In 2020, GWPs recorded an increase of 2% YoY. Of that Non-life observed an increase of 3.1%, while Life is down by 0.4%

The Slovenian Insurance Association published their monthly update on the GWP development in Slovenia. In 2020, the Slovenian insurance market showed solid resilience with regards to the pandemic, as GWPs increased by 2% YoY to EUR 2.568bn. Of that non-life segment stood at EUR 1.82bn (+3.1% or EUR 54.5m).  

GWP development (2017 – 2020) (%)

The mentioned segment, which accounts for 70.8% of the total GWPs, showed a very solid performance on the back of a very strong health insurance performance (+7.1% YoY). The increase in Health insurance premiums, as the largest non-life item, arguably came mostly on the back of increasing prices of health insurance premiums.

It is noteworthy that land motor vehicles insurance observed an increase of 3.3%, amounting to EUR 319.3m. Meanwhile motor vehicle liability insurance witnessed a slight decrease of 0.7%, amounting to EUR 272.98m. Of all insurance segments, Credit insurance observed the highest decrease of 20.1%. This does not come as a surprise given the expected lower loan issuance activity in Slovenia as a result of Covid-19 outbreak coupled with the restrictions on the consumer loans placed by the Bank of Slovenia in November 2019.

GWPs by Insurance Segment 2020 (%)

Turning our attention to the life segment, it recorded a 0.4% YoY decrease in 2020. To be specific, the entire life insurance segment amounted to EUR 751m. Within the segment, unit-linked life insurance observed decrease of 4.3%.

All of the above is quite encouraging for the FY 2020 results ahead of Slovenian Insurers Triglav and Sava Re. We note that both companies will likely outperform the Slovenian market (both on a Slovenian and Group level), in terms of total GWP growth.

Top and Bottom Performing Segment 2020 (EUR m)