The net profit of the TRIGLAV Group in 2012 amounted to EUR 73.2 million, 54% higher y-o-y, whilst the net profit of the parent company, Zavarovalnica TRIGLAV, counted up to EUR 50.4 million, 15% y-o-y. The returns on equity of both the TRIGLAV Group and Zavarovalnica TRIGLAV d.d. in 2012 were again higher than expected. At the Group level the return was 13.8% or 4.2 pp higher than in 2011, a result that excelled the ROE target for 2015 (i.e. 12%). In Zavarovalnica TRIGLAV alone ROE improved by 1.1 pp, to 10.7%, and was closer to the targeted level than in 2011.

In 2012 the TRIGLAV Group posted a total of EUR 936.3 million in insurance and co-insurance premiums (5% less y-o-y), of which the controlling company charged EUR 647.6 million.

Profit growth was primarily due to good results in the core business of insurance, as shown in a better combined ratio as compared with 2011. Thus, at the Group's level the combines ratio was of 89.6% (vs. 90.1% in 2011), while at the level of Zavarovalnica TRIGLAV the indicator's value was of 81.4% (vs. 83% in 2011).

Several factors led to a decrease in the total written premiums: a reduced demand for certain insurance products, new bankruptcies of companies, lower purchasing power of households, higher unemployment rate, diminished scope of bank lending, measures for keeping good and loyal clients by means of a new client loyalty program, revising pricing to match competition, as well as measures to improve insurance technical results in individual non-life insurance classes. Increased competitiveness in the motor vehicle insurance market resulted in the adjustments of insurance terms and conditions and reduced the volume of written premiums from car insurance. These premiums were under additional pressure due to asystematic insurance portfolio selection and intense measures taken to mitigate poorer technical results of insurance in the non-life segment, which helped improve the claims ratio.

As a result of greater cost effectiveness, gross operating costs of Zavarovalnica TRIGLAV decreased by 2% in 2012 over 2011. Consolidated gross operating costs were 5% higher than the year before, primarily due to including new non-insurance companies in the TRIGLAV Group.

As it is closely intertwined with financial markets, the Group could not entirely avoid the influence of the financial and economic crisis, since financial investments represent a major part of its total assets. Despite the relatively conservative investment policy of the TRIGLAV Group, the value of certain investments decreased and led to lower net profits. Owing to significant or long-term decreases in the value of investments, permanent impairment of financial assets reached EUR 43.7 million.