The highest GWP growth rates were achieved in Croatia (22.3%) and on the Macedonian market (9.2%). To date the Group wrote 57.6% of total Group premiums planned for the year 2016.
In 1H 2016, the SAVA Re Group generated a net profit of EUR 14.3 million, 16.2% down y-o-y; however, the management estimates that the Group's annual target can still be reached. Compared to the first quarter of 2016, the profit of the reinsurance segment improved, while the decline in the half-year profit was due to a lower profit of the Slovenian non-life insurance segment as a result of a slightly weaker performance of motor insurance business and the establishment of certain technical provisions. This is reflected in a less favorable incurred loss ratio compared to both last year's and the one planned. There was also a minor year-on-year decline in profits generated by the international non-life insurance business and Slovenian life insurance business.
On the other hand, both the expense ratio and the return on the investment portfolio for the first half of 2016 were better than planned for the full year 2016. Furthermore, despite the challenging conditions in the financial markets, the return on the investment portfolio dropped by only 0.1 percentage points.
Another important event in the second quarter of 2016, as stated by the Group, was the Standard & Poor's affirmation of the A- ratings on SAVA Reinsurance Company. The outlook is stable.
The most important project that the SAVA Re Group is working on in 2016 is, however, the merger of the Group's four EU-based insurers. The project is running according to schedule with the aim that as of 2 November 2016, the insurers will be operating as a single entity.
Click here to download the full unaudited interim financial report of the SAVA Re Group and Pozavarovalnica SAVA D.D.
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