TRIGLAV GROUP
Presentation for investors
Triglav Group, Presentation for investors CONTENT
1. Introduction of Triglav Group
2. Triglav Group markets
3. Triglav Group strategy
4. Financial highlights of Triglav Group
Triglav Group, Presentation for investors CONTENT
• Introduction of Triglav Group
• Triglav Group markets
• Triglav Group strategy
• Financial highlights of Triglav Group
Triglav Group, Presentation for investors INTRODUCTION OF TRIGLAV GROUP
Triglav Group is an international insurance and financial group, active on eight European markets.
The Group’s business is based on three pillars: insurance investment fund and asset management Banking
Rating agency Standard & Poor’s assigned Triglav Group rating “A” with stable midterm outlook Triglav Insurance Company’s stocks were listed on Ljubljana Stock Exchange
Triglav Group, Presentation for investors INTRODUCTION OF TRIGLAV GROUP
Insurance is our core business, including non life, life, supplementary voluntary pension and health insurance.
The insurance part of the Group also encompasses: Zavarovalnica Triglav, Triglav Zdravstvena zavarovalnica and Pozavarovalnica Triglav Re in Slovenia Insurance undertakings in Czech Republic, Croatia, Bosnia and Herzegovina, Montenegro, Serbia and the Former Yugoslav Republic of Macedonia Branch office in Bratislava, Slovakia .
Investment fund and asset management is provided by Triglav DZU and Triglav Naložbe finančna družba. Their business involves investments in securities, real property loans and other instruments.
Banking is a strategically important business of the Triglav Group. On one hand, it complements its offerings and, on the other, it enables the development of bancassurance products and services similar to those already well developed around the world. Zavarovalnica Triglav is a shareholder in Abanka Vipa, one of the largest Slovene banks.
Triglav Group, Presentation for investors INTRODUCTION OF TRIGLAV GROUP
Key objectives of Triglav Group
To retain the leading position as insurance – financial group in Slovenia
To retain the leading position in the insurance markets of Slovenia and in the region of Western Balkan and to remain among the first three insurance groups in the region of South east Europe
To assure sustainable growth of profit from the core businesses
To maintain the capital level that will by 2011 enable us to retain a rating from one of the established rating agencies that would not be lover then the best rating of equal sized insurance companies in the region of South east Europe
To implement complete risk management system and to be compliant with coming Solvency II requirements.
Triglav Group, Presentation for investors INTRODUCTION OF TRIGLAV GROUP
Members of the Triglav Group whose core business is identical to or supports the core businesses of the Group
Insurance Investment fund and Banking Other asset management
Slovenia Zavarovalnica Triglav, d.d. Triglav DZU, d.o.o. Abanka, d.d. TRI PRO, d.o.o. Triglav Re, d.d. Triglav Naložbe, d.d. Skupna pokojninska družba, d.d. Triglav, Zdravstvena zavarovalnica, d.d. AS Triglav, d.o.o. Zenit nepremičnine, d.d. Zdravstveni center Morje, d.o.o. Triglavko, d.o.o. Croatia Triglav Osiguranje, d.d. Bosnia and Triglav BH Osiguranje, d.d. Polara Invest, d.d. Autocentar BH, d.o.o. Herzegovina Triglav Krajina Kopaonik, a.d. PROF IN, d.o.o. TRI PRO BH, d.o.o. Unis automobili i dijelovi, d.o.o. Serbia Triglav Kopaonik, a.d.o. DU Penzijski fond Triglav, a.d. Montenegro Lovćen osiguranje, a.d.o. Lovćen Avto, a.d.o. Lovćen RE, a.d. Macedonia Vardar osiguruvanje, a.d. Czech Republic Triglav Pojišt'ovna, a.s.
Triglav Group, Presentation for investors INTRODUCTION OF TRIGLAV GROUP
Gross premium written of Triglav Group in period 2004 - 2008
1.200
1024,5 1.000 915,4 818,1 712,7 800 718,4 625,8 624,3 564,9 600 526,5 461,0 In EUR million In EUR 400 185,2 213,4 239,5 246,7 164,6 200 39,8 51,7 59,3
0
2004 2005 2006 2007 2008
Non-Life Life Health Total Structure of GPW in 2008 6%
24%
70% Non Life Life Health
Triglav Group, Presentation for investors INTRODUCTION OF TRIGLAV GROUP
Triglav Group employees as at 31. 12. 2008
5.174 employees: 2.507 in Zavarovalnica Triglav 3.132 in Slovenia 2.042 abroad
Structure according to location Structure according to education
M Sc. & Ph. D. I. IV. Degree 1,4% 17,3% VII. Degree
23,6% Abroad 39,5%
In Slovenia 60,5%
VI. Degree 11,0% V. Degree 46,6%
Triglav Group, Presentation for investors INTRODUCTION OF TRIGLAV GROUP
Shareholders of Zavarovalnica Triglav as per 31. 3. 2009
total domestic foreign legal person natural person
No. of shares 22.735.148 21.693.505 1.041.643 20.913.220 1.821.928 No. of shareholders 30.450 29.988 462 739 29.711
The top ten shareholders of Zavarovalnica Triglav as at 31. 3. 2009
No. of shares Share in %
ZAVOD ZA POKOJNINSKO IN INVALIDSKO ZAVAROVANJE SLOVENIJE, LJUBLJANA 7.836.628 34,47% SLOVENSKA ODŠKODNINSKA DRUŽBA, d.d., LJUBLJANA 6.397.640 28,14% NLB d.d., LJUBLJANA 696.213 3,06% HYPO ALPE ADRIA BANK AG, CELOVEC, AVSTRIJA 470.412 2,07% RADENSKA, d.d., RADENCI 366.944 1,61% HIT d.d., NOVA GORICA 255.408 1,12% NFD 1 DELNIŠKI INVESTICIJSKI SKLAD d.d., LJUBLJANA 238.998 1,05% KINGSHOUSE INVESTMENTS LIMITED, LIMASSOL, CIPER 202.152 0,89% POTEZA NALOŽBE D.O.O., LJUBLJANA 176.418 0,78% UNICREDIT BANK AUSTRIA AG, DUNAJ, AVSTRIJA 162.121 0,71%
Triglav Group, Presentation for investors CONTENT
• Introduction of Triglav Group
• Triglav Group markets
• Triglav Group strategy
• Financial highlights of Triglav Group
Triglav Group, Presentation for investors TRIGLAV GROUP MARKETS
Market share of Triglav Group in Market share of Triglav Group in the Slovenia and west Balkan region of South-east Europe
Triglav Group 22,9% Triglav Group 14,1%
Other Other insurance insurance companies companies 77,1% 85,9%
* West Balkan countries: Croatia, Serbia, Bosnia and * Slovenia, West Balkan, Bulgaria and Romania. Herzegovina, Montenegro, Former Yugoslav republic of Macedonia, Kosovo and Albania.
Triglav Group, Presentation for investors TRIGLAV GROUP MARKETS
Market share and market position of a Triglav Group members by country in 2008
Slovenia 43,1% (1)
Croatia 3,9% (8)
Bosnia in Herzegovina 9,3% (3)
Serbia 3,3% (7)
Montenegro 60,0% (1)
Macedonia 23,8% (1)
Czech R. 0,9% (10)
0% 10% 20% 30% 40% 50% 60% 70% 80%
Triglav Group, Presentation for investors TRIGLAV GROUP MARKETS Gross premium written of Triglav Group members in 2008
GROSS PREMIUM WRITTEN IN 2008 INSURANCE COMPANIES IN EUR million INDEX STRUCTURE 1 ZAVAROVALNICA TRIGLAV 753,9 106 75,7% 2 TRIGLAV ZDRAVSTVENA ZAV. 59,3 115 6,0% 3 TRIGLAV OSIGURANJE 52,3 102 5,3% 4 TRIGLAV BH OSIGURANJE 16,6 110 1,7% 5 TRIGLAV POJIŠT'OVNA 28,4 145 2,9% 6 LOVĆEN OSIGURANJE 37,1 108 3,7% 7 TRIGLAV KOPAONIK 21,0 147 2,1% 8 TRIGLAV KRAJINA KOPAONIK 4,9 0,5% GPW structure by Triglav 9 VARDAR OSIGURUVANJE 22,2 2,2% Group members INSURANCE COMPANIES TOTAL 995,8 111 100,0%
LOVĆEN 10 POZAVAROVALNICA TRIGLAV RE 107,0 122 TRIGLAV TRIGLAV KOPAONIK TRIGLAV KRAJINA OSIGURANJE POJIŠT'OVNA 2,1% KOPAONIK 3,7% 2,9% 0,5%
TRIGLAV BH VARDAR OSIGURANJE OSIGURUVANJE 1,7% 2,2%
TRIGLAV OSIGURANJE 5,3% TRIGLAV ZAVAROVALNICA ZDRAVSTVENA ZAV. TRIGLAV 6,0% 75,7%
Triglav Group, Presentation for investors TRIGLAV GROUP MARKETS Gross premium written as % of GDP
Slovenia 3,8% 1,8%
Croatia 2,4% 0,9%
Serbia 1,6% 0,2%
Czech R. 2,2% 1,5%
EU 15 3,2% 5,9%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
Non Life Life GPW non-life as % of GDP and GPW non-life per capita GPW life as % of GDP and GPW life per capita
1400 2500 EU 15 EU 15 1200 2000 1000 Slovenia 800 1500
600 1000 400 Czech R. GPW per capita (in EUR) Croatia GPW per capita (in EUR) 500 Slovenia 200 Czech R. Serbia Croatia 0 0 Serbia
1,5% 2,0% 2,5% 3,0% 3,5% 4,0% 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% 5,0% 5,5% 6,0 %
GPW as % of GDP GPW as % of GDP
Triglav Group, Presentation for investors CONTENT
• Introduction of Triglav Group
• Triglav Group markets
• Triglav Group strategy
• Financial highlights of Triglav Group
Triglav Group, Presentation for investors TRIGLAV GROUP STRATEGY Mission By providing insurance and other financial services in an accountable and professional manner the Triglav Group is building a safer and richer future for its clients, shareholders and employees.
Vision The Triglav Group will be one of the leading insurance financial groups and one of the three biggest insurance groups in the South east Europe. It will remain to be the biggest insurance group in Slovenia and the Western Balkans.
We will generate sustainable growth of profit in core businesses and assure the capital level that will by 2011 enable us to retain rating from one of the established rating agencies that would not be lover then the best rating of equal sized insurance companies in the region of South east Europe.
Zavarovalnica Triglav will be the driving force behind the further development of the insurance financial group, offering self developed products under its own established brand name. This will be achieved by developing customer relationship management and investing in knowledge and modern technologies. .
Triglav Group, Presentation for investors TRIGLAV GROUP STRATEGY
Basic Strategic Guidelines
We will centre our activities around the key business objectives set out in the strategy of the Triglav Group for the 2009 2011 period:
ensuring client satisfaction with insurance services in the fields of insurance marketing and claims handling; increasing the real scope of operations and retaining the leading position in the insurance markets of Slovenia and the Western Balkans as well as remaining our position among the first three insurance groups in South east Europe; penetrating and developing foreign markets (subject to ongoing conditions); generate sustainable growth of profit in core businesses; assure the capital level that will by 2011 enable us to retain rating from one of the established rating agencies that would not be lover then the best rating of equal sized insurance companies in the region of South east Europe. motivation schemes for employees and assuring adequate standard for employees in the Triglav Group.
Triglav Group, Presentation for investors TRIGLAV GROUP STRATEGY GPW plan of Triglav Group in the period 2008 - 2011
1.400 1212,7 1130,8 1.200 1024,5 1062,6 915,4 1.000 785,6 838,2 718,4 749,9 800 624,3 600 in EUR million EUR in
400 246,7 300,0 239,5 248,7 276,3
200 64,1 68,9 74,4 51,7 59,3
0
2007 2008 2009 2010 2011
Non-life Life Health Total
GPW structure in 2008 GPW structure in 2011
OTHER OTHER COUNTRIES COUNTRIES 21,5% 18,3%
SLOVENIA
81,7% SLOVENIA 78,5%
Triglav Group, Presentation for investors CONTENT
• Introduction of Triglav Group
• Triglav Group markets
• Triglav Group strategy
• Financial highlights of Triglav Group
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Performance of the Triglav Group
In EUR million 2008 2007 Index Gross premium written 1.024,5 915,4 111,9 Gross claims paid 618,0 499,0 123,9 Gross operational costs 298,8 269,6 110,8 Insurance contract provisions 1.904,6 1.814,7 105,0 Equity 527,0 624,9 84,3 Profit after Tax 1,6 54,5 2,9 Return on equtiy 0,3% 9,5% 3 Number of emploeyees as at 31. Dec. 5.174 4.829 107
Important events
Triglav Insurance Company’s stocks were listed on Ljubljana Stock Exchange (September 2008) Rating agency Standard & Poor’s assigned Triglav Group rating “A” with stable midterm outlook (September 2008)
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Performance indicators of the Triglav Group
2008 2007 Ratio between gross claims paid and gross premium written 60,3% 54,5% Ratio between net claims incured and net premium written 62,0% 62,7% Share of gross operating costs of the insurance segment in gross premium written 23,2% 22,7% Gross written premium per employee at the insurance company (in EUR) 220.217 223.057 Equity in total liabilities 19,5% 23,1% Share of gross insurance contract provisions in overall liabilities 70,6% 67,0% Share of financial assets in overall assets 72,8% 77,9% Ratio between financial assets and gross insurance contract provisions 103,1% 116,4%
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Assets structure of the Triglav Group as at 31. 12. 2008
Financial investments Loans and receivables Other financial of reinsurance 11,0% investments 0,1% companies in reinsurance contracts Unit linked insurance 0,1% contract investments Financial derivatives 11,2% 0,0%
Investments in shares, other floating Debt and other fixed rate securities and return securities fund coupons 60,0% 17,5%
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Structure per credit rating NR AAA 27,3% 5,8% BB 0,7%
AA BBB 44,2% 5,3%
A 16,7%
Sensitivity of triglav group’s financial asset to interest- rate risk 31.DECEMBER.2008 Type of security +100bp -100bp Government debt 21.766.397 21.766.397 Financial institution debt 5.226.738 5.226.738 Corporate debt 3.528.698 3.528.698 Structured debt 14.927.312 14.927.312 Total -45.449.146 45.449.146 Impact on Balance sheet -36.252.621 36.252.621 Impact on Profit and loss account -9.196.525 9.196.525
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP Structure of the equity portfolio
Asian Shares Global shares 0,2% 5,2%
Shares in emerging markets 21,5%
Shares in the EU 73,1% Sensitivity of triglav group’s financial asset to equity risk 31.DECEMBER.2008 +10% -10% Shares in the EU 44.112.050 44.112.050 Emerging market shares 12.962.962 12.962.962 Global equity* 3.135.871 3.135.871 Asian equity** 127.995 127.995 TOTAL 60.338.877 -60.338.877 Impact on Balance sheet 43.044.355 -43.044.355 Impact on Profit and loss account 17.294.522 -17.294.522 *Globally diversified equty investmnts **Equity invesmtments in Asia's developed countries (Japan, Hong Kong)
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Key figures for the shares of Zavarovalnica Triglav, d.d.
31.12.2008 31.12.2007 31.12.2006 Number of shares* 22.735.148 5.683.787 5.683.787 Face value of a share (in EUR)** 1,04 1,04 1,04 Book value of a share (in EUR)** 21,23 25,85 20,20 Net earnings per share (in EUR)** 0,66 1,89 0,94 Dividend per share (in EUR)** 0,25 0,13 Share simbol ZVTG (*) 5.683.787 shares were split to 22.735.148 shares on 6. 6. 2008
(**) In the calculation the share split was taken into account
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Net earnings per share and dividend per share of Zavarovalnica Triglav, d.d.
2,0 1,89 0,30
1,8 0,25 1,6 0,25 1,4 0,20 1,10 1,2 0,94
1,0 0,15
0,8 0,52 0,66 0,13 0,10 0,6 EUR) share(in per Dividend Net earnings per share (in EUR) share(in per earningsNet 0,11 0,4 0,05 0,2 0,04
0,0 0,00
2004-SRS 2005-SRS 2006-MSRP 2007-MSRP 2008-MSRP
Net earnings per share (in EUR) Dividend per share (in EUR)
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Book value per share of Zavarovalnica Triglav, d.d.
30
28 25,9 26
24 20,2 21,2 22
20 in in EUR 18
16 11,6 14 10,5 12
10
2004-SRS 2005-SRS 2006-MSRP 2007-MSRP 2008-MSRP
Book value of a share (in EUR)
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Value of a ZVTG and SBI on Ljubljana Stock Exchange
50 9.000 45 8.000 40 7.000 35 6.000 30 5.000 25 ZVTG 4.000 20 SBI 20 3.000 15 10 2.000 5 1.000 0 0
8 8 8 8 8 9 9 9 9 08 08 09 00 008 00 .200 9.200 7.1.20 9.9.2008 23. 7.10.200 4.11.200 2.12.20 13.1.2009 2 10.2.200 24.2 10.3.200 24.3.2 21.10.20 18.11.2 16.12.200 30.12.2
ZVTG SBI 20
Triglav Group, Presentation for investors FINANCIAL HIGHLIGHTS OF TRIGLAV GROUP
Actuality events
High compensation claims due to catastrophic summer storms aprox. 60.5 EUR million; premium is increased in November – major competitors in Slovenia are following, Financial crises impact Total impact of events on: Triglav Insurance Company – 46,9 EUR million Triglav group 52,6 EUR million
Triglav Group, Presentation for investors CONTACTS:
Tomaž Rotar +386 1 47 47 556 Member of the management board [email protected]
Uroš Ivanc +386 1 47 47 468 Executive director finance [email protected]
Igor Stebernak +386 1 47 47 414 Director controlling [email protected]
Triglav Group, Presentation for investors DISCLAIMER:
The information, statements or data contained herein has been prepared by Triglav Corporate officers. Triglav Insurance Company Ltd. or any member of Triglav Group, or any Triglav Insurance Company employee or representative accepts no responsibility for the information, statements or data contained herein or omitted here from, and will not be liable to any third party for any reason whatsoever relating to the information, statements or data contained herein or omitted here from. Such information, statements or data may not be prepared according to the same standards and requirements than the information, statements or data included in Triglav’s own reports and press releases are prepared to, and accordingly the level of information and materiality and nature of the disclosures may be different. Undue reliance should not be placed on the information, statements or data contained herein because they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results to differ materially from those expressed or implied in such information, statements or data. Moreover, the information, statements and data contained herein have not been, and will not be, updated or supplemented with new or additional information, statements or data.
Triglav Group, Presentation for investors