The amount of, and primarily the fluctuations in, the available capital of the insurance companies of the Triglav Group depend on several factors, such as the structure and nature of services, the volume of premiums, assets and liabilities, market interest rates and other capital market parameters. Every Triglav Group member continually monitors its capital adequacy and keeps a certain amount of available capital above the capital requirement for maintaining core business and covering potential losses. Available capital surplus offers high protection against loss arising from unexpected adverse events. In addition to current capital adequacy levels, the Triglav Group also monitors the maintenance of planned capital adequacy levels and capital adequacy as such. In doing so, it monitors the effects of the environment on capital adequacy and provides for optimal capital allocations of the Group and group members.
The main objective is to maintain a suitable capital level in the Group and in all its members. Furthermore, we also take into account the Group members' overall solvency needs by regularly monitoring the coverage ratios of insurance liabilities with respective assets.
► In Zavarovalnica Triglav, the minimum required capital to available capital ratio in non-life insurance as at 31 December 2011 was 189% (vs. 178% as at 31 December 2010), while in life insurance the respective ratio was 161% (vs. 166% as at 31 December 2010). Throughout 2011, as in 2010, Zavarovalnica Triglav maintained the required capital adequacy.
Minimum required capital to available capital ratio