1
The Triglav Group and Zavarovalnica Triglav d.d.
Audited Annual Report for the Year Ended 31 December 2024
MANAGEMENT BOARD:
President:
Andrej Slapar
Members:
Uroš Ivanc
Tadej Čoroli
Marica Makoter
Blaž Jakič
Ljubljana, 11 March 2025
2
Business Report
1.
Address by the President of the Management Board
5
2.
Triglav Group and Zavarovalnica Triglav in 2024
7
3.
Report of the Supervisory Board
17
4.
Triglav Group strategy and plans
27
5.
Corporate Governance Statement
42
6.
The share and shareholders of Zavarovalnica Triglav
61
7.
Macroeconomic environment and market trends
70
8.
Operations of the Triglav Group and Zavarovalnica Triglav
80
9.
Risk management
105
10. Sustainability report
120
11.
Digital Operational Resilience Report
208
Accounting Report
Statement of management
s responsibilities
213
1.
Financial statements
223
2.
Notes to the financial statements
229
3.
Notes to the specific significant items in the financial statements
328
4.
Other information
427
Appendix
1.
Triglav Group as at 31 December 2024
438
2.
Business network of the Triglav Group
443
3.
Glossary of terms
445
4.
Alternative performance measures
450
5.
The list of ESRS disclosure requirements included in the sustainability statement
452
6.
The list of datapoints in cross-cutting and topical standards that derive from other EU
legislation
455
7.
GRI, SASB in SDG Content Index
463
3
4
Credit rating
of the Triglav Group
Positive medium-term outlook
(S&P Global)
Stable medium-term outlook
(AM Best)
"A"
Total revenue in EUR million
Total business volume in EUR million
Combined ratio Non-Life and Health of the Triglav Group
Return on equity of the Triglav Group
Earnings before tax in EUR million
101.9%
around 95%
1,452.2
1,393.2
1,005.8
940.3
2023
2024
Triglav Group
Zavarovalnica Triglav
1,738.0
around 1,600
1,717.6
1,251.6
1,134.1
2023
2024 plan
2024
Triglav Group
Zavarovalnica Triglav
21.1
130 - 150
159.0
15.8
117.6
2023
2024 plan
2024
Triglav Group
Zavarovalnica Triglav
1.8%
14.0%
2023
2024
76.3%
65.5%
25.6%
28.1%
2023
2024 plan
2024
Claims ratio
Expense ratio
93.6%
5
1.
Address by the President of the Management Board
Dear Shareholders and Readers,
This has been a year of strong performance. The Triglav Group consistently pursued its strategic
ambitions, achieved its business objectives, and benefited from favourable financial market
conditions and relatively favourable claims development, further reinforcing its strong results.
Excellent performance was recorded across all business segments, significantly exceeding
expectations. Importantly, the Group remains
financially robust, as reaffirmed by its high "A" credit
rating, with S&P Global upgrading its outlook from stable to positive.
Earnings before tax amounted to EUR 159 million, while net earnings reached EUR 131 million.
Strong results in insurance, reinsurance and asset management, alongside one-off events –
particularly in health insurance – contributed to this achievement. Despite ongoing uncertainty
surrounding inflationary expectations and a highly competitive market, the Group further
strengthened its dominant position in the insurance market both in Slovenia and the Adria
region.
The Group remained focused on maintaining the resilience of its business model, enabling
adaptability to environmental challenges. It continued to pursue prudent underwriting while
carefully maintaining targeted asset-liability matching. The Group remains well-capitalised,
further reinforced by profitable operations and the successful issuance of a new subordinated
bond. The Group's net return on equity stood at favourable 14%.
Insurance and asset management
The Group's total business volume reached EUR 1.72 billion, exceeding the target of
approximately EUR 1.60 billion. Consolidated gross written premium amounted to EUR 1.62
billion, reflecting a 2% year-on-year decline due to the termination of supplemental health
insurance in Slovenia. Excluding this impact, premium growth would have been 10%. Client
insurance coverage increased, supported by various underwriting risk management measures.
Business volume also benefited from past premium rate increases and higher sales of insurance
under the principle of free movement of services (FOS).
In line with the Group's target geographical diversification, the share of premium written
outside Slovenia increased. The Slovenian market accounted for 56% of total written premium,
with a 6% increase, including the impact of the Health segment. In other Adria region markets,
premium growth reached 9%, while in international markets, where the Group operates
primarily under the FOS principle and conducts inward reinsurance business, growth stood at
21%.
The Group's combined ratio of 93.6% outperformed expectations, driven by an improved claims
ratio. Claims development in 2024 remained relatively favourable, even in the context of mass
CAT events.
The Group achieved strong and profitable performance across all insurance segments. In the
Health segment, the business model in Slovenia was restructured, including the merger of the
health insurance subsidiary into the parent company. This restructuring aimed to support
continued premium growth, ensure adequate claims management and rationalise costs. The
Group's key strategic guidelines and ambitions for the Health segment remain unchanged,
reaffirming its position as one of the core development segments.
Favourable financial market conditions contributed to strong performance in the Asset
Management segment. Net assets under management for clients in mutual funds and through
discretionary mandate services grew by 33% to EUR 2.3 billion, driven by rising equity market
prices and strong net inflows.
6
In line with investment policies, the conservative structure and quality of the Group's investment
portfolio – which grew by 15% to EUR 3.9 billion – remained largely unchanged. Bonds in
developed markets, most of which have a high credit rating, constitute the majority of the total
investment portfolio.
Implementation of the dividend policy by paying out dividends
Our aim is to ensure that the ZVTG share remains an attractive, secure and stable investment
option for investors. In 2024, its total return was 21% and its dividend yield was 4.0%. A dividend
was paid to shareholders, significantly exceeding the Group's 2023 net earnings. The objectives
of the dividend policy were consistently pursued and maintained, considering the unique
operating environment in 2023 and the improved outlook for 2024. These objectives have been
achieved.
Strategic ambitions for 2030
Strategic objectives for 2025 were met, and in some cases, exceeded. The Group's operations
remain profitable, safe and sustainable. Return on equity surpassed the 10% target in 2024.
Business volume, despite a shortfall in the Health segment, is above target, with the share of
premium written outside Slovenia continuing to grow steadily. Client experience in
underwriting and after-sales activities was enhanced through a client-focused approach. At
Group level, we expanded the range of products and services, digitalised processes, efficiently
managed sales channels and strengthened strategic partnerships. Client and employee
satisfaction remain key performance indicators, with results reflecting a high level of
achievement even in recent challenging years.
Looking ahead to 2030, the Group has set an ambitious strategy that considers environmental
challenges, changes and opportunities. As part of its mission of
Building a Safer Future
, the
Group will continue to enhance its profile as an international insurance and financial group,
aligning with its new vision. Its ambition is to double earnings by 2030 and drive growth in
markets outside Slovenia. With a client-focused approach, the Group will continue its
digitalisation and strengthen existing strategic approaches to address evolving client and
market needs.
The goal is to bring together engaged, collaborative and entrepreneurial
employees, united by shared values.
Sustainable development at the core of our activities
The Group continues to deliver on its sustainability ambitions and support the transition to a
climate-neutral and climate-resilient economy. Some of this year's achievements include:
Increasing the share of ESG bonds in our investment portfolio by two percentage points,
reaching 13%. Transforming all mutual funds in Slovenia into funds promoting environmental
and social characteristics, in line with the SFDR. Expanding our range of services and products
that promote social and environmental benefits. Reducing the Group's Scope 1 and 2 carbon
footprint by 12% and increasing the share of electricity from renewable sources by 4 percentage
points, reaching 66%. Maintaining high corporate governance standards and fostering a culture
of diversity, equality and inclusion. Remaining closely connected to our social environment,
participating in a wide range of socially and environmentally responsible projects. Additionally,
we upgraded our sustainability reporting, which has followed the international GRI guidelines
since 2009, further aligning it with additional standards and targets, such as SASB and SDGs.
This year, we took a significant step forward by aligning our sustainability disclosures with the
CSRD and ESRS.
On behalf of the Management Board and all the Triglav Group employees, I sincerely thank you
for your trust in us.
Andrej Slapar
President of the Management Board of Zavarovalnica Triglav
7
2.
Triglav Group and Zavarovalnica Triglav in 2024
-
The Triglav Group's performance was strong and profitable across all segments.
-
Taking into account the effects in the Health segment, the Group increased its business
volume and maintained its financial strength and high "A" rating, with S&P Global
upgrading its outlook from stable to positive.
-
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
2024
2023
Index
Total business volume
1,717.6
1,738.0
99
Gross written premium
1,622.3
1,663.7
98
Other income
95.4
74.3
128
Total revenue
1,393.2
1,425.2
98
Insurance operating result
97.5
-7.1
Insurance revenue
1,298.0
1,351.2
96
State compensation pursuant to the Decree on supplemental health
insurance premium
11.0
0.0
Claims incurred
678.7
1,021.2
66
Acquisition and administrative costs including non att. costs
370.9
358.0
104
Net reinsurance service result
-140.9
31.6
Net other insurance revenue and expenses
-20.9
-10.6
197
Net investment result
49.0
22.2
220
Investment result
159.7
83.8
191
Financial result from insurance contracts
-118.5
-69.7
170
Change in provisions for not achieving the guaranteed yield
0.9
8.1
11
Gains/losses and impairments of investments in associates
6.9
0.0
Result from non-insurance operations
12.5
5.9
213
Earnings before tax
159.0
21.1
755
Net earnings
131.4
16.3
808
Other comprehensive income
6.3
34.7
18
Combined ratio Non-Life and Health
93.6%
101.9%
-8.3 p.p.
Claims ratio Non-Life and Health
65.5%
76.3%
-10.8 p.p.
Expense ratio Non-Life and Health
28.1%
25.6%
2.5 p.p.
New business margin Life
13.4 %
14.6%
-1.2 p.p.
Annualised return on equity
14.0%
1.8%
12.2 p.p.
Return on financial investments
3.0%
1.6%
1.4 p.p.
31 Dec 2024
31 Dec 2023
Index
Balance sheet total
4,538.3
4,099.0
111
Equity
989.0
891.1
111
Contractual service margin (CSM)
286.8
238.4
120
Assets under management (AUM)
5,893.8
4,851.4
121
Number of employees
5,204
5,318
98
Number of employees (full-time equivalent)
5,088
5,190
98
* * The figures for the comparative period differ from those reported for the previous year due to a change in the definition of the Health segment and non-insurance
operations (see Section
2.9 of the Accounting Report
for further information).
The impact of discontinued operations is discussed in greater detail in Section
3.7.6
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). The presentation of the insurance operating result also takes into account
non-attributable costs, insurance revenue, insurance service expenses, net other insurance revenue and insurance service expenses, and state
compensation under the Decree on setting the maximum price of the supplemental health insurance premium. Furthermore, the net investment result
includes the financial result from insurance contracts, change in provisions for not achieving the guaranteed yield, gains/losses on investments in
associates and impairment of investments in associates, in addition to the investment result. Other categories are included in the result from non-
insurance operations.
8
2.2
Financial highlights of Zavarovalnica Triglav*
in EUR million
2024
2023
Index
Total business volume
1,134.1
1,215.6
93
Gross written premium
1,104.8
1,189.7
93
Other income
29.3
26.0
113
Total revenue
940.3
1,005.8
93
Insurance operating result
84.4
-10.6
Insurance revenue
911.1
985.6
92
State compensation pursuant to the Decree on supplemental health
insurance premium
11.0
0.0
Claims incurred
420.8
770.0
55
Acquisition and administrative costs including non att. costs
266.0
257.3
103
Net reinsurance service result
-130.7
39.5
Net other insurance revenue and expenses
-20.2
-8.3
242
Net investment result
33.8
24.9
136
Investment result
134,.9
67.1
201
Financial result from insurance contracts
-110.1
-62.9
175
Change in provisions for not achieving guaranteed yield
0.0
4.3
0
Gains/losses and impairments of investments in associates
9.0
16.3
55
Result from non-insurance operations
-0.6
1.5
Earnings before tax
117.6
15.8
746
Net earnings
98.2
14.2
691
Other comprehensive income
0.7
33.3
2
Combined ratio
92.0%
102.8%
-10.6 p.p.
Claims ratio
63.1%
77.7%
-14.5 p.p.
Expense ratio
29.1%
25.1%
4.0 p.p.
New business margin Life
14.6%
13.9%
0.7 p.p.
Annualised return on equity
13.8%
2.1%
11.7 p.p.
Return on financial investments
2.8%
2.2%
0.6 p.p.
31 Dec 2024
31 Dec 2023
Index
Balance sheet total
3,273.8
2,998.9
109
Equity
741.6
682.5
109
Contractual service margin (CSM)
271.4
225.5
120
Number of employees
2,223
2,349
95
Number of employees (full-time equivalent)
2,197
2,315
95
* The effects of the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav on 1 October 2024 are explained in more detail in
Section 2.7 Merger of
the subsidiary Triglav, Zdravstvena zavarovalnica in the Accounting Report.
Zavarovalnica Triglav's figures for 2023 are adjusted and include the data of the merged
company Triglav, Zdravstvena zavarovalnica. The impact of discontinued operations is discussed in greater detail in Section
3.7.6 of the Accounting Report.
Alternative performance measures and a
glossary of key terms are provided in the
appendix to the Annual Report.
9
2.3
Environmental, social and governance (ESG) aspects of the Triglav Group's operations
2024
2023
Index
1. Environmental aspects
Carbon footprint
(tonnes of CO2 equivalent)*
7,038
7,992
88
Scope 1 and 2 carbon footprint per employee (tonnes of CO2 equivalent)*
1.34
1.51
89
Electricity consumption (MWh)
9,420
10,342
91
Share of electricity consumption from renewable sources (%)
66
62
107
Written premium from products promoting social and environmental benefits (EUR million)
22.9
25.0
92
Assets under management in funds that incorporate sustainability aspects (EUR million)
1,977.3
1,139.0
174
Investments in social impact, green and sustainable bonds (EUR million)
339.4
262.5
129
2. Social aspects
Employee satisfaction (ORVI)
3.97
3.94
101
Average employee age
45.1
45.1
100
Women employees to total employees ratio (%)
55.7
55.0
101
Employee turnover (number of leavers/average number of employees; %)
16.5
12.0
138
Average number of training hours per employee
31
27
116
Lost time incident rate – LTIR (number of work-related incidents/total number of hours of all
employees x 1,000,000)
0.96
1.88
51
Client satisfaction of Triglav Group (NPS)**
70
73
97
Investments into the community (prevention, donations, sponsorships) (EUR million)
9.5
8.9
107
3. Governance aspects
Proportion of women in the management board/supervisory board in parent company (%)
20.0/37.5
20.0/25.0
Proportion of women at the first management level under the management board (%)
45.7
44.6
102
Proportion of women in management and supervisory bodies (%)
26.4
26.7
99
Average age of Zavarovalnica Triglav Management Board members
48.8
47.8
102
Independence of Zavarovalnica Triglav Supervisory Board members, shareholder representatives (%
of members)
100
100
100
Term of office of the current President of the Management Board (years)
11
10
110
Policies adopted: equal opportunities policy, anti-corruption policy, employee
protection/whistleblower protection policy
YES
YES
Fair business practices (number of fraud cases investigated)
1,756
1,771
99
Internationally renowned audit firm (Big 4)
YES
YES
Period of cooperation with the existing auditor (years)
6
5
120
Investor relations when publishing results
YES
YES
Economic value generated (EUR million)
1,712.9
1,642.4
104
Economic value distributed (EUR million)
1,621.3
1,682.9
96
Economic value retained (EUR million)
91.7
-40.5
* Includes Scope 1 and 2 emissions under the location-based method. A more detailed calculation of Scope 1 and 2 GHG emissions is shown in Section
10.2.1.1 The
Triglav Group's carbon footprint
.
** NPS shows the share of promoters who would recommend the Company to their acquaintances and friends based on experience.
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
10
2.4
Significant events in 2024
▪
Strong performance:
At the half-year mark, the Triglav Group had revised its annual profit
guidance upwards, driven by one-off events in addition to strong performance across all
segments. Sustaining its strong performance in the second half of the year, the Group
exceeded its year-end earnings before tax estimate (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 1.75 gross per share or EUR 39.7 million in total, representing a 5% 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 and AM Best
affirmed the high "A" credit rating with a stable medium-term outlook of the Triglav Group
(and thereby of Zavarovalnica Triglav and the subsidiary Pozavarovalnica Triglav Re). In
December 2024, S&P Global
upgraded its outlook from stable to positive
.
See Section
6.6
Credit rating of the Triglav Group and Zavarovalnica Triglav
for more information.
▪
Corporate governance:
The General Meeting of Shareholders appointed Barbara Nose and
Rok Ponikvar as new Supervisory Board members – shareholder representatives. The
President of the Management Board, Andrej Slapar, along with Management Board
members Uroš Ivanc and Tadej Čoroli, commenced a new five-year term of office. See
Section
5.3 Management bodies of Zavarovalnica Triglav
for more information.
▪
Business optimisation of the Health segment:
To simplify and optimise operations in the
Health segment on the Slovenian market, Zavarovalnica Triglav acquired the subsidiary
Triglav, Zdravstvena zavarovalnica. The merger was entered in the register of companies on
1 October 2024. See Section
2.7 Merger of the subsidiary Triglav, Zdravstvena zavarovalnica
of the Accounting Report for more information
.
▪
The Triglav Group's upgraded strategy:
The Triglav Group Strategy for 2025–2030 was
adopted at the end of the year. It is ambitious and focuses on ensuring profitable, safe and
sustainable operations. See Section
4. Triglav Group strategy and plans
for more
information.
▪
Issue of a subordinated bond:
As part of the Triglav Group's regular capital management
activities, Zavarovalnica Triglav issued a subordinated bond in July 2024 with a nominal
value of EUR 100 million, maturing in 20.5 years. See Section
6.7 Bonds
for more information.
11
2.5
Financial calendar 2025
Calendar of financial announcements for 2025
Date of announcement*
Time
Type of announcement
Quiet period**
Thursday, 6 March 2025
8:30
Preliminary key figures for 2024
From Thursday, 13 February
2025
Monday, 31 March 2025
8:30
Audited annual report for 2024
From Monday, 17 March
2025
Thursday, 24 April 2025
Call notice of the General Meeting of Shareholders to decide on the
distribution of accumulated profit
Wednesday, 21 May 2025
8:30
January–March 2025 interim financial report
From Wednesday, 7 May
2025
Tuesday, 3 June 2025
General Meeting of Shareholders and announcement of its
resolutions
Wednesday, 20 August 2025
8:30
January–June 2025 interim financial report
From Wednesday, 6 August
2025
Wednesday, 19 November
2025
8:30
January–September 2025 interim financial report
From Wednesday, 5
November 2025
* These are planned dates, which may differ from the actual dates.
** The quiet period denotes a period preceding the announcement of a financial report, during which Zavarovalnica Triglav does not disclose any
information on current operations to the public.
The general public is informed about the dates of key announcements 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
).
12
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. The Group also operates in the wider international environment, mainly through partnerships with foreign insurance brokerage and agency
companies as well as with reinsurers. Its key markets in the Adria region and its two core activities are shown below.
Strategic activities
Insurance
Asset management
Non-Life
Own insurance portfolio
(asset backing liabilities and
backing funds)
Life
Health
Mutual funds and individual
asset management
Reinsurance
Pension funds
Slovenia
Serbia
Croatia
Bosnia and
Herzegovina
Montenegro
North
Macedonia
International
insurance and
reinsurance
1st place
40.8%
market share*
(+1.3 p.p.)
5th place
7.7%
market share*
(+0.2 p.p.)
8th place
4.8%
market share*
(–0.4 p.p.)
5th place
8.3%
market share*
(–1.0 p.p.)
1st place
34.6%
market share*
(–0.4 p.p.)
3rd place
13.8%
market share*
(+0.4 p.p.)
2,621
employees
818
employees
567
employees
537
employees
378
employees
283
employees
EUR 990 million
total business volume
(
11%)
EUR 117 million
total business volume
(+19%)
EUR 93 million
total business volume
(+1%)
EUR 52 million
total business volume
(+1%)
EUR 51 million
total business volume
(+11%)
EUR 38 million
total business volume
(+15%)
EUR 377 million
total business volume
(+21%)
The figure illustrates the market share of the insurance business in each market. Data for Serbia represent the period from January to September 2024.
13
2.6.1
Insurance
The insurance activity
includes non-life, health and life insurance, as well as reinsurance.
The Group's insurance business comprises:
▪
in Slovenia:
Zavarovalnica Triglav d.d. and Pozavarovalnica Triglav Re d.d.;
▪
outside Slovenia:
seven insurance companies in the Adria region (Croatia, Serbia,
Montenegro, Bosnia and Herzegovina, and North Macedonia), Zavarovalnica Triglav d.d's
branch in Greece (under the FOE principle) and business partnerships under the principle of
free movement of services (FOS).
Insurance market position in the Adria region and South-East Europe
The Triglav Group strengthened its dominant market position in
the Adria region
(Slovenia,
Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia). According to the
latest available data for 2023, it increased its market share by 0.1 percentage points to 21.8%.
The market share of insurance groups and insurers in the Adria region in 2023 and 2022*
* Data for 2024 not yet available.
Source: Zavarovalnica Triglav's calculation based on the data of national insurance supervision agencies and insurance associations
Zavarovalnica Triglav, the Group's 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). The Romanian insurers Groupama Asigurari
and Allianz – Tiriac Asigurari again ranked second and third. Eight insurance companies of the
Triglav Group ranked among the top 100 insurers in South-East Europe in terms of gross written
premium. All 100 insurers collectively recorded a total written premium of EUR 12.4 billion, up
by 17% compared to the previous year.
2.2%
3.4%
3.4%
4.0%
5.3%
4.9%
6.6%
7.7%
8.0%
8.3%
13.2%
21.7%
2.2%
3.4%
3.5%
4.1%
4.4%
5.1%
6.0%
7.7%
8.3%
9.0%
12.9%
21.8%
Modra zavarovalnica
Allianz
Uniqa
Grawe
Vzajemna
Dunav
VIG
Croatia Group
Agram
Sava insurance Group
Generali
Triglav Group
2023
2022
14
The largest insurers in South-East Europe by written premium in 2023 (million EUR)
Source: SeeNews 2024.
2.6.2
Asset management
The asset management activity
at the Triglav Group comprises the management of the parent
company's insurance portfolios (assets backing liabilities and guarantee funds), clients' pension
savings through the insurance services of the Group's insurance and pension companies, asset
management by asset management companies and the management of clients' assets in
mutual funds and discretionary mandate assets. See Section
8.4 Asset management
for more
information on asset management and Section
7.5 Asset and investment fund management
market in Slovenia
for the situation of the asset management market in Slovenia.
225.9
228.8
248.0
256.1
289.3
311.0
322.1
344.8
385.5
478.8
512.6
538.1
702.0
821.5
982.8
Euroins
Euroherc Osiguranje
Generali Osiguranje Srbija
Lev Ins
Generali Romania
Vzajemna Zdravstvena Zavarovalnica
Asirom VIG
Dunav Osiguranje
Croatia Osiguranje
Omniasig VIG
Generali Zavarovalnica
Zavarovalnica Sava
Allianz
- Tiriac Asigurari
Groupama Asigurari
Zavarovalnica Triglav
15
2.6.3
Composition of the Triglav Group
As at 31 December 2024, the Triglav Group comprised 54 companies: the parent company, 31 subsidiaries, 12 associates and 10 joint ventures.
The Triglav Group members and their participating interests as at 31 December 2024
16
The changes in the Group are discussed in greater detail in Section
2.1.4.5 of the Accounting
Report.
2.7
Management of Zavarovalnice 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.
17
3.
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 2024
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 2024
In 2024, the Supervisory Board of Zavarovalnica Triglav d.d. diligently and responsibly fulfilled
its supervisory role, ensuring high-quality oversight of the operations of Zavarovalnica Triglav
d.d. and the Triglav Group. It oversaw various aspects of their operations and development, and
on that basis took appropriate decisions and followed up on their implementation. Individual
topics were initially reviewed by the Supervisory Board's committees, whose findings and
proposals supported well-informed and prudent decision-making. The Supervisory Board also
monitored the implementation and execution of the Triglav Group's strategy and actively
participated in the formulation and adoption of the new 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.
1.
INTRODUCTION
Pursuant to Article 282 of the Companies Act and Article 69 of the Insurance Act, the Supervisory
Board hereby presents its Report on the verification of the Annual Report of the Triglav Group
and Zavarovalnica Triglav d.d. for 2024 (hereinafter: the report) and its Opinion on the Annual
Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2024.
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 2024 and on
the verification of the Audited Annual Report of the Triglav Group and Zavarovalnica Triglav d.d.
for 2024.
An integral part of the report is also the opinion of the Supervisory Board on the work of the
Internal Audit Department in 2024 and the Annual Internal Audit Report of the Internal Audit
Department of Zavarovalnica Triglav d.d. for 2024.
2.
GENERAL INFORMATION
The Supervisory Board and its committees in 2024
The composition of the Supervisory Board in 2024 is described in Section
5. Corporate
Governance Statement (Supervisory Board) of the Business Report.
In 2024, the Supervisory Board
held nine sessions and had four committees: the Audit Committee, the Appointment and
Remuneration Committee, the Strategy Committee and the Nomination Committee. In addition,
at its 7th/2024 meeting on 21 August 2024, it established the fifth committee, the Risk
Committee. The composition of the Supervisory Board committees in 2024 as well as the more
important duties and powers of individual committees are described in Section
5. Corporate
18
Governance Statement (Composition of Supervisory Board committees and their activities in 2024)
of the Business Report.
Audit Committee
In 2024, the Audit Committee held six meetings, at which it, among other things:
▪
Monitored and discussed financial reporting procedures and the external audit of the annual
financial statements of the Triglav Group and Zavarovalnica Triglav d.d.;
▪
Assessed the content of the Annual Report of the Triglav Group and Zavarovalnica Triglav
d.d. for 2023 and the 2024 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. and the
Solvency and Financial Condition Report of the Triglav Group as at 31 December 2023,
including the independent auditor’s assurance reports;
▪
Discussed the Report on the Self-Assessment of the Effectiveness of Internal Controls in
Financial Reporting;
▪
Monitored the effectiveness of the Internal Audit Department;
▪
Took note of the Internal Audit Department's interim and annual reports, its annual work
plan for 2025 and its strategy for 2025–2030;
▪
Took note of the amendments to the Internal Audit Policy of Zavarovalnica Triglav d.d;
▪
Took note of remuneration of the director of Internal Audit Department for 2023;
▪
Monitored and discussed the risk management systems, the functioning of internal controls,
the Internal Audit Department's interim reports, recommendations, annual work plan for
2025 and guidelines for the 2026–2028 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 2024 and the auditor's
report following the pre-audit of Zavarovalnica Triglav d.d. for 2024;
▪
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 2023;
▪
Discussed the Statement of Compliance with the Slovenian Corporate Governance Code;
▪
Monitored the operation of the information technology and cyber security area;
▪
Took note of and approved the Quality Monitoring Report of the External Auditor for
Zavarovalnica Triglav d.d. for 2023;
▪
Led the selection process for the statutory auditor for the financial years 2025–2028;
▪
Discussed the Status Report on the Implementation of ESG Reporting;
▪
Took note of the Sustainability-Related Double Materiality Assessment Methodology of
Zavarovalnica Triglav d.d. and the Triglav Group and the Report on the Results of the
Sustainability-Related Double Materiality Assessment Process for Zavarovalnica Triglav d.d.
and the Triglav Group;
▪
Discussed the Status Report on the Implementation of the Digital Operational Resilience Act
(DORA) Requirements;
▪
Adopted amendments to the Rules of Procedure of the Audit Commission.
19
The external expert Jernej Pirc provided his expertise and support to the work of the Audit
Committee in relation to information technology issues. The Audit Committee carried out a
performance self-assessment with the aim of ensuring the continued improvement and quality
of its work and adopted an action plan for the improvement of its performance.
Appointment and Remuneration Committee
The Appointment and Remuneration Committee held seven meetings in 2024. 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;
▪
Preparing draft fit and proper assessments for Supervisory Board candidates, including the
external member of the Audit Committee and the newly appointed external member, as well
as for the body as a whole;
▪
Reviewing the calculation and amount of the average gross salary for 2024 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 basic salary of Management Board members and the
calculation of the variable part of remuneration of the Management Board members based
on the Group's performance;
▪
Approving the proposed amendments to the Methodology for determining the variable
remuneration and decreasing basic salary of Management Board members in 2025 and
setting the targets for the part of the salary for the performance of the Management Board
members for 2025;
▪
Discussing the report on the development of key promising staff at Zavarovalnica Triglav
d.d.;
▪
Discussing the succession evaluation report;
▪
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.;
▪
Discussing the Works Council's proposal for the removal of the Management Board member
– Worker Director and the proposal for an extraordinary fit and proper assessment of the
Management Board member – Worker Director.
Strategy Committee
The Strategy Committee, which held three meetings in 2024, devoted special attention to the
implementation and revision of the Triglav Group strategy for 2025–2029 and the starting
points for the development of the Triglav Group's business plan for 2025.
Risk Committee
The Risk Committee was established at the 7th/2024 Supervisory Board session, held on 21
August 2024. It met once in 2024. Its activities included:
▪
Adoption of the Rules of Procedure of the Risk Committee;
▪
Discussion of risk reports of Zavarovalnica Triglav d.d. and the Triglav Group as at 30
September 2024, including the findings of the ORSA process;
▪
Discussion of the updates of the main internal documents on risk management;
▪
Consideration of the Progress Report on the IT Project in Support of the Core Business, and
▪
Discussion of the implementation of the Business Intelligence Strategy.
20
Nomination Committee
The Nomination Committee was established on 29 November 2023 to carry out the nomination
process for appointing a candidate for Supervisory Board member – shareholder representative
to replace Igor Stebernak, whose term of office expired on 3 June 2024. Following the resignation
of Supervisory Board member Jure Valjavec, the Nomination Committee was tasked with
proposing two candidates for Supervisory Board membership. In 2024, the Nomination
Committee held five meetings and proposed two candidates for Supervisory Board members –
shareholder representatives, both of whom were subsequently appointed at the General
Meeting of Shareholders.
The Nomination Committee was re-established on 19 November 2024 to conduct the
nomination process for appointing two candidates for Supervisory Board members –
shareholder representatives, as the terms of office of Andrej Andoljšek and Tomaž Benčina on
the Supervisory Board will expire on 14 June 2025.
3.
WORK OF THE SUPERVISORY BOARD AND SCOPE OF SUPERVISION OF THE COMPANY'S
OPERATIONS IN 2024
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 2024 are based on the
supervision of the Company's and the Group's operations performed by the Supervisory Board in
2024, acting within its powers. The Supervisory Board held nine sessions in 2024.
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 2024 the Supervisory Board:
▪
Approved the Solvency and Financial Condition Report (SFCR) of Zavarovalnica Triglav d.d.
and the Triglav Group for 2023 and the annual capital adequacy as at 31 December 2023
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
2023, 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 2023 and the
Opinion of the Supervisory Board of Zavarovalnica Triglav d.d. on the Annual Internal Audit
Report for 2023 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 2024, from 1 January to 30 June
2024 and from 1 January to 30 September 2024;
▪
Approved the Internal Audit Department's work plan for 2025 and the Internal Audit
Department's strategy for 2025–2030;
▪
Discussed two half-yearly reports and the Annual Internal Audit Report of the Internal
Audit Department for 2023;
▪
Approved the Triglav Group's business policy and business plan for 2025 and took note of
the key findings of ORSA;
▪
Approved the new Triglav Group Strategy for 2025–2030;
▪
Proposed to the 49th General Meeting of Shareholders of Zavarovalnica Triglav d.d. to
grant a discharge to the Management Board for 2023, submitted a proposal on the
distribution of accumulated profit, presented the
remuneration policy and the
21
remuneration report for 2023, and acknowledged the resignation letter of a Supervisory
Board member, the expiry of a Supervisory Board member’s term of office and the
appointment of new 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 Actuarial Function Policy, the Outsourcing Policy, the Remuneration Policy of
Zavarovalnica Triglav d.d., the Internal Audit Policy of Zavarovalnica Triglav d.d. and the
Compliance Policy of Zavarovalnica Triglav d.d.;
▪
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.
b) With regard to the supervision of the management of the Company's operations, in 2024 the
Supervisory Board:
▪
Discussed the reports of the Audit Committee, the Appointment and Remuneration
Committee, the Strategy Committee, the Nomination Committee and the Risk 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;
▪
Monitored the effectiveness of the Internal Audit Department;
▪
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.;
▪
Discussed the merger of Triglav, Zdravstvena zavarovalnica d.d. with Zavarovalnica Triglav
d.d;
▪
Took note of Triglav, Zdravstvena zavarovalnica d.d.'s claim for reimbursement of the
difference between the amount of costs paid to healthcare service providers and the
amount of insurance revenue from supplemental healthcare insurance;
▪
Approved the issue of a subordinated bond;
▪
Took note of the report on the development of key promising staff at Zavarovalnica Triglav
d.d. in 2023;
▪
Took note of the Triglav Group Cyber Security Report;
▪
Was briefed on other information regarding Zavarovalnica Triglav d.d., the Triglav Group
and its subsidiaries, and
▪
Approved individual transactions in accordance with the law and the Rules of Procedure of
the Supervisory Board.
c) Other major actions taken by the Supervisory Board in 2024:
▪
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;
22
▪
Approving the Group's performance factor, determining the annual performance bonus for
the Management Board of Zavarovalnica Triglav d.d. for 2023 and approving the
amendments to the Methodology for determining the variable remuneration and
decreasing basic salary of Management Board members for 2024;
▪
Discussing the annual report of the Works Council of Zavarovalnica Triglav d.d. and the
Works Council's proposal to recall the Worker Director;
▪
Discussing the draft extraordinary fit and proper assessment of the Management Board
member – Worker Director and formalised the procedure for the Works Council to appoint
a new Worker Director;
▪
Taking note of the enhancement of the Triglav Group's minimum standards, as well as its
governance and internal control system;
▪
Adopting the labour costs plan of the Supervisory Board for 2025, the financial calendar
and the timetable for the meetings of the Supervisory Board and its committees in 2025;
▪
Performing other activities related to the supervision and work of the Supervisory Board
and 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 and translation
costs 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,
including all remuneration, amounted to EUR 407,932 in 2024.
4.
SELF-ASSESMENT
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). All members of the Supervisory Board and its committees diligently
adhere to the rules on managing conflicts of interest. 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
23
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. On 10 January 2024, the Slovenian Insurance Supervision Agency issued a final decision
prohibiting Vinko Letnar from serving as a Supervisory Board member, thereby confirming the
Supervisory Board's views and assessment. 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 (despite the absence of one Supervisory
Board member, employee representative) in 2024 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 2024 were successful.
5.
OPINION ON THE ANNUAL INTERNAL AUDIT REPORT FOR 2024
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 2024 was
submitted to the Supervisory Board, which took note of it at its session on 26 March 2025. The
report contains an overview of the implementation of the Internal Audit Department's
(hereinafter: IAD) planned activities in 2024 and a summary of material audit findings, an
assessment of the adequacy and effectiveness of risk management and the internal control
system of the audited areas in both the Company and the Group, 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
24
implementation of recommendations and other relevant information, the IAD assessed that risk
management and the internal control system of the audited areas in the Company and the
Group were overall appropriate and were constantly improving. The Company has an
appropriate governance system proportionate to the nature and scale of its operations and the
complexity of its risks. It regularly monitors its risk profile and actively enhances the risk
management system and the internal control system, particularly in areas of increased risk or
exposure. As the Group's parent company, it also oversees risk management and internal control
systems in its subsidiaries, providing support for their improvement. The IAD carried out advisory
activities, followed up on recommendations, and worked on quality assurance and improvement
of both the IAD and the internal audit departments of other Group members. This included the
necessary activities for the implementation of the new Global Internal Audit Standards.
Additionally, the IAD performed the internal audit function for Triglav, Zdravstvena
zavarovalnica. The IAD reported on the implementation of its work plan, material audit findings
and the monitoring of 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 2024, the Supervisory Board is of
the opinion that the IAD operated in line with its work plan for 2024, 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 2024.
6.
FINDINGS OF THE SUPERVISORY BOARD REGARDING THE OPERATIONS OF ZAVAROVALNICA
TRIGLAV IN 2024
Based on its monitoring and supervision of the Company's operations in 2024 and the
examination and verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav
d.d., the Supervisory Board hereby establishes that the Company performed well and pursued its
strategic objectives.
The Group generated EUR 159.0 million in consolidated earnings before tax and EUR 131.4
million in consolidated net earnings. The parent company's net earnings amounted to EUR 98.2
million.
The Group's total revenue reached EUR 1,393.2 million, 2% lower than the previous year
due to the termination of supplemental health insurance.
The Group's total business volume fell by 1% to EUR 1,717.6 million. The Group's insurance
companies generated insurance, coinsurance and reinsurance premiums of EUR 1,622.3 million
in 2024 (index 98), of which EUR 1,104.8 million (index 93) was earned by the parent company
following the merger with Triglav, Zdravstvena zavarovalnica. Premium growth was achieved in
all insurance segments, with the exception of the health segment, and in most markets where
the Group operates, except for the markets of Slovenia and Bosnia and Herzegovina.
The Group's consolidated operating expenses, including other attributable insurance service
expenses, increased by 5% year-on-year to EUR 450.8 million.
The Group's total equity increased by 11% to EUR 989.0 million as at 31 December 2024. Return
on equity stood at 14.0%.
The Group's financial stability, high capital adequacy and high profitability in 2024 were again
confirmed by the two renowned rating agencies S&P Global and AM Best by assigning an "A"
25
rating to the Group. Both rating agencies gave a stable medium-term outlook, but in December
2024, S&P upgraded its outlook from stable to positive.
7.
ANNUAL REPORT
The Management Board submitted the Unaudited and later the Audited Annual Report of the
Triglav Group and Zavarovalnica Triglav d.d. for 2024 to the Audit Committee and the
Supervisory Board.
The Supervisory Board hereby ascertains that the Annual Report, which includes the Triglav
Group Sustainability 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
2024 was audited by the audit firm Deloitte revizija d.o.o., Ljubljana, which on 11 March 2025
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 2024. In their independent
auditor's report, they addressed key audit matters related to the valuation of insurance and
reinsurance contract liabilities, insurance revenue, and the valuation of investments in
subsidiaries in the separate financial statements.
The audit firm Deloitte revizija d.o.o., Ljubljana also conducted the audit of the Group's
consolidated Sustainability Report for 2024 and issued an independent limited assurance
opinion on 11 March 2025.
Based on a detailed verification, the Supervisory Board established that the Annual Report of the
Triglav Group and Zavarovalnica Triglav d.d. for 2024, 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 also verified the
consolidated Sustainability Report, prepared in accordance with ESRS and the EU Taxonomy
Regulation, ensuring reporting integrity and regulatory compliance. 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 2024, 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.
The Supervisory Board has no comments on the certified auditor's Limited Assurance Report on
the consolidated Sustainability Report for 2024, included in the Annual Report. The auditor
concluded that nothing has come to their attention that causes them to believe the consolidated
Sustainability Report is not prepared, in all material respects, in accordance with the applicable
legal requirements.
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 2024.
At its session, the Supervisory Board also discussed the Remuneration Report for 2024, which
was verified by the authorised audit firm Deloitte revizija d.o.o., Ljubljana: In accordance with
paragraph six of Article 294b of the Companies Act (ZGD-1), the auditor issued a limited
26
assurance opinion confirming that the Remuneration Report contains all the information
required by paragraphs two and three of Article 294b of the ZGD-1.
8.
PROPOSAL FOR THE DISTRIBUTION OF ACCUMUATED PROFIT
At its 2nd/2025 session, the Supervisory Board examined the Management Board's proposal for
the distribution of accumulated profit as at 31 December 2024, 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 109,430,652.82 as at 31 December 2024 shall be
distributed as follows:
▪
A part of the accumulated profit amounting to EUR 63,658,414.40 shall be distributed for
dividend payments. A dividend in the amount of EUR 2.80 gross per share shall be paid to
the shareholders appearing in the Share Register as at 17 June 2025. By 18 June 2025, 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 45,772,238.42 shall be decided
on in the coming years."
Andrej Andoljšek
Chairman of the Supervisory Board
Ljubljana, 26 March 2025
27
4.
Triglav Group strategy and plans
-
Strategic risks and business opportunities are regularly assessed in response to the
challenges and opportunities arising in a rapidly changing business and social environment.
-
From 2025 to 2030, in line with its vision as the region's leading international financial and
insurance group, the focus will be on profitable and sustainable growth in both strategic
activities. The ambition is to double earnings by 2030 and drive growth in markets outside
Slovenia. With a client-centric approach, the Group will pursue further digitalisation and
strengthen existing strategic approaches to address evolving client and market needs.
-
To ensure a balanced transition to a low-carbon society, the business model and investment
strategies are being adapted, with the introduction of sustainable products and services.
-
The Group demonstrated the resilience of its business model with strong performance in
2024. Its operations will continue to be profitable in 2025, with further expansion of the
business planned.
4.1
Today's challenges and opportunities
The environment in which the Group operates is characterised by rapid change and increasing
complexity. Responsiveness and reliability remain central to the Group's revised strategy,
enabling it to overcome challenges and create long-term value.
By analysing and adapting to evolving economic, social and environmental demands, the Group
remains focused on maintaining steady, profitable growth while identifying opportunities and
risks arising from global and regional developments.
Key developments that significantly impact the Group's business today – and are expected to
continue shaping its operations in the coming years – include macroeconomic conditions,
particularly inflation and interest rate volatility, as well as geopolitical uncertainties affecting
financial markets and consumer confidence.
The growing impact of climate change continues to influence the insurance sector, while
technological advancements, particularly in digitalisation and artificial intelligence, are driving
innovation and reshaping client expectations. Demographic shifts, including ageing populations
and evolving workforce dynamics, present both challenges and opportunities for the
development of new products and services.
4.1.1
Risks related to the macroeconomic and regulatory environment
The global economic landscape continues to be shaped by persistent geopolitical tensions,
easing inflationary pressures and subdued economic growth. Geopolitical risks arising from the
Russia–Ukraine war and instability in the Middle East are affecting commodity flows, supply
chains, market sentiment and international political stability. Inflationary pressures have eased,
with interest rates declining as expected at the shorter end of the curve while rising slightly at
the longer end. Weak demand and an uncertain economic outlook are slowing overall economic
activity.
Financial markets have been influenced by continued uncertainty surrounding the pace of policy
adjustments by the major central banks in 2024. Gradual changes in monetary policy, along
with interest rate adjustments, have generated cautious optimism, tempered by the awareness
that sudden geopolitical or regulatory shifts could rapidly alter the economic landscape. Despite
this volatility, equity markets recorded significant growth throughout most of the year. For
further details on macroeconomic trends and geopolitical risks, see Section
7. Macroeconomic
28
environment and market trends
, and for market risks, refer to Section
2.8 Risk management
in
the Accounting Report.
The Group's operations in the Health segment were significantly affected in 2024 by the
regulatory framework for supplemental health insurance in Slovenia, introduced in 2023. While
presenting short-term challenges, this regulatory change also created opportunities for
innovation and sustainable growth within the complementary health insurance segment.
In this dynamic environment, the Group remains focused on resilience and strategic flexibility,
closely monitoring external factors to effectively adapt to macroeconomic and geopolitical
developments.
The Group's approach to challenges and risk management
To manage market risks,
the investment policies
of Group companies primarily focus on
ensuring the security of assets covering future non-life and life insurance liabilities. These
policies are designed in the best interests of all beneficiaries, aligning with the objectives set
out in insurance contracts. Investments are broadly matched to the nature and duration of
insurance and reinsurance liabilities through a robust
asset-liability management
system,
allowing for effective management of market risks while maintaining a balance between
investment security and achieving an adequate return on investment portfolios. In managing
the remaining assets, the Group strives to achieve an adequate return, while taking into account
all assumed risks and maintaining a high overall credit rating across the whole investment
portfolio.
As part of the investment process, an effective monitoring system has been established to
oversee
the entire counterparty portfolio
, ensuring timely risk management in the event of any
deterioration in counterparties' credit quality.
Liquidity management
remains a priority, with the Group meeting all obligations in a timely
manner by maintaining adequate reserves and actively monitoring cash flows. Within the
liquidity risk management system, investments in alternative assets are particularly closely
monitored based on their specific characteristics.
Although inflationary pressures have eased, they continue to affect claims payments and
operating expenses. The increase in claims payments is managed through pricing policy
adjustments and regular monitoring and management of operating expenses to ensure
profitability and resilience.
In identifying potential risks, scenarios involving a tightening of the macroeconomic conditions
and a deterioration in financial market conditions are regularly assessed. These risks are
managed by maintaining the resilience of investment strategies, ensuring operational flexibility
and safeguarding liquidity against potential shifts in demand for insurance products.
Ongoing efforts are also made to ensure compliance with all existing and emerging regulatory
requirements, while simultaneously exploring opportunities for innovation and new product
development in a changing environment.
Geopolitical risks are expected to remain significant in the future. As such, 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 detailed in Section
2.8 Risk
management
of the Accounting Report.
29
4.1.2
Climate change and sustainable development
The physical risks of climate change, which have a significant impact on the insurance industry,
are linked with the increasing severity and frequency of extreme weather events, affecting both
social and economic structures. In the region where the Group operates, more frequent and
severe floods, droughts and hailstorms are of particular long-term concern. Rising demand for
insurance coverage presents opportunities for business expansion, alongside challenges in
securing adequate reinsurance cover and implementing effective risk management strategies.
The transition to a low-carbon economy, driven by evolving policies, consumer behaviours and
market sentiment, is significantly reshaping the business environment. Beyond operational
risks, it introduces legal, reputational and technological risks, including the need to adapt
business practices to reduce greenhouse gas emissions. For insurers, the indirect impact of
emissions through investment and insurance portfolios can be more substantial than the
impact of the direct carbon footprint. Transition risks may also lead to fluctuations in asset
values, while shifts in environmental policies and consumer behaviour could significantly affect
policyholders and insurance products. Investment and insurance activities play a key role in
influencing issuers and policyholders, promoting a faster transition to sustainable business
practices.
Global population growth and economic development contribute to the overconsumption of
natural resources, increasing the importance of balanced social development to reduce
inequalities and improve conditions for vulnerable groups. Rising temperatures may lead to
higher mortality rates, the spread of infectious diseases, and an increased likelihood of new
epidemics or pandemics. These factors could drive greater demand for life and health insurance
while exacerbating broader climate change impacts on public health and social stability.
The insurance sector can enhance its resilience by proactively addressing climate change
challenges and promoting sustainable development. By offering insurance solutions and other
services to mitigate climate-related risks and adopting investment policies that support
sustainability, the sector can meet evolving client needs while facilitating a stable transition to
a more sustainable future.
The Group's approach to challenges and risk management
The Group conducts its two core activities to create long-term economic, social and
environmental value for stakeholders, wider society and the environment. By prioritising
sustainable business, it fulfils its mission of
Creating a Safer Future
.
The Sustainable Development Policy defines the approach to achieving strategic sustainability
ambitions by identifying impacts, risks and opportunities while integrating global best practices
into business operations.
As part of the Group's own risk and solvency assessment (ORSA) process, particular attention is
given to identifying and assessing climate risks. A qualitative assessment of assets and liabilities
was conducted, highlighting the significance of climate risks for the investment segment in the
medium and long term. Transition risks could become material over the medium or long term if
legal and technological risks materialise. A stress scenario was carried out to assess physical
risks within the insurance portfolio, which could already be material in the short term. Ensuring
adequate client protection remains a priority, with reinsurance terms and conditions adjusted
where necessary.
The Group is also examining biodiversity risks. Although linked to climate risks, these pose
distinct and complex challenges. In the short term, they are not considered material; however,
transition risks affecting assets and liabilities could become increasingly significant in the long
30
term. Physical risks related to the investment portfolio remain negligible, as no major
dependence on nature or natural resources has been identified. However, physical risks within
the insurance portfolio are expected to grow in materiality over the long term.
To reduce policyholders' exposure to physical risks and insurance losses, priority is given to
preventive solutions
that mitigate climate risks. These include raising client awareness of
climate change through tools such as the i.triglav digital platform, promoting insurance
products for electric and hybrid vehicles, and offering tailored cover for renewable energy
companies. Sustainability efforts also extend to claims settlement processes, where an
environmentally responsible reuse and reduce approach is applied.
Sustainability-related risks also extend to the Group's reputation. Such risks may materialise
over time, potentially affecting all key business processes, acquisition and retention of business
and employees.
See
Section 10 of the Sustainability Report
for further details on the sustainability aspects of
operations, including the double materiality assessment process.
4.1.3
Digital transformation and cybersecurity
The digital transformation of the financial sector is driven by rapid technological advances,
evolving client expectations and increasing competition. Insurers are prioritising seamless user
experiences, flexible product offerings and secure operations when adopting new technological
solutions and innovative business models. The use of advanced analytics, cloud services, the
Internet of Things (IoT), cognitive computing, advanced mobile networks, process automation
and robotics continues to expand. The integration of artificial intelligence (AI) into business
processes is also advancing rapidly, influencing areas such as underwriting, claims management
and client engagement.
Digitalisation presents significant opportunities for business optimisation, but also introduces
new challenges and risks. The increasing interconnectedness of modern business ecosystems
and reliance on external ICT service providers heighten vulnerabilities to business disruptions,
data breaches and sophisticated cyberattacks. Strengthening digital resilience through robust
cyber risk management, continuous testing and ongoing improvements to response plans is
therefore essential to maintaining client trust and ensuring sustainable performance.
At the core of digital transformation is the need for highly skilled employees with expertise in
areas ranging from AI-driven decision-making to maintaining a secure digital infrastructure.
Many insurers are strengthening partnerships and alliances with specialised external providers
to meet evolving requirements and access innovative technologies and expertise.
These trends are reflected in regulatory developments. In 2024, the European Parliament and
the European Council adopted the Artificial Intelligence Act, introducing extensive requirements
for providers and users of high-risk AI systems. The Digital Operational Resilience Act (DORA),
which comes into force in January 2025, mandates comprehensive digital risk management and
cybersecurity practices for financial institutions. Additionally, the first set of implementing acts
for the EU Digital Identity Wallet was adopted. These regulatory developments will shape the
future of the financial sector, influencing business practices and client protection.
The Group's approach to challenges and risk management
The Group continually adapts to changes in the digital landscape, accelerating the digitalisation
of its operations and launching innovations that align with its strategic development goals.
Solutions such as remote signing, video identification, multi-channel access, electronic
31
identities and remote business have become integral to the Group's operations. The
digitalisation process is continuously being expanded, enhanced and upgraded. See Section
4.4
Development activities (digital transformation)
for more information on development activities.
The Group's risk management processes were upgraded with additional rules and controls to
comprehensively and systematically identify, assess and manage the risks posed by new
technological solutions.
New solutions are evaluated before being implemented and regularly tested in terms of security
and business continuity. Alignment with clients' expectations and needs is ensured, with
improvements based on client feedback. As part of efforts to innovate and enhance business
process efficiency, tools that increase productivity, including AI, are deployed.
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 to reduce 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
.
Cyber risks 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. The Company reaffirmed its commitment by extending the ISO/IEC
27001:2022 certification for the information security management system.
See Section
11. Digital Operational Resilience Report
for more information.
4.1.4
Demographic and human resource risks
Demographic trends and changing workforce dynamics continue to shape the insurance
landscape. Ageing populations, lower fertility rates and the rising incidence of chronic diseases
are placing sustained pressure on social welfare systems and healthcare services, affecting their
long-term sustainability and influencing demand for insurance products. The evolving needs of
clients, especially younger and more price-sensitive segments, call for more accessible, flexible
and inclusive insurance solutions. Increasing awareness of the interplay between health,
lifestyle and environmental factors is also prompting clients to seek tailored products and
advice.
The advancing digital transformation and rapid technological developments, increasingly
characterised by artificial intelligence, are driving the demand for skilled professionals,
particularly those combining industry knowledge with digital skills. High employment rates and
competitive labour market conditions often result in demand exceeding supply, leading to
increased salary pressures and recruitment challenges. Flexible working conditions, continuous
training and a strong corporate culture have become essential for maintaining a stable talent
base, although these measures also contribute to higher labour costs.
32
Demographic pressures, changing client expectations and a shortage of professionals with
digital skills elevate the importance of innovative products, effective talent management, and
inclusive and accessible solutions.
The Group's approach to challenges and risk management
Based on regular monitoring of demographic trends in all the Group's markets, insurance terms
and calculation factors are adjusted, and opportunities for new insurance coverages and
products are identified. By expanding the range of products, risks not sufficiently covered, or not
covered at all, by the compulsory social insurance scheme are addressed. 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. Young people's awareness of financial security is raised
through new insurance products. Multi-channel offerings and innovative approaches in
advertising and communication are used to engage them.
The social importance of healthcare continues to grow. The Group is working to expand its range
of healthcare services, providing insured persons with timely, high-quality and more affordable
healthcare services than its market competitors. The transformation from a traditional health
insurance provider into a health partner is underway, offering clients comprehensive, lifelong
services. By providing complementary health insurance products and services, the Group
mitigates the risks associated with healthcare reform and the consequences of the termination
of supplemental health insurance in Slovenia.
Employees play a key role in achieving the Group's ambitious strategic goals. The labour
shortage in Slovenia provides an incentive to attract new employees with specialist skills and
competences, particularly in IT, digitalisation, business intelligence, risk management, actuarial
science and related fields. The risk of key staff leaving also remains a current concern.
Efforts to reduce the risk of unwanted turnover include quality working conditions, employee
benefits and quality communication. 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 permits, hybrid work is provided and expanded for employees of
Group companies. See Section
8.5 Investment in own-use real property and equipment
for more
information on the hybrid workplace.
Employee satisfaction within the Group is regularly monitored by measuring the organisational
climate. According to this year's results, the Group is effectively adapting to changes,
communication is open and effective, and the Group remains an attractive working
environment. See Section
10.3.1 Employee care
for more information about care for employees.
33
4.2
Triglav Group Strategy for 2025 - 2030
Strategic risks, challenges and opportunities, as well as the needs of key stakeholders, are
regularly monitored alongside ongoing assessments of the business model and strategy (see
Section
10.1.3 Triglav Group's business model and value chain
).
Based on the analysis of industry trends, challenges and opportunities in the business
environment, as well as the expectations of key stakeholders, the business strategy for 2025–
2030 was ambitiously upgraded at the end of 2024. In its implementation, the mission of
Creating a Safer Future
will continue to be pursued, while enhancing the profile of the Group as
an international insurance and financial group, which is the vision.
Mission:
Creating a Safer Future
We are client-focused.
We help our partners grow.
We promote employee development.
We are a profitable, stable and safe investment.
Vision:
An international insurance and finance group.
The Triglav Group is the leading insurance and financial group in the Adria
region, strengthening its dominant position in the region.
An international group, further strengthening its identity and visibility. Revenue
from regional and international markets will exceed that of the Slovenian
market.
Values and
beliefs:
Responsiveness, simplicity and reliability
are reflected in daily operations.
▪
A group that provides clients a sense of
security
. A reliable partner that
ensures a
simple
(clear and understandable steps),
fast, predictable
(consistent procedure) and
transparent
experience.
▪
An
agile and efficient organisation
that responds quickly to challenges and
adapts
to
environmental
changes.
Processes
are
lean,
simple,
technologically advanced and cost-effective.
▪
Committed to fostering a
winning and entrepreneurial mindset
.
Strategic
activities:
Insurance
Asset management
▪
Non-Life
▪
Life
▪
Health
▪
Reinsurance
▪
Own insurance portfolio (assets
backing liabilities and guarantee
funds)
▪
Mutual funds and discretionary
mandate services
▪
Pension funds
34
The Triglav Group's strategic ambitions to 2030
▪
Highly profitable operations – value for shareholders
The Group aims to
double earnings before tax
to EUR 250–300 million
by
2030
, while remaining a profitable, stable and safe investment for
investors. While pursuing high profit targets, the Group is expanding the
scale of its business, ensuring that profit sources are diversified both
geographically and across products and services, thereby consolidating
its market position.
The Group's dominant market position in the region
allows it to leverage
economies of scale and achieve greater process efficiencies, which will
be further strengthened.
Cost-effectiveness will be improved by simplifying and centralising
processes and continuing the digital transformation of operations.
The Group aims to maintain its high
"A"
credit rating
as an insurance
and financial group, confirming its sound risk management and capital
adequacy. The target capital adequacy ratio has been set at 200–250%
(see Section
9.2.1 Capital management
for more details).
In the insurance business, the goal is a high level of profitability, with
the aim of keeping
the combined ratio for the Non-Life and Health
segments
below 95%
throughout this strategy period.
Plans include growing earnings per ZVTG share at an average annual
rate of 10% and the book value per share at 8%. The ambition is to
achieve a net return on equity (
ROE
) of
12–13%
by 2030.
In line with
the dividend policy
(see Section
9.2.1 Capital management
for more information), the Group plans to distribute approximately EUR
400 million in dividends to shareholders over this strategy period. At the
same time, the target capital adequacy and favourable conditions for
the Group's growth and development will be maintained.
130–150
250–300
Načrt 2025
2030
Earnings before tax
(in EUR million)
x2
12–13%
2030
ROE
≈5.0
≈9.0
2024
2030
Ambitious EPS Growth (in EUR
million)
≈10%
CAGR 24
–
30
Načrt 2025
2030
Combined ratio Non-Life and
Health
< 95%
2025 Plan
2030
2025 Plan
2030
35
▪
Above-average growth in markets outside Slovenia
Increasing the Group's visibility as
an international group, while
maintaining
a dominant market position in the Adria region
. The
focus is on
improving
the position in individual markets within the
region.
In international markets outside the region, growth opportunities
are pursued through
reinsurance activities and new business models.
▪
Ambitious
growth in business
volume
and assets
under
management
Expansion of the business volume.
The
Group aims for its business
volume to reach EUR 2.5–3.0 billion in 2030, with
assets under
management
exceeding EUR 10 billion.
Ambitious
organic growth will be complemented with acquisition
activities, should the right opportunities arise.
▪
An outstanding client experience
Clients and their needs
remain
at the core of all activities, with a
focus on delivering a consistently high-quality experience at every
point of contact
.
A diversified offering is adapted to clients' needs and expectations, ensuring their well-being
and enhancing their quality of life. Client-specific requirements are considered, providing
affordable, innovative, simple
and
comprehensive insurance and investment solutions
.
▪
An agile and efficient organisation
The Group operates as an agile organisation, adapting effectively to challenges and
environmental changes, including climate change. This strengthens the Group's ability to
reallocate, upgrade or phase out assets, adjust its product and service portfolio, and develop
employees' core competencies. Its activities are focused on further process simplification.
▪
An environment that attracts top talent
The Group brings
together engaged, collaborative and entrepreneurial employees, who share
common values and thrive in a creative, dynamic work environment.
The Group's organisational culture is designed for
high efficiency and is aligned with its vision
as an international group.
The
Group has also set out its sustainable development ambitions, see Section
10.1.2.1 Strategic
ambitions in sustainable development
for more information.
1.7
> 1.8
2.5–3.0
2024
2025 Plan
2030
Total Business Volume
(in EUR billion)
5.9
> 10
2024
2030
Assets under Management
(in EUR billion)
36
4.3
Implementation of the Triglav Group strategy in 2024
Operating safely and profitably, the Group achieved a business volume of EUR 1.7 billion and
met its target capital adequacy ratio. Dividends of EUR 39.8 million were paid to shareholders.
Planned development activities in strategic insurance and asset management businesses were
successfully delivered, reinforcing the Group's leadership in both the sector and the region.
By the end of 2024, the Group had met most of the objectives outlined in its strategy for the
period to 2025. Adequate profitability was achieved, with return on equity exceeding the 10%
target. Despite a shortfall in the Health segment, total business volume surpassed the strategic
target in 2024, and the share of premium written outside Slovenia increased. Despite challenges
arising from a changing business and operational environment, the Group maintained a high
level of client satisfaction (NPS).
Client focus remained a key priority, with extensive development efforts dedicated to enhancing
the user experience in underwriting and after-sales activities. Insurance products and services,
as well as sales processes and channels, were further developed. The network of strategic
partnerships was strengthened, and progress was made towards the digital transformation of
processes.
The Group remained committed to its core values:
responsiveness, simplicity and reliability. A
visual employer brand identity was developed, and employees were encouraged to enhance
their competences, adopt a healthy lifestyle and embrace the organisational culture. High scores
were recorded on strategic indicators measuring satisfaction and engagement.
Through its sustainability-oriented operations, the Group reaffirmed itself as a development-
driven environment for employees and business partners and a stable investment for investors.
Safe and profitable operations
Profitable operations and credit rating
▪
Earnings before tax: EUR 159.0 million (earnings before tax from continuing operations: EUR 142.9
million (earnings before tax from discontinued operations: EUR 16.1 million).
▪
Return on equity (ROE): 14%.
▪
The dividend was paid out in line with the dividend policy, amounting to EUR 39.8 million, or EUR 1.75
gross per share.
▪
Credit rating: The high "A" credit rating was reaffirmed.
Growth in business volume
▪
Gross written premium: –2%; excluding the impact of the termination of supplemental health
insurance, growth would have been 10%.
▪
The Group's market share in the Slovenian insurance market: +1.3 percentage points.
▪
Position in the Adria region: The largest insurance group in terms of written premium, with a 21.8%
market share in 2023.
Capital adequacy and capital allocation
▪
Prudent implementation of the capital management policy.
▪
Financial strength and capital adequacy maintained within the target range.
Internal synergies and productivity growth
▪
Gross written premium per Group insurance company employee: EUR 353 thousand.
An outstanding client experience
Client satisfaction and loyalty
▪
A 20% increase in the number of users of the i.triglav digital office in the Company, and a 30% increase
in the number clients who gave their consent to conduct business electronically.
▪
High client satisfaction score with Group services (Net Promoter Score): 70.
▪
Total number of clients: Up by 6%.
37
Comprehensive and client-tailored services and an omni-channel approach
▪
Upgraded i.triglav digital office.
▪
Development of a hybrid sales channel.
▪
Technologically modernised, AI-powered claims reporting and settlement processes.
▪
The TRIA virtual assistant enhanced with OpenAI technology, offering personalised communication
for registered users.
Products and services
▪
Development of new insurance products, upgrades to existing ones and an expanded range of
coverages.
▪
Renewal of Triglav Skladi's product range.
Development of service-oriented business models and digital transformation
Advanced service-oriented business models
▪
New services and partnerships in business ecosystems to deliver an outstanding user experience.
▪
A centralised communication entry point for clients.
Digitalisation, optimisation and automation of business processes
▪
Optimised online insurance sales, training and digitalisation of partner engagement processes.
▪
Improved step-by-step digital claims reporting.
▪
Development of an AI-based sales assistant to improve the user experience in online underwriting
and remote claims reporting.
Development of an organisational culture
Living the Triglav Group's values
▪
Delivering on the Group's values when working with external and internal clients.
▪
Promoting volunteering to strengthen and better integrate teams.
▪
Commitment to a healthy lifestyle and mental health.
Employee acquisition, development and retention
▪
Introduction of DNLA testing in Group companies.
▪
Employer brand enhancement through youth engagement events and a sustained social media
presence.
▪
Group-wide standardisation of recruitment advertisements.
▪
Initiatives to improve employee satisfaction and engagement.
Development of key and high-potential staff and a succession system
▪
Identification of a new group of high-potential young employees within the Group, with participation
in the Triglav International Business Academy (TIBA).
▪
Identification of potential management successors.
▪
Delivering targeted training to groups of key and high-potential staff and leaders.
Delivering on ESG strategic ambitions
▪
Effective reduction of paper and energy consumption while increasing the share of digital business.
▪
Integration of sustainability principles into mutual fund management.
4.4
Development activities
In 2024,
client focus
was further strengthened in alignment with the Group's existing strategy,
particularly through the implementation of an advanced data management system, business
process digitalisation and, where applicable, the implementation of artificial intelligence into
business processes. These steps were taken to address the evolving needs of clients and partners,
as well as emerging risks and regulatory requirements.
In both of the Group's core businesses, development activities were aimed at delivering an
outstanding client experience at all stages of engagement.
38
Insurance
Business digitalisation and simplification, along with the customisation of products and services
for clients and partners, are closely intertwined. The main new insurance solutions have been
grouped according to their dominant features, directly supporting client focus.
Digitalisation of business with clients and partners
For clients using only digital channels, the sales process was further digitalised to enhance the
overall digital experience. For multi-channel users,
the hybrid journey
was improved to facilitate
seamless transitions between channels.
In non-life insurance, a user-friendly, easy-to-understand and efficient experience was achieved
with
step-by-step claims reporting
. A digitalised claims reporting process was established with
selected partners in the Pets ecosystem.
The functionalities of the i.triglav digital office in Slovenia were extended to include
risk
assessment and claims settlement status for non-life claims
. For clients in
Croatia
, the non-life
insurance content on this increasingly popular platform was updated, and additional
functionalities were added.
In
Serbia
, the digital presence of travel insurance was enhanced. In
North Macedonia
, non-life
insurance business with financial institutions was digitalised, and an online platform for life
insurance banking partners was launched. In
Montenegro
, an online bundled insurance tailored
to the SME segment was offered.
Products and services have been simplified and adapted to meet evolving client needs.
Building on experience and results in building damage repair,
collaboration with major partners
modernised the
report & repair
process in the Home ecosystem. Non-life insurance products
were upgraded with GIS-based flood risk classification. For motor vehicle insurance, the
approach to commercial discounts for individuals was streamlined.
A new life insurance product, LAJF, was designed for
young people
, while the investment
insurance option
for older people
was extended up to 75 years. Coverage for genetic analysis
(DNA analysis) was updated in additional life insurance for critical illnesses.
In
health insurance
, self-pay dental services and
Zdravnik 360
(Doctor 360) insurance products
were upgraded, while new family medicine and paediatric concession service options were
launched. The sales and underwriting process for group supplemental pension insurance was
adapted to meet
the needs of micro and small enterprises
.
In the Adria region, products were redesigned, and several new ones were launched. In
Croatia
,
comprehensive car insurance and home insurance products were upgraded. A new guaranteed-
return endowment life insurance product for individuals was introduced, and a new product,
Riziko plus
(Risk Plus), was launched for
financial institutions
. In
Serbia
, a new non-life product,
Triglav biznis
(Triglav Business), was launched for
entrepreneurs
. For
life insurance clients
, a new
product was linked to investment funds, and digital communication channels (email, SMS, Viber)
were significantly expanded. Documentation for the sales network was simplified, and
cooperation with non-life insurance sales centres was strengthened. In
North Macedonia
, new
products, including overdraft insurance and photovoltaic insurance, were launched.
A new
contact centre for life insurance client support
was established, and new coverage options were
added to this insurance class. In
Bosnia and Herzegovina
, new communication channels (email,
Viber) were introduced for non-life insurance clients, and travel insurance was renewed. For
39
companies and other institutions, a new group term insurance for employees under life
insurance was introduced. In
Montenegro
,
a new contact centre
and online bill payment system
were launched.
Partnership development
In developing excellent relationships with external partners, greater emphasis was placed on
training activities. Across all markets, high-quality user experiences were ensured when using IT
solutions, and in some cases, specialised units were established to collaborate with partners.
A single integration layer was introduced for the sale of embedded insurance
through consumer
electronics stores and travel agencies
. IT support for
partner banking networks
was modernised
in several Group companies, with efforts focused on expanding and upgrading cooperation.
Cooperation with leasing service providers, roadworthiness test providers and vehicle importers
was supported by new IT solutions, particularly those based on the new AdInsure 3.0
underwriting application.
Digital transformation
A data-centric approach
is at the core of the Group's digital transformation. It serves as a key
foundation for strategic and operational decision-making, supported by a plan to systematically
enhance the data competences of employees. Through the
Triglav Group Data Analytics Platform
Strategy
, a holistic approach to data management and analysis was adopted, advancing
analytical capabilities and reinforcing the foundation for the future integration of artificial
intelligence into business processes.
Artificial intelligence (AI)
was effectively integrated into new digital solutions for process
automation. In the Client Contact Department, case handling was automated using solutions
powered by Azure OpenAI and ChatGPT.
The TRIA virtual assistant
was upgraded with OpenAI
technology to provide faster and more accurate responses to client enquiries regarding products
and services, while retrieval-augmented generation (RAG) technology was employed for
personalised communication with users.
The new
cloud computing strategy
defines the Group's strategic guidelines in this area. Core IT
systems were upgraded to support new and upgraded products. Projects to centralise IT
infrastructure continued, optimising the use and cost-efficiency of IT equipment while
enhancing security.
The DRAJV app
was further developed into a transactional and ecosystem platform, which
includes policy overviews for motor vehicle and travel insurance, renewal and underwriting of
new insurance policies, claims reporting, vehicle assistance requests, tow tracking and
promotional functionalities.
The number of users of Triglav's digital platform
increased by 20%, reaching over a quarter of a
million. The number of clients consenting to electronic business transactions grew by 30%,
directly supporting the Group's strategic objectives.
Asset management activity
A significant shift in development was achieved with the renewal of Triglav Skladi's product
range, both in mutual fund management and discretionary mandate services, offering new
clients only products that adhere to sustainable principles.
40
An advanced and user-friendly mobile app was launched to provide a simpler and more
comprehensive user experience, complementing the digital marketing and sales model for
mutual funds. Additionally, the complex implementation of an IT solution for digital business
process execution was completed, enhancing the efficiency and transparency of fund
management and discretionary mandate services.
Brand development
The strength, visibility and perception of the Triglav brand, which are regularly monitored, are
key factors in the Group's market position and in seizing development opportunities. Key
findings from the Group's 2024 general public reputation survey indicate that it ranks among
the top five most reputable in the industry across nearly all of its markets. The Group ranks
highest in Slovenia, followed by Montenegro and North Macedonia. The business community's
assessment of its performance and reputation remains high, and the brand excellence index is
stable.
In 2024, a broad focus was placed on
employer brand
. Its visual identity was developed, and the
brand was strengthened through a multi-channel approach and a broad range of activities for
both employees and potential recruits. These included communication campaigns and events
for employees (Festival of Ideas, Triglav International Business Academy), innovative events for
students and targeted recruits (
Top Experience
– exploring AI in insurance) and other initiatives,
such as popular team-building programmes incorporating corporate social responsibility.
See
Section 10. Sustainability report for more information.
4.5
Implementation of the Triglav Group's business plans in 2024
The Group achieved
earnings before tax of EUR 159.0 million
(EUR 142.9 million from continuing
operations), exceeding both the original target (EUR 100–120 million) and the upwardly revised
annual profit guidance issued during the year ( EUR 130–150 million). The result reflects strong
business performance and the impact of one-off events (see Section
8. Operations of the Triglav
Group and Zavarovalnica Triglav
for more information).
The total business volume amounted to EUR 1.7 billion
, exceeding the target of approximately
EUR 1.6 billion. It was 1% lower than the previous year due to the termination of supplemental
health insurance in Slovenia. As a result of this termination, premium written in the Slovenian
market declined by 13%, whereas the international market recorded 21% growth and other
markets in the Adria region saw a 9% increase. Growth was achieved in most insurance markets
and across all business segments, except in Slovenia and Bosnia and Herzegovina, and in the
Health segment.
The combined ratio for the Group's Non-Life and Health segments
was a favourable
93.6%,
outperforming projections.
It decreased by 8.3 percentage points year-on-year due to an
improvement 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 and AM Best reaffirmed the Group's
"A" credit rating with
a stable medium-term outlook, which was upgraded to positive in December by S&P
Global.
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, stability and
sound performance. See Section
6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav
for more information.
41
4.6
The Triglav Group's plans for 2025
The year 2025 marks the first year of a new strategy period to 2030, during which the Triglav
Group has set high ambitions for profitable, safe and sustainable operations (see Section
4.2
Triglav Group Strategy for 2025–2030
for further information).
It is estimated that the Group's operations will be primarily influenced by macroeconomic
conditions, financial market developments, reinsurance cover, market situation and the
development of the potential of its markets. Under the projected conditions for the year,
earnings before tax
are expected to reach
EUR 130–150 million in 2025
(with
net earnings
ranging from
EUR 100 million to EUR 120 million
).
In the insurance business, the goal is to maintain a high level of profitability, with
the combined
ratio for the Non-Life and Health segments
remain
below 95%
.
The Group will expand its business volume, while diversifying and growing in markets outside
Slovenia, in alignment with strategic ambitions. The Group's
total business volume
is projected
to
exceed
EUR 1.8 billion in 2025
. In asset management, an increase in
assets under
management (AUM)
is planned.
Ambitious organic growth will be complemented by prudent
acquisitions.
The aim is to maintain the high
"A" credit rating
, reaffirming sound risk management and capital
adequacy
, while striving to remain
a stable, safe and profitable investment for investors
.
42
5.
Corporate Governance Statement
-
The three-line system, comprising corporate governance and the management of key
functions and business lines, plays a crucial role in the effective management and control of
subsidiaries.
-
The General Meeting of Shareholders approved the Remuneration Policy of Zavarovalnica
Triglav d.d.
-
The President of the Management Board, Andrej Slapar, along with Management Board
members Uroš Ivanc and Tadej Čoroli, commenced a new five-year term of office.
-
Barbara Nose and Rok Ponikvar were appointed new Supervisory Board members,
shareholder 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 Slovenian 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 published on the Ljubljana Stock
Exchange's website in Slovenian and English. Zavarovalnica Triglav's statement of compliance
with the Corporate Governance Code for 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
:
In addition to the Companies Act, the Company and its management and supervisory bodies
are subject to the Insurance Act, which requires 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. The
Diversity Policy requires that both genders are represented on the management and
supervisory bodies. The gender balance within the Company, appropriate to the size of its
bodies, objectives and influence on the selection procedures for members of the
management and supervisory bodies, as well as other Company procedures, is not
predetermined. Primarily, the fitness and propriety of the bodies as a whole must be
ensured, in accordance with strict legislative requirements mandating that both individual
members and the bodies collectively meet specific 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
43
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
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).
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, published on its website, 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.
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.
The most important documents (Articles of Association of Zavarovalnica Triglav d.d., the
Governance System and Policy of Zavarovalnica Triglav d.d. and similar) defining the governance,
controls and operating procedures are published at
https://www.triglav.eu/en/about-
us/zavarovalnica-triglav/documents
.
44
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
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 2024:
▪
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 2024 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 2024.
▪
Erste Group Bank AG - a fiduciary account, Vienna, holds 1,543,798 shares or 6.79% of the
Company's share capital, up 0.08 percentage points on the previous year.
45
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 2024
In 2024, the General Meeting of Shareholders of Zavarovalnica Triglav convened once, at the
49th General Meeting held on 4 June 2024. The total number of shares and voting rights
represented was 17,389,110 or 76.70% of all shares. The shareholders took note of the following
documents:
▪
Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2023, including the
independent auditor's report;
▪
Annual Internal Audit Report for 2023;
▪
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;
▪
opinion given by the Supervisory Board on the Annual Internal Audit Report for 2023.
The General Meeting of Shareholders approved the Remuneration Policy of Zavarovalnica Triglav
d.d. and adopted the Remuneration Report of Zavarovalnica Triglav d.d. for 2023.
The shareholders adopted a resolution on the following distribution of the accumulated profit
of EUR 87,854,038.93 as at 31 December 2023:
▪
A part of accumulated profit in the amount of EUR 39,786,509.00 shall be allocated for
dividend payments. The dividend of EUR 1.75 gross per share shall be paid to the
shareholders appearing in the share register as at 18 June 2024. As at 19 June 2024, 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 48,067,529.93 shall be decided
in the next few years.
The shareholders granted a discharge for the 2023 financial year to both the Management Board
and the Supervisory Board of Zavarovalnica Triglav.
Due to the expiry of Igor Stebernak's term of office and Jure Valjavec's resignation, Barbara Nose
and Rok Ponikvar 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.,
46
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. The members are
required to together 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 line with the Fit and Proper Policy for the Management and Supervisory Board Members of
Zavarovalnica Triglav d.d., a periodic fit and proper assessment was carried out in 2024 for
Management Board members Andrej Slapar, Marica Makoter, Blaž Jakič, Tadej Čoroli and Uroš
Ivanc, and the Management Board as a collective body, as well as an extraordinary assessment
of a Management Board member. All assessments confirmed that the Management Board
members were deemed fit and proper for their positions, and the Management Board as a
collective body was deemed 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,
while the proportion of the underrepresented gender among the members of the Company's
management and supervisory bodies has yet to be determined. The appointment of each
Management Board member considers their qualifications, experience and knowledge, as
outlined in the Fit and Proper Policy. 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. Once
the share of the underrepresented gender is determined, the Company will proceed with
implementing appropriate measures to achieve the desired balance. In 2024, the gender
representation ratio in the Management Board was last 4:1, with the underrepresented gender
accounting for 20%.
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 began 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 took office in July 2014. The new five-year term of office
of Uroš Ivanc commenced 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
47
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 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.
48
5.3.2.2
Presentation of the Management Board, its functioning and powers
Composition of the Management Board in 2024
First and last name
Function
Area of work in the Management Board
(as at 31 December 2024)
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
and
Corporate
Communication
Department). In charge of Corporate Accounts Division,
Non-Life Insurance Division, Triglav Group Subsidiary
Management
Division
(excluding
the
subsidiaries
outside Slovenia), Corporate and Legal Affairs Division
and Human Resource Management Division. Also
responsible for 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
r
esponsible
for
mergers
and
acquisitions (M&A), investor relations (IR) and relations
with
credit
rating
agencies,
as
well
as
for
environmental,
social
and
corporate
sustainable
development (ESG) activities.
14 July 2014
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 and risk
management
Trigal, upravljanje naložb in svetovalne
storitve d.o.o.*
Triglav INT d.o.o.
Tadej Čoroli
Member
In charge of 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.
Triglav, Upravljanje nepremičnin d.o.o. (from
19 June 2024)
Marica Makoter
Member and
Worker
Director
Represents the workers' interests as set out in the
Worker Participation in Management Act. In charge of
Change and Project Portfolio Management Department
and Back Office Division. Also responsible for the
Strategic Sourcing Department, Compliance Office and
Marketing
Department
(head
office
support
departments).
21 December
2011
23 December
2026
Female
Slovenian
1972
LL.B.
Management, strategic
management,
commercial law,
insurance, human
resources and
organisation, worker
representation
Triglav Skladi d.o.o.
Blaž Jakič
Member
In charge of Life Insurance Division, IT Division, Health
Insurance
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.
Triglav Skladi d.o.o.
Diagnostični center Vila Bogatin d.o.o., Bled
* A member of the company's advisory board.
Andrej Slapar took over the position of the President of the Management Board eleven years ago; in 2024 all members of the Management Board
together performed their function for an average of 8.75 years.
49
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. As at 31 December 2024, it consisted of
eight members, six shareholder representatives and two employee representatives.
The term of
office of the Supervisory Board members 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.
The term of office of Igor Stebernak, a Supervisory Board member, shareholder representative,
expired on 3 June 2024. The term of office of Jure Valjavec, a Supervisory Board member,
shareholder representative, expired on 1 September 2024 following his resignation. The General
Meeting of Shareholders appointed Barbara Nose and Rok Ponikvar as new Supervisory Board
members – shareholder representatives, with their four-year terms of office commencing on 4
June 2024 and 2 September 2024, respectively.
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 line with this policy, a fit and
proper assessment of the candidates for Supervisory Board members – shareholder
representatives and of the Supervisory Board as a collective body, taking into account the
candidates assessed, was carried out before the appointment of new members also in 2024. The
two newly appointed Supervisory Board members were assessed as fit and proper to perform
this function.
In October 2024, 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, Tomaž
Benčina, Monica Cramér Manhem, Tim Umberger, Rok Ponikvar, Barbara Nose, Aleš Košiček and
Janja Strmljan Čevnja. All individual members and the Supervisory Board as a collective body
were assessed as fit and proper.
In October 2024, 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
and/or auditing. It was established that he continues to be fit and proper to perform the duties
of the Audit Committee's external member.
In the same month, a preliminary fit and proper assessment was conducted for Katarina Sitar
Šuštar, the candidate for the new external member of the Audit Committee, an independent
expert qualified in accounting and/or auditing. The candidate was assessed as fit and proper to
perform this function.
50
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
(diversity in terms of gender, experience in international markets, etc.) is taken into account in
the appointment of new members. The 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. 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. Although the proportion of the underrepresented gender among
the members of the Company's management and supervisory bodies has yet to be determined,
appropriate measures are already being implemented to achieve diversity and gender balance.
These principles were also applied in nomination procedures for appointing new Supervisory
Board members in 2024, resulting in a gender representation ratio of 5:3, with the proportion of
the underrepresented gender increasing to 37.5% (25.0% in 2023).
5.3.3.1
Powers of the Supervisory Board
The powers and operation of the Supervisory board are set out by the applicable legislation, the
Company's Articles of Association and the Rules of Procedure of the Supervisory Board (available
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.
51
5.3.3.2
Supervisory Board in 2024
Composition of the Supervisory Board in 2024
First and last
name
Function
Start of term
of office
(the first)
End of term of
office
Attendance
of sessions
of the
Supervisory
Board /
total
number of
Supervisory
Board
sessions
Gender
Nationality
Year
of
birth
Education
Professional profile
Independence
pursuant to
the Slovenian
Corporate
Governance
Code
Existence
of conflict
of
interest
in 2024
Membership in
the supervisory
and/or
management
bodies of other
companies while
serving on the
Supervisory
Board in 2024
Membership in
Supervisory Board
committees
Function in
Supervisory Board
committees
Attendance of
meetings of
Supervisory
Board
committees /
total number
of meetings of
Supervisory
Board
committees
Andrej Andoljšek
Member
13 June 2017
13 June 2021
9 of 9
Male
Slovenian
1970
BSc in Economics
Financial and general
management, financial markets
and analyses, banking,
corporate governance, business
and financial restructuring of
companies
YES
NO
Sava d.d.
Strategy Committee
Nomination
Committee
Appointment and
Remuneration
Committee
Member
Chairman from
29 November
2023 to 3 June
2024
Member
3 of 3
5 of 5
/
7 of 7
Vice Chairman
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
Tim Umberger
Member
Vice Chairman
7 June 2023
10 July 2024
9 July 2027
7 June 2027
5 of 9
Male
Slovenian
1980
MSc in Economics
Financial markets and analyses
YES
NO
Gorenjska banka
d.d.
Audit Committee
Strategy Committee
Nomination
Committee
Appointment and
Remuneration
Committee
Member
Member until 17
September 2024
Chairman from 18
September 2024
Chairman from
19 November 2024
Member
6 of 6
2 of 3
/1
1 of 3
/
1 of 7
Barbara Nose
Member
4 June 2024
4 June 2029
3 of 9
Female
Slovenian
1964
BSc in Economics
Finance and insurance markets,
strategy and business model,
risk management, controlling,
accounting and audit, corporate
governance
YES
NO
Luka Koper d.d.
Pošta Slovenije
d.o.o.
Strategy Committee
Audit Committee
Risk Committee
Member
Chairwoman from
10 July 2024
Member
2 of 3
2 of 6
1 of 1
Tomaž Benčina
Member
14 June 2021
14 June 2025
9 of 9
Male
Slovenian
1965
BSc in Economics and
BSc in Metallurgy
Financial markets, business
strategy and business models,
governance system, financial
analyses
YES
NO
Luka Koper d.d.
Appointment and
Remuneration
Committee
Strategy Committee
Chairman
Member
7 of 7
3 of 3
Monica Cramér
Manhem
Member
7 June 2023
7 June 2027
5 of 9
Female
Swedish
1959
BSc in Economics
International regulatory and
other legal requirements,
financial and actuarial analyses
YES
NO
CCR Re, France
Sompo Int'l Lux
Strategy Committee
Risk Committee
Member
Chairwoman
3 of 3
1 of 1
Rok Ponikvar
Member
2 September
2024
2 September
2029
2 of 9
Male
Slovenian
1972
BSc in Economics
Financial markets, governance
system, financial analyses,
business strategy and business
models
YES
NO
Loterija Slovenije
d.d.
Strategy Committee
Risk Committee
Nomination
Committee
Member from 2
September 2024
Member from 2
September 2024
Member from 19
November 2024
2 of 3
1 of 1
/
Igor Stebernak
Chairman
Member
Vice Chairman
18 August
2016
3 June 2020
30 August
2023
2 June 2020
3 June 2024
3 June 2024
5 of 9
Male
Slovenian
1968
BSc in Electrical
Engineering, MBA
Banking, insurance, strategic
management, financial markets
and analyses, controlling,
accounting and business process
reengineering
YES
NO
/
Audit Committee
Strategy Committee
Member
Chairman from
3 June 2024
Member until 3
June 2023
3 of 6
1 of 3
52
External members of Supervisory Board committees in 2024
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 2024
Luka Kumer
Audit Committee Until
19 November 2024
7 of 7
Male
Slovenian
BSc in Economics
1981
Financial markets, business strategy and
business models, governance system,
financial analyses
/
Mateja Lovšin Herič
Nomination Committee
Until 6 June 2024
From 28 November
2024
5 of 5
/
Female
Slovenian
BSc in Economics
1969
Corporate governance and finance
Istrabenz turizem d.d., Koto d.o.o.
Katarina Sitar Šuštar
Audit Committee
From 19 November
2024
/
Female
Slovenian
MSc in Business
1971
Certified auditor, audit of various legal
entities, insurance
The audit committees of the supervisory
boards of Pošta Slovenije d.o.o., and
University of Ljubljana
First and last
name
Function
Start of term
of office
(the first)
End of term of
office
Attendance
of sessions
of the
Supervisory
Board /
total
number of
Supervisory
Board
sessions
Gender
Nationality
Year
of
birth
Education
Professional profile
Independence
pursuant to
the Slovenian
Corporate
Governance
Code
Existence
of conflict
of
interest
in 2024
Membership in
the supervisory
and/or
management
bodies of other
companies while
serving on the
Supervisory
Board in 2024
Membership in
Supervisory Board
committees
Function in
Supervisory Board
committees
Attendance of
meetings of
Supervisory
Board
committees /
total number
of meetings of
Supervisory
Board
committees
Jure Valjavec
Member
14 June 2021
1 September
2024
9 of 9
Male
Slovenian
1975
Master of Science
Business strategy and business
models, governance system
YES
NO
/
Appointment and
Remuneration
Committee
Nomination
Committee
Strategy Committee
Member until 1
September 2024
Member from 29
November 2023 to
3 June 2024
Chairman until 1
September 2023
5 of 7
novanja in
prejemke
5 of 5
1 of 3
Aleš Košiček
Member
11 July 2023
10 July 2027
4 of 9
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
NO
/
Audit Committee
Nomination
Committee
Appointment and
Remuneration
Committee
Strategy Committee
Member
Member until 3
June 2024
Member from 19
November 2024
Member from 2
September 2024
Member from 18
September 2024
6 of 6
5 of 5
/
prejemke
1 of 7
1 of 7
Janja Strmljan
Čevnja
Member
11 July 2023
10 July 2027
4 of 9
Female
Slovenian
1969
LL.B.
Regulatory and other legal
requirements that apply to
Zavarovalnica Triglav
YES
NO
/
Strategy Committee
Risk Committee
Member
Member
3 of 3
1 of 1
53
By signing the Statement of Independence and Loyalty, 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. The statement is available on the company's website. 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 the Supervisory Board committees and their activities in 2024
In 2024, the Company had the following committees: the Audit Committee, the Appointment
and Remuneration Committee, the Strategy Committee and the newly established Risk
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.
54
The Supervisory Board committees and their main tasks
Supervisory Board
Audit Committee
▪
Monitors the financial reporting
and
sustainability reporting process and draws
up reports and proposals for ensuring its
integrity
▪
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;
▪
Reviews and monitors the independence
of the auditor for the Company's annual
report, particularly regarding the provision
of additional non-audit services;
▪
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.
▪
Monitors the Company's annual
compliance reports and reports on
contracts with audit firms and firms in
their networks
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.
Risk Committee
▪
Monitors the functioning and
adequacy of the risk management
system;
▪
Advises the Supervisory Board on the
Company's overall current and future
risk appetite and on its risk
management strategy;
▪
Oversees the implementation of
capital and material risk management
strategies;
▪
Reviews key internal documents and
other risk management documents
submitted to, noted by or approved by
the Supervisory Board;
▪
Reviews the annual Solvency II capital
adequacy calculation reports, the
Solvency and Financial Condition
Reports (SFCR) of the Company and
the Group, the own risk and solvency
assessment report, the regular risk
profile reports of the Company and
the Group, and any other reports
related to risk management;
▪
Supervises disclosures and examines
the credit rating agencies' reports for
the year.
55
As at 31 December 2024,
the Audit Committee
was composed of
Barbara Nose as chair and Tim
Umberger, Aleš Košiček and Katarina Sitar Šuštar, an independent external expert, as members.
As at 31 December 2024,
the Appointment and Remuneration Committee
was composed of
Tomaž Benčina as chair and Andrej Andoljšek, Tim Umberger and Aleš Košiček as members.
As at 31 December 2024,
the Strategy Committee
was composed of Tim Umberger as chair and
Tomaž Benčina, Andrej Andoljšek, Monica Cramér Manhem, Barbara Nose, Rok Ponikvar, Aleš
Košiček and Janja Strmljan Čevnja as members.
The Risk Committee
was established by the Supervisory Board during its session on 21 August
2024 and, as of 31 December 2024, comprised the following members:
Monica Cramér Manhem
as chair and Barbara Nose, Janja Strmljan Čevnja and Rok Ponikvar as members.
The Nomination Committee
operates as an ad hoc committee. It was established on 19
November 2024 due to the expiry of the term of office of Supervisory Board members Andrej
Andoljšek and Tomaž Benčina in 2025. The Committee will operate until the election of new
Supervisory Board members, shareholder representatives, at the General Meeting of
Shareholders, but not later than 3 June 2025. It is composed of Tim Umberger as chair, Rok
Ponikvar and Aleš Košiček as members, and Mateja Lovšin Herič as an external member.
See
Section 5.3.3.2 Supervisory Board in 2024
for more information about the structure of
Supervisory Board committees.
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, the resolutions passed by their
general meetings and their management and supervisory bodies, business cooperation
agreements (where applicable) and other adopted internal documents.
The Governance Policy of the Triglav Group's Subsidiaries
(hereinafter: the Policy) sets out the
main guidelines for the governance of subsidiaries, taking into account the Group's long-term
objectives, values and strategy. It was
updated
in
May 2024
.
The systemic governance of subsidiaries, as set out by the Policy, is implemented through
general meetings, supervisory and management bodies of each subsidiary and by applying
standardised and unified key rules and procedures in the areas of expertise. These rules apply to
key risk management, compliance, internal audit and actuarial functions of the subsidiaries,
with their implementation aimed at achieving common minimum standards for core business
performance, effective governance, reporting and control at Group level.
The updated Policy assigns a crucial role to
the three-line governance system
in the effective
management and control of subsidiaries. The Triglav Group Subsidiary Management Division,
key functions, relevant departments and business segments of the parent company are
responsible 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.
The three-line governance system supports a clear separation of powers, responsibilities and
effective risk management. At the same time, it ensures that business activities align with the
56
Group's corporate objectives and strategy for harmonious and synergistic operations. The three-
line governance system of subsidiaries includes:
▪
Corporate governance:
It forms part of the first line and involves the active exercise of
management rights by the parent company or its subsidiary as a parent company, in
compliance with the legislation applicable to each subsidiary and its internal regulations.
An essential part of corporate governance is maintaining an effective dialogue between the
Company and its subsidiaries to achieve common goals.
▪
Key function management:
The second line comprises the parent company's key functions
– risk management, compliance, internal audit and actuarial – which support the business
lines in achieving their business objectives. They also ensure that risks within the Company
and the Group, including potential risks, are identified, assessed, monitored and managed
in accordance with applicable legislation and internal regulations. They operate
independently of the business lines to ensure objective risk assessment and control.
▪
Business line management:
The third line consists of the parent company's business lines,
which are responsible for managing business activities at Group level.
Zavarovalnica Triglav adheres to the principle of top-down governance, which is fundamental to
all aspects of governance, strategy and operational decision-making within the Company and its
subsidiaries. This approach ensures that management directions, policies and strategic
objectives are established at the highest level and consistently communicated and implemented
across all levels.
The Policy clearly defines the governance powers of the parent company over its subsidiaries,
the process for identifying risk escalation, and the powers and responsibilities of Group
subsidiaries. It also establishes the foundation for the Remuneration Policy applicable to
members of supervisory and management bodies of subsidiaries, outlines the framework for
transactions between the parent company and subsidiaries, and specifies the subsidiaries'
reporting system.
57
The subsidiary governance system is designed so that Zavarovalnica Triglav, as the parent
company, manages its direct subsidiaries. Accordingly, its direct subsidiaries assume
responsibility for transferring the governance system to their own subsidiaries and actively
managing them. The expected objectives of the system transfer and the implementation of the
activities are further detailed in the
Minimum Standards of Zavarovalnica Triglav d.d. for the
Operations of Subsidiaries
(hereinafter: the Minimum Standards). These standards outline the
basic and key requirements for ensuring the efficient and consistent operation of all Group
members, irrespective of their geographical location or specific activities. The purpose of the
Minimum Standards is to align all Group subsidiaries with the Group's objectives, values and
strategy, while respecting local legislation and accounting for market specificities. The Policy
defines the procedures for preparing, monitoring, implementing, enforcing and updating the
Minimum Standards, outlines the responsibilities of the relevant departments of the parent
company and the management of the subsidiaries, and specifies the actions to be taken in the
event of deviations from the Minimum Standards. The Minimum Standards are regularly
updated. The relevant business segments of the parent company monitor the implementation
of the Minimum Standards insubsidiaries, thereby achieving integration between the
subsidiaries' and Zavarovalnica Triglav's business functions and ensuring a comprehensive
overview at the Group level.
The Company has in place and is implementing a robust and reliable governance system for the
Triglav Group, which is compliant with statutory requirements and comparable to other
insurance groups.
The composition of management and supervisory bodies as at 31 December 2024
Subsidiary
Management
Supervisory function
Slovenia
Pozavarovalnica Triglav Re d.d., Ljubljana
Gregor Stražar – President
Supervisory Board:
Tomaž Rotar – Member
Tadej Čoroli – Chairman
Maja Omahen Petrič – Member
Katja Modec, Janko Šemrov
Triglav, pokojninska družba d.d., Ljubljana
Aljoša Uršič – President
Supervisory Board:
Peter Krassnig – Member
Blaž Jakič – Chairman
Vida Šeme Hočevar – Member
Blaž Kmetec, Miha Grilec,
Miran Kalčič, Vesna Vodopivec,
Borut Simonič, Helena Lokar
Triglav Skladi, družba za upravljanje d.o.o.,
Benjamin Jošar – President
Supervisory Board:
Ljubljana
Andrej Petek – Member
Blaž Jakič – Chairman
Miha Grilec – Member
Jaka Kirn, Damir Verdev, Marica Makoter,
Barbara Gorjup, Damjan Kralj
Triglav INT, holdinška družba d.o.o.,
Tedo Djekanović – Director
Supervisory Board:
Ljubljana
Uroš Ivanc – Chairman
Nataša Veselinović (resigned), Saša Kovačić
Triglav, Upravljanje nepremičnin d.o.o.,
Rok Pivk – Director
Supervisory Board:
Ljubljana
Tadej Čoroli – Chairman
Ksenija Zajc, Nataša Novak Priveršek
Triglav Svetovanje, zavarovalno
Tomaž Dvořak – Director
Supervisory Board:
zastopanje d.o.o., Domžale
Maja Benko – Chairwoman
Jana Polda, Matjaž Novak, Lidija Breznik
Triglav Avtoservis d.o.o., Ljubljana
Janez Obaha – Director
Supervisory Board:
Mladen Jug – Director
Matej Ferlan – Chairman
Nataša Novak Priveršek, Jaka Klement
58
Subsidiary
Management
Supervisory function
Croatia
Triglav Osiguranje d.d., Zagreb
Vilma Učeta Duzlevska – President
Supervisory Board:
Darko Popovski – Member
Tedo Djekanović – Chairman
Lidija Pecigoš Višnjić – Member
Gorazd Jenko,
Alenka Vrhovnik Težak,
Pave Srezović-Pušić
Serbia
Triglav Osiguranje a.d.o., Belgrade
Dragan Marković – President of the Executive
Committee
Supervisory Board:
Tedo Djekanović – Chairman
Ivan Grujić – Member of the Executive
Committee
Fejsal Hrustanović, Vuk Šušić,
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 Gorinšek, Mateja Geržina
Lovćen životna osiguranja a.d., Podgorica
Zorka Milić – Executive Director
Board of Directors:
Ljubica Kovačević – Chairwoman
Slobodanka Vukadinović, Danilo Pavličić
Bosnia and Herzegovina
Triglav Osiguranje d.d., Sarajevo
Edib Galijatović – President
Supervisory Board:
Emir Krivošija – Member
Tedo Djekanović – Chairman
Simon Vidmar, Janko Šemrov,
Ivica Vulić, Robert Trnovec
Triglav Osiguranje a.d., Banja Luka
Janez Rožmarin – Director
Management Board:
Biljana Grahovac – Member of the Executive
Committee
Midhad 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 – President
Rok Pivk, Blaž Kmetec, Andraž Rangus
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.
59
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 complies with 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.
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 by the Group at all levels. Accounting controls are based on the
principles of 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.
60
5.8
Disclosure of existence of any agreements or authorisations regarding shares or voting
right
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
61
6.
The share and shareholders of Zavarovalnica Triglav
-
Zavarovalnica Triglav's share achieved a total return of 21.0%.
-
The Triglav Group received an "A" credit rating for the ninth consecutive time, with S&P
upgrading its medium-term outlook from stable to positive.
-
There were no significant changes in Zavarovalnica Triglav's shareholder structure. The
share of international shareholders slightly increased and the share of retail shareholders
continued to grow.
-
Zavarovalnica Triglav issued a subordinated bond in July 2024.
6.1
Share of Zavarovalnica Triglav
Zavarovalnica Triglav's share (ZVTG) is listed on the Ljubljana Stock Exchange Prime Market and
has been traded on the stock exchange market since the end of 2008. Its
total annual return
in
2024 was
21.0%
and the dividend yield was 4.3%. As at 31 December 2024, the price-to-book
ratio (P/B) was 0.90, while the price-to-earnings ratio (P/E) was 8.13.
With a market capitalisation of EUR 920.8 million, Zavarovalnica Triglav was
the fourth largest
Slovenian listed company
in 2024, its ZVTG share being one of the most liquid shares on the
Ljubljana Stock Exchange. The ZVTG share turnover (excluding block trades) reached EUR 24.4
million, remaining at the same level as the previous year. A third of ZVTG share turnover was
carried out by
the liquidity provider
, which has rendered its services since 2019.
Key figures relating to the ZVTG share (EUR)
Items
2024
2023
Maximum closing price
41.40
40.30
Minimum closing price
33.60
29.20
Closing price as at 31 December
40.50
34.70
Book value per share (parent company)*
32.62
30.02
Book value per share (consolidated data)
43.50
39.19
Net earnings per share (consolidated data)
5.76
0.71
Market capitalisation as at 31 December
920,773,494
788,909,636
Average daily turnover (excluding block trades)
98,980
102,764
Dividend per share
1.75
2.50
Number of shares
22,735,148
22,735,148
Percentage of free float
30.6%
30.7%
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)
S&P Global: »A«, positive
medium-term outlook
»A«, stable medium-term
outlook
AM Best: »A«, stable
medium-term outlook
* The effects of the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav on 1 October 2024 are explained in more detail in Section
2.7 Merger of the subsidiary
Triglav, Zdravstvena zavarovalnica
in the Accounting Report.
62
Movement in the ZVTG share price in 2024 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 2023 = 100)
Movement in the ZVTG share price (left axis) and turnover (right axis) in EUR in 2024 (the baseline
date: 31 December 2023 = EUR 34.70)
In the first half of the year,
the ZVTG share price
was still influenced by the lower results of the
previous year but later gained momentum due to promising half-year and nine-month results,
as well as an improved annual profit guidance. The Company paid dividends to shareholders in
June, with 17 June 2024 being the cut-off date (see Sections
5.3.1 General Meeting of
Shareholders
and
6.4 Dividends and the dividend policy
for more information). On an annual basis,
the ZVTG share price increased by 17%, in line with the growth of the STOXX Europe 600
Insurance index for European insurance companies. The Ljubljana Stock Exchange SBITOP index,
in which the ZVTG share holds a 9.0% share, rose by 33%.
90%
100%
110%
120%
130%
140%
Value in %
ZVTG
SBITOP Index
STOXX Europe 600 Insurance Index
0
80
160
240
320
400
480
560
640
720
800
33
34
35
36
37
38
39
40
41
42
Turnover in EUR thousand
ZVTG price in EUR
ZVTG turnover
ZVTG closing price
118%
133%
117%
40.50
63
6.2
Equity
As at 31 December 2024, Zavarovalnica Triglav's
share capital
remained unchanged and
amounted to EUR 73,701,391.79 compared to the previous year. 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%;
▪
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.
64
6.3
Shareholder structure
There were no significant changes to Zavarovalnica Triglav's shareholder structure in 2024.
The
Company's top ten shareholders held a 76.8% stake, up by 1 percentage points relative to 31
December 2023. Among the shareholders holding a stake of more than 5% are two funds owned
by the Republic of Slovenia (ZPIZ Slovenije and SDH d.d.) and the Croatian pension fund, which
is listed in the Company's share register under the fiduciary account of its custodian bank.
The Company's
free float
, representing shares held by shareholders with less than a 5%
participating interest, stood at 30.6% (2023: 30.7%). As at 31 December 2024, the ownership of
the free float was dispersed among 8,218 shareholders from 30 countries. Among them were
approximately 40 international banks with fiduciary accounts held on behalf of their clients, as
well as international institutional investors
, primarily from Europe and the USA. International
shareholders held a 15.9% stake (0.3 percentage points more than the year before), while the
share of
Slovenian institutional shareholders
stood at 7.8% (0.5 percentage points less).
In recent years, Slovenian
retail shareholding
has gradually increased. This
trend
continued in
2024, with their stake increasing by 0.2 percentage points to 13.7%. Slovenian retail investors
actively traded the ZVTG share, with targeted investor relations activities promoting this
engagement.
Zavarovalnica Triglav’s shareholder structure as at 31 December 2024
Source: Centralna klirinško depotna družba
62.6%
15.9%
13.7%
7.8%
Two funds owned by the Republic of Slovenia
International shareholders
Retail investors
Slovenian institutional shareholders
65
Zavarovalnica Triglav’s top ten shareholders as at 31 December 2024
Source: Centralna klirinško depotna družba
The minority shareholder structure of Zavarovalnica Triglav by the country of origin as at 31
December 2024 (the share of the free float in %)
In 2024, ZVTG shares were bought by President of the Management Board Andrej Slapar and
Management Board members Uroš Ivanc and Tadej Čoroli.
0.38%
0.51%
0.60%
0.71%
1.02%
1.88%
2.31%
6.79%
28.09%
34.47%
Miljana Excitement, Croatia
Intercapital Securities Ltd., Croatia - fiduciary account
OTP Banka, Croatia - fiduciary account
Clearstream Banking AG Germany
Hrvatska poštanska banka, Croatia – fiduciary account
Citibank, Great Britain – fiduciary account
Unicredit Bank Austria, Austria – fiduciary account
Erste Group Bank, Austria – fiduciary account
SDH, Slovenia
ZPIZ Slovenije, Slovenia
Ownership in %
From other 20 countries: 0.4%
Bosnia and Herzegovina: 0.2%
UAE: 0.4%
Sweeden: 0.4%
Czech Republic: 0.5%
USA: 1.4%
Germany: 2.3%
Great Britain: 6.3%
Austria: 7.7%
Croatia: 10.3%
Slovenia: 70.2%
66
The number of shares held by the members of the Management and Supervisory Boards as at 31
December 2024
First and last name
Function
Number of shares
Participating
interest
Andrej Slapar
President
1,800
0.01%
Uroš Ivanc
Member
1,042
0.00%
Tadej Čoroli
Member
750
0.00%
Marica Makoter
Member
150
0.00%
Blaž Jakič
Member
2,864
0.01%
Management Board
6,606
0.03%
Supervisory Board
0
0.00%
Total Management Board and Supervisory Board
6,606
0.03%
6.4
Dividends and dividend policy
At Zavarovalnica Triglav,
the dividend policy
is regarded as a firm commitment to its
shareholders. The Company strives to implement its dividend policy consistently, thereby
fulfilling shareholders' expectations of the ZVTG share as a stable, safe and profitable long-term
investment.
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
.
As seen from the figure below, the implementation of the dividend policy over the last five years
has been influenced by specific circumstances, primarily due to the COVID-19 pandemic and one-
off negative events that impacted the Group's results. The Management Board and the
Supervisory Board took these circumstances into account when proposing the distribution of
accumulated profit for the year, while the General Meeting of Shareholders supported their
proposals every year. In
2024
, the Company paid a total dividend amount that far exceeded the
Group's 2023 earnings (see Section
5.3.1 General Meeting of Shareholders
). In doing so, it pursued
the objectives of the dividend policy and its consistency, considering the unique circumstances
in which the Group operated in 2023 and the improved outlook for 2024.
67
Gross dividend per share by year (EUR), its share of consolidated net profit for the preceding year
for the dividend payment and the dividend yield in 2013–2024
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 in both
Slovenian and English on the SEOnet information system of the Ljubljana Stock Exchange and
on the Company's website (
www.triglav.eu
), which was upgraded in 2024 to further improve the
clarity, quality and accessibility of key information for investors. In 2024, efforts were also
focused on improving the external analytical basis for the ZVTG valuation.
Open and constructive relationships with shareholders, investors and analysts are maintained
through videoconferencing meetings, conference calls and email communication.
A calendar of
the 12 investor events attended or organised in 2024
, along with the presentations, is available
on the Company's website (
www.triglav.eu
). Four of these events were organised for
international and Slovenian institutional investors following the announcement of business
results. Special attention is given to
retail investors
. In 2024, the share was presented to them at
three dedicated events.
Furthermore, the Company seeks to achieve the highest possible
participation in general
meetings of shareholders
. In 2024, 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).
Shareholders, investors and analysts can direct their inquiries to the contact details provided
below.
2.00
1.70
2.50
2.50
2.50
2.50
2.50
0,00
1.70
3.70
2.50
1.75
63%
56%
67%
64%
69%
82%
70%
0%
53%
74%
51%
247%
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
0%
50%
100%
150%
200%
250%
300%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Gross dividend per share (in EUR)
% of consolidated net profit for the previous year
10.5%
8.7%
10.8%
7.5%
8.3%
10.6%
0.0%
4.6%
10.7%
7.2%
4.3%
Dividend yield
7.2%
68
Information for shareholders and investors:
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 (hereinafter: S&P) and AM Best. In 2024, the Group was again assigned
an "A" stand-
alone credit rating
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.
Both rating agencies gave a stable medium-term outlook, but in December 2024,
S&P upgraded
its outlook from stable to positive.
The upgrade reflects the agency's expectation that the Triglav
Group will continue to perform well in a positive business environment, sustain its strong
capitalisation, expand operations in markets outside Slovenia, and retain its leading position in
the Slovenian insurance market.
The agency assessed the Group's strategy to 2030 as ambitious
in terms of profitability, growth and further diversification of its operations. In addition, the
Group aims to maintain its robust capital position and implement balanced dividend policy.
Credit ratings of Zavarovalnica Triglav since 2008
Year
Credit rating
Medium-term outlook
Rating agency
2024
A
Positive
S&P Global
Stable
AM Best
Stable
S&P Global
2023
A
Stable
AM Best
S&P Global
2022
A
Stable
AM Best
S&P Global
2021
A
Stable
AM Best
S&P Global
2020
A
Stable
AM Best
S&P Global
2019
A
Stable
AM Best
S&P Global
2018
A
Stable
AM Best
S&P Global
2017
A
Stable
AM Best
S&P Global
2016
A
Stable
AM Best
S&P Global
2015
A-
Positive
AM Best
S&P Global
2014
A-
Positive
AM Best
Stable
S&P Global
2013
A-
Stable
S&P Global
69
Year
Credit rating
Medium-term outlook
Rating agency
Stable
AM Best
BBB+
Positive
S&P Global
2012
A-
Negative
S&P Global
2011
A
Negative
S&P Global
2010
A
Stable
S&P Global
2009
A
Stable
S&P Global
2008
A
Stable
S&P Global
The latest credit rating reports of the credit rating agencies from 2024, are available on the
website
www.triglav.eu
under the Investor Relations tab.
6.7
Bonds
In July 2024, Zavarovalnica Triglav issued a 20.5-year subordinated bond (Tier 2 under Solvency
II), callable after 10.5 years as part of the Triglav Group's regular capital management activities.
The total issue size of the bond was EUR 100 million, with a yield of 6.75%. The success of this
issue further confirms the high level of confidence that institutional investors have in the Group.
Zavarovalnica Triglav issued two subordinate bonds, which are included in own funds for the
purpose of calculating capital adequacy under Solvency II. The first bond was issued in 2019. See
the table below for more information.
Bond of Zavarovalnica Triglav
ISIN
XS1980276858
XS2848005166
Type
Subordinated bond (Tier 2 pursuant to the
Solvency II regulations)
Subordinated bond (Tier 2 pursuant to the
Solvency II regulations)
Issue size in EUR
50,000,000
100,000,000
Currency
EUR
EUR
Coupon rate and payment
Fixed at 4.375% annually until first call date,
payable annually
Fixed at 6.70% annually until first call date,
payable annually
Thereafter variable at 3-month Euribor plus
4.845% (equal to the original initial credit
spread + 1 percentage point), payable quarterly
Thereafter variable at 3-month Euribor plus
4.937% (equal to the original initial credit
spread + 1 percentage point), payable quarterly
First call date
22 October 2029
16 January 2035
Maturity date
22 October 2049
16 January 2045
Maturity in years
30.5
20.5
Regulated market
Luxembourg Stock Exchange
Luxembourg Stock Exchange
Issue rating
BBB+ (S&P)
BBB+ (S&P)
70
7.
Macroeconomic environment and market trends
-
The favourable financial market situation had a positive impact on the growth of financial
investments, assets under management and the investment result.
-
The Triglav Group maintained its leading market position among insurance groups in
Slovenia and Montenegro, while strengthening its market share in the Slovenian, Serbian
and Macedonian insurance markets.
-
Total written premium increased across most insurance markets.
7.1
The general economic environment worldwide and in Slovenia
In 2024, the global economy was marked by moderate and declining economic growth,
accompanied by uncertainties arising from factors such as the armed conflict in the broader
Middle East and the ongoing war between Russia and Ukraine. In early June, the European
Parliament elections created political uncertainty in France, while in the US, the presidential
elections and the November announcement of tariff increases by the newly elected
administration added to the uncertainty in the second half of the year. Inflationary pressures
eased gradually throughout the year.
According to the latest estimates by international institutions, the US recorded strong real GDP
growth, while the euro area saw weak growth. Growth in the US was driven by robust private
consumption, whereas in the euro area, it was constrained by reduced investment spending and
slower growth in other GDP components. The economic outlook worsened in the second half of
the year. This is especially evident in the euro area, where the Purchasing Managers' Index (PMI)
for services fell to near stagnation, while the manufacturing PMI, in contraction for over two
years, dropped further towards the year's end, in contrast to trends observed in the US. Despite
these challenges, according to Eurostat's initial estimate, the euro area unemployment rate fell
to 6.3% in November, its lowest level since the introduction of the euro, while year-on-year
headline inflation remained at just 2.4% in December.
Slovenia's macroeconomic situation mirrored those of the euro area, with moderate private
consumption
growth
and
declining
investment
spending.
Slower
export
recovery
in
international trade negatively impacted overall GDP growth. Although the unemployment rate
began to rise during the year, it remained significantly below the euro area average. According
to Eurostat, inflation stood at 5.2% in November, with Slovenia's year-on-year inflation
estimated at 2.0% in December.
The latest forecasts from international institutions indicate gradual but slowing economic
growth in the euro area, with headline inflation projected to remain around 2%, despite ongoing
domestic inflationary pressures. According to the European Central Bank's (ECB) December
forecast, the 20 euro area countries are expected to experience below-trend real GDP growth of
0.7% in 2024 and 1.1% in 2025, with headline inflation easing to 2.4% and 2.1%, respectively.
In its December forecast for 2024, the Bank of Slovenia projected modest real GDP growth for
Slovenia at only 1.4%, with potential strengthening to 2.2% in 2025. Headline inflation is
expected to align closely with the euro area, at 2.0% in 2024 and 2.2% in 2025. The outlook is
accompanied by risks, primarily stemming from geopolitical uncertainties and potential
protectionist measures in international trade.
Financial markets were affected by uncertainty surrounding the timing and pace of major central
banks' easing of austerity measures. In June, the ECB responded to a deteriorating economic
outlook by reducing the deposit rate by 0.25 percentage points, the first such cut in the year.
71
Subsequently, it implemented three additional cuts of the same magnitude, bringing the rate to
3.0%. Similarly, the US Federal Reserve (Fed) initiated its first rate cut in September, lowering its
key interest rate by 0.5 percentage points, followed by two further reductions of 0.25 percentage
points each, ending the year at 4.25–4.50%. Representatives of both banks repeatedly
emphasised that their decisions would be guided by future macroeconomic data releases,
avoiding any commitment to a predetermined monetary policy direction. However, in
December, the chair of the Federal Reserve cautioned that the decline in US inflation was
progressing too slowly.
Bond markets experienced a rise in required yields in the first half of the year, followed by a
decline in the second half, accompanied by considerable volatility. Over the reporting period, the
required yield on Germany's 10-year government bond increased by 0.34 percentage points,
reaching 2.36%. After nearly two years, the spread between the required yields on the 10-year
and 2-year German Bund turned positive, closing the year at 0.29 percentage points. The
required yield on Slovenia's 10-year government bond remained largely unchanged throughout
the year, finishing at 3.03%. Other euro area government bonds exhibited similar trends in
required yields. Political uncertainty contributed to a significant rise in French government bond
yields, which ended the year at 3.19%. In contrast, the improved economic outlook led to a
notable decrease in Croatian and Italian bond yields, which closed the year at 3.03% and 3.52%,
respectively.
Corporate bond markets and equity markets, in particular, reflected a markedly positive investor
sentiment. Among the fastest-growing global equity indices, the US S&P 500 saw a 23.3% rise,
mainly driven by technology stocks. The Japanese NIKKEI and the German DAX followed, with
gains of 19.2% and 18.8%, respectively. The Chinese Hang Seng (17.7%) and the European Euro
Stoxx 50 (8.3%) showed slightly smaller increases. In 2024, the Slovenian SBITOP index also
experienced a strong growth of 33.0%.
7.2
Environmental impact on the Triglav Group's operations
1
The Group's business result was impacted by major CAT events in a total estimated value of EUR
45.5 million (2023: EUR 212.2 million). Hailstorms resulted in EUR 28.8 million in claims in
Slovenia and a total of EUR 0.5 million in claims in Croatia and Serbia. The Group's estimated
reinsurance claims totalled EUR 16.2 million due to the earthquake in Taiwan, the June floods
and other weather events in Germany, Italy, Switzerland and Austria, the unrest in New
Caledonia, Hurricane Beryl in the Caribbean, the September floods in Central Europe caused by
Cyclone Boris, Typhoon Yagi in Vietnam and China, and the December storms in Western Europe,
Greece and Cyprus, and the earthquake in Vanuatu. The net effect of these CAT events amounted
to EUR 41.0 million.
The favourable financial market situation had a positive impact on the growth of financial
investments, assets under management and the investment result. Inflation continued to have
an impact on the increase of prices of materials and services and therefore on higher claims paid
and operating expenses.
1
GRI 201-2, SASB: FN-IN-450a.2.
72
7.3
Global insurance market
According to latest official data from Swiss Re reinsurance company, total premium volume in
the global insurance market
reached USD 7.2 trillion in 2023, recording
a 2.8% growth in real
terms
year-on-year (6.1% nominal growth). Non-life insurance premium rose by 3.9%, while life
insurance premium increased by 1.3%. Advanced markets accounted for 81% of global insurance
premiums, achieving 2.0% premium growth, while emerging markets grew by 6.6%. The written
premium in the euro area declined by 1.1% in real terms compared to the previous year.
The US holds the largest and growing share of the global insurance market at 44.9% (2022:
44.1%), followed by China (10.1%), the UK (5.2%), Japan (5.0%) and the EU markets, France (3.9%)
and Germany (3.4%).
Global economic growth, rising real incomes as inflation moderates and higher interest rates are
driving demand for insurance. Swiss Re estimates that global premiums will grow by 3.2% in
2024, with higher interest rates particularly boosting demand for life insurance (savings
products). In non-life insurance, inflationary pressures have pushed up premium rates in recent
years and thus the real growth in global premiums in 2023 (3.9%). Lower inflation will have a
positive impact on claims payments. Swiss Re forecasts global premium growth of 2.6% in 2025,
with slightly higher growth in life insurance.
Real global premium growth in 2022–2025
Source: Swiss RE, SIGMA 3/2024
7.4
Triglav Group's key insurance 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 insurance market in the Adria region is Slovenia, where Zavarovalnica
Triglav operates, and to which the specialised insurer Triglav, Zdravstvena zavarovalnica merged
on 1 October 2024. In other markets across the region, compulsory insurance (motor vehicle
liability insurance) continues to dominate, while the most notable growth in non-compulsory
insuranc is seen in health insurance. Pozavarovalnica Triglav Re operates throughout the region
and in the wider international environment.
-0.8%
0.8%
-3.8%
2.8%
3.9%
1.3%
3.2%
3.3%
2.9%
2.6%
2.6%
2.7%
Total
Non-Life insurance
Life insurance
2022
2023
2024 estimate
2025 forecast
73
The Group increased gross written premium in all insurance markets in the region, except in
Slovenia, where supplemental health insurance was terminated at the end of 2023, and in
Bosnia and Herzegovina, where ownership consolidation and business optimisation are
ongoing. The highest relative premium growth was achieved in the Serbian, North Macedonian
and Montenegrin insurance markets (see Section
8. Operations of the Triglav Group and
Zavarovalnica Triglav
for more information).
Main macroeconomic data for 2024 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
1.8
447.6
GDP growth (estimate, in %)
1.5
3.4
3.9
3.7
2.5
2.2
1.1
2024 GDP (estimate, in USD billion)
73.2
89.7
82.6
8.1
28.4
15.9
19,403.2
2024 GDP per capita (estimate, in USD)
34,544
23,380
12,514
12,802
8,221
8,659
62,659.6
2024 inflation rate (estimate, in %)
2.0
4.0
4.5
4.2
2.2
3.3
2.6
2024 unemployment rate (estimate, in %)
3.5
5.6
9.1
11.0*
13.2
13.0
n.a.
Source: International Monetary Fund (IMF), World Economic Outlook, October 2024, *Agency for Statistics of Montenegro (Q3 2024)
The Triglav Group continues to be the leader among insurance groups in Slovenia and
Montenegro, and ranks third in North Macedonia. Its market share grew in Slovenia, Serbia and
North Macedonia.
Market shares and market position of the Triglav Group in the Adria region in 2024
Market
Market share
Market share trend
Ranked in 2024
Ranked in 2023
Slovenia
40.8 %
+ 1.3 percentage point
1
1
Croatia**
4.8 %
– 0.4 percentage point
8
8
Serbia*
7.7 %
+ 0.2 percentage point
5
5
Montenegro
34.6 %
– 0.4 percentage point
1
1
Bosnia and Herzegovina
8.3 %
– 1.0 percentage point
5
4
- Federation of BiH
9.7 %
– 0.9 percentage point
4
3
- Republic of Srbska***
5.5 %
– 1.1 percentage point
8
5
North Macedonia
13.8 %
+ 0.4 percentage point
3
3
* Data for January–September 2024.
** 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
According to Swiss Re's latest available data, Slovenia's well-developed insurance market ranked
30th globally in 2022 in terms of premium per capita (32nd the previous year) and 29th in terms
of insurance penetration (premium as a % of GDP), two places higher than the year before. In
2023, it represented 0.3% of the euro area market, where the premium per capita (insurance
density) stood at EUR 2,327 (2022: EUR 2,256) and the premium accounted for 6.2% of GDP
(2022: 6.4%).
In 2023, premium per capita in Slovenia climbed to EUR 1,443, reaching its highest level to date.
Premium as a percentage of GDP stood at 4.8% (0.1 percentage points lower than in 2022),
reaching its lowest level since 2003, due to Slovenia's high GDP growth. Nevertheless, the
insurance industry remains one of the most important economic sectors.
74
Development of Slovenia's insurance market
Premium per capita (data for 2023)
EUR 1,443
Premium as percentage in GDP (data for 2023)
4.8%
Insurance market growth index in 2024
90.3
Source: Slovenian Insurance Association (SZZ)
As at 31 December 2024, a total of
12 insurance companies, five foreign branches and two
reinsurance companies
operated in Slovenia's insurance market, all members of the Slovenian
Insurance Association (SZZ). The aforementioned merger of Triglav, Zdravstvena zavarovalnica
into its parent company resulted in one fewer insurer on the market compared to the previous
year. These data exclude direct insurance transactions of insurers from other EU Member States
(FOS).
In 2024, insurance companies collected
EUR 2.8 billion
in gross written insurance, coinsurance
and reinsurance premiums, down by
9.7%
year-on-year (this calculation does not take into
account internal transfers of assets for the payment of pension annuities). The decline in
premium is due to the aforementioned termination of supplemental health insurance at the end
of 2023. Excluding this premium, which amounted to EUR 599.8 million in 2023, premium
growth in the Slovenian insurance market would have been 11.9%. The highest premium
increases were achieved by motor vehicle insurance with 15% growth, other damage to property
insurance, fire and natural disaster insurance, and unit-linked life insurance.
The Slovenian insurance market remains highly concentrated, with the four largest insurers
holding an 83% market share.
Zavarovalnica Triglav
continues to be the market leader with a
39.4% market share, followed by Zavarovalnica Sava with a 22.2% market share. Among
insurance groups,
the Triglav Group
(the parent company and Triglav, pokojninska družba)
continues to hold the dominant position, having increased its market share by 1.3 percentage
points to 40.8%, followed by the Sava Insurance Group with a 26.6% market share.
The market share of the Triglav Group and Zavarovalnica Triglav in 2024 and premium growth of
the Slovenian market and the Triglav Group (gross written insurance, coinsurance and reinsurance
premiums excluding internal transfers of assets for the payment of pension annuities)
Triglav Group
Zavarovalnica Triglav*
Growth index 2024/2023
Market share
Change
Market share
Change
Slovenian
market
Triglav Group
Non-life insurance
44.7%
+ 2.6 p.p.
44.7%
+ 2.6 p.p.
85
91
Non-life insurance - excluding health
insurance
45.1%
– 1.0 p.p.
45.1%
– 1.0 p.p.
115
112
Health insurance
33.7%
+ 2.0 p.p.
33.7%
+ 2.0 p.p.
10
11
Life insurance
31.3%
– 0.5 p.p.
26.4%
– 0.5 p.p.
106
104
Total
40.8%
+ 1.3 p.p.
39.4%
+ 1.1 p.p.
90
93
* Zavarovalnica Triglav's figures for 2023 have been adjusted and include the premium of Triglav, Zdravstvena zavarovalnica.
** In the calculation of market share, pension insurance contracts are considered as insurance premium, whereas under IFRS 17 they are
financial contracts under the "fund inflows" item.
75
The market shares of insurers and insurance groups in Slovenia in 2024 and comparison with the
previous year
Source: Slovenian Insurance Association (SZZ)
Among supplemental voluntary pension insurance providers,
Triglav, pokojninska družba
held
an
18.7% market share
as at 31 December 2024 (0.1 percentage point lower than the previous
year).
As at 30 June 2024,
Pozavarovalnica Triglav Re
held a market share of
58.2%
in the Slovenian
reinsurance market, recording an increase of 2.4 percentage points year-on-year.
7.4.2
Croatia
Based on strong economic growth in the first half of the year, which continued into the third
quarter of 2024, the National Bank of Croatia estimates annual GDP growth to reach 3.7% (IMF:
3.8%), with a gradual moderation over the next two years. The main drivers of growth are robust
domestic demand, supported by favourable labour market developments, highly stimulative
fiscal policy and substantial private sector investment. Exports of goods also strengthened, while
exports of services started to decline.
According to the Croatian Bureau of Statistics, the annual consumer price inflation rate declined
significantly (from 8.4% in 2023 to 3.4%). The primary factor contributing to moderating
inflation was the much lower expected core inflation (excluding energy and food prices), while
the decline in food price inflation was less pronounced. However, the central bank forecasts that
elevated inflation could persist, driven by strong domestic and foreign demand, particularly for
travel-related services, a strong labour market and significant salary growth. Core and food price
inflation are projected to slow further in 2025 and 2026, while energy price inflation may
stabilise at a slightly higher level than estimated for 2024.
Insurance market
Development of Croatia's insurance market
Premium per capita (data for 2023)
EUR 454
Premium as percentage in GDP (data for 2023)
2.3%
Insurance market growth index in 2024
109.9
Source: Croatian Insurance Bureau
13.8%
1.9%
1.9%
5.0%
16.9%
20.9%
39.5%
5.7%
2.2%
3.1%
6.1%
15.5%
26.6%
40.8%
Others
Merkur
Grawe
Modra zavarovalnica
Generali
Sava Insurance Group
Triglav Group
2024
2023
76
As at 31 December 2024, a total of 14 insurance companies were active in the Croatian market,
of which nine were composite insurers, four non-life insurers and one life insurer. Their total
written premium was 9.9% higher than the year before (market share calculations for Croatia's
insurance market are based on premium paid). Non-life and life insurance premiums increased
by 11.2% and 4.2% respectively. In total written premium, non-life insurance premium rose to
82.6% (2023: 81.6%), while life insurance accounted for the rest.
Market concentration continued to be high, with top three insurers controlling 51% of the
market. With a 25.5% market share, Croatia osiguranje continued to maintain its dominant
position (0.3 percentage points more than in the preceding year). With a 4.8% market share,
down by 0.4 percentage points relative to the year before,
Triglav Osiguranje, Zagreb
maintained
its eighth place.
7.4.3
Serbia
Moody's ("Ba2", positive outlook) and Fitch ("BB+", positive outlook) have affirmed the Republic
of Serbia's sovereign credit rating, while S&P Global ("BBB–", stable outlook) upgraded its rating.
The rating decision was based on appropriate and timely actions and stability, both of which are
key to preserving investment and consumer confidence.
According to the Statistical Office of the Republic of Serbia and the IMF, real GDP growth is
estimated at 3.9%, while the Central Bank of Serbia forecasts medium-term growth in the range
of 4–5%. The inflation rate has been declining since April 2023, reaching the target range of 3.4%
in May 2024. The Central Bank expects inflation to remain within the target range of 3% ± 1.5%
over the medium term.
Typical labour market developments include growth in employment and real growth in average
salary (by 9.3% in January–October 2024). According to the data from the Statistical Office of the
Republic of Serbia, the unemployment rate in the third quarter of 2024 stood at 8.1%, while the
employment rate reached a record high of 51.9%.
Insurance market
Development of Serbia's insurance market
Premium per capita (data for 2023)
EUR 201
Premium as percentage in GDP (data for 2023)
1.9%
Insurance market growth index in Q1-Q3 2024
114.7
Source: 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 control almost two thirds of the market. Total written premium increased by
14.7% in the first nine months of 2024. Non-life insurance premium recorded 15.9% growth,
while life insurance premium growth stood at 9.4%. In total written premium, non-life insurance
premium climbed to 82.3% (compared to 81.5% in the preceding year).
Our insurer in Serbia,
Triglav Osiguranje
,
Belgrade
, increased its market share to 7.7% (2023:
7.5%), maintaining its fifth place. Its written premium growth was higher than the Serbian
insurance market growth (index 117.6).
77
7.4.4
Montenegro
According to IMF estimates, GDP growth in Montenegro stood at 3.7%, with the same rate
forecast for 2025. In the services and IT sectors, the country should remove more barriers to
facilitate entry and employment in these areas, as well as implement reforms and invest in the
green economy to align with the European Union's standard of living.
Inflation in 2024 was reported at 2.1% by Eurostat and 4.2% by the IMF. The easing of price
pressures at the EU level is expected to result in a gradual moderation, with the IMF forecasting
an average of 3% per year over 2025–2027.
The unemployment rate reached 11.0% at the end of September (13.1% at the end of 2023). The
total number of unemployed in Montenegro at the end of November was 33,205.
Both S&P Global and Moody's upgraded Montenegro's credit rating in 2024. S&P Global twice
positively assessed Montenegro's creditworthiness, revising its "B" rating from stable to positive
in March, then upgrading it from "B" to "B+" with a stable outlook in August. The key factors
behind the upgrade were a significant reduction in public debt, high nominal GDP growth,
continued progress on structural reforms as part of the EU accession process and a recovery in
the tourism sector, which strengthened Montenegro's balance-of-payments position. Moody's
upgraded the rating from "B1" to "Ba3" with a stable outlook, confirming that Montenegro is
improving its economic parameters, achieving macroeconomic stability, and providing positive
signals and security to both existing and potential investors.
Insurance market
Development of Montenegro's insurance market
Premium per capita (data for 2023)
EUR 194
Premium as percentage in GDP (data for 2023)
1.7%
Insurance market growth index in 2024
112.3
Source: Insurance Supervision Agency of Montenegro
As at 31 December 2024, a total of nine insurance companies were active in Montenegro's
insurance market (five non-life insurers and four life insurers), generating 12.3% more written
premium than the year before. The non-life premium volume grew by 17.6% and the life
premium volume by 11.1%. In total written premium, non-life insurance continued to account
for the bulk (79.3%).
The Triglav Group
, represented by
Lovćen Osiguranje
and
Lovćen životna osiguranja
in
Montenegro, maintained its leading position in the market, securing a 34.6% market share
(compared to 35.0% in the previous year). The Group is followed by Sava Osiguranje and Uniqa
Group (non-life and life insurance together) with a 16.9% and 16.0% market share respectively.
Both Group members recorded 11.1% premium growth.
7.4.5
Bosnia and Herzegovina
S&P Global affirmed Bosnia and Herzegovina's sovereign credit rating of "B+" with a stable
outlook for 2024.
Over the past two decades, Bosnia and Herzegovina has made significant development progress,
achieving upper middle-income status and becoming a candidate for European Union
membership. Further development requires economic and energy structural reforms as well as
improved coordination at all government levels.
78
According to the latest World Bank analysis (March 2024), Bosnia and Herzegovina has
significantly reduced its external current account deficit. However, major challenges remain,
with real GDP lagging behind regional peers and living standards at approximately one-third of
the European Union average.
The IMF forecasts Bosnia and Herzegovina's economic growth at 2.5% in 2024, double that of
the previous year. However, it warns of rising budget deficits and excessive public spending,
which could threaten sustainable development. Encouragingly, inflation continues to decline
and is expected to drop from 6.1% in 2023 to 2.2% in 2024.
The number of unemployed fell by 7% (as of October 2024), with the IMF estimating an
unemployment rate of 13.2%.
Insurance market
Development of Bosnia and Herzegovina's insurance market
Premium per capita (data for 2023)
EUR 157
Premium as percentage in GDP (data for 2023)
2.0%
Insurance market growth index in 2024
110.3
Source: FBIH Insurance Supervision Agency, RS Insurance Agency
As at 31 December 2024, a total of 24 insurance companies were active on the very small but
highly competitive insurance market of Bosnia and Herzegovina, of which 10 were domiciled in
the Federation of BiH and 14 in Republika Srpska, including branches. In the BiH market as a
whole, written premium increased by 10.3%, with premium in the Federation of BiH growing by
9.9% and in Republika Srpska by 11.1%. In total written premium, non-life insurance premium
remained dominant, accounting for 80.9%.
The Agram corporate group (Adriatic osiguranje and Euroherc) retained its leading market
position in
the Federation of BiH
, holding a 23.6% market share.
Triglav Osiguranje, Sarajevo
held a 9.7% market share (2023: 10.6%), ranking fourth (compared to third the previous year).
Holding an 11.5% market share, Grawe osiguranje maintained a dominant position in the
Republika Srpska
market.
Triglav Osiguranje, Banja Luka
and
Triglav Osiguranje, Sarajevo
branch
together achieved a 5.5% market share (down by 1.1 percentage points from the previous
year) and ranked eighth (compared to fifth the year before).
In
Bosnia and Herzegovina
,
the Triglav Group
held an 8.3% market share (a decrease of 1.0
percentage point year-on-year), ranking fifth among the insurance groups.
7.4.6
North Macedonia
North Macedonia's economy is projected to grow by 2.2% in 2024 according to the IMF, and by
2.1% in 2025, according to the North Macedonian Ministry of Finance. Meanwhile, the IMF
forecasts a stronger growth of 3.6% in 2025.
The annual inflation rate has been volatile in recent years, fluctuating between negative and
significant positive values. While inflation is expected to decline in 2024 (IMF estimate: 3.3%,
Eurostat: 3.5%), the country faces significant challenges in maintaining price stability. The World
Bank identified several factors contributing to inflationary pressures in North Macedonia,
including rising commodity prices, labour market imbalances and fiscal imbalances. The
country's high public debt and reliance on external financing could further exacerbate inflation.
For 2025, the IMF forecasts inflation at 2.0%.
79
The unemployment rate declined in 2024, reaching 12.3% in the third quarter, while the labour
force participation rate reached 52.6%. The Ministry of Finance forecasts the unemployment rate
at 12.5% and expects it to fall to 11.2% in 2025.
Insurance market
Development of North Macedonia's insurance market
Premium per capita (data for 2023)
EUR 128
Premium as percentage in GDP (data for 2023)
1.7%
Insurance market growth index in 2024
111.3
Source: Insurance Supervision Agency of North Macedonia
A total of 17 insurance companies were active in North Macedonia's insurance market (11 non-
life insurers and six life insurers). Total written premium increased by 11.3% in 2024. Non-life
insurance premium, accounting for 81.9% of total written premium (0.8 percentage points lower
than the previous year), grew by 10.3%, while life insurance premium rose by 16.3%.
The Triglav Group
operates through two insurers, which together achieved a market share of
13.8% (2023: 13.4%), maintaining its third place among insurance groups. Holding a 10.1%
market share (down 0.1 percentage points year-on-year),
Triglav Osiguruvanje, Skopje
ranked
second among insurers. Specialising in non-life insurance, it maintained a 12.4% market share.
Triglav Osiguruvanje Život, Skopje
significantly increased its share in the life insurance market
to 20.5% (2023: 18.1%), thanks to strong premium growth (index 131).
7.5
Asset and investment fund management market in Slovenia
A total of five asset management companies operated
in Slovenia
, which managed the net asset
value of EUR 6.2 billion in
mutual funds
as at 31 December 2024, up by 31% year-on-year. Triglav
Skladi is one of the leading asset managers in investment funds, with a market share of 30.8%
(compared to 31.2% in 2023). In 2024, it managed
EUR 1.9 billion in mutual fund assets
, up by
29% year-on-year.
Discretionary mandate services
, provided by four companies, accounted for EUR 2.7 billion of
discretionary mandate assets at the 2024 year-end, down by 3% relative to the 2023 year-end.
Triglav Skladi increased its market share
in the discretionary mandate segment
to 12.7%
(2023:
7.6%), and its assets under management rose by 61% to
EUR 336.1 million
.
80
8.
Operations of the Triglav Group and Zavarovalnica
Triglav
-
The Triglav Group performed well, exceeding expectations. Its results were also positively
impacted by one-off events, particularly in the Health segment.
-
Earnings before tax totalled EUR 159.0 million, reflecting strong performance across all
business segments.
-
The situation in the financial markets had a positive impact on the return on the Group's
investments, with claims development being relatively favourable.
-
The combined ratio for the Non-Life and Health segments stood at a favourable 93.6%.
In 2024,
the Group
achieved
earnings before tax of EUR 159.0 million
in 2024 (2023: EUR 21.1
million), surpassing the mid-year estimate of EUR 130–150 million. Of this amount, EUR 16.1
million relates to discontinued operations (2023: EUR –27.8 million), specifically the effects of
the terminated supplemental health insurance business in Slovenia. The remaining EUR 142.9
million represents the result from continuing operations (2023: EUR 48.8 million).
Net earnings
amounted to EUR 131.4 million (2023: EUR –16.3 million). The Group achieved strong
performance across all activities and business segments.
Net earnings were also positively
impacted by one-off events (state compensation received and the release of provisions in the
Health segment, both relating to discontinued operations, and the sale of an associate).
Backed
by significant asset-liability maturity matching,
other comprehensive income
amounted to EUR
6.3 million (2023: EUR 34.7 million).
Return on equity
was 14.0%, driven by the strong increase
in net earnings.
The total business volume
was EUR 1,717.6 million, compared to a target of approximately EUR
1.6 billion. It was down 1% year-on-year due to the termination of supplemental health
insurance in Slovenia, which in 2023 generated EUR 190.0 million in written premium. Excluding
the written premium from terminated insurance, total business volume growth would have
been 11%.
Total business volume of the Triglav Group by segment (EUR million)
Zavarovalnica Triglav
achieved
earnings before tax
of EUR 117.6 million (2023: EUR 15.8 million)
and
net earnings
of EUR 98.2 million (2023: EUR 14.2 million). Earnings before tax from
continuing operations, i.e. excluding supplemental health insurance, amounted to EUR 101.4
million, compared to EUR 43.5 million the previous year (for further details on the merger of
Triglav, Zdravstvena zavarovalnica and its impact see Sections
2.7 Merger of the subsidiary
107.8
223.0
229.5
1,177.7
1,738.0
112.4
56.2
244.6
1,304.4
1,171.6
Asset
Management
Health
Life
Non-Life
Total
2024
2023
81
Triglav, Zdravstvena zavarovalnica, 2.9 Reporting by business segment
and
3.7.6 Non-current
assets held for sale and discontinued operations
in the Accounting Report). The insurance
operating result of EUR 84.4 million (2023: EUR –10.6 million) was predominantly influenced by
a decrease in claims incurred in the Health and Non-Life segments. The net investment result
grew by 36% to EUR 33.8 million. It was positively influenced by higher interest income (index
130) and returns on alternative investment classes, whereas the corresponding gains on disposal
of investments in associates were lower than last year due to lower dividend income (index 49).
In the past year, a positive impact on the net investment result (and thus on earnings before tax)
was recorded due to the release of provisions for not achieving the guaranteed yield, amounting
to EUR 4.3 million was recorded, but this was not the case in 2024. The Company's other
comprehensive income amounted to EUR 0.7 million (2023: EUR 33.3 million), influenced by
changes in required yields in 2024.
Certain categories of the Group's operations and the structure of earnings generated in 2024 are
explained in more detail below.
The Group's
total revenue
of EUR 1,393.2 million was down 2%, primarily due to lower insurance
revenue in the Health segment following the termination of supplemental health insurance.
Insurance revenue
declined by 4% to EUR 1,298.0 million, whereas income from asset
management grew by 24% to EUR 49.4 million and other income rose by 34% to EUR 45.9 million,
mainly due to the state compensation under the Decree on setting the maximum price of the
supplemental health insurance premium of EUR 11.0 million.
Insurance revenue of the Triglav Group by segment (EUR million)
The Group generated
EUR 1,622.3 million in consolidated gross written premium
, which is 2%
less year-on-year as a result of the termination of supplemental health insurance in Slovenia;
excluding this impact, premium growth would have been 10%.
This impact is also the reason
why, in absolute terms, 13% less premium was written on Slovenia's market (otherwise it would
have been 6%), whereas a 21% growth was recorded in the international market and a 9%
growth in other markets of the Adria region. A total of 56.0% of premium was earned in the
Slovenian insurance market (2023: 62.7%) and 20.7% in the remaining markets of the Adria
region (2023: 18.5%), while the share of international insurance and reinsurance increased by
4.5 percentage points to 23.3%.
223.2
85.4
1,042.6
1,351.2
43.3
98.4
1,156.3
1,298.0
Health
Life
Non-Life
Total
2024
2023
82
Gross written premium of the Triglav Group by market (EUR million)
Insurance service expenses
fell considerably (by 25%) and amounted to EUR 991.8 million. The
decline was attributable to an 84% reduction in insurance service expenses in the Health
segment following the termination of supplemental health insurance, as previously noted, and
a 13% reduction in the Non-Life segment, primarily due to high CAT claims in the previous year.
The Life segment expenses were 11% higher.
Insurance service expenses of the Triglav Group by segment (EUR million)
The Group's combined ratio for the Non-Life and Health segments
stood at favourable 93.6%,
down by 8.3 percentage points year-on-year. Backed by a relatively favourable claims
development, the combined ratio for the Non-Life segment improved by 5.6 percentage points
to 94.0%, and the combined ratio of the Health segment improved by 28.2 percentage points to
84.1% The key drivers of its significant decrease were lower insurance service expenses for health
insurance claims due to the termination of supplemental health insurance and the release of
provisions for this insurance. On the revenue side, the decrease was influenced by state
compensation under the Decree on setting the maximum price of the supplemental health
insurance premium (see Section
2.3 Health segment
for more information). Excluding the impact
of supplemental health insurance (i.e. discontinued operations), the combined ratio for the
1,043.9
96.9
90.7
47.4
41.8
31.3
311.7
909.2
114.9
91.3
47.0
46.4
35.9
377.5
Slovenia
Serbia
Croatia
Bosnia and
Herzegovina
Montenegro
North Macedonia
International
insurance and
reinsurance
2023
2024
249.3
59.8
1,014.2
1,323.3
40.1
66.2
885.5
991.8
Health
Life
Non-Life
Total
2024
2023
83
Health segment would have been 117.8% (with a claims ratio of 73.3% and an expense ratio of
44.5%). The total combined ratio for the Non-Life and Health segments would have been 94.9%
(with a claims ratio of 66.6% and an expense ratio of 28.3%). The increase in the expense ratio to
28.1% (2023: 25.6%) was mainly driven by the changed structure of insurance revenue following
the termination of supplemental health insurance, which had a high claims ratio and a low
expense ratio. Excluding the impact of supplemental health insurance, the expense ratio would
have been 28.8% in 2023.
Combined ratio for the Non-Life and Health segments of the Triglav Group
The combined ratio for the Non-Life and Health segments decreased across most insurance
markets, with the exception of Montenegro (higher claims ratio). In Croatia, the combined ratio
exceeded 100%, reaching 104.5%, though this marked a 3.6 percentage point decrease compared
to the previous year. As a result of the insurance portfolio adjustment, an improvement in
profitability in this market is expected to continue.
Combined ratio for the Non-Life and Health segments of the Triglav Group by market
The Group's CSM of new contracts
amounted to EUR 48.8 million (index 115), the bulk of which
(84%) was generated in the Life segment and the remaining 16% in the Non-Life segment. The
share of the CSM of new contracts in total contractual service margin was 17.0%, a decrease of
0.7 percentage points year-on-year, also due to an increase in the contractual service margin
76.3%
65.5%
25.6%
28.1%
2023
2024
Expense ratio
Claims ratio
101.9%
93.6%
102.8%
108.1%
100.0%
101.3%
95.6%
100.0%
92.2%
104.5%
98.7%
94.7%
97.9%
97.7%
Slovenia
Croatia
Serbia
Bosnia and
Herzegovina
Montenegro
North Macedonia
2023
2024
84
resulting from changes in expected cash flows. The release of the contractual service margin to
profit or loss amounted to EUR 47.7 million in the reporting period, up by 20% year-on-year.
As at 31 December 2024,
the Group's contractual service margin
amounted to EUR 286.8 million,
up by EUR 48.4 million (index 120).
This was primarily due to changes in expected cash flows
arising from adjustments in assumptions in the Life segment (see
Section 8.2 Life segment
for
further details).
85
Structure of earnings before tax of the Triglav Group
Structure of earnings before tax of the Triglav Group*
2024
2023
Non-Life
Life
Health
Asset
Management
Total
Non-Life
Life
Health
Asset
Management
Total
Insurance operating result
69,084,585
19,804,608
8,620,876
97,510,069
3,641,356
16,684,632
–27,377,596
–7,051,608
Insurance revenue
1,156,299,596
98,399,942
43,252,835
1,297,952,373
1,042,646,914
85,367,869
223,171,882
1,351,186,665
State compensation pursuant to the Decree on
supplemental health insurance premium
10,996,355
10,996,355
0
Claims incurred
627,530,982
27,161,982
23,996,976
678,689,940
769,196,929
25,603,176
226,446,868
1,021,246,973
Acquisition and administrative costs incl. non-att. items
304,338,440
48,590,117
18,007,025
370,935,582
290,661,755
42,030,166
25,319,883
358,011,804
Net reinsurance service result
–139,958,713
272,006
–1,244,211
–140,930,918
29,702,036
1,619,193
285,341
31,606,570
Net other insurance revenue and expenses
–15,386,876
–3,115,241
–2,380,102
–20,882,219
–8,848,910
–2,669,088
931,932
–10,586,066
Net investment result
32,865,549
10,523,083
1,247,919
4,355,021
48,991,572
11,039,199
1,942,121
–2,945,661
12,196,256
22,231,915
Result from non-insurance operations
–1,118,837
9,987
472,074
13,177,336
12,540,560
–132,442
317,352
–1,089,949
6,785,169
5,880,130
Insurance service expenses to insurance revenue
49,364,063
49,364,063
39,685,487
39,685,487
Operating expenses
13,510,736
7,818,872
3,684,670
36,417,154
61,431,432
13,147,035
8,160,186
1,506,833
31,269,108
54,083,162
Net other income and expenses
12,391,899
7,828,859
4,156,744
230,427
24,607,929
13,014,593
8,477,538
416,884
–1,631,210
20,277,805
Earnings before tax
100,831,298
30,337,678
10,340,868
17,532,357
159,042,201
14,548,113
18,944,105
–31,413,205
18,981,424
21,060,437
Earnings before tax of discontinued operations
16,147,704
16,147,704
–27,775,868
–27,775,868
Earnings before tax of continuing operations
100,831,297
30,337,678
–5,806,835
17,532,357
142,894,497
14,548,113
18,944,105
–3,637,338
18,981,424
48,836,305
*
The presentation of the Health segment includes the health insurance business of the Group insurance companies that sell these insurance products and the non-insurance company complementing this business,
whereas last year it only included Triglav, Zdravstvena zavarovalnica. The Health segment presentation also includes the investment portion of own insurance portfolios. The change therefore affects the Non-Life
segment presentation.
The Group's
insurance operating result
amounted to EUR 97.5 million (2023: EUR –7.1 million), with strong growth achieved by all three segments.
The Non-Life segment's insurance operating result (EUR 69.1 million) was mainly positively affected by an 11% increase in insurance revenue due to
past premium adjustments and business volume growth and a sharp 18% decrease in claims incurred (see Section
8.1 Non-Life segment
for more
information). The insurance operating result before tax of the Life segment increased by 19% to EUR 19.8 million (see Section
8.2 Life segment
for
more information). In the Health segment, the operating result reached EUR 8.6 million, while last year it amounted to EUR –27.4 million (see Section
8.3 Health segment
for more information on this and the impact of discontinued operations).
The net reinsurance service result, with a relatively normal volume of CAT claims, amounted to EUR –140.9 million (compared to EUR 31.6 million in
the previous year, which was positive due to an exceptionally high volume of CAT claims). Furthermore, due to the increased business volume and
slightly less favourable reinsurance conditions (primarily NAT CAT protection), reinsurance expenses rose (index 109).
86
Acquisition and administrative costs including non-attributable items were 4% higher. The
increase was recorded in the Life and Non-Life segments.
The net investment result
grew to EUR 49.0 million (2023: 22.2 million), driven by favourable
trends in financial markets and gains on disposal of a participating interest in an associate. The
investment result amounted to EUR 159.7 million (2023: EUR 83.8 million), whereas the financial
result from insurance contracts was negative at EUR –118.5 million (2023: EUR –69.7 million).
Gains on disposal of investments in associates amounted to EUR 6.9 million (index 310) and
impairment losses on investments in associates and joint ventures amounted to EUR –66
thousand (2023: EUR –2.3 million). The change in provisions for not achieving the guaranteed
yield of EUR 908 thousand had a positive impact on the result, but to a lesser extent than in the
previous year (2023: EUR 8.1 million).
The result from non-insurance operations before tax
rose to EUR 12.5 million (2023: EUR 5.9
million). In this respect, earnings before tax of EUR 13.2 million (index 194) were recorded in the
Asset Management segment (non-insurance operations), EUR 472 thousand in the Health
segment, and EUR –1.1 million in the Non-Life segment. Income from asset management rose
by 24%, operating expenses were 16% higher and net other income amounted to EUR 230
thousand (2023: EUR –1.6 million).
Earnings before tax of the Triglav Group (EUR million)
Earnings before tax of the Triglav Group by segments (EUR million)
-7.1
22.2
5.9
21.1
97.5
49.0
12.5
159.0
Insurance operating result
Net investment result
Result from non-insurance
Earnings before tax
2023
2024
14.5
18.9
-31.4
19.0
21.1
100.8
30.3
10.3
17.5
159.0
Non-Life
Life
Health
Asset Management
Earnings before tax
2023
2024
87
Operating expenses
The Group's consolidated operating expenses, including other attributable insurance service
expenses,
grew by 5% to EUR 450.8 million. Operating expenses for continuing operations
increased by 9%. Operating expenses were 7% higher year-on-year at EUR 463.9 million, while
other attributable insurance service expenses were up 28% (EUR 30.5 million). The change in
deferred acquisition costs reduced operating expenses by EUR 27.4 million (index 201), driven by
an increase in written premium.
Operating expenses of the Triglav Group by nature
2024
2023
Index
Share
Acquisition costs
107,782,991
92,666,926
116
23.2%
Cost of goods sold
52,458
–65,286
0.0%
Depreciation/amortisation costs
27,327,519
26,291,666
104
5.9%
Depreciation/amortisation costs of leased assets
6,054,268
6,699,012
90
1.3%
Depreciation/amortisation costs of other operating assets
21,273,251
19,592,654
109
4.6%
Labour costs
206,498,232
197,947,600
104
44.5%
Wages and salaries
143,838,211
136,779,849
105
31.0%
Social and pension insurance costs
31,205,439
29,779,769
105
6.7%
Other labour costs
31,454,582
31,387,982
100
6.8%
Costs of services
122,191,835
117,264,369
104
26.3%
Costs of advertising, representation and sponsorship
25,736,029
23,610,478
109
5.5%
Maintenance costs
16,873,880
16,722,521
101
3.6%
Costs of material and energy
8,524,083
10,047,184
85
1.8%
Costs of payment transactions and banking services
2,381,188
2,550,277
93
0.5%
Insurance premium costs
2,073,784
2,113,737
98
0.4%
Costs of intellectual services
9,466,647
9,403,593
101
2.0%
Training costs
1,704,344
1,559,320
109
0.4%
Expenses for short-term leases, low-value leases and other leases
9,396,303
8,276,770
114
2.0%
Costs of transport and communications services
5,540,728
6,459,293
86
1.2%
Reimbursement of labour-related costs
5,596,351
5,596,541
100
1.2%
Costs of services provided by natural persons other than sole
proprietors
2,186,331
2,070,808
106
0.5%
Other costs of services
32,712,167
28,853,847
113
7.1%
Total operating expenses (1)
463,853,035
434,105,275
107
100.0%
Other attributable insurance service expenses (2)
30,452,813
23,795,694
128
Change in deferred acquisition costs (3)
–27,435,542
–13,616,542
201
Total (1+2+3)
466,870,306
444,284,427
105
Elimination of intercompany transactions
–16,023,214
–15,269,700
105
Total consolidated (1+2+3+4)
450,847,092
429,014,727
105
Costs and other attributable insurance service expenses of discontinued
operations (5)
–1,177,761
–15,470,939
8
Total costs and insurance service expenses of continuing operations (1 +
2 + 3 + 4 + 5)
449,669,331
413,543,788
109
Acquisition costs
of EUR 107.8 million were 16% higher. The significant increase in this segment
of operating expenses was driven by the higher volume of transactions concluded under the
principle of free movement of services (FOS) in the EU and via the Greece branch (under the FOE
principle), as well as by the increased volume of written premium from insurance policies taken
out via external sales channels.
At 44.5%,
labour costs
accounted for the largest portion of total expenses. They amounted to EUR
206.5 million, up by 4% year-on-year. The increase in labour costs was driven by salary increases,
a higher number of employees at some subsidiaries, and higher salary costs for agents due to
premium growth at the parent company. Total growth in employees' salaries was 5%, while
88
other labour costs remained roughly at the same level as the previous year (index 100). The main
contributing factor was lower employee benefits at the parent company.
Costs of services
amounting to EUR 122.2 million grew by 4%. Among them, the bulk was
accounted for by other costs of services (EUR 32.7 million), costs of advertising, representation
and sponsorships (EUR 25.7 million), and maintenance costs (EUR 16.9 million). The main
contributors to the growth of this group of costs were:
▪
other costs of services
(index 113), primarily driven by higher fees at Triglav Skladi due to
higher net inflows;
▪
expenses for short-term leases, low-value leases and other leases
(index 114), where growth
was mainly achieved by the costs of rentals and leases in the IT area (particularly due to
digitalisation);
▪
costs of advertising, representation and sponsorships
(index 109), in particular higher costs of
advertising and sponsorships.
A significant reduction in costs was achieved in costs of materials and energy (index 85), costs of
transport and communications services (index 86), and costs of payment transactions and
banking services (index 93).
Non-consolidated operating expenses from insurance operations
amounted to EUR 405.6
million, up by 6%, predominantly due to an increase in acquisition costs and labour costs.
Attributable costs of EUR 349.5 million accounted for 86.2% of expenses from insurance
operations, while non-attributable costs accounted for the remaining 13.8%. Non-consolidated
expenses from non-insurance operations
increased by 16% and totalled EUR 58.3 million, mainly
as a result of higher labour costs (predominantly Triglav zdravje asistenca due to redeployment
of some employees from Triglav, zdravstvena zavarovalnica) and higher other costs of services
(mainly fees at Triglav Skladi due to an increase in net asset value of assets under management).
The increase in
other attributable insurance service expenses
(index 128) was driven by higher
other insurance service expenses at the parent company (contributions and benefits in Poland
and Greece, higher claim handling expenses and costs of assistance services), expenses for fire
fee and the parent company's healthcare contributions.
89
Operating expenses of the Triglav Group
2024
2023
Operating
expenses
Other
attributable
insurance
service
expenses
Changes in
deferred
acquisition
costs
Elimination of
intercompany
transactions
Total
Total
continuing
operations
Operating
expenses
Other
attributable
insurance
service
expenses
Changes in
deferred
acquisition
costs
Elimination of
intercompany
transactions
Total
Total
continuing
operations
Attributable costs
349,515,846
30,452,813
–27,435,542
–2,873,853
349,659,264
348,718,362
328,462,819
23,592,298
–13,616,542
–2,592,319
335,846,256
322,419,212
Attributable acquisition costs
235,989,740
214,163
–27,435,542
–1,022,550
207,745,811
207,707,707
214,668,318
213,309
–13,616,542
–1,080,481
200,184,604
199,299,814
Attributable claim handling expenses
29,527,952
7,007,582
0
36,535,534
36,527,721
29,992,668
3,844,303
0
33,836,971
33,735,738
Attributable administrative costs
83,998,154
23,231,068
0
–1,851,303
105,377,919
104,482,935
83,801,833
19,534,686
0
–1,511,838
101,824,681
89,383,659
Non-attributable costs
56,064,132
0
0
–10,700,778
45,363,354
45,126,494
55,217,194
203,396
0
–10,469,734
44,950,856
42,906,961
Insurance operations (1)
405,579,978
30,452,813
–27,435,542
–13,574,631
395,022,618
393,844,857
383,680,013
23,795,694
–13,616,542
–13,062,053
380,797,112
365,326,173
Non-insurance operations (2)
58,273,056
–2,448,583
55,824,474
55,824,473
50,425,262
–2,207,647
48,217,615
48,217,615
Total (1 + 2)
463,853,034
30,452,813
–27,435,542
–16,023,214
450,847,091
449,669,330
434,105,275
23,795,694
–13,616,542
–15,269,700
429,014,727
413,543,788
Index
Attributable costs
106
129
201
111
104
108
Attributable acquisition costs
110
100
201
95
104
104
Attributable claim handling expenses
98
182
0
0
108
108
Attributable administrative costs
100
119
0
122
103
117
Non-attributable costs
102
0
0
102
101
105
Insurance operations (1)
106
128
201
104
104
108
Non-insurance operations (2)
116
0
0
111
116
116
Total (1 + 2)
107
128
201
105
105
109
90
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, environmental, social and
governance (ESG) aspects are being enhanced in investment processes.
Through active investing, the Group
maintained an investment portfolio structure comparable
to that at the end of 2023
, with its value increasing to EUR 3,906.1 million (index 115). The bulk
of the total investment portfolio, i.e. 53.6%, 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 mainly affected by the favourable situation on the financial markets. 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 2024 and 31 December 2023
Investments
Index
Share
31 Dec 2024
31 Dec 2023
2024/2023
31 Dec 2024
31 Dec 2023
Investment property
70,411,373
67,953,773
104
1.8%
2.0%
Investments in associates and joint ventures
55,621,373
37,708,062
148
1.4%
1.1%
Shares and other variable-income securities
200,682,891
168,680,198
119
5.1%
5.0%
Debt and other fixed-income securities
2,092,633,169
1,860,044,900
113
53.6%
54.7%
Loans given
6,622,689
6,557,903
101
0.2%
0.2%
Bank deposits
60,833,549
65,794,876
92
1.6%
1.9%
Other financial instruments
909,337
872,414
104
0.0%
0.0%
Total (1)
2,487,714,381
2,207,612,126
113
63.7%
65.0%
Unit-linked life insurance assets (2)
678,910,235
540,890,478
126
17.4%
15.9%
Financial investments from financial contracts (3)
739,510,939
650,042,171
114
18.9%
19.1%
Total (1 + 2 + 3)
3,906,135,555
3,398,544,775
115
100.0%
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 2024,
these assets amounted to EUR 678.9 million (index 126).
As at 31 December 2024,
the Group's financial investments from financial contracts
amounted
to EUR 739.5 million, up by 14% year-on-year. They include individual and group supplemental
voluntary pension insurance contracts of the parent company and Triglav, pokojninska družba.
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.
Sustainable fixed-income investments
increased by 29% to EUR 339.4 million, raising their share
of the total bond portfolio to 12.9% (31 December 2023: 11.1%). The table is included in Section
10.2.1.3 Services and products promoting social and environmental benefits
.
As at the reporting date,
the Company's
investments stood at EUR 2,842.6 million, 14% higher
than the previous year.
91
Investments of Zavarovalnica Triglav as at 31 December 2024 and 31 December 2023
Investments
Index
Share
31 Dec 2024
31 Dec 2023*
2024/2023
31 Dec 2024
31 Dec 2023
Investment property
44,971,145
43,427,181
104
1.6%
1.7%
Investments in subsidiaries
196,624,457
195,624,458
101
6.9%
7.9%
Investments in associates and joint ventures
55,059,388
37,218,841
148
1.9%
1.5%
Shares and other variable-income securities
152,938,524
118,763,970
129
5.4%
4.8%
Debt and other variable-income securities
1,450,298,136
1,312,299,502
111
51.0%
52.8%
Loans given
5,306,572
4,547,639
117
0.2%
0.2%
Bank deposits
7,212,864
7,212,364
100
0.3%
0.3%
Other financial instruments
19,810
0
0
0.0%
0.0%
Total (1)
1,912,430,896
1,719,093,954
111
67.3%
69.1%
Unit-linked life insurance contract investments (2)
645,594,699
512,824,007
126
22.7%
20.6%
Financial investments from financial contracts (3)
284,582,910
255,841,272
111
10.0%
10.3%
Total (1 + 2 + 3)
2,842,608,505
2,487,759,233
114
100.0%
100.0%
* The figures for 2023 have been adjusted to reflect the merger of Triglav, Zdravstvena zavarovalnica.
Backed by a favourable trend in the financial markets, the Group's
investment result
amounted
to EUR 159.8 million in 2024 (2023: EUR 83.8 million). The result excluding unit-linked life
insurance assets amounted to EUR 61.8 million (index: 180). Taking into account the financial
result from insurance contracts of EUR –118.5 million, the change in provisions for not achieving
the guaranteed yield in the amount of EUR 908 thousand (2023: EUR 8.1 million), and gains and
impairments of investments in associates of EUR 6.9 million, the impact of the investment result
on the Group's earnings was positive in the amount of
EUR 49.0 million
(2023: EUR 22.2 million).
The return on unit-linked life insurance assets is part of the total investment result, but at the
same time it affects the financial result from insurance contracts in the opposite amount. It
stood at EUR 98.0 million (2023: EUR 49.6 million). Gains and impairments of investments in
associates rose to EUR 6.9 million (2023: EUR –39 thousand) due to the sale of a participating
interest in an associate.
The total return on the Group's financial investments
was thus 100%
higher at EUR 68.6 million.
Return on financial investments of the Triglav Group
Return on financial investments
Return excluding unit-linked life
insurance assets
2024
2023
Index
2024
2023
Index
Interest income calculated using the effective interest
method
47,286,696
35,098,297
135
47,286,696
35,098,297
135
Dividend income
2,599,868
2,705,064
96
2,599,868
2,705,064
96
Net gains/losses on financial investments at fair value
through profit or loss
106,774,705
55,709,619
192
8,839,813
6,126,387
144
Net gains/losses on financial investments at amortised
cost
–335
464
–335
464
Net gains/losses on financial investments at fair value
through other comprehensive income
–3,314,398
–9,304,016
36
–3,314,398
–9,304,016
36
Net impairment/reversal of impairment
3,334,270
2,291,758
145
3,334,270
2,291,758
145
Other investment income/expenses
3,065,770
–2,669,998
61,738,356
–2,646,409
Total return on financial investments (1)
159,746,576
83,831,188
191
6,878,092
34,271,545
180
Gains/losses and impairments of investments in associates
(2)
6,878,092
–38,776
68,616,448
–38,776
Total (1 + 2)
166,624,668
83,792,412
199
61,738,356
34,232,769
200
Rate of return on investment
5.8%
3.2%
2.6 p.p.
3.0%
1.6%
1.4 p.p.
Net gains on financial investments at fair value through profit or loss recorded significant profits,
driven by exceptionally high growth in equity investments. High growth was achieved in both
the management of unit-linked life insurance assets (index 198) and in the management of own
financial investments at fair value through profit or loss (index 144). Interest income rose by
92
35%, primarily due to higher interest rates. The net reversal of impairment of financial
investments amounted to EUR 3.3 million, primarily due to the disposal of previously impaired
debt investments. Dividend income amounted to EUR 2.6 million, down by 4%.
The rate of return on investments of the Group
(excluding unit-linked insurance assets) was
3.0%, up by 1.4. percentage points year-on-year. Excluding exchange rate differences, the rate of
return at Group level was 3.0% (2023: 1.7%). The significant positive impact on returns was
attributed to interest income, which amounted to EUR 47.3 million (2023: EUR 35.1 million) and
the high growth of equity markets, contributing EUR 8.8 million euro (2023: EUR 6.1 million). In
the return on investments, EUR –3.3 million relates to the loss on the sale of bonds and EUR 3.0
million to the reversal of a prior impairment for the same bonds. Therefore, the net result is not
affected by the sale at a loss, as the bonds were previously impaired accordingly.
Return on financial investments of Zavarovalnica Triglav
Return on financial investments
Return excluding unit-linked life
insurance assets
2024
2023*
Index
2024
2023*
Index
Interest income calculated using the effective interest
method
29,070,766
22,302,286
130
29,070,767
22,302,286
130
Dividend income
2,019,695
2,441,534
83
2,019,696
2,441,534
83
Net gains/losses on financial investments at fair value
through profit or loss
101,301,907
49,870,224
203
6,125,799
3,645,078
168
Net gains/losses on financial investments at fair value
through other comprehensive income
–2,543,756
–9,082,410
28
–2,543,756
–9,082,410
28
Net impairment/reversal of impairment
2,754,998
1,490,903
185
2,754,998
1,490,903
185
Other investment income/expenses
2,257,704
73,109
3,088
2,258,064
73,289
3,081
Total return on financial investments (1)
134,861,316
67,095,646
201
39,685,568
20,870,680
190
Gains/losses and impairments of investments in associates
(2)
9,032,880
16,304,050
55
9,032,880
16,304,050
55
Total (1 + 2)
143,894,196
83,399,696
173
48,718,448
37,174,730
131
Rate of return on investments
6.1%
3.8%
2.3 p.p.
2.8%
2.2%
0.6 p.p.
* The figures for 2023 have been adjusted to reflect the merger of Triglav, Zdravstvena zavarovalnica.
Equity
The Triglav Group's total equity
as at 31 December 2024 amounted to EUR 989.0 million, up by
11% relative to 31 December 2023. The Group's total equity represented 21.8% of total balance
sheet liabilities, an increase of 0.1 percentage points. The increase was driven by higher net
earnings for the period in the amount of EUR 131.4 million and other comprehensive income in
the amount of EUR 6.3 million, while dividend payments reduced it by EUR 39.7 million. The
parent company's controlling interests increased by 11% to EUR 984.9 million and non-
controlling interests (due to the positive net earnings attributable to non-controlling interests
for the period) rose by 13% to EUR 4.2 million. The share capital of EUR 73.7 million remained
unchanged and was divided into 22,735,148 ordinary shares.
Zavarovalnica Triglav's total equity
increased by 9% and amounted to EUR 741.6 million.
Net earnings for the year
disclosed in the Group's balance sheet amounted to EUR 75.0 million
and, due to the allocation of part of net earnings to other reserves from profit, were EUR 55.8
million lower than net earnings disclosed in the statement of profit or loss.
The Group's comprehensive income after tax
amounted to EUR 137.7 million (2023: EUR 50.9
million) and the parent company's to EUR 98.9 million (2023: EUR 47.5 million).
93
8.1
Non-Life segment
The Non-Life segment delivered strong performance, with a favourable combined ratio of 94%
in the insurance segment and an investment result that tripled compared to the previous year.
Performance results of the Non-Life segment of the Triglav Group
2024
2023
Index
Total business volume
1,304,374,331
1,177,658,738
111
Gross written insurance premium
1,274,332,716
1,152,716,491
111
Other income
30,041,614
24,942,247
120
Total revenue
1,186,349,643
1,067,589,161
111
Insurance operating result
69,084,585
3,641,356
1,897
Insurance revenue
1,156,299,596
1,042,646,914
111
Claims incurred
627,530,982
769,196,929
82
Acquisition and administrative costs including non-attributable costs
304,338,440
290,661,755
105
Net reinsurance service result
–139,958,713
29,702,036
Net other insurance revenue and expenses
–15,386,876
–8,848,910
174
Net investment result
32,865,549
11,039,199
298
Result from non-insurance operations
–1,118,837
–132,442
Earnings before tax
100,831,298
14,548,113
693
Combined ratio
94.0%
99.7%
–5.6 p.p.
CSM of new contracts/Total CSM
53.3%
38.0%
15.4 p.p.
Insurance service expenses to insurance revenue
26.3%
27.9%
–1.6 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
14,441,155
16,697,354
86
Risk adjustment (RA)
33,191,759
30,151,066
110
Net insurance contract liabilities
1,035,308,308
975,608,503
106
Net reinsurance contract assets
287,403,984
320,755,400
90
The total business volume
of the Non-Life segment amounted to EUR 1,304.4 million, up by 11%.
Gross written premium
in the Non-Life segment grew at the same rate. In the Slovenian market,
premium grew by 7%, in the international market by 21% and in other markets of the Adria
region by 6%. Premium growth was achieved in most markets in the Adria region, with the
exception of Bosnia and Herzegovina (index 93), where the decline in premium resulted from
ownership consolidation and business optimisation, and Croatia (index 99), where the decline in
premium was due to portfolio restructuring (index 99). High growth was recorded in non-life
insurance premium in Serbia through the acquisition of new policyholders and the expansion of
the scope of insurance coverage with existing policyholders. Premium growth was recorded in
most non-life insurance groups, with the exception of other non-life insurance (a decrease in
marine insurance premium due to a different accounting method at the parent company and
the termination of cooperation with an agency in Croatia). The highest growth was seen in real
property insurance (fire and natural disaster insurance and other damage to property insurance)
and motor vehicle insurance.
Total revenue
of the Non-Life segment amounted to EUR 1,186.3
million, up by 11%. The increase was mostly influenced by the growth in insurance revenue due
to higher insurance coverage, the impact of past premium rate rises on premium increases and
the growth of insurance sales under the principle of free movement of services (FOS). In FOS
transactions, the highest premium volume was recorded in motor vehicle insurance for
individuals in Poland (EUR 56.3 million), reflecting a significant growth of 90%.
Non-Life insurance
claims incurred
, which comprise insurance service expenses for claims, the
change in cash flows, the change in experience correction and the effects of allocation to
onerous contracts, decreased by 18% to EUR 627.5 million at Group level and by 26% to EUR
396.4 million at the parent company. Insurance service expenses for claims, amounting to EUR
94
642.6 million, were 20% lower. The decrease in claims incurred was primarily driven by the very
high CAT claims last year, alongside relatively favourable claims development.
The Group's
Non-Life segment's insurance operating result
amounted to EUR 69.1 million (2023:
EUR 3.6 million). Influenced by an 11% increase in insurance revenue and a 28% decrease in
claims incurred. Acquisition costs, administrative costs and non-attributable costs were 5%
higher at EUR 304.3 million. The net reinsurance service result amounted to EUR –140.0 million
(2023: EUR 29.7 million), predominantly resulting from lower reinsurance income (index 44) as
a result of lower new claims ceded to reinsurance in 2024. Due to the increased business volume
and slightly poorer reinsurance conditions, reinsurance expenses increased (index 107).
The net
investment result
grew to EUR 32.9 million (index 298), mainly due to an increase in investment
result (index 212) and gains on disposal of a participating interest in an associate (EUR 4.7
million).
The result from non-insurance operations
was negative at EUR –1.1 million, primarily
due to higher interest payments on bonds issued and the impairment of past-due receivables.
Earnings before tax of the Non-Life segment
reached EUR 100.8 million, compared to EUR 14.5
million in the previous year.
The combined ratio
for the Non-Life segment
stood at favourable 94.0%, down by 5.6 percentage
points year-on-year. Its improvement was driven by higher insurance revenue and lower claims
incurred. The claims ratio and the expense ratio improved by 4.6 percentage points and 1.1
percentage points respectively.
Performance results of the Non-Life segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
880,069,706
784,928,919
112
Gross written insurance premium
866,712,583
773,815,847
112
Other income
13,357,123
11,113,072
120
Total revenue
824,375,017
720,307,430
114
Insurance operating result
54,508,347
1,493,091
3,651
Insurance revenue
811,017,894
709,194,358
114
Claims incurred
396,432,489
537,393,087
74
Acquisition and administrative costs including non-attributable costs
215,478,525
203,541,839
106
Net reinsurance service result
–130,046,609
39,447,646
Net other insurance revenue and expenses
–14,551,924
–6,213,987
234
Net investment result
24,947,939
19,420,462
128
Result from non-insurance operations
–1,389,929
590,787
Earnings before tax
78,066,357
21,504,340
363
Combined ratio
93.3%
99.8%
–6.5 p.p.
CSM of new contracts/Total CSM
57.4%
39.4%
18.0 p.p.
Insurance service expenses to insurance revenue
26.6%
28.7%
–2.1 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
13,420,019
15,732,207
85
Risk adjustment (RA)
15,135,083
11,724,267
129
Net insurance contract liabilities
688,541,300
687,817,381
100
Net reinsurance contract assets
249,027,855
305,976,870
81
95
8.2
Life segment
The Life segment also delivered strong performance. Favourable trends were observed in the
insurance segment and were particularly pronounced in the investment segment, which also
benefited from favourable financial market conditions.
Performance results of the Life segment of the Triglav Group
2024
2023
Index
Total business volume
244,566,606
229,456,362
107
Gross written insurance premium
242,588,054
228,358,676
106
Other income
1,978,552
1,097,686
180
Total revenue
100,265,726
86,226,995
116
Insurance operating result
19,804,608
16,684,632
119
Insurance revenue
98,399,942
85,367,869
115
Claims incurred
27,161,982
25,603,176
106
Acquisition and administrative costs including non-attributable costs
48,590,117
42,030,166
116
Net reinsurance service result
272,006
1,619,193
17
Net other insurance revenue and expenses
–3,115,241
–2,669,088
117
Net investment result
10,523,083
1,942,121
542
Result from non-insurance operations
9,987
317,352
3
Earnings before tax
30,337,678
18,944,105
160
CSM of new contracts/Total CSM
15.1%
16.2%
–1.1 p.p.
New business margin
13.4%
14.6%
–1.2 p.p.
Contractual service margin sustainability
1.1
1.2
92
Insurance service expenses to insurance revenue
49.4%
49.2%
0.1 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
272,164,764
221,656,867
123
Risk adjustment (RA)
32,489,424
33,264,554
98
Net insurance contract liabilities
1,404,899,162
1,305,706,187
108
Net reinsurance contract assets
346,996
384,510
90
The Life segment includes life insurance business of insurance companies and non-insurance companies supporting this business
(Triglav Svetovanje; Triglav Savjetovanje, Sarajevo; Triglav Savetovanje, Belgrade, in liquidation, and Triglav Savjetovanje, Zagreb, in
liquidation). This segment's result also takes into account the investment portion of related own insurance portfolios.
The total business volume
amounted to EUR 244.6 million, a 7% increase year-on-year.
Gross
written premium
was up by 6%, with premium growth seen in all insurance markets. An 11%
growth was seen in unit-linked life insurance, primarily as a result of higher premium payments
at the parent company and the North Macedonian life insurer.
Total revenue
rose by 16%, driven
by a 15% rise in insurance revenue and strong growth in other income (index 217).
The insurance operating result
increased by 19% to EUR 19.8 million. It was mainly driven by
higher
insurance revenue
due to the higher release of contractual service margin, risk premium
and expected claims.
Claims incurred
, which in addition to insurance service expenses for claims
comprise the change in cash flows, the change in experience correction, the effects of allocation
to onerous contracts and other insurance expenses, increased by 6% at Group level and by 5% at
the parent company; they amounted to EUR 27.2 million at Group level and EUR 17.6 million at
the parent company. Their increase was mainly influenced by higher insurance service expenses
for claims and the effects of the loss of onerous contracts.
The investment result before tax
of the Life segment increased to EUR 10.5 million (index 542).
The investment result rose to EUR 121.1 million (index 182), mainly due to higher interest
income and strong growth in equity investments, while the negative financial result from
insurance contracts of EUR –110. 6 million (index 171) was primarily driven by higher financial
96
expenses due to an increase in unit-linked insurance liabilities.
The result from non-insurance
operations
amounted to EUR 10 thousand (2023: EUR 317 thousand).
Earnings before tax of the
Life segment at Group level
amounted to EUR 30.3 million (index 160).
Earnings before tax of the Company's Life segment
rose to EUR 26.2 million (2023: EUR 19.3
million).
The insurance operating result
grew to EUR 18.4 million (index 124), primarily due to
the higher release of both the contractual service margin and risk adjustment.
The net
investment result
increased to EUR 7.6 million year-on-year (2023: EUR 4.1 million).
The Group's CSM of new life insurance contracts
amounted to EUR 41.1 million, of which 42%
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 15.1%, down by 1.1
percentage points year-on-year. This decline was driven by changes in expected cash flows
affecting the total contractual service margin and the reinsurance calculation for life insurance
at the parent company, in accordance with IFRS 17. The release of the contractual service margin
to profit or loss amounted to EUR 36.6 million compared to EUR 29.4 million in 2023.
In 2024,
the new business margin
of the Group's Life segment stood at 13.4%, down 1.2
percentage points from the previous year, predominantly due to a lower CSM of new contracts
at the North Macedonian life insurer.
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 1.1 in 2024 and 1.2 in 2023.
The contractual service margin
of the Group's life insurance contracts increased by EUR 50.5
million and totalled EUR 272.2 million as at 31 December 2024. 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 4.5 million, the increase in other changes of EUR
2.5 million and the positive changes in expected cash flows of EUR 43.5 million due to the change
in assumptions. The majority of the increase is attributable to the parent company (see note
below).
Movement in the Triglav Group's CSM in the Life segment in 2024 (EUR million)
221.7
272.2
41.1
43.5
-36.6
2.5
31 Dec 2023
CSM of new
contracts
Change in
expetcted cash
flows
Release of the CSM
to profit or loss
Other
31 Dec 2024
97
Performance results of the Life segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
195,443,569
192,632,794
101
Gross written insurance premium
194,421,298
186,343,262
104
Other income
1,022,271
6,289,532
16
Total revenue
77,469,581
67,026,807
116
Insurance operating result
18,431,324
14,833,611
124
Insurance revenue
76,553,208
66,444,361
115
Claims incurred
17,639,863
16,759,427
105
Acquisition and administrative costs including non-attributable costs
37,076,869
32,725,253
113
Net reinsurance service result
–105,762
0
Net other insurance revenue and expenses
–3,299,390
–2,126,070
155
Net investment result
7,642,237
4,059,745
188
Result from non-insurance operations
172,324
384,007
45
Earnings before tax
26,245,885
19,277,364
136
CSM of new contracts/Total CSM
13.0%
12.6%
0.4 p.p.
New business margin
14.6%
13.9%
0.7 p.p.
Contractual service margin sustainability
1.0
1.0
101
Insurance service expenses to insurance revenue
48.4%
49.3%
–0.8 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
257,806,279
209,642,299
123
Risk adjustment (RA)
29,240,452
31,137,721
94
Net insurance contract liabilities
1,272,022,364
1,186,898,681
107
Net reinsurance contract assets
-8,336
0
The Company's CSM of new contracts
amounted to EUR 33.5 million (index 127). The CSM of
new contracts in total contractual service margin was 13.0%, up by 0.4 percentage points year-
on-year. The release of the contractual service margin to profit or loss was also higher,
amounting to EUR 32.6 million (index 125).
As at the reporting date,
the Company's contractual service margin
stood at EUR 257.8 million,
23% higher than the previous year. This increase stemmed from a positive change in expected
cash flows of EUR 45.1 million, driven by revised assumptions about future business based on
business decisions taken and a more favourable development of insurance portfolios than
previously anticipated. The increase due to other changes amounted to EUR 2.2 million. The
difference between the CSM of new contracts and the release of the CSM to profit or loss
positively impacted the contractual service margin by EUR 0.9 million.
The Company's new business margin
grew by 0.7 percentage points to 14.6%. This resulted from
the higher profitability of new underwritten contracts, taking into account future increases in
sums insured and written premium at the time of indexation.
The Company's contractual service
margin sustainability
reached 1.0, the same as the previous year.
98
Movement in Zavarovalnica Triglav's CSM in the Life segment in 2024 (EUR million)
8.3
Health segment
The strong performance of the Health segment in 2024 was influenced by one-off events. As part
of the business model revision in Slovenia and efforts to drive premium growth, enhance claims
management and optimise costs, Triglav, Zdravstvena zavarovalnica was merged into the parent
company. The Group's key strategic guidelines and ambitions for this segment remain
unchanged, as it continues to be a key development segment.
Performance results of the Health segment of the Triglav Group
2024
2023
Index
Total business volume
56,223,031
223,036,915
25
Gross written insurance premium
44,336,316
222,799,228
20
Other income
11,886,715
237,687
5,001
Total revenue
55,139,550
223,409,569
25
Insurance operating result
8,620,876
–27,377,596
Insurance revenue
43,252,835
223,171,882
19
State compensation pursuant to the Decree on supplemental health
insurance premium
10,996,355
0
Claims incurred
23,996,976
226,446,868
11
Acquisition and administrative costs including non-attributable costs
18,007,025
25,319,883
71
Net reinsurance service result
–1,244,211
285,341
Net other insurance revenue and expenses
–2,380,102
931,932
Net investment result
1,247,919
–2,945,661
Result from non-insurance operations
472,074
–1,089,949
Earnings before tax
10,340,868
–31,413,206
Combined ratio
84.1%
112.3%
–28.2 p.p.
CSM of new contracts/Total CSM
11.1%
31.3%
–20.3 p.p.
Insurance service expenses to insurance revenue
41.6%
11.3%
30.3 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
212,799
92,661
230
Risk adjustment (RA)
533,650
5,593,595
10
Net insurance contract liabilities
13,449,389
37,239,036
36
Net reinsurance contract assets
–295,163
132,645
209.6
257.8
33.5
45.1
-32.6
2.2
31 Dec 2023
CSM of new
contracts
Change in
expetcted cash
flows
Release of the CSM
to profit or loss
Other
31 Dec 2024
99
The Health segment includes the health insurance products sold by the Group insurance companies and the non-insurance company
complementing this business (Triglav zdravje asistenca). The segment presentation also includes the investment portion of the
Health segment's own insurance portfolios.
In 2023, supplemental health insurance, which was also provided by the Triglav Group, was
terminated in Slovenia. In Slovenia and other markets in the Adria region, complementary health
insurance is being maintained and strengthened. The Group's non-consolidated complementary
health insurance premium grew by 37% to EUR 43.1 million in 2024 (shown by insurance
company in the table below).
Non-consolidated complementary health insurance premium of the Triglav Group by market
2024
2023
Index
Slovenia
22,642,006
16,899,914
134
Serbia
11,373,915
7,863,869
145
North Macedonia
3,587,856
2,546,503
141
Croatia
3,129,285
1,952,265
160
Montenegro
1,533,082
1,335,865
115
Bosnia and Herzegovina
839,534
890,171
94
Total
43,105,678
31,488,587
137
The total business volume
of the Health segment decreased to EUR 56.2 million (2023: EUR 223.0
million) due to the termination of supplemental health insurance, as already mentioned.
Gross
written premium
also recorded a sharp decline, with supplemental health insurance accounting
for 85% of the health insurer's written premium. The increase in other income was impacted by
state compensation pursuant to the Decree on setting the maximum price of the supplemental
health insurance premium.
Earnings before tax
of the Health segment totalled EUR 10.3 million (EUR 16.1 million relates to
discontinued operations), while last year they were negative at EUR –31.4 million (EUR –27.8
million relates to discontinued operations).
The insurance operating result
amounted to EUR 8.6
million (2023: EUR –27.4 million), influenced by the release of the provisions for supplemental
health insurance (EUR 6.4 million) and by the state compensation under the Decree on setting
the maximum price of the supplemental health insurance premium (EUR 11.0 million). Insurance
revenue and claims incurred were significantly lower than the previous year due to the
termination of supplemental health insurance.
The net investment result
improved compared
to the previous year and amounted to EUR 1.2 million (2023: EUR –2.9 million), while
the result
from non-insurance operations
reached EUR 472 thousand. As a result of these effects,
the
combined ratio for the Health segment
declined by 28.2 percentage points to 84.1% year-on-
year. Excluding the impact of discontinued operations, the combined ratio would be 117.8% in
2024 and 108.7% the year before. The combined ratio is expected to normalise in the future.
100
Performance results of the Health segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
34,490,283
209,131,710
16
Gross written insurance premium
22,885,016
207,957,286
11
Other income
11,605,267
1,174,424
988
Total revenue
35,137,987
211,131,568
17
Insurance operating result
11,434,413
–26,902,903
Insurance revenue
23,532,720
209,957,144
11
State compensation pursuant to the Decree on supplemental health
insurance premium
10,996,355
0
Claims incurred
6,717,258
215,862,604
3
Acquisition and administrative costs including non-attributable costs
13,492,574
21,070,944
64
Net reinsurance service result
–504,728
81,814
Net other insurance revenue and expenses
–2,380,102
–8,312
Net investment result
1,175,208
–2,957,549
Result from non-insurance operations
533,887
282,151
189
Earnings before tax
13,143,508
–29,578,301
Combined ratio
66.9%
112.8%
–45.9 p.p.
CSM of new contracts/Total CSM
11.1%
31.3%
–20.3 p.p.
Insurance service expenses to insurance revenue
57.3%
10.0%
47.3 p.p.
31 Dec 2024
31 Dec 2023
Index
Contractual service margin (CSM)
212,799
92,661
230
Risk adjustment (RA)
432,808
5,454,294
8
Net insurance contract liabilities
7,617,888
34,274,848
22
Net reinsurance contract assets
12,090
959,820
1
8.4
Asset Management
Amid highly favourable financial market trends, the Asset Management segment achieved
strong performance in 2024.
The Group's total assets under management
as at 31 December 2024 amounted to EUR 5.9
billion, up by 21% year-on-year. The Group manages own funds, unit-linked insurance assets and
financial contract assets in the total amount of EUR 3.9 billion (index 115) in its companies. In
addition, the Group manages assets in mutual funds and discretionary mandate assets, as well
as assets in pension funds and alternative investments, in the total amount of EUR 2.0 billion
(index 137).
101
Asset management of the Triglav Group as at 31 December 2024 and 31 December 2023
2
Assets under management
Index
31 Dec 2024
31 Dec 2023
2024/2023
Own insurance portfolio (1)
2,487,714,381
2,207,612,126
113
Unit-linked life insurance assets (2)
678,910,235
540,890,478
126
Financial instruments from financial contracts (3)
739,510,939
650,042,171
114
Total (1+2+3)
3,906,135,555
3,398,544,775
115
Assets under management – Triglav Skladi (4)*
1,628,351,605
1,194,176,397
136
Assets under management – Triglav penzisko društvo, Skopje (5)
208,952,512
143,067,579
146
Assets under management – Triglav Fondovi, Sarajevo (6)
9,801,044
6,073,641
161
Total (4+5+6)
1,847,105,161
1,343,317,617
138
Assets under management – Trigal (7)**
117,412,162
91,237,169
129
Assets under management – Evropski dobrovoljni penzijski fond, Banja Luka (8)
23,129,461
18,297,531
126
Total (7+8)
140,541,623
109,534,700
128
Total
5,893,782,338
4,851,397,092
121
* 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.
Performance results of the Asset Management segment of the Triglav Group
2024
2023
Index
Total business volume
112,462,118
107,798,240
104
Total revenue
51,454,450
47,991,031
107
Operating result
13,177,336
6,785,169
194
Income from asset management
49,364,063
39,685,487
124
Net other income and expenses
230,427
–1,631,210
Operating expenses
36,417,154
31,269,108
116
Net investment result
4,355,021
12,196,256
36
Earnings before tax
17,532,357
18,981,425
92
Expenses to asset management income ratio
73.8%
78.8%
–5.0 pp
The asset management activity at the Triglav Group comprises the management of the parent company's own insurance portfolios
(assets backing liabilities and guarantee funds), clients' pension savings through the insurance services of the Group's insurance and
pension companies, the management of clients' assets in mutual funds and discretionary mandate assets by asset management
companies and alternative investment management. The assets shown below therefore refer to the Group's total assets under
management. As the investment results of own insurance portfolios are taken into account in the insurance segments, the asset
management segment includes clients' pension saving through the insurance services of the Group's insurance and pension
companies, asset management and the management of clients' assets in mutual funds and discretionary mandate assets in the
aforementioned companies.
The Group's
total business volume
of the Asset Management segment grew by 4% to EUR 112.5
million. The supplemental pension insurance premium (EUR 61.0 million) increased by 2%,
mainly due to a higher average monthly paid-in premium at the pension company. Income from
asset management (EUR 49.4 million) rose by 24%, whereas other income (EUR 2.1 million) was
lower due to the lower impact of the change in provisions for not achieving the guaranteed yield.
Income from asset management
comprises income from fees, which increased in all companies,
with the highest relative growth recorded in the Macedonian company Triglav penzisko društvo
(index 140) and Triglav Skladi (27%).
The operating result
amounted to EUR 13.2 million (index 194) due to higher income from asset
management and higher net other income.
The net investment result
amounted to EUR 4.4
million, compared to EUR 12.2 million in the previous year. The positive impact of the change in
provisions for not achieving the guaranteed yield was EUR 0.9 million in 2024, compared to EUR
8.1 million in the previous year.
Earnings before tax of the Asset Management segment
reached
2
SASB: FN-AC-000.A.
102
EUR 17.5 million, down by 8% year-on-year. Excluding the impact of the change in provisions for
not achieving the guaranteed yield, earnings before tax growth would have exceeded 50%.
Performance results of the Asset Management segment of Zavarovalnica Triglav
2024
2023
Index
Total business volume
24,136,050
28,936,738
83
Total revenue
3,330,423
7,383,565
45
Operating result
128,709
223,720
58
Income from asset management
3,158,050
2,854,726
111
Net other income and expenses
–147,417
194,800
Operating expenses
2,881,923
2,825,806
102
Net investment result
0
4,334,041
0
Earnings before tax
128,710
4,557,761
3
Expenses to asset management income ratio
91.3%
99.0%
–7.7 p.p.
The Company's income from asset management relating to the management of supplemental
pension insurance premium (financial contract assets and liabilities) increased by 11% to EUR 3.2
million, while the decrease in total revenue and total business volume was largely due to the
change in provisions for not achieving the guaranteed yield, which amounted to EUR 4.3 million
in 2023. This also led to lower earnings before tax of EUR 129 thousand in the Asset Management
segment, compared to EUR 4.6 million the previous year.
Management of assets and investment funds
Triglav Skladi
is the Group's core asset management company, with assets under management
of EUR 2.3 billion as at 31 December 2024, up by 33% relative to 31 December 2023 (EUR 1.7
billion). In 2024, the company revised its product range and now offers 12 distinct investment
policies within mutual funds, including a money market fund, a bond fund, a flexible fund, a
mixed fund and equity funds. As at 31 December 2024, the company managed the portfolio of
110,000 investors worth
EUR 1.9 billion in mutual funds
. The value of net assets under
management rose by 29% due to net inflows of EUR 138.2 million, effective management and
favourable trends in the capital markets (EUR 294.8 million).
Discretionary mandate assets
amounted to EUR 336.1 million as at 31 December 2024,
a 61% increase year-on-year
. Net
inflows amounted to EUR 59.8 million, while the favourable effects of capital markets increased
net asset value by EUR 68.0 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.
The integration of environmental, social and governance (ESG) aspects
into asset management is reported in more detail in Section
10. Sustainability Report
.
Triglav Fondovi, Sarajevo
manages two open-end investment funds (OIF Triglav Obveznički and
OIF Triglav Globalni dionički). Both funds recorded net inflows of EUR 3.0 million in 2024.
103
Movement in net assets under management
Net asset value of assets under
management
Net inflow
Net market
31 Dec 2024
31 Dec 2023
Change
impact
impact
Triglav Skladi
2,260,084,264
1,699,308,044
560,776,220
197,915,973
362,860,247
- mutual funds
1,923,993,403
1,490,992,587
433,000,816
138,162,449
294,838,367
- discretionary mandate assets
336,090,861
208,315,457
127,775,404
59,753,524
68,021,880
Triglav Fondovi, Sarajevo
9,801,044
6,073,641
3,727,403
2,952,939
774,464
Total
2,269,885,308
1,705,381,685
564,503,623
200,868,912
363,634,711
Active ownership
3
An active ownership role in the investment process is essential for promoting improved business
policies and practices among issuers of financial instruments, contributing to their long-term
success. Triglav Skladi exercises this role in line with its Sustainable Investment Policy by
engaging with issuers on business, financial, environmental, social and governance matters and
exercising the rights associated with financial instruments. This includes active participation in
issuers' meetings, voting and proposing agenda items to support responsible and sustainable
investment management.
8.5
Investment in own-use real property and equipment
The Group invested EUR 10.1 million (index 135) in property, plant and equipment and EUR 12.7
million (index 92) in intangible assets (software and property rights). The Company invested EUR
4.4 million (index 88) in property, plant and equipment and EUR 8.7 million (index 86) in
intangible fixed assets. See Section
3.7.1 of the Accounting Report
for more information on
property, plant and equipment and
Section 3.7.4 of the Accounting Report
for more information
on intangible assets.
The value of own-use real property is enhanced through active management and prudent
investment. This involves optimising utilisation, increasing functionality and improving energy
efficiency through energy renovation. Based on minimum standards for flexible arrangement of
workplace and points of sale, the Group aligns with international best practices to modernise
and enhance operational efficiency. As part of implementing the space use optimisation project
under the adopted 2021–2025 plan, the following objectives are pursued:
▪
To provide employees with a modern business environment and the right conditions for new
ways of working (hybrid workplaces), and to provide clients with an outstanding and
comfortable user experience (e.g. remote transacting); and
▪
To achieve lasting effects by rationalising operating expenses and maintenance costs while
maintaining the quality of the space.
In the coming years, office space will be optimised for internal activities, while further
digitalisation and automation of processes will enhance efficiency and improve the user
experience in online underwriting and remote claims reporting. Alongside the planned
optimisation of space usage in larger business units, the number of branch offices is being
adjusted as physical points of contact for clients. The optimisation measures are expected to free
up at least 3,000m
2
of space by the end of 2026, reducing operating expenses and maintenance
costs, thus contributing significantly to reducing the Group's carbon footprint.
3
SASB: FN-AC-410a.3.
104
A
hybrid workspace
pilot project was implemented to create a more modern and flexible
workplace. By the end of 2024, around 300 employees of the parent company had participated,
with the project set to continue in the coming years.
Real property management software was upgraded with investment management and cost
management functionalities, along with enhancements to energy accounting.
The largest portion of software investment was allocated to the development and upgrade of
core underwriting applications, acquisition of licenses for various business and support
applications, the development of mobile applications and digital channels, and the expansion of
the data warehouse.
Investment in personal computing equipment enhances productivity and the user experience
while minimising technical issues and maintenance requirements. Upgrades to server
infrastructure increase capacity for hosting core and support applications, improving availability
and reducing the risk of downtime that could disrupt business operations. Investment in
communications equipment also strengthens network security, providing greater protection
against cyber threats.
105
9.
Risk management
-
The Triglav Group performed well, maintaining good capital strength and liquidity, as
confirmed by the re-affirmed "A" credit ratings. S&P Global upgraded its medium-term
outlook from stable to positive.
-
Capital adequacy benefited from the successful issue of a new subordinated bond.
-
Adaptation to the macroeconomic environment continued, with a prudent assumption of
underwriting risks and maintenance of an optimal level of market risks.
-
Planned asset-liability matching was ensured while risks were mitigated through
appropriate diversification.
-
Development activities focused on upgrading sustainability risk management and
strengthening the information security risk management system.
-
The establishment of the Risk Committee of Zavarovalnica Triglav's Supervisory Board
further reinforced the importance and role of the risk management system at Group level.
The Triglav Group was well-capitalised in 2024. The increase in own funds to cover the solvency
capital requirement was significantly influenced by the issuance of a new subordinated bond
(see Section
6.7 Bonds
for more information). The outlined dividend policy was followed,
achieving a high capital adequacy ratio of 219% at the year-end, despite changes in the
macroeconomic environment and financial markets. The Group's adequate capital strength was
reaffirmed by AM Best, which assigned a long-term credit rating of "A", and S&P Global, which
assigned a financial strength rating of "A". The latter upgraded the Group's medium-term
outlook on its "A" rating from stable to positive in December 2024. See Section
6.6 Credit rating
of the Triglav Group and Zavarovalnica Triglav
for more information.
Although inflation gradually eased throughout the year and central banks cut key interest rates,
economic growth remained low. These conditions mainly affected market and underwriting
risks. In assuming and managing these risks, the focus remained on adapting to the
macroeconomic and financial market situation.
The Group carried out key risk management development activities
at the business line level,
where opportunities for improvement were identified or responses to external circumstances
were required.
▪
In
capital management
, upgrades were made through a bridging analysis, providing a
comprehensive explanation of the differences between the valuation of insurance technical
provisions for solvency and financial statement purposes.
▪
In the context of
market risks
, several upgrades were made to measurement and monitoring
methodologies.
▪
Non-Life underwriting risk
monitoring and analysis were upgraded, and additional
monitoring of certain types of exposures at Group level was also implemented.
▪
In the context of
credit risk
management, the approach to managing risks arising from
inward and outward reinsurance contracts was upgraded. The process of obtaining
reinsurance partner ratings was also upgraded, further improving the quality of the data.
▪
With regard to
liquidity risk
, the existing methodology for calculating risk indicators was
refined.
▪
In
operational risk
management, methodologies and exposure assessments for key business
processes were updated, particularly with respect to outsourcing and information security
risks.
▪
In
non-financial risk
management, the management of reputational risk was upgraded.
Sustainability risk
management was also revised, particularly with regard to transition risk
due to climate change, with updates to measurement methods. For the first time, an
106
analysis was conducted on the exposure of the insurance and investment portfolios to
biodiversity risks.
For all remaining risks, efforts focused on maintaining established systems and processes.
The
risk management
system
at Group level
was systematically upgraded by consistently
monitoring all material risks.
9.1
Risk management system
The risk management system is key to achieving the Group's strategic and business objectives.
It is implemented at Group level as a set of harmonised rules, powers and responsibilities, clearly
delineated by business function and organisational level. The system defines and integrates
processes for the continuous identification, assessment, monitoring and management of
assumed, potential and 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 main document – Group Risk Appetite Statement. The system is
maintained up-to-date and comprehensive through continuous upgrades and updates. In
subsidiaries, the system is aligned with the standards and rules of the parent company, taking
into account the principle of proportionality.
9.1.1
Powers and responsibilities
The system of powers and responsibilities in risk management
is based on the "three lines of
defence" model
.
The Management Board and Supervisory Board
have 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 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. Actual
risks are actively managed within the limits of acceptable or allowed exposure.
107
The decision-making bodies participating in the integrated corporate risk management process
and the three lines of defence
Supervisory Board and Risk committee
Management Board
1.
First line of defence
Risk underwriting
2.
Second line of defence
Risk management
3.
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 decision-making bodies and
key functions
of the governance system that are organised as independent organisational units
. The second
line of defence includes the relevant risk management committees and key functions: the risk
management function, the non-life and life insurance actuarial functions, and the compliance
function. The internal audit function, providing independent supervision of the system, is part
of the third line of defence. 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 and accountable for the development and
effective operation of the risk management system, in line with the Management Board's
guidance. It monitors the overall risk profile, identifies and assesses emerging risks, coordinates
and calculates capital requirements, and assesses capital adequacy using the regulatory method
and other capital models. It also conducts the own risk and solvency assessment process and
prepares other regulatory reports, such as the Solvency and Financial Condition Report and the
Regular Supervisory Report.
108
The compliance function
monitors the compliance of the Company's operations with the
applicable regulations and commitments within the internal control system. It monitors and
assesses the impacts of the changed legal environment and compliance risks. As part of its
duties, it reviews and advises on the adequacy and effectiveness of procedures and measures to
ensure compliance. It also 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, on which it regularly reports to the Management Board and
the Supervisory Board. In addition, the compliance function plays a major role in ensuring fair
and transparent operations.
The actuarial function
coordinates and implements the calculation of insurance technical
provisions, applying appropriate methods, models and assumptions, while ensuring the use of
comprehensive, high-quality data. It also calculates and coordinates capital requirements for
underwriting risks. A key task of the function is to verify the adequacy of the overall
underwriting and reinsurance policies and to provide an opinion on whether the amount of the
premium of individual products is sufficient to cover all the liabilities arising from insurance
contracts. The function also participates in the own risk and solvency assessment and reports
its significant findings to the Management Board and the Supervisory Board. Within the Group,
the actuarial function operates separately for non-life and life insurance.
The internal audit function
provides regular and comprehensive oversight of the Company's
operations. It ensures a systematic and planned review of operations, assessing their adequacy
and effectiveness. Its tasks include overseeing risk management and control procedures. The
function also makes recommendations for improvements and ensures the quality and
continuous development of internal audit. It cooperates with external auditors and other
supervisory bodies, as well as monitors the implementation of their recommendations. It also
participates in internal audits in other Group companies.
All key functions are in charge of not only transferring know-how and best practices to Group
subsidiaries but also of ensuring their harmonised operation.
The second line of defence of the risk management system includes
committees
that support
the Management Board by monitoring risks on a regular basis, reporting to the Management
Board on actions taken to address them, and informing the Management Board of their work.
109
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 and
▪
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
▪
maximum net retention tables
▪
recommendations to subsidiaries regarding the maximum permitted exposure to individual risks..
Assets and Liabilities
Committee
(ALCO)
Non-life
Underwriting
Committee
(UWC)
Operational Risk
Committee
(ORC)
Compliance and
Sustainable
Development
Committee
(CSDC)
Life Insurance
Product Forum
(LIPF)
Non-life Insurance
Product Forum
(NIPF)
Health Insurance
Product Forum
(HIPF)
Project Steering
Committee
(PSC)
Responsible for:
liquidity risk, market
risks, life insurance
underwriting and
pension risks, credit
risks of the
investment portfolio
Responsible for:
non-life
underwriting and
credit risks
Responsible for:
operational risks
Responsible for:
compliance risks,
reputational risks
and sustainability
risks
Responsible for:
life underwriting
risks
Responsible for:
non-life
underwriting risks
Responsible for:
health underwriting
risk
Responsible for:
project risks
110
Risk management is initially carried out at the level of individual companies and then
comprehensively at Group level. The management of individual Group members and the
persons in charge of risk management are responsible for the establishment and operation of
the risk management system.
The operation of the risk management system is transferred from the parent company to the
Group with minimum standards harmonised by the Triglav Group Subsidiary Management
Division, 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 key building blocks of
the comprehensive risk management process
are the Group's strategy
and the Company's business plan. These elements are used to define
the Group-level risk
appetite
for all material categories of risk that the Group is willing to assume. Additionally, this
document outlines the key indicators for measuring and monitoring these risks, including their
target and maximum values. Zero tolerance is established for all risks the Group is unwilling to
assume. One of the key indicators for measuring business performance and the achievement of
strategic objectives is the
capital adequacy ratio
.
The risk management process
consists of risk identification, assessment or measurement,
management, monitoring and reporting.
Risk identification
is an ongoing process involving business functions at all levels. It is normally
carried out once a year 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. The result of the individual
risk assessments shows how much own funds would decrease in a 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
111
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.
In the
risk management
process, the target values or limits for assumed and potential risks are
defined and must be complied with when assuming these risks. The Company employs well-
established multi-level risk monitoring systems to efficiently identify potential risk increases.
These trends are identified through processes at the business line level and regularly
communicated to the relevant persons by key functions. At Group level, exposure concentration
and heightened volatility for risks associated with the Group's major vulnerabilities are closely
monitored. 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 current risk profile
and the defined risk appetite. The findings are reviewed by the Risk Management Committee,
which approves appropriate measures to address any detected deviations. The Committee's
findings and actions are regularly
reported
to the Management Board, the Supervisory Board
and its Risk Committee.
Risk management also encompasses the
own risk and solvency assessment process
, which
includes assessing solvency requirements. The appropriateness of the regulatory method is also
evaluated
by
incorporating
findings
from
the
internal
risk
assessment
method.
A
comprehensive analysis is conducted at least annually to determine the regulatory method's
suitability.
As part of the own risk and solvency assessment process, the appropriateness of the strategic
guidelines is assessed in terms of ensuring capital adequacy. Measures are planned to maintain
the Group's capital adequacy ratio within the target range of 200–250%. The appropriate value
of the ratio is ensured through the capital management process. The movement of the ratio is
monitored through a set of detailed risk indicators and exposure limits across all segments of
the Group's operations. 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. Capital adequacy is also influenced by the dividend policy, which is defined in the
Capital Management Policy of the Company and the Group and is subject to capital adequacy
targets.
In the context of the own risk and solvency assessment process, the sustainability of capital
adequacy is evaluated using stress scenarios that account for existing, potential and emerging
risks, with each type of risk being assessed individually. These scenarios enable the Company to
take appropriate action, such as adjusting the guidelines for transaction acceptance, premium
rates, the limit system, risk transfer and other activities. This approach strengthens the Group's
resilience to identified risks and supports the improvement of internal control systems, while
also updating an effective strategic decision-making process.
9.1.3
Risk classification
Internal risk monitoring is conducted in accordance with the standard formula prescribed by the
Insurance Act (ZZavar-1). The methods used to manage each type of risk, along with the
exposures and the assessment of these risks, are presented in
Section 2.8 of the Accounting
Report
.
112
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. Underwriting risks are divided into
non-life
underwriting risks
(including health insurance) and
life underwriting risks
(including
pension insurance). 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 from adverse changes in the financial position, which may
result from fluctuations in the level and the volatility of market prices of assets, liabilities
and financial instruments. They 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 size and nature of the business. The risk may also arise from difficulties encountered
when the company seeks to acquire additional capital, particularly in situations requiring a
rapid capital increase and/or under adverse conditions. Capital risks also include 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. They also include
information security risks with an emphasis on cyber risks and major business interruption
events.
▪
Non-financial risks
include material strategic risks, reputational risk, Group risk and
sustainability risks. They predominantly originate from the external environment and are
closely linked to other risks, especially operational risks. Generally, they include from
several realised factors both inside and outside of the Group. Sustainability risks are also
identified and assessed through the double materiality assessment (DMA) process, in
accordance with ESRS standards. See Section
10.1.5 Double materiality assessment
for more
information.
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 not enough 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.
113
Classification of the Group's risks according to IFRS
The International Financial Reporting Standards
comprise
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 relevant
bodies and the regulator. 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 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 ongoing capital management process ensures that capital is maintained at its optimum
level and structure. Its use is optimised while also managing capital and other risks.
9.2.1
Capital management
4
A well-integrated risk management system is essential to effective management of capital and
capital risk.
Ensuring capital adequacy within the target range
allows the Group to maintain
capital that is always aligned with its risk profile and business strategy. To achieve its strategic
business development objectives and optimise its capital structure and return on equity, the
Company also issued a new subordinated bond in July 2024. This issue was part of the Group's
regular capital management and is considered in the calculation of capital adequacy. See
Section
6.7 Bonds
for more information.
The purpose of capital management is to achieve safe and profitable operations, as well as a
long-term and stable return on investment, by paying out dividends based on the criteria in the
dividend policy. When entering into transactions, profitability is consistently assessed in
relation to the risks assumed. This ensures the Group's target capital adequacy while providing
an appropriate return to shareholders.
4
SASB: FN-IN-550a.3
114
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. While maintaining regular capital adequacy, the existing level of
capital and its future adequacy are planned and assessed.
Capital adequacy also has a significant impact on the Group's credit rating. Therefore, when
making business decisions, the criteria of the models of major credit rating agencies are taken
into account. The Group's capital model is assessed by the credit rating agencies S&P Global and
AM Best. See Section
6.6 Credit rating of the Triglav Group and Zavarovalnica Triglav
for more
information on the credit rating.
9.2.2
Capital adequacy and the risk profile in 2024
Effective capital management enhances the Group's operations, enabling it to make the right
decisions and maintain its competitive edge.
115
Explanation of differences in capital valuation in the balance sheet for solvency and financial
reporting purposes for the Triglav Group as at 31 December 2024 (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 2024 are described in
the Group's Solvency and Financial
Condition Report for 2024
, D and E sections, available at
www.triglav.eu.
Capital adequacy is calculated according to the Solvency II standard formula as the ratio
between eligible own funds and the solvency capital requirement. Adjustments and
simplifications are not taken into account in the calculation.
The Triglav Group was well-capitalised as at 31 December 2024. Its capital adequacy ratio stood
at 219%, within the target range, aligning with the capital management strategic objectives and
the dividend policy criteria presented in Section
9.2.1 Capital management
. The Group's
adequate capital position and resilience to potential adverse business conditions were also
confirmed by the results of the 2024 stress tests conducted for the insurance sector by the
European Insurance and Occupational Pensions Authority (EIOPA), in which the Group
participated.
Capital adequacy of the Triglav Group and Zavarovalnica Triglav
Triglav Group
Zavarovalnica Triglav
31 Dec 2024
31 Dec 2023
31 Dec 2024
31 Dec 2023
Available own funds (EUR million)
1,105.5
943.2
1,044.8
964.0
SCR (EUR million)
504.9
471.5
416.4
389.8
Capital adequacy (%)
219
200
271
247
The Group's capital adequacy was affected by the increase in own funds by EUR 162.3 million
compared to 2023. The bulk of the increase comes from the issuance of a subordinated bond in
2024, while the remainder stems from a higher reconciliation reserve. The available own funds
for 2024 reflect the expected dividend for the financial year of EUR 65.7 million, whereas those
for 2023 included an expected dividend of EUR 8.1 million. The Group's solvency capital
requirement increased by EUR 33.4 million, primarily due to higher capital requirements for
underwriting risks resulting from business volume growth.
989.0
1,047.3
1,105.5
105.6
38.0
484.5
134.7
0.9
63.7
151.2
53.4
24.0
559.7
132.1
80.7
12.4
0
400
800
1.200
Group's equity*
Intangible assets and deferred acquisition costs**
Net deferred taxes
Investments in subsidiaries and associates
Property
Financial investments
Net unit-linked insurance assets
Reinsurers' share of technical provisions
Technical provisions
Subordinated liabilities
Other assets and liabilities
Excess of assets and liabilities
Deductions for participants in other financial undertakings, and expected dividends ***
Deductibles for non-available own fund itmes
Subordinated liabilities
Group's available own funds
* Consolidation method for solvency purposes differs for Triglav Skladi, Triglav, pokojninska družba, Sarajevostan, Triglav penzisko društvo, Skopje and Triglav Fondovi.
** The fair value of intangible assets is valued at 0.
*** In this item interests in companies with sectoral rules and forseeable dividends are included.
116
At least once a year
a sensitivity analysis of
the Group's
capital adequacy ratio
is performed
to
test the effects of major changes in selected variables. Based on this analysis, the stability of the
Group's capital position and its resilience to material risk factors is assessed.
The analysis as at 31 December 2024 shows sensitivity to individual shocks on financial markets.
The sensitivity analysis of the Group's capital adequacy ratio
Among the risks included in the standard formula, the Group is most exposed to underwriting
and market risks, followed by operational and credit risks. Within the Group, the parent
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 Group.
The risk profile of the Company and the Group shows the types of risks to which they are most
exposed.
219%
222%
216%
221%
217%
212%
226%
228%
210%
222%
216%
150%
175%
200%
225%
250%
Capital adequacy ratio as at 31 Dec. 2024
Equity investments +25%
Equity investments -25%
Interest rates +50 bp
Interest rates -50 bp
Credit spreads +50 bp
Credit spreads -50 bp
Property +25%
Property -25%
Exchange rates +20%
Exchange rates -20%
117
Risk dashboard of Zavarovalnica Triglav and the Triglav Group* as at 31 December 2024
Risk
Risk
assessment
(current)
Risk trend
(future)
Note
Capital
adequacy
and capital
risk
◼
The capital adequacy of the Company and the Group remains within
the target range, as confirmed by the EIOPA stress test. The Group's
adequate capital and financial strength were reaffirmed by S&P
Global and AM Best, which assigned a long-term credit rating of "A"
and a financial strength rating of "A". S&P Global also upgraded its
medium-term outlook from stable to positive.
Underwriting
risks
◼
The assessment of underwriting risks had not changed significantly
over the past year. The growth in insurance premium resulted in a
slight increase in exposures to provision, premium and catastrophe
risks, leading to a corresponding rise in capital requirements.
Market risks
◼
The Group continues to maintain risks at defined levels. Particular
attention is given to identifying optimal investment policies, with
special focus on asset-liability matching.
Credit risks
◼
Credit
risks
remain
low
due
to
regular,
systematic
and
comprehensive exposure management. The suitability and quality of
reinsurance partners are regularly reviewed to ensure they are well-
diversified. Stress testing conducted as part of the ORSA process
confirmed the effectiveness of these measures.
Liquidity risk
◼
The
Company's
strong
liquidity
position
and
the
adequate
operational liquidity of the Group's subsidiaries are ensured through
regular liquidity monitoring. Liquidity was verified as part of the
ORSA process through internal stress tests as well as the stress test
defined by EIOPA. It was confirmed by all of them that the parent
company and its subsidiaries would have adequate liquidity even in
the event of extreme events.
Operational
risks
◼
Operational risks are managed proactively. Priority is given to the
regular maintenance and upgrading of outsourcing management
and the information security management system, with a particular
focus on cyber risks. Internal interprocess risks are also managed.
Operational risks are primarily increased by large-scale regulatory
changes and the general staffing risk when recruiting workers in
shortage occupations.
* 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.
118
Risk profile assessment* of the Triglav Group as at 31 December 2024
* 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.
As at 31 December 2024, the Group was financially stable and adequately liquid with a strong
capital base.
9.2.3
Identified future risks
The main risk in recent years has stemmed from
inflationary trends and the resulting high
interest rates
. As inflationary pressures ease, central banks have begun to cut key interest rates,
which is expected to stimulate economic growth in the future. However, the future trajectory of
interest rates and economic activity remains uncertain. This also implies future risks, particularly
the possibility of a continued period of high central bank interest rates and low economic
growth. Risks related to geopolitical uncertainty and its impact on the economic and political
environment in which the Group operates remain a key concern.
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. As
economic activity deteriorates, 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 of interest rate risk associated with possible changes
in risk-free interest rates is managed by actively matching assets and liabilities.
A more severe recession could negatively affect demand for insurance and reduce the volume
of premiums written, which would have a detrimental effect on the Group's operations. 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.
An increase in
underwriting
and
credit risks
could also affect business in the coming year. In the
context of underwriting risks, premium risks and the appropriateness of pricing policies are
consistently monitored, while provision risks are managed. To mitigate credit risks, mechanisms
for assessing the credit ratings of major partners are being strengthened, along with close
monitoring of their payment discipline. The adequacy of reinsurance protection is also carefully
assessed and adjusted where necessary.
55%
25%
8%
7%
2%
3%
57%
25%
7%
6%
2%
3%
Underwriting risks
Market risks
Operational risks
Credit risks
Risks of companies
from other financial
sectors
Risks of residual
companies
2023
2024
119
As part of testing the Group's sensitivity, the factors that could have a material impact on the
Company's and the Group's operations in the coming years were examined.
Sensitivity analysis as at 31 December 2024* (EUR)
Total impact on equity
Triglav Group
Zavarovalnica Triglav
Spread risk (+50 bp)
–34,955,884
–29,159,032
Interest rate risk (+100 bp)
–23,732,656
–18,898,646
Equity risk (–10%)
–5,921,344
–5,568,517
Property risk (–5%)
–8,834,211
–5,732,869
Total
–73,444,095
–59,359,064
* The effects shown include the tax aspect.
A sensitivity analysis shows potential impacts on the Group's capital in the case of an adverse
event with a sudden decrease in interest rates (by 100 basis points), an increase in credit spreads
(by 50 basis points), 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 73.4 million.
The sensitivity analysis of the Group's credit portfolio again confirmed that the credit ratings of
banks and reinsurers, as well as the share of insurance and subrogation claims, have a significant
impact on operations. The sensitivity analyses for the renewal rate and the suitability and
sensitivity analysis to test the appropriateness of the "probability of default" assumption
indicated a high sensitivity of the Group's portfolio to these factors.
As part of the liquidity stress scenario, sensitivity testing revealed that the Group is vulnerable
to mass policy lapse. Equally important are any declines in the value of liquid investments that
may materialise as a result of reduced liquidity or other financial market fluctuations.
120
10.
Sustainability report
10.1
General disclosures (ESRS 2)
10.1.1
Basis for preparation
The Sustainability Report is an integral part of the Annual Report. It is prepared in accordance
with the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability
Reporting Standards (ESRS) and discloses the information required by the EU Taxonomy
Regulation (Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing
Regulation (EU) 2020/852).
The consolidation level of sustainability disclosures
5
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).
However, the consolidation level of data in the 2024 Sustainability Report differs for some
disclosures from the scope of companies included in the consolidated financial statements.
Companies with no more than one employee and no office space of their own are excluded in
the carbon footprint calculation. These companies are Triglav INT d.o.o., Triglav Savetovanje
d.o.o., Beograd, u likvidaciji, Triglav Savjetovanje d.o.o., Sarajevo, Triglav Savjetovanje d.o.o.,
Zagreb, u likvidaciji, Triglav upravljanje nekretninama d.o.o., Podgorica, in Triglav upravuvanje
so nedvižen imot DOOEL, Skopje.
The Triglav Group currently includes only Zavarovalnica Triglav in reporting on financed
emissions and has not yet extended the scope of consolidation to other Group companies. The
process of including additional companies in the calculation of financed emissions is under
evaluation, taking into account methodological requirements and the availability of relevant
data. When reporting the key performance indicator related to underwriting activities based on
the requirements of the EU Taxonomy Regulation, only Zavarovalnica Triglav's gross written
premium is included in the calculation of the Triglav Group's taxonomy-alignment ratio in the
numerator. In future reporting periods, reporting will continue to be analysed and gradually
expanded in line with regulatory requirements and best practices.
Sustainability risks are managed across all (re)insurance and major financial companies within
the Group. However, for other companies within the Group companies, these risks are rendered
negligible due to their size and are therefore not actively managed.
Disclosures related to marketing activities do not include the following companies:
Zavarovalnica Triglav Re d.d., Triglav, pokojninska družba d.d., Triglav INT d.o.o., Avtoservis d.o.o.,
Triglav Svetovanje d.o.o., Upravljanje nepremičnin d.o.o., Triglav Savetovanje d.o.o., Beograd, u
likvidaciji, Triglav Osiguranje a.d., Banja Luka, Triglav Fondovi d.o.o., Sarajevo, Triglav
Savjetovanje d.o.o., Sarajevo, Autocentar BH d.o.o., Sarajevostan d.d., Triglav Savjetovanje d.o.o.,
Zagreb, u likvidaciji, Triglav upravljanje nekretninama d.o.o., Podgorica, Lovćen životna
osiguranja a.d., Podgorica, Lovćen Auto d.o.o., Podgorica, Triglav Osiguravanje život a.d., Skopje,
Triglav penzisko društvo, a.d., Skopje, in Triglav upravuvanje so nedvižen imot DOOEL, Skopje.
The information on supplier management applies to all subsidiaries in Slovenia, except Eskulap,
družba za zdravstvene storitve d.o.o.
5
BP-1_01, BP-1_02, BP-1_03.
121
The compliance information does not include Triglav INT d.o.o.; Triglav zdravje asistenca d.o.o.;
Eskulap d.o.o.; Triglav Avtoservis d.o.o.; Triglav INT d.o.o., Belgrade; Triglav Savetovanje d.o.o.,
Belgrade; Triglav Fondovi d.o.o., Sarajevo; Triglav Savetovanje d.o.o., Sarajevo; Triglav
upravljanje nekretninama d.o.o., Sarajevo; Autocentar BH d.o.o.; Sarajevostan d.o.o.; Triglav
Savjetovanje d.o.o., Zagreb; Triglav upravljanje nekretninama d.o.o., Zagreb; Triglav upravljanje
nekretninama d.o.o., Podgorica; Lovćen Auto d.o.o.; Triglav upravuvanje so nedvižen imot DOOEL
Skopje.
The disclosures required by the ESRS have been audited for 2024 but were not audited for 2023.
The 2024 tables for Zavarovalnica Triglav, d.d. include data for Triglav, Zdravstvena
zavarovalnica, which was merged into Zavarovalnica Triglav d.d. that year; however, the 2023
disclosures do not include these data for Zavarovalnica Triglav d.d.
The double materiality assessment process described in
Section 10.1.5
encompasses impacts,
risks and opportunities primarily stemming from the Group's insurance and asset management
activities, as identified by stakeholders during the double materiality assessment process. The
Sustainability Report predominantly provides information on policies, targets, risks and metrics
related to the core elements of the value chain. Where upstream and downstream data are also
considered, these are disclosed separately under the corresponding topics and/or data sections.
See Section
10.1.6 Identified impacts, risks and opportunities
for more information.
6
No information related to intellectual property, know-how or innovation outcomes has been
omitted from the Sustainability Report. Furthermore, no foreseeable events or matters under
ongoing negotiations have been excluded from disclosure.
7
Changes in the preparation or presentation of sustainability information
8
The Triglav Group began systematically disclosing non-financial impacts in 2009, following the
GRI G3 guidelines. In 2012, it identified seven material impact groups as its first material
sustainability topics, and in 2015, conducted its initial materiality analysis, which involved
stakeholder engagement. The Group has continuously enhanced its reporting by integrating
new indicators and standards, such as SASB and SDGs, and by regularly updating key
sustainability topics.
For the 2024 reporting period, the Group's sustainability disclosures have been restructured to
align with the CSRD and ESRS. These changes include:
▪
The inclusion of a Sustainability Report (ZGD-1M) in the Group's annual report, prepared in
accordance with ESRS requirements;
▪
The implementation of a double materiality assessment process in line with ESRS
requirements to identify material impacts, risks and opportunities in insurance and asset
management activities, as well as, where applicable, in upstream and downstream
segments of the value chain;
▪
The introduction of new disclosures and indicators as required by the ESRS, encompassing
descriptions of material impacts, risks and opportunities, along with the policies and
metrics established to address them.
Compared to previous annual reports, changes were made in the carbon footprint calculation.
Due to methodological challenges in the calculation of operational Scope 3, only Scopes 1 and 2
6
BP-1_04.
7
BP-1_05, 06.
8
IRO-1_15, BP-2_10.
122
are included. Minor changes, including the methodologies used for calculating individual
indicators, are detailed within the text and footnotes.
9
The table of the Triglav Group's key sustainability topics by year illustrates major shifts in their
identification since their initial identification in 2012
10
2012 (GRI G3.1)
2015 (GRI G4)
2019 (GRI GS)
2023 (GRI US)
2024 (ESRS)
Governance of the
organisation
Ensuring capital adequacy
Understanding client needs
Fair and transparent
business
Services and products
promoting social and
environmental benefits
Fair business practices
Profitability
Engaged and highly skilled
employees
Long-term stability and
profitability of operations
Data privacy and security
Employment and labour
practices
Personal data protection
A client-tailored insurance
offering – throughout the
entire life cycle
Business continuity and
preparedness for extreme
events
Climate change adaptation
and mitigation
Human rights
Prompt claims payouts
Clear terms and conditions
Commitment to employee
health and safety
Supplier relationship
management
Relationship with clients
and suppliers
Business strategy and plans
In-depth information on
the Triglav Group's
business performance and
position
Comprehensive risk
management
Accessibility of services and
financial literacy
Integration into and
development of the local
environment and the wider
community
The Triglav Group's clear
strategy
Community engagement
Care for the natural
environment
Transparent and easy-to-
understand products
Business ethics
Employee care
Equal treatment and
opportunities for all
Time horizons
11
The Company deviates from the proposed time horizons defined in ESRS 1, section 6.4. Instead,
it has adopted time horizons in its internal documents based on the business cycle, as
recommended by EIOPA
12
. The short-term is defined as 1 to 5 years, the medium-term as 6 to 10
years, and the long-term as more than 10 years.
Disclosures arising from other legislation relating to sustainability reporting
13
This report also includes sustainability disclosures in accordance with the Global Reporting
Initiative (GRI) sustainability reporting standards, including their guidance for the financial
sector, as well as the Sustainability Accounting Standards Board (SASB) and their industry-
specific guidance for insurance and asset management. The range of topics and disclosures is
presented in the GRI and SASB indices.
9
BP-2_11-14.
10
SMB-3_11; In the first definition of the Group's sustainability topics in 2012, a total of seven material sustainability
topics were identified; 28 in 2018, 25 in 2019, 17 in 2023 and 10 in 2024.
11
BP-2_01, BP-2_02.
12
Consultation paper on application guidance on using climate change scenarios in the ORSA.
13
ESRS 2 BP-2_16.
123
Incorporation by reference
14
All content required by the ESRS is presented in Section 10. Sustainability Report. However, the
information on risk management and internal controls over sustainability reporting (GOV-5) is
included in Section 2.8
Risk management
in the Accounting Report.
10.1.2 Sustainable development management system
15
Governance of Zavarovalnica Triglav
Zavarovalnica Triglav, as the parent company, has a two-tier governance system in place. Its
governance bodies are as follows:
General Meeting of Shareholders
,
Management Board
and
Supervisory Board
. In 2024, the Management Board had five members, including one Worker
Director:
▪
Andrej Slapar
, President of the Management Board. Professional profile: management,
strategic management, commercial law, insurance and reinsurance, actuarial science.
▪
Uroš Ivanc
, Member. Professional profile: Management and organisation, strategic
management, insurance, financial management, financial markets and analyses, asset
management,
actuarial
analyses
and
risk
management.
Responsible
for
the
environmental, social and corporate sustainable development (ESG) activities.
▪
Tadej Čoroli
, Member. Professional profile: Management, strategic management,
commercial law, insurance, marketing.
▪
Marica Makoter
, Member and Worker Director. Professional profile: Management,
strategic management, commercial law, insurance, human resources and organisation,
worker representation.
▪
Blaž Jakič
, Member. Professional profile: Insurance, finance, accounting, business
strategy
and
business
models,
governance
systems,
actuarial
analyses,
risk
management.
The Company's conduct of business is supervised by the Supervisory Board. As at 31 December
2024, it consisted of eight members, six shareholder representatives and two employee
representatives:
▪
Shareholders representatives:
▪
Andrej Andoljšek
(Chairman),
▪
Tim Umberger
(Vice Chairman),
▪
Barbara Nose
, Member,
▪
Tomaž Benčina
, Member,
▪
Monica Cramér Manhem
, Member,
▪
Rok Ponikvar,
Member.
▪
Employee representatives:
▪
Aleš Košiček
, Member
▪
Janja Strmljan Čevnja
, Member.
In 2024, the Company had the following committees: the Audit Committee, the Appointment
and Remuneration Committee, the Strategy Committee and the newly established Risk
Committee, as well as the Nomination Committee as an ad-hoc committee.
In assessing its composition and performance in accordance with the ZZavar-1 and the ZGD-1,
the Supervisory Board takes into account that all members possess the relevant knowledge
relating to insurance and financial markets, the business strategy and business models,
14
ESRS 2 BP-2_20.
15
ESRS 2 GOV-1_01-15, GOV-1_17, G1.GOV-1_01-02, GOV-2_02,
IRO-1_13, SASB: FN-AC-330a.
124
governance systems, financial and actuarial analyses, risk management, and the regulatory and
legal environment in which the Company operates, as well as the skills and experience in these
areas.
By signing the Statement of Independence and the Statement of Loyalty, the members of the
Supervisory Board confirmed that they comply with the conflict of interest criteria. The
proportion of independent Supervisory Board members is 100%.
Sustainable development management
The organisation and operation of the sustainable development system is regulated in a way
that ensures the overall alignment of all important sustainable development activities with the
Group's strategic ambitions and compliance with sustainability-related legislative requirements.
The Management Board is responsible for developing and implementing the Group's strategy,
which includes its strategic ambitions in sustainable development, while the Supervisory Board
approves the Group's strategy and takes note of its implementation. The sustainable
development policy is adopted by the Management Board and approved by the Supervisory
Board. A Management Board member is responsible for the environmental, social and corporate
sustainable development (ESG) activities.
All activities related to the Group's sustainable development is overseen by the Sustainable
Development Department within the Management Board Office of the Group's parent company,
of which the Management Board member responsible for the environmental, social and
corporate sustainable development activities is directly in charge.
The Compliance and Sustainable Development Committee (hereinafter: CSDC) at the Company
monitors the sustainable aspects of the Group's operations, and the Chairperson of the CSDC
reports to the Management Board on the committee's work. The CSDC is composed of managers
and other employees from various departments and divisions, following the principle of
representing key departments and divisions. It ensures compliance, ethics and sustainability,
with particular emphasis on the areas of focus for each meeting. The chair of the CSDC is a
member of the Company's Management Board.
Depending on the needs and nature of the work, the Sustainable Development Department
provides technical support to business functions and the Management Board, while also
coordinating the formation of working groups to effectively implement strategic ambitions and
meet sustainability-related legislative requirements.
Strategic impacts, risks and opportunities are addressed during each strategy update, starting
from an analysis of key industry trends, stakeholder expectations, and identified social and
environmental challenges (e.g. demographic change, climate change). The Group's strategic
ambitions for 2025–2030 are shaped by the expectations of its owners for a profitable, safe and
stable investment. These ambitions also reflect the evolving needs of its clients, with the Group
aiming to continue delivering a safe and seamless user experience, while ensuring high
employee satisfaction and engagement. This will be achieved through an agile and efficient
organisational structure, with strengthened cooperation with partners. By pursuing the
sustainability objectives outlined in its strategy, the Group seeks to maintain a long-term,
sustainable foundation for profitable and safe operations, including supporting the transition to
a sustainable society and mitigating its impact on climate change. Strategic risks are regularly
monitored as part of the risk management process. Despite the long-term nature of the strategy
period, the Group remains flexible and may adjust its strategy in response to significant changes
in the business environment or the emergence of major strategic risks. The Group's ongoing
product development and agile organisational culture enable it to swiftly adapt its product
125
portfolio in response to market changes, even within a short timeframe. Additionally, by
maintaining high liquidity within its investment portfolio, which constitutes the largest part of
its assets, the Group can adjust its asset structure and facilitate reallocation as needed. Through
an ongoing capital management process, the Group ensures an optimal volume and quality of
its funding sources, along with the optimal cost of capital.
16
The Company's business functions report sustainability-related activities to the Management
Board, while the Sustainable Development Department provides updates twice a month to the
Management Board member responsible for ESG. The Audit Committee of the Supervisory Board
and the Supervisory Board monitor these processes and oversee sustainability reporting, which
they discuss and approve as part of the adoption of each Triglav Group's annual report.
17
In 2024, the Management Board members received an average of 18.6 teaching hours of training
on sustainability-related topics. Additionally, an online training course on best sustainability
practices in the insurance industry was organised for the Supervisory Board members in March
2024.
18
Management of sustainability aspects in the Triglav Group
16
ESRS 2 SBM-2_07–12, SBM-3_10, E1.SBM-3_07.
17
ESRS 2 GOV-2_01.
18
ESRS 2 GOV-1_16.
Management Board of
Zavarovalnica Triglav
Management Board member
responsible for ESG
Sustainable Development Department
(Management Board Office)
Directing all activities related to sustainable development
Compliance and Sustainable Development Committee at the
Company
(managers and other employees from various departments and divisions as well as
a Management Board member)
Monitoring and directing activities and discussing legislative requirements in the
field of ESG
Adoption of internal acts related to the compliance risk management system and
ESG
Sustainable development working groups
(ad hoc groups, depending on the needs and nature of the work)
Sustainability
coordinators
(in the context of
the competent
departments of the
Company and at the
level of Group
companies)
▪
Integration and
implementation
of strategic
guidelines
▪
Compliance with
legislative
requirements
Supervisory Board of Zavarovalnica Triglav
126
Integration of sustainability-related performance in incentive schemes
19
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, Commission Delegated
Regulation (EU) 2015/35 supplementing Directive 2009/138/EC, Regulation (EU) 2019/2088 on
sustainability
‐
related disclosures in the financial services sector and the ZGD-1. 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. The Policy is designed to take into
account the Company's internal organisation and the nature, scope and complexity of risks by
including sustainability risks. The variable remuneration of employees is determined by taking
into account the implementation of strategic guidelines, which also include the commitments
to sustainability, long-term interests and performance of the Company and the Triglav Group as
a whole. In 2024, the Remuneration Policy was amended in accordance with SDH's
recommendations and current legislation. The Remuneration Policy was approved at the 49th
General Meeting of Shareholders of Zavarovalnica Triglav d.d. on 4 June 2024.
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). In accordance with the revised Remuneration Policy, the basic salary of
the President and members of the Management Board shall not exceed EUR 22,000.00. Every
two years, the ceiling shall be increased according to the increase in the average consumer price
index for each of the last two years.
The contract of employment and appointment to office concluded with the President and the
members of the Management Board will set the basic salary within the limits defined in this
Policy, i.e. the amount of the basic salary of the President of the Management Board shall be set
at the ceiling and the amount of the basic salary of each Management Board member shall be
up to a maximum of 95% of the President of the Management Board's salary, depending on the
duties and responsibilities of the specific Management Board member (e.g. taking into account
the sectoral division of their areas of responsibility, their individual qualities (knowledge,
experience, references, skills) and the remuneration of members of the management bodies of
comparable companies in the insurance sector in Slovenia and in the region).
Notwithstanding the above, during the period of validity of the 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 performance-based variable remuneration may be set at a maximum of 60% of the basic
salaries paid in the financial year. If the Company meets at all of the following criteria: it is a
public limited company, more than 50% of its net revenue is generated in foreign markets, it has
more than 5,000 employees in the group and it has at least EUR 500 million of share capital, a
performance-based variable remuneration may be set up to a maximum of 100% of the basic
salaries paid in the financial year. Notwithstanding the above, during the period in which the
19
ESRS 2 GOV-3_01-06, E1.GOV-3_01-03.
127
ZPPOGD applies, the amount of the variable remuneration may be set at a maximum of 30% of
the basic salaries paid in the financial year. The variable remuneration 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 taking into account 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, compliance with ethical and professional
standards, the achievement of sustainable development goals (environmental, social,
governance), and 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 financial year and a one-on-one annual
interview with each Management Board member, where the personal annual targets are
identified.
The variable remuneration proportion for Management Board members tied to the
Management Board's overall annual and medium-term sustainability objectives was up to 2.5%
of their basic salaries paid in 2024. Additionally, for Management Board members with
sustainability objectives included as part of their personal annual objectives, the proportion was
up to 7.5% of their basic salaries.
Environmental objectives, particularly carbon footprint reduction, are included among the
criteria assessed in the context of the sustainability objectives tied to the Management Board's
remuneration.
Data on the remuneration of the Management Board members are disclosed in Section
4.4 of
the Accounting Report.
Due diligence statement
20
The due diligence system ensures compliance with legislation, external commitments and
internal documents. Due diligence is conducted through targeted compliance reviews, internal
audits, monitoring operational loss event reports, providing recommendations, tracking
corrective actions and their effectiveness, regular risk assessments, evaluating the adequacy of
internal controls. Regular compliance audits address sustainability areas such as scenario
assessments for sustainability risks, non-compliance with human rights, ethical commitments,
corruption and bribery prevention, management of conflicts of interest, internal fraud risks and
violations related to labour and health and safety at work.
20
ESRS 2 GOV- 4_01.
128
The table below outlines how the Group implements the core elements of due diligence for
people and the environment, and where details are provided in the Sustainability Report.
Core elements of due diligence
Sections in the Sustainability Report
Disclosures relate to impacts on people
and/or the environment
(a) Embedding due diligence in
governance, strategy and
business model
▪
ESRS 2 GOV-2 – section 10.1.2
▪
People and the environment
▪
ESRS 2 GOV-3 – section 10.1.2
▪
People and the environment
▪
ESRS 2 SBM-3 – sections 10.1.3, 10.1.6
▪
People and the environment
(b) Engaging with affected
stakeholders in all key steps
of the due diligence
▪
ESRS 2 SBM-2 – section 10.1.4
▪
People and the environment
▪
S1 – section 10.3.1
▪
People
▪
S3 – section 10.3.3
▪
People
▪
S4 – section 10.3.2
▪
People
(c) Identifying and assessing
adverse impacts
▪
ESRS 2 IRO-1, section 10.1.5
▪
People and the environment
▪
ESRS 2 SBM-3, section 10.1.6
▪
People and the environment
(d) Taking actions to address
those adverse impacts
▪
ESRS 2 MDR-A, section 10.1.2
▪
People and the environment
▪
E1 – section 10.2.1
▪
The environment
▪
S1 – section 10.3.1
▪
People
▪
S3 – section 10.3.3
▪
People and the environment
▪
S4 – section 10.3.2
▪
People
▪
G1 – section 10.4.1
▪
People
(e) Tracking the effectiveness of
these efforts and
communicating
▪
S1 – section 10.3.1.2, 10.3.1.3
▪
People
▪
S3 – section 10.3.3
▪
People
▪
S4 – section 10.3.2.1
▪
People
▪
G1 – section 10.4.1
▪
People
Risk management and internal controls over sustainability reporting
Risk management, including sustainability risks, is outlined in
Section 2.8 Risk management
in
the Accounting Report. Sustainability risk management systems and processes are embedded in
this internal process and are continuously upgraded
.
21
10.1.2.1 Strategic ambitions in sustainable development
22
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 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. The Group views sustainable
development as an opportunity across its asset management, insurance product development,
claims handling and energy efficiency segments. It is committed to increasing the proportion of
21
IRO-1_12.
22
FN-IN-410a.2, FN-AC-410a.2.
129
investments with sustainability characteristics, such as green and social impact bonds. Triglav
Skladi funds support environmental and social characteristics, in alignment with Article 8 of the
SFDR. In the insurance sector, products such as solar power plant insurance, micromobility
insurance, parametric insurance for climate risks and benefits for young farmers are being
developed. Looking ahead, the focus will be on expanding insurance offerings for sustainable
mobility and providing effective risk protection to companies using renewable energy sources.
Its sustainable (ESG) ambitions for 2025 are divided into four key areas, which are presented
below.
23
Insurance and asset management
In both strategic activities, insurance and asset management, the Group's activities are focused
on the transition to a climate-neutral and climate-resilient circular economy. In carrying out its
insurance and investment activity, the Group promotes sustainable economic activity, energy
efficiency and energy from renewable sources with an aim to reduce greenhouse gas The ESG
aspects are integrated into the development of insurance and investment products and services.
In asset management, the Group will not only double the share of its green and sustainable
investments compared to the 2020 base year, but also reduce its exposure to issuers on the Coal
Exit List (companies at which at least 20 per cent of electricity production or income stems from
coal) to less than one per cent of total investment value by 2025.
In its insurance activity, the Group will develop new and increase the presence of existing index-
based insurance products for drought, flood and other climate risks. The Group promotes its
range of insurance products related to sustainable mobility and provides effective risk protection
for companies involved in the production of energy from renewable sources.
Triglav Group's business processes
The Company has set up an assessment of suppliers by sustainability criteria and the Group's
comprehensive carbon footprint measurement and management (Scope 1 and 2).
Key
quantitative performance indicators by 2025:
▪
Reduce the location-based carbon footprint (Scope 1 and 2) per employee by 15% compared
to the 2019 base year;
▪
Increase the share of electricity from renewable energy source to 75%;
▪
Increase the share of electric and hybrid vehicles in the fleet to at least 30%.
Responsible stakeholder engagement
The Group acts with responsibility towards its employees, clients, partners and community at
large. It aims to maintain high levels of client (NPS)
24
and employee satisfaction. The concept of
flexible working was implemented with the aim of improving employees' work-life balance,
while expanding programmes promoting health and well-being. The focus will continue to be
on multidimensional diversity, intergenerational cooperation, and employee development and
training. The Group will continue to participate in corporate social responsibility projects and
enter into partnerships and give donations. In parallel, the Group will promote environmental
and social responsibility projects that contribute to the achievement of the United Nations
Sustainable Development Goals (SDGs).
23
ESRS 2 SBM-1_21, SBM-1_23.
24
S4.MDR-T_01, 04.
130
Effective corporate governance
The Group attains high standards of corporate governance and adheres to its code of ethics in
the performance of its business operations. By incorporating environmental, social and
governance factors, the Group plans to upgrade succession, diversity and remuneration policies
for the members of the management and strive to improve the diversity of the Group's
management and supervisory bodies in terms of gender, education and experience. The Group
will increase the scope of public disclosures on its sustainable operations by 2025.
At the end of 2022, a Sustainable Development Action Plan was developed for individual areas,
serving as the basis for implementing strategic actions and meeting legislative requirements.
Implementation of strategic guidelines and sustainable development goals of the Triglav Group
in 2024
▪
Insurance and asset management
→
The share of green, sustainable and social impact bonds in own investment portfolio:
an
increase from 11.1% to 12.9%
.
→
Triglav Skladi mutual funds: as at 1 December 2024, all funds were restructured into
funds
promoting environmental and social characteristics
, in accordance with Article 8 of
the SFDR.
→
Income from insurance products that promote general social and environmental
benefits:
an expanded product range and an increase in written premium in the insurance
business.
▪
The Group's business processes
→
Reduction of the Group's carbon footprint for Scope 1 and 2 (location-based):
a decrease
of 12%
.
→
Increase the share of electricity from renewable energy sources from
62% to 66%.
→
Sustainable mobility: a higher share of electric and hybrid vehicles in the fleet from
11%
to 17%
.
▪
Responsible stakeholder engagement
→
Delivering on the SDGs: continuing
the Insure Our Future project
with partners.
→
Maintaining a high ORVI index
.
→
Active relations with shareholders and investors and compliance with Ljubljana Stock
Exchange Prime Market terms and conditions.
▪
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 of
the Company on sustainability factors.
→
Global alliances: a signatory to the United Nations Principles for Responsible Investing
(PRI) and the United Nations Principles for Sustainable Insurance (PSI).
131
Strategic ESG Indicators
25
Triglav Group
Strategic indicator
Unit
2019
achievement
2020
achievement
2021
achievement
2022
achievement
2023
achievement
2024
achievement
2025
strategic
plan
Carbon footprint (Scope 1 and 2 –
location-based) per employee
tCO
2
eq/employee
2.18
1.99
1.90
1.64
1.51
1.34
1.85
Share of electricity consumption from
renewable energy sources
%
1%
4%
33%
63%
62%
66%
75%
Energy consumption per employee
TOE/employe
e
0.47
0.41
0.30
0.31
0.29
0.27
0.40
Average daily consumption of office
paper per employee (A4)
A4 sheet
53
45
20
19
17
17
27
Amount of waste generated per
employee
kg/employee
109
125
124
116
117
129
93
Share of electric and hybrid vehicles in
the fleet
%
4%
4%
4%
8%
11%
17%
30%
Share of investment exposure to
issuers on the Coal Exit List
%
na
na
na
na
0%
0%
<1%
Share of ESG bonds
%
na
4%
8%
10%
11%
13%
8%
Share of in-house training via e-
platforms
%
na
81%
91%
67%
52%
55%
>30%
Share of women in the Group's
management and supervisory boards
%
20%
13%
18%
24%
27%
26%
>20%
Average number of training hours per
employee
Number
5
24
31
33
32
31
28
Digital training for employees
%
21%
37%
81%
62%
52%
50%
0.35%
Employee satisfaction
Index ORVI
3.88
3.99
4.00
4.00
3.94
3.97
3.80
10.1.2.2 Sustainable development policy
26
The Sustainable Development Policy of Zavarovalnica Triglav d.d. and the Triglav Group
(hereinafter: the Policy) establishes the framework for the Group's sustainable development.
The Policy was adopted by the Company's Management Board and Supervisory Board. The goal
is to conduct the Group's core activities, i.e. insurance and asset management, in a manner that
delivers long-term economic, social and environmental value to shareholders, investors, clients,
employees, suppliers, partners, the wider society and the environment.
The Policy defines how the Group's strategic ambitions in sustainable development (ESG) will be
achieved. It addresses the following: the identification of risks and the perception of
opportunities to achieve business objectives; the sustainability management system at the
parent company and Group levels; guidelines on managing sensitive economic activities in terms
of sustainability risks; key corporate governance policies; and other key aspects of sustainable
development, such as responsibility to employees and corporate social responsibility projects. In
November 2024, the Group enhanced its strategic ambitions in sustainable development with
long-term goals extending to 2030. These goals focus on reducing the Group's carbon footprint,
increasing environmentally sustainable investments and bonds with sustainable characteristics,
and developing insurance products for renewable energy sources and sustainable mobility. At
the same time, the Group is reinforcing corporate social responsibility, diversity and ethical
business practices to ensure long-term resilience and sustainable growth.
25
ESRS 2 SBM-1_22, E1.MDR-T_01-08, S1.MDR-T_01–08.
26
ESRS 2 S1.MDR-P_01-04,06, S3.MDR-P_01-04, 06, S4.MDR-P_01-04, 06, E1.MDR-P_01-04, 06, G1.MDR-P_01-04, 06.
132
The table below provides an overview of key policies related to the management of identified material impacts, risks and opportunities. Further
details on these policies are provided in the individual sections. Material impacts, risks and opportunities are described in Section
10.1.6
.
Policy
Key policy messages
Areas of application
Responsible
body
Related standards/initiatives
Availability
Sustainable Development Policy
▪
A framework for implementing the Group's sustainability
strategy
▪
Commitment to long-term economic, social and
environmental value creation
▪
The sustainable development management system at the
Triglav Group
▪
Guidelines on sensitive economic activities
▪
Sustainability risk management
▪
Employee well-being, diversity and inclusion
▪
Sustainability reporting and stakeholder engagement
The Triglav Group (except for
the clients' assets managed in
mutual funds and discretionary
mandate assets, which are
managed by the Group's asset
management companies)
Management
Board of
Zavarovalnica
Triglav
United Nations Principles for Sustainable
Insurance (UN PSI), Partnership for Carbon
Accounting Financials (PCAF)
Corporate website
Sustainable Investment Policy
The Triglav Group (except for
the clients' assets managed in
mutual funds and discretionary
mandate assets, which are
managed by the Group's asset
management companies)
Management
Board of
Zavarovalnica
Triglav
SFDR, United Nations Principles for Responsible
Investment (UN PRI)
Corporate website
Succession Policy for Management
Members of Triglav Group Companies
▪
Acquisition and retention of high-quality staff
▪
Succession planning
▪
Ensuring a positive working environment
▪
Commitment to employee engagement, satisfaction and
health
▪
Promotion of knowledge transfer at Group level
▪
Creation of a uniform organisational culture
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Policy on the Management of Key
High-Potential and Young High-
Potential Employees
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Employee Development and Care
Policy
Zavarovalnica Triglav
Business
function
Internal – the internal
documents module on
the intranet
Rules on the Protection of Workers'
Dignity
Zavarovalnica Triglav
Business
function
Internal – the internal
documents module on
the intranet
Rules on Specialised In-House Training
in the Triglav Group
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Triglav Group Code
▪
The Triglav Group's ethical principles guide actions to uphold
its reputation, build trust in the brand, and ensure successful,
profitable and sustainable operations in line with its
objectives, mission, vision and strategy.
▪
They establish uniform corporate business and ethical
standards, complementing the standards of conduct followed
by all employees.
▪
Everyone acting on behalf and for the account of the Group
companies is committed to adhering to these principles. They
serve as a guide for addressing workplace challenges, making
responsible decisions and navigating ethical dilemmas.
▪
They provide direction for drafting internal regulations within
Group companies, ensuring compliance with the provisions of
the Code.
Triglav Group
Management
Board of
Zavarovalnica
Triglav
UN Universal Declaration of Human Rights, ILO
Declaration on Fundamental Principles and
Rights at Work, Commitment to Respect Human
Rights in Business, National Action Plan of the
Republic of Slovenia on Business and Human
Rights, Slovenian Corporate Governance Code,
Slovenian Corporate Integrity Guidelines,
Insurance Code
Rules on the Handling of Internal
Fraud and Violations of the Triglav
Group Code
Zavarovalnica Triglav
Business
function
Commitment to Respect Human Rights in
Business, Directive (EU) 2019/1937
Internal – the internal
documents module on
the intranet
Corruption Risk Management Policy
Triglav Group
Management
Board of
Zavarovalnica
Triglav
United Nations Global Compact Slovenia
Declaration on Fair Business
Slovenian Corporate Integrity Guidelines
Internal – the internal
documents module on
the intranet
133
Compliance Policy
▪
Consideration, identification, reporting and investigation of
unfair practices
▪
Measures to protect whistleblowers from retaliation and to
provide immediate assistance
▪
Protection of the whistleblower's identity
▪
It defines the key elements of the corruption risk
management system designed to effectively prevent and
detect corrupt practices and establishes the procedure for
reporting and handling cases that may pose a corruption risk
and requires employees to take an active role.
▪
It sets out written rules, procedures and standards for
organising the Compliance Office.
▪
Reporting and supervision lines
▪
Organisation of the compliance function, Compliance and
Sustainable Development Committee
▪
Education, information and training
▪
Consistency in taking action for non-compliant behaviour
▪
Determining the effectiveness of the compliance system
▪
Management of compliance risks
ZZavar-1, Commission Delegated Regulation
(EU) 2015/35 supplementing Directive
2009/138/EC (Solvency II), EIOPA Guidelines on
System of Governance
Diversity policy
▪
Prohibition of discrimination based on race and ethnic origin,
colour, gender, sexual orientation, gender identity, disability,
age, religion, political opinion, or national or social origin
▪
Recognising, preventing and eliminating the consequences of
discrimination, sexual and other harassment and workplace
mobbing
▪
Ensuring diversity
▪
Gender representation
Triglav Group
Management
Board
Internal – the internal
documents module on
the intranet
Rules on the Implementation of
Prevention Activities and the
Allocation of Funds for Prevention
▪
General principles and guidelines for the development of
prevention activities
▪
Purpose and conditions for the use of funds allocated to
preventive measures
▪
Conditions, methods and procedures for managing
sponsorship and donor partnerships
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Guidelines on Sponsorship and
Donation Management
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Regulations on Sponsorship and Donor
Partnerships
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Rules on Sponsorship and Donor
Partnerships
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Triglav Group Communication Code
▪
Fundamental principles for effective and balanced
communication
▪
Positioning of the communication function, responsibilities
for communication
▪
Communicating in a crisis
Triglav Group
Business
function
Internal – the internal
documents module on
the intranet
Policy on Insurance Product
Governance, Oversight and
Distribution at Zavarovalnica Triglav
▪
Consumer protection
▪
Identification and tracking of the needs of the target market
Zavarovalnica Triglav
Management
Board, person
responsible
for
distribution
Directive (EU) 2016/97, Commission Delegated
Regulation (EU) 2017/2358 supplementing
Directive (EU) 2016/97, Commission Delegated
Regulation (EU) 2017/2359 supplementing
Directive (EU) 2016/97, Commission Delegated
134
Regulation (EU) 2021/1257 amending Delegated
Regulations (EU) 2017/2358 and (EU)
2017/2359, EIOPA Guidelines, supervisory
bodies' views and good business practices of
Zavarovalnica Triglav d.d.
Overarching Information Security
Policy of Zavarovalnica Triglav
▪
Establishment, operation, monitoring, maintenance and
improvement of the information security management
system
▪
Personal data protection
▪
Rules for the lawful processing of data in specific business
segments
Zavarovalnica Triglav
Business
function
EIOPA, DORA, ISO 27001
Internal – the internal
documents module on
the intranet
Privacy Policy
Zavarovalnica Triglav
Business
function
GDPR
Corporate website
Cookie Policy
Zavarovalnica Triglav
Business
function
GDPR
Corporate website
Personal Data Protection Rules
Business
function
GDPR
Internal – the internal
documents module on
the intranet
Remuneration Policy
Remuneration policy for the members
of the supervisory and management
bodies of Group subsidiaries
▪
Business integrity and transparency
▪
Maintenance of the appropriate capital strength of the
Company
Zavarovalnica Triglav, Triglav
Group subsidiaries
Business
function
ZGD-1, Solvency II Directive, Commission
Delegated Regulation (EU) 2015/35
supplementing Directive 2009/138/EC, EU
Regulation 2019/2088 and local legislation
Internal – the internal
documents module on
the intranet
Zavarovalnica Triglav's Procurement
Policy
▪
Definition of the core development guidelines in
procurement, fostering long-term partnerships and
emphasising sustainability
▪
Definition of the selection process with built-in internal
controls
▪
Supplier suitability assessment, with a focus on compliance
and sustainability
▪
Definition of roles in the procurement process and agreement
management
Zavarovalnica Triglav's partners
and suppliers
Business
function
Code, Outsourcing Policy,
information security
Corporate website
Agreement Management Policy
Business
function
Internal – the internal
documents module on
the intranet
Rules on Procurement at
Zavarovalnica Triglav
Business
function
Internal – the internal
documents module on
the intranet
General terms and conditions for
Zavarovalnica Triglav's suppliers
Governance System and Policy of
Zavarovalnica Triglav d.d.
▪
Definition of the key elements of the Company's governance
system and the main governance rules for the Company and
the Group, aligned with the Group's strategy.
▪
Definition of transparent internal relationships of
responsibility and powers within the governance system.
▪
Establishment of a sustainable orientation in environmental,
social and governance (ESG) areas, 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.
▪
Outlining the organisation and operation of a sustainable
development system that ensures the overall alignment of all
important sustainable development activities with the
Group's strategic ambitions and compliance with
sustainability-related legislative requirements.
Zavarovalnica Triglav
Management
Board of
Zavarovalnica
Triglav
ZZavar-1
Corporate website
10.1.3 Triglav Group's business model and value chain
27
Sources of value creation
Assets for the Group's operations stem from a solid capital base, written premiums and funds from
shareholders and investors. Employees, bringing together a diverse range of skills and talents, form
the foundation for the Group's success and the implementation of its development strategy. In
collaboration with partners and suppliers, the Group ensures business continuity and the
widespread availability of its products and services, while prevention projects are also carried out.
Efforts are ongoing to improve the efficient use of natural resources.
For
more information, see sections 8. Operations of the Triglav Group and Zavarovalnica Triglav and 10.3.3.
Community engagement.
Value created for stakeholders
Clients
are provided with financial security, health and asset protection through insurance, claims payments, asset
management, and additional assistance and prevention services. Through stable and development-oriented operations,
the value of the Group's assets and its
shareholders
and
investors
is increased.
Employees
are provided with a safe,
healthy and stimulating working environment. Locally-oriented and responsible procurement is supported through
investment, tax payments, accessible services and contributions to
economic
development, the social environment and
green transition efforts. The Group is involved in the development of
local communities
and
the insurance sector
. The
goal is to be a reliable partner that promotes proactive risk management, financial literacy in society and responsible
supplier
conduct.
For more information see sections 6. The share and shareholders of Zavarovalnica Triglav, 10.1.4 Key stakeholders, 10.2.1 Climate change
mitigation, 10.3.1 Employee care, 10.3.2 Clients, 10.3.3 Community engagement and 10.4.2 Supplier relationship management.
Underwriting, management and diversification of risks
←→
Optimisation of the value created
Key upstream suppliers
in the value chain
▪
IT partners
▪
Capital providers
▪
Suppliers of energy
and office supplies
→
Product
development
and
management
Acquisition of
new business
Risk
management
Management
of own assets
Management
of client assets
Claims
management
Optimisation of
asset value
Sales
Distribution,
advice and
client support
→
Key downstream
clients in the value
chain
▪
Clients in the
insurance business
▪
Clients in the asset
management
business
Corporate Governance, Strategic Planning, Controlling, Human Resources, Legal, Risk Management, Compliance, IT, Finance
-----------------------------------------------------------------------
Dynamic challenges in the environment
-------------------------------------------------
▪
Competition
▪
New client needs
▪
Technological development
▪
Financial and macroeconomic factors
▪
Development of regulatory
frameworks
▪
Environmental change
▪
Demographic and social change
▪
Economic and political factors
For more information see sections 7. Macroeconomic environment and market trends and 9. Risk management.
27
ESRS 2 SBM-2_01-06, SBM-1_01-02, 04, 06, SBM-1_25-28.
Distribution, advice and client support
Clients are offered a comprehensive range of products and services through various distribution
channels. Access to these services is facilitated through the Group's extensive sales network and
contractual sales partners in the Adria region and international markets, operating under the FOS
and FOE principles. These include specialised partners, insurance brokerage companies and
providers of non-insurance products and services, such as roadworthiness test providers,
equipment manufacturers and banks.
Triglav Group clients
The Triglav Group is the leading insurance and financial group in the Adria region, employing 5,204 people and generating
total revenue of EUR 1,393.2 million or EUR 1,622.3 million in written premium. Products and services are offered to individuals
and corporate clients, including small and medium-sized enterprises and large business entities. In cooperation with
subsidiaries and through a network of business partners, the Group's operations are carried out in six markets in the Adria
region and internationally, with Slovenia as its core market. In the insurance sector, the Group offers a wide range of non-life,
life, health and reinsurance products. In asset management, services include own-portfolio management, client savings
solutions, management of client assets in mutual funds and discretionary mandate services.
10.1.4 Key stakeholders
28
The review, assessment of the relevance and updating of the Group's key stakeholders were
based on the AA1000 Stakeholder Engagement Standard, an analysis of sector practices
(focusing on large insurance and financial groups in the region), and the Group's specific
characteristics. The update was made based on the existing identification of stakeholders in
Zavarovalnica Triglav's Governance System and Policy.
The Triglav Group stakeholders:
▪
Clients
▪
Employees
▪
Shareholders and investors
▪
State and supervisory authorities
▪
Partners and suppliers
▪
Local communities, interest groups and nature
▪
Media
The Group's stakeholders are 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. Employee satisfaction is measured by the
ORVI index. 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 in the
annual report.
29
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.
30
24
ESRS 2 SBM-2_01–04.
29
ESRS 2 SBM-2_05, SBM-2_06 .
30
ESRS 2 SBM-2_07, S4.SBM-3_01, S4.SBM-3_2_03.
Highlighted topics and engagement results of key stakeholders
Stakeholders
Key interests
Engagement method
Engagement results
Clients
▪
Insured
▪
Investors, savers in
funds
▪
Users of assistance
services
▪
Users of other services
▪
Understanding client needs
▪
Rapid claim settlement
▪
Innovative financial and insurance products and
services
▪
Clear terms and conditions
▪
Personal data privacy and security
▪
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
▪
Email
▪
Telephone conversations
▪
Opinion polls and surveys
▪
Websites, blogs and e-newsletters
▪
Social networks
▪
Mobile apps
▪
Marketing communication
▪
413,644 telephone conversations in Zavarovalnica Triglav's
call centres
▪
50,938 replied electronic messages in Zavarovalnica Triglav
▪
More than 24,000 subscribers to the newsletters
Vozim se
(I'm driving) and
Vse bo v redu
(Everything Will Be Alright)
▪
274,369 users of the i.triglav digital office
▪
More than 47,000 regular users of the
Vozim se
and the
Vse
bo v redu
portals
▪
NPS of the Group is 70 and 66 of Zavarovalnica Triglav
▪
430,262 processed claim files at Zavarovalnica Triglav
▪
3,784 complaints and 44 compliments in Zavarovalnica
Triglav
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
▪
Equal treatment and opportunities for all
▪
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
▪
Email
▪
3.97 – the ORVI index at a high level
▪
1,420 of employees are members of the Triglav Group
mountaineering and sports clubs
▪
Supplemental pension insurance for 59% employees of the
Group and 97% of the Company
▪
The group insurance package Comprehensive Medical Care
(Celostna zdravstvena oskrba – CZO), in which 70% of all
employees of the Group and 84% of the parent company
are included
▪
31 training hours per employee at Group level
▪
A family-friendly enterprise
Shareholders and investors
▪
Shareholders and
potential investors
▪
Financial analysts
▪
Brokerage firms
▪
Institutional investors
▪
Investment firms
▪
Business strategy and its implementation
▪
Operations
▪
The Group's 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
▪
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 and LinkedIn
▪
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
▪
3 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
▪
Government
▪
Ministries and
government agencies
▪
Securities Market
Agency
▪
Insurance Supervision
Agency
▪
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
▪
70 complaints with respect to personal data protection at
the Triglav Group, 43 of which were grounded
▪
1,119 fraud cases confirmed out of 1,756 reported cases of
suspected insurance fraud insurance
138
Stakeholders
Key interests
Engagement method
Engagement results
Partners and suppliers
▪
Insurance agents
(external sales network)
▪
Suppliers
▪
Ecosystem partners and
assistance service
providers
▪
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
▪
1,047 assessments of suppliers according to regulatory and
expanded sustainability criteria to check suppliers'
compliance with employee rights, human rights and
environmental legislation
Local communities, interest
groups and nature
▪
Local communities
▪
Municipalities, local
self-government
▪
Industry associations
▪
Expert community
▪
Interest associations
▪
Non-governmental
organisations
▪
Other initiatives,
societies and
associations in which
the Triglav Group
participates
▪
Traffic and fire safety
▪
Health protection and care
▪
Co-development of projects in the areas of culture,
sport, prevention, health, art and 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
▪
Email
▪
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 155 young talents in twelve years of the Young
Hopes project
▪
2,200 motorcyclists attended safe driving workshops over
ten years
▪
More than 130,000 road users refresh, renew and improve
their knowledge of safe road behaviour on the Vozim se
portal
▪
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 2.9 million for prevention activities, EUR 5.8 million for
sponsorships and EUR 0.8 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
▪
Email
▪
Telephone conversations
▪
Websites
▪
63 press releases by Zavarovalnica Triglav
▪
255 answers to the questions of the press by Zavarovalnica
Triglav
▪
8,357 publications related to key topics about the Triglav
Group in the media
10.1.5 Double materiality assessment
10.1.5.1 The double materiality assessment process
31
In 2023, the Group initiated the double materiality assessment process in line with the CSRD and
ESRS requirements. The process was led by the Company's Management Board member responsible
for ESG and directly involved approximately 40 employees and representatives from key stakeholder
groups.
The Group carries out the double materiality assessment from the top down starting with the
evaluation of impacts, risks and opportunities (IROs) and working closely with subsidiaries to gather
all necessary information (in line with EFRAG's recommendations for parent companies (EFRAG,
paragraph 191) and
in line with ESRS 1, paragraph 103).
The double materiality assessment process involves the following participants:
▪
The Group's managers and other employees responsible for key business functions;
▪
Internal experts who engage with the Group's key stakeholder groups and understand their
interests and expectations;
▪
Representatives of the Group's subsidiaries;
▪
Representatives of key stakeholder groups.
The set of relevant sustainability topics and the IRO definition are based on:
▪
The content requirements of ESRB topics, sub-topics and sub-sub-topics (as defined in ESRS 1 AR
16);
▪
The established international sustainability reporting standards GRI;
▪
The sustainability accounting standards (SASB standards) for the financial sector;
▪
Good reporting practices in the insurance and financial services industry in Europe;
▪
Identified risks and opportunities as part of the Group's ongoing risk management process;
▪
Identified impacts of the Group on (key) stakeholders and nature;
▪
Relevant external expert and internal sources;
▪
The Group's existing material sustainability topics, strategy and policies.
The materiality assessment results and process are approved by the Risk Management
Committee, the Compliance and Sustainable Development Committee and the parent
company's Management Board. The Audit Committee of the Supervisory Board reviews and
evaluates the results and process, granting approval during the annual report's approval.
10.1.5.2
Methodology
32
Impact materiality
The sustainability topics are assessed in relation to at least two to four dimensions (scale, scope,
likelihood, irremediable character), depending on the type of impact (as provided for in
paragraphs 45 and 46 of the ESRS). Impact dimensions are evaluated using a six-point threshold
scale, with scores ranging from 0 to 5.
The Triglav Group's impact materiality assessment was conducted in three steps. In the first step,
internal experts assessed the sustainability topics. In the second step, their assessments were
reviewed and supplemented by representatives of key stakeholder groups. The third and final step
31
ESRS 2 IRO-1_02–06, 2 IRO-1_11, IRO-1_14, SBM-2_12.
32
ESRS 2 IRO-1_01, IRO-1_07–10, GOV-2_03.
140
combined the assessments of both internal experts and stakeholder group representatives to
complete the impact materiality assessment.
Financial materiality
The methodology for calculating the financial materiality of sustainability topics aligns with the
ESRS 1 guidelines and incorporates the Group's existing risk and opportunity assessment
methodology, in accordance with the recommendations of the European Insurance and
Occupational Pensions Authority (EIOPA). The thresholds for determining the materiality of
sustainability topics and the scale on which the topics are assessed are set in cooperation with
the Risk Management Department and approved by the Risk Management Committee (RMC).
The topics and identified risks and opportunities are evaluated using a three-step scale that
considers
the likelihood of occurrence, the potential financial impact
and
the duration of the
financial impact
, in accordance with the Group's established risk assessment methodology.
Because sustainability risks and opportunities are so diverse (and so are the associated options
for quantifying financial impacts), financial impact thresholds can be defined quantitatively or
qualitatively. Risks and opportunities are assessed separately.
At the time of the IRO's initial content definition, the analytical phase of the double materiality
assessment process identified 20 sustainability topics in terms of
financial materiality
. At the
time of the IRO's initial content definition, the analytical phase of the double materiality
assessment process identified 20 sustainability topics in terms of financial materiality. These
topics were subsequently reviewed during a strategy workshop and through additional
questionnaires completed by 32 leaders and other relevant employees of the Company and
several subsidiaries responsible for key business functions within the Group, aligned with the
identified sustainability aspects. Based on this review, the IRO definitions were revised and
updated, narrowing the initial set of sustainability topics from 20 to 19. In the next phase,
leaders and other relevant employees further evaluated the financial materiality of the topics
for the Group
10.1.6
Identified impacts, risks and opportunities
As part of the double materiality assessment process,
10 material topics were identified, along
with 25 sub-topics ESRS
, for which disclosures are prepared in the 2024 annual report. The
analysis included a review of GRI and SASB standards relevant to the Group's sectors, i.e.,
financial services and asset management, providing a sectoral perspective and enabling the
inclusion of topics specific to the Triglav Group. Of the 10 material sustainability topics
presented in the matrix below, three are sector-specific and Triglav Group-specific: Services and
products promoting social and environmental benefits, Accessibility of services and financial
literacy, and Community engagement.
141
The Triglav Group sustainability topics, presented based on a double materiality assessment
Legend
The materiality threshold for sustainability topics for the Triglav Group
The Group's most material sustainability topics, identified through both aspects of the double
materiality assessment – impact on people and the environment, as well as financial impact –
are depicted in the top right quadrant of the graphic. Key areas with the highest materiality for
the Group include Services and products promoting social and environmental benefits as well as
Climate change adaptation and mitigation. They are followed by Data privacy and security,
Supplier relationship management, Accessibility of services and financial literacy and
Community engagement. Additionally, Transparent and easy-to-understand products, Business
ethics, Employee care and Equal treatment and opportunities for all are also considered material,
particularly in terms of their impact on people and the environment.
Climate change
adaptation and mitigation
Services and products
promoting social and
environmental benefits
Employee well-being
Equal treatment and opportunities for
all
Community
engagement
Transparent and easy-
to-understand products
Data privacy and
security
Accessibility of services
and financial literacy
Business ethics
Supplier relationship
management
Pollution
Water and marine
resources
Biodiversity and
ecosystems
Circular economy
Other work-related rights
Animal welfare
The Triglav Group's impact on people and the environment
Financial impact on the Triglav Group's business operations
High
Low
Low
High
The Triglav Group's most material sustainability impacts, risks and opportunities (IROs) and their mapping across the value
chain
33
IRO concentration
in the value chain
Timeframe
Impact, risk or
opportunity
Upstream
Own activity
Downstream
Short-term
Medium-
term
Long-term
Climate
change
adaptation
and
mitigation
The Group's
insurance
business is primarily exposed to
the physical risks of climate change
, given the forecasted increase in
extreme weather events and related major CAT events. It is also exposed to the heightened risk of concentration of (primarily)
non-life insurance products within a limited geographic area, technological risks arising from advancements in motor vehicle
technology, and legal risks. These factors may significantly impact the Group financially through increased claims payments and
higher reinsurance costs.
The Group's
asset management
activity is exposed to both
physical and transition risks
(the risk associated with transitioning to a
low-carbon economy). Climate change and adaptation measures may affect the underlying value of the businesses in which the
Group invests or alter the value of assets under management.
Additionally, the Group is planning to decarbonise its own operations by reducing Scope 1 and 2 emissions (through reduced
consumption, increased use of green energy, and lowering emissions from company vehicles), while also focusing on reducing
Scope 3 emissions (financed emissions or the carbon footprint of the investment portfolio).
Risk
x
x
x
x
x
By offering insurance products and services that address climate change-related risks, the Group ensures financial security and
stability, effectively protecting clients' assets, lives and health. The Group reduces its carbon footprint through energy renovation
of its premises, careful energy management and solar power generation on its own facilities. Additionally, the Group increases the
share of electricity supplied from renewable sources , supports digitalisation to enable paperless operations and enhances remote
service availability (from home).
Actual positive
impact
x
x
x
x
Services and
products
promoting
social and
environmental
benefits
The integration of environmental, social and governance (ESG) factors into insurance and financial products presents an
opportunity for the Group
to gain and maintain market share
, driven by growing stakeholder demand and interest in such
products. By embedding sustainability factors into its services and products, the Group reduces sustainability risks. Through active
ownership, it can influence change across businesses, industries, regions and asset classes. Additionally, the Group identifies
opportunities in providing expert advisory services in risk management.
Opportunity
x
x
x
Offering sustainable products and services also presents
risks
, including regulatory and legal risks, reputational risks related to
potential greenwashing, and investment and insurance risks associated with sensitive economic activities such as fossil fuels,
weapons, tobacco, and gambling.
Risk
x
x
x
Through its insurance and financial services, the Group promotes the transition to a sustainable society and a climate-neutral
circular economy. Sustainable (ESG) investments support socially beneficial and environmentally sound projects, products,
technologies and processes. The investment policy reduces exposure to economic activities with harmful impacts on the
Actual positive
impact
x
x
x
x
33
ESRS2 SBM-3_01–07, SBM-3_12, S1.SBM-3_05, S3.SBM-3_02, S3.SBM-3_05,
S3.SBM-3_06, S4.SBM-3_01–08.
143
environment and society (e.g. coal mining, thermal power plants, tobacco production and gambling). Insurance products are
developed and updated to provide increased social and financial security (e.g. sickness, disability, unemployment insurance),
address increased sustainability risks (e.g. drought and flood insurance), and promote the transition to a low-carbon society (e.g.
sustainable mobility and solar power insurance, as well as insurance for zero-net technologies). The Group provides effective risk
protection for companies involved in the production of energy from renewable sources (solar power plants, wind farms and
others). Sustainable client behaviour is also incentivised through the premium policy, such as rewarding safe and economical
driving and offering a premium policy for agricultural insurance.
Employee
well-being
Ensuring quality working conditions contributes to high employee satisfaction and well-being, enhances the Group's competitive
advantage, strengthens employer
reputation
, and ultimately drives higher productivity and
increased revenue
.
Opportunity
Inadequate provision of quality working conditions may result in higher employee dissatisfaction and turnover, reduced
productivity, the loss of key staff, challenges in retaining new recruits and failure to achieve business objectives. Additionally,
implementing measures to improve working conditions can lead to increased labour or labour-related costs.
Risk
x
x
Employees are provided with a safe, healthy, reliable and stimulating working environment. The Group fosters cooperation, trust,
reliability and professional competence among employees, ensuring decent salaries for all. Constructive engagement with
employee representatives is pursued, exceeding legal requirements. A holistic and strategic approach to occupational safety and
health is adopted, focusing on identifying, reducing and managing risks associated with duties and the work environment.
Initiatives aimed at enhancing employee satisfaction and well-being are implemented, including in-house psychosocial support to
address mental health. Modern, hybrid work arrangements are introduced to help employees achieve a better work-life balance.
Potential
positive impact
x
x
Equal
treatment and
opportunities
for all
Diversity, inclusion, equal treatment and high employee competence contribute to greater satisfaction and productivity. A diverse
workforce enables the exchange of skills, abilities, initiatives and ideas, fostering innovation, responsiveness and engagement.
This leads to
potential financial opportunities and enhances the Triglav Group's reputation
among investors, clients and society.
Opportunity
Discrimination, harassment and unequal treatment of employees pose
risks
to reputation, increase staff turnover and may result
in financial consequences from legal actions.
Risk
x
x
An inclusive organisational culture fosters innovation and engagement, enabling the recruitment, development and retention of
competent, engaged and satisfied employees. A culture of diversity, equality and inclusion is actively promoted. Employees with
different types of disabilities are employed, and there is zero tolerance for discrimination, sexual and other harassment, or
workplace mobbing.
Potential
positive impact
x
x
Community
engagement
(a Triglav
Group-
specific
topic)
Prevention programmes, which are an important social aspect of the Group's sustainability impacts (and mandated by local
legislation in the insurance industry), help reduce risks and the potential for claims and minimise the amount of claims. In doing
so, they enhance the visibility, trust and reputation of the Group's brand(s).
Opportunity
x
x
x
Responsibility to the communities where the Group operates is exercised through prevention activities, as well as sponsorship
and donor partnerships. Prevention projects mainly focus on enhancing road, fire and health safety, as well as protecting people,
their property and the environment. Additionally, public infrastructure is being improved through collaborations with local
communities, non-governmental organisations and partners.
Actual positive
impact
x
x
Transparent
and easy-to-
understand
products
Comprehensive and clear information, along with fair pricing of insurance and financial products, reduces policy/contract
default
and lapse risks
. Unclear or ambiguous terms and conditions, along with potentially misleading marketing practices, can
undermine
the Group's brand reputation
, lead to legal disputes and reduce the number of clients (market share).
They can also
result in direct financial losses due to regulatory fines.
Risk
x
x
x
144
By providing transparent and clear information about products and services, the aim is to help clients make informed choices that
take into account their needs and capabilities.
Actual positive
impact
x
x
x
Data privacy
and security
Failure to adequately ensure the privacy of users and the security of their data can lead to
a loss of client trust and harm the
reputation of the Group
, with an indirect financial impact. However, privacy breaches and data loss can also have a direct financial
impact through fines from regulators and litigation. The digitalisation of business processes increases the Group's direct
vulnerability to disruptions and business failures caused by cyber-attacks, as well as its dependence on information and
communication technology (ICT) service providers.
Risk
x
x
x
x
The Group develops and offers insurance products to mitigate the risk of cyber-attacks, creating business
opportunities
.
Opportunity
x
x
By raising awareness and providing cybersecurity advice, adverse events are reduced, while insurance coverage and security for
clients are increased.
Actual positive
impact
x
x
x
Accessibility
of services
and financial
literacy
(sector-
specific
topic)
Greater accessibility to insurance and financial services, along with enhanced financial literacy, fosters greater trust and
strengthens the Group's
reputation
, thereby increasing
opportunities
for business expansion.
Opportunity
x
x
Access to services is ensured through a well-developed, diversified and accessible business network, serving less populated areas,
economically less developed countries and vulnerable individuals (e.g. disabled, hard of hearing, visually impaired). The Group
provides both traditional face-to-face (physical, analogue) sales methods and digital (remote) business options to simplify
procedures. Most points of sale in Slovenia are equipped to accommodate people with various disabilities, with aids for the
visually impaired and hearing-impaired clients available across all six regions. Financial literacy workshops and training courses
are conducted to help consumers identify financial risks and opportunities, empowering them to make informed decisions and
safeguard their financial security at all stages of life.
Actual positive
impact
x
x
Business
ethics
Potential legal proceedings and fines by regulators for breaches of rules in areas such as insider trading, tax evasion, conflicts of
interest, restriction of competition, SFDR disclosures, whistleblower protection, anti-money laundering and anti-corruption, as
well as unjustified claims payments to policyholders due to insurance fraud, can result in
financial losses
and negatively impact
the Group's
reputation
.
Risk
x
x
Insurance fraud and other unfair business practices may lead to higher premiums for policyholders and slower claims payouts.
Potential
negative impact
x
x
x
x
Supplier
relationship
management
Effective and responsible management of supplier relationships and partnerships (e.g. proactive and open communication,
enforcement of common minimum standards, settlement of commitments within agreed deadlines) can impact
the achievement
of the Group's business objectives
and
reputation
, as contractual partners are often the first point of contact with clients.
Through its behaviour and actions, the contractual network can also contribute to the Group's sustainability commitments (e.g.
reducing the Scope 3 carbon footprint).
Risk
x
x
Collaboration with a wide range of partners ensures comprehensive service and high client satisfaction. Partners are engaged in a
transparent and accountable manner, fostering mutual, long-term partnerships. Suppliers are assessed against regulatory and
expanded sustainability criteria to verify their compliance with employee rights, human rights and environmental legislation.
Training, workshops and sales motivation events are organised for partners in the external sales network.
Actual positive
impact
x
x
x
Explanation of negative materiality assessment
34
Based on a double materiality assessment process, material topics were grouped according to
those IROs that scored above the threshold for impact materiality, financial materiality or both.
Less material topics refer to those where no IROs were identified or where IRO scores were below
the defined thresholds.
▪
Energy (E1):
The sub-topic is not material for the Group, as the sector is not a major direct
energy consumer, nor is energy among the most critical resources for the Group's activities.
▪
Pollution (E2)
:
The topic is not material for the Group, as its two core activities do not
generate significant direct emissions to air, water or soil, nor do they use or produce
microplastics. Pollution also has no direct impact on the Group's operations. The indirect
impacts of the insurance and investment portfolio could not be quantified at this stage. As
the methodology develops over the years, such impacts will also be evaluated and
considered when assessing the materiality of sustainability topics.
▪
Water and marine resources (E3)
:
The Group's activities are not significant consumers of
water, nor do they rely on water or marine resources to carry out their operations.
Additionally, the Group has no impact on aquatic or marine ecosystemsThe indirect impacts
of the insurance and investment portfolio could not be quantified at this stage. As the
methodology develops over the years, such impacts will also be evaluated and considered
when assessing the materiality of sustainability topics.
▪
Biodiversity and ecosystems (E4):
The Group has no significant direct impact on biodiversity
or ecosystems. As a service provider, its premises are located in urban areas that are not
designated as Natura 2000 sites or other protected nature conservation areas.The indirect
impacts of the insurance and investment portfolio could not be quantified at this stage. As
the methodology develops over the years, such impacts will also be evaluated and
considered when assessing the materiality of sustainability topics.
.
▪
Circular economy (E5):
The Group does not directly utilise significant quantities of raw
materials in its insurance and financial activities, nor does it generate substantial amounts
of waste or contribute significantly to packaging waste related to its users The indirect
impacts of the insurance and investment portfolio could not be quantified at this stage. As
the methodology develops over the years, such impacts will also be evaluated and
considered when assessing the materiality of sustainability topics.
▪
Other work-related rights (S1):
Companies are expected to conduct appropriate due
diligence to prevent child and forced labour within their own operations and through their
relationships with others (e.g. suppliers, clients). The Group operates in the financial sector
and in the Adria region, where the risk of child or forced labour is negligible.
▪
Workers in the value chain (S2):
The Group's employees in the value chain work in the
insurance and finance sector in the Adria region, where working conditions are adequately
guaranteed by law and the risk of child or forced labour by contractors is negligible.
Potential
risks
relate to ensuring gender diversity and the rights of people with disabilities, as well as
potential discrimination based on sexual orientation and religious or political affiliation. The
Group's suppliers are primarily local, though there is a potential risk in sourcing products
made outside Europe.
▪
Animal welfare (G1):
The Animal welfare sub-topic is not material for the Group, as its
activities do not directly affect animals, nor is its core business dependent on animal.
34
IRO-2_03–10, IRO-2_12, IRO-2_13, E2.IRO-1_01–03, E3.IRO-1_01, 02, E4.IRO-1_01–16, E5.IRO-1_01, 02.
146
10.2
Environmental aspects
10.2.1
Climate change adaptation and mitigation (E1)
35
In line with the Group's Sustainable Development Policy and its strategic ambitions, the Group
promotes the transition to a sustainable society and reduces its impact on climate change.
Environmental impacts in business processes are minimised by reducing the Scope 1 and 2
carbon footprint. Key quantitative performance indicators by 2025:
▪
Reduce the location-based carbon footprint (Scope 1 and 2) per employee by 15% compared
to the 2019 base year;
▪
I
ncrease the share of electricity from renewable energy source to 75%;
▪
Increase the share of electric and hybrid vehicles in the fleet to at least 30%.
The Group has not yet defined a detailed methodology or scenario for the described objectives,
nor has it assessed their alignment with national, international or EU policies. Furthermore, the
environmental targets are not yet fully based on scientifically sound evidence, but efforts are
underway to explore alignment with recognised methodologies in the future. Relevant
stakeholders are involved in the target-setting process, as outlined in the double materiality
assessment process and in the stakeholder engagement table. The Group regularly monitors and
reports on progress towards its climate change mitigation goals, maintaining a commitment to
transparency and accountability in its sustainability efforts. In 2024, changes were made to the
carbon footprint measurement methodology by including the "fugitive emissions" sub-category
in Scope 1. For the remaining indicators, there were no changes to the targets or methodologies.
In the coming reporting periods, the Group will focus on further improving transparency and
gradually introducing methodological approaches to align with ESRS requirements.
36
The Group has not yet adopted greenhouse gas emission reduction targets based on science-
based targets aligned with limiting global warming to 1.5°C. A plan for adopting such targets is
intended for the near future.
37
In November 2024, as part of the approval of the Group's overall strategy to 2030, sustainability
targets were adopted to reduce Scope 1 and 2 carbon footprint and to increase the degree of
alignment of environmentally sustainable activities, as defined in the EU taxonomy Regulation,
within asset management and insurance activities.
Reducing the carbon footprint is a strategic objective, supported by a plan for carbon footprint
reduction by 2025, which is being implemented through the following activities:
38
▪
Improve energy efficiency of real properties and promote the sustainable use of energy,
including energy renovation of buildings, modernising heating, cooling and air-conditioning
systems, and install appliances and solar power plants that utilise renewable energy sources;
▪
Advance green mobility by installing additional charging stations and increasing the share
of electric and hybrid vehicles in the corporate fleet;
▪
Optimise the usage of space available for own use to create a modern business environment
and support new ways of working for employees, while ensuring a comfortable user
experience for clients.
▪
Raise employee awareness through training on reducing their carbon footprint, particularly
in areas such as heating, cooling, lighting and the use of electrical appliances.
35
E1-2_01, E1.MDR-A_01-04, E1-4_01, E1-4_18, E1-4_22, E1.MDR-M_01.
36
E1.MDR-T_01–13, E1-4_17.
37
E1-1_01–02, E1-1_15.
38
E1-1_03, E1-1_13–14, E1-3_01–02, E1-4_23.
147
10.2.1.1
The Triglav Group's carbon footprint
39
In 2024, the implementation of Scope 1 and Scope 2 carbon footprint reduction plans resulted
in a 12% reduction in the Group's carbon footprint according to the location-based method (by
10% according to the market-based method) and a 35% reduction according to the location-
based method compared to the base year (by 45% according to the market-based method). The
share of electricity consumption from renewable sources reached 66% in 2024. Solar power
plants began to operate on the roofs of five of the Company's office buildings in 2023 and cover
around 10% of its annual electricity consumption. The share of electric and hybrid vehicles in the
fleet grew from 11% to 17%.
40
Scope 1 carbon footprint
fell by 3% at Group level and by 8% compared to the base year. The
most significant changes relate to the inclusion of fugitive emissions in the Scope 1 calculation
and lower fuel consumption for company cars due to the higher share of electric and hybrid
vehicles in the fleet.
Scope 2 carbon footprint
according to the location-based method at Group level was 16% lower
(14% according to the market-based method), due to lower overall electricity consumption and
an increase in the share of green electricity purchased by the Group (by 4 percentage points). The
Company purchased almost all (99%) of the electricity used for its own premises from renewable
energy providers.
The Triglav Group's carbon footprint by scope
41
GHG emissions in tCO
2
e
Index
Quantity by activity
2024
2023
2025
target
2019
base year
2024/2023
2024/2025
2024/2019
Triglav Group
Scope 1.1 – Consumption of energy products from own
capacities
760
688
688
810
110
110
94
Scope 1.2 – Fuel consumption of company cars
1,816
1,978
1,683
1,981
92
108
92
Scope 1 – Direct GHG emissions
2,576
2,667
2,372
2,790
97
109
92
Scope 2 – Indirect GHG emissions (location-based)
4,462
5,326
6,858
8,068
84
65
55
Scope 2 – Indirect GHG emissions (market-based)
2,988
3,494
6,243
7,345
86
48
41
Total Scope 1–2 GHG emissions (location-based)
7,038
7,992
9,230
10,859
88
76
65
Total Scope 1–2 GHG emissions (market-based)
5,564
6,160
8,615
10,135
90
65
55
Carbon footprint (Scope 1–2) per employee (location-
based)
1.34
1.51
1.70
2.00
89
79
67
Carbon footprint (Scope 1–2) per employee (market-
based)
1.06
1.16
91
0
0
Carbon footprint (Scope 1–2) per 1 million EUR net
revenue (location-based)
5.05
5.61
90
0
0
Carbon footprint (Scope 1–2) per 1 million EUR net
revenue (market-based)
3.99
4.32
92
0
0
* Data for the year 2023 has not been audited.
39
E1-6_15, E1-6_29.
40
E1-3_03–04.
41
E1-4_03-16, E1-6_01-02, E1-6_04, E1-6_07, E1-6_09, E1-6_10, E1-6_11, E1-6_12, E1-6_13, E1-6_30, E1-6_31.
148
The Zavarovalnica Triglav's carbon footprint by scope
42
GHG emissions in tCO
2
e
Index
Quantity by activity
2024
2023
2025
target
2019
base year
2024/2023
2024/2025
2024/2019
Zavarovalnica Triglav
Scope 1.1 – Consumption of energy products from own
capacities
387
297
393
130
0
99
Scope 1.2 – Fuel consumption of company cars
444
457
546
97
0
81
Scope 1 – Direct GHG emissions
832
754
938
110
0
89
Scope 2 – Indirect GHG emissions (location-based)
2,013
2,762
3,719
73
0
54
Scope 2 – Indirect GHG emissions (market-based)
925
1,103
3,676
84
0
25
Total Scope 1–2 GHG emissions (location-based)
2,845
3,516
4,657
81
0
61
Total Scope 1–2 GHG emissions (market-based)
1,756
1,857
4,615
95
0
38
Carbon footprint (Scope 1–2) per employee (location-
based)
1.25
1.47
1.95
86
0
64
Carbon footprint (Scope 1–2) per employee (market-
based)
0.77
0.78
100
0
0
Carbon footprint (Scope 1–2) per 1 million EUR net
revenue (location-based)
3.03
3.50
87
0
0
Carbon footprint (Scope 1–2) per 1 million EUR net
revenue (market-based)
1.87
1.85
101
0
0
* Data for the year 2023 has not been audited.
Methodology and assumptions for calculating the carbon footprint
43
The Triglav Group's carbon footprint calculation is based on the requirements of the
international GHG Protocol, but only covers Scope 1 and 2 emissions. The challenges in
calculating
Scope
3
emissions
relate
to
systematic
data
collection
and
appropriate
methodological approaches. The Group applied a 5% materiality threshold in the calculation of
Scope 3 emissions, in line with GHG Protocol guidelines, meaning that only categories
contributing more than 5% to the total carbon footprint were included in the reporting. Based
on an internal materiality analysis, only category 3.15 – Financed emissions was included in
Scope 3 for public reporting. For Zavarovalnica Triglav, GHG emissions from financing were
calculated for the first time for 2024 in accordance with the PCAF standard. See Section
Financed
emissions
for more information.
For 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)
44
.
The carbon footprint calculation according to the location-based method includes all Group
companies that are fully consolidated and have office space or more than one employee and
therefore meet the materiality criterion.
Emission factors are sourced from internationally recognised databases, with the UK
government's website (Department for Energy Security and Net Zero) serving as a primary
source. BEIS provides publicly accessible data for calculating the carbon footprint of UK and
international businesses.
This change in emission factors affects the calculation of Scope 2 GHG emissions, as the overall
calculation for 2024 is based on updated data, ensuring greater consistency and alignment with
the best available sources. In addition, the 2023 data were recalculated using the updated
emission factors, resulting in minor adjustments to previously reported emissions. This update
has improved reporting quality and ensured more accurate monitoring of the impact of
electricity consumption on GHG emissions across different countries.
42
E1-6_01, E1-6_02, E1-6_04, E1-6_07, E1-6_09, E1-6_10, E1-6_11, E1-6_12, E1-6_13, E1-6_30, E1-6_31.
43
BP-2_03-06, E1.MDR-M_02, E1-6_18.
44
E1-4_20.
149
The websites or databases used as sources for emission factors and calculation assumptions for
each GHG category are detailed in the internal report and are subject to verification.
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.
For areas or premises for which consumption data are not available, estimates were made based
on their share of the total size of the premises. Surcharges were applied to the quantity of energy
products at Triglav, Upravljanje nepremičnin d.o.o., Zavarovalnica Triglav d.d. and subsidiaries
renting office space from Triglav, Upravljanje nepremičnin d.o.o. These represent the proportion
of properties used by the Company for which consumption data are unavailable. The applied
surcharges by category are as follows:
▪
Electricity consumption: 2% (rented properties without individual meters).
▪
Energy consumption for heating: 10% (rented properties, partially holiday and partially
owned properties where actual consumption data are not provided by the building
administrator).
Triglav Osiguranje d.d., Zagreb does not have complete data on gas consumption, so an estimate
based on received invoices is used. The carbon footprint data of Triglav, Zdravstvena
zavarovalnica d.d. from 1 January to 1 October 2024 were included in the Company's data.
The
carbon footprint data of Triglav, Zdravstvena zavarovalnica d.d. from 1 January to 1 October
2024 were included in the Company's data.
Energy consumption
The Group consumed 8% less energy on heating, cooling, lighting and electrical and electronic
equipment relative to 2023, while the Company reduced its energy consumption by 9%. Both the
Group and the parent company saw the largest increases in the consumption of fuel oil,
electricity and water for heating. However, the parent company recorded an increase in gas
consumption. Efforts are continually made to raise awareness among employees regarding the
rational use of energy, as well as the importance of 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).
150
Use of energy products at the Triglav Group and Zavarovalnica Triglav in MWh
45
MWh
Index
Quantity
2024
2023
2019
base year
2024/2023
2024/2019
Triglav Group
Heating water
MWh
3,988
4,347
4,714
92
85
Fuel oil
MWh
118
131
898
90
13
Gas
MWh
2,756
2,971
2,581
93
107
Wood pellets
MWh
182
185
124
98
147
Electricity
MWh
9,420
10,342
11,270
91
84
Green electricity
MWh
6,192
6,374
118
97
5,263
Share of green electricity (%)
%
66%
62%
1%
107
6,297
Generated electricity
MWh
16,464
17,976
19,587
92
84
Zavarovalnica Triglav
Heating water
MWh
3,374
3,692
4,044
91
83
Fuel oil
MWh
26
100
234
26
11
Gas
MWh
1,445
1,359
1,732
106
83
Wood pellets
MWh
0
0
0
0
0
Electricity
MWh
5,182
5,867
6.291
88
82
Green electricity
MWh
5,113
5,806
118
88
4,346
Share of green electricity (%)
%
99%
99%
2%
100
5,276
Generated electricity
MWh
10,026
11,017
12,301
91
82
*The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
Total energy consumption related to own operations at the Triglav Group and Zavarovalnica
Triglav
46
Total energy consumption in
MWh
Index
2024
2023*
2024/2023
Triglav Group
Total energy consumption from fossil sources
10,441
11,820
88
Total energy consumption from nuclear sources
39
0
Total energy consumption
6,913
6,559
105
– Fuel consumption for renewable sources including biomass, biofuels, biogas, hydrogen
from renewable sources, etc.
182
185
98
– Consumption of purchased or acquired electricity, heat, steam, and cooling from
renewable sources
6,192
6,374
97
– Consumption of self-generated non-fuel renewable energy
539
0
Total energy consumption
17,394
18,379
95
Zavarovalnica Triglav
Total energy consumption from fossil sources
4,991
5,259
95
Total energy consumption from nuclear sources
0
0
0
Total energy consumption from renewable sources
5,573
5,806
96
– Fuel consumption for renewable sources including biomass, biofuels, biogas, hydrogen
from renewable sources, etc.
0
0
0
– Consumption of purchased or acquired electricity, heat, steam, and cooling from
renewable sources
5,113
5,806
88
– Consumption of self-generated non-fuel renewable energy
459
0
Total energy consumption
10,564
11,065
95
*The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
45
E1-5_01–17.
46
E1-5_01–09.
151
Financed emissions
In 2024, for the first time, the absolute financed greenhouse gas (GHG) emissions and carbon intensity (tCO
₂
e/million EUR invested) of the Company's
investment portfolio were calculated in line with the Partnership for Carbon Accounting Financials (PCAF) guidelines. While the aim is to cover as
large a share of the portfolio as possible, limitations remain due to methodology development and data availability. Despite these limitations, efforts
continue to gradually expand portfolio coverage over time.
Total financed GHG emissions amounted to 446,878 tCO
₂
e in 2024 (431,357 tCO
₂
e in 2023). The calculation of financed GHG emissions covered 73%
of the carrying value of the investment portfolio, excluding investments covering insurance policies linked to external benchmarks. Carbon intensity
stood at 236.7 tCO
₂
e/million EUR invested, downy by 11% from the 2023 level (266.3 tCO
₂
e/million EUR invested). For the calculation of GHG
emissions, data reported by the companies were used whenever possible. In other cases, estimates from various providers were applied. The average
rating of the data used is presented on a scale of 1 to 5, with 1 representing the highest quality.
The table below presents the carrying amount of the Company's investment portfolio, the absolute value of the financed GHG emissions, the carbon
intensity, the data quality assessment and the absolute values of the financed GHG emissions by asset class in accordance with IFRS 9 and PCAF
guidelines. Scope 3 financed emissions are shown separately, acknowledging the limitations and challenges associated with accurately determining
this portion of the emissions.
Financed emissions of Zavarovalnica Triglav
2024
2023**
Carrying
amount
(EUR
thousand)
Carbon
intensity
(tCO
2
e/million
EUR invested)
PCAF data
quality
assessment
Financed
emissions
(tCO
2
e): Scope
1 and 2
Financed
emissions
(tCO
2
e): Scope 3
Financed
emissions
(tCO
2
e): Total
Carrying
amount
(EUR
thousand)
Carbon
intensity
(tCO
2
e/million
EUR invested)
PCAF data
quality
assessment
Financed
emissions
(tCO
2
e): Scope
1 and 2
Financed
emissions
(tCO
2
e): Scope 3
Financed
emissions
(tCO
2
e): Total
Financial investments*
1,603,237
222.2
1.9
212,258
143,999
356,256
1,363.860
254.9
1.9
170,721
176,861
347,582
Government debt securities
905,935
173.7
1.9
157,333
157,333
640,675
176.1
1.8
112,813
-
112,813
Financial debt securities
354,512
60.5
2.4
3,798
17,648
21,446
397,534
61.1
2.4
5,047
19,228
24,276
Corporate debt securities
188,804
884.9
2.3
43,170
123,905
167,076
205,852
975.7
2.1
45,553
155,293
200,846
Compound debt securities
1,048
0.2
1.0
0
0
0
1,035
0.2
1.0
0
0
0
Collective investment undertakings
145,318
n/a
n/a
n/a
n/a
n/a
111,328
n/a
n/a
n/a
n/a
n/a
Shares
7,621
1,364.9
3.5
7,957
2,445
10,402
7,436
1,297.3
3.5
7,307
2,340
9,647
Financial contract assets
284,583
318.4
1.9
37,351
53,271
90,622
255,841
327.5
1.9
33,842
49,934
83,776
Government debt securities
98,607
175.0
1.9
17,259
-
17,259
78,027
175.2
2.2
13,670
-
13,670
Financial debt securities
50,643
32.2
2.1
240
1,390
1,630
57,285
31.8
2.1
304
1,517
1,820
Corporate debt securities
50,835
1,003.0
2.1
17,733
33,254
50,987
47,084
1,138.7
2.1
17,941
35,675
53,616
Shares
70,532
294.1
2.0
2,120
18,627
20,746
47,200
310.8
2.0
1,928
12,742
14,669
Collective investment undertakings
13,965
n/a
n/a
n/a
n/a
n/a
26,245
n/a
n/a
n/a
n/a
n/a
Total
1,887,820
236.7
1.9
249,609
197,269
446,878
1,619,702
266.3
1.9
204,563
226,794
431,357
* Excluding unit-linked investments.
**The figures for 2023 are unaudited.
152
Summary of the methodology for calculating financed GHG emissions
The methodology for calculating financed GHG emissions is based on PCAF guidelines. Two of the seven asset classes addressed by the current PCAF
guidelines are included in the calculation. Financed GHG emissions are calculated using the following formula:
Financed GHG emissions = ∑ (Outstanding Amount / Enterprise Value Including Cash (EVIC) × Company GHG emissions)
Outstanding amount is the value of equity or debt stake in the recipient company. EVIC (Enterprise Value Including Cash) is the total value of the
company, including equity, debt and cash. Company GHG emissions comprise its Scope 1 (direct emissions), Scope 2 (indirect emissions from energy)
and Scope 3 (indirect emissions from the value chain) emissions. For the
Government debt securities
asset class, the EVIC in the denominator is
appropriately proxied by the country's gross domestic product (GDP) adjusted for purchasing power parity (PPP).
Calculations are based on disclosed (i.e. reported) company and country data. When specific data are unavailable, modelled emissions from various
providers are used. Missing data are addressed using the adjusted shares technique, whereby the shares are adjusted to ensure that the total share
of units in the portfolio with available specific data represents the whole.
The coverage of financed emissions is being gradually expanded, with a focus on improving data quality and methodology sophistication. The
objective is to continuously refine the methodology by including additional asset classes and enhancing data quality and availability for a more
accurate calculation of emissions. These calculations enable greater transparency and tracking of investment impacts on GHG emissions.
153
10.2.1.2
Climate risk management
47
The Company places particular emphasis on adequately addressing sustainability risks, with a
specific focus on climate change risks that may impact its financial position.
48
An analysis of
climate change risk exposure is conducted annually as part of the own risk and solvency
assessment (ORSA) process. This analysis is based on climate scenario analyses for both the
insurance and investment portfolios. The scenarios are selected using the EIOPA
49
template the
calculations are tailored to the Company's risk profile.
50
Assumptions for climate scenarios and
financial statements are aligned in the calculations.
51
These analyses support the identification
and assessment of physical risks in the short, medium and long term
52
and facilitate the
adaptation of internal risk management processes.
The Company applies various risk analysis methods to assess and measure transition risks (CPRS
sectors
53
, PACTA tool
54
, PCAF
55
, and qualitative analysis of the impact on assets and liabilities
56
)
and physical risks (exposure to natural disasters, ND-GAIN Index
57
, INFORM Risk Indicator
58
, and
qualitative analysis of the impact on assets and liabilities
59
.
Identified climate change risks and exposure periods –
Description of the resilience analysis
In the context of the CPRS methodology, transition risk has been identified across all six
categories of climate policy relevant sectors in both the insurance and investment portfolios. As
part of the ORSA process, physical risks are assessed in relation to exposure to flooding, sea-level
rise, extreme weather events, forest fires and drought.
Analyses indicate that the most significant damages in Slovenia (Central Europe) are likely to
result from forest fires, flooding and hail. Although the INFORM risk indicator rates Slovenia's
47
E1.SBM-3_06, E1.IRO-1_01–16.
48
E1.SBM-3_02.
49
Consultation Paper on Application Guidance for Using Climate Change Scenarios in the ORSA, with Methods Aligned
to NGFS Scenarios Based on the GHG Principle.
50
E1.SBM-3_03, 04.
51
E1.IRO-1_16.
52
E1.IRO-1_05, E1.SBM-3_05.
53
The Climate Policy Relevant Sectors (CPRS) methodology divides sectors into nine categories, six of which are
exposed to potential transition risks (fossil fuel, infrastructure, energy-intensive, buildings, transportation and
agriculture). The remaining three categories (finance, development and progress, and other) are only indirectly related
to transition risks or are of minor relevance.
54
The PACTA tool incorporates a comprehensive set of climate-related data to assess asset-related risks up to the level
of the parent company.
55
The PCAF (Partnership for Carbon Accounting Financials) methodology estimates a company's Scope 3 carbon
footprint based on the proportion of the Scope 1, 2 and 3 carbon footprints of the entity, whether natural or legal, to
which the company has direct exposure.
56
Taking into account the findings from applying the CPRS method, the PCAF methodology and the PACTA tool, the
materiality of transition risk is reviewed across different time horizons (short, medium and long term) from the
perspective of the investment and insurance portfolios.
57
The Notre Dame Global Adaptation Initiative (ND-GAIN) Index measures a country's current vulnerability to climate
change and evaluates its readiness to utilise private and public sector investments for implementing adaptation
measures.
58
The European Commission's indicator evaluates countries based on the risks of humanitarian crises and disasters
that may exceed their emergency response capacities. It comprises the following dimensions: risk and exposure,
vulnerability, and lack of coping capacity.
59
The materiality of physical risks is reviewed by time horizon (short, medium, long term) from the perspective of the
investment and insurance portfolios, with a separate assessment of the exposure of insurance technical provisions
and natural catastrophe events.
154
flood risk as medium, the country's high exposure to flooding makes its societal impact
material.
60
There are no significant changes in the materiality assessment of individual climate change risks
compared to the previous reporting period.
61
The primary short-term climate change risks (up to
five years) are
physical risks
within the insurance portfolio, assessed as material, particularly for
natural catastrophe events involving floods
62
.
These physical risks are expected to remain
relevant in the medium and long term, with materiality recognised in specific insurance classes
over an extended time horizon. Physical risks in the investment portfolio are considered
immaterial; however, these risks are more challenging to assess due to potential indirect
impacts. The direct impact on investments is anticipated to be primarily on real property, an area
of limited exposure for the Company.
For more information see Section
2.8.2.1
Non-life
underwriting risks in the Accounting Report.
63
Transition risks
in the investment portfolio are currently assessed as immaterial.
64
These risks
are anticipated to become at most material in the medium term (5–10 years), with potential
materiality to be more likely in the long term (beyond 10 years).
65
Insurance and asset management activities, which account for over 97% of the Group's total
revenue, are not significantly exposed to transition risks. Additionally, the core activities do not
generate sales income from sectors such as fossil fuels, the manufacture of chemicals,
controversial weapons, or growing of tobacco or manufacture of tobacco products.
66
The gross written premium of Zavarovalnica Triglav's non-life segment for the year 2024 based on
the customer's activities related to coal, oil, and gas (in EUR)
67
Gross written premium
Share
Oil-related activities
2,042,334
0.24%
Gas-related activities
98,672
0.01%
Coal-related activities
14,302,224
1.65%
Total
866,712,583
100.00%
* Exposures requiring allocation across other segments using the look-through method are captured; in the insurance portfolio, this pertains to inward
reinsurance business.
10.2.1.3 Services and products promoting social and environmental benefits
68
Presented below are the most important Group's services and activities that promote social and
environmental benefits.
Comprehensive car insurance and roadside assistance insurance:
These insurance products
include all the necessary covers for electric and hybrid vehicles.
Micromobility insurance:
Insurance for small electric means of transport, which is designed to
promote the use of zero-emission means of transport.
60
According to internally defined materiality limits for exposure.
61
SBM-3_11
62
E1.SBM-3_06.
63
E1.SBM-3_01, SBM-3_09, SBM-3_08, E1-9_01, E1-9_02, E1-9_03
64
E1-9_14.
65
SBM-3_06.
66
ESRS 2 SBM-1_09-20, E1-9_29, E1-9_36.
67
E1-9_30-35.
68
S4.SBM-3_05, GRI G4-FS7, G4-FS8, SDG 2, SDG 7, SDG 9, SASB: FN-IN-410b.1, FN-IN-410b.2.
155
Insurance for solar, wind, hydroelectric and biogas plants:
This insurance provides adequate
insurance cover to all owners and users of energy from renewable sources.
Agricultural insurance:
The focus is on insurance of small and medium-sized livestock farms,
which are a significantly smaller burden on the environment than intensive animal farming. For
Slovenia, two business decisions were made to limit the availability of crop insurance in the part
related to intensive orchard insurance and prioritise participation in prevention programmes for
sustainable food production in 2024. These programmes include initiatives such as irrigation
systems to mitigate summer drought, sprinkler systems to guard against spring frost, anti-hail
nets, greenhouses and tunnels.
Mutual funds and discretionary mandate services:
The
Triglav Okoljska perspektiva
fund focuses
on investments in selected companies that develop, produce and offer products or services using
environmentally less harmful technologies. As of 1 December 2024, all funds managed by Triglav
Skladi have been restructured to promote environmental and social characteristics, aligning with
Article 8 of the Regulation on sustainability-related disclosures (SFDR). In the area of
discretionary mandates, the offering has been updated to include only products adhering to
sustainability principles for new clients.
Life insurance:
Includes insurance policies designed to enhance social and financial security,
including sickness, disability and unemployment insurance. The Fleks unit-linked life insurance
product, featuring mutual funds offered by Triglav Skladi, has been redesigned to align with
social and environmental objectives. Unit-linked insurance products facilitating long-term
savings, along with annuities providing stable income in old age, help older individuals achieve
a better and more secure retirement while reducing the financial burden of long-term care or
residing in a care home.
Health insurance and services:
A comprehensive range of healthcare products and services is
being developed, focusing on the needs of clients in different life circumstances (healthy, acutely
ill or chronically ill). These insurance products primarily address health-related non-life risks,
thus reducing the social risks for the population. Another key segment includes companies
seeking increasingly integrated services in the area of employee healthcare (insurance,
preventive check-ups, health promotion at the workplace and similar).
Asset management:
Since 2021, in asset management, the Group has been increasing the share
of green bonds issued to fund environmental projects, bonds issued to fund projects with a social
impact (social bonds) and sustainable bonds intended to fund either green or social goals of
issuers. The Group's goal by 2025 is to double the share of the aforementioned three bond
categories compared to the 2020 base year.
In 2024, written premium from insurance products that promote social and environmental
benefits decreased by 8%, while assets under management in funds and discretionary mandate
assets that incorporate sustainability aspects increased by 74%. The value of these increased
from EUR 1.14 billion in 2023 to EUR 1.98 billion. The share of bond investments with sustainable
characteristics in debt securities rose to 12.9% (2023: 11.1%).
156
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
2024
2023
2024/2023
Crop insurance
12,727,873
17,738,167
72
Electric vehicle insurance
6,454,648
4,699,300
137
Micromobility insurance
523,458
527,467
99
Solar power plant insurance
2,997,657
1,816,700
165
Wind power plants insurance
175,116
168,423
104
Total gross written premium
22,878,752
24,950,057
92
Assets under management of funds that consider
sustainability aspects
1,977,254,895
1,139,026,941
174
* 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.
Bond investments of the Triglav Group with sustainable characteristics
69
Sustainable debt securities
Index
Share in debt securities
31 Dec 2024
31 Dec 2023
2024/2023
31 Dec 2024
31 Dec 2023
Debt securities with social impact
95,206,404
92,894,804
102
3.6%
3.9%
Debt securities green
221,398,009
157,009,420
141
8.4%
6.7%
Debt securities sustainable
22,821,428
12,595,979
181
0.9%
0.5%
Total
339,425,841
262,500,203
129
12.9%
11.1%
* Bonds with a social impact are an instrument for funding social services.
** Green bonds are an instrument for funding environmental projects, the funds of which are intended for ecologically efficient products, technologies and processes, pollution
prevention and control, sustainable management of natural resources, sustainable management of water resources, renewable energy use, energy efficiency and clean
transport.
*** Sustainable bonds are an instrument for funding sustainability projects and a combination of green and social impact bonds. Funding is often conditional on achieving
sustainability goals.
10.2.2
Disclosures under the EU Taxonomy Regulation
10.2.2.1
Key performance indicators related to investments
70
In 2020, the European Union (EU) adopted Regulation (EU) 2020/852, known as the EU
Taxonomy, which established a fundamental regulatory framework to promote sustainable
investments. The regulation is designed to improve the transparency of sustainability
disclosures for financial market participants and other companies.
The EU Taxonomy provides a standardised system for identifying environmentally sustainable
activities. To this end, the EU has set six environmental objectives: (1) climate change mitigation,
(2) climate change adaptation, (3) sustainable use and protection of water and marine resources,
(4) transition to a circular economy, (5) pollution prevention and control, and (6) the protection
and restoration of biodiversity and ecosystems.
The EU Taxonomy defines taxonomy-eligible and taxonomy-aligned economic activities. The
technical assessment criteria first define taxonomy-eligible activities, i.e. the activities that can
contribute positively to at least one EU environmental objective. If these activities are found,
through further assessment based on specific technical criteria, to contribute significantly to at
least one of these six objectives, while doing no significant harm to the remaining five objectives,
and are carried out in compliance with minimum safeguards and meet the technical screening
criteria, then such activities are considered to be taxonomy-aligned and thus environmentally
sustainable activities.
69
FN-AC-410a.1.
70
E1-1_08.
157
The Group's investments have an impact on companies, economic activities and asset classes, with a particular focus on climate change. In response,
it is adapting its business strategy and has set key performance indicators as part of its strategic ambitions for 2030 to guide its investment strategy.
These include progressively reallocating capital towards sustainable investments and supporting the transition to a low-carbon economy:
▪
Increase the share of green, sustainable and socially responsible (ESG) bonds to 15% of the bond portfolio.
▪
Expand the range of investment funds meeting the criteria of Articles 8 and 9 of the SFDR.
▪
Keep investment exposure to the Coal Exit List below 1%.
▪
Increase the EU taxonomy alignment of investments.
When offering insurance products with an investment component, the Group considers sustainability criteria that enable clients to select investment
options with sustainable characteristics. The expansion of the range of funds under Articles 8 and 9 of the SFDR provides clients with opportunities
to invest in assets that promote environmental and/or social characteristics.
Through its strategic ambitions for 2030, the Group reaffirms its commitment to sustainable development, responsible investment and product
management, creating added value for both clients and society.
The proportion of the Group's investments that are directed at, or are associated with, funding of taxonomy-aligned activities in relation to total
investments
Share
Value in EUR
2024
2023
2024
2023
The weighted average value of all the investments of insurance or reinsurance
undertakings that are directed at funding, or are associated with taxonomy-
aligned economic activities relative to the value of total assets covered by the KPI,
with following weights for investments in undertakings per below:
The weighted average value of all the investments of insurance
or reinsurance undertakings that are directed at funding, or are
associated with taxonomy-aligned economic activities, with
following weights for investments in undertakings per below:
Turnover-based
1.51%
0.89%
Turnover-based
33,441,108.32
18,510,977.04
Capital expenditures-based
2.47%
1.96%
Capital expenditures-based
54,548,190.64
40,927,894.24
The percentage of assets covered by the KPI relative to total investments of
insurance or reinsurance undertakings (total AuM). Excluding investments in
sovereign entities.
57.00%
60.80%
The monetary value of assets covered by the KPI. Excluding
investments in sovereign entities.
2,209,254,391.90
2,090,509,481.76
The percentage of derivatives relative to total assets covered by the KPI.
0.00%
The value in monetary amounts of derivatives.
19,810.22
The proportion of exposures to financial and non-financial undertakings not
subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered
by the KPI:
Value of exposures to financial and non-financial undertakings
not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings
33.66%
26.08%
For non-financial undertakings
743,710,273.14
545,160,245.51
For financial undertakings
23.87%
22.06%
For financial undertakings
527,371,418.76
461,264,601.68
The proportion of exposures to financial and non-financial undertakings from non-
EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total
assets covered by the KPI:
Value of exposures to financial and non-financial undertakings
from non-EU countries not subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non-financial undertakings
26.88%
23.65%
For non-financial undertakings
593,783,448.61
494,451,493.47
For financial undertakings
12.22%
14.92%
For financial undertakings
269,905,273.76
311,929,756.54
158
The proportion of exposures to financial and non-financial undertakings subject to
Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings
subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings
12.39%
19.02%
For non-financial undertakings
273,657,827.09
397,650,294.32
For financial undertakings
15.47%
32.84%
For financial undertakings
341,839,027.02
686,434,340.25
The proportion of exposures to other counterparties over total assets covered by
the KPI:
14.60%
0%
Value of exposures to other counterparties:
322,656,035.66
0
The proportion of the insurance or reinsurance undertaking's investments other
than investments held in respect of life insurance contracts where the investment
risk is borne by the policy holders, that are directed at funding, or are associated
with, taxonomy-aligned economic activities
76.08%
68.1%
Value of insurance or reinsurance undertaking's investments
other than investments held in respect of life insurance contracts
where the investment risk is borne by the policy holders, that are
directed at funding, or are associated with, taxonomy-aligned
economic activities
1,680,871,821.54
1,422,918,003.17
The value of all the investments that are funding economic activities that are not
taxonomy-eligible relative to the value of total assets covered by the KPI:
91.02%
95.68%
Value of all the investments that are funding economic activities
that are not taxonomy-eligible:
2,010,831,452.85
2,000,098,817
The value of all the investments that are funding taxonomy-eligible economic
activities, but not taxonomy-aligned relative to the value of total assets covered by
the KPI:
7.47%
2.37%
Value of all the investments that are funding taxonomy-eligible
economic activities, but not taxonomy-aligned:
164,981,830.73
49,482,770
Additional, complementary disclosures:
breakdown of numerator of the KPI
The proportion of taxonomy-aligned exposures to financial and non-financial
undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total
assets covered by the KPI:
Value of taxonomy-aligned exposures to financial and non-
financial undertakings subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non-financial undertakings:
For non-financial undertakings:
Turnover-based
1.2%
0.74%
Turnover-based
26,016,026.25
15,498,468.58
Capital expenditures-based
2.1%
1.78%
Capital expenditures-based
46,453,162.12
37,165,840.90
For financial undertakings:
For financial undertakings:
Turnover-based
0.3%
0.07%
Turnover-based
7,425,082.06
1,566,333.41
Capital expenditures-based
0.4%
0.10%
Capital expenditures-based
8,095,028.52
2,054,249.61
The proportion of the insurance or reinsurance undertaking's investments other
than investments held in respect of life insurance contracts where the investment
risk is borne by the policy holders, that are directed at funding, or are associated
with, taxonomy-aligned economic activities:
Value of insurance or reinsurance undertaking's investments
other than investments held in respect of life insurance contracts
where the investment risk is borne by the policy holders, that are
directed at funding, or are associated with, taxonomy-aligned
economic activities:
Turnover-based
1.3%
0.84%
Turnover-based
22,670,495.68
9,363,293.36
Capital expenditures-based
2.1%
1.77%
Capital expenditures-based
35,058,309.28
19,734,394.65
The proportion of taxonomy-aligned exposures to other counterparties in over
total assets covered by the KPI:
Value of taxonomy-aligned exposures to other counterparties
over total assets covered by the KPI:
Turnover-based
0.0%
0.0%
Turnover-based
0.00
0.00
Capital expenditures-based
0.0%
0.0%
Capital expenditures-based
0.00
0.00
* Data for the year 2023 has not been audited.
159
Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities – provided 'do-not-significant-harm' (DNSH) and social
safeguards positive assessment:
2024
2023
2024
2023
Climate change mitigation
Climate change mitigation
Transitional activities: A %
Transitional activities: A %
Turnover:
0.14%
/
Turnover:
3,054,664.53
/
CapEx:
0.18%
/
CapEx:
3,904,748.49
/
Enabling activities: B %
Enabling activities: B %
Turnover:
0.57%
0.84%
Turnover:
12,674,536.38
17,481,017.24
CapEx:
0.95%
1.91%
CapEx:
21,061,440.88
39,994,633.71
Climate change adaptation
Climate change adaptation
Enabling activities: B %
Enabling activities: B %
Turnover:
0.02%
0.07%
Turnover:
360,974.26
1,359,344.51
CapEx:
0.10%
0.11%
CapEx:
2,178,203.68
2,223,837.01
The sustainable use and protection of water and marine resources
The sustainable use and protection of water and marine resources
Enabling activities: B %
Enabling activities: B %
Turnover:
0.00%
/
Turnover:
6,498.61
/
CapEx:
0.00%
/
CapEx:
20,978.06
/
The transition to a circular economy
The transition to a circular economy
Enabling activities: B %
Enabling activities: B %
Turnover:
0.02%
/
Turnover:
353,113.76
/
CapEx:
0.01%
/
CapEx:
117,704.59
/
Pollution prevention and control
Pollution prevention and control
Enabling activities: B %
Enabling activities: B %
Turnover:
0.00%
/
Turnover:
11.74
/
CapEx:
0.00%
/
CapEx:
9.80
/
The protection and restoration of biodiversity and ecosystems
The protection and restoration of biodiversity and ecosystems
Enabling activities: B %
Enabling activities: B %
Turnover:
0.00%
/
Turnover:
0
/
CapEx:
0.00%
/
CapEx:
0
/
* Data for the year 2023 has not been audited.
160
Nuclear energy and fossil gas related activities
Row
Nuclear energy related activities
31 Dec 2024
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
YES
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
YES
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
YES
Row
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
YES
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
YES
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
YES
161
Taxonomy-aligned economic activities (denominator)
Revenue
CapEx
(BPS + PPS)
Climate change
mitigation
Climate change
adaptation
(BPS + PPS)
Climate change
mitigation
Climate change
adaptation
Row
Economic activities
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
647,030.21
0.03
670,400.76
0.03
43,075.98
0.00
43,136.67
0.00
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
821,194.80
0.04
844,565.35
0.04
3,144,667.54
0.14
3,144,667.54
0.14
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
5,637,441.70
0.26
5,663,590.57
0.26
39.60
0.00
2,150,193.61
0.10
2,151,582.77
0.10
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
110,724.93
0.01
110,824.51
0.01
326,495.37
0.01
326,495.37
0.01
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
5,227,540.02
0.24
5,158,724.25
0.23
6,677,298.36
0.30
6,672,570.04
0.30
6,672,570.04
0.30
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
106,241.11
0.00
106,241.11
0.00
1,205,295.69
0.05
1,205,295.69
0.05
7.
Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
51,924,212.18
2.35
51,895,236.21
2.35
17,090,633.46
0.77
61,498,358.79
2.78
61,449,746.45
2.78
17,104,749.19
0.77
8.
Total applicable KPI
64,474,384.95
2.92
64,449,582.76
2.92
23,767,971.42
1.08
75,040,657.02
3.40
74,993,494.55
3.39
17,104,749.19
0.77
162
Taxonomy-aligned economic activities (numerator)
Revenue
CapEx
(BPS + PPS)
Climate change
mitigation
Climate change
adaptation
(BPS + PPS)
Climate change
mitigation
Climate change adaptation
Row
Economic activities
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
1.
Amount
and
proportion
of
taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
5,341.84
0.00
5,341.84
0.00
-
-
9,576.71
0.00
10,034.56
0.00
-
-
2.
Amount
and
proportion
of
taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
234,168.59
0.06
218,980.24
0.01
-
-
1,412,598.60
0.06
1,412,851.76
0.06
-
-
3.
Amount
and
proportion
of
taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
7,348,683.13
0.33
7,464,733.72
0.34
-
-
4,742,697.36
0.21
4,745,592.85
0.21
-
-
4.
Amount
and
proportion
of
taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
4,886.22
0.00
6,081.17
0.00
-
-
44,827.49
0.00
45,715.71
0.00
-
-
5.
Amount
and
proportion
of
taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
177,894.57
0.01
166,119.46
0.01
591,430.64
0.03
453,234.01
0.02
459,331.51
0.02
-
-
6.
Amount
and
proportion
of
taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
24,271.72
0.00
24,271.74
0.00
-
-
35,000.98
0.00
35,003.00
0.00
3,983.17
0.00
7.
Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6
above in the numerator of the applicable KPI
230,575,832.97
10.44
231,688,206.26
10.49
105,953,967.66
4.80
235,044,110.51
10.65
235,392,867.72
10.65
101,418,655.30
4.59
8.
Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the
applicable KPI
238,371,079.03
10.84
239,573,734.41
10.84
106,545,398.30
4.82
241,742,045.66
10.94
242,101,397.11
10.96
101,422,638.47
4.59
163
Taxonomy-eligible but not taxonomy-aligned economic activities
Revenue
CapEx
(BPS + PPS)
Climate change
mitigation
Climate change
adaptation
(BPS + PPS)
Climate change
mitigation
Climate change
adaptation
Row
Economic activities
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activity referred to
in Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
340,542.22
0.02
349,890.43
0.02
-
-
97,488.56
0.00
97,488.56
0.00
-
-
2.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activity referred to
in Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
342,415.54
0.02
351,763.70
0.02
-
-
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activity referred to
in Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
689,539.55
0.03
699,803.47
0.03
-
-
133,977.87
0.01
133,977.87
0.01
-
-
4.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activity referred to
in Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
4,175,951.19
0.19
4,272,614.61
0.19
-
-
2,852,961.48
0.13
4,971,575.18
0.23
27,014.70
0.00
5.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activity referred to
in Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
13,410,286.91
0.61
13,408,003.02
0.61
6,677,298.36
0.30
12,081,600.89
0.55
12,094,058.49
0.55
-
-
6.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activity referred to
in Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
709,250.20
0.03
712,028.52
0.03
-
-
1,501,414.65
0.07
1,498,175.86
0.07
-
-
7.
Amount and proportion of other taxonomy-
eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
118,420,267.95
5.36
119,970,948.84
5.43
27,222,948.09
1.23
116,677,457.96
5.28
104,255,545.26
4.72
23,814,310.75
1.08
8.
Total amount and proportion of taxonomy eligible
but not taxonomy- aligned economic activities in
the denominator of the applicable KPI
138,088,253.57
6.25
139,765,052.61
6.33
33,900,246.45
1.53
133,344,901.41
6.04
123,050,821.23
5.57
23,841,325.45
1.08
164
Taxonomy non-eligible economic activities
Revenue
CapEx
Row
Economic activities
Amount
%
Amount
%
1.
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance
with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
80,323.53
0.00
-
-
2.
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance
with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1,242,450.79
0.06
1,008,423.58
0.05
3.
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance
with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
298,989.65
0.01
207,548.21
0.01
4.
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance
with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
524,328.80
0.02
104,619.28
0.00
5.
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance
with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
6,664,908.04
0.30
6,677,642.41
0.30
6.
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance
with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
80,749.56
0.00
426.03
0.00
7.
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
158,061,755.63
7.15
153,237,451.50
6.94
8.
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI’
166,953,506.01
7.56
161,236,111.01
7.30
The Group reports on the proportion of taxonomy-eligible assets, the proportion of taxonomy-aligned assets, and a breakdown of the key
performance indicator per environmental objective. The framework for implementing the taxonomy is the calculation of statutory metrics,
particularly the key performance indicator – the value and proportion of taxonomy-aligned investments. Currently, taxonomy indicators are not
integrated in the Group's investment process.
All assets that finance economic activities fall under the taxonomy-alignment indicators (KPIs). These assets relate to the Group's portfolios covering
obligations for non-life, life, pension and unit-linked insurance and the Company's own funds. They primarily include balance sheet items such as
financial investments, financial contract assets and investment property, But exclude intangible assets, real property and own-use equipment. Total
investments also exclude insurance and reinsurance contract assets and liabilities.
Exposures to central governments, central banks, supranational issuers, and additionally cash and cash equivalents are also excluded from total
investments in accordance with Commission Delegated Regulation (EU) 2021/2178.
The proportion of total investments covered by the KPI as at 31 December 2024 was 56.56%. To ensure comparability with other information in the
Annual Report, taxonomy metrics are calculated based on the carrying amounts of investments.
A company's economic activities are taxonomy-eligible if they are listed in Commission Delegated Regulation (EU) 2021/2139, which complements
the EU Taxonomy Regulation. According to the EU Taxonomy Regulation, economic activities are taxonomy-aligned if they make a significant
165
contribution to one or more environmental objectives without doing significant harm to any of the other objectives (the "do no significant harm"
principle or DNSH), and in addition, they must be carried out in compliance with minimum safeguards and meet certain technical criteria.
1.
For the investment portfolio segment that represents investments in companies subject to the obligation to publish non-financial
information (commitment to the requirements of Articles 19a and 29a of the Directive (2013/34/EU)), the proportion of taxonomy-aligned
turnover and capital expenditure is disclosed. The Group uses information obtained from an external data provider (MSCI) to assess the
degree of alignment of investments with the taxonomy. Only reported data are used (i.e. no estimated data are used).
2.
For investments in collective investment undertakings, a look-through approach is employed to calculate the taxonomy alignment with
respect to the individual investments in those funds. The look-through approach is applied to the first level of investments in the fund.
Collective investment undertakings where, despite sufficient efforts, a detailed analysis cannot be carried out are designated as "assets
financing non-taxonomy-aligned economic activities".
In 2024, the Group followed the guidelines for disclosures of KPIs for investments by insurance undertakings detailed in Annex IX/X of Commission
Delegated Regulation (EU) 2021/2178.
Restrictions on the calculation of indicators
The low percentage of alignment is due to the discrepancy between the investments captured in the numerator and denominator of the KPI. The
numerator, unlike the denominator, does not include exposures to companies that are not subject to the requirements of Articles 19a and 29a of the
Accounting Directive (2013/34/EU). The calculation is further constrained by the low data availability on the taxonomy alignment of companies
within the investment portfolio. Data coverage is expected to improve as regulatory requirements are extended to more companies, increasing the
relevance of the data on taxonomy alignment of investments. Investments for which insufficient information is available for categorisation (e.g.
collective investment undertakings where the look-through approach cannot be implemented) will be grouped into exposures to other
counterparties for the purpose of disaggregating the KPI denominator. The Company has not yet conducted an analysis of the eligibility and
alignment of investment property with the EU taxonomy. As a result, this asset class is considered fully ineligible and non-aligned and is classified
in the KPI denominator as exposures to other counterparties.
Part of the difference in the KPI compared to 2023 is due to the use of a different data source in compiling the data. The main methodological changes
compared to last year include a more precise definition of the obligation to comply with Articles 19a and 29a of the Accounting Directive
(2013/34/EU). This change accounts for a significant part of the changes in the breakdown of the KPI denominator.
10.2.2.2
Key performance indicators related to underwriting activities
The Triglav Group is committed to developing preventive solutions related to climate risks, with the aim of reducing the adverse effects of extreme
weather events. In the context of strategic ambitions for 2030, an important objective is to increase the share of the premium related to natural
166
catastrophes as defined in the EU taxonomy, allowing better coverage of climate change risks. The Group's objective is to progressively increase the
share of taxonomy-aligned product categories that are included in the climate change adaptation framework. The Group is committed to promoting
innovative approaches to climate change adaptation and raising awareness among its clients about the importance of adaptation and risk
prevention. Through targeted communication initiatives, strategic partnerships and continuous dialogue with clients – both before and after
extreme weather events – the Group aims to strengthen resilience and preparedness for climate risks. Increasing the proportion of damage repaired
is also a priority, contributing to waste reduction and sustainable restoration of damaged buildings and assets. The Group actively promotes a wide
range of insurance products for electric and hybrid vehicles and provides effective risk protection for companies engaged in renewable energy
production, such as solar power plants, wind farms and other forms of sustainable energy production.
The underwriting KPI for non-life insurance undertakings
Economic activities
Substantial contribution to climate change
adaptation
Do no significant harm
Absolute
premiums
2024
Proportion of
premiums
2024
Proportion
of premiums
2023*
Climate
change
mitigation
Water
and
marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
EUR
%
%
YES/NO
YES/NO
YES/NO
YES/NO
YES/NO
YES/NO
A.1. Non-life insurance and reinsurance underwriting taxonomy-aligned activities
(environmentally sustainable)
67,600,000
5.13%
4.27%
YES
YES
YES
YES
YES
YES
A.1.1 Of which reinsured
10,600,000
0.80%
0.68%
YES
YES
YES
YES
YES
YES
A.1.2 Of which stemming from reinsurance activity
0
0.00%
0.00%
YES
YES
YES
YES
YES
YES
A.1.2.1 Of which reinsured (retrocession)
0
0.00%
0.00%
YES
YES
YES
YES
YES
YES
A.2 Non-life insurance and reinsurance underwriting taxonomy-eligible activities that
are not environmentally sustainable (taxonomy-non-aligned activities)
26,600,000
2.02%
1.92%
B. Non-life insurance and reinsurance underwriting taxonomy-non-eligible activities
1,224,469,030
92.86%
93.81%
Total (A.1 + A.2 + B)
1,318,669,030
100.00%
100.00%
* The figures for 2023 are unaudited. The denominator of the premium shares takes into account the Group's consolidated non-life insurance and reinsurance premium.
**The KPI was calculated based on gross written premiums (GWP).
Eligibility and alignment of non-life insurance
Through the EU taxonomy assessment, certain economic activities carried out by the Company during the reporting period were reviewed and
classified as insurance services (other than life insurance), in accordance with Appendix I of Commission Delegated Regulation (EU) 2015/35. The
assessment followed Delegated Regulations (EU) 2021/2139 and (EU) 2023/2485, which establish technical criteria for determining whether
activities qualify as contributing substantially to climate change mitigation or adaptation. Commission Delegated Regulation (EU) 2021/2139 of 4
June 2021 and Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023, which amend Delegated Regulation (EU) 2021/2139, establish
additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially
to climate change mitigation or climate change adaptation, and for determining whether those activities cause no significant harm to any of the
167
other environmental objectives. The assessment focused on the activities within the Company's business model that involve non-life insurance
services associated with the insurance of climate-related hazards, as outlined in Appendix A.
71
Following the European Commission guidelines, the Group has updated the methodology for calculating taxonomy-aligned premium in 2024. While
previously all gross written premium from taxonomy-aligned products was fully taken into account, the new guidelines stipulate that only the part
of the premium related to climate risks such as heavy precipitation, storms, drought, floods and similar extreme weather events is included in the
calculation.
The premium distribution methods used comply with EU Taxonomy guidelines and are aligned with the Group's gross written premium to ensure
data comparability. The method for calculating the proportion of the premium covering climate-related events is based on a claims database,
enabling a more accurate assessment of climate risks' impact on business.
The EU taxonomy identifies non-life insurance activities that could potentially contribute to climate change adaptation and, therefore, are eligible
under the Regulation if they meet specific conditions related to the underwriting of climate-related hazards. Based on the assessment, the Company
identified taxonomy-eligible insurance subclasses. In this process, the materiality criterion was considered, and only major insurance subclasses that
would significantly contribute to alignment were included. When identifying these subclasses, the gross written premium for each was considered,
and only those with a portfolio size significant enough to impact climate change adaptation were assessed for taxonomy alignment. The Company
conducted an analysis of direct non-life insurance activities. Four taxonomy-eligible insurance activities were identified:
1.
Fire and other damage to property insurance
2.
Other motor insurance
3.
Marine, aviation and transport insurance
4.
Income protection insurance.
The taxonomy alignment calculation is based on assessing insurance premium against the technical screening criteria for significant contribution to
climate change adaptation. The assessment aims to identify activities that contribute significantly to climate change adaptation, without causing
significant harm to the climate change mitigation objective, and that meet the minimum safeguards and 'do no significant harm' (DNSH) criteria.
The assessment of premium alignment with technical criteria considers the Company's total gross written premium, linked to specific perils.
Additionally, the proportion of premium associated with particular peril classes is taken into account, Determined based on 10 years of claims
experience. Claims with a specific cause or peril are considered. The alignment assessment found that the complex technical criteria and established
processes for modelling, pricing, product design and innovative solutions allow alignment only for the Company's gross written premium.
Appropriate processes will be implemented in Group companies to enable potential alignment with technical criteria in the future.
71
See https://ec.europa.eu/sustainable-finance-taxonomy/assets/documents/CCA%20Appendix%20A.pdf.
168
A leading role in modelling and pricing for climate risks
Zavarovalnica Triglav incorporates climate change risks into its insurance business across several key areas. Historical weather event data are used
in underwriting, alongside climate change modelling to assess potential future risks. Tailored insurance products are developed to provide coverage
for climate change impacts, such as floods, fires, droughts and extreme weather events, with premiums adjusted based on climate risk exposure.
The Company promotes preventive measures, including raising client awareness of best practices to reduce risk exposure, and offers more favourable
premiums for buildings designed to be more resilient to extreme weather events. Advanced technologies, including climate change modelling and
analysis of extreme weather events, are used to assess these risks. Through these strategies, the Company ensures a comprehensive response to
climate risks, enhancing the resilience of policyholders and businesses to climate change impacts.
The Company reviews historical claims experience, adjusting values to current levels. In addition to historical data, changes in the frequency and
severity of natural catastrophes and projected future possibilities are assessed using models that simulate future events alongside internal
assessments. Various scenarios for the total sum of natural catastrophe claims are applied.
The Company publicly discloses information on coverage provided to policyholders for protection against natural catastrophes, along with general
terms and conditions and product information available on its website. This allows interested parties to easily access coverage details, compare them
against their needs and requirements, and, in some cases, such as home insurance, check prices in advance. In cases of premium increases due to
natural disaster risks, transparency is ensured through distributors, who personally inform policyholders of the reasons for the increase when
renewing policies.
The Company is committed to encouraging measures that reduce climate change risks among its policyholders. To this end, climate risks are
considered when setting premiums. Additionally, such risks may also be reflected in insurance terms and conditions, including deductibles or policy
limits. In this way, the Company not only manages risks effectively, but also promotes responsible behaviour by its clients in adapting to the effects
of climate change. Recognising the value of preventive action by policyholders, the Company integrates detailed and sophisticated modelling with
the development of new software tools. For example, the Geographic Information System (GIS) defines areas with varying degrees of exposure to
climate change-driven natural phenomena, adjusting premiums accordingly. To this end, preventive behaviour is encouraged through premium
discounts, particularly in mass-market insurance, while specialised underwriters assess clients' climate change adaptability to negotiate more
favourable insurance terms.
The Company applies tailored approaches to each type of insurance and policyholder. For property insurance against flood risks, it has introduced a
GIS-based building classification system, developed using data from the official national meteorological system and its own long-term records of
claims experience. This enables lower premiums for properties located in less flood-prone areas. A similar approach is used in agricultural production
insurance, where hazard classes are regularly updated by area, peril and agricultural crop each season.
169
Product design
The Company encourages policyholders to implement preventive measures to mitigate risks associated with climate-related hazards. These
measures include premium reductions or more favourable terms for policyholders who take protective actions, such as installing flood barriers, co-
financing flood nets, enhancing flood protection, investing in fire protection systems and purchasing firefighting equipment.
The Company provides policyholders and the general public with guidance on preventive measures through its sales network, online resources and
other media. This includes the Everything Will Be Alright portal, which features in-depth stories and articles on severe weather events such as floods,
landslides, storms, hail, earthquakes and fires, as well as podcasts on floods, earthquakes and fires. These topics are explained together with experts,
covering both the occurrence of such events and the preventive measures to be taken.
The Triglav Vreme app delivers timely push notifications on severe weather events and offers hail risk trend displays, as well as real-time monitoring
of water flow and levels.
The Company informs its clients through its distribution network, advises and raises awareness among visitors to agricultural fairs and educates
young people in agricultural schools. Preventive financial incentives are offered to policy-holding organisations, such as companies and fire brigades,
to mitigate various risks covered by their policies. These incentives include co-financing for anti-hail nets, flood protection measures, investments in
fire-fighting systems, and the purchase of fire-fighting equipment to support intervention and prevention efforts of fire brigades. Additionally,
resources are allocated to awareness-raising programmes that educate the general public on preventive measures, such as flood, hail, lightning, fire
and storm protection, as well as guidance on health prevention, braking distances and road weather conditions.
Innovative solutions for insurance cover
Each year, the Company conducts a regular annual review of its insurance products, during which development departments assess the compliance
of products with the needs of the target market and the appropriateness of their design. They also evaluate potential negative impacts on clients,
including emerging risks, and review the suitability and control of distribution strategies. If any deviations are identified, corrective measures are
implemented. Beyond the regular annual review, an extraordinary review may be conducted if circumstances arise that affect product suitability,
such as significant changes in product content, shifts in the broader economic environment impacting sales viability or findings from supervisory
inspections. This systematic approach enables proactive risk management, ensuring alignment with regulatory expectations and client needs.
Insurance products play a key role in addressing climate change, as insurers help businesses and individuals manage climate change risks and
promote sustainable practices. This includes assessing climate change risks and developing adaptation strategies. The floods and storms in Slovenia
during the summer of 2023, which caused record-high damage, underscored the importance of adequate insurance against natural catastrophes.
The Company analysed relevant climate-related perils covered by its products to ensure they are tailored to client needs and expectations regarding
climate risk coverage. As a result, a new functionality was developed within the i.triglav digital office.
170
At the i.triglav digital office, policyholders can check the risk exposure of their location, identifying the extent to which their property is at risk from
natural hazards such as floods, earthquakes, hail and lightning. This serves as the basis for determining appropriate insurance cover. As part of its
non-life insurance offerings, the Company provides business interruption insurance for weather-related risks, including windstorms, hail, floods and
earthquakes. For individually owned solar power plants (solar power plant insurance), business interruption coverage is included under home
insurance, protecting against destruction or damage caused by perils covered under the home insurance policy, such as storms, hail, floods,
stormwater, landslides and frost. This type of coverage is also available for owners of solar power plants operated for profit.
As part of its activities, in April 2023, Zavarovalnica Triglav launched an automated campaign encouraging home insurance clients without flood
cover to add it during the policy renewal month. This initiative aims to enhance client protection against the effects of extreme weather events and
promote preventive action. Additionally, during the summer, the Company launched a campaign targeting clients who do not have home insurance
with Zavarovalnica Triglav but hold other insurance policies. Through a series of emails, the campaign highlighted the risks of summer weather
events such as storms, hail and floods. Through such targeted campaigns, the Company raises awareness of the importance of adequate protection
and encourages timely action to mitigate climate change risks.
Data communication
The Company reports the number of natural catastrophe claims to the Slovenian Insurance Association annually and provides data to supervisory
authorities upon request.
Comprehensive post-catastrophe services
Clients can report claims through multiple channels, with digital reporting becoming the predominant method. The Company maintains an extensive
network of insurance agents who assist policyholders in the claims process. By publishing the necessary claim reporting forms and information on
the claims settlement process, it ensures that policyholders have access to all relevant information at all times. Additionally, the claims reporting
and settlement process is further streamlined through registration with the i.triglav digital office, which offers various functionalities to facilitate
faster and more efficient claims handling.
171
'Do no significant harm' criterion
Reporting on the 'do no significant harm' (DNSH) criterion within the EU taxonomy includes an assessment of whether insurance premium related
to climate change coverage negatively impact other environmental objectives, even when they contribute to one of them, such as climate change
mitigation or adaptation. For an economic activity to be taxonomy-aligned, it must not harm the environmental objective of climate change
mitigation. The Company verifies compliance with legal requirements using an internal classification of economic activities based on the statistical
classification of economic activities in the European Community (the NACE classification). A thorough review of the portfolio is conducted, applying
a conservative approach. For retail clients (insurance for natural persons), DNSH compliance is not a key requirement, as personal use (e.g. home
heating or personal vehicles) is not considered harmful.
The DNSH criteria are presented in tables within the document, where they are indicated as
"Y" (yes) or "N" (no) for various environmental objectives.
The Company further verified alignment of premium to ensure compliance with the 'do no significant harm' (DNSH) and minimum safeguards
requirements. The assessments in this report are based on Delegated Regulation (EU) 2021/2139, which establishes DNSH criteria for non-life
insurance activities related to the EU taxonomy for climate change mitigation. The Company verified that the taxonomy-aligned premium does not
include insurance for the extraction, storage, transport or production of fossil fuels, and insurance of vehicles, property or other assets. The Company
acknowledges that identifying whether a particular vehicle is used to transport fossil fuels is currently challenging, and this is disclosed as a data
constraint. The importance of accuracy in reporting is recognised, and efforts are being made to improve the calculation methodology to enable
better identification of vehicles used to transport fossil fuels in the coming year.
Minimum safeguards
For final premium alignment, compliance with minimum safeguards is essential. These safeguards require that economic activities comply with the
UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.
Compliance with minimum safeguards is ensured at various levels and across different areas through the implementation of guidelines and
processes.
As part of investment portfolio management, investment choices are carefully monitored to ensure adherence to the highest standards of
responsible investment. Exposure to controversial weapons is very low (total exposure amounts to EUR 1,314) and immaterial, remaining only as
part of a historic portfolio that is no longer actively managed. Investment strategies are continuously adapted towards sustainable guidelines, using
available measures to gradually reduce such exposure. Accordingly, new and existing products do not include any investments related to
controversial weapons.
172
Limitations on the calculation of indicator
The Triglav Group disclosed the taxonomy-aligned premium only for Zavarovalnica Triglav, as the insurance and reinsurance activities of its
subsidiaries do not yet meet the technical screening criteria under the EU Taxonomy. Given the evolving regulatory environment, these limitations
are recognised, and efforts are underway to enhance the compliance analysis for subsidiaries to ensure more accurate disclosures in future reports.
Currently, the link between individual insurance items and reinsurance premium is not fully established. A project aimed at improving data quality
and gaining deeper insight into the relationship between direct and reinsurance business is in progress and expected to be completed in 2025. While
this project will enhance reporting accuracy, the current assessment model is deemed appropriate based on available data and industry practices.
For large policyholders, where premium was individually determined and uncertainty existed regarding full compliance with all technical criteria,
the entire premium was classified as eligible but not aligned.
The Triglav Group is an insurance and financial group engaged in insurance and asset management. Therefore, it also presents the average key
performance indicators (KPIs) of both the investment and insurance segments, weighted by their respective revenue shares. The final overall key
performance indicator consolidates both segments and is prepared in accordance with the requirements of Annex XI of the DDA.
Weighted average of key performance indicators for investment and insurance activities
KPI per business segment
Revenue
Proportion of total
group revenue (A)
KPI turnover based
(B)
KPI CapEx
based (C)
KPI turnover based
weighted (A*B)
KPI CapEx based
weighted (A*C)
Asset management
51,454,450
3.69%
1.51%
2.47%
0.06%
0.09%
Insurance undertakings
1,341,754,919
96.31%
5.13%
5.13%
4.94%
4.94%
- non-life
1,186,349,643
85.15%
5.13%
5.13%
-health
55,139,550
3.96%
0.00%
- life
100,265,726
7.20%
0.00%
Total
1,393,209,369
100.00%
Average KPI
5.00%
5.03%
173
10.3
Social aspects
10.3.1
Employee care (S1)
The Group focuses on ensuring the long-term well-being of its employees in the organisation.
This includes considering employees' health and safety, improving the opportunities for their
personal development and growth, while promoting a positive work environment. A care for
health and well-being are identified as a key area, which is why it was included in the Company's
strategic initiatives.
Strategic employee management guidelines and the recruitment policy (S1-1)
72
▪
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 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.
▪
Induction mentoring is provided for new recruits, while development mentoring is provided
for high-potential employees.
▪
Development of key competences to achieve individual goals is encouraged. In 2024,
particular focus was placed on the
initiative
competence.
▪
Commitment to the further development of key and high-potential employees and leaders
is maintained.
▪
An annual ORVI survey is conducted to ensure employee satisfaction and engagement.
▪
Hybrid forms of work are maintained to enable more flexibility, facilitate cooperation and
improve work-life balance.
Policies are in place to address key employee-related issues, including health and safety at work,
equality, inclusion, professional development and work-life balance. These policies are based on
respect for human rights, employee dignity, and compliance with local and international
legislation. They are designed to apply to all employees in the Group, with adaptations made for
specific groups where necessary (e.g. part-time employees, temporary employees, employees in
different regions). The following disclosures relate to fixed-term and permanent employees, as
well as external contractors providing services under civil law contracts such as work and
copyright work contracts.
73
Engagement with employees and their representatives (S1-2)
74
The Triglav Group strengthens direct engagement with employees and their representatives.
Employees' views, gathered through various ways, are considered in decision-making and the
management of employee-related impacts. Engagement occurs through regular surveys,
feedback, internal communication channels and representatives.
75
The Company has two
representative trade unions and a Works Council, which play a key role in shaping work
organisation and employees' rights and obligations by providing opinions on changes to work-
related rights and duties.. The employees exercise their management rights in line with the
72
S1.MDR-P_05, S1-1_01.
73
S1.SBM-3_01–02.
74
ESRS S1-2_01,
S1-2_02, S1-4_10.
75
S1-1_05.
174
Worker Participation in Management Act and based on the agreement on worker participation
in the management of Zavarovalnica Triglav. The organisational vitality survey (ORVI) is used as
a tool to assess employee satisfaction and identify potential risks. The survey is conducted
annually. Each company is required, according to the Minimum Standards, to review the survey
reports and take appropriate action to improve the categories with lower scores
Taking action on material impacts on employees (S1-4)
76
Triglav.smo
serves as a key programme for managing risks, addressing impacts and enhancing
employee satisfaction at Zavarovalnica Triglav. It provides employees with a broad array of
events and activities, focusing on health, professional development and overall well-being.
Certain activities are also implemented by other Group companies. The programme
encompasses the following areas:
▪
Mental health care:
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 68 interviews with 52 employees in 2024.
Psychosocial support is also provided independently by an external provider.
▪
Facilitating work-life balance f
or Company employees: As a holder of the full Family-Friendly
Enterprise Certificate, a constructive organisational culture is fostered through a wide range
of 21 benefits and good practices. Best practices from the certificate are progressively
implemented in other Group subsidiaries.
▪
Support for children:
Organised holiday camps for employees' children and end-of-year gifts
for the youngest children.
▪
Greeting the Seasons events:
All Group employees are included in these events.
▪
Corporate volunteering
under the
Together for a Safer Future
initiative: 237 employees
participated in organised volunteering actions. Volunteer teambuilding events were also
organised by other Group companies.
▪
Employees well-being outside working hours:
Employees have opportunities to join sports
and mountaineering clubs.
10.3.1.1
Employee composition
The Triglav Group had
5,204 employees
as at 31 December 2024, down by 114 over the
preceding year. The number of employees decreased due to the departure of employees
following the merger of Triglav, Zdravstvena zavarovalnica into Zavarovalnica Triglav and the
liquidation of two companies: Triglav Savetovanje in Serbia and Triglav Savjetovanje in Croatia.
The number of Triglav Group employees as at 31 December 2024
76
S1-4_11, S1.MDR-A_01–05.
5,204
5,318
5,306
2024
2023
2022
175
A total of 50.4% of all Group employees are employed in Slovenia, down by 1 percentage point
year-on-year. The share of employees in Croatia increased the most (by 0.6 percentage point).
The majority, i.e. 87.6%, of all employees worked in the insurance activity.
Employees by Triglav Group market by gender as at 31 December 2024
77
Employees by country as of 31 Dec 2024
Women
Share
Men
Share
Total
Share
Slovenia
1,405
27.0%
1,216
23.4%
2,621
50.4%
Serbia
526
10.1%
292
5.6%
818
15.7%
Bosnia and Herzegovina
278
5.3%
259
5.0%
537
10.3%
Croatia
331
6.4%
236
4.5%
567
10.9%
Montenegro
191
3.7%
187
3.6%
378
7.3%
North Macedonia
170
3.3%
113
2.2%
283
5.4%
Triglav Group
2,901
55.7%
2,303
44.3%
5,204
100.0%
Employees by Triglav Group activity as at 31 December 2024
The proportion of employees with at least level VI education according to the Bologna Process
study programmes has been steadily increasing, up by 1.1 percentage points in 2024.
Proportion of employees at the Triglav Group with at least level VI education according to the
Bologna Process study programmes as at 31 December 2024
77
S1-6_01, 02, 04, 05, SBM-1_03.
Insurance
4,561 (87.6%)
Asset
management
143 (2.7%)
Other
500 (9.6%)
60.1%
59.0%
58.5%
2024
2023
2022
176
Employees at the Triglav Group and Zavarovalnica Triglav by type of employment (part-time, full-
time) as at 31 December 2024
78
Triglav Group
Zavarovalnica Triglav
2024
2023*
2024
2023*
Women
Men
Women
Men
Women
Men
Women
Men
Type of employment by working
hours
Part-time
466
305
491
305
50
20
50
23
Full-time
2,435
1,998
2,435
2,087
1,114
1,039
1,102
1,068
Total
2,901
2,303
2,926
2,392
1,164
1,059
1,152
1,091
Type of employment agreement
Fixed-term
389
234
328
249
17
15
9
8
Permanent
2,512
2,069
2,598
2,143
1,147
1,044
1,143
1,083
Total
2,901
2,303
2,926
2,392
1,164
1,059
1,152
1,091
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
The turnover rate
79
at Group level rose to 16.5% (2023: 12.0%) and to 10.2% at Zavarovalnica
Triglav (2022: 5.5%). A total of 749 new employees were hired in 2024; most new hires were
aged between 26 and 35 years. A total of 863 employees left; most leavers were aged over 56
years (due to retirement) and 41–45 years.
The most common reasons for leaving are retirement, failure to meet expectations in annual
and quarterly interviews, and a desire to pursue career development in other work
environments. However, turnover is largely driven by retirements due to an ageing workforce.
The Company does not employ any employees without a guaranteed minimum or fixed number
of working hours.
80
In 2024, 322 individuals worked for the Group under other contracts
(copyright work contracts, contract for services, post-retirement contracts, student work), of
whom 101 worked for the Company, in accordance with the legislation.
81
Employee data refer to the total number of employees (head count) on the last day of the
reporting year in and apply to the
Group level. These data include all employees of the Company
and its subsidiaries. Indicators per employee are calculated using the average number of
employees during the year, determined as the average of the number of employees on the last
day of the reporting year and the last day of the previous year. Metrics based on full-time
equivalents are disclosed separately.
82
10.3.1.2
Employee training and development
Education and training are carefully planned and directed in consultation with leaders, who
identify and address the needs of their colleagues. This area is governed by internal policies and
programmes, including the Policy on the Management of Key High-Potential and Young High-
Potential Employees, the Employee Development and Care Policy, and the Scholarship Policy.
83
In-house training is available to employees of all ages and target groups, with special attention
paid to leaders, sales staff, high-potential employees, in-house coaches and mentors. Employees
from all Group companies and employees at external points of sale are included in in-house
training.
78
S1-6_07, 08, 09, S1-6_18–20.
79
S1-6_11–12
80
S1-6_07.
81
S1-7_01–03.
82
S1-6_13–15.
83
S1.MDR-P_05.
177
Access to skills development is promoted in several ways: each employee has an annual
interview with their supervisor to set objectives, assess key competences and identify necessary
training for the upcoming year. Additionally, employees are invited to various mandatory and/or
recommended training courses, professional meetings and similar events throughout the year.
They also attend external training courses within the limits of available funding. Throughout the
year, they have access to the LMS eCampus and EDU720 platforms EDU720, providing a variety
of educational materials.
84
The total number of functional training hours
at the Company was slightly lower than in 2023
(index 91). Employees at Group level participated in an average of 31 hours (index 98), while
Company employees participated in 46 hours on average. In terms of gender, men received
slightly more training, with an average of 33 teaching hours in the Group and 47 hours in the
Company.
85
Average number of hours of functional training per employee in 2024
Triglav Group
Zavarovalnica Triglav
Women
30
44
Men
33
47
Total
31
46
The Group training costs
amounted to EUR 2.6 million, up by 4%.
86
Employees are encouraged to
continue their formal education.
Work study
was funded for 161 Group employees and
scholarships
were provided to 56 pupils and students.
Obligatory work placement
was provided
to 80 pupils and students. A total of 9 young employees completed
traineeship
under the
guidance of mentors. During the four-day
Great Challenge
(
Hud izziv
), held in cooperation with
the Career Centre of the Faculty of Economics, students utilised artificial intelligence tools to
transform some of our typical insurance roles into jobs of the future.
Training in insurance, sales, business communication, digitalisation and other relevant business
topics was provided to employees. Zavarovalnica Triglav was awarded the
TOP investor in
education
certificate for its systematic investment in employee education and training.
Some of the more extensive training programmes in 2024 include
87
:
▪
The Customer Experience workshop
for the Group's high-potential employees in cooperation
with IEDC Bled.
▪
Triglav International Business Academy (TIBA)
for 29 young high-potential employees from
eight Group companies.
▪
Leadership
Licence
to
strengthen
leadership
competences,
the
Leadership
School
programme
for new leaders.
▪
Conference for leaders
attended by 307 leaders from Group companies.
▪
Hansen Beck's
Employee Management and Communication
programme for B-1 level
managers of subsidiaries in Slovenia, and the
Meeting Business Challenges
workshop for the
management boards of these companies.
▪
Training of in-house coaches
for the Group's new sixth group of employees, alongside
regular supervision meetings for existing coaches.
▪
A total of 15
expert meetings
at the Company and 24 at Group level in various areas of
expertise.
84
S1.MDR-A_01–05, S1-1_22, S1-13_01–02.
85
S1-13_03-04.
86
S1.MDR-A_06.
87
S1-4_11.
178
▪
The Triglav Ambassadors programme
to exchange knowledge, skills and experience among
the best insurance agents; continuation of
the Sales Academy
for sales staff across all sales
channels of the Company's own sales network and their managers, as well as
administrators of business partners at contracted points of sale.
▪
The Triglav Guide
presented to seven groups of new hires.
▪
Refresher training to maintain
a licence to conduct insurance agency business
The management-by-objectives and competency development system
is implemented by all
Group insurance companies and some non-insurance The share of employees included in this
system at Group level in 2024 was 60.4% (2023: 63.2%), while all employees in the parent
company are included. Employees set their objectives during an annual development interview
with their superior, and companies monitor compliance with the minimum standards at least
once a year. 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.
88
The development part of the annual interview is based on a competency model to define
individual competency profiles and development activities. All Group companies use the DNLA
tool for selecting and developing new employees.
10.3.1.3
Occupational health and safety
89
Occupational health and safety is managed
through
the Safety Statement and Risk Assessment
.
This document identifies all hazards and risks that employees may encounter in the course of
their work and in the work environment. The statement includes measures to prevent and
minimise these risks.
90
Workplace risk assessments are regularly reviewed, with actions updated
and employees and occupational medicine specialists directly involved.
Based on the risk assessment, employees are referred to periodic medical examinations, and
every new hire is required to undergo a statutory medical examination before commencing
employment. Participation in training and passing a test on fire safety and occupational health
and safety are mandatory for employees. Safe working conditions at the parent company are
defined in the collective agreement and the applicable legislation, while the subsidiaries adhere
to the applicable local legislation.
The Company ensures occupational health and safety through a comprehensive and strategic
approach. To control and minimise risks, several activities are implemented, including strict
compliance with sectoral legislation (identification and control of hazards and harmful
substances), health promotion at workplaces (the Triglav.smo – Protecting Health (
Zavarujmo
zdravje
) programme), provision of personal protective equipment, appropriate working
conditions, ergonomic design of workplaces, and awareness-raising and training for employees.
Many of these activities are part of the Family-Friendly Enterprise certificate, further
contributing to employee satisfaction and better health.
91
In addition, the goal is to identify, mitigate and manage risks arising from duties and the work
environment. Employees can report any perceived deficiencies in the health and safety
management system to the relevant departments for remediation.
The occupational health and safety system
involves all employees. The comprehensive approach
from the parent company is being transferred to other Group companies by implementing
88
S1-13_02.
89
S1-4_20.
90
S1-1_09.
91
S1.MDR-A_01–04, S1-4_11.
179
common minimum standards to ensure health and safety at work and by strictly adhering to
local legislation.
92
Health promotion
is planned and implemented in a targeted and deliberate manner, based on
the most common health issues observed among employees, as well as anonymous
occupational medicine reports.
Accidents at work
The number of accidents in the Group remains low, decreasing even further in 2024. A total of
10 accidents were recorded in the Group, with one occurring in the parent company. The number
of lost work days also fell significantly due to fewer accidents and reduced absenteeism.
The
Group companies have not yet reported on any work-related ill health, nor have any work days
been lost as a result.
93
Injuries at work at the Triglav Group and Zavarovalnica Triglav
94
2024
2023
*
2022
Index
Triglav Group
Number
Percentage
Number
Percentage
Number
Percentage
2024/2023
2023/2022
At work
7
70.0
15
75.0
14
70.0
47
107
On business trips
3
30.0
5
25.0
6
30.0
60
83
Total
10
100.0
20
100.0
20
100.0
50
100
Zavarovalnica Triglav
Number
Percentage
Number
Percentage
Number
Percentage
2024/2023
2023/2022
At work
0
0.0
2
33.3
1
25.0
0
200
On business trips
1
100.0
4
66.7
3
75.0
25
133
Total
1
100.0
6
100.0
4
100.0
17
150
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
Lost work days and lost time incident rate due to injuries at work at the Triglav Group and
Zavarovalnica Triglav
95
Index
2024
2023**
2024/2023
2023/2022
Triglav Group
Lost work days due to work-related injuries
289
869
33
68
Lost time incident rate – LTIR*
0.96
1.88
51
100
Zavarovalnica Triglav
Lost work days due to work-related injuries
5
238
2
41
Lost time incident rate – LTIR*
0.22
1.32
16
149
* The number of work-related incidents/total number of hours of all employees x 1.000,000
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged
into Zavarovalnica Triglav in 2024.
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 Group's absenteeism rate was at the same
level as the previous year at 4.38%. The share of absenteeism for which sickness benefits are
borne by the employer increased by 0.08 percentage points (medical leave up to 30 days), while
the share of lost work days for which benefits are borne by other organisations decreased by
0.09 percentage points (medical leave longer than 30 days, sick nursing, accompanying a sick
person). The absenteeism rate at the Company was also lower and stood at 4.95% (compared to
92
S1-14_01.
93
S1-14_06–07.
94
S1-1_14.
95
S1-14_04-05.
180
5.02% the year before). As a result, the share of work days lost borne by the employer rose by
0.12 percentage points, whereas the share of work days lost borne by the Health Insurance
Institute of Slovenia decreased by 0.18 percentage points.
10.3.1.4
Equal treatment and opportunities for all
Respect for workers' rights and human rights are fundamental ethical principles defined in the
Triglav Group Code. The Group consistently respects and protects the internationally recognised
human rights and fundamental freedoms, which comply with the UN's goals and principles and
originate from the Universal Declaration of Human Rights, and the fundamental rights as
defined in the International Labour Organization's Declaration on Fundamental Principles and
Rights at Work.
96
The key policies that help manage equal opportunities include:
the Triglav Group Code
, which
expressly prohibits discrimination based on race and ethnic origin, colour, gender, sexual
orientation, gender identity, disability, age, religion, political opinion, or national or social origin;
the Rules on the Protection of Workers' Dignity at Work
, which provide detailed guidelines on
identifying, preventing and remedying discrimination, harassment and mobbing in the
workplace;
the Rules on the Handling of Internal Fraud and Violations of the Triglav Group Code
;
and, at the Company,
the Diversity Policy
.
In addition to the Triglav Group Code, the Group
companies operating outside Slovenia also comply with local legislation and the Company's
minimum standards. Internal resolution mechanisms are used, and violations of the Code are
reported directly to the Company's Compliance Office.
97
Any reported or detected suspected
violation
is dealt with
according to a predetermined
procedure
, in which professionalism, confidentiality and protection of the whistleblower are
guaranteed. A designated confidant is available for employees to contact regarding allegations
of human rights violations, harassment, discrimination or mobbing in their work or business
environment. Employees can also report violations through other channels, including their
supervisor, HR or a dedicated app for reporting suspected violations of the Code:
https://prevare.triglav.eu/whistleblower/#/zt
.
In
these
cases,
reporting
can
be
made
anonymously.
98
The whistleblower is protected from any retaliatory action and is given an opportunity to
informally resolve the issue. At the Company, the Committee for the Determination of
Unwanted Conduct identifies violations, and the procedure is managed by a panel appointed by
the Committee. The results are reported to the Compliance Office and the Risk Management
Department. The Compliance Office also serves as the central function for maintaining records
of human rights violations at Group level.
99
In 2024, 11 employee reports of inadmissible conduct were received at Group level, six of which
in the Company.
100
96
S1-1_03, S1-1_05
97
S1-1_04, S1-1_06, S1-1_10, S1-1_11.
98
S1-3_02, S1-3_05.
99
S1-3_07.
100
S1-17_01–03, S1-17_05–06, S1-17_13.
181
Employee diversity
101
The Diversity Policy considers diversity in experience, skills, gender and other factors that
contribute to better performance and decision-making within the management and supervisory
bodies. It is also being implemented in other areas to proactively promote gender equality.
The proportion of women
among all employees increased both at the Company and in the
Group, where it reached 55.7%. The proportion of women on the Management Board of
Zavarovalnica Triglav was 20.0%, on the Supervisory Board it was 37.5%, and in the management
and supervisory bodies of all Group companies, it stood at 26.4%.
The average age
of employees in the Group remained stable at 45.1 years;
at the parent
company it was slightly lower a 46.6 years (2023: 46.9 years). The average age of Zavarovalnica
Triglav's Management Board members was 48.8 years. In Slovenia, senior management is hired
from the local community, as is the majority of senior management in markets outside Slovenia.
Gender representation by various categories at the Triglav Group and Zavarovalnica Triglav as at
31 December (%)
102
Number
Index
Share (%)
Triglav Group
2024
2023*
2024/2023
2024
2023*
Number and share of women among employees
2,901
2,926
99
55.7
55.0
Number and share of women at the 1st managerial level below the
Management Board
74
75
99
45.7
44.6
Number and share of women in management and supervisory
bodies in the Triglav Group
34
40
85
26.4
26.7
Zavarovalnica Triglav
Number and share of women among employees
1,164
1,152
101
52.4
51.4
Number and share of women on the Management Board of
Zavarovalnica Triglav
1
1
100
20.0
20.0
Number and share of women on the Supervisory Board of
Zavarovalnica Triglav
3
2
150
37.5
25.0
Number and share of women at the 1st managerial level below the
Management Board
9
8
113
30.0
27.6
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged
into Zavarovalnica Triglav in 2024.
Employees at the Triglav Group by age and gender as at 31 December 2024
103
2024
2023*
Number
Share ( %)
Number
Share ( %)
Age groups
18 - 30
485
9.3
496
9.3
31 - 50
2,938
56.5
3,074
57.8
51 and over
1,781
34.2
1,748
32.9
Total
5,204
100.0
5,318
100.0
Gender
Men
2,901
55.7
2,926
55.0
Women
2,303
44.3
2,392
45.0
Total
5,204
100.0
5,318
100.0
* The figures for 2023 are unaudited.
101
ESRS 2 GOV-1_05–06.
102
S1-9_01–02, 06,
SASB: FN-AC-330a.1.
103
S1-9_03–05.
182
The proportion of employees with disabilities
was 2.3% in the Company and 1.5% at Group level.
The number and proportion of employees with disabilities*
104
Triglav Group
Zavarovalnica Triglav
2024
2023
2024
2023
Number
79
71
52
60
Share
1.5%
1.3%
2.3%
2.7%
* The number of employees recognised by the state authorities as having a disability. The figures for 2023 are unaudited.
The number and proportion of employees at the Triglav Group
with disabilities by gender*
2024
2023
Number
Share (%)
Number
Share (%)
Gender
Men
47
59.5
40
56.3
Women
32
40.5
31
43.7
Total
79
100.0
71
100.0
* The number of employees recognised by the state authorities as having a disability. The figures for 2023 are unaudited.
Employee satisfaction
The 2024
organisational vitality survey (ORVI)
showed high levels of
employee
satisfaction
and
engagement
. The ORVI index improved for both the Group and the Company, reaching
3.97
and
3.96
, respectively. A total of 85% of employees from 15 Group companies participated (compared
to 89% the previous year). Once again, employees rated their satisfaction highest in
operational
leadership
, with the survey also indicating
high engagement
levels.
They feel that supervisors
are transparent, responsive to team needs and provide constructive feedback. Confidence in
their objective assessments of colleagues' work has further increased.
Most leaders willingly
share knowledge and information, trust each other and prioritise collaboration over
competition. They exchange even unconventional ideas with their teams and are not afraid to
make mistakes. Employees are satisfied with job stability, working hours and training
opportunities.
The challenge moving forward will be to maintain company loyalty and keep employees highly
engaged. The Company will continue to implement programmes to strengthen these aspects
and foster the desired organisational culture.
Benefits and opportunities for employees
105
In all employee categories, activities and countries where the Group operates, the basic salary of
men and women is equal. Benefits are the same for all employees, be it permanent full-time
employees, fixed-term employees or part-time employees. All Triglav Group employees receive
a fair salary, aligned with the applicable benchmarks in the countries where the Group operates.
Salaries are ensured to comply with local legal requirements, collective agreements and relevant
benchmarks for a decent standard of living.
The gender pay gap is defined as the ratio of average salaries between female and male
employees, expressed as a percentage of the average salary of male employees. The calculation
includes monthly salaries and other remuneration to employees, but excludes bonuses and
reimbursements (such as meal allowances, commuting allowances and daily allowances). The
difference between the average salary of male and female employees in 2024 was 27.7% at
Group level and 26.0% at the Company. At the Company, this difference is strongly influenced
104
S1-12_01–03.
105
S1-10_01.
183
by the variable remuneration structure in sales, where agent roles are predominantly held by
men. In addition, a large number of the claims and underwriting staff come from technical
backgrounds, and the digitalisation process also relies heavily on IT specialists. These roles,
which are more frequently held by men, are also in short supply in the labour market. This results
in a significant overall pay gap between male and female employees, while the gap for
comparable jobs by job complexity is considerably smaller. The table below presents the gender
pay gap by job complexity based on Zavarovalnica Triglav's job classification system, which
considers four factors: knowledge and skills, effort, responsibility, and working conditions.
Ratio of average salaries between male and female employees by job complexity at Zavarovalnica
Triglav*
Employee group by job
Gender pay gap
Senior management and employees in the most demanding jobs
1.90%
Employees in jobs requiring second-cycle education or equivalent
4.56%
Employees in jobs requiring first-cycle education or equivalent
3.53%
Employees in jobs requiring secondary technical, vocational or general education
–3.62%
Insurance agents earning remuneration based on the premium they generate
16.62%
All employees
26.04%
*The figures are unaudited
The Group has a gender-neutral remuneration policy and is committed to ensuring equal pay for
equal work, recognising that gender pay inequality and achieving full pay equity is a broader
societal challenge. Efforts are focused on improving data and analysis to better understand the
pay gap and its underlying causes. Moving forward, efforts will continue to ensure that all
employees – regardless of gender – have equal opportunities for career development and
advancement and are placed in roles with appropriate remuneration.
The annual total remuneration ratio of the highest paid individual to the median annual total
remuneration for all employees (excluding the highest-paid individual) was 14,84. It covers the
remuneration of all employees, including basic salary, cash allowances, benefits in kind, long-
term incentives and other bonuses (e.g. voluntary pension insurance, supplemental pension
insurance).
Amounts in foreign currencies are converted into euros.
106
Additional benefits provided to employees include:
▪
Supplemental pension insurance for 59% of employees of the Triglav Group and for 97% of
employees of the parent company;
▪
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 71% of all employees of the Group and 84% of the parent company are
included.
The Group companies operating outside Slovenia provide additional 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.
106
S1-16_01–03.
184
Work-life balance
Circumstance and work requirements permitting, working hours can be adapted to the needs
and wishes of employees.
At Zavarovalnica Triglav and some Group companies, employees
whose nature of work allows it may work from home, with their proportion increasing. At the
end of 2024, 36% of Group employees and 67% of Company employees had this option available
to them. All Group employees are entitled to family-related leave in accordance with applicable
law, the relevant collective agreement and internal company regulations. 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.
107
10.3.2
Clients (S4)
The Company aims to cultivate long-term relationships with its clients, built on principles of
fairness, trust and ongoing follow-up of client needs, to which it responds quickly and with
quality, simplicity 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 and financial
advisors, ensuring clients are informed about insurance and financial products and their
personal data and rights are protected. Products are developed in line with the procedures for
their approval and testing before they are 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 and/or its distribution is
appropriately adjusted. The sale of insurance and financial products 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.
108
10.3.2.1
Transparent and easy-to-understand products
Clients have easy access to all necessary information about the Company's products and services.
Efforts are consistently made to ensure that insurance and other general terms and conditions
are fair and transparent. Marketing strategies and campaigns are consistently implemented in
compliance with statutory and other consumer protection regulations.
The Policy on Insurance Product Governance, Oversight and Distribution at Zavarovalnica Triglav
establishes the rules and practices for product development, distribution, oversight and lifecycle
management. This policy is designed to safeguard consumers and to identify and track the needs
of the target market. Clients' needs and requirements serve as the primary guiding principle
throughout the product development, testing, distribution and monitoring phases. This ensures
fairer insurance protection, supports proper conflict-of-interest management, and ensures that
clients' objectives, interests and characteristics are appropriately considered. The Group does not
provide services that violate human rights. Particular attention is given to the equal treatment
of policyholders, and any exclusions of the insurer's obligations in the general terms and
conditions are based on actuarial calculations. For its insurance companies operating outside the
EU, the Group ensures that their rules comply with local legislation.
109
107
S1-15_04.
108
S4.SBM-3_05, S4-2_01–03
109
S4-1_02, S4-1_03, S4-1_04, GRI 417-1, SASB: FN-IN-270a.4, FN-AC-270a.3.
185
No proceedings for violations related to marketing communication were initiated against
Zavarovalnica Triglav and its subsidiaries in 2024.
110
Complaints handling mechanisms
111
Clients have the right to express dissatisfaction with the Zavarovalnica Triglav
conduct or
decisions related to the insurance contract, personal data processing, the Company's approach
or any other matter under the Rules on the Complaint Procedure at Zavarovalnica Triglav d.d.,
publicly available on the Company's website. Statistical processing and analysis of complaints
are used to identify potential legal or operational risks of unfair business practices or other non-
compliance, with appropriate remedial actions taken as necessary. Complaints may be
submitted in writing or orally. Consumers also have the option to seek resolution through an
out-of-court dispute mechanism, either by filing a complaint with the Mediation Centre of the
Slovenian Insurance Association or by pursuing legal action. Additionally, clients may lodge
complaints concerning compliance with the Insurance Code, good business practices or basic
insurance profession standards with the Ombudsman of Good Business Practices in Insurance
(Insurance Ombudsman) at the Slovenian Insurance Association.
Due to differences in legislation and regulatory requirements across various countries, internal
acts governing complaints handling are tailored to the specific circumstances of each Group
insurance company. At Triglav Group level, a common complaints handling framework, based
on the Code, is in place. This framework ensures that complaints are addressed in a manner that
respects the rights and obligations of the parties involved and safeguards the legitimate
interests of the Group companies.
When handling consumer complaints, we treat data confidentially and process it exclusively for
the purposes of the complaint procedure, in accordance with the Rules and the Personal Data
Protection Act. However, we do not process anonymous consumer complaints. Anonymous
complaints are forwarded to the relevant professional department.
112
The Company is a signatory to the Commitment to Respect Human Rights in Business and
adheres to the UN Guiding Principles on Business and Human Rights. A designated Human
Rights Officer is responsible for integrating respect for human rights into the Company's
principles, conducting due diligence to identify key risk factors for human rights violations,
raising awareness of human rights among employees and other stakeholders, and establishing
an internal complaints handling mechanism.
113
In 2024, the Company received 3,784 complaints, down by 3% compared to the previous year.
Most complaints were related to non-life insurance claims (88%). The majority (85%) were
substantive complaints, where clients expressed dissatisfaction with the handling of their
claims. Three-quarters were unfounded, one-tenth were founded and one-seventh were
partially founded.
Apart from that, 44 compliments were received. 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.
No significant human rights violations
were reported or identified in relation to consumers within the Company or the Group.
114
Client feedback is gathered through various channels, including surveys following claims
reporting, complaint handling processes, responses on social networks and own websites, as
110
GRI 417-2, 417-3, SASB: FN-IN-270a.1, FN-AC-270a.2.
111
S4-3_02, S4-3_04, S4-3_05 S4-3_06, S4-3_09.
112
S4-3_11, S4-3_12.
113
S4-1_06–07.
114
S4-4_11, S4-3_13.
186
well as direct input from agents in the field. A book of complaints and compliments is available
at points of sale and is monitored on an ongoing basis. Resolutions are tracked using an efficient
application. A report on the handling of complaints and compliments is prepared annually and
presented to the Company's management. This report includes suggestions for possible
improvements to the complaints handling procedure and related processes. The Company
ensures that clients receive clear and transparent information about the complaints procedure.
This is achieved through appropriate explanations in insurance documentation and information
on the Company's website, where clients can find all relevant details on the complaints handling
process. Records of complaints are maintained in the required format, primarily in electronic
form.
115
Client satisfaction
116
Delivering an outstanding client experience remains a top priority. Client satisfaction is
monitored using the Net Promoter Score (NPS) methodology, with an expanding number of
companies conducting regular measurements.
In 2024, a high level of client satisfaction was maintained despite challenges such as market
changes and price adjustments. The Group's NPS score was 70, while the Company's score stood
at 66, just three points lower than the previous year. Client satisfaction with healthcare service
providers is measured at the Zdravstvena točka health information office, with scores
consistently exceeding target values.
Client experiences are actively tracked and analysed throughout the year. Negative feedback is
reviewed daily, with competent departments engaging with clients to address concerns and
improve satisfaction. Feedback from users of the Zdravstvena točka health information office
services is regularly shared with partner healthcare providers. Excellence awards are granted to
the highest-scoring healthcare providers, with special recognition for those achieving top results
for five consecutive years.
In 2024, the client retention rate for the Group and the Company was 78.4% and 83.6%,
respectively. Together with new clients acquired this year, their total number increased by 6% in
the Group and 6.3% in the Company. The rate of complaints in relation to the number of claims
was 0.9% at the Company (2023: 1.1%) and 1.2% at Group level.
117
Since 2011, Triglav's brand image has been measured among the general population to assess
the strength, awareness and perception of the Triglav brand and compare it with key
competitors in each regional market. This has a significant influence on consumer purchasing
intentions. The BSI index, which combines spontaneous brand recall with both aided and
unaided brand recall, serves as a periodic strategic indicator of brand performance. See Section
Brand development
in
4.4 Development activities
for more information.
Additionally, a client satisfaction report is prepared twice a year (for the January–June period
and the January–December period). This report tracks policyholder complaints and compliments,
and helps drive actions for improvement.
The Group has not yet defined a detailed methodology, including a baseline value and a baseline
year, for the described client-related objectives to measure progress and assess their alignment
with national, international and EU policies. Relevant stakeholders, including clients and their
representatives, are involved in the target-setting process, as outlined in the context of the
115
S4-4_01, S4-4_02, S4-4_04, S4-1_05.
116
S4.MDR-T_01–04.
117
FN-IN-270a.3.
187
double materiality assessment process and in the stakeholder engagement table. No changes to
the objectives or measurement methodologies have been introduced to date. In the coming
reporting periods, the focus will be on further improving transparency and gradually introducing
methodological approaches to allow for greater alignment with ESRS requirements.
10.3.2.2
Accessibility of services and financial literacy
A wide array of digital solutions and multiple sales channels is utilised to offer clients easily
accessible services and streamline business transactions.
118
Communication channels
: The services of Zavarovalnica Triglav and Triglav Skladi are available
via toll-free telephone numbers and email. Call centres also operate in Croatia, Serbia and North
Macedonia. The TRIA virtual assistant was upgraded with artificial intelligence to offer clients a
more natural, flexible and interactive communication experience.
▪
The DRAJV mobile app:
The app is used by approximately 65,000 drivers every month, who
have driven a total of over 1.8 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. The DRAJV map, which identifies
hazardous road sections and aids in planning safer routes, was also presented, contributing
to improved road safety.
▪
The i.triglav digital office:
The i.triglav digital office, also available as a mobile app, enables
clients to manage most insurance-related matters and access the Company's other services.
These include taking out or renewing insurance policies, reporting claims and tracking their
status, ordering assistance (available only in the mobile app), and reviewing insurance details
and benefits. The number of users of the i.triglav digital office increased by 20 %, now
exceeding
a quarter of a million of users. Clients can also use the platform to check the
balance of their savings at Triglav Skladi and the balance of their life and pension insurance
assets. In 2024, the Risk Assessment for Your Home tool was launched, offering a quick and
personalised risk assessment for floods, fires, earthquakes and extreme weather events. The
interactive interface provides recommendations for appropriate insurance solutions,
encouraging preventive behaviour and fostering trust in the Company's services.
▪
The Triglav Vreme mobile app:
Provides access to reliable weather information and forecasts
provided by the Slovenian Environment Agency, along with warnings about weather-related
hazards.
▪
Mobile appraisal units at CAT events:
In the affected areas, mobile appraisal units are set up
for a quick and prompt damage assessment. In 2024, five mobile appraisal units were set up
after five major and small hailstorms in Slovenia, which carried out a total of over 4,000
appraisals of damaged vehicles.
▪
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
Digital
transformation
in Section
4.4 Development activities
for more information on 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 Medical Advice/Doctor 360
insurance product: Clients can consult with a specialist physician by telephone or video call.
118
S4.SBM-3_05.
188
▪
Safe driving simulator at Triglav Lab:
Designed for young drivers and those returning to
driving, the driving simulator allows users to experience unexpected road hazards in a safe
and controlled environment.
Access to Zavarovalnica Triglav's insurance services for people with disabilities
119
At Zavarovalnica Triglav, services and premises are continuously adapted to the needs of people
with disabilities, supporting their social inclusion:
▪
A total of 75% of our points of sale offer independent access for people with various
disabilities. In 2024, the relocation and redesign of the reception area on the ground floor
improved accessibility for clients at the Tolmin and Odranci business units.
▪
100% of the points of sale are equipped with aids for partially sighted persons.
▪
100% of the regions' 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.
10.3.2.3
Data privacy and security
The IT strategy outlines the strategic objectives and actions related to information security,
focusing on ICT systems, services, people and processes. The aim is to establish a robust cyber
resilience framework that ensures technological security, optimal performance and rapid
recovery from breaches and incidents, while maintaining the highest level of information
security (confidentiality, integrity, authenticity and availability) of data. The Company is
committed to IT standards and best practices in information security and personal data
protection.
Privacy is governed by the Personal Data Protection Rules, along with more detailed rules for the
lawful processing of data in specific business segments. Information security is governed by the
Company's Overarching Information Security Policy, which defines the basic requirements for
establishing, operating, monitoring, maintaining and improving the information security
management system. Both the Personal Data Protection Rules and the Overarching Information
Security Policy are part of the minimum standards for the Group's subsidiaries. The parent
company provides advisory support, monitors implementation and even oversees the review of
personal data processing agreements among Group members.
120
At the Company, the Privacy Policy and related internal acts are regularly reviewed, along with
the list of categories of processors and controllers and cookie policies. Special attention is given
to reviewing the personal data protection information for individuals engaging in business with
the Company through foreign entities. Before entering into agreements, the adequacy of
personal data protection for business partners involved in data processing is assessed. The
Company prioritises a comprehensive and documented ICT risk management framework, Which
includes internal ICT protocols and tools to ensure the adequate protection of all IT and ICT
assets, as well as relevant physical components and infrastructure.
121
The Company processes requests from individuals to exercise their personal data protection
rights, maintains records of data breaches and monitors the implementation of compliance
measures across both the Company and the Group. All Group companies have designated
personal data protection officers or coordinators..
122
119
GRI G4-FS14.
120
S4.MDR-P_05.
121
S4-4_01.
122
S4-3_01.
189
Across the Group, 43 substantiated reports of privacy and data breaches, including personal data
loss, were recorded. Of these, 41 were substantiated complaints at the Company, with 26 arising
from the conduct of insurance business in the Polish market.
123
No material sanctions for non-
compliance with personal data protection regulations were imposed on the Group. In response
to identified breaches, the internal control system is being upgraded to prevent future incidents.
Data privacy and security are regularly communicated to employees, with ongoing training that
must be periodically renewed. On average, each Company employee received 0.8 teaching hour
of training on personal data protection.
10.3.3
Community engagement (S3)
The Group's strong commitment to corporate social responsibility is reflected in its projects,
partnerships and donations, which align with its strategic guidelines.
In parallel, the Group will
promote environmental and social responsibility projects that contribute to the achievement of
the United Nations Sustainable Development Goals (SDGs).
Engagement with local communities is guided by in-house policies and international best
practices.
The rules on the implementation of prevention activities and the allocation of funds
for prevention
define the general principles and guidelines for the development of prevention
activities, sources of funding and implementing bodies, the purpose and conditions for the use
of the funds allocated to prevention, and the process for carrying out these activities.
The
sponsorship and donor partnerships rules
and
the guidelines
on sponsorship and donation
management
govern the terms, conditions, methods and processes of sponsorship and donor
partnerships.
Practices adopted in the parent company are transferred to the Group subsidiaries
by implementing minimum standards
.
124
As outlined in the Triglav Group Code, the Group aims to play an active role in economic
development through its business activities and improve the quality of life of employees and
their families, the local community and society at large. In partnership with its stakeholders, the
Group provides support to sports, cultural, educational, road safety, property safety,
environmental and health activities.
125
The achievement of this main objective is measured through reputation surveys. For each
medium- to large-scale project or programme, the Group monitors its reach and contribution,
taking into account the use of resources. This includes measuring media coverage, impact on
local communities' behaviour, drivers, risk reduction (e.g. road accidents, safe kilometres
travelled, education). The Group has not yet defined the detailed methodology and data sources
for the described community-related objectives, nor assessed their alignment with national,
international or EU policies. Relevant stakeholders are involved in the target-setting process, as
outlined in the context of the double materiality assessment process and in the stakeholder
engagement table. Implementation is regularly monitored and reviewed
(including the baseline
value and baseline year for measuring progress), though details are not publicly disclosed due to
business confidentiality. In the coming reporting periods, the focus will be on further improving
transparency and gradually introducing methodological approaches to allow for greater
alignment with ESRS requirements.
126
123
GRI 418-1.
124
S3.MDR-P_01–05.
125
S3-1_04.
126
S3.MDR-T_01 –13.
190
The volume of generated assets distributed among various stakeholders of the Group is shown
by economic value distributed, which amounted to EUR 1.621,3
million in 2024.
Economic value distributed of the Triglav Group
127
EUR million
2024
2023
2024/2023
Economic value generated
1,712.9
1,642.4
104
Economic value distributed
1,621.3
1,682.9
96
Gross written premium and net reinsurance result
819.6
989.6
83
Expenses from financial assets
278.9
207.0
135
Other expenses
41.0
29.5
139
Operating expenses (excluding employee payments, allowances and
benefits and investments into the community)
198.3
188.4
105
Employee payments, allowances and benefits
206.5
197.9
104
Dividend payments
39.7
56.8
70
Tax expense
27.6
4.8
576
Investments into the community (prevention, donations, sponsorships)
9.5
8.9
107
Economic value retained
91.7
–
40.5
* The figures for 2023 are unaudited.
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. Their content is defined based on:
128
▪
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, marketing and opinion surveys.
In 2024, the Group allocated a total of EUR 9.5 million for investment in prevention, sponsorships
and donations, with 30% designated for investment in prevention, 61% for sponsorships and 9%
for donations.
129
10.3.3.1
Investment in prevention
Prevention programmes, an important social aspect of insurance industry's sustainable impacts,
reduce risks and are also prescribed by law. The bulk of funds is allocated to improving traffic,
health and fire safety.
127
GRI 201-1.
128
S3-2_05.
129
S3-4_12.
191
Funds allocated to preventive activities of the Triglav Group and Zavarovalnica Triglav in EUR
million*
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
The share of the Triglav Group's and Zavarovalnica Triglav's funds for preventive activities by
purpose*
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
Prevention projects
Through prevention projects and activities, the Group works to prevent disasters, mitigate and
manage the impact of damage across various areas. Efforts are focused on innovation,
leveraging advanced technologies to enhance safety and risk awareness, and understanding
generational needs and opportunities. Special emphasis is placed on mental health awareness
through the #zVamiSmo initiative and on financial literacy through the Insure Our Future
project.
2.3
2.8
3.1
2.9
3.3
4.1
2024
2023
2022
Zavarovalnica Triglav
Triglav Group
2.0%
1.3%
7.9%
0.1%
32.5%
4.4%
51.8%
1.6%
1.4%
6.3%
3.2%
28.8%
7.9%
50.9%
Environment protection
Intruder detection
Education
Agriculture
Fire safety
Health
Traffic safety
Triglav Group
Zavarovalnica Triglav
192
The largest prevention projects of the Triglav Group in Slovenia in 2024 by area
130
Health prevention
Impact
Assistance in the event of a sudden
cardiac arrest
▪
Co-financing or purchase of 24 defibrillators in local communities – 234 since 2014.
▪
Co-financing of training in first aid.
Mental health
▪
A World Mental Health Day consultation on mental health activities for a quality and
healthy life is carried out, along with
the Open about the Hidden
(Odkrito o skritem)
podcasts, which address issues affecting young people.
▪
The #zVamiSmo initiative, which together with athletes raises awareness of the
importance of mental health among the general public, is a collaboration between the
Football Association of Slovenia and the Triglav Group.
Traffic safety
Impact
Long and safe mobility for drivers,
partner: AMZS
▪
A total of 300 drivers aged 60+ participated in refresher rides with a driving instructor.
▪
For the fourth consecutive year, the Refresher driving for senior drivers project has been
providing older drivers across Slovenia with the opportunity to refresh their driving
skills and knowledge. More than 1,500 older drivers participated in the project.
▪
A workshop on testing ADAS and a consultation on safe mobility for senior drivers were
organised.
▪
An interactive booklet featuring crosswords and educational content on road safety for
senior drivers was published.
Partner: Zavod Reševalni pas
(Rescue Lane Institute)
▪
2,000 magnetic "Rescue Lane" stickers for cars, promoting the creation of an emergency
lane in traffic, were distributed across 55 Zavarovalnica Triglav locations in Slovenia.
Together for Road Safety project,
partner: COPS system
▪
At traffic black spots throughout Slovenia, 16 COPS@zebra systems were installed
(almost 100 systems in Slovenia in total).
Together for Road Safety project,
partners Sipronika and Zavod Vozim
(Vozim, Institute for Innovative
Education)
▪
A total of 118 speed display signs in local communities, at high-risk road sections and
in the vicinity of schools and kindergartens were set up (within nine years), 12 of which
in 2024.
Safe micromobility, partners: Vozim
Institute, Institute of Civilisation and
Culture, Butan plin, Slovenian Traffic
Safety Agency, National Education
Institute of Slovenia
▪
As part of the
Use Your Head, Don't Lose It
(Ne bluzi, z glavo kruzi) initiative, the
Be
bright, be safe
(Dejmo se videt) project for safer urban mobility among young people
was developed in collaboration with the Vozim Institute, the Faculty of Natural
Sciences and Engineering at the University of Ljubljana and the Yootree agency.
Fashion design students contributed to the creation of an innovative collection of
reflective clothing and visible accessories.
▪
A total of 28 workshops at schools and 6 workshops at open events for the safe use of an e-
scooter using a simulator.
▪
Three major events as part of
Crossroads of Micromobility
(Ljubljana, Preska, Celje) were
held to examine the behaviour in micromobility across all generations.
▪
A survey of 1,200 e-bike and e-scooter users was conducted to assess risks and safety
attitudes.
▪
Two focus workshops at Triglav Lab explored the perception of micromobility users,
risks, and solutions for safer micromobility.
▪
Over the past 11 years, more than 10,000 primary school pupils have participated in
cycling literacy activities focusing on sustainable mobility, traffic rules and active
leisure. Since the start of the project, more than 15 secure bicycles have been donated
to participating schools, and over 23 mobile bike services have been organised for
pupils' bicycles.
▪
Participation in the M-bike project in Maribor to promote the transition to cycling,
offering accessible bicycles for hire and ensuring safe cycling paths.
Interactive workshops for secondary
school students "I still drive but I no
longer walk", partners: Zavod Vozim
(Vozim, Institute for Innovative
Education) and Sipronika
▪
At 108 workshops in person or online, 8.000 young people listened to personal stories
of traffic accident victims and became acquainted with the DRAJV safe driving app.
▪
500 young people researched the influence of speed on impact load and braking
distance at six specialised workshops and technical days.
130
S3-4_03, S3-4_16, GRI 203-1.
193
Development of the DRAJV safe
driving app
▪
1.8billion kilometres travelled with the DRAJV app since its launch.
▪
65,000 monthly active users.
▪
Launch of the DRAJV map, the first publicly available online tool of its kind in Slovenia,
which compiles data on the most hazardous road sections and the most frequent
traffic challenges encountered on Slovenian roads.
▪
National awareness-raising event entitled
Anatomy of Driving: Using DRAJV Data for
Safer Routes
.
Fire prevention
Impact
Fire-fighting protective equipment,
partners: fire brigades and
associations
▪
Co-financing of the purchase of protective equipment, fire-fighting equipment and fire
engines as well as investments in fire stations for 75 volunteer fire brigades and
associations.
Fire safety awareness
▪
Partnership with the Slovenian Fire Protection Association (activation at the Safety and
Prevention event).
▪
Participation in the Heavy Rescue Slovenia event, demonstrating the operation and
firefighting techniques for electric and alternative fuel trucks to our clients.
Protection of the natural
environment
Impact
Keeping mountain trails well-
maintained and safe, partner: the
Alpine Association of Slovenia
▪
Support for the restoration of the Koželje trail along Kamniška Bistrica, winner of the
Best Mountain Trail
competition.
▪
Extraordinary support for the restoration of the Topla Cave to Mala Peca trail in
Koroška, which placed second in the
Best Mountain Trail
competition.
Playground renovation
▪
Co-financing the purchase of playground equipment for Kranj kindergartens, adapted
for children with developmental difficulties.
In the context of the traditional New Year's prevention campaign
For a Better Tomorrow
(Za
boljši jutri), 27 prevention projects were supported in local communities across Slovenia. Funds
were allocated to firefighters, healthcare institutions, a care home, an education, rehabilitation
and training centre, a cerebral palsy society and municipalities. Over the past ten years, more
than 270 prevention projects have received our support.
High profile and comprehensive prevention projects of the Triglav Group in the markets outside
Slovenia in 2024 by area
Traffic safety
Impact
Preventive equipment and training for technical
centre staff in Montenegro
Co-financing of protective equipment and staff training to reduce risks
and enhance road safety.
Protection of the natural environment
Impact
Environmental drive marking the 20th
anniversary of Slovenia's membership in the
European Union (part of the Slovenia Green
initiative, Association of Slovenian and
Macedonian Entrepreneurs, North Macedonia)
Cleaning up local landfills.
Fire safety
Impact
Protective and firefighting equipment, partners:
various firefighting organisations and companies,
Bosnia and Herzegovina
Co-financing of fire protection and firefighting equipment.
10.3.3.2
Sponsorships and donations
A unified set of guidelines governs sponsorship and donor partnerships to ensure alignment
with the Company's values, principles and brand identity. 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.
194
Funds for sponsorships of the Triglav Group and Zavarovalnica Triglav by purpose*
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
Funds for sponsorships of the Triglav Group and Zavarovalnica Triglav in EUR million*
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
0.0%
1.0%
3.0%
1.0%
13.0%
82.0%
0.0%
0.7%
2.2%
1.8%
10.8%
84.6%
Environment projects
Health
Sustainability projects
Education
Culture
Sports
Triglav Group
Zavarovalnica Triglav
3.7
3.2
2.9
5.8
4.7
5.1
2024
2023
2022
Zavarovalnica Triglav
Triglav Group
195
Funds for donations of the Triglav Group and Zavarovalnica Triglav in EUR thousand*
* The figures for 2023 are unaudited. The 2023 figure for Zavarovalnica Triglav does not include data for Triglav, Zdravstvena zavarovalnica, which was merged into
Zavarovalnica Triglav in 2024.
Triglav Lab's activities
In 2024, the Triglav Lab development and demonstration centre hosted 130 events and
workshops for various educational, preventive, business, product, awareness and brand-building
purposes.
These
included
thematic
events
related
to
home,
mobility,
health,
financial/digital/insurance literacy, such as
Prepared for the (Un)predictable: On the Earthquake
Fault Trace
,
Safe with the Dog in the Mountains,
When AI TRIA Speaks
,
Anatomy of Driving: Using
DRAJV Data for Safer Routes
,
Let's Be Seen
, among others. A total of 20 press conferences were
hosted: Ski Association of Slovenia, Slovenian Football Association,
Onkoman
,
Firecrackers, No
Thanks!
Triglav Lab further strengthened its role in development, testing and research through
various activities, also aimed at obtaining user feedback and building contacts. Special emphasis
was placed on young people, raising the profile of this target group and gaining their insights
into the insurance industry. Nearly 1,000 young people participated in 40 events and workshops,
including the Triglav Group's Top Experience, A Career after a Career and the Finance School for
Young People in collaboration with Moje Finance magazine, DMS Student Section and others.
Awareness-raising efforts in the area of psycho-physical fitness were reinforced with events such
as
Care for the Brain
,
Let's Talk about Alcohol
and
Digital Addiction
. Additionally, five episodes of
the Triglav Lab podcast
Open about the Hidden
, were recorded, addressing issues that concern
young people. Through research and mobile Triglav Lab activities, field activations on
the
Crossroads of Micromobility
(3) and quantitative and qualitative research on micromobility
perceptions were conducted. With other simulators and the 3D avatar TRIO, the Company was
present at 30 locations across Slovenia.
Everything Will Be Alright Institute
The scope of activities of Zavarovalnica Triglav's Everything Will Be Alright Institute (Zavod Vse
bo v redu) includes corporate social responsibility initiatives to support and assist disadvantaged
members of society, as well as preventive activities. The main projects in 2024 were:
▪
Young Hopes – supporting young talents
The Young Hopes (Mladi upi) corporate social responsibility project provides support to young,
talented individuals who are just starting to break through in their fields but face challenges
securing professional or sponsorship funding to develop their potential. Through this project,
the Company and its Everything Will Be Alright Institute financially support dedicated young
417.8
702.2
669.4
813.3
853.9
1,073,0
2024
2023
2022
Zavarovalnica Triglav
Triglav Group
196
people, providing tangible assistance in the development of their skills, ambitions and talents.
The 12th Young Hopes open call was launched in 2024, receiving 57 applications from various
fields: sport, para-sport, art and science. From the 57 applications, a panel of judges selected 12
outstanding young talents: five artists, six athletes and one scientist. The para-athlete was
chosen through online public voting.
Following last year's extreme weather events, the Institute once again donated funds to support
those affected by floods and storms through three organisations: Adra, Slovene Philanthropy
and Slovenian Association of Friends of Youth.
In solidarity with those affected by violence, accidents and diseases caused by alcohol, the
Everything Will Be Alright Institute participated in the 40 Days Alcohol-Free campaign for the
ninth consecutive year, under the slogan "A Source of Joy and Unity". The campaign promotes
healthy and sober lifestyles through activities for the general public. This year, the campaign
brought visitors to the valley below the Ponce Mountains for the FIS Ski Jumping World Cup
Finals, promoting responsible alcohol consumption through voluntary breathalyser tests.
As part of its humanitarian and preventive efforts to mitigate loss events and address their
consequences in Slovenia, the Institute signed a commitment to long-term cooperation in the
Green Heart of Karst project. The Group joined the Karst reforestation project, which, in
collaboration with the Slovenian Forest Service and other stakeholders, aims to restore the green
image and reforest the recently fire-ravaged Karst region.
On 22 November 2024, over 50 Group employees, along with other volunteers from Slovenia and
abroad, planted around 20,000 seedlings of native deciduous trees at the site of the catastrophic
fire in the Fajtji Hill area in the municipality of Renče. The Everything Will Be Alright Institute
contributed EUR 16,000 in total in 2022–2024 for the restoration of both the Karst forest and
the entire ecosystem of one of the most biodiverse areas in Europe. These funds were allocated
to the Slovenian Forest Service.
Information on corporate social responsibility partnerships:
Zavarovalnica Triglav d.d., Ljubljana
Miklošičeva cesta 19, 1000 Ljubljana
Email:
sponzorstva@triglav.si
10.4
Governance aspects
The Group is aware that by acting legally and ethically and by respecting the fundamental
principles of corporate integrity it maintains its safe operations, reputation and credibility,
ensures the efficient management of the Group and strengthens the mutual cooperation and
trust of its shareholders, investors, clients, suppliers, partners and other stakeholders. Efforts are
made to establish appropriate, transparent, clear and up-to-date rules of conduct and
procedures, including mechanisms to ensure legality and compliance.
10.4.1
Business ethics (G1)
The Group has established policies and internal acts to manage material impacts, risks and
opportunities related to business conduct and corporate culture, including
the Triglav Group
Code, the Corruption Risk Management Policy, the Rules on the Handling of Internal Fraud and
Violations of the Triglav Group Code, the Rules on the Protection of Workers' Dignity, the
Agreement Management Policy, the Rules on Sponsorship and Donor Partnerships, the Rules on
Procurement at Zavarovalnica Triglav
, and others.
197
Zavarovalnica Triglav complies with the United Nations Global Compact Slovenia Declaration on
Fair Business and is a signatory to the Commitment for implementing the principles of fair and
ethical conduct and ensuring integrity and transparent business, the Slovenian Corporate
Integrity Guidelines, and the Commitment to Respect Human Rights in Business in line with the
National Action Plan of the Slovenian Ministry of Foreign and European Affairs. The Group is also
in the process of transposing the guidelines of Directive (EU) 2019/1937 on the protection of
whistleblowers. All Group companies comply with the legislation of the countries in which they
operate, with the parent company's practices integrated into their operations through the
Zavarovalnica Triglav's minimum standards for its subsidiaries.
131
Corporate culture
132
Corporate culture is defined by the Triglav Group Code (hereinafter: the Code), the Group's main
ethical document and foundation. The Code establishes uniform business and ethical standards
for companies, consolidating the standards of conduct used. It provides guidance for drafting
other internal documents of Group companies, which must comply with its provisions. It applies
to both governance bodies and all employees and is translated into all the languages in which
the Group operates. The Code emphasises that engaged, highly professional and motivated
employees are the foundation of sustainable development and accountability to all
stakeholders.
The
Compliance Office
business function
administers the Code, ensuring corporate culture
development and continuous communication and employee training on the ethical standards
adopted by the Company and the Group. It also manages the procedure dealing with Code
violations and internal fraud in accordance with the Rules on the Handling of Internal Fraud and
Violations of the Triglav Group Code, and prepares amendments and upgrades to the Code.. It
also prepares amendments and upgrades to the Code, participates in external activities related
to ethical performance and development, and monitors compliance with the Insurance Code and
the Company's other ethical commitments. The Compliance Office identifies, measures and
assesses compliance and corporate culture risks by evaluating the risk of violations of the Code's
core values and ethical principles. It also maintains a risk register and an internal control register.
Compliance risk assessments are reported to the (operational) risk management body.
In line with the Compliance Policy, all employees receive regular training on compliance risk
assessment, regulatory requirements and other commitments. The Compliance and Sustainable
Development
Committee
addresses
complex
issues
related
to
legislation
and
its
implementation, positions of supervisory or other government/EU bodies, and matters
concerning
transparent
and
ethical
business
conduct.
Compliance
development
and
implementation across all Group companies are ensured through the preparation of minimum
standards for Group subsidiaries, as well as through guidance, expert advice, internal
documents, training materials, regular compliance monitoring in subsidiaries, risk assessments
and targeted reviews. This approach standardises business processes, facilitates knowledge
transfer, and promotes corporate culture exchange of know-how in good business practices
across the Group's insurance and financial companies. An annual communication plan and
training calendar are prepared for employee training.
133
The Corruption Risk Management Policy places special emphasis on managing risks in high-
exposure areas. In 2024, a survey on indications of corruption within the Triglav Group was
conducted among employees at the government level, the insurance sector level, the individual
company level, as well as at the level of business processes and groups of individuals working at
131
G1-1_12.
132
G1.MDR-P_01, G1-1_01.
133
G1-1_10.
198
or for the Company. The survey also assessed the adequacy of rules and controls for preventing
corruption, the level of zero tolerance towards corruption and the detection of bribery cases.
Results indicated that public procurement, purchasing, claims processing and settlement, and
insurance sales through contracted points of sale are slightly more exposed to corruption risk.
134
Procedures for identifying, managing and taking action in the event of unlawful conduct
The Rules on the Handling of Internal Fraud and Violations of the Triglav Group Code regulate
the consideration, identification, reporting and investigation of unfair practices.
135
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 50 or more employees, a whistleblower may also report violations
through
a
dedicated
application,
which
is
accessible
at
https://prevare.triglav.eu/whistleblower/#/zt
. This platform ensures that the identity of the
whistleblower is protected (including anonymous handling) and that high standards of security
are applied.
Other identification mechanisms include the detection of key and control functions within
audits, the exchange of information between them, the identification of non-compliant
behaviour through audit findings, external bodies and the mandatory reporting of detected
violations and operational loss events by organisational units to the Compliance Office and the
Risk Management Department. The Compliance Office reports to relevant internal committees
and departments, as well as the Management Board and the Supervisory Board, on a half-yearly
basis about procedures for handling suspicions of corruption. In the event of a confirmed
suspicion, it informs the Management Board and, where appropriate, the Supervisory Board.
136
Measures are in place to protect whistleblowers from retaliation and to provide immediate
assistance in cases of imminent threats to them or their families. These measures include the
possibility of transfer to an equivalent post, free legal assistance, support in informing law
enforcement authorities, security measures, and other necessary actions and sanctions against
perpetrators. Additional safeguards for employees ensure the unconditional recognition of the
right to report alleged unwanted conduct, ensuring that reports are handled appropriately, with
due consideration and confidentiality, and preventing disclosure to unauthorised persons.
Reports are addressed promptly through a fair hearing and procedure, with appropriate action
taken against perpetrators of unwanted conduct, while false allegations are sanctioned.
137
In 2024, the Group dealt with 20 reports of alleged violations of the Code and 10 cases of
reported suspected internal fraud, of which 13 Code violations and 9 instances of internal fraud
were confirmed.
Insurance fraud management
138
The insurance fraud management system is 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. Insurance fraud was confirmed in 1,119 cases
out of 1,756 reported cases of suspected fraud in 2024. Employees are the first line of defence
against fraud, which is why they undergo regular training on identifying suspected insurance
134
G1-1_11.
135
G1-1_08.
136
G1-1_02, G1-3_03.
137
G1-1_05.
138
SASB: FN-AC-510a.1, FN-AC-510a.2.
199
fraud. In 2024, 42 hours of employee training on insurance fraud were conducted, along with
participation in 14 hours of external events on the subject. Cooperation with relevant
government bodies and other insurance companies in the fight against fraud is ensured as
necessary.
Anti-corruption behaviour
139
The Corruption Risk Management 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.
The Anti-Corruption Policy defines the
procedure for reporting and handling cases that may pose a corruption risk and requires
employees to take an active role.
Prohibitions are enforced in areas such as making donations and sponsorships to public natural
and legal persons, political parties (as also prohibited under the Political Parties Act) and religious
organisations; receiving or giving gifts or hospitality of significant value or in inappropriate
business situations; facilitating official procedures; and other relevant areas. The Company and
Group members conduct lobbying activities strictly in accordance with legal requirements and
the principle of transparency. In 2024, the Group did not engage any external registered
lobbyists and therefore incurred no expenses for this purpose.
140
Once adopted, policies are published on the intranet of Group companies or through other
customary channels and are accessible to all employees. General terms and conditions for
potential and existing business partners, which include provisions on the prevention and
detection
of
corruption
and
bribery,
are
published
on
the
website
(
https://www.triglav.eu/sl/trajnostni-razvoj/odnosi-z-dobavitelji
) and, in relation to client
business, through the common provisions of the general terms and conditions of insurance.
141
The Company provides regular employee training and conducts communication programmes on
anti-corruption. The table below outlines the 2024 training sessions on corruption-related
topics, including: risk, identification and reporting, underwriting, whistleblower protection,
public procurement, receiving and giving gifts and hospitality, sponsorships, donations, respect
for human rights and related topics. Training is typically conducted annually, with a mandatory
knowledge assessment at least once every three years, covering the following areas: definition
of corruption, corruption risk management policies, third-party contracting procedures,
procedures for handling suspected or identified corrupt practices, employee obligations
regarding corrupt practices, protection of whistleblower identity and safeguards against
retaliation, public procurement procedures, gifts, sponsorship and donations, respect for human
rights and related topics. Training courses are available via the Group's E-Campus and include a
post-training knowledge assessment.
142
Training programmes cover all employees, including those in high-risk roles for corrupt practices,
as well as other employees.
143
139
G1.MDR-A_01–05, G1-3_01, G1-3_06, G1-3_08.
140
G1-5_02, G1-5_03, G1-5_06.
141
G1-3_05.
142
G1-3_06.
143
G1-3_07.
200
The number of training hours on corruption prevention
144
Employees in key
functions of the
governance system
Leaders
Management Board
and Supervisory
Board
Other employees
Training coverage
Total required
90
250
10
1,880
Total implemented
111
481
12
4,879
Training method
In-person training
24
40
24
Computer-based training
87
441
12
4,855
Frequency
How often training is required
twice yearly
annually
annually
annually
In 2024, no confirmed cases of corruption were recorded in the Triglav Group, nor were any
convictions, fines or other measures imposed for violations of anti-corruption legislation.
145
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.
10.4.2
Supplier relationship management
Zavarovalnica Triglav's Procurement Policy applies to all relevant commodity groups. 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. The parent company's practices are already
being implemented in certain areas in the companies of the Adria region, and further transfers
and standardisation of procurement procedures are planned for 2025. The procurement policy
for each commodity group defines the relevant characteristics of the supplier market and
associated risks. Updates to the procurement policy are made based on identified risks, changes
in the supplier market, regulatory developments or adjustments in the Company's strategy.
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 adopted general terms and conditions for suppliers require a
sustainability assessment for all suppliers and contractual partners before an agreement is
concluded. At a minimum, compliance with all legal requirements is mandatory.
146
Important criteria in assessing supplier suitability include risks of corrupt practices, conflicts of
interest and political exposure. When assessing business sustainability, the Company evaluates
respect for human rights, the provision of a safe and healthy work environment for employees
and other workers, compliance with Slovenian legislation, international human rights
documents and environmental legislation requirements. Since 2023, suppliers' ESG maturity has
also been quantitatively assessed using a scoring system. New suppliers undergo assessment in
144
G1-3_08, G1-4_03.
145
G1-4_01, G1-4_02, G1-4_03, G1-4_04, G1-4_05.
146
G1-2_02.
201
the selection process, while existing suppliers are reviewed annually. The aforementioned ESG
criteria were applied to evaluate 1,047 suppliers and potential suppliers participating in the
selection process. Whenever possible, preference is given to local sourcing (minimising
international transport) and sustainable sourcing (recycled materials, renewables, reuse,
refurbishment). These priorities are applied on a level playing field. Under the general terms and
conditions, suppliers are required to report any changes that affect sustainability aspects or
compliance with these terms.
147
Insurance agents and sales staff also form a large part of the Group's sales network. In 2024, it
included over 1,640 outsourcers. See
Appendix 2. Business network of the Triglav Group
for
further information. The Group prioritises open communication with business partners and the
development of genuine business relationships, in which consistently meeting contractual
obligations and adhering to agreed payment practices are key. At the Group, the general terms
and conditions (
https://www.triglav.eu/sl/trajnostni-razvoj/odnosi-z-dobavitelji#
) and legally
defined deadlines are followed when setting payment terms. This approach is applied uniformly,
ensuring that all suppliers are treated equally, regardless of legal status or size. The standard
payment period is 30 days, unless otherwise contractually agreed, which is often sector-specific.
On average, invoices received have a payment period of 17 days.
In 2024, the Group paid invoices on average within 13 days of the contractual or statutory
payment date. The calculation included 81,788 invoices received from suppliers.
A total of 80%
of invoices received from suppliers were paid in accordance with the contractual payment
terms.
148
147
G1-2_03.
148
G1-2_01, G1-6_01, G1-6_02, G1-6_03.
202
10.5
Limited Assurance Report on Sustainability Information
203
204
205
206
207
208
11.
Digital Operational Resilience Report
11.1
Information security risk management
At the core of digital operational resilience is ensuring the confidentiality, integrity, authenticity
and availability of the information and systems that support the implementation of the Group's
strategy. These principles are upheld by all Group companies through adherence to minimum
standards.
To effectively manage information security risks, including those related to information and
communication technology (ICT), the Group has established
an information security
management system
(ISMS). These risks are managed as a key component of
operational risk
management within the comprehensive risk management system (see Section
9.1 Risk
management system
). Information security objectives are aligned with strategic goals, with
specific measures developed to achieve them.
Information security risks are regularly assessed in accordance with
ISO/IEC 27001 requirements
and relevant legislation
. This process involves identifying and analysing potential threats and
vulnerabilities that could impact the security and continuity of business processes. Based on
these assessments, guidelines and detailed measures are formulated to manage and mitigate
risks effectively and enhance security practices. A proactive approach is considered essential to
achieving information security objectives. Therefore, assessment results, identified risks and
proposed measures are regularly discussed at internal committee meetings, such as the
Operational Risk Committee, and at Management Board meetings.
11.2
Information security objectives
Information security objectives are shaped by the needs and expectations of key stakeholders
and aligned with strategic goals. The performance of control processes is regularly monitored
through a set of indicators, which were upgraded and further refined in 2024. These indicators
track five key objectives:
▪
Ensuring confidentiality, integrity, authenticity and availability of information processed in
business processes.
Successful identification and effective management of incidents, which are fundamental to
information security and digital operational resilience. In 2024, the Company's incident
management process was overhauled, leading to improved identification and a 40% increase in
incident handling compared to the previous year, all of which were of low severity.
Security monitoring systems detected 22% more security incidents related to ICT systems and
services, all of which were effectively resolved – 40% through automated means based on
predefined rules.
▪
Information security risks associated with the Group's business, ICT assets for business
processes and outsourcers (including subcontractors) in the ICT area are continuously
identified and managed to maintain them at an acceptable level.
The Company's effective and comprehensive ICT risk management framework was upgraded in
line with the Digital Operational Resilience Act (DORA), with a stronger focus on ICT outsourcers
and associated risks, with a more in-depth assessment of these risks. In 2024, 17% more risks
were assessed compared to the previous year.
209
▪
Staff training and employee awareness initiatives ensure a consistently appropriate level of
knowledge regarding information security risks in the Group's operations, as well as
technological solutions and other risk management methods. Roles and responsibilities are
assigned to employees to ensure collective responsibility for information security,
minimising the impact of security threats.
All employees receive regular training on information security and social engineering techniques.
Updates on current cybersecurity threats and guidance on maintaining high security levels of
information and assets are provided via the internal portal and email. Employee awareness is
continuously monitored through post-training tests and annual evaluations of social
engineering recognition, with a focus on phishing. Staff also receive additional training on
information security aspects through professional workshops, seminars and conferences.
In 2024, the scope of mandatory training was expanded and revised to address current
cybersecurity risks. On average, employees completed at least one additional information
security training compared to the previous year. Awareness levels are assessed through post-
training tests and annual social engineering simulations, particularly targeting phishing. A
positive trend in awareness improvement has been observed. Staff receive additional training on
information security aspects through workshops, seminars and conferences.
▪
Business continuity is ensured to the greatest extent possible, even when relying on
external ICT service providers. Business damage caused by security incidents is minimised
through effective identification, resolution and mitigation of consequences.
In 2024, business continuity plans were revised to cover a broad range of organisational units
and security threats, supported by awareness-raising workshops on business continuity
management. Regular analysis identifies critical business processes and ICT assets, as well as the
time required to restore operations in the event of major security incidents. ICT processes and
systems supporting the Company's services are regularly tested for business continuity. An
annual self-assessment of the highest risk concentrations by process was conducted in 2024. Test
scenarios are designed based on prevailing threats and trends in digital operational resilience,
with a particular focus in 2024 on scenarios involving the recovery or re-establishment of critical
ICT systems (see Section
2.8.2.6 in the Accounting Report
for more details on business continuity
system).
▪
The performance of the Company's information security management system is
continuously monitored and improved to ensure compliance with legislative requirements,
European Supervisory Authority (EIOPA) guidelines and positions of the relevant
supervisory authorities.
In 2024, DORA requirements were intensively implemented to enhance digital operational
resilience. Processes and procedures related to ICT assets and services were upgraded based on
updated information security documents, incorporating recommendations from internal and
external audits and additional requirements from the latest edition of the ISO/IEC 27001
standard.
11.3
Adopted information security and digital operational resilience frameworks
The information security management system of the Company, as the parent company, and the
Group, as its operator, is certified under ISO/IEC 27001, reinforcing a commitment to continuous
improvement. In addition to regular activities such as risk management, verification of the
effective functioning of implemented controls and reporting to top management on the active
management of the system, a successful transition to the revised and upgraded requirements of
the standard was completed in 2024. This was confirmed at the end of the year by an external
independent audit and the renewal of the certificate.
210
The ICT risk management system was further upgraded by implementing DORA requirements.
The Company's internal documents were also revised to align with the new ISO/IEC 27001
standard and the DORA.
11.4
Measures to improve ICT incident preparedness
ICT incidents can significantly impact the Group's operations and the achievement of strategic
objectives. Regular planning and implementation of activities ensure the identification of
current ICT risks, the establishment of measures to reduce them to an acceptable level, and the
enhancement of response capabilities for identified ICT events and incidents. This approach
limits and swiftly mitigates their impact while implementing measures to reduce the likelihood
of, or prevent, new ICT incidents (see Section
4.1.3 Digital transformation and cyber security
).
Security and monitoring tools are in place to continuously track the performance of ICT systems
and services and detect events that could impact security. High-performance automation,
leveraging artificial intelligence and machine learning capabilities, effectively addresses
identified vulnerabilities, thereby strengthening the security of systems and services. The current
approach is based on a zero-trust architecture. The Company's cyber security operations centre
focuses on prevention activities, early identification and real-time response to security incidents
to prevent data loss and minimise the impact of incidents on the Group's operations.
Regular reviews of the security management system ensure that processes align with internal
regulations
and
that
security
measures
are
effective,
supporting
continuous
system
improvement. These reviews involve qualified and independent experts, and their frequency is
determined based on business needs and identified risks. Security reviews of ICT systems and
services across Group companies are carried out according to the Company's and Group's plans,
including both regular scheduled and unannounced reviews. As part of the business continuity
management system, the Company and the Group test recovery plans under various scenarios,
such as the unavailability of certain sites. Lessons learned are incorporated into internal
processes and systems to strengthen information security and enhance the Group's digital
operational resilience.
In response to the rapidly growing cyber threat landscape, financial investments in advanced
information security and digital operational resilience solutions are increasing annually at a rate
of over 30%. One-third of the annual budget is allocated to cyber threat protection services and
ICT system security, with the remaining two-thirds dedicated to cyber resilience software
solutions.
11.5
Obtained assurances (internal and external)
In November 2023, the Company's Internal Audit Department prepared an annual work plan,
which was adopted by the Management Board with the consent of the Supervisory Board. The
plan is based on an audit risk assessment, strategic orientations and work guidelines. It identifies
the need to increase the frequency of internal audits in areas with major risks identified,
including ICT, which are regularly audited. As part of its mandate, the Internal Audit Department
regularly monitors the implementation of issued recommendations and provides periodic
reports to the Management Board, the Audit Committee and the Supervisory Board.
In the audits conducted in 2024 at the Company and selected Group companies, the focus was
primarily on the management of ICT process areas. In this context, the audits also examined the
management of cyber risks, including the implementation of recommendations related to cyber
security, remote work security, and cloud services and data warehouse management.
211
In 2024, the Company underwent an external audit of its information security system against
the latest version of ISO 27001:2022 and renewed its certification. It also conducted external
security reviews (pentests), which did not reveal any increased risks regarding information
security. During the implementation of the DORA project in 2024, the Company additionally
commissioned an independent external review of compliance with DORA requirements.
212
213
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 2024, 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 2024 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, 11 March 2025
214
Independent auditor's report
215
216
217
218
219
220
221
222
223
1.
Financial statements
149
1.1
Statement of financial position
in EUR
Triglav Group
Zavarovalnica Triglav
Notes
31 Dec 2024
31 Dec 2023
31 Dec 2024
31 Dec 2023
adjusted*
1 Jan 2023
adjusted*
ASSETS
Property, plant and equipment
3.7.1
Investment property
3.7.2
Right-of-use assets
3.7.3
Intangible assets and goodwill
3.7.4
Deferred tax assets
3.7.5
Investments in subsidiaries
Investments in associates and jointly controlled companies accounted
for using the equity method
3.3
Financial investments
3.4
– at fair value through other comprehensive income
– at amortised cost
– at fair value through profit or loss
Financial contract assets
3.5
– investments at amortised cost
– investments at fair value through profit or loss
– receivables from financial contracts
– cash from financial contracts
Insurance contract assets
3.1
Reinsurance contract assets
3.2
Non-current assets held for sale
3.7.6
Current corporate income tax assets
3.7.16
Other receivables
3.7.7
Cash and cash equivalents
3.7.8
Other assets
3.7.9
EQUITY AND LIABILITIES
Equity
3.7.10
Controlling interests
– share capital
– share premium
– treasury share reserves
– treasury share
-364,680
-364,680
– other reserves from profit
– accumulated other comprehensive income
-31,253,300
-37,415,983
-29,518,795
-30,153,273
-51,793,307
– retained earnings from previous years
– net profit or loss for the year
-7,192,538
-4,782,244
-53,859,958
– translation differences
-3,074,712
-3,194,650
Non-controlling interests
Subordinated liabilities
3.7.11
Deferred tax liabilities
3.7.5
Financial contract liabilities
3.5
Insurance contract liabilities
3.1
Reinsurance contract liabilities
3.2
Provisions
3.7.12
Lease liabilities
3.7.3
Other financial liabilities
Current corporate income tax liabilities
3.7.16
Other liabilities
3.7.13
*The figures for the comparative period are adjusted for the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d., as described in Section 2.7.
149
The notes in Section 2, 3 and 4 are an integral part of the financial statements.
224
1.2
Statement of profit or loss
in EUR
Triglav Group
Zavarovalnica Triglav
Notes
2024
2023
adjusted*
2024
2023
adjusted*
Insurance service result
– insurance income
3.1
– insurance service expenses
3.1
-997,300,760
-1,107,300,071
-651,239,341
-772,527,441
– net reinsurance service result
3.2
-140,930,917
-130,657,099
Investment result
3.4
– interest income calculated using the effective interest method
– dividend income
– net gains and losses on financial investments
– net impairment and reversal of impairment of financial investments
– other effects of investing activities
-2,670,852
Financial result from insurance contracts
-118,428,159
-69,597,122
-110,015,438
-62,796,223
– financial result from insurance contracts
3.1
-124,991,075
-69,662,641
-115,748,853
-62,933,739
– financial result from reinsurance contracts
3.2
Income from asset management
3.7.14
Non-attributable operating expenses
3.6
-100,950,971
-91,124,574
-43,730,392
-39,651,436
Net other operating income and expenses
3.7.14
-8,138,587
-15,861,691
-46,756
Net other financial income and expenses
3.7.15
-7,300,418
-3,680,153
-7,006,800
-2,799,969
Net impairment and reversal of impairment of non-financial assets
3.3
-66,398
-2,515,516
-66,111
-2,502,745
Gains and losses on investments in associates
3.7.16
Net other income and expenses
EARNINGS BEFORE TAX FROM CONTINUING OPERATIONS
EARNINGS BEFORE TAX FROM DISCONTINUED OPERATIONS
-27,775,868
-27,775,868
Tax expense from continuing operations
3.7.17
-27,624,088
-10,298,619
-19,352,563
-7,046,775
Tax expense from discontinued operations
3.7.17
NET EARNINGS FOR THE PERIOD FROM CONTINUING OPERATIONS
NET EARNINGS FOR THE PERIOD FROM DISCONTINUED OPERATIONS
-22,272,491
-22,272,491
TOTAL NET EARNINGS FOR THE PERIOD
Net earnings per share (basic and diluted)
150
– controlling interests
– non-controlling interests
**The figures for the comparative period were adjusted to reflect the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. and the reclassification of income and
expenses from discontinued operations into the separate item "net earnings for the period from discontinued operations". These two changes are further detailed in Sections
2.7 and 3.7.6.
150
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.
225
1.3
Statement of other comprehensive income
in EUR
Triglav Group
Zavarovalnica Triglav
2024
2023
adjusted*
2024
2023
adjusted*
TOTAL NET EARNINGS FOR THE PERIOD
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX FROM
CONTINUING OPERATIONS
Items that will not be reclassified to profit or loss in future periods
– effects of equity instruments
– actuarial gains and losses related to employee benefits
-144,838
-1,522,053
-31,908
-1,575,443
– other gains and losses that will not be reclassified to profit or loss
– tax on items that will not be reclassified to profit or loss
-197,358
-175,828
Items that may be reclassified to profit or loss in future periods
– effects of insurance contracts
-25,712,354
-48,987,812
-20,285,725
-37,170,823
– effects of reinsurance contracts
– effects of debt instruments
– other gains and losses that may be reclassified to profit or loss
– tax on items that may be reclassified to profit or loss
-1,136,174
-4,366,840
-4,476
-4,450,986
Translation differences
-46,000
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX FROM
DISCONTINUED OPERATIONS
-2,979
-2,979
TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX
Controlling interests
Non-controlling interests
*The figures for the comparative period were adjusted to reflect the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. and the reclassification of income and
expenses from discontinued operations into the separate item "net earnings for the period from discontinued operations". These two changes are further detailed in Sections
2.7 and 3.7.6.
226
1.4
Statement of changes in equity
in EUR
Reserves from profit
Triglav Group
Share capital
Share
premium
Contingency
reserves
Legal and
statutory
reserves
Treasury
share
reserves
Treasury
shares
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 2024
-364,680
-37,415,983
-7,192,538
-3,194,650
Comprehensive income for the period after
tax
– net profit
– other comprehensive income
-8,654
Dividend payment
-39,742,259
-39,742,259
-1,704
-39,743,963
Allocation of last year's net profit to
retained earnings
-7,192,538
Allocation of net profit to reserves from
profit
-55,844,921
Change in Group
-42,510
-42,510
As at 31 December 2024
-364,680
-31,253,300
-3,074,712
in EUR
Reserves from profit
Triglav Group
Share capital
Share
premium
Contingency
reserves
Legal and
statutory
reserves
Treasury
share
reserves
Treasury
shares
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
-364,680
-60,591,408
-67,037,486
-3,174,588
Comprehensive income for the period after
tax
-20,062
– net profit
– other comprehensive income
-20,062
-74,185
Dividend payment
-56,775,954
-56,775,954
-1,135
-56,777,089
Allocation of last year's net profit to
retained earnings
-67,037,485
Allocation of net profit to reserves from
profit
-23,269,022
Change in Group
-43,263
-25,357
As at 31 December 2023
-364,680
-37,415,983
-7,192,538
-3,194,650
Notes to the changes in Group's equity are included in Section 3.7.10.
227
Notes to the changes in Company's equity are included in Section 3.7.10.
in EUR
Reserves from profit
Zavarovalnica Triglav
Share capital
Share premium
Legal and statutory
reserves
Other reserves from
profit
Accumulated other
comprehensive
income
Retained earnings
Net profit or loss
Total
As at 1 January 2024
-30,153,273
-4,782,244
Comprehensive income for the period after tax
– net profit
– other comprehensive income
Dividend payment
-39,786,509
-39,786,509
Allocation of last year's net profit to retained earnings
-4,782,244
Allocation of net profit to reserves from profit
-49,000,000
As at 31 December 2024
-29,518,795
in EUR
Reserves from profit
Zavarovalnica Triglav
Share capital
Share 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 before the merger
-46,309,356
-51,274,590
Merger effect
-5,483,951
-2,585,368
As at 1 January 2023 after the merger
-51,793,307
-53,859,958
Comprehensive income for the period after tax
– net profit
– other comprehensive income
Dividend payment
-56,837,870
-56,837,870
Allocation of last year's net profit to retained earnings
-53,859,958
Allocation of net profit to reserves from profit
-19,000,000
As at 31 December 2023
-30,153,273
-4,782,244
228
Cash flow statement
in EUR
Triglav Group
Zavarovalnica Triglav
2024
2023 adjusted *
2024
2023 adjusted *
A.
CASH FLOWS FROM OPERATING ACTIVITIES
a.
Net profit or loss
b.
Adjustments:
– depreciation
– financial income/expenses from financial investments
-164,444,166
-89,227,649
-134,831,160
-85,933,665
– income from investment property
-7,443,381
-7,441,237
-6,479,919
-6,195,418
– gains/losses on the sale of property, plant and equipment,
intangible assets and investment property
-2,275,592
-889,656
-1,813,705
-635,138
– revaluation operating income/expenses
– other financial expenses
– change in other provisions
-8,075,224
-3,616,615
– corporate income tax excluding the change in deferred taxes
c.
Net income before changes in net operating assets (a+b)
-23,154,278
-6,728,469
-26,434,863
Net change in insurance and reinsurance contracts
Change in other receivables and assets
-5,446,617
-3,608,301
Change in other liabilities
-54,907,735
-5,871,321
-33,297,253
Paid corporate income tax
-7,401,043
-29,461,595
-1,379,778
-29,086,293
d.
Changes in net operating assets – operating items of the
statement of financial position
e.
Net cash flow from operating activities (c+d)
B.
CASH FLOWS FROM INVESTING ACTIVITIES
a.
Cash inflows from investing activities
Cash inflows from interest from investing activities
Cash inflows from dividends and profit sharing
Cash inflows from investment property
Cash inflows from the disposal of property, plant and equipment
Cash inflows from the disposal of financial investments
– cash outflows for the disposal of subsidiaries or other
companies
– other cash outflows for the disposal of financial investments
b.
Cash outflows from investing activities
-1,384,075,332
-667,224,401
-962,656,243
-422,349,967
Cash outflows for the acquisition of intangible assets
-12,976,699
-13,920,475
-8,715,223
-10,270,061
Cash outflows for the acquisition of property, plant and
equipment
-9,421,419
-7,475,198
-4,438,495
-5,035,728
Cash outflows for the purchase of investment property
-2,644,825
-1,915,560
-2,015,578
-1,622,882
Cash outflows for the acquisition of financial investments
-1,359,032,389
-643,913,168
-947,486,947
-405,421,296
– cash outflows for investments in subsidiaries and other
companies
-20,342,245
-25,352
-21,342,245
-13,992,500
– other cash outflows for the acquisition of financial
investments
-1,338,690,144
-643,887,816
-926,144,702
-391,428,796
c.
Net cash flow from investing activities (a+b)
-211,023,882
-169,440,795
C.
CASH FLOWS FROM FINANCING ACTIVITIES
a.
Cash inflows from financing activities
Cash inflows from long-term loans and bond issues
b.
Cash outflows for financing activities
-46,556,341
-63,489,354
-43,441,309
-60,692,909
Cash outflows for interest paid
-2,908,642
-2,963,524
-2,355,890
-2,185,025
Cash outflows for payments of financial liabilities
-3,903,736
-3,748,740
-1,298,910
-1,670,014
Cash outflows for dividend payments and other participation in
profits
-39,743,963
-56,777,090
-39,786,509
-56,837,870
c.
Total cash flows from financing activities (a+b)
-63,489,354
-60,692,909
D.
Opening balance of cash and cash equivalents
E.
Net cash flow for the period from continuing operations
-15,310,597
-13,582,031
F.
Net cash flow for the period from discontinuing operations
-158,991
-679,952
-158,991
-679,952
G.
Closing balance of cash and cash equivalents
*The figures for the comparative period were adjusted to reflect the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. and the reclassification of income and
expenses from discontinued operations into the separate item "net earnings for the period from discontinued operations". These two changes are further detailed in Sections
2.7 and 3.7.6.
229
Notes to the financial statements
Profile of Zavarovalnica Triglav and Triglav Group
2.1.1
About Zavarovalnica Triglav
company) is a public limited company, with its head office at Miklošičeva 19 in Ljubljana,
Triglav Group is the leading insurance and financial group in Slovenia and the Adria region as
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 2024 hold 34.45% and 28.09% of the
share capital respectively.
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 2024:
▪
Skupina kritnih skladov PDPZ (Triglav SVPI Guarantee Fund Group) (registration 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–01/21-3, PN–ZT–03/21-3 and
PN–ZT–05/21-3 and for individual supplemental voluntary pension insurance with the
designations PN–ZT–02/21-3, PN–ZT–04/21-3 and PN–ZT–06/21-3 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 Company manages the assets of Skupina kritnih skladov PDPZ separately from the assets of
other guarantee funds and from the Company's other assets. These assets belong to the
policyholders and can only be utilised by the Company to fulfill the contractual obligations
related to supplemental voluntary pension insurance. The value of these assets and liabilities is
presented in detail in Section 3.5.
230
The unit-linked assets of the guarantee fund are also managed separately from the Company's
assets. The value of these assets and their returns are presented in detail in Section 3.4.
The manager of the Triglav PDPZ – zmerni and
Triglav PDPZ – drzni
guarantee funds is Triglav
Skladi d.o.o., while the rest of the aforementioned guarantee funds are managed by
Zavarovalnica Triglav. Custodial services are provided by the custodial bank.
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 2024 were:
▪
Andrej Andoljšek, Chairman,
▪
Tim Umberger, Vice Chairman,
▪
Barbara Nose, Member,
▪
Tomaž Benčina, Member,
▪
Monica Cramer Manhem, Member,
▪
Rok Ponikvar, 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 2024, 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
31 December 2024 on 11 March 2025. The annual report is published on the Company’s website
231
Data on employees
In 2024, the Group employed an average of 5,088 employees (2023: 5,190), of which 2,197 were
employees of Zavarovalnica Triglav (2023: 2,315).
As at 31 December 2024, the Group employed 5,204 employees (31 December 2023: 5,318), of
which 2,223 were employees of Zavarovalnica Triglav (31 December 2023: 2,349).
The number of employees within the Group and at Zavarovalnica Triglav based on their level of
education is shown in the table below.
Triglav Group | Zavarovalnica Triglav | |||
Education level | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
2–5 Upper secondary or general education or below | 2,050 | 2,181 | 701 | 768 |
6/1 First-cycle education/professional higher education | 536 | 521 | 335 | 365 |
6/2 First-cycle educationć98 | 779 | 824 | 489 | 503 |
7 Second-cycle education | 1,603 | 1,552 | 598 | 601 |
8/1 Third-cycle education/master's degree in science | 215 | 218 | 92 | 103 |
8/2 Third-cycle education/doctoral degree in science | 21 | 22 | 8 | 9 |
TOTAL | 5,204 | 5,318 | 2,223 | 2,349 |
Number of employees (full time equivalent) | 5,088 | 5,190 | 2,197 | 2,315 |
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.
232
2.1.4.1
Triglav Group subsidiaries
151
TAX RATE (in %) | ACTIVITY | EQUITY STAKE (in %) | SHARE OF VOTING RIGHTS (in %) | ||||
COMPANY | ADDRESS | 2024 | 2023 | 2024 | 2023 | ||
Pozavarovalnica Triglav RE, d.d. | Miklošičeva cesta 19, Ljubljana, Slovenija | 22 | Reinsurance | 100 | 100 | 100 | 100 |
Triglav Osiguranje, d.d., Zagreb | Antuna Heinza 4, Zagreb, Hrvaška | 18 | Insurance | 100 | 100 | 100 | 100 |
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 | 100 | 100 | 100 |
Triglav Osiguranje, a.d., Banja Luka | Ulica Prvog krajiškog korpusa 29, Banja Luka, Bosna in Hercegovina | 10 | Insurance | 97.78 | 97.78 | 100 | 100 |
Triglav Osiguruvanje, a.d., Skopje | Bulevar 8-mi Septemvri br. 16, Skopje, Severna Makedonija | 10 | Insurance | 82.01 | 82.01 | 82.01 | 82.01 |
Triglav Osiguruvanje Život, a.d., Skopje | Bulevar 8-mi Septemvri br. 18, Skopje, Severna Makedonija | 10 | Insurance | 97.43 | 97.43 | 97.43 | 97.43 |
Triglav penzisko društvo, a.d., Skopje | Bulevar 8-mi septemvri br. 18, Skopje, Severna Makedonija | 10 | Fund management | 100 | 100 | 100 | 100 |
Triglav, pokojninska družba, d.d. | Dunajska cesta 22, Ljubljana, Slovenija | 22 | Fund management | 100 | 100 | 100 | 100 |
Triglav INT, d.o.o. | Dunajska cesta 22, Ljubljana, Slovenija | 22 | Holding company | 100 | 100 | 100 | 100 |
Triglav international, d.o.o., Beograd | Milutina Milankovića 7a, Beograd, Srbija | 15 | Holding company | 100 | - | 100 | - |
Triglav Skladi, d.o.o. | Dunajska cesta 20, Ljubljana, Slovenija | 22 | Fund management | 100 | 100 | 100 | 100 |
Triglav Avtoservis, d.o.o. | Verovškova 60b, Ljubljana, Slovenija | 22 | Maintenance and repair of motor vehicles | 100 | 100 | 100 | 100 |
Triglav Svetovanje, d.o.o. | Ljubljanska cesta 86, Domžale, Slovenija | 22 | Insurance agency | 100 | 100 | 100 | 100 |
Triglav, Upravljanje nepremičnin, d.o.o. | Dunajska cesta 22, Ljubljana, Slovenija | 22 | Real estate management | 100 | 100 | 100 | 100 |
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, u likvidaciji | Sarajevska cesta 60, Zagreb, Hrvaška | 18 | Insurance | 100 | 100 | 100 | 100 |
Triglav Savetovanje, d.o.o., Beograd, u likvidaciji | Zelengorska 1g, Beograd, Srbija | 15 | Insurance agency | 100 | 100 | 100 | 100 |
Autocentar BH, d.o.o., Sarajevo | 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., Sarajevo | Bulevar Meše Selimovića 12, 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 | 100 | 100 | 100 |
Triglav upravljanje nekretninama, d.o.o., Podgorica | Džordža Vašingtona 44, Podgorica, Črna gora | 9-15 | Real estate management | 100 | 100 | 100 | 100 |
Triglav upravljanje nekretninama, d.o.o., Sarajevo | Branilaca Sarajeva 45, Sarajevo, Bosna in Hercegovina | 10 | Real estate management | 100 | 100 | 100 | 100 |
Triglav upravuvanje so nedvižen imot DOOEL, Skopje | Dame Gruev br. 8, Skopje, Severna Makedonija | 10 | Real estate management | 100 | 100 | 100 | 100 |
Triglav Fondovi, d.o.o., Sarajevo | Ulica Mehmed-paše Sokolovića br. 15, Sarajevo, Bosna in Hercegovina | 10 | Fund management | 63.58 | 62.54 | 63.20 | 62.54 |
Triglav zdravje asistenca, d.o.o., Ljubljana | Dunajska cesta 22, Ljubljana, Slovenija | 22 | Other human health activities | 100 | 100 | 100 | 100 |
Eskulap, d.o.o., Ljubljana | Redelonghijeva ulica 12, 1000 Ljubljana | 22 | Other human health activities | 100 | - | 100 | - |
Zavod Vse bo v redu, Ljubljana | Miklošičeva cesta 19, Ljubljana, Slovenija | 22 | Corporate Social Responsibility Institute | 100 | 100 | 100 | 100 |
151
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.
233
2.1.4.2
Condensed financial statements of the Triglav Group companies
in EUR | ||||||||||
ASSETS | LIABILITIES | EQUITY | TOTAL INCOME | NET PROFIT/LOSS | ||||||
COMPANY | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Pozavarovalnica Triglav Re, d.d., Ljubljana | 400,898,364 | 410,277,992 | 287,729,355 | 311,869,723 | 113,169,009 | 98,408,269 | 261,913,759 | 239,043,151 | 13,310,276 | 5,063,016 |
Triglav Osiguranje, d.d., Zagreb | 195,912,937 | 190,787,223 | 154,028,406 | 148,449,013 | 41,884,531 | 42,338,210 | 81,707,111 | 84,943,388 | -1,391,860 | -3,858,646 |
Triglav Osiguranje, d.d., Sarajevo | 93,309,597 | 83,912,383 | 66,302,049 | 57,836,201 | 27,007,548 | 26,076,182 | 31,496,604 | 27,895,911 | 1,924,368 | 1,118,581 |
Lovćen Osiguranje, a.d., Podgorica | 56,803,287 | 52,294,433 | 33,042,170 | 31,236,313 | 23,761,117 | 21,058,120 | 39,590,395 | 36,621,259 | 1,710,059 | 2,347,486 |
Lovćen životna osiguranja, a.d., Podgorica | 11,464,936 | 9,446,837 | 5,877,503 | 5,258,146 | 5,587,433 | 4,188,691 | 5,772,200 | 3,775,689 | 1,187,061 | -513,512 |
Triglav Osiguranje, a.d.o., Beograd | 111,008,081 | 88,533,209 | 76,726,294 | 58,802,788 | 34,281,787 | 29,730,421 | 100,474,435 | 87,703,848 | 3,364,382 | 1,799,380 |
Triglav Osiguranje, a.d., Banja Luka | 14,268,271 | 14,680,050 | 8,837,858 | 9,757,036 | 5,430,413 | 4,923,014 | 7,321,704 | 7,479,431 | 411,045 | 174,676 |
Triglav Osiguruvanje, a.d., Skopje | 44,619,019 | 42,735,186 | 28,380,763 | 28,093,194 | 16,238,256 | 14,641,992 | 25,100,486 | 24,282,618 | 1,595,677 | 884,217 |
Triglav Osiguruvanje Život, a.d., Skopje | 19,586,764 | 14,700,851 | 12,553,004 | 8,131,485 | 7,033,760 | 6,569,366 | 2,912,250 | 2,892,862 | 369,491 | 88,221 |
Triglav penzisko društvo, a.d., Skopje | 4,815,634 | 3,938,167 | 327,193 | 192,283 | 4,488,441 | 3,745,884 | 1,167,439 | 817,338 | -275,526 | -426,828 |
Triglav, pokojninska družba, d.d., Ljubljana | 535,422,717 | 482,831,854 | 467,329,985 | 419,510,811 | 68,092,732 | 63,321,043 | 6,823,237 | 8,185,363 | 3,803,677 | 4,599,439 |
Triglav INT, d.o.o., Ljubljana | 77,855,834 | 78,123,520 | 26,832 | 41,280 | 77,829,003 | 78,082,240 | 1,013 | 0 | -253,237 | -274,458 |
Triglav international, d.o.o., Beograd | 492,923 | - | 12,826 | - | 480,097 | - | 0 | - | -32,882 | - |
Triglav Skladi, d.o.o., Ljubljana | 72,589,314 | 61,691,354 | 8,299,299 | 8,213,384 | 64,290,016 | 53,477,970 | 40,927,471 | 32,001,410 | 10,793,372 | 8,538,042 |
Triglav Avtoservis, d.o.o., Ljubljana | 1,665,896 | 1,752,461 | 1,387,153 | 1,570,356 | 278,743 | 182,105 | 4,150,687 | 4,352,568 | 103,061 | 35,097 |
Triglav Svetovanje, d.o.o., Domžale | 2,245,456 | 2,303,025 | 1,650,017 | 1,743,216 | 595,439 | 559,809 | 6,724,721 | 6,598,254 | 46,836 | 133,639 |
Triglav, Upravljanje nepremičnin, d.o.o., Ljubljana | 28,753,471 | 29,406,172 | 2,920,908 | 2,585,146 | 25,832,563 | 26,821,026 | 4,327,784 | 4,718,872 | 229,021 | 1,214,903 |
Triglav Savjetovanje, d.o.o., Sarajevo | 212,519 | 259,436 | 180,623 | 239,082 | 31,896 | 20,354 | 698,266 | 659,638 | 11,542 | 10,445 |
Triglav Savjetovanje, d.o.o., Zagreb, u likvidaciji | 81,498 | 99,470 | 0 | 15,130 | 81,498 | 84,340 | 20,945 | 377,373 | -2,841 | -67,811 |
Triglav Savetovanje, d.o.o., Beograd, u likvidaciji | 112,863 | 85,345 | 5,666 | 56,631 | 107,197 | 28,714 | 546,252 | 656,700 | 78,332 | -4,296 |
Autocentar BH, d.o.o., Sarajevo | 2,862,831 | 2,833,784 | 752,296 | 769,430 | 2,110,535 | 2,064,354 | 1,800,280 | 1,758,383 | 97,310 | 71,795 |
Sarajevostan, d.o.o., Sarajevo | 1,965,628 | 1,891,436 | 665,924 | 634,805 | 1,299,704 | 1,256,631 | 2,016,618 | 2,006,984 | 78,285 | 75,198 |
Lovćen auto, d.o.o., Podgorica | 5,585,210 | 5,009,689 | 1,829,395 | 1,585,356 | 3,755,816 | 3,424,333 | 3,175,403 | 2,433,506 | 331,483 | 38,993 |
Triglav upravljanje nekretninama, d.o.o., Zagreb | 498,955 | 523,837 | 5,698 | 731 | 493,257 | 523,106 | 29,463 | 101,531 | -29,849 | 67,074 |
Triglav upravljanje nekretninama, d.o.o., Podgorica | 507,985 | 619,201 | 5,417 | 80,022 | 502,569 | 539,179 | 27,657 | 26,861 | -36,610 | -57,408 |
Triglav upravljanje nekretninama, d.o.o., Sarajevo | 1,219,024 | 1,255,589 | 49,241 | 300,675 | 1,169,783 | 954,914 | 335,820 | 77,346 | 214,869 | -30,270 |
TRIGLAV upravuvanje so nedvižen imot DOOEL, Skopje | 584,698 | 3,194 | 2,994 | 0 | 581,704 | 3,194 | 5,519 | 0 | -37,371 | -1,800 |
Triglav Fondovi, d.o.o., Sarajevo | 4,544,849 | 4,156,529 | 140,062 | 72,903 | 4,404,787 | 4,083,626 | 163,314 | 99,589 | 363,664 | -77,658 |
Triglav zdravje asistenca, d.o.o., Ljubljana | 4,130,901 | 3,714,997 | 1,584,448 | 1,169,220 | 2,546,453 | 2,545,777 | 3,685,663 | 1,069,491 | 676 | 47,777 |
Eskulap, d.o.o., Ljubljana | 853,731 | - | 533,493 | - | 320,238 | - | 58,533 | - | -129,415 | - |
Zavod Vse bo v redu | 157,016 | 240,727 | 14,191 | 10,593 | 142,825 | 230,135 | 113,712 | 182,256 | -87,310 | 131,020 |
The table shows the data before the elimination of intercompany transactions and other consolidation adjustments.
234
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 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
CONDENSED BALANCE SHEET | ||||
Current assets | 1,392,873 | 2,549,100 | 283,317 | 245,596 |
Current liabilities | 1,907,469 | 2,018,497 | 140,062 | 72,823 |
Net current assets/liabilities | -514,596 | 530,603 | 143,255 | 172,773 |
Non-current assets | 43,226,146 | 40,186,086 | 4,261,532 | 3,910,933 |
Non-current liabilities | 26,473,294 | 26,074,697 | 0 | 80 |
Net non-current assets/liabilities | 16,752,852 | 14,111,389 | 4,261,532 | 3,910,853 |
Net assets | 16,238,256 | 14,641,992 | 4,404,787 | 4,083,626 |
2024 | 2023 | 2024 | 2023 | |
CONDENSED COMPREHENSIVE INCOME | ||||
Net profit or loss for the year | 1,595,677 | 884,217 | 363,664 | -77,658 |
Other comprehensive income | 589 | -136,212 | 0 | 0 |
Total comprehensive income | 1,596,266 | 748,005 | 363,664 | -77,658 |
NON-CONTROLLING INTEREST IN CAPITAL (in %) | VOTING RIGHTS OF NON- CONTROLLING INTERESTS (in %) | NET PROFIT OR LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST HOLDERS (in EUR) | RETAINED EARNINGS ATTRIBUTABLE TO NON- CONTROLLING INTEREST HOLDERS (in EUR) | |||||
COMPANY | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Triglav Osiguranje, d.d., Sarajevo | 2.22 | 2.22 | 1.13 | 1.13 | 42,721 | 26,536 | 435,637 | 414,294 |
Triglav Osiguruvanje, a.d., Skopje | 17.99 | 17.99 | 17.99 | 17.99 | 287,062 | 159,072 | 1,694,049 | 1,407,360 |
Lovćen Osiguranje, a.d., Podgorica | 0.93 | 0.93 | 0.93 | 0.93 | 15,904 | 21,832 | 597,214 | 572,076 |
Lovćen životna osiguranja, a.d., Podgorica | 0.93 | 0.93 | 0.93 | 0.93 | 11,040 | -4,776 | 98,460 | 85,452 |
Triglav Osiguranje, a.d., Banja Luka | 2.22 | 2.22 | 0.00 | 0.00 | 9,125 | 3,878 | 15,100 | 3,836 |
Triglav Savjetovanje, d.o.o., Sarajevo | 2.22 | 2.22 | 1.13 | 1.13 | 256 | 232 | -18,975 | -19,230 |
Autocentar BH, d.o.o., Sarajevo | 2.22 | 2.22 | 1.13 | 1.13 | 2,160 | 1,594 | -141,626 | -142,651 |
Lovćen auto, d.o.o., Podgorica | 0.93 | 0.93 | 0.93 | 0.93 | 3,083 | 363 | -395,050 | -398,132 |
Triglav Osiguruvanje Život, a.d., Skopje | 2.57 | 2.57 | 2.57 | 2.57 | 9,499 | 2,268 | 6,095 | -5,769 |
Sarajevostan, d.o.o., Sarajevo | 9.05 | 9.05 | 8.03 | 8.03 | 7,081 | 6,801 | 241,188 | 237,293 |
Triglav Fondovi, d.o.o., Sarajevo | 36.42 | 37.46 | 36.80 | 37.46 | 136,229 | -29,090 | 1,623,453 | 1,529,724 |
TOTAL | 524,160 | 188,710 | 4,155,545 | 3,684,253 | ||||
235
2.1.4.4
Associates and joint ventures of the Group and the Company
COMPANY | ADDRESS | TAX RATE (in%) | ACTIVITY |
| KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH | Tölzer Str. 15 82031, Grünwald, Nemčija | 16 | Real estate management |
Triglavko, d.o.o., Ljubljana | Ulica XXX. divizije 23, Nova Gorica, Slovenija | 22 | Insurance agency |
| TRIGAL, upravljanje naložb in svetovanje, d.o.o., Ljubljana | Dunajska cesta 22, Ljubljana, Slovenija | 22 | 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., Bled | Pod Skalo 4, Bled, Slovenija | 22 | Health |
Alifenet, d.o.o., Ljubljana | Dunajska cesta 22, Ljubljana, Slovenija | 22 | Fund management |
| Triglav Group | Zavarovalnica Triglav | |||||||||||
SHARE IN CAPITAL (in %) | VOTING RIGHTS (in %) | INVESTMENT VALUE (in EUR) | SHARE in CAPITAL (in %) | VOTING RIGHTS (in %) | INVESTMENT VALUE (in EUR) | |||||||
COMPANY | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Nama, d.d. | 0.00 | 39.15 | 0.00 | 39.15 | 0 | 4,648,981 | 0.00 | 39.07 | 0.00 | 39.07 | 0 | 4,648,981 |
KATERA Beteiligungs- Verwaltungsgesellschaft P11 mbH | 24.90 | - | 24.90 | - | 20,394,242 | - | 24.90 | - | 24.90 | - | 20,394,242 | - |
Triglavko, d.o.o. | 38.47 | 38.47 | 38.47 | 38.47 | 4,519 | 18,509 | 38.47 | 38.47 | 38.47 | 38.47 | 4,519 | 18,509 |
TRIGAL, d.o.o. | 49.90 | 49.90 | 49.90 | 49.90 | 11,319,552 | 10,925,240 | 49.90 | 49.90 | 49.90 | 49.90 | 11,319,552 | 10,925,240 |
Društvo za upravljanje EDPF, a.d. | 34.00 | 34.00 | 34.00 | 34.00 | 561,985 | 489,221 | 0.00 | 0.00 | 0.00 | 0.00 | 0 | 0 |
Diagnostični center Bled, d.o.o. | 40.10 | 40.10 | 40.10 | 40.10 | 23,341,075 | 21,560,000 | 40.10 | 40.10 | 40.10 | 40.10 | 23,341,075 | 21,560,000 |
Alifenet, d.o.o. | 23.58 | 23.58 | 23.58 | 23.58 | 0 | 66,111 | 23.58 | 23.58 | 23.58 | 23.58 | 0 | 66,111 |
TOTAL | 55,621,373 | 37,708,062 | 55,059,388 | 37,218,841 | ||||||||
in EUR | ||||||||||
ASSETS | LIABILITIES | EQUITY | REVENUES | PROFIT/LOSS | ||||||
COMPANY | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Nama, d.d. | - | 13,526,992 | - | 1,904,376 | - | 11,622,617 | - | 11,850,849 | - | 475,421 |
KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH | 24,763,485 | - | 45,321 | - | 24,718,164 | - | 346,648 | - | 182,352 | - |
Triglavko, d.o.o. | 150,266 | 133,878 | 100,704 | 47,948 | 49,562 | 85,930 | 354,437 | 369,996 | -36,368 | 2,609 |
TRIGAL, d.o.o. | 24,609,552 | 23,869,050 | 1,172,049 | 1,116,764 | 23,437,503 | 22,752,286 | 2,073,633 | 1,606,473 | 683,724 | 91,341 |
Društvo za upravljanje EDPF, a.d. | 1,681,285 | 1,473,860 | 45,623 | 52,182 | 1,635,661 | 1,421,679 | 582,207 | 472,669 | 214,010 | 142,863 |
Diagnostični center Bled, d.o.o. | 55,109,003 | 53,315,370 | 18,753,609 | 20,527,899 | 36,355,394 | 32,787,471 | 38,589,636 | 36,383,549 | 3,562,149 | 3,925,069 |
236
Presented below are the condensed balance sheet and comprehensive income for material investments in associates.
in EUR | ||||||||
Diagnostični center Bled d.o.o. | KATERA, mbh | TRIGAL, d.o.o. | Nama, d.d. | |||||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
CONDENSED BALANCE SHEET | ||||||||
Current assets | 9,518,726 | 7,704,159 | 395,828 | 0 | 4,613,908 | 2,945,650 | 0 | 7,263,214 |
Current liabilities | 6,978,668 | 7,764,634 | 45,321 | 0 | 361,776 | 344,565 | 0 | 1,467,430 |
Net current assets/liabilities | 2,540,058 | -60,475 | 350,507 | 0 | 4,252,133 | 2,601,085 | 0 | 5,795,784 |
Non-current assets | 45,590,277 | 45,611,212 | 24,367,656 | 0 | 19,995,644 | 20,923,400 | 0 | 6,263,778 |
Non-current liabilities | 11,774,942 | 12,763,266 | 0 | 0 | 810,274 | 772,199 | 0 | 436,946 |
Net non-current assets/liabilities | 33,815,335 | 32,847,946 | 24,367,656 | 0 | 19,185,370 | 20,151,201 | 0 | 5,826,832 |
Net assets | 36,355,393 | 32,787,471 | 24,718,163 | 0 | 23,437,503 | 22,752,286 | 0 | 11,622,616 |
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
CONDENSED COMPREHENSIVE INCOME | ||||||||
Net profit or loss for the year | 3,562,149 | 3,925,069 | 182,352 | 0 | 683,724 | 91,341 | 0 | 475,421 |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 73,644 |
Total comprehensive income | 3,562,149 | 3,925,069 | 182,352 | 0 | 683,724 | 91,341 | 0 | 549,065 |
Dividends from associates for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 63,345 |
237
2.1.4.5
Changes in the structure of the Triglav Group in 2024
Sale of the participating interest in Nama d.d.
Zavarovalnica Triglav d.d., sold its 39.07% participating interest in Nama d.d., generating gains
on disposal of EUR 4,666,520 in the separate and consolidated financial statements.
Purchase of a participating interest in KATERA Beteiligungs-Verwaltungsgesellschaft P11 mbH
Zavarovalnica Triglav d.d. acquired a 24.9% participating interest in KATERA Beteiligungs-
Verwaltungsgesellschaft P11 mbH. The company is accounted for using the equity method in
both the separate and consolidated financial statements.
Capital increase of Triglav, upravuvanje so nedvižen imot DOOEL Skopje
Triglav, Upravljanje nepremičnin d.o.o., Ljubljana increased the capital of the subsidiary Triglav,
upravuvanje so nedvižen imot DOOEL Skopje, in the amount of MKD 37,927,736 or EUR 616,000.
The capital increase was raised through an in-cash contribution. Triglav, Upravljanje
nepremičnin d.o.o. remained a 100% owner of said company. The capital increase had no impact
on the Triglav Group's consolidated financial statements.
Purchase of a participating interest in Eskulap, družba za zdravstvene storitve d.o.o.
Triglav zdravje asistenca d.o.o. acquired a 100% participating interest in Eskulap, družba za
zdravstvene storitve d.o.o. In Q2 2024, the company was included for the first time in the Group's
consolidated financial statements under the full consolidation method. The first consolidation
had no significant impact on the Triglav 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 MKD 61,495,000 or EUR 1,000,000, thus remaining a 100% owner of said
company. The capital increase had no impact on the Triglav Group's consolidated financial
statements.
Merger of Triglav, Zdravstvena zavarovalnica d.d.
In October 2024, the procedure for the merger of the subsidiary Triglav, Zdravstvena
zavarovalnica d.d. with the parent company Zavarovalnica Triglav d.d. was completed. The
capital share of Triglav, Zdravstvena zavarovalnica d.d. in Triglav zdravje asistenca, družba za
zdravstveno dejavnost d.o.o. was transferred to the parent company Zavarovalnica Triglav d.d.
at the date of the merger. The effect of the merger and the change in ownership had no impact
on the Triglav Group's consolidated financial statements. The effects of the merger on
Zavarovalnica Triglav d.d.'s separate financial statements are presented in Section 2.7.
238
Establishment of Triglav INT d.o.o., Belgrade
Triglav INT, holdinška družba d.o.o., Ljubljana established the subsidiary Triglav INT d.o.o.,
Belgrade, in which it holds a 100% participating interest. The new company is included in the
Group's consolidated financial statements under the full consolidation method.
Investment funds not consolidated by the Triglav Group
The Group does not consolidate investments in investment funds at any time:
▪
It does not have direct control over the business decisions of the investment fund;
▪
The investment fund manager makes business decisions independently of the investor
and within the framework of the accepted offering document;
▪
The fund's offering document includes a clearly defined investment objective and strategy,
as well as a clearly defined type of investments and investment limits.
The table below shows the alternative investment funds held by the Group and the Company as
at 31 December 2024, which are not consolidated.
in EUR | ||||||
| Carrying amount as at 31 Dec 2024 | ||||||
| Zavarovalnica Triglav, d.d. | Triglav Osiguranje, d.d., Zagreb | Triglav, pokojninska družba, d.d., Ljubljana | Triglav Group | Net asset value (NAV) of the fund | Triglav Group's share of the fund's net asset value | |
Trigal Infrastructure Fund, Alternative Investment Fund | 2,401,440 | 0 | 0 | 2,401,440 | 2,401,500 | 100.0% |
Trigal Alternative Investment Fund,SICAV–RAIF S.C.A. | 14,401,604 | 1,278,952 | 2,043,006 | 17,723,562 | 48,654,700 | 36.4% |
Trigal RE Fund, Alternative Investment Fund | 3,823,875 | 0 | 3,823,763 | 7,647,638 | 15,295,000 | 50.0% |
TOTAL | 20,626,919 | 1,278,952 | 5,866,769 | 27,772,640 | ||
Bases for the preparation of financial statements
Statement of compliance
The Group’s consolidated financial statements and the Company’s separate financial
statements for the financial year ended 31 December 2024 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
in EUR | ||||||
| Carrying amount as at 31 Dec 2023 | ||||||
| Zavarovalnica Triglav, d.d. | Triglav Osiguranje, d.d., Zagreb | Triglav, pokojninska družba, d.d., Ljubljana | Triglav Group | Net asset value (NAV) of the fund | Triglav Group's share of the fund's net asset value | |
Trigal Alternative Investment Fund,SICAV–RAIF S.C.A. | 12,819,187 | 1,138,423 | 1,820,863 | 15,778,474 | 47,139,300 | 33.5% |
Trigal RE Fund, Alternative Investment Fund | 3,736,875 | 0 | 3,736,838 | 7,473,713 | 14,877,500 | 50.3% |
TOTAL | 16,556,062 | 1,138,423 | 5,557,700 | 23,252,186 | ||
239
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).
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.
Verifying the going concern assumption
Due to the unstable general economic and geopolitical situation, an updated analysis of the
Group's and the Company's ability to ensure business continuity in such circumstances was
conducted during the preparation of the financial statements.
Based on the analyses performed, it is confirmed that the Group remains financially stable,
adequately liquid and well-capitalised, and is able to ensure business continuity in the current
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.
240
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 cccts 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.
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 effect 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.
The financial statements of subsidiaries included in the consolidation must be prepared in
accordance with 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
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.
241
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.
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
Significant accounting policies
Significant changes in accounting policies
There were no changes in accounting policies in 2024 that had a material impact on the Group's
242
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.
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. The financial statements of
subsidiaries included in the consolidation must be prepared in accordance with uniform
accounting policies.
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.
243
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).
Inward reinsurance contracts are treated in the same way as insurance contracts.
2.5.2.2
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:
244
▪
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.
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.
2.5.2.3
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.
245
2.5.2.4
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
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.
246
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.
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.
2.5.2.5
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.
247
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.
248
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.
249
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.
250
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.
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.
251
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.
2.5.2.6
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.
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;
252
▪
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.
2.5.2.7
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.
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).
253
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.
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.
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.
254
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;
▪
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
255
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
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);
256
▪
incurred claims including fees and commissions and subrogations, which consist of expected
future cash flows arising from past service (LIC).
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
2.5.2.10
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).
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.
257
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
2.5.2.12
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.
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 insurance contracts 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
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.
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
258
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. 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
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,
259
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.
recognised in other comprehensive income are transferred to profit or loss or, in the case of
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.
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
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.
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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.
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;
261
▪
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.
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
to
non-attributable
receivables
from
insurance
operations,
Cash and cash equivalents
Cash includes balances with banks, cash in transit, cash on hand and cash equivalents such as
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
262
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).
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;
263
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
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.
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
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.
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.
264
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
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.
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
Business combinations and goodwill
For business combinations, the provisions of IFRS 3 Business Combinations and IFRS 10
Consolidated Financial Statements apply, except in the case of business combinations involving
entities under common control. In such cases, the carrying amount method, as permitted by IFRS
10 (paragraph B86), is applied.
Business combinations not under common control
The acquisition method is applied for business combinations not under common control. 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.
265
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.
For business combinations not under common control, the prospective method is applied, with
accounting recognised at the transaction date, and no effect on the financial statements of prior
periods.
Business combinations under common control
In business combinations involving entities under common control, the transaction is not
treated as a business combination in accordance with IFRS 3, but is accounted for using the
carrying amount method. Under this method, the assets and liabilities of the acquiree are
transferred at their carrying amounts, goodwill is not recognised, and any differences arising on
the elimination of intercompany transactions are recognised directly in equity.
In a business combinations under common control, the retrospective method may be applied,
whereby the acquirer's financial statements for prior periods are restated as if the business
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.
calculated individually using the straight-line amortisation method for each item, with the
exception of goodwill, which is not amortised. Intangible assets are amortised when they are
available for use. Amortisation costs of intangible assets with a finite useful life are recognised
in profit or loss.
The appropriateness of the amortisation period and the amortisation method of intangible
assets with a finite useful life is assessed at least at the end of each reporting period. Changes in
the expected useful life or expected pattern of consumption of future economic benefits
embodied in the asset are treated as changes in the amortisation period or method, as
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
266
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.
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.
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
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 2.5.5.5.
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
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
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.
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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.
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
The right-of-use assets and lease liabilities are disclosed in the statement of financial position as
separate items.
Modifications related to leases may be a result of:
▪
modifications of agreed lease terms and conditions and
▪
modifications of accounting estimates related to leases.
Modifications of agreed lease terms and conditions relate to changes in the scope of lease,
modifications of lease consideration or modifications of the lease term. In these cases, lease
modification is calculated in two ways:
▪
the modification is treated as a separate lease.
▪
to modify the terms and conditions, the existing lease contract is amended.
Lease modification is treated as a separate lease only when it involves adding one or more
underlying assets at a price applicable in the event of an independent lease of that added asset.
In this case, lease is accounted for as a separate lease, independently of the original lease, and
the accounting for the original lease continues unchanged.
In contrast, if a modification is not a separate lease, the accounting reflects that there is a linkage
between the original lease and the modified lease. The existing lease liability is remeasured as
follows:
▪
The new amount of lease consideration is taken into account.
▪
In the case of adding a new asset, the total consideration is evenly distributed among all
underlying leased assets.
▪
The new term of the lease is taken into account.
▪
When remeasuring lease liabilities, the new discount rate effective at the time of
modification is taken into account.
On the other hand, based on the difference between the newly measured liability and the
balance of liabilities before the modification, an appropriate adjustment is made to right-of-use
assets, resulting in a change in the amount of depreciation.
268
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
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-
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.
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.
Impairment 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.
269
Assessment of impairment signs of non-financial assets
Signs of impairment of investments in subsidiaries are assessed on a yearly basis. The
assessment takes into account signs from external sources of information (significant changes
in the environment with a negative impact on the company, changes in market interest rates
and returns on assets that affect the recoverable amount of assets, unexpected falls in market
values of assets, etc.) and from internal sources of information (statutory changes, changes in
management, change in the volume of business, the company’s deteriorated economic
performance).
Signs of impairment of land and buildings (classified as property, plant and equipment,
investment property or right-of-use assets) are assessed on a yearly basis. The assessment takes
into account signs from external sources (changes in the real property market) and internal
sources (depletion, obsolescence, inability to lease or generate positive cash flows from
operations).
If there are signs of impairment, an impairment test is performed, and the Group and the
Company estimate the asset’s recoverable amount. If the asset’s carrying amount exceeds its
recoverable amount, the asset is impaired.
Impairment test of investments in subsidiaries
The basis for performing an impairment test is IAS 36, which defines the recoverable amount of
an asset or cash-generating unit as the higher of two items:
▪
fair value less costs of disposal or
▪
value in use.
Impairment tests of investments in subsidiaries are performed by external chartered and
internal business valuator using valuation models, taking into account International Valuation
Standards. The valuation procedure includes at least:
▪
an analysis of the wider environment of society (macroeconomic and institutional);
▪
an analysis of the immediate environment (insurance market and markets of other
relevant activities);
▪
an analysis of the company’s business model and operations;
▪
an analysis of the company’s competitive position in the market;
▪
an analysis of the achievement of the plan in terms of the adequacy of planning or the
ability to implement a new plan;
▪
the selection of appropriate methodology and valuation methods according to the
standards, purpose (for accounting purposes) and subject of valuation (business activity);
▪
making and estimating assumptions consistent with the analysis;
▪
estimating the cost of capital based on market parameters;
▪
valuation;
▪
a sensitivity analysis of assumptions to valuation and estimated range.
The key bases and sources for valuation are:
▪
environmental data obtained from local regulatory institutions and statistical offices, the
European Central Bank and the International Monetary Fund;
▪
an assessment of 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;
270
▪
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.
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.
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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.
2.5.6
Equity and liabilities
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
The Company’s reserves from profit are statutory, legal and other reserves from profit and
treasury share reserves. The Company’s legal reserves are created and used in accordance with
the ZGD-1. Together with share premium, they must equal at least 10% of the share capital. This
is the Company’s tied-up capital set aside to protect the creditor’s interests. The Company’s
statutory reserves are created in the amount that equals up to 20% of the share capital. The
Company creates statutory reserved based on a decision by the Management Board to allocate
up to 5% of net profit in a financial year to statutory reserves, decreased by any amounts used
to cover retained loss, legal reserves and reserves from profit. Statutory reserves may be used to
cover net loss for the year and loss brought forward, for treasury share reserves, increase share
capital from the Company’s assets and regulate the dividend policy.
In accordance with the ZGD-1, the Company’s Management Board may allocate up to one half
of the amount of the net profit remaining after the appropriation of the profit for the purposes
required by law to create other reserves.
Reserves of subsidiaries are formed and used in accordance with the legislation of the countries
in which these companies operate.
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
272
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
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
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.
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.
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.
273
When accounting for a government grant, it is assessed whether it is conditional or
unconditional. If the government grant is conditional, provisions are recognised for its possible
future recovery.
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
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
Taxes and deferred taxes
Tax expense comprises current tax expense, top-up (minimum) tax 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.
The top-up (minimum) tax is calculated in accordance with the applicable legislation adopted by
each jurisdiction, as well as OECD guidelines and commentaries published up to the reporting
date.
Deferred tax assets and liabilities are calculated for temporary differences between the value of
assets and liabilities for tax purposes and their carrying amount.
Deferred tax assets are recognised for all deductible temporary differences, transfer of unused
tax credits and any unused tax losses. Deferred tax assets are recognised if it is probable that
taxable profit against which deductible temporary differences can be utilised and the transfer
of unused tax credits and losses will be available, except:
▪
if the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction other than a business combination
and which, at the time of the transaction, does not affect either the accounting or the
taxable profit;
274
▪
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
Fair value measurement
152
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.
152
SASB: FN-IN-550a.2
275
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.
276
When estimating the fair value of a subordinated bond issued, the price according to the model
(the discounted cash flow method) is taken into account, as the management assessed that the
market was not active.
The fair value hierarchy is used to disclose the method of determining the fair value of assets
and liabilities. This is determined by the inputs to the valuation technique used to measure fair
value.
▪
Level 1 inputs: unadjusted quoted prices in active markets under IFRS 13 for identical
assets or liabilities that the entity can access at the measurement date. The quoted prices
may be adjusted only exceptionally.
▪
Level 2 inputs: are quoted prices for similar assets or liabilities in active markets, quoted
prices in markets that are not active and quoted prices that are observable.
▪
Level 3 inputs: are prices that do not meet the standards for Level 1 or Level 2. The share
of unobservable inputs used in value measurement models is considerable.
Unobservable inputs have to use the assumptions that market participants would use
when pricing the asset or liability, including risk assumptions.
The valuation techniques and market inputs used to develop these techniques are presented
below.
277
Financial investment type | Value assessment method | Material parameters | Parameter weight applied | Fair value hierarchy |
EXTERNAL APPRAISERS (market operator) | ||||
Debt securities – compound | 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 index | Level 2 | |
Debt securities – compound with exposure to stock markets | Stochastic model | EUR SWAP interest rate curve, issuer credit spreads, comparable issuer credit spreads, volatility index | Level 2 | |
Derivatives | Black-Scholes model | Volatility indices | Level 2 | |
BLOOMBERG BVAL | ||||
Debt securities – companies, financial institutions and government | Cash flow discounting according to the amortisation schedule | EUR SWAP interest rate curve, issuer credit spreads, comparable issuer credit spreads, indicative listing | Level 2 | |
INTERNAL APPRAISERS | ||||
Government debt securities | Cash flow discounting according to the amortisation schedule | Republic of Slovenia interest rate yield curve | The yield curve of issuers from the Republic of Slovenia, Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia | Level 2 |
Debt securities – companies and financial institutions | Cash flow discounting according to the amortisation schedule | Republic of Slovenia interest rate yield curve, issuer credit spreads | Yield curve of the corresponding sovereign issuer, credit spreads between 1.0% and 4.3% | Level 2 |
| Equity securities | Cash flow discounting | g (growth rate during the constant growth period) | 2–2.1 % | Level 3 |
Discount rate | 5.4–12.9 % | |||
Lack of control discount | 10–21% | |||
Lack of marketability discount | 11–14% | |||
Net asset value method | Change in real property prices | |||
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 of development land) | Capitalisation rates, market prices of comparable real property | 7.5–15%, depending on risk/location Market values based on information available | Level 3 |
Investment property |
278
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 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, they may differ from the actual
results. 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 2024 are
presented in the disclosures of the items to which they relate.
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. Assumptions about the expected payout to the policyholder and the level of the policyholder's participation in the return on the underlying assets. |
Valuation of insurance contracts | For the subsequent valuation of insurance contracts, the judgement on whether a simplified premium allocation approach can be applied to the valuation of the contracts issued is relevant. Also important is the judgement on whether the individual components of contracts should be separated (and valued separately), and the judgement 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 | Assumptions about expected cash flows related to an instrument. |
279
Item in the financial statements/content | Accounting judgement/estimate | Assumptions and sources of uncertainty |
repayments of principal and interest on the outstanding principal amount (the SPPI test). | ||
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 selection of the model used to measure expected credit losses (ECL) impairment. 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). |
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. The judgement whether the conditions of control in an individual company are met is relevant. | 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, associates and joint ventures | Investments in subsidiaries are measured at cost in the Company's separate financial statements, while investments in associates and joint ventures are measured using the equity method. 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 measured 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 measured 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 measured 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. If 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 or carry out the transfer of unused tax credits and losses. The judgement of the justification of created deferred tax assets is a significant accounting judgement | Assumptions about the future profitability of the Group 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). |
280
2.7
The merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d.
On 1 October 2024, the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d. with
the parent company Zavarovalnica Triglav d.d. was entered in the register of companies at the
Ljubljana District Court, with the parent company becoming its universal legal successor. The
accounting merger date was 31 December 2023. The merger was carried out as part of the
optimisation of the Group's operations, primarily due to legislative changes and the subsequent
termination of supplemental health insurance, which was the core business of the transferor
company.
The merger was accounted for as a business combination under common control in the
Company's separate financial statements, using the carrying amount method. The merger
method was applied, whereby the individual assets and liabilities of the two companies were
aggregated. The effects of the elimination of intercompany transactions were recognised
directly in the parent company's equity. The merger had no impact on the Company's share
capital.
The retrospective method was applied in the preparation of the financial statements, with
figures for the comparative period restated as if the merger had occurred in the past. The effects
of these restatements on the Company's separate financial statements are presented below.
The merger had no impact on the Group's consolidated financial statements.
281
Effect of the merger on Zavarovalnica Triglav's statement of financial position
| 31 December 2023 after the merger | 31 December 2023 elimination of intercompany transactions | 31 December 2023 Zavarovalnica Triglav d.d. | 31 December 2023 Triglav, Zdravstvena zavarovalnica d.d. | 1 January 2023 after the merger | 1 January 2023 elimination of intercompany transactions | 1 January 2023 Zavarovalnica Triglav d.d. | 1 January 2023 Triglav, Zdravstvena zavarovalnica d.d. | |
(1=2+3+4) | (2) | (3) | (4) | (5=6+7+8) | (6) | (7) | (8) | |
ASSETS | 2,998,918,684 | -26,235,909 | 2,945,426,055 | 79,728,538 | 2,813,366,207 | -3,735,886 | 2,730,774,810 | 86,327,284 |
Property, plant and equipment | 68,853,107 | 0 | 68,609,478 | 243,629 | 70,920,360 | 0 | 69,115,897 | 1,804,464 |
Investment property | 43,427,181 | 0 | 43,427,181 | 0 | 43,377,173 | 0 | 43,377,173 | 0 |
Right-of-use assets | 4,813,383 | 0 | 4,356,487 | 456,897 | 4,369,011 | 0 | 3,940,725 | 428,285 |
Intangible assets and goodwill | 31,039,279 | 0 | 30,879,149 | 160,131 | 31,295,721 | 0 | 30,917,910 | 377,811 |
Deferred tax assets | 19,166,719 | 0 | 12,798,238 | 6,368,481 | 13,035,369 | 0 | 10,921,528 | 2,113,841 |
Investments in subsidiaries | 195,624,458 | -26,235,909 | 219,360,367 | 2,500,000 | 181,631,957 | -3,735,886 | 185,360,343 | 7,500 |
Investments in associates and joint ventures | 37,218,841 | 0 | 37,218,841 | 0 | 37,369,536 | 0 | 37,369,536 | 0 |
Financial investments | 1,955,647,480 | 0 | 1,888,444,496 | 67,202,985 | 1,959,726,933 | 0 | 1,882,599,813 | 77,127,120 |
Financial investments at FVOCI | 1,161,179,788 | 0 | 1,094,172,694 | 67,007,095 | 1,220,117,377 | 0 | 1,143,332,952 | 76,784,424 |
Financial investments at AC | 142,843,306 | 0 | 142,843,306 | 0 | 151,767,345 | 0 | 151,767,345 | 0 |
Financial investments at FVTPL | 651,624,386 | 0 | 651,428,496 | 195,890 | 587,842,211 | 0 | 587,499,515 | 342,696 |
Financial contract assets | 259,624,041 | 0 | 259,624,041 | 0 | 234,968,514 | 0 | 234,968,514 | 0 |
Financial contract assets at AC | 86,215,285 | 0 | 86,215,285 | 0 | 99,398,021 | 0 | 99,398,021 | 0 |
Financial contract assets at FVTPL | 169,625,986 | 0 | 169,625,986 | 0 | 131,403,313 | 0 | 131,403,313 | 0 |
Receivables from financial contracts | 83,130 | 0 | 83,130 | 0 | 398,787 | 0 | 398,787 | 0 |
Cash from financial contracts | 3,699,640 | 0 | 3,699,640 | 0 | 3,768,392 | 0 | 3,768,392 | 0 |
Insurance contract assets | 10,959,726 | 0 | 10,958,826 | 900 | 7,395,480 | 0 | 7,395,480 | 0 |
Reinsurance contract assets | 306,936,690 | 0 | 305,976,870 | 959,820 | 168,510,270 | 0 | 167,888,159 | 622,111 |
Non-current assets held for sale | 1,141,578 | 0 | 0 | 1,141,578 | 0 | 0 | 0 | 0 |
Current corporate income tax assets | 9,302,529 | 0 | 9,302,529 | 0 | 1,503,957 | 0 | 0 | 1,503,957 |
Other receivables | 20,448,498 | 0 | 20,047,025 | 401,473 | 35,359,592 | 0 | 35,155,610 | 203,982 |
Cash and cash equivalents | 31,906,343 | 0 | 31,679,444 | 226,899 | 21,111,319 | 0 | 19,296,850 | 1,814,470 |
Other assets | 2,808,831 | 0 | 2,743,084 | 65,747 | 2,791,015 | 0 | 2,467,271 | 323,744 |
282
| 31 December 2023 after the merger | 31 December 2023 elimination of intercompany transactions | 31 December 2023 Zavarovalnica Triglav d.d. | 31 December 2023 Triglav, Zdravstvena zavarovalnica d.d. | 1 January 2023 after the merger | 1 January 2023 elimination of intercompany transactions | 1 January 2023 Zavarovalnica Triglav d.d. | 1 January 2023 Triglav, Zdravstvena zavarovalnica d.d. | |
(1=2+3+4) | (2) | (3) | (4) | (5=6+7+8) | (6) | (7) | (8) | |
EQUITY AND LIABILITIES | 2,998,918,684 | -26,235,909 | 2,945,426,055 | 79,728,538 | 2,813,366,207 | -3,735,886 | 2,730,774,810 | 86,327,284 |
Equity | 682,526,257 | -26,235,909 | 669,221,118 | 39,541,048 | 691,858,436 | -3,735,886 | 658,949,145 | 36,645,178 |
Share capital | 73,701,392 | -48,322,167 | 73,701,392 | 48,322,167 | 73,701,391 | -25,822,144 | 73,701,392 | 25,822,144 |
Share premium | 53,412,884 | 0 | 53,412,884 | 0 | 53,412,884 | 0 | 53,412,884 | 0 |
Reserves from profit | 485,616,604 | 0 | 483,762,643 | 1,853,961 | 466,616,604 | 0 | 464,762,643 | 1,853,961 |
Accumulated other comprehensive income | -30,153,273 | 0 | -29,509,840 | -643,433 | -51,793,307 | 0 | -46,309,356 | -5,483,951 |
Retained profit/loss from previous years | 104,730,894 | 22,086,258 | 68,191,612 | 14,453,024 | 203,780,821 | 22,086,258 | 164,656,172 | 17,038,392 |
Total net earnings for the period | -4,782,244 | 0 | 19,662,426 | -24,444,671 | -53,859,958 | 0 | -51,274,590 | -2,585,368 |
Subordinated liabilities | 49,994,402 | 0 | 49,994,402 | 0 | 49,941,796 | 0 | 49,941,796 | 0 |
Financial contract liabilities | 259,624,041 | 0 | 259,624,041 | 0 | 234,968,514 | 0 | 234,968,514 | 0 |
Insurance contract liabilities | 1,919,950,640 | 0 | 1,885,673,792 | 34,276,847 | 1,732,053,911 | 0 | 1,688,411,267 | 43,642,644 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 | 4,052,657 | 0 | 4,052,384 | 273 |
Provisions | 16,023,250 | 0 | 14,323,506 | 1,699,744 | 18,117,857 | 0 | 17,035,092 | 1,082,765 |
Lease liabilities | 5,033,767 | 0 | 4,573,011 | 460,757 | 4,491,124 | 0 | 4,054,668 | 436,456 |
Other financial liabilities | 22,768 | 0 | 22,768 | 0 | 22,640 | 0 | 22,640 | 0 |
Current corporate income tax liabilities | 0 | 0 | 0 | 0 | 9,697,471 | 0 | 9,697,471 | 0 |
Other liabilities | 65,743,560 | 0 | 61,993,418 | 3,750,142 | 68,161,801 | 0 | 63,641,833 | 4,519,968 |
283
Effect of the merger on Zavarovalnica Triglav's profit or loss and other comprehensive income
2024 after the merger and elimination of discontinued operations | 2024 discontinued operations | 2024 after the merger | 2023 after the merger and elimination of discontinued operations | 2023 discontinued operations | 2023 after the merger | 2023 Zavarovalnica Triglav d.d. | 2023 Triglav, Zdravstvena zavarovalnica d.d. | |
(1=3-2) | (2) | (3) | (4=6-5) | (5) | (6=7+8) | (7) | (8) | |
Insurance service result | 129,154,926 | 5,539,543 | 134,694,470 | 59,321,919 | -22,680,223 | 36,641,696 | 61,094,042 | -24,452,346 |
Insurance income | 911,051,366 | 52,453 | 911,103,819 | 792,319,901 | 193,275,962 | 985,595,863 | 775,637,370 | 209,958,493 |
Insurance service expenses | -651,239,341 | 5,487,091 | -645,752,251 | -772,527,441 | -215,956,185 | -988,483,626 | -753,990,974 | -234,492,652 |
Net reinsurance service result | -130,657,099 | 0 | -130,657,099 | 39,529,459 | 0 | 39,529,459 | 39,447,646 | 81,814 |
Reinsurance income | 93,070,175 | 0 | 93,070,175 | 227,396,192 | 0 | 227,396,192 | 226,043,570 | 1,352,623 |
Reinsurance expenses | -223,727,274 | 0 | -223,727,274 | -187,866,733 | 0 | -187,866,733 | -186,595,924 | -1,270,809 |
Investment reusult | 134,861,313 | 0 | 134,861,313 | 69,821,254 | -2,725,610 | 67,095,644 | 70,134,725 | -3,039,081 |
Interest income calculated using the effective interest method | 29,070,766 | 0 | 29,070,766 | 22,126,049 | 176,237 | 22,302,286 | 21,611,210 | 691,076 |
Dividend income | 2,019,695 | 0 | 2,019,695 | 2,441,534 | 0 | 2,441,534 | 2,441,534 | 0 |
Net gains and losses on financial investments | 98,758,150 | 0 | 98,758,150 | 43,819,372 | -3,031,559 | 40,787,813 | 44,714,780 | -3,926,966 |
Net gains / losses from FVTPL financial instruments | 101,301,906 | 0 | 101,301,906 | 49,864,264 | 5,960 | 49,870,224 | 49,860,374 | 9,850 |
Net gains / losses from FVOCI financial instruments | -2,543,756 | 0 | -2,543,756 | -6,044,892 | -3,037,519 | -9,082,410 | -5,145,594 | -3,936,816 |
Net impairment and reversal of impairment of financial investments | 2,754,998 | 0 | 2,754,998 | 1,362,044 | 128,858 | 1,490,902 | 1,295,450 | 195,452 |
Other effects of investing activities | 2,257,704 | 0 | 2,257,704 | 72,255 | 853 | 73,108 | 71,751 | 1,357 |
Financial result from insurance contracts | -110,015,438 | -113,374 | -110,128,812 | -62,796,223 | -80,813 | -62,877,036 | -62,784,098 | -92,938 |
Income from asset management | 3,158,050 | 0 | 3,158,050 | 2,854,726 | 0 | 2,854,726 | 2,854,726 | 0 |
Non-attributable operating expenses | -43,730,392 | -236,860 | -43,967,252 | -39,651,436 | -2,043,895 | -41,695,332 | -39,248,760 | -2,446,571 |
Net other operating income and expenses | -15,861,691 | -59,651 | -15,921,342 | -46,756 | 449,475 | 402,719 | -495,030 | 897,749 |
Net other financial income and expenses | -7,006,800 | -4,030 | -7,010,829 | -2,799,969 | -11,357 | -2,811,326 | -2,818,078 | 6,752 |
Net impairment and reversal of impairment of non- financial assets | -66,111 | 0 | -66,111 | -2,502,745 | 0 | -2,502,745 | -2,502,745 | 0 |
Gains and losses on investments in associates | 9,098,991 | 0 | 9,098,991 | 18,585,761 | 0 | 18,585,761 | 18,585,761 | 0 |
Net other income and expenses | 1,843,909 | 11,022,074 | 12,865,983 | 750,492 | -683,446 | 67,046 | 740,963 | -673,917 |
Earnings before tax from continuing operations | 101,436,756 | 16,147,704 | 117,584,460 | 43,537,022 | -27,775,868 | 15,761,154 | 45,561,505 | -29,800,351 |
Tax expense from continuing operations | -19,352,563 | 0 | -19,352,563 | -7,046,775 | 5,503,377 | -1,543,398 | -6,899,078 | 5,355,680 |
Income tax | -16,595,675 | 3,552,495 | -13,043,180 | -10,092,384 | 0 | -10,092,384 | -10,092,384 | 0 |
Income/expense from deferred tax | -2,756,889 | -3,552,495 | -6,309,384 | 3,045,609 | 5,503,377 | 8,548,986 | 3,193,306 | 5,355,680 |
Net earnings from continuing operations | 82,084,193 | 16,147,704 | 98,231,897 | 36,490,247 | -22,272,491 | 14,217,756 | 38,662,426 | -24,444,671 |
Net earnings from discontinued operations | 16,147,704 | -22,272,491 | ||||||
Total net earnings | 98,231,897 | 14,217,756 |
284
2024 after the merger and elimination of discontinued operations | 2024 discontinued operations | 2024 after the merger | 2023 after the merger and elimination of discontinued operations | 2023 discontinued operations | 2023 after the merger | 2023 Zavarovalnica Triglav d.d. | 2023 Triglav, Zdravstvena zavarovalnica d.d. | |
(1=3-2) | (2) | (3) | (4=6-5) | (5) | (6=7+8) | (7) | (8) | |
Other comprehensive income after tax from continuing operations | 674,073 | -2,979 | 671,094 | 31,742,116 | 1,545,820 | 33,287,936 | 28,447,417 | 4,840,519 |
Items which will not be transferred into income statement in the following periods | 256,381 | 0 | 256,381 | 2,581,505 | 0 | 2,581,505 | 2,562,939 | 18,566 |
Actuarial gains/losses | -31,908 | 0 | -31,908 | -1,575,443 | 0 | -1,575,443 | -1,594,009 | 18,566 |
Effect of capital instruments FVOCI | 258,519 | 0 | 258,519 | 4,332,776 | 0 | 4,332,776 | 4,332,776 | 0 |
Tax effect from OCI which will not be reclassified into income statement | 29,770 | 0 | 29,770 | -175,828 | 0 | -175,828 | -175,828 | 0 |
Items which could be transferred into income statement in the following periods | 417,692 | -2,979 | 414,713 | 29,160,611 | 1,545,820 | 30,706,431 | 25,884,478 | 4,821,953 |
Accumulated financial income/expenses from insurance contracts | -20,285,725 | -3,819 | -20,289,544 | -37,170,823 | -160,804 | -37,331,627 | -37,049,204 | -282,423 |
Accumulated financial income/expenses from reinsurance contracts | 1,427,411 | 0 | 1,427,411 | 4,091,190 | 0 | 4,091,190 | 4,090,372 | 818 |
Effect of debt instruments FVOCI | 19,280,482 | 0 | 19,280,482 | 66,691,229 | 1,704,633 | 68,395,862 | 62,191,263 | 6,204,599 |
Tax effect from OCI which could be reclassified into income statement | -4,476 | 840 | -3,636 | -4,450,985 | 1,991 | -4,448,994 | -3,347,953 | -1,101,041 |
Other comprehensive income after tax from discontinued operations | -2,979 | 1,545,820 | ||||||
Total other comprehensive income | 671,094 | 33,287,936 | ||||||
Total comprehensive income | 98,902,991 | 47,505,691 |
285
2.8
Risk management
153
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
internally set 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 system and
processes is presented in Section 9 of the Business Report.
2.8.1
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.
The Group and the Company also underwrite unit-linked insurance contracts. In such cases, the
Group and the Company are not exposed to investment risk. 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.
2.8.2
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 inward 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.
153
ESRS GOV-5_01–05
286
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 own findings, know-
how and procedures, complemented by the expertise of reinsurers that 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.
2.8.2.1
Non-life underwriting risks
154
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 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. Their adequacy for the insurance portfolio is assessed 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. 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 and the Group'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
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287
incurred claims is also influenced by the maturity of liabilities – the average 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.
288
Exposure of non-life insurance contracts to premium risk
Net premium earned by non-life insurance segment
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 adjusted | |
Health insurance | 39,505,039 | 221,773,969 | 18,675,678 | 208,065,739 |
Income protection insurance | 80,358,498 | 77,737,291 | 60,175,723 | 58,279,119 |
Motor vehicle liability insurance | 222,481,125 | 181,146,680 | 126,039,776 | 100,595,568 |
Other motor vehicle insurance | 204,263,442 | 171,824,106 | 156,675,571 | 137,279,638 |
Marine, aircraft and transport insurance | 23,820,695 | 36,478,796 | 8,729,741 | 17,318,228 |
Fire and other damage to property insurance | 246,016,363 | 233,539,195 | 114,714,082 | 109,099,495 |
General liability insurance | 39,603,898 | 36,714,756 | 32,349,217 | 31,015,799 |
Credit and suretyship insurance | 25,043,335 | 28,323,615 | 19,034,242 | 21,434,610 |
Legal expenses insurance | 504,372 | 503,488 | 442,471 | 449,208 |
Assistance insurance | 34,486,043 | 29,692,788 | 27,553,200 | 23,516,521 |
Financial loss insurance | 4,023,104 | 3,812,697 | 2,733,814 | 2,391,247 |
Non-proportional health reinsurance | 163,226 | 160,112 | 0 | 0 |
Non-proportional liability reinsurance | 2,961,026 | 3,496,061 | -160,634 | -43,392 |
Non-proportional marine, aircraft and transport reinsurance | 2,312,759 | 1,953,430 | 187,291 | 240,704 |
Non-proportional non-life reinsurance | 32,674,043 | 22,605,748 | 4,671,239 | 2,182,752 |
TOTAL | 958,216,969 | 1,049,762,730 | 571,821,411 | 711,825,237 |
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 | |||
2024 | 2023 | 2024 | 2023 adjusted | |
Claims ratio | 65.5% | 76.3% | 63.1% | 77.7% |
Expense ratio | 28.1% | 25.3% | 29.1% | 25.1% |
Impact of 5% higher expense ratio on profit or loss | -6,419,827 | -4,401,017 | -1,508,406 | -2,804,668 |
Impact of 5% lower expense ratio on profit or loss | 3,845,214 | 1,410,584 | 1,244,191 | 792,841 |
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 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Health insurance | 6,792,834 | 19,328,518 | 3,965,594 | 17,621,030 |
Income protection insurance | 32,451,162 | 33,558,484 | 26,910,011 | 27,946,633 |
Motor vehicle liability insurance | 144,215,421 | 135,709,857 | 85,875,710 | 83,587,087 |
Other motor vehicle insurance | 47,861,958 | 35,045,795 | 35,909,377 | 27,410,442 |
Marine, aircraft and transport insurance | 37,108,105 | 35,846,486 | 17,144,118 | 19,635,840 |
Fire and other damage to property insurance | 135,636,829 | 119,065,370 | 59,107,548 | 54,901,325 |
General liability insurance | 54,329,700 | 54,290,226 | 46,033,077 | 47,717,372 |
Credit and suretyship insurance | 3,481,348 | 2,605,282 | 2,072,799 | 1,188,365 |
Legal expenses insurance | 225,913 | 106,747 | 224,406 | 105,476 |
Assistance insurance | 5,667,718 | 4,555,262 | 4,322,461 | 3,242,310 |
Financial loss insurance | 4,894,854 | 4,016,021 | 1,444,785 | 1,183,498 |
Non-proportional health reinsurance | 116,935 | 134,892 | 0 | 0 |
Non-proportional liability reinsurance | 979,929 | 1,472,733 | 50,105 | 25,051 |
Non-proportional marine, aircraft and transport reinsurance | 2,105,017 | 1,983,027 | 0 | 0 |
Non-proportional non-life reinsurance | 44,137,349 | 30,162,288 | 6,033,437 | 6,040,207 |
TOTAL | 520,005,074 | 477,880,988 | 289,093,427 | 290,604,636 |
* 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. Insurance segments with low volatility include
health insurance, motor vehicle liability insurance, other motor vehicle insurance and legal
289
expenses insurance. In 2024, an increase was observed in the ratio of the exposure of insurance
segments with high volatility compared to the exposure of insurance segments with low
volatility. For the Company, the main reason is the termination of supplemental health
insurance, while for the Group, the growth of the portfolio in the
non-proportional non-life
reinsurance
and
fire and other damage to property insurance
segments is also leading to an
increase in claims liabilities in both segments with higher volatility.
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.
Geographical diversification of non-life insurance exposure of the Group and the Company by
written premium
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 adjusted | |
Slovenia | 853,676,497 | 989,115,289 | 699,396,116 | 849,648,285 |
Serbia | 137,879,107 | 115,929,526 | 16,787,000 | 14,252,139 |
Croatia | 107,807,267 | 106,062,592 | 7,397,536 | 7,288,979 |
Montenegro | 49,688,303 | 45,285,103 | 4,562,086 | 3,961,948 |
Bosnia and Herzegovina | 40,401,789 | 43,689,980 | 3,188,821 | 5,107,547 |
Germany | 32,065,466 | 31,372,947 | 20,756,193 | 21,834,448 |
Poland | 58,104,568 | 30,795,406 | 56,330,330 | 29,608,634 |
North Macedonia | 33,301,018 | 30,146,357 | 3,352,475 | 2,877,798 |
Greece | 28,178,706 | 29,925,349 | 26,126,116 | 28,256,416 |
Other | 225,236,175 | 183,480,949 | 90,102,268 | 54,529,728 |
TOTAL | 1,566,338,895 | 1,605,803,498 | 927,998,941 | 1,017,365,921 |
Segment diversification of non-life insurance exposure of the Group and the Company by written
premium
in EUR | ||||
Triglav Group | Triglav Group | |||
2024 | 2023 | 2024 | 2023 adjusted | |
Health insurance | 48,525,422 | 225,426,715 | 22,878,266 | 207,942,121 |
Income protection insurance | 90,480,160 | 86,734,853 | 65,025,353 | 62,857,350 |
Motor vehicle liability insurance | 314,480,196 | 275,324,337 | 174,877,315 | 149,688,381 |
Other motor vehicle insurance | 240,783,071 | 222,616,881 | 177,679,444 | 168,312,309 |
Marine, aircraft and transport insurance | 78,331,559 | 88,244,978 | 55,668,960 | 61,787,322 |
Fire and other damage to property insurance | 477,874,295 | 454,265,931 | 242,290,043 | 226,434,466 |
General liability insurance | 76,361,783 | 70,403,385 | 52,000,400 | 50,508,080 |
Credit and suretyship insurance | 49,827,700 | 47,931,095 | 29,455,937 | 28,484,795 |
Legal expenses insurance | 859,977 | 758,810 | 795,601 | 654,715 |
Assistance insurance | 42,369,696 | 38,618,946 | 32,999,038 | 30,364,587 |
Financial loss insurance | 13,444,145 | 11,035,960 | 3,852,603 | 4,356,555 |
Non-proportional health reinsurance | 288,603 | 263,190 | 0 | 0 |
Non-proportional liability reinsurance | 7,432,559 | 7,084,828 | 6,523 | 35,255 |
Non-proportional marine, aircraft and transport reinsurance | 3,329,753 | 3,301,497 | 144,704 | 140,908 |
Non-proportional non-life reinsurance | 121,949,978 | 73,792,094 | 70,324,752 | 25,799,077 |
TOTAL | 1,566,338,895 | 1,605,803,498 | 927,998,941 | 1,017,365,921 |
In 2024, three events were recorded and classified as catastrophe events. All events were
hailstorms. The table presents the gross and net financial effects of these events for the
Company. They are shown separately according to modelled and non-modelled perils, as the
Company regularly models the perils that pose the greatest exposure or high risk. These perils
are flood, hail, storm and earthquake. In both 2024 and 2023, the Company did not record any
events from non-modelled perils.
290
Realised financial effect of catastrophe events at Zavarovalnica Triglav
Modelled perils | Non-modelled perils | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Gross financial impact (EUR million) | 28.8 | 162.6 | 0.0 | 0.0 |
Net financial impact (EUR million) | 23.2 | 56.4 | 0.0 | 0.0 |
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
155
return period over a one-
year period by peril. The table below presents data as at 31 December 2024, 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 Dec 2023 |
Hail | 98.2 |
Storm | 47.1 |
Flood | 96.3 |
* 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.
In ensuring an adequate reinsurance coverage at Group level, Pozavarovalnica Triglav Re plays
an important role as it mainly assumes underwriting risks based on reinsurance agreements
with individual Group companies. Triglav Re enters into outward reinsurance (retrocession)
agreements for a portion of the risks it reinsures to effectively manage its exposures and own
assets, as well as, indirectly, the Group's own assets.
The Group's largest retention amounts to EUR 12.4 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 30 years, and by a low or null
correlation with other contingent liabilities.
Nuclear risk capacity assumed in the Triglav Group
Assumed capacity in EUR | ||
2024 | 2023 | |
Zavarovalnica Triglav, d.d. | 10,000,000 | 10,000,000 |
Pozavarovalnica Triglav Re, d.d. | 4,500,000 | 4,500,000 |
Triglav Osiguranje, d.d., Zagreb | 1,000,000 | 1,000,000 |
Total after the event | 15,500,000 | 15,500,000 |
As part of the own risk and solvency assessment process, a quantitative stress test was carried
out in 2024 to assess the impact of climate change risk. For this purpose, the Company
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291
conducted a stress scenario test focusing only on risks deemed material in the short term. For
the stress scenario test of the Company, the RCP 4.5 and RCP 8.5 scenarios were used, with the
RCP 4.5 scenario representing a moderate emissions reduction policy and the RCP 8.5 scenario
reflecting a high emissions maintenance scenario. The stress scenario test involved increasing
the 200-year flood event loss for Slovenia by these factors, in line with the definition of the 200-
year loss calculation according to the standard formula.
The results of the stress scenario revealed a significant impact on the gross risk assessment,
with a considerably lower impact on the net risk assessment. This indicates that the Group's
risks are effectively managed through adequate reinsurance protection. Therefore, it will be
crucial for the Company and the Group in the coming years to evaluate the cost of maintaining
similar reinsurance protection as currently in place. Reinsurance protection for 2025 is already
in place at the time of drafting this report.
Management of non-life underwriting risks in 2024
The non-life underwriting risk profile remained largely unchanged in 2024, though the
Company experienced an increase in premium. Unlike in 2023, there was no material increase
in reserve risk due to claims development arising from natural disasters.
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.
The reinsurance programme in place in 2024 did not differ significantly from that in place in
2023.
2.8.2.2
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 in pension annuity insurance, particularly in supplemental voluntary insurance. The vast
majority of insurance covers include statutory or contractual rights of policyholders to modify
292
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. It includes the option of partial or full surrender, capitalisation, the
decision to pay a lump sum instead of an annuity and similar. 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
conclusion, either as a fixed amount or share. However, as insurance or annuity payments
293
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, with
related risks assessed as part of the regular portfolio valuation. Among them is guaranteed
interest rate risk, which arises in products with a savings component, such as 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.
Life underwriting risk assessment
in EUR | ||||
Triglav Group | 31 Dec 2024 | 31 Dec 2023 | ||
| Amount | Share of risk in total assessment | Amount | Share of risk in total assessment | |
Mortality risk | 11,385,063 | 16% | 12,058,728 | 17% |
Longevity risk | 9,497,442 | 13% | 10,399,792 | 14% |
Disability and morbidity risk | 263,955 | 0% | 351,233 | 0% |
Lapse risk | 35,100,250 | 48% | 35,825,410 | 49% |
Expense risk | 19,416,939 | 27% | 18,422,470 | 25% |
Audit risk | 1,407,394 | 2% | 1,193,587 | 2% |
Life insurance catastrophe risk | 7,531,674 | 10% | 7,143,657 | 10% |
Diversification | -11,338,549 | -15% | -12,520,918 | -17% |
Total (regulatory assessment of life underwriting risks) | 73,264,168 | 100% | 72,873,959 | 100% |
in EUR | ||||
Zavarovalnica Triglav | 31 Dec 2024 | 31 Dec 2023 adjusted | ||
| Amount | Share of risk in total assessment | Amount | Share of risk in total assessment | |
Mortality risk | 7,430,980 | 12% | 8,744,157 | 14% |
Longevity risk | 9,399,119 | 15% | 10,316,914 | 16% |
Disability and morbidity risk | 124,714 | 0% | 187,489 | 0% |
Lapse risk | 27,498,228 | 44% | 29,470,421 | 46% |
Expense risk | 16,680,122 | 27% | 16,352,885 | 26% |
Audit risk | 1,332,052 | 2% | 1,148,870 | 2% |
Life insurance catastrophe risk | 5,206,799 | 8% | 5,163,581 | 8% |
Diversification | -5,297,065 | -8% | -7,473,438 | -12% |
Total (regulatory assessment of life underwriting risks) | 62,374,950 | 100% | 63,910,878 | 100% |
294
Sensitivity of net insurance contract liabilities of the Triglav Group to parameter changes
in EUR | ||||||||
Exposure | Sensitivity | |||||||
| 31 Dec 2024 | Present value of future cash flows | Contractual service margin as at | 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 | 510,361,252 | 162,930,885 | ||||||
Lapse rate +50% | 15,633,026 | -10,763,950 | 4,869,076 | 152,166,936 | 2,425,300 | -7,294,376 | ||
Costs +10% | 9,718,242 | -7,195,552 | 2,522,690 | 155,735,334 | -3,172,433 | 649,743 | ||
Unit-linked insurance | -67,488,052 | 109,235,427 | ||||||
Lapse rate +50% | 28,430,607 | -26,554,573 | 1,876,035 | 82,680,855 | -1,876,035 | 0 | ||
Costs +10% | 9,166,950 | -7,255,007 | 1,911,943 | 101,980,420 | -1,911,943 | 0 | ||
in EUR | ||||||||
Exposure | Sensitivity | |||||||
| 31 Dec 2023 | Present value of future cash flows | Contractual service margin as at | 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 | ||
Sensitivity of net insurance contract liabilities of the Company to parameter changes
in EUR | ||||||||
Exposure | Sensitivity | |||||||
| 31 Dec 2024 | Present value of future cash flows | Contractual service margin as at | 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 | 420,659,888 | 149,568,770 | ||||||
Lapse rate +50% | 12,810,718 | -9,026,813 | 3,783,905 | 140,541,957 | 2,754,049 | -6,537,954 | ||
Costs +10% | 7,941,498 | -6,337,207 | 1,604,290 | 143,231,563 | -2,193,338 | 589,048 | ||
Unit-linked insurance | -92,697,047 | 108,237,510 | ||||||
Lapse rate +50% | 27,890,994 | -26,256,720 | 1,634,273 | 81,980,789 | -1,634,273 | 0 | ||
Costs +10% | 8,326,458 | -6,953,667 | 1,372,791 | 101,283,843 | -1,372,791 | 0 | ||
295
in EUR | ||||||||
Exposure | Sensitivity | |||||||
| 31 Dec 2023 adjusted | Present value of future cash flows | Contractual service margin as at | 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 | ||
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 the special return guarantee also arise from voluntary supplementary
pension insurance during the period of saving. These risks arise largely from market risks.
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
major concentration risk in the portfolio is reduced by transferring a portion of the risks to
reinsurers based on the reinsurance programme.
The Group is therefore not exposed to the risk of a large number of claims arising from a single
event, with the exception of a catastrophic event that could affect a larger area and result in a
higher number of fatalities. An example of such an event would be a widespread pandemic,
which could lead to increased mortality among the insured population.
Management of life underwriting risks in 2024
The life underwriting risk profile did not change significantly in the reporting year. The biggest
risk continues to be lapse risk, which decreased minimally in 2024. This is followed by expense
risk, which did not change significantly in the reporting year.
296
Market risks
The Group invests written premium (in the framework of the insurance business) and its own
funds. The value of investment portfolios depends to a large extent 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 conducted in line with the prudent person principle and the principles of asset-liability
management (ALM), considering both 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,
complemented by internal measures primarily using 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 expected 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 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
are exposed to this risk. Assets (investments) mainly include shares and collective investment
undertakings focused on equity instruments. Liabilities sensitive to this risk arise primaly
from unit-linked life insurance and supplemental voluntary pension insurance, where such
297
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
stems 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).
298
The table below shows the level of market risks by market risk subtype.
in EUR | |||||||
| Triglav Group | Zavarovalnica Triglav | ||||||
| 31 Dec 2024 | 31 Dec 2023 | Index | 31 Dec 2024 | 31 Dec 2023 Zavarovalnica Triglav | 31 Dec 2023 Triglav, Zdravstvena zavarovalnica | Index | |
Interest rate risk | 11,293,523 | 5,418,512 | 208 | 0 | 5,928,971 | 618,808 | 0 |
Equity risk | 43,833,549 | 33,663,939 | 130 | 161,463,378 | 144,576,665 | 0 | 112 |
Property risk | 54,156,886 | 52,535,620 | 103 | 35,673,464 | 35,579,269 | 60,718 | 100 |
Spread risk | 61,650,100 | 59,393,574 | 104 | 35,390,015 | 36,332,136 | 593,743 | 96 |
Currency risk | 30,881,947 | 33,437,667 | 92 | 11,309,379 | 10,318,760 | 0 | 110 |
Market concentration risk | 46,271,902 | 37,153,148 | 125 | 63,876,636 | 55,988,732 | 48,032 | 114 |
Diversification | -70,957,930 | -56,260,907 | 126 | -60,846,049 | -54,471,070 | -439,542 | 111 |
Total market risks* | 177,129,977 | 165,341,553 | 107 | 246,866,822 | 234,253,462 | 888,759 | 105 |
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 Company's interest rate risk assessment as at 31 December 2024 is zero, due to the
application of relevant legal provisions governing the consideration of scenarios when assessing
the absorption capacity of insurance technical provisions in relation to interest rate risk. Had
the absorption capacity of insurance technical provisions not been considered, the estimated
interest rate risk would have amounted to EUR 8.1 million, compared to EUR 5.9 million in the
previous year.
The Group's market risk as at 31 December 2024 increased by 7% year-on-year, while that of the
Company rose by 5%. 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 risk assessment increased in 2024 compared to the previous year.
The euro risk-free interest rate curve gradually returned to a more normal trajectory in 2024.The
short end of the curve decreased significantly, while the middle and long ends remained largely
unchanged compared to the end of the previous year. An analysis of the movement in euro
interest rate throughout 2024 indicates that the year was relatively stable.
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 0.15 year overall, while the duration of the
investment portfolios backing long-term insurance liabilities increased (around 0.2 year), while
the duration of the investment portfolios backing shorter maturities and excess, i.e. own funds,
shortened. This allowed the Group 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 volume of
interest-sensitive assets grew significantly more than liabilities compared to the previous year.
This is the main reason why interest rate risk, as measured by the Solvency II capital
requirement, increased compared to the previous year but remains very low.
299
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 69.2 million, which would be reflected in other comprehensive
income, and an additional EUR 0.9 million in profit or loss. A parallel fall in interest rates of 100
basis points would have a positive impact of EUR 79.1 million in comprehensive income and EUR
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.
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 reflects the matching of interest rate resetting between the
asset and liability sides. The interest rate matching estimate as of 31 December 2024 showed a
slight increase compared to the previous year. The duration gap of assets and liabilities at Group
level is negative and stands at –1.3 years (31 December 2023: –1.5 years). The most important
impact originates from the Company, where the duration gap of assets and liabilities was –1.7
years (31 December 2023: –2.2 years). Interest rate risk is actively managed by adjusting the
portfolio at all times.
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 increased by 30% at
Group level. In parallel with the introduction of IFRS 9, the Group disposed of a significant part
of its listed equity investments, which were geographically concentrated in the domestic
market, and is gradually replacing this exposure with investments in alternative investment
funds. The main drivers of the increase in equity risk compared to the previous year are
additional inflows and the revaluation of equity-focused alternative investment funds. Equity
risk is also increased by the exchange of the participating interest in Nama with the
participating interest in Katera.
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.
300
Exposure and sectoral diversification of assets for which the Group and the Company assume
equity risk
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
| 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Equity investments | 11,313,938 | 9,854,613 | 7,620,768 | 7,436,024 |
Communications | 256,442 | 33,366 | 0 | 0 |
Cyclical sectors | 2,225,652 | 2,207,134 | 2,104,236 | 2,080,901 |
Non-cyclical sectors | 1,441,950 | 961,770 | 610,305 | 610,305 |
Finance | 3,301,753 | 2,839,773 | 1,279,358 | 1,041,532 |
Industry | 732,994 | 1,016,750 | 675,000 | 1,010,000 |
Technology | 393,991 | 93,250 | 0 | 0 |
Public goods | 2,899,910 | 2,641,391 | 2,899,910 | 2,641,391 |
Other | 61,246 | 61,181 | 51,959 | 51,895 |
Public collective investment undertakings | 42,540,730 | 46,177,391 | 0 | 0 |
Equity funds | 4,213,574 | 3,767,867 | 0 | 0 |
Bond funds | 32,963,420 | 39,142,674 | 0 | 0 |
Money market funds | 5,023,018 | 3,150,687 | 0 | 0 |
Asset allocation funds | 340,718 | 116,162 | 0 | 0 |
Private collective investment undertakings | 146,828,222 | 112,648,193 | 145,317,756 | 111,327,945 |
Equity funds | 27,425,049 | 24,595,393 | 27,329,735 | 24,534,960 |
Bond funds | 55,062,048 | 28,830,644 | 55,062,048 | 28,830,644 |
Infrastructure funds | 38,044,275 | 34,878,186 | 38,044,275 | 34,878,186 |
Real estate funds | 18,736,756 | 17,641,074 | 17,321,604 | 16,381,259 |
Other | 7,560,093 | 6,702,896 | 7,560,093 | 6,702,896 |
Total assets exposed to equity risk | 200,682,890 | 168,680,196 | 152,938,524 | 118,763,969 |
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
5.1 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 2024, similar to 2023, exhibited relatively low volatility on average, while they
continued to decrease. The Group proactively manages spread risk in line with its investment
policies.
Exposure to debt securities increased by EUR 230 million in 2024. Exposure to debt securities
from non-sovereign issuers, which are the primary contributors to spread risk, decreased
301
significantly at Group level over the reporting period but remained similar in absolute terms to
the previous year. The duration of the credit-sensitive investment portfolio remained virtually
unchanged compared to the previous year, while the credit quality of this portfolio slightly
declined. Together, these changes resulted in a slight increase in the Group's spread risk, rising
by 3.8% during the reporting period.
In its investment portfolio, the Group is exposed to investments with outstanding credit quality.
A total of 72.0% (2023: 65.2%) of investments in debt securities have at least an "A" credit rating.
In the corporate debt securities segment, financial institutions' securities represent 56.0% of
investments (2023: 57.0%).
Exposure of assets to spread risk
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
| 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Government debt securities | 1,444,489,932 | 1,199,254,862 | 993,395,097 | 789,730,938 |
AAA | 561,792,935 | 406,759,440 | 439,502,130 | 283,633,558 |
AA | 265,479,668 | 237,082,341 | 214,479,568 | 196,065,664 |
A | 365,531,031 | 216,807,741 | 248,741,490 | 185,963,018 |
BBB | 101,880,339 | 201,076,501 | 84,846,071 | 114,052,004 |
Below BBB | 149,638,064 | 133,216,091 | 5,825,839 | 7,136,483 |
Not rated | 167,896 | 4,312,748 | 0 | 2,880,211 |
Corporate debt securities | 648,143,237 | 660,790,040 | 456,903,038 | 522,568,564 |
AAA | 10,493,938 | 11,430,045 | 10,493,938 | 10,327,440 |
AA | 58,320,606 | 70,457,675 | 46,585,765 | 59,620,761 |
A | 244,349,874 | 269,934,941 | 160,520,352 | 208,589,566 |
BBB | 299,459,451 | 265,202,398 | 211,684,150 | 209,956,553 |
Below BBB | 14,868,055 | 18,922,792 | 12,659,136 | 17,198,480 |
Not rated | 20,651,313 | 24,842,189 | 14,959,698 | 16,875,764 |
Total debt securities and other fixed-income securities | 2,092,633,169 | 1,860,044,901 | 1,450,298,136 | 1,312,299,502 |
* 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 represented 7.4% of total debt securities at 31 December 2024 (31
December 2023: 8.4%).
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 also used derivatives to manage currency risk in 2024.
The currency risk at Group level fell by 7.6%.
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
302
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.
303
Currency exposure of the Group's assets and liabilities
in EUR | |||||||||
| 31 Dec 2024 | EUR | USD | BAM | RSD | MKD | Other | TOTAL | The elimination of intercompany transactions within the Group | Carrying amount |
Financial investments | 2,825,501,724 | 16,394,750 | 57,825,771 | 60,021,600 | 36,735,653 | 46,036,097 | 3,042,515,595 | 1,923,725 | 3,040,591,870 |
Insurance contract assets | 14,723,422 | 67,220 | 0 | 1,697 | 0 | 24,689 | 14,817,028 | -5,024,079 | 19,841,107 |
Reinsurance contract assets | 370,910,485 | 25,270,997 | 7,941,533 | 18,906,774 | 0 | 3,647,519 | 426,677,308 | 137,067,053 | 289,610,255 |
Other receivables | 43,388,734 | 43,848 | 566,091 | 1,048,344 | 1,301,486 | 4,698 | 46,353,201 | 1,815,001 | 44,538,200 |
Cash and cash equivalents | 47,143,967 | 1,860,109 | 10,060,009 | 7,755,072 | 1,187,062 | 944,860 | 68,951,079 | 0 | 68,951,079 |
Total assets | 3,301,668,332 | 43,636,924 | 76,393,404 | 87,733,487 | 39,224,201 | 50,657,863 | 3,599,314,211 | 135,781,700 | 3,463,532,511 |
Subordinated liabilities | 152,130,399 | 0 | 0 | 0 | 0 | 0 | 152,130,399 | 0 | 152,130,399 |
Insurance contract liabilities | 2,391,561,592 | 42,830,320 | 11,906,540 | 60,699,042 | 21,494,888 | 75,314,117 | 2,603,806,499 | 130,308,533 | 2,473,497,966 |
Reinsurance contract liabilities | 2,274,859 | 148,348 | 460,625 | 790,294 | 189,526 | 25,227 | 3,888,879 | 1,734,441 | 2,154,438 |
Lease liabilities | 12,783,553 | 0 | 1,239,058 | 0 | 427,367 | 0 | 14,449,978 | 3,793,288 | 10,656,690 |
Other financial liabilities | 976,001 | 0 | 152,367 | 201,801 | 9,403 | 0 | 1,339,572 | 1,022,056 | 317,516 |
Total liabilities | 2,559,726,404 | 42,978,668 | 13,758,590 | 61,691,137 | 22,121,184 | 75,339,344 | 2,775,615,327 | 136,858,318 | 2,638,757,009 |
Net currency exposure | 741,941,928 | 658,256 | 62,634,814 | 26,042,350 | 17,103,017 | -24,681,481 | 823,698,884 | -1,076,618 | 822,622,266 |
* 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.
The Group's parent company also manages its currency risk through the use of currency
derivatives, with a notional amount of EUR 13 million as at 31 December 2024 (none as at 31
December 2023). These instruments were used to reduce exposure to the US dollar and the
British pound, taking into account the look-through approach, which is not reflected in the table
above.
304
.
* 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.
in EUR | |||||||||
| 31 Dec 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 | 0 | 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 |
305
Currency exposure of the Company's assets and liabilities
31 Dec 2024 | EUR | USD | BAM | RSD | MKD | Other | Total |
Financial investments | 2,244,426,466 | 3,337,005 | 0 | 214 | 0 | 13,606,921 | 2,261,370,605 |
Insurance contract assets | 14,432,147 | 0 | 0 | 0 | 0 | 0 | 14,432,147 |
Reinsurance contract assets | 249,461,236 | 0 | 0 | 0 | 0 | 0 | 249,461,236 |
Other receivables | 27,753,903 | 0 | 0 | 0 | 0 | 0 | 27,753,903 |
Cash and cash equivalents | 18,072,124 | 45,198 | 0 | 22,748 | 2,976 | 22,274 | 18,165,321 |
Total assets | 2,554,145,876 | 3,382,203 | 0 | 22,962 | 2,976 | 13,629,195 | 2,571,183,212 |
Subordinated liabilities | 152,130,399 | 0 | 0 | 0 | 0 | 0 | 152,130,399 |
Insurance contract liabilities | 1,982,613,699 | 0 | 0 | 0 | 0 | 0 | 1,982,613,699 |
Reinsurance contract liabilities | 429,625 | 0 | 0 | 0 | 0 | 0 | 429,625 |
Lease liabilities | 4,302,797 | 0 | 0 | 0 | 0 | 0 | 4,302,797 |
Other financial liabilities | 69,430 | 0 | 0 | 0 | 0 | 0 | 69,430 |
Total liabilities | 2,139,545,950 | 0 | 0 | 0 | 0 | 0 | 2,139,545,950 |
Net currency exposure | 414,599,926 | 3,382,203 | 0 | 22,962 | 2,976 | 13,629,195 | 431,637,262 |
* 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 Dec 2023 adjusted | EUR | USD | BAM | RSD | MKD | Other | Total |
Financial investments | 1,955,647,331 | 0 | 0 | 149 | 0 | 0 | 1,955,647,480 |
Insurance contract assets | 10,959,726 | 0 | 0 | 0 | 0 | 0 | 10,959,726 |
Reinsurance contract assets | 306,936,690 | 0 | 0 | 0 | 0 | 0 | 306,936,690 |
Other receivables | 20,448,498 | 0 | 0 | 0 | 0 | 0 | 20,448,498 |
Cash and cash equivalents | 30,849,158 | 1,022,842 | 0 | 23,799 | 2,961 | 7,583 | 31,906,343 |
Total assets | 2,324,841,403 | 1,022,842 | 0 | 23,948 | 2,961 | 7,583 | 2,325,898,737 |
Subordinated liabilities | 49,994,402 | 0 | 0 | 0 | 0 | 0 | 49,994,402 |
Insurance contract liabilities | 1,919,950,640 | 0 | 0 | 0 | 0 | 0 | 1,919,950,640 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Lease liabilities | 5,033,767 | 0 | 0 | 0 | 0 | 0 | 5,033,767 |
Other financial liabilities | 22,768 | 0 | 0 | 0 | 0 | 0 | 22,768 |
Total liabilities | 1,975,001,577 | 0 | 0 | 0 | 0 | 0 | 1,975,001,577 |
Net currency exposure | 349,839,826 | 1,022,842 | 0 | 23,948 | 2,961 | 7,583 | 350,897,160 |
* 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.
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 2024 was to
Germany amounting to EUR 254.1 million (31 December 2023: EUR 134.4 million in exposure to
the same issuer), while the Company's largest aggregate exposure to a single issuer as at 31
306
December 2024 was EUR 199.9 million also to Germany (31 December 2023: EUR 73.8 million
also to the Republic of Germany).
Geographical concentration of investments in government debt securities
in EUR | ||
Triglav Group | ||
31 Dec 2024 | 31 Dec 2023 | |
Germany | 330,322,346 | 252,626,510 |
Transnational organisations | 215,853,676 | 139,831,347 |
Slovenia | 109,246,554 | 104,591,751 |
Croatia | 90,093,396 | 88,586,259 |
France | 94,444,040 | 61,132,747 |
Other countries | 604,529,924 | 552,486,248 |
TOTAL | 1,444,489,936 | 1,199,254,862 |
in EUR | ||
Zavarovalnica Triglav | ||
31 Dec 2024 | 31 Dec 2023 adjusted | |
Germany | 257,977,758 | 159,149,707 |
Transnational organisations | 176,522,901 | 113,216,351 |
Slovenia | 84,900,976 | 81,093,326 |
France | 73,439,732 | 55,029,604 |
Spain | 69,604,798 | 58,687,104 |
Other countries | 330,948,932 | 322,554,847 |
TOTAL | 993,395,097 | 789,730,938 |
Management of market risks in 2024
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
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. 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. Its exposure to reinsurers is
measured by reinsurance contract assets 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. In addition to
assessing a credit rating, a system of uniform naming and keeping of basic data on
reinsurance partners is also important for measuring, managing and monitoring credit risks.
307
▪
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.
Exposure to credit risk by source of origin
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
| 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Assets exposed to risks from expected payments under insurance contracts | 274,561,846 | 296,123,546 | 115,942,009 | 165,481,711 |
| Assets exposed to risks from expected payments under reinsurance contracts | 318,459,843 | 365,577,477 | 240,531,160 | 328,219,374 |
Assets exposed to risks from cooperation with banks | 84,041,699 | 108,370,575 | 24,111,756 | 35,591,346 |
Total assets exposed to credit risk | 677,063,388 | 770,071,598 | 380,584,925 | 529,292,431 |
* 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.
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 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Expected premium payments | 220,898,839 | 241,074,293 | 115,942,009 | 110,898,544 |
Expected subrogation payments | 53,663,007 | 55,049,253 | 52,462,931 | 54,583,167 |
TOTAL | 274,561,846 | 296,123,546 | 168,404,940 | 165,481,711 |
308
Age structure of expected premium payments
in EUR | ||||
Gross expected payments | Triglav Group | Zavarovalnica Triglav | ||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Not due | 171,256,967 | 190,188,030 | 91,471,665 | 84,916,042 |
Overdue up to 30 days | 11,861,067 | 11,175,004 | 5,439,164 | 6,543,127 |
Overdue from 31 to 60 days | 7,667,704 | 7,456,574 | 2,440,337 | 2,758,583 |
Overdue from 61 to 90 days | 5,960,010 | 5,971,365 | 1,354,278 | 1,592,584 |
Overdue over 90 days | 24,153,091 | 26,283,320 | 15,236,565 | 15,088,208 |
TOTAL EXPECTED PAYMENTS | 220,898,839 | 241,074,293 | 115,942,009 | 110,898,544 |
Age structure of expected subrogation payments
in EUR | ||||
Gross expected payments | Triglav Group | Zavarovalnica Triglav | ||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
Not due | 912,195 | 199,246 | 236,054 | 193,883 |
Overdue up to 30 days | 746,783 | 365,952 | 724,260 | 365,324 |
Overdue from 31 to 60 days | 1,017,516 | 698,555 | 991,173 | 685,616 |
Overdue from 61 to 90 days | 1,172,239 | 1,151,802 | 1,154,820 | 1,151,134 |
Overdue over 90 days | 49,814,274 | 52,633,698 | 49,356,624 | 52,187,210 |
TOTAL EXPECTED PAYMENTS | 53,663,007 | 55,049,253 | 52,462,931 | 54,583,167 |
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 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 adjusted | |
AAA | 0.0 % | 0.0 % | 0.0 % | 0.0 % |
AA to BBB | 85.7 % | 85.0 % | 87.0% | 87.0% |
Below BBB | 5.6 % | 3.5 % | 4.1 % | 4.5% |
Not rated | 8.7 % | 11.6 % | 8.1 % | 8.5% |
Average credit rating | A | BBB | A | BBB |
The Group is most exposed to reinsurers with an "A" credit rating. The proportion of partners
with an "AA" credit rating is also high. The proportion of non-rated reinsurance partners at
Group level is 8.7%. 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. 8.1%. The improvement in the exposure distribution leads
to an increase in the average rating of the Group's and the Company's reinsurance portfolio,
rising from "BBB" to "A".
The geographical concentration of reinsurers at Group level is the highest in Luxembourg. It
changed slightly compared to 2023, though the top five exposures by country remained
unchanged. 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 2024 | 31 Dec 2023 | ||
Luxembourg | 14.0 % | Germany | 14.4% |
Germany | 13.2 % | Luxembourg | 11.0% |
United Kingdom | 9.1 % | United Kingdom | 9.5% |
Kazahstan | 8.7 % | Switzerland | 7.0% |
Switzerland | 5.7 % | Kazahstan | 6.9% |
309
Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 adjusted | ||
Slovenia | 51.8 % | Slovenia | 62.9 % |
Kazahstan | 9.7 % | Kazahstan | 9.5 % |
United Kingdom | 7.8 % | United Kingdom | 6.8 % |
Cyprus | 4.1 % | Cyprus | 3.8 % |
Russia | 3.8 % | Russia | 3.6 % |
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 an "A" and "BBB" credit ratings 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 2024, the rating of the Slovenian OTP Bank was changed
from "BBB" to "A", which slightly altered the rating structure of the Company's and the Group's
exposures.
Management of credit risks in 2024
The Group actively managed these risks by regularly monitoring all credit risk exposures. The
largest in 2024 was the decrease in exposures to reinsurers due to the activation of reinsurance
protection following unfavourable claims development in 2023. The exposures to all
counterparties in 2024 were in line with expectations. At Group level, the credit quality of
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
310
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. The Group does not carry out
securities lending techniques. Stress 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.
Exposure of the Group and the Company to liquidity risk
Assets and liabilities of the Triglav Group by contractual maturity
in EUR | ||||||||
| 31 Dec 2024 | 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 | 873,275,990 | 787,659,230 | 829,946,785 | 262,814,308 | 288,819,280 | 3,042,515,593 | 1,923,723 | 3,040,591,870 |
Insurance contract assets | 0 | -1,442,717 | 15,731,766 | 2,653,593 | -2,125,614 | 14,817,028 | -5,024,079 | 19,841,107 |
Reinsurance contract assets | 3,018,824 | 271,342,619 | 128,518,984 | 16,566,294 | 7,230,591 | 426,677,312 | 137,067,057 | 289,610,255 |
Other receivables | 2,186,230 | 43,661,228 | 449,905 | 55,837 | 0 | 46,353,200 | 1,815,000 | 44,538,200 |
Cash and cash equivalents | 68,951,079 | 0 | 0 | 0 | 0 | 68,951,079 | 0 | 68,951,079 |
Total assets | 947,432,123 | 1,101,220,360 | 974,647,440 | 282,090,032 | 293,924,257 | 3,599,314,212 | 135,781,701 | 3,463,532,511 |
Subordinated liabilities | 0 | 0 | 0 | 0 | 152,130,399 | 152,130,399 | 0 | 152,130,399 |
Insurance contract liabilities | 726,733,768 | 775,210,163 | 622,073,424 | 198,794,347 | 280,994,797 | 2,603,806,499 | 130,308,533 | 2,473,497,966 |
Reinsurance contract liabilities | 0 | 2,710,794 | 226,222 | 876,625 | 75,237 | 3,888,878 | 1,734,440 | 2,154,438 |
Lease liabilities | 1,918,777 | 4,671,399 | 7,057,832 | 696,341 | 105,628 | 14,449,977 | 3,793,287 | 10,656,690 |
Other financial liabilities | 944,823 | 394,749 | 0 | 0 | 0 | 1,339,572 | 1,022,056 | 317,516 |
Total liabilities | 729,597,368 | 782,987,105 | 629,357,478 | 200,367,313 | 433,306,061 | 2,775,615,325 | 136,858,316 | 2,638,757,009 |
* 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.
311
in EUR | ||||||||
| 31 Dec 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 | 0 | 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.
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 Dec 2024 | Not defined | < 1 year | 1 – 5 years | 5 – 10 years | > 10 years | Total |
Financial investments | 798,533,222 | 498,104,672 | 526,956,027 | 169,516,385 | 268,260,299 | 2,261,370,605 |
Insurance contract assets | 0 | -1,732,079 | 15,642,067 | 2,647,852 | -2,125,693 | 14,432,147 |
Reinsurance contract assets | 0 | 148,813,526 | 83,043,057 | 10,620,247 | 6,984,405 | 249,461,236 |
Other receivables | 0 | 27,415,351 | 338,552 | 0 | 0 | 27,753,903 |
Cash and cash equivalents | 18,165,321 | 0 | 0 | 0 | 0 | 18,165,321 |
Total assets | 816,698,543 | 672,601,470 | 625,979,703 | 182,784,483 | 273,119,011 | 2,571,183,212 |
Subordinated liabilities | 0 | 0 | 0 | 0 | 152,130,399 | 152,130,399 |
Insurance contract liabilities | 686,253,259 | 504,772,395 | 393,522,318 | 137,542,537 | 260,523,190 | 1,982,613,699 |
Reinsurance contract liabilities | 0 | 272,654 | 16,735 | 65,804 | 74,432 | 429,625 |
Lease liabilities | 0 | 1,354,335 | 2,478,514 | 469,948 | 0 | 4,302,797 |
Other financial liabilities | 0 | 69,430 | 0 | 0 | 0 | 69,430 |
Total liabilities | 686,253,259 | 506,468,814 | 396,017,567 | 138,078,289 | 412,728,021 | 2,139,545,950 |
* 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.
312
31 Dec 2023
adjusted
in EUR | ||||||
Not defined | < 1 year | 1 – 5 years | 5 – 10 years | > 10 years | Total | |
Financial investments | 631,587,976 | 258,849,064 | 675,340,388 | 168,693,312 | 221,176,739 | 1,955,647,480 |
Insurance contract assets | 0 | -2,026,512 | 8,481,341 | 3,708,863 | 796,034 | 10,959,726 |
Reinsurance contract assets | 0 | 180,561,924 | 118,503,433 | 5,621,324 | 2,250,009 | 306,936,690 |
Other receivables | 0 | 20,125,130 | 323,368 | 0 | 0 | 20,448,498 |
Cash and cash equivalents | 0 | 31,906,343 | 0 | 0 | 0 | 31,906,343 |
Total assets | 631,587,976 | 489,415,949 | 802,648,531 | 178,023,500 | 224,222,782 | 2,325,898,737 |
Subordinated liabilities | 0 | 0 | 0 | 0 | 49,994,402 | 49,994,402 |
Insurance contract liabilities | 565,058,237 | 520,779,727 | 425,969,934 | 130,380,717 | 277,762,025 | 1,919,950,640 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
Lease liabilities | 0 | 1,743,026 | 2,801,656 | 489,085 | 0 | 5,033,767 |
Other financial liabilities | 0 | 22,768 | 0 | 0 | 0 | 22,768 |
Total liabilities | 565,058,237 | 522,545,521 | 428,771,590 | 130,869,802 | 327,756,427 | 1,975,001,577 |
* 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 2024
In the reporting year, the Company regularly monitored and managed liquidity risk to maintain
an optimal liquidity level, taking into account the assessed liquidity level. This approach ensured
that liquidity risk remained low at all times. In fact, investment policies aim to ensure a high
volume of liquid securities.
In 2024, 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
2.8.2.6
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 damage, quickly and
effectively address the consequences of realised operational loss events, as well as mitigate and
prevent operational losses in a professional, diligent and ethical manner. Here, the greatest
emphasis is placed on key business processes and the groups 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. The GRC/IRM software (Governance, Risk,
Compliance/Integrated Risk Management) is used to collect and manage data as well as report
313
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 a key role in
monitoring operational risks. It addresses any identified material risks, whether potential or
realised, and takes additional action as needed. 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.
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 2024
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.
2.8.2.7
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
314
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. 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.
▪
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
are divided into physical risks and transition risks. Physical risks are the
risks of a financial loss due to extreme weather events or other environmental impacts related
to climate change. Transition risk is associated with risks arising from changes in business or
the environment, due to measures to promote the transition to a low-carbon economy in
order to reduce the human impact on climate change.
Social risks
mainly include risks arising from the way the Company and the Group companies
operate in relation to the requirements of the wider social environment, In particular ensuring
diversity and equal opportunities for various stakeholders, safety, health and satisfaction of
employees, and good relations with clients, suppliers and outsourcers.
Governance risks
are associated with an inappropriately or inadequately established
governance system, especially in the field of environmental and social aspects.
They include
the legality of 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.
315
Non-financial risks are risks that, due to their nature, cannot be reduced, addressed or mitigated
with dedicated capital. They are also not included in the regulatory risk assessment.
Management of non-financial risks in 2024
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, including climate
change risks, continue to be the most material among sustainability risks for the Group. They
were particularly carefully examined in the framework of own risk and solvency assessment. In
order to assess climate risks, including both transition 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. The climate risk assessment was further enhanced
with an assessment of nature-related risks, specifically biodiversity risks.
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 new subordinated bond, which is taken into account in
the calculation of capital adequacy.
The Group's target capital adequacy is defined as ranging between 200 and 250 percent. 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
316
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.
In 2024, following the merger of the subsidiary Triglav, Zdravstvena zavarovalnica d.d., there was
a change in the business segments for which the Company's management separately monitors
business results and makes decisions on the allocation of resources.
In 2024, these business segments were non-life insurance, life insurance, health insurance and
asset management.
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.
Assets and liabilities are allocated directly to each segment and are already kept separately in
317
2.9.1
Triglav Group business segments
in EUR | |||||
Statement of financial position | 31 Dec 2024 | ||||
| NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL (before eliminations between segments) | |
ASSETS | 2,085,654,371 | 1,610,216,865 | 36,701,781 | 906,913,832 | 4,639,486,849 |
Property, plant and equipment | 93,893,269 | 10,079,509 | 659,534 | 1,234,873 | 105,867,185 |
Investment property | 69,219,906 | 1,191,467 | 0 | 0 | 70,411,373 |
Right-of-use assets | 9,431,262 | 228,834 | 250,552 | 141,095 | 10,051,743 |
Intangible assets and goodwill | 25,000,036 | 6,588,301 | 69,430 | 21,704,145 | 53,361,912 |
Deferred tax assets | 8,973,220 | 5,215,407 | 0 | 50,878 | 14,239,505 |
Investments in subsidiaries | 55,059,388 | 0 | 0 | 561,985 | 55,621,373 |
Investments in associates and joint ventures | 1,362,496,683 | 1,547,810,030 | 20,862,673 | 109,422,484 | 3,040,591,870 |
Financial investments | 1,218,575,713 | 622,696,930 | 20,862,673 | 49,425,069 | 1,911,560,385 |
– at fair value through other comprehensive income | 30,339,550 | 175,099,131 | 0 | 17,129,756 | 222,568,437 |
– at amortised cost | 113,581,420 | 750,013,969 | 0 | 42,867,659 | 906,463,048 |
– at fair value through profit or loss | 0 | 0 | 0 | 755,007,158 | 755,007,158 |
Financial contract assets | 0 | 0 | 0 | 245,995,862 | 245,995,862 |
– investments at amortised cost | 0 | 0 | 0 | 493,515,077 | 493,515,077 |
– investments at fair value through profit or loss | 0 | 0 | 0 | 405,599 | 405,599 |
– receivables from financial contracts | 0 | 0 | 0 | 15,090,620 | 15,090,620 |
– cash from financial contracts | 5,608,761 | 13,951,277 | 281,069 | 0 | 19,841,107 |
Insurance contract assets | 289,242,833 | 355,332 | 12,090 | 0 | 289,610,255 |
Reinsurance contract assets | 49,390 | 0 | 0 | 0 | 49,390 |
Non-current assets held for sale | 260,573 | 0 | 0 | 0 | 260,573 |
Current corporate income tax assets | 126,838,501 | 2,087,390 | 11,407,414 | 5,361,209 | 145,694,514 |
Other receivables | 30,872,473 | 22,012,722 | 3,023,185 | 13,042,699 | 68,951,079 |
Cash and cash equivalents | 8,708,076 | 696,596 | 135,834 | 387,306 | 9,927,812 |
EQUITY AND LIABILITIES | 2,085,654,371 | 1,610,216,865 | 36,701,781 | 906,913,832 | 4,639,486,849 |
Equity | 748,274,867 | 157,809,495 | 9,761,544 | 73,196,300 | 989,042,206 |
Controlling interests | 745,193,786 | 158,358,484 | 9,761,544 | 71,572,847 | 984,886,661 |
– share capital | 51,340,540 | 22,360,852 | 0 | 0 | 73,701,392 |
– share premium | 36,405,639 | 13,635,792 | 15,192 | 265,956 | 50,322,579 |
– reserves from profit | 364,680 | 0 | 0 | 0 | 364,680 |
– treasury share reserves | -364,680 | 0 | 0 | 0 | -364,680 |
– treasury shares | 503,304,466 | 46,529,492 | 34 | 11,113,911 | 560,947,903 |
– accumulated other comprehensive income | -16,719,874 | -15,343,937 | -18,185 | 828,696 | -31,253,300 |
– retained earnings from previous years | 140,175,350 | 67,822,943 | -465,692 | 51,661,166 | 259,193,767 |
– net profit or loss for the year | 32,648,925 | 24,334,943 | 10,230,195 | 7,834,969 | 75,049,032 |
– translation differences | -1,961,260 | -981,601 | 0 | -131,851 | -3,074,712 |
Non-controlling interests | 3,081,081 | -548,989 | 0 | 1,623,453 | 4,155,545 |
Subordinated liabilities | 152,130,399 | 0 | 0 | 0 | 152,130,399 |
Deferred tax liabilities | 692,384 | 1,242,512 | 1,835 | 275,674 | 2,212,405 |
Financial contract liabilities | 0 | 0 | 0 | 755,007,158 | 755,007,158 |
Insurance contract liabilities | 1,040,917,066 | 1,418,850,442 | 13,730,458 | 0 | 2,473,497,966 |
Reinsurance contract liabilities | 1,838,849 | 8,336 | 307,253 | 0 | 2,154,438 |
Provisions | 19,722,249 | 2,710,816 | 35,151 | 3,527,915 | 25,996,131 |
Lease liabilities | 10,038,318 | 228,027 | 254,822 | 135,523 | 10,656,690 |
Other financial liabilities | 297,020 | 20,379 | 0 | 117 | 317,516 |
Current corporate income tax liabilities | 4,512,730 | 205,029 | 86,045 | 829,441 | 5,633,245 |
Other liabilities | 107,230,489 | 29,141,829 | 12,524,673 | 73,941,704 | 222,838,695 |
318
in EUR | |||||
Statement of financial position | 31 Dec 2023 | ||||
| NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL (before eliminations between segments ) | |
ASSETS | 1,836,512,187 | 1,492,386,826 | 78,664,647 | 815,061,910 | 4,222,625,570 |
Property, plant and equipment | 95,171,886 | 9,708,710 | 533,945 | 1,414,268 | 106,828,809 |
Investment property | 66,639,912 | 1,313,861 | 0 | 0 | 67,953,773 |
Right-of-use assets | 10,496,063 | 177,355 | 299,599 | 140,432 | 11,113,449 |
Intangible assets and goodwill | 27,956,815 | 6,507,973 | 163,028 | 20,028,490 | 54,656,306 |
Deferred tax assets | 12,859,999 | 2,823,227 | 6,278,596 | 5,726 | 21,967,548 |
Investments in subsidiaries | 37,218,841 | 0 | 0 | 489,221 | 37,708,062 |
Investments in associates and joint ventures | 1,046,023,574 | 1,428,125,972 | 65,546,191 | 103,145,033 | 2,642,840,770 |
Financial investments | 920,752,335 | 651,116,719 | 65,546,191 | 35,551,687 | 1,672,966,932 |
– at fair value through other comprehensive income | 33,075,932 | 175,921,558 | 0 | 20,562,237 | 229,559,727 |
– at amortised cost | 92,195,307 | 601,087,695 | 0 | 47,031,109 | 740,314,111 |
– at fair value through profit or loss | 0 | 0 | 0 | 674,115,145 | 674,115,145 |
Financial contract assets | 0 | 0 | 0 | 283,215,425 | 283,215,425 |
– investments at amortised cost | 0 | 0 | 0 | 366,826,746 | 366,826,746 |
– investments at fair value through profit or loss | 0 | 0 | 0 | 123,066 | 123,066 |
– receivables from financial contracts | 0 | 0 | 0 | 23,949,908 | 23,949,908 |
– cash from financial contracts | 1,858,700 | 10,234,160 | 1,018 | 0 | 12,093,878 |
Insurance contract assets | 327,123,674 | 387,756 | 221,725 | 0 | 327,733,155 |
Reinsurance contract assets | 432,748 | 0 | 1,141,578 | 1,555,383 | 3,129,709 |
Non-current assets held for sale | 8,491,524 | 0 | 0 | 0 | 8,491,524 |
Current corporate income tax assets | 148,600,030 | 2,551,228 | 2,179,210 | 7,910,406 | 161,240,874 |
Other receivables | 46,349,730 | 29,822,552 | 2,231,347 | 6,017,038 | 84,420,667 |
Cash and cash equivalents | 7,288,691 | 734,032 | 68,410 | 240,768 | 8,331,901 |
EQUITY AND LIABILITIES | 1,836,512,187 | 1,492,386,826 | 78,664,647 | 815,061,910 | 4,222,625,570 |
Equity | 682,884,863 | 134,080,298 | -2,844,957 | 76,979,779 | 891,099,983 |
Controlling interests | 680,175,218 | 134,635,417 | -2,844,957 | 75,450,052 | 887,415,730 |
– share capital | 51,340,540,00 | 22,360,852,00 | 0 | 0 | 73,701,392 |
– share premium | 36,420,831 | 13,635,792 | 0 | 265,956 | 50,322,579 |
– reserves from profit | 364,680 | 0 | 0 | 0 | 364,680 |
– treasury share reserves | -364,680 | 0 | 0 | 0 | -364,680 |
– treasury shares | 452,450,505 | 46,529,492 | 1,853,961 | 4,269,024 | 505,102,982 |
– accumulated other comprehensive income | -28,346,492 | -8,420,843 | -472,831 | -175,817 | -37,415,983 |
– retained earnings from previous years | 178,775,250 | 47,179,410 | 21,878,523 | 58,258,765 | 306,091,948 |
– net profit or loss for the year | -8,409,299 | 14,357,563 | -26,104,946 | 12,964,144 | -7,192,538 |
– translation differences | -2,056,117 | -1,006,849 | 336 | -132,020 | -3,194,650 |
Non-controlling interests | 2,709,645 | -555,119 | 0 | 1,529,727 | 3,684,253 |
Subordinated liabilities | 49,994,402 | 0 | 0 | 0 | 49,994,402 |
Deferred tax liabilities | 1,061,324 | 428,118 | 0 | 376,368 | 1,865,810 |
Financial contract liabilities | 0 | 0 | 0 | 674,115,145 | 674,115,145 |
Insurance contract liabilities | 977,467,204 | 1,315,940,347 | 37,240,054 | 0 | 2,330,647,605 |
Reinsurance contract liabilities | 6,368,274 | 3,246 | 89,080 | 0 | 6,460,600 |
Provisions | 20,955,698 | 2,525,981 | 1,699,744 | 5,166,062 | 30,347,485 |
Lease liabilities | 11,053,625 | 169,451 | 301,180 | 141,077 | 11,665,333 |
Other financial liabilities | 640,258 | 22,283 | 0 | 901 | 663,442 |
Current corporate income tax liabilities | 0 | 113,793 | 9,319 | 448,443 | 571,555 |
Other liabilities | 86,086,539 | 39,103,309 | 42,170,227 | 57,834,135 | 225,194,210 |
in EUR | ||
31 Dec 2024 | 31 Dec 2023 | |
Balance sheet total before intersegment elimination | 4,639,486,849 | 4,222,625,570 |
Intersegment receivables and liabilities | -101,156,314 | -123,596,871 |
Offset balance | 4,538,330,535 | 4,099,028,699 |
319
in EUR | |||||||
Statement of profit or loss and other comprehensive income | 2024 | ||||||
| NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL | DISCONTINUED OPERATIONS | TOTAL continuing operations | |
Insurance service result | 130,821,464 | 32,447,583 | 1,938,740 | 0 | 165,207,787 | 5,539,544 | 159,668,243 |
– insurance income | 1,156,299,596 | 98,399,942 | 43,252,835 | 0 | 1,297,952,373 | 52,453 | 1,297,899,920 |
– insurance service expenses | -885,519,420 | -66,224,365 | -40,069,884 | 0 | -991,813,669 | 5,487,091 | -997,300,760 |
– net reinsurance service result | -139,958,712 | 272,006 | -1,244,211 | 0 | -140,930,917 | 0 | -140,930,917 |
Investment result | 33,807,735 | 121,112,814 | 1,452,206 | 3,373,821 | 159,746,576 | 0 | 159,746,576 |
– interest income calculated using the effective interest method | 25,666,852 | 18,997,723 | 1,215,235 | 1,406,886 | 47,286,696 | 0 | 47,286,696 |
– dividend income | 2,244,992 | 275,497 | 1,311 | 78,068 | 2,599,868 | 0 | 2,599,868 |
– net gains and losses on financial investments | 2,342,643 | 99,542,504 | -300,753 | 1,875,578 | 103,459,972 | 0 | 103,459,972 |
– net impairment and reversal of impairment of financial investments | 1,808,219 | 1,057,740 | 477,849 | -9,538 | 3,334,270 | 0 | 3,334,270 |
– other effects of investing activities | 1,745,029 | 1,239,350 | 58,564 | 22,827 | 3,065,770 | 0 | 3,065,770 |
Financial result from insurance contracts | -7,747,515 | -110,589,731 | -204,287 | 0 | -118,541,533 | -113,374 | -118,428,159 |
– financial result from insurance contracts | -14,283,689 | -110,595,193 | -225,567 | 0 | -125,104,449 | -113,374 | -124,991,075 |
– financial result from reinsurance contracts | 6,536,174 | 5,462 | 21,280 | 0 | 6,562,916 | 0 | 6,562,916 |
Income from asset management | 0 | 0 | 0 | 49,364,063 | 49,364,063 | 0 | 49,364,063 |
Non-attributable operating expenses | -54,380,124 | -9,189,821 | -2,157,319 | -35,460,567 | -101,187,831 | -236,860 | -100,950,971 |
Net other operating income and expenses | -2,377,445 | -3,494,757 | -1,950,182 | -375,854 | -8,198,238 | -59,651 | -8,138,587 |
Net other financial income and expenses | -7,155,755 | -64,324 | -74,373 | -9,996 | -7,304,448 | -4,030 | -7,300,418 |
Net impairment and reversal of impairment of non-financial assets | -66,398 | 0 | 0 | 0 | -66,398 | 0 | -66,398 |
Gains and losses on investments in associates | 6,871,440 | 0 | 0 | 72,763 | 6,944,203 | 0 | 6,944,203 |
Net other income and expenses | 1,057,896 | 115,914 | 11,336,083 | 568,127 | 13,078,020 | 11,022,075 | 2,055,945 |
Earnings before tax | 100,831,298 | 30,337,678 | 10,340,868 | 17,532,357 | 159,042,201 | 16,147,704 | 142,894,497 |
Tax expense | -18,818,174 | -5,979,003 | -110,640 | -2,716,271 | -27,624,088 | 0 | -27,624,088 |
TOTAL NET EARNINGS FOR THE PERIOD | 82,013,124 | 24,358,675 | 10,230,228 | 14,816,086 | 131,418,113 | 16,147,704 | 115,270,409 |
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX | 11,764,257 | -7,090,990 | 632,528 | 1,004,788 | 6,310,583 | -2,979 | 6,313,562 |
320
in EUR | |||||||
Statement of profit or loss and other comprehensive income | 2023 | ||||||
| NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL | DISCONTINUED OPERATIONS | TOTAL continuing operations | |
Insurance service result | 58,186,739 | 27,210,040 | -25,859,802 | 0 | 59,536,977 | -22,680,225 | 82,217,202 |
– insurance income | 1,042,646,914 | 85,367,869 | 223,171,882 | 0 | 1,351,186,665 | 193,275,962 | 1,157,910,703 |
– insurance service expenses | -1,014,162,211 | -59,777,022 | -249,317,025 | 0 | -1,323,256,258 | -215,956,187 | -1,107,300,071 |
– net reinsurance service result | 29,702,036 | 1,619,193 | 285,341 | 0 | 31,606,570 | 0 | 31,606,570 |
Investment result | 15,967,165 | 66,648,694 | -2,814,914 | 4,030,242 | 83,831,187 | -2,725,611 | 86,556,798 |
– interest income calculated using the effective interest method | 16,436,735 | 16,834,901 | 734,847 | 1,091,814 | 35,098,297 | 176,237 | 34,922,060 |
– dividend income | 2,022,129 | 590,546 | 0 | 92,389 | 2,705,064 | 0 | 2,705,064 |
– net gains and losses on financial investments | -853,754 | 48,241,347 | -3,749,045 | 2,767,519 | 46,406,067 | -3,031,559 | 49,437,626 |
– net impairment and reversal of impairment of financial investments | 1,318,266 | 767,278 | 198,524 | 7,690 | 2,291,758 | 128,858 | 2,162,900 |
– other effects of investing activities | -2,956,211 | 214,622 | 760 | 70,830 | -2,669,999 | 853 | -2,670,852 |
Financial result from insurance contracts | -4,840,616 | -64,706,573 | -130,746 | 0 | -69,677,935 | -80,813 | -69,597,122 |
– financial result from insurance contracts | -4,884,509 | -64,713,983 | -144,962 | 0 | -69,743,454 | -80,813 | -69,662,641 |
– financial result from reinsurance contracts | 43,893 | 7,410 | 14,216 | 0 | 65,519 | 0 | 65,519 |
Income from asset management | 0 | 0 | 0 | 39,685,486 | 39,685,486 | 0 | 39,685,486 |
Non-attributable operating expenses | -52,960,155 | -7,489,065 | -1,950,332 | -30,768,917 | -93,168,469 | -2,043,895 | -91,124,574 |
Net other operating income and expenses | 1,216,028 | -3,046,463 | 4,240 | 3,326,742 | 1,500,547 | 449,474 | 1,051,073 |
Net other financial income and expenses | -3,666,106 | -22,412 | 12,270 | -15,262 | -3,691,510 | -11,357 | -3,680,153 |
Net impairment and reversal of impairment of non-financial assets | -2,501,482 | -14,034 | 0 | 0 | -2,515,516 | 0 | -2,515,516 |
Gains and losses on investments in associates | 2,194,361 | 0 | 0 | 48,574 | 2,242,935 | 0 | 2,242,935 |
Net other income and expenses | 952,179 | 363,918 | -673,921 | 2,674,559 | 3,316,735 | -683,441 | 4,000,176 |
Earnings before tax | 14,548,113 | 18,944,105 | -31,413,205 | 18,981,424 | 21,060,437 | -27,775,868 | 48,836,305 |
Tax expense | -3,763,817 | -4,562,328 | 5,308,259 | -1,777,356 | -4,795,242 | 5,503,377 | -10,298,619 |
TOTAL NET EARNINGS FOR THE PERIOD | 10,784,296 | 14,381,777 | -26,104,946 | 17,204,068 | 16,265,195 | -22,272,491 | 38,537,686 |
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX | 18,861,509 | 10,317,358 | 4,505,995 | 986,670 | 34,671,532 | 1,545,820 | 33,125,712 |
321
2.9.2
Zavarovalnica Triglav business segments
In accordance with the requirements of the Decision on annual reports and quarterly financial
statements of insurance undertakings (Official Gazette of the Republic of Slovenia, No.
101/2024), the Company's operations are described by specific business segments.
in EUR | |||||
Statement of financial position | 31 Dec 2024 | ||||
| NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL (before eliminations between segments) | |
ASSETS | 1,540,466,794 | 1,430,159,485 | 23,873,487 | 290,972,541 | 3,285,472,306 |
Property, plant and equipment | 58,487,630 | 7,387,839 | 185,045 | 0 | 66,060,514 |
Investment property | 44,791,506 | 179,639 | 0 | 0 | 44,971,145 |
Right-of-use assets | 4,106,670 | 0 | 12,379 | 0 | 4,119,049 |
Intangible assets and goodwill | 21,852,624 | 6,532,989 | 65,709 | 0 | 28,451,322 |
Deferred tax assets | 8,302,797 | 4,494,027 | 0 | 0 | 12,796,824 |
Investments in subsidiaries | 178,854,111 | 17,770,346 | 0 | 0 | 196,624,457 |
Investments in associates and joint ventures | 55,059,388 | 0 | 0 | 0 | 55,059,388 |
Financial investments | 880,763,577 | 1,365,794,724 | 14,812,304 | 0 | 2,261,370,605 |
– at fair value through other comprehensive income | 773,542,961 | 513,378,853 | 14,812,304 | 0 | 1,301,734,118 |
– at amortised cost | 5,255,656 | 138,620,164 | 0 | 0 | 143,875,820 |
– at fair value through profit or loss | 101,964,961 | 713,795,707 | 0 | 0 | 815,760,668 |
Financial contract assets | 0 | 0 | 0 | 290,843,831 | 290,843,831 |
– investments at amortised cost | 0 | 0 | 0 | 77,040,080 | 77,040,080 |
– investments at fair value through profit or loss | 0 | 0 | 0 | 207,542,830 | 207,542,830 |
– receivables from financial contracts | 0 | 0 | 0 | 314,486 | 314,486 |
– cash from financial contracts | 0 | 0 | 0 | 5,946,434 | 5,946,434 |
Insurance contract assets | 449,920 | 13,920,027 | 62,200 | 0 | 14,432,147 |
Reinsurance contract assets | 249,449,146 | 0 | 12,090 | 0 | 249,461,236 |
Other receivables | 27,182,242 | 4,472,077 | 7,613,813 | 128,710 | 39,396,842 |
Cash and cash equivalents | 7,550,471 | 9,504,903 | 1,109,947 | 0 | 18,165,321 |
Other assets | 3,616,711 | 102,914 | 0 | 0 | 3,719,625 |
EQUITY AND LIABILITIES | 1,540,466,793 | 1,430,159,485 | 23,873,487 | 290,972,541 | 3,285,472,306 |
Equity | 602,733,082 | 125,698,285 | 13,082,662 | 128,710 | 741,642,738 |
Controlling interests | 51,340,540 | 22,360,852 | 0 | 0 | 73,701,392 |
– share capital | 40,344,977 | 13,067,907 | 0 | 0 | 53,412,884 |
– share premium | 489,102,713 | 45,513,891 | 0 | 0 | 534,616,604 |
– reserves from profit | -12,677,163 | -16,780,786 | -60,846 | 0 | -29,518,795 |
– treasury share reserves | 19,261,769 | 40,936,987 | 0 | 0 | 60,198,756 |
– treasury shares | 15,360,245 | 20,599,434 | 13,143,508 | 128,710 | 49,231,897 |
Non-controlling interests | 152,130,399 | 0 | 0 | 0 | 152,130,399 |
Subordinated liabilities | 0 | 0 | 0 | 290,843,831 | 290,843,831 |
Deferred tax liabilities | 688,991,220 | 1,285,942,391 | 7,680,088 | 0 | 1,982,613,699 |
Financial contract liabilities | 421,289 | 8,336 | 0 | 0 | 429,625 |
Insurance contract liabilities | 12,413,767 | 2,464,627 | 0 | 0 | 14,878,394 |
Reinsurance contract liabilities | 4,289,298 | 0 | 13,499 | 0 | 4,302,797 |
Provisions | 69,430 | 0 | 0 | 0 | 69,430 |
Lease liabilities | 2,360,480 | 0 | 0 | 0 | 2,360,480 |
Other financial liabilities | 77,057,829 | 16,045,846 | 3,097,238 | 0 | 96,200,913 |
322
in EUR | |||||
Statement of financial position | 31 Dec 2023 | ||||
| NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL (before eliminations between segments) | |
ASSETS | 1,403,338,566 | 1,331,082,262 | 76,410,969 | 264,181,801 | 3,075,013,598 |
Property, plant and equipment | 60,764,600 | 7,844,878 | 243,629 | 0 | 68,853,107 |
Investment property | 43,152,887 | 274,294 | 0 | 0 | 43,427,181 |
Right-of-use assets | 4,356,487 | 0 | 456,896 | 0 | 4,813,383 |
Intangible assets and goodwill | 24,441,317 | 6,437,832 | 160,130 | 0 | 31,039,279 |
Deferred tax assets | 10,071,867 | 2,816,255 | 6,278,596 | 0 | 19,166,719 |
Investments in subsidiaries | 175,354,112 | 17,770,346 | 2,500,000 | 0 | 195,624,458 |
Investments in associates and joint ventures | 37,218,841 | 0 | 0 | 0 | 37,218,841 |
Financial investments | 628,013,042 | 1,265,041,138 | 62,593,300 | 0 | 1,955,647,481 |
– at fair value through other comprehensive income | 541,324,405 | 557,262,083 | 62,593,300 | 0 | 1,161,179,788 |
– at amortised cost | 4,673,512 | 138,169,794 | 0 | 0 | 142,843,306 |
– at fair value through profit or loss | 82,015,125 | 569,609,261 | 0 | 0 | 651,624,386 |
Financial contract assets | 0 | 0 | 0 | 259,624,041 | 259,624,041 |
– investments at amortised cost | 0 | 0 | 0 | 86,215,285 | 86,215,285 |
– investments at fair value through profit or loss | 0 | 0 | 0 | 169,625,986 | 169,625,986 |
– receivables from financial contracts | 0 | 0 | 0 | 83,130 | 83,130 |
– cash from financial contracts | 0 | 0 | 0 | 3,699,640 | 3,699,640 |
Insurance contract assets | 763,841 | 10,194,985 | 900 | 0 | 10,959,726 |
Reinsurance contract assets | 305,976,870 | 0 | 959,820 | 0 | 306,936,690 |
Non-current assets held for sale | 0 | 0 | 1,141,578 | 0 | 1,141,578 |
Current corporate income tax assets | 9,302,529 | 0 | 0 | 0 | 9,302,529 |
Other receivables | 88,711,311 | 1,488,778 | 1,785,563 | 4,557,760 | 96,543,412 |
Denar in denarni ustrezniki | 12,536,521 | 19,145,012 | 224,810 | 0 | 31,906,343 |
Druga sredstva | 2,674,341 | 68,743 | 65,747 | 0 | 2,808,831 |
EQUITY AND LIABILITIES | 1,403,338,566 | 1,331,082,262 | 76,410,970 | 264,181,801 | 3,075,013,598 |
Equity | 591,214,222 | 111,490,183 | -24,735,908 | 4,557,760 | 682,526,257 |
Controlling interests | 51,340,540 | 22,360,852 | 0 | 0 | 73,701,392 |
– share capital | 40,344,977 | 13,067,907 | 0 | 0 | 53,412,884 |
– share premium | 440,102,713 | 45,513,891 | 0 | 0 | 485,616,604 |
– reserves from profit | -19,849,347 | -9,828,743 | -475,183 | 0 | -30,153,273 |
– treasury share reserves | 79,128,333 | 25,602,561 | 0 | 0 | 104,730,894 |
– treasury shares | 147,006 | 14,773,715 | -24,260,726 | 4,557,760 | -4,782,244 |
Non-controlling interests | 49,994,402 | 0 | 0 | 0 | 49,994,402 |
Subordinated liabilities | 0 | 0 | 0 | 259,624,041 | 259,624,041 |
Deferred tax liabilities | 688,581,224 | 1,197,093,666 | 34,275,749 | 0 | 1,919,950,640 |
Financial contract liabilities | 11,993,826 | 2,329,680 | 1,699,744 | 0 | 16,023,250 |
Insurance contract liabilities | 4,573,011 | 0 | 460,757 | 0 | 5,033,767 |
Reinsurance contract liabilities | 22,763 | 5 | 0 | 0 | 22,768 |
Provisions | 56,959,118 | 20,168,727 | 64,710,629 | 0 | 141,838,474 |
All items disclosed in the statement of financial position by business segment are not offset. The
amount of the balance sheet total after offsetting is shown below.
v EUR | ||
31 Dec 2024 | 31 Dec 2023 adjusted | |
Balance sheet total before intersegment elimination | 3,285,472,306 | 3,075,013,598 |
Intersegment receivables and liabilities | -11,642,939 | -76,094,914 |
Offset balance | 3,273,829,367 | 2,998,918,684 |
323
in EUR | |||||||
Statement of profit or loss and other comprehensive income | 2024 | ||||||
NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL | DISCONTINUED OPERATIONS | TOTAL continuing operations | |
Insurance service result | 100,146,976 | 29,795,216 | 4,752,277 | 0 | 134,694,469 | 5,539,543 | 129,154,926 |
– insurance income | 811,017,891 | 76,553,208 | 23,532,720 | 0 | 911,103,819 | 52,453 | 911,051,366 |
– insurance service expenses | -580,824,306 | -46,652,230 | -18,275,715 | 0 | -645,752,251 | 5,487,091 | -651,239,341 |
– net reinsurance service result | -130,046,609 | -105,762 | -504,728 | 0 | -130,657,099 | 0 | -130,657,099 |
Investment result | 19,014,220 | 114,508,388 | 1,338,705 | 0 | 134,861,313 | 0 | 134,861,313 |
– interest income calculated using the effective interest method | 12,882,506 | 15,099,991 | 1,088,269 | 0 | 29,070,766 | 0 | 29,070,766 |
– dividend income | 1,745,076 | 274,619 | 0 | 0 | 2,019,695 | 0 | 2,019,695 |
– net gains and losses on financial investments | 2,447,986 | 96,592,920 | -282,756 | 0 | 98,758,150 | 0 | 98,758,150 |
– net impairment and reversal of impairment of financial investments | 920,622 | 1,358,747 | 475,629 | 0 | 2,754,998 | 0 | 2,754,998 |
– other effects of investing activities | 1,018,030 | 1,182,111 | 57,563 | 0 | 2,257,704 | 0 | 2,257,704 |
Financial result from insurance contracts | -3,099,164 | -106,866,151 | -163,497 | 0 | -110,128,812 | -113,374 | -110,015,438 |
– financial result from insurance contracts | -8,812,263 | -106,867,372 | -182,592 | 0 | -115,862,227 | -113,374 | -115,748,853 |
– financial result from reinsurance contracts | 5,713,099 | 1,221 | 19,095 | 0 | 5,733,415 | 0 | 5,733,415 |
Income from asset management | 0 | 0 | 0 | 3,158,050 | 3,158,050 | 0 | 3,158,050 |
Non-attributable operating expenses | -31,086,710 | -8,064,502 | -1,934,117 | -2,881,923 | -43,967,252 | -236,860 | -43,730,392 |
Net other operating income and expenses | -10,431,995 | -3,113,303 | -2,228,627 | -147,417 | -15,921,342 | -59,651 | -15,861,691 |
Net other financial income and expenses | -6,769,795 | -172,584 | -68,450 | 0 | -7,010,829 | -4,030 | -7,006,800 |
Net impairment and reversal of impairment of non-financial assets | -66,111 | 0 | 0 | 0 | -66,111 | 0 | -66,111 |
Gains and losses on investments in associates | 9,098,991 | 0 | 0 | 0 | 9,098,991 | 0 | 9,098,991 |
Net other income and expenses | 1,259,945 | 158,821 | 11,447,217 | 0 | 12,865,983 | 11,022,074 | 1,843,909 |
Earnings before tax | 78,066,357 | 26,245,885 | 13,143,508 | 128,710 | 117,584,460 | 16,147,704 | 101,436,756 |
Tax expense | -13,706,112 | -5,646,451 | 0 | 0 | -19,352,563 | 0 | -19,352,563 |
TOTAL NET EARNINGS FOR THE PERIOD | 64,360,245 | 20,599,434 | 13,143,508 | 128,710 | 98,231,897 | 16,147,704 | 82,084,193 |
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX | 7,166,094 | -7,127,528 | 632,528 | 0 | 671,094 | -2,979 | 674,073 |
in EUR | |||||||
Statement of profit or loss and other comprehensive income | 2023 | ||||||
| NON-LIFE | LIFE | HEALTH | ASSET MANAGEMENT | TOTAL | DISCONTINUED OPERATIONS | TOTAL continuing operations | |
Insurance service result | 37,125,734 | 23,968,846 | -24,452,883 | 0 | 36,641,696 | -22,680,223 | 59,321,919 |
– insurance income | 709,194,358 | 66,444,361 | 209,957,144 | 0 | 985,595,863 | 193,275,962 | 792,319,901 |
– insurance service expenses | -711,516,270 | -42,475,515 | -234,491,840 | 0 | -988,483,626 | -215,956,185 | -772,527,441 |
– net reinsurance service result | 39,447,646 | 0 | 81,814 | 0 | 39,529,460 | 0 | 39,529,459 |
Investment result | 9,428,053 | 60,532,202 | -2,864,611 | 0 | 67,095,644 | -2,725,610 | 69,821,254 |
– interest income calculated using the effective interest method | 7,747,149 | 13,870,609 | 684,528 | 0 | 22,302,286 | 176,237 | 22,126,049 |
– dividend income | 1,851,785 | 589,749 | 0 | 0 | 2,441,534 | 0 | 2,441,534 |
– net gains and losses on financial investments | -723,333 | 45,255,324 | -3,744,177 | 0 | 40,787,813 | -3,031,559 | 43,819,372 |
– net impairment and reversal of impairment of financial investments | 689,654 | 607,543 | 193,705 | 0 | 1,490,902 | 128,858 | 1,362,044 |
– other effects of investing activities | -137,202 | 208,977 | 1,333 | 0 | 73,108 | 853 | 72,255 |
Financial result from insurance contracts | -2,905,419 | -59,878,679 | -92,938 | 0 | -62,877,036 | -80,813 | -62,796,223 |
– financial result from insurance contracts | -3,015,273 | -59,878,679 | -120,600 | 0 | -63,014,552 | -80,813 | -62,933,739 |
– financial result from reinsurance contracts | 109,854 | 0 | 27,662 | 0 | 137,516 | 0 | 137,516 |
Income from asset management | 0 | 0 | 0 | 2,854,726 | 2,854,726 | 0 | 2,854,726 |
Non-attributable operating expenses | -29,418,653 | -7,009,164 | -2,441,708 | -2,825,806 | -41,695,332 | -2,043,895 | -39,651,436 |
Net other operating income and expenses | -3,156,262 | -1,910,835 | 940,977 | 4,528,839 | 402,719 | 449,475 | -46,756 |
Net other financial income and expenses | -2,706,646 | -111,456 | 6,776 | 0 | -2,811,326 | -11,357 | -2,799,969 |
Net impairment and reversal of impairment of non-financial assets | -2,496,338 | -6,407 | 0 | 0 | -2502745 | 0 | -2,502,745 |
Gains and losses on investments in associates | 15,179,539 | 3,406,222 | 0 | 0 | 18,585,761 | 0 | 18,585,761 |
Net other income and expenses | 454,326 | 286,635 | -673,917 | 2 | 67,046 | -683,446 | 750,492 |
Earnings before tax | 21,504,333 | 19,277,364 | -29,578,304 | 4,557,761 | 15,761,154 | -27,775,868 | 43,537,022 |
Tax expense | -2,357,329 | -4,503,647 | 5,317,578 | 0 | -1,543,398 | 5,503,377 | -7,046,775 |
TOTAL NET EARNINGS FOR THE PERIOD | 19,147,003 | 14,773,717 | -24,260,726 | 4,557,761 | 14,217,756 | -22,272,491 | 36,490,247 |
OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX | 17,040,524 | 11,745,037 | 4,502,375 | 0 | 33,287,936 | 1,545,820 | 31,742,116 |
324
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 conditions, geopolitical risks and the effects of climate change
were the main factors that had a significant impact on the Group's and the Company's
operations in 2024, although to a significantly lesser extent than in the previous year.
Macroeconomic conditions and geopolitical tensions had a major impact on the Group's and the
Company's operations in 2024, primarily through their effects on global financial markets. In
2024, macroeconomic developments were mainly driven by declining inflation, which in the euro
area approached the target level, followed by interest rate cuts. Due to past restrictive monetary
policies, low economic growth rates were recorded in most developed economies. Financial
market trends were predominantly influenced by interest rate reductions, which in turn
influenced the required yields on debt financial instruments and the market values of these
investments. The effects of these changes mostly affected the Group's and the Company's
market risks.
Further details on these risk impacts described above are provided in Section 2.8, while the
management of these risks is discussed in greater detail in the Business Report.
Natural disasters in Slovenia and around the world impacted the Group's operations in 2024,
although to a significantly lesser extent than in the previous year. In terms of natural disasters,
2024 was characterised by hailstorms, floods and typhoons. These events primarily affected the
claims volume from insurance contracts in the Group's financial statements.
Natural disasters pose environmental risks for the Company, primarily climate physical risks.
These risks are effectively managed through adequate reinsurance protection, thereby
minimising their direct impact on the financial statements. The Group considers these risks to
be already present. In addition to the climate physical risks mentioned, climate transition risks
are also closely monitored. Climate change risks are thus managed systematically and
comprehensively. The Group recognises climate change and other environmental risks as both a
strategic challenge and an opportunity.
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.
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.
325
The amount of taxes and contributions calculated by individual type is shown below.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Insurance premium tax | 74,275,176 | 67,322,022 | 61,303,390 | 56,310,724 |
Fees from income of natural persons (employer's contributions and taxes) | 29,778,827 | 26,816,689 | 18,517,726 | 18,159,825 |
Corporate income tax | 22,731,918 | 23,713,935 | 15,865,004 | 19,388,729 |
Minimum tax | 427,032 | 0 | 427,032 | 0 |
Fire fee | 10,106,694 | 8,430,325 | 9,551,459 | 7,867,386 |
Value added tax | 6,360,858 | 5,195,391 | 2,021,551 | 2,089,425 |
Fee for the use of building land | 1,010,802 | 972,013 | 844,090 | 799,922 |
Financial services tax | 641,745 | 647,883 | 90,817 | 103,385 |
Other fees | 849,338 | 704,090 | 0 | 0 |
Total fees charged in the year | 146,182,390 | 133,802,348 | 108,621,069 | 104,719,396 |
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 (top-up) 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 impact of new or amended standards on the preparation of financial statements
2.12.1
New and amended IFRS accounting standards effective in the reporting year
During the reporting year, the Group and the Company applied several amendments to IFRS
accounting standards issued by the International Accounting Standards Board (IASB), which
became mandatory for reporting periods beginning on or after 1 January 2024.
Amendments to IAS 1 Classification of Liabilities as Current or Non-Current (issued by the IASB on
23 January 2020) and Amendments to IAS 1 Presentation of Financial Statements – Non-Current
Liabilities with Covenants (issued by the IASB on 31 October 2022)
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.
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures –
Supplier Finance Arrangements (issued by the IASB on 25 May 2023)
The amendments add disclosure requirements and "signposts" within existing disclosure
requirements to provide qualitative and quantitative information about supplier finance
arrangements.
Amendments to IFRS 16 Leases – Lease Liability in a Sale and Leaseback (issued by the IASB on 22
September 2022)
The amendments to IFRS 16 require a seller-lessee to subsequently measure lease liabilities
arising from a leaseback in a way that it does not recognise any amount of the gain or loss that
relates to the right of use it retains. The new requirements do not prevent a seller-lessee from
recognising in profit or loss any gain or loss relating to the partial or full termination of a lease.
326
The impact of new and amended IFRS on the Group's and the Company's financial statements
The new and amended IFRS accounting standards did not have a material impact on the
New and amended IFRS accounting standards adopted by the EU but not yet effective
At the date of authorisation of these financial statements, the Group and the Company have not
applied the following amended IFRS accounting standards issued by the IASB and adopted by
the EU but not yet effective.
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
(issued by the IASB on 15 August 2023, effective from 1 January 2025).
The amendments provide guidance to specify when a currency is exchangeable and how to
determine the exchange rate when it is not.
The impact of new and amended IFRS accounting standards adopted by the EU but not yet effective
on the Group's and the Company's financial statements
It is estimated that the adopted amendments to IFRS 21 will not significantly impact the
consolidated and separate financial statements of Zavarovalnica Triglav.
2.12.3
New and amended IFRS accounting standards issued by the IASB but no yet adopted by
the EU
At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the
IASB, except for the following new standards and amendments to existing standards not
endorsed by the EU on 11 March 2025.
Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments (issued
by the IASB on 30 May 2024)
The amendments clarify the classification of financial assets with environmental, social and
governance (ESG)-linked features. The amendments also clarify the derecognition date of a
financial asset or financial liability and introduce additional disclosure requirements for
investments in equity instruments designated at fair value through other comprehensive
income and disclosures relating to financial instruments with contingent features.
Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity (issued by
the IASB on 18 December 2024)
The amendments to IFRS 9 expand the own-use requirements an entity is required to consider
when applying IFRS 9:2.4 to contracts to buy and take delivery of renewable electricity for which
the source of production of the electricity is nature-dependent. The hedge accounting
requirements in IFRS 9 are amended to permit an entity using a contract for nature-dependent
renewable electricity with specified characteristics as a hedging instrument to designate a
variable volume of forecast electricity transactions as the hedged item if specified criteria are
met, and to measure the hedged item using the same volume assumptions as those used for the
hedging instrument. Amendments to IFRS 7 and IFRS 19 introduce disclosure requirements
about contracts for nature-dependent electricity with specified characteristics.
327
Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 Annual Improvements to IFRS Accounting
Standards – Volume 11 (issued by the IASB on 18 July 2024)
They include clarifications, simplifications, corrections and changes in the following areas: (a)
hedge accounting for first-time adopters (IFRS 1); (b) gain or loss on derecognition (IFRS 7); (c)
disclosure of the deferred difference between fair value and transaction price (IFRS 7); (d)
introduction and credit risk disclosures (IFRS 7); (e) lessee derecognition of lease liabilities (IFRS
9); (f) transaction price (IFRS 9); (g) determination of a 'de facto agent' (IFRS 10); (h) cost method
(IAS 7).
Standard IFRS 18 Presentation and Disclosure in Financial Statements, issued by the IASB on 9 April
2024, will be replaced by IAS 1 Presentation of Financial Statements.
The standard introduces three sets of new requirements to improve companies' reporting of
financial performance and give investors a better basis for analysing and comparing companies.
The main changes in the new standard compared with IAS 1 are: (a) the introduction of
categories (operating, investing, financing, income tax and discontinued operations) and the
inclusion of subtotals in the statement of profit or loss; (b) the introduction of requirements to
improve aggregation and disaggregation; and (c) the introduction of disclosures about
performance measures determined by management in the notes to the financial statements.
Standard IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued by the IASB on 9
May 2024)
The standard reduces disclosure requirements for subsidiaries when applying IFRS accounting
standards in their financial statements. IFRS 19 is voluntary for subsidiaries that meet the
eligibility criteria and sets out disclosure requirements for subsidiaries that elect apply it.
Standard IFRS 14 – Regulatory Deferral Accounts issued by IASB on 30 January 2014.
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 – Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture issued by IASB on 11 September 2014.
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 and amended IFRS issued but not yet adopted by the EU on the Group's and the
Company's financial statements
The management anticipates that the adoption of new and amended standards will have no
material impact on the Group's and the Company's consolidated and separate financial
328
3.
Notes to specific significant items in the financial
statements
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. 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 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.
| 31 Dec 2024 | |||||
1 year | 5 years | 10 years | 20 years | 30 years | |
Risk free yield | 2.24% | 2.14% | 2.27% | 2.26% | 2.39% |
Life Illiquidy Premium | 0.04% - 0.23% | 0.05% - 0.23% | 0.05% - 0.23% | 0.05% - 0.23% | 0.04% - 0.20% |
Risk free yield | 2.24% | 2.14% | 2.27% | 2.26% | 2.39% |
Non-Life Illiquidy Premium | 0.23% | 0.23% | 0.23% | 0.23% | 0.19% |
| 31 Dec 2023 | |||||
1 year | 5 years | 10 years | 20 years | 30 years | |
Risk free yield | 3.36% | 2.32% | 2.39% | 2.41% | 2.53% |
Life Illiquidy Premium | 0.08% - 0.33% | 0.08% - 0.33% | 0.08% - 0.33% | 0.09% - 0.35% | 0.08% - 0.30% |
Risk free yield | 3.36% | 2.32% | 2.39% | 2.41% | 2.53% |
Non-Life Illiquidy 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
Company’s obligations which are paid out as annuities. They are significant enough in
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
329
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 and reinsurance 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.
Mortality
If the volume of internal mortality data is insufficient, best estimate mortality assumptions are
determined based on the insurer's historical experience and national mortality tables, expressed
as a percentage of the national mortality tables.
For the Company, mortality rates are derived from its own experience over the past five years,
as the available internal mortality data are sufficient. Mortality rates for each age group are
determined by combining two sources: portfolio data and population data, considering both the
number of deaths and central exposure to the risk of death. For age groups with limited internal
data, greater weighting is given to population data, whereas for groups with sufficient portfolio
data, only internal data are used. For upper age limits where neither internal nor population data
are available, extrapolation is performed using a predefined formula. The primary risk factors for
grouping are age and sex, as previous analyses indicate these parameters have the most
significant impact on observed mortality.
The grouping of the life insurance portfolio and the corresponding mortality assumptions are
presented in the following table.
330
Group | % of national mortality tables |
Endowment, annuity (premium payment phase) and term insurances | 50 % - 130 % |
Whole life insurances | 60 %- 100 % |
Unit linked insurances | 40 % - 50 % |
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:
▪
policy termination without payout,
▪
surrender and
▪
capitalisation.
The first two cases are treated together as surrender, so separate rates have been derived for
surrender and capitalisation.
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.
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 expense inflation assumption was determined as a vector (varying rates of expense growth
over the years) based on published International Monetary Fund inflation forecasts and other
publicly available data, adjusted for the insurer's own experience.
The methodology for deriving expense assumptions remained unchanged from the previous
year.
331
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 64.1%
(2023 64.2%) 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. The selected confidence level for both the risk of liabilities for
incurred claims and the risk of liabilities for remaining coverage at Group level and the Company
is 75%.
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
332
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.
3.1.2
Insurance contract assets and liabilities
Insurance contract assets and liabilities of the Triglav Group
31 Dec 2024 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 59,746 | 5,830,084 | 5,889,830 | 13,951,277 | 0 | 13,951,277 | 19,841,107 |
Assets for remaining coverage | 107,022 | 7,407,429 | 7,514,451 | 22,153,047 | 0 | 22,153,047 | 29,667,498 |
Assets for incurred claims | -47,276 | -1,577,345 | -1,624,621 | -8,201,770 | 0 | -8,201,770 | -9,826,391 |
Insurance contract liabilities | 48,552,544 | 1,006,094,979 | 1,054,647,523 | 734,214,449 | 684,635,994 | 1,418,850,443 | 2,473,497,966 |
Liabilities for remaining coverage | 47,385,829 | 184,706,459 | 232,092,288 | 717,577,239 | 674,005,363 | 1,391,582,602 | 1,623,674,890 |
Liabilities for incurred claims | 1,166,715 | 821,388,520 | 822,555,235 | 16,637,210 | 10,630,631 | 27,267,841 | 849,823,076 |
Total net insurance contract liabilities | 48,492,798 | 1,000,264,895 | 1,048,757,693 | 720,263,172 | 684,635,994 | 1,404,899,166 | 2,453,656,859 |
Net liabilities for remaining coverage | 47,278,807 | 177,299,030 | 224,577,837 | 695,424,192 | 674,005,363 | 1,369,429,555 | 1,594,007,392 |
Net liabilities for incurred claims | 1,213,991 | 822,965,865 | 824,179,856 | 24,838,980 | 10,630,631 | 35,469,611 | 859,649,467 |
31 Dec 2023 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 0 | 1,859,718 | 1,859,718 | 10,234,160 | 0 | 10,234,160 | 12,093,878 |
Assets for remaining coverage | 0 | 3,637,114 | 3,637,114 | 17,456,327 | 0 | 17,456,327 | 21,093,441 |
Assets for incurred claims | 0 | -1,777,396 | -1,777,396 | -7,222,167 | 0 | -7,222,167 | -8,999,563 |
Insurance contract liabilities | 53,163,299 | 961,543,958 | 1,014,707,257 | 759,808,515 | 556,131,832 | 1,315,940,347 | 2,330,647,604 |
Liabilities for remaining coverage | 52,628,539 | 137,502,387 | 190,130,926 | 743,054,126 | 545,627,793 | 1,288,681,919 | 1,478,812,845 |
Liabilities for incurred claims | 534,760 | 824,041,571 | 824,576,331 | 16,754,389 | 10,504,039 | 27,258,428 | 851,834,759 |
Total net insurance contract liabilities | 53,163,299 | 959,684,240 | 1,012,847,539 | 749,574,355 | 556,131,832 | 1,305,706,187 | 2,318,553,726 |
Net liabilities for remaining coverage | 52,628,539 | 133,865,273 | 186,493,812 | 725,597,799 | 545,627,793 | 1,271,225,592 | 1,457,719,404 |
Net liabilities for incurred claims | 534,760 | 825,818,967 | 826,353,727 | 23,976,556 | 10,504,039 | 34,480,595 | 860,834,322 |
333
Categories of insurance contract assets and liabilities of the Triglav Group
31 Dec 2024 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 59,746 | 5,830,084 | 5,889,830 | 13,951,275 | 0 | 13,951,275 | 19,841,105 |
Estimates of the present value of the future cash flows | 114,826 | 5,847,732 | 5,962,558 | 115,287,435 | 0 | 115,287,435 | 121,249,993 |
Risk adjustment for non-financial risk | -4,628 | -17,648 | -22,276 | -13,003,909 | 0 | -13,003,909 | -13,026,185 |
Contractual service margin | -50,452 | 0 | -50,452 | -88,332,251 | 0 | -88,332,251 | -88,382,703 |
Insurance contract liabilities | 48,552,543 | 1,006,094,979 | 1,054,647,522 | 734,214,449 | 684,635,994 | 1,418,850,443 | 2,473,497,965 |
Estimates of the present value of the future cash flows | 29,804,409 | 959,822,165 | 989,626,574 | 648,459,248 | 566,185,454 | 1,214,644,702 | 2,204,271,276 |
Risk adjustment for non-financial risk | 4,144,633 | 46,272,814 | 50,417,447 | 8,851,549 | 11,521,677 | 20,373,226 | 70,790,673 |
Contractual service margin | 14,603,501 | 0 | 14,603,501 | 76,903,652 | 106,928,863 | 183,832,515 | 198,436,016 |
Total net insurance contract liabilities | 48,492,797 | 1,000,264,895 | 1,048,757,692 | 720,263,174 | 684,635,994 | 1,404,899,168 | 2,453,656,860 |
Net liabilities from expected future cash flows | 29,689,583 | 953,974,433 | 983,664,016 | 533,171,813 | 566,185,454 | 1,099,357,267 | 2,083,021,283 |
Net liabilities from risk adjustment for non- financial risk | 4,149,261 | 46,290,462 | 50,439,723 | 21,855,458 | 11,521,677 | 33,377,135 | 83,816,858 |
Net liabilities from contractual service margin | 14,653,953 | 0 | 14,653,953 | 165,235,903 | 106,928,863 | 272,164,766 | 286,818,719 |
31 Dec 2023 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 0 | 1,859,718 | 1,859,718 | 10,234,160 | 0 | 10,234,160 | 12,093,878 |
Estimates of the present value of the future cash flows | 0 | 1,939,532 | 1,939,532 | 91,500,121 | 0 | 91,500,121 | 93,439,653 |
Risk adjustment for non-financial risk | 0 | -79,814 | -79,814 | -10,966,798 | 0 | -10,966,798 | -11,046,612 |
Contractual service margin | 0 | 0 | 0 | -70,299,163 | 0 | -70,299,163 | -70,299,163 |
Insurance contract liabilities | 53,163,299 | 961,543,958 | 1,014,707,257 | 759,808,515 | 556,131,832 | 1,315,940,347 | 2,330,647,604 |
Estimates of the present value of the future cash flows | 31,633,557 | 910,286,517 | 941,920,074 | 698,961,998 | 443,299,649 | 1,142,261,647 | 2,084,181,721 |
Risk adjustment for non-financial risk | 4,739,729 | 51,257,441 | 55,997,170 | 9,405,727 | 12,915,268 | 22,320,995 | 78,318,165 |
Contractual service margin | 16,790,016 | 0 | 16,790,016 | 51,440,791 | 99,916,915 | 151,357,706 | 168,147,722 |
Total net insurance contract liabilities | 53,163,299 | 959,684,240 | 1,012,847,539 | 749,574,355 | 556,131,832 | 1,305,706,187 | 2,318,553,726 |
Net liabilities from expected future cash flows | 31,633,557 | 908,346,985 | 939,980,542 | 607,461,877 | 443,299,649 | 1,050,761,526 | 1,990,742,068 |
Net liabilities from risk adjustment for non- financial risk | 4,739,729 | 51,337,255 | 56,076,984 | 20,372,525 | 12,915,268 | 33,287,793 | 89,364,777 |
Net liabilities from contractual service margin | 16,790,016 | 0 | 16,790,016 | 121,739,954 | 99,916,915 | 221,656,869 | 238,446,885 |
334
Insurance contract assets and liabilities of Zavarovalnica Triglav
31 Dec 2024 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 59,746 | 452,373 | 512,120 | 13,920,027 | 0 | 13,920,027 | 14,432,147 |
Assets for remaining coverage | 107,023 | 640,213 | 747,236 | 22,103,114 | 0 | 22,103,114 | 22,850,349 |
Assets for incurred claims | -47,276 | -187,839 | -235,116 | -8,183,087 | 0 | -8,183,087 | -8,418,202 |
Insurance contract liabilities | 46,372,766 | 650,298,542 | 696,671,307 | 631,146,007 | 654,796,385 | 1,285,942,391 | 1,982,613,699 |
Liabilities for remaining coverage | 45,265,910 | 150,519,191 | 195,785,101 | 616,957,735 | 644,531,975 | 1,261,489,710 | 1,457,274,811 |
Liabilities for incurred claims | 1,106,856 | 499,779,351 | 500,886,207 | 14,188,272 | 10,264,410 | 24,452,681 | 525,338,888 |
Total net insurance contract liabilities | 46,313,019 | 649,846,168 | 696,159,188 | 617,225,979 | 654,796,385 | 1,272,022,364 | 1,968,181,552 |
Net liabilities for remaining coverage | 45,158,887 | 149,878,978 | 195,037,865 | 594,854,621 | 644,531,975 | 1,239,386,596 | 1,434,424,461 |
Net liabilities for incurred claims | 1,154,133 | 499,967,190 | 501,121,322 | 22,371,358 | 10,264,410 | 32,635,768 | 533,757,091 |
31 Dec 2023 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 0 | 764,741 | 764,741 | 10,194,985 | 0 | 10,194,985 | 10,959,726 |
Assets for remaining coverage | 0 | 1,648,095 | 1,648,095 | 17,409,858 | 0 | 17,409,858 | 19,057,953 |
Assets for incurred claims | 0 | -883,354 | -883,354 | -7,214,873 | 0 | -7,214,873 | -8,098,227 |
Insurance contract liabilities | 50,331,656 | 672,525,316 | 722,856,972 | 665,248,233 | 531,845,434 | 1,197,093,667 | 1,919,950,640 |
Liabilities for remaining coverage | 49,812,636 | 124,231,663 | 174,044,299 | 651,206,772 | 521,653,352 | 1,172,860,125 | 1,346,904,424 |
Liabilities for incurred claims | 519,020 | 548,293,653 | 548,812,673 | 14,041,461 | 10,192,082 | 24,233,543 | 573,046,216 |
Total net insurance contract liabilities | 50,331,656 | 671,760,575 | 722,092,231 | 655,053,248 | 531,845,434 | 1,186,898,683 | 1,908,990,914 |
Net liabilities for remaining coverage | 49,812,636 | 122,583,568 | 172,396,204 | 633,796,914 | 521,653,352 | 1,155,450,267 | 1,327,846,471 |
Net liabilities for incurred claims | 519,020 | 549,177,007 | 549,696,027 | 21,256,334 | 10,192,082 | 31,448,416 | 581,144,443 |
Categories of insurance contract assets and liabilities of Zavarovalnica Triglav
31 Dec 2024 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 59,746 | 452,373 | 512,120 | 13,920,027 | 0 | 13,920,027 | 14,432,147 |
Estimates of the present value of the future cash flows | 114,826 | 464,634 | 579,460 | 115,086,654 | 0 | 115,086,654 | 115,666,114 |
Risk adjustment for non-financial risk | -4,628 | -12,261 | -16,889 | -12,985,053 | 0 | -12,985,053 | -13,001,942 |
Contractual service margin | -50,452 | 0 | -50,452 | -88,181,573 | 0 | -88,181,573 | -88,232,025 |
Insurance contract liabilities | 46,372,766 | 650,298,542 | 696,671,307 | 631,146,007 | 654,796,385 | 1,285,942,391 | 1,982,613,699 |
Estimates of the present value of the future cash flows | 28,680,847 | 625,761,932 | 654,442,780 | 561,337,683 | 537,883,993 | 1,099,221,676 | 1,753,664,456 |
Risk adjustment for non-financial risk | 4,109,553 | 24,536,609 | 28,646,162 | 6,114,996 | 10,981,013 | 17,096,009 | 45,742,171 |
Contractual service margin | 13,582,366 | 0 | 13,582,366 | 63,693,328 | 105,931,378 | 169,624,706 | 183,207,072 |
Total net insurance contract liabilities | 46,313,019 | 649,846,168 | 696,159,188 | 617,225,979 | 654,796,385 | 1,272,022,364 | 1,968,181,552 |
Net liabilities from expected future cash flows | 28,566,021 | 625,297,298 | 653,863,319 | 446,251,029 | 537,883,993 | 984,135,022 | 1,637,998,341 |
Net liabilities from risk adjustment for non- financial risk | 4,114,181 | 24,548,870 | 28,663,051 | 19,100,049 | 10,981,013 | 30,081,062 | 58,744,113 |
Net liabilities from contractual service margin | 13,632,817 | 0 | 13,632,817 | 151,874,902 | 105,931,378 | 257,806,280 | 271,439,097 |
335
31 Dec 2023 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance contract assets | 0 | 764,741 | 764,741 | 10,194,985 | 0 | 10,194,985 | 10,959,726 |
Estimates of the present value of the future cash flows | 0 | 777,064 | 777,064 | 91,393,420 | 0 | 91,393,420 | 92,170,484 |
Risk adjustment for non-financial risk | 0 | -12,323 | -12,323 | -10,955,818 | 0 | -10,955,818 | -10,968,141 |
Contractual service margin | 0 | 0 | 0 | -70,242,617 | 0 | -70,242,617 | -70,242,617 |
Insurance contract liabilities | 50,331,656 | 672,525,316 | 722,856,972 | 665,248,233 | 531,845,434 | 1,197,093,667 | 1,919,950,640 |
Estimates of the present value of the future cash flows | 29,878,552 | 641,865,036 | 671,743,588 | 616,773,779 | 420,738,303 | 1,037,512,082 | 1,709,255,670 |
Risk adjustment for non-financial risk | 4,628,235 | 30,660,280 | 35,288,516 | 7,823,404 | 12,358,498 | 20,181,902 | 55,470,418 |
Contractual service margin | 15,824,868 | 0 | 15,824,868 | 40,651,050 | 98,748,633 | 139,399,683 | 155,224,552 |
Total net insurance contract liabilities | 50,331,656 | 671,760,575 | 722,092,231 | 655,053,248 | 531,845,434 | 1,186,898,683 | 1,908,990,914 |
Net liabilities from expected future cash flows | 29,878,552 | 641,087,972 | 670,966,524 | 525,380,360 | 420,738,303 | 946,118,662 | 1,617,085,186 |
Net liabilities from risk adjustment for non- financial risk | 4,628,235 | 30,672,603 | 35,300,839 | 18,779,222 | 12,358,498 | 31,137,721 | 66,438,559 |
Net liabilities from contractual service margin | 15,824,868 | 0 | 15,824,868 | 110,893,667 | 98,748,633 | 209,642,300 | 225,467,168 |
336
Insurance revenue and insurance service expenses recognised in profit or loss and other
comprehensive income
Breakdown of insurance revenue and insurance service expenses of the Triglav Group
2024 | in EUR | ||||||
NON-LIFE and HEALTH | LIFE | ||||||
General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance revenue recognised in profit or loss | 40,232,060 | 1,159,320,371 | 1,199,552,431 | 65,501,981 | 32,897,961 | 98,399,942 | 1,297,952,373 |
Amounts relating to changes in liabilities for the remaining coverage | 33,040,156 | 0 | 33,040,156 | 50,896,373 | 22,062,469 | 72,958,842 | 105,998,998 |
Expected cash flows from claims and other insurance services | 19,618,487 | 0 | 19,618,487 | 27,164,680 | 8,004,704 | 35,169,384 | 54,787,871 |
Contractual service margin recognised in profit or loss to reflect the transfer of services | 11,016,969 | 0 | 11,016,969 | 24,066,424 | 12,568,038 | 36,634,462 | 47,651,431 |
Release of the risk adjustment for non- financial risk for the risk expired | 2,404,700 | 0 | 2,404,700 | 2,550,252 | 1,882,344 | 4,432,596 | 6,837,296 |
Other | 0 | 0 | 0 | -2,884,983 | -392,617 | -3,277,600 | -3,277,600 |
Premium income relating to the recovery of insurance acquisition cash flows | 7,191,904 | 0 | 7,191,904 | 14,604,670 | 10,835,492 | 25,440,162 | 32,632,066 |
Income recognised under the PAA approach | 0 | 1,159,320,371 | 1,159,320,371 | 938 | 0 | 938 | 1,159,321,309 |
Insurance service expenses recognised in profit and loss | -18,948,019 | -906,641,284 | -925,589,303 | -45,218,158 | -21,006,205 | -66,224,363 | -991,813,666 |
Incurred claims and other insurance service expenses | -10,581,643 | -637,876,297 | -648,457,940 | -23,609,184 | -4,996,808 | -28,605,992 | -677,063,932 |
Insurance service operating expenses | -8,366,376 | -268,764,987 | -277,131,363 | -21,608,974 | -16,009,397 | -37,618,371 | -314,749,734 |
Acquisition costs | -7,191,904 | -175,113,624 | -182,305,528 | -14,604,790 | -10,835,492 | -25,440,282 | -207,745,810 |
Losses/reversal of losses on onerous contracts | 2,409,794 | -5,479,811 | -3,070,017 | 1,413,039 | 30,975 | 1,444,014 | -1,626,003 |
Administration costs | -3,584,266 | -88,171,552 | -91,755,818 | -8,417,223 | -5,204,880 | -13,622,103 | -105,377,921 |
Net insurance revenue recognised in profit or loss | 21,284,041 | 252,679,087 | 273,963,128 | 20,283,823 | 11,891,756 | 32,175,579 | 306,138,707 |
Insurance finance income/expenses | -1,272,857 | -22,581,787 | -23,854,644 | -29,095,888 | -97,870,092 | -126,965,980 | -150,820,624 |
Effect of changes in interest rates and other financial assumptions | -513,993 | -8,831,393 | -9,345,386 | -7,211,121 | 0 | -7,211,121 | -16,556,507 |
Interest accreted using current financial asumptions | 0 | 0 | 0 | -1,500,693 | -156,147 | -1,656,840 | -1,656,840 |
Interest accreted at the locked-in interest rate | -758,864 | -13,750,394 | -14,509,258 | -20,384,074 | 0 | -20,384,074 | -34,893,332 |
Changes in the fair value of the portfolio of insurance contracts with direct participation features | 0 | 0 | 0 | 0 | -97,713,945 | -97,713,945 | -97,713,945 |
Total | 20,011,184 | 230,097,300 | 250,108,484 | -8,812,065 | -85,978,336 | -94,790,401 | 155,318,083 |
337
2023 | in EUR | ||||||
NON-LIFE and HEALTH | LIFE | ||||||
General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance revenue recognised in profit or loss | 36,758,283 | 1,229,060,514 | 1,265,818,797 | 56,203,763 | 29,164,106 | 85,367,869 | 1,351,186,666 |
Amounts relating to changes in liabilities for the remaining coverage | 29,827,221 | 0 | 29,827,221 | 42,647,161 | 19,715,979 | 62,363,140 | 92,190,361 |
Expected cash flows from claims and other insurance services | 16,250,738 | 0 | 16,250,738 | 21,837,544 | 7,076,811 | 28,914,355 | 45,165,093 |
Contractual service margin recognised in profit or loss to reflect the transfer of services | 10,364,467 | 0 | 10,364,467 | 18,676,371 | 10,753,517 | 29,429,888 | 39,794,355 |
Release of the risk adjustment for non- financial risk for the risk expired | 3,212,016 | 0 | 3,212,016 | 2,075,356 | 1,328,144 | 3,403,500 | 6,615,516 |
Other | 0 | 0 | 0 | 57,890 | 557,507 | 615,397 | 615,397 |
Premium income relating to the recovery of insurance acquisition cash flows | 6,931,061 | 0 | 6,931,061 | 13,555,252 | 9,448,127 | 23,003,379 | 29,934,440 |
Income recognised under the PAA approach | 0 | 1,229,060,514 | 1,229,060,514 | 1,349 | 0 | 1,349 | 1,229,061,863 |
Insurance service expenses recognised in profit and loss | -4,024,590 | -1,259,454,648 | -1,263,479,238 | -41,459,605 | -18,317,695 | -59,777,300 | -1,323,256,538 |
Incurred claims and other insurance service expenses | -9,066,626 | -1,005,011,873 | -1,014,078,499 | -22,472,543 | -5,546,346 | -28,018,889 | -1,042,097,388 |
Insurance service operating expenses | 5,042,034 | -254,442,774 | -249,400,740 | -18,987,063 | -12,771,349 | -31,758,412 | -281,159,152 |
Acquisition costs | -6,931,061 | -170,249,516 | -177,180,577 | -13,555,894 | -9,448,127 | -23,004,021 | -200,184,598 |
Losses/reversal of losses on onerous contracts | 14,813,528 | 3,621,171 | 18,434,699 | 1,079,123 | 1,336,310 | 2,415,433 | 20,850,132 |
Administration costs | -2,840,433 | -87,814,429 | -90,654,862 | -6,510,292 | -4,659,532 | -11,169,824 | -101,824,686 |
Net insurance revenue recognised in profit or loss | 32,733,693 | -30,394,134 | 2,339,559 | 14,744,158 | 10,846,411 | 25,590,569 | 27,930,128 |
Insurance finance income/expenses | -1,887,082 | -24,194,420 | -26,081,502 | -41,835,033 | -50,494,156 | -92,329,189 | -118,410,691 |
Effect of changes in interest rates and other financial assumptions | -1,762,653 | -19,289,379 | -21,052,032 | -21,911,860 | 0 | -21,911,860 | -42,963,892 |
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 | -124,429 | -4,905,041 | -5,029,470 | -16,284,719 | -137,177 | -16,421,896 | -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 | -50,356,979 | -50,356,979 |
Total | 30,846,611 | -54,588,554 | -23,741,943 | -27,090,875 | -39,647,745 | -66,738,620 | -90,480,563 |
338
Breakdown of insurance revenue and insurance service expenses of the Triglav Group
2024 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Net insurance finance income/expenses recognised in profit or loss | -758,864 | -13,750,394 | -14,509,258 | -12,725,101 | -97,870,092 | -110,595,193 | -125,104,451 |
Net insurance finance income/expenses recognised in other comprehensive income | -513,993 | -8,831,393 | -9,345,386 | -16,370,787 | 0 | -16,370,787 | -25,716,173 |
Total net insurance finance income/expenses | -1,272,857 | -22,581,787 | -23,854,644 | -29,095,888 | -97,870,092 | -126,965,980 | -150,820,624 |
2023 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Net insurance finance income/expenses recognised in profit or loss | -124,430 | -4,905,041 | -5,029,471 | -14,219,827 | -50,494,156 | -64,713,983 | -69,743,454 |
Net insurance finance income/expenses recognised in other comprehensive income | -1,762,653 | -19,289,374 | -21,052,027 | -27,615,206 | 0 | -27,615,206 | -48,667,233 |
Total net insurance finance income/expenses | -1,887,082 | -24,194,420 | -26,081,502 | -41,835,033 | -50,494,156 | -92,329,189 | -118,410,691 |
Income and expenses from insurance contracts of the Triglav Group relating to discontinued
operations
Part of the income and expenses achieved by the Triglav Group in 2024 and 2023 relates to
discontinued operations. Below is a reconciliation of the amounts disclosed in profit or loss.
in EUR | ||||||
| 2024 | 2023 | |||||
| Total | Of which continuing operations | Of which discontinued operations | Total | Of which continuing operations | Of which discontinued operations | |
| Income from insurance contracts issued recognised in profit or loss | 1,297,952,373 | 1,297,899,920 | 52,453 | 1,351,186,665 | 1,157,910,703 | 193,275,962 |
| Expenses from insurance contracts issued recognised in profit or loss | -991,813,666 | -997,300,760 | 5,487,094 | -1,323,256,538 | -1,107,300,071 | -215,956,467 |
Insurance finance income and expenses | -125,104,451 | -124,991,075 | -113,376 | -69,743,454 | -69,662,641 | -80,813 |
Total | 181,034,256 | 175,608,085 | 5,426,171 | -41,813,327 | -19,052,009 | -22,761,318 |
339
Insurance revenue and insurance service expenses of Zavarovalnica Triglav
2024 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance revenue recognised in profit or loss | 38,569,689 | 795,980,923 | 834,550,612 | 44,783,128 | 31,770,079 | 76,553,207 | 911,103,819 |
Amounts relating to changes in liabilities for the remaining coverage | 32,336,047 | 0 | 32,336,047 | 36,676,348 | 21,434,092 | 58,110,440 | 90,446,487 |
Expected cash flows from claims and other insurance services | 19,306,035 | 0 | 19,306,035 | 15,558,437 | 7,582,576 | 23,141,013 | 42,447,047 |
Contractual service margin recognised in profit or loss to reflect the transfer of services | 10,645,725 | 0 | 10,645,725 | 20,154,889 | 12,442,472 | 32,597,361 | 43,243,086 |
Release of the risk adjustment for non- financial risk for the risk expired | 2,384,288 | 0 | 2,384,288 | 2,200,369 | 1,808,746 | 4,009,115 | 6,393,402 |
Other | 0 | 0 | 0 | -1,237,346 | -399,702 | -1,637,048 | -1,637,048 |
Premium income relating to the recovery of insurance acquisition cash flows | 6,233,642 | 0 | 6,233,642 | 8,105,842 | 10,335,987 | 18,441,829 | 24,675,471 |
Income recognised under the PAA approach | 0 | 795,980,923 | 795,980,923 | 938 | 0 | 938 | 795,981,861 |
Insurance service expenses recognised in profit and loss | -17,730,601 | -581,369,420 | -599,100,022 | -26,810,471 | -19,841,758 | -46,652,229 | -645,752,251 |
Incurred claims and other insurance service expenses | -10,261,132 | -391,795,955 | -402,057,088 | -14,317,951 | -4,933,662 | -19,251,613 | -421,308,700 |
Insurance service operating expenses | -7,469,469 | -189,573,465 | -197,042,934 | -12,492,520 | -14,908,097 | -27,400,616 | -224,443,550 |
Acquisition costs | -6,233,642 | -117,230,658 | -123,464,300 | -8,105,961 | -10,335,987 | -18,441,948 | -141,906,249 |
Losses/reversal of losses on onerous contracts | 2,347,679 | -3,440,340 | -1,092,661 | 1,336,260 | 275,491 | 1,611,751 | 519,090 |
Administration costs | -3,583,505 | -68,902,467 | -72,485,973 | -5,722,818 | -4,847,601 | -10,570,419 | -83,056,391 |
Net insurance revenue recognised in profit or loss | 20,839,088 | 214,611,502 | 235,450,590 | 17,972,658 | 11,928,320 | 29,900,978 | 265,351,568 |
Insurance finance income/expenses | -1,201,779 | -13,885,238 | -15,087,018 | -25,496,575 | -95,568,179 | -121,064,754 | -136,151,771 |
Effect of changes in interest rates and other financial assumptions | -458,859 | -5,633,303 | -6,092,162 | -5,482,005 | 0 | -5,482,005 | -11,574,167 |
Interest accreted using current financial asumptions | 0 | 0 | 0 | -1,500,693 | -153,663 | -1,654,357 | -1,654,357 |
Interest accreted at the locked-in interest rate | -742,920 | -8,251,935 | -8,994,855 | -18,513,877 | 0 | -18,513,877 | -27,508,732 |
Changes in the fair value of the portfolio of insurance contracts with direct participation features | 0 | 0 | 0 | 0 | -95,414,516 | -95,414,516 | -95,414,516 |
Total | 19,637,309 | 200,726,264 | 220,363,573 | -7,523,917 | -83,639,858 | -91,163,775 | 129,199,797 |
340
2023 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Insurance revenue recognised in profit or loss | 34,945,170 | 884,206,332 | 919,151,501 | 38,394,188 | 28,050,173 | 66,444,361 | 985,595,863 |
Amounts relating to changes in liabilities for the remaining coverage | 29,104,412 | 0 | 29,104,412 | 30,424,967 | 18,988,199 | 49,413,166 | 78,517,578 |
Expected cash flows from claims and other insurance services | 15,860,514 | 0 | 15,860,514 | 12,761,768 | 6,667,170 | 19,428,938 | 35,289,453 |
Contractual service margin recognised in profit or loss to reflect the transfer of services | 10,058,777 | 0 | 10,058,777 | 15,410,353 | 10,602,928 | 26,013,281 | 36,072,059 |
Release of the risk adjustment for non- financial risk for the risk expired | 3,185,121 | 0 | 3,185,121 | 1,782,110 | 1,253,659 | 3,035,769 | 6,220,890 |
Other | 0 | 0 | 0 | 470,735 | 464,442 | 935,177 | 935,177 |
Premium income relating to the recovery of insurance acquisition cash flows | 5,840,757 | 0 | 5,840,757 | 7,967,872 | 9,061,975 | 17,029,847 | 22,870,604 |
Income recognised under the PAA approach | 0 | 884,206,332 | 884,206,332 | 1,349 | 0 | 1,349 | 884,207,681 |
Insurance service expenses recognised in profit and loss | -2,392,259 | -943,615,852 | -946,008,112 | -24,590,808 | -17,884,706 | -42,475,514 | -988,483,626 |
Incurred claims and other insurance service expenses | -8,796,681 | -765,487,855 | -774,284,536 | -13,754,753 | -5,217,847 | -18,972,600 | -793,257,137 |
Insurance service operating expenses | 6,404,422 | -178,127,997 | -171,723,575 | -10,836,055 | -12,666,859 | -23,502,914 | -195,226,489 |
Acquisition costs | -5,840,757 | -113,198,532 | -119,039,289 | -7,968,515 | -9,061,975 | -17,030,489 | -136,069,779 |
Losses/reversal of losses on onerous contracts | 14,955,093 | 6,073,753 | 21,028,846 | 1,441,836 | 771,338 | 2,213,174 | 23,242,020 |
Administration costs | -2,709,914 | -71,003,218 | -73,713,132 | -4,309,377 | -4,376,222 | -8,685,599 | -82,398,731 |
Net insurance revenue recognised in profit or loss | 32,552,910 | -59,409,521 | -26,856,610 | 13,803,380 | 10,165,467 | 23,968,847 | -2,887,763 |
Insurance finance income/expenses | -1,743,036 | -15,552,911 | -17,295,947 | -36,498,155 | -46,552,077 | -83,050,233 | -100,346,180 |
Effect of changes in interest rates and other financial assumptions | -1,632,593 | -12,527,481 | -14,160,074 | -18,207,027 | 0 | -18,207,027 | -32,367,101 |
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 | -110,443 | -3,025,431 | -3,135,873 | -14,652,674 | -134,223 | -14,786,897 | -17,922,770 |
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 | 30,809,874 | -74,962,432 | -44,152,557 | -22,694,775 | -36,386,610 | -59,081,385 | -103,233,943 |
Breakdown of insurance revenue and insurance service expenses of Zavarovalnica Triglav
2024 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Net insurance finance income/expenses recognised in profit or loss | -742,920 | -8,251,935 | -8,994,855 | -11,299,193 | -95,568,179 | -106,867,372 | -115,862,227 |
Net insurance finance income/expenses recognised in other comprehensive income | -458,859 | -5,633,303 | -6,092,162 | -14,197,382 | 0 | -14,197,382 | -20,289,544 |
Total net insurance finance income/expenses | -1,201,779 | -13,885,238 | -15,087,018 | -25,496,575 | -95,568,179 | -121,064,754 | -136,151,771 |
2023 | in EUR | ||||||
| NON-LIFE and HEALTH | LIFE | ||||||
| General model (BBA) | Premium allocation approach (PAA) | Total | General model (BBA) | Variable fee approach (VFA) | Total | TOTAL | |
Net insurance finance income/expenses recognised in profit or loss | -110,443 | -3,025,431 | -3,135,873 | -13,326,601 | -46,552,077 | -59,878,679 | -63,014,552 |
Net insurance finance income/expenses recognised in other comprehensive income | -1,632,593 | -12,527,481 | -14,160,074 | -23,171,554 | 0 | -23,171,554 | -37,331,628 |
Total net insurance finance income/expenses | -1,743,036 | -15,552,911 | -17,295,947 | -36,498,155 | -46,552,077 | -83,050,233 | -100,346,180 |
341
Income and expenses from insurance contracts of Zavarovalnica Triglav relating to discontinued
operations
Part of the income and expenses achieved by Zavarovalnica Triglav in 2023 and 2024 relates to
discontinued operations. Below is a reconciliation of the amounts disclosed in profit or loss.
v EUR | ||||||
| 2024 | 2023 | |||||
| Total | Of which continuing operations | Of which discontinued operations | Total | Of which continuing operations | Of which discontinued operations | |
Income from insurance contracts issued recognised in profit or loss | 911,103,819 | 911,051,366 | 52,453 | 985,595,863 | 792,319,901 | 193,275,962 |
Expenses from insurance contracts issued recognised in profit or loss | -645,752,251 | -651,239,341 | 5,487,091 | -988,483,626 | -772,527,441 | 215,956,185 |
Insurance finance income and expenses | -115,862,227 | -115,748,853 | -113,374 | -63,014,552 | -62,933,739 | -80,813 |
Total | 149,489,341 | 144,063,172 | 5,426,170 | -65,902,315 | -43,141,279 | -22,761,036 |
342
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
2024 | in EUR | ||||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON LIFE and HEALTH | LIFE | |||||||
Remaining coverage | Remaining coverage | ||||||||
Excluding the loss component | Loss component | Incurred claims | Total | Excluding the loss component | Loss component | Remaining coverage | Total | TOTAL | |
Opening balance of net insurance contract assets/liabilities | -47,681,655 | -4,946,886 | -534,759 | -53,163,300 | -697,562,894 | -28,033,810 | -23,976,556 | -749,573,260 | -802,736,560 |
Insurance contract assets | 0 | 0 | 0 | 0 | 17,629,497 | -173,171 | -7,222,167 | 10,234,159 | 10,234,159 |
Insurance contract liabilities | -47,681,655 | -4,946,886 | -534,759 | -53,163,300 | -715,192,391 | -27,860,639 | -16,754,389 | -759,807,419 | -812,970,719 |
Insurance revenue | 40,232,059 | 0 | 0 | 40,232,059 | 65,501,041 | 0 | 0 | 65,501,041 | 105,733,100 |
Contracts under the modified retrospective approach | 500,773 | 0 | 0 | 500,773 | 9,708,032 | 0 | 0 | 9,708,032 | 10,208,805 |
Contracts under the fair value approach | 0 | 0 | 0 | 0 | 7,976,991 | 0 | 0 | 7,976,991 | 7,976,991 |
Other contracts | 39,731,287 | 0 | 0 | 39,731,287 | 47,816,020 | 0 | 0 | 47,816,020 | 87,547,307 |
Insurance service expenses | -7,191,904 | 2,409,795 | -14,165,909 | -18,948,018 | -14,604,670 | 1,413,036 | -32,026,174 | -45,217,808 | -64,165,826 |
Incurred claims | 0 | 1,703,030 | -14,165,909 | -12,462,879 | 0 | 2,606,987 | -32,026,174 | -29,419,187 | -41,882,066 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 1,703,030 | -18,209,175 | -16,506,145 | 0 | 2,606,987 | -32,757,794 | -30,150,807 | -46,656,952 |
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims) | 0 | 0 | 4,043,266 | 4,043,266 | 0 | 0 | 731,620 | 731,620 | 4,774,886 |
Insurance service operating expenses | -7,191,904 | 706,765 | 0 | -6,485,139 | -14,604,670 | -1,193,951 | 0 | -15,798,621 | -22,283,760 |
Amortisation of insurance acquisition cash flows | -7,191,904 | 0 | 0 | -7,191,904 | -14,604,670 | 0 | 0 | -14,604,670 | -21,796,574 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | 706,765 | 0 | 706,765 | 0 | -1,193,951 | 0 | -1,193,951 | -487,186 |
Investment components excluded from insurance revenue and insurance service expenses | 0 | 0 | 0 | 0 | 106,531,453 | 0 | -106,531,453 | 0 | 0 |
Net insurance finance income/expenses | -1,195,275 | -148,376 | 70,790 | -1,272,861 | -28,312,602 | -424,851 | -358,503 | -29,095,956 | -30,368,814 |
Cash flows | -28,756,565 | 0 | 13,415,887 | -15,340,678 | -99,906,890 | 0 | 138,055,411 | 38,148,521 | 22,807,842 |
Premiums received for insurance contracts issued | -35,602,280 | 0 | 0 | -35,602,280 | -120,594,645 | 0 | 0 | -120,594,645 | -156,196,925 |
| Claims and other insurance service expenses paid, including investment components | 0 | 0 | 13,415,887 | 13,415,887 | 0 | 0 | 138,055,411 | 138,055,411 | 151,471,297 |
Insurance acquisition cash flows | 6,845,715 | 0 | 0 | 6,845,715 | 20,687,755 | 0 | 0 | 20,687,755 | 27,533,470 |
Effect of exchange rate differences | 0 | 0 | 0 | 0 | -17,421 | -6,584 | -1,706 | -25,711 | -25,713 |
Closing balance of net insurance contract assets/liabilities | -44,593,340 | -2,685,467 | -1,213,991 | -48,492,798 | -668,371,983 | -27,052,209 | -24,838,980 | -720,263,172 | -768,755,970 |
Insurance contract assets | 122,175 | -15,153 | -47,276 | 59,746 | 22,224,737 | -71,690 | -8,201,770 | 13,951,277 | 14,011,023 |
Insurance contract liabilities | -44,715,515 | -2,670,314 | -1,166,715 | -48,552,544 | -690,596,720 | -26,980,519 | -16,637,210 | -734,214,449 | -782,766,993 |
343
2023 | in EUR | ||||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON LIFE and HEALTH | LIFE | |||||||
Remaining coverage | Remaining coverage | ||||||||
Excluding the loss component | Loss component | Incurred claims | Total | Excluding the loss component | Loss component | Remaining coverage | Total | TOTAL | |
Opening balance of net insurance contract assets/liabilities | -48,605,952 | -19,692,980 | 771,960 | -67,526,972 | -701,327,835 | -28,845,103 | -23,027,430 | -753,200,368 | -820,727,340 |
Insurance contract assets | 0 | 0 | 0 | 0 | 11,814,766 | -43,334 | -5,613,417 | 6,158,015 | 6,158,015 |
Insurance contract liabilities | -48,605,952 | -19,692,980 | 771,960 | -67,526,972 | -713,142,601 | -28,801,769 | -17,414,013 | -759,358,383 | -826,885,355 |
Insurance revenue | 36,758,283 | 0 | 0 | 36,758,283 | 56,202,414 | 0 | 0 | 56,202,414 | 92,960,697 |
Contracts under the modified retrospective approach | 949,044 | 0 | 0 | 949,044 | 10,741,743 | 0 | 0 | 10,741,743 | 11,690,787 |
Contracts under the fair value approach | 0 | 0 | 0 | 0 | 5,408,533 | 0 | 0 | 5,408,533 | 5,408,533 |
Other contracts | 35,809,239 | 0 | 0 | 35,809,239 | 40,052,138 | 0 | 0 | 40,052,138 | 75,861,377 |
Insurance service expenses | -6,931,061 | 14,813,528 | -11,907,057 | -4,024,590 | -13,555,253 | 1,079,123 | -28,982,664 | -41,458,794 | -45,483,384 |
Incurred claims | 0 | 17,052,950 | -11,907,057 | 5,145,893 | 0 | 2,782,389 | -28,982,664 | -26,200,275 | -21,054,382 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 17,052,950 | -18,202,224 | -1,149,274 | 0 | 2,782,389 | -28,899,078 | -26,116,689 | -27,265,963 |
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims) | 0 | 0 | 6,295,167 | 6,295,167 | 0 | 0 | -83,586 | -83,586 | 6,211,581 |
Insurance service operating expenses | -6,931,061 | -2,239,422 | 0 | -9,170,483 | -13,555,253 | -1,703,266 | 0 | -15,258,519 | -24,429,002 |
Amortisation of insurance acquisition cash flows | -6,931,061 | 0 | 0 | -6,931,061 | -13,555,253 | 0 | 0 | -13,555,253 | -20,486,314 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | -2,239,422 | 0 | -2,239,422 | 0 | -1,703,266 | 0 | -1,703,266 | -3,942,688 |
Investment components excluded from insurance revenue and insurance service expenses | 0 | 0 | 0 | 0 | 102,846,524 | 0 | -102,846,524 | 0 | 0 |
Net insurance finance income/expenses | -2,009,470 | -67,434 | 189,822 | -1,887,082 | -41,310,062 | -269,807 | -255,164 | -41,835,033 | -43,722,115 |
Cash flows | -26,893,453 | 0 | 10,410,518 | -16,482,935 | -100,399,871 | 0 | 131,135,040 | 30,735,169 | 14,252,234 |
Premiums received for insurance contracts issued | -33,641,897 | 0 | 0 | -33,641,897 | -118,856,139 | 0 | 0 | -118,856,139 | -152,498,036 |
Claims and other insurance service expenses paid, including investment components | 0 | 0 | 10,410,518 | 10,410,518 | 0 | 0 | 131,135,040 | 131,135,040 | 141,545,558 |
Insurance acquisition cash flows | 6,748,444 | 0 | 0 | 6,748,444 | 18,456,268 | 0 | 0 | 18,456,268 | 25,204,712 |
Effect of exchange rate differences | 0 | 0 | 0 | 0 | 10,090 | 1,977 | 188 | 12,255 | 12,252 |
Closing balance of net insurance contract assets/liabilities | -47,681,652 | -4,946,887 | -534,760 | -53,163,299 | -697,562,891 | -28,033,810 | -23,976,556 | -749,573,257 | -802,736,556 |
Insurance contract assets | 0 | 0 | 0 | 0 | 17,629,498 | -173,171 | -7,222,167 | 10,234,160 | 10,234,160 |
Insurance contract liabilities | -47,681,652 | -4,946,887 | -534,760 | -53,163,299 | -715,192,389 | -27,860,639 | -16,754,389 | -759,807,417 | -812,970,716 |
344
v EUR | ||||||||||
NON-LIFE AND HEALTH INSURANCE CONTRACTS MEASURED UNDER THE PREMIUM ALLOCATION APPROACH (PAA) | 2024 | 2023 | ||||||||
Remaining coverage | Incurred claims | 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 | 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 insurance contract assets/liabilities | -126,020,190 | -7,846,181 | -774,481,712 | -51,337,256 | -959,685,339 | -114,845,557 | -11,467,562 | -589,070,721 | -54,901,086 | -770,284,926 |
Insurance contract assets | 3,623,692 | 6,861 | -1,697,582 | -79,814 | 1,853,157 | 9,069,865 | -16,373 | -1,951,167 | -126,445 | 6,975,880 |
Insurance contract liabilities | -129,643,882 | -7,853,042 | -772,784,130 | -51,257,442 | -961,538,496 | -123,915,422 | -11,451,189 | -587,119,554 | -54,774,641 | -777,260,806 |
Insurance revenue | 1,159,321,307 | 0 | 0 | 0 | 1,159,321,307 | 1,229,060,514 | 0 | 0 | 0 | 1,229,060,514 |
Insurance service expenses | -175,113,744 | -5,479,812 | -732,378,522 | 6,330,438 | -906,641,640 | -170,249,515 | 3,621,170 | -1,098,512,567 | 5,686,264 | -1,259,454,648 |
Incurred claims | 0 | 0 | -732,378,522 | 6,330,438 | -726,048,084 | 0 | 0 | -1,098,512,567 | 5,686,264 | -1,092,826,303 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 0 | -727,190,483 | -20,156,883 | -747,347,366 | 0 | 0 | -1,087,833,405 | -28,079,089 | -1,115,912,494 |
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims) | 0 | 0 | -5,188,039 | 26,487,321 | 21,299,282 | 0 | 0 | -10,679,162 | 33,765,353 | 23,086,191 |
Insurance service operating expenses | -175,113,744 | -5,479,812 | 0 | 0 | -180,593,556 | -170,249,515 | 3,621,170 | 0 | 0 | -166,628,345 |
Amortisation of insurance acquisition cash flows | -175,113,744 | 0 | 0 | 0 | -175,113,744 | -170,249,515 | 0 | 0 | 0 | -170,249,515 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | -5,479,812 | 0 | 0 | -5,479,812 | 0 | 3,621,170 | 0 | 0 | 3,621,170 |
Investment components excluded from insurance revenue and insurance service expenses | 3,273,587 | 0 | -3,273,587 | 0 | 0 | 3,183,018 | 0 | -3,183,018 | 0 | 0 |
Net insurance finance income/expenses | 0 | 0 | -21,302,337 | -1,279,145 | -22,581,482 | 0 | 0 | -22,070,157 | -2,124,263 | -24,194,420 |
Cash flows | -1,025,374,544 | 0 | 754,877,268 | 0 | -270,497,276 | -1,073,185,986 | 0 | 938,314,742 | 0 | -134,871,244 |
Premiums received for insurance contracts issued | -1,218,603,374 | 0 | 0 | 0 | -1,218,603,374 | -1,250,524,825 | 0 | 0 | 0 | -1,250,524,825 |
Claims and other insurance service expenses paid, including investment components | 0 | 0 | 754,877,268 | 0 | 754,877,268 | 0 | 0 | 938,314,742 | 0 | 938,314,742 |
Insurance acquisition cash flows | 193,228,830 | 0 | 0 | 0 | 193,228,830 | 177,338,839 | 0 | 0 | 0 | 177,338,839 |
Effect of exchange rate differences | 3,214,565 | -431 | -3,390,100 | -4,499 | -180,465 | 3,201,452 | 211 | -3,143,007 | 1,828 | 60,484 |
Closing balance of net insurance contract assets/liabilities | -163,972,606 | -13,326,424 | -776,675,403 | -46,290,462 | -1,000,264,895 | -126,019,092 | -7,846,181 | -774,481,710 | -51,337,257 | -959,684,240 |
Insurance contract assets | 7,394,662 | 12,767 | -1,559,697 | -17,648 | 5,830,084 | 3,630,253 | 6,861 | -1,697,532 | -79,864 | 1,859,718 |
Insurance contract liabilities | -171,367,268 | -13,339,191 | -775,115,706 | -46,272,814 | -1,006,094,979 | -129,649,345 | -7,853,042 | -772,784,178 | -51,257,393 | -961,543,958 |
345
in EUR | ||||||||
LIFE INSURANCE CONTRACTS MEASURED UNDER THE VARIABLE FEE APPROACH (VFA) | 2024 | 2023 | ||||||
Remaining coverage | Remaining coverage | |||||||
Excluding the loss component | Loss component | Incurred claims | TOTAL | Excluding the loss component | Loss component | Incurred claims | TOTAL | |
Opening balance of net insurance contract assets/liabilities | -544,666,496 | -961,297 | -10,504,039 | -556,131,832 | -468,769,964 | -2,297,618 | -9,109,713 | -480,177,295 |
Insurance contract assets | 0 | 0 | 0 | 0 | 17,472 | -13,642 | 0 | 3,830 |
Insurance contract liabilities | -544,666,496 | -961,297 | -10,504,039 | -556,131,832 | -468,787,436 | -2,283,976 | -9,109,713 | -480,181,125 |
Insurance revenue | 32,897,961 | 0 | 0 | 32,897,961 | 29,164,106 | 0 | 0 | 29,164,106 |
Contracts under the modified retrospective approach | 7,938,713 | 0 | 0 | 7,938,713 | 8,395,738 | 0 | 0 | 8,395,738 |
Contracts under the fair value approach | 1,597,398 | 0 | 0 | 1,597,398 | 1,196,176 | 0 | 0 | 1,196,176 |
Other contracts | 23,361,849 | 0 | 0 | 23,361,849 | 19,572,192 | 0 | 0 | 19,572,192 |
Insurance service expenses | -10,835,492 | 30,974 | -10,201,688 | -21,006,206 | -9,448,127 | 1,336,311 | -10,205,879 | -18,317,695 |
Incurred claims | 0 | 95,482 | -10,201,688 | -10,106,206 | 0 | 163,452 | -10,205,879 | -10,042,427 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 95,482 | -11,420,189 | -11,324,707 | 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 | 1,218,501 | 1,218,501 | 0 | 0 | 667,975 | 667,975 |
Insurance service operating expenses | -10,835,492 | -64,508 | 0 | -10,900,000 | -9,448,127 | 1,172,859 | 0 | -8,275,268 |
Amortisation of insurance acquisition cash flows | -10,835,492 | 0 | 0 | -10,835,492 | -9,448,127 | 0 | 0 | -9,448,127 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | -64,508 | 0 | -64,508 | 0 | 1,172,859 | 0 | 1,172,859 |
Investment components excluded from insurance revenue and insurance service expenses | 67,047,925 | 0 | -67,047,925 | 0 | 59,410,768 | 0 | -59,410,768 | 0 |
Net insurance finance income/expenses | -97,713,945 | 0 | -156,147 | -97,870,092 | -50,356,979 | 0 | -137,177 | -50,494,156 |
Cash flows | -119,805,676 | 0 | 77,279,168 | -42,526,508 | -104,668,950 | 0 | 68,359,496 | -36,309,454 |
Premiums received for insurance contracts issued | -134,231,309 | 0 | 0 | -134,231,309 | -119,628,972 | 0 | 0 | -119,628,972 |
Claims and other insurance service expenses paid, including investment components | 0 | 0 | 77,279,168 | 77,279,168 | 0 | 0 | 68,359,496 | 68,359,496 |
Insurance acquisition cash flows | 14,425,633 | 0 | 0 | 14,425,633 | 14,960,022 | 0 | 0 | 14,960,022 |
Effect of exchange rate differences | 78 | 0 | 682 | 760 | 10 | 0 | 2,660 | 2,670 |
Closing balance of net insurance contract assets/liabilities | -673,075,119 | -930,244 | -10,630,631 | -684,635,994 | -544,666,496 | -961,297 | -10,504,039 | -556,131,832 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -673,075,119 | -930,244 | -10,630,631 | -684,635,994 | -544,666,496 | -961,297 | -10,504,039 | -556,131,832 |
346
Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of Zavarovalnica Triglav
2024 | in EUR | ||||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON LIFE and HEALTH | LIFE | |||||||
Remaining coverage | Remaining coverage | ||||||||
Excluding the loss component | Loss component | Incurred claims | Total | Excluding the loss component | Loss component | Incurred claims | Total | TOTAL | |
Opening balance of net insurance contract assets/liabilities as at 1 January 2024 | -45,007,306 | -4,805,330 | -519,020 | -50,331,656 | -612,098,395 | -21,697,421 | -21,256,334 | -655,052,150 | -705,383,806 |
Insurance contract assets | 0 | 0 | 0 | 0 | 17,580,116 | -170,258 | -7,214,873 | 10,194,985 | 10,194,985 |
Insurance contract liabilities | -45,007,306 | -4,805,330 | -519,020 | -50,331,656 | -629,678,511 | -21,527,162 | -14,041,461 | -665,247,135 | -715,578,791 |
Insurance revenue | 38,569,689 | 0 | 0 | 38,569,689 | 44,782,190 | 0 | 0 | 44,782,190 | 83,351,879 |
Contracts under the modified retrospective approach | 500,776 | 0 | 0 | 500,776 | 9,708,032 | 0 | 0 | 9,708,032 | 10,208,808 |
Contracts under the fair value approach | 0 | 0 | 0 | 0 | 7,115,418 | 0 | 0 | 7,115,418 | 7,115,418 |
Other contracts | 38,068,913 | 0 | 0 | 38,068,913 | 27,958,740 | 0 | 0 | 27,958,740 | 66,027,653 |
Insurance service expenses | -6,233,642 | 2,347,679 | -13,844,638 | -17,730,601 | -8,105,842 | 1,336,260 | -20,040,539 | -26,810,120 | -44,540,722 |
Incurred claims | 0 | 1,680,515 | -13,844,638 | -12,164,122 | 0 | 930,800 | -20,040,539 | -19,109,739 | -31,273,862 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 1,680,515 | -17,981,056 | -16,300,541 | 0 | 930,800 | -22,522,132 | -21,591,333 | -37,891,874 |
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims) | 0 | 0 | 4,136,419 | 4,136,419 | 0 | 0 | 2,481,594 | 2,481,594 | 6,618,012 |
Insurance service operating expenses | -6,233,642 | 667,164 | 0 | -5,566,479 | -8,105,842 | 405,460 | 0 | -7,700,381 | -13,266,860 |
Amortisation of insurance acquisition cash flows | -6,233,642 | 0 | 0 | -6,233,642 | -8,105,842 | 0 | 0 | -8,105,842 | -14,339,484 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | 667,164 | 0 | 667,164 | 0 | 405,460 | 0 | 405,460 | 1,072,624 |
Investment components excluded from insurance revenue and insurance service expenses | 0 | 0 | 0 | 0 | 94,630,493 | 0 | -94,630,493 | 0 | 0 |
Net insurance finance income/expenses | -1,128,784 | -143,656 | 70,660 | -1,201,779 | -24,923,185 | -248,673 | -324,717 | -25,496,575 | -26,698,354 |
Cash flows | -28,757,537 | 0 | 13,138,865 | -15,618,672 | -68,530,050 | 0 | 113,880,725 | 45,350,676 | 29,732,003 |
Premiums received for insurance contracts issued | -35,602,280 | 0 | 0 | -35,602,280 | -79,616,296 | 0 | 0 | -79,616,296 | -115,218,576 |
Claims and other insurance service expenses paid, including investment components | 0 | 0 | 13,138,865 | 13,138,865 | 0 | 0 | 113,880,725 | 113,880,725 | 127,019,590 |
Insurance acquisition cash flows | 6,844,743 | 0 | 0 | 6,844,743 | 11,086,246 | 0 | 0 | 11,086,246 | 17,930,989 |
Closing balance of net insurance contract assets/liabilities as at 31 December 2024 | -42,557,580 | -2,601,307 | -1,154,133 | -46,313,019 | -574,244,787 | -20,609,834 | -22,371,358 | -617,225,979 | -663,538,999 |
Insurance contract assets | 122,175 | -15,153 | -47,276 | 59,746 | 22,164,662 | -61,548 | -8,183,087 | 13,920,027 | 13,979,774 |
Insurance contract liabilities | -42,679,755 | -2,586,155 | -1,106,856 | -46,372,766 | -596,409,449 | -20,548,286 | -14,188,272 | -631,146,007 | -677,518,773 |
347
2023 | in EUR | ||||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON LIFE and HEALTH | LIFE | |||||||
Remaining coverage | Remaining coverage | ||||||||
Excluding the loss component | Loss component | Incurred claims | Total | Excluding the loss component | Loss component | Incurred claims | Total | TOTAL | |
Opening balance of net insurance contract assets/liabilities as at 1 January 2024 | -45,356,068 | -19,692,989 | 815,774 | -64,233,282 | -626,216,860 | -22,943,777 | -20,609,803 | -669,770,440 | -734,003,722 |
Insurance contract assets | 0 | 0 | 0 | 0 | 11,611,742 | -20,243 | -5,519,973 | 6,071,526 | 6,071,526 |
Insurance contract liabilities | -45,356,068 | -19,692,989 | 815,774 | -64,233,282 | -637,828,602 | -22,923,534 | -15,089,830 | -675,841,966 | -740,075,248 |
Insurance revenue | 34,945,170 | 0 | 0 | 34,945,170 | 38,392,839 | 0 | 0 | 38,392,839 | 73,338,009 |
Contracts under the modified retrospective approach | 949,050 | 0 | 0 | 949,050 | 10,741,743 | 0 | 0 | 10,741,743 | 11,690,793 |
Contracts under the fair value approach | 0 | 0 | 0 | 0 | 4,352,602 | 0 | 0 | 4,352,602 | 4,352,602 |
Other contracts | 33,996,119 | 0 | 0 | 33,996,119 | 23,298,495 | 0 | 0 | 23,298,495 | 57,294,614 |
Insurance service expenses | -5,840,757 | 14,955,093 | -11,506,595 | -2,392,259 | -7,967,872 | 1,441,836 | -18,063,961 | -24,589,997 | -26,982,256 |
Incurred claims | 0 | 16,948,972 | -11,506,595 | 5,442,377 | 0 | 965,172 | -18,063,961 | -17,098,789 | -11,656,411 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 16,948,972 | -17,833,831 | -884,859 | 0 | 965,172 | -19,431,700 | -18,466,528 | -19,351,387 |
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims) | 0 | 0 | 6,327,236 | 6,327,236 | 0 | 0 | 1,367,740 | 1,367,740 | 7,694,976 |
Insurance service operating expenses | -5,840,757 | -1,993,879 | 0 | -7,834,636 | -7,967,872 | 476,664 | 0 | -7,491,208 | -15,325,845 |
Amortisation of insurance acquisition cash flows | -5,840,757 | 0 | 0 | -5,840,757 | -7,967,872 | 0 | 0 | -7,967,872 | -13,808,630 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | -1,993,879 | 0 | -1,993,879 | 0 | 476,664 | 0 | 476,664 | -1,517,215 |
Investment components excluded from insurance revenue and insurance service expenses | 0 | 0 | 0 | 0 | 92,331,494 | 0 | -92,331,494 | 0 | 0 |
Net insurance finance income/expenses | -1,865,707 | -67,435 | 190,106 | -1,743,036 | -36,054,367 | -195,480 | -248,308 | -36,498,155 | -38,241,191 |
Cash flows | -26,889,943 | 0 | 9,981,695 | -16,908,248 | -72,583,628 | 0 | 109,997,231 | 37,413,603 | 20,505,355 |
Premiums received for insurance contracts issued | -32,951,664 | 0 | 0 | -32,951,664 | -83,173,821 | 0 | 0 | -83,173,821 | -116,125,485 |
Claims and other insurance service expenses paid, including investment components | 0 | 0 | 9,981,695 | 9,981,695 | 0 | 0 | 109,997,231 | 109,997,231 | 119,978,926 |
Insurance acquisition cash flows | 6,061,721 | 0 | 0 | 6,061,721 | 10,590,192 | 0 | 0 | 10,590,192 | 16,651,914 |
Closing balance of net insurance contract assets/liabilities as at 31 December 2024 | -45,007,306 | -4,805,330 | -519,020 | -50,331,656 | -612,098,395 | -21,697,421 | -21,256,334 | -655,052,150 | -705,383,806 |
Insurance contract assets | 0 | 0 | 0 | 0 | 17,580,116 | -170,258 | -7,214,873 | 10,194,985 | 10,194,985 |
Insurance contract liabilities | -45,007,306 | -4,805,330 | -519,020 | -50,331,656 | -629,678,511 | -21,527,162 | -14,041,461 | -665,247,135 | -715,578,791 |
348
in EUR | ||||||||||
NON-LIFE AND HEALTH INSURANCE CONTRACTS MEASURED UNDER THE PREMIUM ALLOCATION APPROACH (PAA) | 2024 | 2023 | ||||||||
Remaining coverage | Incurred claims | 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 | 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 insurance contract assets/liabilities | -117,534,066 | -5,050,600 | -518,504,404 | -30,672,603 | -671,761,673 | -90,195,823 | -11,124,354 | -392,630,134 | -35,745,790 | -529,696,101 |
Insurance contract assets | 1,650,460 | -2,364 | -871,031 | -12,323 | 764,741 | 6,323,803 | -11,548 | -4,314,241 | -674,061 | 1,323,954 |
Insurance contract liabilities | -119,184,526 | -5,048,236 | -517,633,373 | -30,660,280 | -672,526,415 | -96,519,627 | -11,112,806 | -388,315,893 | -35,071,729 | -531,020,056 |
Insurance revenue | 795,981,861 | 0 | 0 | 0 | 795,981,861 | 884,207,681 | 0 | 0 | 0 | 884,207,681 |
Insurance service expenses | -117,230,778 | -3,440,340 | -467,505,263 | 6,806,610 | -581,369,771 | -113,199,174 | 6,073,753 | -842,911,036 | 6,419,793 | -943,616,664 |
Incurred claims | 0 | 0 | -467,505,263 | 6,806,610 | -460,698,653 | 0 | 0 | -842,911,036 | 6,419,793 | -836,491,243 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 0 | -487,088,081 | -9,954,726 | -497,042,808 | 0 | 0 | -850,818,544 | -18,118,949 | -868,937,493 |
Changes that relate to past service (e.g. changes in fulfilment cash flows relating to the liability for incurred claims) | 0 | 0 | 19,582,818 | 16,761,336 | 36,344,154 | 0 | 0 | 7,907,509 | 24,538,742 | 32,446,251 |
Insurance service operating expenses | -117,230,778 | -3,440,340 | 0 | 0 | -120,671,117 | -113,199,174 | 6,073,753 | 0 | 0 | -107,125,421 |
Amortisation of insurance acquisition cash flows | -117,230,778 | 0 | 0 | 0 | -117,230,778 | -113,199,174 | 0 | 0 | 0 | -113,199,174 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | -3,440,340 | 0 | 0 | -3,440,340 | 0 | 6,073,753 | 0 | 0 | 6,073,753 |
Net insurance finance income/expenses | 0 | 0 | -13,202,362 | -682,877 | -13,885,238 | 0 | 0 | -14,206,304 | -1,346,607 | -15,552,911 |
Cash flows | -702,605,056 | 0 | 523,793,709 | 0 | -178,811,347 | -798,346,749 | 0 | 731,243,071 | 0 | -67,103,678 |
Premiums received for insurance contracts issued | -830,955,384 | 0 | 0 | 0 | -830,955,384 | -916,978,021 | 0 | 0 | 0 | -916,978,021 |
Claims and other insurance service expenses paid, including investment components | 0 | 0 | 523,793,709 | 0 | 523,793,709 | 0 | 0 | 731,243,071 | 0 | 731,243,071 |
Insurance acquisition cash flows | 128,350,328 | 0 | 0 | 0 | 128,350,328 | 118,631,272 | 0 | 0 | 0 | 118,631,272 |
Closing balance of net insurance contract assets/liabilities | -141,388,038 | -8,490,940 | -475,418,320 | -24,548,870 | -649,846,168 | -117,534,066 | -5,050,600 | -518,504,404 | -30,672,603 | -671,761,673 |
Insurance contract assets | 640,213 | 0 | -175,578 | -12,261 | 452,373 | 1,650,460 | -2,364 | -871,031 | -12,323 | 764,741 |
Insurance contract liabilities | -142,028,251 | -8,490,940 | -475,242,741 | -24,536,609 | -650,298,542 | -119,184,526 | -5,048,236 | -517,633,373 | -30,660,280 | -672,526,415 |
349
in EUR | ||||||||
LIFE INSURANCE CONTRACTS MEASURED UNDER THE VARIABLE FEE APPROACH (VFA) | 2024 | 2023 | ||||||
Remaining coverage | Remaining coverage | |||||||
Excluding the loss component | Loss componen | Incurred claims | TOTAL | Excluding the loss component | Loss componen | Incurred claims | TOTAL | |
Opening balance of net insurance contract assets/liabilities | -520,859,182 | -794,170 | -10,192,082 | -531,845,434 | -450,557,148 | -1,565,508 | -8,835,951 | -460,958,607 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -520,859,182 | -794,170 | -10,192,082 | -531,845,434 | -450,557,148 | -1,565,508 | -8,835,951 | -460,958,607 |
Insurance revenue | 31,770,079 | 0 | 0 | 31,770,079 | 28,050,173 | 0 | 0 | 28,050,173 |
Contracts under the modified retrospective approach | 7,938,713 | 0 | 0 | 7,938,713 | 8,395,737 | 0 | 0 | 8,395,737 |
Contracts under the fair value approach | 1,386,249 | 0 | 0 | 1,386,249 | 976,232 | 0 | 0 | 976,232 |
Other contracts | 22,445,117 | 0 | 0 | 22,445,117 | 18,678,204 | 0 | 0 | 18,678,204 |
Insurance service expenses | -10,335,987 | 275,491 | -9,781,262 | -19,841,758 | -9,061,975 | 771,338 | -9,594,070 | -17,884,706 |
Incurred claims | 0 | 63,165 | -9,781,262 | -9,718,098 | 0 | 139,146 | -9,594,070 | -9,454,923 |
Incurred claims (excluding investment components) and other incurred insurance service expenses | 0 | 63,165 | -10,925,018 | -10,861,853 | 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 | 1,143,755 | 1,143,755 | 0 | 0 | 603,519 | 603,519 |
Insurance service operating expenses | -10,335,987 | 212,326 | 0 | -10,123,661 | -9,061,975 | 632,192 | 0 | -8,429,783 |
Amortisation of insurance acquisition cash flows | -10,335,987 | 0 | 0 | -10,335,987 | -9,061,975 | 0 | 0 | -9,061,975 |
Changes that relate to future service (i.e. losses on onerous contracts) | 0 | 212,326 | 0 | 212,326 | 0 | 632,192 | 0 | 632,192 |
Investment components excluded from insurance revenue and insurance service expenses | 65,307,948 | 0 | -65,307,948 | 0 | 57,619,270 | 0 | -57,619,270 | 0 |
Net insurance finance income/expenses | -95,414,516 | 0 | -153,663 | -95,568,179 | -46,417,854 | 0 | -134,223 | -46,552,077 |
Cash flows | -114,481,638 | 0 | 75,170,546 | -39,311,092 | -100,491,649 | 0 | 65,991,432 | -34,500,217 |
Premiums received for insurance contracts issued | -128,289,647 | 0 | 0 | -128,289,647 | -114,614,716 | 0 | 0 | -114,614,716 |
Claims and other insurance service expenses paid, including investment components | 0 | 0 | 75,170,546 | 75,170,546 | 0 | 0 | 65,991,432 | 65,991,432 |
Insurance acquisition cash flows | 13,808,009 | 0 | 0 | 13,808,009 | 14,123,067 | 0 | 0 | 14,123,067 |
Closing balance of net insurance contract assets/ | -644,013,295 | -518,680 | -10,264,410 | -654,796,385 | -520,859,182 | -794,170 | -10,192,082 | -531,845,434 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -644,013,295 | -518,680 | -10,264,410 | -654,796,385 | -520,859,182 | -794,170 | -10,192,082 | -531,845,434 |
350
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
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON-LIFE and 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 | -31,633,555 | -4,739,730 | -395,164 | 0 | -16,394,852 | -16,790,016 | -53,163,301 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -31,633,555 | -4,739,730 | -395,164 | 0 | -16,394,852 | -16,790,016 | -53,163,301 |
Changes | 17,895,776 | 782,428 | 166,508 | 0 | 2,439,327 | 2,605,835 | 21,284,039 |
Changes that relate to future services | 10,826,606 | -1,708,708 | -10,638 | 0 | -8,400,496 | -8,411,134 | 706,764 |
Changes in estimates that adjust the contractual service margin | 929,263 | -366,575 | -9,750 | 0 | -553,833 | -563,583 | -895 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 2,190,838 | 914,498 | -888 | 0 | -120,606 | -121,494 | 2,983,842 |
Effects of contracts initially recognised in the period | 7,706,505 | -2,256,631 | 0 | 0 | -7,726,057 | -7,726,057 | -2,276,183 |
Changes that relate to current services | 3,210,410 | 2,306,630 | 177,146 | 0 | 10,839,823 | 11,016,969 | 16,534,009 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 177,146 | 0 | 10,839,823 | 11,016,969 | 11,016,969 |
Release of the risk adjustment for non- financial risk | 0 | 2,306,630 | 0 | 0 | 0 | 0 | 2,306,630 |
Experience adjustment | 3,210,410 | 0 | 0 | 0 | 0 | 0 | 3,210,410 |
Changes that relate to past services | 3,858,760 | 184,506 | 0 | 0 | 0 | 0 | 4,043,266 |
Net finance income/expenses from insurance contracts | -611,128 | -191,958 | -7,052 | 0 | -462,720 | -469,772 | -1,272,858 |
Cash flows | -15,340,679 | 0 | 0 | 0 | 0 | 0 | -15,340,679 |
Premiums received | -35,602,280 | 0 | 0 | 0 | 0 | 0 | -35,602,280 |
Claims and other insurance service expenses paid, including investment component | 13,415,886 | 0 | 0 | 0 | 0 | 0 | 13,415,886 |
Insurance acquisition cash flows | 6,845,715 | 0 | 0 | 0 | 0 | 0 | 6,845,715 |
Effect of exchange rate differences | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Final balance of net insurance contract assets/liabilities | -29,689,583 | -4,149,261 | -235,707 | 0 | -14,418,246 | -14,653,953 | -48,492,797 |
Insurance contract assets | 114,826 | -4,628 | 0 | 0 | -50,452 | -50,452 | 59,746 |
Insurance contract liabilities | -29,804,409 | -4,144,633 | -235,707 | 0 | -14,367,794 | -14,603,501 | -48,552,543 |
351
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -607,460,781 | -20,372,525 | -22,829,363 | -10,077,106 | -88,833,485 | -121,739,954 | 749,573,260 |
Insurance contract assets | 91,500,120 | -10,966,798 | -10,278,596 | -394 | -60,020,173 | -70,299,163 | 10,234,159 |
Insurance contract liabilities | -698,960,901 | -9,405,727 | -12,550,767 | -10,076,712 | -28,813,312 | -51,440,791 | 759,807,419 |
Changes | 61,737,988 | -483,944 | 2,138,109 | -20,798,527 | -22,310,393 | -40,970,811 | 20,283,233 |
Changes that relate to future services | 74,590,105 | -3,051,502 | -2,460,504 | -25,269,676 | -37,307,053 | -65,037,233 | 6,501,370 |
Changes in estimates that adjust the contractual service margin | 45,625,238 | 388,543 | -2,460,504 | -25,121,810 | -12,907,265 | -40,489,579 | 5,524,202 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 5,213,007 | 276,336 | 0 | -147,866 | -507,274 | -655,140 | 4,834,203 |
Effects of contracts initially recognised in the period | 23,751,860 | -3,716,381 | 0 | 0 | -23,892,514 | -23,892,514 | -3,857,035 |
Changes that relate to current services | -11,741,229 | 725,050 | 4,598,613 | 4,471,149 | 14,996,660 | 24,066,422 | 13,050,243 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 4,598,613 | 4,471,149 | 14,996,660 | 24,066,422 | 24,066,422 |
Release of the risk adjustment for non- financial risk | 0 | 725,050 | 0 | 0 | 0 | 0 | 725,050 |
Experience adjustment | -11,741,229 | 0 | 0 | 0 | 0 | 0 | -11,741,229 |
Changes that relate to past services | -1,110,888 | 1,842,508 | 0 | 0 | 0 | 0 | 731,620 |
Net finance income/expenses from insurance contracts | -25,574,911 | -998,965 | -833,943 | -7,793 | -1,680,347 | -2,522,083 | -29,095,959 |
Cash flows | 38,148,521 | 0 | 0 | 0 | 0 | 0 | 38,148,521 |
Premiums received | -120,594,645 | 0 | 0 | 0 | 0 | 0 | 120,594,645 |
Claims and other insurance service expenses paid, including investment component | 138,055,411 | 0 | 0 | 0 | 0 | 0 | 138,055,411 |
Insurance acquisition cash flows | 20,687,755 | 0 | 0 | 0 | 0 | 0 | 20,687,755 |
Effect of exchange rate differences | -22,630 | -24 | 0 | -377 | -2,678 | -3,055 | -25,709 |
Final balance of net insurance contract assets/liabilities | -533,171,813 | -21,855,458 | -21,525,197 | -30,883,803 | -112,826,903 | -165,235,903 | -720,263,174 |
Insurance contract assets | 115,287,435 | -13,003,909 | -10,240,849 | -1,432 | -78,089,970 | -88,332,251 | 13,951,275 |
Insurance contract liabilities | -648,459,248 | -8,851,549 | -11,284,348 | -30,882,371 | -34,736,933 | -76,903,652 | -734,214,449 |
352
2023 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON-LIFE and 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 | -44,500,517 | -6,728,537 | -617,898 | 0 | -15,680,021 | -16,297,919 | -67,526,973 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -44,500,517 | -6,728,537 | -617,898 | 0 | -15,680,021 | -16,297,919 | -67,526,973 |
Changes | 30,557,602 | 2,429,593 | 232,450 | 0 | -485,954 | -253,504 | 32,733,691 |
Changes that relate to future services | 9,181,292 | -835,564 | -86,341 | 0 | -10,531,630 | -10,617,971 | -2,272,243 |
Changes in estimates that adjust the contractual service margin | 2,000,278 | 1,927,976 | -86,341 | 0 | -3,878,943 | -3,965,284 | -37,030 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 83,152 | 517,611 | 0 | 0 | -282,616 | -282,616 | 318,147 |
Effects of contracts initially recognised in the period | 7,097,862 | -3,281,151 | 0 | 0 | -6,370,071 | -6,370,071 | -2,553,360 |
Changes that relate to current services | 15,316,315 | 3,029,985 | 318,791 | 0 | 10,045,676 | 10,364,467 | 28,710,767 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 318,791 | 0 | 10,045,676 | 10,364,467 | 10,364,467 |
Release of the risk adjustment for non- financial risk | 0 | 3,029,985 | 0 | 0 | 0 | 0 | 3,029,985 |
Experience adjustment | 15,316,315 | 0 | 0 | 0 | 0 | 0 | 15,316,315 |
Changes that relate to past services | 6,059,995 | 235,172 | 0 | 0 | 0 | 0 | 6,295,167 |
Net finance income/expenses from insurance contracts | -1,207,707 | -440,784 | -9,715 | 0 | -228,876 | -238,591 | -1,887,082 |
Cash flows | -16,482,935 | 0 | 0 | 0 | 0 | 0 | -16,482,935 |
Premiums received | -33,641,897 | 0 | 0 | 0 | 0 | 0 | -33,641,897 |
Claims and other insurance service expenses paid, including investment component | 10,410,518 | 0 | 0 | 0 | 0 | 0 | 10,410,518 |
Insurance acquisition cash flows | 6,748,444 | 0 | 0 | 0 | 0 | 0 | 6,748,444 |
Effect of exchange rate differences | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Final balance of net insurance contract assets/liabilities | -31,633,557 | -4,739,729 | -395,164 | 0 | -16,394,852 | -16,790,016 | -53,163,302 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -31,633,557 | -4,739,729 | -395,164 | 0 | -16,394,852 | -16,790,016 | -53,163,302 |
353
2023 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -635,909,619 | -17,062,150 | -25,301,114 | -9,104,491 | -65,822,988 | -100,228,593 | 753,200,362 |
Insurance contract assets | 61,419,383 | -6,668,450 | -9,866,325 | -9,167 | -38,717,424 | -48,592,916 | 6,158,017 |
Insurance contract liabilities | -697,329,002 | -10,393,700 | -15,434,789 | -9,095,324 | -27,105,564 | -51,635,677 | 759,358,379 |
Changes | 40,780,358 | -2,055,780 | 2,706,854 | -102,579 | -26,585,229 | -23,980,954 | 14,743,624 |
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 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 |
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 |
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 |
Changes that relate to past services | -1,748,118 | 1,664,532 | 0 | 0 | 0 | 0 | -83,586 |
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 |
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 |
Effect of exchange rate differences | 10,082 | 530 | 0 | 154 | 1,481 | 1,635 | 12,247 |
Final balance of net insurance contract assets/liabilities | -607,460,781 | -20,372,525 | -22,829,363 | -10,077,106 | -88,833,485 | -121,739,954 | -749,573,260 |
Insurance contract assets | 91,500,120 | -10,966,798 | -10,278,596 | -394 | -60,020,173 | -70,299,163 | 10,234,159 |
Insurance contract liabilities | -698,960,901 | -9,405,727 | -12,550,767 | -10,076,712 | -28,813,312 | -51,440,791 | -759,807,419 |
354
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -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 |
Changes | 17,486,181 | 1,417,609 | 3,321,703 | -905,553 | -9,428,182 | -7,012,032 | 11,891,758 |
Changes that relate to future services | 23,713,353 | -506,183 | -136,267 | -1,419,573 | -18,024,230 | -19,580,070 | 3,627,100 |
Changes in estimates that adjust the contractual service margin | 2,180,469 | 1,579,936 | -136,267 | -272,244 | -782,568 | -1,191,079 | 2,569,326 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 2,194,868 | 58,905 | 0 | -1,147,329 | -34,378 | -1,181,707 | 1,072,066 |
Effects of contracts initially recognised in the period | 19,338,016 | -2,145,024 | 0 | 0 | -17,207,284 | -17,207,284 | -14,292 |
Changes that relate to current services | -6,638,926 | 1,117,045 | 3,457,970 | 514,020 | 8,596,048 | 12,568,038 | 7,046,157 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 3,457,970 | 514,020 | 8,596,048 | 12,568,038 | 12,568,038 |
Release of the risk adjustment for non- financial risk | 0 | 1,117,045 | 0 | 0 | 0 | 0 | 1,117,045 |
Experience adjustment | -6,638,926 | 0 | 0 | 0 | 0 | 0 | -6,638,926 |
Changes that relate to past services | 411,754 | 806,747 | 0 | 0 | 0 | 0 | 1,218,501 |
Net finance income/expenses from insurance contracts | -97,846,028 | -24,064 | 0 | 0 | 0 | 0 | -97,870,092 |
Cash flows | -42,526,508 | 0 | 0 | 0 | 0 | 0 | -42,526,508 |
Premiums received | -134,231,309 | 0 | 0 | 0 | 0 | 0 | -134,231,309 |
Claims and other insurance service expenses paid, including investment component | 77,279,168 | 0 | 0 | 0 | 0 | 0 | 77,279,168 |
Insurance acquisition cash flows | 14,425,633 | 0 | 0 | 0 | 0 | 0 | 14,425,633 |
Effect of exchange rate differences | 550 | 46 | 0 | 0 | 83 | 84 | 680 |
Final balance of net insurance contract assets/liabilities | -566,185,454 | -11,521,677 | -19,205,697 | -1,812,912 | -85,910,254 | -106,928,863 | -684,635,994 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -566,185,454 | -11,521,677 | -19,205,697 | -1,812,912 | -85,910,254 | -106,928,863 | -684,635,994 |
355
2023 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -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 | 44,714,118 | -3,855,389 | -3,526,094 | -905,942 | -25,580,284 | -30,012,320 | 10,846,409 |
Changes that relate to future services | 50,391,811 | -5,136,567 | -7,051,402 | -1,114,642 | -32,599,793 | -40,765,837 | 4,489,407 |
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 |
Changes that relate to current services | -5,607,635 | 543,145 | 3,525,308 | 208,700 | 7,019,509 | 10,753,517 | 5,689,027 |
Contractual service margin recognised in profit or loss for 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 |
Changes that relate to past services | -70,058 | 738,033 | 0 | 0 | 0 | 0 | 667,975 |
Net finance income/expenses from insurance contracts | -50,470,665 | -23,491 | 0 | 0 | 0 | 0 | -50,494,156 |
Cash flows | -36,309,454 | 0 | 0 | 0 | 0 | 0 | -36,309,454 |
Premiums received | -119,628,972 | 0 | 0 | 0 | 0 | 0 | -119,628,972 |
Claims and other insurance service expenses paid, including investment component | 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 |
Effect of exchange rate differences | 2,536 | -50 | 0 | 0 | 180 | 178 | 2,664 |
Final balance of net insurance contract assets/liabilities | -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 |
356
The present value of expected cash flows, risk adjustment for non-financial risk and contractual
service margin of Zavarovalnica Triglav
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON-LIFE and 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 | -29,878,552 | -4,628,235 | -395,164 | 0 | -15,429,705 | -15,824,868 | -50,331,656 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -29,878,552 | -4,628,235 | -395,164 | 0 | -15,429,705 | -15,824,868 | -50,331,656 |
Changes | 17,479,041 | 700,732 | 166,509 | 0 | 2,492,806 | 2,659,315 | 20,839,088 |
Changes that relate to future services | 10,426,707 | -1,773,133 | -10,638 | 0 | -7,975,772 | -7,986,410 | 667,164 |
Changes in estimates that adjust the contractual service margin | 564,006 | -426,043 | -9,750 | 0 | -129,108 | -138,858 | -894 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 2,156,195 | 909,540 | -888 | 0 | -120,606 | -121,494 | 2,944,241 |
Effects of contracts initially recognised in the period | 7,706,506 | -2,256,631 | 0 | 0 | -7,726,057 | -7,726,057 | -2,276,183 |
Changes that relate to current services | 3,103,309 | 2,286,472 | 177,146 | 0 | 10,468,578 | 10,645,725 | 16,035,506 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 177,146 | 0 | 10,468,578 | 10,645,725 | 10,645,725 |
Release of the risk adjustment for non-financial risk | 0 | 2,286,472 | 0 | 0 | 0 | 0 | 2,286,472 |
Experience adjustment | 3,103,309 | 0 | 0 | 0 | 0 | 0 | 3,103,309 |
Changes that relate to past services | 3,949,025 | 187,394 | 0 | 0 | 0 | 0 | 4,136,419 |
Net finance income/expenses from insurance contracts | -547,838 | -186,678 | -7,052 | 0 | -460,212 | -467,264 | -1,201,779 |
Cash flows | -15,618,672 | 0 | 0 | 0 | 0 | 0 | -15,618,672 |
Premiums received | -35,602,280 | 0 | 0 | 0 | 0 | 0 | -35,602,280 |
Claims and other insurance service expenses paid, including investment component | 13,138,865 | 0 | 0 | 0 | 0 | 0 | 13,138,865 |
Insurance acquisition cash flows | 6,844,743 | 0 | 0 | 0 | 0 | 0 | 6,844,743 |
Final balance of net insurance contract assets/liabilities | -28,566,021 | -4,114,181 | -235,707 | 0 | -13,397,110 | -13,632,817 | -46,313,019 |
Insurance contract assets | 114,826 | -4,628 | 0 | 0 | -50,452 | -50,452 | 59,746 |
Insurance contract liabilities | -28,680,847 | -4,109,553 | -235,707 | 0 | -13,346,658 | -13,582,366 | -46,372,766 |
357
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -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 |
Changes | 56,184,877 | 602,898 | 2,138,109 | -20,861,529 | -20,092,285 | -38,815,705 | 17,972,070 |
Changes that relate to future services | 67,647,479 | -1,585,713 | -2,460,504 | -25,045,753 | -31,464,336 | -58,970,594 | 7,091,172 |
Changes in estimates that adjust the contractual service margin | 45,574,023 | 1,219,749 | -2,460,504 | -24,937,635 | -14,485,440 | -41,883,579 | 4,910,193 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 3,029,677 | 204,664 | 0 | -108,119 | -84,195 | -192,314 | 3,042,026 |
Effects of contracts initially recognised in the period | 19,043,779 | -3,010,126 | 0 | 0 | -16,894,701 | -16,894,701 | -861,048 |
Changes that relate to current services | -12,177,513 | 421,928 | 4,598,613 | 4,184,224 | 11,372,051 | 20,154,889 | 8,399,304 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 4,598,613 | 4,184,224 | 11,372,051 | 20,154,889 | 20,154,889 |
Release of the risk adjustment for non-financial risk | 0 | 421,928 | 0 | 0 | 0 | 0 | 421,928 |
Experience adjustment | -12,177,513 | 0 | 0 | 0 | 0 | 0 | -12,177,513 |
Changes that relate to past services | 714,911 | 1,766,683 | 0 | 0 | 0 | 0 | 2,481,594 |
Net finance income/expenses from insurance contracts | -22,407,320 | -923,725 | -833,943 | -6,697 | -1,324,890 | -2,165,530 | -25,496,575 |
Cash flows | 45,350,676 | 0 | 0 | 0 | 0 | 0 | 45,350,676 |
Premiums received | -79,616,296 | 0 | 0 | 0 | 0 | 0 | -79,616,296 |
Claims and other insurance service expenses paid, including investment component | 113,880,725 | 0 | 0 | 0 | 0 | 0 | 113,880,725 |
Insurance acquisition cash flows | 11,086,246 | 0 | 0 | 0 | 0 | 0 | 11,086,246 |
Final balance of net insurance contract assets/liabilities | -446,251,029 | -19,100,049 | -21,525,197 | -29,777,784 | -100,571,921 | -151,874,902 | -617,225,979 |
Insurance contract assets | 115,086,654 | -12,985,053 | -10,240,849 | -78 | -77,940,647 | -88,181,573 | 13,920,027 |
Insurance contract liabilities | -561,337,683 | -6,114,996 | -11,284,348 | -29,777,706 | -22,631,274 | -63,693,328 | -631,146,007 |
358
2023 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | NON-LIFE and 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 | -42,197,992 | -6,581,672 | -617,898 | 0 | -14,835,720 | -15,453,618 | -64,233,282 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -42,197,992 | -6,581,672 | -617,898 | 0 | -14,835,720 | -15,453,618 | -64,233,282 |
Changes | 30,304,332 | 2,385,546 | 232,449 | 0 | -369,417 | -136,968 | 32,552,910 |
Changes that relate to future services | 9,053,651 | -851,785 | -86,341 | 0 | -10,109,404 | -10,195,745 | -1,993,879 |
Changes in estimates that adjust the contractual service margin | 2,031,212 | 1,895,732 | -86,341 | 0 | -3,844,813 | -3,931,154 | -4,211 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 83,152 | 517,611 | 0 | 0 | -37,073 | -37,073 | 563,690 |
Effects of contracts initially recognised in the period | 6,939,287 | -3,265,128 | 0 | 0 | -6,227,518 | -6,227,518 | -2,553,359 |
Changes that relate to current services | 15,159,445 | 3,001,331 | 318,791 | 0 | 9,739,987 | 10,058,777 | 28,219,553 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 318,791 | 0 | 9,739,987 | 10,058,777 | 10,058,777 |
Release of the risk adjustment for non-financial risk | 0 | 3,001,331 | 0 | 0 | 0 | 0 | 3,001,331 |
Experience adjustment | 15,159,445 | 0 | 0 | 0 | 0 | 0 | 15,159,445 |
Changes that relate to past services | 6,091,236 | 236,001 | 0 | 0 | 0 | 0 | 6,327,236 |
Net finance income/expenses from insurance contracts | -1,076,645 | -432,109 | -9,715 | 0 | -224,567 | -234,283 | -1,743,036 |
Cash flows | -16,908,248 | 0 | 0 | 0 | 0 | 0 | -16,908,248 |
Premiums received | -32,951,664 | 0 | 0 | 0 | 0 | 0 | -32,951,664 |
Claims and other insurance service expenses paid, including investment component | 9,981,695 | 0 | 0 | 0 | 0 | 0 | 9,981,695 |
Insurance acquisition cash flows | 6,061,721 | 0 | 0 | 0 | 0 | 0 | 6,061,721 |
Final balance of net insurance contract assets/liabilities | -29,878,552 | -4,628,235 | -395,164 | 0 | -15,429,705 | -15,824,868 | -50,331,656 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -29,878,552 | -4,628,235 | -395,164 | 0 | -15,429,705 | -15,824,868 | -50,331,656 |
359
2023 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -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 | -623,125,920 | -9,048,978 | -15,434,789 | -8,746,555 | -19,485,723 | -43,667,068 | 675,841,966 |
Changes | 36,884,771 | -1,924,166 | 2,706,854 | 531,348 | -24,395,965 | -21,157,763 | 13,802,842 |
Changes that relate to future services | 42,255,273 | -3,574,354 | -2,334,936 | -922,692 | -33,310,487 | -36,568,116 | 2,112,803 |
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 |
Changes that relate to current services | -5,160,943 | 72,889 | 5,041,790 | 1,454,041 | 8,914,523 | 15,410,353 | 10,322,299 |
Contractual service margin recognised in profit or loss for service provided | 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 |
Changes that relate to past services | -209,559 | 1,577,299 | 0 | 0 | 0 | 0 | 1,367,740 |
Net finance income/expenses from insurance contracts | -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 | -83,173,821 | 0 | 0 | 0 | 0 | 0 | -83,173,821 |
Claims and other insurance service expenses paid, including investment component | 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 |
Final balance of net insurance contract assets/liabilities | -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 |
360
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -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 |
Changes | 17,709,752 | 1,401,313 | 3,321,703 | -927,334 | -9,577,114 | -7,182,745 | 11,928,320 |
Changes that relate to future services | 23,760,806 | -439,508 | -136,267 | -1,432,498 | -18,056,453 | -19,625,217 | 3,696,081 |
Changes in estimates that adjust the contractual service margin | 3,068,362 | 1,568,156 | -136,267 | -285,169 | -1,453,644 | -1,875,080 | 2,761,439 |
Changes in estimates that do not adjust the contractual service margin, i.e. losses on groups of onerous contracts and reversals of such losses | 2,053,841 | 49,328 | 0 | -1,147,329 | -14,135 | -1,161,464 | 941,705 |
Effects of contracts initially recognised in the period | 18,638,602 | -2,056,992 | 0 | 0 | -16,588,673 | -16,588,673 | -7,063 |
Changes that relate to current services | -6,399,277 | 1,045,290 | 3,457,970 | 505,164 | 8,479,338 | 12,442,472 | 7,088,484 |
Contractual service margin recognised in profit or loss for service provided | 0 | 0 | 3,457,970 | 505,164 | 8,479,338 | 12,442,472 | 12,442,472 |
Release of the risk adjustment for non-financial risk | 0 | 1,045,290 | 0 | 0 | 0 | 0 | 1,045,290 |
Experience adjustment | -6,399,277 | 0 | 0 | 0 | 0 | 0 | -6,399,277 |
Changes that relate to past services | 348,224 | 795,531 | 0 | 0 | 0 | 0 | 1,143,755 |
Net finance income/expenses from insurance contracts | -95,544,351 | -23,828 | 0 | 0 | 0 | 0 | -95,568,179 |
Cash flows | -39,311,092 | 0 | 0 | 0 | 0 | 0 | -39,311,092 |
Premiums received | -128,289,647 | 0 | 0 | 0 | 0 | 0 | -128,289,647 |
Claims and other insurance service expenses paid, including investment component | 75,170,546 | 0 | 0 | 0 | 0 | 0 | 75,170,546 |
Insurance acquisition cash flows | 13,808,009 | 0 | 0 | 0 | 0 | 0 | 13,808,009 |
Final balance of net insurance contract assets/liabilities | -537,883,993 | -10,981,013 | -19,205,697 | -1,758,786 | -84,966,895 | -105,931,378 | -654,796,385 |
Insurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insurance contract liabilities | -537,883,993 | -10,981,013 | -19,205,697 | -1,758,786 | -84,966,895 | -105,931,378 | -654,796,385 |
361
2023 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE 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 | -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 | 44,438,791 | -3,849,892 | -3,526,094 | -831,308 | -26,066,030 | -30,423,432 | 10,165,467 |
Changes that relate to future services | 50,083,643 | -5,045,170 | -7,051,402 | -1,027,817 | -32,947,141 | -41,026,360 | 4,012,113 |
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 |
Changes that relate to current services | -5,528,913 | 475,820 | 3,525,308 | 196,509 | 6,881,111 | 10,602,928 | 5,549,835 |
Contractual service margin recognised in profit or loss for 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 |
Changes that relate to past services | -115,939 | 719,457 | 0 | 0 | 0 | 0 | 603,519 |
Net finance income/expenses from insurance contracts | -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 | -114,614,716 | 0 | 0 | 0 | 0 | 0 | -114,614,716 |
Claims and other insurance service expenses paid, including investment component | 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 |
Final balance of net insurance contract assets/liabilities | -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 |
362
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 2024 and which are not measured according to the premium allocation approach
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
2023 | in EUR | |||||
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD | NON-LIFE | LIFE | ||||
General model (BBA) | General model (BBA) | Variable fee aproach (VFA) | ||||
Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | |
Estimates of the present value of future cash outflows | -12,633,927 | -9,938,777 | -58,741,939 | -17,438,460 | -101,873,430 | -13,484,604 |
Incurred claims and other incurred insurance service expenses | -9,872,698 | -7,194,689 | -43,009,886 | -14,295,150 | -89,260,554 | -11,536,083 |
Insurance acquisition cash flows | -2,761,229 | -2,744,088 | -15,732,053 | -3,143,310 | -12,612,876 | -1,948,521 |
Estimates of the present value of future cash inflows | 20,980,059 | 8,690,507 | 79,352,661 | 14,407,609 | 121,440,141 | 13,429,648 |
Risk adjustment for non-financial risk | -1,976,062 | -1,305,089 | -2,446,831 | -265,823 | -1,765,745 | -67,626 |
Contractual service margin | -6,370,071 | 0 | -18,163,622 | 0 | -17,800,965 | 0 |
Total liability on initial recognition | 0 | -2,553,359 | 269 | -3,296,674 | 0 | -122,582 |
The effects of the Zavarovalnica Triglav
insurance contracts for which initial recognition was
carried out in 2024 and which are not measured according to the premium allocation approach
2024 | in EUR | |||||
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD | NON-LIFE and HEALTH | LIFE | ||||
General model (BBA) | General model (BBA) | Variable fee aproach (VFA) | ||||
Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | |
Estimates of the present value of future cash outflows | -15,034,476 | -10,848,076 | -44,010,862 | -6,239,065 | -124,672,890 | -220,206 |
Incurred claims and other incurred insurance service expenses | -11,571,927 | -7,755,527 | -33,340,548 | -6,069,848 | -111,822,153 | -202,547 |
Insurance acquisition cash flows | -3,462,549 | -3,092,549 | -10,670,314 | -169,217 | -12,850,736 | -17,659 |
Estimates of the present value of future cash inflows | 24,143,422 | 9,445,635 | 63,770,613 | 5,523,094 | 143,315,904 | 215,794 |
Risk adjustment for non-financial risk | -1,382,889 | -873,742 | -2,865,050 | -145,077 | -2,054,341 | -2,651 |
Contractual service margin | -7,726,057 | 0 | -16,894,701 | 0 | -16,588,673 | 0 |
Total liability on initial recognition | 0 | -2,276,183 | 0 | -861,048 | 0 | -7,063 |
2024 | in EUR | |||||
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD | NON-LIFE | LIFE | ||||
General model (BBA) | General model (BBA) | Variable fee aproach (VFA) | ||||
Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | |
Estimates of the present value of future cash outflows | -15,034,476 | -10,848,076 | -67,180,859 | -20,852,953 | -131,495,222 | -424,971 |
Incurred claims and other incurred insurance service expenses | -11,571,927 | -7,755,527 | -51,128,383 | -17,227,806 | -117,917,706 | -355,052 |
Insurance acquisition cash flows | -3,462,549 | -3,092,549 | -16,052,476 | -3,625,147 | -13,577,516 | -69,919 |
Estimates of the present value of future cash inflows | 24,143,422 | 9,445,635 | 94,439,422 | 17,343,897 | 150,842,560 | 415,207 |
Risk adjustment for non-financial risk | -1,382,889 | -873,742 | -3,368,120 | -348,096 | -2,140,460 | -4,528 |
Contractual service margin | -7,726,057 | 0 | -23,890,442 | 0 | -17,206,878 | 0 |
Total liability on initial recognition | 0 | -2,276,183 | 0 | -3,857,152 | 0 | -14,292 |
363
The effects of the Zavarovalnica Triglav
insurance contracts for which initial recognition was
carried out in 2023 and which are not measured according to the premium allocation approach
2023 | in EUR | |||||
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD | NON-LIFE and HEALTH | LIFE | ||||
General model (BBA) | General model (BBA) | Variable fee aproach (VFA) | ||||
Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | Profitable contracts issued | Onerous contracts issued | |
Estimates of the present value of future cash outflows | -12.107.848 | -9.938.777 | -39.894.992 | -6.515.898 | -100.629.028 | -13.402.262 |
Incurred claims and other incurred insurance service expenses | -9.611.266 | -7.194.689 | -28.763.909 | -6.325.862 | -88.751.160 | -11.459.653 |
Insurance acquisition cash flows | -2.496.582 | -2.744.088 | -11.131.083 | -190.036 | -11.877.868 | -1.942.609 |
Estimates of the present value of future cash inflows | 20.295.406 | 8.690.506 | 54.012.004 | 5.713.175 | 116.775.973 | 13.307.797 |
Risk adjustment for non-financial risk | -1.960.040 | -1.305.088 | -2.176.265 | -156.165 | -1.628.126 | -67.186 |
Contractual service margin | -6.227.518 | 0 | -11.940.747 | 0 | -14.518.820 | 0 |
Total liability on initial recognition | 0 | -2.553.359 | 0 | -958.888 | 0 | -161.652 |
364
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 | ||||||||
CONTRACTUAL SERVICE MARGIN AS AT 31 DEC 2024 | < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | TOTAL |
Non-life insurance contracts | 7,018,172 | 2,785,444 | 1,741,691 | 1,099,965 | 647,331 | 1,124,863 | 236,488 | 14,653,954 |
General model (BBA) | 7,018,172 | 2,785,444 | 1,741,691 | 1,099,965 | 647,331 | 1,124,863 | 236,488 | 14,653,954 |
Life insurance contracts | 33,584,624 | 29,704,164 | 26,366,956 | 23,347,442 | 20,659,141 | 72,793,090 | 65,709,355 | 272,164,772 |
General model (BBA) | 21,263,383 | 18,185,883 | 15,691,580 | 13,579,208 | 11,792,565 | 41,469,380 | 43,253,909 | 165,235,908 |
Variable fee approach (VFA) | 12,321,241 | 11,518,281 | 10,675,376 | 9,768,234 | 8,866,576 | 31,323,710 | 22,455,446 | 106,928,864 |
TOTAL | 40,602,796 | 32,489,608 | 28,108,647 | 24,447,407 | 21,306,472 | 73,917,953 | 65,945,843 | 286,818,726 |
in EUR | ||||||||
NET INSURANCE CONTRACT ASSETS AS AT 31 DEC 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 | 7,653,758 | 3,998,900 | 1,755,030 | 1,129,613 | 714,900 | 1,260,773 | 277,040 | 16,790,014 |
General model (BBA) | 7,653,758 | 3,998,900 | 1,755,030 | 1,129,613 | 714,900 | 1,260,773 | 277,040 | 16,790,014 |
Life insurance contracts | 27,364,157 | 24,260,172 | 21,646,548 | 19,223,121 | 17,023,525 | 60,101,320 | 52,038,026 | 221,656,869 |
General model (BBA) | 16,280,534 | 13,841,152 | 11,914,103 | 10,247,785 | 8,819,200 | 30,148,660 | 30,488,520 | 121,739,954 |
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 | 35,017,915 | 28,259,072 | 23,401,578 | 20,352,734 | 17,738,425 | 61,362,093 | 52,315,066 | 238,446,883 |
Presentation of the expected release of the contractual service margin of Zavarovalnica Triglav
in EUR | ||||||||
NET INSURANCE CONTRACT ASSETS AS AT 31 DEC 2024 | < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | TOTAL |
Non-life insurance contracts | 6,711,454 | 2,537,549 | 1,551,742 | 967,713 | 568,092 | 1,059,779 | 236,488 | 13,632,817 |
General model (BBA) | 6,711,454 | 2,537,549 | 1,551,742 | 967,713 | 568,092 | 1,059,779 | 236,488 | 13,632,817 |
Life insurance contracts | 30,307,444 | 27,310,871 | 24,479,092 | 21,889,654 | 19,558,556 | 70,047,460 | 64,213,202 | 257,806,280 |
General model (BBA) | 18,127,397 | 15,917,787 | 13,909,087 | 12,203,695 | 10,760,913 | 38,966,880 | 41,989,142 | 151,874,902 |
Variable fee approach (VFA) | 12,180,046 | 11,393,084 | 10,570,005 | 9,685,959 | 8,797,644 | 31,080,580 | 22,224,059 | 105,931,378 |
TOTAL | 37,018,898 | 29,848,420 | 26,030,835 | 22,857,367 | 20,126,648 | 71,107,240 | 64,449,690 | 271,439,097 |
365
in EUR | ||||||||
NET INSURANCE CONTRACT ASSETS AS AT 31 DEC 2024 | < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | TOTAL |
Non-life insurance contracts | 7,395,834 | 3,782,894 | 1,581,407 | 997,534 | 624,208 | 1,165,997 | 276,996 | 15,824,868 |
General model (BBA) | 7,395,834 | 3,782,894 | 1,581,407 | 997,534 | 624,208 | 1,165,997 | 276,996 | 15,824,868 |
Life insurance contracts | 24,704,932 | 22,366,323 | 20,132,769 | 18,017,906 | 16,083,549 | 57,770,006 | 50,566,815 | 209,642,300 |
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 | 32,100,766 | 26,149,216 | 21,714,176 | 19,015,439 | 16,707,757 | 58,936,003 | 50,843,811 | 225,467,168 |
3.1.8
Claims development
Non-life claims development of the Triglav Group
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of gross claims | |||||||||||
– at the end of year of occurrence | -58,455,843 | -35,833,867 | -43,927,705 | -44,507,608 | -172,365,426 | -141,579,965 | -633,298,667 | -836,518,120 | 1,159,955,582 | -785,003,641 | |
– 1 year after year of occurrence | -53,589,151 | -37,924,601 | -44,534,436 | -45,004,584 | -166,242,930 | -259,800,148 | -669,264,052 | -846,753,453 | 1,157,356,670 | 0 | |
– 2 years after year of occurrence | -52,327,914 | -37,415,490 | -44,981,096 | -45,409,491 | -220,593,059 | -245,167,692 | -646,244,105 | -854,142,948 | 0 | 0 | |
– 3 years after year of occurrence | -52,095,752 | -37,811,796 | -45,365,942 | -75,319,185 | -211,864,832 | -242,334,838 | -632,702,226 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -51,893,842 | -38,477,763 | -65,606,209 | -71,974,859 | -211,642,574 | -242,872,352 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -53,332,768 | -145,359,562 | -64,155,917 | -63,593,179 | -205,401,721 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | -54,055,766 | -136,898,686 | -67,116,490 | -62,172,678 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -52,550,683 | -129,421,917 | -65,625,422 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -52,244,719 | -127,516,120 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | -51,973,045 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cumulative payments up to the balance sheet date | -47,267,048 | -49,228,651 | -51,248,896 | -53,193,572 | -173,358,460 | -195,845,221 | -572,937,342 | -765,614,855 | -967,606,887 | -412,574,803 | |
Gross liabilities | -4,705,997 | -78,287,469 | -14,376,526 | -8,979,106 | -32,043,261 | -47,027,131 | -59,764,884 | -88,528,093 | -189,749,783 | -372,428,838 | -895.891.088 |
Gross liabilities of previous years | -3.875.591 | ||||||||||
Discounting effect | 75.586.822 | ||||||||||
Net liabilities for incurred claims included in the financial statements | -824,179,857 |
366
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of net claims | |||||||||||
– at the end of year of occurrence | -58,455,843 | -34,981,865 | -43,664,638 | -44,332,108 | -157,796,029 | -117,217,768 | -554,551,601 | -753,457,584 | -900,835,423 | -669,544,060 | |
– 1 year after year of occurrence | -52,156,273 | -35,674,949 | -44,147,550 | -44,851,030 | -151,047,465 | -197,364,855 | -555,638,887 | -741,472,980 | -885,194,630 | 0 | |
– 2 years after year of occurrence | -50,992,064 | -35,023,721 | -44,633,666 | -45,257,590 | -192,793,182 | -186,680,646 | -543,775,432 | -735,637,749 | 0 | 0 | |
– 3 years after year of occurrence | -50,043,400 | -35,419,020 | -44,978,043 | -68,537,482 | -184,450,510 | -175,172,512 | -545,764,921 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -49,856,975 | -36,084,311 | -61,539,251 | -65,122,709 | -182,687,209 | -173,814,492 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -51,281,385 | -140,010,238 | -60,808,754 | -57,187,891 | -174,381,279 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | -48,970,334 | -132,897,016 | -63,554,910 | -55,663,435 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -48,203,099 | -124,839,722 | -62,917,869 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -48,177,698 | -123,024,552 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | -47,796,551 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cumulative payments up to the balance sheet date | -44,497,729 | -45,127,779 | -49,282,830 | -48,504,797 | -153,064,212 | -147,179,364 | -513,364,411 | -681,824,756 | -783,153,017 | -380,991,224 | |
Net liabilities | -3,298,822 | -77,896,773 | -13,635,039 | -7,158,638 | -21,317,067 | -26,635,128 | -32,400,510 | -53,812,993 | -102,041,613 | -288,552,836 | -626.749.419 |
Net liabilities of previous years | 3.908.534 | ||||||||||
Discounting effect | 66.824.516 | ||||||||||
Net liabilities for incurred claims included in the financial statements | -556.016.369 |
Life claims development of the Triglav Group
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of gross claims | |||||||||||
– at the end of year of occurrence | -14,386,984 | -21,735,265 | -53,277,750 | -36,440,597 | -44,882,573 | -58,259,542 | -99,994,315 | -180,363,333 | -202,436,278 | -218,153,874 | |
– 1 year after year of occurrence | -13,678,534 | -20,280,430 | -52,248,400 | -34,965,956 | -42,685,099 | -86,136,357 | -99,040,501 | -179,387,741 | -200,886,861 | 0 | |
– 2 years after year of occurrence | -13,599,658 | -20,064,387 | -51,806,572 | -34,458,252 | -76,104,760 | -85,559,839 | -98,658,331 | -178,856,585 | 0 | 0 | |
– 3 years after year of occurrence | -13,615,224 | -19,898,607 | -51,737,829 | -66,992,310 | -75,904,436 | -85,749,054 | -98,424,131 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -13,608,409 | -19,918,903 | -97,128,699 | -67,004,616 | -76,133,688 | -85,916,962 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -13,637,568 | -37,502,281 | -97,112,399 | -67,178,885 | -76,151,635 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | -30,173,319 | -37,528,413 | -97,160,241 | -67,176,752 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -30,173,020 | -37,581,335 | -97,147,755 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -30,205,274 | -37,662,394 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | -30,226,703 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Cumulative payments up to the balance sheet date | -30,035,960 | -37,258,112 | -96,792,886 | -66,798,961 | -75,609,893 | -85,128,046 | -97,451,559 | -176,602,799 | -195,922,799 | -193,253,368 | |
Gross liabilities | -190,743 | -404,282 | -354,869 | -377,791 | -541,742 | -788,916 | -972,572 | -2,253,786 | -4,964,062 | -24,900,506 | -35,749,269 |
Gross liabilities of previous years | -378,544 | ||||||||||
Discounting effect | 658,148 | ||||||||||
Gross liabilities for incurred claims included in the financial statements | -35,469,665 |
367
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of net claims | |||||||||||
– at the end of year of occurrence | -14,386,984 | -21,735,265 | -53,277,750 | -36,440,597 | -44,724,691 | -57,803,607 | -98,744,870 | -179,571,760 | -201,345,098 | -216,122,747 | |
– 1 year after year of occurrence | -13,678,534 | -20,280,430 | -52,248,400 | -34,965,956 | -42,685,099 | -85,887,625 | -98,256,293 | -178,432,391 | -199,646,135 | 0 | |
– 2 years after year of occurrence | -13,599,658 | -20,064,387 | -51,806,572 | -34,458,252 | -76,104,760 | -85,301,682 | -97,861,346 | -177,894,960 | 0 | 0 | |
– 3 years after year of occurrence | -13,615,224 | -19,898,607 | -51,737,829 | -66,992,310 | -75,904,436 | -85,475,406 | -97,625,186 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -13,608,409 | -19,918,903 | -97,128,699 | -67,004,616 | -76,133,688 | -85,643,706 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -13,637,568 | -37,502,281 | -97,112,399 | -67,178,885 | -76,151,635 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | -30,173,319 | -37,528,413 | -97,160,241 | -67,176,752 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -30,173,020 | -37,581,335 | -97,147,755 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -30,205,274 | -37,662,394 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | -30,226,703 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cumulative payments up to the balance sheet date | -30,035,960 | -37,258,112 | -96,792,886 | -66,798,961 | -75,609,893 | -84,859,002 | -96,652,614 | -175,645,672 | -194,697,782 | -192,159,339 | |
Net liabilities | -190,743 | -404,282 | -354,869 | -377,791 | -541,742 | -784,704 | -972,572 | -2,249,288 | -4,948,353 | -23,963,408 | -34,787,752 |
Net liabilities of previous years | -378,544 | ||||||||||
Discounting effect | 649,839 | ||||||||||
Net liabilities for incurred claims included in the financial statements | -34,516,457 |
Non-life claims development of Zavarovalnica Triglav
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of gross claims | |||||||||||
– at the end of year of occurrence | -1,854,864 | -2,738,258 | -3,624,457 | -4,134,287 | -5,102,050 | -9,169,890 | -445,223,632 | -644,185,807 | -899,902,048 | -523,529,282 | |
– 1 year after year of occurrence | -2,002,500 | -3,031,166 | -4,282,442 | -5,684,507 | -6,747,208 | -87,315,479 | -465,627,636 | -641,711,235 | -888,629,358 | 0 | |
– 2 years after year of occurrence | -1,978,188 | -2,926,974 | -4,047,463 | -5,452,307 | -38,419,811 | -81,322,740 | -448,187,340 | -638,166,562 | 0 | 0 | |
– 3 years after year of occurrence | -1,902,410 | -2,825,846 | -3,907,803 | -24,457,070 | -34,565,616 | -75,022,804 | -432,257,776 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -1,869,136 | -2,767,715 | -20,991,393 | -22,548,601 | -35,327,877 | -77,249,128 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -1,838,694 | -107,604,960 | -20,523,649 | -15,196,918 | -34,128,493 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | -1,823,988 | -99,193,401 | -22,916,996 | -14,103,029 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -1,669,520 | -92,167,319 | -21,229,489 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -1,548,348 | -90,077,286 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | -1,449,694 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cumulative payments up to the balance sheet date | -1,452,015 | -13,472,290 | -9,202,839 | -9,164,343 | -18,667,829 | -57,198,074 | -395,069,876 | -579,684,619 | -766,481,003 | -309,858,186 | |
Gross liabilities | 2,320 | -76,604,996 | -12,026,651 | -4,938,686 | -15,460,664 | -20,051,053 | -37,187,900 | -58,481,943 | -122,148,355 | -213,671,097 | -560,569,024 |
Gross liabilities of previous years | 20,694 | ||||||||||
Discounting effect | 59,427,007 | ||||||||||
Gross liabilities for incurred claims included in the financial statements | -501,121,322 |
368
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of net claims | |||||||||||
– at the end of year of occurrence | -1,854,864 | -2,738,258 | -3,624,457 | -4,134,287 | -5,102,050 | -9,169,890 | -379,619,257 | -581,715,006 | -670,035,934 | -443,706,492 | |
– 1 year after year of occurrence | -2,002,500 | -3,031,166 | -4,282,442 | -5,684,507 | -6,747,208 | -53,167,933 | -364,008,739 | -556,691,379 | -632,702,582 | 0 | |
– 2 years after year of occurrence | -1,978,188 | -2,926,974 | -4,047,463 | -5,452,307 | -25,082,873 | -43,185,055 | -357,524,089 | -544,981,382 | 0 | 0 | |
– 3 years after year of occurrence | -1,902,410 | -2,825,846 | -3,907,803 | -14,355,292 | -20,529,617 | -39,074,621 | -358,284,220 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -1,869,136 | -2,767,715 | -18,090,820 | -12,968,235 | -21,259,929 | -40,984,475 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -1,838,694 | -104,785,827 | -17,323,415 | -6,809,784 | -17,492,566 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | 243,576 | -97,354,570 | -21,034,244 | -6,702,188 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -321,480 | -90,606,336 | -19,098,349 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -695,651 | -88,526,742 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | 650,721 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cumulative payments up to the balance sheet date | -1,039,766 | -8,930,116 | -7,599,135 | -2,909,704 | -5,756,830 | -26,943,791 | -347,949,937 | -523,842,819 | -590,122,186 | -293,400,160 | |
Net liabilities | 1,690,487 | -79,596,626 | -11,499,214 | -3,792,484 | -11,735,736 | -14,040,684 | -10,334,283 | -21,138,562 | -42,580,396 | -150,306,331 | -343,333,830 |
Net liabilities of previous years | 8,612,379 | ||||||||||
Discounting effect | 49,426,628 | ||||||||||
Net liabilities for incurred claims included in the financial statements | -285,294,823 |
Life claims development of Zavarovalnica Triglav
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of net claims | |||||||||||
– at the end of year of occurrence | -14,386,984 | -21,647,714 | -52,592,395 | -33,459,027 | -39,599,423 | -49,550,045 | -87,637,065 | -159,827,719 | -179,972,299 | -193,759,479 | |
– 1 year after year of occurrence | -13,678,534 | -20,232,266 | -51,586,961 | -32,203,398 | -37,415,710 | -76,465,375 | -85,847,609 | -157,805,928 | -177,267,290 | 0 | |
– 2 years after year of occurrence | -13,599,658 | -20,022,748 | -51,163,571 | -31,737,178 | -70,858,274 | -75,807,034 | -85,243,562 | -157,061,025 | 0 | 0 | |
– 3 years after year of occurrence | -13,615,224 | -19,859,824 | -51,096,161 | -64,199,193 | -70,646,080 | -75,858,750 | -84,832,719 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -13,608,409 | -19,880,634 | -96,446,139 | -64,211,232 | -70,830,437 | -75,907,965 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -13,637,568 | -37,427,115 | -96,397,582 | -64,392,599 | -70,847,505 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | -30,139,837 | -37,425,558 | -96,460,959 | -64,388,428 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -30,125,684 | -37,481,286 | -96,448,407 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -30,169,037 | -37,562,040 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | -30,189,615 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cumulative payments up to the balance sheet date | -30,031,610 | -37,187,054 | -96,127,436 | -64,044,968 | -70,344,029 | -75,181,847 | -83,995,611 | -155,056,200 | -172,675,437 | -170,691,435 | |
Net liabilities | -158,005 | -374,986 | -320,971 | -343,460 | -503,475 | -726,119 | -837,108 | -2,004,825 | -4,591,853 | -23,068,044 | -32,928,846 |
Net liabilities of previous years | -335,416 | ||||||||||
Discounting effect | 628,479 | ||||||||||
Net liabilities for incurred claims included in the financial statements | -32,635,783 |
369
in EUR | |||||||||||
Year of occurence | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TOTAL | |
Cumulative estimate of net claims | |||||||||||
– at the end of year of occurrence | -14,386,984 | -21,647,714 | -52,592,395 | -33,459,027 | -39,599,423 | -49,550,045 | -87,637,065 | -159,827,719 | -179,972,299 | -193,487,579 | |
– 1 year after year of occurrence | -13,678,534 | -20,232,266 | -51,586,961 | -32,203,398 | -37,415,710 | -76,465,375 | -85,847,609 | -157,805,928 | -177,267,290 | 0 | |
– 2 years after year of occurrence | -13,599,658 | -20,022,748 | -51,163,571 | -31,737,178 | -70,858,274 | -75,807,034 | -85,243,562 | -157,061,025 | 0 | 0 | |
– 3 years after year of occurrence | -13,615,224 | -19,859,824 | -51,096,161 | -64,199,193 | -70,646,080 | -75,858,750 | -84,832,719 | 0 | 0 | 0 | |
– 4 years after year of occurrence | -13,608,409 | -19,880,634 | -96,446,139 | -64,211,232 | -70,830,437 | -75,907,965 | 0 | 0 | 0 | 0 | |
– 5 years after year of occurrence | -13,637,568 | -37,427,115 | -96,397,582 | -64,392,599 | -70,847,505 | 0 | 0 | 0 | 0 | 0 | |
– 6 years after year of occurrence | -30,139,837 | -37,425,558 | -96,460,959 | -64,388,428 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 7 years after year of occurrence | -30,125,684 | -37,481,286 | -96,448,407 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 8 years after year of occurrence | -30,169,037 | -37,562,040 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
– 9 years after year of occurrence | -30,189,615 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cumulative payments up to the balance sheet date | -30,031,610 | -37,187,054 | -96,127,436 | -64,044,968 | -70,344,029 | -75,181,847 | -83,995,611 | -155,056,200 | -172,675,437 | -170,542,320 | |
Net liabilities | -158,005 | -374,986 | -320,971 | -343,460 | -503,475 | -726,119 | -837,108 | -2,004,825 | -4,591,853 | -22,945,259 | -32,806,061 |
Net liabilities of previous years | -335,416 | ||||||||||
Discounting effect | 626,043 | ||||||||||
Net liabilities for incurred claims included in the financial statements | -32,515,433 |
370
Reinsurance business
3.2.1
Assumptions and accounting estimates used in the valuation of 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 | |||||||
| 31 Dec 2024 | 31 Dec 2023 | ||||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | LIFE - Premium allocation approach (PAA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - Premium allocation approach (PAA) | TOTAL | |
Reinsurance contract assets | 289,254,923 | 0 | 355,332 | 289,610,255 | 327,345,399 | 387,756 | 327,733,155 |
Assets for remaining coverage | 21,901,039 | 0 | -477,526 | 21,423,513 | 8,580,960 | 2,213 | 8,583,173 |
Assets for incurred claims | 267,353,884 | 0 | 832,858 | 268,186,742 | 318,764,439 | 385,543 | 319,149,982 |
Reinsurance contract liabilities | 2,146,102 | 8,336 | 0 | 2,154,438 | 6,457,354 | 3,246 | 6,460,600 |
Liabilities for remaining coverage | 2,955,705 | 128,686 | 0 | 3,084,391 | 6,214,256 | 4,712 | 6,218,968 |
Liabilities for incurred claims | -809,603 | -120,350 | 0 | -929,953 | 243,098 | -1,466 | 241,632 |
Total net reinsurance contract assets | 287,108,821 | -8,336 | 355,332 | 287,455,817 | 320,888,045 | 384,510 | 321,272,555 |
Net assets for remaining coverage | 18,945,334 | -128,686 | -477,526 | 18,339,122 | 2,366,704 | -2,499 | 2,364,205 |
Net assets for incurred claims | 268,163,487 | 120,350 | 832,858 | 269,116,695 | 318,521,341 | 387,009 | 318,908,350 |
Categories of reinsurance contract assets and liabilities of the Triglav Group
in EUR | |||||||
| 31 Dec 2024 | 31 Dec 2023 | ||||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | LIFE - Premium allocation approach (PAA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - Premium allocation approach (PAA) | TOTAL | |
Reinsurance contract assets | 289,254,923 | 0 | 355,332 | 289,610,255 | 327,345,399 | 387,756 | 327,733,155 |
Expected present value of future cash flows | 272,571,833 | 0 | 308,231 | 272,880,064 | 306,892,445 | 365,983 | 307,258,428 |
Risk adjustment for non-financial risk | 16,683,090 | 0 | 47,101 | 16,730,191 | 20,452,954 | 21,773 | 20,474,727 |
Contractual service margin | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | 2,146,102 | 8,336 | 0 | 2,154,438 | 6,457,354 | 3,246 | 6,460,600 |
Expected present value of future cash flows | 2,177,325 | 3,597,033 | 0 | 5,774,358 | 6,494,471 | 3,329 | 6,497,800 |
Risk adjustment for non-financial risk | -31,223 | -840,610 | 0 | -871,833 | -37,117 | -83 | -37,200 |
Contractual service margin | 0 | -2,748,087 | 0 | -2,748,087 | 0 | 0 | 0 |
Total net reinsurance contract assets | 287,108,821 | -8,336 | 355,332 | 287,455,817 | 320,888,045 | -384,510 | 320,503,535 |
Net assets from present value of future cash flows | 270,394,508 | -3,597,033 | 308,231 | 267,105,706 | 300,397,974 | -362,654 | 300,035,320 |
Net assets from risk adjustment for non-financial risk | 16,714,313 | 840,610 | 47,101 | 17,602,024 | 20,490,071 | -21,856 | 20,468,215 |
Net assets from contractual service margin | 0 | 2,748,087 | 0 | 2,748,087 | 0 | 0 | 0 |
371
Reinsurance contract assets and liabilities of Zavarovalnica Triglav
in EUR | |||||
| 31 Dec 2024 | 31 Dec 2023 | ||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | TOTAL | |
Reinsurance contract assets | 249,461,236 | 0 | 249,461,236 | 306,935,188 | 306,936,690 |
Assets for remaining coverage | 33,634,736 | 0 | 33,634,736 | 25,911,984 | 25,913,486 |
Assets for incurred claims | 215,826,500 | 0 | 215,826,500 | 281,023,204 | 281,023,204 |
Reinsurance contract liabilities | 421,288 | 8,336 | 429,625 | 0 | 0 |
Liabilities for remaining coverage | 421,288 | 128,686 | 549,974 | 0 | 0 |
Liabilities for incurred claims | 0 | -120,350 | -120,350 | 0 | 0 |
Total net reinsurance contract assets | 249,039,947 | -8,336 | 249,031,611 | 306,935,188 | 306,936,690 |
Net assets for remaining coverage | 33,213,448 | -128,686 | 33,084,761 | 25,911,984 | 25,913,486 |
Net assets for incurred claims | 215,826,500 | 120,350 | 215,946,850 | 281,023,204 | 281,023,204 |
Categories of reinsurance contract assets and liabilities of Zavarovalnica Triglav
in EUR | |||||
| 31 Dec 2024 | 31 Dec 2023 | ||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | TOTAL | |
Reinsurance contract assets | 249.461.236 | 0 | 249.461.236 | 306.935.188 | 306.936.690 |
Expected present value of future cash flows | 236.366.075 | 0 | 236.366.075 | 288.812.910 | 288.814.413 |
Risk adjustment for non-financial risk | 13.095.160 | 0 | 13.095.160 | 18.122.278 | 18.122.278 |
Contractual service margin | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | 421.288 | 8.336 | 429.625 | 0 | 0 |
Expected present value of future cash flows | 421.288 | 3.597.033 | 4.018.321 | 0 | 0 |
Risk adjustment for non-financial risk | 0 | -840.609 | -840.609 | 0 | 0 |
Contractual service margin | 0 | -2.748.087 | -2.748.087 | 0 | 0 |
Total net reinsurance contract assets | 249.039.947 | -8.336 | 249.031.611 | -306.935.188 | -306.936.690 |
Net assets from present value of future cash flows | 235.944.787 | -3.597.033 | 232.347.754 | -288.812.910 | -288.814.413 |
Net assets from risk adjustment for non-financial risk | 13.095.160 | 840.609 | 13.935.770 | -18.122.278 | -18.122.278 |
Net assets from contractual service margin | 0 | 2.748.087 | 2.748.087 | 0 | 0 |
372
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 | |||||||
| 2024 | 2023 | ||||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | LIFE - Premium allocation approach (PAA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - Premium allocation approach (PAA) | TOTAL | |
Reinsurance income recognised in profit or los | 122,792,502 | 268,751 | 1,910,332 | 124,971,585 | 274,740,287 | 1,279,817 | 276,020,104 |
Reinsurers' shares in claims and other insurance service expenses | 113,184,670 | 268,751 | 1,752,349 | 115,205,770 | 253,508,820 | 1,086,198 | 254,595,018 |
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims | 9,562,034 | 0 | 157,983 | 9,720,017 | 21,228,667 | 193,618 | 21,422,285 |
Changes in reinsurers' shares that relate to underlying onerous contracts | 45,798 | 0 | 0 | 45,798 | 2,802 | 0 | 2,802 |
Reinsurance service expenses recognised in profit or loss | 263,995,431 | -374,513 | -1,532,563 | 265,902,507 | 244,752,915 | 339,376 | 244,413,539 |
Expected reinsurers' share in insurance income | 263,995,431 | -374,513 | -1,532,563 | 265,902,507 | 244,752,913 | 339,376 | 244,413,537 |
Net income/expenses from reinsurance contracts recognised in profit or loss | 141,202,929 | -105,762 | 377,769 | 140,930,922 | 29,987,372 | 1,619,193 | 31,606,565 |
Finance income/expenses from reinsurance contracts | 8,513,279 | 118 | 4,723 | 8,518,120 | 3,648,410 | 8,761 | 3,657,171 |
Financial effects from non-performance risk | 718,777 | 793 | -135 | 719,435 | -606,316 | -968 | -607,284 |
Interest accreted | 5,838,674 | 428 | 4,376 | 5,843,478 | 664,423 | 8,378 | 672,801 |
Other – effect on other comprehensive income before tax | 1,955,828 | -1,103 | 482 | 1,955,207 | 3,590,303 | 1,351 | 3,591,654 |
Total | 132,689,650 | -105,644 | 382,492 | 132,412,802 | 33,635,782 | 1,627,954 | 35,263,736 |
in EUR | |||||||
| 2024 | 2023 | ||||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | LIFE - Premium allocation approach (PAA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - Premium allocation approach (PAA) | TOTAL | |
Finance income/expenses recognised in profit or loss | 6,557,455 | 1,221 | 4,241 | 6,562,917 | 58,108 | 7,410 | 65,518 |
Finance income/expenses recognised in other comprehensive income | 1,955,828 | -1,103 | 482 | 1,955,207 | 3,590,307 | 1,351 | 3,591,658 |
Total finance income/expenses from reinsurance contracts | 8,513,283 | 118 | 4,723 | 8,518,124 | 3,648,415 | 8,761 | 3,657,176 |
373
Reinsurance income and reinsurance service expenses of Zavarovalnica Triglav
in EUR | |||||
| 2024 | 2023 | ||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | TOTAL | |
Reinsurance income recognised in profit or los | 92,801,424 | 268,751 | 93,070,175 | 227,396,192 | 227,396,192 |
Reinsurers' shares in claims and other insurance service expenses | 74,790,585 | 268,751 | 75,059,336 | 221,041,486 | 221,041,486 |
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims | 15,150,025 | 0 | 15,150,025 | 5,931,614 | 5,931,614 |
Changes in reinsurers' shares that relate to underlying onerous contracts | 2,860,814 | 0 | 2,860,814 | 423,092 | 423,092 |
Reinsurance service expenses recognised in profit or loss | -223,352,761 | -374,513 | -223,727,274 | -187,866,733 | -187,866,733 |
Expected reinsurers' share in insurance income | -223,352,761 | -374,513 | -223,727,274 | -187,866,733 | -187,866,733 |
Net income/expenses from reinsurance contracts recognised in profit or loss | -130,551,336 | -105,762 | -130,657,099 | 39,529,459 | 39,529,459 |
Finance income/expenses from reinsurance contracts | 7,160,708 | 118 | 7,160,826 | 4,228,706 | 4,228,706 |
Financial effects from non-performance risk | 736,148 | 793 | 736,941 | -410,334 | -410,334 |
Interest accreted | 4,996,046 | 428 | 4,996,474 | 547,850 | 547,850 |
Other (effect on other comprehensive income before tax) | 1,428,514 | -1,103 | 1,427,411 | 4,091,190 | 4,091,190 |
Total | -123,390,628 | -105,645 | -123,496,273 | 43,758,165 | 43,758,165 |
in EUR | |||||
| 2024 | 2023 | ||||
NON LIFE and HEALTH - Premium allocation approach (PAA) | LIFE - General model (BBA) | TOTAL | NON LIFE and HEALTH - Premium allocation approach (PAA) | TOTAL | |
Finance income/expenses recognised in profit or loss | 5,732,195 | 1,221 | 5,733,415 | 137,516 | 137,516 |
Finance income/expenses recognised in other comprehensive income | 1,428,514 | -1,103 | 1,427,411 | 4,091,190 | 4,091,190 |
Total finance income/expenses from reinsurance contracts | 7,160,708 | 118 | 7,160,826 | 4,228,706 | 4,228,706 |
374
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
2024 | in EUR | |||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | LIFE | |||
Remaining coverage | ||||
Excluding the loss component | Loss component | Incurred claims | Total | |
Opening balance of net reinsurance contract assets/liabilitie | 0 | 0 | 0 | 0 |
Reinsurance contract assets | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 |
Reinsurance income | 0 | 0 | 268,750 | 268,750 |
Reinsurers' shares in claims | 0 | 0 | 268,750 | 268,750 |
Reinsurance service expenses | -374,513 | 0 | 0 | -374,513 |
Finance income/expenses from reinsurance contracts | -1,389 | 0 | 714 | -675 |
Financial effects from non-performance risk | 793 | 0 | 0 | 793 |
Cash flows | 246,424 | 0 | -149,115 | 97,309 |
Premiums paid | 246,424 | 0 | 0 | 246,424 |
Reinsurance service expenses recovered for insurance contracts issued | 0 | 0 | -149,115 | -149,115 |
Closing balance of net reinsurance contract assets/liabilities | -128,686 | 0 | 120,350 | -8,336 |
Reinsurance contract assets | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | -128,686 | 0 | 120,350 | -8,336 |
In 2023, the Group did not have any reinsurance contracts valued using the general model.
375
2024
in EUR | |||||||||||
CONTRACTS MEASURED UNDER THE PREMIUM ALLOCATION APPROACH (PAA) | NON-LIFE and HEALTH | LIFE | |||||||||
Remaining coverage | Incurred claims | 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 | Excluding the loss component | Loss component | Estimates of the present value of the future cash flows | Risk adjustment for non- financial risk | Total | TOTAL | |
Opening balance of net reinsurance contract assets/liabilitie | 2,362,726 | 3,978 | 298,015,992 | 20,490,070 | 320,872,766 | -2,499 | 0 | 365,153 | 21,856 | 384,510 | 321,257,276 |
Reinsurance contract assets | 8,048,029 | 35,842 | 297,120,737 | 20,452,953 | 325,657,561 | 2,213 | 0 | 363,770 | 21,773 | 387,756 | 326,045,317 |
Reinsurance contract liabilities | -5,685,303 | -31,864 | 895,255 | 37,117 | -4,784,795 | -4,712 | 0 | 1,383 | 83 | -3,246 | -4,788,041 |
Reinsurance income | 0 | 45,798 | 127,046,163 | -4,299,453 | 122,792,508 | 0 | 0 | 1,885,362 | 24,970 | 1,910,332 | 124,702,840 |
Reinsurance income | 0 | 0 | 108,014,266 | 5,170,405 | 113,184,671 | 0 | 0 | 1,706,645 | 45,704 | 1,752,349 | 114,937,020 |
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims | 0 | 0 | 19,031,897 | -9,469,858 | 9,562,039 | 0 | 0 | 178,717 | -20,734 | 157,983 | 9,720,022 |
Changes in reinsurers' shares that relate to underlying onerous contracts | 0 | 45,798 | 0 | 0 | 45,798 | 0 | 0 | 0 | 0 | 0 | 45,798 |
Reinsurance service expenses | -263,995,433 | 0 | 0 | 0 | -263,995,433 | -1,532,563 | 0 | 0 | 0 | -1,532,563 | -265,527,996 |
Reinsurance investment components | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Finance income/expenses from reinsurance contracts | 0 | -50 | 7,271,343 | 523,023 | 7,794,316 | 0 | 0 | 4,583 | 275 | 4,858 | 7,799,174 |
Financial effects from non-performance risk | 0 | 0 | 718,777 | 0 | 718,777 | 0 | 0 | -135 | 0 | -135 | 718,642 |
Cash flows | 280,539,315 | 0 | -181,660,474 | 0 | 98,878,841 | 1,057,537 | 0 | -1,469,205 | 0 | -411,668 | 98,467,173 |
Premiums paid | 280,539,315 | 0 | 0 | 0 | 280,539,315 | 1,057,537 | 0 | 0 | 0 | 1,057,537 | 281,596,852 |
Reinsurance service expenses recovered for insurance contracts issued | 0 | 0 | -181,660,474 | 0 | -181,660,474 | 0 | 0 | -1,469,205 | 0 | -1,469,205 | -183,129,679 |
Effect of exchange rate differences | -10,998 | 0 | 57,373 | 673 | 47,046 | 0 | 0 | 0 | 0 | 0 | 47,044 |
Closing balance of net reinsurance contract assets/liabilities | 18,895,610 | 49,724 | 251,449,174 | 16,714,313 | 287,108,821 | -477,526 | 0 | 785,757 | 47,101 | 355,332 | 287,464,153 |
Reinsurance contract assets | 21,851,315 | 49,724 | 250,670,794 | 16,683,090 | 289,254,923 | -477,526 | 0 | 785,757 | 47,101 | 355,332 | 289,610,255 |
Reinsurance contract liabilities | -2,955,705 | 0 | 778,380 | 31,223 | -2,146,102 | 0 | 0 | 0 | 0 | 0 | -2,146,102 |
376
2023 | in EUR | ||||||||||
CONTRACTS MEASURED UNDER THE PREMIUM ALLOCATION APPROACH (PAA) | NON-LIFE and HEALTH | LIFE | |||||||||
Remaining coverage | Incurred claims | 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 | Excluding the loss component | Loss component | Estimates of the present value of the future cash flows | Risk adjustment for non- financial risk | Total | TOTAL | |
Opening balance of net reinsurance contract assets/liabilitie | 1,882,869 | 1,172 | 154,897,985 | 15,196,460 | 171,978,486 | 7,579,711 | 0 | 293,345 | 17,494 | 7,890,550 | 179,869,036 |
Reinsurance contract assets | 18,052,787 | 1,168 | 149,247,690 | 14,141,903 | 181,443,548 | 7,579,711 | 0 | 293,345 | 17,494 | 7,890,550 | 189,334,098 |
Reinsurance contract liabilities | -16,169,918 | 0 | 5,650,295 | 1,054,557 | -9,465,062 | 0 | 0 | 0 | 0 | 0 | -9,465,062 |
Reinsurance income | 0 | 34,663 | 269,902,197 | 4,835,288 | 274,772,148 | 0 | 0 | 1,276,003 | 3,814 | 1,279,817 | 276,051,965 |
Reinsurance income | 0 | 0 | 242,806,688 | 10,702,131 | 253,508,819 | 0 | 0 | 1,065,930 | 20,268 | 1,086,198 | 254,595,017 |
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims | 0 | 0 | 27,095,509 | -5,866,843 | 21,228,666 | 0 | 0 | 210,073 | -16,454 | 193,619 | 21,422,285 |
Changes in reinsurers' shares that relate to underlying onerous contracts | 0 | 34,663 | 0 | 0 | 34,663 | 0 | 0 | 0 | 0 | 0 | 34,663 |
Reinsurance service expenses | -244,752,915 | 0 | 0 | 0 | -244,752,915 | 339,376 | 0 | 0 | 0 | 339,376 | -244,413,539 |
Reinsurance investment components | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Finance income/expenses from reinsurance contracts | 0 | 0 | 3,795,834 | 458,894 | 4,254,731 | 0 | 0 | 9,179 | 549 | 9,728 | 4,264,459 |
Financial effects from non-performance risk | 0 | 0 | -606,321 | 0 | -606,321 | 0 | 0 | -968 | 0 | -968 | -607,289 |
Cash flows | 245,230,380 | 0 | -129,905,029 | 0 | 115,325,351 | -7,921,586 | 0 | -1,212,435 | 0 | -9,134,021 | 106,191,330 |
Premiums paid | 245,230,380 | 0 | 0 | 0 | 245,230,380 | -7,921,586 | 0 | 0 | 0 | -7,921,586 | 237,308,794 |
Reinsurance service expenses recovered for insurance contracts issued | 0 | 0 | -129,905,029 | 0 | -129,905,029 | 0 | 0 | -1,212,435 | 0 | -1,212,435 | -131,117,464 |
Effect of exchange rate differences | 2,392 | 0 | -53,396 | -571 | -51,574 | 0 | 0 | 0 | 0 | 0 | -51,576 |
Closing balance of net reinsurance contract assets/liabilities | 2,362,726 | 35,839 | 298,031,270 | 20,490,071 | 320,919,906 | -2,499 | 0 | 365,153 | 21,856 | 384,510 | 321,304,416 |
Reinsurance contract assets | 8,545,118 | 35,842 | 298,210,415 | 20,554,024 | 327,345,399 | 2,213 | 0 | 363,770 | 21,773 | 387,756 | 327,733,155 |
Reinsurance contract liabilities | -6,182,392 | 0 | -179,145 | -63,953 | -6,425,493 | -4,712 | 0 | 1,383 | 83 | -3,246 | -6,428,739 |
377
Assets and liabilities for remaining coverage and assets and liabilities for incurred claims of
Zavarovalnica Triglav
2024 | in EUR | |||
LIFE INSURANCE CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | ||||
Remaining coverage | ||||
Excluding the loss component | Loss component | Incurred claims | Total | |
Opening balance of net reinsurance contract assets/liabilitie | 0 | 0 | 0 | 0 |
Reinsurance contract assets | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 |
Reinsurance income | 0 | 0 | 268,751 | 268,751 |
Reinsurers' shares in claims | 0 | 0 | 268,751 | 268,751 |
Reinsurance service expenses | -374,513 | 0 | 0 | -374,513 |
Finance income/expenses from reinsurance contracts | -1,389 | 0 | 714 | -675 |
Financial effects from non-performance risk | 793 | 0 | 0 | 793 |
Cash flows | 246,424 | 0 | -149,115 | 97,308 |
Premiums paid | 246,424 | 0 | 0 | 246,424 |
Reinsurance service expenses recovered for insurance contracts issued | 0 | 0 | -149,115 | -149,115 |
Closing balance of net reinsurance contract assets/liabilities | -128,686 | 0 | 120,350 | -8,336 |
Reinsurance contract assets | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | -128,686 | 0 | 120,350 | -8,336 |
In 2023, the Group did not have any reinsurance contracts valued using the general model.
378
in EUR | ||||||||||
NON-LIFE AND HEALTH INSURANCE CONTRACTS MEASURED UNDER THE PREMIUM ALLOCATION APPROACH (PAA) | 2024 | 2023 | ||||||||
Remaining coverage | Incurred claims | 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 | 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/liabilitie | 25,201,695 | 711,791 | 262,900,927 | 18,122,278 | 306,936,690 | 9,347,434 | 267,378 | 139,479,200 | 15,362,099 | 164,456,111 |
Reinsurance contract assets | 25,201,695 | 711,791 | 262,900,927 | 18,122,278 | 306,936,690 | 21,893,778 | 267,328 | 132,368,943 | 13,978,719 | 168,508,768 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 | 0 | -12,546,344 | 50 | 7,110,257 | 1,383,380 | -4,052,657 |
Reinsurance income | 0 | 2,860,814 | 95,480,066 | -5,539,455 | 92,801,424 | 0 | 423,092 | 224,799,116 | 2,173,984 | 227,396,192 |
Reinsurers' shares in claims | 0 | 0 | 71,129,297 | 3,661,288 | 74,790,585 | 0 | 0 | 210,423,792 | 10,617,695 | 221,041,486 |
Changes in reinsurers' shares that relate to changes in liabilities for incurred claims | 0 | 0 | 24,350,769 | -9,200,743 | 15,150,025 | 0 | 0 | 14,375,325 | -8,443,711 | 5,931,614 |
Changes in reinsurers' shares that relate to underlying onerous contracts | 0 | 2,860,814 | 0 | 0 | 2,860,814 | 0 | 423,092 | 0 | 0 | 423,092 |
Reinsurance service expenses | -223,352,761 | 0 | 0 | 0 | -223,352,761 | -187,866,733 | 0 | 0 | 0 | -187,866,733 |
Reinsurance investment components | -3,290,011 | 0 | 3,290,011 | 0 | 0 | -3,438,489 | 0 | 3,438,489 | 0 | 0 |
Finance income/expenses from reinsurance contracts | 0 | 12,164 | 5,900,058 | 512,338 | 6,424,560 | 0 | 21,321 | 4,031,524 | 586,194 | 4,639,040 |
Financial effects from non-performance risk | 0 | 0 | 736,148 | 0 | 736,148 | 0 | 0 | -410,334 | 0 | -410,334 |
Cash flows | 231,069,755 | 0 | -165,575,870 | 0 | 65,493,885 | 207,157,981 | 0 | -108,437,069 | 0 | 98,720,911 |
Premiums paid | 231,069,755 | 0 | 0 | 0 | 231,069,755 | 207,157,981 | 0 | 0 | 0 | 207,157,981 |
Reinsurance service expenses recovered for insurance contracts issued | 0 | 0 | -165,575,870 | 0 | -165,575,870 | 0 | 0 | -108,437,069 | 0 | -108,437,069 |
Closing balance of net reinsurance contract assets/liabilities | 29,628,679 | 3,584,769 | 202,731,339 | 13,095,160 | 249,039,947 | 25,200,193 | 711,791 | 262,900,927 | 18,122,278 | 306,935,188 |
Reinsurance contract assets | 30,049,976 | 3,584,760 | 202,731,339 | 13,095,160 | 249,461,236 | 25,200,193 | 711,791 | 262,900,927 | 18,122,278 | 306,935,188 |
Reinsurance contract liabilities | -421,297 | 0 | 0 | 0 | -421,288 | 0 | 0 | 0 | 0 | 0 |
379
3.2.5
The present value of expected cash flows, risk adjustment for non-financial risk and contractual service margin from reinsurance contracts
Present value of expected cash flows, risk adjustment and contractual service margin from reinsurance contracts of the Triglav Group
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | LIFE | ||||||
| Contractual service margin | |||||||
| Expected present value of 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 reinsurance contract assets and liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Changes | -3,670,467 | 834,704 | 0 | 0 | 2,729,999 | 2,729,999 | -105,764 |
Changes that relate to future service | -3,672,198 | 872,652 | 0 | 0 | 2,799,545 | 2,799,545 | 0 |
Changes in estimates that adjust the CSM | -32,969 | -87,018 | 0 | 0 | 119,986 | 119,986 | 0 |
Effects of contracts for which initial recognition was carried out in the period | -3,639,229 | 959,670 | 0 | 0 | 2,679,559 | 2,679,559 | 0 |
Changes that relate to current service | 1,731 | -37,948 | 0 | 0 | -69,546 | -69,546 | -105,763 |
CSM recognised in profit or loss to reflect the transfer of services | 0 | 0 | 0 | 0 | -69,546 | -69,546 | -69,546 |
Change in risk adjustment for non-financial risk | 0 | -37,948 | 0 | 0 | 0 | 0 | -37,948 |
Experience adjustment | 1,731 | 0 | 0 | 0 | 0 | 0 | 1,731 |
Changes that relate to past service | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance finance income and expenses | -24,667 | 5,905 | 0 | 0 | 18,087 | 18,087 | -675 |
Financial effects of default risk | 793 | 0 | 0 | 0 | 0 | 0 | 793 |
Cash flows | 97,309 | 0 | 0 | 0 | 0 | 0 | 97,309 |
Premium paid | 246,424 | 0 | 0 | 0 | 0 | 0 | 246,424 |
Reinsurance reimbursement for insurance contracts issued | -149,115 | 0 | 0 | 0 | 0 | 0 | -149,115 |
Closing balance of net reinsurance contract assets and liabilities | -3,597,033 | 840,610 | 0 | 0 | 2,748,087 | 2,748,087 | -8,336 |
Reinsurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | -3,597,033 | 840,610 | 0 | 0 | 2,748,087 | 2,748,087 | -8,336 |
In 2023, the Group did not have any reinsurance contracts valued using the general model.
380
Present value of expected cash flows, risk adjustment and contractual service margin from reinsurance contracts of Zavarovalnica Triglav
2024 | in EUR | ||||||
CONTRACTS MEASURED UNDER THE GENERAL MODEL (BBA) | LIFE | ||||||
| Contractual service margin | |||||||
| Expected present value of 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 reinsurance contract assets and liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Changes | -3,670,466 | 834,704 | 0 | 0 | 2,730,000 | 2,730,000 | -105,762 |
Changes that relate to future service | -3,672,198 | 872,652 | 0 | 0 | 2,799,546 | 2,799,546 | 0 |
Changes in estimates that adjust the CSM | -32,969 | -87,018 | 0 | 0 | 119,986 | 119,986 | 0 |
Effects of contracts for which initial recognition was carried out in the period | -3,639,229 | 959,670 | 0 | 0 | 2,679,559 | 2,679,559 | 0 |
Changes that relate to current service | 1,731 | -37,948 | 0 | 0 | -69,546 | -69,546 | -105,762 |
CSM recognised in profit or loss to reflect the transfer of services | 0 | 0 | 0 | 0 | -69,546 | -69,546 | -69,546 |
Change in risk adjustment for non-financial risk | 0 | -37,948 | 0 | 0 | 0 | 0 | -37,948 |
Experience adjustment | 1,731 | 0 | 0 | 0 | 0 | 0 | 1,731 |
Changes that relate to past service | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance finance income and expenses | -24,667 | 5,905 | 0 | 0 | 18,087 | 18,087 | -675 |
Financial effects of default risk | 793 | 0 | 0 | 0 | 0 | 0 | 793 |
Cash flows | 97,308 | 0 | 0 | 0 | 0 | 0 | 97,308 |
Premium paid | 246,424 | 0 | 0 | 0 | 0 | 0 | 246,424 |
Reinsurance reimbursement for insurance contracts issued | -149,115 | 0 | 0 | 0 | 0 | 0 | -149,115 |
Closing balance of net reinsurance contract assets and liabilities | -3,597,033 | 840,609 | 0 | 0 | 2,748,087 | 2,748,087 | -8,336 |
Reinsurance contract assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Reinsurance contract liabilities | -3,597,033 | 840,609 | 0 | 0 | 2,748,087 | 2,748,087 | -8,336 |
In 2023, the Group did not have any reinsurance contracts valued using the general model.
381
3.2.6
The effects of reinsurance 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 reinsurance contracts for which initial recognition was carried
out in 2024 and which are not measured according to the premium allocation approach
2024 | in EUR | |
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD | LIFE | |
General model (BBA) | ||
Profitable contracts issued | Onerous contracts issued | |
Present value of expected cash outflows | -11,509,961 | 0 |
Incurred claims and other reinsurance service expenses | 11,509,961 | 0 |
Present value of expected cash inflows | -15,149,190 | 0 |
Risk adjustment for non-financial risk | 959,670 | 0 |
Contractual service margin | 2,679,559 | 0 |
Total upon initial recognition | 0 | 0 |
The effects of Zavarovalnica Triglav's reinsurance contracts for which initial recognition was carried
out in 2024 and which are not measured according to the premium allocation approach
2024 | in EUR | |
EFFECTS OF CONTRACTS RECOGNISED IN THE PERIOD | LIFE | |
General model (BBA) | ||
Profitable contracts issued | Onerous contracts issued | |
Present value of expected cash outflows | -11,509,961 | 0 |
Incurred claims and other reinsurance service expenses | 11,509,961 | 0 |
Present value of expected cash inflows | -15,149,190 | 0 |
Risk adjustment for non-financial risk | 959,670 | 0 |
Contractual service margin | 2,679,559 | 0 |
Total upon initial recognition | 0 | 0 |
382
3.2.7
Expected release of contractual service margin for reinsurance contracts
Expected release of contractual service margin for the Triglav Group's reinsurance contracts
31 Dec 2024 | in EUR | |||||||
CONTRACTUAL SERVICE MARGIN | ||||||||
<1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | >10 years | TOTAL | |
Life insurance | -273,933 | -247,192 | -224,650 | -205,106 | -188,193 | -722,841 | -886,172 | -2,748,087 |
General model (BBA) | -273,933 | -247,192 | -224,650 | -205,106 | -188,193 | -722,841 | -886,172 | -2,748,087 |
TOTAL | -273,933 | -247,192 | -224,650 | -205,106 | -188,193 | -722,841 | -886,172 | -2,748,087 |
Expected release of contractual service margin for Zavarovalnica Triglav's reinsurance contracts
31 Dec 2024 | in EUR | |||||||
CONTRACTUAL SERVICE MARGIN | ||||||||
<1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | >10 years | TOTAL | |
Life insurance | -273,933 | -247,192 | -224,650 | -205,106 | -188,193 | -722,841 | -886,172 | -2,748,087 |
General model (BBA) | -273,933 | -247,192 | -224,650 | -205,106 | -188,193 | -722,841 | -886,172 | -2,748,087 |
TOTAL | -273,933 | -247,192 | -224,650 | -205,106 | -188,193 | -722,841 | -886,172 | -2,748,087 |
383
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 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Pozavarovalnica Triglav Re, d.d. | 100 | 100 | 9,750,752 | 9,750,752 |
Triglav, Zdravstvena zavarovalnica, d.d. | 100 | 100 | 2,500,000 | 2,500,000 |
Triglav INT, d.o.o. | 100 | 100 | 100,270,730 | 100,270,730 |
Triglav, pokojninska družba, d.d. | 100 | 100 | 52,070,000 | 52,070,000 |
Triglav, Upravljanje nepremičnin, d.o.o. | 100 | 100 | 24,493,300 | 24,493,300 |
Triglav Skladi, d.o.o. | 100 | 100 | 2,076,723 | 2,076,723 |
Triglav Avtoservis, d.o.o. | 100 | 100 | 194,217 | 194,217 |
Triglav Svetovanje, d.o.o. | 100 | 100 | 279,736 | 279,736 |
Zavod Vse bo v redu | 100 | 100 | 100,000 | 100,000 |
Triglav penzisko društvo, a.d., Skopje | 100 | 100 | 4,889,000 | 3,889,000 |
TOTAL | 196,624,458 | 195,624,458 | ||
Triglav Group's interests in associates and joint ventures
PARTICIPATING INTEREST, SHARE OF VOTING RIGHTS (%) | CARRYING AMOUNT (in EUR) | |||
COMPANY NAME | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Nama, d.d. | 0.00 | 39.15 | 0 | 4,648,981 |
KATERA Beteiligungs-Verwaltungsgesellschaft P11, mbH | 24.90 | 0.00 | 20,394,242 | 0 |
Triglavko, d.o.o. | 38.47 | 38.47 | 4,519 | 18,509 |
TRIGAL, upravljanje naložb in svetovanje, d.o.o. | 49.90 | 49.90 | 11,319,552 | 10,925,240 |
Diagnostični center Bled d.o.o. | 40.10 | 40.10 | 23,341,075 | 21,560,001 |
Alifenet, d.o.o. | 23.58 | 23.58 | 0 | 66,110 |
Društvo za upravljanje EDPF, a.d. | 34.00 | 34.00 | 561,985 | 489,221 |
TOTAL | 55,621,373 | 37,708,062 | ||
Zavarovalnica Triglav's interests in associates and joint ventures
PARTICIPATING INTEREST, SHARE OF VOTING RIGHTS (%) | CARRYING AMOUNT (in EUR) | |||
COMPANY NAME | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Nama, d.d. | 0.00 | 39.07 | 0 | 4,648,981 |
KATERA Beteiligungs-Verwaltungsgesellschaft P11, mbH | 24.90 | 0.00 | 20,394,242 | 0 |
Triglavko, d.o.o. | 38.47 | 38.47 | 4,519 | 18,509 |
TRIGAL, upravljanje naložb in svetovanje, d.o.o. | 49.90 | 49.90 | 11,319,552 | 10,925,240 |
Diagnostični center Bled d.o.o. | 40.10 | 40.10 | 23,341,075 | 21,560,001 |
Alifenet, d.o.o. | 23.58 | 23.58 | 0 | 66,110 |
TOTAL | 55,059,388 | 37,218,841 | ||
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 2023 | 181,631,957 | 37,369,536 |
Capital increase of companies | 13,992,500 | 0 |
Revaluation under the equity method | 0 | 2,131,016 |
Impairment | 0 | -2,281,711 |
As at 31 December 2023 = 1 January 2024 | 195,624,457 | 37,218,841 |
Purchases | 0 | 20,350,718 |
Disposals | 0 | -4,648,980 |
Capital increase of companies | 1,000,000 | 0 |
Revaluation under the equity method | 0 | 2,204,920 |
Impairment | 0 | -66,111 |
As at 31 December 2024 | 196,624,457 | 55,059,388 |
384
In 2024, 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 investment in the associate Alifenet d.o.o. in the amount of EUR 66,111 was
recognised in the Company's separate financial statements under expenses from investments in
associates. In determining the recoverable amount of the investment in the associate Alifenet
d.o.o., the impending liquidation of the company was considered, leading to the impairment of the
3.4.1
Types of financial investments
Types of financial investments of the Triglav Group and Zavarovalnica Triglav
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Financial investments at fair value through other comprehensive income | 1,911,560,385 | 1,672,966,932 | 1,301,734,118 | 1,161,179,788 |
Debt securities and other fixed-income securities | 1,907,187,575 | 1,668,940,444 | 1,298,834,209 | 1,158,538,398 |
Equity securities | 4,372,810 | 4,026,488 | 2,899,910 | 2,641,391 |
Financial investments at amortised cost | 222,568,437 | 229,559,726 | 143,875,820 | 142,843,306 |
Debt securities and other fixed-income securities | 154,222,672 | 156,334,533 | 131,356,383 | 131,083,304 |
Equity securities | 60,833,549 | 65,794,876 | 7,212,865 | 7,212,364 |
Bank deposits | 6,622,689 | 6,557,903 | 5,306,572 | 4,547,639 |
Loans given | 889,527 | 872,414 | 0 | 0 |
Financial investments at fair value through profit or loss | 906,463,048 | 740,314,111 | 815,760,668 | 651,624,386 |
Debt securities and other fixed-income securities | 31,222,922 | 34,769,923 | 20,107,544 | 22,677,800 |
Equity securities | 875,220,316 | 705,544,188 | 795,633,313 | 628,946,586 |
Other financial instruments | 19,810 | 0 | 19,810 | 0 |
Total financial investments | 3,040,591,870 | 2,642,840,769 | 2,261,370,605 | 1,955,647,480 |
Debt securities and other fixed-income securities | 2,092,633,169 | 1,860,044,900 | 1,450,298,136 | 1,312,299,502 |
Equity securities | 879,593,126 | 709,570,676 | 798,533,223 | 631,587,976 |
Bank deposits | 60,833,549 | 65,794,876 | 7,212,865 | 7,212,364 |
Loans given | 6,622,689 | 6,557,903 | 5,306,572 | 4,547,639 |
Other financial instruments | 909,337 | 872,414 | 19,810 | 0 |
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Equity securities at fair value through profit or loss | 875,220,316 | 705,544,188 | 795,633,313 | 628,946,586 |
Of which unit-linked insurance assets | 678,910,235 | 540,890,478 | 645,594,699 | 512,824,007 |
As at 31 December 2024 and as at 31 December 2023, the Group's and the Company's portfolio
included neither received securities as collateral for loans given, nor any securities pledged as
collateral for their liabilities.
The proportion of financial investments classified as subordinated instruments by the issuer was
1.18% for the Group (31 December 2023: 1.69%) and 1.48% for the Company (31 December 2023:
2.17%).
385
Equity securities of the Triglav Group measured at fair value through other comprehensive income
in EUR | ||||
EQUITY SECURITIES AT FVOCI | ||||
Carrying amount 31 Dec 2024 | Dividends in 2024 | Carrying amount 31 Dec 2023 | Dividends in 2023 | |
ELEKTRO PRIMORSKA | 2,899,910 | 101,160 | 2,641,391 | 0 |
KRKG SV | 0 | 0 | 0 | 813,173 |
POSR SV | 0 | 0 | 0 | 38,773 |
SAVR SV | 79,291 | 0 | 78,671 | 0 |
BSRSRK1 BT | 1,284,322 | 393,670 | 1,197,139 | 98,048 |
REGISTAR VRIJ.PAPIRA BiH | 9,286 | 0 | 9,286 | 0 |
ZAVODVSEBO | 100,000 | 0 | 100,000 | 0 |
TOTAL | 4,372,809 | 494,830 | 4,026,487 | 949,994 |
The Group did not sell any equity investments disclosed in other comprehensive income in 2024,
whereas EUR 14,308,836 of such investments were sold in 2023.
These investments were sold
to manage market risks, primarily to reduce exposure to equities in local markets.
Equity securities of Zavarovalnica Triglav measured at fair value through other comprehensive
income
in EUR | ||||
EQUITY SECURITIES AT FVOCI | ||||
Carrying amount 31 Dec 2024 | Dividends in 2024 | Carrying amount 31 Dec 2023 | Dividends in 2023 | |
ELEKTRO PRIMORSKA | 2,899,910 | 101,160 | 2,641,391 | 0 |
KRKG SV | 0 | 0 | 0 | 813,173 |
POSR SV | 0 | 0 | 0 | 38,773 |
ZAVODVSEBO | 100,000 | 0 | 100,000 | 0 |
TOTAL | 2,999,910 | 101,160 | 2,741,391 | 851,946 |
The Company did not sell any equity investments disclosed in other comprehensive income in
2024, whereas EUR 14,308,836 of such investments were sold in 2023.
386
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 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 January 2024 | 1,672,966,932 | 229,559,727 | 740,314,111 | 2,642,840,770 |
Acquisitions | 1,126,281,955 | 70,484,857 | 316,063,093 | 1,512,829,905 |
Disposals | -371,137,662 | 0 | -243,746,289 | -614,883,951 |
Maturities | -581,697,675 | -85,865,313 | -14,472,373 | -682,035,361 |
Measurement of financial investments through profit or loss | 0 | 0 | 75,788,017 | 75,788,017 |
Measurement of financial investments at FVOCI | 26,595,012 | 0 | 0 | 26,595,012 |
Impairment/reversal of impairment | 3,591,957 | -257,689 | 0 | 3,334,268 |
Premiums and discounts | 3,123,940 | 5,271,173 | 0 | 8,395,113 |
Interest income | 34,405,209 | 3,339,335 | 1,147,039 | 38,891,583 |
Realised gains/losses in profit or loss | -3,314,397 | -335 | 30,986,687 | 27,671,955 |
Exchange rate differences | 745,114 | 36,682 | 382,763 | 1,164,559 |
As at 31 December 2024 | 1,911,560,385 | 222,568,437 | 906,463,048 | 3,040,591,870 |
Movement in financial investments of Zavarovalnica Triglav
in EUR | ||||
FVOCI | AC | FVTPL | TOTAL | |
As at 1 January 2023 | 1,220,117,377 | 151,767,346 | 587,842,211 | 1,959,726,934 |
Acquisitions | 257,136,228 | 2,254,287 | 182,513,415 | 441,903,930 |
Disposals | -251,103,185 | -30,730 | -167,905,407 | -419,039,322 |
Maturities | -142,067,068 | -17,986,682 | -1,462,566 | -161,516,316 |
Measurement of financial investments through profit or loss | 0 | 0 | 42,465,326 | 42,465,326 |
Measurement of financial investments at FVOCI | 58,369,815 | 0 | 0 | 58,369,815 |
Impairment/reversal of impairment | 1,394,621 | 96,281 | 0 | 1,490,902 |
Premiums and discounts | -1,092,347 | 5,162,258 | 0 | 4,069,911 |
Interest income | 15,874,934 | 1,576,777 | 780,662 | 18,232,374 |
Realised gains/losses in profit or loss | -9,082,410 | 0 | 7,404,897 | -1,677,513 |
Realised gains/losses in retained earnings | 11,630,646 | 0 | 0 | 11,630,646 |
Exchange rate differences | 1,178 | 3,769 | -14,153 | -9,206 |
As at 31 December 2023 = 1 January 2024 | 1,161,179,788 | 142,843,306 | 651,624,386 | 1,955,647,480 |
Acquisitions | 799,855,035 | 32,447,720 | 289,323,962 | 1,121,626,717 |
Disposals | -340,405,360 | 0 | -221,444,146 | -561,849,506 |
Maturities | -359,469,332 | -38,115,952 | -6,009,888 | -403,595,172 |
Measurement of financial investments through profit or loss | 0 | 0 | 70,715,957 | 70,715,957 |
Measurement of financial investments at FVOCI | 18,713,625 | 0 | 0 | 18,713,625 |
Impairment/reversal of impairment | 2,764,350 | -9,352 | 0 | 2,754,998 |
Premiums and discounts | 2,981,387 | 5,271,173 | 0 | 8,252,560 |
Interest income | 18,592,317 | 1,438,924 | 786,964 | 20,818,205 |
Realised gains/losses in profit or loss | -2,543,756 | 0 | 30,585,949 | 28,042,194 |
Exchange rate differences | 66,063 | 0 | 177,484 | 243,547 |
As at 31 December 2024 | 1,301,734,118 | 143,875,820 | 815,760,667 | 2,261,370,605 |
387
Return on financial investments
Return on financial investments of the Triglav Group and Zavarovalnica Triglav
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Interest income calculated using the effective interest method | 47,286,696 | 34,922,060 | 29,070,766 | 22,126,049 |
Dividend income | 2,599,868 | 2,705,064 | 2,019,695 | 2,441,534 |
Net gains/losses on financial investments at FVOCI | -3,314,398 | -6,266,497 | -2,543,756 | -6,044,892 |
Realised gains | 4,432,036 | 407,591 | 4,172,817 | 331,465 |
Realised losses | -7,746,434 | -6,674,088 | -6,716,573 | -6,376,357 |
Net gains/losses on financial investments at FVTPL | 106,774,705 | 55,703,659 | 101,301,906 | 49,864,264 |
Realised gains | 30,997,922 | 8,487,274 | 30,594,227 | 7,627,745 |
Realised losses | -11,234 | -615,797 | -8,277 | -228,807 |
Unrealised gains | 78,253,663 | 52,042,824 | 73,169,971 | 46,136,429 |
Unrealised losses | -2,465,646 | -4,210,642 | -2,454,014 | -3,671,102 |
Net gains/losses on financial investments at AC | -335 | 464 | 0 | 0 |
Net impairment/reversal of impairment | 3,334,270 | 2,162,900 | 2,754,998 | 1,362,044 |
Impairment expenses | -2,985,318 | -1,872,528 | -1,736,356 | -1,014,851 |
Income from reversal of impairment | 6,319,588 | 4,035,427 | 4,491,354 | 2,376,894 |
Other income and expenses from investing activities | 3,065,770 | -2,670,851 | 2,257,704 | 72,255 |
Income from positive exchange rate differences | 952,730 | 39,119 | 236,723 | 30,871 |
Expenses from negative exchange rate differences | -133,573 | -2,847,937 | -96,992 | -40,078 |
Other income from financial investments | 2,927,194 | 771,502 | 2,899,361 | 618,212 |
Other expenses from financial investments | -680,581 | -633,535 | -781,388 | -536,749 |
TOTAL RETURN ON FINANCIAL INVESTMENTS including return on unit-linked insurance assets (continuing operations) | 159,746,576 | 86,556,798 | 134,861,313 | 69,821,254 |
TOTAL RETURN ON FINANCIAL INVESTMENTS including return on unit-linked insurance assets (discontinued operations) | 0 | -2.725.610 | 0 | -2.725.610 |
TOTAL RETURN ON FINANCIAL INVESTMENTS including return on unit-linked insurance assets | 159.746.576 | 83.831.188 | 134.861.313 | 67.095.644 |
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Return on unit-linked insurance assets | 98,008,220 | 49,559,643 | 95,175,748 | 46,224,967 |
Unrealised gains/losses on financial investments at fair value through profit or loss | 67,385,697 | 42,815,347 | 64,754,722 | 39,604,254 |
Other income/expenses from unit-linked insurance assets | 30,622,523 | 6,744,296 | 30,421,026 | 6,620,713 |
Impairment of financial investments
Movement in ECL impairment of the Triglav Group
in EUR | ||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||
Gross carrying amount | ECL adjustment | Amortised cost | Gross carrying amount | ECL adjustment | Amortised cost | |
Financial investments FVOCI | 2,001,808,250 | -3,123,402 | 1,998,684,848 | 1,797,038,900 | -6,712,145 | 1,790,326,755 |
Debt securities at FVOCI | 2,001,808,250 | -3,123,402 | 1,998,684,848 | 1,797,038,900 | -6,712,145 | 1,790,326,755 |
Financial investments AC | 223,028,171 | -1,349,261 | 221,678,910 | 229,768,093 | -1,080,780 | 228,687,313 |
Debt securities at AC | 154,328,236 | -105,564 | 154,222,672 | 156,437,924 | -103,391 | 156,334,533 |
Bank deposits | 61,147,987 | -314,438 | 60,833,549 | 65,856,652 | -61,776 | 65,794,876 |
Loans | 7,551,948 | -929,259 | 6,622,689 | 7,473,517 | -915,613 | 6,557,904 |
TOTAL | 2,224,836,421 | -4,472,663 | 2,220,363,758 | 2,026,806,993 | -7,792,925 | 2,019,014,068 |
388
in EUR | ||||
Financial investments FVOCI | Stage 1 | Stage 2 | Stage 3 | TOTAL |
Gross carrying amount as at 1 Jan 2023 | 1,811,810,158 | 8,116,516 | 7,982,754 | 1,827,909,428 |
Purchases | 457,853,313 | 50,249 | 0 | 457,903,562 |
Disposals, maturities | -513,595,844 | -236,502 | -192,625 | -514,024,971 |
Interest | 25,081,913 | 305,629 | 98,306 | 25,485,848 |
Transfer to Stage 1 | -1,380,039 | 1,380,039 | 0 | 0 |
Transfer to Stage 2 | 774,724 | -774,724 | 0 | 0 |
Other changes | -234,375 | -592 | 0 | -234,967 |
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 | 1,780,309,850 | 8,840,615 | 7,888,435 | 1,797,038,900 |
Purchases | 1,124,265,507 | 0 | 0 | 1,124,265,507 |
Disposals, maturities | -948,710,320 | -1,683,644 | -7,888,435 | -958,282,399 |
Interest | 37,210,149 | 315,053 | 0 | 37,525,202 |
Transfer to Stage 1 | 1,516,881 | -1,516,881 | 0 | 0 |
Transfer to Stage 2 | -4,574,928 | 4,574,928 | 0 | 0 |
Other changes | 1,258,889 | 2,151 | 0 | 1,261,040 |
Gross carrying amount as at 31 Dec 2024 | 1,991,276,028 | 10,532,222 | 0 | 2,001,808,250 |
in EUR | ||||
Financial investments FVOCI | Stage 1 | Stage 2 | Stage 3 | TOTAL |
ECL adjustment as at 1 Jan 2023 | -4,350,710 | -509,265 | -3,778,010 | -8,637,985 |
Purchases | -206,194 | 0 | 0 | -206,194 |
Disposals, maturities | 295,172 | 0 | 0 | 295,172 |
Change in ECL adjustment | 1,495,582 | 92,377 | 248,490 | 1,836,449 |
Transfer to Stage 1 | 434 | -434 | 0 | 0 |
Transfer to Stage 2 | -182,339 | 182,339 | 0 | 0 |
Other changes | 446 | -30 | 0 | 416 |
ECL adjustment as at 31 Dec 2023 = 1 Jan 2024 | -2,947,609 | -235,013 | -3,529,520 | -6,712,142 |
Purchases | -997,210 | 0 | 0 | -997,210 |
Disposals, maturities | 578,436 | 4,788 | 3,227,514 | 3,810,738 |
Change in ECL adjustment | 589,761 | -116,819 | 302,007 | 774,949 |
Transfer to Stage 1 | -174,033 | 174,033 | 0 | 0 |
Transfer to Stage 2 | 109,147 | -109,147 | 0 | 0 |
Other changes | 263 | 0 | 0 | 263 |
ECL adjustment as at 31 December 2024 | -2,841,245 | -282,158 | 0 | -3,123,402 |
in EUR | ||||
Financial investments AC | Stage 1 | Stage 2 | Stage 3 | TOTAL |
Gross carrying amount as at 1 Jan 2023 | 240,084,610 | 495,350 | 946,366 | 241,526,326 |
Purchases | 31,009,939 | 0 | 0 | 31,009,939 |
Disposals, maturities | -51,095,442 | 0 | -52,542 | -51,147,984 |
Interest | 8,356,856 | 2,901 | 0 | 8,359,757 |
Transfer to Stage 1 | 498,251 | -498,251 | 0 | 0 |
Other changes | 20,055 | 0 | 0 | 20,055 |
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 | 228,874,269 | 0 | 893,824 | 229,768,093 |
Purchases | 71,326,450 | 0 | 0 | 71,326,450 |
Disposals, maturities | -86,629,391 | 0 | 0 | -86,629,391 |
Interest | 8,598,704 | 0 | 0 | 8,598,704 |
Other changes | -35,685 | 0 | 0 | -35,685 |
Gross carrying amount as at 1 Jan 2024 | 222,134,347 | 0 | 893,824 | 223,028,171 |
389
in EUR | ||||
Financial investments AC | Stage 1 | Stage 2 | Stage 3 | TOTAL |
ECL adjustment as at 1 Jan 2023 | -491,099 | -464 | -964,482 | -1,456,045 |
Purchases | -88,105 | 0 | 0 | -88,105 |
Disposals, maturities | 24,587 | 0 | 48,908 | 73,495 |
Change in ECL adjustment | 390,250 | 0 | 0 | 390,250 |
Transfer to Stage 1 | -464 | 464 | 0 | 0 |
Other changes | -375 | 0 | 0 | -375 |
ECL adjustment as at 31 Dec 2023 = 1 Jan 2024 | -165,206 | 0 | -915,574 | -1,080,780 |
Purchases | -159,384 | 0 | 0 | -159,384 |
Disposals, maturities | 27,470 | 0 | 0 | 27,470 |
Change in ECL adjustment | -136,567 | 0 | 0 | -136,567 |
ECL adjustment as at 31 Dec 2024 | -433,687 | 0 | -915,574 | -1,349,261 |
Movement in ECL impairment of Zavarovalnica Triglav
in EUR | ||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||
Gross carrying amount | ECL adjustment | Amortised cost | Gross carrying amount | ECL adjustment | Amortised cost | |
Financial investments FVOCI | 1,383,950,075 | -1,973,342 | 1,381,976,734 | 1,265,699,097 | -4,737,691 | 1,260,961,406 |
- Debt securities at FVOCI | 1,383,950,075 | -1,973,342 | 1,381,976,734 | 1,265,699,097 | -4,737,691 | 1,260,961,406 |
Financial investments AC | 143,977,289 | -101,469 | 143,875,820 | 142,935,424 | -92,118 | 142,843,306 |
- Debt securities at AC | 131,442,995 | -86,612 | 131,356,383 | 131,171,044 | -87,740 | 131,083,304 |
- Bank deposits | 7,214,042 | -1,177 | 7,212,865 | 7,214,042 | -1,678 | 7,212,364 |
- Loans | 5,320,252 | -13,680 | 5,306,572 | 4,550,339 | -2,700 | 4,547,639 |
TOTAL | 1,527,927,364 | -2,074,811 | 1,525,852,554 | 1,408,634,520 | -4,829,809 | 1,403,804,712 |
in EUR | ||||
Financial investments FVOCI | Stage 1 | Stage 2 | Stage 3 | TOTAL |
Gross carrying amount as at 1 Jan 2023 | 1,372,462,483 | 2,749,311 | 5,918,470 | 1,381,130,264 |
Purchases | 257,136,226 | 0 | 0 | 257,136,226 |
Disposals, maturities | -387,107,159 | -108,875 | -135,125 | -387,351,159 |
Interest | 14,607,348 | 110,339 | 64,900 | 14,782,587 |
Transfer to Stage 1 | -1,579,655 | 1,579,655 | 0 | 0 |
Transfer to Stage 2 | 1,790,589 | -1,790,589 | 0 | 0 |
Other changes | 1,178 | 0 | 0 | 1,178 |
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 | 1,257,311,010 | 2,539,842 | 5,848,245 | 1,265,699,097 |
Purchases | 799,855,035 | 0 | 0 | 799,855,035 |
Disposals, maturities | -696,889,199 | -506,378 | -5,848,245 | -703,243,823 |
Interest | 21,416,504 | 157,200 | 0 | 21,573,705 |
Transfer to Stage 1 | 1,516,881 | -1,516,881 | 0 | 0 |
Transfer to Stage 2 | -3,051,265 | 3,051,265 | 0 | 0 |
Other changes | 66,063 | 0 | 0 | 66,063 |
Gross carrying amount as at 31 Dec2024 | 1,380,225,029 | 3,725,047 | 0 | 1,383,950,076 |
390
in EUR | ||||
Financial investments FVOCI | Stage 1 | Stage 2 | Stage 3 | TOTAL |
ECL adjustment as at 1 Jan 2023 | -2,992,871 | -286,640 | -2,852,801 | -6,132,312 |
Purchases | -10,727 | 0 | 0 | -10,727 |
Disposals, maturities | 272,945 | 0 | 0 | 272,945 |
Change in ECL adjustment | 842,655 | 54,124 | 235,624 | 1,132,403 |
Transfer to Stage 2 | 2,549 | -2,549 | 0 | 0 |
Transfer to Stage 3 | -203,127 | 203,127 | 0 | 0 |
ECL adjustment as at 31 Dec 2023 = 1 Jan2024 | -2,088,576 | -31,938 | -2,617,177 | -4,737,691 |
Purchases | -854,420 | 0 | 0 | -854,420 |
Disposals, maturities | 441,719 | 2,816 | 2,324,535 | 2,769,069 |
Change in ECL adjustment | 640,977 | -83,919 | 292,642 | 849,700 |
Transfer to Stage 1 | -174,056 | 174,056 | 0 | 0 |
Transfer to Stage 2 | 101,469 | -101,469 | 0 | 0 |
ECL adjustment as at 31 Dec 2024 | -1,932,888 | -40,454 | 0 | -1,973,342 |
All debt securities and deposits measured at amortised cost are classified into Stage 1. The
movements in gross carrying amount and ECL adjustment are shown in the tables below.
in EUR | |
Financial investments AC | TOTAL |
Gross carrying amount as at 1 Jan 2023 | 151,955,745 |
Purchases | 2,254,287 |
Disposals, maturities | -18,017,412 |
Interest | 6,739,035 |
Other changes | 3,769 |
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 | 142,935,424 |
Purchases | 32,851,754 |
Disposals, maturities | -38,519,986 |
Interest | 6,710,097 |
Gross carrying amount as at 31 Dec 2024 | 143,977,289 |
in EUR | |
Debt securities at AC | TOTAL |
ECL adjustment as at 1 Jan 2023 | -188,398 |
Purchases | -272 |
Disposals, maturities | 3,834 |
Change in ECL adjustment | 92,982 |
Other changes | -264 |
ECL adjustment as at 31 Dec 2023 = 1 Jan 2024 | -92,118 |
Purchases | -38,019 |
Disposals, maturities | 17,851 |
Change in ECL adjustment | 10,817 |
ECL adjustment as at 31 Dec 2024 | -101,469 |
391
3.5
Financial contract assets and liabilities
Assets and liabilities from financial contracts of the Triglav Group and Zavarovalnica Triglav
Financial contract assets and liabilities relate to the assets and liabilities of the pension
insurance guarantee fund in the accumulation phase. A description of the guarantee fund is
provided in Section 2.1.1.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Financial investments from financial contracts | 739,510,939 | 650,042,171 | 284,582,910 | 255,841,271 |
Receivables from financial contracts | 405,599 | 123,066 | 314,486 | 83,130 |
Cash from financial contracts | 15,090,620 | 23,949,908 | 5,946,434 | 3,699,640 |
Total financial contract assets | 755,007,158 | 674,115,145 | 290,843,831 | 259,624,041 |
Liabilities to pension fund members | 751,594,310 | 671,920,612 | 289,765,395 | 258,978,506 |
Other liabilities to pension funds | 3,412,848 | 2,194,533 | 1,078,436 | 645,535 |
Total financial contract liabilities | 755,007,158 | 674,115,145 | 290,843,831 | 259,624,041 |
3.5.1
Types of investments from financial contracts
Types of investments from financial contracts of the Triglav Group and Zavarovalnica Triglav
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Financial investments at AC | 245,995,862 | 283,215,425 | 77,040,080 | 86,215,285 |
Debt securities and other fixed-income securities | 245,995,862 | 283,215,425 | 77,040,080 | 86,215,285 |
Financial investments at fair value through profit or loss | 493,515,077 | 366,826,746 | 207,542,830 | 169,625,986 |
Debt securities and other fixed-income securities | 292,168,499 | 214,934,774 | 123,045,853 | 96,181,144 |
Equity securities | 201,346,578 | 151,891,972 | 84,496,977 | 73,444,843 |
Total financial investments from financial contracts | 739,510,939 | 650,042,171 | 284,582,910 | 255,841,271 |
Debt securities and other fixed-income securities | 538,164,361 | 498,150,199 | 200,085,933 | 182,396,429 |
Equity securities | 201,346,578 | 151,891,972 | 84,496,977 | 73,444,843 |
Receivables from financial contracts | 405,599 | 123,066 | 314,486 | 83,130 |
Cash and cash equivalents from financial contracts | 15,090,620 | 23,949,908 | 5,946,434 | 3,699,640 |
TOTAL ASSETS FROM FINANCIAL CONTRACTS | 755,007,158 | 674,115,145 | 290,843,831 | 259,624,041 |
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 Jan 2023 | 321,859,990 | 267,173,099 | 589,033,089 |
Purchases | 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 Dec 2023 = 1 Jan 2024 | 283,215,425 | 366,826,746 | 650,042,171 |
Purchases | 2,002,667 | 260,245,624 | 262,248,291 |
Disposals | -997,249 | -94,030,155 | -95,027,404 |
Maturities | -43,776,079 | -90,553,996 | -134,330,075 |
Measurement of investments through profit or loss | 0 | 35,295,311 | 35,295,311 |
Impairment/reversal of impairment | 67,757 | 0 | 67,757 |
Premiums and discounts | 819,392 | 0 | 819,392 |
Interest income | 4,669,324 | 5,889,755 | 10,559,079 |
Realised gains/losses in profit or loss | -5,375 | 4,441,130 | 4,435,755 |
Exchange rate differences | 0 | 5,400,662 | 5,400,662 |
As at 31 Dec 2024 | 245,995,862 | 493,515,077 | 739,510,939 |
392
Movement in investments from financial contracts of Zavarovalnica Triglav
in EUR | |||
AC | FVTPL | TOTAL | |
As at 1 Jan 2023 | 99,398,022 | 131,403,313 | 230,801,335 |
Purchases | 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 Dec 2023 = 1 Jan 2024 | 86,215,285 | 169,625,986 | 255,841,271 |
Purchases | 0 | 100,640,895 | 100,640,895 |
Disposals | -997,249 | -35,622,542 | -36,619,791 |
Maturities | -10,087,980 | -50,734,046 | -60,822,026 |
Measurement of investments through profit or loss | 0 | 14,856,036 | 14,856,036 |
Impairment/reversal of impairment | 50,335 | 0 | 50,335 |
Premiums and discounts | 819,392 | 0 | 819,392 |
Interest income | 1,045,672 | 1,865,817 | 2,911,488 |
Realised gains/losses in profit or loss | -5,375 | 4,344,983 | 4,339,609 |
Exchange rate differences | 0 | 2,565,700 | 2,565,700 |
As at 31 Dec 2024 | 77,040,080 | 207,542,830 | 284,582,910 |
3.5.3
Return on investments from financial contracts
Return on investments from financial contracts of the Triglav Group and Zavarovalnica Triglav
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Interest income calculated using the effective interest method | 11,378,471 | 9,851,287 | 3,730,881 | 3,506,332 |
Dividend income | 2,120,211 | 1,700,237 | 923,398 | 920,242 |
Net gains and losses on financial investments | 39,731,067 | 28,129,912 | 19,195,645 | 14,632,667 |
Realised gains/losses | 4,435,756 | 371,704 | 4,339,609 | 517,564 |
Unrealised gains/losses | 35,295,311 | 27,758,208 | 14,856,036 | 14,115,103 |
Net impairment and reversal of impairment of financial investments | 67,757 | 309,953 | 50,335 | 105,066 |
Other investment income/expenses | 11,219,436 | -1,355,387 | 2,772,948 | -1,362,012 |
Exchange rate differences | 5,623,998 | -1,878,770 | 2,789,036 | -990,029 |
Other investment income/expenses | 5,595,438 | 523,383 | -16,089 | -371,983 |
TOTAL RETURN ON INVESTMENTS FROM FINANCIAL CONTRACTS | 64,516,942 | 38,636,002 | 26,673,205 | 17,802,295 |
Impairment of investments from financial contracts
Movement in ECL impairment of investments from financial contracts of the Triglav Group
in EUR | ||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||
| Gross | ECL adjustment | Carrying amount | Gross | ECL adjustment | Carrying amount | |
Debt securities at AC | 246,237,499 | -241,636 | 245,995,863 | 283,524,818 | -309,392 | 283,215,426 |
TOTAL | 246,237,499 | -241,636 | 245,995,863 | 283,524,818 | -309,392 | 283,215,426 |
393
All financial investments from financial contracts are classified in Stage 1. The movements in
gross carrying amount and ECL adjustments are shown in the table below.
in EUR | ||
Debt securities at AC | Gross carrying amount | ECL adjustment |
Gross carrying amount as at 1 Jan 2023 | 322,479,336 | -619,345 |
Purchases | 4,996,330 | -1,472 |
Disposals, maturities | -50,230,672 | 6,917 |
Interest | 6,279,625 | 0 |
Change in ECL adjustment | 0 | 304,508 |
Other changes | 199 | 0 |
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 | 283,524,818 | -309,392 |
Purchases | 2,002,667 | 0 |
Disposals, maturities | -44,778,702 | 920 |
Interest | 5,488,716 | 0 |
Change in ECL adjustment | 0 | 66,836 |
Gross carrying amount as at 31 Dec 2024 | 246,237,499 | -241,636 |
Movement in ECL impairment of investments from financial contracts of Zavarovalnica Triglav
in EUR | ||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||
| Gross | ECL adjustment | Carrying amount | Gross | ECL adjustment | Carrying amount | |
Debt securities at AC | 77,133,762 | -93,681 | 77,040,080 | 86,359,301 | -144,016 | 86,215,285 |
TOTAL | 77,133,762 | -93,681 | 77,040,080 | 86,359,301 | -144,016 | 86,215,285 |
All financial investments from financial contracts are classified in Stage 1. The movements in
gross carrying amount and ECL adjustments are shown in the tables below.
Financial contract liabilities
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Liabilities to PDPZ zajamčeni fund members | 530,844,279 | 520,589,186 | 195,877,632 | 193,561,131 |
Liabilities to PDPZ zmerni, mešani fund members | 100,751,416 | 74,253,819 | 42,180,709 | 31,243,232 |
Liabilities to PDPZ drzni, delniški fund members | 119,998,615 | 77,077,607 | 51,707,054 | 34,174,144 |
Other financial contract liabilities | 3,412,850 | 2,194,534 | 1,078,436 | 645,535 |
TOTAL | 755,007,160 | 674,115,146 | 290,843,831 | 259,624,041 |
The guaranteed amount of the Triglav Group's liabilities to PDPZ zajamčeni fund members as at
31 December 2024 was EUR 512,963,078 (31 December 2023: EUR 510,158,978), and the
guaranteed amount of Zavarovalnica Triglav's liabilities to PDPZ zajamčeni fund members as at
31 December 2024 was EUR 183,562,020 (31 December 2023: EUR 185,011,650).
in EUR | ||
Debt securities at AC | Gross | ECL adjustment |
Gross carrying amount as at 1 Jan 2023 | 99,647,104 | -249,082 |
Purchases | 991,330 | -1,472 |
Disposals, maturities | -16,494,208 | 6,917 |
Interest | 2,215,075 | 0 |
Change in ECL adjustment | 0 | 99,621 |
Gross carrying amount as at 31 Dec 2023 = 1 Jan 2024 | 86,359,301 | -144,016 |
Disposals, maturities | -11,090,604 | 921 |
Interest | 1,865,064 | 0 |
Change in ECL adjustment | 0 | 49,414 |
Gross carrying amount as at 31 Dec 2024 | 77,133,762 | -93,681 |
394
Financial contract liabilities of the Triglav Group
in EUR | ||||
| PDPZ zajamčeni | PDPZ zmerni, mešani | PDPZ drzni, delniški | TOTAL | |
As at 1 Jan 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 Dec 2023 = 1 Jan 2024 | 520,589,186 | 74,253,819 | 77,077,607 | 671,920,612 |
Fund inflows | 32,235,891 | 9,719,100 | 19,052,677 | 61,007,668 |
Fund outflows | -31,767,417 | -834,031 | -752,557 | -33,354,005 |
Investment return of funds | 20,794,985 | 17,355,877 | 26,366,080 | 64,516,942 |
Expenses for fund fees | -5,797,958 | -1,006,789 | -1,224,394 | -8,029,141 |
Other fund expenses and costs | -159,764 | -63,787 | -84,030 | -307,581 |
Transfers between funds | -5,050,644 | 1,327,227 | -436,768 | -4,160,185 |
As at 31 Dec 2024 | 530,844,279 | 100,751,416 | 119,998,615 | 751,594,310 |
Financial contract liabilities of Zavarovalnica Triglav
in EUR | ||||
| PDPZ zajamčeni | PDPZ zmerni | PDPZ drzni | TOTAL | |
As at 1 Jan 2023 | 188,171,802 | 23,385,516 | 22,897,307 | 234,454,625 |
Fund inflows | 11,969,656 | 3,460,000 | 6,123,518 | 21,553,174 |
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 Dec 2023 = 1 Jan 2024 | 193,561,131 | 31,243,232 | 34,174,144 | 258,978,506 |
Fund inflows | 10,724,310 | 3,465,182 | 6,616,135 | 20,805,627 |
Fund outflows | -12,630,315 | -445,592 | -416,124 | -13,492,031 |
Investment return of funds | 8,729,355 | 7,134,107 | 10,809,744 | 26,673,206 |
Expenses for fund fees | -2,190,826 | -427,449 | -539,775 | -3,158,050 |
Other fund expenses and costs | 0 | -19,654 | -22,209 | -41,863 |
Transfers between funds | -2,316,023 | 1,230,883 | 1,085,140 | 0 |
As at 31 Dec 2024 | 195,877,632 | 42,180,709 | 51,707,054 | 289,765,395 |
395
3.5.5.1
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 2024 and 31
December 2023 is shown below.
31 Dec 2024 | in EUR | ||||
< 1 year | 1-5 years | 5-10 years | > 10 years | TOTAL | |
Liabilities to PDPZ zajamčeni fund members | 9,449,004 | 45,226,931 | 76,416,981 | 399,751,363 | 530,844,279 |
Liabilities to PDPZ zmerni, mešani fund members | 1,556,079 | 8,947,339 | 15,810,382 | 74,437,616 | 100,751,416 |
Liabilities to PDPZ drzni, delniški fund members | 4,939,119 | 23,782,904 | 33,026,250 | 58,250,342 | 119,998,615 |
TOTAL | 15,944,202 | 77,957,174 | 125,253,613 | 532,439,321 | 751,594,310 |
31 Dec 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 |
3.5.5.2
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 2024 and
31 December 2023 is shown below.
31 Dec 2024 | in EUR | ||||
< 1 year | 1-5 year | 5-10 year | > 10 year | TOTAL | |
Liabilities to PDPZ zajamčeni fund members | 4,260,191 | 19,761,426 | 30,500,920 | 141,355,095 | 195,877,632 |
Liabilities to PDPZ zmerni fund members | 821,012 | 4,378,773 | 7,495,834 | 29,485,090 | 42,180,709 |
Liabilities to PDPZ drzni fund members | 2,402,997 | 11,415,221 | 14,927,474 | 22,961,361 | 51,707,054 |
TOTAL | 7,484,200 | 35,555,420 | 52,924,229 | 193,801,546 | 289,765,395 |
31 Dec 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 |
396
Operating expenses
Operating expenses of Triglav Group
in EUR | ||||||
2024 | Attributable acquisition costs | Attributable claim handling expenses | Attributable administrative costs | Non-attributable expenses of insurance companies | Expenses of non- insurance companies | TOTAL |
OPERATING EXPENSES | 235,989,740 | 29,527,952 | 83,998,154 | 56,064,132 | 58,273,057 | 463,853,035 |
Acquisition costs | 107,309,221 | -72 | 86,752 | 387,090 | 0 | 107,782,991 |
Depreciation costs | 3,243,559 | 268,178 | 1,567,759 | 18,538,975 | 3,709,048 | 27,327,519 |
Depreciation costs of leased assets | 2,730,736 | 250,209 | 777,517 | 1,032,466 | 1,263,340 | 6,054,268 |
Depreciation costs of other operating assets | 512,823 | 17,969 | 790,242 | 17,506,509 | 2,445,708 | 21,273,251 |
Labour costs | 94,319,744 | 22,636,733 | 56,136,991 | 10,185,427 | 23,219,337 | 206,498,232 |
Wages and salaries | 68,575,002 | 15,781,649 | 36,673,258 | 6,313,410 | 16,494,892 | 143,838,211 |
Social and pension insurance costs | 14,037,784 | 3,493,523 | 8,158,849 | 1,323,708 | 4,191,575 | 31,205,439 |
Other labour costs | 11,706,958 | 3,361,561 | 11,304,884 | 2,548,309 | 2,532,870 | 31,454,582 |
Costs of services | 31,117,216 | 6,623,113 | 26,206,652 | 26,952,640 | 31,292,214 | 122,191,835 |
Costs of entertainment, advertising and trade shows | 11,106,200 | 26,872 | 163,435 | 12,242,240 | 2,197,282 | 25,736,029 |
Maintenance costs | 4,321,299 | 1,193,249 | 8,631,171 | 765,699 | 1,962,462 | 16,873,880 |
Costs of materials and energy | 3,488,146 | 856,191 | 1,424,013 | 394,753 | 2,360,980 | 8,524,083 |
Costs of payment transactions and banking services | 583,523 | 983 | 1,466,984 | 45,827 | 283,871 | 2,381,188 |
Insurance premium costs | 233,433 | 26,219 | 215,250 | 1,142,696 | 456,186 | 2,073,784 |
Costs of intellectual services | 314,051 | 706,946 | 1,012,138 | 5,572,377 | 1,861,135 | 9,466,647 |
Training costs | 357,602 | 107,724 | 460,309 | 439,236 | 339,473 | 1,704,344 |
Expenses for short-term leases, low-value leases and other leases | 1,950,180 | 619,864 | 4,876,787 | 487,103 | 1,462,369 | 9,396,303 |
Costs of transport and communications services | 2,698,810 | 468,565 | 1,673,032 | 216,591 | 483,730 | 5,540,728 |
Reimbursement of labour-related costs | 2,855,713 | 160,355 | 806,347 | 505,067 | 1,268,869 | 5,596,351 |
Costs of services provided by natural persons other than sole proprietors | 484,445 | 558,772 | 469,531 | 99,691 | 573,892 | 2,186,331 |
Other costs of services | 2,723,814 | 1,897,373 | 5,007,655 | 5,041,360 | 18,041,965 | 32,712,167 |
Cost of goods sold | 0 | 0 | 0 | 0 | 52,458 | 52,458 |
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES | 214,163 | 7,007,582 | 23,231,068 | 0 | 0 | 30,452,813 |
CHANGE IN DEFERRED ACQUISITION COSTS | -27,435,542 | 0 | 0 | 0 | 0 | -27,435,542 |
EXPENSES BEFORE ELIMINATION OF INTERCOMPANY TRANSACTIONS | 208,768,361 | 36,535,534 | 107,229,222 | 56,064,132 | 58,273,057 | 466,870,306 |
Elimination of intercompany transactions | -1,022,550 | 0 | -1,851,303 | -10,700,778 | -2,448,583 | -16,023,214 |
Total expenses from continuing operations | 207,745,811 | 36,535,534 | 105,377,919 | 45,363,354 | 55,824,474 | 450,847,092 |
Expenses from discontinued operations | -38,105 | -7,813 | -894,984 | -236,860 | 0 | -1,177,761 |
TOTAL | 207,707,707 | 36,527,721 | 104,482,935 | 45,126,494 | 55,824,474 | 449,669,331 |
397
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 | 55,217,194 | 50,425,262 | 434,105,275 |
Acquisition costs | 92,612,498 | 864 | 0 | 53,564 | 0 | 92,666,926 |
Depreciation costs | 2,303,426 | 381,862 | 1,357,867 | 19,049,560 | 3,198,951 | 26,291,666 |
Depreciation costs of leased assets | 1,736,408 | 268,129 | 775,675 | 2,747,465 | 1,171,335 | 6,699,012 |
Depreciation costs of other operating assets | 567,018 | 113,733 | 582,192 | 16,302,095 | 2,027,616 | 19,592,654 |
Labour costs | 90,886,243 | 23,014,544 | 54,812,664 | 9,186,033 | 20,048,116 | 197,947,600 |
Wages and salaries | 65,040,590 | 15,777,470 | 35,874,972 | 5,917,707 | 14,169,110 | 136,779,849 |
Social and pension insurance costs | 13,312,820 | 3,473,736 | 7,967,360 | 1,230,325 | 3,795,528 | 29,779,769 |
Other labour costs | 12,532,833 | 3,763,338 | 10,970,332 | 2,038,001 | 2,083,478 | 31,387,982 |
Costs of services | 28,866,151 | 6,595,398 | 27,631,302 | 26,928,037 | 27,243,481 | 117,264,369 |
Costs of entertainment, advertising and trade shows | 8,133,825 | 19,067 | 172,839 | 13,607,741 | 1,677,006 | 23,610,478 |
Maintenance costs | 4,463,095 | 1,204,444 | 9,006,364 | 554,279 | 1,494,339 | 16,722,521 |
Costs of materials and energy | 4,381,093 | 1,000,413 | 1,656,737 | 398,952 | 2,609,989 | 10,047,184 |
Costs of payment transactions and banking services | 675,772 | 10,958 | 1,585,406 | 33,313 | 244,828 | 2,550,277 |
Insurance premium costs | 178,942 | 16,150 | 240,475 | 1,362,478 | 315,692 | 2,113,737 |
Costs of intellectual services | 289,576 | 606,173 | 1,017,448 | 4,840,609 | 2,649,787 | 9,403,593 |
Training costs | 363,077 | 136,539 | 545,787 | 274,856 | 239,061 | 1,559,320 |
Expenses for short-term leases, low-value leases and other leases | 1,656,454 | 717,901 | 4,476,567 | 464,788 | 961,060 | 8,276,770 |
Costs of transport and communications services | 2,784,319 | 536,092 | 2,566,509 | 141,165 | 431,208 | 6,459,293 |
Reimbursement of labour-related costs | 3,049,244 | 150,510 | 734,771 | 492,654 | 1,169,362 | 5,596,541 |
Costs of services provided by natural persons other than sole proprietors | 316,582 | 554,606 | 491,375 | 161,818 | 546,427 | 2,070,808 |
Other costs of services | 2,574,172 | 1,642,545 | 5,137,024 | 4,595,384 | 14,904,722 | 28,853,847 |
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 |
EXPENSES BEFORE ELIMINATION OF INTERCOMPANY TRANSACTIONS | 201,265,085 | 33,836,971 | 103,336,519 | 55,420,590 | 50,425,262 | 444,284,427 |
Elimination of intercompany transactions | -1,080,481 | 0 | -1,511,838 | -10,469,734 | -2,207,647 | -15,269,700 |
Total expenses from continuing operations | 200,184,604 | 33,836,971 | 101,824,681 | 44,950,856 | 48,217,615 | 429,014,727 |
Expenses from discontinued operations | -884,790 | -101,233 | -12,441,022 | -2,043,895 | 0 | -15,470,939 |
TOTAL | 199,299,814 | 33,735,738 | 89,383,659 | 42,906,961 | 48,217,615 | 413,543,788 |
Among other service costs, the Group mainly discloses expenses for fund fees, which amounted to EUR 12,965,384 in 2024 (2023: EUR 9,984,023),
costs of computer services, which amounted to EUR 3,671,481 in 2024 (2023: EUR 3,211,758), and costs of property protection services, which
amounted to EUR 1,775,646 in 2024 (2023: EUR 1,675,798).
398
Operating expenses of Zavarovalnica Triglav
in EUR | |||||
2024 | Attributable acquisition costs | Attributable claim handling expenses | Attributable administrative costs | Non-attributable expenses | TOTAL |
OPERATING EXPENSES | 160,089,322 | 20,951,540 | 61,253,609 | 43,967,252 | 286,261,724 |
Acquisition costs | 72,552,146 | 0 | 86,959 | 44,343 | 72,683,448 |
Depreciation costs | 728,991 | 135,045 | 322,991 | 16,437,887 | 17,624,914 |
Depreciation costs of leased assets | 728,991 | 135,045 | 322,991 | 265,121 | 1,452,148 |
Depreciation costs of other operating assets | 0 | 0 | 0 | 16,172,766 | 16,172,766 |
Labour costs | 70,805,120 | 17,039,668 | 41,158,589 | 8,131,010 | 137,134,387 |
Wages and salaries | 51,836,542 | 11,986,372 | 26,533,061 | 5,690,503 | 96,046,478 |
Social and pension insurance costs | 8,779,257 | 2,049,518 | 4,542,987 | 999,031 | 16,370,792 |
Other labour costs | 10,189,321 | 3,003,778 | 10,082,541 | 1,441,476 | 24,717,117 |
Costs of services | 16,003,065 | 3,776,827 | 19,685,070 | 19,354,013 | 58,818,975 |
Costs of entertainment, advertising and trade shows | 2,859,876 | 143 | 6,341 | 8,661,576 | 11,527,936 |
Maintenance costs | 3,182,062 | 969,250 | 6,933,220 | 687,991 | 11,772,523 |
Costs of materials and energy | 1,869,151 | 613,609 | 841,632 | 343,050 | 3,667,441 |
Costs of payment transactions and banking services | 363,970 | -607 | 1,003,914 | 31,610 | 1,398,887 |
Insurance premium costs | 1,209 | 270 | 159,419 | 718,477 | 879,375 |
Costs of intellectual services | 150,772 | 76,753 | 494,698 | 4,276,052 | 4,998,275 |
Training costs | 313,904 | 95,838 | 368,059 | 205,586 | 983,386 |
Expenses for short-term leases, low-value leases and other leases | 1,452,164 | 532,156 | 4,622,461 | 452,518 | 7,059,300 |
Costs of transport and communications services | 2,048,158 | 372,808 | 1,154,606 | 167,681 | 3,743,253 |
Reimbursement of labour-related costs | 2,336,996 | 86,946 | 488,703 | 324,129 | 3,236,774 |
Costs of services provided by natural persons other than sole proprietors | 134,564 | 374,462 | 208,327 | 47,942 | 765,295 |
Other costs of services | 1,290,239 | 655,200 | 3,403,689 | 3,437,400 | 8,786,529 |
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES | 0 | 6,334,266 | 21,802,785 | 0 | 28,137,051 |
CHANGE IN DEFERRED ACQUISITION COSTS | -18,183,073 | 0 | 0 | 0 | -18,183,073 |
Total expenses from continuing operations | 141,906,249 | 27,285,806 | 83,056,394 | 43,967,252 | 296,215,701 |
Expenses from discontinued operations | -38,105 | -7,813 | -894,984 | -236,860 | -1,177,761 |
TOTAL | 141,868,145 | 27,277,993 | 82,161,410 | 43,730,393 | 295,037,940 |
399
in EUR | |||||
2023 | Attributable acquisition costs | Attributable claim handling expenses | Attributable administrative costs | Non-attributable expenses | TOTAL |
OPERATING EXPENSES | 145,759,077 | 22,300,740 | 63,059,850 | 41,688,160 | 272,807,828 |
Acquisition costs | 58,537,921 | 0 | 0 | 24,721 | 58,562,642 |
Depreciation costs | 690,797 | 134,450 | 301,196 | 16,026,566 | 17,153,009 |
Depreciation costs of leased assets | 690,797 | 134,450 | 301,196 | 1,082,915 | 2,209,358 |
Depreciation costs of other operating assets | 0 | 0 | 0 | 14,943,651 | 14,943,651 |
Labour costs | 70,053,941 | 18,131,766 | 41,064,340 | 8,109,019 | 137,359,065 |
Wages and salaries | 50,475,155 | 12,515,837 | 26,970,188 | 5,619,542 | 95,580,722 |
Social and pension insurance costs | 8,556,185 | 2,139,337 | 4,513,084 | 981,538 | 16,190,145 |
Other labour costs | 11,022,601 | 3,476,591 | 9,581,068 | 1,507,938 | 25,588,198 |
Costs of services | 16,476,419 | 4,034,525 | 21,694,314 | 17,527,854 | 59,733,112 |
Costs of entertainment, advertising and trade shows | 3,220,472 | 231 | 15,143 | 7,564,559 | 10,800,405 |
Maintenance costs | 3,194,786 | 984,778 | 7,564,086 | 541,176 | 12,284,826 |
Costs of materials and energy | 2,150,167 | 723,522 | 1,063,296 | 378,742 | 4,315,727 |
Costs of payment transactions and banking services | 471,252 | 7,775 | 1,200,050 | 20,151 | 1,699,227 |
Insurance premium costs | 1,057 | 734 | 208,365 | 1,006,081 | 1,216,238 |
Costs of intellectual services | 94,565 | 44,721 | 450,209 | 3,633,620 | 4,223,115 |
Training costs | 313,850 | 127,053 | 435,181 | 187,254 | 1,063,338 |
Expenses for short-term leases, low-value leases and other leases | 1,150,809 | 642,242 | 4,244,303 | 455,813 | 6,493,167 |
Costs of transport and communications services | 1,950,947 | 428,198 | 2,166,345 | 137,250 | 4,682,740 |
Reimbursement of labour-related costs | 2,584,457 | 91,388 | 462,284 | 287,061 | 3,425,190 |
Costs of services provided by natural persons other than sole proprietors | 71,709 | 387,969 | 269,153 | 141,840 | 870,671 |
Other costs of services | 1,272,348 | 595,913 | 3,615,901 | 3,174,307 | 8,658,468 |
OTHER ATTRIBUTABLE INSURANCE SERVICE EXPENSES | 0 | 2,817,346 | 19,338,880 | 7,170 | 22,163,397 |
CHANGE IN DEFERRED ACQUISITION COSTS | -9,689,300 | 0 | 0 | 0 | -9,689,300 |
Total expenses from continuing operations | 136,069,777 | 25,118,086 | 82,398,730 | 41,695,330 | 285,281,925 |
Expenses from discontinued operations | -884,790 | -101,233 | -12,441,022 | -2,043,895 | -15,470,939 |
TOTAL | 135,184,988 | 25,016,853 | 69,957,708 | 39,651,435 | 269,810,985 |
In addition to costs of salaries, the Company set aside provisions for employee bonuses, In addition to employees' salaries, contributions charged to
400
3.7
Notes to other significant items in the financial statements
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 Jan 2023 | 11,435,909 | 125,749,573 | 69,989,866 | 627,117 | 207,802,465 |
Transfer in 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 De 2023 = 1 Jan 2024 | 11,540,798 | 124,155,607 | 71,143,970 | 1,352,876 | 208,193,251 |
Transfer to use | 0 | 390,192 | 1,397,540 | -1,787,732 | 0 |
Acquisitions | 0 | 490,290 | 5,248,599 | 4,364,647 | 10,103,536 |
Disposals | -13,542 | -649,237 | -1,963,715 | 0 | -2,626,494 |
Write-offs | 0 | 0 | -3,773,099 | 0 | -3,773,099 |
Other changes | -132,430 | -4,676,278 | 106,240 | 391,496 | -4,310,972 |
As at 31 Dec 2024 | 11,394,826 | 119,710,574 | 72,159,535 | 4,321,287 | 207,586,222 |
ACCUMULATED DEPRECIATION | |||||
As at 1 Jan 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 Dece 2023 = 1 Jan 2024 | 0 | -47,376,694 | -53,987,748 | 0 | -101,364,442 |
Depreciation | 0 | -2,438,234 | -5,312,677 | 0 | -7,750,911 |
Disposals | 0 | 257,991 | 1,795,561 | 0 | 2,053,552 |
Write-offs | 0 | 5,094 | 3,625,658 | 0 | 3,630,752 |
Other changes | 0 | 1,651,687 | 60,330 | 0 | 1,712,017 |
As at 31 Dec 2024 | 0 | -47,900,156 | -53,818,876 | 0 | -101,719,032 |
CARRYING AMOUNT | |||||
As at 1 January 2023 | 11,435,909 | 80,132,654 | 17,670,156 | 627,117 | 109,865,836 |
As at 31 December 2023 = 1 January 2024 | 11,540,798 | 76,778,913 | 17,156,222 | 1,352,876 | 106,828,809 |
As at 31 December 2024 | 11,394,826 | 71,810,418 | 18,340,659 | 4,321,287 | 105,867,185 |
Other changes mainly relate to the transfer of property, plant and equipment to investment
property.
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%.
Depreciation rates did not change in 2024 compared to the previous year.
Cost of fully depreciated assets still in use represents 18% of total cost of all assets used (31
December 2023: 18.12%).
401
In 2024, 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 122,471 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 Jan 2023 | 6,076,598 | 85,165,692 | 46,558,506 | 410,704 | 138,211,500 |
Transfer to use | 0 | 503,021 | 838,567 | -1,341,588 | 0 |
Acquisitions | 10,506 | 194,514 | 2,743,731 | 2,124,266 | 5,073,017 |
Disposals | 0 | -777,960 | -209,816 | 0 | -987,776 |
Write-offs | 0 | 0 | -2,699,880 | 0 | -2,699,880 |
Other changes | -201,054 | -1,112,976 | 0 | -197,035 | -1,511,065 |
As at 31 Dec 2023 = 1 Jan 2024 | 5,886,050 | 83,972,291 | 47,231,109 | 996,347 | 138,085,797 |
Transfer to use | 0 | 149,430 | 895,973 | -1,045,403 | 0 |
Acquisitions | 0 | 329,349 | 3,748,048 | 361,098 | 4,438,495 |
Disposals | -13,542 | -406,445 | -241,032 | 0 | -661,019 |
Write-offs | 0 | 0 | -3,390,366 | 0 | -3,390,366 |
Other changes | -117,683 | -3,263,272 | 0 | 0 | -3,380,955 |
As at 31 Dec 2024 | 5,754,826 | 80,781,353 | 48,243,732 | 312,042 | 135,091,953 |
ACCUMULATED DEPRECIATION | |||||
As at 1 Jan 2023 | 0 | -32,126,143 | -35,164,997 | 0 | -67,291,140 |
Depreciation | 0 | -1,446,995 | -3,926,834 | 0 | -5,373,829 |
Disposals | 0 | 213,411 | 172,491 | 0 | 385,902 |
Write-offs | 0 | 0 | 2,669,282 | 0 | 2,669,282 |
Other changes | 0 | 377,096 | 0 | 0 | 377,096 |
As at 31 Dec 2023 = 1 Jan 2024 | 0 | -32,982,631 | -36,250,059 | 0 | -69,232,690 |
Depreciation | 0 | -1,432,859 | -3,604,463 | 0 | -5,037,322 |
Disposals | 0 | 138,142 | 227,778 | 0 | 365,919 |
Write-offs | 0 | 0 | 3,378,724 | 0 | 3,378,724 |
Other changes | 0 | 1,493,929 | 0 | 0 | 1,493,929 |
As at 31 Dec2024 | 0 | -32,783,420 | -36,248,020 | 0 | -69,031,439 |
CARRYING AMOUNT | |||||
As at 1 January 2023 | 6,076,598 | 53,039,549 | 11,393,509 | 410,704 | 70,920,360 |
As at 31 December 2023 = 1 January 2024 | 5,886,050 | 50,989,660 | 10,981,050 | 996,347 | 68,853,107 |
As at 31 December 2024 | 5,754,826 | 47,997,933 | 11,995,712 | 312,043 | 66,060,514 |
Other changes mainly relate to the transfer of property, plant and equipment to investment
property.
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%,
Depreciation rates did not change in 2024 compared to the previous year.
Cost of fully depreciated assets still in use represents 20.42% of total cost of all assets used (31
December 2023: 19.98%).
In 2024, the Company assessed the existence of possible signs of impairment of land, buildings
and equipment. No signs of impairment were identified.
402
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 2024 by an external certified real estate valuer in accordance with the guidelines
described in Section 2.5.10. When preparing the financial statements as at 31 December 2024,
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 8% 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 0.22% risk-free rate of return in real terms, taking into account the yield on a 10-
year Slovenian government bond of 2.22% and the European Central Bank's long-term
inflation target of 2.0%;
▪
the real estate risk premium of 5.0–7.0%;
▪
the capital retention premium of 1.56% (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 7.75% 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 0.00–6.78%, taking into account the yield on a 10-year
German government bond (2.13%), the country risk premium (2.33–7.94%) and the
current and projected inflation rate for the country in which real property is located;
▪
the real estate risk premium of 6.25%;
▪
the capital retention premium of 0.13–1.67% (in the case of an estimated age of office
property of 60 years).
403
Investment property
Movement in investment property of the Triglav Group
in EUR | ||||
| Land | Buildings | Property in acquisition | TOTAL | |
COST | ||||
As at 1 Jan 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 Dec 2023 = 1 Jan 2024 | 7,836,641 | 66,477,335 | 12,007,618 | 86,321,594 |
Transfer to use | 0 | 3,322,870 | -3,322,870 | 0 |
Acquisitions | 0 | 268,794 | 2,376,031 | 2,644,825 |
Disposals | -73,971 | -2,920,457 | 0 | -2,994,428 |
Other changes | 121,425 | 4,903,349 | -199 | 5,024,577 |
As at 31 Dec 2024 | 7,884,097 | 72,051,891 | 11,060,580 | 90,996,568 |
ACCUMULATED DEPRECIATION | ||||
As at 1 Jan 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 Dec 2023 = 1 Jan 2024 | 0 | -18,367,821 | 0 | -18,367,821 |
Depreciation | 0 | -1,561,960 | 0 | -1,561,960 |
Disposals | 0 | 1,006,662 | 0 | 1,006,662 |
Other changes | 0 | -1,662,079 | 0 | -1,662,079 |
As at 31 Dec 2024 | 0 | -20,585,198 | 0 | -20,585,198 |
CARRYING AMOUNT | ||||
As at 1 January 2023 | 7,938,934 | 48,386,282 | 12,000,271 | 68,325,487 |
As at 31 December 2023 = 1 January 2024 | 7,836,641 | 48,109,514 | 12,007,618 | 67,953,773 |
As at 31 December 2024 | 7,884,097 | 51,466,693 | 11,060,580 | 70,411,373 |
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 depreciation rates used for investment property range between 1.5% and 5%. Depreciation
rates did not change in 2024 compared to the previous year.
In 2024, the Group assessed the existence of possible signs of impairment of investment
property. No signs of impairment were identified.
404
Movement in investment property of Zavarovalnica Triglav
in EUR | ||||
| Land | Buildings | Property in acquisition | TOTAL | |
COST | ||||
As at 1 Jan 2023 | 3,513,228 | 39,708,804 | 11,929,734 | 55,151,766 |
Transfer to use | 0 | 1,405,389 | -1,405,389 | 0 |
Acquisitions | 0 | 183,744 | 1,439,138 | 1,622,883 |
Disposals | -102,108 | -986,853 | 0 | -1,088,961 |
Other changes | -185 | -227,670 | 0 | -227,855 |
As at 31 Dec 2023 = 1 Jan 2024 | 3,410,935 | 40,083,414 | 11,963,484 | 55,457,833 |
Transfer to use | 0 | 2,947,189 | -2,947,189 | 0 |
Acquisitions | 0 | 267,735 | 1,747,843 | 2,015,578 |
Disposals | -73,971 | -2,238,829 | 0 | -2,312,800 |
Other changes | 117,683 | 3,263,272 | 0 | 3,380,955 |
As at 31 Dec 2024 | 3,454,647 | 44,322,781 | 10,764,138 | 58,541,567 |
ACCUMULATED DEPRECIATION | ||||
As at 1 Jan 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 | 2,873 | 0 | 2,873 |
As at 31 Dec 2023 = 1 Jan 2024 | 0 | -12,030,652 | 0 | -12,030,652 |
Depreciation | 0 | -1,026,420 | 0 | -1,026,420 |
Disposals | 0 | 980,578 | 0 | 980,578 |
Other changes | 0 | -1,493,929 | 0 | -1,493,929 |
As at 31 Dec 2024 | 0 | -13,570,422 | 0 | -13,570,422 |
CARRYING AMOUNT | ||||
As at 1 January 2023 | 3,513,228 | 27,934,210 | 11,929,734 | 43,377,172 |
As at 31 December 2023 = 1 January 2024 | 3,410,935 | 28,052,761 | 11,963,484 | 43,427,181 |
As at 31 December 2024 | 3,454,647 | 30,752,359 | 10,764,138 | 44,971,145 |
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 depreciation rates used for investment property range between 1.5% and 5% and did not
change in 2024 compared to the previous year.
In 2024, the Company assessed the existence of possible signs of impairment of investment
property. No signs of impairment were identified.
405
Determining the fair value of the Group's and the Company's investment property
The fair value of real property was determined based on valuations performed as at 30
September 2024 by an external certified real estate valuer in accordance with the guidelines
described in Section 2.5.10. When preparing the financial statements as at 31 December 2024,
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 8% 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 0.22% risk-free rate of return in real terms, taking into account the yield on a 10-
year Slovenian government bond of 2.22% and the European Central Bank's long-term
inflation target of 2.0%;
▪
the real estate risk premium of 5.0–7.0%;
▪
the capital retention premium of 1.56% (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 7.75% 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 0.00–6.78%, taking into account the yield on a 10-year
German government bond (2.13%), the country risk premium (2.33–7.94%) and the
current and projected inflation rate for the country in which real property is located;
▪
the real estate risk premium of 6.25%;
▪
the capital retention premium of 0.13–1.67% (in the case of an estimated age of office
property of 60 years)
The fair values of the Group's and the Company's investment property exceed their carrying
amounts
and is presented in section 4.1.1.
406
Investment property income and expenses of the Group and the Company
The Group and the Company lease (operational lease) its investment properties, i.e. individual
business premises. All operating leases can be cancelled and are concluded for an initial term of
one to ten years or for an indefinite term. Leases do not include contingent rents (variable lease
payments).
There were no significant modifications or terminations of lease contracts in 2024,
As at 31
December 2024, 80.78% of all investment properties of the Group (31 December 2023: 74.26%)
and 76% of all investment properties of the Company (31 December 2023: 72.47%) were leased.
All income from investment property relates exclusively to leases and operating expenses
attributable to the lessee and is disclosed in profit or loss under the item net other operating
income and expenses.
Expenses from investment property relate to depreciation, maintenance costs and other
expenses of investment property and are disclosed in profit or loss under the item net other
operating income and expenses.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Lease income | 5,760,539 | 7,441,236 | 6,479,919 | 6,195,418 |
Depreciation of investment property | -1,561,960 | -1,434,129 | -1,026,420 | -972,822 |
Maintenance costs and other expenses related to income- generating real property | -2,603,653 | -2,349,341 | -3,372,853 | -2,945,673 |
Maintenance costs and other expenses related to non- income-generating real property | -29,004 | -81,176 | -27,602 | -75,372 |
Expected undiscounted cash flows from concluded lease contracts
Based on the contractual provisions effective at the balance sheet date, the Group and the
Company expect cash flows in the coming years as presented below. Expected cash flows are
calculated based on the term of valid lease contracts. Contracts concluded without a term were
assumed to last for five years.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Expected lease payments in year 1 | 4,676,803 | 5,999,327 | 4,282,320 | 3,559,799 |
Expected lease payments in year 2 | 4,268,377 | 4,324,247 | 3,923,016 | 3,137,038 |
Expected lease payments in year 3 | 1,269,710 | 3,894,731 | 1,037,933 | 2,893,114 |
Expected lease payments in year 4 | 1,045,774 | 858,445 | 1,002,435 | 199,854 |
Expected lease payments in year 5 | 420,221 | 626,503 | 398,902 | 197,574 |
Expected lease payments later than 5 years | 275,421 | 414,745 | 275,421 | 76,375 |
TOTAL | 11,956,306 | 16,117,998 | 10,920,027 | 10,063,754 |
Right-of-use assets
The Group and the Company lease business premises, vehicles and other equipment used in their
operations. Leases for business premises are mostly concluded for an indefinite term, and leases
for vehicles and other equipment for one to five years.
407
The Group and the Company also entered into short-term leases and leases of low-value
equipment. Permitted exceptions to recognition apply to these leases.
Movement in right-of-use assets of the Triglav Group
in EUR | ||||
Land and buildings | Vehicles | Other equipment | TOTAL | |
As at 1 Jan 2023 | 12,402,745 | 2,183,774 | 58,493 | 14,645,012 |
New leases | 3,150,111 | 1,941,607 | 20,954 | 5,112,672 |
Lease termination | -1,110,757 | -801,698 | -12,016 | -1,924,471 |
Lease modification | 2,536,837 | 662,404 | 0 | 3,199,241 |
Change in estimates of future cash flows | -276,350 | 20,161 | 0 | -256,189 |
Depreciation of right-of-use assets | -4,059,700 | -1,005,825 | -36,190 | -5,101,715 |
Exchange rate differences and other changes | -2,539 | -839 | -13 | -3,391 |
As at 31 Dec 2023 = 1 Jan 2024 | 12,640,347 | 2,999,584 | 31,228 | 15,671,159 |
Elimination of intercompany transactions | -4,557,710 | 0 | 0 | -4,557,710 |
TOTAL | 8,082,637 | 2,999,584 | 31,228 | 11,113,449 |
New leases | 2,695,609 | 923,317 | 0 | 3,618,926 |
Lease termination | -1,512,412 | -156,289 | -674 | -1,669,375 |
Lease modification | 756,463 | 13,107 | 0 | 769,570 |
Change in estimates of future cash flows | 41,636 | 0 | 0 | 41,636 |
Depreciation of right-of-use assets | -3,732,035 | -998,792 | -17,120 | -4,747,947 |
Exchange rate differences and other changes | 403,861 | 1,151 | -213 | 404,799 |
As at 31 Dec 2024 | 11,293,469 | 2,782,078 | 13,221 | 14,088,768 |
Elimination of intercompany transactions | -4,037,026 | 0 | 0 | -4,037,026 |
TOTAL | 7,256,443 | 2,782,078 | 13,221 | 10,051,742 |
Movement in right-of-use assets of Zavarovalnica Triglav
in EUR | ||||
Land and buildings | Vehicles | Other equipment | TOTAL | |
As at 1 Jan 2023 | 2,968,766 | 1,363,534 | 36,710 | 4,369,010 |
New leases | 171,273 | 1,385,405 | 0 | 1,556,678 |
Lease termination | -91,670 | -151,781 | 0 | -243,451 |
Lease modification | 696,206 | 17,413 | 0 | 713,619 |
Depreciation of right-of-use assets | -988,674 | -581,714 | -12,084 | -1,582,472 |
As at 31 Dec 2023 = 1 Jan 2024 | 2,755,901 | 2,032,857 | 24,626 | 4,813,384 |
New leases | 380,333 | 923,317 | 0 | 1,303,650 |
Lease termination | -614,405 | -55,048 | -674 | -670,127 |
Lease modification | 153,581 | 13,718 | 0 | 167,299 |
Depreciation of right-of-use assets | -800,500 | -683,506 | -11,152 | -1,495,157 |
As at 31 Dec 2024 | 1,874,911 | 2,231,338 | 12,800 | 4,119,049 |
408
Lease liabilities
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec2024 | 31 Dec2023 | |
Right of use assets | 10,051,743 | 11,113,449 | 4,119,049 | 4,813,384 |
Lease financial liabilities | -10,656,690 | -11,665,332 | -4,302,797 | -5,033,767 |
To calculate the net present value of future cash flows from leases, discount rates were used
that were determined at the level of the interest rate for risk-free government bonds, increased
by the credit spread of an individual Group member. When valuing assets and liabilities from
contracts concluded for an indefinite term, there were no changes in the estimated term of
contracts in 2024.
The table below shows the maturity of expected discounted cash flows by year.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Expected cash flows in less than 1 year | 4,685,461 | 4,539,979 | 1,354,334 | 1,504,315 |
Expected cash flows in 1–2 years | 4,073,033 | 4,431,734 | 1,141,041 | 1,394,461 |
Expected cash flows in 2–3 years | 2,599,120 | 3,126,865 | 712,295 | 931,401 |
Expected cash flows in 3–4 years | 1,619,640 | 2,277,307 | 439,744 | 485,991 |
Expected cash flows in 4–5 years | 519,451 | 859,384 | 185,434 | 228,514 |
Expected cash flows over 5 years | 1,092,349 | 1,153,420 | 469,948 | 489,085 |
Lease liabilities | 14,589,054 | 16,388,689 | 4,302,797 | 5,033,767 |
Elimination of intercompany transactions | -3,932,364 | -4,723,356 | 0 | 0 |
TOTAL | 10,656,690 | 11,665,333 | 4,302,797 | 5,033,767 |
The maturity of expected undiscounted cash flows by year is shown below.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Expected cash flows in less than 1 year | 5,795,676 | 5,564,080 | 1,483,863 | 1,379,134 |
Expected cash flows in 1–2 years | 4,723,260 | 5,028,385 | 1,238,372 | 1,257,926 |
Expected cash flows in 2–3 years | 2,843,942 | 3,878,895 | 770,385 | 990,223 |
Expected cash flows in 3–4 years | 1,645,050 | 2,440,864 | 471,817 | 521,975 |
Expected cash flows in 4–5 years | 619,246 | 945,515 | 204,409 | 283,194 |
Expected cash flows over 5 years | 984,992 | 1,619,749 | 512,258 | 539,490 |
Total expected undiscounted cash flows | 16,612,166 | 19,477,488 | 4,681,104 | 4,971,942 |
The Group's and the Company's expenses related to leased assets and payments related to rights-
of-use assets
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Expenses related to right-of-use assets | -5,656,419 | -6,129,451 | -1,681,201 | -1,747,406 |
Depreciation/amortisation costs of leased assets | -4,747,947 | -5,101,715 | -1,495,157 | -1,582,472 |
Interest expenses from leased assets | -876,391 | -901,232 | -186,044 | -164,934 |
Other expenses from leased assets | -32,081 | -126,504 | 0 | 0 |
Other lease-related costs and expenses | -2,175,372 | -1,482,855 | -522,140 | -511,481 |
Expenses for short-term leases | -1,501,435 | -806,975 | -89,628 | -54,048 |
Expenses for low-value leases | -507,042 | -525,068 | -432,512 | -457,433 |
Expenses related to variable lease payments | -166,895 | -150,812 | 0 | 0 |
Payments for right-of-use assets in the year | 5,925,802 | 5,878,787 | 1,638,165 | 1,652,992 |
409
Intangible assets and goodwill
Movement in intangible assets of the Triglav Group
in EUR | |||||
| Goodwill | Licenses and software | Intangible assets in acquisition | Long-term deferred items | TOTAL | |
COST | |||||
As at 1 Jan 2023 | 10,413,312 | 105,811,073 | 7,347,894 | 244,184 | 123,816,463 |
Transfer to use | 0 | 2,147,073 | -2,147,073 | 0 | 0 |
Acquisitions and other increases | 0 | 8,210,238 | 5,710,237 | 0 | 13,920,475 |
Disposals | 0 | -394,177 | 0 | 0 | -394,177 |
Other changes | 0 | -1,795,702 | -8,795 | -85,824 | -1,890,321 |
As at 31 Dec 2023 = 1 Jan 2024 | 10,413,312 | 113,978,505 | 10,902,263 | 158,360 | 135,452,440 |
Transfer to use | 0 | 10,995,800 | -10,995,800 | 0 | 0 |
Acquisitions and other increases | 0 | 7,032,874 | 5,706,589 | 0 | 12,739,463 |
Disposals | 0 | -3,535,036 | 0 | 0 | -3,535,036 |
Other changes | 0 | -876,828 | 47,281 | 109,050 | -720,497 |
As at 31 Dec 2024 | 10,413,312 | 127,595,315 | 5,660,333 | 267,410 | 143,936,370 |
ACCUMULATED DEPRECIATION | |||||
As at 1 Jan 2023 | 0 | -70,096,204 | 0 | 0 | -70,096,204 |
Depreciation | 0 | -11,696,494 | 0 | 0 | -11,696,494 |
Disposals | 0 | 367,575 | 0 | 0 | 367,575 |
Other changes | 0 | 628,989 | 0 | 0 | 628,989 |
As at 31 Dec 2023 = 1 Jan 2024 | 0 | -80,796,134 | 0 | 0 | -80,796,134 |
Depreciation | 0 | -13,299,686 | 0 | 0 | -13,299,686 |
Disposals | 0 | 3,534,563 | 0 | 0 | 3,534,563 |
Other changes | 0 | -13,205 | 0 | 0 | -13,205 |
As aat 31 Dec 2024 | 0 | -90,574,462 | 0 | 0 | -90,574,462 |
CARRYING AMOUNT | |||||
As at 1 January 2023 | 10,413,312 | 35,714,869 | 7,347,894 | 244,184 | 53,720,259 |
As at 31 December 2023 | 10,413,312 | 33,182,371 | 10,902,263 | 158,360 | 54,656,306 |
As at 31 December 2024 | 10,413,312 | 37,020,853 | 5,660,333 | 267,410 | 53,361,912 |
Goodwill
Goodwill arises from the merger of Alta Skladi, d.d., to Triglav Skladi, družba za upravljanje, d.o.o.
in 2019.
Triglav Skladi d.o.o. recognised goodwill of EUR 10.4 million on the merger of Alta Funds, d.d.,
arising from the excess of the purchase consideration over the net asset value of the assets
acquired. The goodwill is allocated to the cash-generating unit (CGU) and represents the
expected future economic benefits from the synergies of the merger.
The value of goodwill is reviewed annually in accordance with IAS 36. The impairment test is
based on a recoverable amount estimate, which is the higher of fair value less costs to sell and
value in use. On 30 September 2023, a certified business valuer assessed the value in use and
concluded that the assessed CGU (the cash-generating unit being the entity as a whole, i.e.
Triglav Skladi) exceeds the carrying amount of Triglav Skladi's total equity. The following
assumptions were used to calculate the value in use:
▪
Cash flow projections for the period from 1 October 2023 to 31 December 2031,
▪
A discount rate of 12.2%,
▪
A residual value estimate of 2%.
The cash flow estimates are based on projections approved by both the Management Board and
the Supervisory Board. These projections rely on past operating results and expectations of
future business growth. A discount rate reflecting capital market expectations at 30 September
2023, as well as asset-specific risks until 2031, was applied. Long-term macroeconomic forecasts
410
were also incorporated into the risk assessment. Reasonable changes in assumptions, such as an
increase in the discount rate or lower income growth, could affect the need for impairment. As
at 30 September 2023, the CGU's estimated value in use was EUR 109.5 million, significantly
higher than the net assets' carrying amount.
Because the value in use exceeds the asset's carrying amount, it is not necessary to assess fair
value less costs to sell in accordance with IAS 36.
As at 31 December 2024, the key assumptions used in the 30 September 2024 cash-generating
unit value assessment were rechecked. The key assumptions include growth in the carrying
amount of the company's share capital, an increase in assets under management and long-term
financial investments, outperformance of income and profit forecasts in 2024, and a reduction
in the discount rate due to a lower risk-free rate of return.
Based on an analysis of business
events and changes in circumstances since the last recoverable amount calculation, it is unlikely
that the present recoverable amount of this asset would be less than its carrying amount.
Other intangible assets
Under other intangible assets, the Group has no intangible assets pledged as collateral for
liabilities. It also has no financial liabilities related to the purchase of intangible assets.
Intangible assets owned by the Group were not obtained with state support.
The depreciation rate used for software is 20%, and for other material rights it ranges between
1% and 20%. Depreciation rates did not change in 2024.
The Group has no intangible assets that are individually significant for the consolidated financial
statements.
In 2024, the Group assessed the existence of possible signs of impairment of other intangible
411
Movement in intangible assets of Zavarovalnica Triglav
in EUR | ||||
Licenses and software | Intangible assets in acquisition | Long-term deferred items | TOTAL | |
COST | ||||
As at 1 Jan 2023 | 81,726,305 | 4,737,581 | 158,422 | 86,622,308 |
Transfer to use | 1,412,609 | -1,412,609 | 0 | 0 |
Acquisitions and other increases | 7,477,216 | 2,720,716 | 0 | 10,197,933 |
Disposals | -235,561 | 0 | 0 | -235,561 |
Other changes | 0 | 0 | -86,017 | -86,017 |
As at 31 Dec 2023 = 1 Jan 2024 | 90,380,570 | 6,045,689 | 72,405 | 96,498,664 |
Transfer to use | 2,936,658 | -2,936,658 | 0 | 0 |
Acquisitions and other increases | 6,590,723 | 1,927,703 | 0 | 8,518,426 |
Disposals | -3,392,812 | 0 | 0 | -3,392,812 |
Other changes | 0 | 0 | 156,456 | 156,456 |
As at 31 Dec 2024 | 96,515,139 | 5,036,734 | 228,861 | 101,780,733 |
ACCUMULATED DEPRECIATION | ||||
As at 1 Jan 2023 | -55,326,588 | 0 | 0 | -55,326,588 |
Depreciation | -10,368,357 | 0 | 0 | -10,368,357 |
Disposals | 235,561 | 0 | 0 | 235,561 |
As at 31 Dec 2023 = 1 Jan 2024 | -65,459,385 | 0 | 0 | -65,459,385 |
Depreciation | -11,262,366 | 0 | 0 | -11,262,366 |
Disposals | 3,392,339 | 0 | 0 | 3,392,339 |
As at 31 Dec 2024 | -73,329,412 | 0 | 0 | -73,329,412 |
CARRYING AMOUNT | ||||
As at 1 January 2023 | 26,399,717 | 4,737,581 | 158,422 | 31,295,720 |
As at 31 December 2023 | 24,921,185 | 6,045,689 | 72,405 | 31,039,279 |
As at 31 December 2024 | 23,185,727 | 5,036,734 | 228,861 | 28,451,322 |
The Company has no intangible assets pledged as collateral for liabilities. The Company also has
no financial liabilities related to the purchase of intangible assets. Intangible assets owned by
the Company were not obtained with state support.
The depreciation rate used for software is 20%, and for other material rights it ranges between
1% and 20%. Depreciation rates did not change in 2024.
The Company has no intangible assets that are individually significant for the financial
statements.
Cost of fully depreciated property, plant and equipment still in use represents 35.25% of total
cost of property, plant and equipment used by the Company (31 December 2023: 17.55%).
In 2024, the Company assessed the existence of possible signs of impairment of other intangible
assets. No signs of impairment were identified.
412
Deferred tax assets and liabilities
Effects of financial income and expenses from insurance contracts of the Triglav Group
in EUR | ||
31 Dec 2024 | 31 Dec 2023 | |
Deferred tax assets | 14,239,505 | 21,967,548 |
Deferred assets from determining the fair value of debt instruments at FVOCI | 19,123,784 | 24,989,603 |
Deferred assets from determining the fair value of equity instruments at FVOCI | 870,115 | 926,989 |
Deferred assets from the impairment of financial instruments | 4,025,942 | 4,713,262 |
Deferred assets from the impairment of receivables | 167,355 | 210,901 |
Deferred assets from impairment of land and buildings | 320,428 | 327,683 |
Deferred assets from the calculation of employee benefits | 1,731,389 | 1,707,895 |
Deferred assets from insurance contracts | 123,338 | 7,262 |
Deferred assets from reinsurance contracts | 75,996 | 423,347 |
Deferred assets from using various depreciation rates | 137,707 | 118,289 |
Deferred assets from other items | 1,060,864 | 1,132,225 |
Deferred assets from unused tax losses | 703,486 | 6,443,736 |
Netting of deferred tax | -14,100,899 | -19,033,644 |
Deferred tax liabilities | 2,212,405 | 1,865,810 |
Deferred insurance contract liabilities | 12,255,043 | 17,551,404 |
Deferred tax liabilities from reinsurance contracts | 188,684 | 0 |
Deferred liabilities from the transition to the new standard | 0 | 48 |
Deferred liabilities from determining the fair value of debt instruments at FVOCI | 238,019 | 92,512 |
Deferred liabilities from determining the fair value of equity instruments at FVOCI | 87,891 | 87,886 |
Deferred liabilities from using various depreciation rates | 706,667 | 700,015 |
Deferred liabilities from other items | 2,837,000 | 2,467,589 |
Netting of deferred tax | -14,100,899 | -19,033,644 |
TOTAL | 12,027,100 | 20,101,738 |
Deferred tax assets and liabilities are calculated at the tax rate expected to apply at the time of
their reversal.
Effects of financial income and expenses from insurance contracts of Zavarovalnica Triglav
in EUR | ||
31 Dec 2024 | 31 Dec 2023 | |
Deferred tax assets | 12.796.824 | 19.166.719 |
Deferred assets from determining the fair value of debt securities at FVOCI | 17.755.432 | 21.908.737 |
Deferred assets from determining the fair value of equity securities at FVOCI | 870.115 | 926.989 |
Deferred assets from the impairment of financial instruments | 3.452.775 | 3.926.582 |
Deferred assets from the impairment of receivables | 0 | 12.650 |
Deferred assets from impairment of land and buildings | 320.428 | 327.683 |
Deferred assets from the calculation of employee benefits | 1.626.257 | 1.615.037 |
Defferred assets from insurance contracts | 0 | 840 |
Deferred assets from reinsurance contracts | 243 | 179.844 |
Deferred assets from other items | 0 | 5.826.894 |
Netting of deferred tax | -11.228.426 | -15.558.537 |
Deferred tax liabilities | 0 | 0 |
Deferred liabilities from insurance contracts | 11,093,955 | 15,558,495 |
Deferred liabilities from reinsurance contracts | 134,471 | 42 |
Netting of deferred tax | -11,228,426 | -15,558,537 |
TOTAL | 12,796,824 | 19,166,719 |
Zavarovalnica Triglav's deferred tax assets and liabilities as at 31 December 2024 and 31
December 2023 were calculated using a tax rate of 22%.
413
Movement in deferred tax assets and liabilities
in EUR | ||
Triglav Group | Zavarovalnica Triglav | |
Deferred tax assets | ||
As at 1 Jan 2023 | 81,161,818 | 73,225,815 |
Creation recognised in profit or loss | 8,718,018 | 7,480,498 |
Use recognised in profit or loss | -27,533,942 | -27,517,711 |
Release recognised in profit or loss | -10,393,596 | -9,949,209 |
Creation recognised in other comprehensive income | 1,000,759 | 927,830 |
Use recognised in other comprehensive income | -1,268,943 | -1,268,943 |
Release recognised in other comprehensive income | -10,681,468 | -8,173,025 |
Exchange rate differences | -1,457 | 0 |
As at 31 Dec 2023 = 1 Jan 2024 | 41,001,189 | 34,725,255 |
Creation recognised in profit or loss | 1,980,196 | 1,928,303 |
Use recognised in profit or loss | -6,216,962 | -6,214,361 |
Release recognised in profit or loss | -2,425,645 | -2,023,328 |
Creation recognised in other comprehensive income | 3,096,218 | 2,992,480 |
Use recognised in other comprehensive income | -285,351 | -285,351 |
Release recognised in other comprehensive income | -8,813,672 | -7,097,747 |
Exchange rate differences | 4,431 | 0 |
As at 31 Dec 2024 | 28,340,404 | 24,025,251 |
Deferred tax liabilities | ||
As at 1 Jan 2023 | 68,426,616 | 60,190,447 |
Creation recognised in profit or loss | 160,318 | 0 |
Use recognised in profit or loss | -37,802,721 | -37,802,721 |
Release recognised in profit or loss | -1,542,879 | -754,194 |
Creation recognised in other comprehensive income | 67,009 | 42 |
Use recognised in other comprehensive income | -1,281,815 | -1,104,367 |
Release recognised in other comprehensive income | -7,126,183 | -4,970,670 |
Exchange rate differences | -889 | 0 |
As at 31 Dec 2023 = 1 Jan 2024 | 20,899,456 | 15,558,537 |
Creation recognised in profit or loss | 52,668 | 0 |
Release recognised in profit or loss | -205,124 | 0 |
Creation recognised in other comprehensive income | 882,646 | 134,430 |
Release recognised in other comprehensive income | -5,320,104 | -4,464,540 |
Exchange rate differences | 3,762 | 0 |
As at 31 Dec 2024 | 16,313,304 | 11,228,427 |
Offset of deferred tax assets and liabilities
In the Group's and the Company's financial statements, deferred tax assets and liabilities are
offset at the level of the tax jurisdiction, as shown below.
in EUR | ||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||
Tax jurisdiction | Deferred tax assets | Deferred tax liabilities | Total deferred tax | Deferred tax assets | Deferred tax liabilities | Total deferred tax |
Slovenia | 13,869,765 | 275,674 | 13,594,091 | 21,175,326 | 376,288 | 20,799,038 |
Croatia | 1,362,506 | 746,795 | 615,711 | 821,654 | 0 | 821,654 |
Montenegro | 45,465 | 1,354,695 | -1,309,230 | 76,460 | 1,345,139 | -1,268,679 |
Bosnia and Herzegovina | 47,130 | 576,283 | -529,153 | 0 | 597,131 | -597,131 |
North Macedonia | 50,736 | 21,033 | 29,703 | 128,997 | 0 | 128,997 |
Serbia | 0 | 374,022 | -374,022 | 217,859 | 0 | 217,859 |
TOTAL DEFERRED TAX | 15,375,602 | 3,348,502 | 12,027,100 | 22,420,296 | 2,318,558 | 20,101,738 |
Total deferred tax assets | 14,239,505 | 21,967,548 | ||||
Total deferred tax liabilities | 2,212,405 | 1,865,810 | ||||
414
3.7.6
Non-current assets held for sale
Discontinued operations from supplemental health insurance
The Act Amending the Health Care and Health Insurance Act, which entered into force on 20 July
2023, terminated supplemental health insurance within the Slovenian public healthcare system,
effective from 1 January 2024. As of that date, all existing supplemental health insurance
contracts in Slovenia were terminated.
Triglav, Zdravstvena zavarovalnica, which had provided supplemental health insurance until the
termination, was merged into its parent company, Zavarovalnica Triglav, as of 1 October 2024.
Despite the termination, the supplemental health insurance continued to generate income,
expenses and cash flows in 2024. The operating profit from the supplemental health insurance
business was excluded from the operating profit of continuing operations and disclosed
separately in the profit or loss.
The cash flow from the supplemental health insurance business was excluded from the cash
flow of continuing operations and disclosed separately in the cash flow statement.
The following tables present the statement of profit or loss and the cash flow statement for
supplemental health insurance, broken down by item.
in EUR | ||
2024 | 2023 | |
Insurance service result | 5,539,543 | -22,680,223 |
Insurance revenue | 52,453 | 193,275,962 |
Insurance service expenses | 5,487,091 | -215,956,185 |
Investment result | 0 | -2,725,610 |
Interest income calculated using the effective interest method | 0 | 176,237 |
Net gains/losses on financial assets | 0 | -3,031,559 |
Net impairment/reversal of impairment of financial assets | 0 | 128,858 |
Other investment income/expenses | 0 | 853 |
Financial result from insurance contracts | -113,374 | -80,813 |
Net insurance finance income/expenses | -113,374 | -80,813 |
Non-attributable operating expenses | -236,860 | -2,043,895 |
Net other operating income/expenses | -59,651 | 449,475 |
Net other financial income/expenses | -4,030 | -11,357 |
Net other income/expenses | 11,022,074 | -683,446 |
Earnings before tax | 16,147,704 | -27,775,868 |
Tax expense | 0 | 5,503,377 |
Corporate income tax | 3,552,495 | 0 |
Deferred tax income/expenses | -3,552,495 | 5,503,377 |
Net earnings | 16,147,704 | -22,272,491 |
V
in EUR | ||
2024 | 2023 | |
Items that may be reclassified to profit or loss in future periods | -2,979 | 1,545,820 |
Accumulated insurance finance income/expenses | -3,819 | -160,804 |
Effect of debt instruments at FVOCI | 0 | 1,704,633 |
Tax on items that may be reclassified to profit or loss | 840 | 1,991 |
Other comprehensive income after tax from discontinued operations | -2,979 | 1,545,820 |
in EUR | ||
2024 | 2023 | |
Net cash flow from operating activities | -154,963 | -45,474,166 |
Net cash flow from investing activities | 0 | 44,804,675 |
Net cash flow from financing activities | -4,029 | -10,460 |
Net cash flow from discontinued operations | -158,991 | -679,952 |
415
The insurance service result of EUR 5,539,543 relates to the release of insurance contract
liabilities.
Net other insurance revenue relates to the reimbursement of the difference between the costs
paid by Triglav, Zdravstvena zavarovalnica, d.d. to healthcare service providers (taking into
account the equalisation schemes) and the insurance income from supplemental health
insurance during the reference period from June 2023 to December 2023.
Triglav, zdravstvena zavarovalnica submitted a claim for reimbursement of this difference of
EUR 10,996,355 based on the offer from the Ministry of Health. The reimbursement amount is
also shown under received government grants in Section 4.3.
Other non-current assets held for sale
Other non-current assets held for sale comprise land and buildings classified as held for sale in
2024. As at 31 December 2024, these assets amounted to EUR 49,390 at Group level (31
December 2023: EUR 3,129,709).
Other receivables
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Non-attributable receivables from insurance operations | 22,542,433 | 16,333,461 | 21,694,686 | 15,519,561 |
Other receivables | 21,995,767 | 21,310,542 | 6,059,216 | 4,928,937 |
Trade receivables | 10,787,469 | 8,700,903 | 0 | 201 |
Overpayments and prepayments | 2,885,892 | 3,802,918 | 1,561,657 | 2,842,584 |
Other short-term operating receivables | 5,405,549 | 5,745,201 | 3,127,107 | 950,427 |
Receivables from financing | 688,859 | 967,993 | 589,979 | 176,245 |
Other | 2,227,998 | 2,093,527 | 780,473 | 959,481 |
TOTAL | 44,538,200 | 37,644,003 | 27,753,903 | 20,448,498 |
Impairment of non-attributable receivables from insurance operations
Non-attributable receivables from insurance operations are receivables that relate to insurance
business but are not attributable to individual insurance contracts. These are mainly receivables
from points of sale and foreign intermediaries, receivables for card payments, receivables for
overpaid benefits and similar. As at 31 December 2024 and 31 December 2023, the Group and
the Company tested these receivables for impairment, focusing primarily on significant
exposures to foreign intermediaries. No signs of impairment were identified, as the foreign
intermediaries to which the Group and the Company are exposed have very good credit ratings
and do not default on payments.
416
Impairment of other receivables
The table below shows the age structure of receivables and the amount of impairment
allowance.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Not due | 14,082,570 | 13,984,739 | 5,661,044 | 4,604,918 |
Overdue up to 30 days | 1,310,643 | 1,888,968 | 351,908 | 196,640 |
Overdue from 31 to 90 days | 1,165,456 | 1,194,105 | 17,101 | 261,425 |
Overdue from 91 to 180 days | 2,205,068 | 1,579,377 | 1,006,558 | 9,917 |
Overdue over 180 days | 9,259,120 | 8,933,849 | 203,783 | 401,616 |
Total gross receivables | 28,022,857 | 27,581,038 | 7,240,394 | 5,474,516 |
Impairment | -6,027,263 | -6,270,496 | -1,181,178 | -545,579 |
Carrying amount | 21,995,594 | 21,310,542 | 6,059,216 | 4,928,937 |
Cash and cash equivalents
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Cash in bank accounts | 60,583,830 | 76,387,728 | 18,151,064 | 31,891,204 |
Call account | 7,976,292 | 7,570,804 | 0 | 502 |
Cash on hand and other cash | 390,957 | 462,135 | 14,257 | 14,637 |
TOTAL | 68,951,079 | 84,420,667 | 18,165,321 | 31,906,343 |
In the statement of financial position under the item "cash and cash equivalents", cash of the
fund backing unit-linked insurance is disclosed in the amount of EUR 3,263,314 (31 December
2023: EUR 15,158,808) for the Triglav Group and in the amount of EUR 2,968,453 (31 December
Other assets
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Inventories | 514,590 | 521,192 | 215,464 | 182,835 |
Deferred expenses and accrued income | 9,315,572 | 7,712,503 | 3,406,696 | 2,527,974 |
Other assets | 97,650 | 98,206 | 97,466 | 98,022 |
TOTAL | 9,927,812 | 8,331,901 | 3,719,626 | 2,808,831 |
Equity
Zavarovalnica Triglav's share capital
As at 31 December 2024, the Company’s share capital amounted to EUR 73,701,392 (31
December 2023: EUR 73,701,392). It was divided into 22,735,148 ordinary registered no-par
value shares. Each share represents the same stake and corresponding amount in share capital.
The proportion of each no-par value share in the share capital is determined based on the
number of no-par value shares issued. All the shares have been paid up in full.
417
The shares are entered in the KDD register under the ZVTG ticker symbol and are listed on the
Ljubljana Stock Exchange Prime Market. Shareholders have the right to participate in the
management of the company and the right to participate in profit.
As at 31 December 2024, there were 8,218 subscribers of shares in Zavarovalnica Triglav's share
register (31 December 2023: 8,453). The largest subscribers are presented in the table below.
Shareholders of Zavarovalnice Triglav
As at 31 Dec 2024 | Numbers of shares | Share (%) |
Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana | 7,836,628 | 34.47 |
SDH, d.d., Ljubljana | 6,386,644 | 28.09 |
Erste Group Bank PBZ Croatia Osiguranje OMF – fiduciarni račun, Zagreb, Hrvaška | 1,543,798 | 6.79 |
Unicredit Bank Austria – fiduciarni račun, Dunaj, Avstrija | 525,864 | 2.31 |
Citibank – fiduciarni račun, London, Velika Britanija | 428,048 | 1.88 |
Hrvatska poštanska banka – fiduciarni račun, Zagreb, Hrvaška | 232,189 | 1.02 |
Other shareholders (less than 1%) | 5,781,977 | 25.44 |
TOTAL | 22,735,148 | 100.00 |
As at 31 Dec 2023 | Numbers of shares | Share (%) |
Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana | 7,836,628 | 34.47 |
SDH, d.d., Ljubljana | 6,386,644 | 28.09 |
Erste Group Bank PBZ Croatia Osiguranje OMF – fiduciarni račun, Zagreb, Hrvaška | 1,526,190 | 6.71 |
Unicredit Bank Austria – fiduciarni račun, Dunaj, Avstrija | 555,758 | 2.44 |
Citibank – fiduciarni račun, London, Velika Britanija | 469,075 | 2.06 |
Hrvatska poštanska banka – fiduciarni račun, Zagreb, Hrvaška | 232,644 | 1.02 |
Other shareholders (less than 1%) | 5,728,209 | 25.20 |
TOTAL | 22,735,148 | 100.00 |
Share price
v EUR | ||
31 Dec 2024 | 31 Dec 2023 | |
Published share price of Zavarovalnica Triglav on a regulated securities market | 40.50 | 34.70 |
Book value per share of Zavarovalnica Triglav | 32.62 | 30.02 |
Book value per share of the Triglav Group | 43.50 | 39.19 |
The share’s book value is calculated taking into account the Company’s total equity.
On 6 June 2024, the General Meeting of Shareholders of Zavarovalnica Triglav d.d. decided on
the distribution of accumulated profit, totalling EUR 87,854,039 as at 31 December 2023. A part
of the accumulated profit in the amount of EUR 39,786,509 was allocated to dividend payments,
amounting to EUR 1.75 gross per share. The dividends were paid on 19 June 2024. The
distribution of the remaining part of accumulated profit will be decided on in the coming years.
418
in EUR | ||
2024 | 2023 | |
Net profit/loss for the year | 98,231,897 | 38,662,426 |
Net profit brought forward | 48,067,529 | 6,931,409 |
Change in net retained earnings | 36,616 | 11,647,900 |
Increase in net retained earnings due to the merger | 12,094,611 | 0 |
Increase of other reserves from profit based on the decision by the Management and Supervisory Boards | -49,000,000 | -19,000,000 |
Increase in net retained earnings due to the transition to new standards | 0 | 49,612,304 |
ACCUMULATED PROFITS | 109,430,653 | 87,854,039 |
Distribution of accumulated profits | ||
– to shareholders | 39,786,509 | |
– transfer to the following year | 48,067,530 |
Reserves from profit
In addition to legal and treasury share reserves, reserves from profit also comprise other reserves
from profit.
In accordance with the ZGD-1, the Management Board may allocate up to one half of the amount
of the net profit remaining after the appropriation of the profit for the purposes required by law
to create other reserves. In addition to prudent risk management, the creation of these reserves
based on, in particular, the anticipated company’s strategic needs for capital, taking into account
capital sources. When preparing the Annual Report for 2024, the Management Board formed
other reserves from profit in the amount of EUR 49,000,000 (2023: EUR 19,000,000).
Treasury shares reserves and treasury shares (as a deductible item)
The treasury shares include the shares of Zavarovalnica Triglav held by other Group companies
whose financial statements are included in the Group's consolidated financial statements. As at
31 December 2024, Triglav, Upravljanje nepremičnin d.o.o. held 24,312 ZVTG shares worth EUR
364,680 as at the balance sheet date. The balance of treasury shares is unchanged compared to
the preceding year.
In the consolidated financial statements, treasury shares are measured at cost and recognised
as a deductible under equity. For these shares, treasury share reserves are created in the same
amount from net profit brought forward.
Accumulated other comprehensive income
Accumulated other comprehensive income shows changes in the portion of assets and liabilities
arising from insurance contracts that are measured at fair value through other comprehensive
income and changes in the fair value of financial investments classified as measured at fair value
through other comprehensive income.
The amounts of accumulated other comprehensive income are net of the amount of deferred
tax. Changes in accumulated other comprehensive income are shown in more detail in the
statement of other comprehensive income.
Translation differences
Translation differences arise from foreign exchange differences in consolidation procedures. In
2024, translation differences amounted to EUR 119,938 (2023: EUR -20,062). Translation
differences mainly refer to the change in the exchange rate of Serbian dinar.
419
Notes to the statement of changes in equity
The following changes are shown in the Group’s statement of changes in equity for 2024:
▪
increase in capital for net profit of the year in the amount of EUR 130,893,953, of which EUR
524,160 is accounted for by non-controlling interest holders;
▪
reduction of capital for the dividend payment in the amount of EUR 39,742,259, of which
EUR 1,704 relates to the dividend payment to non-controlling interests;
▪
allocation of net profit from 2023 to net profit brought forward in the amount of EUR
7,192,538;
▪
allocation of net profit from 2024 to reserves from profit in the amount of EUR 55,844,921;
▪
increase of accumulated other comprehensive income and net profit brought forward in the
total amount of EUR 6,199,299, of which EUR 8,654 reduces the capital of non-controlling
interest holders. The decrease relates to the re-measurement of the fair value of financial
instruments, insurance and reinsurance contracts, and the recalculation of actuarial gains
and losses related to employee benefits;
▪
the effect of repurchases of shares of subsidiaries from non-controlling interests, which
reduced the value of non-controlling interests by EUR 42,510.
The following changes are shown in the Company’s statement of changes in equity for 2024:
▪
increase in capital for net profit of the year in the amount of EUR 98,231,897;
▪
reduction of capital for the payment of dividends in the amount of EUR 39,786,509 based on
a general meeting of shareholders' resolution;
▪
allocation of net profit from 2023 to net profit brought forward in the amount of EUR
4,782,244;
▪
allocation of net profit from 2024 to reserves from profit in the amount of EUR 49,000,000
based on a management board's decision;
▪
increase of accumulated other comprehensive income and net profit brought forward in the
total amount of EUR 671,094, which relate to the re-measurement of the fair value of
financial instruments, insurance and reinsurance contracts, and the recalculation of
Subordinated liabilities
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Amortised cost | 152,130,399 | 49,994,402 | 152,130,399 | 49,994,402 |
Fair value | 147,215,330 | 53,087,374 | 147,215,330 | 53,087,374 |
Subordinated bond with the ISIN code XS1980276858 was issued on 24 April 2019 in the amount
of EUR 50 million (500 denominations of EUR 100,000). The final maturity date of said bond is
22 October 2049 and the first call date is 22 October 2029. Until the first call, interest is paid
annually at the fixed interest rate of 4.375%. Thereafter, the interest rate is variable, i.e. 3-month
Euribor + 4.845%, and interest is paid quarterly. The bond is valued at amortised cost in the
financial statements. The bond was listed on the Luxembourg Stock Exchange on 30 April 2019
(ISIN code XS1980276858). The bond is subordinated (Tier 2) and issued in line with the Solvency
II regulations.
The second subordinated bond with ISIN XS2848005166 was issued in July 2024 for EUR 100
million (1,000 denominations of EUR 100,000). The final maturity date of said bond is 16 January
2045 and the first call date is 16 July 2034. Until the first call, interest is paid annually at the fixed
420
interest rate of 6.7%. Thereafter, the interest rate is variable, i.e. 3-month Euribor + 4.937%, and
interest is paid quarterly. The bond is valued at amortised cost in the financial statements. The
bond was listed on the Luxembourg Stock Exchange (ISIN code XS2848005166). The bond is
subordinated (Tier 2) and issued in line with the Solvency II regulations. The two bonds issued
are carried at amortised cost. When calculating the fair value, the price according to the
valuation model is taken into account, as there are very few transactions on the stock exchange.
Bond price as at 31 December 2024 was 101.482% for the first bond and 82.147% for the second
bond (31 December 2023: 105.338%).
In the event of the Company’s bankruptcy or liquidation, liabilities from the above-mentioned
bond issues are subordinated to net debt instruments and are paid only when all non-
subordinated liabilities to ordinary creditors have been paid. The holders of bonds do not have
the right to early redemption before the maturity date set by the amortisation schedule. Bonds
Provisions
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Employee benefits | 20,064,123 | 19,665,677 | 14,704,140 | 14,795,940 |
Provisions for retirement benefits | 11,723,376 | 11,353,153 | 7,946,511 | 7,869,408 |
Provisions for jubilee payments | 2,320,479 | 2,431,226 | 1,917,859 | 2,037,105 |
Provisions for unused leave | 6,020,268 | 5,881,298 | 4,839,770 | 4,889,427 |
Other provisions and long-term deferred items | 5,932,008 | 10,681,808 | 174,254 | 1,227,310 |
TOTAL | 25,996,131 | 30,347,485 | 14,878,394 | 16,023,250 |
Movement in provisions for retirement benefits and jubilee payments
The following estimates and assumptions were taken into account in the calculation of
provisions for pensions and retirement benefits as at 31 December 2024:
▪
The expected mortality based on crude mortality tables for the population of Slovenia
from 2023 (Statistical Office of Slovenia), taking into account a 30% lower mortality
than given in those tables; in the companies outside of Slovenia, mortality tables from
individual countries were taken into account.
▪
The expected annual employee turnover depending on age which, on average, stands
at 2.6% in Slovenia; in the companies outside Slovenia, the expected employee turnover
in an individual country was taken into account.
▪
The expected annual average wage growth in Slovenia was 3.9%; in the subsidiaries
outside Slovenia, the expected average wage growth in an individual country was taken
into account.
▪
The yield curve of the Slovenian government debt securities denominated in EUR as at
30 November 2024. The ten-year benchmark is 2.89%. In the companies outside Slovenia,
the yield curves of government debt securities of individual countries were taken into
account.
421
in EUR | |||
| Triglav Group | Provisions for retirement benefits | Provisions for jubilee payments | TOTAL |
As at 1 Jan 2023 | 9,797,099 | 2,399,605 | 12,196,704 |
Current service cost | 551,565 | 205,703 | 757,268 |
Interest cost | 241,269 | 59,567 | 300,836 |
Actuarial gains/losses due to: | |||
- changes in demographic assumptions | -4,176 | -3,974 | -8,150 |
- changes in financial assumptions | 574,188 | 71,247 | 645,435 |
- experience adjustments | 652,501 | 76,314 | 728,815 |
Past service cost | 10,427 | 4,272 | 14,699 |
Gains/losses upon payment | -162,115 | -9,169 | -171,284 |
Payouts during the year | -557,287 | -257,223 | -814,510 |
Exchange rate difference | -65,784 | 207 | -65,577 |
As at 31 Dec 2023 = 1 Jan 2024 | 11,353,159 | 2,431,226 | 13,784,385 |
Current service cost | 674,570 | 220,855 | 895,425 |
Interest cost | 230,871 | 56,443 | 287,314 |
Actuarial gains/losses due to: | |||
- changes in demographic assumptions | -73,071 | -4,708 | -77,779 |
- changes in financial assumptions | 419,072 | 320,196 | 739,268 |
- experience adjustments | 69,114 | -384,479 | -315,365 |
Past service cost | -3,418 | 0 | -3,418 |
Gains/losses on payout | -410,138 | 2,082 | -408,056 |
Payouts during the year | -549,084 | -321,205 | -870,289 |
Exchange rate difference | 12,301 | 69 | 12,370 |
As at 31 Dec 2024 | 11,723,376 | 2,320,479 | 14,043,855 |
422
in EUR | |||
| Zavarovalnica Triglav | Provisions for retirement benefits | Provisions for jubilee payments | TOTAL |
Balance of provisions as at 1 Jan 2023 | 6,817,224 | 1,925,223 | 8,742,447 |
Current service cost | 271,170 | 133,605 | 404,775 |
Interest cost | 203,186 | 57,052 | 260,238 |
Actuarial gains/losses due to: | |||
- changes in financial assumptions | 547,353 | 66,164 | 613,517 |
- experience adjustments | 715,389 | 76,791 | 792,180 |
Past service cost | 10,427 | 4,272 | 14,699 |
Profit/loss upon payment | -208,291 | -13,037 | -221,328 |
Payouts during the year | -487,050 | -212,965 | -700,015 |
Balance of provisions as at 31 Dec 2023 = 1 Jan 2024 | 7,869,408 | 2,037,105 | 9,906,513 |
Current service cost | 395,032 | 153,199 | 548,231 |
Interest cost | 196,803 | 54,042 | 250,845 |
Actuarial gains/losses due to: | |||
- changes in demographic assumptions | -127,692 | -4,715 | -132,407 |
- changes in financial assumptions | 253,565 | 313,720 | 567,285 |
- experience adjustments | 219,915 | -375,620 | -155,705 |
Profit/loss upon payment | -400,524 | 1,244 | -399,280 |
Payouts during the year | -459,996 | -261,116 | -721,112 |
Balance of provisions as at 31 Dec 2024 | 7,946,511 | 1,917,859 | 9,864,370 |
Sensitivity analysis of parameter changes
Triglav Group
in EUR | |||
Parameter | Parameter change | 2024 | 2023 |
Interest rate | shift in the discount curve by +0.25% | -277,393 | -271,626 |
shift in the discount curve by -0.25% | 235,283 | 280,948 | |
Wage growth | change in annual wage growth by +0.5% | 477,760 | 444,173 |
change in annual wage growth by -0.5% | -370,870 | -395,910 | |
Mortality rate | constant increase in mortality by +20% | -106,691 | -98,727 |
constant increase in mortality by -20% | 109,155 | 101,112 | |
Early employment termination | shift in the expense curve by +20% | -565,228 | -472,652 |
shift in the expense curve by -20% | 625,001 | 512,279 |
Zavarovalnica Triglav
in EUR | |||
Parameter | Parameter change | 2024 | 2023 |
Interest rate | shift in the discount curve by +0.25% | -181,752 | -174,700 |
shift in the discount curve by -0.25% | 188,797 | 181,493 | |
Wage growth | change in annual wage growth by +0.5% | 366,287 | 345,944 |
change in annual wage growth by -0.5% | -328,012 | -309,516 | |
Mortality rate | constant increase in mortality by +20% | -72,598 | -75,886 |
constant increase in mortality by -20% | 73,543 | 76,920 | |
Early employment termination | shift in the expense curve by +20% | -385,018 | -319,749 |
shift in the expense curve by -20% | 411,902 | 340,212 |
423
Movement in provisions for unused annual leave and other provisions and long-term deferred
items
in EUR | ||
Triglav Group | Provisions for unused leave | Other provisions |
As at 1 Jan 2023 | 5,314,156 | 15,573,693 |
Creation | 5,281,991 | 5,392,601 |
Use | -4,493,778 | -1,025,094 |
Release, | -206,900 | -9,298,530 |
Effect of exchange rate differences | -14,174 | 39,140 |
As at 31 Dec 2023 = 1 Jan 2024 | 5,881,295 | 10,681,810 |
Creation | 4,736,665 | 1,529,322 |
Use | -4,565,858 | -1,702,345 |
Release | -31,880 | -4,577,104 |
Effect of exchange rate differences | 46 | 325 |
As at 31 Dec 2024 | 6,020,268 | 5,932,008 |
in EUR | ||
Zavarovalnica Triglav | Provisions for unused leave | Other provisions |
As at 1 Jan 2023 | 4,481,693 | 4,893,718 |
Creation | 4,889,427 | 1,152,773 |
Use | -4,481,693 | -280,199 |
Release | 0 | -4,538,982 |
As at 31 Dec 2023 = 1 Jan 2024 | 4,889,427 | 1,227,310 |
Creation | 4,512,936 | 119,146 |
Use | -4,562,593 | -1,172,202 |
As at 31 Dec 2024 | 4,839,770 | 174,254 |
Other liabilities
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Liabilities for labour costs | 40,670,858 | 31,260,501 | 35,168,543 | 26,848,920 |
Accrued costs and expenses and short-term deferred income | 18,834,376 | 17,009,906 | 8,611,810 | 7,172,279 |
Non-attributable liabilities from insurance operations | 22,259,381 | 21,316,579 | 14,647,112 | 11,073,746 |
Liabilities for overpayments and prepayments | 10,131,815 | 5,720,365 | 9,331,886 | 4,865,652 |
Trade payables | 13,617,565 | 14,014,947 | 10,242,385 | 10,667,819 |
Other current liabilities | 16,168,386 | 12,275,041 | 6,556,237 | 5,115,143 |
TOTAL | 121,682,381 | 101,597,339 | 84,557,975 | 65,743,559 |
As at 31 December 2024, the Company's liabilities related to labour costs include EUR 4,919,784
Income from asset management and net other operating income and expenses
Income from asset management in 2024 for the Group amounted to EUR 49,364,063 (2023: EUR
39,685,487) and for the Company to EUR 3,158,050 (2023: EUR 2,854,726). It relates to income
from management fees.
424
Net other operating income and expenses are presented in the table below.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Lease income | 5,760,539 | 7,441,237 | 6,479,919 | 6,195,418 |
Non-attributable insurance revenue | 8,538,963 | 8,639,175 | 3,566,172 | 7,433,299 |
Other operating income | 15,569,281 | 10,702,027 | 2,784,210 | 1,990,295 |
Non-attributable insurance service expenses | -13,879,120 | -13,619,930 | -7,246,365 | -6,399,284 |
Investment property expenses | -4,368,066 | -4,094,708 | -4,611,142 | -4,166,588 |
Other operating expenses | -19,760,185 | -8,016,728 | -16,834,485 | -5,099,896 |
Total net other operating income and expenses from operating activities | -8,138,588 | 1,051,073 | -15,861,691 | -46,756 |
Net other operating income and expenses from discontinued operations | -59,651 | 449,475 | -59,651 | 449,475 |
TOTAL | -8,198,239 | 1,500,548 | -15,921,342 | 402,719 |
3.7.15
Net other financial income and expenses
Net other financial income and expenses include interest expenses on the bonds issued by
Zavarovalnica Triglav amounting to EUR 5,264,056 (2023: EUR 2,186,354).
3.7.16
Gains and losses on investments in associates
v EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Gains/losses on investments measured under the equity method | 2,277,683 | 2,242,935 | 2,204,920 | 2,194,361 |
Dividend income from associates | 0 | 0 | 2,227,551 | 16,391,400 |
Other gains/losses on investments in associates | 4,666,520 | 0 | 4,666,520 | 0 |
TOTAL | 6,944,203 | 2,242,935 | 9,098,991 | 18,585,761 |
In 2024, the Company recognised EUR 4,666,520 of gains on disposal of the participating interest
in Nama d.d. There were no realised sales of participating interests in associates in 2023.
Income tax expense
Tax expense in profit or loss
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Current tax expense | -20,266,652 | -14,792,092 | -12,616,147 | -10,092,384 |
Minimum tax expense | -427,032 | 0 | -427,032 | 0 |
Deferred tax expense | -6,930,404 | 9,996,850 | -6,309,384 | 8,548,986 |
TOTAL TAX EXPENSE IN PROFIT OR LOSS | -27,624,088 | -4,795,242 | -19,352,563 | -1,543,398 |
425
Tax expense in other comprehensive income
in EUR | ||||||
| Triglav Group | 2024 | 2023 | ||||
Before tax | Tax | After tax | Before tax | Tax | After tax | |
Gains or losses arising from changes in the fair value of equity securities | 344,386 | -56,874 | 287,512 | 4,536,173 | -722,319 | 3,813,854 |
Gains or losses arising from changes in the fair value of debt securities | 30,812,887 | -6,008,196 | 24,804,691 | 81,752,210 | -10,636,023 | 71,116,187 |
Gains or losses on the valuation of insurance contracts | -25,645,272 | 5,406,134 | -20,239,138 | -49,101,049 | 7,403,718 | -41,697,331 |
Gains or losses on the valuation of reinsurance contracts | 1,937,612 | -534,272 | 1,403,340 | 3,668,513 | -1,132,642 | 2,535,871 |
Actuarial gains/losses | -142,854 | 85,741 | -57,113 | -1,521,911 | 525,039 | -996,872 |
Translation differences | 119,945 | -20,065 | ||||
Other | -8,654 | -74,181 | ||||
TOTAL OTHER COMPREHENSIVE INCOME | 7,306,759 | -1,107,467 | 6,310,583 | 39,333,936 | -4,562,227 | 34,677,463 |
in EUR | ||||||
Zavarovalnica Triglav | 2024 | 2023 | ||||
Before tax | Tax | After tax | Before tax | Tax | After tax | |
Gains or losses arising from changes in the fair value of equity securities | 258,519 | -56,874 | 201,645 | 4,332,776 | -700,867 | 3,631,909 |
Gains or losses arising from changes in the fair value of debt securities | 19,280,482 | -4,153,306 | 15,127,177 | 68,395,862 | -8,667,698 | 59,728,164 |
Gains or losses on the valuation of insurance contracts | -20,289,544 | 4,463,700 | -15,825,844 | -37,331,627 | 4,971,511 | -32,360,116 |
Gains or losses on the valuation of reinsurance contracts | 1,427,411 | -314,030 | 1,113,380 | 4,091,190 | -752,808 | 3,338,382 |
Actuarial gains/losses | -31,908 | 86,644 | 54,736 | -1,575,443 | 525,039 | -1,050,404 |
TOTAL OTHER COMPREHENSIVE INCOME | 644,960 | 26,134 | 671,094 | 37,912,758 | -4,624,823 | 33,287,935 |
In accordance with the Corporate Income Tax Act (ZDDPO-2), the applicable tax rate in Slovenia
was 22% in 2024, the same as in the preceding year. In subsidiaries operating outside Slovenia,
tax rates were used as applicable in the country of operation and in compliance with the local
legislation.
Reconciliation between accounting profit and tax expense
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Accounting profit before tax | 159,042,201 | 21,060,436 | 117,584,460 | 15,761,154 |
Tax calculated based on accounting income and expenses (at domestic rates applied to profits in the relevant countries) | -34,331,172 | -13,000,659 | 25,868,581 | -8,656,686 |
Adjustments to the current year's tax return: | 14,000,963 | -1,791,433 | -13,315,991 | -1,435,698 |
Tax effect of income deductible for tax purposes | 7,327,468 | 4,086,244 | 6,449,784 | 3,853,492 |
Tax effect of expenses deductible for tax purposes | -3,611,762 | -3,058,585 | -2,697,302 | -2,340,265 |
Tax relief | 9,499,763 | 1,580,913 | 8,917,210 | 961,298 |
Effect of other increases/decreases in the tax base | 785,494 | -4,400,005 | 646,299 | -3,910,222 |
Other adjustments | 63,557 | 0 | 63,557 | 0 |
Current tax expense | -20,266,652 | -14,792,092 | -12,616,147 | -10,092,384 |
Minimum (top-up) tax expense | -427,032 | 0 | -427,032 | 0 |
Deferred tax expense | -6,930,404 | 9,996,850 | -6,309,384 | 8,548,986 |
TOTAL TAX EXPENSE [1] | -27,624,088 | -4,795,242 | -19,352,563 | -1,543,398 |
Effective tax rate | 17.37% | 22.77% | 16.46% | 9.79% |
426
The reconciliation of accounting profit and tax expense for 2023 was significantly impacted by
the merger of Triglav, Zdravstvena zavarovalnica. A breakdown of the effects by company is
presented below:
in EUR | |||
| 2023 | Zavarovalnica Triglav | Triglav, Zdravstvena zavarovalnica | TOTAL |
Accounting profit before tax | 45,561,505 | -29,800,351 | 15,761,154 |
Tax calculated based on accounting income and expenses | -8,656,686 | 0 | -8,656,686 |
Adjustments to the current year's tax return: | -1,435,698 | 0 | -1,435,698 |
Tax effect of income deductible for tax purposes | 3,853,492 | 0 | 3,853,492 |
Tax effect of expenses deductible for tax purposes | -2,340,265 | 0 | -2,340,265 |
Tax relief | 961,298 | 0 | 961,298 |
Effect of other increases/decreases in the tax base | -3,910,222 | 0 | -3,910,222 |
Current tax expense | -10,092,384 | 0 | -10,092,384 |
Deferred tax expense | 3,193,306 | 5,355,680 | 8,548,986 |
TOTAL TAX EXPENSE | -6,899,078 | 5,355,680 | -1,543,398 |
Effective tax rate [1] | 15.14% | -18.00% | 9.79% |
The Group's current tax assets and liabilities are netted at the level of each tax jurisdiction. The
Group's current tax assets as at 31 December 2024 amounted to EUR 260,573 (31 December
2023: EUR 8,491,524) and the Group's current tax liabilities as at 31 December 2024 amounted
to EUR 5,633,245 (31 December 2023: EUR 571,555).
The Company's current tax assets and liabilities are netted. The Company's current tax assets as
at 31 December 2024 amounted to EUR 2,360,480 and its current tax liabilities as at 31
December 2023 amounted to EUR 9,302,529.
The Company has no unused tax losses; at Group level they amounted to EUR 29,505,313 as at
31 December 2024 (31 December 2023: EUR 58,940,281).
Minimum tax
The top-up tax is calculated in accordance with the applicable legislation adopted by each
jurisdiction, as well as OECD guidelines and commentaries published up to 31 December 2024.
The Group applied the mandatory temporary exemption under IAS 12 from recognising deferred
tax assets and liabilities related to the global minimum tax.
For jurisdictions that have not met the transitional CbCR safe harbour criteria (i.e.
de minimis
test, simplified statutory effective tax rate test, routine profits test), the Company, as the
ultimate parent company, estimated the impact of the global minimum tax on the 2024
financial statements to be EUR 427,037, based on applicable tax legislation and OECD
156
156
The provisions of the Minimum Tax Act (ZMD) are interpreted and applied in accordance with the guidelines issued and published by the OECD,
which are continuously updated.
427
4.
Other information
Fair value measurement of assets and liabilities
4.1.1
Fair value hierarchy of assets and liabilities
The following tables show the fair value of assets measured at fair value and those that are not measured at fair value but for which fair value is
disclosed. The table excludes cash, receivables and other financial liabilities whose carrying amount is the best indicator of their fair value.
Fair value hierarchy of the Triglav Group's assets and liabilities
in EUR | ||||||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||||||
Carrying amount | Level 1 | Level 2 | Level 3 | Total fair value | Carrying amount | Level 1 | Level 2 | Level 3 | Total fair value | |
ASSETS - MEASURED AT FAIR VALUE | ||||||||||
Financial investments at fair value through other comprehensive income | 1,911,560,385 | 367,992,586 | 1,539,194,989 | 4,372,810 | 1,911,560,385 | 1,672,966,932 | 313,309,159 | 1,355,631,285 | 4,026,488 | 1,672,966,932 |
Debt and other fixed-return securities | 1,907,187,575 | 367,992,586 | 1,539,194,989 | 0 | 1,907,187,575 | 1,668,940,444 | 313,309,159 | 1,355,631,285 | 0 | 1,668,940,444 |
Equity securities | 4,372,810 | 0 | 0 | 4,372,810 | 4,372,810 | 4,026,488 | 0 | 0 | 4,026,488 | 4,026,488 |
Financial investments at fair value through profit or loss | 906,463,048 | 726,452,642 | 30,164,724 | 149,845,682 | 906,463,048 | 740,314,111 | 592,633,465 | 32,240,449 | 115,440,197 | 740,314,111 |
Debt and other fixed-return securities | 31,222,922 | 1,058,198 | 30,164,724 | 0 | 31,222,922 | 34,769,923 | 3,918,016 | 30,851,907 | 0 | 34,769,923 |
Equity securities | 875,220,316 | 725,394,444 | 0 | 149,825,872 | 875,220,316 | 705,544,188 | 588,715,449 | 1,388,542 | 115,440,197 | 705,544,188 |
Other financial investments | 19,810 | 0 | 0 | 19,810 | 19,810 | 0 | 0 | 0 | 0 | 0 |
Financial investments from financial contracts at fair value through profit or loss | 493,515,077 | 245,046,147 | 226,376,415 | 22,092,515 | 493,515,077 | 366,826,746 | 170,115,240 | 177,124,372 | 19,587,134 | 366,826,746 |
Debt and other fixed-return securities | 292,168,499 | 65,792,084 | 226,376,415 | 0 | 292,168,499 | 214,934,774 | 37,810,402 | 177,124,372 | 0 | 214,934,774 |
Equity securities | 201,346,578 | 179,254,063 | 0 | 22,092,515 | 201,346,578 | 151,891,972 | 132,304,838 | 0 | 19,587,134 | 151,891,972 |
ASSETS FOR WHICH FAIR VALUE IS DISCLOSED | ||||||||||
Financial investments at amortised cost | 222,568,437 | 29,128,518 | 198,410,626 | 0 | 227,539,144 | 229,559,727 | 25,321,845 | 210,855,415 | 0 | 236,177,260 |
Debt and other fixed-return securities | 154,222,672 | 29,128,518 | 130,347,668 | 0 | 159,476,186 | 156,334,533 | 25,321,845 | 136,803,226 | 0 | 162,125,071 |
Deposits with banks | 60,833,549 | 0 | 60,474,522 | 0 | 60,474,522 | 65,794,876 | 0 | 65,485,320 | 0 | 65,485,320 |
Loans given | 6,622,689 | 0 | 6,698,909 | 0 | 6,698,909 | 6,557,904 | 0 | 7,950,799 | 0 | 7,950,799 |
Other financial investments | 889,527 | 0 | 889,527 | 0 | 889,527 | 872,414 | 0 | 616,070 | 0 | 616,070 |
Financial investments from financial contracts at amortised cost | 245,995,862 | 37,567,894 | 201,396,265 | 0 | 238,964,159 | 283,215,425 | 56,843,688 | 216,323,532 | 0 | 273,167,220 |
Debt and other fixed-return securities | 245,995,862 | 37,567,894 | 201,396,265 | 0 | 238,964,159 | 283,215,425 | 56,843,688 | 216,323,532 | 0 | 273,167,220 |
Investment property using the cost model | 70,411,373 | 0 | 0 | 85,545,970 | 85,545,970 | 67,953,773 | 0 | 0 | 86,515,708 | 86,515,708 |
Subordinated debt at amortised cost | 152,130,399 | 0 | 147,215,330 | 0 | 147,215,330 | 49,994,402 | 0 | 53,087,374 | 0 | 53,087,374 |
428
Fair value hierarchy of the Zavarovalnica Triglav's assets and liabilities
in EUR | ||||||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||||||
Carrying amount | Level 1 | Level 2 | Level 3 | Total fair value | Carrying amount | Level 1 | Level 2 | Level 3 | Total fair value | |
ASSETS - MEASURED AT FAIR VALUE | ||||||||||
Financial investments at fair value through other comprehensive income | 1,301,734,118 | 272,700,732 | 1,026,133,476 | 2,899,910 | 1,301,734,118 | 1,161,179,788 | 237,353,180 | 921,185,218 | 2,641,391 | 1,161,179,789 |
Debt and other fixed-return securities | 1,298,834,209 | 272,700,732 | 1,026,133,476 | 0 | 1,298,834,209 | 1,158,538,398 | 237,353,180 | 921,185,218 | 0 | 1,158,538,398 |
Equity securities | 2,899,910 | 0 | 0 | 2,899,910 | 2,899,910 | 2,641,391 | 0 | 0 | 2,641,391 | 2,641,391 |
Financial investments at fair value through profit or loss | 815,760,668 | 647,498,569 | 20,107,544 | 148,154,554 | 815,760,668 | 651,624,386 | 516,893,782 | 20,830,338 | 113,900,267 | 651,624,386 |
Debt and other fixed-return securities | 20,107,544 | 0 | 20,107,544 | 0 | 20,107,544 | 22,677,800 | 1,847,463 | 20,830,338 | 0 | 22,677,800 |
Equity securities | 795,633,313 | 647,498,569 | 0 | 148,134,744 | 795,633,313 | 628,946,586 | 515,046,319 | 0 | 113,900,267 | 628,946,586 |
Other financial investments | 19,810 | 0 | 0 | 19,810 | 19,810 | 0 | 0 | 0 | 0 | 0 |
Financial investments from financial contracts at fair value through profit or loss | 207,542,830 | 102,520,781 | 95,142,959 | 9,879,090 | 207,542,830 | 169,625,986 | 89,298,067 | 72,480,834 | 7,847,086 | 169,625,986 |
Debt and other fixed-return securities | 123,045,853 | 27,902,894 | 95,142,959 | 0 | 123,045,853 | 96,181,144 | 23,700,309 | 72,480,834 | 0 | 96,181,144 |
Equity securities | 84,496,977 | 74,617,887 | 0 | 9,879,090 | 84,496,977 | 73,444,843 | 65,597,757 | 0 | 7,847,086 | 73,444,843 |
ASSETS FOR WHICH FAIR VALUE IS DISCLOSED | ||||||||||
Financial investments at amortised cost | 143,875,820 | 26,784,245 | 123,406,420 | 0 | 150,190,665 | 142,843,306 | 20,840,645 | 129,203,850 | 0 | 150,044,495 |
Debt and other fixed-return securities | 131,356,383 | 26,784,245 | 111,065,373 | 0 | 137,849,618 | 131,083,304 | 20,840,645 | 117,765,696 | 0 | 138,606,341 |
Deposits with banks | 7,212,865 | 0 | 7,151,605 | 0 | 7,151,605 | 7,212,364 | 0 | 7,073,871 | 0 | 7,073,871 |
Loans given | 5,306,572 | 0 | 5,189,442 | 0 | 5,189,442 | 4,547,639 | 0 | 4,364,283 | 0 | 4,364,283 |
Financial investments from financial contracts at amortised cost | 77,040,080 | 13,223,692 | 63,604,734 | 0 | 76,828,426 | 86,215,285 | 18,046,757 | 66,982,354 | 0 | 85,029,111 |
Debt and other fixed-return securities | 77,040,080 | 13,223,692 | 63,604,734 | 0 | 76,828,426 | 86,215,285 | 18,046,757 | 66,982,354 | 0 | 85,029,111 |
Investment property using the cost model | 44,971,145 | 0 | 0 | 59,449,713 | 59,449,713 | 43,427,181 | 0 | 0 | 59,495,267 | 59,495,267 |
Subordinated debt at amortised cost | 152,130,399 | 0 | 147,215,330 | 0 | 147,215,330 | 49,994,402 | 0 | 53,087,374 | 0 | 53,087,374 |
429
4.1.2
Movement in financial investments classified in Level 3 of the fair value hierarchy
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
| Financial investments | Financial investments from financial contracts | Financial investmentss | Financial investments from financial contracts | |
As at 1 Jan 2023 | 98,579,248 | 11,211,160 | 95,437,684 | 3,609,540 |
Acquisitions | 21,600,882 | 8,094,848 | 21,600,880 | 4,269,553 |
Disposals | -2,553,434 | 0 | -2,536,468 | 0 |
Revaluation of instruments through profit or loss | 2,262,044 | 281,126 | 2,500,185 | -32,008 |
Revaluation of instruments through other comprehensive income | -422,254 | 0 | -460,838 | 0 |
Reclassification between levels | 199 | 0 | 214 | 0 |
As at 31 Dec 2023 = 1 Jan 2024 | 119,466,685 | 19,587,134 | 116,541,657 | 7,847,085 |
Acquisitions | 37,549,224 | 2,919,665 | 37,516,724 | 2,139,665 |
Disposals | -8,750,666 | -210,387 | -8,703,002 | -210,387 |
Revaluation of instruments through profit or loss | 5,471,241 | -203,897 | 5,312,902 | 102,726 |
Revaluation of instruments through other comprehensive income | 354,266 | 0 | 258,519 | 0 |
Exchange rate differences | 127,742 | 0 | 127,663 | 0 |
As at 31 Dec 2024 | 154,218,492 | 22,092,515 | 151,054,463 | 9,879,090 |
The value of financial investments classified into Level 3 increased in 2024 predominantly due
to the payments into alternative investment funds. The increase is reduced by payments
received from alternative investment funds, which represent the bulk of the "sales" item. The
"revaluation through profit or loss" item, which significantly contributes to the overall increase
in financial investments classified into level 3, is also mainly a result of changes in the value of
alternative investment funds. In 2024, there were no disposals of financial investments
classified in Level 3 of the fair value hierarchy either in the Group or the Company. In 2023, the
disposals of financial investments in the Group and the Company amounted to EUR 3,487,156
in total. The gain on disposal of EUR 63,385 was recognised in the statement of profit or loss.
4.1.3
Sensitivity analysis of non-marketable securities
Sensitivity analysis of financial investments classified in Level 3 is disclosed below. The
sensitivity analysis shows how much the fair values of these financial investments would
increase or decrease in the case of differently applied assumptions that are not based on
observable market data. The sensitivity analysis considered a median scenario of value
estimates.
in EUR | ||||
| Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Non-marketable assets (Level 3) | 176,291,195 | 139,053,819 | 160,913,743 | 124,388,744 |
Estimated value deviation | -42,882,841/17,782,049 | -33,756,788/14,202,985 | -39,454,319/16,253,708 | -30,464,312/12,519,336 |
With regard to investments valued using model-based valuation techniques, the value deviation
is determined in the valuation process with adjustments made to key assumptions (price of
invested capital, growth rate). For non-valued investments, ±15% of the change in investment
value is taken into account in calculating the deviation and asymmetric –25% and +10% of the
change in investment value for alternative investment funds.
430
4.1.4
Reclassification of financial investments among levels
Reclassification of financial investments of the Triglav Group among levels
in EUR | ||||
2024 | 2023 | |||
Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | |
Financial investments | ||||
Debt and other fixed-return securities | 220,885,977 | 202,183,424 | 217,059,836 | 112,772,641 |
TOTAL | 220,885,977 | 202,183,424 | 217,059,836 | 112,772,641 |
in EUR | ||||
2024 | 2023 | |||
Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | |
Financial investments from financial contracts | ||||
Debt and other fixed-return securities | 54,785,449 | 28,683,221 | 48,325,659 | 49,016,213 |
TOTAL | 54,785,449 | 28,683,221 | 48,325,659 | 49,016,213 |
Reclassification of financial investments of Zavarovalnica Triglav among levels
in EUR | ||||
2024 | 2023 | |||
Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | |
Financial investments | ||||
Debt and other fixed-return securities | 103,627,024 | 130,040,509 | 179,339,905 | 106,305,586 |
TOTAL | 103,627,024 | 130,040,509 | 179,339,905 | 106,305,586 |
in EUR | ||||
2024 | 2023 | |||
Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | Reclassification from Level 1 to Level 2 | Reclassification from Level 2 to Level 1 | |
Financial investments from financial contracts | ||||
Debt and other fixed-return securities | 22,185,905 | 14,171,073 | 7,667,349 | 21,044,425 |
TOTAL | 22,185,905 | 14,171,073 | 7,667,349 | 21,044,425 |
Amounts spent on auditors
The contracted value of audit services provided by Deloitte Revizija d.o.o. and other firms in its
network for 2024 is shown in the table below.
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Auditing of the Annual Report | 514,731 | 902,024 | 223,313 | 323,143 |
Other assurance and related services | 349,899 | 131,675 | 312,143 | 68,808 |
TOTAL | 864,630 | 1,033,698 | 535,457 | 391,951 |
Government grants
The following are government grants received by the Company in the form of:
▪
reimbursements of labour costs by the state
▪
government grants received as part of aid measures in response to unfavourable
developments in the economy (primarily rising energy prices);
▪
incentives for the employment of specific categories of workers;
▪
funds obtained through public tenders, both for co-financing costs and for the purchase of
specific assets;
431
in EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
2024 | 2023 | 2024 | 2023 | |
Reimbursements of labour costs by the state | 2,520,955 | 2,939,619 | 2,052,313 | 2,640,393 |
Government grants received in the framework of aid measures | 197,420 | 231,202 | 150,769 | 167,253 |
Government incentives for the employment of specific categories of workers | 32,350 | 0 | 0 | 0 |
Funds obtained in public tenders for co-financing of costs | 5,860 | 145,453 | 0 | 140,138 |
Funds obtained in public tenders for the acquisition of assets | 10,996,355 | 0 | 10,996,355 | 0 |
Other government grants | 39,277 | 193,542 | 0 | 0 |
TOTAL | 13,792,217 | 3,509,816 | 13,199,437 | 2,947,784 |
Cost-related grants reduce the costs to which they relate or are recognised as other income.
Asset-related grants are recognised as deferred income and transferred to profit or loss on a
straight-line basis over the useful life of the asset.
Related party transactions
Related party transactions are disclosed separately for the Triglav Group and Zavarovalnica
Triglav:
▪
▪
transactions with shareholders and shareholder-related companies;
▪
▪
transactions with subsidiaries are disclosed only at Company level and include transactions
with entities in which the Company has a dominant influence; at Group level, these
transactions are eliminated in the consolidation processes;
▪
▪
transactions with associates in which the Group or the Company have significant influence;
▪
▪
transactions with the management which is represented by the members of the
Management Board and the Supervisory Board.
Transactions with shareholders and shareholder-related companies
The largest shareholders of Zavarovalnica Triglav are Zavod za pokojninsko in invalidsko
zavarovanje Slovenije (Pension and Disability Insurance Institute of Slovenia – ZPIZ) and
Slovenski državni holding (Slovenian Sovereign Holding – SDH), which hold a 34.47% and a
28.09% participating interest respectively. The only material transaction in 2024 with the two
largest shareholders was the dividend payout. Dividends of EUR 13,714,410 were paid to Zavod
za pokojninsko in invalidsko zavarovanje (the Pension and Disability Insurance Institute of
Slovenia) and dividends of EUR 11,176,030 to Slovenski državni holding (the Slovenian Sovereign
Holding).
The shareholder-related companies are also those in which SDH has a majority participating
interest or dominant influence. As at 31 December 2024, there were 55 such companies, with
which neither the Company nor the Group have significant transactions.
The related party services are charged at the same prices as those applying to unrelated parties.
432
Transactions of Zavarovalnica Triglav with subsidiaries and associates
Transactions between Group companies primarily related to reinsurance, underwriting
commissions, investment and real property management, and intercompany rentals. The
income and expenses generated by the Company with the Group companies in 2024 are shown
in the table below.
in EUR | ||
2024 | 2023 | |
INCOME AND EXPENSES | ||
Written insurance premium | 25.084.196 | 26.524.036 |
Written reinsurance premium | -156.090.283 | -141.057.331 |
Income from reinsurance commissions | 35.915.360 | 33.667.221 |
Other income from insurance operations | 1.642.291 | 1.226.473 |
Interest income | 32.681 | 0 |
Rental income | 1.118.032 | 1.053.911 |
Other income | 8.461.675 | 7.127.989 |
TOTAL INCOME | -83.836.047 | -71.457.701 |
Claims settled | -4.129.338 | -10.843.457 |
Reinsurers' share in claims | 86.959.585 | 113.959.453 |
Exprense from reinsurance commissions | -5.614.726 | -5.745.088 |
Expenses from insurance contracts | -3.059.948 | -200.965 |
Finance expenses | -17.457 | -19.554 |
Other expences | -769.635 | -605.413 |
Operating costs | -8.857.044 | -7.317.227 |
TOTAL EXPENSES | 64.511.438 | 89.227.749 |
The related party services among Group members are charged at the same prices as those
applying to unrelated parties. Pricing is based on the external or internal comparable
uncontrolled price method and the cost allocation method.
As at 31 December 2024, Zavarovalnica Triglav recognised receivables and liabilities from its
subsidiaries as shown in the table below.
in EUR | ||
31 Dec 2024 | 31 Dec 2023 | |
ASSETS | ||
Right-of-use of assets | 571.198 | 661.080 |
Loans | 1.662.903 | 1.070.031 |
Receivables from insurance and reinsurance operations | 25.163.636 | 70.817.753 |
Short term receivables from financing | 19.195 | 9.610 |
Other short-term receivables | 1.949.297 | 188.759 |
LIABILITIES | ||
Liabilities from insurance and reinsurance operations | 22.556.998 | 31.243.881 |
Lease liabilities | 613.435 | 699.719 |
Other short-term liabilities | 201.499 | 635.840 |
In 2024, the Group and the Company had no significant transactions with associates and joint
ventures.
By issuing a letter of comfort, Triglav INT d.o.o. acknowledged the unprofitable operations of its
subsidiary, Triglav Osiguranje d.d., Zagreb, and confirmed its intention to ensure that the
subsidiary has sufficient assets to meet all its liabilities for at least the next 12 months from the
reporting date. The letter of comfort does not constitute a direct liability but represents a
contingent liability that could impact the Group's financial position if the subsidiary is unable to
settle its liabilities using its own funds. The Group regularly monitors the subsidiary's financial
position and evaluates the potential financial impact on its consolidated financial statements.
433
Management and supervisory bodies and their remuneration
In 2024, the Management Board members received the following remuneration:
in EUR | |||||||
| First and last name | Fixed remuneration – gross (1)* | Variable remuneration (bonuses) – gross (2) | Total gross (3 = 1 + 2) | Total remuneration – net (4) | Insurance premium – benefits and SVPI (5)** | Other benefits (6)*** | Total benefits and SVPI (7 = 5 + 6) |
Andrej Slapar | 227,408 | 46,139 | 273,547 | 90,585 | 76,975 | 5,397 | 82,372 |
Uroš Ivanc | 216,173 | 43,832 | 260,005 | 88,628 | 55,496 | 0 | 55,496 |
Tadej Čoroli | 216,173 | 43,832 | 260,005 | 88,541 | 55,490 | 2,344 | 57,834 |
Blaž Jakič | 216,173 | 13,405 | 229,578 | 72,191 | 55,495 | 11,474 | 66,969 |
Marica Makoter | 216,173 | 43,832 | 260,005 | 88,058 | 55,496 | 937 | 56,433 |
Barbara Smolnikar**** | 0 | 5,330 | 5,330 | 3,114 | 0 | 0 | 0 |
David Benedek**** | 0 | 5,330 | 5,330 | 3,114 | 0 | 0 | 0 |
TOTAL | 1,092,100 | 201,700 | 1,293,800 | 434,231 | 298,952 | 20,152 | 319,104 |
* Fixed remuneration includes salary, pay for annual leave and jubilee benefits.
** Insurance premiums include premiums for supplemental voluntary pension insurance, accident insurance, liability insurance and other insurance.
*** Other benefits include the use of a company vehicle.
**** The commencement or termination of the function of a Management Board member is described in more detail in Section 3.2 of the Business Report.
The disclosure does not include travel expenses, accommodation costs and daily allowance as,
by their nature, they are not considered remuneration of the Management Board.
As at 31 December 2024, Zavarovalnica Triglav had the following liabilities to the Management
Board members:
in EUR | |||
| First and last name | Deferred variable remuneration (bonuses) – gross (1) | Fixed remuneration (salary) – gross and reimbursement (2) | Total liabilities (3=1+2) |
Andrej Slapar | 54,334 | 18,710 | 73,044 |
Uroš Ivanc | 51,617 | 18,421 | 70,038 |
Tadej Čoroli | 51,617 | 17,775 | 69,392 |
Blaž Jakič | 13,405 | 17,775 | 31,180 |
Marica Makoter | 51,617 | 17,775 | 69,392 |
Barbara Smolnikar | 29,292 | 0 | 29,292 |
David Benedek | 33,102 | 0 | 33,102 |
TOTAL | 284,984 | 90,456 | 375,440 |
As at 31 December 2024, the Company did not have any significant amounts receivable from
Management Board members.
The criteria for the performance assessment of the Management Board members are proposed
by the Appointment and Remuneration Committee and approved by the Supervisory Board. The
purpose of these criteria is to maximise the objective monitoring of the achievement of annual
and medium-term objectives and to periodically assess the performance of the Management
Board members. The performance criteria are designed to follow the Company’s annual and
medium-term business objectives adopted in the Company’s annual business plans and
strategic documents. The definition of a specific objective includes the following: its description,
the expected target value, the assigned weight and the method for measuring or assessing its
achievement. The method used to calculate the performance measures deviations from the set
objectives by awarding a bonus for overperformance and through pay deduction from the basic
salary of a Management Board member for underperformance.
The annual performance bonus is paid in three installments. The first half is paid within 30 days
of the Supervisory Board approving the annual report and adopting a resolution on the bonus
amount, or, in the event the annual report is approved at the General Meeting of Shareholders,
within 30 days of the General Meeting of Shareholders approving the annual report and the
Supervisory Board adopting a resolution on the bonus amount. The remaining 40% of the bonus
434
is paid after two years, and 10% after three years; however, all three payments must be
proportionate to the period of the office being held in a particular calendar year.
The Management Board members are entitled to severance pay equalling six times the average
monthly basic salary they received as board members, if they are dismissed for economic and
business reasons and their employment is terminated as a consequence. Severance is paid
within one month of dismissal.
In 2024, Zavarovalnica Triglav paid EUR 23,288,899 in remuneration to employees under an
individual agreement (2023: EUR 20,888,743), of which EUR 20,834,884 in gross salaries (2023:
EUR 18,626,905) and EUR 2,454,015 in other remuneration (2023: EUR 2,261,838). The amounts
do not include meal and travel allowances.
Membership in the Supervisory Board and its committees is presented in more detail in Business
Report; presented below is the remuneration received by the members of the Supervisory Board
and its committees in 2024.
in EUR | ||||||
| First and last name | Flat-rate remuneration – gross (1) | Attendance fees – gross (2) | Total gross (1 + 2) | Total net | Travel expenses – gross | Travel expenses – net |
Andrej Andoljšek | 30,000 | 5,885 | 35,885 | 26,270 | 424 | 310 |
Tomaž Benčina | 22,500 | 4,290 | 26,790 | 19,612 | 1,372 | 1,004 |
Monica Cramer Manhem | 20,111 | 3,025 | 23,136 | 17,930 | 10,006 | 7,754 |
Barbara Nose | 12,152 | 2,145 | 14,297 | 10,466 | 0 | 0 |
Rok Ponikvar | 7,437 | 1,155 | 8,592 | 5,391 | 1,739 | 1,091 |
Igor Stebernak | 10,200 | 2,200 | 12,400 | 8,313 | 215 | 144 |
Tim Umberger | 23,214 | 4,246 | 27,460 | 20,102 | 621 | 454 |
Jure Valjavec | 15,063 | 4,510 | 19,573 | 14,328 | 864 | 632 |
Aleš Košiček | 21,604 | 5,621 | 27,225 | 19,931 | 621 | 454 |
Janja Strmljan Čevnja | 20,111 | 3,245 | 23,356 | 17,098 | 616 | 451 |
Katarina Sitar Šuštar* | 1,400 | 0 | 1,400 | 1025 | 0 | 0 |
Luka Kumer* | 6,646 | 1,595 | 8,241 | 6,033 | 0 | 0 |
Mateja Lovšin Herič* | 2,224 | 1,320 | 3,544 | 2,594 | 0 | 0 |
TOTAL | 192,662 | 39,237 | 231,899 | 169,093 | 16,478 | 12,294 |
* External members sitting on committees.
All the abovementioned remuneration of the members of the Management Board and the
Supervisory Board represents the remuneration received at Zavarovalnica Triglav, d.d. In the
other Group companies, these members did not receive any remuneration that would relate to
the period of performing their function at Zavarovalnica Triglav.
As at 31 December 2024, the Company did not record any material receivables from or liabilities
435
Contingent assets and liabilities and other off-balance sheet records
v EUR | ||||
Triglav Group | Zavarovalnica Triglav | |||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | |
Contingent assets | ||||
Uncollected subrogation receivables | 63,271,940 | 62,762,435 | 49,961,621 | 47,915,673 |
Contingent receivables | 1,204,690 | 34,067,804 | 789,174 | 62,769,507 |
Derivative financial instruments | 13,246,294 | 0 | 13,246,294 | 0 |
Approved undrawn loans | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 |
Contingent liabilities | ||||
Other contingent liabilities | 2,050,719 | 1,636,870 | 47,031 | 294,455 |
Bonds, guarantees and other sureties issued | 79,997,504 | 169,991,733 | 76,969,852 | 156,558,114 |
Other off-balance sheet records | ||||
Alternative investments | 97,797,106 | 106,998,447 | 97,140,413 | 105,529,254 |
Assets under management | 2,260,084,264 | 1,699,308,044 | 0 | 0 |
Contingent liabilities by maturity – Triglav Group
in EUR | |||||
31 Dec 2024 | Not defined | Less than 1 year | 1-5 years | 5-10 years | TOTAL |
Bonds, guarantees and other sureties issued | 1,631,776 | 0 | 418,943 | 0 | 2,050,719 |
Other contingent liabilities | 1,300,000 | 348,299 | 76,301,845 | 2,047,361 | 79,997,505 |
TOTAL | 2,931,776 | 348,299 | 76,720,788 | 2,047,361 | 82,048,224 |
in EUR | |||||
31 Dec 2023 | Not defined | Less than 1 year | 1-5 years | 5-10 years | TOTAL |
Bonds, guarantees and other sureties issued | 1,636,870 | 0 | 0 | 0 | 1,636,870 |
Other contingent liabilities | 1,813,361 | 12,133,619 | 154,194,550 | 1,850,203 | 169,991,733 |
TOTAL | 3,450,231 | 12,133,619 | 154,194,550 | 1,850,203 | 171,628,603 |
Contingent liabilities by maturity – Zavarovalnica Triglav
in EUR | |||||
31 Dec 2024 | Not defined | Less than 1 year | 1-5 years | 5-10 years | TOTAL |
Bonds, guarantees and other sureties issued | 47,031 | 0 | 0 | 0 | 47,031 |
Other contingent liabilities | 0 | 0 | 74,922,491 | 2,047,361 | 76,969,852 |
TOTAL | 47,031 | 0 | 74,922,491 | 2,047,361 | 77,016,883 |
in EUR | |||||
31 Dec 2023 | Not defined | Less than 1 year | 1-5 years | 5-10 years | TOTAL |
Bonds, guarantees and other sureties issued | 294,455 | 0 | 0 | 0 | 294,455 |
Other contingent liabilities | 513,361 | 0 | 154,194,550 | 1,850,203 | 156,558,114 |
TOTAL | 807,816 | 0 | 154,194,550 | 1,850,203 | 156,852,569 |
4.6
Major legal and arbitration disputes
As of 31 December 2024, the Group and the Insurance Company are not involved in any litigation
that would give rise to significant actual or potential liabilities, except for those included in the
assessment of liabilities under insurance contracts.
436
Events after the reporting period
In the period between the end of the reporting period and the date when the financial
statements were authorised for issue, no adjusting events occurred that would affect the
437
438
Appendix 1: Triglav Group as at 31 December 2024*
Insurance
Zavarovalnica Triglav d.d.
Pozavarovalnica Triglav Re d.d.
Triglav Osiguranje a.d.o., Belgrade
Triglav Osiguranje d.d., Zagreb
Address
Miklošičeva cesta 19, Ljubljana,
Slovenija
Miklošičeva cesta 19, Ljubljana,
Slovenija
Milutina Milankovića 7a, Novi Beograd,
Srbija
Antuna Heinza 4, Zagreb, Hrvaška
Phone
++ 386 (1) 474 72 00, 080 555 555
++ 386 (1) 474 79 00
++ 381 (11) 330 51 00
0800 20 20 80
Email
info@triglav.si
info@triglavre.si
office@triglav.rs
info@triglav.hr
Website
www.triglav.si, www.triglav.eu
www.triglavre.si
www.triglav.rs
www.triglav.hr
Activity
Insurance
Reinsurance
Insurance
Insurance
Equity stake of Zavarovalnica
Triglav/the Triglav Group
100.00%/100.00%
- /100.00%
- /100.00%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
100.00%/100.00%
- /100.00%
- /100.00%
Share capital
EUR 73,701,392
EUR 4,950,000
EUR 19,661,348
EUR 48,228,552
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav
Group
EUR 4,950,000/EUR 4,950,000
- /EUR 19,661,348
- /EUR 48,228,552
Triglav Osiguranje d.d., Sarajevo
Lovćen Osiguranje a.d., Podgorica
Lovćen životna osiguranja a.d.,
Podgorica
Triglav Osiguruvanje a.d., Skopje
Address
Dolina 8, Sarajevo, Bosna in
Hercegovina
Ulica slobode 13a, Podgorica, Črna gora
Ulica Marka Miljanova 29/III,
Podgorica, Črna gora
Bulevar 8-mi Septemvri br. 16, Skopje,
Severna Makedonija
Phone
++ 387 (33) 252 110
++ 382 (20) 404 404
++ 382 (20) 231 882
++ 389 (2) 510 22 22
Email:
info@triglav.ba
info@lo.co.me
info@lovcenzivot.me
info@triglav.mk
Website
www.triglav.ba
www.lo.co.me
www.lo.co.me
www.triglav.mk
Activity
Insurance
Insurance
Insurance
Insurance
Equity stake of Zavarovalnica
Triglav/the Triglav Group
- /97.78%
- /99.07%
- /99.07%
- /82.01%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
- /98.87%
- /99.07%
- /99.07%
- /82.01%
Share capital
EUR 10,861,337
EUR 10,459,925
EUR 3,700,000
EUR 3,008,425
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav
Group
- /EUR 10,620,215
- /EUR 10,362,648
- /EUR 3,665,590
- /EUR 2,467,209
* Note: Company details are provided for the parent company and subsidiaries of the Triglav Group.
439
Triglav Osiguruvanje Život a.d., Skopje
Triglav Osiguranje a.d., Banja Luka
Address
Bulevar 8-mi Septemvri br. 18, Skopje,
Severna Makedonija
Ulica Prvog krajiškog korpusa 29,
Banja Luka, Bosna in Hercegovina
Phone
++ 389 (2) 510 22 01
++ 387 (51) 215 262
Email
info@triglavzivot.mk
info@triglavrs.ba
Website
www.triglavzivot.mk
www.triglavrs.ba
Activity
Insurance
Insurance
Equity stake of Zavarovalnica
Triglav/the Triglav Group
- /97.43%
- /97.78%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
- /97.43%
- /100.00%
Share capital
EUR 7,002,583
EUR 4,777,227
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav
Group
- /EUR 6,822,617
- /EUR 4,671,173
Asset management
Triglav Skladi d.o.o.
Triglav, pokojninska družba d.d.
Triglav, Upravljanje nepremičnin d.o.o.
Triglav penzisko društvo a.d., Skopje
Address:
Dunajska cesta 20, Ljubljana,
Slovenija
Dunajska cesta 22, Ljubljana,
Slovenija
Dunajska cesta 22,
Ljubljana, Slovenija
Bulevar 8-mi Septemvri br. 18, Skopje,
Severna Makedonija
Phone:
++ 386 (1) 300 73 00, 080 10 19
++ 386 (1) 47 00 840, 080 555 555
++ 386 (1) 47 44 440
++ 389 (2) 510 21 90, (2) 551 50 10
Email:
info@triglavskladi.si
info@triglav.si
info@triglav-upravljanje.si
info@triglavpenzisko.mk
Website:
www.triglavskladi.si
www.triglavpokojnine.si
www.triglav-upravljanje.si
www.triglavpenzisko.mk
Activity:
Mutual fund management
Pension funds
Asset management
Pension funds
Equity stake of Zavarovalnica Triglav/the
Triglav Group
100.00%/100.00%
100.00%/100.00%
100.00%/100.00%
100.00%/100.00%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
100.00%/100.00%
100.00%/100.00%
100.00%/100.00%
100.00%/100.00%
Share capital
EUR 563,345
EUR 25,756,808
EUR 3,160,113
EUR 7,356,000
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav Group
EUR 563,345/EUR 563,345
EUR 25,756,808/EUR 25,756,808
EUR 3,160,113/EUR 3,160,113
EUR 7,356,000/EUR 7,356,000
440
Triglav Fondovi d.o.o., Sarajevo
Triglav upravljanje nekretninama
d.o.o., Zagreb
Triglav upravljanje nekretninama
d.o.o., Podgorica
Triglav upravljanje nekretninama
d.o.o., Sarajevo
Address
Ul. Mehmed paše Sokolovića br. 15,
Sarajevo, Bosna in Hercegovina
Ulica Josipa Marohnića 1/1, Zagreb,
Hrvaška
Džordža Vašingtona 44, Podgorica,
Črna gora
Branilaca Sarajeva 45, Sarajevo, Bosna
in Hercegovina
Phone
++387 33 277 270
++ 386 31 370 370
++ 386 31 370 370
++ 387 (0)61 182 345
Email
info@triglavfondovi.ba
Website
www.triglavfondovi.ba
Activity
Management of financial funds
Asset management
Asset management
Asset management
Equity stake of Zavarovalnica Triglav/the
Triglav Group
- /63.58%
- /100.00%
- /100.00%
- /100.00%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
- /63.20%
- /100.00%
- /100.00%
- /100.00%
Share capital
EUR 639,118
EUR 514,673
EUR 1,413,381
EUR 998,710
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav Group
- /EUR 404,351
- /EUR 514,673
- /EUR 1,413,381
- /EUR 998,710
Triglav upravuvanje so nedvižen imot
DOOEL, Skopje
Address
Dame Gruev br. 8, Skopje, Severna
Makedonija
Phone
++ 386 31 370 370
Email
Website
Activity
Asset management
Equity stake of Zavarovalnica Triglav/the
Triglav Group
- /100.00%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
- /100.00%
Share capital
EUR 621,000
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav Group
- /EUR 621,000
441
Other
Triglav INT d.o.o.
Triglav zdravje asistenca d.o.o.
Triglav Svetovanje d.o.o.
Triglav Avtoservis d.o.o.
Address
Dunajska cesta 22, Ljubljana, Slovenija
Dunajska cesta 22, Ljubljana, Slovenija
Ljubljanska cesta 86, Domžale,
Slovenija
Verovškova 60b, Ljubljana, Slovenija
Phone
++ 386 (1) 430 95 34
++ 386 (1) 893 84 40
++ 386 (1) 724 66 50, 080 15 10
++ 386 (1) 580 68 72
Email
triglavint@triglav-int.si
info@tza.si
info@triglav-svetovanje.si
info@triglav-avtoservis.si
Website
www.triglav-int.si
www.tza.si
www.triglav-svetovanje.si
www.triglav-avtoservis.si
Activity
Holding company
Other human health activities
Insurance agency activities
Maintenance and repair of motor
vehicle
Equity stake of Zavarovalnica Triglav/the
Triglav Group
100.00% /100.00%
- /100.00%
100.00%/100.00%
100.00%/100.00%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
100.00%/100.00%
- /100.00%
100.00%/100.00%
100.00%/100.00%
Share capital
EUR 77,180,734
EUR 7,500
EUR 8,763
EUR 43,663
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav Group
EUR 77,180,734 /EUR 77,180,734
- /EUR 7,500
8,763 /EUR 8,763
43,663 /EUR 43,663
Lovćen auto d.o.o., Podgorica
Autocentar BH d.o.o., Sarajevo
Sarajevostan d.o.o., Sarajevo
Triglav Savjetovanje d.o.o., Sarajevo
Address
Novaka Miloševa 6/2, Podgorica, Črna
gora
Džemala Bijedića 165b, Sarajevo,
Bosna in Hercegovina
Bulevar Meše Selimovića 12, Sarajevo,
Bosna in Hercegovina
Dolina 8, Sarajevo, Bosna in
Hercegovina
Phone
++ 382 (69) 810 005
++ 387 (33) 715 935
++ 387 (33) 276 690
++ 387 (3) 361 81 06
Email
registracija@lovcen-auto.me
info@autocentarbh.ba
sastan@sarajevostan.com.ba
info@triglav-savjetovanje.ba
Website
www.lovcen-auto.me
www.autocentarbh.ba
www.sarajevostan.com.ba
www.triglav-savjetovanje.ba
Activity
Roadworthiness tests and vehicle
registration
Roadworthiness tests and vehicle
registration
Asset management
Insurance ageny activities
Equity stake of Zavarovalnica Triglav/the
Triglav Group
- /99.07%
- /97.78%
- /90.95%
- /97.78%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
- /99.07%
- /98.87%
- /91.97%
- /98.87%
Share capital
EUR 12,850,000
EUR 1,376,952
EUR 1,182,323
EUR 153,388
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav Group
- /EUR 12,730,495
- /EUR 1,346,384
- /EUR 1,075,323
- /EUR 149,983
442
Triglav Savetovanje d.o.o., Belgrade in
liquidation
Triglav Savjetovanje d.o.o., Zagreb, in
liquidation
Triglav International d.o.o., Belgrade
Eskulap d.o.o.
Address
Zelengorska 1g, Beograd, Srbija
Sarajevska cesta 60, Zagreb, Hrvaška
Milutina Milankovića 7a, Beograd,
Srbija
Redelonghijeva ulica 12, Ljubljana,
Slovenija
Phone
++ 381 (1) 165 58 497
++ 385 (1) 344 41 22
++386 (1) 281 13 76, (1) 893 84 51
Email
office@triglav-savetovanje.rs
info@triglav-savjetovanje.hr
info-int@triglav.rs
eskulap@tza.si
Website
www.triglav-savetovanje.rs
www.triglav-savjetovanje.hr
www.tza.si/webapp/tza/pediatrija
Activity
Insurance ageny activities
Insurance ageny activities
Holding company
Other human health activities
Equity stake of Zavarovalnica Triglav/the
Triglav Group
- /100.00%
- /100.00%
- /100.00%
- /100.00%
Share of voting rights of Zavarovalnica
Triglav/the Triglav Group
- /100.00%
- /100.00%
- /100.00%
Share capital
EUR 30,119
EUR 973,572
EUR 513,611
EUR 21,000
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav Group
- /EUR 30,119
- /EUR 973,572
- /EUR 513,611
- /EUR 21,000
Vse bo v redu, zavod Zavarovalnice Triglav za
družbeno odgovorne aktivnosti
Address
Miklošičeva cesta 19, Ljubljana, Slovenija
Phone
++386 (1) 47 47 518
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%
Share capital
EUR 100,000
Nominal value of equity stake held by
Zavarovalnica Triglav/the Triglav Group
EUR 100,000/EUR 100,000
443
Appendix 2: Business network of the Triglav Group
In 2024, the Triglav Group accelerated the expansion of its well-developed and widely accessible
business network, adopting a multi-channel approach and hybrid business models. Strategic
partnerships and collaborations with contractual sales partners were strengthened, alongside
enhancements to online and assistance services, as well as digital underwriting options.
Additionally, since October 2023, the Group has been operating through a branch in Greece.
The Group's insurance sales network consists of insurance agents, sales clerks and employees at
its own points of sale. In 2024, the external sales network in Slovenia included 437 outsourcers.
In the non-life insurance segment, the Group successfully partners with car dealerships, leasing
companies, roadworthiness test providers, insurance agencies, travel agencies, insurance
brokerage and agency companies, and consumer electronics stores. In the life insurance
segment, the Group works with insurance agency companies, insurance brokerage companies
and banks providing insurance agency services. Before entering into a business relationship with
a partner, a due diligence and risk assessment with respect to personal data processing is carried
out.
The Group has an extensive own and external sales network across its subsidiaries in the Adria
region, collaborating with over 1,640 external partners in these markets. Cooperation with
brokers, agencies and other partners was strengthened, while the bank sales channel was
reduced. The largest number of partnerships is in Serbia, where the number of partners has
increased further. In Croatia, both the own and external sales networks were strengthened. In
Bosnia and Herzegovina, the partners Triglav Osiguranje, Banja Luka were merged into the
Triglav Osiguranje Sarajevo business network. In North Macedonia, the size of the own sales
network was maintained, while partnerships in alternative sales channels were expanded. The
sales network in Montenegro remained stable in 2024.
In claims settlement, the size of the partner network was adjusted to meet the demand for
existing and new products. Application support for assistance contractors was updated,
enabling the automated capture of various types of vehicle damage and the automatic
assessment of repair feasibility. Processes were modernised, and new vehicle valuation
equipment was developed to handle mass hail claims.
Insurance
▪
Zavarovalnica Triglav d.d., Ljubljana
–
registered office
Regional centres:
▪
Central Slovenia region
▪
Gorenjska region
▪
West region
▪
South region
▪
North region
▪
East region
Zavarovalnica Triglav's existing sales network is available at
www.triglav.si/uporabno/poslovalnice.
▪
Zavarovalnica Triglav d.d., Branch Greece, Athens
▪
Pozavarovalnica Triglav Re d.d., Ljubljana – registered office
▪
Triglav Osiguranje d.d., Zagreb – registered office
, the list of branch offices at
www.triglav.hr/korisno/poslovnice-i-kontakti
▪
Triglav Osiguranje a.d.o., Belgrade – registered office
, the list of branch offices at
www.triglav.rs/korisno/mreza-poslovnica
444
▪
Lovćen Osiguranje a.d., Podgorica – registered office
, the list of branch offices at
www.lo.co.me/korisne-informacije-i-kontakt/filijale-i-kontakti
▪
Triglav Osiguranje d.d., Sarajevo – registered office
, the list of branch offices at
www.triglav.ba/korisno/poslovnice-i-kontakti
▪
Triglav Osiguranje a.d., Banja Luka – registered office
, the list of branch offices at
www.triglavrs.ba/korisno/filijale-i-kontakti
▪
Triglav Osiguruvanje a.d., Skopje – registered office
, the list of branch offices at
www.triglav.mk/korisno/lokacii-i-kontakti
▪
Triglav Osiguruvanje Život a.d., Skopje – registered office
▪
Lovćen životna osiguranja a.d., Podgorica – registered office
Asset management
▪
Triglav Skladi d.o.o.
,
Ljubljana – registered office
, the list of branch offices at
www.triglavskladi.si/obiscite-nas
▪
Triglav, pokojninska družba d.d. – registered office
▪
Triglav, Upravljanje nepremičnin d.o.o., Ljubljana – registered office
▪
Triglav Fondovi d.o.o., Sarajevo – registered office
▪
Triglav penzisko društvo a.d., Skopje – registered office
▪
Triglav upravljanje nekretninama d.o.o., Zagreb – registered office
▪
Triglav upravljanje nekretninama d.o.o., Podgorica – registered office
▪
Triglav upravljanje nekretninama d.o.o., Sarajevo – registered office
▪
Triglav upravuvanje so nedvižen imot DOOEL, Skopje – registered office
Other
▪
Triglav INT, holdinška družba d.o.o., Ljubljana – registered office
▪
Triglav zdravje asistenca d.o.o., Ljubljana – registered office
▪
Triglav Svetovanje d.o.o., Domžale – registered office
▪
Triglav Savjetovanje d.o.o., Sarajevo – registered office
▪
Triglav Savjetovanje d.o.o., Zagreb, in liquidation – registered office
▪
Triglav Savetovanje d.o.o., Belgrade, in liquidation – registered office
▪
Triglav Avtoservis d.o.o., Ljubljana – registered office
▪
Lovćen auto d.o.o., Podgorica – registered office
, the list of branch offices at
lovcen-
auto.me/lokacije
▪
Autocentar BH d.o.o., Sarajevo – registered office
, the list of branch offices at
www.autocentarbh.ba/poslovna-mreza
▪
Sarajevostan d.o.o., Sarajevo – registered office
▪
Triglav International d.o.o., Belgrade – registered office
▪
Eskulap d.o.o., Ljubljana – registered office
445
Appendix 3: Glossary of terms
Inward reinsurance
The activity of a reinsurance company to assume from other insurance companies and
reinsurance companies the portion of the risk which exceeds their retention limits.
Accumulated profit
The legally justified amount of net profit for the year (net earnings for the year), net profit
brought forward (retained earnings) and reserves from profit, which in accordance with the
decision of the insurance company's management board is first used to increase reserves (legal
reserves, treasury share reserves and treasury shares, and statutory reserves) and other reserves
according to the supervisory board's decision. The remainder, referred to as accumulated profit,
is allocated by the general meeting of shareholders to dividends, other reserves, carry-forwards
and other purposes.
Cedent
A party to a reinsurance contract who passes a portion of their assumed risks to reinsurance. The
recipient of those risks is usually an insurance company
.
To cede means to pass a portion of
assumed risk to a reinsurance company.
Total return on share
The sum of growth in the share price in the accounting period and the dividend yield as at the
reporting date.
Net earnings per share
The ratio of net earnings in the accounting period which refers to the ordinary shareholders of
the controlling company to the weighted average number of ordinary shares less ordinary shares
held by Zavarovalnica Triglav or the Triglav Group members.
Free float
Shares held by shareholders who own 5% or less of shareholders' equity.
Dividend yield
The ratio of gross dividends per share to price per share on a given day.
Economic value distributed
Comprises claims incurred, net reinsurance service result, finance expenses from financial and
insurance contracts, other expenses, dividend payments, labour costs, tax expense and
community investment (prevention, donations, sponsorships).
Supplemental insurance/rider
Insurance that is underwritten as a supplement to another (precisely defined) insurance and that
cannot be underwritten independently.
Investment return/investment result
A difference between income and expenses from financial investments. Income from financial
investments comprises income from investments in associates and income from investments
(interest income, gains on disposal of investments and other income from investments).
Expenses from financial investments comprise expenses from investments in associates and
expenses from investments (impairment of investments, losses on the disposal of investments
446
and other expenses from investments). Return on own investment portfolio does not include
unit-linked life insurance assets and financial investments from financial contracts.
Endowment (for life insurance products with a savings component)
An insured event in which the insurance company pays the sum insured, together with bonuses
after the insured survives the agreed insurance period.
Financial investments
On initial recognition, a financial investment is classified into one of the following measurement
categories:
▪
financial investments measured at fair value through profit or loss (FVTPL),
▪
financial investments measured at amortised cost (AC),
▪
financial assets measured at fair value through other comprehensive income (FVOCI).
Financial contracts
Contracts that take the form of an insurance contract but do not meet the definition of an
insurance contract under IFRS 17. Distinct investment components of pension insurance
contracts are also treated as financial contracts because these contracts do not bear insurance
risk during the accumulation (savings) phase.
Capitalisation
The reduction of sums insured in life insurance with a savings component, which is carried out
if the policyholder stops paying the premium. In addition to standard criteria for setting the
premium (gender and age of the insured), the amount of the sum insured depends primarily on
the number of paid-in premiums and the remaining insurance term.
Book value per share
The ratio of shareholders' equity to the number of outstanding shares as at the reporting date.
Onerous contracts
Non-profitable insurance contracts where all cash flows arising from an insurance contract
together represent a negative net present value of the cash flow.
Composite (or universal, general) insurance company
An insurance company that conducts non-life and life insurance business.
Gross/net
In the insurance industry, the terms gross and net typically relate to quantities and ratios before
and after the deduction for reinsurance.
Own Risk and Solvency Assessment (ORSA)
The insurance company's own assessment of the risks to which it is exposed in the course of its
business, including the risks to which it may be exposed in the future, and an assessment of the
adequacy of own funds available to cover them.
Measurement of insurance contracts under MSRP 17
The following methods are used to measure insurance contracts:
▪
The general model or Building Block Approach (BBA) is the default model used for all long-
term insurance contracts.
▪
The simplified approach or Premium Allocation Approach (PAA) is used for the measurement
of insurance contracts with short-term coverage (usually applicable to non-life insurance
policies with short-term coverage).
447
▪
The Variable Fee Approach (VFA) is typically applied to life insurance contracts with direct
participation features (unit-linked contracts).
Operating expenses
Operating expenses are recognised as original expenses by nature. They are split into
attributable and non-attributable costs to insurance contracts. Attributable costs comprise
acquisition costs, claim handling expenses, management costs and other administrative costs
and, as such, are attributed to the individual groups of insurance contracts.
Surrender
The termination of a life insurance policy that results in the payout of the value thereof (saved
assets and mathematical provisions less the costs incurred by the insurance company).
Contractual Service Margin (CSM)
Comprises the unearned profit that the company expects to earn from insurance contracts. It is
calculated based on expected future cash flows (inflows and outflows), taking into account the
time value of money and risk adjustment for non-financial risk.
Share average daily turnover
The ratio of the total value of share turnover in the accounting period to the number of trading
days in that period.
Reinsurance
Reinsurance is the business of accepting risks ceded by an insurance or reinsurance company.
Prevention
The portion of non-life insurance premium that an insurance company allocates to prevention
activities to mitigate future risks.
Associate
A company in which another entity directly or indirectly holds between 20% and 50% of voting
rights, and thus has a significant effect on capital, but does not control that company.
Insurance revenue
Revenue from insurance contracts issued under IFRS 17 that do not include a savings component.
Risk Adjustment for non-financial risk (RA)
Relates to the compensation set by the insurance company because it bears uncertainty about
the amount and timing of the cash flows that arises from non-financial risk.
Risk profile
A risk profile is a quantitative assessment of the risks to which an insurance company is exposed.
In order to adequately identify the risk profile, processes are established, and risk exposure and
measurements are defined for every type of risk for the purpose of assessing the extent thereof.
Deferred Acquisition Costs (DAC)
Costs that an insurance company incurs in the acquisition of new insurance contracts are
deferred evenly over the entire term of those contracts for accounting purposes. Thus, the one-
time cost incurred when insurance is underwritten is deferred evenly over the entire insurance
term.
448
Available own funds
Available own funds are used to cover the solvency capital requirement and represent the
surplus of assets over liabilities, plus subordinated liabilities, taking into account other
regulatory, insurer-specific adjustments.
Reserves from profit
Comprise other reserves from profit, legal and statutory reserves, contingency reserves and
credit risk equalisation reserves.
Solvency II
The European Union's regulatory framework in the field of insurance, which defines the
calculation of capital adequacy and the governance of and reporting by insurance companies. An
insurance company's available own funds must be at least equal to the assessment of assumed
risks, as set as out in the regulatory framework.
Coinsurance
A way to equalise risks, where assumed risks are split or spread among several insurance
companies. The proportion of risk assumed by an individual insurance company may vary and
represents the basis for determining an individual insurance company's share of the premium
and potential loss. Each insurance company is jointly and severally liable to the insured, i.e. for
the full amount of benefits and/or claims from an insurance contract, irrespective of the
proportion of risk it assumes.
Contractual service margin sustainability
The contractual service margin sustainability shows the ratio of the contractual service margin
(CSM) of new contracts to the release of the contractual service margin to profit or loss.
Market capitalisation
The value of a company calculated as the product of the closing share price and the number of
shares on the reporting date.
Economic value generated
Comprises total revenue and finance income from financial and insurance contracts.
Comprehensive income
Comprehensive income consists of two elements. The first element comprises net earnings in
the accounting period from the statement of profit or loss. The second element comprises other
comprehensive income, which discloses income and expense items that are not recognised in
the statement of profit or loss, but affect the balance of shareholders' equity. These income and
expenses arise mainly from the revaluation of assets to fair value and from the financial effects
of the valuation of insurance and reinsurance contracts.
Economic value retained
The difference between economic value generated and economic value distributed.
Solvency Capital Requirement (SCR)
The amount of an insurance company's capital that it needs to remain solvent for at least one
year with a 99.5% probability calculated in accordance with Solvency II. It is calculated according
to a statutory standard formula that takes into account all material measurable risks:
underwriting, market, credit and operational risks.
449
Insurance density (premium per capita)
The ratio of gross written premium to the number of inhabitants of a particular country.
Insurance penetration
Insurance premium as a proportion of gross domestic product (GDP).
Insurance premium
The amount set out in an insurance contract that the policyholder pays to the insurance
company. Insurance premium covers the payment of current and future claims, the costs of
prevention activities and the insurance company's operating expenses.
Insurance class
Various insurance types that are grouped in accordance with the Slovenian Insurance Act based
on the main types of risks they cover. The Slovenian Insurance Act defines 24 different insurance
classes.
Insurance contract
A contract is defined as an insurance contract when, at the time of conclusion, significant
insurance risk is accepted from the policyholder.
450
Appendix 4: Alternative performance measures
ALTERNATIVE PERFORMANCE MEASURE
DEFINITION OF CALCULATION
EXPLANATION OF USE AND LIMITATIONS
Total business volume
Comprises gross written premium and other income.
A measure broader than gross written premium, it is useful for comparison between product
segments, regions and, to a limited extent, companies. However, it is not suitable for disclosing
profitability, as it is influenced by fluctuations that are not directly related to the way the
business is conducted, such as price changes, changes in foreign exchange rates, and changes in
the business network and products (e.g. acquisitions, spin-offs, transfers).
Total revenue
Comprises insurance revenue, asset management
income, other operating income and other income
(under IFRS 17).
This measure is designed to compare product segments, regions and, to a limited extent,
companies. However, it is not suitable for disclosing profitability, as it is influenced by
fluctuations that are not directly related to the way the business is conducted, such as price
changes, changes in foreign exchange rates, and changes in the business network and products
(e.g. acquisitions, spin-offs, transfers).
Return on equity (ROE)
The ratio of net earnings for the period to the average
balance of shareholders' equity in the period.
It enables annual comparability of profitability data and provides a quick annual assessment.
Rate of return on investment
The ratio of return on investment to the average
balance of financial investments. Own investment
portfolio includes financial investments, investments
in associates, loans granted, bank deposits and other
financial investments, but excludes unit-linked life
insurance assets, financial investments from financial
contracts and investment property.
This measure is suitable for monitoring the success of management and profitability of financial
investment management.
However, it is influenced by external factors that companies can manage through other
processes (such as currency risk and interest rate risk management) and that are not directly
reflected in the result of this measure, such factors related to existing agreements or
commitments in cases of acquisitions, mergers and similar transactions.
New business margin/new business margin of
life insurance/new business margin of the Life
segment
The ratio of the sum of the contractual service margin
(CSM) of new contracts and the loss of onerous
contracts to the present value of new premium.
It measures the profitability of new business in the insurance industry.
However, the limitation of its use depends on actuarial estimates and assumptions, which are
based on historical or current data and do not account for potential future changes, such as
shifts in client behaviour or the country's development.
Capital adequacy ratio
The ratio of available own funds eligible for covering
the solvency capital requirement to the solvency
capital requirement.
It is a legal obligation and the required practice of due diligence.
Combined ratio/CoR Non-Life & Health
The sum of the expense ratio and claims ratio.
It measures the profitability of contracts in the Non-Life, Health, or both segments, excluding
investment returns. A value of less than 100% indicates profit from a particular segment.
However, this measure does not reveal the absolute values of the calculation and, therefore,
does not directly explain the underlying reasons for the values.
CSM of new contracts/Total CSM
The ratio of the sum of the contractual service margin
(CSM) of new contracts and the loss of onerous
contracts to the present value of new premium.
It is useful for monitoring the future effects of new business.
Caution is required when assessing it during the year, as business events do not necessarily
follow the dynamics of the previous year. Similarly, the impact of any one-off or non-recurring
events should also be considered.
451
ALTERNATIVE PERFORMANCE MEASURE
DEFINITION OF CALCULATION
EXPLANATION OF USE AND LIMITATIONS
Gross written premium
The sum of all premiums that the insurance company
charges to policyholders following the underwriting or
renewal of policies in the accounting period.
Gross written premium is primarily useful as a measure of business growth for comparing
various regions and segments.
Gross written premium does not provide information on the profitability of the company/group
and should always be considered alongside IFRS measures of revenue and profitability (e.g. net
profit or loss for the period).
Gross claims paid
Benefits and claims calculated for all or a portion of
settled claims in the accounting period, including
claim settlement costs.
This measure shows the actual calculated costs from claims during the reporting period. It is
useful for comparison over time and across various segments, though it is subject to the impact
of claims inflation.
Claims incurred
Comprise insurance service expenses for claims,
change in future cash flows, change in experience
correction, loss of onerous contracts, allocation to
onerous contracts and the remaining insurance
expenses.
The purpose of this measure is to show the estimated effect of claims on the company's current
and future operations.
The estimate incorporates actuarial assumptions, which may differ due to actual future events.
Expense ratio
The ratio of the sum of attributable and non-
attributable costs, net other insurance expenses less
other insurance income to insurance revenue.
The expense ratio is a component of the combined ratio and plays a crucial role in explaining the
cost-effectiveness impact.
However, as it does not provide absolute values in its calculation, it does not directly explain the
underlying reasons for its value.
Net investment result
Comprises the investment result, the financial result
from insurance contracts, gains and losses on
investments in associates and the change in the
provisions for not achieving the yield on supplemental
voluntary pension insurance.
This measure should be assessed in conjunction with the investment result in accordance with
IFRS, while also considering the broader context of financial investment markets.
However, it is not suitable for predicting future business performance.
Insurance operating result/result from
insurance operations
Comprises insurance revenue less claims incurred and
acquisition and administrative costs, including non-
attributable costs, net reinsurance service result and
net other insurance income/expenses.
This measure is suitable for analysing business performance of insurance operations, as it
improves the comparability of profitability over time.
Additionally, this measure is subject to fluctuations influenced by factors beyond business
operations, such as foreign exchange rates.
Result from non-insurance operations
The sum of the categories that are not included in the
insurance operating result and the net investment
result.
This measure is suitable for analysing the performance of non-insurance operations.
Additionally, this measure is subject to fluctuations influenced by factors beyond the
performance of analysed business operations, such as foreign exchange rates.
Assets under management (AUM)
Comprise own investment portfolio, assets from the
pension insurance savings funds, unit-linked insurance
assets, assets in mutual funds and discretionary
mandate assets, and alternative investments.
It shows the scope and effectiveness of asset management; however, it is important to consider
its limitations, including the impact of potential takeovers, disposals or mergers, as well as
fluctuations in currency rates.
Claims ratio
The ratio of the sum of claims, change in future cash
flows, change in experience correction, change in
onerous contracts and the reinsurance result to
insurance revenue.
It reflects both the realised and estimated future effects of loss events on insurance revenue and
serves as an appropriate measure for monitoring the impact of realised loss events within a
given period. It is also useful for comparison across segments and regions.
However, this measure does not provide absolute values or reflect the overall performance of
the company's operations. Additionally, it is influenced by external factors, such as inflation.
Appendix 5: The list of ESRS disclosure requirements included in the sustainability
statement
157
The list of material disclosure requirements
Page
ESRS 2 – General disclosures
BP-1 – General basis for preparation of the sustainability statement
120−121
BP-2 – Disclosures in relation to specific circumstances
121−122, 148−149
GOV-1 – The role of the administrative, management and supervisory bodies
123−125, 181−182
GOV-2 – Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies
123−125, 139−140
GOV-3 – Integration of sustainability-related performance in incentive schemes
126−127
GOV-4 – Statement on due diligence
127
GOV-5 – Risk management and internal controls over sustainability reporting
284
SBM-1 – Strategy, business model and value chain
129, 131, 135, 154, 175
SBM-2 – Interests and views of stakeholders
125, 135, 136−138, 139
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
122, 125, 142−144, 153
IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities
121−122, 123−124, 139−141
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
145, 439−442, 442−449
E1 – Climate change
ESRS 2 GOV-3-E1 – Integration of sustainability-related performance in incentive schemes
125−127
E1-1 – Transition plan for climate change mitigation
146−147, 156−165
ESRS 2 SBM-3-E1 – Material impacts, risks and opportunities and their interaction with strategy and business model
125, 153−154
ESRS 2 IRO-1-E1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities
153−154
E1-2 – Policies related to climate change mitigation and adaptation
146
E1-3 – Actions and resources in relation to climate change policies
146−147
E1-4 – Targets related to climate change mitigation and adaptation
146−148
E1-5 – Energy consumption and mix
150
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions
147−149
E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities
154
S1 – Own workforce
ESRS 2 S1.SBM-2 – Interests and views of stakeholders
136−138
ESRS 2 S1.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
142−144, 173
S1-1 – Policies related to own workforce
173, 177, 178, 179, 180
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts
173−174
157
ESRS 2 IRO-2_02.
453
The list of material disclosure requirements
Page
S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns
180
S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related
to own workforce, and effectiveness of those actions
173−174, 177−178, 178−180
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
180−182
S1-6 – Characteristics of the undertaking's employees
175, 176
S1-7 – Characteristics of non-employees in the undertaking’s own workforce
176
S1-9 – Diversity metrics
181
S1-10 – Adequate wages
182−183
S1-12 – Persons with disabilities
182
S1-13 – Training and skills development metrics
177, 178
S1-14 – Health and safety metrics
179
S1-15 – Work-life balance metrics
184
S1-16 – Remuneration metrics (pay gap and total remuneration)
183
S1-17 – Incidents, complaints and severe human rights impacts
180
S3 – Affected communities
ESRS 2 S3.SBM-2 – Interests and views of stakeholders
136−138
ESRS 2 S3.SBM-3 – Material impacts, risks and opportunities and their interaction of with strategy and business model
142−144
S3-1 – Policies related to affected communities
189
S3-2 – Processes for engaging with affected communities about impacts
134, 190
S3-4 – Taking action on material impacts on affected communities, and approaches to mitigating material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
190, 192−193
S4 – Consumers and end-users
ESRS 2 S4.SBM-2 – Interests and views of stakeholders
136−138
ESRS 2 S4.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
136, 142−144, 154−156, 184,
186
S4-1 – Policies related to consumers and end-users
184, 185
S4-2 – Processes for engaging with consumers and end-users about impacts
184
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
185, 188
S4-4 – Taking action on material impacts on consumers and end- users, and approaches to mitigating material risks and pursuing material
opportunities related to consumers and end-users and effectiveness of those actions
185, 188
S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
186
G1 – Business conduct
ESRS 2 G1.GOV-1 – The role of the administrative, supervisory and management bodies
123−125
G1-1 – Business conduct policies and corporate culture
197−198
G1-2 – Management of relationships with suppliers
200–201
G1-3 – Prevention and detection of corruption and bribery
198−200
454
The list of material disclosure requirements
Page
G1-4 – Incidents of corruption or bribery
200
G1-6 – Payment practices
201
455
Appendix 6: The list of datapoints in cross-cutting and topical standards that derive from
other EU legislation
158
Disclosure ESRS 2 IRO-2, paragraph 56, and ESRS 2, Appendix B
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS 2 GOV-1
Board's gender diversity, paragraph 21 (d)
Indicator number 13 of
Table #1 of Annex I
Commission
Delegated Regulation
(EU) 2020/1816,
Annex II
181
ESRS 2 GOV-1
Percentage of board members who are independent,
paragraph 21(e)
Delegated Regulation
(EU) 2020/1816,
Annex II
Not material
124
ESRS 2 GOV-4
Statement on due diligence, paragraph 30
Indicator number 10 Table
#3 of Annex I
125
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities,
paragraph 40(d)i
Indicators number 4 Table
#1 of Annex I
Article 449a of Regulation (EU) No
575/2013;
Commission Implementing Regulation
(EU) 2022/2453, Table 1: Qualitative
information on Environmental risk and
Table 2: Qualitative information on
Social risk
Delegated Regulation
(EU) 2020/1816,
Annex II
Not material
154
ESRS 2 SBM-1
Involvement in activities related to chemical
production, paragraph 40(d)ii
Indicator number 9 Table
#2 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II
Not material
154
ESRS 2 SBM-1
Involvement in activities related to controversial
weapons, paragraph 40(d)iii
Indicator number 14 Table
#1 of Annex I
Delegated Regulation
(EU) 2020/1818,
Article 12(1)
Delegated Regulation
(EU) 2020/1816,
Annex II
Not material
154
158
ESRS 2 IRO-2_01.
456
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS 2 SBM-1
Involvement in activities related to cultivation and
production of tobacco, paragraph 40(d)iv
Delegated Regulation
(EU) 2020/1818,
Article 12(1)
Delegated Regulation
(EU) 2020/1816,
Annex II
Not material
154
ESRS E1-1
Transition plan to reach climate neutrality by 2050,
paragraph 14
Regulation (EU)
2021/1119,
Article 2(1)
146
ESRS E1-1
Undertakings excluded from Paris-aligned
Benchmarks, paragraph 16(g)
Article 449a of Regulation (EU) No
575/2013;
Commission Implementing Regulation
(EU) 2022/2453, Template 1: Banking
book – Indicators of potential climate
change transition risk: credit quality of
exposures by sector, emissions and
residual maturity
Delegated Regulation
(EU) 2020/1818,
Article
article 12(1), points (d)
to (g), and Article 12(2)
Not material
/
ESRS E1-4
GHG emission reduction targets, paragraph 34
Indicator number 4 Table
#2 of Annex I
Article 449a of Regulation (EU) No
575/2013;
Commission Implementing Regulation
(EU) 2022/2453, Template 3: Banking
book – Indicators of potential climate
change transition risk: alignment
metrics
Delegated Regulation
(EU)
2020/1818, Article 6
146
ESRS E1-5
Energy consumption from fossil sources disaggregated
by sources (only high climate impact sectors),
paragraph 38
Indicator number 5 Table
#1 and Indicator n. 5 Table
#2 of Annex I
Not material
/
ESRS E1-5
Energy consumption and mix paragraph, 37
Indicator number 5 Table
#1 of Annex I
150
ESRS E1-5
Energy intensity associated with activities in high
climate impact sectors, paragraphs 40 to 43
Indicator number 6 Table
#1 of Annex I
Not material
/
457
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions,
paragraph 44
Indicators number 1 and 2
Table #1 of Annex I
Article 449a of Regulation (EU) No
575/2013;
Commission Implementing Regulation
(EU) 2022/2453, Template 1: Banking
book – Indicators of potential climate
change transition risk: credit quality of
exposures by sector, emissions and
residual maturity
Delegated Regulation
(EU) 2020/1818,
Articles 5(1), 6 and
8(1)
147
ESRS E1-6
Gross GHG emissions intensity, paragraphs 53 to 55
Indicators number 3 Table
#1 of Annex I
Article 449a of Regulation (EU) No
575/2013;
Commission Implementing Regulation
(EU) 2022/2453, Template 3: Banking
book – Indicators of potential climate
change transition risk: alignment
metrics
Delegated Regulation
(EU)
2020/1818, Article
8(1)
147
ESRS E1-7
GHG removals and carbon credits, paragraph 56
Regulation (EU)
2021/1119,
Article 2(1)
Not material
/
ESRS E1-9
Exposure of the benchmark portfolio to climate-related
physical risks, paragraph 66
Delegated Regulation
(EU) 2020/1818,
Appendix II; Delegated
Regulation (EU)
2020/1816, Appendix
II
154
ESRS E1-9
Disaggregation of monetary amounts by acute and
chronic physical risk paragraph 66(a)
ESRS E1-9
Location of significant assets at material physical risk
paragraph 66(c)
Article 449a of Regulation (EU) No
575/2013;
Commission Implementing Regulation
(EU) 2022/2453, paragraphs 46 and 47;
Template 5: Banking book – Indicators of
potential climate change physical risk:
exposures subject to physical risk
/
458
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS E1-9
Breakdown of the carrying value of its real estate
assets by energy-efficiency classes paragraph 67(c)
Article 449a of Regulation (EU) No
575/2013;
Commission Implementing Regulation
(EU) 2022/2453, paragraph 34; Template
2: Banking book – Indicators of potential
climate change transition risk: loans
collateralised by immovable property –
energy efficiency of the collateral
154
ESRS E1-9
Degree of exposure of the portfolio to climate- related
opportunities, paragraph 69
Delegated Regulation
(EU) 2020/1818,
Appendix II
154
ESRS E2-4
Amount of each pollutant listed in Annex II of the E-
PRTR Regulation (European Pollutant Release and
Transfer Register) emitted to air, water and soil,
paragraph 28
Indicator number 8 Table
#1 of Annex I Indicator
number 2 Table #2 of
Annex I Indicator number
1 Table #2 of Annex I
Indicator number 3 Table
#2 of Annex I
Not material
/
ESRS E3-1
Water and marine resources, paragraph 9
Indicator number 7 Table
#2 of Annex I
Not material
/
ESRS E3-1
Dedicated policy, paragraph 13
Indicator number 8 Table
2 of Annex I
Not material
/
ESRS E3-1
Sustainable oceans and seas, paragraph 14
Indicator number 12 Table
#2 of Annex I
Not material
/
ESRS E3-4
Total water recycled and reused, paragraph 28(c)
Indicator number 6.2
Table #2 of Annex I
Not material
/
ESRS E3-4
Total water consumption in m
3
per net revenue on
own operations, paragraph 29
Indicator number 6.1
Table #2 of Annex I
Not material
/
ESRS 2 – IRO-1 – E4, paragraph 16(a), point (i)
Indicator number 7 Table
#1 of Annex I
Not material
/
ESRS 2 – IRO-1 – E4, paragraph 16(b)
Indicator number 10 Table
#2 of Annex I
Not material
/
459
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS 2 – IRO-1 – E4, paragraph 16(c)
Indicator number 14 Table
#2 of Annex I
Not material
/
ESRS E4-2
Sustainable land/agriculture practices or policies,
paragraph 24(b)
Indicator number 11 Table
#2 of Annex I
Not material
/
ESRS E4-2
Sustainable oceans/seas practices or policies,
paragraph 24(c)
Indicator number 12 Table
#2 of Annex I
Not material
/
ESRS E4-2
Policies to address deforestation, paragraph 24(d)
Indicator number 15 Table
#2 of Annex I
Not material
/
ESRS E5-5
Non-recycled waste, paragraph 37(d)
Indicator number 13 Table
#2 of Annex I
Not material
/
ESRS E5-5
Hazardous waste and radioactive waste, paragraph 39
Indicator number 9 Table
#1 of Annex I
Not material
/
ESRS 2 – SBM-3 – S1
Risk of incidents of forced labour, paragraph 14(f)
Indicator number 13 Table
#3 of Annex I
Not material
/
ESRS 2 – SBM-3 – S1
Risk of incidents of child labour, paragraph 14(g)
Indicator number 12 Table
#3 of Annex I
Not material
/
ESRS S1-1
Human rights policy commitments, paragraph 20
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex I
180
ESRS S1-1
Due diligence policies on issues addressed by the
fundamental International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated Regulation
(EU) 2020/1816,
Annex II
180
ESRS S1-1
Processes and measures for preventing trafficking in
human beings, paragraph 22
Indicator number 11 Table
#3 of Annex I
Not material
/
ESRS S1-1
Workplace accident prevention policy or management
system, paragraph 23
Indicator number 1 Table
#3 of Annex I
178
460
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS S1-3
Grievance/complaints handling mechanisms,
paragraph 32(c)
Indicator number 5 Table
#3 of Annex I
180
ESRS S1-14
Number of fatalities and number and rate of work-
related accidents, paragraph 88(b) and (c)
Indicator number 2 Table
#3 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II
179
ESRS S1-14
Number of days lost to injuries, accidents, fatalities or
illness, paragraph 88(e)
Indicator number 3 Table
#3 of Annex I
179
ESRS S1-16
Unadjusted gender pay gap, paragraph 97(a)
Indicator number 12 Table
#1 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II
183
ESRS S1-16
Excessive CEO pay ratio paragraph 97(b)
Indicator number 8 Table
#3 of Annex I
Not material
/
ESRS S1-17
Incidents of discrimination, paragraph 103(a)
Indicator number 7 Table
#3 of Annex I
180
ESRS S1-17
Non-respect of UNGPs on Business and Human Rights
and OECD, paragraph 104(a)
Indicator number 10 Table
#1 and Indicator n. 14
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II Delegated
Regulation (EU)
2020/1818, Article
12(1)
/
ESRS 2 – SBM-3 – S2
Significant risk of child labour or forced labour in the
value chain, paragraph 11(b)
Indicators number 12 and
13
Table #3 of Annex I
Not material
/
ESRS S2-1
Human rights policy commitments, paragraph 17
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex I
Not material
/
ESRS S2-1
Policies related to value chain workers, paragraph 18
Indicators number 11 and
4 Table #3 of Annex I
Not material
/
461
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS S2-1
Non-respect of UNGPs on Business and Human Rights
principles and OECD guidelines, paragraph 19
Indicator number 10 Table
#1 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II Delegated
Regulation (EU)
2020/1818, Article
12(1)
Not material
/
ESRS S2-1
Due diligence policies on issues addressed by the
fundamental International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation
(EU) 2020/1816,
Annex II
Not material
/
ESRS S2-4
Human rights issues and incidents connected to its
upstream and downstream value chain, paragraph 36
Indicator number 14 Table
#3 of Annex I
Not material
/
ESRS S3-1
Human rights policy commitments, paragraph 16
Indicator number 9 Table
#3 of Annex I and
Indicator number 11 Table
#1 of Annex I
180
ESRS S3-1
Non-respect of UNGPs on Business and Human Rights,
ILO principles or and OECD guidelines, paragraph 17
Indicator number 10 Table
#1 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II Delegated
Regulation (EU)
2020/1818, Article
12(1)
Not material
/
ESRS S3-4
Human rights issues and incidents, paragraph 36
Indicator number 14 Table
#3 of Annex I
Not material
/
ESRS S4-1
Policies related to consumers and end-users, paragraph
16
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex I
184
462
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate Law
reference
Material/
not material
Page
ESRS S4-1
Non-respect of UNGPs on Business and Human Rights
principles and OECD guidelines, paragraph 17
Indicator number 10 Table
#1 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II Delegated
Regulation (EU)
2020/1818, Article
12(1)
/
ESRS S4-4
Human rights issues and incidents, paragraph 35
Indicator number 14 Table
#3 of Annex I
/
ESRS G1-1
United Nations Convention against Corruption,
paragraph 10(b)
Indicator number 15 Table
#3 of Annex I
197
ESRS G1-1
Protection of whistleblowers, paragraph 10(d)
Indicator number 6 Table
#3 of Annex I
198
ESRS G1-4
Fines for violation of anti-corruption and anti-bribery
laws, paragraph 24(a)
Indicator number 17 Table
#3 of Annex I
Delegated Regulation
(EU) 2020/1816,
Annex II
200
ESRS G1-4
Standards of anti-corruption and anti-bribery,
paragraph 24(b)
Indicator number 16 Table
#3 of Annex I
199
463
Appendix 7: GRI, SASB in SDG
Content Index
159
GRI (Global Reporting Initiative) content index
ECONOMIC IMPACTS
GRI standard
Disclosure
Section/page
Requirement(s) omitted
GRI 201: Economic Performance 2016
201-1
Direct economic value generated and
distributed
10.3.3/190
201-2
Financial implications and other risks and
opportunities due to climate change
7.2/71
Reporting on financial implications of
weather and natural disasters
GRI 203: Indirect Economic Impacts 2016
203-1
Extent of development of significant
infrastructure investments and services
supported
10.3.3.1/192
GRI 417: Marketing and Labelling 2016
417-1
Requirements for product and service
information and labelling
10.3.2.1/184
417-2
Total number of incidents of non-
compliance with regulations and/or
voluntary codes concerning product and
service information and labelling
10.3.2.1/185
417-3
Total number of incidents of non-
compliance with regulations and/or
voluntary codes concerning marketing
communications, including advertising,
promotion, and sponsorships
10.3.2.1/185
GRI 418: Customer Privacy 2016
418-1
Substantiated complaints concerning
breaches of customer privacy and losses
of customer data
10.3.2.3/189
GRI G4: Financial Services Sector Disclosures
G4-FS7
Monetary value of products and services
designed to deliver a specific social
benefit
10.2.1.3/154–155
G4-FS8
Monetary value of products and services
designed to deliver a specific
environmental benefit
10.2.1.3/154–155
G4-FS14
Initiatives to improve access to financial
services for disadvantaged people
10.3.2.2/188
159
BP-2_16.
464
SASB (Sustainability Accounting Standards Board) content index
Insurance
Topic
Metric
Code
Section/page
Transparent Information &
Fair Advice for Customers
Total amount of monetary losses as a result of legal
proceedings associated with marketing and communication
of financial product-related information to new and
returning customers
FN-IN-270a.1
10.3.2.1/185
Complaints-to-claims ratio
FN-IN-270a.2
10.3.2.1/186
Customer retention rate
FN-IN-270a.3
10.3.2.1/186
Description of approach to informing customers about
products
FN-IN-270a.4
10.3.2.1/184
Incorporation of
Environmental, Social and
Governance Factors in
Investment Management
Description of approach to incorporation of environmental,
social and governance (ESG) factors in investment
management processes and strategies
FN-IN-410a.2
10.1.2.1/128
Policies Designed to
Incentivise Responsible
Behaviour
Net premiums written related to energy efficiency and low
carbon technology
FN-IN-410b.1
10.2.1.3/154
Discussion of products or product features that incentivise
health, safety or environmentally responsible actions or
behaviours
FN-IN-410b.2
10.2.1.3/154
Physical Risk Exposure
Probable Maximum Loss (PML) of insured products from
weather-related natural catastrophes
FN-IN-450a.1
2.8.2.1
Accounting
report /290
Total amount of monetary losses attributable to insurance
pay-outs from (1) modelled natural catastrophes and (2)
non-modelled natural catastrophes, by type of event and
geographical segment (net and gross of reinsurance)
FN-IN-450a.2
7.2/71
Systemic Risk Management
Exposure to derivative instruments by category
FN-IN-550a.1
2.8.2.1
Accounting
report/286
Total fair value of securities lending collateral assets
FN-IN-550a.2
2.5.10
Accounting
report /274
Description of approach to managing capital- and liquidity-
related risks associated with systemic non-insurance
activities
FN-IN-550a.3
9.2.1/111
Asset management
Topic
Metric
Code
Section/page
Transparent Information &
Fair Advice for Customers
Number and percentage of licensed employees and
identified decision-makers with a record of investment-
related investigations, consumer-initiated complaints,
private civil litigations, or other regulatory proceedings
FN-AC-270a.1
10.4.1/199
Total amount of monetary losses as a result of legal
proceedings associated with marketing and communication
of financial product-related information to new and
returning customers
FN-AC-270a.2
10.3.2.1/185
Description of approach to informing customers about
products and services
FN-AC-270a.3
10.3.2.1/185
Employee Diversity &
Inclusion
Percentage of gender and diversity group representation for
(1) executive management, (2) non-executive management,
(3) professionals, and (4) all other employees
FN-AC-330a.1
10.1.2/123,
10.3.1.4/181
465
Incorporation of
Environmental, Social, and
Governance Factors in
Investment Management &
Advisory
Amount of assets under management, by asset class, that
employ (1) integration of environmental, social, and
governance (ESG) issues, (2) sustainability themed investing
and (3) screening
FN-AC-410a.1
10.2.1.3/156
Description of approach to incorporation of environmental,
social and governance (ESG) factors in investment or wealth
management processes and strategies
FN-AC-410a.2
10.1.2.1/128
Description of proxy voting and investee engagement
policies and procedures
FN-AC-410a.3
8.4/103
Business Ethics
Total amount of monetary losses as a result of legal
proceedings associated with fraud, insider trading, antitrust,
anticompetitive behaviour, market manipulation,
malpractice, or other related financial industry laws or
regulations
FN-AC-510a.1
10.4.1/198
Description of whistleblower policies and procedures
FN-AC-510a.2
10.4.1/198
UN SDGs (United Nations Sustainable Development Goals) content index)
Goal
Goal description
Section/page
2
By 2030 double the agricultural productivity and the incomes of small-scale food
producers, particularly women, indigenous peoples, family farmers, pastoralists and
fishers, including through secure and equal access to land, other productive resources and
inputs, knowledge, financial services, markets and opportunities for value addition and
non-farm employment
10.2.1.3/154
3
By 2020 halve the number of global deaths and injuries from road traffic accidents
10.3.3/189
5
Achieve gender equality and empower all women and girls
10.3.1.4/181
7
Ensure access to affordable, reliable, sustainable and modern energy
10.2.1.3/154
8
Promote development-oriented policies that support productive activities, decent job
creation, entrepreneurship, creativity and innovation, and encourage the formalization and
growth of micro-, small- and medium-sized enterprises, including through access to
financial services
10.3.2.2/187
Protect labour rights and promote safe and secure working environments for all workers,
including migrant workers, in particular women migrants, and those in precarious
employment
10.3.1.3/178
9
Increase the access of small-scale industrial and other enterprises, in particular in
developing countries, to financial services, including affordable credit, and their integration
into value chains and markets
10.2.1.3/154
11
Make cities inclusive, safe, resilient and sustainable
10.3.2.2/187
13
Strengthen resilience and adaptive capacity to climate-related hazards and natural
disasters in all countries
10.2.1.3/154
Improve education, awareness-raising and human and institutional capacity on climate
change mitigation, adaptation, impact reduction and early warning
10.2.1.3/154
15
By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in
order to enhance their capacity to provide benefits that are essential for sustainable
development
10.3.3.1/192
16
Substantially reduce corruption and bribery in all their forms
10.4.1/199