"This decline of 10.4% versus the prior year's record result was expected, given the rising claims frequency as the impact of the pandemic subsided and drivers took back to the road, with certain additional negative impacts from claims inflation and major weather-related claims".
Sava Insurance representatives mentioned that the year 2022 was marked by rising geopolitical tensions and tightening global economic conditions. "This presented the Sava Insurance Group with new challenges. An advanced risk governance framework, timely action, capital strength and customer focus enabled the Sava Insurance Group to achieve virtually all the objectives planned for 2022, despite the challenging environment. Sava Re's capital strength and solid performance were again reaffirmed last year by the "A" credit ratings from S&P Global Ratings and AM Best".
In 2022, the Group increased operating revenue to EUR 753.6 million, 7.7% above target.
Gross premiums written rose by 6.1% to EUR 774.1 million. Premium growth in the non-life and reinsurance segments was even higher, partly as a result of inflation-adjusted price increases.
In the international non-life segment, premiums grew by a full 19.2%. The life segment also exceeded its planned premiums, but it did not reach the previous year's volume because of the unusually high sales in Slovenia in the prior year. Further, the Group experienced strong premium growth of 17.5% in the international life segment, driven by stronger bancassurance sales and sales through the Group's own network.
Net non-life claims incurred in Slovenia increased mainly due to the expected normalisation of claims frequency and claims inflation. The impact of these rising expenses was partially offset by the favourable development of older year claims provisions in the Slovenian portfolio and also in the freedom of services business. The rise in international non-life claims incurred was mainly driven by higher premium volume.
The combined ratio rose as expected because of the increase in claims, but at 90.7% it is still much better than planned. This was largely due to cost efficiency, as costs grew more slowly than premiums. The relatively small overall increase of 2.7% in claims incurred at the Group level mainly reflects developments in the life segment, which saw fewer policy maturities and policy surrenders in Slovenia.
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