The key targets for 2020 are:
- Growth in Slovenian non-life gross premiums written is planned at 3%, taking into account the expected slowdown in new vehicle sales. Life insurance GWP are expected to decrease by 9%, which reflects the large number of policies maturing in the Slovenian life business segment.
- Outside Slovenia, Sava Re expects insurance business to grow organically at rates exceeding the expected GDP growth rates. The Group's non-life and life insurers outside Slovenia are planning their GWP to grow by 6% and 15%, respectively. While non-life insurers will focus in particular on development and expansion of the existing sales network, diversification of their portfolios by means of new products, and strengthening of bancassurance as a sales channel, on the life insurance side, Sava Re's subsidiaries will focus in particular on reducing or abandoning guaranteed rates in 2020 in view of the low interest rates prevailing in the financial markets.
- Reinsurance operations expect GWP to grow by 8% in 2020. This will be achieved by growing the volume of business in new markets while maintaining portfolio diversification by both geography and partner.
- The Group's investment policy includes maintaining a high level of security of invested insurance contract assets, as well as ensuring high liquidity and risk diversification. Investment management in 2020 will be affected by the continued low interest rates, the expected return being of 1.3%. The investment portfolio structure will also remain relatively conservative in 2020, featuring a high share of bonds and other fixed-income investments and a high credit rating profile, with the share of equity securities and infrastructure projects increasing slightly.
Among the Group's priorities, digital transformation and an increased customer centric approach have a leading role. Thus, Group will be carrying out activities that will make it easier for its customers to buy and manage insurance policies and file claims, and it will also focus on its online presence and mobile applications, as well as on the adjustment of its communications and products to customer preferences.
As part of its IT transformation, the Group will complete the development of unified infrastructure supporting the common data warehouse in 2020, and it will start certain activities aimed at renovating its core IT systems, including replacements, upgrades and implementations of various IT solutions.
As regards acquisitions-based growth, while delivering efficient organic growth, the Group will continue with acquisition activities in its existing markets, but it will also seek growth opportunities elsewhere in the European Union insurance industry.