Sava Insurance Group, 1Q2020: Operating revenues went up 16.2%

19 May 2020 — press.release
For the first quarter of 2020, Sava Insurance Group generated operating revenues in amount of EUR 149.0 million (+16.2% year-on-year) and a net profit of EUR 10.3 million (-5.6% y-o-y).

On 17 April 2020, the Sava Insurance Group posted a preliminary impact analysis of the pandemic, revealing that the Group remains in a strong position despite the new circumstances, allowing further smooth performance of its obligations.

By the end of August 2020, the Sava Insurance Group is planning to prepare an updated financial plan for the period 2020-2022, taking into account impacts associated with the Covid-19 outbreak on business projections, along with impacts of the NLB Vita acquisition, if completed by then.


Sava Insurance Group 1Q2020 preliminary figures, y-o-y changes

  • Operating revenues: EUR 149 million (+16.2%)
  • Gross written premiums: EUR 198 million (+15.1%), of which:
    • GWP Reinsurance: EUR 40 million (+23%)
    • GWP Non-life Slovenia: EUR 113 million (+17%)
    • GWP Life Slovenia: EUR 19 million (-3%)
    • GWP Non-life international: EUR 21 million (+11%)
    • GWP Life international: EUR 3 million (+30%)
    • Pension business: EUR 1 million (+22%)
  • Gross claims paid: EUR 113 million (+13.9%)
  • Net combined ratio: 93.3% (+0.3 pp.)
  • Net profit: EUR 10 million (-5.6%)


Gross written premiums reached at consolidated level the amount of EUR 198 million, 15.1% higher compared to the same period of prior year. The growth was mainly pushed by the reinsurance business (22.6%), the Slovenian non-life insurance business (16.7%) and the non-life insurance business from abroad (11.0%). This growth was also contributed by business written under the freedom of services regime, which the Slovenian non-life insurer generated in cooperation with various EU partners. In addition, it is due to a modified timing of premium accounting for a major client, as well as the acquisition of ERGO Osiguranje and ERGO Zivotno Osiguranje in Croatia, which had not been part of the consolidated accounts in the first quarter of 2019.

Group operating revenue increased by 16.2% in the first quarter. In addition to the aforementioned premium growth, this was also supported by the acquisition of the fund management company Sava Infond, which had not been included in the first quarter 2019 accounts.

The Sava Insurance Group made a net profit of EUR 10.3 million in the first quarter of 2019, a 5.6% year-on-year decline and 22.9% of the 2020 target. The moderate decline in the Group's net profit was chiefly due to the lower result of the reinsurance segment owing to increased net claims incurred, reflecting business growth and a rise in the number of claims reported. However, profit was also lower because of a more modest investment result, partly reflecting the adverse developments in financial markets related to the early effects of Covid-19 and partly expenses for subordinated debt.

Return on equity was 10.6%. Operating revenue of the Sava Insurance Group reached 24.4% of the full-year 2020 target, and the net profit 22.9% of the target.

The net expense ratio improved by 1.5 p.p. year on year, mainly because revenues grew faster than expenses given the relatively fixed nature of certain expenses, but the improvement is also the result of measures to contain costs taken by the Group to ease the negative financial impact of Covid-19 on operations.


More financial information about Sava Insurance Group can be found at www.sava-re.si/en


Source: sava-re.si

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