Triglav Grupa's H1 2013 net profit at EUR 45.6 million

The net profit of the Triglav Group in the first half of 2013 was at EUR 45.6 million, up 10 percent from the same period in the previous year. The parent company Zavarovalnica Triglav d.d. generated a net profit of EUR 37.5 million during the first half of this year, 50 percent more than in the same period last year, the Triglav Group said in a release on Friday (23 August 2013).

These figures are taken from the Unaudited Interim Report of the Triglav Group and Zavarovalnica Triglav for the period January 1st - June 30th, which has been approved at a session of the company's Supervisory Board.

The Triglav Group recorded gross written insurance and co-insurance premium of EUR 496.4 million over the first six months of 2013, down 5 percent from the last year. The parent company contributed EUR 343.8 million to the total gross written premium, which is a decrease of 8 percent in nominal terms against the same period last year. The decline in written premium was a result of difficult market conditions, economic crisis and a strategic focus on profitability, the release reads.

Through the intensive management of the property insurance portfolio, the Triglav Group achieved a favourable combined ratio (a measure of profitability in core insurance business) of 90.8 percent, while the parent company achieved a ratio of 84.9 percent.

Through improved cost efficiency, the Triglav Group recorded a 2 percent reduction in gross operating costs, which totalled EUR 142.9 million.

Through last year’s extensive impairments of financial assets as the result of unfavourable movements on the capital markets, developments in the banking sector and the resulting drop in the value of certain investments, the Triglav Group successfully adjusted the value of its portfolio, which had a favourable impact on results generated in the first half of 2013.

The interim results of Zavarovalnica Triglav and the Triglav Group for the six month period ended 30 June 2013 will be published on 23 August 2013.

The Supervisory Board appointed Barbara Nose an external member to the Audit Committee, who is not a member of the Supervisory Board.

The Supervisory Board was briefed on the internal audit report of Zavarovalnica Triglav’s Internal Audit Department for the period January to June 2013. In addition, it took note of the report on procedures carried out based on the recall of Matjaz Rakovec from his position as President of the Management Board, and on the report on the Group’s readiness for the implementation of the Solvency II Directive. Furthermore, the Supervisory Board adopted Amendments to the Rules of Procedure of the Supervisory Board of Zavarovalnica Triglav d.d.

The Supervisory Board took note of Zavarovalnica Triglav d.d. 's intention to participate in the process of selling off Croatia Osiguranje d.d. and expressed its support.