SLOVENIA: Sava Re proposes dividend for shareholders

11 April 2019 — Marina MAGNAVAL
Slovenian Sava Re is going to pay a gross dividend of EUR 0.95 per share, EUR 14.7 million in total, or 34.23% of 2018 net profit of the Sava Re Group, the reinsurer said in an official statement.

The proposed dividend is 18.8% higher than the dividend paid in 2018. The proposed record date is June 13 and the proposed dividend payment date is June 14. According to the audited data of Sava Re, consolidated net profit increased 38.3% y-o-y to EUR 43 million in 2018.

"Based on the 10% dividend growth proposed in the dividend policy, the 2019 dividend would total EUR 0.88 per share; the proposal of the management and supervisory boards for a higher, EUR 0.95, dividend per share is supported by the fact that the group's 2018 net profit target has been exceeded," Sava Re explained.

According to the statement, Sava Re "continues to follow its dividend policy adopted in the strategic plan for the period 2017-2019. The Company's dividend policy provides for a 10% annual dividend growth, while the dividend payout must not exceed 40% of the Group's net profit for the year. The Company prepares its annual dividend proposal, taking into consideration the solvency position, required capitalization under rating agency models, the company risk and solvency assessment and new projects that will support the Group's long-term strategic goals and development."

Another important aspect of the Sava Re Group strategy is the Group's growth. In 2019, the Group is planning a 4.5% rise in income, as well as growth from the completed acquisitions in the Croatian insurance market and the Slovenian asset management market. Both organic and acquisitions-based growth engage additional capital, which improves capital utilization and the Group's profitability.

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