See, if a private investor comes in, you get the same amount of money out through taxes, plus you get the money from the sale If for some reason somebody would really fork over money as if Triglav was worth a billion euros, I think the sale would be justified.

No wonder I couldn’t find the info. Slovenian version takes ages to open….

I think only KAD’s portion (the said 35%) of profits would go directly to pension fund. As that is KAD’s purpose anyhow, noone argues about that.

Catch is that until now KAD only managed (but didn’t own) those shares. If the law was to be passed (i.e.: more people would vote YES than NO), KAD would start owning those shares and there is no safeguard to prevent it from selling the shares at the first opportunity, cutting a steady trickle of cash into the pension system.

At least, the opposition says so. The government obviously says noone is thinking about selling Triglav at all.

http://www2.zav-triglav.si/ang/aktualno.asp?id=138&podr=aktualno

Wishful thinking, same as the valuation. The total pre-tax profit was EUR 43,9 million. They further say that this is 10.3 ROE. In that case, the total average capital is 426.2 million EUR.

It seems that the state already takes about 30% of the profits through taxes. If all the profits will be “injected” directly in the pension system, what’s the motivation for the employees and management to keep increasing profits? Why not just sit on their ass in a cushy quasi-government job?

From what I understand, the problem is in how much the taxpayers have actually put into Triglav over the years and what should become of that money.

Having done some additional research, there does appear to be a general agreement that taxpayers’ share is about 35 percent (estimated at 1 bln euros).

Now, as you have already seen I’m not good with numbers, so feel free to correct me, but: In 2006 Triglav’s capital gain was about 10 percent. This means that the above 1 bln EUR would account for some 100 milion euros in capital gain which would be injected into the pension system on a yearly basis. It would be a shame to waste that.

Sorry, pet peeve. In fact, more of a professional deformation.

Of course this insurance company is great. If there’s an earthquake or a flood in SLO, the taxpayers foot the bill anyway.

But if it’s so hard to value, is it really such a cash cow?