ANNUAL REPORT OF ZAVAROVALNICA MARIBOR d.d. 2008

Transcription

ANNUAL REPORT OF
ZAVAROVALNICA MARIBOR d.d.
2008
BUSINESS REPORT OF
ZAVAROVALNICA MARIBOR D.D.
2008
B U S I N E S S
R E P O R T
Zavarovalnica Maribor Annual Report 2008
3
BUSINESS REPORT
1.
ZAVAROVALNICA MARIBOR IN 2008
1.1
1.2
1.3
1.4
1.5
1.6
2.
3.
4.
5.
6.
5
Performance Highlights
Growth and development of the company 2004 – 2008
History and development of Zavarovalnica Maribor
Events that marked the year of 2008 in ZM
Report by the Management Board
Report on the work of the Supervisory Board of ZM d.d. in 2008
5
6
9
10
12
13
COMPANY PROFILE
15
2.1
2.2
2.3
2.4
15
15
16
16
Company Profile of Zavarovalnica Maribor
Mission, Vision and Values
Share capital and shareholders Main Activities of the Company and Insurance Products BUSINESS PERFORMANCE REPORT FOR 2008
19
3.1
3.2
3.3
3.4
3.5
3.6
3.7
19
21
29
33
35
38
38
Economic Environment and Insurance Business in 2008
Financial Situation and Financial Result of the Company in 2008
Performance of more Important Insurance Classes in 2008
Business Partners, Business Network and Customer Relations Information Technology and Investments Internal Audit Report
Events after the Reporting Period SUSTAINABLE DEVELOPMENT REPORT 39
4.1
4.2
4.3
4.4
4.5
4.6
39
40
44
44
45
46
ZM in the Eyes of its Employees Employees and Training Quality Management System
Social Responsibility
Communication with Target Groups Management of the Environment
MANAGEMENT BOARD AND SUPERVISORY BOARD
47
5.1
5.2
5.3
5.4
5.5
47
49
50
51
52
Management Board
Supervisory Board
ZM Sectors and Services Directors Map of ZM Business Units in Slovenia
ZM Business Units
SELECTED FINANCIAL AND ACCOUNTING INDICATORS OF BUSINESS OPERATIONS 200853
B U S I N E S S
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4
1.
ZAVAROVALNICA MARIBOR IN 2008
1.1 Performance Highlights
2008
2007
Gross premium in non-life insurance
000 EUR
185.868
170.673
Gross premium in life insurance
000 EUR
65.977
63.674
Incurred loss result/ratio of non-life insurance
%
64,9%
66,9%
Incurred loss result/ratio of life insurance
%
49,9%
47,7%
Total assets
000 EUR
634.940
603.814
Financial investments and investment real estate
000 EUR
463.892
471.407
Gross technical provisions
000 EUR
507.718
475.031
Capital
000 EUR
54.973
69.008
Net profit or loss
EUR
2.791.783
4.155.332
Book value per share
EUR
8,07
10,12
EUR
0,41
0,65
31.12.
909
894
Net earnings per share
Number of employees
COMPARISON: YEAR 2007 = 100
Gross premium in non-life insurance
Gross premium in life insurance
Incurred loss result of non-life insurance
Incurred loss result of life insurance
Total assets
Financial investments and investment real estate
2007
2008
Gross technical provisions
Capital
Net profit or loss
Book value per share
Net earnigns per share
Number of employees
60
70
80
90
B U S I N E S S
R E P O R T
5
100
110
1.2 Growth and development of the company 2004 – 2008
TOTAL ASSETS / GROSS TECHNICAL PROVISIONS
700
Volume in EUR million
600
500
400
300
533
484
434
344
475
408
360
635
604
508
200
100
0
2004
2005
2006
TOTAL ASSETS
2007
2008
GROSS TECHNICAL PROVISIONS
In the last five years, total assets increased 1.5 times or resp. by EUR 200.8 milion. In 2008 total assets
increased by 5.2 per cent, while gross technical provisions grew by 6.9 per cent. Due to provisions for claims
outstanding for adverse weather in 2008 the share of technical provisions in reinsurance grew by 25 per cent
in comparison with 2007, while total assets exceeded net technical provisions by about 45 per cent.
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GROSS INSURANCE PREMIUM / NET TECHNICAL PROVISIONS
450
400
350
300
301
435
417
361
322
250
200
150
176
210
188
100
234
252
50
0
2004
2005
2006
2007
NET TECHNICAL PROVISIONS
2008
GROSS PREMIUM
While gross premium and net technical provisions continued to grow, the ratio between these two items
remained 1 : 1.75.
SIMPLE CLAIMS RATIO
300
80%
70%
60%
200
50%
150
40%
30%
100
20%
50
10%
0
0%
2004
2005
GROSS CLAIMS
2006
2007
GROSS PREMIUM
B U S I N E S S
R E P O R T
7
2008
SIMPLE CLAIMS RATIO
In %
250
The development of gross insurance premiums and claims indicates the consequences of adverse weather
(storms), which affected claims ratio in 2008. By reaching 75.7 per cent, claims ratio exceeded the five-year
average by 10 percentage points:
300.000
920
290.000
900
280.000
880
270.000
260.000
860
250.000
840
240.000
820
230.000
800
220.000
210.000
780
200.000
760
2004
2005
2006
2007
GP per employee
Average number of employees
Gross premium (in EUR)
GROSS PREMIUM AND EMPLOYEES
2008
Employees
Productivity, measured by gross premium per employee, increased by 4.4 per cent in 2008. In the last five
years, productivity grew on average by 5.5 per cent per annum.
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1.3 History and development of Zavarovalnica Maribor
The history of ZM goes back to the first half of the nineteenth century. Some of the milestones are: 1833
The town of Maribor had its buildings insured against fire damage by the Austrian Insurance Institution
1840
Karl Denke and Karl Gerdes, the owners of a coffee substitute factory in Rače, agitate insurances against
hail. They represented Mariborska vzajemna zavarovalnica
(Maribor Mutual Insurance Company).
The time before the first world war
Head offices of seventeen insurance companies from Vienna, Trieste, Graz and London were opened in
Maribor, most of which still operate as agencies in Maribor.
1927
The insurance company “Ljudska samopomoč” (People’s Self-Aid) was established in Maribor. Its objective
was to help relatives cover the expenses of medical treatments or funeral services. Already in the first year
of its existence the company had 10,000 insured persons, and less than six years after its foundation their
number tripled.
1937
“Ljudska samopomoč” also started a loan cooperative society ‘Ljudska štednja’. The excellent business results
led to the construction of a large building located opposite the railway station in Maribor (today’s address is
Partizanska c. 47), and at the same time it even expanded its activities by opening a branch office in Ljubljana.
1939
The second Maribor insurance company was “Gospodarsko zavarovalna zadruga Drava”, which built its own
large business premises at today’s Ulica talcev 1, and at the same time also opened a branch office in Ljubljana.
April 1941
The assets of the insurance company ‘Ljudska samopomoč’ (People´s Self-Aid) were, due to the German
occupation, transferred to the Südmark insurance company in Graz, Austria.
1945
Amid the ruins of the pre-war insurance agencies and branch offices, two branch offices of “Državni
zavarovalni zavod (DOZ)’” (National Insurance Institution) were established: DOZ – Maribor town, and DOZ –
the surroundings of Maribor.
1962
“Skupna zavarovalnica za okraj Maribor” (a joint insurance company for the Maribor district) was established
due to the restructuring of ‘Državni zavarovalni zavod’ and carried out insurance operations in the then existing
Maribor District.
1968
After becoming independent, the insurance company was entered in the register under the title “Zavarovalnica
Maribor” (Maribor Insurance Company) and it immediately established more business units in Celje, Ljubljana,
Postojna, Piran and Pula.
The end of 1976
Zavarovalnica Sava (Sava Insurance Company) and Zavarovalnica Maribor (Maribor Insurance Company)
merged to form a joint insurance company called Zavarovalnica Triglav (Triglav Insurance Company). On 1
January 1977 a regional office Maribor of the Triglav Insurance Company started to operate, but its operations
B U S I N E S S
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were solely limited to the Podravje and Koroška regions.
The end of 1990
The Maribor regional office split off from the Triglav Insurance Company and started to operate under its
previous name “Zavarovalnica Maribor” (Maribor Insurance Company). It only had two larger business units:
in Slovenj Gradec and Ptuj.
15. December 2000
At the annual General Meetings of the Maribor and Tilia Insurance Companies resolutions on a merger were
adopted. But on the grounds of legal proceedings filed by 17 minor shareholders of Tilia, implementation of the
entry of the new company in the Companies Register was suspended and later revoked at the Annual General
Meetings of both companies in 2002.
2000–2003
Successful business operations of ZM, growth of ZM insurance’s operations, the development of new insurance
products and provision of safety to customers.
2004
On 22. July 2004 Zavarovalnica Maribor was issued with a decision by the Insurance Supervision Agency
(Decision number: 30200-1147/04-24,15,13) stating that ZM is authorised to perform insurance operations.
2005
ZM was granted a licence by the Insurance Supervision Agency to perform insurance operations in Austria.
The loss from previous years was finally covered.
2007
ZM became a pilot company for Slovenian model of the Family-Friendly Company certification in the Young
Mothers/Families Friendly Employment development partnership.
2008
Zavarovalnica Maribor was voted »Best large company in Maribor«, while Drago Cotar was voted »Best
Maribor manager« by the readers of the »Mariborčan« magazine.
1.4
Events that marked the year of 2008 in ZM
…. in the area of human resources:
•
•
•
•
•
•
Marko Planinšec was apointed member of the Management Board of ZM (January);
Maja Krumberger was elected a new member of the Supervisory Board of ZM (February);
mag. Evgen Likl took over the position of executive director of Marketing (January);
Samo Červek became the new director of Legal and Human Resources Service (November);
Legal Service and Human Resources Development Service merged into Legal and Human Resources
Service (November);
Stanislav Rijavec is the new director of the Nova Gorica Business Unit (November).
... in the area of communications and innovation:
•
•
•
•
Launch of radio and TV advertising campaigns for non-life insurance OPA! and unit-linked insurance
PRIZMA Svetovnih 7 / Global 7 (March);
In Trbovlje new premises of ZM Zasavje representative office were opened (April);
In 2008 Zavarovalnica Maribor was again a golden sponsor of 2008 Gazele / Gazelles competition and
the main sponsor of Folkart in the frame of Festival Lent (June);
ZM Mountain Run was successfully organised for the seventh time in a row (July);
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•
•
•
•
•
•
In co-operation with Radio 1, ZM became the sponsor of »Safe journey to school« (Varna pot v šolo)
campaign whose purpose is to remind drivers that school children are back on streets and roads at the
beginning of the new school year and to increase safety of children on their way to school and home
(August);
Due to severe summer hailstorms the policy holders declared claims in the amount of EUR 35 million
(August);
Our customers were offered special, the so-called ECO discounts – premiums reduced by up to 15
per cent for automobile insurance for those drivers who travel less kilometres per insurance year with
their vehicle (September);
ZM sponsored TV series »Brat bratu« (September);
In co-operation with Žurnal media company the Best Junior / Naj junior contest was organised during
which visitors of Žurnal's website could vote for the cutest babies (September);
ZM signed the sponsorship contract with organisers of the 45th Zlata lisica / Golden Fox ski competition
to become its general sponsor (December).
•
... new insurance products that were offered to the market:
•
•
In co-operation with Novo KBM, ZM offered its customers a one-off unit-linked insurance called
PRIZMA Svetovnih 7 / Global 7 which guaranteed a 100 per cent payout of net premium (February);
Policy holders who drove less kilometres than the previous year were offered a special ECO discount
of up to 15 per cent (September).
B U S I N E S S
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1.5 Report by the Management Board
2008 was a ‘turbulent’ year. No one dares predict what 2009 will be like.
2008 was a ‘hard year’ for all insurance companies in the world. Storms that raged practically throughout the
entire year were in the second half of 2008 joined by the financial and economic crisis. Nonetheless, business
operations of Zavarovalnica Maribor in 2008 can be assessed positively. In 2008 we accumulated 7.5 per cent
more premium and, primarily due to storms that affected our insured persons, we paid out 38 per cent more
claims than in 2007.
In 2008 Zavarovalnica Maribor paid out more than five times more claims due to storms than in previous
years. More than EUR 50 million were allocated for repayment of claims incurred in three catastrophic summer
storms.
And precisely this is the reason for existence of insurance companies – to stand by insured persons when
disaster strikes. Moreover, insured persons who pay premiums are our prime concern for the entire duration of
insurance – primarily in terms of indemnity payment (claims, losses) in the event of disaster.
Apart from summer storms, when all our funds, resources and efforts were directed to prompt repayment of
claims, we felt effects of the ‘global financial crisis’ from September 2008 onwards. On account of these effects
and negative trends in capital markets, sales of unit linked insurances decreased. In accordance with market
trends, there was a slight upward trend regarding the sales of traditional mixed life insurances.
Even though the financial crisis already affected Zavarovalnica Maribor in 2008, it has to be said that it did not
‘hit’ it yet as bad as it hit the real sector of Slovenian economy. Nevertheless, we are well prepared for the
impact of the crisis, which will in insurance most likely be felt only in 2009, and we have taken certain
measures to enhance effectiveness in the market, which we continuously adapt to current situation
and to developments of the economic crisis. ‘Financial’ crisis can affect us most when (if) insured persons
– natural or legal persons – are not able to pay insurance premium anymore.
We are aware that insured persons, particularly in times of the financial and economic crisis, need maximum
security. Consequently we started preparing for the changes in 2009 much earlier. However, we did not know
that changes, also with the ‘aid’ of the financial crisis, would affect us so soon.
And it is in times of insecurity, when the era of ‘imagined stability’ has ended and we have thoroughly entered
the era of the economic and financial crisis, that we, as a team, will overcome the troubles coming our way.
With projects prepared in Zavarovalnica Maribor in the past, which we continue also in 2009. As a team.
A team of winners. And we will succeed if we continue to work as a united team of highly committed, loyal
and goal-oriented employees.
Management Board
Drago Cotar, Chairman of the Management Board
Srečko Čebron, Deputy Chairman of the Management Board
Srečko Čarni, Member of the Management Board
David Kastelic, Member of the Management Board
Marko Planinšec, Member of the Management Board
B U S I N E S S
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1.6 Report on the work of the Supervisory Board of ZM d.d. in 2008
In the business year 2008 the Supervisory Board of ZM d. d. consisted of the following members:
Matjaž Kovačič, Chairman (Nova KBM d.d. shareholder's representative), Maja Krumberger Deputy Chairman
(Pozavarovalnica Sava d.d. shareholder's representative), Nataša Prah, member (Pozavarovalnica Sava d.d.
shareholder's representative), Manja Skernišak, member (Nova KBM d.d. shareholder's representative), Edi
Kosi, member (representative of ZM d.d. employees – president of ZM d.d. SSS trade union) and Branko
Tekmec, member (representative of ZM d.d. employees – president of employees' council).
In carrying out its regulatory and statutory authorisations as well as monitoring the management of the
company’s operations, its compliance and efficiency, in 2008 the Supervisory Board held five regular meetings
and three correspondence meetings.
Among others the following activities were carried out in the area of supervision of the management
and compliance of the company’s operations:
In conformity with the business operations projection of ZM d.d. for the period 2002-2011, the Supervisory
Board adopted the business policy and the company’s financial plan for 2008 as well as the BSC controlling
plan (Balanced Scorecard) in ZM for 2008. Regarding the business policy and the financial plan of ZM
d.d., the Supervisory Board instructed the Management Board of ZM to implement the following additional
requirements and goals during the execution of the plan: to retain the market share in gross premium or
respectively to provide arguments for any discrepancies in the event the keeping of the market share would
not simultaneously lead to adequate financial effects for the insurance company, and that by adopting
suitable measures referring to the income and especially to the expenses, the optimum return on equity
is ensured under the given cirmustances. In the frame of the business policy of ZM d.d., meeting and
ensuring the required capital adequacy was defined as as one of the key goals and an investment and
development potential, by means of which ZM d.d. would increase its own available funds and the planned
dividend payments. Realisation of these tasks was marked by the Supervisory Board a major element for
assessment of the company's successfulness.
•
On a regular basis, the Supervisory Board reviewed the reports for the three-month period of the
company’s business operations prepared by expert services of ZM d.d. (in form of comparative data
for the same period of the previous business year) for the following:
•
•
total gross insurance premiums and premiums by individual business units;
volume of policy proceeds and indemnities paid out – in total and by individual branch
offices; in regard to that the Supervisory Board discussed the analysis of expert services on
unfavourable claims ratios as well as on corrective measures to improve the performance in
this segment, and particularly the measures regarding the settlement of catastrophe claims
folowing the storms in the summer months of 2008;
•
It discussed and adopted the Annual Report by the Management Board for the business year 2007
and expressed its opinion on both the report and the report by the appointed auctuary and the Internal
Audit for the business year 2007 as well as drafted resolution proposals and convened the regular
annual General Meeting of ZM d.d. Shareholders.
•
It discusses the Annual Report of the ZM d.d. Group and independent auditor's report (KPMG) on
audited consolidated financial statements for 2007.
•
It discussed periodic accounting statements, whereby it monitored changes in capital adequacy of the
company and based on that issued its consent to the Management Board of ZM to issue subordinate
bonds of the company as well as to eliminate capital inadequacy of the company which ocurred as the
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13
consequence of catastrophe claims.
•
It approved the assessment of capital adequacy of ZM d.d. by the end of 2008; in order to ensure that
the capital adequacy criteria are met on the long-term basis, the Management Board was required to
prepare alternative scenarios for more permanent solution of the capital adequacy issue by the end
of September 2008.
•
It reviewed the structure of ZM's investments in capital markets, and after establishing their risk
exposure was low, a recommendation to the Management Board was adopted with regard to further
management of company's investments.
In the area of internal auditing of the company the Supervisory Board adopted the Report on auditing
performed in 2007 and approved the audit plan of the Internal Audit Service for 2008 as well as the mid-term
audit plan for the 2008 – 2010 period. The Supervisory Board also reviewed and adopted quarterly internal
audit reports for the year 2008.
In the area of human resources the Supervisory Board monitored the ZM d.d. employment policy; it adopted
the report on employment activities in 2007 and approved the guidelines for the ZM d.d. Human resources
plan for 2008. At the meeting in September 2008, Mrs. Maja Krumberger was elected Deputy Chairman of the
Supervisory Board.
In the area of corporation legislation based on alternative scenarios for ensuring permanent meeting of
capital adequacy requirements of ZM d.d., which were prepared by the Management Board of the company,
the Supervisory Board issued a consent to the Management Board of ZM d.d. to conclude a contract on
transfer of participating interest in the company Velebit usluge d.o.o. Zagreb to Sava d.d. reinsurance company
for the purchase price as agreed in the agreement on regulation of relations connected with the participating
interest transfer in the company Velebit usluge d.o.o., which was signed on 26 November 2008.
Matjaž Kovačič, B.Sc. Economics,
Chairman of the Supervisory Board of Zavarovalnica Maribor d.d.
B U S I N E S S
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2.
COMPANY PROFILE
2.1 Company Profile of Zavarovalnica Maribor
Name of the company:
Zavarovalnica Maribor, delniška zavarovalna družba
Shorter name:
Zavarovalnica Maribor d.d.
Cankarjeva ulica 3, 2507 Maribor
Telephone:
Fax:
Free client call centre number:
+386 2/2332 100
+386 2/2332 530
080 19 20
Registration:
26th December 1990,
Comp. Reg. No. 1/03762/00
Maribor Distric Court
Tax number:
Company ID number:
44814631
5063400
Activity classification: 66.030 – non-life insurance
Amount of share capital:
EUR 28,426,180.94
E-mail:
Home page:
[email protected]
www.ZavarovalnicaMaribor.si
2.2 Mission, Vision and Values
Our mission is to be successful in all areas of our operation to thereby meet the expectations of our
owners,employees and the company as a whole. We strive to make profits and by doing this to ensure the further
development of the company and diversification of our services. Further, we want to create entrepreneurial
culture based on participation and which makes the employees feel good so they are happy in their jobs which
guarantees quality. A culture, which promotes team work, enables participation in the operating process as well
as participation in realisation of their mission. The employees must be adequately rewarded and must have
the opportunity to be promoted.
The noble idea that is the underlying principle of our work is to help people in misfortune, which is also
expressed by our slogan: “Whatever may happen, life goes on – with “ZM” there to help you out.”
Our corporate values are represented by care of the environment in which we live and operate – care of
our partners, costumers and our employees whose expert skills, experience and capabilities are helping to
improve the company’s success and create its positive image in the environment.
Our vision is to become a Slovenian insurance company offering the highest quality of services that is judged
by the satisfaction of our customers and a company with loyal and satisfied employees.
B U S I N E S S
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15
2.3 Share capital and shareholders
The share capital of the company amounts to EUR 28,426,180,94. It consists of 6,812,050 ordinary split
shares, which are not divided into classes. All the amounts have been paid in. In 2008 the ownership structure
of the company did not change. ZM does not possess its own shares nor did it perform any trading with them
in 2008. Two members of the Management Board can be found among the company's shareholders; however,
they only own 0.12 per cent of the capital.
0,
80
%
2,
60
0, %
17
%
45
,7
9
%
49
,9
6
%
0,
68
%
4.3.3 Employee Training
2.4
NOVA KBM D.D.
OTHER SLOVENIAN LEGAL ENTITIES
SAVA-RE D.D.
SLOVENIAN INDIVIDUAL SHAREHOLDERS
PROBANKA D.D.
PERUTNINA PTUJ D.D.
Main Activities of the Company and Insurance Products
2.4.1 Life Insurance:
•
•
•
•
•
•
Unit-linked life insurance PRIZMA is a type of life insurance linked to investment funds, for people
aged 14 to 70. It is intended for people who aim at higher yields and at the same time want to have life
insurance in the event of their untimely death;
Unit-linked life insurance PRIZMA FlexPension is a type of insurance linked to the investment funds
managed by DWS Investments. DWS Investments, a member of Deutsche Bank Group, is one of
Europe’s leading asset management company. In the period between 1995 and 2008 the company
won a prestigious award by the independent credit ranking agency Standard & Poor’s 13 times in
succession as the best German mutual fund company;
Investment life insurance PRIZMA Junior is also linked with investment funds. It is a popular choice
for parents who wish to ensure a scholarship or annuity payment to be obtained by their child in a
specific period of time, for instance during university studies, building or buying first home etc.
Scholarship unit linked insurance PRIZMA Junior FlexPension with a capital guarantee linked to the
DWS FlexPension fund. PRIZMA junior FlexPension is the choice of parents who expect a high level
of security in addition to high yields for their child;
One-off unit linked endowment insurance PRIZMA Svetovnih 7 (PRIZMA Global 7) with guaranteed
payment of principal. Insurance can be concluded with a single payment of premium for an insurance
period of 10 years. Insured person receives free accidental death insurance in the amount of paid
premium. It includes investments in 7 promising markets;
One-off unit-linked life insurance PRIZMA FlexPension Plus can be taken out with single premium
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•
•
•
•
•
•
•
•
•
•
payment for the insurance period of 10 years. The policy holder is entitled to a free accident insurance
in the event of death owing to accident in the amount of the paid in premium. Assets are invested into
DWS FlexPension fund of funds;
Life insurance Zlata naložba (Golden Investment) is intended for people between 14 and 65 years of
age;
Life insurance with interval payments allowing the policy owner or the insured to choose the period
of insurance, payment of the agreed shares of the sum insured and the number of interval payments.
Joint life insurance (for 2 people) – the advantage of this type of insurance is the possibility to insure
two people aged between 14 and 65 with a single insurance policy;
Life insurance Modra jesen (Blue/Wise autumn) is intended for the late middle-aged generation and
for pensioners, who due to their age do not fulfill conditions required for the previously mentioned
types of life insurances;
Life insurance Zlati ključ (Golden key) is tailored for children up to 13 years of age;
Annuity insurances – with all the life insurance products for a set period of time the policy proceeds
can be paid to the beneficiary also in the form of annuities;
PRIZMA Riziko življenjsko zavarovanje (Risk Life Insurance) – is aimed at the individuals who wish
to ensure high sums insured while still paying accessible premiums. This insurance is appropriate for
individuals who have already begun saving or due to financial burdens do not wish to save, but would
still like to be insured, as the insurance does not include the saving component;
Through the distribution channel bankassurance also the following products are marketed by ZM in
co-operation with NKBM:
life insurance Življenjski mir (Life peace) and
life insurance Življenje plus (Life plus).
2.4.2 Accident insurance:
•
•
•
•
•
•
•
Accident insurance for people at work and outside work (individual accident insurance of employees,
collective accident insurance, accident insurance of the retired, family, household …);
Accident insurance of people performing special activities (accident insurance for drivers, passengers,
sportsmen, firemen, hunters, fishermen…);
Accident insurance for children and schoolchildren;
Accident insurance of guests, visitors, day-trippers;
Accident insurance for consumers and subscribers;
Other special types of accident insurance (accident insurance for course participants, accident
insurance of holiday-makers, accident insurance of members of mountaineering associations…);
Compulsory insurance for public transport passengers.
2.4.3 Business insurance:
•
•
•
•
•
•
•
•
•
•
•
•
•
Fire insurance of business premises, equipment and buildings;
Business interruption following fire insurance;
Earthquake insurance;
Machinery breakdown insurance;
Business interruption following machinery breakdown;
Insurance of computers;
General liability insurance;
Manufacturer’s liability insurance;
Construction liability insurance;
Construction erection risks insurance;
Burglary insurance;
Professional liability insurance for doctors, architectural designers, supervisors and auditors, board
members, members of supervisory boards and managerial staff of enterprises, auditing companies,
real estate agents, building surveyors, executors etc.;
PPZ – corporate non-life insurance of business premises, equipment and inventory.
B U S I N E S S
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17
2.4.4 Automobile insurance:
•
•
•
•
•
•
•
•
•
•
•
Compulsory automobile insurance (AO) with free of charge legal protection of the driver’s licence;
Comprehensive automobile insurance (Modri kasko);
“No points” Insurance – coverage of costs arising from re-obtaining a driver’s licence;
Driver’s liability insurance (AO-plus);
Roadside assistance insurance – automobile assistance AXA-AO and AXA-AK - provides a 24-hour
free roadside assistance in case of a car accident, mechanical defect of the vehicle or theft and in the
event of physical injuries, in Slovenia as well as in all other countries covered by the green card;
Legal protection due to vehicle usage as an addition to AO insurance;
Partial combinations of comprehensive insurances + J AŠA and E AŠA (windscreen assistance);
Compensation for first damage insurance by losing bonus – AO, AO-plus, comprehensive insurance
Loss of automobile value insurance;
Insurance coverage of costs arising from repairing mechanical and electric vehicle parts;
Accident insurance for drivers, passengers and employees working with or driving motor vehicles.
2.4.5 Cargo insurance:
•
•
•
•
•
•
•
Comprehensive vessel insurance;
Aircraft insurance;
Cargo insurance in national and international transport;
Forwarding agent’s liability insurance in national and international transport;
Carrier’s liability insurance for cargo in road transport;
Liability insurance in river transport, lake transport and sea transport;
Airship owner’s liability insurance against damage caused to third parties.
2.4.6 Agricultural insurance:
•
•
Livestock insurance and
Fruits and field crops insurance.
2.4.7 Credit and other financial insurances
•
•
•
•
•
Consumer credit insurances, housing credits and small business credits;
surety ship insurance;
national and foreign currency forgery insurance;
risk of a lost or stolen electronic payment instrument abuse insurance;
Tourist travel cancellation risk insurance.
2.4.8 House /floor / apartment insurance:
•
•
•
•
•
•
•
•
•
OPA! House insurance;
OPA! Flat insurance;
OPA! Household equipment insurance;
OPA! Personal assistance;
OPA! Legal assistance;
Earthquake insurance;
Burglary insurance;
Glass insurance and
Condominium insurance.
2.4.9 Tourist insurance:
•
•
Tourist insurance with assistence abroad;
Tourist travel cancellation risk insurance.
B U S I N E S S
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18
3.
BUSINESS PERFORMANCE REPORT FOR 2008
3.1
Economic Environment and Insurance Business in 2008
3.1.1 Economic Environment
In 2008 the world economy was faced with some major challenges. The magnitude of the crisis of the real estate
market in the USA was exposed as numerous financial institutions all over the world faced value adjustments
of financial instruments linked to mortgage loans of American households. Strength and soundness of many
reputable financial institutions noticeably declined, and market confidence in financial institutions, particularly
banks, also declined sharply. What at the beginning seemed to be a financial crisis grew to a general economic
crisis, with many comparing its magnitude to the Great Depression at the end of the 1920s and beginning of
the 1930s. Share indexes saw one of the biggest falls in history and consequently additional adjustments also
to other financial instruments in balance sheets of banks and companies were made.
Negative expectations of consumers reduce demand in numerous sectors of economy, less procurements
cause redundancies and reduce the loan repayment ability – both of companies as well as individuals. Fear of
additional cancellations due to potential non-payments of principals from distribution and real sectors caused
aversive attitude of banks towards additional loans, which has a spiral effect on the crisis and only deepens
negative trends.
Governments of numerous countries took different measures to mitigate negative effects of the crisis and
create a basis for resumption of economic cycle; however at the moment of this report’s composition there
were still no visible signs of mitigation of falling trends of relevant world economic indicators.
In comparison with the fourth quarter of 2007, growth of gross domestic product (GDP) decreased in real
terms by 0.8 per cent in the fourth quarter of 2008.
After a strong 5.6 per cent growth in the first half of the year, economic growth noticeably decreased already
in the third quarter (to 3.9 per cent) and went into negative growth in the last quarter.
In the fourth quarter of 2008 final consumption expenditure rose in real terms by 2.0 per cent, indicating a
slightly slower growth than in the first half of the year.
In the fourth quarter of 2008 the number of unemployed persons slightly increased to 45,000 (3 per cent
more than in the third quarter of 2008). Almost six out of ten unemployed persons resided in Eastern Slovenia.
Unemployment rate in this part of the country was 4.8 per cent, whereas it was 3.8 per cent in Western
Slovenia.
The number of registered unemployed persons increased by almost 6 per cent. The rate of registered
unemployment, 6.8 per cent in the fourth quarter of 2008, also increased.
Average monthly gross wage in 2008 amounted to EUR 1,391.43 and it was nominally 8.3 per cent and in
real terms 2.5 per cent higher than average monthly gross wage in 2007.
At the end of the year, general government revenue growth began to slow down. According to available data
on payments of taxes and social security contributions for entire 2008, general government revenue growth
began to slow down gradually from July on after a favourable growth in the first half of the year, and amounted
to 9.8 per cent in the entire year. Slovenian state budget finished 2008 with a negative net position to EU
budget in the amount of EUR 64.7. Due to new estimates of statistical aggregates, total payments into EU
budget in 2008 exceeded payments planned in supplementary budget for 2008 by nearly 10 per cent, and less
than half of the funds (44.4 per cent) were disbursed.
In comparison with the previous month, basic necessities prices decreased in December for the third time in
2008, this time by 0.6 per cent. According to information of the state statistical office, inflation rate amounted
B U S I N E S S
R E P O R T
19
to 2.1 per cent in 2008. Average annual inflation rate was 5.7 per cent. In December year-on-year inflation
rate decreased by a further percentage point and amounted to 2.1 per cent.
Statistical office recorded price reductions in communications (by 2.2 per cent), apartments (by 2.1 per
cent), transportation (by 1.9 per cent), clothing and shoes (by 1.7 per cent), food and soft drinks and catering
and accommodation services (by 0.2 per cent). In 2008 catering and accommodation services saw the
biggest increase in prices (by 7.7 per cent). They were followed by healthcare (by 6.7 per cent), furnishings
(by 6.5 per cent), education (by 6.1 per cent), clothing and shoes (by 4.8 per cent), food and soft drinks (by
3.8 per cent) and recreation and culture (by 3.6 per cent).
3.1.2 Trends Regarding Insurance Use in Slovenia in 2008
According to data from the research »Trends in the field of insurance use from 2001 to 2008« (Gfk financial
researches, Insurance monitor, comparison 2001-2008, June 2008) it is possible to make a general summary on
the basis of results of the 2008 measurement and state that in 2008 the share of recognition fell comparatively
for all insurance companies. Considering the results of this year’s measurement, we can say that worse
indicators are noticeable primarily regarding main insurance companies; however Zavarovalnica Maribor, a
representative of larger insurance companies, is excluded from this as it recorded either improvements or its
results remained at comparable level to the previous year.
In 2008 significance of the following factors, important when deciding for new insurance, grew: low insurance
prices, easy access due to a large network of representatives and a wide selection of different types of
insurance on offer. In contrast, in comparison with 2007 significance of factors such as long-standing market
presence/experience and reliable and trustworthy insurance company declined the most.
When deciding for life insurance, respondents gave the biggest emphasis on economic stability and security
of insurance company, and this was followed by the following factors: prompt claims payments, good ratio
between the price and quality of service, and reliable and trustworthy insurance company. In comparison with
the previous year, significance of long-standing market presence of insurance company declined the most
when deciding for life insurance. At this measurement, when deciding for non-life insurance the significance
of a good ratio between the price and quality of service increased the most. Significance of economic stability
and security of insurance company declined the most; it was followed by long-standing market presence/
experience and reliable and trustworthy insurance company. Significance of other factors remained relatively
unchanged.
In terms of property insurance, the share of compulsory car insurance use, now at the 2002 to 2005 level,
continued to increase. It was followed by comprehensive insurance, which had reached the highest level
of use this year, and insurance of objects/equipment in apartment and tourist insurances. Prospects
regarding intentions to conclude individual personal insurances in the next two years were not too bright.
Negative trend, similarly to the previous year, was the most prominent with regard to annuity insurance and
voluntary (supplementary) pension insurance and slightly less with regard to accident insurance and work
accident insurance. Negative trend was also noticeable in intentions to conclude property insurances in
the next two years. In terms of the trend of intentions to conclude new property insurances, immovable and
movable property insurances stand out the most.
B U S I N E S S
R E P O R T
20
3.2
Financial Situation and Financial Result of the Company in 2008
3.2.1 Financial Situation of the Company
The Company’s financial position and financial result in 2008 were marked by some developments and events
that had not occurred in previous years or had not occurred with such intensity as in the current year. These
include:
•
Catastrophe losses after storms, which affected our insured persons several times and particularly on
15 August, devastated domicile area of the Podravje region. Total claims arising from these events
are estimated at EUR 53 million and majority have been paid out already. Loss accounted for in nonlife insurance claims exceeded planned values by 34 per cent and the claims in 2007 by 45 per cent.
•
World financial crisis affecting domestic economic environment, reflected in fair (quoted) price of
equity securities in the Company’s portfolio. Impairment of securities, of which the price fell more than
40 per cent below purchase price, was made through financial result. Total value of these impairments
amounted to EUR 9.4 million, while expenses were entirely tax non-recognisable.
•
Non-current liabilities to unit linked insurance policy holders for the period 2007-2008 were revalued
and expenses for mathematical provisions in 2008 increased by EUR 4.1 million at simultaneous
distinguishing of insurance acquisition costs. Adjustments were done on the basis of the requirement
imposed during inspection by the Insurance Supervision Agency and in the sense of IAS 2008
represented correction of an error from the previous period.
•
Some structured securities from the group of investments intended for sale were reclassified to the
group with valuation through profit or loss account. Debit to the financial result for the current year
amounted to EUR 1.4 million.
•
Interests in a dependent entity in Croatia were sold and thus the value of financial investments credited
to non-current assets held for sale was reduced by approximately EUR 9 million.
Good reinsurance policy and continuous selection of the most appropriate type of reinsurance for protection
against catastrophic losses severely mitigated the effect events described above had on the financial result.
Slowed down trends of operating expenses with regard to the growth of net premium and conservative
investment policy also contributed to appropriate financial result.
The Company operated with a stable portfolio of insurance contracts, which had shown growth – although
minimal – in the Slovenian insurance market for the past few years. At the end of the year it also had a big
enough amount of capital at its disposal to ensure compliance with capital adequacy requirements.
The Company used certified methods of calculating technical provisions and they showed adequate amounts
of provisions. Equalisation provisions were created only in the credit insurance class, whereas provisions for
unexpired perils appeared more often.
Balance sheet total amounted to EUR 634.9 million and increased by 5.2 per cent this year. There were some
atypical trends in terms of growth and structure caused by events indicated above. Performed impairment
of investments reduced reserves for the change of fair value of investments to 0.7 per cent of the balance
sheet total (3.5 per cent in the previous year) at index 21. Consequently the share of capital in resources
decreased by 2.8 per cent in comparison with 2007 and amounted to 8.6 per cent. In this period gross technical
provisions increased by 6.8 per cent and liabilities arising from insurance transactions increased by 17.3 per
cent. Subordinated bonds intended for improvement of capital adequacy represented 3.1 per cent of fund
resources, however the first bond emission in the amount of EUR 12.8 million will become payable in May
2009.
B U S I N E S S
R E P O R T
21
Financial investments represented the biggest share of the Company’s assets, namely 72.9 per cent. Investment
property was only a marginal item (0.1 per cent). Assets of reinsurance companies and coinsurers reached
10.8 percent of the balance sheet total at growth index 125. The high index was generated by provisions for
claims outstanding, which still include a substantial share of claims from storms, which were fully reinsured.
Volume of receivables from insured persons was lower than in 2007. This was a consequence of active
recovery as cash flow from premiums was higher than the newly arisen receivables in 2008. Non-current assets
available for sale were significantly higher among assets; however, this was an extraordinary occurrence due
to disposal of the interest in a dependent entity in Croatia. The share of fixed assets accounting value was
constantly at around three per cent.
The ratio between investments and provisions was equal to the previous year and showed an investment
surplus of two per cent at company level. The consequence of error correction regarding the unit linked
insurance long-term business fund was that it was not covered temporarily; however this was eliminated
immediately after detection of the error.
Balance sheet items in terms of plan and previous year with adjustments are the following:
Items in EUR
As of 31.12.2008
Planned for 2008
As of 31.12.2007
INTANGIBLE ASSETS and DČR
10,957,977
5,155,000
6,509,487
LAND, BUILDINGS AND EQUIPMENT
13,069,824
12,083,622
13,430,181
774,591
818,674
858,401
0
10,505,392
9,362,547
463,116,863
502,081,472
461,186,234
REINSURERS' ASSETS
68,525,279
51,611,287
54,611,601
RECEIVABLES FROM INSURANCE OPERATIONS
66,308,045
65,934,122
53,812,793
OTHER ASSETS
2,087,246
2,465,000
3,380,807
NON-CURRENT ASSETS HELD FOR SALE
9,451,834
0
74,605
648,607
400,000
587,505
634,940,266
651,054,569
603,814,160
As of 31.12.2008
Planned for 2008
As of 31.12.2007
CAPITAL
54,973,434
89,263,326
69,008,404
SUBORDINATED LIABILITIES
19,833,765
12,441,000
12,093,800
507,718,145
496,964,709
475,030,651
PROVISIONS FOR OTHER LIABILITIES AND EXPENSES
3,097,830
2,832,543
2,936,356
LIABILITIES FROM DIRECT INSURANCE OPERATIONS
29,462,695
32,536,754
25,123,360
847,854
6,805,000
6,107,811
1,743,146
1,370,200
1,215,945
17,263,397
8,841,037
12,297,832
634,940,266
651,054,569
603,814,160
INVESTMENT REAL ESTATE
INVESTMENT IN DEPEN. AND ASSOC. UNDERTAKINGS
FINANCIAL INVESTMENTS
CASH AND CASH EQUIVALENTS
TOTAL ASSETS
Items in EUR
LIABILITIES FROM INSURANCE CONTRACTS
DEFERRED LIABILITIES FOR TAX
LIABILITIES FOR CORPORATE INCOME TAX
OTHER LIABILITIES
TOTAL LIABILITIES AND CAPITAL
B U S I N E S S
R E P O R T
22
Illustration of the Company’s assets shows prevalence of investments and their value being lower than
planned. During planning, such significant fall of value of shares that occurred was not anticipated.
Shortfall of amounts of reserves for the change of fair value of investments and generated net profit in the
current year is evident in the capital share.
COMPANY'S ASSET STRUCTURE
700
CASH AND CASH EQUIVALENTS (od
zgoraj navzdol)
600
NON-CURRENT ASSETS HELD FOR
SALE
OTHER RECEIVABLES
500
400
RECEIVABLES FROM INSURANCE
OPERATIONS
300
REINSURERS' ASSETS
200
100
LAND, BUILDINGS, EQUIPMENT
0
As of 31. 12. 2008
Planned for 2008
INTANGIBLE ASSETS
As of 31. 12. 2007
CAPITAL AND LIABILITIES STRUCTURE
700
OTHER LIABILITIES
600
TAXES
500
400
LIABILITIES FROM INSURANCE
OPERATIONS
300
PROVISIONS FOR OTHER LIABILITIES AND
EXPENSES
200
LIABILITIES FROM INSURANCE
CONTRACTS
100
0
SUBORDINATE LIABILITIES
As of 31. 12. 2008 Planned for 2008 As of 31. 12. 2007
B U S I N E S S
R E P O R T
23
CAPITAL
3.2.2 Financial Result of the Company
In 2008 gross non-life insurance premium in the amount of EUR 185.9 million was accumulated and thus the
plan was exceeded by EUR 1.48 million. Gross premium was achieved through standard sales channels,
which encompass a network of universal insurance agents, insurance agencies and insurance brokers. The
premium was 0.8 per cent higher than planned and 8.9 per cent higher than in 2007.
Planned premium was exceeded to the greatest extent in insurance class land motor vehicles insurance,
where the plan was exceeded by EUR 2.8 million, and in insurance class other indemnity insurance, where
the plan was exceeded by EUR 1.8 million. We fell behind the plan to the greatest extent in insurance class
third party liability insurance for motor vehicles, namely by EUR 2.9 million, and in insurance class insurance
against fire and natural forces, where we fell behind the plan by EUR 0.5 million.
Annual realised gross life insurance premium amounted to EUR 66 million, which was 3.6 per cent or EUR
2.3 million more than in the previous year. Majority of newly concluded life insurances in the market and in
Zavarovalnica Maribor are unit linked insurances. On account of loss of confidence of insured persons in
events on financial markets, gross premium also fell behind the planned by 5 per cent.
In 2008 settled non-life insurance claims amounted to EUR 157.9 million, EUR 49.3 million more than in the
same period last year and EUR 40 million more than planned. Planned claims were exceeded in insurance
classes which cover claims payments for hail. A large increase was noticeable in claims arising from other
indemnity insurance, where 180 per cent more claims were paid out than in the previous year and 176 per cent
more than planned. With regard to insurance class insurance against fire and natural forces, 150 per cent more
claims were paid out than in the previous year and 115 per cent more than planned; with regard to insurance
class land motor vehicles insurance, 30 per cent more claims were paid out than in the previous year and 20
per cent more than planned. Consequences of storms are the reason that simple claim ratio of the Company
for 2008 amounted to 0.85 and was thus worse than Slovenian average (0.75) and significantly worse than the
one in the previous year, which was similar to the average of several years (0.64 in the Company and 0.67 in
all domestic insurance companies).
In life insurance class, EUR 33 million of claims were paid out in 2008, 10.9 per cent more than in the
previous year and 10.7 per cent more than planned. Paid out endowments with high revenue capitalisation
from previous years had the biggest effect on the increase of payments in 2008. The other reason was
enlarged scope of surrenders due to unit linked life insurance policies special offers.
In 2008, 24 per cent of operating expenses in gross premium were reached, which was less than in the
same period in 2007 when 25.3 per cent were reached. Savings regarding labour costs, which amounted
to 11.7 per cent in gross premium, 0.6 per cent less than planned and 0.9 per cent less than in the previous
year, were significant. The biggest increase of expenses was registered in the field of non-life insurance
acquisition expenses, where EUR 2.063 million or 22 per cent more than in 2007 were used. The reason
for such increase lies also in the structure of sales channels as the share of business transactions through
brokers is on the rise.
In 2008 profit before tax was realised in the amount of EUR 6,031,827. Of this profit in the field of life
insurances amounted to EUR 5,198,779 and profit in the field of non-life insurances amounted to EUR
833,048. Net profit in 2008 amounted to EUR 2,791,783.
B U S I N E S S
R E P O R T
24
Achieved figures for fundamental technical-financial items of the company compared to the plan for 2008 and
the 2007 figures:
From 1. 1. to
31.12.2008
Items in EUR
EARNED PREMIUMS, NET OF REINSURANCE
načrt 2008
From 1. 1. to
31.12.2007
202,352,807
201,705,978
184,150,652
709,824
125,450
2,650,298
2,404,872
2,638,919
2,279,289
60,517,819
66,916,765
59,190,520
RISK PREMIUM
140,139,940
132,275,743
125,331,142
NET CLAIMS INCURRED
121,436,607
111,766,598
110,925,237
13,390,170
29,423,842
42,821,221
5,313,163
-8,914,697
-28,415,317
INVESTMENT INCOME
21,666,371
16,809,361
38,930,750
NVESTMENT CHARGES
21,642,744
224
1,650,072
23,628
16,809,137
37,280,678
5,336,791
7,894,440
8,865,361
252,858
908,457
154,803
Other regular charges
3,076,995
1,857,375
5,308,042
Financial income
5,457,787
2,455,857
3,939,881
Financial expenses
1,938,614
1,447,983
1,339,889
695,036
58,956
-2,553,247
PROFIT/LOSS OF THE ACCOUNTING PERIOD
6,031,827
7,953,396
6,312,114
Taxes
3,240,044
1,953,133
2,156,782
Net profit
2,791,783
6,000,264
4,155,332
OTHER NET TECHNICAL INCOME
OTHER NET TECHNICAL CHARGES
NET OPERATING EXPENSES
CHANGE IN OTHER NET TECHN. PROVISIONS
TECHNICAL RESULT
IMPACT OF INVESTMENTS OF TECHNICAL PROVISIONS
TECHNICAL IMPACT WITH INVESTMENT RESULT
Income from other services
Other and financial income/expenses
Planned and achieved items in technical result differ in claims ratio. The biggest value discrepancy arose in
net claims incurred. Effect of investments due to mentioned investment impairments, classified in the group
intended for sale, was unfavourable and EUR 10 million of expenses were incurred on unit linked insurance
portfolio, which is mainly composed of mutual funds. Disproportionate amount of taxes on expenses is a
consequence of the fact that impairments of investments are not tax recognisable. Deferred taxes were not
calculated for these expenses.
When compiling the annual report, provisions of Article 64 and 230 of the Companies Act and provisions of the
Insurance Act in parts referring to equalisation provisions were complied with. Creation of the latter is statutory,
however under IFRS they are not considered expenses of the current year but part of reserves. Therefore net
profit was first used to create equalisation reserves and a part of it was directed to statutory reserves.
B U S I N E S S
R E P O R T
25
Technical structure of profit or loss (in EUR milion)
2008
-134,8
Planned for 2008
-141,2
2007
-2,6
Risk premium
140,1
0,7
132,3
-153,7
125,3
Indemnities and provisions
Investment effects
16,8
37,3
Other income/expenses
Profit/loss achieved by an individual official insurance class is represented in the table below:
Net
insurance
income
Net
insurance
expenses
Change in
technical
provisions
15,987
-5,552
-3
-6,509
-253
3,671
0
0
0
0
0
0
Land motor vehicles insurance
37,646
-27,852
773
-12,023
-352
-1,808
Railway rolling stock insurance
0
0
0
0
0
0
Aircraft insurance
72
-9
0
-53
-3
6
Vessel insurance
239
-187
-4
-87
-1
-40
Goods in transit insurance
1,009
-424
-31
-997
-5
-448
Insurance against fire and natural
forces
5,249
-3,423
8
-3,200
-14
-1,380
Other damage to property
insurance
19,560
-18,926
-898
-8,695
23
-8,936
Motor third-party liability
insurance
55,230
-32,234
47
-12,110
-143
10,790
Aircraft liability insurance
34
0
0
-53
-3
-21
Vessel liability insurance
133
-84
0
-55
-2
-7
Other liability insurance
4,847
-4,707
27
-1,131
-45
-1,009
Credit insurance
2,037
585
-201
-1,044
981
2,359
78
-1,071
-979
-95
-41
-2,108
420
-115
-3
-197
-6
100
-203
-4
0
-147
-4
-357
379
-4
0
-340
-14
21
Life insurance
51,293
-38,421
-512
-8,602
82
3,839
Life insurance with investment risk
30,664
-13,058
-11,615
-5,177
545
1,359
Insurance class
(in EUR 000)
Accident insurance
Voluntary health insurance
Suretyship insurance
Miscellaneous financial loss
insurance
Legal expense insurance
Assistance insurance
B U S I N E S S
R E P O R T
26
Operating
expenses
Other
income/
expenses
Gross
profit/loss
3.2.3 Investment Policy
Life insurance
Share of government debt securities in investment structure of the life insurance long-term business fund
increased by a few percentage points in 2008. Apart from the Republic of Slovenia bonds, bonds of some other
European countries with high credit rating were also included in the portfolio. Share of this investment type thus
reached a total of 61.1 per cent of all invested assets in the portfolio. 23.3 per cent of all assets were invested
in non-government bonds. Assets invested in bank deposits reached 8.5 per cent of all invested assets.
Share of investments in equity securities reached 7.1 per cent. Investment portfolio of the life insurance longterm business fund included real estate in 2007, however at the end of 2008 it reached only 0.02 of all invested
assets. The reason for inclusion of real estate was conclusion of annuity insurance.
Investment structure – life insurance long-term business fund (in percentage):
100%
80%
60%
13,0
7,1
16,0
23,3
22,6
20,0
6,7
10,0
8,5
Equity securities
Debt securities
Bank deposits
40%
57,7
61,1
54,0
Securities of RS and foreign
20%
0%
31.12.2007
Planned for 2008
31.12.2008
Non-life Insurance
In 2008 the share of government bonds in investment structure of the non-life insurance long-term business
fund increased slightly so that it reached 45.1 per cent of all invested assets. In comparison with the previous
year, the share of non-government bonds somewhat decreased. Share of investments in bank deposits
decreased by slightly more than two percentage points.
Share of investments in equity securities reached 3.5 per cent of total investment portfolio. Investments in
mortgage loans and other loans made before 13 November 1994 decreased and their total share reached 1
per cent of total portfolio.
B U S I N E S S
R E P O R T
27
Investment structure – non-life insurance long-term business fund (in percentage):
100%
80%
3,3
3,7
3,5
34,3
33,0
33,8
Equity securities
60%
18,9
16,6
21,0
Debt securities
Bank deposits
Securities of RS and foreign
40%
Loans
20%
0%
42,1
41,0
45,1
1,4
1,3
1,0
31.12.2007
Planned for 2008
31.12.2008
3.2.4 Market Share movement
Movement of total market share of Slovenian insurance companies between 2006 in 2008:
40,0%
35,0%
2006
30,0%
2007
2008
25,0%
20,0%
15,0%
10,0%
5,0%
P
SO
SI
D
W
E
VI
TA
B
NL
G
RA
TR
TI
LI
A
G
IG
EN
LA
ER
V
AL
ZD
I
RA
VS
TV
EN
A
SL
M
O
ER
VE
KU
NI
R
CA
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JE
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E
D
KA
V
O
VE
NI
CA
*
VZ
AJ
EM
NA
IG
LA
SL
TR
RI
AT
IC
AD
ZA
VA
RO
VA
L
NC
IA
M
AR
IB
O
R
0,0%
In 2008 EUR 2,019 million of total gross premium was accumulated, which was 6.6 per cent more than in 2007.
Non-life insurance premium was higher by 7.1 per cent and life insurance premium increased by 5.5 per cent.
Market share of Zavarovalnica Maribor increased from 12.37 per cent in 2007 to 12.47 per cent in 2008. In
the non-life insurance field, market share of Zavarovalnica Maribor increased from 13.3 to 13.5 per cent,
whereas market share in the life insurance field decreased from 10.5 to 10.3 per cent.
B U S I N E S S
R E P O R T
28
3.3
Performance of more Important Insurance Classes in 2008
Automobile insurance
Gross premiums
Gross indemnities
Claims ratio
No. of insurances
2007
43,072
32,334
75
145,305
2008
49,788
41,993
84
164,516
Index
116
130
Gross premiums
Gross indemnities
Claims ratio
No. of insurances
2007
64,613
33,844
52
415,713
2008
66,258
32,766
49
444,715
Index
103
97
Motor third-party liability insurance
113
107
In the automobile insurance field EUR 127.6 million of premium was accumulated, falling behind the plan by
0.3 per cent; in comparison with the previous year the growth was 7.4 per cent.
With regard to motor third party liability insurances (AO), 2.6 per cent more premium was accumulated than
in the same period of the previous year, falling behind the plan by 4.2 per cent. The number of insurances
increased in comparison with the previous year by 9.3 per cent. The reason for falling behind the planned
premium lies in falling prices of insurances in the market.
Strong growth of premium in the comprehensive insurance field continued and the premium accumulated
in 2008 exceeded the one in the previous year by 15.6 per cent, whereas the plan was exceeded by 6 per
cent. The number of insurances also increased and reached a growth of 13.2 per cent in comparison with the
previous year, exceeding the planned number by 4.4 per cent.
There was a 3.4 per cent growth regarding motor third party liability insurances plus (AO+) in comparison with
the previous year, falling behind the plan by 3 per cent. At the same time a 10.5 per cent growth of the number
of insurances was achieved.
Activities carried out:
•
•
•
•
•
•
•
introduction of a special ECO discount, an innovation on the Slovenian insurance market;
expansion of AXA assistance coverage;
regulation and new classes with regard to excess for private vehicles:
completion of a new system for conclusion of car insurances in the business sector;
special offer for insurance of motorcycles and collaboration with different motorcycle clubs;
acquisition of documents regarding car insurances from competitors (price lists, conditions, …);
in collaboration with IT and Organisation Sector, acquisition and processing of data on clients that left
Zavarovalnica Maribor and visits of these clients.
Accident insurance
Gross
premiums
Gross
indemnities
Claims ratio
No. of
insurances
No. of policy
holders
2007
18,780
6,857
37
366,304
663,315
2008
19,780
7,252
37
399,602
690,418
Index
105
106
109
104
Accident insurance
B U S I N E S S
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29
In 2008 gross premium of accident insurances reached a 7.2 per cent growth in comparison with the same
period of the previous year and exceeded planned growth by 2.9 per cent.
Activities regarding conclusion of insurance in 2008:
• special offer for accident insurance of children »loyal insured persons« starting on 30.6.2009 and
ending on 30.6.2009 was conducted in May;
• »traditional school campaign«, where the start and end of insurance are tied to the start and end
of the school and academic year, was conducted from August until the end of October.
In 2008, the area of development and monitoring of claims settlement arising from personal
insurances saw:
•
•
•
•
•
completion of IT solution for notification of insured persons regarding payments of surrenders,
endowments and payments of first insurance premium upon taking out insurance;
training of liquidators on knee injuries and illnesses;
elimination of discrepancies by monitoring claims settlements in business units and adoption of
measures to improve claims settlement process;
organisation of a meeting of all doctors working for Zavarovalnica Maribor with the purpose of
standardisation of their work and use of harmonized forms;
start of active solving of payments arising from unit linked insurances and to this end creation of
software support for calculation of property value together with IT;
Non-life Insurance
Gross
premiums
Gross
indemnities
Claims ratio
No. of
insurances
2007
8,663
7,074
82
33,879
2008
9,738
17,661
181
35,434
Index
112
250
Gross
premiums
Gross
indemnities
Claims ratio
No. of
insurances
2007
23,328
15,342
66
141,341
2008
27,011
42,967
159
151,575
Index
116
280
Insurance against fire and natural forces
Other damage to property insurance
105
107
In 2008 there was a 20 per cent growth of premium in comparison with the previous year for non-life insurance
policies OPA! and a 7 per cent growth of the number of insurances. It is significant that sales of this insurance
type are increasing primarily in non-domicile areas.
In January 2008 product IPZ – OPA was improved so that a new added value Assistance At Home was added.
This product is still the best on Slovenian insurance market. This was proven by a 7 per cent growth of the
number of insurances in 2008, which had been by far the biggest growth in recent years.
Premium of the entire group of non-life insurances “Premoženje civil” was 14.4 per cent higher in 2008 than in
the same period of the previous year and 2.4 per cent higher than planned.
The following new features, changes and amendments were introduced in the non-life insurance field
in 2008:
•
expansion of OPA! insurance – addition of assistance service ˝Assistance At Home˝, which offers
insured persons the possibility of rapid assistance to try to prevent further damage and possibility of
B U S I N E S S
R E P O R T
30
•
•
•
•
•
•
•
•
complete damage;
recast of insurance base for liability insurance for members of management boards and
supervisory boards – expansion of coverage and adjustment to coverages offered in other EU
countries; preparation of offer for insurance of individual managers;
preparation of insurance base for travel inconvenience insurance and shop liability insurance;
development of warranty insurance – extension of warranty;
recast of insurance base for equipment breakage coverage as well as IT support for conclusion of
insurance;
introduction of a system for premium refund due to favourable claims ratio for business non-life
insurances (˝No claims bonus˝);
analysis of the effect of catastrophic summer storms on non-life insurances;
recast of insurance base for professional indemnity insurance for lawyers;
professional support and organisation of professional workshops for insurance sales.
In 2008 we witnessed catastrophic summer storms, which had devastating consequences for property of our
insured persons and thus indirectly also for us. Hailstorms caused great damage both on immovable as well
as movable property of our customers and everyone affected by storms.
In Zavarovalnca Maribor we try to boost demand for our insurances with different sales promotion instruments
and thus expand the scope of sales in a currently very competitive insurance environment. We continued using
the sales channels in place (internet, call centre …) and systematically determined market coverage of our
policies, on the basis of which market strategy for individual area was prepared. In 2009 intensive professional
training of sales personnel in the field of non-life insurances will continue.
In 2008 the field of agricultural insurances saw:
•
•
•
intensive use of computer technology in conclusion of insurances with government subsidy;
preparation of new, stricter conditions for TO KS 02/08 insurance;
change of conditions for insurance of dogs and cats.
Transport insurance
Gross premiums
Gross indemnities
Claims ratio
No. of insurances
2007
1,238
404
33
720
2008
1,352
888
66
775
109
220
Indeks
108
Changes and new features in the field of transport insurances in 2008 referred mainly to the so-called ˝IT
support˝ in the light of implementation of new IT support in conclusion of aircraft insurances (Win ZMP) and
establishment of aircraft register at the Slovenian Insurance Association. Recast of insurance bases for third
party liability insurance for carriers in road transport increased participation of insured persons in case of loss
events.
Credit insurance
Credit insurance
Gross premiums
Gross indemnities
Claims ratio
No. of insurances
2007
2,701
2,481
92
50,436
2008
2,224
2,042
92
39,652
Index
82
82
79
B U S I N E S S
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31
Liability insurance
General liability insurance
Gross premiums
Gross indemnities
Claims ratio
No. of insurances
2007
5,345
5,190
97
8,739
2008
6,100
6,042
99
9,632
Index
114
116
110
Reached insurance gross premium exceeded last year’s by 14.3 per cent.
It was established with regard to OPA! insurance – liability arising from house and land property and liability
of private owner – that technical result had been worsening, so certain changes were adopted already at the
end of 2007, namely:
• cancellation of policy excess for material damage as it did not have the desired effect;
• increase of policy excess for non-material damage from EUR 75 to EUR 200;
• for claims which are a consequence of injuries, defined as muscle strain, sprain, dislocation, fissure,
abrasion, stab, cut or contusion of any part of the body, the sum insured after a loss event amounts to EUR
200.
All changes described above had positive repercussions on the result already in 2008.
In 2008 new insurance bases were prepared also for:
• liability insurance for members of management boards, supervisory boards and managements of
companies;
• liability insurance for managers.
Gross premiums
Gross indemnities
Claims ratio
No. of insurances
2007
1,161
333
29
249,219
2008
1,450
369
25
394,584
Index
125
111
158
Life insurance
Gross premiums
Gross
indemnities
Claims ratio
No. of
insurances
No. of policy
holders
2007
39,345
28,899
73
91,454
93,896
2008
36,883
31,664
86
90,525
93,401
Index
94
110
99
99 Gross premiums
Gross
indemnities
Claims ratio
No. of
insurances
No. of policy
holders
2007
24,329
848
3
32,614
27,334
2008
29,094
1,707
6
46,006
46,006
Index
120
201
141
168 Life insurance
Investment fund unit
linked life insurance
B U S I N E S S
R E P O R T
32
In the field of life insurances EUR 65,977 million of gross premium was accumulated in 2008, which was 94.9
per cent of the planned gross premium, falling behind the planned premium by EUR 3.5 million. Gross life
insurance premium was 3.6 per cent higher than in 2007.
In Zavarovalnica Maribor we sell life insurances with the aid of permanently employed representatives,
agencies and private entrepreneurs. Insurances are concluded also at branch offices, representative offices
and agencies. Mixed life insurances and unit linked insurances are sold via the same sales channels in the
entire Slovenian market. The latter are a sales hit regardless of developments in financial markets.
Due to effects of the financial crisis and negative trends in capital markets, sales of unit linked life insurances
(PRIZMA, PRIZMA FlexPension, PRIZMA Junior and PRIZMA FlexPension Junior) decreased. Overall result
reflected also personnel changes in some agencies specialised for sales of life insurances. Sales of traditional
mixed life insurance were slightly on the rise, which corresponded with market trends. Among traditional
life insurances, sales of Modra jesen (whole life insurance) increased dramatically and 19.8 per cent more
insurances were sold than in 2007.
Carried out activities:
•
•
•
•
•
•
•
•
•
3.4
advertising life insurances on radios, in print media and on websites;
new insurance offers: ZM PRIZMA Riziko life insurance, ZM Zajamčeni fund / ZM Guaranteed fund, two
products of single-premium unit linked life insurance;
improvement/updating of some insurances classes (ZM Zajamčeni fund, NFD funds, 19 serious illnesses);
realisation of projects regarding development of new and updating of existing life insurances;
realisation of three sales campaigns for one-off unit linked life insurances;
realisation of a new workshop for training of representatives in the field of soft skills ‘Consultancy Sales 2’;
acquisition of new agencies for sales of life insurances;
execution of promotional activities in shopping centres and at larger public events (festivals, fairs);
working on the project of redesign of corporate identity and sales materials for sales of life insurances.
Business Partners, Business Network and Customer Relations
ZM is a universal insurance company offering all classes of insurance to all structures of its customers. Our
efforts are focused on providing quality and complete range of products to satisfy the needs and requirements
of our customers and business partners. Besides the tailor-made insurance products, we are devoted to
constant improving of the quality of our service, especially in terms of consultancy and after sales services.
Our task does not end with expanding our customer base, we want to be a trustworthy partner for our clients.
When designing new and improving the existing products we consider our customers' wishes, needs and
expectations. We are aware that in order to be able to tailor our services to the wishes and needs of our
customers, we must first of all understand and know them. We would like to get to know their goals and habits,
their opinions and their way of thinking. Their hobbies and pleasures, their clothing style, their lifestyle and how
they spend their free time etc. When dealing with our customers we strive to act as a trustworthy insurance
company – a company whose expertise, propriety and reliability our customers trust in.
Corporate Business
Corporate operations are mainly the responsibility of our sales personnel (agencies, sole proprietors/
entrepreneurs and/or brokers) assisted by business administrators who advise the sales personnel as well as
our customers. The insurance sales personnel employed at ZM are in charge of marketing of more demanding
insurance products and servicing more important business partners.
An important role in the company’s sales is held by insurance brokers who are authorised by individual
companies for concluding insurance contracts.
B U S I N E S S
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33
Retail Business
Our full-time agents, agencies and sole proprietors are responsible for sales activities targeted at private
individuals. Each sales person has a direct superior responsible for taking care of the appropriate training of
their staff. If required, the head visits the customer together with the agent to explain certain insurance classes.
In 2008 there were 232 full-time agents on Zavarovalnica Maribor payroll who with their excellent knowledge
of insurance products and sales methods contribute importantly to better recognition of Zavarovalnica Maribor
among its customers. Besides full-time agents the ZM sales network consists of agencies and sole proprietors/
entrepreneurs (211 in total), brokers (44) and special sales points: automobile sales points (177) and tourist
agencies (60).
Business Partners
The company’s strategic business partners are: Pozavarovalnica Sava (Sava reinsurance company), Arag,
AXA, KBM Infond DZU, Ilirika DZU, Publikum PDU and DWS Investments from the Deutsche Bank Group.
In the field of insurance products sales our key strategic partners are companies offering insurance agency
and brokerage services. ZM has been co-operating or has entered into co-operation agreements with 211
agencies. On a contract basis we also co-operate with 237 so called special sales points (car sales points,
tourist agencies …). Moreover, we work closely (brokerage contract) with with 44 brokerage agencies.
In claims settlement the key role is played by contractual partnerships with authorised car repair shops that
perform claims assessments and casco automobile insurance repairs for ZM exclusively over the QuickCheck
on-line system (on line assessments). In 2008 ZM had contractual agreements with 97 authorised services
from all over Slovenia, through which about 11,800 claims were assessed, processed and paid.
Business Units
ZM covers the Slovenian territory through ten business units, which are responsible for both concluding
insurance contracts and claims handling.
Structure of gross premiums collected by business units in 2008
120
100
80
60
40
20
0
BU
LJUBLJANA
BU
MARIBOR
BU CELJE
BU KRANJ
BU NOVA
GORICA
LIFE INSURANCE
BU KOBUR
BU
SLOVENJ
GRADEC
BU NOVO
MESTO
NON-LIFE INSURANCE
B U S I N E S S
R E P O R T
34
BU
LJUTOMER
BU
MURSKA
SOBOTA
3.5
Information Technology and Investments
3.5.1 Information Technology and its Development
In areas covered by IT Sector the following key activities were carried out in 2008:
Area of insurance process IT support:
•
•
•
•
With regard to conclusion of insurances, a number of amendments and changes, which enabled
comprehensive integration and cooperation of the sales system with the background part of IT system,
were implemented into the sales system. These activities included e.g. implementation of fully updated
IT support for conclusion of business car insurances, as well as integration of IT support for processing
of insurances concluded at automobile repair shops, which conduct roadworthiness tests, in the
uniform background system;
A number of technological and organisational improvements, with which we tried to improve the quality
of the database and minimise or resolve problems arising in this field, were carried out in the area of
uniform management of people.
Upgrades of Zavarovalnica Maribor website were carried out and a number of new options were added
also to the segment of the website dedicated to business partners and intranet.
Major changes of IT system for calculations of insurance acquisitions were carried out on the basis of
business requirements.
Area of claims IT support:
•
In the area of claims IT support, one of the most important recent projects in Zavarovalnica Maribor
was carried out throughout the year – introduction of the so-called electronic claims file. New IT support
was created, enabling management of digitalized contents of the claims file and management of the
work process from registration, collection of documents and evidence to liquidation of the file, as part
of this project. The project was implemented in the area of claims arising from civil liability and for the
most part also in the car insurance area. Zavarovalnica Maribor hopes this project will bring about
significant direct cost saving as well as have indirect effects on more optimally organised business
processes. As part of this project, the system for settlement of car claims was also implemented and
upgraded, and with the aid of web services it was integrated into the central IT system of the insurance
company.
Business intelligence (BI) area:
•
•
A major infrastructure investment in a new system for data warehouse, with which we greatly increased
the ability to carry out analyses and to execute business reporting, was carried out. In addition, OLAP
technology was introduced and used in two target areas.
A large number of detailed data analyses for the needs of different recipients in insurance company
were made.
Telecommunications infrastructure area:
•
•
•
•
The process of upgrading our telecommunications network was conducted continuously, and in
addition the use of IP telephone technology was expanded. It is estimated that the process of transition
to IP telephony in Zavarovalnica Maribor will be completed by the end of 2009.
Server infrastructure and communications equipment were upgraded in some segments.
A number of activities regarding IT system protection were carried out and security policy was improved.
Call centre operations were given better support with applicative software.
B U S I N E S S
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35
Area of business process optimisation and personal data protection:
•
•
•
In accordance with the Data Protection Act, a number of new personal data catalogues were prepared
and reported to the Information Commissioner.
Policies for protection of privacy of employees at workplace were developed.
The scope of systems documents regarding business processes and IT system operations was
updated and expanded.
Area of project work:
•
•
Introduction of systematic project realisation in the company with project management IT support
continued, and we participated in a large number of projects as professional and technical support
A large number of trainings in the project management field were carried out.
3.5.2 Investments in 2008
In 2008 various investments were carried out in the amount of EUR 1,706,411.
Business Facilities
Investment policy for 2008 was based on three financing sources; accrued depreciation, revenue from disposal
of superfluous real estate and long-term investment loan.
In 2008 a special agreement was concluded with the investor in construction of business and commercial
centre Emonika. On the basis of this agreement, Zavarovalnica Maribor will obtain, in exchange for its existing
business premises of Branch Office Ljubljana, business premises with the same surface area in the 1st and
2nd floors of business tower Emonika. Until it obtains new premises, the Ljubljana Business Unit will operate
in the Slovenijales d.d building.
Age and state of the central Zavarovalnica Maribor building required numerous investment and maintenance
activities in 2008, ranging from replacement of some devices for heating and stable electricity to organisation
of individual offices and area in front of elevators.
Apart from conducting existing inspections, new legislation dictated new inspections, particularly in the area of
fire operational plans and evacuation plans. On account of the Data Protection Act, new systematic procedures
for management of documents, from creation to destruction, were made. Consequently paper shredders were
purchased for all organisational units and business units across Slovenia, especially for smaller volumes of
documents.
From the point of view of employee safety and protection of the building, video surveillance was installed in
the ground floor premises of the central building and the access control system was updated (replacement of
terminals on floors). Continuous organisational changes and new employments also demanded reorganisation
of employees in terms of office space and consequently purchase and installation of new office and technical
equipment.
Due to overcrowding of premises on Cankarjeva 3 in Maribor, business premises in the extension of the
computer centre in Tezno were additionally hired on the basis of an addendum with NKBM d.d. These premises
are occupied by employees working in the IT and Organisation Sector, Internal Audit Service and the Actuarial
Service.
On the basis of preliminary expert reports on economic eligibility of organisations and reorganisations of
business premises for principal insurance activity, business premises of Zavarovalnica Maribor in Novo mesto,
Murska Sobota and Sevnica were renovated in 2008.
B U S I N E S S
R E P O R T
36
We redesigned hired business premises in Trbovlje In order to open and ensure smooth operations of the
new representative office Zasavje. Hired offices in Voličina and Tezno in Maribor were prepared for the work
of representatives and partial reorganisations of the Company’s own premises in Radlje ob Dravi, Slovenska
Bistrica, Slovenj Gradec, Koper and Ptuj were carried out.
Investment in computer equipment:
Replacement of IT equipment was carried out according to the investment plan and a special operational
programe. When replacing and acquiring new computer equipment, the demands of the job and users' tasks
were considered as well as the actual software requirements.
When activating other technical equpment the normatives and standards established in practice were taken
into consideration to the greatest extent possible as well as the accelerated development of information
technology, which has already contributed to the growth of productivity and improvement of economics (lower
costs per technical unit).
Other investments in 2008:
Due to the nature of work in ZM the use of mobile telephone technology is very much present in the company.
When purchasing mobile telephones for the company use, they are classified into 4 groups according to
their value and types well as the applications and complexity of tasks they support. Majority of the phones
purchased are UMTS mobile telephones.
Five apartments and one business facility in Ormož, which were part of the real estate owned by ZM, were
sold in 2008.
We continued our efforts to ensure the grounds which would allow us to register the property (mainly the
residential units) in the Land Register, as we speeded up preparation of floor plans by a special campaign
involving heads of units in charge. Documentation was processed according to the adopted project on archiving
and a special plan, while the increased amount of documents required engagement of additional staff.
Investment plan for 2009:
For 2009 redesign of certain segments of the central building in Maribor, that are intended for work with
customers, staff training and newly established organisational units, is planned.
As due to economic and financial difficulties construction of the »Emonika« office and appartment building and
passenger terminal in Ljubljana will be delayed, the Ljubljana BU employees will move temporarily into the
Slovenijales office building only at the end of 2009.
Among major investments purchase of currently rented office facility in Slovenj Gradec and business premises
in Novo mesto is planned.
In 2009 the IP-telephony project in all the business and organisational units will be completed; thus the running
costs of telephone usage will be reduced significantly.
Floor plans for residential units will be prepared intensively as they are the key basis for the property to be
entered in the Land Register.
When the project of physical storage of ZM documentation is completed, we shall begin preparing the technical
basis to obtain the licence for electronic storage of archive units.
B U S I N E S S
R E P O R T
37
3.6
Internal Audit Report
The internal audit in ZM is organised as an independent, objective and consulting function that applies a
systematic and professional approach to risk management assessment, supervision system and business
operations management.
The Internal Audit Service works in compliance with International Standards for the Professional Practice of
Internal Auditing, Insurance Act, Code of Ethics of Internal Auditors, Code of Principles of Internal Auditing
and Operational Manual of the ZM Internal Audit Service.
Audit areas in 2008 were chosen on the basis of ZM’s annual operational risk assessment. By means of
selected audits all the key risk areas of the company’s operations were reviewed.
The subject of internal auditing in 2008 were the following operational areas of ZM:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Audit of insurance agent register keeping,
Audit of compliance with regulatory provisions regarding money laundry prevention,
Analysis of gaps in management of a selected project,
Audit of complete relations of Zavarovalnica Maribor d.d. and its insured and claimants during the
phase of claims settlements,
Audit of successfulness and efficiency of the IT and Organisation Sector operations,
Review of donations granted to Fundacija za spodbujanje otrokovega razvoja /Foundation for
encouragement of child's development,
Audit of Ljutomer BU operations,
Audit of adequacy of formation of keys for cost allocation by insurance subclasses,
Audit of Nova Gorica BU operations,
Audit of capital adequacy calculation process,
Audit of management of insurance product competitiveness,
Audit of the Murska Sobota BU operations,
Audit of education and training of human resources in the area of management skills,
Audit of process of ordering in the Marketing Service, limited to the New Year programme 'catalogue',
Audit of business co-operation with agencies,
Audit of provision for bonuses and rebates allocation,
Review of formal grounds for implementation of annual asset and liabilities registration process.
The Annual Audit Plan of the Internal Audit Service for 2008 was implemented entirely, within the set
deadlines and by using the planned human and financial resources.
Findings of the internal audit were regularly discussed by the Management Board of the company, and the
quarterly reports were submitted to the Supervisory Board.
3.7
Events after the Reporting Period
On 12 February 2009, the Croatian Financial Services Supervisory Agency issued the Decree to authorise
to Pozavarovalnica Sava d.d. an indirect acquisition of qualifying holdings both in the Sava Osiguranje d.d.
company and in the Sava Životno osiguranje d.d. company. The suspensive condition is thus fulfilled, enabling
Zavarovalnica Maribor d.d. to eliminate from its accounts the acknowledgement of non-current assets for sale.
Based on a resolution adopted by the General Assembly on 3 March 2009, distribution of calculated profit for
2007, that was adopted in July 2008, was abolished. Thus part of calculated profit, allocated for the Supervisory
Board members’ dividends and bonuses, shall be reallocated as retained profit in the capital of the company
as of the date of the General Assembly.
B U S I N E S S
R E P O R T
38
On 31 January 2009, Deputy Chairman of the Management Board Srečko Čebron’s employment relation was
terminated and he was apointed a member of the Management Board of Sava d.d. reinsurance company.
On 3 March 2009, the General Assembly discharged the members of the then Supervisory Board. Matjaž
Kovačič and Manja Skernišak, shareholders’ representatives of Nova KBM d.d., were nominated onto the new
Supervisory Board for another four-year mandate, while Dušan Čeč and mag. Janez Komelj, representatives
of Sava Reinsurance company, were nominated for the first time.
4.
SUSTAINABLE DEVELOPMENT REPORT
4.1
ZM in the Eyes of its Employees
The efforts of ZM are based on committed, satisfied and motivated employees, being aware that this is the
only way to achieve the goals set high by the company each year. We are aware that the questions regarding
the level of commitment and satisfaction of our employees can most easily be answered using various surveys
of employee commitment and satisfaction. Therefore ZM has in recent years been participating in two major
researches in employee commitment and satisfaction – in the international Top Companies for Leaders study
being performed by Hewitt Associates, and in the Golden Thread research (Zlata Nit) being performed by
Dnevnik newspaper.
Such surveys are aimed at acquiring the opinion of employees on the company and on the factors rendering
the company exceptional and different than others. We are aware that despite uncertain times ahead of us we
will be able to overcome any obstacles that might occur on our way to reaching our goal only if we work as
a team. Therefore we are aware that we have to continue to function as a uniform team of highly motivated,
committed and focused employees.
The Golden Thread research project was first performed in 2007, and in 2008, ZM again decided to participate
in the project. The Golden Thread focuses on the relation between the individual and the organisation,
undertaking a very specific task: to find top-level 21st century Slovenian companies allowing their employees
to realise their talents and use them to contribute to the success of the company. One of the purposes of the
project is to find the companies that can serve as an example and inspiration to the Slovenian economy – the
companies that are top companies to work for with regard to creative, successful and efficient development of
employees.
Performance assessment
The research that was performed in last December attracted a total of 177 companies (of which 61 also
participated in the selection for the Golden Thread 2007, ZM being one of them).
In performance assessment, the Golden Thread considers more than financial indicators. Based on the
»Balanced Scorecard« system, a questionnaire and the available financial indicators are used to examine the
performance in four areas: financial, marketing, innovation and human resource management. Performance
assessment is then complemented by the indicators of return on equity, business growth and added value per
employee, as available in annual reports and specialised financial databases.
According to research results, ZM succeeded in ranking among 101 top employers, but unfortunately not
among the selected 21 finalists. However, the results have shown the areas where the company has been
achieving above-average results, and the areas that will require increased attention in the future.
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4.2
Employees and Training
4.2.1 Employees
Total number of employees on 31st December 2008 was 909, which is an increase of 1.67 per cent in
comparison with 2007 (894). The emphasis on employment lies with the business units, as this way we find
it easier to ensure a better coverage and accessibility of our services all over Slovenia. In 2008, 21 new
in-house employees and 52 agents in the business units were hired, while the headquarters (sectors and
services) hired 15 new employees. In 2008 employee relationships were terminated for 47 agents and 26
in-house employees.
Growth and employee structure:
900
800
Number of employees
700
34
35
36
231
234
628
639
2007
2008
34
33
243
228
221
534
550
569
2004
2005
2006
600
500
400
300
200
100
0
BACK-OFFICE SERVICES
AGENTS
INDIVIDUAL CONTRACTS
In 2008, the main reasons for workforce fluctuation were termination of employment relationships by mutual
agreement, expiry of fixed-term work agreements and retirement.
In 2008, ZM employed 31 disabled persons, which exceeds the mandatory quota for employment of disabled
people by 13.
The average length of service in ZM is 17.29 years, with the highest average held by the Management Board
(25.75 years) and the Novo mesto BU (22.10 years), while the shortest lenghts of service is held by our
actuaries with the average length of service of 10,29 years and the employees of the Kranj BU with 11.84
years of the average lenght of service.
Average employee age is 39.54 years. There are no employees in the age group under 20 years, while in the
age group over 60 years in 2008 there were 7 employees in total. The employees are evenly spread over the
other age groups, the strongest group being the 31-40 years.
The average gross salary per employee in 2008 amounted to EUR 2,081.67 and the average agent’s salary
was EUR 1,939.51, while the average gross salary of in-house employees amounted to EUR 1,873.10.
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Labour costs vs. total operating expenses for 2008 amounted to 46.01 per cent, which is 2.02 per cent less
than in 2007.
The company education structure is partly determined by the requirements of the insurance legislation, as
for agents at minimum high school education is required. In 2008, the number of employees with secondary
education decreased by almost a per cent in comparison with the previous year. The number of employees
with higher education remained almost unchanged (the difference represented by one employee), while the
number of employees with university degree grew by 8.6 per cent and the number of employees with MA even
by 25 per cent.
The average number of employees of ZM in 2008 was 911 (2007: 889).
Review of employee education structure for 2004-2008:
100%
11
11
11
12
15
90%
152
166
181
210
228
118
126
121
120
489
469
462
470
467
62
60
58
61
60
2004
2005
2006
2007
2008
80%
109
70%
60%
50%
40%
30%
20%
10%
0%
22
II.
20
IV.
20
V.
20
VI.
VII.
19
VIII.-IX.
4.2.2 Employee Training
Long-lasting investments into our employees' knowledge continued by co-funding formal training of our
colleagues. In 2008 44 ZM employees had a contract on co-funding university courses, 27 for graduate and 17
for post-graduate courses. Three employees finished their studies.
The annual review of activities in the field of functional education shows that a number of planned education
events and employee training courses in all available areas were implemented successfully. In 2008 out of 909
ZM employees (as of 31 December 2008) 688 employees or 75.69 per cent participated in at least one form
of training.
A complete system was established allowing us to carry out internal individual training for new employees. This
training system comprises two areas. In the frame of the first one all the new employees are introduced with
work processes of the company while at the same time they get a chance to meet their superiors. The second
segment includes all heads of ZE; apart from the already mentioned topics they are presented in more detail
B U S I N E S S
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with the professional issues related to their area of work. As we strive to retain and most of all, raise the level
of sucessfulness and efficiency of work performance on the long-term basis, in 2008 we introduced the system
of knowledge testing by implementing the so-called internal licence.
Another step forward in comparison with the previous year was made in personal development training, as in
the area of sales skills our two in-house trainers were joined by another trainer.
Thus in the field of sales, trainings are carried out entirely by our in-house trainers, whereas outsourced
experts are hired only for those areas where the contents of lectures / knowledge of our internal lecturers have
been upgraded.
In co-operation with external trainers, in the frame of the previously mentioned training, workshops on
interpersonal communication and communication with demanding customers as well as school of business
excellence were organised. Also workshops for internal managers continued training in the area of proactive
management.
Professional training and IT courses are covered entirely by our internal lecturers and coaches.
4.2.3 Employees and sustainable development
Ever since implementation of the Employee Development – Motivation system process, employee development
activities have been sucessfully carried out, and have been further upgraded, modified and expanded with new
ideas in accordance with the needs that are identified in the working environment.
The company activities have been focused particularly on development of employees' skills and individual
careers. In the recent years these efforts have been intensified. Besides the existing instruments – evaluation
interviews, processes aimed at discovering new potentials – annual development interviews were included
as they are a key element for employees’ professional development and development of their careers. They
take place at the beginning of the year and end by mid-February the latest. This is an opportunity to build trust
between employees and their superiors as well as within the whole team. The head and employees discuss
work performance, goals, training and further development on individual and team level.
These annual development interviews will help us to ensure a successful organisation of competent, skilled
and efficient employees. In 2008 significantly modified annual development interviews were introduced.
Annual development interviews provide us with basic information which helps us design and develop parts
of training. Based on the employees’ wishes or needs to obtain new knowledge, as expressed during the
interviews, a higher level of professionalism and most of all, new skills for more efficient work performance can
be developed. The goal in this area is to identify the company’s employees who are willing to learn and offer
them possibilities to develop.
A vital tool for staff development and monitoring is work efficiency assessment, which is in ZM performed
every three months by means of a computer supported system. In 2008 the work efficiency assessment system
was upgraded. The software that enables managers a fast and simple evaluation was further improved and
adjusted to internal requirements; moreover, it makes evaluation on the company level even more transparent.
This tool allows head of departments to give the colleagues his/her feedback on their work based on selected
criteria and in frequent intervals, and is at the same time a possibility to regularly talk about work activities with
employees.
Next year we intend to modify and upgrade the exisiting system procedures for the area of human resources
development.
In autumn 2008 the first activities leading to new job systemation began. Its final version wil be an efficient basis
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for upgrade of existing projects (quarterly assessment of employees, regular annual interviews, development
of staff careers, employee training) and for development of new projects (flexible part of the salary, 360-degree
assessment etc.).
We continue to pursue the goals set in the past in the frame of which we decided to implement the Family
Friendly Company Certificate. With this certificate we have made it easier for our employees to coordinate their
professional and domestic responsibilities. In the first three years our staff are able to use of the measures
such as the Child Time Bonus, the Agent and Management Training. This year we received a positive opinion
by Zavod Ekvilib for the first of three annual reports, which is the condition for obtaining a full certificate after
a three-year period, when three new measures will be added to the existing ones, all based on the needs and
wishes of our staff.
In 2008 our employees used all of the three previously mentioned measures. Child Time Bonus, which allows
the parents to take special leave on the first day of school of their child in the first, second and third grade of
primary school, was used by 70 employees. The Agent, who assists the staff in solving the problems from
the above mentioned area (co-ordinating the family and business duties), was consulted several times and
for various reasons. All of these activities were complemented by Management Training. The purpose was
to achieve a uniform presentation of the described area, mainly due to the wish to enable equal use of the
introduced measures throughout the company.
Efficient development of successful staff is based on careful employee selection. In 2008, we continued the
established selection of sales force candidates, where DISC personality analysis is used. DISC personality
analysis represents additional criteria enabling us to make better decisions already in the very procedure of
staff selection. In 2009, the profile of personality analysis will also be developed for the posts of appraiser and
claims adjuster. In the subsequent development process of training employees, employees are developed as
required.
4.2.4 Care for Safety and Health of our Employees
At ZM we pay a lot of attention to health of our employees. Every year we organise a preventive medical
examination for the high-risk groups – appraisers, employees in insurance sales, managers at different
levels, administration staff etc. Employees in these positions have medical examinations more frequently
than the less exposed staff. Also flu vaccination is organized.
We are proud to have introduced in 2008 a benefit showing our care for the health of our female employees. In
cooperation with the ZM trade union and workers’ council we have been offering for the second year in a row
preventive mammography screenings using one of the most advanced mammography machines in Slovenia.
Preventive screenings are accessible to female employees who are over 40 years old within the available
quota of 100 employees.
Only 20 accidents at work were recorded in 2008, mostly injuries originating in traffic accidents, back injuries
and falls on slippery surfaces.
In cooperation with the regional committee of ZM trade union, employees can exercise in rented sports
facilities, where they can play basketball, football, volleyball or tennis. Families can use vacation capacities at
Rogla throughout the year, where many employees spend a weekend break, as well as enjoy the winter skiing
paradise or summer hiking and the deep shade of Pohorje forests. Athletes can attend the summer or winter
sports games of financial organisations (ŠIFO). Within the trade union, ZM organises trips for employees, while
sports games for ZM employees are organised each year by one of the business units.
The Collective accident insurance premium is paid by ZM for all the employees, whereas each employee
can additionally ensure themselves and their family members at favourable conditions. Anybody employed
permanently by ZM can also enter the supplementary pension insurance scheme (second pillar). Company’s
cost for workers’ voluntary pension insurance premiums in 2008 amounted to EUR 461,255.88.
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At the end of the year, the final meeting for our “most recently” retired employees is organised, where they
receive a remembrance present. The meeting is attended by managers and the management board.
ZM trade union organises New Year events for employees as well as gift-giving accompanied by dancing and
Christmas celebrations intended for employees’ children.
4.2.5 Development of the Administration section of the Human Resources Service
In 2008, the KOPA human resources information system was supplemented and upgraded. In the upcoming
year we plan to further develop the human resources part, add a new module for education as well as provide
the controlling with the insight into certain applications.
A rationalisation of work processes within the Human Resource Development Service has resulted in increased
efficiency, newly introduced traceability of the processes and improved procedures of internal communications
with employees and organisational units.
We cooperate with faculties and higher education institutions by providing them with co-tutoring of term papers
and diploma theses. University and secondary school students are welcome to perform compulsory practical
training or vacation jobs in ZM.
4.3
Quality Management System
Based on their audits, the auditors of Bureau Veritas certification company provided certain recommendations.
After we had implemented them, the auditors confirmed for the quality system documentation and performance
to be in compliance with the requirements of the reference standard. This year a new recertification audit is
planned according to the SIST EN ISO 9001:2008 standard.
Also this year we plan to transfer system documentation to the intranet to make it even more user-friendly.
Eighteen (18) new internal auditors have been trained to reinforce the extremely weak group.
The majority of twelve planned audits for 2008 have been implemented. The internal audit, purchase and
abuse prevention audits that have not been implemented were postponed to this year. The audit of system
maintenance (Aris) has been dropped as Aris system proved too complex for our system. The majority of
audits resulted in recommendations or findings of minor deviations, which we have taken into consideration
accordingly.
The plan of internal audits for 2009 has been prepared and confirmed. New auditors were added as audit
members to train as independent auditors as soon as possible and perform audits independently, as we have
stated in the system procedure of Internal audit that they should participate in no less than two audits.
4.4
Social Responsibility
ZM is an extremely socially responsible company, which is aware of its connection with the environment it
operates in. With various donor, sponsorship and humanitarian projects the company constantly gives back to
the environment what it receives from it.
In 2008, a number of sport and cultural events and activities were financially supported by ZM. Among the most
prominent projects, funded by ZM in 2008, were:
•
•
•
the “Golden Fox” (Zlata lisica) – Alpine ski World cup competition in Maribor on the slopes of Pohorje;
general sponsorship of the Maribor Football Club;
general sponsorship of the Ice Hockey Club Zavarovalnica Maribor – Olimpija (until 30 April 2008);
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•
•
•
•
•
4.5
Festival Lent;
Slovenian Theatre Festival »Borštnik's Meeting« (Borštnikovo srečanje);
Gazelles (Gazele) awards for the fastest growing SMEs in Slovenia;
Fundacija za spodbujanje otrokovega razvoja/Foundation for encouragement of child’s development
– donation;
Narodni dom – sponsorship of Maribor Festival (Glasbeni september/ September Music Festival).
Communication with Target Groups
Also in 2008 the strategy of communication with the key target groups of ZM was adjusted to the interests
and characteristics of individual publics, and selected tools were used to maximise effectiveness of
communication.
Our key target groups are:
•
•
•
•
•
our clients and business partners,
employees,
media,
shareholders and financial publics,
local community and environment.
In the process of communication and customer relationships management those communication tools
were used that ensure maximum effectiveness of communication: direct mail, communication via electronic
media, event management and business meetings with customers, presentational publications, surveys and
questionnaires as well as open telephone lines.
In the area of internal communication we continued the existing activities to provide our employees with
information and ensure communication with them (electronic communication, publishment of internal newsletter,
information via intranet page aimed at staff, electronic prize draws/competitions, formal and informal personal
communication management etc.).
We are well aware of the importance of open and regular communication with media for representation of our
insurance company and creation of the image of ZM with general, business and decision-making public.
In 2008 we therefore communicated with media through press conferences, media breakfasts, press releases,
replies to media enquiries, informal meetings with journalists and other activities. In 2008 ZM policy holders
were affected by several disastrous hailstorms. Via media we informed our customers also on appropriate
manner of claims settlement and loss reporting, and long-term good co-operation between journalists and
editors of several media companies and ZM Public Relations Service was particularly helpful.
To provide our shareholders and other financial publics with timely and accurate information an active
communication (both in a written and verbal form) was ensured also in 2008; furthermore, regular briefings
on our business operations were organised and other important information was provided. Our annual
report remains a key communication tool. Among other efficient tools, which we have continued to use for
communication purposes, are data books, personal presentations, meetings with the company management,
letter to shareholders, quarterly and semi-quarterly reports, annual shareholders' meeting and others.
By numerous sponsorships, donations, awareness raising activities in the areas of sport, culture, health and
art we continue to have an active role in the wider social activities and focus on reaching other vital goals. With
a well defined communication strategy and responsible attitude towards the environment we increase the level
of our recognisability and strengthen our reputation.
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4.6
Management of the Environment
In 2008, ZM also supported the projects contributing to the protection and preservation of natural heritage and
the environment; at the same time we strive to use the existing sources as efficiently as possible.
In September 2008, our insured were thus presented special ECO discounts – vehicle insurance premiums
discounted up to 15 percent for the insured that drive fewer kilometres per year. Environmental changes that
have been showing as climate changes and have been causing damage on farming lands, residences and
cars, are the result of long-term developments as well as our inconsiderate conduct.
”In recent years, our behaviour towards the environment has become a major issue. ZM has been dealing with
environmental changes and what affects them since 2004, when the first of our projects to achieve greater
environmental awareness was executed. Apart from other pollutants that cannot be avoided due to the nature
of work and increased productivity, traffic is a major air pollutant emitting carbon dioxide (CO2) and other
harmful gases, such as carbon monoxide (CO), nitrogen dioxide (NO2) and dust particles. It is the containment
of such pollution that Zavarovalnica Maribor wishes to contribute to,” is how Drago Cotar, Chairman of the
Management Board, explained the decision to introduce the ECO discount.
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5.
MANAGEMENT BOARD AND SUPERVISORY BOARD
5.1
Management Board
Drago Cotar, Chairman of the Management Board
He graduated at the Faculty of Economics and Business in Maribor in 1975 and
started his career in Elektrokovina. In 1976 he was employed by ZM as an appraiser
of transport damage. After six years he was promoted to transport manager and
in 1982 to assistant director. In 2002 he was awarded the flattering title “best
director” by the city of Maribor. He has held the position of the chairman of the ZM
Management Board since 1990. He is responsible also for human resources, public
relations and the Management Board secretariat.
Srečko Čebron, Deputy Chairman of the Management Board
He graduated from the University in Trieste in 1979 with a degree in geosciences.
In 1980 he started working at the Generali headquarters in Trieste as a construction
and installation insurance clerk. Six years later he moved to Milano, where he was
in charge of all nonclassical insurances in the US brokerage company Johnson &
Higgins. In 1988 he accepted the risk manager position at the German chemical
multinational company Basf in Milano. Two years later he joined the small newly
founded insurance Noricum in Trieste, where he covered the fields of technology
and commerce. In April 1991 he opened a Unipol representative office in Moscow.
In 1995 he returned to Italy, to Unipol in Bologna, where he was responsible for
Middle and East European markets, for China and Portugal. In 1997 he became
in charge of the Unipol insurance Milano subsidiary. From April 1999 on he was a
member of the Tilia management board and from November 2001 on a member of
the ZM Management Board. He is in charge of non-life and life insurance technology as well as of the actuarial
service.
Srečko Čarni, Member of the Management Board and Workers’ Director
He is a lawyer with a bar exam. He started working at ZM in 1973 as a lawyer for
the Automobile Insurance Department. He continued his career as the manager
of the personal affairs department (between 1975 and 1977), on 1. 10. 1977 he
took over the function of the assistant director for self-government organisation and
personnel at the Insurance Community Triglav, Regional Community Maribor. When
Zavarovalnica Maribor became independent in 1991 he became assistant director
for generallegal and personnel affairs and on 1st April 1995 a member of the ZM
Management Board for generallegal, management-legal and personnel affairs.
After his term as a member of the company management board ran out (in 2000)
he took up the work and tasks of the company secretary, on 17th November 2004
he was promoted to the position of the Workers’ Director and thus a Member of the
Management Board. He is also in charge of the legal service and implementation
of the resolutions referring to the human resources area.
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David Kastelic, Member of the Management Board
After graduating from the Faculty of Mechanical Engineering in Maribor he started
working for Philip Morris in Ljubljana, where he worked in the field of marketing.
On 16th March 1998 he joined ZM and took over the duties of assistant director
for automobile damage and reimbursement execution sector. On 1st July 2004 he
was given the position of executive director of non-life insurance, where he was
in charge of development and outstanding claims of such insurance at ZM. David
Kastelic has been a Management Board member since 1st November 2006 and is
in charge of marketing.
Marko Planinšec, Member of the Management Board
Marko Planinšec became a member of the Management Board of Zavarovalnica
Maribor on 1.1.2008, after he obtained the licence for performing the function of a
board member.
He holds a B.Sc. Economics and civil engineering. After he graduated in
analysis and planning from the Maribor Faculty of Economics and Business
in 1991, he began his career as an apprentice in the former „Služba
družbenega knjigovodstva” (Public Bookkeeping Office). He then became an
auditor in Coopers & Lybrand and PriceWaterhouseCoopers. In April 2001
he was appointed a member of the Management Board of KBM Infond asset
management company. As a member of the Management Board of Zavarovalnica Maribor he is in charge of
finances, accounting, IT and organisation.
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5.2
Supervisory Board
Matjaž Kovačič, Chairman of the SB
Shareholder Representative
Maja Krumberger,
Manja Skernišak,
Nataša Prah,
Edi Kosi, član NS, Employee representative BrankoTekmec, član NS
Employee representative
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5.3
ZM Sectors and Services Directors
Marketing Sector
Executive director: Evgen Likl, M. Sc
Life Insurance Technology Sector
Executive director: Tomislav Ćaćić
Non-life Insurance Technology Sector
Deputy executive directors: Boris Visočnik,
Sebastjan Strmšek, Uroš Pušnik, M. Sc
Financial Sector
Executive director: Renata Doler Tisaj, M.Sc.
Accounting Sector
Executive director: Anton Vadnjal
Information Technology and Organisation
Sector
Executive director: Borut Celcer, M.Sc.
Actuarial Service
The person in charge of the service: Srečko
Čebron, Member of the Manahement Board
Internal Audit Service
Director: Boris Presker
Public Relations Service
Director: Natalija Postružnik, M.Sc.
Legal Service
Legal and Human Resources Service
Human Resources Development
Service
Director: Maksimiljan Keuc (until 31 March 2008)
Director: Samo Červek (from 8 November 2008)
Maintenance Service
Director: Maja Glavar Zlatnar (until 1 August 2008)
Head of service: Suzana Kranjc (from 1 August
2008)
Director: Marjan Makari
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5.4
Map of ZM Business Units in Slovenia
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51
5.5
ZM Business Units
Ljubljana Branch Office
Dunajska cesta 8, 1000 Ljubljana, p.p. 353
Phone: 01/234 55 04
Fax: 01/234 55 10
E-mail: [email protected]
Director: Marko Vilfan
Maribor Branch Office
Cankarjeva ul. 3, 2507 Maribor
Phone: 02/233 23 07
Fax: 02/233 25 28
E-mail: [email protected] and
[email protected]
Director: Miran Kunst
Celje Branch Office
Ljubljanska c. 14, 3000 Celje
Phone: 03/428 45 04
Fax: 03/544 31 45
Director: Florjan Lorger
Kranj Representative Office
Nazorjeva ul. 1, 4000 Kranj
Phone: 04/281 80 10
Fax: 04/281 80 20
Director: Tedo Djekanović
Nova Gorica Representative Office
Bevkov trg 6, 5000 Nova Gorica
Phone: 05/335 90 00
Fax: 05/335 90 15
Director: Stanislav Rijavec
Koper Representative Office
Cesta Zore Perello-Godina 2,
6000 Koper, p.p. 223
Phone: 05/611 77 80
Fax: 05/639 36 85
Director: Iztok Rolih
Slovenj Gradec Branch Office
Francetova cesta 7, 2380 Slovenj Gradec
Phone: 02/881 27 00
Fax: 02/881 27 37
Director: Peter Slemenik
Novo mesto Representative Office
Zwittrova 1, 8000 Novo mesto
Phone: 07/332 53 30
Fax: 07/332 53 31
Director: Jože Klobčar
Ljutomer Representative Office
Prešernova 7, 9240 Ljutomer
Phone: 02/584 96 70
Fax: 02/584 12 42
Director: Boris Lebar
Murska Sobota Representative Office
Bakovska 2, 9000 Murska Sobota
Phone: 02/535 12 46
Fax: 02/535 12 47
Director: Jožef Benkovič
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6. SELECTED FINANCIAL AND ACCOUNTING INDICATORS OF BUSINESS
OPERATIONS 2008
1. Growth of gross premium written (index)
No.
INSURANCE CLASS
1
2
1
ACCIDENT INSURANCE
2
HEALTH INSURANCE
3
4
Gross premium
written for the current
year
Gross premium written
for the past year
Growth index
Gross premium
year
Gross premium
written for the past
year
from 1.1. to
31.12.2008
from 1.1. to
31.12.2007
in 2008
from 1.1. to
31.12.2007
from 1.1. to
31.12.2006
3
Growth index
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 * 100
Growth index
1.763.208
1.581.551
111
18.765.775
17.640.452
106
LAND MOTOR VEHICLES INSURANCE
65.976.980
63.674.780
104
43.071.408
36.745.991
117
RAILWAY ROLLING STOCK INSURANCE
19.766.524
18.765.775
105
5
AIRCRAFT INSURANCE
66.258.345
64.612.679
103
261.709
417.954
63
6
VESSEL INSURANCE
235.751
126.124
187
248.122
226.651
109
7
GOODS IN TRANSIT INSURANCE
185.666
139.928
133
1.238.454
548.956
226
8
INSURANCE AGAINST FIRE AND NATURAL FORCES
6.099.508
5.345.323
114
8.662.887
7.272.816
119
9
OTHER DAMAGE TO PROPERTY INSURANCE
2.223.703
2.701.021
82
23.328.099
19.136.586
122
10
MOTOR THIRD-PARTY LIABILITY INSURANCE
11
AIRCRAFT LIABILITY INSURANCE
12
VESSEL LIABILITY INSURANCE
13
GENERAL LIABILITY INSURANCE
14
CREDIT INSURANCE
15
SURETYSHIP INSURANCE
520.648.052
482.393.045
16
MISCELLANEOUS FINANCIAL LOSS INSURANCE
232.100.259
17
PROCEDURE COSTS INSURANCE
147.114
18
ASSISTANCE INSURANCE
TOTAL NON-LIFE INSURANCE PRODUCTS
8.155.515
7.915.926
103
64.612.679
62.192.265
104
82.902.880
78.895.525
105
126.124
93.733
135
114.755.683
96.748.380
119
139.928
103.061
136
59.287.335
51.572.819
115
5.345.323
4.485.807
119
2.701.021
3.014.988
90
108
42.468
39.977
106
225.265.290
103
610.521
410.357
149
72.838
202
357.587
330.437
108
747.757
457.451
163
1.161.019
1.354.485
86
1.181.254.280
1.100.268.455
107
170.673.124
154.014.516
111
19
LIFE INSURANCE
234.900.182
226.933.200
104
39.345.285
41.845.035
94
21
UNIT-LINKED LIFE INSURANCE
185.867.592
170.673.124
109
24.329.495
14.452.008
168
420.767.774
397.606.324
106
63.674.780
56.297.043
113
1.602.022.054
1.497.874.779
107
234.347.904
210.311.559
111
TOTAL LIFE INSURANCE PRODUCTS
TOTAL ZM d.d.
2. Net insurance premium written in % of gross premium written
No.
INSURANCE CLASS
1
2
Net written insurance
premium for the
current year
Gross premium
written for the
current year
% of net
premium
premium for the
current year
Gross premium
written for the
current year
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to
31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
1
ACCIDENT INSURANCE
12.586.063
2
HEALTH INSURANCE
36.831.994
3
29.093.686
4
38.357.182
5
AIRCRAFT INSURANCE
6
VESSEL INSURANCE
7
8
9
1.763.208
713,8
14.545.439
18.765.775
77,5
65.976.980
44,1
32.736.606
43.071.408
76,0
19.766.524
194,1
66.258.345
-25.373
261.709
-9,7
190.001
248.122
76,6
131,1
746.565
1.238.454
60,3
13,7
4.532.122
8.662.887
50,8
2.223.703
237,4
16.234.292
23.328.099
69,6
15.703.881
8.155.515
192,6
49.937.437
64.612.679
77,3
52.449.996
82.902.880
63,3
29.923
126.124
23,7
28.901
114.755.683
0,0
107.487
139.928
76,8
146.128
59.287.335
0,2
3.768.947
5.345.323
70,5
2.088.629
2.701.021
77,3
43.683
42.468
102,9
0,0
347.547
610.521
56,9
279,7
-325.267
357.587
-91,0
235.751
27,3
243.454
185.666
834.530
6.099.508
5.279.807
10
11
12
13
14
CREDIT INSURANCE
4.412.231
15
1.806.172
520.648.052
16
81.945
232.100.259
17
411.441
147.114
18
19
LIFE INSURANCE
21
TOTAL ZM d.d.
% of net
premium
64.276
0,3
-381.567
747.757
-51,0
339.024
1.161.019
29,2
197.950.118
1.181.254.280
16,8
125.297.062
170.673.124
73,3
376.271
234.900.182
0,2
39.310.724
39.345.285
99,9
24.299.869
24.329.495
99,9
185.867.592
376.271
420.767.774
0,1
63.610.593
63.674.780
99,9
198.326.389
1.602.022.054
12,4
188.907.655
234.347.904
80,6
B U S I N E S S
R E P O R T
53
3. Movement in gross claims paid (index)
No.
INSURANCE CLASS
1
2
Gross claims paid for the
current year
Gross claims paid
for the past year
from 1.1. to 31.12.2008
from 1.1. to
31.12.2007
3
Change index
in 2008
4
5 = 3 / 4 * 100
Gross claims paid for the
current year
Gross claims paid for
the past year
Change index
from 1.1. to 31.12.2007
from 1.1. to
31.12.2006
in 2007
3
4
5 = 3 / 4 * 100
1
ACCIDENT INSURANCE
3.044.700
2.249.764
135
2
HEALTH INSURANCE
1.947.786
1.166.981
167
3
1.238
122
1.015
4
3.181
3.932
81
5
AIRCRAFT INSURANCE
6.041.895
5.190.429
116
6
VESSEL INSURANCE
2.041.679
2.481.054
82
91.430
172.542
53
7
1.080.741
380.693
284
404.004
42.532
950
8
274.486
205.887
133
9
7.353.257
93
32.333.927
27.351.244
118
10
143.796.303
136.991.167
11
322.312.450
12
13
14
CREDIT INSURANCE
15
16
17
18
187.694
7.073.917
7.054.680
100
15.342.009
12.018.118
128
105
37.993.369
34.556.098
110
294.220.569
110
122
1.527
8
325.813
209.372
156
3.932
450
874
37.146.551
28.147.395
132
5.190.429
5.042.444
103
2.481.054
3.364.900
74
380.693
92.164
413
205.887
8.857.945
2
270
6.856.524
1.893.567
1.454.366
130
189.237.506
146.939.587
129
270
1.134.001
1.049.520
108
332.922
343.403
97
710.281.897
620.691.108
114
108.878.183
106.251.304
102
19
LIFE INSURANCE
376.662
397.950
95
28.899.312
27.106.280
107
21
96.036.421
47.599.425
202
847.874
249.955
339
96.413.083
47.997.375
201
29.747.186
27.356.235
109
806.694.980
668.688.483
121
138.625.369
133.607.539
104
TOTAL ZM d.d.
4. Average claim paid
No.
INSURANCE CLASS
1
2
the current year
Number of
claims for the
current year
Average
claims in
euro
the current year
Number of claims
for the current year
Average
claims in
euro
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to
31.12.2007
in 2007
3
4
5=3/4
3
4
5=3/4
1
ACCIDENT INSURANCE
3.044.700
2
HEALTH INSURANCE
1.947.786
3
1.238
4
3.181
5
AIRCRAFT INSURANCE
6
VESSEL INSURANCE
7
8
621.101
5
6.856.524
13.992
490
1.393
1
32.333.927
57.137
566
204
16
6.041.895
157.293
38
187.694
3
62.565
2.041.679
178.846
11
91.430
71
1.288
1.080.741
21.553
50
404.004
1.963
206
274.486
456
602
7.073.917
3.916
1.806
15.342.009
22.610
679
37.993.369
16.204
2.345
122
9
10
143.796.303
154.501
931
322.312.450
1.401.896
230
122
1
325.813
1.247.395
0
3.932
4
983
37.146.551
869.845
43
5.190.429
2.735
1.898
2.481.054
2.879
862
380.693
11
34.608
11
12
13
14
CREDIT INSURANCE
15
16
17
18
475
167.154
1.893.567
829.696
2
205.887
112
1.838
189.237.506
153.651
119.006
1.590
270
3
90
1.134.001
1.876.224
1
332.922
710.281.897
7.800.689
91
108.878.183
121.641
895
376.662
1.622.536
0
28.899.312
20.375
1.418
19
LIFE INSURANCE
21
96.036.421
1.189
80.771
847.874
1.386
612
96.413.083
1.623.725
59
29.747.186
21.761
1.367
806.694.980
9.424.414
86
138.625.369
143.402
967
TOTAL ZM d.d.
B U S I N E S S
R E P O R T
54
5. Claims ratio
No.
INSURANCE CLASS
1
2
Gross claims paid
Gross premium
written for the
current year
Claims ratio
in %
Gross claims paid
Gross premium
year
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to
31.12.2007
in 2007
3
4
5 = 3 / 4 (%)
3
4
5 = 3 / 4 (%)
1
ACCIDENT INSURANCE
3.044.700
2
HEALTH INSURANCE
1.947.786
3
4
5
6
Claims
ratio in %
1.763.208
172,7
6.856.524
18.765.775
36,5
1.238
65.976.980
0,0
32.333.927
43.071.408
75,1
3.181
19.766.524
0,0
AIRCRAFT INSURANCE
6.041.895
66.258.345
9,1
187.694
261.709
71,7
VESSEL INSURANCE
2.041.679
235.751
866,0
91.430
248.122
36,8
7
1.080.741
185.666
582,1
404.004
1.238.454
32,6
8
274.486
6.099.508
4,5
7.073.917
8.662.887
81,7
9
15.342.009
23.328.099
65,8
10
143.796.303
8.155.515
1.763,2
37.993.369
64.612.679
58,8
11
322.312.450
82.902.880
388,8
122
126.124
0,1
12
325.813
114.755.683
0,3
3.932
139.928
2,8
13
37.146.551
59.287.335
62,7
5.190.429
5.345.323
97,1
14
CREDIT INSURANCE
2.481.054
2.701.021
91,9
15
1.893.567
520.648.052
0,4
380.693
42.468
896,4
16
33,7
17
18
2.223.703
232.100.259
205.887
610.521
189.237.506
147.114
128.633,2
270
357.587
0,1
1.134.001
747.757
151,7
332.922
1.161.019
28,7
710.281.897
1.181.254.280
60,1
108.878.183
170.673.124
63,8
376.662
234.900.182
0,2
28.899.312
39.345.285
73,5
19
LIFE INSURANCE
21
96.036.421
185.867.592
51,7
847.874
24.329.495
3,5
96.413.083
420.767.774
22,9
29.747.186
63.674.780
46,7
806.694.980
1.602.022.054
50,4
138.625.369
234.347.904
59,2
TOTAL ZM d.d.
6. Operating costs in % in regard to gross written premium
No.
INSURANCE CLASS
1
2
Operating costs
Gross written
premium for the
current year
% of
operating
costs
Operating costs
Gross written
premium for the
current year
% of
operating
costs
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to
31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
1
ACCIDENT INSURANCE
1.763.208
2
HEALTH INSURANCE
13.362.171
3
60.517.819
65.976.980
4
13.778.261
19.766.524
5
AIRCRAFT INSURANCE
6
VESSEL INSURANCE
7
7.330.031
18.765.775
39,1
91,7
11.363.136
43.071.408
26,4
69,7
397
6.508.898
66.258.345
9,8
37.956
261.709
14,5
12.109.568
235.751
5.136,6
55.336
248.122
22,3
52.795
185.666
28,4
483.561
1.238.454
39,0
8
54.508
6.099.508
0,9
2.390.187
8.662.887
27,6
9
1.131.004
2.223.703
50,9
6.007.109
23.328.099
25,8
10
14.102.166
64.612.679
21,8
11
13.472
126.124
10,7
12
28.997
139.928
20,7
13
1.063.697
5.345.323
19,9
14
CREDIT INSURANCE
284.275
1.327.433
2.701.021
49,1
15
888.279
520.648.052
44.027
42.468
103,7
16
17.660.905
232.100.259
7,6
111.728
610.521
18,3
17
42.966.743
147.114
29.206,4
116.270
357.587
32,5
18
20.280.976
747.757
2.712,2
196.580
1.161.019
16,9
231.592.806
1.181.254.280
19,6
44.672.083
170.673.124
26,2
8.155.515
41.993.423
82.902.880
50,7
114.755.683
3.182
59.287.335
0,0
0,2
19
LIFE INSURANCE
33.643.147
234.900.182
14,3
7.999.546
39.345.285
20,3
21
46.739.558
185.867.592
25,1
6.518.891
24.329.495
35,9
80.382.705
420.767.774
19,1
14.518.437
63.674.780
26,3
311.975.511
1.602.022.054
19,5
59.190.519
234.347.904
26,2
TOTAL ZM d.d.
B U S I N E S S
R E P O R T
55
7. Insurance acquisition costs in % of gross insurance premium written
No.
INSURANCE CLASS
1
2
Acquisition costs
Gross written
premium for the
current year
% of
acquisition
costs
Acquisition costs
Gross written
premium for the
current year
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to
31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
1
ACCIDENT INSURANCE
2
HEALTH INSURANCE
147.220.143
12.126.812
3
4
5
6
7
8
% of
acquisition
costs
1.763.208
8.349,6
1.153.217
18.765.775
6,1
-2.423.515
65.976.980
-3,7
2.842.547
43.071.408
6,6
49.963
19.766.524
0,3
397
AIRCRAFT INSURANCE
21.236.935
66.258.345
32,1
7.124
261.709
2,7
VESSEL INSURANCE
21.186.216
235.751
8.986,7
20.022
248.122
8,1
-50.719
185.666
-27,3
119.264
1.238.454
9,6
269.981.551
6.099.508
4.426,3
931.464
8.662.887
10,8
9
93.282.112
2.223.703
4.194,9
1.571.547
23.328.099
6,7
10
230.439.647
8.155.515
2.825,6
2.348.304
64.612.679
3,6
11
83.219.504
82.902.880
100,4
1.174
126.124
0,9
12
25.025.649
114.755.683
21,8
4.701
139.928
3,4
13
42.231.719
59.287.335
71,2
277.753
5.345.323
5,2
14
CREDIT INSURANCE
17.206.070
15
136.377.164
520.648.052
26,2
427
42.468
1,0
16
202.352.807
232.100.259
87,2
36.723
610.521
6,0
17
65.975.643
147.114
44.846,6
23.220
357.587
6,5
18
1.263.358
747.757
169,0
47.571
1.161.019
4,1
1.366.701.059
1.181.254.280
115,7
9.385.455
170.673.124
5,5
2.701.021
19
LIFE INSURANCE
13.390.170
234.900.182
5,7
2.014.894
39.345.285
5,1
21
-2.473.478
185.867.592
-1,3
3.323.913
24.329.495
22,8
TOTAL ZM d.d.
10.916.692
420.767.774
2,6
5.338.807
63.674.780
11,9
1.377.617.751
1.602.022.054
86,0
14.724.262
234.347.904
7,2
8. Impact of investments in % of average investments (of opening and closing balance)
No.
INSURANCE CLASS
1
Return on
investments
(income less
expenses)
Average
investments (1.1. +
31.12.) / 2
% return
Return on
investments
(income less
expenses)
Average investments
(1.1. + 31.12.) / 2
% return
from 1.1. to
31.12.2008
in 2008
in 2008
from 1.1. to
31.12.2007
in 2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
2
1
BUSINESS FUND INVESTMENTS
5.198.779
7.098.451
112.117.251
6,331
2
LONG-TERM BUSINESS FUND INVESTMENTS
2.668.318
30.182.227
310.827.406
9,710
3
OWN RESOURCES INVESTMENTS
6.031.827
992.216
22.576.644
4,395
TOTAL INVESTMENTS OF ZM d.d.
13.898.924
38.272.894
445.521.300
8,591
9. Net provisions for claims outstanding in % of net income arising from insurance premiums
No.
INSURANCE CLASS
1
2
1
ACCIDENT INSURANCE
2
HEALTH INSURANCE
3
4
5
AIRCRAFT INSURANCE
6
VESSEL INSURANCE
7
8
9
Net provisions for
claims outstanding
Net income from
insurance premiums
Provisions
for claims
outstanding
in net
premium
Net provisions for
claims outstanding
Net income from
insurance premiums
Provisions
for claims
outstanding
in net
premium
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to
31.12.2007
in 2007
3
4
3
4
52.281.119
8.794.491
13.999.417
62,8
9.870.294
30.735.373
32,1
127,3
95.728
172.177
55,6
110,7
695.375
671.836
103,5
19.026.585
824,8
1.257.187
4.386.147
29,5
1.518.205
28.928,4
5.715.608
15.159.389
37,7
79.964
33.560
238,3
46.593.985
49.339.351
94,4
11.805.494
130.191
9.067,8
1.137
26.811
4,2
1.150.984
4.325.108
26,6
3
94.055
0,0
726.443
1.800.909
40,3
11.654.305
3.574.842
326,0
14
CREDIT INSURANCE
113.494
53.966
210,3
1.767.041
1.948.124
90,7
15
295
409.918
0,1
8.342
41.555
20,1
16
483
-406.316
-0,1
160.124
318.852
50,2
17
10.211.088
376.271
2.713,8
351
-337.066
-0,1
18
29.088.729
38,7
73.886
69.970
105,6
635.681
231.244
274,9
1.247.141
979.927
5.637.855
5.092.100
156.927.426
439.192.866
10
11
12
13
19
LIFE INSURANCE
21
TOTAL ZM d.d.
11.268.002
3.594
-40.323
36.886.914
639.074.696
151.898.400
339.024
420,7
1.392.093
36.568.198
86.613.972
120.429.563
72,0
10.816.427
39.424.751
27,4
837.473
24.296.337
3,4
1.392.093
36.568.198
3,8
11.653.900
63.721.088
18,3
640.466.789
188.466.598
339,8
98.267.873
184.150.651
53,4
B U S I N E S S
R E P O R T
56
10. Gross profit or loss for the current year in % of net premium written
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
Profit (+) or loss (-)
Net insurance
premium written for
the current year
% of profit/loss in net
premium
Net insurance premium
year
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 (%)
3
4
5 = 3 / 4 (%)
TOTAL ZM d.d.
% of profit/loss in net
premium
3.681.850
197.950.118
1,86%
830.745
125.297.062
0,66%
833.048
376.271
221,40%
5.481.370
63.610.593
8,62%
4.514.898
198.326.389
2,28%
6.312.114
188.907.655
3,34%
11. Gross profit or loss for the current year in % of average capital
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
Average capital
(1.1.+ 31.12. / 2)
% of profit/loss in
capital
Average capital
(1.1.+ 31.12. / 2)
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 (%)
3
4
5 = 3 / 4 (%)
TOTAL ZM d.d.
% of profit/loss in
capital
3.681.850
34.997.395
10,5
830.745
25.875.557
3,2
833.048
10.416.783
8,0
5.481.370
43.835.554
12,5
4.514.898
45.414.178
9,9
6.312.114
69.711.110
9,1
12. Gross profit or loss for the current year in % of average assets
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
Average assets
(1.1.+ 31.12. / 2)
% of profit/loss in
assets
Average assets
(1.1.+ 31.12. / 2)
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
TOTAL ZM d.d.
% of profit/loss in
assets
3.681.850
279.253.395
1,3
830.745
246.066.567
0,3
833.048
343.852.360
0,2
5.481.370
326.010.486
1,7
4.514.898
619.377.213
0,7
6.312.114
568.456.195
1,1
13. Gross profit or loss for the current year per share
No.
1
INSURANCE
CLASS
2
Number of shares
from 1.1. to
31.12.2008
3
TOTAL ZM d.d.
Profit/loss per share
Number of shares
Profit/loss per share
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
4
5=3/4
3
4
5=3/4
4.514.898
3.444.824
1,3
6.312.114
6.812.050
0,9
14. Net profit or loss for the current year in % of average capital
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
Net profit (+) or
loss (-)
Average capital
(1.1. + 31.12./ 2)
% of profit/loss in
capital
Net profit (+) or
loss (-)
Average capital
(1.1. + 31.12./ 2)
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
TOTAL ZM d.d.
% of profit/loss in
capital
2.791.783
34.997.395
8,0
528.742
25.875.557
2,0
528.742
10.416.783
5,1
3.626.590
43.835.554
8,3
3.320.525
45.414.178
7,3
4.155.332
69.711.110
6,0
15. Available capital of insurance company in % of net premium
No.
1
INSURANCE
CLASS
2
Available capital of
insurance company
Net written
insurance premium
% avail. capital in net
premium
insurance company
premium for the current
year
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
-
% avail. capital in net
premium
1
NON-LIFE INSURANCE
-46.440.819
197.950.118
23,5
21.201.948
125.297.062
16,9
2
LIFE INSURANCE
71.148.908
376.271
18.909,0
15.952.202
63.610.593
25,1
TOTAL ZM d.d.
24.708.089
198.326.389
12,5
37.154.150
188.907.655
19,7
B U S I N E S S
R E P O R T
57
16. Available capital of insurance company in % of minimum capital
No.
1
INSURANCE
CLASS
2
insurance company
Minimum capital of
insurance company
% of available capital
in minimum capital
insurance company
Minimum capital of
insurance company
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
-46.440.819
71.148.908
TOTAL ZM d.d.
24.708.089
368.547
in minimum capital
-12.601,1
21.201.948
15.889.968
133,4
-
15.952.202
13.123.702
121,6
6.704,2
37.154.150
29.013.670
128,1
368.547
17. Available capital of insurance company in % of net technical provisions
No.
1
INSURANCE
CLASS
2
insurance company
technical provisions
in provisions
insurance company
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
-
in provisions
1
NON-LIFE INSURANCE
-46.440.819
282.265.441
16,5
21.201.948
146.081.432
14,5
2
LIFE INSURANCE
71.148.908
-242.840
-29.298,7
15.952.202
274.337.619
5,8
TOTAL ZM d.d.
24.708.089
282.022.601
8,8
37.154.150
420.419.051
8,8
18. Available capital of insurance company in % of receivables from reinsurance and technical provisions allocated for reinsurers
No.
1
INSURANCE
CLASS
2
insurance company
Receivables from
reinsurance and
allocated for
reinsurers
in minimum capital
insurance company
Receivables from
reinsurance and
allocated for reinsurers
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
-46.440.819
71.148.908
TOTAL ZM d.d.
24.708.089
68.234.909
-
68.234.909
68,1
21.201.948
-
15.952.202
36,2
37.154.150
in minimum capital
54.567.198
38,9
54.567.198
68,1
-
19. Net premium written in regard to average capital and technical provisions
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
% net premium
in capital and
provisions
Net insurance
premium written for
the current year
Average capital + TP
(1.1. + 31.12.) / 2
% net premium in
capital and provisions
Net insurance
premium written for
the current year
Average capital + TP
(1.1. + 31.12.) / 2
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
TOTAL ZM d.d.
197.950.118
313.298.924
63,2
125.297.062
163.632.631
76,6
376.271
10.559.734
3,6
63.610.593
296.684.311
21,4
198.326.389
323.858.659
61,2
188.907.655
460.316.943
41,0
20. Net premium with regard to average capital
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
Net insurance
premium written for
the current year
Average capital
(1.1. + 31.12.) / 2
% net premium with
regard to capital
Net insurance
premium written for
the current year
Average capital
(1.1. + 31.12.) / 2
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
TOTAL ZM d.d.
% net premium with
regard to capital
197.950.118
34.997.395
565,6
125.297.062
25.875.557
484,2
376.271
10.416.783
3,6
63.610.593
43.835.554
145,1
198.326.389
45.414.178
436,7
188.907.655
69.711.110
271,0
21. Average net technical provisions in regard to net income from insurance premium
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
TOTAL ZM d.d.
Average TP
(1.1. + 31.12.) / 2
Net income from
insurance premium
% provisions in net
premium
Average TP
(1.1. + 31.12.) / 2
Net income from
insurance premium
% provisions in net
premium
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
278.301.530
151.898.400
183,2
137.757.075
120.429.563
114,4
142.951
36.568.198
0,4
252.848.758
63.721.088
396,8
278.444.481
188.466.598
147,7
390.605.833
184.150.651
212,1
B U S I N E S S
R E P O R T
58
22. Capital with regard to net unearned premium
No.
1
INSURANCE
CLASS
2
Insurance company
capital
Net unearned
premium
% capital in net
unearned premium
Insurance company
capital
Net unearned premium
% capital in net
unearned premium
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
1
NON-LIFE INSURANCE
27.124.158
65.975.643
41,1
25.327.912
55.325.168
45,8
2
LIFE INSURANCE
11.448.111
59.039.245
19
43.680.493
830.672
5.258
TOTAL ZM d.d.
38.572.269
125.014.888
30,9
69.008.405
56.155.840
122,9
23. Capital in regard to liabilities
No.
1
INSURANCE
CLASS
2
Insurance company
capital
Liabilities
% of capital in all
liabilities
Insurance company
capital
Liabilities
% of capital in all
liabilities
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
1
NON-LIFE INSURANCE
27.124.158
-
25.327.912
259.102.296
9,8
2
LIFE INSURANCE
11.448.111
87.149
13.136,3
43.680.493
349.055.649
12,5
TOTAL ZM d.d.
38.572.269
53.366
72.278,6
69.008.405
603.814.160
11,4
24. Net technical provisions in regard to liabilities
No.
1
INSURANCE
CLASS
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
Net technical
provisions
Liabilities
% provisions in total
liabilities
Net technical
provisions
Liabilities
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
282.265.441
TOTAL ZM d.d.
-242.840
87.149
282.022.601
53.366
% of provisions in
total liabilities
-
146.081.432
259.102.296
56,4
278,6
274.337.619
349.055.649
78,6
##########
420.419.051
603.814.160
69,6
-
25. Net mathematical provisions with regard to net technical provisions
No.
1
INSURANCE
CLASS
2
% MP of all
provisions
Net mathematical
provisions
Net technical
provisions
% MP of all provisions
Net mathematical
provisions
Net technical provisions
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
TOTAL ZM d.d.
902
261.853.047
420.419.051
62
26. Gross premium written in regard to the number of regular employees
No.
1
INSURANCE
CLASS
2
TOTAL ZM d.d.
Gross premium
written for the
current year
Average number
of employees
(1.1.+31.12) / 2
Amount of gross
premium per
employee
Gross premium
written for the
current year
Average number
of employees
(1.1.+31.12) / 2
Amount of gross
premium per
employee
from 1.1. to
31.12.2008
from 1.1. to
31.12.2008
in 2008
from 1.1. to
31.12.2007
from 1.1. to 31.12.2007
in 2007
3
4
5=3/4
3
4
5=3/4
1.602.022.054
3.203.793
500
B U S I N E S S
R E P O R T
59
234.347.904
876
267.520
FINANCIAL REPORT OF
ZAVAROVALNICA MARIBOR D.D.
2008
F I N A N C I A L
R E P O R T
60
FINANCIAL REPORT
Balance sheet
Income statement
Cash flow statement
Statement of changes in equity
63
63
64
66
1.
STATEMENT OF MANAGEMENT RESPONSIBILITY
67
2.
INTRODUCTORY NOTES AND ACCOUNTING POLICIES
68
2.1
2.2
2.3
2.4
68
68
71
73
3.
Consolidation Statement of Compliance
Correction of Error From Previous Years
Summary of Significant Accounting Policies
RISK MANAGEMENT
86
3.1
3.2
3.3
86
93
94
Insurance Risk
Capital and Capital Adequacy Risk
Financial Risks
4.
SEGMENT REPORTING
99
5.
NOTES TO FINANCIAL STATEMENTS 103
5.1 Intangible Assets 5.2 Land, Buildings and Equipment – Tangible Fixed Assets
5.3 Investment Property
5.4 Investments in Dependent Entities
5.6 Assets of Reinsurers and Co-insurers
5.7 Receivables from Insurance Transactions 5.8 Deferred Receivables and Liabilities for Tax
5.9 Other Assets 5.10 Non-Current Assets Held for Sale 5.11 Cash and Cash Equivalents 5.12 Capital
5.13 Subordinated Debt
5.14 Insurance Contracts Liabilities
5.15 Provisions for Other Liabilities and Charges
5.16 Liabilities from Direct Insurance Operations
5.17 Tax Liabilities
5.18 Other Liabilities 5.19 Insurance Premium Revenues 5.20 Financial Income and Expenses
5.21 Other Operating Income 5. 22 Expenses from Policyholder Claims and Benefits Incurred
5.23 Expenses from Changes of Insurance Contracts Liabilities
5.24 Operating Costs 5.25 Other Operating Expenses 5.26 Income Tax
5.27 Net earnings per share
5.28 Capital Flow and Distributable Profit
5.29 Potential Receivables and Liabilities
5.30 Related Party Transactions 5.31 Vents After the Balance Sheet Date
103
104
106
107
111
111
112
113
113
114
115
116
117
123
123
124
124
125
127
129
130
132
133
134
134
135
135
136
136
139
F I N A N C I A L
R E P O R T
61
Balance sheet
in
EUR
Notes
ASSETS
A INTANGIBLE ASSETS
1.Intangible assets
2.Deferred acquisition costs
B LAND, BUILDINGS AND EQUIPMENT
1.Land and buildings
2.Equipment and inventories
C INVESTMENT PROPERTY
D INVESTMENTS IN DEPENDENT AND ASSOCIATED UNDERTAKINGS
E FINANCIAL INVESTMENTS
1.Financial investments at fair value through profit/loss
3.Loans
4.Financial investments available for sale
H REINSURERS' AND COINSURERS' ASSETS
1.Reinsurance share of unearned premium
2.Reinsurance share of provisions for claims outstanding
3.Reinsurance share of other provisions
I
INSURANCE RECEIVABLES
1.Receivables from insurance operations
2.Receivables from coinsurance and reinsurance
K OTHER ASSETS
L NON-CURRENT ASSETS HELD FOR SALE
M CASH AND CASH EQUIVALENTS
TOTAL ASSETS
LIABILITIES AND EQUITY
A EQUITY
1.Share capital
2.Capital reserves
3.Reserves from profit
4.Retained profits (loss)
5.Fair value reserve
6.Profit or loss for the period
B SUBORDINATE LIABILITIES
D INSURANCE CONTRACT LIABILITIES
1.Gross unearned premiums written
2.Mathematical provisions
3.Provisions for claims outstanding
4.Gross provisions for bonuses and rebates
5.Other gross technical provisions
E OTHER FINANCIAL LIABILITIES
F
G LIABILITIES FROM DIRECT INSURANCE OPERATIONS
Liabilities to policyholders
Liabilities to insurance brokers
Liabilities arising from coinsurance and reinsurance
Other liabilities from insurance operations
H DEFERRED TAX LIABILITIES
I
INCOME TAX LIABILITIES
J
OTHER LIABILITIES
TOTAL LIABILITIES AND EQUITY
1
2
3
4
5
6
7
9
10
11
12
13
14
15
16
8
17
18
Income statement
F I N A N C I A L
R E P O R T
63
as at
31.12.2008
from 1.1. to
31.12.2007
corrected
10.957.977
480.708
10.477.269
13.069.824
9.885.516
3.184.308
774.591
0
463.116.863
46.781.710
61.436.542
354.898.611
68.525.279
16.367.283
52.080.702
77.294
66.308.045
41.038.809
25.269.236
2.087.246
9.451.834
648.607
634.940.266
6.509.487
489.496
6.019.991
13.430.181
10.461.955
2.968.226
858.401
9.362.547
461.186.234
37.684.067
56.865.013
366.637.154
54.611.601
17.005.871
37.605.730
0
53.812.793
42.218.727
11.594.066
3.380.807
74.605
587.505
603.814.160
54.973.434
28.426.181
2.811.907
14.134.023
4.073.152
4.445.463
1.082.708
19.833.765
507.718.145
76.187.236
269.881.551
156.965.995
210.246
4.473.117
0
3.097.830
29.462.695
12.376.227
1.680.434
13.633.660
1.772.373
847.854
1.743.146
17.263.397
634.940.266
69.008.404
28.426.181
2.811.907
12.424.948
2.118.253
21.272.217
1.954.899
12.093.800
475.030.651
73.161.710
261.853.047
135.873.602
320.491
3.821.800
0
2.936.356
25.123.360
9.461.182
1.876.945
12.003.089
1.782.144
6.107.811
1.215.945
12.297.832
603.814.160
v EUR
A
B
C
Notes
INSURANCE PREMIUMS
1.Gross premiums written
2.Reinsurance and co-insurance share in gross premium
3.Premiums written from reinsurance operations
4.Net premiums written (1 + 2 + 3)
5.Change in gross unearned premium
6.Change in unearned premium for reinsurance and coinsurance share
Net earned premiums ( 4 + 5 + 6 )
E
F
G
from 1.1. to
31.12.2007
corrected
19
251.844.571
-60.242.429
13.801.609
205.403.752
-2.423.515
-627.431
202.352.807
234.347.905
-59.201.652
13.761.404
188.907.657
-6.453.576
1.696.571
184.150.652
FINANCIAL INCOME
Financial income
20
27.124.159
42.870.631
OTHER OPERATING INCOME
Other income from business operations
21
962.681
2.805.101
230.439.646
229.826.384
190.870.588
-71.148.908
-4.902.494
114.819.186
21.186.216
138.625.369
-34.116.333
-5.617.388
98.891.647
17.555.760
-14.568.795
-5.522.170
22
121.436.607
110.925.237
23
12.126.812
612.041
651.317
0
13.390.170
42.767.115
433.062
-147.152
-231.804
42.821.221
24
24
25
25
14.449.703
46.068.115
2.404.872
3.076.995
65.999.686
14.724.263
44.466.257
2.279.289
5.308.042
66.777.850
20
23.581.357
2.989.961
224.407.820
6.031.827
3.681.850
441.806
223.514.270
6.312.114,29
2.114.950
-41.832
3.240.044
2.791.783
0,41
2.156.782
4.155.332
0,61
TOTAL NET INCOME
D
from 1.1. to
31.12.2008
CLAIMS AND BENEFITS INCURRED
1.Gross claims paid
2.Reinsurances and co-insurances share in gross claims
3.Recourse written in gross claims
4.Net claims paid (1 + 2 + 3)
5.Change in gross provisions for claims outstanding
Change in provisions for claims outstanding for reinsurers’ and co-insurers’
6.
share
Net claims and benefits incurred (4 + 5 + 6)
CHANGE IN INSURANCE AND FINANCIAL CONTRACT PROVISIONS
1.Change in mathematical provisions
2.Change in net provisions for bonuses in rebates
3.Change in gross provisions for unexpired risks
4.Change in other net technical provisions
Change in insurance contract povisions (1 to 5)
OTHER COSTS AND EXPENSES FROM BUSINESS OPERATIONS
1.Brockerage fees/commissions
2.Operating expenses
3.Other insurance expenses
4.Other expenses
Costs and expenses from business operations ( 1 do 4 )
FINANCIAL EXPENSES (1 to 4)
Financial expenses ( 1 to 4 )
TOTAL NET EXPENSES
Profit or loss before tax
Corporate income tax
Deferred tax
INCOME TAX EXPENSES
Net profit or loss
Net earnings per share (basic and dilluted)
26
27
Cash flow statement
F I N A N C I A L
R E P O R T
64
in
Notes
EUR
A. Cash flow from operating activities
a.) Income statement items
1. Net written insurance premiums for the period
2. Investment return
Other income from ordinary operations (except for revaluation and less reduced
3.
provisions) and financial income from receivables
4. Net claims paid for the period
5. Expenses from insurance contract provisions
Net operating expenses less depreciation and less changes in deferred
6.
acquisition costs
Other expenses from ordinary activities less depreciation (except for revaluation
7.
items and less increase of provisions)
8. Corporate income tax and other taxes not included in operating expenses
Changes in net current assets (and deferred items and deferred receivables
b.)
and tax liabilities) of operating balance sheet items
1. Change in operating receivables
2. Change in deferred costs and accrued revenues
3. Change in deferred tax receivables
4. Change in assets held for sale
5. Change in inventories
6. Change in operating trade payables
7. Change in accrued costs and deferred liabilities and provisions
8. Change in deferred tax liabilities
c.) Cash flows from operating activities (a + b)
B. Cash flows from investing activities
a.) Investment receipts
1. Inflows from interests relating to investment activities
2. Inflows from participation in other's profit
5. Inflows from disposal of investment property
6. Inflows from disposal of investments in associated undetakings
7. Inflows from disposal of financial investments
b.) Investment expenditure
1. Outflows for acquisition of non-tangible assets
2. Outflows for acquisition of tangible fixed assets
4. Outflows for acquisition of investments in associated undertakings
5. Outflow for acquisition of financial investments
c.) Cash flow from investing activities (a + b)
C. Cash flows from financing
a.) A Receipts from financing
2. Inflows from received long-term loans
b.) B Financing expenditure
1. Outflows for granted interests arising from financing
5. Outflows for payment of dividends and other profit participation
c.) Cash flow from financing (a + b)
y.) Opening balance of cash and cash equivalents
x.) Cash flow for the period (sum of Ac+Bc+Cc)
Č. Closing balance of cash and cash equivalents
11
F I N A N C I A L
R E P O R T
65
from 1.1. to
31.12.2008
from 1.1. to
31.12.2007
17.464.129
202.352.807
2.079.960
33.282.283
184.150.652
19.809.239
4.584.761
5.346.585
-121.436.607
-1.263.358
-110.925.237
54.106
-62.357.229
-59.543.689
-2.814.355
-3.494.422
-3.681.850
-2.114.950
-20.958.102
5.109.788
-11.078.999
-276.387
-224.586
58.464
-9.377.229
-12.266
6.379.571
-1.414.006
-5.178.787
-3.493.973
-74.605
20.085
5.112.292
1.626.867
-1.408.729
38.392.070,62
255.430.286
18.171.822
1.892.523
38.230
9.362.547
225.965.165
-258.062.193
-4.576.116
-1.486.510
337.795.979
16.822.799
1.203.624
72.835
319.696.721
-373.421.998
-306.463
-1.091.480
-9.226.359
-251.999.567
-362.797.696
-2.631.906 -35.626.019,42
7.000.000
7.000.000
-813.019
-813.019
6.186.981
587.505
61.102
648.607
-2.751.830
-589.830
-2.162.000
-2.751.830
573284
14.221
587.505
66
F I N A N C I A L
R E P O R T
Accounting Sector
Anton Vadnjal
Executive Director
Maribor, 6. 5. 2009
Profit
Closing balance as at 31. 12. 2008
Distribution of net profit to other capital
accounts pursuant to MB and SB resolution
Change in credit risk equalisation reserves
Distribution of net profit according to the
General Assembly resolution
Change in fair value of financial assets
Closing balance at 31. 12. 2008
Entry of net profit or loss for the financial
year 2008
Differences due to correction of error
IAS 8
Balance at 1. 1. 2007
Entry of net profit or loss for the financial
year 2007
Change in fair value of financial assets
Distribution of net profit to other capital
accounts pursuant to MB and SB resolution
Change in credit risk equalisation reserves
Payment of dividends
Payment of bonuses to Supervisory Board
members
28
Notes
0
0
0
0
0
0
0
0
0
0
28.426.181 2.811.907
28.426.181 2.811.907
0
0
28.426.181 2.811.907
Share
capital
3.642.151
799.533
2.842.618
0
0
0
0
0
0
2.842.618
1. Statutory
reserve
I. Called-up II. Capital III. Reserves
capital
surplus
from profit
1.143.317
909.542
233.775
0
233.775
0
0
0
Reserves
for risk
equalisation
V. Net profit/loss
brought forward
287.783
0
0
0
0
-3.686.526
0
9.348.555
4.445.463
-16.826.753
9.348.555 21.272.217
0
0
0
5.595.109
0
0
4.073.152
4.073.152
1.954.899
2.118.253
-31.000
0
-518.242
-3.634.697
0
0
5. Other
Net profit/loss
reserves
brought forward
from profit
3.753.446 24.670.960
6.302.192
IV . Fair
value
reserve
1.082.708
1.082.708
-1.954.899
-799.533
-909.542
2.791.783
2.791.783
5.155.860
54.973.434
0
0
0
-16.826.753
69.008.404
42.249
-62.000
0
-2.100.000
0
-3.686.526
4.400.867
70.413.815
Total capital
1.954.899
-245.534
-31.000
-233.775
-1.581.758
-1.960.412
0
4.400.867
1.606.512
1. Net profit
for the year
VI. Net profit/loss
for the year
Statement of changes in equity
1.
STATEMENT OF MANAGEMENT RESPONSIBILITY
The Company’s Management Board is responsible for preparing the annual report in such a way that the
annual report represents a true and fair view of the Company’s financial situation and its economic outturn for
the business year which ended on 31 December 2008.
In accordance with its responsibility for preparing accounting statements, the Company’s Management Board
hereby declares that in compiling these Accounting Statements it has referred to the relevant evaluations,
estimates and assumptions affecting the selected policies and the stated values of assets and liabilities,
revenues and expenditures. The estimates and the assumptions are based on experience and several other
factors, including actuarial evaluations, which in the specific circumstances identify the methods most suitable
for the Company, thus guaranteeing an honest representation of the Company’s assets, liabilities, revenues
and expenditures for 2008.
The Management Board hereby confirms that these Accounting Statements and Notes have been prepared on
the assumption of ongoing Company’s operations and in accordance with the legislation currently in force and
International Financial Reporting Standards.
In accordance with its responsibility, the Company’s Management Board hereby declares that it has taken
appropriate measures to protect the Company’s property and to prevent and detect fraud and other irregularities
and illegal activities.
The Management Board is unaware of any circumstance that might cause additional tax liabilities upon a
control by the tax authority which is allowed to inspect the operations of the Company anytime within five years
from the date on which tax should have been levied.
Zavarovalnica Maribor is signatory to the Insurance Code that was adopted by most national insurance
companies and entered into force on 1 July 2004.
Drago Cotar,
Chairman of the Management Board
Srečko Čebron,
Deputy Chairman of the Management Board
Marko Planinšec,
Member of the Management Board
David Kastelic,
Srečko Čarni,
F I N A N C I A L
R E P O R T
67
2.
INTRODUCTORY NOTES AND ACCOUNTING POLICIES
These annual Accounting Statements relate to the annual period ending on 31 December 2008. The period of
financial reporting coincides with the calendar year. Data for the comparative period (2007) were amended in
accordance with IAS 8 as explained in continuation. In 2008 the Company changed the auditing company. In
2007 the audit was carried out by the auditing company BDO EOS revizija d.d., whereas in 2008 it was carried
out by the auditing company KPMG d.d.
The Accounting Statements contain all items that are sufficiently important to influence the estimates and the
decisions of the persons concerned.
The Company reclassified some items in the balance sheet and to this end adjusted comparative values of the
previous period. Changes apply to the inclusion of accruals among other assets and other liabilities and the
transfer of current accruals of non-life insurance acquisition costs to intangible assets.
The Accounting Statements were approved to be published by the Management Board on 15 June 2009.
2.1
Consolidation
In 2007 the Company compiled also consolidated financial statements, wherein it simultaneously consolidated
the 100 percent owned company Velebit usluge d.o.o. and insurance companies Velebit Osiguranje d.d. and
Velebit životno osiguranje d.d., controlled indirectly through a limited liability company.
On account of demonstrated capital inadequacy, Zavarovalnica Maribor d.d. signed an agreement on disposal
of participating interests and members of supervisory boards of both insurance companies submitted their
resignation. On 31 December 2008 there are thus no more elements of controlling subsidiary companies and
the consolidated annual report is not compiled anymore.
Financial statements of Zavarovalnica Maribor d.d. are not included in any consolidated statements.
2.2
Statement of Compliance
Financial statements of the Company, including the explanatory notes to the financial statements have been
prepared in compliance with the International Financial Reporting Standards (hereinafter IFRS), as adopted
by the International Accounting Standards Board (IASB), and in compliance with the interpretation of the
International Financial Reporting Interpretations Committee (IFRIC), as adopted by the European Union.
When compiling financial statements, the Company did not follow the new standards (IFRS) and modifications
of standards and interpretations (IFRIC) presented in continuation, which had already been published, but
were still not in force in the European Union for the business year ending on 31 December 2008. The Company
decided against their early application.
Amendments to IFRS 2 Share-based payment (in force from 1 January 2009) clarify the term »vesting
conditions« and introduce the concept of »non-vesting conditions« (non-guaranteed) conditions. Features of
a share-based payment that are not vesting conditions should be included in the grant date fair value of the
share-based payment, while failure by the entity or the counterparty to meet the non-vesting condition will be
treated as a cancellation. Amendments to IFRS 2 do not affect the Company’s business operations as it does
not have a bonus system in the form of interests.
Revised IFRS 3 Business Combinations (in force from 1 July 2009) broadens the definition of the notion
‘transaction’ and also includes several other changes, including:
•
all components of a payment transferred by the acquirer are established and measured in accordance
F I N A N C I A L
R E P O R T
68
•
•
•
with the fair value on the acquisition date, including amounts for which payment depends on future
events;
ex-post changes of amounts for which payment depends on future events are established in the Profit
and Loss Account;
costs of transfer, with the exception of costs of issuing shares and costs of issuing debt instrument, are
treated as expenses on the date of inception;
the acquirer may opt to measure the non-controlling interest either at fair value on the acquisition date
(full ‘goodwill’ value), or according to the proportionate interest of fair value of the acquired identifiable
assets and debt.
Amended IFRS 3 is irrelevant for business transactions of the Company as the Company holds no such
interests which the aforementioned amendment could affect in dependent entities.
IFRS 8 Operating segments (in force from 1 January 2009) is introducing a new management approach« to
reporting by segments. IFRS 8, which Zavarovalnica Maribor d.d. will have to take into consideration when
preparing the financial statements for financial year 2009, lays down disclosures by segments on the basis
of internal reports that will be regularly checked by the Chief Operating Decision Maker of the Company in
order to evaluate the performance of each segment and allocate funds to them. At present, Zavarovalnica
Maribor d.d. discloses information on segments per area segment (see explanation in Chapter 3).
Amendments to IFRS 1 Presentation of Financial Statements (in force from 1 January 2009) require data
in financial statements to be collated on the basis of common characteristics. ‘Total profit statement’ is also
being introduced. Items of costs and expenses as well as components of remaining total profit are indicated
either in the total profit statement (which covers the Profit and Loss Account and all non-equity changes in
the capital) or in two separate statements (Profit and Loss Account and total profit statement). The Company
is still deliberating whether to compile two separate statements or only the total profit statement for business
year 2009.
The amended IAS 23 ‘Borrowing Costs’ (in force from 1 January 2009) no longer offers the possibility to
recognise borrowing costs as expenditure and requires that the company capitalise the borrowing costs that
can be directly ascribed to the purchasing, construction or manufacturing of assets in procedure as part of
the purchasing price of the same assets. The Company does not expect the amended standard to have an
impact on its financial statements.
Amendment to IAS 27 Consolidated and Separate Financial Statements (in force from 1 January 2009)
contains definition of ‘cost method’ currently indicated by IAS 27; instead, all dividends of the dependent entity,
jointly controlled company or associated company are recognised as revenue in individual financial statements
of the investor when the right to dividend payment is exercised. The amendment will affect the Company’s
individual financial statements as dividends will be recognised already beforehand and not only upon payment.
The Company does not compile consolidated financial statements.
Amended IAS 27, Consolidated and Separate Financial Statements (in force from 1 July 2009) discuss
with the term ‘minority interest’, which can be replaced with the term ‘non-controlling interest’, and is defined
as the ‘capital share’ in an dependent entity which is not owned by the controlling company either directly
or indirectly. Furthermore, the amended standard changes the handling of non-controlling interest, loss of
dependent entity control as well as allocation of profit or loss and remaining total profit between controlling
and non-controlling interest. Amended IAS 27 is irrelevant for business transactions of the Company as the
Company holds no such interests, which the aforementioned amendment could affect, in dependent entities.
Amendments to IAS 32 Financial Instruments: Disclosure, and IAS 1: Presentation of Financial
Statements (in force from 1 January 2009) introduce an exemption from the principle used as a rule within the
context of IAS 32 in connection with allocation of instruments as equity; the change enables certain realisable
F I N A N C I A L
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69
instruments issued by a company and usually classified as liabilities to be classified as equity, but only if certain
conditions are met. Amendments are irrelevant for the Company as it has not issued realisable instruments in
the past.
Amendment to IAS 39, Financial Instruments: Recognition and Measurement (in force from 1 July 2009)
describes in detail the use of existing principles which determine whether special cash flow risks or cash
flow components reflect hedging relationship. For hedging relationship to be reflected, risks or components
must be recognised and measured separately; however inflation rate cannot be determined except in limited
circumstances. The Company has not finished analysing the effect of this amendment yet.
IFRIC 13 Customer Loyalty Programmes (in force from 1 July 2008) refers to accounting practices in
companies that offer or participate in any way in customer loyalty programmes. The principle applies to those
customer loyalty programmes whereby customers gain a right to an award, such as goods or services free of
charge or at a discounted price. We do not expect
IFRIC 13, which Zavarovalnica Maribor d.d. will have to take into account when preparing financial
statements for 2009, to have an impact on its financial statements.
IFRIC 15 Agreements for Construction of Real Estate (in force from 1 January 2009) specifies that revenue
arising from agreements on construction of real estate are recognised in relation to the stage of completion of
contract activity in cases when the agreement corresponds to the definition of the agreement on construction
works in accordance with IAS 11.3, when the agreement is valid only for implementation of services in
accordance with IAS 18 (e.g. the Company does not need to supply construction materials), and when the
agreement is intended for sale of goods and revenues are recognised during construction in accordance with
provisions of IAS 18.14. In all other cases revenues are recognised when all conditions for revenue recognition
as determined by IAS 18.14 (e.g. after completed construction or after supply) are met. Interpretation IFRIC
15 is irrelevant for the Company as it does not carry out construction of real estate and does not develop real
estate for sale.
IFRIC 16 Protection of Hedged Net Financial Investments in a Company Abroad (in force from 1 October
2008) specifies the type of risk to be insured against and which company in the group may hold an item
insured against the risk, clarifies whether consolidation method affects effectiveness of protection, and also
clarifies the form assumed by the protection instrument and amounts reclassified from capital to the Profit and
Loss Account after termination of business transactions abroad. Interpretation IFRIC 16 is irrelevant for the
Company as it has no such investments in its portfolio.
FRIC 17 Payments of Non-Monetary Assets to Owners (in force from 15 July 2009) – interpretation applies
for unilateral payments of non-monetary assets to owners. In accordance with the interpretation, dividend
payment liability is recognised when the dividend is duly approved and is no longer the subject of the company’s
evaluation and is measured at fair value of paid asset. Accounting value of the dividend is measured again on
the date of reporting and the change in accounting value is recognised. As the interpretation is valid only from
the date of use on, it will not affect financial statements for periods prior to the date of adoption of interpretation.
Interpretation also refers to future dividends which will be the subject of evaluation of the Management Board/
partners, therefore it is impossible to assess the effect of this interpretation.
Bases for Compiling Financial Statements
The Company’s financial statements represent individual financial statements prepared on the assumption of a
going concern by taking into account original value of items. Fair value of reported items is taken into account
with financial assets measured at fair value and with financial assets available for sale. Financial statements,
excluding cash flow statement, are prepared in accordance with the accruals principle.
F I N A N C I A L
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70
Annual Report Adoption Procedure
Annual Report is adopted by the Management Board of the Company, which submits it for approval to the
Supervisory Board. The Management Board and the Supervisory Board also decide on disposition of net profits
for creation of the Company’s reserves according to provisions of the Public Utilities Act. Such disposition
of profits is included in statements of the current year, whereas the Company’s Assembly determines the
distribution of distributable profit.
Functional and Reporting Currency
Reporting and functional currency is the euro. The financial statements have been prepared in EUR, rounded
off to the nearest full number. Due to rounding off of data, differences can occur in calculation.
The Use of Estimates and Judgements
The preparation of financial statements in accordance with the IFRS requires management to make judgments,
estimates and assumptions that affect the use of accounting policies and the disclosed values of assets, liabilities,
income and expenditure. The actual figures may differ from these estimates. Estimates and assumptions
are based on previous experience and many other factors taken into account in given circumstances as
well-grounded, on the basis of which judgments on accounting values of assets and liabilities, which are
not immediately evident in other sources, can be given. The actual figures may differ from these estimates.
Adjustments of accounting estimates are recognised only for the period in which the estimate is corrected if it
affects only that period, or for both the period in which adjustment is done and for future years if the adjustment
affects both the current as well as future years.
Changes in Accounting Principles
In 2008 there were no changes to accounting principles compared to the preceding period.
Translation of Events
Transactions in foreign currencies are translated into the functional currency at the related exchange rate from
the reference exchange rates of the European Central Bank, published by the Bank of Slovenia, valid on the
day of the transaction. Exchange-rate differences calculated in such manner are recognised in the Profit and
Loss Account.
Asset and liability items, denominated in foreign currency, are translated at the related exchange rate from
the reference exchange rates of the Bank of Slovenia. Exchange-rate differences arising from the related
calculations are recognised in the Profit and Loss Account.
2.3
Correction of Error From Previous Years
During the procedure of reviewing the Company’s business operations by the Insurance Supervision Agency,
it was established that some insurance contracts for life insurances, in which the insured assumed investment
risk (unit-linked life insurance), had not been maintained in accordance with provisions regarding insurance
requirements for costs, which were published on insurance contracts. In the stage of conducting the review, the
supervisor demanded an adjustment of amounts for the entire time of validity of these contracts. The Company
recalculated non-current liabilities and paid differences of assets in mutual funds in 2009 as is explained in
clarification 31) Events After the Balance Sheet Date. New technical bases, taking into account the facts with
regard to documents given to insured persons upon conclusion of insurance, have also been prepared.
Due to the fact that contracts were concluded already in 2007, provisions of IAS 8 (Accounting Policies,
Changes in Accounting Estimates and Errors) were taken into account and data from the comparative year
2007 were adjusted as correction of error everywhere.
F I N A N C I A L
R E P O R T
71
The Company corrected the error in financial statements by recalculating every involved item in financial
statements for 2007. Changes refer entirely to the reporting part of life insurances and more particularly to
insurances with assumed investment risk (unit-linked).
In 2008 the Company also corrected the error related to classification and valuation of some structured debt
securities from abroad with stock option. It transferred them entirely from the financial assets available for
sale to financial assets valued through the Profit and Loss Account. In the procedure of error correction, it
eliminated (negative) fair value reserves in capital and increased expenses debited to the Profit and Loss
Account for 2007.
Correction of the error also affected change of net earnings per share in 2007. Thus net earnings per share
after correction amount to EUR 0.610 (EUR 0.646 prior to correction).
The following items in the Balance Sheet and the Profit and Loss Account were corrected after recalculation
of amounts for 2007:
31. 12. 2007
in EUR, rounded
Original data
Balance sheet
Deferred acquisition costs
Mathemathical provisions
Accruals and deferred
income
Profit / loss for the period
Fair value reserve
Deferred tax liabilities
Financial assets through
profit/loss
Financial assets available
for sale
Un-invoiced (deferred)
income
Deferred tax receivables
Profit / loss for the period
Profit and loss account
Brokerage commissions
Change in mathematical
provisions
Unrealised losses from
investments
Unrealised gains from investments
Net profit/loss
Correction of error
equity and
liabilities
assets
37,429 assets
After correction of error
equity and
liabilities
equity and
liabilities
assets
2,184,999 0
33,923,297
31,830,165 2,093,132
31,552 -31,552
0
2,200,433 20,984,433 6,131,653 123,419
287,783
46,747
2,323,852
21,272,217
6,178,400
29,198,425 8,485,641 375,288,756 165,961 105,011 expenses
16,940,813 -34,423 2,323,852 income
expenses
-2,216,550 18,689,826 2,093,132 1,044,697 372,844 2,253,258 -372,844
167,927 -9,024,446
4,400,867
70,588 1,954,899
Income
-368,953 income
3,891 368,953
F I N A N C I A L
R E P O R T
72
123,418
2,257,149
4,155,332
2.4
Summary of Significant Accounting Policies
Accounting policies presented in continuation are consistently applied by the Company in all periods indicated
in enclosed annual financial statements.
Intangible Assets
Intangible assets are stated at cost less accumulated depreciation and any impairment losses. Cost includes
the purchase price and any costs directly attributable to the acquisition. Subsequent to their initial recognition,
intangible assets are valued by the Company on the basis of the Cost Method. An intangible item is no longer
depreciated upon derecognition or when no future economic benefits are expected to arise from the continued
use of the asset.
Subsequent expenditure related to intangible long-term assets is recognised as operating expense of the
reporting period. Subsequently incurred expenditure is stated as an increase in the acquisition value of an
intangible asset if it contributes to an increase in its future benefits, or as a decrease in the value adjustment
if it prolongs its useful life.
The depreciation of intangible assets is calculated by applying the straight-line depreciation method, over the
useful life of the assets. Depreciation begins when such assets are available for use. All intangible assets of
the Company have finite useful life.
In the reporting period, the following depreciation rates were applied:
•
•
software licences
other intangible assets
from 20 to 25 per cent
from 5 to 25 per cent
Disclosed intangible assets are impaired when their net replacement value exceeds their book value. In the
event of impairment, the carrying amount of the asset is decreased to its net replacement value and at the
same time expenditure arising from impairment is recognised directly in the Profit and Loss Account.
The Company also discloses deferred acquisition costs, which represent contract commissions paid in advance,
under intangible assets. The Company will transfer them to expenses in the period, in which revenues arising
from premiums, based on which the Company calculated deferred expenses, will be recognised.
Property, Plant and Equipment
Property, plant and equipment are initially recognised at cost including directly attributable cost of acquisition.
Following initial recognition, property, plant and equipment is stated at cost less accumulated depreciation and
any impairment in value. Due to their non-finite useful life, items of property are not subject to depreciation. The
acquisition price of some key business buildings was divided into smaller individual items having different useful
lives and depreciation periods. Licensed software that has to be bought with new hardware thus guaranteeing
its functionality is activated as part of the equipment.
The costs of business premises that make part of a building (condominium) also comprises the value of the
functional land of the building.
Subsequent expenditure related to tangible assets is recognised as an operating expense in the accounting
period in which it is incurred. Subsequent expenditure on an item of property, plant and equipment, incurring
during its use and increasing its future economic benefits, is stated as an increase in cost. Subsequent
expenditure resulting in the extension of the useful life of an item of property, plant and equipment is stated as
a reduction in the valuation adjustment.
Depreciation of plant and equipment of the Company is calculated on a monthly basis by applying the straightline depreciation. Depreciation commences when such assets are available for use. Every year an impairment
test is carried out on these assets. In the event of impairment, the accounting value of such an asset is
F I N A N C I A L
R E P O R T
73
decreased to its net replacement value and expense arising from assets impairment is recognised directly in
the Profit and Loss Account.
•
•
•
•
•
plant and buildings parts of buildings of higher value
personal vehicles
other equipment small tools
3%
from 3 to 6 %
20 %
from 15 to 33.3 %
30 %
Investment Property
Investment property is property, held by the Company to earn rentals or for long-term investment appreciation
or both. Subsequent to its initial recognition, investment property is valued by the company on the basis of the
Cost Method.
Depreciation of investment property is calculated on a monthly basis by applying the straight-line depreciation
considering the useful life of individual item and/or the duration of the rent.
•
buildings
from 3 to 3.3 %
The Company leases the majority of its investment properties. The majority of leasing agreements are
concluded for a fixed period. All leasing agreements may be rescinded at any moment. Revenues arising from
leasing agreements are disclosed directly in the Profit and Loss Account under financial revenues.
Investment property is impaired when its accounting value exceeds its net replacement value. In the event of
impairment of investment property, accounting value of such assets is decreased to its net replacement value
and at the same time expense arising from assets impairment is recognised directly in the Profit and Loss
Account.
Financial Investments
Financial investments of an insurance company are its assets intended to meet its future liabilities arising from
insurances and to cover its possible loss resulting from insurance operations risks. A financial investment is
recognised as Company’s financial asset if there is an option of economic benefits related to it and it is possible
to measure its acquisition cost reliably.
With regard to the accounts they are arising from, financial investments are classified at their recognition under
one of the life insurance long-term business funds, or under non-life long-term business funds, or as assets
from available own sources of individual insurance groups.
The Company conducts recognition of financial investments on the day of trading. Upon acquisition financial
investments are also classified in one of the following groups:
•
•
financial investments at fair value through profit and loss. Financial assets measured according to
their fair value through profit and loss include all the financial instruments of life insurance long-term
business fund whereby the investment risk and all financial instruments with embedded derivatives
are assumed by the insured person. The Company holds no such financial instruments which would
be intended for active trading among financial assets measured at fair value. Revaluation effects of
such investments are included in the income statement for the current year. The fair value is based on
a quoted market price at the balance sheet date;
financial assets available for sale. Financial investments available for sale are financial assets held
by the Company for an indefinite period of time and which can be sold due to market conditions, due
F I N A N C I A L
R E P O R T
74
•
•
to important loss events which cannot be foreseen, due to investment structure, ensuring required
structure of investments, operational needs or other business reasons. The Company recognises
unrealised profits or losses arising from fair value change of financial assets as a separate item of
equity;
loans are loans and deposits with banks with fixed or determinable payments not quoted on an active
market. The Company measures them at amortised cost by using the effective interest rate. Financial
investments in loans also include money deposits;
The Company does not classify investments as financial assets held until maturity.
Derivative financial instruments are not used for hedging purposes
The Company discloses financial assets it holds with intention for trading (at fair value through the Profit and
Loss Account) and financial assets available for sale (at fair value through capital) at fair value. Loans and
deposits are disclosed at amortised cost according to the effective interest rate method decreased for potential
impairments.
The fair value of financial investment is determined as:
•
•
•
the price of a security, that is either listed on the market or belonging to the open market, as of balance
sheet date,
the amount as evident from a document published by a brokerage company or a bank on the last
known trading price of an unlisted but nevertheless traded security,
the amount as evident from a written offer or a public announcement of a buyer wishing to purchase
all or the majority of the securities in the possession of the Company.
The Company monitors flow of fair values of financial investments in capital instruments available for sale
according to their acquisition costs. It takes into account the following indications of circumstances which lead
to definitive impairment of value through the Profit and Loss Account:
• long-term reduction of fair value of instruments under their acquisition cost, whereby the period of
long-term reduction of fair value taken into consideration is the period of maximum 9 months from the
date when the fair value of capital instruments decreased under their acquisition cost for the first time
and remained lower for the entire period of 9 months;
• long-term reduction of fair value of instruments under their acquisition cost, whereby the period from
the first reduction of fair value lasts for more than two years and fair values in this period exceed their
acquisition costs only for a few days;
• more than 40 per cent reduction of fair value with regard to their original acquisition cost regardless of
duration of such reduction.
Receivables from Coinsurance and Reinsurance
The receivables from coinsurance and reinsurance include claims arising from anticipated long-term liabilities
from insurance contracts. The Company’s liability to such claims is based on concluded coinsurance and
reinsurance contracts, with which a proportion of the insurance risk was ceded to coinsurance and reinsurance
companies.
The Company carries out recognition of assets on the basis of received or own coinsurance or reinsurance
settlement of accounts, which it harmonises with partners.
The Company would consider as objective proof, on account of which it would diminish participation of others in
insurance contracts, repayment refusal or inability from the part of the co- or reinsurer with regard to reinsured
claims or retrocessions.
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Receivables
Receivables are recognised in the balance sheet at original amount less any impairment due to adjustment in
the amount of receivables. Initially, receivables are recognised on the basis of an issued insurance policy, an
invoice or other credible document (i.e. verified co- and reinsurance claim reports).
Since it can not be assumed that all receivables will be settled by their due date or in their full amount, the
Company calculates impairment loss. To this end, adjustments of the value of receivables are made and
accounting value is adjusted to expectations regarding their realisation. Adjustments of the value for receivables
are recognised by the Company directly in the Profit and Loss Account under revaluation charges.
Impairment of receivables from insured persons is carried out by the Company quarterly on the basis of
movement of receivables from insured persons in previous periods, and at the end of the year on the basis of
new recalculations for the cumulative three-year period.
Impairment of receivables from insured persons arising from non-life insurance operations is carried out on
the basis of individual assessment for the insured whose invoiced gross premium exceeds EUR 500,000.
Individual assessment is carried out also in the event of worsening of economic conditions for companies in
certain sectors, significant financial difficulties of companies, breach of contracts or failure to fulfil repayment
obligations. Flat-rate (collective) impairment is carried out for other receivables.
Individual assessment of fair, i.e. collectable value of receivables arising from insurance operations is carried
out on the basis of estimate of financial standing and solvency of the insured person based on credit rating
report, type and scope of insurance of individual insured person’s receivables and fulfilment of his obligations
towards the Company in previous periods.
Flat-rate (collective) assessment of fair, i.e. collectable, value of receivables arising from insurance operations
is calculated by the Company on the basis of taking into account the structure of receivables from insured
persons with similar credit risk. Indication of the necessary impairment is given with the fact that the amount of
premium payments is always lower than the amount of invoiced premium. The rate of non-payment of premium
is established on the basis of a three-year period average. The rate regarding the balance of receivables
is calculated as potential impairment, whereby receivables with maturity longer than 360 months (period of
limitation) are fully impaired (100 per cent impairment). The Company calculates the average three-year rate of
written-off receivables and receivables declared in receivership separately. For rates calculated in this manner
the Company conducts impairment of receivables balance within 360 days. The total amount is corrected by
the Company for the ratio of ex-post repayment. Ratio of probability of repayment and other relevant data
for potential corrections of estimated amounts for impairment are based on internal data, including data on
successful executions, repaid receiverships, repayments of receivables already written off, etc.
Receivables declared in receivership and receivables which are on account of their doubtful or disputed nature
subject of legal dispute and which are at the same not covered by mortgage insurance are impaired fully.
Impairment of receivables from insured persons arising from life insurances is carried out by the Company
after the insured person failed to settle three instalments of insurance premium. Receivables adjustment is
made in the full amount of unsettled receivable arising from insurance operations (100 per cent impairment).
Recourse receivables are recognised under assets if a substantial legal basis was obtained by the Company
for such claims (final judicial execution, concluded written contract with the insurer or debtor, commencement
of the debt repayment by the insurer or debtor, credit insurance subrogation). Recourse receivables are
recognised by the company only after establishing the actual existence and/or the physical presence of the
debtor, even in an event of subrogation. Recognising the principal of the recourse receivables among the
Company’s assets reduces its expenses for claims paid.
The Company conducts impairment of recourse receivables where it is reasonably assumed they will not be
settled or will not be settled in full. The Company makes a value adjustment of recourse receivables on the
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level of proceedings for recourse and this is chargeable to operating expenses for revaluation. The Company
conducts impairment of the principal, interests and judicial costs recognised in the recourse receivable
separately. Indication of impairment of recourse receivable for the recourse principle appears if the overdue
part of recourse receivable is not settled within 60 days after becoming due. Due to the nature of recourse
receivables, the Company in this case impairs the entire unpaid value of recourse principal, regardless of the
not yet due instalments of recourse receivable.
Accrued interests payable (instalments or on arrears) arising from recourse proceeding and recognised as
recourse receivables are fully impaired. Receivables arising from costs of recourse proceedings and recognised
as recourse receivables which are not settled within 30 days after becoming due are fully impaired by the
Company.
Written-off receivables are recognised on the basis of an estimate regarding impossibility of collectibility or
its uneconomical nature for the Company. The estimate is based on appropriate documentary evidence.
Written-off receivables are debited to revaluation adjustments of receivables values arising from impairment
procedures or directly to financial expenses of the Company.
Non-current Assets Held for Sale
Non-current assets held for sale are assets whose carrying amount will be recovered principally through a
sale transaction rather than through continuing use. For this to be the case the asset must be available for
immediate sale and its sale must be highly probable. Non-current assets held for sale are stated at the lower
of carrying amount and fair value less cost to sell or depreciation incurred until their decommissioning. All
changes to non-current assets held for sale are immediately recognised in the Profit and Loss Account. Noncurrent assets held for sale are not subject to depreciation.
Cash and Cash Equivalents
Cash is ready cash on hand and deposit money on current accounts of the Company. Cash equivalents are the
so-called overnight deposits with banks and receivables from cheques to be cashed immediately.
Capital
A company’s equity consists of its original capital (nominal capital), capital reserves, profit reserves, the
retained earnings and the current profit of the financial year.
The Company does not have statutory capital shares for non-life or life insurances. Disclosed allocation is
based on the ratio determined upon establishment of the Company in 1990 and content of later recapitalisations
of the Company.
Nominal capital is a liability to owners and does not become payable until dissolution of the Company. It
represents par value of paid-up ordinary shares denominated in EUR.
Capital reserves are formed and used in line with the Companies Act-1. Under capital reserves the Company
discloses only the amount of elimination of general revaluation adjustment of capital which was made during
statutory revalorisation of capital.
Profit reserves are recognised on the basis of:
•
•
•
the Insurance Act, which prescribes creation of credit insurance equalisation reserves classified under
other profit reserves;
the Companies Act, which prescribes creation in special cases (acquisition of own shares, statutory
reserves);
decisions of the Management Board and the Supervisory Board, which may adjudicate in accordance
with the Companies Act upon half of created remaining net profit for the current year;
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•
decision of the Company’s Assembly adjudicating upon distributable profit.
The Company does not have statutory addressed earmarked profit reserves, however, it has established with
the statute that the amount of statutory reserves must reach 20 per cent of the Company’s nominal capital.
Considering that the company does not have own shares and does not need reserves for own shares, the
Company ensures with regard to disposition of profits the below indicated order:
•
•
•
risk equalisation reserves (equalisation reserves) in the calculated amount;
statutory reserves, whereby it gives priority due to statutory capital adequacy hedge – within the
limits of the amount the Management Board and the Supervisory Board are allowed to allocate by the
Companies Act – to directing profit to statutory reserves until they reach 20 per cent of nominal capital;
other profit reserves, which, apart from being used for covering potential losses in business operations,
also increase available solvency margin in calculation of capital adequacy.
Fair value reserve arises solely from effects of valuation of financial assets available for sale at fair value.
Amounts of fair value reserve disclosed in the balance sheet are corrected for amounts of deferred tax.
Earnings Per Share
When calculating net earnings per share, the Company takes into account all 6,812,050 issued shares in all
presented periods. Weighted average of ordinary shares exercised in the accounting period is equal to the total
number of shares, and earnings per share are the same for all shares.
All shares issued by the Company are ordinarily registered shares and consequently the Company does not
calculate adjusted net earnings per share.
Subordinated Debt
Subordinated debt represents issued bonds valued at amortised cost.
Insurance Contracts
All concluded contracts were classified by the company as insurance contracts in compliance with IFRS, since
by agreeing to refund the damage which the policy holder might suffer at some point in the future the insurance
company assumes material insurance risk from the policyholder.
As regards risk duration and determination of insurance conditions, the company categorises insurance
contracts into three main groups:
•
•
•
insurance contracts of non-life insurance,
insurance contracts of traditional life insurance and
insurance contracts of life insurance, in which the insured assumes investment risk.
Within non-life insurance, the company additionally identifies the following (homogeneous) types of insurance
contracts:
•
•
•
•
•
•
•
•
•
Car insurances
Farmers insurance
Credit insurance
Personal accident insurance
Liability insurance
Property insurance
Transport insurance
Railway insurance
Other non-life insurance
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As regards fulfilment of uncertainty conditions for an insurable event and material insurance risk, the company
in 2008 identified the following (homogeneous) types of insurance contracts within traditional life insurance:
•
•
•
•
•
•
•
•
•
Endowment life insurance with critical illness protection
Endowment life insurance
Endowment life insurance with agreed payout period
Endowment life insurance with interval payouts of the maturity value
Joint endowment life insurance
Term Life insurance
Term life insurance with decreasing sum assured
Whole life insurance
Joint whole life insurance
As regards fulfilment of uncertainty conditions for an event and material insurance risk, the company in 2008
identified the following (homogeneous) types of insurance contracts within unit-linked insurances:
•
•
Unit-linked life insurance with possible critical illness protection
Single-premium unit-linked life insurance with additional accidental death insurance
In case of insurance contracts comprising both insurance and deposit components, the company will not
execute unbundling and separate valuation of such components.
The company also concludes insurance contracts of life insurance classes comprising the possibility of
discretionary participation feature (e.g. participation of insurances in profits). Discretionary right included in
insurance contracts is not valued separately by the company, as any additional payout will not represent a
material share in the total payout based on the insurance contract. Any liabilities deriving from the discretionary
right will in total be calculated as mathematical provisions.
Insurance Contract Liabilities – Technical Provisions
The company acknowledges the following technical provisions:
•
•
•
•
•
provisions for claims outstanding,
mathematical provisions,
unearned premiums
provisions for bonuses and rebates and
other technical provisions.
Under obligations arising from insurance contracts, the Company discloses gross amounts of technical
provisions and technical provisions referring to insurance operations arising from assumed coinsurance. The
share of obligations under insurance contracts which has been ceded in reinsurance and coinsurance is
disclosed by the Company under assets.
The calculation of technical provisions deriving from insurance contracts and their adequacy is inspected and
commented on annual basis by an authorised non-life and life insurance actuary appointed by the company
administration.
Provisions for Claims Outstanding
Provisions for claims outstanding are established in the amount of estimated liabilities that the company has to
pay out based on insurance contracts, with regard to which an insurable event has occurred before the end of
insurance period, regardless of whether the insurable event has been reported. The company will not discount
provisions for claims outstanding.
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The company’s provisions for claims outstanding are composed of:
•
•
•
Provisions for reported and claims outstanding (provisions for claims outstanding according to
inventory),
Provisions for claims incurred but not reported (IBNR),
Annuity liabilities deriving from liability insurance.
Provisions for reported claims that remain unsettled until the end of the insurance period will be calculated
based on the estimated value of expected claim at the level of all open claim files.
The amount of provisions for claims incurred but not reported (IBNR) is calculated by the company using two
methods.
According to the first method the company first estimated the total amount of required provisions for claims
outstanding on the day of estimation based on triangles of liquidated claim development and the Chain Ladder
Method. Such estimation of provisions for claims outstanding comprises both provisions for reported incurred
claims as well as provisions for claims incurred but not reported (IBNR).
The Chain Ladder Method is based on calculated claims. The claims are arranged into a triangle, where the
lines represent the year of claim incurrence, and the columns represent the number of years between the year
of incurrence and the year of settlement. Annual development factors are used to forecast final claims.
Provisions for claims incurred but not reported (IBNR) are calculated by the company as the margin between
the amount of provisions for claims outstanding based on chain ladder method and provisions for incurred
reported claims.
According to the second method, the company calculated provisions for claims incurred but not reported
(IBNR) as a product of the expected number of subsequently reported claims and the expected average
amount of subsequently reported claims.
The company increases provisions for claims outstanding by appraisal costs. Appraisal costs are calculated
by the company with regard to insurance group level, based on the relation between appraisal costs incurred
and claim expenditure. The factor thus calculated is used by the company to increase provisions for claims
outstanding accordingly.
Within provisions for incurred reported claims, the insurance company also discloses its liabilities for recognised
annuities deriving from liability insurance, if recognised to claimants on the basis of a final judicial decision,
settlement or an agreement between the claimant and the insurer. The insurance company calculated the
amount of provisions for claims outstanding for liabilities deriving from annuities as the current value of future
annuity liabilities. The technical interest rate applied was 2.75 %.
Provisions for claims outstanding are reduced by estimated expected recourses. The estimation is based on
the company’s statistical data on recourses paid and claims liquidated in the last five years.
The insurance company does not use the method of claim provision discounting.
Net provision for claims outstanding is the gross provision for claims outstanding increased by the provision
for claims outstanding from the received coinsurance and reduced by the provision for claims outstanding from
the submitted reinsurance.
Mathematical Provisions
Using the Zillmer’s method, mathematical provisions for insurance contracts of traditional life insurance are
calculated by the insurance company as the difference between current values of estimated future underwriting
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liabilities and the current estimated value of future premiums that will be paid based on these insurances.
The calculation is performed at the level of individual policies in compliance with valid technical bases of the
company’s life insurance. Negative values of mathematical provisions are set to zero. The difference between
the positive Zillmer’s mathematical provision and Zillmer’s mathematical provision is disclosed in assets as the
deferred acquisition costs.
For insurance policies not having an equal reporting period and course of insurance year, the company
calculates mathematical provisions using linear interpolation of the provision between two subsequent years.
Mathematical provisions for additional entitlements have been established by the company for liabilities that
are established for guaranteed payouts upon the birth of a child. The amount of provisions for the birth of a
child is calculated based on the envisaged number and amount of payouts for insurances already taken out.
The procedure of calculating such provisions is based on the estimation of future payouts using the Chain
Ladder Method, also taking in consideration the number of births of children within one year of insurance being
taken out and within the insurance development year.
Mathematical provisions for traditional life insurance are increased by a share of attributed profit. Provisions
for profit attribution among those insured are based on the contribution method. The profit is attributed to
those insured once annually at the end of the year for the previous business year. The profit attributed to those
insured is guaranteed.
Mathematical provisions for unit-linked life insurance are established at the level of individual policies as:
•
•
Mathematical provisions of units, corresponding to the product of the number of units and the value of
a unit, calculated per individual investment funds, and
Mathematical provisions composed of paid premiums that have not been converted to units (due to
the delay between the premium payment and purchase order, and the entry of purchased fund units
to the insured’s personal account).
Provisions for Bonuses and Rebates
Provisions for bonuses are established in amounts of payouts, which the insured are entitled to receive based
on their right of participation in profits deriving from their insurances, or other entitlements based on the
insurance contract. Liabilities are calculated based on the rule of bonus reimbursement as defined in insurance
contract. The share of bonuses within an insurance period is calculated according to the “pro rata temporis”
principle.
Other Technical Provisions
On the day of valuation, the company discloses among other technical provisions, the provisions for unexpired
risks. Additional Unexpired Risks Reserve (AURR) is established by the company as additional provisions
for insurance groups where the estimated liabilities for unexpired risks exceed the established provisions for
unearned premiums. The reserve for unexpired risk is calculated by the company at the level of insurance
class.
The criterion of provision establishing is a negative claim ratio of an insurance class in the current year and
the estimation that the negative result is a consequence of the current year premium having been set too low.
If the reason for the negative result lies in exceptional claim activity of the previous year (catastrophe claim
and alike), the calculation of liabilities for unexpired risks within this insurance class is made within the same
model, but using rational assessment of eliminating appropriate events. The annual claim ratio of a class is
calculated as a share of expenses for incurred claims in relation to premiums earned increased by a share of
realised operating costs in relation to premiums earned.
Provisions for unexpired perils are made in the value of net amounts.
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Liability Adequacy Test (LAT) with Regard to Insurance Contracts
Based on the envisaged future cash flows, the company performs the liability adequacy test with regard to
life and non-life insurance contracts on each day of reporting. Should the adequacy test show deficiencies
with regard to the amount of established liabilities, the company recognises the deficiencies as the increased
liability directly in the profit or loss.
Unearned Premiums
The unearned premium of a particular insurance equals the amount of the gross insurance written premium
pertaining to coverage during an insurance period after the cessation of the accountancy period.
The insurance company established provisions for unearned premiums in insurance classes, where a portion
of gross insurance written premiums per particular insurance contract pertains to coverage during an insurance
period after the cessation of the accountancy period, for which provisions are being calculated.
Provisions for unearned premiums are calculated individually for each concluded insurance still in effect after
the last day of the accountancy period, within which the “pro rata temporis” method is used.
The calculation of unearned premium takes into consideration the changes in the amount of insurance coverage
(decreasing sum insured in credit insurance).
Reinsurance
Reinsurance is used by the insurance company to cover the portion of perils assumed within insurance that
exceed own shares in peril balancing according to tables of maximum coverage. Such risk is allocated by the
company or transferred to reinsurance companies.
The company has (a) reinsurance contract(s) both for non-life and life insurance, based on which a portion of
insurance risk is transferred to the reinsurance company.
Provisions for Other Liabilities and Costs
Among other provisions the company discloses long-term provisions for long-service awards to employees
and severance pay upon their retirement. These provisions are established based on the method of actuarial
valuation (the method used comprises the imputation of earnings proportionally to the work executed), which
is affected by mortality rate, employee fluctuation, future salary raises and the expected inflation rate. The
liabilities are acknowledged based on liabilities deriving from concluded employment contracts and labour
legislation in force.
Future cash flows are discounted using a long-term interest rate according to convergence criteria (source:
The Bank of Slovenia). The calculation comprises the consideration of the probability for the employee not
to receive the long-service award or severance pay due to preliminary cancellation of employment or death
in time of employment. The future fluctuation is defined through internal data based on previous experience
(separately for permanent employees and intermediaries). Slovenian tables are used for expected mortality.
Any changes to provisions for long-service awards and severance pay to employees are acknowledged by the
company within labour costs, included in operational costs.
Funds for employee’s pensions within the pension pillar are acknowledged by the company as current costs of
the period, in which the payment is made to the pension fund of a pension company.
Among other provisions the company also discloses retention sums from excess employment with regard to
disabled quota deriving from labour legislation. The funds are purpose-based, and as such can only be used
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by the company for purposes defined in labour legislation.
Liabilities for short-term employee earnings (salary, allowances...) are measured based on their nominal value
and acknowledged within labour costs, included in operational costs.
Accrued Costs and Deferred Revenue
With accruals the Company regulates time discrepancies between the issue of insurance policy and the start
of insurance coverage either as uncharged revenue or current deferred revenue. Initial recognition is equal to
amounts in the insurance policy.
Remaining items in accruals are costs and expenses taken into account in advance. Both cases involve
harmonisation of existing documents with the service actually performed, which must refer to appropriate
accounting period.
Tax
The Company calculates and pays tax on insurance transactions in accordance with the Insurance Transaction
Tax Act at a 6.5 per cent rate of the tax base.
Corporate income tax is imposed on the Profit and Loss Account. Levied tax is charged from taxable profit for
business year at tax rates in force on the date of the balance sheet. Tax rate for 2008 amounts to 22 per cent.
In 2007 it amounted to 23 per cent. In accordance with fiscal legislation, tax rate will be gradually decreasing
until 2010. Tax rate in 2009 will be 21 per cent and from 2010 on 20 per cent.
Deferred Taxes
Deferred taxes occur as deferred tax receivables or as deferred tax liabilities. When calculating deferred
taxes, the Company uses the balance sheet liability method. The Company defines the differences between
accounting value of assets and liabilities for the needs of accounting reporting and values for the needs of
tax reporting as permanent and temporary differences. Temporary differences are divided into taxable and
deductible.
The Company calculates and recognises deferred taxes arising from
• valuation of those financial assets classified under the group available for sale (disclosure of fair value
in capital),
• provisions for employees each time at applicable tax rate.
Deferred tax receivables are not recognised when impairing investments classified in the group of assets
available for sale through the Profit and Loss Account. The Company has no intentions of trading with such
investments in the foreseeable future, however at the same time it has no assurances that transactions will be
recognised in a reasonable period in terms of tax with regards to fiscal rules.
Revenue and Expenses
The Company ensures separate disclosure of all types of revenues and expenses for non-life insurance and
life insurance classes.
Earned Premiums
When disclosing earned premiums, the Company takes into consideration the principle of occurrence of an
event and an increase of economic benefit in the form of increased inflows or increased assets. The Company
monitors gross insurance premiums, coinsurance and reinsurance premiums and unearned premiums
separately. Revenues are measured on the basis of insurance premiums indicated on insurance contracts or
other documents. Authorized discounts on concluded insurances are recorded by the Company as a reduction
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of earned premiums. Recognised earned premiums in the reporting period are proportionate to assumed
coverage under insurance contracts.
Unearned premium is calculated separately for each insurance contract and is intended for distinguishing of
revenues from insurance premiums over the entire coverage period. Insurance premiums charged ex-post for
assumed insurance coverages in 2009 are included in revenues of the reporting period.
Upon termination of insurances, the Company reduces charged premiums earned for the proportionate share
of the not yet expired period, for which the insurance premium was charged.
Net premiums earned represent gross premiums earned adjusted for premium from assumed/ceded
coinsurance and reduced for the reinsurance share in gross premium and adjusted for the unearned premium
change.
The Company monitors earned insurance premiums separately according to insurance groups and classes.
Financial Revenues and Expenses
Under financial revenues, the Company discloses revenues from investment interests, dividends, disposal of
financial investments available for sale, change of fair value of investments at fair value through the Profit and
Loss Account and revenues arising from elimination or cancellation of impairment of value.
Under revenues from dividends, the Company discloses received dividends or shares to which it is entitled to
on the basis of investments in capital of other companies. They are recognised in the Profit and Loss Account
on the date on which the shareholder’s right to payment is enforced. Revenues from interests are recognised
upon their accrual by using the effective interest rate.
Investment revenues from technical provisions and own sources are recorded directly without keys on the
basis of analytical accounts from the Company’s chart of accounts, which establish relations between the
investment account and the revenues account.
Under financial expenses, the Company discloses expenses for interests, change of financial investments fair
value at fair value through the Profit and Loss Account, loss incurred due to disposal of financial investments,
negative exchange rate differences and loss due to impairment of financial investments value. Interest
expenses are recognized in the Profit and Loss Account by using the effective interest method.
Claims Incurred
When disclosing claims incurred, the Company takes into consideration the principle of occurrence of an event
and reduction of economic benefit in the form of expenses or reduced assets.
Net claims incurred of the Company are composed of gross claims payments adjusted for charged claims
from assumed/ceded coinsurance and reduced for the share of reinsurers in gross claims and for amounts
of exercised recourse receivables. Net claims incurred also include change of net provisions for claims
outstanding, i.e. gross provisions for claims outstanding corrected for coinsurers’ share in provisions for claims
outstanding.
The Company monitors claims expenditures separately according to insurance groups and classes.
Estimate of underwriting claims liabilities is the most critical accounting estimate. Insurance company must
take into consideration the uncertainty of a liability estimate, which it will have to pay as a result of incurred
claims. Adequate claims liability test was carried out with the intention to ensure adequacy of disclosure of
underwriting liabilities. When calculating the estimate, insurance company took into account the best possible
estimate of future cash flows, appraisal and administrative costs and investment revenues, with which claims
liabilities are covered. To ensure adequacy of disclosed underwriting liabilities, a liability adequacy test was
carried out on the balance sheet date. The test was carried out on the basis of the use of the best estimate of
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future cash flows, estimate of administrative costs and financial yields arising from assets intended for liability
coverage. Potential liability deficit is recognised as chargeable to the Profit and Loss Account.
The entire calculation of provision for claims outstanding is based on estimates and assumptions of the definitive
development of incurred claims. Provision for claims outstanding for reported claims is based on estimates of
expected values of payments for reported claims. Estimates are determined on the empirical basis by taking
into account expected future trends (inflation rate, service costs inflation rate, change in jurisprudence …).
Calculation of provision for claims outstanding for incurred but not reported claims (IBNR) is based on the
estimate of the number and amount of claims already incurred, but which have not yet been reported and
are unknown to the insurance company during calculation. The estimate of IBNR claims is determined by the
insurance company on the basis of consideration of past claims experience by using different mathematical and
statistical methods. Insurance company assumes that future realization of claims development will be similar
to past developments and it also takes into account detected trends and discrepancies. When calculating
provision for claims outstanding, estimates of future recourse efficiency and estimate of the level of future
claims procedure costs are also made. Adequacy of used assumptions and estimates is checked periodically
and new findings are used in the next valuation.
Operating Costs
The Company recognises operating costs according to natural classes at values in original or realized
accounting documents with obligatory use of cost centres from the Company’s organisation chart.
For accounting needs, costs are reallocated according to functional groups into insurance acquisition costs,
appraisal costs and other operating costs. The Company has fixed rules in place for allocation.
To carry out technical settlements of accounts, the Company reallocates all operating costs also to cost
drivers by taking into account the already effected allocation to functional groups. Amount of costs charged to
individual insurance class depends primarily on the number and value of transactions carried out in individual
organisational unit.
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3.
RISK MANAGEMENT
The company’s business operations expose it to different business risks, which are for the purposes of this
report divided into insurance risks, capital and capital adequacy risks and financial risks. The company’s
risk management process is continuous and it involves all organizational levels of the company’s business
operations.
3.1
Insurance Risk
Insurance risk is a risk which arises from insurance contracts concluded by the company. Important
insurance risks are exposed and described in continuation.
Claims Risk
Claims risk entails monitoring of the risk of the number of claims being higher than expected or the average
amount of claims being higher than expected. Claims risk also covers the possibility of the risk of the retention
rate determined by the insurance company being too high due to inadequate reinsurance protection, particularly
against catastrophic events.
Epidemics and changes of lifestyle, i.e. dietary habits, physical exercise and smoking, affect the number and
amount of claims arising from term life insurance contracts to the greatest extent. The greatest risk factors for
endowment life insurances are development of medical science and improvement of the populations’ social
position, which increases longevity.
Climate changes, which cause more frequent extreme weather events (floods, hail…), are a major factor in nonlife insurance contracts. An important risk factor in third party liability insurances, where claims procedures are
typically long and can last several years, is the increase of the number of actions based on claims, particularly
for non-material claims (coverage and amount).
To manage insurance risks, the insurance company concludes reinsurance contracts, with which a part of the
risk is transferred to the reinsurer. Each business year, the Management Board adopts a programme of planned
reinsurances with calculated maximum own shares for each insurance type, a table of maximum coverage
and established procedures, bases and criteria for estimation of maximum probable damage. Reinsurance
programme is composed of traditional proportional and disproportional forms of reinsurance protection.
Management Board of the insurance company is confident the amounts of own shares in tables of maximum
coverage have been determined in a prudent manner and appropriate reinsurance contracts have been
concluded so that the insurance company is not exposed to excessive risk.
Claims Development
In continuation, development of claims experience in non-life insurance is shown. Development of recognition
of claims according to the year when claims were incurred is represented in the claims development triangle.
Amounts include claims paid and reserved which the insurance company recognised for individual years when
claims were incurred up to and including the relevant calendar year.
F I N A N C I A L
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86
Development of claims experience in non-life insurance
In EUR
Year when claims were incurred
2004
2005
2006
2007
2008
Estimate of cumulative claims
at the end of claim year
135,927,141
125,728,958
129,149,957
148,139,504
213,680,595
- one year later
134,499,163
126,647,040
128,475,257
144,090,227
- two years later
132,071,804
127,083,326
128,412,907
- three years later
131,614,868
125,114,532
- four years later
131,592,365
Cumulative claims paid until the
end of 2008
122,488,260
114,979,156
114,040,834
121,718,637
141,330,767
Balance of provisions for claims
outstanding on 31.12.2008
9,104,105
10,135,376
14,372,072
22,371,590
72,349,828
Risk Concentration
Danger of insurance risk concentration may occur on account of one or several events which may cause
a substantial increase of the insurance company’s liabilities. It may arise from one insurance contract or a
smaller number of contracts covering events with low probability of occurrence but which cause substantial
damage (e.g. earthquake insurance or other natural disasters).
Presentation of diversification of the insurance portfolio and exposure to large insured persons for 2008
Total premium of 10
largest insured persons
Life insurances
Unit-linked insurances
Non-life insurances
184,573
718,032
7,757,709
Share of the total
premium
0.70 %
2.68 %
4.17 %
The company estimates that the share of 10 largest insured persons in proportion to the entire portfolio is
relatively small, therefore we conclude that the concentration of large insured persons does not pose a high
risk.
Technical Provisions Risk
Risk due to inadequate assessment of the amount of underwriting liabilities (reserving risk) represents the
risk of the amount of assessed provisions not being sufficient to cover all assumed insurance liabilities. The
most important are provisions for claims outstanding in non-life insurances, which can be divided into two
parts: underwriting liabilities for already reported claims and underwriting liabilities for claims incurred but not
yet reported (IBNR claims). Incorrect assessments of provisions for reported claims affect also the calculation
of incurred but not reported claims (IBNR claims). Insurance cases, for which claims liabilities have not been
established (e.g. in the past asbestosis), and third party liability insurances, where several years can pass from
conclusion of the insurance to reporting of claims, also pose a risk.
Insurance company regularly examines suitability of used parameters in calculation of liabilities as well as
adequacy of established underwriting liabilities in relation to the actual claims experience.
The company monitors the risk of provisions for claims outstanding being lower than they should be with
procedures carried out by the actuarial department. Disbursement of provisions for claims outstanding of
prior years according to each insurance sub-type and year of claim event is monitored. With the means of
the quotient of the amount of provisions for claims outstanding provision against premiums collected and
F I N A N C I A L
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87
claims paid, it is possible to assess whether the newly calculated provisions for claims outstanding have been
accurately calculated. The company takes into account identified deficiencies upon their detection.
In addition to poor assessment of claims reported and not yet paid, risk factors affecting assessment of the
amount of provisions for claims outstanding include:
•
•
•
•
•
•
•
the risk of variability of amount of claims being above-average,
the risk of selected quotients in the triangle method inadequately describing the trends in the insurance
sub-type. Consequently in accordance with precautionary principle, conservative methods are selected
to calculate quotients, particularly in the dominant insurance types,
the risk of the amount of average expected claim being too low as the increase of prices could
significantly raise these claims,
the risk of the relevant services underestimating the reported and not yet paid claims,
the risk of the amount of claims determined in disputes being higher than assessed by individual
services,
the risk of the current net value of annuities payable, which might still be recovered, being underestimated
due to strong growth of cost of living,
the risk of economic trends increasing inflation and consequently the amount of claims paid for past
events.
The risk of mathematical provisions being too low would occur if the actual mortality rate surpassed the values
in life tables, which are used in technical bases for calculation of life insurance premiums. Insurance company
finds the actual mortality rate to be lower than the mortality rate in life tables. Similarly, the risk of the actual
morbidity rate being higher than the values in morbidity tables with regard to life insurances in conjunction with
critical illnesses risk may also occur. Insurance company finds the actual morbidity rate to be lower than the
values in the tables. Insurance company compares actual morbidity and mortality rates of insured persons with
the values in the tables it uses annually.
Liability adequacy test (LAT) with regard to non-life insurance contracts
With regard to non-life insurance contracts, the insurance company only performs the adequacy test in relation
to provisions for unearned premiums. For provisions for claims outstanding as well as bonus and rebate
provisions it will be deemed by the company that they are established in appropriate amounts.
Provisions for claims outstanding for
• Incurred, reported and claims outstanding are evaluated based on current prices and envisaged
estimates of future payouts (inventory method)
• Claims incurred but not reported (IBNR claims) are evaluated as estimated envisaged payout amounts
based on statistical monitoring of such claims in the past.
The calculation of provisions for claims outstanding for IBNR claims for each insurance group is performed
based on triangles of liquidated claim development or the number of claims. It is assumed that the claim
development sample will in future be similar to the model from previous years. Using appropriate annual
development factors, the envisaged payout amounts will be estimated.
Provisions for claims outstanding are not discounted, which provides additional guarantee that the calculation
based on the chosen method is sufficient.
The consideration with regard to unearned premium provisions adequacy test, relates to the difference between
expected claims and costs for the remaining unexpired portion of contracts, which were valid on the balance
date, and the provision amount for unearned premiums.
Reduction of gross unearned premiums for the proportionate share of deferrable acquisition costs arising from
commissions, fire tax costs, printed material and policy tariffing by transferring them to deferred acquisition
costs is based on calculation supported with actual data in data warehouse.
F I N A N C I A L
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88
With regard to insurance classes where it has been established that unearned premiums are insufficient in
relation to the expected claim activity, the insurance company established additional provisions for unexpired
risks and recognises them in financial statements as additional liability – other technical provisions.
In the preparation of adequacy test of liability established within non-life insurance contracts, the guideline
No 1 of the Slovenian Association of Actuaries is applied: Introduction of IFRS 4, which was adopted by the
Slovenian Association of Actuaries, in the company.
Liability adequacy test (LAT) with regard to life insurance contracts
The test is performed for any life insurance contract valid on the cut-off balance date. The results are organised
in insurance product groups – traditional life insurance and unit-linked insurance.
Expected contractual cash flows:
• Income deriving from premiums (insurance contracts and additional accident insurances),
• Claim payouts (death, endowment, surrender, payout in case of accident),
• Costs (intermediary commission, appraisal costs, administrative costs),
• Investment revenues.
The following is considered in treatment of individual contracts:
• Annual premium, payment frequency, the sum insured for death and endowment,
• Product technical bases: technical insurance rate, mortality tables, costs,
• Assumptions: mortality margin, cancellation ratio, future profitability, realised costs, future inflation
rate, claim ratio of additional accident insurances.
For cash flows dealt with before policy expiration, their current value is calculated upon cut-off balance date.
The following assumptions are also important for settlement of accounts:
Discount rate: The curve AAA-rated German government bonds (Bloomberg) of 31 December 2008 is used
to calculate the current value of expected cash flows.
Investment profit rate: The curve AAA-rated German government bonds (Bloomberg) of 31 December 2008
is applied to traditional life insurance. For unit-linked insurance, the expected 6-percent return applies.
Inflation rate: A 3 percent annual inflation rate applies to the expected growth of costs.
Mortality margin: Based on an internal analysis of mortality rate with regard to the used mortality tables, a
50 percent mortality rate applies to traditional life insurances apart from whole life insurance. A 75 percent
mortality rate applies to whole insurance, and a 50 percent mortality rate applies to unit-linked insurance.
Cancellation ratio: Based on an internal analysis of cancellations of life insurance, the following cancellation
ratios apply:
Insurance year
Cancellation ratio
Insurance year
Cancellation ratio
1
2
3
4
5
6
15.5 %
9.5 %
9.7 %
5.9 %
6.3 %
6.5 %
7
8
9
10
11
>11
6.0 %
5.7 %
4.2 %
4.4 %
4.2 %
4.2 %
Realised costs: The operational costs stated within accounting items are split between fixed costs and costs
expressed as a share of gross premium. 75 percent of fixed costs per policy apply to capitalised policies.
Claim ratio of additional accident insurances: Based on an internal analysis of claim ratio of additional
accident insurances, the claim ratio applies that also comprises appraisal costs in case of additional
F I N A N C I A L
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89
accidents.
Sensitivity analysis of adequacy test for liability established within life insurances in 2008
The insurance company has performed an analysis of LAT test with regard to the influence of various
parameters. Each time, only one assumption was different, the others remaining unchanged.
Performed sensitivity analyses – changes in assumptions:
•
•
•
•
•
•
The interest rate used in the calculation of current value of expected cash flows and in the forecast of
investment profitability, is decreased by 100 basis points,
The interest rate used in the calculation of current value of expected cash flows and in the forecast of
investment profitability, is increased by 100 basis points,
The ratio of mortality margin is increased relatively by 10 percent,
The cancellation ratio is increased relatively by 10 percent,
Realised costs are increased relatively by 10 percent,
Inflation rate increased relatively by 10 percent.
Results of sensitivity analysis – changes in liability amount calculated via the LAT test on the balance date of
31 December 2008:
Traditional life insurance, in EUR
Changed assumption
1) Interest rate
2) Interest rate
3) Ratio of mortality margin
4) Cancellation ratio
5) Realised costs
6) Inflation rate
Change of assumption
- 100 basis points
+ 100 basis points
+ 10 % relatively
+ 10 % relatively
+ 10 % relatively
+ 10 % relatively
Change in liability amount
13,096,094
-6,016,639
746,739
385,202
2,059,478
207,381
Unit-linked life insurance, in EUR
Changed assumption
1) Interest rate
2) Interest rate
3) Ratio of mortality margin
4) Cancellation ratio
5) Realised costs
6) Inflation rate
Change of assumption
- 100 basis points
+ 100 basis points
+ 10 % relatively
+ 10 % relatively
+ 10 % relatively
+ 10 % relatively
Change in liability amount
-329,040
266,879
413,979
462,757
1,773,005
126,527
Expected present value of future cash flows, separately from insurance contracts of traditional life insurance
and from insurance contracts of unit-linked life insurance, is compared with existing established mathematical
provisions and provisions for unearned premiums. In the event that the test shows inadequacy of currently
established liabilities, the Company establishes a special provision arising from the deficit of established
liabilities with regard to the LAT test.
Liabilities calculated with the LAT test on the balance sheet date 31.12.2008 are thus both for traditional
life insurances as well as for unit-linked life insurances lower than the total of mathematical provisions and
provisions for unearned premiums, disclosed by the company in financial statements. The test demonstrated
adequacy of established liabilities both for traditional life insurances as well as for unit-linked life insurances.
F I N A N C I A L
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90
Reinsurance Risk
Insurance company must cover the share of perils assumed in insurance which exceed own shares in
equalization of perils according to tables of maximum coverage with reinsurance. For assumed risks, the
company establishes provisions, which are based on actuarial calculations. Assumed risks also depend on
the type of risk assumed in insurance and the amount of the sum insured. Such risks can be minimized with
a proactive reinsurance policy.
To this end, the company apportions or transfers a part of the risk to reinsurance companies. With this, the
level of confidence of insured persons increases, however, the risk of the level or type of reinsurance not
being adequate for the risks or scope of insurance contracts still exists.
The company pursues a conservative risk reinsurance policy and gives priority to the safety of the company
and the insured persons. In terms of reinsurance risk, the company is not significantly exposed in the class
of life insurances as sums insured of domestic insured persons for the most part do not reach reinsurance
limits.
The company adopts a programme of planned reinsurances for each business year and the programme
includes:
•
•
•
calculation of own shares for individual insurance types,
a table of maximum coverage prepared on the basis of these calculations,
procedures, bases and criteria for estimation of maximum probable damage for individual risks
assumed in insurance.
The company assesses assumed risks and, based on prior experience, statistical data on claims and options
on the market, offers them in reinsurance in the most favourable form customary in reinsurance (quota share,
surplus reinsurances, disproportional reinsurances and composite reinsurances).
The comparison below shows achieved ratios in terms of adequacy and efficiency of reinsurance in view of
effects on premiums, unearned premiums, claims and reserves for claims outstanding:
Profit and Loss Account Item - Non-life insurance
Share of reinsurance in gross premium
Reinsured unearned premium
Reinsurance share in gross claims
Reinsurance share of provisions for claims outstanding
in 2008
in 2007
24.39 %
21.71 %
44.72 %
35.68 %
26.13 %
24.82 %
31.20 %
30.25 %
The reason for lower share of external equalization in gross and unearned premium compared to the one in
2006 lies in reduction of the level of share quota from 30 per cent to 27.5 per cent. In 2007, more attention was
given to the structure and form of reinsurance, and ratios in the table below showed effects in 2008, a year for
which substantial catastrophic claims were characteristic (in EUR thousand):
F I N A N C I A L
R E P O R T
91
In EUR thousand
FORM OF
REINSURANCE
Priority in
EUR
Reserved
Net
Reinsurance Reinsurance Reinsurance Reserved
reinsurance
reinsurance
premium
claims
claims
reinsurance
claims
premium
structure
written
structure
claims
structure
Total quota share
35,002
79.08%
41,647
59.06%
36,984
71.48%
Total surplus
Total quota sharesurplus
Total earthquake
3,172
7.17%
4,668
6.62%
2,540
4.91%
323
0.73%
669
0.95%
538
1.04%
964
2.18%
6
0.01%
Total facultative
Total XL reinsurance
compulsory car
insurance and Green
Card
Total XL reinsurance
motor cargo,
comprehensive,
third party liability for
motor vehicles and
vessels,
Total Cat XL
2,047
4.62%
1,014
1.44%
-113
-0.22%
750,000
270
0.61%
689
1.33%
325,000
37
0.08%
1,000,000
1,832
4.14%
125,000
23
0.05%
500,000
53
0.12%
541
1.22%
Total accident XL
Total third party
liability XL
Total other
reinsurances
Total
44,263
100%
22,430
31.81%
11,103
21.46%
78
0.11%
32
0.06%
70,513
100%
51,772
100%
Sensitivity test of the reinsurance form in business year 2008 shows the company should cover claims in the
amount of EUR 25.9 million with savings of premium in the amount of 2 million debited to the company in the
event of suspension of reinsurance of catastrophic risks in 2008.
In EUR thousand
Total excl cat XL
Net reinsurance
premium
42.431
Reinsurance
premium
structure
Reinsurance
claims written
96 %
Reinsurance
claims
structure
54.251
100 %
Reserved
reinsurance
claims
43.723
Reserved
reinsurance
claims
structure
100 %
Sensitivity test of a lower level of reinsurance protection (reduction of quota by 2.5 %) in business year 2008
shows the company should cover for 7.1 million more claims with savings of premium in the amount of 3.1
million debited to the company in relation to quota share reduced by 2.5 per cent in 2008:
In EUR thousand
Total quota 25 %
Net reinsurance
premium
41.081
Reinsurance
premium
structure
Reinsurance
claims written
100 %
Reinsurance
claims
structure
66.726
F I N A N C I A L
R E P O R T
92
100 %
Reserved
reinsurance
claims
48.410
Reserved
reinsurance
claims
structure
100 %
Guarantees Arising from Insurance Contracts
Appropriate contracts with asset managers are concluded for guarantees embedded in some forms of unitlinked life insurances. Under these contracts, guarantees are ensured by asset managers.
3.2
Capital and Capital Adequacy Risk
Required and available solvency margins are determined by the Company in accordance with the Insurance
Act and with statutory regulations on the more detailed way of calculation of capital, as well as compliance
with capital requirements and capital adequacy of insurance companies, and specific rules for calculation of
the Company’s solvency margin. In accordance with criteria laid down by the supervisor (ISA) the Company
calculates capital adequacy separately for insurance transactions in non-life insurance classes and in life
insurance classes.
The Company’s available solvency margin must at all times be higher than the required solvency margin.
The Company includes items of tier one capital, which is composed of nominal capital, capital reserves,
reserves from profit (excluding own shares and equalisation reserves) and profit (loss) from previous periods,
in calculation of available solvency margin. Tier 2 capital items include discounted value of subordinated
debt instruments. Deduction represents qualifying participation of the Company in capital of other financial
institutions.
The risk that the Company will not have sufficient available solvency margin at its disposal can arise from:
•
•
•
•
unexpected exceptional increase of gross premiums or gross claims or even a change in the structure
of realised premium according to insurance classes,
a change in reinsurance relationships or the amount of own equalisation of claims,
incurred loss in business operations, which is debited directly to available solvency margin in calculation,
investment of assets in investments which represent capital or subordinated debt of financial
organisations.
Increased volume of premium and claims, change in quota share reinsurance, elimination of tier 2 capital item
due to receipt of subordinated bonds and loss after storms in the third quarter of the year are the main reasons
why the Company failed to meet capital requirements in the field of non-life insurances in the second and third
quarter of 2008. In June 2008 the Management Board of the Company actively approached assurance of the
Company’s capital adequacy by issuing new subordinated bonds, selling financial investments in a subsidiary
of the insurance company in Croatia, and concluding new reinsurance coverages for catastrophic claims.
Coverage of quarterly loss and favourable ratio of own claims coverage on account of the fact that catastrophe
claims coverage is debited to reinsurance, contributed towards the favourable situation at the end of the year
when the Company fully meets capital requirements.
In the capital adequacy calculation at the end of the year, the Company is reducing available solvency margin
for the amount of indirect participation in insurance companies in Croatia, despite the fact that a sale agreement
has been concluded and the Company did not control these companies at the end of the year. Deduction
amount is disclosed under non-current assets held for sale (see explanatory note to statements no. 10).
F I N A N C I A L
R E P O R T
93
31. 12. 2008
Capital adequacy
in EUR, rounded
Non-life ins.
Share capital / Tier one capital
Minimum guarantee capital
Tier two capital
Available solvency margin
Required solvency margin
Surplus of the solvency margin
Life ins.
Non-life ins.
Life ins.
25,429,788
6,760,325
5,070,244
25,025,649
20,280,976
19,872,606
4,465,597
0
17,206,070
13,362,171
25,422,686
5,296,656
1,372,760
21,201,948
15,889,968
19,510,065
4,360,850
1,046,000
15,952,202
13,082,549
4,744,673
3,843,899
8,706,047
8,158,833
23 %
29 %
55 %
62 %
Surplus in %
3.3
31. 12. 2007
Financial Risks
Risk of Interest Rate Changes
Investments in debt financial instruments, which are remunerated, represent a large part of financial assets
of Zavarovalnica Maribor. The table below shows the share of such investments which are remunerated with
fixed interest rates, the share of such investments which are remunerated with floating interest rates and the
share of assets which are not remunerated.
2008
Financial assets
In EUR
Interest-bearing assets
- floating interest rate
- fixed interest rate
Non-interest bearing assets
Total
2007
%
In EUR
403,942,269
13,557,441
390,384,827
59,174,594
87.22
2.93
84.30
12.78
463,116,863
100
382,752,543
14,338,158
368,414,385
78,433,691
461,186,234
%
82.99
3.11
79.88
17.01
100
Average duration1 of the life insurance long-term business fund bond portfolio2 on 31.12.2008 amounts to
5.03 years (5.66 years on 31.12.2007). On the assumption of a 20 per cent interest rate growth, the value of
investments in bonds would decrease by EUR 9,679,240 (EUR 11,041,334 on 31.12.2007), which would result
in reduction of fair value reserve in the amount of EUR 9,393,290 (EUR 10,819,584 on 31.12.2007) and an
increase of expenses of assets classified at fair value through the Profit and Loss Account in the amount of
EUR 285,950 (EUR 221,750 on 31.12.2007).
Average duration of liabilities arising from traditional life insurance portfolio is 10.79 years (on 31.12.2007:
11.65 years). On the assumption that technical interest rates used in calculation of mathematical provisions
for traditional life insurances increased by 1 per cent (100 basis points), the value of mathematical provisions
would decrease by EUR 10,894,578 (on 31.12.2007: EUR 11,360,729) 3.
Calculation of duation and interest sensibility for all company's bond investments is based on the assumption of horizontal yield curve, thus applying a single discount rate throughout the period.
1
2
3
Bonds with fixed interest rate have been taken into consideration.
The extent of increase of technical interest rates is determined in the relative ratio regarding the increase of the investment portfolio interest rates.
F I N A N C I A L
R E P O R T
94
Average duration of the bond portfolio of the assets covering technical provisions on 31.12.2008 amounts
to 4.92 years (5.22 years on 31.12.2007). On the assumption of a 20 per cent interest rate growth, the value
of investments in bonds would decrease by EUR 4,105,692 (EUR 3,820,181 on 31.12.2007), which would
result in reduction of fair value reserve in the amount of EUR 3,977,042 (EUR 3,706,281 on 31.12.2007) and
an increase of expenses of assets classified at fair value through the Profit and Loss Account in the amount of
EUR 128,650 (EUR 113,900 on 31.12.2007). The value of technical provisions of non-life insurance would not
react to the change of interest rate due to non-discounting.
To protect the Company against interest rate risk, derivatives were not used by Zavarovalnica Maribor in
2008. Investment portfolio was managed so that the gap between maturity of liabilities and investments was
minimised to the greatest possible extent.
Currency Risk
Legal requirement for 80 per cent conformity of investments and liabilities regarding currency was fully met and
exceeded in 2008. With the introduction of the Euro as the legal means of payment in the Republic of Slovenia,
conformity of investments and liabilities regarding currency attained the highest level to date and it came near
to 100 per cent. For this reason, currency risk is negligibly low and consequently no special measures for its
reduction are being taken in the insurance company during the current situation.
Other Market Risks
Investments Concentration Risk
Investment portfolios of Zavarovalnica Maribor are managed in such a way that an adequate diversification of
investment portfolio is ensured, thus reducing the risk while preserving the expected profitability. The Company
complies with all legislative regulation on diversification and applies the internally determined limitations for
individual types of investments.
Geographic structure of investments as of 31 December is shown below.
The geographic structure of investments shows a significant increase in investments in other EU countries.
Thus, compared to the previous year, in 2008 the Company reduced the risk of investment concentration.
Geographic area
2008
2007
in EUR
Slovenia
Other EU countries
Total
%
372,506,340
90,610,523
in EUR
80.43
19.57
463,116,863
100.00
396,323,286
64,862,948
461,186,234
%
85.94
14.06
100.00
Credit Risk
Investment portfolios of Zavarovalnica Maribor are subject to credit risk of unsettled liabilities by securities
issuers. In order to reduce as much as possible exposure to such type of risk, the Company invests in the
securities of issuers with high ratings.
The table below shows the structure of securities issuers as of 31 December by their rating4.
______________________
4
In the event of different ratings, in both tables issuers were classified according to the lower allocated rating. In the case
of issuers rated only by Fitch and not also by Moody’s or S&P, these issuers were included in the table according to the
equivalent rating of the latter two.
F I N A N C I A L
R E P O R T
95
2008
Moody´s / S&P rating
2007
in EUR
Aaa/AAA
Aa/AA
A/A
Baa/BBB
No rating
%
32,546,161
250,141,542
79,685,714
31,147,351
69,596,096
Total
463,116,863
in EUR
7.03
54.01
17.21
6.73
15.03
%
18,486,121
247,643,940
71,029,566
30,416,555
93,610,052
100.00
461,186,234
4.01
53.70
15.40
6.60
20.30
100.00
The category of issuers without rating only comprises some domestic issuers, while the Company does not
invest in the securities of foreign issuers without rating.
On 31.12.2008, the share of financial assets which had fallen overdue amounted to 0.06 per cent of all
investments indicated in the table above. These financial assets are not impaired and refer to the overdue
share of loans.
Receivables arising from insurance operations also represent an important share of the Company’s assets.
Due to the risk that all receivables will not be settled within the time-limit or will not be settled at all, the Company
estimates the repayable value of receivables on each reporting date. Tables below show age structure of
receivables arising from insurance operations which are subject to revaluation to their estimated repayable
value:
31.12.2008
in EUR, rounded
Amount of
receivables
31.12.2007
Impairment of
receivables
Amount of
receivables
Net amount
Impairment of
receivables
Net amount
Receivables from non-life insurance operations
Past-due receivables
18,787,583
5,264,767
13,522,816
16,251,975
4,216,690
12,035,285
Up to 1 month
3,431,440
297,985
3,133,456
3,248,199
178,004
3,070,195
From 1 month to 3 months
3,074,776
269,031
2,805,746
2,569,295
195,855
2,373,440
From 3 months to one year
5,408,481
841,717
4,566,764
3,664,900
408,097
3,256,804
From one year to three years
3,624,465
607,614
3,016,851
3,885,718
550,873
3,334,845
Over 3 years
3,248,421
3,248,421
0
2,883,862
2,883,862
0
27,307,082
1,552,451
25,754,631
29,732,120
1,401,192
28,330,929
Non-due receivables
Total
46,094,665
6,817,219
39,277,447
45,984,095
5,617,882
40,366,214
Recourse receivables
14,166,159
13,814,163
351,996
14,047,290
13,634,896
412,393
Up to 1 month
585,276
259,528
325,748
300,382
210,478
89,904
From 1 month to 3 months
492,984
466,735
26,249
821,079
498,589
322,489
From 3 months to one year
678,013
678,013
0
620,989
620,989
0
From one year to three years
861,580
861,580
0
545,595
545,595
0
11,548,306
11,548,306
0
11,759,246
11,759,246
0
4,200,432
4,072,218
128,214
4,634,045
4,478,515
155,530
Over 3 years
Non-due receivables
Total
18,366,591
17,886,382
480,209
18,681,334
18,113,411
567,923
Receivables from life insurance operations
1,866,233
598,387
1,267,846
2,427,887
1,167,458
1,260,429
To 3 months
1,267,846
1,267,846
1,260,429
1,260,429
598,387
598,387
0
1,167,458
1,167,458
0
13,307
13,307
24,161
24,161
Over 3 months
Non-due receivables
Total
Total receivables from insurance operations
1,879,540
598,387
1,281,153
2,452,048
1,167,458
1,284,590
66,340,796
25,301,987
41,038,809
67,117,478
24,898,751
42,218,727
F I N A N C I A L
R E P O R T
96
Risk of Equity Securities Market Value Changes
The Company invests in equity securities in such a way that it ensures an adequate diversification of investments
and regularly monitors and analyses the operations of individual issuers. The investment portfolios mostly
include shares with higher market capitalisation and sufficient liquidity.
On 31.12.2008, the Company has EUR 14,732,428 worth of investments in shares of trade companies (EUR
25,138,495 on 31.12.2007) and EUR 40,557,166 worth of investments in shares of investment companies and
mutual funds (EUR 43,932,649 on 31.12.2007) among its investments.
On the assumption of a 20 per cent fall of market values of shares, the value of share investments would
decrease by EUR 11,057,919, which would result in reduction of fair value reserve in the amount of EUR
4,791,097 and an increase of expenses of assets classified at fair value through the Profit and Loss Account
in the amount of EUR 6,266,822.
Liquidity Risk
The Company carries out its investment activities in such a way that, at all times, it is able to fulfil
all its liabilities in due time. For this reason, it has developed an efficient liquidity risk management
system within the scope of which it plans cash flows for daily, weekly, monthly, quarterly and annual
periods.
In the process of liquidity management, the Company regularly monitors cash flow. Cash outflow in respect of
payroll and taxes as well as cash outflow that remains relatively unchanged throughout the year are planned
as total amounts for the period of up to one year. Cash outflow arising from claims are planned as average total
amounts estimated on the basis of cash flow observed in the past one to three years, inflation estimates in the
current year, and the operational plan of indemnities liquidated.
Data on the total cash outflow arising from the payment of suppliers’ invoices and other payments exceeding
the anticipated amounts are forwarded by individual organisation units to the persons responsible for liquidity
management as soon as their first estimates are known.
Individual major claims that exceed the average values are observed by means of a detailed system of prompt
internal reporting by individual organisation units on any claims above the previously determined amount.
Thus, the liquidity management staff is informed of all estimated major claims and of the expected dates of
payment as soon as the first appraisals are made.
In order to provide a full picture of liquidity, the Company also plans cash inflow in respect of premiums,
investment, and other cash inflow. If the actual flow derogates from the plans and liquidity assets fail to cover
the liabilities, the Company adopts short-term measures to guarantee solvency. Thanks to the established
liquidity management system, the extent of derogations from the planned cash flow is small and easy to control.
F I N A N C I A L
R E P O R T
97
Display of all financial assets of the Company on 31.12.2008 in terms of their maturity:
in EUR, rounded
period
Type of financial assets
Up to 1 year
From 1 to 5
years
From 5 to 10
years
Total
Over 10 years
Securities issued by
RS, BoS, EU
16,441,605
74,262,643
129,446,569
8,584,447
228,735,264
Other bonds
10,188,105
53,854,050
42,121,455
11,491,852
117,655,462
-
22,449
17,766,047
37,501,099
55,289,595
857,979
691,388
391,914
-
1,941,281
Deposits
32,785,554
18,370,091
8,339,616
-
59,495,261
Reinsurers’ assets
68,525,279
68,525,279
38,021,960
3,016,850
-
-
41,038,810
25,269,236
25,269,236
1,216,227
146,895
1,363,122
648,607
-
-
-
648,607
Equities and investment
coupons
Loans
Receivables from insurance
operations with insured
Receivables from reinsurance
and coinsurance
Receivables from business
operations
Financial assets
Total
193,954,552
150,364,366
198,065,601
57,577,398
599,961,917
Display of expected cash flows for all financial liabilities on 31.12.2008 in terms of maturity:
in EUR, rounded
period
Liability
Up to 1 year
Mathematical provisions from traditional insurance
From 1 to 5
years
From 5 to 10
years
Over 10 years
Total
15,934,379
41,447,426
56,491,117
110,470,794
224,343,715
88,037
330,544
30,751,423
14,367,832
45,537,836
Provisions for claims
outstanding
77,357,233
51,108,462
22,189,218
6,311,082
156,965,995
Unearned premiums
73,909,731
2,007,053
247,299
23,154
76,187,237
4,549,645
117,838
14,519
1,359
4,683,363
12,833,765
7,000,000
19,833,765
29,462,695
29,462,695
12,597,886
12,597,886
95,011,323
116,693,576
131,174,221
569,612,491
Mathematical provisions from unitlinked insurance
Other technical provisions
Subordinate liabilities
Liabilities from direct insurance
operations
Liabilities from business
operations
Total
226,733,371
Pursuant to the Insurance Act and the secondary legislation, every week the Company calculates the prescribed
liquidity ratio, which was considerably above the minimum requirement throughout 2008.
F I N A N C I A L
R E P O R T
98
4.
SEGMENT REPORTING
Being a joint insurance venture, Zavarovalnica Maribor is able to monitor its operations by two reporting
segments, namely:
•
•
Non-life insurance product group; and
Life insurance product group.
The assets and liabilities of the segment comprise the Company’s assets and liabilities directly attributable to
the segment as well as those which may be justifiably allocated thereto.
The segment’s revenues and expenditures derive from its operations and are directly attributable to the
segment; in addition, they include a certain part of revenues and expenditures which may be justifiably allocated
to the segment. The reporting segments achieve all stated revenues from external customers (the insured
persons). The expenditures at the corporate level are allocated to the segment expenditures indirectly. Indirect
allocation (mainly of operating costs) is carried out quarterly and based on previously identified procedures
and distribution keys (number of claims, number of insurance premiums, gross premium, liquidated indemnity,
number of employees, etc.), which remain unchanged between individual reporting periods.
The Company does not use regional segments as all its operations are carried out on the territory of the
Republic of Slovenia.
The accounting policy of reporting segments is entirely equal to the accounting policy of the Company.
Investments by Segments
in EUR, rounded
Investments in intangible assets
Investments in tangible fixed assets
Investment property
Total investments
Non-life insurance
2008
2007
129,000
1,566,802
1,695,803
Life insurance
2008
334,697
1,446,663
1,781,360
5,328
5,328
2007
864
55,597
56,461
Total
2008
129,000
1,572,130
1,701,130
2007
334,697
1,447,527
55,597
1,837,821
Deferred Taxes by Segments
Non-life insurance
in EUR, rounded
Receivables for deferred taxes
Liabilities for deferred taxes
31.12.
2008
Life insurance
31.12.
2007
218,610
-
70,588
-
31.12.
2008
31.12.
2007
1,066,464
6,178,400
Total – netted balance
31.12.
2008
0
847,854
31.12.
2007
0
6,107,812
Amounts of deferred taxes recognised in the balance sheet by segments are disclosed offsetted. As the
Company establishes and settles corporate income tax for the Company as a whole, only netted amounts of
deferred taxes are disclosed in the overall balance sheet.
F I N A N C I A L
R E P O R T
99
Receivables and Liabilities between the Reporting Segments
Non-life insurance
in EUR, rounded
Receivables
Liabilities
Life insurance
Total – net balance
31. 12.
2008
31. 12.
2007
31. 12.
2008
31. 12.
2007
31. 12.
2008
2,611,933
19,419
4,273,197
0
19,419
2,611,966
0
4,273,197
31. 12.
2007
0
0
0
0
In the balance sheet by segments all items are disclosed offsetted. The relations between the two reporting
segments that represent receivables/liabilities are recorded separately and derive from balancing the total
Company’s expenditure from the bank account of non-life insurance and transactions to the benefit/burden of
an erroneous bank account. In order to balance the internal relations at corporate level, these are not included
in the Company’s total assets.
Depreciation by Segments
in EUR, rounded
Depreciation of buildings and
equipment
Depreciation of investment
property
Total depreciation
31. 12. 2008
NLI
31. 12. 2007
LI
Total
NLI
LI
Total
1,869,420
107,892
1,977,311
1,724,317
140,012
1,864,329
44,238
1,342
45,580
48,008
1,230
49,238
1,913,658
109,233
2,022,891
1,772,325
141,242
1,913,567
Impairment of Assets by Segments
in EUR, rounded
Impairment of financial investments available for sale
Impairment of other assets
Total impairment of assets
31. 12. 2008
NLI
LI
31. 12. 2007
Total
NLI
LI
Total
2,830,464
6,542,720
9,373,184
-
-
0
6,768
-
6,768
-
-
0
0
0
2,837,232
6,542,720
9,379,952
F I N A N C I A L
R E P O R T
100
0
CASH AND CASH EQUIVALENTS
M
101
F I N A N C I A L
R E P O R T
1.688.582
4.073.152
OTHER LIABILITIES
I
J
TOTAL LIABILITIES AND CAPITAL
LIABILITIES FOR PROFIT TAX
H
299.404.493
9.102.699
1.273.754
19.659.459
3.097.830
17.263.397
634.940.266
11.055.388
338.649.071
1.743.146
847.854
29.462.695
469.392
1.066.464
9.803.235
2.353.702
F
G
4.473.117
156.965.995
269.881.551
76.187.236
507.718.145
19.833.765
1.082.708
4.445.463
4.473.117
744.128
2.811.907
14.134.023
Other gross technical provisions
11.603.181
269.881.551
780.708
282.265.441
5.550.000
1.082.708
4.488.156
54.973.434
28.426.181
210.246
145.362.814
75.406.528
225.452.705
14.283.765
-42.693
10.367.996
2.072.254
7.995.326
27.695.023
634.940.266
648.607
9.451.834
2.087.246
66.308.045
68.525.279
354.898.611
61.436.542
46.781.710
463.116.863
774.591
13.069.824
10.957.977
as at 31.12.2008
Total
210.246
5.
Mathematical provisions
2.
Provisions for future claims payment
Gross unearned premiums written
1.
Gross provisions for bonuses and rebates
LIABILITIES FROM INSURANCE CONTRACTS
D
3.
OBVEZNOSTI IZ FINANČNIH POGODB
C
4.
Profit or loss for the period
6.
B
5.
2.384.570
Retained profits (loss)
Fair value change reserve
4.
739.652
3.766.027
Capital reserves
Reserves from profit
20.430.855
27.278.410
338.649.071
299.404.493
4.609.396
730.965
1.281.153
244.651.909
34.838.432
44.586.458
324.076.799
53.025
234.381
2.
1.
6.066.537
1.596.814
414.226
4.842.438
4.250.970
218.610
65.026.892
68.525.279
110.246.702
26.598.110
2.195.252
139.040.064
721.566
3.
CAPITAL
Share capital
A
LIABILITIES AND CAPITAL
TOTAL ASSETS
NON-CURRENT ASSETS HELD FOR SALE
L
INSURANCE RECEIVABLES
I
ODLOŽENE TERJATVE ZA DAVEK
REINSURERS' AND COINSURERS' FUNDS
4.
H
OTHER ASSETS
Financial investments available for sale
3.
J
Loans
1.
K
Financial investments valued at fair value through profit/loss
E
INVESTMENT PROPERTY
INVESTMENTS IN DEPENDENT AND ASSOCIATED UNDERTAKINGS
C
11.473.010
4.891.439
as at 31.12.2008
as at 31.12.2008
D
INTANGIBLE ASSETS
LAND, BUILDINGS AND EQUIPMENT
A
B
ASSETS
in EUR
Life insurance
Non-life insurance
259.102.296
5.650.681
128.608
18.188.405
2.249.859
3.821.800
320.491
124.219.702
72.331.039
200.693.032
6.863.800
266.317
-1.083.650
2.118.253
2.856.485
739.652
20.430.855
25.327.912
259.102.296
368.043
74.605
6.835.033
70.588
52.528.203
54.611.601
94.714.255
26.822.444
1.502.650
123.039.349
349.055.649
10.920.349
1.087.337
6.178.400
6.934.955
686.497
11.653.900
261.853.047
830.672
274.337.619
5.230.000
1.688.582
22.355.867
9.568.463
2.072.254
7.995.326
43.680.493
349.055.649
219.462
818.971
1.284.590
271.922.898
30.042.570
36.181.417
338.146.884
54.367
4.609.396
804.034
1.699.550
2.222.428
Life insurance
as at 31.12.2007
corrected
4.753.151
11.730.631
4.287.059
Non-life insurance
as at 31.12.2007
corrected
603.814.160
12.297.832
1.215.945
6.107.811
25.123.360
2.936.356
3.821.800
320.491
135.873.602
261.853.047
73.161.710
475.030.651
12.093.800
1.954.899
21.272.217
2.118.253
12.424.948
2.811.907
28.426.181
69.008.404
603.814.160
587.505
74.605
3.380.807
53.812.793
54.611.601
366.637.154
56.865.013
37.684.067
461.186.234
9.362.547
858.401
13.430.181
6.509.487
Total
as at 31.12.2007
corrected
Balance Sheet by Reporting Segments
139.478.072
Net premiums written (1 + 2)
Change in gross unearned premium
Change in unearned premium for reinsurance and coinsurance share
Net earned premiums (3+ 4 + 5)
3.
4.
5.
Gross claims paid
Reinsurances and co-insurances share in gross claims
Recourse written in gross claims
Net claims paid (1 + 2 + 3)
Change in gross provisions for claims outstanding
Change in provisions for claims outstanding for reinsurers’ and co-insurers’ share
Net claims and benefits incurred (4 + 5 + 6)
3.
5.
6.
102
Change in mathematical provisions
Change in net provisions for bonuses in rebates
Change in gross provisions for unexpired risks
Change in other net technical provisions
Change in insurance contract povisions (1 to 5)
3.
4.
F I N A N C I A L
R E P O R T
2.329.850
3.073.456
Other insurance expenses
Other expenses
3.
4.
Net profit or loss
Deferred tax
-511
3.034.623
442.317
2.163.645
5.198.779
78.020.725
19.100.807
13.856.822
3.539
75.022
10.776.668
3.001.593
12.126.812
12.126.812
32.936.284
-50.719
32.987.003
32.987.003
83.219.504
161.515
17.082.345
65.975.643
49.963
65.925.680
-51.300
65.976.980
from 1.1. to
31.12.2008
Life insurance
-242.840
833.048
1.518.205
Profit or loss before tax
4.480.550
146.387.095
TOTAL NET EXPENSES
Financial expenses ( 1 to 4 )
52.142.864
35.291.447
Costs and expenses from business operations ( 1 do 4 )
G FINANCIAL EXPENSES (1 to 4)
11.448.111
Brockerage fees/commissions
Operating expenses
1.
1.263.358
651.317
612.041
-14.568.795
88.500.323
21.236.935
-4.902.494
81.832.183
157.883.584
-71.148.908
147.220.143
801.166
10.041.813
-627.431
136.377.164
2.
F OTHER COSTS AND EXPENSES FROM BUSINESS OPERATIONS
2.
1.
E CHANGE IN INSURANCE AND FINANCIAL CONTRACT PROVISIONS
4.
2.
1.
D CLAIMS AND BENEFITS INCURRED
TOTAL NET INCOME
Other income from business operations
C OTHER OPERATING INCOME
Financial income
B FINANCIAL INCOME
-46.389.519
-2.473.478
185.867.592
Gross premiums written
Reinsurance and co-insurance share in gross premium
1.
2.
A INSURANCE PREMIUMS
in EUR
from 1.1. to
31.12.2008
Non-life
insurance
Total
2.791.783
441.806
3.681.850
6.031.827
224.407.820
23.581.357
65.999.686
3.076.995
2.404.872
46.068.115
14.449.703
13.390.170
651.317
12.126.812
612.041
-14.568.795
121.436.607
21.186.216
-4.902.494
114.819.186
190.870.588
-71.148.908
230.439.646
962.681
27.124.159
-627.431
202.352.807
-2.423.515
205.403.752
-46.440.820
251.844.571
from 1.1. to
31.12.2008
528.742
-35.329
266.674
830.745
133.021.183
1.019.016
51.201.305
4.333.792
2.195.431
35.286.627
9.385.455
285.910
-147.152
433.062
-5.522.170
80.514.951
16.816.688
-5.617.388
69.220.433
108.878.183
-34.040.361
133.851.927
2.675.015
10.747.348
1.696.571
120.429.564
-6.564.070
125.297.063
-45.376.061
170.673.124
from 1.1. to 31.12.2007
corrected
Non-life insurance
3.626.590
-6.503
1.848.276
5.481.370
90.493.087
1.970.945
15.576.545
974.250
83.858
9.179.630
5.338.807
-231.804
42.535.311
42.767.115
30.410.286
739.072
29.671.214
29.747.186
-75.972
95.974.457
130.086
32.123.283
63.721.088
110.494
63.610.594
-64.186
63.674.781
4.155.332
-41.832
2.114.950
6.312.114
223.514.270
2.989.961
66.777.850
5.308.042
2.279.289
44.466.257
14.724.263
-231.804
42.821.221
-147.152
42.767.115
433.062
-5.522.170
110.925.237
17.555.760
-5.617.388
98.891.647
138.625.369
-34.116.333
229.826.384
2.805.101
42.870.631
1.696.571
184.150.652
-6.453.576
188.907.657
-45.440.247
234.347.905
Total
from 1.1. to 31.12.2007
corrected
Life insurance
from 1.1. to 31.12.2007
corrected
Income Statement by Reporting Segments
5.
NOTES TO FINANCIAL STATEMENTS
5.1
Intangible Assets
in EUR, rounded
31. 12. 2008
Deferred acquisition costs
Other non-current deferred costs and accrued revenues
Software
Other intangible assets
Assets in acquisition
31. 12. 2007
10,477,269
25,664
225,153
224,611
5,280
Total intangible assets
6,019,991
30,359
249,061
200,836
9,240
10,957,977
6,509,487
In 2008 the Company began disclosing also deferred insurance acquisition costs, which are transferred under
intangible assets in the period in which they are charged to the insured persons. Compared to business
year 2007, intangible assets increased by 6.9 per cent. The increase was entirely the result of the increase
of deferred costs, which grow in accordance with the growth of gross premium. Under intangible assets the
insurance company holds no intangible assets created inside the Company as well as no intangible assets
acquired with the aid of the state.
Table of the intangible assets movement in 2008
in EUR, rounded
Other intangible
assets
Software
Assets in
acquisition
process
Total
PURCHASE VALUE
As at 1. 1. 2008
Transfer into use
Transfers from assets in acquisition
process
Disposals
As at 31. 12. 2008
1,504,645
227,580
9,240
1,741,465
-
-
125,040
125,040
67,838
61,162
-129,000
0
-231,590
-
-
-231,590
1,340,893
288,743
5,280
1,634,916
1,255,584
26,744
0
1,282,329
VALUE ADJUSTMENT
As at 1. 1. 2008
Depreciation
Disposals
As at 31. 12. 2008
90,238
-230,082
37,388
-
-
127,625
-230,082
1,115,740
64,132
0
1,179,872
Present value 1. 1. 2008
249,061
200,836
9,240
459,137
225,153
224,611
5,280
455,044
F I N A N C I A L
R E P O R T
103
Table of the intangible assets movement in 2007
in EUR, rounded
Other intangible
assets
Software
Assets in
acquisition
process
Total
PURCHASE VALUE
As at 1. 1. 2007
Transfer into use
process
Other reductions
As at 31. 12. 2007
1,380,990
23,722
31,195
1,435,907
-
8,255
312,743
320,997
130,839
203,858
-334,697
0
-7,184
-
-
-7,184
1,504,645
227,580
9,240
1,741,466
1,185,225
23,722
0
1,208,947
VALUE ADJUSTMENT
As at 1. 1. 2007
Depreciation
Other reductions
As at 31. 12. 2007
77,543
-7,184
3,023
-
80,566
-7,184
-
1,255,584
26,744
0
1,282,328
195,765
45,164
31,195
272,123
249,061
200,836
9,240
459,137
The Company’s intangible assets are not pledged as security for debts and there are no legal restrictions
placed on them either. Financial liabilities on account of purchase of intangible assets amounted to EUR
29,583 (on 31.12.2007: EUR 46,800) on 31.12.2008.
In 2008 the Company did not change depreciation rates and all intangible assets have a useful life. Depreciation
of intangible assets, recognised in the Profit and Loss Account under operating costs, amounts to EUR 127,625
for 2008 (2007: EUR 80,565). The Company assessed that on 31.12.2008 there were no signs of intangible
assets impairment.
5.2
Land, Buildings and Equipment – Tangible Fixed Assets
in EUR, rounded
31. 12. 2008
Land
Buildings
Equipment and small tools
541,315
9,344,198
3,184,310
Total land, buildings and equipment
13,069,824
31. 12. 2007
541,315
9,920,640
2,968,225
13,430,181
The Company’s tangible fixed assets are not pledged as security for debts nor there any legal restrictions
placed on them. Financial liabilities on account of purchase of tangible fixed assets on 31.12.2008 amounted
to EUR 154,716 (on 31.12.2007: EUR 9,353) on 31.12.2008.
F I N A N C I A L
R E P O R T
104
Changes in land, buildings and equipment in 2008
in EUR, rounded
Equipment
and small
tools
Land
Buildings
541,315
15,357,563
Assets in
acquisition
process
Total
PURCHASE VALUE
As at 1. 1. 2008
Transfer into use
Transfers from assets in acquisition process
Disposals
Other reductions
As at 31. 12. 2008
10,781,912
0
26,680,790
-
7,980
-
1,572,130
1,580,110
-
67,788
1,504,341
-1,572,130
-1
-
-16,262
-954,467
-
-
-954,467
-16,262
541,315
15,442,732
11,331,786
0
27,315,834
0
5,436,924
7,813,685
0
13,250,609
VALUE ADJUSTMENT
As at 1. 1. 2008
Depreciation
Disposals
As at 31. 12. 2008
-
635,946
-
1,213,740
-879,949
1,849,686
-879,949
-
0
6,072,870
8,147,476
0
14,220,346
541,315
9,920,639
2,968,227
0
13,430,182
541,315
9,344,198
3,184,310
0
13,069,824
In 2008 the Company did not change depreciation rates. Depreciation of tangible fixed assets, recognised in the
Profit and Loss Account under operating costs, amounted to EUR 1,848,668 in 2008 (2007: EUR 1,782,816).
The Company assessed that on 31.12.2008 there were no signs of impairment of land, buildings and equipment.
Changes in land, buildings and equipment in 2007
In EUR, rounded
Land
Buildings
Equipment
and small
tools
Assets in
acquisition
process
544,499
15,173,617
10,424,526
Total
PURCHASE VALUE
As at 1. 1. 2007
Transfer into use
process
Disposals
Transfer to assets available for sale
Other reductions
As at 31. 12. 2007
88,252
26,230,895
-
8,255
-
1,358,895
1,367,150
449
346,616
1,100,083
-1,447,147
0
-1,337
-2,295
-
-66,214
-90,175
-14,535
-742,696
-
-
-810,248
-92,470
-14,535
541,316
15,357,563
10,781,912
0
26,680,792
0
4,836,283
7,292,869
0
12,129,152
VALUE ADJUSTMENT
As at 1. 1. 2007
Depreciation
Disposals
As at 31. 12. 2007
-
631,742
-20,073
-11,028
1,152,021
-631,206
-
-
1,783,763
-651,279
-11,028
0
5,436,924
7,813,685
0
13,250,608
544,499
10,337,334
3,131,656
88,252
14,101,743
541,315
9,920,640
2,968,225
0
13,430,181
F I N A N C I A L
R E P O R T
105
5.3
Investment Property
in EUR, rounded
31. 12. 2008
Land
Buildings
31. 12. 2007
17,684
756,907
Total investment property
17,684
840,717
774,591
858,401
On account of the sale of investment property and reallocation of investment property to assets available for
sale, the Company’s investment property was reduced by 10 per cent in the reporting period.
Changes in investment property in 2008
in EUR, rounded
Land
Buildings
Total
PURCHASE VALUE
As at 1. 1. 2008
17,684
Disposals
1,690,630
-
As at 31. 12. 2008
1,708,314
-44,881
-51,937
-44,881
-51,937
17,684
1,593,812
1,611,496
0
849,913
849,913
VALUE ADJUSTMENT
As at 1. 1. 2008
Depreciation
Reductions
-
As at 31. 12. 2008
45,580
-32,238
-26,350
45,580
-32,238
-26,350
0
836,905
836,905
17,684
840,717
858,401
17,684
756,907
774,591
Changes in investment property in 2007
In EUR, rounded
Land
Buildings
Total
PURCHASE VALUE
As at 1. 1. 2007
New acquisitions
Disposals
As at 31. 12. 2007
2,379
15,305
-
1,894,776
40,292
-227,018
-17,420
1,897,155
55,597
-227,018
-17,420
17,684
1,690,630
1,708,314
0
916,606
916,606
-
49,238
-109,417
-6,514
49,238
-109,417
-6,514
0
849,913
849,913
2,379
978,170
980,549
17,684
840,717
858,401
VALUE ADJUSTMENT
As at 1. 1. 2007
Depreciation
Reductions
As at 31. 12. 2007
F I N A N C I A L
R E P O R T
106
Under investment property, the Company predominantly discloses apartments acquired in past recovery
procedures due to unpaid premiums. Apartments are occupied and are not unconditionally realisable,
therefore they are not classified under assets held for sale. Due to restrictions regarding free disposal of the
investment properties their fair value cannot be assessed in a reliable manner. Among the investment property
the Company disclosed also a property financed from traditional life insurance long-term business fund. The
investment property was acquired in return for an agreed annuity payment and cannot be sold by the Company
in the period of annuity payment due to the personal easement usufruct for life right on the investment property
of the annuity recipient. Due to the above restriction regarding free disposal of the investment property its fair
value cannot be assessed in a reliable manner since no active market exists for such property. Any gain on
property will only be achieved upon sale.
In the Profit and Loss Account for 2008, the Company recognised revenues from rents for leased investment
property in the amount of EUR 115,051 (2007: EUR 125,668). Direct expenses in the amount of EUR 71,494
(2007: EUR 90,589), recognised in the Profit and Loss Account, arise solely from property generating revenues
from rents. In business year 2008 the Company recognised also generated profits from investment property
sale in the amount of EUR 81,372, while it realised losses in the amount of EUR 6.162 arising from investment
property sale in 2007. The Company assessed that on 31.12.2008 there were no signs of investment property
impairment.
5.4
Investments in Dependent Entities
Changes in investments in dependent entities
In EUR, rounded
2008
As at 1. 1.
9,362,547
Increase of participating interest in the company Velebit usluge d.o.o.
Sale of participating interest in Velebit usluge
d.o.o.
2006
136,188
0
-
9,226,359
136,188
-9,362,547
-
-
As at 31. 12.
5.5
2007
0
9,362,547
136,188
Financial Assets
In 2008 the Company did not reallocate disclosed financial investments between individual classes of financial
assets.
F I N A N C I A L
R E P O R T
107
Classes of the Company’s financial assets:
31. 12. 2008
in EUR, rounded
BUSINESS
FUND /
LONG-TERM
BUSINESS
FUND
OWN
SOURCES
31. 12. 2007
TOTAL
BUSINESS
FUND /
LONG-TERM
BUSINESS
FUND
OWN
SOURCES
TOTAL
Assets in non-life insurance
At fair value through
profit/loss account
946,102
1,249,150
2,195,252
-
1,502,650
1,502,650
946,102
1,249,150
2,195,252
-
1,502,650
1,502,650
Available for sale
4,732,100
105,514,601
110,246,701
7,147,901
87,566,354
94,714,255
- debt securities
4,491,053
100,998,349
105,489,402
6,906,854
83,803,455
90,710,309
4,491,053
100,998,349
105,489,402
6,906,854
83,803,455
90,710,309
241,047
4,516,252
4,757,299
241,047
3,762,899
4,003,946
-
2,531,624
2,531,624
-
871,862
871,862
241,047
1,984,628
2,225,675
241,047
2,891,037
3,132,084
3,938,466
22,659,644
26,598,110
4,247,580
22,574,864
26,822,444
609,557
1,331,724
1,941,281
875,498
1,628,603
2,504,101
3,328,909
21,327,920
24,656,829
3,372,082
20,946,261
24,318,343
- debt securities
- trading
- debt securities
- trading
- non-trading
Loans and deposits
- loans
- deposits
Total
9,616,668
129,423,395
139,040,063
11,395,481
111,643,868
123,039,349
Assets in life insurance
profit/loss account
1,961,854
42,624,604
44,586,458
2,265,641
- debt securities
1,961,854
11,290,494
13,252,348
2,265,641
7,121,209
9,386,850
-
31,334,110
31,334,110
-
26,794,567
26,794,567
Available for sale
4,144,957
240,506,953
244,651,910
6,832,994
265,089,906
271,922,900
- debt securities
3,842,422
221,611,303
225,453,725
6,831,834
226,818,437
233,650,271
3,842,422
221,611,303
225,453,725
6,831,834
226,818,437
233,650,271
302,535
18,895,650
19,198,185
1,160
38,271,469
38,272,629
-
18,895,650
18,895,650
-
38,137,693
38,137,693
302,535
- 302,535
1,160
133,776
134,936
Loans and deposits
8,194,489
26,643,943
34,838,432
5,286,590
24,755,978
30,042,568
- deposits
8,194,489
26,643,943
34,838,432
5,286,590
24,755,978
30,042,568
- equity securities
- trading
- equity securities
- trading
- non-trading
Total
14,301,300
309,775,500
324,076,800
14,385,225
33,915,776
323,761,660
36,181,417
338,146,885
Assets of the company
profit/loss account
2,907,956
43,873,754
46,781,710
2,265,641
- debt securities
2,907,956
12,539,644
15,447,600
-
31,334,110
31,334,110
Available for sale
8,877,057
346,021,554
debt securities
8,333,475
8,333,475
- equity securities
- trading
- equity securities
- trading
- non-trading
Loans and deposits
- loans
- deposits
Total assets of company
33,915,776
37,684,067
2,265,641
8,623,859
10,889,500
-
26,794,567
26,794,567
354,898,611
13,980,895
352,656,260
366,637,155
322,609,652
330,943,127
13,738,688
310,621,892
324,360,580
322,609,652
330,943,127
13,738,688
310,621,892
324,360,580
543,582
23,411,902
23,955,484
242,207
42,034,368
42,276,575
39,009,555
-
21,427,274
21,427,274
-
39,009,555
543,582
1,984,628
2,528,210
242,207
3,024,813
3,267,020
12,132,955
49,303,587
61,436,542
9,534,170
47,330,842
56,865,012
609,557
1,331,724
1,941,281
875,498
1,628,603
2,504,101
11,523,398
47,971,863
59,495,261
8,658,672
45,702,239
54,360,911
21,010,012
439,198,895
463,116,863
23,515,065
F I N A N C I A L
R E P O R T
108
433,902,878
461,186,234
There are investments in bank bonds, which represent subordinated instruments of the issuer, in the amount
of EUR 6,890,697 (2007: EUR 3,092,758) among the Company’s financial investment.
Detailed display of financial investments in bonds
in EUR, rounded
31. 12. 2008
Fair value
31. 12. 2007
Amortised cost
Fair value
Amortised cost
Government bonds
228,800,186
227,928,758
221,953,420
223,382,566
Other bonds
110,898,295
103,155,474
110,892,799
102,200,847
Total bonds
339,698,481
331,084,232
332,846,219
325,583,413
Changes of the Company’s financial investments in 2008
Equity
securities
in EUR, rounded
Debt
securities
Deposits
Loans
Total
As at 1. 1.
4,003,948
92,212,958
24,318,343
2,504,099
123,039,348
New acquisitions
4,737,478
22,698,843
91,770,123
176,000
119,382,444
Disposal, maturity
-902,725
-12,682,362
-92,507,474
-755,242
-106,847,803
change of fair value – in capital
-250,938
1,581,186
-
-
1,330,248
-
5,006
-
-
5,006
-2,830,464
-
-
-
-2,830,464
-
-337,613
-
-
-337,613
-
4,206,636
1,075,835
16,426
5,298,897
change of fair value – from capital in profit/
loss account – sales
loss account – impairments
change of fair value through profit/loss account
change of amortised cost
As at 31. 12.
4,757,299
107,684,654
24,656,827
1,941,283
139,040,063
65,067,196
243,037,120
30,042,570
0
338,146,886
As at 1. 1.
New acquisitions
29,192,072
21,739,427
81,685,624
-
132,617,123
Disposal, maturity
-6,688,117
-33,523,631
-78,075,452
-
-118,287,200
-22,243,236
579,653
-
-
-21,663,583
-222,505
-1,094,070
-
-
-1,316,575
-6,542,720
-
-
-
-6,542,720
-8,030,395
-2,583,299
-
-
-10,613,694
-
10,550,870
1,185,693
-
11,736,563
As at 31. 12.
50,532,295
238,706,070
34,838,435
0
324,076,800
69,071,144
335,250,078
54,360,913
2,504,099
461,186,234
Total financial assets
As at 1. 1.
New acquisitions
33,929,550
44,438,270
173,455,747
176,000
251,999,567
Disposal, maturity
-7,590,842
-46,205,993
-170,582,926
-755,242
-225,135,003
-22,494,174
2,160,839
-
-
-20,333,335
-222,505
-1,089,064
-
-
-1,311,569
change of fair value - from capital in profit/loss
account – sales
F I N A N C I A L
R E P O R T
109
-9,373,184
-
-
-
-9,373,184
-8,030,395
-2,920,912
-
-
-10,951,307
As at 31. 12.
-
14,757,506
55,289,594
346,390,724
2,261,528
59,495,262
16,426
1,941,283
17,035,460
463,116,863
Changes of the Company’s financial investments in 2007
in EUR, rounded
Equity
securities
Debt
securities
Deposits
Loans
Total
As at 1. 1.
4,666,934
New acquisitions
Disposal, maturity
31,448,444
2,856,706
111,243,764
-
25,370,669
167,966,109
546,400
193,883,178
-856,670
-3,204,200
-175,154,977
-912,632
-180,128,479
193,684
-1,814,430
-
-
-1,620,746
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-410,761
58,766
13,625
-338,370
change of fair value - from capital in profit/
As at 31. 12.
72,271,680
4,003,948
92,212,958
47,663,522
223,022,772
24,318,343
2,504,099
123,039,348
As at 1. 1.
27,048,595
0
297,734,889
New acquisitions
16,434,436
53,260,540
101,748,630
-
171,443,606
Disposal, maturity
-4,710,717
-25,044,806
-98,762,587
-
-128,518,110
20,094,868
-5,869,770
-
-
14,225,098
-15,696,176
-1,675,157
-
-
-17,371,333
-
-
-
-
-
1,281,263
-72,703
-
-
1,208,560
-
-583,755
7,932
-
-575,823
As at 31. 12.
65,067,196
243,037,121
30,042,570
52,330,456
295,294,452
58,497,039
#VREDN!
338,146,887
Total financial assets
As at 1. 1.
2,856,706
408,978,653
New acquisitions
16,434,436
78,631,209
269,714,739
546,400
365,326,784
Disposal, maturity
-5,567,387
-28,249,006
-273,917,564
-912,632
-308,646,589
20,288,552
-7,684,200
-
-
12,604,352
-15,696,176
-1,675,157
-
-
-17,371,333
-
-
-
-
-
1,281,263
-72,703
-
-
1,208,560
As at 31. 12.
52,636,708
-994,516
335,250,079
66,698
54,360,912
F I N A N C I A L
R E P O R T
110
13,625
2,504,099
-914,193
461,186,234
5.6
Assets of Reinsurers and Co-insurers
in EUR, rounded
31. 12. 2008
31. 12. 2007
Assets from reinsurance contracts
68,256,732
54,505,827
- from unearned premiums
16,367,283
17,005,871
- from provisions for claims outstanding
51,812,155
37,499,957
- from other technical provisions
Assets from co-insurance contracts *
- from provisions for claims outstanding
77,294
0
268,547
105,773
268,547
Total reinsurerers’ and coinsurers’ assets
105,773
68,525,279
54,611,601
* Amounts ceded to co-insurance
Recognised assets of reinsurers and coinsurers are all classified in the non-life insurance class and with
regard to their maturity all represent current assets of the Company.
The Company’s reinsurance business is 96 per cent linked to Sava Reinsurance Company. Travel assistance
insurance is entirely a result of co-operation with AXA Reinsurance Company. Long-term credit-rating and
financial strength rating of Sava Reinsurance Company has been since 2005 regularly assessed by the wellknown American agency Standard & Poor’s, which can issue the AAA (highest) and D (lowest) rating to the
Company. The rating shows the degree of risk of the company’s business operations. The rating of Sava
Reinsurance Company between 2005 and August 2008 was BBB+, while the last data at the Company’s
disposal on the day of the annual report composition (September 2008) show that the rating grew to A-.
Based on this, the Company assesses that the repayable value of receivables arising from co- and reinsurance
contracts equals the accounting value, therefore the Company did not carry out any impairments.
5.7
Receivables from Insurance Transactions
Non-life insurance
in EUR, rounded
31. 12.
2008
Life insurance
31. 12. 2007
31. 12.
2008
31. 12.
2007
Receivables from
policyholders
38,606,859
39,775,651
1,267,846
historical cost
45,205,460
45,186,784
value adjustment
-6,598,601
-5,411,133
Receivables from
insurance brokers
395,738
historical cost
value adjustment
Total
31. 12. 2008
31. 12.
2007
1,260,429
39,874,706
41,036,079
1,866,233
2,427,887
47,071,693
47,614,671
-598,387
-1,167,458
-7,196,988
-6,578,591
323,811
0
0
395,738
323,811
563,473
458,286
-
-
563,473
458,286
-167,735
-134,474
-
-
-167,735
-134,474
Receivables from co- and
reinsurance
25,269,236
11,594,066
0
0
25,269,236
11,594,066
historical cost
25,269,236
11,594,066
-
-
25,269,236
11,594,066
-
-
-
-
0
0
480,209
567,923
0
0
480,209
567,923
value adjustment
Recourse receivables
historical cost
18,366,591
18,681,334
-
-
18,366,591
18,681,334
-17,886,382
-18,113,411
-
-
-17,886,382
-18,113,411
Other receivables from
insurance operations
274,849
266,752
13,307
24,161
288,156
290,913
historical cost
325,732
339,026
13,307
24,161
339,039
363,187
value adjustment
-50,883
-72,274
-
-
-50,883
-72,274
value adjustment
Total
65,026,892
52,528,203
1,281,153
F I N A N C I A L
R E P O R T
111
1,284,590
66,308,045
53,812,793
In accordance with its accounting policies, the Company fully impaired receivables arising from insurance
operations in the amount of EUR 14,504,606 (2007: EUR 15,101,015). Recourse receivables represent 85 per
cent of such receivables arising from insurance operations.
In the Profit and Loss Account of 2008, the Company disclosed impairments of receivables in the amount of
EUR 1,645,732 (2007: EUR 3,526,074) and definitive cancellations due to inability of due receivables recovery
in the amount of EUR 942,556 (2007: EUR 1,663,540). The Company did not impair receivables arising from
coinsurance and reinsurance contracts in 2008 as it assesses that the repayable value of the latter receivables
is equal to disclosed accounting value.
All receivables arising from insurance operations are current receivables.
5.8
Deferred Receivables and Liabilities for Tax
In the calculation of deferred tax receivables/liabilities, the Company took into account the maturity of items
and statutory descending tax rates.
Display of deferred taxes with regard to the origin
Receivables
in EUR, rounded
Financial investments
Provisions for employees
Other deductible temporary differences
Total
31. 12.
2008
-
31. 12.
2007
-
520,462
19,739
540,202
Net Balance of Receivables
- Liabilities
Liabilities
31. 12.
2008
31. 12.
2007
1,201,445
536,552 308,504
845,055
6,308,360
-
186,611
1,388,056
644,507
6,952,866
31. 12.
2008
-1,201,445
31. 12.
2007
-6,308,360
520,462
536,552
-166,872
-336,003
-847,854
-6,107,811
The Company does not establish receivables for deferred taxes on account of tax non-recognisable values
with impairment of assets as it cannot ensure that these values will be eliminated in the manner recognised
by fiscal legislation.
Effects of deferred taxes on the Profit and Loss Account are disclosed under 26).
F I N A N C I A L
R E P O R T
112
5.9
Other Assets
Items of other assets in the balance sheet
in EUR, rounded
31. 12. 2008
31. 12. 2007
Non-current receivables from business operations
146,895
Historical cost
146,895
917,553
0
-562,844
Value adjustment
Current receivables from financing
354,709
43,330
61,436
248,153
384,059
-204,823
-322,623
Current receivables from government institutions
99,539
1,370,757
Historical cost
99,539
1,370,757
Historical cost
Value adjustment
Value adjustment
0
0
Other assets
1,206,673
1,113,522
Historical cost
1,291,836
1,205,694
Value adjustment
-85,163
-92,172
Deferred costs and accrued revenues
590,809
480,383
Total other assets
2,087,246
3,380,807
Under other assets, the Company discloses receivables for deposits and interests fallen due, receivables for
loans fallen due, receivables for value added tax on leasing paid in advance, receivables for repayment of
fees and remunerations from profit, doubtful and disputed receivables from clients and receivables declared in
receivership. An adjustment of value in the total amount of receivables was created for doubtful and disputed
receivables from clients and receivables declared in receivership.
Deferred items of the Company under deferred costs and accrued revenues:
in EUR, rounded
31. 12. 2008
31. 12. 2007
392,279
198,530
Coupon interests, un-invoiced premium referring to the accounting year
Other current deferred costs and expenses
Total other assets
590,809
333,887
146,496
480,383
5.10 Non-Current Assets Held for Sale
in EUR, rounded
31. 12. 2008
31. 12. 2007
2,295
86,992
9,362,547
Land
Buildings
Participating interest in Velebit usluge d.o.o.
9,451,834
Total
2,295
72,310
0
74,605
In 2008 the Company reallocated a financial investment – participating interest in the company Velebit usluge
d.o.o. – and two vacated apartments to non-current assets held for sale.
F I N A N C I A L
R E P O R T
113
The Company concluded an agreement on sale of the participating interest in the company in Croatia with a
deferred condition tied to the consent of the Croatian Financial Services Supervisory Agency (HANFA) and
received a part of the purchase price. As such consent is an essential element of the agreement, conditions
for cancellation of participating interest recognition were not met on 31.12.2008. The sale was made in the first
quarter of 2009.
In 2008 the Company made EUR 6,734 of profit from disposal of non-current assets held for sale.
Changes of non-current assets held for sale in 2008
in EUR, rounded
Participating interest in
Velebit usluge d.o.o.
Land and buildings
74,605
As at 1. 1. 2008
0
-10,905
25,587
Disposals
Reallocations during the year
74,605
9,362,547
89,287
As at 31. 12. 2008
Total
-10,905
9,388,134
9,362,547
9,451,834
Changes of non-current assets held for sale in 2007
in EUR, rounded
Land and buildings
As at 1. 1. 2007
Participating interests
0
Reallocations during the year
0
74,605
As at 31. 12. 2007
Total
0
-
74,605
74,605
0
74,605
5.11 Cash and Cash Equivalents
in EUR, rounded
31. 12. 2008
31. 12. 2007
30,409
426,717
191,480
Ready cash in hand
Cash in bank
Cash equivalents
648,607
Total cash and cash equivalents
29,296
362,750
195,459
587,505
The Company has no automatic borrowings agreed with banks on current accounts. Cash equivalents include
overnight deposits with banks and receivables for cheques sent to be cashed in.
F I N A N C I A L
R E P O R T
114
5.12 Capital
Structure of the Company’s capital
in EUR, rounded
31. 12. 2008
31. 12. 2007
28,426,181
2,811,907
2,811,907
14,134,023
3,642,151
1,143,317
9,348,555
4,073,152
4,445,463
5,627,169
-1,181,705
1,082,708
Share capital
Capital reserves
- general revaluation adjustment of the capital
Reserves from profit
- statutory reserves
- risk equalising reserves
- other reserves from profit
Net profit or loss brought forward
Fair value reserve
- from financial instruments, available for sale
- deferred tax adjustment
Profit or loss for the period
54,973,434
Total capital in the balance sheet
28,426,181
2,811,907
2,811,907
12,424,948
2,842,618
233,775
9,348,555
2,118,253
21,272,217
27,272,073
-5,999,856
1,954,899
69,008,404
Share capital of the Company did not change in the reporting period. It is divided into 6,812,050 ordinary
shares in lots. Shares are not divided into classes and all amounts have been paid in.
Largest shareholders and their share in share capital
Name of shareholder
Total No. of shares
Nova KB Maribor d.d.
Pozavarovalnica Sava d.d.
Probanka Maribor d.d.
Perutnina d.d. Ptuj
Aktiva naložbe d.d. Ljubljana
3,403,382
3,118,968
177,100
54,500
10,000
% votes
49.961
45.786
2.600
0.800
0.147
On 31 December 2008 the Company had 26 shareholders, 17 legal entities (99.83 per cent of capital) and 6
natural persons (0.17 per cent of capital). The number of shareholders did not change in the reporting period.
Capital reserves in the amount of EUR 2,811,907 had been created by the Company until 2006 and represent
cumulative revaluation adjustments of capital in the period of statutory capital revalorisation.
In 2008 reserves from profit were increased by a share of net profit in the amount of EUR 799,533 which was
allocated by the Management Board in accordance with its competences to creation of statutory reserves for
life insurances, and a share of net profit which was allocated by the Management Board in accordance with
the Insurance Act to creation of equalisation reserves for non-life insurances.
On the basis of the General Assembly’s decision on 1 July 2008, the Company should in 2008 pay dividends
to shareholders from distributable profit of 2007 in the total amount of EUR 2,043,615 (2007: 2,100,000 EUR)
or EUR 0.30 (2007: EUR 0.31) per share. Due to provision of the Insurance Act which prohibits payment
of dividends and remunerations of insurance companies in the event of the company’s capital inadequacy,
dividends were not paid out. The Insurance Supervision Agency notified the Company of legal reservations
and potential consequences in the event of payment of dividends. Based on this, the Company’s General
Assembly changed its decision on distribution of balance sheet profit in March 2009 as it is described in
explanatory note 34 Events After The Balance Sheet Date. Total distributable profit of 2007 is thus disclosed
under withheld profit in capital.
F I N A N C I A L
R E P O R T
115
In accordance with insurance conditions, fair value reserve in the amount of EUR 4,486,425 arising from
financial investments of the traditional life insurance long-term business fund would in the amount of 80 per
cent (EUR 3,589,140) go to insured persons, traditional life insurance policy holders, and not to the Company’s
shareholders in the event of its actual realisation by selling the financial investment.
Movement of fair value reserve
Long-term business
fund – life insurance
in EUR, rounded
As at 1. 1. 2007
Increase of fair value reserve
Use of fair value reserve
Transfer of fair value reserve to profit/loss
account - sale
Transfer of fair value reserve to profit/loss
account – impairment
Change in deferred tax liabilities
Other
investments
TOTAL
24,492,742
178,218
24,670,960
26,009,815
-11,784,717
1,638,839
-3,260,738
27,648,654
-15,045,456
-17,371,333
-
-17,371,333
-
-
-
1,010,259
359,133
1,369,392
As at 31. 12. 2007
22,356,766
-1,084,549
21,272,217
As at 1. 1. 2008
22,356,766
-1,084,549
21,272,217
Increase of fair value reserve
Use of fair value reserve
Transfer of fair value reserve to profit/loss account - sale
Transfer of fair value reserve to profit/loss account – impairment
Change in deferred tax liabilities
As at 31. 12. 2008
10,247,501
-38,404,349
-1,358,940
5,154,405
-6,704,208
47,504
15,401,906
-45,108,557
-1,311,437
6,542,720
2,830,464
9,373,184
5,110,969
-292,819
4,818,151
4,494,667
-49,204
4,445,463
5.13 Subordinated Debt
The Company’s subordinated liabilities are comprised of bonds issued by the Company. In the current business
year, the Company issued a new lot of bonds, namely Zavarovalnica Maribor d.d. Bonds of Second Issue. The
Company sold the entire issue of bonds at par value.
The purpose of issuing bonds is to ensure statutory capital adequacy of the Company, which is increasing due
to the growth of business operations scope and the amount of revenues from insurance premiums on the one
hand, and scope of technical provisions for claims outstanding and a higher share of own equalisation of risks
on the other hand. Issued bonds of the Company, which have the status of subordinated debt, possess the
following characteristics:
F I N A N C I A L
R E P O R T
116
Type of bond
Bond ZVM1
Dematerialised registered bond,
one issue
Bond ZVM2
Dematerialised registered bond,
one issue
Issue date
25.5.2002
25.8.2008
Maturity of last coupon date and
principal
25.5.2009
25.8.2015
TOM + 5%, fixed interest rate of 5 % p. a.
fixed 7.5 % p. a.
9,649,432 EUR
7,000,000 EUR
231,239 lots
with nominal value of EUR 41.73
700 lots
with nominal value of EUR 10,000
Coupon interest rate
Nominal value of the issue
Volume of the issue
Accounting value of subordinated bonds on 31.12.2008 amounted to EUR 19,833,765 (2007: EUR 12,093,800),
of which EUR 14,283,765 (2007: EUR 6,863,800) of own sources in non-life insurances and EUR 5,550,000
(2007: EUR 5,230,000) of own sources in life insurances. Bonds do not contain the clause on call prior to their
maturity nor do they ensure the right to exchange them for other securities.
ZVM1 Bond in the amount of EUR 12,833,765 matures in May 2009.
Issued subordinated bonds are not listed on the stock exchange, therefore the Company cannot estimate their
fair value reliably.
5.14 Insurance Contracts Liabilities
Apart from mathematical provisions, future liabilities to insured persons consist of provisions for future claims
payments or provisions for claims outstanding, provisions for bonuses and rebates and other provisions. In
the broadest sense, insurance contracts liabilities and technical provisions include also unearned premiums.
F I N A N C I A L
R E P O R T
117
in EUR without cents
31.12. 2008
31.12. 2007
INSURANCE CONTRACTS LIABILITIES OF NON-LIFE INSURANCES
UNEARNED PREMIUMS Provisions for unearned premiums
Share of unearned premiums in coinsurance
Share of unearned premiums in reinsurance
75,399,656
6,872
-16,367,283
72,313,010
18,029
-17,005,871
Total gross unearned premiums
75,406,528
72,331,039
Total net unearned premiums
59,039,245
55,325,168
60,748,001
80,020,599
-1,227,438
5,658,075
163,577
-51,812,155
-268,547
50,112,209
66,758,628
-432,878
7,524,342
257,400
-37,499,957
-105,773
PROVISIONS FOR CLAIMS OUTSTANDING Incurred and reported claims reserve - inventory
Incurred but not reported claims reserve – IBNR
Recourse provisions
Provision for appraisal costs
Share of provisions assumed from coinsurance
Share of provisions in reinsurance
Share of provisions ceded in coinsurance
Total gross provisions for claims outstanding
145,362,814
124,219,702
93,282,112
86,613,972
Total net provisions for claims outstanding
PROVISIONS FOR BONUSES AND REBATES
Provisions for bonuses and rebates
210,246
-77.294
320,491
-
Total gross provisions for bonuses and rebates
210,246
320,491
Total net provisions for bonuses and rebates
132,951
320,491
4,473,117
3,821,800
OTHER TECHNICAL PROVISIONS
Provisions for unexpired risks
Total gross other technical provisions
4,473,117
3,821,800
Total net other technical provisions
4,473,117
3,821,800
Total gross insurance contracts liabilities
225,452,705
200,693,032
Total share of liabilities in co- and reinsurance
(explanatory note 6)
-68,525,279
-54,611,601
Total net insurance contracts liabilities
156,927,426
146,081,431
F I N A N C I A L
R E P O R T
118
31.12. 2008
31.12. 2007
INSURANCE CONTRACTS LIABILITIES OF LIFE INSURANCES
- from traditional life insurances
- from unit-linked life insurances
780,708
766,252
14,457
0
830,672
821,172
9,500
0
780,708
830,672
780,708
830,672
MATHEMATICAL PROVISIONS
224,343,715
45,537,836
Total mathematical provisions
269,881,551
227,929,751
33,923,296
261,853,047
PROVISIONS FOR CLAIMS OUTSTANDING
Incurred and reported claims reserve
2,817,295
2,445,577
371,718
7,668,244
6,704,791
963,453
1,117,642
1,060,719
56,923
0
Total provisions for claims outstanding
F I N A N C I A L
R E P O R T
119
2,883,876
2,730,539
153,337
7,950,703
7,328,032
622,671
819,320
757,855
61,465
0
11,603,181
11,653,899
282,265,441
274,337,619
0
0
282,265,441
274,337,619
31.12. 2008
31.12. 2007
INSURANCE CONTRACTS LIABILITIES OF THE COMPANY
76,187,236
73,161,711
0
0
-16,367,283
-17,005,871
76,187,236
73,161,711
59,819,953
56,155,840
PROVISIONS FOR CLAIMS OUTSTANDING Incurred and reported claims reserve - inventory
63,565,296
52,996,085
87,688,843
74,709,331
Recourse provisions
-1,227,438
-432,878
6,775,717
8,343,662
Share of provisions assumed from coinsurances
Share of provisions ceded in coinsurance
163,577
257,400
-51,812,155
-37,499,957
-268,547
-105,773
Total gross provisions for claims outstanding
156,965,995
135,873,601
104,885,293
98,267,871
PROVISIONS FOR BONUSES AND REBATES Provisions for bonuses and rebates
210,246
-77,294
320,491
0
Total gross provisions for bonuses and rebates
210,246
320,491
Total net provisions for bonuses and rebates
132,951
320,491
MATHEMATICAL PROVISIONS Mathematical provisions
269,881,551
261,853,047
Total gross mathematical provisions
269,881,551
261,853,047
Total net mathematical provisions
269,881,551
261,853,047
4,473,117
3,821,800
Total gross other technical provisions
4,473,117
3,821,800
4,395,823
3,821,800
507,718,146
475,030,651
-68,525,279
-54,611,601
439,192,867
420,419,049
F I N A N C I A L
R E P O R T
120
Movements of insurance contracts liabilities in 2008:
Balance on
1.1.
Increase
Reduction
Balance on
31.12.
Non-life insurances
Provisions for unearned premiums
Provisions for claims outstanding
Total movements of provisions for non-life insurances
72,331,039
73,076,394
70,000,905
75,406,528
124,219,702
61,827,378
40,684,266
145,362,814
320,491
935,228
1,045,473
210,246
3,821,800
4,096,067
3,444,750
4,473,117
200,693,032
139,935,067
115,175,394
225,452,705
Life insurances
821,172
Total movements of provisions for life insurances
100,458
155,378
766,252
10,816,427
3,419,151
4,024,489
10,211,089
227,929,751
23,023,888
26,609,924
224,343,715
239,567,350
27,408,997
30,789,791
236,186,555
Unit-linked life insurances
9,500
6,279
1,322
14,457
837,473
1,016,474
461,854
1,392,093
33,923,296
12,437,320
822,780
45,537,836
Total movements of provisions for unit-linked life insurances
34,770,269
13,460,073
1,285,956
46,944,386
Total
73,161,711
73,183,131
70,157,605
76,187,237
135,873,602
66,263,003
45,170,609
156,965,996
261,853,047
35,461,208
27,432,704
269,881,551
320,491
935,228
1,045,473
210,246
3,821,800
4,096,067
3,444,750
4,473,117
475,030,652
179,938,638
F I N A N C I A L
R E P O R T
121
147,251,142
507,718,146
Movements of insurance contracts liabilities in 2007:
Balance on
1.1.
Increase
Balance on
31.12.
Reduction
Non-life insurances
65,457,001
70,242,931
63,368,893
72,331,039
107,324,970
56,290,180
39,395,448
124,219,702
0
320,491
-
320,491
3,968,952
176,750,923
126,853,602
147,152
3,821,800
200,693,032
102,911,493
Life insurances
935,197
40,014
154,039
821,172
10,677,883
4,320,620
4,182,076
10,816,427
206,131,760
44,821,528
23,023,537
227,929,751
217,744,840
Total movements of provisions for life insurances
49,182,162
239,567,349
27,359,652
Unit-linked life insurances
5,968
3,862
330
9,500
236,945
849,119
248,591
837,473
13,140,339
21,078,966
296,009
33,923,296
231,804
-
231,804
0
Total movements of provisions for unit-linked life
insurances
13,615,056
21,931,947
34,770,269
776,734
Total
66,398,166
70,286,807
118,239,798
219,272,099
63,523,262
73,161,711
61,459,919
43,826,115
135,873,602
65,900,494
23,319,546
261,853,047
0
320,491
-
320,491
4,200,756
-
378,956
3,821,800
408,110,820
197,967,711
131,047,879
475,030,651
Balance of mathematical provisions by long-term business funds
31.12.2008
31.12.2007
Long-term business fund - traditional life insurances
Gross mathematical provisions
Gross mathematical provisions from current attribution of profit
Gross mathematical provisions for birth and death of children
Net provisions
222,196,305
207,972,262
1,451,000
19,364,580
696,410
592,909
0
0
224,343,715
227,929,751
Long-term business fund - unit-linked life insurances
Gross mathematical provisions for paid investments
Gross mathematical provisions for unpaid investments
Net provisions
43,744,744
32,665,899
1,793,093
1,257,397
0
0
45,537,836
33,923,296
269,881,551
261,853,047
0
0
Total
Gross mathematical provisions
Net mathematical provisions
269,881,551
F I N A N C I A L
R E P O R T
122
261,853,047
5.15 Provisions for Other Liabilities and Charges
in EUR, rounded
31. 12. 2008
31. 12. 2007
2,990,697
2,883,230
107,132
53,126
Other provisions
Total provisions for other liabilities and charges
3,097,830
2,936,356
Table of the movements of provisions for other liabilities and charges in 2008
in EUR, rounded
As at 1. 1.
Other provisions
2,883,230
Total
53,126
2,936,356
Formation of provisions
375,826
54,007
429,833
Utilisation of provisions
268,359
-
268,359
As at 31. 12.
2,990,697
107,132
3,097,830
Table of the movements of provisions for other liabilities and charges in 2007
in EUR, rounded
As at 1. 1.
Other provisions
2,833,008
Total
16,775
2,849,783
Formation of provisions
400,946
36,350
Utilisation of provisions
350,724
-
As at 31. 12.
2,883,230
437,296
350,724
53,126
2,936,356
5.16 Liabilities from Direct Insurance Operations
The Company discloses under liabilities from direct nsurance operations the liabilities to policyholders arising
from accounted damages or policy proceeds, liabilities to the guarantee fund at the Slovenian Insurance
Association, liabilities to insurance brokers and agents and liabilities to co-insurers and reinsurers for their
shares in premium written as well as other liabilities directly related to insurance operations.
Non-life insurance
in EUR, rounded
31.12.
2008
Life insurance
31.12.
2007
31.12.
2008
Total
31.12.
2007
31.12.
2008
31.12.
2007
Liabilities to policyholders
2,573,195
2,510,677
9,803,032
6,928,021
12,376,227
9,438,698
Liabilities for indemnity payment
2,055,989
1,730,425
67,132
589,428
2,123,121
2,319,854
517,207
780,251
9,735,900
6,338,593
10,253,107
7,118,844
1,680,434
1,899,429
0
0
1,680,434
1,899,429
13,633,660
12,003,089
0
0
13,633,660
12,003,089
13,512,333
11,806,877
-
-
13,512,333
11,806,877
121,326
196,212
-
-
121,326
196,212
1,772,170
1,775,210
203
6,934
1,772,373
1,782,144
Other liabilities to policyholders
Liabilities to insurance brokers
and agents
Liabilities from co- and
reinsurance
Liabilities to reinsurers for
accounted shares
Liabilities to insurance companies
for coinsurance premiums
Other liabilities from insurance
operations
Total liabilities from direct insurance operations
19,659,459
18,188,405
9,803,235
F I N A N C I A L
R E P O R T
123
6,934,955
29,462,695
25,123,360
The largest amount disclosed under other liabilities from insurance operations is the liability to the Slovenian
Insurance Association for claims in the amount of EUR 1,602,727 (2007: EUR 1,596,278). It is paid with recalls
in accordance with actual payments of claims to the Slovenian Insurance Association.
Other liabilities from direct insurance operations shall be fully payable in 2009.
5.17 Tax Liabilities
in EUR, rounded
31. 12. 2008
Corporate income tax liabilities
31. 12. 2007
1,743,146
Total tax liabilities
1,215,945
1,743,146
1,215,945
Disclosed income tax liability for business year 2008 becomes payable in 2009.
5.18 Other Liabilities
in EUR, rounded
31. 12. 2008
31. 12. 2007
Current liabilities to employees
1,221,909
1,136,029
Liabilities to suppliers
1,176,322
1,125,773
Other liabilities and taxes
8,456,509
2,213,368
Accrued costs and deferred liabilities
6,408,657
7,822,663
Total other liabilities
17,263,397
12,297,832
Under item Other liabilities and taxes, the Company discloses liabilities arising from corporate income tax
prepayment, current liabilities of the Company for taxes and contributions, and other current liabilities for
different current payments.
Recognised liabilities under Accrued costs and deferred liabilities become payable in 2009 and expenses will
be included in the Profit and Loss Account in 2009.
F I N A N C I A L
R E P O R T
124
5.19 Insurance Premium Revenues
Elements of disclosed net insurance premium revenues
in EUR, rounded
31.12. 2008
31.12. 2007
Non-life insurance
Gross premium written
Reinsurance commissions
185,867,592
-60,191,129
13,801,609
Net premium written (1+2)
170,673,124
-59,137,465
13,761,404
139,478,072
Change in unearned premium, gross
Change in unearned premium for re- in co-insurance
125,297,063
-2,473,478
-627,431
Total premium income net from non-life insurance
-6,564,070
1,696,571
136,377,164
120,429,564
Life insurance
Gross insurance premium written
65,976,980
-51,300
Net premium written (1+2)
63,674,781
-64,186
65,925,680
63,610,594
49,963
Total premium income net from life insurance
110,494
65,975,643
63,721,088
251,844,571
-60,242,429
13,801,609
234,347,905
-59,201,652
13,761,404
Total
Gross insurance premium written
Reinsurance commissions
Net premium written (1 + 2)
205,403,752
-2,423,515
-627,431
Total premium income net
202,352,807
F I N A N C I A L
R E P O R T
125
188,907,657
-6,453,576
1,696,571
184,150,652
Premium written for 2008 financial year by insurance classes
in EUR, rounded
Insurance class
2008
Gross
premium
written
Total net
premium
1,412,564
15,703,881
3,551,023
38,357,182
197,000
-143,787
11,063
64,276
324,160
-102,593
21,887
243,454
1,351,774
-591,917
74,673
834,530
49,787,917
Reinsurance
commission
-5,475,207
19,766,524
Vessel insurance
Premium
ceded to co-/
reinsurance
-14,993,850
Accident insurance
Aircraft insurance
Accepted
co-insurance
premium
12,092
-5,771,434
1,221,569
5,279,807
Other damage to non-life insurance
27,010,778
-9,414,246
2,066,893
19,663,425
66,258,345
-18,545,818
4,737,470
52,449,997
235,751
-219,608
12,758
28,901
Insurance against fire and natural force
9,738,405
91,267
-52,813
13,275
146,128
-2,191,344
431,775
4,412,231
-564,231
146,700
1,806,172
185,666
6,099,508
Credit insurance
2,223,703
72,292
106,807
-31,906
7,044
81,945
Miscellaneous financial loss insurance
708,743
-384,184
86,882
411,441
-808,468
2,100
-381,567
-1,077,287
3,933
376,271
Procedure costs insurance
Total non-life insurance products
Life insurance
Unit-linked life insurance products
Total life insurance products
Total ZM d.d.
422,886
1,915
1,449,625
185,867,592
177,566
36,883,294 29,093,686 65,976,980
-60,368,695
-51,300
251,844,573
177,566
-60,419,995
F I N A N C I A L
R E P O R T
126
13,801,609
139,478,072
36,831,994
29,093,686
-51,300 65,925,680
13,801,609
205,403,751
Premium written for 2007 financial year by insurance classes
in EUR, rounded
2007
Gross
premium
written
INSURANCE CLASS
Accident insurance
Aircraft insurance
Vessel insurance
18,765,775
43,071,407
261,709
248,122
1,238,454
8,662,887
23,328,099
64,612,679
Accepted
co-insurance
premium
Premium
ceded to co-/
reinsurance
4,448
148,120
13,662
6,024
139,928
5,345,323
2,701,021
42,468
610,521
357,587
1,161,019
68,542
10,643
2,380
170,673,123
Life insurance
253,819
1,461,565
3,351,776
14,767
19,354
73,827
1,143,100
1,960,475
5,035,091
14,545,439
32,736,606
-25,373
190,001
746,565
4,532,122
16,234,292
49,937,438
-105,783
9,582
29,923
-43,355
-2,025,746
-827,557
-12,741
-339,971
-686,837
-825,042
10,914
380,828
215,165
3,313
76,997
1,603
3,047
107,487
3,768,947
2,088,629
43,683
347,547
-325,267
339,024
-59,391,283
39,345,286 24,329,495 Total life insurance products
63,674,781
Total ZM d.d.
Total net
premium
-5,681,901
-13,691,025
-301,849
-77,475
-565 ,716
-5,421,985
-9,067,944
-19,716,356
126,124 Vessel liability insurance
Credit insurance
Reinsurance
commission
13,761,404
125,297,063
39,310,725
24,299,869
-34,561 -29,626 -64,187
234,347,905
253,819
-59,455,470
63,610,594
13,761,404
188,907,657
5.20 Financial Income and Expenses
The Company discloses financial income and expenses from financial assets and other assets under Financial
income and expenses.
Non-life insurance
in EUR, rounded
Financial income
31. 12. 2008
31. 12. 2007
Life insurance
31. 12. 2008
Total
31. 12. 2007
31. 12.
2008
31. 12.
2007
10,041,813
10,747,348
17,082,345
32,123,283
27,124,159
42,870,631
- from financial assets
7,012,393
8,168,368
16,512,677
32,014,403
23,525,071
40,182,771
- from other assets
3,029,420
2,578,979
569,668
108,880
3,599,088
2,687,859
Financial expenses
4,480,550
1,019,016
19,100,807
1,970,945
23,581,357
2,989,961
- from financial assets
3,297,055
364,577
18,510,397
1,545,300
21,807,453
1,909,877
- from other assets
1,183,495
654,439
590,409
425,645
1,773,904
1,080,084
F I N A N C I A L
R E P O R T
127
Detailed display of financial income
in EUR, rounded
Own
source
2008
2007
business
fund /
long-term
business
fund
business
fund /
long-term
business
fund
Own
source
Total
Total
Financial income of non-life insurance
Investment interest
Gains on investment disposal
Dividends and participation in profit
from investments
710,159
5,293,270
6,003,429
418,727
4,708,357
5,127,084
74,637
446,804
521,441
36,304
2,181,805
2,218,109
257,576
90,948
348,524
259,733
352,352
612,085
-
-
-
-
3,891
3,891
10,017
12,140
22,157
12,107
69,426
81,533
116,842
-
116,842
125,668
-
125,668
-
3,029,420
3,029,420
-
2,578,979
2,578,979
Change of fair value of
investments
Elimination of investment
impairments
Other financial income from
investments
Financial income from business
relations
Total
1,169,231
8,872,582
10,041,813
852,539
9,894,810
10,747,349
Financial income in life insurance
Investment interest
from investments
investments
impairments
investments
relations
Total
689,468
-
11,478,925
1,441,676
12,168,393
1,441,676
399,482
-
11,304,659
17,465,464
11,704,141
17,465,464
-
1,543,999
1,543,999
-
591,539
591,539
-
1,304,116
1,304,116
-
2,253,258
2,253,258
-
54,494
54,494
-
-
-
-
-
-
-
-
-
-
569,668
569,668
-
108,880
108,880
689,468
16,392,878
17,082,346
399,482
31,723,800
32,123,282
Financial income of company
Investment interest
from investments
nvestments
impairments
investments
relations
Total financial income of
company
1,399,627
74,637
16,772,195
1,888,480
18,171,822
1,963,117
818,209
36,304
16,013,016
19,647,269
16,831,225
19,683,573
257,576
1,634,947
1,892,523
259,733
943,891
1,203,624
-
1,304,116
1,304,116
-
2,257,149
2,257,149
10,017
66,634
76,651
12,107
69,426
81,533
116,842
-
116,842
125,668
-
125,668
-
3,599,088
3,599,088
-
2,687,859
2,687,859
1,858,699
25,265,460
27,124,159
F I N A N C I A L
R E P O R T
128
1,252,021
41,618,610
42,870,631
Detailed display of financial expenses
Own
source
in EUR, rounded
2008
2007
business
fund /
long-term
business
fund
business
fund /
long-term
business
fund
Total
Own
source
Total
Financial expenses in non-life insurance
Losses on investment disposal
5,006
-
5,006
7,147
214,093
221,240
-
2,830,464
2,830,464
-
3,286
3,286
95,834
241,778
337,612
-
-
-
Investment value impairments
Change of fair value of investments
Interests from issued bonds
962,984
-
962,984
555,175
-
555,175
Other financial expenses
117,206
227,280
344,486
140,052
99,265
239,317
Total
1,181,030
3,299,522
4,480,552
702,374
316,644
1,019,018
Financial expenses in life insurance
42,498
6,028
48,526
112,606
13,922
126,528
-
6,542,720
6,542,720
-
-
-
517,787
11,400,021
11,917,808
160,359
1,257,183
1,417,542
590,000
-
590,000
422,719
-
422,719
1,751
1,751
-
4,156
4,156
Total
1,150,285
17,950,520
19,100,805
695,684
1,275,261
1,970,945
Financial expenses of company
47,504
6,028
53,532
119,753
228,015
-
9,373,184
9,373,184
-
3,286
3,286
613,621
11,641,799
12,255,420
160,359
1,257,183
1,417,542
1,552,984
-
1,552,984
977,894
-
977,894
117,206
229,031
346,237
140,052
103,421
243,473
Total financial expenses of
company
2,331,315
21,250,042
23,581,357
1,398,058
1,591,905
347,768
2,989,963
5.21 Other Operating Income
in EUR, rounded
2008
2007
Income from comissions
141,535
86,462
Other insurance income and other services
568,289
2,563,836
Other net income
252,858
154,803
Total other operating income
962,681
F I N A N C I A L
R E P O R T
129
2,805,101
5. 22 Expenses from Policyholder Claims and Benefits Incurred
Elements of disclosed net claims incurred
in EUR, rounded
31. 12. 2008
31. 12. 2007
Non-life insurance
Claims paid - gross amount
157,883,584
108,878,183
-71,148,907
-34,040,361
-4,902,494
-5,617,388
Recourses written in claims
Net claims (paid)
81,832,184
Change in claims reserve for re- and coinsurance share
21,236,935
-14,568,795
Net claims incurred
88,500,323
in EUR, rounded
31. 12. 2008
69,220,433
16,816,688
-5,522,170
80,514,951
31. 12. 2007
Life insurance
Claims paid - gross amount
32,987,003
29,747,186
-75,972
Net claims (paid)
32,987,003
-50,719
Net claims incurred
29,671,214
739,072
32,936,284
30,410,286
190,870,588
-71,148,907
-4,902,494
138,625,369
-34,116,333
-5,617,388
114,819,187
98,891,647
Total
Gross claims (paid)
Recourses written in claims
Net claims (paid)
Change in claims reserve for re- and coinsurance share
21,186,216
-14,568,795
Net claims incurred
121,436,607
17,555,760
-5,522,170
110,925,237
High increase of gross claims is a consequence of storms which in 2008 hit the whole area of Slovenia
several times.
F I N A N C I A L
R E P O R T
130
Gross claims or benefits incurred in 2008 by insurance classes
2008
in EUR, rounded
Accident insurance
Aircraft insurance
Vessel insurance
Credit insurance
Life insurance
Total ZM d.d.
Gross claims
Amount from
coinsurance
operations
7,252,224
41,993,423
3,182
284,275
888,279
17,660,905
42,966,743
37,022,786
1,238
3,181
6,041,895
2,041,679
1,080,741
274,486
368,547
-186,304
-224,781
-145,668
75,734
-71,389
7,530
787
-
157,883,584
-544,091
31,279,686
1,707,317
Amount
ceded to
reinsurance
Amount of
recourse
claims
-2,138,522
-15,463,100
-875
-83,321
-175,266
-14,584,588
-24,792,490
-10,688,531
-371
-951
-1,782,443
38,855
-428,860
-136,209
-368,143
-70,604,815
Net claims
-1,025,300
-35,443
-69,175
-11,134
-1,278,907
-4,120
-2,166,336
-312,079
-4,902,494
5,113,702
25,318,719
2,307
200,954
452,789
2,861,474
18,238,853
24,983,959
867
2,230
4,262,863
-85,802
339,802
138,277
787
404
81,832,184
31,279,686
1,707,317
-
-
-
32,987,003
0
0
0
32,987,003
190,870,588
-544,091
-70,604,815
-4,902,494
114,819,187
F I N A N C I A L
R E P O R T
131
Gross claims or benefits incurred in 2007 by insurance classes
2007
in EUR, rounded
Accident insurance
Aircraft insurance
Vessel insurance
Credit insurance
Life insurance
Total ZM d.d.
Amount from
coinsurance
operations
Gross claims
6,856,524
32,333,927
187,694
91,430
404,004
7,073,917
15,342,009
37,993,369
122
3,932
5,190,429
2,481,054
380,693
205,887
270
332,922
108,878,183
-1,025
-98,311
-88,421
3,396
45,079
-12,362
4,831
555
-146,258
28,899,312
847,874
Amount
ceded to
reinsurance
-2,056,340
-9,396,538
-125,360
-27,429
-94,441
-3,855,112
-5,243,577
-10,875,080
-36
-1,180
-1,544,863
-177,853
-101,063
-62,228
-81
-332,922
-33,894,103
-
Amount of
recourse
claims
Net claims
-913,956
-16,866
-4,030
-2,744,093
-1,894,628
-43,816
-5,617,388
-75,972
-
4,799,159
21,925,122
62,334
64,001
221,142
3,205,335
10,139,481
24,361,834
86
2,752
3,650,397
408,573
235,814
143,659
744
0
69,220,434
-
28,823,340
847,874
29,747,186
0
-75,972
0
29,671,214
138,625,369
-146,258
-33,970,075
-5,617,388
98,891,648
Under data for gross claims written, the Company discloses (in insurance class third party liability insurance
for road vehicles) also a lump sum for claims in the amount of EUR 4,257,037 (2007: EUR 4,149,380) paid to
the Health insurance Institute of Slovenia.
5.23 Expenses from Changes of Insurance Contracts Liabilities
In 2008, in the Profit and Loss Account the Company recognised expenses arising from the change of
mathematical provisions and other technical provisions in the amount of EUR 13,390,170 (2007: EUR
42,821,221), of which EUR 1,263,358 (2007: EUR 285,910) was for non-life insurance contracts and EUR
12,126,812 (2007: EUR 42,535,311) for life insurance contracts.
On the basis of a ratio between premiums, claims and costs, in 2008 the Company increased disclosed
unexpired risk provisions by EUR 651,317 (in 2007 it disclosed reduction of unexpired risk provisions by EUR
147,152).
F I N A N C I A L
R E P O R T
132
5.24 Operating Costs
Operating costs by natural classes
in EUR, rounded
31. 12. 2008
31. 12. 2007
Non-life insurance
Acquisition costs (commission to agents and brokers)
Depreciation of assets required for insurance operations
Labour costs
- Wages and salaries
- Social and pension insurance costs
- Other labour costs
- Provisions for severance benefits and long-service awards
Other operating expenses
Total operating expenses by natural classes
11,448,111
1,723,369
22,194,702
22,896,841
16,824,346
17,102,783
2,622,543
2,671,853
2,492,361
2,823,240
255,453
298,965
11,228,344
10,666,418
46,739,558
31. 12. 2008
in EUR, rounded
9,385,455
1,868,402
44,672,083
31. 12. 2007
Life insurance
Acquisition costs (commission to agents and brokers)
Labour costs
3,001,593
5,338,807
107,892
140,012
7,387,284
6,994,173
5,572,707
5,207,945
868,661
813,602
825,542
870,645
120,373
101,981
3,281,493
2,045,445
13,778,260
14,518,438
Total
Acquisition costs
Labour costs
14,449,704
14,724,262
1,976,293
1,863,381
29,581,985
29,490,068
22,397,053
21,440,440
3,491,204
3,485,455
3,317,902
4,163,227
375,826
400,946
14,509,837
13,112,809
60,517,819
59,190,521
The Company’s operating costs in 2008 amounted to EUR 60,517,819 and in comparison to the same period
in the previous year increased by 2.2 per cent.
Insurance acquisition costs represent commission for conclusion of insurances, which was paid to external
contract agents and brokers.
The Company discloses cost of material, advertising cost, promotion cost, cost of entertainment, donations
and sponsorship contributions as well as other operating costs under other operating costs, including cost of
annual audit amounting to EUR 87,527 (2007: EUR 53,117).
F I N A N C I A L
R E P O R T
133
The Company uses leased premises for the provision of insurance services. Most of the lease contracts are
signed for an indefinite period of time. All lease contracts are revocable. The Company discloses expenses
from lease contracts directly in the Income Statement on a straight-line basis during the whole lease period.
Rental costs recognised in the Company’s 2008 Income Statement amount to EUR 958,476.83 (2007: EUR
851,043 776.640).
5.25 Other Operating Expenses
31. 12.
2008
in EUR, rounded
31. 12.
2007
Other technical expenses
2,404,872
Other expenses
3,076,995
Total
5,481,867
2,279,289
5,308,042
7,587,331
Other expenses from insurance business comprise preventive activity expenses, fire tax costs, claims paid
for damages caused by drivers of unknown and uninsured vehicles and fee for covering expenses of the
Insurance Supervision Agency. Other expenses include impairment of assets, receivable write-offs as well as
pecuniary penalties and compensations.
5.26 Income Tax
Corporate income tax liability for 2008 amounts to EUR 3,681,850 (2007: EUR 2,114,950). Tax liability was
calculated at a tax rate of 22 per cent (2007: 23 per cent). The tax rate will continue to decrease by one
percentage point per year by 2010 when it will achieve 20 per cent.
in EUR, rounded
31. 12. 2008
3,681,850
-457,895
53,672
-37,583
3,240,044
Income from deferred tax arising from transition to IFRS
Expenditure for deferred tax from provisions for employees
Income from deferred tax from provisions for employees
Income tax disclosed in Profit & Loss Account
31. 12. 2007
2,114,950
11,782
30,050
2,156,782
-1,193,054
Deferred income tax disclosed in capital
- for increase of fair value of financial assets available for sale
F I N A N C I A L
R E P O R T
134
-1,193,054
-5,999,856
-5,999,856
Income tax in accordance with tax regulations
in EUR, rounded
2008
Profit
6,031,827
Statutory tax rate in %
2007
6,557,649
22%
Tax calculated at statutory rate
Reconcilliation of profit in accordance with tax regulations
Income adjustment to income recognised for tax purposes (decrease)
Expenditure adjustment to expenditure recognised for tax purposes (decrease)
Expenditure adjustment to expenditure recognised for tax purposes (increase)
Change of tax base due to transition to new accounting method, with changes of
accounting policies, corrections of errors and revaluations
Increase of tax base – exclusion of expenses relating to dividends
Tax reliefs
Corporate income tax base
Deferred taxes
23%
1,327,002
1,508,259
-2,690,433
12,637,792
-2,878,743
5,984,738
-13,632
-9,271
1,840,061
566,269
98,129
-1,168,062
16,735,682
65,986
-1,091,192
9,195,436
3,681,850
2,114,950
-441,806
41,832
53.7%
32.9%
Effective tax rate
In 2008, monthly income tax prepayments amount to EUR 303,371 (2007: EUR 176,245).
High increase of the effective tax rate is a consequence of financial assets impairment, which is tax-wise an
entirely non-recognisable expense.
5.27 Net earnings per share
v centih
31. 12. 2008
2,791,783
6,812,050
Net earnings per share
31. 12. 2007
0.41
4,155,332
6,812,050
0.61
In the calculation of net earnings per share the Company took into consideration for both years all 6,812,050
shares issued. All shares issued by the Company are ordinary registered shares, therefore adjusted net
earnings per share are equal to underlying net earnings per share.
5.28 Capital Flow and Distributable Profit
The purpose of capital-flow statement is to show changes of the Company’s capital in the reporting period. The
Company compiles capital-flow statement by including in it the balances and changes of all those components
of capital, which are included in the capital item in the Company’s balance sheet.
The Company’s total capital decreased by 20 per cent with regard to the business year. Reduction of total
capital was affected primarily by the fall in prices of fair values of financial assets, and as a consequence fair
value reserve decreased by 79 per cent in 2008.
In accordance with the Companies Act, the Company additionally calculates distributable profit/accumulated
loss. Allocation of distributable profit is a matter of the Company’s Generač Assembly.
F I N A N C I A L
R E P O R T
135
Formation of distributable profit for 2008
in EUR, rounded
A
1
2008
2,791,783
Net profit/loss for the period
2.791.783
net profit for the period
B
Net profit/loss brought forward
4,073,152
E
Increase of reserves from profit pursuant to the Management Board resolution
1,709,075
1
increase of statutory reserves
799.533
4
increase of risk equalisation reserves (equalisation reserves)
909.542
F
5,155,860
(A+B-E) Profit
Formation of distributable profit for 2007
in EUR, rounded
A
1
2007
4,155,332
Net profit/loss for the period
4,155,332
net profit for the period
B
Net profit/loss brought forward
E
Increase of reserves from profit pursuant to the Management Board resolution
1,966,658
2 Increase of other reserve from profit
4 increase of reserves for risk equalisation (equalisation reserves)
F
2,118,253
2,200,433
233,775
4,073,152
(A+B-E) Profit
5.29 Potential Receivables and Liabilities
Potential receivables of the Company are recourse receivables which do not yet meet conditions for their
recognition in the Company’s assets.
31. 12. 2008
in EUR, rounded
31. 12. 2007
17,278,878
Unexercised recourse receivables
15,918,314
Potential liabilities of the Company arise from labour disputes, other lawsuits and given guarantees for public
tenders.
Potential liabilities of the Company related to labour disputes on 31.12.2008 amount to EUR 123,501 (2007:
EUR 380,159). Potential liabilities arising from guarantees for public tenders on 31.12.2008 amount to EUR
717,293 (2007: EUR 1,089,754).
5.30 Related Party Transactions
In 2008 there were no transactions between the insurance company and associated persons which would
be carried out under unusual market conditions and would consequently affect the Company’s financial
statements. Transactions between the Company and the two largest owners, holding 95.75 per cent of
shares, are disclosed here. Transactions and profits of the management are also disclosed. On 31.12.2008
the Company does not control affiliated or associated companies (see clarification 2.1).
F I N A N C I A L
R E P O R T
136
Equity stakes of related parties
The two largest shareholders in the Company are Nova KBM d.d. with a 49.961 per cent share and Sava
Reinsurance Company with a 45.786 per cent share.
At the end of 2008, members of the Management Board held 8,100 shares or 0.12 per cent of equity. One
employee with individual employment contract is also among owners of equity, namely of 450 shares. The
Supervisory Board members hold no stakes in the Company
Key management transactions
The Company’s key management is composed of members of the Company’s Supervisory Board, members
of the Company’s Management Board and employees with individual contracts of employment.
In 2008 the Company’s Supervisory Board had five members until February and after appointment of a member
from the Sava Reinsurance Company it acted in full capacity. The total remunerations of the Supervisory Board
members in 2008 comprise attendance fees and a fee from distributable profit for the work in the Supervisory
Board in 2007, paid out on the basis of a resolution adopted by the General Meeting.
In 2008 the Company’s Management Board had 5 members. On the basis of a resolution of the Supervisory
Board, the Company’s Management Board received remuneration for its work in 2007.
The Company discloses the emoluments of individual groups of persons (excluding fees paid out to Supervisory
Board members) under labour costs:
Supervisory
Board
members
in EUR, rounded
Gross salary
Bonuses
Other gross emoluments
Gratuities
Attendance fees
Travel to work and food expenses remuneration
Additional pension insurance premium
Management
Board
members
59,500
14,450
-
Total
Staff employed
on the basis of
individual contracts
734,702
25,486
48,830
44,300
6,354
3,035
73,950
2,100,212
101,955
218,459
39,128
18,057
862,707
2,477,811
Total
2,834,914
127,441
267,289
103,800
14,450
45,482
21,092
3,414,468
* Employees for which the tariff part of the collective agreement is not applicable
** Holiday allowances, severance benefits paid upon retirement, long-service awards and potential other remunerations
The Company also discloses under receivables the loans at a 4.5 per cent interest rate granted to individuals
employed on the basis of individual contracts. Members of the Management Board and the Supervisory Board
received no loans from the Company.
in EUR, rounded
Staff employed on the basis of individual contracts
Loans as of
31. 12. 2008
26,843
Repayments
in 2008
Insurance
statement
4,149
leasing
- mortgage
- yes (1)
Interest rate
4.5 %
* Employees for which the tariff part of the collective agreement is not applicable
The Company pursues members of the Supervisory Board also for repayment of remunerations paid out in
2008 from the distributable profit of 2007. The reason is explained more in detail in item 5.12. Receivables
amount to EUR 46,113. Liabilities to key management in the balance sheet refer solely to calculated salaries
for December 2008.
F I N A N C I A L
R E P O R T
137
Transactions with Moja naložba pokojninska družba d.d.
Zavarovalnica Maribor is a 20 per cent owner of pension insurance company Moja naložba.
The insurance company concluded an agreement on inclusion in the retirement plan with the pension company
and thus included all its employees in the voluntary supplementary pension insurance. In 2008 the Company
paid in EUR 50.58 (EUR 47.85 in 2007) for each employee. Total amount of payments for 2008 amounts to
EUR 461,256 (EUR 450,322 for 2007).
Transactions with Sava Reinsurance Company
Business relationships between the Company and Sava Reinsurance Company are mainly connected with
reinsurance operations and are reflected in expenses, revenues, assets and liabilities. On 31.12.2008 the
Company also discloses a liability arising from the sale of the Company Velebit usluge d.o.o. to the reinsurance
company and the received advance payment according to sales agreement. The Company’s investment
portfolio also includes shares of the reinsurance company, whereas employees of Zavarovalnica Maribor are
insured against accidents.
Type and scope of transactions with Sava Reinsurance Company
in EUR, rounded
2008
Income for reinsurance company’s shares in loss accounted for
Income from reinsurance company’s share in provisions for claims outstanding
Income from reinsurance company’s share in other technical provisions
Income from gross premiums
Income from performed services
Expenses for reinsurance company’s share in gross premium
Expenses decrease for reinsurance commission from gross premium
Expenses for reinsurance company’s share in unearned premium
Expenses for investments (impairment of equity securities)
Total impact in the profit/loss account
Receivables from reinsurance accounts/settlement of accounts
Receivables to reinsurance company arising from provisions for claims outstanding
Equity securities in ZM portfolio
Liability from coinsurance accounts/settlement of accounts
Liability to reinsurance company from unearned premium
Liability from received advances relating to sales agreement
Total in the balance sheet
2007
70,158,563
14,344,098
250,676
3,062
6,284
-57,458,435
13,736,526
-736,927
-6,503,981
33,607,115
5,449,614
0
2,786
9,958
-57,455,745
13,748,940
1,772,276
0
33,799,867
-2,865,057
24,717,829
51,740,273
4,756,708
-13,334,753
-15,832,141
-6,000,000
11,504,879
37,407,295
3,684
-11,781,601
-16,569,068
0
46,047,916
20,565,189
Transactions with Nova KBM d.d.
Nova KBM is an important partner in investment of long-term business fund and the assets for technical
provisions in different forms, including investment in bank shares from public sales and issued bank bonds.
The Company has two current accounts open at the bank. It is also leasing premises in the joint computer
centre and pays rent for them, and in addition it is also leasing the bank’s point-of-sale terminals.
The bank carries out insurance brokerage transactions for some insurance products and the Company pays
commission for these services. The Bank’s property and some loan operations are insured with Zavarovalnica
Maribor.
There are no mutual loan relationships between Zavarovalnica Maribor and Nova KBM.
F I N A N C I A L
R E P O R T
138
Type and scope of transactions with Nova KBM d.d.
in EUR, rounded
2008
Income from gross premium from insurance taken out
Investment income
Payment transaction fees and commissions
Rents and operating costs
Commission for insurance brokerage/agencies
Indemnity expenses
Investment expenses (equity securities impairment)
961,141
1,798,404
-298,558
-282,385
-31,456
-577,471
-2,604,729
Total impact in the profit/loss account
-1,035,053
Fixed-yield debt securities traded on the organised market
Equity securities in ZM portfolio
Bank deposits
Cash in sight deposit account
Receivables from insurance operations
Liabilities from commissions and rents
Total in the balance sheet
15,153,602
1,566,701
26,054,466
199,870
4,095
-14,557
42,964,177
2007
1,119,958
1,348,782
-411,747
-261,169
-89,906
-1,150,871
0
555,046
13,146,540
3,356,153
20,110,388
156,890
38,138
-62,471
36,745,638
5.31 Vents After the Balance Sheet Date
Among the events after the balance sheet date, the one with the biggest financial repercussions is the decision
of the Assembly on cancellation of allocation of distributable profit for 2007. Withheld profit from the previous
years and available solvency margin in calculation of capital adequacy increased by approximately 2 million
EUR.
In the first quarter of the business year 2009 the sale of participating interest in the company Velebit usluge
d.o.o. (see explanatory note no. 10) was made. Croatian Financial Services Supervisory Agency (HANFA)
issued authorisation for transfer of qualifying participation on 12 February 2009. After meeting this deferred
condition, the Company received the remaining part of the purchase price agreed in the sales agreement.
Profit made from the concluded transaction of sale of participating interest amounts to just over a million EUR.
Insurance Supervision Agency began inspection of the Company’s business operations in November
2009. The inspection has not been concluded and minutes regarding inspection have not been published
yet. Nonetheless, the Company took into account the findings and positions of the Insurance Supervisions
Agency with regard to calculation of liabilities arising from insurance transactions (mathematical provision
for investment insurances) already in annual financial statements for 2008 and these provisions increased
accordingly. For more detailed clarification please see chapter 2.3 – Correction of Errors.
On 26.2.2009 and 2.3.2009 the Company consequently paid the difference between the old and the new
calculated mathematical provision in the amount of EUR 6.6 million into mutual funds and thus equalised
investments and liabilities arising from insurance operations.
F I N A N C I A L
R E P O R T
139
In the first months of 2009 securities quotations continued to fall, however they later stabilized and began
a slight upward trend. Compared to situation on 31.12.2008, financial investments in the Company’s portfolio
on 31.5.2009 show cumulative growth as follows:
In EUR
Amount
Financial income
Fair value change
4,140,584
Financial expenses
Impairments
Fair value change
739,777
2,039,002
Fair value reserve
Gross increase of capital including deferred taxes
1,050,030
F I N A N C I A L
R E P O R T
140
•
•
•
•
•
•
Income statement
Ballance sheet
Ballance sheet OF LONG-TERM BUSINESS FUND 5063400020 - traditional insurance
Income statement OF LONG-TERM BUSINESS FUND 5063400020 - traditional insurance
Ballance sheet OF LONG-TERM BUSINESS FUND 5063400022 - unit-linked insurance
Income statement OF LONG-TERM BUSINESS FUND 5063400022 - unit-linked insurance
F I N A N C I A L
R E P O R T
141
Income statement
v evrih brez centov
od 1.1. do 31.12.2008
A.
IZKAZ IZIDA IZ PREMOŽENJSKIH ZAVAROVANJ
I.
ČISTI PRIHODKI OD ZAVAROVALNIH PREMIJ
1.
2.
3.
4.
5.
6.
Obračunane kosmate zavarovalne premije
Obračunana premija sprejetega sozavarovanja (+)
Obračunana premija oddanega sozavarovanja (+)
Obračunane pozavarovalne premije (-)
Sprememba kosmatih prenosnih premij (+/-)
Sprememba prenosnih premij za so-/pozavarovalni del (+/-)
II.
RAZPOREJENI DONOS NALOŽB, PRENESEN IZ IZKAZA ČISTEGA IZIDA
ZAVAROVALNICE
III.
DRUGI ČISTI ZAVAROVALNI PRIHODKI
IV.
ČISTI ODHODKI ZA ŠKODE
1.
2.
3.
4.
5.
6.
Obračunani kosmati zneski škod
Prihodki od uveljavljenih kosmatih regresnih terjatev (-)
Obračunani deleži sozavarovateljev (+/-)
Obračunani deleži pozavarovateljev (-)
Sprememba kosmatih škodnih rezervacij (+/-)
Sprememba škodnih rezervacij za so- in pozavarovalni del (+/-)
od 1.1. do 31.12.2007
Indeks rasti
136.377.164
120.429.564
113
185.867.592
177.566
-1.239.971
-45.327.115
-2.473.478
-627.431
170.673.124
253.818
-1.085.240
-44.544.639
-6.564.070
1.696.571
109
70
114
102
38
-37
3.005.930
7.143.271
42
107
497.283
463.938
88.500.323
80.514.951
110
157.883.584
-4.902.494
-544.090
-70.604.817
21.236.935
-14.568.795
108.878.183
-5.617.388
-146.258
-33.894.103
16.816.688
-5.522.170
145
87
372
208
126
264
V.
SPREMEMBA DRUGIH ČISTIH ZAV.-TEH. REZERVACIJ (+/-)
651.317
-147.152
-443
VI.
ČISTI ODHODKI ZA BONUSE IN POPUSTE
612.041
433.062
141
VII.
ČISTI OBRATOVALNI STROŠKI
46.735.410
44.667.797
105
11.448.111
9.385.455
122
35.291.447
1.868.402
22.194.702
16.824.346
2.622.543
2.747.813
692.101
10.536.243
-4.148
35.286.627
1.723.369
22.597.876
16.435.644
2.671.853
3.490.379
388.943
10.576.439
-4.286
100
108
98
102
98
79
178
100
97
2.329.850
2.195.431
106
190.759
540.083
1.599.008
141.448
678.882
1.375.101
135
80
116
1.051.436
372.685
282
65.975.643
63.721.088
104
65.976.980
63.674.781
104
-51.300
49.963
-64.186
110.494
80
45
15.778.230
29.870.025
53
1.543.999
1.543.999
12.738.061
12.168.776
12.168.776
569.285
591.539
591.539
11.813.022
11.704.358
11.704.358
108.664
106.992
106.992
1.672
1.672
261
261
108
104
104
524
1.
2.
3.
4.
VIII.
Stroški pridobivanja zavarovanj
Sprememba v razmejenih stroških pridobivanja zavarovanj (+/-)
Drugi obratovalni stroški
3.1.
Amortizacija vrednosti sredstev, potrebnih za obratovanje
3.2.
Stroški dela
3.2.1. plače zaposlenih
3.2.2. stroški socialnega in pokojninskega zavarovanja
3.2.3. drugi stroški dela
3.3.
Str. storitev fizičnih oseb, ki ne opravljajo dejavnosti
3.4.
Ostali obratovalni stroški
Prihodki od pozavarovalnih provizij in deležev v ZT izidu iz pozavar.pogodb(-)
DRUGI ČISTI ZAVAROVALNI ODHODKI
1.
2.
3.
Odhodki za preventivno dejavnost
Prispev. za kritje škod po nezavar.in neznanih vozilih
Ostali čisti zavarovalni odhodki
IX
IZID IZ PREMOŽENJSKIH ZAVAROVANJ
+ II + III - IV +/- V - VI - VII - VIII )
B.
IZKAZ IZIDA IZ ŽIVLJENJSKIH ZAVAROVANJ
I.
ČISTI PRIHODKI OD ZAVAROVALNIH PREMIJ
1.
2.
3.
4.
5.
6.
II.
(I
Obračunane kosmate zavarovalne premije
Obračunana premija sprejetega sozavarovanja (+)
Obračunana premija oddanega sozavarovanja (-)
Obračunane pozavarovalne premije
Sprememba kosmatih prenosnih premij (+/-)
Sprememba prenosnih premij za pozavarovalni del (+/-)
PRIHODKI NALOŽB
1.
2.
3.
4.
Prihodki iz deležev v družbah
1.3.
Prihodki od deležev v drugih družbah
Prihodki drugih naložb
2.2.
Prihodki od obresti
Prihodki od drugih družb
2.3.
Drugi prihodki naložb
2.3.1. Prevrednotovalni finančni prihodki
2.3.2. Drugi finančni prihodki
Prihodki zaradi popravkov vrednosti naložb
Dobički pri odtujitvah naložb
III.
ČISTI NEIZTRŽENI DOBIČKI NALOŽB ŽIIVLJ.ZAVAR., KI PREVZEMAJO NT
IV.
DRUGI ČISTI PRIHODKI OD ZAVAROVANJA
V.
ČISTI ODHODKI ZA ŠKODE
1.
2.
3.
4.
5.
VI.
Obračunani kosmati zneski škod
Prihodki od uveljavljenih kosmatih regresnih terjatev (-)
Obračunani deleži pozavarovateljev (-)
Sprememba kosmatih škodnih rezervacij (+/-)
Sprememba škodnih rezervacij za pozavarovalni del (+/-)
SPREMEMBA OSTALIH ČISTIH ZAVAROVALNO-TEHNIČNIH REZERVACIJ (+/-)
1.
Sprememba matematičnih rezervacij (+/-)
F I N A N C I A L
R E P O R T
142
569.285
569.285
54.494
1.441.676
34.055
34.055
17.465.464
8
1.304.116
2.253.258
58
153.146
128.215
119
32.936.284
30.410.286
108
32.987.003
29.747.186
111
-50.719
-75.972
739.072
-7
12.126.812
42.535.311
29
12.126.812
42.535.311
29
2.
1.1.
Sprememba kosmatih matematičnih rezervacij (+/-)
1.2.
Sprememba pozavarovalnega deleža (+/-)
Sprememba drugih čistih zavarovalno-tehničnih rezervacij (+/-)
VII.
ČISTI ODHODKI ZA BONUSE IN POPUSTE
VIII.
ČISTI OBRATOVALNI STROŠKI
1.
2.
3.
4.
IX.
Stroški pridobivanja zavarovanj
Sprememba v razmejenih stroških pridobivanja zavarovanj (+/-)
Drugi obratovalni stroški
3.1.
Amortizacija vrednosti sredstev, potrebnih za obratovanje
3.2.
Stroški dela
3.2.1. plače zaposlenih
3.2.2. stroški socialnega in pokojninskega zavarovanja
3.2.3. drugi stroški dela
3.3.
Bruto str. storitev fizičnih oseb, ki ne opravljajo dejavnosti
3.4.
Ostali obratovalni stroški
Prihodki od pozavarovalnih provizij in deležev v ZT izidu iz pozavar.pogodb(-)
ODHODKI OD NALOŽB
1.
2.
3.
4.
Amortizacija naložb sredstev, ki niso potrebna za obratovanje
Odhodki za upravljanje sredstev, obresti in drugi fin.odhodki
Prevrednetovalni finančni odhodki
Izgube pri odtujitvah naložb
X.
ČISTE NEIZTRŽENE IZGUBE NALOŽB ŽIIVLJ.ZAVAR., KI PREVZEMAJO NT
XI.
DRUGI ČISTI ZAVAROVALNI ODHODKI
1.
2.
Odhodki za preventivno dejavnost
Ostali drugi čisti zavarovalni odhodki
XII.
RAZPOREJENI DONOS NALOŽB, PRENESEN V IZKAZ IZIDA IZ REDNEGA DELOV.
XIII.
IZID IZ ŽIVLJENJSKIH ZAVAROVANJ
(I + II + III - IV - V +/- VI - VII - VIII - IX - X - XI - XII)
D.
IZRAČUN ČISTEGA IZIDA ZAVAROVALNICE
12.126.812
42.535.311
29
13.773.837
14.518.438
95
6.817.297
-3.815.704
10.776.668
107.892
7.387.284
5.572.707
868.661
945.915
72.651
3.208.841
-4.423
5.338.807
128
9.179.630
140.012
6.892.192
5.004.796
813.602
1.073.794
40.828
2.106.598
117
77
107
111
107
88
178
152
8.310.681
926.247
897
1.342
270.409
7.990.404
48.526
1.230
257.825
540.664
126.528
109
105
1.478
38
10.790.126
1.044.697
1.033
75.022
83.858
89
6.000
69.022
8.200
75.658
73
91
635.229
-511.396
-124
4.563.143
6.965.144
66
I.
IZID IZ PREMOŽENJSKIH ZAVAROVANJ (A IX)
1.051.436
372.685
282
II.
IZID IZ ŽIVLJENJSKIH ZAVAROVANJ (B XIII)
4.563.143
6.965.144
66
III.
IZID IZ ZDRAVSTVENIH ZAVAROVANJ (C XIII)
IV.
PRIHODKI NALOŽB
10.041.813
10.747.348
93
348.524
612.085
57
348.524
9.149.691
116.842
116.842
8.856.792
57
117
93
93
116
116
253
176.057
176.057
22.157
521.441
612.085
7.835.623
125.668
125.668
7.640.255
8.427
7.631.828
69.700
3.891
3.891
65.809
65.809
81.533
2.218.107
635.229
-511.396
-124
4.479.532
3.618.053
124
44.238
835.480
3.594.809
5.006
49.026
525.222
2.822.567
221.239
90
159
127
2
3.005.930
7.143.271
42
78.655
2.073.387
4
78.655
2.073.383
4
4
2.667.512
2.678.227
100
2.664.212
3.300
1.704.296
973.932
156
0
225.026
135.275
166
221.080
3.947
133.408
1.867
166
211
410.501
30.778
1.334
410.262
239
30.460
318
1.347
75
6.031.827
6.312.114
96
833.048
5.198.779
830.745
5.481.370
100
95
1.
2.
3.
4.
Prihodki iz deležev v družbah
1.1.
Prihodki od deležev v družbah v skupini
1.2.
Prihodki od deležev v pridruženih družbah
1.3.
Prihodki od deležev v drugih družbah
Prihodki drugih naložb
2.1.
Prihodki od zemljišč in zgradb
2.2.
Prihodki od obresti
Prihodki od družb v skupini
2.3.
Drugi prihodki naložb
2.3.1. Prevrednotovalni finančni prihodki
2.3.2. Drugi finančni prihodki
Prihodki zaradi popravkov vrednosti naložb
Dobički pri odtujitvah naložb
8.856.792
176.057
V.
RAZPOREJEN DONOS NALOŽB, PRENESEN IZ IZKAZA ŽIVLJENJSKIH ZAV. (B XII)
VI.
RAZPOREJEN DONOS NALOŽB, PRENESEN IZ IZKAZA ZDRAVSTVENIH ZAV. (C XII)
VII.
ODHODKI NALOŽB
1.
2.
3.
4.
Amortizacija naložb sredstev, ki niso potrebna za obratovanje
Odhodki za upravljanje sredstev, obresti in drugi fin.odhodki
Prevrednetovalni finančni odhodki
Izgube pri odtujitvah naložb
VIII.
RAZPOREJEN DONOS NALOŽB, PRENESEN V IZKAZ IZIDA IZ PREM.ZAVAR. (A.II)
IX.
DRUGI PRIHODKI IZ ZAVAROVANJ
1.
2.
X.
DRUGI ODHODKI IZ ZAVAROVANJ
1.
2.
XI.
Drugi prihodki iz premoženjskih zavarovanj
Drugi prihodki iz življenjskih zavarovanj
DRUGI ODHODKI
1.
2.
XIII.
Drugi odhodki iz premoženjskih zavarovanj
Drugi odhodki iz življenjskih zavarovanj
DRUGI PRIHODKI
1.
2.
XII.
Drugi prihodki iz premoženjskih zavarovanj
Drugi prihodki iz življenjskih zavarovanj
Drugi odhodki iz premoženjskih zavarovanj
Drugi odhodki iz življenjskih zavarovanj
POSLOVNI IZID OBRAČUNSKEGA OBDOBJA PRED OBDAVČITVIJO (I+II+III+IV+V+VIVII-VIII+IX-X+XI-XII)
1.
2.
Poslovni izid obračunskega obdobja iz premoženjskih zavarovanj
Poslovni izid obračunskega obdobja iz življenjskih zavarovanj
F I N A N C I A L
R E P O R T
143
268
268
27
24
XIII.
DAVEK IZ DOBIČKA
XIV.
ODLOŽENI DAVKI
XV.
ČISTI POSLOVNI IZID OBRAČUN. OBDOBJA
(I+II+III+IV+V+VI-VII-VIII+IX-X+XI-XII-XIII+/-XIV)
in EUR
TOTAL ASSETS
A.
B.
INTANGIBLE FIXED ASSETS
1
Intangible fixed assets
2.
Good will
3.
Advances for fixed assets
4.
Non-current deferred acquisition costs
5
Other non-current deferred costs and accrued revenues
INVESTMENTS IN LAND AND BUILDINGS AND FINANCIAL
INVESTMENTS
I. LAND AND BUILDINGS
a) For direct insurance operations
1
Land for direct insurance operations
2
Buildings for direct insurance operations
3
Other land and buildings for direct insurance operations
in property not intended for direct insurance
b) Investment
operations
1
Land
2
Buildings
NON-LIFE
INSURANCE
LIFE
INSURANCE
As at 31.12.2008
As at 31.12.2007
Equities and participating interests in subsidiaries
Debt securities and loans granted to subsidiaries
3.
Equities and participating interests in associated
undertakings
4.
Debt securities and loans granted to associated
undertakings
5.
Other financial investments in subsidiaries and associated
undertakings
III. OTHER FINANCIAL INVESTMENTS
1.
2
Non-current financial investments
174
-41.832
-1.056
2.791.783
4.155.332
67
LIFE
INSURANCE
LIFE
INSURANCE
As at
31.12.2008
As at
31.12.2007
259.102.296
116
338.649.071
349.055.649
511.309
498.020
103
6.066.537
2.222.428
449.764
449.897
100
5.280
9.240
57
6.066.537
2.222.428
Growth
index
TOTAL
TOTAL
As at
31.12.2008
As at
31.12.2007
97 634.940.266 603.814.160
273
Growth
index
105
6.577.846
2.720.448
242
449.764
449.897
100
5.280
9.240
57
6.066.537
2.222.428
273
56.265
38.883
145
92 500.360.294 501.751.952
100
273
56.265
38.883
145
216.592.359
191.989.755
113
283.767.935
309.762.197
9.027.015
9.585.654
94
1.602.490
1.695.818
94
10.629.506
11.281.473
8.305.449
8.781.621
95
1.549.465
1.641.451
94
9.854.914
10.423.072
95
486.224
486.224
100
55.091
55.091
100
541.315
541.315
100
7.819.225
8.295.396
94
1.494.374
1.586.360
94
9.313.599
9.881.756
94
721.566
804.034
90
53.025
54.367
98
774.591
858.401
90
2.379
2.379
100
15.305
15.305
100
17.684
17.684
100
801.655
90
37.720
39.062
97
756.908
840.717
90
719.187
2.
2.114.950
441.806
299.404.493
IN SUBSIDIARIES AND ASSOCIATED
II. INVESTMENTS
UNDERTAKINGS
1.
Growth
index
3.681.850
4.753.151
4.609.396
9.362.547
4.753.151
4.609.396
9.362.547
94
139.040.064
123.039.349
113
282.165.445
303.456.982
93 421.205.509 426.496.332
99
130.734.389
114.944.346
114
271.492.015
297.892.534
91 402.226.404 412.836.880
97
3.910.684
3.141.016
125
12.658.330
31.479.084
107.684.655
92.212.957
117
232.013.828
240.633.260
6.537.769
6.792.502
1.1.
Equities and other variable-yield securities,
investment fund coupons
1.2.
Debt and other fixed-yield securities
1.3.
Shares in investment funds
605.568
621.885
97
7.143.337
7.414.387
96
1.4.
Mortgage loans granted
463.558
690.431
67
463.558
690.431
67
1.5.
Other loans granted
634.513
662.227
96
634.513
662.227
96
1.6.
Deposits with banks
16.429.436
16.370.319
100
36.709.438
35.356.963
104
1.7.
Other financial investments
Current financial investments
2.1.
Equities and participating interests acquired
for sale
2.2.
Securities available for sale or with remaining
maturity of up to 1 year
2.3.
Short-term loans granted
2.4.
Short-term deposits with banks
2.5.
Other current financial investments
20.280.002
40
34.620.100
48
96 339.698.482 332.846.218
102
96
18.986.644
107
16.569.013
1.005.976
1.245.511
81
2.086
1.043
200
1.008.062
1.246.554
81
8.305.675
8.095.003
103
10.673.430
5.564.449
192
18.979.105
13.659.452
139
78.282
146.979
53
10.673.430
5.564.449
192
18.900.823
13.512.473
140
78.282
146.979
53
8.227.392
7.948.025
104
68.525.279
54.611.601
125
68.525.279
54.611.601
125
16.367.283
17.005.871
96
16.367.283
17.005.871
96
16.367.283
17.005.871
96
16.367.283
17.005.871
96
OF REINSURANCE UNDERTAKINGS (DEPOSITS)
IV. INVESTMENTS
WITH CEDING UNDERTAKINGS FROM REINSURANCE
V. ASSETS ARISING FROM FINANCIAL CONTRACTS
PROVISIONS CEDED TO REINSURERS AND
VI. TECHNICAL
COINSURERS
a) from unearned premiums
-
amount ceded to reinsurance
-
amount ceded to coinsurance
b) from mathematical provisions
-
-
c) from provisions for claims outstanding
52.080.702
37.605.730
138
52.080.702
37.605.730
138
-
51.812.155
37.499.957
138
51.812.155
37.499.957
138
-
268.547
105.773
254
268.547
105.773
254
d) from provisions for bonuses and rebates
-
-
77.294
77.294
77.294
77.294
e) from other technical provisions
-
-
C.
INVESTMENTS FOR THE BENEFIT OF LIFE-ASSURANCE
POLICYHOLDERS WHO BEAR THE INVESTMENT RISK
D.
RECEIVABLES
I. RECEIVABLES FROM DIRECT INSURANCE OPERATIONS
41.911.354
34.689.902
121
41.911.354
34.689.902
121
68.899.510
58.914.519
117
1.863.187
1.999.666
93
67.649.398
56.570.399
120
39.002.816
40.100.505
97
1.267.882
1.260.464
101
40.270.698
41.360.969
97
F I N A N C I A L
R E P O R T
144
1
receivables from policyholders
-
from others
2.
receivables from insurance brokers
3.
Other receivables from direct insurance operations
-
from others
from others
FROM COINSURANCE and REINSURANCE
II. RECEIVABLES
OPERATIONS
Receivables from premium on coinsurance assumed
-
from others
38.606.859
39.775.651
97
1.267.846
1.260.429
101
39.874.706
41.036.079
38.606.859
39.775.651
97
1.267.846
1.260.429
101
39.874.706
41.036.079
97
97
395.738
323.811
122
395.738
323.811
122
395.738
323.811
122
395.738
323.811
122
218
1.043
21
36
36
100
254
1.078
24
218
1.043
21
36
36
100
254
1.078
24
25.269.236
11.594.066
218
25.269.236
11.594.066
218
242.004
27.816
870
242.004
27.816
870
242.004
27.816
870
242.004
27.816
870
Receivables from premium on reinsurance assumed
3.
from others
Receivables from coinsurers' shares in claims
4.
Other current receivables
4.
Non-current receivables
-
from others
from others
5.
Receivables from corporate income tax
6.
Deferred tax receivables
-
F.
from others
3.
-
I.
from others
Current receivables from financing
-
IV.
24.579.667
11.504.879
214
24.579.667
11.504.879
214
24.579.667
11.504.879
214
61.371
61.371
61.371
4.627.458
7.219.948
64
595.305
739.201
81
2.109.464
3.615.364
58
754.840
833.632
91
13.271
24.126
55
768.111
857.758
90
754.840
833.632
91
13.271
24.126
55
768.111
857.758
90
2.918.600
4.334.634
67
19.419
43.330
61.436
71
2.918.600
4.334.634
67
19.419
43.330
61.436
71
672.090
629.075
107
500.808
457.534
109
1.172.898
1.086.609
108
672.090
629.075
107
500.808
457.534
109
1.172.898
1.086.609
108
63.319
75.397
84
61.807
257.542
24
125.126
332.939
38
63.319
75.397
84
61.807
257.542
24
125.126
332.939
38
1.276.622
from others
1.276.622
1.276.622
1.276.622
218.610
70.588
310
VARIOUS ASSETS
3.706.269
3.451.347
107
281.730
277.561
102
3.987.999
3.728.908
107
TANGIBLE FIXED ASSETS (other than land and buildings)
3.136.959
2.910.127
108
47.349
58.099
81
3.184.308
2.968.226
107
2.991.891
2.777.552
108
31.966
42.716
75
3.023.857
2.820.268
107
145.069
132.575
109
15.383
15.383
100
160.452
147.958
108
234.381
219.462
107
648.607
587.505
110
CALLED-UP SHARE CAPITAL UNPAID
1.
Equipment
2.
Other tangible fixed assets
II.
CASH AT BANK AND IN HAND
414.226
368.043
113
III.
INVENTORIES AND OTHER ASSETS
155.084
173.177
90
155.084
173.177
90
133.315
121.049
110
133.315
121.049
110
1.
Inventories
2.
Other assets
DEFERRED COSTS AND ACCRUED REVENUE
1.
Accrued revenue from interest and rents
2.
Current deferred insurance acquisitions costs
3.
Other current deferred costs and accrued revenue
G.
NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED
OPERATIONS
H.
OFF-BALANCE-SHEET ITEMS
TOTAL LIABILITIES
A.
214
61.371
Other current receivables from insurance operations
-
2.
11.504.879
from others
OTHER RECEIVABLES AND DEFERRED TAX RECEIVABLES (+/-)
1.
E.
from others
447.564
24.579.667
Other receivables from coinsurance and reinsurance
-
III.
447.564
447.564
Receivables from reinsurers' shares in claims
-
5.
447.564
from others
CAPITAL
I.
52.128
42
4.174.050
116
148.931
103.896
143
148.931
103.896
143
21.769
52.128
42
5.001.541
4.277.946
117
117
243.348
229.992
106
392.279
333.887
4.410.732
3.797.563
116
4.410.732
3.797.563
116
198.530
146.496
136
198.530
146.496
136
4.842.438
74.605
6.491
18.123.901
17.397.496
104
4.609.396
9.451.834
299.404.493
259.102.296
116
338.649.071
349.055.649
18.123.901
74.605 12.669
17.397.496
104
97 634.940.266 603.884.748
105
27.278.410
25.327.912
108
27.695.023
43.680.493
63
54.973.434
69.008.404
80
CALLED-UP CAPITAL
20.430.855
20.430.855
100
7.995.326
7.995.326
100
28.426.181
28.426.181
100
1.
Share capital
20.430.855
20.430.855
100
7.995.326
7.995.326
100
28.426.181
28.426.181
100
2.
Uncalled capital (as deduction item)
II.
CAPITAL RESERVES
III.
RESERVE FROM PROFIT
IV.
21.769
4.852.609
1.
Contingency reserves
2.
Legal and statutory reserves
3.
Reserves for own equities and participating interests
4.
Own equities and participating interests (as deduction
item)
5.
Equalisation reserves for credit insurance
6.
Catastrophe equalisation reserves
7
Other reserves
REVALUATION RESERVE
1
Revaluation reserve regarding tangible FA
2
Revaluation reserve regarding non-current financ.
investments
3
Revaluation reserve regarding current financ.
investments
4
Other revaluation reserve
V.
NET PROFIT OR LOSS BROUGHT FORWARD
VI.
NET PROFIT OR LOSS FOR THE PERIOD
739.652
739.652
100
2.072.254
2.072.254
100
2.811.907
2.811.907
100
3.766.027
2.856.485
132
10.367.996
9.568.463
108
14.134.023
12.424.948
114
2.043.085
2.043.085
100
1.599.065
799.533
200
3.642.151
2.842.618
128
1.143.317
233.775
489
1.143.317
233.775
489
579.624
579.624
100
8.768.931
8.768.931
100
9.348.555
9.348.555
100
-42.693
-1.083.650
4
4.488.156
22.355.867
20
4.445.463
21.272.217
21
-42.693
-1.083.650
4
4.488.156
22.355.867
20
4.445.463
21.272.217
21
2.384.570
2.118.253
113
1.688.582
4.073.152
2.118.253
192
1.082.708
1.688.582
64
1.082.708
1.954.899
55
106
19.833.765
12.093.800
164
98 460.773.759 440.260.382
105
266.317
B.
C.
GROSS TECHNICAL PROVISIONS AND DEFERRED PREMIUM REVENUE
14.283.765
6.863.800
208
5.550.000
5.230.000
225.452.705
200.693.032
112
235.321.054
239.567.350
F I N A N C I A L
R E P O R T
145
D.
E.
I.
GROSS UNEARNED PREMIUMS
II.
GROSS MATHEMATICAL PROVISIONS
III.
GROSS PROVISIONS FOR CLAIMS OUTSTANDING
IV.
GROSS PROVISIONS FOR BONUSES AND REBATES
V.
OTHER TECHNICAL PROVISIONS
145.362.814
72.331.039
124.219.702
104
766.252
821.172
224.343.715
227.929.751
98 224.343.715 227.929.751
98
10.211.088
10.816.427
94 155.573.901 135.036.129
115
117
1
Gross provisions for the benefit of life-assurance
policyholders
2
Amount ceded to reinsurance
PROVISIONS FOR OTHER PERILS AND COSTS
1.
Provisions for pensions
2
Other provisions
93
76.172.780
73.152.211
104
210.246
320.491
66
210.246
320.491
66
4.473.117
3.821.800
117
4.473.117
3.821.800
117
NET PROVISIONS FOR THE BENEFIT OF LIFE-ASSURANCE
POLICYHOLDERS WHO BEAR THE INVESTMENT RISK
46.944.386
34.770.269
135
46.944.386
34.770.269
135
46.944.386
34.770.269
135
46.944.386
34.770.269
135
2.353.702
2.249.859
105
744.128
686.497
108
3.097.830
2.936.356
105
2.246.569
2.196.733
102
744.128
686.497
108
2.990.697
2.883.230
104
107.132
53.126
202
107.132
53.126
202
28.658.471
22.711.125
126
17.363.263
18.554.947
94
42.908.435
36.992.874
116
4.253.630
4.410.106
96
9.803.032
6.928.021
141
14.056.662
11.338.127
124
AMOUNTS OWED FOR INVESTMENTS TO (DEPOSITS RECEIVED
FROM) REINSURERS UNDER REINSURANCE CONTRACTS WITH
CEDING UNDERTAKINGS
F.
G.
OTHER LIABILITIES
I.
1.
liabilities to policyholders
2.055.989
1.730.425
119
67.132
589.428
11
2.123.121
2.319.854
92
to others
2.055.989
1.730.425
119
67.132
589.428
11
2.123.121
2.319.854
92
liabilities to insurance brokers
1.680.434
1.876.945
90
1.680.434
1.876.945
90
1.680.434
1.876.945
90
1.680.434
1.876.945
90
517.207
802.736
64
9.735.900
6.338.593
10.253.107
7.141.328
144
9.735.900
6.338.593
2.
3.
to others
other liabilities from direct insurance operations
-
II.
to others
LIABILITIES FROM COINSURANCE AND REINSURANCE
OPERATIONS
1.
liabilities from coinsurance premiums
-
to others
2.
liabilities from reinsurance premiums
3.
Liabilities for shares in coinsurance claims amounts
4.
Liabilities for shares in reinsurance claims amounts
-
to others
to others
to others
III.
DEBENTURE LOANS
IV.
LIABILITIES TO CREDIT INSTITUTIONS
V.
LIABILITIES FROM FINANCIAL CONTRACTS
VI.
OTHER LIABILITIES
a)
b)
517.207
802.736
64
12.003.089
114
63.968
175.686
36
63.968
175.686
63.968
175.686
36
63.968
175.686
36
13.501.236
11.806.877
114
13.501.236 11.806.877
114
13.501.236
11.806.877
114
13.501.236 11.806.877
57.359
20.526
279
57.359
20.526
279
57.359
154 10.253.107
7.141.328
144
13.633.660 12.003.089
114
20.526
279
57.359
20.526
279
65 15.218.113 13.651.658
111
11.097
11.097
11.097
11.097
10.771.181
6.297.930
171
Deferred tax liabilities
Other current liabilities
154
13.633.660
Other non-current liabilities
3.
H.
75.406.528
10.771.181
6.297.930
171
36
114
7.560.231
11.626.926
1.066.464
6.178.400
17
847.854
6.178.400
1.066.464
6.178.400
17
847.854
6.178.400
14
6.493.767
5.448.526
119 14.370.259
7.473.259
192
2.004.640
1.869.655
107
27.360
46.781
58
2.613.598
2.599.182
101
2.875.271
4.273.197
67
14
1
Current liabilities to employees
2.004.640
1.869.655
107
2.
Other current liabilities from insurance operations
2.586.238
2.552.401
101
3.
Current liabilities from financing
4.
Liabilities for corporate income tax
1.273.754
128.608
990
469.392
1.087.337
43
1.743.146
1.215.945
143
5.
Other current liabilities
4.887.130
1.747.266
280
3.121.745
41.211
7.575
8.008.875
1.788.477
448
1.377.441
1.256.569
110
5.031.216
6.566.094
77
6.408.657
7.822.663
82
132.666
38.581
344
56.626
55.626
102
189.291
94.207
201
1.244.776
1.217.988
102
4.974.590
6.510.468
76
6.219.366
7.728.456
80
18.123.901
17.397.496
104
18.123.901 17.397.496
104
19.419
ACCRUED COSTS AND DEFERRED LIABILITIES
1.
Accrued costs and deferred liabilities
2.
Other accrued costs and deferred liabilities
I.
NON-CURRENT LIABIL. DEPENDENT ON ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS
J.
OFF-BALANCE-SHEET ITEMS
Ballance sheet
OF LONG-TERM BUSINESS FUND 5063400020 - traditional insurance
In EUR
as at 31.12.2008
ASSETS
A. INVESTMENTS IN PROPERTY AND EQUIPMENT
I.
Investment property
II. Investments in subsidiaries and associated undertakings
1. Investments in subsidiaries
2. Investments in associated undertakings
III. Other financial investments
Growth index
265.054.834
263.313.719
53.025
290.957.759
289.230.022
54.367
91
91
98
263.260.694
289.175.655
91
F I N A N C I A L
R E P O R T
146
as at 31.12.2007
B.
C.
D.
1. Equities and other variable-yield securities
2. Fixed-yield debt securities
3. Shares in investment funds
4. Mortgage loans granted
5. Other loans granted
6. Deposits with banks
7. Other financial investments
RECEIVABLES
I.
Receivables from direct insurance operations
1. Receivables from policyholders
2. Receivables from insurance brokers
3. Other receivables from direct insurance operations
II. Receivables from reinsurance
III. Other receivables
VARIOUS ASSETS
I.
Cash at bank and in hand
II. Other assets
CURRENT DEFERRED COSTS AND ACCRUED REVENUE
1. Accrued revenue from interest and rents
2. Current deferred acquisitions costs
3. Other current deferred costs and accrued revenue
LIABILITIES
A. REVALUATION RESERVE
B. NET TECHNICAL PROVISIONS
I.
Net unearned premiums
1. Gross unearned premiums
2. Amount ceded to reinsurance/coinsurance
II. Net mathematical provisions
1. Gross mathematical provisions
III. Net provisions for claims outstanding
1. Gross provisions for claims outstanding
IV. Net provisions for bonuses and rebates
1. Gross provisions for bonuses and rebates
C. NET TECHNICAL PROVISIONS - UNIT-LINKED INSURANCE
Gross technical provisions for the benefit of unit-linked
1.
life insurance
AMOUNTS OWED FOR INVESTMENTS TO (DEPOSITS
D. RECEIVED FROM) REINSURERS UNDER REINSURANCE
CONTRACTS WITH CEDING UNDERTAKINGS
E. OTHER LIABILITIES
I.
Liabilities from direct insurance operations
1. Liabilities to policyholders
2. Liabilities to insurance brokers
3. Other liabilities from direct insurance operations
II. Liabilities from coinsurance and reinsurance
III. Other liabilities
F. ACCRUED COSTS AND DEFERRED LIABILITIES
12.357.881
221.611.302
6.537.769
31.479.084
231.639.682
6.792.386
39
96
96
22.753.741
19.264.503
118
1.387.671
892.929
892.893
1.520.448
1.073.663
1.023.007
91
83
87
36
50.656
0
494.742
226.488
226.488
446.785
207.289
207.289
111
109
109
252.455.079
4.488.156
235.321.054
766.252
766.252
271.323.805
22.065.048
239.567.350
821.172
821.172
93
20
98
93
93
224.343.715
224.343.715
227.929.751
227.929.751
98
98
10.211.088
10.211.088
10.816.427
10.816.427
94
94
9.626.845
9.501.459
67.132
6.448.470
6.373.273
589.428
149
149
11
9.434.327
5.783.845
163
125.386
3.019.024
75.197
3.242.937
167
93
126.956
126.956
F I N A N C I A L
R E P O R T
147
Income statement
OF LONG-TERM BUSINESS FUND 5063400020 - traditional insurance
In
EUR
from 1.1. to
31.12.2008
I.
EARNED PREMIUMS, NET OF REINSURANCE
1. Written insurance premiums
2. Change in unearned premiums (+/-)
II. INVESTMENT INCOME
1. Income from participating interests
1.1. Income from participating interests in subsidiaries
Income from participating interests in associated
1.2.
companies
1.3. Income from participating interests in other companies
2. Income from other investments
2.1. Income from land and buildings
2.2. Interest income
2.3. Other investment income
2.3.1. Revaluation financial income
2.3.2. Other financial income
3. Income from value re-adjustments on investments
4. Gains on the realisation of investments
III.
IV. NET CLAIMS INCURRED
1. Gross claims paid
2. Change in gross provisions for claims outstanding (+/-)
V. CHANGE IN NET OTHER TECHNICAL PROVISIONS(+/-)
1. Change in mathematical provisions
1.1. Change in MP less participation in profit
1.2. Change in MP arising from participation in profit
2. Change in other net tehnical provisions (+/-)
VI. BONUSES AND REBATES
VII. COSTS CALCULATED INTO POLICIES
1. Initial expenses
2. Operating, administrative and overhead costs
3. Final costs or payment costs
VII.a. NET OPERATING EXPENSES
1. Acquisition costs
2. Change in deferred acquisition costs (+/-)
3. Administration costs
3.1. Depreciation of assets required for operations
3.2. Labour costs
3.2.1. Wages and salaries
3.2.2. Social and pension insurance costs
3.2.3. Other labour costs
Gross costs of services provided by individuals not engaged in
3.3.
business activity
3.4. Other operating expenses
Earned premiums from reinsurance commissions and shares in
4.
technical result from reinsurance contracts(-)
VIII. INVESTMENT CHARGES
1. Depreciation of investments not required for operations
2. Asset management charges, interest and other charges
3. Revaluation charges
4. Losses on the realisation of investments
IX. OTHER NET TECHNICAL CHARGES
PROFIT/LOSS - LIFE INSURANCE (I + II + III - IV + V - VI - VII - VIII
X.
- IX )
PROFIT/LOSS - LIFE INSURANCE (I + II + III - IV + V - VI - VII.a XI.
VIII - IX )
Growth index
36.886.914
36.831.994
54.920
14.381.083
1.543.999
39.424.750
39.345.285
79.465
29.301.531
591.539
94
94
69
49
261
1.543.999
11.340.914
591.539
11.244.528
261
101
11.340.914
11.244.528
101
54.494
1.441.676
20.182
30.674.346
31.279.686
-605.340
1.377.772
1.377.772
-938.728
2.316.500
17.465.464
46.038
28.961.884
28.823.340
138.544
21.984.158
21.984.158
2.619.578
19.364.580
8
44
106
109
-437
6
6
-36
12
6.641.285
1.903.098
4.738.187
6.722.498
1.566.092
5.156.406
99
122
92
8.597.294
1.613.765,69
7.999.546
2.009.641
107
80
6.987.951,38
107.891,64
5.126.641,15
3.867.357,91
602.835,36
656.447,88
5.989.905
140.012
4.246.446
3.005.591
501.280
739.575
117
77
121
129
120
89
72.651,44
40.828
178
1.680.767,15
1.562.618
108
6.544.098
1.342
15.152
1.230
43.189
109
6.542.720
37
75.022
13.922
83.858
0
89
5.975.655
11.004.769
54
4.019.646
9.727.721
41
4.423
F I N A N C I A L
R E P O R T
148
from 1.1. to
31.12.2007
Ballance sheet
OF LONG-TERM BUSINESS FUND 5063400022 - unit-linked insurance
In EUR
as at 31.12.2008
as at 31.12.2007
Growth
index
ASSETS
A. INVESTMENTS IN PROPERTY AND EQUIPMENT
I.
Investment property
II. Investments in subsidiaries and associated undertakings
1. Investments in subsidiaries
2. Investments in associated undertakings
III. Other financial investments
1. Equities and other variable-yield securities
2. Debt fixed-yield securities
3. Shares in investment funds
4. Mortgage loans granted
5. Other loans granted
6. Deposits with banks
7. Other financial investments
B. RECEIVABLES
I.
Receivables from direct insurance operations
1. receivables from policyholders
2. receivables from insurance brokers
3. other receivables from direct insurance operations
II. Receivables from reinsurance
III. Other receivables
C. VARIOUS ASSETS
I.
Cash at bank and in hand
II. Other assets
D. CURRENT DEFERRED COSTS AND ACCRUED REVENUE
1. Accrued revenue from interest and rents
2. Current deferred insurance acquisitions costs
3. Other current deferred costs and accrued revenue
42.340.721
41.916.555
34.961.180
34.689.902
121
121
41.916.555
34.689.902
121
6.692.244
31.334.110
2.403.859
26.794.567
278
117
3.890.202
5.491.477
71
394.297
388.225
374.953
259.105
248.356
237.422
152
156
158
13.271
10.934
121
6.072
7.893
7.893
10.749
12.173
12.173
56
65
65
LIABILITIES
A. REVALUATION RESERVE
B. NET TECHNICAL PROVISIONS
I.
Net unearned premiums
II. Net mathematical provisions
III. Net provisions for claims outstanding
IV. Net provisions for bonuses and rebates
C. NET TECHNICAL PROVISIONS - UNIT-LINKED INSURANCE
Gross technical provisions for the benefit of unit-linked life
1.
insurance
AMOUNTS OWED FOR INVESTMENTS TO (DEPOSITS
D. RECEIVED FROM) REINSURERS UNDER REINSURANCE
CONTRACTS WITH CEDING UNDERTAKINGS
E. OTHER LIABILITIES
I.
Liabilities from direct insurance operations
1. Liabilities to policyholders
2. Liabilities to insurance agents/brokers
3. Other liabilities from direct insurance operations
II. Liabilities from coinsurance and reinsurance
III. Other liabilities
F. ACCRUED COSTS AND DEFERRED LIABILITIES
49.289.782
38.660.969
127
46.944.386
34.770.269
135
46.944.386
34.770.269
135
333.204
301.572
567.543
554.748
59
54
301.572
554.748
54
31.631
2.012.192
12.795
3.323.157
247
61
21.975
21.975
F I N A N C I A L
R E P O R T
149
Income statement
OF LONG-TERM BUSINESS FUND 5063400022 - unit-linked insurance
In
EUR
I.
EARNED PREMIUMS
1. Written insurance premiums
2. Gross written premium, reinsurance share
3 Change in unearned premiums (+/-)
II. INVESTMENT INCOME
1. Income from participating interests
2. Net unrealised gains from LTBF investments
3. Income due to elimination of investment value re-adjustments
4. Gains on the realisation of investments
5. Other investment income
III.
IV. CHARGES ARISING FROM PROCEEDS OR SURRENDER VALUE
1. Policy proceeds
2. Change in gross provisions for claims outstanding (+/-)
V. CHANGE IN NET OTHER TECHNICAL PROVISIONS(+/-)
1. Change in mathematical provisions
2. Change in insurance provisions in the event of death (+/-)
VII. CALCULATED COSTS AND COMMISSIONS
1. Acquisition costs (commissions)
2. Redemption fee
3. Management fee
4. Other operating expenses
VII. INVESTMENT AND FINANCING CHARGES
1. Asset management charges
2. Net unrealised losses from LTBF investments
3. Revaluation charges
4. Other investment charges
VIII. OTHER NET TECHNICAL CHARGES
IX. OTHER INCOME LESS CHARGES
PROFIT/LOSS OF LIFE INSURANCE LONG-TERM UNIT-LINKED
X.
BUSINESS FUND PRIZMA
from 1.1. to
31.12.2008
29.088.729
29.093.686
F I N A N C I A L
R E P O R T
150
Growth
index
120
120
-4.957
1.442.126
from 1.1. to
31.12.2007
24.296.338
24.329.495
-29.626
-3.532
2.313.390
1.304.116
2.253.258
58
138.010
132.964
2.261.937
1.707.317
554.620
11.614.540
11.614.540
230
162
156
201
92
57
56
5.176.543
1.387.827
60.132
82.176
1.448.402
847.874
600.528
20.551.154
20.782.957
-231.804
6.518.891
3.329.166
3.788.717
10.796.203
3.189.725
2.012.421
119
536
10.790.126
1.044.697
967.723
1.033
544.735
794
68.566
1.359.330
-3.838.169
-35
140
62
79
42
6.077
Založila: ZM d.d./ ISSN: 1581 – 2219
Produkcija: ZM d.d.
Lektoriranje: Lingula d.o.o.

ANNUAL REPORT OF ZAVAROVALNICA MARIBOR d.d. 2008

Transcription

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