SAVA Re: Nine-month profit of EUR 57.2 m exceeds full-year profit target

22 November 2021 — Andrei Victor
In the first nine months of 2021, the Sava Insurance Group generated EUR 548.8 million in operating revenue and a net profit of EUR 57.2 million vs. EUR 46.7 million a year before. The Sava Insurance Group's operating revenue and net profit represented 80% and 108%, respectively, of the full-year 2021 targets, thus company representatives believes that the estimated profit for 2021 published after the close of the half year will be exceeded.

In terms of GWP, in the first nine months, the Group wrote EUR 578.1 million, up 9.1% year on year. The growth in gross premiums written was largely driven by Slovenian life business (55.4% growth), reflecting the Group's acquisition of Vita last year, which contributed EUR 74.3 million in gross premiums written during the period. The Group also posted premium growth in the international reinsurance segment (9.7% growth) and in the Slovenian non-life segment (4.4% growth) if the Freedom of Service (FoS) business is excluded.

In the first nine months, the Group's operating revenue grew by 11.1%. In addition to the segments mentioned above, this growth was driven by the good performance of the pensions and asset management segment as a result of strong sales of financial products by the Group's non-insurance companies and favorable trends in financial markets.

The representatives of Slovenian insurance group mentioned the profitability was supported by a relatively benign claims experience thanks to a lower loss rate in the motor business, the inclusion of Vita in the Group, and the improved performance of pension and asset management business through favorable growth in assets under management. Results this year to-date exceed last year, boosted by a one-off income of EUR 7.0 million last year related to the acquisition of Vita. By contrast, there was a minor decline in the profitability of the reinsurance segment (due to major loss events in the third quarter) and in the life business in Slovenia (excluding Vita) and abroad.

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