May 30 (SeeNews) - Slovenia's biggest insurer Zavarovalnica Triglav [LJE:ZVTG] has recorded a consolidated net profit of 16.1 million euro ($17.3 million) in the first quarter of 2023, down 39% year-on-year, it said.
Total revenue rose by 12% to 350.4 million euro, result from insurance operations fell by 41% to 19.1 million euro and the group’s gross operating expenses increased by 13% to 98.8 million euro, Zavarovalnica Triglav said in a statement filed with the Ljubljana bourse on Monday.
"Our robust business model and well-diversified product range enabled us to effectively increase the total business volume and achieve a sound investment result amid the favourable situation on the financial markets. At the same time, the Group's year-on-year results were affected by increased expenses and greater claim intensity in the non-life and health insurance segments due to inflation, a lower health insurance result as well as the effects of the selected methodological approaches in the transition to IFRS 17," the head of Zavarovalnica Triglav's management board, Andrej Slapar, said.
The group recorded gross claims paid of 252.3 million euro, up by 27%, as in the largest segment, non-life insurance, gross claims paid grew by 40% to 141.8 million euro.
"Our planned annual profit at Group level (initially planned profit of EUR 95–110 million) was affected by the announced abolition of supplemental health insurance and, above all, the Decree of the Government of the Republic of Slovenia on setting the maximum price of supplemental health insurance premium adopted in April this year, especially its duration. We estimate that, mainly due to its effects and loss-making, this year's planned profit before tax of the Triglav Group may decrease by around 25–40%," Slapar noted.
Apart from Slovenia, the insurer is also present in Croatia, Serbia, Bosnia, Montenegro and North Macedonia
($ = 0.93263 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