Today Triglav issued a profit warning as a result of the Slovenian Government setting the maximum price of supplemental health insurance premiums. Based on the likely scenario, as stated by Triglav, it is estimated that the Group’s planned EBT for 2023 may decrease by 25-40% compared to the initially planned range of EUR 95-110m.
This morning Triglav issued a profit warning, as a result of the Slovenian Government setting the maximum price of supplemental health insurance premium. The Decree introduced immediate regulation of supplemental health insurance prices, obliging the Group to continue implementing supplemental health insurance until it is abolished. The Decree will be in force until the end of 2023, but it is expected that, even before its expiration, the aforementioned Act will be amended in such a way as to abolish the existing supplemental health insurance system. As stated, “The Group supports the amendment of said Act to take place as soon as possible, because the premium amount, which is determined by the Decree, is not sufficient to cover supplemental health insurance claims. “
As a result of the aforementioned, Triglav estimates its EBT for 2023, which was initially planned in the range of EUR 95-110m, may decrease around 25-40% due to the loss in the health insurance segment. In the event that supplemental health insurance will be abolished by law as of 1 September 2023, the Group estimates that the loss from health insurance will reduce Group’s EBT by 25%. In the scenario where supplemental health insurance is not abolished by law and the Decree continues to apply until the end of 2023, the mentioned impact might be even higher and result in 40% lower EBT.