,345,157 | 2,633,709 | 16,978,866 |
| Costs of services provided by natural persons other than SPs, including related taxes | 272,979 | 36,776 | 309,755 | 251,240 | 38,729 | 289,969 |
| Other operating costs | 31,311,263 | 9,271,177 | 40,582,440 | 29,707,071 | 7,944,175 | 37,651,247 |
| Costs of entertainment, advertising, trade shows | 6,341,580 | 2,306,272 | 8,647,852 | 5,972,357 | 1,635,219 | 7,607,576 |
| Costs of material and energy | 2,685,840 | 757,417 | 3,443,257 | 3,075,760 | 706,784 | 3,782,544 |
| Maintenance costs | 6,832,700 | 1,866,350 | 8,699,050 | 6,978,768 | 1,844,267 | 8,823,035 |
| Reimbursement of labour-related costs | 2,113,331 | 313,405 | 2,426,736 | 1,929,367 | 246,108 | 2,175,475 |
| Costs of intellectual and personal services | 2,127,300 | 627,038 | 2,754,338 | 1,487,234 | 584,790 | 2,072,024 |
| Membership fees and charges | 1,195,811 | 261,803 | 1,457,614 | 1,082,657 | 298,011 | 1,380,668 |
| Costs of services - transport and communications | 2,074,106 | 855,881 | 2,929,987 | 2,145,947 | 832,750 | 2,978,697 |
| Costs for insurance premiums | 286,638 | 18,505 | 305,143 | 353,686 | 25,631 | 379,318 |
| Payment transaction costs and banking services | 788,435 | 346,719 | 1,135,154 | 775,856 | 443,128 | 1,218,984 |
|---|---|---|---|---|---|---|
| Rents | 2,985,344 | 703,289 | 3,688,633 | 2,485,320 | 539,378 | 3,024,699 | |
|---|---|---|---|---|---|---|---|
| Costs of professional training services | 722,233 | 173,495 | 895,728 | 603,519 | 161,427 | 764,946 | |
|---|---|---|---|---|---|---|---|
| Other costs of services | 3,157,945 | 1,041,004 | 4,198,949 | 2,816,600 | 626,681 | 3,443,281 | |
|---|---|---|---|---|---|---|---|
| TOTAL OPERATING EXPENSES | 156,157,374 | 38,890,705 | 195,048,079 | 145,082,034 | 34,868,813 | 179,950,848 | |
|---|---|---|---|---|---|---|---|
In addition to costs of salaries, the Company set aside provisions for employee bonuses based on performance results in 2021 in the amount of EUR 13,493,729 (2020: EUR 10,931,618) under other expenses.
Total costs of salaries at Zavarovalnica Triglav in 2021 amounted to EUR 88,702,089 (2020: EUR 83,265,635).
In addition to employees’ salaries, contributions charged to the employer are taken into account when creating provisions for employee bonuses based on performance results. Total provisions created for 2021 amounted to EUR 15,666,219 (2020: EUR 12,691,608).
| Cost of contract acquisition | Claim handling costs | Costs of asset management | Other operating expenses | Costs of non-insurance operations | TOTAL |
|---|---|---|---|---|---|
| Acquisition costs | 63,036,819 | 0 | 0 | 0 | 63,036,819 |
| Cost of goods sold | 0 | 0 | 0 | 130,008 | 130,008 |
| Depreciation of operating assets | 9,357,628 | 2,226,555 | 409,252 | 21,507,397 | |
| Labour costs | 74,311,229 | 20,621,175 | 45,699,860 | 159,122,030 | |
| Wages and salaries | 51,668,280 | 14,066,086 | 2,069,015 | 109,277,753 | |
| Social security and pension insurance costs | 11,656,992 | 3,215,161 | 414,668 | 7,727,435 | 25,888,957 |
| Other labour costs | 10,985,957 | 3,339,928 | 7,446,277 | 23,955,320 | |
| Costs of services provided by natural persons other than SPs, including related taxes | 675,560 | 366,678 | 3,827 | 489,630 | 1,535,695 |
| Other operating costs | 37,529,934 | 5,371,921 | 1,098,371 | 88,059,497 | |
| Costs of entertainment, advertising, trade shows | 17,450,633 | 33,977 | 28,190 | 1,640,263 | 20,684,954 |
| Costs of material and energy | 3,537,486 | 814,731 | 71,368 | 7,851,193 | |
| Maintenance costs | 3,757,900 | 1,071,554 | 8,779,845 | 15,035,337 | |
| Reimbursement of labour-related costs | 2,437,712 | 115,755 | 31,395 | 374,099 | 3,455,062 |
| Costs of intellectual and personal services | 855,275 | 479,533 | 167,671 | 3,608,552 | 5,973,354 |
| Membership fees and charges | 1,215,606 | 165,946 | 18,144 | 3,479,878 | |
| Costs of services - transport and communications | 2,813,712 | 572,972 | 58,365 | 1,936,255 | 5,507,141 |
| Costs for insurance premiums | 282,178 | 61,115 | 7,448 | 852,688 | |
| Payment transaction costs and banking services | 484,061 | 2,065 | 93,617 | 1,296,058 | 6,797,319 |
| Rents | 1,524,895 | 482,984 | 38,965 | 5,639,389 | |
| Costs of professional training services | 456,542 | 120,738 | 118,511 | 484,127 | 1,303,014 |
| Other costs of services | 2,713,934 | 1,450,551 | 164,742 | 11,480,169 | |
| TOTAL OPERATING EXPENSES | 184,911,170 | 28,586,329 | 4,398,213 | 333,391,446 |
| Cost of contract acquisition | Claim handling costs | Costs of asset management | Other operating expenses | Costs of non-insurance operations | TOTAL |
|---|---|---|---|---|---|
| Acquisition costs | 51,025,526 | 0 | 0 | 0 | 51,025,526 |
| Cost of goods sold | 0 | 0 | 0 | 11,179 | 11,179 |
| Depreciation of operating assets | 8,601,074 | 2,126,914 | 344,758 | 21,266,105 | |
| Labour costs | 74,524,632 | 19,586,339 | 44,664,262 | 156,715,813 | |
| Wages and salaries | 53,707,688 | 13,592,289 | 2,145,447 | 110,229,227 | |
| Social security and pension insurance costs | 10,991,819 | 3,043,413 | 417,814 | 7,125,728 | 24,343,571 |
| Other labour costs | 9,825,125 | 2,950,637 | 360,427 | 22,143,015 | |
| Costs of services provided by natural persons other than SPs, including related taxes | 390,142 | 376,434 | 10,095 | 432,098 | 1,208,769 |
| Other operating costs | 28,987,592 | 4,876,364 | 1,191,165 | 76,519,027 | |
| Costs of entertainment, advertising, trade shows | 11,977,021 | 42,029 | 21,221 | 2,295,587 | 15,551,862 |
| Costs of material and energy | 3,229,120 | 908,908 | 73,927 | 7,918,210 | |
| Maintenance costs | 3,387,535 | 971,128 | 7,117,556 | 13,005,261 | |
| Reimbursement of labour-related costs | 2,063,867 | 80,429 | 28,512 | 238,617 | 2,977,963 |
| Costs of intellectual and personal services | 765,710 | 445,557 | 226,501 | 2,787,706 | 4,997,371 |
| Membership fees and charges | 688,597 | 168,841 | 48,108 | 3,111,003 | |
| Costs of services - transport and communications | 2,202,526 | 487,817 | 58,273 | 1,839,128 | 4,706,853 |
| Costs for insurance premiums | 304,939 | 76,247 | 13,901 | 862,630 | |
| Payment transaction costs and banking services | 253,351 | 5,860 | 134,380 | 1,277,914 | 5,665,815 |
| Rents | 1,529,852 | 552,573 | 43,547 | 4,591,845 | |
| Costs of professional training services | 343,119 | 81,741 | 82,443 | 404,382 | 992,826 |
| Other costs of services | 2,241,955 | 1,055,234 | 164,339 | 12,137,388 | |
| TOTAL OPERATING EXPENSES | 163,528,966 | 26,966,051 | 4,469,706 | 306,746,419 |
| Zavarovalnica Triglav | 2021 | Cost of contract acquisition | Claim handling costs | Costs of asset management | Other operating expenses | TOTAL |
|---|---|---|---|---|---|---|
| Acquisition costs | 34,375,142 | 0 | 0 | 0 | 34,375,142 | |
| Depreciation of operating assets | 7,631,707 | 1,868,843 | 325,483 | 3,347,240 | 13,173,273 |
| Labour costs | 60,760,502 | 15,886,968 | 2,410,361 | 27,549,638 | 106,607,469 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Wages and salaries | 43,726,323 | 11,012,037 | 1,765,812 | 18,704,189 | 75,208,360 | ||||
| Social security and pension insurance costs | 7,375,834 | 1,863,978 | 304,483 | 3,234,705 | 12,778,999 | ||||
| Other labour costs | 9,658,345 | 3,010,954 | 340,067 | 5,610,745 | 18,620,111 | ||||
| Costs of services provided by natural persons other than SPs, including related taxes | 25,294 | 213,541 | 1,495 | 69,425 | 309,755 | ||||
| Other operating costs | 21,475,915 | 3,151,122 | 855,399 | 15,100,004 | 40,582,440 | ||||
| Costs of entertainment, advertising, trade shows | 8,388,109 | 24,103 | 19,986 | 215,654 | 8,647,852 | ||||
| Costs of material and energy | 1,918,228 | 618,348 | 55,191 | 851,489 | 3,443,257 | ||||
| Maintenance costs | 2,812,683 | 845,921 | 275,369 | 4,765,076 | 8,699,049 | ||||
| Reimbursement of labour-related costs | 2,169,023 | 66,670 | 24,504 | 166,540 | 2,426,736 | ||||
| Costs of intellectual and personal services | 658,428 | 79,107 | 150,657 | 1,866,146 | 2,754,338 | ||||
| Membership fees and charges | 559,538 | 133,389 | 14,177 | 750,511 | 1,457,614 | ||||
| Costs of services - transport and communications | 1,872,035 | 465,125 | 49,865 | 542,962 | 2,929,987 | ||||
| Costs for insurance premiums | 56,255 | 22,958 | 1,943 | 223,986 | 305,142 | ||||
| Payment transaction costs and banking services | 366,178 | 553 | 75,116 | 693,307 | 1,135,154 | ||||
| Rents | 736,399 | 291,058 | 28,466 | 2,632,709 | 3,688,633 | ||||
| Costs of professional training services | 361,503 | 104,083 | 117,498 | 312,644 | 895,728 | ||||
| Other costs of services | 1,577,537 | 499,806 | 42,627 | 2,078,980 | 4,198,949 | ||||
| TOTAL OPERATING EXPENSES | 124,268,560 | 21,120,474 | 3,592,739 | 46,066,306 | 195,048,079 |
| Zavarovalnica Triglav | 2020 | Cost of contract acquisition | Claim handling costs | Costs of asset management | Other operating expenses | TOTAL | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Acquisition costs | 28,550,727 | 0 | 0 | 0 | 28,550,727 | |||||
| Depreciation of operating assets | 7,031,753 | 1,767,164 | 283,711 | 3,062,642 | 12,145,270 | |||||
| Labour costs | 57,511,190 | 15,240,239 | 2,473,568 | 26,088,638 | 101,313,635 | |||||
| Wages and salaries | 41,937,127 | 10,760,110 | 1,837,744 | 17,799,035 | 72,334,017 | |||||
| Social security and pension insurance costs | 6,969,474 | 1,786,287 | 312,845 | 2,932,147 | 12,000,752 | |||||
| Other labour costs | 8,604,589 | 2,693,842 | 322,979 | 5,357,456 | 16,978,866 | |||||
| Costs of services provided by natural persons other than SPs, including related taxes | 20,379 | 195,592 | 6,230 | 67,769 | 289,969 | |||||
| Other operating costs | 20,454,386 | 3,087,923 | 991,805 | 13,117,133 | 37,651,247 | |||||
| Costs of entertainment, advertising, trade shows | 7,462,609 | 17,480 | 14,864 | 112,624 | 7,607,576 | |||||
| Costs of material and energy | 2,049,043 | 693,558 | 59,288 | 980,656 | 3,782,544 | |||||
| Maintenance costs | 2,969,546 | 774,217 | 277,386 | 4,801,886 | 8,823,035 | |||||
| Reimbursement of labour-related costs | 2,028,422 | 41,047 | 21,925 | 84,081 | 2,175,475 | |||||
| Costs of intellectual and personal services | 458,994 | 122,632 | 209,653 | 1,280,746 | 2,072,024 | |||||
| Membership fees and charges | 586,542 | 147,847 | 45,823 | 600,456 | 1,380,668 | |||||
| Costs of services - transport and communications | 1,910,654 | 376,242 | 50,538 | 641,263 | 2,978,697 | |||||
| Costs for insurance premiums | 80,395 | 33,535 | 3,009 | 262,379 | 379,318 | |||||
| Payment transaction costs and banking services | 392,786 | 621 | 121,410 | 704,167 | 1,218,984 | |||||
| Rents | 1,022,141 | 348,547 | 34,263 | 1,619,748 | 3,024,699 | |||||
| Costs of professional training services | 280,487 | 74,143 | 79,188 | 331,127 | 764,946 | |||||
| Other costs of services | 1,212,768 | 458,055 | 74,458 | 1,698,000 | 3,443,281 | |||||
| TOTAL OPERATING EXPENSES | 113,568,435 | 20,290,917 | 3,755,314 | 42,336,182 | 179,950,848 |
| in EUR | Triglav Group | Zavarovalnica Triglav | ||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||
| Fee and commission expenses | 35,152,667 | 30,320,683 | 14,437,986 | 11,318,836 | ||
| Expenses from impairment of insurance receivables and write-offs | 2,022,500 | 5,221,362 | 1,284,515 | 3,298,341 | ||
| Fire tax | 5,013,123 | 4,741,187 | 4,600,869 | 4,400,360 | ||
| Expenses of preventive activity | 3,527,029 | 3,374,643 | 2,891,761 | 2,773,516 | ||
| Supervisory authority fees | 2,014,826 | 1,786,795 | 1,058,180 | 907,241 | ||
| Other net insurance expenses | 4,185,795 | 6,078,717 | 1,025,186 | 1,609,743 | ||
| OTHER EXPENSES FROM INSURANCE OPERATIONS | 51,915,940 | 51,523,387 | 25,298,497 | 24,308,038 |
| in EUR | Triglav Group | Zavarovalnica Triglav | |||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||||
| Financial expenses | 2,729,286 | 2,937,501 | 2,277,892 | 2,578,946 | |||
| Interest expenses for bonds issued | 2,187,500 | 2,351,604 | 2,187,500 | 2,460,276 | |||
| Lease interest expenses | 489,303 | 512,481 | 65,714 | 65,395 | |||
| Other financing expenses | 52,483 | 73,416 | 24,678 | 53,275 | |||
| Other expenses | 55,650,367 | 54,371,221 | 20,207,745 | 17,780,733 |
| 32,844,278 | 32,184,037 | 0 | 0 |
|---|---|---|---|
| 17,862,055 | 14,699,072 | 15,666,219 | 12,691,608 |
|---|---|---|---|
| 4,340 | 697,313 | 0 | 653,340 |
|---|---|---|---|
| 2,162,149 | 2,312,787 | 2,725,512 | 2,829,442 |
|---|---|---|---|
| 1,335,886 | 1,400,196 | 967,250 | 965,361 |
|---|---|---|---|
| 44,305 | 43,190 | 44,305 | 43,190 |
|---|---|---|---|
| 28,825 | 207,679 | 0 | 1,685 |
|---|---|---|---|
| 33,829 | 117,257 | 18,323 | 39,272 |
|---|---|---|---|
| 39,298 | 23,488 | 4,549 | 16,116 |
|---|---|---|---|
| 467,828 | 70,809 | 467,828 | 70,809 |
|---|---|---|---|
| 0 | 314,377 | 0 | 132,467 |
|---|---|---|---|
| 0 | 783,164 | 0 | 0 |
|---|---|---|---|
| 827,574 | 1,517,852 | 313,759 | 337,444 |
|---|---|---|---|
| 58,379,653 | 57,308,722 | 22,485,637 | 20,359,679 |
|---|---|---|---|
| Triglav Group | Before tax | Tax | After tax | Before tax | Tax | After tax |
|---|---|---|---|---|---|---|
| Profit from increase in fair value of available for sale financial assets | -46,148,956 | 11,107,513 | -35,041,443 | 27,824,231 | -8,163,206 | 19,661,025 |
| Liabilities from insurance contracts with a discretionary participating feature (shadow accounting) | 28,770,746 | -5,466,442 | 23,304,304 | -17,577,840 | 3,339,790 | -14,238,050 |
| Actuarial gains/losses | 129,024 | 0 | 129,024 | -281,989 | 0 | -281,989 |
| Translation differences | 170,440 | 0 | 170,440 | -556,570 | 0 | -556,570 |
| TOTAL OTHER COMPREHENSIVE INCOME | -17,078,746 | 5,641,071 | -11,437,675 | 9,407,832 | -4,823,416 | 4,584,416 |
| Zavarovalnica Triglav | Before tax | Tax | After tax | Before tax | Tax | After tax |
|---|---|---|---|---|---|---|
| Profit from increase in fair value of available-for-sale financial assets | -38,145,921 | 11,129,871 | -27,016,051 | 27,765,868 | -7,719,483 | 20,046,385 |
| Liabilities from insurance contracts with a discretionary participating feature (shadow accounting) | 28,770,746 | -5,466,442 | 23,304,304 | -17,577,840 | 3,339,790 | -14,238,050 |
| Actuarial gains/losses | 164,710 | 0 | 164,710 | -283,076 | 0 | -283,076 |
| TOTAL OTHER COMPREHENSIVE INCOME | -9,210,465 | 5,663,429 | -3,547,036 | 9,904,952 | -4,379,693 | 5,525,259 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Current tax expense | 19,038,574 | 18,092,759 | 11,928,064 | 13,627,538 |
| Deferred tax expense | 640,578 | -854,175 | 345,000 | -555,211 |
| TOTAL TAX EXPENSE IN THE INCOME STATEMENT | 19,679,152 | 17,238,584 | 12,273,064 | 13,072,327 |
Business Report
Risk Management
Accounting Report
Notes to the income statement
308
The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2021
in EUR
| Triglav Group | Zavarovalnica Triglav | 2021 | 2020 |
|---|---|---|---|
| Accounting profit | 132,644,845 | 90,903,282 | 85,688,613 | 71,069,966 | |||
|---|---|---|---|---|---|---|---|
| Income tax rate - tax rate average of several countries | 17.82% | 19.88% | 19.00% | 19.00% | |||
| Accounting profit multiplied by tax rate | 23,639,583 | 18,068,868 | 16,280,836 | 13,503,293 | |||
| Tax effect of income deductible for tax purposes | -3,924,446 | -1,718,025 | -3,486,988 | -1,251,616 | |||
| Tax effect of income added for tax purposes | -9,064 | 225,864 | 10,614 | 0 | |||
| Tax effect on the reduction in expenses not deductible for tax purposes | 3,949,419 | 4,083,688 | 1,276,901 | 2,266,047 | |||
| Tax relief | -4,616,918 | -3,086,668 | -2,245,632 | -1,468,155 | |||
| Previously unrecognized deferred taxes | 0 | -365,535 | 0 | 0 | |||
| Other tax effects | 0 | 30,392 | 92,332 | 22,758 | |||
| TOTAL TAX EXPENSE | 19,038,574 | 17,238,584 | 11,928,063 | 13,072,327 | |||
| Effective tax rate | 14.35% | 18.96% | 13.92% | 18.39% |
In accordance with the Corporate Income Tax Act (ZDD PO -2), the applicable tax rate in Slovenia was 19% in 2021, 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. For the applied tax rates see Section 2.1.4.
The Company has no unused tax loss; at the Group level it amounted to EUR 27.5 million as at 31 December 2021 (compared to EUR 28.6 million as at 31 December 2020).
In the data of the Triglav Group, the average of all countries was taken into account in the corporate income tax rate.
The tables below show fair values of assets and liabilities classified according to the fair value hierarchy.
in EUR
| Triglav Group | As at 31 December 2021 | Carrying amount | Level 1 | Level 2 | Level 3 | Total | |
| Assets - measured at fair value | Equity securities | 332,988,233 | 240,531,858 | 0 | 92,456,375 | 332,988,233 | |
| Debt securities | 2,349,026,330 | 479,980,327 | 1,869,037,119 | 8,884 | 2,349,026,330 | ||
| Derivative financial instruments | 20,317 | 0 | 20,317 | 0 | 20,317 | ||
| Unit-linked insurance assets | 619,617,488 | 598,678,211 | 20,635,943 | 303,334 | 619,617,488 | ||
| Assets - fair value disclosed | Land and buildings for insurance activities | 95,577,467 | 0 | 0 | 105,162,133 | 105,162,133 |
| Land and buildings for investment activities | 75,110,973 | 0 | 94,510,057 | 94,510,057 | ||
|---|---|---|---|---|---|---|
| Debt securities (HTM) | 157,560,733 | 0 | 191,789,261 | 0 | 191,789,261 | |
| Deposits with banks | 70,472,826 | 0 | 69,641,171 | 0 | 69,641,171 | |
| Loans given | 8,299,712 | 0 | 0 | 8,304,283 | 8,304,283 | |
| Debt securities (L\&R) | 5,991,639 | 0 | 5,952,000 | 0 | 5,952,000 | |
| Liabilities - fair value disclosed | Subordinated bonds | 49,471,831 | 0 | 53,749,521 | 0 | 53,749,521 |
| Carrying amount | Level 1 | Level 2 | Level 3 | Total | ||
|---|---|---|---|---|---|---|
| Assets - measured at fair value | Equity securities | 223,163,402 | 151,243,025 | 0 | 71,920,377 | 223,163,402 |
| Debt securities | 2,403,308,090 | 1,506,407,355 | 896,900,735 | 0 | 2,403,308,090 | |
| Derivative financial instruments | 113,301 | 0 | 113,301 | 0 | 113,301 | |
| Unit-linked insurance assets | 501,808,980 | 449,327,642 | 52,461,780 | 19,558 | 501,808,980 |
| Land and buildings for insurance activities | 97,614,829 | 0 | 0 | 101,997,495 | 101,997,495 | |
|---|---|---|---|---|---|---|
| Land and buildings for investment activities | 78,977,800 | 0 | 0 | 97,660,730 | 97,660,730 | |
| Debt securities (HTM) | 162,824,686 | 0 | 18,331,006 | 188,553,736 | 0 | 206,884,742 |
| Deposits with banks | 72,474,219 | 0 | 71,987,450 | 0 | 71,987,450 | |
| Loans given | 7,885,008 | 0 | 0 | 7,887,114 | 4,220,386 | |
| Debt securities (L\&R) | 6,401,173 | 0 | 6,364,204 | 0 | 6,364,204 | |
| Liabilities - fair value disclosed | Subordinated bonds | 49,423,693 | 0 | 51,792,521 | 0 | 51,792,521 |
| Assets - measured at fair value | Carrying amount | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|
| Equity securities | 205,590,084 | 120,508,156 | 0 | 85,081,928 | 205,590,084 |
| Debt securities | 1,589,601,822 | 356,825,433 | 1,232,776,388 | 0 | 1,589,601,822 |
| Derivative financial instruments | 20,317 | 0 | 20,317 | 0 | 20,317 |
| Unit-linked insurance assets | 539,417,972 | 530,759,767 | 8,658,205 | 0 | 539,417,972 |
| Investments in associates | 41,693,996 | 0 | 0 | 41,693,996 | 41,693,996 |
| Assets - fair value disclosed | Carrying amount | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|
| Land and buildings for insurance activities | 59,018,066 | 0 | 0 | 66,748,484 | 66,748,484 |
| Land and buildings for investment activities | 43,840,054 | 0 | 0 | 61,386,766 | 61,386,766 |
| Debt securities (HTM) | 140,946,233 | 0 | 173,901,172 | 0 | 173,901,172 |
| Deposits with banks | 19,660,793 | 0 | 19,604,272 | 0 | 19,604,272 |
| Loans given | 6,869,091 | 0 | 6,579,159 | 0 | 6,579,159 |
| Debt securities (L\&R) | 5,991,639 | 0 | 5,952,000 | 0 | 5,952,000 |
| Liabilities - fair value disclosed | Carrying amount | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|
| Subordinated bonds | 49,471,831 | 0 | 53,749,521 | 0 | 53,749,521 |
| Carring amount | Level 1 | Level 2 | Level 3 | Total | |||
|---|---|---|---|---|---|---|---|
| Assets - measured at fair value | |||||||
| Equity securities | 115,552,906 | 49,571,409 | 0 | 65,981,498 | 115,552,906 | ||
| Debt securities | 1,687,062,569 | 1,226,158,197 | 460,904,372 | 0 | 1,687,062,569 | ||
| Derivative financial instruments | 113,301 | 0 | 113,301 | 0 | 113,301 | ||
| Unit-linked insurance assets | 442,292,488 | 397,371,769 | 44,920,719 | 0 | 442,292,488 | ||
| Investments in associates | 31,337,951 | 0 | 0 | 31,337,951 | 31,337,951 | ||
| Assets - fair value disclosed | |||||||
| Land and buildings for insurance activities | 59,195,351 | 0 | 0 | 64,855,528 | 64,855,528 | ||
| Land and buildings for investment activities | 44,451,276 | 0 | 0 | 59,837,722 | 59,837,722 | ||
| Debt securities (HTM) | 143,908,512 | 11,001,264 | 175,082,197 | 186,083,461 | |||
| Deposits with banks | 19,567,302 | 0 | 19,432,104 | 0 | 19,432,104 | ||
| Loans given | 10,982,611 | 0 | 8,109,920 | 0 | 8,109,920 | ||
| Debt securities (L\&R) | 6,401,173 | 0 | 6,364,204 | 0 | 6,364,204 | ||
| Liabilities - fair value disclosed | |||||||
| Subordinated bonds | 49,423,693 | 0 | 51,792,521 | 0 | 51,792,521 |
in EUR
| Triglav Group | Zavarovalnica Triglav | |||
| 2021 | 2020 | 2021 | 2020 | |
| Value as at 1 January | 71,939,935 | 61,061,888 | 97,319,448 | 73,739,170 |
| Purchases | 31,161,252 | 11,361,478 | 33,872,252 | 25,601,495 |
| Disposals | -15,202,211 | -1,361,924 | -15,152,076 | -1,327,017 |
| Revaluation through profit or loss | 483,964 | -505,908 | 400,920 | -1,717,044 |
| Revaluation in other comprehensive income | 5,474,961 | 1,091,073 | 9,725,896 | 1,022,844 |
| Transfers from/to other levels | 1,373,238 | 0 | 609,485 | 0 |
| Acquisition | -700,404 | 299,404 | 0 | 0 |
| Foreign exchange differentials | 1,820 | -6,076 | 0 | 0 |
| Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
| Non-marketable assets (Level 3) | 94,532,555 | 71,939,935 | 85,081,928 | 65,981,498 |
| Estimated value deviation +/- | -23,268,934/13,159,489 | -11,989,589/7,987,555 | -21,420,123/10,090,535 | -11,236,448/7,451,002 |
| Equity investment in associates | 36,031,346 | 28,237,714 | 41,693,996 | 31,337,951 |
| Estimated value deviation +/- | n/a | n/a | -5,414,335/966,967 | -7,785,294/4,184,099 |
The value of financial assets classified into Level 3 increased in 2021 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 in other comprehensive income” item, which has a significant impact on the overall increase in financial assets classified into level 3, is also mainly a result of changes in the value of alternative investment funds.
Sensitivity analysis of financial assets classified in Level 3 is disclosed below. The analysis for Zavarovalnica Triglav includes equity investments in associates. The sensitivity analysis shows how much the fair values of these financial assets 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.
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, ±10% of the change in investment value for alternative investment funds investing in debt securities, and asymmetric –25/+10% of the change in investment value for alternative investment funds investing in equity securities.
| Triglav Group | Zavarovalnica Triglav | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||
| Reclassification from level 1 to level 2 | 755,181,819 | 115,643,909 | 603,687,505 | 84,685,126 | ||||
| Reclassification from level 2 to level 1 | 80,144,184 | 452,418,713 | 50,588,034 | 322,307,603 |
Below is the cash flow statement as required by the Insurance Supervision Agency. Cash flows from operating activities are prepared using the indirect method. Income and expenses are adjusted for the effects of non-monetary transactions (impairments, changes in insurance technical provisions, deferred income and expenses) and for the income and expenses items related to cash flows from investing and financing activities. In addition, changes in receivables and liabilities from operating activities in the period are taken into account when calculating net cash flows from operating activities.
Cash flows from investing and financing activities are disclosed based on actual payments. Cash flows from financing activities include expenses for interest and principal payments for leases.
The consolidated cash flow statement is composed of the sum of the cash flows of all Group companies and then adjusted for intragroup cash flows.
| in EUR | Triglav Group | Zavarovalnica Triglav | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||||||
| A. CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
| a. Income statement items | 144,641,397 | 125,392,511 | 57,377,294 | 43,160,418 | |||||
| Net written premium for the period | 1,187,488,721 | 1,119,644,973 | 606,380,354 | 581,321,664 | |||||
| Investment income (excluding financial income) | 22,539,986 | 18,201,062 | 9,134,442 | 9,606,634 | |||||
| Other operating income (excluding revaluation and provisions reductions) and financial income from operating receivables | 43,258,766 | 34,516,215 | 12,143,285 | 9,946,221 | |||||
| Net claims paid for the period | -713,359,986 | -686,447,305 | -373,056,512 | -376,589,051 | |||||
| Bonuses and discounts paid | -12,072,221 | -12,999,285 | -10,603,774 | -11,257,539 | |||||
| Net operating expenses excluding depreciation costs and change in deferred acquisition costs | -288,529,978 | -257,874,524 | -138,213,385 | -127,492,924 | |||||
| Investment expenses (excluding depreciation and financial expenses) | -8,839,299 | -9,172,145 | -6,371,339 | -6,925,520 | |||||
| Other operating expenses excluding depreciation (other than revaluation and excluding the increase in provisions) | -66,806,018 | -64,388,961 | -26,027,184 | -22,974,043 | |||||
| Corporate income tax and other taxes excluded from operating expenses | -19,038,574 | -16,087,519 | -16,008,593 | -12,475,023 | |||||
| b. Changes in net operating current assets – operating balance sheet items | -7,283,265 | -6,336,992 | -3,345,436 | -4,635,089 | |||||
| Changes in operating receivables from direct insurance operations | -12,709,036 | 8,086,404 | -6,113,550 | 68,733 | |||||
| Changes in receivables from reinsurance operations | 5,742,340 | -16,107,791 | -3,725,245 | -2,577,417 | |||||
| Changes in other receivables from (re)insurance operations | 424,995 | -8,242,089 | -1,550,658 | -2,367,792 | |||||
| Changes in other receivables and assets | -2,679,343 | 1,115,863 | 1,575,807 | -557,237 | |||||
| Changes in deferred tax assets | -107,165 | -772,947 | 0 | 0 | |||||
| Changes in inventories | 365,967 | 60,592 | 454,701 | 24,385 | |||||
| Changes in liabilities from direct insurance operations | 2,551,991 | -4,891,037 | -436,034 | -3,602,591 | |||||
| Changes in liabilities from reinsurance operations | -1,363,326 | 4,569,364 | 4,854,423 | 4,515,110 | |||||
| Changes in other operating liabilities | -9,446,802 | -9,988,588 | 0 | -244,394 | |||||
| Changes in other liabilities (other than unearned premium) | 10,472,491 | 20,185,037 | 1,595,120 | 106,113 | |||||
| Changes in deferred tax liabilities | -542,244 | -351,800 | 0 | 0 | |||||
| c. Net cash from/(used in) operating activities (a + b) | 137,358,132 | 119,055,519 | 54,031,858 | 38,525,329 | |||||
| B. CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
| a. Cash inflows from investing activities | 1,093,015,888 | 1,361,243,567 | 945,312,942 | 1,132,256,197 | |||||
| Cash inflows from interest received from investing activities | 37,412,752 | 43,998,453 | 23,440,425 | 28,815,764 | |||||
| Cash inflows from dividends and profit sharing | 5,653,046 | 5,248,223 | 12,494,301 | 3,801,801 | |||||
| Cash inflows from disposal of intangible assets | 0 | 132,562 | 0 | 12,562 | |||||
| Cash inflows from disposal of plant, property and equipment | 3,515,560 | 3,005,255 | 151,349 | 414,273 | |||||
| Cash inflows from disposal of financial investments | 1,046,434,530 | 1,308,859,074 | 909,226,867 | 1,099,211,797 | |||||
| – Cash inflows from disposal of investments in subsidiaries and other companies | 0 | 0 | 0 | 0 | |||||
| – Other cash inflows from disposal of financial investments | 1,046,434,530 | 1,308,859,074 | 909,226,867 | 1,099,211,797 | |||||
| b. Cash outflows from investing activities | -1,186,871,319 | -1,445,191,950 | -965,578,127 | -1,149,365,270 | |||||
| Cash outflows for acquisition of intangible assets | -7,877,065 | -9,126,252 | -6,931,001 | -7,711,934 | |||||
| Cash outflows for acquisition of property, plant and equipment | -9,507,447 | -13,601,854 | -3,365,839 | -7,310,866 | |||||
| Cash outflows for acquisition of financial investments | -1,169,486,807 | -1,422,463,844 | -955,281,287 | -1,134,342,470 |
| Cash out flows for acquisition of investments in subsidiaries and other companies | -4,465,325 | -14,948,951 | -7,039,617 | -14,900,000 |
|---|---|---|---|---|
| Other cash out flows for acquisition of financial investments | -1,165,021,482 | -1,407,514,893 | -948,241,670 | -1,119,442,470 |
| Net cash from/(used in) investing activities (a + b) | -93,855,431 | -83,948,383 | -20,265,185 | -17,109,073 |
| Cash in flows from financing activities | 0 | 0 | 0 | 0 |
|---|---|---|---|---|
| Cash in flows from paid-in capital | 0 | 0 | 0 | 0 |
| Cash in flows from long-term loans received (issued bond) | 0 | 0 | 0 | 0 |
| Cash in flows from short-term loans received | 0 | 0 | 0 | 0 |
| Cash out flows for financing activities | -43,097,819 | -29,035,063 | -42,157,905 | -25,224,146 |
| Cash out flows for interest paid | -2,458,714 | -3,982,947 | -2,343,302 | -3,513,302 |
| Cash out flows for purchase of treasury shares | 0 | 0 | 0 | 0 |
| Cash out flows for capital repayment | 0 | 0 | 0 | -20,628,000 |
| Cash out flows for payments of long-term financial liabilities | 0 | -21,620,132 | -1,164,850 | -1,082,844 |
| Cash out flows for payments of short-term financial liabilities | -2,030,685 | -3,431,984 | 0 | 0 |
| Cash out flows for dividends and profit sharing | -38,608,420 | 0 | -38,649,752 | 0 |
| Net cash from/(used in) financing activities (a + b) | -43,097,819 | -29,035,063 | -42,157,905 | -25,224,146 |
| Closing balance of cash and cash equivalents | 82,321,630 | 81,899,664 | 13,912,991 | 22,304,222 |
|---|---|---|---|---|
| Net cash flow for the period | 404,882 | 6,072,073 | -8,391,231 | -3,807,890 |
|---|---|---|---|---|
| External acquisition | 0 | 0 | 0 | 0 |
|---|---|---|---|---|
| Exchange rate differences | 17,084 | -42,184 | 0 | 0 |
|---|---|---|---|---|
| Opening balance of cash and cash equivalents | 81,899,664 | 75,869,775 | 22,304,222 | 26,112,112 |
|---|---|---|---|---|
| in EUR | Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| Auditing of the Annual Report | 540,408 | 545,478 | 181,414 | 174,277 | |
| Other assurance services | 9,719 | 1,501 | 0 | 0 | |
| Other non-auditing services | 54,778 | 3,900 | 0 | 0 | |
| TOTAL | 604,905 | 550,879 | 181,414 | 174,277 |
| in EUR | Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| COVID-related government grants | 194,560 | 381,467 | 127,017 | 77,169 | |
| State incentives for the employment of specific categories of workers | 214,417 | 212,831 | 204,921 | 198,242 | |
| Funds obtained through public tenders | 29,797 | 55,473 | 4,807 | 36,773 | |
| Reimbursement of labour costs by the state | 2,259,241 | 2,379,066 | 2,189,942 | 1,774,333 | |
| Other government grants and assistance | 14,272 | - | - | - | |
| TOTAL | 2,712,287 | 3,028,836 | 2,526,687 | 2,086,517 |
rm Deloit te, Revizija d.o.o., Ljublj ana. Said audit rm also carried out the audit in al l Group members.
The amounts spent on the ser v ices of this audit rm are shown in the table below.
The following are government grants rec eived by the Company in the form of:
The grants relate d to assets are re cognised as income and the remain ing grants re duce the costs the y are intended to compensa te.
Related par t y transac tions are disclosed separatel y for the Triglav Group a nd Zav arovalnica T riglav:
Tr ansac tions with subsidi aries and associates and income, exp enses, receiv ables and liabil itie s arisi ng from these transactions are s hown below.
The largest shareholders o f Zavarovalnica T riglav are Zavod za pokojnin sko in invalid sko zavarovanje Slovenije (Pension and Disabilit y Insurance Institute of Slovenia – ZPIZ) and Slovens ki državni hol ding ( Slovenian Sovereign Hol ding – SDH), which hold a 34 .47% and a 28.09% par ticipating interest respe c tively. The only materia l transac tion in 2021 was the dividend payout.
The t wo shareholders receive d dividends in the tot al amount of EUR 2 4 .2 million, of which the ZPIZ receive d EUR 13.3 mi llion and SDH EUR 10.9 mil lion.
The shareholder-related companies are those in which SDH has a majority p ar ticipating interest or dominant inuence. As at 31 December 202 1, there were t wo such companies, with which neither the Company nor the Grouphave signicant transactio ns.
The related par t y ser vices are charged at the same price s as those applying to unrelated par ties. Pricing metho ds includethe ex ternal or interna l comparables method and cost contribution arrangement.
| Stakes and shares | 131,924,683 | 132,337,466 |
|---|---|---|
| Debt securities and loans given to members of the Group | 2,146,807 | 6,610,381 |
| Right of use assets | 888,293 | 827,255 |
| Insurance premium receivables from policyholders | 10,027 | 15,620 |
| Co-insurance receivables | 0 | 0 |
| Re-insurance receivables | 7,002,697 | 6,778,184 |
| Receivables for co-insurer's share in claims | 2,630 | 197 |
| Receivables for reinsurer's share in claims | 6,478,503 | 5,221,704 |
| Other short-term receivables from insurance operations | 228,795 | 82,267 |
| Short-term receivables from financing | 21,531 | 46,152 |
| Other short-term receivables | 752,713 | 730,317 |
| Short-term deferred expenses | 30,732 | 61,969 |
| Liabilities to policyholders | 17,925 | 0 |
|---|---|---|
| Liabilities to agents and brokers | 419,562 | 368,827 |
| Liabilities to insurances for co-insurance premium | 24,248 | 22,377 |
| Liabilities for reinsurance premiums | 10,967,485 | 9,594,905 |
| Liabilities for shares in claims from co-insurance | 0 | 0 |
| Liabilities for shares in claims from re-insurance | 5,909,345 | 4,510,857 |
| Lease liabilities | 915,166 | 851,981 |
| Other short-term liabilities | 174,610 | 153,503 |
| Gross written premium and active reinsurance premium | 31,802,130 | 29,560,612 |
|---|---|---|
| Assumed co-insurance written premium | 0 | 0 |
| Outward re-/co-insurance premium (–) | -81,394,215 | -73,313,592 |
| Net premium income | -49,592,085 | -43,752,980 |
| Re-/co-insurance commission income | 17,710,400 | 15,558,263 |
| Fee and commission income | 4,908,456 | 3,382,602 |
| Other income from insurance operations | 1,440,370 | 1,202,346 |
| Interest income | 177,238 | 294,441 |
| Other insurance income | 1,145,554 | 1,150,055 |
| Income from land and buildings | 707,040 | 687,336 |
| Other income | 573,300 | 473,282 |
| Dividends | 8,000,000 | 0 |
| Other income from financial assets | 2,647 | 8,203 |
| TOTAL INCOME | -14,927,080 | -20,996,452 |
| Gross claims settled | 9,185,312 | 8,242,296 |
| Re-/co-insurers' share in gross claims | -26,491,451 | -22,517,380 |
| Net claims | -17,306,139 | -14,275,084 |
| Expenses for reinsurance premiums | 4,833,477 | 4,575,494 |
| Loss on disposal from financial assets | 0 | 0 |
| Other financial expenses | 20,647 | 12,537 |
| Other expenses | 0 | 0 |
| Interest expenses | 20,549 | 22,561 |
| Depreciation of right-of-use assets | 122,001 | 129,523 |
| TOTAL EXPENSES | -12,309,465 | -9,534,969 |
| Triglav Group | Zavarovalnica Triglav | 31 Dec. 2021 | 31 Dec. 2020 | ||||
|---|---|---|---|---|---|---|---|
| Stakes and shares | 36,031,346 | 28,237,714 | 41,693,997 | 31,337,951 | |||
| Insurance premium receivables from policyholders | 8,857 | 5,096 | 8,693 | 4,932 | |||
| Liabilities to policyholders | 0 | 27 | 0 | 0 | |||
| Liabilities to agents and brokers | 2,250 | 7,319 | 4,446 | 7,176 | |||
| Other short-term liabilities | 1,561 | 312 | 0 | 0 | |||
| Accrued costs and expenses | 450 | 450 | 0 | 0 |
| Gross written premium | 91,048 | 79,433 | 89,085 | 77,115 |
|---|---|---|---|---|
| Income from dividends and stakes | 0 | 0 | 0 | 0 |
| Income from land and buildings | 0 | 0 | 0 | 0 |
| Gains on the sale of securities | 0 | 0 | 0 | 0 |
| TOTAL INCOME | 91,048 | 79,433 | 89,085 | 77,115 |
| Gross claims settled | 31,551 | 2,648 | 31,551 | 2,648 |
| Acquisition costs | 2,256 | 2,829 | 0 | 0 |
| Other operating expenses | 0 | 0 | 0 | 0 |
| TOTAL EXPENSES | 33,807 | 5,477 | 31,551 | 2,648 |
In 2021, the Management Board members received the following remuneration:
| 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 | 197,563 | 53,634 | 251,197 | 81,935 | 67,683 | 10,456 | 78,139 |
| Uroš I van c | 188,487 | 50,953 | 239,440 | 83,244 | 48,741 | 1,078 | 49,819 |
|---|---|---|---|---|---|---|---|
| Tadej Čo roli | 188,487 | 50,953 | 239,440 | 81,796 | 48,706 | 5,461 | 54,167 |
| Barbar a Smolnikar | 187,763 | 47,095 | 234,858 | 79,124 | 48,474 | 5,928 | 54,402 |
| David Benedek | 187,798 | 26,652 | 214,450 | 72,253 | 48,171 | 7,181 | 55,352 |
| Maric a Mako ter | 187,798 | 50,953 | 238,751 | 79,998 | 48,705 | 5,286 | 53,991 |
| Benjam in Jošar**** | 0 | 3,857 | 3,857 | 2,254 | 0 | 0 | 0 |
| T O TA L | 1,137,896 | 284,097 | 1,421,993 | 480,604 | 310,480 | 35,390 | 345,870 |
in EUR
| First and last name | Deferred variable remuneration (bonuses) – gross (1) | Fixed remuneration (salary) – gross and reimbursement (2) | Total liabilities (3=1 +2) |
|---|---|---|---|
| Andr ej Slapar | 60,261 | 16,473 | 76,734 |
| Uroš I van c | 57,248 | 15,625 | 72,873 |
| Tadej Čo roli | 57,248 | 15,631 | 72,879 |
| Barbar a Smolnikar | 57,248 | 15,349 | 72,597 |
| David Benedek | 35,211 | 15,638 | 50,849 |
| Maric a Mako ter | 57,248 | 15,619 | 72,867 |
| T O TA L | 324,464 | 94,335 | 418,799 |
** Insurance premiums include premiums for supplementary pension insurance, accident insurance, liability insurance and other types of insurance.
*** Other benefits include company cars.
**** Benjamin Jošar was Management Board member until 2 November, 2017.
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 2021, Zavarovalnica Triglav had the following liabilities to the Management Board members:
The Company’s receivables from the Management Board members relate exclusively to receivables from salary deductions. The amounts of these are negligibly low.
In 2021, Zavarovalnica Triglav paid EUR 17,317,917 in remuneration to employees under an individual agreement (2020: EUR 14,943,676), of which EUR 15,534,781 in gross salaries (2020: EUR 13,710,082) and EUR 1,783,136 in other remuneration (2020: EUR 1,233,594).
The amounts do not include meal and travel allowances.
| 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 | 26,125 | 2,981 | 29,106 | 21,169 | 278 | 202 |
| Branko Bračko | 12,028 | 1,265 | 13,293 | 9,668 | 555 | 403 |
| Tomaž Benčina | 11,224 | 1,265 | 12,489 | 9,083 | 317 | 231 |
| Peter Kavčič | 12,229 | 1,705 | 13,934 | 10,134 | 1,275 | 927 |
| Igor Stebernak | 20,406 | 7,557 | 27,963 | 20,090 | 337 | 245 |
| Jure Valjavec | 10,219 | 1,265 | 11,484 | 8,352 | 0 | 0 |
| Milan Tomaževič | 10,018 | 1,716 | 11,734 | 8,534 | 278 | 202 |
| Žiga Škerjanec | 10,188 | 5,852 | 16,040 | 11,666 | 278 | 202 |
| Mario Gobbo | 9,339 | 2,156 | 11,495 | 7,572 | 0 | 0 |
| Peter Celar | 20,210 | 6,721 | 26,931 | 19,587 | 730 | 531 |
| Branko Gorjan | 18,708 | 2,981 | 21,689 | 15,775 | 0 | 0 |
| Igor Zupan | 18,708 | 3,421 | 22,129 | 16,095 | 278 | 203 |
| Simon Kolenc* | 3,396 | 1,045 | 4,441 | 3,230 | 0 | 0 |
| Boštjan Koler* | 1,504 | 2,200 | 3,704 | 2,694 | 0 | 0 |
| Luka Kumer* | 2,782 | 275 | 3,057 | 2,224 | 0 | 0 |
| TOTAL | 187,084 | 42,405 | 229,489 | 165,873 | 4,326 | 3,146 |
All the above-mentioned 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.
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 maximize the objective monitoring of the achievement of annual and medium-term 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 equaling 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.
| Triglav Group | Zavarovalnica Triglav | |||
|---|---|---|---|---|
| 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | |
| Outstanding subordinated receivables | 63,743,330 | 49,749,916 | 54,851,990 | 43,301,366 |
| Alternative investments | 36,317,208 | 43,651,573 | 34,145,677 | 38,348,369 |
| Bonds, guarantees and other sureties issued | 864,880 | 3,160,942 | 0 | 0 |
| Contingent assets | 5,302,124 | 4,570,811 | 2,730,891 | 2,757,155 |
| Receivables from option agreements | 0 | 0 | 0 | 0 |
| Receivables from forward contracts | 19,281,915 | 25,579,103 | 19,281,915 | 19,269,103 |
| Contingent liabilities | 298,647 | 332,467 | 0 | 0 |
| Properties under acquisition | 46,862 | 8,820 | 0 | 0 |
| Assets under management | 167,229,892 | 95,640,312 | 0 | 0 |
| TOTAL OFF-BALANCE SHEET ITEMS | 293,084,859 | 222,693,944 | 111,010,473 | 103,675,993 |
President of the Management Board into the court register, and to pay compensation amounting to EUR 516,399. Alternatively, Matjaž Rakovec requested that Zavarovalnica Triglav d.d. be obliged to reappoint him President of the Management Board and to recognise uninterrupted performance of his function of President of Zavarovalnica Triglav’s Management Board, including all the rights arising from the employment agreement, for the entire period of his unlawful dismissal from the office of President of the Management Board until his reappointment. Currently, only the dispute over the payment of compensation for non-pecuniary damage is still pending, as Ljubljana District Court ruled that Matjaž Rakovec is entitled to compensation in the amount of EUR 6,000, whereas his claim amounted to EUR 80,000. Zavarovalnica Triglav d.d. led an appeal against the court’s decision, which has not yet been decided. The claim regarding the payment of pecuniary damage was referred to Ljubljana Labour and Social Court.
In the repeated proceedings (Ref. No. I Pd 421/2019), Ljubljana Labour and Social Court assessed the plaintiff’s claim for compensation of salaries, annual leave allowances, preventive medical examinations, training, annual insurance premiums and bonuses (amount in dispute: EUR 436,399.42 with all dues) in terms of compensation for damages. The primary claim was rejected in part by the court for the reason of lis pendens (the major part of the claim based on salaries and annual leave allowances) and res judicata (the major part of the claim based on training), and dismissed it in part. The court rejected the plaintiff’s alternative claim in its entirety. The plaintiff led an appeal against the said court decision, and Zavarovalnica Triglav d.d. led a response to the appeal.
The decision to reject the plaintiff’s claim seeking to establish that the termination of his employment agreement and employment relationship was unlawful and to reappoint him to his previous office is final and was upheld by the Supreme Court of the Republic of Slovenia (Judgment VIII Ips 105/2018). Matjaž Rakovec’s employment agreement was thus terminated in a lawful manner and by said decision the proceedings concerning the alleged unlawfulness of the termination of his employment agreement and employment relationship conducted before the ordinary court were concluded. The constitutional complaint lodged by the plaintiff against the Supreme Court’s judgment was not admitted for consideration.
In the repeated proceedings (Ref. No. I Pd 394/2019), the Labour and Social Court assessed the plaintiff’s claim for the compensation of salaries and annual leave allowances (amount in dispute: EUR 75,625.16 with all dues) also in terms of compensation for damages. The court of first instance rejected the claim in the part under point 3 of the claim, which reads “and with all the rights arising therefrom,” regarding the calculation and payment of salary compensation for the period from May 2016 to his return to work and annual leave allowances for 2016 and all subsequent years until his return to work.
from June 2013 to April 2016 and for the payment of annual leave allowances for 2015 with statutory default interest. The Higher Labour and Social Court rejected Matjaž Rakovec’s appeal and upheld the impugned judgment.
Zavarovalnica Triglav d.d. made provisions for the purpose of this dispute in the amount of EUR 82,000.
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 2021.
A significant non-adjusting event after the reporting date is the war in Ukraine, which began on 24 February 2022. Until the approval of the annual report, the scale of this war and related sanctions against Russia and Belarus had not yet been known. The management carefully analysed the exposure of the Group and the Company to the aforementioned situation and assessed the potential impacts on their operations. The analysis was conducted in terms of the direct effects of the war, in terms of sanctions against Russia and Belarus and in terms of the increased risks of cyberattacks.
ordinar y operations. However, sanc tions against Russ ia and Belarus could af f e ct the Group’s opera tions. Sanc tions have already had a signicant impac t on nancial m arkets and payment transac tions. Direc t exp osure to Russian issuers of securities, i.e. mostl y government bonds, account s for 0.5% of the Group’s b ond por t fo lio. According to the most pessimistic scenario, these bonds will be fully impaired, which will reduce the Group’s investment re turn and prot for 2022.
The high level of volatilit y reco rded in the movement of the v alue of sto ck indices af fe c ts the value of the Group ’s equit y p or t folio. Until the approval of the annual repor t, general declines in the value o f stock price s were recorde d, with a negligible impact on pro t or loss. T he fall in value was ma inly due to a decline i n other comprehensive income. If the fall i n value were sign ic ant or long-lasting, thi s would also decrease prot o r loss for the year. The sensitivit y analysis of changes in equit y price s is presente d in Risk Man agement, Se c tion 2. 4. 2 Equ it y risk.
In carr ying out it s regular ins urance and reinsurance transac tions, the Group es timates that the main ris k arises from the de teriorating credit qualit y of Russia n reinsurance companies with which the Group operates. In addition, there is the risk of ban on international payment transac tions with Russi an reinsurance companies. The Group cu rren tly has 1.6% of claims provis ions for claims incurred which are reinsured w ith Russ ian reinsu rance companies. Ac cording to the most pessimistic scenario, i.e. the imposition of a com ple te block on the inte rnational pa yment transac tions of Russia n reinsurance compa nies or a complete suspension of their opera tions, the Group would h ave to assume the whol e share of provisions itself, reducing its prot or lo ss.
The Group also pays special at tention to c yber risk s. Since 22 February 2022, an increase in the scope o f online ac tivities has be en seen, such as an increase in the n umber of emails using social engineering ( e.g. phishing) and an increa se in the sc anning o f the Group ’s pu blic IP addresse s. As a re sult, more at tention is being paid to the regular monitoring of po tential incidents.
The business continuity plan that addresses c yb er risks is also in place. C yb er risk ma nagement is presente d in more det ail in Risk Management (Sec tion Challeng es an d opp or tun ities o f to day and Sec tion 2. 7 O pe rat ional r isks).
Based on the per formed analysis, there are no indications that these non-adjusting events af ter the repor ting date po se a risk to the Group in term s o f its abilit y to continue as a going concern. The issue of a guarantee for po tential in ves tment oppo r tun ities is also a materia l non-adjusting event. A contingent liability arising from a given gua rantee w ill not signicantly af fec t the amount of the Gr oup’s ass et s.
in EUR
| 31 December 2021 | 31 December 2020 | |||||||
| Statement of financial position for PDPZ funds | PDPZ – skupina | PDPZ – zajamčeni | PDPZ – zmerni | PDPZ – drzni | ||||
| ASSETS | 249,789,207 | 209,337,165 | 20,062,106 | 20,449,892 | 238,022,822 | 210,130,825 | 14,903,162 | 13,002,992 |
| Investment property and other real property rights | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investment property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 245,306,210 | 206,801,643 | 18,953,886 | 19,550,681 | 232,607,973 | 207,613,047 | 12,892,078 | 12,102,848 |
|---|---|---|---|---|---|---|---|
| - loans and deposits | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| - debt securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| - debt securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| - equity securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 245,306,210 | 206,801,643 | 18,953,886 | 19,550,681 | 232,607,973 | 207,613,047 | 12,892,078 | 12,102,848 | |
|---|---|---|---|---|---|---|---|---|
| - debt securities | 180,910,694 | 175,170,224 | 5,543,010 | 197,460 | 209,318,178 | 205,749,608 | 3,381,150 | 187,420 |
| - equity securities | 64,395,516 | 31,631,419 | 13,410,877 | 19,353,221 | 23,289,795 | 1,863,439 | 9,510,928 | 11,915,428 |
| 28,662 | 1,771,999 | 479,415 | 686,357 | 9,697 | 1,828,602 | 392,015 | 567,234 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 28,662 | 1,771,999 | 479,415 | 686,357 | 9,697 | 1,828,602 | 392,015 | 567,234 |
|---|---|---|---|---|---|---|---|
| 4,454,335 | 763,522 | 628,804 | 212,855 | 5,405,152 | 689,176 | 1,619,069 | 332,910 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 2,137,172 | 2,137,172 | 0 | 0 | 3,146,747 | 3,146,747 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 2,137,172 | 2,137,172 | 0 | 0 | 3,146,747 | 3,146,747 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 249,789,207 | 209,337,165 | 20,062,106 | 20,449,892 | 238,022,822 | 210,130,825 | 14,903,162 | 13,002,992 |
|---|---|---|---|---|---|---|---|
| 249,216,841 | 208,763,416 | 20,031,760 | 20,421,665 | 237,495,087 | 209,637,873 | 14,883,467 | 12,973,747 |
|---|---|---|---|---|---|---|---|
| 166,070,634 | 166,070,634 | 0 | 0 | 161,802,005 | 161,802,005 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 42,692,782 | 42,692,782 | 0 | 0 | 47,835,868 | 47,835,868 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 40,453,425 | 0 | 20,031,760 | 20,421,665 | 27,857,214 | 0 | 14,883,467 | 12,973,747 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 564,811 | 501,184 | 29,462 | 27,252 | 524,297 | 473,268 | 19,211 | 28,831 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 261,582 | 211,915 | 23,737 | 25,931 | 250,719 | 212,887 | 19,211 | 18,621 |
|---|---|---|---|---|---|---|---|
| 296,316 | 289,269 | 5,725 | 1,321 | 270,591 | 260,381 | 0 | 10,210 |
|---|---|---|---|---|---|---|---|
| 6,914 | 0 | 0 | 0 | 2,987 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 7,555 | 72,565 | 884 | 975 | 3,438 | 19,684 | 484 | 414 |
|---|---|---|---|---|---|---|---|
| 2,137,172 | 2,137,172 | 0 | 0 | 3,146,747 | 3,146,747 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 2,137,172 | 2,137,172 | 0 | 0 | 3,146,747 | 3,146,747 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 31 December 2021 | 31 December 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Statement of financial position for funds posted separately | Renta1 | Renta2 | Renta1 | Renta2 | |||||
| ASSETS | 45,048,536 | 31,703,341 | 43,680,668 | 24,080,691 | |||||
| Investment property and financial investments | 43,735,837 | 31,375,017 | 41,821,054 | 23,166,231 | |||||
| Investment property | 0 | 0 | 0 | 0 | |||||
| Financial investments in subsidiaries and associates | 0 | 0 | 0 | 0 | |||||
| Investments in subsidiaries | 0 | 0 | 0 | 0 | |||||
| Investments in associates | 0 | 0 | 0 | 0 | |||||
| Other financial investments | 43,735,837 | 31,375,017 | 41,821,054 | 23,166,231 | |||||
| Shares and other floating rate securities and fund coupons | 1,980,828 | 1,980,828 | 0 | 0 | |||||
| Debt and other fixed return securities | 41,755,009 | 29,394,190 | 41,821,054 | 23,166,231 | |||||
| Investment fund shares | 0 | 0 | 0 | 0 | |||||
| Mortgage loans | 0 | 0 | 0 | 0 | |||||
| Other loans | 0 | 0 | 0 | 0 | |||||
| Deposits with banks | 0 | 0 | 0 | 0 | |||||
| Other financial investments | 0 | 0 | 0 | 0 | |||||
| Reinsurers’ share of technical provisions | 0 | 0 | 0 | 0 | |||||
| - from unearned premium | 0 | 0 | 0 | 0 | |||||
| - from mathematical provisions | 0 | 0 | 0 | 0 | |||||
| - from outstanding claims | 0 | 0 | 0 | 0 | |||||
| - from bonuses and discounts | 0 | 0 | 0 | 0 | |||||
| - from technical provisions for life insurance policy holders who bear investment risk | 0 | 0 | 0 | 0 | |||||
| Receivables | 1,226,482 | 56,325 | 1,393,339 | 0 | |||||
| Receivables from direct insurance | 0 | 42,039 | 0 | 0 | |||||
| - receivables from insurers | 0 | 42,039 | 0 | 0 | |||||
| - receivables from insurance brokers | 0 | 0 | 0 | 0 | |||||
| - other receivables from direct insurance operations | 0 | 0 | 0 | 0 | |||||
| Receivables from re-insurance operations | 0 | 0 | 0 | 0 | |||||
| Other receivables | 1,226,482 | 14,286 | 1,393,339 | 0 | |||||
| Other assets | 86,217 | 271,999 | 466,275 | 914,460 | |||||
| Cash and cash equivalents | 86,217 | 271,999 | 466,275 | 914,460 | |||||
| Other assets | 0 | 0 | 0 | 0 | |||||
| Short-term deferred assets | 0 | 0 | 0 | 0 | |||||
| Accrued income from interest and rent | 0 | 0 | 0 | 0 | |||||
| Short-term deferred expenses | 0 | 0 | 0 | 0 | |||||
| Other short-term deferred items | 0 | 0 | 0 | 0 | |||||
| LIABILITIES | 45,048,536 | 31,703,341 | 43,680,668 | 24,080,691 | |||||
| Fair value reserves | 0 | 0 | 0 | 0 | |||||
| Gross insurance technical provisions | 44,891,698 | 31,650,619 | 43,268,600 | 23,319,615 | |||||
| - gross provisions for unearned premiums | 0 | 0 | 0 | 0 | |||||
| - gross mathematical provisions | 44,891,698 | 31,650,619 | 43,268,600 | 23,319,615 | |||||
| - gross claim provisions | 0 | 0 | 0 | 0 | |||||
| - gross provisions for bonuses and discounts | 0 | 0 | 0 | 0 | |||||
| Gross insurance technical provisions for unit-linked insurance contracts | 0 | 0 | 0 | 0 | |||||
| Liabilities from reinsurers' investments in reinsurance contracts | 0 | 0 | 0 | 0 | |||||
| Other liabilities | 156,837 | 52,722 | 412,068 | 761,076 | |||||
| Liabilities from direct insurance operations | 78,705 | 13,896 | 255,205 | 595,828 | |||||
| - liabilities to policy holders | 13,557 | 608 | 23,251 | 1,005 | |||||
| - liabilities to agents and brokers | 0 | 0 | 0 | 0 | |||||
| - other liabilities from direct insurance operations | 65,148 | 13,288 | 231,954 | 594,823 | |||||
| Liabilities from co-insurance and re-insurance operations | 0 | 0 | 0 | 0 | |||||
| Other liabilities | 78,133 | 38,826 | 156,863 | 165,248 | |||||
| Accruals | 0 | 0 | 0 | 0 |
| in EUR | 31 December 2021 | 31 December 2020 |
|---|---|---|
| ASSE TS | 502,042,853 | 420,875,129 |
|---|---|---|
| Investment property and financial investments | 500,913,405 | 417,297,562 |
| Investment property | 0 | 0 |
| Financial investments in subsidiaries and associates | 0 | 0 |
| Investments in subsidiaries | 0 | 0 |
| Investments in associates | 0 | 0 |
| Other financial investments | 500,913,405 | 417,297,562 |
| Shares and other floating rate securities and fund coupons | 496,834,282 | 374,846,121 |
| Debt and other fixed return securities | 4,079,123 | 42,451,441 |
| Investment fund shares | 0 | 0 |
| Mortgage loans | 0 | 0 |
| Other loans | 0 | 0 |
| Deposits with banks | 0 | 0 |
| Other financial investments | 0 | 0 |
| Reinsurers’ share of technical provisions | 0 | 0 |
| - from unearned premium | 0 | 0 |
| - from mathematical provision | 0 | 0 |
| - from outstanding claims | 0 | 0 |
| - from bonuses and discounts | 0 | 0 |
| - from technical provisions for life insurance policy holders who bear investment risk | 0 | 0 |
| Receivables | 3,476 | 2,139,506 |
| Receivables from direct insurance | 944 | 860 |
| - receivables from insurers | 0 | 0 |
| - receivables from insurance brokers | 0 | 0 |
| - other receivables from direct insurance operations | 944 | 860 |
| Receivables from re-insurance operations | 0 | 0 |
| Other receivables | 2,532 | 2,138,646 |
| Other assets | 1,125,972 | 1,438,061 |
| Cash and cash equivalents | 1,125,972 | 1,438,061 |
| Other assets | 0 | 0 |
| Short-term deferred assets | 0 | 0 |
| Accrued income from interest and rent | 0 | 0 |
| Short-term deferred expenses | 0 | 0 |
| Other short-term deferred items | 0 | 0 |
| 502,042,853 | 420,875,129 | ||||
|---|---|---|---|---|---|
| Fair value reserves | 0 | 0 | |||
| Gross insurance technical provisions | 0 | 0 | |||
| - gross provisions for unearned premiums | 0 | 0 | |||
| - gross mathematical provisions | 0 | 0 | |||
| - gross claim provisions | 0 | 0 | |||
| - gross provisions for bonuses and discounts | 0 | 0 | |||
| Gross insurance technical provisions for unit-linked insurance contracts | 499,681,626 | 420,868,883 | |||
| Liabilities from reinsurers' investments in reinsurance contracts | 0 | 0 | |||
| Other liabilities | 2,361,227 | 6,246 | |||
| Liabilities from direct insurance operations | 1,614 | 6,128 | |||
| - liabilities to policyholders | 0 | 0 | |||
| - liabilities to agents and brokers | 0 | 0 | |||
| - other liabilities from direct insurance operations | 1,614 | 6,128 | |||
| Liabilities from co-insurance and re-insurance operations | 0 | 0 | |||
| Other liabilities | 2,359,613 | 118 | |||
| Accruals | 0 | 0 |
in EUR
| 2021 | 2020 | |||||||||
| PDPZ – skupina | PDPZ – zajamčeni | PDPZ – zmerni | PDPZ – drzni | PDPZ – skupina | PDPZ – zajamčeni | PDPZ – zmerni | PDPZ – drzni | |||
| Financial income | 10,917,769 | 3,519,412 | 2,740,192 | 4,658,165 | 11,604,157 | 7,920,282 | 1,541,520 | 2,142,355 | ||
| Income from dividends and profit sharing | 533,901 | 65,775 | 166,267 | 301,860 | 272,617 | 70,757 | 72,825 | 129,035 | ||
| Interest income | 1,687,331 | 1,602,748 | 76,183 | 8,400 | 2,546,739 | 2,463,715 | 75,775 | 7,249 | ||
| Gains on disposal of financial investments | 1,105,119 | 31,059 | 387,862 | 686,197 | 2,504,029 | 2,074,185 | 256,360 | 173,484 | ||
| Net income from changes in the fair value of investments which are recognised at fair value through profit or loss | 6,159,170 | 1,819,238 | 1,590,022 | 2,749,910 | 6,216,723 | 3,310,125 | 1,110,338 | 1,796,260 | ||
| Other financial income | 1,432,248 | 593 | 519,857 | 911,798 | 64,049 | 1,500 | 26,222 | 36,327 | ||
| Income from investment property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Rental income from investment property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Gains on disposal of investment property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Net income from changes in the fair value of investments, which are recognised at fair value through profit or loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Financial expenses | 6,199,098 | 4,934,565 | 647,202 | 617,330 | 3,919,100 | 1,730,771 | 951,197 | 1,237,132 | ||
| Interest expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Lo sses f rom disposal o f financial investments | 2,028,376 | 1,647,009 | 225,218 | 156,149 | 2,056,951 | 1,126,434 | 437,099 | 493,418 | |
|---|---|---|---|---|---|---|---|---|---|
| Revaluation operating expenses arising from a change in the fair value of financial investment through profit and loss | 4,028,107 | 3,287,556 | 343,592 | 396,959 | 823,878 | 596,330 | 114,160 | 113,388 | |
| Other financial expenses | 142,615 | 0 | 78,393 | 64,222 | 1,038,271 | 8,007 | 399,938 | 630,326 | |
| Expenses from investment property | 0 | ||||||||
| Expenses from management and rental of investment property | 0 | ||||||||
| Losses from disposal of investment property | 0 | ||||||||
| Revaluation operating expenses arising from a change in the fair value of investment property through profit and loss | 0 | ||||||||
| Result of investment activities | 4,718,672 | -1,415,153 | 2,092,990 | 4,040,835 | 7,685,057 | 6,189,511 | 590,323 | 905,223 | |
| Income from payments by investment manager for not achieving the guaranteed return | 0 | ||||||||
| Other income | 0 | ||||||||
| Other expenses directly charged to the guarantee fund in line with the fund management rules | 2,444,631 | 2,070,910 | 192,536 | 181,185 | 2,282,094 | 2,029,864 | 141,327 | 110,903 | |
| Management commission | 2,406,807 | 2,070,910 | 172,848 | 163,049 | 2,258,025 | 2,029,864 | 127,790 | 100,371 | |
| Custodian bank fees | 13,436 | 0 | 6,914 | 6,522 | 9,127 | 0 | 5,112 | 4,015 | |
| Auditing expenses | 418 | 0 | 209 | 209 | 2,720 | 0 | 1,360 | 1,360 | |
| Information expenses relating to guarantee fund members | 0 | ||||||||
| Brokerage expenses for the purchase and sale of securities | 0 | ||||||||
| Other expenses (which, according to the management rules, are) directly charged to the guarantee fund | 23,970 | 0 | 12,565 | 11,404 | 12,222 | 0 | 7,065 | 5,157 | |
| Other expenses | 0 | ||||||||
| Net profit intended for the insured | 2,274,041 | -3,486,063 | 1,900,453 | 3,859,651 | 5,402,963 | 4,159,647 | 448,996 | 794,320 |
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Income statement of the guarantee fund backing additional pension insurance during the annuity payout period | Renta 1 | Renta 2 | Renta 1 | Renta 2 | |
| Transfer of funds from the pension scheme of additional pension insurance | 5,929,143 | 13,773,514 | 3,360,627 | 9,633,650 | |
| This legal entity | 3,835,536 | 4,820,151 | 1,523,152 | 3,817,940 | |
| Other insurance company | 0 | 0 | 0 | 0 | |
| Other pension companies | 2,093,608 | 8,953,363 | 1,837,475 | 5,815,710 | |
| Mutual pension fund | 0 | 0 | 0 | 0 | |
| Income from investments | 1,579,822 | 203,815 | 2,591,613 | 675,110 | |
| Income from dividends | 0 | 0 | 0 | 0 |
| Income from other investments | 1,455,993 | 124,729 | 1,807,500 | 151,931 | |
|---|---|---|---|---|---|
| Income from land and buildings | 0 | 0 | 0 | 0 | |
| Interest income | 304,028 | 124,729 | 414,284 | 151,931 | |
| Other investment income | 1,151,965 | 0 | 1,393,216 | 0 | |
| Income from asset value adjustments | 0 | 0 | 0 | 0 | |
| Profit on disposal of investments | 123,830 | 79,085 | 784,113 | 523,179 |
| Claims incurred | 3,351,330 | 3,633,754 | 3,526,771 | 2,521,704 | ||||
|---|---|---|---|---|---|---|---|---|
| Gross claims settled | 3,351,330 | 3,633,754 | 3,526,771 | 2,521,704 | ||||
| Change in gross provisions for claims outstanding | 0 | 0 | 0 | 0 | ||||
| Change in other net technical provisions (+ /–) | 3,500,524 | 9,702,071 | 1,710,413 | 7,354,957 | ||||
| Change of mathematical provisions (+/ –) | 3,500,524 | 9,702,071 | 1,710,413 | 7,354,957 | ||||
| Change of other net technical provisions (+ /–) | 0 | 0 | 0 | 0 |
| Expenses included in policies | 621,641 | 565,387 | 583,473 | 375,476 | |
|---|---|---|---|---|---|
| Initial expenses | 69,559 | 418,447 | 55,124 | 274,749 | |
| Collection, administrative expenses | 444,160 | 0 | 415,746 | 0 | |
| Costs of claims settlement | 107,922 | 146,940 | 112,603 | 100,727 | |
| Net operating expenses | 155,155 | 281,503 | 139,398 | 194,141 | |
| Acquisition costs | 0 | 156,369 | 0 | 112,066 | |
| Change of deferred acquisition costs (+/ –) | 0 | 0 | 0 | 0 | |
| Other operating expenses | 155,155 | 125,135 | 139,398 | 82,075 | |
| Depreciation of assets used in insurance businesses | 11,490 | 9,617 | 9,105 | 5,507 | |
| Labour costs | 70,613 | 59,103 | 64,734 | 39,153 | |
| - wages and salaries | 49,088 | 41,086 | 45,565 | 27,559 | |
| - social security and pension insurance costs | 8,806 | 7,370 | 7,561 | 4,573 | |
| - other labour costs | 12,719 | 10,646 | 11,608 | 7,021 | |
| Costs of services provided by natural persons other than sole proprietors (costs under work contracts, service contracts and other relationships), together with duties and charges borne by the company | 167 | 140 | 198 | 120 | |
| Other operating expenses | 72,885 | 56,274 | 65,361 | 37,295 |
| Income from reinsurance commissions | 0 | 0 | 0 | 0 |
|---|---|---|---|---|
| Expenses from investments | 35,470 | 76,117 | 131,583 | 56,623 |
|---|---|---|---|---|
| Depreciation and amortization of assets not used in operations | 0 | 0 | 0 | 0 |
|---|---|---|---|---|
| Expenses arising from asset management | 29,112 | 18,812 | 108,001 | 53,649 |
|---|---|---|---|---|
| Revaluation financial expenses | 0 | 0 | 0 | 0 |
|---|---|---|---|---|
| Loss on disposal of investments | 6,358 | 57,304 | 23,582 | 2,974 |
|---|---|---|---|---|
| Profit or loss of the guarantee fund | 0 | 0 | 0 | 0 |
|---|---|---|---|---|
| Profit or loss of the guarantee fund | 466,486 | 283,884 | 444,075 | 181,335 |
|---|---|---|---|---|
| 2021 | 2020 | |
|---|---|---|
| Gross written premium | 69,868,754 | 56,640,852 |
| Income from investments | 72,124,822 | 17,943,614 |
| Income from dividends | 5,583 | 3,832 |
| Income from other investments | 67,252,158 | 15,401,135 |
| Income from land and buildings | 0 | 0 |
| Interest income | 1,835 | 538,380 |
| Other investment income | 67,250,323 | 14,862,755 |
| - financial income from revaluation | 67,250,323 | 14,862,755 |
| - other financial income | 0 | 0 |
| Income from asset value adjustments | 0 | 0 |
| Profit on disposal of investments | 4,867,081 | 2,538,647 |
| Expenses from cash surrender value | 50,176,608 | 48,338,150 |
| Ordinary termination | 22,057,919 | 25,651,724 |
| Extraordinary termination | 28,118,690 | 22,686,426 |
| - withdrawal from insurance contract | 26,141,740 | 21,063,758 |
| - cancellation of insurance contract | 0 | 0 |
| - death of the insured person | 1,976,950 | 1,622,668 |
| Change in other net technical provisions (+ /–) | 78,911,179 | 6,525,905 |
|---|---|---|
| Change of mathematical provisions (+/ –) | 78,911,179 | 6,525,905 |
| Change of other net technical provisions (+ /–) | 0 | 0 |
| Fund management costs | 10,406,903 | 7,922,857 |
| Entry fees | 2,743,858 | 792,926 |
| Exit costs | 0 | 0 |
| Management commission | 7,663,045 | 7,129,931 |
| Expenses from investments | 2,498,885 | 11,797,554 |
| Depreciation and amortization of assets not used in operations | 0 | 0 |
| Expenses arising from asset management, interest expenses and other financial expenses | 5,075 | 0 |
| Revaluation financial expenses | 2,037,470 | 10,473,629 |
| Loss on disposal of investments | 456,340 | 1,323,925 |
| Net profit for the period | 0 | 0 |
When a reinsurance company assumes from other insurance and reinsurance companies the portion of the risk that exceeds their retention limits.
The legally justified amount of net profit for the current year, net profit brought forward 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 Shareholders to dividends, other reserves and other purposes, and carried forward to the next year.
A party to a reinsurance contract who passes a portion of their assumed risks to reinsurance. The recipient of those risks is typically an insurance company. To cede means to pass a portion of assumed risk to the reinsurer.
The sum of growth in the share price in the accounting period and the dividend yield as at the reporting date.
Total revenue is composed of gross written insurance, coinsurance and reinsurance written premiums, other insurance income and other income.
The ratio of net profit 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.
The ratio of net profit for the period to the average balance of shareholders’ equity in the period.
The ratio of net profit to the average balance of shareholders’ equity held by the owners of the controlling company in the accounting period.
Comprise gross claims incurred (benefits, claim payments and appraisal costs) less reinsurers’ and coinsurers’ shares of gross claims paid, adjusted for any change in net claims provisions, plus equalization scheme expenses for supplementary health insurance.
Comprises gross written premium less written premium ceded to reinsurers and coinsurers, adjusted for the change in net unearned premium.
Shares held by shareholders who own 5% or less of shareholders’ equity.
Comprises net claims incurred and other insurance expenses, expenses from financial assets, other expenses, operating expenses, dividend payments, tax expense, community investment (prevention activities, donations, sponsorships), employee wages, allowances and benefits.
The ratio of gross dividends per share to price per share on a given day.
Insurance that is underwritten as a supplement to another (precisely defined) insurance and that cannot be underwritten independently.
Difference between income and expenses from financial assets. Income from 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 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 investment does not include net unrealized gains and losses on unit-linked life insurance assets.
(for life insurance products with a savings component) Insured event in which the insurer pays the sum insured, together with bonuses after the insured survives an agreed insurance period.
Provisions for incurred but not yet reported claims.
The reduction of sums insured in life insurance with a savings component, which is carried out if the policyholder stops paying premiums. 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.
Ratio of stockholders’ equity to the number of outstanding shares on the reporting date.
The ratio of available own funds eligible for covering the solvency capital requirement to the solvency capital requirement.
An insurance company that conducts non-life and life insurance business.
In the insurance industry, the terms gross and net typically relate to quantities and ratios before and after the deduction for reinsurance.
A component of insurance technical provisions that represents the component of gross written premium that relates to future or subsequent accounting periods.
Gross operating expenses are recognised as original costs by nature.
Own assessment of risks to which the insurance company’s business is exposed, including the risks it may be exposed to in the future, and an assessment of the appropriateness of available own funds to cover them.
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 in the accounting period divided by the average number of employees at an insurance company.
Benefits and claims calculated for all or a portion of settled claims in the accounting period, including claim settlement costs.
Ratio of the sum of operating expenses, expenses for bonuses and discounts and other net insurance expenses (calculated as the difference between other insurance expenses and other insurance income) to net non-life and health insurance premium earned.
The termination of a life insurance policy that results in the pay-out of the value thereof (saved assets and mathematical provisions, less the costs incurred by the insurance company).
The ratio of the total value of share turnover in the accounting period to the number of trading days in that period.
Reinsurance is the insurance of amounts over the internal risk equalisation rate of a given insurance company with another insurance company registered to provide reinsurance services.
The portion of non-life insurance premiums that the insurance company allocates to prevention activities to mitigate future risks.
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.
The amount of subrogation claims that were created in the accounting period as subrogation receivable based on a ruling of the competent court, an agreement with the person liable to subrogation, or the payment of benefits with regard to credit insurance.
A risk profile is a quantitative assessment of the risks to which the 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.
Costs that the insurance company incurs in the acquisition of new insurance contracts are deferred equally for the entire duration of those contracts for accounting purposes. Thus, the one-time cost incurred when insurance is underwritten is deferred equally over the entire insurance period.
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.
Provisions for losses incurred that have been reported but not settled (provisions after inventory).
The European Union’s regulatory framework in the area of insurance, which defines the calculation of capital adequacy, and the governance of and reporting by insurance companies. The insurance company’s available own funds must be at least equal to the assessment of assumed risks, as set out in the regulatory framework.
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.
Operating expenses from insurance transactions as a proportion of gross written premium.
Ratio of the sum of net claims incurred and changes in other insurance technical provisions to net non-life and health insurance premium income.
The value of a company calculated as the product of the closing share price and the number of shares on the reporting date.
Comprises net premium income, other insurance income, income from financial assets and other income.
Comprehensive income is composed of two elements. The first element comprises net profit or loss for the accounting period from the income statement. The second element comprises other comprehensive income, which discloses the effects of other income and expense items that are not recognised in the income statement, but affect the balance of shareholders’ equity, primarily due to changes in fair value reserve.
Difference between economic value generated and economic value distributed.
Ratio of gross written premium to the number of inhabitants of a specific country.
Insurance premium as a proportion of gross domestic product (GDP).
The amount set out in an insurance contract that the policyholder pays to the insurance company. Insurance premium covers the payment of current and future claims, the costs of prevention activities and the insurance company’s operating expenses.
Several related insurance classes treated as a group. The Insurance Act groups insurance classes 1 to 18 in the non-life insurance group and insurance classes 19 to 24 in the life insurance group.
Various insurance types that are grouped in accordance with the Insurance Act based on the main types of risks they cover. The Insurance Act defines 24 different insurance classes.
The insurance company must create the necessary insurance technical provisions in connection with all insurance services that it provides. They are intended to cover future insurance liabilities and potential losses due to risks arising from rendered insurance services. They comprise unearned premium, claims provisions, mathematical provisions, provisions for bonuses and discounts, and other insurance technical provisions.
GRI Content Index according to GRI Global Standards- Core option. “This report has been prepared in accordance with the GRI Standards: Core option.”
| GRI Standard and Disclosure | Disclosure Section/Page number | Remarks/Omissions |
|---|---|---|
| GRI 101: Foundation 2016 | ||
| GRI 102: General Disclosures | ||
| 102-1 Name of the organisation | 2.3/12 | |
| 102-2 Activities, brands, products, and services | 2.8/17 | |
| 102-3 Location of headquarters | 2.3/12 | |
| 102-4 Location of operations | 2.8/17, 7.4/56 | |
| 102-5 Ownership and legal form | 6.3/50 | |
| 102-6 Markets served (geographic location, sectors served and types of customers and beneficiaries) | 2.8/17, 7.4/55 | |
| 102-7 Scale of the organisation | 2.1/11, 2.2/11, 12.4.2/121 | |
| 102-8 Information on employees and other workers by employment contract, region and age | 12.4.2/122 | |
| 102-9 Supply chain | 12.4.4/str. 137 | Number of suppliers is not reported. |
| 102-10 Significant changes to the organisation’s size, structure, ownership, or supply chain | 2.8.4/20, 5.4/45, 6.3/50, 12.4.4/137 | |
| 102-11 Precautionary Principle or approach | Risk Management/161–200 | |
| 102-12 A list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the |
organisation subscribes, or which it endorses
5.2/36, 12.5/139
1./8–10
102-16 Values, principles, standards, and norms of behaviour and the Code of Ethics
12.5/138
1 0 2 -1 8
5.3/37, 5.4/45
102-4 A list of stakeholder groups engaged by the organisation
12.2/108
102-41 Percentage of total employees covered by collective agreement
12.4.2.1/123
102-42 The basis for identifying and selecting stakeholders with whom to engage
6.5/52, 12.2/108
102-43 The organisation’s approach to stakeholder engagement, including frequency of engagement by stakeholder group
2.4/13, 12.2/108, 12.4.1.1/118, 12.4.2.3/125
102-44 Key topics and concerns that have been raised through stakeholder engagement, including how the organisation has responded to those key topics and concerns, including through its reporting
2.4/13, 12.2/108, 12.4.1.1/118, 12.4.2.3/125
GRI and SASB Content Index
Risk Management
| GRI Standard and Disclosure | Section/Page number | Remarks/Omissions |
|---|---|---|
| 102-45 | Entities included in the consolidated financial statements | Accounting Report 2.1.4/216 |
| 102-46 | Defining report content and topic Boundaries | 2.4/13, 12.1/106, GRI Content Index/328 |
| 102-47 | List of material topics | 2.4/13 The essential topics recognised by the Triglav Group are stated in this GRI Content Index. Non-essential topics are not reported. |
| 102-48 | The effect of any restatements of information given in previous reports, and the reasons for such restatements | 2.4/13 |
| 102-49 | Significant changes from previous reporting periods in the list of material topics and topic Boundaries | 2.4/13 Compared to the previous reports, the volume of reported topics did not significantly change. |
| 102-50 | Reporting period | |
| 102-51 | Date of most recent report | 2.4/13 The most recent Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2019 was published on 31 March 2020. |
| 102-52 | Reporting cycle (annually, quarterly) | 2.3/12 |
| 102-53 | Contact point for questions regarding the report | 2.3/212 |
| 102-54 | Claims of reporting in accordance with the GRI Standards | GRI Content Index/328 |
The Company has not yet decided to have the GRI standards externally assured.
| Material topic | Section/Page number | Reason for Omission/Notes |
|---|---|---|
| ECONOMIC IMPACT | GRI 201: Economic Performance | |
| 103-1, 103-2, 103-3 | Explanation of the material topic and its Boundary | 4.2/32, 12.4.3/130 |
| 201-1 | Direct economic value generated and distributed | 12.4.3.2/133 |
| Material topic | Section/Page number | Reason for Omission/Notes |
|---|---|---|
| GRI 305: Emissions 2016 | 103-1, 103-2, 103-3 | Explanation of the material topic and its Boundary |
| 3 0 5 -1 | Direct (Scope 1) GHG emissions | 12.3.2/110 |
| 3 0 5 -2 | Energy indirect (Scope 2) GHG emissions | 12.3.2/111 |
| 30 5-3 | Other indirect (Scope 3) GHG emissions | 12.3.2/111 |
| GRI 306: Waste 2020 | ||
| 3 0 6 -1 | Waste generation and significant waste-related impacts | 12.3.2/110 |
| 3 0 6 -2 | Management of significant waste-related impacts | 12.3.2/113 |
| 30 6 -3 | Waste generated | 12.3.2/113 |
| 306-4 | Waste diverted from disposal | 12.3.2/113 |
| 30 6 -5 | Waste directed to disposal | 12.3.2/113 |
| SOCIAL IMPACT | ||
| GRI 401: Employment 2016 | 103-1, 103-2, 103-3 | Explanation of the material topic and its Boundary |
| 4 0 1 -1 | New employee hires and employee turnover | 12.4.2.1/122 |
Benefits which are standard for full-time employees of the organization but are not provided to temporary or part-time employees, by significant locations of operation.
12.4.2.1/123, 12.4.2.5/129
Total number of employees that returned to work in the reporting period after parental leave ended, by gender
12.4.2.5/129 The number and share of employees who were still employed 12 months after parental leave ended is not reported on.
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary
12.4.2.5/129
Minimum notice periods regarding operational changes, including the information whether the notice period and provisions for consultation and negotiation are specified in collective agreements
12.4.2.5/129
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary
12.4.2.4/126
Occupational health and safety management system
12.4.2.4/126
Hazard identification, risk assessment, and incident investigation
12.4.2.4/126
Occupational health services
12.4.2.4/126
Worker participation, consultation, and communication on occupational health and safety
12.4.2.4/126, 129
Worker training on occupational health and safety
12.4.2.4/127
Promotion of worker health
12.4.2.4/127
Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
12.4.2.4/127
Workers covered by an occupational health and safety management system
12.4.2.4/126
Work-related injuries
12.4.2.4/128
Work-related ill health
12.4.2.4/128
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary
12.4.2.2/124
Average hours of training that the organization’s employees have undertaken during the reporting period, by gender and employee category
12.4.2.2/124 Data capture does not include classification by employee category
Percentage of employees receiving regular performance and career development reviews by gender
12.4.2.2/124
GRI and SASB Content Index
Risk Management
| Material topic | Section/Page number | Reason for Omission/Notes |
|---|---|---|
| GRI: 4 05: Diversity and equal opportunity 2016 | 103-1, 103-2, 103-3 | Explanation of the material topic and its Boundary |
| 4 05 -1 Diversity of governance bodies and employees (gender, age group, representatives of minorities, other indicators of diversity) | 5.3.2.2/40, 5.3.3.2/43, 12.4.2.1/122 | Reporting on the gender and age structure of all employees employed at the first and second management levels and at the Management Board level. |
| 4 05 -2 Ratio of the basic salary and remuneration of women to men for each employee category, by significant locations of operation | 12.4.2.1/123 | |
| GRI 406: Non-discrimination 2016 | 103-1, 103-2, 103-3 | Explanation of the material topic and its Boundary |
| 406-1 Total number of incidents of discrimination during the reporting period and actions taken | 12.4.2.5/130 |
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary 12.5/139
Total number of hours in the reporting period devoted to training on human rights policies or procedures concerning aspects of human rights that are relevant to operations and percentage of employees trained during the reporting period in human rights policies or procedures concerning aspects of human rights that are relevant to operations 12.5/139
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary 12.4.3.1/131
Percentage of operations with implemented local community engagement, impact assessments, and/or development programs 12.4.3.1/131
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary 12.4.4/137
New suppliers that were screened using social criteria 12.4.4/137 Share is not reported.
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary 12.5/137
Political contributions 12.5/137
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary 12.4.1/117
Requirements for product and service information and labelling 12.4.1/117
Total number of incidents of non-compliance with regulations and/or voluntary codes concerning product and service information and labelling 12.4.1.1/119
Total number of incidents of non-compliance with regulations and/or voluntary codes concerning marketing communications, including advertising, promotion, and sponsorships by incidents of non-compliance with regulations resulting in a fine, penalty or warning 12.4.1.1/119
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary 12.5/139
Substantiated complaints concerning breaches of customer privacy and losses of customer data 12.5/139
103-1, 103-2, 103-3 Explanation of the material topic and its Boundary 12.5/138
Significant fines and non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area 12.5/138, 139
| Material topic | Section/Page number | Reason for Omission/Notes |
|---|---|---|
| G4 - FS7 | 12.3.4/114–115 | Monetary value of products and services designed to deliver a specific social benefit |
| G4 - FS8 | 12.3.4/114–115 | Monetary value of products and services designed to deliver a specific environmental benefit |
| G4 - FS13 | 14/145–146 | Access points in low-populated or economically disadvantaged areas by type. Quantitative data on access points are not recorded in this way. |
| G4 - FS14 | 12.4.1/118 | Initiatives to improve access to financial services for disadvantaged people |
| Topic | Accounting metric Code | Section/Page number |
|---|---|---|
| Transparent Information and Fair Advice for Customers | FN-IN-270a.1 | 12.4.1.1/119, 12.4.1.3/119, 12.5/138 |
| Complaints-to-claims ratio | FN-IN-270a.2 | 12.2/109 |
| Customer retention rate | FN-IN-270a.3 | 12.4.1.1/119 |
| Description of approach to informing customers about products | FN-IN-270a.4 | 12.4.1/117 |
| Incorporation of Environmental, Social, and Governance Factors in Investment Management | FN-IN-410a.1 | 7.9/77, 78, 7.11/80 |
| Description of approach to incorporation of environmental, social, and governance (ESG) factors in investment management processes and strategies | FN-IN-410a.2 | 7.9/78, 7.11/80, 12.3.4/115 |
| Policies Designed to Incentivize Responsible Behavior | FN-IN-410b.1 | 12.3.4/114 |
| Discussion of products and/or product features that incentivize health, safety, and/or environmentally responsible actions and/or behaviors | FN-IN-410b.2 | 12.3.4/114 |
| Environmental Risk Exposure | FN-IN-450a.1 | Risk Management: 2.3.1/185 |
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
Ljubljana, March 2022
Total amount of monetary losses attributable to insurance pay outs from (1) modeled natural catastrophes and (2) non-modeled natural catastrophes, by type of event and geographic segment (net and gross of reinsurance)
Systemic Risk Management Exposure to derivative instruments by category
Total fair value of securities lending collateral assets
Description of approach to managing capital and liquidity-related risks associated with systemic non-insurance activities
Transparent Information and Fair Advice for Customers
Number and percentage of covered employees with a record of investment-related investigations, consumer-initiated complaints, private civil litigations, or other regulatory proceedings
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
Description of approach to informing customers about products and services
Percentage of gender and racial/ethnic group representation for (1) executive management, (2) non-executive management, (3) professionals, and (4) all other employees
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
Description of approach to incorporation of environmental, social, and governance (ESG) factors in investment and/or wealth management processes and strategies
Description of proxy voting and investee engagement policies and procedures
Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice, or other related financial industry laws or regulations
Description of whistleblower policies and procedures
Total registered and (2) total unregistered assets under management (AUM)
Total assets under custody and supervision
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