Non-life insurance

In total, Triglav Group insurance companies charged EUR 735.8 million of unconsolidated insurance and co-insurance premium from non-life insurance contracts, which is a 2% nominal decrease on the same period the year before. This drop was expected due to the following key reasons:

  • Sustained price competition among insurers in the motor vehicle insurance market continued alongside lowering prices of insurance products and premium reductions for large policyholders won through public tenders (stricter tender requirements, competition, participation of insurance brokers and agencies in setting tender requirements and their commissions).
  • In mid-2010 the range of motor vehicle insurance was thoroughly changed, due to the increasingly pronounced economic crisis and consequently changed behaviour of policyholders. The financial effects of the change were felt in the first half of 2011. They primarily consisted of lowering prices and the balancing of two major types of car insurance, i.e. motor liability and comprehensive car insurance (see also Sections Development activities/Non-life insurance and Impact of the environment on the performance of the Triglav Group).
  • Efforts continued in order to mitigate the poor technical results recorded in insurance of interests in property as well as in agricultural insurance. The resulting changes caused a decrease in insurance premium and simultaneously consolidated the basis for improving insurance technical results. It should be noted that 2011 saw a significant change in key client management. The reduced number of entry points and higher level of professional services (sales and after-sales) were the main reasons for establishing a centralised organisational unit for key clients. This unit was founded in early 2011.

The largest (36.8%) share in the portfolio of total premium was charged on motor vehicle insurance. The Group collected EUR 144.1 million in comprehensive car insurance premium, which was 2% less than the year before. The premium decreased in several members of the Group, while growth was recorded by Triglav Osiguranje, Banja Luka (32% increase), Triglav Osiguranje, Belgrade (25% increase) and Triglav Pojišt'ovna (12% increase). In motor liability insurance, the members of the Triglav Group in 2011 posted EUR 205.1 million of written premium: a 9% decline compared to the previous year. Among the Group members, written premium only grew in Triglav Osiguranje, Belgrade (by 10%) and Triglav Osiguranje, Banja Luka (by 5%). The reasons for the lower volume of motor vehicle insurance were stated in the introduction to this section. The new motor vehicle insurance range consists mainly of the renewal of motor vehicle insurance packages, lowering the prices of certain packages and the introduction of additional discounts, targeted at certain client segments, particularly safe drivers, long-term clients and families. In 2011, families were offered an extra 15% discount on motor vehicle insurance for an additional car in the family.

A high 10% growth in written premium was recorded in health insurance, mostly on account of the results of Triglav Zdravstvena zavarovalnica, which in June widened its range by one product. After this addition the range included:

  • supplementary voluntary health insurance (ZZ11);
  • insurance for health resort treatment of injuries (ZZ69);
  • additional accident insurance (NZ11);
  • insurance for health-resort treatment of traffic injuries (ZZ79); and
  • allowance insurance (ZZ75).

Once again, Triglav Zdravstvena zavarovalnica increased its market share in Slovenia to 18.7% (at the end of 2010 it was 17.7%). It booked a total of EUR 80.2 million in gross written premium, i.e. EUR 7.5 million more than in 2010. The growth of written premium stems from the successful marketing of supplementary health insurance products and a consequent increase in the portfolio of Triglav Zdravstvena zavarovalnica. In 2011, it included a total of 23,327 supplementary health insurance policies and 4,000 other policies. Among other insurers in the Triglav Group offering health insurance, growth was recorded in Triglav Osiguranje, Banja Luka (index 113), whilst other insurance companies collected less premium than the year before (Triglav Osiguranje, Sarajevo, Triglav Osiguranje, Zagreb and Lovćen Osiguranje). The share of these insurance companies in total health insurance premium accounted for a little more than 1%.

In 2011, in the property insurance class (fire and natural forces insurance and other damage to property insurance), 166.6 EUR million in premium was recorded, representing a 2% nominal growth. A slightly higher growth of 3% was recorded in other property insurance. The premium from fire and natural forces insurance remained at the same level as in 2010. Zavarovalnica Triglav's share in total premium from proper non-life insurance represents more than 82% (growth index 102). This good result reflects the work of the new key client organisational unit, which acquired several large clients in the first year of its operation. Some newly concluded insurance policies are "one-off", which does not, however, diminish the good sales results. The positive results in property insurance could have been even better, if the terms and conditions for agricultural insurance had not been made more stringent. Deductibles without surrender options, stricter terms of risk underwriting and a cap on the sum insured for crops with government co-financing of insurance premiums were introduced in order to improve insurance technical results. These measures lowered the realisation by approximately EUR 2.6 million. In addition to Zavarovalnica Triglav, premium increases were also recorded in Triglav Pojišt'ovna (100% growth), Triglav Osiguranje, Belgrade (8% growth) and Triglav Osiguranje, Banja Luka (6% growth). Other members of the Group earned less premium compared to 2010.

Accident insurance represented 5.5% of total written premium, or EUR 51.9 million, nominally. This 7% reduction is primarily the result of the changes in motor vehicle insurance described above. More than a half of the premium in this insurance group arises from two insurance sub-classes taken out simultaneously with car insurance. Premium for AO-plus insurance and driver and passenger accident insurance decreased by more than 10% in nominal terms. The second largest insurance class, collective accident insurance (accounting for more than one third of total accident insurance) also experienced a nominal drop in growth. This decrease in written premium was a result of increasing unemployment and the poor state of the Slovene economy. Trends in the largest insurance sub-classes show that the situation cannot be significantly improved by good sales results in certain smaller accident insurance sub-classes. Good results were achieved with individual accident insurance products and accident insurance of subscribers and consumers, which primarily means the insurance of card owners, bank accounts, etc.

General liability insurance reached 3.7% of the total. In 2011, EUR 35.1 million in premium was recorded, i.e. 2% more than in 2010. This is considered to be a success, as the majority of this insurance class consists of general liability insurance, which recorded a drop in premium due to the poor state of the economy and growing unemployment. Very solid sales results were achieved in product liability insurance, guarantee insurance and most professional liability insurance products (covering the liability of medical doctors, attorneys-at-law or management and supervisory board members) as well as other classes of liability insurance. Most insurance companies within the Triglav Group posted a growth in premium; Zavarovalnica Triglav (its share is almost 84% of total premium) remained at approximately the same level as the 2010 year end, while Triglav Osiguranje, Belgrade and Triglav Osiguruvanje, Skopje collected less premium.

Credit insurance accounted for 2.2% of the total premium and accounted for an 8% less premium than the year before. This result is primarily caused by trends in consumer loan insurance, where the premium markedly decreased due to the drop in volume of bank loans. The letter represented the bulk of the premium from credit insurance and therefore, the drop was expected. The performance of other credit insurance sub-classes was solid, especially export credit insurance, domestic trade insurance and overdraft insurance.

Other classes of non-life insurance (which accounted for 3.3% of total premium) grew by 11%. These results are mostly due to excellent sales of roadside assistance, which remained the best assistance insurance in the Slovene market, and an increase in the railway insurance premium. Nominal growth was also seen in suretyship insurance, travel insurance, marine insurance, goods in transit insurance and miscellaneous financial loss insurance.


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