"We planned a recapitalisation, which is standard practice in such transactions. Companies do not have surplus capital...they secure capital for new projects on the market," he told Monday's edition of the daily Delo.

Triglav was one of three bidders to submit an offer, alongside Polish insurer PZU and Adris, a Croatian conglomerate. PZU and Adris have been invited to conduct additional negotiations.

Runjak suggested he was surprised by the decision of the Croatian government. "If I was on the other side, I would have acted differently. I would let all three into the final round."

According to Runjak, PZU and Adris had more money on their accounts since they are financially stronger, "but if I was a Triglav shareholder I'd rather see Triglav complete recapitalisation, this is the only smart way to manage limited funds."

Aside from financing, Runjak acknowledged that Zavarovalnica Triglav being state-owned "may have been one of the reasons" why the Croatian government decided against it.