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Triglav Group Increases Profit, Ready to Recapitalise Abanka

Ljubljana, 30 August (STA) - The group around Slovenia's biggest unsurer, Zavarovalnica Triglav, reported on Wednesday a EUR 41.6m net profit for the first half of the year, which is a 22% improvement year-on-year. Triglav moreover confirmed it was ready to participate in a capital increase at Abanka, but under certain conditions.

The higher profit at group level comes despite a 5% drop in premium revenues to EUR 523.6m, the unaudited results show.

The net profit for the core company was down 18% to EUR 25m, which the company ascribes to impairments worth EUR 32.3m. Another EUR 10.2m were lost as a result of the Greek debt write-off.

Zavarovalnica Triglav contributed EUR 372.2m to the group's total premium revenues, which was a 6% nominal decrease on the first six months last year.

The company pointed to a drop in demand for certain products as a result of the crisis.

Profit continued to improve in the property insurance segment. It was up from EUR 35m to EUR 39.5m for the core company, and from EUR 38.2m to EUR 40.7m at group level.

Triglav's supervisors meanwhile agreed with the company's participation in the first round of a capital rise at Abanka Vipa, the country's No 3 bank.

The insurer is however only ready to participate in proportion to its existing stake, which is at 25.61% or with EUR 12.8m at EUR 7 per share.

The conditions include Triglav and other investors related to the state not exceeding the takeover threshold and moreover having less than a third of voting rights at Abanka Vipa after the recapitalisation.

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