Slovenia's Triglav targets rise in pre-tax profit to 85-95 mln euro in 2021

"The Group’s combined ratio is planned at below 95%, which is in the lower (favourable) end of the range of its average target strategic value of around 95%," Triglav said in a statement revealing its business plan for 2021.

The company gave no comparative figures for the pre-tax profit and gross written premiums it expects to report for 2020.

Triglav said it will operate in difficult and competitive market conditions next year, impacted by the epidemiological situation at the global level and the uncertainty surrounding its scale, while the financial markets will be affected by low/negative interest rates.

"The Group plans to increase the volume of premium, which, together with other factors, will also affect the claims segment. With regard to major CAT [catastrophe] events, similar trends as in previous years are expected and, therefore, its prudently selected reinsurance protection will be maintained," the insurer said.

Triglav will remain focused on cost effectiveness in 2021, streamlining costs not directly related to insurance acquisition, while increasing costs related to investment in information technology and digital transformation activities.

"Considering the aforementioned and backed by underwriting discipline, the Group plans to maintain the profitability of its insurance business in its markets," Triglav noted.

"With regard to asset management, the Group will follow the strategic objective of increasing the volume of assets under management by selling existing savings and insurance products as well as increasing the assets of investment funds managed by its subsidiary Triglav Skladi," it added.

In August, Trigval said its consolidated net profit declined 3% year-on-year to 33.5 million euro in the first half of 2020 as a result of reduced investment return rates and a 12.2 million euro CAT events impact, particularly the Zagreb earthquake in March and the hail storms in Slovenia in February.

The group's consolidated gross written premiums rose 7% on the year to 673.4 million euro in January-June, as premiums on the Slovenian market increased 4% and premiums abroad were up 8%.

Outside Slovenia, the insurer is present in Croatia, Serbia, Bosnia, Montenegro and North Macedonia.

($ = 0.849748 euro)