Statistical Insurance Bulletin 2011 Statistical Insurance Bulletin 2011 1

Statistical Insurance Bulletin 2011

Ljubljana, August 2011 Statistical Insurance Bulletin 2011 2

Publisher SLOVENIAN INSURANCE ASSOCIATION Commercial Interest Association of Slovenian Insurance Companies Železna cesta 14, p. p. 2512 SI – 1000 LJUBLJANA SLOVENIA Telephone (+386)-(0)1-473 56 99 Fax (+386)-(0)1-473 56 92 Email [email protected] Website www.zav-zdruzenje.si

Responsible person Mirko Kaluža, Director

STATISTICAL INSURANCE BULLETIN, SZZ, Ljubljana, 2011

Text, tables and graphs • Tomaž Mancini, Statistics, Analysis and Information Technology prepared by • Education and Training Committee (Chapter IV) • Nuclear Insurance and Reinsurance Pool (Chapter V, point 3)

Production Pegaz International, d. o. o. Ljubljana Design Luka Mancini, Lukatarina Photographs Tomaž Lunder Photograph on p. 7 Janez Vlachy Translated by AMIDAS d. o. o., Ljubljana Printed by Littera picta, d. o. o. Print run 400 copies

ISSN 1318-7295 Statistical Insurance Bulletin 2011 3

Contents

5 Development of the Slovenian insurance market 7 Foreword 9 I. The Slovenian economy in 2010 13 II. The Slovenian Insurance Association in 2010 15 III. Presentation of members of the Slovenian Insurance Association (as at 7. 7. 2011) 20 Adriatic Slovenica, Zavarovalna družba, d. d. 21 Allianz Hungaria Zrt., Zavarovalnica, d. d., Ljubljana branch offi ce 22 ARAG zavarovanje pravne zaščite, d. d. 23 ERGO, zavarovalnica, d.d 24 Generali Zavarovalnica d. d. 25 GRAWE Zavarovalnica, d. d. 26 Kapitalska družba pokojninskega in invalidskega zavarovanja, d. d. (KAD) 27 KD Življenje, zavarovalnica, d. d. 28 Merkur zavarovalnica, d. d. 29 NLB Vita, življenjska zavarovalnica d. d. Ljubljana 30 Pozavarovalnica Sava, d. d. 31 Pozavarovalnica Triglav RE, d. d. 32 SID – Prva kreditna zavarovalnica, d. d. (SID – PKZ) 33 Sklad obrtnikov in podjetnikov (SOP) 34 TRIGLAV, Zdravstvena zavarovalnica, d. d. 35 Victoria-Volksbanken, zavarovalniška delniška družba, Slovenian branch offi ce 36 Vzajemna zdravstvena zavarovalnica, d. v. z. 37 Wiener Städtische zavarovalnica, Ljubljana branch offi ce 38 Zavarovalnica Maribor, d. d. 39 Zavarovalnica Tilia, d. d. 40 Zavarovalnica Triglav, d. d 43 IV. Employees in insurance companies in 2010 47 V. Insurance and reinsurance activities in 2010 49 1. Insurance activity 53 1.1 Life insurance 56 1.1.1 Pension insurance 57 1.2. All other insurance (non-life or property) 59 2. Reinsurance activity 62 3. Nuclear Insurance and Reinsurance Pool 63 4. Data by individual insurance class and type 67 4.1 Accident insurance 68 4.2 Health insurance 69 4.3 Casco insurance 70 4.4 Goods in transit insurance 71 4.5 Property insurance 72 4.6 Liability insurance 73 4.7 Credit insurance 74 4.8 Suretyship insurance and miscellaneous fi nancial loss insurance 75 4.9 Legal expenses insurance and tourist assistance insurance 77 VI. International position of Slovenian insurance 81 VII. Chronological overview of insurance activity in Slovenian ethnic territory The value of construction works performed in April 2011 was down more than 27% on the value of such works performed in April 2010. Source: www.stat.si Statistical Insurance Bulletin 2011 5

Development of the Slovenian insurance market

amounts in EUR 000

Insurance

Year Premiums Claims Claims ratio (%) Annual growth rate*

TotalLifeNon-life Total Life Non-life Total Life Non-life Total Life Non-life

2002 1,178,845 267,436 911,409 714,668 90,485 624,183 60.6 60.6 60.6 116.1 123.2 114.1

2003 1,275,102 305,003 970,099 790,866 114,106 676,760 62.0 62.0 62.0 111.7 117.8 109.9

2004 1,456,887 429,013 1,027,874 931,938 189,003 742,935 64.0 64.0 64.0 116.8 143.8 108.3

2005 1,549,167 464,834 1,084,334 874,895 136,348 738,547 56.5 56.5 56.5 106.6 108.6 105.7

2006 1,725,304 540,655 1,184,649 949,076 149,088 799,988 55.0 55.0 55.0 111.4 116.3 109.3

2007 1,893,980 609,266 1,284,714 1,023,300 161,828 861,472 54.0 54.0 54.0 109.8 112.7 108.4

2008 2,018,960 642,653 1,376,307 1,204,208 177,589 1,026,619 59.6 59.6 59.6 106.6 105.5 107.1

2009 2,072,923 630,089 1,442,834 1,237,951 186,446 1,051,505 59.7 29.6 72.9 102.7 98.0 104.8

2010 2,094,342 656,013 1,438,329 1,242,833 245,624 997,209 59.3 37.4 69.3 101.0 104.1 99.7

Reinsurance

Year Premiums Claims Claims ratio (%) Annual growth rate*

TotalLifeNon-life Total Life Non-life Total Life Non-life Total Life Non-life

2002 126,451 1,047 125,404 64,657 728 63,929 51.1 69.6 51.0 132.0 113.9 132.2

2003 140,894 1,007 139,887 73,459 567 72,892 52.1 56.6 52.1 115.1 99.2 115.2

2004 148,905 953 147,952 81,805 241 81,564 54.9 25.4 55.1 108.1 97.0 108.1

2005 161,361 1,007 160,354 78,671 222 78,449 48.8 22.0 48.9 108.6 105.7 108.6

2006 180,619 642 179,977 101,767 252 101,515 56.3 39.3 56.4 111.9 63.8 112.2

2007 206,165 704 205,461 115,181 302 114,879 55.9 42.9 55.9 114.1 109.7 114.2

2008 241,738 724 241,014 200,375 162 200,213 82.9 22.4 83.1 117.3 102.8 117.3

2009 261,109 643 260,466 171,828 137 171,691 65.8 21.3 65.9 108.0 88.8 108.1

2010 263,029 794 262,235 139,930 179 139,751 53.2 22.5 53.3 100.7 123.5 100.7

* Premium growth index (excluding the inflation rate). Including the inflation rate of 1.9% (Dec. 2010/ Dec. 2009) based on HICP, the total insurance premium would be EUR 2.055 billion and the premium growth index would be 99.10. Sources: SZZ, SURS In 2009 Slovenia had 49 museums, 29 museum collections, 4 special museums for the fine art heritage, 55 fine art exhibition spaces and galleries and 33 other types of museum and exhibition space. Source: www.stat.si Statistical Insurance Bulletin 2011 7

Foreword

The dynamic growth of the Slovenian insurance market that has character- ised the past 20 years slowed down last year, and compared to 2009 it showed a rise of just a percentage point. It is interesting to note a drop in the total premiums written for property insurance of just under a percentage point below the level of the previous year, something that can be ascribed to the very strong pricing competition (most of all in motor vehicle liability insurance) and the deterioration of business conditions in certain sectors of the economy. An almost 4-percent growth in life insurance premiums helped maintain the positive growth of total premiums. With relatively modest general economic growth, the insurance sector has nevertheless retained its character of being a driver of economic activity. Both insurance companies and reinsurance companies have maintained their stable economic position. Total gross premiums written by the 19 insurance companies in 2010 amounted to EUR 2.094 billion, representing 5.81 percent of GDP, while in the same period the two reinsurance companies generated premiums totalling EUR 263 million. The growth of reinsurance premiums was a little lower than the growth of insurance premiums. The events of the past year indicate that the destructive consequences of the weather have become a permanent feature that insurers must factor in. After two years of damage caused by hail, last year saw major flooding. The damage incurred by insurance companies was in fact less than the actual damage caused, which points to the relatively poor level of insurance cover and the general underestimation of the effects of climate change. Meanwhile 2010 was a year of anticipated amendments to legislation govern- ing pension and health insurance. Unfortunately the solutions involved in the envisaged pension reform have been put off for at least a year, while debate continues over healthcare reform, which envisages the abolition of voluntary supplementary health insurance. Overly quick decisions might negatively impact the financial sustainability of the pension and healthcare systems. In seeking answers to the question of how to raise the confidence of consumers of financial services, insurance companies have become involved in the national programme to raise public awareness. To a certain extent this also represents a challenge to the Solvency II directive, which brings to the fore consumers and their protection. Recently this directive has also constituted the main issue at hand for Slov- enian insurance companies. Prior tests of how insurance companies are prepared for it have shown that the financial standing of the insurance companies is appropriate and should not cause any major problems. The new directive is also one of the main causes of change to insurance legislation, and preparations begun last year are now in full swing. The Statistical Insurance Bulletin is a publication that covers data on almost the entire Slovenian insurance industry. The country’s insurance market involves 20 insurance companies and two reinsurance companies, of which 21 are members of the association for which we gather and present data. The Bulletin also shows certain comparisons with the international environment. A variety of data indicate trends pointing to continuous growth that has not even been halted by the recession. The principles on which our business is based have also been confirmed in practice, so we are convinced that we will retain a large measure of consumer confidence in insurance services in the future, and that we will continue to witness dynamic growth and development in Slovenia’s insurance sector.

Mirko Kaluža, Director In 2009 a total of 19 professional orchestras and choirs were operating in Slovenia, and they performed 1784 concerts. Source: www.stat.si Statistical Insurance Bulletin 2011 9

I. The Slovenian economy in 2010

In 2010 the Slovenian economy once again operated in a crisis environment, although the impacts of the crisis were already slightly less pronounced than a year earlier. The crisis was noted most severely in the increased number of bankruptcies and consequently in higher unemployment. Construction business, which in the years leading up to the crisis had been one of the main drivers of economic growth, was almost at a standstill. We have been witness to the “undermining of the majority of pillars” of Slovenian construction operations, which lost a range of previously agreed business at home and abroad. The fate of uncompleted projects has become uncertain. Scandals and wrongdoing by the top executives of some major Slovenian companies came to light, along with the inhumane treatment of foreign construction workers. Respect of values such as honesty, ethics and morals, as well as payment discipline, are at an unacceptably low level in Slovenian business circles. The exact opposite of this can be seen in the young and technologically visionary companies that are experiencing enviable growth. We should mention just the rapid development of the photovoltaic module sector and the installation of solar power plants. The growth rate of capacities for operational solar power plants in Slovenia was a full 235% in 2010 relative to the previous year (source: ZSFI). Total installed capacity of Slovenian solar power plants already exceeds 35 MW, but for the moment their share of total power generation represents just 0.3%. Operations are also smooth and successful in Slovenia’s tool-making industry, which employs highly qualified experts who are able to adapt tool production rapidly to client requirements.

During the economic crisis, which is being felt most strongly by workers, the Government has been striving to pass pension and healthcare reform, although they do not have a great deal in common with the economic crisis. Social reforms are being dictated by demographic trends that characterise the mature European population, which includes Slovenia. In July 2010 this country became the 32nd member of the OECD, although this does not guarantee for Slovenia any faster progress. It is only overcoming the economic crisis slowly and with difficulty. Yet certain key Slovenian economic indicators for 2010, which we present below, do nevertheless arouse some optimism.

Industrial production increased by just under 11% last December compared to December in the crisis year of 2009. The highest growth was in May and August.

Exports of goods and services amounted at the end of 2010 to EUR 18.251 billion, but this was less than imports (EUR 19.504 billion), resulting in a trade deficit of EUR 1.253 billion. In December, import/export coverage amounted to 92.9%.

Gross Domestic Product (GDP) grew last year by 1.2 percentage points, and in absolute terms current estimates put it at just over EUR 36 billion, or EUR 17,602 per capita. Positive growth was spurred mainly by the export revival. Meanwhile construction, which had previously been the main driver of growth, was set back by about five years.

Statistical Insurance Bulletin 2011 10

The national budget deficit at the end of 2010 stood at EUR 1.987 billion, or 5.5% of GDP, which according to audited data is less than in 2009. However, foreign debt increased considerably in this period, and at the end of 2010 amounted to EUR 42.3 billion gross. This is almost 5 billion more than last year’s GDP. There was also an increase in consolidated public debt, which amounted at the end of 2010 to EUR 13.704 billion, or 38% of GDP.

Inflation rose in 2010 relative to 2009 (December/December) by one tenth of a percentage point to stand at 1.9%. The Government is tackling inflation successfully, since in 2007 the inflation rate was still three times higher.

The average gross wage paid in December 2010 amounted to EUR 1,534, a rise of 3.1% over December 2009. The average net wage was 35.6 percentage points lower than the gross wage, and amounted to EUR 989 (3.3% higher than a year earlier). The minimum wage, which was set in law in February 2010 (EUR 734.15 gross, EUR 562 net), barely covers the estimated minimum essential costs for one adult person. In December 2010 the minimum wage was received by 5.3% of employees. The fact that the existing fiscal regime is most advantageous to the wealthier strata of society can be seen in the fact that in Slovenia the share of property tax as a percentage of GDP is among the lowest in the European Union (8.4% in 2009). In Denmark, for instance, it amounts to 30%, while the EU average is 12.3%.

Investments by foreign investors rose up to the end of last year to just under EUR 516 million. The value of all foreign investment in the Slovenian economy has reached EUR 11 billion. Despite the fact that foreign interests value the education and qualifications of Slovenian workers, and that this represents Statistical Insurance Bulletin 2011 11

a major motivation for investors, Slovenia still only ranks 33rd on the world scale of attractiveness for investment. The crisis has cut much deeper into the investment enthusiasm of Slovenian companies abroad. The extent and gross value of domestic investment have declined since 2009. Construction of housing has almost come to a standstill, while the fulfilment of already envisaged projects is awaiting better times.

The number of people out of work increased to 110,021 up to the end of 2010, a rise of 13.8% over 2009, with the rate of registered unemployed workers growing to 11.8% and still rising. In January 2011 it was already at 12.3%.

The financial and economic crisis hit the banking sector more severely than it did insurance companies. The 2010 balance-sheet total for banks declined by 2.6 percentage points, and amounted to EUR 50.3 billion. The banks even recorded a loss in 2010. Analysts have found the reasons for this primarily in impairments and increased provisions.

The stock index of the Ljubljana Securities Exchange with the SBITOP des- ignation fell from 2009 by 13.5%, with exchange capitalisation amounting to almost EUR 7 billion. A total of 160 securities were being traded at the end of 2010. In December last year, trading took place for the first time via the international Xetra system, which made the Slovenian securities market more accessible to foreign investors.

Sources: SURS, BS, LB, ZRSZ, EUROSTAT In calendar year 2010 a total of 19,694 students, of which almost two thirds were women, graduated from professional colleges and university institutions. Source: www.stat.si Statistical Insurance Bulletin 2011 13

II. The Slovenian Insurance Association in 2010

The Slovenian Insurance Association is evolving into a mature organisation, and the year 2012 will see it celebrate its 20th anniversary. In 2010 it went through its first round of personnel retirements, and a generational switch is also taking place this year. The average age of employees is gradually falling, and the gender breakdown is changing in favour of women. Owing to the inclusion of the insurance sector in various projects pursued by the state and international organisations, and also owing to internal project initiatives, the workload for the Association’s team is growing each year, but the number of employees has stayed the same. All the work is performed by a 15-member team, so the Association’s productivity is growing from year to year.

Organisational chart of the Slovenian Insurance Association (SZZ) (as at July 2011)

ASSEMBLY

COUNCIL Insurance Mediation Centre* Ombudsman* DIRECTOR

General and Information Compensation Organisational Aﬀ airs Green Card Bureau Guarantee Fund and Accounting Service Centre Body

Council of the GCB Commission of the Guarantee Fund

Expert Committee of the GCB

Property Statistics, Motor Personal Insurance Analysis Education Insurance Lines and IT

Motor Insurance Life & Accident Property Insurance Education IT Committee Committee Insurance Committee Committee Committee

Commission for the Health Insurance Agricultural Editorial Committee Slovenian Prevention of Insurance Fraud Committee Insurance Section Insurance Days' Organising Committee Pension Insurance Transport and Credit Actuarial Section Committee Insurance Committee Exam Committee

Legal Section Financial Section

Commission for Money Laundering Prevention

Commission on Accounts and Tax Aﬀ airs

Internal Audit Section

* SZZ provides only material basis The value of produce sold by private producers at food markets in 2010 was 2% higher than in 2009. Source: www.stat.si Statistical Insurance Bulletin 2011 15

III. Presentation of members of the Slovenian Insurance Association (as at 7. 7. 2011)

The number of members in the Slovenian insurance market increased to 21 in 2010. Last year saw the life insurance provider ERGO join the membership, and this year its statistical data have been included for the first time in all the presented collective data. The SZZ membership has also included for a number of years the Pension Fund Management Company (Kapitalska družba pokojninskega in invalidskega zavarovanja – KAD), which does not operate entirely under the Insurance Act, so we call it and the Fund for Craftsmen and Entrepreneurs (SOP) “other SZZ members”. This year KAD is preparing the organisational and commercial separation of its insurance business and the founding of a new life insurance company, which will be state owned. The new insurance company will manage three pension funds, of which one is intended for the pension insurance of civil servants. If the new insurance company operates entirely pursuant to the Insurance Act and becomes a member of the SZZ, we will count it as a “classical” insurance company in statistical presentations.

Number of insurance companies in individual years, various criteria

Year 2002 2003 2004 2005 20062007 2008 2009 2010 Number of companies active in the insurance market* Insurance companies 14 15 15 15 16 16 16 18 19 Reinsurance companies 2 2 2 2 2 2 2 2 2 Total companies 16 17 17 17 18 18 18 20 21 Of which, SZZ members 15 16 17 17 18 18 18 20 21 Insurance companies, various criteria • by legislation** Operate under Insurance Act (insurance companies) 11 12 12 13 14 14 14 16 17 Do not operate under Insurance Act (other companies) 3 3 3 2 2 2 2 2 2 • by portfolio Composite 9 9 8 7 8 8 8 10 10 Life only 3 4 3 4 4 4 4 4 5 Property only 2 2 4 4 4 4 4 4 4 • by organisational form Joint-stock company All 12 13 13 13 14 14 14 16 17 Majority foreign capital 3 4 5 4 5 5 5 7 8 Mutual 1 1 1 1 1 1 1 1 1 Other 1 1 1 1 1 1 1 1 1 Branches of insurance companies from EU countries – – – 2 2 2 2 3 3

* Companies that operated on the market in individual years whose premiums are included in insurance statistics. ** Insurance companies with regard to valid Insurance Act in individual years. Source: SZZ Statistical Insurance Bulletin 2011 16

In November 2010, Zavarovalnica Triglav established the holding company Triglav International, which ensures the consolidation of companies outside Slovenia in which it has a majority stake. The insurance company has a controlling stake in eight companies in six countries (Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Macedonia and Czech Republic). A capital injection is envisaged for the majority of the companies. In the one-year period the boards and supervisory councils of some insurance companies have undergone personnel changes and changes to their ownership structure. Some companies have cut their staffing levels. The Victoria-Volksbanken insurance company subsidiary and the life insurance company ERGO, which are members of the ERGO insurance group, moved into a common building in the Črnuče area of Ljubljana. The company SID – Prva kreditna zavarovalnica (First Credit Insurance Company) moved to a new location. The presentation pages of SZZ members incorpo- rates all changes to their general data that have taken place up until 20 June 2011. The list below shows the gross premiums written by the 21 members of the SZZ in 2010. The collective data on their operations are presented in subsequent chap- ters of the Bulletin.

Composite insurance companies: in EUR m

Zavarovalnica Triglav, d. d, Ljubljana 720 Adriatic Slovenica, Zavarovalna družba, d. d, Koper 261 Zavarovalnica Maribor, d. d., Maribor 260 Generali Zavarovalnica d. d., Ljubljana 80 Zavarovalnica Tilia, d. d., Novo mesto 74 Merkur zavarovalnica, d. d., Ljubljana 47 GRAWE Zavarovalnica, d. d., Maribor 35 Wiener Städtische zavarovalnica, d. d., Ljubljana branch office 19 Victoria-Volksbanken, zavarovalniška delniška družba, Slovenian branch office, Maribor 3 Allianz Hungaria Zrt., Zavarovalnica, d. d., Ljubljana branch office 3

Specialist insurance companies:

Vzajemna zdravstvena zavarovalnica, d. v. z., Ljubljana 240 TRIGLAV, Zdravstvena zavarovalnica, d. d., Koper 73 KD Življenje, zavarovalnica, d. d., Ljubljana 70 NLB Vita, življenjska zavarovalnica d. d. Ljubljana 32 SID – Prva kreditna zavarovalnica, d. d., Ljubljana (SID – PKZ) 20 ERGO, Zavarovalnica, d. d., Ljubljana 3.5 ARAG zavarovanje pravne zaščite, d. d., Ljubljana 2

Other SZZ members:

Kapitalska družba pokojninskega in invalidskega zavarovanja, d. d., Ljubljana (KAD) 147 Sklad obrtnikov in podjetnikov, Ljubljana (SOP) 3.6

Reinsurance companies:

Pozavarovalnica Sava, d. d., Ljubljana 143 Pozavarovalnica Triglav RE, d. d., Ljubljana 120 Statistical Insurance Bulletin 2011 17

Market shares of insurance companies 2010* in %

Insurance class Insurance companies All business Life Non-life Total 100.00 100.00 100.00 Triglav 37.05 41.13 35.61 Adriatic Slovenica 13.44 2.71 17.21 Maribor 13.36 14.12 13.09 Vzajemna 12.36 – 16.70 Generali 4.13 3.60 4.32 Tilia 3.80 2.02 4.42 TRIGLAV, Zdravstvena 3.74 – 5.05 KD Življenje 3.61 13.89 – Merkur 2.44 7.97 0.49 GRAWE 1.80 4.46 0.86 NLB Vita 1.66 6.05 0.12 SID – PKZ 1.02 – 1.38 Wiener Städtische 1.00 2.86 0.34 ERGO 0.18 0.70 – Allianz 0.17 0.00 0.23 Victoria-Volksbanken 0.15 0.51 0.02 ARAG 0.10 – 0.14

* Market shares based on total premiums written by 16 insurance companies that operate under the Insurance Act (EUR 1,943,199,742). Source: SZZ Statistical Insurance Bulletin 2011 18

Market shares of reinsurance companies 2010* in %

Insurance class Reinsurance companies All business Life Non-life * The share of individual reinsurance Total 100.00 100.00 100.00 company in the total gross reinsurance Sava Re 54.31 69.84 54.27 premium written of both Slovenian reinsurers (EUR 263,029,025). Triglav RE 45.69 30.16 45.73 Source: SZZ

Market shares of other members of the SIA 2010* in %

Insurance class Other members of the SZZ * Market shares based on total All business Life Non-life premiums written by two other SZZ members (EUR 151,143,059). 100.00 100.00 100.00 Total Companies that do not operate Kapitalska družba (KAD) 97.59 97.59 – or only partially operate under the Insurance Act are shown in this table. Sklad obrtnikov in podjetnikov (SOP) 2.41 2.41 – Source: SZZ

Market shares of insurance companies in % and other SZZ members 2010* Insurance companies Insurance class and other SZZ members All business Life Non-life Total 100.00 100.00 100.00 Triglav 34.37 31.65 35.61 Adriatic Slovenica 12.47 2.08 17.21 Maribor 12.40 10.87 13.09 Vzajemna 11.47 – 16.70 Kapitalska družba (KAD)** 7.04 22.48 – Generali 3.83 2.77 4.32 Tilia 3.52 1.55 4.42 TRIGLAV, Zdravstvena 3.47 – 5.05 KD Življenje 3.35 10.69 – Merkur 2.26 6.14 0.49 GRAWE 1.67 3.43 0.86 NLB Vita 1.54 4.65 0.12 SID – PKZ 0.95 – 1.38 * Market shares based on total premiums written by 17 insurance Wiener Städtische 0.92 2.20 0.34 companies and two other SZZ Sklad obrtnikov in podjetnikov (SOP)** 0.17 0.56 – members (EUR 2,094,342,801). ERGO 0.17 0.54 – ** Insurance companies which, under the Insurance Act, are not classiﬁ ed Allianz 0.16 – 0.23 as classic insurance companies, and Victoria-Volksbanken 0.14 0.39 0.02 which we therefore refer to as “other SZZ members”. ARAG 0.09 – 0.14 Source: SZZ Statistical Insurance Bulletin 2011 19

Market shares of life insurers 2010 amounts in EUR

Life insurance premiums Insurance companies and other Market shares* (%) of this PIP** Life insurance premiums SZZ members Tot al under ZPIZ-1 excluding PIP under ZPIZ-1 Total 656,013,340 172,681,808 483,331,532 100.00 Triglav 207,631,293 21,280,476 186,350,817 38.56 Kapitalska družba (KAD) 147,497,371 147,497,371 – – Maribor 71,308,964 – 71,308,964 14.75 KD Življenje 70,106,104 – 70,106,104 14.50 Merkur 40,261,797 – 40,261,797 8.33 NLB Vita 30,522,131 – 30,522,131 6.31 GRAWE 22,493,383 – 22,493,383 4.65 Generali 18,170,808 2,900,440 15,270,368 3.16 Wiener Städtische 14,417,137 – 14,417,137 2.98 Adriatic Slovenica 13,657,131 1,003,521 12,653,610 2.62 Tilia 10,199,393 – 10,199,393 2.11 Sklad obrtnikov in podjetnikov (SOP) 3,645,688 – 3,645,688 0.75 ERGO 3,518,200 – 3,518,200 0.73 Victoria-Volksbanken 2,583,940 – 2,583,940 0.53

* Market shares based on total sum of gross premiums written by insurance companies for life insurance excluding premiums for pension insurance under ZPIZ-1 (EUR 483,331,532). ** PIP = Pension Insurance Premium, collected in terms of the Pension and Disability Insurance Act (ZPIZ-1). Source: SZZ

Operating eﬃ ciency of (re)insurance companies in 2010 and their nominal growth of GWP

Gross premium written Companies Number of (in order of premium per employee) Tot al Per employee Growth employees* (EUR 000) (EUR 000) (2009=100)

Total 6,234 – – – Reinsurance companies 106 263,029 2,481 100.7 Pozavarovalnica Triglav RE 38 120,167 3,162 105.4 Pozavarovalnica Sava 68 142,862 2,101 97.1 Insurance companies and other SZZ members 6,128 2,094,343 342 104.9 Kapitalska družba (KAD) 115 147,497 1,283 105.9 TRIGLAV, Zdravstvena 78 72,661 932 108.0 NLB Vita 35 32,250 921 133.2 Wiener Städtische 22 19,352 880 160.5 Vzajemna 292 240,263 823 96.7 Victoria-Volksbanken 6 2,902 484 124.7 KD Življenje 182 70,106 385 102.0 SID – Prva kreditna zavarovalnica 53 19,878 375 179.6 Allianz 9 3,333 370 168.4 Merkur 132 47,359 359 105.0 ERGO 10 3,518 352 245.0 Maribor 874 259,599 297 97.6 Triglav 2,441 719,864 295 96.9 Adriatic Slovenica 951 261,180 275 100.2 Generali 337 80,252 238 115.9 GRAWE 166 34,917 210 98.7 Tilia 387 73,785 191 102.3 ARAG 12 1,981 165 107.9 Sklad obrtnikov in podjetnikov (SOP) 26 3,646 140 88.8

* Employees as at 31 December 2010. Source: SZZ Statistical Insurance Bulletin 2011 20

ADRIATIC SLOVENICA, Zavarovalna družba d.d.

Address Ljubljanska cesta 3a, SI – 6503 Koper/Capodistria Website www.adriatic-slovenica.si Email [email protected] Telephone (+386)-(0)5-66 43 100 Fax (+386)-(0)5-66 43 109

Chairman of the Supervisory Board Janez Bojc Chairman of the Board of Management Gabrijel Škof t (+386)-(0)5-66 43 101 Member of the Board of Management Matej Cergolj

Type of insurance company composite Form of organisation joint-stock company Date of registration 20 November 1990 No. of full-time employees (31 December 2010) 951 No. of all-level business units 154 No. of top-level business units 9 branch offices Share of foreign capital 0% Biggest shareholders collectively represent 100% Of this KD Group, d. d., Ljubljana 100%

Gross premiums written 2010 EUR261,179,709

Gross premiums written income by class 2010

Voluntary health 37.3% Accident 7.4%

Other 2.7%

Life 5.2%

Other liability 2.3 %

Motor casco 15.7% Motor liability 19.9%

Property 9.5%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 21

podružnica Ljubljana

Address Dunajska cesta 167, SI – 1000 Ljubljana Website www.allianz.si Email [email protected] Telephone (+386)-(0)1-58 09 480 Fax (+386)-(0)1-58 09 481

Director of the branch Iztok Cimperman t (+386)-(0)1-58 09 480

Type of insurance company composite Form of organisation branch of EU company Date of registration 22 November 2007 No. of full-time employees (31 December 2010) 9 No. of all-level business units 1 No. of top-level business units 1 head office of the branch Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this Allianz Hungaria Zrt., Budimpešta 100%

Gross premiums written 2010 EUR3,332,847

Gross premiums written income by class 2010

Other liability 39.1%

Other 0.4% Aircraft casco 2.0%

Miscellaneous financial loss 6.6%

Property 51.8%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 22

ARAG zavarovanje pravne zaščite, d. d.

Address Železna cesta 14, SI – 1000 Ljubljana Website www.arag.si Email [email protected] Telephone (+386)-(0)1-236 41 81 Fax (+386)-(0)1-436 43 91

Chairman of the Supervisory Board Herbert Kittinger Chairman of the Board of Management Robert Kalcher t (+386)-(0)1-236 41 81 Member of the Board of Management Marko Vončina

Type of insurance company legal expenses insurance Form of organisation joint-stock company Date of registration 10 March 2004 No. of full-time employees (31 December 2010) 12 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this ARAG Österreich Allgemeine Rechtsschutzversicherung AG, Dunaj 100%

Gross premiums written 2010 EUR1,981,005

Gross premiums written income by class 2010

Legal expenses 100%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 23

ERGO Zavarovalnica, d. d.

Address Šlandrova ulica 4, SI – 1231 Ljubljana-Črnuče Website www.ergo.si Email [email protected] Telephone (+386)-(0)1-600 50 40 Fax (+386)-(0)1-600 50 39

Chairman of the Supervisory Board Thomas Herbert Schöllkopf Chairwoman of the Board of Management Andreja Kovačič t (+386)-(0)1-600 50 30 Member of the Board of Management Marija Soklič

Type of insurance company life Form of organisation joint-stock company Date of registration 1 July 2008 No. of full-time employees (31 December 2010) 10 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this ERGO Austria International AG, Dunaj, Avstrija 100%

Gross premiums written 2010 EUR3,518,200

Gross premiums written income by class 2010

Life 100%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 24

GENERALI Zavarovalnica, d. d. Ljubljana

Address Kržičeva ulica 3, SI – 1000 Ljubljana Website www.generali.si Email [email protected] Telephone (+386)-(0)1-47 57 100 Fax (+386)-(0)1-47 57 103

Chairman of the Supervisory Board Lorenzo Kravina Chairman of the Board of Management Gregor Pilgram t (+386)-(0)1-47 57 111 Member of the Board of Management Vanja Hrovat

Type of insurance company composite Form of organisation joint-stock company Date of registration 18 March 1997 No. of full-time employees (31 December 2010) 337 No. of all-level business units 8 No. of top-level business units 1 head office Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this Generali PPF Holding B.V., Praga 100%

Gross premiums written 2010 EUR80,252,364

Gross premiums written income by class 2010

Other 1.6% Accident 7.1%

Life 22.6% Motor casco 18.9%

Other liability 3.0%

Property 16.8%

Motor liability 29.9%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 25

GRAWE Zavarovalnica, d. d.

Address Gregorčičeva ulica 39, SI – 2000 Maribor Website www.grawe.si Email [email protected] Telephone (+386)-(0)2-22 85 500 Fax (+386)-(0)2-22 85 526

Chairman of the Supervisory Board Othmar Ederer Chairman of the Board of Management Božo Emeršič t (+386)-(0)2-22 85 502 Members of the Board of Management Klaus Scheitegel, Marko Mikič

Type of insurance company composite Form of organisation joint-stock company Date of registration 23 January 1991 No. of full-time employees (31 December 2010) 166 No. of all-level business units 12 No. of top-level business units 1 branch office Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this Grazer Wechselseitige Versicherung AG, Graz 100%

Gross premiums written 2010 EUR34,916,962

Gross premiums written income by class 2010

Other 0.2% Accident 9.5%

Motor casco 3.9%

Life 64.4% Property 13.1%

Motor liability 7.7%

Other liability 1.2%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 26

Kapitalska družba pokojninskega in invalidskega zavarovanja, d. d.

Address Dunajska cesta 119, SI – 1000 Ljubljana Website www.kapitalska-druzba.si Email [email protected] Telephone (+386)-(0)1-47 46 700 Fax (+386)-(0)1-47 46 747

Chairman of the Supervisory Board Roman Dobnikar Chairman of the Board of Management Borut Jamnik t (+386)-(0)1-47 46 702 Members of the Board of Management Anja Strojin Štampar, Bachtiar Djalil

Type of insurance company company founded under pension law (ZPIZ) Form of organisation joint-stock company Date of registration 18 December 1996 No. of full-time employees (31 December 2010) 115 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital 0% Biggest shareholders collectively represent 100% Of this Republic of Slovenia 100%

Gross premiums written 2010 EUR147,497,371

Gross premiums written income by class 2010

Pensions 100%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 27

KD Življenje, zavarovalnica, d. d.

Address Celovška cesta 206, SI – 1000 Ljubljana Website www.kd-zivljenje.si Email [email protected] Telephone (+386)-(0)1-58 26 400 Fax (+386)-(0)1-51 81 995

Chairman of the Supervisory Board Aleksander Sekavčnik Chairman of the Board of Management Matija Šenk t (+386)-(0)1-58 26 560 Members of the Board of Management Ingrid Kuk, Jožica Palčič

Type of insurance company life insurance Form of organisation joint-stock company Date of registration 3 January 2005 No. of full-time employees (31 December 2010) 182 No. of all-level business units 7 No. of top-level business units 1 head office Share of foreign capital 0% Biggest shareholders collectively represent 100% Of this KD Group, d. d., Ljubljana 100%

Gross premiums written 2010 EUR70,106,104

Gross premiums written income by class 2010

Life 100%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 28

MERKUR zavarovalnica, d. d.

Address Dunajska cesta 58, SI – 1000 Ljubljana Website www.merkur-zav.si Email [email protected] Telephone (+386)-(0)1-30 05 450 Fax (+386)-(0)1-43 61 092

Chairman of the Supervisory Board Gerald Franz Kogler Chairman of the Board of Management Denis Stroligo t (+386)-(0)1-30 05 450 Members of the Board of Management Mojca Androjna, Andrej Osterc

Type of insurance company composite Form of organisation joint-stock company Date of registration 18 November 1992 No. of full-time employees (31 December 2010) 132 No. of all-level business units 2 No. of top-level business units 1 branch office Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this Merkur International Holding AG, Graz 100%

Gross premiums written 2010 EUR47,359,015

Gross premiums written income by class 2010

Other 0.5% Accident 11.1%

Property 3.4%

Life 85.0%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 29

NLB Vita, življenjska zavarovalnica d. d. Ljubljana

Address Trg republike 3, SI – 1520 Ljubljana Website www.nlbvita.si Email [email protected] Telephone (+386)-(0)1-476 58 00 Fax (+386)-(0)1-476 58 18

Chairman of the Supervisory Board Johan Daemen Chairwoman of the Board of Management Barbara Smolnikar t (+386)-(0)1-476 58 00 Member of the Board of Management Irena Prelog

Type of insurance company life and accident Form of organisation joint-stock company Date of registration 4 June 2003 No. of full-time employees (31 December 2010) 35 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital 50% Biggest shareholders collectively represent 100% Of this KBC Insurance NV, Leuven, Belgija 50% Nova Ljubljanska banka, d. d., Ljubljana 50%

Gross premiums written 2010 EUR32,249,946

Gross premiums written income by class 2010

Accident 5.4%

Life 94.6%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 30

Pozavarovalnica Sava, d. d.

Address Dunajska cesta 56, SI – 1000 Ljubljana Website www.sava-re.si Email [email protected] Telephone (+386)-(0)1-47 50 200 Fax (+386)-(0)1-47 50 264

Chairman of the Supervisory Board Branko Tomažič Chairman of the Board of Management Zvonko Ivanušič t (+386)-(0)1-47 50 200 Members of the Board of Management Srečko Čebron, Jošt Dolničar, Mateja Treven (since 3. 2. 2011)

Type of insurance company reinsurance Form of organisation joint-stock company Date of registration 28 December 1990 No. of full-time employees (31 December 2010) 68 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital (17 June 2011) 3.52% Biggest shareholders collectively represent (17 June 2011) 46.41% Of this Slovenska odškodninska družba, d. d., Ljubljana 25.00% Abanka, d. d., Ljubljana 7.00% Poteza naložbe, d. o. o., Ljubljana 5.00% Pišljar Marjan 4.75% Nova KB Maribor, d. d., Maribor 4.66%

Gross reinsurance premiums written 2010 EUR142,861,784

Gross reinsurance premiums written income by class 2010

Motor liability 15.9%

Other liability 2.5%

Other 3.6%

Accident 6.7% Property 54.1%

Motor casco 14.8%

Transport 2.4%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 31

Pozavarovalnica Triglav RE, d. d.

Address Miklošičeva cesta 19, SI – 1000 LJUBLJANA Email [email protected] Telephone (+386)-(0)1-47 47 900 Fax (+386)-(0)1-43 31 419

Chairman of the Supervisory Board Andrej Slapar Chairman of the Board of Management Gojko Kavčič t (+386)-(0)1-47 47 901 Members of the Board of Management Gregor Stražar, Tomaž Rotar

Type of insurance company reinsurance Form of organisation joint-stock company Date of registration 31 December 1998 No. of full-time employees (31 December 2010) 38 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital 0% Biggest shareholders collectively represent 100% Of this Zavarovalnica Triglav, d. d., Ljubljana 87.00% Nova Ljubljanska banka, d. d., Ljubljana 5.00% Maksima Holding, d. d., Ljubljana 2.00% Petrol, d. d., Ljubljana 2.00% Sava, d. d., Kranj 2.00% FMR, d. d., Idrija 1.33% Helios, d. d., Domžale 0.67%

Gross reinsurance premiums written 2010 EUR120,167,241

Gross reinsurance premiums written income by class 2010

Motor liability 10.1%

Other liability 2.2% Credit 2.0% Miscellaneous financial loss 1.6%

Other 5.4%

Accident 2.8% Property 59.9%

Motor casco 12.9%

Transport 3.1%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 32

SID – Prva kreditna zavarovalnica d. d., Ljubljana

Address Davčna ulica 1, SI – 1000 Ljubljana Website www.sid-pkz.si Email [email protected] Telephone (+386)-(0)1-200 58 00, 200 58 10 Fax (+386)-(0)1-425 84 45

Chairman of the Supervisory Board Jožef Bradeško Chairman of the Board of Management Ladislav Artnik t (+386)-(0)1-200 58 00 Member of the Board of Management Rasto Hartman

Type of insurance company credits/export and domestic credits Form of organisation joint-stock company Date of registration 31 December 2004 No. of full-time employees (31 December 2010) 53 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital 0% Biggest shareholders collectively represent 100% Of this SID – Slovenska izvozna in razvojna banka, d. d., Ljubljana (SID banka) 100%

Gross premiums written 2010 EUR19,878,495

Gross premiums written income by class 2010

Trade credit (international and domestic) 100%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 33

Sklad obrtnikov in podjetnikov

Address Vošnjakova ulica 6, SI – 1000 Ljubljana Website www.sop.si Email [email protected] Telephone (+386)-(0)1-300 36 11 Fax (+386)-(0)1-431 83 03

Chairman of the Supervisory Board Jaka Vadnjal Chairman of the Board of Management Bojan Jean t (+386)-(0)1-300 36 11 Member of the Board of Management Andrej Sajovic

Type of insurance company old-age pension Form of organisation fund Date of registration 23 August 1956 No. of full-time employees (31 December 2010) 26 No. of all-level business units 1 No. of top-level business units 1 head office Share of foreign capital 0% Biggest shareholders collectively represent not a joint-stock company

Gross premiums written 2010 EUR6,645,688

Gross premiums written income by class 2010

Pensions 100%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 34

TRIGLAV, Zdravstvena zavarovalnica, d. d.

Address Pristaniška ulica 10, SI – 6000 Koper/Capodistria Website www.zdravstvena.net Email [email protected] Telephone (+386)-(0)5-66 22 000 Fax (+386)-(0)5-66 22 002

Chairman of the Supervisory Board Boštjan Vovk Chairwoman of the Board of Management Meta Berk Skok t (+386)-(0)5-66 22 000 Member of the Board of Management Simon Vidmar

Type of insurance company voluntary health insurance Form of organisation joint-stock company Date of registration 18 November 2002 No. of full-time employees (31 December 2010) 78 No. of all-level business units 14 No. of top-level business units 2 (central office in Koper, central office in Ljubljana) Share of foreign capital 0% Biggest shareholders collectively represent 99.96% Of this Zavarovalnica Triglav, d. d., Ljubljana 99.51% Merkur, d. d., Naklo 0.21% SCT, d. d., Ljubljana 0.15% Energoplan, d. d., Ljubljana 0.05% Futura FMLY, d. o. o., Ljubljana 0.04%

Gross premiums written 2010 EUR72,660,503

Gross premiums written income by class 2010

Voluntary health 100%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 35

VICTORIA-VOLKSBANKEN zavarovalniška delniška družba, podružnica za Slovenijo

Address Šlandrova ulica 4, SI – 1231 Ljubljana-Črnuče Website www.victoria-volksbanken.si Email [email protected] Telephone (+386)-(0)1-600 58 00 Fax (+386)-(0)1-600 58 06

Manager of the branch Kurt Kalla t (+386)-(0)1-600 58 01

Type of insurance company composite Form of organisation branch of EU company Date of registration 25 May 2005 No. of full-time employees (31 December 2010) 6 No. of all-level business units 1 No. of top-level business units 1 head office of the branch Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this ERGO Austria International AG 74.63% Österreichische Volksbanken AG, Dunaj, Avstrija 25.37%

Gross premiums written 2010 EUR2,901,544

Gross premiums written income by class 2010

Accident 6.6% Property 4.3%

Life 89.1%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 36

VZAJEMNA zdravstvena zavarovalnica, d. v. z.

Address Vošnjakova ulica 2, SI – 1000 Ljubljana Website www.vzajemna.si Email [email protected] Telephone (+386)-(0)1-47 18 700 Fax (+386)-(0)1-47 18 850

Chairman of the Supervisory Board Mirko Miklavčič Chairwoman of the Board of Management Marija Milojka Kolar Celarc t (+386)-(0)1-47 18 702 Members of the Board of Management Katja Jelerčič, Ivan Gracar

Type of insurance company voluntary health insurance Form of organisation mutual Date of registration 1 November 1999 No. of full-time employees (31 December 2010) 292 No. of all-level business units 47 No. of top-level business units head office + 9 business units Share of foreign capital 0% Biggest shareholders collectively represent not a joint-stock company

Gross premiums written 2010 EUR240,262,920

Gross premiums written income by class 2010

Voluntary health 99.7% Accident 0.3%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 37

Wiener Städtische zavarovalnica, Podružnica v Ljubljani

Address Masarykova cesta 14, SI – 1000 Ljubljana Website www.wienerstaedtische.si Email [email protected] Telephone (+386)-(0)1-300 17 00 Fax (+386)-(0)1-300 17 09

Directors of the branch: Tomo Mrđen t (+386)-(0)1-300 17 00 Thomas Schmidtmeier

Type of insurance company composite Form of organisation branch of EU company Date of registration 24 August 2004 No. of full-time employees (31 December 2010) 22 No. of all-level business units 2 No. of top-level business units 1 head office of the branch Share of foreign capital 100% Biggest shareholders collectively represent 100% Of this Wiener Städtische Versicherung AG Vienna Insurance Group, Dunaj 100%

Gross premiums written 2010 EUR19,352,369

Gross premiums written income by class 2010

Property 16.8%

Life 74.5%

Other liability 6.4%

Miscellaneous financial loss 2.1% Other 0.2%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 38

Zavarovalnica MARIBOR, d. d.

Address Cankarjeva ulica 3, SI – 2507 Maribor Website www.ZavarovalnicaMaribor.si Email [email protected] Telephone (+386)-(0)2-23 32 100 Fax (+386)-(0)2-23 32 530

Chairman of the Supervisory Board Matjaž Kovačič Chairman of the Board of Management Drago Cotar t (+386)-(0)2-23 32 210 Members of the Board of Management David Kastelic, Marko Planinšec, Srečko Čarni (workers’ director)

Type of insurance company composite Form of organisation joint-stock company Date of registration 26 December 1990 No. of full-time employees (31 December 2010) 874 No. of all-level business units 267 No. of top-level business units 10 representative offices Share of foreign capital 0% Biggest shareholders collectively represent 99.35% Of this Nova KB Maribor, d. d., Maribor 49.96% Pozavarovalnica Sava, d. d., Ljubljana 45.79% Probanka, d. d., Maribor 3.07% Perutnina Ptuj, d. d., Ptuj 0.53%

Gross premiums written 2010 EUR259,598,666

Gross premiums written income by class 2010

Other 3.3% Accident 7.2%

Life 27.5% Motor casco 20.9%

Other liability 2.5%

Property 14.9%

Motor liability 23.6%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 39

Zavarovalnica TILIA, d. d.

Address Seidlova cesta 5, SI – 8000 Novo mesto Website www.zav-tilia.si Email [email protected] Telephone (+386 7) 39 17 200 Fax (+386 7) 39 17 310

Chairman of the Supervisory Board Zvonko Ivanušič Chairman of the Board of Management Andrej Kavšek t (+386 7) 39 17 201 Member of the Board of Management Tadej Avsec

Type of insurance company composite Form of organisation joint-stock company Date of registration 27 December 1990 No. of full-time employees (31 December 2010) 387 No. of all-level business units 39 No. of top-level business units 13 representative offices Share of foreign capital 0% Biggest shareholders collectively represent 100% Of this Pozavarovalnica Sava, d. d., Ljubljana 99.711% Small shareholders 0.289%

Gross premiums written 2010 EUR73,784,991

Gross premiums written income by class 2010

Other 3.5% Accident 11.3%

Life 13.8%

Other liability 3.4%

Motor casco 24.6%

Motor liability 29.4%

Property 13.9%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 40

Zavarovalnica TRIGLAV, d. d.

Address Miklošičeva ulica 19, SI - 1000 LJUBLJANA Website www.triglav.si Telephone (+386)-(0)1-47 47 200 h.c. Fax (+386)-(0)1-43 26 302

Chairman of the Supervisory Board Borut Jamnik Chairman of the Board of Management Matjaž Rakovec t (+386)-(0)1-47 47 500 Members of the Board of Management Andrej Slapar, Igor Stebernak, Vladimir Mišo Čeplak (workers’ director)

Type of insurance company composite Form of organisation joint-stock company Date of registration 28 December 1990 No. of full-time employees (31 December 2010) 2.441 No. of all-level business units 148 No. of top-level business units 12 regional offices Share of foreign capital 0% Biggest shareholders collectively represent 68.91% Of this ZPIZ, Ljubljana 34.47% Slovenska odškodninska družba, d. d., Ljubljana 28.06% NLB, d. d., Ljubljana 3.06% CLAYCROFT Limited, Nicozia, Ciper 1.69% NFD 1 Delniški investicijski sklad, d. d., Ljubljana 1.63%

Gross premiums written 2010 EUR719,864,103

Gross premiums written income by class 2010

Other 2.7% Accident 6.0%

Motor casco 17.3% Life 28.8%

Credit 3.0% Property 18.5% Other liability 4.1%

Motor liability 19.6% Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 41 According to preliminary data, in 2010 industrial companies in Slovenia produced and sold approximately EUR 17.9 billion worth of industrial products and services. Source: www.stat.si Statistical Insurance Bulletin 2011 43

IV. Employees in insurance companies in 2010

The changed economic conditions were reflected in 2010 in the number of employees and in the indicators that serve to monitor investment in the growth and development of insurance industry employees. In 2010 the number of employees was down 2.8% on the previous year. Insurance companies employed a total of 6,128 staff in 2010, of whom 2,578 were men (42.1%) and 3,550 women (57.9%).

The educational structure is improving. The proportion of employees in the insurance sector who hold at least level VII education increased in 2010 by 2.2 percentage points over the previous year, and accounts for 34.4% of all employees, while 2-year college education or higher is held by 47% of employees, a rise of 2.1 percentage points over the previous year. The proportion of employees with level V education or less has fallen, and amounted to 53% in 2010. The number of staff with MSc degrees rose slightly, and accounts for 2.5% of all employees, while the number of staff with doctorates remained the same (13).

There has been a drop in the proportion of employees working in sales, and a rise in the proportion working in other departments. In 2010 a total of 2,282 employees were involved in selling insurance, representing 37.2% of all insurance company staff. The number of permanent employees showed no change over the previous year, and accounts for 89.4% of all employees, while the number of fixed-term employees fell by 21.5% relative to 2009, and accounts for just 10.6% of all insurance employees. Statistical Insurance Bulletin 2011 44

In 2010 each insurance company worker attended on average 31.58 hours of education courses, while the average expenditure on education per employee amounted to EUR 453, a rise of 7.8% over the previous year. In total, insurance companies or- ganised 198,055 lesson hours of education courses. The biggest share of that, 60.7%, still involves internal training, which the insurance companies themselves provide with internal course leaders. There was also an increase in the number of internal course leaders who provide internal transfer of knowledge within insurance companies. In 2010 there were a total of 328 such leaders, representing 5.23% of the average number of employees.

In total, insurance companies allocated EUR 2,837,999 for education and training of their employees, which is 6.6% more than in 2009. Direct costs of education accounted for the use of 79.6% of the funds allocated for education. Investment in functional training accounts for 83.3% of all funds invested in education, while spending on formal employee education accounts for 16.7%. In 2010 formal education programmes, for which the insurance companies pay tuition fees or support participants in some other way, involved 446 employees, representing 7.11% of all employees. In 2010 courses were attended at least once by 84.47% of staff. Investment in education as a proportion of gross premiums written increased relative to 2009, and amounted to 0.14%.

Compared to 2009 the proportion of sick leave in 2010 fell by 4.4%. In 2010 insurance companies lost 4.34% of their available working hours as a result of sick leave. The costs of 1.69% of the hours were met by the Health Insurance Institute, with the remaining lost working hours (2.65%) being covered by the insurance companies themselves.

A total of 611 persons took employment in insurance companies in 2010, while 786 left their jobs in this sector. The gross employee turnover rate thus stands at 2.28, and net employee turnover at –2.79. Statistical Insurance Bulletin 2011 45

Employees in insurance companies 2008–2010

Year 2008 2009 2010 Growth Growth Growth (I 08/07) (I 09/08) (I 10/09)

General data

Number of employees in insurance companies (All) 6,331 6,306 6,128 104.4 99.6 97.2 • Male 2,655 2,667 2,578 103.3 100.5 96.7 • Female 3,676 3,639 3,550 105.2 99.0 97.6 Average number of employees in calendar year 6,110 6,334 6,271 101.4 103.7 99.0 Number of employees by level of formal education • Primary or lower (I–IV) 511 451 387 97.0 88.3 85.8 • Secondary (V) 3,134 3,026 2,862 103.8 96.6 94.6 • Further (VI) 796 798 772 102.1 100.3 96.7 • Higher (VII) 1,749 1,875 1,943 109.1 107.2 103.6 • Master's (VIII) 128 143 151 104.9 111.7 105.6 • Doctorate (IX) 13 13 13 108.3 100.0 100.0 Number of employees by business function • Sales employees 2,832 2,813 2,282 105.9 99.3 81.1 • Other employees 3,499 3,493 3,846 103.2 99.8 110.1 Number of employees by type of employment contract • Permanent 5,422 5,479 5,479 102.8 101.1 100.0 • Fixed-term 909 827 649 115.2 91.0 78.5

Data on education of employees in insurance companies

Number of hours of functional employee education in calendar year 211,256 211,805 198,055 89.1 100.3 93.5 Number of employees participating in formal education programmes paid for or otherwise supported by insurance companies in calendar year 434 479 446 111.3 110.4 93.1 Number of employees participating in education at least once in calendar year 5,302 5,258 5,297 92.9 99.2 100.7 Number of in-house lecturers 290 320 328 92.7 110.3 102.5 Cost of employee education (EUR) 3,085,229 2,661,457 2,837,999 122.8 86.3 106.6

Important indicators of investment in employee education

Average number of hours of formal education per employee * 34.58 33.44 31.58 87.9 96.7 94.4 Proportion of employees participating in formal education programmes (%) * 7.10 7.56 7.11 109.7 106.5 94.0 Proportion of employees participating in education at least once in calendar year (%) * 86.78 83.01 84.47 91.6 95.7 101.8 Number of in-house lecturers per 100 employees * 4.75 5.05 5.23 91.5 106.4 103.5 Total education cost as a proportion of gross premiums written (%) 0.15 0.13 0.14 115.2 86.7 107.7 Average cost of education per employee in calendar year (EUR)* 505 420 453 121.1 83.2 107.8

Absenteeism

Share of lost hours owing to sickness, injury etc. (charged to the account of employer) 2.48 2.81 2.65 97.3 113.2 94.4 Share of lost hours owing to sickness, injury etc. (charged to the account of ZZZS) 1.90 1.73 1.69 99.5 90.9 97.9 Share of lost hours owing to sickness, injury etc. (TOTAL) 4.38 4.54 4.34 98.2 103.7 95.6

* Indicators calculated per average number of employees in the calendar year. Source: SZZ (form ZAP-1) A total of 68% of Slovenian households had access to the internet in the first quarter of 2010. Source: www.stat.si Statistical Insurance Bulletin 2011 47

V. Insurance and reinsurance activities in 2010

The members of the Slovenian Insurance Association have been grappling successfully with the economic crisis, the negative impacts of which peaked in 2009. A reduced, but still positive growth in total gross premiums written was noted in 2010, and this is expected to be the case for the next few years. The other feature of current devel- opments in the insurance sector is a negative growth in property insurance premiums. Since December 2009 it has fallen by five percentage points. Consequently there has been a reduction in the share of property insurance in total premiums. With the decline in the growth of collected property insurance premiums, the accelerated growth in the collected life insurance premiums and a reallocation of the structural shares of both these main insurance areas in favour of life insurance, we are perhaps seeing the first signs of mature European insurance markets. Insurance paid out from all types of cover increased less than premiums, so the claims ratio (59.34%) for 2010 was slightly better than the previous year.

A slower growth in gross premiums written has also been experienced by the reinsurance sector, which did indeed lag behind the insurance sector’s growth in 2010. The biggest reinsurance company did in fact record a drop in its collected premiums; its market share fell by two percentage points. Fortunately in 2010 the total amount of claims paid out by the two reinsurance companies fell significantly (index of 81.44), for which reason the claims ratio for the reinsurance sector improved to 53.20%

Below we present graphically and in text the details of insurance and reinsurance business. Some data for the same phenomenon or type of insurance may differ from each other, since they originate from two different records, various statistical forms or have different reporting dates. Meanwhile all the aggregate data for the insurance sector for 2010 include data from all 19 SZZ insurance company members, in other words including data from the Wiener Städtische subsidiary, which last year was not included in the statistical aggregates of individual types of insurance. Equally, the coverage of reinsurance data is complete. Where premiums and claim payments are mentioned, the gross values are given. Statistical Insurance Bulletin 2011 48

Gross insurance and reinsurance premiums written, annual growth and shares in GDP*

Total premiums amounts in EUR 000 Year Insurance Growth** Share in GDP (%) Reinsurance Growth** Share in GDP (%)* 2006 1,725,304 111.4 5.67* 180,619 111.9 0.59* 2007 1,893,980 109.8 5.49* 206,165 114.1 0.60* 2008 2,018,960 106.6 5.44 241,738 117.3 0.65 2009 2,072,923 102.7 5.94 261,109 108.0 0.75 2010 2,094,342 101.0 5.81 263,029 100.7 0.73 Life insurance premiums amounts in EUR 000 Year Insurance Growth**Share in GDP (%) Reinsurance Growth** Share in GDP (%)* * The shares of 2006 540,655 116.3 1.78* 642 63.8 0.00* premiums in GDP are 2007 609,266 112.71.77*704 109.70.00* calculated in terms of the SURS's estimate 2008 642,653 105.5 1.73 724 102.8 0.00 of the size of GDP at current prices for 2010. 2009 630,089 98.0 1.81 643 88.8 0.00 For 2006 and 2007 2010 656,013 104.1 1.82 794 123.5 0.00 the corrected data for GDP is used. Non-life insurance premiums amounts in EUR 000 ** Premium growth Year Insurance Growth**Share in GDP (%) Reinsurance Growth** Share in GDP (%)* index (excluding the 2006 1,184,649 109.3 3.89* 179,977 112.2 0.59* inflation rate). See the note below the table 2007 1,284,714 108.4 3.73* 205,461 114.2 0.60* on page 5. 2008 1,376,307 107.1 3.71 241,014 117.3 0.65 0.00 – value not zero 2009 1,442,834 104.8 4.13 260,466 108.1 0.75 but less than 1/100% 2010 1,437,454 99.6 3.99 262,235 100.7 0.73 Sources: SZZ, SURS

Gross insurance and reinsurance claims paid and their annual growth*

Total claims amounts in EUR 000 Year Insurance Growth** Reinsurance Growth** 2006 949,076 108.5 101,767 129.4 2007 1,023,300 107.8 115,181 113.2 2008 1,204,208 117.7 200,375 174.0 2009 1,240,001 103.0 171,828 85.8 2010 1,242,833 100.2 139,930 81.4 Life insurance claims amounts in EUR 000 Year Insurance Growth**Reinsurance Growth** 2006 149,088 109.3 252 113.5 2007 161,828 108.5 302 119.8 2008 177,589 109.7 162 53.6 2009 188,496 106.1 137 84.6 2010 245,624 130.3 179 130.7 Non-life insurance claims amounts in EUR 000 Year Insurance Growth** Reinsurance Growth** 2006 799,988 108.3 101,515 129.4

2007 861,472 107.7 114,879 113.2 * Claims without 2008 1,026,619 119.2 200,213 174.3 assessment costs. ** Claims growth 2009 1,051,505 102.4 171,691 85.8 index (excluding the inflation rate). 2010 997,209 94.8 139,751 81.4 Source: SZZ Statistical Insurance Bulletin 2011 49

1. Insurance activity

Insurance business in Slovenia is performed by 20 insurance companies, and all of them, excluding Prva osebna zavarovalnica d. d., Ljubljana (First Personal Insurance Company), are members of the SZZ. Of the 19 companies that are SZZ members and are involved in direct business, two (KAD and SOP) do not operate entirely under the Insur- ance Act, so they are called “other members” of the SZZ.

The collected statistical data on insurance activity show that insurance companies and the other members were relatively successful in weathering the crisis year of 2010. In total they collected EUR 2.094 billion in gross premiums written, or just under a percentage point more than the previous year. It is especially encouraging that insured persons have regained their confidence in life insurance, which accounted for EUR 656 million in collected premiums. Gross life insurance premiums written in 2010 were just four percent higher than in the previous year. The growth rate for premiums of all property insurance, which accounted for EUR 1.438 billion at the end of the year, or over two thirds of the entire portfolio, was negative. This slowed down the growth of the whole sector.

Regardless of the weak growth in business, the insurance density level increased relative to 2009. In 2010 each inhabitant of Slovenia spent EUR 1,022 on insurance, compared to EUR 1,015 in 2009. The rate of insurance penetration (5.81%) declined relative to 2009, with the one-year growth in GDP outstripping the growth in insurance business. Owing to the higher growth in life insurance premiums, the share of this part of the insurance portfolio as a proportion of GDP increased by one hundredth of a percentage point to stand at 1.82% in 2010. Penetration of property insurance fell, however, from 4.13% in 2009 to 3.99% in 2010.

Major differences in the growth rate of premiums for specific types of insurance in property insurance are one of the features of the last two crisis years. In the final pre-crisis year (2008) and earlier, there was positive growth in all types of insurance. A revival of economic and trading flows in 2010 has been reflected in the relatively high rate of growth in insurance for goods in transit (index of 107.75), which recorded a negative growth in the previous year (index of 86.03). The highest growth rates were recorded in insurance for assistance to tourists (index of 126.43) and in credit insurance (index of 120.21). Property insurance for the most part showed negative growth.

The growth rate for insurance claims paid out from the entire portfolio was positive in 2010, but less than the premiums growth rate. Insurance companies paid out a total of EUR 1.243 billion gross in claims. Among the various types of insurance there are considerable differences. In the life insurance sector, six times more was paid out in claims in 2010 than in the previous year, so the claims ratio for life insurance also deteriorated to 37.44%. Negative growth in the value of claims paid out was recorded by the property insurance sector. Yet the amount of claims increased most in aircraft insurance, credit insurance and tourist assistance insurance. In most types of insurance the insurance companies paid out less claims than in 2009, so the growth rate of property claims was negative. The concentration of the insurance market is less each year, since the market share of the biggest insurers is falling. Among the biggest operators in the market we can rank only four that hold a market share of more than 10 percent. These are Triglav (34.37%), Adriatic Slovenica (12.47%), Maribor (12.40%) and Vzajemna (11.47%). In 2010 their combined market share accounted for just under 71% of the entire insurance market, while in 2005 it was almost 80%. While in 2005 there were four insurance companies and other members with less than 1 percent of the market share, there were seven such companies in 2010. If the number of insurance companies in the market does Statistical Insurance Bulletin 2011 50

not increase, there are expectations that in the next few years the group of smallest companies will no longer include two insurance companies that are just a few hundredths of a percent short of holding a 1 percent market share. The group with a market share of between 1 and 8 percent is the biggest, with eight insurance companies.

In 2010 there were nine insurance companies operating in Slovenia with foreign equity amounting to 50 percent or more. These are Generali, Merkur, GRAWE, NLB Vita, Wiener Städtische, ERGO, Allianz, Victoria-Volksbanken and ARAG. The foreign- owned insurance companies are strengthening their market share. In 2010 this amounted to 10.78%, with a 20.12% share of life insurance and 6.53% share of property insurance. Among them the insurance company Generali, one of the more dynamic operators in the market, has climbed highest and now occupies sixth place, with a market share of 3.83%. Together with the insurers Triglav and Maribor, it is a member of the American Chamber of Commerce (AmCham), in which more than a hundred different companies from Slovenia are involved.

Gross and net of reinsurance premiums written and claims paid 2010 amounts in EUR 000

Gross Net of reinsurance** Insurance class Premiums Claims*Premiums Claims* Amount Share (%) Amount Share (%) Amount Amount Total 2,094,342 100.00 1,242,833 100.00 1,884,951 1,117,518 Life 656,013 31.32 245,624 19.76 646,469 246,014 – of this PIP in terms of ZPIZ-1 172,682 8.25 30,492 2.45 172,682 36 Non-life total 1,438,329 68.68 997,209 80.24 1,238,482 871,503 Accident 107,012 5.11 39,963 3.22 95,420 35,711 Health 409,665 19.56 365,660 29.42 408,228 365,412 Land motor vehicles casco 254,216 12.14 195,454 15.73 216,360 168,461 Railway rolling stock casco 262 0.01 872 0.07 (364) 872 Aircraft casco 1,615 0.08 1,171 0.09 708 394 Ships (sea, lake and river vessels) casco 1,733 0.08 1,425 0.11 1,506 1,267 Goods in transit 7,559 0.36 1,988 0.16 5,770 1,600 Fire and natural forces 94,701 4.52 51,971 4.18 53,800 28,911 Other damage to property 136,789 6.53 83,247 6.70 98,333 60,200 Motor vehicle liability 302,868 14.46 169,049 13.60 265,811 147,851 Aircraft liability 1,198 0.06 637 0.05 39 2 Liability for ships (sea, lake and river vessels) 1,182 0.06 282 0.02 1,049 267 Other liability (general, etc.) 50,044 2.39 26,624 2.14 39,853 23,813 Credit 46,157 2.20 45,900 3.69 31,005 26,605 Suretyship 935 0.04 989 0.08 520 701 Miscellaneous financial loss 5,995 0.29 4,919 0.40 3,106 2,508 Legal expenses 3,897 0.19 234 0.02 2,743 234 Tourist assistance 12,501 0.60 6,824 0.55 10,177 5,706

* Claims without assessment costs.

** The amount of NON-LIFE TOTAL is not equal to sum of the particular insurance classes because one responder stated only the totals.

Note: The ﬁ gures for gross premiums written and claims paid do not include transferable items. Pension insurance under ZPIZ-1 is included in life insurance but is shown separately on its own line.

Source: SZZ Statistical Insurance Bulletin 2011 51

Classes of insurance business by gross premium written 2010

Railway rolling stock casco Suretyship

Liability for ships (sea, lake and river vessels) Aircraft liability Aircraft casco

Ships (sea, lake and river vessels) casco Legal expenses Miscellaneous financial loss Goods in transit Tourist assistance Credit

Other liability (general, etc.) Fire and natural forces Accident Other damage to property Land motor vehicles casco Motor vehicle liability Health Life

Source: SZZ 0 50 100 150 200 250 300 350 400 450 500 550 600 650 EUR m

Development of insurance business (gross premiums written and gross claims paid from insurance companies and other SZZ members)

EUR m Premiums

Claims 2000

1500

1000

500

0 20062000066 20072007 20082008 20092009 20102010 year Source: SZZ

Annual expenditure on insurance per capita

Premium Population Expenditure Growth Year (EUR 000) (as at 30 June) per capita (EUR) (index)

2006 1,725,304 2,008,516 859 111.0 2007 1,893,980 2,019,406 938 109.2 2008 2,018,960 2,039,399 990 105.6 2009 2,072,923 2,042,335 1,015 102.5 2010 2,094,343 2,049,261 1,022 100.7

Sources: SZZ, SURS Statistical Insurance Bulletin 2011 52

Annual growth rates of gross premiums written and claims paid, by insurance class amounts in EUR 000

Claims ratio Gross premiums written Gross claims paid* (%) Insurance class Growth Growth 201020092010 2009 2010 2009 (I 10/09) (I 10/09)

Total 2,094,342 2,072,922 101.0 1,242,833 1,240,002 100.2 59.3 59.8 Non-life total 1,438,329 1,442,833 99.7 997,209 1,051,507 94.8 69.3 72.9 Accident 107,012 110,281 97.0 39,963 42,096 94.9 37.3 38.2 Health 409,665 414,679 98.8 365,660 341,489 107.1 89.3 82.4 Land motor vehicles casco 254,216 242,419 104.9 195,454 215,476 90.7 76.9 88.9 Railway rolling stock casco 262 2,369 11.1 872 972 89.7 332.8 41.0 Aircraft casco 1,615 1,657 97.5 1,171 302 387.7 72.5 18.2 Ships (sea, lake and river vessels) casco 1,733 1,960 88.4 1,425 2,316 61.5 82.2 118.2 Goods in transit 7,559 7,016 107.7 1,988 3,396 58.5 26.3 48.4 Fire and natural forces 94,701 89,115 106.3 51,971 61,784 84.1 54.9 69.3 Other damage to property 136,789 139,228 98.2 83,247 119,584 69.6 60.9 85.9 Motor vehicle liability 302,868 322,983 93.8 169,049 184,559 91.6 55.8 57.1 Aircraft liability 1,198 1,511 79.3 637 303 210.2 53.2 20.1 Liability for ships (sea, lake and river vessels) 1,182 1,151 102.7 282 238 118.5 23.9 20.7 Other liability (general, etc.) 50,044 49,327 101.5 26,624 32,496 81.9 53.2 65.9 Credit 46,157 38,397 120.2 45,900 34,701 132.3 99.4 90.4 Suretyship 935 1,077 86.8 989 1,459 67.8 105.8 135.5 Miscellaneous financial loss 5,995 6,064 98.9 4,919 4,763 103.3 82.1 78.5 Legal expenses 3,897 3,712 105.0 234 201 116.4 6.0 5.4 Tourist assistance 12,501 9,887 126.4 6,824 5,372 127.0 54.6 54.3 Life total 656,013 630,089 104.1 245,624 188,495 130.3 37.4 29.9 Life insurance 228,413 231,913 98.5 169,844 141,158 120.3 74.4 60.9 Insurance for paying out at marriage and birth 589 651 90.5 674 407 165.6 114.4 62.5 Life assurance related to investment fund units 404,727 376,757 107.4 71,254 44,408 160.5 17.6 11.8 Tontine – – – – – – – – Capital redemption insurance 22,284 20,768 107.3 3,852 2,522 152.7 17.3 12.1 Insurance of income loss caused by accident or illness under ZZavar – – – – – – – – Pension insurance under ZPIZ-1** 172,682 162,858 106.0 30,492 20,212 150.9 17.7 12.4 Additional health insurance under ZZavar (Art. 3, Ch. 7)*** 399,233 403,709 98.9 363,091 338,941 107.1 90.9 84.0 Additional insurance**** 49,754 49,548 100.4 21,671 22,235 97.5 43.6 44.9

* Claims without assessment costs. ** Insurance is already included in appropriate type of life insurance. *** Insurance is already included in health insurance. **** Insurance is already included in life insurance.

Source: SZZ Statistical Insurance Bulletin 2011 53

1.1 Life insurance

In 2010, life insurance was marketed by 14 insurance companies and other SZZ members. Statistical data on life insurance for 2010 show that the insurance sector has extricated itself from the firm embrace of the economic crisis. The amount of premiums for this kind of insurance has never before been higher than EUR 656 million, and growth was only 4 percent, which is significantly less than in the years before the crisis. This good result was spurred by the high rate of growth in insurance tied to investment fund units and insurance with capitalisation of payments. All other forms of life insurance show negative growth of collected gross written premiums. Two thirds of all life premiums were collected through insurance tied to investment fund units, and one third through the traditional forms of life insurance. The structural share of life insurance in the entire portfolio has had a resurgence, and now stands at 31.3%. A fifth of all life insurance premiums in 2010 were collected by insurance companies with foreign equity.

Statistical data on life insurance in 2010 amounts in EUR

Insurance Indemnities

Life insurance type Number of*** Gross Number Insured premiums Claims Policies of claims persons written paid*

1 Total (2 + 11 + 14 + 19 + 20 + 23) … … 656,013,340 130,764 245,624,195 2 Life insurance (Total 3 + ... + 9)** … … 237,446,940 90,451 169,207,297 3 – death … … 23,323,115 2,129 3,743,275 4 – endowment … … 1,437,184 219 404,755 5 – death and endowment – mixed insurance … … 150,860,567 44,195 126,340,738 6 – annuity (except data under 7) … … 8,686,248 1,660 7,845,030 7 – annuity – payments under pensions schemes in terms of ZPIZ-1 … … 0 0 6,165 8 – refund of premium insurance … … 0 0 0 9 – all other life insurance … … 3,647,087 7,848 9,440,426 10 – additional insurance** … … 49,492,739 34,400 21,426,908 11 Insurance for paying out at marriage and birth … … 588,528 165 673,854 12 – insurance for paying out at marriage … … 588,528 165 673,854 13 – insurance for paying out at birth … … 0 0 0 14 Life insurance linked to investment fund units (Unit-linked) (15 + ... + 18) … … 395,693,875 38,982 71,854,877 15 – life insurance linked to investment fund units with guarantee … … 12,917,395 1,190 3,133,779 16 – life insurance linked to investment fund units without guarantee … … 220,808,834 30,370 41,932,232 17 – life insurance linked to cover of assurance units with guarantee … … 150,397,811 7,373 26,639,661 18 – life insurance linked to cover of assurance units without guarantee … … 11,569,835 49 149,205 19 Tontine … … 0 0 0 20 Capital redemption insurance (TOTAL 21 + 22) … … 22,283,997 1,166 3,888,167 21 – voluntary supplementary pension insurance in accordance with the ZPIZ-1 … … 22,283,997 1,166 3,888,167 22 – other capital redemption insurance … … 0 0 0 23 Insurance of income loss caused by accident or illness under ZZavar … … 0 0 0

* Claims without assessment costs. ** The numbers of policies and insured persons (first and second column) for additional insurance (raw 10) are not counted in raw 2 but other data from raw 10 is added in Total. *** Owing to changes in metodology of counting policies and insured persons data are not stated. Source: SZZ (data form ST-19) Statistical Insurance Bulletin 2011 54

The growth of life insurance claims paid out was for the first time quite high (30.31%), and as much as ten times the growth of premiums. The total amount of life insurance claims (EUR 246 million) equalled just over a third of premiums, so the claims ratio for life insurance deteriorated significantly (37.44).

Development of life insurance

Premiums EUR m Claims paid PIP under ZPIZ-1 600 PIC under ZPIZ-1 400

200

Source: SZZ 2006200066 2007 2008 20092009 20102010 year

Life insurance 2010 – breakdown by type of insurance

Capital redemption 3.4%

Other 0.1%

Unit-linked 60.3%

Classic 36.2%

Source: SZZ (data form ST-50) Statistical Insurance Bulletin 2011 55

Basic data on personal lines 2010 amounts in EUR 000

Gross premiums Claims Claims Share (%) Class of personal lines written paid ratio (%) in total GPW

Total 1,172,690 651,247 55.53 55.99 Health insurance 409,665 365,660 89.26 19.56 Life insurance 656,013 245,624 37.44 31.32 – of this pension insurance under ZPIZ-1 172,682 30,534 17.68 8.25 Accident insurance 107,012 39,963 37.34 5.11

Source: SZZ (data form ST-50)

Development of shares of life and non-life insurance in all insurance business

Shares of life and non-life insurance in all insurance business (%) Year All business Life Non-life 2006 100 31.34 68.66 2007 100 32.17 67.83 2008 100 31.83 68.17 2009 100 30.40 69.60 2010 100 31.32 68.68

Source: SZZ

Share of life and non-life insurance in all business 2010

Life 31.3%

Non-life 68.7%

Source: SZZ Statistical Insurance Bulletin 2011 56

1.1.1 Pension insurance

Awareness in the general public about the need for their own participation to ensure social security for the years after their retirement is increasing all the time. For this reason statistical data on voluntary pension insurance in the second and third pillar show growth for 2010, too. There are almost 600,000 persons, or 1.8% more than the previous year, involved in pension plans. Insured persons paid in almost EUR 290 million in premiums, or 4.1% more than in 2009. On average insured persons paid in EUR 483 for voluntary supplementary pension insurance.

Pension insurance 2010 (under the Pension and Disability Insurance Act – ZPIZ-1 and Insurance Act – ZZavar)

Additional pension insurance Pension insurance (as at 31 December 2009) – 2nd pillar (as at 31 December 2009) – 3rd pillar Providers of Insured Premiums Market Beneﬁ ts Insured Premiums Market Beneﬁ ts pension insurance persons share persons share (number) (EUR) (%) (EUR) (number) (EUR) (%) (EUR)

Total 579,304 285,063,027 100 30,376,990 39,523 4,921,318 100 14,632,017 Total for insurance companies and other SZZ members 327,655 172,681,808 60.6 24,066,187 39,523 4,921,318 100 14,632,017 Kapitalska družba (KAD)* 277,199 147,497,371 51.7 20,089,900 31,235 – – 11,882,095 Triglav 45,577 21,280,476 7.5 3,861,669 4,670 2,662,387 54.1 453,724 Generali 4,774 2,900,440 1.0 88,120 – – – – Adriatic Slovenica 105 1,003,521 0.4 26,498 3,000 875,591 17.8 1,249,511 Merkur – – – – 51 627,544 12.8 643,875 KD Življenje – – – – 235 186,289 3.8 205,804 Tilia – – – – 50 54,125 1.1 50,121 Wiener Städtische – – – – 282 515,382 10.5 146,887 Total for other providers of pension insurance 251,649 112,381,219 39.4 6,310,803 – – – – Pension companies (3) + Prva osebna zavarovalnica 238,021 104,901,930 36.8 6,096,547 – – – – Pension funds at banks 13,628 7,479,289 2.6 214,256 – – – –

* Data for the 2nd pillar includes funds established by the law (ZPIZ-1). Data for the 3rd pillar includes only the First Pension Fund in accordance with the appropriate Act. Sources: SZZ and providers of pension insurance Statistical Insurance Bulletin 2011 57

1.2 All other insurance (non-life or property)

The structural share of the large and diverse group of property or non-life insurance once again started falling in 2010 in favour of the increasing share of life insurance. The growth of total premiums for all 18 types of insurance in this group was indeed negative (index of 99.69). In absolute terms, property insurance premiums were EUR 1,438, just over 4.5 million euros less than in 2009. Health insurance accounted for the collection of the greatest amount of property premiums (EUR 410 million). This is followed at EUR 303 million by liability insurance for the use of motor vehicles, with third place taken by casco car insurance (EUR 254 million).

Since growth of claims was negative (index of 94.84) and much lower than the growth of premiums, the claims ratio for property insurance improved to 69.33%. Insurance companies that market this kind of insurance – 15 of them – paid out a total of EUR 997 million in claims on all types of property insurance. Over a third of this amount was paid out to persons holding health policies, with the same amount going to holders of car insurance.

Development of non-life insurance

PremiumsP EUR m ClaimsC 1500

1000

500

0 Source: SZZ 200620006 20072007 2008 2009 20102010 year

Non-life insurance 2010 – breakdown by insurance class

Liability 24.7%

Other 2.2% Credit 3.2%

Accident 7.4%

Health 28.5%

Property 16.1%

Casco 17.9% Source: SZZ Statistical Insurance Bulletin 2011 58

Basic data on compulsory insurance classes and types 2010 amounts in EUR

Gross premiums Growth Gross claims Insurance class written paid* Insurance type 20102009(I 10/09) 2010 2009 Total 303,551,152 323,933,403 93.7 167,087,282 181,449,531 Accident Compulsory accident insurance of public transport passengers 240,675 249,273 96.6 764 5,284 Motor vehicle liability insurance Automobile liability (MTPL) 297,124,509 317,378,287 93.6 165,390,454 180,216,757 Aircraft liability insurance Aircraft Liability 1,197,993 1,510,785 79.3 637,398 302,819 Ships (sea, lake and river vessels) liability insurance Maritime transport liability 1,181,786 1,150,864 102.7 281,996 238,145 Other liability insurance (general, etc.) Compulsory liability insurance for audit companies 386,375 442,864 87.2 16,098 48,097 Compulsory liability insurance for designers 1,195,118 1,273,559 93.8 96,659 163,373 Compulsory liability insurance for lawyers 1,003,749 872,460 115.0 373,143 275,396 Compulsory liability insurance for physicians 849,768 730,547 116.3 286,927 133,946 Compulsory insurance for notarial liability 74,792 77,535 96.5 – – Compulsory liability insurance for insurance agencies 266,348 222,248 119.8 – – Compulsory liability insurance for court executors 2,054 – – – 26,688 Compulsory liability insurance for mountain guides 302 720 – – – Compulsory liability insurance for geodesic companies 27,683 24,261 114.1 3,843 39,026 Compulsory liability insurance for certifying bodies for confirmation of conformity of building products ––– ––

* Claims without assessment costs Source: SZZ (data forms ST-1, 10, 11, 12, 13) Statistical Insurance Bulletin 2011 59

2. Reinsurance activity

Reinsurance business is provided by two reinsurers, the bigger and older Pozavarovalnica Sava and the smaller and younger Triglav RE. These two share the reinsurance market in a proportion of 54:46. In 2010 they collected EUR 263 million in reinsurance premiums, which is just under a percentage point more than in 2009. As with the biggest insurance company, the biggest reinsurance company is gradually losing market share. The amount of collected premiums at the Sava reinsurance company fell in 2010 to EUR 142 million, while Triglav RE managed to increase its premiums to EUR 120 million. Total growth of reinsurance activities in 2010 was therefore positive. Since in the crisis year of 2009 the growth rate of reinsurance premiums was eight times higher than a year later, this could mean that world economic trends in the reinsurance sector are reflected in a one-year statistical lag. The largest single part of reinsurance premiums was collected through insurance against fire and natural disaster (EUR 95 million), with the second largest part of premiums covering other damage insurance (EUR 55 million), while third place was taken by casco car insurance (EUR 37 million).

In 2010 reinsurance companies paid out just under EUR 140 million in claims, mainly related to fire and natural disaster insurance. The growth of claims paid out was distinctly negative (index of 81.44), so the claims ratio for the reinsurance sector improved to 53.20%.

Classes of reinsurance business by gross premiums written 2010

Legal expenses Health Tourist assistance

Liability for ships (sea, lake and river vessels) Railway rolling stock casco Suretyship Life Aircraft liability Aircraft casco Miscellaneous financial loss Credit

Ships (sea, lake and river vessels) casco

Other liability (general, etc.) Goods in transit Accident Motor vehicle liability Land motor vehicle casco Other damage to property Fire and natural forces

Source: SZZ 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 EUR m Statistical Insurance Bulletin 2011 60

Gross reinsurance premiums written and gross claims paid 2010

Premiums Claims* Insurance class in EUR Share (%) in EUR Share (%) Total 263,029,025 100.00 139,930,258 100.00 Non-life total 262,235,251 99.70 139,751,215 99.87 Accident 12,998,022 4.94 5,303,334 3.79 Health 237,954 0.09 221,621 0.16 Land motor vehicles casco 36,595,172 13.91 26,931,005 19.25 Railway rolling stock casco 679,775 0.26 0 0.00 Aircraft casco 2,175,586 0.83 943,652 0.67 Ships (sea, lake and river vessels) casco 3,589,293 1.36 2,201,022 1.57 Goods in transit 7,182,962 2.73 2,751,080 1.97 Fire and natural forces 94,634,183 35.98 39,613,046 28.31 Other damage to property 54,565,502 20.75 32,579,963 23.28 Motor vehicle liability 34,903,492 13.27 21,014,102 15.02 Aircraft liability 1,164,981 0.44 691,852 0.49 Liability for ships (sea, lake and river vessels) 462,194 0.18 78,567 0.06 Other liability (general, etc.) 6,133,471 2.33 2,417,008 1.73 Credit 3,152,108 1.20 1,846,586 1.32 Suretyship 694,110 0.26 236,322 0.17 Miscellaneous financial loss 2,609,730 0.99 2,614,090 1.87 Legal expenses 62,288 0.02 293 0.00 Tourist assistance 394,428 0.15 307,672 0.22 Life total 793,774 0.30 179,043 0.13 Life insurance 605,593 0.23 136,976 0.10 Insurance for paying out at marriage and birth – – – – Life assurance related to investment funds units 188,181 0.07 42,067 0.03 Tontine – – – – Capital redemption insurance – – – – Insurance of income loss caused by accident or illness under ZZavar – – – – Pension insurance under ZPIZ-1** – – – – Additional health insurance under ZZavar (Art. 3, Ch. 7)*** – – – – Additional insurance**** – – – –

Development of reinsurance business

Premiums EUR m Claims 250

200

150

100

0 Source: SZZ 2006006 20072007 20082008 20092009 20102010 year

Share of reinsurance premiums in insurance business 2010

Reinsurance 12.6%

Note: The active premium from abroad is also included in the share.

Source: SZZ Statistical Insurance Bulletin 2011 62

3. Nuclear Insurance and Reinsurance Pool

The Nuclear Pool has functioned as a commercial interest association (GIZ) since 1994. Throughout the entire period of its existence, it has brought together the capacities of Slovenia’s largest insurance and reinsurance companies for the purpose of insuring nuclear risks in Slovenia; via its reinsurance section, it has also participated in the insurance of nuclear danger from risk facilities located in other countries.

The Nuclear Pool GIZ was primarily set up in order to insure property and liabilities in relation to the operation of the sole nuclear power plant located in Slovenia (Krško Nuclear Power Plant, NEK). The written premiums associated with this accounts for around half of all written (re)insurance premiums; the other half comes from foreign reinsurance transactions. The insurance premiums relate to fire insurance, machinery breakdown insurance and liability insurance.

In 2010 Slovenia passed a new Nuclear Damage Liability Act, which given that the country is a signatory to the Paris Convention on Third Party Liability in the Field of Nuclear Energy, has set the highest standards of protection for potential injured parties in the event of a nuclear accident, since it provides significantly higher limits on guarantees and new required content of guarantees (for instance environmental damage).

In 2010 an intensive debate took place in Slovenia about the energy future of the country, especially in connection with the construction of the sixth block of the Šoštanj thermal power station, and consequently regarding construction of the second NEK block, in other words a second nuclear power station in Slovenia. Last year the process had still not ended and no decision had been made regarding the application to extend operation of the existing first block of the nuclear power station. On the government level preparations were still in progress, however, for a new strategy of energy development in Slovenia.

In 2010 the Nuclear Pool accepted for (re)insurance individual risks up to an amount of EUR 11,517,000 for the insurance part and EUR 11,515,000 for the reinsurance part. Statistical Insurance Bulletin 2011 63

4. Data by individual insurance class and type

In this chapter we set out in detail the individual types of insurance that con- tain different types of insurance or insurance sub-types. This composition was prescribed by the Insurance Supervision Agency, using the Insurance Statistical Standard, which entered into force at the beginning of 2009. The table shows for each insurance company the active insurance types and sub-types. These are those for which gross premiums written have been listed or shown in the statistical forms St1-19 for 2010.

Types of insurance by class and insurance company 2010

Insurance company

Types of insurance by class Adriatic Slovenica Allianz Arag ERGO Generali GRAWE KAD KD Življenje Maribor Merkur NLB Vita SID – PKZ SOP Tilia Triglav Zdravstvena Triglav Victoria-Volksbanken Vzajemna Wiener Städtische Accident insurance (including industrial injury and occupational diseases) Personal insurance against accidents at and outside regular work • • • • • • • • • • • • Personal insurance against risks to passengers in motor vehicles • • • • • • Children and schoolchildren accident • • • • • Guests, visitors and tourist group accident • • • • Consumer and customer group accident • • • • • Other special accident insurance • • • • • Compulsory accident insurance of public transport passengers • • • • Driver and car owner accident • • • • • All other accident insurance • • • Health insurance Top-up health insurance under paragraph 2 of Article 14 of the ZZavar • • • Substitutional health insurance under paragraph 2 of Article 61 of the ZZVZZ • Supplementary health insurance on travel abroad • • Other supplementary parallel health insurance under paragraphs 3 and 4 of Article 61 of the ZZVZZ • • • All other health insurance • • Land motor vehicle insurance Land motor vehicle casco • • • • • • Other land vehicle casco (vehicles without engine) • All other kinds of motor vehicle casco insurance • Railway rolling stock insurance Railway rolling stock casco • • All other kinds of railway rolling stock casco insurance Aircraft insurance Aircraft casco • • • • • All other kinds of aircraft casco insurance Ships (sea, lake and river vessels) casco insurance Sea ship casco • • • • • Lake and river vessel casco • • • All other kinds of ship casco insurance •

Note: Types of insurance are classified in accordance with the Statistical Standard and with the (table continues on next page) Decision amending Decision on Reporting Statistical Insurance Data (OJ, No 120/2008, 8/2009, 104/2009). Only the types of insurance for which insurance premiums were written in 2010 are included. Source: SZZ Statistical Insurance Bulletin 2011 64

Types of insurance by class and insurance company 2010

Insurance company

Types of insurance by class Adriatic Slovenica Allianz Arag ERGO Generali GRAWE KAD KD Življenje Maribor Merkur NLB Vita SID – PKZ SOP Tilia Triglav Zdravstvena Triglav Victoria-Volksbanken Vzajemna Wiener Städtische Goods in transit insurance Goods insurance in international transport • • • • • Goods insurance in domestic transport • • • • • • • All other cargo insurance • • Fire and natural forces insurance Fire insurance outside industry and crafts • • • • • • • • • Fire insurance in industry and crafts • • • • • • • • • Electricity supply enterprises' property • • • All other fire insurance • • • • • Nuclear risks • • Other damage to property insurance Machinery breakdown • • • • • • • • Machinery breakdown insurance for electricity supply enterprises' equipment • • • Civil construction projects • • • • • • Civil installation projects • • • • • • • Film companies • • • Electronic computers • • • • • • • • Food-in-freezer • • • • • • • Household • • • • • • • • • Ore and coal mines • • • Telecom and post office risks • • Theft • • • • • • • Glass • • • • • • • • Crops and fruit • • • • • Livestock • • • • Home assistance insurance • • Equipment leasing insurance • • • • • Combined property insurance • • • • Insurance of goods against mechanical damage • • • • Satellite and cable television distribution and reception equipment insurance • • Travel insurance • • • All other property insurance • • • • • • • Motor vehicle liability insurance Automobile liability (MTPL) • • • • • • Carrier liability-for-freight insurance in land transport • • • Railway transport liability • • • • All other land vehicles liability insurance • • Aircraft liability insurance Aircraft liability • • • • • • Carrier liability-for-freight insurance in air transport All other aircraft liability insurance Ships (sea, lake and river vessels) liability insurance Maritime transport liability • • • • • Inland waterways transport liability • Ship-repairer liability

(table continues on next page) Statistical Insurance Bulletin 2011 65

Types of insurance by class and insurance company 2010

Insurance company

Types of insurance by class Adriatic Slovenica Allianz Arag ERGO Generali GRAWE KAD KD Življenje Maribor Merkur NLB Vita SID – PKZ SOP Tilia Triglav Zdravstvena Triglav Victoria-Volksbanken Vzajemna Wiener Städtische Marina liability • • • Carrier liability-for-freight insurance in maritime and inland waterways transport All other ship liability insurance Other liability insurance (general, etc.) General liability • • • • • • • • • Manufacturer liability-for-product • • • • • • • Building contractor contractual liability • • Installation contractor contractual liability • • Manufacturer, dealer or contractor guarantee • • • Forwarding agent liability in international transport • • • Forwarding agent liability in domestic transport • • • Management board and supervisory board liability insurance • • • • Real estate agent liability insurance • • • • Film producer liability • Compulsory liability insurance for audit companies • • • • • Compulsory liability insurance for designers • • • • • • Compulsory liability insurance for lawyers • • • • • Compulsory liability insurance for physicians • • • • • Compulsory insurance for notarial liability • • Compulsory liability insurance for manufacturers of medicaments and medical aids Compulsory liability insurance for insurance agencies • • • • Compulsory liability insurance for court executors • Compulsory liability insurance for authentication agents of qualified electronic signature certificates Compulsory liability insurance for mountain guides • Compulsory liability insurance for geodesic companies • • • Compulsory liability insurance for certifying bodies for confirmation of conformity of building products Compulsory liability insurance for operators of firing ranges Guards liability insurance • • All other general liability insurance • • • • • Credit insurance Trade credit insurance (international) • • Trade credit insurance (domestic) • • Consumer credit insurance • • • • Housing credit insurance • • • • Loan insurance (sole traders) • • • • Loan insurance (legal entities) • • • Overdraft insurance (sole traders) • • • Overdraft insurance (personal accounts) • • Credit insurance (lease agreement) Credit insurance (credit cards and charge cards) • All other credit insurance • • • • Suretyship insurance Customs debt insurance • Tour operators' insolvency insurance • • Bid bond insurance • •

(table continues on next page) Statistical Insurance Bulletin 2011 66

Types of insurance by class and insurance company 2010

Insurance company

Types of insurance by class Adriatic Slovenica Allianz Arag ERGO Generali GRAWE KAD KD Življenje Maribor Merkur NLB Vita SID – PKZ SOP Tilia Triglav Zdravstvena Triglav Victoria-Volksbanken Vzajemna Wiener Städtische Performance bond insurance • • Advance repayment insurance • Warranty bond insurance • • Guarantee insurance (charge cards) • • Carnet insurance • • All other suretyship insurance • • • Miscellaneous financial loss insurance Loss-of-profit fire insurance • • • • • • • • • Machinery breakdown loss-of-profit insurance • • • • • • Show and event • • • • Insurance against purchasing counterfeit currency • • • Holiday cancellation insurance • • • • • Loss of profit in service industry insurance • • All other loss-of-profits insurance • • • Legal expenses insurance Lawyer and other legal protection expenses (litigation costs) • • • • • • All other legal expenses insurance Tourist assistance insurance Automobile assistance – on trips • • • • • • Medical assistance – on trips • • • • All other tourist assistance insurance • • • • Life insurance Life assurance • • • • • • • • • • • • • • ▶ death • • • • • • • • • • • ▶ endowment • • • ▶ death and endowment • • • • • • • • • • ▶ annuity • • • • • • ▶ annuity insurance – benefits based from pension schemes under ZPIZ-1 • ▶ refund of premium ▶ all other life assurance • • ▶ additional insurance • • • • • • • • Assurance for paying out at marriage and birth • ▶ insurance paying out at marriage • ▶ insurance paying out at birth Unit-linked life insurance • • • • • • • • • • • • • ▶ unit-linked life insurance with guarantee (investment fund) • • • • • • • • • ▶ unit-linked life insurance without guarantee (investment fund) • • • • • • • • • • • ▶ unit-linked life insurance with guarantee (pool of assets) • • ▶ unit-linked life insurance without guarantee (pool of assets) • • Tontine Capital redemption insurance • • ▶ voluntary supplementary pension insurance under the ZPIZ-1 • • ▶ all other capital redemption insurance Insurance of income loss caused by accident or illness under ZZavar Statistical Insurance Bulletin 2011 67

4.1 Accident insurance

Accident insurance cover is provided by 12 insurance companies. In 2010 they succeeded through this type of insurance in collecting over EUR 107 million in gross written premiums, which is just under three percent less than the previous year. The growth in accident insurance premiums has thus been negative for the second year running. Yet the premiums for this type of insurance still account for slightly more than 5% of all insurance premiums. Since the one-year period saw a drop in the value of claims paid out that was even greater than the drop in premiums (from EUR 42 to 39.9 million), the claims ratio improved to 37.3%. The composition of the various types of accident insurance did not experience any major changes.

Accident insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 100

0 Source: SZZ 200620006 2007 2008 2009 20102010 year

Accident insurance 2010 (breakdown by type of insurance)

Personal insurance at and outside regular work 42.7%

Other 3.5% Consumers 2.5%

Children and schoolchildren accident 4.0%

Insurance for passengers in motor vehicles 8.1%

Source: SZZ Driver and car owner accident insurance 39.2% Statistical Insurance Bulletin 2011 68

4.2 Health insurance

In terms of the share of premiums collected, health insurance is one of the leading forms of insurance in Slovenia, although it is marketed by just four insurance companies. In 2010 this type of insurance accounted for just under EUR 410 million in gross premiums written, which is five million euros less than in 2009. Health insurance, of which as much as 98% is supplementary insurance, accounts for 19.6% of all insurance business. This type of insurance is currently under the greatest threat, since the proposed healthcare reform would abolish supplementary health insurance. This means that, viewed statistically, insurance as a sector of the economy would shrink by a fifth. Undoubtedly this would be reflected in the total number of insurance employees and also in the size of key indicators, which now place Slovenia in first place in the region. By abolishing supplementary insurance, the level of insurance density (EUR 825/capita) would fall to the 2006 level, while the level of penetration (4.4% of GDP) would fall to the 1999 level. Nevertheless, health insurance companies are looking to the future with optimism, they are developing new insurance products such as insuring health resort treatment following traffic accidents, insuring serious illnesses and operations in hospital care, improved insurance with medical assistance while abroad and so forth. Owing to increased costs and other reasons, the price of supplementary insurance rose on 1 March 2011 at all insurance companies providing this cover. The claims ratio for health insurance is still among the worst, and in 2010 it even deteriorated, to 89.3%.

Health insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 400

300

200

100

Source: SZZ 2006 2007 2008 2009 2010 year

Health insurance 2010 (breakdown by type of insurance)

Other 2.5%

For additional payment 97.5%

Source: SZZ Statistical Insurance Bulletin 2011 69

4.3 Casco insurance

Statistical data indicate that casco insurance is on the rise, chiefly owing to the increase in premiums collected for casco car insurance. In all other casco insurance, less premiums were collected last year than in 2009. The biggest drop in collected premiums was seen in the casco insurance of rolling stock (index of 11.08), so this also showed the worst claims ratio (332.8%). Casco insurance is provided by seven insurance companies, which through all four types of casco insurance collected EUR 257.8 million in gross premiums written. The total amount of claims paid out (EUR 198.9 million) of all casco insurance fell by just under 10 percent, with insurance companies paying out three times more in claims for aircraft casco insurance than in 2009. The total claims ratio for all casco insurance improved to 77.2%.

Casco insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 250

200

150

100

Source: SZZ 2006200006 20072007 20082008 20092009 20102010 year

Casco insurance 2010 (breakdown by type of insurance)

Ships 0.7%

Railway rolling stock 0.1% Land motor vehicles 98.6% Aircraft 0.6%

Source: SZZ Statistical Insurance Bulletin 2011 70

4.4 Goods in transit insurance

The economic recovery and revival of trade routes are reflected in the renewed rise in the amount of collected premiums for the insurance of goods in transit. This amount rose from 2009 to EUR 7.6 million, an increase of 7.8%. Goods in transit insurance is marketed by seven companies. In 2010 they paid out to goods transporters a total of just under two million euros in claims, which was a drop of nearly a half from 2009. The claims ration thus made a significant improvement (26.3%).

Goods in transit insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 8

0 Source: SZZ 2006006 20072007 2008 2009 20102010 year

Goods in transit insurance 2010 (breakdown by type of insurance)

Domestic transport 38.3%

Other 0.3%

International transport 61.4%

Source: SZZ Statistical Insurance Bulletin 2011 71

4.5 Property insurance

The collected gross premiums written for all property or non-life insurance are gradually declining, although this does not apply to property insurance in the nar- rower sense. Premiums covering fire and natural disaster insurance, together with premiums for other damage insurance mentioned in this paragraph increased from 2009 by 1.4%, and amounted to EUR 231.5 million. In this insurance group, claims paid out were just over EUR 135 million, or a quarter less than in the previous year. The claims ratio therefore improved to 58.4%.

Damage to property insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 200

150

100

0 Source: SZZ 200620006006 20072007 20082008 20092009 20102010 year

Damage to property insurance 2010 (breakdown by type of insurance)

Other 8.1% Computers 1.7% Building 2.0% Theft 2.9%

Livestock 2.7% Fire 40.9% Crops and fruit 4.8%

Household 23.5%

Machinery breakdown 13.4% Source: SZZ Statistical Insurance Bulletin 2011 72

4.6 Liability insurance

In terms of gross premiums written, in the amount of EUR 355.3 million or 17.1% of the entire portfolio, liability insurance is in third place out of all types of insurance. In 2010 this type of insurance experienced negative growth of around 5 percent. The biggest contributing factor to this result was motor vehicle liability insurance. In the amount of collected premiums (EUR 303 million), motor vehicle liability is at the forefront of liability insurance, although it is only marketed by six insurance companies. General liability insurance is in second place in this group, with premiums of EUR 50 million. The value of collected premiums for motor vehicle liability insurance fell by just over 6 percent, but its share in the group total was still the biggest, at 85.2%, although sightly less than in the previous year. Liability insurance in the use of aircraft fell by a fifth in terms of premiums, but precisely in this type of insurance there was a significant growth in 2010 in claims paid out (index of 210.5). Meanwhile the total amount of claims paid out for all types of liability insurance stood at EUR 197.6 million, or 8.3 percentage points less than in the previous year. Owing to the sizeable decline in premiums, the claims ratio deteriorated to 68.3%.

Liability insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 400

300

200

100

0 Source: SZZ 200620000066 20072007 20082008 20092009 20102010 year

Liability insurance 2010 (breakdown by type of insurance)

Other 2.4% Product liability 1.5% Land motor vehicles liability 85.2%

General liability 10.9%

Source: SZZ Statistical Insurance Bulletin 2011 73

4.7 Credit insurance

The renewed rise in premiums collected for credit insurance (EUR 46 million or 20% more), which is marketed by five insurance companies, bears witness to the revival of the financial sector. Banks are once again expanding their range of consumer loans, which account for the most numerous portion of credit insurance, but they are being more cautious now than before the crisis. We could say that they are operating under the catchphrase “no credit without insurance”. Nevertheless there are increasing numbers of loan takers that are becoming incapable of paying annuities, so it is no surprise that the amount of claims paid out increased to EUR 45.9 million, a rise of 32.3%. There was also a corresponding deterioration in the claims ratio of almost ten percentage points (99.4%).

Credit insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 40

0 Source: SZZ 200620006 2007 2007 2009 20102010 year

Credit insurance 2010 (breakdown by type of insurance)

Other 21.9% Trade credit insurance (domestic); 8.0% of which 89.5% by SID – PKZ

Trade credit insurance (international); 22.0% of which 94.3% by SID – PKZ

Consumer credit insurance 47.2%

Source: SZZ Statistical Insurance Bulletin 2011 74

4.8 Suretyship and miscellaneous ﬁ nancial loss insurance

After several years of successive gains, in 2010 the insurance shown in this group experienced a decline in collected premiums and claims paid out. Premiums in the amount of EUR 6.9 million were 2.76% lower, while claims amounting to EUR 5.9 million were as much as 10.67% lower. Since the negative growth of claims paid out was much more pronounced than the negative growth of collected premiums, the claims ratio improved slightly (85.3%).

Suretyship insurance and miscellaneous ﬁ nancial loss insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 12

0 Source: SZZ 20062000066 20072007 20082008 20092009 20102010 year

Suretyship insurance and miscellaneous ﬁ nancial loss insurance 2010 (breakdown by type of insurance)

Other 3.4% Show and event 2.8% Loss-of-profits fire 45.7%

Suretyship 13.5%

MB loss-of-profits 12.4%

Cancellation of tourist trips 22.2% Source: SZZ Statistical Insurance Bulletin 2011 75

4.9 Legal expenses insurance and tourist assistance insurance

Insurance of the costs of legal expenses and assistance for tourists, as these two types of insurance are officially called, are also shown in a group, since their total premiums are (still) relatively small (EUR 16.4 million). Insurance for legal expenses and tourist assistance shows the greatest year-on-year growth rates for collected premiums. There was also robust growth in claims paid out (index of 127). This was even slightly higher than the growth of collected premiums (index of 120), but with EUR 7.1 million paid out, claims were significantly lower than premiums. This is also reflected in the claims ratio of 43%, although this is slightly worse than the previous year.

Sources: SZZ, SURS, MNZ, BS, AZN, JP

Legal expenses and tourist assistance insurance (gross premiums written and gross claims paid)

Premiums EUR m Claims 16

0 Source: SZZ 20062000066 2007 2008 2009 2010 year

Legal expenses and tourist assistance insurance 2010 (breakdown by type of insurance)

Medical assistance 6.5%

Other 6.2%

Legal expenses 23.8%

Automobile assistance 63.5%

Source: SZZ In 2010 a total of EUR 334.3 million was allocated from the national budget for research and development activity in Slovenia, an increase of 21% over 2009. Source: www.stat.si Statistical Insurance Bulletin 2011 77

VI. International position of Slovenian insurance

In this chapter we compare key indicators relating to Slovenia for 2010 with the same data for the EU (27) as a whole and certain selected countries for 2009. The collective data for the EU are at this moment not that reliable, since they are not quite complete and they derive from various sources. For some EU Member States we were even forced to estimate the data or obtain them from their insurance associations, since they could not be found in published form.

In the economic and financial crisis, insurance activities suffered less damage than the rest of the financial sector, although the effects of the crisis can clearly be seen in the statistical insurance data. In many EU countries the growth rates for collected premiums were negative or lower than before the crisis, with fewer insurance companies in the market, and certain key indicators were worse, including the amount of collected premiums.

Slovenia is one of the few EU Member States that managed to increase the collected premiums in the crisis period compared to the previous year. Nevertheless half of the shares of Slovenia in the EU, which we publish in the table below, are worse or less than a year earlier. There was a pronounced drop in Slovenia’s share in non- life insurance per capita, while the Slovenian share in the EU in terms of insurance

Insurance business in the European Union 2009 and in Slovenia 2010 – key ﬁ gures

Key ﬁ gures EU (27) SLO Share (%) Number of insurance companies 4,626 19 0.41 Number of employees 932,615 6,128 0.66 Average number of employees per company 202 323 159.98 Insurance premiums (EUR m) 996,499 2,094 0.21 Of which life premiums (EUR m) 613,981 656 0.11 Premiums / inhabitant (EUR) 1,994 1,022 51.25 Life premiums / inhabitant (EUR) 1,229 320 26.05 Non-life premiums / inhabitant (EUR) 778 702 90.18 Premiums / GDP (%) 8.4 5.8 69.14

Figures relate to insurance business only. Sources: SZZ, CEA, SURS, EUROSTAT Statistical Insurance Bulletin 2011 78

penetration was also lower. The penetration indicator stands at 5.8%, one tenth of a percentage point worse than in 2009, but here Slovenia is only one tenth of a percentage point behind Austria. Owing to the positive growth in premiums in 2010, Slovenia increased its insurance density. At EUR 1,022 per capita, this indicator is better than in 2009, and among the selected countries presented, Slovenia has retained its position from the previous year.

Insurance business in Slovenia 2010 and in selected countries 2009

No. of Premiums Premium/inhabitant Premium / Premium Total Life Share Total Life in Company Employee Country* Insurance Employees insurance of life insurance GDP companies (EUR m) (EUR m) (%) (EUR) (EUR) (%) (EUR m) (EUR)

Switzerland 149 49,386 35,138 19,243 54.8 4,513 2,472 9.9 236 711,497 Denmark 187 16,455 19,902 13,870 69.7 3,611 2,517 8.9 106 1,209,480 Belgium 148 23,964 28,386 18,328 64.6 2,640 1,704 8.4 192 1,184,527 EU (27) 4,626 932,615 996,499 613,981 61.6 1,994 1,229 8.4 215 1,068,500 Austria 72 26,732 16,420 7,416 45.2 1,965 888 5.9 228 614,245 Italy 234 47,369 117,866 81,120 68.8 1,963 1,351 7.7 504 2,488,252 Portugal 84 11,207 14,559 10,427 71.6 1,370 981 8.9 173 1,299,099 Slovenia 19 6,128 2,094 656 31.3 1,022 320 5.8 110 341,710 Greece 82 8,500 5,002 2,202 44.0 444 196 2.1 61 588,471 Hungary 29 26,000 2,944 1,466 49.8 293 146 3.2 102 113,231 Croatia 29 11,035 1,282 339 26.4 289 76 2.8 44 116,176 Turkey 60 18,840 5,677 835 14.7 79 12 1.3 95 301,327

* In order of total insurance premium/inhabitant Sources: SZZ, CEA, SURS, EUROSTAT, HUO

Insurance premium per inhabitant (SLO 2010, other countries 2009)

Turkey Croatia Hungary Greece Slovenia Portugal Italy Austria EU (27) Belgium Denmark Switzerland

0 500 1000 1500 2000 2500 3000 35004000 4500 EUR/inhabitant Sources: SZZ, CEA, SURS, EUROSTAT, HUO Statistical Insurance Bulletin 2011 79

Share of insurance premiums in GDP (SLO 2010, other countries 2009)

Turkey Greece Croatia Hungary Slovenia Austria Italy EU (27) Belgium Portugal Denmark Switzerland

0 1 23456789 10% of GDP Sources: SZZ, CEA, SURS, EUROSTAT, HUO

Average premium per insurance company (SLO 2010, other countries 2009)

Croatia Greece Turkey Hungary Denmark Slovenia Portugal Belgium EU (27) Austria Switzerland Italy

0 50 100 150 200 250 300 350 400 450 500 EUR m Sources: SZZ, CEA, EUROSTAT, HUO

Average premium per insurance employee (SLO 2010, other countries 2009)

Hungary Croatia Turkey Slovenia Greece Austria Switzerland EU (27) Belgium Denmark Portugal Italy

0 250 500 750 1000 1250 1500 17502000 2250 2500 EUR 000 Sources: SZZ, CEA, EUROSTAT, HUO In 2010 a total of 22,343 children were born, which is the highest figure to date in independent Slovenia. Source: www.stat.si Statistical Insurance Bulletin 2011 81

VII. Chronological overview of insurance activity in Slovenian ethnic territory

I. Period up until 1918

Precursors of insurance companies (maritime loans, brotherhoods, guilds)

1291 Maritime loans entered in notary records in Piran Piran 14th c. Brotherhood of St. Nicholas founded Trieste 1370 Furriers’ guild established; one of the first whose statute prescribed members’ obligation of mutual assistance Ljubljana 1452 Slovenian Brotherhood of St. Hieronymus founded (reciprocity of members determined in statute) Udine The founding of the ﬁ rst insurance companies

1766 First insurance company founded on Slovenian ethnic territory under the Austro-Hungarian Empire – Compagnia di Assicurazione Trieste 1776 First initiative to found an insurance company in Ljubljana Ljubljana 1812 Founding of an insurance company for navigation on the River Sava Ljubljana 1829 Founding of Imperial-Royal privileged insurance company for fire damage in Styria, Carinthia and Carniola Graz 1853 Carniolan agricultural association proposes founding of insurance company for compulsory insurance against fire and other accidents Ljubljana 1871 Initiative to found Danica Reinsurance Company in Celje Celje 1871 Founding of first general insurance bank, Slovenija (first modern Slovenian insurance company based in Ljubljana) Ljubljana 1889 Founding of Workers’ Accident Insurance Company for Trieste, Littoral and Carniola Trieste 1898–1910 Founding of several associations (insurance companies) for insuring livestock in Littoral and certain other places Trieste area 1900 Founding of Mutual Insurance Company for fire damage and damage to church bells in Ljubljana Lubljana

II. Period of Yugoslavia (Kingdom of Serbs, Croats and Slovenes, Yugoslavia)

Kingdom of SCS or Kingdom of Yugoslavia (1918–1945)

1922 Founding of Slavija, Yugoslav Insurance Bank in Ljubljana Ljubljana 1927 Founding of People’s Self-Assistance in Maribor Maribor 1932 Founding of Society of St. Florian Insurance Cooperative Against Fire Damage Ljubljana 1939 Founding of Drava Commercial Insurance Company Maribor

DFRY, FPRY, SFR Yugoslavia (1945–1990)

1946 State Institute of Insurance and Reinsurance renamed State Insurance Institute – SII Belgrade 1956 Founding of Fund for Mutual Assistance of Independent Tradesmen of Slovenia, renamed Fund for Craftsmen and Entrepreneurs (FCE) in 2000 Ljubljana 1961 Founding of numerous municipal insurance companies and Insurance Community of Slovenia Ljubljana 1967 Merger of all Slovenian insurance companies, except Maribor Insurance Company, into Sava Insurance Company Ljubljana 1977 Merger of Sava Insurance Company and Maribor Insurance Company into Triglav Insurance Community Ljubljana 1976 Founding of Sava Reinsurance Community Ljubljana 1990 Transformation of Triglav Insurance Community and some of its regional units into joint-stock insurance companies – Triglav Insurance Company, Maribor Insurance Company, Adriatic Insurance Company, Tilia Insurance Company Ljubljana 1990 Transformation of Sava Reinsurance Community into joint-stock company Reinsurance Company Sava, Limited Ljubljana 1990 Organisational unit of the Dunav Insurance Community in Ljubljana becomes independent joint-stock company, Ljubljanska Insurance Company Ljubljana Statistical Insurance Bulletin 2011 82

III. Republic of Slovenia (1991 – present)

1991 Founding of new joint-stock insurance and reinsurance companies: Prima Insurance Company (renamed GRAWE in 2001), Mercator Insurance Company (renamed Krekova Ljubljana, Insurance Company in 1999) and Inter Reinsurance Company (dissolved in 2001) Maribor 1992 Founding of Slovenian Insurance Bureau (renamed Slovenian Insurance Association in 1997) Ljubljana 1992 Founding of joint-stock insurance company Merkur Insurance Company Ljubljana 1992 Transformation of organisational unit of Croatia Insurance Company in Ljubljana into joint-stock insurance company Slovenica Ljubljana 1992 Founding of Slovene Export Corporation (SID) Ljubljana 1994 Founding of Concordia Pension Insurance Company Ljubljana 1994 Founding of Slovenian Nuclear Insurance and Reinsurance Pool (JP) Ljubljana 1994 Founding of Office of Insurance Supervision (renamed Insurance Supervision Agency, AZN in 2000) Ljubljana 1996 Founding of Capital Fund for Additional Pension and Disability Insurance (renamed Pension Fund Management (KAD) in 2000) Ljubljana 1997 Founding of joint-stock company Generali Insurance Company Ljubljana 1998 Founding of Fund for Additional Pension and Disability Insurance (joined to Capital Fund for Additional Pension and Disability Insurance in 2000) Ljubljana 1998 Founding of Triglav RE Reinsurance Company Ljubljana 1999 Founding of Health Insurance Mutual (Vzajemna, zdravstvena zavarovalnica, d. v. z.) Ljubljana 2002 Founding of TRIGLAV Health Insurance Company (TRIGLAV, zdravstvana zavarovalnica) Koper 2003 Founding of NLB Vita Life Insurance Company Ljubljana 2004 Founding of joint-stock company ARAG Legal Expenses Insurance Ljubljana 2004 Founding of branch of Austrian insurance company Wiener Städtische Ljubljana 2004 Founding of SID – First Credit Insurance Company (SID – PKZ) Ljubljana 2005 Founding of Slovenica Life Insurance Company Ljubljana 2005 Founding of branch of Austrian insurance company Victoria-Volksbanken Maribor 2005 Merger of Adriatic Insurance Company and Slovenica Insurance House into Adriatic Slovenica Insurance Company Koper 2007 Slovenica Life Insurance Company renamed KD Life Insurance Company (KD Življenje, zavarovalnica, d. d.) Ljubljana 2007 Founding of branch of Allianz Hungaria Zrt. Insurance Company Ljubljana 2007 Founding of First Personal Insurance Company (Prva osebna zavarovalnica, d.d.) Ljubljana 2008 Zürich Insurance Ireland Ltd. applies for SIA membership Ljubljana 2009 Wiener Städtische, Vienna Insurance Group becomes a member of the SIA Ljubljana 2009 Allianz Hungaria Zrt. Insurance Company becomes a member of the SIA Ljubljana 2009 Victoria-Volksbanken Insurance Company becomes a member of the SIA Ljubljana 2010 ERGO Insurance Company becomes a member of the SIA Ljubljana

Sources: 1. Škufca F., Zavarovalstvo na Slovenskem (Insurance in Slovenia), SZZ, Ljubljana 2003 2. Data from AZN 3. Data from SZZ Statistical Insurance Bulletin 2011 83

Glossary of abbreviations

AZN – Agencija za zavarovalni nadzor (Insurance Supervision Agency – ISA) BS – Banka Slovenije (Bank of Slovenia) CEA – Comité Européen des Assurances (European Insurance and Reinsurance Federation) EUROSTAT – Evropski statistični urad (Statistical Office of the European Union) HUO – Hrvatski ured za osiguranje (Croatian Insurance Bureau) JP – Jedrski pool GIZ (Nuclear Insurance and Reinsurance Pool) KAD – Kapitalska družba pokojninskega in invalidskega zavarovanja, d. d. (Pension Fund Management Company – PFM) LB – Ljubljanska borza (Ljubljana Stock Exchange) MNZ – Ministrstvo za notranje zadeve (Ministry of the Interior) NFD – NFD 1 Delniški investicijski sklad, d. d. (NFD 1 Stock Invest Fund, p. l.c.) PIC – Pension Insurance Claims PIP – Pension Insurance Premiums SID – PKZ – SID – Prva kreditna zavarovalnica, d. d., Ljubljana (SID – First Credit Insurance Company – SID – FCI) SOD – Slovenska odškodninska družba, d. d. (Slovene Restitution Fund) SOP – Sklad obrtnikov in podjetnikov (Fund for Craftsmen and Entrepreneurs – FCE) SURS – Statistični urad Republike Slovenije (Statistical Office of the Republic of Slovenia) SZZ – Slovensko zavarovalno združenje (Slovenian Insurance Association – SIA) ZPIZ-1 – Zakon o pokojninskem in invalidskem zavarovanju (Pension and Disability Insurance Act) ZRSZ – Zavod Republike Slovenije za zaposlovanje (Employment Service of Slovenia) ZZavar – Zakon o zavarovalništvu (Insurance Act) ZZVZZ – Zakon o zdravstvenem varstvu in zdravstvenem zavarovanju (Health Care and Health Insurance Act) ZZZS – Zavod za zdravstveno zavarovanje Slovenije (Health Insurance Institute of Slovenia)