SAVA Re Group, FY2016: Profit before tax of EUR 40.7 million, 1.4% up y-o-y

The Slovenian SAVA Re Group closed the year 2016 with a profit before tax of EUR 40.7 million, an 1.4% y-o-y improvement, mainly due to the underwriting result of international reinsurance business. The after-tax profit was EUR 32.9 million, which is 1.3% below the y-o-y figure because of tax effects. The Group also reached a major goal by merging all its EU-based insurers.

The profit of non-life business in Slovenia was lower, mainly due to the hailstorm event that hit the portfolio of Zavarovalnica SAVA. At the SAVA Re Group level, this event had a negative impact of EUR 6 million on profits (EUR 5 million impact on incurred claims and reinstatement premium of EUR 1 million). Despite this catastrophic event, the profit generated by this segment was offset by other improvements and was only EUR 3 million below the prior year figure. Furthermore, the Group achieved a better result with international non-life insurance business, mainly as a result of an improved net investment income (2016: EUR 2.3 million; 2015: EUR 1.6 million). The life insurance business altogether produced a marginally lower profit than in 2015 (2016: EUR 10.3 million; 2015: EUR 12.1 million).

Group GWP in 2016 amounted to EUR 490.2 million, up by 0.8% y-o-y. This growth was driven by the non-life insurance business, which grew by EUR 5.8 million (2.3%) in the Slovenian insurance market and by EUR 3.1 million (5.9%) in the markets outside Slovenia. However, there was a decline in international reinsurance premiums but with an increase in the profitability of the operating segment. The Group's life insurance premiums continued to decline modestly in the Slovenian insurance market (-0.2%), but grew by 10.9% on international insurance markets.

In 2016 the Group's net combined ratio (excluding the effect of exchange rate differences) improved by 0.3% percentage points to 94.6%. The Company estimates this movement as very good, especially in view of the realised catastrophic event in 2016 and the larger cost burden due to the merger of its EU-based insurers.

For the year 2016, the Group generated a return on equity of 11.3%, which is better than the Group's long-term goal. The profits earned will allow the Group to follow its dividend policy and planned increase in regular dividend per share.

Related articles

MUNICH Re expects to generate a profit of EUR 2.1-2.5 billion in 2018

MUNICH Re announced it has raised its profit guidance compared with the previous year and is expecting to generate a profit of EUR 2.1-2.5 billion in 2018. The Company also announced that it would buy back another EUR 1 billion worth of shares before the Annual General Meeting in 2019.


GENERALI Group reports record annual operating result

GENERALI Group reported FY net profit of EUR 2.11 billion, up by 1.4% y-o-y, while its operating result amounted to a record of EUR 4.89 billion (2.3% more y-o-y) "thanks to the positive performance of the life segment and the Investments, Asset & Wealth Management business and to the cost reduction reached two years ahead of schedule (-EUR 200 million in mature markets)".



AON UK Ltd appoints new Chief Risk Officer

AON UK Ltd has confirmed the appointment of Matt KIMBER as Chief Risk Officer (CRO). Matt KIMBER has joined AON from JARDINE LLOYD THOMPSON Group (JLT), replacing John NICHOLSON who has been interim CRO for the last 11 months.


New Head of Investor Relations at AEGON

Jan Willem WEIDEMA has been appointed as the new Head of Investor Relations at AEGON. He succeeds Willem van den BERG who has led the Investor Relations team over the past 7 years.



"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.



"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.



Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.



The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!


Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".


See all