Zavarovalnica Triglav 9M17: Strong GWP growth continues, claims increased while profit stagnated YoY.
Strong GWP growth continued in 3Q17 and consequently 9M17 with strength present across the board. Namely GWP increased in all countries, from Slovenia (+7%), Serbia (+29%) and Croatia (+11%) to BiH (+6%), Montenegro (+3%) and Macedonia (+1%), and in all segments, by 8% YoY in non-life, by 3% YoY in life and by 14% YoY in health. However gross claims also increased by 5% YoY and CAT losses are up by EUR 6m vs entire 2016 to EUR 25m. This turned positive expense ratio dynamic into slightly weaker combined ratio (by 0.3 p.p. to 95.3%). Nevertheless profit of EUR 52.3m was recorded, which is likely in line with plan and expectations. Reported ROE now stands at 9.6% with book value per share of EUR 32.31. Our estimates remain unchanged as well as our target price and 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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