As at the last day of 2011, the Triglav Group allocated EUR 2,234.1 million to gross insurance technical reserves, which are the basis for balanced operations and ensure the long-term safety of our insured parties. Compared to 2010, the total amount of gross provisions decreased by 2%, with provisions for non-life insurance decreasing by 2% and provisions for life insurance by 1%.

Provisions by type as at 31 December 2011, compared to the same day of 2010:

• Gross provisions for unearned premiums decreased by 2% and reached EUR 291.7 million. Unearned premium from non-life insurance amounted to EUR 291.3 million (index 98), while unearned premium from life insurance totalled EUR 0.4 million, which was 17% more than one year earlier;
• Gross provisions for outstanding claims decreased by 1% and amounted to EUR 705.5 million. The decrease is the result of the reduction in claims due to implementing measures in risk underwriting and portfolio selection and a lower number of mass natural disaster claims. Claims provisions from non-life insurance totalled EUR 684.8 million (index 99) and those from life insurance EUR 20.6 million (index 96).
• Mathematical provisions stood at EUR 1,210.0 million, representing a 1% decrease over last year. Of the total amount of mathematical provisions, EUR 685.2 million originated from the long-term business fund backing life insurance, EUR 158.1 million from the long-term business fund backing SVPI, EUR 2.2 million from the long term business fund backing SVPI, i.e. annuities, and EUR 364.5 million from the long-term business fund backing unit-linked life insurance. The main reasons for lower provisions are the increase in number of surrendered supplementary voluntary pension insurance due to the completion of a 10-year saving period and a reduction in provisions for unit-linked life insurance, which is the result of a general decrease in value of investments linked to the insurance assets.
• Provisions for bonuses and rebates decreased by 7% to EUR 16.6 million;
• Other insurance technical provisions totalled EUR 10.4 million or 46% less than in 2010, primarily due to the decrease in provisions for unexpired risk, the value of which is based on insurance technical results by individual insurance class. The improvement in these results caused a decrease in provisions.

Gross insurance technical provisions as at 31 December 2011