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Slovenian Weekly Report 11.9.2017-15.9.2017

Some excerpts from Triglav:

• Performance in the 2Q17 was in line with plans. Claims higher, but in line with long term targets. Combined ratios on most foreign markets are elevated, however, trends are positive. Non-life were positively affected by number of policies and price increases which also contributed to growth in other segments.
• Investment income increased due to impairments last year, however, trends are negative due to lover reinvestment rates. This is likely to continue.
• Market shares on some markets suboptimal, hence, potential takeovers are not excluded. Thorough digital platform Triglav could enter markets outside the region.
• During the year Triglav is using the effective tax rate from the previous end of the year, that is why tax in the first half was lower YoY. Since there are numerous events which affect the tax rate, Triglav is guiding profit before tax.
• Portfolio in formed based on strategic asset allocation and take into account matching assets with liabilities, hence there is low level of tactical allocation.

Sava Re:

• Slovenian non-life contributed the highest share of profit in 1H17 due to lower YoY net claims.
• Investment income affected by subordinate liabilities buyback which resulted in higher interest expenses in the amount of EUR 0.5m. Investment portfolio was lower than at the end of 2016, which is a result of subordinated debt buyback and dividend payments. In the structure, the main change was lower exposure to government since Sava Re decided to sell long dated sovereign bonds and move into money market funds.
• Some claims are expected due to hurricane damage, mainly related to shipping companies which were affected in the Caribbean area. First estimates are in the amount of EUR 2m.