EUROPE’S BIGGEST COMPANIES

TOP 100
insurers
bility. Our market share in Slovenia increased
by 0.3 percentage points to 36.1% last year.
How did Triglav Group perform in
the rest of Southeast Europe (SEE) in
2014?
The Triglav Group, the leading insurance/financial
group in the Adria region, performed well
on the SEE markets part of its footprint. The
Group consolidated its position as the market
leader on the insurance markets of Slovenia,
Montenegro and Macedonia, as well as sticking
to the set strategic guidelines in Serbia, Croatia
and Bosnia and Herzegovina. The market share
in Montenegro was 38.2%. In Macedonia,
where the Group provides only non-life insurance,
its market share in that segment rose by
0.3 percentage points to 17% in 2014. With a
3.8% market share as at the 2014 year-end the
Triglav Group posted the biggest improvement
in its market position in the Serbian market,
i.e. by 0.8 percentage points. The Group held a
3.7% market share in Croatia, while in the insurance
market of Bosnia and Herzegovina as a
whole its share was 7.6%.
The insurance markets in the Balkan countries,
from Croatia to Macedonia, have potential
for growth. Despite challenging economic
conditions, most of these markets have experienced
growth. Our markets outside Slovenia
have different characteristics and require
a modified development approach. With
this in mind, we are boosting Triglav INT as a
holding company, the direct owner of all our
subsidiaries outside Slovenia and a corporate
governance vehicle. In line with its strategy
until 2017, the Triglav Group will continue to
consolidate its position in the region through
clearly focused activities and develop into
the insurance hub of the SEE region.
What key trends are emerging on
the SEE insurance market? How are
they going to affect your business
over the medium term?
The increased level of competition is the
main trend in the insurance markets of the
six countries currently covered by the Group.
This trend is most visible in the Croatian market
as a result of liberalisation of the motor
vehicle liability insurance market.
Each of the insurance markets in SEE covered
by the Group is also affected by the economic
36.1%
Triglav’s market share
in Slovenia in 2014
conditions and the market development level
in any of these countries, as the situation in the
region is not uniform. In 2014, the SEE countries
posted modest economic growth, with
the exception of Croatia, where the recession
continued, and Serbia, where it started. Insurance
premium per capita as an indicator of
insurance market development also shows significant
differences. In 2013, it ranged from 960
euro in Slovenia to 280 euro in Croatia, while
in other countries of the former Yugoslavia it
was between 50 and 120 euro. As already mentioned,
we believe that the region has potential
for growth in the coming years.
The Triglav Group takes into consideration
the above-stated facts in its operations in individual
markets. As a result of the economic
crisis and aggressive competition, the Triglav
Group is responding to changed consumer
behaviour by taking several measures such
as adopting new sales approaches, launching
new products, special offers, intensive sales
activities in both the internal and the external
sales network, amendments and adjustments
of the insurance terms and conditions
as well as selective risk underwriting.
What insurance product categories
paced growth on the wider SEE market
in 2014? Where do you see untapped
growth potential over the near term?
Stagnant conditions
on insurance market
intensify competition
In most SEE markets, the Triglav Group
recorded growth in several motor vehicle
insurance classes, mainly in motor vehicle
liability insurance. Some increases were
also recorded in premiums from other
and real property insurance, especially by
attracting new clients. In addition to the
Slovenian market, health insurance products
grew in Montenegro and Serbia. High
health insurance growth was achieved by
the Sarajevo subsidiary, primarily as a result
of good sales via agencies and banking
sales channels.
Each of the six countries in the Adria region
where the Triglav Group operates has some
specific features, which the individual insurance
subsidiaries of the Triglav Group take
into account to define their strategic guidelines
and business plans.
In the long run, in Slovenia there is growth
potential for health and pension insurance
and in other SEE markets two segments
will potentially grow. The first segment is
non-life insurance (other classes excluding
motor vehicle insurance) and various life insurance
classes. Life insurance, which in the
markets of the Triglav Group is less present
than non-life insurance, currently represents
a minor share in the Group's total gross written
premium, i.e. approximately 22% at the
2014 year-end. The second segment is health
insurance, where long-term growth is expected.
When do you expect a consolidation
drive in the SEE insurance sector
could gather significant momentum?
We believe that in some markets the insurance
sector will have to be consolidated
because the present structure is too fragmented.
Unfortunately, it is impossible to
estimate when this will happen. The insurance
markets in this region, from Croatia
to Macedonia, have potential for growth. In
line with its strategic guideline, the Triglav
Group will continue to consolidate its position
in the region and to develop as the SEE
insurance hub. That will be achieved through
organic growth, strategic partnerships and
potential takeovers, the latter depending
on any right opportunity that may arise and
which we continue to look for.
37