In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation, ZAVAROVALNICA TRIGLAV d.d., Ljubljana, hereby publishes the following notice:

The Triglav Group hereby publishes its Strategy for the 2017–2020 period and the Business Plan for 2017, with their summaries enclosed hereto.

1. The Triglav Group Strategy for the 2017–2020 Period

Through its vision, values and strategic objectives, the Triglav Group has set out on a clear path to become a modern, innovative and dynamic insurance/financial group, firmly remaining the leader both in Slovenia and the wider region.

Mission, values and vision of the Triglav Group

The vision of the Triglav Group for 2020 is the dynamic development of new ways of business as the foundation of the Group’s responsible long-term development, while at the same time operating profitably and safely. The Group’s mission is BUILDING A SAFER FUTURE for its stakeholders, while being committed to responsible and sustainable development. The cornerstone of the Group is its team of over five thousand employees, who achieve the Group’s mission through their commitment, expertise and dedication. They are connected by the common values incorporated into the Triglav Group’s culture: safety, responsibility, professionalism, simplicity and modernity.

Client-tailored operations aimed at digitisation, multi-channel approach and assistance services 

The core strategic activities of the Group are insurance and asset management. At the end of the strategic period, the Triglav Group will be the leading provider of innovative and comprehensive insurance-service products and asset management on the existing markets in South-East Europe.

All of its activities are centred around its clients, who are monitored individually and throughout their whole lifelong path as users. The Group’s increasingly digitised processes are adapted to the clients and their changing needs, in addition to developing innovative products, which are aimed to be both simple and known for their multi-channel availability, i.e. a mix of traditional and digital sales approaches. The Group’s range of insurance products is being upgraded with assistance services.

With respect to asset management, the strategic objective of the Group is to increase the volume of assets under management or the share of assets managed for a particular client.

Sound and profitable performance while strengthening the competitive advantages of the Triglav Group

The operations of the Triglav Group will be profitable and aimed at increasing the value of the Group. In the long-term the core insurance business will be profitable, whilst the average target combined ratio in non-life insurance will be around 95%. The return on equity (ROE) of the Group will surpass 10% in 2020. The Group will ensure effective and comprehensive management of risks, cost-effectiveness, its financial stability and appropriate capital adequacy. The Group will maintain its “A” credit ratings. Apart from that, the criteria of the dividend policy and the capital management guidelines will remain unchanged.

In its operations, the Group will not only exploit but also enhance its competitive advantages. The Triglav Group has a strong, trustworthy brand, a large client portfolio, and extensive and developed sales channels, in addition to being known for its range of quality products and services and quick settlement of claims. Furthermore, the Group is set apart from its competitors by its attitude towards the market. Its long-term focus on the markets in the region requires the Group to both actively and responsibly invest in the market and its relations with the stakeholders.

The Triglav Group in the region and beyond

The Group will continue to operate in six countries of South-East Europe, where it will grow organically, however potential takeovers are not ruled out should an appropriate opportunity present itself. In the region where the Group operates, a long-term accelerated growth of insurance markets is expected, resulting in a higher share of total written premium on the markets outside Slovenia. The Group will continue to develop the markets in the region, primarily investing in those insurance segments where the highest growth rates are expected (life, health and pension insurance). Digital business models will be developed, which will enable the Triglav Group to enter the markets outside the existing region. The Group will build strategic partnerships with the companies whose activities complement its business model.

Optimal organisational structure of the Triglav Group

An increasingly flexible organisational structure of the Group is being implemented so as to ensure an effective balance between the stability and dynamics of organisation, thereby reducing strategic and other risks. Synergies will continue to be exploited and operating expenses optimised at the Group level, in addition to the establishment of a comprehensive innovation system within the organisation.

2. The Triglav Group Business Plan for 2017

In 2017, the Group’s operations will continue to be financially sound and profitable, earning profit before tax of EUR 70–80 million. The Group plans to maintain its strong financial stability and capital adequacy, which is the basis for the dividend payment for 2016 as set out in the adopted dividend policy.

It is expected that the Group will operate under the challenging conditions on the insurance markets and in the environment of record low or even negative interest rates on the financial markets. In 2017, the Group plans to book around EUR 930 million in consolidated gross written premium (vs. approximately EUR 900 million planned for 2016), while recording similar trends in claims experience as in previous years and lower returns on investment due to the impact of low interest rates. With respect to investments, the Group’s investment policy will continue to give priority to investment security and liquidity. The combined ratio of the Triglav Group is planned at around 95%. In accordance with its strategic guidelines, the Group will strengthen and consolidate its position on the existing insurance markets.

Andrej Slapar, President of the Management Board of Zavarovalnica Triglav: “We are entering the next strategic period with ambitious and clearly defined objectives. We see ourselves as a modern digital insurance/financial group, holding the leading position in the region and being known for its numerous competitive advantages. These advantages will be further strengthened. With this in mind, we wish to maintain financially stable and profitable operations, pursue sustainable development goals and in this way act responsibly towards our shareholders, employees, local communities and environment in general. In 2017 we will actively implement projects with the aim of achieving our strategic guidelines and objectives.”   

This information will be published on the website of Zavarovalnica Triglav d.d. at www.triglav.eu as of 23 December 2016 and will remain available on the Company's public website for a period of at least five years.