In 2022, the total GWPs of the Slovenian insurance sector increased by 7.3% YoY. In terms of the segments, the Non-life insurance segment grew by 8.52% YoY, while the Life Insurance segment increased by 4.2%.
Recently, the Slovenian Insurance Association published the latest data on the developments recorded by the Slovenian Insurance sector, for the entire of 2022. In the report, we can see that the insurance sector is on an upward trajectory, with increases recorded in both the Life and Non-life segments. In total, the gross written premiums (GWPs) of the Slovenian insurance sector increased by 7.3% YoY (or EUR 190.4m) and 8.7% MoM (or EUR 225.5m) and amounted to EUR 2.81bn.
Breaking this growth by segments, and starting with the Non-Life insurance, the total GWPs in this segment grew by 8.52% YoY (or EUR 159.2m) and 8.2% MoM (or EUR 153.4m) and amounted to EUR 2.03bn. This would mean that out of the total, 72.3% of the GWPs in the Slovenian insurance sector go to the Non-life segment. Meanwhile, the Life insurance sector recorded GWP growth of 4.2% YoY (or EUR 31.1m) and 10.2% MoM (or EUR 72m), which amounted to EUR 778m.
Looking at the Non-life insurance by policy, on a yearly basis and in absolute terms, the most considerable growth was recorded by Land motor vehicles insurance, which grew by EUR 37.5m (or 11.1%), followed by Health insurance, with the growth of EUR 32.1m (or 5%), Motor vehicle liability insurance, which increased by EUR 24.9m (or 9.3%), and Other damage to property insurance, which increased by EUR 22.8m (or 12.7%). No notable decline except the slight EUR 184.5k decrease in the Liability for ships insurance GWPs was recorded. On the other hand, on an MoM basis, the most significant increase was recorded by Health insurance GWPs, which increased by EUR 59.9m, or 9.7%, followed by a EUR 26.5m (or 7.6%) increase in Land motor vehicles insurance, as well as the EUR 21.1m (or 7.8%) increase in Motor vehicle liability insurance.
Moving on to the Life insurance, the largest GWP increase in this segment was recorded by the Unit-linked life insurance, which increased by EUR 13.6m, or 4.9% YoY, and EUR 25.1m (or 9.4%) MoM. Life assurance GWPs also recorded a slight increase of EUR 763.8k (or 0.3%) MoM, but a more notable EUR 24.7m (or 9.2%) increase YoY.
Changes recorded by the Slovenian insurance sector in 2022 (YoY, EUR)
Source: Slovenian Insurance Association, InterCapital Research
In all of these policies’ cases, we can see two things: first of all, the cyclicality of the industry, as some policies are preferred at certain times compared to others, which is to be expected. After all, Health insurance policies are usually taken in larger quantities in the winter than in summer due to a larger presence of diseases, various vehicle insurances are more often taken during the summer when people travel more, and so on.
What all of this data can show us though, is that despite all the macroeconomic hurdles we have witnessed in 2022, the requirements for insurance in Slovenia are still quite large, and as such the sector is still growing and expanding. This trend is quite positive for Slovenian insurance companies in particular, such as Triglav and Sava Re and thus if it continues it should be supportive of further expansion of their overall revenues, but also profitability if the continued growth in the Non-life segment continues.