"Because of the expected rise to pre-pandemic levels in motor claim frequency combined with surging inflation, pushing up claim amounts as well as claims provisions, net profit - as anticipated - is 18.8% below the same period in 2021. It is also due to the negative effect of EUR 6.9 million from measurement of investments, mainly debt securities, at fair value through profit or loss. Compared to 2019 (the last year comparable in terms of claim frequency), profit increased by 23.4%, which demonstrates the Group's underlying strength, despite the current challenging financial and geopolitical environment", as the Slovene re/insurer informed in a statement.
The Group representatives also mentioned it remains well on track to meet its volume targets, as operating revenue of EUR 558.0 million reached 79.7% of the 2022 target. The largest contributions to above-target revenue growth came from reinsurance operations and non-life business sourced both in Slovenia and abroad. Operating revenue was up 1.7% year-on-year, with a notable 5.2% increase in gross premiums written.
The combined ratio of 91.9% also remained within the Group's target range - despite the weaker claims experience in the Slovenian non-life segment - thanks to better-than-planned revenue growth and a better-than-planned expense ratio.
In the first nine months of the year, the Group wrote EUR 608.3 million in GWP, up 5.2% y-o-y, further boosting the volume of business compared to the first six months of the year, when premium volume grew by 4.5%. Due to its size, the largest contributor to the year-on-year volume increase was the Slovenian non-life segment, which grew by 6.3%. The international non-life and life segments, however, also grew significantly, by 18.4% and 19.3%, respectively. The growth in gross non-life premiums (both in Slovenia and abroad) was mainly driven by the motor business, where more policies were sold and average premiums were higher. Gross premiums also strengthened in the reinsurance business, up 5.3%, with a full 13.3% increase in the non-proportional business.
"In the third quarter, the Sava Insurance Group continued to meet or exceed the targets of the current strategy period, which ends this year. The management board believes that the targets set for the year, as well as for the strategy period, will be met, subject to no additional materially adverse economic or catastrophic events. The expected results will thus provide a solid foundation to build on in the new strategy period, for which preparations are well underway".