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Insurer Zavarovalnica Triglav Increases Profit (adds)

Ljubljana, 25 November (STA) - The parent company of insurance group Zavarovalnica Triglav posted a net profit of EUR 28m in the first nine months of 2009, which is a 16% increase over the same period last year. The total assets of Slovenia's biggest insurance company increased by 11% to EUR 2.6bn, the company said in a press release on Wednesday.

Gross premium revenues were down 1% to EUR 583.4m, net premium revenues remained flat at EUR 501.2m, while gross damage payments were up 4% to EUR 331.5m.

On the level of the group, which failed to present consolidated data, gross premium revenues stood at EUR 771.2m, while payments amounted to EUR 442m.

Zavarovalnica Triglav said the company's results were affected by the crisis, which brought down demand while also increasing damages payments. Damages caused by extreme weather occurrences too affected the results.

Matjaz Rakovec, who took over as the chairman of Zavarovalnica Triglav in October this year, told the press today that he was happy with the results given the circumstances.

Rakovec explained that a 9% drop in premium revenues had been recorded in life insurance, while property insurance, which accounts for 75% of the company's revenues, was affected by the crisis via a decline in insurance packages connected with production and transport.

Also highlighted at the press conference were the company's problems with agricultural insurance, which has been significantly affected by bad weather. The company believes more should be done to encourage a preventive approach in this area.

Igor Stebernak, who is responsible for strategic investments and control, meanwhile announced among the key measures the strengthening of the company's position in SE Europe markets and the development of insurance banking, not excluding a foray into new markets.

The insurer's supervisors agreed on Tuesday on a new EUR 30m subordinated bond issue, which will be followed up by a bid for the redemption of an existing EUR 30m bond issue.

According to the company, which plans to reveal more about the issue after specifying its conditions, the move is designed to secure Zavarovalnica Triglav's capital adequacy.

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