8.1 Related party transactions
Related party transactions are disclosed separately for transactions with:
- government related entities, and
- other related entities.
Associates are those entities in which the Group has a significant influence. These companies are presented in detail in Section 6.4 Investments in associates.
Government related companies are all the companies in which the Republic of Slovenia has a significant influence. The Republic of Slovenia has a significant influence in Zavarovalnica Triglav through the two major shareholders (the Institute of Pension and Disability Insurance of Slovenia (Zavod za pokojninsko in invalidsko zavarovanje Slovenije - ZPIZ) and the Slovene Restitution Fund (Slovenska odškodninska družba - SOD), which hold 34.37% and 28.07% of share capital respectively).
Other related entities are those which are related to Zavarovalnica Triglav through the management, i.e. members of the management and supervisory boards.
In addition to capital links, business cooperation with associates mostly refers to financial services (deposits and certificates of deposits) and insurance operations (reinsurance and co-insurance, insurance acquisition, development and launch of new products, handling of claims). Only a minor part of cooperation refers to operating leases and other service activities.
Business cooperation with government related companies refers to financial services and insurance business. Zavarovalnica Triglav made no direct transactions with the Republic of Slovenia, except for the purchase of
Government bonds and treasury bills; with other governmet related companies, however, Zavarovalnica Triglav concluded and carried out financial and insurance business under the same conditions as apply to other non-related companies.
The services exchanged between Group companies are rendered at prices that are applied to other companies outside the Group.
Outstanding balances referring to the above-mentioned related parties as at the reporting date and income and expenses during the period are shown below.