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LJUBLJANA (Slovenia), December 23 (SeeNews) – Slovenia's biggest insurer, Zavarovalnica Triglav [LJE:ZVTG],said on Friday it plans to book a consolidated pre-tax profit of 70 million - 80 million euro ($73 million - $84 million) in 2017, with gross written premiums of 930 million euro.
Gross written premiums will rise by 3.3% on the year in 2017, compared to the planned 900 million euro expected in 2016, the company said in a Ljubljana bourse filing.
"In 2017, the Group plans an increase in consolidated gross written premium compared to the planned level for 2016, while recording similar trends in claims experience as in previous years and lower returns on investment due to the impact of low interest rates," Triglav noted.
The company explained that it expects a relatively favourable macroeconomic environment next year, taking into account the moderate probability of a negative scenario.
"On the Slovene insurance market, the Group’s performance in the life insurance segment will be affected by a high number of maturities due to the aging of the portfolio and surrenders," Triglav commented. "The non-life insurance premium will be affected by the measures for retaining solid and loyal customers with client loyalty programmes, repricing to match competition and measures to improve insurance technical results in individual non-life insurance classes."
The company also said it plans to become the leading provider of innovative and comprehensive insurance-service products and asset management on the existing markets in Southeastern Europe (SEE) by the end of 2020.
"In the long-term the core insurance business will be profitable, whilst the average target combined ratio in non-life insurance will be around 95%. The return on equity (ROE) of the Group will surpass 10% in 2020," Triglav said.
Triglav noted that the Group will continue to operate in six countries of SEE, where it will grow organically, however potential takeovers are not ruled out should an appropriate opportunity present itself.
In the nine months through to September, Triglav's consolidated net profit fell 34% year-on-year to 53.6 million euro affected by weather-related events. The Group’s gross written premiums from insurance and co-insurance contracts in the first nine months edged up 0.3% to 720.7 million euro.