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insurers
With IFC on board,
Slovenia’s Triglav ready to step
up expansion in SEE
by Georgi Georgiev
What market conditions did Triglav
Group face in 2011 in the countries
part of its footprint in Southeast Europe?
Similarly to most other business entities, in
its operations in SEE in 2011 Triglav Group
was faced with the overwhelming eff ects
from the European debt crisis. Market confi -
dence stagnated, debates persisted over developments
in the banking sector, corporate
fi nancing conditions and the labour market
situation got tougher and on top of that the
crisis in Slovenia’s construction industry deteriorated
further. Pressure on GDP in the
region mounted, which was also refl ected
in lower purchasing power and muted consumption.
What were some of the key market
trends that shaped the group’s business
performance last year and how
did they diff er from market to market?
In SEE, unemployment rates remain high,
household income is low and purchasing
power is on the decrease. It is obvious that
household, corporate and general government
debt should go down and that the
34
Matjaz Rakovec,
President of the managing
board of Zavarovalnica
Triglav
The net profi t of Triglav Group,
active on seven markets across
Southeast Europe as well as in
the Czech Republic, rose 78%
to 47.5 million euro in 2011. Return
on equity at both Triglav
Group and its parent company,
Zavarovalnica Triglav,
improved dramatically, moving
closer to 12% − the target
value for 2015. The combined
ratio in 2011 was 90.1% at the
group level. Last year saw the
beginning of talks on the entry
of a strategic partner, the
International Finance Corporation,
into the Triglav Group
through the company Triglav
INT, a process that was formally
fi nalised this year.
strong market players are seeking to increase
their footprint.
The slight decline in Triglav’s gross
written premiums at group level
continued in 2011 and you have forecast
it will extend into 2012 as well.
When do you anticipate a turnaround
and what factors could help
you achieve it?
Macroeconomic trends and further development
of the fi nancial and economic crisis will
play an important role. With its new 2011-2015
Business Strategy, Triglav Group has under-