Slovenian gross domestic product (GDP) shrank 8.1% last year, according to the National Statistics Office of Slovenia (SURS). This was the first slide in annual GDP since 1992. In the fourth quarter of 2009 Slovenia's economy grew by 0.1% compared to the previous three months, while dropping by 5.8% from the same period in 2008, SURS said. As for 2010, the Slovenian government’s forecast was recently revised to 0.6% from 0.9% because of the unexpectedly slow recovery of domestic demand.

The Slovenian insurance market accounts for approximately 6.7% of the regional outcome. Although Slovenia is far from being a big country and has a populations of only 2m, its high living standard have had a significant influence on the development of the insurance market. With over EUR1,000 in insurance density, Slovenia prides itself as being one of the most developed insurance markets in the region.

Slovenia is one of the few new EU members with a predominantly domestic ownership, since nine insurance companies, a good 91% of the entire insurance market, are still under domestic majority ownership. In fact, not only do the large foreign players have a weak presence, but Slovenian insurance companies have started to penetrate the markets of other EU states, playing the role of investor themselves.

Slovenian insurers closed 2009 with a 2.76% increase in GWP, to EUR2.07bn. The Non-life market posted a better performance with a 5% hike of the premium amount to EUR1.45bn. Unlike other markets in the region, Slovenia recorded positive changes for most Non-life insurance lines, except MTPL and Accident insurance. But 2009 ended in red for the Life insurance sector, with a 2% decrease in GWP to EUR630.11m and claims paid rising almost 3% to EUR1.37bn. The only business line that recorded a significant growth in paid claims volume was Motor Hull, with a 14% increase, while for Fire insurance claims paid fell almost 35% to EUR62m.