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The decline in premiums collected is the result of a planned downscaling in Slovenia and abroad, since several non-profitable contracts have not been extended, the company said.

Also affecting revenues is the downgrade by rating firm Standard & Poor's in 2012.

While premiums in property insurance decreased, premiums from life insurance rose by 3.3% in Q1.

Damages paid out in the first quarter increased by 12.5% to EUR 32.7m, mostly on the account of higher damages paid out abroad.

The core company saw its premiums drop by almost 10% to around EUR 53m in the January-March period. Net profit in the quarter tripled to EUR 5.1m.