The Group's business volume, measured in terms of premiums written and income from other non-insurance services, amounted to EUR 260.2 million, showing strong growth of almost 10% year on year, despite the continuing difficult macroeconomic situation. This growth was mainly driven by the increase in non-life insurance premiums in the EU market (+14.2%) and the Group's reinsurance services (+12.1%). The Group adjusted its premium rates in line with inflation in its domestic and international reinsurance markets, but it also increased its volume of business through new customer acquisition and increased insurance sales. However, in the markets outside the EU, premium growth was even stronger in relative terms, mainly due to organic growth, both in non-life (+23.4%) and life (+16.2%). Life insurance premiums in the domestic market did not reach the volume of the first quarter of last year (-9.0%) due to the exceptionally high sales during that period.
The Group's net profit amounted to EUR 20.1 million and is significantly higher than in the first quarter of last year (+144.3%). This growth was partially driven by insurance revenue. Other factors include the reinsurance protection of major claims and the fact that the Group significantly adjusted its claims provisions for inflation for the first time in the first quarter of 2022. The higher profit was also the result of more favorable financial market conditions and higher levels of required yields this year, which led the Group to generate a better net investment income than in the first quarter of last year (EUR +7.1 million).
The first quarter of 2023 is an important milestone for the Group and the insurance industry as a whole, as the new accounting standards IFRS 17 and IFRS 9 came into force on 1 January 2023. The results for the first quarter released today are presented for the first time in accordance with the new methodologies.
The Group also designed bold projects and set out a roadmap to meet all its strategic goals in customer satisfaction, process modernization, sustainability, reengineering of key information systems and employee satisfaction. It has thus successfully entered its new five-year strategy period.
Further information on the Group's performance for the Q1 2023 is available in Sava Re's quarterly statement and presentation.