Triglav Owns ‘Less’ Than $137 Million of Periphery Debt
Zavarovalnica Triglav d.d. wrote down assets exposed to Greece and other smaller euro-region countries on concern the European Union’s most indebted country will default on its debt in the next five years.
“We have already wrote down assets that are exposed to Greece as the likelihood of default increases,” Executive Finance Director Uros Ivanc said in a Webcast via the Ljubljana stock exchange today. “The value of our exposure to bonds and other assets of Greece, Portugal, Ireland and other peripheral countries is less than 100 million euros ($137 million).”
Greece has a 98 percent chance of defaulting on its debt in the next five years, according to credit default swaps tracked by CMA. German Chancellor Angela Merkel said she won’t let Greece go into “uncontrolled insolvency” as politicians try to limit the contagion to other euro members and Greek Prime Minister George Papandreou fails to reassure investors his country can survive the debt crisis.
The Slovenian insurer, in which the government has an indirect majority, is recovering from the 2009 recession in Slovenia and heavy flooding last year. The company, which operates units throughout the Balkans, aims for a profit of 54 million euros this year after net income surged 90 percent in the first six months, Ivanc said.
The threat to profit guidance comes from possible spill- over effects from the debt crisis in Europe, Ivanc said.
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