Sava Re: 2018 Solvency and Financial Condition Report

23 April 2019 — Cosmin CONCEATU
Sava Re published on April 2019 its Solvency and Financial Condition Report for 2018. Previous year figures showed an improved combined ratio, an increase in net result of EUR 33 million and a slight decrease in premiums total volume, due to changes in the underwriting strategy.


  • Premiums written: Sava Re wrote 1.0% less in premiums in 2018 compared to 2017, which was due to strict underwriting discipline and the related selective underwriting. Total premiums volume reached EUR 151.6 million in 2018 (EUR 153.2 million in 2017). The Company wrote the most premiums in Slovenia (EUR 58.2 million) and Asian markets (South Korea EUR 14.2 million, China EUR 8.3 million, Russia EUR 3.9 million), and the main classes of business remained proportional and non-proportional property reinsurance.
  • Combined ratio: The combined ratio improved by 5.6 percentage points as the result of a smaller incidence of large events compared to the previous year. Another positive impact on the result was a one-off effect from the positive resolution of a legal case in the amount of EUR 1.5 million.
  • Net investment: In 2018, net investment income relating to the investment portfolio totaled EUR 32.5 million, up EUR 1.7 million from 2017. Net investment income strengthened largely due to higher income relating to the investment portfolio.
  • Net result: The Company's net result for the year 2018 rose by 27.0%, reaching EUR 41.9 million (EUR 33.0 million in 2017).

Risk profile

  • The Company calculates its capital requirement in accordance with the Solvency II standard formula. The risk profile is dominated by market and non-life underwriting risk. To a lesser extent, Sava Re is also exposed to other types of risk: health underwriting risk, counterparty default risk and operational risk.
  • Apart from the above risks, which are captured by the standard formula, Sava Re is also exposed to liquidity risk, and additionally to various strategic risks as a result of complex internal and external environment.

Capital management

  • Solvency capital requirement (SCR): EUR 162.5 million (EUR 160.1 million)
  • Minimum capital requirement (MCR): EUR 40.6 million (EUR 40.0 million)
  • Solvency ratio: 293% (283% in 2017)
  • MCR ratio: 1,171% (1,113% in 2017)

About Sava Re

Sava Re is a public limited company, 17.7% owned by Slovenian Sovereign Holding. It is the largest reinsurance company domiciled in Central and Eastern Europe. The Company is also the controlling company of the Sava Re Group.

The insurance part of the Group is composed of seven insurers based in Slovenia and in the countries of the Adria region: the composite insurer Zavarovalnica Sava, the non-life insurers Sava Nezivotno Osiguranje (SRB), Sava Osiguruvanje (MKD), Illyria and Sava Osiguranje (MNE), and the two life insurers Sava Zivotno Osiguranje (SRB) and Illyria Life.

Sava Re is rated "A" by the rating agencies S&P's and AM Best. Currently

Source: 2018 Solvency and financial condition report of Sava Re d.d.

Share |