Financial result of the Triglav Group in 2013

  • Despite tight operating conditions, the Triglav Group ended the fiscal year 2013 with a net profit of EUR 69.9 million and recorded a 12% return on equity.
  • Combined ratio in non-life insurance, which shows the profitability of operations, was 91.0%.
  • Return on financial investments totalled EUR 70.3 million.

Despite tight operating conditions in the reporting year, the Triglav Group ended 2013 with a profit. Profit before tax amounted to EUR 83.6 million or 7% less than in 2012. Net profit decreased by 5% to EUR 69.9 million. Net return on equity was 12.0%, having decreased by 1.8 percentage points compared to the preceding year.

Combined ratio in non-life insurance, which shows the profitability of operations, was 91.0% (2012: 89.6%). Any value of this ratio below 100 means that the non-life insurance portfolio as the core business (excluding return on investments) is earning a profit.

Premium income, claims incurred and operating expenses

Net premium earned (calculated on the basis of gross written insurance and co-insurance premiums, reduced by the reinsurers' share and adjusted by the change in gross unearned premiums taking into account the reinsurers' share in unearned premiums) amounted to EUR 837.6 million or 5% less than in 2012. Net premium earned from health insurance grew by 13%, whilst net non-life and life premium earned decreased by 8% and 6% respectively. Gross written premiums from reinsurance and co-insurance operations totalled EUR 70.9 million, representing a 5% decrease compared to 2012. Net unearned premium totalled EUR 7.7 million, representing a 67% drop compared to the previous year.

Net claims incurred (gross claims increased by loss adjustment costs, reduced by the reinsurers' and co-insurers' shares and subrogated receivables, adjusted by the change in gross claims provisions taking into account the reinsurers' and co-insurers’ shares in these provisions) decreased by 1% and totalled EUR 571.7 million. Net claims incurred from non-life insurance fell by 7%, while those from life insurance increased by 5% and those from health insurance by 10%. The reinsurers' and co-insurers' shares of gross claims increased compared to 2012 by 59% and reached EUR 35.8 million. The change in net claims provisions was EUR –28.0 million, having increased by 42% compared to the preceding year. Equalisation scheme expenses for supplemental health insurance increased by 8% and totalled EUR 8.0 million.

Operating expenses (costs of insurance contract acquisitions and other operating expenses) remained approximately at the same level as the year before (index 100), reaching EUR 199.4 million. Acquisition costs amounted to EUR 128.0 million (index 100), whereas other operating expenses equalled EUR 71.3 million (index 101).

Income and expenses from financial assets

Income from financial assets rose by 6% and reached EUR 184.7 million. Income from financial assets in associates totalled EUR 63 thousand. Income from other financial assets decreased by 1% to EUR 136.2 million. Net unrealised losses on unit-linked life insurance assets climbed by 63% to EUR 48.5 million. Interest income of EUR 76.1 million accounted for the largest share of financial assets. Realised gains on disposals amounted to EUR 28.7 million, fair value gains from financial assets totalled EUR 22.2 million, dividend income reached EUR 2.9 million and other financial income EUR 6.3 million. Profit on equity investments in associates and joint venture companies totalled EUR 40 thousand.

Consolidated financial expenses increased by 13% to EUR 114.4 million. Expenses from financial assets in associates totalled EUR 1.4 million, while expenses from other financial assets equalled EUR 79.2 million. Net unrealised losses on unit-linked life insurance assets increased substantially and reached EUR 33.8 million (in 2012 EUR 676 thousand). The main portion of financial expenses is represented by permanent impairment of EUR 28.1 million, a 36% decrease compared to 2012.

The portfolio investments of the Triglav Group were permanently impaired, primarily due to the situation and developments in the Slovene banking sector. As a result of decreased value of financial assets fair value losses increased by 24%, amounting to EUR 23.2 million.

Return on financial investments , which represents the difference between income and expenses from financial assets, amounted to EUR 70.3 million and decreased by 3% compared to 2012. A lower return was mostly due to a lower return on long-term business fund backing unit-linked life insurance.

The return on financial investments of the Triglav Group in the period from 2011 to 2013

Change in other insurance technical provisions and other income and expenses

Changes in other technical provisions summed up to EUR 2.7 million (2012: EUR –1.4 million) with change in mathematical provisions totalling EUR 4.1 million (2012: EUR 0.9 million). Change in other provisions amounted to EUR –1.4 million, primarily owing to lower provisions for unexpired risks, the value of which is based on net claims and expenses by individual insurance class. The improvement in these results caused a decrease in provisions.

Change in insurance technical provisions for unit-linked insurance contracts equalled EUR 17.9 million (index 34) due to an increase in price of fund units. Expenses for bonuses and discounts amounted to EUR 6.5 million (index 76).

Other insurance income totalled EUR 7.9 million, having decreased by 62%. Other income stood at EUR 76.6 million, representing a 1% increase over the preceding year. Other insurance expenses totalled EUR 23.7 million (index 55), whereas other expenses amounted to EUR 87.0 million (index 104).

Income statement for 2013 –according to IFRS

2013

2012

Index

Net premium income

837,642,667

884,367,872

95

- gross written premium

900,892,580

936,263,023

96

- ceded written premium

-70,920,674

-74,983,245

95

- change in unearned premiums

7,670,761

23,088,094

33

Income from financial assets

184,692,544

173,651,547

106

Income from financial assets in associates

63,423

5,754,725

0

- profit on equity investments accounted for using the equity method

39,532

1,720,451

0

- interest income

0

0

0

- fair value gains

0

0

0

- realised gains on disposals

23,891

0

0

- other financial income

0

4,034,274

0

Income from other financial assets

136,153,098

138,074,118

99

- interest income

76,142,863

82,502,711

92

- dividends

2,856,987

3,120,364

92

- fair value gains

22,249,328

17,616,160

126

- realised gains on disposals

28,643,036

29,270,460

98

- other financial income

6,260,884

5,564,423

113

Net unrealised gains on unit-linked life insurance assets

48,476,023

29,822,704

163

Other income from insurance operations

7,910,551

20,702,957

38

- fees and commission income

2,493,159

13,741,969

18

- other income from insurance operations

5,417,392

6,960,988

78

Other income

76,614,124

76,039,900

101

Net claims incurred

571,663,099

578,938,271

99

- gross claims settled

627,508,334

613,765,178

102

- reinsurers' and co-insurers' share

-35,840,696

-22,515,985

159

- changes in claims provisions

-27,985,203

-19,720,565

142

- equalisation scheme expenses for supplemental health insurance

7,980,664

7,409,643

108

Change in other insurance technical provisions (excluding unit-linked)

2,651,409

-1,446,818

0

Change in insurance technical provisions for unit-linked insurance contracts

17,906,261

52,882,779

34

Expenses for bonuses and discounts

6,539,195

8,647,771

76

Operating expenses

199,362,100

198,477,965

100

- acquisition costs

128,032,778

127,960,690

100

- other operating expenses

71,329,322

70,517,275

101

Expenses from financial assets and liabilities

114,386,924

100,957,942

113

Expenses from financial assets and liabilities in associates

1,417,909

2,104,247

67

- loss on equity investments in associates and joint ventures accounted for using the equity method

986,250

2,104,247

47

- interest expense

0

0

0

- fair value losses

0

0

0

- realised loss on disposals

418,604

0

0

- permanent impairment of financial assets

1

0

0

- other expenses from financial assets and liabilities

13,054

0

0

Expenses from other financial assets and liabilities

79,179,913

98,177,882

81

- interest expense

3,394,926

3,576,326

95

- fair value losses

23,209,947

18,768,643

124

- realised loss on disposals

15,744,740

24,081,742

65

- permanent impairment of financial assets

28,144,000

43,652,275

64

- other expenses from financial assets and liabilities

8,686,300

8,098,896

107

Net unrealised losses on unit-linked life insurance assets

33,789,102

675,813

0

Other insurance expenses

23,683,481

42,829,908

55

Other expenses

87,026,356

83,803,046

104

Profit/loss before tax

83,641,061

89,671,412

93

Income tax expense

-13,790,058

-16,490,349

84

Net profit for the accounting period

69,851,003

73,181,063

95

Net profit/loss attributable to the controlling company

69,541,096

72,512,985

96

Net profit/loss attributable to non-controlling interest holders

309,906

668,078

46

Financial result ratios

Financial result ratios

2013

2012

2011

Claims ratio

61.7%

60.9%

61.0%

Expense ratio

29.3%

28.8%

29.2%

Combined ratio

91.0%

89.6%

90.1%

Operating expenses of insurance business in gross written premium

25.6%

24.6%

23.7%

Gross written premium per company employee* (EUR)

204,330

212,353

226,147

*Only the employees of the insurance and the reinsurance companies of the Triglav Group are included.

This page uses cookies, so you can get a better user experience. You can read details about how they are used on this link. Do you agree with their use?