LJUBLJANA (Slovenia), March 3 (SeeNews) – Slovenian insurer Triglav Group saw its consolidated net profit decline 12% to 73.7 million euro ($89.5 million) in 2020, the group's parent company, Zavarovalnica Triglav d.d. [LJE:ZVTG], said.
The company achieved profit before tax of 90.9 million euro, down 10%, and a 4% increase of written premium to 1.234 billion euro, Zavarovalnica Triglav said in a filing with the Ljubljana Stock Exchange on Tuesday.
"Backed by underwriting discipline, the Group increased its business volume, while prudently managing costs. The unfavourable situation in the financial markets led to a further decline in interest income, whereas expenses increased due to ensuring return on insurance contracts with an embedded guarantee in the long run. Mass claims experience was less favourable than in the preceding year, with the result also affected by higher insurance technical provisions due to the current business conditions," the company said.
As at the 2020 year-end, Zavarovalnica Triglav’s total equity amounted to 870.2 million euro, up 10%, gross insurance technical provisions rose 5% to 3.033 billion euro, and net return on equity was 8.9%, down by 2 percentage points relative to the year before.
"The situation in the business environment and the capital markets had a negative impact on our profit, but we are nevertheless satisfied with the business results. Triglav Group demonstrated its resilience to extremely difficult business conditions, maintaining its financial strength and proving its ability to adapt effectively to changes. This year, financial markets and economic recovery have remained under the impact of the epidemiological situation of unknown proportions at the global level, which means that we will continue to operate in an uncertain and difficult business environment," Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said.
Apart from Slovenia, the insurer is also present in Croatia, Serbia, Bosnia, Montenegro and North Macedonia.
Zavarovalnica Triglav's shares closed 0.3% lower at 31.80 euro on Tuesday on the Ljubljana bourse.
($ = 0.846331 euro)
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