Ljubljana, 02 June (STA) - The Slovenian insurance market remains stable and financially robust, with insurers posting pre-tax profits of EUR 282 million in the past year despite significant payouts from natural disasters, the Insurance Supervision Agency (AZN) said. Reinsurers recorded EUR 66 million in pre-tax profits, while pension companies achieved EUR 12 million.
The country's ten insurers, two reinsurers and four pension companies managed combined assets worth EUR 11.8 billion, while maintaining capital adequacy ratios well above regulatory requirements. Insurers achieved a 252% capital adequacy ratio, with reinsurers at 274% and pension companies at 232%.
Total gross premiums reached EUR 2.4 billion, down 13% from 2023, primarily due to the elimination of the old compulsory top-up health insurance scheme. Property insurance premiums fell 18% to EUR 1.8 billion, while non-property insurance grew slightly to EUR 630 million.
The sector weathered substantial natural disaster claims, paying out approximately EUR 130 million for the devastating floods 2023 - the largest single loss event. Last year's hailstorms caused an additional EUR 90 million in damage claims.
AZN head Gorazd Čibej described the market as "very stable and well-capitalised," providing consumers confidence in insurers' security. However, officials highlighted critical coverage gaps that leave Slovenia vulnerable to future disasters.
Only 20% of the country's earthquake-prone buildings carry appropriate seismic coverage, creating what Čibej called an "enormous insurance gap." With two-thirds of homes lacking adequate protection, officials warn of potential catastrophic exposure given Slovenia's location in one of Europe's most seismically active regions.
The agency estimates that an earthquake similar to Croatia's 2020 Petrinja disaster would cause approximately EUR 9 billion in building damage if it struck Ljubljana.
AZN is exploring mandatory insurance schemes for apartment buildings and other European models to address the coverage shortfall. Deputy Director Niko Erker noted successful approaches including Spain's system where natural disaster coverage is embedded in all property premiums.
The 25-year-old supervisory agency issued 41 recommendations and warnings last year, conducted six business reviews, and maintained oversight of cyber security and climate-related risks - both identified as key emerging threats for the sector.
Agency officials stressed the urgency of improving disaster preparedness, noting that while cyber attacks remained limited, global climate-related losses were substantial in 2024, with only about one-third of damages covered by insurance worldwide.
