SAVA Re, 3Q2016: Non-life insurance business fuelled the Group's positive financial result

22 November 2016 — Daniela GHETU
The SAVA Re Group ended the first 3 quarters of 2016 with a y-o-y GWP increase of 1.5%, to EUR 390.5 million, mostly driven vy the Slovenian non-life insurance business (2.4%) and non-Slovenian insurance business (4.0%). This growth was partly offset by a moderate y-o-y decline in reinsurance premiums (-0.6%) and Slovenian life insurance premiums (-0.8%).

The largest growth in gross premiums written was achieved in the Croatian (22.3%) and the Macedonian markets (8.3%). To date the Group wrote 80.0% of the total Group premium target for 2016. The Company estimates that the annual target will be achieved by the end of the year.

In the nine months to 30 September 2016, the SAVA Re Group generated a pre-tax profit of EUR 27.8 million, up 2.9% y-o-y. The net profit was 22.6 million, down 1.6% y-o-y. A major y-o-y improvement was in comprehensive income of EUR 36.8 million, which totalled EUR 16.4 million in the nine months to 30 September 2015. The Company estimates that the SAVA Re Group will be following originally planned results until the year-end.

The largest contribution to overall pre-tax profits came from non-life insurance business (EUR 12.5 million), which was smaller than the y-o-y figure (EUR 15.5 million), as it was impacted by a catastrophe event eroding pre-tax profits by 5.5 million. In mid-August, the north-eastern and central parts of Slovenia were hit by a windstorm with torrential rains and hail causing damage to many residential, commercial and industrial buildings as well as motor vehicles. Reinsurance profits of 4.9 million, however, are an improvement from the y-o-y figure (1-9 2015: EUR 1.4 million).

Further y-o-y improvements were recorded in the expense ratio and the return on the investment portfolio for the nine months to 30 September 2016. In addition, despite the challenging conditions in the financial markets, the return on the investment portfolio (excluding exchange differences) dropped by only 0.1%age points.

The chief project of 2016 was the merger of four SAVA Re Group insurers. Zavarovalnica SAVA (SAVA Insurance Company), which was formed from Zavarovalnica Maribor, Zavarovalnica Tilia and the Croatian insurers Velebit osiguranje and Velebit
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