Zavarovalnica Triglav d.d.

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 2023

MANAGEMENT BOARD:

President:

Andrej Slapar

Members:

Uroš Ivanc

Tadej Čoroli

Marica Makoter

Blaž Jakič

Ljubljana, 12 March 2024

Content

Business Report

Address by the President of the Management Board

Triglav Group and Zavarovalnica Triglav in 2023

Report of the Supervisory Board

Triglav Group strategy and plans

Corporate Governance Statement

The share and shareholders of Zavarovalnica Triglav

Macroeconomic environment and insurance markets

Financial result of the Triglav Group and Zavarovalnica Triglav

Risk Management

10.

Development activities

114

Non-financial statement

119

11.

Sustainable development at the Triglav Group

120

12.

Triglav Group as at 31 December 2023

163

13.

Business network of the Triglav Group

170

Accounting Report

Statement of management

s responsibilities

174

Financial statements

185

Notes to the financial statements

190

Notes to the specific significant items in the financial statements

294

Other information

417

Appendix

Glossary of terms

429

Disclosures under the EU Taxonomy Regulation

435

GRI, SASB and SDG Content Index

439

Credit rating

of the Triglav Group

with a stable

medium-term outlook

"A"

Total revenues in EUR million

Earnings before tax in EUR million

Combined ratio Non-Life and Health of the Triglav Group

Return on equity of the Triglav Group

Total business volume in EUR million

1,594.3

1,780.2

934.8

1,060.7

2022

2023

Triglav Group

Zavarovalnica Triglav

99.7%

101.6%

-10.0

95-100

21.1

1.4

45.6

2022

2023 plan

2023

Triglav Group

Zavarovalnica Triglav

74.6%

76.3%

25.1%

25.3%

2022

2023

Claims ratio

Expense ratio

-0.7%

1.8%

2022

2023

1,279.3

1,425.2

708.0

794.7

2022

2023

Triglav Group

Zavarovalnica Triglav

Address by the President of the Management Board

Dear Shareholders and

Readers

The ramifications of this year's natural disasters, notably the severe hail and wind storms and

the August floods, have led to an increased need to support our policyholders and historically

high claims. Their impact was mitigated thanks to our adequate reinsurance protection. Our

operations were significantly affected by the government regulation of the price of

supplemental health insurance in Slovenia, resulting in losses in this business segment and

reducing the Group's total earnings. We will no longer offer supplemental health insurance in

2024. However, we will continue to develop and sell commercial health insurance products in

the markets of the Adria region, as we believe they have significant long-term potential. Lastly,

inflationary pressures on claims and expenses continued to impact our operations for the second

year running.

In this challenging environment, we demonstrated our flexibility and resilience, which is

bolstered by our robust business model and effective risk management system. We maintained

our leading market position in the region and continued to ensure profitable and safe

operations. This report provides detailed insights into our operations, including year-on-year

comparisons in accordance with the new IFRS. Net earnings of EUR 21 million before tax were

generated, falling short of the planned figure due to the impact of one-off events. However, we

are pleased with the performance of the income side of our business, as double-digit growth

contributed to an increase in both business volume and contractual service margin.

Nevertheless, challenges persisted, with losses in the Health segment, mass CAT claims and

claims inflation resulting in an increase in the claims ratio and subsequently the combined ratio,

which reached 101.6%. Fortunately, the financial markets' favourable conditions allowed us to

achieve a strong investment result, positive other comprehensive income and a strong

performance in asset management.

We successfully ensured the financial stability and adequate capitalisation of the Group, as

confirmed by the high "A" credit ratings we received again, with a stable medium-term outlook.

These ratings, assigned by S&P Global Ratings and AM Best, have been consistently maintained

for the past eight years.

Insurance and asset management

Our total business volume increased by 12% to EUR 1,780 million, with the same growth rate

recorded in gross written premium, amounting to EUR 1,654 million. In Slovenia, where 63% of

the Group's premium is collected, growth stood at 9%, aligning with market trends. In the other

markets of the Adria region, the increase stood at 7%, while in the international market, where

we primarily operate under the principle of free movement of services and conduct active

reinsurance business, growth reached 28%.

The expansion of our business volume was driven by a strategic and comprehensive focus on our

clients, accompanied by appropriate adjustments to pricing policies to account for inflation. The

effects of these adjustments partly resulted in an increase in insurance revenue, with the full

impact expecting to manifest in future financial periods. We also responded to inflationary

pressures by implementing various measures related to claims settlement and the management

of operating expenses.

GRI 2-22.

Benefitting from a favourable financial market environment, we delivered strong performance

in the investment segment and managed clients' assets in mutual funds and via discretionary

mandate services, where the volume of assets under management soared by 29%, driven by net

inflows and favourable market conditions. With a 31% market share, the Group stands as one of

the leading managers of mutual fund assets in Slovenia. In the insurance segment of our

business, we achieved a strong result in the Life and Pension segment. While a positive result

was recorded in the Non-Life segment, the Health segment experienced a loss. The results of

both of these segments were significantly influenced by the aforementioned one-off events.

Moreover, the conservative structure and quality of our investment portfolio, which grew by 4%

to EUR 3,399 million, remained largely unchanged, in line with our investment policies.

Implementation of the dividend policy

Our aim is to ensure that the ZVTG share remains an attractive, secure and stable investment

option for investors. As planned, we implemented our attractive and sustainable dividend policy,

distributing dividends equivalent to 51% of consolidated net earnings for 2022, amounting to

EUR 2.50 gross per share, to our shareholders in 2023. This resulted in a total share return of 8%,

with a dividend yield of 7%.

Strategic focus on development and sustainability

We remain committed to our mission of creating a safer future for our clients, employees and

shareholders. This commitment drives our strategic activities, turning words into action.

Our range of products and services continues to be expanded and upgraded to better serve our

clients and adapt to the unique characteristics of each of the Group's market. We are also

enhancing processes and communication channels with our clients. In 2023, our sales network

was reorganised, accompanied by various activities in support of our digitalisation efforts across

the Group so as to achieve a leaner organisational structure. Clients recognise our efforts and, as

indicated by the NPS, their satisfaction with us is at a high level. We are particularly proud of this

in what was a challenging year due to a considerable increase in the volume of claims as a result

of extreme weather events and adjustments of premium to claims inflation. We recognise that

our success hinges on the dedication of our employees. Therefore, we are pleased to see that

their satisfaction scores affirm their commitment, unity and loyalty. On behalf of the

Management Board, I would like to extend our gratitude to them for their unwavering

dedication.

In both of our strategic activities, we continue to deliver on our strategic sustainability ambitions

and support the transition to a climate-neutral and climate-resilient economy. The Group's

Scope 1 and 2 carbon footprint and electricity consumption was reduced by 6%. By upholding

high standards of corporate governance, we strive to foster a culture of diversity, equality and

inclusion. Women make up 55% of our workforce and 47% of our senior managers. Working

together with the community and various partners, we continue to contribute to a number of

socially and environmentally responsible projects.

Throughout the Group's more than 120-year history, we have stood by our clients through many

difficult times, successfully overcoming a variety of challenges, including those encountered in

2023. Looking to the future, I am confident that we are well prepared for whatever lies ahead.

On behalf of the Management Board and all of the Triglav Group employees, I sincerely thank

you for your trust in us.

Andrej Slapar

President of the Management Board of Zavarovalnica Triglav

Triglav Group and Zavarovalnica Triglav in 2023

The Group's operations were negatively impacted by one-off events, in particular regulated

prices of supplemental health insurance and extreme CAT events.

The Group consistently carried out its strategic activities for further growth and

development and achieved its sustainability-related ambitions.

The Group not only increased its business volume but also maintained its financial strength

and high "A" credit ratings with a stable medium-term outlook.

Its leading position in the insurance sector was strengthened both in Slovenia and the Adria

region.

2.1

Financial highlights of the Triglav Group*

in EUR million

2023

2022

Index

Total business volume

1,780.2

1,594,3

112

Gross written premium

1,653.7

1,479.6

112

Other income

126.5

114.8

110

Total revenue

1,425.2

1,279.3

111

Insurance operating result

-9.4

-12.6

Insurance revenue

1,351.2

1,206.6

112

Claims incurred

1,021.2

767.7

133

Acquisition and administrative costs including non att. costs

363.0

325.1

112

Net reinsurance service result

31.6

-104.5

Net other insurance revenue and expenses

-7.9

-21.9

Net investment result

22.0

-14.3

Investment result

83.6

-88.6

Financial result from insurance contracts

-69.7

82.2

Change in provisions for not achieving the guaranteed yield

8.1

-9.8

Gains/losses and impairments of investments in associates

0.0

1.8

Result from non-insurance operations

8.4

16.9

Earnings before tax

21.1

-10.0

Net earnings

16.3

-7.0

Other comprehensive income

34.7

-50.9

Combined ratio Non-Life and Health

101.6%

99.7%

1.9 p.p.

Claims ratio Non-Life and Health

76.3%

74.6%

1.7 p.p.

Expense ratio Non-Life and Health

25.3%

25.1%

0.2 p.p.

New business margin Life and Pension

14.6%

11.4%

3.2 p.p.

Return on equity

1.8%

-0.7%

2.5 p.p.

Return on financial investments

1.8%

-0.4%

2.2 p.p.

31 December 2023

31 December 2022

Index

Balance sheet total

4,099.0

3,802.3

108

Equity

891.1

897.0

Contractual service margin (CSM)

238.4

186.4

128

Assets under management (AUM)

4,851.4

4,379.8

111

Number of employees

5,318

5,306

100

Number of employees (full-time equivalent)

5,190

5,177

100

* Notes on the effects of the transition to IFRS 17 and IFRS 9 are provided in

Section 2.6 of the Accounting Report

The breakdown of profit or loss in the Business Report (comprising insurance operating result, net investment result, result from non-

insurance operations) differs from that of the statement of profit and loss in the Accounting Report (comprising insurance service result,

investment result, financial result from insurance contracts and other profit or loss categories). This is primarily because the Business Report

also takes into account non-attributable costs, insurance revenue, insurance service expenses and net other insurance revenue and insurance

service expenses in the presentation of the insurance operating result. Meanwhile, the net investment result includes the financial result

from insurance contracts, change in provisions for not achieving the guaranteed yield and gains/losses on and impairments of investments

in associates, in addition to the investment result. Other categories are included in the result from non-insurance operations. For a more

detailed description of the categories shown, see Appendix 1. Glossary of terms.

GRI 2-6.

2.2

Financial highlights of Zavarovalnica Triglav*

in EUR million

2023

2022

Index

Total business volume

1,060.7

934.8

113

Gross written premium

982.8

868.9

113

Other income

78.0

66.0

118

Total revenue

794.7

708.0

112

Insurance operating result

17.6

-20.0

Insurance revenue

775.6

690.2

112

Claims incurred

554.2

406.0

136

Acquisition and administrative costs incl. non att. costs

239.1

212.4

113

Net reinsurance service result

39.4

-75.4

Net other insurance revenue and expenses

-4.3

-16.4

Net investment result

28.0

21.4

131

Investment result

70.1

-81.6

Financial result from insurance contracts

-62.8

77.0

Change in provisions for not achieving the guaranteed yield

4.3

-4.6

Gains/losses and impairments of investments in associates

16.3

30.6

Earnings before tax

45.6

1.4

3,271

Net earnings

38.7

8.9

433

Other comprehensive income

28.4

-36.5

Combine ratio Non-Life

99.2%

101.8%

-2.6 p.p.

Claims ratio Non-Life

70.2%

73.3%

-3.0 p.p.

Expense ratio Non-Life

29.0%

28.5%

0.5 p.p.

New business margin Life and Pension

13.9%

13.2%

0.7 p.p.

Return on equity

5.8%

1.2%

4.6 p.p.

Return on financial investments

2.4%

1.4%

1.0 p.p.

31 December 2023

31 December 2022

Index

Balance sheet total

2,945.4

2,730.8

108

Equity

669.2

658.9

102

Contractual service margin (CSM)

225.4

175.6

128

Number of employees

2,243

100

Number of employees (full-time equivalent)

2,215

2,213

100

* Notes on the effects of the transition to IFRS 17 and IFRS 9 are provided in

Section 2.6 of the Accounting Report

GRI 2-6.

The calculation of indicators and the chosen terms

are explained in the glossary enclosed to the

Annual Report. See page 429.

2.3

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

2023

2022

Index

1. Environmental aspects

Carbon footprint

(tonnes of CO2 equivalent)*

8,131

8,649

Scope 1 and 2 carbon footprint per employee (tonnes of CO2 equivalent)*

1.54

1.63

Electricity consumption (MWh)

10,342

11,015

Share of electricity consumption from renewable sources (%)

61.6

59.0

104

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

118

125

Average daily consumption of office paper per employee**

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

24.8

20.8

119

Assets under management in funds that incorporate sustainability aspects (EUR million)

1,139.0

49.2

2,313

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

262.5

222.9

118

2. Social aspects

Employee satisfaction (ORVI)

3.94

4.00

Average employee age

45.1

44.8

101

Women employees to total employees ratio (%)

55.0

54.7

101

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

42.6

41.2

103

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

12.0

11.6

103

Average number of training hours per employee

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

200,000)

0.38

0.37

101

Client satisfaction of Triglav Group (NPS)***

Number of insurance products and services sold online

105

Number of insurance products promoting prevention

100

Proportion of employees allowed to work from home (%)

110

Number of suppliers checked against ESG criteria

865

419

206

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

8.9

10.2

3. Governance aspects

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

20.0/25.0

25.0/0

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

46.5

45.1

103

Proportion of women in management and supervisory bodies (%)

25.5

23.6

108

Average age of Zavarovalnica Triglav Management Board members

47.8

48.5

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

members)

100

129

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)

111

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

protection policy

YES

Fair business practices (number of fraud cases investigated)

1,771

1,651

107

Internationally renowned audit firm (Big 4)

YES

Period of cooperation with the existing auditor (years)

125

Investor relations when publishing results

YES

Economic value generated (EUR million)

1,642.4

1,318.9

125

Economic value distributed (EUR million)

1,682.9

1,409.9

119

Economic value retained (EUR million)

-40.5

-91.0

* 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

11.2.2.

** Includes A4 and A3 paper consumption for internal purposes.

*** NPS shows the share of promoters who would recommend the Company to their acquaintances and friends 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.

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

GRI 2-21.

GRI 2-3.

2.4

Significant events in 2023

▪

Operating results:

The Group's operations were significantly impacted by negative one-off

events, in particular by changes to supplemental health insurance and extreme CAT events.

In April 2023, the legislative framework for the existing supplemental health insurance

system was changed in Slovenia, which, due to price regulation and other restrictions,

resulted in a negative result of the Health segment (see Section

8.3

Health segment

for more

information).

CAT events in Slovenia and the region, particularly storms, hailstorms and

floods in July and August, resulted in historically high claims for the Group and had a

significant negative impact on the Group's performance (see Section 7.2

Environmental

impact on the Triglav Group’s operations

for more information).

Due to inflationary

pressures, the Group companies not only adjusted premiums and premium rates but also

implemented measures related to claims settlement and cost management. As a result of

these effects, the Group achieved earnings before tax of EUR 21.1 million, lower than

originally planned. See Section

8. Operations of the Triglav Group and Zavarovalnica Triglav

for more information.

▪

Dividend payment:

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 2.50 goss per share or EUR 56.8 million in total, which accounts for 51% of

the Group's consolidated net earnings for 2022 and a 7% dividend yield. See Section

6.4

Dividends and dividend policy

for more information.

▪

The high "A" credit rating affirmed:

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. All

individual elements of the rating are at the same level as last year.

See Section

6.6 Credit

rating of the Triglav Group and Zavarovalnica Triglav

for more information.

▪

Changes in the Management Board and the Supervisory Board of Zavarovalnica Triglav:

Blaž

Jakič began his five-year term of office as a Management Board member of Zavarovalnica

Triglav on 2 March 2023. President of the Management Board Andrej Slapar and

Management Board members Uroš Ivanc and Tadej Čoroli were reappointed for a five-year

term. Their current term of office expires in 2024. Monica Cramer Manhem and Tim

Umberger

were

appointed

new

Supervisory

Board

members,

shareholder

representatives, while Aleš Košiček and Janja Strmljan Čevnja were appointed as new

Supervisory Board members, employee representatives. See Section

5.3 Management bodies

of Zavarovalnica Triglav

for more information.

▪

Sustainable development at the Triglav Group:

As part of its efforts to build on its

sustainable development activities, the Group adopted the overarching Sustainable

Development Policy, Sustainable Investment Policy and Statement on principal adverse

impacts of investment decisions on sustainability factors of Zavarovalnica Triglav d.d. in

accordance with the SFDR. See Section

11.1 Our approach to sustainability

for further

information.

2.5

Financial calendar 2024

Calendar of financial announcements for 2024

Date and time of announcement*

Type of announcement

Quiet period**

Wednesday, 6 March 2024, 8:30

Preliminary key figures for 2023

From Wednesday, 14 February 2024

Friday, 29 March 2024, 8:30

Audited annual report for 2023

From Friday, 15 March 2024

Friday, 26 April 2024

Call notice of the General Meeting of Shareholders to

decide on the distribution of accumulated profit

Wednesday, 22 May 2024, 8:30

January–March 2024 interim financial report

From Wednesday, 8 May 2024

Tuesday, 4 June 2024

General Meeting of Shareholders and announcement of its

resolutions

Thursday, 22 August 2024, 8:30

January–June 2024 interim financial report

From Thursday, 8 August 2024

Wednesday, 20 November 2024, 8:30

January–September 2024 interim financial report

From Wednesday, 6 November 2024

* The planned date and time of announcement may differ from the actual date and time.

** 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.

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

2.6

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. Its key markets are the countries in

the Adria region, as shown below, but the Group also operates in the wider international

environment through partnerships with foreign insurance brokerage and agency companies as

well as with reinsurers.

Strategic activities

GRI 2-1, 2-6.

2.6.1

Triglav Group’s value creation model

2.6.2

Insurance

The Group's largest strategic activity is

insurance

, which includes non-life, health, life and

pension insurance as well as reinsurance.

The Group's insurance business comprises:

▪

Slovenia:

Zavarovalnica

Triglav

d.d.,

Triglav,

Zdravstvena

zavarovalnica

d.d.,

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

▪

outside Slovenia:

seven insurance companies in the Adria region (Croatia, Serbia,

Montenegro, Bosnia and Herzegovina, and North Macedonia), Zavarovalnica Triglav's branch

in Greece (under the FOE principle) and business partnerships under the principle of free

movement of services (FOS).

Position in the regional insurance market

The Triglav Group consolidated its dominant market position in

the Adria region

(Slovenia,

Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia). In 2022, it

increased its market share by 0.1 percentage point to 21.7%.

The market share of insurance groups and insurers in the Adria region in 2022 and 2021 (%)*

* Data for 2023 not yet available

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

The parent company is the leader among the insurers in

South-East Europe

(Albania, Bulgaria,

Bosnia and Herzegovina, Montenegro, Croatia, Moldova, Romania, North Macedonia, Slovenia

and Serbia). Eight insurance companies of the Triglav Group and 12 Slovenian insurers (three

Slovenian insurers are among the top five) rank among the top 100 insurers in South-East Europe

in terms of gross written premium. The Romanian insurers Groupama Asigurari (ranked seventh

in the previous year) and Allianz – Tiriac Asigurari (ranked fifth in the previous year) ranked

second and third thanks to the high premium growth. All 100 insurers collected a total of EUR

10.6 billion in written premium (9% more than the previous year).

2.2%

3.4%

4.0%

4.9%

5.3%

6.6%

7.7%

8.0%

8.3%

13.2%

21.7%

2.2%

3.0%

3.4%

4.1%

4.7%

5.4%

6.5%

7.7%

8.1%

8.3%

13.5%

21.6%

Modra zavarovalnica

Allianz

Uniqa

Grawe

Dunav

Vzajemna

VIG

Croatia Group

Agram

Sava insurance Group

Generali

Triglav Group

2021

2022

The largest insurers in South-East Europe by written premium in 2022 (in EUR million)

Source: SeeNews 2023

2.6.3

Asset management

in the Group is carried out by insurance and pension companies, as well as

investment fund and investor asset management companies. It comprises the management of

own insurance portfolios (assets backing liabilities and guarantee funds), saving of clients

through the Group's life and pension insurance companies, the management of alternative

investments by Trigal and the management of clients' assets in mutual funds and discretionary

mandates via asset management companies.

203.9

204.2

212 .4

228.2

231.9

232.0

301.3

339.2

412.1

428.4

463.1

480.8

581.9

601.1

868.9

Euroherc Osiguranje d.d.

Triglav, Zdravstvena zavarovalnica d.d.

Generali Osiguranje Srbija AD

Lev Ins AD

Euroins AD

Asirom VIG SA

Dunav Osiguranje AD

Vzajemna Zdravstvena zavarovalnica d.v.z.

Croatia Osiguranje d.d.

Omniasig VIG SA

Zavarovalnica Sava d.d.

Generali zavarovalnica d.d.

Allianz

- Tiriac Asigurari SA

Groupama Asigurari SA

Zavarovalnica Triglav d.d.

2.6.4

Composition of the Triglav Group

As at 31 December 2023, the Triglav Group comprised 54 companies: the parent company, 30 subsidiaries, 13 associates and 10 joint ventures.

The Triglav Group members and their participating interests as at 31 December 2023

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

2.1.4 of the Accounting Report

2.7

Management of Zavarovalnica Triglav

The Management Board of Zavarovalnica Triglav comprises:

▪

Andrej Slapar, President

The period from the first appointment to the end of the current term of office: 2013–2029

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: 2014–2029

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: 2014–2029

Employed at the Triglav Group: from 2001

▪

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

▪

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.

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 2023

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 2023

In 2023, 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.

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 2023 (hereinafter: the report) and its Opinion on the Annual

Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2023.

The findings are based on the results of the supervision of operations of Zavarovalnica Triglav

d.d. (hereinafter: the Company, the controlling company or the parent company) in 2023 and on

the verification of the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d.

for 2023, including the report of the non-life insurance actuarial function holder and the life

insurance actuarial function holder for 2023.

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

Internal Audit Department in 2023 and the Annual Internal Audit Report of the Internal Audit

Department of Zavarovalnica Triglav d.d. for 2023.

GENERAL INFORMATION

The Supervisory Board and its committees in 2023

The composition of the Supervisory Board in 2023 is described in Section

5. Corporate

Governance Statement (Supervisory Board) of the Business Report.

In 2023, the Supervisory Board

held ten 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 2023 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 2023) of the

Business Report.

Audit Committee

In 2023, the Audit Committee held seven 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 2022 and the 2023 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 2022 and the Solvency and Financial Condition Report of the Triglav Group as at

31 December 2022, 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

2024 and guidelines for the 2025–2027 period;

▪

discussed the findings of the Slovenian Insurance Supervision Agency and other supervisory

bodies in supervision procedures under the Audit Committee's responsibility 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 2023 and the auditor's

report following the pre-audit of Zavarovalnica Triglav d.d. for 2023;

▪

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

Department

Zavarovalnica

Triglav

d.d.

and

the

implementation

plan

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 2022;

▪

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 2022;

▪

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

▪

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

▪

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

auditing in the Triglav Group;

▪

took note of the extraordinary termination procedures of employment agreements for

employees at the Internal Audit Department of Zavarovalnica Triglav d.d.

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 ten meetings in 2023. 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;

▪

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 2023 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;

▪

approving the proposed amendments to the Methodology for determining the variable

remuneration and decreasing base salary of Management Board members in 2024 and

setting the targets for the part of the salary for the overall performance of the Management

Board for the year;

▪

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. and the Remuneration Policy of

Zavarovalnica Triglav d.d.;

▪

reviewing the additional training programme for the Supervisory Board members in 2023,

the proposal for the re-election of the President of the Management Board and considering

the President of the Management Board's proposal for the re-election of Management Board

members Uroš Ivanc and Tadej Čoroli.

Strategy Committee

The Strategy Committee, which held two meetings in 2023, 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 2024.

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 2023 notified the

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

Committee then held five meetings in 2023 and proposed to the Supervisory Board to appoint

two candidates for Supervisory Board members – shareholder representatives: Tim Umberger

and Monica Cramer Manhem.

The Nomination Committee was again established on 29 November 2023 with the aim of

carrying out the nomination procedure to appoint a candidate for Supervisory Board member –

shareholder representative to replace Igor Stebernak, whose term of office will expire on 3 June

2024.

WORK OF THE SUPERVISORY BOARD AND SCOPE OF SUPERVISION OF THE COMPANY'S

OPERATIONS IN 2023

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 2023 are based on the

supervision of the Company’s and the Group’s operations performed by the Supervisory Board

in 2023, acting within its powers. The Supervisory Board held eight sessions in 2023.

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 2023 the Supervisory Board:

▪

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

and the Triglav Group for 2022 and the annual capital adequacy as at 31 December 2022

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

2022, 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 2022 and the

Opinion of the Supervisory Board of Zavarovalnica Triglav d.d. on the Annual Internal Audit

Report for 2022 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 2023, from 1 January to 30 June

2023 and from 1 January to 30 September 2023;

▪

discussed the Annual Internal Audit Report of the Internal Audit Department for 2022;

▪

approved the Triglav Group’s business policy and business plan for 2024 and took note of

the key findings of ORSA;

▪

approved the Internal Audit Department’s work plan for 2024 and its guidelines for 2025–

2027;

▪

proposed to the 48th General Meeting of Shareholders of Zavarovalnica Triglav d.d. to

grant a discharge to the Management Board for 2022, submitted a proposal regarding the

payment of accumulated profit, presented the remuneration policy and the remuneration

report for 2022, and confirmed taking note of the letters of resignation and the

appointment of Zavarovalnica Triglav d.d.'s Supervisory Board members;

▪

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.;

▪

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 2023 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 2022 and its work plan for

2023;

▪

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 2022;

▪

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 2023:

▪

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;

▪

carrying out a subsequent fit and proper assessment of the appointed Supervisory Board

members – employee representatives and taking measures to manage conflicts of interest;

▪

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

the Management Board of Zavarovalnica Triglav d.d. for 2022 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 2023;

▪

giving consent to the capital increase of Triglav, Zdravstvena zavarovalnica d.d.;

▪

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

▪

reviewing the proposal for the re-election of the President of the Management Board and

the President of the Management Board's proposal for the re-election of Management

Board members Uroš Ivanc and Tadej Čoroli; establishing the Nomination Committee to

carry out the nomination procedure in 2024 due to the expiry of the term of office of

Supervisory Board member Igor Stebernak;

▪

adopting the labour costs plan of the Supervisory Board for 2024, the financial calendar

and the timetable for the meetings of the Supervisory Board and its committees in 2024;

▪

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 4.4 Related party transactions of the

Accounting 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 379,050 in 2023.

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 declared themselves independent in accordance with the

Slovenian Corporate Governance Code criteria (all statements of independence are published on

the Company's website). In 2023, 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.

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. A fit and proper assessment

was carried out before new Supervisory Board members – shareholder representatives took

office and subsequently after the Works Council appointed new Supervisory Board members –

employee representatives; Vinko Letnar was found not to meet the fit and proper requirements

for a Supervisory Board member. 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 2023 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 2023 were successful.

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 2023 was

submitted to the Supervisory Board, which took note of it at its session on 28 March 2024. The

report contains an overview of the implementation of the Internal Audit Department's

(hereinafter: IAD) planned activities in 2023 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 2023, the Supervisory Board is of

the opinion that the IAD operated in line with its work plan for 2023, 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 2023.

FINDINGS OF THE SUPERVISORY BOARD REGARDING THE OPERATIONS OF ZAVAROVALNICA

TRIGLAV IN 2023

Based on its monitoring and supervision of the Company's operations in 2023 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 demonstrated its business

resilience to regulatory changes and major CAT events, and responded swiftly and efficiently to

changing circumstances.

The Group generated EUR 21.1 million in consolidated earnings before tax and EUR 16.3 million

in consolidated net earnings. The parent company's net earnings amounted to EUR 38.7 million.

The Group's total revenue increased by 11% and amounted to EUR 1,425.2 million.

The Group's total business volume increased by 12% to EUR 1,780.2 million. The Group's

insurance companies generated insurance, coinsurance and reinsurance premiums of EUR

1,653.7 million in 2023 (index 112), of which EUR 982.8 million (index 113) was earned by the

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

where the Group operates, except for Croatia's market.

The Group's consolidated operating expenses, including other attributable insurance service

expenses, increased by 12% year-on-year to EUR 429.0 million.

The Group's total equity amounted to EUR 891.1 million as at 31 December 2023 and was 1%

lower year-on-year. Return on equity stood at 1.8%.

The Group's financial stability, high capital adequacy and high profitability in 2023 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 2023,

▪

Report of the life insurance actuarial function holder for 2023,

▪

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

for 2023.

The Supervisory Board has no objection to the aforementioned reports.

ANNUAL REPORT

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

Zavarovalnica Triglav d.d. for 2023 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 2023 was audited by the audit firm Deloitte revizija

d.o.o., Ljubljana, which on 12 March 2024 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 2023. 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 2023, 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 2023, 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 2023.

At its session, the Supervisory Board also discussed the Remuneration Report for 2023, 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.

PROPOSAL FOR THE DISTRIBUTION OF ACCUMULATED PROFIT

At its 2nd/2024 session, the Supervisory Board examined the Management Board's proposal for

the distribution of accumulated profit as at 31 December 2023, 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 87,854,038.93 as at 31 December 2023 shall be

distributed as follows:

▪

A part of the accumulated profit amounting to EUR 39,786,509.00 shall be distributed for

dividend payments. A dividend in the amount of EUR 1.75 gross per share shall be paid to

the shareholders appearing in the Share Register as at 18 June 2024. By 19 June 2024, 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 48,067,529.93 shall be decided

on in the coming years and shall remain undistributed."

Andrej Andoljšek

Chairman of the Supervisory Board

Ljubljana, 28 March 2024

Triglav Group strategy and plans

Strategic risks and business opportunities are regularly assessed based on the challenges

and opportunities identified in the rapidly changing business and social environments.

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 challenges of the transition to a low-carbon society are being addressed by adapting

business and investment strategies, along with launching new products.

The Group's performance in 2023 was significantly impacted by one-off events.

The Group's operations will continue to be profitable in 2024, with further expansion of the

business planned.

4.1

Today's challenges and opportunities

The resilience of the Group's business is closely linked to its understanding of risks and risk

mitigation strategies. In an ever-changing environment, the Group has maintained a forward-

looking perspective, closely monitoring change while identifying new challenges and

opportunities, in addition to effectively tackling new risks that are increasingly interlinked.

Strategic risks and opportunities are regularly assessed, as well as the relevance of the bases on

which the Group's strategy is founded. By constantly upgrading the risk management system,

the Group attains profitable, stable and future-oriented business operations. Preparedness is

seen as the core of the resilience of the Group's operations, closely linked to effective risk

identification and management. This approach enables the Group to maintain its preparedness

at a high level, suitable for optimal response even to unexpected events such as those faced in

2023.

The macroeconomic situation and the regulatory framework for the provision of health

insurance, the growing importance of sustainability aspects in business, increased business

digitalisation and related changes in consumer habits, and the changes resulting from

demographic trends were identified as the main trends that are believed to have a significant

impact on the Group's business operations today and in the coming years.

4.1.1

Risk related to the macroeconomic and regulatory environment

The year was most marked by persistent high inflation, the Russian-Ukrainian war, disruptions

in some supply chains and energy price increases. Higher borrowing costs contributed to a

significant decline in economic growth. Geopolitical risks stemming from the Russian-Ukrainian

war were compounded in October by new risks from the Gaza war. The rise in interest rates

affected the required yields on debt financial instruments and movements in their value. Equity

markets, on the other hand, recorded growth for most of the year. For more information on

macroeconomic trends and geopolitical risks, see Section 7

. Macroeconomic environment and

insurance markets

. The market risks affected are presented in Section

2.8 Risk management of

the Accounting Report

. The Group's operations were also significantly affected by the change in

the regulatory framework for the provision of supplemental health insurance in Slovenia, which,

in addition to challenges, also brings opportunities for the future development of the

complementary health insurance market.

The Group’s acceptance of challenges and risk management

To manage market risks, the Group companies have established

investment policies

which

mainly refer to assets intended to cover future liabilities under non-life and life insurance

policies. The investments set out in these policies are made in the best interests of all

beneficiaries, taking into account all objectives disclosed in the insurance contracts, and are

consistent with the nature and duration of the insurance and reinsurance obligations. This

ensures the security of investments while maximising the return on the risks assumed. In

managing the remaining assets, the Group pursues the objective of achieving an adequate

return, taking into account all the risks assumed and maintaining a high overall credit rating of

the investment portfolio.

As part of the investment process, an effective

monitoring system

was developed

for the entire

counterparty portfolio

to manage, in a timely manner, the risks of any deterioration in the

counterparties' credit quality.

The Group pays particular attention to the timely fulfilment of all obligations, which is realised

through adequate liquidity and its management. To achieve profitability, the Group's

investments in alternative investments are being increased. The increase in their volume in

2023 was monitored through an upgraded management system and the characteristics of these

investments were further captured.

Risks associated with persistent high inflation had a particular impact on fixed-income debt

investments. Interest rate risk is managed through a limit system, within which cash flows of

assets and liabilities are matched. Other segments of the Group's business were also affected

by high inflation. Such increases in claim payments under insurance contracts are managed by

adjusting the pricing policy and by regularly monitoring and managing operating expenses. In

identifying potential risks, the possibility is perceived that the persistence of high inflation,

together with a further rise in interest rates and a consequent contraction in economic activity,

could result in a significant reduction in real disposable income, which could lead to a decline in

demand for insurance contracts and an increase in liquidity risk. The occurrence of a more

significant recession could also lead to higher credit risks.

Geopolitical risks are expected to remain significant in the future, and therefore, the utmost

care is exercised in underwriting insurance and reinsurance business in the international market

and in the geographic diversification of investments and reinsurers, as shown in

Section 2.8 Risk

management

of the Accounting Report.

4.1.2

Climate change and sustainable development

The year 2023 was characterised by natural disasters of a significantly higher magnitude and

severity than the long-term average. The physical risks of climate change, which are associated

with an increase in the severity and frequency of extreme weather events, especially impact the

insurance business. In the region where the Group operates, more frequent and severe floods,

drought periods and hailstorms due to climate change are of particular concern in the long run.

Demand for insurance cover is expected to increase, bringing new opportunities to expand the

volume of business and challenges to increase the required reinsurance covers.

Climate risks also include the risk of transition to a low-carbon economy. The transition is

associated with policy changes, changes in consumer habits, reputational risk, market

sentiment, legal and technological risks, and also includes adapting business operations to

reduce greenhouse gas emissions. Given the nature of the business, the indirect impact through

the investment and insurance portfolios (GHG Scope 3) is more important for the insurance

sector than the direct carbon footprint (GHG Scope 1 and 2) in the transition to a low-carbon

economy. Transition risk could manifest through a significant impact on the value of

investments in more exposed issuers, while shifts in environmental policies and consumer

habits might substantially affect policyholders and insurance products. In addition, there is an

opportunity to proactively influence issuers and policyholders through investment and

insurance activities to promote a faster transition to sustainable business practices.

Global population growth and economic development have resulted in overconsumption of

natural resources. The need for balanced social development that reduces inequality and

improves the situation of the most vulnerable social groups is becoming increasingly important.

Rising average atmospheric temperatures may increase mortality, the spread of infectious

diseases and the likelihood of new epidemics/pandemics, which may increase the demand for,

and the supply of, life and health insurance products. More widespread and prolonged disease

outbreaks may have a negative impact on social and economic stability.

Climate change is therefore a key long-term challenge for the insurance sector, but it is only a

part of the sustainability aspects of its business. The insurance sector may contribute to a higher

level of financial security in terms of physical risks and other sustainability risks and thus to a

better economic situation, notably by offering insurance products and other services to mitigate

climate change effects, in addition to an investment policy that promotes sustainable

development in both the economy and society.

The Group’s acceptance of challenges and risk management

The Triglav Group's mission, summarised in the message

"creating a safer future"

, is put into

practice through its sustainability focus. The opportunities and risks of sustainable

development are identified, and global sustainability best practices are integrated into the

Group's business. The goal is to carry out the Group's core activities, i.e. insurance and asset

management, in a way that will provide long-term economic, social and environmental value to

all stakeholders.

As part of the own risk and solvency assessment process, particular attention was again paid to

the identification and assessment of the Group's climate risks. A qualitative assessment of

climate risks was conducted for both assets and liabilities. Climate risks are anticipated to be

material for the investment segment of the Group's business in the medium and long term. The

Group has assessed that transition risk has no material impact on its business in the short term

in the insurance portfolio, but if legal and technical risks materialise, transition risk may increase

in the medium to long term and become a material risk.

A stress scenario, covering risks that could already be deemed material in the short term, was

performed based on a qualitative assessment of climate risks. These are mainly physical risks

within the insurance portfolio. Continued focus will be on ensuring adequate protection for

clients, taking into account the modification and limitation of reinsurance terms and conditions.

Sustainability risks are also related to the Group's reputational risk, especially with the growing

awareness of society and the importance of sustainability for our stakeholders. Such potential

risks can be realised over a long period of time and affect all key business processes, acquisition

and retention of business and personnel.

The increased role of sustainability also brings many new business opportunities due to both

the need for additional insurance coverage and rapid technological progress and innovations in

sustainable technologies.

See Section

11. Sustainable development at the Triglav Group

for more information about

sustainability aspects.

4.1.3

Digital transformation and cyber security

The digital transformation of insurers has accelerated since the COVID-19 pandemic. Insurers

are following the trend of business digitalisation, implementing new technological solutions

and innovative business models, while ensuring safe products and an outstanding user

experience. Advanced analytics, the use of cloud services, the Internet of Things, cognitive

computing, mobile network development, process automation and robotisation, and machine

learning are all on the rise. More recently, the use of artificial intelligence (AI) in business

processes has been accelerating.

It is becoming increasingly challenging for insurers to adapt rapidly to new market

opportunities while maintaining cost-effective, cyber-resilient and compliant operations.

Ensuring that employees have appropriate competences, skills and knowledge for such

digitalised processes, and even more so for the development and maintenance of advanced

digital technologies, is particularly challenging, therefore cooperation and integration with

external providers is being strengthened.

Digitalisation creates great opportunities for business optimisation, while bringing a number of

new threats and risks. These stem mainly from a lack of understanding and consideration of

new technologies and their impact on business, and from the increasing connectivity of

businesses and their dependence on information and communication technology (ICT) service

providers. They increase the vulnerability of insurers to business disruptions and interruptions,

as well as the need to ensure compliance and information security, especially against cyber-

attacks. Effective risk management and continuous improvement of digital resilience through

regular testing are among the critical factors for successful business performance and

maintaining clients' confidence in secure data processing. This is also underlined by the new

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

the financial sector (DORA), which is expected to become effective in January 2025.

While the AI Regulation will define minimum requirements in the European Union to tackle the

risks and challenges associated with AI. As announced, the financial sector will be required to

comply with the revised Regulation on electronic identification and trust services for electronic

transactions in the internal market (eIDAS 2.0), which refers to the use of the EU Digital Identity

Wallet by citizens to access online services and carry out electronic transactions.

The Group’s acceptance of challenges and risk management

The Triglav Group is continuously adapting to environmental changes, accelerating business

digitalisation and implementing innovations to support the achievement of its strategic

development goals. An omni-channel sales approach, paperless operations and remote business

are being effectively implemented. The Group is well prepared for the digital transformation

thanks to the rapid deployment of solutions such as remote signing, video identification, the

use of electronic identities and remote inspection of the object insured. The digitalisation

process is continuously being expanded, enhanced and upgraded. See Section

10.2

Transformation and digitalisation

for more information on development activities.

New solutions are evaluated before being implemented and regularly tested in terms of security

and business continuity. Client satisfaction with new solutions is also checked, and the services

offered are further improved based on their feedback. Productivity tools, including the use of AI,

are introduced to drive innovation and increase the efficiency of business processes. The Group's

risk

management

processes

were

upgraded

with

additional

rules

and

controls

comprehensively and systematically identify, assess and manage the risks posed by new

technological solutions.

The Group cooperates with ICT service providers who are committed to high security standards

and whose solutions comply with information security and data protection legislation. Tailored

cyber protection insurance products and assistance services are offered to clients to better deal

with the challenges of remote business and cyber threats.

The information security and security controls management system is continuously upgraded

and

information security

, business continuity plans and recovery procedures are

regularly

reviewed at various levels

Tools and processes to manage all types of operational risks,

including information (cyber) risks, are also regularly upgraded. These are consistently

incorporated into stress scenario tests, whereby information security is analysed and measures

are taken to make further improvements.

Employees are regularly made aware of information security risks and trained on the safe use

of IT. Their level of awareness is also regularly assessed, and additional measures and new

approaches are implemented.

Information security is an essential aspect in the design of the Group's processes, information

systems and controls. In 2023, Zavarovalnica Triglav underscored its importance by obtaining

ISO/IEC 27001:2013 certification for its information security management system.

4.1.4

Demographic and human resource risks

Population ageing, as a consequence of increasing life expectancy and declining fertility rates,

is one of the key challenges of the more mature European economies. It is also reflected in

labour shortages, which will have a significant impact on future economic development and

growth. International migration is mitigating these trends to some extent. In most European

countries, young age groups typically have a lower average income, which means that public

social welfare systems are funded less and the need for social security and its funding is greater.

The awareness that health, lifestyle and environmental aspects are interconnected is growing

noticeably.

Employment in the EU is at an all-time high, with demand for workers surpassing supply in

many sectors and industries. The shortage of skilled workers is particularly acute for profiles

which are in high demand due to the rapidly advancing business digitalisation and the need to

combine IT skills and good knowledge of specific topics. For these profiles, it is all the more

important that employers succeed in attracting and retaining them. The COVID-19 pandemic

has markedly reshaped the labour market and encouraged several forms of hybrid work.

Employers who are better able to adapt to new demands and expectations have a better chance

of attracting and retaining suitable staff, which also raises salary costs.

Furthermore, the impact of the external environment on economies worldwide is increasingly

evident with regard to the Fourth Industrial Revolution, particularly in the field of AI.

The Group’s acceptance of challenges and risk management

Demographic trends are monitored on an on-going basis in all Group markets. The need to

adjust insurance terms and conditions and calculation factors is checked, in addition to

identifying opportunities for new insurance covers and products. The coverage of risks that the

compulsory social security scheme covers inadequately or does not cover at all is ensured by a

range of complementary 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, which requires special attention, is managed by developing dynamic models of

the policyholders' life expectancy and setting appropriate premium rates and provisions.

The changing insurance preferences and needs of younger generations offer opportunities for

innovation and product adaptation. Awareness among young people is being raised to ensure

their financial security through new insurance products, and they are being engaged through

omni-channel offers and innovative approaches in advertising and information.

The Group is aware that healthcare will continue to grow in social significance. It is 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 is transforming from a traditional health insurance

provider into a health partner and provides clients with comprehensive lifelong services. By

offering additional health insurance products and services, it reduces the risks of a healthcare

reform and the consequences of the termination of supplemental health insurance in Slovenia.

The Group recognises the key role of employees in achieving its ambitious business objectives.

The current shortage on Slovenia's labour market affects new employees with specialist skills

and competences, especially in IT, digitalisation, business intelligence, risk management,

actuarial science, etc. The risk of key staff leaving is also a current concern.

Efforts are being made to reduce the risk of unwanted turnover through good working

conditions. 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 and young people. Young people are

actively involved in various initiatives before they are hired through company scholarships, work

placements, and company and business presentations. Substantial investments are made in the

professional and general training of employees.

Where the nature of the work allowed, hybrid work was enabled to employees of Group

companies during the pandemic. The hybrid model was not only preserved but made available

on an even larger scale in some companies in 2023, which could be the Group's competitive

advantage. See Section

8.5 Investment in own-use real property and equipment

for more

information on the hybrid workplace as a strategic pilot project.

A centre of excellence for business developers has been set up to provide ongoing training for

employees in the use of new technologies. This is discussed in more detail in Section

10.2 Digital

transformation.

Employee satisfaction within the Group is regularly monitored by measuring the organisational

climate. According to the results, the Group is effectively adapting to changes, communication

is open and effective, and the Group remains an attractive working environment. See Section

11.3.2 Responsibility to employees

for more information about care for employees.

4.2

Triglav Group Strategy for 2022–2025

At the Triglav Group, stakeholder value creation relies on aligning its mission, business strategy

and sustainable development policy. Integrating relevant sustainability aspects into all levels of

business planning and execution is a key building block for the Group's long-term sound

performance and for upgrading its risk management, as well as for the development of its

internal culture and relationships with its clients and other stakeholders.

Mission, vision and values

GRI 3-3.

Strategic guidelines

The Group's 2022–2025 strategy aims to achieve a net return on equity (ROE) of 10% and a total revenue exceeding EUR 1.6 billion annually (the figures are set

in accordance with the previous IFRS 4 reporting framework).

Development of organisational culture

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 development of service-oriented business models

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.

Operating safely and profitably

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.

An outstanding client experience

▪

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.

Operating

safely and

profitably

The

development of

service-oriented

business models

Digital

transformation

Digital transformation

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.

Development of

organisational

culture

An outstanding

client

experience

4.3

Implementation of the Triglav Group strategy in 2023

The Group is focused on safe, profitable, and client-centric operations. In 2023, the Group's

strategic guidelines to 2025 were consistently implemented and built upon for further growth

and development.

The Group continued both strategic activities, business digitalisation and transformation, with

the aim of establishing leadership in the sector and the region. Advanced tools were

implemented in business processes, and innovations such as artificial intelligence were used to

create system solutions. Business partnerships and ecosystem services were expanded.

The implementation of strategic guidelines that deepen client focus enables the Group to

achieve business resilience and provides it with the ability to operate responsively and reliably

even in challenging circumstances, while streamlining solutions for greater simplicity. All of this

is reflected in a high level of employee engagement, a multi-channel approach to clients and an

increasingly flexible organisation.

Through its sustainable operations, the Group has affirmed itself as a development-oriented

environment for its employees and a stable investment for investors. Below is the summary of

the key results in the implementation of the strategic guidelines. Under

Delivering on ESG

strategic ambitions

, key steps towards achieving a climate-neutral and climate-resilient circular

economy are outlined. See Section

11. Sustainable development

for further information.

Operating safely and profitably

▪

Profitable operations and credit rating

→

Earnings before tax: EUR 21.1 million

→

Return on equity (ROE): 1.8%

→

Dividend: paid out in line with the dividend policy in the total amount of EUR 56.8 million or EUR 2.50 gross

per share

→

Credit rating: re-affirmed "A" credit rating with a stable medium-term outlook

→

The impact of CAT claims that deviated significantly from the long-term average on the achievement of the

Group's planned annual result: limited by adequate reinsurance protection

▪

Growth in business volume

→

Gross written premium: +12%

→

The Group's market share in the Slovenian insurance market: +0.6 percentage point

→

Total revenue: +11%

→

Seized opportunities for expanding the business within the region based on new business models and

partnerships

→

The position in South-East Europe: the largest insurance group in terms of written premium

▪

Capital adequacy and capital allocation

→

Prudent implementation of the capital management policy

→

Consistent monitoring of market capital and assessment of risks by individual activity (insurance business,

investment management, capital management): financial strength and maintained capital adequacy, which

remains within the target range

▪

Safe operations and compliance

→

Implementation of the new accounting standards IFRS 9 and IFRS 17

→

Internationally renowned audit firm (Big 4)

→

Upgraded network and server infrastructure

→

Centralising the Group's IT infrastructure and setting up a hybrid cloud

▪

Internal synergies and productivity growth

→

Business productivity: increased by 11%

→

Gross written premium per employee: EUR 353 thousand

→

Transferring good practices and leveraging the Group's internal potential

GRI 3-3.

An outstanding client experience

▪

Client satisfaction and loyalty

→

Significantly more users of the i-triglav digital office and clients who gave their consent to do business

electronically

→

High client satisfaction score with Group services (Net Promoter Score): 73

→

Improved understanding of our products and services

→

Implemented a new comprehensive bonus system

▪

Comprehensive and client-tailored services and an omni-channel approach

→

Implementation of advanced underwriting tools, personalisation of products and services

→

Simplification and digitalisation of remote underwriting and sales processes

→

Client-tailored innovations in sales promotion through the banks' call centre with insurance distribution

→

Enhanced automation of marketing campaigns in direct marketing

→

Expansion of international reinsurance and partner network in markets outside the Adria region

▪

Increased number of active clients and higher insurance coverage of each client

→

The total number of clients up by 10%

→

Implementation of artificial intelligence and cognitive services into process automation

→

Development of a new universal AI assistant

→

Core solutions for the complete digitalisation of the sales process

▪

Actions following CAT events caused by natural disasters

→

Intensive client information and support on how to report claims

→

Promoting the remote reporting of claims

Development of service-oriented business models and digital transformation

▪

Advanced service-oriented business models

→

A central entry communication point for clients

→

Business ecosystems: new services and partnerships

(

mobility, home, pets and health)

▪

Digitalisation, optimisation and automation of business processes

→

Sales: completed project to optimise online insurance sales

→

Claims: simplified claim reporting procedure by implementing an omni-channel step-by-step reporting

approach

→

Marketing: machine learning models implemented to predict new products

→

Client communication: increased transparency using Dynamics 365

Development of an organisational culture

▪

Realisation of the Group’s key values

→

Organisational culture: acting in line with our values of responsiveness, simplicity and reliability

→

The promotion of teamwork, intergenerational cooperation and a healthy lifestyle

→

Raising awareness of responsible, client-centred behaviour

▪

Digitisation of HR services and automation of Group processes

→

Processes: upgrading and streamlining HR processes

→

HR information system: system unification

→

Development modules: implemented in Gecko HRM

▪

Employee acquisition, development and retention

→

Employer brand: redesign at Group level

→

Satisfaction and engagement: a high value of the strategic indicator

→

General competences:

training sessions on taking initiative

→

Digital competences: training of sales staff

▪

Development of key, promising staff and young people

→

Succession:

setting up succession systems for the management of Group companies

→

Leadership: training for leaders (B-1) to promote the competences of promising employees

▪

Organisation

→

Organisational structure: adapting to modern processes and optimising staffing

→

Hybrid forms of work: introducing hybrid workplaces in several locations

Delivering on ESG strategic ambitions

▪

Insurance and asset management

→

The share of green, sustainable and social impact bonds in the investment portfolio: an increase from

9.9% to 11.1%

→

Triglav Skladi's mutual funds: sustainability aspects of investments incorporated into the management

of 12 funds

→

Incom

e from

insurance products that promote general social and environmental benefits:

an expanded

product range and an increase in written premium in the insurance business

▪

Business processes

→

Reduction of the Group's carbon footprint for Scope 1 and 2: a decrease of 6%

→

Energy saving and sustainability: raising awareness among employees

→

Sustainable mobility: a higher share of electric and hybrid vehicles in the fleet from 8% to 12%

▪

Responsible stakeholder engagement

→

Active relations with shareholders and investors and compliance with Ljubljana Stock Exchange Prime

Market terms and conditions

→

Delivering on the SDGs: continuing the Insure Our Future project with partners

▪

Effective corporate governance

→

Standards: high standards of corporate governance

→

Policies: implementation of the Group's Sustainable Development Policy, Sustainable Investment Policy

and Statement on principal adverse impacts of investment decisions on sustainability factors

→

Global alliances: joining the United Nations Principles for Responsible Investment (UN PRI) and the

Partnership for Sustainable Economy (CER)

→

Compliance: monitoring and implementing ESG regulatory changes through committees in the risk

management system

4.4

Implementation of the Triglav Group’s business plans in 2023

In a challenging year marked by extreme CAT events, changes in the healthcare system and

inflation, the Triglav Group achieved

earnings before tax of EUR 21.1 million

, or 80% less than

planned (see Section

8. Operations of the Triglav Group and Zavarovalnica Triglav

for further

information).

Total written premium rose by 12%

to EUR 1,653.7 million, exceeding the planned figures, which

is slightly above the target of EUR 1.5–1.6 billion. Despite fierce competition, an increase was

seen in all insurance markets, with the exception of Croatia, and in all insurance segments.

Premium growth was 9% in the Slovenian market, 7% in the other markets of the Adria region

and 28% in the international market.

The Group's

combined ratio in non-life and health insurance

stood at

101.6%

. It increased by 1.9

percentage points compared to the previous year, due to the negative effects of changes in

supplemental health insurance and a deterioration in the claims ratio. See Section

8. Operations

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.

4.5

Plans of the Triglav Group for 2024

In 2024, the Triglav Group anticipates a moderately favourable macroeconomic situation.

Business operations will be influenced by financial market developments, the termination of

supplemental health insurance in Slovenia, reinsurance coverage and the development of

potential in the markets where the Group operates.

Earnings before tax

of EUR 100–120 million are planned, as a result of expected normalisation

of business conditions compared to 2023. In the insurance business, the Group plans to operate

profitably and record

a total business volume

of around EUR 1.6 billion, as well as achieve

the

combined ratio

of non-life and health insurance at around 95%. In the health segment, the

termination of supplemental health insurance is anticipated, while the development and

provision of complementary health insurance products will continue.

Strategic guidelines will be consistently implemented. By continuing its digital transformation

and developing service-oriented business ecosystems, the Group will further pursue its main

strategic objective – an outstanding and uniform client experience. As the leading insurance and

financial group in Slovenia and the Adria region, the Group will further strengthen its market

position, while seeking opportunities according to the principle of free movement of services

and through partnerships.

It will strive for cost optimisation and effectiveness (productivity gains, automation,

digitalisation and centralisation). Priority objectives include effective risk management,

maintaining financial stability and preserving high credit ratings from renowned 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. The pursuit of

the sustainable development strategy, as outlined in the Group's policies and ambitions, will

remain a key focus.

Corporate Governance Statement

The corporate governance system was further integrated into the operations and business

practices of Group companies by building on common standards and rules. The internal

control system was upgraded, in addition to revising the delegation of responsibilities, the

remuneration policy, and the fit and proper requirements.

President of the Management Board Andrej Slapar and Management Board members Uroš

Ivanc and Tadej Čoroli were reappointed for a five-year term. Their current term of office

expires in 2024.

Monica Cramer Manhem and Tim Umberger were appointed as new Supervisory Board

members, shareholder representatives, while Aleš Košiček and Janja Strmljan Čevnja were

appointed as new Supervisory Board members, employee representatives.

5.1

Governance policy

Zavarovalnica Triglav's governance system plays the main role in the implementation of the

business strategy and effective risk management on which it is based. The main governance

guidelines take into account the set long-term objectives. They are defined in the Governance

System and Policy of Zavarovalnica Triglav d.d., which is adopted by the Management Board and

the Supervisory Board. It is published on SEOnet, the Ljubljana Stock Exchange information

system, and on the Company's website (

www.triglav.eu

5.2

Statement of Compliance with the Slovene Corporate Governance Code

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

the Code), which was adopted on 9 December 2021. The Code is available on the Ljubljana Stock

Exchange's website in Slovenian and English. Zavarovalnica Triglav's statement of compliance

with the Corporate Governance Code for the period from 1 January 2023 to the day of its

publication in 2024 is available on SEOnet and Zavarovalnica Triglav's official website.

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:

▪

Points 4.1 to 4.3,

which 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. When Management Board and Supervisory Board members are appointed,

efforts are made to achieve as much diversity as possible. The Company's Diversity Policy

sets out that 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. 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.

(hereinafter: the Fit and Proper Policy). The Diversity Policy requires that both genders are

represented on the management and supervisory bodies. In this respect, the ratio between

the two genders, appropriate to the size of the company and its goals and procedures, is not

predetermined, as it is first necessary to ensure the fitness and propriety of the bodies as a

whole, in accordance with the strict regulations of the law. These require that both

individual members and bodies as a whole meet special fit and proper criteria for insurance

undertakings. The Diversity Policy does not set goals for each aspect of diversity and for each

body separately, but it does determine the method 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,

which 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 Slovenian Insurance Supervision Agency. One of the key

functions at the Company is internal audit, 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.

▪

Point 16.4,

which stipulates that at least once in every three years the supervisory board

should ensure an external assessment in which it cooperates with an independent 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, which it

considers carefully and adopts an action plan of measures to improve its performance. At its

discretion, the Supervisory Board also performs external assessment by cooperating with

relevant external experts. The last such assessment was performed in February 2023.

▪

Point 21.6,

which 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, Management Board members do not

require the prior approval of the Supervisory Board for 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).

▪

Point 25,

which stipulates that all supervisory board and committee members are

independent:

Two members of the Supervisory Board, both employee representatives, whose term of

office ended on 1 June 2023, 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. After 1 June 2023, all members of the Supervisory Board were independent.

In its operations, the Company abides by the principles of the Insurance Code, available on the

website of the Slovenian Insurance Association (

www.zav-zdruzenje.si

The Company also has its own code, which defines 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.

The Statement of compliance with the Slovenian Corporate Governance Code is available both

on SEOnet and the Company's official website.

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 of

Zavarovalnica Triglav d.d. (hereinafter: the Articles of Association) and adopted rules of

procedure. Zavarovalnica Triglav's Articles of Association are published on its official website.

Two-tier governance of Zavarovalnica Triglav

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. It 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 holder of a Zavarovalnica Triglav share has 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.

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

GRI 2-9, 2-10.

General Meeting

of Shareholders

Supervisory Board

Management Board

77 %

of all voting rights

at the 48th General

Meeting of Shareholders

members

(as at 31 December 2023)

4-year

term of office

members

5-year

term of office

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 held a qualifying holding as at 31 December 2023:

▪

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 in 2023 remained unchanged. On behalf and for

the account of ZPIZ, the shareholder's rights are exercised 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 2023.

▪

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 2023

Zavarovalnica Triglav held one General Meeting of Shareholders in 2023. The total number of

shares and voting rights represented at the 48th General Meeting of Shareholders, held on 6

June 2023, was 17,418,012 or 76.87% of all shares. The shareholders took note of the following

documents:

▪

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

independent auditor's report;

▪

annual Internal Audit Report for 2022;

▪

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;

▪

opinion given by the Supervisory Board on the Annual Internal Audit Report for 2022.

The shareholders approved Zavarovalnica Triglav's remuneration report for 2022, whereas the

consultative resolution on its remuneration policy was not adopted. The Company's

remuneration policy complies with the law but it is not fully in line with SDH's recommendations

of 4 May 2023, which were published after convening the General Meeting of Shareholders.

These recommendations will be examined by the time the next regular General Meeting of

Shareholders of Zavarovalnica Triglav takes place.

The shareholders adopted a resolution on the following distribution of the accumulated profit

of EUR 63,769,278.25 as at 31 December 2022:

▪

A part of accumulated profit in the amount of EUR 56,837,870.00 shall be allocated for

dividend payments. The dividend of EUR 2.50 gross per share shall be paid to the

shareholders appearing in the share register as at 20 June 2023. As at 21 June 2023, 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 6,931,408.25 shall be decided

in the next few years.

The shareholders granted a discharge for the 2022 financial year to both the Management Board

and the Supervisory Board of Zavarovalnica Triglav.

Monica Cramer Manhem and Tim Umberger were appointed new Supervisory Board members,

shareholder representatives.

5.3.2

Management Board

The Management Board manages and governs 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.

In line with the Solvency II Directive, 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 applying to individual Management Board

members and the Management Board as a collective body 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 Management Board members to be

performed before the appointment, periodically, extraordinarily or after the appointment of an

individual Management Board member. 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 November 2023, Andrej Slapar, Tadej Čoroli and Uroš Ivanc were assessed before their

appointment as Management Board members; all three were assessed to be fit and proper. In

the same month, a periodic assessment was performed for the existing Management Board

members Marica Makoter and Blaž Jakič and the Management Board as a collective body. It was

found that the Management Board as a collective body is fit and proper to manage the Company

with prudence and due diligence.

The Diversity Policy is also taken into account when appointing an individual member of the

Management Board. Its goal is not only to achieve representation of both genders and various

age groups but also to ensure the complementarity and diversity of the Management Board. In

doing so, qualifications, experience and knowledge are taken into account, as outlined in the Fit

and Proper Policy. 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. The gender representation ratio in the Management Board was

last 4:1, with the underrepresented gender accounting for 20%.

Blaž Jakič began his five-year term of office as a Management Board member on 2 March 2023.

On 29 November 2023, the Supervisory Board reappointed Andrej Slapar as the President of the

Management Board for a new five-year term of office. He has held this position since May 2013;

his new five-year term of office will begin on 13 November 2024. The Supervisory Board agreed

with the President of the Management Board's proposal and reappointed Uroš Ivanc and Tadej

Čoroli as Management Board members. They served as Management Board members since July

2014. The new five-year term of office of Uroš Ivanc will commence on 16 July 2024 and that of

Tadej Čoroli on 31 July 2024.

Composition and appointment of the Management Board

In accordance with the Company's Articles of Association, the Management Board may have 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.

5.3.2.2

Presentation of the Management Board, its functioning and powers

Composition of the Management Board in 2023

First and last name

Function

Area of work in the Management Board

(as at 31 December 2023)

Start of term of

office (the first)

End of term

of office

Gender

Nationality

Year of

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 (Internal

Audit

Department,

Corporate

Communication

Department and Compliance Office). In charge of

Corporate

Accounts

Division,

Non-Life

Insurance

Division,

Triglav

Group

Subsidiary

Management

Division (excluding the subsidiaries outside Slovenia),

and

Corporate

and

Legal

Affairs

Division.

Also

responsible for HR matters related to the employees

with special powers, arbitration and Nuclear Pool, as

well as for the drawing up and implementation of the

strategy of Zavarovalnica Triglav and the Triglav Group.

22 May 2013

13 November

2029

Male

Slovenian

1972

LL.B.

Management, strategic

management, commercial

law, insurance and

reinsurance, actuarial science

Uroš Ivanc

Member

In charge of Non-Life Insurance Actuarial Department,

Life

Insurance

Actuarial

Department,

Accounting

Division, Finance and Controlling Division, excluding

Investment Department, Triglav Group Subsidiary

Management Division

– the subsidiaries

outside

Slovenia and two head office support departments –

Investment Department and Outward Reinsurance

Department.

Also

esponsible

for

mergers

and

acquisitions (M&A), investor relations (IR) and relations

with

credit

rating

agencies,

well

for

environmental,

social

and

corporate

sustainable

development (ESG) activities.

14 July 2014

16 July 2029

Male

Slovenian

1975

MSc in

Business and

Organisation

Management and

organisation, strategic

management, insurance,

financial management,

financial markets and

analyses, asset management,

actuarial analyses, 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.

Tadej Čoroli

Member

In charge of Marketing Department (a head office

support

department),

Non-Life

Insurance

Claims

Division,

Insurance

Sales

Division

and

Digital

Operations and Client Experience Division.

29 July 2014

31 July 2029

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

Fraud

Prevention,

Detection

and

Investigation

Department

and

Change

and

Project

Portfolio

Management Department. Responsible for human

resource management (excluding HR matters related

the

employees

with

special

powers).

Also

responsible for the Strategic Sourcing Department (a

head office support department).

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.

Triglav, Upravljanje nepremičnin d.o.o. (from

8 March 2023)

Blaž Jakič

Member

In charge of Life Insurance Division, IT Division, Back

Office

Division,

Digital

Platform

and

Business

Intelligence Division and two head office support

departments – Risk Management Department and

Bancassurance Section. He is responsible for money

laundering prevention.

2 March 2023

2 March 2028

Male

Slovenian

1982

BSc in

Economics

Insurance, finance,

accounting, business

strategy and business

models, governance systems,

actuarial analyses, risk

management

Triglav, pokojninska družba d.d. (from 18

February 2023)

Triglav Skladi d.o.o., (from 21 March 2023)

Diagnostični center Vila Bogatin d.o.o., Bled

Triglav osiguranje a.d., Banja Luka (until 1

October 2023)

GRI 2-11, 2-12,405-1, SASB: FN-AC-330a.1.

Andrej Slapar took over the position of the President of the Management Board ten years ago;

in 2023 all members of the Management Board together performed their function for an average

of 7.75 years.

Remuneration of Management Board members

Data on the remuneration of the Management Board members are disclosed in Section

4.4 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 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 Policy is one

of the policies with which the Company implements a robust and reliable management system,

ensures business integrity and transparency, and maintains the appropriate capital strength of

the Company. Furthermore, it encourages reliable and effective risk management, and provides

for the acquisition and retention of appropriately professionally qualified, competent,

responsible and engaged employees. In 2023, the Remuneration Policy was amended in

accordance with SDH's recommendations and current legislation.

The remuneration of the Management Board members consists of the basic salary (fixed part)

and a variable part of the salary. The basic salary is based on the Remuneration Policy, the

employment and performance contract and the Act Governing the Remuneration of Managers

of Companies with Majority Ownership Held by the Republic of Slovenia or Self-Governing Local

Communities (ZPPOGD). The basic salary of the President of the Management Board is set at five

times the average gross salary in the previous financial year, paid in the Triglav Group companies

headquartered in the Republic of Slovenia and consolidated in the annual report in accordance

with the Companies Act, while the basic salary of the Management Board members is set at 95%

of the basic salary of the President of the Management Board. The variable remuneration for

performance (in accordance with the ZPPOGD) can amount to a maximum of 30% of the basic

salaries paid in the financial year and includes: part of the salary for performance, part of the

salary for the overall performance based on the overall annual targets of the Management Board

and part of the salary for individual performance based on personal annual targets.

The Management Board's performance is determined by taking into account the Company's

performance in the short and long term, including the current and future risks to which the

Company is exposed. The performance assessment takes into account:

▪

Financial criteria

(70% of all criteria) that can measure the business volume, profitability of

the insurance activity, profitability of the investment activity, cost efficiency, return on

equity and growth in the Company's value or other financial performance criteria.

▪

Non-financial criteria

(30% of all criteria) that can measure the achievement of the business

strategy's non-financial objectives, compliance with the relevant regulations, internal acts

and limitations from the risk appetite statement, acting in accordance with ethical and

professional

standards

and

the

achievement

sustainable

development

goals

(environmental, social, governance) or other non-financial performance criteria.

The variable remuneration is set in more detail using a methodology approved by the

Supervisory Board upon approval of the plan for the next calendar year and a one-on-one annual

GRI 2-18, 2-19, 2-20, 2-21.

interview with each Management Board member, where the personal annual targets of the

Management Board member are identified.

The amount of remuneration and the Remuneration Policy are approved by the General Meeting

of Shareholders. Data on the remuneration of the Management Board members are disclosed in

Section

4.4 of the Accounting Report.

5.3.3

Supervisory Board

The Company's conduct of business is supervised by the Supervisory Board. In line with the

Articles of Association, the Supervisory Board 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.

On 9 December 2022, the Supervisory Board members Branko Bračko and Peter Kavčič resigned

as Supervisory Board members. In order to ensure the proper implementation of the nomination

procedures, their resignation and the termination of their term of office took effect on 6 June

2023. Monica Cramer Manhem and Tim Umberger were appointed new Supervisory Board

members, shareholder representatives, for the four-year term of office, starting on 7 June 2023.

The term of office of Igor Zupan, Supervisory Board member and employee representative, ended

on 31 May 2023, and that of Branko Gorjan and Peter Celar on 1 June 2023. At its meeting on 10

July 2023, the Works Council appointed Aleš Košiček, Vinko Letnar and Janja Strmljan Čevnja to

the Company's Supervisory Board as employee representatives for a four-year term of office,

which started on 11 July 2023.

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, especially the Fit and Proper Policy.

Fit and proper assessment is made before the appointment, periodically, extraordinarily or after

the appointment of an individual Supervisory Board member. In accordance with the

aforementioned policy, in March 2023, prior to the appointment of new Supervisory Board

members, a fit and proper assessment of the candidates for Supervisory Board members –

shareholder representatives, Monica Cramer Manhem and Tim Umberger, was conducted, who

were assessed as fit and proper to perform their duties as Supervisory Board members. In August

2023, the subsequent fit and proper assessment of the Supervisory Board members – employee

representatives, Aleš Košiček, Janja Strmljan Čevnja and Vinko Letnar, who were appointed by

the Works Council, was conducted. Aleš Košiček and Janja Strmljan Čevnja were assessed as fit

and proper to perform their duties as Supervisory Board members. Vinko Letnar, however, was

found not to meet the fit and proper requirements stipulated by law and internal regulations

(see Section

4.7 Events after the reporting period

in the Accounting Report).

In November 2023, a periodic fit and proper assessment was carried out for all Supervisory Board

members and the Supervisory Board as a collective body, comprising Andrej Andoljšek, Igor

Stebernak, Tomaž Benčina, Jure Valjavec, Monica Cramer Manhem, Tim Umberger, Aleš Košiček

and Janja Strmljan Čevnja. All individual members and the Supervisory Board as a collective body

were assessed as fit and proper on a periodic basis. Vinko Letnar, who was appointed by the

Works Council as a Supervisory Board member, employee representative, was not taken into

account in the preparation of the periodic assessment, as it was previously established that he

did not meet the fit and proper requirements for a Supervisory Board member.

The periodic fit and proper assessment of the Audit Committee's external member Luka Kumer

was carried out, who is an independent expert qualified in accounting/auditing. It was

established that he continues to be fit and proper to perform the duties of the Audit Committee's

external member.

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 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 ratio in the Supervisory Board is not predetermined. When appointing Supervisory Board

members, the fit and proper requirements stipulated by law and the regulator are primarily

taken into account with respect to both an individual Supervisory Board member and the

Supervisory Board as a whole. If the fit and proper criteria are met by several candidates, priority

is given to the candidate who contributes to the greater diversity of the Supervisory Board

(diversity in terms of gender, age, nationality, etc.). These principles were also considered when

appointing new Supervisory Board members in 2023, so that the gender representation ratio

was 6:2, with the underrepresented gender accounting for 25%.

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

on the Company's website). In addition, the Supervisory Board gives 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.

5.3.3.2

Supervisory Board in 2023

Composition of the Supervisory Board in 2023

GRI 2-15, 405-1, SASB: FN-AC-330a.1.

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

birth

Education

Professional profile

Independence

pursuant to

Slovenian Corporate

Governance Code

Existence

of conflict

of interest

in 2023

Membership in the

supervisory and/or

management bodies

of other companies

while serving on the

Supervisory Board in

2023

Membership in

Supervisory

Board

committees

Function in

Supervisory Board

committees

Attendance

of meetings

Supervisory

Board

committees /

total number

of meetings

Supervisory

Board

committees

Andrej Andoljšek

Member

13 June

2017

13 June

2021

10 of 10

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

Nomination

Committee

Appointment

and

Remuneration

Committee

Member

Chairman until 6

June 2023

Chairman from 29

November 2023

Member from 29

May 2023

2 of 2

5 of 5

4 of 10

Vice Chairma

Chairman

Member

Chairman

21 June

2017

18 August

2020

14 June

2021

18 June

2021

17 August

2020

13 June

2021

14 June

2025

14 June

2025

Branko Bračko

Member

Vice Chairma

14 June

2021

18 June

2021

6 June 2023

5 of 10

Male

Slovenian

1967

BSc in

Mechanical

Engineering

Business strategy and business

models, governance system

YES

Stanovanjsko

podjetje Konjice

d.o.o.

Strategy

Committee

Chairman until 28

May 2023

1 of 2

Tomaž Benčina

Member

14 June

2021

14 June

2025

10 of 10

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

Strategy

Committee

Audit

Committee

Chairman

Member from 1

September 2023

Member from 29

May to 31 August

2023

10 of 10

1 of 2

1 of 7

Peter Kavčič

Member

14 June

2021

6 June 2023

5 of 10

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

Strategy

Committee

Chairman until 28

May 2023

Member until 28

May 2023

4 of 7

1 of 2

Igor Stebernak

Chairman

Member

Vice Chairman

18 August

2016

3 June 2020

30 August

2023

2 June 2020

3 June 2024

8 of 8

10 of 10

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

Strategy

Committee

Member

Chairman from 29

May 2023

Member from 25

May 2023

6 of 7

1 of 2

Jure Valjavec

Member

14 June

2021

14 June

2025

10 of 10

Male

Slovenian

1975

Master of Science

Business strategy and business

models, governance system

YES

Appointment

and

Remuneration

Committee

Member

Member until 6

June 2023

10 of 10

5 of 5

External members of Supervisory Board committees in 2023

First and last name

Supervisory Board

committee

Attendance of meetings of

Supervisory Board committees and

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 2023

Luka Kumer

Audit Committee

7 of 7

Male

Slovenian

BSc in Economics

1981

Financial markets, business strategy and

business models, governance system,

financial analyses

Mitja Svoljšak

Nomination Committee

(until 6 June 2023)

5 of 5

Male

Slovenian

BSc in Economics

1974

Corporate finance, asset management

Cinkarna Celje d.d.

Mateja Lovšin Herič

Nomination Committee

Female

Slovenian

BSc in Economics

1969

Corporate governance and finance

Istrabenz turizem d.d., Koto d.o.o.

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

birth

Education

Professional profile

Independence

pursuant to

Slovenian Corporate

Governance Code

Existence

of conflict

of interest

in 2023

Membership in the

supervisory and/or

management bodies

of other companies

while serving on the

Supervisory Board in

2023

Membership in

Supervisory

Board

committees

Function in

Supervisory Board

committees

Attendance

of meetings

Supervisory

Board

committees /

total number

of meetings

Supervisory

Board

committees

Nomination

Committee

Strategy

Committee

Member from 29

November 2023

Chairman from 29

May 2023

1 of 2

Peter Celar

Member

29 May 2007

1 June 2019

31 May 2019

1 June 2023

5 of 10

Male

Slovenian

1958

BSc in Economics

Insurance, governance systems,

regulatory and other legal

requirements that apply to

Zavarovalnica Triglav

Appointment

and

Remuneration

Committee

Member until 28

May 2023

6 of 10

Branko Gorjan

Member

14 March

1995

1 June 2019

30 May 2015

1 June 2023

5 of 10

Male

Slovenian

1960

Economic

technician

Insurance, governance systems,

regulatory and other legal

requirements that apply to

Zavarovalnica Triglav

Strategy

Committee

Member until 28

May 2023

1 of 2

Igor Zupan

Member

27 September

2019

31 May 2023

5 of 10

Male

Slovenian

1972

BSc in

Organisation

Insurance, governance systems,

regulatory and other legal

requirements that apply to

Zavarovalnica Triglav

YES

Audit

Committee

Nomination

Committee

Member until 28

May 2023

Member

4 of 7

5 of 5

Tim Umberger

Member

7 June 2023

7 June 2027

5 of 10

Male

Slovenian

1980

MSc in Economics

Financial markets and analyses

YES

Gorenjska banka

Audit

Committee

Strategy

Committee

Member from 1

September 2023

Member from 1

September 2023

2 of 7

1 of 6

Monica Cramer

Manhem

Member

7 June 2023

7 June 2027

5 of 10

Female

Swedish

1959

International

School of Brussels

and BSc in

Economics

International regulatory and

other legal requirements,

financial and actuarial analyses

YES

CCR Re, France

Sompo Int'l Lux

Strategy

Committee

Member from 1

September 2023

1 of 2

Aleš Košiček

Member

11 July 2023

10 July 2027

4 of 10

Male

Slovenian

1966

MSc in Business

and Organisation

Insurance, governance systems,

business strategy and business

models, financial analyses in the

context of Zavarovalnica Triglav's

operations

YES

Audit

Committee

Nomination

Committee

Member from 1

September 2023

Member from 29

November 2023

2 of 7

Janja Strmljan Čevnja

Member

11 July 2023

10 July 2027

4 of 10

Female

Slovenian

1969

LL.B.

Regulatory and other legal

requirements that apply to

Zavarovalnica Triglav

YES

Strategy

Committee

Member from 1

September 2023

1 of 2

By signing the Statement of Independence and Loyalty, which is available on the Company's

website, 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

4.4 of the Accounting

Report.

Their remuneration was in line with the resolution passed by the 41st General Meeting

of Shareholders of Zavarovalnica Triglav.

5.3.3.3

Composition of Supervisory Board committees and their activities in 2023

In 2023, the Company had the following committees: the Audit Committee, the Appointment

and Remuneration Committee and the Strategy Committee, as well as the Nomination

Committee 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 figure below.

The Supervisory Board committees and their main tasks

Supervisory Board

Audit Committee

▪

monitors the financial reporting process and 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 obligatory 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 quarterly 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

and 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

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.

In 2023,

the Audit Committee

was composed of Peter Kavčič (until 28 May) and Igor Stebernak

(from 29 May) as chair, and Igor Zupan (until 28 May), Tim Umberger (from 1 September), Aleš

Košiček (from 1 September) and Luka Kumer, an independent external expert, as members.

Tomaž Benčina was its member between 29 May and 31 August 2023.

The Appointment and Remuneration Committee

had the following composition: Tomaž Benčina

as its chair and Jure Valjavec, Peter Celar (until 28 May) and Andrej Andoljšek (from 29 May) as

its members.

The Strategy Committee

was composed of Branko Bračko (until 28 May) and Jure Valjavec (from

29 May) as its chair, and Andrej Andoljšek, Peter Kavčič (until 28 May), Branko Gorjan (until 28

May), Igor Stebernak (from 29 May), Tomaž Benčina (from 1 September), Monica Cramer

Manhem (from 1 September), Tim Umberger (from 1 September) and Janja Strmljan Čevnja

(from 1 September) as its members.

The Nomination Committee

as an ad-hoc committee was established on 29 November 2023 due

to the expiry of the term of office of Supervisory Board member Igor Stebernak in 2024. The

Committee will operate until the election of a new Supervisory Board member, shareholder

representative, at the General Meeting of Shareholders, but not later than 4 June 2024. It is

composed of Andrej Andoljšek as chair, Jure Valjavec and Aleš Košiček as members, and Mateja

Lovšin Herič as the external member.

5.4

Governance and management of subsidiaries

The Triglav Group is comprised of Zavarovalnica Triglav as the controlling company, its

subsidiaries and associates, and joint ventures. 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 Group's governance system is proportionate to the nature, scope and complexity of the

Group's and individual company's business operations.

The Governance Policy of the Triglav Group's Subsidiaries

, which is the basis for the

establishment and implementation of the governance system, was not updated in 2023; its

revision is planned in early 2024. The governance system of subsidiaries is implemented through

the standardisation and unification of key rules and procedures in individual business segments

in the Group's subsidiaries, with the aim of applying unified minimum standards to the core

business, reporting and supervision at Group level. In its definitions, the policy, in addition to the

Group's internal environment and its strategic guidelines, also takes into account the factors of

the external environment, which includes the local legislative environment and regulators'

requirements, the business environment of individual subsidiaries and good business practices

of other institutions.

The governance system at Group level is implemented as corporate governance by actively

exercising the management rights held by the parent company and its subsidiaries in relation to

their subsidiaries in accordance with applicable legislation and internal regulations. Effective

monitoring and supervision of the operations of subsidiaries is ensured within the framework of

corporate governance at Group level. Such governance enables efficient and coordinated

operations and the achievement of synergies, especially through activities that promote

GRI 2-9.

cooperation in various fields, as well as facilitating the exchange of information and knowledge

within the Group.

The corporate governance system is structured so as to enable the parent company, acting as

the controlling entity at Group level, to conduct management activities within its direct

subsidiaries. In turn, these subsidiaries are responsible for implementing the governance system

and carrying out governance activities within their own subsidiaries.

At the parent company, the Group's governance system is implemented through the general

meetings of shareholders, the supervisory and management bodies of individual subsidiaries, as

well as the standardisation and unification of key rules and procedures in the areas of expertise

in subsidiaries by establishing uniform minimum standards in effective governance, reporting

and control at Group level. The Triglav Group Subsidiary Management Division, key functions,

relevant departments and business segments of the parent company are responsible and

competent for ensuring the effective implementation of the Group's governance system.

Through mutual cooperation, they establish and maintain an efficient and transparent Group

governance system.

In addition to the management bodies, the governance system of the parent company and

individual subsidiaries includes key functions. Depending on the specifics of the activity, each

subsidiary may have one or several key functions: the risk management function, the non-life

and life insurance actuarial functions, the compliance function and the internal audit function.

In the parent company and in each of its subsidiaries, the key functions carry out their tasks and

responsibilities independently of one another other.

Part of corporate governance also includes the coordination and preparation of strategy and the

design of the risk management system at Group level. In the context of the strategic guidelines,

each subsidiary implementing the Group's strategic activities has a defined strategy, usually for

a five-year period, based on which long-term and strategic activities are carried out. The principle

of monitoring the implementation of the strategy using balanced performance indicators, which

is adopted within the framework of the strategy, enables the supervisory authorities to monitor

the performance of the business on an ongoing basis and to take appropriate action in the event

of deviations from the plan.

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 the Group companies' operations and

business practices was continued and monitored throughout 2023. In the subsidiaries, this was

performed by the competent business segments of the parent company, connecting the

subsidiaries' business functions with Zavarovalnica Triglav's business segments and providing a

comprehensive overview at Group level.

In 2023, activities at the parent company focused on reviewing and upgrading the governance

and internal control systems within the Group. The systems of delegation of responsibilities, the

reporting lines, the allocation of functions within the Group, the remuneration policy, and the

fit and proper requirements were revised. The review of the governance and internal control

systems focused in particular on the risk management and internal control systems and, in this

context, on the roles and responsibilities of key functions. A set of measures and possible

upgrades to the governance system were identified, which are currently being translated into

implementation and will be reasonably summarised in the revised Governance Policy of the

Triglav Group's Subsidiaries.

The Company has in place and is implementing a robust and reliable governance system for the

Triglav Group, which is both appropriate and compliant with statutory requirements and

comparable to other insurance groups.

The composition of management and supervisory bodies as at 31 December 2023

Subsidiary

Management

Supervisory function

Slovenia

Pozavarovalnica Triglav Re d.d., Ljubljana

Gregor Stražar – President

Supervisory Board:

Tomaž Rotar – Member

Tadej Čoroli – Chairman

Stanislav Vrtunski – Member

Nataša Veselinović, Katja Modec,

Janko Šemrov

Triglav, Zdravstvena zavarovalnica d.d.,

Meta Berk Skok – President

Supervisory Board:

Ljubljana

Tomaž Žust – Member

Uroš Ivanc – Chairman

Nataša Veselinović, Tomaž Krevatin

Triglav, pokojninska družba d.d., Ljubljana

Aljoša Uršič – President

Supervisory Board:

Peter Krassnig – Member

Blaž Jakič – Chairman

Vida Šeme Hočevar – Member

Blaž Kmetec, Nataša Veselinović, Miha Grilec,

Miran Kalčič, Vesna Vodopivec,

Borut Simonič, Tomaž Jontes

Triglav Skladi, družba za upravljanje d.o.o.,

Ljubljana

Benjamin Jošar – President

Supervisory Board:

Andrej Petek – Member

Blaž Jakič – Chairman

Miha Grilec – Member

Jaka Kirn, Nataša Veselinović, Marica Makoter,

Barbara Gorjup, Miran Kraševec

Triglav Svetovanje, zavarovalno zastopanje

d.o.o., Domžale

Tomaž Dvořak – Director

Supervisory Board:

Maja Benko – 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

Janez Obaha – Director

Supervisory Board:

Boris Kuhelj – Director

Matej Ferlan – Chairman

Nataša Novak Priveršek, Jaka Klement

Triglav, Upravljanje nepremičnin d.o.o.,

Ljubljana

Rok Pivk – Director

Supervisory Board:

Marica Makoter – Chairwoman

Ksenija Zajc, Nataša Novak Priveršek

Croatia

Triglav Osiguranje d.d., Zagreb

Vilma Učeta Duzlevska – President

Supervisory Board:

Darko Popovski – Member

Uroš Ivanc – Chairman

Lidija Pecigoš Višnjić – Member

Tedo Djekanović, Gorazd Jenko,

Alenka Vrhovnik Težak, Pave Srezović-Pušić

Serbia

Triglav Osiguranje a.d.o., Belgrade

Dragan Marković – President of the

Supervisory Board:

Executive Committee

Tedo Djekanović – Chairman

Ivan Grujić – Member of the Executive

Fejsal Hrustanović, Vuk Šušić,

Committee

Gorazd Jenko, Milan Tomaževič

Montenegro

Lovćen Osiguranje a.d., Podgorica

Matjaž Božič – Chief Executive Officer

Board of Directors:

Stanko Mugoša – Executive Director

Tedo Djekanović – Chairman

Tomaž Žust, Alenka Vrhovnik Težak,

Marjeta Koščak, 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

Supervisory Board:

Emir Krivošija – Member

Tedo Djekanović – Chairman

Janko Šemrov, Ivica Vulić,

Aleš Levstek, Gorazd Jamnik

Triglav Osiguranje a.d., Banja Luka

Janez Rožmarin – Director

Management Board:

Dejan Vujičić – Member of the Executive

Committee

Mithad Salčin – President

Dragan Berić – Member of the Executive

Committee

Emir Čaušević, Gregor Railić

North Macedonia

Triglav Osiguruvanje a.d., Skopje

Gjorgje Vojnović – Chief Executive Officer

Board of Directors:

Vojdan Jordanov – Executive Director

Tedo Djekanović – Chairman

Darko Popovski, Matej Ferlan,

Blaž Kmetec, Gjorgje Vojnović,

Vojdan Jordanov, Gjorgji Jančevski

Triglav Osiguruvanje Život a.d., Skopje

Hristina Đambazovska Anastasov – Chief

Board of Directors:

Executive Officer

Tedo Djekanović – Chairman

Ivan Sotošek, Vilma Učeta Duzlevska,

Gjorgji Jančevski, Vladimir Mišo Čeplak,

Hristina Đambazovska Anastasov

Triglav penzisko društvo a.d., Skopje

Tihomir Petreski – President

Supervisory Board:

Marijan Nikolovski – Member

Aljoša Uršič – Chairman

Rok Pivk, Blaž Kmetec, Miroslav Vujič

5.5

External and internal audit

The financial statements of the Triglav Group and Zavarovalnica Triglav are audited by Deloitte

revizija d.o.o., which was appointed in 2022 for the second time in a row for a three-year period.

The auditor reports its findings to the Management Board, the Supervisory Board and the Audit

Committee.

The report on the work of the Internal Audit Department is presented in Section

9.1 Risk

management system.

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 Section

9. of Risk management

. The system was set up in all organisational levels and processes and

includes:

▪

a clear organisational structure with a precisely defined and transparent system of duties,

responsibilities 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.

The accuracy, completeness and timeliness of financial reporting as well as compliance with

applicable regulations are ensured by the internal control system established by the parent

company and implemented at all Group levels. 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.

The processes for identifying, assessing, monitoring and managing tax risks are described in

more detail in Section

2.11 Tax policy of the Accounting Report

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 did not enter 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

Uroš Ivanc

Management Board

Member

Tadej Čoroli

Management Board

Member

Marica Makoter

Management Board

Mamber

Blaž Jakič

Management Board

Member

The share and shareholders of Zavarovalnica Triglav

Zavarovalnica Triglav's share recorded a total return of 7.8%.

For the eighth time in a row, the Triglav Group has been assigned an "A" credit rating with a

stable medium-term outlook.

There were no significant changes in Zavarovalnica Triglav's shareholder structure.

In challenging business conditions, extra emphasis was placed on delivering pertinent

information and keeping lines of communication open with investors, shareholders and

analysts.

6.1

Share of Zavarovalnica Triglav

Zavarovalnica Triglav's share (ZVTG), which is listed on the Ljubljana Stock Exchange Prime

Market, has been traded since the end of 2008. In terms of market capitalisation, the Company

was

the fourth largest Slovenian listed company

in 2023. Its market capitalisation of EUR 788.9

million (index 101) accounted for 17% of the stock market of the Ljubljana Stock Exchange.

In challenging business conditions that impacted the ZVTG share price, its

total annual return

was

7.8%

and the dividend yield was 7.2%. The price-to-book ratio was 0.9.

The trading volume on the Ljubljana Stock Exchange in 2023 fell by 26% compared to the

previous year. The ZVTG share trading volume excluding block trades amounted to EUR 25.4

million, down by 9%, making ZVTG the

third most liquid share on the Ljubljana Stock Exchange

Over a quarter of ZVTG share turnover was carried out by

the liquidity provider

, which has

rendered its services for the Company since 2019.

Key figures relating to the ZVTG share (EUR)

Items

2023

2022

Maximum closing price

40.30

41.40

Minimum closing price

29.20

31.40

Closing price as at 31 December

34.70

34.50

Book value per share (parent company)*

29.44

28.98

Book value per share (consolidated data)*

39.19

39.45

Net earnings per share (consolidated data)*

0.71

-0.30

Market capitalisation as at 31 December

788,909,636

784,362,606

Average daily turnover (excluding block trades)

102,764

113,291

Dividend per share

2.50

3.70

Number of shares

22,735,148

Percentage of free float

30.73%

Traded on

Ljubljana Stock Exchange – LJSE

ISIN

SI0021111651

Ticker symbol

ZVTG

Bloomberg

ZVTG SV

Reuters

ZVTG.LJ

Credit rating (S&P Global Ratings, AM Best)

stable medium-

term outlook

"A", stable medium-

term outlook

Notes on the effects of the transition to IFRS 17 and IFRS 9 are provided in

Section 2.6 of the Accounting report.

Movement in the ZVTG share price in 2023 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 2022 = 100)

The published annual results of the previous year positively influenced the ZVTG share price at

the beginning of the year. However, two one-off events had a negative effect later on in the year.

The Triglav Group's operations and, consequently, the share price were affected by changes to

Slovenia's supplemental health insurance system implemented at the end of April and extreme

natural disasters at the beginning of the third quarter. The Company paid dividends to the

eligible shareholders on the cut-off date of 20 June 2023 (see sections

5.3.1 General Meeting of

Shareholders

and

6.4 Dividends and the dividend policy

for more information). As shown in the

figure above, the ZVTG price share in 2023 remained at the same level as at the end of the

preceding year. The Ljubljana Stock Exchange SBITOP index, in which the ZVTG share holds a

10.2% share, rose by 20% and the STOXX Europe 600 Insurance sectoral index of 35 shares of

European insurance companies grew by 9%.

101%

109%

120%

109%

101%

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 2018 = 100)

6.2

Equity

As at 31 December 2023, Zavarovalnica Triglav's

share capital

remained unchanged and

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, Zavarovalnica Triglav's existing and potential shareholders 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%;

156%

136%

115%

▪

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 to Zavarovalnica Triglav's shareholder structure in 2023.

The

stakes of the top three shareholders remained unchanged. The two funds owned by the Republic

of Slovenia (ZPIZ Slovenije and SDH d.d.) together held together a 62.6% stake and the Croatian

pension fund, which appears in the Company's share register on the fiduciary account of its

custodian bank, held a 6.7% stake.

The Company's

free float

, representing shares held by shareholders with less than a 5%

participating interest, stood at 30.7%, remaining stable. As at 31 December 2023 it was dispersed

among 8,453 shareholders from 30 countries, among them

around 40 international banks with

fiduciary accounts held by their clients and international institutional investors

mostly from

Europe and the USA. They held a 15.7% stake (0.5 percentage point less than a year earlier), while

the share of

Slovenian institutional shareholders

stood at 8.3% (0.2 percentage point less).

The gradual increase in the ownership by

natural persons

continued in 2023, with their share

increasing by 0.7 percentage point to 13.5%. Along with the increased ownership stake, natural

persons have been more actively trading in ZVTG shares, which the Company encourages with a

targeted programme of activities as part of its investor relations.

GRI 2-1, 2-6.

Zavarovalnica Triglav's shareholder structure as at 31 December 2023

Source: Centralna klirinško depotna družba

Zavarovalnica Triglav’s top ten shareholders as at 31 December 2023

Source: Centralna klirinško depotna družba

The minority shareholder structure of Zavarovalnica Triglav by the country of origin as at 31

December 2023 (the share of the free float in %)

62.6%

15.7%

13.5%

8.3%

Two funds owned by the Republic of Slovenia

International shareholders

Retail investors

Slovenian institutional shareholders

0.34%

0.37%

0.38%

0.71%

1.02%

2.06%

2.44%

6.71%

28.09%

34.47%

State Steet Bank and Trust, USA - fiduciary account

Tinfin, Slovenia

Forplan, Slovenia

Clearstream Banking SA, Luxembourg - fiduciary account

Hrvatska poštanska banka, Croatia – fiduciary account

Citibank, Great Britain – fiduciary account

Unicredit Bank Austria, Austria – fiduciary account

Erste Group Bank - PBZ Croatia Osiguranje, Austria – fiduciary account

SDH, Slovenia

ZPIZ Slovenije, Slovenia

Ownership in %

From other 20 countries: 0.6%

Sweden: 0.3%

UAE: 0.3%

Hungary: 0.4%

Czech Republic: 0.5%

USA: 1.7%

Luxembourg: 2.3%

Great Britain: 6.9%

Croatia: 7.6%

Austria: 8.4%

Slovenia: 70.8%

In 2023, ZVTG shares were bought by President of the Management Board Andrej Slapar and

Management Board members Uroš Ivanc and Tadej Čoroli.

The number of shares held by the members of the Management and Supervisory Boards as at 31

December 2023

6.4

Dividends and dividend policy

The dividend policy

is the Company's steadfast commitment to its shareholders. In recent years,

the implementation of the dividend policy has been affected by the COVID-19 pandemic, which

the Management Board and the Supervisory Board had to take into account in their proposal for

the distribution of the Company's accumulated profit. The General Meeting of Shareholders

supported their proposals every year. On 6 June 2023, the General Meeting of Shareholders

adopted the proposal to distribute 51% of the consolidated net profit for 2022 for dividends or

EUR 2.50 gross per share, i.e. EUR 56.8 million in total. As at the dividend payout date, the

dividend yield was 7% (see Section

5.3.1 General Meeting of Shareholders

for more information).

Zavarovalnica Triglav's dividend policy

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

9.2 Capital position

First and last name

Function

Number of shares

Participating

interest

Management Board

5,589

0.02%

Andrej Slapar

President

1,350

0.01%

Uroš Ivanc

Member

775

0.00%

Tadej Čoroli

Member

450

0.00%

Marica Makoter

Member

150

0.00%

Blaž Jakič

Member

2,864

0.01%

Supervisory Board

280

0.00%

Andrej Andoljšek

Chairman

0.00%

Igor Stebernak

Vice chairman

0.00%

Tomaž Benčina

Member

0.00%

Jure Valjavec

Member

280

0.00%

Monica Cramer Manhem

Member

0.00%

Tim Umberger

Member

0.00%

Aleš Košiček

Member

0.00%

Janja Strmljan Čevnja

Member

0.00%

Total Management Board and Supervisory Board

5,869

0.03%

Gross dividend per share by year (EUR) and its share of consolidated net profit for the preceding

year for the dividend payment in 2013–2023

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, it follows best

international practices and, as a company listed on the Ljubljana Stock Exchange Prime Market,

helps to shape the standards of this market.

The Company aims to provide

clear and consistent information to the market

. All key

information about the Company's operations, position and outlook is regularly published both

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 actively fosters open and constructive relationships with its shareholders,

investors and analysts. Furthermore, it aims to achieve the highest possible

participation in the

general meetings of shareholders

. In 2023, 77% of all shares with voting rights were represented

at the General Meeting of Shareholders (see Section

5.3.1 General Meeting of Shareholders

for

more information).

In the reporting period, the Company mainly communicated with

institutional investors and

shareholders

, predominantly via videoconferencing meetings, conference calls and email.

The

calendar of all 11 investor events attended by the Company

, along with related presentations,

is available on the Company's website. Among them are also four presentations of business

results for international and Slovenian institutional investors, which were held by the Company

every quarter following the announcement of business results.

The attention dedicated to

retail investors

led to a subsequent growth in their stake in the

Company. Last year, the Company presented the ZVTG share at two events held by the Ljubljana

Stock Exchange aimed at raising financial literacy of retail investors and jointly promoting

Ljubljana Stock Exchange Prime Market shares.

For inquiries from shareholders, investors and analysts, please use the contact information

provided below.

GRI 2-29.

2.0

1.7

2.5

1.7

3.7

2.5

63%

56%

67%

64%

69%

82%

70%

53%

74%

51%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Gross dividend per share (in EUR)

% of consolidated net profit for the previous year

Information for shareholders:

Zavarovalnica Triglav, d.d., Ljubljana

Miklošičeva cesta 19, 1000 Ljubljana

Helena Ulaga Kitek, Director of Investor Relations Department

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. In 2023, the Group was again assigned

"A" stand-alone credit rating with a stable medium-term outlook

by both agencies. All individual

elements of the overall credit rating were rated

as high as the year before

and substantiated in

a similar way.

Credit ratings of Zavarovalnica Triglav since 2008

Year

Credit

rating

Medium-term outlook

Rating agency

2023

Stable

AM Best

S&P Global Ratings

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

The "A" credit rating assigned by S&P

exclusively reflects the Triglav Group's standalone credit

profile. Its business risk profile was assessed again as strong and its financial risk profile as very

strong. The medium-term outlook reflects S&P's expectations that at least over the next two

years the Group will continue to effectively implement its business strategy of profitable growth

by further diversifying premiums and realised income streams. Despite increased natural

catastrophe claims, the discontinuation of supplemental health insurance in Slovenia and

macroeconomic conditions, the Group is expected to maintain capitalisation at least at the "AA"

range (of S&P's capital model), while effectively improving its performance results.

The latest credit rating reports, i.e. the announcements of both credit rating agencies from 2023,

are available on the website

www.triglav.eu

under the Investor Relations tab.

6.7

Bonds of Zavarovalnica Triglav

As part of the Group's regular capital management to ensure its optimal composition and cost

efficiency, the Company issued a subordinated bond in 2019, which is taken into account in its

capital adequacy. It replaced the bond that matured on 21 March 2020. See the table below for

more information.

Bond of Zavarovalnica Triglav

ISIN

XS1980276858

Bond type

Subordinated bond (Tier 2) issued in line with the Solvency II regulation

Issue size in EUR

50,000,000

Currency

EUR

Coupon rate and payment

Fixed at 4.375% p.a. until first call date, payable annually

Thereafter variable at 3-month Euribor + 4.845% (equal to the original

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

Rating

BBB+ (S&P)

Macroeconomic environment and insurance markets

The Regulatory changes to Slovenia's healthcare system had a negative impact on the

Triglav Group's business result.

Gross claims were higher, mainly due to major CAT events and claims inflation.

The investment result was positive due to the more favourable situation in the financial

markets. Both assets under asset management and financial instruments increased.

The Triglav Group maintained its leading market position among insurance groups in

Slovenia and Montenegro. Its market shares grew in the insurance markets of Slovenia,

Serbia and Republika Srpska.

Total written premium increased in most insurance markets.

7.1

The general economic environment worldwide and in Slovenia

The global economy was characterised by a slowdown in activity and a marked decline in

headline inflation over the year. The ongoing war in Ukraine, now surpassing a year, coupled

with the recent escalation of conflict between Israel and Hamas in the Middle East in October,

has significantly heightened global uncertainty. While real GDP grew moderately in the US, it

stagnated in the euro area. According to the latest estimates, the euro area even slipped into a

mild technical recession in the second half of the year. The manufacturing sector experienced a

slowdown throughout the year, while the service sector declined sharply after a strong

expansion in the first half of the year. Loans to the corporate sector and households also declined

significantly. Despite tightening financing conditions and weakening demand, the labour

market situation remained very favourable. At 6.4%, unemployment reached a record low

several times throughout the year. Considerably lower energy prices gradually lowered headline

inflation, while core inflation remained high.

According to the latest estimates by international institutions in December, headline inflation in

the euro area is expected to stand at 5.5% in 2023, with a real GDP growth of 0.5%. In 2024,

inflation is forecast to fall slightly further to just 2.5%, while real GDP growth is expected to be

similarly modest as in 2023. Analysts point in particular to the uncertainty caused by geopolitical

events and their impact on energy prices and the global economy in general. They also link the

uncertainty to the cooling of China's economy, the impact of tighter financial conditions and the

increasing number of natural disasters resulting from global warming.

In Slovenia, economic activity was subdued. International trade fell markedly due to lower

demand abroad and higher cost pressures. The decline in the purchasing power of households

and their greater caution also contributed to low growth in private consumption. The recovery

from the August floods stimulated construction activity, whereas higher interest rates and the

international economic slowdown held back investment in equipment and machinery.

Government consumption remained relatively restrained despite an increase in flood mitigation

expenditure. The labour market situation, as elsewhere in Europe, was extremely favourable,

with unemployment below 4%, the lowest on record. According to the Bank of Slovenia's latest

estimates, as a result of funding post-flood recovery, the general government deficit (at 3.7% of

GDP) increased slightly compared to the initial estimates, while the gross government debt (at

69.5% of GDP) remained almost unchanged compared to the previous year.

According to the Bank of Slovenia's December forecast, real GDP growth in Slovenia was 1.3% in

2023 and is expected to be slightly stronger next year at 2.2%. Headline inflation will be

significantly lower, at 3%, reaching 7.4% in 2023, according to the Slovenian Statistical Office.

The forecasts are accompanied by uncertainties stemming from the economic recovery in the

international environment, and in the domestic environment primarily due to salary and

inflation growth, as well as the erosion of Slovenia's export competitiveness.

In 2023, financial markets were characterised by rising central bank interest rates and, towards

the end of the year, by a larger fall in the required yield on government bonds. Major real estate

markets also recorded a decline, whereas equity markets mostly reported strong growth.

Financial markets were shaken in March by the collapse of the US banks SVB and Signature Bank,

followed shortly afterwards by the sale of Credit Suisse. The general uncertainty was also

heightened in May by the negotiations on the US debt ceiling and in August by Fitch's downgrade

of the US sovereign credit rating to AA+.

The US Federal Reserve (Fed) and the European Central Bank (ECB) raised interest rates

throughout the year, but slowed down and ultimately ended the hikes in the second half of the

year. The Fed raised the target rate by 0.25 percentage point four times and has not changed it

since July, keeping it within the range of 5.25–5.50%. The ECB raised its interest rates twice by

0.50 percentage point and four times by 0.25 percentage point and has not changed its deposit

rate of 4.00% since September. At a press conference in December, the chair of the Federal

Reserve indicated, for the first time, the possibility of a reduction in the target interest rate, while

his European counterparts have not expressed a willingness to discuss a rate cut yet.

Bond markets were quite highly volatile. The required yield on the 10-year German government

bond peaked at close to 3% in early October. Later, it fell sharply to end at 2.02%, a good half a

percentage point below the level at the beginning of the year. The Slovenian bond experienced

an even slightly higher drop in the required yield, ending the year at 2.95%. The negative

difference between the required yield on the 10-year and the 2-year German Bund increased to

–0.37 percentage point. The negative slope of the interest rate curve reached a record high of –

0.87 percentage point in June. Credit spreads on corporate bonds jumped sharply in March amid

the turmoil in the banking sector, but subsequently fell back to levels below the year's baseline

value.

The sentiment on stock markets was largely positive. More notable declines were recorded in the

summer, but the indices of developed countries successfully recovered these losses by the end

of the year. The Japanese NIKKEI index took the lead with a 28.2% growth, followed by S&P 500

and Euro Stoxx 50 with 24.2% and 19.2% respectively. The Slovenian SBITOP index achieved a

similar 19.8% growth. Emerging market indices underperformed, with China's Hang Seng index

dropping by 13.8%.

7.2

Environmental impact on the Triglav Group’s operations

For a second consecutive year, high inflation had an impact on the increase in prices of materials

and services and therefore on higher gross claims paid and operating expenses. Due to

inflationary pressures, sums insured and premium rates were adjusted in most non-life

insurance classes. See Section

4.1 Today's challenges and opportunities

and Section

9. Risk

management

for more information about the impact of inflation.

The high growth in claims incurred was driven by both significantly higher claims frequency and

claims inflation. The higher number of settled claims in the reporting period also resulted from

supply chains becoming re-established.

The Group's business result was impacted by major CAT events in a total estimated value of EUR

212.2 million (compared to EUR 32.1 million in 2022). According to estimates, hailstorms in

GRI 201-2, SASB: FN-IN-450a.2.

Slovenia resulted in EUR 85.6 million in claims, while the August storms with floods caused EUR

77.0 million in claims. Most of the other countries in which the Group operates were also

affected by hailstorms, strong wind and floods, with the largest claims recorded in Croatia (EUR

14.1 million) and Serbia (EUR 7.9 million). The Group also had EUR 27.3 million of estimated

reinsurance claims resulting from the February earthquake in Turkey, floods and hailstorms in

Italy, Doksuri and Saola typhoons in China, storm Hans in Scandinavia, the September floods in

Greece, the earthquake in Morocco and hurricane Otis in Mexico.

The more favourable financial market situation had a positive impact on the investment result,

with an increase in assets under asset management and financial instruments. See Section

8.4

Asset Management and Other non-insurance operations

for more details.

In 2023, the Group's operations in the health insurance segment were most affected by the

termination of supplemental health insurance as part of the reform of Slovenia's healthcare

system and by setting the maximum price of supplemental health insurance premium by a

decree of the Slovenian Government from May to the end of 2023. The negative effects of the

price cap on supplemental health insurance were reflected in the negative operating result. See

Section

8.3 Health segment

for details.

7.3

Global insurance market

According to latest official data from Swiss Re reinsurance company, total premium volume on

the global insurance market

in 2022 reached USD 6.8 trillion, recording a

1.1% decline in real

terms

(with nominal growth at 0.3%). Non-life insurance premium increased by 0.5%, whereas

life insurance premium decreased by 3.1%. Advanced markets, which account for 81% of the

global insurance premium, recorded a 1.8% decline in premium, whereas emerging markets

achieved a 2.1% premium growth. The written premium in the euro area was 7.4% lower in real

terms compared to the previous year.

At 43.7%, the US holds the largest global market share, which further increased in 2022 (2021:

40.3%), followed by China (10.3%), with the UK moving up to third place (5.4%) and Japan

ranking lower than the previous year (5.0%). The global market shares of France and Germany

stood at 3.9% and 3.6% respectively.

Cyclical slowdown, high inflation and geopolitical uncertainties cloud the outlook for the

insurance industry. Inflation remains the top risk for insurers, as it increases claim payments and

thus premium increases, reducing household disposable income and demand. Nevertheless,

Swiss Re estimates that the insurance industry is resilient and that global premium volume will

grow by 1.1% in real terms in 2023, reaching an all-time high (USD 7.1 trillion). In 2024, premium

growth is expected to be even slightly higher, at 1.7% (both figures are lower than the 10-year

average growth of 2.6%). Non-life insurance will record higher growth.

Real global insurance premium growth in 2021–2024

Source: Swiss RE, SIGMA 3/2023

7.4

Triglav Group key markets

The Triglav Group sells insurance in seven insurance markets in six countries: in the Adria region

in Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia. The

Group also operates in the wider international environment via its branch in Greece and

partnerships with foreign insurance brokerage and agency companies as well as with reinsurers.

The most developed market in the Adria region is Slovenia's insurance market, where

Zavarovalnica Triglav and the specialised insurers Triglav, Zdravstvena zavarovalnica and Triglav,

pokojninska družba are active. Other insurance markets remain relatively underdeveloped,

maintaining great potential for growth. They continue to be dominated by motor vehicle

insurance, but recently solid growth has been observed in other insurance classes, especially

health and real property insurance. Pozavarovalnica Triglav Re operates throughout the region

and in the wider international environment.

Gross written premium growth was recorded in all insurance markets in the region, except in

Croatia's market (see Section

8. Operations of the Triglav Group and Zavarovalnica Triglav

for

more information). The markets in Serbia, Bosnia and Herzegovina, and Slovenia achieved the

highest relative growth.

Main macroeconomic data for 2023 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

3.8

6.6

0.6

3.5

2.1

444.2

GDP growth (estimate in %)

2.0

2.7

2.0

4.5

2.0

2.5

0.7

2023 GDP (estimate in USD billion)

68.4

80.2

75.0

7.1

26.9

15.8

18,351.1

2023 GDP per capita (estimate in USD)

32,350

20,876

11,301

11,339

7,778

7,672

56,974.8

2023 inflation rate (estimate in %)

7.4

8.6

12.4

8.3

5.5

10.0

6.5

2023 unemployment rate (estimate in %)

3.6

6.3

9.1

11.8*

15.3

14.3

n.a.

Source: International Monetary Fund (IMF), World Economic Outlook, October 2023, * Agency for Statistics of Montenegro (Q3 2023)

GRI 2-6.

3.4%

2.7%

4.4%

-1.1%

0.5%

-3.1%

1.1%

1.4%

0.7%

1.7%

1.8%

1.5%

Total

Non-life insurance

Life insurance

2021

2022

2023 estimate

2024 forecast

The Triglav Group continues to be the leader among insurance groups in Slovenia and

Montenegro, and ranks third in North Macedonia and the Federation of BiH. Its market share

grew in the insurance markets of Slovenia, Serbia and Republika Srpska.

Market shares and market position of the Triglav Group in the Adria region in 2023

Market

Market share

Market share trend

Ranked in 2023

Ranked in 2022

Slovenia

39.5%

+ 0.6 percentage point

Croatia**

5.2%

- 0.3 percentage point

Serbia*

7.5%

+ 0.2 percentage point

Montenegro

35.0%

- 2.8 percentage point

Bosnia and Herzegovina

9.3%

- 0.1 percentage point

- Federation of BiH

10.6%

- 0.2 percentage point

- Republic of Srpska***

6.6%

+ 0.3 percentage point

North Macedonia

13.4%

- 1.3 percentage point

Data for January-September 2023

Market share calculations for the Croatian insurance market are based on premium paid.

*** Including the market shares of Triglav Osiguranje, Banja Luka and the branch of Triglav Osiguranje, Sarajevo in Banja Luka.

Presented below are the characteristics of individual markets and the market position of Group

members.

7.4.1

Slovenia's insurance market

Although relatively small, Slovenia's insurance market is well developed. On a global scale, in

2022 Slovenia ranked 30th by premium per capita (32nd in the preceding year) and 29th by

insurance penetration (premium as percentage in GDP), which is two ranks higher than the year

before. Slovenia's insurance market ranked 56th by written premium (59th in the preceding

year), accounting for 0.04% of the global insurance market and 0.3% of the EU insurance market

(Swiss Re data for 2022).

Premium per capita and market penetration for Slovenia and some other European countries in

2022

Premium per capita

Insurance penetration

(in EUR)

World rank

(% of GDP)

World rank

Slovenia*

1,329

4.8%

Croatia

433

2.6%

Serbia

168

1.9%

Switzerland

6,041

6.9%

United Kingdom

4,538

10.5%

Austria

2,147

4.3%

Czech Republic

751

2.9%

Poland

388

2.2%

Turkey

146

1.5%

European Union

2,256

6.4%

Euro area

2,575

6.6%

Source: Swiss RE, SIGMA 3/2023

* Data for Slovenia: Slovenian Insurance Association (SZZ)

In 2022, the average premium per capita (insurance density) in Slovenia increased to EUR 1,329,

reaching its peak value to date. Premium as percentage of GDP fell to 4.8% in 2022 (2021: 5.0%),

reaching its bottom since 2000 as a result of Slovenia's high GDP growth. Nevertheless, the

insurance industry remains one of the most important economic sectors.

Development of Slovenia's insurance market

Premium per capita (data for 2022)

EUR

1,329

Premium as percentage in GDP (data for 2022)

4.8

Insurance market growth index in 2023

109.1

Source: Slovenian Insurance Association (SZZ)

In 2023, a total of

13 insurance companies, five foreign branches and two reinsurance companies

operated in Slovenia's insurance market, all members of the Slovenian Insurance Association

(SZZ). A new insurance company, Groupama Biztosító Zrt. branch, has been operating in

Slovenia's insurance market since July 2022. There were nine composite and nine specialised

insurers (life, health and non-life insurance) operating in Slovenia. These data exclude direct

insurance transactions of insurers from other EU Member States (FOS).

In 2023, insurance companies collected

EUR 3.1 billion

in gross written insurance, coinsurance

and reinsurance premiums,

up by 9.1%

relative to the previous year (this calculation does not

take into account internal transfers of assets for the payment of pension annuities).

Non-life

insurance premium

rose by 10.0% and represents a 75.1% share. Motor vehicle insurance

contributed the most to the increase with 21% growth, which was also influenced by the

premium increase and the larger volume of premium written through FOS transactions and

branches.

Life insurance premium grew

by 6.6%, with all insurance classes recording growth.

Health insurance premium

, which is taken into account in non-life insurance premium, dropped

by 3.3%.

Slovenia's insurance market continues to be highly concentrated, with the four largest insurers

holding a 76% market share.

Zavarovalnica Triglav

remains the market leader with a 31.6%

market share (compared to 30.5% in the previous year), followed by Zavarovalnica Sava with a

17.5% market share. Among insurance groups,

the Triglav Group

(the parent company, Triglav,

Zdravstvena zavarovalnica and Triglav, pokojninska družba) holds the dominant position, having

increased its market share to 39.5%, followed by the Sava Insurance Group (Zavarovalnica Sava

and Vita) with a 20.9% market share.

Triglav, Zdravstvena zavarovalnica

increased its market

in the health insurance segment

to 31.5% (compared to 30.1% as at 31 December 2022).

The market share of the Triglav Group and Zavarovalnica Triglav in Slovenia in 2023 and premium

growth of Slovenia's market and the Triglav Group

Triglav Group

Zavarovalnica Triglav

Growth index 2023/2022

Market

Change

Market

Change

Slovenian

market

Triglav

Group

Non-life insurance

42.1%

+0,8 p.p.

33.2%

+1,6 p.p.

110.0

112.2

Non-life insurance - excluding health insurance

46.1%

-0,3 p.p.

46.1%

-0,3 p.p.

116.3

115.6

Health insurance

31.7%

+1,4 p.p.

0.2%

0,0 p.p.

96.7

101.1

Life insurance

31.8%

-0,4 p.p.

26.9%

-0,5 p.p.

106.6

105.1

Total

39.5%

+0,6 p.p.

31.6%

+1,1 p.p.

109.1

110.7

The market shares of insurers and insurance groups in Slovenia in 2023

Source: Slovenian Insurance Association (SZZ).

7.4.2

Croatia

After joining the Schengen area and the euro area, Croatia achieved economic growth of 2.7% in

2023. Inflation, despite a slight decline, stagnated at a high 8.6%, while the unemployment rate

has fallen slightly to 6.3%.

Economic growth benefited from strong growth in tourism, boosted by enhanced European

integration, a recovery in household consumption and investment activity supported by EU

funding programmes. Contrary to expectations, real export activity declined slightly due to the

cooling of the economies of key trading partners.

Moderate economic growth (2.6%) is expected for the year ahead, which will be tested mainly

by inflation (IMF forecast: 4.2%) and its pressures on real income, as well as external demand

and investment activity. The labour market will continue to encounter challenges, particularly

regarding the ongoing shortage of skilled workers, which has persisted since EU accession. The

year 2024 is an election year in Croatia, with presidential, parliamentary and EU elections.

Insurance market

Development of Croatia's insurance market

Premium per capita (data for 2022)

EUR

433

Premium as percentage in GDP (data for 2022)

2.6

Insurance market growth index in 2023

107.1

Source: Swiss RE, SIGMA 3/2023, Croatian Insurance Bureau

As at 31 December 2023, a total of 14 insurance companies were active in Croatia's market (nine

composite insurers, four non-life insurers and one life insurer), one less than in the previous year,

as Wüstenrot životno osiguranje merged with Merkur osiguranje. Their total written premium

was 7.1% higher than the year before (as of this year, market share calculations for Croatia's

insurance market are based on premium paid). Non-life insurance premium increased by 13.8%,

whereas life insurance premium fell by 15%. In total written premium, non-life insurance

premium rose to 81.6% (compared to 76.8% in the preceding year), while life insurance

accounted for the rest.

Market concentration continued to be high, with top three insurers controlling more than 50%

of the market. With a 25.1% market share, Croatia osiguranje maintained its dominant position

39.5%

20.9%

16.9%

10.0%

5.0%

1.9%

5.7%

Triglav Group

Sava Insurance Group

Generali

Vzajemna

Modra zavarovalnica

Merkur

Other insurance companies

(1.6 percentage points more than in the preceding year). With a 5.2% market share, down by 0.3

percentage point relative to the year before,

Triglav Osiguranje, Zagreb

ranked eighth (seventh

in the previous year).

7.4.3

Serbia

Recessionary pressures in the euro area and uncertain global economic growth outlook led to a

slight downward revision of Serbia's initial GDP growth estimate for 2023 to 2.0%. The annual

inflation rate reached 12.4% (IMF estimate), driven by high cost pressures, primarily stemming

from the international environment, and the unemployment rate declined to 9.1%.

The lower-than-targeted economic growth was mainly driven by a slowdown in the construction

sector, due to rising prices of materials, and lower growth in the agricultural sector, due to

drought. However, foreign direct investment in high-value-added sectors shows great potential

in the period ahead.

Looking forward, Serbia will need to maintain a stable economy while promoting sustainable

growth and managing inflation effectively. Continued investment in infrastructure and

digitalisation is expected to bolster economic growth, with the global economic situation and

international events playing an important role.

Insurance market

Development of Serbia's insurance market

Premium per capita (data for 2022)

EUR

168

Premium as percentage in GDP (data for 2022)

1.9

Insurance market growth index in Q1-Q3 2023

116.3

Source: Swiss RE, SIGMA 3/2023, National Bank of Serbia

Serbia's 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 four insurers (Dunav, Generali Osiguranje, DDOR and Wiener) control almost two thirds of

the market. Total written premium increased by 16.3% in the first nine months of 2023. Non-life

insurance premium recorded 19% growth, while life insurance premium growth stood at 5.9%.

In total written premium, non-life insurance premium climbed to 81.5% (compared to 79.7% in

the preceding year).

Our insurer in Serbia,

Triglav Osiguranje

Belgrade

, increased its market share to 7.5% (compared

to 7.3% in the previous year), maintaining its fifth place. Its written premium growth was higher

than the Serbian insurance market growth (index 119.1).

7.4.4

Montenegro

According to the IMF, Montenegro's economy grew by 4.5% in real terms in 2023, whereas the

annual inflation rate declined slightly, but remained high at 8.3%. The unemployment rate was

11.8%.

Economic growth was mainly driven by social reforms and their impact on stimulating

household consumption. In addition, the positive impacts of a successful tourist season and

investment in tourism and energy infrastructure are clearly visible.

In the future, Montenegro will need to focus on a sustainable economic model by removing

obstacles to businesses entering its market and their growth, promoting trade and supporting

the workforce, with an emphasis on ensuring equal opportunities. In this context, enhancing the

effectiveness of public institutions and upholding the rule of law are also key for attaining a

higher standard of living and maintaining macroeconomic stability.

Insurance market

Development of Montenegro's insurance market

Premium per capita (data for 2022)

EUR

176

Premium as percentage in GDP (data for 2022)

1.9

Insurance market growth index in 2023

110.3

Source: Insurance Supervision Agency of Montenegro

As at 31 December 2023, a total of nine insurance companies were active in Montenegro's

insurance market (five non-life insurers and four life insurers). Total written premium was 10.3%

higher than the year before, with both non-life insurance and life insurance experiencing similar

growth rates. In total written premium, non-life insurance continued to account for the bulk

(80.2%).

The Triglav Group

, represented by

Lovćen Osiguranje

and

Lovćen životna osiguranja

, maintained

its leading position in the market, securing a 35.0% market share (compared to 37.8% in the

previous year). The Group is followed by Sava Osiguranje and Uniqa Group (non-life and life

insurance together) with a 17.3% and 15.7% market share respectively. The Group recorded 2.2%

premium growth.

7.4.5

Bosnia and Herzegovina

Bosnia and Herzegovina recorded a 2.0% GDP growth rate in 2023. The inflation rate fell from

14.0% in 2022 to 5.5%, while the unemployment rate remained very high at 15.3%.

Lower economic growth stemmed from decreased net exports and a decline in household

consumption attributed to lower purchasing power due to inflationary pressures. Going

forward, the country's priorities will include implementing structural reforms aimed at

enhancing the economy's competitiveness, particularly by alleviating fiscal burdens, simplifying

administrative procedures and curbing the emigration of skilled workers.

The geopolitical crisis caused by the Russian invasion of Ukraine was also reflected in the political

developments in Bosnia and Herzegovina, where internal political tensions temporarily

prevented the work of all institutions at federal level. In contrast, the government made some

progress in meeting the requirements for EU accession and the country's credit rating was

upgraded by one notch in August 2023.

Insurance market

Development of Bosnia and Herzegovina's insurance market

Premium per capita (data for 2022)

EUR

128

Premium as percentage in GDP (data for 2022)

1.9

Insurance market growth index in 2023

111.7

Source: FBIH Insurance Supervision Agency, RS Insurance Agency

As at 31 December 2023, 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

the BiH market rose by 11.7%. Premium written in the Federation of BiH grew by 9.8% and in

Republika Srpska by 15.8%. In total written premium, non-life insurance premium continued to

account for 79.8%.

In the Federation of BiH, the Agram corporate group (Adriatic osiguranje and Euroherc) remained

the market leader with a 23% market share.

Triglav Osiguranje, Sarajevo

held a 10.6% market

share (compared to 10.8% in the preceding year), ranking third (second the year before).

Holding a 12.2% market share, Grawe osiguranje was the market leader in Republika Srpska.

Triglav Osiguranje, Banja Luka

and

Triglav Osiguranje, Sarajevo branch

together increased their

market share to 6.6% (up by 0.3 percentage point year-on-year) and ranked fifth (seventh the

year before).

In Bosnia and Herzegovina,

the Triglav Group

reached a 9.3% market share (down by 0.1

percentage point year-on-year) and maintained its fourth place among the insurance groups. It

recorded 10.8% premium growth, which was slightly less than the insurance market growth.

7.4.6

North Macedonia

The IMF estimates that North Macedonia's economy grew by 2.5% in 2023. The annual inflation

rate persisted at a high 10.0%, driven by global economic developments and local corporate

profits, while the unemployment rate fell to 14.3%.

The lower-than-forecasted economic growth is primarily due to the impact of high inflation on

domestic consumption, restrictive monetary policy and lower foreign direct investment.

Inflation is expected to moderate in 2024 (IMF forecast: 4.3%), boosting consumption and

increasing public spending on EU-supported infrastructure projects. This, together with the

gradual recovery of the euro area, could have a positive impact on economic growth.

Going forward, North Macedonia will face especially the challenges of implementing structural

reforms to raise productivity and competitiveness. Its economic growth potential stems from

the anticipated enhanced regional integration, support for the transition to a green economy

and education of the labour force.

Insurance market

Development of North Macedonia's insurance market

Premium per capita (data for 2022)

EUR

113

Premium as percentage in GDP (data for 2022)

1.6

Insurance market growth index in 2023

112.2

Source: Insurance Supervision Agency of North Macedonia

A total of 16 insurance companies were active in North Macedonia's insurance market (11 non-

life insurers and five life insurers), of which Osiguruvanje Makedonija also holds a licence to

conduct reinsurance business. Total written premium in North Macedonia's insurance market

rose by 12.2% in 2023. Non-life insurance premium, representing 82.7% of total written

premium, grew by 12.8% and life insurance premium by 9.3%.

With its two companies, the

Triglav Group

achieved a 13.4% market share in North Macedonia's

market (compared to 14.7% in the previous year), retaining its third place among insurance

groups. Holding a 10.3% market share (down 1.6 percentage points year-on-year),

Triglav

Osiguruvanje, Skopje

continues to remain the leader in North Macedonia's insurance market.

The insurer specialises in non-life insurance, holding a 12.4% market share (compared to 14.4%

in the previous year).

Triglav Osiguruvanje Život, Skopje

significantly increased its share in the

life insurance market to 18.1% (compared to 16.1% in the previous year).

Financial result of the Triglav Group and Zavarovalnica

Triglav

The Triglav Group's total business volume grew by 12%, while the contractual service margin

increased by 28%.

In a challenging environment, the Group generated earnings before profit of EUR 21.1

million.

The deteriorated combined ratio in Non-Life and Health segments resulted from the price

cap on supplemental health insurance, CAT events and the effects of inflation.

Life and Asset Management segments performed well.

The favourable situation in the financial markets had a positive impact on the return on the

Group's investments.

The Triglav Group

operated in a challenging environment marked by CAT events, changes in

Slovenia's healthcare system and the ongoing effects of inflation. Taking into account the

negative impact of these one-off events, the Group achieved

earnings before tax

of EUR 21.1

million in 2023 (2022: EUR

−

10.0 million taking into account new accounting standards) and

net

earnings

of EUR 16.3 million.

By actively implementing its strategic guidelines, the Group increased its

total business volume

by 12% and

the contractual service margin

by 28%.

Other comprehensive income

was positive

and amounted to EUR 34.7 million, whereas in the previous year it was negative (EUR –50.9

million). This was mainly due to the favourable situation in the financial markets and, during the

year, to the tactical shorter average maturity of debt investments than liabilities, which resulted

in the positive change in the value of the Group's debt portfolio exceeding the change in the

value of the Group's liabilities.

Net return on equity

was 1.8%, reflecting lower net earnings.

Total business volume of the Triglav Group by segment (EUR million)

The Group's business performance was significantly impacted by CAT events, particularly

hailstorms and strong wind as well as August floods (see Section

7.2 Environmental impact on

the Triglav Group's operations

for more information), which led to a high growth in claims. The

gross impact of CAT events on the result that includes gross crop insurance claims and inward

reinsurance amounted to EUR 212.2 million, while the net impact, taking into account

reinsurance, is estimated at EUR 85.9 million. The effects of the claims inflation, which in

accordance with the new accounting standard already had a significant effect on the claims ratio

50.2

205.2

268.7

1,070.3

1,594.3

46.2

206.7

290.2

1,237.1

1,780.2

Other

Health

Life and Pension

Non-Life

Total

2023

2022

last year, also affected the growth of claims in 2023. In this regard, part of the increase in

insurance revenue stemmed from premium adjustments to inflation, while the full impact of

the premium increase will manifest in the following year. The Group also responded to high

inflation and higher inflationary expectations by implementing a number of measures related

to claims settlement and management of expenses.

The Group's operations were adversely affected by legislative changes to Slovenia's healthcare

system (see sections 7.2

Environmental impact on the Triglav Group's operations

and

8.3 Health

segment

for more information), as a result of which earnings before tax of

the health insurance

segment were negative in the amount of EUR –29.8 million.

Zavarovalnica Triglav

achieved earnings before tax of EUR 45.6 million (2022: EUR 1.4 million

taking into account new accounting standards) and net earnings of EUR 38.7 million. The

insurance operating result was positive and amounted to EUR 17.6 million despite major CAT

events. Premium rates were adjusted in line with the claims inflation. Inflation also had an

impact on the increase in operating expenses. Net investment result amounted to EUR 28.0

million, up by 31% year-on-year, as a result of the favourable situation in the financial markets

and the payment of dividends from subsidiaries (EUR 16.4 million, 2022: EUR 32.7 million). The

Company's other comprehensive income amounted to EUR 28.4 million (2022: EUR –36.5

million).

Certain categories of the Group's operations and the structure of earnings generated in 2023 are

explained in more detail below.

The Group's

total revenue

in the amount of EUR 1,425.2 million rose by 11% as a result of its high

growth in both the Life and Pension segment (index 115) and the Non-Life segment (index 114).

Insurance revenue

grew by 12% to EUR 1,351.2 million and asset management income increased

by 6% to EUR 39.7 million, whereas other income fell by 2% to EUR 34.3 million.

Insurance revenue of the Triglav Group by segment (EUR million)

The Group's insurance companies charged

EUR 1,653.7 million in consolidated

gross written

premium, up by 12% year-on-year. In the Slovenian market, premium grew by 9%, in the

international market by 28% and in other markets of the Adria region by 7%. A total of 62.5% of

premium was earned in the Slovenian insurance market (2022: 64.0%) and 18.6% in the

remaining markets of the Adria region (2022: 19.5%), while the share of international insurance

and reinsurance increased by 2.4 percentage points to 18.8%.

78.1

205.0

923.5

1,206.6

85.4

209.7

1,056.2

1,351.2

Life and Pension

Health

Non-Life

Total

2023

2022

Gross written premium of the Triglav Group by market (EUR million)

Insurance service expenses

increased significantly, i.e. by 28%, to EUR 1,323.3 million. Their high

growth was predominantly influenced by a 34% increase in expenses in the Non-Life segment,

while expenses in the Health segment grew by 16%. The Life and Pension segment expenses

declined by 6%.

Insurance service expenses of the Triglav Group by segment (EUR million)

The Group's combined ratio in Non-Life and Health

stood at 101.6%, up by 1.9 percentage points

year-on-year. The combined ratio in Non-Life reached 99.4%, down by 0.3 percentage point year-

on-year. The decrease was driven by higher insurance revenue and the reinsurance result,

despite strong claims growth. Due to the negative effects resulting from supplemental health

insurance, the combined ratio in Health increased by 12.8 percentage points to 112.9%.

947.6

79.9

94.4

42.8

40.9

30.6

243.4

1,033.9

96.9

90.7

47.4

41.8

31.3

311.7

Slovenia

Serbia

Croatia

Bosnia and

Herzegovina

Montenegro

North Macedonia

International

insurance and

reinsurance

2022

2023

63.7

202.5

766.0

1,032.3

59.8

234.5

1,029.0

1,323.3

Life and Pension

Health

Non-Life

Total

2023

2022

Combined ratio in Non-Life and Health segments of the Triglav Group

Combined ratio in Non-Life and Health segments of the Triglav Group by market

The Group's CSM of new contracts

amounted to EUR 42.3 million in 2023, the bulk of which (85%)

was generated in the Life segment and the remaining 15% in the Non-Life segment. The share

of the CSM of new contracts in total contractual service margin was 17.8%, down by 2.5

percentage points year-on-year. The release of the contractual service margin to profit or loss

amounted to EUR 39.8 million in the reporting period, up by 22% year-on-year.

The Group's contractual service margin

was

higher by EUR 52.0 million

This was primarily due

to the change in expected cash flows driven by the revaluation of life insurance sums insured

and premiums, and to a lesser extent by the change in some of the assumptions used to calculate

the present value of the expected cash flows of life insurance policies, as well as by higher

expected future recovered management fees from higher unit-linked life insurance assets.

74.6%

76.3%

25.1%

25.3%

2022

2023

Expense ratio

Claims ratio

101.5%

99.0%

94.9%

97.5%

89.7%

99.8%

102.3%

108.1%

100.0%

101.3%

95.6%

100.0%

Slovenia

Croatia

Serbia

Bosnia and

Herzegovina

Montenegro

North Macedonia

2022

2023

101.6%

99.7%

Structure of earnings before tax of the Triglav Group

2023

2022

Non-Life

Life and

Pension

Health

Asset

Management

and Other

Total

Non-Life

Life and

Pension

Health

Asset

Management

and Other

Total

Insurance operating result

760,064

16,735,367

-26,845,573

-9,350,142

-16,792,723

5,136,528

-971,931

-12,628,126

Insurance revenue

1,056,160,921

85,367,869

209,657,875

1,351,186,665

923,531,228

78,086,766

204,984,870

1,206,602,864

Claims incurred

779,748,801

25,603,176

215,894,996

1,021,246,973

552,348,057

31,037,168

184,355,918

767,741,143

Acquisition and administrative costs incl. non-attributable items

293,627,582

48,478,623

20,858,443

362,964,648

256,653,742

47,572,454

20,920,438

325,146,634

Net reinsurance service result

30,019,238

1,619,193

-31,861

31,606,570

-105,183,452

729,544

-104,453,908

Net other insurance revenue and expenses

-12,043,712

3,830,104

281,852

-7,931,756

-26,138,700

4,929,840

-680,445

-21,889,305

Net investment result

10,866,957

11,404,011

-2,984,851

2,740,539

22,026,656

2,489,796

-9,254,154

-914,599

-6,649,239

-14,328,196

Result from non-insurance operations

8,383,922

16,929,781

Total earnings before tax

11,627,021

28,139,378

-29,830,424

11,124,461

21,060,436

-14,302,927

-4,117,626

-1,886,530

10,280,542

-10,026,541

The Group's

insurance operating result

reached EUR –9.4 million (2022: EUR –12.6 million taking into account new accounting standards). Despite a

14% growth in insurance revenue, the insurance operating result of the Non-Life segment (EUR 0.8 million) was negatively impacted by a high 41%

growth in claims incurred (see Section

8.1 Non-life segment

for more information). The negative result in the Health segment is mainly due to the

high growth in claims incurred following the price cap on supplemental health insurance premium (see Section

8.3 Health segment

for more

information). Insurance operating result before tax of the Life and Pension segment increased to EUR 16.7 million (index 326). Net reinsurance service

result reached EUR 31.6 million (2022: –104.5 million), driven by an increase in reinsurance revenue of the Non-Life segment to be reimbursed by

reinsurers for claims incurred as a result of CAT events. Acquisition and administrative costs including non-attributable items totalled EUR 362.9

million, up by 12%.

Net investment result

amounted to EUR 22.0 million, whereas in the preceding year it was negative at EUR –14.3 million. Investment result amounted

to EUR 83.6 million (2022:

EUR –88.6 million), whereas financial result from insurance contracts was negative at EUR –69.7 million (2022: EUR 82.2

million). The result was positively affected by the change in provisions for not achieving the guaranteed yield in the amount of EUR 8.1 million (2022:

EUR –9.8 million).

Earnings before tax of the Triglav Group's insurance operations (EUR million)

Insurance operating result before tax of the Triglav Group by segment (EUR million)

Earnings before tax of Asset Management and Other non-insurance operations

grew by 8% to

EUR 11.1 million. The operating result amounted to EUR 8.4 million (a 50% decrease compared

to 2022, as the previous year's result was significantly affected by the gains on disposal of real

property), while the investment result amounted to EUR 2.7 million.

Earnings before tax of the Triglav Group's Asset Management and Other non-insurance operations

(EUR million)

-9.4

19.3

9.9

-12.6

-7.7

-20.3

Insurance operating result

Net investment result

Result from insurance operations

2023

2022

0.8

16.7

-26.8

-9.4

-16.8

5.1

-1.0

-12.6

Non-Life

Life and Pension

Health

Insurance operating result

2022

2023

8.4

16.9

2.7

-6.6

2023

2022

Net investment result

Result from non-insurance operations

11.1

10.3

Operating expenses

The Group's consolidated operating expenses, including other attributable insurance service

expenses

, increased by 12% to EUR 429.0 million. Operating expenses increased by 11% to EUR

434.1 million, other attributable insurance service expenses were up by 24% (EUR 23.8 million)

and the change in deferred acquisition costs reduced the expenses by EUR 13.6 million (index

114).

Operating expenses of the Triglav Group by nature

2023

2022

Index

Acquisition costs

92,806,454

81,026,082

115

21.4%

Cost of goods sold

-65,286

-6,723

971

0.0%

Depreciation/amortisation costs

26,291,666

26,166,679

100

6.1%

Depreciation/amortisation costs of leased assets

6,699,012

6,560,347

102

1.5%

Depreciation/amortisation costs of other operating assets

19,592,654

19,606,332

100

4.5%

Labour costs

197,947,600

175,509,591

113

45.6%

Wages and salaries

136,779,849

121,997,574

112

31.5%

Social and pension insurance costs

29,779,769

26,478,600

112

6.9%

Other labour costs

31,387,982

27,033,417

116

7.2%

Costs of services

117,124,839

107,743,592

109

27.0%

Costs of entertainment, advertising and trade shows

23,610,478

22,915,094

103

5.4%

Maintenance costs

16,722,517

14,651,726

114

3.9%

Costs of materials and energy

10,047,185

10,763,961

2.3%

Costs of payment transactions and banking services

2,550,277

2,480,274

103

0.6%

Insurance premium costs

2,113,737

1,367,534

155

0.5%

Costs of intellectual services

9,403,594

8,582,630

110

2.2%

Training costs

1,559,320

1,509,889

103

0.4%

Expenses for short-term leases, low-value leases and other leases

8,276,771

5,975,231

139

1.9%

Costs of transport and communications services

6,459,294

5,972,112

108

1.5%

Reimbursement of labour-related costs

5,596,541

5,248,474

107

1.3%

Costs of services provided by natural persons other than sole proprietors

2,070,808

1,809,240

114

0.5%

Other costs of services

28,714,317

26,467,427

108

6.6%

Total operating expenses (1)

434,105,273

390,439,221

111

100.0%

Other attributable insurance service expenses (2)

23,795,694

19,126,540

124

Change in deferred acquisition costs (3)

-13,616,542

-11,985,247

114

Total (1+2+3)

444,284,425

397,580,514

112

Elimination of intercompany transactions

-15,269,700

-13,600,659

112

Total consolidated (1+2+3+4)

429,014,725

383,979,855

112

Acquisition costs

grew by 15% and totalled EUR 92.8 million. The significant increase in

acquisition costs mainly resulted from 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). Their increase was also

influenced by the higher volume of transactions concluded under the principle of free movement

of services (FOS) in the EU.

At 45.6%,

labour costs

accounted for the largest portion of total expenses. They amounted to EUR

197.9 million, up by 13% 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, growth of agent costs due to premium growth and higher other labour

costs.

Costs of services

increased by 9% year-on-year, reaching EUR 117.1 million. Among them, the bulk was accounted for by costs of other services (EUR

28.7 million), costs of representation, advertising and sponsorships (EUR 23.6 million), followed by maintenance costs (EUR 16.7 million). The main

cost drivers in this group were:

▪

costs of short-term leases

(index 139), mainly the costs of IT equipment rentals and leases;

▪

costs of maintenance services

(index 114), particularly the costs of maintenance services for software, hardware and communication equipment;

▪

other costs of services

(index 108), with the highest growth in the costs of computer services.

Non-consolidated operating expenses from insurance operations

rose by 11% to EUR 387.5 million, primarily as a result of higher acquisition costs

due to increased business volume and higher labour costs. Attributable costs of EUR 328.5 million accounted for 84.8% of expenses from insurance

operations, while non-attributable costs accounted for the remaining 15.2%. Non-consolidated

expenses from non-insurance operations

increased

by 12% and totalled EUR 46.6 million, mainly as a result of higher labour costs and higher costs of services. The increase in other attributable insurance

expenses (index 124) was predominantly due to higher expenses for fire fee.

Operating expenses of the Triglav Group

2023

2022

Operating

expenses

Other

attributable

insurance service

expenses

Changes in

deferred

acquisition costs

Elimination of

intercompany

transactions

Total

Operating

expenses

Other

attributable

insurance service

expenses

Changes in

deferred

acquisition costs

Elimination of

intercompany

transactions

Total

Attributable costs

328,462,819

23,592,298

-13,616,542

-2,592,319

335,846,256

291,460,732

17,426,563

-11,985,247

-2,557,606

294,344,442

Attributable acquisition costs

214,668,318

213,309

-13,616,542

-1,080,487

200,184,598

191,558,019

-11,985,247

-1,120,998

178,451,774

Attributable claim handling expenses

29,992,668

3,844,303

33,836,971

27,599,961

2,193,833

29,793,794

Attributable administrative costs

83,801,833

19,534,686

-1,511,832

101,824,687

72,302,752

15,232,730

-1,436,608

86,098,874

Non-attributable costs

58,998,876

203,396

-11,137,602

48,064,670

57,323,799

1,699,977

-9,873,812

49,149,964

Insurance operations

387,461,695

23,795,694

-13,616,542

-13,729,921

383,910,926

348,784,531

19,126,540

-11,985,247

-12,431,418

343,494,406

Non-insurance operations

46,643,578

-1,539,779

45,103,799

41,654,690

-1,169,241

40,485,449

Total

434,105,273

23,795,694

-13,616,542

-15,269,700

429,014,725

390,439,221

19,126,540

-11,985,247

-13,600,659

383,979,855

Index

Attributable costs

113

135

114

101

114

Attributable acquisition costs

112

114

112

Attributable claim handling expenses

109

175

114

Attributable administrative costs

116

128

105

118

Non-attributable costs

103

113

Insurance operations

111

124

114

110

112

Non-insurance operations

112

132

111

Total

111

124

114

112

Investments

The Triglav Group manages its investment portfolio conservatively to ensure adequate

investment yield, safety and liquidity, aiming to achieve a high credit rating for the total

portfolio. In accordance with its sustainable development policy, the share of environmental,

social and governance (ESG) aspects is being increased.

In 2023, through active investing, the Group

maintained the structure of its investment portfolio

comparable to the balance as at 31 December 2022

; it was worth EUR 3,398.5 million, up by 4%

year-on-year. The bulk (54.7%) of the investment portfolio was accounted for by bonds invested

in developed markets, most of which have a high credit rating. Their value, as well as the value

of the equity portfolio, was also affected by the situation on the financial markets and the

diversification of investments, in addition to the partial optimisation of the Group's capital

adequacy. The structure of financial investments is discussed in greater detail in Section

3.4 of

the Accounting Report

Investments of the Triglav Group as at 31 December 2023 and 31 December 2022

Investments

Index

31 Dec 2023

31 Dec 2022

2023/2022

31 Dec 2023

31 Dec 2022

Investment property

67,953,773

68,325,487

2.0%

2.1%

Investments in associates and joint ventures

37,708,062

37,810,184

100

1.1%

1.2%

Shares and other variable-income securities

168,680,198

199,820,678

5.0%

6.1%

Debt and other fixed-income securities

1,860,044,900

1,801,656,173

103

54.7%

55.4%

Loans given

6,557,904

5,784,491

113

0.2%

Bank deposits

65,794,876

79,458,018

1.9%

2.4%

Other financial instruments

872,414

934,751

0.0%

Total (1)

2,207,612,127

2,193,789,782

101

65.0%

67.5%

Unit-linked life insurance assets (2)

540,890,478

469,528,905

115

15.9%

14.4%

Financial investments from financial contracts (3)

650,042,171

589,033,089

110

19.1%

18.1%

Total (1 + 2 + 3)

3,398,544,776

3,252,351,776

104

100.0%

The majority of

unit-linked insurance assets

is accounted for by assets invested in mutual funds

of the policyholders' choice, mainly in funds managed by Triglav Skladi. As at 31 December 2023,

these assets amounted to EUR 540.9 million (index 115).

The Group's financial investments from financial contracts

include individual and group

supplemental voluntary pension insurance contracts of the parent company and Triglav,

pokojninska družba, and totalled EUR 650.0 million as at 31 December 2023. Compared to the

2022 year-end, they increased by 10%. Financial contract assets and the types of financial

investments from financial contracts are discussed in greater detail in

Section 3.5 of the

Accounting Report.

As at the reporting date, the Group's

sustainable fixed-income investments

reached EUR 262.5

million, up by 18% year-on-year. Their share in the total bond portfolio increased to 11.1%,

exceeding the Group's strategic targets.

Sustainable (ESG) fixed-income investments of the Triglav Group

Debt securities

Indeks

Share in debt securities

31 Dec 2023

31 Dec 2022

2023/2022

31 Dec 2023

31 Dec 2022

Social impact bonds*

92,894,804

98,060,591

3.9%

4.3%

Green bonds**

157,009,420

110,964,143

141

6.7%

4.9%

Sustainable bonds***

12,595,979

13,839,732

0.5%

0.6%

Total ESG bonds

262,500,203

222,864,466

118

11.1%

9.9%

* 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.

Zavarovalnica Triglav's

investments as at 31 December 2023 totalled EUR 2,444.3 million, up by

3% relative to 31 December 2022.

Investments of Zavarovalnica Triglav as at 31 December 2023 and 31 December 2022

Investments

Index

31 Dec 2023

31 Dec 2022

2023/2022

31 Dec 2023

31 Dec 2022

Investment property

43,427,181

43,377,173

100

1.8%

Investments in subsidiaries

219,360,367

185,360,343

118

9.0%

7.8%

Investments in associates and joint ventures

37,218,841

37,369,536

100

1.5%

1.6%

Shares and other variable-income securities

118,763,970

134,252,558

4.9%

5.6%

Debt and other fixed-income securities

1,245,096,517

1,278,306,348

50.9%

53.7%

Loans given

4,547,639

4,409,207

103

0.2%

Bank deposits

7,212,364

19,489,668

0.3%

0.8%

Total (1)

1,675,626,878

1,702,564,832

68.6%

71.6%

Unit-linked life insurance contract investments (2)

512,824,007

446,142,033

115

21.0%

18.7%

Financial investments from financial contracts (3)

255,841,272

230,801,334

111

10.5%

9.7%

Total (1 + 2 + 3)

2,444,292,157

2,379,508,199

103

100.0%

Backed by a favourable trend in the financial markets, the Group's

investment result

amounted

to EUR 83.8 million in 2023 (in 2022 it was negative in the amount of EUR –88.6 million). The

result excluding unit-linked life insurance assets amounted to EUR 37.5 million (2022: EUR –11.6

million). Taking into account the financial result from insurance contracts of EUR –69.7 million

and the change in provisions for not achieving the guaranteed yield in the amount of EUR 8.1

million (2022: EUR –9.8 million) and gains and impairments of investments in associates, the

impact of the investment result on earnings was positive in the amount of

EUR 22.2 million

(2022: EUR –14.4 million).

The return on unit-linked life insurance assets is part of the total investment result, but at the

same time affects the financial result from insurance contracts in the opposite amount. It

amounted to EUR 46.3 million (2022: EUR –77.0 million), and the return on other investments

was EUR 37.5 million (2022: EUR –11.6 million).

Return on financial investments of the Triglav Group

Return on financial investments

Return excluding unit-linked life insurance

assets

2023

2022

Index

2023

2022

Index

Interest income calculated using the effective interest method

35,098,297

26,675,896

132

35,098,297

26,675,896

132

Dividend income

2,705,064

4,686,546

2,705,064

4,686,546

Net gains/losses on financial assets at FVTPL

55,709,619

-88,965,394

9,377,481

-11,924,945

Net gains/losses on financial assets at AC

464

1,689

464

1,689

Net gains/losses on financial assets at FVOCI

-9,304,016

-23,907,162

-9,304,016

-23,907,162

Net impairment/reversal of impairment of financial assets

2,291,758

-7,545,764

2,291,758

-7,545,764

Other investment income/expenses

-2,669,999

430,688

-2,681,221

431,179

Total return on financial investments (1)

83,831,187

-88,623,501

37,487,827

-11,582,561

Gains/losses and impairments of investments in associates (2)

-38,776

1,842,183

-38,776

1,842,183

Total (1 + 2)

83,792,411

-86,781,318

37,449,051

-9,740,378

Rate of return on investment

3.2%

-3.1%

+6.3 p.p.

1.8%

-0.4%

+2.2 p.p.

FVTPL – financial assets measured at fair value through profit or loss

AC – financial assets measured at amortised cost

FVOCI – financial assets measured at fair value through other comprehensive income

Net gains on financial assets at FVTPL recorded high profits in 2023, mainly due to unit-linked

life insurance assets. Interest income rose by 32%, predominantly as a result of higher interest

rates, which had been on the rise since the second half of 2022. Other investment expenses

amounted to EUR 2.7 million and mostly represent negative exchange rate differences. The net

reversal of impairment of financial investments recorded a positive result of EUR 2.3 million,

mainly as a result of lower probabilities of default, which are measured using a mark-to-market

approach according to the rules of the new IFRS 9. Dividend income reached EUR 2.7 million and

was 42% lower than last year, which is also a result of the sale of certain equity investments last

year.

The rate of return on investments of the Group

(excluding unit-linked insurance assets) was 1.8%

in 2023, whereas in 2022 it was –0.4%. Excluding exchange rate differences, the rate of return

at Group level was 1.9% (2022: –0.4%).

Return on financial investments of Zavarovalnica Triglav

Return on financial investments

Return excluding unit-linked life insurance

assets

2023

2022

Index

2023

2022

Index

Interest income calculated using the effective interest method

21,611,210

17,120,985

126

21,611,210

17,120,985

126

Dividend income

2,441,534

4,410,224

2,441,534

4,410,224

Net gains/losses on financial assets at FVTPL

49,860,374

-76,608,014

3,635,228

432,435

Net gains/losses on financial assets at FVOCI

-5,145,594

-21,945,662

-5,145,594

-21,945,662

Net impairment/reversal of impairment of financial assets

1,295,449

-5,131,543

1,295,449

-5,131,544

Other investment income/expenses

71,752

543,832

71,932

544,323

Total return on financial investments (1)

70,134,725

-81,610,178

23,909,759

-4,569,239

Gains/losses and impairments of investments in associates (2)

16,304,050

30,623,485

16,304,050

30,623,485

Total (1 + 2)

86,438,775

-50,986,693

40,213,809

26,054,246

154

Rate of return on investment

4.1%

-2.2%

+6.3 p.p.

2.4%

1.4%

+1.0 p.p.

Equity

The Triglav Group's total equity

as at 31 December 2023 amounted to EUR 891.1 million, down

by 1% year-on-year, whereas

Zavarovalnica Triglav's total equity

grew by 2% to EUR 669.2

million. Total equity in the Group's total balance sheet liabilities decreased by 1.9 percentage

points to 21.7%. The decrease is due to the dividend payment of EUR 56.8 million against a total

comprehensive income of EUR 50.9 million. Controlling interests declined by 1% to EUR 887.4

million. Non-controlling interests increased by 2% to EUR 3.7 million as a result of the positive

net income attributable to non-controlling interests. The share capital of EUR 73.7 million

remained unchanged and was divided into 22,735,148 ordinary shares.

Net earnings for the year

disclosed in the balance sheet amounted to EUR –7.2 million and, due

to the allocation of part of net earnings to other reserves from profit, were EUR 23.3 million lower

than net earnings disclosed in the statement of profit or loss.

The Group's comprehensive income after tax

in 2023 amounted to EUR 50.9 million (2022: EUR

–57.9 million) and the parent company's to EUR 67.1 million (2022: EUR –27.6 million).

8.1

Non-Life segment

Performance results of the Non-Life segment

Triglav Group

Zavarovalnica Triglav

2023

2022

Index

2023

2022

Index

Total business volume

1,237,115,325

1,070,288,314

116

841,675,614

729,588,903

115

Gross written premium

1,168,330,259

1,009,172,823

116

774,866,391

670,083,437

116

Other income

68,785,066

61,115,491

113

66,809,223

59,505,466

112

Total revenue

1,070,456,973

939,262,457

114

720,307,430

640,713,363

112

Insurance operating result

760,064

-16,792,723

2,083,878

-25,629,296

Insurance revenue

1,056,160,921

923,531,228

114

709,194,358

628,205,421

113

Claims incurred

779,748,801

552,348,057

141

537,393,087

384,804,530

140

Acquisition and administrative costs including

non-attributable items

293,627,582

256,653,742

114

203,541,839

176,121,165

116

Net reinsurance service result

30,019,238

-105,183,452

39,447,646

-75,371,258

Net other insurance revenue and expenses

-12,043,712

-26,138,700

-5,623,200

-17,537,764

Net investment result

10,866,957

2,489,796

436

19,420,462

25,335,221

Earnings before tax

11,627,021

-14,302,927

21,504,340

-294,075

Combined ratio

99.4%

99.6%

-0.3 p.p.

99.2%

101.8%

-2.6 p.p.

CSM of new contracts/Total CSM

38.0%

47.9%

-9.9 p.p.

39.4%

48.4%

-9.0 p.p.

Operating expenses*

305,912,154

269,835,952

113

207,342,790

178,109,085

116

Expenses to written premium*

22.5%

23.1%

-0.6 p.p.

26.8%

26.6%

0.2 p.p.

Expenses to insurance revenue*

25.5%

25.9%

-0.4 p.p.

29.2%

28.4%

0.9 p.p.

31 Dec 2023

31 Dec 2022

Index

31 Dec 2023

31 Dec 2022

Index

Contractual service margin (CSM)

16,697,354

16,204,600

103

15,732,207

15,360,300

102

Risk adjustment (RA)

30,188,968

42,533,657

11,724,267

23,229,779

Net insurance contract liabilities

978,725,901

794,357,407

123

687,817,382

550,286,739

125

Net reinsurance contract assets

320,919,906

171,978,486

187

305,976,870

163,835,775

187

* Non-consolidated data.

The total business volume

of the non-life insurance segment amounted to EUR 1,237.1 million,

recording a high 16% growth.

Gross written premium

in the non-life insurance segment grew at

the same rate. In the Slovenian market, premium grew by 14%, in the international market by

28% and in other markets of the Adria region by 7%. A lower year-on-year premium was written

in Croatia (a lower exposure to animal insurance, crop insurance, credit insurance and marine

insurance) and North Macedonia (a lower volume of motor vehicle liability insurance due to the

termination of cooperation with certain brokerage companies). High growth in none-life

insurance premium due to attracting new policyholders was recorded in Serbia and Bosnia and

Herzegovina. Premium growth was recorded in most non-life insurance groups, with the

exception of credit insurance. Other non-life insurance (marine insurance and assistance

insurance) and motor vehicle insurance achieved the highest growth.

The total revenue

of the

non-life insurance segment amounted to EUR 1,070.5 million, up by 14%, which was mostly

influenced by the growth in insurance revenue due to higher insurance coverage, the increase in

premium rates due to inflation and the growth of insurance sales under the principle of free

movement of services (FOS).

Non-consolidated gross claims paid

grew by 49%. Their high growth resulted from this year's

larger volume of CAT events (see

Section 7.2 Environmental impact on the Triglav Group’s

operations

for more information) and the rise in the prices of materials and services due to

inflation, which was most pronounced in Slovenia and Serbia. Gross claims paid increased the

most in real property and motor vehicle insurance. Pozavarovalnica Triglav Re also recorded a

high 92% increase in gross claims paid due to the hailstorms and floods.

Non-life insurance

claims incurred

, which also comprise the change in cash flows, the change in experience

correction and the effects of allocation to onerous contracts, grew by 41% to EUR 779.7 million

at Group level and by 40% to EUR 537.4 million at the parent company.

The insurance operating result

of the non-life insurance segment was EUR 0.8 million. The result

was driven by high growth in claims paid (index 141) and a 14% increase in acquisition,

administrative and non-attributable costs. Net reinsurance service result reached EUR 30.0

million (2022: EUR –105.2 million), driven by an increase in reinsurance income to be reimbursed

by reinsurers for CAT claims stemming from storms and floods. The increase in

the investment

result

(EUR 10.9 million) was affected by the favourable situation in the financial markets,

resulting in higher returns on investment.

Earnings before tax of the non-life insurance segment

amounted to EUR 11.6 million (2022: EUR –14.3 million).

The combined ratio

in non-life insurance stood at 99.4%, down by 0.3 percentage point year-on-

year. The decrease was driven by higher insurance revenue and the reinsurance result, despite

strong claims growth. The claims ratio and the expense ratio improved by 0.2 percentage point

and 0.1 percentage point respectively.

Combined ratios of Non-Life segment by the Triglav Group insurance market

101.8%

99.0%

94.9%

97.5%

89.7%

99.8%

99.2%

108.1%

100.0%

101.3%

95.6%

100.0%

Slovenia

Croatia

Serbia

Bosnia and

Herzegovina

Montenegro

North Macedonia

2022

2023

8.2

Life and Pension segment

Performance results of the Life and Pension segment

Triglav Group

Zavarovalnica Triglav

2023

2022

Index

2023

2022

Index

Total business volume

290,163,026

268,666,303

108

219,062,078

205,231,724

107

Gross written premium

278,836,834

266,160,975

105

207,895,186

198,780,186

105

Other income

11,326,191

2,505,328

452

11,166,892

6,451,538

173

Total revenue

101,989,927

88,468,816

115

74,409,024

67,278,320

111

Insurance operating result

16,735,367

5,136,528

326

15,488,917

5,587,148

277

Insurance revenue

85,367,869

78,086,766

109

66,443,012

61,998,800

107

Claims incurred

25,603,176

31,037,168

16,759,427

21,229,338

Acquisition and administrative costs including

non-attributable items

48,478,623

47,572,454

102

35,545,384

36,284,102

Net reinsurance service result

1,619,193

729,544

222

Net other insurance revenue and expenses

3,830,104

4,929,840

1,350,716

1,101,788

123

Net investment result

11,404,011

-9,254,154

8,568,256

-3,900,080

Earnings before tax

28,139,378

-4,117,626

24,057,172

1,687,068

1,426

CSM of new contracts/Total CSM

16.2%

17.6%

-1.3 p.p.

12.6%

16.2%

-3.5 p.p.

New business margin

14.6%

11.4%

3.2 p.p.

13.9%

13.2%

0.7 p.p.

Contractual service margin sustainability

1.2

102

1.0

1.2

Operating expenses*

60,694,540

58,486,617

104

44,604,365

43,265,894

103

Expenses to written premium*

21.1%

21.3%

-0.2 p.p.

21.5%

21.8%

-4.4 p.p.

Expenses to insurance revenue*

71.1%

74.9%

-3.8 p.p.

67.1%

69.8%

-2.7 p.p.

31 Dec 2023

31 Dec 2022

Index

31 Dec 2023

31 Dec 2022

Index

Contractual service margin (CSM)

221,656,867

170,133,370

130

209,642,300

160,284,153

131

Risk adjustment (RA)

33,264,554

26,080,994

128

31,137,721

24,160,477

129

Net insurance contract liabilities

1,305,706,187

1,233,378,861

106

1,186,897,584

1,130,729,047

105

Net reinsurance contract assets

384,510

7,890,550

* Non-consolidated data.

The total business volume

of the life and pension insurance segment amounted to EUR 290.2

million, up by 8% year-on-year.

Gross written premium

grew by 5% and premium growth was

achieved in all insurance markets, with the exception of Bosnia and Herzegovina's market. A 10%

growth was seen in unit-linked life insurance, primarily as a result of premium growth at the

parent company (due to higher premium payments and asset transfers) and higher premium

payments into the pension insurer's lifecycle guarantee funds. The significant growth in

other

income

mainly resulted from the reimbursement of the Sarajevo-based reinsurer's premium,

which in turn was reflected in higher mathematical provisions; therefore, the income had no

impact on earnings.

Non-consolidated gross claims paid

in the life and pension insurance segment rose by 11%.

Among them, traditional life insurance claims grew by 13%, mainly as a result of higher payouts

at the parent company (due to policy maturity) and at the Croatian insurer and the Sarajevo-

based insurer (higher payouts due to policy maturity and surrender). The 7% growth in unit-

linked life insurance claims primarily stemmed from increased payouts resulting from policy

surrenders and advances at the parent company. Life and pension insurance

claims incurred

which also comprise the change in cash flows, the change in experience correction and the

effects of allocation to onerous contracts, declined by 18% to EUR 25.6 million at Group level and

by 21% to EUR 16.8 million at the parent company. The decrease was mainly due to the

adjustment of the expected longevity assumptions and the appropriate consideration of the

indexation of unit-linked insurance contracts at the parent company.

The total revenue

of the life and pension insurance segment rose by 15%, with insurance

revenue recording a 9% growth, income from asset management fees recording a 5% growth

and other income recording a 172% growth.

Earnings before tax of the Group's life and pension insurance segment

amounted to EUR 28.1

million (2022: EUR –4.1 million).

Insurance operating result before tax

increased to EUR 16.7

million (index 326), driven by higher insurance revenue due to a higher release of the contractual

service margin, lower claims paid due to a decline in loss of onerous contracts and, to a lesser

extent, net reinsurance result.

Investment result before tax

of the Group's life and pension

insurance segment amounted to EUR 11.4 million, whereas last year it was negative (EUR –9.3

million). The good investment result stemmed from favourable circumstances and higher

returns on financial markets, which led to the release of provisions for not achieving the

guaranteed yield on supplemental voluntary pension insurance (a positive impact of EUR 8.1

million euro compared to the negative impact of EUR –9.8 million in 2022).

Earnings before tax of the Company's life and pension insurance segment

increased to EUR 24.1

million (2022: EUR 1.7 million).

Insurance operating result

rose to EUR 15.5 million (index 277),

mainly due to the release of the contractual service margin.

Net investment result

of the life and

pension insurance segment amounted to EUR 8.6 million (2022: EUR –3.9 million),

predominantly due to the change in the provisions for not achieving the guaranteed yield on

supplemental voluntary pension insurance and higher returns on investment.

The Group's CSM of new life and pension insurance contracts

amounted to EUR 36.0 million,

nearly the half of which was accounted for by unit-linked life insurance contracts and the rest by

other life insurance contracts. The CSM of new contracts in total contractual service margin was

16.2%, down by 1.3 percentage points year-on-year. The release of the contractual service

margin to profit or loss amounted to EUR 29.4 million compared to EUR 24.9 million in 2022.

The new business margin

of the Group's life and pension insurance segment stood at 14.6% in

2023, up by 3.2 percentage points year-on-year.

The Group's contractual service margin sustainability

shows the ratio between the CSM of new

contracts and the release of the contractual service margin to profit or loss as a result of cash

flow maturity. It reached 1.2.

The contractual service margin

of the Group's life and pension insurance contracts rose by 30%

to EUR 221.7 million as at 31 December 2023. Its increase resulted from the positive difference

between the CSM of new contracts and the release of the contractual service margin to profit or

loss in the amount of EUR 6.5 million and the positive change in the expected cash flows of

existing contracts in the amount of EUR 47.4 million, while other changes increased the

contractual service margin by EUR 2.5 million. The increase in the change in expected cash flows

was driven by the revaluation of life insurance sums insured and premiums, and to a lesser

extent by the change in some of the assumptions used to calculate the present value of the

expected cash flows of life insurance policies, as well as by higher expected future recovered

management fees from higher unit-linked life insurance assets.

Movement in the Triglav Group's CSM in Life and Pension segment in 2023

The Company's CSM of new contracts

amounted to EUR 26.5 million in 2023 compared to EUR

25.9 million in the previous year. The CSM of new contracts in total contractual service margin

was 12.6%, down by 3.5 percentage points year-on-year. The release of the contractual service

margin to profit or loss amounted to EUR 26.0 million in 2023.

The Company's contractual service

margin

increased by 31% to EUR 209.6 million as at 31 December 2023. Its increase primarily

resulted from the positive change in the expected cash flows of existing contracts in the amount

of EUR 51.1 million (the reasons are given in the explanation for the Group), while other changes

decreased it by EUR 2.2 million. The difference between the CSM of new contracts and the

release of the CSM to profit or loss decreased the balance by EUR 0.4 million.

The Company's

new business margin

stood at 13.9% compared to 13.2% in 2022.

The Company's

contractual service margin sustainability

reached 1.0.

Movement in Zavarovalnica Triglav's CSM in Life and Pension segment in 2023

170.1

221.7

36.0

47.4

-29.4

-2.5

31 Dec 2022

CSM of new

contracts

Change in expetcted

cash flows

Release of the CSM

toprofit or loss

Other

31 Dec 2023

160.3

209.6

26.5

51.1

-26.0

-2.2

31 Dec 2022

CSM of new

contracts

Change in expetcted

cash flows

Release of the CSM

toprofit or loss

Other

31 Dec 2023

8.3

Health segment

Performance results of the Health segment

Triglav Group

2023

2022

Index

Total business volume

206,747,460

205,205,819

101

Gross written premium

206,513,284

204,223,289

101

Other income

234,176

982,530

Total revenue

210,832,299

205,069,134

103

Insurance operating result

-26,845,573

-971,931

2,762

Insurance contract revenue

209,657,875

204,984,870

102

Claims incurred

215,894,996

184,355,918

117

Acquisition and administrative costs including non-attributable items

20,858,443

20,920,438

100

Net reinsurance service result

-31,861

Net other insurance revenue and expenses

281,852

-680,445

Net investment result

-2,984,851

-914,599

326

Earnings before tax

-29,830,424

-1,886,530

1,581

Combined ratio

112.9%

100.1%

12.8 p.p.

CSM of new contracts/CSM

31.3%

71.6%

-40.3 p.p.

Operating expenses*

20,855,001

20,461,962

102

Expenses to gross written premium ratio*

10.1%

10.0%

0.1 p.p.

Expenses to insurance revenue ratio*

9.9%

10.0%

0.0 p.p.

31 Dec 2023

31 Dec 2022

Index

Contractual service margin (CSM)

92,661

93,318

Risk adjustment (RA)

5,555,693

3,838,588

145

Net insurance contract liabilities

34,121,639

43,454,493

Net reinsurance contract assets

-31,861

* Non-consolidated data.

In 2023, the performance of the Group's health insurance segment was significantly affected by

the announced termination of supplemental health insurance as part of the planned reform of

Slovenia's healthcare system. The performance results were mainly influenced by the Decree of

the Government of the Republic of Slovenia on setting the maximum price of supplemental

health insurance premium (hereinafter: the Decree), which was adopted in April 2023. The

provisions of the Decree mean that Triglav, Zdravstvena zavarovalnica, which offers

supplemental health insurance products within the Group, could neither charge policyholders a

premium in an amount that would correspond to the high increase in claims and expenses nor

was it allowed to discontinue offering these products.

As a result,

earnings before tax

of the health insurance segment were negative in the amount of

EUR –29.8 million.

Insurance operating result

of EUR –26.8 million was predominantly

influenced by the high growth in claims paid (index 117). The latter was also reflected in

the

combined ratio

, which rose by 12.8 percentage points to 112.9% year-on-year.

The total business volume

of the health insurance segment amounted to EUR 206.7 million, up

by 1% year-on-year.

Gross written premium

grew by 1%, with a high 38% growth recorded by

complementary insurance. The supplemental health insurance premium was 1% lower year-on-

year as a result of price regulation and a lower sale of new insurance contracts due to the

announced changes in the law.

Non-consolidated gross claims paid

in the health insurance segment grew by 18% and

claims

incurred

by 17%, mainly due to higher expenses for copayments for medicines and healthcare

services, which are used by insured persons to co-finance the difference to the full value of

healthcare services provided by the public healthcare system through supplemental voluntary

health insurance.

With respect to the effects of said Decree on its operations, the Group is taking all the necessary

steps to protect the interests of its policyholders, Company shareholders and other stakeholders,

in addition to staying in contact with the Slovenian Government and the Insurance Supervision

Agency. In accordance with its strategy, the Group will continue to develop and strengthen

complementary health insurance in the Adria region markets. These products are sold and

developed as commercial insurance products and are one of the pillars of the Group's insurance

business.

8.4

Asset Management and Other non-insurance operations

Non-insurance operations are carried out by 18 Group companies, and include asset

management, real property management and other activities (insurance agency activities, repair

of motor vehicles and motorcycles, holding activities, etc.).

Performance results of the Triglav Group's Asset Management and other non-insurance operations

Triglav Group

2023

2022

Index

Total business volume

46,193,505

50,179,011

Net other operating income

21,247,803

26,331,436

Income from asset management

32,703,777

30,823,282

106

Net other income

1,174,683

1,130,189

104

Result of non-insurance operations

8,383,922

16,929,781

Net investment result

2,740,539

-6,649,239

Earnings before tax

11,124,461

10,280,542

108

Operating expenses*

46,643,578

41,654,690

112

Expenses to income from non-insurance operations ratio*

80.8%

69.0%

11.7 p.p.

* Non-consolidated data.

The Group's

total business volume

of asset management and other non-insurance operations

amounted to EUR 46.2 million, down by 8% year-on-year. The decrease in the total business

volume is a result of last year's high volume due to realised one-off gains on the disposal of real

property.

Income from asset management

rose by 6% to EUR 32.7 million; it includes income from

management fees from Triglav Skladi, which grew by 5%, and the Macedonian company Triglav,

Penzisko društvo, which increased by 65%.

Operating expenses of non-insurance companies

were 12% higher, mainly due to higher labour

costs, costs of services, and costs of materials and energy.

Earnings before tax of asset management and other non-insurance operations

amounted to EUR

11.1 million, up by 8% year-on-year. Triglav Skladi, as the holder of asset management business,

was the main contributor to earnings before tax, increasing its sales income by 5% and

generating earnings before tax of EUR 10.3 million.

Net investment result

amounted to EUR 2.7

million (in 2022 it was negative at EUR –6.6 million), while the

result from non-insurance

operations

of EUR 8.4 million was 50% lower than in 2022, when gains on disposal of real

property were realised.

The sale of the Group's non-strategic investment property is ongoing, leading to improved

occupancy rates and profitability of strategic property.

Asset management

at the Triglav Group comprises the management of the parent company's

own insurance portfolios (assets backing liabilities and guarantee funds), clients' saving through

the Group's life and pension insurance companies, asset management by Trigal and the

management of clients' assets in mutual funds and discretionary mandate assets by Triglav

Skladi.

The Group manages own funds and unit-linked insurance assets in the amount of EUR 3.4 billion

in its companies. In addition, the Group manages assets in mutual funds and discretionary

mandate assets of EUR 1.3 billion (index 129).

The Group's total assets under management

as at

31 December 2023 amounted to EUR 4.9 billion, up by 11% year-on-year.

Asset management of the Triglav Group as at 31 December 2023 and 31 December 2022

Assets under management

Index

31 Dec 2023

31 Dec 2022

2023/2022

Own insurance portfolio (1)

2,207,612,127

2,193,789,782

101

Unit-linked life insurance assets (2)

540,890,478

469,528,905

115

Financial instruments from financial contracts (3)

650,042,171

589,033,089

110

Total (1+2+3)

3,398,544,776

3,252,351,776

104

Assets under management – Triglav Skladi (4)*

1,194,176,397

950,017,394

126

Assets under management – Triglav penzisko društvo, Skopje (5)

143,067,579

88,070,081

162

Assets under management – Triglav Fondovi, Sarajevo (6)

6,073,641

4,274,157

142

Total (4+5+6)

1,343,317,617

1,042,361,633

129

Assets under management – Trigal (7)**

91,237,169

71,394,000

128

Assets under management – Evropski dobrovoljni penzijski fond, Banja Luka (8)

18,297,531

13,733,360

133

Total (7+8)

109,534,700

85,127,360

129

Total

4,851,397,093

4,379,840,769

111

* Zavarovalnica Triglav's unit-linked life insurance contract assets managed by Triglav Skladi are excluded from Triglav Skladi's assets under

management.

** Own funds are eliminated from Trigal's assets under management.

Asset and investment fund management market in Slovenia

Triglav Skladi

is the Group's core asset management company, with assets under management

of EUR 1.7 billion as at the 2023 year-end.

A total of five asset management companies operated

in Slovenia

, which managed the net asset

value of EUR 4.8 billion in

mutual funds

, up by 21% year-on-year. The significant increase is due

to both capital market growth and net inflows, which amounted to EUR 339 million.

Triglav

Skladi

held

a 31.2% market share

(compared to 31.3% in 2022), remaining one of the leading

managers of assets in investment funds in Slovenia's 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 2023, the company managed the

portfolio of 110,000 investors worth

EUR 1.5 billion in mutual funds

. The value of net assets

under management rose by 21% due to net inflows of EUR 110.4 million and favourable trends

in the capital markets (by EUR 145.6 million).

Discretionary mandate services

, provided by four companies, accounted for EUR 2.7 billion of

discretionary mandate assets as at the 2023 year-end, an increase of 10% relative to the previous

year.

Triglav Skladi increased its market share

in the discretionary mandate segment

to 7.6%

SASB: FN-AC-000.A.

(compared to 6.2% in 2022), and their assets under management rose by 35% to

EUR 208.3

million

. Net inflows amounted to EUR 23.2 million, while the favourable effects of capital

markets increased net asset value by EUR 30.6 million.

Triglav Skladi also manages the unit-linked life insurance assets of the Triglav Group. Among

them are the Financial Objectives investment strategy, which enables clients to actively adjust

their portfolios according to the lifecycle principle, and Active Investment packages, tailored to

different client segments adjusted to their 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.

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.

Integration of environmental, social and governance (ESG) aspects into asset management

By considering key risks and ESG aspects in its asset management activity, the Group is delivering

on its strategic sustainability ambitions and supporting the transition to a climate-neutral and

climate-resilient economy. Triglav Skladi has taken an important development step in this area

by transforming 12 mutual funds to manage their investments with a focus on sustainability

aspects. As a result, as at 31 December 2023, the assets of mutual funds and discretionary

mandate assets that take into account the sustainability aspect amounted to EUR 1.1 billion.

This makes the company

the leading sustainable asset manager in Slovenia

Active ownership

An active ownership role in the investment process could be key to the adoption of better

business policies and practices by companies (or issuers of financial instruments), improving

their performance. The Group implements active ownership in accordance with the adopted

Sustainable Investment Policy by communicating with the issuer or by exercising the rights

deriving from financial instruments, including participation, voting and proposing agenda items

at issuers' general meetings. 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.

See Section

10.3 Development of asset management activities

for more information on

strengthening the asset management activity.

8.5

Investment in own-use real property and equipment

The Group invested EUR 7.5 million in property, plant and equipment and EUR 14.0 million in

intangible assets (software and property rights). The Company invested EUR 5.0 million in

property, plant and equipment and EUR 10.2 million in intangible fixed assets.

The value of property for own use is increased through active management and prudent

investing in it. In addition, its utilisation is being improved and its functionality increased. The

GRI 2-24.

SASB: FN-IN-410a.1.

SASB: FN-AC-410a.3.

project aimed at rationalising and optimising the premises for own activities is currently

underway, following the agreed-upon plan for 2021–2025. It encompasses two main objectives:

▪

To provide employees with a modern business environment and the right conditions for new

ways of working, including working from home or from different locations (hybrid

workplaces), and to provide clients with a comfortable user experience (e.g. remote

transacting); and

▪

To realise lasting effects in terms of rationalising operating expenses through the better

utilisation of premises for own use, without compromising on quality.

In the last two years, 15 sites were abandoned, 10 were sold and 2 were relocated. Space

optimisation was carried out in 24 locations. These actions resulted in a total saving of 840m

space and a reduction in operating and maintenance costs. This project will continue in the

coming years.

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.

The

hybrid workplace

pilot project continued its implementation, aiming to modernise the work

environment to accommodate various work styles, such as quiet working, collaboration, learning

and social interaction. Alongside the option to work from home, the hybrid workplace

incorporates a system of non-dedicated workplaces (desk sharing), reducing the necessity for

fixed workstations. By 2024, 300 employees from the parent company will be included in the

hybrid workplace project.

IT support for real property management enables secure and complete record keeping, fast and

accurate reporting and the implementation of various administration processes. Real property

management software was upgraded with investment management and cost management

functionalities, and the programme to upgrade its energy accounting software is underway.

Through acquisitions of computer hardware, network and communication equipment, and

uninterruptible power supply units, an adequate infrastructure is ensured for efficient and

secure operations, further supporting the expansion of the Group's business. Investment in

computer and server software facilitates the incorporation of new functionalities, compliance

with regulatory requirements, as well as enhanced process automation and advanced

analytics.

Risk Management

The Triglav Group maintained strong capital strength and liquidity, which was confirmed by

the re-affirmed "A" credit ratings with a stable medium-term outlook.

Increased risks due to extreme weather events, macroeconomic conditions with inflationary

trends and the situation on the financial markets were actively managed. Special attention

was focused on supplemental health insurance and its regulation by the government.

Prudent underwriting of underwriting risks continued. Market risks were kept within target

levels. The planned asset-liability matching and adequate diversification of investments

were pursued.

Development activities focused on upgrading sustainability risk and information security

risk management systems.

In 2023, the Group faced extreme weather events, the impact of which was limited by effective

reinsurance protection as part of its regular risk management. In addition, the reporting year

was marked by the setting of a cap on supplemental health insurance premium in Slovenia and

other restrictions, which increased regulatory risk. The Group's operations was also affected by

changes in the macroeconomic environment and financial markets. In addition to inflationary

pressures, the actions of the central banks, which are pursuing a restrictive monetary policy and

raising interest rates, thereby impacting the financial markets and the cooling of economic

growth, are also important for the Group (see Section

7.1 The general economic environment

worldwide and in Slovenia

for more information).

Increased inflation and the situation on the financial markets are mainly reflected in market

and underwriting risks. Within the latter, they primarily affect non-life insurance contracts, life

insurance contracts with a guarantee and supplemental voluntary pension insurance (SVPI)

contracts with a guaranteed return. The Group's risk management was therefore again aimed

at adapting to changes on the financial markets.

Despite the difficult business environment and the implementation of the dividend policy, the

Group maintained its financial strength with capital adequacy of 200%. The Group is committed

to effective risk management and quality capital structure (own funds), 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 by the credit rating agencies S&P Global Ratings and AM Best. Both ratings have a

stable medium-term outlook (see Section

6.6 Credit rating

for more information). Adequate

liquidity at Group level is achieved through regular liquidity risk management (see Section

2.8

Risk management

of the Accounting Report for more information).

Main risk management development activities at Group level were carried out in the business

lines that were identified as key due to improvements needed or in order to respond to external

circumstances:

▪

The Company adapted its capital adequacy calculations, reporting and planning to

the new

international accounting standards

, as well as individual risk monitoring parameters based

on financial reporting.

▪

Additional indicators were included in the monitoring of

market risks

to control the volatility

of their drivers. As a result of additional alternative investments, the monitoring of risks

associated with such investments was upgraded.

▪

New solutions to monitor climate change risks for

non-life underwriting risks

were

implemented.

100

▪

Credit risk

management was upgraded, especially with respect to inward and outward

reinsurance contracts.

▪

In addition to regularly upgrading the

liquidity risk

management system, its automated

monitoring and the transfer of best practices to subsidiaries continued.

▪

Operational risks

, particularly with regard to cyber risks and outsourcing risks, were

upgraded.

▪

Non-financial risk

management was upgraded especially in relation to

sustainability risks

▪

The Sustainable Development Policy of Zavarovalnica Triglav d.d. and the Triglav Group

was adopted.

▪

The Sustainable Investment Policy of the Company and the Group was developed and

published.

▪

The monitoring of the values of principle adverse impacts (PAIs) was established at the

level of investment portfolios.

▪

As part of its sustainability risk management system, the Company focused on climate

change risk. The respective guidelines were included in the Risk Appetite Statement. In

addition, the regular monitoring of transition risk (transition to a carbon-neutral

economy) was launched.

For the remaining types of risk, the focus was on process automation and maintaining the

existing system.

The Group's risk management

system was systematically upgraded by

consistently monitoring material risks. In 2023, the two subsidiaries subject to other sector

legislation established a risk assessment and measurement system comparable to that already

in place at Group level.

9.1

Risk management system

The Group's risk management 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. The system is

shaped by effective processes for the continuous identification, assessment and control of

assumed, potential or emerging risks. A clear, transparent and well-documented system enables

the Company to take appropriate and timely action and to maintain the risk profile at the level

defined in the Risk Appetite Statement. The system is continuously updated, maintaining its

integrity and relevance. In the subsidiaries, it is developed according to the parent company's

rules and by adhering to the principle of proportionality.

The existing risk management system proved to be adequate in 2023.

9.1.1

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 are responsible for its

operation and defining organisational goals and strategies for achieving them. Furthermore,

they establish the management structure and processes for appropriate management of

assumed risks. The Management Board and the Supervisory Board are key stakeholders in all

lines of defence that support their functioning.

101

The first line of defence comprises the

business functions

, which identify and underwrite risks

in their respective work area in accordance with the Management Board's guidelines. They also

manage the actual risks within the allowed exposure limits.

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

Risk underwriting

Second line of defence

Risk management

Third line of defence

Independent supervision

Business functions at all

levels

Competent risk management

committees, the risk

management function, the

actuarial function, the

compliance function and

other related areas

Internal audit

▪

Active operational

management of concrete

business risks

▪

Responsibility for risk

identification and

underwriting

▪

Definition of the risk

management system

▪

Definition and execution

of exposure identification,

measurement and

monitoring procedures

▪

Definition of the exposure

limit system

▪

Execution of regular

independent effectiveness

and efficiency reviews of

the internal control

system and the risk

management system

The second and third lines of defence comprise

the key functions of the governance system that

are organised as independent organisational units

. The second line of defence includes the risk

management function, the non-life and life insurance actuarial functions, and the compliance

function. The third line of defence comprises the internal audit function. All key functions

cooperate with one another, with other areas within the Company and with Group companies.

They are independent in their work.

The risk management function

is responsible for the coordinated and continuous operation of

the integrated risk management system. Furthermore, it monitors the general risk profile, the

harmonisation of main risk assessment models and methodologically consistent system

development, performs the underlying risk analyses, reports on risk exposures and assesses

capital adequacy using the regulatory method and other capital models. It carries out own risk

and solvency assessment, based on guidance from the Management Board. It reviews the risk

profile quarterly, reporting to the Management Board and the Supervisory Board. In addition, it

102

drafts other regulatory reports, such as the Solvency and Financial Condition Report and the

Regular Supervisory Report, as well as reports to regulatory bodies as required.

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 operations to any

identified changes, and co-creates the internal controls for ensuring compliance of a particular

process, business line, 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

calculates and coordinates insurance technical provisions using

appropriate methods, models and assumptions, as well as comprehensive, high-quality data,

and harmonises the capital requirements for underwriting risks. 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. Furthermore, it participates in own risk and solvency

assessment, and 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 company

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 business lines.

All key functions are in charge of not only transferring know-how and best practices to other

Group members but also of ensuring their harmonised operation.

The second line of defence of the risk management system includes

committees

. Their purpose

is to provide support to the Management Board in regular risk monitoring, coordination of

actions and information about risk management.

103

The risk management system's committees and their responsibilities

Risk Management Committee (RMC)

Responsible for:

•

non-financial risks that do not fall within the powers of other

committees

•

capital risks

•

overall all other types of risks, with an emphasis on the Group's most

material risks

Approves:

•

methodologies and rules defining risk assessment methods

•

limit systems related to all risk types

•

recommendations to subsidiaries regarding the maximum permitted

exposure to individual risks

Reporting

Assets and Liabilities

Committee

(ALCO)

Responsible for:

liquidity risk, market risks, life

underwriting and pension

risks, credit risks of the

investment portfolio

Non-life Underwriting

Committee (UWC)

Responsible for:

non-life underwriting and

credit risks

Operational Risk

Committee (ORC)

Responsible for:

operational risks

Project Steering

Committee (PSC)

Responsible for:

project risks

Compliance and

Sustainable

Development

Committee (CSDC)

Responsible for:

compliance risks,

reputational risks and

sustainability risks

Reporting

Life Insurance Product

Forum (LIPF)

Responsible for:

life underwriting risks

Non-life Insurance Product

Forum (NIPF)

Responsible for:

non-life underwriting risks

104

Risk management first takes place at the level of individual companies and then at Group level.

At the level of subsidiaries, the management and the persons in charge of risk management are

responsible for the operation of the risk management system.

The Subsidiary Management Division at the parent company coordinates the drawing up of

minimum standards for Group companies and their transfer to the Group companies, in

cooperation with the parent company's Risk Management Department, which is responsible for

risk management minimum standards. Through the common standards, the Group ensures an

effective and transparent risk management system at Group level, which is based on effective

communication, quality exchange of data and information, time availability, methodological

consistency, accounting verifiability and integrity.

9.1.2

Risk management process

The comprehensive risk management process

is based on the Group's strategy and business

plan, which define its

risk appetite

. The latter 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 based on 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 to measure business performance and pursue strategic objectives, i.e.

the capital adequacy ratio

, is specified in greater detail in the Risk Appetite Statement. The

capital adequacy ratio is the ratio between available own funds and the amount of the solvency

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. In the context of the capital

management process, it is ensured that its value is within the target range. Its set value is

monitored through a set of more detailed risk indicators and exposure limits in all segments of

the Group's operations.

The dividend policy is defined in the Capital Management Policy of the Company and the Group

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 sustainability of capital adequacy is

evaluated using stress scenarios that account for existing, potential or emerging risks, with each

type of risk being assessed individually. This allows the Company to take appropriate action,

also by adjusting the guidelines for accepting transactions, premium rates, the limit system, risk

transfer, etc. This approach not only enhances the Group’s resilience of Group members against

identified risks but also strengthens the internal control system, while further upgrading the

efficacy of the system for strategic decision-making.

105

The risk management process

consists of risk identification, assessment or measurement,

management, monitoring and reporting.

The

risk identification

process, which involves all business lines, is an ongoing process. It is

carried out at least once a year, usually as part of drawing up the business and financial plan,

and more frequently if necessary.

The standard Solvency II formula (the regulatory method) is primarily used for

risk assessment

The formula is based on standard volatility and own risk exposure. It determines the level or a

change in parameters in the calculation under the stress scenario, and its result indicates for

each risk how much the available own funds would therefore decrease in the stress scenario.

The greater the impact of the risk of own funds, the more material the risk. The overall risk

assessment (the solvency capital requirement) takes into account the diversification specified

in the standard formula as prescribed by law. The risk assessment is complemented with the

Company's own assessment of the volatility of risk factors, generally 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 S&P credit rating agency.

At least once a year, in the context of the aforementioned

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 and/or assessment are also

taken into account in the final assessment of the method's appropriateness.

For assumed and potential risks, the target values or limits are set that must be complied with.

Appropriate

risk management

is made possible by systems that monitor risks at multiple levels

and identify potential negative trends. At the level of business lines, the latter are identified

through processes that inform key functions about transactions with increased risks. At

aggregate level, the Company regularly monitors exposure concentration and increased

volatility, where the Group's 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. Its findings and actions are

regularly

reported

to the Management Board, the Supervisory Board and the Audit Committee.

106

9.1.3

Risk classification

The Group uses risk classification in accordance with the Solvency II 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 2.8 of the

Accounting Report

The most important types of risks assumed in the course of operations are as follows:

▪

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

comprise premium risk, provision risk, lapse risk and

catastrophe risk.

▪

Life underwriting risks

comprise mortality risk, longevity risk, 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, property risk,

spread risk, currency risk and market concentration risk.

▪

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 if the company is unable to settle all due obligations or is

forced to provide the necessary funds at significantly higher costs than usual. The risk of

settling matured and contingent liabilities and market liquidity risk are monitored in the

context of the liquidity risk.

▪

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 encountered when the company 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

interruption events.

▪

Non-financial risks

to the Triglav Group's operations include material 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.

107

The Group is also exposed to

potential or emerging risks.

These are risks that may develop in the

future or that already exist but are not yet considered 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 Group's risks according to IFRS

Risks as defined by

IFRS

are

underwriting, market, credit, liquidity

and

other risks

. The Group'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 the Group considers

the latter two as part of market risks.

▪

There are no differences between the classifications of underwriting risks and liquidity risk.

▪

Other risks as defined by the IFRS include operational, capital and non-financial risks.

The situation is regularly and systematically monitored. Risk exposure and risk assessment

based on regulatory requirements and internal risk classification are reported to the

management. 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 the

identified 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 risk management system are

presented further on in the text.

9.2

Capital position

The management of 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.

9.2.1

Capital management

A well-integrated risk management system is essential to effective management of capital and

capital risk.

Strong capitalisation

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 optimal capital 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 Bonds of Zavarovalnica Triglav

for more information.

When deciding on entering into a transaction, the Company consistently assesses its

profitability in relation to the assumed risks, while pursuing the target capital adequacy, and

SASB: FN-IN-550a.3

108

takes into account the criterion of earning appropriate profit for the shareholders. The purpose

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 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 Group's credit rating. 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 Credit rating

for more information on

the credit rating.

9.2.2

Capital adequacy and the risk profile in 2023

Effective capital management enables the Group to improve its operations, adopt appropriate

business decisions and maintain its competitive advantages.

109

Explanation of differences in capital valuation in the balance sheet for solvency and financial

reporting purposes for the Triglav Group as at 31 December 2023 (EUR million)

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 2023 are described in

the Group's Solvency and Financial

Condition Report for 2023

, D and E sections. The report is published on the website

www.triglav.eu

The Group calculates capital adequacy according to the standard formula as the ratio between

total eligible own funds and the solvency capital requirement. In doing so, no adjustments and

simplifications are taken into account.

The Triglav Group was well capitalised as at 31 December 2023. Its capital adequacy was 200%.

This is within the target range of 200–250% set in line with the capital management strategic

objectives and the dividend policy criteria presented in Section

9.2.1 Capital management

Capital adequacy of the Triglav Group and Zavarovalnica Triglav

Triglav Group

Zavarovalnica Triglav

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

Available own funds (EUR million)

943.2

932.9

964.0

930.1

SCR (EUR million)

471.5

466.5

396.7

374.5

Capital adequacy (%)

200

243

248

The Group's capital adequacy was affected by the increase in available own funds by EUR 10.3

million compared to 2022. This increase resulted from an increase of EUR 8.3 million in the

reconciliation reserve. The Group's solvency capital requirement rose by EUR 5 million, mainly

due to higher capital requirements for underwriting risks (excluding health underwriting risks),

credit risks and operational risks.

110

In addition to calculating the Group's capital adequacy, at least once a year

a sensitivity analysis

the Group's

capital adequacy ratio

to major changes in selected financial market parameters

is performed. With it, the stability of the Group's capital position and its resilience to major risk

factors is assessed.

The analysis as at 31 December 2023 shows sensitivity to individual shocks on financial markets.

The sensitivity analysis of the Group's capital adequacy ratio

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

2.8 of the Accounting Report

for more information about the

types of risks assumed by the Company. In 2023, the risks described in greater detail in Section

4.1

Today’s challenges and opportunities

were also relevant.

The risk profile of the Company and the Group shows their exposure to most material risk

categories and is presented in the table below.

200%

203%

197%

203%

197%

193%

207%

209%

191%

204%

196%

50%

100%

150%

200%

250%

Capital adequacy ratio as at 31 Dec 2023

Equity investments +25%

Equity investments -25%

Interest rates +50 bp

Interest rates -50 bp

Credit spreads +50 bp

Credit spreads -50 bp

Real property +25%

Real property -25%

Exchange rates +20%

Exchange rates -20%

111

Risk dashboard of Zavarovalnica Triglav and the Triglav Group* as at 31 December 2023

Risk

assessment

(current)

Risk trend

(future)

Note

Capital

adequacy

and capital

risk

◼



In the difficult business environment, the Triglav Group maintained

strong capitalisation. The latter 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.

Underwriting

risks

◼



The Group's underwriting risks were mainly affected by extreme

weather events in Slovenia and the surrounding region, together with

claims inflation, which still persists, particularly in Slovenia. The impact

of inflation on non-life underwriting risks is adequately managed by

adjusting covers provided by products and their pricing backed by

consistent cost management. The Group maintains premium growth

and achieves the target values of indicators in strategic markets.

Market risks

◼



Persistently high inflation resulted in further interest rate rises by

central banks, which had a significant impact on financial markets.

Nevertheless, the Group continues to maintain risks at defined levels,

paying special attention to the matching of assets and liabilities, based

on which it defines optimal investment policies.

Credit risks

◼



Despite the increased exposure, credit risks remain low. This is ensured

through the regular and systematic management of individual

exposures across all segments, a review of the adequacy and quality of

reinsurance partners and a well-diversified portfolio of partners. The

credit risk assessment in 2023 was mainly affected by extreme

weather events in Slovenia, which had an impact on the reinsurance

part of credit risks.

Liquidity risk

◼



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 process, liquidity was

checked with stress tests, which confirmed that the Group companies

are well prepared for extraordinary events.

Operational

risks

◼



The Group proactively manages operational risks. Most attention is

paid

regular

maintenance

and

upgrades

outsourcing

management and the information security management system, as

cyber risks remain among the most relevant. In addition, operational

risks are primarily increased by large-scale regulatory changes and the

general human resource risk when recruiting workers in shortage

occupations. Internal interprocess risks are also managed.

* An overall assessment of the main risk categories was made on the basis of 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

The presentation of the Triglav Group's risk profile and assessments by individual risk category

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.

112

Risk profile assessment* of the Triglav Group as at 31 December 2023

* 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.

In terms of risks and capital adequacy, the Triglav Group ended 2023 financially stable,

adequately liquid and well capitalised.

9.2.3

Identified future risks

Inflation has persisted for a relatively long time. Given the actions taken by central banks, i.e.

the implementation of a restrictive monetary policy aimed at raising interest rates, inflation is

projected to return to the target range in the medium term. This may also depend on the

duration of the economic cooling and the depth of a possible recession. A substantial recession

typically also affects financial markets, which would be detrimental to the Group's operations,

potentially leading to increased market risks. 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. This could then manifest in a decrease

in the value of investments. The potential impact on interest rate risk from potential changes in

risk-free interest rates is limited due to the active management of interest rate risk through

asset-liability matching.

A more severe recession could negatively affect the demand for insurance and reduce the

volume of premium written, which would have a detrimental effect on the business. This would

also affect

liquidity risk

, which could increase due to the potential reduction of inflows from the

insurance business and a lower market liquidity of the investment portfolio.

In the coming year, underwriting and credit risks could materialise with a significant potential

impact on the Group's operations. In the context of

underwriting risks

, the Company will

continue to consistently monitor premium risks, i.e. the adequacy of the pricing policy, and

manage provision risks. For

credit risks

, the Company will continue to manage the payment

discipline of receivables and the creditworthiness of major partners, while adapting reinsurance

protection at Group level through a coordinated approach in the reinsurance market.

As part of testing the sensitivity of the Group's credit portfolio, the factors that could have a

material impact on the Company's and the Group's operations 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

52%

28%

55%

25%

Underwriting risks

Market risks

Operational risks

Credit risks

Risks of companies

from other financial

sectors

Risks of residual

companies

2022

2023

113

significant impact on operations. 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.

The Company's sensitivity analysis to the payment discipline of receivables was tested under

the assumption of a lower 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 Group's operations, as expected payments would be

EUR 1.1 million lower.

Sensitivity analysis as at 31 December 2023* (EUR)

Total impact on equity

Triglav Group

Zavarovalnica Triglav

Spread risk (+50 bp)

-32,621,504

-27,108,919

Interest rate risk (+100 bp)

-5,455,390

-5,167,115

Equity risk (-10%)

-8,626,899

-5,728,713

Property risk (-5%)

-24,636,359

-21,972,284

Total

-71,340,152

-59,977,031

* The effects shown include the tax aspect and the indirect impact of the change in these assets on liabilities (for life insurance).

A sensitivity analysis shows potential impacts on the Group's capital in the case of a loss event,

which would translate into a sudden rise in interest rates by 100 basis points and the increase

in credit spreads by 50 basis points, as well as a drop in equity exposure by 10 percentage points

and in real property exposure by 5 percentage points. Should this event be realised, the Group's

capital would decrease by EUR 71.3 million.

114

10.

Development activities

High-quality assistance services are complemented by hybrid service systems and

integrated ecosystem solutions based on collaborative platforms.

The user experience of Triglav's TRIA virtual assistant was improved by using artificial

intelligence.

This innovation has positioned the Company as a leader in the use of artificial

intelligence in the insurance industry.

The twelve mutual funds were redesigned so as to take into account the sustainable aspects

of investments.

New software solutions were implemented to optimise the inspection and assessment

processes of non-life insurance claims, facilitating the calculation and payment of

compensation following an inspection.

The own sales network was reorganised and the decision-making process was streamlined

through a leaner organisational structure.

The strategic guidelines define the Group's development activities in both activities: insurance

and asset management. Their common denominator is a client-centric approach that guides the

development of the Group's processes, products and services across all markets. Data

management is being strengthened through advanced analytics, and the digital transformation

is being continued, with the automation of processes and the use of artificial intelligence as

essential components, along with the planned migration of key systems to the hybrid cloud. All

these elements converge in our flexible client approach, which is becoming progressively

personalised. Client services are being streamlined, with added value provided through the

development of service ecosystems where the Company assumes a leading role, as well as by

integrating its services into the offerings of partners in other industries, such as banking and

retail. Through process automation, diversified channels and a flexible internal organisation, the

Company effectively supports its clients even in extreme circumstances.

In the insurance activity, significant emphasis is placed on preventing loss events through

preventive action, which is described in Section

11. Sustainable development at the Triglav Group

As part of the asset management activity, alongside business digitalisation, particularly with

respect to sales processes, sustainable aspects of management and investment policies are

being implemented in line with the Group's Sustainable Development Policy, as described below.

10.1

Enhancing the client-centric approach

Modern digital solutions

are used to make it easier for clients to report and track a claim as well

as to receive comprehensive information. Cooperation with contractors, including both service

providers and suppliers of goods, is being expanded. The Company is recognised as the provider

of high-quality assistance services, which are complemented by hybrid service systems and

integrated ecosystem solutions based

on collaborative platforms

Service-oriented business models and integrated ecosystems

Excellent client experience is prioritised when utilising the strengths of the

Triglav Dom

(Triglav

Home) platform. The platform provides assistance with comprehensive repair services by

organising and supervising their execution and reimbursing contractors. These contractors are

selected based on the qualifications, responsiveness and quality of services.

115

The network of veterinary clinics in the

Triglav Male živali

(Triglav Pets) ecosystem was further

expanded.

In the

Triglav Zdravje

(Triglav Health) ecosystem, comprehensive healthcare services are

provided to meet the needs of clients at all stages of life. New partners – healthcare providers

were added. Existing partnerships, the range of assistance and healthcare services, and the use

of advanced technologies were upgraded.

Diverse and streaming sales and communication channels

The own sales network

was reorganised and the decision-making process was streamlined

through a leaner organisational structure. Parts of the sales process were centralised, and a

support department was set up to provide quick and efficient support to sales staff.

Sales campaigns

were conducted through a multi-channel and coordinated approach, utilising

both the agent network and online channels.

The automated execution of marketing campaigns

in direct marketing was significantly enhanced. Over 15,000 new verified users were recorded

using the

i.triglav

digital office.

digital sales

, the foundations for operational sales processes were established, encompassing

the entire sales funnel from lead generation to after-sales activities. A digital marketing and

sales automation module, along with machine learning models, were introduced to predict the

most suitable products and the risk of abandonment.

New, upgraded and integrated insurance products and application interfaces

Geographic information system (GIS) functionalities

were enhanced to allow agents to view

flood, hail and earthquake risk classes. This allows them to provide clients with a broader

understanding of their exposure to these risks, which can help them make the right insurance

decision.

As part of a successfully completed project to optimise

online insurance sales

, six insurance

products were redesigned, leading to an improved user experience.

A variety of development activities were also carried out

in the Group's insurance companies

outside Slovenia

to enhance the client experience.

▪

Croatia:

A life insurance sales portal was launched, online sales of health insurance that

includes assistance were revamped, and a new underwriting tool was introduced.

▪

Serbia:

To enhance the efficiency of selling health insurance with assistance, a paperless

sales portal was developed, the e-invoicing process for clients was customised, and the call

centre's health insurance support processes were upgraded.

▪

North Macedonia:

A mobile app was launched for reporting claims for comprehensive

insurance, along with the option to inspect a vehicle before insuring it and to carry out

remote inspection for motor vehicle claims settlement.

▪

Federation of BiH:

Online underwriting of health insurance was launched, communication

options with clients via digital channels were expanded, and automated notifying for life

insurance was enabled.

▪

Montenegro:

Additional entries in the transaction system for the own sales network were

enabled, facilitating underwriting.

The focus is on

integrating insurance products into the product range of our partners

. Products

and services that complement theirs were offered in joint sales and promotional campaigns.

116

Across the Adria region, cooperation with existing partners in mass schemes was increased, and

partnerships with car dealerships, financial institutions and insurance intermediaries were

strengthened.

In markets where the Group is not directly present

, existing partnerships with insurance agency

companies are being deepened, and new partnerships are being established to expand the

Group's product range. Even greater emphasis was placed on expanding the Group's

international

reinsurance

business,

achieved

through

collaboration

with

international

brokerage companies and contractual agency cooperation. In this segment, the Group's high-

quality, safe and flexible services are gaining increasing international recognition.

Products and services were developed

with a focus on responsiveness, simplicity and reliability.

The transfer of good practices within the Group continued, achieving synergistic effects between

Group companies backed by a unified market presence.

▪

Property and interest in property insurance:

A new solar power plant insurance product was

launched. The geographic information system was upgraded to underwrite risks for flood

and landslide hazards. Our products were continually adapted to address new risks (such as

cyber risks and mandatory statutory insurance) and meet evolving client needs.

▪

Motor vehicle insurance:

The approach to commercial discounts for retail clients was

streamlined, and the treatment of the highest-risk policyholders was revised. New solutions

were developed for leasing and roadworthiness test providers, as well as vehicle importers.

▪

Agricultural insurance:

A personalised approach to fruit and hops insurance was introduced.

Additionally, new coverage for the transport of small animals was offered, and a product to

cover their medical costs is currently under development.

▪

Credit insurance:

The focus in selling insurance through banks was on implementing a new

underwriting programme. In addition, the general terms and conditions of suretyship

insurance were revised.

▪

Life and accident insurance:

Work incapacity life insurance was transformed into

complementary insurance, allowing to better tailor the coverage to the client. Accident

insurance for children and young people was redesigned. The insurance product range and

underwriting of life insurance for young people are being adapted. The choice of funds

included in unit-linked life insurance strategies, as well as the funds themselves, is regularly

updated to achieve set financial objectives.

▪

Health

insurance:

The

content

and

covers

Specialisti

(Specialists),

Specialisti+

(Specialists+),

Zobje

(Dental) and

Zobje+

(Dental+) health insurance products were

upgraded. 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. The sales process for group health insurance products was overhauled. Triglav

zdravje asistenca, the Group's specialist provider of healthcare and assistance services,

launched a self-pay family medicine clinic, which also provides home care services.

▪

Pension insurance:

The age brackets of the pension funds managed by Triglav, pokojninska

družba and Zavarovalnica Triglav were harmonised.

Enhanced business analytics is used to monitor and analyse the sales results of all savings

products of the supplemental voluntary pension insurance of the Group in Slovenia.

CRM B2B was revamped to plan and analytically monitor sales and after-sales activities with

employers funding the Group's pension schemes in Slovenia.

10.2

Digital transformation

The deepening of the Group's client focus is facilitated by the acceleration of its business

digitalisation in 2023, which streamlined the Group's processes through innovative solutions.

117

A significant milestone was reached in the

use of artificial intelligence

(AI) in the Company and

the Slovenian insurance industry with the innovative upgrade of the TRIA virtual assistant.

Mechanisms based on OpenAI technology were implemented, playing a key role in enhancing

the user experience. This upgrade improved service quality by providing clients with a more

natural, flexible and interactive communication experience. This innovation has positioned the

Company as a leader in the use of AI in the insurance industry.

The Group's development activity in the field of AI is diversified. Automated solutions were

implemented for replying to emails using OpenAI ChatGPT, which are updated alongside the

knowledge base and administrative procedures, and automatically generate a summary of the

recorded conversation between the client and the agent. Additionally, the distribution of emails

from the incoming email address to the relevant back-offices was automated. A new universal

AI assistant is being developed, which will possess multi-disciplinary skills and will be accessible

through various channels and formats. Furthermore, a coherent AI strategy is being developed

to enable the use of the same building blocks and solutions across multiple departments.

Robot programming techniques are being introduced to back-office staff, in addition to

automating work processes. Several bots are already handling queries for internal and external

data. The status of recovery procedures is monitored using an upgraded Power BI reporting

system.

The Group is

systematically expanding the capabilities

of fully supported multi-channel

operations

for receiving claims

. By standardising data recording when reporting a claim in the

CRM system, clients are able to switch between reporting channels during the claims reporting

process. Electronic signing of claims documentation was introduced. Assistance cases can now

be reported without the need for a telephone call. Additionally, clients can report motor vehicle

insurance liability claims to individual contractors, and email and text message notifications

were upgraded to include functionality for providing additional documents.

New software solutions

(GSM-GIS modules) were implemented to optimise the inspection and

assessment processes of non-life insurance claims, facilitating calculation and payment of

compensation following the inspection. By implementing digitalised solutions to mitigate risks

during periods of CAT claims, clients were able to receive information via the web portal and

upon receipt of a claim report. These notifications provided guidance on appropriate actions to

take and outlined follow-up steps to be taken after a claim was reported.

A new platform for promoting insurance sales through digital channels enabled segmented

client treatment as well as automated sales and after-sales campaigns.

Online underwriting of comprehensive car insurance was launched, with the possibility to

inspect vehicles remotely, and support for online underwriting of motorcycle insurance. The

Company was the first insurer in Slovenia to enable remote inspection for online home

insurance.

By establishing the new

IT – User Empowerment Department, an IT-related

organisational unit

comprehensive implementation of modern technologies such as robotic process automation,

low-code development of software solutions and the integration of artificial intelligence into

internal business processes was ensured. Moreover, the activities of the Council of Architects

and the Council of Security Experts were combined to more effectively implement the target IT

system architecture and manage cyber risks.

As part of the digital transformation

, a new data warehouse solution was implemented, and

activities commenced to transfer parts of the data platform to subsidiaries. The network and

server infrastructure was upgraded to ensure the stable, efficient and secure operation of

118

information systems and services. Projects to centralise the IT infrastructure continued, aiming

to increase equipment utilisation across the Group, reduce maintenance costs and implement

additional security mechanisms. As part of this process, 11 companies will be included in the

Group's hybrid cloud by 2025.

Core and support IT systems were upgraded for reporting under the new IFRS 17 accounting

standard and for the digitalisation of non-insurance documents.

10.3

Asset management development:

An important development step was taken by renewing

Triglav Skladi

's product range. The

twelve mutual funds managed by Triglav Skladi were redesigned so as to take into account the

sustainable aspects of investments. This change means a significant upgrade of the Company's

and the Group's investment solutions focused on sustainable development. The company's

mutual funds are also effectively sold in the context of the Group's unit-linked life insurance

products. Triglav Skladi's competitive position was strengthened by providing a more advanced

and user-friendly experience to internal and external users of the company's services. In early

2023, Triglav Skladi launched a comprehensive digital marketing and sales development project,

encompassing more effective digital marketing initiatives, a sales performance monitoring tool

and sales support tools. Also, sales through its own channels will be accelerated with the

development of a new mobile app for digitally-enabled sales. The complex implementation of

the new IT solution for fund management and discretionary mandate services was continued to

ensure the effective digital implementation of business processes.

Triglav, pokojninska družba

, updated its management rules and investment policy statements.

The most significant changes involve an increase in investment limits for transferable equity

securities and equity investment funds in the following pension funds:

Delniški Skupni

pokojninski sklad

and

Mešani Skupni pokojninski sklad

. This adjustment in the strategic allocation

of these funds, which do not guarantee returns, aims to enable the two guarantee funds to

achieve higher risk-adjusted long-term returns and align more closely with the Group's

investment policies. In line with the Group's strategic guidelines, Triglav, pokojninska družba

adopted the Sustainable Development Policy, Sustainable Investment Policy and Statement on

principal adverse impacts of investment decisions on sustainability factors. In the context of the

latter, a list of sensitive economic activities was defined that reflect the Group's views on the

protection of the environment, society and respect for human rights, as it pays particular

attention to these aspects.

With respect to

the platform for investing in alternative investments

, which is developed by

Trigal

, the activities planned to increase the assets under management continued. In 2023, a

new alternative real estate fund (Trigal RE Fund) with no maturity was launched in Slovenia and

offered to Slovenian investors.

119

Non-financial statement

Sustainability (ESG) aspects of business are integrated in the Triglav Group’s very mission and

strategic guidelines. They are incorporated in business processes, thereby promoting the

transition to a sustainable society. In 2023, the Group upgraded its social and environmental

commitments by adopting the Sustainable Development Policy and the Sustainable Investment

Policy.

For non-financial reporting, 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 2023 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

11. Sustainable development at the

Triglav Group

▪

The main risks related to the abovementioned areas are presented in sections

9. Risk

Management

10. Development activities

and

11. 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 2023

▪

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

Commission Delegated Regulation (EU) 2021/2178 of 6 July

2021 supplementing Regulation (EU) 2020/852 can be found in

the Appendix: Disclosures

under the EU Taxonomy Regulation

Andrej Slapar

President of the Management

Board

Uroš Ivanc

Management Board

Member

Tadej Čoroli

Management Board

Member

Marica Makoter

Management Board

Mamber

Blaž Jakič

Management Board

Member

120

11.

Sustainable development at the Triglav Group

The integration of the business and ESG strategies was further enhanced by the Sustainable

Development Policy of Zavarovalnica Triglav and the Triglav Group, and the Sustainable

Investment Policy of Zavarovalnica Triglav and the Triglav Group.

In pursuit of its ESG strategic ambitions, the Company entered into a partnership with the

Chapter Zero Slovenia platform, became a signatory to the United Nations Principles for

Responsible Investing (UN PRI) and a member of CER, the Slovenian Partnership for

Sustainable Economy.

By redesigning its twelve mutual funds and pursuing a sustainability strategy in the

discretionary mandate services segment, the value of assets under management that

incorporate sustainability aspects increased significantly; at the 2023 year-end, the value of

these assets reached EUR 1.1 billion.

Education and training were systematically provided, and a number of activities were

implemented to ensure a healthy and safe environment for our employees.

Scope 1 and Scope 2 carbon footprint and electricity consumption decreased by 6%.

11.1

Our approach to sustainability

In the Triglav Group's strategic ambitions for sustainable development (ESG) covering the period

of 2021–2025, it is set out that by pursuing sustainability goals the Group is 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. This approach is pursued across all four key

areas: insurance and asset management, own business processes, responsible stakeholder

engagement and effective corporate governance.

In 2023, the Group's strategic ambitions were further developed with the adoption of its

Sustainable Development Policy

. Serving as the overarching document for the Group's

sustainability-related activities, it outlines the method of implementing the strategic ambitions,

establishes the system for managing ESG aspects and risks, defines key corporate governance

policies and provides guidelines for sensitive economic activities.

At Group level, sustainability-related activities, which are carried out by all Group companies,

are coordinated by the Sustainable Development Department and monitored by the Compliance

and Sustainable Development Committee. Decisions are made by the parent company's

Management Board, as described in more detail in the

Sustainable Development Policy.

Key stakeholders are involved in identifying the material impacts of the Group's operations and

related non-financial disclosures. The main sustainability impacts are presented in the

materiality matrix for ESG topics, which is revised based on regular surveys on the impacts on

stakeholders, their interests and satisfaction factors. It includes quantitative and qualitative

surveys of employees, individual clients, NGOs, local communities and corporate clients as key

stakeholders of the Group, as well as an internal evaluation of the importance of various topics.

In 2023, the materiality assessment of topics was reviewed and updated based on a quantitative

survey conducted among more than 600 clients and other respondents from Slovenia, in

addition to a study of regulatory trends in the EU and information obtained from domestic and

foreign investors. See Section

11.1.1 Key stakeholders

for more information about stakeholders

and their engagement.

121

Importance of ESG topics for stakeholders and the Triglav Group

GRI 3-2, 2-12, 2-13, 2-16.

122

About the report

This report was compiled in accordance with International Financial Reporting Standards (IFRS),

the Companies Act (ZGD-1J) and the Insurance Act (ZZavar-1). Its content and data are collected

by the competent departments of the Company's, which is responsible for reporting in

cooperation with the respective departments at subsidiaries. Reporting refers to a particular

financial and calendar year.

The report is integrated and includes sustainability disclosures, i.e. environmental, social and

governance (ESG) disclosures. It was compiled by using GRI standards (Global Reporting

Initiative) and their guidelines for the financial sector as well as SASB standards (Sustainability

Accounting Standards Board). The range of topics and disclosures is presented in the GRI and

SASB indices and the materiality matrix. Progress in ESG areas is presented mainly in Section

Sustainable development at the Triglav Group

, but it is also described in other sections, as evident

from the GRI and SASB references. In doing so, the information required by the EU Taxonomy

Regulation (Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing

Regulation (EU) 2020/852) is disclosed. The financial reporting for the Group comprises all

companies included in the consolidated financial statements (See Section

2.3 of the Accounting

Report

for more information). Reporting of environmental and human resource data refers to all

Group companies that are fully consolidated and have office space and/or employees. For the

remaining ESG disclosures, notes to individual disclosures indicate which companies are

included. The calculation methodology for individual indicators is described in the text and

notes.

11.1.1

Implementation of strategic guidelines and sustainable development goals of the Triglav

Group

In achieving the ambitions regarding the ESG goals for 2025, progress was made in all four key

areas.

▪

Insurance and asset management

The share of green, sustainable and social impact bonds in the Group's investment portfolio

grew. Guidelines for sustainable investments and investments in sensitive economic activities

in terms of sustainability risks were outlined in the Sustainable Development Policy and the

Sustainable Investment Policy of Zavarovalnica Triglav d.d. and the Triglav Group. The Group

does not have any investments from issuers at which at least 20% of electricity generation or

income stems from coal (Coal Exit List).

With respect to clients' assets under management, 12 mutual funds were redesigned to

incorporate newly defined sustainability aspects of investments, ensuring compliance with the

criteria specified in Article 8 of the SFDR. The value of these assets rose from EUR 49.2 million in

2022 to EUR 1.1 billion by the end of 2023. Plans are underway to extend this approach to the

entire range of funds in 2024. Additionally, efforts are being made to implement sustainability

in the investment processes within the discretionary mandate services segment.

Social and environmental benefits are further promoted through product development within

the insurance business. Utilising the internal sustainability assessment methodology, clear,

comprehensive and up-to-date information on the sustainability of products throughout their

entire lifecycle is provided, i.e. spanning from the development phase to the promotion and

distribution of the insurance product.

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

SASB FN-IN-410a.2.

123

▪

Own business processes

The Group's Scope 1 and Scope 2 carbon footprint decreased by 6% in 2023. Awareness about

energy conservation and the importance of sustainable practices is raised among employees,

while promoting sustainable mobility. Solar power plants began to operate on the roofs of five

of the Company's office buildings in 2023 and will cover around 10% of its annual electricity

consumption. The share of electric and hybrid vehicles in the fleet grew from 8% to 12%. The

Group companies took many additional measures related to digitalisation and paperless

operations. The total quantity of waste generated at Group level declined by 6%. The Group

effectively reduced office paper consumption per employee by 32%.

▪

Responsible stakeholder engagement

Measures were taken to support both the professional and personal development of employees,

promote active leisure time and foster a healthy work-life balance. Training on ESG topics is

provided through the e-learning portal. Both employee and client satisfaction scores

experienced a slight decline compared to previous years, attributed to the impact of major CAT

events and inflationary pressures. Efforts were made to ensure that shareholders and investors

had sufficient information on which to base their investment decisions, to encourage them to

attend the general meeting of shareholders and to actively engage with them. Corporate social

responsibility partnerships and projects, such as the Let's Clean the Mountains drive and the

volunteering activities within the Insure Our Future project, were continued. Safe mobility

activities are described in Section

11.3.3.1 Investment in prevention.

Sustainability criteria were

integrated into all of our events, including the Triglav Run and Our Day.

▪

Effective corporate governance

The Group aims to achieve high corporate governance standards, while improving the public

disclosures of its sustainable business and operations. In 2023, several important steps were

taken for the long term. Preparations for the requirements of the Corporate Sustainability

Reporting Directive (CSRD) were initiated, while the international GRI and SASB standards have

been applied for several years. The Group disclosed through CDP's climate change questionnaire

for the third year in a row. The Company joined the

Partnership for a Sustainable Economy

(CER)

and received the Green Star 2022 certificate for effectively incorporating sustainability principles

in its business. The adoption of the Group's

Sustainable Development Policy

and the

Sustainable

Investment Policy

outlined its approach to considering ESG factors in the investment process.

Following the Group's guidelines, all companies prepared and approved their own sustainable

development policy. Furthermore, the Company entered into a partnership with the

Chapter

Zero Slovenia platform

for responsible corporate governance and became a signatory to the

United Nations Principles for Responsible Investing

(UN PRI), which encourage asset managers

to invest responsibly for a fairer and greener future.

See Section

4. Triglav Group strategy and plans

for more details about the achievement of

strategic ambitions in sustainable development (ESG).

124

Delivering on sustainable development goals

Transition to a climate-neutral and resilient circular economy

↓

1.54

tCO

e (the carbon footprint) per employee in the Group and 1.46 tCO

e at Zavarovalnica

Triglav (Scopes 1 and 2)

99%

of electricity consumed at Zavarovalnica Triglav comes from renewable sources (

62%

Group level)

↑

19%

rise in premium written by the Group from products with environmental and social

impacts

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 using the location-based

method by 15% per employee. Implementing the European Green Deal on carbon neutrality by

2050.

Responsible stakeholder and community engagement

↓

73 NPS

for the Group,

↓

69 NPS

for Zavarovalnica Triglav – high client satisfaction

↓

3.94

– the ORVI index, high satisfaction of the Group's employees

1.4

billion

km driven with the DRAJV safe driving apps

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).

Comprehensive corporate governance

↑

43%

share of women at first and second management levels under the Management Board,

25%

of women in management and supervisory bodies

Adopted the Sustainable Development Policy and the Sustainable Investment Policy.

A signatory to the United Nations Principles for Responsible Investment (PRI), the United Nations

Principles for Sustainable Insurance (UN PSI) and the Partnership for Carbon Accounting

Financials (PCAF) initiative.

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).

Sustainable aspects of asset management

↑

11,1%

share of social impact, green and sustainable bonds in debt securities of the Group's

investment portfolio

mutual funds redesigned to incorporate sustainability aspects of investments. The value of

these assets under management increased to EUR 1.1 billion.

The Group does not have any investments from issuers at which at least 20% of electricity

generation or income stems from coal (Coal Exit List).

To double the share of social impact, green and sustainable bonds in debt securities by 2025.

125

11.1.2

Key stakeholders

The following were identified as the Group's key stakeholders:

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, as well as the impacts of the Group's operations on them, 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.

Interests, opinions, and suggestions are regularly monitored by

analysing the needs and

interests of stakeholders

. Based on this analysis, the scope of disclosures is outlined. See Section

11.1 Our approach to sustainability

for further information.

Gained knowledge and guidelines are taken into account as much as possible in the Group's

business and operations. The table below shows the key stakeholder interests identified, the

forms of engagement with them and the key results of the engagement.

GRI 2-29.

126

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

▪

Clear terms and conditions

▪

Quality insurance and financial products and

services

▪

A broad range of quality assistance services

▪

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 apps

▪

Marketing communication

▪

773,699 telephone conversations in Zavarovalnica

Triglav's call centres

▪

86,209

replied electronic messages in Zavarovalnica

Triglav

▪

More than 31,000 subscribers to the newsletters

Vozim

(I'm driving) and

Vse bo v redu

(Everything Will Be

Alright).

▪

228,174 users of the i.triglav digital office.

▪

More than 50,000 regular users of the

Vse bo v redu

and

the

Vozim se

portals.

▪

NPS of the Group is 73 and 69 of Zavarovalnica Triglav.

▪

327,200 processed claim files at Zavarovalnica Triglav.

▪

3,897 complaints and 46 compliments in Zavarovalnica

Triglav: the rate of complaints was 1.16% compared to

1.22% in the previous year.

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

▪

Participation in management

▪

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

▪

3.94 – the ORVI index at a high level

▪

25% 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 82% of the parent

company are included.

▪

32 training hours per employee at Group level.

▪

A family-friendly enterprise

SASB: FN-IN-270a.2.

127

Stakeholders

Key interests

Engagement method

Engagement results

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

▪

Presentation for Investors

▪

Active contact and relations with institutional

investors (investor conferences, individual

meetings, conference calls)

▪

Organised presentations for retail shareholders

(individual investors) and provision of information

▪

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.

▪

29 publications of controlled information (all in

Slovenian and English).

▪

9 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

▪

11 complaints with respect to personal data protection

at the Triglav Group, 5 of which were partially grounded.

▪

1,119 fraud cases confirmed out of 1,771 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

▪

865 assessments of suppliers according to regulatory

and expanded sustainability criteria to check suppliers'

compliance with employee rights, human rights and

environmental legislation.

128

Stakeholders

Key interests

Engagement method

Engagement results

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

▪

The Insure Our Future communication platform brings

together more than 200 partners to implement

sustainability-related activities to achieve UN goals.

▪

Support for 141 young talents in eleven years of the

Young Hopes project.

▪

2,200 motorcyclists attended safe driving workshops

over ten years.

▪

A total of 113 events to promote insurance literacy, risk

awareness, presentation of products and services were

held.

▪

24 sponsored top athletes in Slovenia.

▪

EUR 3.3 million for prevention activities, EUR 4.7 million

for sponsorships and EUR 0.9 million for donations.

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

▪

55 press releases by Zavarovalnica Triglav.

▪

388 answers to the questions of the press by

Zavarovalnica Triglav.

▪

9,217 publications related to key topics about the

Triglav Group in the media.

129

11.2

Environmental aspects

11.2.1

Protection of the environment in business processes

In realising its responsibility to the natural environment, the Group focuses on areas on which

it, as an insurance and financial institution, has the most significant influence. This objective is

achieved by adhering to its Sustainable Development Policy and strategic ambitions. In its

business processes, the Group reduces its environmental impact 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.

The share of electric and hybrid company cars

at Group level stood at 12% in 2023 (8% in 2022)

and 30% at the parent company (18% in 2022). At Group level, 52 electric vehicles, 23 hybrid

vehicles and 25 company bicycles are available to employees, in addition to 32 electric scooters

for short trips. In Ljubljana, the less-used company cars are being gradually replaced with electric

cars as part of the car sharing service. To encourage eco-friendly mobility, 22 own electric car

charging stations were set up at all key locations. Two locations in Ljubljana have space for

electric bicycles from the public bike rental system, and a secure bicycle storage facility was set

up at Dunajska cesta 22.

Employees are encouraged to drive safely and reduce fuel consumption by using the DRAJV app

and taking part in safe driving courses. Paper consumption is reduced by developing software,

through electronic archiving and digitalisation of business processes.

The quantity of plastic

waste is reduced by using company mugs and water bottles.

11.2.2

Carbon footprint

In 2023, the Group's carbon footprint (Scopes 1 and 2)

decreased by 6%

year-on-year, and by 25%

compared to the 2019 base year.

The Group's

Scope 1 carbon footprint

was at the same level as the previous year, but at the

Company it increased by 5% due to the higher consumption of energy from own capacities.

Compared to the 2019 base year, Scope 1 carbon footprint at Group level declined by 4%.

Scope 2 carbon footprint

fell by 8% at Group level according to the location-based method and

by 9% at the Company. The Group's Scope 2 carbon footprint decreased by 11% according to the

market-based method, which takes into account emission factors obtained from the energy

supplier, and that of the Company by 13%. The decrease is due to lower overall electricity

consumption and, at Group level, an increase in the share of green electricity purchased. The

Company purchased almost all of the electricity used for its own premises from renewable

energy providers.

Scope 3 carbon footprint

at Group level remained at the same level year-on-year and 19% lower

compared to 2019. The largest share of Scope 3 carbon footprint was accounted for by

employees commuting to work, business trips and purchases of computer equipment. Both the

Group and the parent company increased their business trip emissions by 7%. Emissions from

employees commuting to work decreased by 1% both at Group level and at the parent company.

GRI 3-3, 306-2.

GRI 3-3, 305-1, 305-2, 305-3.

130

The Triglav Group's carbon footprint by scope

GHG emissions in tCO2e

Index

2023

2022

2019 base

year

2023/2022

2023/2019

Scope 1 – Direct GHG emissions

2,667

2,678

2,790

100

- Scope 1.1 – Consumption of energy products from own capacities

688

580

810

119

- Scope 1.2 – Fuel consumption of company cars

1,978

2,098

1,981

100

Scope 2 – Indirect GHG emissions (location-based)

5,464

5,971

8,068

Scope 2 – Indirect GHG emissions (market-based)

4,011

4,485

7,345

Scope 3 – Other indirect GHG emissions

8,206

8,180

10,098

100

- Business travel (plane, train, bus, car)

1,451

1,360

1,963

107

- Purchase of computer equipment

545

388

705

140

- Waste management

204

200

102

435

- Employee commuting to work

5,849

5,928

6,565

- Paper consumption – internal

130

431

- Paper consumption – external

165

364

- Water consumption

126

Total Scope 1–2 GHG emissions

8,131

8,649

10,859

Total Scope 1–3 GHG emissions

16,336

16,829

20,957

Carbon footprint (Scope 1–2) per employee

1.54

1.63

2.00

Following the change in data capture, the data for 2019 and 2022 were adjusted.

The Triglav Group's carbon footprint by scope in 2019–2023 in tCO

Zavarovalnica Triglav's carbon footprint by scope

GHG emissions in tCO2e

Index

2023

2022

2019 base

year

2023/2022

2023/2019

Scope 1 – Direct GHG emissions

724

693

938

105

- Scope 1.1 – Consumption of energy products from own capacities

286

180

393

159

- Scope 1.2 – Fuel consumption of company cars

438

513

546

Scope 2 – Indirect GHG emissions (location-based)

2,555

2,806

3,719

Scope 2 – Indirect GHG emissions (market-based)

1,269

1,452

3,676

Scope 3 – Other indirect GHG emissions

5,263

5,310

5,565

- Business travel (plane, train, bus, car)

1,047

983

1,369

107

- Purchase of computer equipment

283

210

315

135

- Waste management

418

- Employee commuting to work

3,792

3,837

3,463

109

- Paper consumption – internal

- Paper consumption – external

146

322

- Water consumption

102

Total Scope 1–2 GHG emissions

3,280

3,499

4,657

Total Scope 1–3 GHG emissions

8,543

8,809

10,223

Carbon footprint (Scope 1–2) per employee

1.46

1.57

1.95

Following the change in data capture, the data for 2019 and 2022 were adjusted.

2.000

4.000

6.000

8.000

10.000

2023

2022

2021

2020

2019

Scope 3 – Other indirect GHG emissions

Scope 2 – Indirect GHG emissions (location-based)

Scope 1 – Direct GHG emissions

131

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.

In accordance with the carbon footprint calculation methodology, certain data of the parent company and its

subsidiaries were adjusted up to the 2019 base year. The adjustments mainly relate to taking into account data

relating to the consumption of tenants of office premises.

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

2023 to 31 December 2023 for Zavarovalnica Triglav d.d. and the Triglav Group.

Use of energy products

The Group consumed 1,552 tonnes of oil equivalent (TOE) of energy on heating, cooling, lighting

and electrical and electronic equipment, down by 4% relative to 2022, while the Company

reduced its energy consumption by 2%. Both the Group and the parent company saw the largest

increases in gas consumption, while consumption of fuel oil, electricity and water for heating

decreased.

Solar power plants were installed on the roofs of five of the Company's office buildings at the

end of the year, which will cover around one tenth of its annual electricity consumption.

Employees were educated on the more rational use of energy (proper ventilation, consistent

switching off of appliances after use), in addition to limiting the temperature in offices and sales

areas and domestic hot water temperature.

When renovating premises, priority is given to highly energy-efficient equipment. Additionally,

for new forced-air ventilation installations, integrated heat recovery systems are used. All new

premises and advertising signs are fitted with LED lighting. When replacing lighting in

basements and garages, lighting sensors are installed in addition to LED lights (see Section

8.5

Investment in own-use real property and equipment

for further information).

132

Use of energy products at the Triglav Group and Zavarovalnica Triglav in energy product unit

Index

Quantities

2023

2022

2019 – base

year

2023/2022

2023/2019

Triglav Group

Heating water

kWh

4,347,328

4,943,441

4,713,720

Fuel oil

13,115

29,410

89,790

Gas

kWh

2,970,584

2,221,206

2,581,140

134

115

Wood pellets

38,750

49,030

26,000

149

Electricity

kWh

10,341,736

11,015,428

11,269,874

Green electricity

kWh

6,374,018

6,500,791

117,659

5,417

Green electricity (%)

61.6

59.0

1.0

104

5,904

Zavarovalnica Triglav

Heating water

kWh

3,634,507

4,167,600

4,043,670

Fuel oil

7,959

15,520

23,414

Gas

kWh

1,330,257

723,129

1,732,335

184

Wood pellets

Electricity

kWh

5,701,785

5,991,621

6,291,109

Green electricity

kWh

5,667,141

5,965,093

117,659

4,817

Green electricity (%)

99.4

99.6

1.9

100

5,314

Following the change in data capture, the data for 2019 and 2022 were adjusted.

Use of energy products at the Triglav Group and Zavarovalnica Triglav in tonne of oil equivalent

(TOE)

TOE (ton equivalent)

Index

2023

2022

2019 – base

year

2023/2022

2023/2019

Triglav Group

Heating water

374

425

405

Fuel oil

Gas

262

196

228

134

115

Wood pellets

149

Electricity

889

947

847

105

Green electricity

548

559

6,772

Total

1,552

1,614

1,568

Zavarovalnica Triglav

Heating water

313

358

348

Fuel oil

Gas

117

153

184

Electricity

490

515

433

113

Green electricity

487

513

6,021

Total

927

951

954

Following the change in data capture, the data for 2019 and 2022 were adjusted.

Waste management

The waste separation and disposal system depends on the waste management system at the

local level or at the level of the country in which a particular Group company operates. Full waste

separation is carried out in Slovenia, whereas in some other countries waste separation and

disposal is not yet fully regulated, therefore the quantity and type of waste are often not

available. Employees in all companies are encouraged to reduce their consumption of water,

paper, and packaging, and to consistently separate waste.

Compared to the year before, the total quantity of waste generated in 2023 decreased by 6% at

Group level and by 8% at the Company. The higher quantity of paper waste resulted from an

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 m

of natural gas. GRI 302-1.

GRI 306-1, 306-2, 306-3, 306-4, 306-5.

133

increase in the volume of archival material. The share of recycled waste increased to 34.3% at

Group level and 44.5% at the Company.

In 2023, 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 13 at Group level

(compared to 19 in 2022) and to 5 at the Company (compared to 18 in 2022).

Waste management at the Triglav Group and Zavarovalnica Triglav

Triglav Group

Index

Unit

2023

2022

2019 – base year

2023/2022

2023/2019

Paper

117,353

113,796

85,443

103

137

Biological waste

31,906

41,232

12,567

254

Packaging

57,411

65,957

53,328

108

Glass

6,535

3,960

5,396

165

121

Mixed waste

399,723

436,509

415,353

Electrical equipment and other

8,251

2,327

5,861

355

141

Total recycled waste

213,205

224,945

156,734

136

Total waste intended for removal

407,974

438,836

421,214

Total waste generated

621,179

663,781

577,948

107

Water consumption

75,142

70,873

68,847

106

109

Waste per employee

118

125

110

107

Zavarovalnica Triglav

Index

Unit

2023

2022

2019 – base year

2023/2022

2023/2019

Paper

80,968

72,670

38,818

111

209

Biological waste

26,569

36,247

9,849

270

Packaging

23,215

36,448

29,929

Glass

2,951

724

971

408

304

Mixed waste

159,584

179,400

180,327

Electrical equipment and other

7,258

1,777

5,852

408

124

Total recycled waste

133,703

146,090

79,567

168

Total waste intended for removal

166,842

181,177

186,179

Total waste generated

300,544

327,267

265,746

113

Water consumption

18,088

21,134

23,071

Waste per employee

134

146

120

112

Paper consumption at the Triglav Group and Zavarovalnica Triglav

Paper consumption in kg

Index

2023

2022

2019 – base year

2023/2022

2023/2019

Triglav Group

Total paper consumption*

158,728

321,002

817,114

Paper consumption by employees (A4 and A3)

88,920

131,356

369,200

Average daily office paper consumption per employee (sheets)

Zavarovalnica Triglav

Total paper consumption*

59,640

211,006

409,710

Paper consumption by employees (A4 and A3)

14,266

52,460

72,090

Average daily office paper consumption per employee (sheets)

* Includes paper consumption for internal and external purposes, including envelopes, promotional material, printed material, insurance

documentation, etc.

Care for the wider natural environment

Under the expert guidance of the Slovenia Forest Service, Group employees once again

participated in the

reforestation of the Karst region after the devastation

caused by the

catastrophic fires in 2022. Approximately 8,000 seedlings of diverse tree species were planted in

the area affected by the fire. In North Macedonia, the

Green League

app (Zelena liga) was

launched to promote a healthy lifestyle for employees and clients, while also raising awareness

about the importance of reducing CO

emissions into the environment.

134

11.2.3

Services and products promoting social and environmental impacts

Sustainability criteria are taken into account when designing insurance products, and each

product is properly assessed already in the development and approval phase in accordance with

the internal methodology of sustainability impact assessment. Presented below are the most

important services and activities that promote social and environmental benefits.

▪

Solar power plant insurance:

This insurance provides adequate insurance cover to all owners

and users of energy from renewable sources.

▪

Micromobility insurance:

Insurance for small electric means of transport, which is designed

to promote the use of zero-emission means of transport.

▪

Comprehensive car insurance and roadside assistance insurance:

These insurance products

include all the necessary covers for electric and hybrid vehicles (insurance of the entire

charging infrastructure).

▪

The DRAJV app:

Promotes safe, economical and responsible driving, allowing clients who

use it to qualify for a reduced car insurance premium.

▪

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.

▪

The range of co-financed agricultural insurance products:

Promotes the supply of locally

produced food. This helps to shorten supply chains and contributes to preserving

agricultural production and rural settlements, especially in more remote areas with more

difficult farming conditions (less favoured areas for agriculture). In order to preserve

Slovenian fruit production and business sustainability, the Company presented to the

government a proposal to upgrade the agricultural insurance co-financing system, where

the government would also be involved through co-financing in the event of damage.

▪

The

premium policy

for agricultural insurance products 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 to protect against summer drought, sprinkler systems to

protect against spring frost, anti-hail nets, greenhouses, tunnels).

Gradually launching

index insurance products

, such as crop insurance against drought with remote sensing

technology to detect a lack of moisture in the soil, helps to reduce the burden on the

environment in the claim settlement process. Modern damage assessment procedures in

the field using tablets and drones are also more environmentally friendly.

▪

Special benefits for young farmers:

Young farmers receive special benefits when concluding

insurance upon taking over a farm. In cooperation with the Slovenian Rural Youth

Association, the Company supports young farmers in innovative and preventive projects

such as Innovative Young Farmer, (Un)safe Driving with Tractors and participation in the

publication of the Entrepreneurial Farmer (Podjetni kmet) manual.

▪

Activities in insurance companies outside Slovenia:

In Serbia, an agreement was signed with

a solar panel provider, with the Triglav Group engaged as the insurance provider. In North

Macedonia, the Kasko Green promotion was launched, running until the end of September.

Owners of electric and hybrid vehicles received up to a 50% discount on their comprehensive

car insurance. Furthermore, the My Home (Moj dom) product was launched, offering a 10%

discount to policyholders using cost-effective devices, and a 50% discount to policyholders

with installed power generation devices such as solar panels (30% for legal entities).

The volume of premium written from insurance products promoting general social and

environmental benefits increased to EUR 24.8 million (index 119) in 2023.

GRI G4-FS7, G4-FS8, SDG 2, SDG 7, SDG 9, SASB: FN-IN-410b.1, FN-IN-410b.2.

135

The value of assets under management that comply with sustainability criteria increased to EUR

1.1 billion, as a result of the aforementioned redesign of twelve mutual funds and the

incorporation of a sustainability strategy in the discretionary mandate services segment.

Sustainable bonds represent 11.1% of the Group's debt investments.

Written premium from the Triglav Group insurance products that promote social and

environmental benefits, along with assets under management in funds and discretionary mandate

assets that incorporate sustainability aspects

Written premium and assets under management

Index

2023

2022

2021

2023/2022

2022/2021

Crop insurance

17,738,167

17,056,736

13,392,760

104

127

Electric vehicle insurance

4,699,300

2,427,251

1,920,092

194

126

Micromobility insurance

527,467

550,591

484,875

114

Solar power plant insurance

1,816,700

773,394

537,912

235

144

Total written premium

24,781,634

20,807,972

16,335,639

119

127

Assets under management in funds that

incorporate sustainability aspects*

1,139,026,941

49,246,838

41,833,991

2.303

118

* Comprise assets from mutual funds (

Triglav Aktivni, Triglav Evropa, Triglav Obvezniški, Triglav Okoljska perspektiva, Triglav Renta, Triglav Severna Amerika, Triglav Sklad

denarnega trga EUR, Triglav Svetovni razviti trgi, Triglav Tehnologije prihodnosti, Triglav Top Brands, Triglav Trgi v razvoju, Triglav Zdravje in dobro počutje

) and discretionary

mandate assets that incorporate sustainability aspects.

The disclosures required by Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021

supplementing Regulation (EU) 2020/852 are presented in the appendix Disclosures under the

EU Taxonomy Regulation.

11.3

Social aspects

11.3.1

Responsibility to clients

The Company aims to cultivate long-term relationships with its clients, built on principles of

fairness, trust and ongoing follow-up. Client needs are promptly addressed with an emphasis on

quality,

convenience

and

transparency.

Suggestions and comments

from

clients are

professionally and fairly addressed not only to enhance business models and processes but also

to develop new products, services and ecosystems.

The client experience is improved through the development of digital solutions and modern

communication channels. Client relationships are reinforced through direct contact with

insurance agents, ensuring clients are informed about insurance products and their personal

data and rights are protected.

Insurance products are developed in line with the procedures for their approval and testing

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 a regular basis, thereby maintaining client focus and product satisfaction.

When any deviations are identified, the respective product or its distribution is appropriately

adjusted.

The sale of insurance is centrally managed through various sales channels and appropriate

communication platforms, aiming to cover all target groups – from young people to pensioners

– by using a multi-channel approach.

GRI 3-3.

136

Informing clients

Clients are provided with easy access to all the necessary information about the Company's

products and services. Its insurance and general terms and conditions are fair and transparent,

with special attention given to informing clients when underwriting 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.

Marketing approaches and campaigns are consistently implemented in compliance with

statutory and other consumer protection regulations. No proceedings for violations related to

marketing communication were initiated against Zavarovalnica Triglav and its subsidiaries in

2023.

Availability of services

A wide array of digital solutions and multiple sales channels is utilised to offer clients easily

accessible services and streamline business transactions. See Section

13. Business network of the

Triglav Group

for more information on the expansive business network.

▪

Communication channels:

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 and

info@triglavzdravje.si

are available for information on health

insurance; the toll-free telephone number 080 1019 and

info@triglavskladi.si

of Triglav

Skladi are available for information on investment solutions. Call centres also operate in

Croatia, Serbia and North Macedonia. The

TRIA virtual assistant

was upgraded with artificial

intelligence (AI) to offer clients a more natural, flexible and interactive communication

experience.

▪

The DRAJV mobile app:

The app is used by approximately 66,000 drivers every month, who

have driven a total of over 1.4 billion kilometres since its launch. 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. In 2023, a single Triglav login for the

i.triglav digital office and the DRAJV app was implemented. See Section

10. Development

activities

for more information.

▪

The i.triglav mobile app:

Using the app, clients can sort out most things related to insurance

contracts 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 app, which is used by more

than 228,000 users, allows clients to check the balance of their savings at Triglav Skladi and

the balance of their life and pension insurance assets.

▪

The

Triglav Vreme mobile app:

Provides access to reliable weather information and

forecasts provided by the Slovenian Environment Agency.

▪

Online insurance underwriting:

Motorcycle insurance was added to the digital insurance

portfolio, and most of the existing online products were redesigned for an improved digital

experience.

▪

Mobile appraisal units at CAT events:

In the affected areas, mobile appraisal units are set up

for a quick and prompt damage assessment. In 2023, ten mobile appraisal units were set up

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.

137

after seven major and several small hailstorms in Slovenia, which carried out a total of over

12,000 appraisals of damaged vehicles (compared to 4,000 in 2022).

▪

Claims settlement:

Users can submit a claim through a number of digital reporting channels

(online reporting, mobile reporting, B2B, i.triglav, chatbot, etc.) with electronic signing of

claims documents and reporting of assistance cases without a phone call. See Section

10.2

Digital transformation

for more information on the new innovative solutions.

▪

An app 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.

▪

The Triglav Skladi mobile app

and

Moj račun (My Account) online app

for easy and

transparent management of investors' investments and access to up-to-date information

on financial markets and asset management.

▪

Remote consultation with a specialist physician under the Zdravstveni nasvet (Medical

Advice) insurance product:

Clients can consult with a specialist physician by telephone or

video call.

▪

A safe driving simulator at Triglav Lab:

A practical driving test on the simulator provides a

discount on the young driver's insurance policy, and participating in a safe driving workshop

also provides a reduced price.

Access to Zavarovalnica Triglav's insurance services for people with various disabilities

Improving the services provided to persons with disabilities and ensuring their social integration

▪

A total of 75% of our points of sale provide independent access to people with different types of disabilities. In 2023, during

the renovation of the premises to accommodate the medical centre's requirements, tactile floor signs were installed in the

lobby of the building at Dunajska cesta 22 in Ljubljana to assist the visually impaired. In addition, an inductive hearing loop

was installed at the reception desk there.

▪

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.

▪

Partnership with the Sports Federation for the Disabled of Slovenia and the Vozim Institute.

11.3.1.1

Client satisfaction

Client satisfaction is measured using the Net Promoter Score (NPS) methodology in all markets

where the Group operates, with the range of participating companies being expanded. In the

reporting year, the underwriting process was included in addition to assistance services and

claim payments.

In 2023, despite a decline, the NPS score for both the Group and the Company remained at high

levels.

The NPS for the Group

decreased by 4 points year-on-year to 73, while

the NPS for the

Company

fell by 7 points year-on-year to 69. The decline was observed across all points of

contact, particularly in the area of information and underwriting. Despite the general decrease,

however, we still achieved the highest level of satisfaction in assistance services. The decline in

NPS is attributed to the rise in premiums resulting from inflation and catastrophic weather

events, leading to a significant increase in the number of claims and their settlement time. The

results of the measurements and negative client experiences are communicated to the relevant

departments on a daily basis.

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, which is also communicated to partner healthcare service providers. The best rated

GRI G4-FS14.

GRI 2-25.

138

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.

Client feedback is also 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.

Individual

complaints and compliments

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 website, where they can find all

information related to the handling of complaints.

In 2023, the Company received 3,897 complaints, a 14% increase compared to the previous year.

Most complaints related to non-life insurance claims (91%). The most common (91%) were

substantive complains in which clients expressed their dissatisfaction with the handling of their

claims. Of all complaints received, two-thirds were unfounded, 10% were founded and 15% were

partly founded. Apart from that, 46 compliments were received, with particular praise for the

attitude of staff in handling claims and service delivery. 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 was 88.2% in 2023. Together with new clients

acquired this year, their total number increased by 10.3%.

The rate of complaints

in relation to

the number of claims at Zavarovalnica Triglav and Triglav, pokojninska družba was 1.16%

compared to 1.22% in the previous year.

11.3.1.2

Assessment of effectiveness and market research

Various market analyses are performed to monitor our visibility among the general and business

public, assess client satisfaction, evaluate user experience, and understand the purchasing

habits and intentions of both existing and potential clients.

In 2023, 45 in-house surveys were conducted, covering a wide range of business areas. These

surveys are aimed at enhancing the quality of our products, services and applications, tailor them

to clients' needs and expectations, strengthen our competitive advantage and deepen our

understanding of the market. Topics included analysing target audience and products, designing

and testing the bases for application development, exploring the potential of new product

concepts, evaluating existing products and understanding clients' buying patterns.

Regular surveys on the

Triglav brand's reputation

are also conducted among the general public.

In all countries where the Group operates, except Serbia, the brand ranks among the top five

brands in terms of reputation. With a brand excellence index of 81, Triglav scored one

percentage point lower than in 2022.

SASB: FN-IN-270.3.

SASB: FN-IN-270a.3.

139

Brand management and marketing communication

Rebranding

took place both at the Triglav brand level and the employer brand level. At the brand

level, a graphic guidelines and rules manual was developed, outlining the rules and principles of

the new brand archetype, a sovereign guardian. Additionally, an employer brand strategy was

formulated, defining the guidelines for cultivating a blue culture at Group level, establishing the

employer brand identity and defining the employer brand promise. To this end, a content and

graphic manual for unified HR advertising across the entire Group was adopted, with its

implementation scheduled to begin in early 2024.

Through the

Insure Our Future

sustainability project, all sponsors and partnerships from various

fields, including sport, culture, healthcare, prevention and business, were brought together on a

single communication platform. Our joint efforts were focused throughout the year on achieving

the 17 UN Sustainable Development Goals (SDGs). By disseminating the content of each SDG,

awareness of their significance was raised among online users, primarily through the Company's

channels (Facebook, Instagram,

zavarujmoprihodnost.si

website, etc.) and the digital channels

of selected ambassadors. An e-newsletter was sent to all partners twice a month to provide the

latest news about the Company and encourage their involvement. Furthermore, information

about the Company's activities was shared with employees via the intranet to underscore the

importance of sustainability.

As part of its long-standing partnership with the Ski Association of Slovenia, the Company held

the

Create a Cup for Planica

competition for children, for the first time actively engaging

teenagers and young people in a nationwide event at the FIS Ski Jumping World Cup Finals. In

the competition, young creators designed a real trophy for the Planica 7 winner – the best ski

jumper, with the trophy subsequently produced using a 3D printer.

11.3.1.3

Awards and acknowledgements received

Awards and acknowledgments of the Triglav Group in 2023

▪

WEBSI 2023:

2nd place for Triglav Skladi in the "Product and landing pages and a website

intended for individuals" category and 3rd place in the "Financial sector" category.

▪

TOP investor in education:

Zavarovalnica Triglav was awarded a certificate for its systematic

investment in employee education and training.

▪

European Commission Award

(under the European Road Safety Charter): Top prize in the

"Fitness to drive" category for the

Refresher ride with a driving instructor for the elderly

project.

▪

HRM project 2023:

The winner of the HRM project in the "Large Companies" category,

recognised at the HR&M conference for the exemplary practice showcasing how

volunteering at Triglav fosters connection, unity and resilience within the organisation.

▪

Marketing Excellence:

The winner in the "Sustainability excellence" category for the

Refresher ride with a driving instructor for the elderly

project.

▪

Effie:

Gold Award in the "Long-term effectiveness and efficiency" category for the DRAJV

mobile app.

▪

Diggit:

Grand Prize in the "Effective marketing, design and user experience" category for the

i.triglav mobile app.

▪

IADA:

Gold Award for the 2022 annual report of the Triglav Group and the parent company

for the integrated communications solution on the annual report's cover photo.

▪

Arc Awards:

Gold Award for the 2022 annual report of the Triglav Group and the parent

company for the integrated communications solution in the "PDF Version of Annual

Reports" and "Photography/Video" categories.

140

▪

Gold Quill

: The

International Association of Business Communicators (IABC) awards for

excellence in strategic communication for the

Refresher ride with a driving instructor for the

elderly

project in two categories ("Safety communication" and "Corporate social

responsibility").

▪

Excellence Award:

Triglav, Zdravstvena zavarovalnica received a special award for

excellence, having been chosen by clients as one of the best healthcare service providers.

▪

Reputable Employer 2022:

For the fifth year in a row, Zavarovalnica Triglav was awarded

the title of

Reputable Employer

in the insurance industry for its dedication to caring for its

employees and the flexibility it demonstrates as an employer in a challenging labour

market.

▪

NETKO Award

(by the Chamber of Commerce and Industry of Slovenia): 1st place for Triglav

Skladi for the best presentation of a company or start-up, for the best presentation of a

product or service and a "Top Project!" special award.

11.3.2

Responsibility to employees

Strategic employee management guidelines and the recruitment policy

▪

The Group attracts, retains and develops top talent on an ongoing basis, continually

improving the selection procedures. 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. Mobility within areas of work and among Group companies is

promoted. Onboarding mentoring for new hires and development mentoring for promising

employees are carried out, thereby strengthening 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 2023, the main competency – initiative was strengthened at Group level.

▪

The development of key and promising employees and leaders is an ongoing process.

▪

Employee satisfaction and commitment are a priority, which is monitored using an annual

ORVI survey.

▪

Modern, hybrid forms of work are being implemented that enable employees to work more

flexibly and efficiently, facilitate networking and cooperation, and improve their work-life

balance.

▪

In 2023, the Group completed a project to implement development modules in the Gecko

HRM human resource information system.

11.3.2.1

Recruitment and employee structure

The Triglav Group had

5,318 employees

as at 31 December 2023, up by 12 over the preceding

year. The number of employees increased due to new hires in the Serbian and Croatian insurers.

GRI 3-3.

GRI 2-7.

141

The number of Triglav Group employees as at 31 December

The majority, i.e. 87.6%, of all employees worked in the insurance activity, down by 0.7

percentage point compared to the year before, due to a decrease in the number of employees at

the health insurer. The share of employees in asset management activity increased by 0.1

percentage point, while in other activities it rose by 0.6 percentage point.

Employees by Triglav Group activity as at 31 December 2023

A total of 51.3% of all Group employees are employed in Slovenia, up by 0.1 percentage point

relative to the preceding year. The share of employees in Serbia increased the most (by 0.4

percentage point), whereas in North Macedonia it decreased the most (by 0.3 percentage point).

Employees by Triglav Group market as at 31 December 2023

5,264

5,306

5,318

2021

2022

2023

Insurance

87.6%

Asset

management

2.5%

Other

9.9%

Slovenia

51.3%

Serbia

15.5%

Bosnia and

Herzegovina

10.8%

Croatia

10.3%

Montenegro

7.0%

North Macedonia

5.1%

142

The proportion of employees with at least level VI education according to the Bologna Process

study programmes has been steadily increasing.

Proportion of employees at the Triglav Group with at least level VI education according to the

Bologna Process study programmes as at 31 December 2023

Employees at the Triglav Group and Zavarovalnica Triglav by type of employment (full-time, part-

time) as at 31 December 2023

Triglav Group

Zavarovalnica Triglav

2023

2022

2021

2023

2022

2021

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Type of

employment

Part-time

258

4.5

241

4.5

221

4.2

3.3

Full-time

5,060

95.1

5,065

95.5

5,043

95.8

2,170

96.7

2,169

96.7

2,172

96.7

Total

5,318

100.0

5,306

100.0

5,264

100.0

2,243

100.0

2,243

100.0

2,246

100.0

Type of

employment

agreement

Fixed-term

593

11.2

607

11.4

624

11.9

0.8

1.5

1.8

Permanent

4,725

88.8

4,699

88.6

4,640

88.1

2,226

99.2

2,210

98.5

2,205

98.2

Total

5,318

100.0

5,306

100.0

5,264

100.0

2,243

100.0

2,243

100.0

2,246

100.0

The turnover rate

at Group level rose to 12.0% (compared to 11.6% in 2022) and to 5.5% at

Zavarovalnica Triglav (compared to 5.3% in 2022). A total of 649 new employees were hired in

2023; most new hires were aged between 26 and 35 years. A total of 637 employees left; most

leavers were aged over 56 years (due to retirement) and 41–45 years.

The average age

of employees in the Group rose to 45.1 years (compared to 44.8 years in 2022);

at the parent company it was 46.9 years (compared to 46.7 years in 2022). The average age of

Zavarovalnica Triglav's Management Board members was 47.8 years.

In Slovenia, senior

management is hired from the local community, as is the majority of senior management in

markets outside Slovenia.

The proportion of women

among all employees increased both at the Company and in the

Group, where it reached 55.0%. The proportion of women among the Management Board

members of Zavarovalnica Triglav was 20.0%, and in the management and supervisory bodies of

GRI 2-7.

GRI 401-1.

GRI 405-1, SASB: FN-AC-330a.1.

GRI 202-2.

57.7%

58.5%

59.0%

2021

2022

2023

143

all Group companies it stood at 25.5%.

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 2023 (%)

Share in %

Index

Triglav Group

2023

2022

2021

2023/2022

2022/2021

Women employees to total employees ratio

55.0

54.7

53.5

101

102

Proportion of women at the first management level under the

Management Board

46.5

45.1

45.8

103

Proportion of women at first and second management levels under

the Management Board

42.6

41.2

42.1

103

Proportion of women in management and supervisory bodies

25.5

23.6

20.9

108

113

Proportion of the underrepresented gender in management and

supervisory bodies

18.7

17.1

17.2

109

100

Women in management to women employees ratio

5.0

4.9

5.3

103

Zavarovalnica Triglav

2023

2022

2021

2023/2022

2022/2021

Women employees to total employees ratio

51.4

51.1

50.4

100

102

Proportion of women on the Management Board of Zavarovalnica

Triglav

20.0

25.0

33.3

Proportion of women on the Supervisory Board of Zavarovalnica

Triglav

25.0

0.0

Proportion of women at the first management level under the

Management Board

32.0

25.9

123

100

Proportion of women at first and second management levels under

the Management Board

39.1

40.2

37.9

106

Women in management to women employees ratio

3.2

3.5

3.4

104

Employees at the Triglav Group and Zavarovalnica Triglav by age and gender as at 31 December

2023

Triglav Group

Zavarovalnica Triglav

2023

2022

2021

2023

2022

2021

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

131

2.5

127

2.4

125

2.4

1.3

1.1

0.9

From 26 to 30

360

6.8

361

6.8

371

7.0

4.3

3.9

4.2

From 31 to 35

515

9.7

555

10.5

569

10.8

179

8.0

191

8.5

194

8.6

From 36 to 40

719

13.5

741

14.0

771

14.6

268

11.9

268

11.9

264

11.8

From 41 to 45

876

16.5

904

17.0

885

16.8

333

14.8

367

16.4

393

17.5

From 46 to 50

964

18.1

940

17.7

882

16.8

443

19.8

438

19.5

422

18.8

From 51 to 55

844

15.9

828

15.6

821

15.6

441

19.7

446

19.9

455

20.3

56 and over

904

17.0

847

16.0

834

15.8

453

20.2

421

18.8

402

17.9

Total

5,318

100.0

5,306

100.0

5,264

100.0

2,243

100.0

2,243

100.0

2,246

100.0

Gender

Men

2,391

45.0

2,401

45.3

2,426

46.1

1,091

48.6

1,096

48.9

1,104

49.2

Women

2,927

55.0

2,905

54.7

2,838

53.9

1,152

51.4

1,147

51.1

1,142

50.8

Total

5,318

100.0

5,306

100.0

5,264

100.0

2,243

100.0

2,243

100.0

2,246

100.0

The share of employees

employed under the collective agreement

was slightly higher in both

the Group and the parent company. It was 88.6% in the Group (compared to 88.5% in 2022) and

89.7% at the parent company (compared to 89.6% in 2022). The remaining 11.4% were

GRI 405-1.

GRI 405-2.

GRI 405-1, SASB: FN-AC-330a.1.

GRI 405-1.

144

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 2023, in accordance with the law, the Company had 26 employees under

a work contract and 11 temporary or non-guaranteed hours employees.

11.3.2.2

Employee training and development

The Group's strategic guidelines are implemented also by pursuing a training policy, thereby

ensuring the employees' expertise, sustainable business, digitalisation and an outstanding user

experience.

In-house training is available to all generations and target groups of employees, with special

attention paid to leaders, sales staff, promising employees, in-house coaches and mentors.

Employees from all Group companies and employees at external points of sale are included in

in-house training. Training in insurance, sales, business communication, digitalisation and other

relevant business topics was provided to employees. Workshops on leading a healthy lifestyle

were organised as part of the Triglav.smo in-house programme in cooperation with various

experts.

The majority, i.e. 52%, of the Group's training sessions were delivered online (compared to 62%

the previous year). Some more extensive training programmes:

▪

Specialised in-house training.

▪

Summer School.

▪

New training topics in the context of

the leadership license

. New leaders were included in

the

Leadership School

programme.

The Effective Leadership and Communication

training

programme was organised for the leaders of the companies in the Adria region.

▪

An emotional intelligence development

training

programme

▪

The Triglav Guide

, a programme for new hires.

▪

The Triglav Ambassadors

programme to exchange knowledge, skills and experience of the

best insurance agents.

▪

Sales Academy.

▪

Compulsory training to maintain

a licence to conduct insurance agency business

▪

A new group of in-house coaches.

▪

A total of 21 expert meetings were held either at the parent company or within the Group.

The

total number of functional training hours at

Group level was down by 4%, while in the parent

company it remained at the same level as last year (index 100). Employees at Group level

participated in 32 training hours on average (index 96). Company employees participated in 51

training hours (the same as last year), most in the in the age group of 26–30 years. In terms of

gender, both men and women received the same amount of training.

The Group' training costs

amounted to EUR 2.5 million, up by 4%, due to the higher number of

training hours in traditional form and related costs.

GRI 2-30.

GRI 401-2.

GRI 2-7.

GRI 2-8.

GRI 3-3.

GRI 404-1.

145

Employees are also encouraged to continue their formal education;

work study

was funded for

148 Group employees and

scholarships

were provided to 48 pupils and students.

Obligatory

work placement

was provided to 61 pupils and students. A total of 14 young employees

completed

traineeship

under the guidance of mentors. During the three-day

Great Challenge

(

Hud izziv

), held in cooperation with the Career Centre of the Faculty of Economics, students

proposed solutions on how to use new technologies to design innovative insurance products.

Partnering with various societies under the motto

Together for a Safer Future

, the Company held

volunteering campaigns in early 2023. Teambuilding activities were enhanced by integrating

volunteering themes. As a result of these efforts, the Company was honoured with the HR&M

Project 2023 award for good practice and received the "TOP Investor in Education" certificate for

systematic investment in employee education and training.

Management by objectives and development of competences

The management-by-objectives system is implemented by all Group insurance companies and

some non-insurance companies. The share of employees included in this system increased to

55% in 2023 (compared to 49% the year before), while the share of employees in the parent

company rose by 3 percentage points to 75%. Employees set their objectives at an annual

development interview with their superior, and their achievement is monitored and rewarded

quarterly. 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

is integrated into annual development interviews in order to define

individual competency profiles and an individual's development activities.

The DNLA tool

is used

in some Group companies for the selection and development of new employees.

11.3.2.3

Occupational health and safety

At the Company, a comprehensive and strategic approach to occupational health and safety is

prioritised, with numerous activities aimed at managing and preventing risks. Great emphasis is

placed on workplace health promotion, as well as providing employee training in occupational

health and safety as well as fire safety. Various activities that further contribute to greater

satisfaction and better health of employees take place in the context of the Family-Friendly

Enterprise Certificate.

Occupational health and safety system

The well-functioning and comprehensive system in the parent company is gradually being

transferred to other Group companies, particularly by establishing common minimum

occupational health and safety standards and by strictly complying with local legislation. In

addition, the goal is to identify, mitigate and manage risks arising from duties and the work

environment.

Occupational safety and health

ensures the smooth provision of a healthy work environment for

the employees.

The aspects of hazards and negative effects that could impact the health of employees are

identified in

the Safety Statement and Risk Assessment

for all job categories, which includes

measures to prevent and reduce negative impacts. As part of a continuous process, in which

employees actively participate, assessments are revised and measures upgraded on an ongoing

GRI 404-3.

GRI 3-3, SDG 8.8.

GRI 403-1, 403-2, 403-3, 403-4, 403-5, 403-8.

146

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 on

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 Protecting Health

(

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

The Group's health promotion programme is developed in collaboration with authorised

occupational medicine specialists, based on the most common health problems detected among

employees through a sick leave analysis. Activities are therefore designed to contribute to the

mental and physical health of employees of all ages, including active breaks,

Healthy Mind,

Healthy Body

training workshops, the

Days of Health

(

Dnevi zdravja) f

our-day preventive health

programme for the fifth year running, and a wide range of activities in

sports and

mountaineering clubs.

Fire safety

With regard to 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. 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. Due to a change in legislation, new fire risk assessments

were performed in 2023 for all Company facilities. Fire inspectors carried out inspections at two

locations in Slovenia and found no major irregularities.

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 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 dangers 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 planned timeline and the scope defined for

individual job categories.

Injuries at work

The number of accidents in the Group remains low – 20 in 2023, and 6 at the parent company.

The number of lost work days in the Group was at the same level as last year, while at the

Company it was much lower due to fewer cases of prolonged absenteeism.

GRI 403-6.

GRI 403-4.

GRI 403-9.

147

Injuries at work at the Triglav Group and Zavarovalnica Triglav

2023

2022

2021

Index

Triglav Group

Number

Percentage

Number

Percentage

Number

Percentage

2023/2022

2022/2021

At work

75.0

70.0

76.9

107

140

On business trips

25.0

30.0

23.1

200

Total

100.0

100

154

Zavarovalnica Triglav

Number

Percentage

Number

Percentage

Number

Percentage

2023/2022

2022/2021

At work

33.3

25.0

57.1

200

On business trips

66.7

75.0

42.9

133

100

Total

100.0

150

Lost work days and lost time incident rate due to injuries at work at the Triglav Group and

Zavarovalnica Triglav

Index

2023

2022

2021

2023/2022

2022/2021

Triglav Group

Lost work days due to work-related injuries

1,281

1,279

543

100

236

Lost time incident rate – LTIR*

0.38

0.37

0.24

101

155

Zavarovalnica Triglav

Lost work days due to work-related injuries

238

578

321

180

Lost time incident rate – LTIR*

0.26

0.18

0.31

149

* 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 one dangerous

occurrence (compared to 2 in 2022) and no occupational diseases in 2023.

Absenteeism

The Group's absenteeism rate decreased by 0.65 percentage point to 4.39%. The share of

absenteeism for which sickness benefits are borne by the employer decreased by 0.11

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 0.55 percentage point (medical leave

longer than 30 days, sick nursing, accompanying a sick person). The absenteeism rate at the

Company was also lower and stood at 5.02% (compared to 5.86% in 2022). As a result, the share

of work days lost borne by the employer rose by 0.19 percentage point, whereas the share of

work days lost borne by the Health Insurance Institute of Slovenia decreased by 1.03 percentage

points.

11.3.2.4

Care for employee satisfaction

Organisational vitality (climate) and organisational culture

The 2023 results of

the organisational vitality survey (ORVI)

, which measures employee

satisfaction, were slightly lower than last year. The ORVI index was 3.94

at Group level

and 3.95

at the parent company

. A total of 89% of employees from 17 Group companies participated in

the survey (compared to 86% of employees in 2022). The aggregate ORVI index is composed of

four indicators (indices), which are further broken down into ten categories.

GRI 403-10.

GRI 403-9.

GRI 2-29.

148

The indicators for

operational leadership

and

engagement

once again recorded the highest

values.

Employees trust their supervisors and perform their work with a high degree of personal

commitment. Their satisfaction with regular employment, direct supervisors, working time and

co-workers were also rated high. Employees stated that they feel

safe and accepted

among their

colleagues and they feel comfortable seeking help and cooperation from their team members.

They are satisfied with the benefits of working for the Group, especially the activities that

support both professional and personal development, as well as promote active leisure and a

healthy work-life balance.

The challenge in 2023 was the fall in specific satisfaction scores and the higher proportion of

non-engagement, which was not unexpected and is assumed to be due to general inflationary

pressures and the increased volume of work resulting from CAT claims and the consequent

increased workload. In response to the changes, the Company will intensify its efforts to bolster

and maintain satisfaction levels, thus cultivating the desired organisational culture.

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, with a focus on health. Some of

these activities also take place in other Group companies. The programme involves taking care

of employees' children by organising holiday camps and traditionally giving gifts to children at

the end of the year. All Triglav Group employees are included in the Greeting the Seasons events.

Employees at Zavarovalnica Triglav have access to individual psychological counselling provided

by two in-house experts as part of

the Psychological Pulse

(

Psihološki utrip

) group. They

conducted 104 interviews in 2023.

The Family-Friendly Enterprise Certificate

facilitates a better work-life balance of the parent

company's employees. The constructive organisational culture is strengthened through

providing numerous benefits (21 are currently being offered) and implementing best practices.

In addition, best practices from the certificate are progressively implemented in other Group

subsidiaries.

Employee volunteering is consistently promoted as it fosters stronger ties between employees

and society. Throughout 2023, several volunteering campaigns were conducted, assistance was

provided during the catastrophic summer floods in Slovenia, basic CPR training was held, and

participation in blood donation drives was facilitated. Furthermore, through the Triglav.smo

programme, the Company is gradually taking part in the

Insure Our Future project

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 82% of the parent company are

included.

GRI 401-2, 201-3.

149

The Group companies 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, and their proportion is on the rise. At the 2023 year-end, 36% of Group

employees and 65% 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 2023 and in 2022

Triglav Group

Zavarovalnica Triglav

2023

2022

2023/2022

2023

2022

2023/2022

Number of employees allowed to work from home

1,930

1,757

110

1,447

1,412

102

Proportion of employees allowed to work from home

36.3

33.1

110

64.5

63.0

102

Number of hours of working from home

651,768

634,846

103

444,861

437,583

102

Proportion of hours of working from home

6.1

5.9

103

9.8

9.7

101

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 2023

Triglav Group

Women

Men

Total

Maternity leave, child care leave

171

179

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

51%

150%

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

90%

96%

* The calculation includes employees who took parental leave in the previous year and returned to work in 2023, as well as employees who

took parental leave in 2023.

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

GRI 401-3.

GRI 3-3, 402-1.

150

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

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. 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 reporting person is protected from any

retaliatory action and is given an opportunity to informally resolve the issue.

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.

Discrimination and unwanted conduct at Zavarovalnica Triglav are additionally governed by the

Rules on the protection of workers' dignity at work, under which a confidant is appointed with

the approval of the Works Council. The rules regulate the manner of recognising, preventing and

eliminating the consequences of discrimination, sexual and other harassment and workplace

mobbing.

In 2023, three employee reports of inadmissible conduct were received at Group level, one of

which in the Company. In addition to these, the confidant dealt with two other reports received

at the end of 2022; No violations were identified after investigating them.

The Company also incorporated its

commitment to respect human rights in business operations

into its business processes by pledging to avoid and prevent any potential negative impacts on

ensuring human rights throughout the entire business process. 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.

11.3.3

Responsibility to the community

The aim is to play an active role in economic development through our business activities and in

efforts to improve 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, which amounted to EUR 1,682.9 million in 2023.

GRI 2-23, 2-24, 2-25, 3-3.

GRI 406-1.

GRI 3-3.

151

Economic value distributed of the Triglav Group

2023

2022

2023/2022

Economic value generated

1,642.4

1,318.9

125

Economic value distributed

1,682.9

1,409.9

119

Gross written premium and reinsurance result

1,151.9

1,013.9

114

Finance expenses from financial and insurance contracts

207.0

46.2

448

Other expenses

65.2

77.0

Dividend payments

56.8

84.0

Tax expense

-4.8

3.1

Investments into the community (prevention, donations, sponsorships)

8.9

10.2

Employee payments, allowances and benefits

197.9

175.5

113

Economic value retained

-40.5

-91.0

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.

11.3.3.1

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 bulk of funds is allocated to

improving traffic, health and fire safety.

Funds allocated to preventive activities of the Triglav Group and Zavarovalnica Triglav in EUR

million

GRI 201-1, 203-1.

3.5

4.1

3.3

2.9

3.1

2.8

2021

2022

2023

Triglav Group

Zavarovalnica Triglav

152

The share of the Triglav Group's and Zavarovalnica Triglav's funds for preventive activities by

purpose in 2023

Prevention projects

Prevention projects and activities aimed at preventing accidents and mitigating the effects of

damage were focused on the areas that experienced the greatest impact during the year.

High profile and comprehensive prevention projects of the Triglav Group in Slovenia in 2023 by

area

Health prevention

Impact

Assistance in the event of a sudden cardiac arrest

▪

Co-financing or purchase of 26 defibrillators in local communities – 210

since 2014.

▪

Co-financing of training in first aid.

Training in healthcare and rapid response

▪

Co-financing of the 26th national competition of secondary schools in

nursing.

▪

Organising the

Safe winter walking in the mountains for families

course in

cooperation with the Avalanche Warning Institute.

Purchase of medical and therapeutic equipment

▪

Purchase and co-financing of a device for non-invasive respiratory

support of newborns with respiratory distress for the Hospital for

Gynaecology and Obstetrics in Kranj.

▪

Purchase and co-financing of devices to help treat jaundice in newborns

in Postojna and Ptuj maternity hospitals.

▪

Purchase of a swing for wheelchair users.

Prevention and early detection of disease and

mental health

▪

Holding 11 events in the field of physical and mental health protection.

▪

Continued implementation of the

Najdi.si

project, which normalises

mental health topics among young people.

▪

Co-financing of the

Roza

(Pink) programme for psychosocial support for

patients with breast or reproductive cancer and their relatives.

▪

Support for the

Sranje

(Shit) campaign on gastrointestinal cancer

awareness of the Slovenian Oncology Society for Men – OnkoMan.

Prevention of accidents at work, partner:

Radovljica Fire Fighting Association

▪

Financing a chainsaw safety course for firefighters.

GRI 3-3, 201-1, 203-1.

SDG 3.6.

1.0%

2.0%

4.0%

14.5%

13.0%

63.5%

0.9%

1.8%

2.0%

3.5%

13.9%

16.7%

61.2%

Environment protection

Intruder detection

Education

Agriculture

Fire safety

Health

Traffic safety

Triglav Group

Zavarovalnica Triglav

153

Traffic safety

Impact

Refresher ride with a driving instructor for the

elderly, partners: AMZS,

Avtomobilnost

TV show

▪

A refresher ride with a driving instructor for the elderly was taken by 287

drivers over 60 years of age.

▪

In the five years of implementing this campaign, more than 1,000

experienced drivers have taken a refresher course with a driving

instructor.

▪

At the

Anatomy of Elderly Driving

event, the topic was explored with

experts. Journalists were given an opportunity to take a special ride using

an aging simulator, fostering empathy when reporting on elderly driving.

Vozimse.si – a road traffic prevention portal,

partners: AMZS, Atmosferci

▪

In total, 97,241 drivers passed the road rules renewal test and thus

improved their knowledge of road traffic rules and etiquette.

▪

In cooperation with the Atmosferci group, video content was used to raise

awareness about safe driving practices and handling a tractor.

Safe micromobility, partners: Zavod Vozim,

Institute of Civilisation and Culture, Radio Center

▪

Launch of the

Don't lose your head, but use your head

(Ne bluzi, z glavo

kruzi) initiative for safer micromobility of young people, with an

emphasis on the use of e-scooters.

▪

A total of 15 workshops at schools and 15 workshops at open events for

the safe use of an e-scooter using a simulator.

▪

Two major events

Crossroads of micromobility

(Kranj, Celje) were held to

examine the behaviour in micromobility among all generations.

Together for Road Safety project, partner: COPS

system

▪

At blackspots throughout Slovenia, 16 COPS@zebra and COPS@road

systems were installed (over 80 systems in Slovenia).

Together for Road Safety project, partners

Sipronika and Zavod Vozim (I'm Driving Institute)

▪

A total of 106 speed display signs in local communities, at high-risk road

sections and in the vicinity of schools and kindergartens were set up

(within eight years), 12 of which in 2023.

▪

Students from 12 schools with displays were researching speeding and

submitted proposals to the mayors of their municipalities to reduce

speed. The implementation of proposals will be monitored on an annual

basis.

Interactive workshops for secondary school

students "I still drive but I no longer walk",

partners: Zavod Vozim (I'm Driving Institute) and

Sipronika

▪

At 180 workshops in person or online, 8,541 young people listened to

personal stories of traffic accident victims and became acquainted with

the DRAJV safe driving app.

▪

211 young people researched the influence of speed on impact load and

braking distance at 12 specialised workshops and technical days.

▪

283 young people attended the Alcohol=Change of Life workshop.

The safety of preschool children and first graders

in road traffic and other dangerous situations,

partner: the Slovenian Traffic Safety Agency

▪

22,000 first graders were equipped with yellow neckerchiefs.

▪

The road safety mascot Kuža Pazi (Watch Out Doggy) visited 48

elementary schools.

Training events and topics for motorcyclists,

partners: AMZS and Q VEJTR WAJDUŠNA

Motorcycle Club

▪

2,200 motorcyclists attended accident prevention workshops over the

period of ten years. In 2023, two days of free workshops for motorcyclists

were held to refresh knowledge of first aid in the event of an accident.

▪

Implementation of the first

Refresher ride for motorcyclists

workshop.

▪

1,800 motorcyclist regularly use the DRAJV safe driving app. They drove

more than 3.5 million safer kilometres.

Ongoing development of the DRAJV safe driving

app

▪

1.4 billion kilometres travelled with the DRAJV app since its launch.

▪

The app was upgraded to include traffic information. Overview of the

monthly statistics with the most common errors and a link to the content

of the Vozim.se portal, which helps to eliminate errors by giving advice.

Promotion of forming an emergency lane on

motorways, partner: Zavod Reševalni pas

(Emergency Lane Institute)

▪

Raising awareness of drivers using footage of ambulances on emergency

calls and their problems on common communication channels.

Emergency response driving workshops for

emergency response drivers, partner: AMZS.

▪

Safe driving training for emergency response drivers was attended by

more than 30 drivers.

Traffic regulation of hunting areas, partners:

Markovci Hunting Club, Križevci Hunting Club

▪

Funding of traffic signs.

▪

Funding of wildlife-friendly roadside bollards to prevent accidents.

Young drivers

▪

A subpage for young drivers "Mission: pass your driver's test and be a safe

driver" was developed on the Vozim.se portal.

▪

The DRAJV safe driving simulator offers young drivers the opportunity to

assess for free their safe driving skills.

Being Safe on a Bike, partners: Butan plin,

Slovenian Traffic Safety Agency, National

Education Institute of Slovenia

▪

250 schools participated in cycling literacy over 10 years.

154

Fire prevention

Impact

Purchase of fire protection equipment, partners

fire services, associations and brigades

▪

Co-financing of the purchase of protective equipment, fire-fighting

equipment and fire engines as well as investments in fire stations for 103

volunteer fire brigades and associations.

Financing of training and competitive activities of

firefighters, partners: Fire Fighting Association of

Slovenia and Ljubljana Fire Brigade

▪

Co-financing of national firefighting competitions and several other

competitions.

▪

The video entitled

A child dialling 112

was recorded with Saša Kapitanovič

and the Ljubljana Fire Brigade.

Fire safety awareness

▪

The event entitled

Prepared for the (un)predictable: If your home catches

fire

held at Triglav Lab.

Protection of the natural environment

Impact

Sustainable visiting of Triglav National Park,

partner: the Triglav National Park Public Institute

▪

Promoting sustainable practices in the area of the Triglav National Park

using the DRAJV app.

Study and conservation of dolphins, partner:

Morigenos – Slovenian Marine Mammal Society

▪

The development of a research and education centre about dolphins for

the public, alongside activities aimed at raising awareness about dolphin

life.

Keeping mountain trails well-maintained and

safe, partner: the Alpine Association of Slovenia

▪

Support for the arrangement of the Hansa route, the winner of the Best

Mountain Trail competition.

▪

Support for the restoration of the challenging mountain trail from

Kamniška koča mountain hut on Kamniško sedlo mountain saddle to the

Brana and Planjava mountains.

Reforestation, partner: the Slovenian Forest

Service

▪

Participation of employees in the Karst reforestation campaign after the

fire and co-financing of the reforestation campaign.

Sustainable visit to the mountains, partners: the

Alpine Association of Slovenia and AMZS

▪

Co-financing of mountain playgrounds at Gospodična na Gorjancih and

at the hut on Naravske ledine.

Raising ecological awareness, partner: Ecologists

Without Borders

▪

Support for projects aimed at raising environmental awareness.

Awareness raising in safety during extreme

weather events

▪

The event entitled

Prepared for the (un)predictable: Extreme weather

events

held at Triglav Lab.

In the context of the traditional New Year's prevention campaign

For a Better Tomorrow

(Za

boljši jutri), 25 prevention projects were carried out in local communities across Slovenia. Funds

were allocated to firefighters, healthcare institutions, a care home, an education, rehabilitation

and training centre and municipalities. Over 250 prevention projects were supported in ten

years.

High profile and comprehensive prevention projects of the Triglav Group in the markets outside

Slovenia in 2023 by area

Health prevention

Impact

Health of urological patients, partner: Adriatic

Urological Forum, North Macedonia

Support for the 7th Adriatic Urology Forum.

Strengthening the health of paralympic athletes,

partner: Paralympic Committee of Macedonia,

North Macedonia

Support and strengthening of the health of para-athletes, purchase of

sports equipment.

Protection of the natural environment

Impact

Energy efficiency and sustainability, partner:

National Biomass Association SERBIO, Serbia

Co-financing of the 6th SEE Energy regional energy conference.

Ecological and energy conference, partner: Elixir

Group, Serbia

Co-financing of the 2nd Look Up 2 regional ecological and energy conference.

Fire safety

Impact

Protective and firefighting equipment, partners:

various firefighting organisations and companies,

Bosnia and Herzegovina

Co-financing of fire protection and firefighting equipment.

Fire protection in tunnels, partner: Lipa drvo,

Bosnia and Herzegovina

Co-financing of fire protection measures in road tunnels.

155

11.3.3.2

Sponsorships and donations

The Triglav Group engages in sponsorships and donations in accordance with standardised

guidelines, ensuring alignment with the Group's values, guidelines and brand. In 2023, the

volume of sponsorships and donations slightly decreased compared to the previous year. The

focus was on expanding sponsorship partnerships, particularly in sports, supporting the

development of young athletes and promoting the benefits of a healthy lifestyle. The Triglav

Group is a renowned partner of national sports associations, international sports events and

numerous sports clubs in its markets.

In 2023, the bulk of donations went to humanitarian projects, with a significant portion

allocated to flood relief efforts, and healthcare.

Funds for sponsorships of the Triglav Group and Zavarovalnica Triglav in EUR million

Funds for donations of the Triglav Group and Zavarovalnica Triglav in EUR thousand

GRI 201-1.

4.4

5.1

4.7

2.5

2.9

3.2

2021

2022

2023

Triglav Group

Zavarovalnica Triglav

886.3

1,073.0

853.9

307.3

669.4

702.2

2021

2022

2023

Triglav Group

Zavarovalnica Triglav

156

Sponsorships of the Triglav Group and Zavarovalnica Triglav in 2023 by content

Donations of the Triglav Group and Zavarovalnica Triglav in 2023 by content

Triglav Lab's activities

The Triglav Lab's technology development and demonstration centre serves as a venue for a

diverse array of events and workshops for education, prevention, business and awareness-

raising purposes. In 2023, a total of 113 events were held on-site, some of which were streamed

online. These events included in-house workshops, workshops for sharing best practices,

training sessions, meetings and recordings. In addition, there were 13 press conferences covering

various Zavarovalnica Triglav projects, sports and tourism events, and health-related topics, with

an emphasis on promoting good psycho-physical fitness.

A total of 600 young people attended 13 events aimed at enhancing financial and insurance

literacy and raising awareness about preventive actions. These events included the traditional

Finance School for Young People in collaboration with

Moje Finance

magazine, LIT Hackathon

and others. Furthermore, our efforts to promote psycho-physical fitness among young people

were expanded to include the increasingly popular gaming community.

0.0%

0.2%

1.7%

3.0%

14.9%

80.2%

0.3%

1.6%

2.5%

11.5%

83.6%

Environment projects

Health

Sustainability projects

Education

Culture

Sports

Triglav Group

Zavarovalnica Triglav

0.0%

5.4%

10.9%

29.9%

53.8%

0.6%

2.3%

7.0%

8.2%

23.9%

57.9%

Environment projects

Sports

Education

Sustainability projects

Health

Humanitarian projects

Triglav Group

Zavarovalnica Triglav

157

Everything Will Be Alright Institute

The main projects of the Company's Everything Will Be Alright Institute

(Zavod Vse bo v redu),

which is active in the field of preventive actions and corporate socially responsibility activities

aimed at providing support and help to socially disadvantaged, included:

▪

Helping those affected by floods

Fundraising initiatives were launched to aid those impacted by floods and storms, with the

fundraising efforts remaining open until their conclusion in January 2024. In addition, in-house

pre-New Year's Eve gatherings were cancelled, and a dedicated charity fundraiser was held

during the Managers' Concert for the same cause.

▪

The Young Hopes project – support to young talents

The 11th Young Hopes open call was launched in 2023, receiving 69 applications, up by 25%

compared to the previous year. A panel of judges selected 14 young and promising talents in

sports, para-sports, arts and sciences, with one individual chosen by the public through online

voting. An alumni gathering was held on the topic of physical activity as a form of meditation.

Information on corporate social responsibility partnerships:

Zavarovalnica Triglav, d.d., Ljubljana

Miklošičeva cesta 19, 1000 Ljubljana

Email:

sponzorstva@triglav.si

11.3.4

Responsibility to suppliers

Procurement practices

The Company's procurement procedures follow a well-defined selection process with built-in

internal controls. Procurement procedure management is supported by

a standardised software

solution

, which increases the transparency and reduces the operational risks of non-compliance

with good business practices. The procurement procedures above a certain amount are

performed by the Strategic Sourcing Department, which is responsible for coordination and

communication between the relevant departments in need of procurement and suppliers.

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. In 2023, the procurement criteria were

revised to incorporate a quantitative assessment of suppliers' ESG maturity through scoring.

New suppliers undergo assessment in the selection process, while existing suppliers are

reviewed annually. The updated criteria were applied to evaluate 865 suppliers and potential

suppliers participating in the selection process.

Furthermore, Zavarovalnica Triglav's general terms and conditions for suppliers were revised and

upgraded. These terms and conditions are now integrated into new procurement agreements,

thereby further binding our business partners to a high level of compliance with ESG standards.

The revised general terms and conditions, along with the upgraded assessment method for

partners based on ESG criteria, will be extended to other Group companies.

GRI 2-6, 3-3, 308-1, 414-1.

158

Locally-oriented procurement

The majority of the Company's suppliers are from the local, Slovenian market, with the share of

suppliers based outside Slovenia being 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

only when it is economically feasible or there is no appropriate 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. The parent company's Strategic Sourcing

Department centrally manages procurement procedures with a value of more than EUR 25,000

for all Slovenian companies in the Group.

Remuneration of insurance agency companies and sales staff

Our sales network is extensive and continually expanding. In 2023, it included

over 1,860

outsourcers

See Section

13. 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. A bonus is awarded for 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.

The productivity of our own sales network in companies outside Slovenia is also monitored. 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 some countries where the

Group operates, additional incentives were used to promote sale to retail clients.

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 increases

client satisfaction.

GRI 3-3, 204-1.

GRI 2-6.

159

11.4

Governance aspects

Fair business practices

Through the

Triglav Group Code

, which was amended in 2023 to include a commitment to

sustainable development, thirteen main ethical principles guiding the Group's operations are

implemented

(more

information

available

https://www.triglav.eu/sl/o-

nas/compliance/documents-and-commitments

). Employees in all Group companies are made

aware of and educated about the Code to ensure compliance with the adopted principles at all

levels.

In 2023, the Group dealt with 11 reports of alleged Code violations and 6 cases of suspected

internal fraud. In all cases examined, no violations or internal fraud were found. No monetary

losses directly related to the marketing and provision of information on insurance products were

identified.

Two of the covered employees from the Group were involved in investment-related

investigations, consumer complaints, private civil disputes or other regulatory proceedings.

final court decision on the legality of the entry of the Company's Supervisory Board member –

employee representative in the register of companies is still pending. A total of EUR 33,022 in

monetary losses directly related to legal proceedings involving fraud, insider trading, antitrust,

anticompetitive behaviour, market manipulation, abuse or violations of other laws or

regulations related to the financial industry were recorded. As a result, business processes were

already updated and modified accordingly.

Insurance fraud management

An effective insurance fraud management system is in place, based on ethical conduct, rapid risk

identification and fraud prevention. Advanced technological systems are used to detect

suspected fraud, which are regularly updated to stay ahead of new forms of fraud. The

effectiveness of internal control systems is also monitored and improved.

Employees are the first line of defence against fraud, which is why they undergo regular training

to educate about identifying suspected insurance fraud. Cooperation with relevant government

bodies and other insurance companies in the fight against fraud is ensured as necessary.

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 handling anonymous reports

as well as for ensuring the protection of the reporting person's identity and protection against

retaliatory actions.

Bona fide reporting persons

whistleblowers

are also protected under the

Rules.

At least one communication channel for reporting violations (an online form, a hotline for

reporting fraud or the email address

prevare@triglav.si

) is established 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

https://prevare.triglav.eu/whistleblower/#/zt

website.

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.

GRI 2-27, SASB: FN-AC-510a.1, FN-AC-510a.2.

160

Insurance fraud was confirmed in 1,119 cases out of 1,771 reported cases of suspected fraud in

2023. Of these, 28 reports of suspected fraud were received from external and internal reporting

persons (whistleblowers), which were confirmed in 13 cases. The number of confirmed cases of

suspected fraud was 7% higher relative to the previous year.

Anti-corruption behaviour

The anti-corruption policy sets a minimum standard of conduct in proceedings with an identified

corruption risk for the Group companies. When entering into an agreement or contract,

mandatory contractual clauses are included, such as an anti-corruption, a conflict of interest,

restrictive covenants, fraud prevention, reputation, the protection of human rights, personal

data, inside information and business secrets.

In 2023, the Company's employees attended training sessions on corruption prevention, respect

for human rights, consumer protection and preventing money laundering and terrorist financing

for an average of 1.5 teaching hours. No cases of corrupt practices were confirmed in the Group

in 2023.

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

The Company adopted a personal data protection policy and more detailed rules for the lawful

processing of data in specific business segments. These rules are also transferred to other Group

companies through minimum standards for personal data protection. All Group companies have

designated personal data protection officers or coordinators.

At Group level, 11 cases of potential violations of privacy or personal data protection were dealt

with, with five being identified as substantiated. The internal control system was subsequently

upgraded to prevent similar violations in the future. No material sanctions due to non-

compliance were imposed on the Group.

On average, the Company's employees received half a teaching hour of training on personal data

protection.

Protection of competition

The Group is committed to respecting consumer rights and good business practices in its

operations, product development and marketing. When choosing suppliers, it aims for

transparency and respects the protected interests of its competitors, while avoiding the risk of

violating regulations and the 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. One proceeding for alleged non-

compliance with competition protection rules has been initiated against a Group subsidiary

company, and it is still pending.

GRI 3-3, 205-1, 205-2, 205-3.

GRI 415-1.

GRI 3-3.

GRI 418-1.

GRI 3-3, 206-1.

161

Commitments to external initiatives and membership in associations

Zavarovalnica Triglav is a member of the United Nations Environment Programme Finance

Initiative (UNEP FI), as well as a signatory to the United Nations Principles for Sustainable

Insurance (UN PSI) and 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 also 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, joined

Transparency International Slovenia and became a signatory to the Commitment to Respect

Human Rights in Business.

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 2023, processes were aligned with the new Personal Data Protection Act, and efforts

continued to harmonise these practices within the Group. Amendments to the Insurance Act,

the Labour and Social Security Registers Act and other labour law regulations were adhered to.

Compliance with restrictive measures or sanctions resulting from the aggression against

Ukraine and the situation in Gaza (e.g. in-depth client screening) was consistently upheld. All

Group subsidiaries were double-checked in this regard.

Additional guidance from the European Insurance and Occupational Pensions Authority (EIOPA)

on outsourcing to cloud service providers was implemented, and additional frameworks were

established to enhance the management of risks related to cloud services.

Preparations for the EU Digital Operational Resilience Act (DORA), effective from 2023 and

applicable from January 2025, are underway. Some DORA requirements were already partially

implemented in the revised outsourcing policy, which the Group subsidiaries are required to

incorporate into their operations. In accordance with EIOPA guidelines and to ensure uniform

treatment of the Company's partners, general terms and conditions for Zavarovalnica Triglav's

suppliers were drafted to comply with the specified outsourcing requirements.

Legislative developments in sustainability, including the process of adopting the proposed

corporate sustainability due diligence directive (CSDDD), are closely monitored. Emphasis is

placed on fulfilling the requirements of the Sustainable Finance Disclosure Regulation (SFDR),

the EU Taxonomy and the Corporate Sustainability Reporting Directive (CSRD). The majority of

Group companies adopted a sustainable development policy and a methodology for calculating

their carbon footprints.

GRI 2-28.

162

In addition, the IFRS 17 and IFRS 9 accounting standards continued to be implemented.

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 on PRIIPs and the Slovenian Insurance Supervision Agency's

notices were taken into account in drafting key information documents for products.

Group subsidiaries not only adapt to changes but are also actively involved in regulatory

procedures and amendments to local legislation. In the countries where EU legislation does not

apply, the minimum standards of the parent company are followed.

Government grants and other forms of government assistance

The Triglav Group received EUR 3.5 million (index 102) in grants and other forms of government

assistance in 2023, of which Zavarovalnica Triglav received EUR 2.8 million (index 96). The largest

share of government grants in the Group, 83.8%, was accounted for by reimbursements of labour

costs by the state. Government incentives for the employment of specific categories of workers

accounted for 6.6%, other forms of government assistance and grants for 5.5% and funds

obtained in public tenders for the acquisition of assets for 4.1%. See Section

4.3 of the Accounting

Report

for more information on government grants.

GRI 201-4.

163

12.

Triglav Group as at 31 December 2023

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

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:

info@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:

Dunajska cesta 22, 1000 Ljubljana, Slovenia

Phone:

++ 386 (5) 662 20 00, 080 26 64

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 48,322,167/EUR 48,322,167

Triglav, pokojninska družba d.d.

Address:

Dunajska cesta 22, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 47 00 840, 080 555 555

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

164

Triglav Osiguranje d.d., Zagreb

Address:

Antuna Heinza 4, 10000 Zagreb, Croatia

Phone:

0800 20 20 80

Fax:

++ 385 (1) 563 27 99

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%

Nominal value of equity stake held by Zavarovalnica

Triglav/the Triglav Group:

- /EUR 48,228,552

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:

- /100.00%

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 19,661,348

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 Zavarovalnica Triglav/the Triglav

Group:

- /98.87%

Nominal value of equity stake held by Zavarovalnica

Triglav/the Triglav Group:

- /EUR 10,620,215

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

165

Lovćen životna osiguranja a.d., Podgorica

Address:

Ulica Marka Miljanova 29/III, 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 a.d., Banja Luka

Address:

Ulica Prvog krajiškog korpusa broj 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:

- /97.78%

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 4,671,173

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:

- /82.01%

Share of voting rights of Zavarovalnica Triglav/the Triglav

Group:

- /82.01%

Nominal value of equity stake held by Zavarovalnica

Triglav/the Triglav Group:

- /EUR 2,467,209

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:

- /97.43%

Share of voting rights of Zavarovalnica Triglav/the Triglav

Group:

- /97.43%

Nominal value of equity stake held by Zavarovalnica

Triglav/the Triglav Group:

- /EUR 6,822,617

166

Asset management

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:

Tomšičeva ulica 1, 1000 Ljubljana, Slovenia

Phone:

++ 386 51 671 816

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

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 6,356,000/EUR 6,356,000

167

Triglav fondovi d.o.o., Sarajevo

Address:

Ulica Mehmed paše Sokolovića br. 15, 71000 Sarajevo,

Bosna in Hercegovina

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

Other

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, 080 15 10

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 aktivnosti 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:

-/100.00%

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 30,119

168

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

Fax:

++ 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:

-/97.87%

Nominal value of equity stake held by Zavarovalnica

Triglav/the Triglav Group:

-/EUR 149,983

Triglav Savjetovanje, društvo za zastupanje u osiguranju d.o.o., Zagreb in liquidation

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 973,572

Triglav

Avtoservis d.o.o.

Address:

Verovškova 60b, 1000 Ljubljana, Slovenia

Phone:

++ 386 (1) 580 68 72

Email:

info@triglav-avtoservis.si

Website:

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

Triglav zdravje asistenca, družba za zdravstveno dejavnost,

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%

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 7,500

169

Diagnostični center Bled d.o.o.

Address:

Pod skalo 4, 4260 Bled, Slovenia

Phone:

++386 (4) 579 80 00

Email:

info@dc-bled.si

Website:

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

Fax:

++386 (1) 47 47 159

Email:

vsebovredu@triglav.si

Website:

www.vsebovredu.triglav.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%

Initial contribution of Zavarovalnica Triglav/the Triglav

Group:

EUR 100,000/EUR 100,000

170

13.

Business network of the Triglav Group

The Triglav Group's business network includes over 1,860 insurance agencies, brokers and

banks in the Adria region. Almost 80% of its contractors operate in markets outside Slovenia.

Modern technologies and software solutions are implemented in sales, after-sales and

assistance services, while automating processes.

The Triglav Group's business network is well developed and accessible to clients. With business

operations being increasingly digitalised, the traditional method of selling insurance and

financial services is now complemented with a multi-channel approach and hybrid forms of

business. In 2023, the Group entered into more strategic partnerships, while increasing the

number of contract sales partners and the scope of online and assistance services. Greater

emphasis is being placed on underwriting through digital sales channels by establishing new

communication channels.

The Group's insurance sales network is composed of insurance agents, sales clerks and own

points of sale (see

Section 13.1

for more details). In 2023, the external sales network in Slovenia

comprised 380 outsourcers. In the non-life insurance segment, the Group cooperates with

roadworthiness test providers, leasing companies, car dealers, insurance agencies, travel

agencies and hardware shops with great success. In the life insurance segment, the Group

collaborates with insurance agency companies, insurance brokerage companies and banks

providing insurance agency services. Before entering into an agreement with a partner, a due

diligence and risk assessment with respect to personal data processing is carried out. In October

2023, a branch was established in Greece.

The Group has an extensive own and external sales network in its subsidiaries in the Adria

region. In 2023, focus was placed on optimising our own sales network as well as strengthening

cooperation with agencies and intermediaries; however, there was a slight decline in activity via

the bank sales channel. In these markets, the Group cooperates with more than 1,480 insurance

agencies, with most partnerships being entered into in Serbia.

See Section

11.3.4 Responsibility

to suppliers, Remuneration of insurance agency companies and sales staff

for more information.

In the claims segment, the number of contractors increased, and the forms of cooperation with

them were enhanced in 2023. Our business partners were further empowered to report claims,

simplifying their operations by utilising modern software solutions. Clients have access to

insurance services also via call centres, where they can receive the necessary information;

furthermore, clients may take out insurance, report a claim and request assistance services via

the telephone or online.

13.1

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

▪

Zavarovalnica Triglav d.d., Greek Branch, Athens

171

▪

Pozavarovalnica Triglav Re d.d., Ljubljana – registered office

▪

Triglav Zdravstvena zavarovalnica d.d., Ljubljana – registered office

▪

Triglav, pokojninska družba d.d., Ljubljana – registered office

▪

Triglav Osiguranje d.d., Zagreb – registered office

Branch offices:

▪

Zagreb

▪

Čakovec

▪

Varaždin

▪

Koprivnica

▪

Osijek

▪

Rijeka

▪

Pula

▪

Split

▪

Triglav Osiguranje a.d.o., Belgrade – registered office

Branch offices

and representative offices:

▪

Belgrade

▪

Subotica

▪

Zrenjanin

▪

Kikinda

▪

Vršac

▪

Pančevo

▪

Bečej

▪

Novi Sad

▪

Sremska Mitrovica

▪

Bogatić

▪

Šabac

▪

Valjevo

▪

Kraguljevac

▪

Jagodina

▪

Bor

▪

Užice

▪

Negotin

▪

Čačak

▪

Kraljevo

▪

Novi Pazar

▪

Kruševac

▪

Niš

▪

Leskovac

▪

Vranje

▪

Sombor

▪

Prijepolje

▪

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

▪

Bosanski Petrovac

172

▪

Triglav Osiguranje a.d.o., Banja Luka – registered office

Branch offices:

▪

Banja Luka

▪

Doboj

▪

Prijedor

▪

Gradiška

▪

Pale

▪

Bijeljina

▪

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

13.2

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

13.3

Other

▪

Triglav INT, holdinška družba d.o.o., Ljubljana – registered office

▪

Triglav Svetovanje, zavarovalno zastopanje d.o.o., Domžale – registered office

▪

Triglav zdravje asistenca, družba za zdravstveno dejavnost d.o.o., Ljubljana – registered

office

▪

Diagnostični center Bled d.o.o., Bled – registered office

▪

Triglav Savjetovanje d.o.o., Zagreb in liquidation – 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

▪

Triglavko d.o.o., Ljubljana – registered office

173

174

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 2023, 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 2023 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 significant 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 assets, 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

Uroš Ivanc

Management Board Member

Tadej Čoroli

Management Board Member

Marica Makoter

Management Board member

Blaž Jakič

Management Board Member

Ljubljana, 12 March 2024

175

Independent auditor's report

176

177

178

179

180

181

182

183

184

185

Financial statements

1.1

Statement of financial position

in EUR

Triglav Group

Zavarovalnica Triglav

Notes

31 December

2023

31 December

2022 adjusted*

1 January

2022

adjusted*

31 December

2023

31 December

2022

adjusted*

1 January 2022

adjusted*

ASSETS

4,099,028,699

3,802,347,752

4,125,426,785

2,945,426,056

2,730,774,810

3,000,522,158

Property, plant and equipment

3.7.1, 2.6

106,828,809

109,865,836

110,131,044

68,609,478

69,115,897

66,759,300

Investment property

3.7.2, 2.6

67,953,773

68,325,487

75,059,591

43,427,181

43,377,173

43,840,055

Right-of-use assets

3.7.3, 2.6

11,113,449

10,192,925

10,781,585

4,356,487

3,940,725

4,548,298

Intangible assets and goodwill

3.7.4, 2.6

54,656,306

53,720,259

54,248,284

30,879,149

30,917,910

31,976,178

Deferred tax assets

3.7.5, 2.6

21,967,548

14,786,228

226,447

12,798,238

10,921,528

Investments in subsidiaries

3.3

219,360,367

185,360,343

131,924,683

Investments in associates and jointly

controlled companies accounted for

using the equity method

3.3, 2.6

37,708,062

37,810,184

36,031,347

37,218,841

37,369,536

35,591,377

Financial investments

3.4, 2.6

2,642,840,770

2,557,183,016

2,917,157,534

1,888,444,496

1,882,599,813

2,260,834,241

– at fair value through other

comprehensive income

1,672,966,932

1,634,153,515

1,959,630,084

1,094,172,694

1,143,332,953

1,458,144,468

– at amortised cost

229,559,727

241,005,029

222,389,210

142,843,306

151,767,345

165,556,736

– at fair value through profit or loss

740,314,111

682,024,472

735,138,240

651,428,496

587,499,515

637,133,037

Financial contract assets

3.5, 2.6

674,115,145

613,818,646

643,548,868

259,624,041

234,968,514

249,789,207

– investments at amortised cost

283,215,425

321,859,990

11,225,305

86,215,285

99,398,022

– investments at fair value through

profit or loss

366,826,746

267,173,099

612,415,548

169,625,986

131,403,313

245,306,210

– receivables from financial

contracts

123,066

1,147,412

94,824

83,130

398,787

28,662

– cash from financial contracts

23,949,908

23,638,145

19,813,191

3,699,640

3,768,392

4,454,335

Insurance contract assets

3.1, 2.6

12,093,878

13,137,724

16,975,511

10,958,826

7,395,480

15,186,349

Reinsurance contract assets

3.2, 2.6

327,733,155

189,334,098

162,582,828

305,976,870

167,888,159

136,550,939

Non-current assets held for sale

3.7.6, 2.6

3,129,709

2,184,821

3,814,449

Current corporate income tax assets

3.7.16, 2.6

8,491,524

482,983

350,229

9,302,529

564,166

Other receivables

3.7.7, 2.6

37,644,003

50,478,337

28,118,577

20,047,025

35,155,610

11,888,779

Cash and cash equivalents

3.7.8, 2.6

84,420,667

76,066,279

63,028,569

31,679,444

19,296,850

9,458,656

Other assets

3.7.9, 2.6

8,331,901

4,960,929

3,371,922

2,743,084

2,467,272

1,609,930

EQUITY AND LIABILITIES

4,099,028,699

3,802,347,752

4,125,426,785

2,945,426,056

2,730,774,810

3,000,522,158

Equity

3.7.10, 2.6

891,099,983

896,965,702

1,037,163,574

669,221,118

658,949,145

770,656,161

Controlling interests

887,415,730

893,351,576

1,034,827,038

669,221,118

658,949,145

770,656,161

– share capital

73,701,392

– share premium

50,322,579

50,304,673

50,283,747

53,412,884

– reserves from profit

505,102,982

481,833,960

421,633,958

483,762,643

464,762,643

404,562,643

– treasury share reserves

364,680

– treasury shares

-364,680

– accumulated other comprehensive

income

-37,415,983

-60,591,408

12,397,963

-29,509,839

-46,309,356

11,657,953

– retained earnings from previous

years

306,091,948

418,315,033

404,479,317

68,191,612

164,656,172

190,605,740

– net profit or loss for the year

-7,192,538

-67,037,486

75,439,847

19,662,426

-51,274,590

36,715,549

– translation differences

-3,194,650

-3,174,588

-3,109,186

Non-controlling interests

3,684,253

3,614,126

2,336,536

Subordinated liabilities

3.7.11, 2.6

49,994,402

49,941,796

49,891,466

49,994,402

49,941,795

49,891,466

Deferred tax liabilities

3.7.5, 2.6

1,865,810

2,051,026

26,507,870

23,796,735

Financial contract liabilities

3.5, 2.6

674,115,145

613,818,646

643,548,868

259,624,041

234,968,514

249,789,207

Insurance contract liabilities

3.1, 2.6

2,330,647,605

2,084,328,485

2,244,772,217

1,885,673,792

1,688,411,267

1,830,687,907

Reinsurance contract liabilities

3.2, 2.6

6,460,600

9,465,062

2,150,020

4,052,384

1,830

Provisions

3.7.12, 2.6

30,347,485

33,284,702

26,362,804

14,323,506

17,035,092

14,820,276

Lease liabilities

3.7.3, 2.6

11,665,333

10,593,326

11,148,494

4,573,011

4,054,668

4,643,844

Other financial liabilities

663,442

1,478,259

2,255,152

22,769

22,640

1,690,586

Current corporate income tax liabilities

3.7.16, 2.6

571,555

7,232,517

3,167,125

9,697,471

Other liabilities

3.7.13, 2.6

101,597,339

93,188,231

78,459,195

61,993,417

63,641,834

54,544,146

* The data for the comparative period are adjusted in accordance with the two new accounting standards, as described in Section 2.6.

The notes in Section 2, 3 and 4 are an integral part of the financial statements.

186

1.2

Statement of profit or loss

in EUR

IZKAZ POSLOVNEGA IZIDA

Triglav Group

Zavarovalnica Triglav

Notes

2023

2022

adjusted*

2023

2022

adjusted*

Insurance service result

59,536,977

69,857,166

61,094,042

36,298,582

– insurance income

3.1, 2.6

1,351,186,665

1,206,602,864

775,637,370

690,204,223

– insurance service expenses

3.1, 2.6

-1,323,256,258

-1,032,291,790

-753,990,974

-578,534,383

– net reinsurance service result

3.2, 2.6

31,606,570

-104,453,908

39,447,646

-75,371,258

Investment result

3.4, 2.6

83,831,187

-88,623,501

70,134,725

-81,610,180

– interest income calculated using the effective interest method

35,098,297

26,675,896

21,611,210

17,120,984

– dividend income

2,705,064

4,686,546

2,441,534

4,410,224

– net gains and losses on financial investments

46,406,067

-112,870,867

44,714,780

-98,553,677

– net impairment and reversal of impairment of financial investments

2,291,758

-7,545,764

1,295,450

-5,131,544

– other effects of investing activities

-2,669,999

430,688

71,751

543,833

Financial result from insurance contracts

-69,677,936

82,222,007

-62,784,098

77,009,295

– financial result from insurance contracts

3.1, 2.6

-69,743,454

83,236,356

-62,893,952

77,839,717

– financial result from reinsurance contracts

3.2, 2.6

65,518

-1,014,349

109,854

-830,422

Income from asset management

3.7.14, 2.6

39,685,487

37,468,494

2,854,726

2,735,182

Non-attributable operating expenses

3.6, 2.6

-93,168,469

-89,635,413

-39,248,760

-39,904,751

Net other operating income and expenses

3.7.14, 2.6

1,500,547

-14,555,569

-495,030

-24,758,574

Net other financial income and expenses

-3,691,510

-2,046,113

-2,818,078

-2,536,945

Net impairment and reversal of impairment of non-financial assets

3.3, 2.6

-2,515,516

-818

-2,502,745

-3,920,199

Gains and losses on investments in associates

3.7.15, 2.6

2,242,935

1,842,183

18,585,761

34,543,272

Net other income and expenses

3,316,735

-6,554,977

740,962

3,537,310

Profit or loss before tax

21,060,437

-10,026,541

45,561,505

1,392,992

Tax expense

3.7.16, 2.6

-4,795,242

3,054,107

-6,899,079

7,532,418

NET PROFIT OR LOSS FOR THE PERIOD

16,265,195

-6,972,434

38,662,426

8,925,410

Net earnings per share (basic and diluted)

0.708

-0.301

Controlling interests

16,076,485

-6,837,486

Non-controlling interests

188,710

-134,948

* The data for the comparative period are adjusted in accordance with the two new accounting standards, as described in Section 2.6.

1.3

Statement of other comprehensive income

in EUR

Triglav Group

Zavarovalnica Triglav

2023

2022

adjusted*

2023

2022

adjusted*

Net profit for the period after tax

16,265,195

-6,972,434

38,662,426

8,925,410

Other comprehensive income after tax

34,671,532

-50,932,492

28,447,417

-36,512,374

Items that will not be reclassified to profit or loss in future periods

2,819,594

-9,367,539

2,562,939

-8,977,350

Effects of equity instruments measured through other comprehensive

income

4,411,447

-13,109,170

4,332,776

-12,621,095

Actuarial gains and losses

-1,522,053

1,450,594

-1,594,009

1,419,041

Other net gains and losses that will not be reclassified to profit or loss in

future periods

127,558

Tax on items that will not be reclassified to profit or loss

-197,358

2,291,037

-175,828

2,224,704

Items that may be reclassified to profit or loss in future periods

31,897,933

-41,504,716

25,884,478

-27,535,024

Accumulated insurance finance income and expenses

-49,148,615

178,835,577

-37,049,204

151,102,512

Accumulated reinsurance finance income and expenses

3,647,396

-6,792,479

4,090,372

-10,002,491

Effects of debt instruments measured through other comprehensive income

81,764,009

-221,629,722

62,191,263

-172,788,948

Other items

-67,105

Tax on items that may be reclassified to profit or loss in future periods

-4,364,857

8,149,013

-3,347,953

4,153,903

Translation differences

-45,995

-60,237

COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX

50,936,727

-57,904,926

67,109,843

-27,586,964

Controlling interests

50,822,202

-57,416,893

Non-controlling interests

114,525

-488,033

* The data for the comparative period are adjusted in accordance with the two new accounting standards, as described in Section 2.6.

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.

187

1.4

Statement of changes in equity

Notes to the changes in Group's equity are included in Section 3.7.10.

in EUR

Reserves from profit

Triglav Group

Share capital

premium

Contingen

cy reserves

Legal and

statutory

reserves

Treasury

reserves

Treasury

Other

reserves from

profit

Accumulated

other

comprehensive

income

Retained

earnings

Net profit or

loss

Translation

differences

Total equity

attributable to

controlling

interests

Equity

attributable to

non-controlling

interests

Total

As at 1 January 2023

73,701,392

50,304,673

640,340

20,306,674

364,680

-364,680

460,886,946

-60,591,408

418,315,033

-67,037,486

-3,174,588

893,351,576

3,614,126

896,965,702

Comprehensive income for the

period after tax

23,175,425

11,590,354

16,076,485

-20,062

50,822,202

114,525

50,936,727

– net profit

16,076,485

188,710

16,265,195

– other comprehensive income

23,175,425

11,590,354

-20,062

34,745,717

-74,185

34,671,532

Dividend payment

-56,775,954

-1,135

-56,777,089

Allocation of last year's net profit

to retained earnings

-67,037,485

67,037,485

Allocation of net profit to reserves

from profit

23,269,022

-23,269,022

Change in Group

17,906

-43,263

-25,357

As at 31 December 2023

73,701,392

50,322,579

640,340

20,306,674

364,680

-364,680

484,155,968

-37,415,983

306,091,948

-7,192,538

-3,194,650

887,415,730

3,684,253

891,099,983

in EUR

Reserves from profit

Triglav Group

Share capital

premium

Contingen

cy reserves

Legal and

statutory

reserves

Treasury

reserves

Treasury

Other

reserves from

profit

Accumulated

other

comprehensive

income

Retained

earnings

Net profit or

loss

Translation

differences

Total equity

attributable to

controlling

interests

Equity

attributable to

non-controlling

interests

Total

As at 31 December 2021

73,701,392

50,283,747

640,340

20,306,672

364,680

-364,680

400,686,946

77,834,278

234,588,994

75,439,847

-2,970,993

930,511,223

2,475,645

932,986,868

Impacts of the transition to new

accounting standards

-0

-65,436,315

169,890,323

-138,193

104,315,815

-139,109

104,176,706

As at 1 January 2022

73,701,392

50,283,747

640,340

20,306,672

364,680

-364,680

400,686,946

12,397,963

404,479,317

75,439,847

-3,109,186

1,034,827,038

2,336,536

1,037,163,574

Comprehensive income for the

period after tax

-72,989,371

22,471,236

-6,837,486

-61,272

-57,416,893

-488,033

-57,904,926

– net profit

-6,837,486

-134,948

-6,972,434

– other comprehensive income

-72,989,371

22,471,236

-61,272

-50,579,407

-353,085

-50,932,492

Dividend payment

-84,030,141

-22,199

-84,052,340

Allocation of last year's net profit

to retained earnings

75,439,847

-75,439,847

Allocation of net profit to reserves

from profit

60,200,000

-60,200,000

Change in Group

20,926

-45,226

-4,130

-28,428

1,787,822

1,759,394

As at 31 December 2022

73,701,392

50,304,673

640,340

20,306,674

364,680

-364,680

460,886,946

-60,591,408

418,315,033

-67,037,486

-3,174,588

893,351,576

3,614,126

896,965,702

188

Notes to the changes in Company's equity are included in Section 3.7.10.

Reserves from profit

in EUR

Zavarovalnica Triglav

Share capital

premium

Legal and

statutory

reserves

Other reserves

from profit

Accumulated

other

comprehensive

income

Retained earnings

Net profit or

loss

Total

As at 1 January 2023

73,701,392

53,412,884

4,662,643

460,100,000

-46,309,356

164,656,172

-51,274,590

658,949,145

Comprehensive income for the

period after tax

16,799,517

11,647,900

38,662,426

67,109,843

– net profit

38,662,426

– other comprehensive income

16,799,517

11,647,900

28,447,417

Dividend payment

-56,837,870

Allocation of last year's net profit

to retained earnings

-51,274,590

51,274,590

Allocation of net profit to reserves

from profit

19,000,000

-19,000,000

As at 31 December 2023

73,701,392

53,412,884

4,662,643

479,100,000

-29,509,839

68,191,612

19,662,426

669,221,118

Reserves from profit

in EUR

Zavarovalnica Triglav

Share capital

premium

Legal and

statutory

reserves

Other reserves

from profit

Accumulated

other

comprehensive

income

Retained earnings

Net profit or

loss

Total

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

Impact of the transition to new

accounting standards

-44,226,681

139,660,909

95,434,228

As at 1 January 2022

73,701,392

53,412,884

4,662,643

399,900,000

11,657,953

190,605,740

36,715,549

770,656,161

Comprehensive income for the

period after tax

-57,967,309

21,454,935

8,925,410

-27,586,964

– net profit

8,925,410

– other comprehensive income

-57,967,309

21,454,935

-36,512,374

Dividend payment

-84,120,052

Allocation of last year's net profit

to retained earnings

36,715,549

-36,715,549

Allocation of net profit 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

-46,309,356

164,656,172

-51,274,590

658,949,145

189

1.5

Cash flow statement

in EUR

Triglav Group

Zavarovalnica Triglav

2023

2022

adjusted*

2023

2022

adjusted*

CASH FLOWS FROM OPERATING ACTIVITIES

Net profit

16,265,195

-6,972,434

38,662,426

8,925,410

Adjustments:

– depreciation and amortisation

25,346,177

26,537,016

17,308,515

17,097,319

– financial income/expenses from financial investments

-86,501,186

89,054,189

-86,454,374

49,452,245

– income from investment property

-7,441,237

-9,106,100

-6,195,418

-6,116,290

–gains/losses on the sale of property, plant and equipment,

intangible assets and investment property

-889,656

-9,045,260

-602,110

-364,792

– revaluation operating income/expenses

589,248

440,237

2,506,191

3,922,362

– other financial expenses

3,230,618

3,007,931

2,601,749

2,623,857

– change in other provisions

-8,117,440

9,841,675

-4,334,041

4,587,460

– corporate income tax excluding the change in deferred taxes

14,792,092

25,148,410

10,092,384

20,633,936

Net income before changes in net operating assets (a+b)

-42,726,189

128,905,664

-26,414,678

100,761,507

Net change in insurance and reinsurance contracts

66,797,983

-34,994,768

22,766,477

-47,481,421

Change in other receivables and assets

-6,163,625

-25,549,950

-1,366,462

-21,913,864

Change in other liabilities

-19,561,028

23,928,117

32,070,326

8,802,803

Paid corporate income tax

-29,461,595

-19,743,890

-29,086,200

-10,934,058

Changes in net operating assets – operating items of the statement

of financial position

11,611,735

-56,360,491

24,384,141

-71,526,540

Net cash flow from operating activities (c+d)

-31,114,454

72,545,173

-2,030,537

29,234,967

CASH FLOWS FROM INVESTING ACTIVITIES

Cash inflows from investing activities

770,193,056

882,082,442

474,458,520

700,930,807

Cash inflows from interest from investing activities

35,330,665

26,677,171

16,422,489

21,105,908

Cash inflows from dividends and profit sharing

2,767,739

4,698,399

18,895,609

37,123,845

Cash inflows from investment property

7,862,736

24,592,229

6,384,208

6,269,595

Cash inflows from the disposal of property, plant and equipment

2,610,538

552,243

977,869

486,980

Cash inflows from the disposal of financial investments

721,621,378

825,562,400

431,778,345

635,944,479

Cash outflows from investing activities

-667,224,400

-852,255,389

-399,702,306

-632,774,776

Cash outflows for the acquisition of intangible assets

-13,920,475

-12,386,110

-10,247,679

-9,111,857

Cash outflows for the acquisition of property, plant and

equipment

-7,475,198

-10,121,169

-5,025,021

-6,856,365

Cash outflows for the purchase of investment property

-1,915,560

-2,586,628

-1,622,882

-1,152,492

Cash outflows for the acquisition of financial investments

-643,913,167

-827,161,482

-382,806,724

-615,654,062

– cash outflows for investments in subsidiaries and other

companies

-25,352

-35,987

-34,000,023

-57,355,448

– other cash outflows for the acquisition of financial

investments

-643,887,815

-827,125,495

-348,806,701

-558,298,614

Net cash flow from investing activities (a+b)

102,968,656

29,827,053

74,756,214

68,156,031

CASH FLOWS FROM FINANCING ACTIVITIES

Cash inflows from financing activities

Cash outflows for financing activities

-63,499,814

-89,334,516

-60,343,083

-87,552,804

Cash outflows for interest paid

-2,973,984

-2,625,553

-2,195,486

-2,266,934

Cash outflows for payments of financial liabilities

-3,748,740

-2,656,625

-1,309,727

-1,165,822

Cash outflows for dividend payments and other participation in

profits

-56,777,090

-84,052,338

-56,837,870

-84,120,048

Total cash flows from financing activities (a+b)

-63,499,814

-89,334,516

-60,343,083

-87,552,804

Opening balance of cash and cash equivalents

76,066,279

63,028,569

19,296,850

9,458,656

Net cash flow for the period

8,354,388

13,037,710

12,382,594

9,838,194

Closing balance of cash and cash equivalents

84,420,667

76,066,279

31,679,444

19,296,850

* The data for the comparative period are adjusted in accordance with the two new accounting standards, as described in Section 2.6.

** Exchange rate differences are already included in specific items.

190

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. 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.

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 on 31. December 2023 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 2023:

▪

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);

▪

Unit linked fund where policyholders bear investment risk (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.

The Company established a branch in Greece in 2023 under the name Zavarovalnica Triglav, d.d.

– Greek Branch.

191

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 2023 were:

▪

Andrej Andoljšek, Chairman,

▪

Igor Stebernak, Vice Chairman,

▪

Tomaž Benčina, Member,

▪

Jure Valjavec, Member,

▪

Monica Cramer Manhem, Member,

▪

Tim Umberger, Member,

▪

Aleš Košiček, Member – Employee Representative and

▪

Janja Strmljan Čevnja, Member – Employee Representative.

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.

In 2023, the Management Board was composed of:

▪

Andrej Slapar, President,

▪

Uroš Ivanc, Member,

▪

Tadej Čoroli, Member,

▪

Marica Makoter, Member and

▪

Blaž Jakič, 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 2023 on 12 March 2024. The annual report is published on the Company’s website

(www.triglav.eu).

2.1.3

Data on employees

In 2023, the Group employed an average of 5,190 employees (2022: 5,286), of which 2,239 were

employees of Zavarovalnica Triglav (2022: 2,231).

As at 31 December 2023, the Group employed 5,318 employees (31 December 2022: 5,306), of

which

2,243

were

employees

Zavarovalnica

Triglav

(31

December

2022:

2,243).

192

The number of employees within the Group and at Zavarovalnica Triglav based on their level of

education is shown in the table below.

Education level	Triglav Group		Zavarovalnica Triglav
	31 December 2023	31 December 2022	31 December 2023	31 December 2022
2–5 Upper secondary or general education or below	2,181	2,204	746	772
6/1 First-cycle education/professional higher education	521	527	353	363
6/2 First-cycle education	824	809	479	458
7 Second-cycle education	1,552	1,530	565	551
8/1 Third-cycle education/master's degree in science	218	214	92	90
8/2 Third-cycle education/doctoral degree in science	22	22	8	9
TOTAL	5,318	5,306	2,243	2,243
Number of employees (full time equivalent)	5,190	5,177	2,215	2,213

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 business segments 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.

193

Triglav Group subsidiaries

All subsidiaries except Zavod 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.

COMPANY	ADDRESS	TAX RATE (in %)	ACTIVITY	EQUITY STAKE (in %)		SHARE OF VOTING RIGHTS (in %)
				2023	2022	2023	2022
Pozavarovalnica Triglav RE, d.d.	Miklošičeva cesta 19, Ljubljana, Slovenija	19	Reinsurance	100.00	100.00	100.00	100.00
Triglav, Zdravstvena zavarovalnica, d.d.	Dunajska cesta 22, Ljubljana, Slovenija	19	Insurance	100.00	100.00	100.00	100.00
Triglav Osiguranje, d.d., Zagreb	Antuna Heinza 4, Zagreb, Hrvaška	18	Insurance	100.00	100.00	100.00	100.00
Triglav Osiguranje, d.d., Sarajevo	Dolina 8, Sarajevo, Bosna in Hercegovina	10	Insurance	97.78	97.78	98.87	98.87
Lovćen Osiguranje, a.d., Podgorica	Ulica slobode 13a, Podgorica, Črna gora	9-15	Insurance	99.07	99.07	99.07	99.07
Lovćen životna osiguranja, a.d., Podgorica	Ulica Marka Miljanova 29/III, Podgorica, Črna gora	9-15	Insurance	99.07	99.07	99.07	99.07
Triglav Osiguranje, a.d.o., Beograd	Milutina Milankovića 7a, Beograd, Srbija	15	Insurance	100.00	100.00	100.00	100.00
Triglav Osiguranje, a.d., Banja Luka	Ulica Prvog krajiškog korpusa 29, Banja Luka, Bosna in Hercegovina	10	Insurance	97.78	100.00	100.00	100.00
Triglav Osiguruvanje, a.d., Skopje	Bulevar 8-mi Septemvri 16, Skopje, Severna Makedonija	10	Insurance	82.01	81.69	82.01	81.69
Triglav Osiguruvanje Život, a.d., Skopje	Bulevar 8-mi Septemvri 18, Skopje, Severna Makedonija	10	Insurance	97.43	97.38	97.43	97.38
Triglav penzisko društvo, a.d., Skopje	Bulevar 8-mi septemvri 18, Skopje, Severna Makedonija	10	Fund management	100.00	100.00	100.00	100.00
Triglav, pokojninska družba, d.d.	Dunajska cesta 22, Ljubljana, Slovenija	0	Fund management	100.00	100.00	100.00	100.00
Triglav INT, d.o.o.	Dunajska cesta 22, Ljubljana, Slovenija	19	Holding company	100.00	100.00	100.00	100.00
Triglav Skladi, d.o.o.	Dunajska cesta 20, Ljubljana, Slovenija	19	Fund management	100.00	100.00	100.00	100.00
Triglav Avtoservis, d.o.o.	Verovškova 60b, Ljubljana, Slovenija	19	Maintenance and repair of motor vehicles	100.00	100.00	100.00	100.00
Triglav Svetovanje, d.o.o.	Ljubljanska cesta 86, Domžale, Slovenija	19	Insurance agency	100.00	100.00	100.00	100.00
Triglav, Upravljanje nepremičnin, d.o.o.	Dunajska cesta 22, Ljubljana, Slovenija	19	Real estate management	100.00	100.00	100.00	100.00
Triglav Savjetovanje, d.o.o., Sarajevo	Dolina 8, Sarajevo, Bosna in Hercegovina	10	Insurance agency	97.78	97.78	98.87	98.87
Triglav Savjetovanje, d.o.o., Zagreb	Sarajevska cesta 60, Zagreb, Hrvaška	18	Insurance	100.00	100.00	100.00	100.00
Triglav Savetovanje, d.o.o., Beograd	Zelengorska 1g, Beograd, Srbija	15	Insurance agency	100.00	100.00	100.00	100.00
Autocentar BH, d.o.o.	Džemala Bijedića 165b, Sarajevo, Bosna in Hercegovina	10	Maintenance and repair of motor vehicles	97.78	97.78	98.87	98.87
Sarajevostan, d.o.o.	Džemala Bijedića 147, Sarajevo, Bosna in Hercegovina	10	Real estate management	90.95	90.95	91.97	91.97
Lovćen auto, d.o.o., Podgorica	Novaka Miloševa 6/2, Podgorica, Črna gora	9-15	Maintenance and repair of motor vehicle	99.07	99.07	99.07	99.07
Triglav upravljanje nekretninama, d.o.o., Zagreb	Ulica Josipa Marohnića 1/1, Zagreb, Hrvaška	18	Real estate management	100.00	100.00	100.00	100.00
Triglav upravljanje nekretninama, d.o.o., Podgorica	Džordža Vašingtona 44, Podgorica, Črna gora	9-15	Real estate management	100.00	100.00	100.00	100.00
Triglav upravljanje nekretninama, d.o.o., Sarajevo	Dolina 8, Sarajevo, Bosna in Hercegovina	10	Real estate management	100.00	100.00	100.00	100.00
TRIGLAV upravuvanje so nedvižen imot DOOEL, Skopje	Dame Gruev št.8, Skopje, Severna Makedonija	10	Real estate management	100.00	-	100.00	-
Triglav Fondovi, d.o.o., Sarajevo	Ulica Mehmed-paše Sokolovića 15, Sarajevo, Bosna in Hercegovina	10	Fund management	62.54	62.54	62.54	62.54
Triglav zdravje asistenca, d.o.o., Ljubljana	Dunajska cesta 22, Ljubljana, Slovenija	19	Other human health activities	100.00	100.00	100.00	100.00
Zavod Vse bo v redu	Miklošičeva cesta 19, Ljubljana, Slovenija	19	Corporate Social Responsibility Institute	100.00	100.00	100.00	100.00

194

Condensed financial statements of the Triglav Group companies

										in EUR
COMPANY	ASSETS		LIABILITIES		EQUITY		INCOME		NET PROFIT/LOSS
	2023	2022 adjusted*	2023	2022 adjusted*	2023	2022 adjusted*	2023	2022 adjusted*	2023	2022 adjusted*
Pozavarovalnica Triglav Re, d.d., Ljubljana	410,277,992	282,130,250	311,869,723	189,080,421	98,408,269	93,049,829	439,210,534	249,980,810	5,063,016	6,943,222
Triglav, Zdravstvena zavarovalnica, d.d., Ljubljana	79,728,538	86,327,285	40,187,489	49,682,106	39,541,049	36,645,178	213,523,824	206,099,017	-24,444,673	-2,585,365
Triglav Osiguranje, d.d., Zagreb	190,787,223	172,100,828	148,449,013	134,993,977	42,338,210	37,106,851	106,955,946	103,781,919	-3,858,646	-1,288,501
Triglav Osiguranje, d.d., Sarajevo	83,912,383	74,739,851	57,836,201	48,161,294	26,076,182	26,578,557	33,085,377	26,118,319	1,118,581	912,122
Lovćen Osiguranje, a.d., Podgorica	52,294,433	48,021,698	31,236,313	30,744,165	21,058,120	17,277,533	38,602,238	40,108,683	2,347,486	3,646,277
Lovćen životna osiguranja, a.d., Podgorica	9,446,837	7,825,978	5,258,146	3,506,413	4,188,691	4,319,565	4,039,491	4,454,307	-513,512	318,002
Triglav Osiguranje, a.d.o., Beograd	88,533,209	73,084,005	58,802,788	45,467,739	29,730,421	27,616,266	107,330,259	84,300,667	1,799,380	4,267,246
Triglav Osiguranje, a.d., Banja Luka	14,680,050	12,992,268	9,757,036	7,839,361	4,923,014	5,152,907	8,772,472	7,226,135	174,676	63,918
Triglav Osiguruvanje, a.d., Skopje	42,735,186	33,906,018	28,093,194	20,012,037	14,641,992	13,893,981	34,797,946	17,650,515	884,217	581,293
Triglav Osiguruvanje Život, a.d., Skopje	14,700,851	10,682,151	8,131,485	4,276,898	6,569,366	6,405,253	3,513,193	1,782,931	88,221	433,795
Triglav penzisko društvo, a.d., Skopje	3,938,167	3,337,877	192,283	158,530	3,745,884	3,179,347	914,821	519,140	-426,828	-658,779
Triglav, pokojninska družba, d.d., Ljubljana	482,831,854	444,936,402	419,510,811	387,175,730	63,321,043	57,760,672	9,586,894	5,259,683	4,599,439	-4,665,374
Triglav INT, d.o.o., Ljubljana	78,123,520	67,880,648	41,280	23,949	78,082,240	67,856,699	118	977,783	-274,458	-13,237,778
Triglav Skladi, d.o.o., Ljubljana	61,691,354	66,882,379	8,213,384	6,968,200	53,477,970	59,914,179	34,354,497	30,861,198	8,538,042	2,469,356
Triglav Avtoservis, d.o.o., Ljubljana	1,752,461	1,280,682	1,570,356	1,129,953	182,105	150,729	4,352,568	3,145,332	35,097	9,836
Triglav Svetovanje, d.o.o., Domžale	2,303,025	1,899,366	1,743,216	1,467,292	559,809	432,074	6,609,337	5,704,023	133,639	105,395
Triglav, Upravljanje nepremičnin, d.o.o., Ljubljana	29,406,171	29,055,430	2,585,145	3,442,253	26,821,026	25,613,177	4,815,090	15,994,113	1,214,903	10,527,056
Triglav Savjetovanje, d.o.o., Sarajevo	259,436	268,101	239,082	258,193	20,354	9,908	659,640	695,683	10,445	7,213
Triglav Savjetovanje, d.o.o., Zagreb	99,470	54,413	15,130	91,441	84,340	-37,028	373,596	370,325	-67,811	-126,524
Triglav Savetovanje, d.o.o., Beograd	85,345	91,746	56,631	95,375	28,714	-3,629	656,700	688,402	-4,296	-37,822
Autocentar BH, d.o.o., Sarajevo	2,833,784	2,574,025	769,430	530,336	2,064,354	2,043,689	1,760,693	1,764,978	71,795	82,924
Sarajevostan, d.o.o., Sarajevo	1,891,436	1,890,500	634,805	709,063	1,256,631	1,181,437	2,012,082	1,913,453	75,198	223,607
Lovćen auto, d.o.o., Podgorica	5,009,689	4,824,902	1,585,356	1,439,562	3,424,333	3,385,340	2,433,506	2,325,018	38,993	94,833
Triglav upravljanje nekretninama, d.o.o., Zagreb	523,837	456,763	731	728	523,106	456,035	123,473	1,048	67,074	-834
Triglav upravljanje nekretninama, d.o.o., Podgorica	619,201	790,983	80,022	194,397	539,179	596,586	26,866	12,248	-57,408	-116,225
Triglav upravljanje nekretninama, d.o.o., Sarajevo	1,255,589	990,356	300,675	5,169	954,914	985,187	77,346	8,397	-30,270	-13,521
TRIGLAV upravuvanje so nedvižen imot DOOEL, Skopje	3,194	-	0	-	3,194	-	0	-	-1,800	-
Triglav Fondovi, d.o.o., Sarajevo	4,156,529	4,181,525	72,903	20,242	4,083,626	4,161,283	520,201	144,563	-77,658	-786,808
Triglav zdravje asistenca, d.o.o., Ljubljana	3,714,997	6,100	1,169,220	599	2,545,777	5,501	1,069,490	2,455	47,777	-1,998
Zavod Vse bo v redu	240,727	98,730	10,593	0	230,135	98,730	182,256	364,907	131,405	-44,898

* The data for the comparative period are adjusted in accordance with the two new accounting standards, as described in Section 2.6.

The table shows the data before the elimination of intercompany transactions and other consolidation adjustments.

195

Non-controlling interests in the Triglav Group companies

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 December 2023	31 December 2022 adjusted*	31 December 2023	31 December 2022 adjusted*
CONDENSED BALANCE SHEET
Current assets	2,549,100	2,304,680	245,596	218,933
Current liabilities	2,018,497	2,102,737	72,823	19,044
Net current assets/liabilities	530,603	201,943	172,773	199,889
Non-current assets	40,186,086	31,601,338	3,910,933	3,962,592
Non-current liabilities	26,074,697	17,909,300	80	1,198
Net non-current assets/liabilities	14,111,389	13,692,038	3,910,853	3,961,394
Net assets	14,641,992	13,893,981	4,083,626	4,161,283

	2023	2022 adjusted*	2023	2022 adjusted*
CONDENSED COMPREHENSIVE INCOME
Net profit or loss for the year	884,217	581,293	-77,658	-786,808
Other comprehensive income	-136,212	-2,308,472	0	0
Total comprehensive income	748,005	-1,727,181	-77,658	-786,808

COMPANY	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)
	2023	2022	2023	2022	2023	2022 adjusted*	2023	2022 adjusted*
Triglav Osiguranje, d.d., Sarajevo	2.22	2.22	1.13	1.13	26,536	19,309	414,294	447,531
Triglav Osiguruvanje, a.d., Skopje	17.99	18.31	17.99	18.31	159,072	106,457	1,407,360	1,325,064
Lovćen Osiguranje, a.d., Podgorica	0.93	0.93	0.93	0.93	21,832	33,910	572,076	536,916
Lovćen životna osiguranja, a.d., Podgorica	0.93	0.93	0.93	0.93	-4,776	2,957	85,452	86,668
Triglav Osiguranje, a.d., Banja Luka	2.22	-	-	-	3,878	-	3,836	-
Triglav Savjetovanje, d.o.o., Sarajevo	2.22	2.22	1.13	1.13	232	160	-19,230	-19,462
Autocentar BH, d.o.o., Sarajevo	2.22	2.22	1.13	1.13	1,594	816	-142,651	-143,109
Lovćen auto, d.o.o., Podgorica	0.93	0.93	0.93	0.93	363	882	-398,132	-398,495
Triglav Osiguruvanje Život, a.d., Skopje	2.57	2.62	2.57	2.62	2,268	11,353	-5,769	-10,296
Sarajevostan, d.o.o., Sarajevo	9.05	9.05	8.03	8.03	6,801	-16,063	237,293	230,492
Triglav Fondovi, d.o.o., Sarajevo	37.46	37.46	37.46	37.46	-29,090	-294,728	1,529,724	1,558,817
TOTAL					188,710	-134,947	3,684,253	3,614,126

* Opening balances are recalculated in accordance with the two new accounting standards, as described in Section 2.6.

196

Associates and joint ventures of the Group and the Company

COMPANY	ADDRESS	TAX RATE (in%)	ACTIVITY
Nama, d.d.	Tomšičeva 1, Ljubljana, Slovenija	19	Retail trade
Triglavko, d.o.o.	Ulica XXX. divizije 23, Nova Gorica, Slovenija	19	Insurance agency
TRIGAL, upravljanje naložb in svetovanje, d.o.o.	Dunajska cesta 22, Ljubljana, Slovenija	19	Management of financial funds
Društvo za upravljanje EDPF, a.d., Banja Luka	Kralja Petra I Karađorđevića 109/III Banja Luka, Bosna in Hercegovina	10	Fund management
Diagnostični center Bled, d.o.o.	Pod skalo 4, Bled, Slovenija	19	Health
Alifenet d.o.o.	Dunajska cesta 22, Ljubljana, Slovenija	19	Fund management

	Triglav Group						Zavarovalnica Triglav
	SHARE IN CAPITAL (in %)		VOTING RIGHTS (in %)		INVESTMENT VALUE (in EUR)		VOTING RIGHTS (in %)		SHARE IN CAPITAL (in %)		INVESTMENT VALUE (in EUR)
COMPANY	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Nama, d.d.	39.15	39.15	39.15	39.15	4,648,981	4,496,424	39.07	39.07	39.07	39.07	4,648,981	4,496,424
Triglavko, d.o.o.	38.47	38.47	38.47	38.47	18,509	18,560	38.47	38.47	38.47	38.47	18,509	18,560
TRIGAL, upravljanje naložb in svetovanje, d.o.o.	49.90	49.90	49.90	49.90	10,925,240	10,925,240	49.90	49.90	49.90	49.90	10,925,240	10,925,240
Društvo za upravljanje EDPF, a.d.	34.00	34.00	34.00	34.00	489,221	440,648	0.00	0.00	0.00	0.00	0	0
Diagnostični center Bled, d.o.o.	50.00	50.00	50.00	50.00	21,560,000	21,856,110	50.00	50.00	50.00	50.00	21,560,000	21,856,110
Alifenet, d.o.o.	23.58	23.58	23.58	23.58	66,111	73,202	23.58	23.58	23.58	23.58	66,111	73,202
TOTAL					37,708,062	37,810,184					37,218,841	37,369,536

										in EUR
	ASSETS		LIABILITIES		EQUITY		REVENUES		PROFIT/LOSS
COMPANY	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Nama, d.d. *	13,526,992	13,319,084	1,904,376	2,083,400	11,622,617	11,235,685	11,850,849	11,326,818	475,421	459,994
Triglavko, d.o.o.	130,831	144,424	44,901	60,986	85,930	83,322	369,949	345,210	2,609	1,018
TRIGAL, upravljanje naložb in svetovanje, d.o.o.	23,869,050	23,607,734	1,080,653	1,274,288	22,788,397	22,333,446	1,611,679	1,385,607	-197,760	442,652
Društvo za upravljanje EDPF, a.d.	1,473,860	1,308,881	52,182	30,118	1,421,679	1,278,763	472,669	337,902	142,863	-59,835
Diagnostični center Bled, d.o.o.*	53,009,611	46,359,219	20,190,187	17,491,895	32,819,424	28,867,324	36,110,809	30,401,886	3,957,023	2,737,150

197

Presented below are the condensed balance sheet and comprehensive income for material investments in associates.

						in EUR
	Diagnostični center Bled d.o.o.		NAMA, d.d.		TRIGAL, d.o.o.
	31 December 2023	31 December 2022	31 December 2023	31 December 2022	31 December 2023	31 December 2022
CONDENSED BALANCE SHEET
Current assets	7,379,416	9,055,669	7,263,214	6,557,127	2,945,650	4,608,767
Current liabilities	7,414,397	6,757,176	1,467,430	1,384,924	344,565	283,850
Net current assets/liabilities	-34,981	2,298,493	5,795,784	5,172,203	2,601,085	4,324,917
Non-current assets	45,630,195	37,303,550	6,263,778	6,761,957	20,923,400	18,998,967
Non-current liabilities	12,775,790	10,734,719	436,946	698,476	736,088	990,438
Net non-current assets/liabilities	32,854,405	26,568,831	5,826,832	6,063,482	20,187,312	18,008,529
Net assets	32,819,424	28,867,324	11,622,616	11,235,685	22,788,397	22,333,446

	2023	2022	2023	2022	2023	2022
CONDENSED COMPREHENSIVE INCOME
Net profit or loss for the year	3,957,023	2,737,150	475,421	459,994	-197,760	442,652
Other comprehensive income	0	0	73,644	-74,031	0	0
Total comprehensive income	3,957,023	2,737,150	549,065	385,963	-197,760	442,652
Dividends from associates for the year	0	0	63,345	63,345	0	0

198

Changes in the structure of the Triglav Group in 2023

Changes in the operations of Triglav Zdravstvena zavarovalnica d.d., Ljubljana and related capital

increase

In April 2023, the legislative framework for the existing supplemental health insurance system

was changed in Slovenia, which significantly affected Triglav Zdravstvena zavarovalnica's

operations and its capital adequacy. As a result, Zavarovalnica Triglav d.d., as the sole

shareholder, increased the capital of said insurer in the amount of EUR 22,500,000 and thus

retained its 100% participating interest. Changes in the operations of Triglav, Zdravstvena

zavarovalnica d.d. are described in detail in Section 8.3 of the Business Report, which is part of

the Group's and the Company's Annual Report.

Capital increase of Triglav Savjetovanje d.o.o., Zagreb

Triglav Osiguranje d.d., Zagreb increased the capital of Triglav Savjetovanje d.o.o., Zagreb

through the in-cash contribution of EUR 189,180. With the capital increase, Triglav Osiguranje

d.d., Zagreb remained a 100% owner of said company. The capital increase had no impact on the

Group's consolidated financial statements.

Purchase of shares of Triglav Osiguruvanje a.d., Skopje from non-controlling interest holders

Triglav INT d.o.o., Ljubljana acquired a 0.32% participating interest from the non-controlling

interest holders of Triglav Osiguruvanje a.d., Skopje, thereby becoming its 82.01% owner. The

consideration totalled MAK 1,605,441 or EUR 25,350. 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 17,906.

Capital increase of Triglav Savetovanje d.o.o., Belgrade

Triglav Osiguranje d.d., Belgrade increased the capital of Triglav Savetovanje d.o.o., Belgrade

through the in-cash contribution of RSD 4,300,000 or EUR 36,705. With the capital increase,

Triglav Osiguranje d.d., Belgrade remained a 100% owner of said company. The capital increase

had no impact on the Group's consolidated financial statements.

Capital increase of Triglav zdravje asistenca, družba za zdravstveno dejavnost d.o.o.

Triglav Zdravstvena zavarovalnica, d.d. increased the capital of Triglav zdravje asistenca d.o.o. in

the amount of EUR 2,492,500, thereby remaining a 100% owner of said company. The capital

increase had no impact on the Group's consolidated financial statements.

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 1,000,000, thus remaining 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 10,500,000, thus remaining a 100% owner of said company.

The capital increase had no impact on the Group's consolidated financial statements.

199

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 in the amount of EUR 10,500,000. The capital increase was raised through an in-cash

contribution. Triglav INT, holdinška družba d.o.o., Ljubljana remained a 100% owner of said

company. The capital increase had no impact on the Group's consolidated financial statements.

Transfer of the participating interest in Triglav Osiguranje a.d., Banja Luka

Triglav INT, holdinška družba d.o.o., Ljubljana, sold its 100% participating interest in Triglav

Osiguranje d.d., Banja Luka. As a result, Triglav Osiguranje d.d., Sarajevo became a 100% owner

of Triglav Osiguranje a.d., Banja Luka. This transaction had no significant impact on the Triglav

Group's consolidated financial statements.

Establishment of Triglav, upravuvanje so nedvižen imot DOOEL Skopje

Triglav, Upravljanje nepremičnin d.o.o., Ljubljana established the Triglav, upravuvanje so

nedvižen imot DOOEL Skopje, 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.

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 2023 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 or amortised cost

basis, except in the case of financial instruments recognised at fair value through profit or loss

and financial instruments recognised at fair value through other comprehensive income, which

are measured at fair value.

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 disclosed 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).

200

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 persisting deteriorated

general economic and geopolitical situation.

Based on the assessments it can be confirmed that, in the given situation, the Triglav Group

remains financially stable and adequately liquid, and that the going concern assumption is

appropriate.

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, with the exception of those that are

not material for the Group's consolidated financial statements.

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 consolidated statement of profit or loss being recognised as gain

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.

201

All the Group subsidiaries that are significant to the Group’s financial statements are fully

consolidated. Exceptionally, companies that are insignificant from consolidated financial

statements

point of view, 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

fully eliminated.

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.

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.

Exchange rate differences arising from changes in the amortised cost of monetary items

denominated in foreign currency measured at fair value through other comprehensive income

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. Exchange rate differences from non-monetary items, such as equity

instruments measured at fair value through other comprehensive income are recognised

together with the effects of measurement at fair value in other comprehensive income and

accumulated in equity.

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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 profit or loss statement as part of

gains or losses on sale.

2.5

Significant accounting policies

2.5.1

Significant changes in accounting policies

Significant changes in accounting policies relate to the application of two new accounting

standards – IFRS 17 and IFRS 9, which are effective as of 1 January 2023, and to the change in the

valuation method of associates and joint ventures in Zavarovalnica Triglav's financial

statements. The data for the comparative period were adjusted to reflect the implementation of

the specified standards and amended accounting policies as of 1 January 2022.

IFRS 17 replaces IFRS 4 for annual periods beginning after 1 January 2023. For the Company and

the Group, this means significant changes in the classification, measurement and disclosure of

items in the financial statements that relate to insurance operations.

203

The transition to IFRS 17 led to a reassessment of underwriting and financial risks of pension

products in the savings phase (supplemental voluntary pension insurance). As a result of the

reassessment, these products no longer bear material underwriting risk and were therefore

reclassified from insurance to financial contracts upon the transition. The reclassification has a

material impact on the presentation in the financial statements:

▪

The value of financial investments is reduced and the value of financial contract assets is

increased.

▪

Insurance contract liabilities are reduced and financial contract liabilities are increased.

▪

Only income from entry fees, exit fees, management fees and any deficits will be recognised

in the statement of profit or loss. Pay-ins and pay-outs will no longer be treated as income

or expenses.

The amount of financial contract assets and liabilities is disclosed in Section 3.5.

IFRS 9 replaces IAS 39 and is effective for annual periods beginning after 1 January 2018, except

that Triglav Group, as an insurance group, has opted for the temporary exemption from the

application of IFRS 9 for annual periods before 1 January 2023. The implementation of the new

IFRS 9 as of 1 January 2023 has an impact on the classification, measurement and disclosure of

items in the financial statements relating to financial instruments.

The valuation method of investments in associates and joint ventures changed concurrently

with the transition to the two new accounting standards. These are now measured under the

equity method for the purposes of preparing both the separate and the consolidated financial

statements, whereas before the change of investments in associates and joint ventures were

disclosed at fair value in the separate financial statements.

See Section 2.6 for the effects of the transition.

The new accounting policies relating to insurance operations and financial instruments are set

out below.

2.5.2

Insurance and reinsurance contract assets and liabilities

2.5.2.1

Classification of contracts with policyholders and valuation approaches used

The Group's and the Company's contracts with policyholders are classified into two groups:

insurance contracts and financial contracts.

A contract is defined as an insurance contract when, at the time of conclusion, the Group and

the Company accept significant insurance risk from the policyholder by agreeing to compensate

the policyholder if they are adversely affected by a specified uncertain future insured event.

The Group and the Company assess whether the contract contains a significant insurance risk

by assessing whether the insured event could result in additional significant payouts to the

policyholder, even if the insured event is highly unlikely.

204

This assessment is carried out for each contract separately on the contract issue date. In this

assessment, the Group and the Company take into account all their material rights and

obligations, regardless of whether they arise from a contract, law or regulation.

Whether or not a contract contains insurance risk, and whether that risk is significant, is a matter

of subjective judgement. Life insurance contracts whose primary purpose is to cover the risk of

death or to provide a lifetime annuity contain significant insurance risk and are classified as

insurance contracts. Contracts with additional insurance are also classified as insurance

contracts. Unit-linked life insurance contracts are classified as insurance contracts if the sum

insured in the event of death exceeds a certain percentage of the total of the initial payment and

the first instalment of the premium for the basic insurance, or if the premium for additional

insurance exceeds a certain proportion of the total premium. If the insurance contract does not

contain significant insurance risk and is insignificant in terms of the whole group of insurance

contracts, it is treated as an insurance contract.

Insurance contracts are valued in the financial statements in accordance with the general model

as prescribed by IFRS 17 (the general model, hereinafter: BBA) or in accordance with the

simplified premium allocation approach (hereinafter: PAA) when the required conditions are

met.

The Group and the Company also enter into insurance contracts with their policyholders that are

substantially investment-related under which the policyholders participate in the return on

underlying items. In these cases, all contracts are treated as insurance contracts with direct

participation features 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;

▪

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.

Insurance contracts with direct participation features are accounted for using the variable fee

approach (hereinafter: VFA). The latter adapts the general model to reflect that the

consideration received by the entity in respect of the contracts is a variable fee only.

All contracts that take the form of an insurance contract but do not meet the definition of an

insurance contract under IFRS 17 are treated as financial contracts. Distinct investment

components of pension insurance contracts that are separated from host contracts in

accordance with IFRS 17.11 are also treated as financial contracts because these contracts do not

bear insurance risk at the time of accumulation (saving).

205

Inward reinsurance contracts are treated in the same way as insurance contracts.

Approaches to the valuation of contracts with policyholders

The approaches used to value contracts with policyholders are set out in the table below.

Method	Insurance class	Insurance group
general model	life insurance	long-term traditional life insurance (in the event of death, term insurance, credit insurance, etc.)
general model	life insurance	traditional insurance with profit participation (in the event of death, endowment, annuity, old pension products)
general model	life insurance	unit-linked insurance with a high share of the premium invested in a guarantee fund
general model	life insurance	pension products in the annuity payout phase
general model	non-life insurance	non-life insurance with an uneven distribution of coverage units and long-term insurance (credit insurance, construction and erection insurance, etc.)
premium allocation approach	non-life insurance	other non-life insurance
variable fee approach	life insurance	unit-linked insurance with a low share of the premium invested in a guarantee fund
valuation under IFRS 9	life insurance	pension products in the accumulation phase

The Group and the Company may enter into two or more contracts simultaneously with the

same or related parties in order to achieve a general commercial effect. The Group and the

Company account for such a set of contracts as a single contract when this reflects the content

of the contract. In doing so, the Group and the Company assess:

▪

whether the rights and obligations are different if they are treated separately or together;

▪

whether the value of one contract can be measured without considering the other.

In addition to the provision of insurance coverage, a contract may contain one or more

components that would fall within the scope of another standard if treated as separate

contracts. These components are:

▪

investment components,

▪

derivatives,

▪

service components.

The investment component refers to the Group's and the Company's contractual obligation to

pay a certain amount to the policyholder regardless of whether an insured event occurs. The

Group and the Company separate the investment component from the host insurance contract,

provided that this investment component is distinct from the insurance contract. The valuation

of the separate investment component is carried out in accordance with IFRS 9, unless it is an

investment contract with discretionary participation features, which falls within the scope of

IFRS 17. The investment component is distinct if both the following conditions are met:

▪

the investment component and the insurance component are not highly interrelated;

▪

a contract with equivalent terms is sold, or could be sold, separately in the same market or

the same

jurisdiction, either by the Group or the Company or by other companies that issue

insurance contracts or by other parties. The Group and the Company take into account all

information reasonably available in making this determination.

206

The investment component and the insurance component are highly interrelated if:

▪

the policyholder is unable to benefit from one component unless the other is also present.

Thus, if the lapse or maturity of one component in a contract causes the lapse or maturity of

the other, IFRS 17 will be applied to account for the combined investment component and

insurance component; or

▪

the inability to measure one component without considering the other. Thus, if the value of

one component varies according to the value of the other, IFRS 17 will be applied to account

for the combined investment and insurance component.

The service component refers to the transfer of non-insurance goods or services. If the

policyholder has the right to the service component regardless of whether an insured event

occurs, the component is separated from the insurance component and accounted for in

accordance with IFRS 15. When the transfer of goods or services is linked to the occurrence of a

claim, it is accounted for together with insurance components using IFRS 17.

2.5.2.2

Level of aggregation and initial recognition of insurance contracts

Insurance contracts subject to similar risks and managed together are aggregated into

portfolios. Each portfolio is further divided into groups of contracts issued in the same calendar

year (annual cohorts) and by profitability, as follows:

▪

a group of insurance contracts that are onerous at initial recognition;

▪

a group of insurance contracts that have no significant possibility of becoming loss-making

(onerous) at any time;

▪

a group of any remaining insurance contracts.

Insurance contracts are allocated to portfolios and groups at initial recognition and the

allocation is not changed in subsequent periods.

A group of insurance contracts is recognised from the earliest of the following:

▪

the beginning of the coverage period of the group of contracts;

▪

the date when the first payment from a policyholder in the group becomes due or when this

payment is received; and

▪

when a group of insurance contracts becomes onerous.

The Group and the Company recognise only insurance contracts issued within a period of one

year that meet recognition criteria by the reporting date. Subject to this limitation, a group of

insurance contracts may remain open even after the end of the current reporting period. New

insurance contracts are included in the group when they meet recognition criteria in

subsequent reporting periods, until all insurance contracts expected to be included in the

group are recognised.

2.5.2.3

Recognition and allocation of cash flows

Cash flows comprise estimates of future cash flows, an adjustment to reflect the time value of

money and the financial risks related to the future cash flows, and a risk adjustment for non-

financial risk.

Cash flows that relate directly to the fulfilment of the contract, including cash flows for which

the Group and the Company have discretion over the amount or timing, are treated as cash flows

207

within the boundary of the insurance contract. The assessment of the contract boundary that

determines which future cash flows are included in the measurement of an insurance contract

is made by considering the substantial rights and obligations of the insurance contract.

Cash flows related to a group of insurance contracts include premium payments, claims and

benefit paid, insurance acquisition cash flows and other costs incurred in the fulfilment of

insurance contracts. These include both direct costs and the allocation of fixed and variable

overheads.

Premium payments are considered to be premium payments and any cash flows arising from

those premiums.

Claims and benefit payments are payments made to the policyholder, including claims that have

already been incurred but not yet paid, as well as payments arising from future claims for which

the Group and the Company have obligations. With respect to claims, the Group and the

Company also consider cash flows for potential subrogation cash flows and other recoveries

arising from both incurred and future claims.

Insurance acquisition cash flows are the allocated insurance acquisition cash flows attributable

to the portfolio to which the insurance contract belongs.

Cash flows arising from costs incurred in the fulfilment of insurance contracts include claims

handling and settlement costs, costs that incur in providing contractual benefits paid in kind

rather than in cash, policy administration costs, such as costs of premium billing and handling

policy changes, and general overheads, both fixed and variable, that are directly attributable to

insurance contracts through allocation. Also included are investment costs in cases where the

investment return is allocated to the policyholder and any other costs specifically chargeable to

the policyholder under the terms of the contract.

Cash flows of the Group and the Company also include transaction-based taxes and payments

by the Group and the Company in a fiduciary capacity to meet tax obligations incurred by the

policyholder, and levies that arise directly from insurance contracts.

For non-life insurance, actual cash flows are estimated at the level of groups of contracts, with

the exception of costs that are allocated based on keys (allocation keys). Future cash flows are

estimated at the lowest level sufficient to permit the use of actuarial methods.

For life insurance, actual and future cash flows are estimated at the level of individual insurance

contracts, with the exception of actual expenses that are allocated to groups of contracts based

on keys.

Additional benefits to the basic insurance policy are considered as part of a single insurance

contract, and the expected cash flows arising from them are added to the expected cash flows

of the basic insurance contract.

All insurance acquisition cash flows incurred in the period are allocated to functional groups

(acquisition costs, claim handling expenses, management costs and other administrative costs)

and then, based on the keys, to groups of contracts.

208

Advance payments to agencies for underwriting commission are identified as an insurance

acquisition cash flow before the recognition of the related group of insurance contracts (i.e.

advance payments of acquisition costs). Such payments are treated as other receivables.

2.5.2.4

General measurement model for the valuation of insurance contracts

Measurement on initial recognition

A group of insurance contracts is measured on initial recognition as the total of the fulfilment

cash flows and the contractual service margin. The fulfilment cash flows are estimates of future

cash flows, appropriately discounted and adjusted for non-financial risk.

Determination of contract boundaries

The measurement of a group of insurance contracts includes all future cash flows within the

boundary of each insurance contract in the group. This ensures that estimates of future cash

flows are complete, unbiased, current and explicit.

A cash flow is within the boundary of an insurance contract if it arises from substantive rights

and obligations that exist during the reporting period in which the Group and the Company can

compel the policyholder to pay the premiums or in which the Group and the Company have a

substantive obligation to provide the policyholder with insurance contract services.

A substantive obligation to provide insurance contract services ends when the Group and the

Company have the opportunity to reassess the policyholder's (or the portfolio's) risks and, as a

result, to set a new price or level of benefits that reflects those risks. The reassessment of risks

does not take into account lapse and expense risks.

Some insurance contracts provide policyholders with an option to buy an annuity upon the

initially issued policies maturity. In such cases, the Group and the Company assess its practical

ability to reprice such insurance contracts in their entirety to determine if annuity-related cash

flows are within or outside of the insurance contract boundary. The Group and the Company do

not include expected cash flows of non-guaranteed annuity options in the value of an insurance

policy.

In the case of group term insurance contracts, the premium may change annually. Such

insurance contracts are treated as annual, which means that they are derecognised and then re-

recognised each year in accordance with the new terms.

Insurance contracts with direct participation features are within contract boundaries when there

is a substantive obligation to pay at a present or future date.

209

Use of discount rates

By using a discount rate, the estimates of future cash flows are adjusted to reflect the time value

of money and the financial risks to the extent that the financial risks are not included in the

estimates of future cash flows.

The choice of the discount rate is a matter of subjective judgement and is geared towards the

objective that the discount rate used reflects the characteristics of the cash flows arising from

the insurance contracts and liquidity risk.

The discount rate is determined as the risk-free interest rate plus the illiquidity premium 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. In addition to these, the volatility adjustment curve,

also published by EIOPA, is used. For non-EU countries, the volatility adjustment curve is based

on the spread between local government bonds and euro interest rate swaps.

For the life insurance class, an illiquidity test based on the calculation of illiquidity indicators is

carried out at least once a year at portfolio level. Based on this test, each insurance contract is

allocated on initial recognition to an appropriate illiquidity class (50%, 75% or 100% illiquidity)

in which it remains until derecognition.

For the non-life insurance portfolio, all liabilities are discounted using risk-free interest rates. The

exception is Zavarovalnica Triglav, where the risk-free interest rate curve with a volatility

adjustment published by EIOPA is applied to liabilities for claims payable as annuities.

Cash flows that vary based on the returns on underlying items are adjusted for the effect of this

variability using risk-insensitive measurement techniques and discounted using risk-free

interest rates adjusted for illiquidity.

The Group and the Company estimate the discount rate applicable to each group of insurance

contracts at initial recognition based on the recognised insurance contracts. In the subsequent

reporting period, when new insurance contracts are added to the group, the discount rate

applicable to the group at initial recognition is adjusted from the beginning of the reporting

period in which the new insurance contracts are added to the group.

Risk adjustment for non-financial risk

Risk adjustment for non-financial risk refers to the compensation set by the Group and the

Company because it bears uncertainty about the amount and timing of the cash flows that arises

from non-financial risk. It is calculated using separate methods for non-life and life insurance

contracts, taking into account the Group's and the Company's risk appetite.

Non-financial risks of life insurance are related to mortality, longevity, morbidity, lapse, expense,

mortality catastrophe and other risks arising from health insurance. The metric used to calculate

the risk adjustment for non-financial risk is the cost of capital to maturity of the existing

portfolio method, which is partly based on the Solvency II methodology.

210

For the non-life insurance portfolios, the risk adjustment for non-financial risk for liabilities 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 to be determined by the Group and the Company. The calculation

is performed at the level of homogeneous groups, taking into account their diversification.

The risk adjustment for the liability for remaining coverage of non-life insurance is derived from

the basic capital requirement for the relevant risks under the Solvency II standard formula,

reduced from 99.5% to a pre-specified confidence level which is the same as that used in the

calculation of the risk adjustment for the liability for incurred claims. The calculation also takes

into account portfolio diversification.

Contractual service margin

The contractual service margin is an integral part of the total carrying amount of liabilities for

the group of insurance contracts and represents the unearned profit that the Group and the

Company will recognise when they provide insurance contract services during the coverage

period.

The Group and the Company measure the contractual service margin on initial recognition at an

amount that, unless the group of insurance contracts is onerous, results in no income in profit

or loss arising from:

▪

the expected fulfilment cash flows for the group of insurance contracts;

▪

the amount of the derecognition of any asset for insurance acquisition cash flows, allocated

to the group of insurance contracts;

▪

any other asset or liability previously recognised for cash flows related to the group of

contracts;

▪

any cash flows arising from the contracts in the group at that date.

If the group of insurance contracts is onerous, the Group and the Company recognise the entire

loss on initial recognition. As a result, the carrying amount of the liability for a group of such

insurance contracts is equal to the fulfilment cash flows and the contractual service margin is

zero.

On initial recognition, the Group and the Company determine the coverage units for the group

of insurance contracts. The contractual service margin is then attributed to the group of

insurance contracts based on the coverage units provided in the period.

The Group and the Company allocate the acquired insurance contracts with claims in the

settlement phase to annual groups based on the expected return on insurance contracts at the

acquisition date. The Group and the Company use the consideration paid as a proxy for

premiums to calculate the contractual service margin at initial recognition. If, at initial

recognition, the insurance contracts acquired in a portfolio transfer are onerous, the excess of

the fulfilment cash flows over the consideration received is recognised in profit or loss. For

insurance contracts acquired in a business combination, the excess, representing the extent of

the onerous insurance contract, is recognised as part of goodwill.

211

Treatment of onerous contracts on initial recognition

An insurance contract is classified as onerous at the date of initial recognition if all cash flows

arising from the insurance contract in total are a net outflow. Such an insurance contract is

classified in a group of (onerous) insurance contracts separately from those groups of contracts

that are not onerous. The net outflow expected to arise from the group of onerous insurance

contracts is recognised as a loss in profit or loss on initial recognition. After the loss is recognised,

the carrying amount of the liability for the group of onerous insurance contracts is equal to the

expected fulfilment cash flows and the contractual service margin is zero.

Subsequent measurement

The carrying amount of a group of insurance contracts at the end of the reporting period is the

sum of the liability for remaining coverage (LRC) and the liability for incurred claims (LIC), where

the LRC is equal to the sum of the expected future fulfilment cash flows (that relate to the future

service) and the contractual service margin for that group of insurance contracts, and the liability

for incurred claims represents the cash flows that relate to the past service.

In the current period, the following is recognised in the statement of profit or loss or in the

statement of other comprehensive income:

▪

Income and expenses for the changes in the carrying amount of the liability for remaining

coverage:

▪

Insurance revenue for the reduction in the liability for remaining coverage because of

services provided in the period;

▪

Insurance service expenses for losses on groups of onerous contracts and reversals of

such losses;

▪

Insurance finance income or expenses from discounting (for the effect of the time value

of money and the effect of financial risk).

▪

Income and expenses for the changes in the carrying amount of the liability for incurred

claims:

▪

Insurance service expenses for the increase in the liability because of claims and

expenses incurred in the period;

▪

Insurance service expenses for any subsequent changes in fulfilment cash flows relating

to incurred claims and incurred expenses;

▪

Insurance finance income or expenses from discounting (for the effect of the time value

of money and the effect of financial risk).

Treatment of changes in expected cash flows

Changes in expected cash flows that relate to current or past service are recognised in profit or

loss.

Those changes are:

▪

the effect of the time value of money and the effect of financial risk (including the effect of

a change in the discount rate),

▪

changes in estimates of expected fulfilment cash flows relating to liabilities for incurred

claims;

▪

experience adjustments for insurance service expenses.

212

Changes in expected cash flows that relate to future service are reflected in the change in the

contractual service margin or in the loss component within the liability for remaining coverage.

Those changes are:

▪

experience adjustments arising from premiums received in the period that relate to future

service;

▪

changes in the estimate of the present value of future cash flows for the liability for

remaining coverage;

▪

differences between any investment component expected to become payable in the period

and the actual investment component that becomes payable in the period;

▪

differences between any loan to a policyholder expected to become repayable in the period

and the actual loan to a policyholder that becomes repayable in the period;

▪

changes in the risk adjustment for non-financial risk that relates to future service.

Changes affecting the contractual service margin

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 recognised in profit or loss because it relates

to the future service.

The change in the contractual service margin in the period is due to:

▪

the effect of the change in estimates of future fulfilment cash flows (as described above);

▪

the elimination of the contractual service margin into income;

▪

the effect of interest accreted on the contractual service margin;

▪

the effect of any new insurance contracts;

▪

the effect of any currency exchange differences on the carrying amount of the contractual

service margin.

The elimination of the contractual service margin into income depends on how the Group and

the Company define the number of coverage units. This is the quantity of coverage provided by

the contracts in the group of insurance contracts, which is determined by considering for each

insurance contract the quantity of the benefits provided under an insurance contract and its

expected coverage period.

The bases for determining the quantity of benefits provided is shown in the table below.

Insurance class	Insurance group	Basis
life insurance	whole life insurance	sum insured
life insurance	endowment life insurance	sum insured
life insurance	term life insurance	sum insured
life insurance	life insurance with a disability rider	sum insured
life insurance	additional riders to life insurance	sum insured
life insurance	annuity insurance	annual annuity
life insurance	unit-linked life insurance	an amount higher than the sum insure of the value of the fund
non-life insurance	insurance for construction and installation projects, project liability, construction guarantees, financial guarantees and credit insurance	sum insured and the passage of time

Interest on the contractual service margin is accounted for using (locked-in) discount rates

determined on initial recognition of insurance contracts.

213

For life insurance contracts, if contracts are subsequently added to the group, the discount rates

used are updated by calculating a weighted average of the discount rates over the entire

recognition period of the contracts. This is not the case for non-life insurance contracts.

For insurance contracts with direct participation features, the change in the contractual service

margin in the period is also affected by the change in the share of the fair value of the underlying

items.

Treatment of onerous insurance contracts on subsequent measurement

The Group and the Company determine the appropriate level at which reasonable and

supportable information is available to assess if insurance contracts are onerous at initial

recognition and if the contracts that are not onerous at initial recognition have no significant

possibility of becoming onerous subsequently. The Group and the Company use significant

judgements in determining at what level of granularity they have sufficient information to

conclude that all insurance contracts within a set will be in the same group. In the absence of

such information, the Group and the Company assess each insurance contract separately.

In the event that a group of insurance contracts becomes onerous on subsequent measurement,

the excess of expected cash outflows over the carrying amount of the contractual service margin

is recognised as a loss in the statement of profit or loss and, on the other hand, a loss component

of the liability for remaining coverage is established.

The subsequent changes in fulfilment cash flows of the liability for remaining coverage may:

▪

be systematically allocated between the loss component of the liability for remaining

coverage and the liability for remaining coverage, excluding the loss component;

▪

be allocated solely to the loss component of the liability for remaining coverage until that

component is reduced to zero.

2.5.2.5

Premium allocation approach in the valuation of insurance contracts

For a group of insurance contracts for which the coverage period of each contract in the group

does not exceed one year, the premium allocation approach, which is a simplified general model,

may be used to measure the group of insurance contracts.

The simplified approach is also be applied where the measurement of the liability for remaining

coverage using the simplified approach is reasonably expected not to differ materially from the

measurement under the general model.

If the premium allocation approach is used, the carrying amount of the liability for remaining

coverage on initial recognition is the amount of premiums received on initial recognition minus

any insurance acquisition cash flows and adjusted for any amount arising from the

derecognition of assets for acquisition costs in advance.

The carrying amount of a group of insurance contracts at the end of each reporting period is the

sum of:

▪

the liability for remaining coverage (LRC);

▪

the liability for incurred claims (LIC) that includes future cash flows that relate to past service.

214

The liability for remaining coverage in the current period:

▪

is increased by the premiums received in the period;

▪

is decreased by paid insurance acquisition cash flows;

▪

is increased by the amortisation of insurance acquisition cash flows recognised as an

expense in profit or loss;

▪

is decreased by expected premiums paid recognised as insurance revenue in profit or loss

because insurance services were provided;

▪

is decreased by any investment component paid or transferred to the liability for incurred

claims. Insurance acquisition cash flows are accrued in proportion to premium.

Liabilities for incurred claims are discounted.

The Group and the Company apply the premium allocation approach to most non-life insurance

products, with the exception of those with coverage of more than one year and those whose

risks are spread over time in a non-linear fashion.

Insurance contracts in the non-life insurance contract groups do not have significant financing

components, therefor the carrying amount of the liability for remaining coverage is not adjusted

for the time value of money and the effect of financial risk.

If, in subsequent measurement of a group of insurance contracts, it is determined that the

expected fulfilment cash flows related to the liability for remaining coverage exceed the carrying

amount of the liability for remaining coverage, a loss component is created among insurance

service expenses as part of the liability for remaining coverage. The loss component is amortised

(transferred to income) on a straight-line basis over the period of the insurance coverage or

reversed if it is determined that the group of insurance contracts is no longer onerous.

2.5.2.6

Derecognition of insurance contracts

An insurance contract is derecognised when it is extinguished (i.e. when the obligation specified

in the insurance contract expires) or is discharged or cancelled, if it is transferred to a third party

or if the terms of the insurance contract are substantially modified.

A substantial modification of insurance contract terms is a modification based on which:

▪

an insurance contract is no longer treated as an insurance contract under IFRS 17;

▪

an insurance contract without direct participation features is changed to a contract with

direct participation features, or vice versa;

▪

individual components of an insurance contract are no longer treated in the same way as

before the modification;

▪

contract boundaries change;

▪

an insurance contract would have to be allocated to a different group of contracts;

▪

the current approach to insurance contract measurement (BBA, PAA, VFA) is no longer

appropriate.

215

The derecognition of an insurance contract that is measured using the general model (BBA)

results in:

▪

the adjustment (derecognition) of fulfilment cash flows relating to the rights and obligations

that have been derecognised;

▪

the adjustment of the contractual service margin by the same amount, unless these changes

are attributable to a loss component;

▪

the adjustment of the number of coverage units for expected remaining services.

If an insurance contract is derecognised because it was transferred to a third party, the

contractual service margin is adjusted for the amount of the premium charged by the third party

(unless the insurance contract is onerous).

If an insurance contract is derecognised due to a significant modification of its terms, the

contractual service margin is adjusted for the amount of the premium that would have been

charged had the Group and the Company into a contract with equivalent terms as the new

contract at the date of the contract modification, less any insurance contract modification cost.

The derecognition of an insurance contract that is measured using the premium allocation

approach (PAA) is reflected in profit or loss as the difference between the derecognised portion

of the liability for remaining coverage and any other cash flows at the time of derecognition. If

an insurance contract is derecognised due to a significant modification of its terms, the

difference between the derecognised portion of the liability for remaining coverage and the

notional amount of the premium that would have been charged had the Group and the

Company into a contract with equivalent terms as the new contract at the date of the insurance

contract modification, less any contract modification cost, is disclosed in profit or loss.

2.5.2.7

Received reinsurance contracts

The measurement of groups of received reinsurance contracts follows the same guidelines as

the measurement of groups of underlying insurance contracts, taking into account the

specificities of the reinsurance business, as set out below.

The same segmentation rules apply to reinsurance contracts as to insurance contracts, except

that a reinsurance contract cannot be loss-making (there is either a net gain or a net loss on

initial recognition).

Reinsurance contracts may contain components that fall within the scope of another standard.

The separation of components is assessed using the criteria applicable to insurance contracts.

A group of received reinsurance contracts is recognised:

▪

at the beginning of the coverage period of the group of received reinsurance contracts;

▪

on initial recognition of the first insurance contract that is the subject of that reinsurance;

▪

when the Group and the Company recognise an onerous group of insurance contracts that

are the subject of reinsurance if the Group and the Company have previously entered into a

reinsurance contract from the group of reinsurance contracts.

In the case of a group of reinsurance contracts, cash flows are within the contract boundary of

the reinsurance contract if they arise from substantive rights and obligations that exist during

the reporting period in which the Group and the Company are required to pay amounts to, or

have the substantive right to receive services from the reinsurer.

216

The substantive right to receive services from the reinsurer ceases when the reinsurer is able to

reassess the risks transferred to it and to set a price or level of benefit that fully reflects those

reassessed risks, or when it has the right to cancel the reinsurance coverage.

The contract boundary of a reinsurance contract is determined by the date of the option to

terminate or renew the reinsurance contract, which is usually one year, or the date of the agreed

extinguishment of the reinsurance contract, and the coverage period of the underlying

insurance contracts is taken into account in determining the coverage period of each reinsurance

contract.

For a group of reinsurance contracts, the risk adjustment for non-financial risk represents the

amount of risk being transferred by the Group and the Company as the holders of the group of

reinsurance contracts to the issuer of those reinsurance contracts.

The measurement of reinsurance contracts must also take into account the effect of the risk of

non-performance by the reinsurer.

In addition to cash flows from premiums, claims, subrogations and commissions, the

measurement of a group of reinsurance contracts should include the cash flow representing the

effect of the risk of non-performance by the reinsurer.

When measuring reinsurance contracts, the contractual service margin is replaced by the net

gain or loss on the purchase of reinsurance. On initial recognition, the Group and the Company

measure the net gain/loss of reinsurance contracts at an amount equal to:

▪

the fulfilment cash flows;

▪

the amount derecognised at that date of any asset or liability previously recognised for cash

flows related to the group of reinsurance contracts held;

▪

any cash flows arising at that date;

▪

any income recognised in profit or loss as a result of the recognition of the reinsurance loss-

recovery component of the asset for remaining coverage.

If the net cost of purchasing reinsurance coverage relates to events that occurred before the

purchase of the group of reinsurance contracts, the Group and the Company recognise this cost

immediately as an expense in profit or loss.

The contractual service margin at the end of each reporting period for a group of reinsurance

contracts is determined as the contractual service margin at the beginning of the reporting

period, adjusted for:

▪

the effect of any new reinsurance contracts added to the group of reinsurance contracts;

▪

accrued interest on the carrying amount of the contractual service margin;

▪

income recognised in profit or loss as a result of the recognition of the reinsurance loss-

recovery component of the asset for remaining coverage;

▪

any reversals of the loss-recovery component to the extent that those reversals are not part

of the change in fulfilment cash flows of a group of reinsurance contracts;

▪

changes in fulfilment cash flows o the extent that the change relates to future service, unless

the change relates to a change in cash flows that does not adjust the contractual service

margin for the group of underlying insurance contracts, or the change results from the

application of a premium allocation approach to the group of underlying insurance

contracts;

217

▪

the effect of exchange rate differences on the contractual service margin;

▪

the amount recognised in profit or loss because of services received in the period, determined

by the allocation of the contractual service margin remaining at the end of the reporting

period (before any allocation) over the current and remaining coverage period of the group

of reinsurance contracts held.

Changes in fulfilment cash flows resulting from changes in the risk of non-performance by the

issuer of reinsurance contracts are not related to future service and do not adjust the contractual

service margin.

The Group and the Company adjust the contractual service margin of a group of reinsurance

contracts, and as a result recognise income when they recognise a loss on initial recognition of

an onerous group of insurance contracts underlying the reinsurance contracts or on addition of

onerous insurance contracts underlying the reinsurance contracts to the group (i.e. a loss-

recovery component of the asset for remaining coverage for a group of reinsurance contracts).

This adjustment is made only if the reinsurance contract has already been written at the time

the loss component of the liability for remaining coverage on the onerous insurance contracts is

recognised.

The amount of this adjustment is equal to the product of the recognised loss on the underlying

insurance contracts and the percentage of claims on the underlying insurance contracts

expected to be recovered from the group of reinsurance contracts held.

The Group and the Company establish or adjust a loss-recovery component of the asset for

remaining coverage for a group of reinsurance contracts depicting the recovery of losses

recognised in accordance with the above paragraphs. The loss-recovery component determines

the amounts that are recognised in profit or loss as reversals of recoveries of losses from

reinsurance contracts and are consequently excluded from the premiums paid to the reinsurer.

The loss-recovery component is adjusted to reflect changes in the loss component of an onerous

group of underlying insurance contracts. The carrying amount of the loss-recovery component

may not exceed the portion of the carrying amount of the loss component of the onerous group

of underlying insurance contracts that the Group and the Company expect to recover from the

group of reinsurance contracts.

Reinsurance contracts for which the net present value of future cash flows is positive is

recognised as an asset, and if that value is negative, the carrying amount of the reinsurance

contracts is recognised as a liability.

The Group and the Company may use the PAA to measure reinsurance contracts if:

▪

they reasonably expect that such simplification would result in a measurement of the

liability for remaining coverage for the group of reinsurance contracts that is not materially

different from the measurement under the BBA; or

▪

the coverage period of each reinsurance contract in the group of reinsurance contracts is one

year or less.

The criterion in the first indent above is not met if, at the inception of a group of reinsurance

contracts, the Group and the Company expect significant variability in the fulfilment cash flows

218

that would affect the measurement of the liability for remaining coverage during the period

before a claim is incurred.

If the PPA is used, the Group and the Company adjust the carrying amount of the asset for

remaining coverage for the amount of the established loss-recovery component rather than

adjusting the contractual service margin.

On initial recognition, the assets for remaining coverage of a group of reinsurance contracts are

equal to the amount of reinsurance premiums paid including fees and commissions. The assets

for remaining coverage are increased in the current reporting period by the reinsurance

premiums paid in the period and reduced by the transfer of reinsurance premiums to expenses

for the services provided in the current period. At the end of the reporting period, the carrying

amount of reinsurance contract assets is equal to:

▪

the assets for remaining coverage (LRC);

▪

incurred claims including fees and commissions and subrogations, which consist of expected

future cash flows arising from past service (LIC).

2.5.2.8

Insurance revenue

In the period in which insurance services are provided, the liability for remaining coverage for

the groups of insurance contracts is transferred to profit or loss.

For the insurance contracts measured under the general model, insurance revenue is

represented by:

▪

changes in the liability for remaining coverage arising from:

▪

claims and other insurance service expenses incurred in the current period at the

amounts expected at the beginning of the reporting period. These do not include

amounts related to loss components, acquisition costs, etc;

▪

the change to the risk adjustment for non-financial risk that excludes changes affecting

future service and amounts included in the loss component;

▪

the amounts of contractual service margin transferred to income as a result of services

provided in the period;

▪

the experience adjustment arising from premiums received in the period that relate to

past and current service.

▪

insurance revenue related to insurance acquisition cash flows by allocating the portion of

the premiums that relate to recovering those cash flows to each reporting period in a

systematic way on the basis of the passage of time. The same amount is recognised as

insurance service expenses.

For the insurance contracts measured using the premium allocation approach, income is

recognised proportionately to the elapsed period of insurance coverage.

219

2.5.2.9

Insurance service expenses

Insurance service expenses include:

▪

expenses for incurred claims and benefits, excluding investment components;

▪

other directly attributable insurance service expenses;

▪

amortisation of acquisition costs;

▪

changes that relate to past service (such as changes in expected cash flows relating to the

liability for incurred claims);

▪

changes that relate to future service (such as losses on onerous groups of insurance contracts

and reversals of such losses arising from the change in the loss component).

2.5.2.10

Reinsurance income and reinsurance service expenses

The Group and the Company report reinsurance income and reinsurance service expenses on a

net basis, as net income or net expenses, comprising:

▪

reinsurance service expenses (reinsurance commissions);

▪

recoveries of incurred claims;

▪

the effects of changes in credit risk related to reinsurers.

When using the premium allocation approach, part of reinsurance commissions are recognised

in accordance with the passage of time within the period of insurance coverage, and part are

allocated to other cash flows, such as bonuses and other forms of commissions.

Reinsurance commissions reduce reinsurance premiums and are recognised as reinsurance

service expenses.

2.5.2.11

Financial effects of insurance operations

Changes in the carrying amount of groups of insurance contracts arising from the effects of the

time value of money and financial risk (discounting effects) are recognised as insurance finance

income and expenses.

For insurance contracts measured under the general model, the largest share of insurance

finance income and expenses is composed of:

▪

interest on expected future cash flows and the contractual service margin;

▪

the effects of changes in interest rates and other financial assumptions;

▪

currency exchange differences.

For insurance contracts measured under the variable fee approach (VFA), the largest share of

insurance finance income and expenses is composed of:

▪

the change in the fair value of the underlying assets;

▪

the effects of interest, changes in interest rates and changes in other financial assumptions

on expected future cash flows that do not depend on returns on the underlying assets.

220

For insurance contracts measured under the premium allocation approach (PAA), the largest

share of insurance finance income and expenses is composed of:

▪

interest on the liability for incurred claims;

▪

the effects of changes in interest rates and other financial assumptions.

The effect of changes in the risk adjustment for non-financial risk, which is recognised in profit

or loss, is recognised in full in insurance revenue or insurance service expenses.

For most Group's and Company's portfolios, in order to reduce accounting mismatches, the

financial effects of insurance operations are disclosed in other comprehensive income, as are the

effects of most Group's and Company's investment portfolios. Only the effects of insurance

contracts with direct participation features, most of whose underlying assets are also measured

at fair value through profit or loss, are recognised in profit or loss.

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 instruments

At initial recognition, financial instruments 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 instrument. This does not apply to financial instruments

classified as instruments 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 instrument, except for loans and

deposits where the settlement date is used.

On initial recognition, a financial instrument is classified into one of the following measurement

categories:

▪

Financial instruments measured at amortised cost (AC);

▪

Financial instruments measured at fair value through other comprehensive income (FVOCI);

▪

financial instruments measured at fair value through profit or loss (FVTPL).

The classification of a financial investment into a particular category takes into account the

Group's and the Company's business model for managing assets and the contractual cash flow

characteristics of each financial investment.

Financial instruments measured at amortised cost

A financial instrument may be measured at amortised cost if both of the following conditions

are met:

▪

the financial instrument is held within a business model whose objective is to hold financial

instruments in order to collect contractual cash flows;

▪

the contractual cash flows are solely payments of principal and interest on the principal

amount outstanding.

221

After initial recognition, the instrument is measured at amortised cost using the effective

interest method and is subject to impairment. Interest income, foreign exchange gains or losses

and impairments are recognised in profit or loss. Gains and losses determined on derecognition

are also recognised in profit or loss.

Financial instruments measured at fair value through other comprehensive income

The category of financial instruments measured at fair value through other comprehensive

income includes debt securities that meet the following conditions and are not classified in one

of the other categories:

▪

the debt security is held within a business model whose objective is achieved by both

collecting contractual cash flows and selling;

▪

the contractual cash flows are solely payments of principal and interest on the principal

amount outstanding.

Equity securities not held for trading and, on initial recognition, designated irrevocably as

measured at fair value through other comprehensive income are also measured at fair value

through other comprehensive income. These are primarily investments that are closely linked

with the Group's and the Company's business activity in the long term or are participating

interests in companies with a solid dividend yield and an expected long-term positive growth

impact. The purpose of holding such financial instruments is to collect dividend cash flows.

After initial recognition, a financial instrument is measured at fair value, without deducting

transaction costs that may arise on sale or other disposal of the instrument. If a financial

instrument is not listed on a stock exchange, the fair value is measured based on recent

transaction prices if the market situation has not changed significantly since the last transaction,

or using the discounted cash flow valuation model. Equity instruments not quoted in an active

market and for which the fair value cannot be reliably measured are measured according to the

valuation model.

Interest income calculated using the effective interest rate, dividend income, foreign exchange

gains and losses and expected credit losses are recognised in profit or loss. Other gains and losses

are recognised in other comprehensive income until the financial instrument is derecognised.

When these financial instruments are derecognised, the accumulated losses or gains previously

recognised in other comprehensive income are transferred to profit or loss or, in the case of

equity securities, to retained earnings.

Financial instruments measured at fair value through profit or loss

If the financial instrument is not measured at amortised cost or at fair value through other

comprehensive income, it is measured at fair value through profit or loss. This includes

instruments that do not pass the cash flow adequacy test, equity securities that do not qualify

for measurement at fair value through other comprehensive income and all financial

instruments in other business models that are managed on a fair value basis or are held for

trading.

Interest, dividend income, valuation effects and effects on derecognition of a financial

instrument are recognised in profit or loss in the current period.

222

Reclassification of financial instruments between levels

Financial investments are not reclassified after initial recognition. An exception to this rule is

permitted or required only when the Group and the Company change their business model

according to which financial investments are managed. In rare cases, reclassification is applied

prospectively from the reclassification date, with the reclassification date defined as the first day

of the reporting period following the change in the business model.

Business model

The Group and the Company manage groups of financial investments to achieve their business

objectives, which are defined by their business model. It does therefore not depend on the

management's intention for an individual financial instrument, but on a higher level of

aggregation. The Group and the Company defined the purpose of the business model on the

basis of:

▪

the policies and objectives for the portfolio of financial instruments and the implementation

of these policies in practice;

▪

how the performance of the business model and the financial instruments held within that

business model are evaluated and reported;

▪

the risks that affect the performance of the business model and the way in which these risks

are managed;

▪

past data on the frequency, volume and timing of sales in prior periods in comparable

business models or the expected frequency, value and timing of sales.

The assessment of the business model is based on reasonably expected scenarios, excluding

worst case and stress case scenarios.

The Group and the Company manage their financial investments within the following business

models:

▪

holding the financial instruments to collect contractual cash flows;

▪

holding the financial instruments both to collect contractual cash flows and to sell financial

assets;

▪

holding the financial instruments to sell them.

Financial instruments that are held within a business model whose objective is to hold

instruments in order to collect contractual cash flows are managed to realise cash flows by

collecting contractual payments over the life of the instrument. As a rule, financial instruments

are held to maturity, but sales related to an increase in the issuer's credit risk or the

concentration of this risk are also permitted in this business model. Sales close to the final

maturity of a security or sales to meet liquidity needs in a stress case scenario are also permitted.

Other sales are also consistent with this business model if they are insignificant in value (both

individually and in aggregate) or if they are infrequent (even if significant in value). According to

this business model, the Group and the Company manage:

▪

loans and deposits to manage known short-term liquidity needs;

▪

sets of debt securities whose stable yield, recognised in profit or loss, reduces the financial

market-related opposite impact of insurance liabilities.

223

The purpose of financial instruments managed in accordance with a business model whose

objective is achieved both through the collection of contractual cash flows and the sale of

financial instruments, is primarily to match the duration of assets with the duration of liabilities

that those assets are funding, to manage long-term liquidity needs and to achieve a target

interest yield or trading yield.

Under other business models, financial instruments are managed with the objective of

generating cash flows and yield solely through the sale of instruments. Buying and selling

decisions are made based on fair values. Under this business model, portfolios of financial

instruments are also managed to cover those insurance liabilities for which valuation effects are

recognised in profit or loss.

The solely payments of principal and interest test (the SPPI test)

Only instruments whose contractual cash flows meet the SPPI test, i.e. they are solely payments

of principal and interest on the principal amount outstanding (SPPI), may be classified as

financial instruments measured at amortised cost (AC) or fair value through other

comprehensive income (FVOCI).

Principal is the fair value of the financial instrument at initial recognition less subsequent

changes, e.g. due to repayment. Interest is defined as consideration for the time value of money,

for the credit risk associated with the principal amount outstanding and for other basic lending

risks and costs (liquidity risk, administrative costs) as well as a profit margin.

In assessing whether the contractual cash flows meet the SPPI criterion, the Group and the

Company assess the contractual characteristics of a financial investment. This includes the

assessment whether a financial instrument contains the contractual terms that may change the

timing and amount of contractual cash flows in a way that this criterion would no longer be

fulfilled. The following is taken into account:

▪

contingent events that could change the timing and amount of contractual cash flows;

▪

the option of prepayment or extending the term;

▪

the facts that limit the payment of cash flows of particular assets (e.g. subordination of

payments); and

▪

the features that modify the concept of the time value of money (e.g. periodic interest rate

adjustments).

The Group and the Company carry out the SPPI test as part of their regular investment

procedure.

2.5.3.2

Receivables

Receivables from insurance and reinsurance operations are taken into account in the calculation

of insurance and reinsurance contract assets and liabilities in the form of cash flows and, as such,

are not recognised directly in the statement of financial position of the Group and the Company.

Other

receivables

relate

non-attributable

receivables

from

insurance

operations,

overpayments and prepayments, other operating receivables and receivables from financing.

224

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

In accordance with IFRS 9, the Group and the Company recognise credit losses that are expected

to be incurred in the future.

Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value

of all cash shortfalls) over the 12-month period after the reporting date (Stage 1) or over the

expected life of a financial instrument. A credit loss is the difference between discounted

contractual cash flows and discounted expected cash flows using the effective interest rate as

the discount factor.

A loss allowance for expected credit losses is recognised for all debt financial assets not

measured at fair value through profit or loss.

Expected credit losses on the financial assets are assessed at least once a year, as at the last day

of the reporting period.

The expected credit loss model is based on the moving of financial assets between three groups

or stages. Typically, financial assets move from Stage 1 to Stage 3, but it is also possible to move

back to the previous stage.

At initial recognition, all financial assets, other than those that are already credit-impaired at

initial recognition, are classified in Stage 1, for which 12-month expected credit losses are

established. 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 one year. In Stage 1, interest

income is recognised using the effective interest rate applied to the total gross value of the

financial asset (without reduction for any loss allowance).

On subsequent measurement, financial assets

are included in Stage 2 if, after initial recognition,

there has been a significant increase in credit risk but the assets do not yet show objective

evidence of impairment. Lifetime expected credit losses are established for Stage 2 financial

assets. Lifetime expected credit losses are expected credit losses that result from all possible

default events during the lifetime of the financial asset. Based on a qualitative analysis, i.e. a

comparison of the credit rating as at the reporting date and the credit rating at initial

recognition, the Group and the Company determine whether the risk of default has increased

significantly since initial recognition and requests a move from initial Stage 1 to the lower Stage

2. A downgrade to Stage 2 is required when the credit rating deteriorates by three notches with

a simultaneous downgrade to sub-investment grade. For initial ratings (rating at the date of

recognition) of Baa3 and below, a two-notch deterioration is sufficient to move to Stage 2, and

for initial ratings of B2 and below, a one-notch downgrade is required to move to Stage 2. In

Stage 2, interest income is recognised using the effective interest rate applied to the total gross

value of the financial asset (without reduction for any loss allowance).

225

Financial assets that are not purchased or originated credit-impaired financial assets and that

show objective evidence of impairment at the reporting date are classified in Stage 3. Lifetime

expected credit losses are established for these financial assets. Interest income of Stage 3

financial assets is recognised using the effective interest rate applied to the net value of the

financial asset (taking into account any loss allowance)

The general three-step impairment model does not apply to financial assets that are already

credit-impaired at initial recognition (purchased or originated credit-impaired (POCI) financial

assets). For these assets, lifetime credit losses are already established at initial recognition,

which are included in the estimate of future cash flows when calculating the effective interest

rate and therefore do not have an immediate impact on profit or loss. Interest income of these

instruments is accrued on the net value of the instrument. Any subsequent changes in expected

credit losses are recognised in profit or loss as impairment or reversal of impairment,

respectively.

The Group and the Company apply a single definition of a default. A financial asset is considered

credit-impaired upon:

▪

default in the payment of coupon interest or principal due to inability to pay;

▪

the commencement of insolvency proceedings.

Measurement of expected credit losses

Expected credit losses are equal to the product of the expected probability of default (PD), the

expected loss given default (LGD) and the expected exposure at default (EAD). The risk

parameters (PD and LGD) from external sources are used to calculate expected credit losses.

Probability of default (PD) is determined based on statistical methods or a combination of

statistical methods and a structural model. As such, it is calibrated in time; it represents the

current situation (point-in-time) and contains the most likely future economic circumstances,

according to financial market participants. In the event that information on probability of

default is not available from external sources, this parameter is derived from internal models;

the parameters of a comparable business entity are used or, on the basis of the consolidated

financial statements, the Altman Z-Score is converted into a credit rating.

To determine the expected loss given default (LGD), the guidelines of the CRR (Regulation (EU)

No 575/2013 of the European Parliament and of the Council of 26 June 2013, Article 161) are

followed for the categories of exposures to central government units, central banks, regional

and/or local government institutions and public sector entities for which information is not

available from external sources. For the categories of exposures to companies, an own estimate

of loss is used, ranging between 63% and 65%.

2.5.4

Income and expenses from financial investments

Income from financial investments comprises interest income, dividends, changes in fair value,

gains on disposal and other financial income. Expenses from financial investments comprise

expenses from impairment of investments, losses on disposal and other expenses from financial

investments.

226

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.

2.5.5

Non-financial assets

Non-financial assets include investments in subsidiaries, associates and joint ventures,

intangible assets, property, plant and equipment, investment property, right-of-use assets, non-

current assets held for sale and other assets. The accounting policies for each of these assets are

presented below.

2.5.5.1

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.

2.5.5.2

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 Group and the Company together

with a contract partner based on a contractual agreement.

227

Investments in equity instruments of associates and joint ventures are accounted for in the

separate and consolidated financial statements under 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 and the Company'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, impairment

up to the level of the recoverable amount is carried out.

The corresponding share of an associate's and joint venture's profit or loss is recognised in profit

or loss. The corresponding effects included in other comprehensive income of an associate or

joint venture are recognised in other comprehensive income.

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.

2.5.5.3

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 net amount of the acquiree's assets acquired

and liabilities assumed. 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. After initial

recognition, goodwill is measured at cost less accumulated impairment losses.

2.5.5.4

Intangible assets

Intangible assets include goodwill and other intangible assets.

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 Group and the Company 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

228

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.

2.5.5.5

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 2.5.11.

2.5.5.6

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 2.5.6.5.

All income from investment property relates exclusively to leases and is disclosed in profit or loss

under other operating income. Expenses from investment property relate to depreciation and

229

maintenance costs of investment property and are disclosed under other operating 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 2.5.11.

2.5.5.7

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.

230

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.

2.5.5.8

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.

2.5.5.9

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.

231

For subsequent measurement, inventories are disclosed at the lower of cost less direct costs of

procurement or net realisable value.

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.

2.5.5.10

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;

232

▪

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 profit or loss 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.

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.

233

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

profit or loss.

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.

2.5.6

Equity and liabilities

2.5.6.1

Equity

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

234

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.

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 Group or the

Company.

The Group and the Company do not have dilutive potential ordinary shares, thus the basic and

diluted earnings per share are the same.

2.5.6.2

Subordinated liabilities

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.

2.5.6.3

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.

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.

2.5.6.4

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.

235

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.

2.5.7

Government grants and government assistance

Funds received directly or indirectly by the Group and the 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 the Group and the

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 Group and the Company

recognise in profit or loss on a straight-line 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.

2.5.8

Operating expenses

Gross operating expenses are recognised on an accrual basis as historical costs by nature. They

are subsequently segregated during the accounting process into costs attributable to insurance

contracts and costs not attributable to insurance contracts. Under the IFRS 17 functional

groups, attributable costs are divided into acquisition costs, claim handling costs, management

costs and other administrative costs and, as such, are attributed to the individual groups of

insurance contracts.

2.5.9

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

236

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.

2.5.10

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.

237

Financial assets classified as financial assets at fair value through profit or loss and those at fair

value through other comprehensive income are measured at fair value. However, for financial

assets measured at amortised cost, 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 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.

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.

238

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.

239

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

Income approach

g (growth rate during the

constant growth period)

2–3.1%

Level 3

Discount rate

5.8–15.4%

Lack

marketability

and

control discount

0–50.3%

Cost approach

Value of real property and

participating interests

Market approach

MVIC/EBITDA, P/B

Equity investments 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

development land)

Capitalisation rate

7.5–15%

Level 3

Market prices of comparable

real property

Investment property

The fair value of assets and liabilities is shown in section 2.5.10.

240

2.6

Impacts of the transition to new accounting standards and impacts of changes in

accounting policies

2.6.1

Impacts of the transition as at 1 January 2022

The impacts of the transition to new accounting standards and the impacts of changes in

accounting policies on the Group's and the Company's equity as at 1 January 2022 are presented

below. The audited items of the statement of financial position as at 31 December 2021 were

appropriately reclassified to reflect the new structure of the statement of financial position.

						in EUR
Triglav Group	31 December 2021 (audited)	Impacts of the transition to IFRS 17	Impacts of the transition to IFRS 9	Reclassification to financial contracts	Other reclassifications	1 January 2022
ASSETS	4,374,353,624	-243,766,638	-5,357,418	348,746	-151,523	4,125,426,791
Property, plant and equipment	108,655,212	0	0	0	1,475,834	110,131,046
Investment property	75,110,973	0	0	0	-51,383	75,059,590
Right of use assets	10,933,109	0	0	0	-151,523	10,781,586
Intangible assets and goodwill	107,184,415	-52,930,208	0	0	-5,921	54,248,286
Deferred tax assets	927,425	-283,392	-417,585	0	0	226,448
Investments in subsidiaries	0	0	0	0	0	0
Investments in associates and joint ventures	36,031,346	0	0	0	0	36,031,346
Financial investments	3,543,977,278	15,915	-1,622,348	-623,694,401	-1,518,910	2,917,157,534
Financial contract assets	0	0	0	643,548,868	0	643,548,868
Insurance contract assets	159,365,204	-142,389,447	0	-246	0	16,975,511
Reinsurance contract assets	201,451,755	-38,868,927	0	0	0	162,582,828
Non-current assets held for sale	3,812,044	0	0	0	2,405	3,814,449
Current corporate income tax assets	4,127,384	120,358	-3,897,489	0	0	350,253
Other receivables	35,612,821	-7,878,483	0	306,342	77,871	28,118,551
Cash and cash equivalents	82,321,630	0	520,131	-19,813,191	0	63,028,570
Other assets	4,843,028	-1,552,454	59,873	1,374	20,104	3,371,925
EQUITY AND LIABILITIES	4,374,353,621	-243,766,638	-5,357,421	348,746	-151,523	4,125,426,785
Controlling interests	930,511,225	106,133,242	-502,333	-1,315,101	0	1,034,827,033
Share capital	73,701,392	0	0	0	0	73,701,392
Share premium	50,283,747	0	0	0	0	50,283,747
Reserves from profit	421,633,959	-90	90	0	0	421,633,959
Accumulated other comprehensive income	77,834,278	-24,832,230	-40,589,970	-14,114	0	12,397,964
Other reserves	0	0	0	0	0	0
Retained profit/loss from previous years	310,028,842	130,984,319	40,206,984	-1,300,987	0	479,919,158
Currency translation differences	-2,970,993	-18,756	-119,437	0	0	-3,109,186
Non-controlling interests	2,475,645	-139,107	0	0	0	2,336,538
Subordinated liabilities	49,471,831	0	419,635	0	0	49,891,466
Deferred tax liabilities	9,377,034	22,783,082	-5,348,364	-303,890	0	26,507,862
Financial contract liabilities	0	0	0	643,548,868	0	643,548,868
Insurance contract liabilities	3,224,854,813	-334,594,935	0	-645,487,660	0	2,244,772,218
Reinsurance contract liabilities	34,061,539	-31,911,519	0	0	0	2,150,020
Provisions	20,184,669	1,986,047	0	4,192,088	0	26,362,804
Lease liabilities	11,274,806	0	0	0	-126,303	11,148,503
Other financial liabilities	2,237,060	-21,545	39,616	0	0	2,255,131
Non-current liabilities held for sale	0	0	0	0	0	0
Current corporate income tax liabilities	2,649,636	-35,279	552,768	0	0	3,167,125
Other liabilities	87,255,363	-7,966,624	-518,743	-285,559	-25,220	78,459,217

241

							in EUR
Zavarovalnica Triglav	31 December 2021 (audited)	Impacts of the transition to IFRS 17	Impacts of the transition to IFRS 9	Impacts of the change in accounting policy – equity method	Reclassification to financial contracts	Other reclassifications	1 January 2022
ASSETS	3,118,944,086	-112,006,466	-312,844	-6,102,619	0	0	3,000,522,157
Property, plant and equipment	65,143,307	0	0	0	0	1,615,993	66,759,300
Investment property	43,840,055	0	0	0	0	0	43,840,055
Right of use assets	4,548,297	0	0	0	0	0	4,548,297
Intangible assets and goodwill	67,022,026	-35,045,848	0	0	0	0	31,976,178
Investments in subsidiaries	131,924,683	0	0	0	0	0	131,924,683
Investments in associates and joint ventures	41,693,996	0	0	-6,102,619	0	0	35,591,377
Financial investments	2,508,082,035	15,915	-184,184	0	-245,334,872	-1,744,653	2,260,834,241
Financial contract assets	0	0	0	0	249,789,207	0	249,789,207
Insurance contract assets	79,278,048	-64,091,699	0	0	0	0	15,186,349
Reinsurance contract assets	143,682,627	-7,131,688	0	0	0	0	136,550,939
Current corporate income tax assets	564,166	0	0	0	0	0	564,166
Other receivables	17,738,595	-5,849,816	-128,660	0	0	128,660	11,888,779
Cash and cash equivalents	13,912,991	0	0	0	-4,454,335	0	9,458,656
Other assets	1,513,260	96,670	0	0	0	0	1,609,930
EQUITY AND LIABILITIES	3,118,944,094	-112,006,466	-312,844	-6,102,619	0	0	3,000,522,165
Controlling interests	675,221,932	101,810,028	-117,576	-4,943,121	-1,315,102	0	770,656,161
Share capital	73,701,392	0	0	0	0	0	73,701,392
Share premium	53,412,885	0	0	0	0	0	53,412,885
Reserves from profit	404,562,643	0	0	0	0	0	404,562,643
Accumulated other comprehensive income	55,884,633	-19,488,817	-16,569,100	-8,168,764	0	0	11,657,952
Retained profit/loss from previous years	87,660,379	121,298,845	16,451,524	3,225,643	-1,315,102	0	227,321,289
Subordinated liabilities	49,471,831	0	419,635	0	0	0	49,891,466
Deferred tax liabilities	4,212,733	21,684,389	-637,001	-1,159,498	-303,890	0	23,796,733
Financial contract liabilities	0	0	0	0	249,789,207	0	249,789,207
Insurance contract liabilities	2,295,292,509	-214,815,395	0	0	-249,789,207	0	1,830,687,907
Reinsurance contract liabilities	18,526,653	-18,524,823	0	0	0	0	1,830
Provisions	13,201,285	0	0	0	1,618,991	0	14,820,276
Lease liabilities	4,643,844	0	0	0	0	0	4,643,844
Other financial liabilities	1,668,488	0	22,098	0	0	0	1,690,586
Other liabilities	56,704,811	-2,160,665	0	0	0	0	54,544,146

Effects of changes on equity

The effects of changes in the valuation of insurance contracts and financial assets and the effects

of a change in accounting policy were recognised in equity as at 1 January 2022 as follows:

▪

Triglav Group: an increase in retained earnings of EUR 169,890,316 and a decrease in

accumulated other comprehensive income of EUR 65,436,314, resulting in a net increase in

equity of EUR 104,454,002;

▪

Zavarovalnica Triglav: an increase in retained earnings of EUR 139,660,910 and a decrease

in accumulated other comprehensive income of EUR 44,226,681, resulting in a net increase

in equity of EUR 95,434,229.

The increase in retained earnings was predominantly due to a decrease in insurance contract

liabilities. IFRS 17 requires that the best estimate be used in their measurement, whereas in the

application of IFRS 4 the safety principle was taken into account when creating insurance

technical provisions.

The decrease in accumulated other comprehensive income was due to the recognition of the

effects of discounting insurance contracts. In accordance with IFRS 17, the effects of a change in

the interest rate on the discounting of cash flows from insurance contracts are recognised in

other comprehensive income in order to reduce the accounting mismatch with the

measurement effects of financial assets recognised in other comprehensive income.

242

The methods used in the transition to IFRS 17

On transition to IFRS 17, valuations were performed for all insurance contracts issued before the

date of initial application of this standard and still in force at that date, i.e. 1 January 2022. The

standard requires a full retrospective approach to be used for valuation. This approach was

applied to the valuation of all short-term insurance contracts and those long-term insurance

contracts issued from 2016.

Where an insurer does not have complete data, the standard allows the use of a modified

approach with some simplifications, without the need to reconstruct data that are not available.

Using this approach, long-term insurance contract liabilities under contracts entered into

between 2007 and 2015 were restated as at 1 January 2022.

For long-term insurance contracts entered into before 2007, the fair value approach was applied.

The standard allows this approach if both the full approach and the modified retrospective

approach are not economically justifiable due to obtaining data.

				in EUR
Triglav Group
Contractual service margin	Contracts under the modified retrospective approach	Contracts under the fair value approach	Contracts under the full retrospective approach	TOTAL
As at 1 January 2022	51,364,841	0	106,640,920	158,005,761
Changes that relate to current service
CSM recognised in profit or loss to reflect the transfer of services	-9,542,168	-902,931	-22,194,251	-32,639,350
Changes that relate to future service
Changes in estimates that adjust the CSM	-48,965	-1,096,080	-3,054,665	-4,199,710
Effects of contracts for which initial recognition was carried out in the period	0	0	37,705,684	37,705,684
Insurance service result	-9,591,133	-1,999,011	12,456,768	866,624
Net insurance finance income/expenses	3,146,609	11,104,873	13,307,419	27,558,901
Effect of exchange rate differences
Total changes in other comprehensive income	-6,444,524	9,105,862	25,764,187	28,436,287
As at 31 December 2022	44,920,317	9,105,862	132,405,107	186,431,286
Changes that relate to current service
CSM recognised in profit or loss to reflect the transfer of services	-8,885,889	-1,977,797	-28,930,671	-39,794,357
Changes that relate to future service
Changes in estimates that adjust the CSM	9,472,679	2,986,319	39,236,069	51,695,067
Effects of contracts for which initial recognition was carried out in the period	0	0	42,344,259	42,344,259
Insurance service result	586,790	1,008,522	52,649,657	54,244,969
Net insurance finance income/expenses	244,817	870,190	-3,344,377	-2,229,370
Total changes in other comprehensive income	831,607	1,878,712	49,305,280	52,015,599
As at 31 December 2023	45,751,924	10,984,574	181,710,387	238,446,885

243

				in EUR
Zavarovalnica Triglav
Contractual service margin	Contracts under the modified retrospective approach	Contracts under the fair value approach	Contracts under the full retrospective approach	TOTAL
As at 1 January 2022	51,364,841	0	98,379,697	149,744,537
Changes that relate to current service
CSM recognised in profit or loss to reflect the transfer of services	-9,542,168	-760,598	-19,260,114	-29,562,880
Changes that relate to future service
Changes in estimates that adjust the CSM	-48,965	-843,395	-2,614,196	-3,506,555
Effects of contracts for which initial recognition was carried out in the period	0	0	33,340,793	33,340,793
Insurance service result	-9,591,132	-1,603,993	11,466,483	271,357
Net insurance finance income/expenses	3,146,610	10,350,728	12,131,221	25,628,559
Effect of exchange rate differences	0	0	0	0
Total changes in other comprehensive income	-6,444,523	8,746,735	23,597,704	25,899,916
As at 31 December 2022	44,920,318	8,746,735	121,977,401	175,644,454
Changes that relate to current service
CSM recognised in profit or loss to reflect the transfer of services	-8,885,888	-1,650,550	-25,470,342	-36,006,780
Changes that relate to future service
Changes in estimates that adjust the CSM	9,472,680	1,950,510	43,644,722	55,067,911
Effects of contracts for which initial recognition was carried out in the period	0	0	32,658,078	32,658,078
Insurance service result	586,792	299,960	50,832,457	51,719,208
Net insurance finance income/expenses	244,818	694,315	-2,928,288	-1,989,155
Total changes in other comprehensive income	831,609	994,275	47,904,169	49,730,053
As at 31 December 2023	45,751,927	9,741,010	169,881,570	225,374,507

244

Impacts of the transition to IFRS 9

The transition to IFRS 9 on 1 January 2022 did not significantly affect the value of financial assets; however, it did affect the reclassification of the

Group's and the Company's financial instruments, as shown in the tables below.

										in EUR
Triglav Group
			Reclassification under IFRS 9 as at 1 Jan 2022			Remeasurement as at 1 Jan 2022		Value under IFRS 9 as at 1 Jan 2022
Classification of financial investments under IAS 39	Value under IAS 39 as at 31 Dec 2021	Reclassification	to FVTPL	to FVOCI	to AC	Revaluation	ECL	FVTPL	FVOCI	AC
HTM and L&R	231,033,030	-2,359,312	5,503,964	0	223,169,754	802,165	-1,622,348	5,952,000	0	222,389,210
FVTPL and FVTPL for trading	1,175,293,820	-623,666,083	551,627,738	0	0	0	0	551,627,650	1,959,630,084	0
AFS	2,137,650,428	0	178,014,857	1,959,635,571	0	0	0	177,558,590	0	0
Total	3,543,977,278	-626,025,394	735,146,559	1,959,635,571	223,169,754	802,165	-1,622,348	735,138,240	1,959,630,084	222,389,210

										in EUR
Zavarovalnica Triglav
			Reclassification under IFRS 9 as at 1 Jan 2022			Remeasurement as at 1 Jan 2022		Value under IFRS 9 as at 1 Jan 2022
Classification of financial investments under IAS 39	Value under IAS 39 as at 31 Dec 2021	Reclassification	to FVTPL	to FVOCI	to AC	Revaluation	ECL	FVTPL	FVOCI	AC
HTM and L&R	173,451,841	-1,697,486	5,991,639	0	165,762,716	-60,950	-184,184	5,952,000	0	165,556,736
FVTPL and FVTPL for trading	746,239,932	-245,306,210	500,933,722	0	0	0	0	500,933,722	0	0
AFS	1,588,390,263	0	130,247,315	1,458,142,948	0	0	0	130,247,315	1,458,144,468	0
Total	2,508,082,036	-247,003,696	637,172,676	1,458,142,948	165,762,716	-60,950	-184,184	637,133,037	1,458,144,468	165,556,736

245

Effects of the transition on the valuation of associates and joint ventures in the separate financial

statements of Zavarovalnica Triglav

Investments in associates and joint ventures in past periods were accounted for at fair value in

the Company's separate financial statements and under the equity method in the Group's

consolidated financial statements.

In order to make the disclosure of these investments in the financial statements of the Group

and the Company more comparable and therefore more relevant, the Company changed the

valuation method in the separate financial statements so that, also for the purpose of preparing

the separate financial statements, investments in associates and joint ventures are accounted

for using the equity method. The change in the accounting policy resulted in a decrease in the

value of these investments by EUR 6,102,619.

Reclassification to financial contracts

The transition to IFRS 17 led to a reassessment of underwriting and financial risks of pension

products in the accumulation (savings) phase (supplemental voluntary pension insurance). As a

result of the reassessment, these products no longer bear material underwriting risk and were

therefore reclassified from insurance to financial contracts upon the transition. They are

disclosed as financial contract assets and liabilities in the statement of financial position.

Financial contract assets also comprise cash, receivables and other assets directly related to

these contracts.

Other reclassifications

Other reclassifications mainly relate to the reclassification of works of art from financial

investments to property, plant and equipment. The change was made in order to more

accurately present the assets in the Group's and the Company's statement of financial position.

2.6.2

Effects of the transition in the 2022 statement of profit or loss

By transitioning to the new standards, differences in the net profit for 2022 of both the Group

and the Company were recognised compared to the 2022 financial statements that were

published in accordance with the previous accounting standards, IFRS 4 and IAS 39.

The Company generated a lower net profit compared to the published financial statements as a

result of the transition to the new accounting standards. The Company's net profit for 2022

under the previous standards amounted to EUR 120,472,078, while the net profit restated under

the new accounting policies was EUR 8,925,410. In total, the transition to the new accounting

policies resulted in a net profit lower by EUR 111,546,668 than that published for 2022 in

accordance with the previously valid standards.

The Group's net profit for 2022 under the previous standards amounted to EUR 110,216,676,

while the application of the new accounting policies resulted in a loss of EUR 6,972,434. In total,

the transition to the new accounting policies resulted in a net profit lower by EUR 117,189,110.

With regard to non-life insurance contracts, this effect arises from differences in the valuation

of claims provisions. In 2022, a transition was made towards the methods prescribed by IFRS 17

246

in the valuation of claims provisions, specifically adopting best estimates instead of conservative

estimates. As a result, there was a significant reduction in the amount of insurance technical

provisions.

With regard to life insurance contracts, a direct comparison of the net profit for a given year is

more difficult as the calculation methods under the two standards for long-term insurance

contracts are significantly different. Although the operating result over the lifetime of each

insurance contract would be the same under both standards, it may differ significantly from

period to period. This is the case in 2022, partly due to the effects of the transition and partly due

to the significant increase in interest rates, which had a different impact under the two

standards.

The difference in net profit or loss was also significantly affected by the classification of equity

securities into the group of financial assets measured through other comprehensive income and

other changes in the measurement of financial assets with the transition to IFRS 9.

Another significant difference in net profit or loss is the recognition of deferred taxes on the

difference in income tax expense resulting from lower profit before tax.

2.7

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 2023 are

presented in the disclosures of the items to which they relate.

247

Item in the financial

statements / content

Accounting judgement / estimate

Assumptions and sources of uncertainty

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.

Classification of insurance

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 issued is an insurance or financial

contract and the estimate of whether or not the

contracts issued meet the criteria for contracts with

direct participation features have 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.

Valuation of insurance

contracts

For the subsequent valuation of insurance contracts,

judgements on whether or not a simplified premium

allocation approach can be applied to the valuation

of the contracts issued are relevant.

Also important are judgements on whether the

individual components of contracts should be

separated (and valued separately), and judgements

about the appropriate level of aggregation of

contracts into portfolios.

The judgements needed to identify onerous contracts

are also important.

Assumptions about the term of the contract,

the appropriate level of aggregation of

contracts and assumptions relating to the

onerousness of contracts.

The calculation of

insurance/reinsurance

contract assets and

liabilities

Estimates of expected future cash flows and the

discount rates and illiquidity premiums used

significantly impact the calculation of assets and

liabilities.

Assumptions about the expected claims

development and claims ratios of non-life

insurance contracts.

Assumptions about the expected mortality,

policyholders' future behaviour and claims

ratios of additional life insurance riders.

Assumptions about expected movements in

interest rates and costs and about expected

inflation and economic growth.

The calculation of risk

adjustment

The judgement or selection of the most appropriate

techniques for estimating the risk adjustment for

non-financial risk and the estimation of the

adjustment are important.

Assumptions about the required risk

adjustment for non-financial risk in non-life

insurance contracts.

Financial assets

The assessment of the appropriateness of the

business model has a significant impact on the

subsequent valuation of financial assets.

Assumptions about the policy and objectives

related to financial assets portfolios.

Assumptions on how the performance of

each business model will be monitored.

Assumptions about the risks affecting the

performance of each business model.

Assumptions about the expected frequency,

volume and timing of sales of financial

assets of each business model.

Financial assets

The valuation of financial assets is also significantly

affected by the assessment whether the contractual

cash flows of a financial instrument are solely

repayments of principal and interest on the

outstanding principal amount (the SPPI test).

Assumptions about expected cash flows

related to an instrument.

Financial assets

An important judgement is the assessment of

impairment of financial assets, which involves the

selection of criteria for assessing whether credit risk

of an investment has changed significantly between

the time of its recognition and the time of valuation,

and the choice of the expected credit losses (ECL)

measurement model. The significant accounting

estimate relates to the calculation of the required

impairment at the balance sheet date.

Assumptions regarding expected cash flows.

The assumptions regarding the expected

probability of default (PD) and the expected

loss given default (LGD).

248

Financial assets

Financial assets are measured at fair value in the

financial statements or their fair value is disclosed.

The fair value of financial assets is a significant

accounting estimate when the fair values of assets

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

249

2.8

Risk management

The Group's risk management 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 Group to take appropriate and timely action and keep their risk

profile at the level defined in the risk appetite. The system is clear, transparent and well-

documented.

More information on the Group's risk management process is presented in the Business Report,

which is part of the Group's and the Company's Annual Report.

Risk exposure of the Group and the Company

Risk assessments by individual risk segment are based on market values for Solvency II purposes.

The Group 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 Group and 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 Group and the Company. The

same applies to financial contract assets and liabilities.

Risk exposures are monitored in the same way at Group and Company levels. The risk exposures

for both the Group and the Company are presented below, while the notes on risk management

are described at Group level.

2.8.1

Underwriting risks

The Group assumes underwriting risks by underwriting various types of insurance policies. Its

insurance portfolios are diverse in terms of products and so are their underwriting risks.

Insurance is divided into non-life insurance, which includes health insurance and reinsurance,

and life insurance, which includes pension annuity 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 do not depend on biometric factors.

Non-life insurance liabilities include all non-life insurance claims, including health insurance 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 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

annuity insurance. 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.

250

The basic principle of the insurance business is adequate risk equalisation. The Group and the

Company achieve this 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 the Group's underwriting risks.

The Group manages all identified risks 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 contract liabilities.

Underwriting risks are directly related to underwriting insurance policies, the amount of

premiums and insurance contract liabilities. 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 contract liabilities.

Underwriting risks are presented separately for non-life and life insurance.

2.8.1.1

Non-life underwriting risks

The standard Solvency II formula is used for non-life underwriting risk assessment. The

treatment under this formula differs from the IFRS treatment in terms of defining attributable

and non-attributable costs and of calculating the premium provision.

Non-life insurance underwriting at Group level creates risks for an undercharged premium in

relation to assumed risks, higher claims than liabilities 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.

▪

Risk of liabilities for incurred claims

arises when the actual realised claims deviate from the

expected claims. Liabilities for incurred claims are formed based on the estimate of expected

claims paid from valid non-life insurance contracts. This 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 risk of

liabilities for incurred claims is also influenced by the maturity of liabilities – the average

251

duration of claim settlements – for which liabilities were made. This risk is higher in

liabilities with long maturities than in liabilities with short maturities. 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. 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 risk of

liabilities for incurred claims is monitored by regularly checking the past amount of formed

liabilities in relation to realised claims and, based on the findings, by adapting the processes

of creating liabilities.

▪

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.

▪

Non-life insurance 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.

For non-life insurance, concentration risk is monitored. 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.

252

Exposure of non-life insurance contracts to premium risk

Net premium earned by non-life insurance segment

				in EUR
	Triglav Group		Zavarovalnica Triglav
	2023	2022	2023	2022
Health insurance	221,773,969	213,451,784	187,168	628,294
Income protection insurance	77,737,291	73,102,572	58,142,101	55,006,963
Motor vehicle liability insurance	181,146,680	163,096,807	100,595,568	91,514,325
Other motor vehicle insurance	171,824,106	151,000,086	137,279,638	120,593,818
Marine, aircraft and transport insurance	36,478,796	30,012,198	17,318,228	14,561,493
Fire and other damage to property insurance	233,539,195	212,611,602	109,099,495	102,949,142
General liability insurance	36,714,756	34,999,982	31,015,799	28,713,042
Credit and suretyship insurance	28,323,615	23,108,329	21,434,610	17,574,051
Legal expenses insurance	503,488	530,256	449,208	483,008
Assistance insurance	29,692,788	23,089,588	23,516,521	18,134,527
Financial loss insurance	3,812,697	2,569,488	2,391,247	1,383,030
Non-proportional health reinsurance	160,112	180,778	0	0
Non-proportional liability reinsurance	3,496,061	1,834,594	-43,392	-12,110
Non-proportional marine, aircraft and transport reinsurance	1,953,430	3,325,984	240,704	205,446
Non-proportional non-life reinsurance	22,605,748	25,228,880	2,182,752	5,551,584
TOTAL	1,049,762,730	958,142,926	503,809,648	457,286,611

The adequacy of written premium in relation to actual claims and costs arising from

underwritten insurance contracts is also measured with claims and combined ratios, the

movement and sensitivity of which are shown in the tables below.

				in EUR
	Triglav Group		Zavarovalnica Triglav
	2023	2022	2023	2022
Claims ratio	76.3%	74.6%	70.2%	73.3%
Expense ratio	25.3%	25.1%	29.0%	28.5%
Impact of 5% higher expense ratio on profit or loss	-4,401,017	-8,868,944	-2,804,668	-7,702,673
Impact of 5% lower expense ratio on profit or loss	1,410,584	4,220,987	792,841	3,667,383

253

Exposure of non-life insurance contracts to the risk of liabilities for incurred claims

Liabilities for incurred claims by non-life insurance segment*

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 December 2023	31 December 2022	31 December 2023	31 December 2022
Health insurance	19,944,079	16,698,280	1,945	6,637
Income protection insurance	33,558,484	33,615,001	27,945,722	28,413,226
Motor vehicle liability insurance	135,709,857	125,624,717	83,587,087	79,299,163
Other motor vehicle insurance	35,045,795	22,362,383	27,410,442	15,715,895
Marine, aircraft and transport insurance	35,846,486	26,713,088	19,635,840	16,792,738
Fire and other damage to property insurance	119,065,370	80,882,782	54,901,325	36,524,981
General liability insurance	54,290,226	42,394,370	47,717,372	36,025,823
Credit and suretyship insurance	2,683,595	4,022,500	1,188,365	115,113
Legal expenses insurance	106,747	105,746	105,476	79,321
Assistance insurance	4,555,262	3,002,118	3,242,310	2,159,662
Financial loss insurance	4,016,021	9,298,020	1,183,498	804,317
Non-proportional health reinsurance	134,892	71,052	0	0
Non-proportional liability reinsurance	1,472,733	1,071,985	25,051	38,406
Non-proportional marine, aircraft and transport reinsurance	1,983,027	2,194,674	0	0
Non-proportional non-life reinsurance	30,162,288	9,142,769	6,040,207	284,975
TOTAL	478,574,863	377,199,487	272,984,640	216,260,259

* The table shows the claims provisions under Solvency II valuation and also include liabilities payable as annuities. These provisions

are part of liabilities for incurred claims in accordance with IFRS 17.

In addition to exposures, the assessment of the risk of liabilities for incurred claims is affected

by volatility, which varies by insurance group. In 2023, an increase in the ratio of the exposure of

insurance segments with high volatility compared to the exposure of insurance segments with

low volatility, mainly as a result of extreme weather events in the reporting year. Insurance

segments with low volatility 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.

Exposure of non-life insurance contracts to catastrophe risk

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.

254

Geographical diversification of non-life insurance exposure of the Group and the Company by

written premium

				in EUR
	Triglav Group		Zavarovalnica Triglav
	2023	2022	2023	2022
Slovenia	989,115,289	940,289,206	642,741,545	630,924,681
Serbia	115,929,526	82,763,928	14,252,139	0
Croatia	106,062,592	105,156,975	7,288,979	1,490,593
Montenegro	45,285,103	40,263,778	3,961,948	0
Bosnia and Herzegovina	43,689,980	32,976,062	5,107,547	0
Germany	31,372,947	17,792,110	21,834,448	9,407,127
Poland	30,795,406	14,334,156	29,608,634	13,504,826
North Macedonia	30,146,357	28,061,259	2,877,798	0
Greece	29,925,349	17,666,412	28,256,416	16,210,392
Other	183,480,949	126,640,408	54,529,728	30,675,736
TOTAL	1,605,803,498	1,405,944,294	810,459,182	702,213,355

Segment diversification of non-life insurance exposure of the Group and the Company by written

premium

				in EUR
	Triglav Group		Triglav Group
	2023	2023	2023	2023
Health insurance	225,426,715	218,514,811	1,172,737	1,024,280
Income protection insurance	86,734,853	80,147,182	62,719,995	57,472,357
Motor vehicle liability insurance	275,324,337	220,735,227	149,688,381	118,439,403
Other motor vehicle insurance	222,616,881	186,403,637	168,312,309	141,285,272
Marine, aircraft and transport insurance	88,244,978	67,981,280	61,787,322	40,617,419
Fire and other damage to property insurance	454,265,931	406,357,760	226,434,466	213,975,034
General liability insurance	70,403,385	67,927,270	50,508,080	48,609,941
Credit and suretyship insurance	47,931,095	51,998,957	28,484,795	31,473,917
Legal expenses insurance	758,810	703,587	654,715	610,916
Assistance insurance	38,618,946	28,940,181	30,364,587	22,415,889
Financial loss insurance	11,035,960	10,150,387	4,356,555	3,664,110
Non-proportional health reinsurance	263,190	250,495	0	0
Non-proportional liability reinsurance	7,084,828	5,742,693	35,255	58,996
Non-proportional marine, aircraft and transport reinsurance	3,301,497	4,281,597	140,908	299,072
Non-proportional non-life reinsurance	73,792,094	55,809,229	25,799,077	22,266,748
TOTAL	1,605,803,498	1,405,944,294	810,459,182	702,213,355

In 2023, seven events were recorded that were defined as catastrophe events; six were

hailstorms and one was a flood storm. 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. In both 2022 and 2023, the Company

did not record any events from non-modelled perils.

255

Realised financial effect of catastrophe events at Zavarovalnica Triglav*

	Modelled perils		Non-modelled perils
	31 December 2023	31 December 2022	31 December 2023	31 December 2022
Gross financial impact (EUR million)	162.6	21.3	0.0	0.0
Net financial impact (EUR million)	56.4	16.6	0.0	0.0

* Also includes claims development and an estimate by the end of the year.

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 table below presents data as at 31 December 2023, as this are the most

recent modelled data.

Probable maximum loss (PML) for a 200-year return period by peril* at Zavarovalnica Triglav

Modelled peril (EUR million)	31 December 2022
Hail	102.8
Storm	40.3
Flood	55.2

* In the case of availability of several models, the average of modelled results was taken into account.

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.

The Group's largest retention amounts to EUR 12.1 million per peril, except for the nuclear peril.

For the latter, the Group's largest exposure amounts to EUR 15.5 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 29 years, and by a low or null

correlation with other contingent liabilities.

SASB: FN-IN-450a.1

256

Assumed capacity of nuclear perils for 2022 and 2023 at the Triglav Group

	Assumed capacity in EUR
	2023	2022
Zavarovalnica Triglav, d.d.	10,000,000	10,000,000
Pozavarovalnica Triglav Re, d.d.	4,500,000	3,000,000
Triglav Osiguranje, d.d., Zagreb	1,000,000	1,000,000
Total after the event	15,500,000	14,000,000

As part of the own risk and solvency assessment process, the impact of a 200-year flood in

Slovenia was reassessed in 2023, where according to stress scenario calculations the estimated

financial impact would amount to EUR 20 million (the stress scenario as at 30 September 2023).

Management of non-life underwriting risks in 2023

The non-life underwriting risk profile changed the most in 2023 due to extreme weather events

in Slovenia and the termination of supplemental health insurance. As a result of unfavourable

claims development, provision risks increased in 2023 and, although they decreased by the end

of the year, they remained high. Reinsurance protection is the most important element of the

Group's underwriting risk management and proved to be effective in 2023. The same prudence

was applied to the design of reinsurance protection for 2024.

At Group level, Zavarovalnica Triglav underwrites the bulk of non-life underwriting risks, while

Pozavarovalnica Triglav Re underwrites the majority of inward reinsurance underwriting risks.

Compared to 2022, the share of health insurance risks decreased significantly due to the

termination of supplemental health insurance contracts underwritten by Triglav, zdravstvena

zavarovalnica. Thus, as at 31 December 2023, the parent company held the highest proportion

of health insurance risks within the Group.

2.8.1.2

Life underwriting risks

The standard Solvency II formula is used for life underwriting risk assessment. The significant

differences between the valuation of life insurance liabilities for financial and solvency

reporting purposes are:

▪

supplemental voluntary pension insurance products in the accumulation phase are

classified as financial contracts for financial reporting purposes and are not subject to IFRS

17, whereas for solvency reporting purposes they are valued as part of life insurance;

▪

only attributable costs are taken into account in calculating the present value of future cash

flows for financial reporting purposes, whereas for solvency reporting purposes the total

cost of life insurance is taken into account;

▪

the solvency calculation of future cash flows takes into account contract boundaries for

complementary insurance in line with Solvency II.

Life underwriting risks also include pension annuity 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

257

in pension annuity 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 annuity insurance, include biometric and

business risks. Biometric risks arise from the uncertainty of biometric assumptions in the

calculation of the insurance liabilities, 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 liabilities calculation change

unfavourably, the premium and/or insurance contract liabilities 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 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 include:

▪

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 and the Company. The sums insured in

the event of death in these cases are high, while insurance contract liabilities are relatively

low.

▪

Longevity risk

at Group level stems mainly from pension annuity 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 Group and the Company face 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.

▪

Expense risk

is assumed by the Group and the Company in all life insurance products and

non-life annuities. The expenses included in the policy are determined at the time of

258

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.

▪

Life insurance 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 supplemental voluntary pension insurance policies during the saving

period.

Regulatory assessment of life underwriting risks

				in EUR
Triglav Group	31 December 2023		31 December 2022
	Amount	% of economic capital	Amount	% of economic capital
Mortality risk	12,058,728	1.3%	9,503,224	1.0%
Longevity risk	10,399,792	1.1%	9,401,208	1.0%
Disability and morbidity risk	351,233	0.0%	227,188	0.0%
Lapse risk	35,825,410	3.8%	32,033,952	3.4%
Expense risk	18,422,470	2.0%	18,687,866	2.0%
Audit risk	1,193,587	0.1%	1,151,479	0.1%
Life insurance catastrophe risk	7,143,657	0.8%	6,763,167	0.7%
Diversification	-12,520,918	-1.3%	-7,184,145	-0.8%
Regulatory assessment of life underwriting risks	72,873,959	7.7%	70,583,939	7.6%

				in EUR
Zavarovalnica Triglav	31 December 2023		31 December 2022
	Amount	% of economic capital	Amount	% of economic capital
Mortality risk	8,744,157	0.9%	6,117,596	0.7%
Longevity risk	10,316,914	1.1%	9,339,742	1.0%
Disability and morbidity risk	187,489	0.0%	138,073	0.0%
Lapse risk	29,470,421	3.1%	26,520,821	2.8%
Expense risk	16,352,885	1.7%	16,710,571	1.8%
Audit risk	1,148,870	0.1%	1,093,130	0.1%
Life insurance catastrophe risk	5,163,581	0.5%	4,610,073	0.5%
Diversification	-7,473,438	-0.8%	-2,074,014	-0.2%
Regulatory assessment of life underwriting risks	63,910,878	6.6%	62,455,992	6.7%

259

Sensitivity of net insurance contract liabilities of the Triglav Group to parameter changes

								in EUR
	Exposure		Sensitivity
31 December 2023	Present value of future cash flows	Contractual service margin	Impact on the present value of future cash flows	Impact on the contractual service margin	Impact on insurance contract assets and liabilities	Remainder of the contractual service margin	Impact on earnings before tax	Impact on other comprehensive income
Traditional life insurance	583,217,877	119,014,267
Lapse rate +50%			15,902,643	-13,002,380	2,900,263	106,011,887	983,548	-3,883,810
Costs +10%			9,506,879	-7,145,218	2,361,661	111,869,048	-3,303,443	941,782
Unit-linked insurance	-66,957,688	102,584,175
Lapse rate +50%			23,781,715	-22,391,143	1,390,572	80,193,032	-1,390,572	0
Costs +10%			8,596,779	-7,076,350	1,520,429	95,507,825	-1,520,429	0

								in EUR
	Exposure		Sensitivity
31 December 2022	Present value of future cash flows	Contractual service margin	Impact on the present value of future cash flows	Impact on the contractual service margin	Impact on insurance contract assets and liabilities	Remainder of the contractual service margin	Impact on earnings before tax	Impact on other comprehensi ve income
Traditional life insurance	607,820,796	97,954,578
Lapse rate +50%			10,713,179	-9,207,940	1,505,239	88,746,638	1,468,788	-2,974,026
Costs +10%			8,295,136	-6,025,006	2,270,130	91,929,572	-3,867,133	1,597,004
Unit-linked insurance	-41,763,845	72,183,684
Lapse rate +50%			16,426,849	-15,123,948	1,302,901	57,059,736	-1,302,901	0
Costs +10%			7,709,245	-5,802,451	1,906,794	66,381,233	-1,906,794	0

Sensitivity of net insurance contract liabilities of the Company to parameter changes

								in EUR
	Exposure		Sensitivity
31 December 2023	Present value of future cash flows	Contractual service margin	Impact on the present value of future cash flows	Impact on the contractual service margin	Impact on insurance contract assets and liabilities	Remainder of the contractual service margin	Impact on earnings before tax	Impact on other comprehensive income
Traditional life insurance	500,638,518	108,226,635
Lapse rate +50%			13,265,851	-12,017,879	1,247,973	96,208,757	1,352,770	-2,600,743
Costs +10%			8,014,595	-6,696,861	1,317,734	101,529,774	-2,309,570	991,835
Unit-linked insurance	-88,441,456	101,415,664
Lapse rate +50%			23,100,184	-21,887,660	1,212,524	79,528,004	-1,212,524	0
Costs +10%			8,017,179	-6,703,865	1,313,314	94,711,799	-1,313,314	0

260

								in EUR
	Exposure		Sensitivity
31 December 2022	Present value of future cash flows	Contractual service margin	Impact on the present value of future cash flows	Impact on the contractual service margin	Impact on insurance contract assets and liabilities	Remainder of the contractual service margin	Impact on earnings before tax	Impact on other comprehensive income
Traditional life insurance	535,643,431	89,680,078
Lapse rate +50%			8,843,944	-7,686,988	1,156,956	81,993,090	1,199,628	-2,356,583
Costs +10%			6,883,426	-4,771,141	2,112,285	84,908,937	-3,599,053	1,486,768
Unit-linked insurance	-59,402,924	70,604,075
Lapse rate +50%			15,765,920	-14,674,036	1,091,885	55,930,040	-1,091,885	0
Costs +10%			7,170,849	-5,506,414	1,664,435	65,097,662	-1,664,435	0

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. Liabilities under

these policies are calculated using a risk-free interest rate curve, taking into account illiquidity

premium.

Similar risks due to a special guarantee for the return arise from the supplemental voluntary

pension insurance policies during the accumulation phase. 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. As a

result, additional provisions were made for not achieving the guaranteed return at the end of

2022. During 2023, these provisions were almost fully released due to favourable returns.

Life insurance concentration risk

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. 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

abovementioned sums insured represent retention stipulated by a contract in line with the

reinsurance contract for most insurance policies.

Management of life underwriting risks in 2023

The life underwriting risk profile did not change significantly in the reporting year. The biggest

risk continues to be lapse risk, which increased minimally in 2023. This is followed by expense

risk, which did not change significantly in the reporting year.

261

2.8.1.3

Market risks

The Group invests written premium (in the framework of the insurance business) and own

assets. The value of investment portfolios depends on the situation and trends in financial

markets. Financial investments are the largest financial 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. The investment process is

carried out in compliance with the principles of asset-liability management (ALM), taking into

account both financial market returns and investment risk.

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.

Market risks are reduced by appropriately diversifying the investment portfolio and matching

assets and liabilities with respect to material characteristics. Derivatives are also used to balance

the investment portfolio, 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.

In addition to financial instruments, the Company includes real property for own use and

investment property in its market risk monitoring.

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. The Group is exposed to interest rate risk primarily in

debt securities, including those that are part of the investment portfolios of collective

investment undertakings. The Group is exposed to interest rate risk on the liabilities side,

mostly through insurance contract liabilities for life insurance, and to a lesser extent, in

insurance contract liabilities for non-life insurance, especially those created for the payment

of annuity claims for motor vehicle and accident insurance.

▪

Equity risk

is mainly related to changes in exposure and equity prices and volatile movements

in share prices. Assets and liabilities sensitive to changes in the level or stock market volatility

262

are exposed to this risk. Assets (investments) mainly include shares and equity-oriented

collective investment undertakings. 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 right of use buildings. Collective investment

undertakings focused on the real property market are also exposed to property risk.

▪

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. The Group is exposed to spread risk primarily in debt securities, including

those that are part of the investment portfolios of collective investment undertakings. The

increase in credit spreads is associated with the fall in the price of debt securities and vice

versa. Insurance liabilities are practically not sensitive to changes in the level or volatility of

credit spreads, which means that this risk cannot be eliminated by asset-liability matching.

Spread risk is actively managed through investment policies 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).

263

The table below shows the level of market risks by market risk subtype.

	Triglav Group			Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	Index	31 Dec 2023	31 Dec 2022	Index
Interest rate risk	5,418,512	21,213,611	26	5,928,971	7,918,398	75
Equity risk	33,663,939	36,731,603	92	144,576,665	140,525,478	103
Property risk	52,535,620	52,145,127	101	35,579,269	34,979,977	102
Spread risk	59,393,574	70,453,620	84	36,332,136	45,775,498	79
Currency risk	33,437,667	50,175,402	67	10,318,760	15,512,370	67
Market concentration risk	37,153,148	46,065,254	81	55,988,732	56,334,672	99
Diversification	-56,260,907	-88,047,582	64	-54,471,070	-66,170,250	82
Total market risks*	165,341,553	188,737,036	88	234,253,462	234,876,143	100

The market risks in the table are measured based on the Solvency II standard formula

methodology. The risk is measured as the decrease in the value of assets and liabilities sensitive

to changes in the value of market factors (share prices, credit spreads, interest rates, etc.) in a

regulatory stress scenario. The stress scenario is based on value-at-risk with a 99.5% confidence

interval and a holding period of one year. The level of risk depends essentially on the amount of

the exposure and a calibrated weight that illustrates the market sensitivity of the relevant asset

or liability.

The Group's market risk as at 31 December 2023 decreased by 12% year-on-year, while that of

the Company remained unchanged. The changes are explained in greater detail in the sections

below.

Exposure to interest rate risk of the Group and the Company

The Group's interest rate sensitivity dropped by 74.5%. Interest rates, which had experienced a

sharp increase in 2022, stabilised in 2023 and showed a lower degree of volatility. The euro risk-

free interest rate curve took on a less characteristic inverted shape, with peak interest rate levels

at the short end of the curve. The Company adapted the interest rate sensitivity of its investment

portfolios to market conditions and the portfolio of insurance liabilities. The duration of the

Group's interest rate-sensitive investment portfolio decreased by 0.1 year overall, while the

duration of the investment portfolios backing long-term insurance liabilities increased (around

0.5 year), while the duration of the investment portfolios backing shorter maturities and excess,

i.e. own funds, shortened. This allowed the Company to take advantage of the relatively higher

interest rates at the short end of the curve and, by investing at the longer end of the curve, to

further close the interest rate gap with liabilities that it had experienced in the previous year.

The sensitivity analysis of the Group's investment portfolio related to (unit-linked assets are

excluded)

change in interest rate and its impact on comprehensive income or profit or loss

showed that a sudden parallel rise in interest rates of 100 basis points would have a negative

impact in the amount of EUR 61.9 million, which would be reflected in other comprehensive

income, and an additional EUR 1.0 million in profit or loss. A parallel fall in interest rates of 100

basis points would have a positive impact of EUR 70.2 million in comprehensive income and EUR

1.1 million in profit or loss. The impact of interest rate movements is adjusted for the specificities

of the treatment of financial assets for financial reporting purposes. Interest rate movements

also have an impact on the Group's and the Company's financial statements on the liability side,

which significantly reduces the abovementioned potential impacts.

264

The Group manages interest rate risk based on market values. For this purpose, the duration

gap of interest-sensitive items is monitored 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

mismatch assessment as at 31 December 2023 was slightly higher year-on-year. Interest rate

risk is actively managed by adjusting the portfolio at all times. The duration gap of assets and

liabilities at Group level is negative and stands at –1.5 years (compared to –1.2 years as at 31

December 2022). The most important impact originates from the Company, where the duration

gap of assets and liabilities is –2.2 years (compared to –1.9 years as at 31 December 2022). 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 –2.2 years and

in its non-life insurance portfolio –0.3 year.

Exposure to equity risk of the Group and the Company

Equity risk arises from exposure to equity investments and undertakings for collective

investment in shares. Compared to the end of the previous year, this risk decreased by 8.4% at

Group level. The Company divested a significant part of listed equity investments that were too

geographically concentrated in the domestic market, while a decrease was also recorded in

equity-linked collective investment undertakings.

Sectoral diversification of equity investments is shown in the table. For the purpose of

transparency and consistency with the balance sheet figures, investments that are in principle

not subject to equity risk (bond funds, money market funds) were also added to this category

under collective investment undertakings.

265

Exposure and sectoral diversification of assets for which the Group and the Company assume

equity risk

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Equity investments	9,854,613	23,289,583	7,436,024	20,553,995
Communications	33,366	438,154	0	415,313
Cyclical sectors	2,207,134	1,966,016	2,080,901	1,845,037
Non-cyclical sectors	961,770	12,644,238	610,305	11,953,119
Finance	2,839,773	4,049,358	1,041,532	2,228,148
Industry	1,016,750	1,017,537	1,010,000	1,010,000
Technology	93,250	62,615	0	0
Public goods	2,641,391	3,102,229	2,641,391	3,102,229
Other	61,181	9,436	51,895	149
Public collective investment undertakings	46,177,391	85,607,611	0	23,992,361
Equity funds	3,767,867	40,801,101	0	10,326,995
Bond funds	39,142,674	41,606,930	0	13,665,366
Money market funds	3,150,687	2,833,327	0	0
Asset allocation funds	116,162	366,253	0	0
Private collective investment undertakings	112,648,193	90,923,485	111,327,945	89,713,879
Equity funds	24,595,393	24,341,114	24,534,960	24,279,081
Bond funds	28,830,644	11,284,728	28,830,644	11,284,728
Infrastructure funds	34,878,186	31,939,682	34,878,186	31,939,682
Real estate funds	17,641,074	17,051,263	16,381,259	15,903,691
Other	6,702,896	6,306,697	6,702,896	6,306,697
Total assets exposed to equity risk	168,680,196	199,820,678	118,763,969	134,260,236

The sensitivity analysis of the change in prices of equity investments, whose risks are borne by

the Group, and an analysis of this impact on the Group's profit or loss showed that a 10% increase

in market prices of equities in the portfolio would increase the portfolio's value by EUR 5.2

million. An equal fall in the market prices of shares would result in a decrease in profit or loss of

the same amount.

Exposure to property risk of the Group and the Company

Exposure to investment property and real property for own use did not change significantly in

the reporting period. Also, the exposure to collective investment undertakings focused on the

real property market did not change significantly. The level of risk, therefore, remained almost

unchanged.

The Group's and the Company's land, buildings and investment property are presented in the

financial statements under the cost model, and therefore movements in real property prices do

not directly affect the amount of profit or loss and other comprehensive income. In the event of

significant declines in real property prices, the need to impair these assets is assessed.

Exposure to spread risk of the Group and the Company

The Group's exposure to spread risk is an important source of investment return generated by

the Group's management of the debt portion of the investment portfolio.

Credit spreads in 2023 on average showed significantly lower volatility than in the previous year.

On average, they closed slightly. The Group proactively manages spread risk in line with their

investment policies.

266

Exposure to debt securities of non-sovereign issuers, which are the main contributors to spread

risk, decreased at Group level in the reporting period primarily due to the decline in debt

instruments of sovereign issuers. Together with the reduction in the duration of the credit-

sensitive investment portfolio by 0.6 year and with the credit quality of this part of the portfolio

remaining almost unchanged, this is a significant reason for the reduction in the Group's spread

risk, which declined by 15.7% in the reporting period.

In its investment portfolio, the Group is exposed to investments with outstanding credit quality.

A total of 65.2% (2022: 60.4%) of investments in debt securities have at least an "A" credit rating.

In the corporate debt securities segment, financial institutions' securities represent 57.0% of

investments (2022: 57.9%).

Exposure of assets to spread risk

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Government debt securities	1,199,254,862	1,135,125,961	734,645,565	755,555,413
AAA	406,759,440	412,917,252	248,650,933	303,547,279
AA	237,082,341	191,704,530	183,588,815	164,224,477
A	216,807,741	139,143,616	183,822,567	110,359,754
BBB	201,076,501	261,977,218	109,179,368	158,470,806
Below BBB	133,216,091	126,462,964	7,136,483	17,471,185
Not rated	4,312,748	2,920,381	2,267,400	1,481,912
Corporate debt securities	660,790,040	666,530,213	510,450,952	522,750,934
AAA	11,430,045	12,608,849	10,327,440	10,145,518
AA	70,457,675	69,974,852	58,650,231	63,168,975
A	269,934,941	262,244,076	205,720,829	211,773,808
BBB	265,202,398	265,377,264	202,355,550	192,567,322
Below BBB	18,922,792	28,172,596	17,009,161	25,925,669
Not rated	24,842,189	28,152,576	16,387,742	19,169,641
Total debt securities and other fixed-income securities	1,860,044,901	1,801,656,173	1,245,096,517	1,278,306,347

* The table includes debt securities measured at fair value. Financial contract assets and unit-linked insurance assets are excluded.

Investments in debt securities measured at amortised cost reduce the impact of the change in

credit spreads on profit or loss and other comprehensive income. Investments in debt securities

measured at amortised cost represent 8.4% of total debt securities at 31 December 2023 (31

December 2022: 8.6%).

Exposure to currency rate risk of the Group and the Company

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.

In addition to the local currencies of the countries in which the Group operates, other currencies

are also present, to a lesser extent, in the investment portfolio of the Group. These are mainly

due to the currency matching of assets and liabilities, primarily in the part of the investment

portfolio backing reinsurance liabilities.

The Group is also exposed to foreign currencies through its investments in collective investment

undertakings. The Group does not currently use derivatives to manage currency risk.

267

The currency risk at Group level fell by 33.4%. The bulk of the change is due to the adoption of

the euro in Croatia, with the reduction in exposure to collective investment undertakings

contributing to a further decrease.

Changes in exchange rates are directly reflected in the Company's financial statements. Due to

the low exposure to foreign currencies, the impact is low. The local currencies of the countries in

which the Group operates, with the exception of the Serbian dinar and North Macedonian denar,

are pegged to the euro and therefore their exchange rate volatility is very low.

268

Currency exposure of the Group's assets and liabilities

31 December 2023	EUR	USD	BAM	RSD	MKD	Other	Total	The elimination of intercompany transactions within the Group	Carrying amount
Financial investments	2,436,641,042	18,861,282	61,611,076	51,675,806	30,007,480	45,513,864	2,644,310,550	1,469,780	2,642,840,770
Insurance contract assets	12,736,081	0	9,559	0	78,709	0	12,824,349	730,471	12,093,878
Reinsurance contract assets	493,515,491	8,377,534	8,152,322	12,232,984	-14,461	2,078,713	524,342,583	196,609,428	327,733,155
Other receivables	33,982,583	1,539	595,378	2,045,181	1,640,089	63,632	38,328,402	684,399	37,644,003
Cash and cash equivalents	64,634,828	3,580,013	8,976,924	4,618,303	1,641,005	969,590	84,420,663	-4	84,420,667
Total assets	3,041,510,025	30,820,368	79,345,259	70,572,274	33,352,822	48,625,799	3,304,226,547	199,494,074	3,104,732,473
Subordinated liabilities	49,994,402	0	0	0	0	0	49,994,402	0	49,994,402
Insurance contract liabilities	2,372,321,566	8,453,492	15,500,405	49,143,146	21,190,148	59,881,610	2,526,490,367	195,842,762	2,330,647,605
Reinsurance contract liabilities	3,194,200	0	2,821,870	1,790,628	440,923	0	8,247,621	1,787,021	6,460,600
Lease liabilities	14,385,944	0	1,359,068	0	643,676	0	16,388,688	4,723,355	11,665,333
Other financial liabilities	1,401,466	0	269,318	553,670	8,742	0	2,233,196	1,569,754	663,442
Total liabilities	2,441,297,578	8,453,492	19,950,661	51,487,444	22,283,489	59,881,610	2,603,354,274	203,922,892	2,399,431,382
Net currency exposure	600,212,447	22,366,876	59,394,598	19,084,830	11,069,333	-11,255,811	700,872,273	-4,428,818	705,301,091

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that

provides a comparison with the financial statements.

269

31 December 2022	EUR	USD	BAM	RSD	MKD	Other	Total	The elimination of intercompany transactions within the Group	Carrying amount
Financial investments	2,378,763,840	20,728,606	48,660,206	45,350,905	26,261,495	38,885,982	2,558,651,034	1,468,018	2,557,183,016
Insurance contract assets	12,442,652	2,757	1,737	116,755	133,336	8,482	12,705,719	-432,005	13,137,724
Reinsurance contract assets	243,889,015	6,386,626	13,197,352	6,259,793	0	9,717,594	279,450,380	90,116,282	189,334,098
Other receivables	47,309,042	224,231	673,954	1,469,143	1,298,884	97,777	51,073,031	594,694	50,478,337
Cash and cash equivalents	47,343,083	1,263,011	18,975,480	4,137,748	1,895,311	2,451,647	76,066,280	1	76,066,279
Total assets	2,729,747,632	28,605,231	81,508,729	57,334,344	29,589,026	51,161,482	2,977,946,444	91,746,990	2,886,199,454
Subordinated liabilities	49,941,796	0	0	0	0	0	49,941,796	0	49,941,796
Insurance contract liabilities	1,992,333,770	20,687,901	49,166,966	37,199,896	12,783,709	63,965,763	2,176,138,005	91,809,520	2,084,328,485
Reinsurance contract liabilities	6,675,245	0	233,140	2,436,003	469,072	0	9,813,460	348,398	9,465,062
Lease liabilities	12,399,991	0	1,290,940	0	1,491,615	0	15,182,546	4,589,220	10,593,326
Other financial liabilities	1,290,840	0	389,745	526,874	6,453	26,417	2,240,329	762,064	1,478,265
Total liabilities	2,062,641,642	20,687,901	51,080,791	40,162,773	14,750,849	63,992,180	2,253,316,136	97,509,202	2,155,806,934
Net currency exposure	667,105,990	7,917,330	30,427,938	17,171,571	14,838,177	-12,830,698	724,630,308	-5,762,212	730,392,520

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that

provides a comparison with the financial statements.

270

Currency exposure of the Company's assets and liabilities

31 December 2023	EUR	USD	BAM	RSD	MKD	Other	Total
Financial investments	1,888,444,347	0	0	149	0	0	1,888,444,496
Insurance contract assets	10,958,826	0	0	0	0	0	10,958,826
Reinsurance contract assets	305,976,870	0	0	0	0	0	305,976,870
Other receivables	20,047,025	0	0	0	0	0	20,047,025
Cash and cash equivalents	30,622,259	1,022,842	0	23,799	2,961	7,583	31,679,444
Total assets	2,256,049,327	1,022,842	0	23,948	2,961	7,583	2,257,106,661
Subordinated liabilities	49,994,402	0	0	0	0	0	49,994,402
Insurance contract liabilities	1,885,673,792	0	0	0	0	0	1,885,673,792
Reinsurance contract liabilities	0	0	0	0	0	0	0
Lease liabilities	4,573,011	0	0	0	0	0	4,573,011
Other financial liabilities	22,769	0	0	0	0	0	22,769
Total liabilities	1,940,263,974	0	0	0	0	0	1,940,263,974
Net currency exposure	315,785,353	1,022,842	0	23,948	2,961	7,583	316,842,687

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented

in a way that provides a comparison with the financial statements.

31 December 2022	EUR	USD	BAM	RSD	MKD	Other	Total
Financial investments	1,882,599,664	0	0	149	0	0	1,882,599,813
Insurance contract assets	7,395,480	0	0	0	0	0	7,395,480
Reinsurance contract assets	167,888,159	0	0	0	0	0	167,888,159
Other receivables	35,130,589	0	0	0	0	0	35,130,589
Cash and cash equivalents	18,243,168	177,733	0	68,227	2,961	804,760	19,296,850
Total assets	2,111,257,060	177,733	0	68,377	2,961	804,760	2,112,310,891
Subordinated liabilities	49,941,796	0	0	0	0	0	49,941,796
Insurance contract liabilities	1,688,411,267	0	0	0	0	0	1,688,411,267
Reinsurance contract liabilities	4,052,384	0	0	0	0	0	4,052,384
Lease liabilities	4,054,668	0	0	0	0	0	4,054,668
Other financial liabilities	22,640	0	0	0	0	0	22,640
Total liabilities	1,746,482,755	0	0	0	0	0	1,746,482,755
Net currency exposure	364,774,305	177,733	0	68,377	2,961	804,760	365,828,136

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented

in a way that provides a comparison with the financial statements.

271

Market concentration risk

Market concentration risk arises from overexposure of financial investments to a single issuer,

sector or country. The Group continuously monitors concentration of exposure to issuers and

groups of related issuers as well as geographical and sector concentration. The sector structure

of equity securities is presented in the section on equity risk and that of debt securities in the

section on spread risk. Below, the geographical structure of sovereign debt securities is added.

The Group's largest aggregate exposure to a single issuer as at 31 December 2023 was to

Germany amounting to EUR 134.4 million (31 December 2022: EUR 99.2 million in exposure to

a European Community supranational issuer), while the Company's largest aggregate exposure

to a single issuer as at 31 December 2023 was EUR 62 million to a European Community

supranational issuer (31 December 2022: EUR 92 million in exposure to the same issuer).

Geographical concentration of investments in government debt securities

		in EUR
	Triglav Group
	31 Dec 2023	31 Dec 2022
Germany	252,626,510	225,051,224
Transnational organisations	139,831,347	178,181,659
Slovenia	104,591,751	106,569,327
Croatia	88,586,259	98,003,629
Italy	62,834,327	60,146,452
Other countries	550,784,668	467,173,669
TOTAL GOVERNMENT DEBT SECURITIES	1,199,254,862	1,135,125,961

		in EUR
	Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022
Germany	128,393,296	156,692,275
Transnational organisations	108,990,137	143,702,042
Slovenia	79,512,257	80,640,000
Spain	58,127,722	55,339,091
Italy	50,179,805	47,487,994
Other countries	309,442,349	271,694,011
TOTAL GOVERNMENT DEBT SECURITIES	734,645,565	755,555,413

Management of market risks in 2023

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 overall and across all market risk subtypes as a result of active risk management

and redirecting investments to safer asset classes. The structure of market risks did not change

significantly compared to the previous year.

2.8.1.4

Credit risk

The Group is 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.

272

Within credit risk, the Group monitors the following risks by type of business partner

(counterparty):

▪

Risks from expected payments under insurance contracts:

This exposure is managed by

regularly monitoring the payment dynamics by various homogeneous groups and insurance

segments.

▪

Risks from expected payments under reinsurance contracts:

The Group is exposed to credit

risk when underwriting risks are transferred to reinsurers. Their exposure to reinsurance is

measured by reinsurance contract assets and liabilities and expected payments under

reinsurance and coinsurance contracts. 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.

▪

Risks from cooperation with banks:

Credit risks arising from investments in deposits, 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.

▪

Spread risk of debt securities

, which is presented among market risks.

Exposure to credit risk by source of origin

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Assets exposed to risks from expected payments under insurance contracts	296,123,546	261,532,022	161,964,700	148,742,329
Assets exposed to risks from expected payments under reinsurance contracts	365,577,477	169,368,833	327,428,753	146,454,319
Assets exposed to risks from cooperation with banks	108,370,575	99,704,424	35,364,447	23,065,241
Total assets exposed to credit risk	770,071,598	530,605,279	524,757,900	318,261,889

* Exposure from cooperation with banks does not include financial contract assets and unit-linked insurance assets.

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. The concentration risk of individual counterparties is managed with a single

database of reinsurers, banks and bank groups.

273

Exposure of the Group and the Company to credit risk from expected payments under insurance

contracts

The Group is exposed to credit risk through the expected payments of premium and

subrogations, which affect the amount of the calculated insurance contract assets and liabilities.

The policyholders' payment discipline is closely monitored through a number of indicators. The

movements of written premium and payments are monitored by maturity, in different time

periods and by insurance class. With regard to expected payments of subrogations, recovery

performance and the proportion of subrogations paid in relation to claims settled are also

monitored.

Exposures of the Group and the Company to credit risk from expected payments under insurance

contracts

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Expected premium payments	241,074,293	201,117,331	107,381,641	90,974,819
Expected subrogation payments	55,049,253	60,414,691	54,583,059	57,767,510
TOTAL	296,123,546	261,532,022	161,964,700	148,742,329

Age structure of expected premium payments

				in EUR
Gross expected payments	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Not due	190,188,030	146,818,952	82,628,472	65,991,779
Overdue up to 30 days	11,175,004	14,978,433	5,725,457	6,493,281
Overdue from 31 to 60 days	7,456,574	7,764,784	2,477,180	2,264,794
Overdue from 61 to 90 days	5,971,365	5,986,190	1,501,774	1,077,440
Overdue over 90 days	26,283,320	25,568,972	15,048,758	15,147,525
TOTAL EXPECTED PAYMENTS	241,074,293	201,117,331	107,381,641	90,974,819

Age structure of expected subrogation payments

				in EUR
Gross expected payments	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Not due	199,246	679,516	193,883	231,574
Overdue up to 30 days	365,952	690,762	365,321	672,197
Overdue from 31 to 60 days	698,555	908,532	685,616	707,514
Overdue from 61 to 90 days	1,151,802	1,383,874	1,151,134	1,251,707
Overdue over 90 days	52,633,698	56,752,007	52,187,105	54,904,518
TOTAL EXPECTED PAYMENTS	55,049,253	60,414,691	54,583,059	57,767,510

Exposure of the Group and the Company to credit risk from expected payments under reinsurance

contracts

Exposure to reinsurance partners by credit rating

	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
AAA	0.0%	0.0 %	0.0 %	0.0%
AA to BBB	85.0%	73.5%	87.0%	77.6%
Below BBB	3.5%	7.8%	4.5%	6.9%
Not rated	11.6%	18.7%	8.5%	15.5%
Average credit rating	BBB	BBB	BBB	BBB

274

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 11.6%. The bulk stems from insurance claims of insurance companies in strategic

markets, which are covered by local non-rated reinsurers. The proportion of non-rated reinsurers

in the Company is slightly lower, i.e. 8.5%. The reason for the decrease compared to 2022 is

mainly due to an increase in provisions and receivables to better-rated partners (counterparties)

as a result of floods in Slovenia in the reporting year, which are reinsured with better-rated

reinsurers. In nominal terms, the exposure of the Company to non-rated reinsurers did not

change significantly in the reporting year.

The geographical concentration of reinsurers at Group level is the highest in Germany.

Compared to 2022, it changed mainly due to the increase in the concentration of exposure to

reinsurers in Luxembourg, United Kingdom and Switzerland. 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 2023		31 Dec 2022
Germany	14.4%	Germany	15.7%
Luxembourg	11.0%	Kazahstan	10.5%
United Kingdom	9.5%	Serbia	8.8%
Switzerland	7.0%	Russia	8.2%
Kazahstan	6.9%	United Kingdom	7.8%

Zavarovalnica Triglav
	31 Dec 2023		31 Dec 2022
Slovenia	62.9%	Slovenia	50.0%
Kazahstan	9.5%	Kazahstan	12.0%
United Kingdom	6.8%	Russia	9.2%
Cyprus	3.8%	Cyprus	6.7%
Russia	3.6%	United Kingdom	6.1%

Exposure of the Group and the Company to credit risk from cooperation with banks

With regard to deposits, 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. In 2023, the credit ratings of banks to which the Group is exposed did

not change significantly.

275

Management of credit risks in 2023

The Company actively managed these risks by regularly monitoring all credit risk exposures. The

largest was the increase in exposures to reinsurers due to the activated reinsurance protection

following loss events in 2023. The impact of this increase on credit risks was nevertheless

limited, as the reinsurance protection was taken out with reinsurers with (high) credit ratings.

2.8.1.5

Liquidity risk

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. The risk of settling matured and contingent liabilities and market liquidity risk are

monitored in the context of the liquidity risk.

▪

Risk of settling matured and contingent liabilities

is the risk of being unable to dispose of a

liquidity position that allows settling 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.

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.

276

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 Group does not carry out securities lending techniques.

Exposure of the Group and the Company to liquidity risk

Assets and liabilities of the Triglav Group by contractual maturity*

								in EUR
31 December 2023	Not defined	< 1 year	1 – 5 years	5 – 10 years	> 10 years	Total	The elimination of intercompany transactions within the Group	Carrying amount
Financial investments	707,646,416	474,666,207	979,921,868	221,907,815	260,168,243	2,644,310,549	1,469,779	2,642,840,770
Insurance contract assets	0	-366,183	8,673,874	3,718,761	797,897	12,824,349	730,471	12,093,878
Reinsurance contract assets	0	346,320,625	165,669,165	9,854,304	2,498,489	524,342,583	196,609,428	327,733,155
Other receivables	1,014,334	35,570,530	1,742,665	874	0	38,328,403	684,400	37,644,003
Cash and cash equivalents	45,354,022	39,066,642	0	0	0	84,420,664	-3	84,420,667
Total assets	754,014,772	895,257,821	1,156,007,572	235,481,754	263,464,629	3,304,226,548	199,494,075	3,104,732,473
Subordinated liabilities	0	0	0	0	49,994,402	49,994,402	0	49,994,402
Insurance contract liabilities	591,491,919	811,998,011	640,444,697	180,534,084	302,021,655	2,526,490,366	195,842,761	2,330,647,605
Reinsurance contract liabilities	0	8,287,425	-34,711	-4,319	-773	8,247,622	1,787,022	6,460,600
Lease liabilities	1,087,204	5,023,302	9,638,996	639,189	0	16,388,691	4,723,358	11,665,333
Other financial liabilities	469,459	821,902	941,835	0	0	2,233,196	1,569,754	663,442
Total liabilities	593,048,582	826,130,640	650,990,817	181,168,954	352,015,284	2,603,354,277	203,922,895	2,399,431,382

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides

a comparison with the financial statements.

277

								in EUR
31 December 2022	Not defined	< 1 year	1 – 5 years	5 – 10 years	> 10 years	Total	The elimination of intercompany transactions within the Group	Carrying amount
Financial investments	667,810,453	305,281,814	1,079,124,248	294,322,740	212,111,779	2,558,651,034	1,468,018	2,557,183,016
Insurance contract assets	0	4,125,313	5,538,538	2,662,289	379,580	12,705,720	-432,004	13,137,724
Reinsurance contract assets	0	154,395,890	97,287,584	18,107,561	9,659,345	279,450,380	90,116,282	189,334,098
Other receivables	103,442	49,384,367	1,517,181	27,839	40,200	51,073,029	594,692	50,478,337
Cash and cash equivalents	70,434,811	5,631,470	0	0	0	76,066,281	2	76,066,279
Total assets	738,348,706	518,818,854	1,183,467,551	315,120,429	222,190,904	2,977,946,444	91,746,990	2,886,199,454
Subordinated liabilities	0	0	0	0	49,941,796	49,941,796	0	49,941,796
Insurance contract liabilities	517,007,046	594,297,000	559,062,888	175,729,971	330,041,102	2,176,138,007	91,809,522	2,084,328,485
Reinsurance contract liabilities	0	13,298,694	-2,898,838	-230,193	-356,203	9,813,460	348,398	9,465,062
Lease liabilities	15,461	4,964,791	9,626,162	576,131	0	15,182,545	4,589,219	10,593,326
Other financial liabilities	272,416	1,120,697	640,000	207,213	0	2,240,326	762,061	1,478,265
Total liabilities	517,294,923	613,681,182	566,430,212	176,283,122	379,626,695	2,253,316,134	97,509,200	2,155,806,934

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Unit-linked insurance assets are also presented under financial investments.

**** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a way that provides

a comparison with the financial statements.

278

The total value of financial assets exceeds the total value of financial liabilities in 2023 as well.

The surplus is presented in the maturity buckets of up to 10 years and with undefined maturity.

In the buckets of over 10 years, 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. Insurance contract liabilities 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.

Assets and liabilities of Zavarovalnica Triglav by contractual maturity*

						in EUR
31 December 2023	Not defined	< 1 year	1 – 5 years	5 – 10 years	> 10 years	Total
Financial investments	631,587,976	209,366,159	659,870,080	166,443,541	221,176,739	1,888,444,496
Insurance contract assets	0	-2,027,413	8,481,341	3,708,863	796,034	10,958,826
Reinsurance contract assets	0	179,602,104	118,503,433	5,621,324	2,250,009	305,976,870
Other receivables	0	19,723,657	323,368	0	0	20,047,025
Cash and cash equivalents	0	31,679,444	0	0	0	31,679,444
Total assets	631,587,976	438,343,951	787,178,223	175,773,729	224,222,782	2,257,106,661
Subordinated liabilities	0	0	0	0	49,994,402	49,994,402
Insurance contract liabilities	565,058,237	486,502,880	425,969,934	130,380,717	277,762,025	1,885,673,792
Reinsurance contract liabilities	0	0	0	0	0	0
Lease liabilities	0	1,282,270	2,801,656	489,085	0	4,573,011
Other financial liabilities	0	22,769	0	0	0	22,769
Total liabilities	565,058,237	487,807,919	428,771,590	130,869,802	327,756,427	1,940,263,974

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a

way that provides a comparison with the financial statements.

31 December 2022

						in EUR
	Not defined	< 1 year	1 – 5 years	5 – 10 years	> 10 years	Total
Financial investments	580,394,591	165,454,868	746,978,826	213,206,271	176,565,257	1,882,599,813
Insurance contract assets	0	-742,102	5,138,798	2,610,398	388,387	7,395,480
Reinsurance contract assets	0	76,462,943	68,952,599	13,367,824	9,104,793	167,888,159
Other receivables	0	34,825,700	304,889	0	0	35,130,589
Cash and cash equivalents	19,296,850	0	0	0	0	19,296,850
Total assets	599,691,441	276,001,409	821,375,112	229,184,493	186,058,436	2,112,310,891
Subordinated liabilities	0	0	0	0	49,941,796	49,941,796
Insurance contract liabilities	494,204,398	373,397,434	384,359,534	128,890,721	307,559,180	1,688,411,267
Reinsurance contract liabilities	0	7,538,191	-2,894,275	-234,741	-356,791	4,052,384
Lease liabilities	0	1,052,085	2,526,177	476,406	0	4,054,668
Other financial liabilities	0	22,640	0	0	0	22,640
Total liabilities	494,204,398	382,010,350	383,991,436	129,132,386	357,144,184	1,746,482,755

* The table show's financial assets and liabilities and insurance and reinsurance contract assets and liabilities.

** Financial contract assets and liabilities are excluded.

*** Negative amounts of assets represent liabilities and negative amounts of liabilities represent receivables. They are presented in a

way that provides a comparison with the financial statements

Management of liquidity risk in 2023

In the reporting year, the Company regularly monitored and, on this basis, managed liquidity

risk in order to maintain an optimal liquidity level, also taking into account liquidity stress

testing. Despite higher CAT claims, the Company ensured that liquidity risk was kept at a low

level at all times. In fact, investment policies aim to ensure a high volume of liquid securities.

279

In 2023, liquidity risk was also carefully assessed when placing funds in alternative investments.

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

in the event of a deteriorating situation in the financial markets.

2.8.1.6

Operational risks

Operational risks are the risks of loss arising from inadequate or failed internal processes,

personnel or systems, or from external events and their impact.

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 Group and the Company aim to ensure an appropriate

level of information security (confidentiality, integrity and availability) for any information that

is their business asset, and in doing so follow 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 operating losses in a professional, diligent and ethical manner. Here, the

greatest emphasis is placed on key business processes and the 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 group, 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, the Company transfers the

operational risk management system to subsidiaries, all of which regularly report on realised

operational loss events and other material operational risks.

280

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 securing 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 checked. 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.

Management of operational risks in 2023

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.

More attention was paid to the perceived growing risks and, when necessary, appropriate

measures were taken to prevent them from materialising.

2.8.1.7

Non-financial risks

Non-financial risks to the Triglav Group's operations include material 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 of 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.

281

▪

The 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

(including 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

relate to the quality and functioning of the natural environment and

originate primarily from climate change. We divide these risks 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 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.

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 assessment is key, as the Group

set high goals in this area.

Management of non-financial risks in 2023

In the reporting year, 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 continue to be the most

material among sustainability risks for the Group. They were particularly carefully examined in

282

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.

2.8.1.8

Capital management

Capital management is the process by which the Group determines and maintains an adequate

amount and quality of capital.

Central to effective capital management is a well-integrated risk management system that

ensures, among other things, consistent assessment of the profitability of transactions relative

to assumed risks, while striving to maintain target capital adequacy.

As part of the Group's regular capital management to ensure optimal capital composition and

cost efficiency, the Company issued a subordinated bond, which is taken into account in the

calculation of 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. The Group uses capital surplus as protection against losses due to unforeseen adverse

events and volatile capital requirements.

The management of capital and capital risk is presented in greater detail in Section 9.2 of the

Business Report, which is part of the Group's Annual Report.

2.9

Segment reporting

Zavarovalnica Triglav's management monitors the Group's and the Company's operations by

business segment.

Business segments in the context of the Group's and the Company's operations differ from one

another 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.

All components of the Group's and the Company's operations are included in one of the business

segments.

The results of a specific business 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 and the Company 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. They are classified in specific insurance groups partly directly and partly

through defined allocation keys.

283

Assets and liabilities are allocated directly to each segment and are already kept separately in

the accounting records by insurance group.

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.

2.9.1

Triglav Group business segments

							in EUR
Statement of financial position	31 December 2023
	NON-LIFE	LIFE	HEALTH	OTHER	TOTAL (before eliminations)	ELIMINATIONS	TOTAL (after eliminations)
ASSETS	2,102,753,151	2,252,821,244	75,026,842	197,667,205	4,628,268,442	-530,623,871	4,097,644,571
Property, plant and equipment	92,100,097	9,677,819	243,629	4,807,264	106,828,809	0	106,828,809
Investment property	46,631,837	1,313,861	0	20,008,075	67,953,773	0	67,953,773
Right-of-use assets	10,553,722	649,911	456,897	4,010,629	15,671,159	-4,557,710	11,113,449
Intangible assets and goodwill	27,861,086	6,546,623	160,130	20,582,946	55,150,785	-494,479	54,656,306
Deferred tax assets	13,173,005	3,083,875	6,278,596	89,386	22,624,862	-657,314	21,967,548
Investments in subsidiaries	207,752,086	20,376,561	2,500,000	76,847,618	307,476,265	-307,476,265	0
Investments in associates and joint ventures	37,218,841	489,221	0	0	37,708,062	0	37,708,062
Financial investments	1,049,619,772	1,491,593,857	62,593,300	40,603,620	2,644,410,549	-1,569,779	2,642,840,770
– at fair value through other comprehensive income	923,192,895	684,743,887	62,593,300	2,436,850	1,672,966,932	0	1,672,966,932
– at amortised cost	34,231,570	194,125,613	0	2,772,323	231,129,506	-1,569,779	229,559,727
– at fair value through profit or loss	92,195,307	612,724,357	0	35,394,447	740,314,111	0	740,314,111
Financial contract assets	0	674,115,145	0	0	674,115,145	0	674,115,145
– investments at amortised cost	0	283,215,425	0	0	283,215,425	0	283,215,425
– investments at fair value through profit or loss	0	366,826,746	0	0	366,826,746	0	366,826,746
– receivables from financial contracts	0	123,066	0	0	123,066	0	123,066
– cash from financial contracts	0	23,949,908	0	0	23,949,908	0	23,949,908
Insurance contract assets	2,586,908	10,236,542	900	0	12,824,350	-730,472	12,093,878
Reinsurance contract assets	522,995,008	387,756	959,820	0	524,342,584	-196,609,429	327,733,155
Non-current assets held for sale	0	0	1,141,578	1,988,131	3,129,709	0	3,129,709
Current corporate income tax assets	9,935,445	215	0	78,705	10,014,365	-1,522,841	8,491,524
Other receivables	40,917,376	2,219,989	401,435	9,726,657	53,265,457	-17,005,582	36,259,875
Cash and cash equivalents	34,716,464	31,457,653	224,810	18,021,740	84,420,667	0	84,420,667
Other assets	6,691,504	672,216	65,747	902,434	8,331,901	0	8,331,901
EQUITY AND LIABILITIES	2,102,753,165	2,252,821,246	75,026,842	197,667,199	4,628,268,452	-530,623,881	4,097,644,571
Equity	752,719,489	232,341,849	34,956,137	178,397,556	1,198,415,031	-307,315,048	891,099,983
Controlling interests	752,719,489	232,341,849	34,956,137	178,397,556	1,198,415,031	-310,999,301	887,415,730
– share capital	139,925,767	77,182,266	43,322,167	107,457,354	367,887,554	-294,186,162	73,701,392
– share premium	43,441,236	39,662,781	0	44,333,234	127,437,251	-77,114,672	50,322,579
– reserves from profit	449,300,501	47,822,211	1,853,961	13,720,624	512,697,297	-7,594,315	505,102,982
– treasury share reserves	0	0	0	364,680	364,680	0	364,680
– treasury shares	0	0	0	-364,680	-364,680	0	-364,680
– accumulated other comprehensive income	-26,586,470	-8,724,369	-475,182	169,960	-35,616,061	-1,799,922	-37,415,983
– retained earnings from previous years	144,119,733	50,435,241	14,515,917	7,712,179	216,783,070	89,308,878	306,091,948
– net profit or loss for the year	4,451,867	26,729,485	-24,260,726	5,019,015	11,939,641	-19,132,179	-7,192,538
– translation differences	-1,933,145	-765,766	0	-14,810	-2,713,721	-480,929	-3,194,650
Non-controlling interests	0	0	0	0	0	3,684,253	3,684,253
Subordinated liabilities	49,994,402	0	0	0	49,994,402	0	49,994,402
Deferred tax liabilities	1,479,287	707,030	0	348,513	2,534,830	-669,020	1,865,810
Financial contract liabilities	0	674,115,144	0	0	674,115,144	1	674,115,145
Insurance contract liabilities	1,176,337,749	1,315,876,867	34,275,747	0	2,526,490,363	-195,842,758	2,330,647,605
Reinsurance contract liabilities	8,244,374	3,246	0	0	8,247,620	-1,787,020	6,460,600
Provisions	20,039,372	6,395,711	1,699,744	2,212,658	30,347,485	0	30,347,485
Lease liabilities	11,001,645	664,258	460,757	4,262,029	16,388,689	-4,723,356	11,665,333
Other financial liabilities	1,501,620	22,281	0	709,312	2,233,213	-1,569,771	663,442
Current corporate income tax liabilities	482,098	133,981	0	1,478,317	2,094,396	-1,522,841	571,555
Other liabilities	80,953,129	22,560,879	3,634,457	10,258,814	117,407,279	-17,194,068	100,213,211

284

							in EUR
Statement of financial position	31 December 2022 adjusted
	NON-LIFE	LIFE	HEALTH	OTHER	TOTAL (before eliminations)	ELIMINATIONS	TOTAL (after eliminations)
ASSETS	1,818,151,978	2,092,732,856	93,926,843	186,465,796	4,191,277,473	-388,929,721	3,802,347,752
Property, plant and equipment	93,605,505	10,052,974	1,804,464	4,402,893	109,865,836	0	109,865,836
Investment property	46,643,721	1,208,134	0	20,473,632	68,325,487	0	68,325,487
Right-of-use assets	10,579,313	777,319	428,285	2,860,095	14,645,012	-4,452,087	10,192,925
Intangible assets and goodwill	27,043,156	7,466,972	377,811	18,832,320	53,720,259	0	53,720,259
Deferred tax assets	12,237,709	1,081,762	1,990,729	88,559	15,398,759	-612,531	14,786,228
Investments in subsidiaries	171,768,414	19,377,792	7,500	69,381,544	260,535,250	-260,535,250	0
Investments in associates and joint ventures	37,369,536	440,648	0	0	37,810,184	0	37,810,184
Financial investments	1,063,666,852	1,381,531,311	72,877,987	40,674,884	2,558,751,034	-1,568,018	2,557,183,016
– at fair value through other comprehensive income	906,053,531	654,690,377	72,727,291	682,316	1,634,153,515	0	1,634,153,515
– at amortised cost	51,302,856	188,374,970	0	2,895,221	242,573,047	-1,568,018	241,005,029
– at fair value through profit or loss	106,310,465	538,465,964	150,696	37,097,347	682,024,472	0	682,024,472
Financial contract assets	0	613,818,646	0	0	613,818,646	0	613,818,646
– investments at amortised cost	0	321,859,990	0	0	321,859,990	0	321,859,990
– investments at fair value through profit or loss	0	267,173,099	0	0	267,173,099	0	267,173,099
– receivables from financial contracts	0	1,147,412	0	0	1,147,412	0	1,147,412
– cash from financial contracts	0	23,638,145	0	0	23,638,145	0	23,638,145
Insurance contract assets	6,543,871	6,161,845	0	0	12,705,716	432,008	13,137,724
Reinsurance contract assets	270,937,720	7,890,550	622,111	0	279,450,381	-90,116,283	189,334,098
Non-current assets held for sale	200,309	0	0	1,984,512	2,184,821	0	2,184,821
Current corporate income tax assets	921,368	215	1,503,957	2,240,643	4,666,183	-4,183,200	482,983
Other receivables	46,863,911	10,465,348	12,212,496	8,632,635	78,174,390	-27,696,053	50,478,337
Cash and cash equivalents	25,852,011	32,147,601	1,777,759	16,288,908	76,066,279	0	76,066,279
Other assets	3,918,582	311,739	323,744	605,171	5,159,236	-198,307	4,960,929
EQUITY AND LIABILITIES	1,818,151,997	2,092,732,852	93,926,843	186,465,783	4,191,277,475	-388,929,723	3,802,347,752
Equity	748,697,149	203,844,123	32,214,465	169,930,514	1,154,686,251	-257,720,549	896,965,702
Controlling interests	748,697,149	203,844,123	32,214,465	169,930,514	1,154,686,251	-261,334,675	893,351,576
– share capital	129,690,864	77,249,393	20,822,144	106,331,530	334,093,931	-260,392,540	73,701,391
– share premium	43,380,681	39,652,231	0	31,340,734	114,373,646	-64,068,973	50,304,673
– reserves from profit	430,039,408	47,825,525	1,853,961	8,214,536	487,933,430	-6,099,470	481,833,960
– treasury share reserves	0	0	0	364,680	364,680	0	364,680
– treasury shares	0	0	0	-364,680	-364,680	0	-364,680
– accumulated other comprehensive income	-33,726,924	-20,073,689	-4,977,557	161,339	-58,616,831	-1,974,576	-60,591,407
– retained earnings from previous years	221,239,154	60,315,983	17,040,511	35,411,636	334,007,284	84,307,749	418,315,033
– net profit or loss for the year	-39,958,943	-173,204	-2,524,594	-11,460,077	-54,116,818	-12,920,668	-67,037,486
– translation differences	-1,967,091	-952,116	0	-69,184	-2,988,391	-186,197	-3,174,588
Non-controlling interests	0	0	0	0	0	3,614,126	3,614,126
Subordinated liabilities	49,941,796	0	0	0	49,941,796	0	49,941,796
Deferred tax liabilities	1,475,065	759,556	0	440,642	2,675,263	-624,237	2,051,026
Financial contract liabilities	0	613,818,649	0	0	613,818,649	-3	613,818,646
Insurance contract liabilities	892,955,862	1,239,540,706	43,641,446	0	2,176,138,014	-91,809,529	2,084,328,485
Reinsurance contract liabilities	9,813,188	0	273	0	9,813,461	-348,399	9,465,062
Provisions	16,007,579	13,926,087	1,082,765	2,268,271	33,284,702	0	33,284,702
Lease liabilities	10,886,854	793,211	436,456	3,066,025	15,182,546	-4,589,220	10,593,326
Other financial liabilities	1,520,372	21,674	0	698,262	2,240,308	-762,049	1,478,259
Current corporate income tax liabilities	10,127,663	65,650	0	1,222,404	11,415,717	-4,183,200	7,232,517
Other liabilities	76,726,469	19,963,196	16,551,438	8,839,665	122,080,768	-28,892,537	93,188,231

285

							in EUR
	2023
Statement of profit or loss and other comprehensive income	NON-LIFE	LIFE	HEALTH	OTHER	TOTAL (before eliminations)	ELIMINATIONS	TOTAL (after eliminations)
Statement of profit or loss
Insurance service result	57,229,150	27,210,040	-24,902,213	0	59,536,977	0	59,536,977
– insurance income	1,056,160,921	85,367,869	209,657,875	0	1,351,186,665	0	1,351,186,665
– insurance service expenses	-1,028,951,009	-59,777,022	-234,528,227	0	-1,323,256,258	0	-1,323,256,258
– net reinsurance service result	30,019,238	1,619,193	-31,861	0	31,606,570	0	31,606,570
Investment result	15,805,429	67,940,585	-2,864,610	2,740,539	83,621,943	209,244	83,831,187
– interest income calculated using the effective interest method	16,495,253	17,813,075	684,528	118,738	35,111,594	-13,297	35,098,297
– dividend income	2,022,129	682,935	0	0	2,705,064	0	2,705,064
– net gains and losses on financial investments	-858,622	48,384,028	-3,744,177	2,624,838	46,406,067	0	46,406,067
– net impairment and reversal of impairment of financial investments	1,326,121	774,968	193,706	-3,037	2,291,758	0	2,291,758
– other effects of investing activities	-3,179,452	285,579	1,333	0	-2,892,540	222,541	-2,669,999
Financial result from insurance contracts	-4,851,122	-64,706,573	-120,241	0	-69,677,936	0	-69,677,936
– financial result from insurance contracts	-4,909,230	-64,713,983	-120,241	0	-69,743,454	0	-69,743,454
– financial result from reinsurance contracts	58,108	7,410	0	0	65,518	0	65,518
Change in financial contract liabilities	0	3,985	0	0	3,985	-3,985	0
Income from asset management	0	7,251,368	0	32,703,777	39,955,145	-269,658	39,685,487
Non-attributable operating expenses	-44,425,374	-14,304,777	-2,225,212	-46,566,669	-107,522,032	14,353,563	-93,168,469
Net other operating income and expenses	-9,185,864	1,716,902	940,977	21,247,803	14,719,818	-13,219,271	1,500,547
Net other financial income and expenses	-3,548,040	-54,491	14,796	-168,058	-3,755,793	64,283	-3,691,510
Net impairment and reversal of impairment of non-financial assets	-2,501,482	-6,420	0	-7,614	-2,515,516	0	-2,515,516
Gains and losses on investments in associates	2,194,361	48,574	0	0	2,242,935	0	2,242,935
Net other income and expenses	909,963	3,040,185	-673,921	1,174,683	4,450,910	-1,134,175	3,316,735
Profit or loss before tax	11,627,021	28,139,378	-29,830,424	11,124,461	21,060,436	1	21,060,437
Tax expense	-3,508,613	-4,537,546	5,317,578	-2,066,661	-4,795,242	0	-4,795,242
NET PROFIT OR LOSS FOR THE PERIOD	8,118,408	23,601,832	-24,512,846	9,057,800	16,265,194	1	16,265,195
Controlling interests	7,933,580	23,577,851	-24,512,846	9,077,900	16,076,485	0	16,076,485
Non-controlling interests	184,828	23,981	0	-20,100	188,709	0	188,709
Statement of other comprehensive income
Items that will not be reclassified to profit or loss in future periods	2,865,221	-73,268	18,566	9,075	2,819,594	0	2,819,594
– effects of equity instruments measured through other comprehensive income	4,332,776	78,671	0	0	4,411,447	0	4,411,447
– actuarial gains and losses	-1,347,124	-220,585	18,566	27,090	-1,522,053	0	-1,522,053
– other net gains and losses that will not be reclassified to profit or loss in future periods	127,558	0	0	0	127,558	0	127,558
Tax on items that will not be reclassified to profit or loss	-247,989	68,646	0	-18,015	-197,358	0	-197,358
Items that may be reclassified to profit or loss in future periods	16,049,128	11,365,585	4,482,999	6,155	31,903,867	0	31,903,867
– accumulated insurance finance income and expenses	-21,076,904	-27,789,296	-282,415	0	-49,148,615	0	-49,148,615
– accumulated reinsurance finance income and expenses	3,646,017	1,379	0	0	3,647,396	0	3,647,396
– effect of debt instruments measured through other comprehensive income	36,189,913	39,772,131	5,795,126	6,839	81,764,009	0	81,764,009
– other items	0	0	0	0	0	0	0
Tax on items that may be reclassified to profit or loss in future periods	-2,709,898	-618,629	-1,029,712	-684	-4,358,923	0	-4,358,923
Translation differences	-36,177	-406,238	0	396,421	-45,994	-1	-45,995
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX	18,878,172	10,886,079	4,501,565	411,651	34,677,467	-1	34,677,466
Controlling interests	18,894,654	10,920,118	4,501,565	435,311	34,751,648	0	34,751,648
Non-controlling interests	-16,482	-34,039	0	-23,660	-74,181	0	-74,181

286

							in EUR
	2022 adjusted
Statement of profit or loss and other comprehensive income	NON-LIFE	LIFE	HEALTH	OTHER	TOTAL (before eliminations)	ELIMINATIONS	TOTAL (after eliminations)
Statement of profit or loss
Insurance service result	52,302,153	15,112,399	2,442,614	0	69,857,166	0	69,857,166
– insurance income	923,531,228	78,086,766	204,984,870	0	1,206,602,864	0	1,206,602,864
– insurance service expenses	-766,045,623	-63,703,911	-202,542,256	0	-1,032,291,790	0	-1,032,291,790
– net reinsurance service result	-105,183,452	729,544	0	0	-104,453,908	0	-104,453,908
Investment result	1,517,457	-82,464,791	-954,138	-6,649,239	-88,550,711	-72,790	-88,623,501
– interest income calculated using the effective interest method	10,539,268	15,673,918	485,563	39,147	26,737,896	-62,000	26,675,896
– dividend income	3,562,183	1,124,363	0	0	4,686,546	0	4,686,546
– net gains and losses on financial investments	-9,301,799	-96,123,407	-752,462	-6,693,199	-112,870,867	0	-112,870,867
– net impairment and reversal of impairment of financial investments	-3,774,936	-3,089,254	-681,574	0	-7,545,764	0	-7,545,764
– other effects of investing activities	492,741	-50,411	-5,665	4,813	441,478	-10,790	430,688
Financial result from insurance contracts	-869,166	83,051,634	39,539	0	82,222,007	0	82,222,007
– financial result from insurance contracts	140,279	83,056,538	39,539	0	83,236,356	0	83,236,356
– financial result from reinsurance contracts	-1,009,445	-4,904	0	0	-1,014,349	0	-1,014,349
Change in financial contract liabilities	0	1	0	0	1	0	1
Income from asset management	0	6,934,348	0	30,823,282	37,757,630	-289,136	37,468,494
Non-attributable operating expenses	-42,956,176	-14,905,711	-2,734,100	-41,146,177	-101,742,164	12,106,751	-89,635,413
Net other operating income and expenses	-21,544,923	-8,627,976	-840,016	26,331,436	-4,681,479	-9,874,090	-14,555,569
Net other financial income and expenses	-2,435,537	-16,122	160,651	-208,949	-2,499,957	453,844	-2,046,113
Net impairment and reversal of impairment of non-financial assets	-818	0	0	0	-818	0	-818
Gains and losses on investments in associates	1,841,505	678	0	0	1,842,183	0	1,842,183
Net other income and expenses	-2,157,422	-3,202,085	-1,080	1,130,189	-4,230,398	-2,324,580	-6,554,978
Profit or loss before tax	-14,302,927	-4,117,625	-1,886,530	10,280,542	-10,026,540	-1	-10,026,541
Tax expense	2,903,313	1,329,827	526,469	-1,705,502	3,054,107	0	3,054,107
NET PROFIT OR LOSS FOR THE PERIOD	-11,399,614	-2,787,798	-1,360,061	8,575,040	-6,972,433	-5	-6,972,438
Controlling interests	160,426	13,560	0	-308,944	-134,958	0	-134,958
Non-controlling interests	-11,560,040	-2,801,358	-1,360,061	8,883,984	-6,837,475	0	-6,837,475
Statement of other comprehensive income
Items that will not be reclassified to profit or loss in future periods	-7,238,881	-2,213,203	427	84,118	-9,367,539	0	-9,367,539
– effects of equity instruments measured through other comprehensive income	-10,168,151	-2,941,019	0	0	-13,109,170	0	-13,109,170
– actuarial gains and losses	1,143,828	222,221	427	84,118	1,450,594	0	1,450,594
– other net gains and losses that will not be reclassified to profit or loss in future periods	0	0	0	0	0	0	0
Tax on items that will not be reclassified to profit or loss	1,785,442	505,595	0	0	2,291,037	0	2,291,037
Items that may be reclassified to profit or loss in future periods	-31,363,408	-4,343,998	-5,739,980	-66,395	-41,513,781	0	-41,513,781
– accumulated insurance finance income and expenses	51,674,063	126,728,235	433,279	0	178,835,577	0	178,835,577
– accumulated reinsurance finance income and expenses	-6,791,054	-1,425	0	0	-6,792,479	0	-6,792,479
– effect of debt instruments measured through other comprehensive income	-84,089,659	-129,947,204	-7,519,824	-73,035	-221,629,722	0	-221,629,722
– other items	-67,105	0	0	0	-67,105	0	-67,105
Tax on items that may be reclassified to profit or loss in future periods	7,910,347	-1,123,604	1,346,565	6,640	8,139,948	0	8,139,948
Translation differences	7,543	-61,741	-1	-6,039	-60,238	1	-60,237
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX	-38,594,746	-6,618,942	-5,739,554	11,684	-50,941,558	1	-50,941,557
Controlling interests	-435,645	82,559	0	0	-353,086	0	-353,086
Non-controlling interests	-38,159,101	-6,701,501	-5,739,554	11,684	-50,588,472	0	-50,588,472

287

2.9.2

Zavarovalnica Triglav business segments

						in EUR
Statement of financial position	31 December 2023			31 December 2022 adjusted
	NON-LIFE	LIFE	TOTAL	NON-LIFE	LIFE	TOTAL
ASSETS	1,369,119,087	1,586,767,950	2,955,887,037	1,258,384,787	1,483,830,122	2,742,214,910
Property, plant and equipment	60,764,599	7,844,878	68,609,478	61,139,796	7,976,101	69,115,897
Investment property	43,152,887	274,294	43,427,181	43,095,689	281,484	43,377,173
Right-of-use assets	4,356,487	0	4,356,487	3,940,725	0	3,940,725
Intangible assets and goodwill	24,441,317	6,437,832	30,879,149	23,574,598	7,343,311	30,917,910
Deferred tax assets	10,071,867	2,726,371	12,798,238	10,118,611	802,917	10,921,528
Investments in subsidiaries	200,826,677	18,533,689	219,360,367	166,826,654	18,533,689	185,360,343
Investments in associates and joint ventures	37,218,841	0	37,218,841	37,369,536	0	37,369,536
Financial investments	628,013,043	1,260,431,453	1,888,444,496	696,957,343	1,185,642,470	1,882,599,813
– at fair value through other comprehensive income	541,324,405	552,848,289	1,094,172,694	592,272,836	551,060,117	1,143,332,952
– at amortised cost	4,673,513	138,169,793	142,843,306	18,148,872	133,618,473	151,767,345
– at fair value through profit or loss	82,015,125	569,413,371	651,428,496	86,535,635	500,963,880	587,499,515
Financial contract assets	0	259,624,041	259,624,041	0	234,968,514	234,968,514
– investments at amortised cost	0	86,215,285	86,215,285	0	99,398,021	99,398,021
– investments at fair value through profit or loss	0	169,625,986	169,625,986	0	131,403,313	131,403,313
– receivables from financial contracts	0	83,130	83,130	0	398,787	398,787
– cash from financial contracts	0	3,699,640	3,699,640	0	3,768,392	3,768,392
– other assets from financial contracts	0	0	0	0	0	0
Insurance contract assets	763,841	10,194,985	10,958,826	1,323,954	6,071,526	7,395,480
Reinsurance contract assets	305,976,870	0	305,976,870	167,888,159	0	167,888,159
Non-current assets held for sale	0	0	0	0	0	0
Current corporate income tax assets	9,302,529	0	9,302,529	0	0	0
Other receivables	29,019,266	1,488,741	30,508,007	37,351,308	9,244,402	46,595,710
Cash and cash equivalents	12,536,522	19,142,923	31,679,444	6,368,612	12,928,238	19,296,850
Other assets	2,674,341	68,743	2,743,084	2,429,800	37,471	2,467,271
EQUITY AND LIABILITIES	1,369,119,086	1,586,767,952	2,955,887,038	1,258,384,787	1,483,830,122	2,742,214,910
Equity	556,994,740	112,226,378	669,221,118	568,054,385	90,894,760	658,949,145
– 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	438,248,752	45,513,891	483,762,643	419,248,752	45,513,891	464,762,643
– accumulated other comprehensive income	-19,849,348	-9,660,492	-29,509,840	-25,237,531	-21,071,825	-46,309,356
– retained earnings from previous years	46,762,812	21,428,800	68,191,612	136,545,152	28,111,020	164,656,172
– net profit or loss for the year	147,006	19,515,420	19,662,426	-54,187,505	2,912,915	-51,274,590
Subordinated liabilities	49,994,402	0	49,994,402	49,941,796	0	49,941,796
Deferred tax liabilities	0	0	0	0	0	-1
Financial contract liabilities	0	259,624,041	259,624,041	0	234,968,514	234,968,514
Insurance contract liabilities	688,581,223	1,197,092,569	1,885,673,792	551,610,694	1,136,800,573	1,688,411,267
Reinsurance contract liabilities	0	0	0	4,052,384	0	4,052,384
Provisions	11,993,826	2,329,680	14,323,506	10,456,475	6,578,617	17,035,092
Lease liabilities	4,573,011	0	4,573,011	4,054,668	0	4,054,668
Other financial liabilities	22,767	2	22,769	22,640	0	22,640
Current corporate income tax liabilities	0	0	0	9,697,471	0	9,697,471
Other liabilities	56,959,118	15,495,282	72,454,400	60,494,274	14,587,659	75,081,933

No items disclosed in the statement of financial position by business segment are offset. The

amount of the balance sheet total after offsetting is shown below.

		in EUR
	31 December 2023	31 December 2022 adjusted
Balance sheet total (without offsetting)	2,955,887,037	2,742,214,910
Intersegment receivables and liabilities	-10,460,982	-11,440,100
Offset balance	2,945,426,055	2,730,774,810

288

						in EUR
Statement of profit or loss	2023			2022 adjusted
	NON-LIFE	LIFE	TOTAL	NON-LIFE	LIFE	TOTAL
Insurance service result	37,125,732	23,968,310	61,094,042	21,160,754	15,137,828	36,298,582
– insurance income	709,194,358	66,443,013	775,637,370	628,205,422	61,998,801	690,204,222
– insurance service expenses	-711,516,271	-42,474,703	-753,990,974	-531,673,410	-46,860,972	-578,534,383
– net reinsurance service result	39,447,646	0	39,447,646	-75,371,258	0	-75,371,258
Investment result	9,428,055	60,706,670	70,134,725	-3,591,864	-78,018,316	-81,610,180
– interest income calculated using the effective interest method	7,747,149	13,864,061	21,611,210	4,247,679	12,873,306	17,120,984
– dividend income	1,851,785	589,749	2,441,534	3,301,187	1,109,037	4,410,224
– net gains and losses on financial investments	-723,332	45,438,112	44,714,780	-7,816,304	-90,737,373	-98,553,677
– net impairment and reversal of impairment of financial investments	689,654	605,796	1,295,450	-4,118,800	-1,012,744	-5,131,544
– other effects of investing activities	-137,201	208,952	71,751	794,375	-250,543	543,833
Financial result from insurance contracts	-2,905,419	-59,878,679	-62,784,098	-878,996	77,888,291	77,009,295
– financial result from insurance contracts	-3,015,273	-59,878,679	-62,893,952	-48,574	77,888,291	77,839,717
– financial result from reinsurance contracts	109,854	0	109,854	-830,422	0	-830,422
Income from asset management	0	2,854,726	2,854,726	0	2,735,182	2,735,182
Non-attributable operating expenses	-29,418,654	-9,830,107	-39,248,760	-29,252,285	-10,652,466	-39,904,751
Net other operating income and expenses	-3,156,264	2,661,234	-495,030	-16,925,685	-7,832,889	-24,758,574
Net other financial income and expenses	-2,706,647	-111,431	-2,818,078	-2,355,961	-180,984	-2,536,945
Net impairment and reversal of impairment of non- financial assets	-2,496,338	-6,407	-2,502,745	-1,025,411	-2,894,788	-3,920,199
Gains and losses on investments in associates	15,179,539	3,406,222	18,585,761	30,831,080	3,712,193	34,543,272
Net other income and expenses	454,332	286,631	740,963	1,744,292	1,793,018	3,537,310
Profit or loss before tax	21,504,336	24,057,169	45,561,505	-294,076	1,687,069	1,392,992
Tax expense	-2,357,330	-4,541,749	-6,899,078	6,306,571	1,225,846	7,532,417
NET PROFIT OR LOSS FOR THE PERIOD	19,147,006	19,515,420	38,662,426	6,012,495	2,912,915	8,925,410

						in EUR
Statement of other comprehensive income	2023			2022 adjusted
	NON-LIFE	LIFE	TOTAL	NON-LIFE	LIFE	TOTAL
Net profit for the period after tax	19,147,006	19,515,420	38,662,426	6,012,495	2,912,915	8,925,410
Other comprehensive income after tax	17,040,524	11,406,893	28,447,417	-30,319,765	-6,192,610	-36,512,374
Items that will not be reclassified to profit or loss in future periods	2,714,878	-151,939	2,562,939	-6,920,976	-2,056,374	-8,977,350
Accumulated insurance finance income and expenses	-1,373,424	-220,586	-1,594,009	1,196,820	222,221	1,419,041
Accumulated reinsurance finance income and expenses	4,332,776	0	4,332,776	-9,836,905	-2,784,190	-12,621,095
Tax on items that will not be reclassified to profit or loss	-244,474	68,646	-175,828	1,719,109	505,594	2,224,703
Items that may be reclassified to profit or loss in future periods	14,325,646	11,558,832	25,884,478	-23,398,788	-4,136,235	-27,535,024
Accumulated insurance finance income and expenses	-13,877,650	-23,171,554	-37,049,204	40,127,356	110,975,156	151,102,512
Accumulated reinsurance finance income and expenses	4,090,372	0	4,090,372	-10,002,491	0	-10,002,491
Effects of debt instruments measured through other comprehensive income	26,722,093	35,469,170	62,191,263	-59,012,259	-113,776,689	-172,788,948
Tax on items that may be reclassified to profit or loss in future periods	-2,609,168	-738,785	-3,347,953	5,488,606	-1,334,702	4,153,904
COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX	36,187,530	30,922,313	67,109,843	-24,307,270	-3,279,695	-27,586,965

289

2.10

The impact of geopolitical risks, the changed economic situation and climate change on

the Group's and the Company's financial statements

The changed macroeconomic situation, geopolitical risks and the effects of climate change were

the main developments that had a significant impact on the Group's and the Company's

operations in 2023.

The changed macroeconomic environment and geopolitical risks had a major impact on the

Group's and the Company's operations in 2023, mainly through developments in global financial

markets. The main features of the macroeconomic environment in 2023 were elevated inflation,

rising interest rates and declining economic growth. Rising interest rates had an impact on the

required yields on debt financial instruments and on the market values of these investments.

The effects of these changes mostly affected the Group's and the Company's market risks.

Higher inflation had an impact on the growth of claims from insurance contracts and on the

increase of operating expenses in 2023. The Group and the Company faced rising costs of

reinsurance protection due to the uncertain macroeconomic environment.

The impacts of the changes described above on market, underwriting and credit risks are

presented in more detail in Section 2.8, and the management of these risks is discussed in

greater detail in the Business Report.

The 2023 financial year was characterised by natural catastrophes, mainly floods, prolonged dry

spells and frequent hailstorms, which significantly increased the volume of claims from

insurance contracts. The frequency and severity of extreme weather events in 2023 were

significantly higher than the long-term average, which is attributed to climate change. Should

these trends continue, we expect the demand for insurance coverage to increase, and thus the

need for a broader ranger of reinsurance covers required. In this case, the cost of reinsurance

protection would increase and the non-life insurance portfolio would become riskier, increasing

the need for additional capital.

In addition to physical risks, climate change also entails the risk of transition to a low-carbon

economy. As the insurance sector is not one of the sectors identified as high carbon, the

transition measures are not expected to have a direct impact on the Group's and the Company's

business, but they are aware of their responsibility to promote the transition of society to a low-

carbon business. The Group's and the Company's activities in this area are described in more

detail in sections 10 and 11 of the Business Report.

2.11

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.

290

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
	2023	2022	2023	2022
Insurance premium tax	67,322,022	60,722,335	55,210,551	49,806,199
Fees from income of natural persons (employer's contributions and taxes)	26,816,689	26,151,952	17,041,234	16,004,255
Corporate income tax	23,713,935	25,465,708	19,388,729	20,633,936
Fire fee	8,430,325	5,619,234	7,867,386	5,043,587
Value added tax	5,195,391	5,966,859	2,046,545	1,269,293
Fee for the use of building land	972,013	1,036,726	794,126	742,547
Financial services tax	647,883	613,045	103,385	104,215
Other fees	704,090	1,055,105	0	0
Total fees charged in the year	133,802,348	126,630,964	102,451,956	93,604,032

On 1 January 2024, the Minimum Tax Act (hereinafter: ZMD) entered into force in Slovenia,

which was adopted based on the EU Directive on global minimum taxation, which is part of the

global agreement under the auspices of the Organisation for Economic Co-operation and

Development (OECD). The purpose of the minimum tax is to ensure a global minimum taxation

of the profits of multinational enterprises (MNEs) and domestic groups with a 15% minimum

tax rate.

The first top-up tax return and information return for 2024 will have to be submitted by the

Company within 18 months after the end of the 2024 calendar year, i.e. by 30 June 2026. The

impact of the ZMD on the tax policy and tax liabilities of the Group and the Company is still

being assessed.

2.12

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 2022. Except for the new or

amended standards and interpretations effective for annual periods beginning on or after 1

January 2023, 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:

New IFRS 17 Insurance Contracts

The IASB published the new standard on 18 May 2017. 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

issued on 25 June 2020 introduced simplifications and clarifications of some requirements in the

standard and provided additional reliefs in the first-time application of IFRS 17.

291

The new IFRS 17 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 of the new standard 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.

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.

Amendments to IAS 1 Presentation of Financial Statements

Amendments were issued by IASB on 12 February 2021. They refer to the disclosure of

accounting policies and are effective for annual periods beginning on or after 1 January 2023.

Amendments to IAS 1 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 issued by the IASB on 12 February 2021 are effective for annual periods beginning

on or after 1 January 2023 and relate to the definition of accounting estimates.

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 issued by the IASB on 6 May 2021 are effective for annual periods beginning on or

after 1 January 2023 and relate to deferred tax related to assets and liabilities arising from a

single transaction.

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.

Amendments to IAS 12 Income Taxes

Amendments were issued by IASB on 23 May 2023. They relate to international tax reform –

pillar two model rules and are effective for annual periods beginning on or after 1 January 2023.

The amendments introduce a temporary exemption from accounting for deferred tax arising

from jurisdictions implementing the global tax rules and disclosure requirements for a

company's exposure to income tax arising from the reform, in particular before the enactment

of the legislation giving effect to the rules.

292

The impact of amendments to existing standards on the Group's and the Company's financial

statements

The adoption of IFRS 17 and IFRS 9 had a significant impact on the consolidated and separate

financial statements of Zavarovalnica Triglav. Notes on the transition are included 2.6.

Adopted standards and amendments to existing standards which will become effective at a

later date, not applied by the Group and the Company 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:

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 or lessee to subsequently measure lease liabilities

arising from a leaseback in a way that the seller or lessee 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 or lessee from recognising in profit or loss any gain or loss relating to the partial or full

termination of a lease.

The impact of new standards and amendments to existing standards that will be effective at a later

date on the Group's and the Company's financial statements

It is estimated that the adopted amendments to IFRS 16 will not significantly impact 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 2024 and relate to

the classification of liabilities as current and non-current and non-current liabilities with

covenants.

Amendments issued in January 2020 provide a more general approach to the classification of

liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The

amendments issued in October 2022 clarify how the conditions that the entity must fulfil within

twelve months after the reporting period affect the classification of liabilities and specify that

both amendments are effective for annual periods beginning on or after 1 January 2024.

293

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures

Amendments are effective for annual periods beginning on or after 1 January 2024 and relate to

supplier finance arrangements.

The amendments add disclosure requirements and "signposts" within existing disclosure

requirements to provide qualitative and quantitative information about supplier finance

arrangements.

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates

Amendments are effective for annual periods beginning on or after 1 January 2025 and relate to

the lack of exchangeability.

The amendments provide guidance to specify when a currency is exchangeable and how to

determine the exchange rate when it is not.

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 Group's and the Company'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 Group's and the Company's separate and

consolidated financial statements in the period of initial application.

294

Notes to specific significant items in the financial

statements

3.1

Insurance business

3.1.1

Assumptions and accounting estimates used in the valuation of insurance contracts

Discount rates

According to the IFRS17, which defines the preparation of discount curves that reflect market

conditions as much as possible and the use of market data, discount curves are prepared based

on the conditions that also apply in regulation Solvency II. IFRS17 mandates the creation of

discount curves that closely mirror market conditions, utilizing market data. Similarly, regulation

Solvency II adopts these criteria for curve preparation. EIOPA is responsible for ensuring the

methodology for discount curve development of Solvency II regulation is transparent, adhering

to IFRS17's emphasis on market data alignment. Approach of using Solvency II as a basis for

discount curve creation not only enhances transparency but also enables a direct comparison

between the technical provisions of Solvency II and IFRS17, including the reinsured portions. An

additional advantage is that this ensures comparability between Solvency II and IFRS17 technical

provisions and their reinsured part.

The discount curve or the time structure of interest rates is prepared at the level of the Triglav

Insurance Company and the Group level using the »bottom-up« approach, where a risk-free time

structure of interest rates is first prepared, to which an illiquidity premium is later added.

The requirements of the IFRS17 standard also determine the preparation of a risk-free time

structure of interest rates, which is adjusted for the illiquidity premium. The illiquidity premium

reflects the markup on the risk-free discount curve that bears the cost or premium of illiquid

market conditions.

295

		31 December 2022
		1 year	5 years	10 years	20 years	30 years
Life	Risk free yield	3.18%	3.13%	3.09%	2.77%	2.73%
Life	Illiquidity Premium	0.06%-0.26%	0.06%-0.26%	0.07%-0.27%	0.06%-0.26%	0.05%-0.21%
Non-Life	Risk free yield	3.18%	3.13%	3.09%	2.77%	2.73%
Non-Life	Illiquidity Premium	0.19%	0.19%	0.19%	0.19%	0.16%

		31 December 2023
		1 year	5 years	10 years	20 years	30 years
Life	Risk free yield	3.36%	2.32%	2.39%	2.41%	2.53%
Life	Illiquidity Premium	0.08%-0.33%	0.08%-0.33%	0.08%-0.33%	0.09%-0.35%	0.08%-0.30%
Non-Life	Risk free yield	3.36%	2.32%	2.39%	2.41%	2.53%
Non-Life	Illiquidity Premium	0.20%	0.20%	0.20%	0.20%	0.17%

Risk free yield curves are used for all non-life assets and obligations across the Group except for

Triglav Insurance Company’s obligations which are paid out as annuities. They are significant

enough in Triglav Insurance Company’s non-life obligations to merit a separate consideration.

Such obligations use 100 % illiquidity premium which corresponds to EIOPA’s published risk free

rate curves with volatility adjustment.

Estimates of future cash flows to fulfil insurance contracts

All the future cash flows within the boundary of each group of contracts are included in the

measurement model of each group of contracts in the scope of IFRS 17. The projection of cash

flows, which is used to calculate the best estimate for life and non-life insurance assets and

liabilities, contains all relevant cash flows that are required to settle liabilities to policyholders

and other beneficiaries from insurance and reinsurance contracts. Cash flows are projected for

each insurance contract separately in life business. Cash flows in non-life business are projected

on portfolio and cohort level. Cash flows that make up life and non-life insurance assets and

liabilities include cash inflows, which include future payments of insurance and reinsurance

premiums, and other income excluding income from investments, and cash outflows, which

include future pay-outs of benefits to policyholders and beneficiaries, payments of expenses and

other payments related to insurance obligations.

For Life insurance contracts, uncertainty in the estimation of future claims and benefit payments

and premium receipts arises primarily from the unpredictability of long-term changes in the

mortality rates, the variability in the policyholder behaviour and uncertainties regarding future

inflation rates and expenses growth.

For non-life insurance and reinsurance contracts, uncertainty in the estimation of future claims

and benefit payments and premium receipts arises primarily from large and catastrophic claims,

inflation and changes in claim payment patterns. It is assumed the past observations and

knowledge of future trends in portfolio composition are representative for projection of cash

flows for majority of non-life portfolio. Actuarial judgement must be used though in cases when

this assumption is not appropriate.

The assumptions used to prepare estimates of future cash flows are reassessed at least annually

and adjusted as necessary.

Significant methods and assumptions used are discussed below.

296

Mortality

In case of unavailability of sufficient internal mortality data, best estimate mortality

assumptions are based on the company's experience and the recent national mortality tables

and are expressed as a percentage of national mortality tables.

For Company mortality rates are derived based on company's own experience over the recent

five years, since the available amount of internal mortality data is sufficient. Forces of mortality

for particular age bands were derived by combining two sources (portfolio data and population

data) on number of deaths and number of central exposed to death risk. For ages where portfolio

data are scarce, greater weight was put on population data. Where portfolio data are of

sufficient size, only internal data was used. For upper boundary ages, where no internal or

population data are available, extrapolation with a chosen formula was performed.

The two basic risk factors used for grouping are age and sex. Based on past analyses these two

parameters have the biggest impact on observed mortality.

The mortality grouping of the life portfolio and the mortality assumptions used are presented in

the following table.

Group	% of national mortality tables
Endowment, annuity (premium payment phase) and term insurances	50%-130%
Whole life insurances	60%-100%
Unit linked insurances	45%-65%

Each of the three groups provide a sufficient amount of data. This could not be achieved with a

more detailed grouping. Methods used to derive mortality assumptions have not changed in the

last year.

Lapse

Estimation of lapse rates is based on the experience analysis of the company’s lapses during the

previous years.

Lapses in analysis are defined as termination of payment of premium, which includes the

following cases:

▪

cancelation of policy,

▪

surrenders and

▪

policy becoming paid-up.

First two cases are considered jointly as surrenders and separate rates were derived for

surrenders and paid-ups.

The basic risk factor used for grouping is policy year.

The lapse analysis was performed for different groups of insurance products. The actual lapse

rates from previous years were compared for different groups of insurance products to

determine which groups have experienced similar lapse rates in the past, so that similar lapse

rates can be expected also in the future. Groups were chosen in such a way to provide enough

data for each group and that all insurance products included in certain group have similar lapse

rates experience. Methods used to derive surrender and paid-up assumptions have not changed

in the last year.

297

Expenses

Estimates of future expenses relating to fulfilment of contracts in the scope of IFRS 17 in life and

non – life business was projected using current expense assumptions adjusted for inflation.

Expense assumptions were set based on the company's accounting expenses from the past

years, estimated accounting expenses from current business plan and portfolio statistics.

Expenses comprise expenses directly attributable to the groups of contracts and were analysed

and modelled separately for traditional and unit-linked business.

The expense inflation assumption was set based on published inflation forecast data from the

International Monetary Fund and other publicly available data, adjusted to the entity's own

experience.

The assumption for expense inflation was set as a vector (different expense growth rates over

the years), while it was set as constant rate in previous years projections. Methods used to derive

other expense assumptions have not changed in the last year.

Estimates of future expenses relating to fulfilment of contracts in scope of IFRS 17 in non-life

business are projected on portfolio level using current expense assumptions and adjusted for

inflation where appropriate. Future inflation is also derived from inflation forecast data from the

International Monetary Fund but amended with projections of local statistical institutes and

other reputable sources using actuarial judgement where relevant.

Expenses comprise company’s accounting expenses from past years that are directly

attributable to the groups of contracts.

Risk Adjustment

A risk adjustment for non-financial risks is the compensation that is required for bearing the

uncertainty about the amount and timing of cash flows that arises from non-financial risks as

the insurance contract is fulfilled.

The risk adjustment for life business is calculated on a policy level and then summed up to each

unit of account (bottom-up approach) allowing for risk diversification benefit achieved on a

portfolio level via simplified linearised approach. The cost of capital method was used to derive

the policy-level risk adjustment for non-financial risks. In this setting, annual capital

requirements (according to pre-set 95% confidence level) are projected for all future years until

policy run-off. Thus, risk adjustment is expressed as an expected present value of the annual cost

of capital, calculated by applying 6% cost-of-capital rate on projected annual capital

requirements.

The resulting amount of the calculated risk adjustment corresponds to confidence level of 64.2%

(2022 65.2%) for the portfolio run-off horizon.

The method used to determine the risk adjustment for non-financial risk has not changed in the

last year.

Risk adjustment for non-life business was calculated on S2 LOB level and then attributed to

portfolios of insurance contracts. It is calculated separately for liability for incurred claims and

liability for remaining coverage.

298

Calculation of risk adjustment for liability for incurred claims uses bootstrapping techniques on

claim triangles of homogeneous groups that correspond to the calculation of provision of

incurred but not reported claims. We assume that diversification from Solvency II directive is

appropriate for non-life business and use it to allocate the risk adjustment to portfolios. Value

at risk is taken as an appropriate risk measure.

Risk adjustment for liability for remaining coverage is based on Solvency II capital requirement

of insurance sub-modules for non-life risks: premium, lapse and catastrophic risks. It is assumed

that the standard formula adequately captures the risks and diversification between lines of

business so it’s parameters, along with scaling to appropriate confidence interval, is used to

allocate the risk adjustment to portfolios.

Provisions calculated as annuities of Triglav Insurance Company’s non-life liabilities for incurred

claims are considered significant enough to evaluate its risk adjustment separately from other

types of cash flows. It is calculated for both liabilities: for reported and unreported but incurred

annuities. The calculation of liability for reported annuities is also based on Solvency II’s capital

requirement and its parameters along with assumption that the risks considered in the

calculation follow normal distribution. For the second type it is assumed the frequency severity

method is appropriate for evaluation. Bootstrap techniques and value at risk measure are then

used to derive the risk adjustment for the chosen confidence interval.

Risk adjustments of reinsurance held treaties are derived using their underlying direct business

and active reinsurance contracts, considering the specifics of the risks ceded to reinsurers and

the format of reinsurance held treaties.

Calculation approach stayed the same in 2023 for non-life business in Triglav Group, but the

85 % interval chosen in 2022 was lowered to 75 % with exception of TZZ where the chosen

interval for 2023 is 80 % or 90 % for some products. Without this change, the result of Triglav

Insurance Company would be lower for 8,55 million euros and 11,6 million euros lower on Group

level.

299

3.1.2

Insurance contract assets and liabilities

Insurance contract assets and liabilities of the Triglav Group

											in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES AS AT 31 DECEMBER 2023	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Insurance contract assets	0	1,858,818	1,858,818	10,234,160	0	0	10,234,160	0	900	900	12,093,878
Assets for remaining coverage	0	3,635,220	3,635,220	17,456,327	0	0	17,456,327	0	1,894	1,894	21,093,441
Assets for incurred claims	0	-1,776,402	-1,776,402	-7,222,167	0	0	-7,222,167	0	-994	-994	-8,999,563
Insurance contract liabilities	49,731,393	930,853,323	980,584,716	759,807,417	556,131,832	1,098	1,315,940,347	3,431,906	30,690,635	34,122,541	2,330,647,604
Liabilities for remaining coverage	49,746,334	136,365,752	186,112,086	743,053,028	545,627,793	1,098	1,288,681,919	2,882,205	1,136,635	4,018,840	1,478,812,845
Liabilities for incurred claims	-14,941	794,487,571	794,472,630	16,754,389	10,504,039	0	27,258,428	549,701	29,554,000	30,103,701	851,834,759
Total net insurance contract liabilities	49,731,393	928,994,505	978,725,898	749,573,257	556,131,832	1,098	1,305,706,187	3,431,906	30,689,735	34,121,641	2,318,553,726
Net liabilities for remaining coverage	49,746,334	132,730,532	182,476,866	725,596,701	545,627,793	1,098	1,271,225,592	2,882,205	1,134,741	4,016,946	1,457,719,404
Net liabilities for incurred claims	-14,941	796,263,973	796,249,032	23,976,556	10,504,039	0	34,480,595	549,701	29,554,994	30,104,695	860,834,322

											in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES AS AT 31 DECEMBER 2022	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Insurance contract assets	0	6,975,879	6,975,879	6,158,015	3,830	0	6,161,845	0	0	0	13,137,724
Assets for remaining coverage	0	9,053,491	9,053,491	11,771,432	3,830	0	11,775,262	0	0	0	20,828,753
Assets for incurred claims	0	-2,077,612	-2,077,612	-5,613,417	0	0	-5,613,417	0	0	0	-7,691,029
Insurance contract liabilities	49,817,786	751,515,500	801,333,286	759,358,382	480,181,126	1,198	1,239,540,706	17,709,186	25,745,307	43,454,493	2,084,328,485
Liabilities for remaining coverage	50,923,974	136,243,498	187,167,472	741,944,369	471,071,413	1,198	1,213,016,980	17,374,958	-876,886	16,498,072	1,416,682,524
Liabilities for incurred claims	-1,106,188	615,272,002	614,165,814	17,414,013	9,109,713	0	26,523,726	334,228	26,622,193	26,956,421	667,645,961
Total net insurance contract liabilities	49,817,786	744,539,621	794,357,407	753,200,367	480,177,296	1,198	1,233,378,861	17,709,186	25,745,307	43,454,493	2,071,190,761
Net liabilities for remaining coverage	50,923,974	127,190,007	178,113,981	730,172,937	471,067,583	1,198	1,201,241,718	17,374,958	-876,886	16,498,072	1,395,853,771
Net liabilities for incurred claims	-1,106,188	617,349,614	616,243,426	23,027,430	9,109,713	0	32,137,143	334,228	26,622,193	26,956,421	675,336,990

300

											in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES AS AT 31 DECEMBER 2023	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Insurance contract assets	0	1,858,818	1,858,818	10,234,160	0	0	10,234,160	0	900	900	12,093,878
Estimates of the present value of the future cash flows	0	1,938,268	1,938,268	91,500,121	0	0	91,500,121	0	1,264	1,264	93,439,653
Risk adjustment for non-financial risk	0	-79,450	-79,450	-10,966,798	0	0	-10,966,798	0	-364	-364	-11,046,612
Contractual service margin	0	0	0	-70,299,163	0	0	-70,299,163	0	0	0	-70,299,163
Insurance contract liabilities	49,731,393	930,853,323	980,584,716	759,807,417	556,131,832	1,098	1,315,940,348	3,431,906	30,690,635	34,122,541	2,330,647,605
Estimates of the present value of the future cash flows	29,505,731	883,939,792	913,445,523	698,960,899	443,299,649	1,099	1,142,261,647	2,127,826	26,346,725	28,474,551	2,084,181,721
Risk adjustment for non-financial risk	3,528,310	46,913,531	50,441,841	9,405,727	12,915,268	0	22,320,995	1,211,419	4,343,910	5,555,329	78,318,165
Contractual service margin	16,697,355	0	16,697,355	51,440,791	99,916,915	0	151,357,706	92,661	0	92,661	168,147,722
Total net insurance contract liabilities	49,731,393	928,994,505	978,725,898	749,573,257	556,131,832	1,098	1,305,706,188	3,431,906	30,689,735	34,121,641	2,318,553,727
Net liabilities from expected future cash flows	29,505,731	882,001,524	911,507,255	607,460,778	443,299,649	1,099	1,050,761,526	2,127,826	26,345,461	28,473,287	1,990,742,068
Net liabilities from risk adjustment for non-financial risk	3,528,310	46,992,981	50,521,291	20,372,525	12,915,268	0	33,287,793	1,211,419	4,344,274	5,555,693	89,364,777
Net liabilities from contractual service margin	16,697,355	0	16,697,355	121,739,954	99,916,915	0	221,656,869	92,661	0	92,661	238,446,885

											in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES AS AT 31 DECEMBER 2022	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Insurance contract assets	0	6,975,879	6,975,879	6,158,015	3,830	0	6,161,845	0	0	0	13,137,724
Estimates of the present value of the future cash flows	0	7,102,274	7,102,274	61,419,381	38,686	0	61,458,067	0	0	0	68,560,341
Risk adjustment for non-financial risk	0	-126,395	-126,395	-6,668,450	-15,617	0	-6,684,067	0	0	0	-6,810,462
Contractual service margin	0	0	0	-48,592,916	-19,239	0	-48,612,155	0	0	0	-48,612,155
Insurance contract liabilities	49,817,786	751,515,500	801,333,286	759,358,382	480,181,126	1,198	1,239,540,706	17,709,186	25,745,307	43,454,493	2,084,328,485
Estimates of the present value of the future cash flows	27,876,324	699,587,722	727,464,046	697,329,004	401,274,871	1,198	1,098,605,073	16,624,193	22,898,394	39,522,587	1,865,591,706
Risk adjustment for non-financial risk	5,736,862	51,927,778	57,664,640	10,393,700	9,020,721	0	19,414,421	991,675	2,846,913	3,838,588	80,917,649
Contractual service margin	16,204,601	0	16,204,601	51,635,678	69,885,534	0	121,521,212	93,318	0	93,318	137,819,131
Total net insurance contract liabilities	49,817,786	744,539,621	794,357,407	753,200,367	480,177,296	1,198	1,233,378,861	17,709,186	25,745,307	43,454,493	2,071,190,761
Net liabilities from expected future cash flows	27,876,324	692,485,448	720,361,772	635,909,623	401,236,185	1,198	1,037,147,006	16,624,193	22,898,394	39,522,587	1,797,031,365
Net liabilities from risk adjustment for non-financial risk	5,736,862	52,054,173	57,791,035	17,062,150	9,036,338	0	26,098,488	991,675	2,846,913	3,838,588	87,728,111
Net liabilities from contractual service margin	16,204,601	0	16,204,601	100,228,594	69,904,773	0	170,133,367	93,318	0	93,318	186,431,286

301

Insurance contract assets and liabilities of Zavarovalnica Triglav

							in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES	NON-LIFE			LIFE			TOTAL
AS AT 31 DECEMBER 2023	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Insurance contract assets	0	763,841	763,841	10,194,985	0	10,194,985	10,958,826
Assets for remaining coverage	0	1,646,202	1,646,202	17,409,858	0	17,409,858	19,056,059
Assets for incurred claims	0	-882,361	-882,361	-7,214,873	0	-7,214,873	-8,097,234
Insurance contract liabilities	46,899,751	641,681,473	688,581,223	665,247,135	531,845,434	1,197,092,569	1,885,673,792
Liabilities for remaining coverage	46,930,431	122,949,760	169,880,191	651,205,674	521,653,352	1,172,859,026	1,342,739,217
Liabilities for incurred claims	-30,680	518,731,713	518,701,033	14,041,461	10,192,082	24,233,543	542,934,576
Total net insurance contract liabilities	46,899,751	640,917,632	687,817,382	655,052,150	531,845,434	1,186,897,584	1,874,714,966
Net liabilities for remaining coverage	46,930,431	121,303,558	168,233,989	633,795,816	521,653,352	1,155,449,168	1,323,683,158
Net liabilities for incurred claims	-30,680	519,614,074	519,583,394	21,256,334	10,192,082	31,448,416	551,031,810

							in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES	NON-LIFE			LIFE			TOTAL
AS AT 31 DECEMBER 2022	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Insurance contract assets	0	1,323,954	1,323,954	6,071,526	0	6,071,526	7,395,480
Assets for remaining coverage	0	6,312,256	6,312,256	11,591,499	0	11,591,499	17,903,755
Assets for incurred claims	0	-4,988,302	-4,988,302	-5,519,973	0	-5,519,973	-10,508,274
Insurance contract liabilities	46,524,097	505,086,597	551,610,694	675,841,966	460,958,607	1,136,800,573	1,688,411,267
Liabilities for remaining coverage	47,674,099	108,370,360	156,044,459	660,752,136	452,122,656	1,112,874,793	1,268,919,252
Liabilities for incurred claims	-1,150,002	396,716,237	395,566,234	15,089,830	8,835,951	23,925,781	419,492,015
Total net insurance contract liabilities	46,524,097	503,762,643	550,286,740	669,770,440	460,958,607	1,130,729,047	1,681,015,787
Net liabilities for remaining coverage	47,674,099	102,058,104	149,732,203	649,160,637	452,122,656	1,101,283,294	1,251,015,497
Net liabilities for incurred claims	-1,150,002	401,704,539	400,554,536	20,609,803	8,835,951	29,445,754	430,000,289

302

							in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES AS AT 31	NON-LIFE			LIFE			TOTAL
DECEMBER 2023	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Insurance contract assets	0	763,841	763,841	10,194,985	0	10,194,985	10,958,826
Estimates of the present value of the future cash flows	0	775,800	775,800	91,393,420	0	91,393,420	92,169,220
Risk adjustment for non-financial risk	0	-11,959	-11,959	-10,955,818	0	-10,955,818	-10,967,777
Contractual service margin	0	0	0	-70,242,617	0	-70,242,617	-70,242,617
Insurance contract liabilities	46,899,751	641,681,473	688,581,223	665,247,135	531,845,434	1,197,092,569	1,885,673,792
Estimates of the present value of the future cash flows	27,750,727	615,368,010	643,118,737	616,772,681	420,738,303	1,037,510,984	1,680,629,721
Risk adjustment for non-financial risk	3,416,816	26,313,463	29,730,279	7,823,404	12,358,498	20,181,902	49,912,181
Contractual service margin	15,732,207	0	15,732,207	40,651,050	98,748,633	139,399,683	155,131,890
Total net insurance contract liabilities	46,899,751	640,917,632	687,817,382	655,052,150	531,845,434	1,186,897,584	1,874,714,966
Net liabilities from expected future cash flows	27,750,727	614,592,210	642,342,937	525,379,261	420,738,303	946,117,564	1,588,460,501
Net liabilities from risk adjustment for non-financial risk	3,416,816	26,325,422	29,742,238	18,779,222	12,358,498	31,137,720	60,879,958
Net liabilities from contractual service margin	15,732,207	0	15,732,207	110,893,667	98,748,633	209,642,300	225,374,507

							in EUR
INSURANCE CONTRACT ASSETS AND LIABILITIES AS AT	NON-LIFE			LIFE			TOTAL
31 DECEMBER 2022	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Insurance contract assets	0	1,323,954	1,323,954	6,071,526	0	6,071,526	7,395,480
Estimates of the present value of the future cash flows	0	1,998,015	1,998,015	60,989,285	0	60,989,285	62,987,300
Risk adjustment for non-financial risk	0	-674,061	-674,061	-6,625,874	0	-6,625,874	-7,299,935
Contractual service margin	0	0	0	-48,291,885	0	-48,291,885	-48,291,885
Insurance contract liabilities	46,524,097	505,086,597	551,610,694	675,841,966	460,958,607	1,136,800,573	1,688,411,267
Estimates of the present value of the future cash flows	25,573,799	472,864,224	498,438,023	623,125,921	384,147,781	1,007,273,702	1,505,711,725
Risk adjustment for non-financial risk	5,589,997	32,222,373	37,812,370	9,048,978	8,485,625	17,534,603	55,346,973
Contractual service margin	15,360,300	0	15,360,300	43,667,068	68,325,201	111,992,268	127,352,569
Total net insurance contract liabilities	46,524,097	503,762,643	550,286,740	669,770,440	460,958,607	1,130,729,047	1,681,015,787
Net liabilities from expected future cash flows	25,573,799	470,866,209	496,440,008	562,136,636	384,147,781	946,284,417	1,442,724,425
Net liabilities from risk adjustment for non-financial risk	5,589,997	32,896,434	38,486,431	15,674,852	8,485,625	24,160,477	62,646,908
Net liabilities from contractual service margin	15,360,300	0	15,360,300	91,958,953	68,325,201	160,284,153	175,644,454

303

3.1.3

Insurance revenue and insurance service expenses recognised in profit or loss and other comprehensive income

Insurance revenue and insurance service expenses of the Triglav Group

											in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2023	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Insurance revenue recognised in profit or loss
Amounts relating to changes in liabilities for the remaining coverage	27,508,215	0	27,508,215	42,647,161	19,715,979	0	62,363,140	2,319,006	0	2,319,006	92,190,361
Expected cash flows from claims and other insurance services	14,390,842	0	14,390,842	21,837,544	7,076,811	0	28,914,355	1,859,896	0	1,859,896	45,165,093
Contractual service margin recognised in profit or loss to reflect the transfer of services	10,299,188	0	10,299,188	18,676,371	10,753,517	0	29,429,888	65,279	0	65,279	39,794,355
Release of the risk adjustment for non-financial risk for the risk expired	2,818,185	0	2,818,185	2,075,356	1,328,144	0	3,403,500	393,831	0	393,831	6,615,516
Other	0	0	0	57,890	557,507	0	615,397	0	0	0	615,397
Premium income relating to the recovery of insurance acquisition cash flows	6,634,435	0	6,634,435	13,555,252	9,448,127	0	23,003,379	296,626	0	296,626	29,934,440
Income recognised under the PAA approach	0	1,022,018,270	1,022,018,270	0	0	1,349	1,349	0	207,042,244	207,042,244	1,229,061,863
Total insurance revenue recognised in profit or loss	34,142,652	1,022,018,270	1,056,160,922	56,202,414	29,164,106	1,349	85,367,869	2,615,631	207,042,244	209,657,875	1,351,186,666
Insurance service expenses recognised in profit and loss
Incurred claims and other insurance service expenses	-6,766,534	-778,783,519	-785,550,053	-22,472,543	-5,546,346	0	-28,018,889	-2,300,092	-226,228,354	-228,528,446	-1,042,097,388
Insurance service operating expenses	-9,458,717	-233,942,240	-243,400,957	-18,986,252	-12,771,349	-811	-31,758,412	14,500,751	-20,500,534	-5,999,783	-281,159,152
Acquisition costs	-6,634,435	-165,715,773	-172,350,208	-13,555,252	-9,448,127	-642	-23,004,021	-296,626	-4,533,743	-4,830,369	-200,184,598
Losses/reversal of losses on onerous contracts	-292,825	6,094,076	5,801,251	1,079,123	1,336,310	0	2,415,433	15,106,353	-2,472,905	12,633,448	20,850,132
Administration costs	-2,531,457	-74,320,543	-76,852,000	-6,510,123	-4,659,532	-169	-11,169,824	-308,976	-13,493,886	-13,802,862	-101,824,686
Other insurance service operating expenses	0	0	0	0	0	0	0	0	0	0	0
Total insurance service expenses recognised in profit or loss	-16,225,250	-1,012,725,760	-1,028,951,010	-41,458,794	-18,317,695	-811	-59,777,300	12,200,660	-246,728,888	-234,528,228	-1,323,256,538
Net insurance revenue/insurance service expenses recognised in profit or loss	17,917,402	9,292,510	27,209,912	14,743,620	10,846,411	538	25,590,569	14,816,291	-39,686,644	-24,870,353	27,930,128
Insurance finance income/expenses
Effect of changes in interest rates and other financial assumptions	-1,500,669	-19,268,945	-20,769,614	-21,911,860	0	0	-21,911,860	-261,984	-20,434	-282,418	-42,963,892
Interest accreted using current financial asumptions	0	0	0	-3,638,454	0	0	-3,638,454	0	0	0	-3,638,454
Interest accreted at the locked-in interest rate	-98,685	-4,810,544	-4,909,229	-16,284,719	-137,177	0	-16,421,896	-25,744	-94,497	-120,241	-21,451,366
Changes in the fair value of the portfolio of insurance contracts with direct participation features	0	0	0	0	-50,356,979	0	-50,356,979	0	0	0	-50,356,979
Total net insurance finance income/expenses	-1,599,354	-24,079,489	-25,678,843	-41,835,033	-50,494,156	0	-92,329,189	-287,728	-114,931	-402,659	-118,410,691

304

											in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2023	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Net insurance finance income/expenses
Net insurance finance income/expenses recognised in profit or loss	-98,686	-4,810,544	-4,909,230	-14,219,827	-50,494,156	0	-64,713,983	-25,744	-94,497	-120,241	-69,743,454
Net insurance finance income/expenses recognised in other comprehensive income	-1,500,670	-19,268,943	-20,769,613	-27,615,206	0	0	-27,615,206	-261,983	-20,431	-282,414	-48,667,233
Total net insurance finance income/expenses	-1,599,354	-24,079,489	-25,678,843	-41,835,033	-50,494,156	0	-92,329,189	-287,728	-114,931	-402,659	-118,410,691

305

											in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2022	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Insurance revenue recognised in profit or loss
Amounts relating to changes in liabilities for the remaining coverage	24,635,253	0	24,635,253	39,551,414	16,308,259	0	55,859,673	2,193,264	0	2,193,264	82,688,190
Expected cash flows from claims and other insurance services	14,229,385	0	14,229,385	22115222	6382724	0	28,497,946	1,764,227	0	1,764,227	44,491,558
Contractual service margin recognised in profit or loss to reflect the transfer of services	7,732,466	0	7,732,466	16,502,653	8,379,024	0	24,881,677	25,207	0	25,207	32,639,350
Release of the risk adjustment for non-financial risk for the risk expired	2,673,402	0	2,673,402	2,142,785	1,353,792	0	3,496,577	403,830	0	403,830	6,573,809
Other	0	0	0	-1,209,246	192,719	0	-1,016,527	0	0	0	-1,016,527
Premium income relating to the recovery of insurance acquisition cash flows	5,295,818	0	5,295,818	12,560,819	9,664,794	0	22,225,613	251,992	0	251,992	27,773,423
Income recognised under the PAA approach	0	893,600,158	893,600,158	0	0	1,479	1,479	0	202,539,614	202,539,614	1,096,141,251
Total insurance revenue recognised in profit or loss	29,931,070	893,600,158	923,531,228	52,112,234	25,973,053	1,479	78,086,766	2,445,256	202,539,614	204,984,870	1,206,602,864
Insurance service expenses recognised in profit and loss
Incurred claims and other insurance service expenses	-2,137,964	-545,106,200	-547,244,164	-22,046,261	-4,309,951	-28,482	-26,384,694	-2,172,715	-192,347,283	-194,519,998	-768,148,856
Insurance service operating expenses	-8,353,107	-210,448,355	-218,801,462	-21,820,206	-15,495,737	-17,536	-37,333,479	8,358,454	-16,380,710	-8,022,256	-264,157,197
Acquisition costs	-5,295,818	-145,905,233	-151,201,051	-12,560,819	-9,664,794	-4,154	-22,229,767	-251,992	-4,768,963	-5,020,955	-178,451,773
Losses/reversal of losses on onerous contracts	-714,684	-4,389,211	-5,103,895	-2,667,007	-1,999,728	0	-4,666,735	8,887,274	1,276,807	10,164,081	393,451
Administration costs	-2,342,605	-60,153,911	-62,496,516	-6,592,380	-3,831,215	-13,382	-10,436,977	-276,828	-12,888,554	-13,165,382	-86,098,875
Other insurance service operating expenses	0	0	0	0	0	0	0	0	0	0	0
Total insurance service expenses recognised in profit or loss	-10,491,071	-755,554,558	-766,045,629	-43,866,465	-19,805,688	-46,018	-63,718,171	6,185,738	-208,727,994	-202,542,256	-1,032,306,056
Net insurance revenue/insurance service expenses recognised in profit or loss	19,439,999	138,045,600	157,485,599	8,245,769	6,167,365	-44,539	14,368,595	8,630,994	-6,188,380	2,442,614	174,296,808
Insurance finance income/expenses
Effect of changes in interest rates and other financial assumptions	2,899,267	48,776,243	51,675,510	87,603,230	1	0	87,603,231	417,597	15,683	433,280	139,712,021
Interest accreted using current financial asumptions	0	0	0	12,065,846	0	0	12,065,846	0	0	0	12,065,846
Interest accreted at the locked-in interest rate	-55,573	195,852	140,279	31,366,819	122,808	0	31,489,627	23,654	15,885	39,539	31,669,445
Changes in the fair value of the portfolio of insurance contracts with direct participation features	0	0	0	0	78,627,342	0	78,627,342	0	0	0	78,627,342
Total net insurance finance income/expenses	2,843,694	48,972,095	51,815,789	131,035,895	78,750,151	0	209,786,046	441,251	31,568	472,819	262,074,654

306

											in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2022	NON-LIFE			LIFE				HEALTH			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Premium allocation approach (PAA)	Total	General model (BBA)	Premium allocation approach (PAA)	Total
Net insurance finance income/expenses
Net insurance finance income/expenses recognised in profit or loss	-55,573	195,852	140,279	4,306,387	78,750,151	0	83,056,538	23,654	15,885	39,539	83,236,356
Net insurance finance income/expenses recognised in other comprehensive income	2,899,280	48,776,230	51,675,510	126,729,508	0	0	126,729,508	417,597	15,681	433,278	178,838,296
Total net insurance finance income/expenses	2,843,694	48,972,095	51,815,789	131,035,895	78,750,151	0	209,786,046	441,251	31,568	472,819	262,074,654

307

Insurance revenue and insurance service expenses of Zavarovalnica Triglav

							in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2023	NON-LIFE			LIFE			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Insurance revenue recognised in profit or loss
Amounts relating to changes in liabilities for the remaining coverage	26,785,407	0	26,785,407	30,424,967	18,988,199	49,413,166	76,198,573
Expected cash flows from claims and other insurance services	14,000,618	0	14,000,618	12,761,768	6,667,170	19,428,938	33,429,557
Contractual service margin recognised in profit or loss to reflect the transfer of services	9,993,499	0	9,993,499	15,410,353	10,602,928	26,013,281	36,006,780
Release of the risk adjustment for non-financial risk for the risk expired	2,791,290	0	2,791,290	1,782,110	1,253,659	3,035,769	5,827,059
Other	0	0	0	470,735	464,442	935,177	935,177
Premium income relating to the recovery of insurance acquisition cash flows	5,544,132	0	5,544,132	7,967,872	9,061,975	17,029,847	22,573,979
Income recognised under the PAA approach	0	676,864,819	676,864,819	0	0	0	676,864,819
Total insurance revenue recognised in profit or loss	32,329,539	676,864,819	709,194,358	38,392,839	28,050,173	66,443,013	775,637,370
Insurance service expenses recognised in profit and loss
Incurred claims and other insurance service expenses	-6,496,589	-539,291,899	-545,788,488	-13,754,753	-5,217,847	-18,972,600	-564,761,089
Insurance service operating expenses	-8,096,330	-157,631,453	-165,727,783	-10,835,244	-12,666,859	-23,502,103	-189,229,885
Acquisition costs	-5,544,132	-108,668,783	-114,212,914	-7,967,872	-9,061,975	-17,029,847	-131,242,761
Losses/reversal of losses on onerous contracts	-151,260	8,546,662	8,395,402	1,441,836	771,338	2,213,174	10,608,576
Administration costs	-2,400,938	-57,509,332	-59,910,271	-4,309,208	-4,376,222	-8,685,430	-68,595,700
Other insurance service operating expenses	0	0	0	0	0	0	0
Total insurance service expenses recognised in profit or loss	-14,592,919	-696,923,352	-711,516,271	-24,589,997	-17,884,706	-42,474,703	-753,990,974
Net insurance revenue/insurance service expenses recognised in profit or loss	17,736,620	-20,058,533	-2,321,913	13,802,842	10,165,467	23,968,310	21,646,396
Insurance finance income/expenses
Effect of changes in interest rates and other financial assumptions	-1,370,610	-12,507,040	-13,877,650	-18,207,027	0	-18,207,027	-32,084,678
Interest accreted using current financial asumptions	0	0	0	-3,638,454	0	-3,638,454	-3,638,454
Interest accreted at the locked-in interest rate	-84,698	-2,930,574	-3,015,273	-14,652,674	-134,223	-14,786,897	-17,802,170
Changes in the fair value of the portfolio of insurance contracts with direct participation features	0	0	0	0	-46,417,854	-46,417,854	-46,417,854
Total net insurance finance income/expenses	-1,455,308	-15,437,615	-16,892,923	-36,498,155	-46,552,077	-83,050,233	-99,943,156

308

							in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2023	NON-LIFE			LIFE			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Net insurance finance income/expenses
Net insurance finance income/expenses recognised in profit or loss	-84,698	-2,930,574	-3,015,273	-13,326,601	-46,552,077	-59,878,679	-62,893,952
Net insurance finance income/expenses recognised in other comprehensive income	-1,370,610	-12,507,040	-13,877,650	-23,171,554	0	-23,171,554	-37,049,204
Total net insurance finance income/expenses	-1,455,308	-15,437,615	-16,892,923	-36,498,155	-46,552,077	-83,050,233	-99,943,156

							in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2022	NON-LIFE			LIFE			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Insurance revenue recognised in profit or loss
Amounts relating to changes in liabilities for the remaining coverage	23,536,971	0	23,536,971	28,841,325	15,641,636	44,482,961	68,019,932
Expected cash flows from claims and other insurance services	13,426,263	0	13,426,263	12952236,44	6014307,968	18,966,544	32,392,807
Contractual service margin recognised in profit or loss to reflect the transfer of services	7,480,577	0	7,480,577	13,903,253	8,179,049	22,082,302	29,562,880
Release of the risk adjustment for non-financial risk for the risk expired	2,630,131	0	2,630,131	1,823,682	1,256,012	3,079,694	5,709,825
Other	0	0	0	162,153	192,267	354,420	354,420
Premium income relating to the recovery of insurance acquisition cash flows	4,267,610	0	4,267,610	8,237,724	9,278,116	17,515,840	21,783,450
Income recognised under the PAA approach	0	600,400,841	600,400,841	0	0	0	600,400,841
Total insurance revenue recognised in profit or loss	27,804,581	600,400,841	628,205,422	37,079,049	24,919,752	61,998,801	690,204,222
Insurance service expenses recognised in profit and loss
Incurred claims and other insurance service expenses	-1,678,365	-378,878,691	-380,557,056	-13,202,458	-4,319,271	-17,521,729	-398,078,786
Insurance service operating expenses	-7,074,942	-144,041,412	-151,116,354	-15,278,140	-14,061,103	-29,339,243	-180,455,597
Acquisition costs	-4,267,610	-96,468,571	-100,736,181	-8,237,724	-9,278,116	-17,515,840	-118,252,021
Losses/reversal of losses on onerous contracts	-714,693	-3,532,781	-4,247,474	-2,439,338	-1,268,270	-3,707,608	-7,955,082
Administration costs	-2,092,640	-44,040,059	-46,132,699	-4,601,079	-3,514,717	-8,115,795	-54,248,494
Other insurance service operating expenses	0	0	0	0	0	0	0
Total insurance service expenses recognised in profit or loss	-8,753,307	-522,920,103	-531,673,410	-28,480,598	-18,380,374	-46,860,972	-578,534,383
Net insurance revenue/insurance service expenses recognised in profit or loss	19,051,274	77,480,738	96,532,012	8,598,450	6,539,378	15,137,828	111,669,840
Insurance finance income/expenses
Effect of changes in interest rates and other financial assumptions	2,663,138	37,464,219	40,127,356	74,877,516	0	74,877,516	115,004,872
Interest accreted using current financial asumptions	0	0	0	12,065,846	0	12,065,846	12,065,846
Interest accreted at the locked-in interest rate	-61,961	13,387	-48,574	27,982,371	116,843	28,099,214	28,050,640
Changes in the fair value of the portfolio of insurance contracts with direct participation features	0	0	0	0	73,820,870	73,820,870	73,820,870
Total net insurance finance income/expenses	2,601,177	37,477,605	40,078,782	114,925,733	73,937,714	188,863,446	228,942,229

309

							in EUR
BREAKODOWN OF INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES FOR 2022	NON-LIFE			LIFE			TOTAL
	General model (BBA)	Premium allocation approach (PAA)	Total	General model (BBA)	Variable fee approach (VFA)	Total
Net insurance finance income/expenses
Net insurance finance income/expenses recognised in profit or loss	-61,960	13,387	-48,574	3,950,577	73,937,714	77,888,291	77,839,717
Net insurance finance income/expenses recognised in other comprehensive income	2,663,138	37,464,219	40,127,356	110,975,156	0	110,975,156	151,102,512
Total net insurance finance income/expenses	2,601,177	37,477,605	40,078,782	114,925,733	73,937,714	188,863,446	228,942,229

310

3.1.4

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of the

Triglav Group

				in EUR
General model (BBA)	NON-LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-48,942,758	-1,981,216	1,106,188	-49,817,786
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-48,942,758	-1,981,216	1,106,188	-49,817,786
Changes in profit or loss and/or other comprehensive income	25,765,927	-339,047	-9,108,835	16,318,045
Insurance revenue
Contracts under the modified retrospective approach	949,044	0	0	949,044
Contracts under the fair value approach	0	0	0	0
Other contracts	33,193,608	0	0	33,193,608
Total insurance revenue	34,142,652	0	0	34,142,652
Insurance service expenses
Incurred claims	0	1,205,188	-9,297,990	-8,092,802
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	1,205,188	-15,576,559	-14,371,371
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	6,278,569	6,278,569
Insurance service operating expenses	-6,634,435	-1,498,013	0	-8,132,448
Amortisation of insurance acquisition cash flows	-6,634,435	0	0	-6,634,435
Changes that relate to future service (i.e. losses on onerous contracts)	0	-1,498,013	0	-1,498,013
Total insurance service expenses	-6,634,435	-292,825	-9,297,990	-16,225,250
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0
Insurance service result	27,508,217	-292,825	-9,297,990	17,917,402
Net insurance finance income/expenses	-1,742,290	-46,222	189,158	-1,599,354
Effect of exchange rate differences	0	0	-3	-3
Cash flows	-24,249,240	0	8,017,588	-16,231,652
Premiums received for insurance contracts issued	-30,795,207	0	0	-30,795,207
Claims and other insurance service expenses paid, including investment components	0	0	8,017,588	8,017,588
Insurance acquisition cash flows	6,545,967	0	0	6,545,967
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-47,426,071	-2,320,263	14,941	-49,731,393
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-47,426,071	-2,320,263	14,941	-49,731,395

311

				in EUR
General model (BBA)	NON-LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-48,802,136	-1,254,416	-1,134,197	-51,190,749
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-48,802,136	-1,254,416	-1,134,197	-51,190,749
Changes in profit or loss and/or other comprehensive income	27,851,834	-726,800	-4,832,875	22,292,159
Insurance revenue
Contracts under the modified retrospective approach	1,348,112	0	0	1,348,112
Contracts under the fair value approach	0	0	0	0
Other contracts	28,582,958	0	0	28,582,958
Total insurance revenue	29,931,070	0	0	29,931,070
Insurance service expenses
Incurred claims	0	813,065	-4,480,569	-3,667,504
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	813,065	-12,862,511	-12,049,446
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	8,381,942	8,381,942
Insurance service operating expenses	-5,295,818	-1,527,749	0	-6,823,567
Amortisation of insurance acquisition cash flows	-5,295,818	0	0	-5,295,818
Changes that relate to future service (i.e. losses on onerous contracts)	0	-1,527,749	0	-1,527,749
Total insurance service expenses	-5,295,818	-714,684	-4,480,569	-10,491,071
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0
Insurance service result	24,635,252	-714,684	-4,480,569	19,439,999
Net insurance finance income/expenses	3,208,325	-12,116	-352,515	2,843,694
Effect of exchange rate differences	8,257	0	209	8,466
Cash flows	-27,992,456	0	7,073,260	-20,919,196
Premiums received for insurance contracts issued	-35,129,867	0	0	-35,129,867
Claims and other insurance service expenses paid, including investment components	0	0	7,073,260	7,073,260
Insurance acquisition cash flows	7,137,411	0	0	7,137,411
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-48,942,758	-1,981,216	1,106,188	-49,817,786
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-48,942,758	-1,981,216	1,106,188	-49,817,786

312

				in EUR
General model (BBA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-701,327,835	-28,845,103	-23,027,430	-753,200,368
Insurance contract assets	11,814,766	-43,334	-5,613,417	6,158,015
Insurance contract liabilities	-713,142,601	-28,801,769	-17,414,013	-759,358,383
Changes in profit or loss and/or other comprehensive income	104,164,810	811,293	-132,084,166	-27,108,063
Insurance revenue
Contracts under the modified retrospective approach	10,741,743	0	0	10,741,743
Contracts under the fair value approach	5,408,533	0	0	5,408,533
Other contracts	40,052,138	0	0	40,052,138
Total insurance revenue	56,202,414	0	0	56,202,414
Insurance service expenses
Incurred claims	0	2,782,389	-28,982,664	-26,200,275
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	2,782,389	-28,899,078	-26,116,689
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	-83,586	-83,586
Insurance service operating expenses	-13,555,253	-1,703,266	0	-15,258,519
Amortisation of insurance acquisition cash flows	-13,555,253	0	0	-13,555,253
Changes that relate to future service (i.e. losses on onerous contracts)	0	-1,703,266	0	-1,703,266
Total insurance service expenses	-13,555,253	1,079,123	-28,982,664	-41,458,794
Investment components excluded from insurance revenue and insurance service expenses	102,846,524	0	-102,846,526	-2
Insurance service result	145,493,685	1,079,123	-131,829,190	14,743,618
Net insurance finance income/expenses	-41,310,062	-269,807	-255,164	-41,835,033
Effect of exchange rate differences	10,090	1,977	188	12,255
Cash flows	-100,399,871	0	131,135,040	30,735,169
Premiums received for insurance contracts issued	-118,856,139	0	0	-118,856,139
Claims and other insurance service expenses paid, including investment components	0	0	131,135,040	131,135,040
Insurance acquisition cash flows	18,456,268	0	0	18,456,268
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-697,562,891	-28,033,810	-23,976,556	-749,573,257
Insurance contract assets	17,629,498	-173,171	-7,222,167	10,234,160
Insurance contract liabilities	-715,192,389	-27,860,639	-16,754,389	-759,807,417

313

				in EUR
General model (BBA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-859,575,880	-26,047,523	-23,314,653	-908,938,056
Insurance contract assets	19,255,526	-23,041	-4,667,362	14,565,123
Insurance contract liabilities	-878,831,406	-26,024,482	-18,647,291	-923,503,179
Changes in profit or loss and/or other comprehensive income	260,300,173	-2,797,580	-118,089,148	139,413,445
Insurance revenue
Contracts under the modified retrospective approach	12,641,785	0	0	12,641,785
Contracts under the fair value approach	5,014,135	0	0	5,014,135
Other contracts	34,456,314	0	0	34,456,314
Total insurance revenue	52,112,234	0	0	52,112,234
Insurance service expenses
Incurred claims	0	2,504,568	-28,638,640	-26,134,072
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	2,504,568	-29,130,689	-26,626,121
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	492,049	492,049
Insurance service operating expenses	-12,560,819	-5,171,574	0	-17,732,393
Amortisation of insurance acquisition cash flows	-12,560,819	0	0	-12,560,819
Changes that relate to future service (i.e. losses on onerous contracts)	0	-5,171,574	0	-5,171,574
Total insurance service expenses	-12,560,819	-2,667,006	-28,638,640	-43,866,465
Investment components excluded from insurance revenue and insurance service expenses	90,009,641	0	-90,009,642	-1
Insurance service result	129,561,056	-2,667,006	-118,648,282	8,245,768
Net insurance finance income/expenses	130,607,938	-129,019	556,976	131,035,895
Effect of exchange rate differences	133,818	-1,555	2,158	134,421
Cash flows	-102,052,130	0	118,376,371	16,324,241
Premiums received for insurance contracts issued	-119,344,294	0	0	-119,344,294
Claims and other insurance service expenses paid, including investment components	0	0	118,376,371	118,376,371
Insurance acquisition cash flows	17,292,164	0	0	17,292,164
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-701,327,834	-28,845,103	-23,027,430	-753,200,367
Insurance contract assets	11,814,766	-43,334	-5,613,417	6,158,015
Insurance contract liabilities	-713,142,600	-28,801,769	-17,414,013	-759,358,382

314

				in EUR
General model (BBA)	HEALTH
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	336,806	-17,711,764	-334,228	-17,709,186
Insurance contract assets	0	0	0	0
Insurance contract liabilities	336,806	-17,711,764	-334,228	-17,709,186
Changes in profit or loss and/or other comprehensive
income	2,051,826	15,085,140	-2,608,403	14,528,563
Insurance revenue
Contracts under the modified retrospective approach	0	0	0	0
Contracts under the fair value approach	0	0	0	0
Other contracts	2,615,631	0	0	2,615,631
Total insurance revenue	2,615,631	0	0	2,615,631
Insurance service expenses
Incurred claims	0	15,847,762	-2,609,067	13,238,695
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	15,847,762	-2,625,665	13,222,097
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	16,598	16,598
Insurance service operating expenses	-296,626	-741,409	0	-1,038,035
Amortisation of insurance acquisition cash flows	-296,626	0	0	-296,626
Changes that relate to future service (i.e. losses on onerous contracts)	0	-741,409	0	-741,409
Total insurance service expenses	-296,626	15,106,353	-2,609,067	12,200,660
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0
Insurance service result	2,319,005	15,106,353	-2,609,067	14,816,291
Net insurance finance income/expenses	-267,180	-21,212	664	-287,728
Effect of exchange rate differences	1	-1	0	0
Cash flows	-2,644,213	0	2,392,930	-251,283
Premiums received for insurance contracts issued	-2,846,690	0	0	-2,846,690
Claims and other insurance service expenses paid, including investment components	0	0	2,392,930	2,392,930
Insurance acquisition cash flows	202,477	0	0	202,477
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-255,581	-2,626,624	-549,701	-3,431,906
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-255,581	-2,626,624	-549,701	-3,431,906

315

				in EUR
General model (BBA)	HEALTH
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-192,222	-26,669,634	-3,671,872	-30,533,728
Insurance contract assets	99,798	-3	-14,956	84,839
Insurance contract liabilities	-292,020	-26,669,631	-3,656,916	-30,618,567
Changes in profit or loss and/or other comprehensive income	2,539,467	8,957,870	-2,425,093	9,072,244
Insurance revenue
Contracts under the modified retrospective approach	0	0	0	0
Contracts under the fair value approach	0	0	0	0
Other contracts	2,445,256	0	0	2,445,256
Total insurance revenue	2,445,256	0	0	2,445,256
Insurance service expenses
Incurred claims	0	23,245,696	-2,449,544	20,796,152
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	23,245,696	-5,812,109	17,433,587
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	3,362,565	3,362,565
Insurance service operating expenses	-251,992	-14,358,422	0	-14,610,414
Amortisation of insurance acquisition cash flows	-251,992	0	0	-251,992
Changes that relate to future service (i.e. losses on onerous contracts)	0	-14,358,422	0	-14,358,422
Total insurance service expenses	-251,992	8,887,274	-2,449,544	6,185,738
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0
Insurance service result	2,193,264	8,887,274	-2,449,544	8,630,994
Net insurance finance income/expenses	346,205	70,595	24,451	441,251
Effect of exchange rate differences	-2	1	0	-1
Cash flows	-2,010,439	0	5,762,737	3,752,298
Premiums received for insurance contracts issued	-2,281,496	0	0	-2,281,496
Claims and other insurance service expenses paid, including investment components	0	0	5,762,737	5,762,737
Insurance acquisition cash flows	271,057	0	0	271,057
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	336,806	-17,711,764	-334,228	-17,709,186
Insurance contract assets	0	0	0	0
Insurance contract liabilities	336,806	-17,711,764	-334,228	-17,709,186

316

					in EUR
PREMIUM ALLOCATION APPROACH (PAA)	NON-LIFE
	Remaining coverage		Incurred claims		TOTAL
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non- financial risk
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-115,907,607	-11,282,398	-565,295,441	-52,054,173	-744,539,619
Insurance contract assets	9,069,865	-16,373	-1,951,167	-126,445	6,975,880
Insurance contract liabilities	-124,977,472	-11,266,025	-563,344,274	-51,927,728	-751,515,499
Changes in profit or loss and/or other comprehensive income	859,503,948	6,094,285	-885,385,920	5,061,191	-14,726,496
Insurance revenue	1,022,018,270	0	0	0	1,022,018,270
Insurance service expenses
Incurred claims	0	0	-860,276,387	7,172,324	-853,104,063
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	0	-849,240,206	-23,754,219	-872,994,425
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	-11,036,181	30,926,543	19,890,362
Insurance service operating expenses	-165,715,772	6,094,075	0	0	-159,621,697
Amortisation of insurance acquisition cash flows	-165,715,772	0	0	0	-165,715,772
Changes that relate to future service (i.e. losses on onerous contracts)	0	6,094,075	0	0	6,094,075
Total insurance service expenses	-165,715,772	6,094,075	-860,276,387	7,172,324	-1,012,725,760
Investment components excluded from insurance revenue and insurance service expenses	3,183,018	0	-3,183,018	0	0
Insurance service result	856,302,498	6,094,075	-860,276,387	7,172,324	9,292,510
Net insurance finance income/expenses	0	0	-21,966,527	-2,112,962	-24,079,489
Effect of exchange rate differences	3,201,450	210	-3,143,006	1,829	60,483
Cash flows	-871,138,760	0	701,410,372	0	-169,728,388
Premiums received for insurance contracts issued	-1,044,184,874	0	0	0	-1,044,184,874
Claims and other insurance service expenses paid, including investment components	0	0	701,410,372	0	701,410,372
Insurance acquisition cash flows	173,046,114	0	0	0	173,046,114
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-127,542,419	-5,188,113	-749,270,991	-46,992,982	-928,994,505
Insurance contract assets	3,628,359	6,861	-1,696,902	-79,500	1,858,818
Insurance contract liabilities	-131,170,778	-5,194,974	-747,574,089	-46,913,482	-930,853,323

317

					in EUR
PREMIUM ALLOCATION APPROACH (PAA)	NON-LIFE
	Remaining coverage		Incurred claims		TOTAL
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non- financial risk
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-102,857,115	-6,894,658	-527,836,219	-46,826,925	-684,414,917
Insurance contract assets	2,663,887	-2,713	-334,569	-2,814	2,323,791
Insurance contract liabilities	-105,521,002	-6,891,945	-527,501,650	-46,824,111	-686,738,708
Changes in profit or loss and/or other comprehensive income	750,636,293	-4,387,740	-553,863,169	-5,227,248	187,158,136
Insurance revenue	893,600,158	0	0	0	893,600,158
Insurance service expenses
Incurred claims	0	0	-597,000,015	-8,260,099	-605,260,114
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	0	-569,776,068	-23,451,591	-593,227,659
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	-27,223,947	15,191,492	-12,032,455
Insurance service operating expenses	-145,905,236	-4,389,208	0	0	-150,294,444
Amortisation of insurance acquisition cash flows	-145,905,236	0	0	0	-145,905,236
Changes that relate to future service (i.e. losses on onerous contracts)	0	-4,389,208	0	0	-4,389,208
Total insurance service expenses	-145,905,236	-4,389,208	-597,000,015	-8,260,099	-755,554,558
Investment components excluded from insurance revenue and insurance service expenses	2,918,597	0	-2,918,597	0	0
Insurance service result	747,694,922	-4,389,208	-597,000,015	-8,260,099	138,045,600
Net insurance finance income/expenses	0	0	45,956,805	3,015,290	48,972,095
Effect of exchange rate differences	2,941,371	1,468	-2,819,959	17,561	140,441
Cash flows	-763,686,787	0	516,403,919	0	-247,282,868
Premiums received for insurance contracts issued	-915,119,086	0	0	0	-915,119,086
Claims and other insurance service expenses paid, including investment components	0	0	516,403,919	0	516,403,919
Insurance acquisition cash flows	151,432,299	0	0	0	151,432,299
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-115,907,609	-11,282,398	-565,295,441	-52,054,173	-744,539,621
Insurance contract assets	9,069,864	-16,373	-1,951,217	-126,395	6,975,879
Insurance contract liabilities	-124,977,473	-11,266,025	-563,344,224	-51,927,778	-751,515,500

318

					in EUR
PREMIUM ALLOCATION APPROACH (PAA)	HEALTH
	Remaining coverage		Incurred claims		TOTAL
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non- financial risk
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	1,062,050	-185,164	-23,775,280	-2,846,913	-25,745,307
Insurance contract assets	0	0	0	0	0
Insurance contract liabilities	1,062,050	-185,164	-23,775,280	-2,846,913	-25,745,307
Changes in profit or loss and/or other comprehensive income	202,508,503	-2,472,904	-238,339,811	-1,497,362	-39,801,574
Insurance revenue	207,042,244	0	0	0	207,042,244
Insurance service expenses
Incurred claims	0	0	-238,236,180	-1,486,060	-239,722,240
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	0	-238,593,199	-4,324,870	-242,918,069
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	357,019	2,838,810	3,195,829
Insurance service operating expenses	-4,533,743	-2,472,905	0	0	-7,006,648
Amortisation of insurance acquisition cash flows	-4,533,743	0	0	0	-4,533,743
Changes that relate to future service (i.e. losses on onerous contracts)	0	-2,472,905	0	0	-2,472,905
Total insurance service expenses	-4,533,743	-2,472,905	-238,236,180	-1,486,060	-246,728,888
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0	0
Insurance service result	202,508,501	-2,472,905	-238,236,180	-1,486,060	-39,686,644
Net insurance finance income/expenses	0	0	-103,630	-11,301	-114,931
Effect of exchange rate differences	2	1	-1	-1	1
Cash flows	-202,047,226	0	236,904,370	0	34,857,144
Premiums received for insurance contracts issued	-206,339,951	0	0	0	-206,339,951
Claims and other insurance service expenses paid, including investment components	0	0	236,904,370	0	236,904,370
Insurance acquisition cash flows	4,292,725	0	0	0	4,292,725
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	1,523,327	-2,658,068	-25,210,719	-4,344,275	-30,689,735
Insurance contract assets	1,894	0	-630	-364	900
Insurance contract liabilities	1,521,433	-2,658,068	-25,210,089	-4,343,911	-30,690,635

319

					in EUR
PREMIUM ALLOCATION APPROACH (PAA)			HEALTH
	Remaining coverage		Incurred claims		TOTAL
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	1,898,193	-1,461,971	-18,453,543	-2,489,256	-20,506,577
Insurance contract assets	4,497	0	-2,631	-132	1,734
Insurance contract liabilities	1,893,696	-1,461,971	-18,450,912	-2,489,124	-20,508,311
Changes in profit or loss and/or other comprehensive income	197,770,650	1,276,807	-204,846,610	-357,657	-6,156,810
Insurance revenue	202,539,614	0	0	0	202,539,614
Insurance service expenses
Incurred claims	0	0	-204,874,462	-361,376	-205,235,838
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	0	-205,872,701	-2,647,695	-208,520,396
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	998,239	2,286,319	3,284,558
Insurance service operating expenses	-4,768,963	1,276,807	0	0	-3,492,156
Amortisation of insurance acquisition cash flows	-4,768,963	0	0	0	-4,768,963
Changes that relate to future service (i.e. losses on onerous contracts)	0	1,276,807	0	0	1,276,807
Total insurance service expenses	-4,768,963	1,276,807	-204,874,462	-361,376	-208,727,994
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0	0
Insurance service result	197,770,651	1,276,807	-204,874,462	-361,376	-6,188,380
Net insurance finance income/expenses	0	0	27,851	3,717	31,568
Effect of exchange rate differences	-1	0	1	2	2
Cash flows	-198,606,793	0	199,524,874	0	918,081
Premiums received for insurance contracts issued	-203,100,498	0	0	0	-203,100,498
Claims and other insurance service expenses paid, including investment components	0	0	199,524,874	0	199,524,874
Insurance acquisition cash flows	4,493,705	0	0	0	4,493,705
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	1,062,050	-185,164	-23,775,280	-2,846,913	-25,745,307
Insurance contract assets	0	0	0	0	0
Insurance contract liabilities	1,062,050	-185,164	-23,775,280	-2,846,913	-25,745,307

320

				in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-468,769,964	-2,297,618	-9,109,713	-480,177,295
Insurance contract assets	17,472	-13,642	0	3,830
Insurance contract liabilities	-468,787,436	-2,283,976	-9,109,713	-480,181,125
Changes in profit or loss and/or other comprehensive income	28,772,418	1,336,321	-69,753,824	-39,645,085
Insurance revenue
Contracts under the modified retrospective approach	8,395,738	0	0	8,395,738
Contracts under the fair value approach	1,196,176	0	0	1,196,176
Other contracts	19,572,192	0	0	19,572,192
Total insurance revenue	29,164,106	0	0	29,164,106
Insurance service expenses
Incurred claims	0	163,452	-10,205,879	-10,042,427
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	163,452	-10,873,854	-10,710,402
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	667,975	667,975
Insurance service operating expenses	-9,448,127	1,172,859	0	-8,275,268
Amortisation of insurance acquisition cash flows	-9,448,127	0	0	-9,448,127
Changes that relate to future service (i.e. losses on onerous contracts)	0	1,172,859	0	1,172,859
Total insurance service expenses	-9,448,127	1,336,311	-10,205,879	-18,317,695
Investment components excluded from insurance revenue and insurance service expenses	59,410,768	0	-59,410,768	0
Insurance service result	79,126,747	1,336,311	-69,616,647	10,846,411
Net insurance finance income/expenses	-50,356,979	0	-137,177	-50,494,156
Effect of exchange rate differences	2,650	10	2	2,662
Cash flows	-104,668,950	0	68,359,496	-36,309,454
Premiums received for insurance contracts issued	-119,628,972	0	0	-119,628,972
Claims and other insurance service expenses paid, including investment components	0	0	68,359,496	68,359,496
Insurance acquisition cash flows	14,960,022	0	0	14,960,022
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-544,666,496	-961,297	-10,504,041	-556,131,834
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-544,666,496	-961,297	-10,504,041	-556,131,834

321

				in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-522,549,932	-297,865	-9,363,656	-532,211,453
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-522,549,932	-297,865	-9,363,656	-532,211,453
Changes in profit or loss and/or other comprehensive income	146,623,580	-1,999,754	-59,649,137	84,974,689
Insurance revenue
Contracts under the modified retrospective approach	9,049,671	0	0	9,049,671
Contracts under the fair value approach	786,497	0	0	786,497
Other contracts	16,136,885	0	0	16,136,885
Total insurance revenue	25,973,053	0	0	25,973,053
Insurance service expenses
Incurred claims	0	378,007	-8,141,166	-7,763,159
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	378,007	-9,208,120	-8,830,113
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	1,066,954	1,066,954
Insurance service operating expenses	-9,664,794	-2,377,735	0	-12,042,529
Amortisation of insurance acquisition cash flows	-9,664,794	0	0	-9,664,794
Changes that relate to future service (i.e. losses on onerous contracts)	0	-2,377,735	0	-2,377,735
Total insurance service expenses	-9,664,794	-1,999,728	-8,141,166	-19,805,688
Investment components excluded from insurance revenue and insurance service expenses	51,631,979	0	-51,631,979	0
Insurance service result	67,940,238	-1,999,728	-59,773,145	6,167,365
Net insurance finance income/expenses	78,627,342	0	122,809	78,750,151
Effect of exchange rate differences	56,000	-26	1,198	57,172
Cash flows	-92,843,613	0	59,903,081	-32,940,532
Premiums received for insurance contracts issued	-106,892,379	0	0	-106,892,379
Claims and other insurance service expenses paid, including investment components	0	0	59,903,081	59,903,081
Insurance acquisition cash flows	14,048,766	0	0	14,048,766
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-468,769,965	-2,297,619	-9,109,712	-480,177,296
Insurance contract assets	17,472	-13,642	0	3,830
Insurance contract liabilities	-468,787,437	-2,283,977	-9,109,712	-480,181,126

322

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of

Zavarovalnica Triglav

				in EUR
General model (BBA)	NON-LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-45,692,874	-1,981,225	1,150,002	-46,524,097
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-45,692,874	-1,981,225	1,150,002	-46,524,097
Changes in profit or loss and/or other comprehensive income	25,186,880	-197,482	-8,708,087	16,281,311
Insurance revenue
Contracts under the modified retrospective approach	949,050	0	0	949,050
Contracts under the fair value approach	0	0	0	0
Other contracts	31,380,488	0	0	31,380,488
Total insurance revenue	32,329,539	0	0	32,329,539
Insurance service expenses
Incurred claims	0	1,101,210	-8,897,528	-7,796,317
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	1,101,210	-15,208,167	-14,106,956
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	6,310,639	6,310,639
Insurance service operating expenses	-5,544,132	-1,252,470	0	-6,796,602
Amortisation of insurance acquisition cash flows	-5,544,132	0	0	-5,544,132
Changes that relate to future service (i.e. losses on onerous contracts)	0	-1,252,470	0	-1,252,470
Total insurance service expenses	-5,544,132	-151,260	-8,897,528	-14,592,919
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0
Insurance service result	26,785,407	-151,260	-8,897,528	17,736,620
Net insurance finance income/expenses	-1,598,527	-46,222	189,441	-1,455,308
Cash flows	-24,245,730	0	7,588,765	-16,656,965
Premiums received for insurance contracts issued	-30,104,974	0	0	-30,104,974
Claims and other insurance service expenses paid, including investment components	0	0	7,588,765	7,588,765
Insurance acquisition cash flows	5,859,244	0	0	5,859,244
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-44,751,725	-2,178,707	30,680	-46,899,751
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-44,751,725	-2,178,707	30,680	-46,899,751

323

				in EUR
General model (BBA)	NON-LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-45,511,981	-1,254,416	-1,051,896	-47,818,293
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-45,511,981	-1,254,416	-1,051,896	-47,818,293
Changes in profit or loss and/or other comprehensive income	26,503,318	-726,809	-4,124,059	21,652,451
Insurance revenue
Contracts under the modified retrospective approach	1,348,121	0	0	1,348,121
Contracts under the fair value approach	0	0	0	0
Other contracts	26,456,460	0	0	26,456,460
Total insurance revenue	27,804,581	0	0	27,804,581
Insurance service expenses
Incurred claims	0	813,056	-3,771,005	-2,957,949
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	813,056	-12,161,268	-11,348,213
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	8,390,264	8,390,264
Insurance service operating expenses	-4,267,610	-1,527,749	0	-5,795,358
Amortisation of insurance acquisition cash flows	-4,267,610	0	0	-4,267,610
Changes that relate to future service (i.e. losses on onerous contracts)	0	-1,527,749	0	-1,527,749
Total insurance service expenses	-4,267,610	-714,693	-3,771,005	-8,753,307
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0
Insurance service result	23,536,971	-714,693	-3,771,005	19,051,274
Net insurance finance income/expenses	2,966,347	-12,116	-353,054	2,601,177
Cash flows	-26,684,212	0	6,325,957	-20,358,255
Premiums received for insurance contracts issued	-32,211,346	0	0	-32,211,346
Claims and other insurance service expenses paid, including investment components	0	0	6,325,957	6,325,957
Insurance acquisition cash flows	5,527,134	0	0	5,527,134
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-45,692,874	-1,981,225	1,150,002	-46,524,097
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-45,692,874	-1,981,225	1,150,002	-46,524,097

324

				in EUR
General model (BBA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-626,216,861	-22,943,777	-20,609,803	-669,770,440
Insurance contract assets	11,611,742	-20,243	-5,519,973	6,071,526
Insurance contract liabilities	-637,828,602	-22,923,534	-15,089,830	-675,841,966
Changes in profit or loss and/or other comprehensive income	86,702,093	1,246,356	-110,643,762	-22,695,313
Insurance revenue
Contracts under the modified retrospective approach	10,741,743	0	0	10,741,743
Contracts under the fair value approach	4,352,602	0	0	4,352,602
Other contracts	23,298,495	0	0	23,298,495
Total insurance revenue	38,392,839	0	0	38,392,839
Insurance service expenses
Incurred claims	0	965,172	-18,063,961	-17,098,789
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	965,172	-19,431,700	-18,466,528
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	1,367,740	1,367,740
Insurance service operating expenses	-7,967,872	476,664	0	-7,491,208
Amortisation of insurance acquisition cash flows	-7,967,872	0	0	-7,967,872
Changes that relate to future service (i.e. losses on onerous contracts)	0	476,664	0	476,664
Total insurance service expenses	-7,967,872	1,441,836	-18,063,961	-24,589,997
Investment components excluded from insurance revenue and insurance service expenses	92,331,494	0	-92,331,494	0
Insurance service result	122,756,460	1,441,836	-110,395,454	13,802,842
Net insurance finance income/expenses	-36,054,367	-195,480	-248,308	-36,498,155
Cash flows	-72,583,628	0	109,997,231	37,413,603
Premiums received for insurance contracts issued	-83,173,821	0	0	-83,173,821
Claims and other insurance service expenses paid, including investment components	0	0	109,997,231	109,997,231
Insurance acquisition cash flows	10,590,192	0	0	10,590,192
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-612,098,395	-21,697,421	-21,256,334	-655,052,150
Insurance contract assets	17,580,116	-170,258	-7,214,873	10,194,985
Insurance contract liabilities	-629,678,511	-21,527,162	-14,041,461	-665,247,135

325

				in EUR
General model (BBA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-776,898,225	-20,376,116	-21,020,082	-818,294,423
Insurance contract assets	18,938,073	-23,019	-4,639,654	14,275,401
Insurance contract liabilities	-795,836,298	-20,353,097	-16,380,429	-832,569,824
Changes in profit or loss and/or other comprehensive income	225,003,379	-2,567,661	-98,911,535	123,524,183
Insurance revenue
Contracts under the modified retrospective approach	12,641,784	0	0	12,641,784
Contracts under the fair value approach	3,909,170	0	0	3,909,170
Other contracts	20,528,094	0	0	20,528,094
Total insurance revenue	37,079,049	0	0	37,079,049
Insurance service expenses
Incurred claims	0	932,710	-17,803,537	-16,870,827
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	932,710	-19,558,471	-18,625,761
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	1,754,934	1,754,934
Insurance service operating expenses	-8,237,724	-3,372,048	0	-11,609,771
Amortisation of insurance acquisition cash flows	-8,237,724	0	0	-8,237,724
Changes that relate to future service (i.e. losses on onerous contracts)	0	-3,372,048	0	-3,372,048
Total insurance service expenses	-8,237,724	-2,439,338	-17,803,537	-28,480,598
Investment components excluded from insurance revenue and insurance service expenses	81,628,347	0	-81,628,347	0
Insurance service result	110,469,671	-2,439,338	-99,431,883	8,598,450
Net insurance finance income/expenses	114,533,708	-128,323	520,348	114,925,733
Cash flows	-74,322,015	0	99,321,815	24,999,799
Premiums received for insurance contracts issued	-84,344,028	0	0	-84,344,028
Claims and other insurance service expenses paid, including investment components	0	0	99,321,815	99,321,815
Insurance acquisition cash flows	10,022,013	0	0	10,022,013
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-626,216,861	-22,943,777	-20,609,803	-669,770,440
Insurance contract assets	11,611,742	-20,243	-5,519,973	6,071,526
Insurance contract liabilities	-637,828,602	-22,923,534	-15,089,830	-675,841,966

326

					in EUR
PREMIUM ALLOCATION APPROACH (PAA)
	NON-LIFE
	Remaining coverage		Incurred claims		TOTAL
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non- financial risk
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-91,118,923	-10,939,181	-368,808,105	-32,896,433	-503,762,643
Insurance contract assets	6,323,803	-11,548	-4,314,241	-674,061	1,323,954
Insurance contract liabilities	-97,442,727	-10,927,634	-364,493,864	-32,222,373	-505,086,597
Changes in profit or loss and/or other comprehensive income	568,196,036	8,546,662	-618,809,858	6,571,011	-35,496,148
Insurance revenue	676,864,819	0	0	0	676,864,819
Insurance service expenses
Incurred claims	0	0	-604,707,530	7,906,299	-596,801,231
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	0	-612,219,939	-13,791,413	-626,011,352
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	7,512,408	21,697,712	29,210,120
Insurance service operating expenses	-108,668,783	8,546,662	0	0	-100,122,121
Amortisation of insurance acquisition cash flows	-108,668,783	0	0	0	-108,668,783
Changes that relate to future service (i.e. losses on onerous contracts)	0	8,546,662	0	0	8,546,662
Total insurance service expenses	-108,668,783	8,546,662	-604,707,530	7,906,299	-696,923,352
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0	0
Insurance service result	568,196,036	8,546,662	-604,707,530	7,906,299	-20,058,533
Net insurance finance income/expenses	0	0	-14,102,328	-1,335,287	-15,437,615
Cash flows	-595,988,152	0	494,329,311	0	-101,658,841
Premiums received for insurance contracts issued	-710,326,057	0	0	0	-710,326,057
Claims and other insurance service expenses paid, including investment components	0	0	494,329,311	0	494,329,311
Insurance acquisition cash flows	114,337,905	0	0	0	114,337,905
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-118,911,039	-2,392,519	-493,288,652	-26,325,422	-640,917,632
Insurance contract assets	1,648,566	-2,364	-870,401	-11,959	763,841
Insurance contract liabilities	-120,559,605	-2,390,155	-492,418,251	-26,313,463	-641,681,473

327

					in EUR
PREMIUM ALLOCATION APPROACH (PAA)
	NON-LIFE
	Remaining coverage		Incurred claims		TOTAL
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non- financial risk
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-83,543,232	-7,406,400	-322,224,333	-26,728,761	-439,902,725
Insurance contract assets	1,462,074	-12,767	-561,859	23,501	910,948
Insurance contract liabilities	-85,005,305	-7,393,632	-321,662,474	-26,752,262	-440,813,673
Changes in profit or loss and/or other comprehensive income	503,932,270	-3,532,781	-379,273,472	-6,167,673	114,958,343
Insurance revenue	600,400,841	0	0	0	600,400,841
Insurance service expenses
Incurred claims	0	0	-414,835,979	-8,082,772	-422,918,750
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	0	-394,061,465	-15,613,765	-409,675,230
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	-20,774,513	7,530,993	-13,243,521
Insurance service operating expenses	-96,468,571	-3,532,781	0	0	-100,001,353
Amortisation of insurance acquisition cash flows	-96,468,571	0	0	0	-96,468,571
Changes that relate to future service (i.e. losses on onerous contracts)	0	-3,532,781	0	0	-3,532,781
Total insurance service expenses	-96,468,571	-3,532,781	-414,835,979	-8,082,772	-522,920,103
Investment components excluded from insurance revenue and insurance service expenses	0	0	0	0	0
Insurance service result	503,932,270	-3,532,781	-414,835,979	-8,082,772	77,480,738
Net insurance finance income/expenses	0	0	35,562,506	1,915,099	37,477,605
Cash flows	-511,507,962	0	332,689,701	0	-178,818,261
Premiums received for insurance contracts issued	-609,741,350	0	0	0	-609,741,350
Claims and other insurance service expenses paid, including investment components	0	0	332,689,701	0	332,689,701
Insurance acquisition cash flows	98,233,389	0	0	0	98,233,389
Closing balance of net insurance contract assets/liabilities as at 31 Ddecember 2022	-91,118,923	-10,939,181	-368,808,105	-32,896,433	-503,762,643
Insurance contract assets	6,323,803	-11,548	-4,314,241	-674,061	1,323,954
Insurance contract liabilities	-97,442,727	-10,927,634	-364,493,864	-32,222,373	-505,086,597

328

				in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-450,557,148	-1,565,508	-8,835,951	-460,958,607
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-450,557,148	-1,565,508	-8,835,951	-460,958,607
Changes in profit or loss and/or other comprehensive income	30,189,615	771,338	-67,347,564	-36,386,610
Insurance revenue
Contracts under the modified retrospective approach	8,395,737	0	0	8,395,737
Contracts under the fair value approach	976,232	0	0	976,232
Other contracts	18,678,204	0	0	18,678,204
Total insurance revenue	28,050,173	0	0	28,050,173
Insurance service expenses
Incurred claims	0	139,146	-9,594,070	-9,454,923
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	139,146	-10,197,588	-10,058,442
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	603,519	603,519
Insurance service operating expenses	-9,061,975	632,192	0	-8,429,783
Amortisation of insurance acquisition cash flows	-9,061,975	0	0	-9,061,975
Changes that relate to future service (i.e. losses on onerous contracts)	0	632,192	0	632,192
Total insurance service expenses	-9,061,975	771,338	-9,594,070	-17,884,706
Investment components excluded from insurance revenue and insurance service expenses	57,619,270	0	-57,619,270	0
Insurance service result	76,607,469	771,338	-67,213,340	10,165,467
Net insurance finance income/expenses	-46,417,854	0	-134,223	-46,552,077
Cash flows	-100,491,649	0	65,991,432	-34,500,217
Premiums received for insurance contracts issued	-114,614,716	0	0	-114,614,716
Claims and other insurance service expenses paid, including investment components	0	0	65,991,432	65,991,432
Insurance acquisition cash flows	14,123,067	0	0	14,123,067
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-520,859,182	-794,170	-10,192,082	-531,845,434
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-520,859,182	-794,170	-10,192,082	-531,845,434

329

				in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
	Remaining coverage		Incurred claims	TOTAL
	Excluding the loss component	Loss component
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-500,299,268	-297,238	-8,889,611	-509,486,117
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-500,299,268	-297,238	-8,889,611	-509,486,117
Changes in profit or loss and/or other comprehensive income	139,048,207	-1,268,270	-57,302,845	80,477,091
Insurance revenue
Contracts under the modified retrospective approach	9,049,671	0	0	9,049,671
Contracts under the fair value approach	599,706	0	0	599,706
Other contracts	15,270,374	0	0	15,270,374
Total insurance revenue	24,919,752	0	0	24,919,752
Insurance service expenses
Incurred claims	0	252,607	-7,833,988	-7,581,381
Incurred claims (excluding investment components) and other incurred insurance service expenses	0	252,607	-8,689,243	-8,436,636
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims)	0	0	855,255	855,255
Insurance service operating expenses	-9,278,116	-1,520,877	0	-10,798,993
Amortisation of insurance acquisition cash flows	-9,278,116	0	0	-9,278,116
Changes that relate to future service (i.e. losses on onerous contracts)	0	-1,520,877	0	-1,520,877
Total insurance service expenses	-9,278,116	-1,268,270	-7,833,988	-18,380,374
Investment components excluded from insurance revenue and insurance service expenses	49,585,701	0	-49,585,701	0
Insurance service result	65,227,337	-1,268,270	-57,419,689	6,539,378
Net insurance finance income/expenses	73,820,870	0	116,843	73,937,714
Cash flows	-89,306,087	0	57,356,506	-31,949,581
Premiums received for insurance contracts issued	-102,655,230	0	0	-102,655,230
Claims and other insurance service expenses paid, including investment components	0	0	57,356,506	57,356,506
Insurance acquisition cash flows	13,349,143	0	0	13,349,143
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-450,557,148	-1,565,508	-8,835,951	-460,958,607
Insurance contract assets	0	0	0	0
Insurance contract liabilities	-450,557,148	-1,565,508	-8,835,951	-460,958,607

330

3.1.5

The present value of expected cash flows, risk adjustment for non-financial risk and

contractual service margin

The present value of expected cash flows, risk adjustment for non-financial risk and contractual

service margin of the Triglav Group

							in EUR
GENERAL MODEL (BBA)	NON-LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-27,876,324	-5,736,862	-617,898	0	-15,586,703	-16,204,601	-49,817,787
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-27,876,324	-5,736,862	-617,898	0	-15,586,703	-16,204,601	-49,817,787
Changes in the statement of profit or loss and other comprehensive income	14,602,245	2,208,552	222,734	0	-715,488	-492,754	16,318,043
Changes that relate to future services
Changes in estimates that adjust the contractual service margin	1,985,952	1,947,494	-86,341	0	-3,880,790	-3,967,131	-33,685
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	-771,225	543,231	0	0	-245,543	-245,543	-473,537
Effects of contracts initially recognised in the period	8,105,901	-2,788,449	0	0	-6,341,064	-6,341,064	-1,023,612
Total changes that relate to future services	9,320,628	-297,724	-86,341	0	-10,467,397	-10,553,738	-1,530,834
Changes that relate to current services
Contractual service margin recognised in profit or loss for service provided	0	0	318,791	0	9,980,397	10,299,188	10,299,188
Release of the risk adjustment for non- financial risk	0	2,709,028	0	0	0	0	2,709,028
Experience adjustment	161,448	0	0	0	0	0	161,448
Revenue recognised for incurred policyholder tax expenses	0	0	0	0	0	0	0
Total changes that relate to current services	161,448	2,709,028	318,791	0	9,980,397	10,299,188	13,169,664
Changes that relate to past services
Changes in fulfillment cash flows relating to incurred claims	6,088,639	189,930	0	0	0	0	6,278,569
Total changes that relate to past services	6,088,639	189,930	0	0	0	0	6,278,569
Insurance service result	15,570,715	2,601,234	232,450	0	-487,000	-254,550	17,917,399
Net finance income/expenses from insurance contracts	-968,471	-392,681	-9,715	0	-228,487	-238,202	-1,599,354
Effect of exchange rate differences	1	-1	-1	0	-1	-2	-4
Cash flows	-16,231,652	0	0	0	0	0	-16,231,652
Premiums received	-30,795,207	0	0	0	0	0	-30,795,207
Claims and other insurance service expenses paid, including investment component	8,017,588	0	0	0	0	0	8,017,588
Insurance acquisition cash flows	6,545,967	0	0	0	0	0	6,545,967
Final balance of net insurance contract assets/liabilities as at 31 December 2023	-29,505,731	-3,528,310	-395,164	0	-16,302,191	-16,697,355	-49,731,396
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-29,505,731	-3,528,310	-395,164	0	-16,302,191	-16,697,355	-49,731,396

331

							in EUR
GENERAL MODEL (BBA)	NON-LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-32,270,670	-7,476,676	-786,599	0	-10,656,804	-11,443,403	-51,190,749
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-32,270,670	-7,476,676	-786,599	0	-10,656,804	-11,443,403	-51,190,749
Changes in the statement of profit or loss and other comprehensive income	25,313,542	1,739,814	168,701	0	-4,929,899	-4,761,198	22,292,158
Changes that relate to future services
Changes in estimates that adjust the contractual service margin	4,334,994	-1,040,971	-213,660	0	-3,357,139	-3,570,799	-276,776
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	370,732	92,192	-4,231	0	-1,187,444	-1,191,675	-728,751
Effects of contracts initially recognised in the period	8,152,636	-954,071	0	0	-7,754,677	-7,754,677	-556,112
Total changes that relate to future services	12,858,362	-1,902,850	-217,891	0	-12,299,260	-12,517,151	-1,561,639
Changes that relate to current services
Contractual service margin recognised in profit or loss for service provided	0	0	397,209	0	7,335,257	7,732,466	7,732,466
Release of the risk adjustment for non- financial risk	0	2,567,664	0	0	0	0	2,567,664
Experience adjustment	2,319,566	0	0	0	0	0	2,319,566
Revenue recognised for incurred policyholder tax expenses	0	0	0	0	0	0	0
Total changes that relate to current services	2,319,566	2,567,664	397,209	0	7,335,257	7,732,466	12,619,696
Changes that relate to past services
Changes in fulfillment cash flows relating to incurred claims	7,813,634	568,308	0	0	0	0	8,381,942
Total changes that relate to past services	7,813,634	568,308	0	0	0	0	8,381,942
Insurance service result	22,991,562	1,233,122	179,318	0	-4,964,003	-4,784,685	19,439,999
Net finance income/expenses from insurance contracts	2,315,708	506,238	-10,617	0	32,365	21,748	2,843,694
Effect of exchange rate differences	6,272	454	0	0	1,739	1,739	10,204
Cash flows	-20,919,196	0	0	0	0	0	-20,919,196
Premiums received	-35,129,867	0	0	0	0	0	-35,129,867
Claims and other insurance service expenses paid, including investment component	7,073,260	0	0	0	0	0	7,073,260
Insurance acquisition cash flows	7,137,411	0	0	0	0	0	7,137,411
Final balance of net insurance contract assets/liabilities as at 31 December 2022	-27,876,324	-5,736,862	-617,898	0	-15,586,703	-16,204,601	-49,817,787
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-27,876,324	-5,736,862	-617,898	0	-15,586,703	-16,204,601	-49,817,787

332

							in EUR
GENERAL MODEL (BBA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-635,909,625	-17,062,150	-25,301,114	-9,104,491	-65,822,988	-100,228,593	-753,200,368
Insurance contract assets	61,419,381	-6,668,450	-9,866,325	-9,167	-38,717,424	-48,592,916	6,158,015
Insurance contract liabilities	-697,329,006	-10,393,700	-15,434,789	-9,095,324	-27,105,564	-51,635,677	-759,358,383
Changes in the statement of profit or loss and other comprehensive income	-2,286,322	-3,310,375	2,471,751	-972,615	-23,010,497	-21,511,361	-27,108,058
Changes that relate to future services
Changes in estimates that adjust the contractual service margin	22,025,206	-2,295,806	-2,334,936	-1,697,111	-20,023,893	-24,055,940	-4,326,540
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	6,309,605	958,980	0	-174,565	-257,357	-431,922	6,836,663
Effects of contracts initially recognised in the period	17,585,430	-2,712,814	0	0	-18,169,464	-18,169,464	-3,296,848
Total changes that relate to future services	45,920,241	-4,049,640	-2,334,936	-1,871,676	-38,450,714	-42,657,326	-786,725
Changes that relate to current services
Contractual service margin recognised in profit or loss for service provided	0	0	5,041,790	1,769,097	11,865,485	18,676,372	18,676,372
Release of the risk adjustment for non- financial risk	0	329,328	0	0	0	0	329,328
Experience adjustment	-3,391,765	0	0	0	0	0	-3,391,765
Revenue recognised for incurred policyholder tax expenses	0	0	0	0	0	0	0
Total changes that relate to current services	-3,391,765	329,328	5,041,790	1,769,097	11,865,485	18,676,372	15,613,935
Changes that relate to past services
Changes in fulfillment cash flows relating to incurred claims	-1,748,118	1,664,532	0	0	0	0	-83,586
Total changes that relate to past services	-1,748,118	1,664,532	0	0	0	0	-83,586
Insurance service result	40,780,358	-2,055,780	2,706,854	-102,579	-26,585,229	-23,980,954	14,743,624
Net finance income/expenses from insurance contracts	-43,076,771	-1,255,125	-235,103	-870,190	3,573,251	2,467,958	-41,863,938
Effect of exchange rate differences	10,091	530	0	154	1,481	1,635	13,891
Cash flows	30,735,169	0	0	0	0	0	30,735,169
Premiums received	-118,856,139	0	0	0	0	0	-118,856,139
Claims and other insurance service expenses paid, including investment component	131,135,040	0	0	0	0	0	131,135,040
Insurance acquisition cash flows	18,456,268	0	0	0	0	0	18,456,268
Final balance of net insurance contract assets/liabilities as at 31 December 2023	-607,460,778	-20,372,525	-22,829,363	-10,077,106	-88,833,485	-121,739,954	-749,573,257
Insurance contract assets	91,500,121	-10,966,798	-10,278,596	-394	-60,020,173	-70,299,163	10,234,160
Insurance contract liabilities	-698,960,899	-9,405,727	-12,550,767	-10,076,712	-28,813,312	-51,440,791	-759,807,417

333

							in EUR
GENERAL MODEL (BBA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-810,299,870	-20,397,408	-28,535,478	0	-49,705,300	-78,240,778	-908,938,056
Insurance contract assets	56,823,682	-6,551,755	-9,657,790	0	-26,049,014	-35,706,804	14,565,123
Insurance contract liabilities	-867,123,552	-13,845,653	-18,877,688	0	-23,656,286	-42,533,974	-923,503,179
Changes in the statement of profit or loss and other comprehensive income	158,066,006	3,335,258	3,234,364	-9,104,492	-16,117,688	-21,987,816	139,413,448
Changes that relate to future services
Changes in estimates that adjust the contractual service margin	-795,068	112,265	548,033	3,448,360	651,110	4,647,503	3,964,700
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	1,016,447	55,637	-15,220	-2,350,611	-75,582	-2,441,413	-1,369,329
Effects of contracts initially recognised in the period	11,016,917	-2,286,656	0	0	-13,132,786	-13,132,786	-4,402,525
Total changes that relate to future services	11,238,296	-2,118,754	532,813	1,097,749	-12,557,258	-10,926,696	-1,807,154
Changes that relate to current services
Contractual service margin recognised in profit or loss for service provided	0	0	5,837,544	902,679	9,762,430	16,502,653	16,502,653
Release of the risk adjustment for non- financial risk	0	545,527	0	0	0	0	545,527
Experience adjustment	-7,487,308	0	0	0	0	0	-7,487,308
Revenue recognised for incurred policyholder tax expenses	0	0	0	0	0	0	0
Total changes that relate to current services	-7,487,308	545,527	5,837,544	902,679	9,762,430	16,502,653	9,560,872
Changes that relate to past services
Changes in fulfillment cash flows relating to incurred claims	-1,198,404	1,690,453	0	0	0	0	492,049
Total changes that relate to past services	-1,198,404	1,690,453	0	0	0	0	492,049
Insurance service result	2,552,584	117,226	6,370,357	2,000,428	-2,794,828	5,575,957	8,245,767
Net finance income/expenses from insurance contracts	155,399,666	3,216,450	-3,135,993	-11,104,873	-13,341,996	-27,582,862	131,033,254
Effect of exchange rate differences	113,756	1,582	0	-47	19,136	19,089	153,516
Cash flows	16,324,241	0	0	0	0	0	16,324,241
Premiums received	-119,344,294	0	0	0	0	0	-119,344,294
Claims and other insurance service expenses paid, including investment component	118,376,371	0	0	0	0	0	118,376,371
Insurance acquisition cash flows	17,292,164	0	0	0	0	0	17,292,164
Final balance of net insurance contract assets/liabilities as at 31 December 2022	-635,909,623	-17,062,150	-25,301,114	-9,104,492	-65,822,988	-100,228,594	-753,200,367
Insurance contract assets	61,419,381	-6,668,450	-9,866,325	-9,167	-38,717,424	-48,592,916	6,158,015
Insurance contract liabilities	-697,329,004	-10,393,700	-15,434,789	-9,095,325	-27,105,564	-51,635,678	-759,358,382

334

							in EUR
GENERAL MODEL (BBA)	HEALTH
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-16,624,193	-991,675	0	0	-93,318	-93,318	-17,709,186
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-16,624,193	-991,675	0	0	-93,318	-93,318	-17,709,186
Changes in the statement of profit or loss and other comprehensive income	14,747,650	-219,744	0	0	657	657	14,528,563
Changes that relate to future services
Changes in estimates that adjust the contractual service margin	14,326	-19,518	0	0	1,847	1,847	-3,345
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	854,377	-25,620	0	0	-37,073	-37,073	791,684
Effects of contracts initially recognised in the period	-1,008,039	-492,702	0	0	-29,007	-29,007	-1,529,748
Total changes that relate to future services	-139,336	-537,840	0	0	-64,233	-64,233	-741,409
Changes that relate to current services
Contractual service margin recognised in profit or loss for service provided	0	0	0	0	65,279	65,279	65,279
Release of the risk adjustment for non-financial risk	0	320,957	0	0	0	0	320,957
Experience adjustment	15,154,867	0	0	0	0	0	15,154,867
Revenue recognised for incurred policyholder tax expenses	0	0	0	0	0	0	0
Total changes that relate to current services	15,154,867	320,957	0	0	65,279	65,279	15,541,103
Changes that relate to past services
Changes in fulfillment cash flows relating to incurred claims	-28,644	45,242	0	0	0	0	16,598
Total changes that relate to past services	-28,644	45,242	0	0	0	0	16,598
Insurance service result	14,986,887	-171,641	0	0	1,046	1,046	14,816,292
Net finance income/expenses from insurance contracts	-239,236	-48,103	0	0	-389	-389	-287,728
Effect of exchange rate differences	-1	0	0	0	0	0	-1
Cash flows	-251,283	0	0	0	0	0	-251,283
Premiums received	-2,846,690	0	0	0	0	0	-2,846,690
Claims and other insurance service expenses paid, including investment component	2,392,930	0	0	0	0	0	2,392,930
Insurance acquisition cash flows	202,477	0	0	0	0	0	202,477
Final balance of net insurance contract assets/liabilities as at 31 December 2023	-2,127,826	-1,211,419	0	0	-92,661	-92,661	-3,431,906
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-2,127,826	-1,211,419	0	0	-92,661	-92,661	-3,431,906

335

							in EUR
GENERAL MODEL (BBA)	HEALTH
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-29,069,542	-1,115,348	0	0	-348,838	-348,838	-30,533,728
Insurance contract assets	439,690	-20,169	0	0	-334,682	-334,682	84,839
Insurance contract liabilities	-29,509,232	-1,095,179	0	0	-14,156	-14,156	-30,618,567
Changes in the statement of profit or loss and other comprehensive income	8,693,051	123,673	0	0	255,520	255,520	9,072,244
Changes that relate to future services
Changes in estimates that adjust the contractual service margin	-312,858	-26,327	0	0	337,028	337,028	-2,157
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	-12,167,483	276,506	0	0	-42,121	-42,121	-11,933,098
Effects of contracts initially recognised in the period	-1,786,001	-570,361	0	0	-66,805	-66,805	-2,423,167
Total changes that relate to future services	-14,266,342	-320,182	0	0	228,102	228,102	-14,358,422
Changes that relate to current services
Contractual service margin recognised in profit or loss for service provided	0	0	0	0	25,207	25,207	25,207
Release of the risk adjustment for non-financial risk	0	374,089	0	0	0	0	374,089
Experience adjustment	19,227,555	0	0	0	0	0	19,227,555
Revenue recognised for incurred policyholder tax expenses	0	0	0	0	0	0	0
Total changes that relate to current services	19,227,555	374,089	0	0	25,207	25,207	19,626,851
Changes that relate to past services
Changes in fulfillment cash flows relating to incurred claims	3,334,630	27,935	0	0	0	0	3,362,565
Total changes that relate to past services	3,334,630	27,935	0	0	0	0	3,362,565
Insurance service result	8,295,843	81,842	0	0	253,309	253,309	8,630,994
Net finance income/expenses from insurance contracts	397,208	41,831	0	0	2,212	2,212	441,251
Effect of exchange rate differences	0	0	0	0	-1	-1	-2
Cash flows	3,752,298	0	0	0	0	0	3,752,298
Premiums received	-2,281,496	0	0	0	0	0	-2,281,496
Claims and other insurance service expenses paid, including investment component	5,762,737	0	0	0	0	0	5,762,737
Insurance acquisition cash flows	271,057	0	0	0	0	0	271,057
Final balance of net insurance contract assets/liabilities as at 31 December 2022	-16,624,193	-991,675	0	0	-93,318	-93,318	-17,709,186
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-16,624,193	-991,675	0	0	-93,318	-93,318	-17,709,186

336

							in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-401,236,184	-9,036,338	-19,001,306	-1,416	-50,902,051	-69,904,773	-480,177,295
Insurance contract assets	38,686	-15,617	0	0	-19,239	-19,239	3,830
Insurance contract liabilities	-401,274,870	-9,020,721	-19,001,306	-1,416	-50,882,812	-69,885,534	-480,181,125
Changes in profit or loss and/or other comprehensive income	-5,754,011	-3,878,930	-3,526,094	-905,944	-25,580,104	-30,012,142	-39,645,083
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	28,270,122	-3,192,115	-7,051,402	-1,112,844	-14,790,655	-22,954,901	2,123,106
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	2,604,505	-111,006	0	-1,798	-2,885	-4,683	2,488,816
Effects of contracts initially recognised in the period	19,517,184	-1,833,446	0	0	-17,806,253	-17,806,253	-122,515
Total changes that relate to future service	50,391,811	-5,136,567	-7,051,402	-1,114,642	-32,599,793	-40,765,837	4,489,407
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services service provided	0	0	3,525,308	208,700	7,019,509	10,753,517	10,753,517
Release of the risk adjustment for non- financial risk	0	543,145	0	0	0	0	543,145
Experience adjustment	-5,607,635	0	0	0	0	0	-5,607,635
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	-5,607,635	543,145	3,525,308	208,700	7,019,509	10,753,517	5,689,027
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	-70,058	738,033	0	0	0	0	667,975
Total changes that relate to past service	-70,058	738,033	0	0	0	0	667,975
Insurance service result	44,714,118	-3,855,389	-3,526,094	-905,942	-25,580,284	-30,012,320	10,846,409
Net insurance finance income/expenses	-50,470,665	-23,491	0	0	0	0	-50,494,156
Effect of exchange rate differences	2,536	-50	0	-2	180	178	2,842
Cash flows	-36,309,454	0	0	0	0	0	-36,309,454
Premiums received for insurance contracts issued	-119,628,972	0	0	0	0	0	-119,628,972
Claims and other insurance service expenses paid, including investment components	68,359,496	0	0	0	0	0	68,359,496
Insurance acquisition cash flows	14,960,022	0	0	0	0	0	14,960,022
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-443,299,649	-12,915,268	-22,527,400	-907,360	-76,482,155	-99,916,915	-556,131,832
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-443,299,649	-12,915,268	-22,527,400	-907,360	-76,482,155	-99,916,915	-556,131,832

337

							in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-454,336,754	-9,901,958	-22,042,764	0	-45,929,977	-67,972,741	-532,211,453
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-454,336,754	-9,901,958	-22,042,764	0	-45,929,977	-67,972,741	-532,211,453
Changes in profit or loss and/or other comprehensive income	86,041,101	865,620	3,041,458	-1,416	-4,972,074	-1,932,032	84,974,689
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	-21,413,990	1,618,940	-265,957	2,486,337	6,770,679	8,991,059	-10,803,991
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	1,154,086	2,610	0	-2,488,005	-56,128	-2,544,133	-1,387,437
Effects of contracts initially recognised in the period	18,805,811	-2,070,555	0	0	-16,762,179	-16,762,179	-26,923
Total changes that relate to future service	-1,454,093	-449,005	-265,957	-1,668	-10,047,628	-10,315,253	-12,218,351
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services service provided	0	0	3,307,415	252	5,071,358	8,379,025	8,379,025
Release of the risk adjustment for non- financial risk	0	708,556	0	0	0	0	708,556
Experience adjustment	8,231,183	0	0	0	0	0	8,231,183
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	8,231,183	708,556	3,307,415	252	5,071,358	8,379,025	17,318,764
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	479,116	587,838	0	0	0	0	1,066,954
Total changes that relate to past service	479,116	587,838	0	0	0	0	1,066,954
Insurance service result	7,256,206	847,389	3,041,458	-1,416	-4,976,270	-1,936,228	6,167,367
Net insurance finance income/expenses	78,734,221	15,930	0	0	0	0	78,750,151
Effect of exchange rate differences	50,674	2,301	0	0	4,196	4,196	61,367
Cash flows	-32,940,532	0	0	0	0	0	-32,940,532
Premiums received for insurance contracts issued	-106,892,379	0	0	0	0	0	-106,892,379
Claims and other insurance service expenses paid, including investment components	59,903,081	0	0	0	0	0	59,903,081
Insurance acquisition cash flows	14,048,766	0	0	0	0	0	14,048,766
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-401,236,185	-9,036,338	-19,001,306	-1,416	-50,902,051	-69,904,773	-480,177,296
Insurance contract assets	38,686	-15,617	0	0	-19,239	-19,239	3,830
Insurance contract liabilities	-401,274,871	-9,020,721	-19,001,306	-1,416	-50,882,812	-69,885,534	-480,181,126

338

The present value of expected cash flows, risk adjustment for non-financial risk and contractual

service margin of Zavarovalnica Triglav

							in EUR
GENERAL MODEL (BBA)	NON-LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-25,573,799	-5,589,997	-617,898	0	-14,742,403	-15,360,300	-46,524,097
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-25,573,799	-5,589,997	-617,898	0	-14,742,403	-15,360,300	-46,524,097
Changes in profit or loss and/or other comprehensive income	14,480,037	2,173,181	222,734	0	-594,641	-371,907	16,281,311
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	2,016,886	1,915,250	-86,341	0	-3,846,660	-3,933,002	-866
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	-771,225	543,231	0	0	0	0	-227,993
Effects of contracts initially recognised in the period	7,947,327	-2,772,427	0	0	-6,198,511	-6,198,511	-1,023,611
Total changes that relate to future service	9,192,988	-313,946	-86,341	0	-10,045,171	-10,131,512	-1,252,470
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services	0	0	318,791	0	9,674,708	9,993,499	9,993,499
Release of the risk adjustment for non- financial risk	0	2,680,374	0	0	0	0	2,680,374
Experience adjustment	4,578	0	0	0	0	0	4,578
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	4,578	2,680,374	318,791	0	9,674,708	9,993,499	12,678,451
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	6,119,880	190,759	0	0	0	0	6,310,639
Total changes that relate to past service	6,119,880	190,759	0	0	0	0	6,310,639
Insurance service result	15,317,446	2,557,187	232,449	0	-370,463	-138,014	17,736,620
Net insurance finance income/expenses	-837,409	-384,006	-9,715	0	-224,178	-233,893	-1,455,308
Cash flows	-16,656,965	0	0	0	0	0	-16,656,965
Premiums received for insurance contracts issued	-30,104,974	0	0	0	0	0	-30,104,974
Claims and other insurance service expenses paid, including investment components	7,588,765	0	0	0	0	0	7,588,765
Insurance acquisition cash flows	5,859,244	0	0	0	0	0	5,859,244
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-27,750,727	-3,416,816	-395,164	0	-15,337,044	-15,732,207	-46,899,751
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-27,750,727	-3,416,816	-395,164	0	-15,337,044	-15,732,207	-46,899,751

339

							in EUR
GENERAL MODEL (BBA)	NON-LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-29,774,545	-7,297,079	-786,599	0	-9,960,070	-10,746,669	-47,818,293
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-29,774,545	-7,297,079	-786,599	0	-9,960,070	-10,746,669	-47,818,293
Changes in profit or loss and/or other comprehensive income	24,559,000	1,707,082	168,701	0	-4,782,332	-4,613,631	21,652,451
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	4,330,873	-1,090,267	-213,660	0	-3,269,833	-3,483,493	-242,886
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	370,733	92,192	-4,231	0	-1,187,444	-1,191,675	-728,751
Effects of contracts initially recognised in the period	7,764,853	-880,737	0	0	-7,440,228	-7,440,228	-556,112
Total changes that relate to future service	12,466,459	-1,878,811	-217,891	0	-11,897,505	-12,115,396	-1,527,749
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services	0	0	397,209	0	7,083,368	7,480,577	7,480,577
Release of the risk adjustment for non- financial risk	0	2,526,702	0	0	0	0	2,526,702
Experience adjustment	2,181,479	0	0	0	0	0	2,181,479
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	2,181,479	2,526,702	397,209	0	7,083,368	7,480,577	12,188,759
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	7,823,049	567,214	0	0	0	0	8,390,264
Total changes that relate to past service	7,823,049	567,214	0	0	0	0	8,390,264
Insurance service result	22,470,987	1,215,105	179,318	0	-4,814,137	-4,634,819	19,051,274
Net insurance finance income/expenses	2,088,013	491,977	-10,617	0	31,804	21,187	2,601,177
Cash flows	-20,358,255	0	0	0	0	0	-20,358,255
Premiums received for insurance contracts issued	-32,211,346	0	0	0	0	0	-32,211,346
Claims and other insurance service expenses paid, including investment components	6,325,957	0	0	0	0	0	6,325,957
Insurance acquisition cash flows	5,527,134	0	0	0	0	0	5,527,134
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-25,573,799	-5,589,997	-617,898	0	-14,742,403	-15,360,300	-46,524,097
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-25,573,799	-5,589,997	-617,898	0	-14,742,403	-15,360,300	-46,524,097

340

							in EUR
GENERAL MODEL (BBA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-562,136,636	-15,674,852	-25,301,114	-8,746,590	-57,911,248	-91,958,952	-669,770,440
Insurance contract assets	60,989,285	-6,625,874	-9,866,325	-35	-38,425,524	-48,291,885	6,071,526
Insurance contract liabilities	-623,125,921	-9,048,978	-15,434,789	-8,746,555	-19,485,723	-43,667,068	-675,841,966
Changes in profit or loss and/or other comprehensive income	-656,228	-3,104,370	2,471,751	-162,967	-21,243,498	-18,934,714	-22,695,313
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	23,674,314	-2,325,600	-2,334,936	-795,779	-21,352,858	-24,483,574	-3,134,860
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	5,266,670	1,083,676	0	-126,913	-16,882	-143,795	6,206,551
Effects of contracts initially recognised in the period	13,314,290	-2,332,430	0	0	-11,940,747	-11,940,747	-958,888
Total changes that relate to future service	42,255,273	-3,574,354	-2,334,936	-922,692	-33,310,487	-36,568,116	2,112,803
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services	0	0	5,041,790	1,454,041	8,914,523	15,410,353	15,410,353
Release of the risk adjustment for non- financial risk	0	72,889	0	0	0	0	72,889
Experience adjustment	-5,160,943	0	0	0	0	0	-5,160,943
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	-5,160,943	72,889	5,041,790	1,454,041	8,914,523	15,410,353	10,322,299
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	-209,559	1,577,299	0	0	0	0	1,367,740
Total changes that relate to past service	-209,559	1,577,299	0	0	0	0	1,367,740
Insurance service result	36,884,771	-1,924,166	2,706,854	531,348	-24,395,965	-21,157,763	13,802,842
Net insurance finance income/expenses	-37,540,999	-1,180,205	-235,102	-694,315	3,152,466	2,223,048	-36,498,155
Cash flows	37,413,603	0	0	0	0	0	37,413,603
Premiums received for insurance contracts issued	-83,173,821	0	0	0	0	0	-83,173,821
Claims and other insurance service expenses paid, including investment components	109,997,231	0	0	0	0	0	109,997,231
Insurance acquisition cash flows	10,590,192	0	0	0	0	0	10,590,192
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-525,379,261	-18,779,222	-22,829,363	-8,909,557	-79,154,746	-110,893,667	-655,052,150
Insurance contract assets	91,393,420	-10,955,818	-10,278,596	-22	-59,963,999	-70,242,617	10,194,985
Insurance contract liabilities	-616,772,681	-7,823,404	-12,550,767	-8,909,536	-19,190,747	-40,651,050	-665,247,135

341

							in EUR
GENERAL MODEL (BBA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-727,020,031	-18,577,725	-28,535,478	0	-44,161,189	-72,696,667	-818,294,423
Insurance contract assets	56,133,081	-6,505,990	-9,657,790	0	-25,693,900	-35,351,690	14,275,401
Insurance contract liabilities	-783,153,112	-12,071,735	-18,877,688	0	-18,467,289	-37,344,977	-832,569,824
Changes in profit or loss and/or other comprehensive income	139,883,596	2,902,873	3,234,364	-8,746,590	-13,750,059	-19,262,285	123,524,183
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	-348,722	124,195	548,033	3,000,861	718,436	4,267,330	4,042,803
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	-664,453	-64,772	-15,220	-2,157,268	-34,892	-2,207,380	-2,936,605
Effects of contracts initially recognised in the period	10,286,053	-1,982,457	0	0	-9,575,743	-9,575,743	-1,272,147
Total changes that relate to future service	9,272,878	-1,923,034	532,813	843,593	-8,892,199	-7,515,793	-165,949
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services	0	0	5,837,544	760,544	7,305,165	13,903,253	13,903,253
Release of the risk adjustment for non- financial risk	0	265,837	0	0	0	0	265,837
Experience adjustment	-7,159,625	0	0	0	0	0	-7,159,625
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	-7,159,625	265,837	5,837,544	760,544	7,305,165	13,903,253	7,009,466
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	239,815	1,515,118	0	0	0	0	1,754,934
Total changes that relate to past service	239,815	1,515,118	0	0	0	0	1,754,934
Insurance service result	2,353,068	-142,078	6,370,356	1,604,137	-1,587,033	6,387,461	8,598,451
Net insurance finance income/expenses	137,530,528	3,044,951	-3,135,992	-10,350,728	-12,163,026	-25,649,746	114,925,733
Cash flows	24,999,799	0	0	0	0	0	24,999,799
Premiums received for insurance contracts issued	-84,344,028	0	0	0	0	0	-84,344,028
Claims and other insurance service expenses paid, including investment components	99,321,815	0	0	0	0	0	99,321,815
Insurance acquisition cash flows	10,022,013	0	0	0	0	0	10,022,013
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-562,136,636	-15,674,852	-25,301,114	-8,746,590	-57,911,248	-91,958,952	-669,770,440
Insurance contract assets	60,989,285	-6,625,874	-9,866,325	-35	-38,425,524	-48,291,885	6,071,526
Insurance contract liabilities	-623,125,921	-9,048,978	-15,434,789	-8,746,555	-19,485,723	-43,667,068	-675,841,966

342

							in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2023	-384,147,781	-8,485,625	-19,001,306	-144	-49,323,751	-68,325,201	-460,958,607
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-384,147,781	-8,485,625	-19,001,306	-144	-49,323,751	-68,325,201	-460,958,607
Changes in profit or loss and/or other comprehensive income	-2,090,305	-3,872,873	-3,526,094	-831,308	-26,066,030	-30,423,432	-36,386,610
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	31,820,827	-3,197,271	-7,051,402	-1,027,817	-18,428,240	-26,507,459	2,116,096
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	2,210,337	-152,587	0	0	-82	-82	2,057,668
Effects of contracts initially recognised in the period	16,052,480	-1,695,312	0	0	-14,518,820	-14,518,820	-161,652
Total changes that relate to future service	50,083,643	-5,045,170	-7,051,402	-1,027,817	-32,947,141	-41,026,360	4,012,113
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services service provided	0	0	3,525,308	196,509	6,881,111	10,602,928	10,602,928
Release of the risk adjustment for non- financial risk	0	475,820	0	0	0	0	475,820
Experience adjustment	-5,528,913	0	0	0	0	0	-5,528,913
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	-5,528,913	475,820	3,525,308	196,509	6,881,111	10,602,928	5,549,835
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	-115,939	719,457	0	0	0	0	603,519
Total changes that relate to past service	-115,939	719,457	0	0	0	0	603,519
Insurance service result	44,438,791	-3,849,892	-3,526,094	-831,308	-26,066,030	-30,423,432	10,165,467
Net insurance finance income/expenses	-46,529,096	-22,981	0	0	0	0	-46,552,077
Cash flows	-34,500,217	0	0	0	0	0	-34,500,217
Premiums received for insurance contracts issued	-114,614,716	0	0	0	0	0	-114,614,716
Claims and other insurance service expenses paid, including investment components	65,991,432	0	0	0	0	0	65,991,432
Insurance acquisition cash flows	14,123,067	0	0	0	0	0	14,123,067
Closing balance of net insurance contract assets/liabilities as at 31 December 2023	-420,738,303	-12,358,498	-22,527,400	-831,453	-75,389,780	-98,748,633	-531,845,434
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-420,738,303	-12,358,498	-22,527,400	-831,453	-75,389,780	-98,748,633	-531,845,434

343

							in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
			Contractual service margin
	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	Contracts under the modified retrospective approach	Contracts under the fair value approach	Other contracts	Total Contractual service margin	TOTAL
Opening balance of net insurance contract assets/liabilities as at 1 January 2022	-434,183,072	-9,001,844	-22,042,764	0	-44,258,437	-66,301,201	-509,486,117
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-434,183,072	-9,001,844	-22,042,764	0	-44,258,437	-66,301,201	-509,486,117
Changes in profit or loss and/or other comprehensive income	81,984,872	516,218	3,041,458	-144	-5,065,313	-2,023,999	80,477,091
Changes that relate to future service
Changes in estimates that adjust the contractual service margin	-19,358,813	1,180,246	-265,957	1,644,769	6,430,395	7,809,206	-10,369,361
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses	1,155,950	-489	0	-1,644,967	-42,466	-1,687,433	-531,972
Effects of contracts initially recognised in the period	18,108,418	-1,809,620	0	0	-16,324,822	-16,324,822	-26,024
Total changes that relate to future service	-94,446	-629,863	-265,957	-198	-9,936,893	-10,203,049	-10,927,357
Changes that relate to current service
Contractual service margin recognised in profit or loss to reflect the transfer of services service provided	0	0	3,307,415	54	4,871,580	8,179,049	8,179,049
Release of the risk adjustment for non- financial risk	0	603,644	0	0	0	0	603,644
Experience adjustment	7,828,786	0	0	0	0	0	7,828,786
Income related to policyholder tax expense	0	0	0	0	0	0	0
Total changes that relate to current service	7,828,786	603,644	3,307,415	54	4,871,580	8,179,049	16,611,479
Changes that relate to past service
Changes in fulfillment cash flows that relate to incurred claims	327,077	528,178	0	0	0	0	855,255
Total changes that relate to past service	327,077	528,178	0	0	0	0	855,255
Insurance service result	8,061,417	501,960	3,041,458	-144	-5,065,313	-2,023,999	6,539,378
Net insurance finance income/expenses	73,923,455	14,259	0	0	0	0	73,937,714
Cash flows	-31,949,581	0	0	0	0	0	-31,949,581
Premiums received for insurance contracts issued	-102,655,230	0	0	0	0	0	-102,655,230
Claims and other insurance service expenses paid, including investment components	57,356,506	0	0	0	0	0	57,356,506
Insurance acquisition cash flows	13,349,143	0	0	0	0	0	13,349,143
Closing balance of net insurance contract assets/liabilities as at 31 December 2022	-384,147,781	-8,485,625	-19,001,306	-144	-49,323,751	-68,325,201	-460,958,607
Insurance contract assets	0	0	0	0	0	0	0
Insurance contract liabilities	-384,147,781	-8,485,625	-19,001,306	-144	-49,323,751	-68,325,201	-460,958,607

344

3.1.6

The effects of insurance contracts for which initial recognition was carried out in the period and which are not measured according to the

premium allocation approach (PAA)

The effects of the Triglav Group's insurance contracts for which initial recognition was carried out in 2023 and which are not measured according to the

premium allocation approach

												in EUR
GENERAL MODEL (BBA)	NON-LIFE			LIFE			HEALTH			TOTAL
	Contracts issued			Contracts issued			Contracts issued			Contracts issued
	Profitable	Onerous	Total	Profitable	Onerous	Total	Profitable	Onerous	Total	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	12,415,023	6,092,958	18,507,981	58,741,939	17,438,460	76,180,399	218,904	3,845,819	4,064,723	71,375,866	27,377,237	98,753,103
Incurred claims and other incurred insurance service expenses	9,655,666	4,022,620	13,678,286	43,009,886	14,295,150	57,305,036	217,032	3,172,069	3,389,101	52,882,584	21,489,839	74,372,423
Insurance acquisition cash flows	2,759,357	2,070,338	4,829,695	15,732,053	3,143,310	18,875,363	1,872	673,750	675,622	18,493,282	5,887,398	24,380,680
Estimates of the present value of future cash inflows	-20,702,785	-5,911,099	-26,613,884	-79,352,392	-14,407,609	-93,760,001	-277,275	-2,779,408	-3,056,683	-100,332,452	-23,098,116	-123,430,568
Risk adjustment for non-financial risk	1,946,698	841,751	2,788,449	2,446,831	265,823	2,712,654	29,364	463,338	492,702	4,422,893	1,570,912	5,993,805
Contractual service margin	6,341,064	0	6,341,064	18,163,622	0	18,163,622	29,007	0	29,007	24,533,693	0	24,533,693
Total liability on initial recognition	0	1,023,610	1,023,610	0	3,296,674	3,296,674	0	1,529,749	1,529,749	0	5,850,033	5,850,033

			in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
	Contracts issued
	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	101,873,430	13,484,604	115,358,034
Incurred claims and other incurred insurance service expenses	89,260,554	11,536,083	100,796,637
Insurance acquisition cash flows	12,612,876	1,948,521	14,561,397
Estimates of the present value of future cash inflows	-121,440,141	-13,429,648	-134,869,789
Risk adjustment for non-financial risk	1,765,745	67,626	1,833,371
Contractual service margin	17,800,965	0	17,800,965
Total liability on initial recognition	-1	122,582	122,581

345

The effects of the Triglav Group's insurance contracts for which initial recognition was carried out in 2022 and which are not measured according to the

premium allocation approach

												in EUR
GENERAL MODEL (BBA)	NON-LIFE			LIFE			HEALTH			TOTAL
	Contracts issued			Contracts issued			Contracts issued			Contracts issued
	Profitable	Onerous	Total	Profitable	Onerous	Total	Profitable	Onerous	Total	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	39,764,905	0	39,764,905	39,405,445	6,679,369	46,084,814	166,964	4,723,523	4,890,486	79,337,313	11,402,892	90,740,205
Incurred claims and other incurred insurance service expenses	25,190,501	0	25,190,501	28,926,216	6,422,523	35,348,738	117,137	4,089,343	4,206,480	54,233,854	10,511,866	64,745,720
Insurance acquisition cash flows	14,574,404	0	14,574,404	10,479,229	256,847	10,736,076	49,827	634,179	684,006	25,103,460	891,026	25,994,486
Estimates of the present value of future cash inflows	-51,007,776	556,112	-50,451,664	-51,014,621	-5,568,466	-56,583,087	-244,498	-2,859,988	-3,104,486	-102,266,896	-7,872,342	-110,139,238
Risk adjustment for non-financial risk	1,433,299	0	1,433,299	1,849,306	161,244	2,010,550	10,729	559,632	570,361	3,293,334	720,876	4,014,210
Contractual service margin	9,809,573	0	9,809,573	9,759,870	0	9,759,870	66,805	0	66,805	19,636,249	0	19,636,249
Total liability on initial recognition	0	556,112	556,112	0	1,272,147	1,272,147	0	2,423,167	2,423,167	0	4,251,426	4,251,426

			in EUR
VARIABLE FEE APPROACH (VFA)	LIFE
	Contracts issued
	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	119,169,078	3,968,547	123,137,625
Incurred claims and other incurred insurance service expenses	105,955,787	3,405,563	109,361,350
Insurance acquisition cash flows	13,213,291	562,984	13,776,276
Estimates of the present value of future cash inflows	-137,284,326	-3,961,717	-141,246,043
Risk adjustment for non-financial risk	1,790,426	19,193	1,809,620
Contractual service margin	16,324,822	0	16,324,822
Total liability on initial recognition	0	26,024	26,024

346

The effects of Zavarovalnica Triglav's insurance contracts for which initial recognition was carried out in 2023 and which are not measured according to

the premium allocation approach

									in EUR
CONTRACTS MEASURED UNDER THE GENERAL MODEL	NON-LIFE			LIFE			TOTAL
(BBA)	Contracts issued			Contracts issued			Contracts issued
	Profitable	Onerous	Total	Profitable	Onerous	Total	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	11,888,945	6,092,959	17,981,904	39,894,992	6,515,898	46,410,890	51,783,937	12,608,857	64,392,794
Incurred claims and other incurred insurance service expenses	9,394,234	4,022,620	13,416,855	28,763,909	6,325,862	35,089,771	38,158,143	10,348,482	48,506,625
Insurance acquisition cash flows	2,494,711	2,070,338	4,565,049	11,131,083	190,036	11,321,119	13,625,794	2,260,374	15,886,168
Estimates of the present value of future cash inflows	-20,018,132	-5,911,099	-25,929,230	-54,012,004	-5,713,175	-59,725,179	-74,030,136	-11,624,274	-85,654,410
Risk adjustment for non-financial risk	1,930,676	841,751	2,772,427	2,176,265	156,165	2,332,430	4,106,941	997,916	5,104,857
Contractual service margin	6,198,511	0	6,198,511	11,940,747	0	11,940,747	18,139,258	0	18,139,258
Total liability on initial recognition	0	1,023,611	1,023,611	0	958,888	958,888	0	1,982,499	1,982,499

			in EUR
CONTRACTS MEASURED UNDER THE VARIABLE	LIFE
FEE APPROACH (VFA)	Contracts issued
	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	100,629,028	13,402,262	114,031,290
Incurred claims and other incurred insurance service expenses	88,751,160	11,459,653	100,210,813
Insurance acquisition cash flows	11,877,868	1,942,609	13,820,477
Estimates of the present value of future cash inflows	-116,775,973	-13,307,797	-130,083,770
Risk adjustment for non-financial risk	1,628,126	67,186	1,695,312
Contractual service margin	14,518,820	0	14,518,820
Total liability on initial recognition	0	161,652	161,652

347

The effects of Zavarovalnica Triglav's insurance contracts for which initial recognition was carried out in 2022 and which are not measured according to

the premium allocation approach

									in EUR
CONTRACTS MEASURED UNDER THE GENERAL MODEL	NON-LIFE			LIFE			TOTAL
(BBA)	Contracts issued			Contracts issued			Contracts issued
	Profitable	Onerous	Total	Profitable	Onerous	Total	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	21,334,906	0	21,334,906	36,504,330	6,679,369	43,183,699	57,839,236	6,679,369	64,518,605
Incurred claims and other incurred insurance service expenses	15,990,325	0	15,990,325	26,224,557	6,422,523	32,647,079	42,214,882	6,422,523	48,637,404
Insurance acquisition cash flows	5,344,581	0	5,344,581	10,279,773	256,847	10,536,620	15,624,354	256,847	15,881,201
Estimates of the present value of future cash inflows	-29,655,871	556,112	-29,099,759	-47,901,286	-5,568,466	-53,469,752	-77,557,156	-5,012,354	-82,569,511
Risk adjustment for non-financial risk	880,737	0	880,737	1,821,213	161,244	1,982,457	2,701,950	161,244	2,863,194
Contractual service margin	7,440,228	0	7,440,228	9,575,743	0	9,575,743	17,015,971	0	17,015,971
Total liability on initial recognition	0	556,112	556,112	0	1,272,147	1,272,147	0	1,828,259	1,828,259

			in EUR
CONTRACTS MEASURED UNDER THE VARIABLE	LIFE
FEE APPROACH (VFA)	Contracts issued
	Profitable	Onerous	TOTAL
Estimates of the present value of future cash outflows	119,169,078	3,968,547	123,137,625
Incurred claims and other incurred insurance service expenses	105,955,787	3,405,563	109,361,350
Insurance acquisition cash flows	13,213,291	562,984	13,776,276
Estimates of the present value of future cash inflows	-137,284,326	-3,961,717	-141,246,043
Risk adjustment for non-financial risk	1,790,426	19,193	1,809,620
Contractual service margin	16,324,822	0	16,324,822
Total liability on initial recognition	0	26,024	26,024

348

3.1.7

Presentation of the expected release of the contractual service margin

Presentation of the expected release of the contractual service margin of the Triglav Group

								in EUR
NET INSURANCE CONTRACT ASSETS AS AT 31 DECEMBER 2023
	< 1 year	1–2 years	2–3 years	3–4 years	4–5 years	5–10 years	> 10 years	TOTAL
Non-life insurance contracts
General model (BBA)	7,602,267	3,976,282	1,742,570	1,123,522	714,900	1,260,773	277,040	16,697,354
Life insurance contracts
General model (BBA)	16,280,532	13,841,152	11,914,103	10,247,785	8,819,200	30,148,660	30,488,520	121,739,952
Variable fee approach (VFA)	11,083,623	10,419,020	9,732,445	8,975,336	8,204,325	29,952,660	21,549,506	99,916,915
Total life insurance contracts	27,364,155	24,260,172	21,646,548	19,223,121	17,023,525	60,101,320	52,038,026	221,656,867
Health insurance contracts
General model (BBA)	51,492	22,618	12,460	6,091	0	0	0	92,661
Total	35,017,914	28,259,072	23,401,578	20,352,734	17,738,425	61,362,093	52,315,066	238,446,882

								in EUR
NET INSURANCE CONTRACT ASSETS AS AT 31 DECEMBER 2022
	< 1 year	1–2 years	2–3 years	3–4 years	4–5 years	5–10 years	> 10 years	TOTAL
Non-life insurance contracts
General model (BBA)	6,194,778	4,304,898	2,818,303	964,662	616,156	1,071,887	233,915	16,204,600
Life insurance contracts
General model (BBA)	14,308,931	11,967,124	10,157,758	8,690,075	7,393,800	24,298,760	23,412,149	100,228,597
Variable fee approach (VFA)	8,352,679	7,601,365	6,904,715	6,277,524	5,663,997	20,332,383	14,772,110	69,904,773
Total life insurance contracts	22,661,610	19,568,489	17,062,473	14,967,599	13,057,797	44,631,143	38,184,259	170,133,370
Health insurance contracts
General model (BBA)	39,525	39,651	12,565	1,577	0	0	0	93,318
Total	28,895,913	23,913,039	19,893,341	15,933,838	13,673,953	45,703,030	38,418,175	186,431,288

349

Presentation of the expected release of the contractual service margin of Zavarovalnica Triglav

								in EUR
NET INSURANCE CONTRACT ASSETS AS AT 31 DECEMBER 2023
	< 1 year	1–2 years	2–3 years	3–4 years	4–5 years	5–10 years	> 10 years	TOTAL
Life insurance
General model (BBA)	13,760,903	12,064,696	10,504,904	9,136,112	7,963,361	28,129,189	29,334,501	110,893,667
Variable fee approach (VFA)	10,944,029	10,301,626	9,627,865	8,881,794	8,120,187	29,640,817	21,232,314	98,748,633
Total life insurance	24,704,932	22,366,323	20,132,769	18,017,906	16,083,549	57,770,006	50,566,815	209,642,300
Non-life insurance
General model (BBA)	7,344,341	3,760,276	1,568,947	991,442	624,208	1,165,997	276,996	15,732,207
Total non-life insurance	7,344,341	3,760,276	1,568,947	991,442	624,208	1,165,997	276,996	15,732,207

								in EUR
NET INSURANCE CONTRACT ASSETS AS AT 31 DECEMBER 2022
	< 1 year	1–2 years	2–3 years	3–4 years	4–5 years	5–10 years	> 10 years	TOTAL
Life insurance
General model (BBA)	12,504,848	10,707,845	9,146,523	7,879,247	6,753,906	22,597,699	22,368,883	91,958,952
Variable fee approach (VFA)	8,152,039	7,429,061	6,754,817	6,147,267	5,550,286	19,941,370	14,350,361	68,325,201
Total life insurance	20,656,887	18,136,906	15,901,340	14,026,514	12,304,192	42,539,069	36,719,244	160,284,153
Non-life insurance
General model (BBA)	5,991,040	4,129,793	2,672,527	848,424	528,677	956,159	233,680	15,360,300
Total non-life insurance	5,991,040	4,129,793	2,672,527	848,424	528,677	956,159	233,680	15,360,300

350

3.1.8

Claims development

Non-life claims development of the Triglav Group

											in EUR
	Year of occurence
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	TOTAL
Cumulative estimate of gross claims
– at the end of year of occurrence	-567,556	-58,455,843	-35,833,868	-43,927,705	-44,507,608	-172,198,265	-141,468,543	-635,574,407	-839,297,231	-1,162,941,276
– 1 year after year of occurrence	-540,971	-53,589,151	-37,924,601	-44,534,436	-45,004,584	-166,087,534	-259,698,565	-671,548,403	-849,541,692	0
– 2 years after year of occurrence	-538,139	-52,327,914	-37,415,490	-44,981,097	-45,409,491	-220,440,577	-245,066,199	-648,530,014	0	0
– 3 years after year of occurrence	-530,139	-52,095,752	-37,811,797	-45,365,942	-75,319,185	-211,718,805	-242,226,611	0	0	0
– 4 years after year of occurrence	-526,981	-51,893,842	-38,477,763	-65,606,209	-71,974,859	-211,496,491	0	0	0	0
– 5 years after year of occurrence	-502,324	-53,332,768	-145,359,562	-64,155,918	-63,593,179	0	0	0	0	0
– 6 years after year of occurrence	-499,274	-54,055,766	-136,898,686	-67,116,491	0	0	0	0	0	0
– 7 years after year of occurrence	-7,688,002	-52,550,683	-129,421,917	0	0	0	0	0	0	0
– 8 years after year of occurrence	-8,360,100	-52,244,719	0	0	0	0	0	0	0	0
– 9 years after year of occurrence	-8,134,689	0	0	0	0	0	0	0	0	0
Cumulative payments up to the balance sheet date	-4,179,423	-47,298,780	-45,445,782	-49,976,745	-51,832,069	-167,607,021	-189,275,188	-556,193,296	-723,303,046	-695,470,155
Gross liabilities	-3,955,266	-4,945,939	-83,976,135	-17,139,746	-11,761,110	-43,889,470	-52,951,423	-92,336,718	-126,238,646	-467,471,121	-904,665,574
Gross liabilities of previous years											28,486
Discounting effect											78,283,362
Gross liabilities for incurred claims included in the financial statements											-826,353,726

351

											in EUR
	Year of occurence
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	TOTAL
Cumulative estimate of net claims
– at the end of year of occurrence	-567,556	-58,455,843	-34,981,866	-43,664,638	-44,332,108	-157,657,108	-117,142,326	-556,863,069	-756,284,366	-903,896,788
– 1 year after year of occurrence	-540,971	-52,156,273	-35,674,949	-44,147,550	-44,851,030	-150,925,899	-197,287,681	-557,947,644	-744,288,118	0
– 2 years after year of occurrence	-538,139	-50,992,064	-35,023,721	-44,633,667	-45,257,590	-192,669,080	-186,602,429	-546,086,949	0	0
– 3 years after year of occurrence	-530,139	-50,043,400	-35,419,021	-44,978,043	-68,537,483	-184,331,444	-175,097,058	0	0	0
– 4 years after year of occurrence	-526,981	-49,856,975	-36,084,311	-61,539,251	-65,122,709	-182,569,681	0	0	0	0
– 5 years after year of occurrence	-502,324	-51,281,385	-140,010,238	-60,808,755	-57,187,891	0	0	0	0	0
– 6 years after year of occurrence	-499,274	-48,970,334	-132,897,016	-63,554,911	0	0	0	0	0	0
– 7 years after year of occurrence	11,488,752	-48,203,099	-124,839,722	0	0	0	0	0	0	0
– 8 years after year of occurrence	4,826,953	-48,177,698	0	0	0	0	0	0	0	0
– 9 years after year of occurrence	6,180,706	0	0	0	0	0	0	0	0	0
Cumulative payments up to the balance sheet date	1,110,053	-44,673,602	-41,486,164	-48,060,465	-47,370,693	-147,864,669	-145,037,999	-500,218,607	-662,131,618	-628,713,850
Net liabilities	5,070,653	-3,504,096	-83,353,558	-15,494,446	-9,817,198	-34,705,012	-30,059,059	-45,868,342	-82,156,500	-275,182,938	-575,070,496
Net liabilities of previous years											28,486
Discounting effect											67,209,626
Net liabilities for incurred claims included in the financial statements											-507,832,384

352

Life claims development of the Triglav Group

											in EUR
	Year of occurence
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	TOTAL
Cumulative estimate of gross claims
– at the end of year of occurrence	-13,258,710	-14,386,984	-21,735,265	-53,276,639	-36,435,931	-44,875,116	-58,246,631	-99,980,619	-180,350,217	-202,425,113
– 1 year after year of occurrence	-13,258,710	-13,678,534	-20,280,430	-52,247,037	-34,960,623	-42,676,670	-86,120,578	-99,024,624	-179,373,218	0
– 2 years after year of occurrence	-13,346,636	-13,599,658	-20,064,387	-51,805,207	-34,452,877	-76,096,393	-85,543,861	-98,642,222	0	0
– 3 years after year of occurrence	-13,390,813	-13,615,224	-19,898,607	-51,736,461	-66,986,906	-75,896,050	-85,733,013	0	0	0
– 4 years after year of occurrence	-13,424,985	-13,608,409	-19,918,903	-97,127,331	-66,999,207	-76,125,268	0	0	0	0
– 5 years after year of occurrence	-13,456,782	-13,637,568	-37,502,281	-97,111,029	-67,173,465	0	0	0	0	0
– 6 years after year of occurrence	-13,487,784	-30,173,319	-37,528,413	-97,158,868	0	0	0	0	0	0
– 7 years after year of occurrence	-29,812,645	-30,173,020	-37,581,335	0	0	0	0	0	0	0
– 8 years after year of occurrence	-29,821,100	-30,205,274	0	0	0	0	0	0	0	0
– 9 years after year of occurrence	-29,836,495	0	0	0	0	0	0	0	0	0
Cumulative payments up to the balance sheet date	-29,674,351	-30,020,909	-37,197,300	-96,722,022	-66,706,027	-75,413,736	-84,607,815	-96,442,842	-174,461,382	-177,939,429
Gross liabilities	-162,144	-184,365	-384,035	-436,846	-467,438	-711,532	-1,125,198	-2,199,380	-4,911,836	-24,485,684	-35,068,458
Gross liabilities of previous years											-236,849
Discounting effect											824,713
Gross liabilities for incurred claims included in the financial statements											-34,480,594

353

											in EUR
	Year of occurence
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	TOTAL
Cumulative estimate of net claims
– at the end of year of occurrence	-13,258,710	-14,386,984	-21,735,265	-53,276,639	-36,435,931	-44,717,234	-57,790,696	-98,731,174	-179,558,644	-201,333,933
– 1 year after year of occurrence	-13,258,710	-13,678,534	-20,280,430	-52,247,037	-34,960,623	-42,676,670	-85,871,846	-98,240,416	-178,417,868	0
– 2 years after year of occurrence	-13,346,636	-13,599,658	-20,064,387	-51,805,207	-34,452,877	-76,096,393	-85,285,704	-97,845,237	0	0
– 3 years after year of occurrence	-13,390,813	-13,615,224	-19,898,607	-51,736,461	-66,986,906	-75,896,050	-85,459,365	0	0	0
– 4 years after year of occurrence	-13,424,985	-13,608,409	-19,918,903	-97,127,331	-66,999,207	-76,125,268	0	0	0	0
– 5 years after year of occurrence	-13,456,782	-13,637,568	-37,502,281	-97,111,029	-67,173,465	0	0	0	0	0
– 6 years after year of occurrence	-13,487,784	-30,173,319	-37,528,413	-97,158,868	0	0	0	0	0	0
– 7 years after year of occurrence	-29,812,645	-30,173,020	-37,581,335	0	0	0	0	0	0	0
– 8 years after year of occurrence	-29,821,100	-30,205,274	0	0	0	0	0	0	0	0
– 9 years after year of occurrence	-29,836,495	0	0	0	0	0	0	0	0	0
Cumulative payments up to the balance sheet date	-29,674,351	-30,020,909	-37,197,300	-96,722,022	-66,706,027	-75,413,736	-84,344,664	-95,645,857	-173,523,799	-177,211,306
Net liabilities	-162,144	-184,365	-384,035	-436,846	-467,438	-711,532	-1,114,701	-2,199,380	-4,894,069	-24,122,627	-34,677,137
Net liabilities of previous years											-236,849
Discounting effect											820,401
Net liabilities for incurred claims included in the financial statements											-34,093,585

354

Non-life claims development of Zavarovalnica Triglav

											in EUR
	Year of occurence
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	TOTAL
Cumulative estimate of gross claims
– at the end of year of occurrence	-567,556	-1,854,864	-2,733,651	-3,151,844	-3,609,490	-4,005,585	-4,285,339	-263,906,230	-429,712,110	-654,217,821
– 1 year after year of occurrence	-540,971	-2,002,500	-3,024,020	-4,079,514	-5,211,302	-5,887,283	-68,708,618	-287,303,682	-430,243,107	0
– 2 years after year of occurrence	-538,139	-1,978,188	-2,920,846	-3,844,517	-4,983,052	-37,469,492	-66,265,750	-269,913,712	0	0
– 3 years after year of occurrence	-530,139	-1,902,410	-2,819,719	-3,705,027	-24,004,466	-33,716,329	-59,814,815	0	0	0
– 4 years after year of occurrence	-526,981	-1,869,136	-2,761,587	-20,517,526	-22,131,127	-34,588,301	0	0	0	0
– 5 years after year of occurrence	-502,324	-1,838,694	-107,573,196	-20,054,018	-14,755,413	0	0	0	0	0
– 6 years after year of occurrence	-499,274	-1,823,988	-99,164,171	-22,685,995	0	0	0	0	0	0
– 7 years after year of occurrence	-480,230	-1,669,520	-92,161,467	0	0	0	0	0	0	0
– 8 years after year of occurrence	-773,718	-1,548,348	0	0	0	0	0	0	0	0
– 9 years after year of occurrence	-592,370	0	0	0	0	0	0	0	0	0
Cumulative payments up to the balance sheet date	-601,513	-1,554,546	-10,127,110	-8,251,839	-8,138,407	-16,467,586	-38,563,719	-206,483,470	-341,404,359	-368,210,522
Gross liabilities	9,143	6,198	-82,034,357	-14,434,156	-6,617,006	-18,120,715	-21,251,096	-63,430,242	-88,838,748	-286,007,299	-580,718,279
Gross liabilities of previous years											28,486
Discounting effect											61,106,400
Gross liabilities for incurred claims included in the financial statements											-519,583,393

355

											in EUR
	Year of occurence
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	TOTAL
Cumulative estimate of net claims
– at the end of year of occurrence	-567,556	-1,854,864	-2,733,651	-3,151,844	-3,609,490	-4,005,585	-4,285,339	-197,181,096	-365,706,832	-422,076,418
– 1 year after year of occurrence	-540,971	-2,002,500	-3,024,020	-4,079,514	-5,211,302	-5,887,283	-34,653,393	-184,315,448	-343,481,883	0
– 2 years after year of occurrence	-538,139	-1,978,188	-2,920,846	-3,844,517	-4,983,052	-24,139,739	-28,227,465	-177,896,911	0	0
– 3 years after year of occurrence	-530,139	-1,902,410	-2,819,719	-3,705,027	-13,913,150	-19,689,445	-23,973,843	0	0	0
– 4 years after year of occurrence	-526,981	-1,869,136	-2,761,587	-17,617,102	-12,563,539	-20,529,873	0	0	0	0
– 5 years after year of occurrence	-502,324	-1,838,694	-104,754,063	-16,853,935	-6,380,933	0	0	0	0	0
– 6 years after year of occurrence	-499,274	243,576	-97,325,340	-20,803,393	0	0	0	0	0	0
– 7 years after year of occurrence	-281,234	-321,480	-90,600,484	0	0	0	0	0	0	0
– 8 years after year of occurrence	-442,156	-695,651	0	0	0	0	0	0	0	0
– 9 years after year of occurrence	796,055	0	0	0	0	0	0	0	0	0
Cumulative payments up to the balance sheet date	-453,030	-1,150,741	-5,681,031	-6,803,850	-2,204,198	-3,888,698	-13,447,749	-162,321,780	-305,266,602	-305,813,692
Net liabilities	1,249,086	455,090	-84,919,452	-13,999,543	-4,176,735	-16,641,175	-10,526,094	-15,575,132	-38,215,281	-116,262,726	-298,611,963
Net liabilities of previous years											8,726,131
Discounting effect											50,733,006
Net liabilities for incurred claims included in the financial statements											-239,152,826

356

Life claims development of Zavarovalnica Triglav

											in EUR
	Year of occurence
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	TOTAL
Cumulative estimate of net claims
									-
– at the end of year of occurrence	-13,258,710	-14,386,984	-21,647,714	-52,592,395	-33,459,027	-39,599,423	-49,550,045	-87,637,062	159,785,854	-179,972,130
									-
– 1 year after year of occurrence	-13,258,710	-13,678,534	-20,232,266	-51,586,961	-32,203,398	-37,415,710	-76,465,375	-85,847,606	157,764,063	0
– 2 years after year of occurrence	-13,346,636	-13,599,658	-20,022,748	-51,163,571	-31,737,178	-70,858,274	-75,807,034	-85,243,559	0	0
– 3 years after year of occurrence	-13,390,813	-13,615,224	-19,859,824	-51,096,161	-64,199,193	-70,646,080	-75,858,750	0	0	0
– 4 years after year of occurrence	-13,424,985	-13,608,409	-19,880,634	-96,446,139	-64,211,232	-70,830,437	0	0	0	0
– 5 years after year of occurrence	-13,456,782	-13,637,568	-37,427,115	-96,397,582	-64,392,599	0	0	0	0	0
– 6 years after year of occurrence	-13,487,784	-30,139,837	-37,425,558	-96,460,959	0	0	0	0	0	0
– 7 years after year of occurrence	-29,796,316	-30,125,684	-37,481,286	0	0	0	0	0	0	0
– 8 years after year of occurrence	-29,811,982	-30,169,037	0	0	0	0	0	0	0	0
– 9 years after year of occurrence	-29,828,766	0	0	0	0	0	0	0	0	0
									-
Cumulative payments up to the balance sheet date	-29,675,429	-30,017,834	-37,144,076	-96,058,612	-63,958,612	-70,173,594	-74,806,382	-83,192,232	153,164,749	-157,750,360
Net liabilities	-153,337	-151,203	-337,210	-402,347	-433,987	-656,843	-1,052,367	-2,051,327	-4,599,314	-22,221,770	-32,059,706
Net liabilities of previous years											-173,630
Discounting effect											784,920
Net liabilities for incurred claims included in the financial statements											-31,448,416

357

3.2

Reinsurance business

3.2.1

Assumptions and accounting estimates used in the valuation of reinsurance contracts

The Group's reinsurance contracts are included in the non-life, life and health insurance

segments. The Company's reinsurance contracts are included only in the non-life insurance

segment. The premium allocation approach (PAA) is used for all Group's and Company's

reinsurance contracts.

The key assumptions in the valuation of reinsurance contracts are described in Section 3.1.1.

3.2.2

Reinsurance contract assets and liabilities

Reinsurance contract assets and liabilities of the Triglav Group

				in EUR
Premium allocation approach (PAA)	31 December 2023
	NON-LIFE	LIFE	HEALTH	TOTAL
Reinsurance contract assets	327,345,399	387,756	0	327,733,155
Assets for remaining coverage	8,580,960	2,213	0	8,583,173
Assets for incurred claims	318,764,439	385,543	0	319,149,982
Reinsurance contract liabilities	6,425,493	3,246	31,861	6,460,600
Liabilities for remaining coverage	6,182,395	4,712	31,861	6,218,968
Liabilities for incurred claims	243,098	-1,466	0	241,632
Total net reinsurance contract assets	320,919,906	384,510	-31,861	321,272,555
Net assets for remaining coverage	2,398,565	-2,499	-31,861	2,364,205
Net assets for incurred claims	318,521,341	387,009	0	318,908,350

				in EUR
Premium allocation approach (PAA)	31 December 2022
	NON-LIFE	LIFE	HEALTH	TOTAL
Reinsurance contract assets	181,443,548	7,890,550	0	189,334,098
Assets for remaining coverage	18,053,955	7,579,711	0	25,633,666
Assets for incurred claims	163,389,593	310,839	0	163,700,432
Reinsurance contract liabilities	9,465,063	0	0	9,465,063
Liabilities for remaining coverage	16,169,915	0	0	16,169,915
Liabilities for incurred claims	-6,704,852	0	0	-6,704,852
Total net reinsurance contract assets	171,978,485	7,890,550	0	179,869,035
Net assets for remaining coverage	1,884,040	7,579,711	0	9,463,751
Net assets for incurred claims	170,094,445	310,839	0	170,405,284

358

Reinsurance contract assets and liabilities of Zavarovalnica Triglav

Premium allocation approach (PAA)		in EUR
	31 December 2023	31 December 2022
Reinsurance contract assets	305,976,870	167,888,159
Assets for remaining coverage	25,546,303	22,122,618
Assets for incurred claims	280,430,568	145,765,541
Reinsurance contract liabilities	0	4,052,384
Liabilities for remaining coverage	0	12,546,021
Liabilities for incurred claims	0	-8,493,637
Total net reinsurance contract assets	305,976,870	163,835,775
Net assets for remaining coverage	25,546,303	9,576,597
Net assets for incurred claims	280,430,568	154,259,178

359

3.2.3

Reinsurance income and reinsurance service expenses recognised in profit or loss and other comprehensive income

Reinsurance income and reinsurance service expenses of the Triglav Group

								in EUR
Premium allocation approach (PAA)	2023				2022
	NON-LIFE	LIFE	HEALTH	TOTAL	NON-LIFE	LIFE	HEALTH	TOTAL
Reinsurance income recognised in profit or loss
Reinsurers' shares in claims and other insurance service expenses	253,508,820	1,086,198	0	254,595,018	81,511,046	781,404	0	82,292,450
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	21,228,667	193,618	0	21,422,285	22,718,424	-453,858	0	22,264,566
Changes in reinsurers' shares that relate to underlying onerous contracts	34,663	0	-31,861	2,802	-11,122	0	0	-11,122
Total reinsurance income recognised in profit or loss	274,772,148	1,279,817	-31,861	276,020,104	104,218,346	327,546	0	104,545,892
Reinsurance service expenses recognised in profit or loss
Expected reinsurers' share in insurance income	-244,752,913	339,376	0	-244,413,537	-209,401,834	401,998	0	-208,999,836
Total reinsurance service expenses recognised in profit or loss	-244,752,915	339,376	0	-244,413,539	-209,401,834	401,998	0	-208,999,836
Net income/expenses from reinsurance contracts	30,019,233	1,619,193	-31,861	31,606,565	-105,183,488	729,544	0	-104,453,944
Finance income/expenses from reinsurance contracts
Financial effects from non-performance risk	-606,316	-968	0	-607,284	-1,068,939	-162	0	-1,069,101
Interest accreted	664,423	8,378	0	672,801	59,491	-4,742	0	54,749
Other – effect on other comprehensive income before tax	3,590,303	1,351	0	3,591,654	-6,789,905	-1,426	0	-6,791,331
Total finance income/expenses from reinsurance contracts	3,648,410	8,761	0	3,657,171	-7,799,353	-6,330	0	-7,805,683

360

								in EUR
Premium allocation approach (PAA)	2023				2022
	NON-LIFE	LIFE	HEALTH	TOTAL	NON-LIFE	LIFE	HEALTH	TOTAL
Finance income/expenses from reinsurance contracts
Finance income/expenses recognised in profit or loss	58,108	7,410	0	65,518	-1,009,445	-4,904	0	-1,014,349
Finance income/expenses recognised in other comprehensive income	3,590,307	1,351	0	3,591,658	-6,789,908	-1,426	0	-6,791,334
Total finance income/expenses from reinsurance contracts	3,648,410	8,761	0	3,657,171	-7,799,353	-6,330	0	-7,805,683

361

Reinsurance income and reinsurance service expenses of Zavarovalnica Triglav

		in EUR
Premium allocation approach (PAA)
	2023	2022
Reinsurance income recognised in profit or loss
Reinsurers' shares in claims and other insurance service expenses	219,885,118	58,109,413
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	6,114,790	36,189,481
Changes in reinsurers' shares that relate to underlying onerous contracts	43,662	3,260
Total reinsurance income recognised in profit or loss	226,043,570	94,302,153
Reinsurance service expenses recognised in profit or loss
Expected reinsurers' share in insurance income	-186,595,924	-169,673,411
Total reinsurance service expenses recognised in profit or loss	-186,595,924	-169,673,411
Net income/expenses from reinsurance contracts	39,447,646	-75,371,258
Finance income/expenses from reinsurance contracts
Financial effects from non-performance risk	-410,334	-1,086,297
Interest accreted	520,188	255,875
Other – effect on other comprehensive income before tax	4,090,372	-10,002,491
Total finance income/expenses from reinsurance contracts	4,200,226	-10,832,913

		in EUR
Premium allocation approach (PAA)
	2023	2022
Finance income/expenses from reinsurance contracts
Finance income/expenses recognised in profit or loss	109,854	-830,422
Finance income/expenses recognised in other comprehensive income before taxes	4,090,372	-10,002,491
Total finance income/expenses from reinsurance contracts	4,200,226	-10,832,913

362

3.2.4

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of the

Triglav Group

					in EUR
	NON-LIFE
Premium allocation approach (PAA)	Remaining coverage		Incurred claims		TOTAL
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk
Opening balance of net reinsurance contract assets/liabilities as at 1 January 2023	1,882,869	1,172	154,897,985	15,196,460	171,978,486
Reinsurance contract assets	18,052,787	1,168	149,247,690	14,141,903	181,443,548
Reinsurance contract liabilities	-16,169,918	4	5,650,295	1,054,557	-9,465,062
Changes in profit or loss and/or other comprehensive income	-244,750,523	34,667	273,038,314	5,293,611	33,616,069
Reinsurance income – amounts recoverable from reinsurers
Reinsurers' shares in claims	0	0	242,806,688	10,702,131	253,508,819
Reinsurers' shares in other insurance service expenses	0	0	0	0	0
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	0	0	27,095,509	-5,866,843	21,228,666
Changes in reinsurers' shares that relate to underlying onerous contracts	0	34,663	0	0	34,663
Total reinsurance income – amounts recoverable from reinsurers	0	34,663	269,902,197	4,835,288	274,772,148
Reinsurance service expenses – premium income ceded to reinsurers	-244,752,915	0	0	0	-244,752,915
Reinsurance investment components	0	0	0	0	0
Finance income/expenses from reinsurance contracts	0	3	3,795,834	458,894	4,254,731
Financial effects from non-performance risk	0	0	-606,321	0	-606,321
Effect of exchange rate differences	2,392	1	-53,396	-571	-51,574
Cash flows	245,230,380	0	-129,905,029	0	115,325,351
Premiums paid	245,230,380	0	0	0	245,230,380
Reinsurance service expenses recovered for insurance contracts issued	0	0	-129,905,029	0	-129,905,029
Reinsurance acquisiton cash flows	0	0	0	0	0
Closing balance of net reinsurance contract assets/liabilities as at 31 December 2023	2,362,726	35,839	298,031,270	20,490,071	320,919,906
Reinsurance contract assets	8,545,118	35,842	298,210,415	20,554,024	327,345,399
Reinsurance contract liabilities	-6,182,392	-3	-179,145	-63,953	-6,425,493

363

					in EUR
	NON-LIFE
Premium allocation approach (PAA)	Remaining coverage		Incurred claims
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	TOTAL
Opening balance of net reinsurance contract assets/liabilities as at 1 January 2022	15,156,782	12,294	127,725,885	12,631,115	155,526,076
Reinsurance contract assets	19,393,064	12,063	125,772,290	12,498,679	157,676,096
Reinsurance contract liabilities	-4,236,282	231	1,953,595	132,436	-2,150,020
Changes in profit or loss and/or other comprehensive income	-209,407,064	-11,122	93,833,240	2,565,345	-113,019,601
Reinsurance income – amounts recoverable from reinsurers
Reinsurers' shares in claims	0	0	75,886,717	5,624,327	81,511,044
Reinsurers' shares in other insurance service expenses	0	0	0	0	0
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	0	0	25,110,269	-2,391,845	22,718,424
Changes in reinsurers' shares that relate to underlying onerous contracts	0	-11,122	0	0	-11,122
Total reinsurance income – amounts recoverable from reinsurers	0	-11,122	100,996,986	3,232,482	104,218,346
Reinsurance service expenses – premium income ceded to reinsurers	-209,401,834	0	0	0	-209,401,834
Reinsurance investment components	0	0	0	0	0
Finance income/expenses from reinsurance contracts	0	1	-6,064,076	-666,339	-6,730,414
Financial effects from non-performance risk	0	0	-1,068,939	0	-1,068,939
Effect of exchange rate differences	-5,230	-1	-30,731	-798	-36,760
Cash flows	196,133,150	0	-66,661,140	0	129,472,010
Premiums paid	196,133,150	0	0	0	196,133,150
Reinsurance service expenses recovered for insurance contracts issued	0	0	-66,661,140	0	-66,661,140
Reinsurance acquisiton cash flows	0	0	0	0	0
Closing balance of net reinsurance contract assets/liabilities as at 31 December 2022	1,882,868	1,172	154,897,985	15,196,460	171,978,485
Reinsurance contract assets	18,052,787	1,168	149,247,690	14,141,903	181,443,548
Reinsurance contract liabilities	-16,169,919	4	5,650,295	1,054,557	-9,465,063

364

					in EUR
	LIFE
Premium allocation approach (PAA)	Remaining coverage		Incurred claims
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	TOTAL
Opening balance of net reinsurance contract assets/liabilities as at 1 January 2023	7,579,711	0	293,345	17,494	7,890,550
Reinsurance contract assets	7,579,711	0	293,345	17,494	7,890,550
Reinsurance contract liabilities	0	0	0	0	0
Changes in profit or loss and/or other comprehensive income	339,376	0	1,284,213	4,362	1,627,951
Reinsurance income – amounts recoverable from reinsurers
Reinsurers' shares in claims	0	0	1,065,930	20,268	1,086,198
Reinsurers' shares in other insurance service expenses	0	0	0	0	0
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	0	0	210,073	-16,454	193,619
Changes in reinsurers' shares that relate to underlying onerous contracts	0	0	0	0	0
Total reinsurance income – amounts recoverable from reinsurers	0	0	1,276,003	3,814	1,279,817
Reinsurance service expenses – premium income ceded to reinsurers	339,376	0	0	0	339,376
Reinsurance investment components	0	0	0	0	0
Finance income/expenses from reinsurance contracts	0	0	9,179	549	9,728
Financial effects from non-performance risk	0	0	-968	0	-968
Effect of exchange rate differences	0	0	-1	-1	-2
Cash flows	-7,921,586	0	-1,212,435	0	-9,134,021
Premiums paid	-7,921,586	0	0	0	-7,921,586
Reinsurance service expenses recovered for insurance contracts issued	0	0	-1,212,435	0	-1,212,435
Reinsurance acquisiton cash flows	0	0	0	0	0
Closing balance of net reinsurance contract assets/liabilities as at 31 December 2023	-2,499	0	365,153	21,856	384,510
Reinsurance contract assets	2,213	0	363,770	21,773	387,756
Reinsurance contract liabilities	-4,712	0	1,383	83	-3,246

365

					in EUR
	LIFE
Premium allocation approach (PAA)	Remaining coverage		Incurred claims
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non-financial risk	TOTAL
Opening balance of net reinsurance contract assets/liabilities as at 1 January 2022	4,041,339	0	816,519	48,874	4,906,732
Reinsurance contract assets	4,041,339	0	816,519	48,874	4,906,732
Reinsurance contract liabilities	0	0	0	0	0
Changes in profit or loss and/or other comprehensive income	401,999	0	352,596	-31,380	723,215
Reinsurance income – amounts recoverable from reinsurers
Reinsurers' shares in claims	0	0	764,470	16,934	781,404
Reinsurers' shares in other insurance service expenses	0	0	0	0	0
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	0	0	-405,892	-47,966	-453,858
Changes in reinsurers' shares that relate to underlying onerous contracts	0	0	0	0	0
Total reinsurance income – amounts recoverable from reinsurers	0	0	358,578	-31,032	327,546
Reinsurance service expenses – premium income ceded to reinsurers	401,998	0	0	0	401,998
Reinsurance investment components	0	0	0	0	0
Finance income/expenses from reinsurance contracts	0	0	-5,820	-348	-6,168
Financial effects from non-performance risk	0	0	-162	0	-162
Effect of exchange rate differences	1	0	0	0	1
Cash flows	3,136,373	0	-875,770	0	2,260,603
Premiums paid	3,136,373	0	0	0	3,136,373
Reinsurance service expenses recovered for insurance contracts issued	0	0	-875,770	0	-875,770
Reinsurance acquisiton cash flows	0	0	0	0	0
Closing balance of net reinsurance contract assets/liabilities as at 31 December 2022	7,579,711	0	293,345	17,494	7,890,550
Reinsurance contract assets	7,579,711	0	293,345	17,494	7,890,550
Reinsurance contract liabilities	0	0	0	0	0

366

Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of

Zavarovalnica Triglav

					in EUR
Premium allocation approach (PAA)	Remaining coverage		Incurred claims
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non- financial risk	TOTAL
Opening balance of net reinsurance contract assets/liabilities as at 1 January 2023	9,573,141	3,456	139,002,526	15,256,651	163,835,775
Reinsurance contract assets	22,119,162	3,456	131,892,269	13,873,271	167,888,159
Reinsurance contract liabilities	-12,546,021	0	7,110,257	1,383,380	-4,052,384
Changes in profit or loss and/or other comprehensive income	-190,034,413	43,675	230,877,291	2,761,319	43,647,872
Reinsurance income – amounts recoverable from reinsurers
Reinsurers' shares in claims	0	0	209,365,580	10,519,538	219,885,118
Reinsurers' shares in other insurance service expenses	0	0	0	0	0
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	0	0	14,457,853	-8,343,063	6,114,790
Changes in reinsurers' shares that relate to underlying onerous contracts	0	43,662	0	0	43,662
Total reinsurance income – amounts recoverable from reinsurers	0	43,662	223,823,432	2,176,476	226,043,570
Reinsurance service expenses – premium income ceded to reinsurers	-186,595,924	0	0	0	-186,595,924
Reinsurance investment components	-3,438,489	0	3,438,489	0	0
Finance income/expenses from reinsurance contracts	0	14	4,025,703	584,843	4,610,560
Financial effects from non-performance risk	0	0	-410,334	0	-410,334
Cash flows	205,960,443	0	-107,467,219	0	98,493,223
Premiums paid	205,960,443	0	0	0	205,960,443
Reinsurance service expenses recovered for insurance contracts issued	0	0	-107,467,219	0	-107,467,219
Reinsurance acquisiton cash flows	0	0	0	0	0
Closing balance of net reinsurance contract assets/liabilities as at 31 December 2023	25,499,171	47,132	262,412,597	18,017,970	305,976,870
Reinsurance contract assets	25,499,171	47,132	262,412,597	18,017,970	305,976,870
Reinsurance contract liabilities	0	0	0	0	0

367

					in EUR
Premium allocation approach (PAA)	Remaining coverage		Incurred claims
	Excluding the loss component	Loss component	Estimates of the present value of the future cash flows	Risk adjustment for non- financial risk	TOTAL
Opening balance of net reinsurance contract assets/liabilities as at 1 January 2022	23,116,787	196	101,549,805	11,882,321	136,549,108
Reinsurance contract assets	23,159,395	196	101,509,643	11,881,705	136,550,939
Reinsurance contract liabilities	-42,608	0	40,162	616	-1,830
Changes in profit or loss and/or other comprehensive income	-172,303,612	3,261	82,721,849	3,374,331	-86,204,171
Reinsurance income – amounts recoverable from reinsurers
Reinsurers' shares in claims	0	0	52,538,861	5,570,551	58,109,413
Reinsurers' shares in other insurance service expenses	0	0	0	0	0
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims	0	0	37,247,985	-1,058,505	36,189,481
Changes in reinsurers' shares that relate to underlying onerous contracts	0	3,260	0	0	3,260
Total reinsurance income – amounts recoverable from reinsurers	0	3,260	89,786,847	4,512,046	94,302,153
Reinsurance service expenses – premium income ceded to reinsurers	-169,673,411	0	0	0	-169,673,411
Reinsurance investment components	-2,630,201	0	2,630,201	0	0
Finance income/expenses from reinsurance contracts	0	1	-8,608,902	-1,137,716	-9,746,617
Financial effects from non-performance risk	0	0	-1,086,297	0	-1,086,297
Cash flows	158,759,966	0	-45,269,128	0	113,490,838
Premiums paid	158,759,966	0	0	0	158,759,966
Reinsurance service expenses recovered for insurance contracts issued	0	0	-45,269,128	0	-45,269,128
Reinsurance acquisiton cash flows	0	0	0	0	0
Closing balance of net reinsurance contract assets/liabilities as at 31 December 2022	9,573,141	3,456	139,002,526	15,256,651	163,835,775
Reinsurance contract assets	22,119,162	3,456	131,892,269	13,873,271	167,888,159
Reinsurance contract liabilities	-12,546,021	0	7,110,257	1,383,380	-4,052,384

368

3.3

Investments in subsidiaries, associates and joint ventures

Zavarovalnica Triglav's interests in subsidiaries

	PARTICIPATING INTEREST, SHARE OF VOTING RIGHTS		CARRYING AMOUNT
	(%)		(in EUR)
COMPANY NAME	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Pozavarovalnica Triglav Re, d.d.	100.00	100.00	9,750,752	9,750,752
Triglav, Zdravstvena zavarovalnica, d.d.	100.00	100.00	26,235,909	3,735,886
Triglav INT, d.o.o.	100.00	100.00	100,270,730	89,770,730
Triglav, pokojninska družba, d.d.	100.00	100.00	52,070,000	52,070,000
Triglav, Upravljanje nepremičnin, d.o.o.	100.00	100.00	24,493,300	24,493,300
Triglav Skladi, d.o.o.	100.00	100.00	2,076,723	2,076,723
Triglav Avtoservis, d.o.o.	100.00	100.00	194,217	194,216
Triglav Svetovanje, d.o.o.	100.00	100.00	279,736	279,736
Zavod Vse bo v redu	100.00	100.00	100,000	100,000
Triglav penzisko društvo, a.d., Skopje	100.00	100.00	3,889,000	2,889,000
TOTAL			219,360,367	185,360,343

Triglav Group's interests in associates and joint ventures

	PARTICIPATING INTEREST, SHARE OF VOTING RIGHTS		CARRYING AMOUNT
	(%)		(in EUR)
COMPANY NAME	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Nama, d.d.	39.15	39.15	4,648,981	4,496,424
Triglavko, d.o.o.	38.47	38.47	18,509	18,562
TRIGAL, upravljanje naložb in svetovanje, d.o.o.	49.90	49.90	10,925,240	10,925,240
Diagnostični center Bled d.o.o.	50.00	50.00	21,560,001	21,856,109
Alifenet, d.o.o.	23.58	23.58	66,110	73,202
Društvo za upravljanje EDPF, a.d.	34.00	34.00	489,221	440,647
TOTAL			37,708,062	37,810,184

Zavarovalnica Triglav's interests in associates and joint ventures

	PARTICIPATING INTEREST, SHARE OF VOTING RIGHTS		CARRYING AMOUNT
	(%)		(in EUR)
COMPANY NAME	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Nama, d.d.	39.07	39.07	4,648,981	4,496,424
Triglavko, d.o.o.	38.47	38.47	18,509	18,562
TRIGAL, upravljanje naložb in svetovanje, d.o.o.	49.90	49.90	10,925,240	10,925,240
Diagnostični center Bled d.o.o.	50.00	50.00	21,560,001	21,856,109
Alifenet, d.o.o.	23.58	23.58	66,110	73,202
TOTAL			37,218,841	37,369,536

369

Zavarovalnica Triglav's investments in subsidiaries, associates and joint ventures

		in EUR
Zavarovalnica Triglav	Investments in subsidiaries	Investments in associates and joint ventures
As at 1 January 2022	131,924,683	35,591,377
Capital increase of companies	57,355,448	0
Revaluation under the equity method	0	1,778,159
Impairment	-3,919,788	0
As at 31 December 2022 = 1 January 2023	185,360,343	37,369,536
Capital increase of companies	34,000,024	0
Revaluation under the equity method	0	2,131,016
Impairment	0	-2,281,711
As at 31 December 2023	219,360,367	37,218,841

Impairment of Zavarovalnica Triglav's investments in subsidiaries, associates and joint ventures

In 2023, the Company assessed signs of impairment of investments in associates. 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 associates was recognised in the Company's separate financial

statements under impairment expenses for non-financial assets, as follows:

▪

in the amount of EUR 2,274,620, which relates to the impairment of investment in

Diagnostični center Bled d.o.o.;

▪

in the amount of EUR 7,091, which relates to the impairment of investment in Alifenet

d.o.o.

The following assumptions were taken into account to determine the recoverable amount of

investment in the associate Diagnostični center Bled d.o.o.:

▪

expected cash flows based on the companies' business plans for 2024–2036,

▪

the discount rate of 10.23% based on weighted average cost of capital (WACC);

▪

the expected long-term growth rate of 2.5%.

The following assumptions were taken into account to determine the recoverable amount of

investment in the associate Alifenet d.o.o.:

▪

impairment for negative net earnings in 2021–2022.

370

3.4

Financial investments and their return

3.4.1

Types of financial investments

Types of financial investments of the Triglav Group

				in EUR
TYPES OF INVESTMENTS OF THE TRIGLAV NA GROUP AS AT 31 Dec2023	FVOCI	AC	FVTPL	TOTAL
Debt securities and other fixed-income securities	1,668,940,444	156,334,533	34,769,923	1,860,044,900
Equity securities	4,026,488	0	705,544,188	709,570,676
Bank deposits	0	65,794,876	0	65,794,876
Loans given	0	6,557,904	0	6,557,904
Other financial instruments	0	872,414	0	872,414
TOTAL	1,672,966,932	229,559,727	740,314,111	2,642,840,770

				in EUR
TYPES OF INVESTMENTS OF THE TRIGLAV NA GROUP AS AT 31 Dec 2022	FVOCI	AC	FVTPL	TOTAL
Debt securities and other fixed-income securities	1,616,828,258	154,827,769	30,000,146	1,801,656,173
Equity securities	17,325,257	0	652,024,326	669,349,583
Bank deposits	0	79,458,018	0	79,458,018
Loans given	0	5,784,491	0	5,784,491
Other financial instruments	0	934,751	0	934,751
TOTAL	1,634,153,515	241,005,029	682,024,472	2,557,183,016

In the Group's total financial instruments as at 31 December 2023, equity securities measured

at fair value through profit or loss in the amount of EUR 540,890,478 refer to unit-linked

insurance assets. As at 31 December 2022, these investments amounted to EUR 469,528,905.

As at 31 December 2023 and as at 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

investments by the issuer was 1.69% as at the reporting date (31 December 2022: 1.92%).

371

Types of financial investments of Zavarovalnica Triglav

				in EUR
TYPES OF INVESTMENTS OF ZAVAROVALNICA TRIGLAV AS AT 31 Dec 2023	FVOCI	AC	FVTPL	TOTAL
Debt securities and other fixed-income securities	1,091,531,303	131,083,304	22,481,910	1,245,096,517
Equity securities	2,641,391	0	628,946,586	631,587,976
Bank deposits	0	7,212,364	0	7,212,364
Loans given	0	4,547,639	0	4,547,639
TOTAL	1,094,172,694	142,843,306	651,428,496	1,888,444,496

				in EUR
TYPES OF INVESTMENTS OF ZAVAROVALNICA TRIGLAV AS AT 31 Dec 2022	FVOCI	AC	FVTPL	TOTAL
Debt securities and other fixed-income securities	1,127,394,658	127,868,471	23,043,218	1,278,306,347
Equity securities	15,938,294	0	564,456,297	580,394,591
Bank deposits	0	19,489,668	0	19,489,668
Loans given	0	4,409,207	0	4,409,207
TOTAL	1,143,332,952	151,767,345	587,499,515	1,882,599,813

The Company's total financial investments include equity securities measured at fair value

through profit or loss, of which unit-linked insurance assets accounted for EUR 512,824,007 as

at 31 December 2023. As at 31 December 2022, these investments amounted to EUR

446,142,033.

As at 31 December 2023 and as at 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

investments by the issuer was 2.17% as at the reporting date (31 December 2022: 2.43%).

Equity securities of the Triglav Group measured at fair value through other comprehensive income

				in EUR
EQUITY SECURITIES AT FVOCI	Carrying amount 31 December 2023	Dividends in 2023	Carrying amount 31 December 2022	Dividends in 2022
ELEKTRO PRIMORSKA	2,641,391	0	3,102,229	134,880
KRKG SV	0	813,173	11,335,136	2,164,707
LKPG SV	0	0	0	129,468
PETG SV	0	0	0	704,880
POSR SV	0	38,773	1,085,616	89,285
TLSG SV	0	0	415,313	43,011
SAVR SV	78,671	0	78,671	0
BSRSRK1 BT	1,197,139	98,048	1,162,005	86,858
REGISTAR VRIJ.PAPIRA BiH	9,286	0	9,286	0
ZAVODVSEBO	100,000	0	100,000	0
TOTAL	4,026,487	949,994	17,288,257	3,353,087

372

				in EUR
	2023		2022
DISPOSAL OF EQUITY SECURITIES AT FVOCI	Carrying amount at disposal	Realised gains/losses	Carrying amount at disposal	Realised gains/losses
KRKG SV	13,311,813	11,525,418	24,363,857	20,191,205
LKPG SV	0	0	2,893,378	1,226,669
PETG SV	0	0	9,487,182	6,324,946
POSR SV	575,389	352,750	264,021	77,849
TLSG SV	421,634	-247,523	36,103	-55,411
TOTAL	14,308,836	11,630,646	37,044,541	27,765,259

Equity securities of Zavarovalnica Triglav Group measured at fair value through other

comprehensive income

				in EUR
EQUITY SECURITIES AT FVOCI	Carrying amount 31 December 2023	Dividends in 2023	Carrying amount 31 December 2022	Dividends in 2022
ELEKTRO PRIMORSKA	2,641,391	0	3,102,229	134,880
KRKG SV	0	813,173	11,335,136	2,073,191
LKPG SV	0	0	0	129,468
PETG SV	0	0	0	704,880
POSR SV	0	38,773	1,085,616	89,285
TLSG SV	0	0	415,313	43,011
ZAVODVSEBO	100,000	0	100,000	0
TOTAL	2,741,391	851,946	16,038,294	3,174,714

In 2023 and 2022, the Group and the Company sold part of the equity investments disclosed

through other comprehensive income in order to manage market risks, primarily to reduce

equity exposure in local markets. An overview of the securities sold is provided in the table

below.

				in EUR
	2023		2022
DISPOSAL OF EQUITY SECURITIES AT FVOCI	Carrying amount at disposal	Realised gains/losses	Carrying amount at disposal	Realised gains/losses
KRKG SV	13,311,813	11,525,418	22,546,409	18,966,758
LKPG SV	0	0	2,893,378	1,226,669
PETG SV	0	0	9,487,182	6,324,946
POSR SV	575,389	352,750	264,021	77,849
TLSG SV	421,634	-247,523	36,103	-55,411
TOTAL	14,308,836	11,630,646	35,227,093	26,540,812

373

3.4.2

Movement in financial investments

Movement in financial investments s of the Triglav Group

				in EUR
	FVOCI	AC	FVTPL	TOTAL
As at 1 January 2022	1,959,630,084	222,389,210	735,138,240	2,917,157,534
Acquisitions	578,933,527	65,007,666	200,396,929	844,338,122
Disposals	-512,655,315	-1,129,300	-154,579,767	-668,364,382
Maturities	-160,165,910	-53,136,924	-10,965,486	-224,268,320
Measurement of financial investments through profit or loss	0	0	-83,412,618	-83,412,618
Measurement of financial investments at FVOCI	-245,827,537	0	0	-245,827,537
Impairment/reversal of impairment	-7,663,347	117,583	0	-7,545,764
Premiums and discounts	-5,242,850	4,944,575	0	-298,275
Interest income	23,302,325	2,873,774	798,072	26,974,171
Realised gains/losses in profit or loss	-23,907,163	1,689	-5,552,775	-29,458,249
Realised gains/losses in retained earnings	27,765,259	0	0	27,765,259
Exchange rate differences	-15,558	-63,244	201,877	123,075
As at 31 December 2022 = 1 January 2023	1,634,153,515	241,005,029	682,024,472	2,557,183,016
Acquisitions	458,642,311	31,112,335	240,631,709	730,386,355
Disposals	-262,526,538	-30,730	-232,167,933	-494,725,201
Maturities	-255,221,278	-51,314,418	-6,952,198	-313,487,894
Measurement of financial investments through profit or loss	0	0	47,832,182	47,832,182
Measurement of financial investments at FVOCI	70,866,543	0	0	70,866,543
Impairment/reversal of impairment	1,926,962	364,796	0	2,291,758
Premiums and discounts	-1,174,762	5,162,258	0	3,987,496
Interest income	26,691,815	3,278,149	1,140,837	31,110,801
Realised gains/losses in profit or loss	-9,304,015	464	7,877,436	-1,426,115
Realised gains/losses in retained earnings	11,630,647	0	0	11,630,647
Exchange rate differences	-2,718,268	-18,156	-72,394	-2,808,818
As at 31 December 2023	1,672,966,932	229,559,727	740,314,111	2,642,840,770

374

Movement in financial investments of Zavarovalnica Triglav

				in EUR
	FVOCI	AC	FVTPL	TOTAL
As at 1 January 2022	1,458,144,469	165,556,736	637,133,037	2,260,834,241
Acquisitions	415,387,078	5,330,799	157,891,908	578,609,785
Disposals	-443,295,715	0	-125,333,317	-568,629,032
Maturities	-101,502,367	-25,845,420	-6,260,732	-133,608,519
Measurement of financial investments through profit or loss	0	0	-71,224,522	-71,224,522
Measurement of financial investments at FVOCI	-194,455,646	0	0	-194,455,646
Impairment/reversal of impairment	-5,127,329	-4,215	0	-5,131,544
Premiums and discounts	-4,705,038	4,944,575	0	239,537
Interest income	14,326,328	1,824,352	688,700	16,839,380
Realised gains/losses in profit or loss	-21,945,661	0	-5,383,494	-27,329,155
Realised gains/losses in retained earnings	26,540,812	0	0	26,540,812
Exchange rate differences	-33,978	-39,482	-12,065	-85,525
As at 31 December 2022 = 1 January 2023	1,143,332,953	151,767,345	587,499,515	1,882,599,813
Acquisitions	214,544,134	2,224,287	182,513,415	399,281,836
Disposals	-199,922,053	0	-167,749,103	-367,671,156
Maturities	-137,732,523	-17,986,681	-1,454,890	-157,174,094
Measurement of financial investments through profit or loss	0	0	42,461,437	42,461,437
Measurement of financial investments at FVOCI	52,165,217	0	0	52,165,217
Impairment/reversal of impairment	1,199,169	96,281	0	1,295,450
Premiums and discounts	-1,032,438	5,162,258	0	4,129,820
Interest income	15,132,004	1,576,047	773,339	17,481,390
Realised gains/losses in profit or loss	-5,145,593	0	7,398,937	2,253,344
Realised gains/losses in retained earnings	11,630,646	0	0	11,630,646
Exchange rate differences	1,178	3,769	-14,154	-9,207
As at 31 December 2023	1,094,172,694	142,843,306	651,428,496	1,888,444,496

3.4.3

Return on financial investments

Return on financial investments of the Triglav Group

		in EUR
	2023	2022
Interest income calculated using the effective interest method	35,098,297	26,675,896
Dividend income	2,705,064	4,686,546
Net gains/losses on financial investments at FVTPL	55,709,619	-88,965,394
Realised gains	8,493,234	721,582
Realised losses	-615,797	-6,274,358
Unrealised gains	52,042,824	8,806,754
Unrealised losses	-4,210,642	-92,219,372
Net gains/losses on financial investments at AC	464	1,689
Realised gains	464	1,689
Net gains/losses on financial investments at FVOCI	-9,304,016	-23,907,162
Realised gains	407,630	6,460,356
Realised losses	-9,711,646	-30,367,518
Net impairment/reversal of impairment	2,291,758	-7,545,764
Impairment expenses	-1,890,420	-11,258,590
Income from reversal of impairment	4,182,178	3,712,826
Other income and expenses from investing activities	-2,669,999	430,688
Income from positive exchange rate differences	39,119	2,051,813
Expenses from negative exchange rate differences	-2,847,937	-1,928,738
Other income from financial investments	771,502	839,727
Other expenses from financial investments	-632,683	-532,114
TOTAL	83,831,187	-88,623,501

375

The total return on the Triglav Group's financial investments in 2023 comprises the return on

unit-linked insurance contract assets of EUR 49,559,643, of which net unrealised gains

accounted for EUR 44,423,988. Last year, the return on unit-linked insurance contract assets was

negative at EUR

–88,397,473, of which net unrealised losses accounted for EUR

77,616,840.

Return on financial investments of Zavarovalnica Triglav

		in EUR
	2023	2022
Interest income calculated using the effective interest method	21,611,210	17,078,917
Dividend income	2,441,534	4,410,224
Net gains/losses on financial investments at FVTPL	49,860,374	-76,608,015
Realised gains	7,627,745	634,099
Realised losses	-228,807	-6,017,592
Unrealised gains	46,132,539	8,716,933
Unrealised losses	-3,671,102	-79,941,455
Net gains/losses on financial investments at FVOCI	-5,145,594	-21,945,662
Realised gains	331,465	5,467,159
Realised losses	-5,477,059	-27,412,821
Net impairment/reversal of impairment	1,295,450	-5,131,544
Impairment expenses	-964,705	-6,882,234
Income from reversal of impairment	2,260,155	1,750,690
Other income and expenses from investing activities	71,751	544,125
Income from positive exchange rate differences	30,871	102,098
Expenses from negative exchange rate differences	-40,078	-187,623
Other income from financial investments	616,855	905,968
Other expenses from financial investment	-535,896	-276,319
TOTAL	70,134,725	-81,651,955

The total return on Zavarovalnica Triglav's financial investments in 2023 comprises the return

on unit-linked insurance contract assets of EUR 46,224,967, of which net unrealised gains

accounted for EUR 41,194,359. Last year, the return on unit-linked insurance contract assets was

negative at EUR –77,040,940, of which net unrealised losses accounted for EUR 73,331,397.

3.4.4

Impairment of financial investments

Movement in ECL impairment of the Triglav Group

						in EUR
	31 December 2023			31 December 2022
	Gross carrying amount	ECL adjustment	Amortised cost	Gross carrying amount	ECL adjustment	Amortised cost
Debt securities at FVOCI	1,797,038,900	-6,712,145	1,790,326,755	1,827,909,430	-8,637,987	1,819,271,443
Debt securities at AC	156,437,923	-103,390	156,334,533	154,984,088	-156,319	154,827,769
Loans and deposits at AC	73,330,169	-977,389	72,352,780	86,542,236	-1,299,727	85,242,509
TOTAL	2,026,806,992	-7,792,924	2,019,014,068	2,069,435,754	-10,094,033	2,059,341,721

376

				in EUR
Debt securities at FVOCI	Level 1	Level 2	Level 3	TOTAL
Gross carrying amount as at 1 January 2022	1,877,521,684	5,233,895	0	1,882,755,579
Acquisitions	565,425,871	726,088	0	566,151,959
Disposals, maturities	-633,485,798	-1,740,241	-192,625	-635,418,664
Interest	16,249,218	167,220	166,006	16,582,444
Transfer to Level 1	-10,977,899	6,095,922	4,881,977	0
Transfer to Level 2	2,368,382	-2,368,382	0	0
Transfer to Level 3	-3,127,396	0	3,127,396	0
Other changes	-2,163,900	2,012	0	-2,161,888
Gross carrying amount as at 31 December 2022 = 1 January 2023	1,811,810,162	8,116,514	7,982,754	1,827,909,430
Acquisitions	457,853,313	50,249	0	457,903,562
Disposals, maturities	25,081,913	305,629	98,306	25,485,848
Interest	-513,595,848	-236,502	-192,623	-514,024,973
Transfer to Level 1	-1,380,039	1,380,039	0	0
Transfer to Level 2	774,724	-774,724	0	0
Other changes	-234,375	-592	0	-234,967
Gross carrying amount as at 31 December 2023	1,780,309,850	8,840,613	7,888,437	1,797,038,900

				in EUR
Debt securities at FVOCI	Level 1	Level 2	Level 3	TOTAL
ECL adjustment as at 1 January 2022	-503,816	-164,244	0	-668,060
Acquisitions	-948,022	-3,800	0	-951,822
Disposals, maturities	549,903	597	0	550,500
Change in ECL adjustment	-3,456,600	-284,320	-3,774,159	-7,515,079
Transfer to Level 2	57,518	-57,518	0	0
Transfer to Level 3	3,852	0	-3,852	0
Other changes	-53,546	20	0	-53,526
ECL adjustment as at 31 December 2022 = 1 January 2023	-4,350,711	-509,265	-3,778,011	-8,637,987
Acquisitions	-206,194	0	0	-206,194
Disposals, maturities	295,172	0	0	295,172
Change in ECL adjustment	1,495,581	92,377	248,490	1,836,448
Transfer to Level 1	434	-434	0	0
Transfer to Level 2	-182,339	182,339	0	0
Other changes	446	-30	0	416
ECL adjustment as at 31 December 2023	-2,947,611	-235,013	-3,529,521	-6,712,145

377

			in EUR
Debt securities at AC	Level 1	Level 2	TOTAL
Gross carrying amount as at 1 January 2022	146,648,433	0	146,648,433
Acquisitions	25,439,767	0	25,439,767
Disposals, maturities	-23,938,628	0	-23,938,628
Interest	6,834,518	0	6,834,518
Transfer to Level 2	-495,350	495,350	0
Gross carrying amount as at 31 December 2022 = 1 January 2023	154,488,740	495,350	154,984,090
Disposals, maturities	-5,026,247	0	-5,026,247
Interest	6,470,425	2,901	6,473,326
Transfer to Level 1	498,251	-498,251	0
Other changes	6,756	0	6,756
Gross carrying amount as at 31 December 2023	156,437,925	0	156,437,925

			in EUR
Debt securities at AC	Level 1	Level 2	TOTAL
ECL adjustment as at 1 January 2022	-15,102	0	-15,102
Acquisitions	-746	0	-746
Disposals, maturities	348	0	348
Change in ECL adjustment	-140,614	-204	-140,818
Transfer to Level 2	260	-260	0
ECL adjustment as at 31 December 2022 = 1 January 2023	-155,854	-464	-156,318
Disposals, maturities	267	0	267
Change in ECL adjustment	52,662	0	52,662
Transfer to Level 1	-464	464	0
ECL adjustment as at 31 December 2023	-103,389	0	-103,389

			in EUR
Loans and deposits at AC	Level 1	Level 3	TOTAL
Gross carrying amount as at 1 January 2022	75,218,802	1,137,595	76,356,397
Acquisitions	39,567,899	0	39,567,899
Disposals, maturities	-30,134,688	-191,219	-30,325,907
Interest	983,831	0	983,831
Other changes	-39,974	-10	-39,984
Gross carrying amount as at 31 December 2022 = 1 January 2023	85,595,870	946,366	86,542,236
Acquisitions	31,112,335	0	31,112,335
Disposals, maturities	-46,265,895	-52,542	-46,318,437
Interest	1,967,081	0	1,967,081
Other changes	26,953	0	26,953
Gross carrying amount as at 31 December 2023	72,436,344	893,824	73,330,168

			in EUR
Loans and deposits at AC	Level 1	Level 3	TOTAL
ECL adjustment as at 1 January 2022	-453,037	-1,154,209	-1,607,246
Acquisitions	-189,616	0	-189,616
Disposals, maturities	80,259	189,716	269,975
Change in ECL adjustment	226,844	0	226,844
Other changes	306	10	316
ECL adjustment as at 31 December 2022 = 1 January 2023	-335,244	-964,483	-1,299,727
Acquisitions	-88,097	0	-88,097
Disposals, maturities	24,320	48,908	73,228
Change in ECL adjustment	337,587	0	337,587
Other changes	-380	0	-380
ECL adjustment as at 31 December 2023	-61,814	-915,575	-977,389

378

Movement in ECL impairment of Zavarovalnica Triglav

						in EUR
	31 December 2023			31 December 2022
	Gross carrying amount	ECL adjustment	Amortised cost	Gross carrying amount	ECL adjustment	Amortised cost
Debt securities at FVOCI	1,197,292,484	-4,216,660	1,193,075,824	1,296,546,271	-5,415,829	1,291,130,443
Debt securities at AC	131,171,044	-87,740	131,083,304	128,009,473	-141,002	127,868,471
Loans and deposits at AC	11,764,380	-4,378	11,760,003	23,946,271	-47,397	23,898,875
TOTAL	1,340,227,907	-4,308,778	1,335,919,130	1,448,502,015	-5,604,227	1,442,897,788

				in EUR
Debt securities at FVOCI	Level 1	Level 2	Level 3	TOTAL
Gross carrying amount as at 1 January 2022	1,383,286,851	2,308,995	0	1,385,595,847
Acquisitions	415,387,077	0	0	415,387,077
Disposals, maturities	-512,298,298	-1,699,338	-106,375	-514,104,011
Interest	9,484,075	84,942	92,911	9,661,928
Transfer to Level 1	-10,825,309	5,943,332	4,881,977	0
Transfer to Level 2	3,888,621	-3,888,621	0	0
Other changes	5,430	0	0	5,430
Gross carrying amount as at 31 December 2022 = 1 January 2023	1,288,928,447	2,749,311	4,868,513	1,296,546,271
Acquisitions	214,544,134	0	0	214,544,134
Disposals, maturities	-327,687,415	-104,875	-106,375	-327,898,665
Interest	13,940,746	106,342	52,477	14,099,565
Transfer to Level 1	-1,579,655	1,579,655	0	0
Transfer to Level 2	1,994,910	-1,994,910	0	0
Other changes	1,178	0	0	1,178
Gross carrying amount as at 31 December 2023	1,190,142,345	2,335,524	4,814,615	1,197,292,484

				in EUR
Debt securities at FVOCI	Level 1	Level 2	Level 3	TOTAL
ECL adjustment as at 1 January 2022	-266,530	-23,399	0	-289,929
Acquisitions	-743,860	-3,800	0	-747,660
Disposals, maturities	486,281	597	0	486,878
Change in ECL adjustment	-2,282,581	-202,520	-2,380,019	-4,865,120
Transfer to Level 2	57,518	-57,518	0	0
Transfer to Level 3	2,135	0	-2,135	0
Other changes	2	0	0	2
ECL adjustment as at 31 December 2022 = 1 January 2023	-2,747,036	-286,640	-2,382,153	-5,415,829
Disposals, maturities	145,457	0	0	145,457
Change in ECL adjustment	770,737	54,754	228,221	1,053,712
Transfer to Level 1	2,549	-2,549	0	0
Transfer to Level 2	-203,451	203,451	0	0
Other changes	-1	0	0	-1
ECL adjustment as at 31 December 2023	-2,031,744	-30,984	-2,153,932	-4,216,660

379

All debt securities and deposits measured at amortised cost are classified into Level 1. The

movements in gross carrying amount and ECL adjustment are shown in the tables below.

	in EUR
Debt securities at AC	TOTAL
Gross carrying amount as at 1 January 2022	140,945,748
Disposals, maturities	-19,279,372
Interest	6,343,097
Gross carrying amount as at 31 December 2022 = 1 January 2023	128,009,473
Disposals, maturities	-2,803,000
Interest	5,964,571
Gross carrying amount as at 31 December 2023	131,171,044

	in EUR
Debt securities at AC	TOTAL
ECL adjustment as at 1 January 2022	-5,881
Disposals, maturities	348
Change in ECL adjustment	-135,469
ECL adjustment as at 31 December 2022 = 1 January 2023	-141,002
Disposals, maturities	107
Change in ECL adjustment	53,155
ECL adjustment as at 31 December 2023	-87,740

	in EUR
Loans and deposits at AC	TOTAL
Gross carrying amount as at 1 January 2022	24,795,172
Acquisitions	5,330,799
Disposals, maturities	-6,566,047
Interest	425,830
Other changes	-39,482
Gross carrying amount as at 31 December 2022 = 1 January 2023	23,946,271
Acquisitions	2,224,287
Disposals, maturities	-15,183,681
Interest	773,735
Other changes	3,768
Gross carrying amount as at 31 December 2023	11,764,380

	in EUR
Loans and deposits at AC	TOTAL
ECL adjustment as at 1 January 2022	-178,303
Acquisitions	-7,882
Disposals, maturities	46,728
Change in ECL adjustment	91,797
Other changes	264
ECL adjustment as at 31 December 2022 = 1 January 2023	-47,397
Disposals, maturities	3,454
Change in ECL adjustment	39,828
Other changes	-263
ECL adjustment as at 31 December 2023	-4,378

380

3.5

Financial contract assets and liabilities

Financial contract assets and liabilities of the Triglav Group

		in EUR
	31 Dec 2023	31 Dec 2022
Financial investments from financial contracts	650,042,171	589,033,089
Receivables from financial contracts	123,066	1,147,412
Cash from financial contracts	23,949,908	23,638,145
Total financial contract assets	674,115,145	613,818,646
Liabilities to pension fund members	671,920,610	611,705,642
Other liabilities to pension funds	2,194,535	2,113,004
Total financial contract liabilities	674,115,145	613,818,646

Financial contract assets and liabilities of Zavarovalnica Triglav

		in EUR
	31 Dec 2023	31 Dec 2022
Financial investments from financial contracts	255,841,271	230,801,335
Receivables from financial contracts	83,130	398,787
Cash from financial contracts	3,699,640	3,768,392
Total financial contract assets	259,624,041	234,968,514
Liabilities to pension fund members	258,978,506	234,454,625
Other liabilities to pension funds	645,535	513,889
Total financial contract liabilities	259,624,041	234,968,514

3.5.1

Types of investments from financial contracts

Types of investments from financial contracts of the Triglav Group

		in EUR
	31 Dec2023	31 Dec 2022
Financial investments from financial contracts
Financial investments at AC	283,215,425	321,859,990
Debt securities and other fixed-income securities	283,215,425	301,388,805
Deposits with banks	0	20,471,185
Financial investments at FVTPL	366,826,746	267,173,099
Debt securities and other fixed-income securities	214,934,774	152,569,812
Equity securities	151,891,972	114,603,287
TOTAL	650,042,171	589,033,089

Types of investment from financial contracts of Zavarovalnica Triglav

		in EUR
	31 Dec 2023	31 Dec 2022
Financial investments from financial contracts
Financial investments at AC	86,215,285	99,398,021
Debt securities and other fixed-income securities	86,215,285	99,398,021
Financial investments at FVTPL	169,625,986	131,403,313
Debt securities and other fixed-income securities	96,181,144	74,475,133
Equity securities	73,444,843	56,928,180
TOTAL	255,841,271	230,801,335

381

3.5.2

Movement in investments from financial contracts

Movement in investments from financial contracts of the Triglav Group

			in EUR
	AC	FVTPL	TOTAL
As at 1 January 2022	11,225,305	612,415,548	623,640,853
Acquisitions	317,924,741	142,339,358	460,264,099
Disposals	0	-385,475,745	-385,475,745
Maturities	-10,512,390	-47,550,729	-58,063,119
Measurement of investments through profit or loss	0	-48,671,982	-48,671,982
Impairment/reversal of impairment	-594,460	0	-594,460
Premiums and discounts	526,146	0	526,146
Interest income	3,290,648	3,853,281	7,143,929
Realised gains/losses in profit or loss	0	-12,641,017	-12,641,017
Exchange rate differences	0	2,904,385	2,904,385
As at 31 December 2022 = 1 January 2023	321,859,990	267,173,099	589,033,089
Acquisitions	4,996,330	191,669,217	196,665,547
Disposals	-12,551,545	-71,848,617	-84,400,162
Maturities	-36,951,090	-50,717,595	-87,668,685
Measurement of investments through profit or loss	0	27,758,208	27,758,208
Impairment/reversal of impairment	309,953	0	309,953
Premiums and discounts	953,197	0	953,197
Interest income	5,326,428	3,571,662	8,898,090
Realised gains/losses in profit or loss	-727,838	1,099,542	371,704
Exchange rate differences	0	-1,878,770	-1,878,770
As at 31 December 2023	283,215,425	366,826,746	650,042,171

Movement in investments from financial contracts of Zavarovalnica Triglav

			in EUR
	AC	FVTPL	TOTAL
As at 1 January 2022	0	245,306,210	245,306,210
Acquisitions	98,905,203	81,064,263	179,969,466
Disposals	0	-158,979,319	-158,979,319
Maturities	-464,870	-11,030,063	-11,494,933
Measurement of investments through profit or loss	0	-14,535,473	-14,535,473
Impairment/reversal of impairment	-249,082	0	-249,082
Premiums and discounts	526,147	0	526,147
Interest income	680,624	1,281,121	1,961,745
Realised gains/losses in profit or loss	0	-12,656,126	-12,656,126
Exchange rate differences	0	952,700	952,700
As at 31 December 2022 = 1 January 2023	99,398,022	131,403,313	230,801,335
Acquisitions	991,330	78,805,001	79,796,331
Disposals	-11,537,681	-41,126,379	-52,664,060
Maturities	-4,228,490	-15,117,881	-19,346,371
Measurement of investments through profit or loss	0	14,115,103	14,115,103
Impairment/reversal of impairment	105,066	0	105,066
Premiums and discounts	953,197	0	953,197
Interest income	1,261,878	1,291,257	2,553,135
Realised gains/losses in profit or loss	-728,037	1,245,601	517,564
Exchange rate differences	0	-990,029	-990,029
As at 31 December 2023	86,215,285	169,625,986	255,841,271

382

3.5.3

Return on investments from financial contracts

Return on investments from financial contracts of the Triglav Group

		in EUR
	2023	2022
Interest	9,851,287	7,670,075
Dividends	1,700,237	1,465,191
Realised gains/losses	371,704	-12,641,017
Unrealised gains/losses	27,758,208	-48,671,982
Impairment/reversal of impairment	309,953	-594,460
Exchange rate differences	-1,878,770	2,904,385
Other investment income/expenses	519,399	587,740
TOTAL	38,632,018	-49,280,068

Return on investments from financial contracts of Zavarovalnica Triglav

		in EUR
	2023	2022
Interest	3,506,332	2,487,891
Dividends	920,242	684,423
Realised gains/losses	517,564	-12,656,126
Unrealised gains/losses	14,115,103	-14,535,473
Impairment/reversal of impairment	105,066	-249,082
Exchange rate differences	-990,029	952,700
Other investment income/expenses	-371,983	233,219
TOTAL	17,802,295	-23,082,449

3.5.4

Impairment of investments from financial contracts

Movement in ECL impairment of investments from financial contracts of the Triglav Group

						in EUR
	31 December 2023			31 December 2022
	Gross	ECL adjustment	Carrying amount	Gross	ECL adjustment	Carrying amount
Debt securities at AC	283,524,818	-309,392	283,215,426	302,008,147	-619,341	301,388,806
Deposits at AC	0	0	0	20,471,189	-4	20,471,185
Total	283,524,818	-309,392	283,215,426	322,479,336	-619,345	321,859,991

All financial investments from financial contracts are classified in Level 1. The movements in

gross carrying amount and ECL adjustments are shown in the tables below.

383

	in EUR
Debt securities at AC	TOTAL
Gross carrying amount as at 1 January 2022	8,249,330
Acquisitions	292,470,041
Disposals, maturities	-2,507,609
Interest	3,796,385
Gross carrying amount as at 31 December 2022 = 1 January 2023	302,008,147
Acquisitions	991,330
Disposals, maturities	-25,705,942
Interest	6,231,084
Other changes	199
Gross carrying amount as at 31 December 2023	283,524,818

	in EUR
Debt securities at AC	TOTAL
ECL adjustment as at 1 January 2022	-24,876
Change in ECL adjustment	-594,465
ECL adjustment as at 31 December 2022 = 1 January 2023	-619,341
Acquisitions	-1,472
Disposals, maturities	6,917
Change in ECL adjustment	304,504
ECL adjustment as at 31 December 2023	-309,392

	in EUR
Deposits at AC	TOTAL
Gross carrying amount as at 1 January 2022	3,000,860
Acquisitions	25,454,700
Disposals, maturities	-8,004,781
Interest	20,410
Gross carrying amount as at 31 December 2022 = 1 January 2023	20,471,189
Acquisitions	4,005,000
Disposals, maturities	-24,524,730
Interest	48,541
Gross carrying amount as at 31 December 2023	0

The effects of ECL impairments of deposits measured at amortised cost are insignificant and are

therefore not disclosed.

Movement in ECL impairment of investments from financial contracts of Zavarovalnica Triglav

						in EUR
	31 December 2023			31 December 2022
	Gross	ECL adjustment	Carrying amount	Gross	ECL adjustment	Carrying amount
Debt securities at AC	86,359,301	-144,016	86,215,285	99,647,104	-249,082	99,398,021
TOTAL	86,359,301	-144,016	86,215,285	99,647,104	-249,082	99,398,021

All financial investments from financial contracts are classified in Level 1. The movements in

gross carrying amount and ECL adjustments are shown in the tables below.

384

	in EUR
Debt securities at AC	TOTAL
Gross carrying amount as at 1 January 2022	0
Acquisitions	98,905,203
Disposals, maturities	-464,870
Interest	1,206,771
Gross carrying amount as at 31 December 2022 = 1 January 2023	99,647,104
Acquisitions	991,330
Disposals, maturities	-16,494,208
Interest	2,215,075
Gross carrying amount as at 31 December 2023	86,359,301

	in EUR
Debt securities at AC	TOTAL
ECL adjustment as at 1 January 2022	0
Change in ECL adjustment	-249,082
ECL adjustment as at 31 December 2022 = 1 January 2023	-249,082
Acquisitions	-1,472
Disposals, maturities	6,917
Change in ECL adjustment	99,621
ECL adjustment as at 31 December 2023	-144,016

3.5.5

Financial contract liabilities

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Liabilities to PDPZ Zajamčeni fund members	520,589,186	503,435,563	193,561,131	188,171,802
Liabilities to PDPZ Zmerni, Mešani fund members	74,253,819	57,046,617	31,243,232	23,385,516
Liabilities to PDPZ Drzni, Delniški fund members	77,077,607	51,223,462	34,174,144	22,897,307
Other financial contract liabilities	2,194,534	2,113,004	645,535	513,889
TOTAL	674,115,146	613,818,646	259,624,041	234,968,514

The guaranteed amount of the Triglav Group's liabilities to PDPZ Zajamčeni fund members as at

31 December 2023 was EUR 510,158,978 (31 December 2022: EUR 503,333,819), and the

guaranteed amount of Zavarovalnica Triglav's liabilities to PDPZ Zajamčeni fund members as at

31 December 2023 was EUR 185,011,650 (31 December 2022: EUR 183,701,150).

385

Financial contract liabilities of the Triglav Group

				in EUR
	PDPZ Zajamčeni	PDPZ Zmerni, Mešani	PDPZ Drzni, Delniški	TOTAL
As at 1 January 2022	545,602,448	50,954,764	44,907,848	641,465,060
Fund inflows	34,718,546	8,837,699	13,365,881	56,922,126
Fund outflows	-29,343,928	-623,822	-223,846	-30,191,596
Investment return of funds	-38,913,645	-5,783,973	-4,566,184	-49,263,802
Expenses for fund fees	-5,676,837	-640,850	-616,660	-6,934,347
Other fund expenses and costs	-203,938	-43,212	-44,649	-291,799
Transfers between funds	-2,747,083	4,346,011	-1,598,928	0
As at 31 December 2022 = 1 January 2023	503,435,563	57,046,617	51,223,462	611,705,642
Fund inflows	34,177,292	9,235,540	16,394,378	59,807,210
Fund outflows	-29,790,950	-618,053	-331,450	-30,740,453
Investment return of funds	19,083,765	8,933,738	10,618,870	38,636,373
Expenses for fund fees	-5,670,128	-758,553	-822,686	-7,251,367
Other fund expenses and costs	-144,836	-40,207	-51,750	-236,793
Transfers between funds	-501,520	454,737	46,783	0
As at 31 December 2023	520,589,186	74,253,819	77,077,607	671,920,612

Financial contract liabilities of Zavarovalnica Triglav

				in EUR
	PDPZ Zajamčeni	PDPZ Zmerni	PDPZ Drzni	TOTAL
As at 1 January 2022	208,763,416	20,031,760	20,421,665	249,216,841
Fund inflows	12,434,151	3,671,848	5,415,010	21,521,009
Fund outflows	-10,145,071	-197,020	-108,990	-10,451,081
Investment return of funds	-17,952,606	-2,793,439	-2,320,136	-23,066,181
Expenses for fund fees	-2,187,226	-269,261	-278,695	-2,735,182
Other fund expenses and costs	0	-16,464	-14,319	-30,783
Transfers between funds	-2,740,863	2,958,093	-217,230	0
As at 31 December 2022 = 1 January 2023	188,171,802	23,385,516	22,897,307	234,454,625
Fund inflows	11,969,656	3,460,000	6,123,518	21,553,173
Fund outflows	-11,628,350	-188,425	-127,595	-11,944,370
Investment return of funds	7,756,092	4,473,268	5,573,304	17,802,664
Expenses for fund fees	-2,162,042	-321,998	-370,686	-2,854,726
Other fund expenses and costs	0	-16,348	-16,511	-32,859
Transfers between funds	-546,026	451,219	94,807	0
As at 31 December 2023	193,561,131	31,243,232	34,174,144	258,978,507

386

Maturity of liabilities to pension fund members of the Triglav Group

The undiscounted expected future cash flows from financial contract liabilities are equal to the

carrying amount of the Group's liabilities. Their expected maturity at 31 December 2023 and 31

December 2022 is shown below.

31 December 2023

					in EUR
	< 1 year	1-5 years	5-10 years	> 10 years	TOTAL
Liabilities to PDPZ Zajamčeni fund members	9,044,911	44,983,103	75,927,029	390,634,143	520,589,186
Liabilities to PDPZ Zmerni, Mešani fund members	899,250	5,784,258	11,131,209	56,439,102	74,253,819
Liabilities to PDPZ Drzni, Delniški fund members	2,350,752	12,880,950	20,744,707	41,101,198	77,077,607
TOTAL	12,294,913	63,648,311	107,802,945	488,174,443	671,920,612

31 December 2022

					in EUR
	< 1 year	1-5 years	5-10 years	> 10 years	TOTAL
Liabilities to PDPZ Zajamčeni fund members	7,607,220	38,927,965	68,024,966	388,875,412	503,435,563
Liabilities to PDPZ Zmerni, Mešani fund members	520,338	3,527,258	7,720,385	45,278,636	57,046,617
Liabilities to PDPZ Drzni, Delniški fund members	1,311,961	7,834,169	13,220,342	28,856,990	51,223,462
TOTAL	9,439,519	50,289,392	88,965,693	463,011,038	611,705,642

Maturity of liabilities to pension fund members of Zavarovalnica Triglav

The undiscounted expected future cash flows from financial contract liabilities are equal to the

carrying amount of the Company's liabilities. Their expected maturity at 31 December 2023 and

31 December 2022 is shown below.

31 December 2023

					in EUR
	< 1 year	1-5 year	5-10 year	> 10 year	TOTAL
Liabilities to PDPZ Zajamčeni fund members	3,834,771	18,606,355	29,568,623	141,551,382	193,561,131
Liabilities to PDPZ Zmerni fund members	420,828	2,659,441	4,842,199	23,320,763	31,243,232
Liabilities to PDPZ Drzni fund members	1,095,068	6,030,153	9,278,992	17,769,931	34,174,144
TOTAL	5,350,667	27,295,949	43,689,814	182,642,076	258,978,506

31 December 2022

					in EUR
	< 1 year	1-5 year	5-10 year	> 10 year	TOTAL
Liabilities to PDPZ Zajamčeni fund members	2,961,201	14,834,680	24,863,751	145,512,170	188,171,802
Liabilities to PDPZ Zmerni fund members	226,322	1,474,912	2,987,874	18,696,408	23,385,516
Liabilities to PDPZ Drzni fund members	640,013	3,785,376	5,706,943	12,764,975	22,897,307
TOTAL	3,827,536	20,094,968	33,558,568	176,973,553	234,454,625

387

3.6

Operating expenses

Operating expenses of Triglav Group

						in EUR
2023	Attributable acquisition costs	Attributable claim handling expenses	Attributable administrative costs	Non- attributable expenses of insurance companies	Expenses of non-insurance companies	TOTAL
OPERATING EXPENSES	214,668,318	29,992,668	83,801,833	58,998,876	46,643,578	434,105,273
Acquisition costs	92,612,498	864	0	193,092	0	92,806,454
Depreciation/amortisation costs	2,303,426	381,862	1,357,867	19,332,257	2,916,254	26,291,666
Depreciation/amortisation costs of leased assets	1,736,408	268,129	775,675	2,928,709	990,091	6,699,012
Depreciation/amortisation costs of other operating assets	567,018	113,733	582,192	16,403,548	1,926,163	19,592,654
Labour costs	90,886,243	23,014,544	54,812,664	11,138,406	18,095,743	197,947,600
Wages and salaries	65,040,590	15,777,470	35,874,972	7,351,519	12,735,298	136,779,849
Social and pension insurance costs	13,312,820	3,473,736	7,967,360	1,603,891	3,421,962	29,779,769
Other labour costs	12,532,833	3,763,338	10,970,332	2,182,996	1,938,483	31,387,982
Costs of services	28,866,151	6,595,398	27,631,302	28,335,121	25,696,867	117,124,839
Costs of entertainment, advertising and trade shows	8,133,825	19,067	172,839	13,704,398	1,580,349	23,610,478
Maintenance costs	4,463,095	1,204,444	9,006,364	554,278	1,494,336	16,722,517
Costs of materials and energy	4,381,093	1,000,413	1,656,737	435,945	2,572,997	10,047,185
Costs of payment transactions and banking services	675,772	10,958	1,585,406	65,732	212,409	2,550,277
Insurance premium costs	178,942	16,150	240,475	1,372,629	305,541	2,113,737
Costs of intellectual services	289,576	606,173	1,017,448	5,326,307	2,164,090	9,403,594
Training costs	363,077	136,539	545,787	298,342	215,575	1,559,320
Expenses for short-term leases, low-value leases and other leases	1,656,454	717,901	4,476,567	470,315	955,534	8,276,771
Costs of transport and communications services	2,784,319	536,092	2,566,509	141,165	431,209	6,459,294
Reimbursement of labour-related costs	3,049,244	150,510	734,771	533,683	1,128,333	5,596,541
Costs of services provided by natural persons other than sole proprietors	316,582	554,606	491,375	189,478	518,767	2,070,808
Other costs of services	2,574,172	1,642,545	5,137,024	5,242,849	14,117,727	28,714,317
Cost of goods sold	0	0	0	0	-65,286	-65,286
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES	213,309	3,844,303	19,534,686	203,396	0	23,795,694
CHANGE IN DEFERRED ACQUISITION COSTS	-13,616,542	0	0	0	0	-13,616,542
TOTAL	201,265,085	33,836,971	103,336,519	59,202,272	46,643,578	444,284,425
Elimination of intercompany transactions	-1,080,487	0	-1,511,832	-11,137,602	-1,539,779	-15,269,700
TOTAL	200,184,598	33,836,971	101,824,687	48,064,670	45,103,799	429,014,725

388

						in EUR
2022	Attributable acquisition costs	Attributable claim handling expenses	Attributable administrative costs	Non- attributable expenses of insurance companies	Expenses of non-insurance companies	TOTAL
OPERATING EXPENSES	191,558,019	27,599,961	72,302,752	57,323,799	41,654,690	390,439,221
Acquisition costs	80,806,697	18	27,409	191,958	0	81,026,082
Depreciation/amortisation costs	2,302,938	369,329	1,185,886	19,259,537	3,048,989	26,166,679
Depreciation/amortisation costs of leased assets	1,731,253	237,393	724,504	2,928,188	939,009	6,560,347
Depreciation/amortisation costs of other operating assets	571,685	131,936	461,382	16,331,349	2,109,980	19,606,332
Labour costs	80,182,993	21,154,385	47,956,724	10,341,284	15,874,205	175,509,591
Wages and salaries	57,314,811	14,515,885	32,213,933	6,730,945	11,222,000	121,997,574
Social and pension insurance costs	11,608,508	3,223,360	7,352,045	1,330,317	2,964,370	26,478,600
Other labour costs	11,259,674	3,415,140	8,390,746	2,280,022	1,687,835	27,033,417
Costs of services	28,265,391	6,076,229	23,132,733	27,531,020	22,738,219	107,743,592
Costs of entertainment, advertising and trade shows	8,007,423	18,296	136,088	12,867,286	1,886,001	22,915,094
Maintenance costs	3,802,074	1,058,936	8,018,574	536,111	1,236,031	14,651,726
Costs of materials and energy	4,624,221	1,217,539	1,975,868	693,327	2,253,006	10,763,961
Costs of payment transactions and banking services	584,131	1,391	1,513,638	96,179	284,935	2,480,274
Insurance premium costs	134,873	19,732	229,815	716,962	266,152	1,367,534
Costs of intellectual services	319,245	507,271	655,512	6,078,489	1,022,113	8,582,630
Training costs	418,429	135,351	536,331	280,275	139,503	1,509,889
Expenses for short-term leases, low-value leases and other leases	1,913,623	617,415	2,308,859	332,931	802,403	5,975,231
Costs of transport and communications services	2,743,534	500,208	2,184,056	138,316	405,998	5,972,112
Reimbursement of labour-related costs	2,814,939	143,563	632,075	496,579	1,161,318	5,248,474
Costs of services provided by natural persons other than sole proprietors	419,418	446,661	411,230	167,391	364,540	1,809,240
Other costs of services	2,483,481	1,409,866	4,530,687	5,127,174	12,916,219	26,467,427
Cost of goods sold	0	0	0	0	-6,723	-6,723
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES	0	2,193,833	15,232,730	1,699,977	0	19,126,540
CHANGE IN DEFERRED ACQUISITION COSTS	-11,985,247	0	0	0	0	-11,985,247
TOTAL	179,572,772	29,793,794	87,535,482	59,023,776	41,654,690	397,580,514
Elimination of intercompany transactions	-1,120,999	0	-1,436,608	-9,873,812	-1,169,241	-13,600,659
TOTAL	178,451,773	29,793,794	86,098,874	49,149,964	40,485,449	383,979,855

Among other service costs, the Group mainly discloses expenses for fund fees, which amounted to EUR 9,984,023 in 2023 (2022: EUR 9,626,729),

costs of computer services, which amounted to EUR 3,211,758 in 2023 (2022: EUR 2,710,022), and costs of property protection services, which

amounted to EUR 1,675,798 in 2023 (2022: EUR 1,532,837).

389

Operating expenses of Zavarovalnica Triglav

					in EUR
2023	Attributable acquisition costs	Attributable claim handling expenses	Attributable administrative costs	Non-attributable expenses	TOTAL
OPERATING EXPENSES	141,263,233	21,678,451	49,762,875	39,242,595	251,947,155
Acquisition costs	55,547,516	0	0	24,716	55,572,232
Depreciation/amortisation costs	690,797	134,450	301,196	15,038,079	16,164,522
Depreciation/amortisation costs of leased assets	690,797	134,450	301,196	94,428	1,220,871
Depreciation/amortisation costs of other operating assets	0	0	0	14,943,651	14,943,651
Labour costs	69,150,906	17,529,520	34,354,245	7,583,373	128,618,044
Wages and salaries	49,828,505	12,079,662	22,311,787	5,242,419	89,462,373
Social and pension insurance costs	8,422,285	2,051,485	3,748,859	917,505	15,140,134
Other labour costs	10,900,116	3,398,373	8,293,599	1,423,449	24,015,536
Costs of services	15,874,014	4,014,481	15,107,435	16,596,427	51,592,357
Costs of entertainment, advertising and trade shows	2,718,924	231	15,143	7,343,335	10,077,634
Maintenance costs	3,192,233	982,663	4,180,405	536,341	8,891,642
Costs of materials and energy	2,148,122	721,766	909,006	335,252	4,114,147
Costs of payment transactions and banking services	471,252	7,775	936,673	19,901	1,435,601
Insurance premium costs	0	0	0	1,005,722	1,005,722
Costs of intellectual services	94,565	43,103	330,587	3,302,260	3,770,515
Training costs	310,496	126,841	393,200	185,745	1,016,282
Expenses for short-term leases, low-value leases and other leases	1,148,723	642,121	4,222,146	453,438	6,466,428
Costs of transport and communications services	1,863,142	419,488	558,056	132,496	2,973,181
Reimbursement of labour-related costs	2,584,457	91,388	390,285	284,920	3,351,050
Costs of services provided by natural persons other than sole proprietors	71,709	384,590	219,122	18,624	694,045
Other costs of services	1,270,391	594,516	2,952,812	2,978,392	7,796,111
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES	0	1,591,019	18,832,824	6,164	20,430,008
CHANGE IN DEFERRED ACQUISITION COSTS	-10,020,473	0	0	0	-10,020,473
TOTAL	131,242,760	23,269,470	68,595,699	39,248,760	262,356,690

390

					in EUR
2022	Attributable acquisition costs	Attributable claim handling expenses	Attributable administrative costs	Non-attributable expenses	TOTAL
OPERATING EXPENSES	122,785,821	19,930,061	39,943,674	38,715,422	221,374,979
Acquisition costs	45,233,097	0	27,204	34,409	45,294,710
Depreciation/amortisation costs	722,081	123,990	232,637	14,872,023	15,950,731
Depreciation/amortisation costs of leased assets	722,081	123,990	232,637	91,905	1,170,612
Depreciation/amortisation costs of other operating assets	0	0	0	14,780,118	14,780,118
Labour costs	60,988,095	16,036,119	28,658,677	7,265,733	112,948,623
Wages and salaries	43,778,391	11,051,467	19,234,017	5,015,883	79,079,757
Social and pension insurance costs	7,414,163	1,885,760	3,218,030	880,402	13,398,354
Other labour costs	9,795,542	3,098,891	6,206,631	1,369,448	20,470,512
Costs of services	15,842,549	3,769,953	11,025,156	16,543,257	47,180,915
Costs of entertainment, advertising and trade shows	2,895,924	49	1,088	6,791,642	9,688,702
Maintenance costs	2,663,955	826,715	3,165,553	515,731	7,171,955
Costs of materials and energy	2,495,082	964,166	1,192,927	570,854	5,223,029
Costs of payment transactions and banking services	412,489	350	884,254	33,886	1,330,980
Insurance premium costs	0	0	0	452,582	452,582
Costs of intellectual services	143,015	24,603	69,319	4,205,733	4,442,670
Training costs	360,709	118,219	405,379	182,025	1,066,331
Expenses for short-term leases, low-value leases and other leases	1,393,515	543,820	2,059,098	323,598	4,320,031
Costs of transport and communications services	1,797,872	390,911	464,836	129,455	2,783,075
Reimbursement of labour-related costs	2,414,333	87,802	290,377	267,958	3,060,470
Costs of services provided by natural persons other than sole proprietors	51,656	284,475	160,482	17,186	513,799
Other costs of services	1,213,999	528,843	2,331,843	3,052,606	7,127,291
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES	0	1,039,966	14,304,820	1,189,329	16,534,115
CHANGE IN DEFERRED ACQUISITION COSTS	-4,533,800	0	0	0	-4,533,800
TOTAL	118,252,021	20,970,027	54,248,494	39,904,751	233,375,294

391

In addition to costs of salaries, the Company set aside provisions for employee bonuses. In

addition to employees' salaries, contributions charged to the employer are taken into account

when creating provisions. Total provisions created for 2023 amounted to EUR 5,000,000 (2022:

EUR 18,922,432).

3.7

Notes to other significant items in the financial statements

3.7.1

Property, plant and equipment

Movement in property, plant and equipment of the Triglav Group

					in EUR
	Land	Buildings	Equipment	PPE in acquisition	TOTAL
COST
As at 1 January 2022	11,480,626	128,546,856	67,993,004	542,651	208,563,137
Transfer in use	0	546,941	1,110,761	-1,657,702	0
Acquisitions	0	535,297	8,148,282	1,437,590	10,121,169
Disposals	-33,621	-796,202	0	0	-829,823
Write-offs	0	0	-7,313,981	0	-7,313,981
Other changes	-11,096	-3,083,319	51,800	304,578	-2,738,037
As at 31 December 2022 = 1 January 2023	11,435,909	125,749,573	69,989,866	627,117	207,802,465
Transfer to use	0	503,021	1,521,192	-2,024,213	0
Acquisitions	10,506	272,660	4,142,852	3,049,180	7,475,198
Disposals	0	-1,311,669	-1,108,292	0	-2,419,961
Write-offs	0	-562	-3,346,490	0	-3,347,052
Other changes	94,383	-1,057,416	-55,158	-299,208	-1,317,399
As at 31 December 2023	11,540,798	124,155,607	71,143,970	1,352,876	208,193,251
ACCUMULATED DEPRECIATION
As at 1 January 2022	0	-44,779,835	-53,652,258	0	-98,432,093
Depreciation	0	-2,538,175	-5,940,073	0	-8,478,248
Disposals	0	277,580	0	0	277,580
Write-offs	0	0	7,042,755	0	7,042,755
Other changes	0	1,423,511	229,866	0	1,653,377
As at 31 December 2022 = 1 January 2023	0	-45,616,919	-52,319,710	0	-97,936,629
Depreciation	0	-2,449,618	-5,911,868	0	-8,361,486
Disposals	0	265,803	851,584	0	1,117,387
Write-offs	0	0	3,266,280	0	3,266,280
Other changes	0	424,040	125,966	0	550,006
As at 31 December 2023	0	-47,376,694	-53,987,748	0	-101,364,442
CARRYING AMOUNT
As at 1 January 2022	11,480,626	83,767,021	14,340,746	542,651	110,131,044
As at 31 December 2022 = 1 January 2023	11,435,909	80,132,654	17,670,156	627,117	109,865,836
As at 31 December 2023	11,540,798	76,778,913	17,156,222	1,352,876	106,828,809

The Group has no property, plant and equipment pledged as collateral for liabilities. It 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 2023 compared to the previous year.

Cost of fully depreciated assets still in use represents 18.12% of total cost of all assets used (31

December 2022: 16.62%).

392

In 2023, the Group assessed the existence of possible signs of impairment of land, buildings and

equipment. Signs of impairment were identified in several real properties, which were

subsequently impaired. The impairment of EUR 215,524 is shown under "Other changes" in

movement in property, plant and equipment.

Movement in property, plant and equipment of Zavarovalnica Triglav

					in EUR
	Land	Buildings	Equipment	PPE in acquisition	TOTAL
COST
As at 1 January 2022	5,875,544	83,254,488	42,319,282	231,002	131,680,316
Transfer to use	0	381,851	177,896	-559,747	0
Acquisitions	0	51,230	6,260,448	544,688	6,856,366
Disposals	0	-392,118	0	0	-392,118
Write-offs	0	0	-5,639,803	0	-5,639,803
Other changes	0	810,984	214,900	0	1,025,884
As at 31 December 2022 = 1 January 2023	5,875,544	84,106,435	43,332,723	215,943	133,530,645
Transfer to use	0	503,021	838,567	-1,341,588	0
Acquisitions	10,506	194,514	2,698,009	2,121,992	5,025,021
Disposals	0	-777,960	0	0	-777,960
Write-offs	0	0	-2,192,611	0	-2,192,611
Other changes	0	-53,719	0	0	-53,719
As at 31 December 2023	5,886,050	83,972,291	44,676,688	996,347	135,531,376
ACCUMULATED DEPRECIATION
As at 1 January 2022	0	-30,201,335	-34,719,681	0	-64,921,016
Depreciation	0	-1,417,798	-3,472,525	0	-4,890,323
Disposals	0	116,625	0	0	116,625
Write-offs	0	0	5,600,473	0	5,600,473
Other changes	0	-320,507	0	0	-320,507
As at 31 December 2022 = 1 January 2023	0	-31,823,015	-32,591,733	0	-64,414,748
Depreciation	0	-1,434,355	-3,510,237	0	-4,944,592
Disposals	0	213,411	0	0	213,411
Write-offs	0	0	2,162,703	0	2,162,703
Other changes	0	61,328	0	0	61,328
As at 31 December 2023	0	-32,982,631	-33,939,267	0	-66,921,898
CARRYING AMOUNT
As at 1 January 2022	5,875,544	53,053,153	7,599,601	231,002	66,759,300
As at 31 December 2022 = 1 January 2023	5,875,544	52,283,420	10,740,990	215,943	69,115,897
As at 31 December 2023	5,886,050	50,989,660	10,737,421	996,347	68,609,478

The Company has no property, plant and equipment pledged as collateral for liabilities. It 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 2023 compared to the previous year.

Cost of fully depreciated assets still in use represents 19.98% of total cost of all assets used (31

December 2022: 19.95%).

In 2023, the Company assessed the existence of possible signs of impairment of land, buildings

and equipment. Signs of impairment were identified in several real properties, which were

subsequently impaired. The impairment of EUR 215,524 is shown under "Other changes" in

movement in property, plant and equipment.

393

Determining the fair value of the Group's and the Company's real property

The fair value of real property was determined based on valuations performed as at 30

September 2023 by an external certified real estate valuer in accordance with the guidelines

described in Section 2.5.11. When preparing the financial statements as at 31 December 2023,

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 9.50% for commercial buildings.

The rate was determined using the market analysis method and further verified using the build-

up method. 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 0.68% risk-free rate of return in real terms, taking into account the yield on a 10-

year Slovenian government bond of 3.70% and the annual price growth rate of 3%;

▪

the real estate risk premium of 5.0–7.0%;

▪

the capital retention premium of 1.36% (according to Hoskold) (in the case of an

estimated age of office property of 60 years).

When using the income capitalisation method, the fair value of real property abroad was

estimated using a discount rate ranging between 7.5% and 15.0%, and was also calculated using

the market analysis method. The rate was verified using a build-up method (a three-part model),

in which the following assumptions were used:

▪

the real risk-free rate of return of 0.58–6.02%, taking into account the yield on a 10-year

German government bond (2.84%), the country risk premium (2.89–9.86%) and the

current and projected inflation rate for the country in which real property is located;

▪

the real estate risk premium of 6.3%;

▪

the capital retention premium of 1.67% (in the case of an estimated age of office

property of 60 years).

The fair values of the Group's and the Company's real property exceed their carrying amounts.

394

3.7.2

Investment property

Movement in investment property of the Triglav Group

				in EUR
	Land	Buildings	Property in acquisition	TOTAL
COST
As at 1 January 2022	14,838,567	62,858,021	13,888,435	91,585,023
Transfer to use	0	3,347,280	-3,347,280	0
Acquisitions	0	1,016,944	1,569,684	2,586,628
Disposals	-6,900,991	-1,179,333	-110,568	-8,190,892
Other changes	1,358	-42,785	0	-41,427
As at 31 December 2022 = 1 January 2023	7,938,934	66,000,127	12,000,271	85,939,332
Transfer to use	0	1,687,420	-1,687,420	0
Acquisitions	0	183,744	1,731,816	1,915,560
Disposals	-102,108	-1,146,824	-37,049	-1,285,981
Other changes	-185	-247,132	0	-247,317
As at 31 December 2023	7,836,641	66,477,335	12,007,618	86,321,594
ACCUMULATED DEPRECIATION
As at 1 January 2022	0	-16,525,432	0	-16,525,432
Depreciation	0	-1,430,563	0	-1,430,563
Disposals	0	378,702	0	378,702
Other changes	0	-36,552	0	-36,552
As at 31 December 2022 = 1 January 2023	0	-17,613,845	0	-17,613,845
Depreciation	0	-1,434,129	0	-1,434,129
Disposals	0	667,231	0	667,231
Other changes	0	12,922	0	12,922
As at 31 December 2023	0	-18,367,821	0	-18,367,821
CARRYING AMOUNT
As at 1 January 2022	14,838,567	46,332,589	13,888,435	75,059,591
As at 31 December 2022 = 1 January 2023	7,938,934	48,386,282	12,000,271	68,325,487
As at 31 December 2023	7,836,641	48,109,514	12,007,618	67,953,773

The Group has no investment property pledged as collateral for liabilities. It also has no financial

liabilities related to the purchase of investment property. Investment property owned by the

Group 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 2023 compared to the previous year.

In 2023, the Group assessed the existence of possible signs of impairment of investment

property. No signs of impairment were identified.

395

Movement in investment property of Zavarovalnica Triglav

				in EUR
	Land	Buildings	Property in acquisition	TOTAL
COST
As at 1 January 2022	3,529,464	40,688,135	10,810,918	55,028,517
Transfer to use	0	0	0	0
Acquisitions	0	33,675	1,118,817	1,152,492
Disposals	-16,237	-202,020	0	-218,257
Other changes	0	-810,985	0	-810,985
As at 31 December 2022 = 1 January 2023	3,513,227	39,708,805	11,929,735	55,151,767
Transfer to use	0	1,405,389	-1,405,389	0
Acquisitions	0	183,744	1,439,138	1,622,882
Disposals	-102,107	-986,853	0	-1,088,960
Other changes	-185	-227,671	0	-227,856
As at 31 December 2023	3,410,935	40,083,414	11,963,484	55,457,833
ACCUMULATED DEPRECIATION
As at 1 January 2022	0	-11,188,462	0	-11,188,462
Depreciation	0	-966,800	0	-966,800
Disposals	0	60,161	0	60,161
Other changes	0	320,507	0	320,507
As at 31 December 2022 = 1 January 2023	0	-11,774,594	0	-11,774,594
Depreciation	0	-972,822	0	-972,822
Disposals	0	713,890	0	713,890
Other changes	0	2,874	0	2,874
As at 31 December 2023	0	-12,030,652	0	-12,030,652
CARRYING AMOUNT
As at 1 January 2022	3,529,464	29,499,673	10,810,918	43,840,055
As at 31 December 2022 = 1 January 2023	3,513,227	27,934,211	11,929,735	43,377,173
As at 31 December 2023	3,410,935	28,052,762	11,963,484	43,427,181

The Company has no investment property pledged as collateral for liabilities. It 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% and did not

change in 2023 compared to the previous year.

In 2023, the Company assessed the existence of possible signs of impairment of investment

property. No signs of impairment were identified.

396

Determining the fair value of the Group's and the Company's investment property