LJUBLJANA (Slovenia), November 13 (SeeNews) – Slovenian insurer Triglav Group saw its consolidated net profit decline 14% year-on-year to 50.8 million euro ($60 million) in the first nine months of 2020, the group's parent company, Zavarovalnica Triglav d.d. [LJE:ZVTG], said on Friday.
The drop in profit was mainly the result of the impact of Covid-19 on the global financial markets and partly due to major catastrophe (CAT) events and an increase in provisions as a result of the current business conditions, Zavarovalnica Triglav said in an unaudited interim financial report.
The CAT events were the hail storms in Slovenia, Croatia and North Macedonia, and the earthquake in Zagreb, and have a total estimated cost of 28 million euro, the company said.
The group's consolidated gross written premiums rose 6% on the year to 961 million euro in January-September, as premiums on the Slovenian market increased 5% and premiums abroad were up 6%. Premiums in all three insurance segments grew, with non-life insurance premiums rising 6%, health insurance premiums adding 14%, and life and pension insurance premiums increasing 2%.
Net claims incurred rose 5% on the year to 511 million euro in January-September, while the volume of gross paid claims remained flat at 505 million euro in the period under review.
"The uncertain situation in the second half of 2020 continues to prevent us from giving a reliable annual profit guidance, which was projected to be between EUR 95 million and 105 million. We stand by the already published assessment that annual profit will be lower by 10–25% than planned," Zavarovalnica Triglav's management board president, Andrej Slapar, said in the statement.
"Based on the selected probable scenario of business conditions, we plan to achieve in 2021 an annual profit before tax of EUR 85–95 million, an increased volume of written premium of EUR 1.2–1.3 billion and a combined ratio below 95%," he added, affirming the projections announced in October.
Apart from Slovenia, the insurer is also present in Croatia, Serbia, Bosnia, Montenegro and North Macedonia.
Zavarovalnica Triglav's shares traded 0.35% higher at 28.30 euro by 1446 CET on Friday on the Ljubljana bourse.
($ = 0.846331 euro)
Zavarovalnica Triglav d.d. is among the biggest insurers in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here