Europe Supplement 2005 - Why Slovenia is my choice for a great next five years.

(From Reinsurance)

Background

Slovenia is one of the 10 countries that joined the European Union (EU) in May last year and is continuing to manifest smooth adjustment to EU practices. Although the country has not yet joined the monetary union, the Slovenian Insurance Association already publishes market incomes both in tolars (t) and euros. Domestic business is still conducted in Slovenian tolars, with one euro worth t239.5.

Slovenia was the only segment of the Federation of Yugoslavia to escape the bloodshed and political and economic upheaval of Tito's disintegrated heritage in the early 1990s. The country's orderly economic transition opened its borders to foreign capital in the industrial as well as the financial sector, which in the case of insurance resulted in the arrival of numerous foreign-owned companies and a 50% joint venture.

The main players

However, the dominant player, the domestically owned Triglav Zavarovalnica, retained its leading position (although its ownership changed from direct state ownership to shareholder structure, where the bulk of the stock belongs to pension and restitution funds).

Triglav's share of the life market is 50.9% and in non-life 40.7%. The total number of companies in 2004 was 17, including two reinsurance specialists.