Chief supervisor Mihael Perman told the STA after the session that Rakovec was dismissed for "business and economic reasons".

Elaborating on this today, he said that there had been several reasons for the decision, but that the supervisors had been bothered most by his "non-responsiveness" in providing information on "certain issues".

The chief supervisor also said that the business results looked good only at first glance while a more in-debt inspection revealed major problems with subsidiaries in the Balkans.

Perman also said that the results of this year's audit showed that some of the things that are crucial for Triglav were not functioning well.

While Perman refused to say whether the supervisors were unanimous in their decision, the business daily Finance reported on-line that the supervisors were very much divided.

One issue of concern is also whether Rakovec will get severance pay. According to Perman, this will depend on whether he will stay with the company or not.

If he leaves the company, he will be entitled to severance pay in the amount of six gross wages, which is around EUR 75,000 gross.

The supervisors also reviewed last night a report on Zavarovalnica Triglav's deals with International Finance Corporation (IFC), a part of the World Bank.

IFC signed a contract with Zavarovalnica Triglav in April 2012 on a capital increase in company Triglav INT, which includes the insurer's subsidiaries in the Balkans. It committed to paying EUR 25m in exchange for a 16.68% stake in the company.

But IFC failed to buy the shares until the 31 December 2012 deadline, which is why Zavarovalnica Triglav and Triglav INT called on the corporation to immediately meet its demands, shows a report of last night's session published on the website of the Ljubljana Stock Exchange.

IFC is currently reviewing last year's business results of Triglav INT and its subsidiaries. Based on the information gathered, it will then decide whether to proceed with the recapitalisation or withdraw from the deal, according to the report.

The supervisors also agreed that Triglav INT will provide a capital injection in the amount of EUR 4.7m to Croatian subsidiary Triglav osiguranje to boost its capital adequacy.

Rakovec took over at the helm of Zavarovalnica Triglav on 15 October 2009 for what was supposed to be a five-year term.

The Securities Market Agency, which Perman used to head, recently launched infringement proceedings against him and Zavarovalnica Triglav because he disclosed last month the proposed amount of the dividend payment in an interview with a Croatian daily before the shareholders were properly informed.

The watchdog argued that the disclosure of the amount of the dividend payment proposed by the management constitutes insider information and a violation of the financial instruments market act and referred the insurer and Rakovec to the prosecution.

But according to the on-line Finance, the prosecution dismissed the report, saying that Rakovec did not commit any offence for which he could be prosecuted.

The anonymous report also included allegations regarding writing off of claims to company Toko, controversial paying of services to company Mizarstvo Vidmar and granting of funds to the Slovenian Ice Hockey Federation.