SAVA Re Group's Q1 net profit down by 3.2% y-o-y to EUR 7.5 million

12 June 2014 — Vlad BOLDIJAR
sava_reIn the first quarter 2014 the SAVA Re Group generated a net profit of EUR 7.5 million or 3.2 less y-o-y, but "which is 31.4% of the planned profit for the full year 2014," noted the Slovenian group in a statement.

"First quarter results were impacted by a major loss, which reduced the Group's net profit by EUR 6 million. Still the management believes that the results achieved are solid and that planned full year targets will be achieved as the annualized return on equity is 11.9%, which is better than the Group's target figure," announced SAVA Re Group.

In 1Q2014 2014, the SAVA Re Group wrote gross consolidated premiums of EUR 145.9 million, or 70% more y-o-y. "The increase is due to the consolidation of Zavarovalnica MARIBOR (impact of EUR 79.8 million)". At the same time, the consolidated 1Q2014 gross premiums written represent 32.5% of the planned full-year premium volume.

According to the group, if Zavarovalnica MARIBOR had already been consolidated in the first quarter of 2013, the Group would have recorded a 2.3% drop in GWP. "This is partly due to a continued decline in premiums on the Slovenian insurance market, partly due to the planned decrease in premiums at Zavarovalnica MARIBOR because of more selective profit-focused underwriting, partly a result of reduced reinsurance premiums from international markets due to the trends of premium rates and partly due to the loss of certain contracts because of the rating review following the losses related to subordinated bank bonds at the end of 2013.

Read here "The unaudited financial report of the SAVA Re Group and Pozavarovalnica Sava d.d. for the three months to 31 March 2014."

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