Yesterday, Triglav held virtual Capital Markets Day 2022 where its Management discussed its strategy until 2025, main goals in business development and Group expansion. Here are key takeaways from their investor day.
Takeaway No. 1 CFO confirmed that they would like to grow in Asset Management, so market speculation on potential purchase of NLB Skladi is still possible. Total revenues are expected to grow at CAGR of 4% in the period from 2020 till 2025. Premium growth is expected to come from other regional and international markets (both freedom of services in EU and Adria region). Growth of other income is expected to be higher than GWP growth. Revenue growth is also going to be supported by AUM growth.
Takeaway No. 2 Increase in profitability and ROE of 10% in the period from 2022 to 2025 is estimated by the Management. Key drivers of targeted ROE is growth of income and asset under management and stable underwriting results. Increased productivity is expected to come from cost initiatives and savings realized due to digitalisation and automation of processes, coupled with prudent capital management.
Takeaway No. 3 Triglav Group is looking to become leading digitalized insurance and financial group in the Adria region. Therefore, Triglav has embarked on digital transformation process that will achieve outstanding customer experience. It will be realized by Triglav’s transition from insurance-oriented business model by adding assistance and related services to service-oriented business model. Triglav develops interconnected ecosystems that include insurance products. The example is shared platform for its customers consisting of different segments called Triglav Health, Triglav Pets, Triglav Home, etc. through which customers can obtain different products at uniform customer experience across all channels, processes, and products. This will be realized by decoupling core system from DWS and introducing Client relationship management through all parts of process value chain. Triglav plans to address this goal in three fields: Digital platform (which provides outstanding user experience), Digital Service as alternative to traditional sales channel and Digital onboarding of clients. In the future Triglav Group also expect to embark on higher automation of the claims processes.
Takeaway No. 4 Strong ambitions to become leader in delivering Sustainable Development (ESG) solutions and number one locally in this segment. In Investment segment Triglav expects to increase share in green and sustainable investments. Also, their exposure in investments to coal exit list issuers is expected to be less than 1% of total investment value by 2025. In Insurance segment, Triglav is eager to promote products related to sustainable mobility. In company’s processes Triglav is looking to increase share of electricity from RER, reduce energy and paper consumption and to achieve less production of waste. Triglav will also be looking to engage stakeholders in their mission to achieve high levels of client satisfaction. One of ways to increase employee satisfaction will be by implementing concept of flexible working at Group level by 2023. Another important ESG goal will be engagement of overall society by further participation in social responsibility and environmental projects. Efficient corporate governance is one of the main pillars of the company. And by 2025 Triglav expects to upgrade public exposure in ESG reporting.
Takeaway No. 5 No change in dividend policy is expected by the strategy. To read on Triglav’s historic dividends, please clique here.