Triglav Insurance CompanyCooperation with insurance intermediaries(Brokers)

Filip Brezec

Ljubljana, November 2014

Sloveniageneral information

• Member of the European Union (since 2004)

• Currency: Euro (since 2007)

• Population: 2 million

• GDP per capita in 2013: EUR 17,128.00

• Insurance premium in GDP: 5,5%

• Premium per capita: EUR 945,00

• GDP growth index -1,1%

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Triglav Group History

• Established as first Slovenian Mutual Insurance Company on July 5th 1900

(fire, church bells)

• Many reorganisations through 20th century

• Transformation into a joint-stock company in 1990

• Intensive Internationalisation and Expansion of the Group from 2000 - 2008

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Triglav Group

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Triglav Group

Key Features Core business

Insurance

Asset management

Supporting activities for two key pillars

Triglav Group

Controlling company: ZavarovalnicaTriglav d.d. Ljubljana, Slovenia

Market presence: 7 countries and 8 markets

Ratings

S&P rating A-/stable outlook

AM Best rating A-/positive outlook

5

Insurance Intermediaries Round Table, CEF Ljubljana, November 2014

Market Shares in 2013Triglav Group ranks first in Adria region

6

20.6%

9.8%

9.2%

7.6%

7.3%

6.4%

6.0%

4.6%

4.0%

3.5%

0% 5% 10% 15% 20% 25%

TRIGLAV

CROATIA

SAVA

ADRIATIC SLOVENICA

AGRAM

VZAJEMNA

GENERALI

VIG

DUNAV

ALLIANZ

Market share in Adria region (in %)

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7

Gross Written Premium in 2013

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8

Strategy – Profitability of Core Business

Key measures taken

• More conservative pricing of certain products

• More conservative risk selection

• Strengthening of all underwriting activities

GWP development in EUR billion Return on equity

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Distribution Channels in Zavarovalnica Triglav(non-life)

• In Triglav we use various ways of distribution. These can be split into internal and external sales. Internal sales channels generate 77% while external generate 23% of total non- life premium income.

• Internal sales channels are: tide agents (94,5%), Counter sales (5,1%), other (e.g. telephone, Internet, etc.(less than 0,5%))

• External sales channels are: Insurance agencies (43,6%), Brokers (52,8%), other (e.g. Leasing, Bank assurances, Travel agencies, etc.(3,6%))

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Insurance Intermediaries

• An intermediary (or go-between) is a third party that offers intermediation services between two trading parties.

• Definition: activities of introducing, proposing or carrying out other work preparatory to the conclusion of contracts of insurance, or of assisting in the administration and performance of such contracts, in particular in the event of a claim.

• Two types of insurance intermediaries: Insurance agencies (act in the name of one or more insurance companies) Insurance Brokers (act on behalf of insured person).

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Insurance Brokers

• Domestic brokers: 98 broker companies

• EU Member states brokers: over 5,000 broker companies

• Triglav cooperate with more than 70 domestic broker companies and 10 EU Member states

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Insurance Brokers

• Premium income through broker channel increased in year 2013 by 6% to amount of 50,2 mio EUR

• 34 mio EUR premium is generated in the corporate segment and 16 mio EUR in the SME segment (corporate client –premium volume more than 200,000 EUR)

• 82,5% premium income is generated by brokers in corporate segment and 23,2% in SME segment

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Insurance Brokers - Activities

• Gathering information from clients, assessing their insurance needs and risk profile

• Foreseeing clients insurance needs and understanding clients business

• Preparing underwriting reports and survey reports

• Renewing or amending existing policies

• Ensuring clients to understand the terms and conditions

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Triglav - Activities

• Inform brokers about new insurance products and insurance solutions

• Inform broker about claims statistics

• Settle fees or commission

• Average commission a little under 10%

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Issues for the Future

• More added value for the clients

• More transparency: disclosure of remuneration

• Conflict of interest

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Hvala

Filip Brezecfilip.brezec@triglav.si