Ljubljana - Zavarovalnica Triglav, Slovenia's largest insurance company, posted a group net profit of EUR 33.2 million for the first quarter of 2022, a year-on-year increase of 25%. Revenue grew by 12% to EUR 443 million despite what the company described Thursday as a challenging situation.

Consolidated profit before tax, amounting to EUR 38.1 million, was 20% higher than in the same period last year, with its growth stemming from underwriting activities and own asset management.

Gross written premium increased by 10% to EUR 407 million with premium growth recorded in all insurance segments and in all markets of the region where the group operates.

Other insurance revenue was up by 22% to EUR 16.5 million, and other revenue of the group increased by 81% to EUR 19.4 million.

Premium growth amounted to 11% in non-life insurance, 9% in life and pension insurance, and 3% in health insurance. Premiums were up by 5% in Slovenia and by 13% in the Adria market.

Premium growth affected the volume of claims, which increased by 15% and amounted to EUR 196.7 million, having grown from a low base in the first quarter of 2021 due to the effects of the Covid pandemic.

Gross operating costs increased by 11% to EUR 83.8 million, while technical provisions amounted to EUR 3.22 billion at the end of the quarter, which is 1% more than at the end of last year.

The combined ratio in non-life and health insurance, a key industry benchmark, increased by 0.6 points to 87.3% as a result of the improved claims ratio due to higher net premium income and the effect of managing insurance technical provisions.

While net profit increased by 25% to EUR 33.2 million, pre-tax profit was up by a fifth to EUR 38.1 million, with the bulk of the profit (EUR 30.6 million) coming from insurance business, whose profitability increased by 16%.

Profit from financial investments dropped by 87% to EUR 500,000, while profit of non-insurance companies in the group jumped from EUR 1.6 million in the first quarter of last year to EUR 7 million euros this year.

Conditions in the first three months of the year were unfavourable for the management of the group's investment portfolio of EUR 3.51 billion, with the group impairing Russian bonds in the portfolio in the amount of EUR 6.2 million.

A negative yield on investment of EUR 15.9 million was recorded in the first quarter due to these circumstances.

Zavarovalnica Triglav chairman Andrej Slapar said the group was expected to post a pre-tax profit of up to EUR 130 million, which would be slightly less than in 2021. Gross written premiums are planned to slightly increase to EUR 1.4 billion.

The management and supervisory boards have proposed a EUR 3.7 gross dividend per share for the 24 May AGM, which means 74% of the group's net profit will be earmarked for the dividend payout.