Ljubljana, 04 July (STA) - Slovenia's insurance companies generated a cumulative net profit of EUR 132.7 million in 2018, up 6.5% annually, with reinsurers posting a 17% rise to EUR 46.4 million.
The director of the Insurance Supervision Agency, Gorazd Čibej, said the industry had operated in a stable manner last year, meeting all capital adequacy standards.
Collected gross premiums reached EUR 2.1 billion, up 5.7% over 2017, rising by 6.3% in property insurance and 3.9% in life insurance, Čibej told the press on Thursday.
Loss ratio improved by 2.1 percentage points, according to Čibej, who attributed it foremost to the fact that 2018 was more favourable than 2017 for the industry. For reinsurers, 2017 was the fourth worst year in 40 years.
Slovenia's two reinsurers were the most affected by payments of damages in 2018, mostly due to typhoons in Japan, floods in India and Germany's Friederike storm.
The country's insurance market is very concentrated, with four largest insurance companies collecting around 76% of all premiums.
Following Generali's takeover of Adriatic Slovenica, a new major insurance company is emerging in Slovenia which is to have a 19% market share.
Of the 13 insurance companies, Zavarovalnica Triglav has the largest share in property insurance (45%) and life insurance (30%).
Vzajemna is the market leader in health insurance (43%) and Skupna Pokojninska Družba is No. 1 pension insurance company (45%).
The insurance companies considerably surpassed the required capital adequacy ratio in 2018, which means the market is well capitalised, said Čibej.
"For consumers this means that insurance policies are safe, which is the most important for us," he said, also pointing to this year's implementation of the changes to the insurance act which bring better consumer protection.
At the end of 2018, the country's insurance industry featured 13 insurance companies, two reinsurers, and three pension companies, which posted a net profit of EUR 1.8 million.