SAVA Re plans net profit up to EUR 33 million in 2017

14 February 2017 — Vlad BOLDIJAR
Slovenian SAVA Re Group announced that it is planning to write gross premiums of EUR 494 million in 2017, and to achieve a net profit of between EUR 31 and EUR 33 million as well as a return on equity of over 10%. At the same time, the target combined ratio (non-life and reinsurance business) for 2017 is 95%.

Growth has been planned primarily in non-Slovenian markets (4% growth for non-life business and 6% growth for life business): "The 2017 plans are significantly affected by the environment in which the Group operates. It is expected that investment income will continue to decline because of the low interest rates. International reinsurance markets are also challenging as reinsurance rates remain on a relatively low level, further eroding underwriting results. In Slovenia, actions have been taken to improve the profitability of the combined portfolio and to take advantage of synergistic effects, which is expected to improve underwriting results. Still only modest growth is planned for the Slovenian part of the portfolio. Minor growth in insurance premiums is also planned to improve the underwriting results of the portfolios outside Slovenia".

"The key direction for 2017 at the group level is client focus and accelerated enhancement of processes across the group to achieve this. The group will focus on organic growth in new reinsurance markets and markets outside Slovenia where it is present", the SAVA Re Group said in a press release.