Zavarovalnica Triglav d.d.

A reﬂection

of tomorrow

Marija Judež, 2022 Young Hope

The Triglav Group and

Zavarovalnica Triglav d.d.

Annual Report 2022

The actions of today will determine our tomorrow.

The Triglav Group's business development is guided by its mission and vision.

The Group's mission and vision are pursued for all young hopes, all its clients, employees and shareholders,

as well as for existing and future partners and communities.

We build

a safer future.

We set standards of

outstanding client

experience –

anytime, anyplace.

Insurance

Premium growth was recorded in

all three insurance segments and in

all insurance markets.

EUR

1,479.6

million

↑

+9%

Gross written insurance, coinsurance and reinsurance

premiums

See Section 7. Operations of the Triglav

Group and Zavarovalnica Triglav for

more information

Asset management

Our goal is to achieve a high credit

rating for the entire investment

portfolio, focusing on its safety

and liquidity.

90.4%

Bond investments in the investment grade with at

least »BBB« credit rating

See Section 7.9 Investment structure

of the Triglav Group and Zavarovalnica

Triglav for more information

A client-centric approach

We offer a ﬂexible range of modern

insurance and investment products

and services, which are provided

with existing and newly established

business ecosystems.

↑

+4 points

Client satisfaction at Triglav Group

(the NPS index)

See Section 11. Development activities

for more information

Sustainable development

Environmental, social and governance (ESG)

aspects are integrated into our operations.

We are promoting the transition to a more

sustainable society and are reducing our

impact on climate change.

10%

The share of social impact, green and sustainable bonds in

debt securities

See Section 12. Sustainable development

at the Triglav Group for more information

In 2022, the Triglav Group consolidated its position as the leading insurance and ﬁnancial group in the Adria region as well as one of the leaders in South East Europe.

On cover

The multi-talented student

Marija Judež

knows

what she wants and

steadfastly pursues her

goals. The young winner of

international Olympiads

in experimental science,

astronomy and astrophysics

is determined to become

a scientist. She wants to

devote her exceptional

talent to astronomy and

physics. She is unstoppable

in her desire to learn more

about the expansion of

the universe and galaxies,

but also in paving the way

for other young women

and female scientists and

anyone who wants to push

boundaries.

More about the Young

Hopes project and its

anniversary

Seeing through

the eyes of clients

We aim to develop an offer tailored to the needs and expectations

of our clients. We were among the ﬁrst in the region to launch the

Report & Repair service. This service means that clients no longer

have to deal with the time-consuming and often demanding

process of repairing the damage to their property.

Franc Branko Florjančič

, Director of Assistance Claims

Department, points out that Triglav's focus continues to be on

its comprehensive repair service. It brought about a shift in the

range of services provided and their organisation, in which they

fully cater to the needs of clients. »We expanded our cooperation

with assistance service providers and developed partnerships in

the Company's business ecosystem based on a common approach.

Client feedback and exceptional reviews of their experience serve

as an excellent basis for the expansion of personalised repair

services and the further development of the platform.«

A simple solution,

a richer experience,

a better relationship

See Section

Development activities for

more information

In the event of damage

to property, clients can

choose us to handle the

repairs instead of opting

for direct payment of

compensation.

We work with a network

of local partners involved

in the Triglav Dom (Home)

business ecosystem,

handle the procedures and

provide comprehensive

engineering services.

A welcome solution

In the cosy home of the Vegan family, you will

feel relaxed from the very ﬁrst minute you enter.

The three generations of family members and

the loyal guardian dog Flash have created a lively

atmosphere in their house.

Mr Bogdan knows very well that even a minor incident

can lead to signiﬁcant damage to the property,

which was what happened when there was a leak in

the bathroom plumbing due to a damaged wall-hung

toilet bowl. Thanks to adequate insurance coverage,

the insurance company took care of everything,

ﬁnding the materials and a contractor to replace

the tiles, ﬁxtures and cabinets. Zavarovalnica Triglav

effectively repaired the damage, supervised the

quality of repairs and covered all the costs.

Opportunities and rules

are the same for everyone

Aleksandra Česen

, our colleague at Zavarovalnica

Triglav, is also an international football referee.

She has loved this most popular team sport since

her youth. Propelled by her passion, effort and

skill, she established herself in a traditionally

male-dominated ﬁeld. She played on her local

team for many years, then in the national team,

after which she became a junior team coach.

Aleksandra is proof to younger generations that

they can achieve anything they set their mind to.

As a colleague, she inspires us in spreading the

culture of equality and diversity.

54.7%

of all Triglav Group

employees are female.

≈

payment

In all employee

categories, activities

and countries where

the Group operates,

the basic salary of men

and women is equal.

The name of

the ﬁrst women's

football league

in Slovenia was

renamed to

Triglav Zdravje

Women's Football

League

in 2022.

Contents

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Keep updated about our activities

Detailed information for investors and existing shareholders

is available at:

Information for shareholders:

Zavarovalnica Triglav, d.d., Ljubljana,

Miklošičeva cesta 19, 1000 Ljubljana,

Helena Ulaga Kitek,

Head of Investor Relations

T: ++386 (1) 47 47 331

E: investor.relations@triglav.si

Contents

The Triglav Group and Zavarovalnica Triglav d.d.

Audited Annual Report of

the Triglav Group and

Zavarovalnica Triglav d.d. for

the Year Ended 31 December 2022

About the report

The Annual Report of the Triglav Group and

Zavarovalnica Triglav d.d. for 2022 is integrated

and

describes the balance and plans as at

31 December 2022. When compiling the report,

the

aim was to present a comprehensive overview

the main financial and non-financial (ESG)

aspects,

results and plans.

When reporting on sustainable development,

GRI and SASB standards as well as UN Sustainable

Development Goals (SDGs) were used. Progress in

the field of climate change is disclosed in

accordance

with the CDP methodology

You can read more about the report in

Section

4 About the report

Business Report

Address by the President of the Management Board

Triglav Group and Zavarovalnica Triglav in 2022

Report of the Supervisory Board

Strategy and plans of the Triglav Group

Corporate Governance Statement

The share and shareholders of Zavarovalnica Triglav

Operations of the Triglav Group and Zavarovalnica Triglav

Financial result of the Triglav Group and Zavarovalnica Triglav

Financial position of the Triglav Group and Zavarovalnica Triglav

10.

Cash ﬂow statement

11. Development activities

Non-ﬁnancial statement

101

12.

Sustainable development at the Triglav Group

103

13.

Information on the Triglav Group as at 31 December 2022

135

14. Business network of the Triglav Group

140

15. Performance indicators of Zavarovalnica Triglav

143

Risk Management

Risk management system

160

Capital position

165

Risk proﬁle

167

Accounting Report

Statement of management's responsibilities

193

Independent auditor's report

194

Financial statements

198

Notes to the ﬁnancial statements

204

Notes to the statement of ﬁnancial position

242

Glossary of insurance terms

320

GRI, SASB and SDG Content Index

323

2022 Key Highlights

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2022 Key

Highlights

We consistently pursued

our planned strategic

guidelines and goals.

Total revenues in EUR million

Combined ratio of the Triglav Group

Consolidated gross written premium of

the Triglav Group by segment

Net proﬁt before tax in EUR million

Gross written premium for insurance, coinsurance

and reinsurance contracts in EUR million

Non-life

Health

Life and pension

2020

2021

2022

65.4%

18.7%

18.5%

18.0%

15.9%

14.7%

13.8%

68.2%

66.9%

Triglav Group

Zavarovalnica Triglav

2022

2021

2022 plan

719.3

1,233.8

1,479.6

more than

1,400

794.4

868.9

2020

1,353.0

Triglav Group

Zavarovalnica Triglav

2020

2021

2022

71.1

90.9

134.5

85.7

140.4

2022 plan

120–130

132.6

Claims ratio

Expense ratio

2020

2021

2022

59.4%

28.7%

61.4%

27.5%

63.1%

28.1%

2022 plan

below 93%

91.2%

88.9%

88.1%

Triglav Group

Zavarovalnica Triglav

2020

2021

2022

765.2

1,318.4

848.6

938.4

1,455.1

1,599.3

2022

Key

Highlights

2022 Key Highlights

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

1.86

tCO

Carbon footprint

per employee

2021: 2.09 tCO2e

88.1%

Combined ratio of

the Triglav Group

2021: 88.9%

»A«

Credit rating

with a stable

medium-term

outlook

2021: A

63.3%

Share of electricity

consumption from

renewable sources in

Triglav Group

2021: 60.1%

13.1%

Return on equity of

the Triglav Group

2021: 12.5%

200%

Capital adequacy of

the Triglav Group

2021: 219%

5,306

Number of employees in

Triglav Group

2021: 5,264

EUR

832.2

million

Gross claims

2021: EUR 736.6 million

EUR

3.7

Dividend

per share

2021: 1.7 EUR

419

Number of

Triglav Group’s

suppliers checked

against ESG criteria

2021: 375

Satisfaction of

Triglav Group’s clients

(NPS index)

2021: 73

EUR

4.1

billion

Balance sheet total of

the Triglav Group

2021: EUR 4.4 billion

EUR

20.8

million

Written premium from

products promoting social

and environmental beneﬁts

2021: 16.3 mio. EUR

41.2%

Women at ﬁrst and second

management levels under

the management board

2021: 42.0%

EUR

3,271.2

million

investment portfolio of

the Triglav Group

2021: EUR 3,668.5 million

Address by the President of the Management Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Address by

the President of

the Management

Board

Dear

Shareholders

and Readers,

In 2022, we made important

development steps and achieved good

results that conﬁrm both the robustness

of our business model and the ﬂexibility

and success of our strategy. We achieved

this despite a challenging environment

in which we were faced with the effects

of the broader geopolitical situation,

high inﬂation growth, an unfavourable

situation in international ﬁnancial

markets and the consequences of the

COVID-19 pandemic. The Triglav Group was again assigned a high

“A” credit rating by the credit rating agencies S&P Global Ratings

and AM Best, conﬁrming its sound performance.

The Group generated EUR 134.5 million in consolidated proﬁt

before tax, up by 1% over the previous year. A net proﬁt of

EUR 110.2 million vas 2% lower compared to last year. The results

achieved are above those planned and are the result of good

performance and one-off events, especially the partial release

of claims provisions from previous years, which mitigated the

growth of claims and expenses. In estimating claims provisions,

the trends of the best estimate introduced by the new IFRS 17

accounting standard were followed, bringing their amount

closer to the estimated value according to IFRS 17. Gains on the

disposal of investment property and some equity investments also

had a positive impact, whereas total return on the investment

portfolio was negative as a result of the unfavourable situation

in the ﬁnancial markets. This, together with the increased

dividend payment, reduced equity by 19% to EUR 752.8 million

and increased net return on equity to 13.1%. Due to the

aforementioned reasons and inﬂation, the Group’s capital

adequacy decreased over the previous year, remaining around the

lower end of its target range.

GRI 2-22

Address by the President of the Management Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Insurance and asset management

Total revenue rose by 10% to EUR 1,599.3 million, while gross written premium increased by 9% to

EUR 1,479.6 million. Premium growth was recorded in all three insurance segments and all our markets.

In Slovenia, it reached 7% and was consistent with market trends, while in other markets of the Adria

region it stood at 12%. Premium written in the international market based on the principle of free

movement of services and inward reinsurance premium grew by 17%. The non-life insurance premium

increased by 12%, life and pension insurance premium by 6% and health insurance premium by 3%.

Backed by a larger insurance portfolio, more dynamic activity of households and businesses, and the

inﬂationary rise in the prices of materials and services, gross claims paid grew by 13% to EUR 832.2 million.

Major CAT events also contributed to this. Their estimated value of EUR 32.1 million was more than

20% above the ﬁve-year average. The Triglav Group’s combined ratio was favourable, standing at 88.1%,

primarily as a result of an improved claims ratio due to the release of claims provisions.

The unfavourable situation in the ﬁnancial markets characterised by interest rate hikes and share

price falls resulted in an 11% decrease in the investment portfolio, the value of which at the end of the

year stood at EUR 3,271.2 million. In accordance with investment policies, its conservative structure

and quality did not change signiﬁcantly. Net inﬂows were recorded in the management of clients’

assets in mutual funds and discretionary mandates, but assets nevertheless decreased by 10% to

EUR 1,389.5 million due to lower prices on the ﬁnancial markets. By holding a 31.3% market share,

the Group is one of the leading managers of mutual fund assets in Slovenia.

Implementation of the dividend policy by paying out a higher dividend

We strive to make the ZVTG share a proﬁtable, safe and stable investment for investors. The ZVTG

share was also affected by the situation in the stock markets, its price falling by 6% (the Ljubljana Stock

Exchange SBITOP index dropped by 17%). Its total return was 4.5%, of which the dividend yield was

10.7%. After two years marked by the pandemic, a higher dividend of EUR 3.70 gross per share was paid

in 2022. In addition to the level of the Group’s available capital, the uniqueness or exceptionality of

some segments of the Group’s operations in the past two years was taken into account.

Strategic focus on growth and development

We ﬁrmly believe that by continuing the Group’s digital transformation and developing service-oriented

business ecosystems, we will achieve our main strategic objective – an outstanding and uniform client

experience across all channels, all processes, all products and companies.

Our transformation is based on the uniﬁed management of client experience and digital business.

To this end, we are continuing with the digitalisation of our assistance, sales and claims procedures and

the development of a single platform for client communication and service. In addition, several internal

processes have already been equipped with tools for robotic process automation. The ecosystems in key

areas of health, ﬁnancial services, mobility, living and pets are linked in both the single platform and

the Triglav komplet bonus system. We are expanding not only the range of our partners, with whom we

share common business principles and the goal of achieving high client satisfaction, but also the range

of assistance and related services.

According to measurements, clients have once again recognised our efforts and have expressed their

satisfaction. The NPS indicator, which measures the probability of recommending us to others, has

reached 77. Annual in-house employee satisfaction surveys show that our achievements are the result

of a high level of employee engagement, cohesion, teamwork and commitment. On behalf of the

Management Board, I would like to thank all employees for their dedicated work.

Sustainable development (ESG) deﬁnes our operations

We are committed to achieving our ambitions in sustainable development, which are a key part of our

strategy. The range of products and services of both our core activities is being expanded with those

that promote social and environmental beneﬁts. The share of sustainable investments in the bond

portfolio was increased. The Group’s Scope 1 and Scope 2 carbon footprint decreased by 13%. We aim

to follow high corporate governance standards in our operations. We nurture a culture of diversity

and inclusion, recognising the opportunities it brings. Women represent 55% of all employees, 45% of

senior managers and 24% of employees who lead or supervise our companies. Furthermore, we are

strongly involved in socially and environmentally responsible projects, partnerships and donations.

We participate in the international initiatives of UN PSI, UNEP FI and the PCAF partnership, which

implement the principles of sustainable development, and we report in accordance with the GRI, SASB

sustainability standards and according to the CDP climate change questionnaire.

In a year full of challenges, we worked even harder to

build a safer future

for our clients, employees

and you, our shareholders,

which will be our guiding principle also in the future. On behalf of the

Management Board and all employees of the Triglav Group, I thank you for your trust.

Andrej Slapar

President of the Management Board of

Zavarovalnica Triglav

Triglav Group and Zavarovalnica Triglav in 2022

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Triglav Group and

Zavarovalnica Triglav

in 2022



The Triglav Group operated proﬁtably and

successfully in all markets, with the generated

proﬁt being affected by one-off events.



It consistently carried out its strategic activities

for further growth and development and

achieved its sustainable ambitions.



It maintained its ﬁnancial strength with capital

adequacy around the lower end of its target

range and was again assigned an “A” credit rating

with a stable medium-term outlook.



The Group is the leader in insurance in both the

Adria region, where it increased its market share,

and in Slovenia, the most developed insurance

market in this region.



There were no signiﬁcant

changes in the Group’s structure,

its markets or activities.

2.1 Financial highlights of the Triglav Group

2.2 Financial highlights of Zavarovalnica Triglav

in EUR million

2022

2021

2020

Index

2022/2021

2021/2020

Total revenue

1,599.3

1,455.1

1,318.4

110

Gross written premium from insurance, coinsurance and reinsurance contracts

1,479.6

1,353.0

1,233.8

109

110

Net premium income

1,189.9

1,119.8

1,066.8

106

105

Gross claims paid

832.2

736.6

697.4

113

106

Net claims incurred

746.7

715.0

683.6

104

105

Gross operating expenses

374.9

333.4

306.7

112

109

Proﬁt before tax

134.5

132.6

90.9

101

146

Net proﬁt

110.2

113.0

73.7

153

Net proﬁt attributable to the controlling company

110.5

112.8

73.5

153

Combined ratio

88.1%

88.9%

91.2%

Insurance technical provision as at 31 December

3,100.0

3,198.7

3,033.2

105

Equity as at 31 December

752.8

933.0

870.2

107

Equity attributable to the controlling company as at 31 December

749.4

930.5

867.6

107

Return on equity

13.1%

12.5%

8.9%

104

141

Return on eqiuty attributable to the controlling company

13.2%

12.5%

8.9%

105

141

Book value per share (in EUR)

32.96

40.93

38.16

107

Net earnings per share (in EUR)

4.85

4.97

3.24

153

Number of employees as at 31 December

5,306

5,264

5,316

101

in EUR million

2022

2021

2020

Index

2022/2021

2021/2020

Total revenues

938.4

848.6

765.2

111

Gross written premium from insurance, coinsurance and reinsurance contracts

868.9

794.4

719.3

109

110

Net premium income

627.7

598.8

583.9

105

103

Gross claims paid

452.5

408.9

408.3

111

100

Net claims incurred

346.4

365.1

375.3

Gross operating expenses

221.4

195.0

180.0

113

108

Proﬁt before tax

140.4

85.7

71.1

164

121

Net proﬁt

120.5

73.4

58.0

164

127

Combined ratio

77.2%

81.8%

86.1%

Insurance technical provisions as at 31 December

2,173.4

2,280.5

2,199.0

104

Equity as at 31 December

552.1

675.2

644.0

105

Return on equity

19.6%

11.1%

9.5%

176

117

Book value per share (in EUR)

24.28

29.70

28.33

105

Net earnings per share (in EUR)

5.30

3.23

2.55

164

127

Number of employees as at 31 December

2,243

2,246

2,244

100

The calculation of

indicators and

the chosen terms are

explained in

the glossary enclosed

to the Annual Report.

See page 320.

GRI 2-6

Triglav Group and Zavarovalnica Triglav in 2022

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

For additional

information

about this report

please contact:

Zavarovalnica Triglav d.d.,

Ljubljana

Miklošičeva cesta 19,

1000 Ljubljana

Blaž Kmetec

, Executive Director

of Finance and Controlling

Email:

blaz.kmetec@triglav.si

2.3 Environmental, social and governance (ESG) aspects of the Triglav Group's operations

2022

2021

2020

Index

2022/2021

2021/2020

1. Environmental aspects

Carbon footprint

(tonnes of CO

equivalent)*

9,857

11,299

10,602

107

Scope 1 and 2 carbon footprint per employee (tonnes of CO

equivalent)*

1.86

2.09

1.95

107

Electricity consumption (MWh)

13,354

14,087

12,841

110

Share of electricity consumption from renewable sources (%)

63.3

60.1

2.7

105

2,234

Total quantity of waste at the Triglav Group per employee (kg)

116

124

125

Average daily consumption of ofﬁce paper per employee**

Written premium from products promoting social and environmental beneﬁts (EUR million)

20.8

16.3

13.5

127

121

Assets managed by the Triglav Zeleni Fund (EUR million)

49.2

41.8

24.6

118

170

Investments in social impact, green and sustainable bonds (in EUR million)

222.9

204.5

104.3

109

196

2. Social aspects

Employee satisfaction (ORVI)

4.00

3.99

100

Average employee age

44.80

44.67

44.38

100

101

Women employees to total employees ratio (%)

54.7

53.9

53.5

102

101

Proportion of women at ﬁrst and second management levels under the management board (%)

41.2

42.0

42.1

100

Employee turnover (number of leavers/average number of employees; %)

11.6

13.2

11.7

113

Average number of training hours per employee

107

130

Lost time incident rate – LTIR (number of work-related incidents/total number of hours of all employees x 200,000)

0.37

0.24

0.21

155

117

Client satisfaction of Triglav Group (NPS)***

106

Number of insurance products and services sold online

105

Number of insurance products promoting prevention

102

Proportion of employees allowed to work from home (%)

n.a.

119

Number of suppliers checked against ESG criteria

419

375

311

112

121

Investments into the community (prevention, donations, sponsorships) (EUR million)

10.2

8.8

8.0

116

111

3. Governance aspects

Proportion of women in the management board/supervisory board in parent company (%)

25.0/0

33.3/0

Proportion of women at the ﬁrst management level under the management board (%)

45.1

45.3

45.8

100

Proportion of women in management and supervisory bodies (%)

23.6

20.9

113

101

Average age of Zavarovalnica Triglav Management Board members

48.5

48.7

47.7

100

102

Independence of Zavarovalnica Triglav Supervisory Board members, shareholder representatives (% of members)

100

President of the Management Board salary to the average employee salary ratio (factor x)****

100

Term of ofﬁce of the current President of the Management Board (years)

113

114

Policies adopted: equal opportunities policy, anti-corruption policy, employee protection/whistleblower protection policy

YES

Fair business practices (number of fraud cases investigated)

1,651

1,517

1,134

109

134

Internationally renowned audit ﬁrm (Big 4)

YES

Period of cooperation with the existing auditor (years)

133

150

Investor relations when publishing results

YES

Economic value generated (EUR million)

1,403.1

1,378.8

1,274.9

102

108

Economic value distributed (EUR million)

1,351.1

1,281.8

1,179.2

105

109

Economic value retained (EUR million)

52.0

96.9

95.7

101

Includes Scope 1 and 2 emissions under the location-based method. A more detailed calculation of Scope 1, 2 and 3 GHG emissions is shown in Section

12.3.2

Includes A4 paper consumption for internal purposes.

***

NPS shows the share of promoters who would recommend the Company to their acquaintances, friends and others based on experience.

**** Pursuant to the ZPPOGD, the base salary of the President of the Management Board is determined in relation to the average gross salary in the Group members

which are headquartered in Slovenia and whose data are included in the consolidated annual report in the previous ﬁnancial year.

GRI 2-21

GRI 2-3

Triglav Group and Zavarovalnica Triglav in 2022

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.4 About the report

The Annual Report of the Triglav Group and

Zavarovalnica Triglav was compiled in accordance

with

International Financial Reporting Standards

(IFRS),

the Companies Act

(ZGD-1J) and the

Insurance Act

(ZZavar-1).

The Report is integrated and equally includes

sustainability (ESG) disclosures. In line with

the strategic ambitions relating to sustainable

development, the quality and scope of reporting

are regularly improved. For non-ﬁnancial

reporting,

GRI

standards (Global Reporting

Initiative) and their speciﬁc guidelines for the

ﬁnancial sector as well as

SASB

standards

(Sustainability Accounting Standards Board)

are used. The range of topics and disclosures

used is presented in the GRI and SASB content

index at the end of the Annual Report and the

materiality matrix. Progress in environmental,

social and governance (ESG) areas is presented

mainly in Section

Sustainable development at

the Triglav Group

, but it is also incorporated

in other sections, as evident from the GRI and

SASB references. The Company has disclosed

proportions of exposure to taxonomy-eligible

and taxonomy non-eligible economic activities

according to the EU Taxonomy Regulation in

total assets and non-life insurance activities

since 2021. The proportions presented partially

comply with Commission Delegated Regulation

(EU) 2021/2178 of 6 July 2021 supplementing

Regulation (EU) 2020/852.

The content of the annual report and the data on

the Group’s sustainable operations are collected

by the competent departments of the Company,

which is responsible for reporting in cooperation

with the respective departments at subsidiaries.

Reporting refers to a particular ﬁnancial and

calendar year.

Financial reporting for the Group comprises

all companies included in the consolidated

High

Impact on the ability to implement the Triglav Group strategy

Very high

Important

Important for stakeholders

Very important

Quality insurance and financial

products and assistance services

Long-term stability and

profitability of operations

Care for employees’

health and safety

Fair and transparent

business practices

Business continuity and

preparedness for extreme events

Cyber security and

personal data protection

Client-tailored ways of

doing business and products

Culture of cooperation

and openness

Simple, innovative and

digitalised products and services

Adjustment to

demographic changes

Responsibility to suppliers and

cooperation with local partners

Equal opportunities for employee

development and remuneration

Reduction of the carbon

footprint of own activities

Products and services responsible

towards society and nature

Donations to healthcare, firefighters,

paramedics, traffic safety

Promotion of scientific research

to mitigate climate change

Partnerships in sports, culture,

support for young talents

Attracting

qualified employees

↗

Importance has increased

↙

Importance has decreased

Importance remained unchanged

Governance

Social

Environment

Environmental

protection

Responsibility

to employees

Client focus

Support and

development of

partnerships

Stable, safe

and profitable

operations

▪

Products and services responsible towards society and nature

▪

Reduction of the carbon footprint of own activities

▪

Promotion of scientific research to mitigate climate change

▪

Care for employees’ health and safety

▪

Culture of cooperation and openness

▪

Equal opportunities for employee development and remuneration

▪

Attracting qualified employees

▪

Quality insurance and financial products and assistance services

▪

Client-tailored ways of doing business and products

▪

Simple, innovative and digitalised products and services

▪

Adjustment to demographic changes

▪

Donations to healthcare, firefighters, paramedics, traffic safety

▪

Partnerships in sports, culture, support for young talents

▪

Responsibility to suppliers and cooperation with local partners

▪

Long-term stability and profitability of operations

▪

Fair and transparent business practices

▪

Comprehensive risk management

▪

Cyber security and personal data protection

▪

Business continuity and preparedness for extreme events

Comprehensive

risk management

Material ESG topics of the Triglav Group by area

ﬁnancial statements (See Section

2.1.4 of the Accounting Report

for more

information). With the gradual integration of ESG aspects into the Group’s

operations, the scope of companies included in ESG disclosures in accordance

with GRI and SASB is also increasing. The notes to individual disclosures

indicate which companies are included. The calculation methodology for

individual indicators is described in the text and the notes.

Key stakeholders are involved in identifying material topics and thus non-

ﬁnancial disclosures. The identiﬁed main sustainability topics are presented

in an updated double materiality matrix, and are revised based on regular

surveys on the impact on stakeholders, their interests and satisfaction

factors. A set of material topics and their descriptions was deﬁned in 2021

through an extensive internal process led by the Compliance and Sustainable

Development Committee and an external process (two quantitative surveys

among employees and individual clients and a qualitative survey among

NGOs, local communities and corporate clients), in which nearly 3,000

representatives of stakeholder groups participated.

In 2022, which was marked by major changes in the business environment,

the materiality assessment was reviewed and updated based on

a quantitative survey conducted among more than 600 clients and other

respondents from Slovenia, a study of regulatory trends in the EU and

information obtained from domestic and foreign investors.

More about

stakeholders and their engagement is reported in Section

12. Sustainable

development at the Triglav Group

GRI 2-2, 2-3, 2-4, 2-14, 3-1, 3-2

GRI 3-2

Materiality matrix of ESG topics for stakeholders and the Triglav Group

2.5

Signiﬁcant

events

in 2022

The term of ofﬁce of

the Management Board

members Barbara Smolnikar

and David Benedek ended.

Blaž Jakič was appointed a

new Management Board

member for a ﬁve-year term

of ofﬁce. The decision entered

into force upon the fulﬁlment

of the conditions precedent,

including obtaining the authorisation of the Slovenian

Insurance Supervision Agency to perform the function of a

management board member of 2 March 2023 (see Section

5.11

Events after the reporting period in the Accounting Report

for

more information). On 9 December 2022, the Supervisory Board

members Branko Bračko and Peter Kavčič notiﬁed the Company

of their resignation. Their term of ofﬁce will end on the date of

the regular annual General Meeting of Shareholders in 2023,

but not later than on 30 June 2023.

See Section

5.3.3 Supervisory Board

for more information.

Zavarovalnica Triglav

became a signatory to the

United Nations Principles

for Sustainable Insurance

(UN PSI) in February 2021,

and thereby a member of

the global community of

banks, insurers and investors

joining the United Nations

Environment Programme

Finance Initiative (UNEP FI). It also joined the Partnership

for Carbon Accounting Financials (PCAF). In 2022, the

Company reported on climate change impacts to the

CDP international non-proﬁt organisation for the second

time in a row.

See Section

12.1 Implementation of strategic guidelines

and sustainable development goals of the Triglav Group

and Zavarovalnica Triglav

for more information.

The credit rating agencies

S&P Global Ratings and AM

Best again conﬁrmed the

Group’s “A” credit rating

with a stable medium-term

outlook.

See Section

6.6 Credit rating

of the Triglav Group and

Zavarovalnica Triglav

for

more information.

At the May General

Meeting of Shareholders,

the shareholders adopted

the resolution proposed

by the Management

Board and the Supervisory

Board to pay a dividend of

EUR 3.70 goss per share or

EUR 84.1 million in total,

which accounts for 74% of

Zavarovalnica Triglav’s consolidated net proﬁt for 2021.

See Section

6.4 Dividends and dividend policy

for more

information.

Despite the challenging

situation in the business

environment characterised

by a geopolitical situation,

high inﬂation growth,

major CAT events and an

unfavourable situation

in ﬁnancial markets,

the Triglav Group operated

proﬁtably and successfully,

with the generated proﬁt being affected by one-off events.

See Section

8. Financial result of the Triglav Group and

Zavarovalnica Triglav

for more information.

Good

business

results

Dividend

payment

Changes in

the Management

Board and

the Supervisory

Board of

Zavarovalnica

Triglav

Sustainable

development

at the

Triglav Group

The

high “A”

credit rating

afﬁrmed

2.6

Financial calendar 2023

The general public is informed

about the dates of key

announcements (including the

time of announcements when

publishing ﬁnancial results) and

about any amendments to the

planned time of announcement

in the Ljubljana Stock

Exchange SEOnet information

system (seonet.ljse.si) and on

Zavarovalnica Triglav’s corporate

website (www.triglav.eu).

Calendar of ﬁnancial announcements for 2023

Date and time of

announcement*

Type of announcement

Quiet period**

Friday, 3 March 2023,

8:30

Preliminary key ﬁgures

for 2022

From Friday,

10 February 2023

Friday, 31 March 2023,

8:30

Audited annual report

for 2022

From Friday,

17 March 2023

Friday, 21 April 2023

Call notice of the General Meeting

of Shareholders to decide on the

distribution of accumulated proﬁt

Wednesday, 31 May

2023, 8:30

January–March 2023 interim

ﬁnancial report

From Wednesday,

17 May 2023

Tuesday, 6 June 2023

General Meeting of Shareholders

and announcement of its

resolutions

Thursday, 31 August

2023, 8:30

January–June 2023 interim

ﬁnancial report

From Thursday,

17 August 2023

Thursday, 30

November 2023, 8:30

January–September 2023 interim

ﬁnancial report

From Thursday,

16 November 2023

Announcement dates as planned. The actual dates may differ from the above-stated planned dates.

** The quiet period denotes a period preceding the announcement of a ﬁnancial report, during which

Zavarovalnica Triglav does not disclose any information on current operations to the public.

Triglav Group and Zavarovalnica Triglav in 2022

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.7 Activities, markets

and position of the

Triglav Group

The Triglav Group is the leading insurance

and ﬁnancial group in Slovenia and the Adria

region as well as one of the leading groups in

South-East Europe. The Group operates in seven

markets in six countries, where Group members

operate. Furthermore, it operates in the wider

international environment through partnerships

with foreign insurance brokerage and agency

companies as well as reinsurers.

Strategic activities:

Slovenia

place

↑

38.9%

market share*

+7%

written premium**

84.5%

combined ratio

Croatia

place

5.6%

market share*

+9%

written premium**

103.9%

combined ratio

Serbia

place

7.3%

market share*

+15%

written premium**

99.7%

combined ratio

Bosnia and

Herzegovina

place

↑

9.4%

market share*

+15%

written premium**

94.3%

combined ratio

North

Macedonia

place

↑

14.7%

market share*

+23%

written premium**

101.0%

combined ratio

Insurance



Non-life



Health



Life



Pension



Reinsurance

Asset management



Own insurance portfolio

(asset backing liabilities

and backing funds)



Mutual funds and

individual asset

management



Pension funds

The data show the market share of the Triglav Group by an individual market. Data shown for Serbia is for January–September 2022.

The data show the growth of the Triglav Group’s gross written premium by an individual market.

Montenegro

place

↓

37.8%

market share*

+6%

written premium**

89.9%

combined ratio

GRI 2-1, 2-6

Triglav Group and Zavarovalnica Triglav in 2022

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Non-life

Health

Life

Pensions

Reinsurance

Mutual funds

and discretionary

mandate

assets

Own

insurance

portfolio

Pension

funds

ESG ambitions

By pursuing sustainability

goals, the Triglav Group is

creating a long-term stable

basis for its profitable and

safe operations, promoting

the transition to a sustain-

able society and reducing its

impact on climate change.

Triglav Group’s

strategic activities

Strategic guideliness

Resources used to create value

Economic and governance

Funds for the Group’s business operations come

from a solid capital base, written premiums and funds

from the Group’s shareholders and investors.

The Group comprehensively identifies and manages

risks and opportunities. It adheres to high standards of

corporate governance.

4. Triglav Group strategy and plans



5. Corporate governance statement



7. The Triglav Group’s business operations



Risk management



Human resources

The Group’s employees bring together a wide range of

expertise and talents, which serve as the basis for

effective business operations and the implementation

of the Group’s development strategy.

12.4.2 Responsibility to employees



Social

In order to achieve its development objectives, the

Group improves its knowledge of key stakeholders’

needs, strengthening their trust and satisfaction. The

value created by the Group stems from good mutual

relationships.

12.4. Social aspects



Environmental

The natural resources required for the Group’s operations are

used efficiently. In accordance with the adopted strategic

ambitions, the Group incorporates sustainable development

principles into its internal processes. It develops financial

products and services that contribute to the resilience of the

economy and society to climate change.

12.3 Environmental aspect



Impacts of the Group’s operations

Shareholders/investors

With stable and development-oriented operations,

the Group increases the value of its assets. By pursuing

a sustainable and attractive dividend policy, the Group

strives to make the ZVTG share a profitable, safe and

stable investment.

6. The share and shareholders of Zavarovalnica Triglav



Employees

The Group develops the skills and talents of its

employees, provides them with a stimulating and

safe working environment and rewards them fairly.

12.4.2 Responsibility to employees



Clients/policyholders

By offering quality insurance and financial products and

related services, the Group responds to new and existing

client needs and ensures their financial security.

12.4.1 Responsibility to clients



7.6 Gross claims paid



The local and wider community

With investments, tax payments, accessible services and

locally oriented and responsible procurement, the Group

supports economic development and the social

environment, as well as efforts for a green transition.

It strengthens prevention through training, sponsorships

and donations, thereby reducing security risks.

12.4.3 Responsibility to the community



12.4.4 Responsibility to suppliers



12.3 Environmental aspect



Partners

The Group develops new business models and

innovative practices. As a reliable, responsible and

trustworthy partner, it operates ethically and in

compliance with the law, cooperating with state bodies

and regulators.

The Group contributes to the growth of

the companies and organisations it collaborates with.

11. Development activities



12.4. Social aspects



Dynamic challenges in the environment:

Contribution to key SDGs



Competition



New client needs



Technological development



Financial and macroeconomic factors



Development of regulatory frameworks



Environmental change



Demographic and social change



Economic and political factors

Operating safely and profitably

An outstanding client experience

Digital transformation

The development of service-oriented business models

Development of organisational structure



Insurance



Asset management

The Triglav Group

single platform

Integration of ESG aspects

into products and services

Effective corporate

governance

Research and development

of products and services

Responsibility to

the stakeholders

Specialised

partners

Omni-channel

accessibility

Integration of ESG aspects into the

Triglav Group’s business processes

Value creation

process

2.7.1 The Triglav Group’s value creation model

Triglav Group and Zavarovalnica Triglav in 2022

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The Triglav Group members directly involved in or supporting the Group’s two strategic activities

Insurance

Asset management

Other

Slovenia



Zavarovalnica Triglav d.d.



Pozavarovalnica Triglav Re d.d.



Triglav, Zdravstvena zavarovalnica d.d.



Triglav, pokojninska družba d.d.



Triglav Skladi d.o.o.



Triglav, Upravljanje nepremičnin d.o.o.



Trigal d.o.o



Triglav INT d.o.o.



Triglav Svetovanje d.o.o.



Triglavko d.o.o.



Diagnostični center Bled d.o.o.



Triglav zdravje asistenca d.o.o.

Croatia



Triglav Osiguranje d.d., Zagreb



Triglav Savjetovanje d.o.o.

Serbia



Triglav Osiguranje a.d.o., Belgrade



Triglav Savetovanje d.o.o.

Montenegro



Lovćen Osiguranje a.d., Podgorica



Lovćen životna osiguranja a.d., Podgorica



Lovćen auto d.o.o.

Bosnia and Herzegovina



Triglav Osiguranje d.d., Sarajevo



Triglav Osiguranje a.d., Banja Luka



Triglav Fondovi d.o.o.



Društvo za upravljanje Evropskim dobrovoljnim

penzijskim fondom a.d, Banja Luka



Triglav Savjetovanje d.o.o.



Autocentar BH d.o.o.

North Macedonia



Triglav Osiguruvanje a.d., Skopje



Triglav Osiguruvanje Život a.d., Skopje



Triglav penzisko društvo a.d., Skopje

2.7.2 Insurance

Insurance

is the most extensive strategic activity of the Triglav Group, which includes non-life, health,

life and pension insurance as well as reinsurance.

The Group’s insurance business comprises:



in Slovenia:

Zavarovalnica Triglav d.d., Triglav, Zdravstvena zavarovalnica d.d., Pozavarovalnica

Triglav Re d.d. and Triglav, pokojninska družba d.d.;



abroad:

eight insurance companies in the Adria region (Croatia, Serbia, Montenegro, Bosnia and

Herzegovina, and North Macedonia) and through business partnerships under the principle of

free movement of services (FOS).

Position in the regional insurance market

In 2021, the Triglav Group again consolidated its dominant market position in

the Adria region

(Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia) by increasing its

market share by 0.5 percentage point to 21.6%.

The Company maintained its leading role among the insurers in

South-East Europe

(Albania, Bosnia and

Herzegovina, Bulgaria, Montenegro, Croatia, Moldova, Romania, North Macedonia, Serbia and Slovenia).

According to a SeeNews survey, eight insurance companies of the Triglav Group and 12 Slovenian

insurers (three insurers from Slovenia are among the top ﬁve) rank among the top 100 insurers in

South-East Europe in terms of gross written premium. Generali came in second (vs. fourth the year

before), while the Romanian insurer Euroins ranked third (eighth the year before) as a result of a high

increase in written premium. All 100 insurers collected a total of EUR 9.7 billion in written premium

(12% more than the previous year), with only nine of them recording a drop in written premium. Their

net proﬁt grew by 26% to EUR 599 million. Among the top 100 insurers, Zavarovalnica Triglav again saw

the highest proﬁts, with Zavarovalnica Sava coming in second in this category.

* Data for 2022 not yet available.

Source: Zavarovalnica Triglav’s calculation based on the data of national insurance supervision agencies and insurance associations

2020

2021

8.3%

9.1%

The market share of insurers in the Adria region in 2021 and 2020 (%)*

Zavarovalnica Triglav

Generali

Sava Insurance Group

Agram

Croatia Group

VIG

Vzajemna

Dunav

Grawe

Uniqa

Allianz

Modra zavarovalnica

21.6%

21.1%

2.2%

2.3%

3.0%

3.4%

3.3%

3.9%

4.7%

5.4%

6.2%

6.5%

6.2%

7.7%

8.1%

7.7%

13.5%

13.2%

Triglav Group and Zavarovalnica Triglav in 2022

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Source: SeeNews 2022

The largest insurers in South-East Europe by written premium in 2021

(in EUR million)

Zavarovalnica Triglav d.d.

Generali zavarovalnica d.d.

Euroins Romania Asigurare Reasigurare SA

Zavarovalnica Sava d.d

Allianz

- Tiriac Asigurari SA

Croatia Osiguranje d.d.

Groupama Asigurari SA

Omniasig VIG SA

Vzajemna Zdravstvena zavarovalnica d.v.z.

Dunav Osiguranje AD

Generali Osiguranje Srbija AD

Triglav Zdravstvena zavarovalnica d.d.

Euroherc Osiguranje d.d.

NN Asigurari de Viata SA

Euroins AD

794.4

450.1

446.0

434.4

413.5

386.9

331.1

327.4

321.7

268.6

199.0

197.0

191.1

175.9

2.7.3 Asset management

The

asset management activity

at the Triglav Group, which is performed by Zavarovalnica Triglav,

the Group’s life insurance and pension insurance companies, Triglav Skladi d.o.o., Triglav, Upravljanje

nepremičnin d.o.o. and Trigal d.o.o., includes saving via the Group’s insurance services and investing in the

Group’s mutual funds and discretionary mandate assets, pension funds and private equity funds.

Triglav Group and Zavarovalnica Triglav in 2022

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.7.4 Composition of the Triglav Group

As at 31 December 2022, the Triglav Group comprised 53 companies; in addition to the parent company, 29 subsidiaries, 14 associates and 9 joint ventures.

39.07%

38.47%

The Triglav Group members and their participating interests as at 31 December 2022

100.00%

Triglav, Zdravstvena zavarovalnica d.d., Koper

100.00%

Triglav, pokojninska družba d.d., Ljubljana

34.00%

Društvo za upravljanje EDPF a.d., Banja Luka

100.00%

Pozavarovalnica Triglav Re d.d., Ljubljana

100.00%

Triglav Savjetovanje d.o.o., Zagreb

100.00%

Triglav Svetovanje d.o.o., Domžale

Triglav Savetovanje d.o.o., Belgrade

100.00%

Triglav Osiguranje d.d., Zagreb

100.00%

Triglav Osiguranje a.d.o., Belgrade

100.00%

Autocentar BH d.o.o., Sarajevo

100.00%

Triglav INT d.o.o., Ljubljana

97.78%

Triglav Osiguranje d.d., Sarajevo

93.01%

Sarajevostan d.o.o., Sarajevo

100.00%

Triglav Osiguranje a.d., Banja Luka

100.00%

Triglav Savjetovanje d.o.o., Sarajevo

100.00%

Lovćen životna osiguranja a.d., Podgorica

99.07%

Lovćen Osiguranje a.d., Podgorica

100.00%

Lovćen auto d.o.o., Podgorica

81.69%

Triglav Osiguruvanje a.d., Skopje

14.29%

85.71%

Triglav Osiguruvanje Život a.d., Skopje

100.00%

Triglav Avtoservis d.o.o., Ljubljana

100.00%

Triglav penzisko društvo a.d., Skopje

100.00%

Triglav Skladi d.o.o., Ljubljana

62.64%

Triglav Fondovi d.o.o., Sarajevo

49.90%

TRIGAL d.o.o., Ljubljana

100.00%

100,00%

50.00%

100,00%

23.58%

85,00%

100,00%

100.00%

Triglav upravljanje nekretninama d.o.o., Zagreb

100.00%

Triglav, Upravljanje nepremičnin d.o.o., Ljubljana

100.00%

Triglav upravljanje nekretninama d.o.o., Podgorica

Triglav upravljanje nekretninama d.o.o., Sarajevo

100.00%

Share owner

Parent company

Subsidiary

Associate

Joint venture

Equity stake

Nama d.d., Ljubljana

Nama IN d.o.o., Ljubljana

Triglavko d.o.o., Ljubljana

Zavod Vse bo v redu, Ljubljana

Diagnostični center Bled d.o.o., Bled

Medicinsko termalni center Fontana d.o.o., Maribor

Medi Cons kardiologija d.o.o., Novo mesto

Gastromedica d.o.o., Murska Sobota

Internistična GE ambulanta d.o.o., Nova Gorica

Medicinski center Cardial d.o.o., Ljubljana

DC Naložbe d.o.o., Bled

Kirurški sanatorij Rožna dolina d.o.o., Ljubljana

Neuroedina d.o.o., Bled

Alifenet d.o.o., Ljubljana

80.00%

Trigal Dev d.o.o., Ljubljana

90.00%

RES PV d.o.o., Ljubljana

100.00%

Resalta SPV1 d.o.o., Zagreb

100.00%

Trigal Renewables d.o.o., Ljubljana

100.00%

Trigal energija rasvete d.o.o., Belgrade

49.00%

PVE Perun d.o.o., Skopje

100.00%

Trigal Funds d.o.o., Ljubljana

100.00%

Salinera, d.o.o, Ljubljana

0.16%

100.00%

Triglav zdravje asistenca d.o.o., Ljubljana

Zavarovalnica Triglav d.d.

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Changes in the structure of the Triglav Group in 2022

There were no signiﬁcant changes in the Group’s structure in 2022. Companies carried out some

corporate activities, such as capital increases, consolidation, increase of participating interests and

others:



With the in-cash contribution of EUR 7,500, Triglav, Zdravstvena zavarovalnica d.d., Koper established

Triglav zdravje asistenca, družba za zdravstveno dejavnost d.o.o., Ljubljana, thereby becoming its

100% owner.



Triglav INT d.d., Ljubljana acquired a 0.36% participating interest in Triglav Osiguruvanje a.d., Skopje

from non-controlling interest holders, thereby increasing its participating interest in said company

to 81.69%. The consideration totalled MAK 2.2 million or EUR 36 thousand.



Triglav Svetovanje d.o.o., Domžale sold its 51% participating interest in Triglav Savetovanje d.o.o.,

Belgrade to Triglav Osiguranje a.d.o, Belgrade, which thereby became its 100% owner.



Triglav Svetovanje d.o.o., Domžale sold its 51% participating interest in Triglav Savjetovanje d.o.o.,

Zagreb to Triglav Osiguranje d.d., Zagreb. As a result, Triglav Osiguranje, Zagreb became a 100%

owner of said company.



PROF IN d.o.o., Sarajevo, a subsidiary of Triglav Skladi, changed its name to Triglav Fondovi, društvo za

upravljanje investicijskim fondovima d.o.o., Sarajevo or abbreviated Triglav Fondovi d.o.o., Sarajevo.



Zavarovalnica Triglav increased the capital of its subsidiary Triglav, pokojninska družba d.d., Ljubljana

in the amount of EUR 45.0 million with the aim of consolidating its capital strength and resilience in

the environment characterised by signiﬁcant growth in interest rates. The parent company retained

its 100% participating interest.



Triglav INT d.o.o. increased the capital of Triglav Osiguranje d.d., Banja Luka through the in-cash

contribution of EUR 1.0 million, thereby remaining its 100% owner.



In Q3 2022, Zavarovalnica Triglav, as the Triglav Group’s controlling company, for the ﬁrst time

included Triglav Fondovi d.o.o., Sarajevo in its consolidated ﬁnancial statements under the full

consolidation method.



In Q3 2022, Triglav Osiguranje d.d., Sarajevo and Autocentar BH d.o.o., Sarajevo increased the capital

of Triglav upravljanje nekretninama d.o.o., Sarajevo with in-kind contributions of EUR 577 thousand.

Through this capital increase, the participating interests changed as follows: Triglav Osiguranje

d.d., Sarajevo became a 25.13% owner (previously 100%) of said company and Autocentar BH d.o.o.,

Sarajevo a 74.85% owner (before the capital increase it did not have any participating interest

in said company). In Q4 2022,Triglav Upravljanje nepremičnin d.o.o. bought the participating

interest in Triglav upravljanje nekretninama d.o.o., Sarajevo from Triglav Osiguranje d.d., Sarajevo

and Autocentar BH d.o.o., Sarajevo, thereby becoming a 100% owner of Triglav upravljanje

nekretninama d.o.o., Sarajevo.



Triglav INT d.o.o. increased the capital of Triglav Osiguruvanje Život a.d., Skopje with an in-cash

contribution of EUR 2.0 million, thereby increasing its participating interest to 85.71%. With

the capital increase, the participating interest of Triglav Osiguruvanje a.d., Skopje decreased to

14.29% (previously 20.00%) and that of the Triglav Group increased to 97.38% (96.34% before the

capital increase).



Zavarovalnica Triglav d.d. increased the capital of Triglav penzisko društvo a.d., Skopje with an

in-cash contribution of EUR 2.4 million, remaining its 100% owner.



Zavarovalnica Triglav d.d. increased the capital of Triglav INT, holdinška družba d.o.o. with an in-cash

contribution of EUR 10.0 million, retaining its 100% participating interest.

The changes in the Group are discussed in greater detail in Section

2.1.4 of the Accounting Report

GRI 2-6

Triglav Group and Zavarovalnica Triglav in 2022

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.8

Management of

Zavarovalnica Triglav

The Management Board of

Zavarovalnica Triglav comprises:

Marica Makoter

Member

The period from the ﬁrst appointment to the end of

the current term of ofﬁce: 2011–2026

Employed at the Triglav Group: from 2001

Tadej Čoroli

Member

The period from the ﬁrst appointment to the end of

the current term of ofﬁce: 2014–2024

Employed at the Triglav Group: from 2001

Andrej Slapar

President

The period from the ﬁrst appointment to the end of

the current term of ofﬁce: 2013–2024

Employed at the Triglav Group: from 1997

Uroš Ivanc

Member

The period from the ﬁrst appointment to the end of

the current term of ofﬁce: 2014–2024

Employed at the Triglav Group: from 2001

Blaž Jakič

Member

The period from the ﬁrst appointment to the end of

the current term of ofﬁce: 2023–2028*

Employed at the Triglav Group: from 2010

* His term of ofﬁce as a Management Board member of Zavarovalnica Triglav began on

2 March 2023.

Report of the Supervisory Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Report of the

Supervisory Board

Report of the Supervisory Board of Zavarovalnica Triglav d.d.

on the veriﬁcation of the Annual Report of the

Triglav Group and Zavarovalnica Triglav d.d. for 2022

and

Opinion of the Supervisory Board of Zavarovalnica Triglav d.d.

on the Annual Internal Audit Report of the Internal Audit

Department of Zavarovalnica Triglav d.d. for 2022

In 2022, the Supervisory Board of Zavarovalnica Triglav carried out the

responsible and proper supervision of the operations of Zavarovalnica

Triglav d.d. and the Triglav Group. It oversaw different aspects of their

operations and development, and on that basis took appropriate

decisions and followed up on their implementation. Individual areas

were ﬁrst discussed within the framework of the Supervisory Board’s

committees. Based on their ﬁndings, proposals and careful assessment,

the Supervisory Board passed appropriate resolutions. The Supervisory

Board also monitored the implementation and effectiveness of the

Triglav Group’s strategy.

The Supervisory Board performed its work within the scope of its powers

and competencies set out by law, the Company’s Articles of Association

and its own Rules of Procedure.

Andrej Andoljšek

Chairman

Tomaž Benčina

Member

Branko Brečko

Vice Chairman

Peter Kavčič

Member

Igor Stebernak

Member

Jure Valjavec

Member

Igor Zupan

Member, Representative of employee

Branko Gorjan

Member, Representative of employee

Peter Celar

Member, Representative of employee

Report of the Supervisory Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.1 Introduction

Pursuant to Article 282 of the Companies Act and Article 69 of the Insurance Act, the Supervisory Board

hereby presents its Report on the veriﬁcation of the Annual Report of the Triglav Group and Zavarovalnica

Triglav d.d. for 2022 (hereinafter: the report) and its Opinion on the Annual Internal Audit Report of the

Internal Audit Department of Zavarovalnica Triglav d.d. for 2022.

The ﬁndings are based on the supervision of operations of Zavarovalnica Triglav d.d. (hereinafter: the

Company, the controlling company or the parent company) in 2022 and on the veriﬁcation of the Audited

Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2022, including the report of the non-

life insurance actuarial function holder and the life insurance actuarial function holder for 2022.

An integral part of the report is also the opinion of the Supervisory Board on the work of the Internal

Audit Department in 2022 and the Annual Internal Audit Report of the Internal Audit Department of

Zavarovalnica Triglav d.d. for 2022.

3.2 General information

The Supervisory Board and its committees in 2022

The composition of the Supervisory Board in 2022 is described in Section

5. Corporate Governance

Statement (Supervisory Board) of the Business Report

. In 2022, the Supervisory Board held eight

sessions and had four committees: the Audit Committee, the Appointment and Remuneration

Committee, the Strategy Committee and the Nomination Committee. The composition of the

Supervisory Board committees in 2022 as well as the more important duties and powers of individual

committees are described in Section

5. Corporate Governance Statement (Composition of Supervisory

Board committees and their activities in 2022) of the Business Report

Audit Committee

In 2022, the Audit Committee held six meetings, at which it, among other things:



monitored and discussed ﬁnancial reporting procedures and the external audit of the annual

ﬁnancial statements of the Triglav Group and Zavarovalnica Triglav d.d.;



assessed the content of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for

2021 and the 2022 interim reports;



took note of the management representation letter for Zavarovalnica Triglav d.d. and the Triglav Group;



discussed the Solvency and Financial Condition Report of Zavarovalnica Triglav d.d. as at

31 December 2021 and the Solvency and Financial Condition Report of the Triglav Group as at

31 December 2021, including the independent auditor’s assurance reports;



monitored and discussed the risk management systems, the functioning of internal controls, the

Internal Audit Department’s interim reports, recommendations, annual work plan for 2023 and

guidelines for the 2024–2026 period;



discussed the ﬁndings of the Insurance Supervision Agency and other supervisory bodies in

supervision procedures within the Audit Committee’s competence and was briefed on procedures

related to these ﬁndings or requirements;



supervised and discussed the conclusion of agreements with audit ﬁrms, the independence of the

certiﬁed auditor, the quality of auditing, the audit plan for 2022 and the auditor’s report following

the pre-audit of Zavarovalnica Triglav d.d. for 2022; discussed and approved the proposal to appoint

an auditor to perform audit services for the 2022–2024 ﬁnancial year;



discussed the report on the external quality assessment of the work of the Internal Audit

Department of Zavarovalnica Triglav d.d. and the implementation plan of the recommendations for

improving the quality of the Internal Audit Department’s work;



took note of remuneration of the Director of Internal Audit Department for 2021;



discussed risk reports of Zavarovalnica Triglav d.d. and the Triglav Group;



took note of the comparative analysis of capital adequacy of (re)insurance groups in the European

Union and (re)insurers in Slovenia;



took note of the proposal for stress and scenario tests, which show the potential risks of the Group

to be addressed within the own risk and solvency assessment (ORSA) process;



discussed the Compliance Ofﬁce Annual Report for 2021;



discussed the Statement of Compliance with the Slovenian Corporate Governance Code;



monitored the operation of the information technology and cyber security area;



took note of the status of the implementation of IFRS 17 in the Triglav Group;



took note and approved the proposed Guidelines for monitoring the quality of external auditing in

the Triglav Group.

The external expert Jernej Pirc provided his expertise and support to the work of the Audit Committee

in relation to information technology issues. The Audit Committee carried out a performance self-

assessment with the aim of ensuring the continued improvement and quality of its work and adopted

an action plan for the improvement of its performance.

Appointment and Remuneration Committee

The Appointment and Remuneration Committee held seven meetings in 2022. Its most important

activities included:



drawing up draft periodic ﬁt and proper assessments of the members of the Management Board

and the Supervisory Board and of the two bodies as a whole;

Report of the Supervisory Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022



drawing up draft ﬁt and proper assessments of the candidates for the members of the Supervisory

Board, including the Audit Committee external member Luka Kumer, and of the body collectively;



reviewing the calculation and amount of the average gross salary for 2022 in the Group members

which are headquartered in the Republic of Slovenia and were fully consolidated by the Group

pursuant to the Act Governing the Remuneration of Managers of Companies with Majority

Ownership Held by the Republic of Slovenia or Self-Governing Local Communities (ZPPOGD);



discussing the adjustment of the base salary of Management Board members and the calculation of

the Group’s performance factor on which the variable part of remuneration of Management Board

members depends;



giving consent to the proposed amendments to the Methodology for the calculation of the

performance factor to set the annual bonus and reduce the base salary of a Management Board

member for 2022;



discussing the report on the development of key promising staff at Zavarovalnica Triglav d.d.;



reviewing amendments to the Fit and Proper Policy for the Management Board and Supervisory

Board Members of Zavarovalnica Triglav d.d., the Succession Policy for the Management Board

Members of Zavarovalnica Triglav d.d. and the premises for amending the Remuneration Policy of

Zavarovalnica Triglav d.d.;



discussing the additional training programme for the Supervisory Board members in 2022, the

proposal of the President of the Management Board regarding the nomination procedure due to

the expiry of the term of ofﬁce of the Management Board member Barbara Smolnikar, the proposal

for termination of the term of ofﬁce of the Management Board member David Benedek by mutual

agreement and the proposal for the appointment of the new Management Board member Blaž Jakič.

Strategy Committee

The Strategy Committee, which held two meetings in 2022, devoted special attention to the realisation

of Triglav Group’s strategy and starting points for the development of the Triglav Group’s business plan

for 2023.

Nomination Committee

The Nomination Committee was established on 21 December 2022 with the aim of carrying out

the nomination procedure to appoint candidates for Supervisory Board members – shareholder

representatives to replace Peter Kavčič and Branko Bračko, who on 9 December 2022 notiﬁed the

Company of their irrevocable resignation as Supervisory Board members. The Nomination Committee

held no meetings in 2022.

3.3 Work of the Supervisory Board and scope of

supervision of the company's operations in 2022

The description of the Supervisory Board’s operations and the scope of monitoring and supervision of the

governance of the Company and the Group in 2022 are based on the supervision of the Company’s and the

Group’s operations performed by the Supervisory Board in 2022, acting within its powers. The Supervisory

Board held eight sessions in 2022.

The Supervisory Board’s duty is to supervise how the Company conducts its business and to perform other

tasks in accordance with the Companies Act, the Insurance Act, the Company’s Articles of Association, the

Rules of Procedure of the Supervisory Board and the Slovenian Corporate Governance Code. The methods

and organisation of its work are set out in the Rules of Procedure of the Supervisory Board, which are

published on the Company’s website.

a) With regard to its core competences, in 2022 the Supervisory Board:



approved the Solvency and Financial Condition Report (SFCR) of Zavarovalnica Triglav d.d. and the

Triglav Group for 2021 and the annual capital adequacy as at 31 December 2021 and took note of

the independent auditor’s assurance report;



adopted the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2021, the

Report by the Supervisory Board of Zavarovalnica Triglav d.d. on the veriﬁcation of the Annual Report

of the Triglav Group and Zavarovalnica Triglav d.d. for 2021 and the Opinion of the Supervisory

Board of Zavarovalnica Triglav d.d. on the Annual Internal Audit Report for 2021 of the Internal Audit

Department of Zavarovalnica Triglav d.d.;



discussed unaudited interim ﬁnancial reports of the Triglav Group and Zavarovalnica Triglav d.d. for

the periods from 1 January to 31 March 2022, from 1 January to 30 June 2022 and from 1 January to

30 September 2022;



discussed the Annual Internal Audit Report of the Internal Audit Department for 2021;



approved the Triglav Group’s business policy and business plan for 2023 and took note of the key

ﬁndings of ORSA;



approved the Internal Audit Department’s work plan for 2023 and its guidelines for 2024–2026;



proposed to the 47th General Meeting of Shareholders of Zavarovalnica Triglav d.d. to grant

a discharge to the Management Board for 2021, submitted a proposal regarding the payment of

accumulated proﬁt and a proposal to appoint an audit ﬁrm for the 2022, 2023 and 2024 ﬁnancial

years, and presented the Remuneration Policy and the Remuneration Report for 2021;



discussed the ﬁndings of the Insurance Supervision Agency and other supervisory bodies in

supervision procedures and was briefed on procedures related to these ﬁndings or requirements;



approved the amendments to the Governance System and Policy of Zavarovalnica Triglav d.d., the

Policy of Management and Control of Insurance Services and Products, the Succession Policy and the Fit

and Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d.;

Report of the Supervisory Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022



approved individual transactions in accordance with the law and the Rules of Procedure of the

Supervisory Board.

b) With regard to the supervision of the management of the Company’s operations, in 2022 the

Supervisory Board:



discussed the reports of the Audit Committee, the Appointment and Remuneration Committee and

the Strategy Committee, and was briefed on the ﬁnancial reports of Zavarovalnica Triglav d.d., the

Triglav Group and Zavarovalnica Triglav’s subsidiaries;



took note of the implementation of the Triglav Group strategy;



monitored the assessed performance indicators of the Company in each period, capital adequacy,

the implementation of the business plan and potential measures;



took note of risk reports, the Risk Underwriting and Management Strategy, the Risk Appetite

Statement, the Capital Management Policy and the Policy of the Risk Management and Capital

Adequacy Function of Zavarovalnica Triglav d.d. and the Triglav Group;



oversaw the work of the Internal Audit Department and was briefed on its internal audit reports as

well as on the Compliance Ofﬁce Annual Report for 2021 and its work plan for 2022;



took note of the Report of the Life Insurance Actuarial Function Holder in Zavarovalnica Triglav d.d.

and the Report of the Non-Life Insurance Actuarial Function Holder in Zavarovalnica Triglav d.d.;



was briefed on insurance products;



took note of the report on the development of key promising staff at Zavarovalnica Triglav d.d. in 2021;



discussed the Statement of Compliance with the Slovenian Corporate Governance Code and took

note of the positions on the Corporate Governance Code for Companies with Capital Assets of the

State and the Recommendations and Expectations of the Slovenian Sovereign Holding and



was briefed on other information regarding Zavarovalnica Triglav d.d., the Triglav Group and its

subsidiaries.

c) Other major actions taken by the Supervisory Board in 2022:



discussing periodic ﬁt and proper assessments of the members of the Management Board and the

Management Board as a collective body, the members of the Supervisory Board and the Supervisory

Board as a collective body, as well as of the Audit Committee external member Luka Kumer;



approving the Group’s performance factor, determining the annual performance bonus for the

Management Board of Zavarovalnica Triglav d.d. for 2021 and approving the amendments to the

Methodology for the calculation of the performance factor to set the annual bonus and reduce the

base salary of a Management Board member for 2022;



discussing the report of the Works Council of Zavarovalnica Triglav d.d.;



discussing the proposal of the President of the Management Board regarding the nomination

procedure due to the expiry of the term of ofﬁce of the Management Board member Barbara

Smolnikar and the proposal for termination of the term of ofﬁce of the Management Board member

David Benedek by mutual agreement and approving the proposal for the appointment of the new

Management Board member Blaž Jakič;



taking note of the resignation letters of the Supervisory Board members Branko Bračko and

Peter Kavčič, who on 9 December 2022 notiﬁed the Company of their irrevocable resignation as

Supervisory Board members, as a result of which the Nomination Committee was established to

carry out the nomination procedure in 2023;



adopting the labour costs plan of the Supervisory Board for 2023, the ﬁnancial calendar and the

timetable for the meetings of the Supervisory Board and its committees in 2023;



performing other activities related to the supervision and work of the Supervisory Board or its

committees.

The costs in connection with the Supervisory Board’s work other than the remuneration paid to its

members and committees (disclosed in Section

8 Management and supervisory bodies and their

remuneration in the Accounting Report

and in Section

5.3.3 Supervisory Board in the Business Report

)

mostly included the rental costs of interpretation equipment for smooth execution of its sessions,

training costs of the members of the Supervisory Board and its committees, and the outsourced IT

services for the Audit Committee. These costs amounted to EUR 277,646 in 2022.

3.4 Self-assessment

Speciﬁc topics were discussed in advance by the Supervisory Board’s committees, which drafted

resolutions to be adopted by the Supervisory Board and meticulously carried out other tasks within

the scope of their powers. The committee chairs regularly reported on their work at the sessions of the

Supervisory Board, which discussed the adopted decisions, submitted recommendations and opinions

and passed appropriate resolutions after due consideration.

All members were involved in the work of the Supervisory Board and its committees. With their

attendance at its sessions and active participation in discussions and decision-making, they contributed

to the effective discharge of duties within the powers of the Supervisory Board and its committees. The

work of the Supervisory Board is well managed and supported, whilst the planning and frequency of its

sessions is adequate. Both the Rules of Procedure of the Supervisory Board and the Rules of Procedure of

the Audit Committee include clear rules of conduct in the event of a conﬂict of interest. The Supervisory

Board members and the Audit Committee’s external member signed and submitted statements of

independence in accordance with the Slovenian Corporate Governance Code, which are published

on the Company’s website. All Supervisory Board members (except employee representatives Branko

Gorjan and Peter Celar) declared themselves independent in accordance with the Slovenian Corporate

Governance Code criteria (all statements of independence are published on the Company’s website).

In 2022, to the knowledge of the Supervisory Board, there was no case of conﬂict of interest with an

individual Supervisory Board member in the discussions and decisions of the Supervisory Board and its

committees, or appropriate action was taken to manage it. The Supervisory Board and its committees

follow the highest standards of conﬂict of interest management.

Report of the Supervisory Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The Supervisory Board is of the opinion that its cooperation with the Management Board was adequate,

in accordance with the applicable legislation and good practices. To the best of its knowledge, the

Supervisory Board was informed of all events of material signiﬁcance to the assessment of the situation

and its consequences, and to the effective supervision of the Company’s operations. The documents

provided as materials for the Supervisory Board’s sessions were of good quality and information was

accurate, relevant, reliable, comparable and exhaustive. The Supervisory Board regularly followed the

implementation of its resolutions. The Governance System and Policy of Zavarovalnica Triglav d.d. sets

out main corporate governance guidelines, taking into account the set long-term objectives and the

deﬁned role and work of the Supervisory Board and its committees.

The ﬁt and proper criteria as set out in the Fit and Proper Policy for the Management Board and

Supervisory Board Members of Zavarovalnica Triglav d.d. apply to both the Supervisory Board as

a collective body and to Supervisory Board members as individuals. Fitness and propriety were assessed

before new Supervisory Board members took ofﬁce. In addition, the Appointment and Remuneration

Commission’s periodic assessment was performed. The Supervisory Board as a collective body was

assessed as ﬁt and proper, taking into account the adequate range of qualiﬁcations, knowledge and

experience in view of the circumstances and requirements under which the Company operates. A ﬁt and

proper assessment is also performed for the Audit Committee’s external member.

The Supervisory Board regularly carries out the self-assessment procedure. Based on its ﬁndings,

it adopts an action plan containing a series of proposals and measures aimed at improving its

future performance. The implementation of the action plan is monitored on an ongoing basis. By

implementing the self-assessment procedures, the quality of the Supervisory Board’s work is improved,

which is reﬂected in a higher quality of supervision of the operations and the areas material for the

Company and the Group.

The Supervisory Board believes that its composition in 2022 corresponded to the size, activities and set

objectives of both the Company and the Group, which enabled it to make quality decisions.

The Supervisory Board carried out its duties and powers smoothly. The sessions of the Supervisory

Board and its committees were held in person and, in exceptional cases, also virtually with the help of

technical means.

In view of the above, the Supervisory Board is of the opinion that its work and the work of its

committees in 2022 were successful.

3.5 Opinion on the annual internal audit report

for 2022

In accordance with paragraph three of Article 165 of the Insurance Act (ZZavar-1), the Annual Internal

Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2022 was submitted to

the Supervisory Board, which took note of it at its session on 28 March 2023. The report contains an

overview of the implementation of the Internal Audit Department’s (hereinafter: IAD) planned activities

in 2022 and a summary of material audit ﬁndings, including an assessment of the adequacy and

effectiveness of risk management and the internal control system of the audited areas, the assessment

of the adequacy of the IAD’s funds for its work, the IAD’s quality assurance and improvement programme

and its results, and the statement of independence and impartiality of the IAD and its employees.

The Internal Audit Department conducted the planned internal audits in the Company and other

companies of the Group and presented its internal audit ﬁndings to the relevant persons in charge

and made recommendations for improving risk management and the internal control system of

audited areas. Based on the performed internal audits and the follow-up of implementation of

recommendations, the IAD assessed that risk management and the internal control system of the

audited areas within the Company and the Group were overall appropriate and were constantly

improving. The IAD also carried out advisory activities, followed up on the implementation of

recommendations made by external auditors, and carried out tasks related to quality assurance

and improvement of the IAD and the internal audit departments of other Group members. The IAD

reported on the implementation of its work plan, material audit ﬁndings and the implementation

of recommendations on a quarterly basis to the Audit Committee and on a semi-annual basis to the

Supervisory Board.

Based on the monitoring of the IAD’s work and the submitted Annual Internal Audit Report of the

Internal Audit Department of Zavarovalnica Triglav d.d. for 2022, the Supervisory Board is of the opinion

that the IAD operated in line with its work plan for 2022, which was adopted by the Management

Board with the approval of the Supervisory Board, and the expectations of the Supervisory Board and

that its work contributed to the better functioning of the internal control system and improved risk

management both in the Company and the Group. The Supervisory Board has no objection to the

Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2022.

3.6 Findings of the supervisory board regarding

the operations of Zavarovalnica Triglav in 2022

Based on its monitoring and supervision of the Company’s operations in 2022 and the examination and

veriﬁcation of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d., the Supervisory

Board hereby establishes that the Company performed well and consistently pursued its set strategic

objectives.

The Group generated EUR 134.5 million in consolidated proﬁt before tax (index 101) and EUR 110.2

million in consolidated net proﬁt (index 98). The parent company’s net proﬁt amounted to EUR 120.5

million (index 164).

The Group’s insurance companies generated insurance and coinsurance premiums of EUR 1,479.6

million in the preceding year (index 109), of which EUR 868.9 million (index 109) was earned by the

parent company. Premium growth was achieved in all insurance segments and in all markets where the

Group operates.

The Group recorded gross claims paid of EUR 832.2 million, up by 13% relative to 2021. Gross claims

paid by the parent company amounted to EUR 452.5 million (index 111).

Report of the Supervisory Board

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Total consolidated gross operating expenses incurred by the Group in the amount of EUR 374.9 million

rose by 12% and those of the Company totalled EUR 221.4 million (index 113).

The Group’s total equity amounted to EUR 752.8 million as at 31 December 2022 and was 19% lower

relative to the preceding year. Return on equity stood at 13.1%.

The Group’s ﬁnancial stability, high capital adequacy and high proﬁtability in 2022 were again

conﬁrmed by the two renowned rating agencies S&P Global Ratings and AM Best by assigning an “A”

rating to the Group. Both credit ratings have a stable medium-term outlook.

The ﬁndings of the Supervisory Board are also based on the following:



Report of the non-life insurance actuarial function holder for 2022,



Report of the life insurance actuarial function holder for 2022,



Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2022.

The Supervisory Board has no objection to the aforementioned reports.

3.7 Annual report

The Management Board submitted the Audited Annual Report of the Triglav Group and Zavarovalnica

Triglav d.d. for 2022 to the Supervisory Board.

The Supervisory Board hereby ascertains that the Annual Report was compiled within the statutory

deadline and submitted to the appointed auditor. The Annual Report of the Triglav Group and

Zavarovalnica Triglav d.d. for 2022 was audited by the audit ﬁrm Deloitte revizija d.o.o., Ljubljana,

which on 10 March 2023 expressed an unmodiﬁed opinion on the separate and consolidated ﬁnancial

statements in the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2022. In their

report as an independent auditor, they took a stance on key audit issues regarding insurance technical

provisions and equity investments in subsidiaries. They also provided their opinion on other information

contained in the Annual Report as to their consistency with the separate and consolidated ﬁnancial

statements and their compliance with the applicable legislation and other regulations.

The certiﬁed auditor, a key audit partner, was present at the session of the Supervisory Board and

the Audit Committee regarding those items where the Annual Report was discussed and provided

the requested additional explanations to the Audit Committee and the Supervisory Board. The Audit

Committee discussed the annual report after the pre-audit and the ﬁnal audit and the letter to the

Management, which was also discussed by the Supervisory Board, after the audit

Based on a detailed veriﬁcation, the Supervisory Board established that the Annual Report of the Triglav

Group and Zavarovalnica Triglav d.d. for 2022, which was prepared by the Management Board and

veriﬁed by a certiﬁed auditor, was compiled in a clear and transparent manner and that it was a true

and fair presentation of the assets, liabilities, ﬁnancial position, and proﬁt or loss of the Triglav Group

and Zavarovalnica Triglav d.d. The Supervisory Board is of the opinion that the Corporate Governance

Statement, which is included in the Annual Report, is appropriate and has no objections to it.

In accordance with the aforementioned ﬁndings, the Supervisory Board expresses no objection to

the unmodiﬁed opinion of the certiﬁed audit ﬁrm Deloitte revizija d.o.o., Ljubljana, which found that

in all material respects the consolidated and separate ﬁnancial statements presented a true and

fair presentation of the ﬁnancial position of the Triglav Group and Zavarovalnica Triglav d.d. as at 31

December 2022, their proﬁt or loss, comprehensive income and cash ﬂows for the year then ended, in

accordance with the International Financial Reporting Standards as approved by the EU.

In view of the above, the Supervisory Board approves the Audited Annual Report of the Triglav Group

and Zavarovalnica Triglav d.d. for the Year Ended 31 December 2022.

At its session, the Supervisory Board also discussed the Remuneration Report for 2022, which was

veriﬁed by the authorised audit ﬁrm Deloitte revizija d.o.o., Ljubljana, and in accordance with paragraph

six of Article 294b of the Companies Act (ZGD-1) issued the auditor’s report conﬁrming that the

Remuneration Report contains all the information required by paragraphs two and three of Article 294b

of the ZGD-1. The review of the company’s report was performed by a certiﬁed auditor in accordance

with the International Standard on Assurance Engagements 3000 – Assurance Engagements, except for

audits or investigations of past accounting information.

3.8 Proposal for the distribution of

accumulated proﬁt

At its 2nd/2023 session, the Supervisory Board examined the Management Board’s proposal for the

distribution of accumulated proﬁt as at 31 December 2022, which will be subject to a ﬁnal decision by

the General Meeting of Shareholders of Zavarovalnica Triglav d.d., and approved the following draft

resolution on the distribution of accumulated proﬁt to be proposed by the Management Board to the

General Meeting of Shareholders:

“The accumulated proﬁt totalling EUR 63,769,278.25 as at 31 December 2022 shall be distributed

as follows:



A part of the accumulated proﬁt amounting to EUR 56,837,870.00 shall be distributed for dividend

payments. A dividend in the amount of EUR 2.50 gross per share shall be paid to the shareholders

appearing in the Share Register as at 20 June 2023. On 21 June 2023, the Company shall ensure funds

for the payment of all dividends on the account of KDD – Centralno klirinška depotna družba d.d.,

intended to execute the corporate action of paying out dividends to the shareholders in accordance

with the common European standards for corporate actions.



The distribution of the remaining accumulated proﬁt of EUR 6,931,408.25 shall be decided on

in the coming years and shall remain undistributed.”

Ljubljana, 28 March 2023

Andrej Andoljšek

Chairman of the Supervisory Board

Applause to the invisible

contributors to our joint success

In the same responsive way as the sales staff listen to the needs of

clients,

Barbara Mušič

and

Miroslav Breznik

always come to the aid

of sales staff with development and support technological services.

Barbara works in the Development and Technology Department

in the ﬁeld of Zavarovalnica Triglav's digital business and client

experience. Miroslav always has all the answers to questions

relating to IT. The sales staff gave them a big round of applause

when they were announced as top salespersons, when they received

special recognition for accessibility and efﬁcient assistance.

In the Triglav Group, the development of technology and IT

is at the fore of:



The agile and responsive operation of multifunctional teams,



Achieving a seamless user experience,



Building and maintaining business ecosystems that enable

an outstanding user experience.

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Strategy and plans of the Triglav Group



Strategic risks and business opportunities are regularly

assessed based on the challenges and opportunities

identiﬁed in the business and social environments, which are

characterised by rapid changes.



The Triglav Group’s vision, aimed at creating an outstanding

user experience, is implemented through development

activities. The transition from an insurance-oriented to a

service-oriented business model with multiple ecosystems

and continued digital transformation are at the fore.



The Group’s performance in 2022 was sound and impacted by

one-off events, with the business result exceeding plans.



The Group’s operations will continue to be proﬁtable, further

increasing the business volume in 2023.

Challenges

and

opportunities

of today

The ever-changing business and social environment

requires the Group to constantly monitor and

identify new challenges and opportunities in its

business operations and to effectively deal with

unknown risks. To this end, strategic risks and

opportunities as well as the relevance of the main

guidelines for the implementation of the Group’s strategy are regularly

assessed. By constantly upgrading the risk management system, the Group

maintains a level of preparedness that ensures an optimal response even in

the case of unexpected events, which in turn ensures proﬁtable, stable and

future-oriented business operations.

The main trends that the Group has identiﬁed as having a signiﬁcant

impact on its business operations today and in the coming years are, in

particular, the events related to the geopolitical situation as a result of the

Russian-Ukrainian war and their impact on the macroeconomic situation,

inﬂation and ﬁnancial markets, increased digitalisation of operations and

related changes in consumer habits, as well as the effects of climate change

and the growing importance of sustainable business.

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The Group’s acceptance of challenges and risk management

The Triglav Group is responding to the current situation by carefully

adjusting its risk proﬁle

. A well-functioning risk

management system enables the Group to monitor the situation and respond to it rapidly by appropriately addressing

the negative impacts on capital adequacy and proﬁtability.

Investment policies

are primarily designed to pursue the interests of policyholders, insured persons

and other beneﬁciaries from insurance contracts. Therefore, the security of investments and the

simultaneous achievement of the highest possible proﬁtability with the assumed risks remain at

the forefront. The amount, maturity and currency of assets allocated to cover insurance liabilities are

harmonised with liabilities as much as possible, thus further limiting market risks. By managing the

remaining assets, the goal of achieving a reasonable rate of return is pursued, taking into account all

the risks assumed and maintaining a high overall credit rating of the investment portfolio. See Section

3.3 of Risk management

for more information about exposure to market risks.

In the current situation, additional attention is paid to the optimal proﬁtability of the insurance

business and the appropriate return on investment, which is also achieved by investing in alternative

investments, which at somewhat lower liquidity generate slightly higher expected rates of return.

The volume of such investments is subordinated to achieving adequate portfolio liquidity even in the

event of a deteriorating situation in the ﬁnancial markets.

For the purpose of timely identiﬁcation and action, the Group set up an effective

system for monitoring the entire

counterparty portfolio

. The portfolio’s credit quality is constantly monitored and the concentration at Group level is

managed by adjusting the exposure to individual partner segments.

Rising interest rates, increased uncertainty about the economic outlook and the unpredictability of the monetary

policy have a major impact on market liquidity, which has deteriorated across all asset classes. The Company ensures

the timely fulﬁlment of all obligations with adequate liquidity. To

maintain an optimal liquidity level

, liquidity risk is

managed on an ongoing basis, which includes regularly testing liquidity in exceptional circumstances and the liquidity

plan with the order of actions to take in such cases. See Section

3.5 of Risk management

for more information.

High inﬂation affects higher claim payouts, especially in the segments of non-life insurance and operating expenses.

Such risks are managed by

regularly monitoring and promptly adjusting the pricing policy and through effective cost

management

. High inﬂation and interest rates also affect the value of the investment portfolio, particularly ﬁxed-

income investments. Inﬂation risk is managed in the context of interest rate risk management. High inﬂation also

resulted in a decrease in the real disposable income of households and, consequently, in lower consumption, including

insurance purchase. If current macroeconomic developments settle into stagﬂation (low economic growth with high

inﬂation), credit and liquidity risks could increase.

Due to the increase in required returns on debt securities and the resulting drop in the value of investments, especially

with regard to supplemental voluntary pension insurance with a guaranteed return, in which the policyholder does not

fully assume the investment risk, the Company adjusted its investment policy to a less risky one in the face of increased

ﬂuctuations in the ﬁnancial markets.

Geopolitical risks are regulated through the appropriate geographic diversiﬁcation of investments, as presented in

Section

7.9 Investment structure of the Triglav Group and Zavarovalnica Triglav

, and prudent conclusion of insurance and

reinsurance transactions in the international market.

The impact of the external environment in which

the Group operates and may continue to operate

In 2021, most European countries lifted the restrictive measures

related to the COVID-19 pandemic, which made it possible to restore

stable economic activity. But the start of 2022 was already marked by

the conﬂict between Russia and Ukraine, which escalated into a war

between the two countries at the end of February. Russia’s military

intervention in the territory of Ukraine triggered a series of international measures

and sanctions intended to weaken the Russian economy, and which disrupted

many supply chains and caused the high growth of energy prices. These effects,

together with the existing consequences of the pandemic, supply chain disruptions

and measures taken by countries to stimulate increased household consumption

during this period, had a strong impact on inﬂation. In order to limit it to around

2%, the central banks started raising interest rates, which lowered economic growth

forecasts. Higher interest rates signiﬁcantly increased countries’ borrowing costs;

countries noticeably increased their indebtedness during the pandemic.

Geopolitical risks and deteriorating macroeconomic bases also had an impact on

ﬁnancial markets. The global markets experienced a shake-up in the beginning of

the year, especially investments in companies with higher exposure to the Russian

market, which was followed by declines in ﬁnancial markets caused by uncertain

economic forecasts and sharp increases in interest rates. In the coming period,

supply chain pressures are expected to ease and the EU’s dependence on the import

of Russian gas and oil to decrease, as a result of which energy prices will stabilise.

Nevertheless, it may take several years for inﬂation to slow down, and the actions

taken by central banks may further deteriorate economic growth outlook.

The advantages brought by international trade and globalisation are diminishing,

and many businesses are aiming to switch to local supply chains. EU Member States

displayed a great deal of coordination in their response to the situation so far, but

despite this, many European countries began to pay more attention to the security

policy. Expectations regarding the further development of economic trends and

ﬁnancial markets thus remain highly uncertain.

Geopolitical

risks and

ﬁnancial

instability

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The impact of the external environment in

which the Group operates and may continue

to operate

Among the key challenges of more mature European

economies is an ageing population due to longer life expectancy and

declining birth rates. International migration mitigates this trend only

partially. The accompanying labour shortage will be an important

factor in future development and economic growth. In most European

countries, young age groups are often characterised by a lower average

income, which stems mainly from the unstable labour market and

precarious forms of employment and results in the lower funding

of the social welfare system. The need for social security is therefore

increasing, and its funding is increasingly difﬁcult. The awareness that

health, lifestyle and environmental aspects are connected is growing.

Employment in the EU is at its highest levels, and the demand for

workers still exceeds supply in many sectors and industries. Staff

shortage in the labour market is particularly high in some highly skilled

occupations, the demand for which has increased in recent years also

due to the rapidly increasing digitalisation of business and the need to

combine IT skills and a good knowledge of speciﬁc topics. The pandemic

has visibly transformed the labour market in past years with the

emergence of several forms of hybrid work that include the possibility

of working from home. Employees now look for jobs that offer hybrid

forms of work. Employers who are better able to adapt to these new

demands also have a better chance of attracting suitable staff. Securing

an appropriately qualiﬁed workforce also results in higher salary costs.

The described challenges also apply to the countries in which the Group

companies operate.

The Group’s acceptance of challenges and risk management

Demographic trends are monitored on an on-going basis in all Group markets. They are observed in terms of adjusting

insurance terms and conditions and calculation factors as well as identifying opportunities for new types of insurance

coverage and products, with which the Group responds to the changing client needs. The coverage of risks that the

compulsory social security scheme does not cover or covers inadequately is ensured by a range of

complementary and supplemental insurance products. The Company is expanding its life, pension and

health insurance product range, thereby increasing the security of clients at all stages of life. It is exposed to

longevity risk in products with lifetime annuity or pension payouts. Especially long-term risk requires special

attention: it is managed by developing dynamic models of the policyholders’ life expectancy and setting

appropriate premium rates and provisions.

The Group is aware that healthcare will continue to gain social signiﬁcance. It is proactively increasing its

range of healthcare services in order to provide its policyholders – at health centres – with timely and, at the

same level of quality, more affordable healthcare services than its competitors on the market. The Group

aims to transform from a traditional health insurance provider into a health partner and provide clients with

comprehensive lifelong services. By offering additional health insurance products and services, it takes into

consideration the risk of a potential healthcare reform and the abolition of supplemental health insurance.

The pandemic also profoundly changed employment and how the Group interacts with its employees, who play a key role

in achieving the Group’s ambitious business objectives. Currently, it is difﬁcult to recruit new employees with appropriate

skills and competences in the Slovenian labour market. A general human resource risk was identiﬁed when recruiting

workers in shortage occupations (IT, digital, BI, risks, actuaries, etc.), in addition to the risk of departure of key staff and

problems with retaining existing staff.

The Group is aware of these risks and manages them accordingly. It aims to provide the best working conditions for its

employees, thereby reducing the risk of unwanted ﬂuctuations. The Group is strengthening its brand of a development-

oriented and responsible employer and building up its recognisability as a desirable employer, being able to attract and

motivate new highly qualiﬁed and highly skilled workers.

During the COVID-19 pandemic, the Group companies implemented a hybrid work model, which included working from

home, for the employees whose nature of work allowed it, and which was continued even after the pandemic ended. This

may be a competitive advantage over companies that do not provide this option. See Section

11. Development activities

for

more information about the hybrid workplace strategic pilot project.

Employee satisfaction within the Group is regularly monitored by measuring the organisational climate, which shows better

results every year. This proves that the Group is effectively adapting to changes; communication is open and effective, and

the Group remains an attractive working environment for its employees despite changes.

See Section

12.4.2 Responsibility to employees

for more information about steps taken to the care for employees.

Demographics

and human

resource risks

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The impact of the external environment in which the Group operates and

may continue to operate

The digital transformation of insurance companies has been accelerating in recent years. Advanced

analytics, the use of cloud services, the Internet of Things, cognitive computing, mobile network

development, process robotisation, machine learning, artiﬁcial intelligence, API interfaces and

remote business are all on the rise. The COVID-19 pandemic has rapidly and extensively transformed the way

insurance companies engage with their clients, largely shifting from physical contact and a small number of

interaction points to remote communication and via digital channels (taking out insurance, settling claims, etc.).

In parallel, some work processes shifted partially from the workplace to employees’ homes, with communication

mainly taking place via an internet connection and with remote access to the Company’s data.

This increased the pace of business digitalisation and produced many challenges, such as client identity veriﬁcation,

remote signing and inspection of the object insured, secure document exchange and managing client data

changes in databases. Insurers are expected to keep up to date with and adapt their operations to digital changes

as well as implement technological upgrades and innovative business models developed by insurtech and ﬁntech

companies. Implementing new digital services into operations and providing an outstanding user experience can

be a signiﬁcant challenge for insurance service providers (due to rapid and continuous development), as it requires

rapid adaptation to new market opportunities and cost-effective performance. The latter is also becoming one of

the key differentiating factors in the industry.

Digitalisation thus not only creates new opportunities but also results in many additional risks. With technological

development, the increasing connectivity of businesses and the ﬁnancial sector’s heavy reliance on major

global information and communication technology (ICT) service providers to provide services to clients, the

vulnerability of insurers to cyber-attacks is increasing, which is reﬂected in the increased number of these

incidents. Understanding the role of effective risk management and the continuous improvement of digital

resilience are among the decisive factors for successful business performance and maintaining clients’ conﬁdence

in the security of their data processing. A requirement for digital resilience is also the effective management and

limitation of possible ﬁnancial and operational-process effects. The development of regulations also follows these

guidelines. New requirements include EIOPA guidelines on outsourcing to cloud service providers and guidelines

on information and communication technology security management. Additional requirements in this ﬁeld were

speciﬁed by the Regulation of the European Parliament and of the Council on digital operational resilience for the

ﬁnancial sector (DORA).

The Group’s acceptance of challenges and risk management

The Triglav Group incorporates the described changes into the

development of its business operations, which are rapidly being digitalised

and upgraded with other innovations that are the result of the Group’s

strategic development processes. The implementation of an omni-channel

sales approach and paperless and remote operations are at the fore. See

Section

11.2 Transformation and digitalisation

for more information on

development activities. Thanks to the quick launch of solutions such

as remote signing, video identiﬁcation and remote inspection of the

object insured,

business continuity was ensured also in extraordinary

circumstances

, proving that the Group was well-prepared for the transition

to digital business, which is now being expanded and upgraded.

Ensuring adequate cyber resilience and meeting regulatory requirements

are among the Company’s strategic objectives. This is achieved by

keeping the

information security management system and security controls regularly updated,

regularly testing information security

at various levels and verifying recovery procedures

and information systems. The Company’s

security and control centre

continuously

monitors security events and responds to threats 24/7. The Company is introducing new

tools and processes for the comprehensive monitoring and control of information (cyber)

security risks, which, after being implemented in the parent company, are transferred

to other Group members, ensuring their coordinated operation. In this way, the Group’s

security risks are managed more effectively, in addition to actively managing the level

of information security. A new tool for managing all types of operational risks was used

to improve the management of information (cyber) risks, which are regularly included in

stress scenario tests.

The Company is aware that people are the most vulnerable part of information

security, which is why it regularly raises employees’ awareness and educates them

about information security risks and their management. Employee’s level of awareness

is regularly checked, for example through social engineering tests using electronic

communication (a phishing test). Based on these ﬁndings, activities and measures to

improve information security and raise employee awareness are planned.

Before the implementation of new technological solutions, risks are consistently assessed

and a set of measures for their management is designed. New solutions are then veriﬁed

on an ongoing basis, used to measure client satisfaction and then further improved based

on the feedback received. IT solution providers who comply with high security standards

and offer legally compliant solutions for information security and personal data

protection with guaranteed compatibility of services are selected. The risks of outsourcing

ICT services are managed in all contractual stages of the relationship with service

providers. This also applies to the project of developing an integrated sales module.

To better deal with the challenges of remote business and cyber threats, the Company

provides tailored cyber insurance products and related assistance services to its clients.

Digital

transformation

and cyber security

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The impact of the external environment in which the Group operates

and may continue to operate

Concern for sustainable business and the sustainable development of the natural, social and

economic environment ensures the preservation of natural resources and is a prerequisite for

long-term successful business. World population growth and economic development

have led to excessive consumption of limited resources and adverse effects in the form of

climate change. The need for balanced social development, which reduces inequalities in

society and improves the well-being of the most vulnerable social groups, is increasingly

coming to the fore.

Among sustainability aspects, the most pressing in recent times have been

climate change

aspects

. Their impact on the insurance industry is expected both in the investment and

insurance segments as:



the risk of transition to a low-carbon economy,



physical risks due to the increased frequency and severity of extreme weather events.

Measures to mitigate climate change are becoming increasingly important, and with

them the need to adapt operations to reduce transition risk. Any inadequate action in

terms of transition risk may increase physical risks, which will, in turn, mainly result in the greater

frequency and severity of weather disasters and other consequences.

Insurance companies can greatly contribute to an easier and coordinated transition of society to

a low-carbon economy, as they play an important role as institutional investors. In addition to

the implementation of investment policies that take sustainability aspects into account, with

insurance products covering climate change-related perils, they can contribute to a higher level of

safety in terms of physical risks and thereby to a better economic situation.

Physical risks are among the most important long-term challenges for insurance companies, as

they are increasing signiﬁcantly due to the higher average surface temperature and expected

further temperature rises. They are and will continue to result in rising sea levels, more frequent

and longer heat waves, and other extreme weather events. In the region where the Triglav Group

operates, more frequent ﬂoods, drought periods and hailstorms are of particular concern.

The frequency and severity of weather disasters will increase the demand for insurance coverage,

which on the one hand brings new opportunities to expand the volume of business, and on the

other presents a challenge due to the larger scope of required reinsurance coverage. Together with

the ever-increasing frequency and severity of these events, this will put pressure on reinsurance

prices, increase the risk of the non-life insurance portfolio and intensify the insurers’ need for

additional capital.

As the global surface temperature increases, mortality and the likelihood of disease or new epidemics

also increase, which may affect supply and demand of life and health insurance. The emergence

of more extensive and long-lasting disease outbreaks may affect social and economic stability.

Insurers are also exposed to sustainability risks in the investment segment. In terms of

climate change, transition risks are in the foreground. In the short and medium term, they can

signiﬁcantly affect the value of ﬁnancial investments of issuers that are more exposed to climate

risks, either because of the sector in which they operate, or because of the way they operate or

respond to these risks.

The Group’s acceptance of challenges and risk management

Sustainability aspects have traditionally been an important part of the Triglav Group's operations, which are based on responsible

long-term development. Through its activities, the Group has undertaken to reduce uncertainty in the environment, provide its

clients with ﬁnancial and other security and create long-term sustainable value for its shareholders and other stakeholders.

The Group’s sustainability activities have recently been upgraded to implement additional legal

requirements and own guidelines into the Group’s processes and management systems to promote the

transition to a sustainable society.

The Group’s strategic ambitions relating to sustainable development (ESG) deﬁne the key guidelines

for the implementation of business processes in the Group members, engagement with clients and

other stakeholders, and its activities and integration in the community. The Group strives to ﬁnd

sustainable solutions that focus on the efﬁcient use of energy, water and other natural resources as

well as reduce pollution. In its engagement with clients and other external stakeholders, the Group

endeavours to meet the set environmental goals and national and global environmental commitments,

thereby monitoring the direct and indirect impacts of operations on the environment and related

environmental risks. In parallel with developing various types of insurance coverage, the Group aims

to make individuals be more aware of and better understand climate risks, the growing dangers of

natural disasters and other climate change impacts on society. The Group will support the development

of science so as to understand the causes of environmental change and related indicators as well as the development of new

technologies to reduce the negative impacts of economic and social activities on the environment. See Section

12.3 Environmental

aspect

for more information.

The Group’s risk management system was signiﬁcantly upgraded recently. As part of the own risk and solvency assessment process,

particular attention was paid to the identiﬁcation and assessment of climate risks at Group level. Based on the improved quality of

data for climate risk assessment, an in-depth qualitative assessment of climate risks was performed for both assets and liabilities.

It is expected that, in the investment segment of the Group’s business, these risks will be signiﬁcant both in the medium and long

term. The Group’s key task remains to adapt its investment policies to the green transition, which also applies to investment and

pension insurance. With respect to liabilities, physical risk was identiﬁed as the highest short-term climate risk. In Slovenia, the

ﬂood

event is already material. Extraordinary weather events due to climate change will become even more frequent and severe in

the medium and long term, and other perils (hailstorms, drought) will likely have a material effect on the Company’s operations. It

is estimated that transition risk in the Group’s insurance portfolio does not materially affect its operations in the short term, but

with the emergence of legal and technical risks, it may increase in the medium and long term, becoming a material risk.

Based on a qualitative assessment of climate risks, a stress scenario that included transition risk for assets and physical risk for

liabilities was performed. Transition risk could be signiﬁcant, especially in the event that it would affect the economic situation

and thus the ﬁnancial markets. On the other hand, despite the increased severity and/or frequency of weather disasters within

a year, this did not have a noticeable effect on the capital adequacy of the Company’s existing non-life insurance portfolio, primarily

thanks to the adequate reinsurance protection. Ensuring adequate protection will continue to be of key importance in the future,

taking into account changes and limitations to reinsurance terms and conditions.

Sustainability risks also related to the Group’s reputational risk, which arises from the adjustment of operations in relation to

competitors, especially with the growing awareness of society and the importance of sustainability for our stakeholders. These

future potential risks may materialise in the long term and affect all key business processes, acquisition and retention of business

and human resources.

The ever-increasing role of sustainability in business also brings many new opportunities due to both the need for additional

insurance coverage and rapid technological progress and innovations in sustainable technologies.

See Section

12. Sustainable development

at the Triglav Group for more information about sustainability aspects.

Climate change

and sustainable

development

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.1 Triglav Group

Strategy for

2022–2025

In the revised Triglav Group Strategy to 2025,

adopted at the end of 2021, the Group continues

to pursue its existing key strategic guidelines,

upgrading them in terms of growth and

development activities and an improved client-

centric approach.

The strategy focuses on the Group’s sustainable

development ambitions (environmental, social

and governance factors) even more than in

the past. By pursuing these ambitions, a long-

term stable basis is created for the Group’s

proﬁtable and safe operations, promoting the

transition to a sustainable society, reducing

its impact on climate change, remaining

a development-oriented environment for its

employees, maintaining ties with its partners

and representing a stable, safe and proﬁtable

investment for investors.

Triglav Group’s mission, vision and values

GRI 3-3

Mission

Strategic

activities

Insurance



Non-life



Health



Life



Pension



Reinsurance

Asset management



Own insurance portfolio

(asset backing liabilities and

backing funds)



Mutual funds and

individual asset management



Pension funds

Triglav Group will remain leader

in all its core businesses in

Adria region.

Values

Vision

We build a safer future.



We are client-centred.



We support development of our partners.



We provide development-oriented environment for our employees.



We are stable, safe and profitable investment for our investors.

We set standards of outstanding client experience –

anytime, anyplace.

Triglav Group is leading

Insurance and financial group in

Adria region, synonimous with the

best user experience. Through our

operations we are creating

above-average value for our key

stakeholders and promote

transition to sustainable company.

Responsiveness,

simplicity and

reliability

are reflected in our day-to-day operations

The Triglav Group continues to create a highly

effective and service-oriented organisational

culture, which supports strategic business

guidelines, and an organisational environment,

which enables the Group to attract, develop and

retain competent, engaged, healthy and

satisfied employees.

The Triglav Group is an independent insurance

and financial group with high credit ratings,

holding a dominant market position in the Adria

region. Its strategic guidelines are aimed at

achieving a high profit and profitable growth.

The Triglav Group is gradually transitioning from

an insurance-oriented business model to a

mostly service-oriented business model and

ecosystem, which address many interrelated

client needs in terms of insurance products and

assistance and related services.

The Triglav Group continues with its digital

transformation process with the aim of

becoming the leading digitalised insurance and

financial group in the Adria region.

By developing digital services, automating

processes and implementing advanced digital

technologies, it will ensure the best digital user

experience to its clients.

outstanding

client

experience

Development of

organisational

culture

Digital

transformation

Operating

safely and

profitably

The

development of

service-oriented

business models

The Triglav Group’s

strategic indicators in

2022–2025

In terms of financial strategic

indicators, the goal is for

the Group’s total revenue to

exceed EUR 1.6 billion in 2025,

while achieving a 10% return

on equity in this strategy period

(the figures are determined

using the existing IFRS 4

reporting framework).

Triglav

Group’s

strategic

guidelines



Creating a unique client experience across

all channels, processes and products.



A client-tailored range of insurance and

financial products and services.



Focusing on assistance and related services

aimed at developing interrelated ecosystems.

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Strategy and plans of the Triglav Group

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.2 Implementation

of the Triglav Group

strategy in 2022

In the ﬁrst year of implementing the revised

strategy to 2025, the focus was on creating an

exceptional user experience that will be uniform

across all sales channels and for all processes and

products. A client-tailored range of insurance and

ﬁnancial services is being developed, gradually

transitioning from an insurance-oriented

business model to a service-oriented business

model and developing service ecosystems so as

to address even more effectively the various but

interrelated client needs.

The Group continued with its digital

transformation process with the aim of becoming

the leading digitalised ﬁnancial and insurance

group in the Adria region. In order to achieve

the set goals, the Group’s highly effective and

service-oriented organisational culture continued

to be strengthened and co-created by more than

5,300 satisﬁed and dedicated employees.

Operating

safely and

proﬁtably

outstanding

client

experience



Proﬁtable operations and credit rating



Proﬁt before tax: EUR 134.5 million.



Return on equity (ROE): 13.1%.



Afﬁrmed “A” credit rating with a stable medium-term outlook.



Growth in business volume



Gross written premium: +9%.



Total market share of Slovenian insurance companies:

+0.4 percentage point.



Seized opportunities of new business models and partnerships for

doing business outside the region.



The Triglav Group remains the largest insurance company in

South-East Europe (SEE) in terms of written premium.



Capital adequacy and capital allocation



Prudent implementation of the capital management policy.



Market capital was regularly monitored and risks were assessed

by individual activity (insurance business, asset management,

capital management), thereby – despite the challenging

situation in the ﬁnancial markets – maintaining ﬁnancial

strength and capital adequacy, which remains around the lower

end of the target range.



Ensuring safe operations and compliance



Comprehensive review of information systems in terms of

information security.



Support provided to the implementation of accounting standards

IFRS 9 and IFRS 17.



Core and support information systems were upgraded for the

transition to the euro in Croatia.



Growth in business productivity and exploitation of synergies in

the Group



Business productivity: increased by 9%; gross written premium per

employee: EUR 318 thousand.



Transferring good practices among the Group companies and

taking advantage of internal potential.



Increased client satisfaction and loyalty



Higher client satisfaction rating (NPS) compared to the preceding

year: an increase of 4 points.



The adjustment of products and services to changed client needs

and rewarding their loyalty.



The upgrade of the Triglav komplet loyalty programme for

underwriting applications.



Comprehensive and responsible client relationship management and

omni-channel communication



An increased number of clients registered in the i.triglav

application and a higher number of clients who gave their consent

to receive information electronically.



The development of an omni-channel strategy for client

communication management.



Automated connection of the user’s call with their client card for

faster resolution of claims.



The merger of the databases of non-life and life insurance business

partners.



The upgraded process and protocol for roadside assistance enable

guided acceptance of calls for assistance.



The claim reporting process adapted to the “report and repair”

option, a clearly presented assistance service procedure, upgraded

claim applications for centralised claims settlement.



Increased number of active clients, a better understanding of the

Group’s services and higher insurance coverage of individual clients



The TRIA virtual assistant was launched to help clients and website

visitors in answering questions about products and services.



Upgraded websites of all Group insurance companies.



New marketing and sales approaches.



Ongoing measurement and analysis of user experience and

implementation of activities to better understand the Group’s

products and services.

GRI 3-3

Strategy and plans of the Triglav Group

Business Report

Risk Management

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Development of

service-oriented

business models

and digital

transformation



Advanced service-oriented

business models



A central entry communication

point for clients.



Business ecosystems upgraded

with new services and

partnerships and harmonised

with the upgraded Triglav

komplet loyalty programme.



Strengthened partnerships in

the mobility, home, pets and

health ecosystems.



Encouraging the sales network

to sell insurance products

remotely and deliver insurance

documentation electronically.



A high level of business process

digitalisation, optimisation and

automation



Digitalisation of sales processes.



Digitalisation and automation

of claim processes.



Implementation of advanced

analytics and artiﬁcial

intelligence in client service

processes.



A digital ofﬁce and mobile

application for clients.



Realisation of the Group’s key values in relation to all its stakeholders



Exceeded planned strategic indicator of employee satisfaction and

engagement at Group level.



The promotion of teamwork, intergenerational cooperation and

a healthy lifestyle and work practices.



Enhanced agility of employees and their willingness to accept changes.



Building a uniﬁed employer brand



The employer’s brand is being upgraded.



Workshops and focus groups at the Company and Group level.



Uniﬁed human resource information system in Group companies

(Gecko HRM)



Basic human resource modules were implemented.



Development modules are being introduced.



A uniﬁed system for conducting annual development interviews and

a management-by-objectives and remuneration system



Workshops on setting SMART operational and strategic goals for all

leaders.



The module for annual development interviews was transferred to

subsidiaries.



Identifying promising staff and setting up a succession system



A group of promising staff was identiﬁed at Group level as well as their

development opportunities.



First training activities for Group employees and coaching sessions.



Hybrid workspace pilot project (ﬂexible space)



The scope of the pilot project was deﬁned, the participating areas were

identiﬁed and renovation plans were designed for two locations.



Information about working in a hybrid workspace for employees.



Beneﬁts and opportunities for employees



Five programmes adapted to employee groups were developed.

Development

of an

organisational

culture



Insurance and asset management



The share of green, sustainable and

social impact bonds rose to 10%, thereby

demonstrating the Group’s contribution

to a greener, sustainable and fair future.



In the context of its insurance

business, the Group develops

sustainability-oriented products and

services and increases the premium written from products promoting

general social and environmental beneﬁts, including energy efﬁciency

and low-carbon technology.



The Triglav Group’s business processes



The Group actively pursues goals to reduce the carbon footprint of its

operations by reducing energy and paper consumption and the quantity

of waste. The Group’s Scope 1 and Scope 2 carbon footprint decreased by

13% in 2022.



At the end of the year, a sustainable development action plan was

developed for individual areas, which is the basis for implementing

strategic activities and legislative requirements.



In 2022, the Group received for the ﬁrst time a public score for disclosing

according to the CDP questionnaire on climate change.



Raising employee awareness about energy conservation and the

importance of sustainable practices



The share of electric and hybrid vehicles in the Group rose to 8% in 2022.



Responsible stakeholder engagement



A high level of satisfaction among the Group’s employees and clients

was maintained.



In early February 2022, the Insure Our Future project was launched.

Together with partners from the ﬁelds of sport, culture, health, prevention

and the economy, the Group raises awareness of the importance of

achieving the 17 United Nations Sustainable Development Goals.



Increasingly more attention is paid to sustainability aspects when

holding events (Triglav Run, Our Day).



Effective corporate governance



The Group achieves high corporate governance standards, while improving

the public disclosures of its sustainable business and operations.



In early 2022, Zavarovalnica Triglav became a signatory to the United

Nations Principles for Sustainable Insurance (UN PSI) and joined the

Partnership for Carbon Accounting Financials (PCAF).



Support for the process of handling reports of violations and protection

of reporting persons was implemented within the Group.



Within the framework of the Compliance and Sustainable Development

Committee and other committees of the risk management system, the

development and implementation of regulations, including in ESG areas,

is monitored.

Sustainable

development

(ESG) at the

Triglav Group

Strategy and plans of the Triglav Group

Business Report

Risk Management

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.3 Implementation of the Triglav Group’s

business plans in 2022

In the difﬁcult economic situation, the Triglav Group achieved a

proﬁt before tax of EUR 134.5 million

up by 1% relative to 2021 and more than planned. This is the result of good performance and one-

off events (see Section

8. Financial result of the Triglav Group and Zavarovalnica Triglav

for more

information).

Total written premium grew by 9%

to EUR 1,479.6 million,

exceeding the planned ﬁgures

. Premium

growth was recorded in all insurance markets of the Group and in all insurance segments despite the

challenging situation marked by ﬁerce competition. In the Slovenian market, premium grew by 7%,

in other markets in the Adria region by 12% and in the international market by 17%. See Section

7.5 Gross written insurance, coinsurance and reinsurance premiums

for further information on

insurance premium.

The Group’s

combined ratio

reached a favourable

88.1%

, which is in the lower end of its average

target strategic value range (the company’s performance indicator in the core non-life and health

insurance business excluding return on investment). Compared to the previous year, it decreased by

0.8 percentage point as a result of the improved claims ratio. See Section

8. Financial result of the

Triglav Group and Zavarovalnica Triglav

for more information.

The credit rating agencies S&P Global Ratings and AM Best re-afﬁrmed the Group’s

“A” credit rating

with a stable medium-term outlook

, thereby conﬁrming the Group’s

strong ﬁnancial stability, capital

adequacy and proﬁtability

. Achieving an “A” credit rating ensures an appropriate competitive position

of the Group in insurance, reinsurance and ﬁnancial markets as it conﬁrms its ﬁnancial strength and

sound performance. See Section

6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav

for

more information.

4.4 Plans of the Triglav Group for 2023

The Triglav Group business plan for 2023 takes into account strategic starting points and goals,

performance results and implementation of the business plan in 2022, market potential, competitive

conditions, and forecasts of trends in the macroeconomic environment and the ﬁnancial markets.

For the purposes of data comparability, business plans for 2023 were developed using the existing

IFRS 4 reporting framework. This will change with the implementation of the new IFRS 17 accounting

standard in 2023. Upon the implementation of the new accounting standard, adequate information will

be provided regarding its effects on the Group’s key performance categories.

Expected business conditions:

The outlook for 2023 is characterised by great uncertainty, which will

also affect the Group’s operations. The situation on the ﬁnancial and energy markets is particularly

unpredictable, and with the war in Ukraine continuing, it is exacerbating the deterioration of the

economic outlook and contributing to inﬂation. Further growth in required yields on government and

corporate bonds is expected, but not as much as in 2022.

Triglav Group Business Plan for 2023

proﬁt before tax

of EUR 95–110 million is planned for 2023. The planned proﬁt is lower than the

proﬁt for 2022, which was affected by one-off events. In the insurance business, the Group plans

to operate proﬁtably and record a

total written premium

of EUR 1.5–1.6 billion, as well as achieve

a combined ratio

of below 94%

in non-life and health insurance

As the leading insurance and ﬁnancial group in Slovenia and the Adria region, the Group plans to further

strengthen its position in existing markets, while seeking opportunities in the EU markets according to

the principle of free movement of services and through partnerships. In its operations, the Group will

consistently follow its strategic guidelines, focusing on a high-quality and uniform client experience, the

further development of service-oriented business models and ecosystems that address the interrelated

needs of clients, and the implementation of innovative processes using modern technology.

The Group will continue to pursue cost streamlining, effective risk management, ﬁnancial stability and

retain high credit ratings from recognised credit rating agencies. The Company’s dividend policy remains

unchanged, and every effort will be made for the ZVTG share to remain a proﬁtable, safe and stable

investment for investors.

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Corporate Governance Statement



The Group’s corporate governance system was responsive and efﬁcient during

the pandemic. It showed adequate robustness even in a changing business

environment, which is shaped by the broader geopolitical situation.



Blaž Jakič was appointed a Management Board member for a ﬁve-year term of

ofﬁce. The decision will enter into force upon the fulﬁlment of the conditions

precedent, including obtaining the authorisation of the Slovenian Insurance

Supervision Agency to perform the function of a management board member.



The term of ofﬁce the Management Board members Barbara Smolnikar and

David Benedek ended.

5.1 Governance policy

The Company’s reliable governance system, which is based on effective risk management, enables it to

implement its business strategy. The main governance guidelines take into account the set long-term

objectives. They are deﬁned in the Company’s Governance System and Policy. This document, which

is adopted by the Management and Supervisory Boards, is published on SEOnet, the Ljubljana Stock

Exchange information system, and on the Company’s ofﬁcial website (

www.triglav.eu

5.2 Statement of Compliance with

the Slovene Corporate Governance Code

In its operations in 2022, Zavarovalnica Triglav abided by the Corporate Governance Code (hereinafter:

the Code), which was adopted on 9 December 2021 and entered into force on 1 January 2022. The Code

is available on the website of the Ljubljana Stock Exchange (Ljubljanska borza d.d.) at

http://www.ljse.si

in Slovene and English. Zavarovalnica Triglav’s statement of compliance with the Corporate Governance

Code for the period from 1 January 2022 to the day of publication in 2023 is available on SEOnet and

Zavarovalnica Triglav’s ofﬁcial website (

www.triglav.eu

Zavarovalnica Triglav adheres to the provisions of the Code. For well-grounded reasons, the Company

deviated from or did not comply with the following provisions of the Code (as clariﬁed by speciﬁc point

of the Code):



Points 4.1 to 4.3

refer to the Diversity Policy

The Company and its management and supervisory bodies are subject to the Insurance Act and

the Companies Act, which require that the members of the management and supervisory bodies

and the bodies as a whole meet the ﬁt and proper criteria for insurance companies. Zavarovalnica

Triglav has adopted a Diversity Policy, according to which, when several candidates meet the ﬁt

and proper criterion, the candidate who contributes more to the diversity of the Management

Board or the Supervisory Board will have priority. The diversity of expertise and experiences is

set out in greater detail in the Fit and Proper Policy for the Management and Supervisory Board

Members of Zavarovalnica Triglav d.d. The aim of the Diversity Policy is for both genders to be

represented on the management and supervisory bodies. The ratio between the two genders,

which is appropriate given the size of the company and its goals and procedures, is not determined

in advance, as it is ﬁrst necessary to ensure the ﬁtness and propriety of the bodies as a whole, in

accordance with the requirements of the law. When appointing the members of the management

and supervisory bodies, strict legislative regulations applicable to insurance companies and the

regulator’s requirements as regards the ﬁtness and propriety of the candidates for members of the

Management Board and the Supervisory Board must primarily be taken into account. In any case,

when appointing the members of the Management Board and the Supervisory Board, the Company

aims to achieve the greatest possible diversity, including by specifying in the position requirements,

in addition to the ﬁt and proper requirements that candidates must meet, which candidates will

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

have an advantage in terms of diversity (e.g. gender, age, nationality). The Diversity Policy does not

set goals for each individual aspect of diversity and for each body separately, but it does determine

the way to ensure diversity as mentioned above and, as a result, has a direct impact on personnel

procedures and other processes in the Company.



Point 5.6

refers to an external assessment of the appropriateness of the Corporate Governance Code by

an independent institution

The Corporate Governance Statement, as part of the annual report, is reviewed annually by an

independent external auditor. Zavarovalnica Triglav is a regulated company whose operations are

supervised by the Insurance Supervision Agency. In parallel, internal audit is established as one

of its key functions, which not only performs continuous and comprehensive supervision of the

Company’s operations but also veriﬁes and assesses whether the processes of risk management,

control procedures and management of the Company are appropriate.



Points 7.1 to 7.4

refer to the development of the Sustainable Development Policy

It is planned that Zavarovalnica Triglav will develop an overarching sustainability policy by 31 March

2023. In 2021, the Company upgraded its sustainability orientation in environmental, social and

governance areas by adopting the Triglav Group’s strategic ambitions in sustainable development

(ESG), which was approved by the Supervisory Board. At Group level, sustainability-related activities

are coordinated and directed by the Sustainable Development Coordinator, monitored by the

Compliance and Sustainable Development Committee and decided on by the parent company's

Management Board. The ambitions regarding the ESG goals for 2025 are divided into four key areas:

insurance and asset management, Triglav Group‘s business processes, responsible stakeholder

engagement and effective corporate governance. The Commitment to respect human rights in

business operations was incorporated into the business processes, with which the Triglav Group

undertakes to respect human rights in the entire business process and to avoid and prevent any

adverse effects in ensuring human rights.



Point 16.4

stipulates that at least once in every three years the supervisory board should ensure an

external assessment in which it cooperates with an institution or external experts

Each year, the Supervisory Board, with the assistance of competent departments, carries out self-

assessment of its work and the work of its committees and draws up a report. It takes a position on

this and adopts an action plan to improve its functioning. At its discretion, the Supervisory Board

also performs external assessment, in which it cooperates with relevant external experts.



Point 21.6

refers to the prior approval of the Supervisory Board before the appointment of the

members of the Management Board to the management or supervisory bodies in other companies

Pursuant to the resolution of the Supervisory Board, the members of the Management Board do

not require the approval of the Supervisory Board prior to their appointment to the management

or supervisory bodies of Zavarovalnica Triglav’s direct and indirect subsidiaries and associates;

however, the Management Board members promptly inform the Supervisory Board in writing about

their appointment in accordance with point 1 of paragraph two of Article 62 of the Insurance Act

(ZZavar-1).

GRI 2-9



Point 25

stipulates that all supervisory board and committee members are independent

Two members of the Supervisory Board, both employee representatives, are not considered

independent in accordance with point g) of Appendix B of the Code,

as they have served on the Supervisory Board for more than three terms.

In addition, the Company is bound by the principles of the Insurance Code in its operations and

conduct, which is available on the Slovenian Insurance Association’s website (

www.zav-zdruzenje.si

The Company also has its own code, which presents its fundamental values and business principles in

order to achieve its business objectives, strategic guidelines and competitive advantages in a fair and

transparent manner and in compliance with the law and ethics. It is published on the Company’s ofﬁcial

website (

www.triglav.eu

The Statement of compliance with the Slovenian Corporate Governance Code is available both on

SEOnet and the Company’s ofﬁcial website (

www.triglav.eu

5.3 Management bodies of Zavarovalnica Triglav

The Company has a two-tier governance system in place. Its governance bodies are as follows:

General Meeting of Shareholders

Management Board

and

Supervisory Board

. They operate in

compliance with the primary and secondary legislation, the Articles of Association and adopted

rules of procedure. Zavarovalnica Triglav’s Articles of Association are published on its ofﬁcial website

(

www.triglav.eu

5.3.1 General Meeting of Shareholders

The shareholders of Zavarovalnica Triglav exercise their rights at the General Meeting of Shareholders,

which is convened at least once a year, by the end of August at the latest. The General Meeting

of Shareholders may also be convened in other circumstances provided by law and the Articles of

Association, and when it is in the interest of the Company.

The powers and operation of the General Meeting of Shareholders are set out in the Companies Act

and the Articles of Association. The latter does not lay down any speciﬁc provisions for the adoption

of amendments.

Each share of Zavarovalnica Triglav gives its holder the right to:



one vote at the General Meeting of Shareholders,



proportional dividends from the proﬁt intended for the dividend payment and



a proportional share from the remaining bankruptcy or liquidation estate in the event of bankruptcy

or liquidation.

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

All shareholders who are entered in the share register managed by KDD

– Centralno klirinška depotna družba d.d. not later than by the end of the

seventh day before the date of the General Meeting of Shareholders have

the right to attend the General Meeting. They may exercise their voting right

provided that they register their attendance not later than by the end of the

fourth day before the date of the General Meeting of Shareholders.

The rights and obligations attached to the shares as well as the notes on

the restriction of transfer of shares and on reaching a qualifying holding are

described in Section

6.2 Equity

. See the Insurance Act for further details.

In accordance with the Financial Instruments Market Act, the following three

shareholders of Zavarovalnica Triglav hold a qualifying holding (as at 31

December 2022):



Zavod za pokojninsko in invalidsko zavarovanje Slovenije (Institute of

Pension and Invalidity Insurance of Slovenia; hereinafter: ZPIZ) is the

direct holder of 7,836,628 shares or 34.47% of the Company’s share

capital. Its stake remained unchanged in 2022. On behalf and for the

account of ZPIZ, the shareholder’s rights attached to the shares were

managed by Slovenski državni holding d.d. (hereinafter: SDH).



SDH is the direct holder of 6,386,644 shares or 28.09% of the Company’s

share capital. Its stake remained unchanged in 2022.



Erste Group Bank – PBZ Croatia Osiguranje OMF account – a ﬁduciary

account, Vienna, holds 1,526,190 shares or 6.71% of the Company’s

share capital.

According to the data available, as at the reporting date Zavarovalnica

Triglav had no other shareholders whose interests exceeded 5.00% of the

share capital, nor any issued securities that would grant their holders special

control rights

General Meeting of Shareholders in 2022

Zavarovalnica Triglav’s shareholders held one general meeting in 2022. The

total number of shares and voting rights represented at the 47th General

Meeting of Shareholders, held on 24 May 2022, was 17,439,358 or 76.97%

of all shares to which the voting rights are attached. The General Meeting of

Shareholders was briefed on:



Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2021,



the opinion on the annual report given by the audit ﬁrm,



Annual Internal Audit Report of the Internal Audit Department of

Zavarovalnica Triglav d.d. for 2021,

Two-tier governance of Zavarovalnica Triglav

General Meeting

of Shareholders

Supervisory Board

Management Board

members

-year term of office

members

-year term of office

of all voting rights

at the 47

General

Meeting of Shareholders

76.97%



Report of the Supervisory Board of Zavarovalnica Triglav d.d.

on the Veriﬁcation of the Annual Report of the Triglav Group

and Zavarovalnica Triglav d.d. for 2021,



Opinion of the Supervisory Board on the Annual Internal

Audit Report of the Internal Audit Department of

Zavarovalnica Triglav d.d. for 2021.

The shareholders approved Zavarovalnica Triglav’s

remuneration report for 2021, whereas the consultative

resolution on its remuneration policy was not adopted. The

remuneration policy complies with the law, but it is not fully in

line with the recommendations of the shareholder SDH, which

were published on 16 March 2022 and will be examined by the

next regular General Meeting of Shareholders.

The shareholders adopted a resolution on the following

distribution of the accumulated proﬁt of EUR 87,660,380.45 as

at 31 December 2021:



A part of accumulated proﬁt in the amount of EUR

84,120,047.60 shall be allocated for dividend payments. The

dividend of EUR 3.70 gross per share shall be paid to the

shareholders appearing in the share register as at 7 June

2022. As at 8 June 2022, the Company provided funds

for the payment of all dividends to the account of KDD –

Centralno klirinška depotna družba d.d.



The distribution of the remaining accumulated proﬁt of EUR

3,540,332.85 shall be decided in the next few years.

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The shareholders granted a discharge for the 2021 ﬁnancial year to both the Management Board and

the Supervisory Board of Zavarovalnica Triglav.

The General Meeting of Shareholders appointed the audit ﬁrm Deloitte revizija d.o.o., Ljubljana the

auditor of Zavarovalnica Triglav for the 2022, 2023 and 2024 ﬁnancial years.

5.3.2 Management Board

The Management Board manages the Company independently and at its own responsibility, and

presents and represents the Company without limitations. In legal transactions, the Company is always

jointly presented and represented by two members of the Management Board, one of whom is its

President.

According to the Solvency II Directive requirements, all persons who manage an insurance undertaking

must have adequate professional qualiﬁcations (ﬁt) and be appropriate to perform this function, i.e.

be of good reputation and integrity (proper). The ﬁt and proper assessment of the Management Board

members is carried out based on national legislation and internal regulations.

Any person fulﬁlling the requirements stipulated by the Insurance Act, the Companies Act and the

applicable documents of the Company may be appointed to the Management Board as its President or

member. The ﬁt and proper criteria, which the Management Board members and other individuals are

required to meet, are clearly deﬁned in the Fit and Proper Policy for the Management and Supervisory

Board Members of Zavarovalnica Triglav d.d., which sets out the ﬁt and proper assessment procedure

for individual Management Board members to be performed before their appointment, periodically,

extraordinarily or after the appointment of an individual Management Board member. Furthermore,

the policy determines the ﬁt and proper assessment criteria and procedures for the Management Board

as a collective body. With respect to the latter, the Supervisory Board takes into account the diversity

of knowledge and competences, which not only allow comprehensive functioning of the Management

Board, but also contribute to an appropriate variety of skills, knowledge and experience for professional

management of the Company. All members are required to collectively possess the relevant knowledge

and experience relating to insurance and ﬁnancial markets, the business strategy and business models,

governance systems, ﬁnancial and actuarial analyses, risk management, and the regulatory and legal

environment in which the Company operates.

In October 2022, a preliminary ﬁt and proper assessment of Blaž Jakič as a new Management Board

member took place. In November 2022, the existing Management Board members (Andrej Slapar, Tadej

Čoroli, Uroš Ivanc, Marica Makoter and David Benedek) and the Management Board as a collective body,

also excluding David Benedek, were subject to periodic assessment.

The Diversity Policy is also taken into account when appointing an individual member of the

Management Board. Its aim is to ensure complementarity and diversity in the Management Board

by taking into account various qualiﬁcations, experiences and knowledge as deﬁned in the Fit and

Proper Policy for the Management and Supervisory Board Members of Zavarovalnica Triglav d.d. as

well as to achieve gender balance and representation of various age groups. The gender balance in

the Management Board, which is appropriate to the Company’s size, the objectives it pursues and

the procedures for selecting management body members and other procedures in the Company, is

not predetermined. If several candidates meet the ﬁt and proper criterion, the candidate who will

contribute more to greater diversity of the Management Board will have priority. One of the important

goals is that both genders are represented in the management body. A comprehensive approach

enables prudent and careful management of the Company, thus achieving strategic objectives and

ensuring long-term values for all key stakeholders.

At its session on 17 October 2022, the Supervisory Board of Zavarovalnica Triglav agreed with the

proposal of the President of the Management Board to appoint Blaž Jakič a new Management Board

Member and approved the agreement on the termination of the term of ofﬁce of the Management

Board Member David Benedek. Blaž Jakič was appointed for a ﬁve-year term of ofﬁce. The decision will

enter into force upon the fulﬁlment of the conditions precedent, including obtaining the authorisation

of the Slovenian Insurance Supervision Agency to perform the function of a management board

member. The term of ofﬁce of the Management Board member David Benedek ended on 1 December

2022 by mutual agreement, while the ﬁve-year term of ofﬁce of the Management Board member

Barbara Smolnikar ended on 17 October 2022.

Composition and appointment of the Management Board

In accordance with the Company’s Articles of Association, the Management Board has no less

than three and no more than six members, one of whom one is the president. The number of the

Management Board members, their powers, the manner of representation and presentation and the

transfer of the Management Board’s authorisations are determined by the Supervisory Board in the

Management Board Rules.

The Management Board is appointed by the Supervisory Board. The term of ofﬁce of individual

Management Board members is up to ﬁve years, with the possibility of reappointment without

limitation. Zavarovalnica Triglav has one Worker Director, who is a member of the Management Board.

The appointment or recall of an individual member or all members of the Management Board is

proposed to the Supervisory Board by the President of the Management Board. Any individual member

or President of the Management Board may be dismissed also by the Supervisory Board if legal grounds

for their dismissal have been established.

5.3.2.1 Management Board’s powers to increase the share capital

In accordance with the Company’s Articles of Association, the Management Board is authorised to

increase the share capital of Zavarovalnica Triglav by up to EUR 14,740,278.36 through new shares

issued for cash contributions within ﬁve years of 28 May 2021. The issue of new shares, the amount

of capital increase, the rights attached to the new shares and the conditions for issuing new shares

are decided upon by the Company’s Management Board with the consent of the Supervisory Board.

Following a share capital increase, the Supervisory Board is authorised to amend the Company’s Articles

of Association.

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

First and last name

Function

Area of work in the Management Board

(as at 31 December 2022)

Start of term of

ofﬁce (the ﬁrst)

End of term of

ofﬁce

Gender

Nationality

Date

birth

Education

Professional proﬁle

Membership in the supervisory

and/or management bodies of

other companies

Andrej Slapar

President

Manages and directs the work of the Management Board and

head ofﬁce support departments (the Management Board

Ofﬁce, the Legal Ofﬁce, the Internal Audit Department, the

Corporate Communication Department and the Compliance

Ofﬁce). In charge of the Corporate Accounts Division, the

Non-Life Insurance Division, the Triglav Group Subsidiary

Management Division (excluding the subsidiaries outside

Slovenia), HR matters related to the employees with special

powers, arbitration, Nuclear Pool and the economic interest

grouping of Slovenian insurance companies. Also responsible

for the drawing up and implementation of the strategy of

Zavarovalnica Triglav and the Triglav Group.

22 May 2013

12 November 2024

Male

Slovenian

1972

LL.B.

Management, strategic

management, commercial law,

insurance and reinsurance,

actuarial science

Uroš Ivanc

Member

In charge of the Non-Life Insurance Actuarial Department,

the Life Insurance Actuarial Department, the Accounting

Division, the Finance and Controlling Division, excluding

the Investment Department, the Triglav Group Subsidiary

Management Division – the subsidiaries outside Slovenia

and the Investment Department (a head ofﬁce support

department). Also responsible for mergers and acquisitions

(M&A), investor relations (IR) and relations with credit rating

agencies, as well as for environmental, social and corporate

sustainable development (ESG) activities.

14 July 2014

15 July 2024

Male

Slovenian

1975

MSc in

Business and

Organisation

Management and organisation,

strategic management,

insurance, ﬁnancial

management, ﬁnancial

markets and analyses, asset

management, risk management

Trigal, upravljanje naložb in svetovalne

storitve d.o.o.

Triglav, Zdravstvena zavarovalnica d.d.

Triglav INT d.o.o.

Triglav Osiguranje, Zagreb d.d.

(from 1 July 2022)

Tadej Čoroli

Member

In charge of the Marketing Division, the Non-Life Insurance

Claims Division, the Insurance Sales Division, the Digital

Operations and Client Experience Division, the Digital Platform

and Business Intelligence Division, the Life Insurance Division,

the IT Division and the head ofﬁce support departments: the

Risk Management Department and the Bancassurance Section.

29 July 2014

30 July 2024

Male

Slovenian

1975

LL.M.

Management, strategic

management, commercial law,

insurance, marketing

Pozavarovalnica Triglav Re d.d.

Marica Makoter

Member and

Worker Director

Represents the workers’ interests as set out in the Worker

Participation in Management Act. In charge of the Fraud

Prevention, Detection and Investigation Department and

the Change and Project Portfolio Management Department.

Responsible for the Back Ofﬁce Division and the Human

Resource Management Division (excluding HR matters related

to the employees with special powers). Also responsible for

the Strategic Sourcing Department and the Money Laundering

Prevention Department (head ofﬁce support departments).

21 December 2011

23 December 2026

Female

Slovenian

1972

LL.B.

Management, strategic

management, commercial law,

insurance, human resources

and organisation, worker

representation

Triglav Skladi d.o.o.

Barbara Smolnikar

Member

17 October 2017

17 October 2022

Female

Slovenian

1967

PhD in

Management

Management, strategic

management, banking,

bancassurance, ﬁnancial markets

and analyses, risk management

Triglav, pokojninska družba d.d

(until 17 October 2022)

David Benedek

Member

29 August 2019

1 December 2022

Male

Slovenian

1973

MSc in

Business and

Organisation

Management, strategic

management, banking,

insurance, ﬁnancial markets and

analyses, corporate governance

Triglav Osiguranje, Zagreb d.d.

(until 30 June 2022)

Trigal, upravljanje naložb in svetovalne

storitve d.o.o. (until 16 November 2022)

Triglav, Upravljanje nepremičnin d.o.o.

(until 16 November 2022)

Triglav Skladi d.o.o. (until 16 November 2022)

Diagnostični center Bled d.o.o.

(until 16 November 2022)

5.3.2.2 Presentation of the Management Board, its functioning and powers

Composition of the Management Board in 2022

Andrej Slapar took over the position of the President of the Management Board nine years ago, and in 2022 all

members of the Management Board (together) performed their function for an average of seven years.

GRI 2-11, 2-12, 405-1, SASB: FN-AC-330a.1

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Data on the remuneration of the Management Board members

Data on the remuneration of the Management Board members are disclosed in Section

5.8 of the

Accounting Report

. The basis for the remuneration of the Management Board is the Remuneration

Policy of Zavarovalnica Triglav d.d. (hereinafter: the Remuneration Policy), which is based on Directive

2009/138/EC – Solvency II, as amended by Directive 2012/23/EU, and Commission Delegated

Regulation (EU) 2015/35 supplementing Directive 2009/138/EC.

The remuneration of the Management Board members consists of the basic salary (ﬁxed part) and

a variable part of the salary. The basic salary of the President of the Management Board is set as ﬁve

times the average gross salary of employees in Group companies in Slovenia, and the basic salary of

the Management Board members is set at 95% of the basic salary of the President of the Management

Board. The President and members of the Management Board are entitled to the variable part of up

to 30% of the basic salaries paid annually provided that the Triglav Group not only generated proﬁt

in the previous year but also surpassed the set objectives. The achievement of annual and medium-

term objectives and the assessment of the Management Board members’ work according to adopted

criteria is monitored by the Supervisory Board. Both ﬁnancial criteria (e.g. premium, claims, costs, proﬁt)

and non-ﬁnancial criteria (compliance, client satisfaction – NPS, employee satisfaction, achievement

of ethical and sustainability standards) are taken into account. The amount of remuneration and the

Remuneration Policy are approved by the General Meeting of Shareholders.

The Remuneration Policy is designed to ensure the maintenance of appropriate capital strength of the

Company, to encourage reliable and effective risk management, and to provide for the acquisition and

retention of appropriately professionally qualiﬁed, competent, responsible and engaged employees.

The policy is the foundation for implementing a robust and reliable governance system, ensuring

responsible long-term development and business integrity and transparency. In 2021, it was revised in

accordance with the requirements of the Regulation on sustainability‐related disclosures in the ﬁnancial

services sector. In accordance with the Triglav Group’s strategic ambitions in sustainable development

(ESG), the succession policy, the diversity policy and the remuneration policy for the Group companies’

management members will be upgraded with environmental, social and governance factors.

5.3.3 Supervisory Board

The Company’s conduct of business is supervised by the Supervisory Board, which is composed of nine

members: six shareholder representatives and three employee representatives. Their term of ofﬁce is

four years, and they can be re-elected without a term limit.

Shareholder representatives are elected by the General Meeting of Shareholders and employee

representatives by the Company’s Works Council. The Chairman and Vice Chairman of the Supervisory

Board are elected from among its members representing shareholders. The appointment and dismissal

of the Supervisory Board members is made in accordance with the applicable legislation and Company

regulations. The General Meeting of Shareholders may dismiss any elected Supervisory Board member

before the expiry of their term of ofﬁce, while each Supervisory Board member may resign from their

position under the conditions and in the manner laid down by the Articles of Association.

According to the Solvency II Directive requirements, the Supervisory Board members must have

adequate professional qualiﬁcations (ﬁt) and be appropriate to perform this function, i.e. be of good

reputation and integrity (proper). Their ﬁt and proper assessment is carried out based on national

legislation and internal regulations.

The criteria as set out in the Fit and Proper Policy for the Management and Supervisory Board Members

of Zavarovalnica Triglav d.d. also apply to both the Supervisory Board as a collective body and to

individual Supervisory Board members. Fit and proper assessment is made before the appointment,

periodically, extraordinarily or after the appointment of an individual Supervisory Board member. In

accordance with this policy, a periodic ﬁt and proper assessment was carried out in November 2022 for

all Supervisory Board members and the Supervisory Board as a collective body. All individual members

were assessed as ﬁt and proper, with the exception of Branko Bračko, for whom it was not yet possible

to provide a ﬁnal periodic ﬁt and proper assessment as a Supervisory Board member. In the same

way, a periodic ﬁt and proper assessment the Supervisory Board as a collective body was carried out,

excluding Branko Bračko.

In assessing its composition and performance in accordance with the Insurance Act and the Companies

Act, the Supervisory Board takes into account that all members possess the relevant knowledge, skills

and experience relating to insurance and ﬁnancial markets, the business strategy and business models,

governance systems, ﬁnancial and actuarial analyses, risk management, and the regulatory and legal

environment in which the Company operates. In addition to the above, if several candidates meet the ﬁt

and proper criterion, the Diversity Policy is taken into account in the appointment of new members. Its

goal is to ensure complementarity and diversity in the Supervisory Board by taking into account various

qualiﬁcations, experience and knowledge deﬁned in the Fit and Proper Policy for the Management and

Supervisory Board Members of Zavarovalnica Triglav d.d. This enables prudent and careful supervision

of the Company, thereby achieving strategic objectives and ensuring long-term values for all key

stakeholders, representation of both genders and representation of different age groups. The gender

balance in the supervisory body, which is appropriate to the Company’s size, the objectives it pursues

and the procedures for selecting supervisory body members and other procedures in the Company,

is not predetermined, because in accordance with the law it is ﬁrst necessary to ensure that the

composition of the Supervisory Body as a whole is ﬁt and proper.

On 9 December 2022, the Supervisory Board members Branko Bračko and Peter Kavčič notiﬁed

the Company of their resignation as Supervisory Board members. In order to ensure the proper

implementation of the nomination procedures, they are submitting an irrevocable letter of resignation

effective as of the date on which the Supervisory Board approves the Annual Report of the Triglav Group

and Zavarovalnica Triglav d.d. for 2022, or as of 31 March 2023 at the latest. The effective date of their

resignation and termination of their term of ofﬁce as Supervisory Board members will be the date of the

regular annual General Meeting of Shareholders (which, according to the Company’s ﬁnancial calendar,

is planned to take place on 6 June 2023), but not later than 30 June 2023.

5.3.3.1 Powers of the supervisory Board

The powers and operation of the Supervisory board are set out by the applicable legislation, the

Company’s Articles of Association and the Rules of Procedure of the Supervisory Board (available

www.triglav.eu

). Besides the powers speciﬁed in the Companies Act and the Insurance Act, the

Supervisory Board has the power to give consent to the decisions of the Management Board where the

value or an investment exceeds the amount set out in the Rules of Procedure of the Supervisory Board,

i.e. in the event of:



the founding of limited companies in Slovenia and abroad;



the acquisition or sale of Zavarovalnica Triglav’s participating interests in domestic or foreign

companies, except in the case of participating interests for which the conventional portfolio

management approach is used;



the issue of debt securities and long-term borrowing from domestic or foreign banks;



the acquisition and sale of real property and investment in real property of Zavarovalnica Triglav.

In accordance with the law and the Rules of Procedure, the Supervisory Board holds at least one session

per quarter, or more if necessary.

GRI 2-18, 2-19, 2-20, 2-21

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.3.3.2 Supervisory Board in 2022

Composition of the Supervisory Board in 2022

First and last

name

Function

Start of

term of ofﬁce

(the ﬁrst)

End of

term of ofﬁce

Attendance of sessions

of the Supervisory

Board/total number of

Supervisory Board sessions

Gender

Nationality

Year of

birth

Education

Professional proﬁle

Independence

pursuant to

Article 23 of

the Corporate

Governance Code

Composition of

the Supervisory

Board in 2022

Membership in the supervisory

and/or management bodies of

other companies while serving on

the Supervisory Board in 2022

Membership in

Supervisory Board

committees

Function in

Supervisory Board

committees

Attendance of meetings

of Supervisory Board

committees/total number

of meetings of Supervisory

Board committees

Andrej Andoljšek

Member

13 June 2017

13 June 2021

8 of 8

Male

Slovenian

1970

BSc in Economics

Financial and general management, ﬁnancial markets and

analyses, banking, corporate governance, business and

ﬁnancial restructuring of companies

YES

Sava d.d.

Strategy Committee

Member

2 of 2

Vice Chairman

21 June 2017

17 August 2020

Nomination Committee

Chairman

18 August 2020

13 June 2021

Member

14 June 2021

14 June 2025

Chairman

18 June 2021

14 June 2025

Branko Bračko

Member

14 June 2021

14 June 2025

8 of 8

Male

Slovenian

1967

BSc in Mechanical Engineering

Business strategy and business models, governance

system

YES

Stanovanjsko podjetje Konjice d.o.o.

Strategy Committee

Chairman

2 of 2

Vice Chairman

18 June 2021

14 June 2025

Tomaž Benčina

Member

14 June 202

14 June 2025

8 of 8

Male

Slovenian

1965

BSc in Economics and BSc in Metallurgy

Financial markets, business strategy and business models,

governance system, ﬁnancial analyses

YES

Luka Koper d.d.

Appointment and

Remuneration Committee

Chairman

7 of 7

Peter Kavčič

Member

14 June 2021

14 June 2025

8 of 8

Male

Slovenian

1969

MSc in International Business

Financial markets, business strategy and business models,

governance system, ﬁnancial analyses

YES

Mladinska knjiga založba d.d.

Audit Committee

Chairman

6 of 6

Strategy Committee

Member

2 of 2

Igor Stebernak

Chairman

18 August 2016

2 June 2020

8 of 8

Male

Slovenian

1968

BSc in Electrical Engineering, MBA

Banking, insurance, strategic management, ﬁnancial

markets and analyses, controlling, accounting and

business process reengineering

YES

Audit Committee

Member

6 of 6

Member

3 June 2020

3 June 2024

Jure Valjavec

Member

14 June 2021

14 June 2025

8 of 8

Male

Slovenian

1975

Master of Science

Business strategy and business models, governance

system

YES

Appointment and

Remuneration Committee

Member

7 of 7

Nomination Committee

Member

Peter Celar

Member

29 May 2007

31 May 2019

8 of 8

Male

Slovenian

1958

BSc in Economics

Insurance, management systems, regulatory and other

legal requirements that apply to Zavarovalnica Triglav

Appointment and

Remuneration Committee

Member

7 of 7

1 June 2019

1 June 2023

Branko Gorjan

Member

14 March 1995

30 May 2015

8 of 8

Male

Slovenian

1960

Economic technician

Insurance, management systems, regulatory and other

legal requirements that apply to Zavarovalnica Triglav

Strategy Committee

Member

2 of 2

1 June 2019

1 June 2023

Igor Zupan

Member

27 September 2019

1 June 2023

8 of 8

Male

Slovenian

1972

BSc in Organisation

Insurance, management systems, regulatory and other

legal requirements that apply to Zavarovalnica Triglav

YES

Audit Committee

Member

6 of 6

Nomination Committee

Member

First and last name

Supervisory Board

committee

Attendance of meetings

of Supervisory Board

committees / total number

of committee meetings

Gender

Nationality

Education

Year of birth

Professional proﬁle

Membership in the supervisory

bodies of other companies while

serving on a Supervisory Board

committee in 2021

Luka Kumer

Audit Committee

6 of 6

Male

Slovenian

BSc in Economics

1981

Financial markets, business strategy

and business models, governance

system, ﬁnancial analyses

Mitja Svoljšak

Nomination Committee

Male

Slovenian

BSc in Economics

1974

Corporate ﬁnance, asset management

Cinkarna Celje d.d.

External members of Supervisory Board committees in 2022

By signing the Statement of Independence and Loyalty (

www.triglav.eu

), the members of the Supervisory Board undertook

to adhere to the principles of independence laid down in item B of the Annex to the Corporate Governance Code.

Data on the remuneration of the Supervisory Board members are disclosed in Section

5.8 of the Accounting Report

. Their

remuneration was in line with the resolution passed by the 42nd General Meeting of Shareholders of Zavarovalnica Triglav.

GRI 2-15, 405-1, SASB: FN-AC-330a.1

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Supervisory Board

5.3.3.3 Composition of Supervisory Board committees and their activities in 2022

In 2022, the Supervisory Board committees were the following: the Audit Committee, the Appointment

and Remuneration Committee, the Strategy Committee and the Nomination Committee was

established as an ad-hoc committee. Supervisory Board committees prepare draft resolutions for the

Supervisory Board, assure their implementation and carry out other tasks.

The duties and powers of the committees are set out in the Companies Act, the Rules of Procedure

of the Supervisory Board, Supervisory Board resolutions and the rules of procedure of individual

committees. Their main tasks are presented in the diagram below.

In 2022,

the Audit Committee

was composed of Peter Kavčič as chair and Igor Stebernak, Igor Zupan and

Luka Kumer, an independent external expert, as members.

The Appointment and Remuneration Committee

had the following composition: Tomaž Benčina as

chair and Jure Valjavec and Peter Celar as members.

The Strategy Committee

was composed of Branko Bračko as chair and Andrej Andoljšek, Peter Kavčič

and Branko Gorjan as members.

The Nomination Committee

as an ad-hoc committee was established on 21 December 2022 due to the

submission of resignation letters of the Supervisory Board members Branko Bračko and Peter Kavčič. The

Committee will operate until the election of new Supervisory Board members – shareholder representatives

at the General Meeting of Shareholders, but not later than 6 June 2023. It is composed of Andrej Andoljšek

as chair, Jure Valjavec and Igor Zupan as members, and Mitja Svoljšak as the external member.

The Supervisory Board committees and their main tasks

Audit Committee



monitors the ﬁnancial reporting process,

draws up reports and proposals for ensuring its

comprehensiveness;



monitors the efﬁciency and effectiveness of internal

controls, internal audit and risk management systems;



monitors the mandatory audit of annual and

consolidated ﬁnancial statements and reports on

the audit ﬁndings to the Supervisory Board;



is in charge of the auditor selection procedure,

proposes a candidate to the Supervisory Board to

audit the Company’s annual report and participates

in the drafting of an agreement between the

auditor and the Company;



monitors the quality of the auditor's audit in

accordance with the Guidelines for audit committees

for monitoring the quality of external auditing

adopted by the Agency for Public Oversight of

Auditing and the Slovenian Directors' Association;



supervises the integrity of ﬁnancial information

provided by the Company, evaluates the drafting of

the annual report and draws up a proposal for the

Supervisory Board;



cooperates with the Internal Audit Department,

monitors its interim reports, examines the internal

documents of the Internal Audit Department, the

Rules of the Internal Audit Department and the

annual plan of the Internal Audit Department;



discusses decisions on the appointment,

dismissal and remuneration of the head of the

Internal Audit Department.

Strategy Committee



discusses and draws up proposals for the

Supervisory Board regarding the Triglav Group

strategy;



monitors the implementation of the strategy;



discusses and draws up proposals and opinions

for the Supervisory Board related to the strategic

development or planning of the Triglav Group.

Appointment and Remuneration Committee



proposes criteria for membership in the

Management Board;



proposes the policies of remuneration,

reimbursement and other beneﬁts for the

Management Board members;



preliminary considers the proposals of the

President of the Management Board related to the

management of the Company;



performs ﬁt and proper assessments of

the Management Board and Supervisory

Board members;



provides support and makes proposals on matters

related to the Supervisory Board (e.g. conﬂicts

of interest, design and implementation of

a remuneration system for the Supervisory Board

members, assessment of the Supervisory Board’s

work pursuant to the Code of Corporate Governance).

Nomination Committee

(an ad-hoc committee established to carry out

a nomination procedure for the candidates for members

of the Supervisory Board, shareholder representatives)



prepares criteria for the selection of candidates for

members of the Supervisory Board, shareholder

representatives, unless the Supervisory Board

determines otherwise;



registers the candidates for members of the

Supervisory Board;



instructs the Appointment and Remuneration

Committee to carry out a ﬁt and proper assessment

of the candidates;



submits to the Supervisory Board a proposal to

nominate one or several candidates for Supervisory

Board members – shareholder representatives,

including the draft ﬁt and proper assessment of the

candidates for members of the Supervisory Board.

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.4 Governance and management of subsidiaries

The Triglav Group is comprised of Zavarovalnica

Triglav as the controlling company and its

subsidiaries and associates. The subsidiaries

operate as independent legal entities in

accordance with the applicable local legislation,

resolutions passed by their general meetings

and their management and supervisory bodies,

business cooperation agreements (if any) and

other internal documents implemented by

individual subsidiaries.

The governance policy of the Triglav Group’s

subsidiaries

, which is the basis for the

establishment and implementation of a robust

and reliable governance system, was revised

in 2022. The main objective of the Group's

governance system is to implement uniform

minimum standards for core business activities,

reporting and supervision at Group level. The

policy is designed to establish an internally

consistent governance system of the Group by

standardising and harmonising the rules and

procedures in individual business segments

within subsidiaries. The policy takes into account

both the Group’s strategic objectives and local

legislation and regulatory requirements, the

business environment of subsidiaries and good

business practices.

Corporate governance and business

management are used to govern the Group’s

subsidiaries. In corporate governance, the

management rights are exercised in compliance

with the law applicable to individual subsidiaries,

taking into account their internal regulations.

Business management is carried out via

mechanisms for effective business supervision

and cooperation in all business segments,

harmonisation of business standards and

mutual information of the Group’s subsidiaries.

This approach also comprises business and

professional coordination of activities within

the Group, as well as holding various training

courses with an aim to unify business processes,

coordinate key functions and transfer know-how,

corporate culture and good practices.

Zavarovalnica Triglav as the controlling company

actively manages its direct subsidiaries, while

subsidiaries assume responsibility for the

transfer of the governance system and active

management of their subsidiaries. The methods

of transferring the system and carrying out the

activities are deﬁned in the minimum standards

for individual business segments, which were

thoroughly revised in 2022. Their implementation

in individual subsidiaries is monitored by the

competent business areas of the parent company,

connecting the subsidiaries’ business functions

with Zavarovalnica Triglav’s business segments

and providing a comprehensive overview at

Group level.

Based on experience in achieving strategic

objectives, it was estimated that the governance

system of the Group’s subsidiaries functioned

appropriately during the pandemic and is

suitably robust even in the changing business

environment deﬁned by the broader geopolitical

situation. A responsive and effective subsidiary

governance system continued to ensure

prompt identiﬁcation of events in the business

environment, optimisation of subsidiaries’

operations and implementation of the outlined

strategy. Furthermore, identiﬁcation of business

opportunities and challenges both in the local

and wider environment was encouraged in line

with the strategic objectives of the Group and

individual Group companies.

Corporate governance of the Triglav Group’s subsidiaries

Subsidiaries

Transfer of

the governance system

and active management of

direct subsidiaries

Governance policy of the

Triglav Group’s subsidiaries

Standardisation and uniform

rules and procedures in

business segments

Minimum standards for

core activities, reporting

and supervision

Mechanisms for

coordinating key functions,

transfer of know-how and

corporate culture

Mechanisms for

effective supervision and

cooperation of

business segments

Zavarovalnica Triglav

Corporate governance

of subsidiaries

GRI 2-9

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The composition of governance and management bodies as at 31 December 2022

Subsidiary

Management

Supervisory function

Slovenia

Pozavarovalnica Triglav Re d.d., Ljubljana

Gregor Stražar – President,

Tomaž Rotar – Member,

Stanislav Vrtunski – Member

Supervisory Board:

Tadej Čoroli – Chairman

Nataša Veselinović, Katja Modec, Janko Šemrov

Triglav, Zdravstvena zavarovalnica d.d., Koper

Meta Berk Skok – President,

Simon Vidmar – Member

Supervisory Board:

Uroš Ivanc – Chairman,

Nataša Veselinovič, Tomaž Krevatin

Triglav, pokojninska družba d.d., Ljubljana

Aljoša Uršič – President,

Peter Krassnig – Member,

Vida Šeme Hočevar – Member

Supervisory Board:

Blaž Kmetec – Chairman

Nataša Veselinovič, Miha Grilec, Miran Kalčič, Vesna Vodopivec, Borut Simonič, Tomaž Jontes

Triglav Skladi, družba za upravljanje d.o.o., Ljubljana

Benjamin Jošar – President,

Andrej Petek – Member

Miha Grilec – Member

Supervisory Board:

Marica Makoter – Chairwoman,

Jaka Kirn, Nataša Veselinovič, Barbara Gorjup, Miran Kraševec

Triglav Svetovanje, zavarovalno zastopanje d.o.o., Domžale

Matej Golob Matzele – Director

Supervisory Board:

Jasna Kajtazović – Chairwoman,

Jana Polda, Matjaž Novak, Lidija Breznik

Triglav INT, holdinška družba d.o.o., Ljubljana

Tedo Djekanović – Director

Supervisory Board:

Uroš Ivanc – Chairman,

Nataša Veselinović, Saša Kovačić

Triglav Avtoservis d.o.o., Ljubljana

Edvard Zabukovnik – Director,

Boris Kuhelj – Director

Supervisory Board:

Janez Obaha – Chairman,

Nataša Novak Priveršek, Aleš Klement, Boštjan Molan

Triglav, Upravljanje nepremičnin d.o.o., Ljubljana

Mitja Selan – Chief Executive Ofﬁcer,

Rok Pivk – Director

Supervisory Board:

Nataša Veselinović – Chairwoman,

Ksenija Zajc, Nataša Novak Priveršek

Croatia

Triglav Osiguranje d.d., Zagreb

Denis Burmaz – President,

Darko Popovski – Member

Supervisory Board:

Uroš Ivanc – Chairman,

Tomaž Žust, Gorazd Jenko, Alenka Vrhovnik Težak, Pave Srezović-Pušić

Serbia

Triglav Osiguranje a.d.o., Belgrade

Dragan Marković – President of the Executive Committee,

Blaž Jakič – Member of the Executive Committee

Supervisory Board:

Tedo Djekanović – Chairman,

Fejsal Hrustanović, Vuk Šušić, Gorazd Jenko, Milan Tomaževič

Montenegro

Lovćen Osiguranje a.d., Podgorica

Matjaž Božič – Executive Director

Board of Directors:

Tedo Djekanović – Chairman,

Tomaž Žust, Alenka Vrhovnik Težak,Marjeta Gorinšek, Mateja Geržina

Lovćen životna osiguranja a.d., Podgorica

Zorka Milić – Executive Director

Board of Directors:

Ljubica Kovačević – Chairwoman,

Slobodanka Vukadinović, Danilo Pavličić

Bosnia and Herzegovina

Triglav Osiguranje d.d., Sarajevo

Edib Galijatović – President,

Edin Muftić – Member

Supervisory Board:

Tedo Djekanović – Chairman,

Janko Šemrov, Ivica Vulić, Aleš Levstek, Gorazd Jamnik

Triglav Osiguranje a.d., Banja Luka

Janez Rožmarin – Director,

Dejan Vujičić – Member of the Executive Committee,

Dragan Berić – Member of the Executive

Committee

Management Board:

Darko Popovski – President,

Iztok Šekoranja, Blaž Jakič

North Macedonia

Triglav Osiguruvanje a.d., Skopje

Gjorgje Vojnović – Chief Executive Ofﬁcer,

Vojdan Jordanov – Executive Director

Board of Directors:

Tedo Djekanović – Chairman,

Darko Popovski, Matej Ferlan, Blaž Kmetec, Gjorgje Vojnović, Vojdan Jordanov,

Gjorgji Jančevski

Triglav Osiguruvanje Život a.d., Skopje

Vilma Učeta Duzlevska – Chief Executive Ofﬁcer

Board of Directors:

Tedo Djekanović – Chairman,

Ivan Sotošek, Vilma Učeta Duzlevska, Gjorgji Jančevski, Vladimir Mišo Čeplak

Triglav penzisko društvo a.d., Skopje

Tihomir Petreski – President,

Marijan Nikolovski – Member

Supervisory Board:

Aljoša Uršič – Chairman,

Rok Pivk, Blaž Kmetec, Miroslav Vujič

Corporate Governance Statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.5 External and internal audit

On 24 May 2022, the General Meeting of Shareholders appointed the audit ﬁrm Deloitte revizija

d.o.o. the auditor of Zavarovalnica Triglav for the 2022, 2023 and 2024 ﬁnancial years, which was thus

appointed for the second time in a row for a three-year period.

The report on the work of the Internal Audit Department is included in Section

1.1 Risk management

5.6 Internal controls and risk management in

relation to ﬁnancial reporting

The Group’s integrated internal control and risk management system is continuously adapted to the

development, organisational changes and good practices, thereby maintaining its effectiveness. The

system exceeds the basic statutory requirements for insurance undertakings set out in the Companies Act

and the Insurance Act, as well as special implementing regulations of the Insurance Supervision Agency on

the establishment and maintenance of a suitable internal control and risk management system.

The characteristics and operation of the risk management system is discussed in detail in the ﬁrst section

Risk management

. The system was set up in all organisational levels, units and processes and includes:



a clear organisational structure with a precisely deﬁned and transparent system of duties and powers;



efﬁcient procedures for an ongoing control, error prevention, and identiﬁcation, assessment,

management and monitoring of risks to which the insurance undertakings are or may be exposed in

the course of their operations;



an adequate internal control system that includes appropriate administrative and accounting

procedures (reporting, working procedures, risk exposure limits and physical controls);



ensuring compliance with the applicable regulatory requirements.

The Internal Audit Department is an independent organisational unit, established in compliance with

the law. It regularly reviews the effectiveness of the internal control and risk management system and

offers upgrade proposals as well as reports to the Management Board, the Audit Committee and the

Supervisory Board.

Internal controls are guidelines and procedures established by the parent company Zavarovalnica Triglav

and implemented within the Group at all levels. Their purpose is not only to manage the risks relating

to ﬁnancial reporting, but also to ensure reliability of ﬁnancial reporting and compliance with the

applicable laws and other external and internal regulations.

Accounting controls are based on the principles of truthfulness and appropriate sharing of

responsibilities. They include checking the performance of transactions, keeping up-to-date records,

ensuring the matching of balance of books of account with the actual balance, separation of the records

from the execution of transactions, professionalism of accountants and their independence. Accounting

controls are closely linked to IT controls, which, inter alia, restrict and control access to the data and

applications and ensure completeness and accuracy of data capturing and processing.

5.7 Notes on the takeover legislation

Zavarovalnica Triglav is subject to the Takeover Act (hereinafter: ZPre-1).

The share capital structure of Zavarovalnica Triglav, the rights and obligations attached to the shares,

the restriction on transfer of shares and the absence of shares that would grant their holders special

control rights are described in detail in Section

6. The share and shareholders of Zavarovalnica Triglav

5.8 Disclosure of existence of any agreements or

authorisations regarding shares or voting rights

Zavarovalnica Triglav is not aware of any shareholder agreements that could cause a restriction on the

transfer of shares or voting rights.

The Company’s Management Board is not authorised by the General Meeting of Shareholders to buy its

own shares. The Management Board’s authorisation to increase the share capital is described in Section

5.3.2.1

. The issue of new shares, the amount of capital increase, the rights attached to new shares and

the conditions for issuing new shares are decided on by the Company’s Management Board with the

consent of the Supervisory Board.

Zavarovalnica Triglav has no employee share scheme.

The Company is not aware of any agreements that would become effective, change or expire on the basis

of a changed control of the Company or as a consequence of a takeover bid as deﬁned by the ZPre-1.

Zavarovalnica Triglav has not entered into any agreements with the members of its management or

supervisory bodies or employees which would provide for remuneration if a takeover bid in line with the

Zpre-1 caused them to resign, be dismissed without justiﬁed grounds, or caused their employment to

be terminated in some other manner.

Andrej Slapar

President of the Management Board

Tadej Čoroli

Member of the Management Board

Blaž Jakič

Member of the Management Board

Uroš Ivanc

Member of the Management Board

Marica Makoter

Member of the Management Board

The share and shareholders of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The share and shareholders of

Zavarovalnica Triglav



The ZVTG share achieved a 4.5% total return and a 10.7% dividend yield at

the 41% annual growth of the trading volume.



The Triglav Group was assigned an “A” credit rating with a stable

medium-term outlook for the seventh time in a row.



There were no signiﬁcant changes in the shareholder structure of

Zavarovalnica Triglav.



In investor relations, increased attention was paid to natural persons,

whose trading in ZVTG shares and stake have strengthened in recent years.

6.1 Share of Zavarovalnica Triglav

Zavarovalnica Triglav’s share (ZVTG) is listed on the Ljubljana Stock Exchange Prime Market. Its

total

annual return

was

4.5%

as at 31 December 2022, of which

the dividend yield

was

10.7%

. The price-to-

book ratio was 1.05.

With the market capitalisation of EUR 784.4 million (index 94), Zavarovalnica Triglav was

the fourth

largest Slovenian listed company

in 2022, and its share was

the fourth most liquid share on the Ljubljana

Stock Exchange

. The ZVTG share generated the annual stock market turnover of EUR 28.3 million, up

by 41% compared to the year before, while the total turnover on the Ljubljana Stock Exchange rose by

13%. Over a quarter of its share turnover was carried out by

the liquidity provider

, which has rendered its

services for the Company since 2019. According to the data available, the ZVTG share is included in indices

of STOXX, S&P, Bloomberg and the Ljubljana, Vienna, Zagreb and Warsaw stock exchanges.

Key ﬁgures relating to the Zavarovalnica Triglav share

Items

31 December 2022

31 December 2021

31 December 2020

Maximum closing price

41.40

37.20

36.00

Minimum closing price

31.40

29.80

23.20

Closing price

34.50

36.80

30.00

Book value per share (parent company)

24.28

29.70

28.33

Book value per share (consolidated data)

32.96

40.93

38.16

Net earnings per share (consolidated data)

4.85

4.97

3.24

Market capitalisation

784,362,606

836,653,446

682,054,440

Average daily trading volume (excluding block trades)

113,291

80,554

131,945

Payed dividend per share

3.70

1.70

0.00

No. of shares

22,735,148

The percentage of ﬂoating stock

30.73 %

30.73%

Traded on

Ljubljana Stock Exchange - LJSE

ISIN code

SI0021111651

Ticker symbol

ZVTG

Bloomberg

ZVTG SV

Reuters

ZVTG.LJ

Credit rating (S&P Global Ratings, AM Best)

»A«, stable medium

term outlook

»A«, stable medium

term outlook

»A«, stable medium

term outlook

The share and shareholders of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The ZVTG share price movement in 2022 was inﬂuenced by several factors; positive factors included

good business results and the forecast high dividend payout of 74% of the Company’s consolidated net

proﬁt for 2021. The dividend payment cut-off date was 7 June 2022 (see Section

5.3.1 General Meeting

of Shareholders

and

6.4 Dividends and the dividend policy

for more information). Apart from that,

the share price was negatively affected by the situation on the stock markets, including the Slovenian

stock market, as a result of the war in Ukraine, the deterioration of the economic environment and an

uncertain macroeconomic outlook. As seen in the ﬁgure, the ZVTG share price in 2022 decreased by

6%, the Ljubljana Stock Exchange SBITOP index, in which the ZVTG share holds an 11.5% share, fell by

17% and the STOXX Europe 600 Insurance sectoral index of 35 shares of European insurance companies

dropped by 1%.

Movement in the ZVTG share price in 2022 compared to the Ljubljana Stock Exchange SBITOP

index and the sectoral index of European insurance companies STOXX Europe 600 Insurance

(the baseline date: 31 December 2021 = 100)

ZVTG

SBITOP index

STOXX Europe 600 Insurance index

12/31/2022

11/30/2022

10/31/2022

09/30/2022

08/31/2022

07/31/2022

06/30/2022

05/31/2022

04/30/2022

03/31/2022

02/28/2022

01/31/2022

12/31/2021

120%

110%

100%

99%

94%

83%

90%

80%

70%

Value in %

Movement in the ZVTG share price in the last five years compared to the Ljubljana Stock Exchange

SBITOP index and the BEINSUR sectoral index (31 December 2017 = 100)

ZVTG

SBITOP index

BEINSUR Insurance index

170%

150%

130%

113%

119%

130%

110%

90%

70%

12/31/2022

12/31/2021

12/31/2020

12/31/2019

12/31/2018

12/31/2017

50 %

Value in %

The share and shareholders of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

6.2 Equity

As at 31 December 2022, Zavarovalnica Triglav’s

share capital

amounted to EUR 73,701,391.79. It is divided

into 22,735,148 ordinary registered no-par value shares constituting one class. The shares are issued in

dematerialised form and are freely transferable. Each share represents the same stake and corresponding

amount in share capital, and all have been fully paid up. Each share gives its holder the right to one vote at

the General Meeting of Shareholders and a proportionate share of proﬁt allocated for dividend payment.

In the event of bankruptcy or liquidation, the shareholders are entitled to a proportionate share of residual

bankruptcy or liquidation estate after the payoff of preference shareholders.

In acquiring shares, the existing and potential shareholders of Zavarovalnica Triglav are required to

comply with the Insurance Act (ZZavar-1). An authorisation of the Slovenian Insurance Supervision

Agency is a prerequisite for:



the acquisition of shares of an insurance undertaking by which a person acquires or exceeds

a qualifying holding (i.e. a direct or indirect holding of shares or other rights that gives the holder

a minimum 10% share of voting rights or capital, or that gives the holder a share of voting rights or

capital lower than 10%, but nevertheless allows the holder to signiﬁcantly inﬂuence the management

of the company). In its decision on issuing an authorisation to acquire a qualifying holding, the

Insurance Supervision Agency determines the level of the share in the voting rights or capital of the

insurance undertaking for which the authorisation is issued as one of the following ranges:



the share of the voting rights or capital of the insurance undertaking that is equal to or greater

than a qualifying holding and less than 20%;



the share of the voting rights or capital of the insurance undertaking that is equal to or greater

than 20% and less than one third;



the share of the voting rights or capital of the insurance undertaking that is equal to or greater

than one third and less than 50%;



the share of the voting rights or capital of the insurance undertaking that is equal to or greater

than 50%;



the share on the basis of which the future qualifying holder becomes the parent company of the

insurance undertaking;



before any subsequent acquisition of shares by the qualifying holder that would result in the

qualifying holding exceeding the range subject to the already issued authorisation for acquisition of

a qualifying holding;



for the entities that agree to a concerted acquisition of the shares of the insurance undertaking

or a concerted exercising of management rights arising from the shares (joint qualifying holders)

and intend to acquire a holding by which they would jointly reach or exceed a qualifying holding

of the undertaking;



before any subsequent acquisition of shares by the joint qualifying holders that would result in their

joint qualifying holding exceeding the range subject to the already issued authorisation for acquisition

of a qualifying holding.

The holder of shares of an insurance undertaking that were acquired or are being held in contravention of

the ZZavar-1 has no voting rights with respect to those shares. See the ZZavar-1 for further information.

6.3 Shareholder structure

There were no signiﬁcant changes in Zavarovalnica Triglav’s shareholder structure

in 2022. The stakes

of the three largest shareholders, two funds owned by the Republic of Slovenia (ZPIZ Slovenije and SDH

d.d.) and the Croatian pension fund, which appears in the Company’s share register on the ﬁduciary

account of its custodian bank, remained unchanged.

Zavarovalnica Triglav had

8,294 shareholders

as at 31 December 2022, among them around

40 international banks with ﬁduciary accounts held by their clients and international institutional

investors. At the beginning of the year, the number of shareholders decreased by a third (primarily

natural persons) as a result of the activities of KDD (Centralna klirinško depotna družba), which were

related to the time of the ownership transformation of Slovenian companies.

The stake of

international institutional shareholders

, who originate mostly from Europe and the USA,

continues to remain stable and reached 16.0% as at 31 December 2022 (0.5 percentage point less than

the previous year). The stake of

Slovenian institutional shareholders

remained unchanged at 8.5%,

while the stake of

natural persons

increased by 0.6 percentage point to 12.9%. In recent years, natural

persons have been actively trading in ZVTG shares, gradually increasing their stake, which the Company

encourages with additional activities as part of its investor relations.

The shareholder structure of Zavarovalnica Triglav as at 31 December 2022

Two funds owned by the Republic of Slovenia: 62.6%

International institutional shareholders: 16.0%

Retail investors: 12.9%

Slovenian institutional shareholders: 8.5%

Source: Centralna klirinško depotna družba

GRI 2-1, 2-6

The share and shareholders of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Zavarovalnica Triglav’s top ten shareholders as at 31 December 2022

Ownership in %

ZPIZ Slovenije, Slovenia

SDH d.d., Slovenia

Erste Group Bank - PBZ Croatia Osiguranje OMF account – fid. account,

Unicredit Bank Austria – fiduciary account, Austria

Citibank – fiduciary account, Great Britain

Hrvatska poštanska banka – fiduciary account, Croatia

Clearstream Banking SA – fiduciary account, Luxemburg

Skandinaviska Enskilda Banken – fiduciary account, Luxemburg

TINFIN d.o.o., Slovenia

State Street Bank and Trust – fiduciary account, USA

34.47%

28.09%

6.71%

2.70%

2.16%

1.02%

0.53%

0.52%

0.38%

Source: Centralna klirinško depotna družba

The Company’s share of

the free ﬂoat

, i.e. the shares held by the shareholders with less than a 5% stake,

stood at 30.7%, remaining stable. The ownership of the free ﬂoat is dispersed among shareholders from

30 countries.

The minority shareholder structure of Zavarovalnica Triglav by the country of origin as at

31 December 2022 (the share of the free ﬂoat in %)

Slovenia: 69.3%

Austria: 9.2%

Great Britain: 7.2%

Croatia: 6.7%

Luxembourg: 3.6%

USA: 2.1%

Czech Republic: 0.6%

Hungary: 0.6%

United Arab Emirates: 0.2%

Other 21 countries:0.6%

The number of shares held by the members of the Management and Supervisory Boards as at

31 December 2022

Name and surname

Post

Number of shares

Equity stake

Management Board

1,675

0.01%

Andrej Slapar

President

900

0.00%

Uroš Ivanc

Member

475

0.00%

Tadej Čoroli

Member

150

0.00%

Marica Makoter

Member

150

0.00%

Supervisory Board

3,104

0.01%

Shareholders representatives

1,500

0.01%

Andrej Andoljšek

President

0.00%

Branko Bračko

Deputy Chairman

0.00%

Tomaž Benčina

Member

0.00%

Peter Kavčič

Member

1,220

0.01%

Igor Stebernak

Member

0.00%

Jure Valjavec

Member

280

0.00%

Employee representatives

1,604

0.01%

Peter Celar

Member

400

0.00%

Branko Gorjan

Member

1,204

0.01%

Igor Zupan

Member

0.00%

Management and Supervisory Board combined

4,779

0.02%

The share and shareholders of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

6.4 Dividends and dividend policy

The Company considers its

dividend policy

to be a ﬁrm commitment to its shareholders and implements

it in accordance with its provisions. In 2020 and 2021, the implementation of the dividend policy was

affected by the COVID-19 pandemic and related positions of the Slovenian insurance sector regulator.

In 2022, based on the Management Board and the Supervisory Board’s proposal, the General Meeting of

Shareholders approved

the resolution to pay the dividend of EUR 3.70 gross or EUR 84.1 million in total

The amount exceeded the initial 50% of the consolidated net proﬁt for the previous year – it was

74%

of the net proﬁt

. A part of the dividend was the additional amount made possible by the level of the

Group’s available capital and stemmed from the uniqueness or exceptionality of some segments of the

Group’s operations in the past two years. See Section

5.3.1 General Meeting of Shareholders

for more

information about the 2022 General Meeting of Shareholders.

The dividend policy of Zavarovalnica Triglav provides as follows:

The Company pursues an attractive

and sustainable dividend policy. The part of consolidated net proﬁt of the preceding year which is to be

allocated to dividend payment accounts for at least 50%. The Company will strive to pay out a dividend

no lower than the dividend paid out in the preceding year. As thus far, the future implementation of the

dividend policy will be subordinated to achieving the medium-term sustainable target capital adequacy

of the Triglav Group. The proposal of the Management Board and the Supervisory Board as regards the

annual distribution of accumulated proﬁt of the Company will therefore take into account the following

three objectives in a balanced manner: to ensure prudent capital management of the Triglav Group and its

ﬁnancial stability, to reinvest net proﬁt in the implementation of the strategy of growth and development

of the Triglav Group and to pay out attractive dividends to its shareholders

.«

The strategic objectives of capital management in conjunction with the dividend policy are described in

Section

2.1 Risk management

6.5 Investor relations management

Through

the active management of relations with investors

, shareholders and analysts, the Company

promotes the attractiveness of its ﬁnancial instruments. In doing so, the Company follows best

international practices and, as one of the largest companies listed on the Ljubljana Stock Exchange (in

December 2022 the Company marked 11 years since its listing on the prime market), strives to co-create

the standards of this market.

The Company strives for transparent information.

All key information about the Company’s operations,

position and outlook is regularly published in Slovenian and English on the SEOnet information system of

the Ljubljana Stock Exchange and on the Company’s website

www.triglav.eu

The Company also keeps the lines of communication with its shareholders, investors and analysts open,

and pays special care to

shareholders – natural persons

by being available to them for any questions on

a daily basis. Last year, the Company presented its ZVTG share at two events held by the Ljubljana Stock

Exchange, targeting shareholders – natural persons, raising ﬁnancial literacy of small investors and jointly

promoting Ljubljana Stock Exchange Prime Market shares.

In the reporting period, the Company mainly communicated with

institutional shareholders

predominantly via videoconferencing meetings, conference calls and by email.

The calendar of the

13 investor events attended by the Company

is available on its website, including the respective

presentations. Among them was a special event organised by the Company, which was aimed at

presenting the Triglav Group’s strategy for 2022–2025, and four meetings held following the publication

of each ﬁnancial report.

For any information for shareholders, investors and analysts, please use the contact information below.

Information for shareholders:

Zavarovalnica Triglav, d.d., Ljubljana

Miklošičeva cesta 19, 1000 Ljubljana

Ms Helena Ulaga Kitek, Head of Investor Relations

Telephone: ++386 (1) 47 47 331

Email:

investor.relations@triglav.si

6.6 Credit rating of the Triglav Group and

Zavarovalnica Triglav

The credit ratings of the Triglav Group – and thus its parent company Zavarovalnica Triglav and its

subsidiary Pozavarovalnica Triglav Re – are assigned by two renowned credit rating agencies: S&P

Global Ratings (hereinafter: S&P) and AM Best. Both agencies assigned an

“A” stand-alone credit rating

with a stable medium-term outlook

to the Triglav Group. In 2022, both credit rating agencies rated all

individual elements of the overall credit rating

as high as the year before

and substantiated them in

a similar way.

Gross dividend per share by year (EUR) and its share of consolidated net profit for

the preceding year for the dividend payment in 2013–2022

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2.0

1.7

2.5

1.7

3.7

63%

56%

67%

64%

69%

82%

70%

53%

74%

Gross dividend per share (in EUR)

% of consolidated net profit for the previous year

GRI 2-29

The share and shareholders of Zavarovalnica Triglav

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Credit ratings of Zavarovalnica Triglav since 2008

Year

Credit rating

Medium-term outlook

Rating agency

2022

Stable

AM Best

S&P Global Ratings

2021

Stable

AM Best

S&P Global Ratings

2020

Stable

AM Best

S&P Global Ratings

2019

Stable

AM Best

S&P Global Ratings

2018

Stable

AM Best

S&P Global Ratings

2017

Stable

AM Best

S&P Global Ratings

2016

Stable

AM Best

S&P Global Ratings

2015

A-

Positive

AM Best

S&P Global Ratings

2014

A-

Positive

AM Best

A-

Stable

S&P Global Ratings

2013

A-

Stable

S&P Global Ratings

A-

Stable

AM Best

BBB+

Positive

S&P Global Ratings

2012

A-

Negative

S&P Global Ratings

2011

Negative

S&P Global Ratings

2010

Stable

S&P Global Ratings

2009

Stable

S&P Global Ratings

2008

Stable

S&P Global Ratings

In 2022, both credit rating agencies rated all individual elements of the overall credit rating

as high as

the year before

and substantiated them in a similar way. The business risk proﬁle of the Triglav Group

was again assessed as strong and its ﬁnancial risk proﬁle as very strong by the S&P credit rating agency.

The AM Best credit rating agency re-afﬁrmed the Financial Strength Rating of “A” (Excellent) and the

Long-Term Issuer Credit Ratings of “a” (Excellent).

The latest credit rating reports, i.e. the announcements of the credit rating agencies from 2022, are

available on the website

www.triglav.eu

under the Investor Relations tab.

6.7 Bonds of Zavarovalnica Triglav

Zavarovalnica Triglav has one issued subordinate bond, which is included in its capital adequacy.

The bond was issued in 2019 as part of the Group’s regular capital management to ensure its optimal

composition and cost efﬁciency. It replaced the bond that matured on 21 March 2020. See the table

below for more information.

Bond of Zavarovalnica Triglav

ISIN

XS1980276858

Type

Subordinated bond (Tier 2) pursuant to the Solvency II regulations

Issue size in EUR

50,000,000

Currency

EUR

Coupon rate and payment

ﬁxed at 4,375% annually until ﬁrst call date, payable annually

thereafter variable at 3-month Euribor plus 4.845% (equal to the original initial credit

spread + 1 percentage point), payable quarterly

First call date

22 October 2029

Maturity date

22 October 2049

Maturity in years

30.5

Regulated market

Luxembourg Stock Exchange

Issue rating

BBB+ (S&P)

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Operations of the

Triglav Group and

Zavarovalnica Triglav



The Triglav Group maintained its leading market position among insurance

groups in Slovenia and Montenegro. Its market shares were either increased or

maintained in most insurance markets.



Premium growth was recorded in all insurance markets and all insurance segments.



Due to higher inﬂation, gross claims paid and operating expenses increased, and

it was necessary to make adjustments to premium rates.



Escalation of the frequency of weather-related loss events additionally affected

gross claims paid.



Rising interest rates in the ﬁnancial markets and falls in values in the stock

markets reduced the value of ﬁnancial investments, assets under asset

management and returns on ﬁnancial investments.

7.1 The general economic environment worldwide

and in Slovenia

The year 2022 was marked by the war in Ukraine, sanctions imposed against Russia and a sharp rise in

general inﬂation. The global economy also started to cool down. A moderate technical recession was

recorded in the USA in the ﬁrst half of the year, while the euro area found itself in a similar situation

upon entering 2023. Economic sentiment indicators fell among businesses in both the manufacturing

and the service sectors, which had begun to recover from the pandemic. At the same time, the looming

threat of an energy crisis, record prices of energy products and ever-increasing general inﬂation

severely eroded conﬁdence among European consumers. Their purchasing power decreased noticeably,

but the situation in the labour market remained favourable. Due to record low unemployment and

a considerable shortage of workers, salary growth started to strengthen. According to Eurostat

data, inﬂation in the euro area reached 10.6% in October, which is the highest since it started being

measured by this institution. Inﬂation like this has not been recorded in developed countries since the

energy crisis in the 1970s.

According to the latest estimates, inﬂation in the euro area in 2022 stood at 8.5% on average. In 2023,

it is forecast to decrease slightly, but will remain at a high level of close to 6%. The economy of the

euro area countries, whose real GDP growth was 3.2% on average, will go into a slight recession next

year. Analysts point to the great uncertainty regarding geopolitical events and the wider consequences

associated with them.

The Slovenian economy recovered above average in 2022, which is the result of the growth effect from

the previous year. The ﬁrst signs of cooling appeared in the ﬁrst half of the year, when the effect of

the post-pandemic opening of the economy gradually wore off, and the sentiment among businesses

and consumers deteriorated due to the energy crisis. The growth of private consumption and gross

investments began to slow down, and the growth of international trade also fell slightly. The labour

market situation remained favourable, with the survey unemployment rate reaching an all-time

low (4.0% in Q3 2022) according to the latest available data. The state of public ﬁnances was also

favourable, as according to the Bank of Slovenia’s December forecast, the general government deﬁcit

was relatively low, standing at 2.9% of GDP, while gross government debt decreased, but remained

above the pre-epidemic level at 71% of GDP.

According to the forecast of the Slovenian central bank, Slovenian GDP growth in 2022 was 5.0%,

and in 2023, the economy will practically stagnate at 0.8% growth. Inﬂation will also be slightly

lower at 6.8%, which reached its peak at 9.3% in 2022. The forecasts are accompanied by numerous

uncertainties due to geopolitical events, which may directly or indirectly affect economic growth and

inﬂation in Slovenia through the international environment.

In 2022, the decisive response of central banks due to the economic situation had a markedly negative

impact on capital markets worldwide. In early 2022, the US Federal Reserve (Fed) and the European

Central Bank (ECB) accelerated the end of their multi-year accommodative monetary policies and

started to raise interest rates. From March to the end of 2022, the Fed raised its key interest rate

range to 4.25–4.50% in seven increments. The ECB ended its net asset purchases in June, and in the

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second half of the year raised its central interest rate to 2.5% in four increments. In December, the ECB

announced that in March, just as the Fed had already done in June 2022, it would start net bond sales.

The representatives of both central banks clearly communicated on multiple occasions that they would

continue to increase interest rates in the ﬁght against inﬂation in 2023.

The required yields on long-term risk-free bonds grew at a historic rate save for a few short-lived

downward spikes. The required yield on the 10-year German government bond rose from a negative value

at the end of 2021 by 2.75 percentage points to 2.57% by the end of 2022, while the yield on the 10-year

Slovenian government bond increased by 3.41 percentage points to 3.82%. Spreads on government bonds,

especially those with a poor credit rating, also gradually rose following the July announcement of the

ECB’s new bond-buying scheme to combat ﬁnancial fragmentation. On average, spreads on investment

grade corporate bonds almost reached their peak at the outbreak of the pandemic in October, but fell

slightly during the rest of the year. Stock indices also recorded one of their worst years. The US S&P index

and the German DAX index fell by 19.4% and 12.3% in a year, respectively. The China’s Hang Seng index fell

by 15.5%. The Slovenian stock exchange index SBITOP ended the year with a 16.9% drop.

7.2 Environmental impact on the Triglav Group’s

operations

Higher inﬂation resulted in higher prices of materials and services, and therefore higher payments

of gross claims paid and gross operating expenses. Due to inﬂationary pressures, sums insured and

premium rates were adjusted in most non-life insurance classes; however, they will have a greater

impact on the growth of premium income in 2023. See Section

3. of Risk management

for more

information about the impact of inﬂation. The increase in the number and volume of claims paid was

also inﬂuenced by the greater mobility of the population and the economy, as well as by the need to

compensate for the healthcare services that were unavailable due to the pandemic last year. Supply

chain disruptions also had an impact on higher gross claims paid.

Due to high inﬂation, the war in Ukraine and the shutdown of the Chinese economy as a result of the

COVID-19 pandemic, the prices of all major asset classes fell in the capital markets. The volume of the

European asset management market decreased, which is primarily due to a fall in the value of the

markets, while inﬂows into the funds were also under pressure. See Section

7.11 Asset management

for

more information. The situation in the ﬁnancial markets resulted in negative returns on investments,

a decline in assets under management and lower values of ﬁnancial investments.

In 2022, the volume of major CAT events and their impact on the Group’s proﬁt was less favourable.

Their impact is estimated at EUR 32.1 million (compared to EUR 23.6 million in the previous year). In

Slovenia, hailstorms in May and June and a storm at the end of August led to EUR 18.9 million in claims,

while in Croatia hailstorms and ﬂoods resulted in EUR 0.7 million in claims. Furthermore, in North

Macedonia hailstorms resulted in EUR 0.5 million in claims and in Montenegro in EUR 0.4 million in

claims. The Group also incurred EUR 11.6 million in reinsurance claims (due to the February storms in

Great Britain, the Benelux countries and Germany, ﬂoods in South Africa and Australia, hailstorms in

France, typhoon Hinnamnor in South Korea and drought that affected crops in Croatia.

7.3 Global insurance market

Total premium volume on

the global insurance market

in 2021 reached USD 6.9 trillion (according to latest

ofﬁcial data from Swiss Re reinsurance company) or

3.4% in real terms

(nominal growth was 9.0%). The

real growth rate for non-life insurance premium was slightly lower and stood at 2.6%, whereas for life

insurance premium it was higher and reached 4.5%. The US, which remained the market leader, reached

3.3% real growth and accounted for 44.2% of total global premium. Among the groups of countries, the

insurance market of advanced EMEA countries strengthened the most, achieving 6.6% growth and 25.8%

of total global premium (vs. 24.6% the year before). The Middle East and Africa countries hold a 2.0%

share of the global insurance market and recorded a 5.0% increase in written premium. The premium of

Emerging Europe and Central Asia countries, which includes Slovenia, was 4.5% higher, with the region

maintaining its 1.2% share of the world market. The countries of Asia (Paciﬁc) recorded a 0.7% growth in

premium volume but decreased their share in the global insurance market by 1.3 percentage points to

26.8%. Advanced markets accounted for 81.1% of the global insurance premium (3.9% premium growth)

and the rest was contributed by emerging markets (1.5% premium growth).

The US continues to have the largest insurance market with a 39.6% of share of the world market,

followed by China (10.1%), Japan (5.9%) and three European insurance markets – United Kingdom

(5.8%), France (4.3%) and Germany (4.0%).

Swiss Re estimates that the slowdown in economic growth and high inﬂation will have a negative

impact on the insurance market in 2022 and 2023. A slowdown in economic growth usually results in

lower demand for insurance, while high inﬂation will primarily result in higher claims payout. According

to Swiss Re, the global premium volume will surpass USD 7.0 trillion for the ﬁrst time in 2022, achieving

6.1% nominal growth and 0.4% real growth. Non-life insurance premium will increase by 0.8% in real

terms, whereas life insurance premium will contract slightly by 0.2%. In 2023, insurance premium

growth will be somewhat higher.

Global insurance premium growth in 2020–2023

2020

2021

-0.2%

2022 estimate

2023 forecast

Non-life insurance

Source: Swiss RE, SIGMA 4/2022

Life insurance

3.1%

2.6%

-4.2%

4.5%

1.9%

0.8%

2.2%

GRI 201-2, SASB: FN-IN-450a.2

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7.4 Operations of the Triglav Group in

the Adria region (South-East Europe)

7.4.1 South-East Europe

The Triglav Group sells insurance in seven insurance markets in six countries: Slovenia, Croatia,

Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia. The Group operates in the

wider international environment through partnerships with foreign insurance brokerage and agency

companies as well as with reinsurers.

The Slovenian insurance market, where Zavarovalnica Triglav and the specialised insurers Triglav,

Zdravstvena zavarovalnica and Triglav, pokojninska družba are active, is well developed. Other insurance

markets in the Adria region remain relatively underdeveloped, maintaining great potential for growth.

They continue to be dominated by motor vehicle insurance. Pozavarovalnica Triglav Re operates

throughout the region and in the wider international environment.

Premium growth was recorded in all insurance markets in the region. The Serbian, North Macedonian

and Montenegrin markets achieved the highest relative growth.

Main macroeconomic indicators for 2022 by Triglav group insurance market and in the EU

Macroeconomic indicators

Slovenia

Croatia

Serbia

Montenegro

Bosnia and

Herzegovina

North

Macedonia

European

Union

Population (in million)

2.1

4.0

6.8

0.6

3.5

2.1

443.6

GDP growth (estimate in %)

5.7

5.9

3.5

7.2

2.5

2.7

3.2

2022 GDP

(estimate in USD million)

62.2

69.4

62.7

6.1

23.7

14.1

16,613.1

2022 GDP per capita

(estimate in USD)

29,469

17,318

9,164

9,850

6,818

6,816

53,960

2022 inﬂation rate

(estimate in %)

8.9

9.8

11.5

12.8

10.5

10.6

9.2

2022 unemployment rate

(estimate in %)

4.3

6.9

9.9

13.0*

17.3

15.2

n/a

Source: International Monetary Fund (IMF), World Economic Outlook, October 2022.

* Agency for Statistics of Montenegro (Q3 2022)

The Triglav Group has a leading position among insurance groups in Slovenia and Montenegro and

ranks third in North Macedonia. The Group increased or maintained its market share in most markets,

while increasing the written premium volume in all markets. More information is provided below and in

Section

7.5 Gross written insurance, coinsurance and reinsurance premiums

Market

Market share

Market share trend

Ranked in 2022

Ranked in 2021

Slovenia

38.9%

↑

+ 0.4 percentage point

Croatia

5.6%

●

0.0 percentage point

Serbia*

7.3%

●

0.0 percentage point

Montenegro

37.8%

↓

– 1.3 percentage point

Bosnia and Herzegovina

9.4%

↑

+ 0.6 percentage point

- Federation of BiH

10.8%

↑

+ 1.0 percentage point

- Republic of Srpska**

6.3%

↓

– 0.3 percentage point

North Macedonia

14.7%

↑

+ 1.6 percentage point

* Data for January–September 2022.

** Including the market shares of Triglav Osiguranje, Banja Luka and the branch of Triglav Osiguranje, Sarajevo in Banja Luka.

Market shares and market position of the Triglav Group in the Adria region in 2022

Presented below are the characteristics of individual markets and the market position of Group members.

GRI 2-6

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7.4.1.1 Slovenian insurance market

Although relatively small, the Slovenian insurance market is well developed. On a global scale, in

2021 Slovenia ranked 32

by premium per capita (27

in the preceding year) and 31

by insurance

penetration (premium as percentage in GDP), which is three ranks lower than the year before. The

Slovenian insurance market ranked 59

by written premium (54

in the preceding year), accounting for

0.03% of the global insurance market and 0.2% of the EU insurance market (Swiss Re data for 2021).

Premium per capita and market penetration for Slovenia and some other European countries in 2021

Premium per capita

Insurance penetration

(in EUR)

World rank

(% of GDP)

World rank

Slovenia*

1,237

5.0%

Croatia

398

2.7%

Serbia

149

1.9%

Switzerland

5,555

7.1%

United Kingdom

4,432

11.1%

Austria

2,084

4.6%

Czech Republic

648

2.9%

Poland

379

2.5%

Turkey

104

1.3%

Central Europe

429

2.7%

Eastern Europe

235

2.1%

European union

2,244

7.0%

Euro area

2,609

7.4%

Source: Swiss RE, SIGMA 4/2022

* Data for Slovenia: Slovenian Insurance Association (SZZ)

In 2021, the average premium per capita (insurance density) in Slovenia increased to EUR 1,237,

reaching its peak value to date. Premium as percentage of GDP dropped to 5.0% (vs. 5.6% in 2020),

reaching its bottom since 2000. The reason is high 8.1% growth of Slovenian GDP in 2021; nevertheless,

the insurance industry remains one of the most important economic sectors.

In 2022, a total of 13 insurance companies, four foreign branches and two reinsurance companies

were active

in the Slovenian insurance market, all members of the Slovenian Insurance Association

(hereinafter: the SZZ).

There were eight composite and nine specialised insurers (life, health and non-life insurance) operating in

Slovenia. These data exclude direct insurance transactions of the insurers from other EU Member States

(FOS), whose share is growing but is still relatively low.

The market shares of insurance companies or insurance groups in Slovenia in 2022

Triglav Group: 38.9%

Sava Insurance Group: 19.7%

Generali: 17.2%

Vzajemna: 11.9%

Modra zavarovalnica: 5.0%

Other insurance companies: 7.3%

Source: Slovenian Insurance Association (SZZ)

In the Slovenian insurance market, insurance companies collected

EUR 2.8 billion

in gross written

insurance, coinsurance and reinsurance premiums (this calculation does not take into account internal

transfers of assets for the payment of pension annuities), up by 6.7% relative to the year before.

Non-life insurance premium

rose by 7.9% and represents a 74.5% share. Motor vehicle insurance

and other damage to property insurance contributed the most to the increase in non-life insurance

premium.

Life insurance premium

grew by 3.1%, with unit-linked life insurance and capital redemption

insurance recording growth.

Health insurance premium

, which is taken into account in non-life

insurance premium, reached 5.0% growth.

The Slovenian insurance market continues to be highly concentrated, with the four largest insurers

holding a 76.0% market share.

Zavarovalnica Triglav

is the market leader with a 30.5% market share

(vs. 29.8% in the previous year), followed by Generali (a 17.2% market share).

The Triglav Group

(the

parent company, Triglav, Zdravstvena zavarovalnica and Triglav, pokojninska družba) is the leading

insurance group, which increased its market share by 0.4 percentage point to 38.9%.

The market shares of

the Triglav Group

by segment:



non-life insurance (excluding health insurance): 46.4% (an increase of 0.5 percentage point);



life insurance: 32.3% (an increase of 0.7 percentage point);



health insurance: 30.3% (a decrease of 0.7 percentage point).

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The market shares of

Zavarovalnica Triglav

by segment:



non-life insurance: 31.6% (an increase of 0.8 percentage point);



life insurance: 27.4% (an increase of 0.6 percentage point).

The market share of

Triglav, Zdravstvena zavarovalnica



health insurance: 30.1% (a decrease of 0.7 percentage point).

The market share of

Triglav, pokojninska družba



supplemental voluntary pension insurance (SVPI): 19.0% (a decrease of

0.3 percentage point).

EUR 1,237

premium per capita*

5.0%

premium

as percentage in GDP*

106.7 insurance market

growth index in 2022

* data for 2021

Source: Slovenian Insurance Association (SZZ)

Slovenia

place

38.9%

market

share of

the Triglav

Group

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7.4.1.2 Croatia

According to the International Monetary Fund (IMF), Croatia achieved 5.9% GDP growth in 2022, one of

the highest in the European Union. The unemployment rate is estimated at 6.9%, and inﬂation rose to

9.8% in line with global trends.

Tourism returned to the pre-pandemic level of successful tourist seasons (reaching 96% of the record

2019 year) and remained Croatia’s main strategic guideline and foundation of its economic success. Key

future challenges for maintaining economic growth will include managing public spending, supporting

investment and fostering the business climate.

On 1 January 2023, Croatia joined the euro area and the Schengen Area, which also improved its credit

ratings in 2022 assigned by all credit rating agencies.

In accordance with global trends, GDP growth is expected to decrease to 3.5% in 2023 and inﬂation will

continue to rise, expecting to reach 5.5%.

Insurance market

A total of 15 insurance companies were active in the Croatian market, of which nine were composite

insurers, four non-life insurers and two life insurers. Total written premium was 8.2% higher than

the previous year, with non-life insurance premium increasing by 11.5% and

life insurance premium dropping by 1.8%. In total written premium, non-life

insurance premium rose to 77.6% (vs. 75.3% in the preceding year), while life

insurance accounted for the rest.

Market concentration continued to be high, with top three insurers controlling

almost 48% of the market. With a 24.1% market share, Croatia osiguranje

maintained its dominant position (0.2 percentage point less than in the preceding

year).

Triglav Osiguranje, Zagreb

maintained its 5.6% market share, ranking

seventh. Its written premium growth was slightly higher than the Croatian

insurance market growth (index 108.9).

5.6%

market

share of

the Triglav

Group

Croatia

place

EUR 398

premium per capita*

2.7%

premium

as percentage in GDP*

108.2 insurance market

growth index in 2022

* data for 2021

Source: Swiss RE, SIGMA 4/2022,

Croatian Insurance Bureau

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7.4.1.3 Serbia

After a quick recovery from the economic consequences of the pandemic, the Serbian economy began

to cool down. The inﬂation rate was estimated at high 11.5%, whereas the unemployment rate fell to

9.9%. It is estimated that Serbia recorded 3.5% GDP growth in 2022. The slowdown in economic trends

resulted from the destabilising global and regional environment due to the war in Ukraine, weaker

demand in the European Union, rising energy prices, supply chain disruptions and the impact

of drought on agriculture. In order to tap into the potential for further growth,

the Serbian government will need to focus on structural reforms, comprehensive

control over government spending and providing assistance to the energy sector.

In December 2022, the European Council conﬁrmed with satisfaction the general

progress of Serbia in the accession negotiations for EU membership. It also

highlighted that Serbia’s progress in the rule of law and the normalisation of

relations with Kosovo will be key in the future. In the context of the Open Balkan

initiative, i.e. the way to establishing a zone of free movement of people, goods

and services, Serbia, together with North Macedonia and Albania, continued with

the activities to realise the set goals.

Insurance market

The Serbian insurance market was characterised by high concentration, where

16 insurance companies were active (six composite insurers, six non-life insurers

and four life insurers). The top three insurers (Dunav, Generali Osiguranje and

Wiener) control 57% of the market. Total written premium increased by 12.2% in the ﬁrst nine months.

Non-life insurance premium recorded 14.3% growth, while life insurance premium grew by 4.6%. In

total written premium, non-life insurance premium climbed to 79.7% (vs. 78.2% in the preceding year).

The Serbian insurer

Triglav Osiguranje, Belgrade

maintained its 7.3% market share, ranking ﬁfth. Its

written premium growth was slightly higher than the Serbian insurance market growth (index 112.9).

7.3%

market

share of

the Triglav

Group

EUR 149

premium per capita*

1.9%

premium

as percentage in GDP*

112.2 insurance market

growth index in Q1–3 2022

* data for 2021

Source: Swiss RE, SIGMA 4/2022,

National Bank of Serbia

Serbia

place

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.4.1.4 Montenegro

According to estimates, Montenegro recorded 7.2% GDP growth in 2022, which is mainly the result of

ﬁscal incentives and the recovery of the tourism sector; progress was also seen in export. The inﬂation

rate rose to high 12.8% due to global economic developments.

Public debt remains relatively high, which requires an agile ﬁscal policy and a prompt response to

changes. While solving never-ending challenges, the economic policy will have to be directed towards

improving legislative frameworks and strengthening competitiveness at the microlevel, especially in

green energy, agriculture, tourism and digital transformation.

In the accession process to the European Union, Montenegro fulﬁlled a great deal of requirements and

opened all negotiating chapters. In the coming period, the implementation of reforms will be crucial to

restore the functioning and credibility of the main judicial bodies.

Insurance market

A total of nine insurance companies are active in the Montenegrin insurance market (ﬁve non-life

insurers and four life insurers).

Their total written premium was 9.6% higher than the year before.

Non-life and life insurance premiums increased by 10.3% and 6.8% respectively. In total written

premium, non-life insurance continued to account for the bulk (80.3%).

The Triglav Group, represented by

Lovćen Osiguranje

and

Lovćen životna osiguranja

, maintained its

ﬁrst place in the market, achieving a 37.8% market share (vs. 39.0% in 2021). The Group is followed by

Sava Osiguranje and Uniqa Group (non-life and life insurance together) with a 16.1% and 14.7% market

share respectively. The Group recorded 6.0% premium growth.

37.8%

market

share of

the Triglav

Group

EUR 160

premium per capita*

2.0%

premium

as percentage in GDP*

109.6 insurance market

growth index in 2022

* data for 2021

Source: Insurance Supervision Agency of Montenegro

Montenegro

place

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7.4.1.5 Bosnia and Herzegovina

It is estimated that the gross domestic product of Bosnia and Herzegovina grew by 2.5%, with domestic

demand being the main growth driver. Inﬂation rose to high 10.5% due to negative economic trends

worldwide, while the unemployment rate remained unchanged at 17.3%.

The priorities of Bosnia and Herzegovina’s economy include strengthening the ﬁscal system, reforming

public administration, and promoting a dynamic and competitive private sector. In the coming period,

the key challenges will be solving the problem of qualiﬁed labour shortage and lowering labour costs,

which should improve the business climate and increase the volume of signiﬁcant foreign investment.

In December 2022, the leaders of the EU Member States granted Bosnia and Herzegovina EU candidate

status. This was an important step on its path to European integration. It was also pointed out that in

the future Bosnia and Herzegovina must take action in the ﬁelds of the rule of law, the ﬁght against

corruption and organised crime, migration management and fundamental human rights.

Insurance market

A total of 25 insurance companies were active on the very small but highly competitive insurance

market of Bosnia and Herzegovina, of which 11 were domiciled in the Federation of BiH and 14 in

Republika Srpska, including branches. Total written premium in Bosnia and Herzegovina rose by 7.7%.

Premium written in the Federation of BiH grew by 7.8% and in Republika Srpska by 7.3%. In total

written premium, non-life insurance premium maintained its 78.7% share.

In the Federation of BiH, the Agram corporate group (Adriatic osiguranje and Euroherc) remained the

market leader with a 22.3% market share. By increasing its share by 1.0 percentage point to 10.8%,

Triglav Osiguranje, Sarajevo

ranked third (vs. ﬁfth in the preceding year).

Holding a 13.0% market share, Grawe osiguranje was the market leader in Republika Srpska.

With a 4.7% market share, which was 0.2 percentage point more than the year before,

Triglav Osiguranje, Banja Luka

maintained its eighth place.

The branch of

Triglav Osiguranje, Sarajevo

, which sells only life insurance, held a 1.6% market

share (vs. 2.1% the year before).

In Bosnia and Herzegovina,

the Triglav Group

increased its market share to

9.4% (vs. 8.8% in the previous year) and maintained its third place among

the insurance groups. It recorded 14.7% premium growth, which was

7.1 percentage points higher than the insurance market growth.

Bosnia and

Herzegovina

place

9.4%

market

share of

the Triglav

Group

EUR 119

premium per capita*

2.2%

premium

as percentage in GDP*

107.7 insurance market

growth index in 2022

* data for 2021

Source: FBIH Insurance Supervision Agency,

RS Insurance Agency

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.4.1.6 North Macedonia

The economic situation in North Macedonia deteriorated. According to estimates by the International

Monetary Fund (IMF), its economic growth was 2.7%. The inﬂation rate rose to 10.6%, whereas the

unemployment rate fell slightly to 15.2%.

In July 2022, the Parliament of North Macedonia adopted the Declaration of Social Consensus on

Economic Reforms, Policies and Measures. The declaration summarises that the biggest obstacle to

future development is the lack of the rule of law, an uncompetitive environment and the excessive

inﬂuence of the political establishment on the economy. Future growth will depend primarily on the

effective implementation of structural reforms to increase productivity and competitiveness, and

investment in the green and digital transformation.

North Macedonia has always strived for regional integration. After 17 years, it was ﬁnally granted EU

candidate status. In 2023, economic growth is expected to reach 3% and the inﬂation rate is expected to

drop signiﬁcantly to 4.5%.

Insurance market

A total of 16 insurance companies were active in the North Macedonian insurance market as at the

2022 year-end (11 non-life insurers and ﬁve life insurers), with Osiguruvanje Makedonija also

holding a licence to conduct reinsurance business. The insurance companies booked

MKD 12.8 billion (EUR 208 million) in written premium, up by 9.9% relative to the

preceding year. Non-life insurance premium, representing 82.2% of total written

premium, grew by 9.2% and life insurance premium by 13.7%. The ﬁve largest

insurers booked nearly 46% of total written premium. The market concentration

was particularly high in the life insurance segment, with Croatia život and

Grawe život controlling 54% of the market.

The Triglav Group operates with two companies on the Macedonian

market. Holding a 11.9% market share (0.4 percentage point more than in

2021),

Triglav Osiguruvanje, Skopje

continues to remain the leader in the

North Macedonian insurance market. The insurer specialises in non-life

insurance, holding a 14.4% market share (vs. 13.8% in the previous year).

Triglav Osiguruvanje Život, Skopje

signiﬁcantly increased its share in the life

insurance market by 6.2 percentage points to 16.1%. The Triglav Group therefore

improved its market share by 1.6 percentage points to 14.7%, maintaining the

third place among the insurance groups.

North

Macedonia

place

14.7%

market

share of

the Triglav

Group

EUR 103

premium per capita*

1.6%

premium

as percentage in GDP*

109.9 insurance market

growth index in 2022

* data for 2021

Source: Insurance Supervision Agency of

North Macedonia

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.5 Gross written insurance, coinsurance and

reinsurance premiums

The Triglav Group collected a total of EUR 1,479.6 million in consolidated gross insurance, coinsurance

and reinsurance premiums, up by 9% relative to the preceding year. Total written premium increased in

all insurance segments:



non-life insurance:

EUR 1,009.2 million (index 112),



life and pension insurance:

EUR 266.2 million (index 106),



health insurance:

EUR 204.2 million (index 103).

The proportion of non-life insurance premium in total consolidated gross written premium increased

by 1.4 percentage points, whereas the proportions of life and pension insurance premium and health

insurance premium decreased by 0.5 percentage point and 0.9 percentage point respectively.

The Group continues to increase

the share of insurance premium written in markets outside Slovenia

which grew by 0.5 percentage point. A total of 65.3% of consolidated gross written premium was

earned in the Slovenian insurance market, while 19.5% of the premium was charged in other markets

of the Adria region. International insurance and reinsurance premium also increased and accounted

for 15.2%

The structure of consolidated insurance, coinsurance and reinsurance premiums of the Triglav Group

by market

Gross written premium

Index

Country

2022

2021

2020

2022/2021

2021/2020

2022

2021

2020

Slovenia

965,457,942

903,397,817

872,396,910

107

104

65.3%

66.8%

70.7%

Croatia

94,408,379

86,805,041

72,871,040

109

119

6.4%

5.9%

Serbia

79,905,307

69,274,521

60,770,184

115

114

5.4%

5.1%

4.9%

Bosnia and

Herzegovina

42,757,734

37,189,884

33,220,348

115

112

2.9%

2.7%

Montenegro

40,890,334

38,578,564

36,249,030

106

2.8%

2.9%

North

Macedonia

30,629,458

24,847,107

20,976,376

123

118

2.1%

1.8%

1.7%

International

insurance and

reinsurance*

225,507,933

192,882,616

137,291,477

117

140

15.2%

14.3%

11.1%

Total

1,479,557,087

1,352,975,550

1,233,775,365

109

110

100.0%

* Premium written outside the Adria region, collected according to the principle of free movement of services (FOS), and inward reinsurance premium.

Total written premium increased in

all insurance markets

. In the Slovenian market, premium grew by

7%, in other markets in the Adria region by 12% and in the international market by 17%.

Non-consolidated gross written premium of

retail clients

amounted to EUR 879.7 million, up by 13%

relative to the year before. Its share in total written premium increased by 2.1 percentage points to

62.9%. The rest, 37.1%, was accounted for by

corporate clients

’ written premium, which reached EUR

517.8 million, up by 3% relative to the preceding year.

The largest share, 64.0% (0.3 percentage points more than in the previous year), of the Group’s

non-consolidated gross written premium was collected via

own sales channels

(agents, sales clerks

and brokers, own points of sale, online and other own sales channels). Its volume rose by 9%. The rest

(36.0%) was collected via

external sales channels

(insurance agency and brokerage companies, banks,

post ofﬁces and roadworthiness test providers), recording an 8% growth.

The structure of consolidated insurance, coinsurance and reinsurance premiums of

the Triglav Group by segment

2022

2021

Health

14.7%

13.8%

Life and pension

18.5%

18.0%

Non-life

68.2%

66.9%

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Gross written insurance, coinsurance and reinsurance premiums in 2022 by Triglav Group insurance company

Gross written premium

Index 2022/2021

Insurance company

Non-life

Life and pensions

Total

Non-life

Life and pensions

Total

2022

Zavarovalnica Triglav*

670,083,437

198,944,654

869,028,091

111

105

109

62.2%

Triglav, Zdravstvena zavarovalnica

204,622,959

1,425

204,624,384

103

14.6%

Triglav, pokojninska družba

35,401,117

104

2.5%

Triglav Osiguranje, Zagreb

86,395,961

8,012,418

94,408,379

110

109

6.8%

Triglav Osiguranje, Belgrade

73,711,208

6,194,099

79,905,307

118

115

5.7%

Triglav Osiguranje, Sarajevo

20,530,358

15,614,374

36,144,732

119

110

115

2.6%

Lovćen Osiguranje, Podgorica

36,008,211

106

2.6%

Triglav Osiguruvanje, Skopje

24,659,871

114

1.8%

Triglav Osiguranje, Banja Luka

6,647,064

113

0.5%

Lovćen životna osiguranja, Podgorica

4,882,123

105

0.3%

Triglav Osiguruvanje Život, Skopje

5,969,587

184

0.4%

Total

1,122,659,069

275,019,797

1,397,678,866

109

106

109

100.0%

Pozavarovalnica Triglav Re

250,292,376

124

Consolidation eliminations

-159,555,333

-8,858,822

-168,414,155

128

125

Total consolidated

1,213,396,112

266,160,975

1,479,557,087

110

106

109

* The data already include pre-consolidation adjustments.

Non-consolidated gross written insurance, coinsurance and reinsurance premiums in 2022 and 2021

by sales channel of the Triglav Group (excluding Pozavarovalnica Triglav Re)

2022

2021

3.0%

3.2%

2.5%

2.4%

1.1%

3.2%

3.4%

2.5%

2.7%

27.8%

29.1%

29.3%

29.0%

Insurance agents

Sales clerks and

insurance intermediaries

Insurance agency

companies

Own points of sale

Insurance brokerage

companies

Other sales channels

Banks and post offices

Roadworthiness

test providers

30.1%

29.5%

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7.5.1 Non-life insurance

In the

non-life insurance segment

, the Group’s insurance companies charged EUR 1,122.7 million

in non-consolidated written premium, a 9% increase compared to the preceding year. Growth was

achieved in all non-life insurance groups.

In total written premium,

motor vehicle insurance

(comprehensive car insurance, motor vehicle liability

insurance) remained the largest insurance class with a 26.1% share. Motor vehicle insurance premium

increased by 10% to EUR 365.4 million, and its share by 0.3 percentage point. The Group collected EUR

195.2 million in motor liability insurance premium, up by 10% compared to the preceding year. The

volume of

motor liability insurance

premium grew in all insurance companies. The largest growth of 20%

was achieved by the Serbian insurer, as it increased the number of points of sale and achieved a higher

number of concluded insurance policies. The 11% premium growth recorded by the parent company

(a 62% share in total written premium) was primarily a result of effective sales according to the principle

of free movement of services (FOS transactions) and adjustments to premium rates due to inﬂation.

The Group collected EUR 170.2 million in

comprehensive car insurance

premium or 10% more than

in the preceding year. The volume of comprehensive car insurance premium grew in all insurance

companies. The highest growth of 15% was achieved by both insurers in Bosnia and Herzegovina

as a result of effective sales through brokers and agencies, an increase in the number of concluded

insurance policies and a higher average premium. The Serbian insurer recorded 13% growth resulting

from a higher number of insurance policies and an increase in premium rates. The premium written

by the parent company increased by 9% and represented 83% of the Group’s total written premium due

to a larger range of insurance covers and adjustments to premium rates due to higher inﬂation.

The

real property insurance

premium (ﬁre and natural disaster insurance and other damage to

property insurance) rose by 6% to EUR 309.9 million. It accounts for 22.2% of total written premium

(0.6 percentage point less than last year). Premium growth of 8% was recorded in other damage to

property insurance, whereas a 2% premium drop was seen in ﬁre and natural disaster insurance.

Premium growth was recorded in most markets by attracting new policyholders and increasing the

scope of insurance coverage. The Serbian and Sarajevo insurers achieved the highest growth. With

a share of more than 77% in total written premium, the parent company recorded 6% growth and

achieved solid sales results were mainly in property and interest in property insurance for natural

persons (effective sales of redesigned insurance), earthquake insurance (acquisition of new business)

and computer and mobile phone insurance (effective sales of extended warranty at electronics stores).

health insurance

, EUR 216.2 million was collected in written premium, up by 4% relative to

the preceding year. The bulk (EUR 204.6 million) of premium was written by Triglav, Zdravstvena

zavarovalnica, which recorded a 3% increase. The majority of its premium was accounted for by

supplemental health insurance, in addition to being successful mainly in the sale of complementary

health insurance products. High premium growth was achieved by the majority of other insurance

subsidiaries selling these insurance products by acquiring new policyholders.

general liability insurance

, the Group booked EUR 62.4 million in written premium, up by 15%

relative to the year before. Zavarovalnica Triglav, accounting for 78% of total written premium, saw

a 14% growth in written premium compared to the preceding year, predominantly as a result of high

premium growth in product liability insurance, directors and ofﬁcers liability insurance and general

liability insurance. A high premium growth was also seen in other insurance companies by attracting

new policyholders or increasing the scope of insurance coverage with existing policyholders, the highest

premium growth being recorded by the Sarajevo insurer.

Accident insurance

premium amounted to EUR 38.3 million, up by 1%. Strong premium growth was

recorded by the North Macedonian insurer (index 132), predominantly by attracting new policyholders.

At the parent company (a 66% share in total written premium), written premium remained at

approximately the same level as the previous year (index 100).

credit insurance

, the Group saw 25% premium growth, collecting EUR 37.6 million in written

premium. At the parent company, written premium, which accounted for 72% of total written premium,

grew by 23%. The main reasons for such favourable trend are mainly the increase in consumer credit

insurance premium (higher demand for new housing loans and the repayment of existing loans at

the reference interest rate mostly until September, the greater scope of cooperation with one of the

leasing companies) and the high growth of the commodity credit insurance premium (export credits

and domestic trade credits) due to the acquisition of new policyholders and higher bases for premium

calculation resulting from rising prices of raw materials, energy products and inﬂation. With the

exception of Croatia, insurance companies experienced strong growth in all other markets, the highest

in Montenegro (effective sales of consumer credit insurance) and North Macedonia (acquisition of some

new major policyholders).

High 34% growth was recorded in the

other non-life insurance

premium, which amounted to

EUR 93.0 million. In all insurance markets, the written premium volume was higher, with the highest

growth recorded in Croatia, Serbia, and Bosnia and Herzegovina. At the Croatian insurer, high premium

growth resulted from premium growth in aircraft insurance (acquisition of new major policyholders)

and marine insurance (higher sales via an agency) At the Serbian insurer, growth resulted from

a premium increase in railway insurance (a new insurance product), assistance insurance (normalisation

of the situation related to the COVID-19 epidemic and effective online sale) and miscellaneous ﬁnancial

loss insurance (fronting insurance), while at the Sarajevo insurer growth was a result of a premium

increase in assistance insurance and goods in transit insurance (acquisition of new policyholders).

The parent company (a 71% share in total written premium) achieved high 30% premium growth.

Good results were recorded mainly in marine insurance (high growth of international comprehensive

marine insurance) and assistance insurance (premium growth in roadside assistance insurance due to

the higher number of concluded insurance policies and a premium increase).

7.5.2 Life and pension insurance

Premium growth was also recorded by the Group’s

life and pension insurance

, where non-consolidated

gross written premium amounted to EUR 275.0 million, a 6% increase compared to the preceding year.

Its share in total gross written premium dropped by 0.5 percentage point to 19.7%.

Life insurance

premium (traditional life, annuity, pension annuity and voluntary pension insurance) fell

by 1% to EUR 110.9 million. The parent company’s written premium was 6% lower than the preceding

year mainly due to lower premium payments. Serbian and Croatian insurers also recorded a decline in

written premium. Strong premium growth was seen in the Sarajevo insurer (effective sales via bank

sales channels) and the North Macedonian life insurer (effective sales via banks and direct sale).

Operations of the Triglav Group and Zavarovalnica Triglav

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Non-consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group insurance companies

(excluding Pozavarovalnica Triglav Re) by insurance class

Gross written insurance, coinsurance and reinsurance premiums of Zavarovalnica Triglav by insurance class

Gross written premium

Index

Insurance class

2022

2021

2020

2022/2021

2021/2020

2022

Accident insurance

38,261,420

37,801,508

38,181,300

101

2.7%

Health insurance

216,165,405

208,329,989

204,060,344

104

102

15.5%

Comprehensive car insurance

170,185,517

155,404,424

153,459,390

110

101

12.2%

Real property insurance

309,865,917

293,121,568

237,408,204

106

123

22.2%

Motor liability insurance

195,188,463

177,177,660

175,732,026

110

101

14.0%

General liability insurance

62,396,965

54,208,387

48,408,488

115

112

4.5%

Credit insurance

37,606,653

30,194,983

25,453,099

125

119

2.7%

Other non-life insurance

92,988,731

69,214,485

52,465,305

134

132

6.7%

Non-life insurance

1,122,659,071

1,025,453,004

935,168,156

109

110

80.3%

Life insurance

110,857,535

112,261,447

106,799,922

105

7.9%

Unit-linked life insurance*

142,641,251

127,167,633

112,206,228

112

113

10.2%

Supplemental pension insurance in line with the Pension

and Disability Insurance Act

21,521,009

20,316,064

18,880,523

106

108

1.5%

Life and pension insurance

275,019,795

259,745,144

237,886,673

106

109

19.7%

Total

1,397,678,866

1,285,198,148

1,173,054,829

109

110

100.0%

Gross written premium

Index

Insurance class

2022

2021

2020

2022/2021

2021/2020

2022

Accident insurance

25,342,439

25,235,448

25,696,568

100

2.9%

Health insurance

933,955

787,154

926,557

119

0.1%

Comprehensive car insurance

141,497,773

129,298,413

127,536,357

109

101

16.3%

Real property insurance

238,834,859

225,822,878

188,545,816

106

120

27.5%

Motor liability insurance

121,932,762

109,621,258

106,754,958

111

103

14.0%

General liability insurance

48,665,425

42,719,369

38,619,888

114

111

5.6%

Credit insurance

26,957,216

21,883,871

19,137,654

123

114

3.1%

Other non-life insurance

65,919,007

50,641,101

37,569,379

130

135

7.6%

Non-life insurance

670,083,436

606,009,492

544,787,177

111

77.1%

Life insurance

74,655,209

79,238,943

79,466,230

100

8.6%

Unit-linked life insurance

102,603,969

88,785,604

76,121,938

116

117

11.8%

Supplemental pension insurance in line with the Pension

and Disability Insurance Act

21,521,009

20,316,064

18,880,523

106

108

2.5%

Life and pension insurance

198,780,187

188,340,611

174,468,691

106

108

22.9%

Total

868,863,623

794,350,103

719,255,868

109

110

100.0%

* According to the deﬁnition of the Insurance Supervision Agency, premium written by Triglav, pokojninska družba is included in the unit-linked life insurance class.

The premium generated by

unit-linked

life insurance

(life insurance linked to the

units of investment funds) amounted to

EUR 142.6 million, a 12% increase relative to

the year before. This insurance class accounted

for 51.9% of total written life and pension

insurance premium. The high 15% growth at the

parent company is the result of higher premium

payments, asset transfers and additional

payments. High increase was also recorded in

the North Macedonian life insurer with effective

sales via the bank sales channel. The volume of

the pension company’s written premium was

also higher (index 104) as a result of the higher

number of concluded insurance policies and the

higher average monthly premium paid.

Premium from

supplemental pension insurance

in line with the Pension and Disability Insurance

Act

increased by 6% relative to the previous year

and amounted to EUR 21.5 million. The growth

stemmed from higher regular premium payments

and transfers of supplemental pension insurance

assets from other insurance companies.

7.5.3 Gross

written reinsurance

premium of Pozavarovalnica

Triglav Re

Pozavarovalnica Triglav Re

booked a total of

EUR 250.3 million in gross written reinsurance

premium, up by 24%. In transactions within the

Group, it collected 30% more written premium

(EUR 137.5 million), increasing its volume the most

in motor vehicle insurance (motor vehicle liability

insurance and comprehensive car insurance).

In transactions outside the Group, premium

growth was 17% (EUR 112.8 million), which is

predominantly a result of organic growth of

renewed transactions from the preceding year and

the increase in shares in some other damage to

property insurance contracts. The highest premium

growth was recorded in the markets of Japan,

Slovenia, China, South Korea and Israel.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.6 Gross claims paid

The Group’s

consolidated gross claims paid

amounted to EUR 832.2 million,

up by 13% over the previous year. The increase was inﬂuenced by the

higher number of reported claims due to the larger portfolio, higher

population mobility (which was lower last year due to the pandemic), the

higher number of major CAT events and the growth of prices of materials

and services. In the largest segment,

non-life insurance

, gross claims paid

amounted to EUR 463.4 million and were higher by 18%. In the

health

insurance

segment, they grew by 16% to EUR 183.4 million.

In the

life and pension insurance

segment, gross claims paid in the amount

of EUR 185.4 million remained at approximately the same level as in the

previous year (index 100). Gross claims paid include claim handling expenses

less income from collected subrogation receivables.

Non-consolidated gross claims paid

of the Group insurance companies

(excluding Pozavarovalnica Triglav Re) were also higher. High growth was

recorded by most insurance companies, the highest among them by the

North Macedonian life insurer.

Gross claims paid in 2022 by Triglav Group insurance company

Gross claims paid

Index 2022/2021

Insurance company

Non-life

Life and pensions

Total

Non-life

Life and pensions

Total

2022

Zavarovalnica Triglav*

298,242,177

154,213,675

452,455,852

118

111

57.0%

Triglav, Zdravstvena zavarovalnica

183,387,565

28,513

183,416,078

116

23.1%

Triglav, pokojninska družba

20,238,242

116

2.6%

Triglav Osiguranje, Zagreb

51,680,209

6,505,720

58,185,929

120

116

7.3%

Triglav Osiguranje, Belgrade

26,099,069

3,513,061

29,612,130

119

110

3.7%

Lovćen Osiguranje, Podgorica

16,479,024

110

2.1%

Triglav Osiguranje, Sarajevo

9,360,511

5,042,422

14,402,933

106

114

109

1.8%

Triglav Osiguruvanje, Skopje

10,874,980

110

1.4%

Lovćen životna osiguranja, Podgorica

3,669,976

0.5%

Triglav Osiguranje, Banja Luka

2,750,893

0.3%

Triglav Osiguruvanje Život, Skopje

1,049,798

277

0.1%

Total

598,874,428

194,261,407

793,135,835

117

100

112

100.0%

Pozavarovalnica Triglav Re

105,532,665

120

Consolidation eliminations

-57,577,591

-8,860,368

-66,437,959

113

103

112

Total - consolidated

646,829,502

185,401,039

832,230,541

118

100

113

* The data already include pre-consolidation adjustments.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.6.1 Non-life insurance

Non-consolidated gross claims paid in

non-life insurance

(excluding Pozavarovalnica Triglav Re) grew by

17% compared to the year before and totalled EUR 598.9 million. The claims ratio was impacted by some

major CAT events, which is described in greater detail in Section

7.2 Environmental impact on the Triglav

Group’s operations

. An increase in claims was characteristic of most non-life insurance classes, with the

exception of accident insurance.

health insurance

, gross claims paid rose by 16% to EUR 189.9 million, representing 23.9% of total gross

claims paid. The majority (EUR 183.4 million) was accounted for by gross claims paid by Triglav, Zdravstvena

zavarovalnica (index 116). Their growth was inﬂuenced by the normalisation of the provision of healthcare

services after the end of the pandemic and the increase in the prices of healthcare services. Most of the

other Group insurance companies selling these insurance products also recorded high growth in gross

claims paid.

Equalisation scheme expenses increased by 3% to EUR 7.4 million.

real property insurance

, gross claims paid amounted to EUR 115.8 million, up by 21% compared to

the preceding year. Most insurance companies saw strong growth in gross claims paid; the highest was

recorded by the Montenegrin insurer (payment of a large claim in construction insurance, an increase in

crop insurance claims due to hail and a higher number of ﬁre and natural disaster insurance claims), the

Sarajevo insurer (payment of three large ﬁre and natural disaster insurance claims) and the Croatian insurer

(payment of claims due to drought that affected crops, growth in animal insurance claims and payment

of several large fronting insurance claims). Gross claims paid by the parent company, representing 69% of

real property insurance claims, grew by 24%, predominantly due to the payment of several large individual

claims from the international insurance programme in construction insurance and combined non-life

insurance, a greater number of reported property and interest in property insurance claims, the rising

prices of materials and services due to inﬂation and supply chain disruption, as well as major CAT events.

In addition to the latter, several local CAT events (hail, ﬂood) occurred, which were not large enough to be

individually deﬁned as major, but their total value was equal to the value of a major CAT event.

Gross claims paid in

comprehensive car insurance

totalled EUR 109.5 million, an 18% increase relative to the

year before. The majority of insurance companies recorded high growth that resulted from a higher number

of reported claims due to the larger portfolio, higher population mobility, major CAT events (hailstorms) and

the rising prices of materials and services.

Gross claims paid in

comprehensive car insurance

grew by 12% and reached EUR 107.8 million. With

the exception of the Serbian and the North Macedonian insurer, growth was seen in all other insurance

companies. The reasons are mainly the increasing number of settled claims due to both the larger portfolio

and greater population mobility compared to last year as well as the rising prices of materials and services.

At the parent company, growth in gross claims paid was also inﬂuenced by the higher number of claims

from insurance contracts underwritten under the principle of free movement of services (FOS transactions).

The Banja Luka insurer recorded high growth due to the payment of a large individual claim from 2013.

Gross claims paid in

other non-life insurance

grew by 33% and totalled EUR 33.7 million. High growth

was recorded by all insurance companies with the exception of the North Macedonian insurer. The largest

increase was seen at the Croatian insurer (a higher number of reported marine insurance claims due to the

larger portfolio) and the Serbian insurer (large payment of a claim due to insolvency in suretyship insurance,

a higher number of assistance insurance claims due to the lifting of epidemic-related restrictions and an

increased number of goods in transit insurance claims). Gross claims paid of the parent company, which

accounted for 77% of other non-life insurance claims, were 30% higher mainly due to the larger volume

of roadside assistance claims (a higher number of claims, rising prices of petroleum products and services,

due to delays in the delivery of spare parts and longer coverage of replacement vehicle rental) and higher

payment of international comprehensive marine insurance claims.

Gross claims paid in

accident insurance

decreased by 5% to EUR 21.5 million. A strong decline was

recorded by the Montenegrin insurer (lower payouts in accident insurance for pensioners) and the Sarajevo

insurer (lower payouts in group accident insurance). At the parent company, gross claims were down by

2% resulting from some large payouts due to disability in the previous year after the interruption caused by

the pandemic. Lower payouts were mainly recorded in individual accident insurance.

Gross claims paid in

general liability insurance

amounted to EUR 15.0 million, up by 13% over the preceding

year. High growth was experienced by Serbian, Croatian and Montenegrin insurers due to some larger

claims paid out. Gross claims paid by the parent company, accounting for 78% of total gross claims paid

by the Group in this insurance class, increased by 8% primarily due to higher payouts in architects and

engineers liability insurance and general liability insurance (a higher number of settled claims and payouts

of some large claims).

Gross claims paid in

credit insurance

amounted to EUR 5.6 million, up by 16%. Strong growth was recorded

by the Croatian (large increase in the number of claims) and the Serbian insurer (payment of two large

claims). Gross claims paid of the parent company, which account for the bulk (64%) of claims in this

insurance class, recorded an 11% decline due to lower payouts in overdraft insurance (fewer reported

claims) and export credit insurance.

Operations of the Triglav Group and Zavarovalnica Triglav

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.6.2 Life and pension insurance

Non-consolidated gross claims paid in the

life and pension insurance group

totalled

EUR 194.3 million, remaining at approximately

the same level as the year before (index 100).

Their share in total non-consolidated claims paid

fell by 3.0 percentage points to 24.5%.

The bulk of total claims paid was accounted for by

life insurance

(traditional life, annuity, pension

annuity and voluntary pension insurance), totalling

EUR 117.8 million, down by 1% relative to the

previous year. Gross claims paid by the parent

company were 1% lower as a result of lower payouts

due to maturity, illness and accident. Moreover,

a large decline in gross claims paid was recorded by

the Serbian insurer (which in 2021, as a result of the

COVID-19 pandemic, recorded higher payouts due

to death) and the Croatian insurer (which in 2021

carried out a campaign related to capitalised policies,

resulting in payouts of mathematical provisions),

while the Montenegrin life insurer recorded slightly

lower payouts. Other insurance companies selling

these insurance products recorded higher gross

claims paid.

Gross claims paid in

unit-linked life insurance

rose

by 1% to EUR 71.2 million. High 16% growth was

recorded by Triglav, pokojninska družba (the higher

number of withdrawals from insurance contracts and

the higher number of increased ordinary termination

of insurance contracts due to retirement and related

transfer to annuity funds) and 9% growth by the

Croatian insurer (higher payouts due to surrenders).

A 4% decrease in gross claims paid by the parent

company was primarily a result of lower payouts due

to surrenders.

Gross claims paid in

supplemental pension insurance

in line with the Pension and Disability Insurance Act

increased by 20%, predominantly as a result of higher

payouts due to withdrawals from insurance contracts

and transfers of insurance contracts.

Non-consolidated gross claims paid of Triglav Group insurance companies (excluding Pozavarovalnica Triglav Re) by insurance class

Gross claims paid of Zavarovalnica Triglav by insurance class

Gross claims paid

Index

Insurance class

2022

2021

2020

2022/2021

2021/2020

2022

Accident insurance

21,548,633

22,740,003

20,727,007

110

2.7%

Health insurance

189,929,677

163,043,285

147,911,003

116

110

23.9%

Comprehensive car insurance

109,522,638

92,636,703

92,882,937

118

100

13.8%

Real property insurance

115,792,051

95,514,391

89,057,583

121

107

14.6%

Motor liability insurance

107,830,744

96,226,864

94,229,264

112

102

13.6%

General liability insurance

14,974,192

13,276,964

18,212,366

113

1.9%

Credit insurance

5,599,782

4,832,669

6,079,260

116

0.7%

Other non-life insurance

33,676,712

25,253,513

20,706,410

133

122

4.2%

Non-life insurance

598,874,429

513,524,392

489,805,830

117

105

75.5%

Life insurance

117,769,441

119,439,876

111,595,230

107

14.8%

Unit-linked life insurance*

71,162,436

70,447,230

62,944,570

101

112

9.0%

Supplemental pension insurance in line with the

Pension and Disability Insurance Act

5,329,529

4,425,926

4,656,031

120

0.7%

Life and pension insurance

194,261,406

194,313,032

179,195,831

100

108

24.5%

Total

793,135,835

707,837,424

669,001,661

112

106

100.0%

Gross claims paid

Index

Insurance class

2022

2021

2020

2022/2021

2021/2020

2022

Accident insurance

12,481,300

12,755,919

11,259,216

113

2.8%

Health insurance

308,704

232,436

425,255

133

0.1%

Comprehensive car insurance

90,795,098

76,216,318

77,548,159

119

20.1%

Real property insurance

80,445,892

64,751,034

67,698,027

124

17.8%

Motor liability insurance

72,987,859

64,001,235

64,244,617

114

100

16.1%

General liability insurance

11,662,782

10,761,352

16,143,731

108

2.6%

Credit insurance

3,609,094

4,045,904

4,709,310

0.8%

Other non-life insurance

25,951,450

19,961,633

16,009,493

130

125

5.7%

Non-life insurance

298,242,179

252,725,831

258,037,808

118

65.9%

Life insurance

100,112,760

100,677,756

96,431,879

104

22.1%

Unit-linked life insurance

48,771,384

51,038,868

49,152,423

104

10.8%

Supplemental pension insurance in line with the

Pension and Disability Insurance Act

5,329,529

4,425,926

4,656,031

120

1.2%

Life and pension insurance

154,213,673

156,142,550

150,240,333

104

34.1%

Total

452,455,852

408,868,381

408,278,141

111

100

100.0%

* According to the deﬁnition of the Insurance Supervision Agency, gross claims paid by Triglav, pokojninska družba are included in unit-linked life insurance.

Operations of the Triglav Group and Zavarovalnica Triglav

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.6.3 Gross claims paid of Pozavarovalnica Triglav Re

Gross claims paid by

Pozavarovalnica Triglav Re

totalled EUR 105.5 million, a 20% increase over

the previous year. A 42% growth in gross claims paid was seen in transactions outside the Group

(EUR 59.0 million), whereas gross claims paid in transactions within the Group remained at

approximately the same level as last year (EUR 46.5 million). In transactions outside the Group,

the increase was mainly a result of the payment of other damage to property insurance claims

(a large claim under the facultative contract, which was fully ceded to one of the world’s leading

reinsurers) and ﬁre and natural disaster insurance claims. In transactions within the Group, strong

growth in gross claims paid was recorded in motor vehicle liability insurance claims due to the change

in accounting for quota contracts, while settled ﬁre and natural disaster insurance claims experienced

a signiﬁcant decline compared to the previous year.

7.7 Gross operating expenses

Total consolidated gross operating expenses of the Triglav Group rose by 12% to EUR 374.8 million.

Expenses from insurance operations

amounted to EUR 338.2 million, up by 13%. The highest increase

was recorded by acquisition costs (fees and commissions), costs of materials and energy, and

reimbursement of work-related costs. The share of operating expenses of insurance operations in gross

written premium grew by 0.7 percentage point to 22.9%. Operating expenses increased in all insurance

segments; by 16% in the

health insurance

segment (EUR 18.4 million), by 13% in the

non-life insurance

segment (EUR 269.2 million) and by 12% in the

life and pension insurance

segment (EUR 50.6 million).

Expenses from non-insurance operations

increased by 9% and totalled EUR 36.7 million, primarily as

a result of higher costs of materials and energy, higher labour costs and the inclusion of Triglav Fondovi,

Sarajevo under the full consolidation method.

Acquisition costs (fees and commissions)

rose by 24% to EUR 82.6 million. High growth in acquisition

costs was recorded by most insurance companies mainly as a result of the higher number of

underwritten insurance policies and the increased volume of written premium from insurance policies

taken out via external sales channels (contracted points of sale, brokers, agencies and banks). In

addition, their increase was inﬂuenced by the higher volume of transactions concluded under the

principle of free movement of services (FOS) in the EU.

The 14% increase in

depreciation costs

in the amount of EUR 25.8 million was predominantly the

consequence of higher depreciation costs of intangible ﬁxed assets at the parent company (high

investments in software last year), higher lease costs at the Serbian insurer and higher costs of

depreciation of right-of-use assets at Triglav Skladi.

At 45.0%,

labour costs

accounted for the largest portion of total expenses. They amounted to EUR 177.3

million, up by 7% relative to the preceding year. The increase in labour costs resulted from the higher

number of employees in some companies, adjustments to basic salaries due to inﬂationary pressures

and higher other labour costs (higher meal and travel allowances, higher payments by the employer for

voluntary pension insurance, etc.). At the parent company, labour costs rose by 6% mainly due to higher

payments to insurance agents resulting from higher sale, an increase in basic salaries for employees in

September and higher other labour costs.

Costs of services provided by natural persons other than sole proprietors

(contract work and services of

the student work service) dropped by 6%. They amounted to EUR 1.4 million and represented only

0.4% of total expenses.

Other operating expenses

increased by 12% compared to the year before, reaching EUR 106.5 million.

Among them, the bulk is represented by costs of representation, advertising and trade shows

(EUR 22.7 million), followed by maintenance costs (EUR 14.7 million). Reimbursements of work-related

costs increased the most compared to last year as a result of the smaller scope of agents’ work, as well

as lower reimbursement of business travel costs and training costs due to the pandemic in 2021. Their

increase was inﬂuenced by the rise in the prices of fuel and hotel services; however, despite the high

growth, they are still lower than they were before the pandemic. High growth was also recorded by

costs of materials and energy due to high growth of energy prices, non-income related costs excluding

insurance, and costs of intellectual and personal services (higher costs of advisory services at the

parent company).

Acquisition costs represented the largest share (62.5%) of total gross operating expenses from insurance

operations broken down by functional group. Other operating expenses represented 26.8%, claim

handling expenses 9.3% and asset management costs 1.4%.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Gross operating expenses of the Triglav Group by nature

Gross operating expenses

Index

Operating expenses by nature

2022

2021

2020

2022/2021

2021/2020

2022

Acquisition costs (fees and charges)

82,580,992

66,422,411

54,124,019

124

123

21.0%

Costs of goods sold

7,722

130,008

11,179

1,163

0.0%

Depreciation of operating assets

25,825,206

22,591,303

22,001,097

114

103

6.6%

Labour costs

177,294,305

166,208,923

157,524,456

107

106

45.0%

wages and salaries

123,057,863

115,443,711

110,229,227

107

105

31.3%

social security and pension insurance costs

26,839,326

26,163,907

24,559,378

103

107

6.8%

other labour costs

27,397,116

24,601,305

22,735,851

111

108

7.0%

Costs of services provided by natural persons other than SPs, including related taxes

1,444,698

1,535,695

1,208,769

127

0.4%

Other operating expenses

106,549,332

95,345,836

87,942,602

112

108

27.1%

costs of entertainment, advertising, trade shows

22,687,179

20,704,813

17,181,444

110

121

5.8%

costs of material and energy

10,761,123

7,916,541

8,426,457

136

2.7%

maintenance costs

14,690,745

15,368,460

15,181,848

101

3.7%

reimbursement of labour-related costs

4,741,674

3,456,616

3,202,363

137

108

1.2%

costs of intellectual and personal services

8,512,551

6,724,017

5,560,110

127

121

2.2%

non-income related costs, excluding insurance

4,556,697

3,490,300

3,241,068

131

108

1.2%

costs of transport and communication services

5,692,554

5,510,075

5,360,314

103

1.4%

costs for insurance premiums

1,353,304

1,132,762

1,159,846

119

0.3%

payment transaction costs and banking services

12,096,235

11,921,424

9,495,754

101

126

3.1%

rents

6,498,713

5,683,599

4,847,443

114

117

1.7%

costs of professional training services

1,547,135

1,303,829

1,099,790

119

0.4%

other costs of services

13,404,742

12,124,181

13,183,530

111

3.4%

long-term employee beneﬁts

6,680

9,219

2,635

350

0.0%

Total

393,702,255

352,234,176

322,812,122

112

109

100.0%

Consolidation eliminations

-18,818,724

-18,842,729

-16,065,703

100

117

Total consolidated

374,883,531

333,391,447

306,746,419

112

109

Operations of the Triglav Group and Zavarovalnica Triglav

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Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Gross operating expenses of Zavarovalnica Triglav by nature

Gross operating expenses

Index

Operating expenses by nature

2022

2021

2020

2022/2021

2021/2020

2022

Acquisition costs (fees and charges)

45,294,710

34,375,142

28,550,727

132

120

20.5%

Depreciation of operating assets

15,950,731

13,173,274

12,145,270

121

108

7.2%

Labour costs

112,948,624

106,607,468

101,313,635

106

105

51.0%

wages and salaries

79,079,757

75,208,360

72,334,018

105

104

35.7%

social security and pension insurance costs

13,398,355

12,778,998

12,000,752

105

106

6.1%

other labour costs

20,470,512

18,620,110

16,978,865

110

9.2%

Costs of services provided by natural persons other than SPs, including related taxes

513,798

309,753

289,970

166

107

0.2%

Other operating expenses

46,667,116

40,582,438

37,651,247

115

108

21.1%

costs of entertainment, advertising, trade shows

9,688,703

8,647,852

7,607,576

112

114

4.4%

costs of material and energy

5,223,028

3,443,255

3,782,544

152

2.4%

maintenance costs

7,171,955

8,699,049

8,823,036

3.2%

reimbursement of labour-related costs

3,060,471

2,426,737

2,175,475

126

112

1.4%

costs of intellectual and personal services

4,442,670

2,754,338

2,072,025

161

133

2.0%

non-income related costs, excluding insurance

2,353,146

1,457,614

1,380,668

161

106

1.1%

costs of transport and communication services

2,783,075

2,929,987

2,978,697

1.3%

costs for insurance premiums

452,582

305,143

379,318

148

0.2%

payment transaction costs and banking services

1,330,980

1,135,155

1,218,983

117

0.6%

rents

4,320,030

3,688,633

3,024,699

117

122

2.0%

costs of professional training services

1,066,332

895,727

764,945

119

117

0.5%

other costs of services

4,774,144

4,198,948

3,443,281

114

122

2.2%

Total

221,374,979

195,048,075

179,950,849

113

108

100.0%

Operations of the Triglav Group and Zavarovalnica Triglav

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Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.8 Risk equalisation

7.8.1 Insurance technical provisions

The Triglav Group equalised 83% of the risks within its own equalisation capacities. Claims were covered

with the current annual inﬂow of technical premium by insurance class and the insurance technical

provisions formed. The Group was able to equalise risks that exceeded its own equalisation capacities

by reinsurance and, to a lesser extent, by coinsurance arrangements.

Gross insurance technical provisions of

the Triglav Group

, which are the basis for balanced operations

and ensuring the long-term safety of insured persons, amounted to EUR 3,100.1 million as at

31 December 2022 (index 97). The amount of gross insurance technical provisions increased in

non-life insurance

(index 103), while decreasing in both

health insurance

(index 78) and

life and

pension insurance

(index 94).

Zavarovalnica Triglav

allocated EUR 2,173.4 million to gross insurance

technical provisions, down by 5% relative to the preceding year.

Provisions by type as at 31 December 2022 relative to 31 December 2021:



Gross unearned premium

amounted to EUR 414.3 million, a 12% increase over the previous year.

Unearned premium for non-life insurance also increased by 12% to EUR 410.3 million, while

unearned premium for health insurance grew by 1% to EUR 3.5 million. In contrast, unearned

premium for life and pension insurance dropped by 1% to EUR 452 thousand. The movement of

gross unearned premium corresponds to the movement and duration of gross written premium and

the nature of underwritten risks.



Gross claims provisions

declined by 1% to EUR 688.8 million over 2021. Gross claims provisions

are created for covering claims incurred but not settled by the end of the accounting period.

Claims provisions for non-life insurance amounted to EUR 647.9 million, a 1% drop compared to

the previous year. In calculating non-life insurance claims provisions, the inﬂation forecast by the

International Monetary Fund (IMF) and local institutions in each country was taken into account.

In addition, in making provisions, the higher frequency of claims was taken into account, which

decreased during the COVID-19 pandemic, but is now returning to the pre-pandemic level. A partial

release of claims provisions created in previous years largely compensated for higher gross claims

paid; in doing so, in estimating claims provisions, the trends of the best estimate introduced by IFRS

17 were followed, bringing their amount closer to the estimated value according to IFRS 17. Claims

provisions for life and pension insurance amounted to EUR 21.8 million (index 95) and those for

health insurance equalled EUR 19.1 million (index 119). See Section

2.7.2 The impact of geopolitical

risks and the changed economic situation on individual items in the ﬁnancial statements

in the

Accounting Report for more information.



Mathematical provisions

declined by 6% to EUR 1,937.8 million. Mathematical provisions for the

guarantee fund backing life insurance totalled EUR 1,356.9 million (index 95), while insurance

technical provisions for unit-linked life insurance contracts amounted to EUR 580.9 million

(index 93). They fell due to the drop in the price of fund units. Zavarovalnica Triglav’s mathematical

provisions of EUR 1,440.2 million accounted for the bulk (index 93), of which mathematical

provisions for the guarantee fund backing life insurance amounted to EUR 944.5 million (index 94)

and insurance technical provisions for unit-linked life insurance contracts equalled EUR 495.7 million

(index 92).



Provisions for bonuses and discounts

declined by 20% to EUR 22.0 million predominantly as a result

of their decrease at the parent company and the health insurer.



Other insurance technical provisions

reached EUR 37.1 million, having decreased by 28%.

At Zavarovalnica Triglav, they were lower due to a decrease in provisions as a result of the LAT for life

insurance, and at Triglav, Zdravstvena zavarovalnica provisions were formed last year for unexpired

risks due to the pandemic. In addition, the parent company and Triglav, pokojninska družba created

additional provisions due to failing to achieve the guaranteed return on supplemental voluntary

pension insurance.

Gross insurance technical provisions of the Triglav Group

Gross insurance technical provisions of Zavarovalnica Triglav

Gross insurance technical provisions

Index

31 Dec. 2022

31 Dec. 2021

31 Dec. 2020

2022/2021

2021/2020

Unearned premium

414,289,158

370,043,725

344,760,927

112

107

Mathematical provisions

1,937,835,355

2,054,917,059

1,967,008,673

104

Claims provisions

688,788,186

694,498,311

645,331,168

108

Provisions for bonuses and discounts

21,962,914

27,464,185

28,195,354

Other insurance technical provisions

37,148,522

51,748,503

47,917,732

108

Total

3,100,024,135

3,198,671,783

3,033,213,854

105

Gross insurance technical provisions

Index

31 Dec. 2022

31 Dec. 2021

31 Dec. 2020

2022/2021

2021/2020

Unearned premium

276,301,500

246,017,850

235,190,816

112

105

Mathematical provisions

1,440,231,062

1,548,454,207

1,490,283,181

104

Claims provisions

426,901,198

446,567,255

430,259,621

104

Provisions for bonuses and discounts

21,450,003

23,724,069

23,837,107

100

Other insurance technical provisions

8,547,506

15,744,857

19,470,754

Total

2,173,431,269

2,280,508,238

2,199,041,479

104

Operations of the Triglav Group and Zavarovalnica Triglav

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Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

7.8.2 Reinsurance

The Triglav Group

operates in the global

reinsurance market via Pozavarovalnica Triglav

Re and Zavarovalnica Triglav. It aims for optimum

coverage terms and conditions, which was

achieved in all reinsurance and coinsurance

contracts in 2022.

The Group allocated EUR 248.2 million of

reinsurance premium to external equalisation,

up by 16% relative to the year before. Ceded

reinsurance premium accounted for 16.8% of

total gross written premium or 1.0 percentage

point more than the previous year. Reinsurance

premium growth mainly resulted from the

increased volume of non-life insurance premium,

primarily those policies underwritten based on

the principle of free movement of services (FOS).

Higher reinsurance prices in the global reinsurance

market and the change in quota reinsurance

protection also contributed to its growth.

Changes in unearned premium related to the

reinsurance portion totalled EUR 14.0 million

compared to EUR 15.5 million in the preceding

year. The amount of EUR 57.3 million was received

from reinsurance (index 137). The change in gross

claims provisions for the reinsurance portion

amounted to EUR 29.4 million (index 113).

The Group also received EUR 49.1 million in

reinsurance fees and commissions (index 126).

The reinsurance result was negative and

amounted to EUR –98.3 million (compared to

EUR –90.9 million in 2021).

The reinsurance result of

Zavarovalnica Triglav

was

EUR –81.9 million (compared to EUR –89.5 million

in 2021).

7.9 Investment structure of the Triglav Group and Zavarovalnica Triglav

The Triglav Group pursues a relatively conservative investment policy in

order to achieve an adequate return on its investment portfolio, while

focusing on the security and liquidity of investments. The goal of investment

management is to achieve a high credit rating of the whole portfolio.

Environmental, social and governance (ESG) aspects are integrated into

investment processes, which are aligned with the Group’s strategic

ambitions in sustainable development.

The Group’s total ﬁnancial investments

including investment property,

unit-linked insurance contract investments and investments in associates

totalled EUR 3,271.2 million as at 31 December 2022, down by 11% relative

to 31 December 2021. The decrease in value is to the greatest extent a result

of the rise in interest rates on the ﬁnancial markets and the fall in value

on the stock markets. Their share in the Group’s total assets was down by

4.7 percentage points to 79.2%.

Financial investments (including investment property) of the Triglav Group

Financial investments

Index

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

Investment property

68,377,495

75,110,973

2.5%

Shares in associates

37,810,184

36,031,343

105

1.4%

1.2%

Shares and other ﬂoating-rate securities

234,776,667

330,960,660

8.7%

10.9%

Debt and other ﬁxed return securities

2,236,307,959

2,512,569,818

82.8%

82.4%

Loans given

4,645,899

4,525,184

103

0.2%

0.1%

Deposits with banks

96,853,602

70,472,827

137

3.6%

2.3%

Other ﬁnancial investments

6,480,742

5,810,984

112

0.2%

Financial investments of reinsurance companies in reinsurance contracts with cedents

14,044,977

13,340,360

105

0.5%

0.4%

Derivatives

20,317

0.0%

Total (1)

2,699,297,525

3,048,842,466

100.0%

Unit-linked insurance contract investments (2)

571,866,521

619,617,488

Total (1+2)

3,271,164,046

3,668,459,954

Through active investment, the Group

maintained

an investment portfolio composition comparable

to the balance as at 31 December 2021

. The bulk

(68.4%) of the whole portfolio, or 82.8% excluding

the unit-linked life insurance contract investments

portfolio, is represented by bonds invested in

developed markets, most of which have a high

credit rating. Both the value of the bond and

equity portfolio and the value of unit-linked life

insurance contract investments were affected by

the situation in the ﬁnancial markets. The majority

of this asset class is accounted for by assets

invested in mutual funds of the policyholders’

choice, mostly in funds managed by Triglav Skladi.

The decrease in the volume of investment property

compared to the previous year is the result of their

planned partial sale.

Investment structure of the Triglav Group (excluding unit-linked life insurance contract

investments) as at 31 December 2022

Debt and other ﬁxed return securities: 82.8%

Shares and other ﬂoating-rate securities: 8.7%

Deposits with banks: 3.6%

Investment property: 2.5%

Shares in associates: 1.4%

Other: 0.9%

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The detailed structure of the Group’s bond and equity portfolio is presented below, and the data for the

Company are presented at the end of this section.

The Group’s bond portfolio is of

high quality

and globally diversiﬁed. A total of 90.4% of bond investments

have an investment grade credit rating of at least “BBB” (vs. 90.9% as at 31 December 2021) and 58.2%

have at least the “A” credit rating (vs. 59.4% as at 31 December 2021).

Debt securities of the Triglav Group by credit rating

Debt securities of the Triglav Group by issuer sector

Debt securities

Index

Credit rating

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

AAA

484,876,559

438,921,752

110

21.7%

17.5%

306,967,815

376,763,744

13.7%

15.0%

510,662,035

677,949,441

22.8%

27.0%

BBB

718,482,959

789,294,818

32.1%

31.4%

Below BBB

170,946,072

185,667,718

7.6%

7.4%

Not rated

44,372,520

43,972,345

101

2.0%

1.8%

Total

2,236,307,959

2,512,569,818

100.0%

Debt securities

Index

Issuer sector

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

EMU bonds

991,672,234

1,204,550,177

44.3%

47.9%

Finance

459,553,557

451,913,446

102

20.5%

18.0%

Bonds of other countries

191,947,342

227,890,193

8.6%

9.1%

EU bonds (excluding EMU)

175,930,346

204,852,100

7.9%

8.2%

Non-cyclical sectors

124,865,616

106,676,738

117

5.6%

4.2%

Public goods

58,232,423

74,478,500

2.6%

3.0%

Communications

44,663,972

47,049,094

2.0%

1.9%

Cyclical sectors

50,702,125

46,995,262

108

2.3%

1.9%

Technology

31,756,559

39,255,888

1.4%

1.6%

Industry

41,403,083

37,525,233

110

1.9%

1.5%

Energy sector

33,041,595

36,662,200

1.5%

Raw materials

32,539,108

34,720,987

1.5%

1.4%

Total

2,236,307,959

2,512,569,818

100.0%

Debt securities

Index

Country of issuer

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

Germany

357,572,021

371,741,005

16.0%

14.8%

Slovenia

196,671,133

312,387,021

8.8%

12.4%

France

193,715,593

202,916,739

8.7%

8.1%

International ﬁnancial institutions

169,288,879

153,800,111

110

7.6%

6.1%

Spain

133,738,698

154,859,010

6.0%

6.2%

Italy

121,071,901

133,591,273

5.4%

5.3%

USA

120,969,189

132,660,828

5.4%

5.3%

Croatia

116,405,899

113,080,581

103

5.2%

4.5%

Netherlands

97,151,100

90,155,239

108

4.3%

3.6%

Austria

67,733,516

66,664,263

102

3.0%

2.7%

Other

661,990,029

780,713,748

29.6%

31.1%

Total

2,236,307,959

2,512,569,818

100.0%

Debt securities

Index

Issuer sector

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

Government

1,351,856,599

1,637,292,470

60.5%

65.2%

Financial

458,582,957

450,896,480

102

20.5%

17.9%

Corporate

424,897,803

423,363,902

100

19.0%

16.8%

Structured

970,601

1,016,966

0.0%

Total

2,236,307,959

2,512,569,818

100.0%

issuer sector

, the largest share (60.5%) in the Group’s bond portfolio in 2022 continued to be

accounted for by government bonds. Compared to 2021, their share decreased by 4.7 percentage points

primarily due to price ﬂuctuations, whereas the shares of ﬁnancial and corporate bonds increased in

equal proportions.

Unit-linked life insurance contract investments data are excluded.

Debt securities of the Triglav Group by issuer sector/activity

Debt securities of the Triglav Group by issuer country

issuer country

, the majority of the portfolio is accounted for by debt securities of issuers from the

countries with a high credit rating. The changed exposure to individual countries was mainly inﬂuenced

by price ﬂuctuations and tactical adjustments of some positions.

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The Triglav Group set out strategic objectives relating to sustainability (see sections

4. Strategy and

plans

and

12. Sustainable development

for more details). They are the basis for taking into account

environmental, social and governance (ESG) factors

in the management of the Group’s investments

and exercising its management rights when making decisions related to sustainable development with

those issuers in its portfolio where this is possible.

The Group is increasing

the share of sustainable ﬁxed-income investments

in line with its strategic

ambitions. Their share in the bond portfolio almost doubled in 2021 compared to the previous year and

further increased in 2022. As at the reporting date, sustainable ﬁxed-income investments reached

EUR 222.9 million, representing an 10.0% share of the bond portfolio.

Sustainable (ESG) ﬁxed-income investments of the Triglav Group

Sustainable ﬁxed income investments

Share in debt securities

31 Dec. 2022

31 Dec. 2021

31 Dec. 2020

31 Dec. 2022

31 Dec. 2021

31 Dec. 2020

Social impact bonds*

98,060,591

83,630,721

33,278,595

4.4%

3.3%

1.3%

Green bonds**

110,964,143

104,433,167

67,424,385

5.0%

4.2%

2.6%

Sustainable bonds***

13,839,732

16,448,265

3,629,090

0.6%

0.7%

0.1%

Total ESG bonds

222,864,466

204,512,153

104,332,071

10.0%

8.1%

4.1%

Bonds with a social impact are an instrument for funding social services.

Green bonds are an instrument for funding environmental projects, the funds of which are intended for ecologically efﬁcient products,

technologies and processes, pollution prevention and control, sustainable management of natural resources, sustainable management of

water resources, renewable energy use, energy efﬁciency and clean transport.

*** Sustainable bonds are an instrument for funding sustainability projects and a combination of green and social impact bonds. Funding is often

conditional on achieving sustainability goals.

Equity investments

, which comprise shares and other variable-income securities and investments in

associates, amounted to EUR 272.6 million as at 31 December 2022. They accounted for 8.3% of the

Group’s entire portfolio, or 10.1% of the investment portfolio excluding unit-linked life insurance contract

investments. The portfolio also includes the category

Other funds

, which comprises mostly alternative

funds, among which the alternative fund managed by the associate Trigal holds a signiﬁcant share. The

total volume of the equity portfolio fell by 26% compared to the preceding year, which also resulted from

the sale of certain investments.

Equity investments

Index

Equity investment type

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

60,621,118

128,582,339

22.2 %

35.0 %

Equity funds

50,307,701

85,330,024

18.5 %

23.3 %

Bond funds

52,981,904

62,836,072

19.4 %

17.1 %

Money market funds

7,530,672

4,177,739

180

2.8 %

1.1 %

Other funds

101,145,457

86,065,829

118

37.1 %

23.5 %

Total

272,586,851

366,992,003

100.0 %

Equity investments

Index

Geographic area

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

Slovenia

54,651,955

103,490,296

20.0%

28.2%

Developed markets

201,749,712

244,542,137

74.0%

66.6%

Developing markets

12,033,289

13,588,353

4.4%

3.7%

Balkans

4,151,895

5,371,218

1.5%

Total

272,586,851

366,992,003

100.0%

Equity investments

Index

Issuer sector

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

Highly diversiﬁed activities

201,820,111

222,711,485

74.0%

60.7%

Non-cyclical sectors

35,201,684

75,540,556

12.9%

20.6%

Finance

18,627,715

25,015,182

6.8%

Technology

4,895,154

12,932,690

1.8%

3.5%

Energy sector

443

12,679,131

0.0%

3.5%

Cyclical sectors

7,472,384

8,477,152

2.7%

2.3%

Public goods

3,111,515

3,428,188

1.1%

0.9%

Industry

1,018,292

3,399,847

0.4%

0.9%

Communications

438,941

2,210,403

0.2%

0.6%

Raw materials

612

597,371

0.0%

0.2%

Total

272,586,851

366,992,003

100.0%

The structure of equity investments of the Triglav Group

Equity investments of the Triglav Group by region

Equity investments of the Triglav Group by issuer sector/activity

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Financial investments

Index

31 Dec. 2022

31 Dec. 2021

2022/2021

31 Dec. 2022

31 Dec. 2021

Investment property

43,377,173

43,840,055

2.3%

2.0%

Investments in subsidiaries and associates

227,312,214

173,618,679

131

12.0%

7.9%

Shares and other ﬂoating rate securities

151,148,306

204,009,208

8.0%

9.3%

Debt and other ﬁxed return securities

1,446,813,411

1,736,539,693

76.3%

79.4%

Loans given

4,446,916

5,155,689

0.2%

Deposits with banks

19,499,355

19,660,793

1.0%

0.9%

Other ﬁnancial investments

3,264,537

3,278,363

100

0.2%

0.1%

Derivatives

20,317

0.0%

Total (1)

1,895,861,912

2,186,122,797

100.0%

Unit-linked insurance contract investments (2)

490,618,848

539,417,972

Total (1+2)

2,386,480,760

2,725,540,769

Financial investments of Zavarovalnica Triglav

7.10 Investment in own-use real property

and equipment

The Triglav Group invested EUR 10.1 million in property, plant and equipment and EUR 12.6 million

in intangible assets (software and property rights). The parent company invested EUR 6.9 million in

property, plant and equipment and EUR 9.0 million in intangible ﬁxed assets.

By actively managing own-use real property and prudently investing in it, its value is being increased.

In addition, its utilisation is being improved and its functionality increased. Renovation works are

carried out in accordance with the Triglav Group’s sustainable development guidelines, which include

improved energy efﬁciency and a lower carbon footprint, in addition to better use of the premises.

The rationalisation and optimisation of the premises takes place in accordance with the approved

plan for 2021–2025. To this end, the energy and functional renovation of strategic real property,

both for own use and investment, continued. In 2022, special attention continued to be paid to

measures designed to protect health and ensure the safe use of real property for employees, clients,

tenants and other users.

At Group level, minimum standards for ﬂexible arrangement of workplace and points of sale are

adopted, which comply with the international examples of good practice to modernise operations and

make them more effective. If necessary, these standards will be updated according to new ﬁndings and

guidelines in the business environment.

In 2022, the Company began to implement a

hybrid workplace

pilot project; for more information see

Section

11.2 Transformation and digitalisation

. Its implementation will result in a more modern and

ﬂexible arrangement, which will be better adapted to the different forms of employees’ work (taking

into account working from home), their need for rest during the working day and interaction, while

being geared towards the better use of the premises.

IT support for real property management enables secure and complete record keeping, fast and

accurate reporting and the implementation of various administration processes. In 2022, the IT

support’s software version was upgraded by including applications for investment management,

cost management and energy accounting. Upgrades will be fully rolled out in 2023.

The value of the Group’s real property and the excellent occupancy and proﬁtability of investment

property are maintained with systematic investment in real property of strategic importance and the

sale of non-strategic real property. In 2022, several pieces of strategically less important real property

was sold (business premises, land, holiday facilities). The sales process of one of the most important

real property in the Company’s portfolio, which was owned by Triglav, Upravljanje nepremičnin, was

completed. In addition, the positive effects of the sale of the development land from 2021 were seen.

Moreover, the project to rationalise own-use real property and locations was carried out.

7.11 Asset management

Asset management

comprises the management of the parent company’s own insurance portfolios

(assets backing liabilities and guarantee funds), saving of clients through the Group's life and pension

insurance companies, asset management by Trigal and the management of clients’ assets in mutual

funds and discretionary mandates by Triglav Skladi.

The value of assets under management of the Triglav Group as at 31 December 2022:



own insurance portfolio: EUR 2,699.6 million (index 89),



mutual funds and discretionary mandate assets at Triglav Skladi: EUR 1,389.5 million (index 90),



investment management at Trigal: EUR 99.6 million (index 109).

Asset and investment fund management market

Due to high inﬂation, the war in Ukraine and the shutdown of the Chinese economy as a result of

the COVID-19 pandemic, the prices of all major asset classes fell in the capital markets. According to

the European Fund and Asset Management Association (EFAMA), the volume of

the European asset

management market

(investment funds and discretionary mandates) decreased by EUR 3.8 trillion

or 12% by Q3 2022, which is primarily due to the fall in the value of the markets, while inﬂows into

the funds were also under pressure. By the end of October, outﬂows from UCITS funds reached

EUR 238 billion, with EUR 78 billion outﬂow from equity funds, EUR 26 billion from money market funds

and EUR 160 billion from bond funds. Net inﬂows of EUR 25 billion were attracted by multi-asset funds.

Zavarovalnica Triglav

, ﬁnancial investments, including investment property, amounted to

EUR 2,386.5 million as at 31 December 2022, down by 12%.

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Alternative investment funds (AIF) also experienced outﬂows of EUR 117 billion by the end of October.

The European investment fund industry (UCITS funds) managed EUR 12 trillion, while AIF managed

EUR 7.1 trillion at the end of October.

As at 31 December 2022, a total of ﬁve asset management companies operated

in Slovenia

, which

managed the total net asset value of EUR 3.9 billion in

mutual funds

, down by 9% relative to the year

before. The decrease was a result of the decline in value on the capital markets, but in contrast to the

European market, net inﬂows in Slovenia were positive and amounted to EUR 209 million.

As at

31 December 2021, Triglav Skladi held a 31.3% market share

(vs. 31.8% in 2021), remaining one of the

leading managers of assets in investment funds in the Slovenian market. With respect to mutual funds,

the company offers 18 different investment policies: conservative investments (two bond funds and

a money market fund), moderately risky investments (ﬂexible, mixed and defensive funds) and dynamic

equity investments (equity funds). As at 31 December 2022, the company managed the portfolio of

110,000 investors worth

EUR 1.2 billion in mutual funds

, down by 10% compared to the year before. The

value of net assets under management increased by EUR 68.0 million due to net inﬂows and decreased

by EUR 205.0 million due to the situation in the capital markets. The net effect was therefore reﬂected

in a decrease in the value of net assets of EUR 137.1 million.

A total of six companies provided

discretionary mandate services

, of which four were asset

management companies. As at 31 December 2022, the latter managed EUR 2.5 billion in discretionary

mandate assets, up by 34% relative to the previous year. Triglav Skladi held a 6.2% market share in

the discretionary mandate segment (vs. 9.0% in 2021). Triglav Skladi’s discretionary mandate assets

amounted to EUR 154.5 million. Despite positive inﬂows of EUR 9.3 million, they decreased by EUR 12.7

million relative to the previous year due to the drop in value in the capital markets.

In addition to mutual funds, the company also offers six investment combinations as predeﬁned

structured mutual fund baskets, which correspond to the risk proﬁles of six different client segments.

In Bosnia and Herzegovina, the Group is present on the asset management market via

Triglav Fondovi

which manages two open-end funds.

Triglav Skladi, as the Group’s main asset management company, also manages the Group’s unit-

linked life insurance assets; this includes implementing the Financial Objectives investment strategy,

which enables clients to actively adjust their portfolios according to the lifecycle principle, and Active

Investment Packages, which correspond to different client segments adjusted to the risk proﬁle. In

addition, Triglav Skladi manages ﬁve portfolios of guarantee funds backing supplemental voluntary

pension insurance: Triglav Drzni, Triglav Zmerni, Delniški Skupni pokojninski sklad, Mešani Skupni

pokojninski sklad and Obvezniški Skupni pokojninski sklad.

Integration of environmental, social and governance (ESG) aspects into

asset management

Asset management may help to achieve higher returns in the long run by taking into account key

sustainability risks. The Triglav Zeleni equity fund is a sustainability fund that complies with Article

8 of Regulation (EU) 2019/2088 on sustainability-related disclosures in the ﬁnancial services sector. It

primarily pursues an environmental goal, namely striving to implement the Paris Agreement as regards

the limitation of the increase in the average global temperature by 1.5 °C compared to the pre-industrial

era. Moreover, the company pays attention to social impacts and does not invest in companies when it

is clear that there were serious problems and incidents related to human rights.

In the management of ﬁnancial instruments, clients were offered the new GFI Equity – Socially

Responsible investment policy, which complies with Article 8 of Regulation (EU) 2019/2088. The

aforementioned investment policy pursues the MSCI Climate Paris Aligned Index, which is committed

to exceeding the standards adopted in the Paris Agreement. When making investment decisions, the

company therefore considers the carbon footprint and exposure to companies operating in the fossil fuel

sector as the principal adverse impact (PAI). Through a careful review of each investment, it is checked

whether a company ensures minimum protective measures related to good corporate governance.

Active ownership

In the context of the investment process, the possibility to inﬂuence the corporate governance of

companies in the portfolio is assessed, when ownership rights and the size of the participating

interest allow it. Active ownership is key for the adoption of better business policies and practices of

companies (or issuers of ﬁnancial instruments) and improves their performance. It is exercised through

communication with the issuer or through the exercise of rights deriving from ﬁnancial instruments,

and include participation, voting and proposing agenda items at issuers’ general meetings.

See Section

11.3 Development activities related to asset management

for more information on

strengthening the asset management activity.

GRI 2-24

SASB: FN-IN-410a.1

SASB: FN-AC-410a.3

Financial result of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Financial result of the Triglav Group and

Zavarovalnica Triglav



The Triglav Group generated a proﬁt before tax of EUR 134.5 million.



The Group’s combined ratio was favourable at 88.1%,

remaining within the target range.



Higher interest rates and the fall in the prices of shares on the

ﬁnancial markets affected the lower return on investment of the Group.

The Triglav Group performed well in 2022 despite the deteriorated economic situation.

Consolidated

proﬁt before tax

amounted to EUR 134.5 million, up by 1% compared to the previous year.

Net proﬁt

EUR 110.2 million fell by 2%. The increased business volume and the release of claims provisions created

in past periods effectively compensated for higher gross claims paid and gross operating expenses

due to the higher activity of households and businesses, rising inﬂation and other impacts from the

environment. In estimating claims provisions, the trends of the best estimate introduced by IFRS 17

were followed, bringing their amount closer to the estimated value according to IFRS 17. Return on

investment decreased due to the unfavourable situation in the ﬁnancial markets and the impairment of

investments. Gains on disposal of investment property and some equity investments also had a positive

impact on proﬁt.

Net return on equity

increased by 0.5 percentage point to 13.1%.

Zavarovalnica Triglav

posted a

proﬁt before tax

of EUR 140.4 million, an increase of 64% over the

previous year. In addition to the aforementioned one-off events, the growth was largely inﬂuenced

by income from dividend payments from subsidiaries.

Net proﬁt

also grew by 64% and totalled

EUR 120.5 million. Net return on equity of the parent company increased by 8.5 percentage points

to 19.6%.

The Group’s

combined ratio in non-life and health insurance

was within the favourable long-term target

range and stood at 88.1%, down by 0.8 percentage point relative to 2021. The decrease is the result of

an improved

claims ratio

(by 2.0 percentage points to 59.4%), which was inﬂuenced by the growth of

net premium income and the release of claims provisions. On the other hand, the increase in operating

expenses and other insurance expenses affected the higher

expense ratio

(up by 1.2 percentage points

to 28.7%).

The combined ratios in the Triglav Group and individual insurance companies

Insurance company

2022

2021

Change

Zavarovalnica Triglav

77.2%

81.8%

-4.6 p.p.

Triglav, Zdravstvena zavarovalnica

99.7%

96.0%

3.8 p.p.

Pozavarovalnica Triglav Re

93.2%

90.5%

2.7 p.p.

Triglav Osiguranje, Zagreb

103.9%

98.8%

5.2 p.p.

Triglav Osiguranje, Belgrade

99.7%

0.0 p.p.

Lovćen Osiguranje, Podgorica

89.9%

93.7%

-3,8 p.p.

Triglav Osiguranje, Sarajevo

91.3%

98.0%

-6.6 p.p.

Triglav Osiguranje, Banja Luka

102.6%

112.1%

-9.5 p.p.

Triglav Osiguruvanje, Skopje

101.0%

102.1%

-1.1 p.p.

The Triglav Group

88.1%

88.9%

-0.8 p.p.

Financial result of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

8.1 Total revenue, net premium income,

claims incurred and operating expenses

Total revenue

increased by 10% and amounted to EUR 1,599.3 million. It is composed of gross

written insurance and coinsurance premiums in the amount of EUR 1,479.6 million (index 109), other

insurance income in the amount of EUR 59.9 million (index 123) and other income in the amount of

EUR 59.8 million (index 112).

Net premium income

rose by 6% to EUR 1,189.9 million. Net premium income from non-life insurance

grew by 7%, from life and pension insurance by 6% and from health insurance by 3%. Net premium income

comprises gross written premium in the amount of EUR 1,479.6 million less written premium ceded to

reinsurance and coinsurance in the amount of EUR 255.0 million (index 115) and adjusted by the change

in net unearned premium of EUR –34.7 million (compared to –12.2 million in the previous year).

Net claims incurred

of EUR 746.7 million were higher by 4%. The highest growth (17%) was recorded

in the health insurance segment due to higher gross claims paid to compensate for the healthcare

services that were unavailable due to the pandemic last year. Net claims incurred in non-life insurance

increased by 2%, whereas in life and pension insurance they fell by 1%. Net claims incurred comprise

gross claims paid in the amount of EUR 832.2 million (index 113) less reinsurers’ and coinsurers’ shares

in gross claims paid in the amount of EUR 59.9 million (index 133), adjusted by the change in net claims

provisions of EUR –33.0 million (higher by EUR 16.2 million in 2021) and increased by equalisation

scheme expenses for supplemental health insurance in the amount of EUR 7.4 million (index 103).

Operating expenses

(acquisition costs and other operating expenses) amounted to EUR 301.9 million,

up by 13%.

Acquisition costs

rose by 14%, predominantly due to premium growth, a higher volume of

business based on the principle of free movement of services (FOS) in the EU and a higher premium

volume from insurance policies taken out via external sales channels.

Other operating expenses

went up

by 10%. The share of

operating expenses from insurance operations

(includes all functional cost groups)

in gross written premium was 22.9%, up by 0.7 percentage point compared to the year before.

See Section

7.7 Gross operating expenses

for more information on operating expenses.

Financial result of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

8.2 Income and expenses from ﬁnancial assets

Income, expenses and return on investment of the Triglav Group

2022

2021

Income and

expenses from

investments,

including unit-linked

insurance assets

Income and

expenses from

unit-linked life

insurance assets

(VEP – unit value)*

Income and

expenses from

investments and

return on investment

(excluding VEP –

unit value)

Income and

expenses from

investments,

including unit-linked

insurance assets

Income and

expenses from

unit-linked life

insurance assets

(VEP – unit value)*

Income and

expenses from

investments and

return on investment

(excluding VEP –

unit value)

INCOME FROM FINANCIAL ASSETS

93,398,564

8,374,638

85,023,926

156,783,225

87,798,280

68,984,945

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

1,842,183

1,444,054

- interest

34,401,619

556,163

33,845,456

34,281,279

1,702,475

32,578,804

- dividends

6,151,738

1,207,406

4,944,332

6,069,730

1,030,544

5,039,186

- change in the fair value

5,085,853

3,968,877

1,116,976

90,078,182

75,804,534

14,273,648

- gains on disposal

37,775,442

572,224

37,203,218

16,301,340

6,106,275

10,195,065

- other ﬁnancial income

8,141,729

2,069,968

6,071,761

8,608,640

3,154,452

5,454,188

EXPENSES FROM FINANCIAL ASSETS AND LIABILITIES

201,644,899

100,931,963

100,712,936

31,978,417

5,483,554

26,494,863

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

145,631

- interest

- change in the fair value

132,594,207

94,635,781

37,958,426

16,138,516

4,087,778

12,050,738

- losses on disposal

50,341,763

5,725,743

44,616,020

7,122,739

937,693

6,185,046

- permanent impairment

9,034,736

33,629

- other ﬁnancial expenses

9,674,193

570,439

9,103,754

8,537,902

458,083

8,079,819

Return on investment

–15,689,010

42,490,082

The effect of the return on unit-linked life insurance contract investments (VEP – unit value) must be considered together with the change in insurance technical provisions for unit-linked insurance contracts and, therefore, it has no effect on the return on investment.

Income from investments, including

income from investments in associates and

unit-linked insurance contract investments

decreased by 40% to EUR 93.4 million. Gains on

disposal of investments increased by 132% to

EUR 37.8 million, primarily due to disposal of

some equity investments, while interest income

of EUR 34.4 million remained at the level of the

previous year (index 100). Changes in the fair

value decreased to EUR 5.1 million (compared

to EUR 90.1 million last year), mainly as a result

of rising interest rates. Other ﬁnancial income

dropped to EUR 8.1 million (index 95), whereas

income from dividends in the amount of

EUR 6.2 million was slightly higher than last year

(index 101).

Expenses from investments, including expenses

from investments in associates and unit-linked

insurance contract investments

, increased to

EUR 201.6 million (index 631). Due to the fall

in the value of bonds resulting from the rise in

interest rates and the decrease in the value of

equity investments, expenses from changes in

the fair value rose to EUR 132.6 million (compared

to EUR 16.1 million in the previous year).

Due to higher interest rates and consequently

lower bond prices, losses on disposal increased,

amounting to EUR 50.3 million (index 707).

Other ﬁnancial expenses were higher by 13% and

totalled EUR 9.7 million. Return on investment

in 2022 was also signiﬁcantly affected by the

permanent impairment of Russian bonds,

amounting to EUR 9.0 million.

Unit-linked life insurance contract investments

decreased due to the fall in share prices to which

the majority of policyholders’ investments under

these insurance contracts are tied (a drop in prices

of fund units).

The Group’s return on investment

(excluding

unit-linked insurance contract investments) was

negative and amounted to EUR –15.7 million

(compared to EUR 42.5 million in the preceding

year). The decrease in the value of equity and

bond investments resulted from the situation in

the ﬁnancial markets caused by rising interest

rates and share price falls, which was reﬂected

in higher net expenses due to changes in the fair

value and lower realised net capital gains.

Return on investment of the Triglav Group

(excluding unit-linked life insurance contract

investments) in 2020–2022

2020

2021

2022

72.1

42.5

–15.7

Financial result of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2022

2021

Income and

expenses from

investments,

including unit-linked

insurance assets

Income and

expenses from

unit-linked life

insurance assets

(VEP – unit value)*

Income and

expenses from

investments and

return on investment

(excluding VEP –

unit value)

Income and

expenses from

investments,

including unit-linked

insurance assets

Income and

expenses from

unit-linked life

insurance assets

(VEP – unit value)*

Income and

expenses from

investments and

return on investment

(excluding VEP –

unit value)

INCOME FROM FINANCIAL ASSETS

97,581,935

3,813,608

93,768,327

123,792,784

79,523,179

44,269,605

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

- interest

19,662,989

103,243

19,559,746

19,863,123

86,419

19,776,704

- dividends

37,859,760

597,236

37,262,524

12,824,634

473,710

12,350,924

- change in the fair value

2,065,425

2,009,301

56,124

73,502,582

71,590,148

1,912,434

- gains on disposal

34,325,465

561,193

33,764,272

14,888,504

5,941,140

8,947,364

- other ﬁnancial income

3,668,296

542,635

3,125,661

2,713,941

1,431,763

1,282,178

EXPENSES FROM FINANCIAL ASSETS AND LIABILITIES

153,435,580

86,916,160

66,519,420

19,453,734

3,763,418

15,690,316

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

- interest

- change in the fair value

89,339,217

80,992,271

8,346,946

6,127,181

2,777,976

3,349,205

- losses on disposal

46,526,684

5,641,837

40,884,847

6,870,017

837,707

6,032,310

- permanent impairment

10,353,228

1,066,400

- other ﬁnancial expenses

7,216,451

282,052

6,934,399

5,390,136

147,734

5,242,402

Return on investment

27,248,906

28,579,288

Income, expenses and return on investment of Zavarovalnica Triglav

Zavarovalnica Triglav’s return on investment

(excluding unit-linked insurance contract investments)

amounted to EUR 27.2 million, down by 5% over the previous year. The generated income was mainly

positively inﬂuenced by higher dividend payments from subsidiaries, dividends from listed companies

and realised gains on disposal of equity investments. The main negative impact was realised losses

on disposal of bond investments. Higher impairments of investments mostly include impairments of

Russian bond investments, equity and bond funds, and capital investments of subsidiaries.

Financial result of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

8.3 Change in other insurance

technical provisions and other

income and expenses

Other insurance technical provisions

fell by EUR 79.0 million (compared to

EUR 2.1 million in the previous year), predominantly due to the decline in

mathematical provisions (EUR –67.6 million) and other insurance technical

provisions for health insurance (EUR –11.5 million). In health insurance, the

bulk (EUR 6.3 million) refers to the release of provisions for unexpired risks

deﬁned in the Act Determining Temporary Measures to Mitigate and Remedy

the Consequences of COVID-19 (PKP5), which stipulated that the provisions

are also intended for the payment of healthcare services in the share of

supplemental health insurance until they are used up or until the measure

expires at the end of 2024.

Change in insurance technical provisions for unit-linked insurance contracts

was negative in the amount of EUR 43.8 million (in 2021 these provisions

rose by EUR 112.7 million) due to a decrease in price of fund units. The

majority of

expenses for bonuses and discounts

of EUR 10.8 million (index

95) are accounted for by expenses of the parent company (EUR 9.2 million),

down by 13% as a result of lower provisions for bonuses.

Other insurance income

, excluding fees and commissions, increased by

9% and reached EUR 10.8 million. The growth is primarily the result of

higher income from external recovery and the elimination of impairment

adjustment, as well as higher interest income from subrogation receivables.

Other insurance expenses

, excluding fees and commissions, grew by 22%

to EUR 20.5 million, mainly due to higher contributions to cover uninsured

vehicles and higher recovery costs of the health insurer.

Net fee and

commission income

rose by 164% to EUR 10.2 million primarily due to the

high growth of written premium ceded to reinsurance.

Other income

was up by 12%, amounting to EUR 59.8 million. Its high

growth mainly resulted from higher income from the sale of investment

property. More than half of other income is accounted for by income from

the management of clients’ assets in the amount of EUR 30.6 million, up by

1% relative to the year before.

Other expenses

amounted to EUR 70.8 million

(index 121), the bulk of which is accounted for by expenses of the Group’s

non-insurance companies.

Income statement of the Triglav Group

2022

2021

Index

Net premium income

1,189,905,615

1,119,846,051

106

gross written premium

1,479,557,087

1,352,975,550

109

ceded written premium

-254,986,410

-220,949,875

115

change in unearned premium reserve

-34,665,062

-12,179,624

285

Income from investments in subsidiaries and associates

1,842,183

1,444,054

128

proﬁt on equity investments accounted for using the equity method

1,842,183

1,444,054

128

other income from investments in subsidiaries and associates

Income from investments

91,556,381

155,339,171

interest income calculated using the effective interest method

34,401,619

34,281,279

100

gains on disposals

37,775,442

16,301,340

232

other income from investments

19,379,320

104,756,552

Other income from insurance operations

59,934,985

48,794,300

123

fee and commission income

49,184,889

38,916,088

126

other income from insurance operations

10,750,096

9,878,212

109

Other income

59,826,129

53,334,060

112

Net claims incurred

746,732,431

715,028,788

104

gross claims paid

832,230,541

736,580,050

113

reinsurers' share

-59,907,680

-44,884,460

133

changes in claims provisions

-32,975,668

16,152,394

equalisation scheme expenses for supplemental health insurance

7,385,238

7,180,804

103

Change in other insurance technical provisions (excluding ULI)

-79,041,779

-2,113,408

3,740

Change in insurance technical provisions for unit-linked insurance contracts

-43,787,917

112,661,349

Expenses for bonuses and discounts

10,798,750

11,404,143

Operating expenses

301,928,130

266,857,908

113

acquisition costs

211,429,288

184,911,170

114

other operating expenses

90,498,842

81,946,738

110

Expenses from investments in subsidiaries and associates

145,632

loss on investments accounted for using the equity method

145,632

other expenses from ﬁnancial assets and liabilities

Expenses from investments

201,644,899

31,832,786

633

loss on impairment of investments

9,034,736

33,628

26,867

loss on disposal on investments

50,341,763

7,122,739

707

other expenses from investments

142,268,400

24,676,419

577

Other insurance expenses

59,496,583

51,915,940

115

Other expenses

70,753,966

58,379,653

121

expenses from ﬁnancing

2,731,227

2,729,286

100

other expenses

68,022,739

55,650,367

122

Proﬁt before tax

134,540,230

132,644,845

101

Income tax expense

24,323,552

19,679,152

124

Net proﬁt for the period

110,216,678

112,965,693

Net proﬁt/loss attributable to the controlling company

110,459,978

112,761,814

net proﬁt/loss attributable to the non-controlling interest holders

-243,300

203,879

Financial result of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Financial result ratios of the Triglav Group

Financial result ratios

2022

2021

2020

Loss ratio

59.4%

61.4%

63.1%

Expense ratio

28.7%

27.5%

28.1%

Combined ratio

88.1%

88.9%

91.2%

Operating expenses of insurance business in gross written premiums

22.9%

22.2%

22.1%

Gross written premium per company employee* (in EUR)

317,611

292,523

268,516

The average number of employees at the insurance companies and the reinsurance company of the Triglav Group was taken into account.

The structure of proﬁt before tax from insurance operations of the Triglav Group*

2022

2021

Non-life

Life and

pension

Health

Total

Non-life

Life and

pension

Health

Total

Proﬁt before tax from underwriting activities

86,754,031

15,929,355

3,019,458

105,702,844

79,745,847

13,457,141

7,197,026

100,400,014

Proﬁt before tax from investment activities

17,248,981

643,965

-1,030,725

16,862,221

17,490,477

6,171,883

788,554

24,450,914

Proﬁt before tax from insurance operations

104,003,012

16,573,320

1,988,733

122,565,066

97,236,324

19,629,024

7,985,580

124,850,928

Proﬁt before tax from non-insurance operations

11,975,163

7,793,918

Total proﬁt before tax

134,540,230

132,644,845

Proﬁt before tax of the Group’s

non-life and health insurance

segments

amounted to EUR 106.0 million, up by 1% or EUR 0.8 million relative to

the preceding year. The higher proﬁt from non-life insurance underwriting

activities was inﬂuenced by higher premium volume and a partial release

of claims provisions created in previous years. The decrease in proﬁt from

health insurance underwriting activities was mainly inﬂuenced by the high

increase in the frequency of supplemental health insurance claims. The

decrease in proﬁt from ﬁnancial investments was inﬂuenced by the negative

result of health insurance due to losses on disposal of investments and the

impairment of bonds.

Proﬁt before tax of the Group’s

life and pension insurance

segments

amounted to EUR 16.6 million, down by EUR 3.1 million relative to the

previous year. Zavarovalnica Triglav’s proﬁt amounted to EUR 19.2 million,

an increase of EUR 12.1 million compared to the year before. It was largely

inﬂuenced by the release of additional provisions from the liability adequacy

test in the amount of EUR 16.8 million. The rise in interest rates on the

ﬁnancial markets also resulted in a decrease in the value of investments,

but these were mostly offset by the reduction of provisions created in the

past within mathematical provisions. The exception were the provisions

for failing to achieve the guaranteed return on pension insurance, which

were created for this purpose in the amount of EUR 4.5 million.

The parent

company’s proﬁt before tax was also inﬂuenced by higher proﬁt before tax

from life insurance underwriting activities of EUR 5.3 million, the lower cost

of life insurance indexation of EUR 1.2 million as a result of rising inﬂation

and higher operating expenses in the amount of EUR 4.0 million. Proﬁt

before tax of other Group members is lower by EUR 14.8 million, primarily

due to additional provisions for failing to achieve the guaranteed return at

Triglav, pokojninska družba. In 2021, the Group released EUR 7.8 million in

provisions as a result of the LAT; in 2022, the Group formed provisions for

failing to achieve the guaranteed return on pension insurance in the amount

of EUR 5.1 million.

Proﬁt before tax of

non-insurance operations

reached EUR 12.0 million.

Compared to last year, it was higher by EUR 4.2 million mainly due to the

realisation of gains on disposal of investment property.

Proﬁt from return on investment is reduced by the return guaranteed by the Group’s insurance companies to life insurance policyholders in the form of a guaranteed return determined in insurance contracts. In addition,

return on investment is reduced by the increase in mathematical provisions due to lower internally set maximum interest rate used for the valuation of life insurance liabilities.

The structure of profit before tax of

the Triglav Group in 2022 and 2021

2021

Profit before tax from underwritting activities

Profit before tax from investment activities

2022

80%

86%

20%

14%

Financial result of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Income statement of Zavarovalnica Triglav

2022

2021

Index

Net premium income

627,675,389

598,755,000

105

gross written premium

868,863,623

794,350,103

109

ceded written premium

-222,977,014

-187,969,749

119

change in unearned premium reserve

-18,211,220

-7,625,354

239

Income from investments in subsidiaries and associates

32,887,342

8,179,885

402

proﬁt on equity investments accounted for using the equity method

other income from investments in subsidiaries and associates

32,887,342

8,179,885

402

Income from investments

64,694,593

115,612,898

interest income calculated using the effective interest method

19,620,922

19,685,884

100

gains on disposals

34,325,465

14,888,504

231

other income from investments

10,748,206

81,038,510

Other income from insurance operations

58,536,290

45,387,033

129

fee and commission income

50,904,726

38,196,377

133

other income from insurance operations

7,631,564

7,190,656

106

Other income

11,036,337

8,825,846

125

Net claims incurred

346,407,269

365,137,225

gross claims paid

452,455,851

408,868,382

111

reinsurers’ share

-49,939,407

-35,818,958

139

changes in claims provisions

-56,109,175

-7,912,199

709

Change in other insurance technical provisions (excluding ULI)

-56,716,599

-13,989,227

405

Change in insurance technical provisions for unit-linked insurance contracts

-47,072,818

91,860,583

Expenses for bonuses and discounts

9,167,812

10,490,736

Operating expenses

194,264,584

170,334,866

114

acquisition costs

142,569,005

124,268,560

115

other operating expenses

51,695,579

46,066,306

112

Expenses from investments in subsidiaries and associates

4,002,475

1,087,047

368

loss on investments accounted for using the equity method

other expenses from ﬁnancial assets and liabilities

4,002,475

1,087,047

368

Expenses from investments

149,433,105

18,366,687

814

loss on impairment on investments

6,433,441

loss on disposal on investments

46,526,684

6,870,017

677

other expenses from investments

96,472,980

11,496,670

839

Other insurance expenses

27,910,368

25,298,497

110

Other expenses

27,075,891

22,485,637

120

expenses from ﬁnancing

2,289,560

2,277,892

101

other expenses

24,786,331

20,207,745

123

Proﬁt before tax

140,357,864

85,688,611

164

Income tax expense

19,885,791

12,273,062

162

Net proﬁt for the period

120,472,073

73,415,549

164

Financial result ratios of Zavarovalnica Triglav

Financial result ratios

2022

2021

2020

Return on equity

19.6%

11.1%

9.5%

Loss ratio

45.2%

50.4%

54.8%

Expense ratio

32.0%

31.4%

31.3%

Combined ratio

77.2%

81.8%

86.1%

Operating expenses of insurance business in

gross written premiums

25.5%

24.6%

25.0%

Financial position of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Financial position of

the Triglav Group and

Zavarovalnica Triglav



Despite the challenging situation in the ﬁnancial markets, the Triglav Group

maintained its ﬁnancial strength and capital adequacy around the lower

end of its target range.



Balance sheet total of the Triglav Group as at 31 December 2022 stood at

EUR 4.1 billion, down by 6% relative to the preceding year.



Total equity of the Triglav Group and Zavarovalnica Triglav decreased due to

the reduction of fair value reserve as a result of the situation in the ﬁnancial

markets and a higher dividend payout.

9.1 Equity and liabilities

The Group’s total equity

as at 31 December 2022 amounted to EUR 752.8 million, down by 19% relative

to the preceding year, while

Zavarovalnica Triglav’s total equity

declined by 18% to EUR 552.1 million.

The decrease in value is predominantly the result of a decrease in fair value reserve and a higher

dividend payout. Total equity in the Group’s total balance sheet liabilities declined by 3.1 percentage

points to 18.2%. Equity attributable to the controlling company fell by 19% to EUR 749.4 million.

The non-controlling interests increased to EUR 3.4 million (index 137), mainly due to the inclusion of

Triglav Fondovi in the consolidated ﬁnancial statements under the full consolidation method. The share

capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary shares.

Due to the decrease in the value of available-for-sale ﬁnancial assets, the Group’s

other comprehensive

income

was negative in the amount of EUR –97.9 million (in 2021 other comprehensive income was

positive in the amount of EUR 101.5 million). As a result,

fair value reserve

decreased and amounted to

EUR –129.5 million as at 31 December 2022 (compared to EUR 77.8 million as at 31 December 2021).

Share premium

amounted to EUR 50.3 million and remained at a level approximately equal to the

2021 year-end (index 100).

Reserves from proﬁt

in the amount of EUR 481.8 million grew by 14% relative to the year before and

comprise legal and statutory reserves in the amount of EUR 20.3 million, contingency reserves of EUR

640 thousand and other reserves from proﬁt of EUR 460.9 million. Other reserves from proﬁt rose by

EUR 60.2 million due to the allocation of net proﬁt for the year.

The Group’s net proﬁt brought forward

amounted to EUR 225.9 million (index 96). It grew by

EUR 75.4 million due to the transfer of net proﬁt for the preceding year and fell by EUR 84.0 million

due to the dividend payment.

Net proﬁt for the year

disclosed in the balance sheet amounted to

EUR 53.6 million and, due to the allocation of part of the net proﬁt to other reserves from proﬁt,

was EUR 60.2 million lower than net proﬁt disclosed in the income statement.

Subordinated liabilities

equalled EUR 49.5 million and were at a level approximately equal to the 2021

year-end (index 100).

Gross insurance technical provisions

totalled EUR 3,100.0 million, down by 3%. They represented

75.1% of total balance sheet liabilities, up by 2.0 percentage points relative to the preceding year.

Mathematical provisions and insurance technical provisions for unit-linked life insurance contracts

in the amount of EUR 1,937.8 million declined by 6%; other insurance technical provisions (index

75) and claims provisions (index 99) also fell. In contrast, provisions for gross unearned premium

increased (index 112). The Group’s insurance technical provisions are discussed in greater detail in

Section

7.8 Risk equalisation

Operating liabilities

rose by 48% over the 2021 year-end and amounted to EUR 93.8 million, thus

representing 2.3% of balance sheet total. Their growth was primarily inﬂuenced by a 47% increase in

liabilities from reinsurance and coinsurance operations (EUR 60.8 million), mainly due to high growth

of liabilities for reinsurance premium. High growth was also recorded by current tax liabilities, which

increased to EUR 11.5 million due to higher proﬁt before tax (index 432).

Financial position of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Lease liabilities

totalled EUR 10.8 million (index 95) as at the reporting date and comprise long-term

lease liabilities of EUR 9.5 million (index 95) and short-term lease liabilities of EUR 1.2 million (index 99).

Other liabilities

rose by 17% to EUR 100.2 million, mainly due to higher short-term liabilities for

advances received, higher provisions for accrued costs of insurance acquisition fees and commissions

and an increase in liabilities to employees at the parent company. The increase was also inﬂuenced by

higher accrued equalisation scheme expenses for supplemental health insurance.

Employee beneﬁts

of EUR 17.4 million declined by 1% and

other provisions

by 15% to EUR 2.1 million.

Due to declines in the value of ﬁnancial assets and the resulting negative fair value reserve, deferred tax

assets of EUR 41.0 million were recognised at the 2022 year-end, while due to positive fair value reserve

at the 2021 year-end,

deferred tax liabilities

in the amount of EUR 9.4 million were disclosed.

Other ﬁnancial liabilities

amounted to EUR 1.9 million, down by 39%, mainly due to the write-off of

expired liabilities for unpaid dividends.

9.2 Assets

Financial investments

, representing 62.8% of total assets, amounted to EUR 2,593.1 million, down

by 12% relative to the 2021 year-end. The decrease in their value was primarily a result of the rise in

interest rates on the ﬁnancial markets and the fall in value on the stock markets. The bulk of ﬁnancial

assets was accounted for by available-for-sale ﬁnancial assets, which totalled EUR 1,810.8 million (index

85). Furthermore, held-to-maturity ﬁnancial investments amounted to EUR 456.5 million (index 290),

ﬁnancial investments measured at fair value through proﬁt or loss amounted to EUR 199.3 million

(index 37) and deposits and loans to EUR 126.5 million (index 129). In order to manage higher

interest rates and reduce ﬂuctuations in the value of SVPI guaranteed pension funds, the share

of bond investments valued at amortized cost using the effective interest method and classiﬁed

as held-to-maturity ﬁnancial investments was increased.

Unit-linked insurance assets

amounted

to EUR 571.9 million, down by 8%. See Section

7.9 Investment structure of the Triglav Group and

Zavarovalnica Triglav

for more information on the structure of ﬁnancial investments.

The Group’s ﬁnancial investments in associates

of EUR 37.8 million were 5% higher compared to

31 December 2021.

Zavarovalnica Triglav’s ﬁnancial investments in subsidiaries and associates

rose

by 31% and totalled EUR 227.3 million. Their increase is the result of the capital increase of Triglav,

pokojninska družba, Triglav INT and Triglav penzisko društvo, Skopje (see Section

2.7.4 Composition of

the Triglav Group

for more information).

Investment property

in the amount of EUR 68.4 million decreased by 9% due to the sale of

investment property.

Receivables

, representing 6.5% of total balance sheet assets, grew by 27% compared to the preceding

year and amounted to EUR 269.1 million, of which receivables from direct insurance operations of

EUR 145.7 million (index 125) accounted for the bulk. Receivables from reinsurance and coinsurance

operations reached EUR 81.3 million (index 121), other receivables stood at EUR 35.5 million (index

147) and current tax receivables at EUR 6.7 million (index 162). Due to the negative value of fair value

reserve,

deferred tax assets

increased to EUR 40.3 million (compared to EUR 927 thousand as at

31 December 2021).

Insurance technical provisions transferred to reinsurance contracts

grew by 20% and amounted to

EUR 209.8 million. Assets from reinsurance contracts from claims provisions were 23% higher and

totalled EUR 147.2 million, assets from unearned premium grew by 9% to EUR 57.7 million and assets

from mathematical provisions rose by 56% to EUR 8.8 million.

Intangible assets

totalled EUR 112.5 million, up by 5% due to increased long-term deferred acquisition

costs.

Property, plant and equipment

amounted to EUR 108.0 million, down by 1% relative to the 2021

year-end.

Right-of-use assets

amounted to EUR 10.4 million, down by 5% relative to 31 December 2021. They

comprise the right to use land and buildings of EUR 8.3 million (index 96), the right to use vehicles of

EUR 2.1 million (index 92) and the right to use other assets of EUR 37 thousand (index 43).

Non-current assets held for sale

of EUR 2.2 million declined by 43% due to the sale of real property.

Cash and cash equivalents

totalled EUR 98.5 million (index 120) and

other assets

equalled

EUR 6.3 million (index 130).

Financial position ratios of the Triglav Group

Financial position ratios

2022

2021

2020

Equity to total liabilities ratio

18.2%

21.3%

21.0%

Average equity balance as % of gross written premium

57.0%

66.6%

67.4%

Return on equity

13.1%

12.5%

8.9%

Gross insurance technical provisions to total liabilities ratio

75.1%

73.1%

73.3%

Average balance of gross insurance technical provisions as % of

gross written premium

212.9%

230.3%

239.6%

Financial assets to total assets ratio

76.7%

81.3%

81.9%

Financial assets to gross insurance technical provisions

102.1%

111.2%

111.7%

Financial position of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Balance sheet of the Triglav Group

31 December 2022

31 December 2021

Index

Share 2022

Share 2021

ASSETS

4,128,824,920

4,374,353,616

100.0%

Intangible assets

112,459,749

107,184,415

105

2.7%

2.5%

Property, plant and equipment

107,998,468

108,655,212

2.6%

2.5%

Non-current assets held for sale

2,182,419

3,812,044

0.1%

Deferred tax assets

40,971,447

927,425

4,418

1.0%

0.0%

Investment property

68,377,495

75,110,973

1.7%

Right-of-use assets

10,367,625

10,933,109

0.3%

0.2%

Investments in associates

37,810,184

36,031,346

105

0.9%

0.8%

Financial investments

2,593,109,846

2,937,700,150

62.8%

67.2%

loans and deposits

126,526,363

98,104,537

129

3.1%

2.2%

held to maturity

456,469,434

157,560,733

290

11.1%

3.6%

available for sale

1,810,796,092

2,137,609,082

43.9%

48.9%

recognised at fair value through proﬁt or loss

199,317,957

544,425,798

4.8%

12.4%

Unit-linked insurance assets

571,866,521

619,617,488

13.9%

14.2%

Reinsurers' share of technical provisions

209,799,017

174,839,890

120

5.1%

4.0%

Receivables

269,140,646

212,376,909

127

6.5%

4.9%

receivables from direct insurance operations

145,702,112

116,855,207

125

3.5%

2.7%

receivables from reinsurance and coinsurance operations

81,261,176

67,200,932

121

2.0%

1.5%

current tax receivables

6,704,693

4,127,384

162

0.2%

0.1%

other receivables

35,472,665

24,193,386

147

0.9%

0.6%

Other assets

6,280,050

4,843,025

130

0.2%

0.1%

Cash and cash equivalents

98,461,452

82,321,630

120

2.4%

1.9%

EQUITY AND LIABILITIES

4,128,824,920

4,374,353,616

100.0%

Equity

752,798,862

932,986,869

18.2%

21.3%

Controlling interests

749,398,340

930,511,224

18.2%

21.3%

share capital

73,701,392

100

1.8%

1.7%

share premium

50,304,674

50,283,747

100

1.2%

1.1%

reserves from proﬁt

481,833,959

421,633,959

114

11.7%

9.6%

treasury share reserves

364,680

100

0.0%

treasury shares

-364,680

100

0.0%

fair value reserve

-129,532,451

77,834,278

-3.1%

1.8%

net proﬁt brought forward

225,893,107

234,588,994

5.5%

5.4%

net proﬁt for the year

50,259,978

75,439,847

1.3%

1.7%

currency translation differences

-3,062,318

-2,970,993

103

-0.1%

Non-controlling interests

3,400,522

2,475,645

137

0.1%

Subordinated liabilities

49,522,163

49,471,831

100

1.2%

1.1%

Insurance technical provisions

2,519,079,596

2,576,368,384

61.0%

58.9%

unearned premiums

414,289,158

370,043,725

112

10.0%

8.5%

mathematical provisions

1,356,890,816

1,432,613,660

32.9%

32.8%

claims provisions

68,788,186

694,498,311

16.7%

15.9%

other insurance technical provisions

59,111,436

79,212,688

1.4%

1.8%

Insurance technical provisions for unit-linked insurance contracts

580,944,539

622,303,399

14.1%

14.2%

Provisions for employee beneﬁts

17,429,108

17,672,133

0.4%

Other provisions

2,146,887

2,512,536

0.1%

Deferred tax liabilities

259,455

9,377,034

0.0%

0.2%

Other ﬁnancial liabilities

1,873,559

3,085,647

0.0%

0.1%

Operating liabilities

93,775,550

63,341,658

148

2.3%

1.4%

liabilities from direct insurance operations

21,501,649

19,450,557

111

0.5%

0.4%

liabilities from reinsurance and coinsurance operations

60,816,415

41,241,465

147

1.5%

0.9%

current tax liabilities

11,457,486

2,649,636

432

0.3%

0.1%

Lease liabilities

10,767,382

11,274,806

0.3%

Other liabilities

100,227,818

85,959,319

117

2.4%

2.0%

Financial position of the Triglav Group and Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Balance sheet of Zavarovalnica Triglav

31 December 2022

31 December 2021

Index

Share 2022

Share 2021

ASSETS

2,920,466,482

3,118,944,094

100.0%

Intangible assets

70,414,326

67,022,027

105

2.4%

2.1%

Property, plant and equipment

67,285,004

65,143,307

103

2.3%

2.1%

Deferred tax assets

34,667,180

1.2%

0.0%

Investment property

43,377,173

43,840,055

1.5%

1.4%

Right-of-use assets

3,940,725

4,548,298

0.1%

Investments in subsidiaries

185,360,343

131,924,683

141

6.3%

4.2%

Investments in associates

41,951,871

41,693,997

101

1.4%

1.3%

Financial investments

1,625,187,871

1,968,679,979

55.6%

63.1%

loans and deposits

31,856,441

32,521,523

1.1%

1.0%

held to maturity

227,656,974

140,946,233

162

7.8%

4.5%

available for sale

1,278,747,957

1,588,390,263

43.8%

50.9%

recognised at fair value through proﬁt and loss

86,926,499

206,821,960

3.0%

6.6%

Unit-linked insurance assets

490,618,848

539,417,972

16.8%

17.3%

Reinsurers' share of technical provisions

180,142,940

136,077,958

132

6.2%

4.4%

Receivables

152,064,970

105,169,567

145

5.2%

3.4%

receivables from direct insurance operations

98,739,720

73,516,574

134

3.4%

2.4%

receivables from reinsurance and coinsurance operations

37,156,172

23,522,340

158

1.3%

0.8%

current tax receivables

564,166

0.0%

other receivables

16,169,078

7,566,487

214

0.6%

0.2%

Other assets

2,389,990

1,513,260

158

0.1%

0.0%

Cash and cash equivalents

23,065,241

13,912,991

166

0.8%

0.4%

EQUITY AND LIABILITIES

2,920,466,482

3,118,944,094

100.0%

Equity

552,089,340

675,221,933

18.9%

21.6%

share capital

73,701,392

100

2.5%

2.4%

share premium

53,412,884

100

1.8%

1.7%

reserves from proﬁt

464,762,643

404,562,643

115

15.9%

13.0%

fair value reserve

-103,556,856

55,884,634

-3.5%

1.8%

net proﬁt/loss brought forward

3,497,205

50,944,831

0.1%

1.6%

net proﬁt/loss for the year

60,272,072

36,715,549

164

2.1%

1.2%

Subordinated liabilities

49,522,163

49,471,831

100

1.7%

1.6%

Insurance technical provisions

1,677,748,467

1,740,373,185

57.4%

55.8%

unearned premiums

276,301,501

246,017,849

112

9.5%

7.9%

mathematical provisions

944,548,259

1,008,319,155

32.3%

claims provisions

426,901,198

446,567,255

14.6%

14.3%

other insurance technical provisions

29,997,509

39,468,926

1.0%

1.3%

Insurance technical provisions for unit-linked insurance contracts

495,682,803

540,135,052

17.0%

17.3%

Provisions for employee beneﬁts

12,381,473

12,842,304

0.4%

Other provisions

154,638

358,980

0.0%

Deferred tax liabilities

4,212,732

0.0%

0.1%

Other ﬁnancial liabilities

22,640

1,690,586

0.0%

0.1%

Operating liabilities

67,460,551

34,861,554

194

2.3%

1.1%

liabilities from direct insurance operations

11,547,677

10,182,945

113

0.4%

0.3%

liabilities form reinsurance and coinsurance operations

46,215,403

24,678,609

187

1.6%

0.8%

current tax liabilities

9,697,471

0.3%

0.0%

Lease liabilities

4,054,668

4,643,844

0.1%

Other liabilities

61,349,739

55,132,093

111

2.1%

1.8%

Cash ﬂow statement

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

10.

Cash ﬂow statement



The Triglav Group and

Zavarovalnica Triglav generated

a positive cash ﬂow from

operating and investing activities

and a negative cash ﬂow from

ﬁnancing activities.



The closing balance of cash and

cash equivalents of the Group was

EUR 98.5 million, up by 20%.

A positive

cash ﬂow from operating activities of the Group

declined by 38% to EUR 84.9 million, primarily as a result of the

higher volume of claims paid and increased operating expenses.

For the same reasons, a positive

cash ﬂow from operating

activities of Zavarovalnica Triglav

fell by 31% to EUR 37.3 million.

Cash ﬂow from investing activities of the Group

was positive

and reached EUR 20.5 million (compared to EUR –93.9 million

last year), while

cash ﬂow from investing activities of the

parent company

was EUR 59.4 million (compared to EUR

–20.3 million last year). The cash ﬂow from investing activities

of both the Group and the parent company was positive due

to lower cash ﬂow from operating activities and higher cash

outﬂows for ﬁnancing activities, which was ﬁnanced with net

disposal of investments.

Cash ﬂow from ﬁnancing activities of the Group

was negative

and stood at EUR –89.3 million. There were no cash inﬂows

from ﬁnancing activities in 2022, whereas cash outﬂows grew

by 107% as a result of the higher dividend payment in 2022.

In addition to the dividend payment, cash outﬂows for

ﬁnancing activities include cash outﬂows for interest on issued

bonds and other interest.

Cash ﬂow from ﬁnancing activities

of Zavarovalnica Triglav

was also negative due to the dividend

payment and amounted to EUR –87.6 million (index 208).

The closing balance of cash and cash equivalents of the Group

totalled EUR 98.5 million, up by 20% over the previous year, and

that of

the parent company

increased by 66% to EUR 23.1 million.

Summary cash ﬂow statement of the Triglav Group

2022

2021

Index

2022/2021

Operating cash ﬂow

Income statement items

131,696,364

144,641,397

Changes in net current assets–operating balance sheet items

-46,777,647

-7,290,132

642

Net cash from/ (used in) operating activities

84,918,717

137,351,265

Cash ﬂows from investing activities

Cash inﬂows from investing activities

1,060,019,361

1,093,015,888

Cash outﬂows from investing activities

-1,039,487,097

-1,186,871,319

Net cash from/ (used in) investing activities

20,532,264

-93,855,431

Cash ﬂows from ﬁnancing activities

Cash inﬂows from ﬁnancing activities

Cash outﬂows from ﬁnancing activities

-89,334,516

-43,097,819

207

Net cash from/ (used in) ﬁnancing activities

-89,334,516

-43,097,819

207

Closing balance of cash and cash equivalents

98,461,452

82,321,630

120

E1.

Net cash ﬂow for the period

16,116,465

404,882

3,981

E2.

Currency differences

23,357

17,084

137

Opening balance of cash and cash equivalents

82,321,630

81,899,664

101

Summary cash ﬂow statement of Zavarovalnica Triglav

2022

2021

Index

2022/2021

Operating cash ﬂow

Income statement items

59,519,111

57,377,294

104

Changes in net current assets–operating balance sheet items

-22,261,880

-3,345,436

665

Net cash from/ (used in) operating activities

37,257,231

54,031,858

Cash ﬂows from investing activities

Cash inﬂows from investing activities

866,067,369

945,312,942

Cash outﬂows from investing activities

-806,619,546

-965,578,127

Net cash from/ (used in) investing activities

59,447,823

-20,265,185

Cash ﬂows from ﬁnancing activities

Cash inﬂows from ﬁnancing activities

Cash outﬂows from ﬁnancing activities

-87,552,803

-42,157,904

208

Net cash from/ (used in) ﬁnancing activities

-87,552,803

-42,157,904

208

Closing balance of cash and cash equivalents

23,065,242

13,912,991

166

Net cash ﬂow for the period

9,152,251

-8,391,231

Opening balance of cash and cash equivalents

13,912,991

22,304,222

Development activities

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Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

11.

Development activities



The number of client interaction points and the range of assistance service

providers increased in all markets. Cooperation with partners was upgraded,

and they were included in the Company’s platform solutions.



Business ecosystems were upgraded with new services and harmonised with

the revised

Triglav komplet

loyalty programme.



Assistance, sales and claims procedures, as well as communication processes,

continued to be digitalised and automated in order to fully meet client needs

the moment they arise.



Among the numerous innovations implemented, digital sales and marketing

stand out; the digital platform for easy-to-use electronic client service was

upgraded in accordance with the latest guidelines and the TRIA virtual assistant

was launched.



Product development and pricing policies were adapted to personalised

solutions and macroeconomic trends.



The Company entered into partnerships in third countries, and international

brokerage companies are increasingly recognising the quality and ﬂexibility of

the Company’s services.



The Company’s internal organisation was redesigned to facilitate the

achievement of its strategic objectives and ambitions.



A pilot project for setting up a hybrid workspace was launched.



The IT infrastructure continued to be centralised with the aim of

including 11 Group companies in the Group’s hybrid cloud by 2025.

Client at

the forefront

Client-centric

approach

Comprehensive

client experience

At the forefront of the Group’s development activities, which are carried out by respective divisions and

departments at the parent company, was the implementation of strategic guidelines with a particular

emphasis on achieving an outstanding client experience, digital transformation and the development

of service-oriented business ecosystems. The goals set were fully achieved. Furthermore, sustainability

aspects and regulatory changes were incorporated into the development of products and services. See

Section

12. Sustainable development at the Triglav Group

for further information.

11.1 A client-centric approach

Our increasing focus on clients is reﬂected in the expansion of the range of client interaction points

and the development of business ecosystems, thereby strengthening the Company’s market presence

and creating new sales opportunities. All of this increases the ﬂexibility of the Group’s business model,

changing the value provided by the two core activities by designing comprehensive solutions to meet

client needs, in addition to ensuring clients’ ﬁnancial security.

Development activities

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Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

11.1.1 Business ecosystems

The main building blocks of all our ecosystems

are assistance services expanded by related

services, based on high-quality partnerships and

supported by advanced information and

digital solutions.

Ecosystems are built in the ﬁelds of health,

well-being, mobility, living and ﬁnancial services,

integrating them with the revised

Triglav komplet

loyalty programme, as seen below.

In caring for people’s health, new healthcare

partners are added to the well-developed

Zdravje

(Health) business ecosystem, while

upgrading existing partnerships and expanding

the range of assistance and healthcare services.

An outstanding user experience is also ensured

by constantly improving processes in key client

channels and implementing the most

advanced technologies.

In a similar way, the Company enhances and

upgrades partnerships with providers of home,

car, computer, micromobility and pet assistance.

At the home ecosystem, focus is on the solutions

that provide the client with comprehensive

repair of damage: from providing assistance

immediately after the damage has occurred

to repairing the damage using the “report and

repair” method. In order to make it easier and

faster to repair damage to clients’ homes, various

service providers were contracted. As part of the

business ecosystem for the health and well-being

of pets, their owners are joined into a community

with easy access to information and

service providers.

Triglav Health

Assistance to clients with acute and chronic

illnesses, health prevention and provision of care.

Triglav Financial Security

A central point for planning and creating an

individual's financial security in all periods of

life - from savings to pension, access to advisors

(financial, tax) or the use of various

financial instruments.

Triglav Home

An ecosystem of assistance services in the

elimination of damage, access to the services

of verified contractors and solutions and

systems for remote assistance, control

and home security.

Triglav Pets

For the well-being of pets, help with their acute

illnesses and traumas, and insuring the owners'

personal liability when caused by their pet.

Triglav Mobility

Ensuring various forms of safe and

sustainable mobility.

The Triglav Group single platform

Customer data management, ensuring security,

personalization of the offer, loyalty program, evaluation

of providers, gamification, shared digital technologies

(e.g. image and speech recognition, AI/ML, bots,

geolocation services, AR).

Triglav Group’s business ecosystems

Development activities

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Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The Home ecosystem

A complex business model

A focused and

integrated range

of services to meet

clients' needs and

expectations.

A one-stop shop.

Predictability.

Prevention.

Data-driven

services.

Management

services.

Resolving clients'

problems with a

comprehensive

range of services

instead of financial

compensation.

A range of

assistance services

to resolve clients'

problems,

increased

product value.

A wide-ranging

portfolio. Claim

payment upon

the occurrence of

a loss event.

Insurance

Assistance

services

Ecosystem

11.1.2 Development of sales

processes and channels

The single platform for client communication

and service continues to be developed. It is

intended to ensure the coordinated, integrated

and transparent dealing with clients and is based

on the Hermes model and Microsoft Dynamics

365 technology. It includes automated processes

and a single solution for an omni-channel user

experience. To ensure such experiences, data

and content about products and services will be

integrated into the platform, enabling it to become

the main digital transformation accelerator. In

accordance with the plans, the management of

claims that are submitted to the single entry point

through several channels was optimised.

In support of sales, the process of managing

life insurance contractors was automated

(the entire process up to the drawing up and

signing of the contract and notiﬁcation of the

partner). In addition, a mobile application for

non-life insurance partners is being developed,

incorporating new back-ofﬁce automated

marketing modules into the platform. The

application for automatically sending claims will

simplify the procedures from the acceptance of

claims to the payment of claims. By the end of

2023, claim reporting for 20 insurance classes will

be automated.

To ensure standardised recording and

a comprehensive overview of data, as well as

simpliﬁed change management, the registers

of the databases of non-life and life insurance

business partners were merged. Underwriting

applications were adapted to the revised

Triglav komplet

loyalty programme, enabling the

automatic renewal of home insurance.

In Slovenia, the single digital platform was

upgraded to support the sales processes of non-

life, life and health insurance products. The range

of insurance products and services offered in banks

was expanded to include the option of taking out

insurance remotely and e-signing, as well as the

storage and delivery of e-documentation, which

was linked to the call centre.

In Croatia, the life insurance sales portal was

integrated into the new single platform for non-

life, life and health insurance.

Development and new forms of

partnerships

The Triglav Group is consolidating its position

on the primary markets in the Adria region

and strengthening its position in the wider

international environment through partnerships

with foreign insurance brokerage and agency

companies as well as with reinsurers.

Through various forms of partnerships in

Slovenia

and a large network of contact points,

clients can take out insurance at the very

moment they need it, making this experience

as convenient as possible for them. Partnerships

are being strengthened mainly with vendors

and service companies providing banking

and other ﬁnancial services, while the level of

cooperation with partners providing assistance

services is also being increased. In 2022, a greater

level of cooperation was seen with regard to

the settlement of motor vehicle and non-life

insurance claims, as well as in roadside, home

and cyber assistance at the insurance companies

outside Slovenia

To ensure comprehensive vendor management,

the Company established the Quality and

Contractor Relations Department. Cooperation

was enhanced with the a specialised retail

chain, a telecommunications operator and other

vendors selling electronic devices, as well as

business cooperation with a savings bank, which

sells Triglav life insurance products.

In Montenegro

, most new partnerships were

entered into with banks (accounts receivable

insurance) and with a mobile operator (mobile

phone insurance). In addition, cooperation

with MontenegrinTelekom was expanded in

the high-net-worth client segment. Software

support for own sales network and obtaining

consent for direct marketing were improved.

Furthermore, an online calculator was launched,

and partnerships with four banks selling life

insurance products were renewed.

Development activities

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

For the sales network

in Serbia

, a portal to simplify taking out home insurance and automatically

renewing home and comprehensive insurance was designed, an application for selling life insurance

was launched and the underwriting process was automated.

In Croatia

, sales folders were introduced to simplify selling products via the sales network,

authorisations for faster issuance of insurance policies were revised and e-classrooms for sales channel

training were updated. Vehicle inspection providers were given access to the B2B portal, where motor

vehicle insurance can be taken out. The introduction of the interface has simpliﬁed the use of Croatian

insurance comparison sites. Moreover, a life and health insurance sales portal was launched.

In North Macedonia

, cooperation with reputable partners was enhanced: another partner bank

obtained authorisation to sell insurance, new partnerships with banks were established for selling

consumer loan insurance and home insurance products, and an agreement was made with the leading

mobile operator for telecommunications equipment insurance and home insurance via the B2B

platform. In cooperation with healthcare institutions, free PCR tests were provided to policyholders.

In the Federation of

Bosnia and Herzegovina

, cooperation with travel agencies was expanded.

In Republika Srpska, the sales network development strategy was revised to include the goal of

expanding the sales network to new regions, new regulations on the work of the sales network and its

remuneration were adopted, and both the number of points of sale of own and external sales networks

and their employees were increased.

In the markets where the Group is not directly present

, focus was on the strategy of expanding the

core business. The Group’s business presence was enhanced especially in most EU Member States and

the EEA,

while establishing new business partnerships with partners from third countries. The Group’s

business operations are developed and expanded through agency cooperation with local partners and

international brokerage companies, which increasingly recognise the high quality and ﬂexibility of the

Group’s services. Reinsurance products for international business clients were added to the insurance

offer for agency partners abroad, globalising the Group’s operations and underwriting.

11.1.3 Development of insurance products and services

Focused on client needs and setting the standard for an outstanding user experience, the Company

aimed for responsiveness, simplicity and reliability of its services, products and processes. The transfer

of products and good practices within the Group continued, achieving synergistic effects backed by

a uniﬁed market presence.



Property and interest in property insurance:

In order to mitigate inﬂationary pressures and balance

the claims ratio of some insurance subclasses, premium rates, coverage limits and sums insured for

all property insurance products were adjusted. Fixed deductibles were increased and the discount

on insurance premium was adjusted. Sums insured were revalued based on the latest data on

inﬂation rates and the construction index. The agreed value insurance terms and conditions were

replaced with new

special insurance terms and conditions for investments of companies in buildings

and equipment

, thereby removing automatic immunity from underinsurance.

Insurance bases for

general liability insurance were fully revised. The COVID-19 insurance coverage in the context of

insurance for travel abroad was extended, and for auto-renewal insurance policies the sum insured

under liability insurance was increased to EUR 100,000.



Motor vehicle insurance:

Insurance bases, premiums and tariff rates of motor vehicle insurance were

adjusted to inﬂationary pressures and other needs.

Mini

roadside assistance insurance and roadside

assistance insurance for goods vehicles with a maximum permissible weight over 3.5 tonnes was

launched. Claims experience monitoring within the

Triglav komplet

system was designed, and the

basis for awarding the

Triglav komplet Bonus

(TKB) was implemented. Insurance solutions continued

to be developed for leasing service providers and vehicle importers (e.g. a multi-year policy for

leasing-ﬁnanced vehicles).



Agricultural insurance:

Insurance products were harmonised with the Decree on co-ﬁnancing of

insurance premiums for primary agricultural production and ﬁsheries for 2022. With regard to fruit

tree insurance against the risk of spring frost, risk assumption activities were increased and the

scope of insurance guarantee for outdoor orchards was reduced. Sums insured, premiums, tariff

rates, the amount of insurance guarantee and pet insurance premiums were adjusted to inﬂationary

pressures. The development and adaptation of insurance solutions continued in the context of

building the

Triglav Male Živali

(Pets) ecosystem.



Financial credit insurance:

Focus was on launching new and upgraded insurance products. With

respect to credit insurance, the range of products for an individual assessment of whether to

insure a credit was harmonised with regulatory amendments and modiﬁed criteria for determining

creditworthiness. With regard to trade receivables insurance, advance payment insurance and

factoring receivables insurance were adjusted to new market needs. A solution was developed for

the approval of guarantees without expiry and for transactions involving long-term contracts (the

energy sector).



Transport insurance:

The portfolio analysis resulted in changes to road carrier’s liability insurance for

road carriers transporting new and used road vehicles (increased surcharge and deductible, clearly

speciﬁed guarantee for sub-carriers as a secondary guarantee). In terms of legal protection for goods

vehicles, the premium for the part that covers the protection of the transport contract was reduced,

thereby increasing the availability of the product to carriers having a large ﬂeet.



Life and accident insurance:

In addition to upgrading

Fleks

unit-linked life insurance products,

providing new investment options to clients and expanding the range of ETF funds, single premium

unit-linked life insurance for bank clients and certain accident insurance products were upgraded.

The redesign of the complementary accident insurance for children has made it possible for clients

to opt for a higher sum insured and new risks (annuity, fractures, dislocations, burns and other

injuries), as well as package or individual coverages and an additional beneﬁt for families with three

or more children. With the new coverages, the existing package offer of group accident insurance

and accident insurance for the elderly was expanded and new coverages were added.



Health insurance:

The range of modular health insurance products for businesses was expanded

to include

Diagnoza rak Kolektivno

(Group Cancer Diagnosis) and

Psihološka pomoč Kolektivno

(Group Psychological Support), while the range of specialist outpatient treatment products was

upgraded with additional elements and coverages (e.g. the option of remotely determining the

Pilot project: hybrid workplace

Zavarovalnica Triglav launched a

hybrid workplace

pilot project, in which around 14% of employees participate. In the context of

the project, the employer’s premises are primarily intended for collaboration, networking and creative processes, while employees

perform mental and routine tasks to a greater extent in a quiet environment in a remote (home) ofﬁce. The premises are designed

as a hybrid working environment with a ﬂex space that includes integrated creative points for collaboration or individual work,

designated areas for socialising, virtual areas for collaboration (video calls), quiet rooms for conversations, etc. Unassigned

workspaces are also planned, which should gradually reduce the need for ﬁxed workstations.

Development activities

Business Report

Risk Management

Accounting Report

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

existence of a medically justiﬁed indication for referral to specialist

treatment via family physicians who have a contract with the insurance

company). The range of specialist areas, tests and procedures was

expanded.

To better meet client needs, many processes were upgraded (for example,

additional providers were included in the system for direct ordering

of healthcare services and the range of services that can be ordered

electronically at any time was expanded) and the assistance application

was regularly updated to optimise the operation of the assistance centre.

Due to the growing need to expand the range of assistance products for

various groups of policyholders and the related provision of services, the

Triglav zdravje asistenca company was founded.



Pensions:

The age classes of

Skupni pokojninski sklad

(Joint Pension

Fund) guarantee funds were uniﬁed at Group level (

Skupni pokojninski

sklad

(Joint Pension fund),

Skupina kritnih skladov Triglav PDPZ

(Triglav

SVPI Guarantee Fund Group),

Skupina kritnih skladov Triglav pokojnine+

(Triglav Pensions+ Guarantee Fund Group)). This simpliﬁcation, which will

be implemented in early 2023, will also contribute to the reduction of the

share of assets with a guaranteed return.

11.2 Transformation and digitalisation

Digitalisation and digital transformation are the key building blocks of the

Group’s new strategy period, aimed at providing clients with an outstanding

user experience. The transformation is based on the uniﬁed management of

client experience and digital business, which utilises self-service, digital sales

and process automation. The latter also simpliﬁes internal processes. Thus,

several internal business processes were automated and digitalised using

tools for robotic process automation (RPA).

In 2022, the network and server infrastructure was upgraded to ensure the

stable, efﬁcient and secure operation of information systems and services.

As part of IT infrastructure centralisation, this project was completed at

Triglav Osiguranje, Banja Luka. The goal is to include 11 companies in

the Group’ hybrid cloud by 2025, increasing the utilisation of equipment,

obtaining additional security mechanisms and reducing maintenance costs.

In developing the IT infrastructure, cloud services are used in all areas where

this is reasonable and on-premise data centres are migrated to the hybrid

cloud. A data centre was set up in the MS Azure cloud, enabling subsidiaries

to migrate applications to the cloud.

By implementing the new AdInsure 3 core information system as

a strategic project, a single platform for non-life, life and health

insurance is being built. Within its framework, the AdInsure

3 sales portal for selling life insurance products was launched at

the Croatian insurance company.

Core and support systems were upgraded to incorporate the new

IFRS 17 accounting standard, while a uniform human resource

system and intranet were implemented in companies in Slovenia

and most insurance companies outside Slovenia. By merging

data from the Company’s biggest registers, work was simpliﬁed

and client experience was improved. Upon setting up the single

business partners register, business partners’ data from non-life

and life insurance registers were collected in one place.

Due to the adverse economic situation, greater focus was on

the recovery of insurance premium and the recovery of claims

for unpaid rent.

Development activities

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Risk Management

Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The situation during the COVID-19 pandemic changed the way employees work, therefore, where the

nature of work allows it,

working from home was made possible

. In addition, efforts are being made to

digitalise human resource employment procedures to the greatest extent possible in order to enable job

candidates to apply digitally and conduct the ﬁrst round of interviews online.

The Company’s organisational structure is adapted to facilitate the realisation of its strategic guidelines

and ambitions.



The Council of Architects (to ensure the consistency of proposals for IT solutions with the target

information system architecture) and



the Council of Security Experts (to ensure systematic treatment of cyber risks) were established.



By revising digital business segments and the operation of the digital platform, two organisational

units were established:



the Digital Platform and Business Intelligence Division (the implementation and promotion of

digital business, seeking new ways of doing business and deﬁning requirements) and



the Digital Operations and Client Experience Division (the development of new technological

solutions, the paths leading to them and the technological aspect of data preparation and

analysis for making business decisions).



The Cyber Resilience Department (safe operation of information systems and data security, ensuring

conﬁdentiality, integrity and availability of information) was established.



A more extensive overhaul of the non-life insurance claim segment was also aimed at digitalisation,

automation and simpliﬁcation of processes.

In Croatia, many activities were focused on the introduction of the euro as of 1 January 2023.

The transformation of digital solutions and services continued, especially the upgrade of the

digital platform for easy-to-use electronic client service. Key acquisitions are in line with the latest

digitalisation trends:



the new i.triglav mobile application (a one-stop shop for clients, where they can arrange most

matters related to insurance contracts and receive other services);



inclusion of clients in the i.triglav digital ofﬁce, also via the SI-PASS and Rekono identity veriﬁcation

services and a multi-level access for clients (services depending on the client identiﬁcation method);



management of several vehicles and measurement of driving with motorcycles in the

DRAJV application;



redesigned websites of eight insurance companies outside Slovenia as well as Triglav Skladi and

Triglav Svetovanje (uniform user experience across all websites and applications of the Group

insurance companies and personalised content for registered users);



the TRIA virtual assistant (user help and answers to questions about the Company’s products and

services, personalised services or information for registered users);



advanced analytics and artiﬁcial intelligence were integrated into client service processes

(faster decision-making when selling services);



prepared and consolidated data in the Synaps system (improved reporting quality).

11.3 Development activities related to

asset management

A more advanced and simpler experience was ensured to both the internal and external users of

Triglav

Skladi

’s services, thereby strengthening the company’s competitive position. Priority was given to the

company’s sustainability (ESG) strategy, which was ﬁrst implemented in the context of discretionary

mandates, and to the adaptation of data sources for the pursuit of sustainable investment policies. In

addition, the Sustainable Business Policy was adopted and the Key Indicators of Sustainable Business

were deﬁned.

By incorporating the company’s offer of savings plans into

the Triglav Group’s komplet single loyalty

programme

, clients can receive additional beneﬁts when taking out non-life insurance. The company’s

website was redesigned, adapting it to digital marketing.

All ﬁve investment policies were updated, which are also the basis for

Aktivni naložbeni paketi

(Active

Investment Packages), designed for the clients to actively manage and individually adjust their

investment strategy in the context of unit-linked life insurance. The company’s IT system was integrated

into Zavarovalnica Triglav’s environment. The server infrastructure was centralised, business processes

were digitalised, the data warehouse was upgraded and reporting dashboards for making business

decisions were established. The sales funnel in the automated marketing tool was synchronised with

the MS Dynamics CRM platform, improving the monitoring and treatment of sales leads and clients at

all interaction points, to which the automated communication was also adapted.

The implementation of the new SimCorp Dimension platform for fund management and discretionary

mandates, as well as the effective digital implementation of business processes will be completed in

2023.

The subsidiary

Triglav Fondovi, Sarajevo

upgraded its range of products and services in 2022. With two

new mutual funds, it has effectively positioned itself in the segment of investing investor assets in

open-end investment funds.

Triglav, pokojninska družba

, a new version of the IN2 Delta investment information system was

implemented (in addition to easier monitoring of portfolios, it enables the preparation of materials and

ongoing simulations to ensure guaranteed proﬁtability) and comprehensive management of a group of

new Triglav pokojnine+ lifecycle guarantee funds was established.

The platform for investing in alternative investments

continued to be developed by Triglav, further

expanding its range of alternative investment classes. In order to increase the return on portfolios, the

exposure of alternative investment classes in relation to the risks assumed was slightly increased, while

maintaining high portfolio liquidity.

Non-ﬁnancial statement

Business Report

Risk Management

Accounting Report

101

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Non-ﬁnancial statement

Sustainability (ESG) aspects of business are integrated in the Triglav Group’s very mission and strategic

guidelines. They are continuously incorporated in business processes, thereby upgrading them, while

at the same time promoting the transition to a sustainable society. The Group joined the efforts and

commitments for sustainable business and mitigating climate change and adopted the Triglav Group’s

strategic ambitions in sustainable development (ESG).

For reporting on environmental, social and management aspects, the Group uses Global Reporting

Initiative (GRI) standards and their speciﬁc guidelines for the ﬁnancial sector, Sustainability

Accounting Standards Board (SASB) standards and an overview of the Group’s progress in

contributing to the achievement of the United Nations Sustainable Development Goals (SDGs).

The integrated Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2022 is thus in

line with the requirements of the Companies Act (ZGD-1), which requires public interest entities

with an average number of employees greater than 500 on the balance sheet cut-off date to include

a non-ﬁnancial statement in their business report. This content is presented in an integrated way

throughout the whole annual report.



The information on environmental, social and employee matters, respect for human rights, and anti-

corruption and bribery matters, as well as the description of the policies and results of the policies in

these areas are presented in Section

12. Sustainable development at the Triglav Group



The main risks related to the abovementioned areas are presented in the context of

Risk

Management

, Section

11. Development activities

and Section

12. Sustainable development at the

Triglav Group



A description of the Group’s business model or value creation model is presented in Section

2. Triglav

Group and Zavarovalnica Triglav in 2022



A description of the diversity policies implemented in relation to administrative, management and

supervisory bodies is presented in Section

5. Corporate Governance Statement



The disclosures required by the Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021

supplementing Regulation (EU) 2020/852 concerning the proportion of exposures to taxonomy

non-eligible and taxonomy-eligible economic activities are described in Section

12. Sustainable

development at the Triglav Group

Andrej Slapar

President of the Management Board

Tadej Čoroli

Member of the Management Board

Blaž Jakič

Member of the Management Board

Uroš Ivanc

Member of the Management Board

Marica Makoter

Member of the Management Board

A holistic view of

employees' health

The message that raises awareness about the importance

of having a correct posture when using a computer

is only part of the wide-ranging care shown by

Zavarovalnica Triglav for the health of its employees.

»We couldn't have wished for a better celebration of

the ten-year anniversary,« said

Duša Lindtner,

who leads

a committed team of the Triglav.smo – Protecting Health

programme, upon receiving a national and European

award for good practice. With many activities and

beneﬁts for employees, the programme promotes

a healthy lifestyle and a good work-life balance.

In addition,

authorised occupational medicine specialists

participate in the programme with the aim of co-creating

in-house health content and provide their services for

the well-being of each individual.

The European Agency for

Safety and Health at Work

(EU-OSHA) awarded

Zavarovalnica Triglav a good

practice award for its strategic

approach to the management

of occupational safety and

health and its contribution to

the effective elimination of

musculoskeletal disorders.

Our concern for

occupational safety and

health: good national

and European practices

Zavarovalnica Triglav

received a national award

from the Ministry of Labour,

Family, Social Affairs and

Equal Opportunities for

the effective prevention and

management of work-related

musculoskeletal disorders

and the comprehensive

regulation of occupational

health and safety.

WINNER

202022

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12.

Sustainable development

at the Triglav Group



Implementing the Triglav Group’s strategic ambitions in sustainable

development (ESG).



In the context of its insurance business, the Group develops

sustainability-oriented products and services and increases the

premium written from products promoting general social and environmental

beneﬁts, including energy efﬁciency and low-carbon technology.



The share of green, social impact and sustainable bonds rose to 10%.



The Group’s Triglav Zeleni equity fund complies with Article 8 of EU regulation

on sustainability-related disclosures in the ﬁnancial services sector.



Employee satisfaction was maintained at a high level, and client satisfaction was

further improved.



The Scope 1 and Scope 2 carbon footprint decreased by 13%. A total of 63% of

electricity for the Group was obtained from renewable energy sources.



Preventive health activities were strengthened. For the effective prevention and

management of work-related musculoskeletal disorders, Zavarovalnica Triglav

was awarded an EU-OSHA Healthy Workplaces Good Practice Award.



Commitment to respect human rights in business operations was incorporated

into business processes. Due diligence of respect for human rights is carried out

on a regular basis as part of risk assessment.

12.1 Implementation of strategic guidelines and

sustainable development goals of the Triglav Group

The implementation of the Group’s mission was closely linked with its pursuit of sustainability goals,

thereby creating a long-term stable basis for its proﬁtable and safe operations, promoting the transition

to a sustainable society and reducing its impact on climate change. At the end of 2021, an action plan

for sustainable business, including key strategic activities and legislative requirements for individual

departments and divisions, was adopted.

At Group level, sustainability-related activities are coordinated and directed by the Sustainable

Development Coordinator, monitored by the Compliance and Sustainable Development Committee and

decided on by the parent company’s Management Board.

The ambitions regarding the ESG goals for 2025 are achieved in four key areas:



Insurance and asset management

In the Triglav Group’s investment portfolio, the share of green, sustainable and social impact bonds

was further increased (see Section

7.9 Investment structure of the Triglav Group and Zavarovalnica

Triglav

for more details). In early 2022, by joining the Partnership for Carbon Accounting Financials

(PCAF), the Group committed to publish the carbon footprint of at least one asset class over a three-year

period. The Triglav Zeleni sustainability equity fund, which complies with Article 8 of EU regulation on

sustainability-related disclosures in the ﬁnancial services sector, has been available to clients for several

years (See Section

7.11 Asset management

for more information).

In the insurance segment, products are designed that promote social and environmental beneﬁts,

such as solar power plant insurance, micromobility insurance, electric and hybrid vehicle insurance,

agricultural insurance with an emphasis on local production and improving crop protection against

drought. With the aim of ensuring that the Group’s range of insurance products complies with

Regulation (EU) 2017/2358, an internal methodology was developed to assess their sustainability.

To better manage sustainability risks at Group level, monitoring of the insurance portfolio of legal

entities according to the European classiﬁcation of economic activities (NACE) was set up.



Own business processes

The Group’s Scope 1 and Scope 2 carbon footprint decreased by 13% in 2022. In light of the energy

crisis and care for the environment, efforts were made to raise employees’ awareness about energy

conservation and the importance of sustainable practices. As part of our carbon footprint calculation

and the promotion of sustainable mobility, a survey was conducted among employees about how they

commute to work. In 2022, ﬁrst investments were made in solar panels to provide for partial energy

self-sufﬁciency. The share of electric and hybrid vehicles in the ﬂeet was increased. The Group companies

took many additional measures related to digitalisation and paperless operations, enabling the Group to

reduce overall paper consumption. The total quantity of waste generated at Group level fell by 6%.

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

Responsible stakeholder engagement

Employee and client satisfaction remained

high in 2022. The concept of ﬂexible working is

being implemented with the aim of improving

employees’ work-life balance and expanding

programmes promoting health and well-being,

while providing for multidimensional diversity

and the development and training of employees.

The Group will continue to participate in social

responsibility and environmental projects, enter

into partnerships and give donations. In early

2022, together with partners from the ﬁelds

of sports, culture, healthcare, prevention and

the economy, the Insure Our Future project was

launched, dedicated to raising awareness about

the 17 United Nations Sustainable Development

Goals (SDGs). Sustainability aspects began to be

incorporated into the execution of some events

(Triglav Run, Our Day). An important part of

employee training takes place in digital format.



Effective corporate governance

The Triglav Group achieves high corporate

governance standards, while improving the

public disclosures of its sustainable business and

operations. In 2022, Triglav Funds adopted the

Sustainable Business Policy and deﬁned the Key

Indicators of Sustainable Business. To make sure

that its efforts in sustainable development are

visible and communicated properly, it is a signatory

to selected international initiatives (UN PSI, UNEP

FI and PCAF, disclosures are made in accordance

with the GRI and SASB sustainability standards).

The Group disclosed through CDP’s climate change

questionnaire for the second year in a row.

See Section

4. Triglav Group strategy and plans

for

more details about the achievement of strategic

ambitions in sustainable development (ESG).

At Group level, sustainability-related activities

are coordinated and directed by the Sustainable

Development Coordinator, monitored by the

Compliance and Sustainable Development

Committee and decided on by the parent

company’s Management Board.

▪

Reporting implemented

2009

2006

▪

Sustainable

Development Report

▪

Established the

Triglav Zeleni

mutual fund

2016

2012

▪

Launched

carbon footprint

measurement

▪

Adopted the Triglav

Group’s

sustainability

commitment

▪

Introduced reporting

according to

international SASB

2020

2017

▪

Incorporated SDGs in

public disclosures

▪

Signatory to UNEP FI

▪

Joined PCAF

2022

2021

▪

Adopted the Triglav Group’s

strategic ambitions in

sustainable development (ESG)

▪

Introduced climate change reporting

▪

Identified the sustainability

aspects of investment policy

▪

Carbon footprint measurement in

accordance with the GHG protocol

(Scopes 1, 2 and 3) launched for

the Group and base year set at 2019

▪

Doubled

the share of

green and sustainable

investments

▪

<1%

of the total value

of investments are in

coal industry securities

▪

15%

lower carbon

footprint per employee

Goal 2025

Goal 2050

▪

Carbon neutrality of

the Triglav Group’s

business processes

Principles for

Sustainable Insurance

Sustainable development milestones of Zavarovalnica Triglav and the Triglav Group

The Group’s sustainable development goals

↑

20%

rise in

premium written by

the Group from products

with environmental and

social impacts

95%

of electricity

consumed

at Zavarovalnica Triglav

comes from

renewable sources

(63% at Group level)

↓

1.86

tCO

(the carbon

footprint) per employee

in the Group and 2.10

tCO2 at Zavarovalnica

Triglav (Scopes 1 and 2)

Transition to a climate-neutral

and resilient circular economy

billion

km driven with the DRAJV

safe driving application

4.00

the ORVI index,

high employee

satisfaction

↑

NPS for the Group,

↑

76 NPS for

Zavarovalnica Triglav –

high client satisfaction

Responsible stakeholder and

community engagement

Engagement

of the Compliance and

Sustainable Development

Committee and

the Sustainable

Development Coordinator

in sustainability

risk management



Policies adopted to

integrate ESG aspects

into operations

41%

of women at first

and second management

levels under the

Management Board,

24% of women in

management and

supervisory bodies

Effective corporate governance



Environmental, social and

governance factors (ESG)

included in investment

processes with the aim of

ensuring long-term

profitable investments

(the sustainability aspect

of the investment policy)

↑

10%

share of social impact,

green and sustainable

bonds in debt securities

Sustainable aspects of

asset management

Integrating ESG aspects into product development and

the execution of own business processes. By 2025,

to reduce the carbon footprint (Scopes 1 and 2) of

own activities per employee using the location-based

method by 15%. Implementing the European Green Deal

on carbon neutrality by 2050.

Maintaining high employee and client satisfaction.

Developing an open culture of diversity and cooperation.

Promoting projects that contribute to the achievement of

the United Nations Sustainable Development Goals

(SDGs).

Upgrading high corporate governance standards

by integrating ESG aspects and effectively managing

sustainability risks.

Increasing the scope of public disclosures related to

main aspects of sustainable business (according to GRI,

SASB, CDP/TCFD methodologies).

To double the share of social impact, green and

sustainable bonds in debt securities by 2025.

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Highlighted topics and methods of stakeholder engagement

Stakeholders

Key interests

Engagement method

Engagement results

Clients



Understanding the needs of clients



Rapid claim settlement



Innovative ﬁnancial and insurance products and services



Client-tailored insurance products – throughout the entire lifecycle



Economic stability of the Company



Clear terms and conditions



Quality insurance and ﬁnancial products and services



A broad range of quality assistance services



Sustainable development of the Company



Financial literacy



Digital ways of doing business and an easy-to-use online presentation of

products/services



Raising awareness of users about risky behaviour and promoting prevention



Personal contact with insurance experts, asset managers



Recording complaints and compliments and responding thereto



Telephone conversations



Opinion polls and surveys



Websites, blogs and e-newsletters



Social networks



Mobile applications



Marketing communication



610,569 telephone conversations in Zavarovalnica Triglav’s call centres.



164,126 replied electronic messages at Zavarovalnica Triglav.



More than 29,000 subscribers to the newsletters

Vozim se

(I’m driving) and

Vse bo v redu

(Everything Will Be Alright).



132,694 users of the i.triglav digital ofﬁce.



More than 115,000 regular users of the

Vse bo v redu

and the

Vozim se

portals.



Improved NPS of the Group by 4 points and of Zavarovalnica Triglav by

3 points.



299,885 processed claim ﬁles by Zavarovalnica Triglav, of which 266,433

were newly registered in 2022.



3,429 complaints and 52 compliments in Zavarovalnica Triglav (according

to the number of claims at Zavarovalnica Triglav and Triglav, pokojninska

družba, the rate of complaints was 1.22% compared to 1.30% in 2021).

Employees



Internal culture of cooperation



Rewarding of performance



Personal and professional development



Career advancement system



Information about important milestones and changes in the Company



Business strategy



Work-life balance



Education and additional training



Care for safety and health



Employee loyalty



Management participation (the works council, trade unions,

employee representatives in the supervisory boards)



Career development and training system



Measurement of organisational vitality



Opinion polls and surveys



Triglav.smo programme



In-house print and online media



In-house events, professional training, sports and recreational events



Personal contact



4.00 – the ORVI index maintained at the same level



24% of employees are members of the Triglav Group mountaineering and

sports clubs.



Supplemental pension insurance for 59% employees of the Group and 95%

of the Company.



The group insurance package Comprehensive Medical Care (Celostna

zdravstvena oskrba – CZO), in which 50% of all employees of the Group and

83% of the parent company are included.



33 training hours per employee at Group level.

Shareholders/

investors



Business strategy and its implementation



The Group’s operations, ﬁnancial position and plans



The implementation of the dividend policy and ZVTG share proﬁtability



Capital adequacy and risk management



Implementation of growth and development activities



Performance by particular market, situation in the markets and outlook



Corporate governance and sustainable operations



Cost-effectiveness



Achievement of the target credit rating



Effective organisation and governance of the Group



General Meetings of Shareholders



Sessions of the Supervisory Board and its committees



Quality and up-to-date information on the SEOnet



Information provided as presentation for investors



Active contact and relations with institutional investors (investor

conferences, individual meetings, conference calls)



Organised presentations for shareholders natural persons and

provision of information (by email and telephone)



Corporate website, LinkedIn and Twitter



Minority shareholders’ associations



77% of all voting rights at the annual General Meeting of Shareholders.



The Company provides organised collection of proxies to vote at the

General Meeting of Shareholders.



28 publications of controlled information (all in Slovenian and English).



11 events held for institutional investors.



2 organised presentations for retail investors.



Cooperation with minority shareholders’ associations.



An available ﬁnancial calendar of all key announcements.



An available calendar of events for investors.

State and

supervisory bodies



Ensuring capital adequacy



Safety of policyholders and/or users of insurance services



Efﬁcient risk management system



Compliance of operations and insurance and ﬁnancial services and products



Complying with all obligations of a public company



Responsible and sustainable operations



Regulatory reporting (to the Insurance Supervision Agency, the

Securities Market Agency)



Regular reviews by inspection and supervisory bodies



Audits by certiﬁed auditors



4 complaints with respect to personal data protection at the Triglav Group,

3 of which were partially grounded.



886 fraud cases conﬁrmed out of 1,651 reported cases of suspected

insurance fraud insurance.

Suppliers



Long-term cooperation



Reliable and timely payments



Upgrading the existing cooperation



Delivery times, prices of services and goods



Delivery of environmentally friendly material



Paperless operations



Public tenders and competitions



Working meetings



Email and electronic operations



Telephone conversations



Assessment of suppliers according to ESG criteria



419 assessments of suppliers according to regulatory and expanded

sustainability criteria, which conﬁrmed that they respect employees’ rights,

human rights and environmental legislation.

The local and

wider community



Trafﬁc safety



Fire safety



Health protection and care



Co-development of projects in the areas of culture, sport, prevention,

health, art, charity



Infrastructure investments



Access to services for people with various disabilities



Insurance and ﬁnancial literacy



Fair business practices



Disaster relief



Partnerships with non-proﬁt organisations and educational

institutions and execution of joint projects



Joint projects with local communities, particularly in trafﬁc safety



Funds allocation system for sponsorships and donations



Cooperation with local decision-makers



Telephone conversations



Involvement of over 160 partners in the Insure Our Future project, with

the aim of raising awareness about the United Nations Sustainable

Development Goals.



Support for 127 young talents in ten years of the Young Hopes project, to

which over EUR 500,000 was allocated.



2,000 motorcyclists attended safe driving workshops over nine years.



A total of 75 events, training sessions, workshops, seminars and video

recording sessions to promote insurance literacy, risk awareness, presentation

of products and services were held.



24 sponsored top athletes in Slovenia.



EUR 4.1 million for prevention activities, EUR 5.1 million for sponsorships and

EUR 1.1 million for donations.



12 speed display signs installed, co-ﬁnanced by Zavarovalnica Triglav in 2022.

Media



Transparent information about the operations, events and changes in the

Triglav Group



Information about insurance and ﬁnancial products and services



Cooperation with local and broader communities



Professional insurance and ﬁnancial topics



Press releases and statements



Meetings with media representatives



Answers and explanations



Telephone conversations



Websites



63 press releases by Zavarovalnica Triglav.



178 answers to the questions of the press by Zavarovalnica Triglav.



6,972 publications related to key topics about the Triglav Group in the media.

12.2 Key stakeholders

The Group’s identiﬁed key stakeholders are

clients, employees,

suppliers and partners, shareholders and investors, state and

supervisory bodies, local communities and the media

. They

are proactively included in the Group’s operations, thereby

strengthening mutual trust and understanding.

Their needs and interests are identiﬁed through mutual

relationships at strategic and operational levels. In doing so, the

Company measures reputation, satisfaction and Net Promoter

Score (NPS), monitors regulatory changes and implements their

requirements and recommendations, analyses complaints and

compliments, maintains daily contact with investors and clients,

regularly communicates with the media and so on.

In addition, it regularly monitors interests, opinions and proposals

analysing the needs and interests of stakeholders

, which is also

used to examine the desired disclosures. See Section

4 About the

report

for more information.

Gained knowledge and guidelines are taken into account as much

as possible in the Group’s business and operations.

GRI 2-29

SASB: FN-IN-270a.2

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12.3 Environmental aspects

12.3.1 Protection of the environment in business processes

In line with its strategic ambitions, the Group reduces its impact on the natural environment

primarily through the efﬁcient use of energy and by limiting greenhouse gas emissions. It strives

for careful waste management, lower consumption of water and other resources. Its employees and

partners are regularly reminded to act responsibly towards the natural environment, making them

aware of its importance.

Among the goals set out in the Group’s strategic ambitions relating to sustainable development is

a higher share of electric and hybrid vehicles

. In 2022, they accounted for 8% of all company vehicles

in the Group (compared to 4% in the previous year), while at the parent company this share increased

from 11% to 18%.

At Group level, 40 electric and 10 hybrid vehicles and 24 company bicycles are

available to employees, which they used to travel to 1,100 business obligations; in addition, 33 electric

scooters are available for short trips. In Ljubljana, employees are able to use the car sharing service

to travel between the Company’s three locations

, thereby gradually replacing company vehicles with

low mileage.

The Group's employees are invited to use the DRAJV application to reduce fuel consumption and travel

safely, providing them with training in safe driving courses and encouraging them to use a bicycle.

Paper consumption is reduced by developing software, through electronic archiving and digitalisation of

business processes (paperless operations, encouraging employees to use e-signing and reduce the use

of printers). The quantity of plastic waste is reduced by using company mugs and water bottles. In 2022,

62% of all training sessions were held digitally (compared to 19% before the COVID-19 pandemic).

In North Macedonia, free use of a replacement electric car was offered to clients with

comprehensive car insurance while their car was being repaired.

In 2022, the Company also carried out teambuilding programmes, which contributed to the quality

development of the community, e.g. the playground at a kindergarten was renovated and arrangements

were made with the associations that will be the Company’s partner in organising volunteer activities

for employees.

In the supplier selection process, the suppliers’ sustainable business practices are checked (see Procurement

practices in Section

12.4.4 Responsibility to suppliers

12.3.2 Carbon footprint

In 2022, the Group’s carbon footprint (Scopes 1 and 2) was

reduced

by 13% compared to 2021, and

by 14% compared to the 2019 base year. The Group’s largest source of GHG emissions are Scopes 1 and

2 taken together (a 50% share). They are created by the consumption of electricity, district heating,

heating fuel and motor fuel for cars owned or under operational lease by the companies included in

the calculation.

Taken separately,

Scope 1 carbon footprint

increased by 12% at Group level in 2022 compared to the

year before due to higher fuel consumption by company vehicles. At Zavarovalnica Triglav it increased

by 14%. Compared to the 2019 base year, Scope 1 carbon footprint at Group level rose by 2%.

Compared to the previous year,

Scope 2 carbon footprint

fell by 20% at Group level in 2022 according to

the location-based method and by 11% at Zavarovalnica Triglav. In 2021, the Company only purchased

electricity from renewable sources for premises owned, therefore the Group’s Scope 2 carbon footprint

decreased by 27% according to the market-based method, which takes into account emission factors

obtained from the energy supplier, and that of the Company by 11%. The share of green electricity

for the premises owned by the Company was 100%. Compared to the 2019 base year, Scope 2 carbon

footprint at Group level according to the location-based method decreased by 20%.

Scope 3 carbon footprint

at Group level was 33% higher in 2022 compared to the previous year, and

3% lower compared to 2019. The largest share in 2022 was accounted for by employees commuting

to work, business trips and purchases of computer equipment. Emissions from business trips rose by

30% at Group level by 22% at the parent company, because the number of business trips in the past

two years was lower due to the COVID-19 pandemic. Emissions from employees commuting to work

increased by 56% at Group level and by 37% at the parent company.

GRI 3-3, 306-2

The total number of company vehicles includes all vehicles owned by the Company or under operating lease,

including the vehicles used for private purposes. Due to a change in methodology, the share for the past year is lower than published in

the Annual Report of the Triglav Group and Zavarovalnica Triglav for 2021.

GRI 3-3, 305-1, 305-2, 305-3

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

GHG emissions in tCO

Index

Quantities of speciﬁc activities

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Scope 1 – Direct GHG emissions

2,836

2,526

2,139

2,790

112

118

102

- Scope 1.1 – Consumption of energy products from

own capacities

580

458

557

810

127

- Scope 1.2 – Fuel consumption of company cars

2,257

2,068

1,582

1,981

109

131

114

Scope 2 – Indirect GHG emissions (location-based)

7,020

8,773

8,463

8,728

104

Scope 2 – Indirect GHG emissions (market-based)

4,248

5,849

8,243

7,986

Scope 3 – Other direct GHG emissions

9,814

7,377

7,028

10,098

133

105

- Business travel (plane, train, bus, car)

1,430

1,101

1,125

1,963

130

- Purchase of computer equipment

848

917

909

705

101

120

- Waste management

196

195

172

100

113

419

- Employee commuting to work

7,036

4,501

4,207

6,565

156

107

- Paper consumption – internal

130

128

338

431

101

- Paper consumption – external

165

526

254

364

207

- Water consumption

116

Total Scope 1–2 GHG emissions

9,857

11,299

10,602

11,518

107

Total Scope 1–3 GHG emissions

19,671

18,677

17,630

21,617

105

106

Carbon footprint (Scope 1–2) per employee

1.86

2.09

1.95

2.13

107

Overview of the carbon footprint of the Triglav Group by scope

Following the change in data capture, the data for 2019, 2020 and 2021 were adjusted.

GHG emissions in tCO

Index

Quantities of speciﬁc activities

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Scope 1 – Direct GHG emissions

693

605

587

938

114

103

- Scope 1.1 – Consumption of energy products from

own capacities

180

187

178

393

105

486

- Scope 1.2 – Fuel consumption of company cars

513

419

409

546

123

102

Scope 2 – Indirect GHG emissions (location-based)

4,004

4,503

4,351

4,379

103

Scope 2 – Indirect GHG emissions (market-based)

1,416

1,589

4,173

4,318

Scope 3 – Other direct GHG emissions

5,608

4,634

4,013

5,565

121

115

101

- Business travel (plane, train, bus, car)

1,053

861

886

1,369

122

- Purchase of computer equipment

443

602

398

315

151

141

- Waste management

125

396

- Employee commuting to work

3,837

2,791

2,393

3,463

132

117

111

- Paper consumption – internal

128

- Paper consumption – external

146

229

209

322

109

- Water consumption

Total Scope 1–2 GHG emissions

4,697

5,109

4,939

5,317

103

Total Scope 1–3 GHG emissions

10,305

9,743

8,951

10,882

106

109

Carbon footprint (Scope 1–2) per employee

2.10

2.14

2.09

2.23

102

Overview of the carbon footprint of Zavarovalnica Triglav by scope

Following the change in data capture, the data for 2019, 2020 and 2021 were adjusted.

Comparison of the quantity of Scopes 1, 2 and 3 carbon footprint in 2019–2022

12,000

10,000

8,000

6,000

4,000

2,000

Scope 1 – Direct GHG emissions

Scope 2 – Indirect GHG emissions

(location-based)

Scope 3 – Other direct GHG emissions

2021

2019

2022

2020

Sustainable development at the Triglav Group

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The Triglav Group’s carbon footprint calculation was prepared in accordance with the

methodology for calculating Zavarovalnica Triglav’s and the Triglav Group’s carbon footprint,

deﬁning in greater detail the scope and limits, the method of data collection and analysis, and

emission factors. For year-on-year comparisons and setting targets to reduce the carbon footprint,

2019 was set as the base year, when the epidemic situation had not yet affected the total volume

of greenhouse gas emissions (GHG). The carbon footprint calculation according to the location-

based method includes all Group companies that are fully consolidated and have ofﬁce space or

employees and therefore meet the materiality criterion.

The methodology follows the guidelines of the internationally recognised Greenhouse Gas

Protocol and takes into account the release factors of the international database, which classiﬁes

emissions into three scopes (Scopes 1, 2, 3). The calculation of the Group’s carbon footprint

included the following scopes and categories of emissions:



Scope 1:

direct emissions from sources owned or controlled by the company (e.g. boilers,

stoves, painting chambers, company vehicles) and fugitive emissions associated with

air-conditioning units.



Scope 2:

indirect emissions resulting from purchased district heating and electricity.



Scope 3:

indirect emissions resulting from business trips by air, train, bus and car not owned

or leased by the company, from purchases of IT equipment, generated waste, employee

commuting, consumption of paper and water.

Use of energy products at the Triglav Group and Zavarovalnica Triglav in energy product unit

Use of energy products at the Triglav Group and Zavarovalnica Triglav in tonne of oil equivalent (TOE)

Energy product unit

Index

Quantities

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Triglav Group

Heating water

kWh

4,618,841

4,967,025

4,359,684

4,411,103

114

105

Fuel oil

29,410

27,388

57,342

89,790

107

Gas

kWh

2,221,206

1,656,589

1,660,892

2,581,140

134

100

Wood pellets

49,030

51,810

47,000

26,000

110

189

Electricity

kWh

13,353,852

14,086,990

12,841,319

13,382,997

110

100

Green electricity

kWh

8,448,791

8,466,599

345,961

117,659

100

2,447

7,181

Green electricity

63.3

60.1

2.7

0.9

105

2,234

7,190

Quantities

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Zavarovalnica Triglav

Heating water

kWh

3,843,000

4,045,257

3,629,474

3,741,053

111

103

Fuel oil

15,520

7,760

6,126

23,414

200

127

Gas

kWh

723,129

879,589

843,736

1,732,335

104

Wood pellets

Electricity

kWh

8,330,044

8,890,970

8,438,062

8,404,232

105

Green electricity

kWh

7,913,093

8,446,421

345,961

117,659

2,441

6,725

Green electricity

95.0

4.1

1.4

100

2,317

6,785

TOE (ton equivalent)

Index

Triglav Group

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Hot water

397

427

375

379

114

105

Fuel oil

107

Gas

196

146

147

228

134

100

Wood pellets

110

189

Electricity

1,148

1,211

1,104

1,006

110

114

Green electricity

726

728

100

2,447

8,976

Total

1,787

1,829

1,694

1,701

108

105

Zavarovalnica Triglav

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Hot water

330

348

312

322

111

103

Fuel oil

200

127

Gas

153

104

Wood pellets

Electricity

716

764

726

578

105

124

Green electricity

680

726

2,441

8,407

Total

1,124

1,197

1,117

1,073

107

105

Following the change in data capture, the data for 2019, 2020 and 2021 were adjusted.

The calculation for a tonne of oil equivalent (toe) is based on the assumption that 10 kWh of electricity

are generated from one litre of fuel oil and 9.5 kWh from a m3 of natural gas. GRI 302-1.

Based on an independent veriﬁcation carried out in accordance with the ISO 14064-3 standard, the

veriﬁer, SIQ Ljubljana, gave

a positive opinion

on the carbon footprint report of Zavarovalnica Triglav d.d.

and the Triglav Group and conﬁrmed that the report:



was prepared in accordance with the GHG protocol for GHG emission reporting (Scopes 1 and 2

emission reporting guidelines),



was correct in terms of content and fairly presents GHG data (Scopes 1 and 2) from 1 January 2022

to 31 December 2022 for Zavarovalnica Triglav d.d. and the Triglav Group.

Use of energy products

The Group consumed 1,787 tonnes of oil equivalent (TOE) of energy on heating, cooling, lighting

and electrical and electronic equipment, down by 2% relative to 2021, while the Company reduced

its energy consumption by 6%. At the parent company, consumption of gas, electricity and water for

heating decreased the most, whereas fuel oil consumption increased the most.

The Company launched a project to install solar power plants on some roofs of its commercial buildings,

which together will cover around 8% of its total electricity needs. In Ljubljana (at Dunajska cesta 22),

thermostatic valves for central temperature regulation were installed and the basic infrastructure for

a higher number of electric cars was built. The guidelines aimed at reducing the consumption of energy

products used for heating and cooling as well as electricity in general were taken into account in each

renovation of the Group’s business premises. LED lighting is installed in all new business premises

and on advertising signs (see sections

12.1 Implementation of strategic guidelines and sustainable

development goals of the Triglav Group

and

7.10 Investment in own-use real property and equipment

for more information).

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Waste management

Compared to the year before, the total quantity of waste generated in 2022

decreased by 6% at Group level and by 18% at the Company. The share of

recycled waste increased to 29.7% at Group level and 37.1% at the Company.

This year, too, the consumption of paper for internal purposes was reduced.

The average daily consumption of ofﬁce paper (A4 and A3 formats) in sheets

per employee fell to 19 at Group level (compared to 20 in 2021) and to 18 at

the Company (compared to 23 in 2021).

Waste separation and disposal depends on the waste management system

at the local level or at the level of the country in which the Group members

operate. Full waste separation is carried out in Slovenia, whereas in other

countries waste separation and disposal is not yet fully regulated, therefore

the quantity and type of waste are often not available. In commercial buildings

in Slovenia, employees are encouraged in various ways to use less packaging

and better separate waste. In 2022, the subsidiary company in Serbia

adopted a waste management plan, which implemented the monitoring of

waste-by-waste separation category and type of waste disposal.

Employees are encouraged to use less packaging and better separate waste in

a variety of ways.

Waste management at the Triglav Group and Zavarovalnica Triglav

Triglav Group

Index

Unit

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Paper

76,124

71,139

113,209

85,443

107

Biological waste

36,107

24,669

12,968

12,567

146

190

287

Packaging

66,008

57,883

43,677

53,328

114

133

124

Glass

3,903

1,438

11,093

5,396

271

Mixed waste

430,833

431,965

346,780

415,353

100

125

104

Electrical equipment and other

825

64,455

135,026

5,861

Total recycled waste

182,142

155,129

180,947

156,734

117

116

Total waste intended for removal

431,658

496,420

481,806

421,214

103

102

Total waste generated

613,800

651,549

662,753

577,948

106

Water consumption

68,086

58,659

65,700

68,847

116

Waste in ton/employee

116

124

125

109

106

Zavarovalnica Triglav

Index

Unit

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Paper

34,495

35,806

65,319

38,818

Biological waste

30,026

20,727

10,059

9,849

145

206

305

Packaging

35,366

37,120

24,851

29,929

149

118

Glass

667

651

7,546

971

102

Mixed waste

170,202

174,971

137,730

180,327

127

Electrical equipment and other

275

64,000

134,958

5,852

Total recycled waste

100,554

94,304

107,775

79,567

107

126

Total waste intended for removal

170,477

238,971

272,688

186,179

Total waste generated

271,031

333,275

380,463

265,746

102

Water consumption

18,347

19,116

23,342

23,071

Waste in ton/employee

121

148

170

118

103

Paper consumption at the Triglav Group and Zavarovalnica Triglav

Paper consumption in kg

Index

Triglav Group

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Total paper consumption*

321,002

725,961

629,639

817,114

115

Paper consumption by employees (A4 and A3)

131,356

133,990

312,769

369,200

Average daily ofﬁce paper consumption per employee

(sheets)

Zavarovalnica Triglav

2022

2021

2020

2019

2022/2021

2021/2020

2022/2019

Total paper consumption*

211,006

317,563

280,839

409,710

113

Paper consumption by employees (A4 iand A3)

52,460

68,120

53,214

72,090

128

Average daily ofﬁce paper consumption per employee

(sheets)

128

Following the change in data capture, the data for 2019, 2020 and 2021 were adjusted.

* Includes paper consumption for internal and external purposes, including envelopes, promotional material, printed material, insurance documentation, etc.

GRI 306-1, 306-2, 306-3, 306-4, 306-5

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The Triglav Group worked with the Slovenia Forest Service to

reforest the Karst region

after the

devastation caused by ﬁres in 2022. At the end of November, employees with their families and friends

joined volunteers from Slovenia and abroad to plant saplings in the ﬁrst large-scale campaign.

At the North Macedonian life insurer, employees organised a tree-planting campaign by the Veles

Lake entitled “New life – for life with a smile”, while employees at Triglav penzisko društvo, Skopje

participated in the tree-planting campaign “Plant a dream for a better future”. Triglav Skladi promoted

investing in sustainable companies with the “Create a #ﬂoral summer” campaign.

See Section

12.4.3 Responsibility to the community

for more details on prevention projects.

12.3.3 Services and products promoting social and

environmental impacts

Sustainability principles are implemented already when designing insurance and investment products.

Each product in the development and approval stage is assessed in accordance with the internal

methodology for sustainability impact assessment. Described below are the most important services

and products that promote social and environmental beneﬁts.



Solar power plant insurance and micromobility insurance:

Solar power plant insurance provides

insurance for solar power plants and adequate insurance coverage for users of energy from

renewable sources. Insurance for small electric means of transport is designed to promote the use of

means of transport with zero emissions.



Comprehensive car insurance and roadside assistance insurance:

These products include all the

necessary coverage for

electric and hybrid vehicles

, because they provide insurance for the entire

infrastructure for charging such vehicles (charging stations, cables, etc.). In North Macedonia, the

Kasko Green insurance product range was designed for owners of electric and hybrid vehicles, which

includes a 50% discount when taking out comprehensive car insurance.



The DRAJV application:

With a lower motor vehicle insurance premium, it encourages clients to

drive safely, economically and responsibly.



Co-ﬁnanced agricultural insurance:

These insurance products promote the supply of locally

produced food and its consumption, as well as shorter supply chains. In this way they contribute to

the preservation of agricultural production and rural settlements, which is particularly important for

more remote areas with difﬁcult conditions for farming (less favoured areas for agriculture).



The range of agricultural insurance products:

Greater emphasis is being placed on plant production

insurance and insurance of small and medium-sized livestock farms, which are a signiﬁcantly

smaller burden on the environment than intensive animal farming.



Agricultural insurance premium policy:

It promotes the importance of establishing preventive

protection against increasing production risks as a result of climate change. The Company

participates in prevention programmes

for sustainable food production (irrigation systems, sprinkler

systems to protect against spring frost, anti-hail nets, greenhouses, tunnels).



Index insurance products

, such as crop insurance against drought with remote sensing technology

to detect a lack of soil moisture, help to reduce the burden on the environment in the claim

settlement process. Damage assessment procedures in the ﬁeld using tablets and drones are also

more environmentally friendly.



Beneﬁts for young farmers:

In partnership with the Slovenian Rural Youth Association, young

farmers receive beneﬁts when concluding insurance upon taking over a farm. Support is provided to

innovative and preventive projects such as the IMK project (Innovative Young Farmer) and (Un)safe

Driving with Tractors.



Triglav Skladi’s Triglav Zeleni equity fund:

The fund complies with EU regulation on sustainability-

related disclosures in the ﬁnancial services sector. The fund invests in the shares of leading

companies in the ﬁeld of sustainable development and corporate social responsibility. In 2022,

Triglav Skladi offered the option of investing in sustainable funds for the life insurance products with

a savings component.

Written premium from insurance and investment products that promote general social and

environmental beneﬁts is on the rise, which helps to realise the Company’s strategic ambitions.

It reached EUR 20.8 million in 2022 (index 127). The Triglav Zeleni fund’s assets under management

rose by 18% to EUR 49.2 million.

Our now traditional preventive workshops titled »(Un)safe Driving with Tractors« were held for young farmers.

GRI G4-FS7, G4-FS8, SDG 2, SDG 7, SDG 9, SASB: FN-IN-410b.1, FN-IN-410b.2

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Written premium from the Triglav Group’s insurance products that promote social and

environmental beneﬁts and Triglav Zeleni fund’s assets under management

Written premium and assets under

management

Index

2022

2021

2020

2022/2021

2021/2020

Crop insurance

17,056,736

13,392,760

11,140,631

127

120

Electric vehicle insurance

2,427,251

1,920,092

1,429,155

126

134

Micromobility insurance

550,591

484,875

475,136

114

102

Solar power plant insurance

773,394

537,912

459,248

144

117

Total written premium

20,807,972

16,335,639

13,504,170

127

121

Assets managed by the Triglav Zeleni fund

49,246,838

41,833,991

24,556,690

118

170

Integration of ESG factors into investment management and strategy

Investing of the Group’s ﬁnancial assets takes into account the sustainability aspect of the investment

policy (in compliance with the requirements of Regulation (EU) 2019/2088 on sustainability–related

disclosures in the ﬁnancial services sector), which includes a description of sustainability risks and an

overview of adverse sustainability impacts.

In the investment process, the Company pursues the social corporate responsibility guidelines

developed by the Organisation for Economic Co-operation and Development (OECD) and the principles

for responsible investment (PRI), supported by the United Nations.

Voluntary and mandatory disclosures of proportions of exposure of

taxonomy-eligible and taxonomy non-eligible economic activities

Presented below are some of the proportions of exposure to taxonomy-eligible and taxonomy

non-eligible economic activities according to the EU Taxonomy Regulation in total assets and

non-life insurance activities. The proportions presented partially comply with Commission Delegated

Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852.

Proportions and values of individual categories in the Triglav Group’s total assets (voluntary disclosure)

31 December 2022

31 December 2021

Triglav Group

Proportion

Value in EUR

Proportion

Value in EUR

The proportion in total assets of exposures to taxonomy

non-eligible

economic activities, except exposures to central

governments, central banks and supranational issuers excluded

from the calculation of the numerator and denominator

89%

2,184,808,041

85%

2,025,967,171

The proportion in total assets of exposures to taxonomy

eligible

economic activities, except exposures to central

governments, central banks and supranational issuers excluded

from the calculation of the numerator and denominator

11%

281,908,313

15%

346,600,213

The proportion in total assets of exposures to taxonomy

eligible economic activities of ﬁnancial undertakings

69,869,725

88,379,241

The proportion in total assets of exposures to taxonomy

eligible economic activities of non-ﬁnancial undertakings

211,081,858

11%

255,924,963

Exposures to central governments, central banks and

supranational issuers and derivatives

44%

1,091,468,585

58%

1,382,189,062

Exposures to undertakings that are not obliged to publish

non-ﬁnancial information pursuant to Article 19a or 29a of

Directive 2013/34/EU

45%

1,596,251,823

41%

1,521,997,653

Estimates of the Bloomberg information system were used for the calculation.

Derivatives are excluded from the numerator for calculating non-eligible and eligible exposures.

Exposures to undertakings that are not obliged to publish non-ﬁnancial information pursuant to Article 19a or 29a of Directive 2013/34/EU are

excluded from the numerator of key performance indicators of ﬁnancial undertakings.

Exposures to investments held in respect of life insurance contracts where the investment risk is borne by the policyholders are excluded from the

calculation of the numerator and denominator of all exposure calculations.

The proportion of taxonomy-eligible and taxonomy non-eligible non-life insurance economic activities

in the Triglav Group (mandatory disclosure)

Proportion

Triglav Group

31 December 2022

31 December 2021

Taxonomy eligible non-life insurance economic activities

91%

Taxonomy non-eligible non-life insurance economic activities

The Group’s strategic ambitions in sustainable development (ESG) fully follow the goals adopted in

the context of the Paris Agreement to limit global warming and the European Green Deal on reducing

greenhouse gas emissions by 2030 and reaching carbon neutrality by 2050.

In both strategic activities, insurance and asset management, the Group’s activities will be focused on

the transition to a climate-neutral society and a climate-resilient circular economy. In carrying out its

activities, the Group will promote sustainable economic activity, energy efﬁciency and energy from

renewable sources with an aim to reduce greenhouse gas emissions.

See Section

12.1 Implementation of strategic guidelines and sustainable development goals of the

Triglav Group and Zavarovalnica Triglav

for more information.

SASB FN-IN-410a.2

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‘Insure Our Future’ with partnerships for sustainable development

In early 2022, in cooperation with over

160 partners – our sponsored parties,

the

Insure Our Future

project was launched

live on streaming channels. The project aims

to raise awareness about the United Nations

Sustainable Development Goals (SDGs).

Our employees, followers of our sponsored

parties, clients and other users of our

communication channels are encouraged to

commit to implementing them. The existing

collaboration was upgraded into a joint

partnership for sustainable development,

taking on an ambassadorial role in raising

awareness about global development

challenges and sustainable living.

Informing clients

The Company informs clients in a professional and transparent manner,

enabling them easy access to all the necessary information about the

Company’s products and services. The Company aims to ensure that its

insurance and other general terms and conditions are fair and transparent

and that clients are treated in a proper and equal manner. Furthermore,

the Company complies with special requirements with regard to client

information when concluding ﬁnancial and insurance contracts remotely.

Any complaint, which may be ﬁled in various ways, is resolved quickly

according to the prescribed procedures. The Company complies with the

guidelines of supervisory bodies and carefully implements its policy of

management and control of insurance services and products and their

distribution.

As regards advertising, the newest communication guidelines are followed,

without using any misleading, aggressive, insulting, shocking or other

inappropriate practices. The Company is guided by ethical principles,

cultivates its brand reputation and applies the recommendations of

the Slovene Consumers’ Association for improving ﬁnancial literacy. No

proceedings for violations related to marketing communication were

initiated against Zavarovalnica Triglav and its subsidiaries in 2022.

Availability of services

By expanding and constantly upgrading our digital solutions, clients are

provided with easily accessible products and services and a simple way of

doing business. See Section

11. Development activities

for more information

about improvements and numerous activities.



Communication objectives:

Toll-free telephone numbers are available for

the Company’s services (general information and technical assistance:

080 555 555,

info@triglav.si

; and assistance services: 080 2864 in

Slovenia, 080 2222 2864 abroad). The toll-free telephone number 080

2664 of Triglav, Zdravstvena zavarovalnica, is available for information on

health insurance, and the toll-free telephone number 080 1019 of Triglav

Skladi is available for information on investment solutions. Call centres

also operate in Croatia, Serbia and North Macedonia. Additional dialogue

was created for the digital assistant (chatbot) and support topics for

clients were expanded.



The DRAJV mobile application:

The milestone marking 1 billion

kilometres being driven in total was surpassed. The upgraded application

now uses a driving assessment algorithm, allows multiple vehicles to be

added to user accounts (a car, motorhome, motorcycle), motorcycle rides

to be recorded and also offers a custom way of claiming discounts on

12.4 Social aspects

12.4.1 Responsibility to clients

In client relations, the Company pursues the

principles of simplicity and transparency and

responds quickly and effectively to clients’ needs,

thereby building mutual trust. A lot of effort

is invested in good long-term relationships,

monitoring developments in the insurance

markets, determining the requirements and

needs of clients, and professionally and properly

addressing their comments. On this basis, the

Company improves its business models and

processes, and develops new products, services

and ecosystems. Client focus is also achieved

using new marketing approaches at all levels.

By developing digital solutions, the Company

aims to improve the clients’ user experience;

furthermore, it strengthens its relationships

through direct communication via insurance

agents (see Section

11. Development activities

for more information). The focus is on keeping

clients informed about insurance products

and protecting their personal data and rights.

Ensuring quality and thus client satisfaction is

governed by rules, protocols and instructions.

An integral part of developing insurance products

are procedures set up for approving and testing

products before they are sold or distributed. Each

product must meet clients’ needs and goals in its

lifetime and correspond to their characteristics.

The adequacy of distribution strategies is checked

and tested on an ongoing basis. When any

deviations are identiﬁed, the respective product

or its distribution is appropriately adjusted.

GRI 3-3

GRI 3-3, 417-1, 417-2, 417-3, SASB: FN-IN-270a.1, FN-IN-270a.4,

FN-AC-270a.2, FN-AC-270a.3

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motorcycle insurance. The application is used by more than 60,000 drivers per month, who recorded

over 11 million journeys in 2022 (up by 36% relative to the previous year) and drove more than

275 million kilometres. By driving safely, users are rewarded with a discount when taking out motor

vehicle insurance or insurance for young drivers and receive a discount on motorcycle insurance.



The Triglav Vreme mobile application:

The application provides reliable weather information and

forecasts. The data are provided by the Slovenian Environment Agency.



Websites of Group companies:

With the technological, content and design upgrade of the websites

of subsidiaries outside Slovenia and Triglav Skladi, the user experience was uniﬁed and their visibility

boosted with a uniform digital identity, i.e. corporate visual identity (see Section

11.2 Transformation

and digitalisation



Mobile appraisal units in the event of mass claims:

In the affected areas, mobile appraisal units were

set up for a quick and prompt damage assessment. In 2022, eight mobile appraisal units were set

up after six major and several small hailstorms in Slovenia, which carried out a total of over 4,000

appraisals of damaged vehicles.



An application for inspection of the object insured:

Remote inspection is possible using a client’s

smartphone, a drone and 360° cameras, as well as by capturing data using OCR technology. Damage

reporting and inspection procedures are therefore simpler and faster.



Many new features have been added to claim settlement:

the possibility of reporting claims online

for liability insurance claims, paperless claim reporting at claim reporting counters, the upgraded

Mobilni zastopnik

(Mobile Agent) mobile application, the centralisation of claim settlement

according to the “report and repair” procedure, the possibility to report motor vehicle legal

protection insurance claims at SK+ service centres, the establishment of a call centre to assist clients

in reporting and inspecting damage, the launch of assistance for pets, the possibility of electronic

document signing for clients in the claim settlement process.



The Triglav Skladi mobile application

and

Moj račun

(My Account) online application

: The two

upgraded applications with automated input of professional topics and advice for prudent asset

management enable comprehensive online service and the remote management of mutual funds

and investment solutions.



Remote consultation with a doctor under the Zdravstveni nasvet (Medical Advice) insurance

product:

Clients can consult with a specialist doctor by telephone or video call.



A safe driving simulator at Triglav Lab:

Young drivers can take a practical driving test on a simulator

to obtain a discount when concluding a young driver’s insurance policy. They can also get a discount

by attending a safe driving workshop.

The DRAJV mobile app is used by more than 60,000 users a month.



The i.triglav mobile application:

By upgrading the application, a wider range of services was made

available to smart device users. Clients can sort out most things related to insurance contracts

in one place and access the Company’s other services (taking out or renewing insurance policies,

reporting a claim and monitoring the status of their claim, ordering assistance, reviewing details

of insurance and beneﬁts, etc.). The mobile application allows clients to check the balance of their

savings at Triglav Skladi and the balance of their life and pension insurance assets. In the i.triglav

digital ofﬁce, the processes related to taking out insurance and making additional premium

payments were upgraded, and communication with employers was enabled in the i.triglav Poslovni

(Business) application.

Access to insurance services for people with various disabilities

Zavarovalnica Triglav: improving the services provided to persons with disabilities and ensuring their social integration



A total of 70% of the Company’s points of sale provide independent access to people with different types of disabilities.

In 2022, disability-friendly restroom facilities were built at Dunajska cesta 22 in Ljubljana, and during the renovation of

the Vič representative ofﬁce, automatic sliding doors were installed for easier access.



100% of the points of sale are equipped with aids for partially sighted persons.



100% of the regional units’ head ofﬁces are ﬁtted with FM devices for hard-of-hearing persons.



Awareness about the needs of people with disabilities is raised in cooperation with the Sports Federation for the

Disabled of Slovenia and the Vozim Institute, as well as through volunteer work of employees at school sports days.

GRI G4-FS14

Sustainable development at the Triglav Group

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Accounting Report

115

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

12.4.1.1 Client satisfaction

Client satisfaction is monitored by measuring

and researching clients’ experience. The results

obtained are helpful not only in improving services

but also in designing employee training, upgrading

claim applications and monitoring sales.

In 2022, client satisfaction measurement

according to the Net Promotor Score (NPS)

methodology was expanded to include additional

contact points in subsidiaries. Satisfaction with

assistance services began to be measured in

subsidiaries in Croatia, Bosnia and Herzegovina

and Montenegro, as well as satisfaction with

underwriting and paying out claims in Bosnia and

Herzegovina. NPS measurement is performed in

all markets where the Group operates, expanding

the number of companies included.

The NPS of the Group and the Company reached

the highest levels ever.

The Triglav Group’s NPS

in 2022 was 77, up by four points compared to

the previous year, while

Zavarovalnica Triglav’s

NPS

was 76, up by three points. This is mainly

a result of improved satisfaction with taking out

insurance, which grew by ﬁve percentage points.

Clients once again expressed their greatest

satisfaction with assistance services, where the

NPS increased by two points (88).

Any negative client experiences are dealt

with very carefully. The automated recording

and sending of client comments about their

experiences with the Company will be integrated

into the CRM platform in 2023. Employees are

informed about the satisfaction measurement

results, and based on the ﬁndings, internal

processes and services are further improved.

Client satisfaction with

healthcare service

providers

is measured at the

Zdravstvena točka

health information ofﬁce. Scores always exceed

target values. All clients who left negative

feedback are contacted. The range of products

and services is adapted based on feedback

received, which is also communicated to partner

healthcare service providers. The best rated

partner healthcare service providers are awarded

awards of excellence, and the

Ambassador of

Excellence

award is given to the providers who

were awarded ﬁve years in a row.

asset management

, a recognisable brand

was built and client satisfaction was improved

through active and targeted tailoring of the

product range. Clients were addressed via various

marketing channels, our presence on social

networks and the use of digital platforms were

strengthened, a call centre was set up and client

satisfaction measurement according to the NPS

methodology was established.

Insurance companies outside Slovenia continued

to perform activities aimed at increasing client

satisfaction. When implementing solutions,

they take into account the parent company’s

experiences as well as business digitalisation

trends and needs in the region.

In addition to NPS measurement, client feedback

is obtained through an anonymous survey when

reporting a claim, mail and electronic complaints,

responses on various social networks and own

websites, as well as directly from agents in the

ﬁeld. A book of complaints and compliments is

available

at points of sale

, which are also recorded

in an application. No such complaints were

recorded in 2022 (4 compliments were received).

Complaints and compliments

are regularly

monitored and analysed. Individual complaints are

monitored and managed with effective software.

The complaint handling rules deﬁne the individual

stages of the complaints procedure and the duties

of the responsible persons. Once a year, a report

on the handling of complaints and compliments

is drawn up and presented to the Company’s

management. It also speciﬁes measures to improve

the complaints procedure and processes. The

Company ensures that clients are transparently

informed about the complaints procedure, both

with appropriate explanations in the insurance

documentation and on the Company’s websites,

where they can ﬁnd all information related to the

effective handling of complaints.

In 2022, Zavarovalnica Triglav received 3,429

complaints (compared to 3,335 complaints in

2021), most of which related to non-life insurance

claims (91%), followed by complaints related to

life insurance claims (6%), life insurance (2%) and

non-life insurance (1%). Less than one percent

of complaints were related to subrogations

and other matters. Complaints are classiﬁed

into substantive and general complaints and

complaints relating to personal data protection.

Substantive complains in which clients express

their dissatisfaction with the handling of their

claims are the most common (94%). Of all

complaints received, two-thirds were unfounded,

11% were founded and 17% were partly founded.

Apart from that, 52 compliments were received,

mainly from employees, agents, technicians

and appraisers. In the Group members outside

Slovenia, complaints are handled in accordance

with complaint committee’s rules; records are

kept in the prescribed form, mostly digital.

The client retention rate

in Zavarovalnica Triglav

in 2022 was 92.9% Together with the new clients

acquired this year, the total number increased by

8.6%.

The

rate of complaints

in relation to the

number of claims at Zavarovalnica Triglav and

Triglav, pokojninska družba was 1.22% compared

to 1.30% in 2021.

12.4.1.2 Assessment of effectiveness

and market research

Marketing and communication campaigns are

monitored by researching visibility, likeability

and what affects clients’ understanding and

purchasing decisions. EEG-based neurometry

and eye tracking are used to monitor emotional

perception and response to certain TV ads.

When developing, upgrading and consolidating

products and services, measurements are used

to check the suitability of services, bundles

and the potential use of mobile applications,

in addition to the mystery shopping method

and using focus groups for new underwriting

applications and products.

In Montenegro, a full-day event with activities for children and a concert was held for clients using

the My Home service.

GRI 2-25

SASB: FN-IN-270.3

SASB: FN-IN-270a.1

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Building on brand strength

by incorporating a new

value promise

All stakeholders in all markets are involved in

repositioning the brand and renewing the

value promise. The branding process

is managed by Zavarovalnica Triglav’s

Marketing Communication Department.

Tjaša Kolenc Filipčič

: “We are building on the

implementation of our mission and business

development, where, with new business

models and services, we are focusing even

more on the changed needs of clients and

their user experience.”

The purchasing habits of consumers are

monitored with quantitative research of factors

that affect purchasing (All insurance), which takes

place in the entire insurance market and provides

insight into end consumer habits. An in-house

report on measuring contractors’ satisfaction is

drawn up twice a year, identifying measures for

improvement.

Zavarovalnica Triglav is

one of the most reputable

brands

in the Slovenian market and ranks

among top ﬁve brands in terms of reputation in

markets outside Slovenia. The Group members

are recognised as reputable companies with

a distinctive, transparent style of communication

with their clients. The Group is known well for its

comprehensive range of insurance products and

efﬁcient claim settlement, including the payment

of indemnities and beneﬁts. It has the best

corporate image in Slovenia, where Zavarovalnica

Triglav is considered one of the best companies

in Slovenia and contributes positively to the

development of the local community; in other

markets, the Group is still growing its image.

Brand management and

marketing communication

For effective brand positioning and communication,

a new Triglav brand strategy

is being developed.

It covers three aspects – the company’s corporate

brand, product brand and employer brand, and the

Triglav brand identity, which is built based on its

new personality archetype.

The reputation of the Triglav brand and the Triglav

Group, clients’ loyalty and relationships with them

are built using an in-depth knowledge of clients’

needs and examining trends. Brand strength is

increased by applying comprehensive branding at

corporate (i.e. at Group level) and product levels

(i.e. at the level of individual products, product

groups and services). In addition, brand identity is

implemented on all target markets.

In the

non-life insurance segment

, the focus was

on building the visibility of the upgraded Triglav

komplet loyalty programme, which includes

subsidiaries’ insurance products. The interest in

agricultural insurance, insurance for motorcyclists

and tractor operators,

Pazi name!

(Watch Out

for Me!) accident insurance, travel insurance,

insurance for young drivers and DRAJV challenges

was actively promoted.

In the

life insurance segment

, the focus was on

an integrated approach that comprehensively

addressed several target groups. In cooperation

with top sport climber Janja Garnbret, the whole

life insurance campaign was carried out.

In the

asset management segment

, due to

the situation related to the war in Ukraine, an

online information centre was set up to provide

expert explanation regarding the safety of

invested assets.

In the

health insurance segment

, a new long-term

360-degree communication, content and sales

campaign was designed, focusing on the message

“Your partner in health” and the Company’s

position as a reliable organiser of healthcare

and assistance services, as well as on additional

health insurance products.

12.4.1.3 Awards and

acknowledgements received

Awards and acknowledgments of

the Triglav Group in 2022



WEBSI 2022:

Triglav Skladi was

ranked second in the Corporate Social

Responsibility Projects category for

its Wholehearted Woods project.



TOP investor in education:

Zavarovalnica Triglav was awarded

a certiﬁcate for systematic investment

in employee education and training.



Top manager

and

Top Funds 2022

selected by the Moje ﬁnance

magazine:

Mitja Baša from Triglav Skladi

received an award for the best mutual fund

manager, and the winning mutual funds

were: for the three-year period (2019–2021)

Triglav Money Market EUR in the Money

Market – Euro category, Triglav Top Brands in

the Equity Global category and Triglav Asia in

the Equity Asia – Oceania category, which was

also awarded the highest score for the ten-

year period (2012–2021).



European Agency for Safety and Health

at Work (EU-OSHA):

Zavarovalnica Triglav

was recognised for effective prevention

and management of work-related

musculoskeletal disorders.



Recognition for occupational safety and

health:

Zavarovalnica Triglav received

a national award for its Protecting Health

programme by the Ministry of Labour, Family,

Social Affairs and Equal Opportunities in the

context of the Healthy Workplaces Good

Practice Awards 2020–2022 competition.



IADA:

The 2021 Annual Report of the Triglav

Group and the parent company received gold

awards in the following categories: Overall

Presentation (online version), Home Page

Design (PDF version) and Infographic (PDF

version).



Arc Awards:

The 2021 Annual Report of

the Triglav Group and the parent company

received gold awards in the following

categories: PDF Version of Annual Report,

Design/Graphics and Photography/Video. In

addition, the annual report was the grand

winner in the Best of Eastern Europe category.



Gold Quill:

The 2020 Annual Report of

the Triglav Group and parent company

received two awards from the International

Association of Business Communicators (IABC)

– for excellence in strategic communication

and for an integrated online approach with

effective and imaginative use of online tools.



Best Annual Report:

Two awards for the best

annual report in the Communication and

Sustainable Development categories for 2021

selected by the Finance business daily.



Reputable Employer:

Zavarovalnica Triglav

received the title of

Reputable Employer 2021

in the insurance sector for the fourth time in

a row.



Recognition for spreading a family-friendly

company culture:

Special thanks for spreading

a family-friendly company culture to

Zavarovalnica Triglav, which has been a holder

of the Family-Friendly Enterprise Certiﬁcate

since 2012.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

12.4.2 Responsibility to

employees

Strategic employee management

guidelines and the recruitment policy



The Company acquires, develops and retains

the best employees, as well as improves

selection processes. Standardised employee

management processes are introduced

within the Group by implementing minimum

standards and transferring good practices.



A uniform organisational culture is being

created at Group level based on constructive

behaviour, teamwork, initiative, responsibility

and cooperation. The employer brand

is systematically redesigned in order to

strengthen the Company’s reputation.

Mobility within individual companies and

between Group companies is promoted.

Onboarding mentoring for new hires and

development mentoring for promising

employees are carried out, in addition to

fostering intergenerational cooperation.



Employees’ know-how is being upgraded in all

areas of work and the competencies necessary

for the effective achievement of individuals’

goals are developed on an ongoing basis. In

2022, the main competency – ﬂexibility was

strengthened at Group level.



The development of key and promising

employees and leaders is an ongoing

process. Zavarovalnica Triglav’s leadership

license encourages leaders to continuously

improve their knowledge and upgrade their

leadership skills.



Employee satisfaction and commitment are

a priority, which is monitored using an annual

ORVI survey.



Modern, hybrid forms of work are being

implemented that will enable employees to

work more ﬂexibly and efﬁciently, facilitate

networking and cooperation, and improve

their work-life balance.



At the Triglav Group, the main modules were

integrated into the Gecko HRM HR information

system, and by the end of 2023 development

modules will be fully implemented.

12.4.2.1 Recruitment and employee

structure

The Triglav Group had 5,306 employees as at

31 December 2022, up by 42 over the preceding

year. The number of employees increased the

most due to new hires at the Serbian insurer,

Triglav, Zdravstvena zavarovalnica and the

Macedonian life insurer.

The number of Triglav Group employees

as at 31 December 2022

2020

2021

2022

5,306

5,264

5,316

The majority, i.e. 88.3%, of all employees worked

in the insurance activity, up by 0.5 percentage

point compared to 2021. The share of employees

in asset management activity increased by

0.1 percentage point, whereas in other activities

it decreased by 0.6 percentage point.

Employees by Triglav Group activity as at 31 December 2022

Employees by Triglav Group market as at 31 December 2022

Insurance: 88.3%

Asset management: 2.4%

Other: 9.3%

Slovenia: 51.2%

Serbia: 15.1%

Bosnia and Herzegovina: 10.9%

Croatia: 10.4%

Montenegro: 7.0%

North Macedonia: 5.5%

A total of 51.2% of all Group employees are employed in Slovenia, down by 0.2 percentage point relative

to the preceding year. The share of employees in Serbia increased the most, by 0.6 percentage point.

GRI 3-3

GRI 2-7

Sustainable development at the Triglav Group

Business Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Proportion of employees at the Triglav Group

with at least level VI education according to

the Bologna Process study programmes as at

31 December 2022

2020

2021

2022

56.4%

57.7%

58.5%

Employees at the Triglav Group and Zavarovalnica Triglav by type of employment (full-time, part-time) as at 31 December 2022

Triglav Group

Zavarovalnica Triglav

2022

2021

2020

2022

2021

2020

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Type of employment

Part-time

241

4.5

221

4.2

251

4.7

3.3

3.4

Full-time

5,065

95.5

5,043

95.8

5,065

95.3

2,169

96.7

2,172

96.7

2,167

96.6

Total

5,306

100.0

5,264

100.0

5,316

100.0

2,243

100.0

2,246

100.0

2,244

100.0

Type of employment agreement

Fixed-term

607

11.4

624

11.9

779

14.7

1.5

1.8

2.2

Permanent

4,699

88.6

4,640

88.1

4,537

85.3

2,210

98.5

2,205

98.2

2,195

97.8

Total

5,306

100.0

5,264

100.0

5,316

100.0

2,243

100.0

2,246

100.0

2,244

100.0

The turnover rate

at Group level fell to 11.6% (compared to 13.2% in 2021) and rose to 5.3% at

Zavarovalnica Triglav (compared to 4.1% in 2021). A total of 615 employees left in 2022; most leavers

were aged over 56 years (due to retirement) and 36–40 years. A total of 652 new employees were hired;

most new hires were aged between 26 and 35 years.

The average age

of employees in the Group rose slightly to 44.80 years (compared to 44.67 years

in 2021); at the parent company it was 46.74 years (compared to 46.55 years in 2021). The average

age of Zavarovalnica Triglav’s Management Board members was 48.50 years.

In Slovenia, senior

management is hired from the local community, as is the majority of senior management in the

markets outside Slovenia.

The proportion of women

among all employees increased both at the Company and in the Group,

where it reached 54.7%. The proportion of women among the members of the Management Board

of Zavarovalnica Triglav was 25.0%, and in the management and supervisory bodies of all Group

companies it stood at 23.6%.

In all employee categories, activities and countries where the Group

operates, the

basic salary of men and women is equal

Gender representation by various categories at the Triglav Group and Zavarovalnica Triglav as at 31 December 2022 (%)

Share in %

Index

Triglav Group

2022

2021

2020

2022/2021

2021/2020

Women employees to total employees ratio

54.7

53.9

53.5

102

101

Proportion of women at the ﬁrst management level under the Management Board

45.1

45.3

45.8

100

Proportion of women at ﬁrst and second management levels under the Management Board

41.2

42.0

42.1

100

Proportion of women in management and supervisory bodies

23.6

20.9

20.7

113

101

Proportion of the underrepresented gender in management and supervisory bodies

17.1

17.2

18.2

100

Women in management to women employees ratio

4.9

4.5

5.3

108

Zavarovalnica Triglav

2022

2021

2020

2022/2021

2021/2020

Women employees to total employees ratio

51.1

50.8

50.4

101

Proportion of women on the Management Board of Zavarovalnica Triglav

25.0

33.3

100

Proportion of women on the Supervisory Board of Zavarovalnica Triglav

0.0

Proportion of women at the ﬁrst management level under the Management Board

25.9

100

Proportion of women at ﬁrst and second management levels under the Management Board

40.2

38.8

37.9

104

102

Women in management to women employees ratio

3.5

3.4

100

104

GRI 401-1

GRI 405-1, SASB: FN-AC-330a.1

GRI 202-2

GRI 405-1

GRI 405-2

GRI 405-1, SASB: FN-AC-330a.1

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Employees at the Triglav Group and Zavarovalnica Triglav by age and gender as at 31 December 2022

Triglav Group

Zavarovalnica Triglav

2022

2021

2020

2022

2021

2020

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Age group

From 18 to 19

0.1

0.0

From 20 to 25

127

2.4

125

2.4

138

2.6

1.1

0.9

0.8

From 26 to 30

361

6.8

371

7.0

389

7.3

3.9

4.2

100

4.5

From 31 to 35

555

10.5

569

10.8

588

11.1

191

8.5

194

8.6

191

8.5

From 36 to 40

741

14.0

771

14.6

813

15.3

268

11.9

264

11.8

285

12.7

From 41 to 45

904

17.0

885

16.8

909

17.1

367

16.4

393

17.5

409

18.2

From 46 to 50

940

17.7

882

16.8

852

16.0

438

19.5

422

18.8

413

18.4

From 51 to 55

828

15.6

821

15.6

803

15.1

446

19.9

455

20.3

451

20.1

56 and over

847

16.0

834

15.8

820

15.4

421

18.8

402

17.9

378

16.8

Total

5,306

100.0

5,264

100.0

5,316

100.0

2,243

100.0

2,246

100.0

2,244

100.0

Gender

Men

2,401

45.3

2,426

46.1

2,472

46.5

1,096

48.9

1,104

49.2

1,114

49.6

Women

2,905

54.7

2,838

53.9

2,844

53.5

1,147

51.1

1,142

50.8

1,130

50.4

Total

5,306

100.0

5,264

100.0

5,316

100.0

2,243

100.0

2,246

100.0

2,244

100.0

A total of 88.5% of Group employees were

employed under the

collective agreement

(compared to 89.3% in 2021) and 89.6% at the

Company (compared to 91.1% in 2021). The remaining 11.5% were

employees with individual agreements.

Beneﬁts are the same for all

employees, be it permanent full-time employees, ﬁxed-term employees or

part-time employees.

The Company does not employ any employees without a guaranteed

minimum or ﬁxed number of working hours.

In accordance with the law,

30 natural persons were employed at the Company under a work contract

in 2022.

12.4.2.2 Employee training and development

The Group’s strategic guidelines are implemented also by pursuing an

educational policy, thereby ensuring the employees’ expertise, sustainable

business, digitalisation and an outstanding user experience.

Particular attention is paid to training leaders, promising employees,

in-house mentors, sales staff and employees in the claim segment.

Employees from all Group companies and employees at external points of

sale are included in training. A variety of educational topics are available to

employees. At the parent company, the focus was again on insurance topics,

sales training and business communication.

Most training sessions at Group level (67%) were held online (webinars and

e-learning). In addition to regular training, the following took place:



Specialised in-house training

of 70 employees. A total of 62 Triglav

employees attended the Spring School to obtain new knowledge and

skills (45 of them participated remotely).



New educational topics were made available to

leaders

in the context

of the leadership license, which is gradually being transferred to Group

companies. In spring,

the Conference for Leaders

was held for the leaders

at the parent company, and

the Effective Leadership and Communication

programme

was offered to the management bodies of subsidiaries.



New hires were included in

the Triglav Guide

programme, provided

with onboarding mentoring and traineeships and participated in

creative workshops.



A new group of employees who took on the role of sales ambassadors

participated in

the Triglav Ambassadors

programme to exchange

knowledge, skills and experience of the best insurance agents.



A total of 118 insurance agents and 30 sales

clerks attended

the Sales Academy

, while

all heads of sale continued with the Sales

Management Academy programme.



The compulsory training of

20 teaching hours

to maintain

a licence to conduct insurance

agency business

was held for 1,216 employees

at the parent company.



Training of the Group’s

16 new in-house

coaches

commenced, who will provide

coaching for leaders and promising employees.

There are a total of 58 in-house coaches.



A total of

9 expert meetings

were held for

employees from subsidiaries, who also

participated in other

in-house training

sessions

; a total of 9,982 training hours were

held for employees of subsidiaries. Special

attention was paid to the internal transfer of

knowledge, as 61% of in-house training was

carried out by employees, i.e. in-house trainers.



In cooperation with the IEDC – Bled School

of Management, promising employees were

given the opportunity to participate in

the

Integrative Approach to Business

educational

programme. The TIBA Alumni event was

held with its main theme dedicated to

understanding

the VUCA world



In the context of online training for

employees

at external points of sale

, topics about

insurance products and consumer protection

were at the forefront.

The total number of functional training hours

at Group level rose by 8%. Employees at Group

level participated in 33 training hours on average

(index 107) and 51 training hours at the Company

(index 110), most in the age group up to 30 years.

At the Company, men participated in training on

average two hours more than women.

GRI 405-1

GRI 2-30

GRI 401-2

GRI 2-7

GRI 2-8

GRI 3-3

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The average number of functional

training hours at Zavarovalnica Triglav

in 2022 by gender

Men

Women

Total

The Group’s training costs

amounted to

EUR 2.4 million (compared to EUR 1.8 million

in 2021), as the number of training hours in

traditional form and related costs increased.

Employees are encouraged to continue their

formal education.

Work study

was funded for

137 Group employees and

scholarships

were

provided to 48 pupils and students.

Obligatory

work placement

was provided to 67 pupils and

students. The Company partnered with schools

and faculties to transfer practical knowledge and

experience to young people. A total of 22 young

employees completed

traineeship

under the

guidance of mentors.

Management by objectives and

development of competences

The management-by-objectives system is

implemented by all Group insurance companies

and some Slovenian non-insurance companies.

A total of 49% of all Group employees and 71%

of the parent company’s employees are included.

Employees’ performance is monitored and

rewarded on a quarterly basis; their objectives are

set together with their supervisor in an annual

development interview (the top-down approach).

Due to the nature of their work, agents and heads

of sales teams who are rewarded on the basis of

sales targets are excluded from the management-

by-objectives system.

The competency model

, which is integrated

into annual development interviews, identiﬁes

competency proﬁles and development

activities of each employee. The development

of employees’ competencies is systematically

planned based on the performance of tasks and

duties as well as the current and anticipated

development opportunities and requirements.

The competencies and development potential

of employees in some Group members are

assessed using the

DNLA

(Discovery of Natural

Latent Abilities)

tool

. It is also used in training

of leaders at Group most insurance companies

and in the recruitment process at Zavarovalnica

Triglav, Pozavarovalnica Triglav Re and Triglav

Osiguranje, Belgrade.

12.4.2.3 Occupational health and safety

Zavarovalnica Triglav takes a comprehensive

approach to ensuring occupational health and

safety. In order to manage and reduce risks

to the lowest possible level, the Company

fully complies with sectoral legislation

(identiﬁcation of risks and hazards and their

management), promotes occupational health

(Triglav.smo –

Zavarujmo zdravje

(Protecting

Health) health promotion programme), provides

personal protective equipment, appropriate

working conditions and ergonomic workplace

arrangement, raises employees’ awareness and

educates them. Various activities take place in

the context of the Family-Friendly Enterprise

Certiﬁcate, additionally contributing to greater

satisfaction and better health of employees.

Occupational health and safety system

The comprehensive approach is transferred from

the parent company to other Group companies

by establishing common minimum occupational

health and safety standards and by strictly

complying with local legislation. In this regard,

the aim is to identify, mitigate and manage risks

arising from duties and the work environment.

Occupational safety and health

is organised in

accordance with the legislation and ensures the

smooth provision of a healthy work environment

for the employees.

The Safety Statement and Risk Assessment

for

job categories

includes an assessment of

hazards and harmful effects which could impact

the health of employees. Measures for their

prevention and reduction are also speciﬁed.

As part of this continuous process, in which

employees actively participate, assessments are

revised and measures upgraded on an ongoing

basis. Health risk assessments are revised in

cooperation with occupational health specialists.

Based on the assessment, employees are referred

to periodic medical examinations and every new

hire is required to undergo a statutory medical

examination before taking up employment.

Participation in training and passing a test

ﬁre safety and occupational health and

safety

are mandatory for employees. At

Zavarovalnica Triglav

, employees are made

aware of these topics via various communication

channels, the

Insure Our Future

(

Zavarujmo

zdravje

) health promotion programme, the

measures related to the full Family-Friendly

Enterprise Certiﬁcate and the

Triglav.smo

programme. Best practices are implemented

at Group level.

Health promotion

Health promotion is carried out with regard

to the most common health problems that

are perceived among employees based on

anonymous reports of occupational medicine.

Employees are able to participate in the

Health

Days

(

Dnevi zdravja

) four-day preventive health

programme, which has been attended by more

than 550 employees over the past four years.

Useful topics are communicated via in-house

media, at training sessions, with e-Campus topics

and at the series of

the Healthy Mind in a Healthy

Body

workshops. On World Mental Health Day,

a well-attended event titled

Seeking Help is Brave

was held in cooperation with Triglav, Zdravstvena

zavarovalnica. At the event, renowned Slovenian

experts spoke about when, how and why it is

important to seek help when faced with mental

distress.

In 2022, the parent company received

important national and European award

in health

protection, which is reported in greater detail in

Section

12.4.1.3 Awards and acknowledgements

Zavarovalnica Triglav received the Healthy Workplaces Good Practice Award at an award ceremony

held in San Sebastian.

GRI 404-1

GRI 404-3

GRI 3-3, SDG 8.8

GRI 403-1, 403-2, 403-3, 403-4, 403-5, 403-8

GRI 403-6

Sustainable development at the Triglav Group

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

A survey on the promotion of health, employees’ well-being and experiences in the working

environment was conducted at the parent company. Every year, together with an authorised

occupational medicine specialist, an analysis of sick leave in the previous calendar year is made, which

is then used as a guideline in planning appropriate activities in protecting employees’ health and

preventing the risks of sick leave due to health issues.

Care for occupational health and safety is

promoted among clients

through insurance products. Anyone

(employer) wishing to conclude group accident insurance can only do so if they fulﬁl the requirements

relating to occupational health and safety.

The crisis team, set up in the parent company when

the COVID-19 pandemic

was declared, drew up

work instructions, regulated the organisation of work and issued up-to-date information regarding

measures and the epidemic situation in Slovenia in order to ensure business continuity and safety at

work. Employees were provided with protective equipment and rapid antigen (HAG) tests for self-

testing, and the online mailbox for reporting infections remained active. The Company was subject to

43 inspections regarding the implementation of measures to prevent the spread of infectious diseases

and compliance with the recovered/vaccinated/tested rule in 2022.

Fire safety

A plan on emergency response and actions in the case of an emergency and other security events

is in

place at Group level. In the case of an emergency or event that poses a security threat, employees can

call the security control centre, where they will receive appropriate instructions. The Company regularly

improves ﬁre safety, monitors its compliance with legislative requirements and provides for training and

education of employees; security patrols, inspections of buildings and premises and evacuation drills are

carried out according to the annual plan. In 2022, 8 ﬁre risk assessments and 5 ﬁre safety inspections

were carried out, with no major irregularities identiﬁed.

Occupational health and safety topics covered in formal agreements with trade

unions and in the collective agreement

Safe working conditions at the parent company are deﬁned in accordance with Zavarovalnica Triglav’s

collective agreement and the applicable legislation, while the subsidiaries adhere to the applicable

local legislation. Before starting their work, employees are familiarised with the risks at work and work

safety measures that they are obligated to follow. Employees are provided with the prescribed work

equipment and personal protective equipment, and periodic medical examinations are carried out in

line with the timeline and scope foreseen for individual job categories.

Injuries at work at the Triglav Group and Zavarovalnica Triglav

Injuries at work

The number of accidents remains low; at Group level their number increased to 20 in 2022, while at the

parent company it decreased to 4.

2022

2021

2020

Index

Triglav Group

Number

Percentage

Number

Percentage

Number

Percentage

2022/2021

2021/2020

At work

70.0

76.9

63.6

140

143

On business trips

30.0

23.1

36.4

200

Total

100.0

154

118

2022

2021

2020

Index

Zavarovalnica

Triglav

Number

Percentage

Number

Percentage

Number

Percentage

2022/2021

2021/2020

At work

25.0

57.1

25.0

400

On business trips

75.0

42.9

75.0

100

Total

100.0

175

The number of lost work days at Group level rose due to the higher number of injuries at work, while in

the parent company this was a result of longer absences from work.

Lost work days and lost time incident rate due to injuries at work at the Triglav Group and

Zavarovalnica Triglav

Index

2022

2021

2020

2021/2020

2020/2019

Triglav Group

Lost work days due to work-related injuries

1,279

543

289

236

188

Lost time incident rate – LTIR*

0.37

0.24

0.21

155

113

Zavarovalnica Triglav

Lost work days due to work-related injuries

578

321

180

328

Lost time incident rate – LTIR*

0.18

0.31

0.17

175

* The number of work-related incidents/total number of hours of all employees x 200,000

Each injury which would render an employee unﬁt for work for more than three working days, each

dangerous occurrence and each established occupational disease must be reported to the Labour

Inspectorate of the Republic of Slovenia. The Company recorded two dangerous occurrences (also 2 in

2021) and no occupational diseases in 2022.

GRI 403-4

GRI 403-9

GRI 403-10

Sustainable development at the Triglav Group

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Absenteeism

At Group level, the absenteeism rate was 5.04

and was 0.30 percentage point higher than in

2021. The share of absenteeism for which sickness

beneﬁts are borne by the employer increased

by 0.14 percentage point (medical leave up to

30 days),while the share of lost work days for

which beneﬁts are borne by other organisations

increased by 0.16 percentage point (medical leave

longer than 30 days, sick nursing, accompanying

a sick person). The absenteeism rate at the

Company was also higher and stood at 5.86%

(compared to 5.13% in 2021). As a result, the share

of work days lost borne by the employer rose by

0.18 percentage point and the share of work days

lost borne by the Health Insurance Institute of

Slovenia increased by 0.55 percentage point.

12.4.2.4 Care for employee satisfaction

Organisational vitality (climate) and

organisational culture

The results of the

organisational vitality survey

(ORVI)

, which measures employee satisfaction,

remained at the same high level in 2022 as the

year before. The ORVI index was

4.00

Group

level

and

4.05

the parent company

. A total

of 86% of employees from 17 Group companies

participated in the survey (compared to 87%

from 15 companies in 2021). The aggregate ORVI

index is composed of the indicators (indices)

for work environment, systems, operational

management, personal view and engagement,

which are further classiﬁed into ten categories.

The indicators for

operational leadership

and

engagement

recorded the highest values.

Employees also remain

highly committed

and active

. Their satisfaction with regular

employment, working time, co-workers and direct

supervisors were also rated high.

Interpersonal

relationships and cooperation

within the

organisation remain at a level similar to last

Results of organisational vitality (ORVI) of the Triglav Group in 2022

ORVI Index

4.00

0.00

E: Engagement

4.14

+0.01

Response

85.6

-1.43

E1: Commitment

and

activation

E2: Energy and

trust in

the company

4.34

0.00

3.94

0.00

D: Personal

view

4.10

C: Operational

leadership

4.15

+0.01

C1: Direct

leadership

4.17

+0.02

C2: Justice of

leaders

4.13

+0.02

D1: Empowerment

D2: Satisfaction

4.20

+0.02

3.99

0.00

A: Work

environment

3.95

-0.02

B: Systems

3.64

-0.01

B1: Remuneration

and

promotion

B2: Information

and

cooperation

3.23

-0.03

4.06

+0.01

A1:

Reputation

and

attitude

A2:

Relationships

and personal

development

4.06

-0.03

3.85

0.00

+0.01

year, with employees cooperating more with

employees from other Group companies. Triglav

employees are

proud

to be part of the Triglav

Group (score 4.33) and are satisﬁed with the

beneﬁts

offered by employment in the Group;

there is a sense of

security and equal treatment

at the workplace.

The change in the behavioural styles of the

organisational culture

was measured in 2021;

based on the results, a number of activities

were implemented.

Beneﬁts and opportunities for

employees

The

Triglav.smo

overarching programme is

designed to improve the satisfaction of the

Company’s employees, bringing together

various workshops and events to strengthen

the awareness and knowledge of all important

aspects of our lives. To a lesser extent, these

activities also take place in other Group

companies. The programme includes taking care

of employees’ children by organising holiday

camps and traditionally giving gifts to children at

the end of the year. In 2022, a charity drive was

carried out to raise money for the treatment of an

employee’s child. All Triglav Group employees are

included in the Greeting the Seasons events.

The two in-house experts, who offer individual

psychological counselling to employees as

part of

the Psychological Pulse

group at

Zavarovalnica Triglav, conducted 99 interviews in

2022, almost more than double than in 2021.

GRI 403-9

GRI 2-29

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123

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The

Family-Friendly Enterprise

Certiﬁcate facilitates better work-life balance of employees at the parent

company, depending on the needs they have in different life situations or age periods. The Company

has been the holder of the full Family-Friendly Enterprise Certiﬁcate since 2012. In 2022, extraordinary

working from home was added to the beneﬁts: in exceptional health-related cases, employees may

work from home for up to 30 days. Based on good practices, the aim is to promote similar conduct in

the Group subsidiaries and gradually set as uniform standards as possible.

Additional beneﬁts for employees:



supplemental pension insurance for 59% of employees of the Triglav Group and for 95% of

employees of the parent company;



payment of group accident insurance premium;



favourable conditions for taking out complementary accident insurance for employees and their

family members;



complementary accident insurance for all business trips;



after one year of employment in the parent company, employees may opt for supplemental

voluntary pension insurance and voluntary pension insurance;



the group insurance package Comprehensive Medical Care (Celostna zdravstvena oskrba – CZO), in

which 50% of all employees of the Group and 83% of the parent company are included.

The Group members operating outside Slovenia provide beneﬁts to their employees such as

supplemental voluntary pension insurance premium, discounts on medical examinations, the payment

of accident insurance premium and discounts on other types of insurance.

Work from home, parental leave and part-time work

At Zavarovalnica Triglav and some Group companies, employees whose nature of work allows it may

work from home. At the 2022 year-end, 33% of Group employees and 63% of Company employees had

this option available to them. .

Proportion of employees who worked from home and proportion of hours of working from home in

the Triglav Group and Zavarovalnica Triglav in 2022

Triglav Group

Zavarovalnica Triglav

Number of employees allowed to work from home

1,757

1,412

Proportion of employees allowed to work from home

33.1

63.0

Number of hours of working from home

634,846

437,583

Proportion of hours of working from home

5.9

9.7

Circumstance and work requirements permitting, working hours can be adapted to the needs and

wishes of employees. Employees who are parents of ﬁrst graders can take advantage of a day’s paid

leave on the ﬁrst school day. Employees can take unpaid leave in certain cases and in agreement with

their supervisors.

Parental leave or part-time work at the Triglav Group and Zavarovalnica Triglav in 2022

Triglav Group

Women

Men

Total

Maternity leave, child care leave

164

166

Paternity leave of 20 days

Paternity leave of 75 days (up to the child's age of three years)

Option of part-time working

Number of employees who returned to work after maternity leave in the reporting year

Return rate after parental leave

56%

100%

57%

Zavarovalnica Triglav

Women

Men

Total

Maternity leave, child care leave

Paternity leave of 20 days

Paternity leave of 75 days (up to the child's age of three years)

Option of part-time working

Number of employees who returned to work after maternity leave in the reporting year

Return rate after parental leave

96%

100%

96%

Relationships among employees and management, trade union activities

The employees exercise their management rights in line with the Worker Participation in Management

Act and based on the agreement on worker participation in the management of Zavarovalnica Triglav.

The Act sets out in greater detail the manner of exercising the rights referred to in said Act and lays

down other rights and the manner of workers’ participation in management, which is both individual

and collective. Two representative trade unions and the Works Council are active in the Company. The

Company concluded a special agreement and cooperates well with both. Before adoption, any document

relating to the organisation of work or laying down the obligations that workers must be aware of to

fulﬁl their contractual and other obligations is submitted to both trade unions to give their opinion.

Respecting the workers’ rights and human rights

Any reported or detected suspected violation is dealt with according to a predetermined procedure,

in which professionalism, conﬁdentiality and protection of the reporting person are guaranteed.

The Triglav Group Code

deﬁnes the ethical principles of its operations, including respect for human

rights, which is based on respect for and protection of internationally recognised human rights and

fundamental freedoms. The Group creates a stimulating work environment that respects and protects

the dignity and integrity of employees at the workplace, regardless of any personal circumstances

or afﬁliation.

In addition to the Code, insurance companies outside Slovenia take into account local legislation. These

companies have internal resolution mechanisms in place, and reporting of Code violations takes place in

the context of compliance. Each report and identity of the reporting person (whistleblower) are treated

conﬁdentially. The reporting person is protected from any retaliatory action and is given an opportunity

to informally resolve the issue.

GRI 401-2, 201-3

GRI 401-3

GRI 3-3, 402-1

GRI 2-23, 2-24, 2-25, 3-3

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Potential discrimination and unwanted conduct at Zavarovalnica Triglav are additionally governed by

the Rules on the protection of workers’ dignity at work. The rules set out the manner of recognising,

preventing and eliminating the consequences of discrimination, sexual and other harassment and

workplace mobbing. In accordance with the rules, a conﬁdant and their deputy are also appointed with

the consent of the Works Council. Employees can report a suspected violation of rights to the conﬁdant

or their deputy, who then initiates proceedings to resolve the case, if possible, at the earliest stage. If

the conﬂict cannot be resolved at this stage, a mediator is included in its resolution or a hearing before

the competent committee is held.

In 2022, three reports of inadmissible conduct were received in Zavarovalnica Triglav, which the

conﬁdant dealt with in accordance with the rules. In one case, no violations were identiﬁed, and the

conﬁdant concluded the proceedings with a report. Two reports are still pending, as they were made at

the end of the year.

The Company incorporated its

commitment to respect human rights in business operations

into its

business processes. With it, as the Group’s parent company, the Company committed itself to respecting

human rights throughout the entire business process and to avoiding and preventing possible negative

impacts on ensuring human rights. Due diligence of respect for human rights is carried out on a regular

basis as part of risk assessment in compliance, human resources and procurement.

Economic value distributed of the Triglav Group

Index

2022

2021

2020

2021/2020

2020/2019

Economic value generated

1,403.1

1,378.8

1,274.9

102

108

Economic value distributed

1,351.1

1,281.8

1,179.2

105

109

Net claims incurred and other

insurance expenses

658.7

856.8

814.3

105

Expenses from ﬁnancial assets

196.8

27.6

36.7

714

Other expenses

34.0

24.8

22.9

137

108

Operating expenses

160.9

135.8

119.4

118

114

Dividend payments

84.0

38.6

0.0

218

Tax expense (income tax expense)

24.3

19.7

17.2

124

114

Community investments

(prevention activities, donations,

sponsorships)

10.2

8.8

8.0

116

111

Employee wages, allowances

and beneﬁts

182.0

169.7

160.7

107

106

Economic value retained

52.0

96.9

95.7

101

12.4.3 Responsibility to community

Through its business operations, the Group can directly or indirectly inﬂuence society. It aims to make

a positive contribution to economic development, improving the quality of life of employees and their

families, as well as the local community and society in general. In partnership with its stakeholders, the

Group provides support to sports, cultural, educational, environmental and health activities.

The volume of generated assets distributed among various stakeholders of the Group is shown by

economic value distributed. In 2022, it increased to EUR 1,351.1 million (index 105) predominantly due

to higher dividend payments and an increase in expenses from ﬁnancial assets.

The Group’s responsibility to the community

is fulﬁlled primarily through investments in prevention,

sponsorships and donations, as well as investments in infrastructure at national and local levels, which

are presented below. Their content is deﬁned based on:



sponsorships and donor partnerships and participation in investments in prevention;



the needs identiﬁed in local environments by the Group’s companies and business units;



direct contact with local communities;



performance analyses, especially risks and claims experience, published data of specialised

organisations and institutions;



market research and public opinion polls.

As part of the Children of Triglav corporate social responsibility project, new children's playground

equipment was installed in Mežica

GRI 406-1

GRI 3-3

GRI 201-1, 203-1. The data on donations for 2021 and 2020 changed due to the revised methodology.

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12.4.3.1 Investment in prevention

Prevention programmes are an important social aspect of sustainable impacts of the insurance industry,

as they reduce risks and are also prescribed by law. The volume of investment in prevention has

increased over the last three years, both at Group level and the parent company.

The bulk of funds was allocated to

improving trafﬁc, ﬁre and health safety

In cooperation with AMZS, 150 drivers over the age of 60 took a refresher course. Due to high interest,

the project was continued and another 500 drivers were invited to participate.

Funds allocated to preventive activities of

the Triglav Group and Zavarovalnica Triglav

in EUR million

2020

Triglav Group

Zavarovalnica Triglav

2021

2022

3.4

3.5

4.1

3.1

2.9

2.8

The share of the Triglav Group’s and Zavarovalnica Triglav’s funds for preventive activities

by purpose in 2022

Triglav Group

Zavarovalnica Triglav

Traffic safety

Fire safety

Health

Agricultural

prevention

Education

Intruder detection

Environment

protection

0.8%

0.9%

2.8%

3.4%

4.6%

4.1%

3.5%

5.2%

9.7%

12.3%

13.4%

13.1%

64.4%

61.8%

Prevention projects

Prevention projects are mainly directed at the groups of people and natural environments most at

risk. In line with demographic trends, the number of elderly drivers is increasing, and they are among

those more exposed to the risk of being involved in a trafﬁc accident. To this end, for the fourth year

running, could the Company offers them the chance to improve their driving skills and knowledge of

trafﬁc regulations as part of the

Refresher Ride with a Driving Instructor for the Elderly

campaign. For

motorcyclists, another more at risk group of drivers, the

DRAJV

safe driving application was upgraded.

Support was provided to a total of 98 ﬁre brigades and associations. To prevent accidents and ﬁres in the

mountains, cooperation was strengthened with the Mountain Rescue Association of Slovenia, the Alpine

Association of Slovenia, the Avalanche Warning Institute, the Triglav National Park Public Institute and

the Kranjska Gora Mountain Rescue Society and a dangerous high-mountain trail was rebuilt.

GRI 3-3, 201-1, 203-1

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High proﬁle and comprehensive prevention projects of the Triglav Group in Slovenia in 2022 by area

Health prevention and safety at work

Impact

Assistance in the event of a sudden cardiac arrest



Co-ﬁnancing or purchase of 18 deﬁbrillators for local communities (184 in 9 years). Co-ﬁnancing of training sessions in using a deﬁbrillator.

Prevention and early detection of disease and mental health



9 meetings and other events on physical and mental health were held at the Triglav Lab.



The Najdi.se project was set up (in cooperation with the Vozim Institute) to promote and protect mental health among young people.



6 workshops for parents (in cooperation with the Vozim Institute) were held on alcohol- and cannabis-related issues, attended by 482 parents.



Support was provided to 10 Hrastnik Social Work Centre workshops for parents on the mental and physical health of young people.



Support was provided to the Slovenian Urological Patients Association in the Movember 2022 campaign.

Training in ﬁrst aid response



Co-ﬁnancing of ﬁrst aid training – the purchase of QCPR manikins for demonstration and CPR training.

Purchase of medical and therapeutic equipment



Purchase and co-ﬁnancing of devices such as a mobile X-ray, a medical recliner for the elderly and a therapeutic chair for physically challenged students.



Purchase of oximeters and infant warmers for 5 Slovenian maternity hospitals.

Prevention of accidents at work, partner: the Slovenian Forest Service



Financing a chainsaw safety course for forest owners.

Trafﬁc safety

Impact

Refresher ride with a driving instructor for the elderly, partner: AMZS



A total of 150 drivers over the age of 60 attended a two-stage refresher course in driving knowledge and skills (driving in the city and at the safe driving

centre) and 300 drivers attended a city driving course.



In the four years of implementing this campaign, more than 640 experienced drivers have taken a refresher course with a driving instructor. The course

focused on roundabouts, speed and keeping a suitable safety distance.

Vozimse.si – a road trafﬁc prevention portal, partners: AMZS and Atmosferci



A total of 51,535 online tests were taken to refresh drivers’ knowledge of road trafﬁc regulations.



Raising awareness of safe driving with videos on driving and working with tractors, autonomous and electric vehicles.

The Together for Road Safety project, partners: Sipronika and Zavod Vozim

(I’m Driving Institute)



12 new speed display signs in local communities, at high-risk road sections and in the vicinity of schools and kindergartens were set up, 92 in total over seven

years.



Under the mentorship of the Vozim Institute, students from schools with displays were researching speeding and submitted proposals to their

municipalities to reduce speed in their settlements.

Together for Road Safety project, partner: COPS system



10 new COPS@zebra and COPS@road systems were installed in Slovenia at points with the greatest risk of trafﬁc accidents (over 70 in total).

Interactive workshops for secondary school students “I still drive but I no longer walk”, partners:

Zavod Vozim (I’m Driving Institute) and Sipronika



At 208 workshops in person or online, 10,386 young people listened to personal stories of trafﬁc accident victims and became acquainted with the DRAJV

safe driving application.



330 young people researched the inﬂuence of speed on impact load and braking distance at 117 specialised workshops.



380 young people attended the Alcohol=Change of Life workshop.

The safety of preschool children and ﬁrst graders in road trafﬁc, partner:

the Slovenian Trafﬁc Safety Agency



21,000 ﬁrst graders received yellow safety neckerchiefs.



The Kuža Pazi (Watch Out Doggy) road safety mascot visited 45 elementary schools to promote being cautious.

Training events and topics for motorcyclists



The day of free prevention and ﬁrst aid workshops for motorcyclists (attended by more than 2,000 motorcyclists in eight years).



A conference on motorcyclists’ behavioural risks entitled “Anatomy of a Motorcyclist’s Ride”.



Presentation at the event about driving motorcycles of up to 125 cubic centimetres safely (analysis of data from the DRAJV application).

A training workshop on driving with tractors and tractor trailers, partner: AMZS,

Vransko Safe Driving Centre



More than 300 tractor drivers attended the workshop on safe driving with tractors (more than 500 tractor drivers in three years, including many young tractor

drivers).

The DRAJV safe driving application



The data from the DRAJV application were used to analyse and plan preventive measures and to select locations for the installation of speed display signs.

The application was upgraded so as to promote the safe driving of motorcyclists.

Promotion of forming an emergency lane on motorways, partner: Zavod Reševalni pas

(Emergency Lane Institute)



Sharing videos about the problems of ambulances on an emergency call.

Young drivers



A subpage for young drivers “Mission: pass your driver’s test and be a safe driver” was set up on the Vozimse.si portal.



In cooperation with gamers Žiga Lah (ScorpLZ) and Jaka Krčovnik (Jack on the Box) and psychologist Anja Ćorić, an event was held for young drivers, at

which the topic of having a fear of driving was discussed.

Being Safe on a Bike, partners: Butan plin, Slovenian Trafﬁc Safety Agency,

National Education Institute of Slovenia



More than 10,000 students (from over 100 schools) took part in cycling education about sustainable mobility, trafﬁc regulations and active leisure time.

Fire prevention

Impact

Care for greater ﬁre safety in mountain huts, partners: the Alpine Association of Slovenia and

the Fire Fighting Association of Slovenia, Bonpet



30 mountain huts were equipped with automatic ﬁre extinguishing ampoules and ﬁre extinguishers (115 mountain huts in three years).



Support was provided to the construction of a new mountain hut on Okrešelj as a model of a modern ﬁre-safe mountain hut.

Purchase of ﬁre protection equipment, partners ﬁre services, associations and brigades



Co-ﬁnanced purchase of protective equipment, ﬁre-ﬁghting equipment and ﬁre engines as well as investments in ﬁre stations for 98 volunteer ﬁre

brigades and associations.

Financing of training and competitive activities of ﬁreﬁghters, partners: Fire Fighting

Association of Slovenia and Instructor 112



The main sponsorship of the Fireﬁghting Olympics in Celje.



Co-ﬁnanced three-day Heavy Rescue training course for ﬁreﬁghters in the event of major accidents, attended by 250 volunteer and professional

ﬁreﬁghters from seven countries.



In cooperation with the Atmosferci group, video content warning of the risk of battery ﬁres was regularly posted on the Vozimse.si portal.

Protection of the natural environment

Impact

Safe return – prevention of bird strikes, partner: the Society of Knowledge and Values of Nature



Studying the coexistence of birds and airplanes in Slovenia and researching bird strike prevention techniques.

The sustainable development of pond banks, partner: the Brdo Public Utility Institute



Support for sustainable development of the bank of the pond in the Brdo pri Kranju park.

Sustainable visiting of Triglav National Park, partner: the Triglav National Park Public Institute



Co-organisation of an expert meeting and an open day at the Triglav Lab.



The results of the analysis of driving with the Triglav application in terms of trafﬁc congestion and speeding will serve as the basis to design measures to

reduce motorised trafﬁc in Triglav National Park.

Long-term conservation of protected wetlands, partner: the Wetland Research Society, Slovenia



Survey of 60 wetlands in the Julian Alps.

Study and conservation of dolphins, partner: Morigenos – Slovenian Marine Mammal Society



Initiation of the development of a research and education centre about dolphins in Piran.

Protection of indigenous marine species, partner: the Jesenice Fishing Family



Co-ﬁnancing the construction of a centre for the breeding of indigenous marine species in Jesenice.

Keeping mountain trails well-maintained and safe, partner: the Alpine Association of Slovenia



Support in arranging mountain trails from Gorjanci to Kočevski rog as part of Trailblazers’ Day.



Support for restoring the challenging mountain trail to Koroška Rinka.

Sustainable visit to the mountains, partners: the Alpine Association of Slovenia and AMZS



Support for the Green Mountain Trail project to promote the sustainable choice of mountain locations, thereby contributing to less populated peaks.

SDG 3.6

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In the context of this year’s traditional New Year’s prevention campaign

Za boljši jutri (For a better

tomorrow)

, 26 prevention projects were supported in Slovenian local communities. Funds were

allocated to ﬁreﬁghters, healthcare, civil protection, counselling in the ﬁeld of children’s mental health,

institutions for users with special needs and elementary schools. Over 230 preventive projects were

supported over nine years.

As part of the Best Mountain Trail contest, the Company funded the renovation of the Koroška Rinka trail

after it had been closed for several years.

High proﬁle and comprehensive prevention projects of the Triglav Group in the markets outside Slovenia

in 2022 by area

Health prevention

Impact

Prevention of musculoskeletal diseases, partner:

the Basketball Federation of Serbia, Serbia



Organisation of workshops for the prevention of

musculoskeletal diseases in athletes.

Early detection of diseases, partner: the Croatian

Neurological Society, Croatia



Support for the “Links in Neurology” symposium.

Prevention and early detection of disease, partner:

the “Heart for Children with Cancer” Association,

Bosnia and Herzegovina



Financial support for the treatment of children with cancer

and help for their families.

Prevention of accidents in the mountains, partner:

the Mountain Rescue Service of the Federation of BiH,

Bosnia and Herzegovina



Co-ﬁnancing of activities of the Goražde Mountain Rescue

Service.

Protection of the natural environment

Impact

Protection of the natural environment and biodiversity,

partner: Eko Fond Orahovica, Bosnia and Herzegovina



Implementation of environmental and cleanliness drives.

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12.4.3.2 Sponsorships and donations

The Group has uniform guidelines for sponsorships and donor partnerships in place. Attention is paid

that their selection complies with the Company’s business guidelines and brand. In 2022, the amounts

of both sponsorships (index 133) and donations (index 121) were increased.

Funds for sponsorships of the Triglav Group

and Zavarovalnica Triglav in EUR million

2020

Triglav Group

Zavarovalnica Triglav

2021

2022

3.8

4.4

5.1

2.9

2.5

2.4

Funds for donations of the Triglav Group and

Zavarovalnica Triglav in EUR thousand

2020

Triglav Group

Zavarovalnica Triglav

2021

2022

1,073.0

669.4

307.3

886.3

305.8

786.0

Sponsorships of the Triglav Group and Zavarovalnica Triglav in 2022 by content

Triglav Group

Zavarovalnica Triglav

Sustainability

projects

1.8%

2.1%

Health

1.9%

0.2%

Education

2.4%

2.1%

Culture

13.5%

8.9%

Sports

81.9%

85.3%

Donations of the Triglav Group and Zavarovalnica Triglav in 2022 by content

Triglav Group

Zavarovalnica Triglav

Environment

projects

4.8%

7.7%

Sport

4.2%

0.0%

Education

10.8%

8.9%

Health

29.6%

30.5%

Humanitarian projects

51.9%

51.6%

Major sponsorships and donations

Sports sponsorships, the development of young athletes and raising awareness about the importance of

a healthy lifestyle receive the majority of funds. The Group is recognised as a partner of national sports

associations, international sports events and numerous sports clubs in its markets. In 2022, the largest

share of donations was given to humanitarian projects and healthcare.

As part of the New Year's prevention campaign »For a Better Tomorrow«, more than 230 prevention

projects have been supported throughout Slovenia over the past nine years.

GRI 201-1

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Country

Sports sponsorship

Culture

Education and training

Slovenia



Partner of the Ski Association of Slovenia



Golden partner of national teams in biathlon and Nordic skiing



General sponsor of the FIS Ski Flying World Championship in Planica



Sponsor of the Ski Jumping World Cup Ladies (the New Year’s Eve Tour) in Ljubno ob Savinji



Sponsor of the Biathlon World Cup in Pokljuka



Sponsor of the Sports Federation for the disabled of Slovenia



Golden partner of the Football Association of Slovenia and its national teams as well as the ﬁrst women’s and the ﬁrst men’s

football league



Sponsor of the Tennis Association of Slovenia



Golden sponsor of the Table Tennis Association of Slovenia



Sponsor of the Gymnastic Federation of Slovenia



Sponsor of the Canoe Federation of Slovenia



Sponsor of the Olimpija Ice Hockey Club and the Jesenice Ice Hockey Skating Society



Sponsor of the Slovenian Golf Association



Sponsor of the Ice Hockey Federation of Slovenia



Sponsor of the Cedevita Olimpija Basketball Club, the Krka – Telekom Novo mesto Basketball Club and the Domžale Basketball Club



Sponsor of the ACH Volley Ljubljana Volleyball Club and the Merkur Maribor Volleyball Club



General partner of the climbing event Triglav The Rock Ljubljana



Partner of the

Woop! Odbito na Ljubljanici

event



Sponsor of top athletes: Peter, Domen and Cene Prevc, Anamarija Lampič, Ela Nala Milić, Kaja Juvan, Domen Škoﬁc,

Janja Garnbret, Nataša Robnik, Miha Dovžan, Vid Vrhovnik, Aljaž Sladič, Nika Radišić, Špela Rogelj, Nika Križnar, Taja Bodlaj,

Rok Marguč, Klemen Bauer, Jakov Fak, Katja Pogačar, Žan Košir, Jan Pancar, Tjaša Fifer, Anej Doplihar and Matej Žan.



A series of concerts of Music of the World

in Cankarjev dom



Kinodvor



Ljubljana Puppet Theatre



Slovene Writers’ Association



Ljubljana Festival



Ljubljana Castle



Lent Festival



National Museum of Slovenia



Arsana Festival



Beletrina



Modern Gallery



Festival RUTA Triglav Group –

a regional festival



Mountain Rescue Association of Slovenia:

Staying Safe in the Mountains



Managers’ Association of Slovenia



Slovenian Society for Dog Assisted

Therapy Tačke Pomagačke

(Helping Little Paws)



Maritime Law Association



American Chamber of Commerce in

Slovenia (AmCham Slovenia)

Croatia



Croatian Basketball Association



Croatia Open Umag



General sponsor of the Adriatic Water Polo League



Wine of Dalmatia Association

Montenegro



Podgorica Basketball Club



AS Tennis Club



Budučnost VOLI Basketball Club



Budučnost Female Handball Club



ALL STAR Basketball Club



Podgorica Millennium Run



Water Polo and Swimming Federation of Montenegro



Budva Theatre Festival



EYCA international programme for

young peoplE

North Macedonia



Vardar Handball Club



Vardar Female Handball Club



Alkaloid Handball Club



Support of rally driver Igor Stefanovski



Support of young tennis player Vesna Jovanova



Handball Federation of North Macedonia



Basketball Federation of North Macedonia



Kraft produkcija Festival



AETM

Bosnia and Herzegovina



Female Play Off Sarajevo Basketball Club



Sarajevo Ski Club



Bosna Visoko Handball Club



Vitez Minifootball Club



Čelik Zenica Football Club



Jajce Handball Club



Support to SPARS 05 Youth Basketball Club

Serbia



General sponsor of the Basketball Federation of Serbia and the Serbian male national team



Crvena zvezda Volleyball Club



Judo Federation of Serbia



Borac Basketball Club



Vojvodina Basketball Club



Golf Association of Vojvodina



Support for the judoka Nemanja Majdov



Manasija Knights Festival



Cultural manifestation –

Oplenačka berba

Some major sponsorships of the Triglav Group in 2022

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Triglav Lab’s activities

Many events, workshops and training sessions in prevention, ﬁnancial literacy and cooperation with

athletes are held at the Triglav Lab technology centre. In 2022, 75 on-site and online events were held,

of which 42 were educational, 18 in the ﬁeld of preventive healthcare, 10 for business and awareness

purposes and 5 related to the Company’s products. The main topics of the virtual events were ﬁre

and ﬂood safety and dog care and health, while the virtual events on the topic of health were held in

cooperation with Triglav Zdravje. As part of the POMNI project, screening tests for dementia took place

in the premises of Triglav Lab (over several months), in addition to providing consulting for hemato-

oncology patients. In the context of the summer ﬁnance school, young people attended a lecture on

ﬁnancial literacy (Triglav Skladi in partnership with Moje Finance magazine).

Everything Will Be Alright Institute

Zavarovalnica Triglav’s

Zavod Vse bo v redu

(Everything Will Be Alright Institute) carries out socially

responsible activities aimed at providing help and support to the socially disadvantaged as well as

implements preventive activities. Key projects in 2022 included:



The Help Ukraine project

In the Slovenian companies of the Triglav Group, a charity drive was carried out to raise funds for

refugees from Ukraine staying in Slovenia. The Group’s employees, together with donations from

Group companies, raised EUR 310.7 thousand.



Cooperation with the Slovenian Forest Service

The Everything Will Be Alright Institute signed an agreement on long-term cooperation in the Green

Heart of the Karst project, with which the Triglav Group joined the project of Karst reforestation after

the ﬁre in 2022. The ﬁrst large-scale campaign took place in November at the Cerje Monument of Peace.

A total of 50 employees and other volunteers from Slovenia and abroad planted saplings.

As part of the collaboration with the Slovenian Forest Service, support was provided for the

renovation of the Charcoal Forest Nature Trail in Dole pri Litiji, which is considered the heart of the

Charcoal-Making Region.



Prevention activities aimed at preventing loss events

The Company participated as

a partner in the Alcohol-Free for 40 Days campaign

for the seventh year in

a row, which promotes a healthy and sober lifestyle among the general public, including drivers.



Support to young talents – the Young Hopes project

The year 2022 was the tenth anniversary of the Young Hopes social responsibility project, providing

support to talented young athletes, para-athletes, artists and scientists. This time, an open call was

published in the spring. An expert jury selected 13 young and successful ﬁnalists aged between 16

and 20. In cooperation with Pro Plus media company, EUR 50,000 was allocated to the development

of talented young people and the achievement of their goals. In ten years, 127 young people were

Young Hopes 2022.

Information on corporate social responsibility partnerships:

Zavarovalnica Triglav, d.d., Ljubljana

Miklošičeva cesta 19, 1000 Ljubljana

Email:

sponzorstva@triglav.si

supported with a total of over half a million euros. The project ended with a gala event at the Ljubljana

Castle, where diplomas were awarded to the last two generations of young people.

The recipients of ﬁnancial support from the past ﬁve years were invited to apply to receive sponsorship

funds from Zavarovalnica Triglav and which enabled them to receive even longer-term support. In

addition, alumni meetings with lectures were held, focusing on safety, obstacles, tips and knowledge

that young people need when they become young drivers.

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12.4.4 Responsibility to suppliers

Procurement practices

The Company uses a

standardised software solution

for procurement, which increases the transparency

of procurement procedures and reduces the operational risks of non-compliance with good business

practices. The procurement procedures above a certain amount (above EUR 10,000) are performed

by the Strategic Sourcing Department, which is responsible for coordination and communication

between the relevant departments in need of procurement and suppliers. With the new electronic form

implemented in 2022, the preparation of initial information for starting the procurement procedure

was simpliﬁed.

Only veriﬁed suppliers who meet the

legal compliance

criteria can participate in procurement

procedures.

The supplier compliance assessment

assesses the risks of corrupt practices, conﬂicts of

interest and political exposure, while

the business sustainability assessment

is used to assess respect

for human rights, provision of a safe and healthy work environment for employees and other workers,

compliance with Slovenian legislation and international human rights documents and environmental

legislation requirements. Based on these criteria, new suppliers are assessed in the selection process,

while existing suppliers are assessed once a year. In 2022, additional criteria were added to the

sustainable development form.

Locally-oriented procurement

The Company selects its suppliers mostly on the Slovenian market; the share of suppliers based outside

the local market is less than 10%. Market trends in key procurement groups, such as IT, property

management, general procurement, intellectual services, marketing, labour and general affairs, are

regularly monitored. The Company seeks offers outside the local market when it is economically feasible

or there is no comparable supplier in the market for the goods or services in demand.

The Group companies also carry out most of their procurement in local markets by complying with

the common minimum procurement standards. Where possible and reasonable, some of the same

types of materials, raw materials and services are procured centrally at Group level at more favourable

purchasing terms and conditions. In 2022, procurement procedures above EUR 25,000 were centralised

for all Slovenian companies and are carried out by the parent company’s Strategic Sourcing Department.

Remuneration of insurance agency companies and sales staff

The Group’s sales network is constantly being expanded with contractors. In 2022 their number

exceeded 1,980

, of which

1,441 were outside Slovenia

. See Section

14. Business network of the Triglav

Group

for further information.

Before signing an agreement with a new contractor, the standardised

selection procedure is carried out, while the business results of existing contractors are regularly

monitored and measures are taken for enhancing cooperation and improving sales.

Non-life insurance

agency companies are rewarded based on the following criteria: exclusivity, written

premium, size of the area of operation, volume of sales of insurance products and fulﬁlment of planned

obligations. When awarding a bonus, the Company takes into account the fulﬁlment of monthly

targets and the renewability and growth of the insurance portfolio. The commission rate of contractors

selling

life insurance

products depends on exclusivity, portfolio balance, client loyalty indicator and

the effectiveness of maintaining the portfolio. Contractors are also rewarded for exceeding the annual

non-life and life insurance sales targets (volume bonus); furthermore, special additional rewards are

made available during the year. The ﬁrst agreement with a new partner is concluded for a ﬁxed term.

Priority is given to exclusive sales, as insurance distributors can offer policyholders a comprehensive

range of products of the Group members.

In Republika Srpska, remuneration regulations were revised. In some countries where the Group

operates, additional incentives were used to promote sale to retail clients. In awarding a bonus, linear

bonus schemes are used, which are upgraded with bonus commissions depending on the value of

insurance policies, ﬁnancial discipline and the claims ratio. Premium rates are universal (regardless

of whether an insurance policy is new or renewed), whereas exclusive partnerships are additionally

rewarded with beneﬁts.

In order to maintain and promote loyalty, contractors may attend training sessions, workshops, and

sales and motivational events, thus gaining new insurance and sales knowledge and skills, which

improves not only relations between contractors and the Company but also client satisfaction.

GRI 2-6, 3-3, 308-1, 414-1

GRI 3-3, 204-1

GRI 2-6

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12.5 Governance aspects

Fair business practices

The Triglav Group adopted

the Triglav Group Code

, which focuses on twelve main ethical principles:



integrity and compliance,



conﬂict of interest management,



prevention of the restriction of competition, unfair competition and unfair business practices,



transparency and comprehensive communication,



respect for human rights,



responsibility to the employees,



a client-centric approach,



responsibility to the business partners and shareholders,



fraud management,



prevention of corruptive actions,



money laundering and terrorist ﬁnancing prevention,



data protection and integrity.

Employees in all Group companies are made aware of and educated about the Code, fostering

adherence to the adopted principles at all levels.

The Code deﬁnes the system for direct reporting of non-compliance, while the procedure for dealing

with internal fraud and violations of the Code is regulated by an internal document. In 2022, the Group

dealt with 14 reports of violations and two cases of suspected internal fraud. No major monetary losses

directly related to the marketing and provision of information on insurance products were identiﬁed.

None of the covered employees were involved in investment-related investigations, consumer

complaints, private civil disputes or other regulatory proceedings.

No monetary losses directly related

to legal proceedings concerning fraud, insider trading, antitrust, anticompetitive behaviour, market

manipulation, abuse or other laws or regulations of the ﬁnancial industry were recorded.

Insurance fraud management

To identify suspected fraud, advanced computer solutions are used that automatically and reliably

detect suspicious cases and are helpful to experienced investigators. Key internal controls for fraud

prevention and detection are also based on advanced technological solutions, which at the same time

measure the effectiveness of fraud management processes.

Systematic training and awareness raising activities on how to identify insurance fraud, particularly with

respect to underwriting and claim settlement, are carried out for all Group employees. In the ﬁght against

fraud, the Company actively works together with other insurers, the Slovenian Insurance Association and

the competent state authorities.

Modern forms of insurance and remote business lead to new types of fraud, which requires systematic

monitoring and adjustment of the Company’s operations.

Reporting and dealing with suspected fraud is regulated by the Group’s Code, while the Rules on dealing

with internal fraud and violations provide a framework for ensuring the protection of the reporting

person’s identity, handling anonymous reports and protection against retaliatory actions. The Rules also

govern

whistleblowing

regulations.

To identify suspected fraud, advanced computer solutions are being used that automatically and reliably

detect suspicious cases and are an additional tool for experienced investigators.

At least one communication channel for reporting violations (an online form, a hotline for reporting fraud

or the email address

prevare@triglav.si

) is available in all insurance and ﬁnancial companies of the Group. In

companies with at least 50 employees, the reporting person can also use an application to report violations,

which is available and accessible on the

www.triglav.eu

website, and thus available to all external

stakeholders. Any unlawful conduct, or an attempt thereof, that is contrary to the values and principles of

the Triglav Group may be reported. Each report is dealt with in accordance with a predetermined procedure;

the bona ﬁde reporting person is protected during the procedure and after its completion.

GRI 2-23, 2-24, 2-25, 2-26, 2-27

GRI 3-3

SASB FN-IN-270a.1

SASB FN-AC-270a.1

SASB FN-AC-510a.1

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Insurance fraud was conﬁrmed in 886 cases out of 1,651 reported cases of suspected fraud in 2022.

Of these, 25 reports of suspected fraud were received from external and internal reporting persons

(whistleblowers), which were conﬁrmed in three cases. The number of conﬁrmed cases of suspected

fraud was 9% higher than in 2021.

Anti-corruption behaviour

The anti-corruption policy sets a minimum standard of conduct in proceedings with an identiﬁed

corruption risk for the Group companies. Mandatory contractual provisions include an anti-corruption

clause, a conﬂict of interest clause and clauses on the protection of human rights, personal data, inside

information and business secrets. Employees are regularly made aware of how to act lawfully, fairly and

transparently and how to respond to identiﬁed irregularities.

In 2022, the Company’s employees attended training sessions on managing conﬂicts of interest and

preventing money laundering and terrorist ﬁnancing for an average of 3 hours. No cases of corrupt

practices were conﬁrmed in the Group.

In line with the Political Parties Act, Zavarovalnica Triglav may not and does not ﬁnance political parties.

Such ﬁnancing and other political activities are also banned by the corruption risk management policy

of the Triglav Group; therefore, neither are carried out by any of its members.

Personal data protection

With regard to

personal data protection

, the Group received four complaints, three of which were found

to be partially grounded. The cases of detected non-compliance were investigated and the internal control

system was updated. No material sanctions due to non-compliance were imposed on the Company. In one

case, a ﬁne was imposed on the person responsible, but the procedure related to the request for judicial

protection is still pending.

On average, the Company’s employees received one hour of training on personal data protection.

Information security and the personal data protection internal control system were upgraded, while

keeping clients informed about the processing of their personal data. Uniform rules for personal data

processing and protection continued to be implemented within Group; they are based on common

minimum standards.

Protection of competition

In its operations, product development and marketing, the Group respects consumer rights and follows

good business practices. When choosing suppliers, it aims for transparency and respects the protected

interests of its competitors. In the Handbook for Consumer and Competition Protection, the rules of

behaviour to competitors have been regulated to avoid the risk of violating regulations and principles of

fair competition. In the markets where the Group holds a dominant position, consumers are advised to

be cautious when taking out insurance and business partners when entering into business relationships.

Proceedings for alleged non-compliance with competition protection rules have been initiated against

a Group subsidiary company; as a result, in the future, the Group will be even more active in drawing

attention to the importance of consumer protection and competition.

Commitments to external initiatives and membership in associations

Zavarovalnica Triglav became a signatory to the United Nations Principles for Sustainable Insurance (UN

PSI) and a member of the global community of banks, insurers and investors joining the United Nations

Environment Programme Finance Initiative (UNEP FI). Also, it is a signatory to the Partnership for Carbon

Accounting Financials (PCAF) initiative.

The main standard of professional business practices is implemented by complying with the Insurance

Code of the Slovenian Insurance Association and other industry codes. The Company is active in the

American Chamber of Commerce, especially in the Corporate Ethics and Transparency Committee and

the Sustainable Growth Committee. As one of the ﬁrst Slovenian companies, it committed itself to

respecting the Declaration on Fair Business Practices. By joining Transparency International Slovenia,

the Company additionally committed itself to developing an anti-corruption culture, and by signing the

Commitment to Respect Human Rights in Business, it supported the implementation of the National

Action Plan of the Republic of Slovenia for Respect for Human Rights in the Economy.

Employees receive regular training on personal data protection and fair business practices.

GRI 419-1, SASB: FN-AC-510a.1, FN-AC-510a.3

GRI 3-3, 205-1, 205-2, 205-3

GRI 415-1

GRI 3-3, 412-2, SDG 16

GRI 419-1, 418-1

GRI 3-3, 206-1

GRI 2-28

Sustainable development at the Triglav Group

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The Company is an active member of the Slovenian Insurance Association and its committees,

the Chamber of Commerce and Industry of Slovenia and other local and interest chambers. It has

representatives in several professional associations, such as the Slovenian Directors’ Association, the

Managers’ Association of Slovenia, the Association of Employers of Slovenia, the European Institute of

Compliance and Ethics, the Slovenian Association of Actuaries and the Institute of Internal Auditors

– IIA Slovenia. Furthermore, representatives of the Company are members of many international

industry and professional associations, particularly in the ﬁelds of ﬁnance, actuaries and compliance.

Subsidiaries are members of industry and professional associations in the countries where they operate

and participate in various committees.

Adjustment to regulatory changes

In 2022, the focus was on standardising the Group’s personal data protection practices. The system for

monitoring and complying with restrictive measures (sanctions) adopted due to the aggression against

Ukraine was upgraded (e.g. the scope of client due diligence was updated and expanded, additional

internal controls and ongoing notiﬁcation of adopted new features were implemented); furthermore,

guidelines for the Group’s subsidiaries operating outside the EU were drawn up.

Procedures were updated in line with the amended law governing the prevention of money laundering

and terrorist ﬁnancing. The guidelines of the European Insurance and Occupational Pensions Authority

in outsourcing cloud services were implemented.

Operations continued to be harmonised with the regulation on sustainability-related disclosures in

the ﬁnancial services sector and the EU Taxonomy, while regularly monitoring legislative changes in

sustainable business. In addition, the implementation of accounting standards IFRS 17 and

IFRS 9 continued.

The deﬁnitions of the target market and the distribution strategy for more complex products were

reviewed and updated in line with the respective EIOPA’s guidelines. Amendments to the Commission

Delegated Regulation (EU) 2017/653 on PRIIPs and the Slovenian Insurance Supervision Agency’s

notices were taken into account in drafting key information documents for products. With respect

to supplemental voluntary pension insurance (SVPI), approvals for changes to guarantee fund

management rules were obtained.

Group subsidiaries adapted to changes and were actively involved in regulatory procedures.

In the countries where EU legislation does not apply, the minimum standards of the parent company

are followed.

GRI 201-4

Government grants and other forms of government assistance

The Triglav Group received EUR 3.1 million (index 116) in grants and other forms of government

assistance in 2022, of which Zavarovalnica Triglav received EUR 2.9 million (index 114). The largest

share of government grants in the Group, 86.5%, was accounted for by reimbursements of labour costs

by the state. Government assistance in the context of aid measures due to unfavourable trends in the

economy (mainly the rise in energy prices) accounted for 6.9%, while incentives for employing speciﬁc

categories of workers accounted for 5.3%. The share of funds obtained in public tenders for co-ﬁnancing

the cost of a particular asset was 1.2%. See Section

5.6 of the Accounting Report

for more information

on government grants.

Information on the Triglav Group as at 31 December 2022

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13.

Information on the Triglav Group as at 31 December 2022

Insurance

Zavarovalnica Triglav d.d.

Address:

Miklošičeva cesta 19, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 474 72 00 , 080 555 555, 080 28 64

Fax:

++ 386 (1) 432 63 02

Email:

info@triglav.si

Website:

www.triglav.si, www.triglav.eu

Triglav, pokojninska družba d.d.

Address:

Dunajska cesta 22, 1000, Ljubljana, Slovenia

Phone:

++ 386 (1) 47 00 840, 080 80 87

Fax:

++ 386 (1) 47 00 853

Email:

info@triglavpokojnine.si

Website:

www.triglavpokojnine.si

Activity:

Pension funds

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 25,756,808/EUR 25,756,808

Pozavarovalnica Triglav Re d.d.

Address:

Miklošičeva cesta 19, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 474 79 00

Fax:

++ 386 (1) 433 14 19

Email:

mail@triglavre.si

Website:

www.triglavre.si

Activity:

Reinsurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 4,950,000/EUR 4,950,000

Triglav, Zdravstvena zavarovalnica d.d.

Address:

Pristaniška ulica 10, 6000 Koper, Slovenia

Phone:

++ 386 (5) 662 20 00, 080 26 64

Fax:

++ 386 (5) 662 20 02

Email:

info@triglavzdravje.si

Website:

www.triglavzdravje.si

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 25,822,144/EUR 25,822,144

Information on the Triglav Group as at 31 December 2022

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Triglav Osiguranje d.d., Zagreb

Address:

Antuna Heinza 4, 10000 Zagreb, Croatia

Phone:

0800 20 20 80

Fax:

++ 385 (1) 563 27 99, 0800 20 20 80

Email:

info@triglav.hr

Website:

www.triglav.hr

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /100.00%

Nominalna vrednost kapitalskega deleža

Zavarovalnice Triglav/Skupine Triglav:

- /EUR 38,060,776

Lovćen Osiguranje a.d., Podgorica

Address:

Ulica slobode 13a, 81000 Podgorica, Montenegro

Phone:

++ 382 (20) 404 404

Fax:

++ 382 (20) 665 281

Email:

info@lo.co.me

Website:

www.lo.co.me

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /99.07%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /99.07%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 10,362,648

Lovćen životna osiguranja a.d., Podgorica

Address:

Ulica Marka Miljanova 29, 81000 Podgorica, Montenegro

Phone:

++ 382 (20) 231 882

Fax:

++ 382 (20) 231 881

Email:

info@lovcenzivot.me

Website:

www.lo.co.me

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /99.07%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /99.07%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 3,665,590

Triglav Osiguranje d.d., Sarajevo

Address:

Dolina 8, 71000 Sarajevo, Bosnia and Herzegovina

Phone:

++ 387 (33) 252 110

Fax:

++ 387 (33) 252 179

Email:

info@triglav.ba

Website:

www.triglav.ba

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /97.78%

Share of voting rights of

Zavarovalnice Triglav/Skupine Triglav pravic:

- /98.87%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 10,620,215

Triglav Osiguranje a.d., Banja Luka

Address:

Ulica Prvog krajiškog korpusa 29, 78000 Banja Luka,

Bosnia and Herzegovina

Phone:

++ 387 (51) 215 262

Fax:

++ 387 (51) 215 262

Email:

info@triglavrs.ba

Website:

www.triglavrs.ba

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 4,777,227

Triglav Osiguranje a.d.o., Belgrade

Address:

Milutina Milankovića 7a, 11070 Novi Beograd, Serbia

Phone:

++ 381 (11) 330 51 00

Fax:

++ 381 (11) 312 24 20

Email:

ofﬁce@triglav.rs

Website:

www.triglav.rs

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /100%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /100%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 19,661,348

Information on the Triglav Group as at 31 December 2022

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Triglav Osiguruvanje a.d., Skopje

Address:

Bulevar 8-mi Septemvri br. 16, 1000 Skopje,

North Macedonia

Phone:

++ 389 (2) 510 22 22

Fax:

++ 389 (2) 510 22 97

Email:

info@triglav.mk

Website:

www.triglav.mk

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /81.69%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /81.69%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 2,457,582

Triglav Osiguruvanje Život a.d., Skopje

Address:

Bulevar 8-mi Septemvri br. 18, 1000 Skopje,

North Macedonia

Phone:

++ 389 (2) 510 22 01

Fax:

++ 389 (2) 510 22 97

Email:

info@triglavzivot.mk

Website:

www.triglavzivot.mk

Activity:

Insurance

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /97.38%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /97.38%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 6,819,115

Triglav Skladi d.o.o.

Address:

Dunajska cesta 20, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 300 73 00, 080 10 19

Fax:

++ 386 (1) 300 73 50

Email:

info@triglavskladi.si

Website:

www.triglavskladi.si

Activity:

Mutual fund management

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 563,345/EUR 563,345

Triglav, Upravljanje nepremičnin d.o.o.

Address:

Dunajska cesta 22, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 47 44 440

Fax:

++ 386 (1) 23 17 785

Email:

info@triglav-upravljanje.si, info-nep@triglav.si

Website:

www.triglav-upravljanje.si

Activity:

Asset management

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 3,160,113/EUR 3,160,113

Trigal, upravljanje naložb in svetovalne storitve d.o.o.

Address:

Dunajska cesta 22, 1000 Ljubljana, Slovenia

Phone:

++ 386 51 317 019, 82 007 348

Email:

info@trigal.com

Website:

www.trigal.com

Activity:

Management of ﬁnancial funds

Equity stake of Zavarovalnica Triglav/the Triglav Group:

49.90%/49.90%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

49.90%/49.90%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 7,331,308/EUR 7,331,308

Asset management

Information on the Triglav Group as at 31 December 2022

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Triglav penzisko društvo a.d., Skopje

Address:

Bulevar 8-mi Septemvri br. 18, 1000 Skopje,

North Macedonia

Phone:

++ 389 (2) 510 21 90

Fax:

++ 389 (2) 510 28 81

Email:

info@triglavpenzisko.mk

Website:

www.triglavpenzisko.mk

Activity:

Pension funds

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 5,356,000/EUR 5,356,000

Triglav Fondovi d.o.o., Sarajevo

Address:

Ul. Mehmed paše Sokolovića br. 15, 71000 Sarajevo,

Bosnia and Herzegovina

Phone:

++387 33 277 270

Fax:

++387 33 277 271

Email:

info@triglavfondovi.ba

Website:

www.triglavfondovi.ba

Activity:

Management of ﬁnancial funds

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /62.54%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /62.54%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 399,704

Triglav INT, holdinška družba d.o.o.

Address:

Dunajska cesta 22, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 430 95 34

Email:

triglavint@triglav-int.si

Website:

www.triglav-int.si

Activity:

Holding company

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 77,180,734/EUR 77,180,734

Triglav Svetovanje, zavarovalno zastopanje d.o.o.

Address:

Ljubljanska cesta 86, 1230 Domžale, Slovenia

Phone:

++ 386 (1) 724 66 50

Email:

info@triglav-svetovanje.si

Website:

www.triglav-svetovanje.si

Activity:

Insurance agency activities

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 8,763/EUR 8,763

Triglav Savetovanje, društvo za zastupanje u osiguranju d.o.o., Belgrade

Address:

Zelengorska 1g, 11070, Belgrade, Serbia

Phone:

++ 381 (1) 165 58 497, 011 655 84 97

Email:

ofﬁce@triglav-savetovanje.rs

Website:

www.triglav-savetovanje.rs

Activity:

Insurance agency activities

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /100%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /100%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 31,305

Other

Information on the Triglav Group as at 31 December 2022

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Triglav Savjetovanje, društvo za zastupanje u osiguranju d.o.o., Sarajevo

Address:

Dolina br. 8, 71000 Sarajevo, Bosnia and Herzegovina

Phone:

++ 387 (3) 361 81 06

Faks:

++ 387 (3) 361 82 95

Email:

info@triglav-savjetovanje.ba

Website:

www.triglav-savjetovanje.ba

Activity:

Insurance agency activities

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /97.78%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /97.78%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 149,983

Triglav zdravje asistenca d.o.o., Ljubljana

Address:

Dunajska cesta 22, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 893 84 40

Email:

info@tza.si

Website:

www.tza.si

Activity:

Other human health activities

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 7,500/EUR 7,500

Diagnostični center Bled d.o.o.

Address:

Pod skalo 4, 4260 Bled, Slovenija

Phone:

++ 386 (4) 579 80 00

Email:

info@dc-bled.si

Spletna stran:

www.dc-bled.si

Activity:

Hospital activities

Equity stake of Zavarovalnica Triglav/the Triglav Group:

50.00%/50.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

50.00%/50.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 189,562/EUR 189,562

Vse bo v redu, zavod Zavarovalnice Triglav za družbeno odgovorne aktivnosti

Address:

Miklošičeva cesta 19, 1000, Ljubljana, Slovenia

Phone:

++386 (1) 47 47 518

Faks:

++386 (1) 47 47 159

Email:

vsebovredu@triglav.si

Spletna stran:

www.vsebovredu.si

Activity:

Humanitarian and charity activities

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Ustanovni vložek Zavarovalnice Triglav/Skupine Triglav:

EUR 100,000/EUR 100,000

Triglav Savjetovanje, društvo za zastupanje u osiguranju d.o.o., Zagreb

Address:

Sarajevska cesta 60, 10000 Zagreb, Croatia

Phone:

++ 385 (1) 344 41 22

Email:

info@triglav-savjetovanje.hr

Website:

www.triglav-savjetovanje.hr

Activity:

Insurance agency activities

Equity stake of Zavarovalnica Triglav/the Triglav Group:

- /100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

- /100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

- /EUR 790,000

Triglav Avtoservis d.o.o.

Address:

Verovškova 60b, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 580 68 80

Fax:

++ 386 (1) 580 68 75

Email:

info@triglav-avtoservis.si

Spletna stran:

www.triglav-avtoservis.si

Activity:

Maintenance and repair of motor vehicle

Equity stake of Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Share of voting rights of

Zavarovalnica Triglav/the Triglav Group:

100.00%/100.00%

Nominal value of equity stake held by

Zavarovalnica Triglav/the Triglav Group:

EUR 43,663/EUR 43,663

Business network of the Triglav Group

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14.

Business network of the Triglav Group



The Group’s well-developed business network was further expanded.

It includes over 1,980 insurance agencies, brokers and banks in the Adria region.

Almost 73% of its contractors operate in markets outside Slovenia.



Sales, after-sales and assistance services, which are provided in

increasingly hybrid forms, are being upgraded with digital, automated and

simpliﬁed processes.

The Triglav Group’s well-developed business network is constantly upgraded. The traditional method

of selling insurance and ﬁnancial services is complemented with a multi-channel approach and hybrid

forms of business, which is made possible by business digitalisation. In 2022, the Group strengthened

its advantages by entering into more strategic partnerships and increasing the number of contract sales

partners and the scope of online and assistance services.

The Group’s insurance sales network is composed of insurance agents, sales clerks and own points of

sale. In 2022, the external sales network in Slovenia comprised 542 partners registered for insurance

agency activities – 469 in non-life insurance and 73 in life insurance. Based on contracts, the Group

also cooperates with roadworthiness test providers, car dealers, leasing companies, banks and travel

agencies with great success. Subsidiaries outside Slovenia also strengthened their own and external sales

networks. In markets outside Slovenia, the Group cooperates with more than 1,440 insurance agencies,

with most partnerships being entered into in Serbia, particularly with vehicle inspection providers.

In 2022, the bank sales channel was strengthened in particular. See Section

12.4

.4 Responsibility to

suppliers, Remuneration of insurance agencies and their sales staff

for more information.

In order to effectively resolve claims, the range of contractors was expanded, communication channels

were upgraded and claims procedures were automated and simpliﬁed. Clients have access to insurance

services also via call centres, where they receive the necessary information; furthermore, clients may

take out insurance, report a claim and request assistance services via the telephone or online.

14.1 Insurance



Zavarovalnica Triglav d.d., Ljubljana, Headquarters – registered ofﬁce

Regional units:



Celje



Koper



Kranj



Krško



Ljubljana



Maribor



Murska Sobota



Nova Gorica



Novo mesto



Postojna



Slovenj Gradec



Trbovlje



Pozavarovalnica Triglav Re d.d., Ljubljana – registered ofﬁce



Triglav Zdravstvena zavarovalnica d.d., Koper – registered ofﬁce

The insurance company has agencies set up in all 12 regional units of Zavarovalnica Triglav and

a health information ofﬁce at its registered ofﬁce.



Triglav, pokojninska družba d.d., Ljubljana – registered ofﬁce

Business network of the Triglav Group

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

Triglav Osiguranje d.d., Zagreb – registered ofﬁce

Branch ofﬁces:



Zagreb



Čakovec



Varaždin



Koprivnica



Osijek



Rijeka



Pula



Split



Lovćen Osiguranje a.d., Podgorica – registered ofﬁce

Branch ofﬁces:



Podgorica



Nikšić



Berane



Pljevlja



Bijelo Polje



Kotor



Bar



Budva



Plužine



Šavnik



Danilovgrad



Cetinje



Ulcinj



Tivat



Rožaje



Herceg Novi



Kolašin



Mojkovac



Triglav Osiguranje d.d., Sarajevo – registered ofﬁce

Branch ofﬁces:



Sarajevo



Novi Grad – Autocentar



Goražde



Kiseljak



Bihać



Ključ



Tuzla



Mostar



Zenica



Travnik



Vitez



Grude



Banja Luka



Ljubuški



Jelah – Tešanj



Čitluk



Široki Brijeg



Novi Travnik



Teočak



Breza



Gračanica



Kakanj



Konjic



Posušje



Livno



Čapljina



Tomislavgrad



Sanski Most



Velika Kladuša



Lukavac



Prozor



Busovača



Triglav Osiguranje a.d.o., Banja Luka – registered ofﬁce

Regional ofﬁces:



Banja Luka



Doboj



Prijedor



Gradiška



Pale



Bijeljina



Triglav Osiguranje a.d.o., Belgrade – registered ofﬁce

Branch ofﬁces:



Belgrade



Novi Sad



Kruševac



Niš



Valjevo



Kikinda



Subotica



Šabac



Kragujevac



Čačak



Jagodina



Vranje



Vršac



Novi Pazar



Užice



Zrenjanin



Pančevo



Bečej



Sremska Mitrovica



Bogatić



Bor



Negotin



Kraljevo



Leskovac



Sombor



Prijepolje



Triglav Osiguruvanje a.d., Skopje – registered ofﬁce

Branch ofﬁces:



Skopje



Bitola



Ohrid



Gostivar



Tetovo



Kumanovo



Veles



Gevgelija



Prilep



Kićevo



Radoviš



Kočani



Štip



Kavadarci



Strumica



Struga



Triglav Osiguruvanje Život a.d., Skopje – registered ofﬁce

Business network of the Triglav Group

Business Report

Risk Management

Accounting Report

142

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

14.2 Asset management



Triglav Skladi d.o.o., Ljubljana – registered ofﬁce



Triglav, Upravljanje nepremičnin d.o.o., Ljubljana – registered ofﬁce



Trigal, upravljanje naložb in svetovalne storitve d.o.o., Ljubljana – registered ofﬁce



Triglav Fondovi d.o.o., Sarajevo – registered ofﬁce



Triglav penzisko društvo a.d., Skopje – registered ofﬁce

14.3 Other



Triglav INT, holdinška družba d.o.o., Ljubljana – registered ofﬁce



Triglav Svetovanje, zavarovalno zastopanje d.o.o., Domžale – registered ofﬁce



Triglavko d.o.o., Ljubljana – registered ofﬁce



Triglav zdravje asistenca d.o.o., Ljubljana – registered ofﬁce



Diagnostični center Bled d.o.o., Bled – registered ofﬁce



Triglav Savjetovanje d.o.o., Zagreb – registered ofﬁce



Triglav Savetovanje d.o.o., Belgrade – registered ofﬁce



Triglav Savjetovanje d.o.o., Sarajevo – registered ofﬁce



Triglav Avtoservis d.o.o., Ljubljana – registered ofﬁce

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

143

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.

Performance indicators of Zavarovalnica Triglav

15.1 Growth of gross written premium (index)

Gross written premium for the current year*100

Gross written premium for the preceding year

in EUR

Gross written premium

Index

No.

2022

2021

2020

2022/2021

2021/2020

6 = 3/4*100

7 = 4/5*100

Accident insurance

25,342,439

25,235,448

25,696,568

100

Health insurance

933,956

787,154

926,557

119

Land motor vehicle insurance

141,497,773

129,298,413

127,536,359

109

101

Railway insurance

5,880,448

4,614,328

4,175,198

127

111

Aircraft insurance

2,546,345

3,683,029

2,390,519

154

Marine insurance

18,083,405

7,689,364

994,760

235

773

Good in transit insurance

7,975,392

6,858,896

5,321,053

116

129

Fire and natural disaster insurance

56,381,966

60,796,633

58,291,995

104

Other damage to property insurance

182,452,894

165,026,243

130,253,821

111

127

Motor TPL insurance

121,932,761

109,621,258

106,754,958

111

103

Aircraft liability insurance

1,557,041

2,779,402

1,693,326

164

Marine liability insurance

1,427,546

1,390,962

950,911

103

146

General liability insurance

48,665,425

42,719,369

38,619,888

114

111

Credit insurance

26,957,217

21,883,872

19,137,654

123

114

Suretyship insurance

4,516,701

3,600,839

2,775,316

125

130

Miscellaneous ﬁnancial loss insurance

3,643,791

2,948,793

2,574,281

124

115

Legal expenses insurance

610,916

595,434

641,309

103

Travel assistance insurance

19,677,421

16,480,055

16,052,704

119

103

Total non-life insurance (No. 1-18)

670,083,437

606,009,493

544,787,178

111

Life insurance

74,655,209

79,238,943

79,466,230

100

Unit-linked life insurance

102,603,969

88,785,604

76,121,938

116

117

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

21,521,009

20,316,064

18,880,523

106

108

Total life insurance (No. 20-22)

198,780,186

188,340,610

174,468,691

106

108

Total (No. 19+23)

868,863,623

794,350,103

719,255,868

109

110

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

144

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.2 Net written premium as % of gross written premium

Net written premium*100

Gross written premium

in EUR

Net written premium

Gross written premium

Net written premium as % of

gross written premium

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Accident insurance

22,882,650

24,111,394

25,342,439

25,235,448

Health insurance

541,171

403,141

933,956

787,154

Land motor vehicle insurance

126,583,283

118,746,789

141,497,773

129,298,413

Railway insurance

3,721,998

3,179,050

5,880,448

4,614,328

Aircraft insurance

1,234,960

512,084

2,546,345

3,683,029

Marine insurance

-756,181

4,049,207

18,083,405

7,689,364

Good in transit insurance

4,865,040

4,377,329

7,975,392

6,858,896

Fire and natural disaster insurance

31,997,468

36,435,356

56,381,966

60,796,633

Other damage to property insurance

85,767,808

70,839,126

182,452,894

165,026,243

Motor TPL insurance

97,665,647

95,758,179

121,932,761

109,621,258

Aircraft liability insurance

984,115

274,980

1,557,041

2,779,402

Marine liability insurance

999,335

1,204,425

1,427,546

1,390,962

General liability insurance

30,369,988

26,327,195

48,665,425

42,719,369

Credit insurance

18,956,530

15,642,754

26,957,217

21,883,872

Suretyship insurance

2,243,640

1,697,484

4,516,701

3,600,839

Miscellaneous ﬁnancial loss insurance

1,713,049

-738,912

3,643,791

2,948,793

Legal expenses insurance

482,797

479,720

610,916

595,434

Travel assistance insurance

17,780,134

15,565,586

19,677,421

16,480,055

Total non-life insurance (No. 1-18)

448,033,432

418,864,887

670,083,437

606,009,493

Life insurance

73,763,948

78,448,515

74,655,209

79,238,943

Unit-linked life insurance

102,568,222

88,750,889

102,603,969

88,785,604

100

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

21,521,009

20,316,064

21,521,009

20,316,064

100

Total life insurance (No. 20-22)

197,853,178

187,515,467

198,780,186

188,340,610

100

Total (No. 19+23)

645,886,610

606,380,354

868,863,623

794,350,103

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

145

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.3 Movements in gross claims paid (index)

Gross claims paid for the current year*100

Gross claims paid for the preceding year

in EUR

Gross claims paid

Index

No.

2022

2021

2020

2022/2021

2021/2020

6 = 3/4*100

7 = 4/5*100

Accident insurance

10,970,662

11,341,654

9,908,838

114

Health insurance

299,364

224,251

415,865

133

Land motor vehicle insurance

87,963,736

73,547,686

75,806,644

120

Railway insurance

937,433

1,351,160

623,235

217

Aircraft insurance

47,179

427,733

44,785

955

Marine insurance

2,536,821

462,437

-12,306

549

Good in transit insurance

2,405,710

1,330,731

1,511,975

181

Fire and natural disaster insurance

17,242,071

18,508,455

19,974,929

Other damage to property insurance

57,656,612

41,729,984

43,758,137

138

Motor TPL insurance

69,979,954

60,644,632

61,408,263

115

Aircraft liability insurance

66,673

4,171

23,398

1,598

Marine liability insurance

296,388

244,093

298,968

121

General liability insurance

10,086,223

9,130,723

14,547,830

110

Credit insurance

8,591,108

9,691,229

12,026,300

Suretyship insurance

363,218

888,227

454,233

196

Miscellaneous ﬁnancial loss insurance

1,183,995

1,485,539

871,232

171

Legal expenses insurance

9,865

8,277

15,000

119

Travel assistance insurance

16,373,498

12,837,972

11,386,584

128

113

Total non-life insurance (No. 1-18)

287,010,510

243,858,953

253,063,910

118

Life insurance

99,226,366

99,811,473

95,631,064

104

Unit-linked life insurance

47,830,664

50,176,608

48,338,150

104

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

5,142,370

4,210,438

4,476,399

122

Total life insurance (No. 20-22)

152,199,401

154,198,520

148,445,613

104

Total (No. 19+23)

439,209,911

398,057,473

401,509,523

110

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

146

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.4 Claims ratio

Gross claims paid*100

Gross written premium

in EUR

Gross claims paid

Gross written premium

Claims ratio (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Accident insurance

10,970,662

11,341,654

25,342,439

25,235,448

Health insurance

299,364

224,251

933,956

787,154

Land motor vehicle insurance

87,963,736

73,547,686

141,497,773

129,298,413

Railway insurance

937,433

1,351,160

5,880,448

4,614,328

Aircraft insurance

47,179

427,733

2,546,345

3,683,029

Marine insurance

2,536,821

462,437

18,083,405

7,689,364

Good in transit insurance

2,405,710

1,330,731

7,975,392

6,858,896

Fire and natural disaster insurance

17,242,071

18,508,455

56,381,966

60,796,633

Other damage to property insurance

57,656,612

41,729,984

182,452,894

165,026,243

Motor TPL insurance

69,979,954

60,644,632

121,932,761

109,621,258

Aircraft liability insurance

66,673

4,171

1,557,041

2,779,402

Marine liability insurance

296,388

244,093

1,427,546

1,390,962

General liability insurance

10,086,223

9,130,723

48,665,425

42,719,369

Credit insurance

8,591,108

9,691,229

26,957,217

21,883,872

Suretyship insurance

363,218

888,227

4,516,701

3,600,839

Miscellaneous ﬁnancial loss insurance

1,183,995

1,485,539

3,643,791

2,948,793

Legal expenses insurance

9,865

8,277

610,916

595,434

Travel assistance insurance

16,373,498

12,837,972

19,677,421

16,480,055

Total non-life insurance (No. 1-18)

287,010,510

243,858,953

670,083,437

606,009,493

Life insurance

99,226,366

99,811,473

74,655,209

79,238,943

133

126

Unit-linked life insurance

47,830,664

50,176,608

102,603,969

88,785,604

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

5,142,370

4,210,438

21,521,009

20,316,064

Total life insurance (No. 20-22)

152,199,401

154,198,520

198,780,186

188,340,610

Total (No. 19+23)

439,209,911

398,057,473

868,863,623

794,350,103

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

147

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.5 Operating expenses as % of gross written premium

Operating expenses*100

Gross written premium

in EUR

Operating expenses

Gross written premium

Operating expenses as % of

gross written premium

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Accident insurance

9,166,396

8,672,975

25,342,439

25,235,448

Health insurance

242,741

230,509

933,956

787,154

Land motor vehicle insurance

37,818,022

34,096,829

141,497,773

129,298,413

Railway insurance

818,888

559,582

5,880,448

4,614,328

Aircraft insurance

194,829

154,791

2,546,345

3,683,029

Marine insurance

2,932,558

822,118

18,083,405

7,689,364

Good in transit insurance

1,623,270

1,422,276

7,975,392

6,858,896

Fire and natural disaster insurance

19,388,387

19,781,204

56,381,966

60,796,633

Other damage to property insurance

38,631,076

32,123,263

182,452,894

165,026,243

Motor TPL insurance

34,467,832

30,362,056

121,932,761

109,621,258

Aircraft liability insurance

191,607

144,705

1,557,041

2,779,402

Marine liability insurance

409,010

341,804

1,427,546

1,390,962

General liability insurance

14,682,730

12,282,912

48,665,425

42,719,369

Credit insurance

6,098,333

5,172,811

26,957,217

21,883,872

Suretyship insurance

936,446

906,404

4,516,701

3,600,839

Miscellaneous ﬁnancial loss insurance

1,013,787

806,297

3,643,791

2,948,793

Legal expenses insurance

463,390

524,741

610,916

595,434

Travel assistance insurance

9,029,782

7,752,097

19,677,421

16,480,055

Total non-life insurance (No. 1-18)

178,109,085

156,157,374

670,083,437

606,009,493

Life insurance

18,448,832

17,535,773

74,655,209

79,238,943

Unit-linked life insurance

21,709,776

18,324,915

102,603,969

88,785,604

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

3,107,286

3,030,016

21,521,009

20,316,064

Total life insurance (No. 20-22)

43,265,894

38,890,703

198,780,186

188,340,610

Total (No. 19+23)

221,374,979

195,048,077

868,863,623

794,350,103

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

148

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.6 Acquisition costs as % of gross written premium

Acquisition costs*100

Gross written premium

in EUR

Acquisition costs

Gross written premium

Acquisition costs as % of

gross written premium

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Accident insurance

1,381,637

1,223,219

25,342,439

25,235,448

5.5

4.8

Health insurance

14,296

8,814

933,956

787,154

1.5

1.1

Land motor vehicle insurance

5,202,715

3,885,870

141,497,773

129,298,413

3.7

3.0

Railway insurance

198,382

48,155

5,880,448

4,614,328

3.4

1.0

Aircraft insurance

13,438

8,031

2,546,345

3,683,029

0.5

0.2

Marine insurance

2,538,661

567,938

18,083,405

7,689,364

14.0

7.4

Good in transit insurance

364,372

387,937

7,975,392

6,858,896

4.6

5.7

Fire and natural disaster insurance

2,580,415

2,356,688

56,381,966

60,796,633

4.6

3.9

Other damage to property insurance

6,271,876

5,168,814

182,452,894

165,026,243

3.4

3.1

Motor TPL insurance

8,896,098

6,052,533

121,932,761

109,621,258

7.3

5.5

Aircraft liability insurance

2,991

2,997

1,557,041

2,779,402

0.2

0.1

Marine liability insurance

108,174

99,227

1,427,546

1,390,962

7.6

7.1

General liability insurance

2,784,138

2,199,986

48,665,425

42,719,369

5.7

5.1

Credit insurance

1,308,473

1,122,319

26,957,217

21,883,872

4.9

5.1

Suretyship insurance

317,100

277,576

4,516,701

3,600,839

7.0

7.7

Miscellaneous ﬁnancial loss insurance

278,372

172,472

3,643,791

2,948,793

7.6

5.8

Legal expenses insurance

161,288

225,651

610,916

595,434

26.4

37.9

Travel assistance insurance

1,094,379

617,728

19,677,421

16,480,055

5.6

3.7

Total non-life insurance (No. 1-18)

33,516,807

24,425,956

670,083,437

606,009,493

5.0

4.0

Life insurance

5,225,617

4,544,110

74,655,209

79,238,943

7.0

5.7

Unit-linked life insurance

6,517,877

5,329,105

102,603,969

88,785,604

6.4

6.0

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

34,409

75,970

21,521,009

20,316,064

0.2

0.4

Total life insurance (No. 20-22)

11,777,903

9,949,186

198,780,186

188,340,610

5.9

5.3

Total (No. 19+23)

45,294,710

34,375,142

868,863,623

794,350,103

5.2

4.3

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

149

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.7 Net claims ratio

(Net claims paid + Change in claims provisions)*100

Net premium income

in EUR

Net claims paid +

Change in claims provisions

Net premium income

Net claims ratio (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Accident insurance

8,523,287

9,121,682

23,069,429

24,183,142

Health insurance

292,541

213,843

537,495

405,936

Land motor vehicle insurance

77,728,698

67,900,878

122,102,052

117,492,243

Railway insurance

2,298,836

859,551

3,757,608

2,532,086

Aircraft insurance

-241,814

184,020

954,383

397,629

Marine insurance

2,711,596

635,964

-103,121

2,962,887

Good in transit insurance

2,116,359

1,346,910

4,887,802

4,308,714

Fire and natural disaster insurance

9,839,683

9,539,011

33,234,442

36,638,740

Other damage to property insurance

31,708,359

34,535,524

78,167,008

68,237,187

Motor TPL insurance

22,419,552

41,872,511

95,153,415

95,040,153

Aircraft liability insurance

-53,745

-35,691

1,082,161

175,361

Marine liability insurance

935,179

258,624

1,021,816

1,072,262

General liability insurance

-3,216,187

6,442,374

28,950,270

26,162,127

Credit insurance

42,323

816,479

17,258,960

14,346,889

Suretyship insurance

-213,149

293,166

1,524,759

1,887,076

Miscellaneous ﬁnancial loss insurance

672,884

693,901

1,388,585

-486,163

Legal expenses insurance

41,032

-32,338

483,039

465,841

Travel assistance insurance

15,126,483

12,092,879

16,350,508

15,400,394

Total non-life insurance (No. 1-18)

170,731,916

186,739,289

429,820,612

411,222,504

Life insurance

97,693,354

101,319,177

92,054,945

97,382,393

106

104

Unit-linked life insurance

47,837,534

50,171,484

84,278,825

69,834,039

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

5,142,370

4,210,438

21,521,009

20,316,063

Total life insurance (No. 20-22)

150,673,259

155,701,100

197,854,778

187,532,496

Total (No. 19+23)

321,405,175

342,440,389

627,675,390

598,755,001

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

150

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.8 Combined claims ratio

15.9 Expense ratio

15.10 Utility ratio

(Net claims paid + Change in claims provisions + Net operating expenses)*100

Net premium income

in EUR

Net claims paid +

Change in claims provisions +

Net operating expenses

Net premium income

Combined claims ratio (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

319,126,063

324,345,168

429,820,613

411,222,504

Operating expenses*100

Net premium income

in EUR

Operating expenses

Net premium income

Expense ratio (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Life insurance

43,265,894

38,890,703

197,854,778

187,532,496

(Claims paid + Change in insurance technical provisions)*100

Net written premium

in EUR

Claims paid +

Change in insurance technical provisions

Net written premium

Utility ratio (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Life insurance

55,518,856

235,795,772

197,853,178

187,515,467

126

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

151

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.11 Investment return as % of average balance of investments

Investment return*100

(starting balance for the year + ending balance for the year)/2

in EUR

Investment return

Average balance of investments

Investment return as % of

average balance of investments

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Asset backing liabilities

-4,359,129

10,587,574

706,297,608

751,765,118

-0.6

1.4

Guarantee fund backing traditional life insurance

9,820,809

14,715,936

670,308,751

780,794,982

1.5

1.9

Guarantee fund backing SVPI

-23,082,448

4,718,672

238,178,371

238,957,091

-9.7

2.0

Guarantee fund backing SVPI during the annuity payout period

-2,975,773

561,902

73,269,345

70,049,069

-4.1

0.8

Guarantee fund backing unit-linked insurance

-77,106,902

69,625,937

473,527,719

459,105,483

-16.3

15.2

Investments not ﬁnanced from insurance technical provisions

47,940,633

9,312,530

383,790,208

369,312,925

12.5

2.5

Total

-49,762,811

109,522,551

2,545,372,003

2,669,984,670

-2.0

4.1

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.12 Net claims provisions as % of net premium income

Net claims provisions*100

Net premium income

in EUR

Net claims provisions

Net premium income

Net clams provisions as % of

net premium income

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Accident insurance

15,684,696

17,680,459

23,069,429

24,183,142

Health insurance

17,065

13,120

537,495

405,936

Land motor vehicle insurance

15,450,403

17,134,841

122,102,052

117,492,243

Railway insurance

7,474,465

6,113,036

3,757,608

2,532,086

199

241

Aircraft insurance

212,808

498,393

954,383

397,629

125

Marine insurance

2,852,417

608,592

-103,121

2,962,887

Good in transit insurance

3,014,662

1,846,688

4,887,802

4,308,714

Fire and natural disaster insurance

6,943,563

10,973,756

33,234,442

36,638,740

Other damage to property insurance

23,089,518

27,564,239

78,167,008

68,237,187

Motor TPL insurance

123,057,802

157,639,676

95,153,415

95,040,153

129

166

Aircraft liability insurance

522,840

585,935

1,082,161

175,361

334

Marine liability insurance

1,437,930

788,206

1,021,816

1,072,262

141

General liability insurance

72,172,026

83,997,640

28,950,270

26,162,127

249

321

Credit insurance

996,625

1,707,665

17,258,960

14,346,889

Suretyship insurance

-363,880

19,932

1,524,759

1,887,076

Miscellaneous ﬁnancial loss insurance

970,741

1,245,341

1,388,585

-486,163

Legal expenses insurance

110,548

73,293

483,039

465,841

Travel assistance insurance

2,113,699

2,176,686

16,350,508

15,400,394

Total non-life insurance (No. 1-18)

275,757,926

330,667,499

429,820,612

411,222,504

Life insurance

20,204,285

21,432,296

92,054,945

97,382,393

Unit-linked life insurance

-28,409

84,278,825

69,834,039

Supplementary pension insurance

(Pension and Invalidity Insurance Act)

21,521,009

20,316,063

Total life insurance (No. 20-22)

20,204,285

21,403,887

197,854,778

187,532,496

Total (No. 19+23)

295,962,212

352,071,386

627,675,390

598,755,001

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

153

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.13 Gross proﬁt/loss for the year as % of net written premium

15.14 Gross proﬁt/loss for the year as % of average equity

15.15 Gross proﬁt/loss for the year as % of average assets

Gross proﬁt/loss*100

Net written premium

in EUR

Gross proﬁt/loss

Net written premium

Gross proﬁt/loss for the year as % of

net written premium

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

121,116,596

78,538,655

448,033,432

418,864,887

27.0

18.8

Life insurance

19,241,273

7,149,957

197,853,178

187,515,467

9.7

3.8

Total

140,357,869

85,688,612

645,886,610

606,380,354

21.7

14.1

Gross proﬁt/loss*100

(equity starting balance for the year + equity ending balance for the year)/2

in EUR

Gross proﬁt/loss

Average balance of equity

Gross proﬁt/loss for the year as % of

average equity

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

121,116,596

78,538,655

560,218,957

555,544,412

21.6

14.1

Life insurance

19,241,273

7,149,957

53,436,680

104,068,138

36.0

6.9

Total

140,357,869

85,688,612

613,655,637

659,612,550

22.9

13.0

Gross proﬁt/loss*100

(assets starting balance for the year + assets ending balance for the year)/2

in EUR

Gross proﬁt/loss

Average balance of assets

Gross proﬁt/loss for the year as % of

average assets

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

121,116,596

78,538,655

1,430,286,810

1,387,484,404

8.5

5.7

Life insurance

19,241,273

7,149,957

1,600,612,601

1,683,923,776

1.2

0.4

Total

140,357,869

85,688,612

3,030,899,411

3,071,408,181

4.6

2.8

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

154

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.16 Gross proﬁt/loss for the year per share

15.17 Receivables from reinsurance and reinsurer's share of insurance technical provisions as % of equity

Gross proﬁt/loss

Number of shares

in EUR

Gross proﬁt/loss

Number of shares

Gross proﬁt/loss for the year per share

No.

2022

2021

2022

2021

2022

2021

7 = 3/5

8 = 4/6

Non-life insurance

121,116,596

78,538,655

15,837,350

7.6

5.0

Life insurance

19,241,273

7,149,957

6,897,798

2.8

1.0

Total

140,357,869

85,688,612

22,735,148

6.2

3.8

Receivables from reinsurance and reinsurer's share of insurance technical provisions*100

Equity

in EUR

Receivables from reinsurance and reinsurer's

share of insurance technical provisions

Equity

Receivables from reinsurance and reinsurer's

share of insurance technical provisions as %

of equity (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

201,997,092

151,216,498

543,041,098

577,396,816

37.2

26.2

Life insurance

40,963

91,560

9,048,243

97,825,117

0.5

0.1

Total

202,038,055

151,308,058

552,089,341

675,221,933

36.6

22.4

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

155

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.18 Net written premium as % of average balance of equity and insurance technical provisions

Net written premium*100

Average balance of equity and insurance technical provisions

in EUR

Net written premium

Average balance of equity and

insurance technical provisions

Net written premium as % of

average balance of equity and

insurance technical provisions (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

448,033,432

418,864,887

1,103,609,912

1,118,415,085

40.6

37.5

Life insurance

197,853,178

187,515,467

1,578,905,030

1,659,981,628

12.5

11.3

Total

645,886,610

606,380,354

2,682,514,942

2,778,396,712

24.1

21.8

15.19 Average balance of net insurance technical provisions as % of net premium income

Average balance of net insurance technical provisions*100

Net premium income

in EUR

Average balance of

net insurance technical provisions

Net premium income

Average balance of net insurance technical

provisions as % of net premium income (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

543,390,955

562,870,672

429,820,613

411,222,504

126.4

136.9

Life insurance

1,525,468,350

1,555,913,490

197,854,778

187,532,496

771.0

829.7

Total

2,068,859,305

2,118,784,161

627,675,391

598,755,000

329.6

353.9

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

156

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.20 Equity as % of liabilities

15.21 Net insurance technical provisions as % of liabilities

Equity*100

Liabilities

in EUR

Equity

Liabilities

Equity as % of liabilities (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

543,041,098

577,396,816

1,435,563,635

1,425,009,986

37.8

40.5

Life insurance

9,048,243

97,825,117

1,496,632,978

1,704,592,224

0.6

5.7

Total

552,089,341

675,221,933

2,932,196,613

3,129,602,210

18.8

21.6

Net insurance technical provisions*100

Liabilities

in EUR

Net insurance technical provisions

Liabilities

Net insurance technical provisions as % of

liabilities (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Non-life insurance

526,435,966

560,345,943

1,435,563,635

1,425,009,986

36.7

39.3

Life insurance

1,466,852,362

1,584,084,338

1,496,632,978

1,704,592,224

98.0

92.9

Total

1,993,288,328

2,144,430,281

2,932,196,613

3,129,602,210

68.0

68.5

Performance indicators of Zavarovalnica Triglav

Business Report

Risk Management

Accounting Report

157

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

15.22 Net life insurance technical provisions as % of net insurance technical provisions

15.23 Gross written premium as % of number of permanent employees

Net life insurance technical provisions*100

Net insurance technical provisions

in EUR

Net life insurance technical provisions

Net insurance technical provisions

Net life insurance technical provisions as % of

net insurance technical provisions (%)

No.

2022

2021

2022

2021

2022

2021

7 = 3/5*100

8 = 4/6*100

Total

1,440,231,062

1,548,454,207

1,993,288,328

2,144,430,281

72.3

72.2

Gross written premium

(ending number of employees for the previous year + ending number of employees for the year)/2

in EUR

Gross written premium

Average number of employees

Gross written premium per number of

permanent employees

No.

2022

2021

2022

2021

2022

2021

7 = 3/5

8 = 4/6

Total

868,863,623

794,350,103

2,245

387,108

353,831

Contents

Risk Management

159

Risk management system

160

1.1 Powers and responsibilities

160

1.2 Risk management process

162

1.3 Risk classiﬁcation

163

Capital position

165

2.1 Capital management

165

2.2 Capital adequacy

165

Risk proﬁle

167

3.1 Presentation of the risk proﬁle

170

3.2 Underwriting risks

171

3.3 Market risks

176

3.4 Credit risks

181

3.5 Liquidity risk

183

3.6 Operational risks

188

3.7 Non-ﬁnancial risks

189

3.8 Future risks

190

Risk Management

200%

Capital adequacy of

the Triglav Group as at

31 December 2022

Sustainability risks

and information

security risks

management

upgraded

More detailed

monitoring of

the effects of

increased

inﬂation

Risk Management

Business Report

Risk Management

Accounting Report

159

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Risk

Management



The Triglav Group maintained strong

capital strength and liquidity in

2022, which was conﬁrmed by the

re-afﬁrmed “A” credit ratings.



The Group effectively managed the

risks that arose or increased due to

the Russian-Ukrainian war, imposed

European Union (EU) sanctions, rising

inﬂation and the situation in the

ﬁnancial markets.



The planned prudent underwriting

continued and market risks were kept

at target levels, while pursuing the

set matching of assets and liabilities

and the appropriate diversiﬁcation

of investments.



Development activities focused on

upgrading sustainability risks and

information security risks.

The Group’s operations are considerably affected by changes in the macroeconomic environment and ﬁnancial markets. The year 2022 was marked by the

Russian-Ukrainian war and strained geopolitical relations due to the sanctions imposed against Russia. Among the key consequences of the war in Ukraine is

high inﬂation, stemming from incentives given to the business sector to mitigate the effects of the COVID-19 pandemic. To curb inﬂationary pressures, central

banks raised interest rates, which was followed by ﬁnancial markets (see Section

7.1 of the Business Report

for more information).

Increases in inﬂation and interest rates mainly affect market and underwriting risks of the Company and the Group, especially non-life insurance, life

insurance with a guarantee and supplemental voluntary pension insurance (SVPI) with a guaranteed return. The Group’s risk management was therefore

aimed at adapting to changes in the ﬁnancial markets, mainly uncertainties due to higher inﬂation and higher risk-free interest rates, while taking into

account the sanctions imposed against Russia and Belarus.

The military aggression led to a signiﬁcant expansion and the implementation of additional restrictive measures at the level of the EU and the USA (OFAC).

The Group’s increased exposure to regulatory risk was identiﬁed, i.e. potential sanctions due to non-compliance with national legislation and/or ﬁnancial

sanctions and loss of reputation due to non-compliance with international restrictive measures. To ensure compliance, a uniform interpretation of restrictions

was implemented and the processes necessary to regularly verify the correct use and compliance with restrictive measures in the Group were set up. Exposure

to Russia and Belarus remained limited until the end of the year.

Despite the difﬁcult business environment, the Triglav Group sustained strong capitalisation even by adhering to its dividend policy. Its capital adequacy

was 200% as at 31 December 2022, which is around the lower end of the target range. The Group’s capital strength is based on effective risk management

and quality capital structure, which to a lesser extent includes subordinated liabilities. The Group’s adequate capital and ﬁnancial strength was additionally

conﬁrmed by the long-term credit rating of “A” and the ﬁnancial strength rating of “A” assigned to the Group by the credit rating agencies S&P Global Ratings

and AM Best. Both ratings have a stable medium-term outlook. See Section

6.6 of the Business Report

for more information. Zavarovalnica Triglav and Group

companies have adequate liquidity, which is achieved through regular liquidity risk management. See Section

3.5 of Risk Management

for more information

about the liquidity risk.

Main risk management development activities at Triglav Group level were carried out in the business lines that were identiﬁed as key due to internal

improvements needed or in order to respond to external circumstances:



With regard to

market risks

, due to higher interest rates and increased volatility in the ﬁnancial markets, an additional set of indicators was implemented

for more effective monitoring of risks within Zavarovalnica Triglav’s in Triglav, Pokojninska družba d.d.’s supplemental voluntary pension insurance

guaranteed fund.



With respect to

non-life underwriting risks

, more detailed monitoring of the effects of increased inﬂation on insurance technical provisions was launched

and measures were taken to ensure stable operations of the Company and the Group.



The

liquidity risk

management system was upgraded for SVPI, which was included in the life insurance optimal liquidity monitoring system. The focus was

on transferring good practices to the Group’s subsidiaries.



Operational risk

management was upgraded particularly with respect to cyber risks. By updating risk indicators, the assessment of information risks was

improved, ensuring better quality and timely action. Due to the increased volume of outsourcing, a better overview of risks was implemented, in addition

to upgrading the integrated monitoring system.



Non-ﬁnancial risk

management was upgraded especially in relation to

sustainability risks

. With regard to climate risks, a qualitative and quantitative

assessment of the effects of climate change on the business operations of the Company and the Group was carried out, covering both transition risks

and physical risks. It was found that some climate change impacts could be material for the Company and the Group, therefore timely measures are

needed. On this basis, the activities for measuring and managing these risks were deﬁned by speciﬁc segment, as well as main requirements for their

regular monitoring.

For the remaining types of risk, the focus was on process automation and maintaining the existing system. More attention was paid to upgrading

the risk management system at the level of subsidiaries

in order to consistently monitor their material risks.

Risk management system

Business Report

Risk Management

Accounting Report

160

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

1. Risk management system

The risk management system proved to be adequate also in 2022. By upgrading it, it continued to be

comprehensive and up-to-date. The system is deﬁned by internal rules and a clear separation of the

powers and responsibilities of the business functions, the Management Board, the Supervisory Board,

and the key functions and other related areas that exercise supervision. It consists of effective processes

used to constantly identify, assess and control assumed and potential or emerging risks. This allows

the Company to take appropriate and timely action and keep its risk proﬁle at the level deﬁned in its

risk appetite. The system is clear, transparent and well-documented. In subsidiaries, it is developed

according to the parent company’s principles and by adhering to the principle of proportionality.

1.1 Powers and responsibilities

The system of powers and responsibilities in risk management

is based on the “three lines of defence”

model

Even though

the Management Board and the Supervisory Board

are not directly part of the lines of

defence, they play a key role in the risk management system. They both are key stakeholders serviced

by the three lines of defence. They are responsible for the operation of the system and deﬁning

organisational goals and strategies for achieving them. Furthermore, they establish the management

structure and processes for optimal management of assumed risks.

The Company’s

business functions

operate within the framework of ﬁrst line of defence. They are

responsible for risk identiﬁcation and underwriting in their respective work area in accordance with

the guidelines of the Management Board, as well as for the management of speciﬁc risks within the

allowed exposure limits.

The key functions of

Zavarovalnica Triglav’s

governance system

are

organised as independent

organisational units

. They comprise the risk management function, the non-life and life insurance

actuarial functions, the compliance function and the internal audit function. The key functions are all

part of the second line of defence, except for the internal audit function, which is part of the third line

of defence. All key functions cooperate with one another and with other areas within the Company and

with Group companies. They are independent in their work.

The risk management function

is responsible for the establishment and coordinated and continuous

operation of the integrated risk management system. Furthermore, it monitors the general risk proﬁle,

methodologically consistent system development and the harmonisation of main risk assessment

models, performs the underlying risk analyses, reports on risk exposures and assesses capital adequacy

using the regulatory method and other capital models. In line with the Management Board’s guidelines,

the risk management function coordinates and performs own risk and solvency assessment, checks

the risk proﬁle on a quarterly basis and reports thereon to the Management and Supervisory Boards,

drafts other regulatory reports, such as the Solvency and Financial Condition Report and the Regular

Supervisory Report, and reports to regulatory bodies as required.

The decision-making bodies participating in the integrated corporate risk management

process and the three lines of defence

Supervisory Board and Audit Committee

Management Board

First line of defence

Second line of defence

Risk underwritting

Risk Management

Third line of defence

Independent control

Competent risk

management committees,

the risk management

Business functions at

function, the actuarial

all levels

function, the compliance

Internal audit

function and other

related areas

■

Day-to-day

■

Definition of the risk

■

Performance of regular

management of

management system.

independent

specific business risks

■

Definition and

effectiveness and

■

Responsibility for risk

execution of

efficiency reviews of

identification and

the identification,

the internal control

underwritting.

measurement and

system and risk

monitoring procedures.

management system.

■

Definition of the

exposure limit system.

Risk management system

Business Report

Risk Management

Accounting Report

161

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The risk management system’s committees and their responsibilities

COMMITTEE LEVEL 1

Responsibilities:

• Non-financial risks not fallin

• Capital risks and

• overall all other types of risk

material risks.

REPORTING

Assets and Liabilities

COMMITTEE LEVEL 2

Committee

(ALCO)

Primarily responsible for the specified

risk types and monitoring and control of

the effectiveness of the risk management

Responsible for:

system within its powers, in accordance

lliquidity risk, market risks,

with the methodologies approved by

life insurance underwriting

Risk Management

g within the powers of other committees,

s, with an emphasis on the Group's most

Non-life Underwriting

Operational Risk

Committee

(UWC)

(ORC)

Responsible for:

non-life insurance

operational risks

underwriting and

Committee (RMC)

Approves:

• methodologies and rules defining risk assessme

• limit systems related to all risk categories,

• recommendations to subsidiaries regarding the

to individual risks.

Project Steering

Committee

(PSC)

Responsible for:

project risks

nt methods,

maximum permitted exposures

Compliance and

Sustainable

Development Committee

(CSDC)

Responsible for:

compliance risks,

reputational risks and

the Risk Management Committee.

and pension risks, credit risks

of the investment portfolio

credit risks

sustainability risks

REPORTING

Life Insurance

Non-life Insurance

COMMITTEE LEVEL 3

Product Forum

Primarily responsible for the specified

(LI PF)

(NLI PF)

risk subtypes.

Responsible for

life insurance

non-life insurance

underwriting risks

Risk management system

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Accounting Report

162

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The compliance function

operates within the internal control system and monitors the compliance

of the Company’s operations with the applicable regulations and commitments, on which it regularly

reports to the Management Board and the Supervisory Board. It monitors and assesses the impacts

of the changed legal environment and compliance risks, assesses the adequacy and effectiveness of

procedures, advises on measures to adapt the Company’s operations to any identiﬁed changes, and

co-creates the internal controls for ensuring compliance of a particular process, line of business, or the

Company as a whole by providing guidelines and making recommendations and proposals. In addition,

the compliance function plays a major role in ensuring fair and transparent operations by monitoring

adherence to the ethical commitments and overseeing their implementation in practice.

The actuarial function

coordinates and calculates insurance technical provisions using appropriate

methods, models and assumptions, as well as comprehensive, high-quality data. It also veriﬁes the

appropriateness of the overall underwriting policy and reinsurance, and delivers an opinion whether

the amount of the premium of individual products is sufﬁcient to cover all the liabilities arising from

insurance contracts. The actuarial function also checks the adequacy of reinsurance and participates

in own risk and solvency assessment, while coordinating and calculating capital requirements for

underwriting risks. It reports on important ﬁndings to the Management Board and the Supervisory

Board. The actuarial function operates separately for non-life and life insurance.

The internal audit function

performs regular and comprehensive control of the Company’s operations.

This is achieved by reviewing and assessing the adequacy and effectiveness of the Company’s

governance, risk management and control procedures in a planned and systematic manner and by

making recommendations for their improvement. Moreover, the internal audit function is responsible

for the quality and continuous development of internal auditing. It cooperates with external auditors

and other supervisory bodies, as well as monitors the implementation of internal and external auditors’

recommendations. Apart from participating in internal audits in other Group companies, the internal

audit function also provides advisory services in agreement with the Management Board and the

management of divisions.

All key functions are in charge of not only transferring know-how and best practices to other Group

members but also of ensuring their coordinated operation.

The second line of defence of the risk management system includes

committees

, which provide support

to the Management Board in regular risk monitoring, coordination of actions and information about

risk management.

Risk management ﬁrst takes place at the level of individual subsidiaries and then at Group level. At the

level of individual subsidiaries, the management body and the persons in charge of risk management are

responsible for the establishment and operation of the risk management system.

The Subsidiary Management Division at the parent company coordinates the drawing up of minimum

standards for Group companies. These also include minimum standards for risk management, for

which the parent company’s Risk Management Department is responsible; their transfer to the

subsidiaries is carried out by the Risk Management Department in cooperation with the Subsidiary

Management Division. Through the common standards, the Group ensures an effective and transparent

risk management system, which is based on effective communication, quality exchange of data and

information, time availability, methodological consistency, accounting veriﬁability and integrity.

1.2 Risk management process

The comprehensive risk management process

at Zavarovalnica Triglav is based on the Group’s strategy

and the Company’s business plan, which deﬁne its

risk appetite

. The risk appetite sets out material risks

the Group is willing to assume to achieve its objectives and the key indicators by which these risks are

measured and monitored, including target values and limits. The Company has zero tolerance for all

risks that it is not willing to assume in the course of its operations.

One of the key indicators,

the capital adequacy ratio

, which the Company uses to measure business

performance and pursue strategic objectives, is speciﬁed in greater detail its risk appetite.

It is the

ratio between available capital and the amount of capital requirement in relation to the amount and

structure of the risks assumed. As part of

the own risk and solvency assessment process

, when planning

solvency needs, it is ensured that the ratio is kept within the target range of 200–250% at Group level.

Maintaining the ratio in the target range is ensured through a set of more detailed risk indicators and

exposure limits in all segments of the Group’s operations.

By regularly monitoring them, risks are identiﬁed in due time and appropriate action is taken. The

Company’s dividend policy is deﬁned within the framework of managing its and the Group’s capital

and is subject to capital adequacy targets. Maintaining capital adequacy within the target range is an

ongoing process, which requires regular review of business decisions in terms of proﬁtability and the

risks assumed.

The own risk and solvency assessment process

is closely connected to the quality of the whole risk

management system. By assessing solvency requirements, the appropriateness of both the regulatory

method and the strategic guidelines is veriﬁed in terms of ensuring capital adequacy. In order to

improve the use of capital, solvency requirements are assessed in relation to the requirements of

implementing the strategic plan. The stability of capital adequacy is checked with stress scenarios for

existing and potential or emerging risks by individual type of risk. This provides the Company the basis

to take appropriate action, also by amending the guidelines for accepting transactions and making

adjustments to premium rates and the limit system, risk transfers and similar. This approach increases

the readiness of Group members for identiﬁed risks and upgrades the internal control system, while

building an effective system for strategic decision-making.

The risk management process

consists of risk identiﬁcation, assessment or measurement, management,

monitoring and reporting.

Risk management system

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Risk Management

Accounting Report

163

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The standard Solvency II formula (the regulatory method), which is based on standard volatility and

own risk exposure, is primarily used for

risk assessment

. The standard formula determines the level

or a change in the parameters in the calculation under the stress scenario, and its result indicates for

each risk how much the available capital would therefore decrease in the stress scenario. The more

the risk affects the capital, the more material it is. With regard to solvency capital requirement (SCR),

the diversiﬁcation speciﬁed in the standard formula as prescribed by law is taken into account. The

risk assessment is complemented with the Company’s own assessment of the volatility of risk factors,

taking into account the Value at Risk method, with the same conﬁdence level of 99.5% over a one-year

horizon. Risks are additionally assessed according to the methodology of the credit rating agency S&P.

At least once a year, in the context of

the own risk and solvency assessment process

, a comprehensive

analysis is performed to assess the appropriateness of the regulatory method. The results of the internal

method of risk measurement or assessment are also taken into account in the ﬁnal assessment of

appropriateness.

For assumed and potential risks, the target values and/or limits are set that must be complied with

when taking risks. The risk monitoring mechanisms, which are set up at several levels, enable the

Company not only to identify any negative trends but also to

manage risks

appropriately. At the

level of business lines, negative trends are identiﬁed with the processes established to notify the key

functions about transactions with increased risks, while at the aggregate level, risks are identiﬁed

by regularly monitoring the concentration of exposure and increased volatility, where the Group’s

Risk Management Process

Key strategic

objectives

Risk

identification

assessment/

treatment

monitoring

measurement

and reporting

Definition of

Identification of

ORSA is a risk

Determination of

Risk acceptance,

Monitoring

strategic

risks that may

identification and

exposure to

transfer,

ensures the

objectives

threaten the

measurement

risks, including

mitigation

supervision of

and the

achievement of

tool

the definition of

or avoidance

risks, reporting

risk appetite

objectives

a potential

includes internal

impact on

and external

business

notification

operations

vulnerability is higher. Material detected or identiﬁed risks are treated also in the own risk and

solvency assessment process.

The Risk Management Department regularly

monitors

the matching of the actual risk proﬁle and the

deﬁned risk appetite. The ﬁndings are discussed by the Risk Management Committee, which approves

any measures to be taken in the event of a violation. Regular

reporting

on risks to the Management

Board, the Supervisory Board and the Audit Committee of the Supervisory Board also includes any

ﬁndings and measures taken by the Risk Management Committee.

1.3 Risk classiﬁcation

The Group uses risk classiﬁcation in accordance with the standard formula set out in the Insurance Act

(ZZavar-1) for internal risk monitoring. Exposure and assessment to individual types of risk and risk

management methods are presented in greater detail in Section

3. of Risk Management

The most important types of risks taken in the course of operations are described below.



Underwriting risks

are the risks of loss or of adverse change in the value of insurance liabilities

due to inadequate pricing and provisioning assumptions taken into account in the calculation

of insurance technical provisions.

Non-life

underwriting risks

(including health

insurance) and

life underwriting risks

(including pension insurance) are treated

separately. In direct insurance business,

the Company is predominantly faced with

traditional underwriting risks.



Non-life underwriting risks:

premium and

reserve risk, lapse risk and catastrophe risk.



Life underwriting risks:

mortality risk,

longevity risk, disability-morbidity risk,

lapse risk, expense risk, catastrophe risk and

revision risk.



Market risks

are the risks of loss or of adverse

changes in the ﬁnancial situation, resulting

from ﬂuctuations in the level and the volatility

of market prices of assets, liabilities and

ﬁnancial instruments. Market risks comprise

interest rate risk, equity risk, currency

risk, property risk, spread risk and market

concentration risk.

Risk management system

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Risk Management

Accounting Report

164

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022



Credit risks

are the risks of loss or adverse change in the ﬁnancial position of the company due to

ﬂuctuations in the credit position of counterparties and are a result of the debtor’s inability to fulﬁl

contractual obligations.



Liquidity risk

is the risk of loss that may occur if the company is not able to meet all expected and

unexpected present or future cash outﬂows. Liquidity risk may arise from inadequate or insufﬁcient

available funds or from the uncertainty of ﬁnancial markets and the consequent difﬁculty in

accessing the ﬁnancial resources.



Capital risk

is the risk of loss due to inadequate capital amount and/or structure with regard to

the business volume and method or problems potentially encountered when the Company or the

Group acquires additional capital, especially in the case of need for a rapid capital increase and/or

unfavourable conditions for acquiring additional capital. The category of capital risks also includes

legislative changes and changes in accounting standards having an impact on the Group’s capital

adequacy and, consequently, on the dividend payment.



Operational risks

are the risks of loss arising from inadequate or failed internal processes, personnel

or systems, or from external events and their impact. Among others, they include information

security risks with a special emphasis on cyber risks and major business interruptions.



Non-ﬁnancial risks

important to the Triglav Group’s operations include strategic risks, reputational

risk, Group risk and sustainability risks. Non-ﬁnancial risks predominantly originate from the

external environment and are closely linked to other risks, especially operational risks. Generally,

they arise from several realised factors both inside and outside of the Group.

The Group is also exposed to

potential or emerging risks

. These are risks that may develop in

the future or already exist but are not yet material. They are difﬁcult to assess but may have

a signiﬁcant impact on the business. They cannot be predicted based on past experience

as there is often no data from which to predict either the frequency or the severity of the

damage caused.

Potential or emerging risks are therefore monitored closely and, in view of the ﬁndings,

the risk management system is upgraded accordingly.

Classiﬁcation of the Company’s risks according to IFRS

Risks as determined by

IFRS

are

underwriting, market, credit, liquidity

and

other risks

The Company’s risk classiﬁcation can be translated into the IFRS risk classiﬁcation as follows:



In accordance with said standards, the most common market risks are currency, interest rate

and other price risks, including equity and property risks.



Under IFRS, credit risks include counterparty default risk, a signiﬁcant part of which

comprises exposures from reinsurance, cash, cash equivalents and receivables, as well as

spread risk and market concentration risk. The classiﬁcation used by Zavarovalnica Triglav

considers the latter two as part of market risks.



There are no differences between the classiﬁcations of underwriting and liquidity risks.



Other risks as deﬁned by the IFRS include operational, capital and non-ﬁnancial risks.

The Company monitors the situation and reports to the management on risk exposure and

risk assessment based on regulatory requirements and internal risk classiﬁcation. Due to the

differences in the IFRS and Solvency II valuation, the values of individual balance sheet items

may differ noticeably, which is also reﬂected in differences in exposure to individual risks. In

addition, different valuation methods affect the sensitivity of the items and therefore the risk

assessment. A more detailed presentation of the differences between the two valuations is

included in the Solvency and Financial Condition Report, which is published on the Company’s

website (

www.triglav.eu

Risk exposures according to the classiﬁcation used in the Company’s risk management system

are presented further on in the text.

Capital position

Business Report

Risk Management

Accounting Report

165

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2. Capital position

The management of the Company’s and the Group’s capital is an ongoing process, by which its

adequate volume and quality are determined and maintained and, as a rule, capital risk managed.

2.1 Capital management

A well-integrated risk management system is essential to effective management of capital and capital

risk.

Ensuring capital adequacy within the target range

allows the Group at any given moment to have

a sufﬁcient amount of capital that corresponds to the measurable risks assumed. As part of the Group’s

regular capital management to ensure its optimal composition and cost efﬁciency, the Company issued

a subordinated bond, which is taken into account in the calculation of capital adequacy. See Section

6.7 of the Business Report

for more information.

When deciding on entering into a transaction, the Company consistently assesses its proﬁtability in

relation to the assumed risks, thereby pursuing the target capital adequacy, and takes into account

the criterion of earning appropriate proﬁt for the shareholders. The goal of capital management is

to guarantee the safety and proﬁtability of operations as well as a long-term and stable return on

investment by paying out dividends based on the predeﬁned criteria in the dividend policy.

The capital management strategic objectives and the dividend policy criteria

> 250%

Surplus

capital adequacy

Possibility of a more aggressive growth of

business volume, assessment of potential

changes in the business strategy

200–250%

Target

capital adequacy

Regular performance of

risk management activities

150–200%

Sub-optimum level

of capital adequacy

Analyzing possible medium and long-term

measures to improve capital adequacy and

emphasized monitoring of risks

130–150%

Warning level of

capital adequacy

Implementation of measures

to improve capital adequacy

< 130%

Insufficient

capital adequacy

The Group’s target capital adequacy is set within the range of 200–250%. This means that the Group

has an adequate amount of capital to carry out its core business and cover potential losses. Capital

surplus provides protection against losses due to unforeseen adverse events and volatile capital

requirements.

Capital adequacy also has a signiﬁcant impact on the Company’s credit ratings. Therefore, when making

business decisions, the impact on the results of the models of major credit rating agencies is taken into

account. The Group’s capital model is assessed by the credit rating agencies S&P Global Ratings and

AM Best. See Section

6.6 of the Business Report

for more information on the credit rating.

2.2 Capital adequacy

Effective capital management enables the Group to improve its operations, adopt appropriate business

decisions and maintain its competitive advantages.

Explanation of differences in capital valuation in the balance sheet for financial reporting and

solvency purposes for the Triglav Group as at 31 December 2022 (EUR million)

Group’s equity

752.8

Intangible assets and deferred acquisition costs*

112.5

Net deferred taxes

46.7

Investments in subsidiaries and associates

97.0

Property

27.2

Financial investments

457.0

Net unit-linked insurance assets

129.5

Reinsurers’ share of technical provisions

79.1

Technical provisions**

772.3

Subordinated liabilities

6.2

Other assets and liabilities

150.4

Excess of assets over liabilities

939.4

Deductions for participants in other financial undertakings,

48.6

and expected dividends***

Deductibles for non-available own fund items

1.3

Subordinated liabilities

43.4

Group’s available own funds

932.9

200

400

600

800

1.000

1.200

The fair value of intangable assets are valued at 0.

Consolidation for solvency purposes differs for Triglav Skladi and Triglav, pokojninska družba.

*** These include deductions for participations and other undertakings subject to sectoral rules and for expected dividends.

SASB: FN-IN-550a.3

Capital position

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Risk Management

Accounting Report

166

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The deﬁnition of equity in the balance sheet for the preparation of ﬁnancial statements differs from its

deﬁnition for solvency purposes. Differences and important reasons for changes in items of both types

of capital in 2022 are described in the Group’s Solvency and Financial Condition Report for 2022, D and

E sections. The report is published on the website

www.triglav.eu

The Group calculates capital adequacy and the capital adequacy ratio according to the standard formula

as the ratio between total eligible own funds and the solvency capital requirement. In determining

capital adequacy, it does not take into account any adjustments and simpliﬁcations.

The Triglav Group was well capitalised as at 31 December 2022. Its capital adequacy was 200% and

thus around the lower end of its target range of 200–250%, thereby meeting its target risk appetite.

The risk appetite is in line with the capital management strategic objectives and the dividend policy

criteria presented in Section

2.1 of Risk Management

Capital adequacy of the Triglav Group and Zavarovalnica Triglav

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Available own funds (EUR million)

932.9

1,007.1

927.4

1,022.2

SCR (EUR million)

466.5

459.3

377.1

374.3

Capital adequacy (%)

200

219

246

273

The Group’s capital adequacy was affected by the decrease in available own funds by EUR 74.2 million

compared to 2021 primarily due to a poorer result in the asset management segment as a consequence

of a difﬁcult situation on the ﬁnancial markets. In the context of capital management, the largest impact

on the reduction of available own funds is the paid dividend in the amount of EUR 84.1 million.

The Group’s capital requirements increased by EUR 7.2 million, mainly due to higher non-life

underwriting risks and the change in the adjustment for the absorption capacity of deferred taxes.

Available own funds of the Group from 31 December 2021 to 31 December 2022

(EUR million)

Available own funds as at 31 Dec. 2021

1,007.1

Regulatory/model changes

0.4

Insurance operations - Life

29.6

Insurance operations - Non-life

27.5

Asset management

39.4

Capital management

65.6

Tax

4.1

Other

29.8

Available own funds as at 31 Dec. 2021

932.9

850

900

950

1,000

1,050

1,100

In addition to calculating the Group’s capital adequacy, at least once a year

a sensitivity analysis of its

capital adequacy ratio

to major changes in selected ﬁnancial market parameters is performed. With

it, the stability of the Group’s capital position, its resilience to major risk factors and their impact is

assessed. Analyses as at 31 December 2022 show sensitivity to individual shocks on ﬁnancial markets.

Sensitivity analysis of the movement of the Group’s capital adequacy ratio

Capital adequacy ratio as at 31 December 2022

200%

Equity investments +25%

204%

Equity investments -25%

196%

Interest rates +50 bp

202%

Interest rates -50 bp

198%

Credit spreads +50 bp

192%

Credit spreads -50 bp

208%

Real property +25%

209%

Real property -25%

191%

Exchange rates +20%

206%

Exchange rates -20%

194%

150%

175%

200%

225%

250%

275%

Risk proﬁle

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Accounting Report

167

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3. Risk proﬁle

The risk proﬁle shows the types of risks to which the Triglav Group is most exposed. Compared to

the previous year, underwriting risks increased, whereas market risks decreased slightly. The Group

continues to be most exposed to underwriting risks, followed by market, credit and operational risks.

See Section

3.1 of Risk Management

for more information about exposure to particular risk types.

In 2022, the Group’s risk management was focused on adjusting to changes in the ﬁnancial markets,

mainly uncertainties due to rising inﬂation and higher risk-free interest rates while taking into

account the sanctions imposed against Russia and Belarus, and on upgrading sustainability risks and

information security risks.

The impact of inﬂation on operations

Higher inﬂation affects both insurance and asset management activities. The central banks’ response

to raise interest rates caused the inﬂation to indirectly affect the rise in required yields on

debt

investments

, which are an important part of the investment portfolio.

Inﬂation affected

non-life insurance

operations in 2022 by increasing gross written premium, gross

claims paid, claims provisions and expenses. Premium increase in 2022 will have the largest impact on

premium income in 2023. Product prices were set by taking into account inﬂation at premium, claims

and cost levels, including reinsurance. In agreement with the insurers, clauses were incorporated in

contracts to allow adjusting the sum insured and premium according to the relevant price index in

a certain period of time. Furthermore, sums insured, premiums and deductibles were adjusted by

agreement, speciﬁcally in real property insurance, motor vehicle insurance, agricultural insurance and

transport insurance. In adjusting, not only inﬂation was taken into account, but also the claims ratio of

individual segments and any relevant trends (such as claims frequency).

In non-life insurance, inﬂation causes claims inﬂation, which increases the volume of provisions and

costs. Both affect the operating result and the capital adequacy ratio. To assess the risk of higher

inﬂation, the impact of its increase by 1 percentage point was tested (based on the calculation of

non-life insurance claims provisions as at 31 December 2022). Taking into account higher inﬂation,

gross claims provisions increase by EUR 3.1 million, mostly in the case of long-tail motor liability

insurance and general liability insurance.

The Company’s life insurance products

, where beneﬁts are limited by the sum insured, are not

signiﬁcantly affected by inﬂation. An exception may be some types of complementary insurance

(riders), where the liability depends on the price of the service. Most insurance policies include a clause

that allows the policyholder to adjust the premium and beneﬁts based on inﬂation. The analyses carried

out so far have not shown a signiﬁcant impact of the current period of higher inﬂation on policyholders’

decision to terminate an insurance policy early.

Inﬂation risks were actively managed within the established asset-liability management process

(the ALM process). The impact of changes in the bond market, and thus on the bonds in the

Company’s asset portfolio, therefore remained within the previously set limits deﬁned in the

Risk Appetite Statement.

The impact of inﬂation on the

supplemental voluntary pension insurance

guaranteed fund is indirect

– through an increase in the minimum guaranteed return and a fall in the value of existing debt

investments in the pension fund. For Group companies that underwrite supplemental voluntary

pension insurance with a guaranteed return (Zavarovalnica Triglav and Triglav, pokojninska družba),

the risk of failing to achieve the guaranteed return materialised in 2022 as a result of rising interest

rates and, consequently, a greater difference between the fund’s guaranteed value and the value of the

policyholders’ assets. Particularly for Triglav, pokojninska družba, this also increased the risk of non-

refundable payment into the guarantee fund with a guaranteed return, which occurs when provisions

for failing to achieve the guaranteed return exceed 20% of the company’s capital. See Section

3.2.2.2 of

Risk Management

for more information.

The Company and Group companies also monitor the impact of inﬂation on

liquidity risk

. In the event

of declining purchasing power or too low returns on traditional insurance products with a savings

component, this could increase the frequency of life insurance surrenders, whereas rapidly rising

interest rates could decrease the value of assets. The higher frequency of surrenders and the fall in the

value of assets are included in the stress scenario designed to regularly verify liquidity in exceptional

circumstances. The liquidity stress scenario was transferred to Group subsidiaries. Both the Company

and the Group companies had adequate liquidity in 2022. See Section

3.5 of Risk Management

for more

information about liquidity stress scenarios.

The year 2022 was also marked by a signiﬁcant increase in health insurance claims incurred, especially

in supplemental health insurance. The reasons for the increase in claims incurred are mainly the

normalisation of the provision of healthcare services following the end of the epidemic, the increase in

the prices of healthcare services and the implementation of legislative changes to ensure the stability

of the healthcare system in autumn 2022. The aforementioned legislative changes had an additional

impact on the increased volume of supplemental health insurance claims, but at the same time enabled

the Company to release additional provisions for unexpired risks created in accordance with of the

Act Determining Temporary Measures to Mitigate and Remedy the Consequences of COVID-19, which

partially mitigated the negative consequences on operations in 2022. With respect to complementary

health insurance, some insurance bases were adjusted to manage signiﬁcant inﬂationary pressures and

their impact on the prices of healthcare services and the amount of expected claims.

In 2022, the risks described in more detail in Section

Challenges and opportunities of today in the

Business Report

were also relevant.

Risk proﬁle

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Risk Management

Accounting Report

168

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Material types of risks of the Triglav Group

Capital

risk

Non-life

underwriting

Premium and

reserve risk

Lapse

risk

Catastrophe

risk

Potential or emerging risks

Underwriting

risks

Life

underwriting

risks

Market

risks

Credit

risks

Liquidity

risk

Mortality

risk

Interest

rate risk

Reinsurance

risks

Risk of

settling

matured and

contingent

liabilities

Longevity

risk

Equity

risk

Bank

risks

Market

liquidity risk

Disability and

morbidity risk

Property

risk

Receivables

risk

Lapse

risk

Spread

risk

Expense

risk

Currency

risk

Revision

risk

Market

concentration

risk

Life

catastrophe

risk

Operational

risks

Non-financial

risks

Internal fraud,

unauthorised

activity or

negligence of

employees

Strategic

risks

External

fraud or

unauthorised

activity of

third parties

Reputational

risks

System failure

or break-down

and related

business

disruptions

Group

risks

Damage to

physical assets

and related

losses or

business

disruptions

Sustainability

risks

Inadequate

management

of employees

and the safety

of the work

environment

Non-compliance

with internal

and external

regulations

Inadequate

implementation

and management

Cyber risks and

of processes and

other

Project risks

the control

information

environment,

security risks

including business

partners

Risk proﬁle

Business Report

Risk Management

Accounting Report

169

Sustainability risk management as part of comprehensive risk management at

the Triglav Group

Management Board

Risk Management Committee (RMC)

Compliance and Sustainable Development Committee

Comprehensive

risk

management

Risk Management Department

Sustainable Development Coordinator

Sustainability

risk management

Risk appetite and other internal

risk management rules

The Triglav Group's strategic ambitions in

sustainable development (ESG)

Sustainability risk management has been greatly upgraded in recent years. The content related to

sustainability and sustainability risks is discussed in the context of the Group’s strategic ambitions

in this ﬁeld (see sections

12.1 Implementation of strategic guidelines and sustainable development

goals of the Triglav Group

and

4.2 Implementation of the Triglav Group strategy in 2022 of the

Business Report

for more information), incorporating care for sustainable development into the

Company’s organisational structure. The Company is building a comprehensive sustainability risk

management system; sustainability risks are part of non-ﬁnancial risks (see Section

1.3 of Risk

Management

). At Group level, sustainability-related activities are coordinated and directed by the

Sustainable Development Coordinator. The Company’s risk management function is responsible for

the optimal integration of sustainability aspects of business into the risk management system, which

are monitored by the Compliance and Sustainable Development Committee. The latter reports to the

Risk Management Committee, which is responsible for the comprehensive management of the Group’s

most material risks. Decisions are made by the Management Board. See Section

12. of the Business

Report

for more information about sustainability aspects.

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3.1 Presentation of the risk proﬁle

The level of underwritten risks in 2022 was within the range

deﬁned in the risk appetite. Of the risks covered by the

standard formula, the Group is most exposed to underwriting

and market risks, followed by credit and operational risks.

Within the Group, the Company assumes the bulk of the risks.

See Section

1.3 of Risk Management

for more information

about the types of risks assumed by the Company.

The risk proﬁle of the Company and the Group shows their

exposure to most material risk categories and is presented in

the table below.

A well-integrated and uniform assessment method is needed

to properly compare risks between business lines. Risks are

assessed based on the standard formula deﬁned by the

applicable legislation and internal methodologies.

The quantitative presentation of risk exposure presented below

is primarily based on accounting data. Exposures on a mark-to-

market basis are presented in greater detail in the Solvency and

Financial Condition Report, Section C, available at

www.triglav.eu

The presentation of the Triglav Group’s risk proﬁle and risk

assessments by individual risk segment are based on market

values for solvency purposes. The Company uses a regulatory

method, which is assessed as appropriate for risk measurement

in the context of the own risk and solvency assessment process.

In the case of unit-linked insurance, the risk is not borne by the

Company. Certain tables below therefore show the value of

these insurance contracts separately or are excluded from the

presentation of exposure and risk assessment of the Company

and consequently the Group.

Risk dashboard of Zavarovalnica Triglav and the Triglav Group* as at 31 December 2022

Risk

assessment

Risk trend

Risk

(current)

(future)

Note

Capital adequacy and

The Company’s and the Group’s capital adequacy remained within the target range throughout 2022. With the ORSA process, capital strength was conﬁrmed even in stress scenarios.

capital risk

The Group maintains premium growth and achieves the target values of indicators in strategic markets. The impact of inﬂation on non-life underwriting risks is adequately managed by

taking measures to adjust covers provided by products and their pricing backed by consistent cost management. Going forward, uncertainty remains regarding future claims and cost

Underwriting risks

inﬂation. Due to inﬂation and a rapid increase in interest rates, the risk of failing to achieve the guaranteed return materialised during the year in the pension insurance segment, which the

Company adequately managed by taking appropriate action.

The year 2022 was marked by elevated inﬂation, resulting in rising interest rates. Greater volatility was detected in the ﬁnancial markets, which resulted in increased market risks.

Market risks

Nevertheless, the Group maintains market risks at deﬁned levels and pays special attention to the matching of assets and liabilities and optimal investment policies developed on this

basis. With respect to pension insurance investment portfolios, the Company responded to the situation by switching to a less risky investment policy.

Despite the increase in exposure, credit risks remain low. This is ensured by regular and systematic monitoring and management of individual exposures in all segments and a well-

Credit risks

diversiﬁed portfolio of partners. The credit risk assessment in 2022 was affected by deterioration in the credit quality of partners due to the Russian-Ukrainian war.

The Company’s strong liquidity position is maintained by regularly monitoring its liquidity; the Group subsidiaries also have adequate operational liquidity. In the context of the ORSA

Liquidity risk

process, liquidity was checked with stress scenarios, which conﬁrmed that the Group companies are well prepared for extraordinary events.

The Group takes a proactive approach to operational risk management. It pays increasingly more attention to regular maintenance and additional upgrades of the information security

Operational risks

management system, as cyber risks remain among the most relevant. In addition to these, operational risk is mainly increased by large-scale regulatory changes and the general human

resource risk of employing workers in shortage occupations.

* An overall assessment of the main risk categories was made on the basis of discussed quarterly risk reports. The risk trend shows a potential assessment of future risks relative to the latest projections.

i) The colour scale of assessed risks:

High

Medium

Low

ii) Risk trend:

downward

stable

upward

Risk proﬁle assessment* of the Triglav Group as at 31 December 2022

Underwriting risks: 52%

Market risks: 28%

Operational risks: 7%

Credit risks: 7%

Risks of companies from

other ﬁnancial sectors: 4%

Risks of other

non-ﬁnancial companies: 2%

* The risk proﬁle is determined

based on risk assessment using

the standard formula, without

taking into account the effects

of diversiﬁcation across

individual risk categories.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.2 Underwriting risks

The Group assumes underwriting risks by underwriting various types of insurance policies. Its insurance

portfolio is diverse in terms of products and so are its underwriting risks. Insurance is divided into non-life

insurance, which includes health insurance and reinsurance, and life insurance, which includes pension

insurance. Insurance claims or insurance liabilities stemming from insurance policies are classiﬁed as

life insurance liabilities (that depend on biometric factors such as age, gender and health status of the

person insured) and non-life insurance liabilities (that are independent of biometric factors).

Non-life insurance liabilities

include all (potential) non-life insurance claims, including health insurance

claims, and reinsurance claims, with the exception of non-life insurance claims paid out as an annuity.

The latter are non-life insurance claims that depend on biometric factors of the injured party and are

therefore classiﬁed as life insurance liabilities. Non-life insurance liabilities also include (potential)

accident insurance claims stemming from life insurance policies, but which do not depend on the

biometric factors of the injured parties.

Life insurance liabilities

arise from insurance policies for traditional, unit-linked and pension insurance.

The latter also includes supplemental voluntary pension insurance provided by the Company in the

context of the second pillar of the pension system. Life insurance liabilities include non-life insurance

claims, which are paid out as annuities and which to the greatest extent stem from motor vehicle

liability insurance.

The basic principle of the insurance business is adequate

risk equalisation

. At Group level, this is

achieved through sufﬁciently large homogeneous risk groups, which constitute the entire portfolio of

the presented underwriting risks. The key prerequisite for adequate risk equalisation is efﬁcient and

correct classiﬁcation of risks. A speciﬁc risk is assessed and classiﬁed into an appropriate group at the

time of underwriting. Also considered are new ﬁndings, know-how and procedures of reinsurers who

assume a portion of underwriting risks.

All identiﬁed risks are managed

in the context of the actuarial control cycle

by regularly checking the

deviations of the actual effects of risks from those anticipated. In the event of identiﬁed deviations,

appropriate action is taken – each time by adjusting the design or criteria of an insurance product or the

criteria for calculating insurance technical provisions.

Underwriting risks are directly related to underwriting insurance policies, the amount of premiums and

insurance technical provisions. They are negatively affected by losses or adverse changes in the value of

insurance liabilities due to inadequate pricing and assumptions taken into account in the calculation of

insurance technical provisions.

This type of risk is strongly related to the premium amount. The structure of consolidated gross written

insurance, coinsurance and reinsurance premiums of the Group by non-life and life insurance segment

is presented in detail in Section

7.5 Gross written insurance, coinsurance and reinsurance premiums of

the Business Report

Underwriting risks are presented separately for non-life and life insurance.

3.2.1 Non-life underwriting risks

3.2.1.1 Description of risk and its management

Non-life insurance underwriting at Group level creates risks for an undercharged premium in relation to

assumed risks, higher claims than provisions created for underwritten policies, higher deviations in the

proﬁtability of underwritten policies than expected and numerous or major catastrophic events. The

described risks depend on their volatility and respective exposure.



Premium risk

is the risk that written premium is insufﬁcient to meet all obligations arising from

the conclusion of an insurance contract. The risk depends on net premium income and the annual

volatility of claims ratios, which are determined for each insurance segment using the standard

formula. The test of their adequacy for the insurance portfolio is performed annually in the

context of own risk and solvency assessment; on average, it shows lower risks than predicted

by the standard formula. Premium risk also depends on the diversiﬁcation of their exposure by

various insurance segment in the portfolio. Thus, the Group aims to ensure that the portfolio

is appropriately diversiﬁed. Premium risk is managed through efﬁcient monitoring of claims

experience and a timely adjustment of pricing policy.



Reserve risk

arises when the actual realised claims deviate from the expected claims. Insurance

technical provisions are formed based on the estimate of expected claims paid from valid non-

life insurance contracts. The reserve risk is therefore measured by estimating potential loss for

claims already incurred in an exceptional event. With respect to the latter, a scenario is taken into

consideration which, in an annual period, (statistically) occurs once in 200 years and which, in

accordance with the standard formula used to measure the amount of the Company’s required

capital for each insurance segment, depends on the best estimate of net claims provision and

its annual volatility. The reserve risk is also inﬂuenced by the maturity of liabilities – the average

duration of claim settlements – for which provisions were made. With respect to liability insurance,

more than half of foreseen claims are settled after one year, while in other insurance segments

they are paid within one year. The reserve risk is higher in provisions with long maturities than in

provisions with short maturities. Liabilities with long maturities also include claims paid as annuities

and therefore include the payment revision risk and other biometric risks, which are otherwise

characteristic of life insurance products. The reserve risk is monitored by regularly checking the past

amount of formed provisions in relation to realised claims and, based on the ﬁndings, by adapting

the processes of creating provisions.



Lapse risk

is realised when the lapse rates of underwritten non-life insurance contracts are higher

than the expected lapse rates. At Group level, this risk is managed by regularly analysing lapse and

adjusting products if necessary.



Catastrophe risk

means the risk of an unexpected one-off event with a loss potential that is

considerably higher than the estimated average loss of Group insurance companies. Catastrophe

risk at Group level is the highest where the insurance business is concentrated in a particular

geographical area or sector/industry by individual insurance peril.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Therefore, for non-life insurance,

concentration risk

is monitored at Group level and separately in each

(re)insurance company. Concentration risk occurs

upon the concentration of insurance business for

individual insured perils in some geographical

areas or sectors/industries. Concentration also

arises as a result of correlation between individual

insurance classes. In such case, even a single

loss event may have a signiﬁcant impact on the

Company’s ability to settle its obligations in

a particular insurance segment. Concentration

risk is managed through prudent assumption of

underwriting risks, regular monitoring of portfolio

exposures and appropriate reinsurance contracts.

Special attention is paid to all claims incurred

at natural events. The results of various models

are taken into consideration when assessing the

loss potential of catastrophe events and then

used to determine the reinsurance coverage. The

reinsurance programme includes various types of

reinsurance protection, which is used to manage

underwriting risks both at Group level and at the

level of each Group insurance company.

3.2.1.2 Risk in 2022

The proﬁle of non-life underwriting risks changed

somewhat in 2022. Due to the larger insurance

portfolio and unfavourable claims experience,

premium and reserve risks increased.

When underwriting non-life insurance and

inward reinsurance policies, the Group’s

insurance companies and reinsurance company

underwrite premium risk, reserve risk, lapse risk

and catastrophe risk. Under the standard formula,

these risks depend on exposure to individual risks

and their volatility.

The Group is most exposed to premium and

reserve risks, followed by catastrophe and

lapse risks. At Group level, Zavarovalnica Triglav

underwrites the bulk of the non-life underwriting

risks, Triglav, Zdravstvena zavarovalnica

underwrites most health underwriting risks,

while Pozavarovalnica Triglav Re underwrites the

majority of inward reinsurance underwriting risks.

Other Group insurance companies contribute just

over 20% to total non-life underwriting risks.

Risk assessment* for non-life insurance and inward reinsurance including

health insurance for the Triglav Group as at 31 December 2022

Preimium and reserve risk: 68%

Catastrophe risk: 17%

Lapse risk: 15%

* The risk proﬁle is determined based on risk assessment

using the standard formula, without taking into account

the effects of diversiﬁcation across individual categories of

non-life underwriting risks. It includes non-life insurance and

complementary accident insurance taken out with life insurance,

but non-life insurance annuities are excluded.

Exposure of the Triglav Group to premium risk as at

31 December 2021 and 31 December 2022 (EUR)*

800,000,000

700,000,000

600,000,000

500,000,000

400,000,000

300,000,000

200,000,000

100,000,000

2021

2022

real property insurance

other portfolio

* Real property insurance comprises insurance from insurance

classes 8 (ﬁre and natural disaster insurance) and 9 (other

damage to property insurance).

Exposure to premium risk increased the most

in the real property insurance group in 2022.

Most growth in this insurance group stems from

underwriting international reinsurance policies,

which increases the geographical diversiﬁcation

at Group level. See Section

7.5 of the Business

Report

for more details about the movement

of gross written insurance, coinsurance and

reinsurance premiums.

Premium risk is regularly monitored both

at Group level and at the level of insurance

segments. The adequacy of written premium

in relation to actual claims and costs arising

from underwritten insurance contracts is also

measured with combined ratios. Combined

ratios for the last three years are presented in

Section

8. Financial result of the Triglav Group

and Zavarovalnica Triglav of the Business Report

Based on actuarial estimates of the movement

of the amount of beneﬁts, expenses, combined

ratios and the market situation, premium rates

for non-life insurance are high enough, therefore

premium risk management is appropriate.

The appropriateness of provisions for ﬁnancial

reporting purposes for individual insurance

classes (see Section

3.18 of the Accounting

Report

for more information) is veriﬁed by

performing the liability adequacy test based on

the balance as at the last day of the ﬁnancial

year by regularly calculating insurance technical

provisions for solvency purposes. According to

actuarial estimates of future claims as at the

2022 year-end, the created insurance technical

provisions were adequate for both ﬁnancial

reporting and solvency purposes (see Section

3.16

and Section

3.18 of the Accounting Report

for more information).

In addition to exposures (net claims provisions),

reserve risk assessment is affected by volatility,

which varies by line of business. In 2022, the

Group maintained the ratio between the

exposure of insurance segments with low and

high volatility. Insurance segments with lower

volatility at Group level include motor vehicle

liability insurance, other motor vehicle insurance

and legal expenses insurance. The remaining

insurance segments are characterised by higher

volatility, with the highest volatility in the credit

and suretyship insurance segment.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The ratio of exposure to reserve risk with low

and high volatility for the Triglav Group as at

31 December 2021 and 31 December 2022

100%

80%

53%

50%

60%

40%

47%

50%

20%

2021

2022

exposure with high volatility

exposure with low volatility

The Group’s insurance companies regularly

analyse the adequacy of insurance technical

provisions, which are created by consistently

using harmonised actuarial methods. The

adequacy of provisions is assessed by comparing

the difference between the originally estimated

liabilities and the actual liabilities on a speciﬁc

cut-off date, taking into account claims already

paid in the reporting period. Analyses show that

the difference in historical years is such that it

conﬁrms the adequacy of provisions as at

31 December 2022.

Lapse risk

did not change signiﬁcantly during

the year.

Catastrophe risk

In 2022, three events were recorded that were

deﬁned as catastrophe events; all three were

hailstorms. The table presents the gross and net

ﬁnancial effects of these events for the Company.

They are shown separately according to modelled

and non-modelled perils, as the Company

regularly models the perils that pose the greatest

exposure or high risk. These perils are ﬂood, hail,

storm and earthquake.

For Slovenia, the Company has several models at

its disposal, on the basis of which the distribution

of claims according to return periods for hail, storm

and ﬂood is determined. The table below shows

probable maximum loss (PML) for a 200-year

return period

over a one-year period by peril.

The Company models ﬂood, storm and hail

among realised catastrophe events, but it does

not model frost. See Section

7.2 Environmental

impact on the Triglav Group’s operations in the

Business Report

for more information about

realised catastrophe events.

Non-life insurance risk concentration

The ﬁre and natural disaster insurance portfolio

includes the largest number of individual large

perils, which is also exposed to catastrophe perils;

therefore, the greatest need for reinsurance

coverage is related thereto. Compared to the

preceding year, the Group’s reinsurance coverage

did not change signiﬁcantly.

With regard to regulating the reinsurance

coverage in the Triglav Group, Pozavarovalnica

Triglav Re plays an important role as it assumes

underwriting risks based on reinsurance

agreements with individual Group companies.

Triglav Re concludes outward reinsurance

agreements (retrocession agreements) for

a portion of the risks it reinsures in order to better

control its exposure and to protect its own assets,

while indirectly protecting the assets of the

Group’s insurance subsidiaries.

The Group’s largest retention amounts to

EUR 11.5 million per peril, with the exception

of the nuclear peril. For the latter, the Group’s

largest exposure amounts to EUR 14 million,

which the Group assumes from the Slovenian

and the Croatian nuclear pool. Nuclear perils are

characterised by an extremely low frequency, as

no such claim has been reported in 28 years,

and by a low or null correlation with other

contingent liabilities.

Probable maximum loss (PML) for a 200-year return period by peril* at Zavarovalnica Triglav

Modelled peril (EUR million)

31 Dec. 2022

Hail

77.7

Storm

138.3

Flood

47.7

* In the case of availability of several models, the average of modelled results was taken into account.

Realised ﬁnancial effect of catastrophe events at Zavarovalnica Triglav

Modelled perils

Non-modelled perils

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Gross ﬁnancial impact (EUR million)

21.3

12.8

3.4

Net ﬁnancial impact (EUR million)

16.6

11.2

3.3

* Also includes claims development and an estimate by the end of the year.

Net written premium share in relation to gross written premium as at 31 December 2022

Motor vehicle

liability

100%

All other segments

80%

Land vehicles

60%

40%

20%

Credit

Other damage to property

General

Fire and natural forces

liability

Accident

Triglav Group

Zavarovalnica Triglav

SASB: FN-IN-450a.1

SASB: FN-IN-450a.2

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Assumed capacity of nuclear perils for 2021 and 2022 at the Triglav Group

Assumed capacity in EUR

2022

2021

Zavarovalnica Triglav d.d.

10,000,000

Pozavarovalnica Triglav Re d.d.

3,000,000

Triglav Osiguranje d.d., Zagreb

1,000,000

Total after the event

14,000,000

The earthquake event in Ljubljana also poses a concentration risk for the Group. It is covered with

quota share reinsurance, while retention is additionally protected with excess-of-loss reinsurance for

catastrophe events. The impact of the 200-year earthquake in Ljubljana on the capital adequacy of the

Company and the Group is veriﬁed each year in the context of the own risk and solvency assessment

process. Having an adequate reinsurance coverage, the Company and the Group would successfully

survive a severe earthquake. According to stress scenario calculations

, the estimated ﬁnancial

impact of a major earthquake in Ljubljana would amount to EUR 24.8 million for the Company and

EUR 25 million for the Group. This shows a strong resilience of both the Company and the Group, which

would retain their capital adequacy even if this event were realised. As part of the own risk and solvency

assessment process, the impact of a 200-year ﬂood in Slovenia in 2022 was assessed, where according

to stress scenario calculations the estimated ﬁnancial impact would amount to EUR 18.6 million.

3.2.2 Life underwriting risks

3.2.2.1 Description of risk and its management

Life underwriting risks, which to the greatest extent stem from the life insurance segment, also include

pension insurance and health insurance. The bulk originates from direct insurance business.

Life insurance liabilities largely arise from the life insurance portfolio. It comprises traditional insurance,

mainly insurance with proﬁt participation, and unit-linked insurance. Traditional insurance covers,

which also include a savings component, are to the greatest extent linked to the life and health of the

persons insured; they also include pure term insurance with mortality risk and several types of annuity

insurance with longevity risk. Furthermore, longevity risk occurs in pension insurance, particularly

in supplemental voluntary insurance. The vast majority of insurance covers include statutory or

contractual rights of policyholders to modify the insurance or reinsurance cover, i.e. to either early

terminate or increase it in whole or in part, making them subject to lapse risk.

Life underwriting risks, which also stem from pension insurance, include biometric and business risks.

Biometric risks arise from the uncertainty of biometric assumptions in the calculation of the insurance

liability, namely from mortality, longevity, health, morbidity and disability. Business risks stem from

the uncertainty of assumptions regarding the amount of costs and the unfavourable realisation of

policyholders’ contractual options, the most important of which is early termination.

If the assumptions in the insurance liability calculation change unfavourably, the premium and/

or insurance technical provisions may become too low and the insurance policy less proﬁtable than

expected at the time of its conclusion. Life insurance riders (additional coverage) are less dependent on

biometric factors, as a result their risks are more similar to the risks of non-life insurance. For example,

accident insurance is less dependent on biometric data, therefore their risks are similar to the risks of

non-life insurance.

Life underwriting risks are described in greater detail below.



Mortality risk

is associated with insurance that covers the risk of death if at the time of the person

insured’s death the coverage is greater than the provisions created. Whole life insurance products,

credit life insurance products and life insurance products with a savings component pose the

highest exposure for the Group. The sums insured in the event of death in these cases are high,

while insurance technical provisions are relatively low.



Longevity risk

at Group level stems mainly from annuity and pension insurance products. With these

policies, the amount of the basic annuity is determined in advance and is ﬁxed. It is calculated based

on paid-in assets and assumptions, in particular the life expectancy of the beneﬁciaries. If the overall

life expectancy of the population insured increases signiﬁcantly, the probability of death decreases,

thereby increasing the liabilities of exposed policies. Due to the guaranteed amount of annuity, the

Company faces the risk of uncertainty due to longevity (guaranteed annuity rate risk) in some older

pension insurance policies already during the accumulation period. The policyholder will be entitled

to guaranteed payouts at the end of the accumulation period and the transition to the annuity

period (payout period), i.e. when they will begin to receive life annuity, which will then be calculated

based on the saved assets and by applying the aforementioned ﬁxed factors. Longevity risk is not

transferred to reinsurers, instead additional dedicated provisions are formed if necessary.



Disability and morbidity risk

is associated with the products, which are underwritten by the Group’s

insurance companies and cover critical and serious illnesses and disability.



Lapse risk

refers to products where the contractual provisions allow the policyholder to modify the

policy, which includes the option of partial or full surrender, changing the amount of coverage or

premium, capitalisation, etc. Whether this risk materialised depends on the policyholders’ actions,

and therefore it is more difﬁcult to manage. This risk is reduced by designing the products that meet

the clients’ needs and by carefully managing the existing portfolio.



The Group assumes

expense risk

in all life insurance products and non-life annuities. The expenses

included in the policy are determined at the time of conclusion, either as a ﬁxed amount or share.

However, as insurance or annuity payments lasts many years, the increase in actual expenses may

exceed the expenses attributed to the policy and thus have a negative impact on the proﬁtability of

the Group’s insurance portfolio. This risk may be a consequence of miscalculations, the inadequacy

of the cost model or incorrectly estimated future volume, trend or volatility of expenses.



Revision risk

may affect non-life insurance claims paid out as annuity. Periodic annuity payments

may be increased mainly due to the deterioration of the beneﬁciary’s health or a change in legal

practice, consequently increasing the nominal value of the Group’s liabilities.

In addition to high insurance claims, the earthquake scenario in Ljubljana takes into account additional operating expenses due to business interruption, an increase in claim handling expenses

and a reduction in reinsurers’ share in claims. The scenario does not take into account the potential effects of the earthquake in Ljubljana on the ﬁnancial markets in Slovenia.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022



Life catastrophe risk

primarily includes cases of concentration and extreme events that may affect

a large number of persons insured.

Contractual ﬁnancial options and guarantees are embedded in a number of policies, so the risks related

thereto are assessed in the context of regular portfolio valuation. Among them is guaranteed interest

rate risk, which occurs in the products with a savings component (traditional life insurance and annuity

insurance). The guaranteed interest rate is set at the time of concluding an insurance policy and remains

valid for the entire policy term. The risk arises when the actual rates of return on investment, which

cover the beneﬁts under the policies, are lower than the guaranteed interest rate. This risk is reduced

by maximising the matching of assets and liabilities from these policies and by creating additional

provisions, especially in the part of the portfolio of liabilities with higher guarantees. Similar risks due to

a special guarantee for the return arise from the SVPI policies during the saving period.

3.2.2.2 Risk in 2022

The proﬁle of life underwriting risks changed somewhat in 2022. On the one hand, lapse risks increased,

and on the other, mortality and expense risks decreased.

Among life underwriting risks, the Group is most exposed to lapse risk, life expense risk, longevity risk

and mortality risk. Within the Group, Zavarovalnica Triglav underwrites the bulk of life underwriting

risks. The largest share of the Group’s guaranteed interest rate risk is assumed by Zavarovalnica Triglav

and Triglav, pokojninska družba.

Gross written insurance, coinsurance and reinsurance premiums in 2022 by (re)insurance subsidiary of

the Group is presented in Section

7.5 of the Business Report

The adequacy of insurance technical provisions for life insurance is regularly checked, they are

determined according to prudent assumptions. The adequacy of provisions is checked using the

liability adequacy test (LAT) and calculating the “realistic provisions” set based on the present value

of the best estimate of expected contractual and other cash ﬂows. The test is performed at least once

a year based on the balance on the last day of the year (see Section

3.17 of the Accounting Report

for

more information). The test results for 2022 showed that an adequate level of insurance technical

provisions for life insurance was created for the Group and individual insurance companies. Additional

insurance technical provisions were created for the identiﬁed shortfalls in the guarantee fund backing

supplemental voluntary pension insurance saving and the guarantee fund backing supplemental

voluntary pension insurance payouts.

Traditional life and pension insurance policies which include saving at a guaranteed interest rate cause

potential asset-liability mismatch risk. The guarantee fund backing life insurance includes the majority

of the Company’s liabilities with a guaranteed ﬁxed interest rate. Mathematical provisions in the

amount of EUR 698.0 million were created for this guarantee fund. In order to achieve a guaranteed

return on the life insurance portfolio in said guarantee fund, it is necessary to guarantee a 2.0% return

on assets. The achieved rate of return on the fund in 2022 stood at 1.5% (see Section

15.11 of the

Business Report

for more information).

Risk assessment* of life insurance for the Triglav Group as at 31 December 2022

Lapse risk: 44%

Life expense risk: 27%

Longevity risk: 11%

Mortality risk: 10%

Life catastrophe risk: 7%

Revision risk: 1%

Disability-morbidity risk: 0%

* The risk proﬁle is determined on the basis of a risk assessment using the standard formula, without taking into account the effects of

diversiﬁcation across individual categories of life underwriting risks. It also comprises risks from ring-fenced funds. It includes

life insurance and non-life insurance annuities, but complementary accidental insurance taken out with life insurance is excluded.

Similar risks due to a special guarantee for the return arise from the SVPI policies during the saving

period. These risks mostly arise from market risks, which are described in more detail in Section

3.3 of

Risk Management

. In 2022, due to the rapid rise in interest rates and the resulting required returns on

debt investments, the risk of failing to achieve the guaranteed return materialised in supplemental

voluntary pension insurance of Zavarovalnica Triglav and Triglav, pokojninska družba, d.d. As a result,

a number of steps were taken to manage this risk, which were aimed at adjusting the investment

policy to a less risky one (e.g. reducing the duration of debt investments, reducing exposure to equity

investments). One of the key actions taken by Triglav, pokojninska družba d.d. was capital increase, which

ensured capital strength and compliance with all legal requirements applying to pension companies.

Life underwriting risk concentration

The concentration of life underwriting risks is assessed as low, The life insurance portfolio is well

dispersed by all criteria, including geographically, due to dispersed retail sale of policies. Any minor

concentration risk in the portfolio is reduced by transferring a portion of the risks to reinsurers based on

the reinsurance programme. The sum insured in the event of death is less than EUR 60,000 for 82.4%

of the whole life insurance portfolio and less than EUR 35,000 for 99.2% for the other life insurance

portfolio. The sum insured of 98.7% of complementary accidental death insurance is lower than

EUR 50,000, while the sum insured of 99.1% of complementary accidental disability insurance is lower

than EUR 100,000. The aforementioned sums insured represent retention stipulated by a contract in line

with the reinsurance contract for most insurance policies.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.3 Market risks

3.3.1

Description of risk and its management

The Group invests written premium (in the framework of the insurance business) and subsidiaries’ own

assets. The value of the Group companies’ investment portfolios depends on the situation and trends

in ﬁnancial markets. Financial investments are the largest asset group and therefore an important part

of the Group’s operations. In this way, insurance and other obligations and capital requirements are

covered while ensuring an appropriate return. In investing, the Company is exposed to market risks due

to changes in the prices of equity securities and real property, changes in interest rates (risk-free interest

rates and credit spreads) and changes in exchange rates. An important part of these risks are also risks

arising from the excessive concentration of assets from direct investment in ﬁnancial instruments or

indirect through investments in collective investment undertakings. The primary method of measuring

and monitoring these risks at Group level is based on

the Solvency II standard formula

, which is

complemented by

internal measures based on the value-at-risk (VaR) method

Market risks are managed according to the established methods and processes with clearly deﬁned

powers and responsibilities. The market risk management system enables quality analyses and

reporting on market risks, as well as developing and implementing measures aimed at preventing

the reduction of available own assets due to changes in ﬁnancial markets, including the real property

market. Market risks are reduced by appropriately diversifying the investment portfolio and regularly

matching assets and liabilities (

the ALM process

). Derivatives are also used but to a lesser extent.

The level of unexpected losses, which is still acceptable in relation to the Group’s strategic objectives

and capital strength, is deﬁned in its market risk appetite. On this basis, the limit system was set up

that also speciﬁes maximum acceptable exposure to individual types of market risk and the target

investment portfolio structure.

The following risks are considered in the context of market risks:



Interest rate risk

is highly dependent on the time matching of cash ﬂows of assets and liabilities. At

the Group level, it is managed within the framework of the asset and liability management (ALM)

process and is limited by the maximum permissible deviation in the gap of the duration of assets

and liabilities. In the event of a negative gap between the duration of assets and liabilities, interest

rate risk means that when interest rates rise, the value of liabilities from the Group’s insurance

policies decreases more than the value of assets. This movement, however, affects the proﬁtability

of operations and capital adequacy.



Equity risk

is mainly related to changes in exposure and equity prices and volatile growth in share

prices. Assets and liabilities sensitive to changes in the level or stock market volatility are exposed

to this risk. Assets (investments) mainly include shares and equity-oriented collective investment

undertakings. With the growth of stock markets, opportunities can arise from such investments.

Liabilities sensitive to this risk arise primarily from unit-linked life insurance and supplemental

voluntary pension insurance, where such risks are primarily assumed by the policyholders. In this

segment, the focus is therefore on achieving the greatest possible matching of assets and liabilities.

The purpose of equity investments is to achieve high long-term returns and ensure adequate

diversiﬁcation of the investment portfolio. The Group manages equity risk in its portfolio by setting

exposure limits as well as through geographical and sectoral diversiﬁcation of equity investments.

In addition, due to different levels of development of capital markets and local statutory limitations,

the investment policy is adapted to individual markets.



Property risk

arises primarily from changes in the value of investment property, own-use real

property, other tangible ﬁxed assets and real property leased by Group companies for own use.



Spread risk

arises from the sensitivity of the values of assets, liabilities and ﬁnancial instruments

to changes in the level or volatility of credit spreads over the risk-free interest rate term structure,

which means that it cannot be eliminated by matching the liabilities. Within the Group, only debt

investments with embedded credit and liquidity risks are exposed to the risk. The increase in credit

spreads is associated with the fall in the price of debt securities and vice versa. Zavarovalnica Triglav

actively manages credit spread risk arising from such securities at Group level. Therefore, investment

policies were developed that aim to invest in high-quality securities and are subject to the limit as

deﬁned in the Risk Appetite Statement.



Currency risk

is the risk of a decrease in the value of assets denominated in foreign currencies or an

increase in the value of liabilities denominated in foreign currencies due to changes in exchange

rates. Therefore, currency risk results from the mismatched currency position of assets and liabilities.

It is managed by matching assets and liabilities and, to a lesser extent, by using derivatives.



Market concentration risk

arises from a possible unfavourable change in the ﬁnancial situation due

to high dependence or unfavourable correlations between the movement of the values of individual

exposures or their groups. Factors or types of concentration are different. They include, for example,

the risk of asset concentration (in case of excessive exposure to one investment or one issuer) and

the risk of sector or geographical concentration (with excessive exposure to one concentrated

geographical area and/or sector/industry, where the risk arises from geopolitical, macroeconomic,

social, weather or other disturbances). The Group continuously monitors concentration to issuers

and groups of related issuers as well as geographical and sector concentration.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.3.2 Risk in 2022

Despite major changes in the ﬁnancial markets, the Group always kept market risks at predetermined

levels, which required active management of these risks. The scope of market risks decreased, and their

structure changed as a result of active risk management and redirecting investments to safer asset

classes. The decline in market risks compared to the previous year is primarily a result of a decrease in

equity risk and spread risk.

In contrast, market concentration risk rose mainly due to greater excess

concentration to the Triglav Group.

With respect to market risks in the context of ﬁnancial investments (see Section

7.9 of the Business

Report

for more details), the Group is most exposed to debt instruments, which mostly include debt

securities and deposits with banks, followed by equity securities and real property. The highest market

risk for the Group is spread risk, followed by currency risk, property risk, market concentration risk and

equity risk. Interest rate risk is the lowest.

Market risk assessment* by subtype for the Triglav Group as at 31 December 2022

Spread risk: 26%

Currency risk: 18%

Property risk: 17%

Market risk concentration: 16%

Equity risk: 14%

Interest rate risk: 9%

* The market risk proﬁle is determined based on risk assessment using the standard formula. It also includes market risks from ring-fenced

funds, without taking into account the effects of diversiﬁcation across individual market risk categories.

3.3.2.1 Spread risk

Spread risk is predominantly affected by debt securities, which account for around 68% of the Group’s

total investments. Their value also depends on the level of credit spreads, which reﬂect the credit quality

of debt instruments. The level of credit spreads increased during 2022 due to the tense geopolitical

situation and rising inﬂation with increases in interest rates and required returns. They initially raised

risk-free interest rates, but at the same time credit spreads also increased as a result of an expected

worsening economic situation. This can additionally affect the credit quality of debt securities issuers.

The Company and the Group manage this risk proactively in accordance with investment policies.

The bulk (approximately 61%) of investments that are exposed to spread risk are related to exposure

to countries, followed by exposure to the ﬁnancial sector, which relates to 21% of investments in

debt securities.

Exposure to spread risk is limited by the maximum allowed share in the capital, to which the

investment policy is also adapted. Spread risk is a material risk, because a change in credit spread

affects the amount of assets but not the amount of liabilities, therefore the risk cannot be reduced

through asset-liability management. In its investment portfolio, the Group is exposed to investments

with outstanding credit quality. A total of 58% of investments in debt securities have at least an “A”

credit rating. The bulk (90%) of the portfolio is accounted for by debt securities of issuers having a credit

rating of at least “BBB”. The credit quality of the debt securities portfolio did not change signiﬁcantly in

2022, as the average credit quality with an “A” credit rating was maintained.

The structure of debt securities is presented in detail in Section

7.9 Investment structure of the Triglav

Group and Zavarovalnica Triglav in the Business Report

3.3.2.2 Equity risk

Equity risk arises from exposure to equity investments, excluding investments in subsidiaries and

associates and unit-linked life insurance contract investments. These comprise 8.7% of the Triglav

Group’s investment portfolio. The majority of exposure to equity risk arises from exposure of the

parent company.

The value of the aforementioned equity investments decreased in 2022. The reason for their decrease

is primarily the sale of some investments. Geographical diversiﬁcation of equity investments is shown

in the table. Most equity investments are in shares issued by issuers in advanced markets, among

which issuers based in the European Union predominate.

Geographical diversiﬁcation of equity investments excluding associates (EUR)

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Equities in the EU

206,450,200

276,478,222

140,724,000

184,660,063

Equities in the USA

9,730,015

31,728,927

9,723,308

18,463,891

Equities in Asia*

Equities in emerging markets

5,126,789

6,988,438

700,998

885,254

Global equities**

13,469,662

15,765,073

Total ﬁnancial investments

234,776,666

330,960,660

151,148,306

204,009,208

Unit-linked life insurance

contract investments***

546,964,429

594,267,073

484,822,314

529,598,379

TOTAL

781,741,095

925,227,733

635,970,621

733,607,587

Equity investments in advanced Asia (Japan, Hong Kong).

** Globally dispersed equity investments.

*** Unit-linked life insurance contract investments include only equity securities excluding debt securities.

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178

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Sensitivity analysis of equity investments*, excluding associates (EUR)

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

10%

– 10%

10%

– 10%

10%

– 10%

10%

– 10%

Equities in the EU

20,645,020

–20,645,020

27,647,822

–27,647,822

14,072,400

–14,072,400

18,466,006

–18,466,006

Equities in the USA

973,002

–973.002

3,172,893

–3,172,893

972,331

–972.331

1,846,389

–1,846,389

Equities in Asia**

Equities in emerging markets

512,679

–512.679

698,844

–698.844

70,100

–70.100

88,525

–88.525

Global equities***

1,346,966

–1,346,966

1,576,507

–1,576,507

Total ﬁnancial investments

23,477,667

–23,477,667

33,096,066

–33,096,066

15,114,831

–15,114,831

20,400,921

–20,400,921

Impact on fair value reserves

13,650,271

–12,110,607

20,490,695

–20,394,885

13,290,041

–11,750,377

17,237,779

–17,141,969

Impact on proﬁt or loss

9,827,396

–11,367,059

12,605,371

–12,701,181

1,824,790

–3,364,453

3,163,142

–3,258,952

Impact on equity

23,477,667

–23,477,666

33,096,066

–33,096,066

15,114,831

–15,114,831

20,400,921

–20,400,921

The effects shown do not include the tax aspect and the indirect impact of the change in these assets on liabilities (for life insurance).

Equity investments in advanced Asia (Japan, Hong Kong).

*** Globally dispersed equity investments.

The sensitivity analysis of equity investments, whose risks are borne by the Company and the Group,

in relation to the change in prices of equity investments and an analysis of this impact on the Group’s

comprehensive income or proﬁt or loss showed that a 10% increase in market prices of equities

in the portfolio would have a positive impact on the Group’s fair value reserves in the amount of

EUR 13.7 million, and on its proﬁt in the amount of EUR 9.8 million. If the trend were opposite and

market prices of equity investments dropped by 10%, the Group’s fair value reserves would decrease by

EUR 12.1 million and its proﬁt by EUR 11.4 million. The estimated impact on the proﬁt or loss is shown

in the table. This only illustrates the estimated changes at Group level and does not include unit-linked

life insurance contract investments.

3.3.2.3 Property risk

The Group’s total exposure to property risk amounts to EUR 186.7 million. Own-use real property also

includes property leased by the Group. With respect to the latter, the Group is not directly exposed

to property risk, because it involves mostly long-term lease agreements. The Group’s real property is

primarily located in Slovenia.

Exposure to real property in relation to its purpose* (EUR)

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Right-of-use assets

10,367,625

10,933,109

3,940,725

4,548,297

Investment property not intended for the direct

conduct of insurance business

68,377,495

75,110,973

43,377,173

43,840,055

Real property for own use**

107,998,470

108,655,212

67,285,007

65,143,310

Total

186,743,590

194,699,294

114,602,905

113,531,662

Investment property is disclosed at cost in the ﬁnancial statements. The fair value of investment property is presented in Section

3.3 of the Accounting Report

. The fair value is calculated using valuation techniques. Valuation of property based on the existing

methodology is performed by an authorised value.

Own-use real property includes the item “property, plant and equipment” in the Accounting Report.

3.3.2.4 Currency risk

The Group’s currency risk arises predominantly from subsidiaries not operating in the euro area. These

companies conduct most of their transactions in the local currency, thus being exposed to currency risk

relating to the euro and other currencies to a lesser extent. A part of the Group’s currency risk arises

from the excess of assets over liabilities in US dollars, in respect of which the exposure is similar as in

the preceding year.

To a lesser extent, the Group manages currency risks with derivatives. As at 31 December 2022,

the Group had no currency derivative contracts.

Financial investments in euros represent 91% of the Group’s ﬁnancial investments, with the exposure

to individual foreign currency not exceeding 3%. Compared to the previous year, the open currency

position in Croatian kuna, which was managed in previous years with derivatives, increased slightly.

Due to Croatia adopting the euro in early 2023, the open currency position as at 31 December 2022

was not reduced with derivatives.

SASB: FN-IN-550a.1

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Currency exposure of the Triglav Group’s ﬁnancial assets and liabilities* (all ﬁgures are in EUR)

Triglav Group as at 31 Dec. 2022

EUR

USD

BAM

RSD

HRK

MKD

Other

Total

Investment property

67,360,152

595,820

262,041

159,482

68,377,495

Investments in associates

37,810,184

Financial investments

2,347,938,798

23,919,505

24,893,374

45,870,610

80,785,520

26,883,325

42,818,167

2,593,109,846

Debt securities

2,066,524,463

19,733,028

12,437,085

38,700,115

45,121,211

14,896,016

38,896,041

2,236,307,959

Equity securities

212,213,418

6,597

8,077,212

9,043

13,933,393

536,457

234,776,667

Derivatives

Deposits and loans

64,305,727

4,179,880

3,764,519

6,511,746

21,730,916

11,129,564

3,922,126

115,544,478

Other ﬁnancial investments

4,895,190

614,558

649,706

321,288

6,480,742

Insurance technical provisions transferred to reinsurers

163,884,364

5,178,558

5,018,909

9,479,050

6,531,800

19,706,336

209,799,017

Operating receivables

225,500,238

8,645,511

6,746,512

17,453,238

22,348,990

5,835,338

23,582,266

310,112,093

Cash and cash equivalents

69,266,573

1,328,014

19,060,436

4,124,195

2,108,475

651,170

1,922,589

98,461,452

Total

2,911,760,309

39,071,588

56,315,051

77,189,134

111,934,267

33,369,833

88,029,358

3,317,670,087

Unit-linked life insurance contract investments

514,795,165

50,314,953

760,544

719,558

5,276,301

571,866,521

TOTAL ASSETS

3,426,555,474

89,386,541

56,315,051

77,189,134

112,694,811

34,089,391

93,305,659

3,889,536,608

Subordinated liabilities

49,522,163

Insurance technical provisions

2,235,382,965

27,273,770

25,145,402

50,626,594

85,673,510

17,997,831

76,979,524

2,519,079,596

Insurance technical provisions for unit-linked life insurance contracts

523,873,183

50,314,953

760,544

719,558

5,276,301

580,944,539

Employee beneﬁts

15,266,627

703,239

223,475

915,410

320,357

17,429,108

Other ﬁnancial liabilities

1,293,690

–27

72,876

490,208

15,328

2,277

–792

1,873,560

TOTAL LIABILITIES

2,825,338,628

77,588,696

25,921,517

51,340,277

87,364,792

19,040,023

82,255,033

3,168,848,966

Net currency exposure

601,216,846

11,797,845

30,393,534

25,848,857

25,330,019

15,049,368

11,050,626

720,687,642

Triglav Group as at 31 Dec. 2021

EUR

USD

BAM

RSD

HRK

MKD

Other

Total

Investment property

73,655,405

939,908

343,315

165,071

7,274

75,110,973

Investments in associates

35,591,377

439,970

36,031,348

Financial investments

2,696,810,852

33,348,260

16,018,156

46,360,648

82,083,642

24,907,486

38,171,105

2,937,700,149

Debt securities

2,356,117,282

16,010,033

10,329,321

40,483,390

39,468,000

16,185,482

33,976,306

2,512,569,814

Equity securities

295,388,355

13,665,459

2,653,539

9,161

17,595,702

563,555

1,084,890

330,960,661

Derivatives

20,317

Deposits and loans

41,257,160

3,672,768

2,425,387

5,349,172

25,019,940

7,504,037

3,109,909

88,338,373

Other ﬁnancial investments

4,027,738

609,909

518,925

654,412

5,810,984

Insurance technical provisions transferred to reinsurers

134,760,073

11,754,730

10,916,992

5,380,847

6,582,046

5,445,203

174,839,891

Operating receivables

137,361,117

6,165,396

5,678,925

21,679,860

16,501,938

4,818,444

21,098,646

213,304,326

Cash and cash equivalents

59,471,380

969,631

15,422,167

1,707,739

1,931,335

476,533

2,342,846

82,321,631

Total

3,137,650,205

52,238,017

49,416,118

75,472,409

107,264,032

30,209,737

67,057,800

3,519,308,318

Unit-linked life insurance contract investments

567,844,531

44,651,331

2,552,189

108,067

4,461,368

619,617,486

TOTAL ASSETS

3,705,494,736

96,889,348

49,416,118

75,472,409

109,816,221

30,317,804

71,519,168

4,138,925,804

Subordinated liabilities

49,471,831

Insurance technical provisions

2,306,950,485

22,677,748

30,595,827

45,549,130

79,294,238

25,226,955

66,074,002

2,576,368,385

Insurance technical provisions for unit-linked life insurance contracts

573,082,632

44,651,331

108,067

4,461,368

622,303,398

Employee beneﬁts

15,702,584

590,328

227,465

840,249

311,507

17,672,133

Other ﬁnancial liabilities

2,653,226

37,556

377,054

15,372

2,445

3,085,653

TOTAL LIABILITIES

2,947,860,758

67,329,079

31,223,711

46,153,649

80,149,859

25,648,974

70,535,370

3,268,901,400

Net currency exposure of the statement of ﬁnancial position

757,633,978

29,560,269

18,192,407

29,318,760

29,666,362

4,668,830

983,798

870,024,404

Currency derivatives

19,275,628

–19,255,311

20,317

Net currency exposure

776,909,605

29,560,269

18,192,407

29,318,760

10,411,051

4,668,830

983,798

870,044,721

* The tables includes only the most important items from the balance sheet by currency. Therefore, intangible assets, property, plant and equipment, non-current assets held for sale, right-of-use assets, ﬁnancial investments in subsidiaries and other assets, other provisions, deferred tax liabilities,

operating liabilities, lease liabilities and other liabilities are not included.

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.3.2.5 Interest rate risk

In terms of ﬁnancial statements, the Group is exposed to interest rate risk primarily on the assets

side, particularly through debt securities, which are classiﬁed as available-for-sale ﬁnancial assets and

ﬁnancial assets measured at fair value through proﬁt or loss. The Group could be exposed to interest

rate risk on the liabilities side, mostly through insurance technical provisions for

life insurance

, and to

a lesser extent, in insurance technical provisions for

non-life insurance

, especially those created for the

payment of annuity claims for motor vehicle and accident insurance. In the event of a drop in market

interest rates, the Company performs the LAT to determine whether insurance technical provisions need

to be increased. When interest rates rose in 2022, the test showed that there was no signiﬁcant need

for such an increase. When interest rates rise, insurance technical provisions are further reduced and are

below the level of accounting estimates.

The Company manages interest rate risk with economic valuation. The latter is presented in the

Solvency and Financial Condition Report, which shows the interest rate sensitivity of assets and

liabilities to the market value. In this regard, the cash ﬂows of assets and liabilities are carefully

matched and their duration gap is reduced.

The Company continued to shorten the maturity of its investment portfolio in 2022 due to rising

inﬂation and the resulting increases in interest rates and required returns on debt investments.

The asset-liability sensitivity analysis of the change in interest rate and its impact on comprehensive

income or proﬁt or loss of the Group showed that a sudden decrease of 100 basis points would have

a positive impact (in the amount of EUR 73.2 million), while a sudden increase of 100 basis points would

have a negative impact (in the amount of EUR 75.6 million). The impact of a rise in interest rates on the

ﬁnancial statements is lower than in the preceding year due to lower interest sensitivity of assets and

liabilities. Assets are less sensitive to interest rates due to lower exposure and shorter maturity. Due to

higher interest rates, insurance liabilities show low interest rate sensitivity.

The Company and the Group monitor the duration gap

of interest-sensitive items for the life, non-life

and supplemental voluntary insurance segments, excluding the unit-linked life insurance segment.

The matching of the duration of assets and liabilities is measured through the duration gap of assets

and liabilities, which measures the sensitivity of interest-bearing assets and liabilities to changes

in interest rates. The gap shows the matching of cash inﬂows and outﬂows. The market matching

assessment as at 31 December 2022 was comparable to that as at 31 December 2021. This was

achieved primarily by actively managing interest rate risk and adjusting the portfolio to rising interest

rates. The duration gap of assets and liabilities at Group level is negative and stands at –1.2 year

(compared to –1.0 year as at 31 December 2021). The most important impact originates from the

Company, where the duration gap of assets and liabilities is –1.9 years (compared to –-1.8 years as at

31 December 2021). The duration gap of assets and liabilities in the Company’s life insurance portfolio

(excluding supplemental voluntary insurance and the unit-linked life insurance segment) is –2.8 years

and in its non-life insurance portfolio 0.5 year.

Sensitivity analysis of assets and liabilities to interest rate changes* (EUR)

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

+100 bp

–100 bp

+100bp

–100bp

+100 bp

–100 bp

+100 bp

–100 bp

Debt securities issued by countries

–58,030,809

64,188,532

–95,209,665

109,701,001

–37,726,493

43,067,408

–72,058,154

84,374,724

Debt securities issued by ﬁnancial institutions

–8,088,344

8,417,840

–11,781,910

12,466,525

–5,874,733

6,153,647

–8,987,158

9,510,788

Debt securities issued by companies

–9,605,769

9,964,273

–13,766,502

14,581,999

–6,193,354

6,491,901

–8,721,396

9,259,840

Compound securities

18,736

–13,885

4,851

1,427

18,736

–13,885

4,851

1,427

Other

Total ﬁnancial investments

–75,706,186

82,556,760

–120,753,227

136,750,952

–49,775,844

55,699,071

–89,761,857

103,146,779

Insurance technical provisions for life insurance

–7,114,800

89,556,173

–7,114,800

56,984,924

Insurance technical provisions for non-life insurance

–100,847

9,374,115

23,687,975

9,293,421

23,255,269

Total insurance technical provisions

–100,847

9,374,115

–7,114,800

113,244,149

9,293,421

–7,114,800

80,240,192

Impact on capital

–75,605,340

73,182,647

–113,638,426

23,506,803

–49,775,844

46,405,650

–82,647,057

22,906,587

Impact on fair value reserves

–74,225,337

81,009,938

–102,271,823

116,707,229

-48,294,995

54,152,249

-82,277,092

95,072,550

Impact on proﬁt or loss

–1,380,003

–7,827,291

–11,366,604

–93,200,426

–1,480,850

–7,746,599

–369.965

–72,165,963

* The effects shown do not include the tax aspect and the indirect impact of the change in these assets on liabilities (for life insurance).

In addition to the duration of assets and liabilities, the duration gap also takes into account

the value of assets and liabilities as at calculation date (weighted duration gap).

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3.3.2.6 Market risk concentration

The largest share of the Group’s assets is accounted for by debt securities. Approximately 61% is

accounted for by government bonds, followed by ﬁnancial bonds (21%) and corporate bonds (19%).

Among individual issuers of debt securities, excluding unit-linked life insurance contract investments,

the Group is most exposed to issuers from Germany, followed by Slovenia. See Section

7.9 of the

Business Report

for more information on the concentration of ﬁnancial investments.

3.4 Credit risks

3.4.1 Description of risk and its management

The Group companies are exposed to credit risks in their operations. These risks measure the potential

loss of assets due to the inability of the counterparty to meet its contractual obligations. They arise

from ﬂuctuations in the credit position of individual counterparties and the concentration of risks of

these parties.

There are three sources of the Group’s credit risk by partner type:



reinsurance:

The Group creates credit risks by transferring underwriting risks to reinsurers. Its

exposure to reinsurance is measured by insurance technical provisions ceded to reinsurers, including

overdue receivables from reinsurance and coinsurance business. At Group level, these risks are

managed by carefully selecting reinsurance partners with an appropriate credit rating, ensuring

that the transferred risks are adequately dispersed among the partners. The comprehensive system

and well-deﬁned rules for credit risk management include the process of assigning credit ratings

to partners, which also takes into account own criteria in addition to public information or credit

ratings. For monitoring and managing credit risks as well as calculating capital requirements using

the regulatory method, the system of uniform naming and keeping of basic data on reinsurance

partners is also important when determining credit ratings.



banks:

Credit risks arising from the Group members’ investments in cash and cash equivalents are

managed by performing an expert analysis of the bank’s credit quality and through a sufﬁcient degree

of portfolio diversiﬁcation. This is achieved through a resilient and comprehensive limit system, which

limits the exposures of individual companies to banks and the Group to banking groups.



receivables:

Credit risks at Group level also arise from overdue insurance and other receivables from

partners of the Group’s (re)insurance companies. This exposure is managed by regularly monitoring

the payment dynamics by various homogeneous groups and insurance segments. Separately from

receivables from direct insurance operations, the Company also monitors and manages

subrogation

receivables

, which represent the credit risk of non-payment of the policyholder’s liabilities towards the

Company. The Company manages them by monitoring the effectiveness of the collection of credited

subrogation receivables and the share of subrogation receivables in relation to the claims settled.

Concentration risk in the context of credit risk

occurs upon overexposure to an individual counterparty,

group of related parties or parties connected by common risk factors such as credit ratings. At Group

level, the concentration risk of individual counterparties is managed with a single database of all

counterparties in reinsurance and banking.

3.4.2 Risk in 2022

Compared to the 2021 year-end, the credit risk assessment as at 31 December 2022 increased

predominantly due to higher exposure to banks and growth in receivables from policyholders.

The Group is exposed to credit risks from reinsurance, banks and receivables from policyholders and

other partners. It is exposed to banks through cash held for the operations of the Company and other

Group companies.

Credit risk exposure by partner type (EUR)

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Banks

98,787,801

82,321,630

23,065,241

13,912,991

Cash from unit-linked life insurance

contract investments

8,891,955

2,042,836

8,411,716

1,967,631

Other cash

89,895,846

80,278,794

14,653,525

11,945,360

Reinsurers

248,232,922

201,967,510

200,895,093

149,562,360

Persons insured and other partners*

59,754,456

44,905,588

26,685,926

16,881,127

Total

406,775,179

329,194,728

250,646,260

180,356,478

Total excluding cash from unit-linked life

insurance contract investments

397,883,224

327,151,892

242,234,544

178,388,847

* Past due reinsurance receivables are included in exposure from reinsurance.

With regard to cash and cash equivalents, the Company is most exposed to Slovenian banks, which

mainly have a “BBB” credit rating or are without a credit rating. In addition, the Group is exposed to

banks in the countries where its subsidiaries operate, which are usually without a credit rating. The

table above also shows cash from unit-linked life insurance contract investments, which do not pose

any direct credit risks to the Group. In 2022, the credit ratings of banks to which the Group is exposed

did not changed signiﬁcantly.

The Company monitors all reinsurance partners at Group level, with the largest exposure arising from

the parent company and the Group’s reinsurance company.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Exposure to reinsurance partners by credit rating

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

AAA

0.0%

AA to BBB

73.9%

75.9%

76.2%

76.3%

Below BBB

7.6%

9.4%

6.7%

16.6%

Not rated

18.5%

14.8%

17.1%

7.1%

Average credit rating

BBB

The Group is most exposed to reinsurers with an “A” credit rating. The proportion of partners with an

“AA” credit rating is also high. The proportion of non-rated reinsurance partners at Group level is 18.5%,

The bulk stems from insurance claims of insurance companies in strategic markets, which are covered

by non-rated reinsurers. The proportion of non-rated reinsurers in the Company is slightly lower, i.e.

17.1%. The reason for such a major change compared to 2021 are provisions and reinsurance claims

from already existing old claims reinsured with Russian reinsurance partners, which lost their credit

rating in 2022.

The geographical concentration of reinsurers at Group level is the highest in Germany. Compared

to 2021, it changed mainly due to the increase in the concentration of exposure to reinsurers in

Kazakhstan, which predominantly arises from the Company’s businesses and is the result of new

reported claims reinsured in Kazakhstan. Due to its exposure to the subsidiary Pozavarovalnica Triglav

Re, Zavarovalnica Triglav is geographically most exposed in Slovenia.

Concentration of ﬁve largest exposures to reinsurers by country

Triglav Group

31 Dec. 2022

31 Dec. 2021

Germany

14.8%

Germany

19.2%

Kazakhstan

10.2%

Russia

12.6%

Serbia

8.4%

Serbia

8.6%

Russia

8.1%

Bosnia and Herzegovina

7.0%

Great Britain

6.8%

Great Britain

6.1%

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

Slovenia

47.8%

Slovenia

52.5%

Kazakhstan

11.9%

Russia

16.1%

Russia

9.4%

Barbados

4.3%

Cyprus

6.7%

Kazakhstan

3.4%

Great Britain

5.9%

Great Britain

3.2%

The Group is exposed to receivables through past due receivables from insurance operations and

other receivables. In the context of credit risks, the Company monitors and manages receivables from

policyholders and agents, other receivables from direct insurance operations and other short-term

receivables, particularly subrogation receivables. In the Group’s portfolio, these receivables are well

dispersed and therefore do not cause concentration. All receivables from insurance transactions with

clients are presented in Section

3.10 of the Accounting Report

The Company monitors the payment discipline of receivables from policyholders in detail using several

indicators. The movements of written premium and payments are monitored by maturity, in different

time periods and by insurance class.

Separately from receivables from direct insurance operations, the Company also monitors and manages

subrogation receivables. These pose a credit risk of the person insured’s default. In addition to the

payment of subrogation receivables, the Company monitors the effectiveness of the collection of

credited subrogation receivables and the share of subrogation receivables in relation to claims settled.

Share of paid established receivables for the year

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Receivables due

from policyholders

67.5%

66.4%

88.1%

88.6%

Subrogation receivables

42.3%

41.2%

49.7%

45.4%

The payment discipline did not change signiﬁcantly during the year with regard to receivables from

policyholders and subrogation receivables. It will remain within expected values in 2022 as well.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.5 Liquidity risk

3.5.1 Description of risk and its management

Liquidity risk is the risk of loss when the company is unable to meet its obligations arising from the

timing mismatch of inﬂows and outﬂows, or when it is able to meet them only at higher costs. It

includes risk of settling matured and contingent liabilities and market liquidity risk.



Risk of settling matured and contingent liabilities

is the risk of the company’s inability to dispose of

a liquidity position that enables it to settle its liabilities (including incurred unexpected liabilities)

upon maturity.



Market liquidity risk

is the risk of loss due to the inability to sell an asset without major impact on

the market price due to inadequate market depth or market disruptions.

The Company’s expected cash ﬂows, i.e. inﬂows and outﬂows, are kept and managed proactively. Most

cash ﬂows of liabilities arise from insurance operations. The assets intended to cover these liabilities

are adjusted by covering them in accordance with the investment policy in normal circumstances

(the ALM process), while aiming to generate surplus assets to ensure the repayment of liabilities even

when liquidity needs are higher. Thus, when necessary, the Group adjusts the liquidity of its portfolio in

order to meet all expected and unexpected cash outﬂows and overdue liabilities at any given moment.

To manage liquidity risk, a process was set up based on the liquidity coverage ratio (LCR), which is used

to provide for adequate liquidity reserves on an ongoing basis. The LCR is determined for both expected

and predetermined liquidity stress scenarios. These are determined based on

various stress scenarios

adjusted to the Company’s liquidity risk, which includes adverse insurance and ﬁnancial events.

Furthermore, the sources of liquidity are regularly adjusted, as the available funds must always exceed

the needs.

When measuring liquidity, liquidity sources include primarily insurance premium and cash ﬂows of

investments intended to cover liabilities. The most important liquidity needs include the payment of

claims, expenses and the payout of planned dividends. In the event of an emergency, an action plan is in

place, including the sale of liquid excess assets over liabilities and additional security mechanisms such

as credit and repo lines. Scenarios and measures are reviewed annually and adjusted to exposures and

the market situation. With the described system, liquidity risk is effectively managed, while optimising

excess liquidity by investing in alternative sources with higher returns on the market.

Liquidity at Group level is assessed based on the liquidity of the Company and the subsidiaries. The

liquidity of the Group companies is planned on an annual basis by estimating the volume and scope of

business in the coming year. In the framework of own risk and solvency assessment, it is planned for

at least three years; the planning includes future potential liquidity needs and effectively provides for

available liquidity sources.

Futures, options and other ﬁnancial derivatives are used only if they help to mitigate market risks. As

a possible measure to obtain additional liquidity, repo lines were established with commercial banks. The

Company does not carry out securities lending techniques.

3.5.2 Risk in 2022

Zavarovalnica Triglav and the Group companies had adequate liquidity in 2022. Also, as part of own risk

and solvency assessment in 2022, the liquidity scenarios carried out conﬁrmed the Company’s liquidity

strength and that the subsidiaries were properly prepared for stress scenarios.

SASB: FN-IN-550a.3

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Financial assets and liabilities of the Triglav Group by contractual maturity* (EUR)

Triglav Group as at 31 Dec. 2022

Not deﬁned

Up to 1 year

1 to 5 years

5 to 10 years

Over 10 years

Total

FINANCIAL ASSETS

Financial investments

206,588,948

380,947,184

1,390,509,876

373,384,715

241,679,124

2,593,109,847

Debt securities

293,611,097

1,328,382,834

372,634,903

241,679,124

2,236,307,958

held to maturity

10,459,762

271,956,745

110,939,522

63,113,407

456,469,436

at fair value through proﬁt or loss

37,767,073

92,082,668

5,552,767

434,233

135,836,741

available for sale

245,384,262

964,343,421

256,142,614

172,149,046

1,638,019,343

loans and receivables

5,982,438

Equity securities

199,392,945

423,210

34,951,618

8,894

234,776,667

at fair value through proﬁt or loss

63,480,799

available for sale

135,912,146

423,210

34,951,618

8,894

171,295,868

Derivatives

Loans and receivables

715,260

86,912,877

27,175,424

740,918

115,544,479

Other ﬁnancial investments

6,480,743

Unit-linked life insurance contract investments

546,964,429

6,445,414

13,692,299

3,958,181

806,198

571,866,521

at fair value through proﬁt or loss

546,964,429

1,800,595

13,692,299

3,958,181

806,198

567,221,702

available for sale

loans and receivables

4,644,819

Insurance technical provisions transferred to reinsurers

600,000

123,023,763

62,482,943

18,839,732

4,852,580

209,799,017

Operating receivables (including tax receivables)

4,210,654

302,277,560

783,797

2,833,680

6,402

310,112,093

Cash

64,977,662

33,483,790

98,461,452

Total ﬁnancial assets

823,341,693

846,177,711

1,467,468,915

399,016,308

247,344,304

3,783,868,185

FINANCIAL LIABILITIES

Subordinated liabilities

49,522,163

Insurance technical provisions

2,832,730

830,300,253

712,169,018

291,095,892

682,681,703

2,519,079,596

Insurance technical provisions for unit-linked life insurance contracts

471,954,899

1,595,718

10,787,145

18,973,015

77,633,761

580,944,538

Other ﬁnancial liabilities

490,206

1,322,103

61,230

1,873,558

Total ﬁnancial liabilities

475,277,835

833,218,083

722,956,163

310,130,137

809,837,646

3,151,419,858

* The table shows ﬁnancial assets classiﬁed by contractual maturity, although liquid investments may be sold earlier. In liabilities, insurance

technical provisions are disclosed using projected cash ﬂows to determine the duration. Therefore, the table does not reﬂect real liquidity.

Liquidity is ensured not only with short-term investments (with the maturity of less than 1 year), but also with other highly liquid assets in

other maturity buckets (e.g. government bonds of EEA countries and the OECD, shares in ETF funds, etc.).

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Triglav Group as at 31 Dec. 2021

Not deﬁned

Up to 1 year

1 to 5 years

5 to 10 years

Over 10 years

Total

FINANCIAL ASSETS

Financial investments

299,747,250

305,299,752

1,410,124,941

586,181,956

336,346,249

2,937,700,148

Debt securities

268,969,894

1,322,232,348

585,021,323

336,346,249

2,512,569,814

held to maturity

12,364,163

57,517,081

65,706,297

21,973,192

157,560,733

at fair value through proﬁt or loss

49,754,895

263,687,277

112,089,222

5,933,801

431,465,195

available for sale

206,850,836

1,001,027,990

407,225,804

302,447,617

1,917,552,247

loans and receivables

5,991,639

Equity securities

293,369,717

422,663

37,159,397

8,884

330,960,661

at fair value through proﬁt or loss

112,613,404

available for sale

180,756,313

422,663

37,159,397

8,884

218,347,257

Derivatives

20,317

Loans and receivables

546,233

35,907,195

50,733,196

1,151,749

88,338,373

Other ﬁnancial investments

5,810,983

Unit-linked life insurance contract investments

594,159,007

7,191,213

12,620,647

5,633,332

13,287

619,617,486

at fair value through proﬁt or loss

594,159,007

7,191,213

12,620,647

5,633,332

13,287

619,617,486

available for sale

loans and receivables

Insurance technical provisions transferred to reinsurers

707,317

111,030,024

45,868,052

13,893,756

3,340,741

174,839,890

Operating receivables (including tax receivables)

19,462,809

173,998,442

18,838,077

1,005,010

213,304,339

Cash

60,027,240

22,294,390

82,321,630

Total ﬁnancial assets

974,103,623

619,813,821

1,487,451,717

606,714,054

339,700,278

4,027,783,493

FINANCIAL LIABILITIES

Subordinated liabilities

49,471,831

Insurance technical provisions

3,704,868

810,272,794

715,686,591

333,267,267

713,436,864

2,576,368,384

Insurance technical provisions for unit-linked life insurance contracts

526,332,718

3,410,853

16,097,832

22,339,710

54,122,285

622,303,398

Other ﬁnancial liabilities

949,088

2,106,282

236,919

–206,664

3,085,647

Total ﬁnancial liabilities

530,986,674

815,789,929

732,021,342

355,400,313

817,031,002

3,251,229,260

The Group’s total ﬁnancial assets exceeded its total ﬁnancial liabilities also in 2022. The surplus is

presented in the maturity buckets of 1–5 years, 5–10 years and with undeﬁned maturity. In other

buckets, the value of assets was below the value of liabilities. The vast majority of the Group’s assets is

invested in highly liquid investments, which also provides the coverage of liabilities in maturity buckets

before the bucket into which they are classiﬁed in the table shown. The insurance technical provisions

take into account the maturity based on forecast cash ﬂows. Therefore, neither deﬁcit in individual

maturity buckets nor payments of liabilities before the maturity date present a liquidity risk.

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Financial assets and liabilities of Zavarovalnica Triglav by contractual maturity (EUR)

Not deﬁned

Up to 1 year

1 to 5 years

5 to 10 years

Over 10 years

Total

FINANCIAL ASSETS

Financial investments

154,412,843

180,127,401

863,631,863

237,789,321

189,226,441

1,625,187,870

Debt securities

162,218,573

858,319,994

237,048,403

189,226,441

1,446,813,411

held to maturity

3,972,138

142,330,844

53,855,301

27,498,690

227,656,974

at fair value through proﬁt or loss

12,339,169

54,658,756

1,246,440

434,233

68,678,599

available for sale

145,907,265

661,330,393

181,946,662

155,311,080

1,144,495,399

loans and receivables

5,982,438

Equity securities

151,148,306

at fair value through proﬁt or loss

18,247,899

available for sale

132,900,407

Derivatives

Loans and receivables

17,908,828

5,311,870

740,918

23,961,616

Other ﬁnancial investments

3,264,537

Unit-linked life insurance contract investments

484,822,314

1,055,933

2,271,907

2,467,150

1,544

490,618,848

at fair value through proﬁt or loss

484,822,314

1,055,933

2,271,907

2,467,150

1,544

490,618,848

available for sale

loans and receivables

Insurance technical provisions transferred to reinsurers

109,819,057

53,644,423

13,527,531

3,151,930

180,142,941

Operating receivables (including tax receivables)

198,462,281

Cash

23,065,242

Total ﬁnancial assets

662,300,400

489,464,672

919,548,193

253,784,002

192,379,916

2,517,477,183

FINANCIAL LIABILITIES

Subordinated liabilities

49,522,163

Insurance technical provisions

533,549,983

549,994,070

178,032,154

416,172,259

1,677,748,466

Insurance technical provisions for unit-linked life insurance contracts

449,399,980

866,336

5,260,288

8,694,816

31,461,383

495,682,803

Other ﬁnancial liabilities

16,615

Total ﬁnancial liabilities

449,399,980

534,432,933

555,254,358

186,726,970

497,155,806

2,222,970,046

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Zavarovalnica Triglav as at 31 Dec. 2021

Not deﬁned

Up to 1 year

1 to 5 years

5 to 10 years

Over 10 years

Total

FINANCIAL ASSETS

Financial investments

207,307,887

178,362,414

875,493,902

420,843,793

286,671,983

1,968,679,979

Debt securities

175,031,547

854,813,120

420,023,044

286,671,983

1,736,539,694

held to maturity

10,423,856

49,873,577

65,706,297

14,942,503

140,946,233

at fair value through proﬁt or loss

15,282,149

101,084,076

55,128,541

3,675,459

175,170,224

available for sale

149,325,542

703,855,468

299,188,206

262,062,381

1,414,431,597

loans and receivables

5,991,639

Equity securities

204,009,208

at fair value through proﬁt or loss

31,631,419

available for sale

172,377,789

Derivatives

20,317

Loans and receivables

3,330,867

20,680,782

820,749

24,832,398

Other ﬁnancial investments

3,278,362

Unit-linked life insurance contract investments

529,598,379

4,477,899

2,755,241

2,584,215

2,237

539,417,972

at fair value through proﬁt or loss

529,598,379

4,477,899

2,755,241

2,584,215

2,237

539,417,972

available for sale

loans and receivables

Insurance technical provisions transferred to reinsurers

86,954,349

38,199,558

8,394,428

2,529,622

136,077,957

Operating receivables (including tax receivables)

105,681,286

Cash

13,912,991

Total ﬁnancial assets

750,819,257

375,475,948

916,448,701

431,822,437

289,203,842

2,763,770,185

FINANCIAL LIABILITIES

Subordinated liabilities

49,471,831

Insurance technical provisions

516,066,665

562,566,480

222,178,125

439,561,917

1,740,373,186

Insurance technical provisions for unit-linked life insurance contracts

499,681,626

843,819

5,022,362

8,158,599

26,428,645

540,135,052

Other ﬁnancial liabilities

1,684,403

Total ﬁnancial liabilities

499,681,626

518,594,886

567,588,842

230,336,724

515,462,393

2,331,664,472

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.6 Operational risks

3.6.1 Description of risk and its management

Operational risks are the risks of loss arising from inadequate or failed internal processes, personnel or

systems, or from external events and their impact, both within the Company or in other Group companies.

As part of the risk appetite, which is the main guideline for operational risk management, high

standards for ensuring compliance with the law and zero tolerance for internal criminal acts and

fraud, including corruption, were set. The Company aims to ensure an appropriate level of information

security (conﬁdentiality, integrity and availability) for all information as it represent Company’s business

asset, and in doing so follows good practices in information security, taking into account the levels of

information security risks deﬁned as acceptable for each type of information.

The Group’s operational risks are ever-present; therefore it is of key importance to identify and manage

the most material in a timely manner, limiting them cost-effectively according to the deﬁned tolerance.

The aim of operational risk management is to prevent their occurrence, quickly and effectively remedy

the consequences of realised operational loss events, as well as mitigate and prevent business damage

in a professional, diligent and ethical manner. Here, the greatest emphasis is placed on key business

processes and types of operational risks. Recently, cyber, regulatory and human resource risks have

come to the fore. Operational risks are assessed based on all available information, such as estimates

of potential risks by business process groups, realised operational loss events, key indicators of these

risks and other relevant information from employees and key functions. In 2021, the Company

implemented

GRC/IRM software (governance, risk, compliance/integrated risk management)

to collect

and manage data as well as report on operational risks more comprehensively. This tool also supports

compliance and internal audit processes for an even more coordinated operation of key functions in

risk management processes and a more responsive overview. The Operational Risk Committee plays

an important role in monitoring operational risks; it deals with any identiﬁed (potential or realised)

material risks and takes appropriate action.

When assessing exposure and managing operational risks, internal controls for their management are

inventoried by each business process. The priorities of the internal control system are as follows:



efﬁciency, reliability and continuity of business processes;



ensuring compliance of operations with the internal acts and legal regulations;



accuracy and reliability of ﬁnancial and accounting reporting and



information and property protection.

In accordance with the principles of proportionality and materiality, Zavarovalnica Triglav transfers

the operational risk management system to subsidiaries, all of which regularly report on realised

operational loss events and other material operational risks.

Ensuring business continuity and functioning of systems material for smooth business process

implementation

As part of operational risk management,

the business continuity management system

was set up

to ensure continuity of key business processes. It comprises all key components relevant to business

continuity, particularly ensuring key staff, work locations and resources, which includes the operation of

information and communication technology with key applications. Business continuity plans for critical

business processes and IT disaster recovery plans are regularly revised, upgraded and tested. Among

others, the business continuity management system also deﬁnes measures to be taken in the case of

extraordinary events that cause or could cause interruptions or disruptions in business processes. The

Company has set up:



a crisis management team, which is activated in the case of extraordinary events that cause a major

interruption or disruption in business processes;



a disaster recovery team for extraordinary events that cause major disruption to ICT services;



recovery teams for the Company’s head ofﬁce and regional units, which are activated in the event

the accessibility or operation in an individual commercial building or regional unit is interrupted.

As part of operational risks, events related to business interruptions and disruptions are also monitored.

3.6.2 Risk in 2022

Through proactive management of operational risks, any shortcomings, changes and trends in the

internal and external environments that may affect their increase are promptly identiﬁed. Such an

approach allowed the Company to respond quickly and effectively even in emergency situations such

as the COVID-19 pandemic and the war in Ukraine. More attention was paid to the perceived growing

risks and, when necessary, appropriate measures were taken to prevent them from materialising.

The risks were mainly: the absence of key employees or simultaneous absence of many employees

due to illness, the need to quickly adjust organisation of work and execution of business processes,

additional information risks due to working from home and the war in Ukraine, regulatory changes

due to government emergency measures, as well as the expansion and implementation of additional

restrictive measures against Russia and Belarus at EU and OFAC levels.

The Company has not yet suffered a loss due to

cybersecurity incidents

; however, it is aware of their

growing threat and being exposed to them. Changes brought about by the pandemic, remote work, the

war in Ukraine and increasing regulatory requirements contributed to this. Accordingly, the information

security system is regularly maintained and further upgraded. In order to step up the identiﬁcation of our

vulnerability and be better prepared for such incidents, the biggest cybersecurity threats and the Group’s

business segments that would be most affected were examined in greater detail as part of own risk and

solvency assessment in 2022. Measures to improve information security were designed to further reduce

the aforementioned risks and ensure their even more proactive monitoring and treatment.

The Group is also exposed to

regulatory changes risk

in other areas. Such an example is the signiﬁcant

expansion and implementation of additional restrictive measures at EU and OFAC levels as a result of

the war in Ukraine, as well as the risks due to rapid adjustment of remote business with (potential)

Risk proﬁle

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

clients. Also, the Group continues to be exposed to outsourcing risks and risks relating to the conduct

of insurance business in foreign markets. Regulatory risk is managed by promptly taking into account

legislative changes in business processes, regular monitoring of business practices, the positions of

supervisory and other state bodies, and participating in regular and extraordinary Slovenian Insurance

Association procedures.

In addition, attention is paid to the general human resource risk of recruiting workers in shortage

occupations (see Section

4. Triglav Group strategy and plans (Challenges and opportunities of today)

and Section

12.4.2 Responsibility to employees in the Business Report

for more information).

Zavarovalnica Triglav has an effective

risk management system for outsourcing

. This ensures that

operational and other risks related to outsourcing do not increase excessively. Internal rules require that

risks are identiﬁed and assessed before concluding a new business with outsourcer, regularly monitored

and, if necessary, action is taken to mitigate them. The Company has two outsourced businesses: the

subsidiary Triglav Skladi is the outsourcer in the management of assets of PDPZ Drzni and Zmerni

guarantee funds and the managing general agent (MGA) is the outsourcer for insurance sale and claim

settlement in the Polish market. On behalf and for the account of the Company, the MGA – directly

and by providing a network of contractors (agents and agency companies) – ensures the provision of

insurance distribution services and carries out, using own and external resources, claim settlement

procedures and own general insurance administration. Furthermore, some Company activities are

currently deﬁned as partly outsourced, meaning they have certain elements of outsourced activities,

while the remaining (not outsourced) part of the business process is managed with own resources. In

terms of content, these businesses relate mainly to contractual insurance agency services (selling via

agencies) and the provision of hardware and software (the maintenance of software and IT systems).

A revision of outsourcing rules is underway, which will include, in addition to the management of

outsourced activities, the management of other key and important outsourced services.

Ensuring business continuity and functioning of systems material for smooth business process

implementation

In the reporting year, the Company focused on the management of information security risks and

business disruption and interruption. In past years, the business continuity management system was

already upgraded, as after the pandemic, information of employee substitution was added because

human resource risks were recognised as very relevant (especially the possibility of a high number of

absent employees, absence of key employees and employee overload). Risk concentration was examined

in terms of key processes and their smooth and continuous implementation. The latter requires

a sufﬁcient number of available employees, locations and resources, among which ICT resources are

key. In order to identify such risks in detail, an overview was made of the connections between key

processes, employees, external ICT and other providers, ICT resources that support the operation of part

or the entire process or several processes, and locations. Most subsidiaries have also already developed

or are planning to develop such an overview to identify the largest concentrations, which will be

followed by ﬁndings at Group level.

Business continuity plans were upgraded with current scenarios and then tested, which also applies to

IT disaster recovery plans.

3.7 Non-ﬁnancial risks

3.7.1 Description of risk and its management

Non-ﬁnancial risks

important to the Triglav Group’s operations include strategic risks, reputational risk,

Group risk and sustainability risks. Non-ﬁnancial risks usually originate from the external environment

and are very closely linked to other risks, especially operational. Usually they occur due to several

realised factors both inside and outside the Group.



Strategic risks

are the risks of loss due to adverse business decisions, improper implementation

of adopted strategic decisions and insufﬁcient responsiveness to changes in the business

environment. They also include part of legal and regulatory risks arising from key changes in the

Group’s business environment.



Reputational risk

is the risk of loss of existing or future business or goodwill due to a negative

opinion of the Group held by its clients, business partners, employees, shareholders, investors,

supervisory and other government bodies, and others concerned or the general public.

Effective reputational risk management allows the Company to retain the leading position in the

market, maintain or increase market capitalisation, resolve potential crises with greater ease and

remain resilient in an uncertain situation. It ensures the trust, loyalty and satisfaction of stakeholders.



Group risks

arise from the business model of the Company, which is the parent company or a group

of related parties. They include risks that might threaten the achievement of strategic objectives due

to an inefﬁcient governance system and insufﬁcient understanding of the business environment

of the Group members. The risk proﬁle is also affected by the review and treatment of large

transactions between related companies and the complexity of concentration risk management. All

these risks can materialise in the form of major or minor deviations from the business and ﬁnancial

plans due to losses incurred or lost business opportunities.



Sustainability risks

(also ESG risks) are a set of risks of the Group arising from environmental, social and

governance factors, and may have a negative impact on the ﬁnancial position or solvency of the Group.

Environmental risks

are divided into physical risks and transition risks. Physical risks are the risks of

a ﬁnancial loss due to extreme weather events or other environmental impacts related to climate

change. Transition risk is associated with risks arising from changes in business or the environment,

due to measures to promote the transition to a low-carbon economy in order to reduce the human

impact on climate change.

Social risks

mainly include risks arising from the way the Company and the Group companies operate

in relation to the requirements of the wider social environment, in particular ensuring diversity and

equal opportunities for various stakeholders, safety, health and satisfaction of employees, and good

relations with clients, suppliers and outsourcers.

Governance risks

are associated with an inappropriately or inadequately established governance

system, especially in the ﬁeld of environmental and social aspects.

They include the legality of

Risk proﬁle

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Accounting Report

190

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

business operations, corporate governance standards, including the risk management system and

internal control system, remuneration of the company’s management, used business practices and

the investor relations policy.

More activities are presented Section

12. Sustainable development at the Triglav Group

of the

Business Report.

Non-ﬁnancial risks are risks that, due to their nature, cannot be reduced, addressed or mitigated with

dedicated capital. The standard formula does not cover them.

To manage reputational risk, an assessment method is used which takes into account additional aspects

that may negatively affect the Group’s reputation. They are divided into internal and external. With

a functioning internal control system, it is ensured that the Group’s operations are legal, professional

and ethical. The Group ensures the appropriate quality of services and products, achieves ﬁnancial goals,

properly manages relationships with its key stakeholders and implements sustainability commitments

or sustainable aspects of business. Furthermore, the Group respects the set environmental goals and

aims to respect unrestricted, healthy competition in the market. Maintaining a low reputational risk

score is key, as the Group set high goals in this area.

3.7.2 Risk in 2022

In order to assess reputational risk and the adequacy of the Group’s actions, key stakeholders’ views

of the Group are regularly surveyed. In addition, the Company follows in detail external media

announcements, monitors the strength of the Triglav brand, measures the satisfaction of employees

and clients, and analyses feedback from other stakeholders. Satisfaction of key stakeholders is

monitored with various indicators. Employee satisfaction is measured using the ORVI index (see

Section

12.4.2.4 Care for employee satisfaction

for more information), and quality client satisfaction

management by the NPS indicator (see Section

12.4.1.1 Client satisfaction

for more information).

In order to maintain the reputation of the Group, care is taken to achieve the target credit rating

(see Section

6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav

for more information).

Assessments of all aforementioned indicators for 2022 show a low reputational risk.

In 2022, the Group’s sustainability risk management system continued to be upgraded, mainly by

improving data quality and deﬁning methodologies, indicators and reporting on environmental risks.

It is assessed that environmental risks are the most material among sustainability risks for the Group.

They mainly include emerging risks that may have long-term effects. They were particularly carefully

examined in the framework of own risk and solvency assessment. In order to assess climate risks

(covering both transition risks and physical risks), a qualitative and quantitative assessment of the

effects of climate change on the business operations of the Company and the Group was performed.

According to the qualitative analysis, speciﬁc climate change impacts could be material for the

Company and the Group. This applies especially to transition risk on the investment side and to physical

risks on the liabilities side, where only ﬂoods in Slovenia were identiﬁed as a signiﬁcant event. Based

on these ﬁndings, a quantitative impact assessment of effects on the capital adequacy of both the

Company and the Group was carried out. The Company assessed that action needs to be taken in due

time, primarily with respect to improving the quality of data on active reinsurance and real property

transactions. Regular measurement, management and monitoring of these risks must also be set up.

See

Challenges and opportunities of today in the Business Report

for more information.

3.8 Future risks

In terms of risks and capital adequacy, Zavarovalnica Triglav and the Triglav Group ended 2022 within

the framework set out in the Risk Appetite Statement. The Company also remains highly liquid.

Regarding inﬂation, it is currently assumed that it will return to the target range within two years.

However, the Company is aware of the possibility that elevated inﬂation may persist longer than

anticipated. In this case, central banks could respond by further raising interest rates and pursuing

a tight monetary policy. Excessive responses, however, could lead to the cooling of the economy and

a recession. As a result, a debt crisis could develop with increased credit spreads, lower growth or falling

market prices of equity investments. The cooling of the economy and increased volatility in the ﬁnancial

markets would adversely affect the Company’s operations, as it could lead to market risks materialising.

With higher inﬂation, there are also risks associated with higher prices of services and rising costs,

which could affect the proﬁtability of insurance, especially in the segments where premium change is

not possible. As a result, the combined ratios and the number of surrenders of life insurance policies

with a savings component may increase.

A deep recession could have a negative impact on insurance demand and insurance premium, which

would affect performance and increase

liquidity risk

– both due to the potential reduction of inﬂows

from the insurance business and due to lower market liquidity of the investment portfolio.

In the coming year, market, underwriting and credit risks could materialise with a signiﬁcant potential

impact on the Group’s operations. With regard to

market risks

, particularly an increase in spread

risk could arise due to the aggravated economic situation or deteriorating credit ratings of issuers of

securities. Negative developments in stock markets and a possible decline in the value of real property

may also be expected. An increase in interest rate risk due to expected rising interest rates would have

a negative impact on both the Company and the Group. This could then manifest in a decrease in the

value of investments. In the context of

underwriting risks

, the Company will consistently monitor

premium risks, i.e. the adequacy of the pricing policy and with respect to

credit risks

, the payment

discipline of receivables and the creditworthiness of important partners.

As part of testing the sensitivity of the credit portfolio of both the Company and the Group, the

parameters that would have a material impact on the Company’s and the Group’s business in the coming

years were examined. According to the analysis, the credit ratings of partners (banks and reinsurance

companies) and the share of payments of insurance and subrogation receivables can have a signiﬁcant

impact on business. In the event of a deterioration in the credit rating of our largest bank partner by one

notch at the same exposure, the average credit rating of all bank partners would not change. The same

applies in the event of a deterioration in the credit rating of our largest reinsurance partner.

Risk proﬁle

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Accounting Report

191

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The Company’s sensitivity to the payment discipline of receivables was tested by reducing the expected

share of payments for 2023. This share was deﬁned according to its lowest level in the last ﬁfteen years

(during the 2012 debt crisis). This reduction would not have a signiﬁcant impact on the Company’s

operations, as expected payments would be EUR 1.1 million lower.

A sensitivity analysis shows potential current impacts on the Group’s capital in the case of a loss event,

which would translate into as a sudden rise in interest rates by 150 basis points, a drop in equity and

real property exposures, and the deterioration of the claims and expense ratios by 1 percentage point.

Should this adverse scenario be realised, the Group’s capital would decrease by EUR 148.2 million, i.e.

by EUR 124.2 million as a reduction of fair value reserves and EUR 24 million as a reduction due to the

impact on proﬁt or loss.

In the coming year, the risk management system will be developed further. The primary focus will be on

the areas where increased risk trends will be identiﬁed. Some development activities will also be shaped

by legislative and accounting changes.

Sensitivity analysis as at 31 December 2022* (EUR)

Triglav Group

Zavarovalnica Triglav

Impact on fair value reserves

Impact on proﬁt or loss

Total impact on capital

Impact on fair value reserves

Impact on proﬁt or loss

Total impact on capital

Spread risk (50 bp)

–37,891,369

–748.462

–38,639,831

–24,815,992

–748.462

–25,564,454

Interest rate risk (+100 bp)

–74,225,337

–1,380,003

–75,605,340

-48,294,995

–1,480,850

–49,775,844

Equity risk (–10%)

–12,110,607

–11,367,059

–23,477,666

–11,750,377

–3,364,453

–15,114,831

Property risk (–5%)

–1,173,430

–1,099,860

Combined ratio risk (+1 pp)

–9,298,075

–4,298,206

Total

–124,227,313

–23,967,029

–148,194,342

–84,861,364

–10,991,831

–95,853,195

* The effects shown do not include the tax aspect and the indirect impact of the change in these assets on liabilities (for life insurance).

Contents

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Risk Management

Accounting Report

192

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Accounting Report

Contents

Statement of management's responsibilities

193

Independent auditor's report

194

Financial statements

198

1.1

Statement of ﬁnancial position

198

1.2

Income statement

199

1.3

Other comprehensive income

200

1.4

Statement of changes in equity

201

1.5

Cash ﬂow statement

203

Notes to the ﬁnancial statements

204

2.1

Proﬁle of Zavarovalnica Triglav and Triglav Group

204

2.2

Bases for the preparation of ﬁnancial statements

210

2.3

Bases for consolidation

210

2.4

Foreign currency translation

211

2.5

Signiﬁcant accounting policies

212

2.6

Signiﬁcant accounting judgments, estimates and

assumptions

225

2.7

Risk management

227

2.8

Tax policy

229

2.9

Segment reporting

229

2.10

The impact of new or amended standards on

the preparation of ﬁnancial statements

239

Notes to the statement of ﬁnancial position

242

3.1

Intangible assets

242

3.2

Property, plant and equipment

244

3.3

Investment property

246

3.4

Right of use assets

248

3.5

Investments in subsidiaries

249

3.6

Investments in associates and joint ventures

250

3.7

Financial investments

252

3.8

Unit-linked insurance assets

255

3.9

Reinsurers' share of technical provisions

256

3.10

Receivables

257

3.11

Other assets

261

3.12

Cash and cash equivalents

261

3.13

Non-current assets held for sale

261

3.14

Equity

262

3.15

Subordinated liabilities

263

3.16

Insurance technical provisions and insurance

technical provisions for unit-linked life insurance

contracts

264

3.17

The liability adequacy test (LAT) for life insurance

271

3.18

The liability adequacy test (LAT) for non-life

insurance

272

3.19

Provisions for employee beneﬁts

273

3.20

Other provisions

275

3.21

Deferred tax assets and liabilities

275

3.22

Other ﬁnancial liabilities

276

3.23

Lease liabilities

276

3.24

Operating liabilities

276

3.25

Other liabilities

277

Notes to the income statement

278

4.1

Premium income

278

4.2

Income from investments

281

4.3

Expenses from investments

281

4.4

Gains/losses from changes in the fair value of

ﬁnancial assets

281

4.5

Net realised gains and losses

282

4.6

Other insurance income

282

4.7

Other income

282

4.8

Claims

283

4.9

Reinsurance result

288

4.10

Change in other insurance-technical provisions

288

4.11

Expenses for bonuses and discounts

288

4.12

Expenses

288

4.13

Other expenses from insurance operations

293

4.14

Other expenses

293

4.15

Income tax expense

294

Other information

296

5.1

Transition of the application of the new standard

IFRS 17 – Insurance contracts

296

5.2

Transition of the application of the new standard

IFRS 9 – Financial instruments

302

5.3

Fair value measurement

305

5.4

Additional notes to the cash ﬂow statement

308

5.5

Amounts spent on auditors

309

5.6

Government grants

309

5.7

Related party transactions

309

5.8

Members of the Management Board and

Supervisory Board

311

5.9

Off balance sheet items

312

5.10

Major legal and arbitration disputes

313

5.11

Events after the reporting period

313

Statement of management's responsibilities

Business Report

Risk Management

Accounting Report

193

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Statement of management's responsibilities

The Management Board herewith conﬁrms the ﬁnancial statements Zavarovalnica Triglav, d.d. and Triglav Group for the year ended

31 December 2022, and the accompanying accounting policies and notes to the accounting policies.

The Management Board is responisible for preparing the Annual Report so that it is true and fair presentation of the Company's

and Group's assets and liabilities, ﬁnancial position and proﬁt for the year ended 31 December 2022 in accordance with

International Financial Reporting Standards as adopted by the EU.

The Management Board additionally conﬁrms that the appropriate accounting policies were consistently used and that the

accounting estimates were prepared accoring to the principles of prudence and good management. The Management Board

furthermore conﬁrms that the ﬁnancial statements, together with the notes are prepared on a going concern basis and that they

comply with the applicable legislation and International Financial Reporting Standards as adopted by the EU.

The Management Board conﬁrms that the Business Report includes a fair presentation of the development and ﬁnancial position

of the Company and the Group, including a description of the major risks to which the Company and the Group are exposed to.

The Management Board is also responsibile for appropriate accounting practices, for the adoption of appropriate measures for the

protection of property, and for the prevention and identiﬁcation of fraud and other irregularities or illegal acts.

The tax authorities may, at any time within the period of ﬁve years since the day the tax become chargeable, review the operations

of the Company, which may result in additional tax liabilities, default interest and penalties related to corporate income tax and/or

other taxes or levies. The Management Board of the Company is unaware of any circumstances that could potentially result in any

such signiﬁcant liability.

Andrej Slapar

President of the Management Board

Tadej Čoroli

Member of the Management Board

Blaž Jakič

Member of the Management Board

Uroš Ivanc

Member of the Management Board

Marica Makoter

Member of the Management Board

Independent auditor's report

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Risk Management

Accounting Report

194

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Independent auditor's report

Independent auditor's report

Business Report

Risk Management

Accounting Report

195

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Independent auditor's report

Business Report

Risk Management

Accounting Report

196

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Independent auditor's report

Business Report

Risk Management

Accounting Report

197

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Financial statements

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Risk Management

Accounting Report

198

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

1. Financial statements

100

1.1 Statement of ﬁnancial position

in EUR

Triglav Group

Zavarovalnica Triglav

Notes

31 December 2022

31 December 2021

31 December 2022

31 December 2021

ASSETS

4,128,824,919

4,374,353,616

2,920,466,482

3,118,944,094

Intangible assets

3.1

112,459,749

107,184,415

70,414,326

67,022,027

Property, plant and equipment

3.2

107,998,468

108,655,212

67,285,004

65,143,307

Non-current assets held for sale

3.13

2,182,419

3,812,044

Deferred tax assets

3.21

40,971,447

927,425

34,667,180

Investment property

3.3

68,377,495

75,110,973

43,377,173

43,840,055

Right of use assets

3.4

10,367,625

10,933,109

3,940,725

4,548,298

Investments in subsidiaries

3.5

185,360,343

131,924,683

Investments in associates

3.6

37,810,184

36,031,346

41,951,871

41,693,997

–

accounted for using the equity method

37,810,184

36,031,346

– measured at fair value

41,951,871

41,693,997

Financial investments

3.7

2,593,109,846

2,937,700,150

1,625,187,871

1,968,679,979

– loans and deposits

126,526,363

98,104,537

31,856,441

32,521,523

– held to maturity

456,469,434

157,560,733

227,656,974

140,946,233

– available for sale

1,810,796,092

2,137,609,082

1,278,747,957

1,588,390,263

–

recognised at fair value through proﬁt and loss

199,317,957

544,425,798

86,926,499

206,821,960

Unit-linked insurance assets

3.8

571,866,521

619,617,488

490,618,848

539,417,972

Reinsurers’ share of technical provisions

3.9

209,799,017

174,839,890

180,142,940

136,077,958

Receivables

3.10

269,140,646

212,376,909

152,064,970

105,169,567

–

receivables from direct insurance operations

145,702,112

116,855,207

98,739,720

73,516,574

–

receivables from reinsurance and coinsurance operations

81,261,176

67,200,932

37,156,172

23,522,340

– current tax receivables

6,704,693

4,127,384

564,166

– other receivables

35,472,665

24,193,386

16,169,078

7,566,487

Other assets

3.11

6,280,050

4,843,025

2,389,990

1,513,260

Cash and cash equivalents

3.12

98,461,452

82,321,630

23,065,241

13,912,991

EQUITY AND LIABILITIES

4,128,824,919

4,374,353,616

2,920,466,482

3,118,944,094

Equity

3.14

752,798,863

932,986,869

552,089,340

675,221,933

Controlling interests

749,398,341

930,511,224

552,089,340

675,221,933

– share capital

73,701,392

– share premium

50,304,674

50,283,747

53,412,884

– reserves from proﬁt

481,833,959

421,633,959

464,762,643

404,562,643

– treasury share reserves

364,680

– treasury shares

-364,680

– fair value reserve

-129,532,451

77,834,278

-103,556,856

55,884,634

– net proﬁt brought forward

225,893,107

234,588,994

3,497,205

50,944,831

–

net proﬁt/loss for the year

50,259,978

75,439,847

60,272,072

36,715,549

– currency translation differences

-3,062,318

-2,970,993

Non-controlling interests

2.1.4

3,400,522

2,475,645

Subordinated liabilities

3.15

49,522,163

49,471,831

49,522,163

49,471,831

Insurance technical provisions

3.16

2,519,079,596

2,576,368,384

1,677,748,467

1,740,373,185

– unearned premiums

414,289,158

370,043,725

276,301,501

246,017,849

– mathematical provisions

1,356,890,816

1,432,613,660

944,548,259

1,008,319,155

– claims provisions

688,788,186

694,498,311

426,901,198

446,567,255

– other insurance technical provisions

59,111,436

79,212,688

29,997,509

39,468,926

Insurance technical provisions for unit-linked insurance contracts

3.16

580,944,539

622,303,399

495,682,803

540,135,052

Provisions for employee beneﬁts

3.19

17,429,108

17,672,133

12,381,473

12,842,304

Other provisions

3.20

2,146,887

2,512,536

154,638

358,980

Deferred tax liabilities

3.21

259,455

9,377,034

4,212,732

Other ﬁnancial liabilities

3.22

1,873,559

3,085,647

22,640

1,690,586

Operating liabilities

3.24

93,775,550

63,341,658

67,460,551

34,861,554

–

liabilities from direct insurance operations

21,501,649

19,450,557

11,547,677

10,182,945

–

liabilities from reinsurance and co-insurance operations

60,816,415

41,241,465

46,215,403

24,678,609

– current tax liabilities

11,457,486

2,649,636

9,697,471

Lease liabilities

3.23

10,767,382

11,274,806

4,054,668

4,643,844

Other liabilities

3.25

100,227,817

85,959,319

61,349,739

55,132,093

100

Notes on pages from 204 to 313 are part of ﬁnancial statements.

Financial statements

Business Report

Risk Management

Accounting Report

199

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

1.2 Income statement

in EUR

Triglav Group

Zavarovalnica Triglav

Notes

2022

2021

2022

2021

Net premium income

4.1

1,189,905,615

1,119,846,051

627,675,389

598,755,000

– gross written premium

1,479,557,087

1,352,975,550

868,863,623

794,350,103

– ceded written premium

-254,986,410

-220,949,875

-222,977,014

-187,969,749

–

change in unearned premium reserve

-34,665,062

-12,179,624

-18,211,220

-7,625,354

Income from investments in subsidiaries and associates

4.2

1,842,183

1,444,054

32,887,342

8,179,885

–

proﬁt on equity investments accounted for using the equity method

1,842,183

1,444,054

–

other income from investments in subsidiaries and associates

32,887,342

8,179,885

Income from investments

4.2

91,556,381

155,339,171

64,694,593

115,612,898

–

interest income calculated using the effective interest method

34,401,619

34,281,279

19,620,922

19,685,884

– gains on disposals

37,775,442

16,301,340

34,325,465

14,888,504

– other income from investments

19,379,320

104,756,552

10,748,206

81,038,510

Other income from insurance operations

4.6

59,934,985

48,794,300

58,536,290

45,387,033

– fees and commission income

49,184,889

38,916,088

50,904,726

38,196,377

–

other income from insurance operations

10,750,096

9,878,212

7,631,564

7,190,656

Other income

4.7

59,826,129

53,334,060

11,036,337

8,825,846

Net claims incurred

4.8

746,732,431

715,028,788

346,407,269

365,137,225

– gross claims settled

832,230,541

736,580,050

452,455,851

408,868,382

– reinsurers’ share

-59,907,680

-44,884,460

-49,939,407

-35,818,958

– changes in claims provisions

-32,975,668

16,152,394

-56,109,175

-7,912,199

–

equalisation scheme expenses for supplementary health insurance

7,385,238

7,180,804

Change in other insurance technical provisions (excluding ULI)

4.10

-79,041,779

-2,113,408

-56,716,599

-13,989,227

Change in insurance technical provisions for unit-linked insurance contracts

4.10

-43,787,917

112,661,349

-47,072,818

91,860,583

Expenses for bonuses and discounts

4.11

10,798,750

11,404,143

9,167,812

10,490,736

Operating expenses

4.12

301,928,130

266,857,908

194,264,584

170,334,866

– acquisition costs

211,429,288

184,911,170

142,569,005

124,268,560

– other operating costs

90,498,842

81,946,738

51,695,579

46,066,306

Expenses from investments in subsidiaries and associates

4.3

145,632

4,002,475

1,087,047

–

loss on investments accounted for using the equity method

145,632

–

other expenses from ﬁnancial assets and liabilities

4,002,475

1,087,047

Expenses from investments

4.3

201,644,899

31,832,786

149,433,105

18,366,687

–

loss on impairment of investments

9,034,736

33,628

6,433,441

–

loss on disposal of investments

50,341,763

7,122,739

46,526,684

6,870,017

– other expenses from investments

142,268,400

24,676,419

96,472,980

11,496,670

Other insurance expenses

4.13

59,496,583

51,915,940

27,910,368

25,298,497

Other expenses

4.14

70,753,966

58,379,653

27,075,891

22,485,637

– expenses from ﬁnancing

2,731,227

2,729,286

2,289,560

2,277,892

– other expenses

68,022,739

55,650,367

24,786,331

20,207,745

Proﬁt before tax

134,540,230

132,644,845

140,357,864

85,688,611

Income tax expense

4.15

24,323,552

19,679,152

19,885,791

12,273,062

NET PROFIT FOR THE PERIOD

110,216,678

112,965,693

120,472,073

73,415,549

Earnings per share (basic and diluted)

101

4.85

4.97

Net proﬁt/loss attributable to the controlling company

110,459,978

112,761,814

Net proﬁt/loss attributable to the non-controlling interest holders

-243,300

203,879

101

Basic earnings per share are calculated by dividing the shareholders' net proﬁt by the weighted average number of ordinary shares, excluding ordinary shares held by the

Company or the Group. The Group and the Company do not have dilutive potential ordinary shares, thus the basic and diluted earnings per share are the same.

Financial statements

Business Report

Risk Management

Accounting Report

200

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

1.3 Other comprehensive income

in EUR

Triglav Group

Zavarovalnica Triglav

Notes

2022

2021

2022

2021

Net proﬁt

for the year after tax

3.14

110,216,678

112,965,693

120,472,073

73,415,549

Other comprehensive income after tax

-208,116,859

-11,437,675

-159,484,615

-3,547,037

Items which will not be transferred in income statement in future periods

1,277,288

129,024

1,245,737

164,711

Actuarial gains/losses on deﬁned beneﬁt pension plans

3.19

1,277,288

129,024

1,245,737

164,711

Tax on items which will not be transferred in income statement

Items which could be transferred into income statement in future periods

-209,394,147

-11,566,699

-160,730,352

-3,711,748

Fair value gains/losses on available-for-sale ﬁnancial assets

3.7

-264,520,286

-40,682,514

-210,403,921

-32,679,481

–

net gains/losses recognized directly in fair value reserve

-224,832,237

-19,537,964

-171,620,525

-13,562,819

–

transfers from fair value reserve to income statement

-39,688,049

-21,144,550

-38,783,396

-19,116,662

Liabilities from insurance contracts with DPF

11,541,802

23,304,304

11,541,802

23,304,304

Currency translation differences

-93,590

170,440

Tax on other comprehensive income

43,677,927

5,641,071

38,131,767

5,663,429

COMPREHENSIVE INCOME OR LOSS FOR THE YEAR AFTER TAX

-97,900,181

101,528,018

-39,012,542

69,868,512

Controlling interest

-97,053,678

101,458,431

Non-controlling interest

-846,503

69,587

Financial statements

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Risk Management

Accounting Report

201

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

1.4 Statement of changes in equity

in EUR

Reserves from proﬁt

Triglav Group

Share capital

premium

Contingency

reserves

Legal and

statutory

reserves

Treasury share

reserves

Treasury

Other reserves

from proﬁt

Fair value

reserve

Net proﬁt

brought

forward

Net proﬁt/loss

Currency

translation

differences

Total equity

attributable to

the controlling

company

Non- controlling

interests

Total

As at 1 January 2021

73,701,392

50,271,107

640,340

20,266,352

364,680

-364,680

363,200,000

89,293,484

229,284,048

44,131,955

-3,140,104

867,648,574

2,503,373

870,151,947

Comprehensive income for the year after tax

-11,459,206

-13,289

112,761,814

169,111

101,458,431

69,587

101,528,018

a) Net proﬁt

112,761,814

203,879

112,965,693

b) Other comprehensive income

-11,459,206

-13,289

169,111

-11,303,383

-134,292

-11,437,675

Dividend payment

-38,608,421

Allocation of last year’s net proﬁt to net proﬁt brought forward

44,131,954

-44,131,954

Allocation of net proﬁt for the year to reserves from proﬁt

487,949

36,834,020

-37,321,969

Increase in legal and statutory reserves by proﬁt brought forward

205,298

-205,298

Reclassiﬁcation from statutory to other reserves from proﬁt

-652,926

652,926

Change in Group

12,640

-97,315

-84,675

As at 31 December 2021

73,701,392

50,283,747

640,340

20,306,673

364,680

-364,680

400,686,946

77,834,278

234,588,994

75,439,847

-2,970,993

930,511,224

2,475,645

932,986,869

Comprehensive income for the year after tax

-207,366,729

-55,601

110,459,978

-91,325

-97,053,677

-846,503

-97,900,181

a) Net proﬁt

110,459,978

-243,300

110,216,678

b) Other comprehensive income

-207,366,729

-55,601

-91,325

-207,513,655

-603,203

-208,116,859

Dividend payment

-84,030,139

-22,199

-84,052,338

Allocation of last year’s net proﬁt to net proﬁt brought forward

75,439,847

-75,439,847

Allocation of net proﬁt for the year to reserves from proﬁt

60,200,000

-60,200,000

Increase in legal and statutory reserves by proﬁt brought forward

Reclassiﬁcation from statutory to other reserves from proﬁt

-49,994

-1,135

-51,129

Change in Group

20,927

1,794,714

1,815,641

As at 31 December 2022

73,701,392

50,304,674

640,340

20,306,673

364,680

-364,680

460,886,946

-129,532,451

225,893,107

50,259,978

-3,062,318

749,398,341

3,400,522

752,798,863

Financial statements

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Risk Management

Accounting Report

202

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Reserves from proﬁt

Zavarovalnica Triglav

Share capital

Share premium

Legal and statutory

reserves

Other reserves

from proﬁt

Fair value reserve

Net proﬁt brought

forward

Net proﬁt/loss

Total

As at 1 January 2021

73,701,392

53,412,884

4,662,643

363,200,000

59,402,079

60,526,536

29,097,639

644,003,173

Comprehensive income for the year after tax

-3,517,445

-29,592

73,415,549

69,868,512

a) Net proﬁt

73,415,549

b) Other comprehensive income

-3,517,445

-29,592

-3,547,037

c) Dividend payment

-38,649,752

Allocation of last year’s net proﬁt to net proﬁt brought forward

29,097,639

-29,097,639

Allocation of net proﬁt for the year to reserves from proﬁt

36,700,000

-36,700,000

As at 31 December 2021

73,701,392

53,412,884

4,662,643

399,900,000

55,884,634

50,944,831

36,715,549

675,221,933

Comprehensive income for the year after tax

-159,441,490

-43,125

120,472,073

-39,012,542

a) Net proﬁt

120,472,073

b) Other comprehensive income

-159,441,490

-43,125

-159,484,615

Dividend payment

-84,120,050

Allocation of last year’s net proﬁt to net proﬁt brought forward

36,715,549

-36,715,549

Allocation of net proﬁt for the year to reserves from proﬁt

60,200,000

-60,200,000

As at 31 December 2022

73,701,392

53,412,884

4,662,643

460,100,000

-103,556,856

3,497,205

60,272,072

552,089,340

Financial statements

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Risk Management

Accounting Report

203

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

1.5 Cash ﬂow statement

in EUR

Triglav Group

Zavarovalnica Triglav

Notes

2022

2021

2022

2021

OPERATING CASH FLOW

Net proﬁt for the period

110,216,678

112,965,693

120,472,073

73,415,549

Adjustments:

42,863,811

63,556,712

-50,018,909

4,209,150

– depreciation and amortisation

26,637,016

23,556,292

17,097,319

14,336,508

–

changes in fair value of investments

136,543,090

-73,906,038

93,958,724

-67,375,401

–

other investment income and expenses

-27,987,036

-49,529,610

-38,105,079

-36,963,650

–

interest expenses and other expenses

2,625,553

2,729,286

472,995

3,508,152

– revaluation od other assets

1,947,123

2,607,602

632,779

1,304,005

– changes in technical provisions

-123,135,722

139,060,606

-143,961,438

77,471,473

– corporate income tax

26,233,787

19,038,574

19,885,791

11,928,063

Net income before changes in operating assets (a+b)

153,080,489

176,522,405

70,453,164

77,624,699

Changes in operating receivables

-35,496,451

-14,471,407

-37,677,895

-2,904,874

Changes in other assets

-4,420,233

2,972,861

-12,603,034

-454,701

Changes in liabilities

-8,771,198

-9,851,218

28,019,053

-4,224,674

Paid corporate income tax

-19,473,890

-17,814,509

-10,934,058

-16,008,593

Changes in net operating assets

-68,161,772

-39,164,273

-33,195,934

-23,592,842

Net cash from/ (used in) operating activities (c+d)

5.2

84,918,717

137,358,132

37,257,230

54,031,857

CASH FLOWS FROM INVESTING ACTIVITIES

Cash inﬂows from investing activities

1,060,042,718

1,093,015,888

866,067,369

945,312,943

Cash inﬂows from interest from investing activities

37,585,569

37,412,752

22,699,669

23,440,425

Cash inﬂows from dividends received and proﬁt sharing

6,151,738

5,653,046

37,802,746

12,494,301

Cash inﬂows from the disposal of intangible assets

Cash inﬂows from the disposal of property, plant and equipment

7,995,544

3,515,560

785,630

151,349

Cash inﬂows from the disposal of ﬁnancial investments

1,008,309,867

1,046,434,530

804,779,324

909,226,868

–

Cash inﬂows from the disposal of investments in subsidiaries and associates

–

Other cash inﬂows from disposal of ﬁnancial investments

1,008,309,867

1,046,434,530

804,779,324

909,226,868

Cash outﬂows from investing activities

-1,039,510,454

-1,186,871,319

-806,619,546

-965,578,127

Cash outﬂows for the purchase of intangible assets

-8,650,450

-7,877,065

-5,506,904

-6,931,001

Cash outﬂows for the purchase of property, plant and equipment

-8,981,115

-9,507,447

-5,474,025

-3,365,839

Cash outﬂows for the purchase of ﬁnancial investments

-1,021,878,889

-1,169,486,807

-795,638,617

-955,281,287

–

Cash outﬂows for the purchase of investments in subsidiaries and associates

-35,987

-4,465,325

-57,355,448

-7,039,617

–

Other cash outﬂows to acquire ﬁnancial investments

-1,021,842,902

-1,165,021,482

-738,283,169

-948,241,670

Net cash from/ (used in) investing activities (a + b)

5.2

20,532,264

-93,855,431

59,447,823

-20,265,184

CASH FLOWS FROM FINANCING ACTIVITIES

Cash inﬂows from ﬁnancing activities

Cash outﬂows from ﬁnancing activities

-89,334,516

-43,097,819

-87,552,803

-42,157,904

Cash outﬂows for paid interest

-2,625,553

-2,458,714

-2,266,933

-2,343,302

Cash outﬂows for payments of long-term ﬁnancial liabilities

Cash outﬂows for payments of short-term ﬁnancial liabilities

-2,656,625

-2,030,685

-1,165,822

-1,164,850

Cash outﬂows from dividends paid

-84,052,338

-38,608,420

-84,120,048

-38,649,752

Net cash from/ (used in) ﬁnancing activities (a + b)

5.2

-89,334,516

-43,097,819

-87,552,803

-42,157,904

Closing balance of cash and cash equivalents

3.12

98,461,452

82,321,630

23,065,241

13,912,991

E1.

Net cash ﬂow for the period

16,116,465

404,882

9,152,250

-8,391,231

E2.

Foreign exchange differences

23,357

17,084

Opening balance of cash and cash equivalents

3.12

82,321,630

81,899,664

13,912,991

22,304,222

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

204

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2. Notes to the ﬁnancial statements

2.1 Proﬁle of Zavarovalnica Triglav and

Triglav Group

2.1.1 About Zavarovalnica Triglav

Zavarovalnica Triglav, d.d. (hereinafter: Zavarovalnica Triglav or the Company or the controlling

company) is a public limited company, with its head ofﬁce at Miklošičeva 19 in Ljubljana, Slovenia. The

Company is entered in the Companies Register at the Ljubljana District Court.

Its shares are listed on the Ljubljana Stock Exchange, under the ticker symbol ZVTG. The Company’s

largest shareholders are Zavod za pokojninsko in invalidsko zavarovanje Slovenije (Pension and

Disability Insurance Institute of Slovenia) and Slovenski državni holding, d.d. (Slovenian Sovereign

Holding), which hold 34.47% and 28.09% of the share capital respectively.

Zavarovalnica Triglav is a composite insurance company that conducts life and non-life insurance

business. In accordance with the Pension and Disability Insurance Act (ZPIZ-2), the Company also

provides pension insurance and other ancillary services with regard to insurance products and pension

funds in the framework of life insurance.

In the life insurance segment, the following funds, which are kept separately, operated in 2022:



Skupina kritnih skladov PDPZ (registered number 5063345032), which includes three guarantee

funds, within which the lifecycle investment policy is implemented. The pension schemes for group

supplemental voluntary pension insurance with the designations PN–ZT–01/15–9, PN–ZT–03/15–9 and

PN–ZT–05/15–9 and for individual supplemental voluntary pension insurance with the designations

PN–ZT–02/15–9, PN–ZT–02/15–9, PN–ZT–04/15–9 and PN–ZT–06/15–9 are implemented in all three

guarantee funds. The following guarantee funds operate in Skupina kritnih skladov PDPZ:



Triglav PDPZ – zajamčeni guarantee fund (registered number 5063345029);



Triglav PDPZ – zmerni guarantee fund (registered number 5063345030);



Triglav PDPZ – drzni guarantee fund (registered number 5063345031);



PDPZ guarantee fund in the period of pension annuity payout – renta 1 (registered number

5063345028);



PDPZ guarantee fund in the period of pension annuity payout – renta 2 (registered number

5063345033);



guarantee fund backing unit-linked life insurance (registered number 5063345023).

The manager of the Triglav PDPZ – zmerni and Triglav PDPZ – drzni guarantee funds is Triglav Skladi d.o.o.

Zavarovalnica Triglav manages the rest of the abovementioned guarantee funds. Custodial services are

provided by the custodial bank.

2.1.2 Management and supervisory bodies

The Company has a two-tier governance system, according to which it is managed by the Management

Board whose work is monitored and supervised by the Supervisory Board. The Company’s management

and supervisory bodies are the General Meeting of Shareholders, the Supervisory Board and the

Management Board, and the following Supervisory Board committees: the Audit Committee, the

Appointment and Remuneration Committee, the Strategy Committee and the Nomination Committee.

In accordance with the Articles of Association, Zavarovalnica Triglav has a nine-member Supervisory

Board, whose members in 2022 were:



Andrej Andoljšek, Chairman,



Branko Bračko, Vice Chairman,



Peter Kavčič, Member,



Igor Stebernak, Member,



Tomaž Benčina, Member,



Jure Valjavec, Member,



Peter Celar, Member – Employee Representative,



Branko Gorjan, Member – Employee Representative, and



Igor Zupan, Member – Employee Representative.

On 9 December 2022, two Supervisory Board members of Zavarovalnica Triglav, Branko Bračko and

Peter Kavčič, notiﬁed the Company of their resignation as Supervisory Board members. In order to

ensure the proper implementation of nomination procedures, they are submitting an irrevocable letter

of resignation effective as of the date on which the Supervisory Board approves the Triglav Group’s

annual report for 2022, or as of 31 March 2023 at the latest. The effective date of their resignation

and termination of their term of ofﬁce as Supervisory Board members shall be the date of the regular

annual General Meeting of Shareholders (which, according to the Company’s ﬁnancial calendar for

2023, is planned to take place on 6 June 2023), but not later than 30 June 2023.

The Management Board directs, represents and acts on behalf of Zavarovalnica Triglav, independently

and on its own responsibility. In compliance with the Articles of Association, the Supervisory Board

appoints three to six Management Board members.

At its session on 17 October 2022, the Supervisory Board of Zavarovalnica Triglav agreed with the

proposal of the President of the Management Board to appoint Blaž Jakič a new Management Board

Member and approved the agreement on the termination of the term of ofﬁce of Management Board

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

205

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Member David Benedek, which entered into force as of 1 December 2022. Blaž Jakič was appointed for

a ﬁve-year term of ofﬁce, the decision entered into force on 2 March 2023. The ﬁve-year term of ofﬁce of

the Management Board Member Barbara Smolnikar ended on 17 October 2022.

In 2022, the Management Board was composed of:



Andrej Slapar, President,



Uroš Ivanc, Member,



Tadej Čoroli, Member,



Barbara Smolnikar, Member, until 17 October 2022



David Benedek, Member, until 1 December 2022



Marica Makoter, Member.

The powers of individual bodies are set out in the Companies Act (ZGD-1), and they are deﬁned in

greater detail in the Company's Articles of Association and the rules of procedure of individual bodies.

It is the responsibility of the Management Board to compile and approve the annual report. The

audited annual report is approved by the Supervisory Board. In the event that the Supervisory Board

fails to approve the annual report, the General Meeting of Shareholders decides on the adoption of

the annual report.

The Management Board approved the audited annual report for the ﬁnancial year ended

31 December 2022 on 10 March 2023. The annual report is published on the Company’s website

www.triglav.eu

2.1.3 Data on employees

In 2022, the Group employed an average of 5,286 employees (2021: 5,281), of which 2,231 were

employees of Zavarovalnica Triglav (2021: 2,243).

As at 31 December 2022, the Group employed 5,306 employees (31 December 2021: 5,246), of which

2,243 were employees of Zavarovalnica Triglav (31 December 2021: 2,246).

The number of employees within the Group and at Zavarovalnica Triglav based on their level of

education is shown in the table below.

Triglav Group

Zavarovalnica Triglav

Education level

31 December 2022

31 December 2021

31 December 2022

31 December 2021

2-5

2,204

2,226

772

803

6/1

528

534

363

379

6/2

809

781

458

438

1,529

1,491

551

528

8/1

214

211

8/2

TOTAL

5,306

5,264

2,243

2,246

Average number of employees

5,286

5,281

2,231

2,243

The average number of employees is calculated as the average number of employees as at the last

working day of the month.

2.1.4 About the Triglav Group

Zavarovalnica Triglav is the controlling company of the Triglav Group (hereinafter: the Group), therefore,

in addition to the separate ﬁnancial statements of the Company, it also compiles the consolidated

ﬁnancial statements of the Group.

The Group’s two key strategic activities are insurance and asset management. The Triglav Group is the

leading insurance and ﬁnancial group in Slovenia and the Adria region as well as one of the leading

groups in South-East Europe.

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

206

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Triglav Group subsidiaries

102

Equity stake (in %)

Share of voting rights (in %)

Tax rate

Company

Address

(in %)

ACTIVITY

2022

2021

2022

2021

Pozavarovalnica Triglav RE, d.d.

Miklošičeva cesta 19, Ljubljana, Slovenija

Reinsurance

100.00

Triglav, Zdravstvena zavarovalnica, d.d.

Pristaniška ulica 10, Koper, Slovenija

Insurance

100.00

Triglav Osiguranje, d.d., Zagreb

Antuna Heinza 4, Zagreb, Hrvaška

Insurance

100.00

Triglav Osiguranje, d.d., Sarajevo

Dolina 8, Sarajevo, Bosna in Hercegovina

Insurance

97.78

98.87

Lovćen Osiguranje, a.d., Podgorica

Ulica slobode 13a, Podgorica, Črna gora

Insurance

99.07

Lovćen životna osiguranja, a.d., Podgorica

Ulica Marka Miljanova 29/III, Podgorica, Črna gora

Insurance

99.07

Triglav Osiguranje, a.d.o., Beograd

Milutina Milankovića 7a, Beograd, Srbija

Insurance

100.00

Triglav Osiguranje, a.d., Banja Luka

Ulica Prvog krajiškog korpusa 29, Banja Luka, Bosna in Hercegovina

Insurance

100.00

Triglav Osiguruvanje, a.d., Skopje

Bulevar 8-mi Septemvri 16, Skopje, Severna Makedonija

Insurance

81.69

81.32

81.69

81.32

Triglav Osiguruvanje Život, a.d., Skopje

Bulevar 8-mi Septemvri 18, Skopje, Severna Makedonija

Insurance

97.38

96.26

97.38

96.26

Triglav penzisko društvo, a.d., Skopje

Bulevar 8-mi septemvri 18, Skopje, Severna Makedonija

Fund management

100.00

Triglav, pokojninska družba, d.d.

Dunajska cesta 22, Ljubljana, Slovenija

Fund management

100.00

Triglav INT, d.o.o.

Dunajska cesta 22, Ljubljana, Slovenija

Holding company

100.00

Triglav Skladi, d.o.o.

Dunajska cesta 20, Ljubljana, Slovenija

Fund management

100.00

Triglav Avtoservis, d.o.o.

Verovškova 60b, Ljubljana, Slovenija

Maintenance and repair of motor vehicles

100.00

Triglav Svetovanje, d.o.o.

Ljubljanska cesta 86, Domžale, Slovenija

Insurance agency

100.00

Triglav, Upravljanje nepremičnin, d.o.o.

Dunajska cesta 22, Ljubljana, Slovenija

Real estate management

100.00

Triglav Savjetovanje, d.o.o., Sarajevo

Dolina 8, Sarajevo, Bosna in Hercegovina

Insurance agency

97.78

Triglav Savjetovanje, d.o.o., Zagreb

Sarajevska cesta 60, Zagreb, Hrvaška

Insurance

100.00

Triglav Savetovanje, d.o.o., Beograd

Zelengorska 1g, Beograd, Srbija

Insurance agency

100.00

Autocentar BH, d.o.o.

Džemala Bijedića 165b, Sarajevo, Bosna in Hercegovina

Maintenance and repair of motor vehicles

97.78

98.87

97.78

Sarajevostan, d.o.o.

Džemala Bijedića 147, Sarajevo, Bosna in Hercegovina

Real estate management

90.95

91.97

90.95

Lovćen auto, d.o.o., Podgorica

Novaka Miloševa 6/2, Podgorica, Črna gora

Maintenance and repair of motor vehicle

99.07

Triglav upravljanje nekretninama, d.o.o., Zagreb

Ulica Josipa Marohnića 1/1, Zagreb, Hrvaška

Real estate management

100.00

Triglav upravljanje nekretninama, d.o.o., Podgorica

Džordža Vašingtona 44, Podgorica, Črna gora

Real estate management

100.00

Triglav upravljanje nekretninama, d.o.o., Sarajevo

Dolina 8, Sarajevo, Bosna in Hercegovina

Real estate management

100.00

97.78

100.00

97.78

Triglav Fondovi, d.o.o., Sarajevo

Ulica Mehmed paše Sokolovića 15, Sarajevo, Bosna in Hercegovina

Fund management

62.54

Triglav zdravje asistenca, d.o.o., Ljubljana

Dunajska cesta 22, Ljubljana, Slovenija

Other human health activities

100.00

Zavod Vse bo v redu

Miklošičeva cesta 19, Ljubljana, Slovenija

Corporate Social Responsibility Institute

100.00

102

All subsidiaries except institute Vse bo v redu, which is not material for the Group, are included in the consolidated ﬁnancial statements according to the full consolidation method. GRI 207-4.

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

207

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Condensed ﬁnancial statements of the Triglav Group companies

in EUR

Assets

Liabilities

Equity

Income

Net proﬁt/loss

Company

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Pozavarovalnica Triglav Re d.d., Ljubljana

391,600,201

362,467,179

304,900,543

266,915,458

86,699,658

95,551,721

283,059,307

228,079,978

6,956,723

11,324,430

Triglav, Zdravstvena zavarovalnica d.d., Koper

92,513,597

111,448,859

56,072,074

65,812,869

36,441,523

45,635,990

206,807,792

200,703,434

-1,212,580

6,379,174

Triglav Osiguranje d.d., Zagreb

196,962,193

196,173,329

171,156,174

166,478,465

25,806,019

29,694,864

103,991,820

96,269,515

-3,237,771

1,820,083

Triglav Osiguranje d.d., Sarajevo

83,825,109

76,491,259

63,527,655

56,377,177

20,297,454

20,114,082

40,978,095

36,219,946

1,347,979

1,296,180

Lovćen Osiguranje a.d., Podgorica

55,181,897

52,424,790

42,140,738

39,286,519

13,041,159

13,138,271

39,958,692

37,677,417

2,261,664

1,308,164

Lovćen životna osiguranja a.d., Podgorica

8,207,691

8,180,680

4,587,312

4,191,088

3,620,379

3,989,592

5,211,203

4,935,706

384,647

256,415

Triglav Osiguranje a.d.o., Beograd

105,743,031

101,307,828

81,512,923

74,849,135

24,230,108

26,458,693

87,961,160

79,849,221

1,457,188

3,585,281

Triglav Osiguranje a.d., Banja Luka

14,312,162

13,102,599

9,011,437

8,859,000

5,300,725

4,243,599

7,515,921

6,625,994

42,813

-302,774

Triglav Osiguruvanje a.d., Skopje

41,888,801

49,525,142

28,096,676

32,843,926

13,792,125

16,681,216

27,448,166

24,135,021

65,059

482,192

Triglav Osiguruvanje Život a.d., Skopje

11,551,111

7,907,892

6,494,782

3,649,158

5,056,329

4,258,734

6,221,044

3,409,223

36,002

-86,155

Triglav penzisko društvo a.d., Skopje

3,337,875

1,738,046

158,532

184,087

3,179,343

1,553,959

516,136

308,458

-658,783

-623,974

Triglav, pokojninska družba d.d., Ljubljana

444,936,228

416,477,600

387,166,335

397,380,084

57,769,893

19,097,516

49,173,044

57,784,500

-4,448,273

1,597,670

Triglav INT d.o.o., Ljubljana

67,880,648

71,128,059

23,950

33,581

67,856,698

71,094,478

977,783

-13,237,780

-1,253,106

Triglav Skladi d.o.o., Ljubljana

70,404,233

86,248,279

10,490,054

11,071,037

59,914,179

75,177,242

30,839,723

30,728,566

7,248,043

8,246,729

Triglav Avtoservis d.o.o., Ljubljana

1,280,681

1,298,820

1,129,950

1,168,153

150,731

130,667

3,159,777

2,508,476

9,835

1,967

Triglav Svetovanje d.o.o., Domžale

1,899,367

1,807,856

1,467,293

1,495,117

432,074

312,739

5,730,523

4,880,110

105,393

-209,070

Triglav, Upravljanje nepremičnin d.o.o., Ljubljana

29,168,602

32,393,981

3,490,986

3,296,282

25,677,616

29,097,699

15,994,120

3,740,839

10,527,057

288,055

Triglav Savjetovanje d.o.o., Sarajevo

268,100

341,689

258,192

338,995

9,908

2,694

695,685

700,024

7,213

-65,178

Triglav Savjetovanje d.o.o., Zagreb

54,398

236,485

91,415

146,759

-37,017

89,726

370,325

577,291

-126,522

42,090

Triglav Savetovanje d.o.o., Beograd

266,807

137,944

268,503

128,612

-1,696

9,332

688,500

698,454

-36,589

-26,889

Autocentar BH d.o.o., Sarajevo

2,574,026

2,775,450

530,338

763,557

2,043,688

2,011,893

1,775,595

1,720,885

82,925

63,082

Sarajevostan d.o.o., Sarajevo

1,890,498

1,624,805

709,061

666,977

1,181,437

957,828

2,314,825

2,855,026

223,609

800,106

Lovćen auto d.o.o., Podgorica

4,824,902

4,907,430

1,439,562

1,616,923

3,385,340

3,290,507

2,325,018

1,856,714

94,833

-428,084

Triglav upravljanje nekretninama d.o.o., Zagreb

456,642

460,737

729

2,719

455,913

458,018

81,034

112,772

-834

-51,835

Triglav upravljanje nekretninama d.o.o., Podgorica

790,982

1,923,394

194,395

210,583

596,587

1,712,811

12,252

32,706

-116,225

-110,568

Triglav upravljanje nekretninama d.o.o., Sarajevo

990,357

15,339

5,173

985,184

15,339

8,397

-13,526

Triglav Fondovi d.o.o., Sarajevo

4,182,216

4,989,348

20,708

34,847

4,161,508

4,954,501

144,562

1,046,677

-786,584

560,544

Triglav zdravje asistenca d.o.o., Ljubljana

6,100

599

5,501

2,455

-1,999

Zavod Vse bo v redu

98,730

147,171

3,544

100,000

364,907

113,000

-44,898

47,180

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

208

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Non-controlling interests in the Triglav Group companies

Non-controlling interest in capital

(in %)

Voting rights of non-controlling interests

(in %)

Net proﬁt or loss attributable to

non-controlling interest holders

(in

EUR

)

Retained earnings attributable to

non-controlling interest holders

(in

EUR

)

Company

2022

2021

2022

2021

2022

2021

2022

2021

Triglav Osiguranje d.d., Sarajevo

2.22

1.13

27,850

27,640

283,170

280,040

Triglav Osiguruvanje a.d., Skopje

18.31

18.68

18.31

18.68

11,915

90,054

1,389,778

1,955,469

Lovćen Osiguranje a.d., Podgorica

0.93

21,033

18,676

497,584

498,487

Lovćen životna osiguranja a.d., Podgorica

0.93

3,577

2,385

80,166

83,600

Triglav Savjetovanje d.o.o., Sarajevo

2.22

1.13

2.22

160

-1,447

-19,462

-19,622

Autocentar BH d.o.o., Sarajevo

2.22

1.13

2.22

816

1,400

-143,109

-142,790

Lovćen auto d.o.o., Podgorica

0.93

882

-3,982

-398,599

-399,483

Triglav Osiguruvanje Život a.d., Skopje

2.62

3.74

2.62

3.74

942

-3,218

-78,641

-26,610

Sarajevostan d.o.o., Sarajevo

9.05

8.03

9.05

-15,822

72,370

230,733

246,555

Triglav Fondovi d.o.o., Sarajevo

37.46

-294,654

1,558,902

TOTAL

-243,301

203,878

3,400,522

2,475,645

The two Group companies holding a signiﬁcant non-controlling interest are Triglav Osiguruvanje, a.d., Skopje and Triglav Fondovi, d.o.o., Sarajevo. Their key ﬁnancial information is presented below.

in EUR

Triglav Osiguruvanje a.d., Skopje

Triglav Fondovi d.o.o., Sarajevo

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

CONDENSED BALANCE SHEET

Current assets

7,277,227

7,286,521

3,906,712

4,756,230

Current liabilities

4,433,108

3,001,242

19,212

33,649

Net current assets/liabilities

2,844,119

4,285,279

3,887,500

4,722,582

Non-current assets

34,611,574

42,238,621

275,567

233,194

Non-current liabilities

23,663,568

29,842,684

1,496

1,274

Net non-current assets/liabilities

10,948,006

12,395,937

274,071

231,920

Net assets

13,792,125

16,681,216

4,161,571

4,954,501

in EUR

Triglav Osiguruvanje a.d., Skopje

Triglav Fondovi d.o.o., Sarajevo

2022

2021

2022

2021

CONDENSED COMPREHENSIVE INCOME

Net proﬁt or loss for the year

65,059

482,192

-786,584

560,544

Other comprehensive income

-2,954,150

361,165

Total comprehensive income

-2,889,091

843,357

-786,584

560,544

in EUR

Triglav Osiguruvanje a.d., Skopje

Triglav Fondovi d.o.o., Sarajevo

2022

2021

2022

2021

CONDENSED CASH FLOW STATEMENT

Cash ﬂows from operating activities

1,513,473

336,580

-107,193

233,535

Cash ﬂows from investing activities

-1,600,936

-143,442

231,556

-157,171

Cash ﬂows from ﬁnancing activities

20,280

296

-849

Net change in cash ﬂows

-87,463

213,418

124,659

75,515

Notes to the ﬁnancial statements

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Risk Management

Accounting Report

209

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Changes in the structure of the Triglav Group in 2022

Purchase of shares of Triglav Osiguruvanje, a.d., Skopje from non-controlling interest holders

Triglav INT, d.o.o., Ljubljana acquired a 0.36% participating interest from the non-controlling interest

holders of Triglav Osiguruvanje, a.d., Skopje, thereby becoming its 81.69% owner. The consideration

totalled MAK 2,203,980 or EUR 35,826. The effect of the acquisition of the non-controlling interest was

recognised in the consolidated ﬁnancial statements as an increase in share premium of EUR 20,928.

Transfer of the participating interest in Triglav Savetovanje, d.o.o., Belgrade

Triglav Svetovanje, d.o.o., Domžale sold its 51% participating interest in Triglav Savetovanje a.o.o.,

Belgrade to Triglav Osiguranje, a.d.o., Belgrade. As a result, Triglav Osiguranje, a.d.o., Belgrade became

a 100% owner of Triglav Savetovanje, d.o.o., Belgrade. This transaction had no impact on the Group’s

consolidated ﬁnancial statements.

Establishment of Triglav zdravje asistenca, družba za zdravstveno dejavnost, d.o.o., Ljubljana

Triglav, Zdravstvena zavarovalnica, d.d., Koper, established the subsidiary Triglav zdravje asistenca,

družba za zdravstveno dejavnost, d.o.o., in which it holds a 100% participating interest. The

new company is included in the Triglav Group’s consolidated ﬁnancial statements under the full

consolidation method.

Transfer of the participating interest in Triglav Savjetovanje, d.o.o., Zagreb

Triglav Svetovanje, d.o.o., Domžale sold its 51% participating interest in Triglav Savjetovanje, d.o.o.,

Zagreb to Triglav Osiguranje, d.d., Zagreb. As a result, Triglav Osiguranje, d.d., Zagreb became a 100%

owner of Triglav Savjetovanje, d.o.o., Zagreb. This transaction had no impact on the Group’s consolidated

ﬁnancial statements.

Capital increase of Triglav, pokojninska družba, d.d., Ljubljana

Zavarovalnica Triglav d.d. carried out two capital increases of Triglav, pokojninska družba, d.d., Ljubljana.

The ﬁrst capital increase was performed at the end of May in the amount of EUR 7,999,836 and the

second in June in the amount of EUR 36,999,612. Both capital increases in the total amount of EUR

44,999,448 were carried out with in-cash contributions. With the capital increases, Zavarovalnica Triglav

remained a 100% owner of said company. The capital increases did not affect the consolidated ﬁnancial

statements of the Triglav Group.

The ﬁrst consolidation of Triglav Fondovi, d.o.o., Sarajevo

In the third quarter of 2022, Triglav Fondovi, d.o.o., Sarajevo, was for the ﬁrst time included in the

Triglav Group’s consolidated ﬁnancial statements under the full consolidation method. Up to and

including the ﬁrst half of 2022, the company was included in the consolidated ﬁnancial statements

using the equity method due to immateriality. Due to the nature and scope of business, the company

may become material for the consolidated ﬁnancial statements in the future, therefore, with the aim of

greater transparency, it became subject to full consolidation. As a result of the ﬁrst consolidation of said

company, the Triglav Group’s balance sheet total as at 31 December 2022 increased by EUR 4,182,279

and, consequently, minority interests increased by EUR 1,853,556. There were no effects on the

consolidated income statement from this transaction.

Capital increase of and transfer of the participating interest in Triglav upravljanje nekretninama, d.o.o.,

Sarajevo

In 2022, Triglav Osiguranje, d.d., Sarajevo, Autocentar BH, d.o.o., Sarajevo, and Sarajevostan, d.o.o.,

Sarajevo, increased the capital of Triglav upravljanje nekretninama, d.o.o., Sarajevo with in-kind

contributions in the total amount of EUR 983,386. As at the 2022 year-end, the ownership of this

company was transferred to Triglav Upravljanje nepremičnin, d.o.o., Ljubljana. The capital increase and

the transfer of the participating interest had no material impact on the Triglav Group’s consolidated

ﬁnancial statements.

Capital increase of Triglav Osiguranje, a.d., Banja Luka

Triglav INT, holdinška družba, d.o.o., Ljubljana, increased the capital of Triglav Osiguranje, d.d., Banja

Luka with an in-cash contribution of EUR 999,985. With the capital increase, Triglav INT, d.o.o., remained

a 100% owner of said company. The capital increase had no impact on the Group’s consolidated

ﬁnancial statements.

Capital increase of Triglav Osiguranje, d.d., Zagreb

Triglav INT, holdinška družba, d.o.o., Ljubljana, increased the capital of Triglav Osiguranje, d.d., Zagreb

with an in-cash contribution of EUR 9,987,527. With the capital increase, Triglav INT, d.o.o. remained

a 100% owner of said company. The capital increase had no impact on the Group’s consolidated

ﬁnancial statements.

Capital increase of Triglav Osiguruvanje Život, a.d., Skopje

Triglav INT, holdinška družba, d.o.o., Ljubljana, increased the capital of Triglav Osiguruvanje Život, a.d.,

Skopje with an in-cash contribution of EUR 2,000,000. Because the capital increase was carried out by

one of the two shareholders, their participating interests changed. Through the capital increase,

Triglav INT, d.o.o., became an 85.71% owner (previously 80%) of said company, while the participating

interest of Triglav Osiguruvanje, a.d., in said company decreased to 14.29% (previously 20%). Due to

indirect ownership, the Group’s participating interest in said company increased to 97.38% (previously

96.34%) on account of the capital increase.

Capital increase of Triglav penzisko društvo, a.d., Skopje

Zavarovalnica Triglav, d.d., increased the capital of Triglav penzisko društvo, a.d., Skopje with an in-cash

contribution of EUR 2,356,000. With the capital increase, Zavarovalnica Triglav remained a 100% owner

of said company. The capital increase had no impact on the Group’s consolidated ﬁnancial statements.

Capital increase of Triglav INT, holdinška družba, d.o.o., Ljubljana

Zavarovalnica Triglav, d.d., increased the capital of Triglav INT, holdinška družba, d.o.o., Ljubljana, with

an in-cash contribution of EUR 10,000,000. With the capital increase, Zavarovalnica Triglav remained

a 100% owner of said company. The capital increase had no impact on the Group’s consolidated

ﬁnancial statements.

Notes to the ﬁnancial statements

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2.2 Bases for the preparation of ﬁnancial statements

2.2.1 Statement of compliance

The Group’s consolidated ﬁnancial statements and the Company’s separate ﬁnancial statements for

the ﬁnancial year ended 31 December 2022 were prepared in accordance with International Financial

Reporting Standards (hereinafter: IFRS) as adopted by the EU.

The Group’s and the Company’s ﬁnancial statements were also prepared in accordance with the

requirements of the Companies Act (ZGD-1), the Insurance Act (ZZavar-1) and its implementing regulations.

2.2.2 Bases for measurement and classiﬁcation

The ﬁnancial statements were prepared under the going concern assumption and taking into account

the requirements of adequacy, reliability, comprehensibility and comparability of ﬁnancial information.

Furthermore, they were compiled on the historical cost basis, except in the case of ﬁnancial assets

recognised at fair value through proﬁt or loss and available-for-sale ﬁnancial assets measured at fair

value.

The accounting policies used in the compilation of the ﬁnancial statements are consistent with those of

the ﬁnancial statements for the comparable period.

The ﬁnancial year is the same as the calendar year.

For the preparation of the statement of ﬁnancial position, individual items are classiﬁed into groups

of assets and liabilities depending on their nature, listed in the order of their liquidity and/or maturity.

In additional disclosures current and non-current assets as well as current and non-current liabilities

are posted as separate items, depending on whether they are expected to be paid or settled within 12

months of the balance sheet date (current) or after more than 12 months from the balance sheet date

(non-current).

Financial assets and liabilities on the statement of ﬁnancial position are offset only when there is

a legal right and intent for net settlement, or when the assets are realised and the liabilities are settled

simultaneously. Income and expenses on the income statement are not offset, except if so required by

standards and notes or if this is speciﬁed in the Company’s accounting policies.

The ﬁnancial statements are presented in euros, which is the Group’s presentation currency. The

amounts in the ﬁnancial statements are rounded to one euro.

2.2.3 Verifying the going concern assumption

When preparing the ﬁnancial statements, an assessment was made of the ability of both the Group

and the Company to continue as a going concern due to the deterioration of the general economic and

geopolitical situation and the consequences of the COVID-19 epidemic.

The sensitivity of the Group’s and the Company’s proﬁtability, ﬁnancial position and liquidity under

signiﬁcant assumptions or uncertainties in the environment is described in the section on risk

management.

Based on all the calculations presented, it can be conﬁrmed that the going concern assumption is

appropriate.

The impact of the general economic and geopolitical situation and the consequences of COVID-19

epidemic on individual items in the ﬁnancial statements is presented in Section

2.7.2

2.3 Bases for consolidation

In addition to the separate ﬁnancial statements, the Company compiles the consolidated ﬁnancial

statements of the Group. The Group’s consolidated ﬁnancial statements include all companies directly

or indirectly controlled by the Company.

Zavarovalnica Triglav controls a company if all the following three elements of control are met:



it has inﬂuence over the company (directs important activities that signiﬁcantly affect the

company’s returns) by virtue of voting rights based on equity instruments or by virtue of other rights

arising from contractual agreements,



it is exposed to variable returns or has the right to variable returns from its participation in the

company and



it is able, through its inﬂuence over the company, to inﬂuence the amount of its return.

An assessment of the existence of control of an individual company is performed once a year or if the

facts and circumstances show that one or more of the three elements of control have changed.

Subsidiaries are included in the consolidated ﬁnancial statements under the full consolidation method

from the acquisition date.

The assets and liabilities of a subsidiary are measured at fair value on initial consolidation. Any difference

between the market value of the business combination and the acquirer’s share of the net fair value of

the assets, liabilities and contingent liabilities acquired is accounted for as goodwill. The effects of any

subsequent changes in the acquirer's interest in the subsidiary are recognised in share premium.

If the Company disposes of a subsidiary or loses control over it, such a subsidiary is deconsolidated

from the date on which control ceases. Related assets (including goodwill), liabilities, non-controlling

interests and other components of equity are derecognised, with any effect of loss of control in the

Notes to the ﬁnancial statements

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consolidated income statement being recognised as proﬁt or loss. Any remaining interests in this

company that no longer represent a signiﬁcant or dominant interest after the disposal are recognised at

fair value.

All the Group subsidiaries that are signiﬁcant to the Group’s ﬁnancial statements are fully consolidated.

Exceptionally, companies that are insigniﬁcant from the point of view of consolidated ﬁnancial

statements, i.e. the size of an individual such company does not exceed 0.5% of the Group’s total assets,

may be excluded from full consolidation. A company conducting insurance business or an activity

directly related thereto (e.g. insurance brokerage) cannot be excluded from consolidation.In the full

consolidation process, the carrying amount of the ﬁnancial investment by the controlling company in

each subsidiary and the controlling company’s share in equity of each subsidiary are offset (eliminated).

Intragroup assets and liabilities, income and expenses and the effects of other transactions within the

Group are also eliminated in full.

In the consolidated ﬁnancial statements, proﬁt/loss and other comprehensive income are

proportionately attributed to non-controlling interests. If the equity stake of non-controlling interests

changes, the carrying amounts of the controlling and non-controlling interests are adjusted to reﬂect

the changes in their relative interests in a subsidiary. Any difference between the amount by which

the non-controlling interests are adjusted and the fair value of the consideration paid or received are

recognised directly in equity and attributed to the controlling company’s owners.

The reporting date of the ﬁnancial statements of Zavarovalnica Triglav and its subsidiaries does not

differ from the reporting date of the consolidated ﬁnancial statements.

All Group companies participating in the consolidation process use uniform accounting policies. If the

accounting policies of a particular subsidiary differ from the accounting policies applied by the Group,

appropriate adjustments are made to the ﬁnancial statements of such subsidiary prior to the compilation

of the consolidated ﬁnancial statements to ensure compliance with the Group’s accounting policies.

The ﬁnancial year is the same as the calendar year.

2.4 Foreign currency translation

Items included in the separate ﬁnancial statements of each Group company are measured using the

currency of the primary economic environment in which the respective company operates (functional

currency). The ﬁnancial statements are presented in euros, which is the Group’s presentation currency.

2.4.1 Translation of business events and items

Transactions in foreign currency are translated into the functional currency as at the date of the

transaction at the exchange rate quoted in the European Central Bank’s reference rate list published by

the Bank of Slovenia. If the exchange rate for a certain currency is not published by the Bank of Slovenia,

the exchange rate published by Bloomberg is used. Exchange rate differences arising from the settlement

of these transactions or from the translation of monetary items are recognised in proﬁt or loss.

Foreign rate differences arising from changes in the amortised cost of monetary items denominated

in foreign currency and classiﬁed as available-for-sale ﬁnancial assets are recognised in proﬁt or

loss. Foreign rate differences from non-monetary items, such as equity instruments classiﬁed as

ﬁnancial assets measured at fair value through proﬁt or loss, are recognised in proﬁt or loss. Foreign

rate differences from non-monetary items, such as equity instruments classiﬁed as available-for-

sale ﬁnancial assets, are recognised together with the effects of measurement at fair value in other

comprehensive income and accumulated in equity.

2.4.2 Translation from the functional into the presentation currency

The ﬁnancial statements of Group companies that have a functional currency different from the

presentation currency are translated into the presentation currency as follows:



assets and liabilities are translated at the ﬁnal exchange rate as at the reporting date;



income, expenses and costs are translated at the average exchange rate for the reporting period;



equity components are translated at a historical exchange rate;



all the resulting exchange rate differences are recognised in other comprehensive income.

Goodwill and adjustment of acquired assets of a foreign subsidiary to fair value are treated in the same

way as assets of a foreign subsidiary and are translated into the presentation currency at the closing

exchange rate.

In the consolidated ﬁnancial statements, exchange rate differences resulting from the translation of

a net investment in a foreign subsidiary are recognised in the statement of comprehensive income.

When the Group loses control over a foreign subsidiary, previously recognised exchange rate differences

arising from the translation into the presentation currency are reclassiﬁed from other comprehensive

income into the income statement as part of gains or losses on sale.

Notes to the ﬁnancial statements

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2.5 Signiﬁcant accounting policies

2.5.1 Investments in subsidiaries and associates,

business combinations and goodwill

2.5.1.1 Investments in subsidiaries

An investment in a subsidiary is considered to be an investment in a company that is directly or

indirectly controlled by Zavarovalnica Triglav.

Investments in subsidiaries are measured in the separate ﬁnancial statements at cost less accumulated

impairment losses.

The initial recognition of the investment is made on the date on which the acquirer obtains the right

to control the acquiree. Increases in the share capital of subsidiaries with in-kind contributions are

measured at estimated fair value or carrying amount, where justiﬁed.

Subsidiaries are included in the consolidated ﬁnancial statements under the full consolidation method

as described in Section

2.3

2.5.1.2 Investments in associates and joint ventures

An investment in an associate is an investment in a company in which Zavarovalnica Triglav has a direct

or indirect signiﬁcant inﬂuence (directly or indirectly between 20% and 50% of voting rights), provided

by the possibility of participating in the company’s ﬁnancial and business policy decisions, but not by

controlling these policies.

Joint ventures are companies that are jointly controlled by the Triglav Group and a contract partner

based on a contractual agreement.

Investments in equity instruments of associates and joint ventures are accounted for in the separate

ﬁnancial statements at fair value. For associates whose values are not published on a stock exchange,

a valuation model is used (guideline public company method, comparable transaction analysis,

discounted cash ﬂows, contract value). The effects of valuation at fair value are disclosed in other

comprehensive income.

In the Group’s consolidated ﬁnancial statements, investments in associates and joint ventures are

accounted for using the equity method. An investment in an associate or joint venture is initially

recognised at cost. The carrying amount of the investment is subsequently adjusted to change the

Group's share in the associate’s or joint venture’s net assets as of the acquisition date. Goodwill

relating to an associate or joint venture is included in the carrying amount of the investment. Signs

of impairment are tested at each reporting date. If the recoverable amount is lower than the carrying

amount, the Group carries out impairment up to the level of the recoverable amount.

The corresponding share of an associate’s and joint venture’s proﬁt or loss is recognised in the

consolidated proﬁt or loss. The corresponding effects included in other comprehensive income of an

associate or joint venture are recognised in the consolidated statement of comprehensive income.

Dividends of associates and joint ventures are recognised in the Company’s proﬁt or loss when the right

to receive the dividend is acquired. Dividends of associates and joint ventures are eliminated in the

consolidated ﬁnancial statements.

Upon loss of signiﬁcant inﬂuence over an associate or loss of joint control of a joint venture, each

retained investment is measured at its fair value. The difference between the carrying amount of the

associate or joint venture and the fair value of the retained investment is recognised in proﬁt or loss.

2.5.1.3 Business combinations and goodwill

The acquisition method is used for business combinations. The acquisition date is the date on which

the acquirer obtains the right to control the acquiree. The identiﬁable assets acquired and liabilities

assumed are determined and measured at their acquisition-date fair values. In each business

combination, the non-controlling interest is also measured at the current proportionate share of the

equity interests in the acquiree’s recognised net assets.

Goodwill arises on the acquisition of a subsidiary if the excess of the sum of the consideration given

measured at fair value is greater than the fair value of the company’s acquired assets.If the difference

is negative, the gain is recognised in full in proﬁt or loss. Contingent consideration at fair value is also

included in the consideration.

Accounting policies for the assessment of impairment of goodwill and investments in subsidiaries are

presented in Section

2.5.4.7

, and accounting policies for determining the fair value of associates and

joint ventures in Section

2.5.13

2.5.2 Insurance contracts

2.5.2.1 Classiﬁcation of contracts

The products of the Group’s insurance companies are classiﬁed into homogeneous groups according to

the features of individual products: non-life insurance, traditional life insurance, pension insurance and

unit-linked life insurance. Products can contain either an underwriting risk or both an underwriting and

ﬁnancial risk.

Contracts of an individual homogeneous group are deﬁned as insurance if they contain material

underwriting risk. Such insurance contracts are accounted for in accordance with IFRS 4. If the contracts

contain a material ﬁnancial risk, they are classiﬁed as ﬁnancial and accounted for in accordance with

IAS 39.

The materiality of underwriting risk is determined in relation to additional beneﬁts in the case of

a loss event. The signiﬁcance of additional beneﬁts is assessed by comparing the maximum difference

between the economic value of the payout after a loss event and the payout in other cases. This

difference must be at least 10% of the payout amount at the inception date of the insurance policy.

All non-life insurance, traditional life insurance and unit-linked life insurance contracts contain material

underwriting risk and are therefore deﬁned as insurance contracts.

Notes to the ﬁnancial statements

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The same applies to all pension insurance contracts. In some pension insurance contracts, the base for

determining the amount of pension annuity is already set at the time of concluding the contract, while

most remaining insurance contracts provide additional beneﬁts above the amount of accumulated

assets in the case of death of the policyholder during the accumulation period. In addition, all pension

insurance contracts also contain a discretionary right to proﬁt participation. These contracts enable

the policyholder, under certain terms and conditions determined by the Company, the payment of

additional coverage, which is linked to the return on assets of the guarantee fund, and are therefore

also deﬁned as insurance contracts according to this criterion.

Once an insurance contract is deﬁned as an insurance contract, it remains so until its expiry, even

if during its term the underwiritng risk is signiﬁcantly reduced, unless all rights and obligations are

terminated or expire.

2.5.2.2 Premium income and other insurance income

Net premium income is calculated based on gross written premium and gross outward (co)reinsurance

premium, reduced by (co)reinsurers’ and retrocessionaires’ share and adjusted by the change in gross

unearned premium taking into account the (co)reinsurers’ and retrocessionaires’ share in unearned

premium. Written premium is the basis for recognising gross premium.

Other insurance income includes fee and commission income (asset management fees, (co)reinsurance

and other fees and commissions) and other income from insurance operations (green card sales, claims

settled on behalf of other insurance companies, assistance services and other). Interest income from

operating receivables is also disclosed under this income. This income is recognised in proﬁt or loss

when the service is provided or invoiced.

2.5.2.3 Claims incurred and other insurance expenses

Net claims incurred are gross claims paid (claim payments and claim handling expenses), reduced

by income from collected subrogation receivables and the reinsurance portion and adjusted by the

change in gross claims provisions taking into account the reinsurers’ share in these provisions. Claim

handling expenses comprise external and internal costs of assessing the eligibility and amount of

claims, including legal expenses, expert fees and subrogation recovery expenses. Gross claims paid are

recognised in proﬁt or loss once the claims are settled.

Other insurance expenses include fee and commission expenses, expenses from impairment of

receivables, ﬁre protection tax, prevention expenses and other insurance expenses. Other insurance

expenses are recognised in proﬁt or loss once a service is provided.

2.5.2.4 Insurance-technical provisions

Unearned premium and provisions for unexpired risks

Provisions for unearned premium are the part of gross written premium that relates to the period after

the end of the ﬁnancial year. They are calculated separately for each insurance contract.

The unearned premium for most insurance policies is calculated using the pro rata temporis method,

which assumes that claims are distributed evenly over the term of the contract and that the insurance

cover is constant. Insurance policies with a variable insurance cover are the exception to this rule.

These policies include credit insurance at which the insurance cover decreases and construction and

erection insurance at which the insurance cover increases. For such type of insurance, the calculation of

unearned premium is based on the assumption of a constant claim frequency throughout the term of

the contract and a variable insurance cover.

Provisions for unexpired risk are formed for insurance policies where, based on past experience, it is

assumed that the amount of unearned premium will not sufﬁce for covering all future claims, i.e. for

those insurance classes for which the claims ratio exceeds 100%. Additional provisions for unexpired

risks are calculated in the share of unearned premium, which represents the difference between the

value of the expected claims ratio and 100%.

Additional tests are performed to check the adequacy of the provisions for unearned premium and

unexpired risks. The amounts of future gross claims and gross future expenses are taken into account in

these tests and compared with the amount of established provisions for unearned premium reduced by

deferred acquisition costs.

Claims provisions

Claims provisions are made to cover claims incurred but not settled by the end of the accounting period.

Claims provisions are formed for claims reported, not reported and not enough reported.

Claims provisions are calculated as the sum of incurred and reported claims and incurred but not

reported claims (IBNR). Provisions for incurred and reported claims are based on an inventory of claims.

The majority of provisions for IBNR claims are calculated using the run-off triangular method, taking

into account the combination of the chain ladder method and the Bornhuetter-Ferguson method. The

basis for the calculation is a sample of past claims experience with projected future trends. For this

purpose, a multi-year time series of settled claims is used.

Previous experience shows that claims from major CAT events, such as hail, ﬂoods and storms, are

reported with a delay. None of the standard actuarial methods for determining the amount of IBNR

claims after major CAT events is suitable for their valuation. Such claims can represent a signiﬁcant

portion of total IBNR claims; therefore, in order to ensure an up-to-date calculation of the actual

amount of claims following major CAT events, an additional provision is made for IBNR and incurred but

not enough reported (IBNER) claims separately for each major CAT event.

Notes to the ﬁnancial statements

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If in liability insurance a claim is settled as an annuity, the amount is reserved as a capitalised value

of annuity calculated based on the Slovenian SIA65 mortality tables and a 2.50% interest rate. Other

insurance subsidiaries use local mortality tables. Depending on the possibilities, additional claims

provisions are made for not enough reported annuity claims when the injured party is a minor or

a young person and the insurance company may reasonably expect that the injured party will also ﬁle

a claim for loss of income when reaching a certain age.

With the exception of annuity claims, claims provisions are not discounted.

The adequacy of the claims provisions made is reviewed quarterly. A claims provision is formed based

on statistical data and using actuarial methods. As such, it in itself is a test of the adequacy of

claims provisions.

In the context of testing the adequacy of claims provisions, the liability adequacy test (LAT) is carried

out for liabilities paid out as annuities. Mortality, indexation and discount interest rate assumptions are

used to calculate the adequacy of the claims provisions paid out as annuities.

Mathematical provisions

Mathematical provisions for life, annuity, pension and unit-linked insurance portfolio are calculated

separately for each insurance contract.

The valuation of life and annuity insurance liabilities is carried out by using the modiﬁed prospective

net premium method, taking into account acquisition costs, including all contractual obligations

and bonuses. The insurance technical parameters taken into account by the method either match

the parameters used in the calculation of insurance premium or are adjusted for those subsequently

changed circumstances that increase the amount of liabilities. This is particularly the case for annuity

insurance where the calculation of liabilities takes into account own, more conservative mortality tables

and a carefully set (lower) interest rate.

The mathematical provisions for voluntary pension insurance are built up over the accumulation

(premium payment) period using the retrospective method. In calculating the provisions, this method

takes into account all premiums paid up to the valuation date, entry fees, sums paid out, bonuses

from the guaranteed interest rate and bonuses credited to personal accounts from proﬁt participation.

During the pension annuity payout period, provisions are set aside based on the present value of

estimated future liabilities (the prospective net method). The insurance technical parameters taken

into account in the calculation are either the same as those set at the time of underwriting the policy

or adjusted to the circumstances expected during the pension payout, if these circumstances are worse

than those taken into account in the premium calculation.

The mathematical provisions for supplemental voluntary pension insurance are built up over the

accumulation period using the retrospective method. In calculating the provisions, this method takes

into account all premiums paid up to the valuation date, entry fees, sums paid out, bonuses from the

return on the guarantee fund, the guaranteed return from funds with a guaranteed return and bonuses

credited to personal accounts from proﬁt participation. During the pension annuity payout period,

provisions are set aside based on the present value of estimated future liabilities (the prospective net

method). The insurance technical parameters taken into account in the calculation either match the

parameters set at the time of underwriting the policy or are adjusted for those subsequently changed

circumstances that increase the amount of liabilities, particularly in the valuation of liabilities during

the pension payout period.

The provisions for unit-linked life insurance are calculated for each insurance policy as the fair value

of assets in the investment account less future capitalised management costs (actuarial funding).

For certain insurance products, additional provisions are made to cover contractually deﬁned risks of

payouts under the primary or complementary insurance policies.

All calculations take into account actuarial assumptions, applicable legal provisions and all

contractual liabilities to policyholders arising from insurance policies and the respective insurance

terms and conditions.

The mathematical provisions also take into account bonuses attributed to policyholders in previous

ﬁnancial years in accordance with the rights set out in the underlying insurance contracts and

mathematical provisions in the amount of estimated bonuses for the current ﬁnancial year.

Fair value reserve for available-for-sale ﬁnancial assets is also recognised in the context of mathematical

provisions. The principle of shadow accounting is applied. In relation to available-for-sale ﬁnancial

instruments, fair value reserve is accounted for in other comprehensive income upon recognition; on

the balance sheet date, the transfer to mathematical provisions is made for the portion that will be due

to the policyholders upon realisation in line with the provisions of the insurance contract or internal

regulations.

The LAT is carried out annually both in the Group and the Company. The purpose of the LAT is to verify

the adequacy of life insurance provisions. The test is performed by comparing the amount of provisions

made with the best estimate of provisions determined by taking into account the present value of

the best estimate of future expected contractual and other cash ﬂows. The calculation is performed

at the level of each insurance contract and the results are aggregated into appropriate homogeneous

insurance groups. The test is based on a uniform methodology that determines, among others, the

method of creating homogeneous groups, the selection of risk-free interest rate curves and the scope

of cash ﬂows considered. The test is carried out based on the portfolio balance as at the last day of the

ﬁnancial year.

Insurance contracts are classiﬁed into several homogenous groups subject to approximately the same

risks and managed within the same portfolio. Homogeneous groups are formed according to insurance

classes as follows:



traditional life insurance,



unit-linked life insurance,



supplemental voluntary pension insurance during the accumulation period and



supplemental voluntary pension insurance during the pension payout period.

The cash-generating unit or insurance company is also considered a homogenous group. Any deﬁcit is

determined at the level of an individual insurance company and recognised in the ﬁnancial statements

as an increase in provisions and an expense in proﬁt or loss.

Notes to the ﬁnancial statements

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Mortality, longevity and morbidity assumptions, assumptions about portfolio persistency, assumptions

about costs, increases in insurance premium, expected returns and discount interest rates, proﬁt

participation and annuity factor guarantees are included in the LAT. If the LAT shows that the provisions

are insufﬁcient, additional provisions will be charged to the proﬁt or loss.

Other insurance-technical provisions

Provisions for bonuses in non-life insurance are formed for the part of the premium that will be

reimbursed to those persons insured who meet the criteria set out in insurance terms and conditions

(total claims ratio over the last three years, premium payment discipline and the amount of total

premium). Based on an annual analysis and predeﬁned criteria, the amount of premium reimbursement

is calculated.

Provisions for cancellations represent that portion of unearned premium which is expected to be

reimbursed in the event of early termination and for which deferred acquisition costs were made.

2.5.3 Financial assets

Financial assets comprise ﬁnancial investments, operating and other receivables, and cash and cash

equivalents. The accounting policies for each of these assets are presented below.

2.5.3.1 Financial investments

Financial investments are classiﬁed into the following groups: ﬁnancial assets measured at fair value

through proﬁt or loss, held-to-maturity ﬁnancial assets, loans and deposits, and available-for-sale

ﬁnancial assets. Classiﬁcation depends on the initial purpose for which an investment was acquired. The

management decides on the classiﬁcation of investments at initial recognition.

At initial recognition, ﬁnancial investments are measured at fair value. The initially recognised value is

increased by transaction costs (fees and severance payments to agents, advisers, stock brokers, stock

exchange fees and other transfer-related taxes) that are directly attributable to the acquisition or issue

of a ﬁnancial asset. This does not apply to ﬁnancial investments classiﬁed as assets measured at fair

value through proﬁt or loss, because these costs are recognised in proﬁt or loss directly at acquisition.

The trade date is used at the purchase or sale of a ﬁnancial investment, except for loans and deposits

where the settlement date is used.

Available-for-sale ﬁnancial assets

Available-for-sale ﬁnancial assets are those non-derivative ﬁnancial assets that are classiﬁed as

available for sale or not classiﬁed as loans and deposits, held-to-maturity ﬁnancial investments or

ﬁnancial assets recognised at fair value through proﬁt or loss.

After initial recognition, available-for-sale ﬁnancial assets are measured at fair value, without deducting

transaction costs that may occur when selling or otherwise disposing them. Financial instruments not

listed on a stock exchange are measured at fair value based on recent transaction prices if the market

situation has not changed signiﬁcantly since the last transaction, or using the discounted expected

cash ﬂow valuation model. Equity instruments not quoted in an active market and for which fair

value cannot be reliably measured are measured at cost. The method of determining the fair value of

available-for-sale ﬁnancial assets is described in more detail in Section

2.5.13

Changes in fair value are recognised directly in other comprehensive income as an increase (gain) or

decrease (loss) in fair value reserve, except for impairment of investment and foreign exchange rate

differences on monetary items, such as debt securities recognised in proﬁt or loss.

When available-for-sale ﬁnancial assets are derecognised, the accumulated losses or gains previously

recognised in other comprehensive income are transferred to the income statement.

Held-to-maturity ﬁnancial assets

Held-to-maturity ﬁnancial assets are non-derivative ﬁnancial assets with ﬁxed or determinable

payments and ﬁxed maturities that the Company deﬁnitely intends and is able to hold to maturity.

Held-to-maturity ﬁnancial assets are measured at amortised cost less impairment losses.

Financial assets at fair value through proﬁt or loss

This category includes two groups: ﬁnancial instruments held for trading and ﬁnancial instruments

measured at fair value through proﬁt or loss.

A ﬁnancial asset is classiﬁed as such if the principal intent of its acquisition was to sell it in the

near term, if it is part of the portfolio of ﬁnancial instruments for short-term proﬁt taking or if this

classiﬁcation was decided on by the management. Derivatives are always classiﬁed as ﬁnancial

instruments held for trading.

A ﬁnancial asset designated at fair value through proﬁt or loss is an asset:



held in the Company’s investment portfolios to cover liabilities arising from insurance contracts

related to changes in the fair value of these assets (this classiﬁcation eliminates or reduces any

mismatches arising from the measurement of assets and liabilities or the recognition of gains and

losses on various bases) or



managed and whose performance is measured based on fair value in accordance with the

Company’s investment strategy.

After initial recognition, ﬁnancial assets measured at fair value through proﬁt or loss are measured at

fair value. The method of determining the fair value of ﬁnancial assets designated at fair value through

proﬁt or loss is described in more detail in Section

2.5.13

Gains and losses from changes in fair value are recognised in proﬁt or loss.

The category of ﬁnancial assets measured at fair value through proﬁt or loss also includes ﬁnancial

assets with an embedded unrelated derivative.

Notes to the ﬁnancial statements

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Loans and deposits

Loans and deposits are non-derivative ﬁnancial assets with ﬁxed or determinable payments not listed in

an active market.

At initial recognition, loans and deposits are measured at cost and later at amortised cost using the

effective interest method.

Derivatives

After initial recognition, derivatives are measured at fair value through proﬁt or loss. Market value is

determined based on the quoted price in an active securities market, and if it is not known, the fair

value is estimated according to the valuation model (discounted expected cash ﬂows, Black-Scholes

option pricing model).

Derivatives include ﬁnancial instruments used for hedging cash ﬂows against interest rate risk as well

as for hedging cash ﬂows of individual ﬁnancial instruments and other items.

All proven gains or losses from a change in fair value are recognised in proﬁt or loss.

2.5.3.2 Operating and other receivables

Receivables from insurance operations are recognised when premium is charged to policyholders.

At initial recognition, receivables are disclosed at cost, and subsequently reduced by impairment

adjustment so as to disclose their expected recoverable amount.

Subrogation receivables are recognised when the Company receives the ﬁrst instalment of the payment,

based on a ruling of the court or based on an agreement reached with the subrogation debtor. In credit

insurance, subrogation receivables are recognised immediately at inception.

2.5.3.3 Cash and cash equivalents

Cash includes balances with banks, cash in transit, cash on hand and cash equivalents such as

call deposits.

2.5.3.4 Impairment of ﬁnancial assets

Impairment of ﬁnancial investments

On a quarterly basis or at least at the end of the reporting period, it is assessed whether there is

objective evidence that a ﬁnancial asset or group of ﬁnancial assets is impaired.

For equity instruments, objective evidence of impairment includes an issuer’s statutory changes

(bankruptcy, liquidation, etc.), a signiﬁcant decrease in the fair value of a security or a long-term

decrease in its fair value.

For debt instruments, objective evidence of impairment includes an issuer’s statutory changes

(bankruptcy, liquidation, etc.), late payment or other signiﬁcant negative events related to the issuer’s

credit rating.

When such evidence exists, impairment losses need to be determined.

An impairment loss on an available-for-sale ﬁnancial asset is calculated based on its current fair value.

The accumulated loss initially recognised in other comprehensive income is transferred to the income

statement. The reversal of impairment of equity securities classiﬁed as available-for-sale is recognised

in other comprehensive income.

An impairment loss in respect of a ﬁnancial asset disclosed at amortised cost is calculated as the

difference between its carrying amount and the present value of expected future cash ﬂows,

determined based on the original effective interest rate. The loss is recognised in proﬁt or loss.

The reversal of impairment of ﬁnancial assets disclosed at amortised cost and available-for-sale ﬁnancial

assets that are debt instruments is recognised in proﬁt or loss. An impairment loss may be reversed if such

a reversal can be objectively related to an event occurring after the impairment was recognised.

Impairment of operating and other receivables

The adequacy of the disclosed amount of receivables is checked for each group of receivables. At

least at the end of the ﬁnancial year, receivables are tested for impairment or impairment reversal.

An impairment recorded as adjustment is formed individually for individual signiﬁcant receivables or

collectively for receivables with a similar credit risk. Credit risk is assessed based on the classiﬁcation of

receivables into classes by maturity and experience from previous years with respect to the repayment

of receivables from the same age group. Impairment adjustment increases other expenses from

insurance operations.

Signs of impairment of reinsurance contracts are checked annually. These are impaired only if there is

objective evidence as a result of an event occurred after the initial recognition of the reinsurance asset

that the Company may not be reimbursed for all amounts owed by reinsurers under the contract and

if the event has a reliably measurable impact on the amounts which the Company will get reimbursed

from the reinsurer. In the case of impairment of assets from reinsurance contracts, the effect of

impairment is recognised in proﬁt or loss.

Notes to the ﬁnancial statements

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2.5.4 Non-ﬁnancial assets

Non-ﬁnancial assets include investments in subsidiaries and associates, intangible assets, property,

plant and equipment, investment property, right-of-use assets, non-current assets held for sale and

other assets.

Accounting policies for investments in subsidiaries and associates are described in Section

2.5.1

2.5.4.1 Intangible assets

Intangible assets include goodwill and other intangible assets.

Accounting policies for goodwill are described in Section

2.5.1

At initial recognition, other intangible assets are recognised at cost. At subsequent measurement,

intangible assets are disclosed at cost less accumulated amortisation and accumulated impairment

loss.

The useful life of all other intangible assets of the Company and the Group is assessed as ﬁnite.

Intangible assets with a ﬁnite useful life are amortised over their useful life. Amortisation is calculated

individually using the straight-line amortisation method for each item, with the exception of goodwill,

which is not amortised. Intangible assets are amortised when they are available for use. Amortisation

costs of intangible assets with a ﬁnite useful life are recognised in proﬁt or loss.

The appropriateness of the amortisation period and the amortisation method of intangible assets with

a ﬁnite useful life is assessed at least at the end of each reporting period. Changes in the expected

useful life or expected pattern of consumption of future economic beneﬁts embodied in the asset are

treated as changes in the amortisation period or method, as appropriate, and are treated as changes in

accounting estimates.

At least once a year, at the end of the reporting period, it is assessed whether there are any signs of

impairment of intangible assets with a ﬁnite useful life. In the case of any signs of impairment, assets

are impaired and losses recognised in proﬁt or loss.

An intangible asset is derecognised upon disposal (i.e. the date on which the recipient acquires control

of the asset) or when no future economic beneﬁts are expected from its use or disposal. Any gain

or loss arising on derecognition of an asset (calculated as the difference between the net disposal

proceeds and the carrying amount of the asset) is included in proﬁt or loss.

Intangible assets also include deferred acquisition costs for non-life insurance contracts. An increase

or decrease in these costs is recognised in proﬁt or loss as a change in unearned premium within

net premium income. Deferred acquisition costs for life insurance contracts are considered in the

calculation of mathematical provisions according to the Zillmer method. A change in deferred

acquisition costs for life insurance contracts is recognised as a change in mathematical provisions.

2.5.4.2 Property, plant and equipment

Property, plant and equipment are accounted for using the cost model. At initial recognition, the cost

includes the purchase price and all costs necessary to bring the asset to working condition for its

intended use.

After initial recognition, property, plant and equipment are measured at cost less accumulated

depreciation and accumulated impairment losses.

Property, plant and equipment are depreciated when they are available for use. Depreciation is

calculated using the straight-line depreciation method. Residual value, useful life and depreciation

methods of property, plant and equipment are checked at the end of each ﬁnancial year and adjusted

if necessary. Changes are treated as changes in estimates.

Assets under construction or in production are not depreciated until they are available for use.

Depreciation of a property, plant and equipment asset ceases when it is derecognised.

A property, plant and equipment asset or any signiﬁcant part that was initially recognised is

derecognised upon disposal (i.e. the date on which the recipient acquires control of the asset) or

when no future economic beneﬁts are expected from its use or disposal. Any gain or loss arising on

derecognition of an asset (calculated as the difference between the net disposal proceeds and the

carrying amount of the asset) is included in proﬁt or loss upon derecognition.

Maintenance and repair costs are recognised in proﬁt or loss in the period in which they are incurred.

Further investments that increase future economic beneﬁts increase the value of property, plant

and equipment.

Both the Group and the Company disclose the fair value of property, plant and equipment in the

notes to the ﬁnancial statements. The method of determining the fair value is described in more

detail in Section

2.5.13

2.5.4.3 Investment property

Investment property comprises land and buildings intended for lease. Real property is deﬁned as

investment property if it is not used for own activity or if only an insigniﬁcant part of the building is

used for own activity.

The guidelines on the recognition, valuation and derecognition method of investment property are the

same as those for property, plant and equipment and are described in Section

2.5.4.2

All income from investment property relates exclusively to leases and is disclosed in proﬁt or loss under

other income. Expenses from investment property relate to depreciation and maintenance costs of

investment property and are disclosed under other expenses in proﬁt or loss.

Both the Group and the Company disclose the fair value of investment property in the notes to

the ﬁnancial statements. The method of determining the fair value is described in more detail in

Section

2.5.13

Notes to the ﬁnancial statements

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2.5.4.4 Right-of-use assets

Whether a contract contains a lease is assessed at the inception of the contract. A contract contains

a lease if it conveys the right to control the use of the identiﬁed asset for a period of time in exchange

for consideration.

The Group and the Company use a uniform approach to recognition and measurement for all leases,

except for short-term leases (up to 12 months) and leases of low-value assets (up to EUR 4,300).

An asset acquired under a lease is recognised as right-of-use assets and lease liabilities. Assets and

liabilities are recognised in the amount of the present value of lease payments to be made in accordance

with the concluded lease contract. Future lease payments are discounted at the interest rate implicit in the

lease or at incremental borrowing rate if the interest rate implicit in the lease cannot be determined.

The calculation of right-of-use assets also takes into account any initial direct costs and an estimate of

any removal and restoration costs.

The incremental interest rate is determined based on the interest rate for risk-free government bonds at

the level of the individual country where the Group operates and the credit spread.

Right-of-use assets are measured using the cost model. The initial value of right-of-use assets

is reduced over the life of the asset by depreciation and impairment losses and adjusted for

remeasurement of the lease liability. After initial recognition, lease liabilities are increased by interest

and decreased by lease payments.

The right-of-use assets and lease liabilities are disclosed in the statement of ﬁnancial position as

separate items.

Modiﬁcations related to leases may be a result of:



modiﬁcations of agreed lease terms and conditions and



modiﬁcations of accounting estimates related to leases.

Modiﬁcations of agreed lease terms and conditions relate to changes in the scope of lease,

modiﬁcations of lease consideration or modiﬁcations of the lease term. In these cases, lease

modiﬁcation is calculated in two ways:



the modiﬁcation is treated as a separate lease.



to modify the terms and conditions, the existing lease contract is amended.

Lease modiﬁcation is treated as a separate lease only when it involves adding one or more underlying

assets at a price applicable in the event of an independent lease of that added asset. In this case, lease

is accounted for as a separate lease, independently of the original lease, and the accounting for the

original lease continues unchanged.

In contrast, if a modiﬁcation is not a separate lease, the accounting reﬂects that there is a linkage

between the original lease and the modiﬁed lease. The existing lease liability is remeasured as follows:



The new amount of lease consideration is taken into account.



In the case of adding a new asset, the total consideration is evenly distributed among all underlying

leased assets.



The new term of the lease is taken into account.



When remeasuring lease liabilities, the new discount rate effective at the time of modiﬁcation is

taken into account.

On the other hand, based on the difference between the newly measured liability and the balance of

liabilities before the modiﬁcation, an appropriate adjustment is made to right-of-use assets, resulting in

a change in the amount of depreciation.

In the event of a change in the accounting estimate in respect of leases, the lease liability is remeasured

to take into account the new discount rate effective at the time of the modiﬁcation. The amount from

the remeasurement of the lease liability is recognised as an adjustment to the value of the right-of-use

asset. If the carrying amount of a right-of-use asset is zero and the lease liability is further reduced, the

remaining amount of remeasurement is recognised in proﬁt or loss.

In the case of leases with an indeﬁnite term, the term of the lease is assumed in accordance with the

strategy period. The assessment of the contract term is reviewed every three years.

2.5.4.5 Non-current assets held for sale

Non-current assets held for sale are those non-ﬁnancial assets whose value will be recovered through

sale instead of through continuing use. The condition for the classiﬁcation into the category of

non-current assets held for sale is met when sale is highly probable and the asset is available for

immediate sale in its present condition. The management is committed to a plan to sell the asset,

which must be carried out within one year of the asset being classiﬁed into this category.

At recognition, non-current assets held for sale are measured at the lower of carrying amount before

classiﬁcation and fair value less costs to sell. Costs to sell are expenses that are directly attributable to

the disposal of an asset (disposal group), excluding ﬁnancial expenses and tax expenses.

The same applies to the subsequent measurement of these assets. An impairment loss from the initial

or subsequent write-off of an asset to fair value less costs to sell or gains on subsequent increases in fair

value less costs to sell which may not exceed any accumulated impairment loss.

When property, plant and equipment or intangible assets are classiﬁed as held for sale, they are

no longer amortised. They are presented separately in the statement of ﬁnancial position as

non-current items.

Notes to the ﬁnancial statements

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2.5.4.6 Other assets

Other assets include materials inventories, short-term deferred expenses and accrued income. At

initial recognition, inventories are measured at cost increased by direct costs of procurement. Materials

inventories are recorded according to the FIFO method.

Short-term deferred costs or expenses are amounts that will impact proﬁt or loss in the following

accounting periods. They are accrued in order to ensure an even impact on proﬁt or loss, or are deferred

because they have already been paid but have not yet been incurred.

Other assets also include accrued income for goods and services supplied to clients whose performance

obligations have already been met.

2.5.4.7 Impairment of non-ﬁnancial assets

For all non-ﬁnancial assets, except goodwill, the Group and the Company assess at each reporting date

whether there are any signs of impairment. If there are signs of impairment, an impairment test is

performed. An impairment test for goodwill is performed at the reporting date.

Assessment of impairment signs of non-ﬁnancial assets

Signs of impairment of investments in subsidiaries are assessed on a yearly basis. The assessment takes

into account signs from external sources of information (signiﬁcant changes in the environment with

a negative impact on the company, changes in market interest rates and returns on assets that affect the

recoverable amount of assets, unexpected falls in market values of assets, etc.) and from internal sources

of information (statutory changes, changes in management, change in the volume of business, the

company’s deteriorated economic performance).

Signs of impairment of land and buildings (classiﬁed as property, plant and equipment, investment

property or right-of-use assets) are assessed on a yearly basis. The assessment takes into account signs

from external sources (changes in the real property market) and internal sources (depletion, obsolescence,

inability to lease or generate positive cash ﬂows from operations).

If there are signs of impairment, an impairment test is performed, and the Group and the Company

estimate the asset’s recoverable amount. If the asset’s carrying amount exceeds its recoverable amount,

the asset is impaired.

Impairment test of investments in subsidiaries

The basis for performing an impairment test is IAS 36, which deﬁnes the recoverable amount of an

asset or cash-generating unit as the higher of two items:



fair value less costs of disposal or



value in use.

Impairment tests of investments in subsidiaries are performed by external chartered and internal

business valuator using valuation models, taking into account International Valuation Standards.

The valuation procedure includes at least:



an analysis of the wider environment of society (macroeconomic and institutional);



an analysis of the immediate environment (insurance market and markets of other relevant activities);



an analysis of the company’s business model and operations;



an analysis of the company’s competitive position in the market;



an analysis of the achievement of the plan in terms of the adequacy of planning or the ability to

implement a new plan;



the selection of appropriate methodology and valuation methods according to the standards,

purpose (for accounting purposes) and subject of valuation (business activity);



making and estimating assumptions consistent with the analysis;



estimating the cost of capital based on market parameters;



valuation;



a sensitivity analysis of assumptions to valuation and estimated range.

The key bases and sources for valuation are:



environmental data obtained from local regulatory institutions and statistical ofﬁces, the European

Central Bank and the International Monetary Fund;



an assessment of the income statement and the statement of ﬁnancial position for the year in

question, the business plan of each company approved by the supervisory body of each company for

the year in question and the strategic plan of each company for the coming strategic period;



documentation and information obtained from the management and other key persons of the

company being valued;



expert assessments of the relevant internal departments of Zavarovalnica Triglav and its subsidiaries

or Group companies.

An impairment loss is measured as the difference between the asset’s carrying amount and its

recoverable amount and is recognised in proﬁt or loss.

Impairment of non-ﬁnancial assets is recognised in proﬁt or loss.

Impairment test of land and buildings

In the case of individually material assets, an impairment test is performed individually. The impairment

test of the remaining assets is carried out at the level of cash-generating units.

In determining fair value less costs to sell, International Valuation Standards (IAS), Slovenian Accounting

Standard 2 – Valuation of Real Property Rights and Slovenian Accounting Standard 8 – Valuation for

Financial Reporting are taken into account. Market valuation methods are used in the valuation, such as

the market approach, the income approach and the subdivision development method. The valuation is

performed by an independent certiﬁed real estate valuer.

Notes to the ﬁnancial statements

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The market approach is used as the primary method of valuation, as the valuation by this method is

also the best indicator of the value of real property rights, but only in cases where there are sufﬁcient

transactions with comparable real property available. In the cases where the market analysis is not

a sufﬁciently credible indicator to prepare a valuation, the valuation is made based on other valuation

methods.

Where an income approach is used, potential market rent and stabilised income are assessed. These

data are obtained by analysing current rents and actual collected rent for similar real property in the

vicinity and based on the comparable real property available in the vicinity of the real property under

valuation. The capitalisation rate is determined by the market analysis method based on the calculated

ratio of stable proﬁt and the sales price of real property. Transaction data are obtained through market

analysis and monitoring and the real estate valuer’s own database.

In the case of large undeveloped building land, where a detailed design is deﬁned and where there is no

similar land on the market, the assessment is also made using the subdivision development approach.

The basis for using this method is the assumption that a rational investor will not sell the land at

a lower price than the potential return generated through land development.

For non-ﬁnancial assets, an assessment is made at each reporting date to determine whether there

is any indication that impairment losses previously recognised no longer exist or have decreased. If

any such indication exists, the recoverable amount of the asset is estimated. A previously recognised

impairment loss is reversed only if the assumptions used to determine the asset’s recoverable amount

have changed since the last impairment loss was recognised. A reversal is limited so that the carrying

amount of the asset does not exceed its recoverable amount, nor does it exceed the carrying amount

that would have been determined without depreciation, if no impairment loss had been recognised for

the asset in previous years. Such reversal is recognised in the income statement.

Goodwill impairment test

Due to the need for impairment, goodwill is tested for impairment annually at the reporting date. In

accordance with IAS 36, it is assessed whether there are any signs of impairment of the cash-generating

unit to which goodwill was allocated. The impairment testing and the assessment of required

impairment is performed by assessing the recoverable amount of this cash-generating unit using the

discounted cash ﬂow method. If the recoverable amount exceeds the carrying value, goodwill is not

impaired.

The key assumptions included in the calculation of the recoverable amount are the cash ﬂows realised

and comparison with planned, expected cash ﬂows based on available management plans and the

discount rate calculated as the required rate of return using the CAPM model.

Goodwill impairment is recognised in proﬁt or loss.

2.5.5 Equity and subordinated liabilities

Share capital equals the nominal value of paid-up ordinary shares denominated in euros. If the

Company or a subsidiary acquires treasury shares, i.e. Zavarovalnica Triglav’s shares, their value is

disclosed as a deductible item of the Group's equity. In accordance with the requirements of the

Companies Act (ZGD-1), treasury share reserves are created in the same amount.

Share premium are payments above the nominal amounts of shares or other capital payments in

line with the Articles of Association. The effects of acquisition of non-controlling interests are also

recognised in the consolidated ﬁnancial statements under share premium.

The Company’s reserves from proﬁt are statutory, legal and other reserves from proﬁt and treasury share

reserves. The Company’s legal reserves are created and used in accordance with the ZGD-1. Together with

share premium, they must equal at least 10% of the share capital. This is the Company’s tied-up capital

set aside to protect the creditor’s interests. The Company’s statutory reserves are created in the amount

that equals up to 20% of the share capital. The Company creates statutory reserved based on a decision

by the Management Board to allocate up to 5% of net proﬁt in a ﬁnancial year to statutory reserves,

decreased by any amounts used to cover retained loss, legal reserves and reserves from proﬁt. Statutory

reserves may be used to cover net loss for the year and loss brought forward, for treasury share reserves,

increase share capital from the Company’s assets and regulate the dividend policy.

In accordance with the ZGD-1, the Company’s Management Board may allocate up to one half of the

amount of the net proﬁt remaining after the appropriation of the proﬁt for the purposes required by

law to create other reserves.

Reserves of subsidiaries are formed and used in accordance with the legislation of the countries in

which these companies operate.

Subordinated liabilities include subordinated debt instruments for which it was agreed in the underlying

agreements to be paid last in the event of the bankruptcy or liquidation of the company that issued these

securities. Subordinated liabilities are measured at amortised cost in the ﬁnancial statements.

2.5.6 Employee beneﬁts

Employee beneﬁts comprise provisions for jubilee and retirement beneﬁts and unused leave. Provisions

for jubilee and retirement beneﬁts are calculated using the actuarial valuation method, i.e. the

projected unit credit method or the accrued beneﬁts based on service method. In line with IAS 19, the

calculation is based on the following actuarial assumptions:



demographic assumptions (mortality and early termination of employment);



ﬁnancial assumptions:



the discount rate taking into account the yield on government securities at the balance sheet date and



wage growth taking into account inﬂation, age, promotion and other factors such as supply and

demand in the employment market.

Notes to the ﬁnancial statements

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Provisions for unused leave are calculated as the value of gross wage plus taxes for the period of unused

leave. Provisions are undiscounted.

Changes in provisions for employee beneﬁts due to payments and new provisions made are recognised

in proﬁt or loss under operating expenses (labour costs). Revaluation of provisions from an increase or

decrease in the present value of liabilities due to changes in actuarial items and experience adjustments

is recognised as actuarial gains or losses as follows: for provisions for retirement beneﬁts in other

comprehensive income and for provisions for jubilee beneﬁts in proﬁt or loss.

2.5.7 Operating and ﬁnancial liabilities

Operating liabilities are recognised in the statement of ﬁnancial position when the payment of

a liability results from a contractual obligation. Operating liabilities are disclosed at amortised cost.

At initial recognition, ﬁnancial liabilities are measured at cost based on the relevant documents on their

origin. They are decreased by paid amounts and increased by accrued interest. Financial liabilities are

disclosed at amortised cost in the ﬁnancial statements. Interest paid on loans taken is recognised as

expense and accordingly accrued over the term of the underlying loan.

2.5.8 Income and expenses from ﬁnancial investments

Income from ﬁnancial investments comprises interest income, dividends, changes in fair value, gains on

disposal and other income from ﬁnancial investments. Expenses from ﬁnancial investments comprise

expenses from impairment of ﬁnancial investments, losses on disposal and other expenses from

ﬁnancial assets.

Interest income is recognised in proﬁt or loss using the effective interest method, except for ﬁnancial

assets classiﬁed at fair value through proﬁt or loss.

Income from dividends is recognised in proﬁt or loss when it is authorised for payment.

Income and expenses due to changes in fair value of ﬁnancial assets relate to the results of subsequent

measurement of the fair value of ﬁnancial assets measured at fair value through proﬁt or loss.

Gains and losses on disposal of ﬁnancial assets relate to the derecognition of ﬁnancial assets other

than ﬁnancial assets measured at fair value through proﬁt or loss. Gain is the difference between the

carrying amount of a ﬁnancial asset and its sales price.

Income and expenses from ﬁnancial investments include net unrealised gains and losses on unit-linked

life insurance assets. These income and expenses represent changes in the fair value of unit-linked life

insurance assets.

2.5.9 Other income and expenses

Other income includes income from investment property, income from intangible assets and property,

plant and equipment, other income not directly related to insurance operations and sales income from

non-insurance companies. They relate to income from contracts with clients that is recognised upon the

transfer of control of goods or services to the client in an amount that reﬂects consideration to which

the entity expects to be entitled in exchange for those goods or services.

Income from contracts with clients is recognised at the fair value of the consideration received or

receivable, net of returns and discounts, rebates and volume discounts. Income is disclosed when the

buyer has taken control of the goods or beneﬁts from the services provided.

When selling goods or services, income is recognised when the goods are delivered to the client or the

service is provided and the recoverability of related receivables is reasonably guaranteed.

Other expenses include other expenses not directly related to insurance operations and operating

expenses of non-insurance companies. Other expenses also include ﬁnancial expenses, which include

interest expenses from subordinated bonds, interest expenses from asset leases and other interest

expenses from operating activities. Other expenses are recognised in proﬁt or loss when the service

is provided.

2.5.10 Government grants and government assistance

Funds received directly or indirectly by a company from the state, government agency or similar bodies

at local, national or international levels are considered government grants or assistance. The received

government grants are not the result of the performance of ordinary commercial transactions which

a company receives in exchange for the provided service or supply of goods. A government grant means

the transfer of funds to a company in exchange for taking into account speciﬁc circumstances in the

past or future.

The calculation of a government grant is made using the income approach, which provides for the

recognition of a government grant in proﬁt or loss. A government grant is recognised in proﬁt or loss as

income over the period necessary to match them with the related costs, for which they are intended to

compensate. The grants received for costs already incurred are recognised immediately.

Government grants related to assets which are conditional on the purchase, construction or otherwise

acquired asset are recognised as deferred income, which the company recognises in proﬁt or loss on

a systematic basis over the useful life of the asset.

Grants related to income, i.e. grants not related to assets, are recognised as a deduction of related expenses.

Notes to the ﬁnancial statements

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2.5.11 Operating expenses

Gross operating expenses are recognised as original expenses by nature. Expenses are classiﬁed by

function in proﬁt or loss. Claim handling expenses are an integral part of claims incurred and asset

management costs are an integral part of expenses for investments, whereas acquisition costs and

other operating expenses are disclosed separately. Total operating expenses are disclosed by nature and

function in disclosures.

2.5.12 Taxes and deferred taxes

Tax expense comprises current tax expense and deferred tax income or expense.

Short-term income tax assets and liabilities are measured at the amount expected to be paid to the

tax authorities. The tax rates and tax laws used to calculate the amount are those effective as at the

reporting date in the countries where the Group and the Company operate and earn taxable proﬁt.

Deferred tax assets and liabilities are calculated for temporary differences between the value of assets

and liabilities for tax purposes and their carrying amount.

Deferred tax assets are recognised for all deductible temporary differences, transfer of unused tax

credits and any unused tax losses. Deferred tax assets are recognised if it is probable that taxable proﬁt

against which deductible temporary differences can be utilised and the transfer of unused tax credits

and losses will be available, except:



if the deferred tax asset relating to the deductible temporary difference arises from the initial

recognition of an asset or liability in a transaction other than a business combination and which, at

the time of the transaction, does not affect either the accounting or the taxable proﬁt;



with respect to deductible temporary differences associated with investments in subsidiaries,

associates and interests in joint arrangements, deferred tax assets are only recognised to the extent

that it is probable that the reversal will not occur in the foreseeable future and that taxable proﬁt

will be available against which the temporary difference will be utilised.

The carrying amounts of deferred tax assets are reviewed at each reporting date and reduced to the

extent that it is no longer probable that sufﬁcient taxable proﬁt will be available against which deferred

tax assets will be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date

and are recognised to the extent that it becomes probable that future taxable proﬁts will be available

against which the deferred tax assets can be utilised.

In assessing the collectability of deferred tax assets, the Group and the Company rely on the same

assumptions that they use in other parts of the ﬁnancial statements.

Deferred tax liabilities are recognised for all taxable temporary differences, except:



if the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in

a transaction other than a business combination and which, at the time of the transaction, does not

affect either the accounting or the taxable proﬁt;



with respect to taxable temporary differences associated with investments in subsidiaries,

associates and interests in joint arrangements, when it is possible to control the timing of the

reversal of temporary differences and that it is probable that the reversal will not occur in the

foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year

when the asset is realised or the liability is settled, based on tax rates/laws that have been enacted or

substantively enacted as at the reporting date.

The effects of the recognition of deferred tax assets and liabilities are recognised as income or expense

in proﬁt or loss, except when the tax arises from an event recognised in other comprehensive income.

Deferred tax assets and liabilities relating to the same tax jurisdiction, period and taxable unit are

offset at the level of an individual company.

In the case of consolidation, temporary differences arising from differences between the ofﬁcial

ﬁnancial statements of a subsidiary and the adjusted ﬁnancial statements for consolidation purposes

and those differences arising from consolidation procedures may be recognised.

2.5.13 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date. The measurement of the fair value

of assets or liabilities takes into account their characteristics and assumes that the asset or liability is

exchanged in an orderly transaction under current market conditions in the principal market or in the

most advantageous market for those assets or liabilities.

Financial assets measured at fair value through proﬁt or loss and available-for-sale ﬁnancial assets

are measured at fair value. Financial assets classiﬁed as loans and receivables and held-to-maturity

ﬁnancial assets are measured at amortised cost and their fair value is disclosed.

The fair value of ﬁnancial instruments traded on regulated ﬁnancial markets is determined based on

quoted prices at the reporting date.

If there is no active market for a ﬁnancial instrument, its fair value is measured by various valuation

techniques. An active market is a market in which transactions between market participants take place

frequently enough and to a sufﬁcient extent to provide price information on a regular basis. Market

activity, i.e. whether the market is active or not, is determined for each ﬁnancial instrument according

to the available information and circumstances. Factors that are important in assessing market activity

include: the low number of transactions in a given time period, high volatility of quoted prices in a given

time period or between different market makers, high price difference between supply and demand, the

Notes to the ﬁnancial statements

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low number of market participants (fewer than 4). An important criterion, which includes all the above

factors, for the activity of securities is the Bloomberg Valuation Service (BVAL) Score. Low scores of the

indicator (below 3) indicate that the market is not active.

In determining the fair value of ﬁnancial instruments, valuation methods are used at the comparable

fair value of another instrument that has similar signiﬁcant characteristics, as well as discounted cash

ﬂow analysis and option pricing models. If there is a valuation technique commonly used by market

participants to determine the price of the instrument and if its reliability in estimating the prices

obtained from actual market transactions has been demonstrated, such a technique will be used.

The assumptions and estimates used contain certain risks regarding their actual fulﬁlment in the

future. In order to reduce these risks, the assumptions and estimates used are tested in various ways

(e.g. comparison of assumptions or estimates with the sector/industry, individual market companies

and similar). In addition, when calculating the range of estimated value of an individual investment,

a sensitivity analysis is performed for key value drivers such as: net sales income, the EBITDA margin,

the ﬁnancial intermediation margin, the rate of return on ﬁnancial investment portfolio, operating

expenses to total assets, cash ﬂow growth and the discount rate. The discounted cash ﬂow method uses

estimated future cash ﬂows and discount rates that reﬂect interest rates for comparable instruments.

If the fair value of ﬁnancial instruments cannot be measured reliably, they are measured at cost

(amount paid or received), plus any costs incurred in the transaction.

Investments in associates and joint ventures are also measured at fair value in the Company’s

separate ﬁnancial statements. For associates and joint ventures whose values are not listed on the

stock exchange or for which there is no active market, a valuation model is used (the guideline public

company method, the comparable transaction analysis, discounted cash ﬂows, the contractual value).

For the purpose of disclosing fair value, the fair value of non-ﬁnancial assets is also assessed, taking into

account the market participant’s ability to generate economic beneﬁts by using the asset in its highest

and best use or by selling it to another market participant that would use the asset in its highest and

best use.

In assessing the fair value of own-use land and buildings and investment property, the income

capitalisation approach, the market approach and the analysis of the most economical use for

development land are used. The most important parameters included in the calculation are market

prices of comparable real property and the capitalisation rate. Fair value is estimated by internal and

external chartered business valuators, taking into account International Valuation Standards.

When estimating the fair value of a subordinated bond issued, the price according to the model (the

discounted cash ﬂow method) is taken into account, as the management assessed that the market was

not active.

The fair value hierarchy is used to disclose the method of determining the fair value of assets and

liabilities. This is determined by the inputs to the valuation technique used to measure fair value.



Level 1 inputs: unadjusted quoted prices in active markets under IFRS 13 for identical assets or

liabilities that the entity can access at the measurement date. The quoted prices may be adjusted

only exceptionally.



Level 2 inputs: are quoted prices for similar assets or liabilities in active markets, quoted prices in

markets that are not active and quoted prices that are observable.



Level 3 inputs: are prices that do not meet the standards for Level 1 or Level 2. The share of

unobservable inputs used in value measurement models is considerable. Unobservable inputs

have to use the assumptions that market participants would use when pricing the asset or liability,

including risk assumptions.

Notes to the ﬁnancial statements

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The valuation techniques and market inputs used to develop these techniques are presented below.

Financial investment type

Value assessment method

Material parameters

Parameter weight applied

Fair value

EXTERNAL APPRAISERS (market operator)

Debt securities - composite

Stochastic

model, HW1f and HW2f network models

EUR SWAP interest rate curve, issuer credit spreads,

comparable issuer credit spreads, interest rate volatility,

correlation matrix, volatility indices

Level 2

Debt securities– compound with exposure to stock

markets

Stochastic model

EUR SWAP interest rate curve, issuer credit spreads,

comparable issuer credit spreads, interest rate volatility,

volatility indices

Level 2

Derivatives

Black-Scholes model

Index volatility

Level 2

BLOOMBERG BVAL

Debt securities – companies, ﬁnancial institutions and

government

Cash ﬂow discounting according to amortisation schedule

EUR SWAP interest rate curve, issuer credit spreads,

comparable issuer credit spreads, indicative listings

Level 2

INTERNAL APPRAISERS

Debt securities - government

Cash ﬂow discounting according to amortisation schedule

Republic of Slovenia interest rate yield curve

yield curve issued by Republic of Slovenia (Bloomberg ID:

I259 Currency); credit spread between 0 and 0.92%

Level 2

Debt securities - companies and ﬁnancial institutions

Cash ﬂow discounting according to amortisation schedule

Republic of Slovenia interest rate yield curve, issuer credit

spreads

yield curve issued by Republic of Slovenia (Bloomberg ID:

I259 Currency); credit spread between 1.87 and 6%

Level 2

Equity securities

Cash ﬂow discounting

g (growth rate during constant growth period)

Level 3

EBIT margin (constant growth period)

16.40–30.30%

Discount rate

11.71–14.7%

Lack of marketability discount

6.50–18.00%

NAV method

Real property price changes

Market approach

MVIC/EBITDA

Equity investment in associates

Equity method

Accumulated gains and losses

Level 3

Real property for own use

Income approach, market approach, land residual method

(analysis of the most economical use of development land)

Capitalisation rate, market prices of comparable real

property

7.5–15% depending on risk/location

Market values based on information available

Level 3

Investment property

The fair value of assets and liabilities is shown in section

5.3

Notes to the ﬁnancial statements

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2.6 Signiﬁcant accounting judgments, estimates and assumptions

The preparation of the ﬁnancial statements in line with IFRS requires the use of judgments, estimates and

assumptions that affect the value of reported assets and liabilities at the reporting date and the amount

of income and expenses in the reporting period. Although the estimates used are based on the best

knowledge of current events and activities, the actual results may differ from the estimates. Estimates and

assumptions are reviewed regularly and their adjustments are recognised in the period of the change.

The following is a summary of the accounting judgments, estimates and assumptions used in the

preparation of the ﬁnancial statements of the Group and the Company. Accounting policies for items

subject to judgments and estimates are described in Section

2.5

. The estimates used in the preparation

of the ﬁnancial statements for the ﬁnancial year ended 31 December 2022 are presented in Section

Item in the ﬁnancial statements / content

Accounting judgement / estimate

Assumptions and sources of uncertainty

Accounting

policy

Assumptions

and estimates

used

Going concern

The judgement of the Group and the Company as a going concern is

prepared based on an assessment of the risks and uncertainties to

which the Group and the Company are exposed.

Assumptions about future risk exposure and uncertainty in the business

environment. A sensitivity analysis of the Group’s and the Company’s

proﬁtability, ﬁnancial position and liquidity to risks and uncertainties.

N/A

The section on

risks,

2.7

Investments in subsidiaries

Investments in subsidiaries are investments in companies that are

directly or indirectly controlled by Zavarovalnica Triglav. A signiﬁcant

judgement is the judgement of whether the conditions of control in an

individual company are met.

The existence of inﬂuence on the company based on voting rights or

contractual agreements. Exposure to variable return. Impact on return

via impact on the company.

2.3

2.5.1.1

3.5

Investments in subsidiaries

Investments in subsidiaries are measured at cost in the Company’s

separate ﬁnancial statements. A signiﬁcant judgement is the

judgement of whether there are any signs of impairment of these

investments. If any sign of impairment exists, the signiﬁcant accounting

estimate relates to the calculation of the required impairment at the

balance sheet date.

Assumptions about the wider and immediate environment of the

company and the company’s position in the market, assumptions about

the adequacy of the business model, predictions about the company’s

future operations and its ability to implement plans, assumptions about

the cost of capital and the long-term growth rate.

2.5.1.1

2.5.4.7

3.5

Investments in associates and joint ventures

Investments in associates and joint ventures are measured at fair value

in separate ﬁnancial statements. A signiﬁcant estimate is the estimate

of the fair value of these investments when their values are not quoted

on the stock exchange.

The estimate of comparable public companies, the estimate of

comparable stock market transactions, the estimate of expected cash

ﬂows, discount rates and long-term growth rates.

2.5.1.2

2.5.13

5.1

3.6

Goodwill

At initial recognition, goodwill is measured at cost and subsequently

assessed for impairment annually. The amount of the required

impairment is a signiﬁcant estimate in the Group’s ﬁnancial statements.

Assumptions about the company’s future operations and its ability

to achieve the set goals, the estimate of the convergence of markets

towards more developed ones, expected economic trends, discount rate,

the estimate of the necessary premium for speciﬁc risks.

2.5.4.7

3.1

Classiﬁcation of contracts

Contracts concluded by the Group and Company are classiﬁed as

insurance or ﬁnancial contracts according to their characteristics. The

estimate of whether a contract is an insurance or ﬁnancial contract

has a signiﬁcant effect on the further measurement and disclosure of

related items in the ﬁnancial statements.

The assumption of material underwriting risk in relation to additional

payouts in the event of a loss event.

2.5.2.1

N/A

Unearned premium and provisions for unexpired risks

When preparing the ﬁnancial statements, it is assessed whether the

Group or the Company created unearned premium in an adequate

amount. In the event that unearned premium is not formed in an

adequate amount, an estimate is made of the required amount of

provisions for unexpired risks.

Assumptions about the claims ratio, assumptions about future gross

claims and gross future expenses.

2.5.2.4

3.16

Claims provisions

Claims provisions are made to cover claims incurred but not settled

by the end of the accounting period. Claims provisions are calculated

using the actuarial methods that take into account the pattern of claim

settlement in the past and predictions about future trends. Claim

provisions are a signiﬁcant estimate in the ﬁnancial statements.

Predictions of future claim trends.

Assumptions about mortality, longevity and morbidity, indexation and

discount rate for annuity claims.

2.5.2.4

3.16

Mathematical provisions

Mathematical provisions are created to cover life insurance liabilities.

They are calculated using actuarial methods and are a signiﬁcant

estimate in the ﬁnancial statements.

Assumptions about mortality, longevity and morbidity, interest rate,

guaranteed technical interest rate.

2.5.2.4

3.16

Notes to the ﬁnancial statements

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Item in the ﬁnancial statements / content

Accounting judgement / estimate

Assumptions and sources of uncertainty

Accounting

policy

Assumptions

and estimates

used

Mathematical provisions

The adequacy of created life insurance provisions is checked annually

using the liability adequacy test (LAT), which is based on the best

estimate of provisions, taking into account the present value of the

best estimated future expected contractual and other cash ﬂows and is

performed at the level of individual insurance contracts.

Assumptions about mortality, longevity and morbidity, assumptions

about portfolio persistency, expenses, increase in insurance premium,

expected returns and discount rates, proﬁt participation and annuity

factor guarantees.

2.5.2.4

3.17

Financial investments

Financial investments are measured at fair value in the ﬁnancial

statements or their fair value is disclosed. The fair value of ﬁnancial

investments is a signiﬁcant accounting estimate when the fair values of

investments are not quoted on the active market (stock market).

The estimate of comparable stock market transactions, interest rate

curves, credit spreads, interest rate volatility, stock index volatility, the

estimate of expected cash ﬂows, discount rates and growth rates.

2.5.3.1

2.5.13

3.7

5.1

Available-for-sale ﬁnancial investments, ﬁnancial investments valued at

amortised cost, investments in associates

A signiﬁcant judgement is the judgement of whether there are any

signs of impairment of these investments. If any sign of impairment

exists, the signiﬁcant accounting estimate relates to the calculation of

the required impairment at the balance sheet date.

Assumptions of expected cash ﬂows, the estimate of what is

a signiﬁcant and what is a long-term decline in the value of ﬁnancial

instruments.

2.5.3.1

2.5.3.4

3.7

Receivables

Receivables are disclosed in the ﬁnancial statements at amortised cost,

and when preparing the ﬁnancial statements it is assessed whether the

receivables are impaired. A signiﬁcant judgement is the judgement of

credit risk associated with speciﬁc receivables or a group of receivables,

and a signiﬁcant estimate is the estimate of the necessary impairment.

Assumptions about the recoverability of receivables based on

experience from past years.

2.5.3.2

2.5.3.4

3.10

Intangible assets, property, plant and equipment, investment property

Intangible assets, property, plant and equipment and investment

property are disclosed in the ﬁnancial statements using the cost model.

A signiﬁcant estimate that affects the amount of amortisation expense

is the estimated useful life of assets.

Expected physical wear and tear, technical and economic ageing of the

asset. Expected legal or other restrictions of use.

2.5.4.1

2.5.4.2

2.5.4.3

3.1

3.2

3.3

Property, plant and equipment, investment property

Property, plant and equipment and investment property are disclosed

in the ﬁnancial statements using the cost model. The fair value

of these assets, which is determined for disclosure purposes, is

a signiﬁcant estimate.

Market prices of comparable real property, the expected rates of return

on real property (potential market rent and stabilised income), the

capitalisation rate.

2.5.4.2

2.5.4.3

2.5.13

3.2

3.3

Property, plant and equipment, investment property

Property, plant and equipment and investment property are disclosed

in the ﬁnancial statements using the cost model. When compiling

the ﬁnancial statements, it is assessed whether there are any signs of

impairment of these assets. In any sign of impairment exist, an estimate

of the necessary impairment is a signiﬁcant accounting estimate.

Market prices of comparable real property, the expected rates of return

on real property (potential market rent and stabilised income), the

capitalisation rate.

2.5.4.2

2.5.4.3

2.5.4.7

3.2

3.3

Assets and liabilities from received leases

The amount of leased assets and related ﬁnancial liabilities is measured

upon recognition at the present value of future lease payments.

A signiﬁcant estimate in determining the amount of assets and

liabilities is the assumed discount rate, and in the case of assets leased

for an indeﬁnite term also the estimate of lease term.

Assumption of interest rate and the necessary mark-ups.

The expected lease term.

2.5.4.4

3.4

Deferred tax assets

Deferred tax assets are recognised in the ﬁnancial statements if it

is probable that taxable proﬁt against which deductible temporary

differences can be utilised and the transfer of unused tax credits and

losses will be available. The judgement of the justiﬁcation of created

deferred tax assets is a signiﬁcant accounting judgement.

Assumptions about the future proﬁtability of the Group’s companies

and Zavarovalnica Triglav.

2.5.12

3.21

Employee beneﬁts

The calculation of provisions for termination and jubilee beneﬁts is

based on an actuarial valuation method and therefore is a signiﬁcant

estimate in the ﬁnancial statements.

Demographic assumptions (mortality, early termination of employment)

and ﬁnancial assumptions (discount rate, wage growth, inﬂation).

2.5.6

3.19

Notes to the ﬁnancial statements

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2.7 Risk management

Awareness of the risks to which individual companies are exposed is key to their security and

ﬁnancial stability. The Triglav Group has four major sets of ﬁnancial risks occurring in its operations:

underwriting, market, credit and liquidity risks.

They are summarised below, including the nature of exposure, measurement methods and references

to the relevant section in the annual report where additional information can be found.

2.7.1 Overview of material risks to which the Company and the Group are exposed

Risk type and reference

Underwriting risk

Risk management, Section

3.2

Accounting Report, Section

3.17

Nature of exposure

Premium risk

Provision risk

Lapse risk

Catastrophe risk

Concentration risk

Low frequency and high severity risks

Life expense risk

Mortality risk

Longevity risk

Premium and provision risks

Method of measurement

Sensitivity analysis

LAT

Overview of concentrations

Risk management

Analysis of premium and provision risk volatility, regular monitoring of low frequency and high

severity risks, liability adequacy test (LAT).

Market risk

Risk management, Section

3.3

Interest rate risk

Equity risk

Property risk

Spread risk

Currency risk

Market concentration risk

Sensitivity analysis

Asset-liability matching analysis

Overview of concentrations

Appropriate diversiﬁcation of the investment portfolio, regular matching of assets and liabilities,

regular assessment of market risks according to established methods, the limit system.

Credit risk

Risk management, Section

3.4

Investment risk

Risk from reinsurance contracts

Risk from insurance contracts

Maturity analysis

Overview of concentrations

The analysis of the credit quality of partners, adequate portfolio diversiﬁcation, regular monitoring of

exposure by credit rating and management of exposures to partners with no credit rating, monitoring

of receivables below and over 0 days past due, separate monitoring of subrogation receivables

including recovery efﬁciency, the limit system.

Liquidity risk

Risk management, Section

3.5

The risk of inappropriate assets in terms of their nature,

duration and liquidity compared to liabilities

Maturity of assets and liabilities

Planning of actual and potential net cash outﬂows, appropriate amount and composition of liquid

investments, regular monitoring of the liquidity position at different time intervals, assuming normal

and exceptional circumstances, the limit system.

2.7.2 The impact of geopolitical risks and the changed economic

situation on individual items in the ﬁnancial statements

The COVID-19 pandemic gradually ended in 2022. European countries’ pandemic-related measures

resulted in loosening supply chains, stimulated increased household consumption and higher sovereig

debt. The year 2022 was marked by the beginning of the war in Ukraine. The consequences of the

Russian aggression on Ukraine were the extensive sanctions of the world economies with the aim of

weakening the Russian economy, which additionally affected supply chain disruptions and increased

the prices of energy products. All these events in 2022 resulted in rising inﬂation, which the central

banks tried to moderate by increasing interest rates, thereby greatly increasing the borrowing costs

of the already highly indebted countries. Geopolitical risks and the deteriorating macroeconomic

situation also affected the ﬁnancial markets, where signiﬁcant increases in interest rates, uncertainty

surrounding the operations in the Russian market and uncertainty regarding future economic

development caused major falls in market prices.

Impact on business

Geopolitical risks and the changed macroeconomic situation mainly inﬂuenced the increase in

operating expenses and claims paid in the non-life insurance segment. High inﬂation did not have

a signiﬁcant impact on life insurance claims experience, as the vast majority of insurance policies have

a sum insured determined in an absolute amount that is independent of inﬂation.

In response to inﬂationary trends, primarily gross written premium rose and, as expected, premium

income to a somewhat lesser extent. Premium increase in 2022 will have the largest impact on

premium income in 2023.

The changed economic environment did not have a signiﬁcant impact on policyholders’ decision to

terminate their policies early. On the basis of empirical data, up to and including December 2022, no

signiﬁcant deviations from the past few years were identiﬁed. Furthermore, changes in the economic

environment in 2022 have not yet had a negative impact on the balance or structure of receivables by

maturity, as shown in Section

3.10

Notes to the ﬁnancial statements

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Impact on assumptions used in creating provisions

The changed economic situation mainly affected the assumptions used to calculate non-life insurance

claims provisions, provisions resulting from the LAT for life insurance and employee beneﬁts.

In calculating non-life insurance claims provisions as at 31 December 2022, the inﬂation forecast for

2023 by the International Monetary Fund (IMF) and local institutions in each country was taken into

account. For Slovenia, a 3.9% inﬂation rate was taken into account, which is in line with the forecast of

the Institute of Macroeconomic Analysis and Development of the Republic of Slovenia. The consumer

price index was used as an inﬂation indicator for all non-life insurance segments. The claim frequency,

which fell during the COVID-19 epidemic, returned to a level comparable to pre-COVID-19 levels, which

was taken into account in creating provisions.

Due to the nature of the calculation of insurance-technical provisions for life insurance, inﬂation had

no effect on their level, but due to the rise in interest rates provisions from the LAT in the amount of

EUR 12,257,283 were released.

In the calculation of employee beneﬁts, the assumption of future salary increases was increased, while

the risk-free interest rate term structure increased due to rising interest rates in the ﬁnancial markets.

The combined effect of both changes is a reduction in provisions by EUR 2,098,298.

Impact on the ﬁnancial assets portfolio

In 2022, due to the reasons described above, there was a historic increase in risk-free interest rates

and credit spreads (which affected the fall in the value of the Group’s debt ﬁnancial investments)

and a decline in the value of the Group’s equity investments. The increase in interest rates mainly

depended on the higher inﬂation rate. Since higher inﬂation is accompanied by higher nominal interest

rates, the inﬂationary environment negatively affects the value of ﬁxed-income assets. Fixed-rate

debt ﬁnancial instruments account for the majority of the Group’s ﬁnancial investments. Part of the

interest sensitivity of assets can be neutralised with the interest sensitivity of insurance liabilities by

implementing an appropriate asset-liability management policy, which in the event of an increase in

interest rates means that both assets and liabilities are revalued, while the effect on the amount of

excess of assets over liabilities, i.e. capital, is accordingly lower.

In 2023, the Company expects a gradual easing of inﬂation, but it will remain elevated. As a result, the

Company anticipates a calm and moderate increase in interest rates for the next year as well, and thus

a smaller impact on the revaluation of the Group’s ﬁnancial assets.

Impact on the valuation of investments in subsidiaries

For the purposes of ﬁnancial statements, interests in subsidiaries are subject to a model-based

valuation. In the model-based valuation, nominal projections of cash ﬂows from operating activities

are used. The nominal interest rate and other market parameters (e.g. premium for capital risk) are

also taken into account in the discount rate. The actual impact of inﬂation on an individual subsidiary

strongly depends on the ability of how quickly and efﬁciently the company can transfer the impact of

inﬂation on key operating parameters (premium adjustments, increase in claims, etc.) to end customers.

The business plans, which are the basis for making value assessment, were prepared with increased

inﬂation in mind and the ability to protect an individual company from the effects of inﬂation. The

negative impact of inﬂation on the value of the considered balance sheet item would therefore be

expressed only through the part of inﬂation that would not be properly taken into account/forecast

when developing business plans or which a company would not be able to contain adequately.

See Section

3.5

for more information about the impairment of investments in subsidiaries.

Impact on real property valuation

The sensitivity of real property to inﬂation is historically relatively low or not negative. Rising rents and

increasing demand for real property, which is considered to preserve real value, tend to neutralise the

negative effects of higher inﬂation on the value of assets.

In valuing real property as at 31 December 2022, due to the rise in prices of basic building materials,

problems with their supply and the rise in service prices, the appraiser took into account 10% higher

costs of the replacement reserve than in 2021.

The Slovenian real property market is characterised by excess demand, which in 2021 and 2022 was

stimulated to the greatest extent by low interest rates and loan availability, and at the end of the year

by the fear of rising inﬂation. Additional pressure on prices was caused by the rise in construction costs

as a result of the global rise in energy and building materials prices, ﬁrst due to the pandemic, and later

due to the war in Ukraine. However, according to the appraiser’s ﬁndings, the ﬁrst signs of a slowdown

in price growth have begun to show at the end of 2022. It is expected that market supply will exceed

creditworthy demand and the sale of residential property will come to an end. In addition to the above,

rising interest rates will have a major impact. All these expectations were taken into account when

determining the fair value of real property as at 31 December 2022. Impairment of real property was

not necessary, which is presented in more detail in sections

3.2

and

3.3

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

229

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.8 Tax policy

The Triglav Group regularly reviews and carefully implements processes for identifying, assessing,

monitoring and managing tax risks, and if necessary, engages external tax consultants. In the process

of tax liability management, the Group’s strategy is pursued, with the main emphasis being on safety

and reliability. In cooperating with tax authorities, the Group is committed to transparency and

responsiveness and to an open and early dialogue. It responds to all inquiries, information or requests in

a timely manner.

The Group’s key tax policies are:



compliance with tax laws and regulations governing taxation,



adapting to new digital business guidelines and



clarity and transparency in communicating about tax matters to various stakeholders.

At Zavarovalnica Triglav, its Accounting Division is responsible for taxation. Individual Group members

are responsible for ensuring compliance with local tax laws, regularly reporting on all tax matters to

Zavarovalnica Triglav’s Accounting Division. Tax rates by different countries where the Group members

operate are presented in Section

2.1.4

The amount of taxes and contributions calculated by individual type is shown below.

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Insurance premium tax

60,722,335

55,497,420

49,806,199

45,732,765

Fees from income of natural persons

(employer's contributions and taxes)

26,151,952

34,312,596

16,004,255

14,829,707

Corporate income tax

25,112,860

20,082,226

20,633,936

11,928,064

Fire fee

5,619,234

5,162,084

5,043,587

4,600,869

Value added tax

5,966,859

3,878,207

1,269,293

1,315,778

Fee for the use of building land

1,036,726

992,342

742,547

717,619

Financial services tax

613,045

725,015

104,215

89,774

Other fees

1,055,105

232,516

Total fees charged in the year

126,630,964

120,882,406

93,604,032

79,214,576

2.9 Segment reporting

2.9.1 Triglav Group segments

Zavarovalnica Triglav’s management monitors the operations of the Triglav Group by business segment

and geographical segment.

Business segments are individual components of the Group’s operations that differ from other business

segments by nature of transaction, type of service and business risks. Business segments for which the

Company’s management separately monitors business results and makes decisions on the allocation of

resources are non-life insurance, life insurance, health insurance and non-insurance operations.

Geographical segments are components of the Group’s operations that differ from other geographical

segments, mainly in terms of geographical location, economic and regulatory environment, which

are subject to different returns and risks. The Company’s management separately monitors business

results and makes decisions on the allocation of resources for the Slovenian market and separately for

foreign markets.

All components of the Group’s operations are included in one of the business segments and in one of

the geographical segments.

The results of a speciﬁc business and geographical segment are assessed based on the proﬁt or loss

achieved by that segment; in addition, the management monitors the amount of assets and liabilities

of speciﬁc segments. All income and expenses items are included in the determination of proﬁt or loss,

and all assets and liabilities items of the Group are included in the monitoring of the amount of assets

and liabilities of speciﬁc segments.

Income and expenses are allocated directly to each segment, but if this is not possible, allocation keys

are adopted for this purpose. Income and expenses from insurance operations are recorded in the

accounting records by speciﬁc insurance class, which are then aggregated into insurance groups. Other

income and expenses and costs are recorded in the accounting records by speciﬁc insurance group and

separately for the Slovenian market and foreign markets. They are classiﬁed in speciﬁc insurance groups

partly directly and partly through deﬁned allocation keys.

Income and expenses from operations of non-insurance companies are fully disclosed under other

income or expenses.

Assets and liabilities are allocated directly to each segment and are already kept separately in the

accounting records by insurance group and geographical segment.

The management monitors the operations of individual segments at the level of non-consolidated

ﬁnancial statements of individual companies, which are summed up for the purposes of analysing the

entire ﬁnancial statements of the Group, without taking into account eliminations from consolidation.

The statement of ﬁnancial position and the income statement by business and geographical segment

are shown below for the reporting and the preceding year.

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

230

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

31 December 2022

Statement of ﬁnancial position

NON-LIFE

LIFE

HEALTH

OTHER

TOTAL

(before eliminations)

ELIMINATIONS

TOTAL

(after eliminations)

ASSETS

2,176,100,199

2,112,703,629

88,062,826

195,057,434

4,571,924,088

-443,099,169

4,128,824,919

Intangible assets

85,700,534

7,466,973

410,239

18,882,003

112,459,749

Property, plant and equipment

91,823,423

10,021,800

1,804,464

4,348,781

107,998,468

Deferred tax assets

20,141,702

21,040,073

2,078,560

270,692

43,531,027

-2,559,580

40,971,447

Investment property

46,695,729

1,208,135

20,473,631

68,377,495

Right of use assets

10,578,968

777,319

428,285

3,035,139

14,819,711

-4,452,086

10,367,625

Investments in subsidiaries

171,768,414

21,249,883

7,500

74,162,546

267,188,343

-267,188,343

Investments in associates

37,369,536

440,648

37,810,184

Financial assets

1,080,399,828

1,972,050,911

72,877,987

41,231,004

3,166,559,730

-1,583,363

3,164,976,367

Financial investments

1,080,399,828

1,400,184,390

72,877,987

41,231,004

2,594,693,209

-1,583,363

2,593,109,846

– loans and deposits

70,108,140

54,550,244

3,451,342

128,109,726

-1,583,363

126,526,363

– held to maturity

456,469,434

– available for sale

995,921,433

706,309,748

72,877,987

35,686,924

1,810,796,092

–

recognised at fair value through proﬁt and loss

14,370,255

182,854,964

2,092,738

199,317,957

Unit-linked insurance assets

571,866,521

Reinsurers’ share of technical provisions

292,026,028

8,871,415

1,587,797

302,485,240

-92,686,223

209,799,017

Receivables

309,766,986

12,713,965

6,809,719

14,281,239

343,571,909

-74,431,263

269,140,646

–

receivables from direct insurance operations

139,543,071

1,996,181

4,822,986

60,453

146,422,691

-720,579

145,702,112

–

receivables from reinsurance and coinsurance operations

142,211,080

231,491

260,700

142,703,271

-61,442,095

81,261,176

– current tax receivables

958,109

5,815

5,740,769

6,704,693

– other receivables

27,054,726

10,480,478

1,726,033

8,480,017

47,741,254

-12,268,589

35,472,665

Other assets

4,469,721

1,033,767

323,744

651,129

6,478,361

-198,311

6,280,050

Cash and cash equivalents

25,161,426

55,828,740

1,734,531

15,736,755

98,461,452

Non-current assets held for sale

197,904

1,984,515

2,182,419

EQUITY AND LIABILITIES

2,176,100,199

2,112,703,629

88,062,826

195,057,434

4,571,924,089

-443,099,169

4,128,824,919

Equity

701,242,554

110,828,057

32,012,221

174,777,994

1,018,860,827

-266,061,964

752,798,863

Controlling interests

701,242,554

110,828,057

32,012,221

174,777,994

1,018,860,827

-269,462,486

749,398,341

– share capital

129,690,864

77,249,393

20,822,144

106,331,530

334,093,931

-260,392,539

73,701,392

– share premium

43,380,681

39,652,231

31,061,946

114,094,858

-63,790,184

50,304,674

– reserves from proﬁt

430,038,432

47,825,525

1,853,961

7,884,580

487,602,498

-5,768,539

481,833,959

– treasury share reserves

364,680

– treasury shares

-364,680

– fair value reserve

-38,962,183

-99,343,389

-5,166,703

14,335,245

-129,137,030

-395,421

-129,532,451

– net proﬁt brought forward

86,529,971

31,913,518

15,665,581

16,768,226

150,877,296

75,015,811

225,893,107

–

net proﬁt for the year

52,531,732

14,490,402

-1,162,762

-1,898,934

63,960,438

-13,700,460

50,259,978

– currency translation differences

-1,966,943

-959,612

-69,278

-2,995,844

-66,475

-3,062,318

Non-controlling interests

3,400,522

Subordinated liabilities

49,522,163

Insurance technical provisions

1,177,721,774

1,392,255,152

41,791,333

2,611,768,259

-92,688,663

2,519,079,596

– unearned premiums

441,382,787

451,984

3,666,189

445,500,960

-31,211,802

414,289,158

– mathematical provisions

1,356,890,816

– claims provisions

708,046,618

21,845,252

19,075,626

748,967,496

-60,179,310

688,788,186

– other insurance technical provisions

28,292,369

13,067,100

19,049,518

60,408,987

-1,297,551

59,111,436

Insurance technical provisions for unit-linked insurance contracts

580,944,539

Employee beneﬁts

13,403,259

2,270,564

842,667

912,618

17,429,108

Other provisions

761,486

29,804

240,099

1,115,498

2,146,887

Deferred tax liabilities

774,194

-1,954,683

4,011,227

2,830,738

-2,571,283

259,455

Other ﬁnancial liabilities

1,935,601

15,965

699,378

2,650,944

-777,385

1,873,559

Operating liabilities

139,984,311

9,023,024

6,261,317

1,218,781

156,487,433

-62,711,883

93,775,550

–

liabilities from direct insurance operations

8,350,506

8,436,881

5,989,540

22,776,927

-1,275,278

21,501,649

–

liabilities from reinsurance and co-insurance operations

121,468,760

512,483

271,777

122,253,020

-61,436,605

60,816,415

– current tax liabilities

10,165,045

73,660

1,218,781

11,457,486

Lease liabilities

10,885,928

795,055

436,456

3,239,155

15,356,594

-4,589,212

10,767,382

Other liabilities

79,868,929

18,496,152

6,478,733

9,082,783

113,926,597

-13,698,780

100,227,817

Non-current liabilities held for sale and discontinued operations

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

231

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

31 December 2021

Statement of ﬁnancial position

NON-LIFE

LIFE

HEALTH

OTHER

TOTAL

(before eliminations)

ELIMINATIONS

TOTAL

(after eliminations)

ASSETS

2,121,657,494

2,293,277,858

106,463,985

207,038,314

4,728,437,651

-354,084,035

4,374,353,616

Intangible assets

80,112,808

8,377,752

663,298

18,030,557

107,184,415

Property, plant and equipment

90,588,295

10,233,472

2,062,448

5,770,997

108,655,212

Deferred tax assets

110,869

101,004

421,898

293,654

927,425

Investment property

46,340,133

1,773,064

22,974,761

71,087,958

4,023,015

75,110,973

Right of use assets

11,276,046

960,258

500,797

2,750,469

15,487,570

-4,554,461

10,933,109

Investments in subsidiaries

126,066,794

13,438,187

70,917,798

210,422,779

-210,422,779

Investments in associates

35,591,376

439,970

36,031,346

Financial assets

1,213,722,046

2,211,229,231

92,219,328

42,731,707

3,559,902,312

-2,584,674

3,557,317,638

Financial investments

1,213,722,046

1,591,611,743

92,219,328

42,731,707

2,940,284,824

-2,584,674

2,937,700,150

– loans and deposits

67,343,910

31,324,538

2,020,763

100,689,211

-2,584,674

98,104,537

– held to maturity

157,560,733

– available for sale

1,134,439,152

870,239,658

92,219,328

40,710,944

2,137,609,082

–

recognised at fair value through proﬁt and loss

11,938,984

532,486,814

544,425,798

Unit-linked insurance assets

619,617,488

Reinsurers’ share of technical provisions

245,721,499

5,789,488

3,140,932

254,651,919

-79,812,029

174,839,890

Receivables

250,038,638

4,281,888

5,792,983

12,889,452

273,002,961

-60,626,052

212,376,909

–

receivables from direct insurance operations

110,522,961

1,647,367

5,344,333

61,240

117,575,901

-720,694

116,855,207

–

receivables from reinsurance and coinsurance operations

114,992,337

196,218

281,728

115,470,283

-48,269,351

67,200,932

– current tax receivables

924,396

13,330

3,189,658

4,127,384

– other receivables

23,598,944

2,424,973

166,922

9,638,554

35,829,393

-11,636,007

24,193,386

Other assets

3,080,138

1,000,430

314,179

555,333

4,950,080

-107,055

4,843,025

Cash and cash equivalents

18,810,948

35,653,114

1,348,122

26,509,446

82,321,630

Non-current assets held for sale

197,904

3,614,140

3,812,044

EQUITY AND LIABILITIES

2,121,657,494

2,293,277,858

106,463,985

207,038,314

4,728,437,651

-354,084,035

4,374,353,616

Equity

743,587,952

168,107,999

40,652,405

185,914,932

1,138,263,288

-205,276,419

932,986,869

Controlling interests

743,587,952

168,107,999

40,652,405

185,914,932

1,138,263,288

-207,752,064

930,511,224

– share capital

113,689,614

55,543,349

20,822,144

103,344,414

293,399,521

-219,698,129

73,701,392

– share premium

43,511,478

13,658,827

21,061,946

78,232,251

-27,948,504

50,283,747

– reserves from proﬁt

369,676,651

47,734,549

1,853,961

1,598,175

420,863,336

770,623

421,633,959

– treasury share reserves

364,680

– treasury shares

-364,680

– fair value reserve

52,410,528

6,571,912

813,221

19,058,145

78,853,806

-1,019,528

77,834,278

– net proﬁt brought forward

115,164,702

36,678,335

11,403,820

33,876,580

197,123,437

37,465,557

234,588,994

–

net proﬁt for the year

51,103,020

8,814,962

5,759,259

6,673,325

72,350,566

3,089,281

75,439,847

– currency translation differences

-1,968,041

-893,935

-62,333

-2,924,309

-46,684

-2,970,993

Non-controlling interests

2,475,645

Subordinated liabilities

49,471,831

Insurance technical provisions

1,130,247,082

1,472,413,320

53,551,980

2,656,212,382

-79,843,998

2,576,368,384

– unearned premiums

386,311,527

454,613

3,614,672

390,380,812

-20,337,087

370,043,725

– mathematical provisions

1,432,613,660

– claims provisions

711,964,825

23,114,787

16,058,686

751,138,298

-56,639,987

694,498,311

– other insurance technical provisions

31,970,730

16,230,260

33,878,622

82,079,612

-2,866,924

79,212,688

Insurance technical provisions for unit-linked insurance contracts

622,303,399

Employee beneﬁts

13,617,610

2,335,076

872,627

846,820

17,672,133

Other provisions

1,053,458

26,518

182,905

1,249,655

2,512,536

Deferred tax liabilities

2,186,148

1,914,479

5,288,143

9,388,770

-11,736

9,377,034

Other ﬁnancial liabilities

4,871,905

25,666

810,018

5,707,589

-2,621,942

3,085,647

Operating liabilities

98,011,738

8,890,090

6,073,859

27,549

113,003,236

-49,661,578

63,341,658

–

liabilities from direct insurance operations

6,949,487

8,165,901

5,518,766

20,634,154

-1,183,597

19,450,557

–

liabilities from reinsurance and co-insurance operations

88,834,137

697,681

187,628

89,719,446

-48,477,981

41,241,465

– current tax liabilities

2,228,114

26,508

367,465

27,549

2,649,636

Lease liabilities

11,606,194

904,600

510,009

2,935,103

15,955,906

-4,681,100

11,274,806

Other liabilities

67,003,576

16,356,711

4,620,200

9,966,094

97,946,581

-11,987,262

85,959,319

Non-current liabilities held for sale and discontinued operations

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

232

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

2022

2021

Income statement

NON-LIFE

LIFE

HEALTH

OTHER

TOTAL

NON-LIFE

LIFE

HEALTH

OTHER

TOTAL

Net premium income

725,629,617

260,098,110

204,177,888

1,189,905,615

677,079,548

244,584,435

198,182,068

1,119,846,051

– gross written premium

1,009,172,823

266,160,975

204,223,289

1,479,557,087

904,500,010

250,160,945

198,314,595

1,352,975,550

– ceded written premium

-248,921,289

-6,065,121

-254,986,410

-215,369,686

-5,580,189

-220,949,875

–

change in unearned premium reserve

-34,621,917

2,256

-45,401

-34,665,062

-12,050,776

3,679

-132,527

-12,179,624

Income from investments in subsidiaries and associates

1,841,505

678

1,842,183

1,093,864

350,190

1,444,054

–

proﬁt on equity investments accounted for using the equity method

1,841,505

678

1,842,183

1,093,864

350,190

1,444,054

–

other income from investments in subsidiaries and associates

Income from investments

40,616,373

50,057,369

827,649

54,990

91,556,381

23,313,042

131,084,839

881,499

59,791

155,339,171

–

interest income calculated using the effective interest method

10,438,732

23,421,577

500,645

40,665

34,401,619

10,513,512

23,153,778

569,890

44,099

34,281,279

– gains on disposals

23,511,658

14,089,269

163,601

10,914

37,775,442

6,288,821

9,795,552

203,031

13,936

16,301,340

– other income from investments

6,665,983

12,546,523

163,403

3,411

19,379,320

6,510,709

98,135,509

108,578

1,756

104,756,552

Other income from insurance operations

56,734,123

2,315,408

885,454

59,934,985

46,745,180

1,976,072

73,048

48,794,300

– fees and commission income

46,900,776

2,284,113

49,184,889

36,966,451

1,949,637

38,916,088

–

other income from insurance operations

9,833,347

31,295

885,454

10,750,096

9,778,729

26,435

73,048

9,878,212

Other income

9,415,112

189,920

97,076

50,124,021

59,826,129

11,211,689

428,125

109,532

41,584,714

53,334,060

Net claims incurred

370,254,786

182,690,242

193,787,403

746,732,431

363,348,949

185,440,722

166,239,117

715,028,788

– gross claims settled

463,442,125

185,401,039

183,387,377

832,230,541

393,254,881

185,673,862

157,651,307

736,580,050

– reinsurers’ share

-58,416,618

-1,489,120

-1,942

-59,907,680

-42,961,049

-1,924,694

1,283

-44,884,460

– changes in claims provisions

-34,770,721

-1,221,677

3,016,730

-32,975,668

13,055,117

1,691,554

1,405,723

16,152,394

–

equalisation scheme expenses for supplementary health insurance

7,385,238

7,180,804

Change in other insurance technical provisions (excluding ULI)

67,049

-67,578,173

-11,530,655

-79,041,779

-503,642

-10,008,883

8,399,117

-2,113,408

Change in insurance technical provisions for unit-linked insurance contracts

-43,787,917

112,661,349

Expenses for bonuses and discounts

10,786,607

14,233

-2,090

10,798,750

11,392,922

11,221

11,404,143

Operating expenses

237,351,894

46,880,107

17,696,129

301,928,130

209,838,574

41,771,953

15,247,381

266,857,908

– acquisition costs

177,993,251

29,683,424

3,752,613

211,429,288

155,114,037

26,761,666

3,035,467

184,911,170

– other operating costs

59,358,643

17,196,683

13,943,516

90,498,842

54,724,537

15,010,287

12,211,914

81,946,738

Expenses from investments in subsidiaries and associates

135,453

10,179

145,632

–

loss on investments accounted for using the equity method

135,453

10,179

145,632

–

other expenses from ﬁnancial assets and liabilities

Expenses from investments

25,208,897

173,730,559

1,858,374

847,069

201,644,899

6,780,978

24,870,022

92,945

88,841

31,832,786

–

loss on impairment of investments

4,646,874

3,506,616

881,246

9,034,736

29,285

4,343

33,628

–

loss on disposal of investments

13,949,589

35,523,691

868,137

346

50,341,763

1,720,014

5,384,202

18,116

407

7,122,739

– other expenses from investments

6,612,434

134,700,252

108,991

846,723

142,268,400

5,031,679

19,481,477

74,829

88,434

24,676,419

Other insurance expenses

57,320,881

905,640

1,270,062

59,496,583

50,434,727

991,677

489,536

51,915,940

Other expenses

29,243,604

3,233,474

920,111

37,356,777

70,753,966

20,779,040

2,696,207

792,471

34,111,935

58,379,653

– expenses from ﬁnancing

2,500,105

42,818

188,304

2,731,227

2,465,509

55,600

208,177

2,729,286

– other expenses

26,743,499

3,190,656

920,111

37,168,473

68,022,739

18,313,531

2,640,607

792,471

33,903,758

55,650,367

Proﬁt before tax

104,003,012

16,573,320

1,988,733

11,975,165

134,540,230

97,236,322

19,629,024

7,985,580

7,793,919

132,644,845

Income tax expense

18,990,486

2,809,389

-253,864

2,777,541

24,323,552

15,130,729

974,805

1,469,393

2,104,225

19,679,152

NET PROFIT FOR THE PERIOD

85,012,526

13,763,931

2,242,597

9,197,624

110,216,678

82,105,593

18,654,219

6,516,187

5,689,694

112,965,693

Net proﬁt/loss attributable to the controlling company

84,958,080

13,753,059

2,242,597

9,506,242

110,459,978

81,973,513

18,650,761

6,516,187

5,621,353

112,761,814

Net proﬁt/loss attributable to the non-controlling interest holders

54,446

10,872

-308,618

-243,300

132,080

3,458

68,341

203,879

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

233

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

31 December 2022

Statement of ﬁnancial position

SLOVENIA

OTHER

TOTAL

(before eliminations)

ELIMINATIONS

TOTAL

(after eliminations)

ASSETS

4,034,615,290

537,308,798

4,571,924,088

-443,099,169

4,128,824,919

Intangible assets

90,893,228

21,566,521

112,459,749

Property, plant and equipment

71,092,819

36,905,649

107,998,468

Deferred tax assets

40,268,086

3,262,941

43,531,027

-2,559,580

40,971,447

Investment property

62,494,753

5,882,742

68,377,495

Right of use assets

7,542,429

7,277,282

14,819,711

-4,452,086

10,367,625

Investments in subsidiaries

261,302,480

5,885,863

267,188,343

-267,188,343

Investments in associates

37,810,184

Financial assets

2,870,210,561

296,349,169

3,166,559,730

-1,583,363

3,164,976,367

Financial investments

2,321,724,897

272,968,312

2,594,693,209

-1,583,363

2,593,109,846

– loans and deposits

66,490,372

61,619,354

128,109,726

-1,583,363

126,526,363

– held to maturity

448,967,712

7,501,722

456,469,434

– available for sale

1,627,938,498

182,857,594

1,810,796,092

–

recognised at fair value through proﬁt and loss

178,328,315

20,989,642

199,317,957

Unit-linked insurance assets

548,485,664

23,380,857

571,866,521

Reinsurers’ share of technical provisions

252,472,014

50,013,226

302,485,240

-92,686,223

209,799,017

Receivables

271,366,036

72,205,873

343,571,909

-74,431,263

269,140,646

–

receivables from direct insurance operations

104,221,217

42,201,474

146,422,691

-720,579

145,702,112

–

receivables from reinsurance and coinsurance operations

125,597,707

17,105,564

142,703,271

-61,442,095

81,261,176

– current tax receivables

6,106,570

598,123

6,704,693

– other receivables

35,440,542

12,300,712

47,741,254

-12,268,589

35,472,665

Other assets

3,079,189

3,399,172

6,478,361

-198,311

6,280,050

Cash and cash equivalents

64,148,373

34,313,079

98,461,452

Non-current assets held for sale

1,935,138

247,281

2,182,419

EQUITY AND LIABILITIES

4,034,615,290

537,308,798

4,571,924,088

-443,099,169

4,128,824,919

Equity

891,756,334

127,104,493

1,018,860,827

-266,061,965

752,798,863

Controlling interests

891,756,334

127,104,493

1,018,860,827

-269,462,487

749,398,341

– share capital

211,194,463

122,899,469

334,093,932

-260,392,540

73,701,392

– share premium

112,205,859

1,888,999

114,094,858

-63,790,184

50,304,674

– reserves from proﬁt

476,413,471

11,189,026

487,602,497

-5,768,538

481,833,959

– treasury share reserves

364,680

– treasury shares

-364,680

– fair value reserve

-112,483,389

-16,653,641

-129,137,030

-395,421

-129,532,451

– net proﬁt brought forward

141,127,910

9,749,386

150,877,296

75,015,811

225,893,107

–

net proﬁt/loss for the year

62,933,340

1,027,098

63,960,438

-13,700,460

50,259,978

– currency translation differences

-2,995,844

-66,475

-3,062,318

Non-controlling interests

3,400,522

Subordinated liabilities

49,522,163

Insurance technical provisions

2,292,914,917

318,853,342

2,611,768,259

-92,688,663

2,519,079,596

– unearned premiums

334,538,645

110,962,315

445,500,960

-31,211,802

414,289,158

– mathematical provisions

1,260,182,283

96,708,533

1,356,890,816

– claims provisions

640,408,091

108,559,405

748,967,496

-60,179,310

688,788,186

– other insurance technical provisions

57,785,898

2,623,089

60,408,987

-1,297,551

59,111,436

Insurance technical provisions for unit-linked insurance contracts

557,670,060

23,274,479

580,944,539

Employee beneﬁts

14,117,696

3,311,412

17,429,108

Other provisions

1,349,054

797,833

2,146,887

Deferred tax liabilities

2,007,770

822,968

2,830,738

-2,571,283

259,455

Other ﬁnancial liabilities

1,615,994

1,034,949

2,650,943

-777,384

1,873,559

Operating liabilities

126,276,645

30,210,788

156,487,433

-62,711,883

93,775,550

–

liabilities from direct insurance operations

18,661,600

4,115,327

22,776,927

-1,275,278

21,501,649

–

liabilities from reinsurance and co-insurance operations

96,717,362

25,535,658

122,253,020

-61,436,605

60,816,415

– current tax liabilities

10,897,683

559,803

11,457,486

Lease liabilities

7,720,133

7,636,461

15,356,594

-4,589,212

10,767,382

Other liabilities

89,664,524

24,262,073

113,926,597

-13,698,779

100,227,817

Non-current liabilities held for sale and discontinued operations

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

234

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

31 December 2021

Statement of ﬁnancial position

SLOVENIA

OTHER

TOTAL

(before eliminations)

ELIMINATIONS

TOTAL

(after eliminations)

ASSETS

4,209,162,813

519,274,838

4,728,437,651

-354,084,035

4,374,353,616

Intangible assets

87,040,191

20,144,224

107,184,415

Property, plant and equipment

70,597,438

38,057,774

108,655,212

Deferred tax assets

702,993

224,432

927,425

Investment property

65,830,986

5,256,972

71,087,958

4,023,015

75,110,973

Right of use assets

7,819,804

7,667,766

15,487,570

-4,554,461

10,933,109

Investments in subsidiaries

204,614,572

5,808,207

210,422,779

-210,422,779

Investments in associates

36,031,346

Financial assets

3,267,043,376

292,858,936

3,559,902,312

-2,584,674

3,557,317,638

Financial investments

2,674,514,711

265,770,113

2,940,284,824

-2,584,674

2,937,700,150

– loans and deposits

50,234,018

50,455,193

100,689,211

-2,584,674

98,104,537

– held to maturity

149,195,563

8,365,170

157,560,733

– available for sale

1,947,934,174

189,674,908

2,137,609,082

–

recognised at fair value through proﬁt and loss

527,150,956

17,274,842

544,425,798

Unit-linked insurance assets

592,528,665

27,088,823

619,617,488

Reinsurers’ share of technical provisions

201,524,459

53,127,460

254,651,919

-79,812,029

174,839,890

Receivables

205,351,678

67,651,283

273,002,961

-60,626,052

212,376,909

–

receivables from direct insurance operations

79,378,490

38,197,411

117,575,901

-720,694

116,855,207

–

receivables from reinsurance and coinsurance operations

97,809,626

17,660,657

115,470,283

-48,269,351

67,200,932

– current tax receivables

3,733,579

393,805

4,127,384

– other receivables

24,429,983

11,399,410

35,829,393

-11,636,007

24,193,386

Other assets

2,136,932

2,813,148

4,950,080

-107,055

4,843,025

Cash and cash equivalents

56,904,412

25,417,218

82,321,630

Non-current assets held for sale

3,564,626

247,418

3,812,044

EQUITY AND LIABILITIES

4,209,162,813

519,274,838

4,728,437,651

-354,084,035

4,374,353,616

Equity

1,009,582,130

128,681,158

1,138,263,288

-205,276,419

932,986,869

Controlling interests

1,009,582,130

128,681,158

1,138,263,288

-207,752,064

930,511,224

– share capital

192,180,918

101,218,603

293,399,521

-219,698,129

73,701,392

– share premium

76,212,455

2,019,796

78,232,251

-27,948,504

50,283,747

– reserves from proﬁt

410,086,847

10,776,489

420,863,336

770,623

421,633,959

– treasury share reserves

364,680

– treasury shares

-364,680

– fair value reserve

73,779,454

5,074,352

78,853,806

-1,019,528

77,834,278

– net proﬁt brought forward

192,565,348

4,558,089

197,123,437

37,465,557

234,588,994

–

net proﬁt/loss for the year

64,392,428

7,958,138

72,350,566

3,089,281

75,439,847

– currency translation differences

-2,924,309

-46,684

-2,970,993

Non-controlling interests

2,475,645

Subordinated liabilities

49,471,831

Insurance technical provisions

2,354,629,760

301,582,622

2,656,212,382

-79,843,998

2,576,368,384

– unearned premiums

291,969,004

98,411,808

390,380,812

-20,337,087

370,043,725

– mathematical provisions

1,345,183,071

87,430,589

1,432,613,660

– claims provisions

638,293,195

112,845,103

751,138,298

-56,639,987

694,498,311

– other insurance technical provisions

79,184,490

2,895,122

82,079,612

-2,866,924

79,212,688

Insurance technical provisions for unit-linked insurance contracts

595,544,240

26,759,158

622,303,399

Employee beneﬁts

14,696,255

2,975,878

17,672,133

Other provisions

1,598,604

913,932

2,512,536

Deferred tax liabilities

7,916,794

1,471,976

9,388,770

-11,736

9,377,034

Other ﬁnancial liabilities

2,873,112

2,834,477

5,707,589

-2,621,942

3,085,647

Operating liabilities

83,749,408

29,253,828

113,003,236

-49,661,578

63,341,658

–

liabilities from direct insurance operations

16,753,335

3,880,819

20,634,154

-1,183,597

19,450,557

–

liabilities from reinsurance and co-insurance operations

64,585,731

25,133,715

89,719,446

-48,477,981

41,241,465

– current tax liabilities

2,410,342

239,294

2,649,636

Lease liabilities

7,976,199

7,979,707

15,955,906

-4,681,100

11,274,806

Other liabilities

81,124,480

16,822,102

97,946,582

-11,987,263

85,959,319

Non-current liabilities held for sale and discontinued operations

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

235

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

2022

2021

Income statement

SLOVENIA

OTHER

TOTAL

SLOVENIA

OTHER

TOTAL

Net premium income

958,065,989

231,839,626

1,189,905,615

906,255,858

213,590,193

1,119,846,051

– gross written premium

1,190,965,875

288,591,212

1,479,557,087

1,096,280,433

256,695,117

1,352,975,550

– ceded written premium

-209,405,140

-45,581,270

-254,986,410

-180,456,640

-40,493,235

-220,949,875

–

change in unearned premium reserve

-23,494,746

-11,170,316

-34,665,062

-9,567,935

-2,611,689

-12,179,624

Income from investments in subsidiaries and associates

1,842,183

1,444,054

–

proﬁt on equity investments accounted for using the equity method

1,842,183

1,444,054

–

other income from investments in subsidiaries and associates

Income from investments

83,766,268

7,790,113

91,556,381

143,978,937

11,360,234

155,339,171

–

interest income calculated using the effective interest method

28,235,063

6,166,556

34,401,619

28,027,866

6,253,413

34,281,279

– gains on disposals

37,748,974

26,468

37,775,442

15,883,514

417,826

16,301,340

– other income from investments

17,782,231

1,597,089

19,379,320

100,067,557

4,688,995

104,756,552

Other income from insurance operations

48,877,912

11,057,073

59,934,985

39,799,148

8,995,152

48,794,300

– fees and commission income

41,536,713

7,648,176

49,184,889

32,848,742

6,067,346

38,916,088

–

other income from insurance operations

7,341,199

3,408,897

10,750,096

6,950,406

2,927,806

9,878,212

Other income

52,375,306

7,450,823

59,826,129

41,096,092

12,237,968

53,334,060

Net claims incurred

618,904,582

127,827,849

746,732,431

596,436,554

118,592,234

715,028,788

– gross claims settled

695,224,251

137,006,290

832,230,541

612,775,009

123,805,041

736,580,050

– reinsurers’ share

-47,780,703

-12,126,977

-59,907,680

-35,058,683

-9,825,777

-44,884,460

– changes in claims provisions

-35,924,204

2,948,536

-32,975,668

11,539,424

4,612,970

16,152,394

–

equalisation scheme expenses for supplementary health insurance

7,385,238

7,180,804

Change in other insurance technical provisions (excluding ULI)

-84,772,001

5,730,222

-79,041,779

-7,719,847

5,606,439

-2,113,408

Change in insurance technical provisions for unit-linked insurance contracts

-40,494,749

-3,293,168

-43,787,917

108,609,475

4,051,874

112,661,349

Expenses for bonuses and discounts

9,151,979

1,646,771

10,798,750

10,490,542

913,601

11,404,143

Operating expenses

212,764,433

89,163,697

301,928,130

185,659,845

81,198,063

266,857,908

– acquisition costs

143,103,607

68,325,681

211,429,288

124,303,436

60,607,734

184,911,170

– other operating costs

69,660,826

20,838,016

90,498,842

61,356,409

20,590,329

81,946,738

Expenses from investments in subsidiaries and associates

145,632

–

loss on investments accounted for using the equity method

145,632

–

other expenses from ﬁnancial assets and liabilities

Expenses from investments

195,571,582

6,073,317

201,644,899

30,608,229

1,224,557

31,832,786

–

loss on impairment of investments

9,032,989

1,747

9,034,736

33,628

–

loss on disposal of investments

50,332,452

9,311

50,341,763

7,101,695

21,044

7,122,739

– other expenses from investments

136,206,141

6,062,259

142,268,400

23,506,534

1,169,885

24,676,419

Other insurance expenses

53,184,760

6,311,823

59,496,583

46,552,182

5,363,758

51,915,940

Other expenses

55,812,390

14,941,576

70,753,966

48,575,954

9,803,699

58,379,653

– expenses from ﬁnancing

2,336,102

395,125

2,731,227

2,304,423

424,863

2,729,286

– other expenses

53,476,288

14,546,451

68,022,739

46,271,531

9,378,836

55,650,367

Proﬁt before tax

124,804,682

9,735,548

134,540,230

113,215,523

19,429,322

132,644,845

Income tax expense

23,960,861

362,691

24,323,552

18,425,518

1,253,634

19,679,152

NET PROFIT FOR THE PERIOD

100,843,821

9,372,857

110,216,678

94,790,005

18,175,688

112,965,693

Net proﬁt/loss attributable to the controlling company

100,843,821

9,616,157

110,459,978

94,790,005

17,971,809

112,761,814

Net proﬁt/loss attributable to the non-controlling interest holders

-243,300

203,879

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

236

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.9.2 Business segments of Zavarovalnica Triglav

In accordance with the requirements of the Decision on annual reports and quarterly ﬁnancial statements of insurance undertakings (Ofﬁcial Gazette of the Republic of Slovenia, No. 1/16),

the Company’s operations are described by speciﬁc business segments.

in EUR

31 December 2022

31 December 2021

Statement of ﬁnancial position

NON-LIFE

LIFE

TOTAL

NON-LIFE

LIFE

TOTAL

ASSETS

1,435,563,635

1,496,632,978

2,932,196,613

1,425,009,986

1,704,592,224

3,129,602,210

Intangible assets

63,071,014

7,343,311

70,414,326

58,793,824

8,228,203

67,022,027

Property, plant and equipment

59,340,077

7,944,927

67,285,004

57,022,314

8,120,993

65,143,307

Deferred tax assets

15,415,208

19,251,972

34,667,180

Investment property

43,095,689

281,484

43,377,173

43,019,770

820,285

43,840,055

Right of use assets

3,940,725

4,548,298

Investments in subsidiaries

166,826,654

18,533,689

185,360,343

120,444,672

11,480,011

131,924,683

Investments in associates

41,951,871

41,693,997

Financial assets

698,915,782

1,416,890,936

2,115,806,718

841,558,081

1,666,539,870

2,508,097,951

Financial investments

698,915,782

926,272,088

1,625,187,871

841,558,081

1,127,121,898

1,968,679,979

– loans and deposits

22,088,137

9,768,303

31,856,441

25,488,933

7,032,590

32,521,523

– held to maturity

227,656,974

140,946,233

– available for sale

676,827,645

601,920,312

1,278,747,957

816,048,831

772,341,432

1,588,390,263

–

recognised at fair value through proﬁt and loss

86,926,499

20,317

206,801,643

206,821,960

Unit-linked insurance assets

490,618,848

539,417,972

Reinsurers’ share of technical provisions

180,101,977

40,963

180,142,940

135,986,397

91,560

136,077,957

Receivables

154,183,507

9,611,595

163,795,102

113,944,682

1,883,002

115,827,684

–

receivables from direct insurance operations

98,522,971

216,748

98,739,720

73,285,008

231,566

73,516,574

–

receivables from reinsurance and coinsurance operations

37,153,635

2,538

37,156,172

23,516,494

5,846

23,522,340

– current tax receivables

564,166

– other receivables

18,506,901

9,392,309

27,899,210

16,579,014

1,645,590

18,224,604

Other assets

2,352,519

37,471

2,389,990

1,463,755

49,505

1,513,260

Cash and cash equivalents

6,368,612

16,696,630

23,065,241

6,534,196

7,378,795

13,912,991

EQUITY AND LIABILITIES

1,435,563,635

1,496,632,978

2,932,196,613

1,425,009,986

1,704,592,224

3,129,602,210

Equity

543,041,098

9,048,243

552,089,340

577,396,816

97,825,117

675,221,933

– share capital

51,340,540

22,360,852

73,701,392

51,340,540

22,360,852

73,701,392

– share premium

40,344,978

13,067,907

53,412,884

40,344,978

13,067,907

53,412,884

– reserves from proﬁt

419,248,752

45,513,891

464,762,643

359,048,752

45,513,891

404,562,643

– fair value reserve

-15,140,347

-88,416,509

-103,556,856

52,861,390

3,023,244

55,884,634

– net proﬁt brought forward

3,497,205

43,310,026

7,634,805

50,944,831

–

net proﬁt for the year

43,749,970

16,522,102

60,272,072

30,491,131

6,224,418

36,715,549

Subordinated liabilities

49,522,163

49,471,831

Insurance technical provisions

706,537,944

971,210,522

1,677,748,467

696,332,340

1,044,040,846

1,740,373,186

– unearned premiums

275,914,934

386,566

276,301,501

245,629,454

388,396

246,017,850

– mathematical provisions

944,548,259

1,008,319,155

– claims provisions

406,656,449

20,244,749

426,901,198

425,072,536

21,494,719

446,567,255

– other insurance technical provisions

23,966,561

6,030,948

29,997,509

25,630,350

13,838,576

39,468,926

Insurance technical provisions for unit-linked insurance contracts

495,682,803

540,135,052

Employee beneﬁts

10,301,838

2,079,636

12,381,473

10,763,216

2,079,089

12,842,305

Other provisions

154,638

342,266

16,714

358,980

Deferred tax liabilities

973,178

3,239,555

4,212,733

Other ﬁnancial liabilities

22,640

1,690,586

Operating liabilities

61,220,200

6,240,352

67,460,551

28,724,774

6,136,780

34,861,554

–

liabilities from direct insurance operations

5,317,350

6,230,328

11,547,677

4,053,234

6,129,711

10,182,945

–

liabilities from reinsurance and co-insurance operations

46,205,379

10,024

46,215,403

24,671,540

7,069

24,678,609

– current tax liabilities

9,697,471

Lease liabilities

4,054,668

4,643,844

Other liabilities

60,708,446

12,371,422

73,079,868

54,671,134

11,119,071

65,790,206

All items disclosed in the statement of ﬁnancial position by business segment are not offset.

The amount of the balance sheet total after offsetting is shown below.

in EUR

31 December 2022

31 December 2021

Balance sheet total (without offsetting)

2,932,196,613

3,129,602,210

Mutual receivables and liabilities

-11,730,131

-10,658,116

Deffered tax assets and liabilities

Offset balance

2,920,466,482

3,118,944,094

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

237

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

2022

2021

Income statement

NON-LIFE

LIFE

TOTAL

NON-LIFE

LIFE

TOTAL

Net premium income

429,820,611

197,854,778

627,675,389

411,222,504

187,532,496

598,755,000

– gross written premium

670,083,437

198,780,186

868,863,623

606,009,493

188,340,610

794,350,103

– ceded written premium

-222,050,006

-927,008

-222,977,014

-187,144,606

-825,143

-187,969,749

–

change in unearned premium reserve

-18,212,820

1,600

-18,211,220

-7,642,383

17,029

-7,625,354

Income from investments in subsidiaries and associates

29,175,149

3,712,193

32,887,342

8,179,885

–

proﬁt on equity investments accounted for using the equity method

–

other income from investments in subsidiaries and associates

29,175,149

3,712,193

32,887,342

8,179,885

Income from investments

30,842,470

33,852,123

64,694,593

14,196,067

101,416,831

115,612,898

–

interest income calculated using the effective interest method

4,210,389

15,410,533

19,620,922

4,517,587

15,168,297

19,685,884

– gains on disposals

21,408,415

12,917,050

34,325,465

5,599,009

9,289,495

14,888,504

– other income from investments

5,223,666

5,524,540

10,748,206

4,079,471

76,959,039

81,038,510

Other income from insurance operations

52,871,824

5,664,466

58,536,290

40,177,409

5,209,624

45,387,033

– fees and commission income

45,240,980

5,663,746

50,904,726

32,989,482

5,206,895

38,196,377

–

other income from insurance operations

7,630,844

720

7,631,564

7,187,927

2,729

7,190,656

Other income

10,249,268

787,069

11,036,337

7,933,559

892,287

8,825,846

Net claims incurred

193,719,737

152,687,532

346,407,269

207,492,094

157,645,131

365,137,225

– gross claims settled

298,242,176

154,213,675

452,455,851

252,725,831

156,142,551

408,868,382

– reinsurers’ share

-49,612,866

-326,541

-49,939,407

-35,569,203

-249,755

-35,818,958

– changes in claims provisions

-54,909,573

-1,199,602

-56,109,175

-9,664,534

1,752,335

-7,912,199

Change in other insurance technical provisions (excluding ULI)

610,277

-57,326,876

-56,716,599

-161,262

-13,827,965

-13,989,227

Change in insurance technical provisions for unit-linked insurance contracts

-47,072,818

91,860,583

Expenses for bonuses and discounts

9,167,812

10,490,736

Operating expenses

154,279,681

39,984,903

194,264,584

134,499,756

35,835,110

170,334,866

– acquisition costs

114,854,039

27,714,966

142,569,005

98,861,653

25,406,907

124,268,560

– other operating costs

39,425,642

12,269,937

51,695,579

35,638,103

10,428,203

46,066,306

Expenses from investments in subsidiaries and associates

3,056,317

946,158

4,002,475

1,087,047

–

loss on investments accounted for using the equity method

–

other expenses from ﬁnancial assets and liabilities

3,056,317

946,158

4,002,475

1,087,047

Expenses from investments

19,965,522

129,467,583

149,433,105

5,475,499

12,891,188

18,366,687

–

loss on impairment of investments

2,927,051

3,506,390

6,433,441

–

loss on disposal of investments

11,919,826

34,606,858

46,526,684

1,691,092

5,178,925

6,870,017

– other expenses from investments

5,118,645

91,354,335

96,472,980

3,784,407

7,712,263

11,496,670

Other insurance expenses

27,049,929

860,439

27,910,368

24,354,804

943,693

25,298,497

Other expenses

23,993,453

3,082,438

27,075,891

19,932,095

2,553,542

22,485,637

– expenses from ﬁnancing

2,286,174

3,386

2,289,560

2,276,328

1,564

2,277,892

– other expenses

21,707,279

3,079,052

24,786,331

17,655,767

2,551,978

20,207,745

Proﬁt before tax

121,116,594

19,241,270

140,357,864

78,538,655

7,149,956

85,688,611

Income tax expense

17,166,624

2,719,167

19,885,791

11,347,522

925,540

12,273,062

NET PROFIT FOR THE PERIOD

103,949,970

16,522,103

120,472,073

67,191,133

6,224,416

73,415,549

in EUR

2022

2021

Comprehensive income by business segments

NON-LIFE

LIFE

TOTAL

NON-LIFE

LIFE

TOTAL

Net proﬁt for the year after tax

103,949,970

16,522,103

120,472,073

67,191,131

6,224,418

73,415,549

Other comprehensive income after tax

-68,051,744

-91,432,871

-159,484,615

3,437,170

-6,984,207

-3,547,037

Items which will not be transferred in P&L in future periods

1,040,035

205,702

1,245,737

138,303

26,408

164,711

Actuarial gains and losses related to post-employment beneﬁts on retirement

1,040,035

205,702

1,245,737

138,303

26,408

164,711

Tax on items which will not be transferred in P&L

Items which could be transferred into P&L in future periods

-69,091,779

-91,638,573

-160,730,352

3,298,867

-7,010,615

-3,711,748

Fair value gains/losses on available-for-sale ﬁnancial assets

-85,298,492

-125,105,429

-210,403,921

4,072,638

-36,752,119

-32,679,481

–

net gains/losses recognized directly in fair value reserve

-60,034,737

-111,585,788

-171,620,525

12,380,157

-25,942,976

-13,562,819

–

transfers from fair value reserve to income statement

-25,263,755

-13,519,641

-38,783,396

-8,307,519

-10,809,143

-19,116,662

Liabilities from insurance contracts with DPF

11,541,802

23,304,304

Tax on other comprehensive income

16,206,713

21,925,054

38,131,767

-773,771

6,437,200

5,663,429

COMPREHENSIVE INCOME OR LOSS FOR THE YEAR AFTER TAX

35,898,226

-74,910,768

-39,012,542

70,628,301

-759,789

69,868,512

Notes to the ﬁnancial statements

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Risk Management

Accounting Report

238

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.9.3 Additional disclosures of the Triglav Group and

Zavarovalnica Triglav

Depreciation and amortisation expenses by business segment are disclosed under operating expenses

in Section

4.12

The values of purchased intangible assets, property, plant and equipment and investment property by

business segment are shown in the table below:

in EUR

Triglav Group

Non-

2022

Non-life

Life

Health

insurance

TOTAL

Investments in intangible assets

7,704,512

2,582,858

34,056

2,311,108

12,632,534

Investments in property, plant and equipment

8,735,825

213,605

241,778

929,961

10,121,169

2,586,628

Investments in investment property

1,152,492

1,434,136

in EUR

Triglav Group

Non-

2021

Non-life

Life

Health

insurance

TOTAL

Investments in intangible assets

10,868,526

5,492,221

51,503

689,454

17,101,703

Investments in property, plant and equipment

4,383,310

222,963

463,851

543,795

5,613,921

Investments in investment property

633,222

10,258

942,371

1,585,851

The highest exposure of Triglav Group to individual ﬁnancial institutions is:



in non-life insurance, exposure to Kreditanstalt für Wiederaufbau of EUR 61,579,803



in life insurance, exposure to Kreditanstalt für Wiederaufbau of EUR 35,699,523



in health insurance, exposure to Kreditanstalt für Wiederaufbau of EUR 8,525,985



in non-insurance, exposure to Nova KBM, d.d. of EUR 7,498,494.

in EUR

Zavarovalnica Triglav

2022

Non-life

Life

TOTAL

ADDITIONAL DISCLOSURES FROM THE STATEMENT OF

FINANCIAL POSITION

Investments in intangible assets

6,566,488

2,545,370

9,111,858

Investments in property, plant and equipment

6,811,231

45,135

6,856,366

Investments in investment property

1,152,492

ADDITIONAL DISCLOSURES FROM THE INCOME STATEMENT

Depreciation charge for the current year

-12,252,817

-3,630,570

-15,883,387

Depreciation of right of use assets

-1,004,900

-209,032

-1,213,932

Expenses from the impairment of premium and

subrogation receivables

-8,626,544

-2,855

-8,629,399

Income from reversal of impairment of receivables

8,231,348

Expenses from impairment of investment property

Expenses from impairment of other receivables

-71,268

Income from reversal of impairment of other receivables

69,128

7,106

76,234

in EUR

Zavarovalnica Triglav

2021

Non-life

Life

TOTAL

ADDITIONAL DISCLOSURES FROM THE STATEMENT OF

FINANCIAL POSITION

Investments in intangible assets

10,012,022

5,434,848

15,446,870

Investments in property, plant and equipment

2,424,416

148,325

2,572,740

Investments in investment property

631,433

10,258

641,690

ADDITIONAL DISCLOSURES FROM THE INCOME STATEMENT

Depreciation charge for the current year

-10,567,162

-2,572,023

-13,139,185

Depreciation of right of use assets

-967,958

-218,634

-1,186,592

Expenses from the impairment of premium and

subrogation receivables

-9,712,692

-3,818

-9,716,510

Income from reversal of impairment of receivables

8,610,007

Expenses from impairment of investment property

Expenses from impairment of other receivables

-62,736

Income from reversal of impairment of other receivables

44,413

Maximum individual exposure of Zavarovalnica Triglav to ﬁnancial institutions is:



for non-life insurance: Kreditanstalt für Wiederaufbau: EUR 43,054,693 and



for life insurance: SID-Slovenska izvozna in razvojna banka, d.d., Ljubljana: EUR 15,217,612.

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

239

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

2.10 The impact of new or amended standards on

the preparation of ﬁnancial statements

The accounting policies used in the preparation of the consolidated and separate ﬁnancial statements are

consistent with those of the consolidated and separate ﬁnancial statements of Zavarovalnica Triglav for

the ﬁnancial year ended 31 December 2021, except for the new or amended standards and interpretations

effective for annual periods beginning on or after 1 January 2022, which are presented below.

Amendments to existing standards effective for the current reporting period

The following amendments to existing standards issued by the International Accounting Standards

Board (IASB) and adopted by the EU are effective for the current reporting period:

Amendments to IAS 16 Property, Plant and Equipment

Amendments refer to proceeds before intended use are effective for annual periods beginning on or

after 1 January 2022.

The amendments prohibit deducting from the cost of an item of property, plant and equipment any

proceeds from selling items produced while bringing that asset to the location and condition necessary

for it to be capable of operating in the manner intended by management. Instead, an entity recognises

the proceeds from selling such items, and the cost of producing those items, in proﬁt or loss.

Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets

Amendments refer to the cost of fulﬁlling and are effective for annual periods beginning on or after

1 January 2022.

Amendments specify that the “cost of fulﬁlling” a contract comprises the “costs that relate directly to

the contract”. Costs that directly relate to the contract can either be incremental costs of fulﬁlling that

contract or an allocation of other costs that relate directly to fulﬁlling the contract.

Amendments to IFRS 3 Business Combinations

Amendments are effective for annual periods beginning on or after 1 January 2022 and relate to the

reference to the conceptual framework with amendment to IFRS 3.

These amendments:



update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework;



add to IFRS 3 a requirement that, for transactions and other events within the scope of IAS 37 or

IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the

liabilities it has assumed in a business combination;



add to IFRS 3 an explicit statement that an acquirer does not recognise contingent assets acquired in

a business combination.

Amendments to various standards due to Improvements to IFRSs (the 2018–2020 cycle)

Amendments result from the annual improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41)

primarily with a view to removing inconsistencies and clarifying the wording, which were adopted

by the EU on 28 June 2021. Amendments to IFRS 1, IFRS 9 and IFRS 41 are effective for annual periods

beginning on or after 1 January 2022. Amendments to IFRS 16 relate only to the illustrative example,

so no effective date is stated.

These amendments:



clarify that a subsidiary that applies paragraph D16(a) of IFRS 1 is permitted to measure cumulative

translation differences using the amounts reported by its parent, based on the parent’s date of

transition to IFRSs (IFRS 1);



clarify which fees an entity includes when it applies the “10 per cent” test in paragraph B3.3.6 of

IFRS 9 in assessing whether to derecognise a ﬁnancial liability. An entity includes only fees paid or

received between the entity (the borrower) and the lender, including fees paid or received by either

the entity or the lender on the other’s behalf (IFRS 9);



remove from the example the illustration of the reimbursement of leasehold improvements by the

lessor in order to resolve any potential confusion regarding the treatment of lease incentives that

might arise because of how lease incentives are illustrated in that example (Illustrative Example 13

accompanying IFRS 16); and



remove the requirement in paragraph 22 of IAS 41 for entities to exclude taxation cash ﬂows when

measuring the fair value of a biological asset using a present value technique (IFRS 41).

The impact of amendments to existing standards on the Company’s and the Group’s ﬁnancial statements

The adopted amendments did not have any impact on the consolidated and separate ﬁnancial

statements of Zavarovalnica Triglav.

Adopted standards and amendments to existing standards which will become

effective at a later date, not applied by the Company and the Group in their

ﬁnancial statements

At the date of authorisation of these ﬁnancial statements, the following amendments to existing

standards were issued by the IASB and adopted by the EU but which are not yet effective:

New IFRS 17 Insurance Contracts

Amendments to IFRS 17 Insurance Contracts issued by the IASB on 25 June 2020 defer the date of initial

application of IFRS 17 by two years to annual periods beginning on or after 1 January 2023. Additionally,

amendments introduce simpliﬁcations and clariﬁcations of some requirements in the standard and

provide additional reliefs in the ﬁrst-time application of IFRS 17.

The new standard requires insurance liabilities to be measured at a current fulﬁlment value and

provides a more uniform measurement and presentation approach for all insurance contracts. These

requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance

contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts and related interpretations while applied.

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

240

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

In parallel with the new IFRS 17, IFRS 9 will apply to insurance companies that have opted for the

temporary exemption from the application of said standard. The application of IFRS 17 and IFRS 9 will

have a signiﬁcant impact on the interim and annual consolidated and separate ﬁnancial statements

of Zavarovalnica Triglav for periods beginning on or after 1 January 2023. The assessed impact of the

transition is presented in more detail in sections

5.1

and

5.2

Amendments to IAS 1 Presentation of Financial Statements

Amendments to the standard refer to the disclosure of accounting policies and are effective for annual

periods beginning on or after 1 January 2023.

Amendments require entities to disclose their material accounting policies rather than their signiﬁcant

accounting policies and provide guidance and examples to help preparers in deciding which accounting

policies to disclose in their ﬁnancial statements.

Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Amendments to the standard refer to the deﬁnition of accounting estimates and are effective for

annual periods beginning on or after 1 January 2023. Amendments focus on accounting estimates and

provide guidance on how to distinguish between accounting policies and accounting estimates.

Amendments to IAS 12 Income Taxes

Amendments address deferred tax related to assets and liabilities arising from a single transaction

and are effective for annual periods beginning on or after 1 January 2023. According to amendments,

the initial recognition exemption does not apply to transactions in which both deductible and taxable

temporary differences arise on initial recognition that result in the recognition of equal deferred tax

assets and liabilities.

The impact of new standards and amendments to existing standards that will be effective at a later date

on the Company’s and the Group’s ﬁnancial statements

With the exception of the implementation of IFRS 17 and IFRS 9, it is estimated that the adopted

amendments to the standards will not have a signiﬁcant impact on the consolidated and separate

ﬁnancial statements of Zavarovalnica Triglav.

New standards and amendments to existing standards issued by the IASB but not

yet adopted by the EU

Presently, IFRSs as adopted by the EU do not signiﬁcantly differ from regulations adopted by the

International Accounting Standards Board (IASB) except for the following new standards and

amendments to existing standards.

Amendments to IAS 1 Presentation of Financial Statements

Amendments are effective for annual periods beginning on or after 1 January 2023 and relate to the

classiﬁcation of liabilities as current or non-current.

Amendments provide a more general approach to the classiﬁcation of liabilities under IAS 1 based on the

contractual arrangements in place at the reporting date. Amendments to IAS 1 issued by the IASB on

15 July 2020 defer the effective date by one year to annual periods beginning on or after 1 January 2023.

Amendments to IAS 1 Presentation of Financial Statements

Amendments are effective for annual periods beginning on or after 1 January 2024 and relate to

non-current liabilities with covenants.

The amendments clarify how the conditions that the entity must fulﬁl within twelve months after the

reporting period affect the classiﬁcation of liabilities.

Amendments to IFRS 16 Leases

Amendments refer to the lease liability in a sale and leaseback transaction and are effective for annual

periods beginning on or after 1 January 2024.

The amendments to IFRS 16 require a seller-lessee to subsequently measure lease liabilities arising from

a leaseback in a way that it does not recognise any amount of the gain or loss that relates to the right of

use it retains. The new requirements do not prevent a seller-lessee from recognising in proﬁt or loss any

gain or loss relating to the partial or full termination of a lease.

Amendments to IFRS 14 Regulatory Deferral Accounts

Amendments are effective for annual periods beginning on or after 1 January 2016.

However, the

European Commission has decided not to begin the process of endorsing this interim standard until its

ﬁnal version has been issued.

The objective of the standard is to enable an entity that is a ﬁrst-time adopter of IFRS to continue

to account for regulatory deferral account balances in accordance with its previous GAAP when it

adopts IFRS.

Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint

Ventures

Amendments deal with the sale and contribution of assets between an investor and its associate or

joint venture, and further amendments. The effective date is deferred indeﬁnitely until the research

project on the equity method has been concluded.

The amendments address a conﬂict between the requirements of IAS 28 and IFRS 10 and clarify that in

a transaction involving an associate or joint venture the extent of gain or loss recognition depends on

whether the assets sold or contributed constitute a business.

The impact of new standards and amendments to existing standards not yet adopted by the EU on the

Company’s and the Group’s ﬁnancial statements

The management anticipates that the adoption of these new standards and amendments to existing

standards will have no material impact on the Company’s separate and consolidated ﬁnancial

statements in the period of initial application.

Notes to the ﬁnancial statements

Business Report

Risk Management

Accounting Report

241

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Notes on temporary exemption from applying IFRS 9

In 2022, the Company continued to apply the temporary exemption from the application of IFRS 9. Due

to the adoption of the new standard that addresses insurance contracts, IFRS 17, the standard may be

applied from 1 January 2023. The deferral condition is that the carrying amount of liabilities arising

from the insurance business is at least 90% of total carrying amount of liabilities. The fulﬁlment of the

conditions was veriﬁed as at 31 December 2015. The calculation is shown in the table below. There have

been no changes since 31 December 2015 that would signiﬁcantly impact the fulﬁlment of the conditions.

in EUR

Triglav Group

Zavarovalnica Triglav

31 December 2015

Insurance technical provisions

2,600,442,123

2,053,864,286

Total liabilities

2,789,412,299

2,154,872,319

Ratio of insurance liabilities to total liabilities

93%

95%

The table below presents an analysis of the fair value of ﬁnancial assets at the end of the reporting

period and the corresponding change in fair value during the reporting period. Financial assets are

broken down into assets whose contractual cash ﬂows are solely payments of principal and interest

(SPPI) on the principal amounts outstanding, excluding any ﬁnancial assets held for trading, and all

other ﬁnancial assets.

in EUR

Assets whose contractual cash ﬂows are

solely payments of principal and interest on

the principal amounts outstanding

Other ﬁnancial assets

Triglav Group

Fair value

1 January 2022

31 December 2022

Fair value

1 January 2022

31 December 2022

Debt securities

2,504,048,741

2,178,943,983

42,751,390

37,038,153

Equity securities

360,707,903

265,998,629

Derivatives

20,317

Loans and deposits

74,170,926

99,825,103

Cash and cash equivalents

82,321,630

98,461,452

Total

2,660,541,297

2,377,230,538

403,479,609

303,036,782

in EUR

Assets whose contractual cash ﬂows are

solely payments of principal and interest on

the principal amounts outstanding

Other ﬁnancial assets

Zavarovalnica Triglav

Fair value

1 January 2022

31 December 2022

Fair value

1 January 2022

31 December 2022

Debt securities

1,743,950,017

1,422,119,467

25,504,977

23,833,305

Equity securities

204,009,208

151,148,306

Derivatives

20,317

Loans and deposits

24,470,029

23,321,503

3,278,362

3,264,537

Cash and cash equivalents

13,912,991

23,065,241

Total

1,782,333,038

1,468,506,211

232,812,864

178,246,148

The table below shows the fair value of assets as at 31 December 2022 whose contractual cash ﬂows

are solely payments of principal and interest on the principal amounts outstanding by credit risk

rating grades.

in EUR

Ratings of assets whose cash ﬂows are solely payments of principal and

interest on the principal amounts outstanding

Triglav Group

Unrated

AAA

AA/A

BBB

BB/B

Total

Debt securities

37,101,404

481,771,294

792,619,023

696,480,513

170,971,749

2,178,943,983

Loans and deposits

95,437,149

775,123

3,612,830

99,825,103

Cash and cash equivalents

Total

45,665,576

178,204,129

481,771,294

4,635

792,623,658

29,125,119

726,380,755

23,667,786

198,252,365

98,463,116

2,377,232,202

in EUR

Ratings of assets whose cash ﬂows are solely payments of principal and

interest on the principal amounts outstanding

Zavarovalnica Triglav

Unrated

AAA

AA/A

BBB

BB/B

Total

Debt securities

15,983,926

336,338,881

601,466,910

417,861,002

50,468,748

1,422,119,467

Loans and deposits

23,321,503

Cash and cash equivalents

Total

503,061

39,808,491

336,338,881

4,635

601,471,545

19,146,567

437,007,569

3,410,977

53,879,725

23,065,241

1,468,506,211

The table below shows the fair value and carrying amount of assets whose contractual cash ﬂows are

solely payments of principal and interest on the principal amounts outstanding and for which the

Group determined that their credit risk was not low. The carrying amount is measured in accordance

with IAS 39 prior to any impairment adjustment of assets measured at amortised cost.

in EUR

Assets whose contractual cash ﬂows are solely payments of principal and

interest and do not have a low credit risk

Skupina Triglav

Fair value

Carrying amount

Debt securities

208,073,153

208,047,476

Loans and deposits

99,049,979

100,698,363

Cash and cash equivalents

Total

69,333,362

376,456,494

69,333,362

378,079,201

in EUR

Assets whose contractual cash ﬂows are solely payments of principal and

interest and do not have a low credit risk

Zavarovalnica Triglav

Fair value

Carrying amount

Debt securities

66,452,674

Loans and deposits

23,321,503

23,946,271

Cash and cash equivalents

Total

3,914,039

93,688,216

3,914,039

94,312,984

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

242

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3. Notes to the statement of ﬁnancial position

3.1 Intangible assets

in EUR

Triglav Group

Goodwill

Deferred

acquisition cost

Long-term

deferred items

Licences and

software

Intangible assets

in course of

acquisition

Total

COST

As at 1 January 2021

10,413,312

52,655,972

1,595,588

91,905,492

3,257,581

159,827,946

– transfer in use

2,400,471

-2,400,471

– purchases

14,390,973

2,710,730

17,101,703

– disposals

-1,705,072

– decrease (net value)

422,546

-1,293,306

-870,760

– other changes

2,200,000

– exchange rate difference

26,445

29,139

192

55,776

As at 31 December 2021

10,413,312

53,104,963

302,282

109,221,003

3,568,032

176,609,593

– transfer in use

2,361,862

-2,361,862

– purchases

6,550,771

6,081,763

12,632,534

– disposals

-3,369,436

– decrease (net value)

5,588,379

-143,861

5,444,518

– exchange rate difference

-3,244

-13,845

-288

-17,377

As at 31 December 2022

10,413,312

58,690,098

158,421

114,750,355

7,287,645

191,299,831

ACCUMULATED AMORTISATION

As at 1 January 2021

-58,852,464

– current year amortisation

-10,018,359

– disposals

1,669,635

– other changes

-2,200,000

– exchange rate difference

-23,987

As at 31 December 2021

-69,425,175

– current year amortisation

-12,790,825

– disposals

3,365,322

– exchange rate difference

10,596

As at 31 December 2022

-78,840,082

CARRYING AMOUNT

As at 31 December 2021

10,413,312

53,104,963

302,282

39,795,828

3,568,032

107,184,417

As at 31 December 2022

10,413,312

58,690,098

158,421

35,910,273

7,287,645

112,459,749

Goodwill

Goodwill arises from the merger of Alta Skladi, d.d., to Triglav Skladi, družba

za upravljanje, d.o.o. in 2019.

In verifying the value of goodwill as at 31 December 2022, the recoverable

amount of the cash-generating unit, i.e. Alta Skladi, was assessed. The

recoverable amount was calculated using the discounted net cash ﬂow

method, taking into account estimated net cash ﬂows for 2023–2028 and

a discount rate of 12.85% (2021: 11.99%).

The calculated recoverable amount of goodwill exceeds its carrying amount,

therefore no impairment of goodwill is required.

Other intangible assets

The Group has no intangible assets pledged as collateral for liabilities.

The Group also has no ﬁnancial liabilities related to the purchase of

intangible assets. Intangible assets owned by the Group were not obtained

with state support.

The amortisation rate used for software is 20%, and for other material

rights it ranges between 1% and 20%. Amortisation rates did not change in

2022. The cost of amortisation of intangible assets is shown in the income

statement in various items, as seen from the presentation of the distribution

of costs by natural and functional groups in Section

4.12

As at 31 December 2022, the Group also discloses deferred acquisition costs

under intangible assets. A change in deferred acquisition costs is recognised

as a change in unearned premium as presented in Section

4.1

Gains and losses on disposals of intangible assets and impairment expenses

are disclosed in the income statement under the item “other income” or

“other expenses”.

The Group has no intangible assets that are individually signiﬁcant for the

consolidated ﬁnancial statements.

In 2022, the Group assessed the existence of possible signs of impairment of

other intangible assets. No signs of impairment were identiﬁed.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

243

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Zavarovalnica Triglav

Deferred

acquisition costs

Long-term

deferred items

Licenses and

software

Intangible assets in

course of acquisition

Total

COST

As at 1 January 2021

37,798,855

1,377,305

58,675,200

3,353,370

101,204,730

– transfer in use

1,908,177

-1,908,177

– purchases

13,930,534

1,516,337

15,446,870

– disposal

-365,304

– decrease (net value)

-2,753,006

-1,075,021

-3,828,027

As at 31 December 2021

35,045,849

302,283

74,148,609

2,961,525

112,458,267

– transfer in use

1,434,479

-1,434,479

– purchases

5,901,323

3,210,534

9,111,858

– disposal

-1,855,146

– decrease (net value)

4,450,567

-143,861

4,306,706

As at 31 December 2022

39,496,416

158,422

79,629,265

4,737,580

124,021,683

ACCUMULATED AMORTISATION

As at 1 January 2021

-38,807,148

– amortisation

-6,986,368

– disposal

357,276

As at 31 December 2021

-45,436,240

– amortisation

-10,026,264

– disposal

1,855,146

As at 31 December 2022

-53,607,358

CARRYING AMOUNT

As at 31 December 2021

35,045,849

302,283

28,712,369

2,961,525

67,022,026

As at 31 December 2022

39,496,416

158,422

26,021,907

4,737,580

70,414,326

The Company has no intangible assets pledged as collateral for liabilities.

The Company also has no ﬁnancial liabilities related to the purchase of

intangible assets. Trade payables related to the purchase of intangible assets

as at 31 December 2022 amount to EUR 2,274,244 (31 December 2021:

EUR 8,255,490). Intangible assets owned by the Company were not obtained

with state support.

The amortisation rate used for software is 20%, and for other material rights

it ranges between 1% and 20%. Amortisation rates did not change in 2022.

The cost of amortisation for the year is shown in the income statement in

various items, as seen from the presentation of the distribution of costs by

natural and functional groups in Section

4.12

As at 31 December 2022, the Company also discloses deferred acquisition

costs under intangible assets. A change in deferred acquisition costs is

recognised as a change in unearned premium as presented in Section

4.1

Gains and losses on disposal of intangible assets are disclosed in the income

statement under the item “other income” or “other expenses”.

The Company has no intangible assets that are individually signiﬁcant for

the ﬁnancial statements.

Cost of fully depreciated property, plant and equipment still in use

represents 19.46% of total cost of property, plant and equipment used by the

Company (31 December 2021: 14.46%). In 2022, the Company assessed the

existence of possible signs of impairment of other intangible assets. No signs

of impairment were identiﬁed.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

244

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.2 Property, plant and equipment

in EUR

Triglav Group

Land

Buildings

Equipment

PP&E in course

of acquisition

Total

COST

As at 1 January 2021

11,441,199

129,320,870

67,224,746

2,790,997

210,777,812

– transfer in use

356

1,072,533

878,613

-1,951,502

– purchases

17,810

601,893

3,398,405

1,595,813

5,613,921

– disposals

-950,733

-4,019,548

-477,221

-5,447,502

– transfer to investment property

-1,099,725

– impairment

-50,813

– exchange rate differences

21,261

83,687

25,627

261

130,836

As at 31 December 2021

11,480,627

129,028,524

67,457,031

1,958,349

209,924,531

– transfer in use

546,941

1,110,761

-1,657,702

– purchases

535,297

8,148,282

1,437,590

10,121,169

– disposals

-33,621

-796,202

-7,313,981

-8,143,804

– transfer to investment property

-817,293

– transfer from investment property

810,984

– impairment

-767

-96,867

-97,634

– transfer to non-current assets

-3,082,889

– exchange rate differences

-12,267

-40,727

-12,386

-143

-65,523

As at 31 December 2022

11,434,739

126,183,868

69,292,840

1,738,094

208,649,541

ACCUMULATED DEPRECIATION

As at 1 January 2021

-43,147,239

-54,339,537

-97,486,776

–

depreciation for the current year

-2,490,231

-6,135,989

-8,626,220

– disposals

395,142

4,105,071

4,500,213

– transfer to investment property

334,888

2,634

337,522

– impairment

50,092

– exchange rate differences

-24,243

-19,907

-44,150

As at 31 December 2021

-44,931,683

-56,337,636

-101,269,319

–

depreciation for the current year

-2,538,175

-5,940,073

-8,478,248

– disposals

277,580

7,042,755

7,320,335

– transfer to investment property

356,634

89,129

445,763

– transfer from investment property

-320,507

– impairment

441

95,957

96,398

– transfer to non-current assets

1,531,109

– exchange rate differences

13,538

9,860

23,398

As at 31 December 2022

-45,611,063

-55,040,008

-100,651,071

CARRYING AMOUNT

As at 31 December 2021

11,480,627

84,096,841

11,119,395

1,958,349

108,655,212

As at 31 December 2022

11,434,739

80,572,805

14,252,832

1,738,094

107,998,468

The Group has no property, plant and equipment pledged as collateral for

liabilities. The Group also has no ﬁnancial liabilities related to the purchase

of property, plant and equipment.

The depreciation rates used for buildings range between 1.5% and 5%, the

depreciation rate for computer equipment was 50% and for other equipment

it ranged between 6.7% and 25%. Amortisation rates did not change in 2022.

The cost of depreciation of property, plant and equipment is shown in the

income statement in various items, as seen from the presentation of the

distribution of costs by natural and functional groups in Section

4.12

Gains and losses on disposals of property, plant and equipment and

impairment expenses of these assets are disclosed in the income statement

under the item “other income” or “other expenses”.

In 2022, the Group assessed the existence of possible signs of impairment of

land, buildings and equipment. No signs of impairment were identiﬁed.

The fair value of the Group's property, plant and equipment exceeds their

carrying amount and is presented in more detail in Section

5.3

The fair value of real property was determined based on valuations

performed as at 30 September 2022 by an external certiﬁed real estate

valuer in accordance with the guidelines described in Section

2.5.13

When preparing the ﬁnancial statements as at 31 December 2022, the

management performed a re-assessment and concluded that there were

no changes between the valuation date and the reporting date that would

signiﬁcantly affect the fair value of real property. For the purposes of real

property valuation, the suitability of using all valuation methods provided by

the International Valuation Standards was checked. Considering the results

of the real property market analysis as well as taking into consideration the

purpose of valuation and the characteristics of speciﬁc valued real property,

the following were used in valuation:



the market approach (the comparable transaction method),



the income approach (the income capitalisation approach) and



the land residual method.

In the comparable transaction method, fair value was estimated based on

market data derived from comparable transactions with similar real property.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

245

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

When using the income capitalisation method,

the fair value of Slovenian real property was

estimated using a discount rate ranging between

7.50% and 9.25% for commercial buildings.

Residential buildings were valued using the

comparable sales method due to sufﬁcient

market evidence in local markets. The following

assumptions were taken into account in the

calculation of the capitalisation rate:



the 0.53%risk-free rate of return in real terms,

taking into account the yield on a 10-year

Slovenian government bond of 3.24% and the

annual price growth rate of 2.7%;



the real estate risk premium of 5.0–7.0%;



the capital retention premium of 1.42% (in the

case of an estimated age of ofﬁce property of

70 years).

When using the income capitalisation method,

the fair value of real property abroad was

estimated using a discount rate ranging between

7.8% and 13.4%. The following assumptions

were taken into account in the calculation of the

capitalisation rate:



the risk-free rate of return of 5.6–11.2%,

taking into account the yield on a 10-year

German government bond, the country risk

premium and the current and projected

inﬂation rate for the country in which real

property is located;



the real estate risk premium of 6.0%;



the capital retention premium of 1.67% (in the

case of an estimated age of ofﬁce property of

60 years).

in EUR

Zavarovalnica Triglav

Land

Buildings

Equipment

PP&E in course of

acquisition

Total

COST

As at 1 January 2021

5,857,377

82,130,823

41,492,315

700,529

130,181,047

– transfer in use

356

1,051,365

180,956

-1,232,677

– purchases

17,810

73,634

1,718,145

763,152

2,572,740

– disposal

-1,335

-2,688,127

-2,689,461

As at 31 December 2021

5,875,545

83,254,487

40,703,289

231,004

130,064,326

– transfer in use

381,851

177,896

-559,747

– purchases

51,230

6,260,448

544,688

6,856,366

– disposal

-392,118

-5,639,803

-6,031,921

– transfer from investment property

810,984

As at 31 December 2022

5,875,545

84,106,434

41,501,830

215,946

131,699,755

ACCUMULATED DEPRECIATION

As at 1 January 2021

-28,792,850

-33,612,742

-62,405,592

–

depreciation for the current year

-1,408,848

-3,776,720

-5,185,568

– disposal

362

2,669,782

2,670,145

As at 31 December 2021

-30,201,336

-34,719,680

-64,921,016

–

depreciation for the current year

-1,417,798

-3,472,525

-4,890,323

– disposal

116,625

5,600,473

5,717,098

– transfer from investment property

-320,507

As at 31 December 2022

-31,823,016

-32,591,732

-64,414,748

CARRYING AMOUNT

As at 31 December 2021

5,875,545

53,053,151

5,983,609

231,004

65,143,310

As at 31 December 2022

5,875,545

52,283,418

8,910,098

215,946

67,285,004

The Company has no property, plant and equipment pledged as collateral

for liabilities. The Company also has no ﬁnancial liabilities related to the

purchase of property, plant and equipment. As at 31 December 2022, trade

payables for property, plant and equipment amounted to EUR 2,886,007

(31 December 2021: EUR 1,141,961).

The depreciation rates used for buildings range between 1.5% and 5%, the

depreciation rate for computer equipment was 50% and for other equipment

it ranged between 6.7% and 25%. Amortisation rates did not change in 2022.

The cost of amortisation for the year is shown in the income statement in

various items, as seen from the presentation of the distribution of costs by

natural and functional groups in Section

4.12

Gains and losses on disposals of property, plant and equipment and

impairment expenses of these assets are disclosed in the income statement

under the item “other income” or “other expenses”.

Cost of fully depreciated assets still in use represents 19.95% of total cost of

all assets used (31 December 2021: 19.12%).

In 2022, the Company assessed the existence of possible signs of impairment

of land, buildings and equipment. No signs of impairment were identiﬁed.

The fair value of the Company’s property, plant and equipment exceeds their

carrying amount and is presented in more detail in Section

5.3

The fair value of real property was determined in the same way as for the Group.

Notes to the statement of ﬁnancial position

Business Report

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Accounting Report

246

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.3 Investment property

in EUR

IP in course of

Triglav Group

Land

Buildings

acquisition

Total

COST

As at 1 January 2021

17,834,026

67,500,266

13,521,982

98,856,274

– transfer in use

1,179,054

-1,179,054

– purchases

23,739

1,562,112

1,585,851

– disposals

-352,328

-1,862,808

-2,215,136

–

transfer from property, plant and equipment

1,099,725

– transfer to non-current assets

-2,631,840

-513,428

-3,145,268

– impairment

-2,130

-10,176

-12,306

– exchange rate difference

458

1,733

2,191

As at 31 December 2021

14,848,185

67,418,101

13,905,040

96,171,326

– transfer in use

3,347,280

-3,347,280

– purchases

1,016,944

1,569,684

2,586,628

– disposals

-2,877,976

-1,179,333

-152,144

-4,209,453

–

transfer from property, plant and equipment

817,294

–

transfer to property, plant and equipment

-810,984

– transfer to non-current assets

-4,023,015

– exchange rate difference

-206

As at 31 December 2022

7,946,988

70,609,302

11,975,300

90,531,590

ACCUMULATED DEPRECIATION

As at 1 January 2021

-19,878,474

–

depreciation for the current year

-1,335,886

– disposals

500,169

–

transfer from property, plant and equipment

-337,522

– impairment

-7,966

– exchange rate difference

-670

As at 31 December 2021

-21,060,349

–

depreciation for the current year

-1,430,563

– disposals

379,509

–

transfer from property, plant and equipment

-356,634

–

transfer to property, plant and equipment

320,507

– impairment

-6,617

– exchange rate difference

As at 31 December 2022

-22,154,093

CARRYING AMOUNT

As at 31 December 2021

14,848,185

46,357,752

13,905,040

75,110,977

As at 31 December 2022

7,946,988

48,455,209

11,975,300

68,377,495

The Group leases (operational lease) its investment properties, i.e. individual business premises.

All operating leases can be cancelled and are concluded for an initial term of one to ten years or for

indeﬁnite period. Leases do not include contingent rents (variable lease payments).

All income from investment property relates exclusively to leases or other associated costs and is

disclosed in the income statement under “other income”. Expenses from investment property relate to

amortisation and maintenance costs of investment property and are disclosed in the income statement

under “other expenses”.

The Group has no investment property pledged as collateral for liabilities. The Group also has no

ﬁnancial liabilities related to the purchase of investment property.

The amortisation rates used for investment property range between 1.5% and 5%. Amortisation rates

did not change in 2022. The cost of depreciation of property, plant and equipment is shown in the

income statement in various items, as seen from the presentation of the distribution of costs by natural

and functional groups in Section

4.12

Gains and losses on disposals of investment property and impairment expenses of these assets are

disclosed in the income statement under the item “other income” or “other expenses”.

In 2022, the Group assessed the existence of possible signs of impairment of investment property. No

signs of impairment were identiﬁed.

The fair value of the Group’s investment property exceeds its carrying amount and is presented in more

detail in Section

5.3

The fair value of real property was determined based on valuations performed as at 30 September 2022

by an external certiﬁed real estate valuer in accordance with the guidelines described in Section

2.5.13

When preparing the ﬁnancial statements as at 31 December 2022, the management performed

a re-assessment and concluded that there were no changes between the valuation date and the

reporting date that would signiﬁcantly affect the fair value of real property. For the purposes of

real property valuation, the suitability of using all valuation methods provided by the International

Valuation Standards was checked. Considering the results of the real property market analysis as well

as taking into consideration the purpose of valuation and the characteristics of speciﬁc valued real

property, the following were used in valuation:



the market approach (the comparable transaction method),



the income approach (the income capitalisation approach) and



the land residual method.

In the comparable transaction method, fair value was estimated based on market data derived from

comparable transactions with similar real property.

When using the income capitalisation method, the fair value of Slovenian real property was estimated

using a discount rate ranging between 7.50% and 9.25% for commercial buildings and between 3.75%

and 5.75% for residential buildings. Residential buildings were valued using the comparable sales

method due to sufﬁcient market evidence in local markets. The following assumptions were taken into

account in the calculation of the capitalisation rate:



the 0.53% risk-free rate of return in real terms, taking into account the yield on a 10-year Slovenian

government bond of 3.24% and the annual price growth rate of 2.7%;



the real estate risk premium of 5.0–7.0%;



the capital retention premium of 1.42% (in the case of an estimated age of ofﬁce property of 70 years).

When using the income capitalisation method, the fair value of real property abroad was estimated

using a discount rate ranging between 7.80% and 13.40%. The following assumptions were taken into

account in the calculation of the capitalisation rate:



the risk-free rate of return of 5.6–11.20%, taking into account the yield on a 10-year German

government bond, the country risk premium and the current and projected inﬂation rate for the

country in which real property is located;



the real estate risk premium of 6.0%;



the capital retention premium of 1.67% (in the case of an estimated age of ofﬁce property of 60 years).

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

247

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

IP in course of

Zavarovalnica Triglav

Land

Buildings

acquisition

Total

COST

As at 1 January 2021

3,549,193

40,531,909

10,811,077

54,892,179

– transfer in use

619,900

-619,900

– purchases

21,950

619,741

641,690

– disposal

-19,728

-485,625

-505,353

As at 31 December 2021

3,529,464

40,688,133

10,810,918

55,028,516

– purchases

33,675

1,118,817

1,152,492

– disposal

-16,237

-202,020

-218,257

– transfer to property, plant and equipment

-810,984

As at 31 December 2022

3,513,227

39,708,804

11,929,735

55,151,767

ACCUMULATED DEPRECIATION

As at 1 January 2021

-10,440,902

– depreciation

-967,250

– disposal

219,690

As at 31 December 2021

-11,188,462

– depreciation

-966,800

– disposal

60,161

– transfer to property, plant and equipment

320,507

As at 31 December 2022

-11,774,594

CARRYING AMOUNT

As at 31 December 2021

3,529,464

29,499,671

10,810,918

43,840,054

As at 31 December 2022

3,513,227

27,934,210

11,929,735

43,377,173

Zavarovalnica Triglav leases (operational lease) its investment properties, i.e. individual business

premises. All operating leases can be cancelled and are concluded for an initial term of one to ten years

or for indeﬁnite period. Leases do not include contingent rents (variable lease payments).

All income from investment property relates exclusively to leases or other associated costs and is

disclosed in the income statement under “other income”. Expenses from investment property relate to

amortisation and maintenance costs of investment property and are disclosed in the income statement

under “other expenses”.

The Company has no investment property pledged as collateral for liabilities. The Company also has no

ﬁnancial liabilities related to the purchase of investment property. Investment property owned by the

Company was not obtained with state support.

The amortisation rates used for investment property range between 1.5% and 5%. Amortisation rates

did not change in 2022. The cost of depreciation of property, plant and equipment is shown in the

income statement in various items, as seen from the presentation of the distribution of costs by natural

and functional groups in Section

4.12

Gains and losses on disposal of investment property are disclosed in the income statement under the

item “other income” or “other expenses”.

In 2022, the Company assessed the existence of possible signs of impairment of investment property.

No signs of impairment were identiﬁed.

The fair value of the Comapny’s investment property exceeds its carrying amount and is presented in

more detail in Section

5.3

The fair value of real property was determined in the same way as for the Group.

The following income is recognised in the income statement as lease income:

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Lease income

5,132,926

4,954,878

6,058,930

5,596,224

Sublease income

96,441

94,255

57,360

56,692

There were no signiﬁcant modiﬁcations or terminations of lease contracts in 2022. Based on the current

contractual provisions in lease contracts, an analysis of expected future cash inﬂows from leases is

presented below. Expected cash inﬂows are calculated based on the term of valid lease contracts. For

contracts concluded without a term, the term was limited to ﬁve years at initial recognition.

in EUR

Triglav Group

Zavarovalnica Triglav

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Year 1

6,296,386

6,598,071

4,163,420

4,194,027

Year 2

5,079,823

6,065,580

3,640,923

3,885,191

Year 3

3,527,026

2,724,405

3,174,242

1,246,545

Year 4

3,199,416

1,182,994

2,893,336

818,800

Year 5

432,008

1,085,003

217,600

768,063

From year 5

320,280

730,220

284,142

473,802

TOTAL

18,854,939

18,386,272

14,373,663

11,386,428

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

248

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.4 Right of use assets

in EUR

Land and

Triglav Group

buildings

Vechicles

Other

Total

Carrying amount as at 1 January 2021

8,116,932

1,613,146

91,133

9,821,211

– addition

1,211,537

1,365,493

38,192

2,615,222

– accumulated depreciation

-2,792,093

-752,043

-39,735

-3,583,871

– modiﬁcation

2,036,818

-6,209

-4,918

2,025,691

– exchange rate difference

40,350

14,518

-12

54,856

Carrying amount as at 31 December 2021

8,613,544

2,234,905

84,660

10,933,109

– addition

477,392

953,740

1,985

1,433,117

– accumulated depreciation

-2,905,105

-884,393

-39,941

-3,829,439

– modiﬁcation

2,093,237

-246,226

-9,961

1,837,050

– exchange rate difference

-4,942

-1,235

-34

-6,211

Carrying amount as at 31 December 2022

8,274,126

2,056,791

36,709

10,367,625

in EUR

Land and

Zavarovalnica Triglav

buildings

Vechicles

Other

Total

Carrying amount as at 1 January 2021

2,366,504

1,200,090

21,322

3,587,916

– addition

463,436

691,747

38,193

1,193,375

– accumulated depreciation

-667,267

-506,765

-12,560

-1,186,592

– modiﬁcation

1,022,250

-68,651

953,599

Carrying amount as at 31 December 2021

3,184,921

1,316,422

46,954

4,548,298

– addition

45,082

563,475

1,985

610,543

– accumulated depreciation

-685,848

-515,855

-12,229

-1,213,932

– modiﬁcation

-3,674

-509

-4,183

Carrying amount as at 31 December 2022

2,540,481

1,363,533

36,710

3,940,725

The Group and the Company lease business premises, vehicles and other equipment used in their

operations. Leases for business premises are usually concluded for an indeﬁnite term, and leases for

vehicles and other equipment for 1 to 5 years.

The Group and the Company also entered into some leases with lease terms of 12 months or less and

leases of low-value equipment. Permitted exceptions to recognition apply to these leases.

To calculate the net present value of future leases, discount rates were used that were determined

at the level of the interest rate for risk-free government bonds, increased by the credit spread of an

individual Group member. When valuing assets and liabilities from contracts concluded for an indeﬁnite

term, there were no changes in the estimated term of contracts in 2022.

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

DEPRECIATION OF RIGHT OF USE ASSETS

3,829,439

3,583,871

1,213,932

1,186,592

Depreciation of rights to use land and buildings

2,905,105

2,792,093

685,848

667,267

Depreciation of right to use vehicles

884,393

752,043

515,855

506,765

Depreciation of rights to use other assets

39,941

39,735

12,229

12,560

INTEREST EXPENSE ON LEASE LIABILITIES

497,677

489,303

79,806

65,714

OTHER LEASE EXPENSES

689,665

572,507

475,811

430,026

Short – term lease expenses

125,836

84,236

49,092

1,678

Low – value lease expenses

563,829

488,271

426,719

428,348

Payment for right of use assets

4,227,582

3,945,755

1,245,256

1,230,260

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

249

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.5 Investments in subsidiaries

There were no business combinations in the Triglav Group in 2022. All other changes in the Group in

2022 are described in Section

2.1.4

In preparing the ﬁnancial statements for 2022, it was assessed whether there were any changes in the

assumptions related to the conditions applicable to the control of individual companies in any of the

Group companies. There were no such changes.

Signs of impairment of investments in subsidiaries were assessed in 2022. Where signs were identiﬁed,

the recoverable amount of the investment was calculated and impairment was made for the difference

to its carrying amount.

Impairment of investments in subsidiaries was recognised in the Company’s separate ﬁnancial

statements under expenses from investments in associates:



in the amount of EUR 2,894,788, which relates to the impairment of investments in Triglav

Pokojninska družba, d.d., Ljubljana



in the amount of EUR 1,025,000, which relates to the impairment of investments in Triglav Penzisko

društvo, a.d., Skopje.

The following assumptions were taken into account in determining the recoverable amount of

investment in the subsidiary Triglav Pokojninska družba, d.d.:



expected cash ﬂows based on the companies’ business plans for 2023–2027;



the discount rate of 12.46–14.46% represented by cost of equity;



6.5% illiquidity discount;



application of the assumption of the payment of excess capital above the legally required limit.

The addition method was used in determining the recoverable amount of investment in the subsidiary

Triglav Penzisko društvo, a.d., Skopje.

Zavarovalnica Triglav’s interests in subsidiaries

EQUITY STAKE

SHARE OF VOTING RIGHTS

BOOK VALUE

(in %)

(in EUR)

TAX

RATE

No.

COMPANY

ADDRESS

(in %)

ACTIVITY

2022

2021

2022

2021

2022

2021

Pozavarovalnica Triglav Re d.d.

Miklošičeva cesta 19, Ljubljana, Slovenia

Reinsurance

100.00

9,750,752

Triglav, Zdravstvena zavarovalnica d.d.

Pristaniška ulica 10, Koper, Slovenia

Insurance

100.00

3,735,886

Triglav INT d.o.o.

Dunajska cesta 22, Ljubljana, Slovenia

Holding company

100.00

89,770,730

79,770,730

Triglav, pokojninska družba d.d.

Dunajska cesta 22, Ljubljana, Slovenia

Fund management

100.00

52,070,000

9,965,340

Triglav, Upravljanje nepremičnin d.o.o.

Dunajska cesta 22, Ljubljana, Slovenia

Real estate management

100.00

24,493,300

Triglav Skladi d.o.o.

Dunajska cesta 20, Ljubljana, Slovenia

Fund management

100.00

2,076,723

Triglav Avtoservis d.o.o.

Verovškova 60b, Ljubljana, Slovenia

Maintenance and repair of motor vehicle

100.00

194,216

Triglav Svetovanje d.o.o.

Ljubljanska cesta 86, Domžale, Slovenia

Insurance agency

100.00

279,736

Zavod Vse bo v redu

Miklošičeva cesta 19, Ljubljana, Slovenia

Insitute for corporate social responsibility

100.00

100,000

Triglav penzisko društvo a.d., Skopje

Bulevar 8-mi Septemvri 18, Skopje, North Macedonia

Fund management

100.00

2,889,000

1,558,000

TOTAL

185,360,343

131,924,683

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

250

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.6 Investments in associates and joint ventures

The effect of re-measuring the fair value of investments in associates and joint ventures in the amount



the discount rate of 10.91–14.09% based on weighted average cost of capital (WACC) and

of EUR 257,874 was recognised in the Company’s separate ﬁnancial statements. The revaluation effect



the expected long-term growth rate of 2.0–2.5%.

was recognised in other comprehensive income as an increase in fair value reserves.

The effects of valuation using the equity method are disclosed under the items income and expenses

The following assumptions were taken into account in determining the fair value of investments in

from investments in the consolidated income statement. A summary of accounting information for the

associates and joint ventures:

associates and the Group’s interests in these companies are shown in the tables below.

103



expected cash ﬂows based on the companies’ business plans for 2023–2035,

COMPANY

ADDRESS

TAX RATE (in%)

ACTIVITY

Nama d.d.

Tomšičeva 1, Ljubljana, Slovenia

Retail trade

Triglavko d.o.o.

Ulica XXX. divizije 23, Nova Gorica, Slovenia

Insurance agency

TRIGAL, upravljanje naložb in svetovanje d.o.o.

Dunajska cesta 22, Ljubljana, Slovenia

Management of ﬁnancial funds

Društvo za upravljanje EDPF a.d., Banja Luka

Kralja Petra I Karađorđevića 109/III Banja Luka, Bosnia and Herzegovina

Fund management

Diagnostični center Bled d.o.o.

Pod skalo 4, Bled, Slovenia

Health

Alifenet d.o.o.

Dunajska cesta 22, Ljubljana, Slovenia

Fund management

Triglav Group

Zavarovalnica Triglav

SHARE IN CAPITAL

VOTING RIGHTS

VALUE OF INVESTMENT

SHARE IN CAPITAL

VOTING RIGHTS

VALUE OF INVESTMENT

(in %)

(in EUR)

(in %)

(in EUR)

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Nama, d.d.

39.15

4,496,424

4,315,813

39.07

10,098,002

9,091,928

Triglavko, d.o.o.

38.47

18,561

18,125

38.47

38,499

TRIGAL, upravljanje naložb in svetovanje, d.o.o.

49.90

10,925,240

10,704,506

49.90

10,133,000

10,016,000

Društvo za upravljanje EDPF, a.d.

34.00

440,648

439,970

0.00

Diagnostični center Bled, d.o.o.

50.00

21,856,110

20,479,730

50.00

21,609,167

22,474,368

Alifenet, d.o.o.

23.58

73,202

23.58

73,202

TOTAL

37,810,184

36,031,346

41,951,871

41,693,997

ASSETS

LIABILITIES

EQUITY

REVENUES

PROFIT/LOSS

COMPANY

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Nama, d.d. *

13,321,960

13,751,455

2,113,715

2,739,598

11,208,246

11,011,857

11,336,442

11,002,629

432,555

229,928

Triglavko, d.o.o.

144,424

163,574

60,986

81,270

83,438

82,304

345,210

373,638

1,133

2,076

TRIGAL, upravljanje naložb in svetovanje, d.o.o.

23,607,734

22,463,968

1,274,288

137,388

22,333,446

22,326,580

1,385,607

1,286,945

442,652

315,521

Društvo za upravljanje EDPF, a.d.

1,308,881

1,390,985

29,895

52,388

1,278,986

1,338,597

337,902

319,378

22,849

26,127

Diagnostični center Bled, d.o.o.*

46,338,747

44,917,007

17,455,813

18,908,119

28,882,934

26,008,888

29,450,654

25,785,214

2,752,760

1,690,544

* For Nama, d.d. and Diagnostični center Bled, d.o.o., the data from the consolidated ﬁnancial statements of these companies are shown.

103

Data for 2022 are unaudited. Data for 2021 are adjusted if the revised data were different from those published in the 2021 Annual Report.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

251

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Presented below are the condensed balance sheet and comprehensive income for material investments in associates.

Diagnostični center Bled d.o.o.

NAMA d.d.

TRIGAL d.o.o.

CONDENSED BALANCE SHEET

31 December 2022

31 December 2021

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Current assets

9,019,587

7,424,883

6,556,745

6,513,339

4,608,767

4,728,599

Current liabilities

6,718,522

5,501,977

1,392,041

2,057,697

283,850

96,689

Net current assets/liabilities

2,301,065

1,922,906

5,164,704

4,455,642

4,324,917

4,631,910

Non-current assets

37,319,160

37,492,125

6,765,216

7,238,116

18,998,967

17,735,369

Non-current liabilities

10,737,292

13,406,142

721,674

681,901

990,438

40,699

Net non-current assets/liabilities

26,581,868

24,085,983

6,043,542

6,556,215

18,008,529

17,694,670

Net assets

28,882,933

26,008,889

11,208,246

11,011,857

22,333,446

22,326,580

Diagnostični center Bled d.o.o.

NAMA d.d.

TRIGAL d.o.o.

CONDENSED COMPREHENSIVE INCOME

2022

2021

2022

2021

2022

2021

Net proﬁt or loss for the year

2,752,760

1,690,544

432,555

229,928

442,653

315,521

Other comprehensive income

-74,031

98,295

-164

Total comprehensive income

2,752,760

1,690,544

358,523

328,224

442,653

315,357

Dividends from associates for the year

63,345

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

252

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.7 Financial investments

104

in EUR

Carrying value

Fair value

Triglav Group

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Held to maturity

456,469,434

157,560,733

437,358,263

191,798,392

At fair value through proﬁt and loss

199,317,957

544,425,798

199,317,957

544,425,798

– held for trading

266,015

– classiﬁed at acquisition

199,317,957

544,159,783

199,317,957

544,159,783

Available for sale

1,810,796,092

2,137,609,082

1,810,620,481

2,137,609,082

Loans and deposits

126,526,363

98,104,537

126,201,572

99,906,383

TOTAL

2,593,109,846

2,937,700,150

2,573,498,273

2,973,739,655

Types of investments of the Triglav Group as at 31 December 2022

FVTPL –

Designated

Held for

upon

HTM

trading

acquisition

AFS

Debt and other

ﬁxed-return securities

456,469,434

135,836,743

1,638,019,344

L&R

5,982,437

in EUR

TOTAL

2,236,307,958

234,776,667

Investments in shares,

other ﬂoating-rate

securities and fund

coupons

63,480,799

171,295,868

Financial derivatives

Loans and deposits

415

1,480,880

106,498,949

107,980,244

– deposits with banks

96,853,602

– loans given

4,645,899

– other ﬁnancial

investments

415

1,480,880

4,999,448

6,480,743

Financial investments of

reinsurance companies in

reinsurance contracts

14,044,977

TOTAL

456,469,434

199,317,957

1,810,796,092

126,526,363

2,593,109,846

Types of investments of the Triglav Group as at 31 December 2021

FVTPL –

Designated

Held for

upon

HTM

trading

acquisition

AFS

Debt and other ﬁxed-

return securities

157,560,733

431,465,194

1,917,552,252

L&R

5,991,639

in EUR

TOTAL

2,512,569,818

330,960,661

Investments in shares,

other ﬂoating-rate

securities and fund

coupons

112,613,404

218,347,257

Financial derivatives

20,317

Loans and deposits

326,883

1,709,573

78,772,538

80,808,994

– deposits with banks

70,472,826

– loans given

4,525,185

– other ﬁnancial

investments

326,883

1,709,573

3,774,527

5,810,983

Financial investments of

reinsurance companies in

reinsurance contracts

13,340,360

TOTAL

157,560,733

20,317

544,405,481

2,137,609,082

98,104,537

2,937,700,150

104

For ease of presentation, abbreviations of individual categories of ﬁnancial assets are used in the disclosures:



HTM – held-to-maturity ﬁnancial assets



FVTPL – ﬁnancial assets measured at fair value through proﬁt or loss



AFS – available-for-sale ﬁnancial assets



L&R – loans and receivables

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

253

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Movement of investments of Triglav Group

in EUR

HTM

FVTPL

AFS

L&R

TOTAL

As at 1 January 2021

162,824,686

524,670,724

2,101,914,068

97,971,079

2,887,380,557

Purchases

303,082,731

828,612,089

61,488,798

1,193,183,618

Disposals

-155,425

-230,259,601

-500,165,301

-3,401,132

-733,981,459

Maturities

-12,394,263

-55,550,289

-273,380,879

-60,153,244

-401,478,675

Amount removed from other

comprehensive income at disposal

-20,990,576

260,453

-20,730,123

Valuation trough proﬁt and loss

-4,896,181

Valuation through other

comprehensive income

-17,636,470

Premiums and discounts

4,779,663

-7,387,835

473

-2,607,699

Interest income

2,487,611

6,407,128

25,210,816

1,313,955

35,419,510

Exchange rate difference

18,461

971,284

1,433,172

624,155

3,047,072

As at 31 December 2021

157,560,733

544,425,798

2,137,609,082

98,104,537

2,937,700,150

Purchases

311,747,316

210,110,134

613,393,693

93,565,989

1,228,817,132

Disposals

-463,473,605

-517,478,479

-23,003,572

-1,003,955,656

Maturities

-23,299,892

-47,633,690

-159,821,692

-43,612,147

-274,367,421

Amount removed from other

comprehensive income at disposal

-47,540,864

Valuation trough proﬁt and loss

2,000

-48,547,547

-8,616,734

-57,162,268

Valuation through other

comprehensive income

-215,359,280

Impairment

-8,733,949

162,973

-8,570,976

Premiums and discounts

5,449,360

-5,221,220

386

228,526

Interest income

5,018,705

3,560,155

22,660,342

1,361,722

32,600,924

Exchange rate difference

-8,788

876,712

-94,807

-53,538

719,579

As at 31 December 2022

456,469,434

199,317,957

1,810,796,092

126,526,363

2,593,109,846

As 31 December 2022, the Group’s portfolio included neither received securities as collateral for loans

given, nor any securities pledged as collateral for its liabilities. The proportion of the Group’s ﬁnancial

investments classiﬁed as subordinated instruments by the issuer was 2.0% as at the reporting date

(31 December 2021: 2.22%).

in EUR

Carrying value

Fair value

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Loans and deposits

31,856,441

32,521,523

31,191,711

32,135,431

Held to maturity

227,656,974

140,946,233

226,836,297

173,901,172

Available for sale

1,278,747,957

1,588,390,263

1,278,747,957

1,588,390,263

At fair value through proﬁt and loss:

86,926,499

206,821,960

86,926,499

206,821,960

– designated

86,926,499

206,801,643

86,926,499

206,801,643

– held for trading

20,317

TOTAL

1,625,187,871

1,968,679,979

1,623,702,464

2,001,248,826

Types of investments of Zavarovalnica Triglav as at 31 December 2022

in EUR

FVTPL -

Designated

upon

HTM

acquisition

AFS

L&R

TOTAL

Debt and other ﬁxed-return

securities

227,656,974

68,678,600

1,144,495,399

5,982,438

1,446,813,411

Investments in shares,

other ﬂoating-rate securities and

fund coupons

18,247,899

132,900,407

151,148,306

Financial derivatives

Loans and deposits:

1,352,151

25,874,003

27,226,154

– deposits with banks and

certiﬁcates of deposits

19,514,700

– loans given

4,446,917

– other ﬁnancial investments

1,352,151

1,912,386

3,264,537

TOTAL

227,656,974

86,926,499

1,278,747,957

31,856,441

1,625,187,871

Types of investments of Zavarovalnica Triglav as at 31 December 2021

in EUR

FVTPL -

Designated

upon

HTM

acquisition

AFS

L&R

TOTAL

Debt and other ﬁxed-return

securities

140,946,233

175,170,224

1,414,431,597

5,991,639

1,736,539,694

Investments in shares,

other ﬂoating-rate securities and

fund coupons

31,631,419

172,377,789

204,009,208

Financial derivatives

20,317

Loans and deposits:

1,580,876

26,529,884

28,110,760

– deposits with banks and

certiﬁcates of deposits

19,676,707

– loans given

5,155,690

– other ﬁnancial investments

1,580,876

1,697,486

3,278,362

TOTAL

140,946,233

206,821,960

1,588,390,263

32,521,523

1,968,679,979

Notes to the statement of ﬁnancial position

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Risk Management

Accounting Report

254

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Movement of investments of Zavarovalnica Triglav

in EUR

HTM

FVTPL

AFS

L&R

TOTAL

As at 1 January 2021

143,908,512

207,726,347

1,595,002,429

36,951,085

1,983,588,373

Purchases

184,307,139

701,453,620

361,588

886,122,347

Maturities

-9,654,672

-28,614,834

-223,081,727

-5,266,107

-266,617,340

Disposal

-154,898,078

-458,906,853

-415,014

-614,219,945

Amount removed from other

comprehensive income at disposal

-19,976,488

Valuation trough proﬁt and loss

-3,191,308

Valuation through other

comprehensive income

-16,669,933

Premiums and discounts

4,779,662

-6,861,573

922

-2,080,989

Interest income

1,912,731

1,602,748

17,423,471

796,312

21,735,262

Exchange rate difference

-110,054

7,317

92,737

-9,999

As at 31 December 2021

140,946,233

206,821,960

1,588,390,263

32,521,523

1,968,679,979

Purchases

98,905,203

129,497,468

450,431,295

5,825,801

684,659,767

Maturities

-19,746,242

-10,566,989

-103,266,309

-6,844,346

-140,423,886

Disposal

-219,420,098

-443,429,715

-184,942

-663,034,755

Amount removed from other

comprehensive income at disposal

-45,216,837

Valuation trough proﬁt and loss

2,000

-20,507,966

-20,505,953

Valuation through other

comprehensive income

-171,878,513

Impairments

-6,433,441

Premiums and discounts

5,449,192

-4,587,203

517

862,506

Interest income

2,100,588

1,178,755

14,734,118

616,342

18,629,803

Exchange rate difference

-76,631

4,299

-78,467

-150,799

As at 31 December 2022

227,656,974

86,926,499

1,278,747,957

31,856,441

1,625,187,871

As 31 December 2022, the Company’s portfolio included neither received securities as collateral for

loans given, nor any securities pledged as collateral for its liabilities. The proportion of the Company’s

ﬁnancial investments classiﬁed as subordinated instruments by the issuer was 2.92% as at the reporting

date (31 December 2021: 2.96%).

The signs of impairment of ﬁnancial investments were tested as at 31 December 2022, where with

respect to equity securities a signiﬁcant decrease in the fair value of the security (a 20% decrease in fair

value below cost) or a long-term decrease in its fair value (a decrease in value over a 9-month period)

was taken into account as objective evidence of impairment. For investments in debt instruments,

objective evidence of impairment is essential (default due to inability to pay, signiﬁcant deterioration of

the issuer’s credit rating).

Signs of impairment of ﬁnancial investments were identiﬁed in several ﬁnancial instruments. With

regard thereto, the Group recorded EUR 9,034,736 in expenses and Zavarovalnica EUR 6,433,441 in

expenses in 2022, with Russian bonds accounting for a signiﬁcant portion thereof. These expenses were

recognised in proﬁt or loss under the item “impairment of investments”.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

255

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.8 Unit-linked insurance assets

All unit-linked insurance assets are classiﬁed in the group of ﬁnancial assets measured at fair value through proﬁt or loss. Their carrying amounts are equal to their fair values.

Unit-linked ﬁnancial investments are presented below according to ﬁnancial asset type.

Types of investments of the Triglav Group as at 31 December 2022

in EUR

HTM

FVTPL

AFS

L&R

TOTAL

Debt and other ﬁxed-return

securities

19,537,715

Investments in shares,

other ﬂoating-rate securities and

fund coupons

546,964,429

Financial derivatives

719,558

Loans and deposits

4,644,819

– deposits with banks and

certiﬁcates of deposits

– loans given

4,644,819

– other ﬁnancial investments

TOTAL

567,221,702

4,644,819

571,866,521

Types of investments of the Triglav Group as at 31 December 2021

in EUR

HTM

FVTPL

AFS

L&R

TOTAL

Debt and other ﬁxed-return

securities

25,350,414

Investments in shares,

other ﬂoating-rate securities and

fund coupons

594,267,074

Financial derivatives

Loans and deposits

– deposits with banks and

certiﬁcates of deposits

– loans given

– other ﬁnancial investments

TOTAL

619,617,488

Types of investments of Zavarovalnica Triglav as at 31 December 2022

in EUR

HTM

FVTPL

AFS

L&R

TOTAL

Debt and other ﬁxed-return

securities

5,796,534

Investments in shares,

other ﬂoating-rate securities and

fund coupons

484,822,314

Financial derivatives

Loans and deposits

– deposits with banks and

certiﬁcates of deposits

– loans given

– other ﬁnancial investments

TOTAL

490,618,848

Types of investments of Zavarovalnica Triglav as at 31 December 2021

in EUR

HTM

FVTPL

AFS

L&R

TOTAL

Debt and other ﬁxed-return

securities

9,819,593

Investments in shares,

other ﬂoating-rate securities and

fund coupons

529,598,379

Financial derivatives

Loans and deposits

– deposits with banks and

certiﬁcates of deposits

– loans given

– other ﬁnancial investments

TOTAL

539,417,972

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

256

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Movement of unit-linked insurance assets

in EUR

Triglav Group

Zavarovalnica Triglav

As at 1 January 2021

501,808,980

442,292,488

Purchases

164,719,485

130,148,467

Disposals

-126,792,780

-107,958,832

Maturities

-1,679,786

-304,161

Amount removed from other comprehensive income at disposal

Proﬁt/loss on disposal

Valuation trough proﬁt and loss

78,491,784

73,893,062

Valuation through other comprehensive income

Impairments

Premium and discounts

Interest income

343,564

86,419

Transfer between funds

Exchange rate difference

2,726,241

1,260,529

As at 31 December 2021

619,617,488

539,417,972

Purchases

122,498,450

95,793,661

Disposals

-68,610,626

-57,233,134

Maturities

-8,494,018

-4,551,123

Amount removed from other comprehensive income at disposal

-27,600

Proﬁt/loss on disposal

Valuation trough proﬁt and loss

-95,800,702

-84,077,545

Valuation through other comprehensive income

-262

Impairments

Premium and discounts

Interest income

337,022

103,243

Transfer between funds

Exchange rate difference

2,346,769

1,165,774

As at 31 December 2022

571,866,521

490,618,848

Unit-linked insurance assets are presented below according to ﬁnancial asset type.

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Equity securities

546,964,429

594,267,074

484,822,314

529,598,379

Debt securities

19,537,715

25,350,414

5,796,534

9,819,593

Derivatives

719,558

Loans given

4,644,819

Cash of the KSNT fund

9,078,017

2,685,911

5,063,955

717,080

Total unit-linked insurance assets

580,944,538

622,303,399

495,682,803

540,135,052

Insurance technical provisions for

unit-linked life insurance assets

580,944,538

622,303,399

495,682,803

540,135,052

Both the Triglav Group and Zavarovalnica Triglav disclose the cash of the KSNT fund in the statement of

ﬁnancial position under the item “cash and cash equivalents”.

3.9 Reinsurers' share of technical provisions

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

NON-LIFE INSURANCE

Reinsurers’ share of unearned premiums

57,746,261

53,115,634

49,203,455

41,581,360

Reinsurers’ share of claims

143,136,654

115,899,852

130,898,522

94,405,037

Reinsurers' share of technical provisions for

bonuses and discounts

44,687

34,916

Total non-life insurance

200,927,602

169,050,402

180,101,977

135,986,397

LIFE INSURANCE

Reinsurers’ share of unearned premiums

1,581

1,903

499

728

Reinsurers’ share of claims

108,695

155,829

40,464

90,832

Reinsurers' share of other mathematical provisions

8,761,139

5,631,756

Total life insurance

8,871,415

5,789,488

40,963

91,560

TOTAL ASSETS FROM REINSURANCE CONTRACTS

209,799,017

174,839,890

180,142,940

136,077,958

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

257

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.10 Receivables

Triglav Group

in EUR

NOT DUE

OVERDUE UP TO 180 DAYS

OVERDUE OVER 180 DAYS

TOTAL

NET VALUE

31 December 2022

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Receivables from direct insurance operations

114,595,560

-51,531

114,544,029

28,555,048

-2,435,505

26,119,543

44,515,263

-39,476,723

5,038,540

145,702,112

Receivables from insurers

93,936,610

-46,233

93,890,377

27,166,268

-2,373,738

24,792,530

33,546,548

-32,158,672

1,387,876

120,070,783

Receivables from insurance brokers

456,947

287,927

-43,161

244,766

484,901

-475,419

9,482

711,195

Other receivables from direct insurance operations

20,202,003

-5,298

20,196,705

1,100,853

-18,606

1,082,247

10,483,814

-6,842,632

3,641,182

24,920,134

Receivables from co-insurance and reinsurance operations

59,656,918

14,366,155

7,348,555

-110,452

7,238,103

81,261,176

Premium receivable from co-insurance

1,212,045

1,524,254

984,557

-6,114

978,443

3,714,742

Premium receivable from reinsurance

44,972,983

10,289,309

4,641,077

-104,338

4,536,739

59,799,031

Receivables from co-insurers ’ share in claims

251,353

25,028

5,790

282,171

Receivables from reinsurers ’ share in claims

12,587,901

2,527,564

1,715,855

16,831,320

Other receivables from co-insurance and reinsurance operation

632,636

1,276

633,912

Receivables for income tax refund

6,704,693

Other receivables

28,442,433

-219

28,442,214

6,414,424

-1,015,893

5,398,531

60,803,784

-59,171,864

1,631,920

35,472,665

Other short-term receivables from insurance operations*

6,876,275

3,695,319

-977,417

2,717,902

56,422,067

-55,327,089

1,094,978

10,689,155

Short-term receivables from ﬁnancing

9,299,050

43,627

-6,575

37,052

401,647

-398,117

3,530

9,339,632

Other short-term receivables

11,599,045

-219

11,598,826

1,828,201

-31,901

1,796,300

3,980,070

-3,446,658

533,412

13,928,538

Long-term receivables

668,063

847,277

1,515,340

TOTAL

209,399,604

-51,750

209,347,854

49,335,627

-3,451,398

45,884,229

112,667,602

-98,759,039

13,908,563

269,140,646

* Subrogated receivables are included in other short term receivables from insurance operations.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

258

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

NOT DUE

OVERDUE UP TO 180 DAYS

OVERDUE OVER 180 DAYS

TOTAL

NET VALUE

31 December 2021

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Receivables from direct insurance operations

91,820,356

-114,585

91,705,771

22,286,167

-2,545,490

19,740,677

46,587,473

-41,178,714

5,408,759

116,855,207

Receivables from insurers

85,627,779

-109,007

85,518,772

20,961,728

-2,412,857

18,548,871

35,233,205

-33,865,076

1,368,129

105,435,772

Receivables from insurance brokers

483,018

284,708

-78,483

206,225

407,273

-398,445

8,828

698,071

Other receivables from direct insurance operations

5,709,559

-5,578

5,703,981

1,039,731

-54,150

985,581

10,946,995

-6,915,193

4,031,802

10,721,364

Receivables from co-insurance and reinsurance operations

50,828,032

11,928,250

4,546,183

-101,533

4,444,650

67,200,932

Premium receivable from co-insurance

2,686,589

815,126

516,108

-6,107

510,001

4,011,716

Premium receivable from reinsurance

36,929,384

9,645,377

2,981,035

-95,426

2,885,609

49,460,370

Receivables from co-insurers ’ share in claims

345,342

156,693

2,003

504,038

Receivables from reinsurers ’ share in claims

10,412,747

1,311,054

1,043,666

12,767,467

Other receivables from co-insurance and reinsurance operation

453,970

3,371

457,341

Receivables for income tax refund

4,127,384

Other receivables

18,726,280

-570,974

18,155,306

5,201,870

-980,917

4,220,953

64,283,690

-62,466,563

1,817,127

24,193,386

Other short-term receivables from insurance operations*

4,437,276

-25

4,437,251

3,310,488

-935,726

2,374,762

60,404,439

-59,315,389

1,089,050

7,901,063

Short-term receivables from ﬁnancing

518,525

102,493

-696

101,797

452,813

-449,259

3,554

623,876

Other short-term receivables

12,059,476

-526,803

11,532,673

1,768,069

-44,495

1,723,574

3,426,438

-2,701,915

724,523

13,980,770

Long-term receivables

1,711,003

-44,146

1,666,857

20,820

1,687,677

TOTAL

165,502,052

-685,559

164,816,493

39,416,287

-3,526,407

35,889,880

115,417,346

-103,746,810

11,670,536

212,376,909

* Subrogated receivables are included in other short term receivables from insurance operations.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

259

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Zavarovalnica Triglav

in EUR

NOT DUE

OVERDUE UP TO 180 DAYS

OVERDUE OVER 180 DAYS

TOTAL

NET VALUE

31 December 2022

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Receivables from direct insurance operations

85,990,602

-24,932

85,965,670

10,384,165

-1,312,903

9,071,262

18,848,764

-15,145,976

3,702,788

98,739,720

Receivables from insurers

65,991,779

-24,932

65,966,847

9,835,515

-1,296,590

8,538,925

15,147,525

-15,006,389

141,136

74,646,908

Receivables from insurance brokers

Other receivables from direct insurance operations

19,998,823

548,650

-16,313

532,337

3,701,239

-139,587

3,561,652

24,092,812

Receivables from co-insurance and reinsurance operations

27,195,591

4,765,201

5,195,379

37,156,172

Premium receivable from co-insurance

448,662

Premium receivable from reinsurance

15,955,755

2,371,835

3,567,523

21,895,114

Receivables from co-insurers ’ share in claims

200,310

Receivables from reinsurers ’ share in claims

10,590,864

2,393,366

1,627,856

14,612,086

Other receivables from co-insurance and reinsurance operation

Receivables for income tax refund

Other receivables

12,562,237

3,892,707

-920,523

2,972,184

55,107,253

-54,472,596

634,657

16,169,078

Other short-term receivables from insurance operations*

2,257,202

3,232,659

-913,563

2,319,096

54,912,709

-54,299,936

612,773

5,189,071

Short-term receivables from ﬁnancing

8,274,517

37,397

-6,575

30,822

124,295

-123,840

455

8,305,794

Other short-term receivables

1,725,630

622,651

-385

622,266

70,250

-48,820

21,430

2,369,325

Long-term receivables

304,888

TOTAL

125,748,430

-24,932

125,723,498

19,042,073

-2,233,426

16,808,647

79,151,396

-69,618,572

9,532,824

152,064,970

* Subrogated receivables are included in other short term receivables from insurance operations.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

260

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

NOT DUE

OVERDUE UP TO 180 DAYS

OVERDUE OVER 180 DAYS

TOTAL

NET VALUE

31 December 2021

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Gross value

Impairment

Net value

Receivables from direct insurance operations

62,724,256

-90,867

62,633,389

8,032,202

-1,226,874

6,805,328

19,914,409

-15,836,552

4,077,857

73,516,574

Receivables from insurers

57,180,390

-90,867

57,089,523

7,337,698

-1,219,558

6,118,140

15,952,913

-15,816,111

136,802

63,344,465

Receivables from insurance brokers

Other receivables from direct insurance operations

5,543,866

694,504

-7,316

687,188

3,961,496

-20,441

3,941,055

10,172,109

Receivables from co-insurance and reinsurance operations

16,077,319

4,784,925

2,660,096

23,522,340

Premium receivable from co-insurance

703,483

Premium receivable from reinsurance

9,334,452

3,858,491

2,037,158

15,230,101

Receivables from co-insurers ’ share in claims

182,738

45,402

228,140

Receivables from reinsurers ’ share in claims

5,856,646

881,032

622,938

7,360,616

Other receivables from co-insurance and reinsurance operation

Receivables for income tax refund

564,166

Other receivables

4,273,617

-25

4,273,592

3,591,774

-928,466

2,663,308

58,948,341

-58,318,754

629,587

7,566,487

Other short-term receivables from insurance operations*

1,568,569

-25

1,568,544

3,048,304

-927,771

2,120,533

58,727,842

-58,120,916

606,926

4,296,003

Short-term receivables from ﬁnancing

462,938

102,493

-695

101,798

140,640

-140,170

470

565,206

Other short-term receivables

1,962,760

440,977

79,859

-57,668

22,191

2,425,928

Long-term receivables

279,350

TOTAL

83,639,358

-90,892

83,548,466

16,408,901

-2,155,340

14,253,561

81,522,846

-74,155,306

7,367,540

105,169,567

* Subrogated receivables are included in other short term receivables from insurance operations.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

261

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

The table below shows an analysis of changes in impairment adjustment separately for the

Triglav Group and Zavarovalnica Triglav.

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

VALUE ADJUSTMENT OF RECEIVABLES FROM

POLICYHOLDERS

Impairment allowance for receivables as at 1 January

36,386,940

39,353,272

17,126,536

19,206,413

– increase of impairment allowance for receivables

3,721,837

4,399,903

2,278,125

2,607,237

– decrease in impairment allowance for receivables

-2,905,795

-3,037,943

-1,732,404

-2,523,776

– receivables write-off

-2,603,491

-4,363,319

-1,344,346

-2,163,338

– exchange rate difference

-20,848

35,030

Impairment allowance for receivables as at 31 December

34,578,643

36,386,940

16,327,911

17,126,536

IMPAIRMENT ALLOWANCE FOR OTHER

SHORT–TERM RECEIVABLES

Impairment allowance for receivables as at 1 January

60,251,140

62,548,247

59,048,712

61,510,856

– increase of impairment allowance for receivables

6,328,593

7,179,130

6,258,968

7,123,619

– decrease in impairment allowance for receivables

-6,589,842

-5,986,348

-6,548,616

-6,095,000

– receivables write-off

-3,685,703

-3,490,763

-3,545,565

-3,490,763

– exchange rate difference

318

874

Impairment allowance for receivables as at 31 December

56,304,506

60,251,140

55,213,499

59,048,712

VALUE ADJUSTMENT OF OTHER RECEIVABLES

Impairment allowance for receivables as at 1 January

11,320,696

14,089,513

226,290

350,419

– increase of impairment allowance for receivables

803,355

293,938

163,574

48,390

– decrease in impairment allowance for receivables

-178,498

-2,517,850

-26,562

-35,643

– receivables write-off

-546,976

-577,353

-27,782

-136,876

– exchange rate difference

-19,539

32,448

Impairment allowance for receivables as at 31 December

11,379,038

11,320,696

335,520

226,290

TOTAL VALUE ADJUSTMENT OF RECEIVABLES

As at 1 January

107,958,776

115,991,032

107,958,776

76,401,538

81,067,688

As at 31 December

102,262,187

71,876,930

76,401,538

3.11 Other assets

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Inventories

506,418

474,248

225,649

199,858

Deferred costs

5,457,061

3,940,050

2,164,341

1,313,402

Investments into computer software for the Group

Other assets

316,571

428,727

TOTAL

6,280,050

4,843,025

2,389,990

1,513,260

3.12 Cash and cash equivalents

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Cash in bank accounts

83,004,509

54,383,207

23,050,904

13,897,783

Call account

14,627,683

27,510,454

Cash on hand

829,260

427,969

14,338

15,208

TOTAL

98,461,452

82,321,630

23,065,241

13,912,991

In the statement of ﬁnancial position under the item “cash and cash equivalents”, cash of the

KSNT fund is disclosed in the amount of EUR 9,078,017 (2021: EUR 2,685,911) for the Triglav Group and

in the amount of EUR 5,063,955 (2021: EUR 717,080) for Zavarovalnica Triglav.

3.13 Non-current assets held for sale

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Land and business premises in Slovenia

3,564,626

Business premises in Slovenia

1,551,780

Building in Slovenia

383,358

Land and buildings outside Slovenia

247,281

TOTAL

2,182,419

3,812,044

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

262

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.14 Equity

As at 31 December 2022, the Company’s share capital amounted to EUR 73,701,392 (31 December

2021: EUR 73,701,392). It was divided into 22,735,148 ordinary registered no-par value shares. Each

share represents the same stake and corresponding amount in share capital. The proportion of each

no-par value share in the share capital is determined based on the number of no-par value shares

issued. All the shares have been paid up in full.

The shares are entered in the KDD register under the ZVTG ticker symbol and are listed on the Ljubljana

Stock Exchange Prime Market. Shareholders have the right to participate in the management of the

company and the right to participate in proﬁt.

As at 31 December 2022, there were 8,294 subscribers of shares in Zavarovalnica Triglav’s share register

(31 December 2021: 11,998). The largest subscribers are presented in the table below.

Shareholders of Zavarovalnice Triglav

in EUR

Numbers of shares

Share (%)

Subscribers

2022

Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana

7,836,628

34.47

SDH d.d., Ljubljana

6,386,644

28.09

Erste Group Bank PBZ Croatia Osiguranje OMF – ﬁduciary account, Croatia

1,526,190

6.71

Unicredit Bank Austria – ﬁduciary account, Austria

613,116

2.70

Citibank – ﬁduciary account, Great Britain

491,165

2.16

Hrvatska poštanska banka – ﬁduciary account, Croatia

232,644

1.02

Other shareholders (less than 1%)

5,648,761

24.85

TOTAL

22,735,148

100.00

in EUR

Numbers of shares

Share (%)

Subscribers

2021

Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana

7,836,628

34.47

SDH d.d., Ljubljana

6,386,644

28.09

Erste Group Bank PBZ Croatia Osiguranje OMF – ﬁduciary account, Croatia

1,526,190

6.71

Unicredit Bank Austria – ﬁduciary account, Austria

595,286

2.62

Citibank – ﬁduciary account, Great Britain

555,383

2.44

Hrvatska poštanska banka – ﬁduciary account, Croatia

232,764

1.02

Other shareholders (less than 1%)

5,602,253

24.65

TOTAL

22,735,148

100.00

Share price

in EUR

31 December 2022

31 December 2021

Quoted price of the share on the regulated securities market

34.50

36.80

Book value of equity per share

24.28

29.70

The share’s book value is calculated taking into account the Company’s total equity.

Distribution of accumulated proﬁts of Zavarovalnica Triglav

in EUR

2022

2021

Net proﬁt/loss for the year

120,472,073

73,415,549

Net proﬁt brought forward

3,540,330

50,974,423

Increase in retained income

-43,125

-29,592

Increase of other reserves from proﬁt based on the decision by the Management

and Supervisory Boards

-60,200,000

-36,700,000

ACCUMULATED PROFITS

63,769,278

87,660,380

Distribution of accumulated proﬁts

– to shareholders

84,120,050

– allocation to other reserves from proﬁt

– transfer to the following year

3,540,330

The General Meeting of Shareholders will decide on the distribution of accumulated proﬁt for 2022 at

the proposal of the Management Board and the Supervisory Board.

Reserves from proﬁt

In addition to legal and treasury share reserves, reserves from proﬁt also comprise other reserves from

proﬁt.

In accordance with the ZGD-1, the Management Board may allocate up to one half of the amount of

the net proﬁt remaining after the appropriation of the proﬁt for the purposes required by law to create

other reserves. In addition to prudent risk management, the creation of these reserves based on, in

particular, the anticipated company’s strategic needs for capital, taking into account capital sources.

When preparing the Annual Report for 2022, the Management Board formed other reserves from proﬁt

in the amount of EUR 60,200,000 (2021: EUR 36,700,000).

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

263

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Treasury shares reserves and treasury shares (as a deductible item)

The treasury shares include the shares of Zavarovalnica Triglav held by other Group companies whose

ﬁnancial statements are included in the Group’s consolidated ﬁnancial statements. Triglav, Upravljanje

nepremičnin, d.o.o. held 24,312 shares of Zavarovalnica Triglav in the amount of EUR 364,680 as at

31 December 2022. The balance of treasury shares is unchanged compared to the preceding year.

In the consolidated ﬁnancial statements, treasury shares are measured at cost and recognised as

a deductible under equity. For these shares, treasury share reserves are created in the same amount

from net proﬁt brought forward.

Fair value reserves

Fair value reserves are changes in the fair value of available-for-sale ﬁnancial assets and are reduced

by deferred taxes. Changes in fair value reserves are speciﬁed in greater detail in the statement of

comprehensive income in Section

1.3

Translation differences

Translation differences arise from foreign exchange differences in consolidation procedures. In 2022,

translation differences amounted to EUR 92,029 (2021: EUR 169,111)

105

. Translation differences mainly

refer to the change in the exchange rate of Croatian kuna and Serbian dinar.

Notes to the statement of changes in equity

The following changes are shown in the Group’s statement of changes in equity for 2022:



increase in capital for net proﬁt of the year in the amount of EUR 110,216,678 of which EUR 243,300

is accounted for by non-controlling interests;



reduction of capital for the dividend payment in the amount of EUR 84,052,338 or EUR 3.70 per share;



allocation of net proﬁt from 2021 to net proﬁt brought forward in the amount of EUR 75,439,847;



allocation of net proﬁt from 2022 to reserves from proﬁt in the amount of EUR 60,200,000;



the effect of the ﬁrst consolidation of Triglav Fondovi, d.o.o., which increased minority interests by

EUR 1,853,556;



the effect of repurchases of shares of subsidiaries from non-controlling interests, which reduced

the value of non-controlling interests by EUR 38,062, while the positive effect of repurchases in the

amount of EUR 20,927 is disclosed as an increase in the Group’s share premium;



the effect of the disproportionate capital increase of subsidiaries and the resulting increased share

of majority interests, while decreasing the value of non-controlling interests by EUR 20,779;



reduction of fair value reserves and net proﬁt brought forward in the total amount of EUR

208,116,862 of which EUR 603,203 reduces the capital of non-controlling interest holders.

The decrease relates to the re-measurement of the fair value of ﬁnancial investments and the

recalculation of actuarial gains and losses related to employee beneﬁts.

The following changes are shown in the Company’s statement of changes in equity for 2022:



increase in capital for net proﬁt of the year in the amount of EUR 120,472,073;



reduction of capital for the payment of dividends in the amount of EUR 84,120,048 based on

a General Meeting of Shareholders’ resolution;



allocation of net proﬁt from 2021 to net proﬁt brought forward in the amount of EUR 36,715,549;



allocation of net proﬁt from 2022 to reserves from proﬁt in the amount of EUR 60,200,000 based on

a General Meeting of Shareholders’ resolution;



reduction of fair value reserves and net proﬁt brought forward in the total amount of EUR

159,484,619 related to the re-measurement of the fair value of ﬁnancial investments and the

recalculation of actuarial gains and losses related to employee beneﬁts.

3.15 Subordinated liabilities

in EUR

Triglav Group

Zavarovalnica Triglav

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Amortised cost

49,522,163

49,471,831

49,522,163

49,471,831

Fair value

41,987,521

53,749,521

41,987,521

53,749,521

Subordinated bond with the ISIN code XS1980276858 was issued on 24 April 2019 in the amount

of EUR 50 million (500 denominations of EUR 100,000). The ﬁnal maturity date of said bond is

22 October 2049 and the ﬁrst call date is 22 October 2029. Until the ﬁrst call, interest is paid annually at

the ﬁxed interest rate of 4.375%. Thereafter, the interest rate is variable, i.e. 3-month Euribor + 4.845%,

and interest is paid quarterly. The bond is valued at amortised cost in the ﬁnancial statements. The bond

was listed on the Luxembourg Stock Exchange on 30 April 2019 (ISIN code XS1980276858). The bond is

subordinated (Tier 2) and issued in line with the Solvency II regulations.

Issued bond is disclosed at amortised cost. When calculating the fair value, the price according to

the valuation model is taken into account, as there are very few transactions on the stock exchange.

The price of the bond was 83.118% as at 31 December 2022 (vs. 106.660% as at 31 December 2021).

In the event of the Company’s bankruptcy or liquidation, liabilities from the above-mentioned bond

issues are subordinated to net debt instruments and are paid only when all non-subordinated liabilities

to ordinary creditors have been paid. The holders of bonds do not have the right to early redemption

before the maturity date set by the amortisation schedule. Bonds are not convertible to equity or any

other liability.

105

The amount does not include translation differences relating to non-controlling interests.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

264

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.16 Insurance technical provisions and insurance technical provisions

for unit-linked life insurance contracts

The calculation of insurance technical provisions is based on actuarial methods, with the inﬂuence

of selected estimates and assumptions, especially in the calculation of life insurance liabilities, being

very large. The estimates and assumptions used in the calculation of insurance technical provisions

for life insurance are described below.

The valuation of life and annuity insurance liabilities was carried out by using the modiﬁed

prospective net premium method, taking into account acquisition costs, including all contractual

obligations and bonuses. The insurance technical parameters used by the method are either the

same as those used for calculating insurance premium or adjusted so as to reﬂect subsequently

changed circumstances which increase the value of liabilities. This is particularly the case for annuity

insurance where in the calculation of liabilities the insurance company takes into account own, more

conservative mortality tables and a carefully set (lower) interest rate. Slovenian annuity mortality

tables SIA65 from 2010 and the interest rate of 2.4% were used for contracts with a guaranteed

interest rate of 2.4% or more. The guaranteed technical interest rate used for valuation ranged

between 0% and 5.0%. The calculation took into account acquisition costs below 3.5% of the sum

insured under life insurance policies.

The mathematical provisions for voluntary pension insurance were built up over the accumulation

period using the retrospective method. In calculating the provisions, this method takes into account

all premiums paid up to the valuation date, entry fees, sums paid out, bonuses from the guaranteed

interest rate and bonuses credited to personal accounts from proﬁt participation. The mathematical

provisions for voluntary pension insurance during the pension annuity payout period were created

using the prospective net method. The insurance technical parameters taken into account in the

calculation are either the same as those set at the time of underwriting the policy or adjusted to the

circumstances expected during pension payout, if these circumstances are worse than those taken

into account in premium calculation. The interest rate used in the valuation of liabilities during

premium payments ranged from 0.75% to 2.40%. An interest rate in the range of 0.5–2.4% and the

Slovenian annuity mortality table SIA65 from 2010 were used in the valuation of liabilities for the

pension annuity payout period.

The mathematical provisions for voluntary pension insurance were built up over the accumulation

period using the retrospective method; during the pension annuity payout period, provisions are set

aside based on the present value of estimated future liabilities (the prospective net method). The

insurance technical parameters taken into account in the calculation either match the parameters set

at the time of underwriting the policy or are adjusted for those subsequently changed circumstances

that increase the amount of liabilities, particularly in the valuation of liabilities during the pension

payout period. Slovenian annuity mortality tables SIA65 from 2010 were used in the valuation of

liabilities. An interest rate in the range of 0.5–2.4% was used in the valuation of liabilities for the

pension annuity payout period.

Notes to the statement of ﬁnancial position

Business Report

Risk Management

Accounting Report

265

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Triglav Group

Zavarovalnica Triglav

NON-LIFE INSURANCE

31 December 2022

31 December 2021

31 December 2022

31 December 2021

GROSS UNEARNED PREMIUM PROVISIONS

410,328,413

366,127,294

275,914,934

245,629,454

GROSS CLAIMS PROVISIONS

647,871,942

655,329,262

406,656,449

425,072,536

Gross claims provisions for IBNR and IBNER

215,686,091

263,481,464

111,670,066

165,583,089

Gross provisions for incurred and reported claims

396,867,410

355,693,497

265,231,659

228,650,138

Gross claims provisions for co-insurance

867,899

646,211

867,899

646,211

Expected subrogation

-4,740,711

-6,391,970

-4,740,711

-6,391,970

Provisions for claim handling costs

39,191,253

41,900,059

33,627,536

36,585,068

GROSS PROVISIONS FOR BONUSES AND DISCOUNTS

21,962,914

24,165,736

21,450,003

23,724,069

OTHER GROSS INSURANCE TECHNICAL PROVISIONS

5,031,904

4,938,070

2,516,558

1,906,281

TOTAL NON-LIFE INSURANCE TECHNICAL PROVISIONS

1,085,195,173

1,050,560,362

706,537,944

696,332,340

LIFE INSURANCE

GROSS UNEARNED PREMIUM PROVISIONS

451,984

454,613

386,566

388,396

GROSS MATHEMATICAL PROVISIONS

1,356,890,816

1,432,613,660

944,548,259

1,008,319,155

Gross mathematical provisions covering life insurance

768,079,986

810,444,012

671,371,454

723,013,422

Gross mathematical provisions covering SVPI

503,805,826

545,627,331

188,171,801

208,763,416

Gross mathematical provisions covering SVPI during the annuity pay-out period

85,005,004

76,542,317

85,005,004

76,542,317

GROSS CLAIMS PROVISIONS

21,845,253

23,114,787

20,244,749

21,494,719

Gross claims provisions for IBNR and IBNER

18,385,755

19,431,913

17,400,878

18,542,390

Gross provisions for incurred and reported claims

3,160,770

3,382,190

2,580,122

2,684,866

Gross claims provisions for co–insurance

Expected subrogation

Provisions for claim handling costs

298,728

300,683

263,749

267,463

GROSS PROVISIONS FOR BONUSES AND DISCOUNTS

OTHER INSURANCE TECHNICAL PROVISIONS

13,067,100

16,230,260

6,030,949

13,838,576

TOTAL LIFE INSURANCE TECHNICAL PROVISIONS

1,392,255,153

1,472,413,320

971,210,523

1,044,040,846

HEALTH INSURANCE

GROSS UNEARNED PREMIUM PROVISIONS

3,508,761

3,461,818

GROSS CLAIMS PROVISIONS

19,070,991

16,054,262

Gross claims provisions for IBNR and IBNER

16,844,313

14,062,216

Gross provisions for incurred and reported claims

1,931,386

1,735,686

Gross claims provisions for co-insurance

43,989

42,281

Expected subrogation

Provisions for claim handling costs

251,303

214,079

GROSS PROVISIONS FOR BONUSES AND DISCOUNTS

3,298,449

OTHER INSURANCE TECHNICAL PROVISIONS

19,049,518

30,580,173

TOTAL HEALTH INSURANCE TECHNICAL PROVISIONS

41,629,270

53,394,702

TOTAL INSURANCE TECHNICAL PROVISIONS

2,519,079,596

2,576,368,384

1,677,748,467

1,740,373,186

GROSS MATHEMATICAL PROVISIONS FOR UNIT-LINKED LIFE INSURANCE

580,944,539

622,303,398

495,682,803

540,135,052

The gross insurance technical provisions that refer

to gross mathematical provisions for unit-linked

life insurance are disclosed separately in the

ﬁnancial statements.

Other insurance technical provisions for non-life

insurance include provisions for cancellations

and provisions for unexpired risks, while other

insurance technical provisions for life insurance

include additional provisions for credit risks.

Notes to the statement of ﬁnancial position

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Gross and net claims provisions

in EUR

Triglav Group

Zavarovalnica Triglav

NON-LIFE INSURANCE

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Gross provisions for incurred and unreported claims

190,809,241

246,006,802

99,633,844

156,055,411

Gross claims provisions

215,686,091

263,481,465

111,670,066

165,583,089

Reinsurers' share

-24,876,850

-17,474,662

-12,036,222

-9,527,678

Gross provisions for incurred and reported claims

278,126,675

256,859,736

145,888,428

143,364,210

Gross claims provisions

396,867,410

355,693,497

265,231,659

228,650,138

Reinsurers' and co-insurers' share

-118,740,735

-98,833,761

-119,343,231

-85,285,928

Gross claims provisions for co-insurance

867,899

646,211

867,899

646,211

Gross claims provisions

867,899

646,211

867,899

646,211

Reinsurers' share

Expected subrogation

-4,259,780

-5,983,401

-4,259,780

-5,983,401

Gross claims provisions

-4,740,711

-6,391,970

-4,740,711

-6,391,970

Reinsurers' share

480,931

408,569

480,931

408,569

Provisions for claim handling costs

39,191,253

41,900,059

33,627,536

36,585,068

Gross claims provisions

39,191,253

41,900,059

33,627,536

36,585,068

Reinsurers' share

TOTAL LIFE INSURANCE GROSS CLAIMS PROVISIONS

504,735,288

539,429,407

275,757,926

330,667,499

TOTAL GROSS CLAIMS PROVISIONS

647,871,942

655,329,262

406,656,449

425,072,536

TOTAL REINSURERS' SHARE

-143,136,654

-115,899,852

-130,898,522

-94,405,037

in EUR

Triglav Group

Zavarovalnica Triglav

LIFE INSURANCE

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Gross provisions for incurred and unreported claims

18,385,755

19,431,913

17,400,878

18,542,390

Gross claims provisions

18,385,755

19,431,913

17,400,878

18,542,390

Reinsurers' share

Gross provisions for incurred and reported claims

3,052,075

3,226,361

2,539,658

2,594,034

Gross claims provisions

3,160,770

3,382,190

2,580,122

2,684,866

Reinsurers' share

-108,695

-155,829

-40,464

-90,832

Gross claims provisions for co-insurance

Gross claims provisions

Reinsurers' share

Expected subrogation

Gross claims provisions

Reinsurers' share

Provisions for claim handling costs

298,728

300,683

263,749

267,463

Gross claims provisions

298,728

300,683

263,749

267,463

Reinsurers' share

TOTAL LIFE INSURANCE GROSS CLAIMS PROVISIONS

21,736,558

22,958,957

20,204,285

21,403,887

TOTAL GROSS CLAIMS PROVISIONS

21,845,253

23,114,787

20,244,749

21,494,719

TOTAL REINSURERS' SHARE

-108,695

-155,829

-40,464

-90,832

Notes to the statement of ﬁnancial position

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in EUR

Triglav Group

Zavarovalnica Triglav

HEALTH INSURANCE

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Gross provisions for incurred and unreported claims

16,844,313

14,062,216

Gross claims provisions

16,844,313

14,062,216

Reinsurers' share

Gross provisions for incurred and reported claims

1,931,386

1,735,686

Gross claims provisions

1,931,386

1,735,686

Reinsurers' and co-insurers' share

Gross claims provisions for co-insurance

43,989

42,281

Gross claims provisions

43,989

42,281

Reinsurers' share

Expected subrogation

Gross claims provisions

Reinsurers' share

Provisions for claim handling costs

251,303

214,079

Gross claims provisions

251,303

214,079

Reinsurers' share

TOTAL HEALTH INSURANCE GROSS CLAIMS PROVISIONS

19,070,991

16,054,262

TOTAL GROSS CLAIMS PROVISIONS

19,070,991

16,054,262

TOTAL REINSURERS' SHARE

Notes to the statement of ﬁnancial position

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Analysis of changes in gross insurance technical provisions for Triglav Group

in EUR

Gross mathematical

Gross provisions for

Other gross insurance

Unit-linked insurance-

Total gross insurance

NON-LIFE INSURANCE

Gross unearned premium

provisions

Gross claims provisions

bonuses and discounts

technical provisions

1 January 2021

340,941,945

609,302,604

24,882,389

5,412,958

980,539,896

Increase

265,980,915

230,589,155

17,212,543

3,053,771

516,836,384

Use

-240,971,129

-184,792,860

-17,932,464

-3,531,416

-447,227,869

Exchange rate difference

175,563

230,363

3,268

2,757

411,951

31 December 2021

366,127,294

655,329,262

24,165,736

4,938,070

1,050,560,362

Increase

299,806,147

234,358,314

19,134,371

3,157,467

556,456,299

Use

-255,525,702

-241,692,031

-21,336,565

-3,064,244

-521,618,542

Exchange rate difference

-79,326

-123,603

-628

611

-202,946

31 December 2022

410,328,413

647,871,942

21,962,914

5,031,904

1,085,195,173

in EUR

Gross mathematical

Gross provisions for

Other gross insurance

Unit-linked insurance-

Total gross insurance

LIFE INSURANCE

Gross unearned premium

provisions

Gross claims provisions

bonuses and discounts

technical provisions

1 January 2021

457,883

1,457,023,963

21,380,025

14,516

20,323,718

509,984,710

2,009,184,815

Increase

408,591

107,993,661

16,372,852

618,036

170,753,420

296,146,560

Use

-411,930

-132,628,576

-14,639,940

-14,516

-4,711,573

-58,543,880

-210,950,415

Transfer between funds

Exchange rate difference

224,612

1,850

109,148

335,758

31 December 2021

454,613

1,432,613,660

23,114,787

16,230,260

622,303,398

2,094,716,718

Increase

405,727

64,147,010

19,552,573

12,843,415

21,960,654

118,909,379

Use

-408,305

-139,748,259

-20,821,445

-16,006,575

-63,245,471

-240,230,055

Transfer between funds

Exchange rate difference

-51

-121,595

-662

-74,043

-196,351

31 December 2022

451,984

1,356,890,816

21,845,252

13,067,100

580,944,539

1,973,199,690

in EUR

Gross mathematical

Gross provisions for

Other gross insurance

Unit-linked insurance-

Total gross insurance

HEALTH INSURANCE

Gross unearned premium

provisions

Gross claims provisions

bonuses and discounts

technical provisions

1 January 2021

3,361,099

14,648,539

3,298,449

22,181,056

43,489,143

Increase

3,461,818

15,595,425

8,605,950

27,663,193

Use

-3,361,099

-14,189,702

-206,833

-17,757,634

Exchange rate difference

31 December 2021

3,461,818

16,054,262

3,298,449

30,580,173

53,394,702

Increase

3,661,615

18,894,928

1,465,885

24,022,428

Use

-3,614,672

-15,878,199

-3,298,449

-12,996,540

-35,787,860

Exchange rate difference

31 December 2022

3,508,761

19,070,991

19,049,518

41,629,270

Notes to the statement of ﬁnancial position

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Analysis of changes in gross insurance technical provisions for Zavarovalnica Triglav

in EUR

Gross provisions for

Other gross insurance

Unit-linked insurance-technical

Total gross insurance

NON-LIFE INSURANCE

Gross unearned premium

Gross claims provisions

bonuses and discounts

technical provisions

provisions

technical provisions

1 January 2021

234,785,484

410,567,439

23,837,107

2,067,543

671,257,573

Increase

203,868,546

178,339,458

17,071,676

1,906,281

401,185,961

Use

-193,024,576

-163,834,361

-17,184,714

-2,067,543

-376,111,194

31 December 2021

245,629,454

425,072,536

23,724,069

1,906,281

696,332,340

Increase

234,373,304

188,387,033

18,304,653

2,516,558

443,581,548

Use

-204,087,824

-206,803,120

-20,578,719

-1,906,281

-433,375,944

31 December 2022

275,914,934

406,656,449

21,450,003

2,516,558

706,537,944

in EUR

Gross provisions for

Other gross insurance

Unit-linked insurance-technical

Total gross insurance

LIFE INSURANCE

Gross unearned premium

Gross mathematical provisions

bonuses and discounts

technical provisions

provisions

technical provisions

1 January 2021

405,332

1,041,557,084

19,692,182

17,403,211

448,726,097

1,527,783,906

Increase

388,396

58,496,458

11,907,104

141,789,936

212,581,894

Use

-405,332

-91,734,387

-10,104,567

-3,564,635

-50,380,981

-156,189,902

Transfer between funds

31 December 2021

388,396

1,008,319,155

21,494,719

13,838,576

540,135,052

1,584,175,898

Increase

386,566

39,193,204

14,475,836

4,498,981

6,109,479

64,664,066

Use

-388,396

-102,964,101

-15,725,806

-12,306,608

-50,561,728

-181,946,639

Transfer between funds

31 December 2022

386,566

944,548,259

20,244,749

6,030,949

495,682,803

1,466,893,325

Analysis of the decrease in gross mathematical provisions

Triglav Group

in EUR

Zavarovalnica Triglav

2022

2021

2022

2021

Surrenders

33,343,790

34,745,374

19,073,471

13,582,683

Endowments

75,444,380

67,344,272

61,560,929

63,191,276

Deaths

3,105,554

3,532,657

2,191,015

2,638,500

Other

27,854,532

27,006,273

20,138,684

12,321,928

TOTAL

139,748,256

132,628,576

102,964,099

91,734,387

Other releases refer to the payment of annuities, releases upon cancellation of insurance and releases of

additional valuation provisions upon termination of insurance.

Notes to the statement of ﬁnancial position

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Accounting Report

270

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Analysis of changes in loss events for non-life insurance for Triglav Group

in EUR

Year of occurence

Before 2013

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

TOTAL

Cumulative loss assessment

– at the end of year of occurrence

540,980,548

523,335,884

494,721,974

497,610,909

523,078,938

559,765,704

589,478,961

699,754,015

651,454,343

685,826,695

– 1 year after year of occurrence

447,917,990

481,304,284

477,337,992

463,199,516

513,384,536

551,464,785

615,659,287

567,980,725

679,951,181

– 2 years after year of occurrence

463,342,293

466,027,510

463,910,257

456,287,534

505,363,769

551,950,951

570,039,619

548,452,311

– 3 years after year of occurrence

439,583,068

458,436,319

460,400,102

450,345,614

501,998,857

556,923,802

566,960,366

– 4 years after year of occurrence

433,339,855

453,418,013

453,483,042

449,036,330

512,189,291

549,187,286

– 5 years after year of occurrence

431,734,293

449,934,658

452,435,034

459,081,971

508,996,041

– 6 years after year of occurrence

427,365,044

449,715,329

463,207,693

452,448,361

– 7 years after year of occurrence

425,783,667

456,124,574

457,886,746

– 8 years after year of occurrence

433,719,427

454,162,454

– 9 years after year of occurrence

432,800,066

– 10 years after year of occurrence

64,042,086

Cumulative loss assessment

432,800,066

454,162,454

457,886,746

452,448,361

508,996,041

549,187,286

566,960,366

548,452,311

679,951,181

685,826,695

5,336,671,506

Cumulative payments until balane sheet date

7,081,105

423,116,552

447,081,001

447,925,811

442,100,137

491,424,536

523,942,865

526,755,822

488,106,767

533,150,063

437,787,845

4,768,472,504

Claims provisions balance at the beginning of the period

86,582,912

11,861,384

10,510,431

16,576,143

19,730,465

24,720,821

37,785,727

55,612,309

106,601,041

265,680,122

635,661,355

Settled during the period

7,081,105

1,258,509

1,466,858

1,294,261

2,748,630

3,956,066

4,804,791

12,328,512

40,204,544

26,727,083

60,345,544

147,375,842

146,801,118

437,787,845

248,038,850

646,829,502

Claim provisions balance

56,960,980

9,683,514

7,081,454

9,960,935

10,348,224

17,571,505

25,244,421

632,241,088

Analysis of changes in loss events for non-life insurance for Zavarovalnica Triglav

in EUR

Year of occurence

Before 2013

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

TOTAL

Cumulative loss assessment

– at the end of year of occurrence

317,835,549

320,473,605

288,017,455

287,798,336

303,002,462

300,175,993

306,625,399

297,229,772

319,180,313

318,069,082

– 1 year after year of occurrence

266,546,400

276,286,823

244,620,306

248,557,097

279,993,010

278,632,613

281,008,780

263,456,383

317,270,132

– 2 years after year of occurrence

256,384,328

265,047,929

236,877,342

244,240,955

273,830,944

269,833,005

275,224,075

255,974,735

– 3 years after year of occurrence

249,972,030

260,339,640

233,832,537

238,886,264

270,644,347

266,837,916

272,559,383

– 4 years after year of occurrence

245,898,744

255,549,812

229,118,262

237,422,941

269,327,405

263,385,009

– 5 years after year of occurrence

243,246,940

251,874,520

230,089,064

235,266,092

265,678,561

– 6 years after year of occurrence

239,361,697

252,655,777

228,533,326

229,392,198

– 7 years after year of occurrence

238,448,945

247,509,999

222,414,852

– 8 years after year of occurrence

236,727,536

245,534,615

– 9 years after year of occurrence

235,796,574

– 10 years after year of occurrence

52,532,408

Cumulative loss assessment

235,796,574

245,534,615

222,414,852

229,392,198

265,678,561

263,385,009

272,559,383

255,974,735

317,270,132

318,069,082

2,626,075,142

Cumulative payments until balane sheet date

227,965,501

241,330,795

215,695,696

221,903,208

254,622,593

247,176,289

249,846,626

225,069,801

233,153,491

178,735,201

2,295,499,202

Claims provisions balance at the beginning of the period

74,651,633

9,077,889

7,371,777

13,695,549

14,058,913

17,243,589

21,692,890

31,174,165

47,999,764

157,913,269

394,879,438

Settled during the period

5,338,724

315,854

1,192,574

857,920

696,029

2,538,777

2,031,262

5,796,716

9,613,181

71,886,447

84,116,641

178,735,201

139,333,881

279,002,686

Claim provisions balance

47,193,684

7,831,073

4,203,820

6,719,156

7,488,990

11,055,968

16,208,720

22,712,757

30,904,934

377,769,624

Notes to the statement of ﬁnancial position

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

3.17 The liability adequacy test (LAT) for

life insurance

The liability adequacy test for life insurance provisions was performed as at 31 December 2022 by the

Group’s certiﬁed actuaries.

3.17.1 Test assumptions

Mortality, longevity and morbidity assumptions

Assumptions about mortality, longevity and morbidity rates are based on internal analyses of the

company’s life insurance portfolio, the data of national statistical ofﬁces, the data of reinsurers and

other sources.

Portfolio persistency

The model uses the probability of an early termination (lapse) of the insurance contract or

discontinuation of premium payments determined based on the lapse analysis of life insurance

contracts in past years. The Company continuously monitors the persistency of insurance policies by

policy term and type of insurance, adjusting assumptions accordingly.

Expenses

The model takes into account policy handling/maintenance expenses, claim handling expenses and

asset management expenses, as determined based on the cost analysis of an individual insurance

company of the Group in previous years and business plans of insurance companies in the next strategy

period. Estimated future expenses are increased annually in line with the expected inﬂation rate.

Increasing premium

In the case of insurance policies of which monthly premium changes and is directly or indirectly

dependent on wage growth, premium growth will be taken into account in the future in accordance

with the expected wage growth rate.

Expected returns and discount interest rates

In calculating the present value, (risk-free) interest rate term structure (yield curve) is used, which is

determined based on yields of the relevant local government debt securities (bonds) denominated

in the currency of policy entitlements as at the valuation date, with the latter adjusted to take into

account future surplus yields of held-to-maturity investments:



The yield curve of Slovenian government debt securities denominated in euros as at

31 December 2022 was used for Zavarovalnica Triglav. The ten-year benchmark is 3.92% for life,

annuity and voluntary pension insurance, and 3.81% for all other insurance.



The yield curve of Slovenian government debt securities denominated in euros as at

31 December 2022 was used for Triglav, pokojninska družba, d.d. The ten-year benchmark is 3.81%.



The yield curve of Slovenian government debt securities denominated in euros as at

31 December 2022 was used for Triglav Osiguranje, d.d., Sarajevo. The ten-year benchmark is 3.81%.



The yield curve of Slovenian government debt securities denominated in euros as at 31 December 2022

was used for Lovćen životna osiguranja, a.d., Podgorica. The ten-year benchmark is 3.81%.



The yield curve of Croatian government debt securities denominated in euros and with the payment

of obligations in Croatian kuna as at 31 December 2022 was used for Triglav Osiguranje, d.d., Zagreb.

The ten-year benchmark is 3.70%.



The yield curves of Serbian government debt securities denominated in euros (the ten-year

benchmark is 4.07%) and Serbian dinars (the ten-year benchmark is 7.21%) as at 31 December 2022

were used for Triglav Osiguranje, a.d.o., Belgrade.



The yield curve of Macedonian government debt securities denominated in Macedonian denar as at 31

December 2022 was used for Triglav Osiguruvanje Život, a.d., Skopje. The ten-year benchmark is 1.69%.

Proﬁt participation

The determination of the proﬁt participation rate is at the discretion of each insurance company of the

Group and regulated by internal rules. The estimated future allocation of bonuses is in line with the

expected performance, past proﬁt allocation rates and the policyholders’ reasonable expectations.

In the model, proﬁt as surplus over the technical interest rate of the policy is allocated to with-proﬁts

policies. The allocation is determined based on mathematical provisions as at the end of the ﬁnancial year.

Notes to the statement of ﬁnancial position

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Annuity factor guarantee

In the calculation, the liability adequacy test takes into account the annuity factor guarantee for

those insurance policies where future mortality projections indicate that, until the retirement of an

individual policyholder, the condition from insurance terms and conditions regarding the increase in

life expectancy that enables the change in the guaranteed annuity factors will not be fulﬁlled. The

calculation additionally takes into account that 22–40% of supplemental voluntary pension insurance

policyholders and 100% of voluntary pension insurance policyholders will choose to purchase pension

annuity under guaranteed annuity factors, with the remaining policyholders taking advantage of other

options for the payment of assets.

3.17.2 Test results

Based on the data available, the LAT results conﬁrm the sufﬁcient amount of insurance technical

provisions for life insurance for all Group companies.

3.17.3 Test sensitivity analysis

The valuation of liabilities mainly depends on insurance technical parameters such as mortality, lapse

rate, operating expenses, the probability of policyholders deciding to opt for pension annuity and future

increase in life expectancy. Parameters are sensitivity tested in order to assess the impact of changes

to the above-mentioned variables on future liabilities, the level of provisions and net proﬁt or loss

for the year. These changes are potentially practicable changes in the above parameters, which could

signiﬁcantly impact the future performance of insurance companies.

Individual sensitivity analyses take into account the change of a selected parameter with all the

remaining variables unchanged, without accounting for the value of assets backing the liabilities.

The following parameter changes were taken into account:



increased probability of mortality by 10%;



decreased probability of mortality (longevity) by 10%;



increased lapse rate by 10%;



decreased lapse rate by 10%;



increased costs by 10%;



increased share of policyholders who will decide to buy a pension annuity by 10%;



zero increase in life expectancy of the population.

The LAT results conﬁrm the sufﬁcient amount of insurance technical provisions for life insurance for all

Group companies even in the event of changed parameters.

3.18 The liability adequacy test (LAT) for

non-life insurance

The liability adequacy test for non-life insurance provisions was performed as at 31 December 2022 by

the Group’s certiﬁed actuaries.

The LAT results for the Group’s insurance companies show that provisions for unearned premium

together with provisions for unexpired risks are formed in an adequate amount. No additional

provisions had to be made.

In the context of testing the adequacy of provisions, the LAT for liabilities paid out as annuities was

carried out. The following assumptions were taken into account in the calculation. Most of these

provisions were made by Zavarovalnica Triglav.



Mortality: The risk arises from the longevity assumption. Slovenian annuity mortality tables SIA65

from 2010, which are used for the valuation of life insurance products, are used both for the

valuation of provisions and the LAT. Given that the beneﬁciaries are persons who have suffered

injuries in the past, these tables are appropriate. Due to the small size of the sample, it is not

possible to perform an appropriateness analysis of the tables to conﬁrm statistically signiﬁcant

appropriateness.



Indexation: Annuity claims can be adjusted over time to changed circumstances, such as inﬂation,

additional costs awarded by the court or resulting from other court decisions. Indexation is performed

every year, which is duly taken into account when valuating liabilities from annuity claims.



Discount interest rate:. The basic model for calculating the capitalised amounts for annuity claims

takes into account a 2.50% discount interest rate.

Notes to the statement of ﬁnancial position

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3.19 Provisions for employee beneﬁts

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Provisions for unused leave

5,232,404

4,573,999

4,123,232

3,665,467

Provisions for retirement beneﬁts

9,797,099

10,914,184

6,415,476

7,552,987

Provisions for jubilee payments

2,399,605

2,183,950

1,842,765

1,623,850

TOTAL

17,429,108

17,672,133

12,381,473

12,842,304

The following estimates and assumptions were taken into account in the calculation of provisions for

pensions and retirement beneﬁts:



The expected mortality based on crude mortality tables for the population of Slovenia from 2019

(Statistical Ofﬁce of the Republic of Slovenia), taking into account a 20% lower mortality than given

in those tables; in the companies outside of Slovenia, mortality tables from individual countries

were taken into account.



The expected annual employee turnover depending on age which, on average, stands at 2.5% in

Slovenia; in the companies outside Slovenia, the expected employee turnover in an individual

country was taken into account.



The expected annual average wage growth in Slovenia was 3.7%; in the subsidiaries outside

Slovenia, the expected average wage growth in an individual country was taken into account.



The yield curve of the Slovenian government debt securities denominated in EUR as at

31 December 2022. The ten-year benchmark is 3.81%. In the companies outside Slovenia,

the yield curves of government debt securities of individual countries were taken into account.

Analysis of the movement of employee beneﬁts at the Triglav Group

in EUR

Provisions for

unused leave

retirement beneﬁts

jubilee payments

TOTAL

As at 1 January 2021

4,680,123

10,765,010

2,336,020

17,781,153

Use of provisions in the year

-4,333,805

-347,319

-179,750

-4,860,874

Release of provisions in the year

-34,756

-135,251

-73,559

-243,566

Creation of provisions in the year

4,262,209

627,828

100,499

4,990,536

Exchange rate difference

228

3,916

740

4,884

As at 31 December 2021

4,573,999

10,914,184

2,183,950

17,672,133

Use of provisions in the year

-4,259,433

-463,030

-195,875

-4,918,338

Release of provisions in the year

-24,529

-1,438,072

-27,421

-1,490,022

Creation of provisions in the year

4,942,655

785,793

439,378

6,167,826

Exchange rate difference

-288

-1,776

-427

-2,491

As at 31 December 2022

5,232,404

9,797,099

2,399,605

17,429,108

Analysis of the movement of employee beneﬁts at Zavarovalnica Triglav

in EUR

Provisions for

unused leave

retirement beneﬁts

jubilee payments

TOTAL

As at 1 January 2021

3,858,499

7,489,893

1,724,972

13,073,364

Use of provisions in the year

-3,858,499

-176,487

-149,318

-4,184,304

Creation of provisions in the year

3,665,467

239,581

48,196

3,953,244

As at 31 December 2021

3,665,467

7,552,987

1,623,850

12,842,304

Use of provisions in the year

-3,665,467

-1,552,585

-156,259

-5,374,311

Creation of provisions in the year

4,123,232

415,075

375,173

4,913,480

As at 31 December 2022

4,123,232

6,415,477

1,842,764

12,381,473

Notes to the statement of ﬁnancial position

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Provisions for retirement beneﬁts and jubilee payments at the Triglav Group

in EUR

Provisions for

retirement beneﬁts

jubilee payments

TOTAL

As at 1 January 2021

10,765,010

2,336,020

13,101,030

Current service cost

583,976

112,839

696,815

Interest cost

-2,112

-4,648

-6,760

Actuarial gains/losses due to:

– changes in demographic assumptions

82,936

82,962

– changes in ﬁnancial assumptions

-391,422

-17,322

-408,744

– experience adjustments

549,748

-70,007

479,741

Past service cost

-36,553

1,329

-35,224

Beneﬁts paid during the year

-536,461

-179,210

-715,671

Gains/losses upon payment

-104,854

4,183

-100,671

Liabilities recognised in business combinations

Exchange rate difference

3,916

740

4,656

As at 31 December 2021

10,914,184

2,183,950

13,098,134

Current service cost

614,100

141,356

755,456

Interest cost

39,723

1,286

41,009

Actuarial gains/losses due to:

– changes in demographic assumptions

-104

– changes in ﬁnancial assumptions

-1,851,889

257,558

-1,594,331

– experience adjustments

885,479

-12,079

873,400

Past service cost

1,097

-528

569

Beneﬁts paid during the year

-445,872

-179,984

-625,856

Gains/losses upon payment

-357,843

8,473

-349,370

Liabilities recognised in business combinations

Exchange rate difference

-1,776

-427

-2,203

As at 31 December 2022

9,797,099

2,399,605

12,196,704

Sensitivity analysis of parameter changes at the Triglav Group

in EUR

Parameter

Parameter change

2022

2021

Interest rate

shift in the discount curve by +0.25%

238,036

-258,706

shift in the discount curve by -0.25%

740,213

261,833

Wage growth

change in annual wage growth by +0.5%

881,583

530,849

change in annual wage growth by -0.5%

130,401

-478,481

Mortality rate

constant increase in mortality by +20%

394,419

-97,169

constant increase in mortality by -20%

576,876

99,322

Early employment termination

shift in the expense curve by +20%

108,901

-331,476

shift in the expense curve by -20%

898,052

385,064

Provisions for retirement beneﬁts and jubilee payments at Zavarovalnica Triglav

in EUR

Provisions for

retirement beneﬁts

jubilee payments

TOTAL

As at 1 January 2021

7,489,893

1,724,972

9,214,865

Current service cost

444,288

140,920

585,208

Interest expenses

-11,952

-4,690

-16,642

Actuarial gains/loss due to:

– change in demographic assumptions

– change in ﬁnancial assumptions

-358,878

-21,065

-379,943

– experience adjustments

564,548

-71,018

493,530

Proﬁt/loss upon payment

-148,442

-149,318

-297,760

Termination payments during the year

-426,470

4,049

-422,421

As at 31 December 2021

7,552,987

1,623,850

9,176,837

Current service cost

395,232

120,280

515,512

Interest expenses

19,844

798

20,642

Actuarial gains/loss due to:

– change in demographic assumptions

– change in ﬁnancial assumptions

-1,775,399

259,093

-1,516,306

– experience adjustments

908,542

-12,645

895,897

Proﬁt/loss upon payment

-378,877

7,647

-371,230

Termination payments during the year

-306,852

-156,259

-463,111

As at 31 December 2022

6,415,477

1,842,764

8,258,241

Sensitivity analysis of parameter changes at Zavarovalnica Triglav

in EUR

Parameter

Parameter change

2022

2021

Interest rate

shift in the discount curve by +0.25%

-135,334

-186,283

shift in the discount curve by -0.25%

140,435

194,068

Wage growth

change in annual wage growth by +0.5%

258,816

322,551

change in annual wage growth by -0.5%

-230,782

-282,990

Mortality rate

constant increase in mortality by +20%

-58,971

-74,910

constant increase in mortality by -20%

59,746

75,941

Early employment termination

shift in the expense curve by +20%

-261,064

-345,669

shift in the expense curve by -20%

277,580

369,492

Notes to the statement of ﬁnancial position

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3.20 Other provisions

in EUR

Triglav Group

Zavarovalnica Triglav

As at 1 January 2021

2,809,101

769,957

Increase (creation)

831,897

281,336

Decrease (draw down)

-660,262

-226,313

Release

-468,556

-466,000

Exchange rate difference

356

As at 31 December 2021

2,512,536

358,980

Increase (creation)

530,200

343,433

Decrease (draw down)

-751,210

-465,775

Release

-144,282

-82,000

Exchange rate difference

-357

As at 31 December 2022

2,146,887

154,638

Other provisions relate to provisions for legal disputes, provisions for property, plant and equipment

acquired free of charge and provisions for received government grants.

3.21 Deferred tax assets and liabilities

Presented below is the movement of deferred tax assets and liabilities in non-offset amounts.

in EUR

DEFERRED TAX ASSETS

Triglav Group

Zavarovalnica Triglav

As at 1 January 2021

13,940,270

12,216,751

– increase

2,392,637

2,011,611

– decrease

-2,985,372

-2,356,611

As at 31 December 2021

13,347,535

11,871,751

– increase

32,593,347

24,981,590

– decrease

-2,409,855

-2,186,161

As at 31 December 2022

43,531,027

34,667,180

DEFERRED TAX LIABILITIES

Triglav Group

Zavarovalnica Triglav

As at 1 January 2021

27,701,195

21,747,913

– increase

4,367,913

4,302,528

– decrease

-10,271,963

-9,965,958

As at 31 December 2021

21,797,145

16,084,484

– increase

228,742

– decrease

-19,206,852

-16,084,484

As at 31 December 2022

2,819,035

Deferred tax assets are recognised for deductible temporary differences arising mainly from the

valuation of available-for-sale ﬁnancial instruments (for the Group: EUR 26,939,537, for Zavarovalnica

Triglav: EUR 22,047,285), the impairment of receivables (for the Group: EUR 7,936,633, for Zavarovalnica

Triglav: EUR 7,488,210), the impairment of ﬁnancial investments (for the Group: EUR 4,982,976 for

Zavarovalnica Triglav: EUR 3,991,790), the impairment of real property (for the Group: EUR 312,092,

for Zavarovalnica Triglav: EUR 285,803) and provisions for retirement and jubilee beneﬁts (for the

Group: EUR 1,134,507, for Zavarovalnica Triglav: EUR 854,092). Deferred tax assets are not recognised

from impairments of investments in subsidiaries and associates disclosed in the separate ﬁnancial

statements.

Deferred tax liabilities are mostly recognised from the valuation of ﬁnancial assets at fair value through

equity.

The offset balance of deferred tax assets and liabilities at the level of individual Group members is

presented by tax jurisdiction and the offset amount of deferred tax at the level of individual jurisdiction.

Tax rates by different countries where the Group members operate are presented in Section

2.1.4.

in EUR

2022

2021

Deferred tax

Total

Deferred tax

Total

Tax jurisdiction

assets

liabilities

deferred tax

assets

liabilities

deferred tax

Slovenia

40,268,086

-2,004,470

38,263,616

13,123,103

-20,325,169

-7,202,066

Croatia

2,360,509

66,533

-703,696

-637,163

Montenegro

530,341

-686,179

-155,838

120,850

-505,058

-384,208

Bosnia and Herzegovina

24,116

-127,733

-103,617

10,789

-115,492

-104,703

North Macedonia

321,686

-653

321,033

-147,730

Serbia

26,289

26,260

TOTAL DEFERRED TAX

43,531,027

-2,819,035

40,711,992

13,347,535

-21,797,145

-8,449,610

Total deferred tax assets

40,971,447

-259,455

927,425

Total deferred tax liabilities

-9,377,035

Notes to the statement of ﬁnancial position

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3.22 Other ﬁnancial liabilities

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Loans from banks

501,173

414,897

Financial liabilities for acquired securities

1,099

5,170

Liabilities for dividends

63,524

656,594

Other ﬁnancial liabilities

1,307,763

2,008,986

22,640

1,028,822

TOTAL

1,873,559

3,085,647

22,640

1,690,586

At Group level, other ﬁnancial liabilities include liabilities of the reinsurance company for retained

deposits of cedants.

3.23 Lease liabilities

To calculate the net present value of future leases, discount rates were used that were determined

at the level of the interest rate for risk-free government bonds, increased by the credit spread of an

individual Group member.

The table below shows the analysis of maturity of lease liabilities.

in EUR

Triglav Group

Zavarovalnica Triglav

MATURITY ANALYSIS

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

1 year

2,826,366

3,466,114

1,052,085

1,167,179

2 years

2,593,212

2,525,541

902,108

949,773

3 years

2,319,673

1,971,159

830,129

785,757

4 years

1,824,535

1,680,346

629,924

702,087

5 years

724,153

1,179,380

164,015

494,262

More than 5 years

431,897

391,868

476,407

544,785

Foreign exchange differences

47,547

60,399

TOTAL

10,767,382

11,274,806

4,054,668

4,643,844

3.24 Operating liabilities

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

DIRECT INSURANCE LIABILITIES

21,501,649

19,450,557

11,547,677

10,182,945

Liabilities to policyholders

12,966,758

11,823,747

8,678,082

7,927,509

Liabilities to insurance brokers

1,381,583

1,289,593

1,080,294

1,142,535

Other liabilities from direct insurance operations

7,153,308

6,337,217

1,314,673

688,893

Liabilities from direct insurance operations to

Group companies

474,628

424,008

LIABILITIES FROM CO-INSURANCE AND

REINSURANCE OPERATIONS

60,816,415

41,241,465

46,215,403

24,678,609

Liabilities for re/co-insurance premiums

51,519,315

33,219,399

40,207,540

18,510,739

Liabilities for co-insurers’ share of claims

9,037,842

7,866,165

6,007,863

6,167,870

Other re/co-insurance liabilities

259,258

155,901

CURRENT TAX LIABILITIES

11,457,486

2,649,636

9,697,471

TOTAL LIABILITIES FROM INSURANCE OPERATIONS

93,775,550

63,341,658

67,460,551

34,861,554

All operating liabilities are short-term and fall due within 12 months.

Notes to the statement of ﬁnancial position

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Accounting Report

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3.25 Other liabilities

in EUR

Triglav Group

Zavarovalnica Triglav

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Short-term liabilities to employees

34,501,643

29,754,061

29,963,307

25,270,631

Trade payables

12,280,632

17,435,217

10,192,690

13,450,724

Other short-term liabilities from insurance operations

10,630,213

9,632,019

5,926,537

6,244,071

Other short-term liabilities

14,328,041

6,869,471

7,300,107

3,801,755

Other long-term liabilities

829,228

1,414,672

Accrued interest on issued bonds

419,521

Short-term deferred income from charged interest

on arrears

2,932,768

3,319,240

2,932,768

3,319,240

Other accruals

24,305,772

17,115,118

4,614,809

2,626,151

TOTAL

100,227,818

85,959,319

61,349,739

55,132,093

Other short-term liabilities include recognised liabilities from the realisation of an inadequately issued guarantee under

suretyship insurance in the amount of EUR 3,982,754. The issued guarantee was the subject of an inspection by the Croatian

Financial Services Supervisory Agency (hereinafter: HANFA), which found irregularities in entering into said transaction. Due to an

inadequate procedure in issuing the guarantee, which was issued based on concluding a suretyship insurance contract, there is

a high probability that it will be realised by its bearer, therefore it was recognised as a liability in its full amount.

In addition to the aforementioned liability, other short-term liabilities include short-term liabilities for contributions, taxes and

other charges in the amount of EUR 1,287,810 (31 December 2021: EUR 1,307,551), short-term liabilities for advances received in

the amount of EUR 5,088,921 (31 December 2021: EUR 1,700,798) and liabilities for deductions from employees’ salaries in the

amount of EUR 443,568 (31 December 2021: EUR 421,868).

Notes to the income statement

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4. Notes to the income statement

4.1 Premium income

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

NON-LIFE INSURANCE

Gross written premium

826,459,419

732,320,025

584,317,354

518,612,566

Assumed re-insurance written premium

176,111,500

165,013,147

84,844,380

86,288,445

Assumed co-insurance written premium

6,601,904

7,166,838

921,702

1,108,482

Ceded co-insurance written premium

-6,139,418

-6,708,680

-2,198,557

-2,556,301

Reinsurance written premium

-242,781,872

-208,661,006

-219,851,448

-184,588,305

Changes in gross provisions for unearned premiums

-48,661,533

-27,574,814

-25,834,914

-13,596,976

Changes in reinsurers’ share of unearned premiums

14,039,616

15,524,038

7,622,095

5,954,593

Net premium income on non-life insurance

725,629,616

677,079,548

429,820,612

411,222,504

LIFE INSURANCE

Gross written premium

265,959,888

250,137,276

198,780,185

188,340,610

Assumed co-insurance written premium

201,087

23,669

Ceded co-insurance written premiums

-671,916

-972,642

-95,274

-73,329

Reinsurance written premium

-5,393,204

-4,607,547

-831,734

-751,814

Changes in gross provisions for unearned premiums

2,580

3,353

1,829

16,936

Changes in reinsurers’ share of unearned premiums

-324

326

-229

Net premium income on life insurance

260,098,111

244,584,435

197,854,777

187,532,496

HEALTH INSURANCE

Gross written premium

204,223,289

198,314,595

Changes in gross provisions for unearned premiums

-45,401

-132,527

Net premium income on health insurance

204,177,888

198,182,068

TOTAL NET PREMIUM INCOME

1,189,905,615

1,119,846,051

627,675,389

598,755,000

Notes to the income statement

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Overview of premium income by insurance class for Triglav Group

106

in EUR

2022

Gross written

premium

107

Co-insurers’

share in

gross written

premium

Ceded co-

insurance

written

premium

Reinsurance

written

premium

Own share

NON-LIFE INSURANCE

Accident insurance

40,031,971

182,236

-308,436

-2,437,784

37,467,987

Health insurance

214,767,196

1,415,959

-630,283

-881,198

214,671,674

Land motor vehicle insurance

173,836,041

99,638

-227,689

-19,998,487

153,709,503

Railway insurance

6,631,322

12,301

-350,753

-2,874,701

3,418,169

Aircraft insurance

7,051,304

-2,930,460

4,120,844

Marine Insurance

32,504,104

168,888

-71,757

-10,831,475

21,769,760

Cargo insurance

13,601,799

305,682

-424,203

-2,525,856

10,957,422

Fire and natural forces insurance

114,244,450

1,433,824

-1,649,996

-43,585,577

70,442,701

Other damage to property insurance

258,061,211

2,637,493

-1,337,176

-81,070,654

178,290,874

Motor TPL insurance

198,501,093

185

-33,550,394

164,950,884

Aircraft liability insurance

2,561,060

-1,012,142

1,548,918

Marine liability insurance

2,654,940

-487,711

2,167,229

General liability insurance

63,773,820

213,904

-1,070,704

-18,196,837

44,720,183

Credit insurance

38,221,698

-12,599,007

25,622,691

Suretyship insurance

7,076,024

5,742

-11,125

-3,477,309

3,593,332

Miscellaneous ﬁnancial loss insurance

8,268,681

126,052

-12,223

-4,552,523

3,829,987

Legal expenses insurance

627,883

-45,042

-81,478

501,363

Travel assistance insurance

24,379,613

-31

-1,688,279

22,691,303

Total non-life insurance

1,206,794,210

6,601,904

-6,139,418

-242,781,872

964,474,824

LIFE INSURANCE

Life insurance

110,306,219

201,087

-671,916

-5,392,198

104,443,192

Wedding insurance or birth insurance

Unit-linked life insurance

133,782,429

Tontines

Supplemental pension insurance

according to the ZPIZ

21,521,009

Loss of income due to illness

350,229

-1,006

349,223

Total life insurance

265,959,886

201,087

-671,916

-5,393,204

260,095,853

TOTAL

1,472,754,096

6,802,991

-6,811,334

-248,175,076

1,224,570,677

in EUR

2021

Gross written

premium

108

Co-insurers’

share in

gross written

premium

Ceded co-

insurance

written

premium

Reinsurance

written

premium

Own share

NON-LIFE INSURANCE

Accident insurance

39,130,478

212,297

-324,080

-1,145,210

37,873,485

Health insurance

206,710,349

856,987

-254,644

-770,136

206,542,556

Land motor vehicle insurance

157,378,102

46,559

-187,585

-14,622,091

142,614,985

Railway insurance

4,910,990

10,201

-126,174

-1,988,898

2,806,119

Aircraft insurance

7,284,977

-3,780,515

3,504,462

Marine Insurance

18,209,242

140,003

-2,865,578

15,483,667

Cargo insurance

11,404,091

-588,173

-2,087,197

8,728,721

Fire and natural forces insurance

114,457,118

1,555,417

-1,359,902

-42,807,649

71,844,984

Other damage to property insurance

229,947,365

3,980,633

-2,293,835

-79,227,479

152,406,684

Motor TPL insurance

180,798,516

12,403

-20,907,171

159,903,748

Aircraft liability insurance

3,362,804

-2,027,875

1,334,929

Marine liability insurance

2,436,261

-16,000

-306,603

2,113,658

General liability insurance

55,358,707

172,119

-1,400,139

-16,601,666

37,529,021

Credit insurance

30,674,964

-10,207,909

20,467,055

Suretyship insurance

6,510,031

129,370

-101,292

-3,578,313

2,959,796

Miscellaneous ﬁnancial loss insurance

6,731,191

50,849

-8,618

-4,881,327

1,892,095

Legal expenses insurance

615,445

-48,238

-73,152

494,055

Travel assistance insurance

19,727,136

-782,237

18,944,899

Total non-life insurance

1,095,647,767

7,166,838

-6,708,680

-208,661,006

887,444,919

LIFE INSURANCE

Life insurance

111,908,734

23,669

-972,642

-4,606,600

106,353,161

Wedding insurance or birth insurance

Unit-linked life insurance

117,592,407

Tontines

Supplemental pension insurance

according to the ZPIZ

20,316,064

Loss of income due to illness

320,071

-947

319,124

Total life insurance

250,137,276

23,669

-972,642

-4,607,547

244,580,756

TOTAL

1,345,785,043

7,190,507

-7,681,322

-213,268,553

1,132,025,675

106

Non-life insurance also includes health insurance.

107

Gross written premium also includes inward reinsurance premium.

108

Gross written premium also includes inward reinsurance premium.

Notes to the income statement

Business Report

Risk Management

Accounting Report

280

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Overview of premium income by insurance class for Zavarovalnica Triglav

in EUR

2022

Gross written

premium

Co-insurers’

share in

gross written

premium

Ceded co-

insurance

written

premium

Reinsurance

written

premium

Own share

NON-LIFE INSURANCE

Accident insurance

25,342,439

-161,262

-2,298,527

22,882,650

Health insurance

933,956

-392,784

541,171

Land motor vehicle insurance

141,497,773

-14,914,490

126,583,283

Railway insurance

5,880,448

-2,158,450

3,721,998

Aircraft insurance

2,546,345

-1,311,385

1,234,960

Marine Insurance

18,083,405

-18,839,586

-756,181

Cargo insurance

7,975,392

-420,081

-2,690,271

4,865,040

Fire and natural forces insurance

55,460,264

921,702

-496,450

-23,888,047

31,997,468

Other damage to property insurance

182,452,893

-91,645

-96,593,442

85,767,806

Motor TPL insurance

121,932,761

-24,267,115

97,665,647

Aircraft liability insurance

1,557,041

-572,926

984,115

Marine liability insurance

1,427,546

-428,211

999,335

General liability insurance

48,665,425

-583,006

-17,712,429

30,369,990

Credit insurance

26,957,217

-8,000,687

18,956,530

Suretyship insurance

4,516,701

-2,273,061

2,243,640

Miscellaneous ﬁnancial loss insurance

3,643,791

-8,287

-1,922,456

1,713,049

Legal expenses insurance

610,916

-45,042

-83,078

482,797

Travel assistance insurance

19,677,421

-1,897,287

17,780,134

Total non-life insurance

669,161,734

921,702

-2,198,557

-219,851,448

448,033,431

LIFE INSURANCE

Life insurance

74,655,209

-95,274

-795,987

73,763,948

Wedding insurance or birth insurance

Unit-linked life insurance

102,603,967

-35,747

102,568,220

Tontines

Supplemental pension insurance

according to the ZPIZ

21,521,009

Loss of income due to illness

Total life insurance

198,780,185

-95,274

-831,734

197,853,177

TOTAL

867,941,919

921,702

-2,293,831

-220,683,182

645,886,608

in EUR

2021

Gross written

premium

Co-insurers’

share in

gross written

premium

Ceded co-

insurance

written

premium

Reinsurance

written

premium

Own share

NON-LIFE INSURANCE

Accident insurance

25,235,448

-158,758

-965,296

24,111,394

Health insurance

787,154

-384,014

403,140

Land motor vehicle insurance

129,298,413

-10,551,624

118,746,789

Railway insurance

4,614,328

-1,435,278

3,179,050

Aircraft insurance

3,683,029

-3,170,945

512,084

Marine Insurance

7,689,364

-3,640,157

4,049,207

Cargo insurance

6,858,896

-588,173

-1,893,395

4,377,328

Fire and natural forces insurance

59,690,602

1,106,031

-434,112

-23,927,164

36,435,357

Other damage to property insurance

165,026,243

-73,282

-94,113,835

70,839,126

Motor TPL insurance

109,621,258

-13,863,079

95,758,179

Aircraft liability insurance

2,779,402

-2,504,422

274,980

Marine liability insurance

1,390,962

-16,000

-170,538

1,204,424

General liability insurance

42,716,918

2,451

-845,106

-15,547,069

26,327,194

Credit insurance

21,883,872

-6,241,117

15,642,755

Suretyship insurance

3,600,839

-1,903,355

1,697,484

Miscellaneous ﬁnancial loss insurance

2,948,793

-8,618

-3,679,086

-738,911

Legal expenses insurance

595,434

-48,238

-67,476

479,720

Travel assistance insurance

16,480,055

-914,469

15,565,586

Total non-life insurance

604,901,010

1,108,482

-2,556,301

-184,588,305

418,864,886

LIFE INSURANCE

Life insurance

79,238,943

-73,329

-717,100

78,448,514

Wedding insurance or birth insurance

Unit-linked life insurance

88,785,604

-34,715

88,750,889

Tontines

Supplemental pension insurance

according to the ZPIZ

20,316,064

Loss of income due to illness

Total life insurance

188,340,611

-73,329

-751,815

187,515,467

TOTAL

793,241,621

1,108,482

-2,629,630

-185,340,120

606,380,353

Notes to the income statement

Business Report

Risk Management

Accounting Report

281

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.2 Income from investments

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

INTEREST INCOME FROM FINANCIAL ASSETS

– available for sale

18,677,538

18,961,233

10,157,304

10,629,506

– loans and deposits

1,357,476

1,312,236

673,908

852,057

– held to maturity

10,474,246

7,267,273

7,549,780

6,692,393

– at fair value through proﬁt and loss

3,892,359

6,740,537

1,281,997

1,689,166

Inetrest income

34,401,619

34,281,279

19,662,989

19,863,122

DIVIDENDS FROM

– available-for-sale ﬁnancial assets

4,649,044

4,517,664

4,410,224

4,285,150

– ﬁnancial assets at fair value through proﬁt and loss

1,471,355

1,510,514

684,423

539,485

– subsidiaries and associates

31,339

41,552

32,765,113

8,000,000

TOTAL DIVIDENDS

6,151,738

6,069,730

37,859,760

12,824,635

Fair value gains

5,085,853

90,078,182

2,065,425

73,502,582

Realised gains on disposals

37,775,442

16,301,340

34,325,465

14,888,504

Other ﬁnancial income

8,141,729

8,608,640

3,668,296

2,713,940

Proﬁt on investments accounted for using the equity

method

1,842,183

1,444,054

TOTAL INVESTMENT INCOME

93,398,564

156,783,225

97,581,935

123,792,783

Gains from changes in fair value are described in detail in Section

4.4

and gains on disposal in Section

4.5

Data in the table also include income from investments in associates.

4.3 Expenses from investments

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Fair value losses

132,594,212

16,138,516

89,339,216

6,127,181

Realised loss on disposals

50,341,763

7,122,739

46,526,684

6,870,017

Loss on disposals of subsidiaries

Loss on impairment of ﬁnancial assets

9,034,736

33,628

10,353,229

1,066,400

Other ﬁnance costs

9,674,188

8,537,903

7,216,451

5,390,136

Net exchange losses

3,102,252

1,526,841

2,109,615

694,116

Other expenses from ﬁnancial assets and liabilities

1,756,509

2,612,849

1,229,269

1,103,281

- Asset management costs

4,815,427

4,398,213

3,877,567

3,592,739

Loss on equity investments in associates accounted for

using the equity method

145,632

TOTAL EXPENSES FROM FINANCIAL ASSETS

201,644,899

31,978,418

153,435,580

19,453,734

Losses from changes in fair value are described in detail in Section

4.4

and losses on disposal of ﬁnancial

assets in Section

4.5

. Data in the table also include expenses from investments in associates. Expenses

due to impairment of ﬁnancial assets of Zavarovalnica Triglav also include expenses due to impairment

of investments in subsidiaries in the total amount of EUR 3,919,788 (see the section

3.5

4.4 Gains/losses from changes in the fair value of

ﬁnancial assets

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Financial assets recognised at fair value through proﬁt/loss

-127,400,182

73,908,119

-87,273,791

67,343,854

– gains

5,085,853

89,984,986

2,065,425

73,409,386

– losses

-132,486,035

-16,076,867

-89,339,216

-6,065,532

Derivative ﬁnancial instruments

-108,172

31,547

– gains

93,196

– losses

-108,172

-61,649

NET GAINS FROM CHANGES IN FAIR VALUE

-127,508,354

73,939,666

-87,273,791

67,375,401

Net gains/losses from changes in the fair value of ﬁnancial assets include net unrealised gains/losses

on unit-linked life insurance assets.

Notes to the income statement

Business Report

Risk Management

Accounting Report

282

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.5 Net realised gains and losses

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Financial assets recognised at fair value through proﬁt/loss

-17,147,763

3,730,480

-17,235,132

3,487,484

– realised gains on disposals

1,501,931

6,380,071

561,805

5,972,200

– realised losses on disposals

-18,649,694

-2,649,591

-17,796,937

-2,484,716

Available-for-sale ﬁnancial assets

4,712,399

5,536,389

5,164,870

4,665,592

– realised gains on disposals

36,273,511

9,870,950

33,763,660

8,912,305

– realised losses on disposals

-31,561,112

-4,334,561

-28,598,790

-4,246,713

Derivatives

-130,957

-92,268

-130,957

-138,587

– gains on disposal

46,319

– Losses on disposal

-130,957

-138,587

-130,957

-138,587

Loans and deposits

4,000

– gains on disposal

4,000

– losses on disposal

Held to – maturity ﬁnancial assets

– gains on disposal

– losses on disposal

TOTAL REALISED GAINS AND LOSSES

-12,566,321

9,178,601

-12,201,219

8,018,488

4.6 Other insurance income

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Fees and commission income

49,184,889

38,916,088

50,904,726

38,196,377

– reinsurance commission income

49,082,208

38,817,938

50,802,044

38,098,226

– investment management services

102,681

98,150

102,682

98,151

Other income from insurance operations

10,750,096

9,878,212

7,631,564

7,190,656

–

income from sale of green cards for motor vehicles

976,267

1,560,468

239,433

758,052

–

income from claims settled for other insurance companies

912,028

580,433

498,304

376,336

– income from assistance services

15,052

30,508

6,870

23,622

–

other income from insurance operations

3,867,995

3,474,891

2,384,128

2,163,993

– interest from receviables

4,978,754

4,231,912

4,502,829

3,868,653

OTHER INSURANCE INCOME

59,934,985

48,794,300

58,536,290

45,387,033

4.7 Other income

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Income from investment property

7,293,257

6,918,534

6,058,930

5,596,224

Income from disposal of investment property

7,953,757

319,781

154,310

151,349

Income from disposal of intangible assets

140,083

110

Income from disposal of property, plant and equipment

82,299

418,456

Other income

3,680,578

6,480,257

4,574,380

2,974,819

Operating income of non-insurance companies

40,269,245

39,038,452

– income from asset management

30,101,187

30,184,817

– other operating income of non-insurance companies

10,168,058

8,853,635

Revaluation income

406,909

158,580

248,607

103,454

TOTAL OTHER INCOME

59,826,129

53,334,060

11,036,337

8,825,846

Under other income amounting to EUR 4,574,380 as at 31 December 2022, the Company discloses

income from the provision of services for Group companies in the total amount of EUR 1,439,610

(2021: EUR 1,664,984), income from deductible VAT in the amount of EUR 212,526 (2021: EUR 195,450),

the release of provisions for lawsuits in the amount of EUR 82,000 (2021: EUR 466,000), income from

incentives for employing people with disabilities in the amount of EUR 155,268 (2021: EUR 201,482),

write-off of liabilities from dividends from previous years in the amount of EUR 1,817,200 (2021:

EUR 0) and other income in the amount of EUR 476,291 (2021: EUR 446,903).

Notes to the income statement

Business Report

Risk Management

Accounting Report

283

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.8 Claims

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

NON-LIFE INSURANCE

Gross claims settled

404,111,444

354,171,578

283,732,864

248,226,326

Gross claims paid from inward reinsurance

74,236,187

53,980,157

26,263,098

16,384,151

Gross claims paid from coinsurance

1,922,442

1,153,280

2,369

1,280

Income from gross subrogated receivables

-16,827,948

-16,050,134

-11,756,155

-11,885,927

Reinsurers’ share of gross claims settled

-56,360,619

-41,047,824

-48,929,067

-34,824,864

Co-insurers’ share of gross claims settled

-2,055,999

-1,913,225

-683,799

-744,339

Change in gross claims provisions

-5,325,072

39,093,301

-18,416,087

14,505,097

Change in gross claims provisions for re/co-insurer’s share

-29,445,649

-26,038,184

-36,493,486

-24,169,631

Net claims incurred on non-life insurance

370,254,786

363,348,949

193,719,737

207,492,093

LIFE INSURANCE

Gross claims settled

185,401,039

185,673,862

154,213,675

156,142,551

Coinsurers’ shares and gross claims

-554,601

-1,064,815

-9,054

-8,369

Reinsurers' share in gross claims

-934,519

-859,879

-317,487

-241,386

Change in gross claims provisions

-1,254,110

1,753,071

-1,249,970

1,802,537

Change in reinsurers' share in gross claims provisions

32,433

-61,517

50,368

-50,202

Net claims incurred on life insurance

182,690,242

185,440,722

152,687,532

157,645,131

HEALTH INSURANCE

Gross claims settled

183,494,904

157,763,966

Income from gross exercised subrogation receivables

-107,527

-112,659

Coinsurers’ shares in gross claims paid

-1,942

1,283

Change in gross claims provisions

3,015,022

1,402,895

Change in claims provisions for reinsurers’ share

1,708

2,828

Equalisation scheme expenses

7,385,238

7,180,804

TOTAL net claims incurred on health insurance

193,787,403

166,239,117

NET CLAIMS INCURRED TOTAL

746,732,431

715,028,788

346,407,269

365,137,224

Notes to the income statement

Business Report

Risk Management

Accounting Report

284

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Overview of net claims incurred by insurance class

in EUR

Triglav Group

2022

Gross claims

109

Gross claims paid

from coinsurance

Coinsurers’ shares

Income from

subrogated receivables

Reinsurers' share

Net claims incurred

NON-LIFE INSURANCE

Accident insurance

21,960,900

55,290

-245,156

-7,287

-386,899

21,376,848

Health insurance

189,330,175

958,989

-345,726

-131,616

-405,893

189,405,929

Land motor vehicle insurance

115,902,914

826

-219,599

-3,874,889

-7,469,814

104,339,438

Railway insurance

1,045,598

13,116

-10,281

-3,845

1,044,588

Aircraft insurance

1,068,068

-429,613

638,455

Marine Insurance

8,822,915

-150,953

-788,602

7,883,435

Cargo insurance

4,032,355

-203,467

-215,438

-608,204

3,005,246

Fire and natural forces insurance

51,348,429

13,709

-79,805

-196,609

-7,234,909

43,850,815

Other damage to property insurance

102,015,284

577,429

-275,322

-463,378

-21,064,246

80,789,767

Motor TPL insurance

113,272,117

2,825

-4,113,784

-13,549,495

95,611,663

Aircraft liability insurance

361,702

-158,429

203,273

Marine liability insurance

802,850

-3,319

-14,449

-4,099

780,983

General liability insurance

15,654,340

212,890

-511,564

-428,416

-785,651

14,141,599

Credit insurance

12,744,430

-7,077,818

-2,464,302

3,202,310

Suretyship insurance

1,577,314

87,293

-160,874

-216,963

-186,485

1,100,285

Miscellaneous ﬁnancial loss insurance

2,204,740

-178,154

2,026,586

Legal expenses insurance

69,078

-2,828

-4,178

62,072

Travel assistance insurance

19,629,327

-43,875

-637,801

18,947,651

Total non-life insurance

661,842,536

1,922,442

-2,057,941

-16,935,475

-56,360,619

588,410,943

LIFE INSURANCE

Life insurance

117,663,948

-554,601

-934,519

116,174,828

Wedding insurance or birth insurance

Unit-linked life insurance

62,303,614

Tontines

Supplemental pension insurance according to the ZPIZ

5,329,529

Loss of income due to illness

103,947

Total life insurance

185,401,038

-554,601

-934,519

183,911,918

TOTAL

847,243,574

1,922,442

-2,612,542

-16,935,475

-57,295,138

772,322,861

109

Gross claims paid also include gross claims paid from inward reinsurance and equalisation scheme expenses for supplemental health insurance.

Notes to the income statement

Business Report

Risk Management

Accounting Report

285

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Triglav Group

2021

Gross claims

110

Gross claims paid

from coinsurance

Coinsurers’ shares

Income from

subrogated receivables

Reinsurers' share

Net claims incurred

NON-LIFE INSURANCE

Accident insurance

23,308,302

58,455

-172,853

-5,593

-595,720

22,592,591

Health insurance

162,804,419

556,111

-153,747

-113,080

-331,604

162,762,099

Land motor vehicle insurance

98,314,466

21,449

-291,003

-3,460,340

-6,142,260

88,442,312

Railway insurance

1,442,477

-550,087

-102

892,288

Aircraft insurance

1,654,818

-1,040,613

614,205

Marine Insurance

5,407,210

515

-48,081

-74,632

5,285,012

Cargo insurance

2,877,212

-220,857

-173,572

-115,209

2,367,574

Fire and natural forces insurance

49,815,866

4,317

-67,341

-224,422

-12,081,808

37,446,612

Other damage to property insurance

72,522,993

443,977

-468,072

-418,055

-10,045,103

62,035,740

Motor TPL insurance

100,895,715

17,480

-2,852,923

-6,842,066

91,218,206

Aircraft liability insurance

560,903

-371,568

189,335

Marine liability insurance

560,882

-24,041

-1,400

535,441

General liability insurance

13,968,126

50,976

-461,694

-221,470

-401,868

12,934,070

Credit insurance

12,285,635

-7,441,529

-1,599,993

3,244,113

Suretyship insurance

1,518,451

-676,329

-78,243

763,879

Miscellaneous ﬁnancial loss insurance

2,543,480

-1,128,244

1,415,236

Legal expenses insurance

66,885

-4,254

-334

62,297

Travel assistance insurance

15,367,865

-25,393

-197,057

15,145,415

Total non-life insurance

565,915,705

1,153,280

-1,911,943

-16,162,793

-41,047,824

507,946,425

LIFE INSURANCE

Life insurance

119,337,138

-1,064,814

-859,879

117,412,445

Wedding insurance or birth insurance

Unit-linked life insurance

61,808,056

Tontines

Supplemental pension insurance according to the ZPIZ

4,425,926

Loss of income due to illness

102,738

Total life insurance

185,673,858

-1,064,814

-859,879

183,749,165

TOTAL

751,589,563

1,153,280

-2,976,757

-16,162,793

-41,907,703

691,695,590

110

Gross claims paid also include gross claims paid from inward reinsurance and equalisation scheme expenses for supplemental health insurance.

Notes to the income statement

Business Report

Risk Management

Accounting Report

286

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Zavarovalnica Triglav

2022

Gross claims

Gross claims paid

from coinsurance

Coinsurers’ shares

Income from

subrogated receivables

Reinsurers' share

Net claims incurred

NON-LIFE INSURANCE

Accident insurance

12,485,330

-46,550

-4,030

-401,032

12,033,718

Health insurance

308,705

-10,768

297,936

Land motor vehicle insurance

92,764,887

-1,969,789

-6,580,810

84,214,287

Railway insurance

1,031,427

-26

1,031,401

Aircraft insurance

81,464

-3,408

78,056

Marine Insurance

2,605,896

-2,069,050

536,921

Cargo insurance

2,579,234

-215,224

-170,586

-1,071,515

1,121,909

Fire and natural forces insurance

18,876,250

1,599

-71,611

-41,778

-3,258,807

15,505,653

Other damage to property insurance

61,724,986

-40,601

-115,167

-21,317,762

40,251,456

Motor TPL insurance

75,110,990

-2,123,131

-10,855,397

62,132,462

Aircraft liability insurance

102,773

-57,323

45,449

Marine liability insurance

340,918

-3,319

-7,614

329,985

General liability insurance

12,028,007

695

-292,898

-365,919

-817,980

10,551,905

Credit insurance

10,318,991

-6,709,898

-1,127,845

2,481,248

Suretyship insurance

449,053

-213,362

20,807

256,499

Miscellaneous ﬁnancial loss insurance

1,320,419

-236,511

1,083,908

Legal expenses insurance

68,821

-2,828

-3,261

62,732

Travel assistance insurance

17,797,811

-42,495

-1,141,533

16,613,782

Total non-life insurance

309,995,962

2,369

-683,799

-11,756,155

-48,929,067

248,629,310

LIFE INSURANCE

Life insurance

100,112,762

-9,054

-295,948

99,807,760

Wedding insurance or birth insurance

Unit-linked life insurance

48,771,384

-21,539

48,749,845

Tontines

Supplemental pension insurance according to the ZPIZ

5,329,529

Loss of income due to illness

Total life insurance

154,213,675

-9,054

-317,487

153,887,134

TOTAL

464,209,637

2,369

-692,853

-11,756,155

-49,246,554

402,516,444

Notes to the income statement

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Risk Management

Accounting Report

287

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Zavarovalnica Triglav

2021

Gross claims

Gross claims paid

from coinsurance

Coinsurers’ shares

Income from

subrogated receivables

Reinsurers' share

Net claims incurred

NON-LIFE INSURANCE

Accident insurance

12,761,262

-42,825

-5,343

-547,077

12,166,017

Health insurance

232,435

-7,204

225,231

Land motor vehicle insurance

77,841,773

-1,625,455

-5,677,647

70,538,671

Railway insurance

1,427,560

-265,554

-414

1,161,592

Aircraft insurance

463,425

-414,388

49,037

Marine Insurance

506,568

515

-278,014

229,069

Cargo insurance

1,479,440

-220,857

-94,862

-133,248

1,030,473

Fire and natural forces insurance

19,908,467

240

-58,208

-176,322

-7,255,227

12,418,950

Other damage to property insurance

45,288,870

-27,641

-270,220

-10,165,725

34,825,284

Motor TPL insurance

65,402,571

-1,401,336

-6,796,060

57,205,175

Aircraft liability insurance

48,321

-4,078

44,243

Marine liability insurance

278,905

-24,041

-4,203

250,661

General liability insurance

10,930,823

525

-359,310

-169,996

-671,299

9,730,743

Credit insurance

11,232,345

-7,186,442

-1,264,339

2,781,564

Suretyship insurance

959,033

-667,259

-17,219

274,555

Miscellaneous ﬁnancial loss insurance

1,592,237

-962,342

629,895

Legal expenses insurance

66,610

-4,254

-433

61,923

Travel assistance insurance

14,189,833

-23,139

-633,153

13,533,541

Total non-life insurance

264,610,478

1,280

-744,340

-11,885,928

-34,824,866

217,156,624

LIFE INSURANCE

Life insurance

100,677,757

-8,369

-236,262

100,433,126

Wedding insurance or birth insurance

Unit-linked life insurance

51,038,868

-5,125

51,033,743

Tontines

Supplemental pension insurance according to the ZPIZ

4,425,926

Loss of income due to illness

Total life insurance

156,142,551

-8,369

-241,387

155,892,795

TOTAL

420,753,029

1,280

-752,709

-11,885,928

-35,066,253

373,049,419

Notes to the income statement

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Risk Management

Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.9 Reinsurance result

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Reinsurance premiums

-248,175,076

-213,268,553

-220,683,182

-187,969,749

Changes in reinsurers’ share of unearned premiums

14,039,292

15,524,365

7,621,866

5,954,686

Reinsurers’ share of claims

57,295,138

41,907,703

49,246,554

35,066,250

Changes in claims provisions for reinsurers’ shares

29,411,508

26,096,873

36,443,118

24,219,833

Net result from reinsurance operations

-147,429,138

-129,739,612

-127,371,644

-122,728,980

Reinsurance commission

49,082,208

-98,346,930

38,817,937

-90,921,675

45,463,598

-81,908,046

33,189,769

-89,539,211

GROSS REINSURANCE RESULT

4.10 Change in other insurance-technical

provisions

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Change in other insurance technical provisions

-79,041,779

-2,113,408

-56,716,599

-13,989,227

–

changes in gross provisions for cancellations

-59,131

-30,917

112,319

25,616

–

changes in gross provisions for unexpired risks

-11,404,476

7,877,024

497,958

-186,878

–

changes in gross provisions for other catastrophic risks

49,367

–

changes in gross provisions for life insurance

-70,664,672

-10,190,070

-57,851,848

-14,009,153

–

changes in gross provisions for bonuses from

with-proﬁts life insurance

3,086,500

181,188

524,972

181,188

Change in gross provisions for unit-linked insurance contracts

-43,787,917

112,661,349

-47,072,818

91,860,583

TOTAL CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS

-122,829,696

110,547,941

-103,789,417

77,871,356

4.11 Expenses for bonuses and discounts

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Settled bonuses and discounts

12,794,170

11,584,788

11,441,877

10,603,774

Changes in gross provisions for bonuses and discounts

-1,995,420

10,798,750

-180,647

-2,274,065

9,167,812

-113,038

TOTAL EXPENSES FOR BONUSES AND DISCOUNTS

11,404,141

10,490,736

4.12 Expenses

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Acquisition costs

211,429,288

184,911,170

142,569,005

124,268,560

Other operating costs

90,498,842

81,946,738

51,695,579

46,066,306

Claim handling costs*

31,416,954

28,586,329

23,232,828

21,120,474

Costs of asset management**

4,815,427

4,398,213

3,877,567

3,592,739

Operating expenses from non-insurance operations***

36,723,021

374,883,532

33,548,996

333,391,446

TOTAL

221,374,979

195,048,079

Claim handling expenses are disclosed in the ﬁnancial statements as part of gross claims paid.

Asset management costs are disclosed in the ﬁnancial statements as part of expenses from investments.

*** Expenses from non-insurance operations are disclosed in the consolidated ﬁnancial statements as part of other expenses.

Notes to the income statement

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Risk Management

Accounting Report

289

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.12.1 Gross operating expenses by nature and business segment

in EUR

Triglav Group

2022

Non-life insurance

Life insurance

Health insurance

Total costs of insurance

operations

Costs of non-insurance

operations

TOTAL

Acquisition costs

61,409,276

16,335,551

1,505,164

79,249,991

Cost of goods sold

7,722

Depreciation of operating assets

16,770,242

4,331,638

844,472

21,946,352

2,578,208

24,524,560

Labour costs

128,009,322

17,581,939

7,663,539

153,254,800

17,683,031

170,937,831

Wages and salaries

88,428,381

10,420,962

5,538,451

104,387,794

12,313,795

116,701,589

Social security and pension insurance costs

19,161,533

3,434,096

931,220

23,526,849

3,312,477

26,839,326

Other labour costs

20,419,408

3,726,881

1,193,868

25,340,157

2,056,759

27,396,916

Costs of services provided by natural persons other than SPs, including related taxes

1,150,558

105,771

188,369

1,444,698

Other operating costs

61,834,219

12,239,398

8,191,052

82,264,669

16,454,061

98,718,730

Costs of entertainment, advertising, trade shows

17,210,491

2,123,575

1,223,274

20,557,340

1,658,087

22,215,427

Costs of material and energy

6,944,034

1,272,741

275,686

8,492,461

2,045,029

10,537,490

Maintenance costs

7,873,047

1,921,890

3,208,454

13,003,391

1,271,332

14,274,723

Reimbursement of labour-related costs

3,393,245

581,953

92,248

4,067,446

668,904

4,736,350

Costs of intellectual and personal services

5,462,588

1,158,123

520,024

7,140,735

757,594

7,898,329

Membership fees and charges

2,760,748

512,846

237,477

3,511,071

1,035,176

4,546,247

Costs of services - transport and communications

3,053,336

1,010,013

1,500,050

5,563,399

126,439

5,689,838

Costs for insurance premiums

849,179

76,078

176,055

1,101,312

251,511

1,352,823

Payment transaction costs and banking services

1,466,304

461,361

255,830

2,183,495

4,431,444

6,614,939

Rents

4,816,207

867,205

15,396

5,698,808

753,054

6,451,862

Costs of professional training services

1,021,670

254,677

93,264

1,369,611

176,753

1,546,364

Other costs of services

6,983,370

1,998,936

593,294

9,575,600

3,278,738

12,854,338

TOTAL OPERATING EXPENSES

269,173,617

50,594,297

18,392,596

338,160,510

36,723,022

374,883,532

in EUR

Triglav Group

2021

Non-life insurance

Life insurance

Health insurance

Total costs of insurance

operations

Costs of non-insurance

operations

TOTAL

Acquisition costs

48,358,908

13,692,956

984,955

63,036,819

Cost of goods sold

130,008

Depreciation of operating assets

14,726,165

3,271,048

931,743

18,928,956

2,578,441

21,507,397

Labour costs

120,194,355

16,592,516

6,732,156

143,519,027

15,603,003

159,122,030

Wages and salaries

83,158,246

10,029,319

5,141,964

98,329,529

10,948,224

109,277,753

Social security and pension insurance costs

18,956,283

3,199,344

858,629

23,014,256

2,874,701

25,888,957

Other labour costs

18,079,826

3,363,853

731,563

22,175,242

1,780,078

23,955,320

Costs of services provided by natural persons other than SPs, including related taxes

1,244,112

95,630

195,952

1,535,694

Other operating costs

54,323,648

11,524,910

6,973,396

72,821,954

15,237,544

88,059,498

Costs of entertainment, advertising, trade shows

15,473,518

2,658,404

1,021,141

19,153,063

1,531,891

20,684,954

Costs of material and energy

4,980,416

970,375

267,730

6,218,521

1,632,672

7,851,193

Maintenance costs

9,220,834

2,008,037

2,680,383

13,909,254

1,126,083

15,035,337

Reimbursement of labour-related costs

2,509,044

399,909

50,008

2,958,961

496,101

3,455,062

Costs of intellectual and personal services

3,678,377

948,568

484,086

5,111,031

862,323

5,973,354

Membership fees and charges

2,187,915

356,050

142,550

2,686,515

793,363

3,479,878

Costs of services - transport and communications

3,171,740

952,785

1,256,779

5,381,304

125,837

5,507,141

Costs for insurance premiums

679,107

43,371

91,675

814,153

38,535

852,688

Payment transaction costs and banking services

1,211,630

414,022

250,149

1,875,801

4,921,518

6,797,319

Rents

4,172,267

769,422

7,528

4,949,217

690,172

5,639,389

Costs of professional training services

858,411

210,383

111,124

1,179,918

123,096

1,303,014

Other costs of services

6,180,389

1,793,584

610,243

8,584,216

2,895,953

11,480,169

TOTAL OPERATING EXPENSES

238,847,188

45,177,060

15,818,202

299,842,450

33,548,996

333,391,446

Notes to the income statement

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Risk Management

Accounting Report

290

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

2022

2021

Zavarovalnica Triglav

Non-life insurance

Life insurance

TOTAL

Non-life insurance

Life insurance

TOTAL

Acquisition costs

33,516,807

11,777,903

45,294,710

24,425,956

9,949,186

34,375,142

Depreciation of operating assets

12,129,485

3,821,246

15,950,731

10,403,546

2,769,727

13,173,273

Labour costs

95,020,103

17,928,520

112,948,623

89,743,630

16,863,839

106,607,469

Wages and salaries

66,509,395

12,570,361

79,079,756

63,300,286

11,908,074

75,208,360

Social security and pension insurance costs

11,237,387

2,160,968

13,398,355

10,704,876

2,074,123

12,778,999

Other labour costs

17,273,321

3,197,191

20,470,512

15,738,468

2,881,642

18,620,110

Costs of services provided by natural persons other than SPs, including related taxes

465,067

48,732

513,799

272,979

36,776

309,755

Other operating costs

36,977,623

9,689,493

46,667,116

31,311,263

9,271,177

40,582,440

Costs of entertainment, advertising, trade shows

7,922,591

1,766,111

9,688,702

6,341,580

2,306,272

8,647,852

Costs of material and energy

4,207,423

1,015,607

5,223,030

2,685,840

757,417

3,443,257

Maintenance costs

5,396,363

1,775,591

7,171,954

6,832,700

1,866,350

8,699,050

Reimbursement of labour-related costs

2,640,081

420,389

3,060,470

2,113,331

313,405

2,426,736

Costs of intellectual and personal services

3,590,468

852,202

4,442,670

2,127,300

627,038

2,754,338

Membership fees and charges

1,898,865

454,282

2,353,147

1,195,811

261,803

1,457,614

Costs of services - transport and communications

1,880,733

902,342

2,783,075

2,074,106

855,881

2,929,987

Costs for insurance premiums

406,798

45,783

452,581

286,638

18,505

305,143

Payment transaction costs and banking services

988,108

342,872

1,330,980

788,435

346,719

1,135,154

Rents

3,536,818

783,213

4,320,031

2,985,344

703,289

3,688,633

Costs of professional training services

846,045

220,286

1,066,331

722,233

173,495

895,728

Other costs of services

3,663,330

1,110,815

4,774,145

3,157,945

1,041,004

4,198,949

TOTAL OPERATING EXPENSES

178,109,085

43,265,894

221,374,979

156,157,374

38,890,705

195,048,079

In addition to costs of salaries, the Company set aside provisions for employee bonuses based on performance results in 2022 in the amount of EUR 16,298,391 (2021: EUR 13,493,729) under other expenses.

Total

costs of salaries at Zavarovalnica Triglav in 2022 amounted to EUR 95,378,148 (2021: EUR 88,702,089).

In addition to employees’ salaries, contributions charged to the employer are taken into account when creating provisions for employee bonuses based on performance results. Total provisions created for 2022

amounted to EUR 18,922,432 (2021: EUR 15,666,219).

Notes to the income statement

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Risk Management

Accounting Report

291

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

4.12.2 Gross operating expenses by nature and function

in EUR

Triglav Group

2022

Cost of contract

acquisition

Claim handling costs

Costs of asset

management

Other operating expenses

Costs of non-insurance

operations

TOTAL

Acquisition costs

79,249,991

Cost of goods sold

7,722

Depreciation of operating assets

10,979,077

2,492,733

470,781

8,003,762

2,578,207

24,524,560

Labour costs

77,494,100

21,422,495

2,984,787

51,353,418

17,683,031

170,937,831

Wages and salaries

53,752,149

14,611,474

2,119,892

33,904,279

12,313,795

116,701,589

Social security and pension insurance costs

11,883,103

3,301,015

421,557

7,921,174

3,312,477

26,839,326

Other labour costs

11,858,848

3,510,006

443,338

9,527,965

2,056,759

27,396,916

Costs of services provided by natural persons other than SPs, including related taxes

424,299

448,609

4,264

567,526

1,444,698

Other operating costs

43,281,821

7,053,117

1,355,595

30,574,136

16,454,061

98,718,730

Costs of entertainment, advertising, trade shows

19,312,797

95,269

83,242

1,066,032

1,658,087

22,215,427

Costs of material and energy

4,842,917

1,254,360

102,319

2,292,865

2,045,029

10,537,490

Maintenance costs

3,739,804

1,064,280

313,518

7,885,789

1,271,332

14,274,723

Reimbursement of labour-related costs

2,972,228

179,182

77,461

838,575

668,904

4,736,350

Costs of intellectual and personal services

1,197,990

1,314,238

254,457

4,374,050

757,594

7,898,329

Membership fees and charges

1,880,421

160,562

19,821

1,450,267

1,035,176

4,546,247

Costs of services - transport and communications

2,813,870

502,847

35,851

2,210,831

126,439

5,689,838

Costs for insurance premiums

389,341

100,207

12,179

599,585

251,511

1,352,823

Payment transaction costs and banking services

592,879

1,395

60,094

1,529,127

4,431,444

6,614,939

Rents

2,346,732

744,230

94,598

2,513,248

753,054

6,451,862

Costs of professional training services

451,079

142,731

133,455

642,346

176,753

1,546,364

Other costs of services

2,741,763

1,493,816

168,600

5,171,421

3,278,739

12,854,338

TOTAL OPERATING EXPENSES

211,429,288

31,416,954

4,815,427

90,498,842

36,723,022

374,883,532

in EUR

Triglav Group

2021

Cost of contract

acquisition

Claim handling costs

Costs of asset

management

Other operating expenses

Costs of non-insurance

operations

TOTAL

Acquisition costs

63,036,819

Cost of goods sold

130,008

Depreciation of operating assets

9,357,628

2,226,555

409,252

6,935,521

2,578,441

21,507,397

Labour costs

74,311,229

20,621,175

2,886,763

45,699,860

15,603,003

159,122,030

Wages and salaries

51,668,280

14,066,086

2,069,015

30,526,148

10,948,224

109,277,753

Social security and pension insurance costs

11,656,992

3,215,161

414,668

7,727,435

2,874,701

25,888,957

Other labour costs

10,985,957

3,339,928

403,080

7,446,277

1,780,078

23,955,320

Costs of services provided by natural persons other than SPs, including related taxes

675,560

366,678

3,827

489,630

1,535,695

Other operating costs

37,529,934

5,371,921

1,098,371

28,821,727

15,237,544

88,059,497

Costs of entertainment, advertising, trade shows

17,450,633

33,977

28,190

1,640,263

1,531,891

20,684,954

Costs of material and energy

3,537,486

814,731

71,368

1,794,936

1,632,672

7,851,193

Maintenance costs

3,757,900

1,071,554

299,955

8,779,845

1,126,083

15,035,337

Reimbursement of labour-related costs

2,437,712

115,755

31,395

374,099

496,101

3,455,062

Costs of intellectual and personal services

855,275

479,533

167,671

3,608,552

862,323

5,973,354

Membership fees and charges

1,215,606

165,946

18,144

1,286,819

793,363

3,479,878

Costs of services - transport and communications

2,813,712

572,972

58,365

1,936,255

125,837

5,507,141

Costs for insurance premiums

282,178

61,115

7,448

463,412

38,535

852,688

Payment transaction costs and banking services

484,061

2,065

93,617

1,296,058

4,921,518

6,797,319

Rents

1,524,895

482,984

38,965

2,902,373

690,172

5,639,389

Costs of professional training services

456,542

120,738

118,511

484,127

123,096

1,303,014

Other costs of services

2,713,934

1,450,551

164,742

4,254,988

2,895,953

11,480,169

TOTAL OPERATING EXPENSES

184,911,170

28,586,329

4,398,213

81,946,738

33,548,996

333,391,446

Notes to the income statement

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in EUR

Zavarovalnica Triglav

2022

Cost of contract acquisition

Claim handling costs

Costs of asset management

Other operating expenses

TOTAL

Acquisition costs

45,294,710

Depreciation of operating assets

9,227,110

2,151,769

391,333

4,180,519

15,950,731

Labour costs

63,018,340

16,205,520

2,418,286

31,306,477

112,948,623

Wages and salaries

45,201,789

11,166,937

1,760,582

20,950,450

79,079,758

Social security and pension insurance costs

7,661,652

1,906,140

303,698

3,526,863

13,398,353

Other labour costs

10,154,899

3,132,443

354,006

6,829,164

20,470,512

Costs of services provided by natural persons other than SPs, including related taxes

52,380

284,883

3,738

172,797

513,798

Other operating costs

24,976,465

4,590,656

1,064,210

16,035,786

46,667,117

Costs of entertainment, advertising, trade shows

9,152,773

58,265

62,647

415,017

9,688,702

Costs of material and energy

2,709,374

999,746

81,887

1,432,023

5,223,030

Maintenance costs

2,756,918

835,553

287,936

3,291,548

7,171,955

Reimbursement of labour-related costs

2,535,280

105,988

52,042

367,160

3,060,470

Costs of intellectual and personal services

901,150

781,159

233,289

2,527,072

4,442,670

Membership fees and charges

1,356,180

139,369

17,402

840,196

2,353,147

Costs of services - transport and communications

1,865,407

393,667

26,660

497,341

2,783,075

Costs for insurance premiums

142,330

60,774

4,768

244,710

452,582

Payment transaction costs and banking services

416,035

355

42,049

872,541

1,330,980

Rents

1,440,021

549,439

80,569

2,250,002

4,320,031

Costs of professional training services

372,390

119,882

131,266

442,794

1,066,332

Other costs of services

1,328,607

546,459

43,695

2,855,382

4,774,143

TOTAL OPERATING EXPENSES

142,569,005

23,232,828

3,877,567

51,695,579

221,374,979

in EUR

Zavarovalnica Triglav

2021

Cost of contract acquisition

Claim handling costs

Costs of asset management

Other operating expenses

TOTAL

Acquisition costs

34,375,142

Depreciation of operating assets

7,631,707

1,868,843

325,483

3,347,240

13,173,273

Labour costs

60,760,502

15,886,968

2,410,361

27,549,638

106,607,469

Wages and salaries

43,726,323

11,012,037

1,765,812

18,704,189

75,208,360

Social security and pension insurance costs

7,375,834

1,863,978

304,483

3,234,705

12,778,999

Other labour costs

9,658,345

3,010,954

340,067

5,610,745

18,620,111

Costs of services provided by natural persons other than SPs, including related taxes

25,294

213,541

1,495

69,425

309,755

Other operating costs

21,475,915

3,151,122

855,399

15,100,004

40,582,440

Costs of entertainment, advertising, trade shows

8,388,109

24,103

19,986

215,654

8,647,852

Costs of material and energy

1,918,228

618,348

55,191

851,489

3,443,257

Maintenance costs

2,812,683

845,921

275,369

4,765,076

8,699,049

Reimbursement of labour-related costs

2,169,023

66,670

24,504

166,540

2,426,736

Costs of intellectual and personal services

658,428

79,107

150,657

1,866,146

2,754,338

Membership fees and charges

559,538

133,389

14,177

750,511

1,457,614

Costs of services - transport and communications

1,872,035

465,125

49,865

542,962

2,929,987

Costs for insurance premiums

56,255

22,958

1,943

223,986

305,142

Payment transaction costs and banking services

366,178

553

75,116

693,307

1,135,154

Rents

736,399

291,058

28,466

2,632,709

3,688,633

Costs of professional training services

361,503

104,083

117,498

312,644

895,728

Other costs of services

1,577,537

499,806

42,627

2,078,980

4,198,949

TOTAL OPERATING EXPENSES

124,268,560

21,120,474

3,592,739

46,066,306

195,048,079

Notes to the income statement

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4.13 Other expenses from insurance operations

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Fee and commission expenses

39,099,418

35,152,667

15,526,041

14,437,986

Expenses from impairment of insurance receivables

and write-offs

1,947,123

2,022,500

632,779

1,284,515

Fire tax

5,652,067

5,013,123

5,043,582

4,600,869

Expenses of preventive activity

4,060,247

3,527,029

3,136,208

2,891,761

Supervisory authority fees

2,363,369

2,014,826

1,162,060

1,058,180

Other net insurance expenses

6,374,359

4,185,795

2,409,698

1,025,186

OTHER EXPENSES FROM INSURANCE OPERATIONS

59,496,583

51,915,940

27,910,368

25,298,497

4.14 Other expenses

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Financial expenses

2,731,227

2,729,286

2,289,560

2,277,892

Interest expenses for bonds issued

2,187,500

Lease interest expenses

497,677

489,303

79,806

65,603

Other ﬁnancing expenses

46,050

52,483

22,254

24,788

Other expenses

68,022,731

55,650,367

24,786,331

20,207,745

Operating expenses of non-insurance companies

36,293,795

32,844,278

Employee and Management Board bonuses

21,110,319

17,862,055

18,922,431

15,666,219

Expenses from impairment of investment property

6,617

4,340

Other investment property expenses

3,453,853

2,162,149

3,999,366

2,725,512

Depreciation of investment property

1,430,563

1,335,886

964,730

967,250

Depreciation of right of use assets

43,320

44,305

43,320

44,305

Loss from investment property disposal

14,518

28,825

1,114

Expenses from reversal of impairment of other receivables

329,285

33,829

18,323

Expenses from disposal of property, plant and equipment

44,233

39,298

37,120

4,549

Expenses from disposal of intangible assets

467,828

Expenses from impairment of real property used for ordinary activities

1,236

Other expenses

5,295,000

827,574

818,250

313,759

TOTAL OTHER EXPENSES

70,753,956

58,379,653

27,075,891

22,485,637

Notes to the income statement

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4.15 Income tax expense

4.15.1 Tax expense in the income statement

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Current tax expense

26,233,787

19,038,574

20,633,936

11,928,064

Deferred tax expense

-1,910,235

640,578

-748,145

345,000

TOTAL TAX EXPENSE IN THE INCOME STATEMENT

24,323,552

19,679,152

19,885,791

12,273,064

4.15.2 Tax expense in other comprehensive income

in EUR

2022

2021

Triglav Group

Before tax

Tax

After tax

Before tax

Tax

After tax

Proﬁt from increase in fair value of available for sale ﬁnancial assets

-267,227,622

46,385,263

-220,842,359

-46,148,956

11,107,513

-35,041,443

Liabilities from insurance contracts with a discretionary participating feature (shadow accounting)

14,249,138

-2,707,336

11,541,802

28,770,746

-5,466,442

23,304,304

Actuarial gains/losses

1,277,288

129,024

Translation differences

-94,294

170,440

TOTAL OTHER COMPREHENSIVE INCOME

-251,795,490

43,677,927

-208,117,563

-17,078,746

5,641,071

-11,437,675

in EUR

2022

2021

Zavarovalnica Triglav

Before tax

Tax

After tax

Before tax

Tax

After tax

Proﬁt from increase in fair value of available-for-sale ﬁnancial assets

-213,111,258

40,839,104

-172,272,154

-38,145,921

11,129,871

-27,016,051

Liabilities from insurance contracts with a discretionary participating feature (shadow accounting)

14,249,138

-2,707,336

11,541,802

28,770,746

-5,466,442

23,304,304

Actuarial gains /losses

1,245,737

164,710

TOTAL OTHER COMPREHENSIVE INCOME

-197,616,383

38,131,768

-159,484,615

-9,210,465

5,663,429

-3,547,036

Notes to the income statement

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4.15.3 Reconciliation between accounting proﬁt and tax expense

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Accounting proﬁt

134,540,230

132,644,845

140,357,864

85,688,613

Income tax rate - tax rate average of several countries

18.41%

17.82%

19.00%

Accounting proﬁt multiplied by tax rate

24,762,510

23,639,583

26,667,994

16,280,836

Tax effect of income deductible for tax purposes

-2,329,470

-3,924,446

-8,105,189

-3,486,988

Tax effect of income added for tax purposes

-4,728

-9,064

43,711

10,614

Tax effect on the reduction in expenses not deductible for tax purposes

5,491,270

3,949,419

5,033,229

1,276,901

Tax relief

-1,831,966

-4,616,918

-2,325,161

-2,245,632

Other tax effects

199,783

-680,649

92,332

TOTAL TAX EXPENSE

26,233,787

19,038,574

20,633,935

11,928,063

Effective tax rate

111

19.50%

14.35%

14.70%

13.92%

In accordance with the Corporate Income Tax Act (ZDDPO-2), the applicable tax rate in Slovenia was 19% in 2022, the same as in the preceding year. In

subsidiaries operating outside Slovenia, tax rates were used as applicable in the country of operation and in compliance with the local legislation. For the

applied tax rates see Section

2.1.4

The Company has no unused tax loss; at the Group level it amounted to EUR 25,026,939 as at 31 December 2022 (compared to EUR 29,372,450 as at

31 December 2021).

111

In the data of the Triglav Group, the average of all countries was taken into account in the corporate income tax rate.

Other information

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5. Other information

5.1 Transition of the application of the new standard

IFRS 17 – Insurance contracts

For annual period beginning after 1 January 2023, IFRS 17 will replace IFRS 4. For the Company

and Group this means signiﬁcant changes in classiﬁcation, measurement and disclosure which are

explained below.

5.1.1 Deﬁnition and classiﬁcation

IFRS 17 establishes principles for recognition, measurement, presentation and disclosure of insurance

contracts issued, reinsurance contracts held and investment contracts with discretionary participating

features.

An insurance contract is deﬁned as a contract under which one party (the insurer) accepts signiﬁcant

insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if

a speciﬁed uncertain future event (the insured event) adversely affects the policyholder.

The key principles of IFRS 17 are that an entity:



identiﬁes insurance contracts as those under which the entity accepts signiﬁcant insurance risk from

another party (the policyholder) by agreeing to compensate the policyholder if a speciﬁed uncertain

future event (the insured event) adversely affects the policyholder;



separates speciﬁed embedded derivatives, distinct investment components and distinct (i.e. non-

insurance) goods or services from insurance contracts;



divides the contracts into groups it will recognize and measure;



recognizes and measures groups of insurance contracts as:



a risk-adjusted present value of the future cash ﬂows (the fulﬁlment cash ﬂows) that incorporates

all available information about the fulﬁlment cash ﬂows in a way that is consistent with observable

market information, and



an amount representing the unearned proﬁt in the group of contracts (the contractual service

margin or CSM).



recognizes proﬁt from a group of insurance contracts over the period the entity provides insurance

and other services. If a group of contracts is expected to be onerous (i.e. loss making) over the

remaining coverage period, an entity recognizes the loss immediately;



presents insurance revenue, insurance service expenses and insurance ﬁnance income or expenses

separately;



discloses information to enable ﬁnancial statement users to assess the effect that contracts within

the scope of IFRS 17 have on an entity’s ﬁnancial position, ﬁnancial performance and cash ﬂows.

The Company and Group do not expect any signiﬁcant changes in the classiﬁcation of the non-life

portfolio, whereas the life portfolio will be subject to signiﬁcant changes. Besides separating distinct

investment components, the classiﬁcation of pension product during the saving phase will change from

insurance contract to ﬁnancial contract according to IFRS 17.7(e). This will result in lower income and

expense in proﬁt and loss statement as well as lower liabilities from insurance contracts. On the other

hand, insurance liabilities and assets from these contracts will be reclassiﬁed to liabilities and assets

from ﬁnancial contracts.

5.1.2 Aggregation

A portfolio of insurance contracts is deﬁned as »insurance contracts subject to similar risks and

managed together«. The level of aggregation is applied by grouping contracts together at initial

recognition, considering all relevant features that are part of a contract, applying the following

characteristics:



similar risk and are managed together (i.e., part of one portfolio of contracts),



split to annual cohorts;



similar proﬁtability, distinguishing at inception contracts that are expected to be onerous from

those that are expected to be proﬁtable.

The requirements of IFRS 17 limit the offsetting of gains on groups of proﬁtable contracts, which are

generally deferred as a CSM, against losses on groups of onerous contracts, which are recognized

immediately. Compared with portfolio level at which the liability adequacy test is performed under IFRS

4, the level of aggregation under IFRS 17 is more granular and is expected to result in more contracts

being identiﬁed as onerous and losses on onerous contracts being recognized sooner.

Other information

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5.1.3 Contract boundaries

The measurement of a group of contracts includes all future cash ﬂows within the boundary of each

contract in the group, determined as follows.

Insurance contracts

Cash ﬂows are within the contract boundary if they arise from substantive rights and obligations that

exist during the reporting period in which the Group can compel the policyholder to pay premiums

or has a substantive obligation to provide services (including insurance coverage and any investment

services). A substantive obligation to provide services ends when:



the Group has the practical ability to reassess the risks of the particular policyholder and can set

a price or level of beneﬁts that fully reﬂects those reassessed risks; or



the Group has the practical ability to reassess the risks of the portfolio that contains the contract

and can set a price or level of beneﬁts that fully reﬂects the risks of that portfolio, and the pricing

of the premiums up to the reassessment date does not take into account risks that relate to periods

after the reassessment date.

The reassessment of risks considers only risks transferred from policyholders to the Group, which may

include both insurance and ﬁnancial risks, but exclude lapse and expense risks.

Reinsurance contracts held

Cash ﬂows are within the contract boundary if they arise from substantive rights and obligations that

exist during the reporting period in which the Group is compelled to pay amounts to the reinsurer or

has a substantive right to receive services from the reinsurer.

A substantive right to receive services from the reinsurer ends when the reinsurer:



has the practical ability to reassess the risks transferred to it and can set a price or level of beneﬁts

that fully reﬂects those reassessed risks; or



has a substantive right to terminate the coverage.

Expected changes with transition to IFRS 17:

The Company and Group do not expect any signiﬁcant changes in terms of contracts boundaries for

non-life business, compared to the IFRS 4 accounting. Some life (pension) contracts withing saving

phase were reclassiﬁed from insurance contract to ﬁnancial contract according to IFRS 17.7(e). The

payment phase is still classiﬁed as insurance contract and consequently the contract boundaries has

been changed..

5.1.4 Measurement

IFRS 17 introduces three possible approaches to policy treatment and its accounting:



General model (also known as Building Block approach – BBA) – this is default model, applicable to

all long-term insurance contracts;



Simpliﬁed approach (also known as Premium Allocation Approach - PAA) – standard allows using

this simpliﬁed model for the measurement of insurance contracts with short coverage (usually

applicable to non-life policies with short coverage);



Variable Fee Approach (VFA) – usually applicable to life participating contracts (unit-linked).

The PAA is permitted if and only if, at the inception of the group of contracts:



the business unit reasonably expects that such simpliﬁcation would produce a measurement of the

liability for remaining coverage (LRC) for the group that would not differ materially from the one that

would be produced applying the requirements for the general model (i.e. the fulﬁlment cash ﬂows

related to future service plus the contractual service margin); or



the coverage period of each contract in the group (including coverage arising from all premiums within

the contract boundary determined at that date) is one year or less.

Insurance contracts with direct participation features are insurance contracts that are substantially

investment-related service contracts under which an entity promises an investment return based on

underlying items (i.e. items that determine some of the amounts payable to a policyholder). Hence, they

are deﬁned as insurance contracts for which:



the contractual terms specify that the policyholder participates in a share of a clearly identiﬁed pool

of underlying items;



the entity expects to pay to the policyholder an amount equal to a substantial share of the fair value

returns on the underlying items; and



the entity expects a substantial proportion of any change in the amounts to be paid to the

policyholder to vary with the change in fair value of the underlying items.

According to the standard, Company and Group will classify its products as presented below.

Life business



In line with the standard, for all long-term traditional life contracts (whole life, term, credit), BBA

method will be used;



For traditional products with proﬁt participation (whole life, dowry, endowments, annuities,

old pensions products) and UL product with a high percentage of premium being invested into

guaranteed fund BBA method will be used based on VFA eligibility test performed;



For unit-linked products with a low percentage of premium being invested into guaranteed fund and

new pensions products VFA method will be used;

Other information

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

Shadow accounting will no longer be applied. Instead OCI option will be used to value the majority

of the impact of changes in economic / ﬁnancial assumptions;



Pension products in saving phase will be reclassiﬁed according to IFRS 17.7(e).

Non-Life business



Most non-life products within Company’s and Group's portfolio provide cover up to one year, hence

as a general rule PAA method shall be applied;



Rare exceptions to this rule cover non-life insurance with longer cover, usually with non-linear

distribution of risk over time, such as:



Insurance of construction and installation projects;



Construction guarantees;



Credit insurance (with long covers);



Financial guarantees;



General liability insurance for buildings / installations / design;



Other miscellaneous contracts with coverage longer than 1 year.

If sufﬁcient justiﬁcation is provided, PAA method will be also applied for contracts longer than one year,

e.g. based on materiality assessment and PAA eligibility testing.

Fronting and other accepted (inward) reinsurance

For fronting policies, measurement methods should be applied in a manner consistent with similar

products within direct insurance business.

Passive (outward) reinsurance



Instead of the BBA method applied to direct insurance business, a modiﬁed BBA approach is imposed

by the Standard, in which instead of a Loss Component, a negative CSM can be recognized;



The choice of the method shall reﬂect characteristic of reinsurance agreement and underlying direct

insurance contract(s);



The requirement to assign a measure (PAA or BBA) may result in a situation, where the reinsurance

contract will be treated in a completely different approach (UoA and measure) than a corresponding

direct insurance contract.

On initial recognition, insurance contracts are measured as the total of:



the fulﬁlment cash ﬂows, which comprise estimates of future cash ﬂows, adjusted to reﬂect the

time value of money and the associated ﬁnancial risks;



a risk adjustment for non-ﬁnancial risk; and



the contractual service margin (CSM).

The cash ﬂows will be discounted and weighted by the estimated probability of that outcome to derive

an expected present value. Discounting is performed by using risk-free yield curves adjusted to reﬂect

the characteristics of the cash ﬂows and the liquidity characteristics of the contracts. Cash ﬂows that

vary based on the returns on any underlying items will be adjusted for the effect of that variability using

risk-neutral measurement techniques and discounted using the risk-free rates as adjusted for illiquidity.

The risk adjustment for non-ﬁnancial risk for a group of contracts, determined separately from the other

estimates, is the compensation that the Company and Group would require for bearing uncertainty

about the amount and timing of the cash ﬂows that arises from non-ﬁnancial risk.

The contractual service margin is a component of the asset or liability for the group of insurance

contracts that represents the surplus of premiums over claims and other expenses expected to be paid

over the life of contracts within the group. The idea of creating the CSM is to recognize proﬁts over

time instead of showing one-off gains at contracts recognition. The CSM is measured as the difference

between expected cash inﬂows less expected cash outﬂows within the contractual boundaries, risk

adjusted and adjusted for the time value of money. IFRS 17 requires the CSM to be measured on initial

recognition of the group of insurance contracts, subsequently adjusted and recognized in proﬁt or loss

over the coverage period. CSM is recognized in both the General Model and the Variable Fee approach.

CSM is not created when using the premium allocation approach.

For PAA contract on initial recognition, the carrying amount of the liability for remaining coverage is

measured at the premiums received on initial recognition minus any insurance acquisition cash ﬂows

at that date. Insurance acquisition cash ﬂows will be expensed when they incurred. Subsequently, the

carrying amount of the liability for remaining coverage is increased by any further premiums received

and decreased by the amount recognised as insurance revenue for services provided. According to the

standard, liability for remaining coverage will not be adjusted to reﬂect the time value of money and

the effect of ﬁnancial risk.

5.1.5 Signiﬁcant judgements and estimates

Future cash ﬂows

Estimates of future cash ﬂows will include all reasonable and supportable information that is available

without undue cost or effort at the reporting date. Updated internal and external historical data will be

used about claims and other experience in order to reﬂect current expectations of future events.

Cash ﬂows within the contract boundary are those that relate directly to the fulﬁlment of the contract,

including those for which the Company or Group has discretion over the amount or timing. These include

Other information

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payments to (or on behalf of) policyholders, insurance acquisition cash ﬂows and other costs that are

incurred in fulﬁlling contracts. Insurance acquisition cash ﬂows and other costs that are incurred in

fulﬁlling contracts comprise both direct costs and an allocation of ﬁxed and variable overheads.

Cash ﬂows attributable to acquisition and other fulﬁlment activities will be allocated to groups of

contracts using methods that are systematic and rational and will be consistently applied to all costs

that have similar characteristics. The Company and Group will generally allocate insurance acquisition

cash ﬂows to groups of contracts based on the total premiums for each group, claims handling costs

based on the number of claims for each group, and maintenance and administration costs based on the

number of in-force contracts in each group.

Risk adjustment

Risk adjustment for non-ﬁnancial risk is the compensation that insurance company requires for bearing

the uncertainty about the amount and timing of the cash ﬂows arising from non-ﬁnancial risk as the

insurance company fulﬁls insurance contracts. Risk adjustment will be calculated using the Value at

Risk method. Risk adjustment is calculated separately for Non-Life and Life business each with relevant

methodology and parameters and also takes into account the entity’s risk aversion.

Risk adjustment for Life business

Risk adjustment (RA) is calculated for liability for incurred claims and liability for remaining coverage (LIC

and LRC).

Risks included in risk adjustment calculations are risks related to mortality, longevity, morbidity,

lapse, expense, mortality catastrophe, health. Operational risks are not included nor any of market risks.

Metric used for RA calculation is cost-of-capital approach with portfolio run-off as a time horizon.

Solvency 2 methodology is leveraged as much as possible: S2 standard formula submodule shocks for

each of the above-mentioned risks deemed to be calibrated to the 99,5 percentile level of conﬁdence

are utilized on IFRS 17 cash-ﬂows to derive corresponding capital requirement (with 1-year time

horizon). Corresponding 1-year capital requirements for later periods until portfolio run-off are derived

via proxies tailored to each risk. Next, capital requirements for each risk are converted into capital

requirement at a lower ﬁxed conﬁdence level for all future periods, aggregated to Life portfolio capital

requirements (via summation allowing for portfolio diversiﬁcation effects by scaling down by calibrated

factor, thus avoiding non-linearity through use of correlations) for each future period. By applying cost-

of-capital rate on those capital requirements 1-year cost-of-capital for each future period is determined.

Finally, these are discounted to arrive at the cost-of-capital at portfolio valuation date, which represents

ﬁnal risk adjustment.

All mentioned quantities are calculated bottom-up, starting with policy level. Since we achieved

linearity across risks (by avoiding correlations), all aggregations (at the accounting unit level and higher)

of needed quantities are done simply via summations and scaling with no subsequent need to allocate

entity level RA top-down.

Resulting run-off conﬁdence level of life business RA is in-line with company’s risk appetite and

appropriately disclosed.

Risk adjustment for Non-Life business

For non-life portfolios the risk adjustment for liability for incurred claims is calculated as the excess of

the value at risk over the best estimate of future cash ﬂows at a conﬁdence level determined by entity.

The calculation is performed at the level of homogenous groups and the diversiﬁcation is valued using

a correlation matrix and allocated back to the groups.

The risk adjustment of liability for remaining coverage is derived from basic solvency capital

requirements of appropriate risks from Solvency II standard formula scaled from 99,5 % to the

predetermined conﬁdence level which coincides with the one used in the calculation of the risk

adjustment for liability for incurred claims. Diversiﬁcation between portfolios for both liabilities is again

determined using an appropriate correlation matrix and allocated back to portfolios.

Risk adjustments for liabilities of reinsurance held treaties are derived from their underlying direct

business and active reinsurance contracts taking into account the speciﬁcs of the risks ceded to

reinsurers and the format of reinsurance held treaty.

Discount rates

In estimation of the present value of future cash ﬂows, discount rates that reﬂect the characteristics

of the cash ﬂows, should be used. When deﬁning the appropriate discount rate, the liquidity

characteristics of insurance contract should also be taken in consideration. Triglav Group will use

bottom-up approach with risk free rate and illiquidity premium. The illiquidity premium is applied to

the risk-free interest rate as a parallel shift to the last liquidity point.

Base risk-free interest rates for the euro are obtained from the EIOPA database according to the

recognition date. These are based on data from interest rate swaps. For the EU countries in which the

Group operates, a volatility adjustment is applied, which is also published by EIOPA, and this represents

a 100% illiquidity premium curve.

The risk-free interest rate term structure for the Bosnia and Herzegovina convertible mark and

the Macedonian denar is calculated based on euro interest rate swaps due to the speciﬁcs of both

currencies. The illiquidity premium is calculated as the difference between the supply and demand of

government bonds of the respective country and euro interest rate swaps.

The basis of risk-free interest rates for the Serbian dinar are liquid government bonds. The illiquidity

premium is calculated based on the difference between the supply and demand of liquid government

bonds and adjusted Slovenian corporate bonds for the Serbian market.

For life business the level of illiquidity of liabilities is determined for each portfolio at least once yearly

through illiquidity investigation which is based on calculation of illiquidity indicators. This is then used

to allocate each policy at initial recognition into illiquidity bucket (50%, 75%, and 100% of full illiquidity

curve), which does not change until policy’s run-off. Resulting curve (discounting and fund growth) is

sum of risk-free rates and corresponding illiquidity premium.

For non-life business all liabilities are discounted using EIOPA’s risk free yield rates with exception of

liabilities relating to annuities stemming from the business. Those cash ﬂows are discounted using

published EIOPA volatility adjustment curve as 100% illiquidity premium curve.

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Contractual service margin or CSM

The contractual service margin (CSM) is a component of the asset or liability for the group of insurance

contracts that represents the surplus of premiums over claims and other expenses expected to be paid

over the life of contracts within the group. The idea of creating the CSM is to recognize proﬁts over

time instead of showing one-off gains at contracts recognition. The CSM is measured as the difference

between expected cash inﬂows less expected cash outﬂows within the contractual boundaries, risk

adjusted and adjusted for the time value of money. IFRS 17 requires the CSM to be measured on initial

recognition of the group of insurance contracts, subsequently adjusted and recognized in proﬁt or loss

over the coverage period.

CSM is recognized in both the General Model and the Variable Fee approach (VFA). CSM is not created

when using the premium allocation approach (PAA).

The contractual service margin at the end of the reporting period represents the proﬁt in the group of

insurance contracts that has not yet been recognized in proﬁt or loss because it relates to the future

service to be provided under the contracts in the Group.

An amount of the contractual service margin for a group of insurance contracts is recognized in proﬁt or

loss in each period to reﬂect the services provided under the group of insurance contracts in that period.

The amount is determined by:



identifying the coverage units in the group. The number of coverage units in a group is the quantity

of coverage provided by the contracts in the group, determined by considering for each contract

the quantity of the beneﬁts provided under a contract and its expected coverage duration. In case

of investment contracts with contracts with DPF, CSM shall be recognized in a systematic way that

reﬂects the transfer of investment services under the contract;



Allocating the contractual service margin at the end of the period (before recognizing any amounts

in proﬁt or loss to reﬂect the services provided in the period) equally to each coverage unit provided

in the current period and expected to be provided in the future;



Recognizing in proﬁt or loss the amount allocated to coverage units provided in the period.

Basis for determining quantity of beneﬁts provided can be found bellow in the table.

Type of insurance

Product type

Basis

Life

Endowment life insurance

Sum insured

Life

Term life

Sum insured

Life

Annuity insurance

Annual annuity

Life

Unit linked insurance

Higher of sum insured, fund value

Life

Whole life insurance

Sum insured

Life

Total and permanent disability

Sum insured

Life

Riders

Sum insured

Non-life

Insurance of construction and installation projects

Passage of time and sum insured

Non-life

Construction guarantees

Passage of time and sum insured

Non-life

Credit insurance (with long covers)

Passage of time and sum insured

Non-life

Financial guarantees

Passage of time and sum insured

Non-life

General liability insurance for buildings / installations / design

Passage of time and sum insured

5.1.6 Presentation and disclosure

IFRS 17 will change substantially the Company’s and Group’s consolidated ﬁnancial statements.

All rights and obligations arising from the portfolio of insurance and reinsurance contracts will be

valued on the basis of expected and actual cash ﬂows and shown in the statement of ﬁnancial position

as an asset or liability from insurance contracts. Receivables from insurance premium, liabilities for

claims, insurance-technical provisions and other insurance-related items will no longer be shown in

separate balance sheet items. Any assets or liabilities recognized for cash ﬂows arising before the

recognition of the related group of contracts (including any assets for insurance acquisition cash ﬂows)

will also be presented in the same line item as the related portfolios of contracts.

Statement of proﬁt and loss will now present the insurance service result, which is divided into

insurance revenue and insurance service expenses and result from reinsurance. Insurance ﬁnance

income or expenses includes the effects of unwinding and changes in the value of underlying items

and interest rates. Change in interest rates can also be shown in the statement of other comprehensive

income if the entity chooses this option.

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Insurance service result

For BBA and VFA method insurance revenue represents services for which the Group expects to receive

consideration. The consideration is divided into consideration for covering the entity costs such as admin

expenses and claims and an allocation of premiums that relate to recovering insurance acquisition cash

ﬂows. The liability for remaining coverage will change according to service provided in the period.

For contracts measured using the PAA, insurance revenue for the period is recognized based on the

amount of expected premium receipts allocated to the period based on the passage of time.

The requirements in IFRS 17 to recognize insurance revenue over the coverage period will have an

impact on the result on long term contracts. The result will be more evenly distributed over the coverage

period especially because different approach in amortizing deferred acquisition costs.

Expenses that relate directly to the fulﬁlment of contracts will be recognized in proﬁt or loss as

insurance service expenses, generally when they are incurred. The Company and Group expect

that most expenses will be attributable to insurance contracts. The minority will be shown as not

attributable costs outside insurance service result.

Signiﬁcant changes will also be due to separation of investment component. This will result in lower

income and expense in comparison with current practice. The Company and Group will identify the

investment component of a contract by determining the amount that it would be required to repay to

the policyholder in all scenarios with commercial substance.

Passive reinsurance will now be presented as net income or expense from reinsurance as separate line

in the statement of proﬁt and loss. Consequently, the revenue and claims will be presented higher than

current practice. Active reinsurance will be presented as direct business.

The Company and Group will choose not to disaggregate changes in the risk adjustment for non-

ﬁnancial risk between the insurance service result and insurance ﬁnance income or expenses. All

changes in the risk adjustment for non-ﬁnancial risk recognized in proﬁt or loss will be included in the

insurance service result.

Insurance ﬁnance income and expense

Under IFRS 17, changes in the carrying amounts of groups of contracts arising from impact of changes

in economic / ﬁnancial assumptions can be disaggregated into the statement of proﬁt and loss or other

comprehensive income to reduce accounting mismatch with investment part under IFRS 9. The Group

needs to deﬁne the disaggregation of portfolio level.

For most of portfolios, the Company and Group will use the option to present the ﬁnancial effect in the

statement of other comprehensive income because most of the investment portfolio under IFRS 9 will

also be classiﬁed as fair value through other comprehensive income. Some unit linked products however

will have the changes presented in the statement of proﬁt and loss because the majority of underlying

assets will be classiﬁed as fair value through proﬁt and loss under IFRS 9.

5.1.7 Estimated impacts of the transition on the application of the

new IFRS 17

Zavarovalnica Triglav will publish the ﬁrst consolidated and separate ﬁnancial statements prepared

using IFRS 17 for the ﬁrst half of 2023. A full retroactive approach will be applied, therefore the data for

comparable periods will also be restated in the interim and annual ﬁnancial statements.

The management assessed the impact of the initial application of IFRS 17 on the consolidated and

separate ﬁnancial statements of Zavarovalnica Triglav as at the transition date, i.e. 1 January 2022.

The information presented below was prepared based on the best estimate and interpretation of the

standard and will be subject to review. Ofﬁcially published ﬁnancial statements may therefore contain

information that will signiﬁcantly differ from the estimate presented below.

Life business

Life business will have signiﬁcant changes in ﬁnancial statements. The Group expects that the proﬁt

recognized over the lifetime of the contracts will not change, but the release pattern will be slower. This

is mainly due to deferred acquisition costs under IFRS 17.

A major change relates to transition from discounting with technical interest rate to market interest

rate. As most of the group companies has opted to choose the other comprehensive option for change

in interest rates, the asset liability management will be more aligned under IFRS 17 versus IFRS 4.

The amount of contractual service margin is signiﬁcantly affected by risk adjustment, which is also

a major change compared to IFRS 4. This reﬂects the uncertainty in timing and in amount of future cash

ﬂows. The introduction of risk adjustment will increase the liability to policyholder and decrease the

equity of the Company and Group.

All three methods of transition (full retrospective, modiﬁed retrospective and fair value) will be used for

transition. For the majority of policies, either modiﬁed retrospective or full retrospective were used and

consequently initial recognition of losses component, recognized in proﬁt and loss, will not be signiﬁcant.

Revenues and claims will be lower due to investment component. As Triglav Group has a signiﬁcant

portfolio with mixed content (insurance and investment), the effects will be also signiﬁcant. As already

mentioned, the overall lifetime earnings are expected to be on the same level, but the timing will be

different in accordance with the release of the contractual service margin.

Non-Life business

Non-Life business will be less affected by IFRS 17 compared to Life business in terms of ﬁnancial

statement. A greater impact is expected on the transition date, when insurance contracts will be

measured for the ﬁrst time using an estimate that is close to the calculated solvency requirements.

Using this method, the estimated liabilities are lower than estimated claims provisions according to

IFRS 4. The reduction of liabilities from insurance contracts will manifest in the increase of the proﬁt

brought forward from previous years. The impacts are presented below.

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Most non-life insurance policies of the Company and the Group (insurance and reinsurance) are

short-term contracts; therefore, in accordance with the option allowed by IFRS 17, a simpliﬁed

approach will be used for the valuation of these contracts, i.e. the premium allocation approach or

PAA. Both the full retrospective approach and the modiﬁed retrospective approach will be used to

restate data retrospectively.

Although the PAA approach is similar to the current accounting treatment of insurance contracts,

the implementation of IFRS 17 will affect the ﬁnancial statements. In accordance with IFRS 17,

when measuring insurance contracts, discount must be applied for claims incurred over one year.

Discounting will reduce the amount of liabilities. In addition, risk adjustment will be introduced, which

will result in a higher liability and lower capital of the Company and the Group. Acquisition costs

will be deferred using a different methodology, due to which associated expenses from insurance

operations will be lower.

Impacts of the transition on the application of the new IFRS 17

The Company and the Group assess that the impacts of the transition on the application of the new

standard IFRS 17 as at 1 January 2022 will be as follows:

in EUR million

Impact on

Impact on other

Impact on net

Triglav Group

retained earnings

comprehensive income

deferred tax liabilities

Life business

19.6

-12.4

-1.3

Non-life business

92.6

-7.5

20.4

Total

112.2

-20

19.2

in EUR million

Impact on

Impact on other

Impact on net

Zavarovalnica Triglav

retained earnings

comprehensive income

deferred tax liabilities

Life business

15.8

-10.9

-1.5

Non-life business

99.5

-7.5

21.6

Total

115.4

-18.4

20.0

The contractual service margin as at 1 January 2022 for the Group is EUR 157 million, and for the

Company EUR 150 million. Risk adjustment as at 1 January 2022 for the Group is EUR 74 million, and

for the Company EUR 50 million.

5.2 Transition of the application of the new

standard IFRS 9 – Financial instruments

IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement and is effective for annual

periods beginning on or after 1 January 2018, with early adoption permitted. However, Triglav as

insurance group has applied the temporary exemption from IFRS 9 for annual periods before 1 January

2023. Consequently, the Company and Group will apply IFRS 9 for the ﬁrst time on 1 January 2023.

Comparative ﬁnancial statement for ﬁnancial year 2022 will also be restated.

The deferral condition is that the carrying amount of liabilities arising from the insurance business is

at least 90% of total carrying amount of liabilities. The fulﬁlment of the conditions was veriﬁed as at

31 December 2015. The calculation is shown in the table below. There have been no changes since 31

December 2015 that would signiﬁcantly impact the fulﬁlment of the conditions, which are described in

detail in Section

2.10

5.2.1 Classiﬁcation

The classiﬁcation of investment under IFRS 9 depends on deﬁned business models of the Company

and Group along with contractual cash ﬂows characteristics. Accordingly, the Company and Group

have three possibilities of classiﬁcation: amortized cost (AC), fair value through other comprehensive

income (FVOCI) and fair value through proﬁt and loss. Compared to the previous categories under IAS

39 the held-to-maturity investments and loans and receivables are merged in amortized cost category,

available for sale are now mainly presented in fair value through other comprehensive income, fair

value through proﬁt and loss does not change.

Financial assets measured at amortized cost

A ﬁnancial asset is measured at amortized cost if it meets both of the following conditions:



The ﬁnancial assets are held for the purpose of collecting cash ﬂows according to the business

model of collecting cash ﬂows



The contractual cash ﬂows represent only payments of principal and interest on the principal

amount outstanding.

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Financial assets measured at fair value through other comprehensive income

A ﬁnancial asset is measured at fair value through other comprehensive income if it meets both of the

following conditions and is not classiﬁed in other categories of measurement:



The ﬁnancial assets are held for the purpose of collecting cash ﬂows and sale according to the

business model of collecting cash ﬂows and sale



The contractual cash ﬂows represent only payments of principal and interest on the principal

amount outstanding.

Under this category, the Company and Group also measure equity instruments (non-monetary) which

are not held for trading and for which the Company and Group irrevocably designate as FVOCI. These are

mostly equity instruments of companies closely linked to the Company’s and Group's business and equity

instruments of companies with a solid dividend yield and an expected long-term growth potential.

Financial assets measured at fair value through proﬁt and loss

If the ﬁnancial asset is not measured at amortized cost or at fair value through other comprehensive

income, it is measured at fair value through proﬁt or loss. This applies to either ﬁnancial assets that

do not pass the cash ﬂow adequacy test (SPPI test) or equity securities that either do not meet the

conditions for measurement at fair value through other comprehensive income or are intended for

trading. Financial assets from other business models, which are managed on a fair value basis or held

for trading, are also measured under fair valuer through proﬁt and loss.

5.2.2 Impairment

IFRS 9 replaces the incurred loss model under IAS 39 with the forward-looking expected credit loss

approach. Expected credit losses are a probability-weighted credit loss estimate (i.e. the present value

of all cash ﬂow losses) in the 12-month period after the reporting date or during the expected lifetime

of the ﬁnancial instrument, depending on the stage into which the ﬁnancial asset is classiﬁed.

The general IFRS9 approach to impairment follows a three stage model. Based on assets credit risk

evolution, a ﬁnancial instrument can migrate from the ﬁrst stage to the third, but it is also possible

to return to the previous group. Movement form Stage 1 to Stage 2 is triggered by signiﬁcant increase

in credit risk, movement to Stage 3 is triggered by objective signs of impairment. The impairment

calculation is based on the expected credit losses.

All ﬁnancial assets (except upon initial recognition of credit-impaired ﬁnancial assets) are classiﬁed

into Stage 1 upon initial recognition, for which 12-month expected credit losses are formed. 12-month

expected credit losses are the portion of lifetime expected credit losses that refer to possible default

events in the next 12 months after the reporting date or in a shorter period if the remaining maturity

of the ﬁnancial asset is less than 1 year. In Stage 1, interest income is recognised at the effective

interest rate applied to the total gross amount of the asset (without reduction for loss allowance of

the created value).

The new method is applied to debt instruments classiﬁed at amortised cost and fair value through

other comprehensive income. It is not used for other debt instruments in other balance sheet

categories (receivables, lease receivables) due to their insigniﬁcance.

Stage 2 includes ﬁnancial assets where there has been a signiﬁcant increase in credit risk compared

to the credit risk since initial recognition of the ﬁnancial asset, but the asset does not show objective

evidence of impairment. Lifetime expected credit losses are created for Stage 2 ﬁnancial assets.

Lifetime expected credit losses are the expected credit losses arising from all possible default events

during the lifetime of the ﬁnancial asset. Based on a qualitative analysis – a comparison of the credit

rating as at the reporting date and the credit rating at initial recognition – the Company determines

whether the risk of default has increased signiﬁcantly since initial recognition and requests a transfer

from initial Stage 1 to a lower stage. In Stage 2, interest income is recognised at the effective interest

rate applied to the total gross value of the asset (without reduction for expected credit losses).

Stage 3 comprises ﬁnancial assets that show objective evidence of impairment. Objective evidence of

impairment includes:



payment default of coupon interest due to inability to pay,



payment default of the principal due to inability to pay,



initiation of insolvency proceedings.

Lifetime expected credit losses are calculated for Stage 3 ﬁnancial assets. Interest income is recognised

using the effective interest rate applied to the net value of the asset (less expected credit losses).

Credit loss is the difference between discounted contractual cash ﬂows and discounted expected cash

ﬂows using the effective interest rate as a discount factor. The main factors for calculating a credit loss

are probability of default, loss given default and exposure at default. The Group will use information

from all available external and internal sources to ensure best estimates for these major factors. The

main source of information will be Bloomberg and rating agencies.

The Company and the Group expect additional loss allowances due to the use of the expected credit

loss model according to IFRS 9. The recognition of additional loss allowances upon adoption of IFRS

9 mainly relates to debt investments measured at fair value through other comprehensive income

(FVOCI) as well as investments at amortised cost. Impairments of assets in the FVOCI group do not have

an impact on total equity because loss allowances will not reduce the (fair value) carrying amount of

the investments. Recognition of impairment losses in proﬁt or loss will result in an equal and opposite

gain in other comprehensive income.

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5.2.3 Impacts of the transition on the application of the new

standard IFRS 9

In accordance with the new requirements, IFRS 9 will affect the classiﬁcation of ﬁnancial instruments as

follows:



the biggest impact will have the reclassiﬁcation of equity instruments from available-for-sale

ﬁnancial assets to ﬁnancial assets measured at fair value through proﬁt or loss (FVTPL);



debt securities and other investments that fail the SPPI test will also be measured at fair value

through proﬁt or loss;



most debt instruments that have been classiﬁed as available-for-sale until now will be classiﬁed as

ﬁnancial assets measured at fair value through other comprehensive income;



held-to-maturity ﬁnancial investments and loans and receivables measured at amortised cost under

IAS 39 will generally also be measured at amortised cost under IFRS 9.

The effect of the transition is as follows:

in EUR million

Triglav Group

FVOCI

FVOCI OPT

FVTPL

TOTAL

AFS

1,884

187

2,138

FVTPL

544

HTM

158

L&R

TOTAL

1,884

737

250

2,938

in EUR million

Zavarovalnica Triglav

FVOCI

FVOCI OPT

FVTPL

TOTAL

AFS

1,397

128

1,589

FVTPL

207

HTM

141

L&R

TOTAL

1,397

341

167

1,969

Most ﬁnancial assets of the Company and the Group are measured at fair value under IAS 39, and

the classiﬁcation under IFRS 9 will not change this guideline. As a result, the reclassiﬁcation has no

signiﬁcant impact on the total equity of the Company and the Group as at 1 January 2022. However, the

allocation between fair value reserve and retained earnings will change, which also means additional

tax liabilities. The Company and the Group assess that the impacts of the transition on the application

of the new IFRS 9 as at 1 January 2022 will be as follows:

in EUR million

Triglav Group

Impact on

retained earnings

Impact on

other comprehensive income

Impact on

net deferred tax liabilities

Impact of transition to IFRS 9

35.3

-39.9

-1.4

in EUR million

Zavarovalnica Triglav

Impact on

retained earnings

Impact on

other comprehensive income

Impact on

net deferred tax liabilities

Impact of transition to IFRS 9

16.4

-16.6

-0.1

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5.3 Fair value measurement

5.3.1 Fair value hierarchy

The tables below show fair values of assets and liabilities classiﬁed according to the fair value hierarchy.

in EUR

Triglav Group

As at 31 December 2022

Carrying amount

Level 1

Level 2

Level 3

Total

Assets - measured at fair value

Equity securities

255,410,148

125,087,874

20,967,782

109,354,492

255,410,148

Debt securities

1,754,703,898

332,204,283

1,422,448,565

51,050

1,754,703,898

Derivative ﬁnancial instruments

Unit-linked insurance assets

567,221,702

551,153,357

15,723,134

345,211

567,221,702

Assets - fair value disclosed

Land and buildings for insurance activities

91,940,998

103,969,858

Land and buildings for investment activities

68,377,495

85,298,690

Debt securities (HTM)

456,469,434

99,167,227

336,921,182

436,088,409

Deposits with banks

96,853,602

95,179,867

Loans given

9,645,347

981,056

8,650,584

9,631,640

Debt securities (L&R)

5,982,438

5,942,477

Liabilities - fair value disclosed

Subordinated bonds

49,522,163

41,978,521

in EUR

Triglav Group

As at 31 December 2021

Carrying amount

Level 1

Level 2

Level 3

Total

Assets - measured at fair value

Equity securities

332,988,233

240,531,858

92,456,375

332,988,233

Debt securities

2,349,026,330

479,980,327

1,869,037,119

8,884

2,349,026,330

Derivative ﬁnancial instruments

20,317

Unit-linked insurance assets

619,617,488

598,678,211

20,635,943

303,334

619,617,488

Assets - fair value disclosed

Land and buildings for insurance activities

95,577,467

105,162,133

Land and buildings for investment activities

75,110,973

94,510,057

Debt securities (HTM)

157,560,733

191,789,261

Deposits with banks

70,472,826

69,641,171

Loans given

8,299,712

8,304,283

Debt securities (L&R)

5,991,639

5,952,000

Liabilities - fair value disclosed

Subordinated bonds

49,471,831

53,749,521

Other information

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Risk Management

Accounting Report

306

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Zavarovalnica Triglav

As at 31 December 2022

Carrying amount

Level 1

Level 2

Level 3

Total

Assets - measured at fair value

Equity securities

152,500,457

53,453,233

99,047,224

152,500,457

Debt securities

1,213,173,999

249,196,986

963,977,013

1,213,173,999

Derivative ﬁnancial instruments

Unit-linked insurance assets

490,618,848

485,427,489

5,191,359

490,618,848

Investments in associates

41,951,871

Assets - fair value disclosed

Land and buildings for insurance activities

58,358,301

67,510,295

Land and buildings for investment activities

43,377,173

58,524,955

Debt securities (HTM)

227,656,974

41,528,453

185,307,843

226,836,296

Deposits with banks

19,499,355

19,116,835

Loans given

6,374,648

6,132,399

Debt securities (L&R)

5,982,438

5,942,477

Liabilities - fair value disclosed

Subordinated bonds

49,522,163

41,978,521

in EUR

Zavarovalnica Triglav

As at 31 December 2021

Knjigovodska vrednost

Nivo 1

Nivo 2

Nivo 3

Total

Assets - measured at fair value

Equity securities

205,590,084

120,508,156

85,081,928

205,590,084

Debt securities

1,589,601,822

356,825,433

1,232,776,388

1,589,601,822

Derivative ﬁnancial instruments

20,317

Unit-linked insurance assets

539,417,972

530,759,767

8,658,205

539,417,972

Investments in associates

41,693,996

Assets - fair value disclosed

Land and buildings for insurance activities

59,018,066

66,748,484

Land and buildings for investment activities

43,840,054

61,386,766

Debt securities (HTM)

140,946,233

173,901,172

Deposits with banks

19,660,793

19,604,272

Loans given

6,869,091

6,579,159

Debt securities (L&R)

5,991,639

5,952,000

Liabilities - fair value disclosed

Subordinated bonds

49,471,831

53,749,521

Other information

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Risk Management

Accounting Report

307

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.3.2 Financial assets classiﬁed into Level 3

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Value as at 1 January

92,768,593

71,939,935

126,775,925

97,319,448

Purchases

10,753,186

30,164,475

10,672,230

33,872,252

Disposals

-3,746,069

-15,202,211

-3,706,781

-15,152,076

Revaluation through proﬁt or loss

1,075,259

483,964

198,921

400,920

Revaluation in other comprehensive income

8,137,188

5,471,529

7,058,800

9,725,896

Transfers from/to other levels

763,753

609,485

Acquisition

-700,404

Foreign exchange differentials

-1,157

1,820

Value as at 31 December

109,750,753

92,768,593

140,999,095

126,775,925

The value of ﬁnancial assets classiﬁed into Level 3 increased in 2022 predominantly due to the payments into alternative

investment funds. The increase is reduced by payments received from alternative investment funds, which represent the bulk of

the “sales” item. The “revaluation in other comprehensive income” item, which has a signiﬁcant impact on the overall increase in

ﬁnancial assets classiﬁed into level 3, is also mainly a result of changes in the value of alternative investment funds.

5.3.3 Sensitivity analysis of non-marketable equity securities

Sensitivity analysis of ﬁnancial assets classiﬁed in Level 3 is disclosed below. The analysis for Zavarovalnica Triglav includes equity

investments in associates. The sensitivity analysis shows how much the fair values of these ﬁnancial assets would increase or

decrease in the case of differently applied assumptions that are not based on observable market data. The sensitivity analysis

considered a median scenario of value estimates.

in EUR

Triglav Group

Zavarovalnica Triglav

31 December 2022

31 December 2021

31 December 2022

31 December 2021

Non-marketable assets (Level 3)

109,750,753

94,532,555

99,047,224

85,081,928

Estimated value deviation-/+

-26,121,887/12,748,545

-23,268,934/13,159,489

-23,899,552/10,599,161

-21,420,123/10,090,535

Equity investment in associates

38,068,059

36,031,346

41,951,871

41,693,996

Estimated value deviation-/+

n/a

-3,606,765/1,123,575

-5,414,335/966,967

With regard to investments valued using model-based valuation techniques, the value deviation is determined in the valuation

process with adjustments made to key assumptions (price of invested capital, growth rate). For non-valued investments, ±15%

of the change in investment value is taken into account in calculating the deviation and asymmetric –25/+10% of the change in

investment value for alternative investment funds.

5.3.4 Reclassiﬁcation of ﬁnancial assets

between levels

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Reclassiﬁcation from

level 1 to level 2

266,222,612

755,181,819

199,015,793

603,687,505

Reclassiﬁcation from

level 2 to level 1

228,412,676

80,144,184

163,736,364

50,588,034

The method of measuring fair value did not change in 2022. Reclassiﬁcations

between levels were a result of market factors. As at the 2022 year-end, some

ﬁnancial assets showed lower liquidity and market depth than at the 2021

year-end, consequently failing to meet the requirements for classiﬁcation

into Level 1. Part of ﬁnancial assets met the conditions for classiﬁcation in

the highest level of the fair value hierarchy, therefore it was reclassiﬁed into

Level 1. Reclassiﬁcation between levels has no impact on fair value.

Other information

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Accounting Report

308

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.4 Additional notes to the cash ﬂow statement

Below is the cash ﬂow statement as required by the Insurance Supervision Agency. Cash ﬂows from

operating activities are prepared using the indirect method. Income and expenses are adjusted for the

effects of non-monetary transactions (impairments, changes in insurance technical provisions, deferred

income and expenses) and for the income and expenses items related to cash ﬂows from investing and

ﬁnancing activities. In additions, changes in receivables and liabilities from operating activities in the

period are taken into account when calculating net cash ﬂows from operating activities.

Cash ﬂows from investing and ﬁnancing activities are disclosed based on actual payments. Cash ﬂows

from ﬁnancing activities include expenses for interest and principal payments for leases.

The consolidated cash ﬂow statement is composed of the sum of the cash ﬂows of all Group companies

and then adjusted for intragroup cash ﬂows.

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES

Income statement items

131,696,364

144,641,397

59,519,111

57,377,294

Net written premium for the period

1,224,570,677

1,187,488,721

645,886,610

606,380,354

Investment income (excluding ﬁnancial income)

9,983,912

22,539,986

9,934,053

9,134,442

Other operating income (excluding revaluation and provisions reductions) and ﬁnancial income from operating receivables

119,761,114

43,258,766

12,381,043

12,143,285

Net claims paid for the period

-779,708,099

-713,359,986

-402,516,445

-373,056,512

Bonuses and discounts paid

-12,794,170

-12,072,221

-11,441,877

-10,603,774

Net operating expenses excluding depreciation costs and change in deferred acquisition costs

-275,291,114

-288,529,978

-147,229,709

-138,213,385

Investment expenses (excluding depreciation and ﬁnancial expenses)

-9,674,193

-8,839,299

-7,298,090

-6,371,339

Other operating expenses excluding depreciation (other than revaluation and excluding the increase in provisions)

-125,677,873

-66,806,018

-29,262,415

-26,027,184

Corporate income tax and other taxes excluded from operating expenses

-19,473,890

-19,038,574

-10,934,058

-16,008,593

Changes in net operating current assets – operating balance sheet items

-46,777,647

-7,283,265

-22,261,880

-3,345,436

Changes in operating receivables from direct insurance operations

-26,704,959

-12,709,036

-24,044,062

-6,113,550

Changes in receivables from reinsurance operations

-5,246,480

5,742,340

-6,665,013

-3,725,245

Changes in other receivables from (re)insurance operations

-3,545,012

424,995

-6,968,820

-1,550,658

Changes in other receivables and assets

-4,500,219

-2,679,343

-12,577,248

1,575,807

Changes in deferred tax assets

-107,165

Changes in inventories

79,986

365,967

-25,791

454,701

Changes in liabilities from direct insurance operations

2,051,092

2,551,991

1,346,807

-436,034

Changes in liabilities from reinsurance operations

9,205,323

-1,363,326

21,536,796

4,854,423

Changes in other operating liabilities

-20,014,916

-9,446,802

1,888,656

Changes in other liabilities (other than unearned premium)

1,897,538

10,472,491

3,246,795

1,595,120

Changes in deferred tax liabilities

-542,244

Net cash from/(used in) operating activities (a + b)

84,918,717

137,358,132

37,257,231

54,031,858

CASH FLOWS FROM INVESTING ACTIVITIES

Cash inﬂows from investing activities

1,060,019,361

1,093,015,888

866,067,369

945,312,942

Cash inﬂows from interest received from investing activities

37,562,212

37,412,752

22,699,669

23,440,425

Cash inﬂows from dividends and proﬁt sharing

6,151,738

5,653,046

37,802,746

12,494,301

Cash inﬂows from disposal of plant, property and equipment

7,995,544

3,515,560

785,630

151,349

Cash inﬂows from disposal of ﬁnancial investments

1,008,309,867

1,046,434,530

804,779,324

909,226,867

– Cash inﬂows from disposal of investments in subsidiaries and other companies

– Other cash inﬂows from disposal of ﬁnancial investments

1,008,309,867

1,046,434,530

804,779,324

909,226,867

Cash outﬂows from investing activities

-1,039,487,097

-1,186,871,319

-806,619,546

-965,578,127

Cash outﬂows for acquisition of intangible assets

-8,627,093

-7,877,065

-5,506,904

-6,931,001

Cash outﬂows for acquisition of property, plant and equipment

-8,981,115

-9,507,447

-5,474,025

-3,365,839

Cash outﬂows for acquisition of ﬁnancial investments

-1,021,878,889

-1,169,486,807

-795,638,617

-955,281,287

– Cash outﬂows for acquisition of investments in subsidiaries and other companies

-35,987

-4,465,325

-57,355,448

-7,039,617

– Other cash outﬂows for acquisition of ﬁnancial investments

-1,021,842,902

-1,165,021,482

-738,283,169

-948,241,670

Net cash from/(used in) investing activities (a + b)

20,532,264

-93,855,431

59,447,823

-20,265,185

CASH FLOWS FROM FINANCING ACTIVITIES

Cash inﬂows from ﬁnancing activities

Cash outﬂows for ﬁnancing activities

-89,334,516

-43,097,819

-87,552,803

-42,157,905

Cash outﬂows for interest paid

-2,625,553

-2,458,714

-2,266,934

-2,343,302

Cash outﬂows for payments of long-term ﬁnancial liabilities

-1,165,822

-1,164,850

Cash outﬂows for payments of short-term ﬁnancial liabilities

-2,656,625

-2,030,685

Cash outﬂows for dividends and proﬁt sharing

-84,052,338

-38,608,420

-84,120,048

-38,649,752

Net cash from/(used in) ﬁnancing activities (a +b)

-89,334,516

-43,097,819

-87,552,803

-42,157,904

Closing balance of cash and cash equivalents

98,461,452

82,321,630

23,065,242

13,912,991

E1.

Net cash ﬂow for the period

16,116,465

404,882

9,152,251

-8,391,231

E2.

Exchange rate differences

23,357

17,084

Opening balance of cash and cash equivalents

82,321,630

81,899,664

13,912,991

22,304,222

Other information

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Accounting Report

309

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.5 Amounts spent on auditors

The audit of the separate and consolidated ﬁnancial statements for 2022 was performed by the audit

ﬁrm Deloitte. The costs incurred in 2022 and related to this auditor are shown in the table below.

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Auditing of the Annual Report

585,014

464,369

152,986

118,706

Other assurance and related services

90,633

75,111

62,708

TOTAL

675,647

539,480

215,694

181,414

5.6 Government grants

The following are government grants received by the Company in the form of:



government grants received as part of aid measures in response to unfavourable developments in

the economy (primarily rising energy prices);



incentives for the employment of speciﬁc categories of workers;



funds obtained through public tenders, both for co-ﬁnancing costs and for the purchase of

speciﬁc assets;



reimbursements of labour costs by the state.

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

Government grants in the framework of aid measures

215,909

194,560

191,008

127,017

State incentives for the employment of speciﬁc categories of

workers

165,222

214,417

158,179

204,921

Funds obtained through public tenders

37,007

29,797

5,337

4,807

Reimbursement of labour costs by the state

2,713,394

2,259,241

2,525,437

2,189,942

Other government grants and assistance

6,929

14,272

TOTAL

3,138,461

2,712,287

2,879,961

2,526,687

The grants related to assets are recognised as income and the remaining grants reduce the costs they

are intended to compensate.

5.7 Related party transactions

Related party transactions are disclosed separately for the Triglav Group and Zavarovalnica Triglav:



transactions with subsidiaries are disclosed only at Company level and include transactions with

entities in which the Company has a dominant inﬂuence (presented in Section

3.5

). At Group level,

these transactions are eliminated in the consolidation processes;



transactions of associates in which the Group and the Company have signiﬁcant inﬂuence are

presented in Section

3.6

;



transactions with shareholders and shareholder-related companies;



transactions with the management which is represented by the members of the Management

Board and the Supervisory Board.

Transactions with subsidiaries and associates and income, expenses, receivables and liabilities arising

from these transactions are shown below.

The largest shareholders of Zavarovalnica Triglav are Zavod za pokojninsko in invalidsko zavarovanje

Slovenije (Pension and Disability Insurance Institute of Slovenia – ZPIZ) and Slovenski državni holding

(Slovenian Sovereign Holding – SDH), which hold a 34.47% and a 28.09% participating interest

respectively. The only material transaction in 2022 with the two largest shareholders was the dividend

payout. The two shareholders received dividends in the total amount of EUR 52,569,255, of which the

ZPIZ received EUR 28,965,189 and SDH EUR 23,604,066.

The shareholder-related companies are those in which SDH has a majority participating interest or

dominant inﬂuence. As at 31 December 2022, there were 19 such companies, with which neither the

Company nor the Group have signiﬁcant transactions.

The related party services are charged at the same prices as those applying to unrelated parties. Pricing

methods include the external or internal comparables method and cost contribution arrangement.

Other information

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Accounting Report

310

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Transactions with subsidiaries

in EUR

31 December 2022

31 December 2021

ASSETS

Stakes and shares

185,360,343

131,924,683

Debt securities and loans given to members of the Group

1,250,984

2,146,807

Right of use assets

750,962

888,293

Insurance premium receivables from policyholders

22,914

10,027

Re-insurance receivables

8,356,949

7,002,697

Receivables for co-insurer's share in claims

5,227

2,630

Receivables for reinsurer's share in claims

11,561,376

6,478,503

Other short-term receivables from insurance operations

55,611

228,795

Short-term receivables from ﬁnancing

28,581

21,531

Other short-term receivables

645,966

752,713

Short-term deferred expenses

30,859

30,732

LIABILITIES

Liabilities to policyholders

17,925

Liabilities to agents and brokers

467,500

419,562

Liabilities to insurances for co-insurance premium

25,353

24,248

Liabilities for reinsurance premiums

16,929,777

10,967,485

Liabilities for shares in claims from re-insurance

5,193,470

5,909,345

Lease liabilities

784,361

915,166

Other short-term liabilities

150,289

174,610

in EUR

2022

2021

INCOME AND EXPENSES

Gross written premium and active reinsurance premium

25,605,181

31,802,130

Outward re-/co-insurance premium (–)

-106,624,787

-81,394,215

Net premium income

-81,019,606

-49,592,085

Re-/co-insurance commission income

26,870,243

17,710,400

Fee and commission income

5,338,448

4,908,456

Other income from insurance operations

1,304,219

1,440,370

Interest income

42,067

177,238

Other insurance income

1,206,281

1,145,554

Income from land and buildings

876,281

707,040

Other income

562,643

573,300

Dividends

32,701,768

8,000,000

Other income from ﬁnancial assets

80,162

2,647

TOTAL INCOME

-12,037,494

-14,927,080

Gross claims settled

11,721,197

9,185,312

Re-/co-insurers' share in gross claims

-30,777,452

-26,491,451

Net claims

-19,056,255

-17,306,139

Expenses for reinsurance premiums

6,490,960

4,833,477

Other ﬁnancial expenses

82,687

20,647

Interest expenses

20,474

20,549

Depreciation of right-of-use assets

120,412

122,001

TOTAL EXPENSES

-12,341,722

-12,309,465

Transactions with associates

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

ASSETS

Stakes and shares

37,810,184

36,031,346

41,951,871

41,693,997

Insurance premium receivables from policyholders

1,937

8,857

1,937

8,693

LIABILITIES

Liabilities to agents and brokers

2,250

7,127

4,446

Other short-term liabilities

1,561

Accrued costs and expenses

450

in EUR

Triglav Group

Zavarovalnica Triglav

2022

2021

2022

2021

INCOME AND EXPENSES

Gross written premium

71,689

91,048

71,689

89,085

Income from dividends and stakes

63,345

TOTAL INCOME

71,689

91,048

135,034

89,085

Gross claims settled

2,567

31,551

2,567

31,551

Acquisition costs

2,396

2,256

Other operating expenses

30,000

TOTAL EXPENSES

34,963

33,807

2,567

31,551

Other information

Business Report

Risk Management

Accounting Report

311

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.8 Members of the Management Board and Supervisory Board

In 2022, the Management Board members received the following remuneration:

in EUR

First and last name

Fixed remuneration –

gross (1)*

Variable remuneration

(bonuses) – gross (2)

Total gross

(3=1+2)

Total remuneration –

net (4)

Insurance premium –

beneﬁts and SVPI (5)**

Other beneﬁts (6)***

Total beneﬁts and SVPI

(7=5+6)

Andrej Slapar

210,826

56,210

267,036

97,866

74,525

8,432

82,957

Uroš Ivanc

200,399

53,399

253,798

96,922

54,270

984

55,254

Tadej Čoroli

200,399

53,399

253,798

95,971

54,270

4,594

58,864

Barbara Smolnikar****

175,697

97,072

272,769

106,144

44,821

4,449

49,270

David Benedek*****

224,360

78,459

302,819

118,174

51,505

6,003

57,508

Marica Makoter

200,399

53,399

253,798

95,007

54,271

4,273

58,544

TOTAL

1,212,080

391,938

1,604,018

610,084

333,662

28,735

362,397

Fixed remuneration includes salary, holiday pay and jubilee beneﬁts.

Insurance premiums include premiums for supplementary pension insurance, accident insurance, liability insurance and other types of insurance.

***

Other beneﬁts include company cars.

****

Barbara Smolnikar served as a Management Board Member until 17 October 2022.

***** David Benedek served as a Management Board Member until 1 December 2022.

The disclosure does not include travel expenses, accommodation costs and daily allowance as, by their nature, they are not considered remuneration of the Management Board.

As at 31 December 2022, Zavarovalnica Triglav had the following liabilities to the Management Board members:

in EUR

Liabilities as at 31 December 2022

First and last name

Deferred variable remuneration (bonuses) –

gross (1)

Fixed remuneration (salary) –

gross and reimbursement (2)

Total liabilities

(3=1+2)

Andrej Slapar

62,870

17,473

80,343

Uroš Ivanc

59,727

16,758

76,485

Tadej Čoroli

59,727

16,969

76,696

Barbara Smolnikar****

16,054

David Benedek*****

12,630

755

13,385

Marica Makoter

59,727

16,599

76,326

TOTAL

270,735

68,554

339,289

The Company’s receivables from the Management Board members relate exclusively to receivables from salary deductions. The amounts of these are negligibly low.

In 2022, Zavarovalnica Triglav paid EUR 19,352,495 in remuneration to employees under an individual agreement (2021: EUR 17,317,917), of which EUR 17,151,231 in gross salaries (2021: EUR 15,534,781) and

EUR 2,201,264 in other remuneration (2021: EUR 1,783,136). The amounts do not include meal and travel allowances.

Other information

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

In 2022, the Supervisory Board members and committee members received the following remuneration:

in EUR

First and last name

Flat-rate remuneration – gross (1)

Attendance fees – gross (2)

Total gross (1+2)

Total net

Travel expenses – gross

Travel expenses – net

Andrej Andoljšek

26,361

2,585

28,946

21,052

2,593

1,886

Branko Bračko

22,125

2,585

24,710

17,972

973

708

Tomaž Benčina

20,625

3,641

24,266

17,649

812

590

Peter Kavčič

22,500

3,905

26,405

19,204

1,941

1,412

Igor Stebernak

18,750

3,465

22,215

14,634

623

410

Jure Valjavec

18,861

3,641

22,502

16,366

329

239

Peter Celar

18,750

3,641

22,391

16,285

757

551

Branko Gorjan

18,750

2,585

21,335

15,517

519

377

Igor Zupan

18,861

3,465

22,326

16,238

519

377

Luka Kumer*

7,500

1,650

9,150

6,655

Mitja Svoljšak*

111

TOTAL

193,194

31,163

224,357

161,653

9,162

6,620

* Zunanji člani v komisijah.

All the above-mentioned remuneration of the members of the Management Board and the Supervisory

Board represents the remuneration received at Zavarovalnica Triglav, d.d. In the other Group companies,

these members did not receive any remuneration.

The criteria for the performance assessment of the Management Board members are proposed

by the Appointment and Remuneration Committee and approved by the Supervisory Board. The

purpose of these criteria is to maximise the objective monitoring of the achievement of annual and

medium-term objectives and to periodically assess the performance of the Management Board

members. The performance criteria are designed to follow the Company’s annual and medium-term

business objectives adopted in the Company’s annual business plans and strategic documents. The

deﬁnition of a speciﬁc objective includes the following: its description, the expected target value,

the assigned weight and the method for measuring or assessing its achievement. The method used

to calculate the performance measures deviations from the set objectives by awarding a bonus for

overperformance and through pay deduction from the basic salary of a Management Board member for

underperformance.

The annual performance bonus is paid in three installments. The ﬁrst half is paid within 30 days of the

Supervisory Board approving the annual report and adopting a resolution on the bonus amount, or,

in the event the annual report is approved at the General Meeting of Shareholders, within 30 days of

the General Meeting of Shareholders approving the annual report and the Supervisory Board adopting

a resolution on the bonus amount. The remaining 40% of the bonus is paid after two years, and 10%

after three years; however, all three payments must be proportionate to the period of the ofﬁce being

held in a particular calendar year.

The Management Board members are entitled to severance pay equalling six times the average monthly

basic salary they received as board members, if they are dismissed for economic and business reasons

and their employment is terminated as a consequence. Severance is paid within one month of dismissal.

in EUR

Triglav Group

Zavarovalnica Triglav

31 Dec. 2022

31 Dec. 2021

31 Dec. 2022

31 Dec. 2021

Outstanding subrogated receivables

59,665,634

63,743,330

50,699,241

54,851,990

Alternative investments

31,038,598

36,317,208

29,329,100

34,145,677

Bonds, guarantees and other sureties issued

750,023

864,880

Contingent assets

4,264,971

5,302,124

2,706,002

2,730,891

Receivables from forward contracts

19,281,915

Contingent liabilities

2,533,810

298,647

Properties under acquisition

8,838

46,862

Assets under management

2,541,641

167,229,892

TOTAL OFF-BALANCE SHEET ITEMS

100,803,515

293,084,859

82,734,343

111,010,473

5.9 Off balance sheet items

Other information

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

5.10 Major legal and arbitration disputes

On 19 August 2013, Zavarovalnica Triglav, d.d. received an action ﬁled by Matjaž Rakovec, in which he

made a request to annul the Supervisory Board’s resolution of 22 May 2013 regarding his dismissal

from the ofﬁce of President of the Management Board and the appointment of Andrej Slapar as

temporary President of the Management Board, to annul the entry of changes referring to the President

of the Management Board into the court register, and to pay compensation amounting to EUR 516,399.

Alternatively, Matjaž Rakovec requested that Zavarovalnica Triglav, d.d. be obliged to reappoint him

President of the Management Board and to recognise uninterrupted performance of his function

of President of Zavarovalnica Triglav’s Management Board, including all the rights arising from the

employment agreement, for the entire period of his unlawful dismissal from the ofﬁce of President of

the Management Board until his reappointment. In 2022, there was a court settlement in which the

plaintiff, Matjaž Rakovec, withdrew his action in its entirety, and Zavarovalnica Triglav, d.d., agreed to

the withdrawal of the action and waived the claim for reimbursement of the costs of the proceedings.

Following the court settlement, Zavarovalnica Triglav, d.d., reversed all provisions for legal proceedings.

5.11 Events after the reporting period

On 16 February 2023, the Croatian Financial Services Supervision Agency (hereinafter: HANFA) issued

a decision to Triglav Osiguranje d.d., Zagreb, based on a review of the part of its business that relates to

risk management when concluding suretyship insurance contracts and their impact on the company’s

ﬁnancial position. In its decision, the HANFA imposed on the company the obligation to carry out

activities to improve the functioning of internal controls in the execution of these transactions and

to record the liabilities arising from the issued guarantee under suretyship insurance. Based on the

measures imposed, the company recorded in its separate ﬁnancial statements for 2022 the maximum

amount of liabilities arising from the realisation of the guarantee and expenses in the amount of

EUR 4,037,212. This business event is also recorded in the Triglav Group’s ﬁnancial statements.

A signiﬁcant event after the reporting period is the appointment of Blaž Jakič as a Management Board

member of Zavarovalnica Triglav d.d. On 17 October 2022, the Supervisory Board adopted a decision

on his appointment as a Management Board member, and on 2 March 2023, he received a decision of

the Slovenian Insurance Supervisory Agency, granting him an authorisation to perform this function in

Zavarovalnica Triglav d.d.

Other information

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Accounting Report

314

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Reporting as required by the Insurance Supervision Agency

112

Assets and liabilities of pension funds created as a guarantee fund

in EUR

31 December 2022

31 December 2021

Statement of ﬁnancial position for PDPZ funds

PDPZ – skupina

PDPZ – zajamčeni

PDPZ – zmerni

PDPZ – drzni

PDPZ – skupina

PDPZ – zajamčeni

PDPZ – zmerni

PDPZ – drzni

ASSETS

234,968,514

188,646,390

23,417,236

22,930,374

249,789,207

209,337,165

20,062,106

20,449,892

Investment property and other real property rights

Investment property

Other real property rights

Financial investments

231,050,533

186,573,718

22,555,975

21,920,840

245,306,210

206,801,643

18,953,886

19,550,681

Measured at amortised cost, of which:

99,647,220

– loans and deposits

– debt securities

99,647,220

Measured at fair value through other comprehensive income, of which:

– debt securities

– equity securities

Measured at fair value through through proﬁt or loss, of which:

131,403,313

86,926,499

22,555,975

21,920,840

245,306,210

206,801,643

18,953,886

19,550,681

– debt securities

74,475,133

68,678,599

5,618,038

178,496

180,910,694

175,170,224

5,543,010

197,460

– equity securities

56,928,180

18,247,899

16,937,937

21,742,344

64,395,516

31,631,419

13,410,877

19,353,221

Receivables

149,589

1,748,766

500,192

919,817

28,662

1,771,999

479,415

686,357

Receivables from fund manager up to guaranteed return

Other receivables

149,589

1,748,766

500,192

919,817

28,662

1,771,999

479,415

686,357

Cash and cash equivalents

3,768,392

323,906

361,069

89,717

4,454,335

763,522

628,804

212,855

Other assets

Off-balance-sheet assets

1,438,547

2,137,172

Financial derivatives

Other off-balance-sheet assets

1,438,547

2,137,172

LIABILITIES

234,968,514

188,646,390

23,417,236

22,930,374

249,789,207

209,337,165

20,062,106

20,449,892

Insurance technical provisions

234,454,625

188,171,802

23,385,516

22,897,307

249,216,841

208,763,416

20,031,760

20,421,665

Mathematical provisions for net paid-in premiums

167,760,434

166,070,634

Mathematical provisions for capital gain on the guarantee fund

20,411,367

42,692,782

– fair value reserve

Insurance provisions for business funds backing unit-linked insurance, of which:

46,282,823

23,385,516

22,897,307

40,453,425

20,031,760

20,421,665

– fair value reserve

Financial liabilities

Operating liabilities

510,569

443,879

30,856

31,611

564,811

501,184

29,462

27,252

Liabilities from acquired securities and other ﬁnancial instruments

Guarantee fund manager liabilities

251,557

194,450

27,298

29,809

261,582

211,915

23,737

25,931

Cash surrender value payments to guarantee fund members

254,789

249,430

3,557

1,802

296,316

289,269

5,725

1,321

Other operating liabilities

4,223

6,914

Other liabilities

3,320

30,708

865

1,455

7,555

72,565

884

975

Off-balance-sheet liabilities

1,438,547

2,137,172

Financial derivatives

Guarantees given

Other off-balance-sheet liabilities

1,438,547

2,137,172

112

The data in the tables are not subject to the auditor’s review.

Other information

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Accounting Report

315

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Statement of ﬁnancial position for funds posted separately

in EUR

31 December 2022

31 December 2021

Assets and liabilities of pension annuity fund

Renta 1

Renta 2

Renta 1

Renta 2

ASSETS

45,145,446

40,026,824

45,048,536

31,703,341

Investment property and ﬁnancial investments

37,977,731

33,450,105

43,735,837

31,375,017

Investment property

Financial investments

Investments in subsidiaries

Investments in associates

Other ﬁnancial investments

37,977,731

33,450,105

43,735,837

31,375,017

Shares and other ﬂoating rate securities and fund coupons

1,709,070

1,980,828

Debt and other ﬁxed return securities

36,268,661

31,741,035

41,755,009

29,394,190

Investment fund shares

Mortgage loans

Other loans

Deposits with banks

Other ﬁnancial investments

Reinsurers’ share of technical provisions

– from unearned premium

– from mathematical provision

– from outstanding claims

– from bonuses and discounts

– from technical provisions for life insurance policy holders who bear investment risk

Receivables

6,520,547

5,743,594

1,226,482

56,325

Receivables from direct insurance

16,491

42,039

– receivables from insurers

16,491

42,039

– receivables from insurance brokers

– other receivables from direct insurance operations

Receivables from re-insurance operations

Other receivables

6,520,547

5,727,102

1,226,482

14,286

Other assets

647,169

833,125

86,217

271,999

Cash and cash equivalents

647,169

833,125

86,217

271,999

Other assets

Short-term deferred assets

Accrued income from interest and rent

Short-term deferred expenses

Other short-term deferred items

LIABILITIES

45,145,446

40,026,824

45,048,536

31,703,341

Fair value reserves

Gross insurance technical provisions

45,126,422

39,878,582

44,891,698

31,650,619

– gross provisions for unearned premiums

– gross mathematical provisions

45,126,422

39,878,582

44,891,698

31,650,619

– gross claim provisions

– gross provisions for bonuses and discounts

Gross insurance technical provisions for unit-linked insurance contracts

Liabilities from reinsurers' investments in reinsurance contracts

Other liabilities

19,024

148,242

156,837

52,722

Liabilities from direct insurance operations

10,464

89,168

78,705

13,896

– liabilities to policy holders

10,079

2,623

13,557

608

– liabilities to agents and brokers

– other liabilities from direct insurance operations

385

86,545

65,148

13,288

Liabilities from co-insurance and re-insurance operations

Other liabilities

8,560

59,074

78,133

38,826

Accruals

Other information

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Accounting Report

316

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Statement of ﬁnancial position for guarantee fund backing unit-linked life insurance

31 December 2022

31 December 2021

ASSETS

454,107,314

502,042,853

Investment property and ﬁnancial investments

446,142,033

500,913,405

Investment property

Financial investments

Investments in subsidiaries

Investments in associates

Other ﬁnancial investments

446,142,033

500,913,405

Shares and other ﬂoating rate securities and fund coupons

446,142,033

496,834,282

Debt and other ﬁxed return securities

4,079,123

Investment fund shares

Mortgage loans

Other loans

Deposits with banks

Other ﬁnancial investments

Reinsurers’ share of technical provisions

– from unearned premium

– from mathematical provision

– from outstanding claims

– from bonuses and discounts

– from technical provisions for life insurance policy holders who bear investment risk

Receivables

4,350

3,476

Receivables from direct insurance

954

944

– receivables from insurers

– receivables from insurance brokers

– other receivables from direct insurance operations

954

944

Receivables from re-insurance operations

Other receivables

3,396

2,532

Other assets

7,960,931

1,125,972

Cash and cash equivalents

7,960,931

1,125,972

Other assets

Short-term deferred assets

Accrued income from interest and rent

Short-term deferred expenses

Other short-term deferred items

LIABILITIES

454,107,314

502,042,853

Fair value reserves

Gross insurance technical provisions

– gross provisions for unearned premiums

– gross mathematical provisions

– gross claim provisions

– gross provisions for bonuses and discounts

Gross insurance technical provisions for unit-linked insurance contracts

449,399,980

499,681,626

Liabilities from reinsurers' investments in reinsurance contracts

Other liabilities

4,707,334

2,361,227

Liabilities from direct insurance operations

63,914

1,614

– liabilities to policy holders

– liabilities to agents and brokers

– other liabilities from direct insurance operations

63,914

1,614

Liabilities from co-insurance and re-insurance operations

Other liabilities

4,643,420

2,359,613

Accruals

Other information

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Income statement of pension funds formed as a guarantee fund

in EUR

2022

2021

Income statement for PDPZ funds

PDPZ – skupina

PDPZ – zajamčeni

PDPZ – zmerni

PDPZ – drzni

PDPZ – skupina

PDPZ – zajamčeni

PDPZ – zmerni

PDPZ – drzni

Financial income

6,561,453

2,532,018

1,588,674

2,440,762

10,917,769

3,519,412

2,740,192

4,658,165

Income from dividends and proﬁt sharing

684,423

87,187

233,215

364,021

533,901

65,775

166,267

301,860

Interest income

2,488,007

2,385,641

93,966

8,400

1,687,331

1,602,748

76,183

8,400

Gains on disposal of ﬁnancial investments

539,845

612

200,758

338,475

1,105,119

31,059

387,862

686,197

Net income from changes in the fair value of investments which are recognised at fair

value through proﬁt or loss

1,414,009

56,124

518,108

839,777

6,159,170

1,819,238

1,590,022

2,749,910

Other ﬁnancial income

1,435,169

2,454

542,627

890,088

1,432,248

593

519,857

911,798

Income from investment property

Rental income from investment property

Gains on disposal of investment property

Net income from changes in the fair value of investments, which are recognised at fair

value through proﬁt or loss

Financial expenses

29,643,902

20,500,892

4,382,113

4,760,897

6,199,098

4,934,565

647,202

617,330

Interest expenses

Losses from disposal of ﬁnancial investments

13,436,628

12,153,946

702,924

579,758

2,028,376

1,647,009

225,218

156,149

Revaluation operating expenses arising from a change in the fair value of ﬁnancial

investment through proﬁt and loss

15,917,708

8,346,946

3,574,149

3,996,613

4,028,107

3,287,556

343,592

396,959

Other ﬁnancial expenses

289,566

105,040

184,526

142,615

78,393

64,222

Expenses from investment property

Expenses from management and rental of investment property

Losses from disposal of investment property

Revaluation operating expenses arising from a change in the fair value of investment

property through proﬁt and loss

Result of investment activities

-23,082,448

-17,968,874

-2,793,439

-2,320,136

4,718,672

-1,415,153

2,092,990

4,040,835

Income from) payments by investment manager for not achieving the guaranteed return

Other income

Other expenses directly charged to the guarantee fund in line with the fund

management rules

2,389,744

1,929,159

237,816

222,768

2,444,631

2,070,910

192,536

181,185

Management commission

2,358,961

1,929,159

221,353

208,449

2,406,807

2,070,910

172,848

163,049

Custodian bank fees

11,605

5,977

5,628

13,436

6,914

6,522

Auditing expenses

865

432

418

209

Information expenses relating to guarantee fund members

2,805

1,403

Brokerage expenses for the purchase and sale of securities

Other expenses (which, according to the management rules, are) directly charged to the

guarantee fund

15,508

8,652

6,856

23,970

12,565

11,404

Other expenses

Net proﬁt intended for the insured

-25,472,193

-19,898,033

-3,031,255

-2,542,904

2,274,041

-3,486,063

1,900,453

3,859,651

Other information

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Accounting Report

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The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Income statement for funds posted separately

in EUR

2022

2021

Income statement of the guarantee fund backing additional pension insurance during the annuity payout period

Renta 1

Renta 2

Renta 1

Renta 2

Transfer of funds from the pension scheme of additional pension insurance

2,775,664

13,270,462

5,929,143

13,773,514

This legal entity

1,450,674

4,749,788

3,835,536

4,820,151

Other insurance company

Other pension companies

1,324,990

8,520,674

2,093,608

8,953,363

Mutual pension fund

Income from investments

3,098,739

1,665,819

1,579,822

203,815

Income from dividends

7,095

Income from other investments

3,072,852

1,657,728

1,455,993

124,729

Income from land and buildings

Interest income

368,951

254,480

304,028

124,729

Other investment income

2,703,902

1,403,249

1,151,965

Income from asset value adjustments

Proﬁt on disposal of investments

18,791

995

123,830

79,085

Claims incurred

3,127,044

4,716,020

3,351,330

3,633,754

Gross claims settled

3,127,044

4,716,020

3,351,330

3,633,754

Change in gross provisions for claims outstanding

Change in other net tehnical provisions (+/–)

234,724

8,227,963

3,500,524

9,702,071

Change of matematical provisions (+/–)

234,724

8,227,963

3,500,524

9,702,071

Change of other net tehnical provisions (+/–)

Expenses included in policies

152,636

704,787

621,641

565,387

Initial expenses

50,562

497,026

69,559

418,447

Collection, administrative expenses

444,160

Costs of claim settlement

102,074

207,762

107,922

146,940

Net operating expenses

185,876

361,479

155,155

281,503

Acquisition costs

169,744

156,369

Change of deferred acquisiton costs (+/–)

Other operating expenses

185,876

191,735

155,155

125,135

Depreciation of assets used in insurance business

16,523

17,820

11,490

9,617

Labour costs

81,816

88,237

70,613

59,103

– wages and salaries

57,179

61,666

49,088

41,086

–

social security and pension insurance costs

9,771

10,538

8,806

7,370

– other labour costs

14,867

16,033

12,719

10,646

Costs of services provided by natural persons other than sole proprietors (costs under work contracts, service contracts

and other relationships), together with duties and charges borne by the company

295

318

167

140

Other operating expenses

87,242

85,360

72,885

56,274

Income from reinsurance commissions and from participation in the positive technical result from reinsurance contract (–)

Expenses from investments

2,359,999

1,287,511

35,470

76,117

Depreciation and amortization of assets not used in operations

Expenses arising from asset management, interest expenses and other ﬁnancial expenses

22,499

29,112

18,812

Revaluation ﬁnancial expenses

719,964

467,612

Loss on disposal of investments

1,640,035

797,400

6,358

57,304

Proﬁt or loss of the guarantee fund, taking into account expenses included in policies

Proﬁt or loss of the guarantee fund, taking into account net operating expenses

-33,241

343,309

466,486

283,884

Other information

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Risk Management

Accounting Report

319

The Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

in EUR

Income statement for guarantee fund backing unit-linked life insurance

2022

2021

Gross written premium

84,314,572

69,868,754

Income from investments

674,252

72,124,822

Income from dividends

5,583

Income from other investments

652,292

67,252,158

Income from land and buildings

Interest income

877

1,835

Other investment income

651,415

67,250,323

– ﬁnancial income from revaluation

651,415

67,250,323

– other ﬁnancial income

Income from asset value adjustments

Proﬁt on disposal of investments

21,961

4,867,081

Expenses from cash surrender value

47,830,664

50,176,608

Ordinary termination

23,132,939

22,057,919

Extraordinary termination

24,697,725

28,118,690

– withdrawal from insurance contract

22,780,809

26,141,740

– cancellation of insurance contract

–

death of the insured person

1,916,916

1,976,950

Change in other net tehnical provisions (+/–)

-50,188,437

78,911,179

Change of matematical provisions (+/–)

-50,188,437

78,911,179

Change of other net tehnical provisions (+/–)

Fund management costs

9,565,443

10,406,903

Entry fees

1,228,897

2,743,858

Exit costs

Management commission

8,336,546

7,663,045

Expenses from investments

77,781,155

2,498,885

Depreciation and amortization of assets not used in operations

Expenses arising from asset management, interest expenses and other ﬁnancial expenses

491

5,075

Revaluation ﬁnancial expenses

73,421,509

2,037,470

Loss on disposal of investments

4,359,155

456,340

Net proﬁt for the period

Glossary of insurance terms

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Appendix:

Glossary of insurance terms

Inward reinsurance

When a reinsurance company assumes from other insurance and reinsurance companies the portion of

the risk that exceeds their retention limits.

Accumulated proﬁt

The legally justiﬁed amount of net proﬁt for the current year, net proﬁt brought forward and reserves

from proﬁt, which in accordance with the decision of the insurance company’s management board is

ﬁrst used to increase reserves (legal reserves, treasury share reserves and treasury shares, and statutory

reserves) and other reserves according to the Supervisory Board’s decision. The remainder, referred to

as accumulated proﬁt, is allocated by the General Meeting of Shareholders to dividends, other reserves

and other purposes, and carried forward to the next year.

Cedent

A party to a

reinsurance contract

who passes a portion of their assumed

risks

reinsurance

The recipient of those risks is typically an

insurance company

. To cede means to pass a portion of

assumed risk to the reinsurer.

Total return on share

The sum of growth in the share price in the accounting period and the dividend yield as at the

reporting date.

Total revenue

Total revenue is composed of gross written insurance, coinsurance and reinsurance written premiums,

other insurance income and other income.

Net earnings per share

The ratio of net proﬁt in the accounting period which refers to the ordinary shareholders of the

controlling company to the weighted average number of ordinary shares less ordinary shares held by

Zavarovalnica Triglav or the Triglav Group members.

Return on equity (ROE)

The ratio of net proﬁt for the period to the average balance of shareholders’ equity in the period.

Return on equity attributable to the owners of the controlling company

The ratio of net proﬁt to the average balance of shareholders’ equity held by the owners of the

controlling company in the accounting period.

Net claims incurred

Comprise gross claims incurred (beneﬁts, claim payments and appraisal costs) less reinsurers’

and coinsurers’ shares of gross claims paid, adjusted for any change in net claims provisions, plus

equalisation scheme expenses for supplementary health insurance.

Net premium income

Comprises gross written premium less written premium ceded to reinsurers and coinsurers, adjusted for

the change in net unearned premium.

Floating stock/free ﬂoat

Shares held by shareholders who own 5% or less of shareholders’ equity.

Economic value distributed

Comprises net claims incurred and other insurance expenses, expenses from ﬁnancial assets, other

expenses, operating expenses, dividend payments, tax expense, community investment (prevention

activities, donations, sponsorships), employee wages, allowances and beneﬁts.

Dividend yield

The ratio of gross dividends per share to price per share on a given day.

Supplemental insurance/rider

Insurance that is underwritten as a supplement to another (precisely deﬁned) insurance and that

cannot be underwritten independently.

Return on investment

Difference between income and expenses from ﬁnancial assets. Income from investments comprises

income from investments in associates and income from investments (interest income, gains on

disposal of investments and other income from investments). Expenses from investments comprise

expenses from investments in associates and expenses from investments (impairment of investments,

losses on the disposal of investments and other expenses from investments). Return on investment

does not include net unrealised gains and losses on unit-linked life insurance assets.

Endowment (for life insurance products with a savings component)

Insured event in which the insurer pays the sum insured, together with bonuses after the insured

survives an agreed insurance period.

Incurred but not reported (IBNR)

Provisions for incurred but not yet reported claims.

Capitalisation

The reduction of sums insured in life insurance with a savings component, which is carried out if the

policyholder stops paying premiums. In addition to standard criteria for setting the premium (gender

and age of the insured), the amount of the sum insured depends primarily on the number of paid in

premiums and the remaining insurance term.

Glossary of insurance terms

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Book value per share

Ratio of stockholders’ equity to the number of outstanding shares on the reporting date.

Capital adequacy ratio

The ratio of available own funds eligible for covering the solvency capital requirement to the solvency

capital requirement.

Combined ratio

The sum of the expense ratio and claims ratio. It shows the proﬁtability of non-life and health insurance

transactions. A value of less than 100% indicates proﬁt from non-life and health insurance transactions,

excluding returns on investment.

Composite (or universal, general) insurance company

An insurance company that conducts non-life and life insurance business.

Gross and net

In the insurance industry, the terms gross and net typically relate to quantities and ratios before and

after the deduction for reinsurance.

Unearned premium

A component of insurance technical provisions that represents the component of gross written

premium that relates to future or subsequent accounting periods.

Claims provisions

Provisions created to cover claims that incurred in the past and were not settled by the end of the

accounting period. Provisions are created for already reported claims, claims not yet reported and/or

under-reported claims.

Gross operating expenses

Gross operating expenses are recognised as original costs by nature.

Own risk and solvency assessment (ORSA)

Own assessment of risks to which the insurance company’s business is exposed, including the risks it

may be exposed to in the future, and an assessment of the appropriateness of available own funds to

cover them.

Gross written premium

Sum of all premiums that the insurance company charges to policyholders following the underwriting

or renewal of policies in the accounting period.

Gross written premium per company employee

Gross written premium in the accounting period divided by the average number of employees at an

insurance company.

Gross claims paid

Beneﬁts and claims calculated for all or a portion of settled claims in the accounting period, including

claim settlement costs.

Expense ratio

Ratio of the sum of operating expenses, expenses for bonuses and discounts and other net insurance

expenses (calculated as the difference between other insurance expenses and other insurance income)

to net non-life and health insurance premium earned.

Surrender

The termination of a life insurance policy that results in the pay-out of the value thereof (saved assets

and mathematical provisions, less the costs incurred by the insurance company).

Average daily turnover in shares

The ratio of the total value of share turnover in the accounting period to the number of trading days in

that period.

Reinsurance

Reinsurance is the insurance of amounts over the internal risk equalisation rate of a given insurance

company with another insurance company registered to provide reinsurance services.

Prevention

The portion of non-life insurance premiums that the insurance company allocates to prevention

activities to mitigate future risks.

Associate

A company in which another entity directly or indirectly holds between 20% and 50% of voting rights,

and thus has a signiﬁcant effect on capital, but does not control that company.

Income from claimed gross subrogation receivables

The amount of subrogation claims that were created in the accounting period as subrogation receivable

based on a ruling of the competent court, an agreement with the person liable to subrogation, or the

payment of beneﬁts with regard to credit insurance.

Risk proﬁle

A risk proﬁle is a quantitative assessment of the risks to which the insurance company is exposed.

In order to adequately identify the risk proﬁle, processes are established, and risk exposure and

measurements are deﬁned for every type of risk for the purpose of assessing the extent thereof.

Deferred acquisition costs (DAC)

Costs that the insurance company incurs in the acquisition of new insurance contracts are deferred

equally for the entire duration of those contracts for accounting purposes. Thus, the one-time cost

incurred when insurance is underwritten is deferred equally over the entire insurance period.

Available own funds

Available own funds are used to cover the solvency capital requirement and represent the surplus of

assets over liabilities, plus subordinated liabilities, taking into account other regulatory, insurer-speciﬁc

adjustments.

Reported but not settled (RBNS)

Provisions for losses incurred that have been reported but not settled (provisions after inventory).

Glossary of insurance terms

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Reserves from proﬁt

Comprise other reserves from proﬁt, legal and statutory reserves, contingency reserves and credit risk

equalisation reserves.

Solvency II

The European Union’s regulatory framework in the area of insurance, which deﬁnes the calculation

of capital adequacy, and the governance of and reporting by insurance companies. The insurance

company’s available own funds must be at least equal to the assessment of assumed risks, as set as out

in the regulatory framework.

Coinsurance

A way to equalise risks, where assumed risks are split or spread among several insurance companies.

The proportion of risk assumed by an individual insurance company may vary and represents the basis

for determining an individual insurance company’s share of the premium and potential loss. Each

insurance company is jointly and severally liable to the insured, i.e. for the full amount of beneﬁts and/

or claims from an insurance contract, irrespective of the proportion of risk it assumes.

Expense ratio – operating expenses from insurance transactions as a proportion of

gross written premium

Ratio of operating expenses from insurance transactions to gross written premium.

Claims ratio

Ratio of the sum of net claims incurred and changes in other insurance technical provisions to net non-

life and health insurance premium income.

Market capitalisation

The value of a company calculated as the product of the closing share price and the number of shares

on the reporting date.

Economic value generated

Comprises net premium income, other insurance income, income from ﬁnancial assets and

other income.

Comprehensive income

Comprehensive income is composed of two elements. The ﬁrst element comprises net proﬁt or

loss for the accounting period from the income statement. The second element comprises other

comprehensive income, which discloses the effects of other income and expense items that are not

recognised in the income statement, but affect the balance of shareholders’ equity, primarily due to

changes in fair value reserve.

Economic value retained

Difference between economic value generated and economic value distributed.

Solvency capital requirement (SCR)

The amount of the insurance company's capital that it needs to remain solvent for at least one year

with a 99.5% probability calculated in accordance with Solvency II. Calculated according to a statutory

standard formula that takes into account all material measurable risks: underwriting, market, credit

and operational risks.

Insurance density (premium per capita)

Ratio of gross written premium to the number of inhabitants of a speciﬁc country.

Insurance penetration

Insurance premium as a proportion of gross domestic product (GDP).

Insurance premium

The amount set out in an insurance contract that the policyholder pays to the insurance company.

Insurance premium covers the payment of current and future claims, the costs of prevention activities

and the insurance company’s operating expenses.

Insurance group

Several related insurance classes treated as a group. The Insurance Act groups insurance classes 1 to 18

in the non-life insurance group and insurance classes 19 to 24 in the life insurance group.

Insurance class

Various insurance types that are grouped in accordance with the Insurance Act based on the main types

of risks they cover. The Insurance Act deﬁnes 24 different insurance classes.

Insurance technical provisions

The insurance company must create the necessary insurance technical provisions in connection with all

insurance services that it provides. They are intended to cover future insurance liabilities and potential

losses due to risks arising from rendered insurance services. They comprise unearned premium, claims

provisions, mathematical provisions, provisions for bonuses and discounts, and other insurance

technical provisions.

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GRI (Global Reporting Initiative) Content Index

Statement of Use

Triglav Group has reported in accordance with the GRI (Global Reporting Initiative) Standards for the period from 1 January 2022 to 31 December 2022

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard(s)

G4: Financial services sector disclosures

GENERAL DISCLOSURES

GRI standard

Disclosure

Section/page

Requirement(s) omitted

Reason and explanation for omission

GRI 2: General Disclosures 2021

The Organization and its reporting practices

2-1

Organizational details

2.7/16, 6.3/53

2-2

Entities included in the organization’s sustainability reporting

2.4/13

2-3

Reporting period, frequency and contact point

2.3/12, 2.4/13

2-4

Restatements of information

2.4/13

2-5

External assurance

The Company has not yet decided to have the

GRI standards externally assured.

Activities and workers

2-6

Activities, value chain and other business relationships

2.1/11, 2.2/11, 2.7/16, 2.7.4/21,

6.3/53, 7.4/59, 12.4.4/131

2-7

Employees

12.4.2.1/117, 119

2-8

Workers who are not employees

12.4.2.1/119

Governance

2-9

Governance structure and composition

5.3/41, 5.4/48

2-10

Nomination and selection of the highest governance body

5.3/41

2-11

Chair of the highest governance body

5.3.2.2/44

2-12

Role of the highest governance body in overseeing the management of impacts

5.3.2.2/44

2-13

Delegation of responsibility for managing impacts

12.1/104

2-14

Role of the highest governance body in sustainability reporting

2.4/13

2-15

Conﬂicts of interest

5.3.3.2/46

2-16

Communication of critical concerns

12.5/132

2-17

Collective knowledge of the highest governance body

5.3.2/43

2-18

Evaluation of the performance of the highest governance body

5.3.2.2/45

2-19

Remuneration policies

5.3.2.2/45

2-20

Process to determine remuneration

5.3.2.2/45

2-21

Annual total compensation ratio

2.3/12, 5.3.2.2/45

Strategy, policies and practices

2-22

Statement on sustainable development strategy

1./9

2-23

Policy commitments

12.4.2.4/123, 12.5/132

2-24

Embedding policy commitments

12.4.2.4/123, 7.11/82, 12.5/132

2-25

Processes to remediate negative impacts

12.4.1.1/115, 12.4.2.4/123, 12.5/132

2-26

Mechanisms for seeking advice and raising concerns

12.5/132

2-27

Compliance with laws and regulations

12.5/132

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GENERAL DISCLOSURES

GRI standard

Disclosure

Section/page

Requirement(s) omitted

Reason and explanation for omission

2-28

Membership associations

12.5/133

Stakeholder engagement

2-29

Approach to stakeholder engagement

6.5/55, 12.2/106, 12.4.2.4/122

2-30

Collective bargaining agreements

12.4.2.1/119

GRI 3: Material Topics 2021

3-1

Process to determine material topics

2.4/13

3-2

List of material topics

2.4/13

ECONOMIC IMPACTS

GRI 201: Economic Performance 2016

3-3

Management of material topics

4.1/35

201-1

Direct economic value generated and distributed

12.4.3/121, 12.4.3.1/125, 12.4.3.2/128

201-2

Financial implications and other risks and opportunities due to climate change

7.2/58

Reporting on ﬁnancial implications of

weather and natural disasters.

201-3

Deﬁned beneﬁt plan obligations and other retirement plans

12.4.2./123

201-4

Financial assistance received from government

12.5/134

GRI 202: Market presence 2016

3-3

Management of material topics

4.2/37

202-2

Proportion of senior management hired from the local community

12.4.2.1/118

GRI 203: Indirect economic impacts 2016

3-3

Management of material topics

12.4.3/124

203-1

Extent of development of signiﬁcant infrastructure investments and services supported

12.4.3/124, 12.4.3.1/125

GRI 204: Procurement practices 2016

3-3

Management of material topics

12.4.4/131

204-1

Percentage of the procurement budget used for local suppliers

12.4.4/131

GRI 205: Anti-corruption 2016

3-3

Management of material topics

12.5/133

205-1

Total number and percentage of operations assessed for risks related to corruption

12.5/133

205-2

Communication and training about anti-corruption policies and procedures

12.5/133

205-3

Conﬁrmed incidents of corruption and actions taken

12.5/133

GRI 206: Anti-competitive behaviour

3-3

Management of material topics

12.5/133

206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

12.5/133

GRI 207: Tax 2019

207-1

Approach to tax

Accounting Report/229

207-2

Tax governance, control, and risk management

Accounting Report/229

207-3

Stakeholder engagement and management of concerns related to tax

Accounting Report/229

207-4

Country-by-country reporting

Accounting Report/206

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GENERAL DISCLOSURES

GRI standard

Disclosure

Section/page

Requirement(s) omitted

Reason and explanation for omission

ENVIRONAMENTAL IMPACTS

GRI 302: Energy 2016

3-3

Management of material topics

12.3.2/107

302-1

Energy consumption within the organization

12.3.2/109

GRI 305: Emissions 2016

3-3

Management of material topics

12.3.2/107

305-1

Direct (Scope 1) GHG emissions

12.3.2/107

305-2

Energy indirect (Scope 2) GHG emissions

12.3.2/107

305-3

Other indirect (Scope 3) GHG emissions

12.3.2/107

GRI 306: Waste 2020

3-3

Management of material topics

12.3.2/107

306-1

Waste generation and signiﬁcant waste-related impacts

12.3.2/110

306-2

Management of signiﬁcant waste-related impacts

12.3.1/107, 12.3.2/110

306-3

Waste generated

12.3.2/110

306-4

Waste diverted from disposal

12.3.2/110

306-5

Waste directed to disposal

12.3.2/110

SOCIAL IMPACTS

GRI 401: Employment 2016

3-3

Management of material topics

12.4.2/117

401-1

New employee hires and employee turnover

12.4.2.1/118

401-2

Beneﬁts which are standard for full-time employees of the organization but are not provided to

temporary or part-time employees

12.4.2.1/119, 12.4.2.4/123

401-3

Parental leave

12.4.2.4/123

The number and share of employees who

were still employed 12 months after parental

leave ended is not reported on.

GRI 402: Labour/management relations 2016

3-3

Management of material topics

12.4.2.4/123

402-1

Minimum notice periods regarding operational changes, including the information whether the

notice period and provisions for consultation and negotiation are speciﬁed in collective agreements

12.4.2.4/123

GRI 403: Occupational Health and Safety 2018

3-3

Management of material topics

12.4.2.3/120

403-1

Occupational health and safety management system

12.4.2.3/120

403-2

Hazard identiﬁcation, risk assessment, and incident investigation

12.4.2.3/120

403-3

Occupational health services

12.4.2.3/120

403-4

Worker participation, consultation, and communication on occupational health and safety

12.4.2.3/120, 121

403-5

Worker training on occupational health and safety

12.4.2.3/120

403-6

Promotion of worker health

12.4.2.3/120

403-7

Prevention and mitigation of occupational health and safety impacts directly linked by business

relationships

12.4.2.3/121

403-8

Workers covered by an occupational health and safety management system

12.4.2.3/120

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GENERAL DISCLOSURES

GRI standard

Disclosure

Section/page

Requirement(s) omitted

Reason and explanation for omission

403-9

Work-related injuries

12.4.2.3/121

403-10

Work-related ill health

12.4.2.3/121

GRI 404: Training and education 2016

3-3

Management of material topics

12.4.2.2/119

404-1

Average hours of training that the organisation’s employees have undertaken during the reporting

period, by gender and employee category

12.4.2.2/120

Training by emloyee category is not reported

on.

Data capture does not include classiﬁcation

by employee category.

404-3

Percentage of employees receiving regular performance and career development reviews by gender

12.4.2.2/120

GRI: 405: Diversity and equal opportunity 2016

3-3

Management of material topics

12.5/132

405-1

Diversity of governance bodies and employees (gender, age group, representatives of minorities,

other indicators of diversity)

5.3.2.2/44, 5.3.3.2/46, 12.4.2.1/118

Reporting on the gender and age structure.

405-2

Ratio of the basic salary and remuneration of women to men for each employee category, by

signiﬁcant locations of operation

12.4.2.1/118

GRI 406: Non-discrimination 2016

3-3

Management of material topics

12.5/132

406-1

Total number of incidents of discrimination during the reporting period and actions taken

12.4.2.4/124

GRI 413: Local communities 2016

3-3

Management of material topics

12.4.3/124

413-1

Percentage of operations with implemented local community engagement

12.4.3/124

Share is not reported.

GRI 414: Supplier Social Assessment 2016

3-3

Management of material topics

12.4.4/131

414-1

New suppliers that were screened using social criteria

12.4.4/131

Share is not reported.

GRI 415: Public policy 2016

3-3

Management of material topics

12.5/133

415-1

Political contributions

12.5/133

GRI 417: Marketing and labelling 2016

3-3

Management of material topics

12.4.1/113

417-1

Requirements for product and service information and labelling

12.4.1/113

417-2

Total number of incidents of non-compliance with regulations and/or voluntary codes concerning

product and service information and labelling

12.4.1/113

417-3

Total number of incidents of non-compliance with regulations and/or voluntary codes concerning

marketing communications, including advertising, promotion, and sponsorships

12.4.1/113

GRI 418 Customer privacy 2016

3-3

Management of material topics

12.5/133

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

12.5/133

Financial Services Sector Disclosures - GRI G4

G4-FS7

Monetary value of products and services designed to deliver a speciﬁc social beneﬁt

12.3.3/111

G4-FS8

Monetary value of products and services designed to deliver a speciﬁc environmental beneﬁt

12.3.3/111

G4-FS14

Initiatives to improve access to ﬁnancial services for disadvantaged people

12.4.1/114

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SASB (Sustainability Accounting Standards Board) Content Index

Insurance

Topic

Accounting metric

Code

Section/Page number

Transparent Information and Fair Advice for

Customers

Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of insurance product related information to new

and returning customers

FN-IN-270a.1

12.4.1/113,

12.4.1.1/115,

12.5/132

Complaints-to-claims ratio

FN-IN-270a.2

12.2/106

Customer retention rate

FN-IN-270a.3

12.4.1.1/115

Description of approach to informing customers about products

FN-IN-270a.4

12.4./113

Incorporation of Environmental, Social,

and Governance Factors in Investment

Management

Total invested assets, by industry and asset class

FN-IN-410a.1

7.9/79, 80, 7.11/82

Description of approach to incorporation of environmental, social, and governance (ESG) factors in investment management processes and strategies

FN-IN-410a.2

12.3.3/112

Policies Designed to Incentivize Responsible

Behavior

Net premiums written related to energy efﬁciency and low carbon technology

FN-IN-410b.1

12.3.3/111

Discussion of products and/or product features that incentivize health, safety, and/or environmentally responsible actions and/or behaviors

FN-IN-410b.2

12.3.3/111

Environmental Risk Exposure

Probable Maximum Loss (PML) of insured products from weather-related natural catastrophes

FN-IN-450a.1

3.2.1.2/173

Total amount of monetary losses attributable to insurance payouts from (1) modeled natural catastrophes and (2) nonmodeled natural catastrophes, by type of event

and geographic segment (net and gross of reinsurance)

FN-IN-450a.2

7.2/58, 3.2.1.2/173

Systemic Risk Management

Exposure to derivative instruments by category

FN-IN-550a.1

3.3.2.4/178

Total fair value of securities lending collateral assets

FN-IN-550a.2

3.3.2.4/178

Description of approach to managing capital and liquidity-related risks associated with systemic non-insurance activities

FN-IN-550a.3

2.1/165, 3.5/183

Asset Management and Custody

Topic

Accounting metric

Code

Section/Page number

Transparent Information and Fair Advice for

Customers

Number and percentage of covered employees with a record of investment-related investigations, consumer-initiated complaints, private civil litigations, or other

regulatory proceedings

FN-AC-270a.1

12.5/132

Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of ﬁnancial product related information to new and

returning customers

FN-AC-270a.2

12.4.1./113

Description of approach to informing customers about products and services

FN-AC-270a.3

12.4.1/113

Employee Diversity and Inclusion

Percentage of gender and racial/ethnic group representation for (1) executive management, (2) non-executive management, (3) professionals, and (4) all other

employees

FN-AC-330a.1

5.3.2.2/44, 5.3.3.2/46,

12.4.2.1/118

Incorporation of Environmental, Social,

and Governance Factors in Investment

Management and Advisory

Amount of assets under management, by asset class, that employ (1) integration of environmental, social, and governance (ESG) issues, (2) sustainability themed

investing, and (3) screening

FN-AC-410a.1

7.9/78

Description of approach to incorporation of environmental, social, and governance (ESG) factors in investment and/or wealth management processes and strategies

FN-AC-410a.2

7.11/82

Description of proxy voting and investee engagement policies and procedures

FN-AC-410a.3

7.11/82

Business Ethics

Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anticompetitive behavior, market manipulation,

malpractice, or other related ﬁnancial industry laws or regulations

FN-AC-510a.1

12.5/132, 133

Description of whistleblower policies and procedures

FN-AC-510a.2

12.5/133

Accounting metric

Code

Section/Page number

Total registered and (2) total unregistered assets under management (AUM)

FN-AC-000.A

7.11/81

Total assets under custody and supervision

FN-AC-000.B

7.11/82

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Sustainable Development Goals (UN SDG) Content Index

The Triglav Group is focused on goals 3, 5, 8, 11, 13.

Goal

Description

Section/Page

By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and ﬁshers, including through secure and equal access to land,

other productive resources and inputs, knowledge, ﬁnancial services, markets and opportunities for value addition and non-farm employment.

12.3.3/111

By 2020, halve the number of global deaths and injuries from road trafﬁc accidents.

12.4.3.1/126

Achieve universal health coverage, including ﬁnancial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all.

11.1.3/98

Achieve gender equality and empower all women and girls

12.4.2.1/118

Ensure access to affordable, reliable, sustainable and modern energy for all

12.3.3/111

Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized

enterprises, including through access to ﬁnancial services.

11.1.3/98

Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.

12.4.2.3/120

Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to ﬁnancial services, including affordable credit, and their integration into value chains and markets.

11.1.2/97

Make cities and human settlements inclusive, safe, resilient and sustainable

12.4.3.1/126

Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

12.1/103

Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

12.3.3/111

By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in order to enhance their capacity to provide beneﬁts that are essential for sustainable development.

12.4.3.1/126

Substantially reduce corruption and bribery in all their forms.

12.5/133

Triglav Group and Zavarovalnica Triglav d.d. Annual Report 2022

Published by: Zavarovalnica Triglav d.d.

Text by: Zavarovalnica Triglav d.d.

Editing, consulting, production by: Studio Kernel d.o.o.

Photographs by: Ciril Jazbec, Andraž Blaznik, Triglav Group archive, Shutterstock, iStock

Ljubljana, March 2023