ZAVAROVALNICA MARIBOR D.D. ANNUAL REPORT

Transcription

ZAVAROVALNICA
MARIBOR D.D.
ANNUAL
2012
REPORT
Life goes on with ZM by your side
0
1
Maribor, 18 March 2013
Audited
2
THE CONTENTS OF THE AUDITED ANNUAL REPORT FOR
2012
The Conclusion of the Management Board on the Annual Report
4
Company Profile
5
Bussines report
22
Financial Report
80
Enclosure to the Annual Report
(Financial Statements According to Schemes of the Supervisory
Organ)
174
3
4
PRESENTATION OF THE INSURANCE COMPANY
It has been another successful year for Zavarovalnica Maribor d.d. (hereinafter ZM) that the company
concluded with a positive business result, generating a profit of €7,717 thousand and a 13.2 percent
increase in equity.
Equity growth
120.000
100.000
in EUR ,000
80.000
60.000
99.109
40.000
67.314
20.000
77.867
87.540
51.378
0
2008
2009
2010
2011
2012
Trend of net profit and loss account
12.000
10.595
10.557
10.000
7.717
in EUR ,000
8.000
6.000
4.000
2.792
2.000
0
-555
-2.000
2008
2009
Zavarovalnica Maribor d.d. Company Profile
2010
2011
2012
5
FINANCIAL INDICATORS
2012
2011
2010
2009
2008
263,910
263,244
259,599
266,041
251,845
186,918
187,839
188,290
199,016
185,868
76,992
75,405
71,309
67,025
65,977
- Standard life insurance
30,553
31,882
33,073
35,060
36,883
- Unit-linked life insurance
46,440
43,523
38,236
31,965
29,094
Charged gross claims
148,179
140,022
151,283
190,212
190,871
Property insurance
109,912
102,530
111,124
151,156
157,884
38,268
37,492
40,158
39,056
32,987
- Standard life insurance
25,989
27,001
31,368
34,241
31,280
- Unit-linked life insurance
12,278
10,490
8,790
4,815
1,707
830,362
760,989
734,042
680,833
634,940
99,109
87,540
77,867
67,314
51,378
Property insurance
28,278
28,115
24,734
20,620
4,745
Life insurance
14,108
13,736
8,667
9,212
3,844
651,438
618,187
575,443
514,927
463,943
684,135
622,228
590,434
559,361
511,314
66,277
60,428
62,863
66,023
68,525
Profit and loss account prior to taxation
7,515
14,639
14,226
-587
6,032
Net income
7,717
10,557
10,595
-555
2,792
Book value per share in EUR2
7,96
7,03
7,62
6,59
7,54
3
Net income per share in EUR
0,62
0,93
1,04
-0,08
0,41
Number of employees on 31 Dec
881
875
874
904
909
Number of employees per workihg hours done
830
845
864
873
872
In EUR ,000
Charged gross premium
Property insurance
Life insurance
Life insurance
Total assets
Equity
Surplus of available equity
1
Investments
Technical provisions
Technical provisions transferred to the co- and
reinsurers
1
Balance sheet items: financial investments and assets of insured persons with investment risk.
Equity as at 31 December/the total number of issued shares as at 31 December.
3
Net profit and loss account/weighted average number of shares in the reporting period
2
6
REPORT ON THE WORK OF THE SUPERVISORY BOARD
In 2012, the supervisory board of the Company consisted of the following members:
Following a decision adopted at the 38th meeting of the Assembly of ZM d.d. held on 6 July 2012,
Matjaž Kovačič, Chairman, was replaced by Aleš Hauc (proposed by the shareholder Nova KBM
d.d.); Dušan Čeč, Deputy Chairman (proposed by the shareholder Pozavarovalnica Sava d.d.);
following a decision adopted at the 38th meeting of the Assembly of ZM d.d. held on 6 July 2012,
Manja Skernišak, Member, was replaced by Miha Šlamberger, MSc (proposed by the shareholder
Nova KBM d.d.); Janez Komelj, DSc, Member (proposed by the shareholder Pozavarovalnica Sava
d.d.); Edi Kosi, Member (representative of ZM d.d. employees – Chairman of ZM d.d. Trade Union
Organisation - ZSSS) and Robert Ciglarič, Member (representative of ZM d.d. employees – Chairman
of the Workers’ Council).
Within the frame of legal and statutory power for supervision of company business management and
concern of its legal compliance and efficiency the Supervisory Board held eight regular meetings and
three correspondence sessions during the reporting period.
In the area of supervision on management and legal compliance of the company and after
preliminary discussions and statements adopted at the meetings of the Supervisory Board Audit
Committee the Supervisory Board among others (which met at nine regular sessions in 2012):
•
Adopted the business plan and approved the financial plan for 2012 and determined the goals
and limits of realistically expected operating result (based on the assumption that no
catastrophic damage would occur) in terms of ROE. On the basis of Audit Committee’s
findings and recommendations, the Supervisory Board instructed the Management Board to
add to the ZM business plan an additional point about the business policy concerning the
capital adequacy and to provide suitable comments to all tabular presentations, and to monitor
the changes, in particular, in those operating expenses, the index of which exceeded 100 in
the previous reporting period;
•
Monitored regularly the planned company operations through trimestral reports (comparable
data for the same period of the previous business year) provided by expert services of ZM d.d.
on:
- changes in the total gross insurance premium by insurance classes and individual
business units of the company;
- the trend of benefit payments – in total and by individual business company units; in
relation to this, it discussed the analysis prepared by Company’s expert services on
loss results and measures to improve the condition in this segment of operations;
•
Discussed and confirmed a revised annual report and adopted the annual report of the
Management Board for the financial year 2011 of the company as a whole and a consolidated
annual report of the ZM Group. It expressed its opinion on both annual reports and reports by
the certified actuary of the company and the Internal Audit Service for the year 2011;
•
•
Discussed quarterly reports on company operations by first of all monitoring the
changes in company’s capital adequacy; in relation thereof, it was informed on the Audit
Committee’s report on the capital adequacy of ZM d.d. pursuant to the Insurance Act and
Solvency II at its session held on 6 September 2012;
In the area of company's internal audit, the Supervisory Board adopted the report on the audits
performed in 2011 and confirmed the operations program of the Internal Audit Services for 2012, as
well as promptly discussed and adopted reports on quarterly internal audits in 2012 and the report on
self-assessment of Internal Audit Services.
In the area of corporate legislation, the Supervisory Board:
• discussed the text of the proposals made at both Assembly meetings, namely the 38th
meeting of the General Meeting of Shareholders held on 6 July 2012 and for the 39th held on
22 October 2012;
7
•
Regarding the planned sale of the equity stake of Nova KBM d.d. in ZM d.d., it instructed the
Management of the company to keep it regularly informed on all activities, which the
Management Board is obliged to implement in the process of reviewing Company operations
based on requests expressed by potential buyers ''Due diligence'', and most of all it instructed
that the Management and all holders of activities authorized by it act so as to protect the
Company’s market position;
•
Adopted the amendments and modifications to the Charter of the Audit Committee;
In the area of human resources, the Supervisory Board:
• monitored the company’s employment policy, adopted the employment report for 2011,
approved the guidelines of human resources plan for 2012. set the requirement for verification
of working processes and based on the findings execution of their rationalization in the sense
of optimal position occupation;
•
Unanimously appointed Aleš Hauc, BSc (Econ.), representative of the shareholder Nova KBM
d.d. to the position of the Chairman of the Supervisory Board, for a four-year term starting on 6
July 2012;
•
Appointed the following representatives of the shareholder Nova KBM d.d. to the Audit
Committee:
- Tatjana Skaza,
- Miha Šlamberger, MSc,
who took the positions of the former members of the Committee Manja Skernišak and Nataša
Ziherl, starting on 12 July 2012;
•
Re-appointed Marko Planinšec, BSc (Econ.), Member of the Management Board for the
following areas:
- Accounting Sector,
- Finance Sector,
- Internal Audit Service
with a five-year term of office starting on 1 January 2013;
•
Instructed the Management Board to prepare a proposal for the structure of organisational unit
for risk management (coordination with the Solvency II directive);
•
Discussed and adopted a report on the harmonization of salaries of the Chairman and
Members of the Management Board of the Company with the Act Governing the
Remuneration of Managers of Companies with Majority Ownership held by the Republic of
Slovenia or Self-Governing Local Communities;
•
Discussed reports on the activities that had already been realised and the planned activities
related with the business process management project;
The Supervisory Board is not familiar with any illegality, irregularity or fraud in the operations of the
company.
8
ADDRESS BY THE CHAIRMAN OF THE MANAGEMENT BOARD
Dear company shareholders, business partners and co-workers…
.. 2012 was a breakthrough year in many
perspectives – on the Slovenian, European
and global levels. It was also a breakthrough
year for ZM. Our major shareholders started
selling our company, which brought a new (old)
majority shareholder to ZM: Pozavarovalnica
Sava. This process will see its epilogue in
2013 ...
.
All these changes lead to one single result: to do more right things in the correct way. Moreover, this
means that we can be that more proud of the right people who are with us – our insurance company
personifies us, people, and it is up to us how well we will operate: success does not depend only on a
technologically perfected product or on a global innovation, but on our competences and our
relationship – with each other, with the insured, injured parties and our partners.
The most important life motto of the present time has therefore (again) become trust as well as
respect for others – employees, customers, sponsored parties, local authority, children, educators —
in one word, for all participants that are within an organization and who affect our operations. The
responsibility starts with each individual. When we look a few years back, we can honestly say that in
2012 we invested all of our energy and efforts into responsible relations with our owners and insured
persons and of course with employees who are an indispensable part of our company. Constant
development and optimisation of processes, and at the same time social responsibility and sustainable
development are our duty and at the same time privilege.
In twenty years of independent (again) insurance company we have proven that we are a good team
in different areas, which is supported by the third place among most desirable employers according to
the Hewitt method in 2004, participation at the Family friendly certification gained as the first pilot
9
company in Slovenia in 2006 and upgraded with full certificate in December 2010, the Horus award for
social responsibility – finalist in 2009, ranking twice among the finalists of the best employer according
to the Zlata nit (Golden Thread) survey, and last but not least the financial data: 186.9 million euros of
collected gross premium in the area of property insurance, and 77.0 million euros of collected gross
premium in the area of life insurance. During the reporting period the company produced net profit in
the amount of 7.7 million euros.
In 2012 we remained capitally strong and we ensured safety to our insured persons and of course
remained loyal to our basic mission: to assure economic safety and trust of our business partners.
We care. We care about the society and its employees, the environment in which we live and work,
our insured persons and the society as such. Our slogan Life goes on with ZM by your side is our
commitment and our promise also for the year to come. And beyond.
Drago Cotar,
Chairman of the Management Board
10
COMPANY PROFILE
COMPANY ID
Company name:
Zavarovalnica Maribor, delniška zavarovalna družba
Short name:
Company headquarters :
Zavarovalnica Maribor d.d.
Cankarjeva ulica 3, 2507 Maribor
Telephone:
+386 2/2332 100
Fax:
+386 2/2332 530
Toll free number for clients:
080 19 20
Registration date:
26. December 1990,
Registry number 1/03762/00
Maribor District Court
Tax number:
VAT ID
44814631
SI44814631
Registration number:
5063400
Standard classification of activity:
K 65.120 - Insurance other than life insurance
Capital stock:
No. of shares:
EUR 55,426,291.34
12,453,831
Transaction accounts:
Other types of insurance
SI56 04515-0000512086 pri NKBM
Life insurance
SI56 02470-0011030576 pri NLB
Prizma KSNT-1
SI56 04515-0001049078 pri NKBM
ZM Zajamčeni KSNT - 2
SI56 0451 5000 1635 055 pri NKBM
ZM Garant KSNT - 2A
SI56 0451 5000 1786 666 pri NKBM
Supervisory organ type:
Supervisory Board
Email address:
Home page:
info@zav-mb.si
www.ZavarovalnicaMaribor.si
11
MANAGEMENT BOARD AND SUPERVISORY BOARD
The management of the company operates according to the so called two tier system, according to
which the Management Board is managing the company. The shareholders have the right to
participate in company management depending on the number of ordinary shares on their name and
in accordance with the decision on company establishment and statute of the company.
The employees participate in company management in accordance with the law and statute of the
company.
The parties of the company are: the Assembly, the Management Board and the Supervisory Board.
THE ASSEMBLY
The Assembly is company's highest body of governance. The Assembly is composed of legal entity
representative and financial entities that are entered into the share register or their authorized
representatives. The assembly mainly decides on company’s development and certain organisationalstatutory issues regarding the structure and the functioning of the Company. Assembly competence is
defined in the statute of the company.
Each share provides a shareholder with one vote at the meeting.
SUPERVISORY BOARD
The Members of the Supervisory Board and the representatives of shareholders are elected by the
General Meeting of Shareholders, whereas the members who are employee representatives are
appointed by the Workers’ Council of ZM. In 2012, the Supervisory Board acted in the following
composition:
Member
Matjaž Kovačič
Aleš Hauc
Dušan Čeč
dr. Janez Komelj
mag. Miha Šlamberger
Manja Skernišak
Edi Kosi
Robert Ciglarič
Function
Chairman
Chairman
Vice-Chairman
Member
Member
Member
Member - Employee
Representative
Member - Employee
Representative
Started
Ended
3 March 2009
6 July 2012
3 March 2009
3 March 2009
6 July 2012
3 March 2009
6 July 2012
3 March 2009
31 December 2012
6 July 2012
8 September 2010
AUDIT COMMITTEE OF THE SUPERVISORY BOARD ZM
The Supervisory Board appointed the Audit Committee as a permanent Supervisory Board’s
committee in 2009. In 2012, the Audit Committee acted in the following composition:
Member
Function
Dušan Čeč
Andreja Rahne
mag.Ignac Dolenšek
mag. Miha Šlamberger
Manja Skernišak
Nataša Ziherl
Tatjana Skaza
Chairman
Member
Member
Member
Member
Member
Member
Started
9 July 2009
16 August 2011
5 October 2011
12 July 2012
9 July 2009
9 July 2009
12 July 2012
Ended
12 July 2012
12 July 2012
12
MANAGEMENT BOARD
The Management Board consists of five members. The Rules of Procedure for Management Board’s
Work describe and govern the competences, the method of operation and decision-making process,
the representation and endorsements of members of the Management Board and other matters that
are important for the work and decisions taken by the Management Board of ZM. In terms of legal
transactions, the insurance company is always represented by two members of the Management
Board.
Drago Cotar, chairman of the Management Board since 1990
M.Sc. Borut Celcer, member of the Management Board since
12 January 2011
in charge of organization, informatics, actuarial, insurance technology,
claims processing and reinsurance area
M.Sc. David Kastelic , Management
Board member since 1 November 2006
in charge of
marketing
Marko Planinšec, member of the Management Board
since 1 January 2008
in charge of finances and
accounting
Srečko Čarni, member of the
Management Board and Worker Director since 1 December 2009
13
ORGANIZATIONAL STRUCTURE
Macro-organizational structure
Marketing
Sector
Life Insurance
Technology
Sector
Advisor to the Chairman of
the Management board
Advisor of the Management
board
Technical and
General Affairs
Department
Actuary
Department
Non life
Insurance
Technology
Sector
Claims
Sector
Accounting
Sector
MANAGEMENT
BOARD
International
Audit
Department
General-Legal
and Human
Resources
Department
Financial
Sector
Information
Technology and
Organization
Sector
Quality control Manager
Public Relations
Department
Reinsurance
Department
14
SECTOR AND DEPARTMENT DIRECTORS
Marketing Sector
Personal Insurance Technology Sector
Executive Manager: M.Sc. Evgen Likl
Executive Manager: Tomislav Ćaćić
Property Insurance Technology Sector
Executive Manager: M.Sc. Uroš Pušnik
Claims Sector
Executive Manager: Sebastjan Strmšek
Financial Sector
Executive Manager: M.Sc. Renata Doler Tisaj
Accounting Sector
Executive Manager: Anton Vadnjal
Information Technology and Organization
Sector
Executive Manager: Darko Šuštar
Actuarial Sector
Manager: Aleš Tomažin
Internal Audit Department
Manager: Boris Presker
Public Relations Department
Manager: M.Sc. Natalija Postružnik
General-Legal and Human Resources
Department
Manager: Samo Červek
Technical and General Affairs Department
Manager: Marjan Makari
Reinsurance Department
Manager: M.Sc. Dejan Zdovc
15
THE SALES NETWORK
ZM has an extensive network of branch units spread throughout the Republic of Slovenia. Its
operations are organised in more than 10 business units and 56 representative offices. The company
has 238 full-time field insurance sales representatives. The insurance company complements its own
sales network with 276 underwriting agencies and sole proprietors, who carry out underwriting
activities. At the same time, the insurance company also cooperates with many insurance brokers.
The insurance company has business cooperation agreements concluded with companies, which
provide services of technical inspections of motor vehicles. Moreover, the insurance company also
offers its range of tourist insurances in tourist agencies.
A list of business units (BU)
BU LJUBLJANA
BU MARIBOR
Dunajska cesta 8, 1000 Ljubljana, p.p. 353
Tel.: 01/234 55 04
Fax: 01/234 55 10
Email: pe-ljubljana@zav-mb.si
Manager: Marko Vilfan
Cankarjeva ul. 3, 2507 Maribor
Tel.: 02/233 23 07
Fax: 02/233 25 28
Email: info@zav-mb.si in
pe-maribor@zav-mb.si
Manager: Branko Tekmec
BU CELJE
BU KRANJ
Ljubljanska c. 14, 3000 Celje
Tel.: 03/428 45 04
Fax: 03/428-45-20
Email: pe-celje@zav-mb.si
Manager: Florjan Lorger
Nazorjeva ul. 1, 4000 Kranj
Tel.: 04/281 80 10
Fax: 04/281 80 20
Email: pe-kranj@zav-mb.si
Manager: Lea Jerič
BU NOVA GORICA
BU KOPER
Delpinova ul. 7/a, 5000 Nova Gorica
Tel.: 05/335 90 00
Fax: 05/335 90 15
E-mail: pe-nova-gorica@zav-mb.si
Manager: Stanislav Rijavec
Cesta Zore Perello-Godina 2,
6000 Koper, p.p. 223
Tel.: 05/611 77 80
Fax: 05/639 36 85
E-mail: pe-koper@zav-mb.si
Manager: Silvana Simić
BU SLOVENJ GRADEC
BU NOVO MESTO
Francetova cesta 7, 2380 Slovenj Gradec
Tel.: 02/881 27 00
Fax: 02/881 27 37
Email: pe-slovenj-gradec@zav-mb.si
Manager: Peter Slemenik
Zwittrova 1, 8000 Novo mesto
Tel.: 07/332 53 30
Fax: 07/332 53 31
Email: pe-novo-mesto@zav-mb.si
Manager: Jože Klobčar
BU LJUTOMER
BU MURSKA SOBOTA
Prešernova 7, 9240 Ljutomer
Tel.: 02/584 96 70
Fax: 02/584 12 42
Email: pe-ljutomer@zav-mb.si
Manager: Boris Lebar
Bakovska 2, 9000 Murska Sobota
Tel.: 02/535 12 46
Fax: 02/535 12 47
Email: pe-murska-sobota@zav-mb.si
Manager: Jožef Benkovič
16
THE MAP OF BUSINESS UNITS, REPRESENTATIVE OFFICES AND AGENCIES
17
MAIN ACTIVITIES AND INSURANCE FORMS
ZM underwrites insurances, executes insurance contracts, and also performs other jobs directly
related to the insurance business.
The company is a universal (composite) insurance and offers a wide range of different insurances in
the group of property in life insurance. The company does not underwrite supplementary health
insurance and supplementary pension scheme.
Schematic overview of insurance classes the company underwrites
PROPERTY
INSURANCE
• Accident insurance
• Land motor vehicles insurance
• Aviation insurance
• Ships insurance
• Goods in transit insurance
• Fire and other damage
• Other indemnity insurance
• Liability insurance for motor vehicles
• Liabilitv insurance for aircraft
• Liabilitv insurance for ships
• General liabilitv insurance
• Credit insurance
• Suretyship insurance
• Pecuniary insurance
• Legal expense insurance
• Assistance
LIFE INSURANCE
• Life insurance that comprises mosth/ endowment life
insurance, term life insurance, insurance on
survivalto a stipulated age oron earlier death, annuitv
insurance, return-of-premiumterm life insurance
UNIT-LINKED LIFE
INSURANCE
• Life insurance linked to investment fund units or longterm business fund units
The company underwrites also supplementary insurances that comprise mostly disability insurance
due to an accident or serious illness, accidental death insurance and injury insurance.
18
EVENTS THAT MARKED 2012
January
A new, independent Claims Processing Sector was established, which symbolizes our recognition of
its importance, and guarantees a continuous and systematic development of this field. Constant
adaptation to the market situation and needs of customers as well as introducing new technologies is
what will separate our company apart from the competition. . In the field of claims processing we
pursue the goal of having a reputation as an insurance company whose distinguishing mark is a
professional, quick, high-quality and customer satisfaction-oriented processing of claims by applying
state-of-the-art technology and modern approach.
th
ZM remains faithful to tradition. In 2012 we were again the main sponsor of the 48 “Zlata lisica”
FIS World Cup competition in alpine skiing for women.
On 9 January 2012, the Supervisory Board of ZM accepted the Business Policy and Financial Plan of
ZM for 2012. The accepted Business Policy and the Financial Plan for 2012 bring a host of new
events, projects and activities, as well as adaptations and changes – all with the goal of satisfying the
high demands and expectations of our key business partners (owners, the insured as well as the
broader social environment in which we operate). We remain focused on quality, high-quality products,
good relations and communication.
In the beginning of January we launched the OPA property insurance with renewed insurance terms
for insuring houses, strata-title units and apartment equipment.
February
On 3 February, the Dnevnik daily published a list of finalists competing for the title of top employer in
Slovenia – 2011 “Zlata nit” (Golden Thread) in the category large companies; ZM was one of the
finalists.
March
Danilo Zorko became the new Chairman of ZM’s Trade Union Organisation.
April
At its meeting held on 24 April, the Supervisory Board accepted and endorsed the consolidated
Annual Report of ZM and the consolidated Annual Report of the ZM Group, as well as familiarised
itself with 2011 Letter to the Management prepared by the audit firm Ernst & Young d.o.o. At the same
meeting the Supervisory Board also familiarised itself with the report of Internal Audit Service for 2011
and accepted and confirmed the Annual Program of the Internal Audit Service for 2012.
May
Matjaž Kovačič, Chairman of the Supervisory Board of ZM, resigned from the position of Chairman
and Member of the Supervisory Board on 28 May; the decision came into effect the day when the new
Member of the Supervisory Board was appointed and the new Supervisory Board was constituted.
Manja Skernišak, Member of the Supervisory Board of ZM, resigned from the position of member of
the Supervisory Board on 28 May; the decision came into effect the day when the new member of the
Supervisory Board was named and the new Supervisory Board was constituted.
ZM began using its new corporate identity and designed a new marketing strategy.
June
Thunderstorms with strong hail destroyed farmlands, causing about half a million of damage to
vehicles and property insured at ZM.
19
ZM signed a treaty on general sponsorship of Folkart, the oldest and the first event of the Lent
Festival.
July
On 6 July, the composition of the Supervisory Board of ZM changed. The new members of the
Supervisory Board, replacing the two members who resigned in May, became Aleš Hauc and Miha
Šlamberger with a four-year term as representatives of shareholders. At the same time Aleš Hauc was
appointed Chairman of the Supervisory Board of ZM for a period of four years.
On 12 July, Miha Šlamberger and Tatjana Skaza were appointed members of the Audit Committee of
the Supervisory Board of ZM. This act terminated the membership of Manja Skernišak and Nataša
Ziherl.
ZM as the first in Slovenia offered insurance for bicycles and cyclists.
A new, renewed Collective Agreement came into force for employees.
ZM renovated the premises of its business unit in Koper and the representative office in Izola.
August
Nova KBM, 50.99-percent owner of ZM, started the procedure for selling its share in ZM on 17 August.
The share sale was based on the decision of the Assembly meeting of Nova KBM held in June, where
shareholders instructed the management of the bank to initiate the activities for selling non-key assets
in Nova KBM Group, a part of which is ZM according to bank’s definition.
September
On 1 September we introduced a novelty in the field of property insurance for OPA!, KPZ and PPZ
policies and children's accident insurance. An insured may decide to conclude a multi-year policy,
which means that until insurance has expired, the policy is concluded with the same insurance
elements and the same risks under the same conditions that applied at the time the insurance was
concluded.
New clients who concluded long-term property insurance with personal and legal assistance and
assistance at home (OPA!) between September and December 2012 were offered special benefits at
the conclusion of said insurance.
ZM opened new offices in Tolmin.
October
On 10 October, Nova KBM invited three bidders to submit non-binding offers for the purchase of Nova
KBM’s share in ZM.
On 22 October the Shareholders’ Meeting of ZM took place, where Deloitte Revizija d. o. o. was
appointed as the auditor.
November
ZM entered into an agreement on business cooperation with Ӧsterreichische Hagelversicherung in the
field of agricultural insurance. On the basis of this co-operation ZM will, starting on 1 January 2013,
offer a new way of concluding crop and fruit insurance to the Slovenian market, while at the same time
offering the fastest service to agricultural insurance policy holders if a loss occurs in Europe.
Slovenia was affected by terrible flooding in which ZM’s policy holders suffered great property
damage.
20
th
At its 28 meeting held on 29 November, the Supervisory Board appointed a new Member of the
Supervisory Board replacing Edi Kosi as employee representative, on the basis of the finding of the
Workers Council from 15 November 2012. Aleš Perko was appointed for a 4-year term starting on 1
January 2013.
December
On 11 December, Nova KBM d. d., Pozavarovalnica Sava d. d. and the Slovenska odškodninska
družba d. d. (Slovenian Compensation Company) signed a purchase agreement for the 50.99-percent
stake of the bank in ZM. The agreement is conditional on the cumulative fulfillment of the following
suspensive conditions:
o Acquisition of all necessary permits (Insurance Supervision Agency and the Office for Protection of
Competition) and
o Acquisition of the consent of the Slovenian Restitution Fund for the acquisition of shares
representing more than 5 percent of total voting rights of the insurance company, the consent for
the sale or disposal of all shares of the insurance company which the Slovenian Restitution Fund
will obtain from Nova Kreditna banka Maribor d. d., and the consent to the decision proposal of the
Assembly of Pozavarovalnica Sava d. d., which was convened on 29 November 2012 and refers to
the increase in share capital.
A Call Center used for communication with customers began operating in ZM.
ZM launched a renewed ZM PRIZMA Riziko life insurance and supplementary accident insurance for
children, which can be linked to ZM’s life insurance.
December is the month when ZM pays particular attention to its mission of being a socially responsible
organization. So, once again we donated some of our assets, which would otherwise be spent on
business gifts, to Varna hiša Maribor (Safe House).
21
BUSINESS REPORT
Company name:
Zavarovalnica Maribor, delniška zavarovalna ZM
Short name:
Registration date:
26 December 1990,
Tax number:
44814631
5063400
Classification by Activity:
62.120 - other insurances
Zavarovalnica Maribor d.d. Business Report
22
CONTENTS OF BUSINESS REPORT
GROWTH AND DEVELOPMENT OF THE COMPANY FROM 2008 TO 2012 ............................... 24
COMPANY'S DEVELOPMENT STRATEGY.................................................................................. 30
HISTORY AND DEVELOPMENT .................................................................................................. 32
OWNERSHIP STRUCTURE ......................................................................................................... 34
BUSINESS ENVIRONMENT AND INSURANCE BUSINESS ......................................................... 35
BUSINESS PERFORMANCE REPORT FOR 2012 ....................................................................... 39
MARKET SHARE.......................................................................................................................... 51
OUTLINE OF THE MORE IMPORTANT INSURANCE CLASSES ................................................. 52
RISK MANAGEMENT ................................................................................................................... 64
SOCIAL RESPONSIBILITY ........................................................................................................... 66
RELATIONSHIP WITH THE LOCAL ENVIRONMENT ................................................................... 69
COMMUNICATION WITH TARGET PUBLIC................................................................................. 71
EVENTS AFTER THE BALANCE SHEET DATE ........................................................................... 73
23
GROWTH AND DEVELOPMENT OF THE COMPANY FROM 2008 TO 2012
Growth and development of the company according to the selected business indicators
2012
In percent
2011
2010
4
2009
2008
Gross loss ratio
56.15
53.19
58.30
71.50
75.80
Gross incurred loss ratio
66.46
61.07
63.30
78.70
85.00
Net loss ratio
54.83
50.90
56.30
63.10
55.90
Net incurred loss ratio
64.36
61.77
63.80
73.60
64.40
Return on average assets prior to taxation (ROA)
0.94
1.96
2.01
-0.09
0.97
Return on average assets after taxation (ROA)
0.97
1.41
1.50
-0.08
0.45
Return on average equity prior to taxation (ROE)
8.05
17.70
19.60
-0.96
9.73
Return on average equity after taxation (ROE)
8.27
12.76
14.60
-0.91
4.50
COMPANY ASSETS FROM 2008 TO 2012
On the last day of the reporting period5 the financial assets of the company amounted to 830,362
thousand euros (2011: 760,990 thousand euros). Relative to the previous reporting period the financial
assets increased by 69,372 thousand euros or 9,1 percent.
Structure of assets and their share in total assets
In EUR ,000
2008
Share
in %
2009
Share
in %
2010
Share
in %
2011
Investments*
422,027
66.47
442,953
65.06
483,199
65.83
511,142
41,917
6.60
71,975
10.57
92,244
12.57
68,525
10.79
66,023
9.70
62,863
Other assets
102,472
16.14
99,883
14.67
TOTAL ASSETS
634,940
100
680,833
100
Assets insured
with investment risk
transferred to reinsurers
Share
in %
2012
Share
in %
67.3
529,562
63.78
107,046
14.1
121,876
14.68
8.56
60,428
7.9
66,277
7.98
95,736
13.04
82,375
10.7
112,647
13.57
734,042
100
760,989
100
830,362
100
*financial investments with investment property and investment into the affiliated companies
Detailed review of the business operations success with indicators is attached to the company’s business report.
The reporting period of the Company represents the operating period from 1 January 2011 until 31 December 2012. The
previous reporting period of the Company represents the operating period from 1 January until 31 December 2011.
4
5
24
Asset growth in the period between 2008 and 2012
ASSETS 2008 - 2012
900.000
112.647
82.375
95.736
600.000
62.863
102.472
in EUR ,000
121.876
107.046
66.023
68.525
66.277
60.428
99.883
92.244
71.975
41.917
300.000
422.027
442.953
2008
2009
0
483.199
511.142
529.562
2010
2011
2012
Investments
Assets o f the in sured persons with un it-linked life insurance
Technical p rovisions transferred to reinsurers
Other assets
EQUITY AND LIABILITIES IN THE PERIOD BETWEEN 2008–2012
Structure of liabilities and their share in total asset resources
In EUR ,000
Equity
Gross technical
provisions
Gross technical
provisions for
unit-linked life
insurance
Other liabilities
TOTAL
2007
Share
in %
2008
Share
in %
2009
Share
in %
2010
Share
in %
2011
Share
in %
2012
Share
in %
51,123
8.47
51,378
8.09
67,314
9.89
77,867
10.61
87,540
11.50
99,109
11.94
458,146
75.88
464,369
73.14
488,861
71.80
500,631
68.20
520,422
68.39
559,003
67.32
34,770
5.76
46,944
7.39
70,500
10.35
89,803
12.23
101,806
13.38
125,132
15.07
59,775
9.90
72,249
11.38
54,159
7.95
65,741
8.96
51,221
6.73
47,117
5.67
603,814
100
634,940
100
680,833
100
734,042
100
760,989
100
830,362
100
Equity as well as other company assets have increased during the reporting period. Equity increased
by 13.2 percent and amounted to 99,109 thousand euros on the last reporting day. Company's equity
increased by 92.9 percent during the monitored period (2008–2012) Equity growth is a result of
successful company operations especially during the last two reporting periods and two capital
increases realized in 2009 and 2011.
25
Structure of assets between 2008 and 2012
in EUR ,000
900.000
600.000
102.472
99.883
95.736
62.863
82.375
60.428
107.046
112.647
66.277
121.876
66.023
71.975
92.244
422.027
442.953
483.199
511.142
529.562
2008
2009
2010
2011
2012
68.525
41.917
300.000
0
Other assets
Technical provisions transferred to reinsurers
Assets of the insured persons with unit-linked life insurance
Investments
Company liability increased by 8.6 percent and amounted to 731,246 thousand euros on the last
reporting day. As in all the previous periods, the highest share of liabilities appertains to the estimated
future liability of the company towards the insured persons and/or the technical provisions. In total, the
technical provisions have increased during the reporting period by 61,907 thousand euros or by 9.9
percent.
Structure of liabilities between 2008 and 2012
840.000
47.117
51.221
65.741
54.159
630.000
72.249
125.132
101.806
89.803
70.500
in EUR ,000
46.944
420.000
559.003
464.369
488.861
500.631
520.422
210.000
0
51.378
67.314
77.867
87.540
99.109
2008
2009
2010
2011
2012
Equity
Gross technical provisions
Gross technical provisions for unit-linked life insurance
naložbenim tveganjem
Other Liabilities
26
COMPANY REVENUE
Company revenue from 2008 to 2012
2008
In EUR ,000
Revenue
Change
compared
to the
previous
year
228,963
-0.64%
Change
compared
to the
previous
year
2009
244,231
6.67%
2010
Change
compared
to the
previous
year
247,144
1.19%
Change
compared
to the
previous
year
2011
248,712
0.63%
2012
Change
compared
to the
previous
year
263,316
5.87%
ZM generates more than 80 percent of its revenue from insurance premiums, which have been
increasing every year in spite of immense market pressure for price reduction and fierce competition.
Individual items of revenue from insurance premiums in the period between 2008 and 2012
In EUR ,000
2008
2009
2010
2011
2012
251,845
266,041
259,599
263,244
263,910
Charged co- and reinsurers'share
60,242
61,879
55,261
51,906
45,491
Modification of unearned premium reserve
-3,051
-1,939
963
-1,036
916
188,551
202,222
205,301
210,302
219,335
Net income from insurance premiums
Movement of gross and net revenue from insurance premium from 2008 to 2012
280.000
240.000
v tisoč EUR
200.000
160.000
120.000
80.000
40.000
0
-40.000
2008
2009
2010
2011
2012
Charged co- and reinsurers' share
Modification of unearned premium
27
COMPANY CHARGES
Company charges from 2008 to 2012
Compare
d to the
prevoius
year
In EUR ,000
2008
Company
charges
222,93
2
-0.66%
Compare
d to the
prevoius
year
2009
244,81
8
9.82%
Compare
d to the
prevoius
year
2010
232,91
8
Compare
d to the
prevoius
year
2011
234,07
3
-4.86%
Compare
d to the
prevoius
year
2012
0.50%
255,80
2
9.28%
Number of claims form a significant part of total charges. Net charges for claims thus represent 55.2
percent of total expenses.
Individual elements of claims incurred in the 2008–2012 period
2008
In EUR ,000
Charged gross losses
Charged co- and reinsurers share in claims
Charge in claims reserve
Net charges for claims
2009
2010
2011
2012
190,871
190,212
151,283
140,022
148,179
71,149
56,465
31,751
27,069
24,783
6,617
19,862
15,843
22,337
21,415
121,437
148,789
130,916
129,903
141,164
Movement of gross and net revenue from insurance premium from 2008 to 2012
200.000
in EUR ,000
160.000
120.000
80.000
40.000
0
2008
2009
2010
2011
2012
Charged co- and reinsurers' share in claims
Change in claim s reserve
Net charges for claim s
PROFIT OR LOSS
Following the year 2009 when ZM’s operating result ended with a loss on account of disastrous
damages, ZM managed to generate profit in each subsequent reporting period.
28
Changes in the net profit or loss between 2008 and 2012
12.000
10.000
8.000
in EUR ,000
6.000
10.595
10.557
4.000
7.717
2.000
2.792
0
-555
-2.000
2008
2009
2010
2011
2012
EMPLOYEES
ZM employees realise its mission through knowledge, professional approach, responsibility and
reliability.
Since 2008, the number of employees has decreased by 28. As at the last day of the reporting period,
ZM had a total of 881 employees.
Employee productivity, measured as relation between insurance premium and average number of
employees, calculated based on the carried out working hours* is—with an exception of 2010—
increasing.
340.000
317.815
311.505
320.000
300.000
304.792
300.430
288.858
280.000
in EUR
264.135
260.000
248.857
231.678
240.000
220.000
237.591
216.263
200.000
180.000
2008
2009
gross premium/average number of employees*
2010
2011
2012
net premium revenue/average number of employees*
29
COMPANY'S DEVELOPMENT STRATEGY
The noble idea that leads our work is to help people in need which is also represented in our slogan:
LIFE GOES ON WITH ZM BY YOUR SIDE
VISION, MISSION, VALUES
MISSION
To be successful in all areas of operations
VALUES
Honesty
Competency
Success
Satisfaction
Responsibility
VISION
To become a Slovenian insurance
company with the highest quality
of services
30
STRATEGIC GUIDELINES
o
o
o
o
o
o
o
o
o
o
o
o
o
To focus on property and life insurances;
To implement an effective risk management system;
To offer competitive and high-quality insurance services;
To focus on profitable services;
To achieve and maintain organic growth;
To increase the current market share, both in the area of property insurance and life
insurance, without exposing the technical result at risk;
To implement customer segmentation;
To offer a unique customer service in the underwriting stage as well as in the stage of solving
claims for damages;
To be the first or second in target municipalities;
To develop alternative sales channels;
To promote entrepreneurship and to properly motivate the staff;
To optimize business processes;
To act on the principles of business excellence.
We prepared a new marketing strategy in 2012 in which we redefined our market position and defined
the ZM trademark and the products we market. The renewed marketing strategy brings changes both
in the area of (marketing) communication and the development of new insurance services.
The corporate design goes hand in hand with the new marketing strategy. In 2012, we prepared a ZM
corporate design manual. The “new” corporate design reflects our updated marketing strategy, which
is shown also in refreshed colours and layout. The key advantage of the new corporate design is the
clearly defined rules for using the ZM logo.
CHALLENGES FOR 2013
In 2012, ZM managed to achieve its performance goals6. In spite of the current economic situation
and unfavourable economic forecasts for 2013, ZM’s goals remain optimistic also for 2013. By setting
up a comprehensive risk management system and making best use of business opportunities, ZM will
pursue the following goals in 2013:
o
o
o
o
o
o
o
o
o
o
99.4 percent of gross premium in comparison with the previous year, and to keep its market
share;
To recruit new brokers in accordance with detected market opportunities;
The gross claims factor for property insurance (excluding disastrous events) totalling 64.7
percent;
To further optimize business processes;
27.1 percent share of operating cost in the gross premium;
To decrease insurance risks by applying a proper reinsurance programme;
To maintain a sufficient level of capital adequacy;
To ensure harmony between technical provisions and investments;
To ensure safety, liquidity and return on a portfolio in the area of investment management;
To generate ROE in the amount of 12.2 percent.
6
A comparison between the realised and planned values of basic balance sheet categories is presented in the
part of the Business Report, which describes the financial position and result of ZM.
31
HISTORY AND DEVELOPMENT
The history of ZM goes back to the first half of the nineteenth century. The most important milestones
are:
1833 The city 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.
Time prior to First World War: Head offices of seventeen insurance companies from Vienna,
Trieste, Graz and London opened in Maribor, most of which still operate as agencies in Maribor.
1927 The insurance company 'Ljudska samopomoč' [People's Self-Care] was established in
Maribor. Its objective was to help relatives cover the expenses of medical treatments or funeral
services. In the first year of its existence the company had already 10,000) insured, and after six
years their numbers tripled.
1937 'Ljudska samopomoč' also started a loan cooperative 'Ljudska štednja'. Excellent business
results led to the construction of a large building located opposite the railway station in Maribor
[currently Partizanska c. 47), and, at the same time, it 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 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' were, due to the
German occupation, transferred to the Südmark insurance company in Graz, Austria.
1945 Based on 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 City, and DOZ -Maribor Suburbs.
1962 'Skupna zavarovalnica za okraj Maribor' (a joint insurance company for the Maribor district]
was established due to the restructuring of 'Državni zavarovalni zavod' which covered the then
existing Maribor District.
1968 After becoming independent, the insurance company renamed to 'Zavarovalnica Maribor'
[Maribor Insurance Company] and immediately established business units in Celje, Ljubljana,
Postojna, Piran and Pula.
End of 1976 Zavarovalnica Sava [Sava Insurance Company] and Zavarovalnica Maribor
[Maribor Insurance Company] merged into a joint insurance company called Zavarovalnica
Triglav [Triglav Insurance Company). On 1 January 1977, Territorial Community Maribor, of the
Triglav Insurance Company, started to operate, but its operations were limited to the Drava
Region and Carinthia
End of 1990 The Maribor regional office became independent and started to operate under its
previous name 'Zavarovalnica Maribor [Maribor lnsurance Company). It only had two larger
business units in Slovenj Gradec and Ptuj.
32
15 December 2000 The shareholders assemblies of ZM and Zavarovalnica Tilia confirmed
the merger of Tilia and ZM. However, due to the legal proceedings filed by 17 m:nor
shareholders the merger was withheld for formal reasons and in 2002 revoked a tthe general
meetings.
2000- 2003 Successful business operations of ZM, growth of operations, the development of
new insurance products and technical provision.
2004: On 22 July 2004, the Insurance Supervision Agency issued a decision [Decision
number: 30200-1147/04-24,15,13] to the company stating that ZM was authorized to perform
insurance operations.
2005: ZM was granted a license 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: The people of Maribor voted ZM as 'The best large company in Maribor', and Drago
Cotar as 'The best manager in Maribor'.
2009: Capital increase. The shareholders increased the share capital by 14.2 million euros.
2010: Due to the circumstances atthe reinsurance market and the technical results of
agricultural insurances the company introduced selective underwriting of agricultural crop
insurance. The risk with such insurances without reinsurance coverage is such that it
jeopardizes the owners' expectations regarding better business results.
2011: The shareholders increase capital of the company in the amount of 12.8 mOion euros.
Two largest shareholders increase their share of the share capital. Together they have 99.6746
percent of voting rights.
2012 – In August 2012, Nova KBM as the largest shareholder of ZM starts selling its share. In
December, Nova KBM signs a contract of sale with Sava Re and Slovenska odškodninska
družba. The contract of sale comprises certain suspensive conditions.
33
OWNERSHIP STRUCTURE
The number of shareholders has remained the same as in the previous reporting year (21
shareholders). The two major owners hold a qualifying ownership share and together they account for
12,413,304 voting rights. Other shareholders of ZM participate in equity only with 0.3264 percent
(40,527 voting rights). ZM has no other securities which would ensure special controlling rights to its
owners.
All shares are entered in the register at the Central Securities Clearing Corporation. ZM’s shares are
not traded on the stock exchange.
Ownership Structure on 31 December 2012
No. of shares:
Share in %
NOVA KBM d.d.
6,350,988
50.9963
Sava Re d.d.
6,062.316
48.6783
40,527
0.3254
12,453.831
100.00
Other shareholders
Total
Source: Central Securities Clearing Corporation, January 2013
Ownership Structure on 31 December 2012
48,6783
NOVA KBM d.d.
0,1633
Sava Re d.d.
0,3334
Other domestic legal
entities
Domestic natural persons
0,1701
50,9963
Each share provides a shareholder with one vote at the meeting. According to the statute of the
company, the meeting is held at least one a year.
During the reporting period, two general meetings were held. At the General Meeting held on 6 July
2012, after discussing the Annual report of the company and the annual report of the group, the
Management and Supervisory Board were discharged for 2011. At the same time the General Meeting
was acquainted with the distributable profit of the company for the year 2011 that amounted to
7,669,806 euros Shareholders decided that a part of the distributable profit be distributed in the form
of dividends (0.32 per share euros). At the General Meeting held on 22 October 2012, the audit firm
Deloitte Revizija d.o.o. was named as external auditor for 2012 financial statements on the proposal of
the Supervisory Board.
34
BUSINESS ENVIRONMENT AND INSURANCE BUSINESS
The company operated in an insecure economic environment that was affected by the increasing
economic crisis and culminated market conditions. The operations of business entities in an
environment as presented hereinafter is a challenge and mastering numerous business risks and
taking advantage of business opportunities represents one of the key competitive factors of business
and sustainable development.
Slovenia’s economic downturn continued and even deepened in the last quarter of 2012. According to
available data, the drop in GDP was again among the highest in the Eurozone. The fall of the
economic activity throughout the year 2012 was marked by the stagnation of exports resulting from
worsening situation in the international environment and by a steep fall in domestic consumption.
Poorer economic results in the last few years are primarily a reflection of accumulated structural
weaknesses and low competitiveness, both in Slovenia and the majority of other EU members.
In addition to cyclic factors, the steep fall in economic activity (which has exceeded the EU average
throughout the crisis) is ultimately a reflection of structural weaknesses of the Slovenian economy
Primarily, insufficient attention paid to measures intended to increase competitiveness in recent years
and economic activity is unlikely to recover due to strongly weakened potential for 20137.
8
Economic climate indicator in Slovenia in the 2000–2012 period
Source: Statistical Office of the Republic of Slovenia, February 2013
Following the adoption of measures to limit the growth of public consumption (decreased salaries and
rationalisation of expenses for goods and services), national consumption decreased for the second
successive year (-1.6 percent). An even bigger fall was recorded in household consumption (-2.9
percent). The expenditure of households started decreasing in the second quarter of 2012, and it only
deepened in the last quarter when it was 5.8 percent down on the previous year. The decreased
expenditure of households is a consequence of lower salaries and downsizing. The adoption of
7
8
Source: Institute of Macroeconomic Analysis and Development, February 2012
Economic climate indicator is a weighted synthetic indicator; it is composed of trust indicators in processing
activities, retail activity, construction sector, service activities and of the consumer trust indicator.
35
measures to limit the public consumption and changes in eligibility criteria also reduced social
transfers. Moreover, the general uncertainty caused changes in consumer behaviour. In 2012, the
investment activity continued to slow down, especially investments in buildings. After the growth in
2011, the smaller production capacity utilization and limited access to financial resources resulted in a
drop in the private sector’s investments in equipment and machinery.
In 2012, the price and cost competitiveness of the economy continued to improve, yet it was still
amongst the lowest in the Eurozone. Due to the decreased euro exchange rate, the improvement of
price competition continued for the third successive year. In Slovenia, it was relatively lower than in
the other countries of the Eurozone primarily because of external commercial trade. Due to the lower
euro exchange rate and a relative labour cost per unit of product, the cost competitiveness improved
in the first nine months of 2012. In spite of the more favourable trend in the last two years, Slovenia
has remained in the group of the Eurozone and EU members with substantially decreased cost
competitiveness in this time of the crisis; due to its significant downturn in 2008 and 2009.
ECONOMIC ENVIRONMENT 9
Gross domestic product (GDP) being the most spread and acknowledged indicator of economic state,
decreased realistically by 2.3 percent in 2012. A drop in the activity was marked by stagnating exports
and a continued downward trend in domestic consumption.
Other national key economic indicators for the reporting period period were:
Inflation, measured by a harmonized index of provisions prices was similar to the inflation of the last
three years, reaching 2.9 percent in 2012 (2011: 2.8 percent). The average annual growth in prices
also equalled 2.9 percent (2011: 2.1 percent).
In 2012, prices of provisions in Slovenia increased above those in the Eurozone. Similar to the rest of
the Eurozone, the higher prices in Slovenia were strongly affected by more expensive energy
products, in particular prices of liquid fuels. The effect of the latter in Slovenia was 0.4 percentage
points above that in the Eurozone due to higher excise duties and keeping a large share of energy
products in the household consumption structure. The increased prices were also significantly affected
by prices of food. In Slovenia, a relatively high growth was observed in prices of unprocessed food,
which contributed 0.7 of a percentage point to inflation (Eurozone: 0.3 percentage points). In addition
to higher prices of energy products and food, inflation in Slovenia was marked also by increased
prices of services, which were slightly higher than in the Eurozone, and in particular a result of unique
factors (an end to school meal subsidies).
Moreover, prices in 2012 increased also by measures adopted in the tax field. The growth in prices of
tobacco products, liquid fuels and alcohol was primarily a result of increased excise duties, which
together contributed 0.9 of a percentage point to last year’s growth in prices, and the increase in
certain environmental charges contributed an additional 0.1 of a percentage point.
The situation in the labour market experienced a downturn in 2012. At the end of 2012, the number of
employed population hit rock bottom after year 2000, and accordingly, the unemployment level was
the highest after 2000. At the end of 2012, the number of registered unemployed people was 118,061,
which is the highest since 1999.
The average monthly net salary in 2012 was by 2.1 percent lower than the average gross salary in the
year 2011 and it amounted to 1,000.21 euros. Average monthly net salary in 2012 was 991.44 euros.
Average monthly salary in 2012 slightly increased nominally compared to 2011 (0.1 percent gross and
0.4 percent net), but realistically (including also the growth in provisions) it decreased (2.4 percent
gross and 2.1 percent net).
In 2012, the number of legal entities and individuals with outstanding matured liabilities continued to
increase. In terms of short-term insolvency, the number of legal entities was similar to that in 2011, but
9
Source: Institute of Macroeconomic Analysis and Development, February 2012
36
their overdue amounts grew almost by a half. A majority of short-term defaulted obligors were from the
sectors of trade and construction (a fifth, respectively). The highest average daily amounts of overdue
liabilities per legal entity was recorded in legal entities from the financial and insurance sectors and the
sectors of trading in real estate and construction. The number of individuals with short-term insolvency
increased during the year and reached a year-on increase by around a third at the end of 2012, similar
to their average daily amounts of overdue liabilities.
Due to insolvency, 12.9 percent more business entities were deleted from the register of companies
than in 2011, and the number of initiated receivership proceedings decreased by a similar percentage.
Short-term insolvency of business entities is usually the first step towards insolvency; hence, last
year’s initiated receivership proceedings involved primarily business entities engaged in trade,
construction and processing activities.
In 2012, there were almost a tenth more compulsory compositions in courts initiated over business
entities compared to the previous year, primarily in processing activities (more than a third of all) or
more specifically in the production of non-metallic mineral products, furniture, foodstuffs and rubber
products and plastic materials. Next in line were business entities engaged in the construction activity,
accounting for more than a quarter of total initiated compulsory compositions in courts.
Households continued to cut down on the volume of loans raised at domestic banks. In December
2012, the volume of loans to households dropped by some 50 million euros. A majority part of the
decrease was again a consequence of deleveraging in the form of consumer loans (approximately 35
million euros). The volume of loans for other purposes also decreased (approximately 15 million
euros), and for the second time also the volume of housing loans. Loans to households were down by
around 190 million euros, whereas they increased by over 170 million euros in 2011. Such a
difference is due to fewer housing loans raised by households. In 2012, domestic non-banking sectors
deleveraged by 1.2 billion euros, i.e. almost 60 percent more than in 2011.
According to available data, the 2011 state budget deficit amounted to 1.1 billion euros (3.1 percent of
the forecast GDP), which is consistent with the state budget rebalancing. Fiscal consolidation
measures helped make it significantly lower than in 2011 (by 420 million euros, i.e. 27.5 percent),
especially as a result of decreased expenses (by 369 million euros), and also slightly higher revenue.
Lower expenses were primarily a result of lower current transfers, which include transfers to
individuals, authorities and subsidies. In terms of revenue, non-tax revenue and inflows from the EU
budget were higher last year, whereas in terms of tax revenue, only revenue from taxes on goods and
services increased.
Forecasts for 2013 are not favourable. The economic activity in the Eurozone is estimated to further
shrink by 0.2 percent.
The current economic environment and the extremely pessimistic and negative forecasts of experts in
relevant areas are not encouraging for companies in the future.
SLOVENIAN INSURANCE MARKET
Insurance market has lately been marked by lower interest rates, internationalization of financial
intervention, wide oscillations on financial markets, tougher competition, appearance of new dangers
and consequently new products and insurance services.
In comparison to the previous reporting period, the gross premium generated by insurance companies
dropped by 55,819 thousand euros, which is 2.7 percent less than the total gross premium charged in
the previous financial year. In terms of property insurance, insurers generated 17,805 thousand euros
of gross premium more than in the previous year. The growth of premium, however, was minimal (0.2
percent). Within the life insurance class, the upturn in the generated gross premium from the previous
year stopped and even experienced a substantial drop. In 2012, insurance companies generated 9.2
percent less of gross life premium, dropping below the five-year average.
37
Gross premium income of insurance companies at the Slovenian insurance market from 2008 until
2012
Property insurance
In EUR ,000
Charged gross
premium
Life insurance
Yearly
premium
growth (in %)
Charged
gross
premium
Total
Yearly
premium
growth (in %)
Charged
gross
premium
Yearly
premium
growth (in %)
2008
2009
2010
2011
1,376,307
1,442,834
1,437,453
1,454,184
7.1%
4.8%
-0.4%
1.2%
642,653
630,089
655,865
638,060
5.5%
-2.0%
4.1%
-2.7%
2,018,960
2,072,923
2,093,318
2,092,244
6.6%
2.7%
1.0%
-0.1%
2012
1,457,077
0.2%
579,348
-9.2%
2,036,425
-2.7%
Source: Slovenian Insurance Association, February 2012
Domestic insurance business indicators from 2008 to 2012
2008
2009
Insurance market penetration
0.0054
0.0059
Insurance density**
1.0043
1.0232
*insurance market penetration = charged gross premium/GDP
**insurance density = charged gross premium/number of citizens
2010
0.0058
1.0218
2011
2012
0.0059
1.0183
0.0057
0.9948
The concentration level on the Slovenian insurance market is quite high. Four insurance companies,
that hold market shares higher than 10 percent, are in command of 71.2 percent of the insurance
market. Zavarovalnica Triglav d.d. is the leading insurance company. After its second place last year,
during the reporting period the company did not succeed in retaining its position (more information on
company’s market share follows in a special chapter later in the document) and was ranked fourth at
the end of the year.
Slovenian insurance market is among the smaller markets in Europe, whereas the biggest European
insurance market represents the market of Great Britain.
LEGAL FRAME OF INSURANCE ACTIVITIES
Legal frame of insurance operations is defined by the Companies Act, the Code of Obligations, the
International Financial Reporting Standards, Slovene statistic standards and special legal acts.
Basic specialized system act that covers all issues regarding the status, legal position and operations
of an insurance company is the Insurance Act.
The insurance legislation will go through some major changes in the following years. The Insurance
Act needs to be brought in line with the Directive of the European Parliament and of the Council
(Directive 2009/138/ES) on the taking-up and pursuit of the business of Insurance and Reinsurance Solvency II. The Directive and its incorporation into practice represent one of the main challenges for
the European insurance companies in the following periods.
The approaching new Insurance Act, major changes in the field of business risk management and
calculation of capital requirements and completely remodeled International Financial Reporting
Standard that will cover accounting of insurance contracts are the fields that will influence the
operations and reports of the company in the following reporting periods with their modified regulations
and new requirements.
38
BUSINESS PERFORMANCE REPORT FOR 2012
The financial position and the financial result of the company in the reporting period are represented
through the financial state account item (balance sheet) and the profit and loss account item
respectively. The values in individual categories represented by the company indicate that the
company successfully managed the tough economic situation and the pressure of competitive
insurance companies.
FINANCIAL POSITION
The company's balance sheet total amounts to 830,362 thousand euros (2011: 760,989 thousand
euros) and has increased by 9.1 percent (2011: 3.7 percent) during the reporting period. The balance
sheet total of the property insurance segment increased during the reporting period relative to the
previous reporting period by 7.0 percent (2011: 4.7 percent). The balance sheet total of the life
insurance segment increased by 11.4 percent (2011: 2.6 percent).
Structural analysis of company's assets
In EUR ,000
on 31.12.2012
Intangible Assets
Tangible Capital Assets
TOTAL ASSETS
Share in %
0.7
6,809
0.9
14,231
1.7
15,245
2.0
487
0.1
546
0.1
529,075
63.7
510,596
67.1
121,876
14.7
107,046
14.1
66,277
8.0
60,428
7.9
49,550
6.0
53,494
7.0
6,900
0.8
6,471
0.9
36,108
4.3
354
0.0
830,362
100.0
760,989
100.0
Other assets
Cash and Cash Equivalents
on 31.12.2011
5,857
Investment Property
Investments
Assets of the insured persons with
unit-linked life insurance
Sum of technical provisions
Receivables
Share in %
The most significant item of assets is financial investments10, of which value represents as much as
78.5 percent (2011: 81.2 percent) of total asset value. Financial investments referring to property
insurance and those referring to classic life insurance recorded a slightly lower annual growth in the
reporting period compared to the previous year, with an increase of 3.6 percent (2011: 5.8 percent).
Similarly, assets of insured persons with unit-linked life insurance grew less than the year before
(2012: 13.9 percent compared to 2011: 16.1 percent). Most of these assets are the insured persons’
investments in selected unit-linked funds.
The share of co-insurers and reinsurers in technical provisions increased by 5,849 thousand euros
nominally in the reporting period (2011: -2,435 thousand euros). However, in terms of total assets, this
item remained at the level from the previous reporting period.
Receivables were down by 7.4 percent (2011: -18.6 percent). This is primarily due to higher amounts
from impairments of receivables referring to insurance operations. The rate of impairments was 36.0
percent (at the start of the reporting period it was 26.0 percent), while almost a third of impairments
refers to receivables due from companies and individuals in bankruptcy. The amount of receivables
referring to insurance operations accounts for 76.2 percent of total receivables (2011: 76.4 percent). A
higher amount of impairments of receivables is a result of a significant increase in outstanding
receivables, which are more than three years overdue. The increase in the business sector is 119.0
percent, and 9.0 percent in the private sector. Despite the current collection and legal treatment of
10
Financial investments = investment property + investment into affiliated companies + financial
investment + assets of the insured persons assuming the investment risk.
39
such obligors, it is becoming clear that even the procedures for collections, which have already been
won, are not being enforced due to obligors’ zero assets.
The value of intangible assets of the company is lower by 14.0 percent (2011: -31,9 percent) The
reason is in the decrease of deferred expenses of life insurance acquisition, stated among the
intangible assets. During the reporting period, their value decreased by 17.1 percent (2011: -33,8
percent). On the last day of the reporting period, the balance sheet value of deferred expenses of life
insurance acquisition amounts to 5,260 thousand euros (2011: 6,344 thousand euros)
Other asset categories (cash and cash equivalents, other assets, other receivables and active
accruals) kept similar par value.
Structural analysis of company's assets
In EUR ,000
Equity
Subordinate liabilities
on 31.12.2012
Share in %
on 31.12.2011
Share in %
99,109
11.9
87,540
11.5
7,000
0.8
7,000
0.9
559,003
67.3
520,422
68.4
Technical provisions - unit-linked life insurance
125,132
15.1
101,806
13.4
5,191
0.6
4,851
0.6
Other reservations
Deferred tax liabilities
0
0.0
0
0.0
Business liabilities
19,168
2.3
23,322
3.1
Other liabilities
15,759
1.9
16,048
2.1
830,362
100.0
760,989
100.0
SOURCES OF ASSETS
During the reporting period the company increased its equity by 13.2 percent (2011: 12,4 percent). Its
nominal growth is 11,570 thousand euros (2011: 9,672 thousand euros). The reasons of equity
increase in the reporting period are due to particularly good operations – a positive operating result,
and the growth of revaluation surplus from available-for-sale financial investments.
Revaluation surplus increased by 8,797 thousand euros in 2012 (2011: -1,868 thousand euros).
Revaluation surplus accounts for 0.7 percent of equity (2011: -0.02 percent).
Legal reserves reached the upper limit (20.0 percent of the share capital). ZM formed provisions for
unused holiday leave, recognising them in retained profit in the amount of 959 thousand euros.
In accordance with the adopted methodology for the formation of reserves for risk equalisation
(equalisation reserves for credit insurance) and pursuant to the Insurance Act, ZM decreased its risk
equalisation reserves at the end of the reporting period. The derecognition amounted to 357 thousand
euros. In compliance with the law, derecognition is recognised to net profit or loss for the period
through the statement of changes in equity.
ZM uses technical provisions to ensure long-term safety of insured persons. These provisions are the
most important item of the liabilities in the balance sheet. To calculate technical provisions, ZM applies
methods which ensured the fulfilment of long-term liabilities to insured persons and their short-term
claims, also when amounts exceeding ten million euros had to be paid out in a very short time after
the disastrous damages occurred.
Technical provisions accounted for 82.4 percent of asset resources (2011: 81.8 percent) and grew by
9.9 percent in the reporting period (2011: 5.4 percent).
On the last day of the reporting period the company accounted 559,003 thousand euros of technical
provisions on property and classical life insurances (2011: 520,422 thousand euros). Their extent
increased by 7.4 percent (2011: 3,95 percent) relative to the previous period In the property insurance
40
group the technical provisions increased 10.1 percent (2011: 6.8 percent), and in the life insurance
group by 4.5 percent (2011: 1,0 percent).
The technical provisions for unit-linked life insurance risk are increasing their share in the assets of the
company. During the reporting period this share increased by 1.7 percentage point or 23,326
thousand euros.The technical provisions for unit-linked life insurance risk increased by 15.1 percent
(2011: 13.4 percent) and amount to 125,132 thousand euros (2011: 101,806 thousand euros).
Horizontal structure of assets* and their sources* on 31 Dec 2012
600.000
capital assets/equity
529.562
in EUR, 000
492.726
500.000
receivables/liabilities
400.000
investments/net technical
provisions
300.000
other assets/other liabilities
200.000
121.876
100.000
49.979
20.088
99.109
42.579
19.168
125.132
27.950
unit-linked insurance
(investments/net technical
provisions)
0
ASSETS
ASSET SOURCES
As at the end of 2012, ZM was net creditor to reinsurers in the amount of 1,403 thousand euros (2011:
566 thousand euros); flood damage claims account for a significant part. Liabilities to insured persons
and brokers represent 1.4 percent of total liabilities, whereas other liabilities account for only 1.9
percent.
The financial status within the group of property insurance depends mostly on claims reserve and
such provision depends on oscillation of loss occurrences. Claims reserve has increased by 13,.7
percent (2011: 9.7 percent) during the reporting period.
In the field of life insurance, the financial status largely depends on mathematical reserves, including
the ascribed realized gain of classic life insurance. The mathematical reserves of classic life
insurances increased by 1.8 percent (2011: 2.4 percent) during the reporting period. According to the
current market interest rates, the minimum assured policy yield and realized operating expenses, the
establishment of provision adequacy for meeting the liabilities of insurance contracts for classic life
insurances at their arrival showed that the recognised mathematical provisions can be used to cover
all the liabilities referring to concluded insurance contracts.
Balance item of mathematical reserve for classic life insurance includes the amount of revaluation
reserve that would in case of realization at the financial market go to the insured persons in form of
profit attribution. The latter item was under strong influence of financial market situation. It increased
by 6,402 thousand euros (2011: -5,982 thousand euros)during the reporting period.
Mathematical reserves of unit-linked life insurance follow the trends of mutual fund movements into
which the insured persons invest their paid-in premiums and the company influences the insured
persons only by the fund selection and creation of products offered to the them. The latter increased
by 22.0 percent during the reporting period (2011: 13.2 percent).
41
The company realized most of the planned items in the reporting period. The table shows the
comparison of basic company's financial status items with planned amounts.
Basic categories of company's financial status items
In EUR ,000
on 31.12.2012
PLAN 2012
on 31.12.2011
Index/201
1
Indeks/PLA
N
TOTAL ASSETS
830,362
100.0%
804,814
100.0%
760,989
100%
0
0
Intangible Assets
5,857
0.7%
6,647
0.8%
6,809
0.9%
86.0
88.1
14,231
1.7%
16,596
2.1%
15,245
2.0%
93.3
85.7
Non-current assets for sale
278
0.0%
0
0.0%
0
0.0%
0
0
Deferred tax receivables
429
0.1%
0
0.0%
687
0.1%
62.5
0
Investment Property
487
0.1%
532
0.1%
546
0.1%
89.2
91.6
Fin. investments in group
companies
240
0.0%
190
0.0%
190
0.0%
126.3
126.3
528,835
63.7%
538,664
66.9%
510,406
67.1%
103.6
98.2
121,876
14.7%
119,463
14.8%
107,046
14.1%
113.9
102.0
66,277
8.0%
57,485
7.1%
60,428
7.9%
109.7
115.3
Receivables
49,550
6.0%
58,639
7.3%
53,494
7.0%
92.6
84.5
Other assets
6,194
0.7%
5,754
0.7%
5,784
0.8%
107.1
107.6
36,108
4.3%
844
0.1%
354
0.0%
5286.6
4277.0
760,989
100%
109.1
103.2
Investments
Assets of the insured
Persons with unit-linked life
Sum of technical provisions
EQUITY AND LIABILITY
100.0%
830,362
100.0%
804,814
99,109
11.9%
100,877
12.5%
87,540
11.5%
113.2
98.2
7,000
0.8%
7,000
0.9%
7,000
0.9%
100.0
100.0
559,003
67.3%
532,317
66.1%
520,422
68.4%
107.4
105.0
Assets of the insured
persons with unit-linked life
125,132
15.1%
116,665
14.5%
101,806
13.4%
122.9
107.3
5,191
0.6%
4,640
0.6%
4,851
0.6%
107.0
111.9
0
0.0%
531
0.1%
0
0.0%
-
0.0
19,168
2.3%
30,849
3.8%
23,322
3.1%
82.2
62.1
Other liabilities
15,759
1.9%
11,935
1.5%
16,048
2.1%
98.2
132.0
Equity
Other reservations
In the off-balance sheet record, the company states items of unclaimed recourse claims and items of
provided guarantees and warranties within call for tenders (more details on items are available in the
financial report).
42
INVESTMENTS
The company invests assets arising from technical provisions in a way that it entirely considers all
legislative limitations and forms intern limits for investments into individual investments classes. The
assets of unit-linked life insurance are invested into mutual funds and financial instruments in
accordance with a selection done by the insured persons because with this kind of insurance the
insured persons are the ones that assume the investment risk. The assets of life insurance business
fund, investment property long-term business fund and assets invested into ZM Zajamceni fund are
invested in accordance with legislation and regulations.
11
Financial investments include long-term business fund investments, as well as own fund investments
in the financial statement. Own fund investments represent 5.5 percent of all financial investments
(2011: 2.3 percent).
2012
In EUR ,000
Own funds
DELEŽ
2012
2011
DELEŽ
2011
31,739.9
13,947,3
4.9
2.3
Long-term business fund
228,300.7
231,885.0
35.0
37.5
Business funds of classic life insurance
269,521.5
265,119.7
41.4
42.9
Business funds of unitlinked life insurance
121,875.9
107,045.5
18.7
17.3
Total
651,437.9
617,997.5
100.0
100,0
Sources of investment financing
2011 2,3
37,5
42,9
17,3
Own funds
Long-term business fund
Business funds of classic life insurance
Business funds of unit-linked life insurance
2012
4,9
0
35,0
25
41,4
50
18,7
75
100
11
Financial investments represent financial investments including assets of the insured persons
assuming the investment risk, investment property and investment into affiliated companies.
43
12
Long-term business fund investments
The structure of long-term business fund investments
2012
48,5
24,0
1,8
25,5
0,2
Government securities
Debt securities
Shares and other equity
Deposits
2011
47,91
0
31,83
25
1,28
50
18,77
0,20
75
Loans
100
13
Classic life insurance business fund investments
In 2012, state debt securities accounted for an important share in the investment structure of the life
insurance long-term business fund also in 2012, which remained at the level of the previous reporting
period.
The structure of classic life insurance long-term business fund investments
2011
58,6
22,7
6,5
12,2
Debt securities
2012
58,6
0
25
28,5
50
75
5,9
7,0
Deposits
100
Unit-linked life insurance business fund investments
Unit-linked life insurance business fund investments in 96.1 percent comprise investments of
business funds and other investments, which are chosen by the insured persons under the insurance
terms.
12
Long-term business fund represents the assets of a company assigned for covering of future property insurance liabilities,
with reference to which the company forms technical provisions.
Business fund is a long-term business fund intended for covering future life insurance liabilities.
13
44
Unit-linked life insurance business fund investments comprise investments of three business funds.
Their share in total value of life insurance investments in presented in the table below.
2012
In EUR ,000
Prizma
Share in %
112,098
2011
Share in %
92.0
101,717
8,032
6.6
4,524
4.2
1,746
1.4
805
0.8
100.0
107,046
100.0
ZM Zajamč eni
Hibrid
Total
121,876
95.0
Structure of unit-linked long-term business fund investments
2011 3,7 7,4
81,7
7,2
Debt securities
2012 3,6 10,0
0
86,2
25
50
0,2
75
Deposits
100
45
FINANCIAL RESULTS
The pretty much steady process of achieving the planned operating result during 2012 was stopped by
flood-induced loss events in the last quarter of the year, which significantly affected the year-end
financial result, both through accounted claims and provisions for claims.
In spite of disastrous floods, which devastated a vast part of the Styria region, ZM managed to
generate a net profit of 1,505 thousand euros in the segment of property insurance (2011: 8,936
thousand euros), and the net profit of 6,212 thousand euros in the area of life insurance (2011: 1,621
thousand euros).
Basic categories of ZM’s financial result
01.01. –
31.12.2012
Plan 2012
01.01. –
31.12.2011
Index/2011
219,335,368
217,965,081
210,302,087
104.3
100.6
264,286,090
267,824,733
263,561,785
100.3
98.7
2. Charged premium given in coinsurance and
reinsurance
-45,867,203
-48,079,311
-52,223,711
87.8
95.4
3. Modification of unearned premium reserves
2,513,661
-163,936
-9,655
-26.034
-1.533
4. Modification of unearned premium reserve for
the share given in co- and reinsurance
-1,597,179
-1,616,405
-1,026,332
155.6
98.8
Investment income/charges
23,726,698
19,512,205
18,671,153
127.1
121.6
1,140,969
548,162
1,125,834
101.3
208.1
141,164,085
136,233,325
129,903,266
108.7
103.6
119,748,608
126,109,098
107,566,611
111.3
95.0
1.1. Charged gross amount of claims
144,570,363
153,558,335
134,642,010
107.4
94.1
1.2 co- and reinsurer shares
-24,821,755
-27,449,237
-27,075,399
91.7
90.4
2. Modification of claims reserves
21,415,477
10,124,228
22,336,654
95.9
211.5
in EUR
Insurance
premium
premium
net
income
-
earned
1. Charged gross premium
Other Insurance Income
1. Net claims charges
2.1 Change in gross claims reserve
Index/Plan
28,892,248
8,373,909
20,739,735
139.3
345.0
2.2 modification of claims reserve for co- and
reinsurance share
-7,476,771
1,750,319
1,596,919
-468.2
-427.2
Modification of Other Technical Reservations*
28,830,928
20,967,914
16,915,232
170.4
137.5
1. Modification of other gross technical
provisions
28,830,928
20,967,914
16,915,232
170.4
137.5
75,927
65,691
11,351
668.9
115.6
62,822,291
62,438,611
63,678,007
98.7
100.6
22,178,473
23,168,162
25,226,106
87.9
95.7
1,291,417
0
2,965,618
43.5
0.0
Bonus and Commission Charges
Operating Costs
1. Acquisition costs
1.1 out of which modification of deferred
expense of obtaining insurance
2. General operating costs
50,078,520
49,288,408
48,459,468
103.3
101.6
3. Reinsurance commission and profit
participation
9,434,703
10,017,959
-10,007,568
-94.3
94.2
Other Insurance Income
2,484,843
2,379,532
2,282,720
108.9
104.4
Insurance operations account
8,824,960
15,940,375
17,308,498
51.0
55.4
Other operations revenue
5,194,686
2,447,334
3,862,476
134.5
212.3
Other operations charges
6,505,114
6,870,320
6,531,803
99.6
94.7
7,514,532
11,517,388
14,639,171
51.3
65.2
-202,482
3,267,205
4,082,096
-5.0
-6.2
7,717,014
8,250,183
10,557,075
73.1
93.5
Profit and loss account prior to taxation
Revenue tax
Net income
*the modification includes the modification of liability towards the insured persons with unit-linked life insurance
46
The insurance operations account amounted to 8,825 thousand euros (2011: 17,308 thousand). It was
decreased by other operations revenue and charges by 1,310 thousand euros (2011: - 2,669
thousand). Corporate income tax amounted to 2,248 thousand euros (2011: 4,109 thousand euros).
The formation of deferred tax assets, which refer primarily to the impairment of available-for-sale
investments, resulted in the negative total corporate income tax, which increased the achieved pre-tax
result by 202 thousand euros.
During the reporting period the company made together with the received co-insurance 264,286
thousand euros of gross insurance premium (2011: 263,562 thousand euros). Relative to the previous
reporting period the gross premium is higher by 0.3 percent and slightly below the plan.
The structure of the charged gross premium in
2012
The structure of the charged gross premium in
2011
16,5%
17,6%
12,1%
11,6%
70,8%
71,4%
Property insurance
Property insurance
Life insurance
Life insurance
Unit-linked life insurance
Gross premium generated by business units
120.000
In EUR ,000
100.000
80.000
60.000
40.000
20.000
2012
0
2011
47
During the reporting period the company charged together with the received co-insurance claims
144,570 thousand euros (2011: 134,642 thousand euros) of gross claims. The amount includes
reimbursements referring to claims, recognised in the amount of 3,647 thousand euros (2011: 5,386
thousand euros).
Total gross claims charged (excluding reimbursements) amounted to 148,179 thousand euros in 2012
(2011: 140,022 thousand euros), which is a 5.8 percent growth compared to the previous reporting
year, however they were 6.0 percent below the plan.
The structure of the charged gross claims in
2012
The structure of the charged gross claims in
2011
7,5%
8,3%
17,5%
19,3%
73,2%
74,2%
Property insurance
Property insurance
Life insurance
Life insurance
Gross claims accounted for by business units
70.000
In EUR ,000
60.000
50.000
40.000
30.000
20.000
10.000
2012
2011
0
48
The comprehensive income of the business year that includes all nett profit or loss from repeated
calculation of financial assets available for sale amounts to 16,514 thousand euros (2011: 5,590
thousand euros). Effects of the growth in the value of investments recognised through the
comprehensive income in the amount of 8,796 thousand euros (2011: - 4,967 thousand euros)
increased the net profit for the year.
Careful evaluation of receivables and investments had a significant effect, even bigger than planned,
on the operating result. With regards to investments, we focused mostly on fair value measuring for
the companies, which do not have shares listed on the stock exchange; due to the established actual
increase in risks, we made impairments through profit or loss in the amount of 2.7 million euros – a
majority of this is attributed to Probanka d.d.
When determining the recoverability of receivables due from insured people, we found a significant
increase in outstanding receivables, which are more than three years overdue. The increase in the
business sector is 119.0 percent and 9.0 percent in the private sector. Despite the current collection
and legal treatment of such obligors, it is becoming clear that even the procedures for collections,
which have already been won, are not being enforced due to obligors’ zero assets. For this purpose
we increased the level of write-downs of all receivables, which are more than two years overdue; this
means 1.5 million euros of effect in the operating result.
In the reporting period, ZM formed provisions (short-term accrued and deferred items) for unused
holiday leave, which were not recognised in previous reporting periods. The amount of recognised
short-term accrued and deferred items for unpaid holiday leave is 1.25 million euros, of which 0.96
million euros is recognised in retained earnings from previous years, and the difference in the current
financial result.
49
FINANCIAL RESULT BY INSURANCE CLASSES
Profit or loss realized in the accounting period by an individual insurance class is presented in the
table below.
REVENUE
EXPENSES
In EUR ,000
From insurance operations
INSURANCE CLASS
1
2
FORMATI
ON OF
TECHNIC
AL
PROVISIO
NS
3
OPERATI
NG
EXPENSE
S
4
OTHER
REVENUE /
EXPENSES
TOTAL
GROSS
PROFIT
OF
INSURAN
CE CLASS
5
6 =1-2-34+5
Accident insurance
17,655
9,065
837
6,068
-291
1,394
Land motor insurance
44,429
31,019
184
12,588
-1,482
-844
Aviation insurance
52
-68
-6
25
-27
74
Marine insurance
281
290
-14
67
-28
-89
Cargo transport insurance
1,281
298
-10
547
-39
406
Fire and natural disaster
insurance
11,724
11,148
3,909
7,125
-269
-10,727
Other indemnity insurance
17,869
13,770
487
6,104
232
-2,260
Motor vehicle liability insurance
55,037
31,206
-123
11,923
-1,386
10,644
Aircraft liability insurance
59
13
0
43
-35
-31
Marine liability insurance
195
207
41
49
-3
-105
General liability insurance
8,792
7,447
911
2,935
-128
-2,629
Credit insurance
1,967
-905
-3,018
737
536
5,689
Suretyship insurance
116
201
-32
31
-7
-92
Pecuniary insurance
842
781
3
399
-19
-360
Legal expenses insurance
185
3
0
234
-6
-59
1,652
7
0
814
-35
796
162,133
104,482
3,170
49,687
-2,988
1,805
Life insurance
44,270
30,301
4,259
6,666
190
3,234
59,084
19,211
21,478
15,904
-15
2,476
LIFE INSURANCE
103,353
49,513
25,737
22,570
176
5,710
TOTAL
265,486
153,995
28,907
72,257
-2,812
7,515
Assistance insurance
PROPERTY INSURANCE
50
MARKET SHARE
The company recorded an increase of market share in the reporting period. It raised from 12.4
percent in 2010 and 12.6 percent in 2011 to 13.0 percent. The market share of the company,
calculated based on gross premium, puts the company fourth on the Slovene insurance market.
The market share in the area of property insurance amounts to 12.8 percent (2011:12.9 percent) and
in the area of life insurance to 13.3 percent (2011: 11.8 percent).
Market share trends from 2008 to 2012
16
14
12
in %
10
8
6
4
2
0
2008
2009
2010
Property insurance
2011
Life insurance
2012
Total
Source: Slovenian Insurance association, February 2013
Market share of insurance companies on the Slovene insurance market on 31 Dec 2012
2,3%
1,8%
1,7%
1,1%
1,7%
TRIGLAV
2,5%
VZAJEMNA
4,1%
ADRIATIC SLOVENICA
4,3%
31,7%
ZAVAROVALNICA
MARIBOR
TRIGLAV ZDRAVSTVENA
GENERALI
4,5%
TILIA
SLOVENICA ŽIVLJENJE
13,0%
MERKUR
13,3%
13,2%
NLB VITA
GRAWE
WIENER STADTISCHE
Other insurance companies
Source: Slovenian Insurance Association, February 2013
51
OUTLINE OF THE MORE IMPORTANT INSURANCE CLASSES
The company acts as a composite insurance company and offers a wide range of different insurances.
Basically, the insurances are divided into property and life insurance.
PROPERTY INSURANCE
In 2012, in the area of property insurance the company offered most of the insurance classes from this
group. The company does not take on risks that arise from insurance written in insurance classes of
health insurance, rail vehicle insurance and aircraft and marine liability insurance.
Motor third-party liability insurance: The ZM’s compulsory motor third-party liability insurance (AO)
covers the material and non-material damage caused by the insured person to third parties.
Advantages of ZM’s compulsory motor third-party liability insurance:
o
o
Cash on hand is a service offered to persons injured in traffic accidents. Upon their
presentation of the required medical documents, we transfer the benefit to their current
accounts immediately after the end of their medical treatment. We guarantee that the amount,
which will be transferred in a correct way, equals the sum that would otherwise be claimed by
injured persons through their representatives.
Legal protection of driver license is a service which covers representation in driver license
suspension procedures and in cases of driving bans resulting from road traffic offences or
accidents.
Comprehensive car insurance: the compulsory motor third-party liability insurance, taken out at ZM,
guarantees the coverage of damage which insured persons could cause to others involved in a road
traffic accident; the comprehensive car insurance additionally covers also the repair or reimbursement
of damage on insured person’s car.
Car owners can choose from the following “Moj kasko” comprehensive car insurance
packages:
o
o
o
o
o
Premium comprehensive car insurance – above-standard car insurance,
Super comprehensive car insurance – covers many loss events with deductibles,
Comprehensive car insurance – enables the preparation of a tailor-made package; in case
of a loss event, an insured person co-participates in damage with deductibles,
Basic comprehensive motor insurance – a classical type of full comprehensive insurance
intended for all groups of motor vehicles,
5 plus comprehensive car insurance – insurance for cars, which are 5 to 12 years old (the
period, which has passed from the first-time registration).
AO+ driver car insurance: AO+ driver car insurance is an upgrade to the compulsory motor thirdparty liability insurance taken out at ZM. This type of insurance covers a driver, who causes a road
traffic accident with an insured car if the accident results in injury to the body or death. The ZM’s AO+
insurance covers:
o injury to the body of the driver of insured vehicle,
o death of the driver of insured vehicle.
AXA car assistance: in cooperation with the AXA Assistance insurance company, ZM has prepared
the car assistance programme, which is a supplementary package to the compulsory motor third-party
liability insurance (AO), whereas it is already included in the Premium comprehensive car insurance,
Super comprehensive car insurance and Basic comprehensive car insurance packages.
The AXA car assistance provides free round-the-clock road assistance in the following cases:
o
a road traffic accident,
52
o
o
o
mechanic damage to vehicle,
theft,
bodily injury.
The AXA car assistance is available for the following types of vehicles:
o
o
o
o
personal vehicles,
utility vehicles,
cargo vehicles above 3.5 t,
motorbikes.
Other types of motor insurance
Bikers can take out the motorbike insurance, which brings them several benefits, such as the transfer
of bonus from car insurance, a discount on annual compulsory and on comprehensive motorbike
insurance, and special discounts for members of motor clubs.
Redemption of first claim: ZM offers you a policy to redeem the first claim if you simultaneously take
out the mandatory motor liability insurance and the supplementary AO+ driver car insurance or
comprehensive car insurance. By making such extra payment, you will not lose your bonus in the
event of the first-time road traffic accident caused during the current policy year.
Coverage of costs for new driving test: this type of insurance covers the cost of new driving test, if
the former driver license has terminated due to having been imposed the maximum amount of penalty
points.
OPA! Home insurance: the advantages are:
o
o
o
o
o
o
insurance referring to the new value by omitting the age-induced decrease in the value if a
loss event occurs;
ensuring the safety of home in events of fire, lightning strike, hail or other natural
disasters;
a tailor-made type of package insurance;
legal protection for the entire family, including lawyer fees and legal advice costs in the
private and professional area;
personal assistance: in the event of an accident or major damage on the insured property,
ZM will take care of the insured person by providing various assistance services, including
the coverage of personal accident, medical care, transport to the hospital, etc.;
home assistance, provided by ZM to help eliminate the problems caused by fire, burglary,
flood, storm, hail or spillage of water to the insured building, apartment or home
equipment.
This type of insurance can be taken out for: holiday buildings – all types of residential buildings with
appurtenances (fences, arranged courtyards, pavements, supporting walls, etc.), holiday cottages with
th
appurtenances, auxiliary buildings – garages, sheds, etc., unfinished buildings – 4 construction
phase (with windows, doors and roofing), apartments in three-story or more buildings.
OPA! Home equipment insurance has the following advantages:
o
o
o
o
insurance of home equipment referring to the new value by omitting the age-induced
decrease in value if a loss event occurs;
a tailor-made type of package insurance;
covers personal liability at home and abroad (e.g. you’re travelling abroad; your child is
playing with a ball and breaks a window or while skiing, you or your family member injures
another skier, etc.);
legal protection for the entire family, including lawyer fees and legal advice costs in the
private and professional area;
53
o
o
personal assistance: in the event of an accident or major damage on the insured property,
ZM will take care of the insured person by providing various assistance services including
the coverage of personal accident, medical care, transport to the hospital, etc.;
home assistance, provided by ZM, to help eliminate the problems caused by fire, burglary,
flood, storm, hail or spillage of water to your building, apartment or home equipment.
This type of insurance may be taken out for:
o
o
home equipment, and
personal items used by the insured person and their family members.
ZM is the first in Slovenia to offer bicycle and cyclist insurance. The following types of insurance
may be taken out to insure cyclists and their bikes:
o
o
o
o
o
liability insurance,
comprehensive insurance,
personal accident insurance,
personal assistance, and
road assistance insurance for bicycles and damage resulting from extraordinary, shortterm events that occurred independent of the insured person’s will.
In cooperation with the globally renowned AXA Assistance insurance company, ZM offers:
o
o
o
o
o
expert assistance in events of health and legal issues, lost luggage, transportation
delays, etc.,
the coverage of health care cost abroad,
the organisation of emergency repatriation,
the option of taking out individual or group insurance,
the option of choosing one of the three insurance packages..
Zoja accident insurance is intended for pre-school children, primary and secondary school students
and other college and university students with a valid student status. In the second half of the
reporting period, we introduced a several-years accident insurance for pre-school children, primary
and secondary school students and other students. Parents or insured persons may take out severalyears accident insurance, which benefits them by not having to take out new insurance every year
since the insurance policy is automatically prolonged every policy year.
Zoja accident insurance can also be taken out online on the ZM website.
Other types of ZM accident insurance include: individual personal accident insurance, sports
personal accident insurance, family accident insurance, pensioners individual accident insurance and
group accident insurance.
In addition to the abovementioned types of insurance, ZM offers agricultural and property
insurance; covering buildings, equipment and movable property, crop, stock and animals, as well as
business insurance. The latter includes insurance of business buildings, computers, inventory,
equipment breakdown coverage and business interruption insurance due to fire.
PROPERTY INSURANCE IN NUMBERS
Gross premium charged
In EUR ,000
Gross insurance premium charged
2012
186,918
2011
187,839
change
In EUR ,000
In percentage
-921
-0.5%
54
Shares of individual insurance class in gross
property
insurance
premium
–
2012
5,5
Shares of individual insurance class in gross
property
insurance
premium
–
2011
5,6 2,0
3,9
5,0
6,3
31,9
31,0
9,8
10,1
10,5
14,8
10,8
26,8
28,0
Land motor vehicle owners third-party liability
insurance
Land motor vehicles insurance
Land motor vehicle owners third-party
liability insurance
Fire and other damage
Drugo škodno zavarovanje
Accident insurance
Accident insurance
Other insurance types
Assistance
Gross claims payments
2012
In EUR ,000
Gross claims payments
109,912
Share of insurance type in gross claims 2012
2011
102,530
change
In EUR ,000
In percentage
7,382
7.2%
Share of insurance type in gross claims 2011
4,5 4,2
4,5 4,1
6,6
6,4
33,8
9,2
34,9
7,4
14,2
12,6
28,2
29,4
insurance
insurance
Accident insurance
Accident insurance
55
Accident insurance (including workers compensation)
The accident insurance is according to legislation classified as property insurance, however, it is
generally classified as personal insurance. In case of death or heath problems the accident insurance
covers financial expenses, damages or expense returned in lump-sum payment, installment payment
of agreed compensation, or proceeds due to an injury, damage to health or passenger death.
Gross loss
ratio
Charged gross insurance premium
2012
19,579,260
7,052,095
36,02
445,257
2011
18,910,636
6,741,320
35,65
422,239
103.5
104.6
101.0
105.5
In euros
Index
Number of insurances
Accident insurance represents according to the gross premium income, 10.5 percent of the property
insurance gross premium. An important share in the insurance class are subclasses of car drivers and
owners personal accident insurance with 46.0 percent and accident insurance of people performing
their regular job and beyond with 45.3 percent in gross premium. The gross premium income within
the accident line of business amounts to 19.6 million euros which is 668,6 thousend euros or 3.5
percent more relative to the previous reporting period.
The charged gross claims within the accident line of business amount to 7.1 million euros which is
310,8 thousend euros or 4.6 percent less relative to the previous reporting period. Gross loss ratio in
2012 is 36.0 percent and is lower than in the previous reporting period.
Land motor vehicles insurance covers all claims or losses of land motor vehicles with selfpropulsion
(except rail vehicles).
2012
50,216,633
37,135,847
73.95
188,765
2011
52,563,552
35,781,633
68.07
176,997
95.5
103.8
108.6
106.6
In euros
Index
Gross loss ratio
Land motor vehicles insurance represents according to the gross premium income, 26.9 percent of the
property insurance gross premium. The insurance is underwritten only within the subgroup of land
motor vehicles with self-propulsion (except rail vehicles) within the motor insurance subgroup. The
gross premium income within the land motor vehicles insurance class amounts to 50.2 million euros
which is by 2.3 million euros or 4.5 percent less relative to the previous reporting period.
The charged gross claims within the land motor vehicles insurance class amount to 37.1 million euros
which is by 1.4 million euros or 3.8 percent more relative to the previous reporting period. Gross loss
ratio in 2012 is 73.95 percent and is higher than in the previous reporting period.
Fire and other damage covers property damages caused by fire, explosion, storm, and other natural
occurrences, except storms, nuclear energy, land immersion and slide.
56
in EUR
Gross loss ratio
Number of
insurances
2012
20,111,380
10,139,192
50.42
168,729
2011
11,900,673
7,606,876
63.92
26,385
169.0
133.3
78.9
639.5
Index
Fire and other damage represents 10.8 percent of gross premium within the property insurance
structure Within this line of business the subclasses of fire insurance and insurance of some other
dangers outside industry and trade as well as within industry and trade play an important role as they
represent 95.6 percent of gross premium. Within this line of business the Electricity supply company
fire insurances are also underwritten.
The gross premium income within the Fire and other damage insurance class amounts to 10.1 million
euros which is by 8.2 million euros or 69.0 percent more relative to the previous reporting period.
The gross premium income within the Fire and other damage insurance class amounts to 10.1 million
euros which is by 2.5 milion euros or 33.3 percent more relative to the previous reporting period.
Gross loss ratio in 2012 is 50.42 percent and is lower than in the previous reporting period.
Other indemnity insurance covers property claims for damages resulting from hail, frost or other
reasons.
2012
18,309,811
13,801,273
75.38
77,951
2011
27,857,161
14,509,852
52.09
244,903
65.7
95.1
144.7
31.8
in EUR
Index
Gross loss ratio
Other indemnity insurance represents according to the gross premium income, 9.8 percent of the
property insurance gross premium We underwrite insurance in every subclass except the danger
insurance in the post and telephone traffic, tourist insurance, insurance of movie production and mine
insurance. Within this line of business the household insurance represents the largest share with 35.9
percent of its gross premium The gross premium income within Other indemnity insurance class
amounts to 18.3 million euros which is 9.5 million euros or 34.3 percent less relative to the previous
reporting period.
The charged gross claims within Other indemnity insurance class amount to 13.8 million euros which
is by 708,6 thousend euros or 4.9 percent less relative to the previous reporting period. Gross loss
ratio in 2012 is 75.38 percent and is higher than in the previous reporting period.
Liability insurance for motor vehicles
Liability insurance for motor vehicles covers all liabilities arising from the use of land motor vehicles
with self-propulsion (including the transport liability). The liability insurance is an important insurance
as it offers certain security to participants in traffic.
2012
57,975,232
32,313,805
55.74
478,658
2011
59,858,525
28,932,653
48.34
462,154
96.9
111.7
115.3
103.6
in EUR
Index
Gross loss ratio
57
Liability insurance for motor vehicles represents according to the gross premium income, 31.0 percent
of the property insurance gross premium. The majority of the gross premium, as much as 98.6
percent, is collected within the land motor vehicle owners third-party liability insurance subclass.
The gross premium income within the Liability insurance for motor vehicles class amounts to 58.0
million euros which is by 1.8 million euros or 3.1 percent less relative to the previous reporting period.
The charged gross claims within the Liability insurance for motor vehicles class amount to 32.3 million
Gross loss ratio in 2012 is 55.74 percent and is higher than in the previous reporting period.
General liability insurance is an insurance that covers all other liabilities other than motor vehicle
liability.
2012
10,214,307
4,911,233
48.08
143,571
2011
7,371,138
4,606,553
62.49
10,680
138.6
106.6
76.9
1.344.3
in EUR
Index
Gross loss ratio
General liability insurance represents according to the gross premium income, 5.5 percent of the
property insurance gross premium The most represented subclass of insurance is the general liability
insurance, representing 78.8 percent of this insurance class portfolio. The general liability insurance
class comprises 25 subclasses of insurance. In our insurance company we underwrite 16 subclasses
of insurance.
The gross premium income within the general liability insurance class amounts to 10.2 million euros
which is 2.8 million euros or 38.6 percent more relative to the previous reporting period.
The charged gross claims within the Liability insurance for motor vehicles class amount to 4.9 million
euros which is by 304,7 thousend euros or 6.6 percent more relative to the previous reporting period.
Gross loss ratio in 2012 is 48.08 percent and is lower than in the previous reporting period.
Credit insurance
Credit insurance covers the risk of default (or payment delays) due to insolvency or other reasons
(acts or facts), export credits and other risks in connection with export, trade and investments in
foreign and domestic markets, credits with installment payments, mortgage and collateral loans,
agricultural credits and other credits and loans.
2012
1,990,397
1,505,137
75.62
35,740
2011
1,909,483
1,903,881
99.71
40,658
104.2
79.1
75.8
87.9
in EUR
Index
Gross loss ratio
Credit insurance represents 1.0 percent of the property insurance gross premium. The most
represented subclass of insurance is the consumer credit subclass, representing 88.9 percent of this
insurance class portfolio.
The gross premium income within the Credit insurance class amounts to 1.5 million euros which is
90,9 thousend euros or 4.2 percent more relative to the previous reporting period. The charged gross
claims within Credit insurance class amount to 1.5 million euros which is by 398,7 thousend euros or
58
20.9 percent less relative to the previous reporting period. Gross loss ratio in 2012 is 75.62 percent
and is lower than in the previous reporting period.
Assistance
Assistance covers assistance for people having trouble either on their travels or in other cases of
absence from their home or permanent residence. This line of business has been intensely developing
during the last few years.
2012
3,826,398
1,032,444
26.98
261,959
2011
3,073,064
797,985
25.97
245,886
124.5
129.4
103.9
106.5
in EUR
Index
Gross loss ratio
Assistance represents 2.0 percent of the property insurance gross premium.
The gross premium income within the Assistance class amounts to 3.8 million euros which is 753,3
thousend euros or 24.5 percent more relative to the previous reporting period.
The charged gross claims within the Assistance class amount to 1,0 million euros which is by 234,5
thousend euros or 29.4 percent more relative to the previous reporting period. Gross loss ratio in
2012 is 26.98 percent and is higher than in the previous reporting period.
Other types of property insurance
Other types of property insurance include: railway vehicle insurance, aviation insurance, marine
insurance, cargo freight insurance, aviation liability insurance, marine liability insurance, suretyship
insurance, financial loss insurance and legal expenses insurance.
2012
4,694,499
2,020,795
43.05
98,408
2011
4,394,833
1,649,308
37.53
95,813
106.8
122.5
114.7
102.7
in EUR
Index
Gross loss ratio
The gross premium of other types of property insurance accounts for 2.5 percent of total property
insurance types, whereas the share of these insurance types in the structure of gross claims
payments is 1.8 percent.
LIFE INSURANCE GROUP
The Company managed to end another year with a record-high number of newly underwritten life
insurances on the Slovenian insurance market. Firm determination, professional approach,
engagement and perseverance of employees (those in charge of on-going development of products
as well as all field advisers) and a high-quality range of life insurance products offered again proved
successful in obtaining excellent results. And most of all, we proved that we can offer our insured
persons the services they need.
In ZM we underwrite life insurance within two classes of insurance. We underwrite classic life
insurance and unit-linked life insurance.
The ZM PRIZMA Hibrid product is an active asset management solution, offering
profitability in this dynamic period of uncertainty.
safety and
ZM PRIZMA Hibrid insurance guarantees:
59
o
o
o
o
financial safety of your closest family in case of your death,
insurance coverage in case of severe illness,
a minimum premium for a maximum coverage,
active asset management in accordance with your goals,
ZM PRIZMA Classic life insurance, taken out with ZM ensures:
o
o
o
o
o
o
payment of sum insured in case of accidental death,
guaranteed yield of 2.75 percent annually,
a year-on increase in the sum insured with annual attribution of profit by the insurance
company,
a cash reward to insured women for each newborn.
ZM PRIZMA unit-linked life insurance taken out with ZM ensures:
o
o
o
o
o
o
o
o
o
investment of cash in accordance with investment expectations,
entry to capital markets with low inputs,
additional funds paid to you in annuity or a single sum after the end of the period of
insurance,
an option of benefit payment in case of an accident.
an option of transferring assets among individual funds,
an option of advance payment in the amount of 80 percent of the surrender value of
policy,
an option of upgrading the policy coverage to 19 severe types of illness.
ZM PRIZMA Riziko life insurance taken out with ZM ensures:
o
o
o
o
payment of sum insured in case of an accident,
an option of personal genetic analysis.
Advantages of this type of insurance taken out with ZM:
o
o
o
o
low premiums for high sums insured without a savings component,
a wide range of sums insured and premiums with no limitation regarding the minimum and
maximum premium and sum insured,
athletes and persons engaged in hazardous occupations are insured with no extra
payment for high risk,
an option of simultaneously taking out accident insurance for children with extremely
favourable premiums.
At ZM, we tailored our insurance types to the lifestyles of our insured persons, who are classified
accordingly. Those who live healthy and safe lives should pay less. We segmented our insured to
smokers and non-smokers, but we did not stop here. We introduced a bonus on lifestyles of a certain
group for people – those who live particularly healthy lives, who are not engaged in dangerous
activities and who do not perform hazardous jobs.
The ZM PRIZMA Junior unit-linked scholarship coverage ensures:
o
o
o
a child’s financial stability in the case of parent’s death,
the payment of benefit in the case of serious illness of the insured person,
insurance for the event of parent’s or child’s accident,
60
o
o
o
the entry to capital markets with low input,
the payment of savings in a single amount or in the form of a scholarship (annuity
payment),
an option of choosing an investment with guaranteed yield.
LIFE INSURANCE IN NUMBERS
2012
In EUR ,000
2011
76,992
Deleži posamezne zavarovalne vrste v kosmati
premiji življenjskih zavarovanj - 2012
75,405
change
In EUR ,000
In percentage
1,587
2,1%
Deleži posamezne zavarovalne vrste v kosmati
premiji življenjskih zavarovanj - 2011
42,3
39,7
57,7
60,3
Life insurance
Life insurance
Unit-linked life
insurance
In EUR ,000
2012
38,268
2011
37,492
change
In EUR ,000
In percentage
776
2.1%
61
Shares of each insurance class in gross claims
2012
Shares of each insurance class in gross claims
2011
28,0
32,1
72,0
67,9
Life insurance
Life insurance
Classic life insurance
Classic life insurance is an insurance and saving with the possibility of annuity payment of the saved
assets. Classic life insurance offers security to close family in case of death, payment of sum insured
in case of an accident, in case of serious illness, in case of accidental death of the insured persons in
a road accident, temporary coverage prior to insurance, a bonus for each newborn child. The sum
insured with added profit can be paid out either at once or as annuity insurance.
2012
30,552,500
25,989,111
85.06
6,959
2011
31,881,501
27,001,166
84.69
7,575
95.8
96.3
100.4
89.5
in euros
Index
Gross loss ratio
*number of newly concluded insurance contracts
Classic life insurance represents 39.7 percent of the life insurance gross premium.
The gross premium income within the Classic life insurance class amounts to 30.6 million euros which
is by 1.3 million euros or 4.2 percent less relative to the previous reporting period.
The charged gross claims within Classic life insurance class amount to 26.0 million euros which is by
1.0 million euros or 3.7 percent less relative to the previous reporting period.
Unit-linked life insurance is a form of life insurance where a company invests the saving premium
component into investment funds. The unit-linked life insurance thus offers insurance in case of death
as well as savings and enrichment of means in mutual funds selected by the insured persons
themselves.
Unit-linked life insurance is a form of life insurance where a company invests the saving premium
component into investment funds. The unit-linked life insurance thus offers insurance in case of death
62
as well as savings and enrichment of means in mutual funds selected by the insured persons
themselves.
in euros
Gross loss
ratio
2012
46,439,750
12,278,414
26.44
26,484
2011
43,523,321
10,490,431
24.10
29,611
106.7
117.0
109.7
89.4
Index
*number of newly concluded insurance contracts
Unit-linked life insurance represents 60.3 percent of the life insurance gross premium.
The gross premium income within the Unit-linked life insurance class amounts to 46,440 thousand
The charged gross claims within the Unit-linked life insurance class amount to 12,278 thousand euros
which is by 1.8 million euros or 17.0 percent more relative to the previous reporting period.
63
RISK MANAGEMENT
MAIN FEATURES OF RISK MANAGEMENT
Risk management is one of the key company's processes. We actively manage risks in all our
business processes at all organization levels.
The top management is aware of the importance of risk management and promotes and supports the
risk management system with all company's employees.
The company manages risks in the form of spread system within which individual business functions
with the internal audit system entirely cover the attendance, surveillance and reporting on business
risks.
The risk management procedure is a continuous strategic process that is constantly being improved
and adjusted to the challenges of business environment and changing legislation in this area. You can
find out more about risk management, the main groups of identified business risks and the manner of
their management in a special chapter in the financial part of the annual report.
In 2012, we started developing the complex ALM model for life insurance. In accordance with the
emerging Solvency II legislation, we started preparing activities in the area of comprehensive risk
management.
INTERNAL AUDIT
ZM’s internal auditing is performed by the Internal Audit Service (hereinafter: IAS), acting as an
independent service that is functionally and organizationally separate from other departments and
directly subordinate to the Management Board.
As in previous reporting periods, the basic objective of IAS’s operation was focused on helping the
Company to realise its 2012 business plan. By providing unbiased assurance on the effectiveness of
risk management and by assessing the proper management of the key risks and the effective and
successful operation of the internal control system, the IAS helped the Company to realise its mission.
A significant part of IAS is focused on the performance of advisory activities.
The service functions in accordance with International Standards For The Professional Practice Of
Internal Auditing, Insurance Act, Code Of Ethics Of The Internal Auditor, Code of Internal Auditing
Rules of Conduct and Constitution with rules on Internal Auditing Service operations within ZM.
The last external appraisal of the quality of IAS’s operation was performed in 2009. The external
appraiser’s opinion confirmed that the IAS was carrying out its function in accordance with the
International Standards for the Professional Practice of Internal Auditing. The next appraisal of the
IAS’s effectiveness is scheduled for 2013.
As at the end of 2012, the IAS employed five internal auditors who performed 19 audit reviews in
2012. When deciding on the areas to be audited, the priority was based on the assessed risk. The
annual programme of IAS’s work was fully implemented. The areas that were subject to internal audits
in 2012 are:
o
o
o
o
o
risks related to property insurance (4 audit reviews)
risks related to life insurance (6 audit reviews)
credit risks (1 audit review)
operative risks (7 audit reviews), and
fraud risks (1 audit review).
64
In 2012, we did not record any events connected with internal fraud that would point to a significant
loss of property. Suspected external insurance fraud is the subject of daily work performed by the
Department for control, supervision and investigation of property insurance procedures.
Internal auditors have unlimited access to all information resources and they cooperate with other
internal services (actuarial service, controlling department) and external assurance service providers
(external auditor) related to risk management. Such cooperation helps the IAS to cover a wide range
of areas and decrease any duplicated work.
On the basis of performed audits, we believe and give assurance that the key risks of ZM’s operations
are dealt with at an acceptable level. Based on performed reviews in 2012, we proposed 28 measures
to be implemented. We assess that the implementation thereof is good. We keep the Management
Board, the Audit Committee and the Supervisory Board of ZM regularly informed about the
implementation of the measures.
The IAS reports to the Management Board about the findings of daily reviews, the assessment on the
suitability and effectiveness of internal controls and about any inconsistencies. The Audit Committee
and the Supervisory Board are kept informed about the IAS’s work on a quarter-yearly basis.
65
SOCIAL RESPONSIBILITY
Today’s greatest virtue is respect to others – whether to employees, insured persons, sponsored
persons, the local authority, children, suppliers or others. Respect to everyone, who is in any way
connected with the organisation. ISO 26.000 determines the essential components of social
responsibility, which are reflected in the said sentences. At ZM, we pursue social responsibility and
sustainable development through all the seven areas described in ISO 26.000: the interaction with the
community, the development, human rights, rights of insured persons, the relationship with
employees, the management of organization, the relationship with the environment, and ethical
behaviour.
OUR EMPLOYEES
Relationship to employees
The company follows the values of human resources management. We strive to maintain good
relationship and quality communication with employees. We are aware of the fact that only motivated
and engaged employees contribute their knowledge and energy to achieving good business results
and positive image of the company in public.
For the second year in a row, a survey called “Zlata nit”, carried out by the ‘Dnevnik’ daily, showed an
extremely high level of ZM employee engagement, as well as their trust expressed to the Management
of the Company and vice versa. In the current situation, ZM finds communication to be essential. An
open, honest and timely communication between the Management and employees is what inspires
confidence among employees in the work performed by the Management, and logically also in the
entire Company. This reflects in employees’ relationship with the insured.
We are aware that in the time of economic crisis we need to put more emphasis on communication
with employees because it is the basis of trust and engagement of employees on all business levels. It
is particularly important that the top management feels the so called 'communication necessity'.
We put great emphasis on coordinating the private and family lives and are happy to notice that the
step towards being the pilot company in introducing the Family Friendly Company Certificate has
proved to be a smart and effective decision.
We put great emphasis on coordinating private and family lives and we are happy to notice that the
step towards being the pilot company in introducing the Family Friendly Company Certificate has
proved to be a smart and effective decision.
Our care for employees
The Family Friendly Company Certificate helps our employees to better navigate between their family
life and responsibilities to their work.
We continuously monitor our operations in the field of sustainable development through the employee
satisfaction survey, where we receive feedback about their actual satisfaction once a year.
The health of our employees is another important area, which we pay special attention to. We perform
fire safety and safety at work trainings, and we have at least one employee in each ZM unit who is
trained in evacuation, fire extinguishing and providing first aid.
We organize annual health check-ups for employees as well as manager check-ups. Moreover, we
consult an authorised MD about additional measures which we, as a responsible company, want to
ensure for our employees. We enable them to monitor and keep their health in a good shape by
providing options for voluntary flu vaccinations, mammography for women and prostate examinations
for men.
66
ZM is proud to have obtained the Family Friendly Company Certificate, which creates even better
conditions for our employees to feel good in our company. We offer them our holiday options at Rogla;
where they can go skiing at reasonable prices in the wintertime or spend a relaxing vacation in the
summer.
In cooperation with Regional organization Union the employees can attend sports activities in rented
sports facilities where they can play basketball, football, tennis, go bowling and attend other
recreational activities. Athletes can also participate in winter or summer sporting events of financial
organizations (ŠIFO).
The company organizes various excursions for employees within the company union. The company
also organizes employee reunions and New Year’s distribution of presents for children of employees
with dancing and Christmas program.
Feedback as the treasure of our organizational culture
The fast changing environment in which our company operates demands fast responses, new views,
adjustments and mostly solutions that help us react in the right way at the right time. Our employees
are our greatest treasure. We are able to achieve our goals successfully only with their help.
Through assessment interviews we monitor work of each individual employee and plan together their
future work that is adjusted with company's goals. In 2012, we introduced a new employee
performance assessment method. The performance assessment criteria were formed considering
each individual job position as well as each individual employee, to ensure proper assessment even of
those tasks that are not envisaged for an individual job position.
In this way we upgraded this area to reach better transparency and each individual's ability to directly
influence the company's success.
Employees and their education
As at the end of the reporting period (31 December 2012), ZM employed a total of 881 people, of
which 483 were women (2011: 482) and 398 men (2011: 393).
In 2012, the number of in-house staff decreased by seven, whereas the number of field
representatives increased by 12. The most common reasons of employee turnover in the reporting
period were employment termination due to retirements, consensual terminations and the end of parttime employment contracts.
Changes in the employee turnover in the 2008–2012 period
Number of employees
1000
800
909
904
874
875
881
600
675
675
659
650
643
234
229
215
225
238
2008
2009
2010
2011
2012
400
200
0
INTERNAL EMPLOYEES
AGENTS
TOTAL
67
The average period of employment of employees is 19.2 years (2011: 18.9 years), of which 11.9 years
(2011: 11.6 years) at ZM.
Education of employees
Educated and competent employees are one of the key company's goals. During the previous years
the company developed an educational system that is divided to the area of functional and the area of
formal education.
Our functional education area, which is called the ZM Academy, distinguishes between the ZM
Expert Academy, ZM Sales Academy and ZM Computer courses. The Expert Academy consists
of 12 basic expert seminars, over 10 expert thematic workshops, and an extensive training
course aimed at obtaining the insurance brokerage license (by taking the test prepared by the
Slovenian Insurance Association). We have our high-quality in-house lecturers for all these
courses. The ZM Sales Academy consists of seminars on the topic of advisory sales and the
development of other sales skills, which is usually covered with four in-house coaches, and to
a smaller degree we also cooperate with external performers. We offer 10 different computer
courses to our employees in order to increase the level of their computer literacy. Working with
computer has become inevitable for all profiles of our employees, therefore we organize practical
computer courses in cooperation with our in-house lecturers from our Informatics Organisation Sector.
In 2012, 96 percent of our employees attended at least one type of functional education; on
average, each employee attended three seminars.
In the area of formal education we include part-time undergraduate and postgraduate study programs
for gaining a certain degree of education which we finance for some of our employees. These study
programmes must correspond to our work area as well as the ZM development strategy and the
career of an employee. With employees that approach additional formal education in an area that is
important for our operations we sign an education agreement.
The level of awareness of just how important education is, has been increasing. Hence, the trend of
increasing numbers of college or university education continued in the reporting period. The number of
employees with a master’s degree in science increased by two.
Educational structure of employees as at 31 December 2012
315
76
33
10
31
2
447
Level I to IV
Level V
Level VI
Level VII
Master's Degree
Doctor's Degree
68
RELATIONSHIP WITH THE LOCAL ENVIRONMENT
We as a company take over the responsibility towards people and environment we live in. Social
responsibility is our duty and at the same time privilege. Our main mission to help people in need is
thus spread across other areas of our operations.
The extent of social responsibility:
economic
social
enviromental
ZM are people who together pursue the values of honesty, competence, success, satisfaction and
responsibility. We identify ourselves with these values and they are reflected in every step of our
operations.
Our business units are a part of the local environments throughout Slovenia; which make it easier for
us to recognise the needs and potential of individual local communities. We create our permanent
value with with numerous sponsorships, donations, preventive actions in sports, cultural, health, arts
and mostly environmental area.
We believe in connecting, that is why we support team sports, achievement and projects that connect
institutions with the community and are actively engaged in broad range of social events.
Through our relationship with the environment, we support:
o
o
o
o
o
o
o
o
Maribor Football Club,
“Zlata lisica” – an Alpine World Ski Competition,
Maribor Branik Handball Club,
Maribor Basketball Club,
Nova KBM Branik Volleyball Club,
Maribor Eco Marathon,
Lent Festival,
Borštnik Meeting.
The results of our activities are visible in engagement, satisfaction and loyalty of employees which is
consequently apparent in higher productivity and profit which generates positive social changes.
69
We cooperate with organizations which focus on projects important for people and the society: IRDO,
Materinski dom, Varna hiša, Rdeči noski, Europa Donna and others.
We are also members of the National Strategy and Social Responsibility Partnership and co-founders
of the Network for Corporate Social Responsibility of Slovenia; where we promote socially responsible
behaviour in companies as well as individuals. Our endeavours are aimed at making this an important
segment in all the areas of our operation, as well as an integral part of the relationships we build.
RELATIONSHIP TO THE NATURAL ENVIRONMENT
Our operations follow the view of ecologic sustainability. We are raising awareness among our
employees and their family members regarding the mutual dependence between the human and
natural environment. Moreover, we are raising the ecological awareness of our employees with our
regular annual environmental projects.
ZM IS ON THE RIGHT WAY
Our endeavours are rewarded. This is a sign that we are on the right way.
We are proud of:
o The Primus Award conferred in October 2011 to Mr Drago Cotar, the Chairman of the
Management Board. The award proves his excellence in communications and a
contribution to the development of the communication profession.
o The Horus Award for corporate social responsibility, which we received in 2009.
o The award for Top Maribor Company, which we received three times, and our Chairman
of the Management Board Drago Cotar, who was selected the Top Maribor Director
Award by citizens of Maribor for the second time.
o Being ranked among the top socially responsible companies in Slovenia in 2010, 2011
and 2012 by the Finance daily.•
o The “Zlata nit” award conferred by the Dnevnik daily for reaching the finals of choosing
the top employers in the category of large companies in 2011 and 2012.
70
COMMUNICATION WITH TARGET PUBLIC
“Communication is the foundation of every relationship. I cannot imagine having a relationship (of any
kind) with somebody if I do not communicate with them. The equation is simple. But the realization, I
admit, is much more complicated.”14
We adapt the communication strategy with key public of ZM to the interests and characteristics of
individual public and we use those tools for communication with which one can achieve the greatest
communication impact.
Target communication groups of the company are:
In this reporting period, the basic goal of internal communication was again aimed at building
relationships, at personal growth, satisfaction and engagement. At creating a climate which leads to
good wellbeing, the joy to work and the wish for success.
The ZM communication strategy is based on the following goals:
o
o
o
o
o
o
o
openness, transparency and honesty;
dialogue instead of monologue;
intensified personal communication;
constructiveness and empathy – these two are vital;
words backed by actions;
leadership instead of management;
considering other people’s opinions and views;
We have been pursuing our strategy (and goals) by acting responsibly and by not omitting anything
we have set in the strategy. All of us together, and each of us alone; we measure the success of our
strategy, “through people – the employees” using the feedback we receive from them and by
14
Speech by Drago Cotar, Chairman of the Management Board, upon receiving the 2011 Primus Award for
communication excellence.
71
monitoring their work, engagement, endeavours and responsibility. And, of course, “through our
customers” by measuring their satisfaction with us – our relationship and communication with them.
At ZM, we believe that there is no successful marketing strategy without the right internal
communication.
In order to carry out effective internal communications, we use all internal communication tools, which
satisfy the needs and expectations of our employees. In the area of personal communication, this
applies particularly to organising ‘open door days’ by Members of the Management Board,
motivational visits by the Chairman of the Management Board, regular meetings of organisational
units, regular weekly meetings by Directors/Managers with their immediate subordinates, annual
development interviews with employees, traditional informal meetings with employees, etc.
Considering the size of the company and the dispersion of employees throughout Slovenia, we give a
great emphasis on timely, correct and effective communication via e-mail and intranet (the website for
employees); the ZM internal magazine (Zmleto) has been also well received. It is intended for
employees as well pensioners who have, despite being retired, remained our important target
audience.
The correctness of our communication goals has been confirmed also by the results of the 2012 “Zlata
nit” survey for top employers, which is organized by the ‘Dnevnik’ daily. For the second year in a row,
we managed to be one of the 21 finalists in the category of large companies. We are proud and happy
to be on the right way, in the area of projects intended for employees. Our great motivation for the
future was expressed also in an encouraging speech by Mr Drago Cotar on the occasion of our
repeated successful achievement: „Being ranked among the finalists of “Zlata nit” is special
acknowledgment and proof that ZM holds a great treasure – our employees, who feel the company
and who give the maximum contribution to our common goals and success through their high
motivation. They are the heart of ZM.”
72
EVENTS AFTER THE BALANCE SHEET DATE
The events after the balance sheet date15, which are important for ZM in 2013, are:
o
o
o
o
o
15
On 10 January, ZM obtains the underwriting license for the health insurance area.
On 28 January, the European Data Protection Day, ZM receives a reward for good practice in
the private sector, in the area of sensitive personal data and personal data collections
management.
On 11 February, Pozavarovalnica Sava, d.d. receives a decision by the Insurance Supervision
Agency; giving it direct access to a share of voting rights or a share in equity of Zavarovalnica
Maribor, d.d., equalling or exceeding 50 percent, within six months from the date when the
decision was served; in the opposite case the decision will terminate. At the same time, the
Insurance Supervision Agency issued a permit to Pozavarovalnica Sava, d.d. and Slovenska
odškodninska družba d.d., to directly obtain, on the basis of a shareholders agreement
concluded by means of an Agreement on rights related with shares of Zavarovalnica Maribor
d.d., a total share of voting rights or a total share in equity of Zavarovalnica Maribor, d.d.,
equalling or exceeding 50 percent, within six months from the date when the permit was
served; in the opposite case the permit will terminate.
On 25 February, Pozavarovalnica Sava, d.d. receives a decision by the Slovenian Competition
Protection Agency; stating it does not oppose the amalgamation of Pozavarovalnica Sava,
d.d. and Zavarovalnica Maribor d.d. and that it is in accordance with the rules of competition.
On 1 March 2013, the 40th General Meeting of Zavarovalnica Maribor d.d. confirms the
appointment of Mr Dušan Čeč and Mr Jošt Dolničar to the position of Members of the
Supervisory Board, due to the end of the term of representatives of Pozavarovalnica Sava d.d.
All significant events until 12 March 2013 are included.
73
SELECTED INDICATORS OF BUSINESS OPERATIONS
Selected accounting and financial indicators of business operations are prepared according to the
Decision on annual report and quarterly financial statements of insurance undertakings - SKL 2009.
1. Growth of gross premium written (index)
No.
INSURANCE CLASS
1
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Gross w ritten premium for
the current year
Gross premium w ritten for
the past year
from 1.1. to 31.12.2012
3
ACCIDENT INSURANCE
HEALTH INSURANCE
LAND MOTOR VEHICLES INSURANCE
RAILWAY ROLLING STOCK INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
GOODS IN TRANSIT INSURANCE
INSURANCE AGAINST FIRE AND NATURAL FORCES
OTHER DAMAGE TO PROPERTY INSURANCE
MOTOR THIRD-PARTY LIABILITY INSURANCE
AIRCRAFT LIABILITY INSURANCE
VESSEL LIABILITY INSURANCE
GENERAL LIABILITY INSURANCE
CREDIT INSURANCE
SURETYSHIP INSURANCE
MISCELLANEOUS FINANCIAL LOSS INSURANCE
PROCEDURE COSTS INSURANCE
ASSISTANCE INSURANCE
TOTAL NON-LIFE INSURANCE PRODUCTS
Grow th inde x
the current year
the past year
from 1.1. to 31.12.2011
in 2012
from 1.1. to 31.12.2011
f rom 1.1. to 31.12.2010
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 * 100
Grow th inde x
19.579.260
18.910.639
104
18.910.639
18.754.966
50.216.633
52.563.552
96
52.563.552
54.261.520
101
97
124.886
288.424
1.852.241
20.111.380
18.309.811
57.975.232
284.373
223.505
10.214.307
1.990.397
188.510
1.139.853
592.707
3.826.398
167.451
302.624
1.788.280
11.900.673
27.857.161
59.858.525
240.969
220.998
7.371.138
1.909.483
68.395
1.108.427
497.689
3.073.064
75
95
104
169
66
97
118
101
139
104
276
103
119
125
167.451
302.624
1.788.280
11.900.673
27.857.161
59.858.525
240.969
220.998
7.371.138
1.909.483
68.395
1.108.427
497.689
3.073.064
282.629
356.792
1.642.401
11.342.916
27.330.718
61.371.097
220.529
207.876
6.615.756
1.986.544
60.895
848.987
478.970
2.527.106
59
85
109
105
102
98
109
106
111
96
112
131
104
122
100
186.917.917
187.839.066
100
187.839.066
188.289.702
19 LIFE INSURANCE
30.552.500
31.881.501
96
31.881.501
33.072.748
96
21 UNIT-LINKED LIFE INSURANCE
46.439.750
43.523.321
107
43.523.321
38.236.216
114
76.992.250
75.404.821
102
75.404.821
71.308.964
106
263.910.167
263.243.887
100
263.243.887
259.598.666
101
TOTAL LIFE INSURANCE PRODUCTS
TOTAL ZM d.d.
2. Net insurance premium written in % of gross premium written
No.
INSURANCE CLASS
1
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Net w ritten insurance
premium for the current
the current year
from 1.1. to 31.12.2012
from 1.1. to 31.12.2012
3
4
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
Share of ne t
pre m ium
Share of ne t
pre m ium
premium for the current
the current year
in 2012
from 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
5 = 3 / 4 *100
3
4
5 = 3 / 4 *100
16.113.440
19.579.260
82,3
15.085.524
18.910.639
39.921.066
50.216.633
79,5
39.929.466
52.563.552
79,8
76,0
38.579
232.457
1.211.504
12.169.672
12.409.147
47.411.425
64.353
180.384
7.923.661
1.642.077
94.683
731.353
164.786
1.484.315
124.886
288.424
1.852.241
20.111.380
18.309.811
57.975.232
284.373
223.505
10.214.307
1.990.397
188.510
1.139.853
592.707
3.826.398
30,9
80,6
65,4
60,5
67,8
81,8
22,6
80,7
77,6
82,5
50,2
64,2
27,8
38,8
19.506
236.473
1.126.876
4.552.300
19.181.077
47.507.762
-110.031
173.519
5.438.615
1.527.586
54.716
622.337
-457.467
1.293.502
167.451
302.624
1.788.280
11.900.673
27.857.161
59.858.525
240.969
220.998
7.371.138
1.909.483
68.395
1.108.427
497.689
3.073.064
11,6
78,1
63,0
38,3
68,9
79,4
-45,7
78,5
73,8
80,0
80,0
56,1
-91,9
42,1
141.792.901
186.917.917
75,9
136.181.762
187.839.066
72,5
19 LIFE INSURANCE
30.464.633
30.552.500
99,7
31.804.063
31.881.501
99,8
46.161.352
46.439.750
99,4
43.352.250
43.523.321
99,6
76.625.985
76.992.250
99,5
75.156.313
75.404.821
99,7
218.418.886
263.910.167
82,8
211.338.074
263.243.887
80,3
TOTAL ZM d.d.
3. Movement in gross claims paid (index)
No.
INSURANCE CLASS
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Gross claims paid for the
current year
past year
Change inde x
current year
from 1.1. to 31.12.2012
from 1.1. to 31.12.2011
in 2012
from 1.1. to 31.12.2011
f rom 1.1. to 31.12.2010
in 2011
3
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 * 100
2
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
7.052.095
6.741.318
37.135.847
71.887
351.477
752.112
10.139.192
13.801.273
32.313.805
16.638
4.911.233
1.505.137
166.224
662.457
past year
Change index
105
6.741.318
7.006.049
96
35.781.633
104
35.781.633
40.198.747
89
56.343
163.526
680.531
7.606.876
14.509.852
28.932.653
128
215
111
133
95
112
56.343
163.526
680.531
7.606.876
14.509.852
28.932.653
56
84
127
123
88
90
25.382
4.606.553
1.903.881
50.637
672.891
66
107
79
328
98
25.382
4.606.553
1.903.881
50.637
672.891
1.032.444
797.985
129
797.985
101.167
193.699
535.879
6.204.362
16.581.524
32.235.477
2.096
1.500
4.458.147
2.368.655
171.593
406.116
714
658.529
109.911.821
102.530.061
107
102.530.061
111.124.254
19 LIFE INSURANCE
25.989.111
27.001.166
96
27.001.166
31.368.817
86
12.278.414
10.490.431
117
10.490.431
8.789.550
119
TOTAL ZM d.d.
1.692
103
80
30
166
121
92
38.267.524
37.491.597
102
37.491.597
40.158.367
93
148.179.346
140.021.658
106
140.021.658
151.282.620
93
Zavarovalnica Maribor d.d.Enclosure to the Bussines report
74
3a. Net claims paid in % of gross claims paid
No.
INSURANCE CLASS
1
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Net claims paid for the
current year
Gross claims paid f or the
current year
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
3
4
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
4. Average claim paid
No.
INSURANCE CLASS
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
79
5.148.955
6.741.318
76
79
27.052.158
35.781.633
76
55.946
281.644
338.164
6.441.566
10.635.720
24.605.208
71.887
351.477
752.112
10.139.192
13.801.273
32.313.805
78
80
45
64
77
76
45.075
127.284
337.569
1.964.453
10.610.410
21.027.223
56.343
163.526
680.531
7.606.876
14.509.852
28.932.653
80
78
50
26
73
73
13.279
3.721.855
-74.268
112.771
510.034
840
16.638
4.911.233
1.505.137
166.224
662.457
80
76
-5
68
77
19.671
3.411.729
-152.299
14.020
527.361
724
25.382
4.606.553
1.903.881
50.637
672.891
78
74
-8
28
78
81.603.737
109.911.821
74
70.134.332
102.530.061
68
25.987.003
25.989.111
100
27.001.166
27.001.166
100
1.032.444
12.157.869
12.278.414
99
10.431.113
10.490.431
99
38.267.524
100
37.432.279
37.491.597
100
119.748.608
148.179.346
81
107.566.611
140.021.658
77
Ave rage
claim s in e uro
Gross claims paid in
current year
Number of claims for the
current year
Ave rage
claim s in e uro
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5=3/ 4
3
4
5=3/ 4
TOTAL ZM d.d.
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
797.985
38.144.871
7.052.095
12.317
573
6.741.318
12.560
37.135.847
71.887
351.477
752.112
10.139.192
13.801.273
32.313.805
63.706
583
35.781.633
63.141
567
5
102
2.503
6.610
17.889
11.790
14.377
3.446
300
1.534
771
2.741
56.343
163.526
680.531
7.606.876
14.509.852
28.932.653
11.269
1.797
272
2.081
691
2.415
8
2.460
1.416
23
519
2.080
1.996
1.063
7.227
1.276
25.382
4.606.553
1.903.881
50.637
672.891
5
91
2.498
3.656
20.994
11.981
1
5
2.500
1.556
18
434
1
16.638
4.911.233
1.505.137
166.224
662.457
109.911.821
119.348
921
102.530.061
119.441
858
25.989.111
10.051
2.586
27.001.166
12.824
2.106
1.032.444
537
5.076
1.843
1.224
2.813
1.550
797.985
12.278.414
11.128
1.103
10.490.431
8.567
1.225
38.267.524
21.179
1.807
37.491.597
21.391
1.753
148.179.346
140.527
1.054
140.021.658
140.832
994
1
5 = 3 / 4 * 100
7.052.095
19 LIFE INSURANCE
INSURANCE CLASS
in 2011
4
Number of claims for the
current year
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
Claims ratio
f rom 1.1. to 31.12.2011
3
f rom 1.1. to 31.12.2012
2
No.
f rom 1.1. to 31.12.2011
37.135.847
current year
5.
in 2012
5 = 3 / 4 * 100
Share of ne t
claim s
5.554.361
TOTAL ZM d.d.
current year
29.406.617
19 LIFE INSURANCE
Net claims paid for the
current year
Share of ne t
claim s
current year
Gross claims w ritten f or
the past year
Claim s ratio in
%
Gross claims paid in
current year
Gross claims w ritten f or
the past year
Claim s ratio in
%
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5 = 3 / 4 (%)
3
4
5 = 3 / 4 (%)
7.052.095
19.579.260
36,0
6.741.318
18.910.639
37.135.847
50.216.633
74,0
35.781.633
52.563.552
68,1
71.887
351.477
752.112
10.139.192
13.801.273
32.313.805
57,6
121,9
40,6
50,4
75,4
55,7
56.343
163.526
680.531
7.606.876
14.509.852
28.932.653
7,4
48,1
75,6
88,2
58,1
25.382
4.606.553
1.903.881
50.637
672.891
27,0
797.985
167.451
302.624
1.788.280
11.900.673
27.857.161
59.858.525
240.969
220.998
7.371.138
1.909.483
68.395
1.108.427
497.689
3.073.064
33,6
54,0
38,1
63,9
52,1
48,3
1.032.444
124.886
288.424
1.852.241
20.111.380
18.309.811
57.975.232
284.373
223.505
10.214.307
1.990.397
188.510
1.139.853
592.707
3.826.398
109.911.821
186.917.917
58,8
102.530.061
187.839.066
19 LIFE INSURANCE
25.989.111
30.552.500
85,1
27.001.166
31.881.501
84,7
12.278.414
46.439.750
26,4
10.490.431
43.523.321
24,1
38.267.524
76.992.250
49,7
37.491.597
75.404.821
49,7
148.179.346
263.910.167
56,1
140.021.658
263.243.887
53,2
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
TOTAL ZM d.d.
16.638
4.911.233
1.505.137
166.224
662.457
35,6
11,5
62,5
99,7
74,0
60,7
26,0
54,6
75
6. Operating costs in % in regard to gross written premium
No.
INSURANCE CLASS
1
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Operating costs
Gross w ritten premium f or
the current year
f rom 1.1. to 31.12.2012
3
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
% of operating
costs
Operating costs
the current year
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
6.068.457
19.579.260
12.588.143
24.653
66.563
547.212
7.125.336
6.103.710
11.922.630
42.593
48.646
2.934.727
737.088
31.315
398.758
234.039
813.546
% of operating
costs
31,0
6.162.941
18.910.639
50.216.633
25,1
12.766.159
52.563.552
24,3
124.886
288.424
1.852.241
20.111.380
18.309.811
57.975.232
284.373
223.505
10.214.307
1.990.397
188.510
1.139.853
592.707
3.826.398
19,7
23,1
29,5
35,4
33,3
20,6
15,0
21,8
28,7
37,0
16,6
35,0
39,5
21,3
49.279
77.356
887.188
3.351.289
10.219.840
12.744.570
41.958
51.865
1.386.082
919.768
9.163
412.061
246.052
488.930
167.451
302.624
1.788.280
11.900.673
27.857.161
59.858.525
240.969
220.998
7.371.138
1.909.483
68.395
1.108.427
497.689
3.073.064
29,4
25,6
49,6
28,2
36,7
21,3
17,4
23,5
18,8
48,2
13,4
37,2
49,4
15,9
49.687.415
186.917.917
26,6
49.814.501
187.839.066
26,5
6.665.740
30.552.500
21,8
6.637.857
31.881.501
20,8
15.903.839
46.439.750
34,2
17.233.217
43.523.321
39,6
19 LIFE INSURANCE
32,6
22.569.579
76.992.250
29,3
23.871.074
75.404.821
31,7
TOTAL ZM d.d.
72.256.994
263.910.167
27,4
73.685.575
263.243.887
28,0
7. Stroški pridobivanja zavarovanj v % od kosmate obračunane zavarovalne premije
No.
INSURANCE CLASS
1
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Acquisition costs
Gross w ritten premium f or
the current year
f rom 1.1. to 31.12.2012
3
the current year
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
18.910.639
50.216.633
6,2
3.211.314
52.563.552
6,1
7,9
5,2
10,2
13,2
9,0
5,1
4,5
4,1
8,8
19.962
18.495
183.202
1.376.132
2.856.762
3.021.304
10.391
9.279
480.648
13,1
6,9
4,2
144.631
33.287
123.752
167.451
302.624
1.788.280
11.900.673
27.857.161
59.858.525
240.969
220.998
7.371.138
1.909.483
68.395
1.108.427
497.689
3.073.064
11,9
6,1
10,2
11,6
10,3
5,0
4,3
4,2
6,5
149.375
40.788
160.815
124.886
288.424
1.852.241
20.111.380
18.309.811
57.975.232
284.373
223.505
10.214.307
1.990.397
188.510
1.139.853
592.707
3.826.398
13.615.487
186.917.917
7,3
12.776.425
187.839.066
6,8
760.338
30.552.500
2,5
885.649
31.881.501
2,8
7.802.649
46.439.750
16,8
11.564.032
43.523.321
26,6
8.562.987
76.992.250
11,1
12.449.681
75.404.821
16,5
22.178.474
263.910.167
8,4
25.226.106
263.243.887
9,6
1.754.070
19.579.260
3.092.719
9.810
14.923
188.795
2.651.694
1.651.307
2.981.175
12.839
9.087
898.091
% acquisition
costs
1.287.266
19 LIFE INSURANCE
TOTAL ZM d.d.
Acquisition costs
9,0
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
% acquisition
costs
6,8
13,0
6,7
4,0
8. Impact of investments in % of average investments (of opening and closing balance)
No.
INSURANCE CLASS
1
2
1 NALOŽBE KRITNEGA PREMOŽENJA
2 NALOŽBE KRITNEGA SKLADA
3 NALOŽBE LASTNIH VIROV
TOTAL INVESTMENTS OF ZM d.d.
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
f rom 1.1. to 31.12.2012
in 2012
in 2012
f rom 1.1. to 31.12.2011
in 2011
in 2011
3
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
8.020.966
241.665.420
3,3
10.273.557
215.978.448
4,8
15.705.731
385.576.832
4,1
8.397.724
369.791.342
2,3
1.501.949
25.678.480
5,8
124.217
11.194.781
1,1
25.228.646
652.920.731
3,9
18.795.498
596.964.570
3,1
76
9. Net provisions for claims outstanding in % of net income arising from insurance premiums
No.
INSURANCE CLASS
1
2
Net provisions f or claims
outstanding
f rom 1.1. to 31.12.2012
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
3
ACCIDENT INSURANCE
HEALTH INSURANCE
AIRCRAFT INSURANCE
VESSEL INSURANCE
CREDIT INSURANCE
19 NON-LIFE INSURANCE
TOTAL ZM d.d.
4
16.070.083
15.846.906
17.416.944
181.532
717.153
209.592
6.985.632
12.808.123
81.566.723
7.914
217.397
26.058.539
1.949.389
146.502
552.013
5 = 3 / 4 * 100
Net provisions f or claims
outstanding
Net reserves
for claim s
Net income f rom insurance outstanding in
premiums
net revenue
from
insurance
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5 = 3 / 4 *100
101,4
12.742.950
14.893.347
40.712.194
42,8
16.628.830
39.892.280
41,7
34.859
230.397
1.201.919
9.546.789
15.829.268
47.981.143
44.950
175.004
7.145.291
1.496.919
95.226
727.381
120.600
1.456.844
520,8
311,3
17,4
73,2
80,9
170,0
17,6
124,2
364,7
130,2
153,8
75,9
308.752
717.466
272.579
3.290.391
9.968.854
76.169.525
19.135
239.898
1.087.433
4.632.027
18.827.205
47.056.494
-106.931
168.119
5.307.663
1.644.770
53.435
607.617
-503.294
1.242.824
1.613,5
299,1
25,1
71,0
52,9
161,9
164.887.537
142.645.689
115,6
145.841.480
135.062.022
108,0
13.477.851
30.531.208
44,1
12.884.599
31.890.445
40,4
5.808.703
46.158.471
12,6
4.032.534
43.349.620
9,3
19.286.553
76.689.679
25,1
16.917.134
75.240.065
22,5
184.174.090
219.335.368
84,0
162.758.613
210.302.087
77,4
Gross profit (+) or loss (-)
Net insurance premium
for the current year
w ritten for the current year
% of profit/loss
in net
prem ium
21 LIFE INSURANCE
Net reserves
for claim s
Net income f rom insurance outstanding in
premiums
net revenue
from
insurance
2012/2011
from 1.1. to 31.12.2012
30.6.
25.429
22.516.902
2.834.597
59.326
305.877
85,6
15,1
424,2
172,3
111,0
50,3
10. Gross profit or loss for the current year in % of net premium written
No.
INSURANCE CLASS
1
2
Gross prof it (+) or loss (-)
% of profit/loss
in net
prem ium
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5 = 3 / 4 (%)
3
4
5 = 3 / 4 (%)
1.804.597
141.792.901
1,3
12.036.101
136.181.762
8,8
2 LIFE INSURANCE
5.709.935
76.625.985
7,5
2.603.070
75.156.313
3,5
TOTAL ZM d.d.
7.514.532
218.418.886
3,4
14.639.171
211.338.074
6,9
11. Gross profit or loss for the current year in % of average capital
No.
INSURANCE CLASS
1
2
Average balance % of
profit/loss in of capital
(1.1. + 31.12. / 2)
% of profit/loss
in capital
Average balance % of
profit/loss in of capital
(1.1. + 31.12. / 2)
f rom 1.1. to 31.12.2012
3
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 (%)
3
4
5 = 3 / 4 (%)
1.804.597
59.302.328
3,0
2 LIFE INSURANCE
5.709.935
34.022.017
TOTAL ZM d.d.
7.514.532
93.324.345
% of profit/loss
in capital
12.036.101
53.193.840
22,6
16,8
2.603.070
29.509.696
8,8
8,1
14.639.171
82.703.536
17,7
12. Gross profit or loss for the current year in % of average assets
No.
INSURANCE CLASS
1
2
Average assets
(1.1. + 31.12. / 2)
% of profit/loss
in assets
Average assets
(1.1. + 31.12. / 2)
% of profit/loss
in assets
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
1.804.597
381.681.745
0,5
12.036.101
360.621.751
3,3
2 LIFE INSURANCE
5.709.935
415.457.186
1,4
2.603.070
388.150.323
0,7
TOTAL ZM d.d.
7.514.532
795.675.400
0,9
14.639.171
747.515.670
2,0
13. Gross profit or loss for the current year per share
No.
INSURANCE CLASS
1
2
Number of shares
% of profit/loss
per share
Number of shares
% of profit/loss
per shar e
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5=3/ 4
3
4
5=3/ 4
2 LIFE INSURANCE
TOTAL ZM d.d.
7.514.532
12.453.831
0,6
14.639.171
12.453.831
1,2
77
14. Net profit or loss for the current year in % of average capital
No.
INSURANCE CLASS
1
2
Net profit (+) or loss (-)
Average capital
(1.1. + 31.12. / 2)
% of profit/los s
in capital
Net profit (+) or loss (-)
Average capital
(1.1. + 31.12. / 2)
f rom 1.1. to 31.12.2012
3
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
% of profit/los s
in capital
1
NON-LIFE INSURANCE
1.505.066
59.302.328
2,5
8.935.884
53.193.840
2
LIFE INSURANCE
6.211.948
34.022.017
18,3
1.621.191
29.509.696
16,8
5,5
TOTAL ZM d.d.
7.717.014
93.324.345
8,3
10.557.075
82.703.536
12,8
15. Available capital of insurance company in % of net premium
No.
INSURANCE CLASS
1
2
Available capital of
insurance company
premium f or the current
year
% avail. capital
in ne t
prem ium
insurance company
premium f or the current
year
f rom 1.1. to 31.12.2012
3
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
% avail. capital
in net
pre m ium
1
NON-LIFE INSURANCE
53.085.882
141.792.901
37,4
51.999.008
136.181.762
38,2
2
LIFE INSURANCE
29.909.051
76.625.985
39,0
28.835.180
75.156.313
38,4
TOTAL ZM d.d.
82.994.933
218.418.886
38,0
80.834.188
211.338.074
38,2
16. Available capital of insurance company in % of minimum capital
No.
INSURANCE CLASS
1
2
insurance company
Minimum capital of the
insurance company
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
3
4
% of available
capital in
m inim um
capital
% of available
capital in
m inim um
capital
insurance company
Minimum capital of the
insurance company
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
1
NON-LIFE INSURANCE
53.085.882
24.807.478
214,0
51.999.008
23.883.399
217,7
2
LIFE INSURANCE
29.909.051
15.800.707
189,3
28.835.180
15.099.408
191,0
TOTAL ZM d.d.
82.994.933
40.608.185
204,4
80.834.188
38.982.807
207,4
17. Available capital of insurance company in % of net technical provisions
No.
INSURANCE CLASS
1
2
% of available
capital in
pr ovisions
insurance company
Net technical provisions
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
insurance company
f rom 1.1. to 31.12.2012
3
% of available
capital in
provisions
1
NON-LIFE INSURANCE
53.085.882
234.568.982
22,6
51.999.008
212.827.517
2
LIFE INSURANCE
29.909.051
383.288.964
7,8
28.835.180
348.972.775
24,4
8,3
TOTAL ZM d.d.
82.994.933
617.857.946
13,4
80.834.188
561.800.292
14,4
18. Available capital of insurance company in % of receivables from reinsurance and technical provisions allocated for reinsurers
No.
INSURANCE CLASS
1
2
insurance company
Receivables from
reinsurance and technical
provisions allocated for
reinsurers
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
3
4
1
NON-LIFE INSURANCE
53.085.882
2
LIFE INSURANCE
29.909.051
TOTAL ZM d.d.
82.994.933
% of available
capital in
re ceivables
from
reins urance
and te chnical
pr ovisions
insurance company
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
65.981.330
80,5
51.999.008
292.537 10.224,0
28.835.180
66.273.867
% of available
capital in
re ce ivable s
from
reinsurance
and te chnical
provisions
Receivables from
reinsurance and technical
provisions allocated for
reinsurers
125,2
80.834.188
60.272.559
86,3
198.268 14.543,6
60.470.826
133,7
19. Net premium written in regard to average capital and technical provisions
No.
INSURANCE CLASS
1
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
TOTAL ZM d.d.
Average capital + TP (1.1.
+ 31.12.) / 2
% net
pre m ium in
capital and
pr ovisions
w ritten f or the current year
Average capital + TP (1.1.
+ 31.12.) / 2
% net
pre m ium in
capital and
provisions
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
141.792.901
283.000.577
50,1
136.181.762
256.086.073
53,2
76.625.985
400.152.886
19,1
75.156.313
371.303.253
20,2
218.418.886
683.153.464
32,0
211.338.074
627.389.325
33,7
20. Net premium written with regard to average capital
No.
INSURANCE CLASS
1
2
1
NON-LIFE INSURANCE
2
LIFE INSURANCE
TOTAL ZM d.d.
Average capital (1.1. +
31.12.) / 2
% net
pre m ium w ith
re gard to
capital
w ritten f or the current year
Average capital (1.1. +
31.12.) / 2
% net
prem ium w ith
re gar d to
capital
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
141.792.901
59.302.328
239,1
136.181.762
53.193.840
256,0
76.625.985
34.022.017
225,2
75.156.313
29.509.696
254,7
218.418.886
93.324.345
234,0
211.338.074
82.703.536
255,5
78
21. Average net technical provisions in regard to net income from insurance premium
No.
INSURANCE CLASS
1
2
Average net TP (1.1. +
31.12.) / 2
Net income f rom insurance
premium
% of net TP in
net revenue
from
insurance
pr em ium s
Average net TP (1.1. +
31.12.) / 2
Net income f rom insurance
premium
% of net TP in
net revenue
from
insurance
prem ium s
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
3
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
223.698.250
142.645.689
156,8
202.892.233
135.062.022
2 LIFE INSURANCE
366.130.870
76.689.679
477,4
341.793.557
75.240.065
454,3
TOTAL ZM d.d.
589.829.119
219.335.368
268,9
544.685.790
210.302.086
259,0
150,2
22. Capital with regard to net unearned premium
No.
INSURANCE CLASS
1
2
% capital in net
unearned
prem ium
Insurance company capital
Net unearned premium
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
Net unearned premium
f rom 1.1. to 31.12.2012
3
60.812.257
61.183.108
99,4
57.792.399
2 LIFE INSURANCE
TOTAL ZM d.d.
38.296.820
515.307
7.431,8
99.109.077
61.698.415
160,6
% capital in net
unearned
prem ium
61.616.146
93,8
29.747.214
579.002
5.137,7
87.539.613
62.195.148
140,7
23. Capital in regard to liabilities
No.
INSURANCE CLASS
1
2
% of capital in
total liabilities
Liabilities
from 1.1. to 31.12.2012
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
4
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
Liabilities
f rom 1.1. to 31.12.2012
3
% of capital in
total liabilities
60.812.257
394.551.735
15,4
57.792.399
368.811.755
15,7
2 LIFE INSURANCE
38.296.820
437.825.232
8,7
29.747.214
393.089.139
7,6
TOTAL ZM d.d.
99.109.077
830.361.653
11,9
87.539.613
760.989.148
11,5
24. Net technical provisions in regard to liabilities
Liabilities
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
% of
provisions in
total liabilities
in 2012
3
4
5 = 3 / 4 * 100
234.568.982
394.551.735
2 LIFE INSURANCE
383.288.964
TOTAL ZM d.d.
617.857.946
No.
INSURANCE CLASS
1
2
f rom 1.1. to 31.12.2011
% of
provisions in
total liabilities
in 2011
3
4
5 = 3 / 4 *100
59,5
212.827.517
368.811.755
437.825.232
87,5
348.972.775
393.089.139
88,8
830.361.653
74,4
561.800.292
760.989.148
73,8
Liabilities
f rom 1.1. to 31.12.2011
57,7
25. Net mathematical provisions with regard to net technical provisions
No.
INSURANCE CLASS
1
2
TOTAL ZM d.d.
Balance of net
mathematical provisions
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
3
4
355.582.219
617.857.946
% of MP in total
pr ovisions
% of MP in total
provisions
Balance of net
mathematical provisions
in 2012
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
in 2011
5 = 3 / 4 * 100
3
4
5 = 3 / 4 *100
329.973.862
561.800.292
57,6
58,7
26. Gross premium written in regard to the number of regular employees
No.
INSURANCE CLASS
1
2
TOTAL ZM d.d.
Average number of
Gross premium w ritten f or employees (1.1. + 31.12.) /
the current year
2
f rom 1.1. to 31.12.2012
from 1.1. to 31.12.2012
Am ount of
gross
premium per
em ployee
in 2012
3
4
5=3/ 4
263.910.167
878
300.581
Average number of
Gross premium w ritten f or employees (1.1. + 31.12.) /
the current year
2
f rom 1.1. to 31.12.2011
f rom 1.1. to 31.12.2011
Am ount of
gross
prem ium per
em ployee
in 2011
3
4
5=3/ 4
263.243.887
875
301.022
79
FINANCIAL REPORT
ZM Name:
Zavarovalnica Maribor, delniška zavarovalna družba
Short name:
Registration date:
26 December 1990,
Tax number:
44814631
5063400
Classification by Activity:
65.120 - other insurances
Zavarovalnica Maribor d.d. Financial report
CONTENTS OF FINANCIAL REPORT
STATEMENT OF MANAGEMENT RESPONSIBILITY ...................................................................... 82
FINANCIAL STATEMENT OF ZM .................................................................................................... 83
BALANCE SHEET ........................................................................................................................ 83
PROFIT AND LOSS ACCOUNT .................................................................................................... 84
STATEMENT OF OTHER COMPREHENSIVE INCOME ............................................................... 85
CASH FLOW STATEMENT .......................................................................................................... 86
STATEMENT OF CHANGES IN EQUITY ...................................................................................... 87
INTRODUCTORY NOTES AND ACCOUNTING POLICIES .............................................................. 88
Consolidation ................................................................................................................................ 88
Statement of Compliance .............................................................................................................. 88
The Procedure for Adopting the Annual Report.............................................................................. 91
Functional and reporting currency ................................................................................................. 91
Transfer of Events......................................................................................................................... 91
Measurement Base………………………………………………………………………………………….91
The Use of Assessments and Audits ............................................................................................. 92
The Operations Revision by the Controller .................................................................................... 93
Summary of Significant Accounting Policies .................................................................................. 94
RISK MANAGEMENT .................................................................................................................... 109
Capital and Capital Adequacy Risk.............................................................................................. 110
Insurance Risk ............................................................................................................................ 111
Financial Risk.............................................................................................................................. 118
Operative Risks........................................................................................................................... 127
Risk Management – Future Changes .......................................................................................... 127
SEGMENT REPORTING ................................................................................................................ 128
EXPLANATIONS TO THE ACCOUNTING STATEMENTS ............................................................. 133
STATEMENT OF MANAGEMENT RESPONSABILITY
82
FINANCIAL STATEMENT
BALANCE SHEET
in EUR
Explanation
ASSETS
A.
B.
C.
D.
E.
F.
G.
H.
I.
K.
L.
M.
Intangible Assets
Non-current Assets Held for Sale
Investment Property
Investment in group companies and associates
Investments:
1. Into loans and deposits
2. In possession until maturity
3. Available for sale
4. Evaluated by their fair value
Assets of the insured persons, assuming
investment risk
The amount of technical provisions transferred to
reinsurers
Receivables
1. Receivables from direct insurance operations
Receivables from co-insurance and
2.
reinsurance
3. Other receivables
Other assets
B.
C.
D.
E.
J.
K.
Equity
1. Share capital
2. Capital reserve
3. Profit reserve
4. Revaluation reserve
5. Retained net profit and loss account
6. Net profit and loss account of the financial year
1. Unearned premium reserve
2. Mathematical reserves
3. Claims reserve
4. Other technical provisions
Technical provisions in favor of life insured that
assume investment risk
Other reservations
1. Liabilities from direct insurance operations
2. Liabilities from co-insurance and reinsurance
3. Current tax liabilities
Other liabilities
on
31.12.2011
830,361,653
760,989,148
1
2
3
17
4
5
6
5,857,392
14,230,597
277,587
429,176
486,967
240,000
528,835,088
68,838,595
150,661,307
299,757,300
9,577,885
6,809,471
15,245,340
0
687,302
546,368
190,000
510,405,586
92.941.507
151.655.900
241.686.813
24.121.366
7
121,875,865
107,045,539
8
66,277,201
60,428,019
9
49,550,287
37,756,946
53,493,554
40.876.477
8,391,412
11.011.185
3,401,922
6,193,728
36,107,765
1.605.891
5,784,249
353,720
830,361,653
760,989,148
99,109,077
55,426,291
2,811,907
13,794,516
6,929,109
12,072,970
8,074,284
7,000,000
559,003,436
72,823,670
244,441,033
233,203,839
8,534,894
87,539,613
55.426.291
2.811.907
23.500.341
-1.867.823
287.125
7.381.772
7,000,000
520,422,350
74.920.388
233.907.792
206.180.753
5.413.418
15
125,131,712
101,805,961
16
18
5,191,209
19,167,513
11,572,044
6,988,905
606,563
15,758,707
4,851,153
23,322,480
11.858.267
10.444.939
1.019.275
16,047,590
10
11
A.
on
31.12.2012
12
13
14
19
Notes to the financial statement items are an integral part of the financial statements.
83
PROFIT AND LOSS ACCOUNT
in EUR
A.
NET INSURANCE PREMIUM REVENUE
Explanati
on
20
1.1. to
31.12.2012
1.1. to
31.12.2011
219,335,368
210,302,087
- Charged gross premium
263,910,167
263,243,887
- Charged premium given in reinsurance and co-insurance
-45,491,280
-51,905,813
916,482
-1,035,988
B.
- Modification of unearned premium reserves
INCOME FROM INVESTMENTS INTO AFFILIATED
COMPANIES
21
0
126
C.
INVESTMENT INCOME
22
29,968,397
24,268,062
D.
OTHER INSURANCE INCOME
23
10,575,671
11,133,402
10,161,177
10,614,954
Out of which:
- income from provisions
E.
OTHER INCOME
24
3,436,617
3,008,648
F.
NET CLAIMS CHARGES
25
141,164,085
129,903,266
- Charged gross amount of claims
144,531,871
134,635,191
- Charged shares of reinsurers and co-insurers
-24,783,263
-27,068,580
21,415,477
22,336,654
- Modification of claims reserves
MODIFICATION OF OTHER TECHNICAL
G.
RESERVATIONS
MODIFICATION OF TECH. RES. WITH ASSUMED
H.
INVESTMENT RISK
26
7,353,040
5,511,330
27
21,477,889
11,403,902
J.
BONUS AND REBATE CHARGES
28
75,927
11,351
OPERATING EXPENSES
29
72,256,994
73,685,575
22,178,474
25,226,106
4,739,750
5,472,691
K.
Out of which:
- Deferred acquisition costs
M.
INVESTMENT CHARGES
22
Out of which:
- Impairment of financial assets not measured by their fair
value through the profit and loss account
2,772,414
2,843,388
N.
OTHER TECHNICAL CHARGES
30
2,484,843
2,282,720
O.
OTHER CHARGES
31
6,248,993
5,802,318
P.
PROFIT AND LOSS ACCOUNT PRIOR TO TAXATION
7,514,532
14,639,171
R.
INCOME TAX
NET PROFIT AND LOSS ACCOUNT OF THE REPORTING
PERIOD
-202,482
4,082,096
7,717,014
10,557,075
Basic Net Earnings Per Share
0.62
0.93
Modified Net Earnings Per Share
0.62
0.93
S.
32
84
STATEMENT OF OTHER COMPREHENSIVE INCOME
Explanation
in EUR
1.1. To 31.12.2012
1.1. to 31.12.2011
I.
NET PROFIT/LOSS OF FINANCIAL YEAR AFTER TAXATION
7,717,014
10,557,075
II.
OTHER COMPREHENSIVE INCOME AFTER TACATION
(1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9)
8,796,931
-4,967,437
10,486,671
-6,209,297
4.
9.
III.
Net profit/loss from re-measurement of financial asset, available for sale
12
4.1.
Profit/loss recognized in revaluation surplus
8,132,810
-4,358,646
4.2.
Revaluation surplus profit/loss transfer into the profit and loss account
2,353,861
-1,850,651
-1,689,740
1,241,859
16,513,945
5,589,637
Tax from other comprehensive income
TOTAL COMPREHENSIVE INCOME OF THE FINANCIAL YEAR AFTER TAXATION (I + II)
85
CASH FLOWS STATEMENT
in EUR
Operating cash flow
Items of profit and loss account statement
1.
Balanced net insurance premiums for the period
2.
Investment income (excluding financial income), financed by:
- Technical Provisions
- other sources
Other operating incme (except for revaulation and without reduction
3.
of reserves)
4.
Balanced net claim amount for the period
5.
Balanced costs of bonuses and rebates
Net operating costs, excluding depriciation costs and without
6.
changes in deferred acquisition costs
Investment charges (excluding depreciation and financial charges),
7.
financed by:
- technical sources
- other sources
Other operating charges, excluding amortization (except for
8.
revaluation and without allocation of provisions)
Income taxes and other taxes that are not included in operating
9.
charges
Changes in net current assets (insurance claims, other receivables
b)
other assets, deferred receivables and tax liabilities) of operating
items of balanced sheet.
1.
Opening less closing receivables from direct insurance
2.
Opening less closing receivables from reinsurances
3.
Opening less closing other receivables from (re)insurance operations
4.
Opening less closing other receivables and assets
5.
Opening less closing deferred tax assets
6.
Opening less closing stocks
7.
Opening less closing debts from direct insurances
8.
Closing less opening debts from reinsurances
9.
Closing less opening other operating debts
10.
Closing less opening other liabilities (excluding unearned premiums)
11.
Closing less opening deferred tax liabilities
c)
Operating net receipts or net expenditures (a + b)
B.
Investment activities cash flows
a)
Investment activities receipts
1.
Interest receipts relating to investment activities and to:
- investments, financed from technical provisions
- other investments
2.
Receipts from dividends and other profit shares relating to:
- financed from technical provisions
- other investments
3.
Receipts from disposal of intangible assets, financed from:
- other sources
4.
Receipts from disposal of tangible fixed assets, financed from:
- other sources
5
Receipts from disposal of long-term fixed assets, financed from:
- other sources
b)
Investment activities expenditures
1.
Expenditures from acquisition of intangible assets
2.
Expenditures for acquisition of tangible fixed assets, financed from:
- other sources
Expenditures for acquisition of long-term financial investment,
3.
financed from:
- other sources
Expenditures for acquisition of short-term financial investment,
4.
financed from:
- other sources
c)
Investment activities net receipts or net expenditures (a + b)
Financial cash flows
a)
Financial receipts
1.
Paid capital receipts
b)
Financial expenditures
1.
Interest expenditures
4.
Expenditures for payment of short-term financial liabilities
5.
Expenditures for payment of dividends and other profit shares
c)
Financial net receipts or net expenditures (a + b)
C.
Finances and their equivalents at end of period
x)
Financial account for the period (sum of expenditures Ac, Bc and Cc)
y)
Finances and their equivalents at the beginning of period
Explanatio
n
A.
a)
11
1.1. to
31.12.2012
1.1. to
31.12.2011
15,639,650
219,335,368
1,236,485
1,085,959
150,526
18,763,335
210,302,087
4,401,467
4,205,726
195,740
13,993,669
14,054,809
-141,164,085
-75,927
-129,903,266
-11,351
-68,524,198
-69,540,618
-2,942,023
-2,910,489
-3,033,440
91,417
-2,910,499
10
-3,971,223
-3,519,982
-2,248,416
-4,109,321
887,577
-1,472,249
3,119,531
2,619,773
0
-2,249,643
-1,156,921
44,126
-286,222
-3,456,033
2,722,584
0
-469,618
16,527,227
2,508,077
9,914,485
-2,176,521
17,291,086
602,158,069
22,057,807
21,203,112
854,695
300,962
204,670
96,292
1,120,905
1,120,905
185,032,874
179,909,521
5,123,353
393,645,521
375,597,537
18,047,985
-575,400,801
-305,933
-1,595,266
-1,595,266
355,603,228
19,738,087
19,535,461
202,626
290,584
179,110
111,473
89,789
89,789
127,304,030
124,085,896
3,218,134
208,180,739
145,678,231
62,502,507
-376,556,845
-155,622
-3,355,594
-3,355,594
-218,970,625
-152,414,134
-197,607,066
-21,363,558
-144,893,978
-7,520,157
-354,528,977
-220,631,495
-331,757,382
-22,771,595
26,757,269
-157,989,384
-62,642,111
-20,953,617
0
0
-7,530,449
-533,757
-3,011,466
-3,985,226
-7,530,449
36,107,765
35,754,045
353,720
12,800,199
12,800,199
-9,249,983
-532,301
0
-8,717,682
3,550,216
353,720
-112,314
466,035
-629,830
-588,104
-7,038
-1,294,546
-9,642,938
444,165
86
STATEMENTS OF CHANGES IN EQUITY
III. Profit reserve
I. share
capital
in EUR
II. Capital
reserve
1.
1.
Legal and
statutory
2.
4.
For credit
risks
6.
Other
reserves
from profit
9.
IV. Revaluation
reserve
10.
V.
Retained
net profit
and loss
account
11.
VI. Net
income
Net
profit/loss
of financial
year
12.
EQUITY
TOTAL
(From 1 to
13)
14.
2,a
2,b
7,
INICIAL BALANCE ON 1.1.2012
Total comprehensive income of the financial year
after taxation
Net profit and loss account of the financial year
Other comprehensive income
Payout (balance) of dividends
8,
Decrease of other reserves in favor of retained profit
0
0
0
0
10,
Formation of provisions for unused employees leave
Formation and use of provisions for credit risks and
disasters claims
Transfer of statement from previous year to deferred
profit and loss account
FINAL BALANCE on 31.12.2012
(1+2+3+4+5+6+7+8+9+10+11)
0
0
0
0
0
0
0
9,348,555
0
0
0
0
-357,270
0
0
0
0
0
0
0
0
0
0
0
7,381,772
-7,381,772
0
55,426,291
2,811,907
11,085,258
2,709,258
6,929,109
12,072,970
8,074,284
99,109,077
0
0
0
0
0
0
12,072,970
8,074,284
20,147,254
42,626,092
2,811,907
8,525,219
2,451,265
9,348,555
3,099,615
4,152,726
4,852,080
77,867,459
0
0
0
0
0
-4,967,437
0
10,557,075
5,589,637
0
0
12,800,199
0
0
0
0
0
0
0
0
0
0
0
2,560,040
0
0
0
0
0
0
0
0
0
0
0
-4,967,437
0
0
0
0
0
0
-8,717,682
0
0
0
0
0
0
0
-4,967,437
12,800,199
-8,717,682
0
0
0
0
0
0
0
0
-615,263
0
0
0
0
0
0
0
4,852,080
-4,852,080
0
55,426,291
2,811,907
11,085,258
3,066,528
9,348,555
-1,867,823
287,125
7,381,772
87,539,613
2,
11,
12,
13,
Distributable profit 2012
1,
2,
2,a
2,b
3,
7,
8,
10,
11,
12,
INICIAL BALANCE ON 1.1.2011
Total comprehensive income of the financial year
after taxation
Other comprehensive income
Entry (or payment) of new equity
Payout (balance) of dividends
Allocation of net profit to profit reserves
Formation and use of provisions for credit risks and
disasters claims
Transfer of statement from previous year to deferred
FINAL BALANCE on 31.12.2011
(1+2+3+4+5+6+7+8+9+10+11)
55.426.291
2.811.907
11.085.258
3.066.528
9.348.555
-1.867.823
287.125
7.381.772
87.539.613
0
0
0
0
0
8.796,931
0
7,717,014
16,513,945
0
0
0
0
0
0
0
0
0
0
0
0
0
8,796,931
0
0
0
-3,985,226
0
0
0
0
8,796,931
-3,985,226
0
9,348,555
0
0
0
-959,256
0
-959,256
87
INTRODUCTORY NOTES AND ACCOUNTING POLICIES
The presented annual financial statements relate to the yearly period ending on 31 December 2012.
The financial report period of ZM coincides with the calendar year. The data for the comparative period
(2011) were revised. The financial statement audit was performed by Deloitte, d.o.o.
Complete financial statement, presented in the annual report of ZM, contains items sufficiently
important to influence the estimates and decisions of the intended audience.
16
ZM Management Board approved unrevised financial statement on 30 January 2013 .
CONSOLIDATION
ZM issues group financial statements for the ZM Group. The group comprises ZM, Vivus d.o.o., its
dependent company, and Ornatus d.o.o and Ornatus KC d.o.o.., indirectly independent compananies.
The European Commission took a stand that a company within European Union, which chooses to
issue separate financial statements or for which the preparation of separate financial statements in
accordance with International Financial Reporting Standards (IFRS) as adopted by the EU is required,
is allowed to prepare and publish separate financial statements independent from the group financial
statements even prior to the publishing of group financial statements when the national legislation and
relevant European Union directives demand or allow such separate publication.
When such separate publication is allowed, as is the case in Slovenia, the effect of the European
Union Committee standpoint is such that those ZM are excluded from the IAS 27 Consolidated and
Separate Financial Statements, however they must list the related group financial statements within
their separate financial statements. In accordance with this, ZM that publish their separate financial
statements prior to group financial statements and thus cannot publish statements in accordance with
IAS 27 provisions can still state that they have prepared their separate financial statements in
accordance with IFRS as adopted by the EU.
Group financial statements and notes to the items of consolidated financial statements are prepared in
accordance with the International Financial Reporting Standards, adopted by the European Union, and
are in force for the reporting periods, starting with 1 January 2013. The consolidated report of the
Zavarovalnica Maribor Group will be publicly available on the ZM`s website www.zav-mb.si and at the
ZM`s headquarters -- Zavarovalnica Maribor d.d., Cankarjeva 3, 2507 Maribor.
STATEMENT OF COMPLIANCE
The financial statements of ZM including the explanatory notes are prepared in accordance with
requirements of the International Financial Reporting Standards (hereinafter IFRS) adopted by the
International Accounting Standards Board (IASB) and in compliance with interpretations of the
International Financial Reporting Interpretations Committee (IFRIC) adopted by the European Union
(hereinafter: EU).
Standards and notes in force for the period of reporting:
IFRS 7 - Financial Instruments: disclosures: Transfer of financial assets
The EU adopted the standard on 22 November 2011 and is effective as of annual periods starting on 1
July 2011 or later. OMRS published them on 13 March 2012. The modification defines, how should a
user who uses IFRS for the first time account the state loads with the interest rate smaller that the
market interest rate in transition to IFRS. It also introduces an exception for the use of IFRS for the
past cases that enables the users, who are accepting IFRS for the first time, the same relief as for
already existing draftsmen of financial statements according to IFRS enabled by the introduction of the
requirement in IAS 20- Accounting of government supports and disclosure of government support in
2008.
Stated standard modification did not cause any modification of ZM accounting policies.
16
The date of approval of unrevised financial statements for external reporting
88
Standards and notes issued by OMRS and accepted by the EU that are yet to come into force
IFRS 10 - Consolidated Financial Statements
The EU adopted the standard on 11 December 2012 and is effective as of annual periods starting on 1
January 2014 or later. OMRS issued the standard 10 on 12 May 2011. This standard substitutes
suggestions regarding consolidation in IAS 27 Consolidated and Separate Financial Statements and in
SOP 12 Consolidation – companies for special purposes with the introduction of unified consolidation
model for all companies based on control, regardless of the nature of the company in which we invest
(e.g. is the company monitored by the voting rights of the investors or by other contracting
agreements, as it is common in the companies for special purposes). According to IFRS 10
management is based on whether an investor has 1) power over business in which he invests; 2)
exposure or rights to variable returns from his partnership with the companies in which he invest; and
3) the opportunity to use his power over the company in which he invest, to influence the amount of
return.
IFRS 11 – Joint regulations
January 2014 or later. OMRS issued the standard on 12 May 2011. IFRS 11 introduces new
accounting requests for joint regulations that substitute IAS 31 Interests In Joint Ventures. The
possibility to use a proportionate consolidation method when balancing joint ventures is removed.
IFRS 11 also abolishes joint assets only to distinction between joint operation and joint ventures. A
joint operation is a joint regulation, where parties with joint management have the right to assets and
are bound to liabilities. Joint ventures is a joint regulation, where parties with joint management have
the right to net assets.
IFRS 12 - Disclosure of Interests in Other Entities
January 2014 or later. OMRS issued the standard on 12 May 2011. IFRS 12 will require improvement
of disclosure on consolidated and non-consolidated companies that are controlled by the company.
The goal of IFRS 12 is to request information that the users of accounting statements will be able to
estimate the base of control, any limitation of consolidated assets and liabilities, risk exposure from the
control of non-consolidated structured companies and involvement of non-controlling equity owners in
activities of consolidated companies.
IFRS 13 - Fair Value Measurement
January 2013 or later. OMRS issued the standard on 12 May 2011. IFRS 13 defines fair value,
suggest, how to define fair value, and requests disclosures regarding measurements of fair values.
However, IFRS 13 does not alter requirements regarding which items should be measured or
disclosed by their fair value.
IAS 27 – Separate Financial Statement (modified in 2011)
January 2014 or later. OMRS issued the standard on 12 May 2011. Requirements regarding separate
financial statements are unchanged and included in the amended IAS 27. IFRS 10 substituted other
parts of IAS 27.
IAS 28 – Investments in Associated and Joint Ventures (modified in 2011)
January 2014 or later. OMRS issued the standard on 12 May 2011. IAS 28 is amended in accordance
with the issue of IFRS 10, IFRS 11 and IFRS 12.
Amended IFRS 1 - First use of IFRS - high hyperinflation and removal of agreed dates for user who
are using IFRS for the first time.
The EU adopted the standard modification on 11 December 2012 and is effective as of annual periods
starting on 1 January 2013 or later. OMRS issued them on 20 December 2011. The first modification
substitutes the reference to the agreed date “1 January 2004” with “the date of transition to IFRS” and
thus abolishes the need for the companies, using IFRS for the first time, to change recognition
elimination, which occurred before the date of transition to IFRS. The Second modification suggests,
how the company should continue with existing financial statements in accordance with IFRSs after
the period, when the company did not comply with IFRSs, because its functional currency was
subjected to a high hyperinflation.
89
Amended IFRS 7 - Financial Instruments: Disclosures – Offsetting Financial Assets and Liabilities
The EU adopted the standard modification on 13 December 2012 and is effective as of annual periods
starting on 1 January 2013 or later. OMRS issued the modifications on 16 December 2011.
Modifications require information on all recognized financial instruments, which are offsetted in
accordance with Paragraph 42, IAS 32. The modifications also require disclosure of information on
recognized financial instruments subjected to executable offsetting umbrella contract and similar
agreements, even if they are not offsetTed according to IAS 32.
Amendment to IAS 1 – Presentation of Financial Statement – Presentation of Items in the Second
Comprehensive Income
The EU adopted the modifications on 5 June 2012 and is effective as of annual periods starting on 1
July 2012 or later. OMRS issued the modifications on 16 June 2011. The modifications require that
ZMs that are preparing financial statements in accordance with IFRS collect items inside the second
comprehensive income that is possible to reallocate within profit and loss account statement.
Modifications also confirm existing requirements for the items in the second comprehensive income
and profit and loss account to be presented either as united statement or as two successive
statements.
Amendments to IAS 12 – Income Tax – Deffered Tax – Recovery of Assets
The EU adopted the modifications on 11 December 2012 and is effective as of annual periods starting
on 1 January 2013 or later. OMRS issued them on 20 December 2010. IAS 12 requires that the
company measures the deffered tax for assets according to the fact whether the company expects
recovery of book value of assets trough use or sale. If the asset is valued by its fair value in
accordance with IAS 40 “Investment Properties”, it is hard or subjective to evaluate, if the assets will
return trough use or sale. The modification provides a practical solution to the problem by introducing
an assumption that the recovery of book value normally returns with sale.
Amendments to IAS 19 – Employee Benefits – Improvements of Balancing Post-employment
Benefits
The EU adopted the modifications on 5 June 2012 and is effective as of annual periods starting on 1
January 2013 or later. OMRS issued them on 16 June 2011. The modifications bring significant
improvements with: (1) eliminating possibility to delay recognition of profit or loss, known as “belt
method”, which improves the comparability and reliability of the presentation; (2) rationalization of
presenting modifications in assets and liabilities from particular earnings programs, including the
requirement for presentation of remeasurement in the second comprehensive income, and separation
of these modifications from the modifications, which many consider as the consequence of daily
operations; (3) improvement of requirements for disclosure of particular earning programs, which offer
better data on features of those programs and risks that the companies are exposed to because of
their collaboration in these programs.
Amendments to IAS 32 - Financial Instruments: Presentation – Offsetting Financial Assets and
Liabilities
The EU adopted the modifications on 13 December 2012 and is effective as of annual periods starting
on 1 January 2014 or later. OMRS issued them on 16 December 2011. The modifications provide
notes on the use of the offsetting rules and focus on the four main fields: (a) the meaning “has a
legally enforceable right to set off the amounts”; (b) use of simultaneous realization of cash value and
offsetting; (c) netted amount of warranty; (d) accounting unit for the use of offsetting requirements.
IFRIC 20 – Stripping Costs in the Production Phase of a Surface Mine
Adopted by EU on 11 December 2012 and is effective as of annual periods starting on 1 January 2013
or later. OMRS issued them on 19 October 2011. The explanation states that the costs related to
“removing activity” have to be charged as an addition to the existing asset or its improvement, and that
this component has to be depreciated in the period of expected useful life span of a recognized
component of the mine that become more accessible as a consequence of removal (with the use of
production method units, except other method is more appropriate).
The company evaluates that the introduction of these standards, amendments of existing standard
and explanations in the period of initial use will not have an important influence on the financial
statement of ZM.
Standards and notes issued by the OMRS, but not yet adopted by the EU
90
Currently, IFRS as adopted by the EU are not significantly different from the rules adopted by the
OMRS, with the exception of standards, amendments of the standards and explanations outlined
below, which on the date of the approval of the financial statements for external reporting are not
confirmed for use.
IFRS 9 - Financial Instruments
The standard is effective as of annual periods starting on 1 January 2015 or later.
Amendments of IFRS 1 - First use of IFRS - Government Loans
Standard modifications are effective as of annual periods starting on 1 January 2013 or later.
Amendments of IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures –
Mandatory date of enforcement and disclosure of transitions.
Amendments of IFRS 10 Consolidated Financial Statement, IFRS 11 Joint Regulations and IFRS
12 Disclosure of INterest in Other Entities – Transition Notes, are effective as of annual periods
starting on 1 January 2013 or later.
Amendments of IFRS 10 Consolidated Financial Statement, IFRS 12 Disclosure of Interest in
Other Entities and IAS 27 Separate Financial Statements – Investment Entities, are effective as of
annual periods starting on 1 January 2014 or later.
Amendments of different standards – Improvements of IFRS (2012) arising from the annual project for
improvement of IFRS, issued on 17 May 2012 (IFRS 1, IAS 1, IAS 16, IAS 32, IAS 34) with the
intention to abolish all differences and to additionally explain contents, shall be effective as of 1
January 2013 or later.
Accounting for the purpose of hedge in regards to financial assets and liabilities portfolio, whose rules
EU has not adopted yet, is still unregulated.
The company estimates that the use of accounting for the purpose of hedge in regards to financial
assets and liabilities portfolio in accordance with the requirements of IAS 39 Financial Instruments_
recognition and measurement should not have an important influence on the financial statement of the
company, if it would be used on the balance sheet date.
ZM still examines the effects of optional standard and explanations. At this moment it has not yes
assessed the effects of new requirements. ZM will use new standards and explanations in accordance
with the requirements in case EU adopts them.
THE PROCEDURE FOR ADOPTING THE ANNUAL REPORT
The annual report of ZM is adopted by the Management Board that presents it to the Supervisory
Board for approval. The Management and Supervisory Board also decide on the net profit use for
forming reserve of ZM in accordance with the Companies Act. Such use of profit is included into the
current year statements while the distribution of profit is in the domain of the ZM Assembly.
FUNCTIONAL AND REPORTING CURRENCY
Reporting and at the same time also functional currency of ZM is euro. The amounts in the financial
statements are rounded to 1 euro. Due to rounding of data some differences in sums might appear.
TRANSFER OF EVENTS
The transactions in foreign currency are calculated into the functional currency on the day of the deal
and are calculated according to the reference conversion list of the European Central Bank, published
by the Bank of Slovenia. ZM transfers such calculated exchange rate differences directly into its profit
and loss account statement.
ZM calculates the assets and liabilities items, nominated in foreign currencies, with the use of
exchange rates from the Bank of Slovenia reference list. Currency rate differences from the
calculations are recognized in the Profit and Loss Account balance.
91
MEASUREMENT BASE
Financial statements are prepared based on the original value, except the following assets and
liabilities that are presented by their fair value:
•
•
Financial assets according to their fair value trough the profit and loss account, and
financial assets available for sale.
The methods used to measure fair value are presented in more detail below, in the presentation of
accounting policies for financial investments.
THE USE OF ASSESSMENTS AND AUDITS
When creating the accounting statements, the accounting has to, in accordance with IFRS, present
the audits, estimates and assumptions that influence the use of guidance and the accounted values of
assets and liabilities and income and charges. The estimates and assumptions base on previous
experience and many other factors that are considered in the given situation as reasonable and based
on which we can present the opinion on carrying amount of assets and liabilities that are not
immediately obvious in other sources. The actual results may deviate from those estimations.
The estimates and assumptions are reviewed regularly. The amendments of accounting estimates are
recognized only for the period in which the estimate is amended and if influences the related period
only, or for the period of amendment and for the following years if the amendment influences the
current as well as the following years.
Information on important estimates and assumptions that management used for preparation of
financial statements are technical provisions and financial investments.
The liability estimate of claims arising from insurance contracts is one of the most crucial accounting
estimates. The insurance company must consider the uncertainty at estimating the liabilities which it
will have to pay out as the result of the claims. The suitability test for claim liabilities was performed to
ensure the suitability of contractual obligation disclosure. The insurance company has considered the
best possible estimate of future cash flows, adjustment and administrative expenses and investment
income with which the claim liabilities are being covered. To assure the suitability of stated contractual
obligations the insurance company performed a suitability test on the day of balance. The test was
performed based on the use of the best estimate of future cash flows, estimates of administrative
expense and financial profits, arising from assets intended for liability cover. The possible deficit in
liabilities would be charged to the profit and loss account.
The total claims reserve calculation is based on estimates and assumptions of the final development
of the arisen claims. The claims reserve for registered claims is based on estimates of the expected
value payments of registered claims. The estimates are empirically defined with inclusion of suspected
future trends (inflation, service expense inflation, change in legislation, etc.).
The calculation of the claims reservation for arisen and unreported claims (IBNR – Incurred But Not
Reported) is based on the estimation of number and amount of claims that already occurred but were
not yet reported and that were in the time of calculation still unknown to the insurance company. The
insurance company defines the IBNR claims estimation based on the study of the previous claims
activities with the use of various life assurance statistical methods. The insurance company assumes
that the claims development will realize similarly in the future as it has in the past and also considers
the noted trends and deviations. When calculating the claims reserve we also prepare estimations for
future recourse and estimates for the level of future claims handling expenses. The suitability of the
used assumptions and estimations is checked periodically and new findings are used with the next
evaluation. The methodology for the calculation of claims reserve is closely presented among
accounting policies used for the calculation of claims reserve and in the Risk Management chapter description of risks from technical provisions.
The calculation of fair value of financial investments, where fair values are not available at the active
capital market, is calculated on the basis of several assuptions. Possible changes of those
assumptions can have an important impact on the estimation of the fair value and possible
92
requirement for impairment of asset. Accounting policies that the insurance company uses to define
fair value are closely presented among accounting policies of the insurance company for the financial
investments.
THE OPERATIONS REVISION BY THE CONTROLLER
On 7 May 2012 ZM received a Order to eliminate violations identified in the revision procedures of the
controller. The controller ordered ZM to improve control procedures in the area of control of agents
who underwrite insurances for ZM trough contract agencies. ZM can assign internal number to
insurance agents who underwrite insurance contracts for ZM and have a controller`s authorization to
perform operations of insurance agent. ZM established additional internal controls and internal records
in ordered deadline and thus eliminated violations. It also reported the elimination of violations to the
controller.
The audit of company operations started in October 2010. The supervisor (Insurance Supervision
Agency) started the audit together with the Bank of Slovenia inspectors. The purpose of the audit was
to review all operations with affiliated persons of ZM in 2009 and 2010 and to perform review of
procedures for underwriting life insurance through the agents network in 2010. The audit concluded at
the end of 2010 and on 5 January 2012 the audit report was issued. On 9 February 2012, the
Insurance Supervision Agency notified ZM that it was going to issue a decision according to which
only agents that meet all legal conditions for underwriting insurance will be able to perform operations
for agencies. In 2012 no other inspection supervisions of ZM operations were performed.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting policies presented hereinafter are consistently applied by the ZM in all periods indicated in
enclosed annual financial statements.
Intangible Assets
Intangible assets are stated at cost less accumulated depreciation and any impairment losses. The
acquisition cost includes the purchase price and any costs directly attributable to the acquisition. ZM
uses the Acquisition Cost Method for its accounting policy of measuring intangible assets according to
their recognition. The intangible assets are thus accounted by their acquisition cost less depreciation
and impairment losses.
Subsequent expenditure related to intangible non-current assets is recognized 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.
ZM balances the depreciation of intangible assets according to the straight-line depreciation method.
The depreciation rate of intangible assets depends exclusively on the useful life of the assets. ZM
starts with asset depreciation when the asset is ready for use. All intangible assets in the company
have their limited useful life.
In the reporting period, the following depreciation rates were applied:
o
o
software licenses
other intangible assets
o
o
20 to 50 percent
5 to 25 percent
Disclosed intangible assets are impaired when their book value exceeds their net replacement 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 recognized directly in the Profit and Loss
Account.
ZM also states non-current deferred acquisition costs, which represent contract commissions paid in
advance, under intangible assets. ZM will transfer them to expenses in the period, in which revenue
arising from premiums, based on which the ZM calculated deferred expenses, will be recognized.
93
Tangible capital assets are initially recognized as acquisition cost including directly attributable cost of
acquisition. Following initial recognition, the assets are 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 and is not depreciated.
Subsequent expenditure related to tangible assets is recognized as an operating expense in the
accounting period in which it incurred. Subsequent expenditure on an intangible asset incurring during
its use and increasing its future economic benefits is stated as an increase in acquisition cost.
Subsequent expenditure resulting in the extension of the useful life of a tangible capital asset is stated
as a reduction in the valuation adjustment.
Depreciation of plant and equipment of the ZM is calculated on a monthly basis by applying the
straight-line depreciation. ZM starts with asset depreciation when the asset is ready for use. The
depreciation of tangible assets ends on a date prior to the actual classification for sale or the
recognition annulment.
o
o
o
o
o
plant and buildings
parts of buildings of higher value
motor vehicles
other equipment
small inventory
o
o
o
o
o
3 percent
3 to 6 percent
20 percent
15 to 33.3 percent
30 percent.
Each year ZM estimates whether there are any signs of impairment of tangible capital assets. Such
events arise when their book value exceeds their net replacement value. In the event of impairment,
the carrying amount of the asset is decreased to its net replacement value. The decrease represent
loss due to impairment which ZM recognizes directly in the Profit and Loss Account.
As small inventory within the tangible capital assets ZM defines purchased assets similar or the same
to those already categorized as small inventory. In general only items of acquisition cost lower than
500 Euros, which contribute to improvement of working environment, where process are being
performed or are a result of constant modernization of office equipment but are not necessary for
execution of processes, are categorized as small inventory.
Small inventory of value up to 100 Euros is immediately registered as cost. The same goes for
inventory for which we justifiably believe that its use will not exceed one year, and for the inventory,
regardless of its value, that an individual employee receives for its daily use.
Investment Property
Investment property is property, held by ZM with the purpose of earning with rent or of long-term
investment appreciation or both. Subsequent to its initial recognition, investment property is valued by
ZM on the basis of the Cost Method model. The company thus records the investment property by its
acquisition cost, decreased by the depreciation and possible impairment.
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
3 to 3.3 percent.
ZM leases its investment properties. Most of the lease agreements are underwritten for definite period
of time. All lease agreements may be revoked at any moment. Revenue arising from lease
agreements is disclosed directly in the Profit and Loss Account under financial revenue proportionately
with lease duration.
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Investment property is impaired when its carrying amount exceeds its net replacement value. In the
event of impairment of investment property, carrying amount of such assets is decreased to its net
replacement value and, at the same time, expense arising from assets impairment is recognized
directly in the Profit and Loss Account.
Lease
Lease is a contractual relationship in which the lessor transfers the right to use the assets to the
lessee in return of financial payment or a series of payments for a specified period. The financial
lease is a lease where all important forms of risk and benefit related to the asset ownership are
transferred. With the financial lease the ownership right may or may not transfer to the other side.
Lease agreements signed by ZM do not fulfill the conditions entirely to be categorized as financial
leases. ZM thus recognizes the rent in case of a business lease as cost in the Profit And Loss
Account applying the straight-line depreciation during the complete lease period. When ZM acts as a
lessor, the assets spent for a business lease are recognized as assets in the balance sheet of ZM, and
the rent revenue is recognized equally during the complete lease period.
Investments
Financial investments of ZM are the most important part of its financial assets and, at the same time,
are 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 recognized as ZM’s financial asset
if there is an option of economic benefits related to it and it is possible to measure its acquisition cost
reliably. ZM conducts recognition of financial investments on the day of trading. The same goes for
the balance of regular sale of financial investment.
With regard to the accounts they are arising from, financial investments are categorized by their
recognition under one of the life insurance long-term business funds, or under property long-term
business funds, or as assets from available own fund of individual insurance groups.
ZM uses the unified valuation methods for valuating financial investments of the long-term business
fund, business fund and financial investments of its own free sources.
For the purpose of statement, the purchase or sale business for the same financial investments,
categorized into the same group of financial assets, are calculated by the FIFO method.
ZM categorizes its financial investments at the initial recognition according to their acquisition purpose,
time of possession and type of financial investment into one of the financial asset groups that define
their accounting balance and their measurement. Upon acquisition financial investments are also
classified in one of the following groups:
o
o
o
o
Financial assets measured according to their fair value through profit and loss account. This
group includes 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. ZM 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 profit and loss account statement for the current year
Financial assets available for sale. Financial investments available for sale are all the
remaining financial assets held by ZM for an indefinite period of time and which can be sold
due to market conditions, due to important loss events which cannot be foreseen, due to
investment structure, ensuring required structure of investments, operational needs or other
business reasons. ZM recognizes unrealized profits or loss arising from fair value change of
financial assets through the comprehensive technical account and includes them into the
revaluation surplus as a separate item of equity;
Loans are loans and deposits with banks with fixed or determinable payments not quoted on
an active market. ZM measures them at amortized cost by using the effective interest rate.
Financial investments in loans also include monetary deposits;
Financial assets in possession until maturity date. Into this group ZM categorizes those
financial investments with identified or identifiable payments and identified maturity date that
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ZM certainly intends to and is able to possess until maturity date. ZM measures them at the
amortized cost method with the use of effective interest rate.
o
o
o
o
ZM does not use derivative instruments for the purpose of hedge.
With the initial recognition of financial investment ZM recognizes their fair value. ZM adds to
the initial recognized value the operation expenses (stock market provision, stock broker
provision, CSCC expenses, possible interest accruing during purchase or sale) that arise
directly from purchase or lease of the financial investment. An exception is financial
investments categorized at recognition as financial assets measured by their fair value
through the profit and loss account where the operation costs are not included into the initial
recognition of the financial investment. ZM recognizes them directly as charge under
investment costs in profit and loss account.
Any subsequent measurement of financial investments of ZM depend on their categorization
at recognition and can be made according to their fair value or at the amortized cost, by the
effective interest rate method.
The valuation of financial investment fair value depends on market data availability, based on
which ZM can evaluate the fair value. ZM categorizes the financial investments into three
levels according to its fair value valuation. Within each level the fair value is valuated as:
• 1. rd level: The financial investment fair value is the same as its market value, valid for
financial investments that quote at the active securities market.
• 2. rd level: The financial investment fair value is the same as its valuated fair value,
valid for financial investments that do not quote at the active securities market, and ZM
can evaluate their fair value based on the internal evaluation model in which it includes
data, available at the securities market (verifiable data);
• 3. rd level: The financial investment fair value is the same as its valuated fair value,
valid for financial investments that do not quote at the active securities market, and ZM
can evaluate their fair value based on the internal evaluation model in which it includes
data, unavailable at the securities market (unverifiable data).
For evaluation of fair value of financial investments that do not quote at the active securities market
ZM uses the following verifiable data from the securities market:
o
o
o
Values from the written instrument of a broker agency or a bank on the last known price at trading with
financial investments in traffic
values based on which the buyer would want to buy off complete or most of the financial investment
stock in the possession of ZM, based on a written offer or publication.
market interest rate, based on which the demanded profitability for debt security on evaluation date is
defined, considering maturity and credit rate or issuer quality rate. Based on this profitability the price
used for evaluation of debt security is calculated.
When evaluating the evidence for the purpose of establishing the needs for eventual impairment of an
investment or a group of investments available for sale, ZM evaluates whether it is a trend of a
significant and a long-term drop in the financial investment fair value.
A significant drop in fair value of the financial investment occurs when:
o
the fair value of the financial investment compared to its acquisition cost is lower by 40
percent, regardless of the duration of such drop.
A long-term drop in fair value of the financial investment is defined by:
o a period of up to nine months from the day of the first financial investment value drop under its
acquisition value and the value remained below its acquisition value for the complete period of
nine months.
o a period of at least two years passing from the day of the first investment value drop under its
acquisition value with the exception of occasional market fluctuations.
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ZM assesses the loans by the necessity of their impairment, based on the ascertained insolvency or
on payment delay individually according to the delay scale. If the loan is irrecoverable, ZM writes off
the loan in total.
Elimination of financial investment recognition
Recognition of financial investment as asset is eliminated, if the insurance company does not manage
the contract rights related to it. The insurance company does not control the contract rights anymore, if
the rights to use, defined in the contract, are worn out, extinguished or resigned.
Under disposal of financial investment financial revenues are recognized, if the net proceeds for
financial investment is higher that its book value, and financial expenditures. When selling or realizing
individual financial investment the difference between its net sale value and last book value is
corrected for appropriate part of revaluation adjustment of equity relating to it. The difference between
net sale value of financial investment and its initial book value or its corrected value due to the
strengthening is transferred among financial revenue or financial expenses.
Investments into Affiliated Companies and Associates
ZM valuates investments into affiliated companies and associates, which are in the ZM’s portfolio due
to reaching or increasing market share and with which ZM signed an agreement on underwriting for
ZM exclusively, in separate accounting statements by their acquisition value.
ZM valuates the investments into other affiliated companies and associates in separate accounting
statements in accordance with IAS 39.
For the needs of preparation of disclosure in financial statements ZM includes affiliated companies
and associates, members of the supervisory board, the audit committee and members of the
management board.
Coinsurer and Reinsurer Assets
Among the coinsurer and reinsurer assets ZM accounts the entitlements that arise from estimated
long-term liabilities from insurance agreements. ZM is entitled to them based on the underwritten
coinsurance and reinsurance agreements with which it transferred a share of insurance risk to
coinsurers and reinsurers.
ZM recognizes the assets based on received or own coinsurance or reinsurance balance, adjusted
with partners.
If there is objective proof that ZM will not be able to realize the estimated monetary flow, that
appertains to it in accordance to the underwritten agreement and that the influence of nonperformance
can be precisely measured, ZM impairs coinsurer and reinsurer assets.
As an objective proof, due to which ZM would impair interest in other insurance agreements, would
count the refusal or failure to settle the liabilities by coinsurer or reinsurer with reference to reinsurance
claims or retrocessions.
Receivables
ZM accounts the receivables in the balance sheet by their original value less impairment loss due to
revaluation of the receivables value. ZM accounts the initial receivables recognition based on the
issued policy, receipt or other authentic document (e.g. a confirmed coinsurance or reinsurance
balance).
Due to the fact that not all of the receivables will be paid or will be paid in time, ZM assesses their
impairment loss. Thus ZM creates revaluation and adjusts their carrying amount to the probability of
their realization. The receivables revaluation is recognized directly in the profit and loss account
statement under financial expenses for revaluation.
ZM performs the impairment of receivables towards the insured persons at each quarterly reporting
based on the movement of the receivables towards the insured persons in previous periods, and at
the end of the year based on new recalculations for cumulative three-year period.
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The impairment towards the insured persons from the insurance business of property insurance is
performed based on individual assessment for the large insured whose yearly invoiced gross premium
exceeds 500,000 Euros. Individual assessment is performed also in case of accounted impairment of
economic conditions of operations in certain sectors, major financial problems of companies, breach of
contract or nonperformance in payoffs. For other receivables a flat-rate (group) impairment is
performed.
Individual assessment of fair, i.e. collectable value of receivables arising from insurance business is
carried out based on the estimation of financial standing and solvency of the insured persons based
on credit rating report, type and scope of receivables insurance towards individual insured and
fulfillment of his obligations towards ZM in previous periods.
Flat rate (collective) assessment of fair, i.e. collectable, value of receivables arising from insurance
business is calculated by ZM based on consideration of receivables structure towards the insured
persons with similar credit risk. Indication of the necessary impairment is supported by the fact that the
amount of paid out premium is always lower than the amount of invoiced premium. The rate of
premium non-payment is established on the basis of a three-year average. The rate regarding the
balance of receivables is calculated as potential impairment, whereby the receivables with maturity
longer than 24 months are fully impaired (100 per cent impairment). ZM calculates the average threeyear rate of written-off receivables and receivables declared in receivership separately. For rates
calculated in this manner ZM conducts impairment of receivables balance within 24 months. ZM
corrects the total amount for the ex-post repayment coefficient. The coefficient of repayment
probability 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.
In previous reporting periods the insurance company recognized 100 percent impairment of due
receivables with maturity longer than 36 months. Important increase of unpaid receivables with
maturity longer than 36 months, which amounts 119.0 percent in the business sector and 9.0 percent
in the private sector and highly increased number of unsuccessful execution of old receivables are the
reason that the insurance company increased it complete impairment rate of all receivables from the
insurance business of property insurance, where the maturity of the payment is longer than 24
months. Recognized charges from the revaluation of receivables are thus 1,531,434 Euros higher that
they would be in the event that the insurance company would kept criteria for 100 percent impairment
from previous reporting periods. Receivables declared in receivership proceedings and receivables
which are due to their doubtful or disputed nature subject to legal dispute and which are at the same
time not covered by mortgage insurance are impaired fully.
Impairment of receivables from the insured persons arising from life insurances is carried out by ZM
after the insured persons failed to settle three installments of insurance premium. Receivables
adjustment is made for the full amount of unsettled receivables arising from insurance business (100
percent impairment).
Recourse recovery is recognized under assets if a substantial legal basis was obtained by ZM for such
recovery (final judicial execution, concluded written contract with the insurer or debtor, commencement
of the debt repayment by the insurer or debtor, credit insurance subrogation). Even in an event of
subrogation ZM recognizes the recourse recovery only after establishing the actual existence and/or
the physical presence of the debtor. Recognizing the principal of the recourse recovery among ZM’s
assets reduces its expenses for claims paid.
ZM conducts impairment of recourse recovery where it is reasonably assumed they will not be settled
or will not be settled in full. ZM revaluates the recourse recovery on the level of proceedings for
recourse, chargeable to financial expenses for revaluation. ZM conducts impairment of the principal,
interests and judicial costs recognized in the recourse receivable separately. Indication of impairment
of recourse recovery for the recourse principle appears if the overdue part of recourse recovery is not
settled within 60 days after the maturity date. Due to the nature of recourse recovery, ZM in this case
impairs the entire unpaid value of recourse principal, regardless of recourse recovery installments that
are not due yet.
Charged but unpaid interests (installment or on arrears) arising from recourse proceeding and
recognized as recourse recovery is fully impaired. Receivables arising from costs of recourse
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proceedings and recognized as recourse recovery which are not settled within 30 days after maturity
date are fully impaired by ZM.
Written-off receivables are recognized on the basis of an estimate regarding impossibility of
collectability 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 ZM’s financial expenses for revaluation.
Non-current assets held for sale are assets whose carrying amount will be recovered principally
through a sale transaction rather than through continuing use. The asset meets this condition when it
is available for immediate sale and its sale must be highly probable.
Non-current assets held for sale are measured by their carrying amount or fair value less selling costs
or depreciation until decommissioning, by the lower of the two values. All changes to non-current
assets held for sale are immediately recognized in the Profit and Loss Account. Non-current assets
held for sale are not subject to depreciation.
As monetary assets ZM defines cash in the central cash register, deposit money on ZM’s bank
accounts, cash on course representing cash transferring from the cash register to an appropriate bank
account, and cash equivalents. Cash equivalents are so called overnight deposits and non-current
deposits closed for a one-month period and receivables from checks to be cashed immediately.
Monetary assets are revaluated only in case of monetary assets in foreign currency if the currency rate
changes after the initial recognition. Currency rate differences are accounted for in the Profit and Loss
Account balance.
Equity
ZM’s equity consists of its equity capital (share capital), capital reserves, profit reserves, the retained
profit or loss, revaluation reserves and the profit and loss account of the financial period.
ZM does not have statutory defined capital shares for property or life insurances. Accounted allocation
is based on the ratio determined upon establishment of ZM in 1990 and content of later capital
increase of ZM.
Share capital is a liability towards owners and does not become payable until dissolution of the
company. It represents par value of paid-up ordinary shares denominated in EUR. Each no-par value
stock is issued on a name and enables one vote when realizing management (voting) rights. The
shares are issued in a non-materialized form and are managed by the Securities Clearing Corporation.
Capital reserves are formed and used in line with the Companies Act. Under capital reserves ZM
discloses only the amount of general revaluation adjustment of equity elimination which was made
during statutory revaluation of equity. Capital reserve may only be used in line with the Companies
Act that closely defines the conditions of capital reserve use for covering net loss from the ZM’s
assets. Capital reserve is not subject to distributable profit and allocation to ZM’s owners.
Profit reserves are recognized on the basis of:
o
o
o
o
the Insurance Act, which defines creation of credit insurance equalization provision
categorized under other profit reserves;
the Companies Act, which defines 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;
decision of the ZM’s Assembly adjudicating upon distributable profit.
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ZM does not have statutory addressed assigned profit reserves, however, it has established with the
statute that the amount of statutory reserves must reach 20 percent of the ZM’s share capital.
Considering that ZM does not have its own shares and does not need reserves for own shares, ZM
ensures with regard to disposition of profits in the order indicated below:
o
o
o
risk equalization reserves (equalization provision) 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
percent 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.
ZM can use profit reserves in accordance with Companies Act. With its use it is following the goal of
assuring capital adequacy of ZM prior to its allocation to ZM owners.
Capital reserve, profit reserve above legal limit and profit of previous years and of the current year can
be transformed into share capital by an Assembly decision.
Revaluation reserve arises solely from the revaluation effects of the financial assets, available for sale
by their fair value. In the balance sheet the accounted amounts of the revaluation reserve are
corrected for amounts of the referred tax. Mathematical reserves include part of the revaluation
reserve, recognized based on financial investments available for sale and in ownership of the longterm business fund of classic life insurance, as it belongs to the insured persons in accordance with
provisions of insurance agreements.
Earnings Per Share
When calculating net earnings per share, ZM takes into account all issued shares in all presented
periods. Weighted average of ordinary shares exercised in the accounting period is equal to the total
number of shares. When calculating the total number of shares, ZM considers the number of days
when individual shares were winning recognition as a multiplier of timely weighing regarding the share
of all accounting period days. Earnings per share are the same for all shares.
All shares issued by ZM are ordinary registered shares and there are no potential ordinary shares.
Subordinated Debt
Subordinated debt represents issued bonds valued at amortized cost.
As subordinated debt ZM accounts issued dematerialized registered bonds issued during one issuing,
with a coupon fixed rate.
Insurance Agreements
All concluded contracts were classified by ZM 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.
According to IFRS, an event is accidental when at the time of underwriting isn’t obvious if or when it is
going to happen and what the amount of the benefit is going to be. On the other hand an insurance
risk is materially high if the insurance event caused ZM’s payout of material additional sums, by any
scenario except those that do not include a trading component.
With classification of insurance contracts ZM categorized risks and their transfer and also stated the
existence of material additional sums with the help of risk sum definition for each insurance
agreement. In most insurance agreements the risk sum represents the benefit itself or the benefit less
the mathematical reserve in the insurance agreement.
Insurance Agreement Categorization
In regard to risk duration and determination of insurance conditions, ZM categorizes insurance
agreements into three main groups:
o Insurance agreements of property (non-life) insurance,
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o Insurance agreements of classic life insurance and
o Insurance agreements of life insurance, in which the insured person assumes investment
risk.
Within property insurance, ZM additionally identifies the following (homogeneous) types of insurance
contracts:
o Car insurance
o Liability insurance
o Agricultural insurance
o Property insurance
o Credit insurance
o Transport insurance
o Accident insurance
o Railway rolling stock insurance
o Other property insurance
In regard to fulfillment of uncertainty conditions for a loss event and material insurance risk, ZM
identified the following (homogeneous) types of insurance agreements within classic life insurance in
2012:
o Endowment life insurance with critical illness protection
o Endowment life insurance
o Endowment life insurance with agreed payout period
o Endowment life insurance with interval payouts of the maturity value
o Joint endowment life insurance
o Term life insurance
o Term life insurance with decreasing sum assured
o Whole life insurance
o Joint whole life insurance
In regard to fulfillment of uncertainty conditions for a loss event and material insurance risk, ZM
identified the following (homogeneous) types of insurance agreements within unit-linked life insurance
in 2012:
o Unit-linked life insurance with possible critical illness protection
o Single-premium unit-linked life insurance with additional accidental death insurance
Dismantling Insurance Contract Components
According to IFRS an agreement is an agreement between two or more parties with clear economic
consequences. To define an appropriate IFRS, an analysis of the economic point of view of the
agreement is necessary – thus an agreement can be presented as number of agreements for
accounting purposes.
Dismantling is required when the insurer can measure the components (including the integrated option
of redemption) and if the insurer’s accounting policy otherwise doesn’t require recognition of all rights
and liabilities.
Dismantling is prohibited when the insurer cannot measure the components. At dismantling the insurer
must use IFRS 4 for insurance component and IAS 39 for savings part.
ZM does not use this dismantling process.
Discretionary Participation
According to IFRS 4 the discretionary participation presents the contractual right to additional benefits
as addition to guaranteed benefits. Additional benefits must meet the following criteria:
o They need to represent a significant share of all contractual liabilities
o The amount and the time of annotation is in the hands of the insurer
o Contractually they are based on:
success of a certain group (or type) of agreements
realized/unrealized investment return in connection with certain groups of assets in
the ownership of the issuer or
profit and loss account of the company, long-term business fund, or third person that
issued the agreement.
In accordance with IFRS 4 an insurer can recognize the guaranteed component separately from the
discretionary participation. In this case the guaranteed component is categorized as liability and the
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discretionary participation as debt or as a separate equity item. Otherwise (if not recognized
separately) the whole contract is categorized as liability.
The insurer can recognize all received premiums as income and has no need to separate any part,
related to an equity component.
For companies that would according to IFRS 4 be categorized as financial instruments the
incorporation of discretionary participation influences the valuation of the whole agreement in the
following way:
o When the insurer classifies the discretionary participation as liability, he has to perform
the adequacy test of liabilities for the complete agreement, meaning he valuates the
complete agreement according to IFRS 4, the same as if categorized as insurance
agreement.
o When the insurer categorizes a part or the complete possibility of discretionary
participation as a separate equity component, the liability recognized for the complete
agreement cannot be lower than the result of the IAS 39 use for the assured component.
ZM signs insurance agreements in life insurance class that also include the possibility of discretionary
participation of the insured persons (e.g. insurance profit sharing). The profit sharing is defined in
general terms and conditions of life insurance in which it refers to the regulations on forming
mathematical reserve of life insurance. The discretionary rights included into the insurance
agreements are not valuated separately because the possible additional payout doesn't represent a
material share in the total payout by the insurance agreement. The liabilities arising from the
discretionary right are completely recognized as mathematical reserves.
Incorporated (Realized) Financial Instruments
The insurance company offers many possibilities or options in theory and practice. For each possibility
or option we have to ascertain whether a financial instrument has been realized and determine the
appropriate valuation manner. ZM applies the following procedure for that:
o If a financial instrument has already been realized – is it valuated by its fair value?
o If it's not – is it an independent component?
o If it is – is it tightly connected to the host agreement?
o If it's not – separate it from the host agreement and measure it by its fair value (in all
other cases listed above there are no additional valuation requirements).
The above is void if the realized financial instrument is an insurance agreement by itself.
For identification of an incorporated financial instrument tightly connected to the host agreement and
for fair value valuation IAS 39 is used.
Frequent possibilities or options that we come across in theory and practice are: holiday, sum insured
modification, premium modification, payout of advances, payout of partial buyoffs, payment of
additional premium sums, additional insurance, buyoff possibility, possibility of insurance
capitalization, payout of bonuses, one-time payouts or annuity payouts after the termination of
insurance period, possibility to discontinue the insurance and renew it, transfer of assets between
investment funds, modification of premium distribution key, prolongation or shortening of insurance
period, indexation.
Technical Provisions (Insurance Agreement Liabilities)
According to the provisions of Article 113 of the Insurance Act (Official Consolidated Text) ZM creates
technical provisions intended for covering of future insurance liabilities and possible risk-related losses
arising from insurance business performed by ZM for each performed insurance business separately.
ZM acknowledges the following technical provisions:
o Claims reserve
o Mathematical reserves
o Provisions for unearned premium
reserve
o Equalization provisions
o
o
Bonus and Rebate Provisions
Other technical provisions
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The technical provisions have to be formed in sum adequate for coverage of all liabilities from
insurance agreements that can be anticipated. An authorized actuary for property and life insurance,
appointed by the Management Board, inspects and comments the calculation of technical provisions
from insurance agreements and their adequacy at a yearly level.
Under obligations arising from insurance agreements, ZM accounts gross amounts of technical
provisions and technical provisions referring to insurance business arising from assumed coinsurance.
The share of obligations from insurance contracts which has been ceded in reinsurance and
coinsurance is accounted by ZM under assets.
Particularities of the source for formation and categorization of equalization provisions into accounts
are disclosed below.
Claims reserve
Claims reserve are established in the amount of estimated liabilities that ZM has to pay out based on
insurance agreements, with regard to which an insured event has occurred before the end of
insurance period, regardless of whether the insured event has been reported, including all the
expenses of the company arising from those agreements.
ZM’s claims reserve are composed of:
o Provisions for reported and unsettled claims outstanding (claims reserve according to
inventory),
o Provisions for claims incurred but not reported (IBNR),
o Annuity insurance liabilities deriving from liability insurance.
Provisions for reported claims that remain unsettled are those provisions that were already reported,
but remained completely or partially unsettled on the date of statement. They will be calculated for
each claim separately, based on the estimated value of expected claim.
Provisions for occurred but not yet reported claims are provisions for those claims that are assumed to
have already happened but were not yet reported. The amount of provisions for claims incurred but
not reported (IBNR) is calculated by ZM using two methods. According to the first method ZM first
estimates the total amount of required claims reserve on the day of estimation based on triangles of
liquidated claim development and the Chain Ladder Method. Such estimation of claims reserve
comprises both provisions for reported incurred claims as well as provisions for claims incurred but not
reported (IBNR). Provisions for claims incurred but not reported (IBNR) are calculated by ZM as the
margin between the amount of claims reserve based on triangle method and provisions for incurred
reported claims. The adequacy of claims reserve sum total is assessed with executed approaches
(Mack and Bootstrap Chain Ladder) that, regarding risk assumption, correspond to Solvency 2
Directive norms.
According to the second method, ZM 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.
In claims reserve ZM also discloses its liabilities for recognized annuities deriving from liability
insurance, if recognized to claimants on the basis of a final judicial decision, settlement or an
agreement between the claimant and the insurer.
Claims reserve are reduced by estimated expected recourses. The estimation is based on average
recourse movement during a five-year period and decreased by valuation costs. Valuation costs are
based on a three-year average of such costs share in gross claims.
Net claims reserve is the gross claims reserve increased by the claims reserve from the received
coinsurance and reduced by the claims reserve from the submitted coinsurance and reinsurance.
With the exception of annuity from liability insurance ZM does not discount claims reserve.
Mathematical reserves
Mathematical reserves for classic life insurance agreements are calculated as the difference between
short-term values of estimated future underwriting liabilities and the short-term estimated value of
future premiums that will be paid based on these insurances. For calculations the Zillmer method is
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used. The calculation is performed on the individual policy level in compliance with valid technical
bases of the group`s life insurance, whereby the technical insurance rate in the amount of 2.75 % is
used for all contracts. Negative values of mathematical reserves are set to zero. The difference
between the positive mathematical reserve and mathematical reserve is disclosed in assets as the
deferred insurance acquisition costs.
For insurance policies not having an equal reporting period and course of insurance year, ZM
calculates mathematical reserves using linear interpolation of the provision between two subsequent
years.
Mathematical reserves for additional entitlements have been established by ZM 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 estimated number and amount of payouts for insurances already
underwritten. The procedure of calculating such provisions is based on the estimation of future
payouts using the triangle method, also taking in consideration the number of births of children within
one year of insurance underwriting and within the insurance development year. Mathematical reserves
for traditional life insurance are increased by a share of distributed profit. Provisions for profit
attribution among the insured persons are based on the contribution method. The profit is attributed to
the insured persons annually at the end of the year for the previous business year. The profit
attributed to the insured persons is guaranteed. Mathematical reserves include also part of the
revaluation reserve, recognized based on financial investments available for sale and in ownership of
the long-term business fund of classic life insurance, as it belongs to the insured persons in
accordance with provisions of insurance agreements.
Mathematical reserves for life insurance assuming investment risk are established at the level of
individual policies as:
o
o
Mathematical reserves of units, corresponding to the product of the number of units and the
value of a unit, calculated per individual investment fund, and
Mathematical reserves 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 person’s personal account).
ZM forms additional mathematical reserves for insurance agreements from insurance class 21, where
some of the insurance entitlements are bound to units of financial instruments or mutual funds.
Unearned premium reserves
ZM forms unearned premium reserves for individual insurance agreement in the amount of the gross
insurance written premium pertaining to coverage during an insurance period after the cessation of the
accountancy period for which the provisions are calculated.
Provisions for unearned premium reserves are calculated individually for each insurance agreement
by the “pro rata temporis” method, except for the insurance agreements where the amount of the
insurance coverage is changing (decreasing of the sum insured in credit insurance).
Equalization provisions
ZM calculates equalization provisions in the credit insurance class. They are calculated in accordance
with provisions of Decision on detailed rules and minimum standards to be applied in the calculation of
technical provisions. The conclusion defines equalization provisions as liabilities and assumes their
recognition and stating among technical provisions and their formation and withdrawal through the
profit and loss account. Stated is not in compliance with IFRS, thus the insurance company performs
formation of equalization provisions through allocation of net profit, after the decision of the
management board or with a direct increase of net loss of the business year. Their formation is
accounted in the Statement of Changes in Equity.
To meet the provisions of IFRS the insurance company recognizes and accounts the equalization
provisions as a separate item of profit reservation in equity as expected by the Decision on annual
report and quarterly financial statements of insurance undertakings SKL 2009 (including the
amendment from the Official Gazette of RS 99/2010).
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All though the equalization provisions represent balanced equity item they are regarded as business
fund liability for which coverage from investment is required.
Bonus provisions are established in amounts of payouts, which the insured persons are entitled to
receive based on their right of profit participation deriving from their insurances, or other entitlements
based on the insurance agreement. Liabilities are calculated based on the rule of bonus
reimbursement as defined in insurance agreement. The share of bonuses within an insurance period
is calculated according to the “pro rata temporis” principle.
On the day of valuation, ZM discloses among other technical provisions, the provisions for unexpired
risks.
Provisions for unexpired risks are established by the company as additional provisions for insurance
groups where the estimated liabilities for unexpired risks exceed the established provisions for
unearned premium reserves. They are formed for coverage of claims and expenses related to the
existing insurance agreements that will occur after the accounting period and are not covered by the
unearned premium reserve. The amount of those provisions is a difference between the actual amount
needed for covering unexpired risks and the unearned premium reserves.
Additional provisions for unexpired risks are formed by the value of net amounts.
Financial Agreements
Financial agreements are those agreements that carry financial risk without material insurance risk.
ZM does not have any agreements underwritten that would fall into this category regarding the risk
assumption.
Provisions for Other Liabilities and Costs
Among other provisions ZM accounts 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 labor legislation in force.
The short-term value of anticipated cash flows is calculated on bases of the Euro Benchmark Curve
(source: Bloomberg) that incorporates German and French government bonds.
The calculation comprises the probability that the employee does not 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 fulltime employees and agents). Slovenian tables are used for expected mortality.
Any changes to provisions for long-service awards and severance pay to employees are
acknowledged by ZM within labor costs, included in operational costs.
Assets for employee’s pensions within the pension pillar are acknowledged by ZM as short-term costs
of the period, in which the payment is made to the pension fund of a pension ZM.
Among other provisions ZM also accounts retention sums from excess employment with regard to
disabled quota deriving from labor legislation. The assets are purpose-based, and can as such only be
used by ZM for purposes defined in labor legislation.
Liabilities for short-term employee earnings (salary, allowances...) are measured based on their
nominal value and recognized within labor costs, included in operational costs.
Accruals
105
Within active accruals ZM recognizes short-term deferred expenses (charges) and previously
uncharged income, and in passive accruals the included expenses (charges) in advance and deferred
income.
With accruals ZM adjusts temporal differences between the issuing of an insurance policy and the
beginning of insurance cover either as uncharged income or a short-term deferred income. The initial
recognition is the same as the amount stated in the insurance policy.
The previously uncharged income from interest on active accruals represents accounting interest for
debt securities that are not accounted by their amortized cost.
Other items in accruals are short-term deferred expenses (charges) and included expenses (charges)
in advance. In both cases it is about adjusting the existing instruments with the actual service offered
that has to relate to the accounting period.
Through the accrual of expenses ZM adjusts also the temporal difference between the costs incurred
when acquiring insurance—paid out provisions for underwritten life insurance—and incomes from
premiums of those insurances. Due to longer period of transfer into costs (probably more than one
year) they represent long-term deferred expense and the company accounts for them in financial
statement as an item of intangible assets.
Tax
ZM balances and pays tax on insurance transactions in accordance with the Insurance Transaction
Tax Act at a 6.5 percent 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. The tax rate during the
reporting period represents 18 percent, and it decreased by 2 percentage points relative to the
previous reporting period. In accordance with the legislation, the tax rate will gradually decrease in the
following periods. The decrease will be 1 percentage point every succeeding accounting period and
will concluded in 2015, when the tax rate will amount to 15 percent.
Deferred Taxes
Deferred taxes occur as deferred tax receivables or as deferred tax liabilities. When balancing
deferred taxes, ZM uses the balance sheet liability method. ZM defines the differences between the
accounting value of assets and liabilities for the needs of the financial report and the values for the
needs of the tax report as permanent or temporary differences. Temporary differences are divided
into taxable and deductible.
Deferred taxes are recognized based on the calculated temporary deductible difference if there is a
possibility of ZM enforcing all recognized deferred tax receivables in the following tax periods.
ZM recognizes the deferred tax liabilities based on the calculation of taxable temporary differences.
ZM recognizes the receivables or deferred tax liabilities in charged amounts calculated by multiplying
the temporary differences with the tax rate that will assumingly be used during the time of receivable
or liability realization. For the calculation of deferred taxes in the reporting period ZM used a tax rate of
15 percent.
The deferred tax receivables or liabilities are not discounted.
ZM offsets the deferred tax receivables and liabilities in the financial statement.
ZM calculates and recognizes deferred taxes arising from
o valuation of those financial assets classified under the group available for sale (disclosure of
fair value through the statement of total return),
o provisions for other long-term employees earnings.
106
In the reporting period, ZM recognized deffered tax receivables from recognized financial investment
impairments categorized in the group of financial assets available for sale through profit and loss
account.
ZM doesn`t recognize the receivables from impaired receivables, because it has no assurance that ZM
will realize them in a reasonable period and in accordance with the tax regulations.
ZM recognizes the deferred tax receivables and liabilities related to business events, recognized in the
Profit and Loss Account Statement, in the Profit and Loss Account Statement. ZM recognizes the
expenses or income for deferred tax in the Profit and Loss Account Statement for the accounting
period as a difference between final and initial deferred tax receivable/liability state.
The company recognizes the referred tax receivable and liabilities related to business events,
recognized in the statement of total return, directly in the statement of total return.
Revenue and Expenses
The recognized revenue of ZM represents the increase of economic benefit of ZM in the financial
period in form of influx of asset increase or lower debt, with the consequence of increasing equity,
except those related to contributions of ZM owners.
ZM recognizes the expenses in financial statements when they represent decrease of economic
benefits of ZM for the financial period in form of outflow or decrease of assets or increase of debt, with
the consequence of decreased equity, except those related to allocation among company owners.
ZM assures separate balance of all kinds of income and expenses for the property and life insurance
class.
Insurance Premium Revenue
When accounting the income from insurance premium ZM follows the rule of business event formation
and increase of economic benefit in the form of increase of influx or assets. ZM monitors the gross
insurance premium, the coinsurance and reinsurance premium and unearned premium reserve
separately. The income is measured based on insurance premiums listed in insurance agreements
and other instruments. The approved rebate on underwritten insurance is recorded as decrease of
premium income. The recognized premium income during the reporting period is proportionate to the
assumed coverage from insurance agreements.
The unearned premium reserve is calculated for each insurance agreement separately and is intended
for segregation of income from insurance premium to the whole coverage period. Insurance premiums,
charged subsequently for the assumed insurance coverage in 2012 are also included into the income
of a reporting period.
In case of insurance suspension ZM decreases the charged premium income by a proportionate share
of the unfinished period, for which the insurance premium was charged.
The net premium income is gross premium income, amended by the premium from the
assumed/ceded coinsurance and reduced for the reinsurance share in gross premium and amended
by the modification of the unearned premium reserve.
ZM monitors the income from insurance premium for each insurance group and line of business
separately.
Financial Revenue and Expenses
According to its nature of operations, ZM makes revenue and expenses mostly by investments.
Revenue and expenses from technical provision investments and from its own fund are recorded
directly without keys based on analytical calculations from the ZM’s chart of accounts, that establish
relation between investment account and revenue account.
Under financial revenue/expenses, ZM recognizes revenue/expenses from investment interests,
revenue/expenses from disposal of investments, from investment real estate, income from dividends,
107
negative and positive exchange rates and recognized impairment or repealed impairment of financial
investments.
Under revenue from dividends, ZM recognizes received dividends or shares to which it is entitled to on
the basis of investments in capital of other companies. They are recognized in the Profit and Loss
Account on the date on which the shareholder’s right to payment is enforced.
Revenue from interests is recognized upon its formation by using the effective interest rate.
In the balance sheet the interest from debt securities are accounted together with financial
investments.
Claims Incurred
When disclosing claims incurred, ZM 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 are composed of gross claims payments amended by charged claims from
assumed/ceded coinsurance and reduced for the share of reinsurers in gross claims and for amounts
of exercised recourse recovery. Net claims incurred also include change of net claims reserve, i.e.
gross claims reserve corrected for coinsurers’ share in claims reserve.
ZM monitors the claims incurred for each insurance group and line of business separately.
Operating Costs
ZM recognizes operating costs according to natural classes for values of original or realized
accounting instruments with obligatory use of cost centers from the ZM’s organization chart.
For accounting needs, costs are reallocated according to functional groups into insurance acquisition
costs, valuation costs and other operating costs. ZM applies fixed rules for allocation.
To carry out technical balance, ZM reallocates all operating costs to cost drivers also by taking into
account the already realized 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
organizational unit.
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RISK MANAGEMENT
One of the key elements of the ZM's business strategy is a complete and planned risk management
that enables efficient, successful and economical business operations, achievement of set business
goals, realization of ZM’s vision and mission, business determination and a sustainable ZM
development. ZM's goal in the field of risk management is to set up a complete insight into the
business risks that endanger company's operations and also to register and use opportunities, which
arise from business risks, on time.
ZM’s risk management process is continuous and it involves all organizational levels of ZM’s business
operations and all employees.
Presentation of Individual Operations Level Involvement into the Risk Management System
MANAGEMENT BOARD:
Responsible for complete risk management of the company
MIDDLE
MANAGEMENT
OPERATIONS
MANAGEMENT
Responsible for
establishment and
operations of internal
controls in individual
business processes
under the
responsibility of a
manager within the
insurance company
Responsible for
risk management
of the company
Responsible for
risk management
in business areas
under the
responsibility of a
manager
OTHER EMPLOYEES OF THE COMPANY
Responsible for operations of internal controls and for suggesting their
improvements with the activities performed by the employee
In 2012, ZM continued with the establishment of a strategic and systematic approach to risk
management with which it ensures a consistent and clear risk management.
For the needs of risk management ZM identifies the risks, assesses them and then defines the
procedures for their management.
Below we disclose and explain key business risks and processes for their management.
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ZM Business Risks
CAPITAL AND CAPITAL ADEQUACY RISK
The primary goal of ZM in the area of equity management is to assure capital adequacy at all times.
The capital adequacy is according to the legislation projected as ZM liability where ZM has to at all
times dispose of a high enough equity, dependent of the scope and line of business businesses
performed by ZM and risks ZM is exposed to when performing those business.
Capital adequacy is calculated by the methodology defined in the Insurance Act and the executive
regulation. In accordance with the provided measures by the supervisor, ZM calculates the capital
adequacy for insurance business in the property insurance group and for insurance businesses in the
life insurance group separately. The calculations and capital adequacy verification are performed
quarterly.
For the purposes of establishing and verifying capital adequacy of ZM the main forms of the equity are
guarantee fund, supplementary capital, required minimum level of funds and available capital. The
legislator regulated which items can be included into the calculation of available capital, composed of
core capital and supplementary capital and decreased by the deductible items that ZM cannot include
into the calculation of capital adequacy. The core capital is composed of share capital, capital
reserves, profit reserves (except its own shares and equalization provision) and unearned net profit
from previous years and from the short-term profit and loss account (when determining capital
adequacy on a yearly level). In supplementary capital items (discounted) ZM includes the value of
subordinate debt instruments. At any moment the available capital has to be higher than the required
minimum capital.
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Whilst achieving capital requirements ZM also maintains a certain surplus of available capital, which in
the event of raised capital requirements due to unexpected events in the area of premium, claims or
reinsurance protection, means that the capital adequacy would not be threatened.
In all periods of reporting period, ZM achieved coverage of required equity with available capital in the
area of property insurance as well as in the area of life insurance. Coverage index in the area of
property insurance amounts to 114.0 percent (2011: 117.7 percent) and in the area of life insurance to
89.3 percent (91.0 percent) on 31 December 2012.
Overview of basic capital adequacy categories
31.12.2012
in EUR
Core capital
Property
insurance
31.12.2011
Life insurance
Property
insurance
Life insurance
51,275,517
30.209,500
48,788,643
29,135,629
Guarantee fund
8,269,159
5,266,902
7,961,133
5,033,136
Supplementary capital
2,800,000
4,200,000
0
29,909,051
51,999,008
28,835,180
Available capital
53,085,882
Required minimum capital
24,807,478
15,800,707
23,883,399
15,099,408
Surplus of available capital
28,278,404
14,108,344
28,115,609
13,735,772
114.0%
89.3%
117.7%
91.0%
Percent of lacking/surplus
INSURANCE RISK
Insurance risk is a risk arising from underwritten insurance contracts. High number of different risks to
which ZM is exposed when underwriting insurances arise from its main operations. Material insurance
risks that ZM is exposed to in this area arise from:
• development of insurance products and determining their prices,
• accepting insurances into insurance,
• claims,
• formation of technical provisions.
The primary technique for reducing insurance risks is reinsurance protection. With an active
reinsurance policy ZM covers that share of risks assumed in insurance which exceeds own shares in
equalization of risks according to maximum coverage tables.
ZM pursues a conservative risk reinsurance policy and gives priority to the safety of ZM and the
insured persons.
Each year, ZM prepares a program of planned reinsurance. The following is considered in preparation
of this program:
• Legislation
• Maximum own shares in individual insurance type
• Planned scope of insurance businesses
• Estimated risk exposure and scope
• Available reinsurance coverage and reinsurance costs
• Reinsurance market conditions
• Existing business relations with reinsurers.
With the selected reinsurance program ZM significantly decreases the risks adopted for insurance.
The program of planned reinsurance is composed of number of adequate proportionate and
disproportionate reinsurance types because ZM’s structure contains also insurances in which
individual serious damage might occur, insurances in which deviations in size and frequency of small
and medium damages might occur, and insurances that might lead to accumulation of large number of
damages in case of damages.
The proportionate types include quota share and surplus reinsurance and a combination of both. ZM is
insured against serious damage of individual risks and accumulation of damages by disproportionate
excess of loss reinsurances.
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RISK CONCENTRATION
The 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
agreement or a smaller number of agreements covering events with low probability of occurrence but
which cause substantial damage (e.g. earthquake insurance or other natural disasters).
ZM controls the concentration of insurance risks with appropriate forms of reinsurances that are based
on the tables of maximum own shares.
The risk on account of the concentration in the life insurance segment is low.
Spread of insurance portfolio and exposure of ZM to great insured
for 2012
Premium total of
10 biggest insured
Property insurance
Life insurance
for 2011
Share of the total
premium
Premium total of
10 biggest insured
Share of the total
premium
14,265,342*
7.63%
17,061,610**
9.08%
109.,152
0.48%
81,001
0.34%
Life insurance
109,875
0.26%
165,803
0.43%
with investment risk
* Annual gross premium according to all classes of insurance, of which overage starts between 1.1.2012 and 31.12.2012
** Annual gross premium according to all classes of insurance, of which overage starts between 1.1.2011 and 31.12.2011
ZM 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 on ZM.
CLAIMS RISK
Claims risk is monitoring of the risk when the number of claims is higher than expected or the average
amount of claims is higher than expected. Claims risk also covers the possibility of the company
defining too high retention 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 life insurance agreements to the greatest extent. The
greatest risk factors for endowment life insurances are development of medical science and
improvement of the population’s social position, which increases longevity. In this case we talk about
the risk as a consequence of the insured actions and the environment in which they live on one hand
and the cost risk on the other.
Climate changes, which cause more frequent extreme weather events (floods, hail…), are a major
factor in property insurance agreements. 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). Here we also talk
about the risk as an environmental consequence, however, the risk of improperly planned product and
the risk of improper risk assumption play a more important role with property insurance agreements.
To manage insurance risks, ZM concludes reinsurance contracts, with which a part of the risk is
transferred to the reinsurer. Each business year, the Management Board adopts a program 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 program is composed of traditional proportionate and disproportionate forms of
reinsurance protection.
Claims Development
In continuation, development of claims in property insurance is shown. The development of recognized
claims according to the year when claims incurred is represented in the claims development triangle.
Amounts include claims paid and reserved which the insurance company recognized for each
individual year when claims incurred up to and including the relevant calendar year.
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Triangle of claim recognition development – property insurance*
Year of claim occurrence
in EUR
before
2008
Total
2008
2009
2010
2011
By the end of
claims year
180,116.032
157,618,593
130,787,710
125,345,396
One year later
178,461,268
147,362,022
119,539,511
110,546,528
Two years later
180,494,448
146,952,741
118,056,973
Three years later
182,243,079
145,348,283
Four years later
179,643,617
2012
Cumulative claim assessment
150,587,017
Comulatively
paid out claims
899,606,009
166,484,220
128,497,345
96,784,132
83,289,091
66,241,239
until 31 Dec 2012
Claims reserve
45,211,048
13,159,397
16,850,938
21,272,841
27,257,437
84,345,778
208,097,439
* status on 31 Dec 2012
*recourses, valuation costs and CR from coinsurance business are not broken down to the year claims incurred, so the table shows items that are
additionally included in the CR statement in the balance sheet in the individual table
**claims reserves according to inventory and IBNR
Claims reserve for property insurance, recognized in the balance sheet on 31 Dec
Claims reserve
in EUR
Bordereaux and
IBNR
For recourses
For valuation costs
From coinsurance
operations
Total
2012
208,097,439
-785,127
12,244,079
169,596
219,725,988
2011
184,321,302
-938,912
9,720,654
193,110
193,296,153
TECHNICAL PROVISIONS RISK
When forming technical provisions, there is a risk that the amount of the estimated provisions will not
suffice to cover all liabilities arising from the already accepted insurance agreements.
The risk of mathematical reserves being too low would occur if the actual mortality rate surpassed the
values in mortality tables, which are used in technical bases for calculation of life insurance premiums.
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. ZM compares the
actual morbidity and mortality rates of insured persons with the values in the tables on yearly bases
and finds that the actual mortality and morbidity rates are lower than the values in the tables.
The highest risk in property insurance is carried by the claims reserve, 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). Incorrectly assessed provisions for reported claims affect also the
calculation of incurred but not reported claims (IBNR claims).
ZM is monitoring the risks of claims reserve being lower than they should be with procedures realized
by the actuary service. It monitors the use of such provisions in previous years by individual insurance
class and by each year of a claims event. By calculating the quotient of the claims reserve amount
against the collected premiums and paid out claims one can assess whether the newly calculated
provisions are properly formed.
Liability Adequacy Test (LAT) with Regard to Property Insurance Agreements
With regard to property insurance agreements, the insurance company performs the adequacy test for
unearned premium reserves only. For claims reserve as well as for bonus and rebate provisions ZM
assumes that they are formed in appropriate amounts.
Claims reserve for:
113
o
o
Incurred, reported and unsettled claims 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 claims reserve for IBNR claims is performed for each insurance group 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.
Claims reserve are not discounted, which provides additional guarantee that the calculation based on
the chosen method is sufficient.
The consideration with regard to unearned premium reserves adequacy test relates to the difference
between expected claims and costs for the remaining unexpired portion of agreements, which were
valid on the balance date, and the provision amount for unearned premium reserves. Reduction of
gross unearned premium reserves 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.
With regard to insurance classes where it has been established that unearned premium reserves are
insufficient in relation to the expected claim activity, the insurance company established additional
provisions for unexpired risks and recognizes them in financial statements as additional liability – other
technical provisions.
When preparing the adequacy test of liability formed within property insurance agreements, 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.
In addition to poor assessment of claims reported and not yet paid, risk factors affecting assessment
of the amount of claims reserve include:
o The risk of claim amount variability being above average,
o The risk of selected quotients in the triangle method inadequately describing the trends in the
insurance subclass. Consequently in accordance with precautionary principle, conservative
methods are selected to calculate quotients, particularly in the dominant insurance types,
o The risk of the amount of average expected claim being too low as the increase of prices
could significantly raise these claims,
o The risk of the relevant services underestimating the reported and not yet paid claims,
o The risk of the amount of claims determined in disputes being higher than assessed by
individual services,
o The risk of the short-term net value of annuities payable, which might still be recovered, being
underestimated due to strong growth of cost of living,
o The risk of economic trends increasing inflation and consequently the amount of claims paid
for past events.
ZM 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 and it promptly adopts the
established deficiencies.
Liability Adequacy Test (LAT) with Regard to Life Insurance Agreements
With regard to insurance agreements, ZM performs the liability adequacy test on each balance day.
ZM performs the test based on the short-term assessments of the future contractual cash flows in
which it considers the short-term (best) assessment of all contractual and related cash flows like
valuation costs, administration costs, financial income from investments that cover liabilities from
insurance agreements. ZM performs the test on formed gross liabilities that arise from insurance
agreements less deferred acquisition costs.
If the test proves that currently formed liabilities are inadequate, ZM recognizes the shortage as the
increase of liability by the amount of the shortage.
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The test is performed for each life insurance agreement valid on the balance date. The results are
organized in insurance product groups – classic 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 (agent commission, valuation costs, administrative costs),
• Investment income.
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,
• Assumption: mortality margin, cancellation ratio, future profitability, realized costs, future
inflation rate, claim ratio of additional accident insurances.
For cash flows dealt with prior to policy expiration, their short-term value is calculated upon balance
date.
Detailed Explanation of Assumptions used in LAT Test for Life Insurance
1. Discount rate
For the calculation of short-term expected cash flow value the area yield curve on 31 December 2012
based on the Slovenian government bonds (2011: Euro area yield curve based on AAA rated
government bonds) is used.
2. Investment profit rate
For the calculation of investment income the area yield curve on 31 December 2012 based on the
Slovenian government bonds (2011: Euro area yield curve based on AAA rated government bonds) is
used
3. Inflation rate
For the estimated cost increase a 3% annual rate of inflation is used.
4. Mortality margin rate
Based on an internal analysis of mortality rate with regard to the used mortality tables, a 50 percent
mortality rate applies to classic life insurances apart from whole life insurance. A 60 percent mortality
rate applies to whole insurance, and a 50 percent mortality rate applies to unit-linked life insurance.
5. Cancellation rate
Based on an internal analysis of life insurance cancellations, the following cancellationratios apply:
6. Realized costs
Insurance year
1
2
3
4
5
6
7
8
9
10
≥11
Cancellation rate in percent
14
12
13
8
7
8
13
14
9
10
7.5
8
7
8
6
8
5.5
8
5
8
5
8
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The operational costs stated within accounting items are split between fixed costs and costs
expressed as a share of gross premium. For capitalized policies 80 percent of fixed costs per policy
are considered in case of classic life insurance and 75 percent of fixed costs per policy in case of unitlinked life insurance.
7. Claim ratio of supplementary accident insurances
Based on an internal analysis of claim ratio of supplementary accident insurances, the claim ratio
applies that comprises also valuation costs in case of additional accidents.
Liability Adequacy Test Results for 2012
The estimated short-term value of future cash flows, for classic life insurance and unit-linked life
insurance separately, is compared to the existing formed mathematical reserves and unearned
premium reserves less deferred acquisition costs. If the test proves that currently formed liabilities are
inadequate, ZM recognizes the shortage as the increase of liability by the amount of the shortage.
The liabilities calculated with the LAT test on a balance date of 31 December 2012 are lower for
classic life insurance as the sum of mathematical reserves and unearned premium reserves less
deferred acquisition costs that ZM listed in the statement of operations. The test proved the adequacy
of formal liabilities for classic life insurances.
The liabilities calculated with the LAT test on a balance date of 31 December 2012 are lower for unitlinked life insurance as the sum of mathematical reserves and unearned premium reserves less
deferred acquisition costs that ZM listed in the statement of operations. The test proved the adequacy
of formed liabilities for unit-linked life insurance.
Sensitivity analysis of liability adequacy test for 2012
ZM has performed an analysis of LAT test with regard to the influence of various parameters. Each
time only one assumption was modified while the others remained unchanged.
Performed sensitivity analyses – changes in assumptions:
1. The interest rate used in the calculation of short-term value of expected cash flows and in the
forecast of investment profitability, is decreased by 100 basis points,
2. The interest rate used in the calculation of short-term value of expected cash flows and in the
forecast of investment profitability, is increased by 100 basis points,
3. The ratio of mortality margin is increased relatively by 10 percent,
4. The cancellation ratio is increased relatively by 10 percent,
5. Realized costs are increased relatively by 10 percent,
6. Inflation rate increased relatively by 10 percent.
116
Results of sensitivity analysis – changes in liability amount calculated through the LAT test on the
balance date of 31 December 2012
Modified
assumption
Interest rate
Interest rate
Mortality margin rate
Cancellation rate
Realized costs
Inflation rate
Modification of
Liability
Estimations
amount
(in euros)
- 100 basis points
3,381,379
+ 100 basis points
-2.870,104
+ 10 % relatively
654,754
+ 10 % relatively
301,099
+ 10 % relatively
1,222,994
+ 10 % relatively
66,748
Modified
assumption
Interest rate
Interest rate
Cancellation rate
Realized costs
Inflation rate
Modification of
Liability
Estimations
amount
(in euros)
- 100 basis points
-334,408
+ 100 basis points
341,588
+ 10 % relatively
1,241,902
+ 10 % relatively
899,213
+ 10 % relatively
4,027,840
+ 10 % relatively
258,052
Results of sensitivity analysis – changes in liability amount calculated through the LAT test on the
balance date of 31 December 2011:
Modified
assumption
Interest rate
Interest rate
Cancellation rate
Realized costs
Inflation rate
Modification of
Liability
Estimations
amount
(in euros)
- 100 basis points
13,138,743
+ 100 basis points
-8,788,078
+ 10 % relatively
768,009
+ 10 % relatively
-77,298
+ 10 % relatively
1,914,786
+ 10 % relatively
176,134
Modified assumption
Interest rate
Interest rate
Cancellation rate
Modification of
Liability
Estimations
amount
(in euros)
- 100 basis points
79,070
+ 100 basis points
149,683
+ 10 % relatively
944,478
+ 10 % relatively
774,376
Realized costs
+ 10 % relatively
2,327,643
Inflation rate
+ 10 % relatively
244,024
117
FINANCIAL RISK
ZM is exposed to market risk and credit risk.
Market risk is a risk of loss incurrence due to unfavorable change of prices, assets and agreements
that ZM owns at a certain moment. Market risks depend on general economy conditions.
Credit risk represents the risk of loss due to unexpected non-payment or deterioration of credit position
of opposite parties and ZM debtors.
MARKET RISK
We present market risks and risk management procedures for those market risks that ZM pays the
most attention to.
The Risk with the Adjustment of Investments with Technical Provisions
The business fund and the long-term business fund represent ZM assets intended for coverage of
future liabilities from insurance underwritten by ZM and possible losses due to risks that arise from
insurance business, in regard to which ZM is obliged to form technical provisions.
The business fund is formed for the coverage of liabilities from property insurance agreements while
the long-term business fund is formed for the coverage of life insurance agreements. The legislation
dictates strict provisions regarding the class and location of allowed investments from the business
fund and/or long-term business fund, and it also sets certain limitations regarding the scope of
individual investment. ZM has to adjust the business fund and long-term business fund investments,
on account of which it is exposed to eventual loss risk due to changes in interest rates, exchange rates
or market risks, with the technical provisions, the value of which depends on the same changes. At the
same time ZM has to follow the liability maturity from the insurance agreements appropriately when
investing.
ZM invests assets arising from technical provisions in a way that it entirely considers all legislative
limitations regarding the investments into individual investments classes.
When ascertaining the investment coverage with technical provisions, ZM considers as investment the
17
assets that are according to the Insurance Supervision Agency decision listed as investment items.
Into this group ZM also includes receivables from the policyholders for insurance premiums from
property insurance with 30-day maturity.
Coverage of technical provisions with investments on 31 December 2012
Business funds
Comparative items
Total asset value
permitted
for investment coverage
Investment
surplus/lack
Surplus/lack percentage
Classic life
insurance
Prizma
ZM
Zajamč eni
Hibrid
Long-term
business
fund
Total
250,511,223
114,602,268
8,294,207
1,976,382
303,030,526
678,414,605
271,935,189
116,791,385
8,389,103
2,105,521
324,149,779
723,370,977
21,423,967
2,189,118
94,896
129,139
21,119,253
44,956,372
8.6%
1.9%
1.1%
6.5%
7.0%
6.6%
*technical provisions from coinsurance businesses excluded and equalization provisions included
17
Decision on detailed rules of assets covering technical provisions and assets covering life assurance
provisions, and rules of investments not financed form technical provisions.
118
Coverage of technical provisions with investments on 31 December 2011
Business funds
Comparative items
Classic life
insurance
Prizma
ZM
Zajamč eni
Hibrid
Long-term
business
fund
Total
245,853,411
96,590,813
4,508,372
517,401
275,867,980
623,337,977
Total asset value permitted
for investment coverage
265,552,563
101,778,985
4,532,497
809,404
300,061,738
672,735,187
Investment surplus/lack
19,699,152
5,188,172
24,125
292,003
24,193,758
49,397,210
Surplus/lack percentage
8.0%
5.4%
0.5%
56.4%
8.8%
7.9%
*technical provisions from coinsurance businesses excluded and equalization provisions included
Interest Rate Risk
Interest rate risk is a risk of interest rate change.
ZM did not use the derivative instruments for immunization of interest rate risk during reporting period,
and it also hasn`t form reserves for covering possible loss from interest rate risks. ZM managed the
investment portfolio in a way that it decreased the margin between maturity and investments liability as
much as possible.
The investments into debt financial instruments that bear interest, present a large share of
investments. The table below presents the share of such investments that bear fixed interest rate and
the share of investments that bear floating interest rate.
Investment share according to the interest rate type
31.12.2012
Amount in
euros
Investments bearing:
Percent
Amount in euros
Percent
79.9%
498.063,203
80.7%
592,936
0.1%
4,871,414
0.8%
548,061,888
79.8%
493,191,789
79.9%
19.3%
100.00%
548,654,824
- floating interest rate
- fixed interest rate
31.12.2011
Non-interest bearing investments
138,003,728
20.1%
119,387,923
Investments total*
686,658,551
100.0%
617,451,126
*investment real estate excluded
For the analysis of the influence of market interest rate change on investments and insurance
agreement liabilities ZM used a methodology in which it used growth or drop of the interest rate for
100 basis points as a presumption in the reporting period. ZM justifies the modification of the used
presumption by oscillation of market interest rates in financial markets during the reporting period.
Sensitivity Analysis – Property Insurance
ZM executed the analysis of property insurance investment sensitivity to market interest rate change
on that part of the investment portfolio that is sensitive to interest rate change. With the presumption of
18
interes trate growth of 100 basis points the value of investment into business fund bonds would
decrease by 4,592,181 EUR (2011: 3,079,041 EUR), resulting in the decrease of the reserve for
modification of fair value in equity. With the presumption of interest rate growth of 100 basis points the
value of investment into business fund bonds would increase by 4,912,412 EUR (2011: 3,218,980
EUR), resulting in the increase of the reserve for modification of fair value of equity.
The value of technical provisions in property insurance would remain unaffected by the interest rate
change due to non-discount.
Sensitivity Analysis – Life Insurance
With the presumption of interest rate growth of 100 basis points the value of investment into business
fund debt securities would decrease by 5,894,466 EUR (2011: 2,555,216 EUR), resulting in the
18
Bonds with fixed interest rate are considered.
119
increase of the reserve for modification of fair value in equity. With the presumption of interest rate
decrease of 100 basis points the value of investment into business fund bonds would increase by
6,349,022 EUR (2,718,872 eur), resulting in the increase of the reserve for modification of fair value in
equity.
ZM executed the analysis of sensitivity to market interest rate change for those insurance agreement
liabilities for which the accounted liabilities are directly sensitive to the market interest rate change.
The classic life insurance liabilities are thus sensitive to the market interest rate only in case when the
LAT test shows deficit. ZM thus calculated only the LAT test liabilities while the calculation of liabilities
arising from mathematical reserves remained unchanged.
With the presumption of interest rate growth of 100 basis points the liability value arising from classic
life insurance agreements would not change. In the event of interest rate drop of 100 basis points the
liability value arising from classic life insurance agreements would not change. Liability increase or
decrease directly influence the income and/or charges of ZM and thus also the higher or lower
participation of the insured persons in the result of classic life insurances.
Analysis of Investment and Insurance Agreement Liability Portfolio Duration
An average duration of business fund bonds portfolio on 31 December 2012 is 4.37 years (31
December 2011: 4.11 years) while the average duration of liabilities arising from property insurance
portfolio is 2.83 years (2011: 2.58 years).
An average duration of19 long-term business fund bonds20 for classic life insurance on 31 December
2012 is 4.48 years (31 December 2011: 3.56 years).
The average duration of liabilities arising from classic life insurance portfolio (the calculation includes
only long-term mathematical reservs of the above mentioned insurance) on 31 December 2012 is 8.68
years (31 December 2011: 8.37 years).
Investment Sensitivity Analysis
The influence of interest rate change to profit and loss account items or to equity depends on
involvement of individual investment, which reacts to the interest rate change, into individual group of
financial assets of ZM. The following table shows the effect of the change of interest rate and the
change of market value of the equity securities on profit and loss account items or the surplus arising
from revaluation, which is a part of equity for equity and debt securities (business fund, long-term
business fund and own fund).
Balance on 31 Dec 2012
Presumption
Estimations
Interest rate
Market value***
Interest rate
Market value***
Impact on profit
and loss account
prior to taxation*
+ 100
basis points
+ 10 %
- 100
basis points
- 10 %
Impact on
equity**
Impact on
profit and loss
account prior
to taxation*
Impact on
equity**
230,120
-11,717,260
198,429
-5,980,645
-
2,338,803
-
2,564,439
-230,120
12,581,376
-198,429
6,310,497
-
-2,338,803
-
-2,564,439
* bonds with floating interest rate
** bonds with fixed interest rate
*** market and equity securities
19
The calculation of duration and interest rate sensitivity with all investments into bond is based on the
presumption of horizontal curve of profitability, thus considering a unified discount rate throughout the whole
period.
20
Bonds with fixed interest rate are considered.
120
Currency Risk
Currency risk is a risk of currency exchange rate change influencing the value of assets and liabilities
towards the asset source of ZM.
The Insurance Act imposes ZM the currency adjustment liability from insurance agreements and
investments in the amount of minimum 80 percent.
ZM fulfilled the legal demand regarding the currency adjustment in full during the reporting period.
With the introduction of the Euro as the legal means of payment in the Republic of Slovenia, the
currency adjustment of investments and liabilities came near to 100 percent. For this reason, the
currency risk and ZM’s exposure to it are negligibly low and consequently no special measures for its
reduction are being taken in the insurance company. Consequently no special measures for its
reduction are being taken in ZM.
Due to almost perfect currency adjustment of investments and liabilities the analysis of change
sensitivity with other currencies doesn’t materially influence the equity or the profit state of ZM. The
manner of monitoring the currency change influence on ZM’s equity and profit has not changed,
relative to the previous year.
Risk of Equity Security Market Value Change
The risk of equity security market value change is the risk of drop in market value of the equity
securities.
ZM invests in equity securities in such a way that it ensures an adequate investment diversification
and regularly monitors and analyses the operations of individual issuers. The investment portfolios
mostly include shares with higher market capitalization and sufficient liquidity.
ZM has 10,472,449 EUR worth of investment in shares of trade companies (2011: 12,313,447 EUR)
and 122,476,189 EUR (2011: 107,074,471 EUR) worth of investment in shares of investment
companies and points of mutual funds of which 104,998,557 EUR in KSNT - long-term business fund
for insurance with the assured assuming the investment risk (2011: 87,460,837 EUR).
With the presumption of a 10 percent drop in the market value of shares, the value of share
investments would decrease by 2,338,803 EUR (2011: 2,564,439 EUR), resulting in the decrease of
the reserve for modification of fair value. We did not consider the KSNT investments in this calculation
as their investment risk is assumed by the insured persons.
Liquidity Risk
Liquidity risk is the risk of ZM not having enough assets to cover all of its liabilities or to maintain
current operations at a certain point in time.
ZM carries out its investment activities in such a way that, at all times, it is able to fulfill all its mature
liabilities. That is why it has developed an efficient liquidity risk management system within the scope
of which it plans cash flows for daily, weekly, monthly, quarterly and yearly periods.
In the process of liquidity management, the company regularly monitors cash flow. Cash outflow in
respect of salaries 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 organization units to the persons
responsible for liquidity management as soon as their first estimates are known.
121
Individual major claims are observed by means of a detailed system of prompt internal reporting by
individual organization units on any claims above the previously determined amounts. Thus, the
liquidity management is informed of all estimated major claims and of the expected dates of payment
as soon as the first valuations are made.
To establish a full picture of liquidity, we also plan cash inflow in respect of premiums, investment, and
other cash inflow. If the actual flow deviates from the planed and liquidity assets fail to cover the
liabilities on a specific day, we adopt 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 controllable.
The following table represents the state of undiscounted accounting values of ZM’s financial assets
and liabilities by their maturity date.
Maturity dates of financial assets
in EUR
Investments
21
22
and liabilities
Current value
on 31.12.2012
until 1
year
for 2012
From 1 to 5
years
From 5 to 10
years
Over 10 years
No marturity
650,710,953
62,964,577
225,755,951
216,279,812
12,950,331
132,760,281
69,105,266
42,947,207
25,796,194
361,865
0
0
In possession until maturity date
158,426,715
0
60,438,044
95,985,660
2,003,011
available for sale
299,757,300
19,028,455
129,884,914
112,134,887
10,947,320
27,761,724
By the fair value through profit
and loss account
123,421,672
988,915
9,636,800
7,797,400
0
104,998,557
66,277,201
33,121,132
21,803,850
6,852,668
4,499,551
0
11,143,339
10,861,847
256,297
20,069
5,126
0
55,097,306
22,222,763
21,547,522
6,832,597
4,494,425
0
36,557
36,523
32
2
0
0
Receivables
49,550,287
49,550,287
0
0
0
0
36,107,765
36,107,765
0
0
0
0
830,407,930
209,505,485
247,559,801
223,132,480
17,449,882
132,760,281
8,462,708
0
8,462,708
0
0
0
684,135,148
192,152,870
181,479,329
207,530,307
94,564,110
8,408,532
72,841,753
71,001,780
1,682,227
131,186
26,561
244,441,033
16,005,243
52,862,242
132,000,782
35,667,880
7,904,885
119,046,071
112,093
33,352,937
45,725,806
39,351,588
503,646
239,271,397
96,506,925
93,574,548
29,671,958
19,517,965
0
8,534,894
8,526,828
7,374
575
116
0
Other reservations
5,191,210
532,656
1,149,360
1,006,202
2,502,992
0
19,167,513
19,167,513
0
0
0
0
Other liabilities
(accruals excluded)
7,692,243
7,692,243
0
0
0
0
724,648,821
219,545,282
191,091,397
208,536,509
97,067,101
8,408,532
Loans and deposits
Reinsurers Assets
From unearned premium
reserve
From provisions for claims
outstanding
Form other technical provisions
Financial assets
Unearned premium reserve
Mathematical reserves of
classic insurance*
Mathematical reserves of
investment insurance
Claims reserve
Financial liabilities
*based on insignificant insurance share without profit participation, showed liability from mathematical reserves of classic
insurance represents discounted cash flow
21
Financial assets in chapter 3 represent the following balance items: investments, investments in group
companies, assets of the insured who assume the financial risk, the amount of technical provisions transferred to
co- and reinsurers, receivables, and cash and cash equivalents.
22
Financial assets in chapter 3 represent the following balance items: subordinate liabilities, technical
reservations, technical reservations in favor of life insured that assume the investment risks, other provisions,
operation liabilities and other liabilities.
122
Maturity dates of financial assets and liabilities for 2011
in EUR
Current value
on
31.12.2011
Up to 1 year
From 1 to 5
years
From 5 to 10
years
Over 10 years
No marturity
Investments
617,641,126
139,136,923
174,019,243
211,587,285
30,822,365
62,075,310
Loans and deposits
100,607,673
70,813,160
29,303,733
460,024
0
30756
155,841,253
990,790
37,399,664
113,332,351
4,118,448
0
available for sale
241,876,813
50,767,323
92,795,221
62,254,088
4,081,457
31,978,724
By the fair value through profit and loss
account
119,315,387
16,565,650
14,520,625
35,540,822
22,622,460
30,065,830
Reinsurers assets:
60,428,019
60,386,617
12,521
7,807
21,075
0
From unearned premium reserve
12,740,443
12,740,443
From provisions for claims outstanding
47,644,049
47,644,049
43,527
2,125
12,521
7,807
21,075
0
53,493,554
53,493,554
353,720
353,720
731,916,419
253,370,813
174,031,764
211,595,092
30,843,440
62,075,310
7,000,000
0
7,000,000
0
0
0
622,213,110
173,343,811
149,158,336
205,891,990
92,135,651
1,683,322
74,920,388
73,194,588
1,497,451
200,793
27,556
0
233,907,792
11,199,679
54,194,610
128,295,145
38,715,579
1,502,779
97,568,849
96,804
16,244,922
45,341,053
35,705,527
180,543
210,402,663
83,563,519
77,113,589
32,040,549
17,685,006
0
5,413,418
5,289,221
107,764
14,450
1,983
0
Other reservations
4,851,153
218,625
1,288,385
803,381
2,168,609
372,153
Form other technical provisions
Receivables
Financial assets
Mathematical reserves*
of classic insurance
of investment insurance
Claims reserve
23,322,480
23,322,480
0
0
0
0
Other liabilities (accruals excluded)
10,676,155
10,676,155
0
0
0
0
668,062,899
207,561,072
157,446,720
206,695,371
94,304,260
2,055,475
*based on insignificant insurance share without profit participation, showed liability from mathematical reserves of classic
insurance represents discounted cash flow
In accordance with the Insurance Act and executive regulations ZM is bound to weekly liquidity
monitoring through calculation of liquidity quotient, for each long-term business fund and for business
fund of ZM separately. The liquidity quotients that were calculated during the reporting period were
always significantly above the minimum required quotient value.
Investment Concentration Risk
ZM manages the investment portfolio in such way that it assures dissemination of investments. In this
way ZM decreases the risk while still maintaining the same estimated portfolio profitability. ZM
complies with all legislative dissemination limitations and also forms internal limits for individual
investments types.
The risk of issuer country is due to the demands in previous insurance legislation regarding the
investment localization less disseminated risk.
Geographic structure of investments
31.12.2012
Amount in euros
31.12.2011
%
Amount in euros
%
Slovenia
455,338,274
66.3%
473,736,736
76.7%
EU and others
231,320,277
33.7%
143,714,390
23.3%
Total
686,658,551
100.0%
617,451,126
100.0%
123
CREDIT RISK
Credit risk represents the risk of loss due to unexpected non-payment or deterioration of credit position
of opposite parties and ZM debtors.
The investment portfolios of ZM (loans, deposits and other debt securities) are subject to credit risk of
unsettled liabilities or modifications of credit advantage of security issuers. To reduce such exposure
as much as possible ZM invests into securities of issuers with high credit assessments. The opposite
parties, the insured persons and the reinsurer companies mostly, not fulfilling an obligation in time or
at all represent another credit risk for ZM.
In the table below the structure of financial assets by their credit assessment23 is presented. Some of
the domestic issuers are listed under the ‘no assessment’ category while the ZM does not invest into
investments of foreign issuers with no assessment.
The structure of financial assets by their credit assessment for 2012
31.12.2012
in EUR
Investments*
Loans and deposits
In possession until
maturity date
available for sale
Total
Less than
BBB
No
assessment
243,884,659
100,314,444
20,229,550
518,002,315
0
0
59,404,867
9,700,401
69,105,268
1,127,005
2,681,654
154,474,066
143,991
0
158,426,716
AAA
AA
A
BBB
4,694,769
22.245,758
126,633,136
0
0
0
4,694,769
21,118,753
106,999,432
87,939,528
40,765,586
10,529,149
272,047,217
By fair value
through profit and loss
account
0
0
16,952,050
1,471,065
0
0
18,423,115
Reinsurers Assets
0
0
0
64,422,149
16,819
1,838,233
66,277,201
Receivables
0
0
0
0
0
49,550,287
49,550,287
0
0
0
0
0
36,107,765
36,107,765
4,694,769
22,245,758
126,633,136
308,306,808
100,331,263
107,725,836
669,937,569
Cash and Cash
Equivalents
Total
* Equity securities excluded
The structure of financial assets by their credit assessment for 2011
31.12.2011
in EUR
AAA
Investments*
Loans and deposits
In possession until
maturity date
available for sale
By fair value
through profit and loss
account
Reinsurers Assets
Receivables
Cash and Cash
Equivalents
Total
AA
A
No
assessme
nt
Less than
BBB
BBB
Total
2,070,000
29,880,086
311,050,316
4,852,728
129,212,662
21,187,417
498,253,208
0
0
7,187,000
0
80,236,979
13,183,696
100,607,674
0
298,621
154,382,520
25,387
143,933
990,790
155,841,251
0
10,745,415
138,999,996
4,359,641
48,831,750
7,012,931
209,949,733
2,070,000
18,836,050
10,480,800
467,700
0
0
31,854,550
49,386
1,039,845
59,161,832
24,209
0
152,747
60,428,019
0
0
0
0
0
53,493,554
53,493,554
353,720
0
0
0
0
0
353,720
2,473,106
30,919,932
370,212,147
4,876,937
129,212,662
74,833,718
612,528,501
23
In case of various assessments we arranged the issuers in both tables according to the lower
allocated assessment. The issuers that were assessed only by Moody's and not by Fitch or S&P also,
were listed into the table according to the equivalent assessment from the latter two.
124
The analysis of financial assets that were due on the reporting date but ZM did not impair them in
accordance with the adopted directives in the area of asset impairment realization is presented in the
following table.
The biggest exposure to credit risk by financial asset groups
31.12.2012
Fin. assets
of longterm
business
fund of life
insurance
w.
investment
risk
31.12.2011
Other
financial
assets of
ZM
Total
19,584,702
478,668,506
498,253,208
69,105,268
7,666,167
92,941,507
100,607,674
662,998
662,998
0
778,769
778,769
266,671
68,175,599
68,442,270
7,666,167
92,162,738
99,828,905
7,765,408
150,661,308
158,426,716
4,185,351
151,655,900
155,841,251
available for sale
0
272,047,217
272,047,217
0
209,949,733
209,949,733
- debt securities
0
271,995,574
271,995,574
0
209,898,090
209,898,090
- Other investment forms
0
51,643
51,643
0
51,643
51,643
and loss account
8,845,230
9,577,885
18,423,115
7,733,184
24,121,366
31,854,550
- debt securities
8,845,230
9,577,885
18,423,115
7,733,184
24,121,366
31,854,550
Reinsurers Assets
258,855
66,018,346
66,277,201
189,376
60,238,644
60,428,019
Receivables
660,465
48,889,822
49,550,287
851,986
52,641,568
53,493,554
5,369,561
30,738,204
36,107,765
152,479
201,241
353,720
Total credit risk exposure
23,166,190
646,771,379
669,937,569
20,778,542
591,749,959
612,528,501
in EUR
Investments*
Loans and deposits
- loans
- deposits
In possession until maturity
date
Other
financial
assets of
ZM
Total
16,877,309
501,125,007
518,002,316
266,671
68,838,597
0
Fin. assets
of longterm
business
fund of life
insurance
w.
investment
risk
In the area of insurance business receivables ZM continuously monitors and assesses the repayable
receivable values. Due to the risk that not all of the receivables will be settled in time or will not be
settled at all, ZM assesses the repayable receivable value on each reporting date. The original value
of the receivables is decreased by the calculated modification of value and then the assessed shortterm value of receivables is accounted in the profit and loss account. ZM forms the assessed shortterm value of receivables based on a special methodology (presented in the accounting policy). The
table below displays the age structure of insurance business receivables that are subject to
revaluation to their assessed repayable value.
125
Insurance business receivable impairment
31.12.2012
in EUR
Receiva
ble
amount
31.12.2011
Receivable
impairment
Current
value
Receivable
amount
Receivable
impairment
Current
value
Property insurance receivables
Mature
receivables
Up to 1 year
From 1 to 2 years
Over 2 years
Non-mature
receivables
Total
25,107,934
13,565,745
11,542,189
26,573,240
11,560,938
15,012,303
10,520,100
1,190,650
9,329,450
6,398,917
740,355
5,658,562
2,495,135
282,396
2,212,739
15,295,516
5,941,776
9,353,740
12,092,699
12,092,699
0
4,878,807
4,878,807
0
26,734,348
2,970,607
23,763,742
25,050,264
1,753,518
23,296,746
51,842,282
16,536,352
35,305,930
51,623,504
13,314,456
38,309,048
Recourse recovery
Mature
receivables
Up to 1 month
15,709,339
From 1 to 3 months
Over 3 months
Non-mature
receivables
Total
15,656,938
52,401
15,554,904
236,565
15,521,974
224,167
12,398
32,930
157,990
117,687
40,303
423,736
411,638
12,098
410,637
390,105
20,532
14,907,702
14,907,702
0
3,038,469
2,905,793
132,676
18,427,767
165,606
15,127,613
15,127,613
0
2,679,420
2,573,008
106,412
18,388,759
18,229,946
158,813
18,593,373
407,661
799,504
1,284,850
799,504
895,671
0
389,179
389,179
0
0
0
0
0
799,504
1,284,850
389,179
895,671
Life insurance receivables
Mature
receivables
Up to 3 months
1,207,165
799,504
Over 3 months
407,661
Non-mature
receivables
Total
407,661
0
1,207,165
407,661
389,179
895,671
895,671
Other insurance related receivables
Mature receivables
1,249,833
120,152
1,129,680
597,467
123,107
474,360
369,035
6,016
363,019
1,036,464
4,672
1,031,792
1,618,868
126,169
1,492,699
1,633,931
127,779
1,506,152
73,057,074
35,300,127
37,756,947
73,135,659
32,259,181
40,876,477
Non-mature
receivables
Total
Receivables from
direct
insurance
operations
Trends in insurance business receivable value modification in 2012
in EUR
Recourse recovery
Total
Balance on
1.1. 2012
Increase
13,314,456
Decrease
4,343,236
Write-off
29,779
-1,151,120
Balance on
31 Dec 2012
16,536,352
389,179
166,979
-148,399
-98
407,661
18,427,767
4,588,155
-4,655,771
-130,205
18,229,946
127,779
59,380
-21,063
-39,927
126,169
32,259,181
9,098,371
-4,774,390
-1,321,351
35,300,127
Trends in insurance business receivable value modification in 2011
Recourse recovery
10,485,705
438,704
18,201,793
173,243
3,562,057
16,978
549,810
4,113
0
-66,864
-240,719
-49,493
-733,306
360
-83,117
-84
Balance on
31 Dec 2011
13,314,456
389,179
18,427,767
127,779
Total
29,299,445
4,128,845
-307,583
-816,063
32,259,181
in EUR
Balance on 1 Jan 2011
Increase
Decrease
Write-off
126
The procedures of credit risk management with reinsurance relate to credit assessment of reinsurers.
In accordance with credit risk management goals ZM only makes insurance business with reinsurers
with high credit assessment. Most of the reinsurance businesses in made with Pozavarovalnica Sava,
which is regularly assessed by the renown Standard & Poor's agency that may issue an assessment
grade between AAA (highest) and D (lowest).
Pozavarovalnica Sava is evaluated by two credit rating agencies. Bonitetna ocena S&P is BBB+, while
24
the assessment is given by the Agency A.M. Best A-.
OPERATIVE RISKS
Operative risk is defined as loss risks resulting from:
•
•
•
•
Inappropriate or unsuccessful internal processes
Inappropriate and unsuccessful human behavior
Inappropriate and unsuccessful system operation, and
External events (modifications of legislation, competitive products, insurance fraud etc.)
The insurance company pays a lot of attention to operative risk management and adopts different
measures for their management.
RISK MANAGEMENT – FUTURE CHANGES
In the following years ZM will go through important changes in the area of risk management. The
European Parliament has namely in April 2009 confirmed a Solvency II directive proposal, and in May
the Ministers of Economic and Financial Affairs Council signed the formal validity of the directive.
The date for the implementation of the European Parliament and European Council Directive
2009/138/ES in the time of preparation of the annual report is not known. There is uncertainty
regarding the date, when the insurance company will have to report on capital adequacy according to
the new system for the first time.
24
Source: http://www.sava-re.si/si/vlagatelji/bonitetna-ocena/
127
SEGMENT REPORTING
Segment reporting is drawn up in accordance with decision on annual reports of insurance
25
undertakings .
By its organization and operations ZM enables monitoring of assets and liabilities, income and
charges, and profit and loss account separately for:
o
o
property insurance group
life insurance group
In accordance with legislation and executive regulations of Insurance Supervision Agency both
insurance groups form independent reporting segments of ZM. Each business segment in managed
separately and the management of ZM regularly reviews efficiency of segment operations. On account
of those reviews it makes business decisions.
The reporting section of property insurance offers an operations overview in the area of property
insurance underwritten by ZM and its insured.
The reporting section of life insurance combines an insight into the classic life insurance operations
and into life insurance with assumed investment risk.
The assets and liabilities from business segments comprise assets and liabilities of ZM that can be
directly attributed to an individual business segment as well as those that can reasonably be attributed
to business segment.
Income and charges of a business segment arise from business segment operations and can be
directly attributed to the business segment, and also a corresponding share of income and charges
that can reasonably be attributed to the business segment. The business segments make all
recognized income with external clients (the insured persons). The charges that appear at the
insurance company level, are allocated to the business segment charges indirectly. Indirect allocation
(operative costs mostly) is performed quarterly based on the already known procedures and allocation
keys (number of claims, number of insurances, gross premium, settled damages, number of
employees, etc.) that do not change during individual reporting periods.
Accounting policies of business segments are entirely the same as accounting policies of ZM.
ZM is not bound to business segment reporting in accordance with IFRS, as it does not publicly trade
with its own and debt securities. The report by business segments is thus prepared in accordance with
Decision on annual reports of insurance undertakings (SKL-2009).
25
Official Gazette of RS no. 47/2011, 99/2010 and 47/2009
128
in EUR
ASSETS
Intangible Assets
Investment Property
Investment in group companies and associates
Investments:
- Into loans and deposits
- In possession until maturity
- Available for sale
- Evaluated by their fair value
Assets of the insured persons, assuming investment risk
The amount of technical provisions transferred to reinsurers
Receivables
Other assets
Equity
- Share capital
- Capital reserve
- Profit reserve
- Revaluation reserve
- Retained net profit and loss account
- Net profit and loss account of the financial year
- Unearned premium reserve
- Mathematical reserves
- Claims reserve
- Other technical provisions
Technical provisions in favor of life insured that assume investment
risk
Other reservations
Other liabilities
expl
anat
ion
Balance Sheet by Business Segments, in Accordance with SKL-2009
4b
4a
14
15
4b
4a
on 31.12.2012
Property
insurance
394,551,735
597,380
13,010,493
277,587
381,077
439,309
0
234,373,763
44,082,877
61,238,065
125,359,847
3,692,975
0
65,984,665
48,146,453
7,912,009
23,429,000
394,551,735
60,812,257
39,998,605
739,652
10,708,979
4,381,404
3,121,280
1,862,336
7,000,000
300,553,647
72,292,765
0
219,725,988
8,534,894
on 31.12.2011
437,825,232
5,260,012
1,220,104
0
48,099
47,658
240,000
294,461,325
24,755,718
89,423,242
174,397,454
5,884,911
121,875,865
292,537
1,403,834
297,033
12,678,765
437,825,232
38,296,820
15,427,686
2,072,254
3,085,537
2,547,704
8,951,690
6,211,948
0
258,449,789
530,905
244,441,033
13,477,851
0
830,361,653
5,857,392
14,230,597
277,587
429,176
486,967
240,000
528,835,088
68,838,595
150,661,307
299,757,300
9,577,885
121,875,865
66,277,201
49,550,287
6,193,728
36,107,765
830,361,653
99,109,077
55,426,291
2,811,907
13,794,516
6,929,109
12,072,970
8,074,284
7,000,000
559,003,436
72,823,670
244,441,033
233,203,839
8,534,894
Property
insurance
368,811,755
465,603
13,927,322
0
910,195
497,368
0
235,187,095
60,335,228
62,100,070
95,830,835
16,920,962
0
60,229,752
51,818,750
5,525,652
250,018
368,811,755
57,792,399
39,998,605
739,652
11,645,873
-1,838,831
46
7,247,053
7,000,000
273,057,269
74,347,697
0
193,296,153
5,413,418
0
125,131,712
125,131,712
4,020,602
0
10,146,756
12,018,474
1,170,608
0
9,020,757
5,755,547
5,191,209
0
19,167,513
15,758,707
Life insurance
Total
Life insurance
Total
393,089,139
6,343,868
1,318,018
0
0
49,000
190,000
275,218,490
32,606,279
89,555,830
145,855,978
7,200,404
107,045,539
198,268
1,674,803
947,451
103,703
393,089,139
29,747,214
15,427,686
2,072,254
11,854,468
-28,991
287,079
134,719
0
247,365,082
572,691
233,907,792
12,884,599
0
760,989,148
6,809,471
15,245,340
0
687,302
546,368
190,000
510,405,586
92,941,507
151,655,900
241,686,813
24,121,366
107,045,539
60,428,019
53,493,554
5,784,249
353,720
760,989,148
87,539,613
55,426,291
2,811,907
23,500,341
-1,867,823
287,125
7,381,772
7,000,000
520,422,350
74,920,388
233,907,792
206,180,753
5,413,418
0
101,805,961
101,805,961
3,734,987
0
14,660,016
12,567,084
1,116,167
222,892
8,662,464
4,169,359
4,851,153
0
23,322,480
16,047,590
129
in EUR
BUSINESS SEGMENT INCOME
NET INSURANCE PREMIUM REVENUE
- Charged gross premium
- Charged premium given in reinsurance and co-insurance
- Modification of unearned premium reserves
INCOME FROM INVESTMENT INTO CONNECTED CLIENTS
INVESTMENT INCOME
Out of which:
- income from interest
OTHER INSURANCE INCOME
Out of which:
- income from provisions
OTHER INCOME
BUSINESS SEGMENT CHARGES
NET CLAIMS CHARGES
- Charged gross amount of claims
- Charged shares of reinsurers and co-insurers
- Modification of claims reserves
MODIFICATION OF OTHER TECHNICAL RESERVATIONS
MODIFICATION OF TECH. RES. WITH ASSUMED INVESTMENT
RISK
BONUS AND REBATE CHARGES
OPERATING EXPENSES
Out of which:
- Depreciation
INVESTMENT CHARGES
Out of which:
- Impairment of financial assets not measured by their fair value
through the profit and loss account
OTHER TECHNICAL CHARGES
OTHER CHARGES
Out of which:
- Charges from financial liabilities
PROFIT AND LOSS ACCOUNT PRIOR TO TAXATION
INCOME TAX
NET PROFIT AND LOSS ACCOUNT OF THE BUSINESS SEGMENT
explana
tion
Profit and Loss Account Statement by Business Segments, in Accordance with SKL-2009
1.1. To 31.12.2012
20
Property
insurance
165,663,699
142,645,689
186,917,917
-45,125,015
852,788
4c
24
4c
1.1. to 31.12.2011
97,652,353
76,689,679
76,992,250
-366,265
63,694
263,316,052
219,335,368
263,910,167
-45,491,280
916,482
10,117,061
19,851,336
29,968,397
Property
insurance
159,089,808
135,062,147
187,839,066
-51,657,304
-1,119,740
126
11,000,990
9,679,173
896,498
10,575,671
9,378,562
3,221,776
164,158,633
100,649,794
106,264,347
-24,660,610
19,046,057
3,094,379
782,615
214,840
91,440,405
40,514,291
38,267,524
-122,653
2,369,420
4,258,661
10,161,177
3,436,617
255,599,039
141,164,085
144,531,871
-24,783,263
21,415,477
7,353,040
21,477,889
21,477,889
75,927
49,687,415
22,569,579
75,927
72,256,994
13,615,487
2,343,373
1,740,255
8,562,987
98,006
2,999,495
1,431,036
Life insurance
Total
Life insurance
89,622,516
75,240,065
75,404,821
-248,509
83,752
Total
13,266,946
248,712,324
210,302,087
263,243,887
-51,905,813
-1,035,988
126
24,268,062
10,456,325
677,077
11,133,402
9,974,795
2,570,220
150,153,924
88,777,227
97,143,594
-27,009,262
18,642,895
81,295
640,159
438,428
88,001,325
41,126,039
37,491,597
-59,318
3,693,760
5,430,034
10,614,954
3,008,648
238,155,249
129,903,266
134,635,191
-27,068,580
22,336,654
5,511,330
11,403,902
11,403,902
11,351
49,814,501
23,871,074
11,351
73,685,575
22,178,474
2,441,379
4,739,750
12,776,425
2,187,533
543,884
12,449,681
100,768
4,928,806
25,226,106
2,288,301
5,472,691
1,341,378
2,772,414
486,245
2,357,143
2,843,388
2,401,595
6,209,738
83,248
39,256
2,484,843
6,248,993
2,190,010
5,635,437
92,709
166,881
2,282,720
5,802,318
1,373,926
1,804,597
-299,531
100
5,709,935
502,013
1,374,026
7,514,532
202,482
1,196,180
12,036,101
-3,100,217
62
2,603,070
-981,879
1,196,242
14,639,171
-4,082,096
1,505,066
6,211,948
7,717,014
8,935,884
1,621,191
10,557,075
Statement of Comprehensive Income by Business Segments, in Accordance with SKL-2009
130
Explanati
on
in EUR
Property
insurance
Life insurance
TOTAL
1.1. To 31.12.2012
Property
insurance
Life insurance
TOTAL
1.1. to 31.12.2011
I.
NET PROFIT/LOSS OF FINANCIAL YEAR AFTER TAXATION
1,505,066
6,211,948
7,717,014
8,935,884
1,621,191
10,557,075
II.
OTHER COMPREHENSIVE INCOME AFTER TACATION
1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9)
6,220,235
2,576,696
8,796,931
-3,057,464
-1,909,973
-4,967,437
4.
7,453,132
3,033,539
10,486,671
-3,821,830
-2,387,467
-6,209,297
12
4.1.
Profit/loss recognized in revaluation surplus
5,701,600
2,431,210
8,132,810
-1,825,864
-2,532,781
-4.358.646
4.2.
Revaluation surplus profit/loss transfer into the profit and loss account
1,751,532
602,329
2,353,861
-1,995,966
145,315
-1.850.651
-1,232,897
-456,843
-1,689,740
764,366
477,493
1,241,859
7,725,302
8,788,643
16,513,945
5,878,420
-288,783
5,589,637
9.
Tax from other comprehensive income
III.
TOTAL COMPREHENSIVE INCOME OF THE FINANCIAL YEAR AFTER
TAXATION (I + II)
32
131
4a) The State of Mutual Receivables/Liabilities
Property insurance
in EUR
31.12.2012
Receivables
Life insurance
31.12.2011
31.12.2012
31.12.2011
1,999,664
282,597
15,650
406,256
-15,650
-406,256
-1,999,664
-282,597
Liabilities
Possible mutual relationships between reporting business segments are evaluated by the current
market prices. Relationships between segments that present receivables/liabilities, recorded by ZM for
each business segment separately, ZM doesn't include into the balance sum of ZM due to the
assurance of balance equilibration of internal relationship on the ZM level. The latter mutual
relationships arise from settlement of mutual ZM charges from the property insurance current account
and payment transactions in credit/charge of an incorrect current account.
4b) Deferred Taxes
The sum of deferred tax is in ZM balance sheet accounted in the sum of netted amount of deferred
taxes that fall off to an individual business segment, because ZM ascertains and settles the corporate
income tax for ZM as a whole.
Property
insurance
in EUR
31,12,2012
Netted receivables and liabilities total**
Life
insurance
31,12,2011
Netted receivables and
liabilities total*
31,12,2012
31,12,2011
31,12,2012
31,12,2011
1,174,147
910,195
1,892,674
246,726
3,066,821
1,156,921
-793,071
0
-1,844,575
-469,618
-2,637,645
381,077
910,195
48,099
-222,892
429,176
-469,618
687,302
*ZM level
**Business segment level
4c) Financial Revenue and Expenditure
in EUR
Property
insurance
1.1. until
31Dec
2012
1.1. until
31Dec
2011
Life
insurance
1.1. until
31Dec
2012
1.1. until
31Dec
2011
Financial revenue and
expenditure total
1.1. until
1.1. until
31Dec
31Dec
2012
2011
Investment income
10,117,061
11,001,115
19,851,336
13,266,946
29,968,397
24,268,062
Investment charges
1,740,255
543,884
2,999,495
4,928,806
4,739,750
5,472,691
132
EXPLANATIONS TO THE ACCOUNTING STATEMENTS
1. Intangible assets and long-term deferred acquisition costs
in EUR
Long-term deferred costs
- Other long-term accruals
Property rights
Intangible Assets
31.12.2012
31.12.2011
5,324,745
6,405,019
5,260,012
6,343,868
64,733
61,152
532,647
404,451
5,857,392
6,809,471
Under the intangible asset item ZM accounts non-monetary assets without physical existence software (in use and in acquisition) as well as long-term deferred expenses. There are no such
expenses among the intangible assets that ZM would create on its own or with the government
support.
Business liabilities due to the purchase of tangible capital assets, accounted among other liabilities,
amounted in 31 December 2012 to 13,172 EUR (31 December 2011: 63,680 EUR). Intangible assets
are not pawned as debt warranty nor exist any other legal limitations in relation to them.
Complete accounted intangible assets have a due date of utility and are depreciated with the use of
depreciation rates that remain unchanged, relative to the previous period. Depreciation of
depreciative intangible assets, recognized in the profit and loss account among operative costs,
amounted in 2012 to 177,738 EUR (2011: 125,516 EUR).
ZM decided that there was no need for intangible asset depreciation on 31 December 2012.
Trends in intangible assets in year 2012
in EUR
Property rights
Assets in
acquisition
Long-term
deferred costs
Total
1,004,767
0
6,405,019
7,409,787
0
305,933
681,706
987,640
305,933
-305,933
0
0
0
0
-1,761,981
-1,761,981
1,310,701
0
5,324,746
6,635,446
PURCHASE VALUE
Increase
Transfer between assets
Disposal
VALUE ADJUSTMENT
600,316
0
0
600,316
Depreciation (explanation 29)
177,738
0
0
177,738
778,054
0
0
778,054
Current value on 1.1.2012
404,451
0
6,405,019
6,809,471
532,647
0
5,324,745
5,857,392
Trends in intangible assets in year 2011
in EUR
Software
Assets in
acquisition
Long-term deferred
costs
Total
PURCHASE VALUE
849,145
0
9,630,886
10,480,031
Increase
155,622
0
550,085
705,707
0
0
-3,775,952
-3,775,952
1,004,767
0
6,405,019
7,409,787
Disposal
133
Software
Assets in
acquisition
Long-term deferred
costs
Total
474,800
0
0
474,800
125,516
0
0
125,516
600,316
0
0
600,316
374,346
0
9,630,886
10,005,232
404,451
0
6,405,019
6,809,471
in EUR
2. Land, Buildings and Equipment
31.12.2012
31.12.2011
Land
1,973,935
1,982,500
Buildings
7,762,261
8,700,862
Equipment and small tools
3,509,671
3,463,559
0
1,170
0
1,170
984,731
1,097,249
984,731
1,097,249
14,230,597
15,245,340
in EUR
Assets in acquisition
- for advance payment for equipment
and small tools
Investments in foreign tangible capital
assets
- for buildings
Land, Buildings and Equipment
Business liabilities of ZM due to the purchase of tangible capital assets, accounted among other
liabilities of ZM, amounted on 31 December 2011 to 276,899 EUR (2011: 362,408 EUR). Tangible
assets of ZM not pawned as debt warranty nor exist any other legal limitations in relation to them.
ZM did not change the depreciation rates in the accounting period. Depreciation of treated assets,
recognized in the profit and loss account among operative costs, amounted in 2012 to 2,264,030 EUR
(2011: 2,163,189 EUR).
ZM decided that there was no need for land, building and equipment asset depreciation on 31
December 2012.
Trends in tangible capital assets in year 2012
in EUR
Land
Buildings
Equipment
and small
tools
1,982,500
16,600,557
11,785,986
Assets in
acquisition
Investments
in foreign
tangible
capital
assets
Total
PURCHASE VALUE
1,170
1,469,379
31,839,591
Increase
0
0
0
1,538,707
56,559
1,595,266
Transfer to assets,
available for sale
Disposal
0
1,440
1,538,437
-1,539,877
0
0
-8,566
-468,558
0
0
0
-477,124
0
0
-1,075,748
0
-45,158
-1,120,905
1,973,935
16,133,439
12,248,675
0
1,480,780
31,836,828
0
7,899,695
8,322,427
0
372,129
16,594,252
0
680,970
1,417,745
0
165,314
2,264,030
0
-209,487
0
0
0
-209,487
Disposal
0
0
-1,001,169
0
-41,395
-1,042,563
0
8,371,178
8,739,004
0
496,049
17,606,230
Current value on 1 Jan 2012
1,982,500
8,700,862
3,463,559
1,170
1,097,249
15,245,340
1,973,935
7,762,261
3,509,671
0
984,731
14,230,597
VALUE ADJUSTMENT
134
Trends in tangible capital assets in year 2011
Assets in
acquisition
Investments in
foreign tangible
capital assets
Total
11,374,356
63,836
1,465,753
29,710,694
0
3,351,154
4,440
3,355,594
421,613
1,637,512
-3,413,820
0
0
0
-1,225,882
0
-814
-1,226,697
1,982,500
16,600,557
11,785,986
1,170
1,469,379
31,839,591
0
7,233,646
8,139,445
0
194,880
15,567,970
0
666,049
1,319,076
0
178,064
2,163,189
Disposal
0
0
-1,136,094
0
-814
-1,136,908
0
7,899,695
8,322,427
0
372,129
16,594,252
627,805
8,945,298
3,234,911
63,836
1,270,873
14,142,724
1,982,500
8,700,862
3,463,559
1,170
1,097,249
15,245,340
in EUR
Land
Buildings
Equipment
and small
tools
627,805
16,178,944
0
0
1,354,695
0
PURCHASE VALUE
Increase
Disposal
VALUE ADJUSTMENT
3. Non-Current Assets Held for Sale
31.12.2012
31.12.2011
0
0
Buildings
277,587
0
Total
277,587
0
in EUR
Land
In the reporting period, ZM allocated two business premises, which it does not intend to use for its
operations, on assets available for sale. Among assets available for sale are recognized also two
apartments, which it received in return of financial payment of matures receivables. In the beginning of
2013, ZM sold this apartment by recognized value.
Trends in non-current assets held for sale in year 2012
Land and buildings
Total
0
0
Reallocations during the year
277,587
277,587
277,587
277,587
Land and buildings
Total
in EUR
Trends in non-current assets held for sale in year 2011
in EUR
Reallocations during the year
59,003
59,003
-59,003
-59,003
0
0
4. Investment Property
31.12.2012
31.12.2011
Land
Buildings
15,305
471,662
17,684
528,684
Investment Property
486,967
546,368
in EUR
Among the investment real estate ZM accounts mostly apartments gained though recovery of
unsettled premiums. The apartments are occupied and are not unconditionally sellable, that is why
they are not listed in the group of assets available for sale. Due to sale limitation of such real estate it
is not possible to evaluate their fair value.
135
Among the investment real estate ZM includes also the real estate that is financed from long-term
business fund of classic life insurance. The investment real estate was acquired in return of agreed
rent payment. ZM can not sell this real estate during the time of rent payment due to the right of
personal servitude on the investment real estate of rent recepients. Due to stated limitation of power
over the investment real estate it is not possible to evaluate its fair values. Real estate return will be
realized only upon sale.
Investment properties of ZM are not pawned as debt warranty nor exist any other legal limitations in
relation to them.
Depreciation of investment real estate, recognized in profit and loss account under investment
charges, amounts to 36,061 EUR (2011: 38,843 EUR).
The insurance company decided that there was no need for investment property depreciation on 31
December 2012.
Trends in investment property in year 2012
Land
Buildings
Total
PURCHASE VALUE
Disposal
17,684
-2,379
15,305
1,358,403
-37,779
1,320,624
1,376,087
-40,158
1,335,929
VALUE ADJUSTMENT
Depreciation
Disposal
0
0
0
0
17,684
829,719
36,061
-16,817
848,962
528,684
829,719
36,061
-16,817
848,962
546,368
15,305
471,662
486,967
Land
Buildings
Total
17,684
1,491,350
1,509,034
in EUR
Trends in investment property in year 2011
in EUR
PURCHASE VALUE
Disposal
-
-132,947
-132,947
17,684
1,358,403
1,376,087
0
853,602
853,602
Depreciation
0
38,843
38,843
Disposal
0
-62,726
-62,726
0
829,719
829,719
17,684
637,748
655,432
17,684
528,684
546,368
VALUE ADJUSTMENT
Items recognized from investment property account statement
2012
2011
Income from rents
Direct business charges from investment property that
create revenue from rent
Direct business charges from investment property that do
not create revenue from rent
90,690
94,956
56,310
65,027
1,723
0
Profit from investment real estate disposal
22,944
77,880
in EUR
136
5. Investments in group companies and associates
31.12.2012
31.12.2011
240,000
190,000
0
0
240,000
190,000
in EUR
Amount
In %
As on 1 Jan 2010 = 31.12.2011
190,000
100
190,000
100
in EUR
Participation in affiliated companies
Loans given to group companies
Investments in group companies
Trends in ZM’s participation in affiliated Company Vivus d,o,o,
recapitalisation
50,000
100
240,000
100
Data on affiliated ZM companies
Headquarters
Capital
share of ZM
Share
capital
Connection type
Vivus d.o.o.
Karantanska 35, 2000 Maribor
100%
188,763
affiliated
Ornatus d.o.o.
100%
8,763
Indirect affiliated
Ornatus KC d.o.o.
100%
10,000
Indirect affiliated
Basic categories of accounting statements of ZM group companies
31.12.2012
in EUR
assets
Equity
Liabilities towards asset sources
Total revenues
Total expenditures
Profit and loss account
31.12.2011
Vivus d.o.o.
Ornatus d.o.o.
Ornatus KC* d.o.o*
Vivus d.o.o.
Ornatus d.o.o.
202,453
111,977
90,476
864,514
912,606
-48,092
179
-1,088
1,267
43,108
43,785
-677
7,609
2,477
5,132
33,703
41,226
-7,523
202,568
110,069
92,499
944,337
932,698
11,639
698
-411
1,109
57
2,151
-2,094
* established in 2012
6. Investments
In the reporting period, ZM did not realized any reallocation between financial investment groups. The
following categorization of financial investments on groups represent their recognition upon initial
recognition.
Financial investment of property insurances according to groups and sources of financing (long-term
business funds – KP or own sources)
31.12.2012
in EUR
OWN
SOURCE
Long-term
Business
Fund
31.12.2011
TOTAL
Long-term
Business
Fund
OWN
SOURCE
TOTAL
Loans and deposits
752,696
43,330,181
44,082,877
781,206
59,554,022
60,335,228
Loans
196,264
466,734
662,998
212,072
566,697
778,769
Deposits
date
Debt securities
556,432
42,863,447
43,419,879
569,134
58,987,325
59,556,459
0
61,238,065
61,238,065
0
62,100,070
62,100,070
0
61,238,065
61,238,065
0
62,100,070
62,100,070
Available for sale
4,025,112
121,334,735
125,359,847
1,361,019
94,469,816
95,830,835
Debt securities
2,308,780
112,473,998
114,782,778
122,522
82,506,440
82,628,962
- market
2,308,780
111,564,223
113,873,003
122,522
81,596,672
81,719,194
0
909,775
909,775
0
909,768
909,768
- non-market
137
31.12.2012
Long-term
Business
Fund
31.12.2011
Long-term
Business
Fund
in EUR
OWN
SOURCE
Equity shares
1,664,689
8,860,737
10,525,426
1,186,854
11,963,376
13,150,230
- market
1,421,642
7,235,241
8,656,883
943,807
8,978,764
9,922,571
243,047
1,625,496
1,868,543
243,047
2,984,612
3,227,659
- non-market
TOTAL
OWN
SOURCE
TOTAL
Other forms of fin. investments
and loss account
Debt securities
51,643
0
51,643
51,643
0
51,643
1,295,260
2,397,715
3,692,975
1,159,912
15,761,050
16,920,962
1,295,260
2,397,715
3,692,975
1,159,912
15,761,050
16,920,962
Investments NL
6,073,068
228,300,696
234,373,763
3,302,137
231,884,958
235,187,095
Financial investment of life insurances according to groups and sources of financing (business funds –
KS or own sources)
31.12.2012
in EUR
OWN
SOURCE
KS
31.12.2011
TOTAL
OWN
SOURCE
KS
TOTAL
Loans and deposits
6,000,009
18,755,709
24,755,718
212,341
32,393,938
32,606,279
Deposits
date
Debt securities
6,000,009
18,755,709
24,755,718
212,341
32,393,938
32,606,279
0
89,423,242
89,423,242
0
89,555,830
89,555,830
0
89,423,242
89,423,242
0
Available for sale
16,370,113
158,027,341
174,397,454
7,674,539
Debt securities
15,063,447
142,149,352
157,212,799
- market
15,063,447
141,239,577
156,303,024
909,775
909,775
- non-market
89,555,830
89,555,830
138,181,439
145,855,978
6,365,842
120,903,286
127,269,128
6,365,842
119,993,518
126,359,360
909,768
909,768
Equity shares
1,306,666
15,877,989
17,184,655
1,308,697
17,278,153
18,586,850
- market
1,004,131
15,736,626
16,740,757
1,006,162
16,278,169
17,284,331
302,535
141,363
443,898
302,535
999,984
1,302,519
2,617,411
3,267,500
5,884,911
2,260,904
4,939,500
7,200,404
- non-market
By the fair value through
Debt securities
Investments LI
2,617,411
3,267,500
5,884,911
2,260,904
4,939,500
7,200,404
24,987,533
269,473,792
294,461,324
10,147,784
265,070,707
275,218,491
Financial investment according to groups and sources of financing
31.12.2012
in EUR
Loans and deposits
Loans
Deposits
date
Debt securities
OWN
SOURCE
KP/KS
6,752,705
31.12.2011
TOTAL
62,085,890
68,838,595
OWN
SOURCE
KP/KS
993,547
TOTAL
91,947,960
92,941,507
196,264
466,734
662,998
212,072
566,697
778,769
6,556,441
61,619,156
68,175,597
781,475
91,381,263
92,162,738
0
150,661,307
150,661,307
0
151,655,900
151,655,900
0
150,661,307
150,661,307
0
151,655,900
151,655,900
Available for sale
20,395,225
279,362,076
299,757,300
9,035,558
232,651,255
241,686,813
Debt securities
17,372,227
254,623,350
271,995,577
6,488,364
203,409,726
209,898,090
- market
17,372,227
252,803,800
270,176,027
6,488,364
201,590,190
208,078,554
0
1,819,550
1,819,550
0
1,819,536
1,819,536
- non-market
Equity shares
2,971,355
24,738,726
27,710,081
2,495,551
29,241,529
31,737,080
- market
2,425,773
22,971,867
25,397,640
1,949,969
25,256,933
27,206,902
545,582
1,766,859
2,312,441
545,582
3,984,596
4,530,178
51,643
0
51,643
51,643
0
51,643
3,912,671
5,665,215
9,577,885
3,420,816
20,700,550
24,121,366
3,912,671
5,665,215
9,577,886
3,420,816
20,700,550
24,121,366
31,060,601
497,774,488
528,835,088
13,449,921
496,955,665
510,405,586
- non-market
Other forms of fin.
investments
By the fair value through
Debt securities
Investments ZM
138
Trends in investments in year 2012
Equity
shares
Debt
securities
Deposits
Loans
Total
13,201,872
4,000,000
0
-5,897,374
668,936
161,649,995
49,735,808
-10,530,039
-33,046,167
7,153,758
59,556,458
216,086,155
-234,357,112
0
0
778,770
362,302
-525,029
0
0
235,187,095
270,184,265
-245,412,180
-38,943,541
7,822,694
34,418
-365,886
0
0
-331,468
-1,430,784
0
0
0
-1,430,784
0
0
10,577,068
281,298
4,835,055
179,713,822
0
2,134,373
43,419,874
0
46,956
662,999
281,298
7,016,384
234,373,763
18,586,850
2,550,000
0
-3,441,674
817,115
224,025,361
76,611,748
-51,570,788
-13,334,275
11,333,416
32,606,280
96,309,215
-104,469,380
0
0
0
0
0
0
0
275,218,491
175,470,963
-156,040,168
-16,775,949
12,150,531
13,743
-1,618,873
0
0
-1,605,130
-1,341,378
0
0
0
-1,341,378
0
0
17,184,656
758,707
6,315,654
252,520,950
0
309,604
24,755,719
0
0
0
758,707
6,625,258
294,461,325
31,788,722
6,550,000
0
-9,339,048
1,486,051
385,675,356
126,347,556
-62,100,827
-46,380,442
18,487,174
92,162,738
312,395,370
-338,826,492
0
0
778,770
362,302
-525,029
0
0
510,405,586
445,655,228
-401,452,348
-55,719,490
19,973,225
48,161
-1,984,759
0
0
-1,936,598
-2,772,162
0
0
0
-2,772,162
0
0
1,040,005
11,150,709
0
2,443,977
0
46,956
1,040,005
13,641,642
27,761,724
432,234,772
68,175,593
662,999
528,835,088
Equity
shares
Debt
securities
Deposits
Loans
9,881,532
136,568,963
56,991,117
899,876
204,341,488
New acquisitions
4,870,162
147,896,714
291,382,272
246,730
444,395,878
0
-33,182,304
0
0
-33,182,304
in EUR
investments NL
New acquisitions
Maturity
Disposal
Change of fair value - in capital
Change of fair value - from capital in profit/loss
account - sales
account - impairment
Change of fair value through profit/loss account
Change of amortized costs
Investments LI
New acquisitions
Maturity
Disposal
account - sales
Investments ZM
New acquisitions
Maturity
Disposal
account - sales
Trends in investments in year 2011
in EUR
Total
Financial assets NL
Transfer between investment groups*
Maturity
0
-70,357,378
-290,995,463
-414,493
-361,767,334
Disposal
-1,000,136
-21,000,840
0
0
-22,000,976
-64,013
-6,159,932
0
0
-6,223,945
322
2,523,753
0
0
2,524,075
-485,995
0
0
0
-485,995
account - sales
0
-41,294
0
0
-41,294
0
5,402,313
2,178,532
46,657
7,627,502
13,201,872
161,649,995
59,556,458
778,770
235,187,095
139
Equity
shares
in EUR
Debt
securities
Deposits
Loans
Total
Financial assets LI
21,435,398
227,553,891
28,972,623
0
277,961,912
1,999,984
120,313,820
105,103,173
0
227,416,977
0
-72,738,119
0
-72,738,119
Maturity
0
-25,684,219
0
101,505,755
0
0
-127,189,974
New acquisitions
Disposal
account - sales
0
-27,719,161
0
-27,719,161
-2,500,736
-9,271,400
0
0
-11,772,136
9,347
1,604,645
0
0
1,613,992
-2,357,143
0
0
0
-2,357,143
0
-121,168
0
0
-121,168
0
10,087,071
36,239
0
10,123,310
18,586,850
224,025,361
32,606,280
0
275,218,491
Financial assets total
31,316,930
364,122,854
85,963,740
899,876
482,303,400
6,870,146
268,210,534
105,920,423
396,485,445
246,730
671,812,855
0
0
-105,920,423
New acquisitions
0
Maturity
0
-96,041,597
392,501,218
414,493
-488,957,308
Disposal
-1,000,136
-48,720,001
0
0
-49,720,137
account - sales
-2,564,749
-15,431,332
0
0
-17,996,081
9,669
4,128,398
0
0
4,138,067
-2,843,138
0
0
0
-2,843,138
0
-162,462
0
0
-162,462
0
15,489,384
2,214,771
46,657
17,750,812
31,788,722
385,675,356
92,162,738
778,770
510,405,586
*transfer of financial investments from the 'available for sale' group to the 'in possession until maturity' group
Among financial investments of ZM the investment into bonds of banks that present subordinate
instruments with the issuer, represent 21,386,001 EUR (2011: 29,588,542 EUR).
Financial Investments into Bonds
in EUR
31.12.2012
Fair value
31.12.2011
Amortized cost
Fair value
Amortized cost
Government bonds
274,404,000
266,272,475
259,826,465
262,216,798
Other bonds
157,830,768
145,780,277
125,848,887
105,235,471
Bonds total*
432,234,768
412,052,752
385,675,352
367,452,269
*bonds of own fund, business fund and long-term business fund of classical life
insurance
Book and fair value of financial investments
31.12.2012
in EUR
Book value
Loans and deposits
31.12.2011
fair
value
Book value
fair
value
68,838,595
99,431,534
92,941,507
92,941,507
150,661,307
150,769,899
151,655,900
143,360,390
Available for sale
299,757,300
299,757,300
241,686,813
241,686,813
9,577,885
9,577,885
24,121,366
24,121,366
528,835,087
559,536,618
510,405,586
502,110,076
By the fair value through profit and loss account
Bonds total*
*bonds of own fund, business fund and long-term business fund of classical life insurance
140
In the following table we display the allocation of investments evaluated by the fair value of each level,
in regard to defining fair value of individual investment. ZM assumes that the book value of deposits is
an accurate enough proxy of their fair value.
Analysis of financial investments evaluated according to fair value based on its determination
in EUR
Level 1
Level 2
Total
Level 1
Level 2
Total
3,692,975
0
3,692,975
16,920,962
0
16,920,962
3,692,975
0
3,692,975
16,920,962
0
16,920,962
Available for sale
122,529,884
909,775
123,439,659
91,641,765
909,768
92,551,533
Debt securities
113,873,002
909,775
114,782,777
81,719,194
909,768
82,628,962
8,656,882
0
8,656,882
9,922,571
0
9,922,571
126,222,859
909,775
127,132,634
108,562,727
909,768
109,472,495
5,884,911
0
5,884,911
7,200,404
0
7,200,404
investments NL
and loss account
Debt securities
Equity shares
Total NL
Investments LI
and loss account
Debt securities
5,884,911
0
5,884,911
7,200,404
0
7,200,404
Available for sale
173,043,781
909,775
173,953,556
143,643,691
909,768
144,553,459
Debt securities
156,303,024
909,775
157,212,799
126,359,360
909,768
127,269,128
Equity shares
16,740,757
16,740,757
17,284,331
Total LI
Total financial investments
and loss account
Debt securities
17,284,331
178,928,692
909,775
179,838,467
150,844,095
909,768
151,753,863
9,577,886
0
9,577,886
24,121,366
0
24,121,366
9,577,886
0
9,577,886
24,121,366
0
24,121,366
Available for sale
295,573,665
1,819,550
297,393,215
235,285,456
1,819,536
237,104,992
Debt securities
270,176,026
1,819,550
271,995,576
208,078,554
1,819,536
209,898,090
Equity shares
25,397,639
0
25,397,639
27,206,902
0
27,206,902
305,151,551
1,819,550
306,971,101
259,406,822
1,819,536
261,226,358
Total financial investments
For valuation of debt securities that do not quote at an organized market, ZM uses the evaluation
model, according to which the demanded profitability per share on evaluation date is defined based on
the market interest rate analysis. By that it is considered its maturity as well as credit rate and/or
issuer quality rate. Profitability defined in such a way is used in the bond depreciation plan as discount
rate with help of which the bond price at given demanded profitability is calculated. Such price is used
for evaluation of debt security (bond).
Among investments available for sale ZM also accounts in the balance sheet the investments
evaluated by their acquisition cost in the sum of 2,364,085 EUR (2011: 4,581,821 EUR). In the
reporting period, ZM did not realize profits or losses from sale of financial investments, but it
accounted impairment of financial investments in the amount of 2,217,736 EUR. In 2011, it realized
profits in the amount of 135,478 EUR.
When evaluating the evidence for the purpose of establishing the needs for eventual impairment of an
investment or a group of investments available for sale, ZM evaluates whether it is a trend of a
26
significant and a long-term drop in the financial investment fair value . In 2012, ZM accounted
impairment on this account in the amount of 2,772,163 EUR (2011: 2,843,138 EUR).
26
Detailed criteria for recognition of investment impairment are given under accounting policy.
141
7. Assets of the insured persons, assuming investment risk
Financial investments representing the assets of the insured persons with underwritten unit-linked life
insurance are by the nature of insurance agreements mostly categorized under the group of financial
assets by their fair value of which movement is recognized directly in the profit and loss account
statement.
Assets of the insured persons assuming the investment risk, by financial asset groups
in EUR
31.12.2012
31.12.2011
266,670
7,666,168
266,670
7,666,168
7,765,408
4,185,351
Loans and deposits
Deposits
By the fair value through profit and loss account
113,843,787
95,194,021
Domestic mutual funds
38,217,698
29,620,849
Foreign mutual funds
66,780,859
57,839,987
8,845,230
7,733,184
121,875,865
107,045,539
Debt securities
Total
Trends in assets of the insured persons assuming the investment risk in year 2012
Equity shares
Debt securities
Deposits
Total
87,460,838
11,918,534
7,666,167
107,045,540
Increase during the year
30,100,920
4,692,103
31,756,180
66,549,203
Acquisitions
Change of fair value through profit/loss
account
24,722,306
3,552,308
31,727,846
60,002,460
5,378,614
1,112,046
0
6,490,660
0
27,749
28,334
56,083
Decrease during the year
12,563,200
0
39,155,677
51,718,877
Disposal, maturity
12,563,200
0
39,155,677
51,718,877
104,998,558
16,610,637
266,670
121,875,865
in EUR
Trends in assets of the insured persons assuming the investment risk in year 2011
Equity shares
Debt securities
Deposits
Total
Increase during the year
Acquisitions
Change of fair value through
profit/loss account
Decrease during the year
Disposal, maturity
Change of fair value through
profit/loss account
78,006,582
24,835,167
20,506,409
9,891,481
2,749,362
2,643,396
4,345,789
31,635,207
31,566,472
92,243,853
59,219,736
54,716,277
in EUR
4,328,758
0
0
4,328,758
0
15,380,911
9,254,525
105,966
722,309
0
68,735
28,314,829
28,305,320
174,701
44,418,049
37,559,845
6,126,386
650,219
0
6,776,605
0
72,090
9,509
81,599
87,460,838
11,918,534
7,666,167
107,045,539
8. Amount of Technical Provisions Transferred to Co-Insurers and Reinsurers
in EUR
31.12.2012
31.12.2011
Reinsurance Agreements
- from unearned premium reserves
- from claims reserves
- from bonus and rebate provisions
Co-insurance Agreements
- from claims reserves
66,147,301
11,143,338
54,967,406
36,557
129,900
129,900
60,305,204
12,740,443
47,521,234
43,527
122,815
122,815
Total
66,277,201
60,428,019
142
Recognized assets of reinsurers and coinsurers belong in their entirety to the reporting segment of
property insurance and according to their maturity represent short-term assets of ZM.
Recognized reinsurance assets are in 97.34 percent (2011: 98.1 percent) bound to the
Pozavarovalnica Sava d.d..
ZM estimates that the book value of receivables from reinsurance agreements, accounted as the
amount of technical provisions transferred to co- and reinsurers, is the same as their repayment value
that is why ZM did not impair the recognized reinsurance assets. The book value of assets represents
an accurate enough proxy of their fair value.
The reinsurance business account (reinsurance purchase) that is included into the profit and loss
account amounts to -5,927,445 EUR (2011: -17,157,030 EUR).
9. Receivables
31.12.2012
in EUR
Receivables from
operations
on policyholders
insurance
Initial
value
31.12.2011
Impairment
Current
value
Initial
value
Impairment
Current
value
73,057,073
-35,300,127
37,756,946
73,135,659
-32,259,181
40,876,477
53,049,447
-16,944,013
36,105,434
52,908,354
-13,703,635
39,204,720
On insurance brokers
1,249,833
-120,152
1,129,680
1,310,467
-123,107
1,187,360
Recourse receivables
18,388,759
-18,229,946
158,813
18,593,373
-18,427,767
165,606
369,035
-6,016
363,019
323,464
-4,672
318,792
8,391,412
0
8,391,412
11,011,185
0
11,011,185
8,217,792
0
8,217,792
10,854,813
0
10,854,813
173,620
0
173,620
156,372
0
156,372
Other receivables
Receivables
from
coinsurance and reinsurance
On reinsurers
On co-insurers
Other receivables
Total
3,395,767
0
3,395,767
1,713,288
-107,396
1,605,891
84,844,252
-35,300,127
49,544,125
85,860,131
-32,366,578
53,493,554
In accordance with its accounting policy ZM evaluates the fair – cashable value of receivables in each
reporting period. When evaluating short-term value of receivables in this reporting period the
insurance company changed the assessment and entirely impair all receivables with maturity longer
than 24 months (2011: 100 percent impairment was recognized in receivables with maturity of 36
months or longer). The effect of assessment change influenced on higher charges from recognized
impairment of receivables. Due to the change the charges are higher for 1,531,434 EUR. The
formation or the withdrawal of revaluation are accounted directly in the profit and loss account. In the
reporting period, ZM recognized the receivable impairments in the amount of 3,430,620 EUR (2011:
3,617,365 EUR) and final cancellations due to inability of recovery of mature receivables in the
amount of 1,321,351 EUR (2011: 929,315 EUR).
10. Other assets
in EUR
Stocks
31.12.2012
31.12.2011
52,661
96,788
Active accruals
6,141,067
5,687,461
Other assets
6,193,728
5,784,249
ZM estimates that the book value of assets represents an accurate enough proxy of their fair value.
143
Trends in active accruals in year 2012
1.1.2012
in EUR
Previously unaccounted revenue
Short-term deferred costs
- Other deferred costs
Decrease
31.12.2012
266,628
233,865
-306,973
193,520
5,420,161
2,010,406
-1,483,692
5,946,875
5,196,070
250,262
0
5,446,332
224,091
1,760,144
-1,483,692
500,543
672
437,030
-437,030
672
5,687,461
2,681,301
-2,227,696
6,141,067
Short-term deferred charges
Active accruals
Increase
Trends in active accruals in year 2011
1.1.2011
in EUR
Previously unaccounted revenue
Short-term deferred costs
Decrease
31.12.2011
329,969
229,090
-292,431
266,628
4,927,217
5,687,867
-5,194,923
5,420,161
4,734,694
4,273,318
-3,811,942
5,196,070
192,523
1,414,549
-1,382,981
224,091
672
876,420
-876,420
672
5,257,858
6,793,377
-6,363,774
5,687,461
- Other deferred costs
Short-term deferred charges
Active accruals
Increase
11. Cash and Cash Equivalents
in EUR
31.12.2012
31.12.2011
Cash in hand
51,712
57,264
Cash in bank
107,650
124,297
Cash equivalents
35,948,403
172,159
Cash and cash equivalents
36,107,765
353,720
In accordance with accounting policies cash equivalents also include overnight deposits in the amount
of 35,947,598 EUR.
12. Equity
Structure of ZM’s equity
in EUR
Share capital
Capital reserve
- General revaluation adjustment of the capital
31.12.2012
31.12.2011
55,426,291
55,426,291
2,811,907
2,811,907
2,811,907
2,811,907
Profit reserve
13,794,516
23,500,341
Capital reserve
11,085,258
11,085,258
2,709,258
3,066,528
- Risk equalization reserves
- Other reserves from profit
Revaluation reserve
- From fair value change in financial assets
0
9,348,555
6,929,109
-1,867,823
8,151,893
-2,334,778
- Charged liabilities from deferred taxes
-1,222,784
466,956
Retained net profit and loss account
12,072,970
287,125
Equity total
8,074,284
7,381,772
99,109,077
87,539,613
144
Share capital
Share capital amounts to 55,426,291 EUR and is divided to 12,453,831 EUR regular, freely
transferable no-par value stocks that do not run on nominal value; each of them has the same share
and corresponding amount in ZM's share capital.
Share capital and number of shares issued have not changed during the reporting period.
Book value of Shares
31.12.2012
31.12.2011
99,109,077
Book value of Shares
87,539,613
7.96
12,453,831
7.03
12,453,831
Capital reserve
Capital reserves may not be used under conditions and for purposes defined by the law. Capital
reserves amounted on 31 December 2012 to 2,811,907 EUR and are entirely related to the
revaluation adjustment of the capital, which was recognized upon transfer to IFRS as capital reserve.
There were no trends in the capital reserves during the reporting period.
Profit reserve
Reserve items represent legal reserves that the insurance company can form and use in accordance
to Insurance Act provisions and ZM rules. Statutory reserves can be formed up to 20 percent of the
share capital. Statutory reserves preserve the value from previous reporting period and amount to
11,085,258 EUR.
The Management Board allocated the amount of other profit reserves in the amount of 9,348,555 EUR
among retained net profits.
The decision on detailed rules and minimum standards to be applied in the calculation of technical
provisions imposes insurance companies recognition of equalization provisions and their stating
among technical provisions and their formation and withdrawal through the profit and loss account.
Stated is not in compliance with IFRS. Consequently, ZM recognizes and accounts the equalization
provisions as a separate item of profit reservation in equity as expected by the Decision on annual
report and quarterly financial statements of insurance undertakings SKL 2009 (including the
amendment from the Official Gazette of RS 99/2010).
In case equalization provisions would be stated among technical provisions, they would be higher for
2,709,258 EUR and would amount 561,712,694 EUR in total.
All though the equalization provisions represent balanced equity item they are regarded as business
fund liability for which coverage from investment is required.
Recognized result of the reporting period in the balance sheet in the amount of 8,074,284 EUR (2011:
9,735,148 EUR) is for 357,270 EUR higher than the profit and loss account established in the profit
and loss account statement. In accordance with the obligatory methodology for calculation of credit
insurance equalization provisions, the amount represents partial abolishment of equalization
provisions. Equalization provisions are accounted in the profit reserves. As in previous years, the
abolishment of equalization provision is recognized trough the statement of equity trends.
The total recognized net profit of the accounting period stayed unallocated and is a part of
distributable profit of the accounting period.
The trend in individual equity items is represented in the equity modification account in which it
includes states and modifications of all equity components.
Fair value reserve includes cumulative fair value modification of financial assets, available for sale. A
part of the revaluation reserve that would according to the insurance agreements belong to the insured
persons if it were actually realized on the market, ZM accounts among technical provisions.
145
in EUR
31.12.2012
Revaluation reserve
- stated in capital
- stated between technical provisions
31.12.2011
14,833,994
6,929,109
7,904,885
-365,044
-1,867,823
1,502,779
Trends in revaluation surplus shown in capital in 2012
BF of classic life
insurance
in EUR
Total
375,695
-2,243,517
-1,867,821
3,767,742
6,895,826
10,663,568
1,341,378
1,430,785
2,772,164
1,619,406
304,710
1,924,117
-6,402,106
0
-6,402,106
1,274,106
-1,434,918
-160,812
1,976,222
4,952,886
6,929,109
- Change in revaluation reserve
Transfer of revaluation reserve to profit/loss account sale
Transfer of revaluation reserve to profit/loss account impairment
Transfer of revaluation surplus to mathematical
reserves of classic life insurances
Transfer of deferred tax liabilities
Other investments
Trends in revaluation surplus shown in capital in 2011
BF of classic life
insurance
in EUR
- Change in revaluation reserve
Transfer of revaluation reserve to profit/loss
Transfer of revaluation reserve to profit/loss
account - sale
Transfer of revaluation surplus to mathematical
reserves of classic life insurances
Transfer of deferred tax liabilities
Other investments
Total
1,871,236
1,228,379
3,099,616
-11,959,706
-2,301,789
-14,261,495
2,357,143
485,995
2,843,138
-1,613,992
-2,524,076
-4,138,068
7,851,588
0
7,851,588
1,869,426
867,974
2,737,400
375,695
-2,243,517
-1,867,823
13. Subordinate liabilities
Subordinate liabilities are in their entirety represented by the issued bonds
Type of bond
Dematerialized register bond, one issue
Issue date
25.8.2008
Maturity date of last coupon and principal
25.8.2015
Coupon interest rate
Fixed rate of 7.5% annual
Nominal value of the issue
7,000,000
Volume of the issue
700 lots, with nominal value of EUR 10,000
The ZMV2 issued bond does not include the clause of recall prior to their maturity and it does not
assure the right to exchange for other securities.
The book value of subordinate bonds on 31 December 2012 amounts to 7,000,000 EUR (2011:
7,000,000 EUR). ZM accounts coupon interests accruing from subordinate bonds among accruals.
They amount to 52,500 EUR (2011. 52,500 EUR).
Trends in subordinate liabilities of ZM in 2012
in EUR
Bond ZVM2
Subordinate
liabilities
Balance on 1 Jan
2012
7,000,000
0
0
Balance on 31 Dec
2012
7,000,000
0
0
7,000,000
Revaluation interests
7,000,000
Payment
146
Trends in subordinate liabilities of ZM in 2011
in EUR
Bond ZVM2
Balance on 1 Jan
2011
7,000,000
Subordinate
liabilities
0
0
Balance on 31 Dec
2011
7,000,000
0
0
7,000,000
Revaluation interests
7,000,000
Payment
In the amount of 2,800,000 EUR (2011: 4,200,00 EUR), subordinate bonds are included into the
calculation of capital adequacy of ZM as additional capital item.
14. Technical provisions
Technical provisions from insurance contracts of property insurances
in EUR
31.12.2012
31.12.2011
UNEARNED PREMIUM RESERVES
72,229,983
74,284,990
62,782
62,707
-11,109,657
-12,731,551
Gross unearned premium reserve
72,292,765
74,347,697
Net unearned premium reserve
61,183,108
61,616,146
Provisions for incurred and reported claims - inventory
58,822,612
49,159,146
Provisions for incurred but not reported claims - IBNR
149,274,828
135,162,155
-785,127
-938,912
12,244,079
9,720,654
169,596
193,110
-54,708,551
-47,331,858
-129,900
-122,815
Gross claims reserve
219,725,988
193,296,153
Net claims reserve
164,887,537
145,841,480
Share of unearned premium reserves in coinsurance
Share of provisions in reinsurance
CLAIMS RESERVE
Recourse provisions
Provision for valuation costs
Share of provisions assumed from co-insurances
Share of provisions given in co-insurance
OTHER TECHNICAL PROVISIONS
94,602
67,505
Provisions for non-lapse risks
8,440,292
5,345,913
-36,557
-43,527
Gross other technical provisions
8,534,894
5,413,418
Net other technical provisions
8,498,337
5,369,891
Gross technical provisions total
300,553,647
273,057,269
Technical provisions in co-insurance and
reinsurance (explanation 8)
-65,984,665
-60,229,752
Net technical provisions total
234,568,982
212,827,517
147
Technical provisions from insurance contracts of classic life insurances
Among mathematical reserves ZM also accounts a share of provisions for fair value modification of
investments allocated into the group of financial assets available for sale. In case of sale of such an
investment, 80 percent of sale profit would be allocated to the insured persons with classic life
insurance according to the insurance terms and conditions. The revaluation reserve amounts to
7,904,885 EUR (2011: 1,502,779 EUR). The amount is impaired for the value of deferred tax by 15
percent rate.
in EUR
31.12.2012
31.12.2011
530,905
572,691
Share of unearned premium reserves in reinsurance
-33,681
-8,892
530,905
572,691
497,224
563,799
in EUR
31.12.2012
31.12.2011
MATHEMATICAL RESERVES
236,536,148
232,405,013
7,904,885
1,502,779
Gross mathematical reserves
244,441,033
233,907,792
Net mathematical reserves
244,441,033
233,907,792
Revaluation reserve to policyholders
CLAIMS RESERVE
1,398,032
1,461,338
10,646,871
10,220,167
Net claims reserve
1,432,947
1,203,094
13,477,851
12,884,599
13,477,851
12,884,599
258,449,789
247,365,082
-33,681
-8,892
258,416,108
247,356,190
Technical provisions from insurance contracts
in EUR
31.12.2012
31.12.2011
Share of unearned premium reserves in coinsurance
72,760,888
74,857,681
62,782
62,707
-11,143,338
-12,740,443
Gross unearned premium reserve total
72,823,670
74,920,388
Net unearned premium reserve total
61,680,332
62,179,945
CLAIMS RESERVE
60,220,643
50,620,484
159,921,699
145,382,322
-785,127
-938,912
13,677,027
10,923,748
Recourse provisions
Share of provisions assumed from co-insurances
Share of provisions given in co-insurance
169,596
193,110
-54,708,551
-47,331,858
-129,900
-122,815
Gross claims reserve total
233,203,839
206,180,753
Net claims reserve total
178,365,388
158,726,079
148
31.12.2012
in EUR
31.12.2011
MATHEMATICAL RESERVES
244,441,033
Share of mathematical reserves in reinsurance
233,907,792
0
0
Gross mathematical reserves total
244,441,033
233,907,792
Net mathematical reserves total
244,441,033
233,907,792
OTHER TECHNICAL PROVISIONS
94,602
67,505
Provisions for non-lapse risks
8,440,292
5,345,913
-36,557
-43,527
Gross other technical provisions total
8,534,894
5,413,418
Net other technical provisions total
8,498,337
5,369,891
559,003,436
520,422,350
-66,018,346
-60,238,644
492,985,090
460,183,706
Trends in Technical Provisions in year 2012
Balance on 1. Jan
2012
in EUR
Increase
Balance on 31
Dec 2012
Decrease
Property insurance
Claims reserve
Total
74,347,697
70,566,965
-72,621,898
72,292,765
193,296,153
67,463,414
-41,033,579
219,725,988
67,505
91,391
-64,295
94,602
5,345,913
7,627,959
-4,533,580
8,440,292
273,057,268
145,749,729
-118,253,351
300,553,647
Life insurance
Claims reserve
Revaluation reserve belonging to
policyholders
Total
572,691
83,704
-125,489
530,905
12,884,600
3,077,702
-2,484,451
13,477,851
232,405,013
26,934,962
-22,803,827
236,536,148
1,502,779
6,402,106
0
7,904,885
245,862,303
36,498,474
-25,413,767
258,449,789
Total
74,920,388
70,650,669
-72,747,387
72,823,670
Claims reserve
206,180,753
70,541,116
-43,518,030
233,203,839
policyholders
232,405,013
26,934,962
-22,803,827
236,536,148
1,502,779
6,402,106
0
7,904,885
Total
67,505
91,391
-64,295
94,602
5,345,913
7,627,959
-4,533,580
8,440,292
520,422,350
182,248,203
-143,667,118
559,003,436
Trends in Technical Provisions in year 2011
in EUR
Increase
Decrease
Property insurance
Claims reserve
Total
74,166,824
72,466,337
-72,285,464
74,347,697
176,160,408
59,626,839
-42,491,094
193,296,153
66,989
32,953
-32,436
67,505
5,264,618
5,585,441
-5,504,146
5,345,913
255,658,839
137,711,569
-120,313,140
273,057,268
149
in EUR
Balance on 1
Jan 2011
Increase
Balance on 31
Dec 2011
Decrease
Life insurance
650,180
887,348
-964,838
572,691
9,761,592
5,715,898
-2,592,890
12,884,600
227,075,487
28,819,183
-23,489,658
232,405,013
7,484,942
0
-5,982,163
1,502,779
237,487,259
35,422,430
-27,047,386
247,365,082
74,817,004
73,353,685
-73,250,302
74,920,388
Claims reserve
185,922,000
65,342,737
-45,083,984
206,180,753
227,075,487
28,819,183
-23,489,658
232,405,013
7,484,942
0
-5,982,163
1,502,779
66,989
32,953
-32,436
67,505
5,264,618
5,585,441
-5,504,146
5,345,913
500,631,039
173,133,999
-153,342,689
520,422,350
Claims reserve
policyholders
Total
Total
policyholders
Total
15. Technical provisions in favor of life insured that assume investment risk
31.12.2012
in EUR
31.12.2011
18,083
15,203
18,083
15,203
18,083
15,203
119,046,071
97,568,849
Gross mathematical reserves
119,046,071
97,568,849
Net mathematical reserves
119,046,071
97,568,849
868,929
710,409
4,722,142
3,179,853
476,486
331,648
Claim reserve
-258,855
-189,376
6,067,558
4,221,910
Net claims reserve
5,808,703
4,032,534
125,131,712
101,805,961
-258,855
-189,376
124,872,857
101,616,586
Trends in technical provisions for insurance with investment risk in year 2012
in EUR
Claims reserve
Total
Balance on 1
Jan 2012
15,203
Increase
Decrease
4,669
-1,789
Balance on
31 Dec 2012
18,083
4,221,910
3,153,799
-1,308,151
6,067,558
97,568,849
29,642,453
-8,165,231
119,046,071
101,805,961
32,800,921
-9,475,170
125,131,712
150
Trends in technical provisions for insurance with investment risk in year 2011
in EUR
Balance on 1
Jan 2011
Increase
Decrease
Balance on 31
Dec 2011
12,573
17,088
-14,458
15,203
3,622,776
1,693,248
-1,094,114
4,221,910
86,167,784
20,858,759
-9,457,694
97,568,849
Total
89,803,133
22,569,095
-10,566,266
101,805,961
Claims reserve
16. Other reservations
31.12.2012
in EUR
Provisions for employees
Other reservations
Other reservations total
31.12.2011
5,045,724
4,479,000
145,486
372,153
5,191,209
4,851,153
Among employee provisions the insurance company accounts the provisions for long-service awards
and retirement indemnity that the employees are entitled to in accordance with employment
agreements or the collective wage agreement of ZM.
The insurance company establishes provisions for employees based on actuary calculations with
inclusion of suspected mortality from Slovenian mortality tables 2007, employee fluctuation and
liabilities growth (expected nominal growth of salaries is 4.57 percent annually (2011: 4.74) and
expected growth of long-service awards is 3 percent). For the calculation of short-term expected cash
flow value the Euro area yield curve on 31 December 2012 based on AAA rated government bonds is
used.
Other provisions represent amounts of recognized in accordance with the Vocational Rehabilitation
and Employment of Disabled Persons Act. Amounts from quota surplus rewards and amounts from
exempt contributions for PIZ can be used solely for disabled persons employed in the insurance
company for the purpose defined by the legislation.
Trends in other provisions in 2012
in EUR
Provisions for
employees
Other reservations
4,479,000
Total
372,153
4,851,153
650,065
Increase
564,015
86,050
Elimination
273,919
-307,176
-33,257
-271,211
0
-271,211
0
-5,541
-5,541
5,045,724
145,486
5,191,209
Payment/decrease
Depreciation*
*intended for covering charges of capital asset depreciation for disabled workers
Trends in other provisions in 2011
in EUR
Provisions for
employees
Other reservations
Total
4,004,776
284,772
4,289,548
516,889
67,332
584,221
Elimination
-633,536
0
633,536
Payment/decrease
-676,201
24,478
-651,723
Increase
Depreciation*
0
-4,429
-4,429
4,479,000
372,153
4,851,153
*intended for covering charges of capital asset depreciation for disabled workers
151
17. Deferred Tax Receivables/Liabilities
Receivables
in EUR
31.12.2012
Netted receivables and
liabilities total
31.12.2012
31.12.2011
Liabilities
31.12.2011
31.12.2012
31.12.2011
Investments
Provisions for employees
Other deductible
temporary differences
2,577,745
469,194
560,879
596,041
2,637,645
0
469,618
0
-59,900
469,194
91,261
596,041
19,882
0
0
0
19,882
0
Total
3,066,821
1,156,921
2,637,645
469,618
429,176
687,302
When calculating deferred tax receivables/ liabilities, ZM considered the maturity of items and
statutory defined declining tax rates.
In the reporting period, ZM recognized deferred tax receivables for financial investment impairments
available for sale, which it did not recognize in previous reporting periods. Situation regarding
ownership of the insurance company predicts the need for ZM investment portfolio rearrangement due
to raised capital requirements and higher risks from high investment concentration in Sava RE Group.
Recognized deferred tax receivables in the balance sheet from investment impairments in the amount
of 2,577,745 EUR have positive effect on the net profit and loss account of ZM.
ZM does not restore receivables for deferred taxes on account of taxable unacknowledged values with
receivable impairments, as it cannot assure that those values will be annulled in a way that is
acknowledged by the tax legislation.
The effects of deferred taxes on profit and loss account are described in explanation 32.
18. Business liabilities
31.12.2012
in EUR
NL
Liabilities from direct
insurance operations
- on policyholders
- On insurance brokers
Liabilities from co-insurance and
reinsurance
- for co-insurance premiums
- for charged shares
of reinsurers
Current tax liabilities
LI
31.12.2011
TOTAL
NL
LI
TOTAL
3,190,750
8,381,294
11,572,044
3,429,725
8,428,542
11,858,267
1,758,585
1,432,165
8,381,294
0
10,139,879
1,432,165
1,738,248
1,691,477
8,428,542
0
10,166,790
1,691,477
6,695,311
293,594
6,988,905
10,315,961
128,978
10,444,939
303,331
306,125
0
306,125
128,978
10,138,814
303,331
0
6,391,981
293,594
6,685,574
10,009,836
260,695
345,869
606,563
914,331
104,944
1,019,275
10,146,756
9,020,757
19,167,513
14,660,016
8,662,464
23,322,480
Liabilities of life insurance receivables include liabilities from received, but not yet settled classic life
insurance policies in the amount of 1,562,940 EUR (2011: 1,559,879 EUR) and liabilities from yet
unpaid distributed profit in the amount of 6,258,378 EUR (2011: 6,275,102 EUR). The accounted
amount from remaining operations liabilities is due in the 2013 financial year.
19. Other liabilities
in EUR
31.12.2012
NL
Other liabilities from insurance operations
Short-term liabilities towards employees
Liabilities towards suppliers
Other liabilities and taxes
Passive accruals
Other Liabilities Total
LI
31.12.2011
TOTAL
NL
LI
TOTAL
18
2,068,071
1,921,345
29
1,921,373
1,622,554
1,309,389
0
2,611,066
4,391,763
0
0
0
81,163
3,674,701
1,622,554
1,309,389
0
2,692,229
8,066,464
1,549,232
1,395,110
3,011,466
2,652,237
1,631,437
0
0
0
146,736
3,739,997
1,549,232
1,395,110
3,011,466
2,798,974
5,371,434
12,002,824
3,755,883
15,758,707
12,160,828
3,886,762
16,047,590
152
Within passive accruals ZM recognizes also costs for unused employees leave that ZM recognized for
the first time this year. The amount of predefined included costs amounts to 1,253,759 EUR.
Trends in passive accruals in year 2012
in EUR
Short-term deferred premium income
Predefined included costs and charges
1.1.2012
Formation
31.12.2012
5,318,934
-40,949,770
42,351,491
6,720,656
52,500
-533,757
1,787,516
1,306,259
0
0
39,549
39,549
5,371,434
-41,483,527
44,178,556
8,066,464
Other accruals
Total
Withdrawals
Trends in passive accruals in year 2011
in EUR
Short-term deferred premium income
Predefined included costs and charges
Total
1.1.2011
Withdrawals
Formation
31.12.2011
5,433,117
-46,153,761
46,039,579
5,318,934
374,589
-918,608
596,519
52,500
5,807,705
-47,072,369
46,636,098
5,371,434
20. Insurance Premium Revenue
Written insurance premium by insurance classes for year 2012
in EUR
1.1. To 31.12.2012
1.1. to 31.12.2011
Property insurance
Share of co-insurance and reinsurance in charged
gross premium
Net written insurance premium
Change in gross unearned premium reserve
Change in unearned premium reserve for co-insurance
and reinsurance operations
186,917,917
187,839,066
-45,125,015
-51,657,304
141,792,901
2,474,756
136,181,762
-84,515
-1,621,969
-1,035,224
142,645,689
135,062,022
76,992,250
75,404,821
-366,265
-248,509
76,625,985
38,905
75,156,313
74,860
24,789
8,892
76,689,679
75,240,065
Share of co-insurance and reinsurance in gross
premium
263,910,167
263,243,887
-45,491,280
-51,905,813
218,418,886
2,513,661
211,338,074
-9,655
-1,597,179
-1,026,332
219,335,368
210,302,087
Life insurance
Share of co-insurance and reinsurance in gross
premium
Total
153
1.1. To 31.12.2012
Premium
given in coinsurance and
reinsurance
0
-3,465,819
1,967
-10,297,534
0
-86,307
0
-55,967
0
-640,737
181,796
-8,123,504
66,412
-5,967,076
in EUR
Insurance class
Accident insurance
Aviation insurance
Ships insurance
Goods in transit insurance
insurance
Credit insurance
Pecuniary insurance
Legal expense insurance
Assistance
Charged gross
premium
Accepted coinsurance and
reinsurance
premium
19,579,258
50,216,634
124,886
288,424
1,852,241
20,111,380
18,309,811
Net
premium
total
16,113,440
39,921,067
38,579
232,457
1,211,504
12,169,672
12,409,147
57,975,232
0
-10,563,806
47,411,425
284,373
223,505
10,214,307
1,990,397
188,510
1,139,853
592,707
3,826,398
0
0
111,717
0
0
8,806
5,226
0
-220,020
-43,121
-2,402,364
-348,320
-93,827
-417,307
-433,147
-2,342,083
64,353
180,384
7,923,661
1,642,077
94,683
731,353
164,786
1,484,315
Property insurance total
186,917,918
375,923
-45,500,938
141,792,901
Life insurance
30,552,500
46,439,749
0
0
-87,867
-278,398
30,464,633
46,161,351
Life insurance total
Written insurance premium
76,992,249
0
-366,265
76,625,985
263,910,167
375,923
-45,867,203
218,418,886
1.1. to 31.12.2011
in EUR
18,910,638
52,563,553
167,451
302,624
1,788,280
11,900,671
27,857,161
0
0
0
0
0
119,723
101,287
Premium
given in coinsurance and
reinsurance
-3,825,114
-12,634,087
-147,945
-66,151
-661,405
-7,468,094
-8,777,371
59,858,525
0
-12,350,763
47,507,762
240,969
220,998
7,371,138
1,909,483
68,395
1,108,427
497,689
3,073,064
0
0
80,916
0
0
9,755
6,217
0
-351,000
-47,479
-2,013,438
-381,897
-13,679
-495,845
-961,373
-1,779,561
-110,031
173,519
5,438,616
1,527,586
54,716
622,337
-457,467
1,293,503
187,839,066
317,898
-51,975,202
136,181,762
Life insurance
31,881,501
43,523,320
0
0
-77,437
-171,071
31,804,064
43,352,249
Insurance class
Accident insurance
Aviation insurance
Ships insurance
insurance
Credit insurance
Pecuniary insurance
Assistance
Written insurance premium
Charged gross
premium
Accepted coinsurance and
reinsurance
premium
Net
premium
total
15,085,524
39,929,466
19,506
236,473
1,126,875
4,552,300
19,181,077
75,404,821
0
-248,508
75,156,313
263,243,887
317,898
-52,223,710
211,338,075
154
21. Income from Investments into Affiliated Companies
In the reporting period, ZM did not realize profits from investments into ZM group companies. In 2011,
the recognized revenue in the amount of 126 EUR entirely arose from interests of loans, leased to an
affiliated company at the market interest rate.
22. Net Financial Account of Investment
Net financial account of investment in year 2012
1.1. To 31.12.2012
in EUR
Income from interest and dividends
Impairment elimination
Net realized profit/loss
Net revaluation according to FV through P/L
account
Net investment property
Other investment revenue
Net revenue total
Loans and
deposits
Available for
sale
By the fair
value
through profit
and loss
account
Total
3,657,950
1,972
6,661,717
0
0
11,964,882
0
74,219
0
22,358,768
1,972
0
0
0
0
7,530,665
7,530,665
0
0
3,659,922
0
76,992
6,738,709
0
11,964,882
0
0
7,604,884
0
76,992
29,968,397
Net revaluation according to FV through P/L
account
Impairment
Other investment charges
Net charges total
Net Financial Account from Investments
In
possession
until maturity
0
0
250
0
0
250
0
0
0
0
0
1,901,173
2,772,163
3,792
0
4,677,128
62,372
0
0
0
62,372
1,963,545
2,772,413
3,792
0
4,739,750
3,659,672
6,738,709
7,287,754
7,542,512
25,228,647
Net financial account of investment in year 2011
1.1. to 31.12.2011
in EUR
Loans and
deposits
Income from interest and dividends
Impairment elimination
Net revenue total
Net revaluation according to FV through
P/L account
Impairment
Net charges total
Net Financial Account from
Investments
3,521,715
2,742
256
0
3,524,713
In
possessi
on until
maturity
Available
for sale
1,729,836
0
0
19,248
1,749,084
14,688,546
0
4,228,161
0
18,916,707
By the fair
value
through
profit and
loss account
88,574
0
-11,016
0
77,558
Total
20,028,671
2,742
4,217,401
19,248
24,268,062
0
0
0
2,619,985
2,619,985
250
0
0
250
0
0
0
0
2,843,138
9,318
0
2,852,456
0
0
0
2,619,985
2,843,388
9,318
0
5,472,691
3,524,463
1,749,084
16,064,251
-2,542,427
18,795,371
155
Income from financial investments in year 2012
1.1. To 31.12.2012
By the fair
Available for
value through
sale
profit and loss
account
Loans
and
deposits
In
possessio
n until
maturity
Income from property insurance investments
Investment interests
Gains on the disposal of investments
Dividends and shares in investment profit
Elimination of investment impairment
Income from property investments
Unrealized asset incomes according to FV trough PL
Total
2,330,886
0
0
1,972
0
0
0
2,332,858
2,582,156
0
0
0
0
0
10,721
2,592,877
4,773,546
525,716
120,297
0
90,690
0
0
5,510,249
16,185
1,755
0
0
0
411,325
0
429,265
9,702,773
527,471
120,297
1,972
90,690
411,325
10,721
10,865,249
Income from life insurance investments
Total
1,327,064
0
0
0
0
1,327,064
4,079,561
0
0
0
66,271
4,145,832
6,890,374
521,619
180,665
0
0
7,592,658
58,034
17,741
0
12,625,523
0
12,701,298
12,355,033
539,360
180,665
12,625,523
66,271
25,766,852
Investment income
3,657,950
0
0
1,972
0
0
0
6,661,717
0
0
0
0
0
76,992
11,663,920
1,047,335
300,962
0
90,690
0
0
74,219
19,496
0
0
0
13,036,848
0
22,057,806
1,066,831
300,962
1,972
90,690
13,036,848
76,992
Investment income total
3,659,922
6,738,709
13,102,907
13,130,563
36,632,101
in EUR
Total
Income from financial investments in year 2011
in EUR
Loans
and
deposits
In
possessio
n until
maturity
1.1. to 31.12.2011
By the fair
value
Available for
through
sale
profit and
loss account
Total
Income from property insurance investments
Total
2,349,595
256
0
2,742
0
0
0
2,352,593
704,221
0
0
0
0
0
2,680
706,901
5,176,947
2,641,423
136,013
0
94,956
0
0
8,049,339
18,323
8,383
0
0
0
323,400
0
350,106
8,249,086
2,650,062
136,013
2,742
94,956
323,400
2,680
11,458,940
Income from life insurance investments
Total
1,172,120
0
0
0
0
1,172,120
1,025,615
0
0
0
16,568
1,042,183
9,221,015
1,634,458
154,570
0
0
11,010,043
70,251
0
0
11,980,567
0
12,050,818
11,489,001
1,634,458
154,570
11,980,567
16,568
25,275,164
156
1.1. to 31.12.2011
By the fair
value
Available for
through
sale
profit and
loss account
Loans
and
deposits
In
possessio
n until
maturity
Financial investment income
3,521,715
256
0
2,742
0
0
0
1,729,836
0
0
0
0
0
19,248
14,397,962
4,275,881
290,583
0
94,956
0
0
88,574
8,383
0
0
0
12,303,967
0
19,738,087
4,284,520
290,583
2,742
94,956
12,303,967
19,248
Financial investment income
3,524,713
1,749,084
19,059,382
12,400,924
36,734,104
in EUR
Total
Charges from financial investments in year 2012
1.1. To 31.12.2012
in EUR
Loans
and
deposits
In
possession
until maturity
Available
for sale
By the fair
value through
profit and loss
account
Total
Charges from property insurance investments
Impairment of investment value
250
0
1,430,785
0
1,431,035
Losses of financial assets according to FV trough
PL
0
0
0
130,027
130,027
Losses on the disposal of investments
0
0
834,241
0
834,241
Charges from real estates
0
0
93,140
0
93,140
250
0
2,358,166
130,027
2,488,443
0
0
1,341,378
0
1,341,378
PL
0
0
0
5,376,156
5,376,156
0
0
2,114,267
81,868
2,196,135
0
0
1,342
0
1,342
Total
0
0
3,456,987
5,458,024
8,915,011
250
0
2,772,163
0
2,772,413
0
0
0
5,506,183
5,506,183
Total
Charges from life insurance investments
Investment charges
PL
0
0
2,948,508
81,868
3,030,376
0
0
94,482
0
94,482
0
0
0
0
0
250
0
5,815,153
5,588,051
11,403,454
Investment charges total
157
Charges from financial investments in year 2011
1.1. to 31.12.2011
in EUR
Loans
and
deposits
In
possessi
on until
maturity
By the fair
value through
profit and loss
account
Available
for sale
Total
Charges from property insurance investments
250
0
485,995
0
486,245
Losses of financial assets according to FV trough PL
0
0
0
373,063
373,063
0
0
39,469
0
39,469
0
0
102,932
0
102,932
250
0
628,396
373,063
1,001,709
0
0
2,357,143
0
2,357,143
0
0
0
14,550,889
14,550,889
0
0
8,252
19,399
27,651
0
0
1,341
0
1,341
Total
0
0
2,366,736
14,570,288
16,937,024
Total
Charges from life insurance investments
Investment charges of ZM
250
0
2,843,138
0
2,843,388
0
0
0
14,923,952
14,923,952
0
0
47,721
19,399
67,120
0
0
104,273
0
104,273
250
0
2,995,132
14,943,351
17,938,734
Investment charges total
23. Other Insurance Income
in EUR
Income from provisions
1.1. To 31.12.2012
1.1. to 31.12.2011
10,161,177
10,614,954
9,434,703
10,007,568
726,474
607,387
414,494
518,447
10,575,671
11,133,402
Out of which:
- Reinsurance commission
- Managing and output commissions
Other insurance income and other services
Other revenue total
24. Other Revenue
in EUR
Financial revenue from business relations
1.1. To 31.12.2012
1.1. to 31.12.2011
2,147,606
2,077,192
1,251,769
1,240,055
829,920
724,093
Out of which:
- Charged interest from recourse claims
- Interests accepted from insurance premiums
Financial revenue from revaluation
18,619
87,241
Other revenue from business relations
1,270,392
844,215
Total
3,436,617
3,008,648
Financial revenue from business relations is formed by interests from premiums, recourse recovery
and other receivables, and revenue from paid receivables from previous years that the company
written-off due to compliance with the unenforceability criteria.
158
25. Net Claims Charges
Elements of accounted net charges for claims
in EUR
Property insurance
Share of reinsurance and co-insurance in
gross claims
Charged recourses in claims
Net claim amount
Change in gross claims reserve
Change in claims reserve for co-insurance and
reinsurance operations
Net Claims Charges
Life insurance
gross premium
Net claim amount
Net Claims Charges
Total
gross premium
Net claim amount
Net Claims Charges
1.1. To 31.12.2012
1.1. to 31.12.2011
109,911,821
102,530,061
-24,660,610
-27,009,262
-3,647,475
81,603,737
26,453,348
-5,386,467
70,134,332
17,017,594
-7,407,291
1,625,301
100,649,794
88,777,227
38,267,524
37,491,597
-122,653
-59,318
0
38,144,871
2,438,899
0
37,432,279
3,722,141
-69,480
-28,382
40,514,291
41,126,039
148,179,346
140,021,658
-24,783,263
-27,068,580
-3,647,475
119,748,608
28,892,248
-5,386,467
107,566,611
20,739,735
-7,476,771
141,164,085
1,596,919
129,903,266
Under claims charges, ZM recognizes also the amount of contribution that it pays to the Health
Insurance Institute of Slovenia in accordance with the Compulsory Motor Third-Party Liability
Insurance Act. Recognized amount amounts to 4,289,891 EUR (2011: 3,846,128 EUR). Up to May
2012, the contribution was paid in the amount of 6.5 percent from invoiced premium and after that in
the amount of 8.5 percent from invoiced premium.
159
Net charges for claims by insurance classes for year 2012
in EUR
Gross
claims
Accident insurance
Aviation insurance
Ships insurance
Land motor vehicle owners thirdparty liability insurance
Credit insurance
Pecuniary insurance
Assistance
7,052,095
37,135,847
71,887
351,477
752,112
10,139,192
13,801,273
1.1. To 31.12.2012
Amount
given in
reinsurance
0
-1,497,734
-157,105
-6,923,226
0
-15,941
0
-69,360
-255,443
-73,264
-26,146
-3,652,418
-6,869
-3,125,925
Amount from
co-insurance
operations
Amount of
recourse
claims
Net
claims
0
-648,900
0
-473
-85,241
-19,061
-32,760
5,554,361
29,406,617
55,946
281,644
338,164
6,441,566
10,635,720
32,313,805
-95,943
-6,340,642
-1,272,013
24,605,208
0
16,638
4,911,233
1,505,137
166,224
662,457
0
1,032,444
0
0
-4,618
0
0
0
840
0
0
-3,359
-1,179,216
-13,999
-35,375
-152,423
0
-1,032,444
0
0
-5,544
-1,565,406
-18,078
0
0
0
0
13,279
3,721,855
-74,268
112,771
510,034
840
0
109,911,821
-545,284
-24,115,326
-3,647,475
81,603,737
Life insurance
25,989,111
12,278,414
0
0
-2,108
-120,545
0
0
25,987,003
12,157,869
Total
38,267,524
0
-122,653
0
38,144,871
148,179,346
-545,284
-24,237,979
-3,647,475
119,748,608
Net charges for claims by insurance classes for year 2011
1.1. to 31.12.2011
in EUR
Accident insurance
Aviation insurance
Ships insurance
Land motor vehicle owners third-party
liability insurance
Credit insurance
Pecuniary insurance
Assistance
Gross
claims
Amount from
co-insurance
operations
Amount given
in reinsurance
Amount of
recourse
claims
Net
claims
6,741,318
35,781,633
56,343
163,526
680,531
7,606,876
14,509,852
0
-172,877
0
0
-225,828
-7,084
-12,288
-1,592,362
-7,717,543
-11,269
-36,243
-85,393
-4,569,400
-3,883,475
0
-839,057
0
0
-31,741
-1,065,939
-3,678
5,148,956
27,052,156
45,074
127,283
337,569
1,964,453
10,610,411
28,932,653
-25,323
-6,504,953
-1,375,153
21,027,224
25,382
4,606,553
1,903,881
50,637
672,891
0
797,985
0
-32,383
0
0
0
724
0
-5,711
-1,150,892
-31,480
-1,967
-145,530
0
-797,985
0
-11,548
-2,024,700
-34,650
0
0
0
19,671
3,411,730
-152,299
14,020
527,361
724
0
102,530,061
-475,059
-26,534,203
-5,386,467
70,134,332
Life insurance
27,001,166
10,490,431
0
0
0
-59,318
0
0
27,001,166
10,431,113
37,491,597
0
-59,318
0
37,432,279
140,021,658
-475,059
-26,593,521
-5,386,467
107,566,611
Total
160
26. Modification of Other Technical Reservations
1.1. To 31.12.2012
in EUR
1.1. to 31.12.2011
Modification of mathematical reserves for life insurances
4,258,661
5,430,034
Modification of provisions for non-lapse risks
3,094,379
81,295
Total
7,353,040
5,511,330
Modification of mathematical reserves for life insurances is the result of mathematical reserve transfer
into proceeds (endowment, surrender), increase of mathematical reserve for active life insurance
agreements and increase of profit, belonging to the insured persons. In accordance with the achieved
results from classic life insurance, calculated based on the attribution of profits methodology, ZM did
not recognize liabilities from the attribution of profits for both reporting period.
27. Modification of Technical Provisions of the Insured Persons Assuming Investment Risk
in EUR
Modification of technical provisions
Additional reservations - guaranteed
value*
Total
1.1. To 31.12.2012
1.1. to 31.12.2011
21,477,829
11,403,754
59
148
21,477,889
11,403,902
*ZM forms them for insurance agreements that ZM guarantees for in accordance with insurance terms and
conditions.
28. Bonus and Rebate Charges
in EUR
Modification of gross bonus and rebate provisions
Reinsurance part of modification
Total
1.1. To 31.12.2012
1.1. to 31.12.2011
91,391
32,953
-15,464
-21,602
75,927
11,351
The recognized charges are entirely related to the modification of bonus provisions that the company
forms with the purpose to return a part of the gross premium that belongs to the insured person in
case of a positive claims result according to the agreed rights of the insured person in the insurance
agreement.
29. Operating Costs
The costs of acquiring insurances represent the charged commission to external contractor agents
and brokers for the underwritten insurances. There is an amount of 1,291,417 EUR (2011: 2,965,618
EUR) of costs recognized among insurance acquisition costs under the life insurance reporting
segment, arising from modification in deferred expenses from insurance acquisition.
Other costs include material, advertising, marketing and representation costs, donations and
sponsorships, and other operating costs.
Among the operating costs ZM also accounts the sum of auditing services in the amount of 31,200
EUR (2011: 69,551 EUR). Total auditing costs, recognized in the reporting period, relate to auditing
services of the ZM annual report. The total contractual amount of annual report audit for 2012 is
45,000 euros (VAT excluded). ZM recognized service expenses in the amount of 387,340 EUR (2011:
396,872 EUR) among other operating costs. Consulting services arising from consulting contracts are
mostly related to the area of business process improvement and consultations in the area of adjusting
and assuring data within new insurance legislation – Solvency II.
ZM leases premises for performing insurance services. Most of the lease agreements are
underwritten for indefinite period of time. All lease agreements may be revoked at any moment.
Charges arising from lease agreements are disclosed directly in the Profit and Loss Account in a
straight line throughout the whole period of the lease. Total lease costs, recognized in the profit and
161
loss account for the reporting period amount to 717,955 (2011: 1,076,601 EUR). Among lease costs
there is the amount of 215,524 EUR (2011: 224,420 EUR) of operating costs for managers of leased
premises.
in EUR
1.1. To 31.12.2012
1.1. to 31.12.2011
Property insurance
Acquisition costs
Depreciation of assets needed for operation
13,615,487
12,776,425
2,343,374
2,187,533
Labor costs
24,848,014
22,780,388
- Wages and salaries
17,367,691
16,799,595
- Pension insurance costs
1,505,173
1,505,173
- Social security costs
1,233,052
1,233,052
- Other labor costs
4,022,756
2,656,936
- Provisions for employees
Other operating costs
Operating costs by natural classes total
719,341
585,632
8,880,541
12,070,155
49,687,415
49,814,501
8,562,987
12,449,681
Life insurance
Acquisition costs
98,006
100,768
Labor costs
7,385,515
8,169,470
5,246,157
5,575,733
470,061
499,562
- Other labor costs
- Provisions for severance benefits and long-service awards
385,078
409,246
1,165,625
1,594,359
118,594
90,569
6,523,071
3,151,155
22,569,580
23,871,074
22,178,474
25,226,106
2,441,380
2,288,301
Labor costs
32,233,529
30,949,857
22,613,848
22,375,328
1,975,235
2,004,736
1,618,130
1,642,298
- Other labor costs
5,188,381
4,251,295
837,935
676,201
15,403,612
15,221,310
72,256,994
73,685,575
Average number of employees in year
877
879
Employees as on 31. Dec
881
875
Total
Acquisition costs
- Provisions for severance benefits and long-service awards
30. Other Technical Charges
in EUR
Fire tax
1.1. To 31.12.2012
1.1. to 31.12.2011
1,503,006
1,234,167
Contribution for loss coverage by non-insured and unknown
vehicles
424,542
530,179
Other Technical Charges
557,296
518,374
2,484,843
2,282,720
Other Technical Charges
162
31. Other Charges
in EUR
Financial charges from business relations
1.1. To 31.12.2012
1.1. to 31.12.2011
1,374,026
1,196,242
533,757
532,301
44,262
135,164
4,762,613
4,565,056
112,354
41,020
6,248,993
5,802,318
Out of which:
- Interests from subordinated liabilities
- Interests from loans
Financial charges for revaluation
Other charges from business relations
Other Charges
32. Revenue Tax
in EUR
31.12.2012
Current revenue tax
2,248,416
Charges from deferred tax from investments
Revenue from deferred tax from employees provisions
Revenue tax recognized in profit/loss account statement
Revenue tax recognized in comprehensive income
31.12.2011
4,109,321
158,224
43,301
-2,609,122
-70,526
-202,482
4,082,096
-1,689,740
1,241,859
Tax liability was calculated using the 18 percent tax rate. According to the previous reporting period it
is lower for 2 percent points. The tax rate will change in the following periods. Until 2015, it will
gradually increase for 1 percent point a year. In 2015, the tax rate will amount to 15 percent.
Monthly installment of revenue tax prepayment in 2013 amounts to 176,959 EUR (2012: 342,443
EUR).
Adjustment of revenue tax by revenue regulations
in EUR
Accounting profit
2012
2011
7,514,532
14,639,171
18.00%
20.00%
Tax charged by statutory rate
1,352,616
2,927,834
Adjustment of accounting profit by revenue regulations
4,976,669
5,907,434
-309,146
-322,952
Statutory tax rate - %
Adjustment of revenue on tax recognized revenue
Revenue that increases tax base
Adjustment of charges on tax recognized charges (reduction)
Adjustment of charges on tax recognized charges (increase)
Modification of tax base because of transition to a new accounting method, at
changes in accounting policy, adjustment of errors and revaluations
Increase of tax base – excluding charges concerning dividends
0
0
7,585,932
7,480,858
-66,997
0
-271,211
-201,976
15,048
16,203
Tax reliefs
-1,976,957
-1,064,699
Basis for corporate revenue tax
12,491,201
20,546,605
2,248,416
4,109,321
-2,450,898
-27,225
29.92
28.07
Corporate revenue tax
Deferred Taxes
Effective tax rate*
* Calculated as a quotient of revenue tax and accounting profit/loss
163
27
33. Review of Distributable Profit or Loss
ZM used provisions for credit risks (equalization provisions) in favor of net profit and loss account of
the reporting period. In accordance with insurance legislation provisions net profit and loss account,
ZM formed latter reserves, chargeable to net profit and loss account of the reporting period.
31.12.2012
in EUR
31.12.2011
a) Net profit and loss account of the financial year
7,717,014
10,557,075
b) Transferred net profit (+) / transferred net loss (-)
2,724,415
287,125
c) Reversal of profit reserves
9,705,825
0
357,270
0
9,348,555
0
- reversal of credit risk reserves (equalization provisions)
- Reversal of other profit reserves
Č) Increase of profit reserves by the decision of the Management
Board
- Increase of safety reserves
0
3,175,302
0
2,560,039
- Increase of credit risks reserves
0
615,263
d) Increase of other reserves by the decision of the Management
Board and Supervisory Board
0
0
20,147,254
7,668,897
e) Distributable profit (a+b+c-č-d) allocated by the Assembly
The Assembly can allocate the distributable profit in the amount of 20,147,245 EUR among
shareholders, to other reserves, transfer it to the next year or use it for other purposes. From
7,668,897 EUR of the distributable profit of previous reporting period 3,985,226 EUR was intended for
payment of dividends, the remaining part of the distributable profit stayed unallocated.
The amount for proceeding dividends to shareholders is defined in gross amount.
34. Net Earnings Per Share
31.12.2012
In euros
Net profit per share
7,717,014
12,453,831
31.12.2011
0.62
10,557,075
0.93
11,334,385
All shares issued by ZM are ordinary registered shares, thus the indicator of amended profit per share
is the same as basic profit per share.
35. Potential Receivables and Liabilities
Potential receivables of ZM represent recourse recoveries that do not meet all the conditions for
recognition as receivables among ZM assets.
in EUR
Unclaimed recourse claims
31.12.2012
18,814,402
31.12.2011
18,458,632
Potential liabilities
in EUR
31.12.2012
31.12.2011
Civil claims
184,609
Given guaranties for call for tenders
742,859
926,737
Potential liabilities
927,468
1,424,277
27
497,539
The use of profit is in the domain of the Assembly.
164
36. Business with Related Parties
ZM does business with related parties based on contracts that determine market prices of services.
Below we present the operations between ZM and its two largest owners. We also present the
operations and earnings of key management.
Equity of Related Parties
The largest shareholders of ZM are Nova KBM d.d with 50.9963 percent and Sava Re d.d. with
48.6783 percent of capital share. At the end of the year 2012 the Management Board members
owned 14,147 shares, which represents only 0.1136 percent of the share capital. Among the equity
owners there is also an employee, employed based on an individual employment agreement, that
owns 674 shares (0.0054 percent of equity). Members of the Supervisory Board do not have their
own share in the shareholding structure.
Transactions with Key Management
Key management of ZM is represented by the members of the Supervisory Board, members of the
audit committee, members of the Management Board and employees with individual employment
agreements.
In 2012 there were 6 active members of the Supervisory Board. Income of the Supervisory Board
members is presented by the payments (awards) for performing their function within the Supervisory
Board and meeting fees of the body and reimbursement of eventual traveling expenses regarding their
meeting attendance, Both employee representatives of the Supervisory Board receive also salary and
other contributions based on the employment agreement with ZM.
Remuneration of members of the Supervisory Board in year 2012
Meeting fees*
in EUR
Supervisory Board
Hauc Aleš (since 6.7.2012)
Matjaž Kovačič (until 6.7.2012)
Bonuses**
11,674
81,576
1,188
9,050
660
9,550
Dr. Janez Komelj
1,848
12,360
Dušan Čeč
2,426
13,536
Edi Kosi
2,076
12,360
M.Sc. Miha Šlamberger (since 6.7.2012)
1,408
6,014
Manja Skernišak (until 6.7.2012)
Robert Ciglarič
0
6,346
2,068
12,360
*the amount includes also travel reimbursement
**payments for performance of the function
Remuneration of members of the Supervisory Board in year 2011
Meeting fees*
in EUR
Supervisory Board
Bonuses**
10,544
20,394
Kovačič Matjaž
2,184
4,650
Dušan Čeč
1,771
3,384
Edi Kosi
1,595
3,090
Janez Komelj
1,496
3,090
Manja Skernišak
1,727
3,090
Robert Ciglarič
1,771
3,090
During the reporting period there were 6 members of the audit committee, which is a permanent
committee of the Supervisory board. Below we present income of the members.
165
The remuneration of audit committee members in 2012
Meeting fees*
in EUR
Bonuses**
Dušan Čeč
1,649
4,632
Andreja Rahne
1,408
7,200
M.Sc. Ignac Dolenšek
1,619
7,200
Manja Skernišak (until 17.7.2012)
Nataša Ziherl (until 17.7.2012)
Robert Ciglarič
0
1,648
704
3,832
1,232
3,096
M.Sc. Miha Šlamberger (since 17.7.2012)
704
1,448
Tatjana Skaza (to 17.7.2012)
528
3,368
The remuneration of audit committee members in 2011
Meeting fees*
in EUR
Dušan Čeč
Bonuses**
3,292
Andreja Rahne (since 16 August 2011)
M.Sc. Ignac Dolenšek
1,158
424
1,800
2,389
1,800
M. Milojka Kolar Celarc (until 5 October 2011)
495
0
Manja Skernišak
990
774
687
1,800
1,166
774
Nataša Ziherl
Robert Ciglarič
In 2012 there were 5 active members of the ZM Management Board. The income of Management
Board members and employees with individual employment agreements are accounted among labor
costs.
Remuneration of Management and representatives of employees in the Supervisory Board and Audit
Committee in year 2012
in EUR
Gross
salary
Advantage
s
Other
gross
income**
Bonuses
Travel and
food
reimburse
ment
Premium
for
voluntary
pension
insurance
Management Board
672,477
47,928
91,200
52,210
0
3,320
Drago Cotar
141,341
11,466
33,300
10,700
1,261
664
M.Sc. Borut Celcer
137,387
9,172
20,700
10,500
1,346
664
M.Sc. David Kastelic
136,757
5,477
17,900
12,210
1,371
664
Marko Planinšec
136,966
13,606
19,300
10,500
1,334
664
Srečko Čarni
Employed on the basis of
individual contracts*
Representatives of employees
in supervisory bodies***
120,026
8,207
0
8,300
1,218
664
2,545,379
145,689
0
153,640
43,860
21,787
46,367
93
0
4,092
2,030
664
3,264,223
193,710
209,942
45,890
25,771
Total
*employees for which the tariff part of collective agreement is not valid
**recourse for vacation, severance pay at retirement, long-service awards and
possible other incomes
***Supervisory Board and Audit Committee
Remuneration of Management and representatives of employees in the Supervisory Board and Audit
Committee in year 2011
166
in EUR
Gross
salary
Advantage
s
Other
gross
income**
Travel and
food
reimburse
ment
Premium
for
voluntary
pension
insurance
Management Board
737,564
39,544
51,861
6,566
3,225
Drago Cotar
162,732
13,676
10,700
1,206
645
M.Sc. Borut Celcer
148,727
10,826
10,190
1,316
645
M.Sc. David Kastelic
148,785
6,696
10,500
1,450
645
Marko Planinšec
149,625
5,372
12,171
1,297
645
Srečko Čarni
127,696
2,975
8,300
1,297
645
2,536,107
144,008
91,719
46,446
21,093
71,210
186
33,899
3,457
1,290
3,344,882
183,738
177,480
56,469
25,608
Employed on the basis of individual contracts*
Representatives of employees in supervisory
bodies****
Total
*employees for which the tariff part of collective agreement is not valid
**recourse for vacation, severance pay at retirement, long-service awards and possible other incomes
***Supervisory Board and Audit Committee
Liabilities of ZM to key management refer only to accounted salaries for December 2012 that were
paid in January 2013.
Among the loans, ZM accounts also loan receivables for loans received by the employees with
individual employment agreements. Loans to those people were intended to solve housing issues. A
loan is made with a loan agreement with 4.5 percent interest rate. In 2012, 9,755 EUR (2011: 9,335
EUR) of loan principal were paid off. The liabilities from a credit agreement are paid regularly. On 31
December 2011 they amounted to: 27,845 EUR (31.12.2011: 37,599 EUR).
Other related private parties are according to IAS 24 and Companies Act-1 members of key
management close family (spouse or partner, children and other surviving dependents). In the
reporting period none of the latter persons had any share capital in ZM and no business that would
have been closed based under unusual market conditions.
Other related private parties employed at ZM received during the reporting period income for
performing their tasks according to employment agreements, made based on the collective wage
agreement.
Key management persons and other related physical parties to the members of key management
have underwritten insurance agreements for a group of property and life insurances. Insurance
agreements are underwritten based on regular selling options (agents, underwriting locations) and do
not stand out in any way from agreements with other insured.
ZM doesn’t have any loan agreements signed with other related private parties and it also hasn’t paid
out any advances or given any guaranties.
Transactions with Nova KBM d.d.
Nova KBM d.d. is an important partner with asset investment of long-term business funds and
business funds in various forms, including the investment into bank shares from public sales and into
issued bank bonds. ZM has four current accounts open at the bank. It is also a lessee of the premises
in the joint information technology center for which it pays the rent and it also takes a lease on bank’s
POS terminals.
The bank performs operations of insurance agency for some of the insurance products for which ZM
pays commission. The bank assets and some of the credit businesses are insured with ZM.
ZM and Nova KBM d.d. do not have any mutual credit relations.
Classes and scale of transactions with Nova KBM d.d.
167
in EUR
Income from gross premium of insurances
2012
2011
850,204
848,372
2,142,123
2,141,233
Costs of payment transactions and commissions
-806,766
-732,017
Rents and operating costs
-414,068
-427,871
Investment income
Commission for insurance representation
-73,994
-86,996
Charges for compensations
-501,098
-379,341
Investment charges (impairment of equity shares)
-337,264
-860,605
859,137
502,775
11,783,561
12,391,138
215,983
525,002
26,765,331
22,247,782
100,612
70,134
Effect in profit/loss account
Debt securities from organized market with fixed income
Equity securities in ZM portfolio
Bank deposits
Cash in sight monetary account
Receivables from insurance operations
29,661
Liabilities from commissions and rents
Total in balance sheet
0
21,670
38,895,148
35,255,726
Transactions with Pozavarovalnica Sava d.d.
Business relations with Pozavarovalnica Sava are related mostly to reinsurance transactions and are
reflected in charges, revenues, assets and liabilities. In ZM’s investment portfolio there are also shares
of the reinsurance company, and the employees of ZM have an accident insurance underwritten.
Classes and scale of transactions with Pozavarovalnica Sava d.d.
in EUR
2012
2011
Income for reinsurance share in charged claims
21,905,178
24,603,472
Income from reinsurance share in claims reserve
-7,132,144
-1,408,291
-15,464
43,357
Income from reinsurance share in other technical provisions
Income from gross premiums
Services income
Charges for reinsurance share in gross premium
Reduction of charges for reinsurance commission from gross premium
Charges for reinsurance share in unearned premium reserve
Investment charges (impairment of equity shares)
Charges for compensations
Claims from reinsurance returns
22,435
4,001
0
11,119
-40,546,139
-47,365,112
8,952,596
9,670,183
-1,827,279
-969,135
-145,676
-1,165,497
0
-11,119
-18,786,493
-16,587,022
7,834,116
9,976,053
66,147,302
60,642,707
Equity securities in ZM portfolio
2,965,003
2,419,476
Liabilities from reinsurance returns
6,091,371
9,759,645
Liability towards the reinsurance company from unearned premium reserve
9,982,760
12,878,833
60,872,289
50,399,759
Claims on reinsurance from technical provisions
168
Transactions with Moja naložba, d.d., Pension Company
ZM invested capital into the pension company, 15.2 percent of which is financed from the business
fund of ZM and only 4.8 percent from its own fund. A member of the ZM Management Board is a
member of the pension company’s Supervisory Board.
The company signed an agreement with the pension company to join the pension plan and thus
included all its employees into the voluntary supplemental pension insurance. In 2012, ZM paid
monthly payments of 55.19 EUR (2011: 53.74 EUR). Sum total of all payments in 2012 amounts to
520,824 EUR (2011: 514,062 EUR).
Transactions with Vivus d.o.o.
Vivus d.o.o. is an agency specialized in trading with life insurances of ZM. Basic data of the affiliated
company are given in the table below.
Headquarters
Tax number:
Activity
Share capital
Share of insurance company Zavarovalnica Maribor
d.d.
Average number of employees in year 2012
Karantanska ulica 35, 2000 Maribor
2154170000
99886669
Insurance agency
188.763
100 percent
42
ZM does business with affiliated company based on contracts that determine market prices of
services.
The manager of the company Vivus d.o.o. is a ZM employee. The affiliated company signed a lease
agreement with the company manager for renting the premises. Rent for the reporting period
amounted to 21,297 EUR (2011: 22,600 EUR).
Classes and scale of transactions with Vivus d.o.o.
in EUR
2012
Interest income
2011
0
126
Commission for insurance representation
863,952
-944,079
863,952
-943,953
Investment in Company’s portfolio
240,000
190,000
57,789
59,114
297,789
249,114
Liabilities from commission
Transactions with Ornatus d.o.o.
ZM does business with the company based on contracts that determine market prices of services.
The manager of the company Ornatus d.o.o. is a ZM employee.
Transactions with Ornatus KC d.o.o.
ZM does business with the company based on contracts that determine market prices of services. In
the reporting period, ZM charged on the basis of contracts and recognized 25,923 EUR of costs in the
profit and loss account statement of ZM.
The manager of the company Ornatus d.o.o. is a ZM employee.
169
37. Events Following the Balance Sheet Date
In the period between the financial statement date – 31 December 2012 – and the issue of
independent auditor`s report – 18 March 2013 – none of the events occurred that:
•
would affect the accounted financial statement items (adjustment events)
•
have no effect on the accounted financial statement items and ZM would have to disclose
them in case they would suggest significant circumstances that occurred after the balance
sheet date (non-adjustable events)
28
Events following the reporting date that are important for the company in 2013:
• On 10 January, ZM gets a permit to perform insurance operations in the health insurance
class
•
28. January (on the European data protection day), ZM received the recognition for good
practice in the private sector in the area of handling and collecting sensitive personal data.
•
On 11 February, Pozavarovalnica Sava d.d. receives the decision of the Insurance
Supervision Agency based on which it can directly acquire a share of voting rights or equity
share of Zavarovalnica Maribor d.d., which is the same or higher than 50 percent, within 6
months from the decision delivery, otherwise the permit shall expire. At the same time, the
Insurance Supervision Agency issued a permit to Pozavarovalnica Sava d.d. and Slovenska
odškodninska družba d.d., so that they can, based on shareholder`s agreement, concluded
with the Contract relating to shares of Zavarovalnica Maribor d.d., together acquire share of
voting rights or equity share of Zavarovalnica Maribor d.d., which is the same or higher than
50 percent, within 6 months from the decision delivery, otherwise the permit shall expire.
•
On 25 February, Pozavarovalnica Sava d.d. receives the decision of the Slovenian
Competition Protection Agency, with which the Agency determined that it does not oppose the
notified concentration of Pozavarovalnica Sava d.d. and Zavarovalnica Maribor d.d., and that
the concentration is in accordance with the competition rules.
•
28
th
In March 2013, the 40 General Meeting of ZM confirmed Mr. Dušan Čeč and Mr. Jošt
Dolničar as two new members of the Supervisory Board of Pozavarovalnica Sava d.d. due to
the expiry of the mandate of the Supervisory Board representatives.
All important events until 12 March 2013 are included
170
171
172
173
Enclosure to the Annual Report
Financial Statements According to Schemes of the Supervisory Organ
Balance Sheet of the Property Insurance Group
175
Balance Sheet of the Life Insurance Group
178
Balance Sheet of the ZM Group
181
Statement of the Comprehensive Income
183
Presentation of Assets and Liabilities of the 5063400020 Business Fund
187
5063400020 Business Fund Statement
188
Presentation of Assets and Liabilities of KSNT -1 5063400022
189
KSNT -1 5063400022 Business Fund Statement
190
Presentation of Assets and Liabilities of KSNT -2 5063400023
191
KSNT -2 5063400023 Business Fund Statement
192
Presentation of Assets and Liabilities of KSNT – 2A 5063400025
193
KSNT – 2A 5063400025 Business Fund Statement
194
Zavarovalnica Maribor d.d. Enclosure to the Annual Report
174
Balance Sheet of the Property Insurance
In euros
A. ASSETS
A. Intangible non-current assets,
1 Intangible non-current assets
Growth
index
on 31 Dec 2012
on 31 Dec 2011
394.551.735
368.811.755
107
1.582.110
1.562.852
1.501.701
101
1.517.378
101
2 Goodwill
3 Long-term deferred acquisition costs
4 Other long-term active accruals
B. Investments in land and buildings and financial investments
I.
64.733
61.152
106
309.300.768
305.272.427
101
8.993.984
9.907.223
91
8.554.675
9.409.855
91
1 Land for direct implementation of insurance activity
1.918.844
1.927.409
100
2 Buildings for direct implementation of insurance activity
6.635.831
7.482.446
89
439.309
497.368
88
Land and buildings
a) For direct implementation of insurance activity
3 Other land/buildings for direct implementation of insurance activity
b) Investments in real estates that are not intended for direct implementation of insurance activity
1 Land
2 Buildings
2.379
439.309
494.989
89
II. Financial investments in group companies and in associated companies
1 Shares and participation in group companies
2 Debt securities and loans, given to other group companies
3 Shares and participation in associated companies
4 Debt securities and loans, given to associated companies
5 Other fin. investments in group companies and in associated companies
III. Other financial investments
1 Long-term financial investments
1.1.
Shares and other variable-yield securities with and coupons in mutual funds
1.2. Debt securities and other fixed-income securities
1.3. Participation in investment funds
1.4. Mortgage credits
234.322.120
235.135.452
100
216.233.085
196.421.574
110
2.784.502
3.947.369
71
178.724.903
146.163.554
122
7.497.877
8.959.814
84
67.858
91.479
74
1.5. Other lendings
112.741
131.241
86
1.6. Bank deposits
26.403.282
36.409.850
73
1.7. Other financial investments
641.923
718.266
89
2 Short-term financial investments
18.089.035
38.713.879
47
988.915
15.486.440
6
83.522
80.830
103
17.016.598
23.146.608
74
65.984.665
60.229.752
110
11.109.657
12.731.551
87
11.109.657
12.731.551
87
2.1. Shares and participation bought for sale
2.2.
Securities bought for sale or with a residual maturity of up to one year
2.3. Given short-term loans
2.4. Short-term bank deposits
2.5. Other short-term financial investments
IV. Financial investments of reinsurance companies in respect of reinvest. contracts at ceding undertakings
V. Resources from financial contracts
VI. Amount of technical provisions transferred to reinsurance companies and in co-insurance (if insurance
company transacts with co-insurances, it separately shows the amount given in co-insurance as in
a) from unearned premium
1 Amount given in reinsurance
2 Amount given in co-insurance
b) from life assurance provisions
c) from claims outstanding
d) from provisions from bonuses and rebates
54.838.451
47.454.674
116
54.708.551
47.331.858
116
129.900
122.815
106
36.557
43.527
84
36.557
43.527
84
e) from other technical provisions
f)
from technical provisions for life-insurance policies in favor of the insured assuming the investment risk
C. Investments for life-insurance policies in favor of the insured assuming the investment risk
175
In euros
on 31 Dec 2012
on 31 Dec 2011
D. Receivables (receivables on associated companies and group companies are shown separately as sub-items
of the items I, II, III)52.989.773
50.505.424
I.
Receivables from direct insurance operations
1 Receivables towards the policyholders
2 Receivables towards the agents
3 Other claims from direct insurance operations
II. Receivables from co-insurance and reinsurance
1 Receivables for accepted co-insurance premium
Growth
index
95
36.441.559
39.499.291
92
35.305.930
38.309.048
92
1.129.680
1.187.360
95
5.949
2.883
206
8.285.290
10.935.474
76
134.980
175.025
77
2 Receivables for accepted reinsurance premium
3 Receivables for co-insurers participation in claims
4 Receivables for reinsurers participation in claims
5 Other receivables from co-insurance and reinsurance
III. Other receivables and deferred tax assets
165.206
146.969
112
7.979.678
10.582.771
75
5.425
30.709
18
5.778.576
2.555.007
226
1 Receivables for advances for intangible assets
2 Other short-term receivables from insurance operations
3 Short-term financial receivables
4 Other short-term receivables
5 Long-term receivables
6 Receivables for corporate income tax
7 Deferred tax receivables
415.834
418.333
99
2.005.313
325.513
616
829.788
865.108
96
21.540
35.858
60
381.077
910.195
42
27.026.162
3.840.435
704
3.471.088
3.420.218
101
3.320.618
3.269.560
102
2.125.025
IV. Unpaid called-up share capital
E.
Other resources
I.
Tangible fixed assets, excluding land and buildings
1 Equipment
2 Other tangible fixed assets
II. Finances
III. Stocks and other resources
1 Stocks
2 Other resources
F. Short-term active accruals
1 Accrued interest and rent
2 Short-term deferred acquisition costs
3 Other short-term active accruals
150.470
150.658
100
23.429.000
250.018
9.371
126.074
170.200
74
52.661
96.788
54
73.412
73.412
100
5.859.684
5.146.267
114
164.865
147.649
112
5.193.604
4.773.856
109
501.215
224.763
223
277.587
19.741.870
19.882.909
99
394.551.735
368.811.755
107
60.812.257
57.792.399
105
G.
Non-current assets held for sale and discontinued operations
H. Off-balance-sheet register
B. LIABILITIES
A. Equity
I.
Called-up capital
39.998.605
39.998.605
100
1 Share capital
39.998.605
39.998.605
100
2 Uncalled capital (as deductible item)
II. Share premium account
III. Profit reserves
739.652
739.652
100
10.708.979
11.645.873
92
7.999.721
7.999.721
100
2.709.258
3.066.528
88
4.381.404
-1.838.831
-238
4.381.404
-1.838.831
-238
1 Safety margin
2 Statutary and statutory reserves
3 Own shares reserves
4 Own shares (as deductible item)
5 Credit risk equalization reserves
6 Catastrophic losses equalization reserves
7 Other profit reserves
IV. Revaluation surplus
579.624
1 Revaluation surplus in respect of tangible fixed assets
2 Revaluation surplus in respect of long-term financial investments
3 Revaluation surplus in respect of short-term financial investments
4 Other revaluation surplus
V. Retained net profit or loss
3.121.280
VI. Net profit or loss account for the financial year
1.862.336
46 6.750.173
7.247.053
176
26
In euros
Growth
index
on 31 Dec 2012
on 31 Dec 2011
7.000.000
7.000.000
100
300.553.647
273.057.269
110
72.292.765
74.347.697
97
219.725.988
193.296.153
114
94.602
67.505
140
V. Other gross technical provisions
D. Gross technical provisions for life-insurance policies in favor of the insured assuming the
investment risk
8.440.292
5.345.913
158
E. Provisions for other risks and charges
4.020.602
3.734.987
108
4.020.602
3.734.987
108
17.773.468
25.595.663
69
3.190.750
3.429.725
93
B. Subordinated liabilities
C. Gross technical provisions and deferred premiums income
I.
Gross unearned premiums
II. Gross life assurance provisions
III. Gross claims reserves
IV. Gross provisions for bonuses and rebates
1. Provisions for pensions
2. Other provisions
F. Obligations for financial investments of reinsurers in respect of reinvest. contracts at ceding
undertakings
G. Other liabilities
I.
Liabilities from direct insurance operations
1 Liabilities towards the policyholders
1.234.292
1.196.536
103
2 Liabilities towards the agents
1.432.165
1.691.477
85
524.293
541.712
97
6.695.311
10.315.961
65
93
3 Other liabilities from direct insurance operations
II. Liabilities from co-insurance and reinsurance
1 Liabilities for co-insurance premiums
2 Liabilities for reinsurance premiums
3 Liabilities for shares in co-insurance claims
122.071
130.891
6.391.981
10.009.836
64
181.260
175.234
103
7.887.406
11.849.978
67
4 Liabilities for shares in reinsurance claims
5 Other creditors from co-insurance and reinsurance
III. Loans insured with fixed-income securities
IV. Liabilities to banks
V. Liabilities from financial contracts
VI. Other liabilities
a) Other long-term liabilities
1 Long-term liabilities from financial leasing
2 Other long-term liabilities
3 Deferred tax liabilities
b) Other short-term liabilities
7.887.406
11.849.978
67
1 Short-term liabilities towards employees
2.696.785
2.604.077
104
2 Other short-term liabilities from insurance operations
2.878.903
2.704.810
106
15.650
3.417.722
0
260.695
914.331
29
2.035.374
2.209.038
92
4.391.763
1.631.437
269
3 Short-term financial liabilities
4 Liabilities for corporate income tax
5 Other shot-term liabilities
H. Passive accruals
1. Predefined deferred costs and charges
1.015.401
52.500
1.934
2. Other passive accruals
3.376.361
1.578.937
214
19.741.870
19.882.909
99
I.
Non-current creditors under non-current assets held for sale and discontinued operations
J. Off-balance-sheet register
177
Balance Sheet of the Life Insurance
In euros
on 31 Dec 2012
A. ASSETS
Growth
on 31 Dec 2011 index
437.825.232
393.089.139
111
5.484.127
6.708.897
82
5.484.127
6.708.897
82
296.223.040
276.929.265
107
1.229.179
1.322.507
93
1.181.521
1.273.507
93
55.091
55.091
100
1.126.430
1.218.416
92
2 Goodwill
I.
Land and buildings
1 Land
2 Buildings
47.658
49.000
97
15.305
15.305
100
32.353
33.695
96
240.000
190.000
126
240.000
190.000
126
294.461.325
275.218.490
107
294.461.325
261.867.149
112
7.202.813
7.930.946
91
252.520.951
224.025.361
113
9.979.755
10.653.818
94
1.1.
credits
1.5. Other lendings
1.6. Bank deposits
24.755.718
19.254.938
129
2.086
2.086
100
0
13.351.341
0
0
13.351.341
0
292.537
198.268
148
33.681
8.892
379
33.681
8.892
379
258.855
189.376
137
258.855
189.376
137
121.875.865
107.045.539
114
2.2.
f)
178
In euros
on 31 Dec 2012
Growth
D. Receivables (receivables on associated companies and group companies are shown separately as sub-items1.467.583
of the items I, II, III) 2.081.060
I.
71
799.504
896.027
89
799.504
895.671
89
106.123
75.711
140
106.123
75.711
140
561.957
1.109.322
51
100.050
62.826
159
15.650
406.256
4
398.158
361.901
110
356
278.338
48.099
E.
12.717.348
148.213
8.580
38.583
44.511
87
1 Equipment
23.200
29.128
80
15.383
15.383
100
12.678.765
103.703
12.226
Other resources
I.
II. Finances
1 Stocks
2 Other resources
57.269
176.165
33
28.655
118.979
24
28.614
57.185
50
437.825.232
393.089.139
111
46.201.705
31.249.993
148
Called-up capital
15.427.686
15.427.686
100
1 Share capital
15.427.686
15.427.686
100
G.
B. LIABILITIES
A. Equity
I.
2.072.254
2.072.254
100
3.085.537
11.854.468
26
3.085.537
3.085.537
100
10.452.590
1.473.788
709
10.452.590
1.473.788
709
8.951.690
287.079
3.118
6.211.948
134.719
4.611
1 Safety margin
8.768.931
A part of the revaluation reserve arising for evaluating investment available for sale and which would
in actual realization on the market belong to the insured persons is stated in equity as a part of
revaluation reserve item, while in the accounting reports it is stated among technical provisions.
179
In euros
on 31 Dec 2012
Growth
I.
250.550.075
245.862.303
536.076
572.691
94
236.536.148
232.405.013
102
13.477.851
12.884.599
105
125.126.541
101.805.961
123
1.170.608
1.116.167
105
1.170.608
1.116.167
105
11.101.602
9.314.718
119
8.381.294
8.428.542
99
210.512
141.663
149
8.170.783
8.286.879
99
293.594
128.978
228
293.594
128.978
228
757.198
320
102
investment risk
2. Other provisions
undertakings
I.
2.426.714
222.892
222.892
2.426.714
534.306
454
H. Passive accruals
63.643
65.834
97
1.999.664
282.597
708
345.869
104.944
330
17.538
80.930
22
3.674.701
3.739.997
98
3.739.997
90
290.858
3.383.843
I.
180
Balance Sheet of the ZM
In euros
Growth
index
on 31 Dec 2012
on 31 Dec 2011
830.361.653
760.989.148
109
7.066.237
1.517.378
8.271.750
1.501.701
101
5.484.127
6.708.897
82
64.733
61.152
106
605.523.809
582.201.692
104
10.223.163
11.229.730
91
9.736.196
10.683.362
91
1.973.935
1.982.500
100
7.762.261
8.700.862
89
486.967
546.368
89
15.305
17.684
87
471.662
528.684
89
240.000
190.000
126
240.000
190.000
126
528.783.445
510.353.943
104
510.694.410
458.288.723
111
9.987.315
11.878.315
84
431.245.854
370.188.915
116
17.477.632
19.613.632
89
67.858
91.479
74
A. ASSETS
85
2 Goodwill
I.
Land and buildings
1 Land
2 Buildings
1.1.
1.5. Other lendings
112.741
131.241
86
1.6. Bank deposits
51.159.000
55.664.788
92
644.009
720.352
89
18.089.035
52.065.220
35
988.915
15.486.440
6
83.522
80.830
103
17.016.598
36.497.949
47
66.277.201
60.428.019
110
2.2.
11.143.338
12.740.443
87
11.143.338
12.740.443
87
55.097.306
47.644.049
116
54.967.406
47.521.234
116
129.900
122.815
106
36.557
43.527
84
36.557
43.527
84
121.875.865
107.045.539
114
f)
181
In euros
on 31 Dec 2012
on 31 Dec 2011
D. Receivables (receivables on associated companies and group companies are shown separately as sub-items
49.957.693
of the items I, II, III) 54.159.086
I.
Growth
index
92
37.241.063
40.395.318
92
36.105.434
39.204.720
92
1.129.680
1.187.360
95
5.949
3.238
184
8.391.412
11.011.185
76
134.980
175.025
77
112
165.206
146.969
8.085.801
10.658.481
76
5.425
30.709
18
4.325.219
2.752.584
157
515.884
481.159
107
5.649
42.916
13
1.227.946
1.227.009
100
E. Other resources
I.
1 Equipment
II. Finances
1 Stocks
21.540
35.858
60
2.125.025
278.338
763
429.176
687.302
62
39.743.510
3.988.649
996
3.509.671
3.464.729
101
3.343.818
3.298.688
101
165.853
166.041
100
36.107.765
353.720
126.074
170.200
10.208
74
52.661
96.788
54
73.412
73.412
100
5.916.952
5.322.432
111
193.520
266.628
73
5.222.218
4.831.041
108
501.215
224.763
223
19.741.870
19.882.909
99
B. LIABILITIES
830.361.653
760.989.148
109
A. Equity
107.013.962
89.042.392
120
Called-up capital
55.426.291
55.426.291
100
1 Share capital
55.426.291
55.426.291
100
2 Other resources
G.
I.
277.587
2.811.907
2.811.907
100
13.794.516
23.500.341
59
11.085.258
11.085.258
100
2.709.258
3.066.528
88
1 Safety margin
9.348.555
14.833.994
-365.044
-4.064
14.833.994
-365.044
-4.064
12.072.970
287.125
4.205
8.074.284
7.381.772
109
182
In euros
Growth
index
on 31 Dec 2012
on 31 Dec 2011
7.000.000
7.000.000
100
106
551.103.721
518.919.571
72.828.841
74.920.388
97
236.536.148
232.405.013
102
233.203.839
206.180.753
113
94.602
67.505
140
8.440.292
5.345.913
158
125.126.541
101.805.961
123
5.191.209
4.851.153
107
5.191.209
4.851.153
107
26.859.756
33.998.635
79
11.572.044
11.858.267
98
1.444.804
1.338.199
108
1.432.165
1.691.477
85
8.695.075
8.828.591
98
6.988.905
10.444.939
67
122.071
130.891
93
6.685.574
10.138.814
66
181.260
175.234
103
8.298.806
11.695.430
71
I.
investment risk
2. Other provisions
undertakings
I.
8.298.806
11.695.430
71
2.696.785
2.604.077
104
2.942.546
2.770.645
106
H. Passive accruals
3.011.466
606.563
1.019.275
2.052.912
2.289.968
90
8.066.464
5.371.434
150
60
1.306.259
52.500
2.488
6.760.205
5.318.934
127
19.741.870
19.882.909
99
I.
183
Statement of the Comprehensive Income
from 1 Jan to
31 Dec 2012
In euros
from 1 Jan to
31 Dec 2011
Growth
index
A. Property insurance account statement, excluding health insurances
I.
Net profit from insurance premiums
142.645.689
135.062.022
1 Balanced gross insurance premium
186.917.560
187.839.066
100
375.923
317.898
118
2 Balanced accepted co-insurance premium (+)
3 Balanced given co-insurance premium (-)
-1.153.106
-1.654.165
70
-44.347.832
-50.321.037
88
2.475.113
-84.515
-2.929
6 Change in unearned premiums for reinsurance and co-insurance operations (+/-)-1.621.969
Allocated investments return transferred from net technical
account (D.VIII)
8.022.690
-1.035.224
157
10.273.430
78
4 Balanced reinsurance premiums (-)
5 Change in gross unearned premiums (+/-)
II.
III. Other net technical income
300.611
480.774
63
100.649.794
88.777.227
113
109.911.821
102.530.061
107
-3.647.475
-5.386.467
68
-545.284
-475.059
115
4 Balanced reinsurers participation (+/-)
-24.115.326
-26.534.203
91
5 Change in gross claims outstanding (+/-)
26.453.348
17.017.594
155
6 Change in claims outstanding for reinsurance and co-insurance operations (+/-)-7.407.291
1.625.301
-456
-81.295
3.806
IV. Net charges for claims
1 Balanced gross claims
2 Income from established gross recourse claims (-)
3 Balanced co-insurers participation (+/-)
V.
106
Change in other net technical provisions (+/-)
VI. Net charges for bonuses and rebates
-3.094.379
75.927
11.351
669
40.308.853
39.839.706
101
13.615.487
12.776.425
107
36.071.928
37.038.076
97
2.343.373
2.187.533
107
24.848.014
23.383.362
106
17.367.691
16.799.595
103
2.830.987
2.738.225
103
3.2.3. Other labour costs
3.3. Service costs of natural persons, who are not pursuing
activity (costs by work agreements, copyright agreements
and relating to legal relations), with company charges
4.649.336
3.845.542
121
296.679
302.263
98
3.4. Other operating expenses
8.583.862
11.164.917
77
-9.378.562
-9.974.795
94
2.401.595
2.190.010
110
126
VII. Net operating expenses
1 Acquisition costs
2 Changes in deferred acquisitions costs (+/-)
3 Other operating expenses
3.1. Depreciation of assets value needed for operation
3.2. Labour costs
3.2.1. Employees salaries
3.2.2. Social and pension insurance costs
4
Income from reinsurance commissions and profit participation (+/-)
VIII. Other net technical charges
1 Charges for preventive action
207.292
164.520
2 Contributions for loss coverage by non-insured and unknown vehicles
424.542
530.179
80
1.769.761
1.495.311
118
4.438.442
14.916.635
30
3 Other net technical charges
IX. Property insurance account, excluding health insurance (I + II +
III - IV + V - VI - VII - VIII)
184
from 1 Jan to
31 Dec 2012
In euros
from 1 Jan to
31 Dec 2011
Growth
index
B. Life insurance account statement
I.
Net profit from insurance premiums
76.689.679
75.240.065
102
1 Balanced gross insurance premium
76.992.250
75.404.821
102
-366.265
-248.509
147
38.905
74.860
52
24.789
14.075.136
8.892
13.812.377
279
102
180.665
154.570
117
2 Balanced accepted co-insurance premium (+)
3 Balanced given co-insurance premium (-)
4 Balanced reinsurance premiums
5 Change in gross unearned premiums (+/-)
II.
6 Change in unearned premiums for reinsurance operations (+/-)
Investments income
1 Income from dividends and participating interest
1.1. Income from dividends and other profit participation in group companies
1.2. Income from dividends and other profit participation in associated companies
1.3. Income from dividends and other profit participation in other companies
180.665
154.570
117
13.355.111
s investments income in12.023.348
associated companies and111
group companies)
2 Other investments income (in items 2.1., 2.2. and 2.3. insurance company separately show
2.1. Incomes
Incomes from
from land and buildings
buildings
2.2. Interest
Interest income
income
12.355.033
11.489.000
108
12.355.033
11.489.000,30
108
1.000.078
534.347
187
913.282
514.740
177
86.796
19.607
443
539.360
1.634.459
33
11.712.241
11.465.827
102
840.357
644.304
130
40.514.291
41.126.039
99
38.267.524
37.491.597
102
207
> Income from group company interests
> Income from participating interest
2.3. Other
Other investment
investment income
income
2.3.1. Financial income for revaluation
2.3.2. Other financial income
3 Value re-adjustments on investments
III.
4 Gains on the disposal of investments
Net unrealized investment profit of life-insurance policies in
favor of the insured assuming the investment risk
IV.
Other net income from insurances
V.
1 Balanced gross claims
2 Income from established gross recourse claims (-)
3 Balanced reinsurers participation (+/-)
4 Change in gross claims outstanding (+/-)
VI.
5 Change in claims outstanding for reinsurance operations (+/-)
1 Changes in life assurance provisions
1.1. Changes in gross life assurance provisions
-122.653
-59.318
2.438.899
3.722.141
66
-69.480
-25.736.550
-28.382
-16.833.937
245
153
-25.736.550
-16.833.937
153
-25.736.550
-16.833.937
153
94
1.2. Change in reinsurance participation (+/-)
2 Change in other net technical provisions (+/-)
2.1. Change in other gross technical provisions (+/-)
2.2. Change in reinsurance participation (+/-)
VII. Net charges for bonuses and rebates
VIII. Net operating expenses
22.513.438
23.838.301
1 Acquisition costs
7.271.570
9.484.063
77
1.291.417
2.965.618
44
14.006.592
11.421.392
123
98.006
100.768
97
7.385.515
7.657.064
96
5.246.157
5.575.733
94
855.140
908.808
94
3.3. Service costs of natural persons, who are not pursuing
activity (costs by work agreements, copyright agreements
and relating to legal relations), with company charges
1.284.218
1.172.523
110
197.786
201.509
98
6.325.285
3.462.052
183
-56.141
3.693.430
-32.772
3.022.044
171
122
1.342
1.342
100
1.495.953
2.993.051
50
2.196.135
27.651
7.942
5.221.581
83.248
13.914.980
38
92.709
90
83.248
92.709
90
-1.168.970
-27.331
4.277
6.723.845
2.361.893
285
3.2. Labour costs
IX.
4 Income from reinsurance commissions and profit participation (+/-)
Investment charges
1 Depreciation of asset investments that are not needed for operation
2 Charges for asset management, interest charges and other
financial charges
3 Financial charges for revaluation
X.
4 Losses on the disposal of investments
Net unrealized investment losses of life-insurance policies in
XI.
Other net technical charges
1 Charges for preventive action
2 Other net technical charges
XII. Allocated investments return transferred in net technical
account (-)
XIII. Life insurances account
(I+ II + III + IV – V + VI – VII – VIII – IX – X – XI – XII)
C. Health insurance account statement
Ca. Supplementary insurance account statement
185
from 1 Jan to
31 Dec 2012
In euros
from 1 Jan to
31 Dec 2011
Growth
index
D. Net technical account
I.
Property insurance account, excluding health insurances (A.IX)
4.438.442
14.916.635
30
II.
Life insurances account (B.XIII)
6.723.845
2.361.893
285
III.
Health insurances account (C.XIII)
IV.
Investment income
12.992.253
13.597.816
96
120.297
136.769
88
120.297
136.769
88
11.931.188
10.484.843
114 companies and gro
2 Other investments income (in items 2.1., 2.2. and 2.3. insurance company separately
shows investments
income in associated
2.1. Incomes from land and buildings
90.690
94.956
96
11.788.265
10.214.924
115
11.788.265
10.214.924
115
52.233
174.963
30
52.233
174.963
30
1.972
2.742
72
938.795
2.973.462
32
-1.168.970
-27.331
4.277
3.861.982
2.197.486
176
34.719
37.501
93
2 Charges for asset management, interest charges and other financial charges
1.431.959
1.261.208
114
1.561.063
859.308
182
834.241
39.469
2.114
8.022.690
58.696
10.273.430
49.145
119
58.696
49.145
119
2.2. Interest income
> Income from group company interests
> Income from participating interest
2.3. Other investment income
3 Investment revaluation income
V.
VI.
Allocated investments return transferred from life insurances
(B.XII)
Allocated investments return transferred from health insurances
(C.XII)
VII. Investment charges
VIII. Allocated investments return transferred from property
insurances account statement, excluding health insurances
IX. Other insurance income
1 Other income from property insurance, excluding health insurances
78
2 Other life insurance income
X.
3 Other health insurance income
Other insurance charges
1 Other charges from property insurance, excluding health insurances
2 Other life insurance charges
XI.
3 Other health insurance charges
Other income
1 Other income from property insurance, excluding health insurances
2 Other life insurance income
XII.
4.723.685
4.538.750
104
4.723.562
4.398.690
107
123
140.059
0
1.230.391
818.470
150
1.036.076
383.081
270
194.315
435.388
45
3 Other health insurance income
Other charges
151.770
67.792
224
1 Other charges from property insurance, excluding health insurances
112.638
40.970
275
39.132
26.822
146
7.514.532
14.639.171
51
1 Profit or loss for accounting period from property insurance, excluding health insurances
1.804.597
12.036.101
15
2.603.070
219
-2.450.898
-27.225
9.002
7.717.014
10.557.075
73
2 Other life insurance charges
3 Other health insurance charges
XIII. Profit or loss account for accounting period prior to taxation
(I + II + III + IV + V + VI - VII - VIII + IX - X + XI - XII)
2 Profit or loss for accounting period from life insurances
3 Profit or loss for accounting period from health insurances
XIV. Income tax
XV. Deferred taxes
XVI. Net profit or loss account for accounting period (XIII - XIV + XV)
5.709.935
2.248.416
E. All-encopassing return calculation
I.
Net profit / loss for the financial year after taxation
7.717.014
10.557.075
73
II.
Other all-encopassing output after taxation (1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9) 8.796.931
-4.967.437
-177
10.486.671
-6.209.297
-169
-1.689.740
1.241.859
-136
16.513.945
5.589.637
295
1
2
3
III.
Net profit/loss recognized in revaluation surplus regarding tangible
fixed assets
Net profit/loss recognized in revaluation surplus regarding
intangible fixed assets
Actuarial net profit/loss for retirement plans
4
5
Net profit/loss of non-current assets, available for sale
6
7
Net profit/loss from cash flow hedges
Associated net profit/loss recognized in revaluation surplus and
retained profit/loss from capital investments of associated and
8
Other net profit/loss of other all-encompassing return
9
Tax from other all-encompassing return
Total all-encopassing return (I + II)
186
PRESENTATION OF ASSETS AND LIABILITIES OF CLASSIC LIFE INSURANCE BUSINESS FUND
- 5063400020
In euros
on 31 Dec 2012
ASSETS
A.
Investments in real estates and financial investments
on 31 Dec 2011
Growth
index
272.562.949
269.001.143
101
269.555.132
265.119.706
102
47.658
49.000
97
269.473.792
265.070.706
102
I.
Investment property
II.
Financial investments in group companies and in associated companies
1 Investments in group companies
2 Investments in associated companies
III.
Other financial investments
1 Shares and other variable-yield securities and coupons
in mutual funds
2 Fixed-income debt securities
3 Participation in investment funds
6.902.365
7.630.497
90
234.840.094
215.398.615
109
8.975.625
9.647.656
93
18.755.709
32.393.938
58
819.455
438.022
3.600.071
527.853
23
83
415.389
518.499
80
22.634
9.354
242
4 Given loans with security right
5 Other loans
6 Bank deposits
7 Other financial investments
IV.
Amount of technical provisions transferred to reinsurers
- from unearned premiums
33.681
33.681
- from life assurance provisions
- from claims outstanding
- from provisions from bonuses and rebates
- from technical provisions for life-insurance policies in
B.
Receivables
I.
3 Other receivables from direct insurance operations
II.
Reinsurance receivables
III.
Other receivables
C.
Other resources
I.
Finances
D.
Short-term active accruals
II.
381.432
3.072.218
12
2.123.123
2.123.123
113.965
113.965
1.863
1.863
65.239
6.572
167.399
96.996
39
7
58.667
70.403
83
262.924.580
256.809.142
102
1.930.881
317.100
609
250.544.904
245.862.303
102
530.905
572.691
93
236.536.148
232.405.013
102
13.477.851
12.884.599
105
8.054.452
8.035.268
8.049.512
8.023.400
100
100
129.445
94.714
137
7.905.823
7.928.687
100
Other resources
LIABILITIES
A.
Revaluation surplus
B.
C.
D.
E.
I.
II.
Gross life assurance provisions
III.
Gross claims reserves
Gross technical provisions for life-insurance policies in
Obligations for financial investments of reinsurers in
respect of reinvestment contracts at ceding undertakings
Other liabilities
I.
F.
II.
Liabilities from co-insurance and reinsurance
III.
Other liabilities
Passive accruals
8.932
19.183
17.180
112
2.394.343
2.580.226
93
187
CLASSIC LIFE INSURANCE BUSINESS FUND STATEMENT - 5063400020
from 1 Jan to
31 Dec 2012
In euros
I.
Insurance premium income
1 Balanced insurance premium
2 Changes in unearned premiums
II.
Investments income
from 1 Jan to
31 Dec 2011
Growth
index
30.531.208
31.890.445
96
30.464.633
31.804.063
96
66.575
86.381
77
12.447.020
13.281.265
94
180.665
154.570
117
2 Other investment income
180.665
154.570
117
11.771.494
11.504.451
102
11.204.424
11.113.984
101
567.071
390.468
145
500.800
373.900
134
66.271
16.568
400
494.860
1.622.244
31
61.735
27.557
224
4 Profit on the disposal of investments
III.
Other income from insurances
IV.
Charges for claims
26.580.254
30.124.174
88
1 Balanced claims
25.987.003
27.001.166
96
593.251
3.123.008
19
Change in other technical provisions (+/-)
-4.258.661
-5.430.034
78
1 Changes in life assurance provisions (+/-)
-4.258.661
-5.430.034
78
-4.258.661
-5.430.034
78
0
0
0
0
2 Changes in claims outstanding
V.
1.1. Changes in life assurance provisions, excluding participation in profits (+/-)
1.2. Changes in life assurance provisions in respect of participation in profits (+/-)
2 Change in other technical provisions (+/-)
VI.
Charges for bonuses and rebates
VII.
Costs internalized according to insurance policies
7.246.564
5.329.755
136
1 Initial costs
1.572.894
1.430.113
110
2 Incasso, administrative expenses and overheads
5.673.670
3.899.642
145
VII.a. Net operating costs
6.630.786
6.621.478
100
1 Acquisition costs
748.602
863.905
87
11.736
-70.403
-17
5.905.402
5.844.355
101
98.006
100.768
97
2.930.762
3.454.089
85
2.081.810
2.357.445
88
339.341
384.248
88
3 Final or payment costs
3.2. Labour costs
509.611
712.395
72
3.3. Service costs of natural persons, who are not pursuing activity (costs by work contracts, copyright
49.435
works contracts and46.587
relating to legal
106 relations), with comp
2.827.199
2.242.911
126
4
Incomes from reinsurance commissions and profit participation (+/-)
-34.954
-16.379
213
3.629.787
2.674.487
136
1.342
1.342
100
0
0
1.439.978
2.664.893
54
2.188.467
8.252
26.522
VIII. Investment charges
IX.
Other net technical charges
X.
Life insurance account (I+ II + III - IV + V - VI - VII - VIII - IX)
X.a. Life insurance account (I+ II + III - IV + V - VI - VII.a - VIII - IX)
35.253
43.276
81
1.289.444
1.597.542
81
1.905.222
305.818
623
188
PRESENTATION OF ASSETS AND LIABILITIES OF UNIT - LINKED LIFE INSURANCE BUSINESS
FUND 5063400022 (KSNT1)
In euros
ASSETS
A.
Growth
index
on 31 Dec 2012
on 31 Dec 2011
117.703.939
102.746.913
115
112.356.490
101.936.390
110
I.
Investment property
II.
0
0
112.097.634
101.747.015
103.252.405
87.015.856
119
8.845.230
7.733.184
114
0
6.997.975
0
258.855
189.376
137
258.855
189.376
137
Receivables
495.018
486.424
102
I.
330.105
354.969
93
330.105
354.969
93
111
III.
in mutual funds
110
5 Other loans
6 Bank deposits
IV.
- from technical provisions for life-insurance policies
B50
B.
C.
D.
II.
83.899
75.711
III.
Other receivables
81.013
55.744
145
Other resources
4.664.901
7.490
62.285
I.
Finances
4.664.901
7.490
62.285
II.
Other resources
187.530
316.609
59
22.083
21.983
100
165.447
294.626
56
116.433.377
98.515.417
118
5.984.672
4.237.112
141
12.913
15.202
85
5.971.759
4.221.910
141
LIABILITIES
A.
Revaluation surplus
B.
I.
II.
III.
C.
108.876.451
92.543.076
118
E.
Other liabilities
617.932
611.697
101
I.
331.010
382.508
87
80.458
46.539
173
250.551
335.969
75
220.566
120.046
184
1 Liabilities towards policyholders
2 Liabilities towards insurance brokers
F.
II.
III.
Other liabilities
Passive accruals
66.357
109.142
61
954.322
1.123.532
85
189
UNIT-LINKED LIFE INSURANCE BUSINESS FUND STATEMENT 5063400022 (KSNT1)
from 1 Jan to
31 Dec 2012
In euros
from 1 Jan to
31 Dec 2011
Growth
index
I.
Balanced gross insurance premium
39.826.728
39.980.656
100
II.
Investments income
11.711.799
11.576.512
101
0
0
1.1. Income from dividends and group participating interest
0
0
1.2. Income from dividends and associated participating interest
0
0
1.3. Income from dividends and other participating interest
0
0
11.694.057
11.564.298
0
0
142.687
129.473
110
11.551.371
11.434.825
101
11.551.371
11.434.825
101
0
0
0
0
17.741
12.214
145
12.199.060
10.479.286
116
12.199.060
10.479.286
116
0
0
-18.012.121
-8.759.767
-16.334.041
-8.186.385
200
-1.678.080
-573.381
293
11.343.706
13.860.767
82
7.467.986
10.439.062
72
III. Charges in respect of insurance sum payment or redemption value
1 Regular termination
101
2 Extraordinary termination
1.1. with insurance withdrawal
1.2. with termination of insurance contract
1.3. with death of an insured person
V.
2
VI. Balanced costs and commissions
1 Balanced input costs
206
2 Output costs
3 Management commission
VIII. Long-term business fund account (I+II-III+IV+V-VI-VII)
3.875.720
3.421.705
113
5.162.615
13.877.739
37
0
0
0
0
5.154.947
13.858.340
7.668
19.399
40
4.821.025
4.579.610
105
190
37
PRESENTATION OF ASSETS AND LIABILITIES OF UNIT-LINKED LIFE INSURANCE BUSINESS
FUND – 5063400023 (KSNT-2 ZM ZAJAMČENI)
In euros
on 31 Dec 2011
8.389.103
4.532.497
185
8.032.078
4.524.279
178
8.032.078
4.524.279
178
7.765.408
4.185.351
186
266.670
338.928
79
7.992
7.883
101
ASSETS
A.
Growth
index
on 31 Dec 2012
I.
Investment property
II.
III.
in mutual funds
5 Other loans
6 Bank deposits
IV.
B.
Receivables
I.
C.
D.
II.
III.
Other receivables
7.992
7.883
101
Other resources
349.033
335
104.099
I.
Finances
349.033
335
104.099
II.
Other resources
8.294.244
4.508.404
184
8.294.207
4.508.372
184
37
32
115
37
32
115
LIABILITIES
A.
Revaluation surplus
B.
C.
E.
Other liabilities
I.
F.
II.
III.
Other liabilities
Passive accruals
191
UNIT-LINKED LIFE INSURANCE BUSINESS FUND STATEMENT – 5063400023 (KSNT-2 ZM
ZAJAMČENI)
from 1 Jan to
31 Dec 2012
In euros
I.
II.
Investments income
from 1 Jan to
31 Dec 2011
3.353.646
2.506.240
134
245.078
117.810
208
117.810
208
117.810
208
-3.785.835
-2.700.116
140
-3.785.835
-2.700.116
140
132.231
32.188
411
132.231
32.188
411
-108.255
295
0
0
0
0
245.078
0
245.078
0
0
0
0
0
Growth
index
0
0
0
V.
2
0
2 Output costs
0
0
0
0
0
-319.343
192
PRESENTATION OF ASSETS AND LIABILITIES OF UNIT-LINKED LIFE INSURANCE BUSINESS
FUND – 5063400025 (KSNT-2A ZM PRIZMA HIBRID)
In euros
on 31 Dec 2012
ASSETS
A.
I.
Investment property
II.
on 31 Dec 2011
Growth
index
2.191.315
889.374
246
1.746.153
804.737
217
1.746.153
804.737
217
1.746.153
444.980
392
III.
in mutual funds
5 Other loans
6 Bank deposits
359.756
IV.
- from technical provisions for life-insurance policies in
B.
Receivables
57.670
23.167
249
I.
54.010
22.204
243
54.010
22.204
243
C.
D.
II.
III.
Other receivables
3.660
964
380
Other resources
358.878
4.284
8.377
I.
Finances
358.878
4.284
8.377
II.
Other resources
28.614
57.185
50
28.614
57.185
50
2.028.886
577.560
351
1.976.382
517.401
382
LIABILITIES
A.
B.
C.
D.
E.
Revaluation surplus
I.
II.
III.
Obligations for financial investments of reinsurers in
respect of reinvestment contracts at ceding undertakings
Other liabilities
17.325
23.920
72
I.
15.013
22.633
66
605
410
148
14.408
22.223
65
2.312
1.287
180
35.179
36.239
97
F.
II.
III.
Other liabilities
Passive accruals
193
UNIT-LINKED LIFE INSURANCE BUSINESS FUND STATEMENT – 5063400025 (KSNT-2A ZM
PRIZMA HIBRID)
from 1 Jan to
31 Dec 2012
In euros
from 1 Jan to
31 Dec 2011
Growth
index
3.259.377
1.036.425
314
168.373
32.428
519
0
0
0
0
0
0
0
0
168.373
32.428
0
0
I.
II.
Investments income
519
7.500
1.425
526
160.873
31.002
519
160.871
31.002
519
2
0
0
0
0
0
79.354
11.145
712
79.354
11.145
712
0
0
-1.458.981
-517.401
282
1
-1.358.012
-517.401
262
-100.969
0
1.244.731
362.706
343
1.085.138
323.821
335
159.593
38.885
410
66.634
56.640
118
0
0
V.
Changes in life assurance provisions (+/-)
2 Change in other net technical provisions (+/-)
2 Output costs
0
0
66.634
56.640
0
0
578.050
120.960
194
118
478

ZAVAROVALNICA MARIBOR D.D. ANNUAL REPORT

Transcription

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