Financial standing of the Triglav Group in 2013

  • The balance sheet total of the Triglav Group amounted to EUR 3,077.1 million as at reporting date.
  • Total equity capital increased by 3% and reached EUR 590.5 million.

Equity and liabilities

The total value of equity as at 31 December 2013 was EUR 590.5 million or 3% more than the year before. The share of equity in total liabilities increased by 0.8 percentage point; from 18.4% to 19.2%. Equity attributable to the controlling company amounted to EUR 584.3 million, while non-controlling interest holders had EUR 6.2 million. Share capital, divided into 22,735,148 ordinary shares, remained at the 2012 year-end level and totalled EUR 73.7 million.

As a result of a decrease in the value of available-for-sale financial assets, fair value reserve was EUR 44.6 million, having decreased by 14% compared to the 2012 year-end. Share premium equalled EUR 56.9 million, whereas the amount of reserves from profit of EUR 276.7 million includes legal and statutory reserves of EUR 19.6 million, credit risk equalisation reserves of EUR 32.3 million, contingency reserves of EUR 0.5 million, treasury share reserves of EUR 0.5 million and other reserves from profit of EUR 224.2 million. The latter increased by EUR 23.2 million over 2012.

Accumulated profits for the year were EUR 136.3 million (index 101). Apart from net profit this includes 90.1 million of net profit brought forward (index 104). Net profit for the year disclosed in the balance sheet totalled EUR 46.2 million, which was EUR 23.2 million less than net profit disclosed in the income statement, as the Company in compliance with the Companies Act used part of the net profit to form other reserves from profit. According to the Companies Act, the Management Board of Zavarovalnica Triglav may allocate net profit to other reserves, however only up to one half of the net profit remaining after statutory allocations.

As at 31 December 2013, subordinated liabilities totalled EUR 28.2 million, having decreased by 24% over the 2012 year-end, since the bonds with the ticker symbol ZT01 fell due. They accounted for 0.9% of total liabilities.

On the liabilities side, gross insurance technical provisions decreased by 2% to EUR 2,261.4 million as at 31 December 2013. In total liabilities, their share decreased by 0.3 percentage point, from 73.8% to 73.5%. As at 31 December 2013, mathematical provisions amounted to EUR 1,305.9 million, which was 1% higher than at the end of the previous year. Provisions for gross unearned premiums shrunk by 4%, gross claims provisions by 7% and other insurance technical provisions by 13%. Insurance technical provisions are discussed in greater detail under Section 7.8.1.

Financial liabilities as at the 2013 year-end totalled EUR 34.8 million and were 12% below the figure reported one year earlier. Their share accounted for 1.1% of total liabilities.

Operating liabilities as at the reporting date totalled EUR 56.3 million or 3% below the figure reported one year earlier. They accounted for 1.8% of total liabilities, which is 0.1 percentage point less than as at 31 December 2012. Liabilities from direct insurance operations dropped as well, by 3% to EUR 20.2 million. Liabilities from co-insurance and reinsurance operations decreased by 4% to EUR 35.3 million. Current tax liabilities equalled EUR 739 thousand.

Other liabilities

increased by 3%. As at the reporting date, they stood at EUR 59.7 million and represented 1.9% of total liabilities.

Assets

Financial assets equalled EUR 2,432.2 million, decreasing by 1% compared to the 2012 year-end. Their share in total assets grew by 0.7 percentage point and reached 79.0%. Unit-linked insurance assets amounted to EUR 437.7 million and financial investments to EUR 1,994.5 million. In total financial investments, EUR 199.3 million was accounted for by deposits and loans and EUR 224.9 million by investments held to maturity. Moreover, investments available for sale totalled EUR 1,431.0 million and investments recognised at fair value through profit and loss equalled EUR 139.3 million. The structure of financial assets is discussed in greater detail under Section 7.9.

The Triglav Group’s financial investments in associates fell by 29%, caused mostly by Triglav Skladi d.o.o. divesting from ZIF Polara Invest Fond a.d., Banja Luka. Reaching EUR 10.2 million, they accounted for 0.3% of total assets.

Investment property stood at EUR 97.2 million and represented 3.2% of total assets, having decreased by 3%.

The Group’s receivables as at 31 December 2013 were 1% higher compared to the 2012 year-end and equalled EUR 196.3 million. They accounted for 6.4% of total assets. Receivables from direct insurance operations decreased to EUR 96.0 million (index 92). Receivables from co-insurance and reinsurance operations reached EUR 43.3 million (index 101), other receivables stood at EUR 42.3 million (index 109) and current tax receivables at EUR 14.7 million (index 158).

As at 31 December 2013, insurance technical provisions transferred to reinsurance contracts amounted to EUR 64.7 million, which was 23% less than one year earlier. Assets from reinsurance contracts from claim provisions totalled EUR 49.6 million, while unearned premium equalled EUR 15.1 million.

Property, plant and equipment amounted to EUR 122.9 million (index 94), representing 4.0% of total assets. Intangible assets equalled EUR 71.7 million (index 107), accounting for 2.3% of total assets.

As at 31 December 2013, cash and cash equivalents amounted to EUR 29.1 million and were 68% higher than as the end of 2012. Other assets equalled EUR 27.0 million (index 80) and non-current assets held for sale stood at EUR 2.1 million (index 91).

Balance sheet as at 31 December 2013 – according to IFRS

31 Dec. 2013

31 Dec. 2012

Index

Structure 2013

Structure 2012

TOTAL ASSETS

3,077,107,344

3,123,808,393

99

100.0%

100.0%

Intangible assets

71,724,243

66,878,286

107

2.3%

2.1%

Property, plant and equipment

122,850,884

130,350,482

94

4.0%

4.2%

Deferred tax receivables

23,696,799

34,434,717

69

0.8%

1.1%

Investment property

97,245,384

100,186,863

97

3.2%

3.2%

Investments in associates

10,204,674

14,384,184

71

0.3%

0.5%

Financial assets

2,432,183,379

2,445,878,652

99

79.0%

78.3%

Financial investments

1,994,515,763

2,026,996,736

98

64.8%

64.9%

- loans and deposits

199,264,326

273,278,022

73

6.5%

8.7%

- held to maturity

224,880,951

228,416,165

98

7.3%

7.3%

- available for sale

1,431,023,178

1,417,564,782

101

46.5%

45.4%

- recognised at fair value through profit and loss

139,347,308

107,737,767

129

4.5%

3.4%

Unit-linked insurance assets

437,667,616

418,881,916

104

14.2%

13.4%

Reinsurers' share of insurance technical provisions

64,707,528

83,575,712

77

2.1%

2.7%

Receivables

196,328,781

194,850,052

101

6.4%

6.2%

- receivables from direct insurance operations

95,959,929

103,865,001

92

3.1%

3.3%

- receivables from reinsurance and co-insurance operations

43,322,539

42,942,784

101

1.4%

1.4%

- current tax receivables

14,724,095

9,331,709

158

0.5%

0.3%

- other receivables

42,322,218

38,710,558

109

1.4%

1.2%

Other assets

26,973,765

33,680,408

80

0.9%

1.1%

Cash and cash equivalents

29,068,558

17,251,420

168

0.9%

0.6%

Non-current assets held for sale

2,123,349

2,337,617

91

0.1%

0.1%

EQUITY AND LIABILITIES

3,077,107,344

3,123,808,393

99

100.0%

100.0%

Equity

590,537,457

574,563,757

103

19.2%

18.4%

Controlling interests

584,314,877

567,863,820

103

19.0%

18.2%

- share capital

73,701,392

73,701,392

100

2.4%

2.4%

- share premium

56,866,194

56,710,713

100

1.8%

1.8%

- reserves from profit

276,678,464

253,233,080

109

9.0%

8.1%

- treasury share reserves

452,880

364,680

124

0.0%

0.0%

- treasury shares

-452,880

-364,680

124

0.0%

0.0%

- fair value reserve

44,605,435

51,819,054

86

1.4%

1.7%

- net profit/loss brought forward

90,083,115

86,769,095

104

2.9%

2.8%

- net profit/loss for the year

46,213,507

48,809,667

95

1.5%

1.6%

- currency translation differences

-3,833,230

-3,179,181

121

-0.1%

-0.1%

Non-controlling interests

6,222,580

6,699,937

93

0.2%

0.2%

Subordinated liabilities

28,244,484

37,025,550

76

0.9%

1.2%

Insurance technical provisions

1,826,231,310

1,887,920,781

97

59.3%

60.4%

- unearned premiums

258,066,669

268,424,573

96

8.4%

8.6%

- mathematical provisions

870,733,006

869,949,936

100

28.3%

27.8%

- claims provisions

674,436,244

723,176,114

93

21.9%

23.2%

- other insurance technical provisions

22,995,391

26,370,158

87

0.7%

0.8%

Insurance technical provisions for unit-linked insurance contracts

435,201,724

417,338,984

104

14.1%

13.4%

Employee benefits

11,401,382

10,573,673

108

0.4%

0.3%

Other provisions

16,218,730

19,621,552

83

0.5%

0.6%

Deferred tax liabilities

18,465,042

21,351,998

86

0.6%

0.7%

Other financial liabilities

34,790,998

39,380,566

88

1.1%

1.3%

Operating liabilities

56,325,533

58,150,107

97

1.8%

1.9%

- liabilities from direct insurance operations

20,247,893

20,811,717

97

0.7%

0.7%

- liabilities from reinsurance and co-insurance operations

35,338,592

36,744,115

96

1.1%

1.2%

- current tax liabilities

739,048

594,275

124

0.0%

0.0%

Other liabilities

59,690,684

57,881,425

103

1.9%

1.9%

Financial position indicators

Financial position indicators

2013

2012

2011

The portion of equity in total liabilities

19.2%

18.4%

16.5%

Average equity balance as % of gross written premium

64.7%

56.8%

50.0%

Return on equity

12.0%

13.8%

9.6%

Share of gross insurance technical provisions in total liabilities

73.5%

73.8%

75.4%

Average balance of gross insurance technical provisions as % of gross written premium

253.5%

242.4%

227.7%

Financial assets to total assets ratio

79.0%

78.3%

78.5%

Financial assets to gross insurance technical provisions ratio

107.6%

106.1%

104.1%

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