Insurance market and market position of the Group members in 2011

According to the most recent official data published by Swiss RE (January 2012),Europestill holds the first place in the international insurance business. In 2010Europeunderwrote 37% of the total premium, which is 2% less than in 2009. North and South America accounted for a 33% andAsiafor a 27% share. Africa andOceaniajointly represented just above 3% of the international insurance premium.

The Slovene insurance market is one of the smallest markets both globally and on the European scale. In 2010 it accounted for 0.06% of the global insurance market (in 2009 its share was 0.07%), ranking it 50th in the world. Although the Slovene market is 108 times smaller than the British market, which is the biggest European insurance market, it is nonetheless well developed. In terms of absolute size, the Slovene insurance market is larger than the markets of Slovakia, Malta, Cyprus, Croatia, Bulgaria and some other European insurance markets. 

Relative indicators show a more appropriate comparison of the insurance market development. On an international scale, Slovenia is ranked 29th in premium per capita (premiums as a percentage of GDP), which is one place lower than in 2010, and 25th in insurance penetration (the same as in 2009).

Premium per capita and market penetration in Slovenia and certain other European countries in 2010

 

Premium per capita

Insurance penetration

 

(in USD)

World scale

(as a % of GDP)

World scale

Slovenia

1,353

29

5.9%

25

Austria

2,648

21

5.9%

26

Croatia

379

46

2.8%

51

CzechRepublic

777

34

4.2%

38

United Kingdom

4,298

8

11.9%

4

Switzerland

6,724

1

10.0%

10

Greece

542

37

2.0%

59

Serbia

100

66

1.8%

64

EU - geographic area

1,839

 -

7.4%

 -

EU - 27

2,716

 -

8.4%

 -

Source: Sigma, Swiss Re (No. 2, 2011)

 
 
 

There were 16 insurance companies and 3 foreign branch offices active in the Slovene insurance market in 2011. Together they recorded a gross written premium amounting to EUR 2.1 billion, which was slightly less than in 2010 (index of 99.9). Traditional insurance companies (18) booked a total of EUR 2.1 billion in premium, of which 70% stemmed from non-life insurance and the remainder from life insurance. In October Modra zavarovalnica was included the traditional insurance companies, It was founded in the process of division by exclusion from Kapitalska družba (at the time of foundation it took over the management of Closed Mutual Pension Fund for Civil Servants, Capital Mutual Pension Fund, First Pension Fund of the Republic of Slovenia and Guarantee Fund of the First Pension Fund). Non-life insurance premium increased by 1.1%, while life insurance premium decreased (index of 97.4). The data do not include insurance business in Slovenia written directly by insurance companies from other EU member states (FOS). This share is growing, but the Company still considers it to be negligible. Zavarovalnica Triglav directly operates in all 27 EU member states.

The market is characterised by a high degree of concentration. In 2011, the four largest insurers controlled over 70.5% of the traditional market (vs. 70.8% in 2010). By holding 33.3% of the market, Zavarovalnica Triglav remained the market leader (excluding Modra zavarovalnica the market share of Zavarovalnica Triglav was 35.7%). The second largest market share was held by Zavarovalnica Adriatic Slovenica, a company 2.6 times smaller. At the year end, Zavarovalnica Triglav and Triglav Zdravstvena zavarovalnica had a combined market share of 37.1%, which was 0.8 percentage points less than in 2010 (excluding Modra zavarovalnica their combined market share was 39.8%). Predominantly foreign-owned insurance companies (Generali, Merkur, Grawe, Arag, Ergo, Victoria Volksbanken, Wiener Stadtische) continued to increase their market shares. In 2011, they recorded a total of EUR 202.3 million in premium and had a combined market share of 9.7% (vs. 9.3% in 2010).

The Company held 31.6% of the life insurance market and 34.0% of the non-life insurance market. After excluding Modra zdravstvena zavarovalnica, according to the data up to October of 2011, at the end of the reporting year the market shares of Zavarovalnica Triglav in life insurance and non-life insurance sectors were 40.6% and 34.0% respectively. Since the Slovene insurance market is one of the more developed markets with a relatively high market concentration, the competition is directed at the existing clients. Maintaining the leading position and increasing comparative advantages are therefore both demanding and stimulating for development.

The 2011 market share of Zavarovalnica Triglav and other traditional insurance companies based in Slovenia

Source: Slovenian Insurance Association

 
 
 
 
 
 
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