Zavarovalnica Triglav 2017: Strong GWP growth continues, but bottom line lighter due to CAT claims. Still a high dividend performer.
GWP grew 6.8% YoY with growth broad based from segment and country perspective. Non-life up 7%, Health insurance premiums up 13% and life up 3% YoY in 2017. However claims are also higher especially related to CAT events which amounted to EUR 33.5m and are 22% above 10 year average. Consequently EBT stood at EUR 84.4m while profit at EUR 69.7m, both down 11.3% and 15.3% respectively. While this is slightly below our expectations its entirely due to CAT events while results are also in-line with Triglav 2017 guidance. Note 2018 guidance is EBT at EUR 80-90m with continued growth of GWP. Share price has caught up our past target price and valuation, as Triglav now trades around its book value. Nevertheless our excess return valuation lifted overall target price to EUR 36 per share, as cost of equity dipped. Also it’s hard to ignore that past and this years dividend of EUR 2.5 per share yield 7.5% and is providing a hefty annual return. We consequently stick with a buy recommendation.
Zavarovalnica Triglav DD. Zavarovalnica Triglav dd is Slovenian-based company principally engaged in the insurance and financial services. Zavarovalnica Triglav dd is the controlling company of the Triglav Group which offers insurance, asset management and banking services. Zavarovalnica Triglav dd, Zdrastvena zavarovalnica dd and Pozavarovalnica Triglav Re dd provide wealth, life, voluntary additional pension and health insurances. The insurance sector of the Company also operates in the Czech Republic, Croatia, Bosnia and Hercegovina, Montenegro, Serbia and Macedonia. Through Triglav DZU ddo, Triglav Nalozbe financna druzba dd and Triglav nepremicnine dd the Company provides investment fund management, real estate and banking services. As of June 22, 2012, the Company acquired a 100% stake in Investicijsko podjetje, Trgovanje z lastnimi nepremicninami doo from Sava dd.
ALTA Invest, investicijske storitve, d.d., (ALTA Invest, investment services, Inc.) is a part of ALTA Group, the biggest financial non-banking group in Slovenia. ALTA Invest has around 28% market share on the domestic Ljubljana Stock Exchange and has more than EUR 95m of assets under management.
Our trading advantage is our execution of large trading blocks with low impact on the market. We offer trading on several platforms on numerous markets, with a wide variety of financial instruments. Our advantage is also a research department, which is both sell side and buy side and has the far most extensive and regular coverage of domestic companies. We cover 9 companies on Ljubljana Stock Exchange, which is around 90% of Mcap on LJSE – and here we are practically the only local broker providing this kind of extensive and regular coverage for Slovenian companies.
A part of ALTA Group are ALTA Skladi, a mutual fund asset management company with roughly EUR 260m of asset under management. ALTA Group is also extensively involved in corporate finance projects and raised considerable assets (fixed income and equity) in the last two years for several companies.
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