Annual Report (ESEF) • Apr 8, 2024
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Download Source FileTo the best of our knowledge and in accordance with the International Financial Reporting Standards, Slovenian laws, the Solvency II Directive, and the international sustainability reporting standards of the Global Reporting Initiative (GRI), the consolidated and separate financial statements give a true and fair representation of the financial position and profit or loss of the Sava Insurance Group and Sava Re d.d.1 The business report provides a fair view of the development and performance of the Group and the Company, and their financial position, including a description of the principal risks to which the consolidated companies are exposed.
Marko Jazbec, Chairman of the Management Board
Polona Pirš Zupančič, Member of the Management Board
Peter Skvarča, Member of the Management Board
David Benedek, Member of the Management Board
Ljubljana, 15 March 2024
1 GRI 2-2, 2-3.
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Business volume | 910,113,382 | 795,535,596 | 114,577,786 | 114.4 |
| Insurance revenue | 697,562,811 | 608,987,793 | 88,575,018 | 114.5 |
| Insurance service result | 83,477,762 | 76,073,417 | 7,404,345 | 109.7 |
| Finance result | 18,097,793 | 1,511,878 | 16,585,915 | - |
| Net profit | 64,657,172 | 46,923,441 | 17,733,731 | 137.8 |
| Index | Equity | Net contractual service margin (CSM) | Investment portfolio position | Total assets | Assets under management |
|---|---|---|---|---|---|
| 31 December 2023 | 585,663,613 | 149,351,142 | 1,503,282,095 | 2,568,546,136 | 2,411,800,065 |
| 31 December 2022 | 531,463,677 | 129,365,490 | 1,415,231,399 | 2,312,140,248 | 2,006,528,479 |
| Change | 54,199,936 | 19,985,652 | 88,050,696 | 256,405,888 | 405,271,586 |
| Index | 110.2 | 115.4 | 106.2 | 111.1 | 120.2 |
| Combined ratio | Return on equity (ROE) | Return on investment portfolio | Solvency ratio |
|---|---|---|---|
| 93.1% | 10.8% | 2.1% | 188%–194% |
| 92.6% | 8.3% | 0.6% | 183% |
| +0.5 p.p. | +2.5 p.p. | +1.5 p.p. | - |
| - | - | - | - |
For definitions and calculations, please refer to the appended glossary.
The key figures for 2023 with comparative data for 2022 have been prepared in accordance with IFRS 17 and IFRS 9, which entered into force on 1 January 2023. The methodologies and estimated impact of the transition to the new standards are presented in the notes to the financial statement of the annual report.
Shareholders and share trading..................................................................................20
5. 1. Responsibility to investors.....................................................................................................24
Report of the supervisory board.................................................................................26
6. Corporate governance statement...............................................................................40
7. 1. Corporate governance policy.................................................................................................40
2. Statement of compliance with the Slovenian Corporate Governance Code for Listed Companies.............................................................................................................................40
3. Governing bodies of Sava Re..................................................................................................42
4. Internal control and risk management systems relating to financial reporting.....................54
5. External audit.........................................................................................................................55
6. Disclosures in accordance with Article 70(6) of the Companies Act......................................55
7. Governance of Sava Insurance Group members....................................................................57
Mission, vision, strategic focus and goals...................................................................58
8. 1. Our purpose...........................................................................................................................58
2. Strategic focus of the Sava Insurance Group.........................................................................59
3. Business plan of the Sava Insurance Group for 2024.............................................................60
4. Goals achieved in 2023..........................................................................................................61
Business environment................................................................................................64
9. Review of operations of the Sava Insurance Group and Sava Re.................................70
Dear Shareholders, Business Partners and Employees,
The financial year 2023 was another trying year that brought completely new challenges for the Sava Insurance Group. The war in Ukraine led to a surge in inflation. In addition, Slovenia and other countries in which the Group operates were hit by severe storms and floods during the summer, resulting in significant damage to property. We focused our efforts on fast-track claims handling to fulfil our “Never Alone” promise, offering policyholders the necessary support and assistance. First and foremost, we stood by our customers on the ground by simplifying the reporting and claims handling processes. Then, we provided an extra day of volunteering leave and financial support to the worst-affected areas. The loss events resulted in claims totalling EUR 88 million, with a lower impact on the Group’s result due to adequate reinsurance protection.
Despite the significant impact of these claims, particularly on Zavarovalnica Sava, the Group exceeded its profit guidance. The Group’s other operating segments performed better than planned. SavaRe’s business in international reinsurance markets contributed significantly to the above-target performance. The market growth in reinsurance prices over the last few years, the restructuring of the reinsurance portfolio to improve profitability and the absence of major claims were the driving forces behind the strong outperformance of the profit target. In addition, the investment result played a significant role in exceeding the plan. Due to rising interest rates, the Group’s investment return was 2.1%, 0.6 percentage points higher than planned. The Group’s companies that manage financial assets also closed 2023 well ahead of target. This performance was driven by both capital market movements and increased inflows into the funds. All this helped to mitigate the negative impact of the storm and flood losses.
The Group achieved strong organic growth across all segments and markets, bringing our business volume to EUR 910 million, which is almost a 15% increase year on year. I am confident that we will exceed the EUR 1 billion threshold by the end of the strategy period. We are pleased that our Group companies are vastly improving their market position and expanding their product range and sales channels. Our strong organic growth is supporting us to operate more cost-effectively. The Group’s revenue growth also demonstrates its ability to respond to external circumstances by adjusting pricing, thus ensuring stable performance.
Inthe non-life business, we furtherdeveloped our product range in line with theneeds andwishes of ourcustomers. We offered products with strong sustainabilitycredentials, products targetedat specific policyholder segments, and productspromoting online sales and bancassurance. Inthe life andpension business, our focus over thepast year was to expand the liferisk insuranceecosystem by adding more customer services, developingadditional health coverage options,and upgrading unit-linked life insurance and bancassurance products.
In2023, an independent institution verified our carbon footprint calculation for the previousyear. This calculation providesthe basis for setting more precise milestones on our way towards ourstrategic target of reducing our carbonfootprint by 55% in scope 1 and2 emissions by 2030.An important measure taken was relocating thehead offices of six Slovenian companies andone Macedonianinsurance company to new, more energy-efficientpremises, whichhas already helped to reduce our carbon footprint for 2023. Last year, we began systematically collectingand processing data across our value chains (insurance portfolio, investment portfolio andsuppliers) to identify the necessary actionsto achieve our sustainabilitygoals.
In terms oforganisational structure, sustainability was being progressively integrated into the Group companies’ operations in 2023 and is now increasingly taken into account in day-to-day activities.Our employees are actively developing aculture of sustainability to set anexample for thewider community.This involves organisinga number of volunteer activities as part of the Heartfor theWorld initiative. In2023, our employees dedicatedmore than 5,000 hoursto corporate volunteerism.
Another important milestone in 2023 was thesuccessful transition to thenew IFRS 17 andIFRS 9 accounting standards, which required asubstantial effort from ouremployees and involved restructuringsome IT systems, processes andorganisation over the past few years.I believe the transition has been successful, andI am confident that the data collected at the end ofthe project will help us better monitor our business and respond more quickly to emerging risks.
To sum up, 2023 posed aparticular challenge for the Group due to the unprecedentedscale of the summer floods that affecteda considerable part ofSlovenia. I am proudthat the Group demonstrated these three qualities in such circumstances:
Manythanks to all our colleagues for their contributions andefforts in 2023. We have shown that by working together, we can overcome major challenges and accomplish ambitious goals.
Marko Jazbec
Chairman of the Management Board of Sava Re d.d.
| Company name | Sava Re d.d. |
|---|---|
| Business address | Dunajska 56, 1000 Ljubljana, Slovenia |
| Telephone (switchboard) | +386 1 47 50 200 |
| Facsimile | +386 1 47 50 264 |
| info\@sava-re.si | |
| Website | www.sava-re.si |
| ID number | 5063825 |
| Tax identification number | SI17986141 |
| LEI code | 549300P6F1BDSFSW5T72 |
| Share capital | EUR 71,856,376 |
| Shares | 17,219,662 no-par-value shares |
Date of entry into court register: 10 December 1990, Ljubljana District Court
Deloitte Revizija d.o.o.
Dunajska Cesta 165
1000 Ljubljana, Slovenia
– together 31.6% (no-par-value shares: 5,436,319)
| S\&P Global Ratings | A /stable/, September 2023 |
|---|---|
| AM Best | A /stable/, September 2023 |
The Company has no branches.
In the summer of 2023, Slovenia and certain other countries in which the Group is present were hit by a wave of storms and floods that caused significant property damage. The gross claims resulting from these events amounted to EUR 88.3 million. Taking into account reinsurance protection, the net impact of these events on the Group’s result was EUR 27.4 million.
Changes in the composition of the management and supervisory boards are described in section 5.3 “Governing bodies of Sava Re”.
“A” ratings affirmed with stable outlook
Sava Re is rated by two rating agencies, S&P Global Ratings and AM Best.
| Agency | Rating | Outlook | Latest review |
|---|---|---|---|
| S\&P Global Ratings | A | stable | September 2023: existing rating affirmed |
| AM Best | A | stable | September 2023: existing rating affirmed |
The Group is one of the leading insurance groups based in the Adriatic region, with a presence in six countries of the region. Pozavarovalnica Sava d.d. (Sava Re) is the parent company of the Sava Insurance Group and an insurance company headquartered in Ljubljana, Slovenia. The Group operates in the insurance and asset management sectors, and also engages in secondary activities. It continuously improves the quality and integrity of the services it provides:
Composition of the Sava Insurance Group as at 31 December 2023
As at 31 December 2023, the Sava Insurance Group had the following members:
| Sava Re | Zavarovalnica Sava (SVN) | Sava Neživotno Osiguranje (SRB) | Illyria (RKS) | |
|---|---|---|---|---|
| Registered office | Dunajska Cesta 56, 1001 Ljubljana, Slovenia | Ulica Eve Lovše 7, 2000 Maribor, Slovenia | Bulevar Vojvode Mišića 51, 11040 Belgrade, Serbia | Sheshi Nëna Terezë 33, 10000 Pristina, Kosovo |
| ID number | 5063825000 | 5063400000 | 17407813 | 810483769 |
| Main activity | reinsurance | insurance | non-life insurance | non-life insurance |
| Share capital (EUR) | 71,856,376 | 68,417,377 | 6,314,464 |
Book value of combined equity interest of all Group members (EUR)
68,417,377
6,314,464
7,228,040
% equity share / voting rights held by Group members
Sava Re: 100.0%
Sava Re: 100.0%
Sava Re: 100.0%
Marko Jazbec (chair), Polona Pirš Zupančič, Peter Skvarča, David Benedek
Jošt Dolničar (chair), Uroš Lorenčič, Primož Močivnik, Robert Ciglarič
Bojan Mijailović (chair), Aleksandar Ašanin
Shpend Balija
Davor Ivan Gjivoje Jr (chair), Keith William Morris, Klemen Babnik, Matej Gomboši, Edita Rituper, Blaž Garbajs
Marko Jazbec (chair), Pavel Gojkovič, Polona Pirš Zupančič, Peter Skvarča, Aleš Perko, Branko Beranič
Peter Skvarča (chair), Nebojša Šćekić, Josif Jusković
Marko Jazbec (chair), Rok Moljk, Andreja Rahne, Milan Viršek, Ilirijana Dželadini
| Registered office | Železnička 41, Opština Centar, PF133, 1000 Skopje, North Macedonia |
|---|---|
| Ulica Svetlane Kane Radević br. 1, 81000 Podgorica, Montenegro | |
| Sheshi Nëna Terezë 33, 10000 Pristina, Kosovo | |
| Bulevar Vojvode Mišića 51, 11040 Belgrade, Serbia |
| ID number | 4778529 |
|---|---|
| 02303388 | |
| 810793837 | |
| 20482443 |
| Main activity | non-life insurance |
|---|---|
| non-life insurance | |
| life insurance | |
| life insurance |
| Share capital (EUR) | 3,820,077 |
|---|---|
| 4,033,303 | |
| 3,285,893 | |
| 4,326,664 |
| Book value of combined equity interest of all Group members (EUR) | 3,585,524 |
|---|---|
| 4,033,303 | |
| 3,285,893 | |
| 4,326,664 |
| % equity share / voting rights held by Group members | Sava Re: 93.86% |
|---|---|
| Sava Re: 100.0% | |
| Sava Re: 100.0% | |
| Sava Re: 100.0% |
managing director: Melita Gugulovska, executive director: Kristian Leskov
non-executive directors of the company: Rok Moljk (chair), Peter Skvarča, Milan Viršek, Sašo Tonevski, Nenad Jovanović
executive director: Nebojša Šćekić non-executive directors of the company: Marko Jazbec (chair), Milan Viršek, Zvonko Peković
Albin Podvorica deputy managing director: Mehmeti Fisnik
Miloš Brusin (chair), Ana Bojanić
Marko Jazbec (chair), Andreja Rahne, Rok Moljk, Milan Viršek, Ilirijana Dželadini
| ID number | 02806380 | 2154170000 | 02699893 | 7005350 |
|---|---|---|---|---|
| Main activity | technical testing and analysis | insurance agency | insurance agency | technical testing and analysis |
| Share capital (EUR) | 485,000 | 327,263 | 10,000 | 199,821 |
| Book value of combined equity interest of all Group members (EUR) | 485,000 | 327,263 | 10,000 | 199,821 |
| % equity share / voting rights held by Group members | Sava Osiguranje (MNE): 100.0% | Zavarovalnica Sava: 100.0% | Sava Osiguranje (MNE): 100.0% | Sava Osiguruvanje (MKD): 100.0% |
| Governing bodies | executive director | managing director | executive director | managing director |
| Siniša Mićunović | Aljaž Kos | Snežana Milović | Aleksandar Mihajloski |
| Registered office | Ulica Eve Lovše 7, 2000 Maribor, Slovenia | Ulica Eve Lovše 7, 2000 Maribor, Slovenia | Majka Tereza 1, 1000 Skopje, North Macedonia | Trg Republike 3, 1000 Ljubljana, Slovenia |
|---|---|---|---|---|
| ID number | 1550411000 | 5946948000 | 5989434 | 1834665000 |
| Main activity | pension fund | provision of assistance services | fund management activities | life insurance |
| Share capital (EUR) | 6,301,109 | 8,902 | 2,110,791 | 7,043,900 |
| Book value of combined equity interest of all Group members (EUR) | 6,301,109 | 7,789 | 2,110,791 | 7,043,900 |
| % equity share / voting rights held by Group members | Sava Re: 100.0% | Sava Re: 87.5% | Sava Re: 100.0% | Sava Re: 100.0% |
| Governing bodies | management board | managing director | management board | management board |
| Andrej Plos (chair), Igor Pšunder | Edvard Hojnik | Snežana Stankovič (chair), Petar Taleski, Tatjana Bojkovska | Barbara Smolnikar (chair), Irena Prelog, Tine Pust | |
| supervisory board | holder of procuration | supervisory board | supervisory board | |
| David Benedek (chair), Rok Moljk, Hermina Kastelec, Pavel Gojkovič, Irena Šela, Tomaž Šalamon, Uroš Krajnc | Aleksandra Tkalčič | Pavel Gojkovič (chair), Rok Moljk, Peter Skvarča, Erol Hasan | David Benedek (chair), Pavel Gojkovič, Andreja Rahne, Jure Košir |
| Registered office | Pod Skalo 4, 4260 Bled, Slovenia |
|---|---|
| Ul. Dimche Mirchev 20, Opština Centar, 1000 Skopje, North Macedonia | |
| Ulica Eve Lovše 7, 2000 Maribor, Slovenia | |
| Bulevar Kralja Aleksandra 17, 11000 Belgrade, Serbia | |
| ID number | 5690366000 |
| 7690088 | |
| 5822416000 | |
| 17077295 | |
| Main activity | hospital activities |
| non-specialised wholesale trade | |
| fund management activities | |
| computer programming | |
| Share capital (EUR) | 379,123 |
| 1,320,026 | |
| 1,460,524 | |
| 1,129 | |
| Book value of combined equity interest of all Group members (EUR) | 189,562 |
| 1,056,021 | |
| 1,460,524 | |
| 1,129 | |
| % equity share / voting rights held by Group members | Sava Re: 40.1%/50.0% |
| Sava Re: 80% | |
| Sava Re: 84.00%/84.85% | |
| Sava Re: 100% | |
| Zavarovalnica Sava: 15.00%/15.15% | |
| Governing bodies | managing director |
| managing director | |
| management board | |
| managing director | |
| Zvonko Novina, Robert Cugelj | |
| Iskra Kostova, Suzana Jovanova | |
| Jožica Palčič (chair), Samo Stonič, Jure Dubravica | |
| Ivana Ivetić | |
| supervisory board | supervisory board |
| supervisory board | |
| Blaž Jakič (chair), David Benedek (deputy chair), Jaka Kirn, Milan Marinič, Polonca Jug Mauko, Matej Narat | |
| David Benedek (chair), Zvonko Novina, Snežana Stanković, Simon Trpeski, Nebojša Mojsoski | |
| David Benedek (chair), Polona Pirš Zupančič, Jure Košir, Uroš Lorenčič |
| Registered office | Braće Jerkovića 108A, Belgrade, Serbia |
|---|---|
| ID number | 21822302 |
| Main activity | technical testing and analysis |
| Share capital (EUR) | 100,000 |
| Book value of combined equity interest of all Group members (EUR) | 100,000 |
| % equity share / voting rights held by Group members | Sava Car (MNE): 100% |
| Governing bodies | managing director |
| Nemanja Parapid |
In 2023, Sava Re established Vita S Holding (MKD), a healthcare company based in North Macedonia, and acquired ASP (SRB), a Serbian company providing development and maintenance services for core IT systems. In 2023, Sava Re sold G2I (GBR) and the Croatian company SO Poslovno Savjetovanje ceased operations.
Sava Re’s share price rose by 25.0% from EUR 22.4 to EUR 28.0 in 2023. During this period, it reached a high of EUR 28.0 and a low of EUR 22.1. In 2023, the average price was EUR 24.6. Considering the dividend payout of EUR 1.60 per share (representing a dividend yield of 6.5%), the return on the share in 2023 was 32.1%.
The SXIP (STOXX Europe 600 Insurance) also rose in 2023, by 8.8%. The Ljubljana Stock Exchange index (SBITOP) also increased over the period. It gained 19.8%.
| 31 December 2023 | 31 December 2022 | |
|---|---|---|
| Share capital (EUR) | 71,856,376 | 71,856,376 |
| Number of shares | 17,219,662 | 17,219,662 |
| Ticker symbol | POSR | POSR |
| Number of shareholders | 4,376 | 4,316 |
| Type of share | ordinary | |
| Listing | Ljubljana Stock Exchange, prime market | |
| Number of treasury shares | 1,721,966 | 1,721,966 |
| Consolidated book value per share (EUR) | 37.79 | 34.29 |
| Market capitalisation, closing rate at (EUR) | 433,935,488 | 347,148,390 |
| Metric | Value (EUR) |
|---|---|
| Consolidated earnings per share | 4.16 |
| Share price at end of period | 28.00 |
| Average share price during reporting period | 24.56 |
| Period low | 22.10 |
| Period high | 28.00 |
| Turnover during the period | 15,801,226 |
| Average daily trade volume | 66,114 |
| Type of investor | Percentage |
|---|---|
| Domestic investors | 17.9% |
| International investors | |
| Insurance and pension companies |
| Shareholder | Number of shares | % of share capital | % voting rights |
|---|---|---|---|
| 1. InterCapital Securities Ltd. – fiduciary account | 3,295,534 | 19.1% | 21.3% |
| 2. Slovenian Sovereign Holding | 3,043,883 | 17.7% | 19.6% |
| 3. Republic of Slovenia | 2,392,436 | 13.9% | 15.4% |
| 4. European Bank for Reconstruction and Development (EBRD) | 1,071,429 | 6.2% | 6.9% |
| 5. Modra Zavarovalnica d.d. | 714,285 | 4.1% | 4.6% |
| 6. OTP Banka d.d. – fiduciary account | 434,529 | 2.5% | 2.8% |
| 7. Hrvatska Poštanska Banka – fiduciary account | 380,190 | 2.2% | 2.5% |
| 8. Guaranteed civil servants’ sub-fund | 320,346 | 1.9% | 2.1% |
| 9. Kapitalska Družba d.d. – SODPZ | 238,109 | 1.4% | 1.5% |
| 10. Modri Zajamčeni Podsklad (guaranteed sub-fund) | 168,150 | 1.0% | 1.1% |
| Total | 12,058,891 | 70.0% | 77.8% |
Sava Re d.d., treasury shares*: 1,721,966
10.0%
-
Treasury shares carry no voting rights.
Pursuant to Article 235a of the Slovenian Companies Act (ZGD-1), Sava Restarted the process of identifying shareholders who are registered with intermediaries as holders of shares and who are not themselves intermediaries (ultimate shareholders). The process was last carried out on 2 October 2023. According to the information received, on that date, Croatia Osiguranje d.d. held 2,439,852 POSR shares, and Adris Grupa d.d. held 838,197 POSR shares.
In 2023, the combined equity share of the ten largest shareholders increased from 67.9% to 70.0% and their share of voting rights from 75.5% to 77.8%. As at 31 December 2023, the top four largest shareholders of Sava Re exceeded the 5% threshold (qualifying holding under Article 77 of the Slovenian Takeover Act, ZPre-1).
In 2023, the chairman of the management board of Sava Re, Marko Jazbec, increased his holding of Sava Re shares by 500 to 12,000 shares. In 2023, purchases were also made by management board member Polona Pirš Zupančič, who acquired 570 shares and now holds 4,318 shares, and management board member David Benedek, who acquired 400 shares and now holds 1,200 shares. At the end of 2023, members of the management and supervisory boards together held 18,718 shares, representing 0.11% of the share capital.
| Number of shares | % of share capital | ||
|---|---|---|---|
| Marko Jazbec | 12,000 | 0.070% | |
| Polona Pirš Zupančič | 4,318 | 0.025% | |
| Peter Skvarča | 1,200 | 0.007% | |
| David Benedek | 1,200 | 0.007% | |
| Total management board | 18,718 | 0.109% | |
| Total management and supervisory boards | 18,718 | 0.109% |
All Sava Re shares are ordinary registered shares with no par value; all were issued in book-entry form and are of the same class.
Source: Central securities register KDD d.d.
The shares confer the following rights on their holders:
Pursuant to the Sava Re articles of association and the applicable legislation, current Sava Re shareholders also hold pre-emptive rights entitling them to take up shares in proportion to their existing shareholding in any future stock offering; their pre-emptive rights can only be excluded under a resolution to increase share capital adopted by the general meeting by a majority of at least three quarters of the share capital represented.
All Sava Re shares are freely transferable.
Sava Re has issued no securities carrying special control rights.
In line with the authorisation granted at the 28th general meeting of shareholders (held on 23 April 2014), the Company started repurchasing its shares in July 2014. The authorisation to acquire treasury shares was valid for three years from the date of the general meeting resolution. The authorisation was valid for the acquisition of up to 1,721,966 treasury shares of the Company, representing 10% of the Company’s share capital. The Company initially acquired its treasury shares only on the regulated market for financial instruments. However, after the announcement of the share-repurchase programme in November 2014, the Company repurchased its treasury shares both on and off the regulated market for financial instruments, in line with the authorisation given to the management board by the general meeting. The management board’s most recent repurchase of treasury shares to fill the quota was performed on 11 April 2016.
From 1 January 2023 to 31 December 2023, Sava Re did not buy back or sell any treasury shares. The total number of treasury shares as at 31 December 2023 was 1,721,966, representing 10% less one share of all issued shares. The Company’s management board does not have a new general meeting authorisation to purchase treasury shares.
At the 39th general meeting of shareholders held on 5 June 2023, the shareholders adopted the proposal of the management and supervisory boards to use EUR 24,796,313.60 of the distributable profits to pay a dividend of EUR 1.60 per share. The dividend was paid on 21 June 2023 to shareholders registered in the share register on 20 June 2023.
| EUR, except percentages | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|
| Amount of dividend payment | 12,398,157 | 14,722,811 | 0 | 13,173,042 | 23,246,544 | 24,796,314 |
| Dividend/share | 0.80 | 0.95 | 0.00 | 0.85 | 1.50 | 1.60 |
| Dividend yield | 4.8% | 5.6% | - | 3.4% | 5.9% |
The Company had no contingent capital as at 31 December 2023.
SavaRe’s investors (shareholders) and analysts are important stakeholders, with whom Sava Re maintains transparent, professional and comprehensive relationships.
As a Ljubljana Stock Exchange first listing company, Sava Re respects the principle of equal treatment and informing of all members of the public. Sava Re communications follow recommendations for uniform information to all shareholders, and through public announcements Sava Re enables simultaneous and transparent information to be provided in line with the financial calendar. In this way, the Company builds confidence among shareholders and potential investors in the POSR share. Key information is published in accordance with the financial calendar on the Company’s website and via the Ljubljana Stock Exchange SEOnet system. In 2023, Sava Re issued 50 public announcements in both the Slovenian and English language.
Sava Re communicates in compliance with the Slovenian Financial Instruments Market Act (ZTFI-1), the Companies Act (ZGD-1), the aforementioned recommendations of the Ljubljana Stock Exchange for listed companies, the Corporate Governance Code for Listed Companies, the rules of procedure of the supervisory board and the Company’s internal communication rules.
The Company aims to set up an open communication channel with investors. It seeks to raise awareness of the real value of the Sava Re and Sava Insurance Group brand and, consequently, of everything that investing in POSR shares entails. In 2023, Sava Re continued its efforts to improve the liquidity of the POSR share. Responsibility towards investors is reflected in cooperation and building a two-way relationship through various communication tools.
In 2023, Sava Re reached out to investors through investor and analyst conferences, webcasts organised by the Ljubljana Stock Exchange, a press conference on the occasion of the announcement of unaudited results, a letter to shareholders, an invitation to the general meeting of shareholders, an email newsletter and through similar means. It also sponsored the Ljubljana Stock Exchange’s capital market development and financial literacy project.
Sava Re also uses its official website www.sava-re.si/en-si/, in particular the Investors subpage, to provide timely and uniform information to investors, shareholders and other members of the financial community. The subpage contains all the essential information on the POSR share price development, key indicators, dividends, financial reports, analyses and a financial calendar. A calendar of past investment conferences is also available on the website, together with the material presented at each event. Also presented are the events Sava Re will attend in the coming year.
Current year dividend distributions from distributable profits of the previous year. The dividend yield was calculated as the ratio of the dividend per share to the rolling average share price in the 12-month period.
Investors, shareholders and analysts can contact Sava Re’s office of the management board and of compliance by phone at +386 1 47 50 200 and by email at investor relations [email protected].
The supervisory board of Sava Re d.d. (the Company or Sava Re) has prepared the following report in accordance with Article 282 of the Slovenian Companies Act (ZGD-1).
In 2023, the supervisory board monitored the Company’s operations and oversaw its management in a responsible manner. It periodically examined reports on various and select aspects of the business, passed appropriate resolutions, and monitored their implementation. Individual issues were addressed in more detail by the relevant supervisory board committees, and, on the basis of the supervisory board committee findings, the supervisory board also adopted appropriate resolutions and recommendations.
The supervisory board acted within the framework of the powers and responsibilities conferred upon it by legal and regulatory provisions, the Slovenian Corporate Governance Code for Listed Companies, the Company’s articles of association, and its rules of procedure.
The composition of the supervisory board changed in 2023. The term of office of Andrej Gorazd Kunstek and Edita Rituper, members of the supervisory board, employee representatives, expired on 12 June 2023. The works council reappointed Edita Rituper for a four-year term of office, and Blaž Garbajs was appointed as the second employee representative, his first term of office on the supervisory board. Both the appointed members began their new terms of office on 13 June 2023.
In 2023, the supervisory board comprised the following members: Davor Ivan Gjivoje Jr (Chairman), Keith William Morris (Deputy Chairman), Klemen Babnik, Matej Gomboši, Andrej Gorazd Kunstek (until 12 June 2023), Edita Rituper and Blaž Garbajs (from 13 June 2023).
The size and composition of the supervisory board allowed for effective discussion and the adoption of sound resolutions based on the broad range of expertise and experience provided by its members.
In its work and decision-making, the supervisory board is guided by the goals of the Company and the Sava Insurance Group as a whole. During sessions, the members expressed their opinions and positions and sought to reconcile any differences.
The supervisory board notes that the reports prepared by the management board for the supervisory board’s own use, and that of its committees, were appropriate for a careful examination of issues, and that they complied with both the relevant laws and internal regulations. Session materials were provided in a timely manner, allowing the members sufficient time to prepare themselves for the consideration of agenda items. The Company’s professional staff assisted in the conduct of the sessions and organised other supporting activities.
The supervisory board held ten sessions during 2023, one of which was held by correspondence. All members attended all sessions convened during their term of office. Most of the sessions were held at the Company’s head office. The number/intensity of sessions in 2023 were driven by the transition to IFRS 17, as well as by the strategically important development of the Company’s next five-year plan.
The members of the management board and the secretary of the supervisory board also participated in the discussions, whereas other professional staff assisted in certain agenda items. During the year, the supervisory board discussed select and relevant aspects of the operations and activities of the Company and the Sava Insurance Group within its powers under Slovenian law and the Company’s articles of association.
In late 2023, the supervisory board considered and approved the Business Plan of the Sava Insurance Group and Sava Re d.d. for 2024.
The supervisory board reviewed the unaudited financial statements of the Group and the Company for 2022, and it adopted the audited annual report of the Group and the Company for 2022, including the auditor’s report and opinion on the 2022 annual report, and the supervisory board’s own report on its activities in 2022.
The supervisory board also periodically reviewed other select financial reports in 2023, in particular the statements of results of the Sava Insurance Group with the financial statements of Sava Re d.d. for January–March 2023 and January–September 2023, and the unaudited financial report for January–June 2023.
The supervisory board monitored asset management periodically and as part of its review of the annual report and interim financial reports of the Company and the Group.
The supervisory board was informed of the Company’s reinsurance programme for the current year. Throughout 2023, the supervisory board was regularly updated by the management board on major loss events in the domestic and global markets, and on potential claims that could have a material impact on the Company. Following the floods in Slovenia (and the wider region) in August, the supervisory board took note of the report on the reinsurance protection covering the Group and non-Group portfolio.
In addition to overseeing the operations of Sava Re as the parent company of the Sava Insurance Group, the supervisory board actively monitored the performance of the Group’s subsidiaries to the extent permitted by law.
The supervisory board monitored risk management periodically and as part of its review of the annual report and interim financial reports of the Company and the Group. It took note of the risk report for the last quarter of 2022 and the risk reports for the first, second and third quarters of 2023. In March, it took note of the Own Risk and Solvency Assessment (ORSA) Report of Sava Re d.d. and the Sava Insurance Group for 2023. The report covered select and relevant information on the own risk and solvency assessment of Sava Re d.d. (the parent company) and the Sava Insurance Group.
At the end of 2023, the supervisory board approved the Risk Strategy of the Sava Insurance Group for 2023–2027.
Following the surrender of authorisation of the holder of both the actuarial function at the level of Sava Re and the non-life actuarial function at the level of the Sava Insurance Group, the supervisory board gave its consent to the management board in May 2023 to grant mandates to two new actuarial function holders, namely the holder of the non-life actuarial function at the level of the Sava Insurance Group and the holder of the actuarial function at the level of Sava Re.
In 2023, the supervisory board of Sava Re took note of the annual report of the compliance function holder for 2022 and his annual work plan for 2023. It also took note of the compliance function holder’s half-yearly report for the period from 1 January to 30 June 2023.
In 2023, the supervisory board oversaw the activities of the Company’s internal audit department in accordance with its statutory powers. It also reviewed the internal audit report for the period from 31 October to 31 December 2022 and the annual report on internal auditing for 2022, including a quality assurance and improvement programme of the Company’s internal audit department, and drew up an opinion on the annual report, which was presented to the Company’s general meeting of shareholders. It also considered quarterly internal audit reports for the periods ending on 31 March 2023, 30 June 2023 and 30 September 2023. In addition, it monitored the quarterly reports of the internal audit department on internal auditing of the Sava Insurance Group (Group Internal Audit). All reports prepared by the Company’s internal audit department were presented by the head of the department.
The supervisory board is of the opinion that the internal audit reports are independent and objective and that the internal auditor’s recommendations and findings have been taken into account by the management board. It notes that the internal audit’s reviews, based on their available resources, have not revealed any significant irregularities in the Company’s operations. The supervisory board also notes that the internal audit department continuously monitors the development of the internal audit departments of Group subsidiaries, providing them with appropriate support. In addition, it also monitors the operations of these companies and has not detected any major irregularities.
At the end of 2023, the supervisory board considered and approved the annual work plan of the internal audit department for 2024.
In accordance with the International Standards on Internal Auditing, the supervisory board approved the proposed bonus for the head of the internal audit department relating to her individual performance in 2022.
The supervisory board took note of the joint statement of all key function holders of the Group and the Company for 2022, including the opinion that all key risk areas were effectively managed and their functions were aligned to ensure ample coverage of the risks to which the Company and the Group were exposed.
In 2023, the supervisory board also took note of the update on the periodic review of Solvency II policies, discussing individual policies and giving its consent to the proposed amendments.
In 2023, the supervisory board considered the management board’s regular report on succession planning and approved the Policy on Human Resource Development and Succession Planning of the Sava Insurance Group.
With the expiry of his term of office on the supervisory board, Andrej Gorazd Kunstek also concluded his term of office on two supervisory board committees. To replace Mr. Kunstek’s positions, the supervisory board appointed Edita Rituper as a new member of the nominations and remuneration committee and Blaž Garbajs as a new member of the audit committee. Both took up their positions on the supervisory board committees on 13 June 2023. At the end of December, the supervisory board also appointed Blaž Garbajs as an additional member of the nominations and remuneration committee.
In 2023, the supervisory board adopted a resolution on the payment of variable remuneration to the members of the management board for business and individual performance in 2022, in accordance with the internal methodology for determining the variable remuneration of the management board members.
In March, the supervisory board adopted amendments to the methodology for determining the variable pay of a management board member, effective for 2023. In December, it reviewed the methodology again and adopted amendments with effect from 2024.
In accordance with the Slovenian Companies Act, in 2023 the management and supervisory boards submitted to the Sava Re general meeting of shareholders the Remuneration Policy for Members of Management and Supervisory Bodies of Sava Re d.d. and the Directors’ Remuneration Report of Sava Re d.d. for 2022. The general meeting approved the 2022 directors’ remuneration report. The advisory vote to approve the remuneration policy was not carried. The Company will again submit a revised policy to the shareholders for consideration at the next ordinary general meeting of Sava Re in 2024.
In late 2023, the supervisory board approved the management board’s goals for 2024 for determining the variable remuneration of a management board member.
In December, the supervisory board adopted a resolution to start the nomination process for the appointment of a supervisory board member with a four-year term commencing on 9 March 2025.
In March and August 2023, the supervisory board approved amendments to the act on the management board relating to the Company’s internal organisation. In March, it also took note of the information on the revision of the Sustainable Investment Policy of the Sava Insurance Group.
The supervisory board, together with the management board, called the Company’s general meeting of shareholders once in 2023, for 5 June 2023.
The supervisory board discussed in depth the analysis of solvency and financial position reports of various other companies in the insurance industry for 2022.
Because of the expected rebound of motor claim frequency back up to pre-pandemic levels, combined with rising inflation, pushing up claim amounts and claims provisions, the supervisory board was presented with periodic reports in 2023 on the impact of claims inflation on the non-life portfolio and on the measures taken to limit this impact on the performance of the Group’s motor insurance subsidiary.
In March 2023, the supervisory board considered the works council’s report on the state of employee participation in management for 2022.
The management board kept the supervisory board informed of developments in corporate finance projects.
The supervisory board took note of the management board’s report on the implementation of IFRS 17 and IFRS 9, the preliminary calculations under the new accounting standards, and the state of the transition to these new standards.
In March 2023, the supervisory board considered the 2022 risk committee report and the 2022 audit committee report. It also assessed the quality of the work of the two committees. At each session, it monitored the committees’ activities through reports and session minutes.
As part of the periodic risk reports, the supervisory board reviewed reports on correspondence between the Company and the Insurance Supervision Agency, other market regulators and inspection services. The supervisory board was regularly updated on the status of the periodic review launched by the Insurance Supervision Agency in October 2022. The supervisory board was informed of the results and conclusions of this review at the end of March 2023.
In line with best practice, the members of the supervisory board complete questionnaires upon taking office and annually thereafter, including a declaration that they have no conflicts of interest. In 2023, all the members of the supervisory board and its committees declared themselves to be independent. The declarations were noted by the supervisory board. The Company publishes the declarations of the supervisory board on its website.
In accordance with good practice, in 2023 the supervisory board evaluated its composition, its functioning, and the work of its individual members, and the supervisory board as a whole, including its cooperation with the management board. It carried out a self-assessment with positive results, and it included an action plan to continuously improve the board’s operation.
The Company’s supervisory board has established an audit committee to deal with accounting, financial and auditing matters.
The duties and powers of the audit committee of the supervisory board are laid down by the Slovenian Companies Act, its rules of procedure and those of the supervisory board, and other autonomous legal acts (e.g., recommendations for audit committees).
The term of office of each audit committee member is limited by the term of office of the supervisory board. In 2023, the audit committee comprised the following members: Matej Gomboši (chairman), Andrej Gorazd Kunstek (until 12 June 2023), Blaž Garbajs (from 13 June 2023), Katarina Sitar Šuštar (external member) and Dragan Martinović (external member).
The audit committee met nine times in 2023. All sessions were held at the Company’s head office, and all members attended all sessions convened during their term of office. The main activities of the audit committee in 2023 are outlined below.
The audit committee monitored the integrity of financial information. The main focus was on monitoring the financial reporting processes, in particular the transition to the new reporting standard IFRS 17. In this respect, it made recommendations and suggestions on materials for supervisory board sessions to ensure compliance with relevant professional standards and adherence to appropriate reporting principles, such as completeness, transparency, and consistency of reporting.
The audit committee monitored the efficiency and effectiveness of internal controls and internal audit activities based on the annual and quarterly internal audit reports, and it assessed the adequacy of the annual internal audit work plan. In addition, it monitored the quarterly reports of the internal audit department on internal auditing of Group companies (Group Internal Audit). The committee used these reports to keep up to date with and monitor information systems security activities to ensure business continuity and defense against cyberattacks. It also reviewed the quality assurance and improvement programme of the Company’s internal audit department and the department’s self-assessment for 2022. It discussed the proposed bonus for the director of internal audit for her individual-performance-based pay for 2022. The audit committee carried out an interview with the head of the internal audit department without the presence of the members of management and the minute taker, in accordance with the internal audit standards and the recommendations for the work of audit committees issued by the Slovenian Directors Association. The audit committee also took note of information on the selection process for the provider of the internal audit quality assessment to be carried out in all Group companies in 2024.
In line with the Company’s corporate governance system (the supervisory board having established a separate risk committee), the audit committee took note of the effectiveness and efficiency of the risk management framework by reviewing the minutes of the work and findings of the risk committee of the Sava Re supervisory board. The audit committee also took note of the report on the regular annual review of the Solvency II policies for 2023. It took note of the amendments to the Internal Audit Policy of the Sava Insurance Group and Sava Re d.d. and gave a favourable opinion on the proposed amendments. The audit committee also took note of the reports of other key function holders of Sava Re and the Sava Insurance Group for 2022.
In 2022, a contract was signed with Deloitte Revizija d.o.o., Dunajska Cesta 165, 1000 Ljubljana (Deloitte) to audit the financial statements for the period from 2022 to 2024. Deloitte has also audited the financial statements of Sava Re and the Sava Insurance Group for 2022 and 2023. In 2022 and 2023, the Group’s subsidiary companies were audited by the local audit staff of the same auditing firm.
During 2023, the audit committee met several times with the selected external auditor, monitored the audit of the separate and consolidated financial statements and took note of the post-audit management letter and the additional auditor’s report in relation to the audit of the financial statements for the year ended 31 December 2022. It also took note of the results of the auditor’s review of compliance with the ESEF Directive and the findings of the review of the absolute level of net assets as required by the local regulators in the relevant markets. The committee also took note of a number of other reports by the Company and the external auditor relating to the audit of the financial statements.
The audit committee took note of the 2023 audit plan and, among other things, participated in setting the audit focus areas. In December 2023, it also took note of the external auditor’s report and the management letter following the pre-audit of the 2023 financial statements. Together with the external auditor, the audit committee reviewed and followed up on information security findings and measures and the effectiveness of information system controls.
At the general meeting of shareholders of Sava Re in 2022, Deloitte was elected to audit the financial statements for the period 2022–2024. In 2023, there was no need for the audit committee to conduct a selection process for a candidate firm to be the auditor of the Company’s annual report.
In 2022, a contract was signed with Deloitte to audit the financial statements for the period from 2022 to 2024. However, in 2023 there was no need for the audit committee to consider the proposal for the contract with the external auditor or any annex thereto.
In accordance with the internal methodology for assessing the quality of the external auditor, the audit committee carried out a quality assessment of the external auditor of the 2022 annual report and assessed the quality of the service provided in auditing the annual report of the Sava Insurance Group and Sava Re d.d.
Based on quarterly management board reports on non-audit services provided by the audit firms, the audit committee assessed the independence of the auditor of the annual report of the Company and the Group. It also took note of the report on the recruitment of the Group auditor’s team members or the granting of mandates to the Group auditor’s team members in corporate bodies or other key functions in individual companies of the Sava Insurance Group. The audit committee also carried out a separate interview with the external auditor without the presence of management.
The audit committee took note of the letter of notification of the audit firm Deloitte on the requests received from the market regulators in relation to the submission of reports, namely from (1) the Insurance Supervision Agency (ISA) for the submission of the additional report to the audit committee for 2022 and (2) the Agency for Public Oversight of Auditing (APOA) for the submission of the reports issued based on the requirements of the resolution on the additional audit review of insurance companies and the additional auditor’s report for 2022.
In 2023, the audit committee took note of information on the completion of the Insurance Supervision Agency’s review of operations that started in 2022. It also took detailed note of the quarterly management board reports on the Company’s correspondence with the Insurance Supervision Agency, other market regulators and inspection services.
In 2023, the audit committee also performed other tasks. It prepared a report on its work in 2022 for the supervisory board. In the context of corporate oversight, the committee took note of the report on implementing the whistleblower protection system in a work-related context at Sava Re, presented by the compliance function holder. It also confirmed its work plan for 2024, including the attached timetable.
The audit committee carried out a self-assessment of the quality of its work, which was then presented to the supervisory board. The committee in turn took note of the assessment of the quality of its work carried out by the supervisory board in 2023. It also took note of information on the fit and proper assessment of its members and the assessment of its own competence as a collective body, both of which were conducted in 2023. All the audit committee members signed an annual declaration of their independence, which was also presented to the supervisory board.
The chairman of the audit committee reported regularly to the supervisory board on the work and positions of the audit committee. The supervisory board regularly reviewed the minutes of the committee’s sessions.
The supervisory board is of the opinion that the audit committee thoroughly considered relevant issues within its terms of reference, taking into account the fact that the board established a separate risk committee. It provided the supervisory board with high quality professional assistance in the form of opinions and proposals.
The supervisory board also believes that the composition of the audit committee is appropriate and that the members have the professional and personal qualities to maintain a high level of quality and independence in their work. Furthermore, the supervisory board is of the opinion that the audit committee received appropriate support in carrying out its work.
The supervisory board believes that identifying and managing risk is a central part of good governance and has therefore set up a risk committee to monitor risk developments and provide advice and support to the supervisory board on risk-related matters.
The term of office of each member of the risk committee is limited by the term of office of the supervisory board. In 2023, the risk committee comprised the following members: Keith William Morris (chairman), Davor Ivan Gjivoje Jr, Slaven Mićković (external member, deputy chairman) and Janez Komelj (external member).
The risk committee met six times in 2023. All members attended almost all the sessions convened (one member was excused from one session). The main activities of the risk committee in 2023 are outlined below.
The risk committee focused on overseeing the risk management system, primarily in terms of its reliability, effectiveness, and efficiency. It assessed the adequacy of the risk management system in place.
The risk committee reviewed in depth all risk management documents submitted to it, brought to its attention, or approved by the supervisory board, including:
The risk committee also took note of the report on the regular annual review of the Solvency II policies for 2023. It took note of the amendments to the Capital Management Policy of the Sava Insurance Group and Sava Re d.d. and the Own Risk and Solvency Assessment Policy of the Sava Insurance Group and Sava Re d.d., and it gave a favourable opinion on the proposed amendments.
It discussed the analysis of solvency and financial position reports in the insurance industry for 2022.
The risk committee also performed other tasks in 2023: It prepared a report on its work in 2022 for the supervisory board. As reinsurance is one of the areas of the risk management system by which a reinsurance company covers part of the assumed risks in excess of its retentions according to its tables of retention limits, the risk committee also reviewed the Company’s reinsurance programme for 2023. During the supervisory board sessions, the committee took note of the report on reinsurance protection covering the Group and non-Group portfolio and the follow-up report on claims inflation for the non-life business of Zavarovalnica Sava. The committee also took note of the 2023 credit rating reports issued by S&P Global Ratings and AM Best. It also took note of the audit committee’s work (audit committee minutes) to ensure mutual information and insight into the work of the other, and that key areas are adequately monitored through the complementary work of the two committees.
The risk committee carried out a self-assessment of the quality of its work, which was then presented to the supervisory board. The committee in turn took note of the assessment of the quality of its work carried out by the supervisory board in 2023. It also took note of the information on the fit and proper assessment of its members and the assessment of its own competence as a collective body, both of which were conducted in 2023. All the risk committee members signed an annual declaration of their independence, which was also noted by the supervisory board.
The chairman of the risk committee reported regularly to the supervisory board on the committee’s work. The supervisory board regularly reviewed the minutes of the committee’s sessions. The supervisory board believes that the composition of the risk committee is appropriate and that the members have the professional and personal qualities to perform its duties with quality and independence. The supervisory board also considers that the risk committee received appropriate support to carry out its work.
In accordance with the Slovenian Corporate Governance Code for Listed Companies, the supervisory board has established a nominations and remuneration committee as a permanent special committee to make proposals on the selection criteria and the selection of candidates for the management and supervisory boards, prepare proposals on the remuneration of the management and supervisory boards, and assist the supervisory board in other areas where, amongst other possible tasks, conflicts of interest may arise among the members of the supervisory board.
The nominations and remuneration committee operates in accordance with the resolutions of the supervisory board, the Solvency II Directive, the rules of procedure of the supervisory board, the Insurance Act, and the Slovenian Corporate Governance Code for Listed Companies.
The term of office of each committee member is limited by the term of office of the supervisory board. In 2023, the nominations and remuneration committee comprised the following members: Klemen Babnik (chairman), Davor Ivan Gjivoje Jr, Keith William Morris, Matej Gomboši, Andrej Gorazd Kunstek (until 12 June 2023), Edita Rituper (from 13 June 2023) and Blaž Garbajs (from 14 December 2023).
The nominations and remuneration committee met four times in 2023. All the members attended all committee sessions. The main activities of the nominations and remuneration committee in 2023 are outlined below.
In 2023, the nominations and remuneration committee considered the management board’s regular report on succession planning and approved the Policy on Human Resource Development and Succession Planning of the Sava Insurance Group.
The nominations and remuneration committee considered the proposed amendments to the act on the management board and recommended that the supervisory board approve them.
In accordance with the internal methodology for determining the variable pay of a management board member, the nominations and remuneration committee assessed the management board’s performance in 2022. This assessment served as the basis for the supervisory board’s resolution on the payment of variable remuneration to management board members for their business and individual performance in 2022.
The nominations and remuneration committee considered the proposed amendments to the methodology for determining the variable pay of a management board member for 2023 and 2024 and recommended that the supervisory board approve them.
The nominations and remuneration committee considered the proposed Directors’ Remuneration Report of Sava Re d.d. for 2022 (Article 294b of ZGD-1) and the proposed Remuneration Policy for Members of Management and Supervisory Bodies of the Sava Insurance Group (Article 294a of ZGD-1), which the management and supervisory boards then submitted to the 39th general meeting for approval. The remuneration policy was not approved by the general meeting. At the end of 2023, the committee again reviewed the proposed amendments to the Remuneration Policy for Members of Management and Supervisory Bodies of the Sava Insurance Group (Article 294a of ZGD-1) and recommended that the supervisory board resubmit the policy for approval to the general meeting to be convened in 2024.
At the end of 2023, after extensive discussion, the nominations and remuneration committee proposed that the supervisory board approve the proposed goals of the management board for 2024.
The chairman of the nominations and remuneration committee reported regularly to the supervisory board on the work of the committee. The supervisory board regularly reviewed the minutes of the committee’s sessions.
In accordance with the law and the Company’s fit and proper policy, the management and supervisory boards have appointed a dedicated fit and proper committee for the fit and proper assessment of the management board and the supervisory board, including all its committees, and the members of these bodies.
The term of office of each committee member is limited by the term of office of the supervisory board.
In 2023, the fit and proper committee comprised the following members: Keith William Morris (chairman), Klemen Babnik, Rok Saje (compliance officer) and Klara Hauko (director of human resource management).
The fit and proper committee met two times in 2023. All the members attended both sessions.
The main activities of the fit and proper committee in 2023 are outlined below.
In March 2023, the committee carried out a fit and proper assessment of the candidates for the position of a member of the supervisory board of Sava Re representing the interests of employees. At the same time, it carried out a regular annual fit and proper assessment of all incumbent members of the management board and the supervisory board, including its committees. It also conducted its periodic fit and proper assessment of the aforementioned management and supervisory boards as collective bodies.
When changes were made to the membership of the supervisory board’s committees, the fit and proper committee reassessed the fitness and suitability of the new members to also serve as members of the individual committees. It also reassessed the competence of each committee as a collective body in its new composition.
The chairman of the fit and proper committee reported regularly to the supervisory board on the committee’s work. The supervisory board regularly reviewed the minutes of the committee’s sessions.
The year 2023 was marked by a challenging global geopolitical and economic situation, and in August Slovenia (and the wider nearby region) were hit by flooding on an unprecedented scale. This presented the Sava Insurance Group with new challenges. The supervisory board notes that the advanced risk management system, timely actions, capital strength and customer focus of the Company enabled the Sava Insurance Group to achieve virtually all the goals set in its plan for the 2023 financial year, despite the aforementioned loss events and despite the difficult business environment. This assessment of the supervisory board is also based on the report of the independent auditor on the financial statements of Sava Re d.d. and the Sava Insurance Group for 2023, and those of the key function holders of the Company’s risk control system.
As of 2023, the Sava Insurance Group made the transition to the new accounting standards IFRS 17 and IFRS 9. The standards have been successfully introduced into regular reporting processes at all levels.
In 2023, the Sava Insurance Group entered the 2023–2027 strategy period with a new strategy that strategically builds upon and further strengthens the previous strategy period.
In 2024, the supervisory board will also pay particular attention to overseeing the management of risks arising from business operations, taking into account the challenging geopolitical situation. In 2024, in addition to its day-to-day responsibilities, it will also focus in particular on monitoring the implementation of the 2024 business plan and the five-year strategy. Equally so, the supervisory board will continue to give its steadfast support to the management board, within the scope of its responsibilities, possibilities, and defined powers.
The Company’s management board submitted the audited Annual Report of the Sava Insurance Group and Sava Re d.d. for 2023 for approval to the supervisory board. The audit committee of the supervisory board has reviewed the unaudited and the audited annual reports of the Sava Insurance Group and Sava Re d.d. for the year ended 31 December 2023, including the auditor’s pre-audit report to the management, the auditor’s letter to the management on the audit, and the additional auditor’s report to the audit committee on the audit of the financial statements as at 31 December 2023, prepared in accordance with Article 11 of Regulation (EU) No 537/2014, together with the committee’s opinion thereon. In accordance with its powers, the supervisory board examined the audited annual report at its session on 4 April 2024.
The supervisory board notes that the annual report for 2023 is clear and extensive, and complies with the content and disclosure requirements of the Companies Act, International Financial Reporting Standards and Insurance Act with its implementing regulations.
The supervisory board has also noted the opinion of the auditor Deloitte Revizija d.o.o., Dunajska Cesta 165, 1000 Ljubljana, which audited the 2023 annual report of the Sava Insurance Group and Sava Re d.d. and carried out audit reviews in all of the Group’s subsidiary companies. The supervisory board agrees with the positive opinion of the authorised auditor Deloitte, who finds that the consolidated and separate financial statements provide, in all material respects, a fair view of the financial position of the Sava Insurance Group and Sava Re d.d. as at 31 December 2023, and their profit or loss, other comprehensive income and cash flows for the year then ended, in accordance with International Financial Reporting Standards, as adopted by the European Union.
Based on its review of the 2023 annual report, and based on the opinion of the external auditor and the opinion of the audit committee, the supervisory board is of the opinion that the annual report gives a true and fair opinion of the assets and liabilities, financial position, profit or loss, and cash flows of the Sava Insurance Group and Sava Re d.d.
The supervisory board hereby approves the audited Annual Report of the Sava Insurance Group and Sava Re d.d. for 2023 as submitted by the management board.
The supervisory board has also reviewed the management board’s proposal for the appropriation of the distributable profit as at 31 December 2023, subject to final approval by the general meeting of shareholders of Sava Re. The supervisory board of Sava Re d.d. gives its consent to the management board’s proposal to the general meeting regarding the appropriation of the distributable profit as at 31 December 2023 of EUR 57,546,609.84; EUR 27,120,968.00 to be appropriated for dividends, and the remaining part of the distributable profit of EUR 30,425,641.84 to be left unallocated as retained earnings. Thus, the proposed gross dividend per share is EUR 1.75.
The supervisory board proposes that the general meeting of shareholders grant discharge to the management board for the financial year 2023.
Davor Ivan Gjivoje, Jr.
Chairman of the Supervisory Board of Sava Re d.d.
Ljubljana, 4 April 2024
Sava Re issues this corporate governance statement to publicly disclose information on the nature, structure and effectiveness of the Company’s internal governance and control system. It aims to increase transparency, accountability and trust among all the Company’s stakeholders, including shareholders, employees and the general public. The Company prepares this statement in accordance with Article 70(5) of the Slovenian Companies Act (ZGD-1) and the recommendations of the Slovenian Corporate Governance Code for Listed Companies. The statement is a special section of the business report as part of the annual report for 2023. It covers the period from 1 January 2023 to 31 December 2023, with additional disclosure of significant events occurring after this period up to the date of its publication. The statement is available in electronic form for at least five years from the date of its publication on the website of the Ljubljana Stock Exchange d.d. in its SEOnet information system (http://seonet.ljse.si) and on the Company’s official website (http://www.sava-re.si).
In December 2023, with the consent of the Company’s supervisory board, the Sava Re management board adopted the revised Corporate Governance Policy of the Sava Insurance Group and the revised Corporate Governance Policy of Sava Re d.d. The documents set out the main subsidiary governance principles for the Sava Insurance Group and the governance rules for Sava Re, taking into account the goals, mission, vision and values of the Group. The policies represent a commitment to future action.
The Corporate Governance Policy of Sava Re d.d. is available through the Ljubljana Stock Exchange SEOnet information system and from the Company’s website.
As a public limited company, Sava Re’s reference code in 2023 was the Slovenian Corporate Governance Code for Listed Companies adopted by the Ljubljana Stock Exchange and the Slovenian Directors’ Association on 9 December 2021. It is available in Slovenian and English from the Ljubljana Stock Exchange website.
The management and supervisory boards of Sava Re hereby state that Sava Re operates in compliance with the Code, with individual deviations that are disclosed and explained below.
Recommendation 5.6: External assessment of adequacy of corporate governance statement
The Company has yet to ensure an external assessment of the adequacy of the corporate governance statement. It intends to carry out an external assessment of the corporate governance statement in the current strategy period.
A remuneration policy and a remuneration report for members of management and supervisory bodies were presented to the 39th general meeting of shareholders of Sava Re (held on 5 June 2023). As the remuneration policy was not approved at the general meeting, an amended policy will be considered at the next general meeting in 2024 (scheduled for 27 May 2024).
Recommendation 10.1: Holding general meetings by electronic means
The Company has not yet provided for the possibility of attending and voting at the general meeting by electronic means without physical presence. It intends to amend its internal rules (articles of association and rules of procedure for the general meeting) during the current strategy period.
Recommendation 14.6: Duties of the supervisory board – Supervisory board members’ access to the archives after the end of their term of office
In 2024, the Company will amend the rules of procedure of the supervisory board to include a provision on the access of members to the supervisory board’s archives after the end of their term of office.
Recommendation 16.4: Evaluation of the supervisory board
The supervisory board does not perform periodic external assessments of its evaluation. The Company intends to perform periodic external assessments of the supervisory board’s evaluation during the current strategy period.
Recommendation 18.4: Supervisory board committees – Term of office of an external member of a committee not tied to the term of office of the supervisory board
In the Company, the terms of office of all committee members are tied to the term of office of the supervisory board. For practical reasons, given the complexity of fit and proper assessment procedures upon the appointment of new committee members and upon their reappointment, the terms of office of external committee members are tied to the terms of office of the supervisory board.
Recommendation 32.7: Public disclosure of the rules of procedure of management bodies
The Company has published the rules of procedure of both the general meeting and the supervisory board on its website but not those of the management board, as they are an internal procedural document.
Sava Re has a two-tier management system with a management board that conducts the business and a supervisory board that oversees operations. The governing bodies – the general meeting, and the supervisory and management boards – act in compliance with laws, regulations, the articles of association and internal rules. The Company’s articles of association and the rules of procedure of both the general meeting and the supervisory board are posted on the Company’s website.
The risk management system is a cornerstone of strong governance. The management board ensures the effectiveness of this system. Rules of the risk management systems and own risk and solvency assessment rules are set out in detail in the Company’s internal regulations.
The Company has certain functions integrated into its organisational structure and decision-making processes. These are the risk management function, internal audit function, actuarial function and compliance function, defined by applicable law as the key functions of the governance system (key functions). They are integrated in order to strengthen the three lines-of-defence framework in the Company’s control system. Rules governing individual key functions are set out in detail in the Company’s internal regulations.
The general meeting of shareholders is the supreme body of the Company through which shareholders exercise their rights in Company matters. The terms of reference of the general meeting are governed by its rules of procedure, which are posted on the Company’s website.
The general meeting of shareholders, through which the shareholders of Sava Re exercise their rights in the affairs of the Company, is convened at least once a year, but not later than by the end of August. The general meeting may be convened in other cases as provided by law, the Company’s articles of association, and whenever this is in the interest of the Company. As a rule, the general meeting is convened by the management board. In the cases stipulated by law, it may be convened by the supervisory board or shareholders.
The Company publishes general meeting notices through the SEOnet system provided by the Ljubljana Stock Exchange and through its website (www.ljse.si), on the AJPES website (www.ajpes.si) and on the Company’s official website (www.sava-re.si), as well as in printed form in one daily newspaper as provided for in the articles of association (in Delo or Dnevnik) or in the Official Gazette of the Republic of Slovenia.
To attend the general meeting and exercise their voting rights, shareholders must send the Company a registration form no later than by the end of the fourth day prior to the general meeting and must be registered holders of shares listed in the central register of book-entry securities at the end of the seventh day prior to the general meeting. The conditions of participation or exercise of voting rights at the general meeting must be set out in detail in the notice of the general meeting.
General meeting resolutions are adopted by a majority of votes cast (simple majority), unless a larger majority or other requirements are stipulated by law or the articles of association.
Shareholders may exercise their voting rights in the general meeting according to their share of the Company’s share capital. Each no-par-value share with voting rights carries one vote. Voting rights can be exercised by proxy based on a written proxy form, or through financial organisations or shareholder associations. Treasury shares carry no voting rights.
The general meeting of shareholders was convened once in 2023. In accordance with the Company’s 2023 financial calendar, the 39th general meeting of shareholders was held on 5 June 2023. Among other things, the general meeting was presented with the annual report for 2022, including the auditor’s opinion and the written report of the supervisory board to the annual report, and the annual report on internal auditing for 2022 with the opinion of the supervisory board thereto. The general meeting received the management board’s report on treasury shares. At the 39th general meeting, the shareholders adopted the management and supervisory boards’ proposal to use EUR 24,796,313.60 of the distributable profits for dividends. The dividend was EUR 1.60 gross per share, payable on 21 June 2023 to shareholders of record on 20 June 2023. The shareholders granted discharge to the management and supervisory boards for 2022. At the 39th general meeting, the shareholders approved the Directors’ Remuneration Report of Sava Re d.d. for the Financial Year 2022, whereas the advisory vote on the resolution to approve the Remuneration Policy for Members of Management and Supervisory Bodies of Sava Re d.d. was not carried. Although the remuneration policy is valid and consistent with the law, it is not fully aligned with the recommendations of the shareholder Slovenian Sovereign Holding (SSH) published on 4 May 2023. The Company will put a revised remuneration policy to a vote at the next annual general meeting of Sava Re. The remuneration report and the remuneration policy were also published on the Company’s website immediately after the 39th general meeting and will remain publicly available for at least ten years. No legal actions to challenge any general meeting resolutions were announced at the general meeting.
The supervisory board oversees the Company’s conduct of business and appoints members of the management board.
In accordance with the Company’s articles of association and applicable law, the supervisory board is composed of six members, of which four (shareholder representatives) are elected by the Company’s general meeting, and two (employee representatives) are elected by the works council, which informs the general meeting of its decision. Supervisory board members are appointed for a term of up to four years and may be re-elected. The supervisory board members elect a chair and deputy chair from among their number.
The supervisory board is composed in such a manner as to ensure responsible oversight and decision-making in the best interest of the Company. Its composition takes account of diversity in terms of technical knowledge, experience and skills, and the way members complement each other so as to form a homogeneous team, which also ensures a sound and prudent oversight of the Company’s affairs. In 2023, the Company sought to align the composition of the supervisory board with the Company’s policy on the diversity of the management and supervisory boards. The Company’s policy on diversity of the management and supervisory boards is posted on the Company’s website.
In 2023, the gender balance on the supervisory board was 16.67% women and 83.33% men. The implementation of the policy on diversity of the supervisory board in 2023 is detailed below.
The supervisory board must comply with the applicable legislation, particularly the Slovenian Companies Act and the Insurance Act, the Company’s articles of association and the supervisory board’s rules of procedure. In accordance with the law, the supervisory board must be convened at least on a quarterly basis, generally after the end of each quarter of the financial year, and more frequently if necessary. The terms of reference of the supervisory board are governed by the Rules of Procedure of the Supervisory Board of Sava Re d.d., which are posted on the Company’s website.
which was submitted for approval to the 39th general meeting (held on 5 June 2023). For more details on the remuneration policy, please refer to the section “The general meeting in 2023”.
The remuneration of supervisory board members in 2023 is disclosed in more detail in section 16.10 “Related party disclosures” in the notes to the financial statements and in more detail in the Directors’ Remuneration Report for 2023, which will be submitted as a separate document to the general meeting.
Before taking office and afterwards periodically (annually) and upon each change, each supervisory board member signs and submits to the supervisory board a statement of their independence, thereby taking a position with respect to individual conflicts of interest, in accordance with the criteria set out in the Code. The statements of independence of the members of the Company’s supervisory board are posted on the Company’s website.
Supervisory board members report any acquisition or disposal of Company shares to the Company and relevant organisations, and Sava Re posts this information. Details on POSR shares held by supervisory board members as at 31 December 2023 are provided in section 3 “Shareholders and share trading”.
In 2023, the supervisory board comprised the following members:
Pursuant to legislation, the Code and best practice, the supervisory board appoints one or more committees, tasking them with specific areas, the preparation of draft resolutions of the supervisory board, the implementation of resolutions of the supervisory board and other tasks requiring specialist expertise, thereby providing the board with professional support.
The Company has established the following supervisory board committees:
The main tasks of the audit committee are to:
In 2023, the audit committee comprised the following members:
The main tasks of the risk committee are to:
In 2023, the risk committee comprised the following members:
The main tasks of the nominations and remuneration committee are to:
In 2023, the nominations and remuneration committee comprised the following members:
The main tasks of the fit and proper committee are to:
In 2023, the fit and proper committee comprised the following members:
| Full name | Function | Employment | First appointed |
|---|---|---|---|
| Davor Ivan Gjivoje Jr | chair | Networld Inc. / DGG Holdings Ltd., 36 Cattano Ave. Fl. 5. Ste. 3, Morristown, NJ 07960, USA | 7 March 2017 |
| Keith William Morris | deputy chair | retiree | 15 July 2013 |
| Klemen Babnik | member | Ministry of Finance of the Republic of Slovenia, Župančičeva Ulica 3, 1000, Ljubljana, Slovenia | 17 July 2021 |
| Matej Gomboši | member | Financial Administration of the Republic of Slovenia, Šmartinska Cesta 55, 1000 Ljubljana, Slovenia | 17 July 2021 |
| Edita Rituper | member | Sava Re d.d., Dunajska Cesta 56, 1000 Ljubljana, Slovenia | |
| Blaž Garbajs | member (from 13 June 2023) | Sava Re d.d., Dunajska Cesta 56, 1000 Ljubljana, Slovenia | |
| Andrej Gorazd Kunstek | member (until 12 June 2023) | Sava Re d.d., Dunajska Cesta 56, 1000 Ljubljana, Slovenia |
| End of term of office | Attendance at sessions | Gender | Nationality | Year of birth | Education | Professional profile | Independence under the Code | Memberships in committees and functions |
|---|---|---|---|---|---|---|---|---|
| 1 January 2022 | 10/10 | M | American | 1968 | B.A. in political science, master of science in economics | strategic management, business administration, management of equity investments, risk management, insurance business | YES | * risk committee, member |
| * nominations and remuneration committee, member | ||||||||
| 13 June 2023 | 10/10 | M | British | 1948 | B.Sc. in management sciences, specialised in finance and marketing | strategic management, business administration, banking and insurance business, risk management | YES | - risk committee, chair |
| - nominations and remuneration committee, member | ||||||||
| 23 January 2013 | 10/10 | M | Slovenian | 1983 | university graduated lawyer | business administration, leadership, corporate governance, general legal affairs, compliance monitoring | YES | * nominations and remuneration committee, member |
| 8 March 2025 | 10/10 | M | Slovenian | 1975 | doctoral degree in computing and informatics | business administration, governance, information technology, digitalisation, audit | YES | - fit and proper committee, chair |
| - nominations and remuneration committee, chair | ||||||||
| 17 July 2025 | 10/10 | F | Slovenian | 1966 | university graduated economist | insurance business, governance, corporate governance, sustainable development | YES | * fit and proper committee, member |
| * audit committee, chair | ||||||||
| 17 July 2025 | 5/5 | M | Slovenian | 1980 | university graduated economist | finance, corporate finance, insurance business, governance | YES | - nominations and remuneration committee, member (from 13 June 2023) |
| - audit committee, member (from 13 June 2023) | ||||||||
| 17 July 2025 | 5/5 | M | Slovenian | 1974 | university graduated economist, master of science in economics | insurance and reinsurance business, actuarial affairs, governance | YES |
| Full Name | Risk Committee | Nominations and Remuneration Committee | Fit and Proper Committee | Audit Committee |
|---|---|---|---|---|
| Davor Ivan Gjivoje Jr | 6/6 | 3/3 | ||
| Keith William Morris | 6/6 | 3/3 | 2/2 | 9/9 |
| Klemen Babnik | 3/3 | 2/2 | 4/9 | |
| Matej Gomboši | 3/3 | 5/9 | ||
| Edita Rituper | 0/3 | 1/3 | ||
| Blaž Garbajs | ||||
| Andrej Gorazd Kunstek |
Imark, Matej Gomboši, Inštitut za Svetovanje in Informatiko, s.p., Panonska Ulica 101, Beltinci, 9231 Beltinci, Slovenia – founder
Blaž Garbajs is also a member of the audit committee of the associate company Diagnostic Centre Bled, and this committee also serves as the audit committee for two of the associate’s subsidiaries.
| Full Name | Supervisory Board Committee | First Appointed | End of Term of Office | Attendance at Sessions | Gender | Nationality |
|---|---|---|---|---|---|---|
| Katarina Sitar Šuštar | audit committee | 17 July 2021 | 17 July 2025 | 9/9 | F | Slovenian |
| Dragan Martinović | audit committee | 17 July 2021 | 17 July 2025 | 9/9 | M | Slovenian |
| Slaven Mićković | risk committee | 17 July 2021 | 17 July 2025 | 6/6 | M | Slovenian |
| Janez Komelj | risk committee | 17 July 2021 | 17 July 2025 | 6/6 | M | Slovenian |
| Rok Saje | fit and proper committee | 17 July 2021 | 17 July 2025 | 2/2 | M | Slovenian |
| Klara Hauko | fit and proper committee | 17 July 2021 | 17 July 2025 | 2/2 | F | Slovenian |
| Year of birth | Education | Professional profile | Employment | Notes on memberships of management or supervisory bodies of third parties |
|---|---|---|---|---|
| 1971 | university graduated economist, MBA | audit, accounting, finance, taxation, banking and insurance, corporate governance, certified auditor | University of Ljubljana, Faculty of Economics, Kardeljeva Ploščad 17, 1000 Ljubljana, Slovenia | Flat, Katarina Sitar Šuštar, s.p., Zaprice 6b, 1241 Kamnik, Slovenia – founder |
| 1959 | university graduated economist | audit, accounting, finance, taxation, commercial trade, certified auditor | UHY Revizija in Svetovanje d.o.o., Vurnikova 2, 1000 Ljubljana, Slovenia | Shramba d.o.o., Vilharjeva Cesta 27, 1000 Ljubljana, Slovenia – founder and managing director |
| 1958 | master of mathematical sciences, doctor of science in economics | banking, modelling, risk management | Ministry of Labour, Family, Social Affairs and Equal Opportunities, Štukljeva Cesta 44, 1000 Ljubljana, Slovenia | UHY Revizija in Svetovanje d.o.o., Vurnikova 2, 1000 Ljubljana, Slovenia – founder and holder of procuration |
| 1954 | master of economics, master of computer science, doctor of science in economics | insurance operations, actuarial affairs, risk management | retiree | SM, Poslovno Svetovanje, Slaven Mićković, s.p., Avčinova 12, 1000 Ljubljana, Slovenia – founder |
| 1977 | university graduated lawyer | insurance operations, general legal affairs, insurance law, compliance | Sava Re d.d., Dunajska Cesta 56, 1000 Ljubljana, Slovenia | / |
| 1972 | university graduated economist, MBA, master of occupational psychology and organisation | human resources management and development, work organisation | Sava Re d.d., Dunajska Cesta 56, 1000 Ljubljana, Slovenia | / |
The management board runs the Company and represents it in public and legal matters. It is composed of at least two but no more than five members, of whom one is the chair. The chair and members of the management board are appointed by the supervisory board for a period of five years. Such appointments are renewable without limitations. The chair and all members of the management board are in regular employment on a full-time basis. The exact number of management board members and the areas for which they are responsible is laid down by the supervisory board in the Act on the Management Board of Sava Re d.d.
The management board is composed in a manner to ensure responsible oversight and decision-making in the best interest of the Company. The management board’s composition takes account of the diversification of technical knowledge, experience and skills, and the way members complement each other so as to form a homogeneous team and ensure sound and prudent conduct of the Company’s business. In 2023, the Company sought to align the composition of the management board with the Company’s policy on diversity of the management and supervisory boards.
The Company’s policy on diversity of the management and supervisory boards is posted on the Company’s website.
In 2023, the gender balance on the management board was 33.33% women and 66.67% men until 21 March 2023, and 25% women and 75% men from 22 March 2023. The implementation of the policy on diversity of the management board in 2023 is detailed below.
The management board operates in accordance with the applicable legislation, particularly the Slovenian Companies Act and the Insurance Act, as well as with the articles of association and the act on the management board and its rules of procedure. Terms of reference and operation of the management board are defined in more detail in the Rules of Procedure of the Management Board of Sava Re d.d.
Delimitation of competencies between the management and supervisory bodies is described in greater detail in the Corporate Governance Policy of Sava Re d.d., which is posted on the Company’s website.
The remuneration of the management board members consists of a fixed and a variable component. The variable component of the salary of a management board member is composed of (1) business-performance-based pay, (2) individual-performance-based pay linked to the annual goals of each management board member and (3) team-performance-based pay relating to joint goals of the management board. The variable component must not be determined so as to allow the rewarding of behaviour that encourages the exposure of the Company to uncontrolled risk. Remuneration, reimbursements and other benefits of management board members are set out in the employment contract made between the Company and each management board member. The methodology used to establish both the variable pay and the amount of the bonus of each management board member is adopted by the supervisory board.
Sava Re prepared an update of its remuneration policy in 2023. For more details on the remuneration policy, please refer to the section “The general meeting in 2023”.
The remuneration of the members of the management board in 2023 is disclosed in more detail in section 16.10 “Related party disclosures” in the notes to the financial statements and in more detail in the Directors’ Remuneration Report for 2023, which will be submitted as a separate document to the general meeting.
The management board members report any acquisition or disposal of the Sava Re shares to the Company and to the relevant institutions, which is then published by Sava Re. Details on POSR shares held by management board members as at 31 December 2023 are provided in section 3 “Shareholders and share trading”.
In 2023, the management board comprised the following members: Marko Jazbec (chairman), Polona Pirš Zupančič, Peter Skvarča and David Benedek (the latter from 22 March 2023).
The average age of the members of the management board is 50.38 years. All the members of the management board are citizens of the Republic of Slovenia.19
19 GRI 202-02.
| Full name | Function |
|---|---|
| Marko Jazbec | chairman |
| Polona Pirš Zupančič | |
| Peter Skvarča | |
| David Benedek |
| Full Name | First Appointed | End of Term of Office | Gender | Nationality | Year of Birth | Education | Professional Profile |
|---|---|---|---|---|---|---|---|
| Marko Jazbec | 12 May 2017 | 13 May 2027 | M | Slovenian | 1970 | university graduated economist | banking, insurance business, finance, strategic management, corporate governance, business administration |
| Polona Pirš Zupančič | 14 January 2018 | 15 January 2028 | F | Slovenian | 1975 | university graduated economist, master of science in economics | insurance and reinsurance business, corporate governance, controlling, accounting, risk management, actuarial affairs, corporate governance, business administration |
| Peter Skvarča | 19 June 2020 | 19 June 2025 | M | Slovenian | 1975 | university graduate in political sciences / international relations, master’s degree in European integration | insurance and reinsurance business, corporate governance, business administration |
| David Benedek | 22 March 2023 | 22 March 2028 | M | Slovenian | 1973 | university graduated economist, master of science in economics | banking, insurance business, finance, corporate governance, business administration |
Zavarovalnica Sava d.d., Ulica Eve Lovše 7, 2000 Maribor, Slovenia – deputy chair of the supervisory board
Sava Neživotno Osiguranje a.d., Bulevar Vojvode Mišića 51, 11000 Belgrade, Serbia – chair of the board of directors
supervisory board (from 16 August 2023)
Vita, Življenjska Zavarovalnica, d.d., Trg Republike 3, 1001 Ljubljana, Slovenia – chair of the supervisory board (from 7 June 2023)
Vita S Holding d.o.o., Skopje, Ul. Dimche Mirchev 20, Center Municipality, 1000 Skopje, North Macedonia – chair of the supervisory board (from 14 September 2023)
Internal controls comprise a system of guidelines and processes designed and implemented by Sava Re at all levels to manage risks associated with, among other things, financial reporting, for both Sava Re and the Sava Insurance Group. These controls work to guarantee the efficiency and effectiveness of operations, the reliability of financial reporting and compliance with applicable external and internal regulations.
Apart from the Slovenian Companies Act (ZGD-1), Sava Re is governed by the Slovenian Insurance Act (ZZavar-1), which provides that insurance companies must put in place and maintain an appropriate internal control and risk management system. Relevant implementing regulations based on the Insurance Act are issued by the Insurance Supervision Agency and strictly complied with by the Company.
Financial controls are closely linked to information technology controls, which aim, among other things, to limit and control access to the network, information and applications, and to control the completeness and accuracy of data input and processing. The latter is established at the Group and parent company level through compliance with the information security policy and the enforcement of security policies.
Internal controls applicable to financial reporting on a consolidated basis are set out in the internal accounting rules and the Sava Insurance Group Financial Control Rules.
Internal controls, which are mainly preventive and detective in nature, include regular checks on account balances, reconciliation of subsidiary records with general ledger balances, built-in system controls (access restrictions, segregation of duties, limit systems and authorisations), automation of reporting and transfers between systems, additional manual controls on reporting and checks on consolidation packages. Reporting consistency is achieved through the use of a uniform data reporting system.
Internal controls include the four-eye principle, information transfer (including with subsidiaries), regular review and monitoring of transactions, department meetings, ongoing monitoring of announced regulatory changes, regular training and mentoring.
The valuation of assets and liabilities arising from insurance and reinsurance contracts follows the four-eyes principle, while the calculations are based on the valuation methodology for insurance and reinsurance contracts in accordance with IFRS 17. In addition, for consolidation purposes, additional internal controls are in place to review the consolidation processes for manual data entry and internal controls over items where adjustments are made to the Group, as well as controls over all the procedures carried out for the Group (e.g. consolidation adjustments). Members of the Group submit the financial information required for the preparation of the consolidated financial statements in reporting packages, prepared in accordance with International Financial Reporting Standards (IFRS) and the parent company’s guidelines, within the time limits set out in the Company’s financial calendar. In addition, Group members submit their separate financial statements, which constitutes an additional control measure. By unifying information systems and applications that support consolidation, planning and reporting, the exchange and control of financial data between subsidiaries and the parent company is becoming ever more efficient. Whether necessary information system controls have been put in place and function adequately is verified, on an annual basis, by relevant experts as part of the regular annual auditing of financial statements.
Asystem of internal controls is also in place for other important business processes. Effective risk management requires that companies ensure a functioning and established internal control system. The systematic internal controls of companies ensure the achievement of its objectives in terms of the efficiency and effectiveness of its operations, the reliability, timeliness and transparency of internal and external reporting, and compliance with applicable laws, legal provisions and internal regulations. All major business processes have been specified, including details on control points and the persons responsible for each control. Basic controls are carried out by reviewing documents received or by an automatic or manual control procedure of processed data.
Sava Re complies with all rules and regulations on handling confidential data and inside information, allocating investments and prohibiting trading based on inside information. Other entities authorised by Sava Re to provide individual services must do so in compliance with the law, implementing regulations, service contracts, internal rules and work instructions in force at Sava Re.
The risk management department monitors improvements in the internal control environment and keeps track of internal controls in the internal control register, which is linked to the risk register. In accordance with the Insurance Act, Sava Re has its own internal audit department, which provides assurance and advice to the management board on how to increase added value and improve the efficiency and effectiveness of operations. The internal audit department assists the Company in achieving its goals by systematically and methodically assessing the effectiveness and efficiency of the governance, risk management and internal control systems and making recommendations for their improvement. The internal audit also reports on its findings to the management board, the audit committee and the supervisory board.
In 2022, a contract was signed with Deloitte Revizija d.o.o., Dunajska 165, 1000 Ljubljana, for the audit of the financial statements for the period 2022–2024. Deloitte has also audited the financial statements of Sava Re and the Sava Insurance Group for 2022 and 2023. In 2022 and 2023, the Group’s subsidiary companies were audited by the local audit staff of the same auditing firm.
Sava Re is subject to the Slovenian Takeovers Act (ZPre-1).
The composition of Sava Re’s share capital, the list of qualified shareholders under the Slovenian Takeovers Act as at 31 December 2023, the rights and obligations attached to the shares, the restrictions on share transfer and the absence or existence of shares carrying special control rights are presented in section 3 “Shareholders and share trading”.
Employee share scheme
Sava Re has no employee share scheme.
Restrictions of voting rights
Sava Re has adopted no restrictions on voting rights.
Shareholders’ agreements restricting transferability of shares and voting rights
Sava Re is not aware of any such agreements between shareholders.
Rules on appointment or removal of members of management or supervisory bodies and on amendments to the articles of association
Company rules on appointment or removal of management board members
Under the Sava Re articles of association, the chair and the members of the management board are appointed by the supervisory board for a period of five years. Such appointments are renewable without limitation. To be appointed as a member of the management board, natural persons must have full legal capacity and meet the requirements set down by law and the Company’s internal rules. The process and criteria for the selection of candidates for members of the management board and the process of periodic fit and proper assessments of individual members, as well as the assessment of the competence of the management board as a collective body, are clearly set out in the Company’s fit and proper policy for relevant persons. The management board as a whole and its individual members may be removed from office by the supervisory board for reasons prescribed by law.
Company rules on appointment and removal of supervisory board members
Under the Sava Re articles of association, the supervisory board is composed of six members, of which four (shareholder representatives) are elected by the Company’s general meeting, and two (employee representatives) are elected by the works council, which subsequently informs the general meeting of its decision. Shareholder representatives of the supervisory board are elected by the general meeting by a majority of votes present. The term of office of supervisory board members is four years and is renewable. To be appointed as a member of the supervisory board, natural persons must have full legal capacity and meet the requirements set down by law and the Company’s internal rules. The process and criteria for selecting candidates for membership of the supervisory board and for drafting proposals for general meeting resolutions on the appointment of supervisory board members, including the process of periodic fit and proper assessments of individual members, as well as the assessment of the competence of the supervisory board as a collective body, are clearly set out in the Company’s fit and proper policy for relevant persons. Supervisory board members who are shareholder representatives may be removed from office by the general meeting for reasons prescribed by law, by a resolution passed by a majority of at least three quarters of the share capital represented.
Company rules on amendments to its articles of association
The Sava Re articles of association do not contain special provisions governing their amendment. Under the applicable legislation, they may be amended by resolution of the general meeting by a majority of at least three quarters of the share capital represented.
Powers of the management board (increase in share capital, acquisition of treasury shares)
The management board has no authorisation to increase the share capital.
The Company’s management board has no authorisation to purchase treasury shares.
With the additional treasury share repurchases in April 2016, the management board fully exhausted the general meeting authorisation granted in 2014 to purchase treasury shares up to 10% minus one share of the share capital.
SavaRe limits its exposure by reinsuring its own account (retrocession). As is customary in the industry, retrocession contracts contain provisions governing contract termination in cases involving significant changes in ownership or control of the counterparty.
Agreements between an entity and members of its management or supervisory bodies on compensation in case of (i) resignation, (ii) dismissal without cause or (iii) termination of employment relationship due to any bid specified in the law governing takeovers.
Management board members are not entitled to severance pay in case of resignation. A management board member is entitled to severance pay if recalled for other economic or business reasons (major change in shareholder structure, reorganisation, launch of a new product, major change in the Company’s business and such like) and the employment relationship with a company of the Sava Insurance Group is terminated.
A management board member is also entitled to severance pay in the event of termination of their office by mutual consent, in which case there must be no grounds of fault for their removal from office, in conjunction with the termination of their employment relationship with a company of the Sava Insurance Group. A management board member is also entitled to severance pay upon retirement.
The parent company’s management and supervisory bodies are the Group’s bodies responsible for the proper governance and supervision of the entire Group and for setting up a governance framework appropriate to the structure, business and risks of the Sava Insurance Group as a whole and of its individual members.
The parent company fully exercises its governance function by setting the business strategy from the top down, taking into account both the Group as a whole and its individual members.
For optimal capital allocation and resilience against unforeseen events, capital allocation and capital adequacy are managed on the Group level following the top-down principle. As part of its risk strategy, the Group sets the risk appetite at the Group level and the level of its members.
The Group has set up a systematic approach to risk management, including risk management at the level of individual companies, appropriate monitoring of the risks of individual companies by the parent company and risk management at the Group level. The latter takes into account any interaction between the risks of individual Group companies, in particular risk concentration and other material risks associated with the operation of the Group.
Management or supervisory bodies of Sava Insurance Group subsidiaries individually pursue the same values and corporate governance policies as the parent company, unless otherwise required by law, the local regulator or based on the principle of proportionality. Therefore, the management or supervisory bodies of each Sava Insurance Group subsidiary, as part of their responsibility for the governance of their company with regard to the implementation of the Group’s policies, consider the need for any adjustments to local legislation as well as any other necessary adjustments and, in accordance with the procedures set out in the Group’s policies, determine their adjustments to these policies, ensuring that the subsidiary complies with applicable laws, implementing regulations and the rules of sound and prudent operation.
22 GRI 3-3.
The governance of the Sava Insurance Group is described in more detail in the Corporate Governance Policy of Sava Re d.d. posted on the Company’s website.
Ljubljana, 15 March 2024
Ljubljana, 4 April 2024
Sava Re Management Board
Sava Re Supervisory Board
Marko Jazbec, Chairman
Davor Ivan Gjivoje Jr, Chairman
Polona Pirš Zupančič, Member
Peter Skvarča, Member
David Benedek, Member
Through a positive climate, good business culture, continuous training and investments in employees, we contribute to the ongoing development of insurance and ancillary products and to more optimal business processes. We are developing a Group-specific corporate culture that will be reflected in the quality of services and in the loyalty of our employees to their company and the Group.
By definition, insurance is the provision of economic security through the spreading of financial risk, which is why the industry is tightly intertwined with the larger overall economy. Within this system, Sava Re has a responsibility to support activities that contribute to improving the social environment. Sustainable development is an area to which the Company is increasingly committed. Special attention is given to the exchange of knowledge, ongoing training of employees and external stakeholders, and the utilisation of synergies among Sava Insurance Group companies. The social responsibility demonstrated reflects the values on which we intend to focus more in the future.
We are working to become a recognised provider of comprehensive insurance and reinsurance services in our target markets, to create a climate of trust and loyalty among our stakeholders and to be recognised as a company that communicates fairly and transparently. We strive to meet the expectations of our shareholders and achieve an adequate return on equity, to raise awareness about the organisation’s values and to integrate these into core business policies and the way people conduct themselves.
23 GRI 2-23.
Through commitment and constant progress, we ensure security and quality of life.
We are building a customer-centric, flexible and sustainability-oriented insurance group.
We build relationships with care, integrity and respect.
We exceed customer expectations through our ongoing effort to make improvements and strengthen relationships.
We are active in relation to our natural and social environment.
The strategy of the Sava Insurance Group sets out strategic goals in two ways, based on its three key focus areas in the 2023–2027 strategy period and based on the Group’s key pillars of business operations.
For the 2023–2027 period, the Group has adopted a strategy that will drive the Group forward on three key priorities:
The Sava Insurance Group has set the following financial targets for 2024.
| 2024 plan | |
|---|---|
| Business volume* | > EUR 925 million |
| Business volume growth* | > 5% |
| Return on equity | > 10.5% |
| Profit, net of tax | > EUR 70 million |
| Solvency ratio | 170%–210% |
< 95%
2.2%
| 2024 plan | Non-life, EU | > 6% |
|---|---|---|
| Life, EU | > 2% | |
| Reinsurance | > 1% | |
| Non-life, non-EU | > 8% | |
| Life, non-EU | > 10% | |
| Asset management | > 5% |
| Achievement of targets in 2023 | EUR million | 2023 | 2023 plan | As % of plan |
|---|---|---|---|---|
| Business volume | 910.1 | > 800 | 113.8% | |
| Business volume growth | 14.4% | > 4% | ✓ | |
| Return on equity | 10.8% | > 9.5% | ✓ | |
| Profit, net of tax | 64.7 | > 53 | 22.1% | |
| Solvency ratio | 188%–194% | 170%–210% | ✓ | |
| Combined ratio | 93.1% | < 95% | ✓ | |
| Return on investment portfolio | 2.1% | > 1.5% | ✓ |
The Sava Insurance Group achieved all its financial targets in 2023. It increased its business volume to EUR 910.1 million, 13.8% ahead of plan. All operating segments exceeded their targets. The net profit was EUR 64.7 million, which translates into an above-target return on equity. The combined ratio deteriorated compared to last year due to the summer storms in Slovenia and other markets in which the Group operates, but it remained within the target range. The Group’s active management of its investment portfolio also resulted in a return well above the lower end of the target range. The reinsurance segment and the net investment result were the main contributors to the above-target performance.
Customer at the centre
The main customer-centricity activities focused on consolidating customer support processes in call centres and introducing multichannel solutions in several companies of the Sava Insurance Group, with an emphasis on managing processes involving a large number of organisational units and additional interconnected communication channels.
We enhanced our digital and self-service solutions for customers, especially those dedicated to online sales, and optimised the user experience.
We launched a technology- and design-focused transformation of Zavarovalnica Sava’s website on a target digital customer experience management platform, making possible a simplified roll-out of this solution to other Group companies.
At Zavarovalnica Sava, we implemented a solution to automate digital communication and used it to launch additional e-communication campaigns, increasing the share of electronic communication to 13.2%.
By optimising business processes and, at the same time, planning the IT solutions on which business processes are implemented, we have standardised internal procedures for preparing functional specifications, adapted the way we manage change, and implemented activities to improve our employees’ skills required for better-quality process optimisation (full-day workshops, individual training, mentoring and presentations at internal conferences).
The most visible optimisations were implemented in automated claims reporting, the procurement process, automated mass task allocation and extended internal use of the electronic central population register (eCRP of Slovenia).
For the changeover of the core business system in the Slovenian insurance segment, we continued the inventory and simultaneous changes of processes related to product configuration, sales, register of persons, investment accounts, reinsurance, commissions, receipt and control of quotes, bookkeeping and claims.
We have further enhanced the sustainability of the Group’s business in line with our sustainable development strategy. We pay particular attention to reducing the carbon intensity of our operations – through investments in energy efficiency and the digitalisation of processes. By increasing the share of ESG investments in our portfolio and responsible (re)insurance underwriting, we are also bringing sustainability into the value chain and focusing on sustainable elements in our range of products. We support global sustainability trends and focus on goals related to climate change and caring for the health and well-being of our customers, employees and the wider community.
In the financial year 2023, we continued to successfully pursue the product development and upgrading planned for the strategy period. In terms of products with a strong sustainability component, we expanded our micromobility and solar power products to the non-EU markets while responding to additional market requirements by modifying some of our products (personal accident, health and assistance insurance). At the Group level, we further strengthened our cooperation with banks, launched credit protection insurance to cover borrowers in the event of their inability to repay a loan due to accidental death, loss of employment, illness and similar risks, and successfully prepared the technical basis for redesigning non-life policies for micro, small and medium-sized companies. We successfully addressed the challenges associated with the development of claims inflation, and we began to work more broadly on changes and adjustments to non-life underwriting rules in light of the emerging reality of increasingly extreme climate change. We responded in good time to the increased reporting standards associated with the EU Taxonomy on sustainability and, following the successful acquisition of ASP.ins, prepared a more concrete roadmap for the development of software solutions for 2024.
In the life and pensions segment, in the past year the Group focused on accelerating the increase in the number of policyholders covered by the life risk insurance ecosystem, which provides customers with pay-as-you-live life insurance while giving them access to a wide range of benefits and services from selected contractual partners. We paid particular attention to developing and enhancing a wide range of additional coverages for health risks, such as critical illness treatment abroad and access to a second opinion, and we further expanded our range of products with new critical illness cover packages. The existing group accident and health insurance packages were redesigned, the unit-linked life insurance products were adapted to the new accounting standards, the selection of bancassurance products was expanded, cooperation was strengthened and new banking partners were gained. In addition, cooperation between the North Macedonian pension company and the new banking partner was established. In process development, the underwriting process in the non-EU markets was overhauled, while in the domestic market the product development and management control processes were upgraded in line with the requirements of the Insurance Distribution Directive.
One of the key strategic focus areas is the appropriate diversification of the reinsurance portfolio, geographically, within individual markets, by classes of insurance and form of reinsurance cover. SavaRe systematically followed this approach when renewing its contracts in 2023. Developments in 2023 remained strongly linked to the geopolitical and macroeconomic picture of the global economy: the situation in the Middle East (Israel and Gaza), the war in Ukraine and the related volatility in global energy markets. The situation was further exacerbated by more severe natural catastrophes (storms, floods, fires, etc.) and other loss events, which led the reinsurance industry to further tighten reinsurance conditions, in terms of both pricing and content (stricter conditions in reinsurance contracts). The main focus was on portfolio restructuring by form of reinsurance, with a shift from proportional business to non-proportional business, thereby achieving a more appropriate portfolio diversification. There was also a strong strategic focus on a more appropriate geographic diversification, where SavaRe made some significant changes. We reduced concentrations in individual major markets, sought opportunities in markets where SavaRe did not have a strong presence and reduced exposures on individual treaties. This trend is expected to continue in 2024, and, with the measures already introduced and implemented, SavaRe will achieve a better-balanced reinsurance portfolio, in line with the key strategic focus of achieving the required profitability and low volatility of the portfolio.
SavaInfond continued to digitalise its business in 2023, maintaining its position in key sales channels and recording positive net inflows into its fund of funds.
In 2023, TBS Team24 achieved record performance and outstanding operating results. The company efficiently introduced the automatic transfer of case data to non-EU companies and, in cooperation with Zavarovalnica Sava, set up digital reporting of assistance cases. This innovation is key to achieving the company’s goal of becoming a digitally focused assistance company. During the year, TBS Team24 also expanded its services with the introduction of e-Call services in partnership with some of the world’s leading car manufacturers. Together with our partners and our continued investment in digital technologies, the company remains committed to achieving high quality and customer satisfaction standards.
Despite a moderation, high inflation, stagnant euro area economic activity and persistent geopolitical tensions remained at the forefront of 2023. The euro area has been stagnating since the third quarter of 2022, and this is projected to continue until mid-2024. The slowdown is the result of several factors, including tight monetary policy and lower savings surpluses, as well as external factors, such as the general weakness of the global industrial cycle and the energy shock in the region. The expected level of gross domestic product (GDP) is below the pre-pandemic trend and business sentiment in Europe is weaker, with some of the negative sentiment stemming from a deterioration in the economic outlook for Germany. Inflation in euro area countries was set to fall from a peak of 10.6% in 2023 to 2.9% at year end. The decline in inflation rates in the euro area and elsewhere in the developed world was mainly due to central banks’ restrictive monetary policies. Although inflation is not yet at the European Central Bank’s target level, the declining trend in inflation suggests that no further rate hikes are expected, and the market is already pricing in an interest rate cut in 2024. Similar to the euro area, inflation in the US fell from a peak of 9.1% to 3.4% in December 2023. In addition to high inflation, risks to future economic growth include a possible slowdown in the Chinese economy and geopolitical tensions, notably Russia’s ongoing military aggression against Ukraine and the war in the Middle East.
A positive factor for future economic growth is the robustness of the US economy, which grew by 3.3% in the fourth quarter despite high interest rate hikes, with consumer spending (as a result of savings during the pandemic) and ample fiscal support being the key drivers of growth. US households and businesses are in a strong financial position, so the likelihood of more serious financial problems is diminished.
The year 2023 was better than expected in terms of returns at year-end 2022. Both shares and bonds closed in positive territory. The European STOXX600 Index rose by 12.7%, the US S&P500 Index by 20.3%, and the MSCI ACWI Global Equity Index by 16.3% for the year, all in euro terms. European and US government bond yields also fell in 2023, contributing to the positive performance of government bond indices. As interest rates normalize, the starting point for expected returns on shares and bonds will be historical averages. Higher yields made bonds an attractive asset class again, especially compared with domestic bank deposits, where yields are still very low.
Source: Eurostat, U.S. Bureau of Labor Statistics in Bloomberg 2023, data for the period from 30 December 2022 to 29 December 2023.
Markets in the region were affected by the same factors as mentioned above. In all markets, economic growth continued in 2023 and inflation, while still high, eased slightly compared to the previous year. In most markets, economic growth in 2024 is estimated to be similar to or slightly higher than in 2023, and average inflation growth rates are expected to moderate.
| GDP (real growth in %) | Average rate of inflation (%) | Unemployment rate (%) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | E2023 | P2024 | 2020 | 2021 | 2022 | E2023 | P2024 | |
| Slovenia | -4.2% | 8.2% |
| Country | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | Year 12 | Year 13 | Year 14 | Year 15 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Croatia | -8.5% | 13.1% | 6.2% | 2.7% | 2.6% | 0.0% | 2.7% | 10.7% | 8.6% | 4.2% | 9.0% | 8.1% | 6.8% | 6.3% | 5.9% | |
| Serbia | -0.9% | 7.6% | 2.3% | 2.0% | 3.0% | 1.6% | 4.1% | 12.0% | 12.4% | 5.3% | 9.7% | 11.0% | 9.4% | 9.1% | 9.0% | |
| North Macedonia | -4.7% | 3.9% | 2.1% | 2.5% | 3.2% | 1.2% | 3.2% | 14.2% | 10.0% | 4.3% | 16.4% | 15.4% | 14.4% | 14.3% | 14.1% | |
| Kosovo | -5.3% | 10.7% | 3.5% | 3.8% | 4.0% | 0.2% | 3.3% | 11.7% | 4.7% | 3.1% | 26.0% | 20.8% | n/a | n/a | n/a | |
| Montenegro | -15.3% | 13.0% | 6.1% | 4.5% | 3.7% | -0.2% | 2.4% | 13.1% | 8.3% | 4.3% |
After 2022, the impact of claims inflation on the Group’s business in 2022 increased as the inflation rate rose sharply, and the Group’s insurers responded by increasing their premium rates, reducing the impact of claims inflation on the Group’s business in 2023. Continued high inflation increased the expenses of Group companies.
In the summer, Slovenia and some other countries in which the Group operates were hit by a wave of storms and floods that caused significant damage to property. The gross claims resulting from these events totalled EUR 88.3 million in 2023 and, taking into account our reinsurance protection, the impact of these events on the Group’s result was EUR 27.4 million. The largest impact on the financial performance was reported by Zavarovalnica Sava (EUR 26.4 million).
The finance result of insurance companies and the performance of pension and asset management companies benefited from favourable developments in the financial markets, which increased interest income, assets under management and fund inflows.
Sava Re, the parent company of the Sava Insurance Group, transacts the reinsurance business in over 100 countries worldwide.
The following section contains a description of the international non-life insurance market and insurance markets in which the Sava Insurance Group operates.
The year 2023 saw a challenging international environment, with both the start of the Israel–Hamas war and the ongoing war in Ukraine, with the associated volatility in global energy markets. Non-life claims showed an upward trend, driven by higher replacement costs compared to the pre-pandemic period. While the pressure on the cost of construction materials generally eased during the year, higher salary and financing costs came to the fore as a result of increased inflation rates in the international environment and restrictive monetary policies by central banks. At the same time, insured losses from natural catastrophes have been on the rise, exceeding USD 100 billion in 2023 for the fourth consecutive year, with climate change and intensive urbanisation in exposed areas cited as key factors in the increased frequency and magnitude. Challenging market conditions have led to a sharp increase in non-life reinsurance prices in 2023, and the global outlook is for continued but less pronounced price increases in the future. Increased geopolitical and macroeconomic instability weakens growth prospects but reinforces the key role of insurance in risk transfer. In this context, the closing of the insurance gap, price increases and higher investment returns in a higher interest rate environment are positive factors that improve expected profitability.
All insurance markets in which Sava Insurance Group operates grew in 2023, and most of the Group’s insurers maintained or increased their market shares compared to 2022.
| Growth/decline in premiums | Premiums per capita (EUR) | Premiums as % of GDP (%) |
|---|---|---|
| 2020 | 1,208.9 | 5.4% |
| 2021 | 1,236.4 | 5.0% |
| 2022 | 1,320.7 | 4.9% |
| 2023 | 1,432.3 | 4.8% |
| Slovenia* | ||
| 2020 | 345.1 | 2.7% |
| 2021 | 392.8 | 2.6% |
| 2022 | 427.8 | 2.5% |
| 2023 | 449.1 | 2.3% |
| Croatia** | ||
| 2020 | 134.6 | |
| 2021 | 147.8 | |
| 2022 | 167.9 | |
| 2023 |
-5.2%
15.7%
10.0%
12.3%
78.5
90.9
113.5
127.4
-0.2%
15.4%
14.2%
9.2%
56.3
65.3
75.9
82.9
-1.1%
5.5%
9.6%
10.3%
150.6
159.4
174.1
188.7
** For 2023, gross premiums written are no longer available, so premiums paid are shown. For the 2023/2022 premium growth, the premiums paid in 2022 are also taken into account for comparability. Premium figures exclude the premiums of the Austrian and Italian branches of Euroherc.
*** The 2023 estimate is based on premium growth in the first nine months of 2023.
Slovenia: in 2023, the Slovenian insurance market consisted of 12 domestic insurance companies, 6 foreign branches and 2 reinsurance companies, which are all members of the Slovenian Insurance Association (SIA). In 2023, the non-life insurance business accounted for 72.5% of total insurance premiums and life insurance for 27.5%. In 2023, gross premiums written in the Slovenian insurance market grew by 9.0% (non-life premiums by 9.6% and life premiums by 7.6%). The Sava Insurance Group operates in the market with two insurance companies, Zavarovalnica Sava and Vita. Together, the two insurers ranked second among Slovenian insurers in 2023, with a market share of 20.6%.
| Source for premiums: | Slovenian Insurance Association; | source for GDP: | IMAD, Economic Mirror, No. 1/2024; | source for population: | Statistical Office of the Republic of Slovenia. | ||
|---|---|---|---|---|---|---|---|
| Source for premiums: | Croatian Insurance Bureau; | source for GDP and population: | 2020–2022: Croatian National Bank, 2023: International Monetary Fund. | ||||
| Source for premiums: | National Bank of Serbia; | source for GDP and population: | Statistical Office of the Republic of Serbia; | GDP 2023: | International Monetary Fund. | ||
| Source for premiums: | Insurance Supervision Agency, North Macedonia; | source for GDP 2020–2022: | National Bank of the Republic of North Macedonia; | source for GDP 2023: | International Monetary Fund; | source for population: | State Statistical Office, North Macedonia. |
| Source for premiums: | Central Bank of the Republic of Kosovo; | source for GDP 2020–2022 and population: | Kosovo Agency of Statistics; | GDP 2023: | International Monetary Fund. | ||
| Source for premiums: | Insurance Supervision Agency, Montenegro; | source for GDP 2020–2022 and population: | Statistical Office, Montenegro; | GDP 2023: | International Monetary Fund. |
Two reinsurance companies are domiciled in Slovenia and are members of the Slovenian Insurance Association. The following table shows the market shares of the two reinsurance companies in the Slovenian market.
| EUR | 2023 | 2022 | Gross premiums written | Market share | Gross premiums written | Market share | |
|---|---|---|---|---|---|---|---|
| Sava Re | 215,914,974 | 40.3% | 199,405,329 | 44.3% | |||
| Triglav Re | 319,389,312 | 59.7% | 250,292,376 | 55.7% | |||
| Total | 535,304,286 | 100.0% | 449,697,705 | 100.0% |
The insurance market grew by 7.8% (non-life premiums grew by 14.6% and life premiums fell by 14.2%). The Sava Insurance Group operates on the market through a branch of Zavarovalnica Sava, which sells non-life and life insurance in Croatia. In 2023, it ranked 13th among all companies operating in the Croatian insurance market, with a market share of 1.1%.
The Serbian insurance market in 2023 consisted of 16 insurance companies. The non-life insurance business accounted for 81.5% of total insurance premiums in the first nine months of 2023 and life insurance for 18.5%. In the first nine months of 2023, gross premiums written in the Serbian insurance market grew by 16.5% (non-life premiums by 19.3% and life premiums by 6.3%). The Sava Insurance Group is present on the market with the non-life insurance company Sava Neživotno Osiguranje (SRB) and the life insurance company Sava Životno Osiguranje (SRB). Together, the two insurers ranked 10th among all insurers on the market in the first nine months of 2023, with a market share of 3.6%.
The North Macedonian insurance market in 2023 consisted of 17 insurance companies. In 2023, the non-life insurance business accounted for 82.7% of total insurance premiums and life insurance for 17.3%. In 2023, gross premiums in the North Macedonian insurance market grew by 12.3% (non-life premiums by 12.9% and life premiums by 9.4%). The Sava Insurance Group is present on the market with its non-life insurance company, which ranked sixth among all insurers on the market in 2023, with a market share of 8.8%.
The Montenegrin insurance market in 2023 consisted of 9 insurance companies. In 2023, the non-life insurance business accounted for 80.2% of total insurance premiums and life insurance for 19.8%. In 2023, gross premiums written in the Montenegrin insurance market grew by 10.3% (non-life premiums by 10.3% and life premiums by 10.5%). The Sava Insurance Group is present on the market with the non-life insurance company Sava Osiguranje (MNE), which ranked second among all insurers on the market in 2023, with a market share of 17.3%.
Business volume grew by 14.4% to EUR 910.1 million in 2023, mainly driven by growth in non-life and life gross premiums written. In non-life insurance, this growth was generated by higher prices and organic business growth, and in life insurance by strong sales of new policies and additional payments made to existing policies. Business volume increased in all segments.
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Business volume | 910,113,382 | 795,535,596 | 114,577,786 | 114.4 |
Gross written premiums increased by 14.3% to EUR 884.6 million in 2023.
| Gross premiums written by class of business | EUR | 2023 | 2022 | Amount | Share | Amount | Share |
|---|---|---|---|---|---|---|---|
| Property | 201,173,345 | 22.7% | 190,850,080 | 24.7% | |||
| Land motor vehicles | 192,694,694 | 21.8% | 153,629,655 | 19.8% | |||
| Motor vehicle liability | 166,180,679 | 18.8% | 137,553,032 | 17.8% | |||
| Accident, health and assistance | 89,833,560 | 10.2% | 75,076,200 | 9.7% | |||
| General liability | 24,729,085 | 2.8% | 23,368,600 | 3.0% | |||
| Marine, suretyship and goods in transit | 17,488,998 | 2.0% | 14,817,533 | 1.9% | |||
| Other insurance | 3,212,344 | 0.4% | 2,832,415 | 0.4% | |||
| Total non-life |
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Insurance revenue | 697,562,811 | 608,987,793 | 88,575,018 | 114.5 |
| Insurance service expenses | -657,125,518 | -537,510,550 | -119,614,968 | 122.3 |
| Claims incurred | -465,474,154 | -368,309,774 | -97,164,380 | 126.4 |
| Operating expenses | -189,565,020 | -165,031,036 | -24,533,984 | 114.9 |
| Onerous contracts | -2,086,344 | -4,169,740 | 2,083,396 | 50.0 |
| Insurance service result before reinsurance | 40,437,293 | 71,477,243 | -31,039,950 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 43,040,469 | 4,596,174 | 38,444,295 | 936.4 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 83,477,762 | 76,073,417 | 7,404,345 | 109.7 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 27,923,277 | 6,536,061 | 21,387,216 | 427.2 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| -13,304,198 | -9,140,857 | -4,163,341 | 145.5 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 1,192,505 | 1,836,939 | -644,434 | 64.9 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 15,811,584 | -767,857 | 16,579,441 | - |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 25,551,080 | 21,404,517 | 4,146,563 | 119.4 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| -51,014,545 | -44,382,684 | -6,631,861 | 114.9 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 2,286,209 | 2,279,735 | 6,474 | 100.3 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 3,501,264 | 3,894,917 | -393,653 | 89.9 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 79,613,353 | 58,502,045 | 21,111,308 | 136.1 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| -14,956,182 | -11,578,604 | -3,377,578 | 129.2 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 64,657,171 | 46,923,441 | 17,733,730 | 137.8 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 93.1% | 92.6% | +0.5 p.p. | - |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 64.5% | 64.4% | +0.1 p.p. | - |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 28.6% | 28.2% | +0.4 p.p. | - |
2.1%
0.6%
+1.5 p.p.
-
10.8%
8.3%
+2.5 p.p.
-
The insurance service result before reinsurance was EUR 31.0 million lower than in the previous year, reflecting the high volume of claims related to the summer extreme weather events. Reinsurance protection significantly mitigated the impact of these claims on the insurance service result, and the Group also significantly increased its insurance revenue, both of which contributed to a stronger insurance service result than in the previous year. It is also important to note that the insurance service result in 2022 was impacted by inflation and the resulting increase in claims incurred.
Insurance revenue grew by EUR 88.6 million, driven by premium growth, particularly in the non-life business, where it increased by EUR 72.3 million due to price increases resulting from claims inflation and due to organic growth. In the reinsurance segment, revenue was up EUR 11.2 million due to a change in its composition towards the more profitable non-proportional business. In the life segment, revenue increased by EUR 4.9 million due to growth in gross premiums and a shift in the portfolio composition towards life risk insurance products. These products have a higher share of premiums counted as insurance revenue compared to those with a savings component.
Claims incurred increased by EUR 97.2 million in 2023. The non-life business accounted for the majority of the increase, at EUR 82.9 million, mainly due to the extreme summer weather events that affected Slovenia, Croatia and Serbia.
| Claims incurred by class of business | EUR 2023 | Amount | Share | Amount | Share |
|---|---|---|---|---|---|
| Property | 166,525,223 | 35.8% | 119,448,121 | 32.4% | |
| Land motor vehicles | 140,695,828 | 30.2% | 101,518,032 | 27.6% | |
| Motor vehicle liability | 85,356,588 | 18.3% | 81,936,483 | 22.2% | |
| Accident, health and assistance | 44,048,404 | 9.5% | 34,379,109 | 9.3% | |
| General liability | 6,716,482 | 1.4% | 15,697,709 | 4.3% | |
| Other insurance | 4,577,072 | 1.0% | 2,313,336 | 0.6% | |
| Total non-life | 447,919,597 | 96.2% | 355,292,790 | 96.5% | |
| Total life | 17,554,557 | 3.8% | 13,016,984 | 3.5% | |
| Total | 465,474,154 | 100.0% | 368,309,774 | 100.0% |
Acquisition costs were up EUR 12.1 million due to higher sales, while administrative costs increased by EUR 12.4 million, particularly due to higher business volume and general price increases driven by inflation.
Expenses for onerous contracts decreased significantly (by EUR 2.1 million, or 50.0%). In 2022, the life business incurred more of these expenses as part of the portfolio moved from profitable to unprofitable following the update of mortality assumptions. However, in 2023, the trend was reversed due to the improved profitability of the non-life business.
The reinsurance service result for 2023 showed a higher surplus due to the difference in the volume of claims between the two years that triggered the reinsurance protection. In 2023, the amounts recovered from reinsurance were significantly higher than in the previous year because of the severe summer weather events.
| 2023 | 2022 | Change | Index | |
|---|---|---|---|---|
| Net investment result | 27,923,277 | 6,536,061 | 21,387,216 | 427.2 |
| Net insurance finance result | -13,304,198 | -9,140,857 | -4,163,341 | 145.5 |
| Net exchange gains | 1,192,505 | 1,836,939 | -644,434 | 64.9 |
| Finance result | 15,811,584 | -767,857 | 16,579,441 | - |
The net investment result was EUR 27.9 million, up EUR 21.4 million from the previous year. Consequently, the return on the investment portfolio was also higher, at 2.1%. The result improved mainly due to higher interest income from investing at higher interest rates and the net increase in the fair value of FVTPL investments.
| EUR | 2023 | 2022 | Change |
|---|---|---|---|
| Interest income at effective interest rate | 20,603,022 | 15,437,863 | 5,165,159 |
| Change in fair value of FVTPL assets | 9,487,368 | 10,274,947 | -787,579 |
| Gains on disposal of FVTPL assets | 138,529 | 362,779 | -224,250 |
| Gains on disposal of other IFRS asset categories | 67,299 | 1,307,558 | -1,240,259 |
| Income from dividends and shares – other investments | 1,090,425 | 1,312,273 | -221,848 |
| Movement in expected credit losses (ECL) | 1,028,500 | 1,356,121 | -327,621 |
| Other income | 4,637,235 | 4,840,772 | -203,537 |
| Income relating to investment portfolio | 37,052,378 | 34,892,313 | 2,160,065 |
| Change in fair value of FVTPL assets | 6,526,739 | 22,054,962 | -15,528,223 |
| Losses on disposal of FVTPL assets | 164,670 | 358,481 | -193,811 |
| Losses on disposal of other IFRS asset categories | 880,674 | 1,715,175 | -834,501 |
| Impairment losses on other investments | 216 | 0 | 216 |
| Movement in expected credit losses (ECL) | 738,818 |
| 1,027,660 | -288,842 |
|---|---|
| Other expenses | 817,984 |
| 3,199,974 | -2,381,990 |
| Expenses relating to investment portfolio | 9,129,101 |
| 28,356,252 | -19,227,151 |
| Net investment result | 27,923,277 |
| 6,536,061 | 21,387,216 |
| Net income and expenses from subsidiaries and associates | 2,286,209 |
| 2,279,735 | 6,474 |
| Net investment income relating to the investment portfolio | 30,209,486 |
| 8,815,796 | 21,393,690 |
| Return on investment portfolio | 2.1% |
| 0.6% | |
| 1.5 p.p. |
The net insurance finance result decreased by EUR 4.2 million due to higher discount rates, which reflect the increase in market interest rates.
Net other operating expenses
Non-insurance revenue increased by EUR 4.1 million to EUR 25.6 million. The major part of this revenue originated from asset management (EUR 19.6 million), where revenue increased by EUR 1.6 million due to more assets under management in pension funds and in funds of a mutual fund management company. The remainder (EUR 6.0 million) was mainly generated by assistance services, where revenue increased by EUR 2.5 million as a result of a higher volume of assistance cases and inflation-adjusted price increases.
Other operating expenses amounted to EUR 51.0 million, up EUR 6.6 million. These expenses included non-attributable expenses (EUR 29.4 million) and expenses of non-insurance companies (EUR 21.6 million). The rise in personnel costs, an increase in the volume of assistance cases due to higher claims volume and inflation, and increased IT service costs were the main reasons for this.
Net profit increased by EUR 21.1 million to EUR 79.6 million in 2023. This increase was primarily due to the improved finance result driven by favourable financial markets and partly due to the insurance service result explained earlier. All operating segments ended 2023 with higher profits before tax than in 2022. In absolute terms, the non-life business saw the largest increase, up EUR 10.1 million, followed by the life business, which improved by EUR 5.7 million, the reinsurance business by EUR 2.3 million, pensions and assets under management by EUR 2.6 million and the “other” segment by EUR 0.3 million.
Composition of profit or loss before tax by segment
In line with growth in profit before tax, the net profit also increased by EUR 17.7 million. As a result, the return on equity was higher, at 10.8%.
| 2023 | 2022 | Change | ||
|---|---|---|---|---|
| Combined ratio | 93.1% | 92.6% | +0.5 p.p. | |
| Loss ratio | 64.6% | 64.4% | +0.2 p.p. | |
| Expense ratio | 28.6% | 28.2% | +0.4 p.p. |
+19.9% Gross premiums written
+48.1% Profit before tax
EUR
| Year | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Gross premiums written | 572,614,385 | 477,626,640 | 94,987,745 | 119.9 |
| EU | 474,543,582 | 397,063,411 | 77,480,171 | 119.5 |
| Non-EU | 98,070,803 | 80,563,229 | 17,507,574 | 121.7 |
| Insurance service result | 39,492,006 | 33,769,867 | 5,722,140 | 116.9 |
| EU | 32,526,322 | 27,765,359 | 4,760,963 | 117.1 |
| Non-EU | 6,965,685 | 6,004,508 |
| EU | 4,735,833 | -1,521,324 | 6,257,157 |
|---|---|---|---|
| Non-EU | 2,456,244 | 1,561,983 | 894,261 |
| -15,568,022 | -12,802,482 | -2,765,540 | 121.6 | |
|---|---|---|---|---|
| EU | -11,934,216 | -11,181,301 | -752,915 | 106.7 |
| Non-EU | -3,633,807 | -1,621,181 | -2,012,625 | 224.1 |
| 31,112,307 | 21,008,044 | 10,104,264 | 148.1 | |
|---|---|---|---|---|
| EU | 25,324,185 | 15,062,734 | 10,261,451 | 168.1 |
| Non-EU | 5,788,122 | 5,945,310 | -157,188 | 97.4 |
| 95.4% | 95.4% | +0.0 p.p. | |
|---|---|---|---|
| EU | 95.3% | 95.6% | -0.3 p.p. |
| Non-EU | 96.1% | 93.9% | +2.2 p.p. |
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Slovenia | 457,932,561 | 381,780,244 | 76,152,317 | 119.9 |
| Croatia | 17,140,681 | 15,458,348 | 1,682,333 | 110.9 |
| EU | 475,073,243 | 397,238,592 | 77,834,650 | 119.6 |
| Serbia | 39,541,716 | 29,625,362 | 9,916,355 |
| Country | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Montenegro | 20,670,382 | 17,392,666 | 3,277,715 | 118.8 |
| North Macedonia | 20,451,548 | 17,432,536 | 3,019,012 | 117.3 |
| Kosovo | 17,436,254 | 16,134,131 | 1,302,124 | 108.1 |
| Non-EU | 98,099,900 | 80,584,694 | 17,515,206 | 121.7 |
| Total non-life | 573,173,143 | 477,823,287 | 95,349,856 | 120.0 |
Gross written premiums of the non-life segment increased by EUR 95.0 million, or 19.9%. Growth was achieved in all markets, with a 19.5% increase in the EU markets and a 21.7% increase in the non-EU markets. The motor insurance market saw the highest nominal growth across all markets, primarily due to an increase in the price of insurance services in response to the rise in the price of car repair services. In addition, this growth was driven by the acquisition of new policyholders and an upswing in the number of policies sold. In the EU markets, motor insurance experienced the strongest growth in the personal lines segment. In the non-EU markets, in addition to motor premiums, health (up 50.3%) and property (up 18.0%) insurance premiums increased significantly.
As a result, the share of motor insurance in the composition of gross premiums by class of business increased in 2023 compared to 2022.
| Insurance service result | EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|---|
| Insurance revenue | 526,708,126 | 454,382,860 | 72,325,266 | 115.9 | |
| EU | 436,996,472 | 380,796,268 | 56,200,204 | 114.8 | |
| Non-EU | 89,711,654 | 73,586,592 | 16,125,062 | 121.9 | |
| Insurance service expenses | -529,588,320 | -425,530,465 | -104,057,855 | 124.5 | |
| Claims incurred | -376,489,416 | -293,595,276 | -82,894,140 | 128.2 | |
| EU | -324,341,925 | -255,758,019 | -68,583,906 | 126.8 | |
| Non-EU | -52,147,491 | -37,837,257 | -14,310,234 | 137.8 | |
| Operating expenses | -150,333,728 | -129,728,534 | -20,605,194 | 115.9 | |
| EU | -118,758,015 | -102,624,831 | -16,133,184 | 115.7 | |
| Non-EU | -31,575,713 | -27,103,703 |
| -4,472,010 | 116.5 | |||
|---|---|---|---|---|
| -2,765,176 | -2,206,655 | -558,521 | 125.3 | |
| EU | -2,856,770 | -2,185,670 | -671,100 | 130.7 |
| Non-EU | 91,594 | -20,985 | 112,579 | -436.5 |
| -2,880,194 | 28,852,395 | -31,732,589 | -10.0 | |
|---|---|---|---|---|
| EU | -8,960,238 | 20,227,748 | -29,187,986 | -44.3 |
| Non-EU | 6,080,044 | 8,624,647 | -2,544,603 | 70.5 |
| 42,372,200 | 4,917,472 | 37,454,729 | 861.7 | |
|---|---|---|---|---|
| EU | 41,486,560 | 7,537,611 | 33,948,949 | 550.4 |
| Non-EU | 885,641 | -2,620,139 | 3,505,779 | -33.8 |
| 39,492,006 | 33,769,867 | 5,722,140 | 116.9 | |
|---|---|---|---|---|
| EU | 32,526,322 | 27,765,359 | 4,760,963 | 117.1 |
| Non-EU | 6,965,685 | 6,004,508 | 961,176 | 116.0 |
(EUR 16.1 million). It is important to note that in 2022 the insurance service result was impacted by claims inflation and the resulting increase in claims incurred. Insurance service expenses were up EUR 104.1 million, by EUR 85.4 million in the EU markets and EUR 18.7 million in the non-EU markets. The level of claims incurred was mainly affected by loss events resulting from summer storms and floods. These adverse weather events had the greatest impact on land motor vehicle insurance and property insurance. Operating expenses rose by EUR 20.6 million due to growth in the insurance portfolio, inflationary increases in labour and other costs, and an increase in the statutory fire brigade charge. Expenses for onerous contracts were up EUR 0.6 million due to deterioration in the combined ratio in the property segment resulting from the increased frequency of adverse weather events. Furthermore, the insurance service result was impacted by an improved reinsurance service result. The volume of claims reinsured in 2023 was significantly higher than in the previous year due to summer storms and floods.
| EUR | 2023 | 2022 | Change | Index | |
|---|---|---|---|---|---|
| Net investment result | 10,976,899 | 1,400,265 | 9,576,634 | 783.9 | |
| EU | 7,882,690 | -562,285 | 8,444,975 | -1,401.9 | |
| Non-EU | 3,094,209 | 1,962,550 | 1,131,659 | 157.7 | |
| Net insurance finance result | -3,699,927 | -1,309,186 | -2,390,740 | 282.6 | |
| EU | -3,070,764 | -930,698 | -2,140,067 | 329.9 | |
| Non-EU | -629,162 | -378,489 | -250,674 | 166.2 | |
| Net exchange losses | -88,650 | -50,420 | -38,230 | 175.8 | |
| EU | -79,847 | -28,341 | -51,506 | 281.7 | |
| Non-EU | -8,803 | -22,079 | 13,276 | 39.9 | |
| Finance result | 7,188,323 | 40,659 | 7,147,664 | 17,679.7 | |
| EU | 4,732,079 | -1,521,324 | 6,253,403 | -311.1 | |
| Non-EU | 2,456,244 | 1,561,983 | 894,261 | 157.3 |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| 1.8% | 0.2% | +1.6 p.p. | - |
| EU | 1.5% | -0.1% | +1.6 p.p. |
The financeresult was up EUR 7.1 million due to an improved net investment result. The latter increased by EUR 9.6 million year on year due to the more favourable conditions in financial markets. In 2022, the result was impacted by negative revaluation of equity securities at fair value through profit or loss, whereas in 2023 these securities had a positive impact, mainly due to higher interest income. The net insurance finance result decreased by EUR 2.4 million due to higher discount rates on insurance contracts resulting from the increase in market interest rates. The return on the investment portfolio improved by 1.6 percentage points to 1.8%.
Net other operating expenses mainly comprise non-attributable operating expenses and income not related to the insurance business. In 2023, these net expenses increased by EUR 2.8 million. The majority of the increase in the non-EU markets, which totalled EUR 2.0 million, was attributable to a one-time event that occurred in 2022 with one of the insurers. At that time, the Group received a one-off income as a result of a court case related to a previous major accident that was settled in the insurer’s favour. The remaining EUR 0.8 million mainly relates to higher non-attributable expenses.
Profit before tax increased by EUR 10.1 million to EUR 31.1 million in 2023. As previously stated, the increase was primarily due to the improved finance and insurance service results.
| Combined ratio | 2023 | 2022 | Change |
|---|---|---|---|
| Total | 95.4% | 95.4% | +0.0 p.p. |
| EU | 95.3% | 95.6% | -0.3 p.p. |
| Non-EU | 96.1% | 93.9% | +2.2 p.p. |
| Loss ratio | 2023 | 2022 | Change |
|---|---|---|---|
| Total | 64.0% | 64.0% | -0.0 p.p. |
| EU | 65.4% | 65.8% | -0.4 p.p. |
| Non-EU | 57.0% | 55.0% | +2.0 p.p. |
| Expense ratio | 2023 | 2022 | Change |
|---|---|---|---|
| Total | 31.5% | 31.3% | +0.2 p.p. |
| EU | 29.9% | 29.9% | +0.0 p.p. |
| Non-EU | 39.1% | 38.9% | +0.2 p.p. |
The combined ratio remained at the same level as last year, at 95.4%. The combined ratio improved by 0.3 percentage points in the EU markets but deteriorated by 2.2 percentage points in the non-EU markets. The improvement in the EU markets was driven by a better loss ratio resulting from higher insurance revenue and a more favourable reinsurance service result from the effective reinsurance cover of the storm and flood claims. The decline in the non-EU markets was due to a higher loss ratio caused by claims from the summer storms, some large individual claims, and increased average claims due to claims inflation. The expense ratio remained unchanged. In the non-EU markets, it outperformed in 2022 as a result of the aforementioned extraordinary income with one of the insurers. Without factoring in this one-off income, the expense ratio in the non-EU markets for 2022 would have been 40.7%.
| Gross profit | EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|---|
| Gross premiums written | 185,767,542 | 172,175,270 | 13,592,272 | 107.9 | |
| EU | 174,441,547 | 162,202,436 | 12,239,110 | 107.5 | |
| Non-EU | 11,325,996 | 9,972,834 | 1,353,162 | 113.6 | |
| Insurance service result | 20,434,704 |
| 19,487,106 | 947,598 | 104.9 | EU | |
|---|---|---|---|---|
| 18,724,682 | 18,842,269 | -117,587 | 99.4 | Non-EU |
| 1,710,022 | 644,837 | 1,065,185 | 265.2 | Finance result |
| 6,369,936 | 1,176,784 | 5,193,153 | 541.3 | EU |
| 5,799,629 | 719,483 | 5,080,146 | 806.1 | Non-EU |
| 570,307 | 457,300 | 113,007 | 124.7 | Net other operating expenses |
| -6,181,819 | -5,748,157 | -433,662 | 107.5 | EU |
| -5,669,054 | -5,715,108 | 46,054 | 99.2 | Non-EU |
| -512,766 | -33,050 | -479,716 | 1,551.5 | Profit before tax |
| 20,622,821 | 14,915,732 | 5,707,089 | 138.3 | EU |
| 18,855,257 | 13,846,644 | 5,008,613 | 136.2 | Non-EU |
| 1,767,563 | 1,069,088 | 698,476 | 165.3 |
| Contractual service margin (CSM) | 141,629,289 | 124,608,539 | 17,020,750 | 113.7 |
|---|---|---|---|---|
| EU | 132,599,225 | 115,335,766 | 17,263,459 | 115.0 |
| Non-EU | 9,030,064 | 9,272,773 | -242,709 | 97.4 |
| Slovenia | 172,197,851 |
|---|---|
| Country | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Croatia | 2,243,695 | 2,047,204 | 196,491 | 109.6 |
| EU | 174,441,547 | 162,202,436 | 12,239,110 | 107.5 |
| Serbia | 7,062,615 | 5,615,038 | 1,447,577 | 125.8 |
| Kosovo | 4,263,381 | 4,357,796 | -94,415 | 97.8 |
| Non-EU | 11,325,996 | 9,972,834 | 1,353,162 | 113.6 |
| Total life | 185,767,542 | 172,175,270 | 13,592,272 | 107.9 |
Gross written premiums of the EU-based life insurers increased by 7.5% year on year due to higher sales of both life risk and unit-linked insurance products. The non-EU life insurers managed to increase gross written premiums by a remarkable 13.6%. In addition to maintaining the existing portfolio, sales of life risk and unit-linked insurance products, which had not been sold in the previous year, also increased.
The rise in the share of unit-linked insurance was a result of the increased sales of unit-linked policies in Slovenia and the maturing of traditional life savings policies, which are no longer available for purchase in Slovenia.
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Insurance revenue | 66,403,513 | 61,496,184 | 4,907,329 | 108.0 |
| EU | 59,872,919 | 56,462,308 | 3,410,611 | 106.0 |
| Non-EU | 6,530,594 | 5,033,876 | 1,496,718 | 129.7 |
| Insurance service expenses | -45,730,102 | -41,518,952 | -4,211,150 | 110.1 |
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Net investment result | 10,059,429 | 4,460,089 | 5,599,340 | 225.5 |
| EU | Non-EU | |
|---|---|---|
| Insurance service result | 20,434,704 | 1,710,022 |
| Change | 19,487,106 | 644,837 |
| Index | 104.9 | 265.2 |
The insurance service result improved by EUR 0.9 million. In the non-EU markets, the result increased due to portfolio growth and lower-than-expected realised claims, whereas in the EU markets it decreased by EUR 0.1 million due to a higher volume of claims incurred.
Insurance revenue grew by 6.0% in the EU markets due to increased sales and a shift in premium composition towards life risk insurance products. These products have a higher share of premiums counted as insurance revenue compared to those with a savings component. The Group’s insurance revenue outside the EU increased by 29.7% due to higher sales in the Serbian market and updates to actuarial models and assumptions.
| 2023 | 2022 | Change | Index | |
|---|---|---|---|---|
| 9,103,691 | 3,709,640 | 5,394,050 | 245.4 | |
| Non-EU | 955,738 | 750,448 | 205,290 | 127.4 |
| Net insurance finance result | -3,702,612 | -3,242,471 | -460,141 | 114.2 |
| EU | -3,302,541 | -2,974,900 | -327,641 | 111.0 |
| Non-EU | -400,071 | -267,571 | -132,500 | 149.5 |
| Net exchange gains/losses | 13,120 | -40,834 | 53,954 | -32.1 |
| EU | -1,520 | -15,257 | 13,737 | 10.0 |
| Non-EU | 14,640 | -25,577 | 40,217 | -57.2 |
| Finance result | 6,369,936 | 1,176,784 | 5,193,153 | 541.3 |
| EU | 5,799,629 | 719,483 | 5,080,146 | 806.1 |
| Non-EU | 570,307 | 457,300 | 113,007 | 124.7 |
| 2023 | 2022 | Change | |
|---|---|---|---|
| 2.0% | 0.8% | +1.2 p.p. | |
| EU | 1.9% | 0.7% | +1.2 p.p. |
| Non-EU | 2.9% | 2.4% | +0.5 p.p. |
The finance result was up EUR 5.2 million, mainly due to the improved net investment result, which was EUR 5.6 million higher in 2023 because of more favourable conditions in financial markets. In 2022, the result was impacted by negative revaluation of equity securities at fair value through profit or loss, whereas in 2023 these securities had a positive impact, mainly due to higher interest income. The return on the investment portfolio increased to 2.0%, in line with the improved net investment result.
On the other hand, the more favourable financial market conditions had a negative impact on the net insurance finance result, which decreased by EUR 0.5 million due to the rise in discount rates.
Net other operating expenses increased by EUR 0.4 million as a result of the updated methodology for calculating the insurance service result for the non-EU insurers in 2023. Non-attributable expenses also increased due to inflation.
The increase in profit before tax of 38.3% was primarily attributable to the improved finance result in the EU markets from the previous year. Meanwhile, the increase in the non-EU markets was mainly a reflection of the improved insurance service result.
| Index | Contractual service margin (CSM) | 2022 | Change | Index |
|---|---|---|---|---|
| EU | 141,629,289 | 124,608,539 | 17,020,750 | 113.7 |
| Non-EU | 132,599,225 | 115,335,766 | 17,263,459 | 115.0 |
| 9,030,064 | 9,272,773 | -242,709 | 97.4 |
The 13.7% growth in the contractual service margin was achieved through new business written, maintaining the profitability of the life insurance portfolio. The expected higher future profits were also driven by positive developments in financial markets, which boosted the value of unit-linked life insurance assets and, consequently, the future income from managing these assets. The CSM also increased due to additional single-premium payments to existing policies. The CSM on new business written was EUR 23.3 million, exceeding its release to profit (EUR 17.2 million) by 35.6%, which reflects strong sales and increased profitability.
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Gross premiums written | 122,966,992 | 120,876,083 | 2,090,909 | 101.7 |
| Insurance service result | 23,442,000 | 22,651,373 | 790,626 | 103.5 |
| Finance result | 1,581,486 | -898,616 | 2,480,102 | - |
| Net other operating expenses | -2,422,611 | -965,742 | -1,456,869 | 250.9 |
| Profit before tax | 20,699,290 | 18,369,768 | 2,329,522 | 112.7 |
| Combined ratio | 81.6% | 79.2% | +2.4 p.p. | - |
| Index | Contractual service margin (CSM) | 2022 | Change | Index |
|---|---|---|---|---|
| 5,455,348 | 4,671,184 | 784,164 | 116.8 |
Gross premiums written grew by EUR 2.1 million, the most important being the positive shift in premium composition towards more profitable non-proportional contracts. The premiums for these contracts increased by 19.4%. This growth in gross written premiums was achieved through both rate increases in line with global reinsurance market developments and organic volume growth.
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Insurance revenue | 104,029,407 | 92,799,955 | 11,229,632 | 112.1 |
| Insurance service expenses | -81,494,383 | -70,317,410 |
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Net investment result | 5,521,148 | 1,545,065 | 3,976,083 | 357.3 |
| Net insurance finance result | -5,210,186 | -4,386,386 | -823,799 | 118.8 |
| Net exchange gains | 1,270,540 | 1,942,705 | -672,165 | 65.4 |
| Finance result | 1,581,486 | -898,616 | 2,480,102 | - |
| 2023 | 2022 | Change | Index |
|---|---|---|---|
| Return on investment portfolio | 2.1% | 0.6% | +1.5 p.p. |
The finance result improved as a result of a stronger net investment result, which increased by EUR 4.0 million in 2023 due to higher interest income (reinvestment at higher interest rates) and positive revaluation of equity investments at fair value through profit or loss. As a result, the return on the investment portfolio was also higher, at 2.1%. The net insurance finance result was lower in 2023 due to higher discount rates, reflecting the changed situation in financial markets.
Net other operating expenses rose by EUR 0.9 million, mainly driven by higher non-attributable expenses resulting from inflation and development activities.
Profit before tax increased by EUR 2.3 million as a result of the improved insurance service and net investment results.
| 2023 | 2022 | Change |
|---|---|---|
| Combined ratio | 81.6% | 79.2% |
67.5%
66.2%
+1.3 p.p.
14.1%
13.0%
+1.1 p.p.
The combined ratio remained at a very favourable level but increased due to both the loss ratio (impacted by a major loss event at the beginning of the year) and the expense ratio (impacted by higher acquisition and other operating expenses).
As at 31 December 2023, the contractual service margin totalled EUR 5.5 million. In 2023, the CSM increased by EUR 0.8 million, or 16.8%. The newly recognised CSM was EUR 5.4 million lower than the CSM released, reflecting a higher volume of recognised non-proportional reinsurance contracts in 2023. The level of CSM was mainly positively impacted by onerous contracts that became profitable during the reporting period (EUR 1.8 million) as a result of the positive development of the proportional portfolio for the previous underwriting years.
+9.0% Asset management revenue
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Business volume | 22,802,778 | 21,434,886 | 1,367,892 | 106.4 |
| Asset management revenue | 19,589,410 | 17,978,588 | 1,610,822 | 109.0 |
| Gross premiums written (annuities) | 3,213,368 | 3,456,298 | -242,930 | 93.0 |
| Insurance revenue | 421,765 | 308,794 | 112,971 | 136.6 |
| Claims incurred | -85,420 | -66,524 | -18,896 | 128.4 |
| Operating expenses | -13,483,703 | -11,977,899 | -1,505,805 | 112.6 |
| Finance result of investments and insurance contracts | 674,344 | -1,072,171 | 1,746,515 | - |
| Net other operating income/expenses | 399,810 | -302,421 | 702,231 | -132.2 |
| Profit before tax | 7,516,206 | 4,868,367 | 2,647,838 | 154.4 |
| Cost-to-income ratio (CIR) | 67.0% | 65.2% | +1.8 p.p. | - |
| EUR | 31 December 2023 | 31 December 2022 | Change | Index |
|---|---|---|---|---|
| Assets under management | 1,803,264,665 | 1,507,752,304 | 295,512,361 | 119.6 |
Operating expenses rose by EUR 1.5 million due to the inflationary effects, which led to higher service and personnel costs. As a result, the cost-to-income ratio, which excludes one-off income, increased by 1.8 percentage points.
The finance result improved by EUR 1.7 million due to a positive revaluation of equity investments at fair value through profit or loss of EUR 2.2 million. On the other hand, finance expenses for insurance contracts increased by EUR 0.5 million due to higher discount rates. The rate of investment return was also higher, at 2.7%.
Net other operating income/expenses improved by EUR 0.7 million as a result of the sale of a property and the release of provisions for non-achievement of guaranteed returns.
Profit before tax was up EUR 2.6 million, primarily due to higher asset management revenue and an improved investment result driven by favourable financial market conditions.
Assets under management rose by EUR 295.5 million. The main reasons for this increase were the high net inflows into the funds and the 10.2% return achieved. Assets under management increased for all companies in this segment.
| EUR | 2023 | 2022 | Index |
|---|---|---|---|
| Opening balance of fund assets | 1,507,752,304 | 1,541,670,574 | 97.8 |
| Fund inflows | 195,800,605 | 171,692,469 | 114.0 |
| Fund outflows | -50,622,078 | -59,758,943 | 84.7 |
| Asset transfers | -15,184,025 | -13,798,074 | 110.0 |
| Net investment income of funds | 168,060,395 | -128,126,162 | - |
| Entry and exit charges | -2,585,551 | -2,397,556 | 107.8 |
| Exchange differences and fair value reserve | 43,015 | -1,530,006 | - |
| Closing balance of fund assets | 1,803,264,665 | 1,507,752,304 | 119.6 |
| Index in relation to period start | 119.6 | 97.8 | - |
| EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Sava Pokojninska | 179,443,359 | 165,831,325.5 |
| Sava Penzisko Društvo | 995,217,064 | 847,491,761.5 |
| Sava Infond | 628,604,242 | 494,429,217.2 |
| Total | 1,803,264,665 | 1,507,752,304 |
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Income | 8,270,833 | 5,722,565 | 2,548,268 | 144.5 |
| Expenses | -8,608,103 | -6,382,431 | -2,225,671 | 134.9 |
| Profit or loss before tax | -337,270 | -659,866 | 322,597 | - |
Revenue grew by EUR 2.5 million due to higher business volumes in assistance and healthcare services. In 2022, revenue also included the one-time sale of a subsidiary. Without factoring this in, revenue growth in 2023 would have been EUR 1 million higher.
Expenses were up EUR 2.2 million due to higher business volumes and inflationary pressures. Expenses of this segment in both periods also included subordinated debt expenses of EUR 2.9 million.
The loss of the segment decreased by EUR 0.3 million due to higher profits from assistance and healthcare services.
The following are explanations of assets and liabilities that are relevant to the understanding of the Group’s financial position.
| EUR | 31 December 2023 | 31 December 2022 | Change | Index |
|---|---|---|---|---|
| Equity | 585,663,613 | 531,463,677 | 54,199,936 | 110.2 |
| Contractual service margin (CSM) | 155,307,485 | 136,396,088 | 18,911,397 | 113.9 |
| Risk adjustment | 90,366,848 | 94,005,064 | -3,638,216 | 96.1 |
| Investment portfolio position | 1,503,282,095 | 1,415,231,399 | 88,050,696 | 106.2 |
| Total assets | 2,568,546,136 | 2,312,140,248 | 256,405,888 | 111.1 |
| Assets under management | 2,411,800,064 | 2,006,528,480 | 405,271,584 | 120.2 |
Equity amounted to EUR 585.7 million, up EUR 54.2 million compared to the end of 2022. The increase in the profit for 2023 and a positive change in other comprehensive income were the primary reasons for the overall increase, while the decrease was mainly due to the dividend payouts.
Thus, the Group’s estimated solvency position as at 31 December 2023 shows that the Group is well capitalised, with a solvency ratio of between 188% and 194% (31 December 2022: 183%). The Group thus has a solvency ratio well above the regulatory requirement of 100% and is well capitalised according to its internal criteria, which define an optimal solvency ratio between 170% and 210%.
The contractual service margin (CSM) is an estimate of future profits from insurance contracts that relate to future periods and have not yet been recognised in profit or loss. As at 31 December 2023, it totalled EUR 155.3 million (net of reinsurance, EUR 149.4 million). The majority of the contractual service margin (EUR 141.6 million, or 91.2% of the total CSM) arose from the life business, followed by the non-life business with EUR 6.3 million (4.1%) and the reinsurance business with EUR 5.5 million (3.5%), with the remainder attributable to the pensions business (EUR 1.9 million, or 1.2%). In 2023, the contractual service margin increased by EUR 18.9 million, or 13.9%. In the life business, the increase was EUR 17.0 million, or 13.7%. The newly written contracts had a slightly higher contractual service margin than the amount released to profit or loss (specifically, the newly recognised CSM was EUR 46.7 million, whereas the release was EUR 44.9 million). In the life segment, the newly recognised CSM exceeded the release by EUR 6.1 million, and in the reinsurance segment the newly recognised CSM was EUR 5.4 million lower than the release due to the volume of non-proportional reinsurance contracts recognised in 2023. The increase in the contractual service margin was also positively affected by the change in future cash flow assumptions of EUR 15.4 million (primarily in the life segment) due to improved financial market conditions and additional single-premium payments to existing policies. The remainder of the change related to interest and foreign exchange differences.
As at 31 December 2023, the risk adjustment was EUR 90.4 million, down EUR 3.6 million compared to the previous year. Around two-thirds of the risk adjustment (EUR 55.8 million) stems from liabilities for claims incurred, mainly in the non-life business (EUR 39.0 million), followed by reinsurance (EUR 16.3 million) and the non-life business (EUR 0.6 million). This part of the risk adjustment decreased by EUR 4.3 million, or 7.1%.
The investment portfolio of the Sava Insurance Group is made up of financial investments, investment property, financial investments in associates and joint ventures, and cash and cash equivalents.
| EUR | 31 December 2023 | 31 December 2022 | Change | Index |
|---|---|---|---|---|
| Deposits and CDs | 25,616,171 | 18,848,261 | 6,767,910 | 135.9 |
| Government bonds | 818,836,368 | 721,024,386 | 97,811,982 | 113.6 |
| Corporate bonds | 457,974,606 | 433,777,269 | 24,197,337 | 105.6 |
| Shares | 21,754,273 | 24,883,924 | -3,129,651 | 87.4 |
| Mutual funds | 18,564,549 | 22,157,732 | -3,593,182 | 83.8 |
| Infrastructure funds | 57,339,858 | 53,856,376 | 3,483,482 | 106.5 |
| Real estate funds | 13,888,193 | 16,497,061 | -2,608,868 | 84.2 |
| Loans granted | 754,141 | 1,194,821 | -440,680 | 63.1 |
| Total financial investments | 1,414,728,159 | 1,292,239,830 | 122,488,329 | 109.5 |
| Financial investments in associates | 23,834,619 | 21,856,109 | 1,978,510 |
| Investment property | 24,890,278 | 22,795,759 | 2,094,519 |
|---|---|---|---|
| Cash and cash equivalents | 39,829,039 | 78,339,699 | -38,510,660 |
| Total investment portfolio | 1,503,282,095 | 1,415,231,397 | 88,050,699 |
The investment portfolio increased by EUR 88.0 million compared to year-end 2022. The major change in the value of investments was mainly in government and corporate bonds, as available funds from operations and investment maturities and disposals were invested mainly in these types of assets. The level of cash and cash equivalents decreased by almost half as cash was invested in higher-yielding assets. The value of shares and mutual funds fell slightly as a result of the disposals.
| EUR | 31 December 2023 | Share as at 31 December 2023 | 31 December 2022 | Share as at 31 December 2022 | Change in share (p.p.) |
|---|---|---|---|---|---|
| Fixed-rate financial investments | 1,302,427,145 | 86.6% | 1,173,649,916 | 82.9% | 3.7 |
| Infrastructure funds | 57,339,858 | 3.8% | 53,856,376 | 3.8% | 0.0 |
| Cash and cash equivalents | 39,827,379 | 2.6% | 78,339,699 | 5.5% | -2.9 |
| Property | 24,890,278 | 1.7% | 22,795,759 | 1.6% | 0.0 |
| Financial investments in associates | 23,834,619 | 1.6% | 21,856,109 | 1.5% | 0.0 |
| Shares | 21,754,273 | 1.4% | 24,883,924 | 1.8% | -0.3 |
| Mutual funds | 18,564,549 | 1.2% | 22,157,732 | 1.6% | -0.3 |
| Real estate funds | 13,888,193 | 0.9% | 16,497,061 | 1.2% | -0.2 |
| Loans granted | 754,141 | 0.1% | 1,194,821 | 0.1% | 0.0 |
| Total | 1,503,280,435 | 100.0% | 1,415,231,397 | 100.0% | 0.0 |
| EUR | 31 December 2023 | Share as at 31 December 2023 | 31 December 2022 | Share as at 31 December 2022 | Change in share (p.p.) |
|---|---|---|---|---|---|
| Government bonds | 760,045,073 | 50.6% | 679,225,272 | 48.0% | 2.6 |
| Regular corporate bonds | 374,739,651 | 24.9% | 373,372,829 | 26.4% | -1.5 |
| Government-guaranteed bonds | 59,038,019 | 3.9% | 55,047,777 | 3.9% | 0.0 |
| Covered bonds | 52,439,089 | 3.5% | 14,476,732 | 1.0% | 2.5 |
| Subordinated bonds | 30,549,141 | 2.0% | 32,679,047 | 2.3% | -0.3 |
| Deposits | 25,616,171 | 1.7% | 18,848,260 | 1.3% | 0.4 |
| Total | 1,302,427,144 | 86.6% | 1,173,649,918 | 82.9% | 3.7 |
| EUR | 31 December 2023 | 31 December 2022 | Change | Index |
|---|---|---|---|---|
| Assets held in pension company savings funds | 1,174,660,423 | 1,013,323,087 | 161,337,336 | 115.9 |
| Assets under management with a fund management company | 628,604,242 | 494,429,217 | 134,175,025 | 127.1 |
| Assets held for the benefit of policyholders who bear the investment risk | 608,535,399 | 498,776,176 | 109,759,223 | 122.0 |
| Assets under management | 2,411,800,064 | 2,006,528,480 | 405,271,584 | 120.2 |
Assets under management amounted to EUR 2,411.8 million, up 20.2%. This growth was driven both by an increase in fund returns resulting from favourable developments in financial markets and by positive net inflows into all three types of funds (pension funds, funds of a mutual fund management company and unit-linked funds).
As at 31 December 2023, the Sava Insurance Group held EUR 585.7 million in shareholders’ equity and EUR 75.0 million in subordinated liabilities. In October 2019, the parent company issued subordinated bonds with a scheduled maturity in 2039 and an early recall option for 7 November 2029. The bond is admitted to trading on the regulated market of the Luxembourg Stock Exchange. As at 31 December 2023, the market price of the bond was 77.717% and the market value EUR 58,702,709 (31 December 2022: the market price was 74.499% and the market value EUR 56,290,346).
Income statement by segment
| EUR | Non-life, EU |
|---|---|
| Category | Non-life, non-EU | Life, EU | Life, non-EU | Reinsurance | Pensions and asset management | Other | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||
| Insurance revenue | 436,996,472 | 380,796,268 | 89,711,654 | 73,586,592 | 59,872,919 | 56,462,308 | 6,530,594 | 5,033,876 | 104,029,407 | 92,799,955 | 421,765 | 308,794 | 0 | 0 | 697,562,811 | 608,987,793 |
| Insurance service expenses | -445,956,710 | -360,568,520 | -83,631,610 | -64,961,945 | -40,909,530 | -37,129,913 | -4,820,572 | -4,389,039 | -81,494,383 | -70,317,410 | -312,713 | -143,723 | 0 | 0 | -657,125,518 | -537,510,550 |
| Claims incurred | -324,341,925 | -255,758,019 | -52,147,491 | -37,837,257 | -15,502,210 | -11,447,246 | -1,966,927 | -1,503,214 | -71,430,181 | -61,697,514 | -85,420 | -66,524 | 0 | 0 | -465,474,154 | -368,309,774 |
| Operating expenses | -118,758,015 | -102,624,831 | -31,575,713 | -27,103,703 | -25,752,177 | -23,970,652 | -3,047,991 | -2,532,069 | -10,318,051 | -8,703,623 | -113,073 | -96,158 | 0 | 0 |
| -189,565,020 | -165,031,036 | -2,856,770 | -2,185,670 | 91,594 | -20,985 | 344,857 | -1,712,015 | 194,346 | -353,756 | 253,849 | 83,727 | -114,220 | 18,959 | 0 | 0 | -2,086,344 | -4,169,740 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| -8,960,238 | 20,227,748 | 6,080,044 | 8,624,647 | 18,963,389 | 19,332,395 | 1,710,022 | 644,837 | 22,535,024 | 22,482,545 | 109,052 | 165,071 | 0 | 0 | 40,437,293 | 71,477,243 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 41,486,560 | 7,537,611 | 885,641 | -2,620,139 | -238,707 | -490,126 | 0 | 0 | 906,976 | 168,828 | 0 | 0 | 0 | 0 | 43,040,469 | 4,596,174 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 32,526,322 | 27,765,359 | 6,965,685 | 6,004,508 | 18,724,682 | 18,842,269 | 1,710,022 | 644,837 | 23,442,000 | 22,651,373 | 109,052 | 165,071 | 0 | 0 | 83,477,762 | 76,073,417 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 7,882,690 | -562,285 | 3,094,209 | 1,962,550 | 9,103,691 | 3,709,640 | 955,738 | 750,448 | 5,521,148 | 1,545,065 | 1,365,801 | -869,358 | 0 | 0 | 27,923,277 | 6,536,061 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| -3,070,764 | -930,698 | -629,162 | -378,489 | -3,302,541 | -2,974,900 | -400,071 | -267,571 | -5,210,202 | -4,386,386 | -691,457 | -202,813 | 0 | 0 | -13,304,198 | -9,140,857 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| -79,847 | -28,341 | -8,803 | -22,079 | -1,520 | -15,257 | 14,640 | -25,577 | 1,270,540 | 1,942,705 | -2,505 | -14,512 | 0 | 0 | 1,192,505 | 1,836,939 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4,732,079 | -1,521,324 | 2,456,244 | 1,561,983 | 5,799,629 | 719,483 | 570,307 | 457,300 | 1,581,486 | -898,616 | 671,839 | -1,086,683 | 0 | 0 | 15,811,584 | -767,857 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 |
|---|---|
| Current Year | Previous Year | Year - 1 | Year - 2 | Year - 3 | Year - 4 | Year - 5 | Year - 6 | Year - 7 | Year - 8 | Year - 9 | Year - 10 | Year - 11 | Year - 12 | Year - 13 | Year - 14 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3,212 | 0 | 0 | 0 | 0 | 0 | 0 | 19,589,410 | 17,978,588 | 5,806,493 | 3,422,717 | 25,395,903 | 21,404,517 | ||||
| Other expenses | -16,349,800 | -14,842,893 | -6,237,092 | -5,742,288 | -5,161,413 | -5,092,506 | -492,069 | -418,355 | -3,693,151 | -2,908,447 | -13,370,630 | -11,881,741 | -5,710,391 | -3,496,453 | -51,014,545 | -44,382,684 |
| Income from investments in subsidiaries and associates | 3,754 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,282,455 | 2,279,735 | 2,286,209 | 2,279,735 | |
| Net other operating income/expenses | 4,411,830 | 3,661,593 | 2,603,285 | 4,117,895 | -507,641 | -622,602 | -20,696 | 385,306 | -631,045 | -474,542 | 516,535 | -306,868 | -2,715,827 | -2,865,865 | 3,656,441 | 3,894,917 |
| Profit or loss before tax | 25,324,185 | 15,062,734 | 5,788,122 | 5,945,310 | 18,855,257 | 13,846,644 | 1,767,563 | 1,069,088 | 20,699,290 | 18,369,768 | 7,516,206 | 4,868,367 | -337,270 | -659,866 | 79,613,354 | 58,502,045 |
| Income tax expense |
The income statement, which is used for the presentation of the operating analysis in the business report, has been restated to present certain categories more clearly and to shorten the line items, as shown in the following table.
EUR
| Income statement | Income statement (restated) | 2023 | 2022 | |
| Revenue from insurance services | 697,562,811 | 608,987,793 | ||
| Expenses from insurance services | -657,125,518 | -537,510,550 | ||
| Net result from insurance contracts | 40,437,293 | 71,477,243 | ||
| Revenue from reinsurance contracts held | 86,112,246 | 43,335,084 | ||
| Expenses for reinsurance contracts held | -43,071,777 | -38,738,910 | ||
| Net result from reinsurance contracts held | 43,040,469 | 4,596,174 | ||
| Result from insurance contracts | 83,477,762 | 76,073,417 | ||
| Net investment result | 78,424,741 | -53,182,881 |
| 6,536,061 | -62,000,579 |
|---|---|
| -612,578 | 370,665 |
|---|---|
| -62,613,157 | 52,415,024 |
|---|---|
| -13,304,198 | -9,140,857 |
|---|---|
| 1,192,505 | 1,836,939 |
|---|---|
| 15,811,584 | -767,857 |
|---|---|
| 15,811,584 | -767,857 |
|---|---|
| 19,589,410 | 17,981,800 |
|---|---|
| 25,551,080 | 21,404,517 |
|---|---|
| -29,432,276 | -26,979,168 |
|---|---|
| -51,014,545 | -44,382,684 |
|---|---|
| 231,724 | 79,737 |
|---|---|
| -3,114,997 | -3,021,150 |
|---|---|
| 2,169,860 | 1,285,731 |
|---|---|
| 2,286,209 | 2,279,735 |
|---|---|
| 116,348 | 994,004 |
|---|---|
| 353,684 | 0 |
|---|---|
| -9,589,746 | -7,144,469 |
|---|---|
| 3,501,264 | 3,894,917 |
|---|---|
| 79,613,353 | 58,502,045 |
|---|---|
| 79,613,354 | 58,502,045 |
|---|---|
| -14,956,182 | -11,578,604 |
|---|---|
-14,956,182
-11,578,604
64,657,171
46,923,441
64,657,171
46,923,441
Gross written premiums increased by 8.3% to EUR 215.9 million in 2023.
| Gross premiums written | EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|---|
| Non-Group | 122,966,992 | 120,876,083 | 2,090,909 | 101.7 | |
| Group | 92,947,982 | 78,529,246 | 14,418,736 | 118.4 | |
| Total | 215,914,974 | 199,405,329 | 16,509,645 | 108.3 |
Non-Group gross written premiums grew by EUR 2.1 million, the most important being the positive shift in premium composition towards more profitable non-proportional contracts. The premiums for these contracts increased by 19.4%. This growth in gross written premiums was achieved through both price increases in line with global reinsurance market developments and organic volume growth.
Group gross written premiums increased by EUR 14.4 million (18.4%) as a result of premium growth in the Slovenian market.
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Insurance revenue | 167,804,126 | 150,760,655 | 17,043,471 | 111.3 |
| Insurance service expenses | -174,490,918 | -132,523,250 | -41,967,667 | 131.7 |
| Claims incurred | -162,708,295 | -122,849,828 | -39,858,467 | 132.4 |
| Operating expenses | -12,027,831 | -9,991,521 | -2,036,310 | 120.4 |
| Onerous contracts | 245,208 | 318,099 | -72,891 | 77.1 |
| Reinsurance service result | 43,669,147 | 9,867,581 | 33,801,564 | 442.6 |
| Insurance service result | 36,982,356 | 28,104,988 | 8,877,368 | 131.6 |
| Net investment result | 7,827,977 | 1,813,210 | 6,014,767 | 431.7 |
| Net insurance finance result | -6,815,712 | -4,876,551 | -1,939,161 | 139.8 |
| Net exchange gains | 1,293,761 | 1,820,272 | -526,511 |
| 2023 | 2022 | Change | Index | |
|---|---|---|---|---|
| 2,306,026 | -1,243,070 | 3,549,095 | -185.5 | |
| Other expenses | -13,805,508 | -11,803,863 | -2,001,645 | 117.0 |
| Income from investments in subsidiaries and associates | 30,755,010 | 51,728,827 | -20,973,817 | 59.5 |
| Net other operating expenses | -2,648,673 | -2,854,982 | 206,309 | 92.8 |
| Profit or loss before tax | 53,589,208 | 63,931,896 | -10,342,688 | 83.8 |
| Income tax expense | -4,114,406 | -2,580,945 | -1,533,461 | 159.4 |
| Net profit or loss for the period | 49,474,802 | 61,350,951 | -11,876,149 | 80.6 |
| Combined ratio | 80.8% | 84.2% | -3.4 p.p. |
|---|---|---|---|
| Loss ratio | 70.8% | 74.7% | -3.9 p.p. |
| Expense ratio | 10.0% | 9.5% | +0.5 p.p. |
| Investment return | 2.2% | 0.5% | +1.7 p.p. |
| Return on equity | 11.6% | 15.5% | -3.9 p.p. |
The insurance service result was up EUR 8.9 million, mainly due to the improved performance of the Group business (an increase of EUR 8.1 million). The insurance service result for the non-Group business was higher by EUR 0.8 million as a result of a more favourable performance of inward and outward business.
Insurance revenue increased by EUR 17.0 million (11.3%) due to growth in both the non-Group and Group business.
Insurance service expenses rose by EUR 42.0 million, mainly as a result of an increase in claims incurred.
| EUR | 2023 | 2022 | Change | Index |
|---|---|---|---|---|
| Non-Group | 71,430,180 | 61,697,514 | 9,732,666 | 115.8 |
| Group |
| Claims incurred | 2023 | 2022 | Change |
|---|---|---|---|
| Total | 162,708,295 | 122,849,828 | 39,858,466 |
| Combined ratio | 80.8% | 84.2% | -3.4 p.p. |
| Loss ratio | 70.8% | 74.7% | -3.9 p.p. |
| Expense ratio | 10.0% | 9.5% | +0.5 p.p. |
| 2023 | 2022 | Change | Index | |
|---|---|---|---|---|
| Net investment result | 7,827,977 | 1,813,210 | 6,014,767 | 431.7 |
| Net insurance finance result | -6,815,712 | -4,876,551 | -1,939,161 | 139.8 |
| Net exchange gains | 1,293,761 | 1,820,272 | -526,511 | 71.1 |
| Finance result | 2,306,026 | -1,243,070 | 3,549,096 | - |
| 2023 | 2022 | Change | Index | |
|---|---|---|---|---|
| Income from financial investments | 11,074,476 | 10,444,556 | 629,919 | 106.0 |
| Expenses for financial investments | 3,246,499 | 8,631,346 | -5,384,848 | 37.6 |
| Net investment result | 7,827,977 | 1,813,210 | 6,014,767 | 431.7 |
| Net income and expenses from subsidiaries and associates | 30,755,010 |
| EUR | 2023 | 2022 | Change |
|---|---|---|---|
| Interest income at effective interest rate | 4,735,050 | 2,688,043 | 2,047,007 |
| Gain on change in fair value of FVTPL assets | 3,903,887 | 4,129,770 | -225,883 |
| Gains on disposal of FVTPL assets | 9,388 | 77,683 | -68,295 |
| Gains on disposal of other IFRS asset categories | 12,456 | 1,163,032 | -1,150,576 |
| Income from dividends and shares – other investments | 217,967 | 458,074 | -240,108 |
| Movement in expected credit losses (ECL) | 89,921 | 153,926 | -64,006 |
| Other income | 1,097,797 | 1,120,444 | -22,648 |
| Other income from alternative funds | 1,008,011 | 653,583 | 354,428 |
| Total income from the investment portfolio | 11,074,475 | 10,444,556 | 629,919 |
| Loss on change in fair value of FVTPL assets | 2,692,105 | 7,232,854 | -4,540,749 |
| Losses on disposal of FVTPL assets | 158,893 | 69,230 | 89,663 |
| Losses on disposal of other IFRS asset categories | 132,904 | 965,345 | -832,441 |
| Movement in expected credit losses (ECL) | 35,495 | 132,103 | -96,608 |
| Other expenses | 227,101 | 231,814 | -4,713 |
| Total expenses for the investment portfolio | 3,246,498 | 8,631,346 | -5,384,848 |
| Net investment result | 7,827,977 |
|---|---|
| 1,813,210 | |
| 6,014,767 | |
| Net income and expenses from subsidiaries and associates | 30,755,010 |
| 51,728,827 | |
| -20,973,817 | |
| Net investment income relating to the investment portfolio | 38,582,988 |
| 53,542,037 | |
| -14,959,049 | |
| Return on investment portfolio | 5.6% |
| 7.8% | |
| -2.2 p.p. |
The result of investments in subsidiaries and associates was EUR 30.8 million, down EUR 21.0 million compared to 2022 due to lower dividends received from subsidiaries. In 2023, there were no impairment losses on subsidiaries, whereas in 2022 an impairment loss of EUR 1.2 million was recognised in subsidiaries.
The net insurance finance result was down EUR 1.9 million as a result of higher discount rates.
Profit before tax decreased by EUR 10.3 million compared to 2022. Excluding dividends received from subsidiaries, the result would have been EUR 10.9 million higher. In line with the decline in profit before tax, the net profit for the period also decreased by EUR 11.9 million. As a result, the return on equity was lower, at 11.6%.
The following are explanations of assets and liabilities that are relevant to the understanding of the Company’s financial position.
| EUR | 31 December 2023 | 31 December 2022 | Change | Index |
|---|---|---|---|---|
| Equity | 430,897,178 | 401,675,656 | 29,221,521 | 107.3 |
| Contractual service margin (CSM) | 9,521,208 | 8,401,764 | 1,119,444 | 113.3 |
| Risk adjustment | 30,691,156 | 34,695,702 | -4,004,546 | 88.5 |
| Investment portfolio position | 699,468,206 | 679,014,491 | 20,453,715 | 103.0 |
| Total assets | 813,954,323 | 754,248,344 | 59,705,979 | 107.9 |
Equity amounted to EUR 430.9 million, up EUR 29.2 million compared to the end of 2022. The increase in the profit for 2023 and a positive change in other comprehensive income were the primary reasons for the overall increase, partly decreased by dividend payouts.
Thus, SavaRe’s audited solvency position as at 31 December 2023 shows that the Company is well capitalised, with a solvency ratio of 289% (31 December 2022: 266%). The Company thus has a solvency ratio well above the regulatory requirement of 100% and is well capitalised according to its internal criteria, which define an optimal solvency ratio above 200%.
As at 31 December 2023, the contractual service margin totalled EUR 9.5 million (net of reinsurance, EUR 5.1 million). In 2023, it increased by EUR 1.1 million, or 13.3%. The newly recognised CSM was EUR 15.7 million lower than the CSM released, reflecting a higher volume of recognised non-proportional reinsurance contracts in 2023. The increase in the contractual service margin was also positively impacted by the change in future cash flow assumptions of EUR 16.0 million.
As at 31 December 2023, the risk adjustment was EUR 30.7 million, down EUR 4.0 million compared to the previous year. The majority of the risk adjustment (EUR 26.8 million) arises from liabilities for claims incurred and decreased by EUR 4.4 million. The other part of the risk adjustment (EUR 3.9 million) relates to liabilities for remaining coverage and increased by EUR 0.4 million due to portfolio growth.
| Deposits and CDs | 1,021,347 | 0 | 1,021,347 | - |
|---|---|---|---|---|
| Government bonds | 229,591,819 | 214,198,680 | 15,393,139 | 107.2 |
| Government bonds (excl. gvmt-guaranteed bonds) | 211,054,563 | 198,953,856 | 12,100,707 | 106.1 |
| Government-guaranteed bonds | 18,537,256 | 15,244,825 | 3,292,432 | 121.6 |
| Corporate bonds | 88,089,961 | 73,992,930 | 14,097,031 | 119.1 |
| Regular corporate bonds | 72,416,318 | 66,695,422 | 5,720,896 | 108.6 |
| Covered bonds | 11,353,007 | 2,021,505 | 9,331,503 | 561.6 |
| Subordinated bonds | 4,320,636 | 5,276,003 | -955,367 | 81.9 |
| Shares | 3,538,972 | 7,080,606 | -3,541,633 | 50.0 |
| Mutual funds | 4,458,315 | 3,933,982 | 524,333 | 113.3 |
| Infrastructure funds | 21,084,448 | 18,843,871 | 2,240,577 |
| 3,884,428 | 4,584,214 | -699,785 | 84.7 |
|---|---|---|---|
| 2,714,904 | 1,796,693 | 918,212 | 151.1 |
|---|---|---|---|
| 354,384,196 | 324,430,976 | 29,953,220 | 109.2 |
|---|---|---|---|
| 325,241,793 | 322,935,793 | 2,306,000 | 100.7 |
|---|---|---|---|
| 7,582,168 | 7,721,693 | -139,525 | 98.2 |
|---|---|---|---|
| 12,260,049 | 23,926,029 | -11,665,980 | 51.2 |
|---|---|---|---|
| 699,468,206 | 679,014,491 | 20,453,715 | 103.0 |
|---|---|---|---|
The investment portfolio increased by EUR 20.5 million, or 3.0 percentage points, compared to year-end 2022. The major change in the value of investments was mainly in government and corporate bonds, as available funds from operations and investment maturities and disposals were invested mainly in these types of assets. The level of cash and cash equivalents decreased by almost half as cash was invested in higher-yielding assets. The value of shares and mutual funds fell slightly as a result of the disposals.
| 31 December 2023 | 31 December 2022 | Change in composition in p.p. | |
|---|---|---|---|
| Investments in subsidiaries and associates | 46.5% | 47.6% | -1.1 |
| Fixed-rate financial investments | 45.6% | 42.4% | 3.1 |
| Infrastructure funds | 3.0% | 2.8% | 0.2 |
| Cash and cash equivalents | 1.8% | 3.5% | -1.8 |
| Shares and mutual funds | 1.1% | 1.6% | -0.5 |
| Property | 1.1% | 1.1% | -0.1 |
| Real estate funds | 0.6% | 0.7% | -0.1 |
| Other* | 0.4% | 0.3% | 0.1 |
| Total | 100.0% | 100.0% |
The largest share of the investment portfolio at year-end 2023 were financial investments in subsidiaries and associates, which accounted for 46.5%. Fixed-rate investments followed closely behind at 45.6%. Cash decreased by 1.8 percentage points, while fixed-rate investments increased by 3.1 percentage points, mainly due to the investment of surplus cash in this asset type. Sales resulted in a slight decrease in investments in shares and mutual funds.
EUR
| 31 December 2023 | 31 December 2022 | Change in composition in p.p. | |
|---|---|---|---|
| Government bonds | 211,054,563 | 198,953,856 | 0.9 |
| Regular corporate bonds | 72,416,318 | 66,695,422 | 0.5 |
| Government-guaranteed bonds | 18,537,256 | 15,244,825 | 0.4 |
| Covered bonds | 4,320,636 | 5,276,003 | -0.2 |
| Subordinated bonds | 11,353,007 | 2,021,505 | 1.3 |
| Deposits and CDs | 1,021,347 | 0 | 0.1 |
| Total | 318,703,128 | 288,191,610 | 3.1 |
There were no major changes in the composition of fixed-rate investments at the end of 2023 compared to year-end 2022.
As at 31 December 2023, in addition to its investments in subsidiaries, Sava Re held investments in other companies in the insurance industry.
| Other investments of Sava Re in the insurance industry | Holding (%) as at 31 December 2023 | |
|---|---|---|
| Slovenia | Zavarovalnica Triglav d.d. | 0.07% |
| EU and other international | Bosna Reosiguranje d.d., Sarajevo, Bosnia and Herzegovina | 0.51% |
| Dunav Re a.d.o., Belgrade, Serbia | 0.93% |
As at 31 December 2023, Sava Re held EUR 430.9 million in equity capital and EUR 75.0 million in subordinated liabilities. In October 2019, it issued subordinated bonds with a scheduled maturity date of 2039 and with an early recall option for 7 November 2029. The bond is admitted to trading on the regulated market of the Luxembourg Stock Exchange. As at 31 December 2023, the market price of the bond was 77.717% and the market value EUR 58,702,709 (31 December 2022: the market price was 74.499% and the market value EUR 56,290,346).
In the Sava Insurance Group, we are aware of our responsibility to our employees and, therefore, strive to closely follow our objectives in strategic human resource management. Sava Insurance Group employs 3,009 people.
At the Sava Insurance Group, we have set five priorities in human resource management for the 2023–2027 strategy period:
In 2023, our human resource management focused on the following objectives and activities:
We carefully plan and implement activities to build the external image of the Sava Insurance Group as a group of attractive employers. To this end, we worked with colleagues from Group companies in 2023 to produce and publish an employer video, update the career pages on the companies’ websites and strengthen communication through social networks, internal ambassadors, and appearances at corporate events and career fairs.
39 GRI 2-7.
40 GRI 3-3.
41 GRI 3-3.
The companies of the Sava Insurance Group ensure regular internal communication with their employees in a uniform manner. Some companies are also in the process of updating their internal employee portal. Different processes and communication channels allow us to ensure two-way and transparent communication between the employer and the employees. We foster a good climate and commitment among our employees through various events and benefits at the Group, company and organisational unit levels.
Recruitment is based on timely identification of needs, careful planning and the recruitment of skilled and motivated people, ensuring that they receive induction and training to enable them to integrate quickly into their workplace. We develop and train our employees in line with the needs of the Company and the Group, and strive to create a productive and motivating working environment.
The following shows the number and structure of employees in the parent company, Sava Re, and in total for the entire Sava Insurance Group, according to various criteria.
In addition to its core reinsurance business, Sava Re also manages the Sava Insurance Group. The diagram shows the organisational chart of Sava Re.
42 GRI 2-9.
Employees by Group market as at year end
The companies of the Sava Insurance Group are present in Slovenia, Croatia, Serbia, Montenegro, North Macedonia and Kosovo.
| Sava Insurance Group | Sava Re | 2023 | 2022 |
|---|---|---|---|
| Number of employees as at year end | 3,009 | 2,952 | |
| Full-time equivalent as at year end | 2,744.8 | 2,704.3 |
The number of employees in Sava Re and the Sava Insurance Group increased in 2023 compared to the previous year. The changes mainly concern sales support and IT. New staff was recruited due to increased workload, redeployment within the Group, departures and maternity leave.
| Sava Insurance Group | 2023 | 2022 | Sava Re | 2023 | 2022 |
|---|---|---|---|---|---|
| Type of employment | Number | Share | Number | Share | |
| Part-time | 375 | 12.5% | 29 | 18.1% | |
| 306 | 10.4% | 24 | 16.3% | ||
| Full-time | 2,634 | 87.5% | 131 | 81.9% | |
| 2,646 | 89.6% | 123 | 83.7% | ||
| Total | 3,009 | 100.0% | 160 | 100.0% | |
| 2,952 | 100.0% | 147 | 100.0% |
The majority of Sava Insurance Group employees are in full-time employment. Part-time employees included those recognised as disabled, those who exercised the right to child-care leave, agents in first employment, and employees in split employment in the Group.
43 GRI 2-7.
| Share | Number | Share | Number | Share | Number | |||
|---|---|---|---|---|---|---|---|---|
| Fixed-term contract | 513 | 17.0% | 485 | 16.4% | 2 | 1.3% | 2 | 1.4% |
| Contract of indefinite duration | 2,496 | 83.0% | 2,467 | 83.6% | 158 | 98.8% | 145 | 98.6% |
| Total | 3,009 | 100.0% | 2,952 | 100.0% | 160 | 100.0% | 147 | 100.0% |
The most common type of employment in the Sava Insurance Group is a contract of indefinite duration. Fixed-term contracts are most commonly used to cover the needs of employees who are absent for long periods or due to temporary increases in workload.
| Employees covered by the collective bargaining system | Number | Share | Number | Share | Number | Share | Number | Share |
|---|---|---|---|---|---|---|---|---|
| Employees covered by the collective bargaining agreement | 2,865 | 95.2% | 2,819 | 95.5% | 137 | 85.6% | 125 | 85.0% |
| Employees not covered by the collective bargaining agreement | 144 | 4.8% | 133 | 4.5% | 23 | 14.4% | 22 | 15.0% |
| Total | 3,009 | 100.0% | 2,952 | 100.0% | 160 | 100.0% | 147 | 100.0% |
The majority of employees are covered by the collective bargaining system. The members of management and senior management are outside the collective bargaining system.
| Level of formal education | Number | Share |
|---|---|---|
| Number | Share | Number | Share | Number | Share | Number | Share | |
|---|---|---|---|---|---|---|---|---|
| Primary and lower secondary education | 6 | 0.2% | 7 | 0.2% | 0 | 0.0% | 0 | 0.0% |
| Secondary education | 1,187 | 39.4% | 1,175 | 39.8% | 13 | 8.1% | 13 | 8.8% |
| Higher education | 302 | 10.0% | 304 | 10.3% | 4 | 2.5% | 4 | 2.7% |
| University education | 1,369 | 45.5% | 1,322 | 44.8% | 122 | 76.3% | 110 | 74.8% |
| Master’s degree or doctorate | 145 | 4.8% | 144 | 4.9% | 21 | 13.1% | 20 | 13.6% |
| Total | 3,009 | 100.0% | 2,952 | 100.0% | 160 | 100.0% | 147 | 100.0% |
The structure of employees by level of education did not change significantly in 2023 compared to the previous year. At the Group level, the percentage of employees with primary education remains very low, while the percentage of employees with secondary education is mainly related to insurance sales. The majority of employees have at least a university degree.
The Group’s activity requires and relies on highly qualified staff, who are encouraged to take part in further training and participate in various formal education programmes.
| Age group | Number | Share | Number | Share | Number | Share | Number | Share |
|---|---|---|---|---|---|---|---|---|
| From 20 to 25 | 147 | 4.9% | 140 | 4.7% |
| From 26 to 30 | 217 | 7.2% | 202 | 6.8% | 21 | 13.1% | 13 | 8.8% |
|---|---|---|---|---|---|---|---|---|
| From 31 to 35 | 402 | 13.4% | 382 | 12.9% | 24 | 15.0% | 23 | 15.6% |
| From 36 to 40 | 427 | 14.2% | 427 | 14.5% | 23 | 14.4% | 18 | 12.2% |
| From 41 to 45 | 567 | 18.8% | 568 | 19.2% | 29 | 18.1% | 28 | 19.0% |
| From 46 to 50 | 473 | 15.7% | 454 | 15.4% | 27 | 16.9% | 29 | 19.7% |
| From 51 to 55 | 378 | 12.6% | 390 | 13.2% | 20 | 12.5% | 16 | 10.9% |
| Over 56 | 398 | 13.2% | 389 | 13.2% | 16 | 10.0% | 17 | 11.6% |
| Total | 3,009 | 100.0% | 2,952 | 100.0% | 160 | 100.0% | 147 | 100.0% |
The composition of Sava Insurance Group employees by age group in 2023 was similar to previous years.
| Sava Insurance Group | 2023 | 2022 | |
|---|---|---|---|
| Sava Re | 2023 | 2022 | |
| Gender | Number | Share | Number |
| Share | Number | Share | Number | Share | Number | Share | Number | |
|---|---|---|---|---|---|---|---|---|
| Women | 1,803 | 59.9% | 1,709 | 57.9% | 101 | 63.1% | 93 | 63.3% |
| Men | 1,206 | 40.1% | 1,243 | 42.1% | 59 | 36.9% | 54 | 36.7% |
| Total | 3,009 | 100.0% | 2,952 | 100.0% | 160 | 100.0% | 147 | 100.0% |
The composition of Sava Insurance Group employees by gender has been higher for women than for men for several years. Both women and men are represented in all business areas and at all levels of management.
The base salary of women is the same as the base salary of men in all employee categories.
| Years of service | Number | Share | Number | Share | Number | Share | Number | Share |
|---|---|---|---|---|---|---|---|---|
| From 0 to 5 years | 1,352 | 44.9% | 1,108 | 37.5% | 90 | 56.3% | 78 | 53.1% |
| From 6 to 10 years | 517 | 17.2% | 554 | 18.8% | 24 | 15.0% | 24 | 16.3% |
| From 11 to 15 years | 406 | 13.5% | 478 | 16.2% | 22 | 13.8% | 24 | 16.3% |
| From 16 to 20 years | 359 | 11.9% | 364 | 12.3% | 9 | 5.6% | 8 | 5.4% |
| From 21 to 30 years |
In terms of years of service, most of Sava Re’s employees are in the first and second groups, which is largely due to increased recruitment in the last decade. The percentage of employees with up to 30 years of service in the company decreased compared to the previous year.
| Sava Insurance Group | Sava Re | |||
|---|---|---|---|---|
| Members of management body | Number | Share | Number | Share |
| Number of men in management body | 34 | 72.3% | 3 | 75.0% |
| Number of women in management body | 13 | 27.7% | 1 | 25.0% |
| Total | 47 | 100.0% | 4 | 100% |
The Sava Insurance Group employs 47 members of management. The majority, 72.3%, are men.
| Sava Insurance Group | Sava Re | |||
|---|---|---|---|---|
| Employees by gender | Number | Share | Number | Share |
| Number of men at management levels 1 and 2 | 149 | 55.6% | 16 | 59.3% |
| Number of women at management levels 1 and 2 | 119 | 44.4% | 11 | 40.7% |
| Total | 268 | 100.0% | 27 | 100% |
The management of Sava Re consists of four members, the chairman and three members of the management board. The Sava Insurance Group has a balanced composition of employees at management levels 1 and 2. Sava Re has a slightly lower percentage of women at management levels 1 and 2.
The management board of Sava Re, as defined in the Company’s internal regulations on work organisation and job classification, also includes three authorised representatives of the management board who are not authorised to conduct the business.
| Year | 2023 | 2022 | Difference |
|---|---|---|---|
| Average number of working days lost | 1,361 | 1,504 | -143 |
| Average number of employees | 2,988 | 2,926 | 62 |
| Average number of working days per year | 241 | 252 | -11 |
| Absenteeism rate (%) | 0.19% | 0.20% | -0.01% |
| Year | 2023 | 2022 | Difference |
|---|---|---|---|
| Average number of working days lost | 157 | 114 | 43 |
| Average number of employees | 154 | 143 | 11 |
| Average number of working days per year | 249 | 260 | -11 |
| Absenteeism rate (%) | 0.41% | 0.31% | 0.10% |
| Year | 2023 | 2022 | Index |
|---|---|---|---|
| Number of injuries | 8 | 9 | 88.9 |
| Number of working days lost | 357 | 123 | 290.4 |
| Number of working hours lost | 2,858 | 639 | 447.3 |
The number of injuries in the Sava Insurance Group continued to below in 2023. The number of working days and hours lost increased in 2023 compared to 2022 because employees were absent for several months due to an occupational injury.
| Year | 2023 | 2022 | Difference |
|---|---|---|---|
| Number of employees who left | 506 | 490 | 16 |
| Year | Number of Employees |
|---|---|
| Previous Year | 2,952 |
| Current Year | 2,903 |
| Change | -49 |
| Turnover Rate | Current Year | Previous Year | Change |
|---|---|---|---|
| Employee turnover rate | 17.1% | 16.9% | 0.3% |
| Other Metrics | 6.1% | 10.6% | -4.4% |
The employee turnover rate is measured as the ratio of the number of employees who left during the year to the total number of employees as at the year end. The employee turnover rate remained roughly the same across the Group.
| Company | Gender | Arrivals | Departures |
|---|---|---|---|
| Sava Insurance Group | Women | 377 (67.0%) | 287 (56.7%) |
| Men | 186 (33.0%) | 219 (43.3%) | |
| Total | 563 (100.0%) | 506 (100.0%) | |
| Sava Re | Women | 12 (54.5%) | 4 (44.4%) |
| Men | 10 (45.5%) | 5 (55.6%) | |
| Total | 22 (100.0%) | 9 (100.0%) |
The number of arrivals in the Sava Insurance Group in 2023 was higher than the number of departures. There were more women than men among the new arrivals. The gender ratio for employees who left remained similar.
| Company | Age Group | Arrivals | Departures |
|---|---|---|---|
| Sava Insurance Group | From 20 to 25 | 108 (19.2%) | 63 (12.5%) |
| Sava Re | From 20 to 25 | 0 (0.0%) |
| Gender | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|
| From 26 to 30 | 107 | 19.0% | 53 | 10.5% |
| From 31 to 35 | 91 | 16.2% | 80 | 15.8% |
| From 36 to 40 | 79 | 14.0% | 60 | 11.9% |
| From 41 to 45 | 78 | 13.9% | 73 | 14.4% |
| From 46 to 50 | 38 | 6.7% | 42 | 8.3% |
| From 51 to 55 | 30 | 5.3% | 39 | 7.7% |
| Over 56 | 32 | 5.7% | 96 | 19.0% |
| Total | 563 | 100.0% | 506 | 100.0% |
Employees on parental leave
Sava Insurance Group
| Gender | Number | Share |
|---|---|---|
| Women | 81 | 4.5% |
| Men | 10 | 0.8% |
| Total | 91 | 3.0% |
At the Sava Insurance Group level, 91 employees took parental leave the previous year. Of these, 81 were women and 10 were men.
55 GRI 401-01, 2-7.
56 GRI 401-03.
| Gender | Number | Share | Number | Share |
|---|---|---|---|---|
| Women | 38 | 2.1% | 40 | 2.3% |
| Men | 10 | 0.8% | 7 | 0.6% |
| Total | 48 | 1.6% | 47 | 1.6% |
At the Sava Insurance Group level, 48 employees – 38 women and 10 men – returned to work from parental leave in 2023.
We are aware that the personal and professional development of each employee is a prerequisite for the development and attainment of goals at the level of the individual, the company and the entire Sava Insurance Group.
We provide professional and personal development opportunities for our employees by:
We promote the development and transfer of knowledge and skills throughout the Sava Insurance Group. To achieve this, we hold expert meetings for representatives of all companies at events or professional conferences, providing an opportunity to share knowledge and skills and to inform each other of results and plans. In 2023, we held internal conferences for data protection, compliance, human resources, procurement, sustainability, reinsurance, internal audit, actuarial and risk management, finance, controlling and accounting, and IT.
We also hosted an international strategic conference at the Group level, which brought together members of the management and other key personnel from across the Sava Insurance Group, and an Adriatic region conference for non-Slovenians subsidiaries, aimed at members of the management of these companies. The main objective was to address specific issues, problems and opportunities in the non-EU markets.
In 2023, Zavarovalnica Savarec received the Top Investor in Education certificate, which is awarded to companies that systematically invest in the education and training of their employees and exceed the national average in at least two out of three selection criteria. We were also nominated as a finalist in the Golden Thread and Štajerska Region Employer of the Year 2023 awards, placing us among the best employers in Slovenia.
| Sava Insurance Group | Sava Re | ||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Index | 2023 | 2022 | Index | ||
| Hours of training | 55,144 | 57,139 | 96.5 | 3,024 | 2,184 | 138.5 | |
| Number of training participants | 2,451 | 2,326 | 105.4 | 113 | 93 | 121.5 |
Our aim is to keep the number of training participants and the number of training hours per employee at the same level throughout the Sava Insurance Group. We place great emphasis on internal training, delivered by internal or external providers who tailor the programme to our needs.
| Sava Insurance Group | Sava Re | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Index | 2023 | 2022 | Index | ||||
| Number of internal education/training hours | 39,205 | 45,762 | 85.7 | 1,112 | 240 | 463.3 | |||
| Number of external education/training hours | 15,939 | 11,377 | 140.1 | 1,912 | 1,944 | 98.4 | |||
| Total education/training hours | 55,144 | 57,139 | 96.5 | 3,024 | 2,184 | 138.5 |
| Year | 2023 | Sava Insurance Group | Sava Re | |||
|---|---|---|---|---|---|---|
| Gender | Number | Hours of training | Average | Number | Hours of training | Average |
| Women | 1,487 | 32,018 | 21.5 | 84 | 1,688 | 20.1 |
In 2023, we have redefined our policy on human resource development and succession planning. Our aim is to place greater emphasis on systematically identifying and securing succession, particularly for key professional and management roles. Group companies are establishing a process to identify deputies and potential successors for management board members and directors reporting directly to the board, as well as other key management and professional staff.
At the Sava Insurance Group, we foster an environment in which our employees can develop and achieve their potential. We continuously invest in the development of leadership competencies and effective collaboration. We encourage employee motivation and commitment to achieving common goals. We recognise and reward good performance. We revamp and adapt our processes in order to provide for effective work organisation and engagement of employees in various projects.
At the Sava Insurance Group, we build and promote a culture of improvement and innovation. The companies have established formal and informal systems for making proposals for improvement and innovation.
In all the companies, leaders are the key people who have a significant impact on creating a positive climate, employee engagement, satisfaction and loyalty. It is therefore very important that we invest in their development and strengthen their leadership competencies. Companies organise various forms of development programmes and group and individual coaching sessions for leaders. For the first time, we organised a “Leader as Coach” training in 2023 for a group of high-potential employees from most Group companies.
The Sava Insurance Group offers numerous benefits to our employees:
In addition, we offer other benefits to create and encourage team building, a motivating and positive working atmosphere, work-life balance and general well-being in the workplace. In 2023, we held the second Sava Insurance Group Sports Games, bringing together employees from all Group companies and countries. The games have become an annual event where employees from different companies meet, make new friends, nurture old friendships and get together in an informal setting.
| Employees involved in annual performance appraisal interviews | Year 2023 | Sava Insurance Group | Sava Re | ||
|---|---|---|---|---|---|
| Women | 824 | 45.7% | 86 | 85.1% | |
| Men | 616 | 51.1% | 52 | 88.1% | |
| Total | 1,440 | 47.9% | 138 | 86.3% |
We encourage our employees to pursue the goals that relate to the Company’s strategy, which in effect implies that each employee contributes to the attainment of common goals. We regularly review employee progress, which allows us to promptly evaluate performance and coordinate our efforts in the process towards achieving our goals.
Our goal is to ensure that our employees feel safe both inside and outside the workplace, which is why occupational safety and health is one of the priorities of the Sava Insurance Group, involving all employees, the management, the human resource department, the accredited occupational health provider and the relevant external professional service. Each year, Group companies carry out various health promotion activities.
In 2023, most companies offered employees the opportunity to participate in health days, such as group sports events (hiking, cycling, Nordic walking, skiing and the like), lectures (healthy eating, stress management and healthy lifestyle) or similar individual activities of their choice. During the year, companies also offer their employees various team sports activities (e.g. volleyball or basketball), short active breaks or more beneficial individual sports activities (e.g. yoga, active exercise or fitness). Some companies also offer their employees healthy snacks or fruit at work.
In 2023, we have established a policy on ensuring the inviolability of individuals and the protection of personal dignity at the Group level. Ensuring the inviolability and protection of the personal dignity of employees and others involved in work and business processes is one of the Group’s key priorities, and we strive to provide and maintain a safe workplace in which no one is exposed to violence (in particular sexual violence), harassment (in particular sexual harassment), discrimination and bullying.
The inviolability and protection of personal dignity are guaranteed by mechanisms and measures that provide for a clear, transparent, swift and predefined procedure for detecting and sanctioning undesirable conduct, independent decision-making, professionalism, autonomy and independence of the arbitration board, decision-making at a level outside the Sava Insurance Group, and the strictly protected principle of confidentiality of reporting persons and infringers.
As in the previous year, there were no reports of harassment, bullying or other form of violence in the workplace in 2023.
64 GRI 403-1, 3-3.
Corporate volunteerism has been a tradition in all Sava Insurance Group companies, because we believe that by doing so, we do much good in our local communities and give something back to society. In 2023, we organised various events in Slovenian companies, such as planting trees in the Karst region, helping at the zoo and animal shelters, working with the elderly and other vulnerable groups, and collecting clothes and supplies for those in need. Each employee can choose one event and dedicate one day to volunteering activities held by a company.
For more information on corporate volunteerism, see section 13 “Sustainability report”.
Employees at the Sava Insurance Group can join representative labour bodies in their respective companies. Employee representatives are regularly informed of important changes and involved in their implementation, as required by law.
Group developments are presented to employees on the intranet portal of each company or on the Sava Insurance Group intranet portal.
We encourage employee interaction through various formal and informal meetings. We are committed to a culture in which we communicate in a transparent manner and value mutual respect. Zavarovalnica Sava also received the Family-Friendly Company certificate, awarded by the Ekvilib Institute.
65 GRI 413-01, 3-3.
66 GRI 3-3.
We present the risk and capital management systems and the significant risks to which the Sava Insurance Group is exposed. Qualitative and quantitative treatment of risk exposures is presented in section 16.7 “Risk management”. These areas will be presented in more detail also in the Solvency and Financial Condition Report of Sava Re as at 31 December 2023, which will be posted on Sava Re’s website on 5 April 2024, and in the Solvency and Financial Condition Report of the Sava Insurance Group as at 31 December 2023, which will be published on the Sava Re website on 17 May 2024.
The Sava Insurance Group management is aware that risk management is key to achieving operational and strategic objectives and to ensuring the long-term solvency of the Group. Therefore, the Group is continuously upgrading its risk management system at both the company and Group level.
The risk management system is based on Solvency II requirements, but additionally takes into account the legal specifics of non-insurance companies. The risk management system in these companies is adapted according to the business activities of each of them and the scope of these activities and risks to which a company is exposed. Good practices from Sava Re’s risk management model and the organisation of risk management are also transferred to other Group companies.
The Sava Insurance Group has implemented a risk strategy that defines the Group’s risk appetite and policies that cover the entire risk management framework, its own risk and solvency assessments and risk management for each risk category.
Risk management is integrated into all stages of business management and consists of the following key elements:
As part of our systematic approach to risk management, we focus on:
The efficient functioning of the risk management system is primarily the responsibility of the Sava Re management board and the management board of each individual subsidiary. To ensure effective risk management, the Group uses a three-lines-of-defence model, which clearly segregates responsibilities and tasks among the lines of defence. The first line of defence consists of all organisational units with operational responsibilities. The second line of defence consists of three key functions and the risk management committee, if set up in the company. The third line of defence consists of the internal audit function.
The Group’s risk management system is presented in the following diagram.
The Group’s risk management system has been set up on a top-down principle, taking into account the specificities of each company. The management board of each company plays a key role and bears ultimate responsibility for the effectiveness of the risk management processes in place and their alignment with the Group’s standards and the applicable laws.
The supervisory board of each company also plays an important role by reviewing and approving all key risk-related documents. A risk committee has been set up within the supervisory board of the parent company to provide relevant expertise and support in the risk management process in the company and in the Group.
Under the second line of defence, the company and the Group have three key functions in place: the actuarial function, risk management function and compliance function. In addition, the Group’s large members have a risk management committee in place. Each company ensures the independence of the key functions, which are organised as management support services and report directly to the management board.
The main tasks of the actuarial function in the risk management system are to provide an opinion on the underwriting policy, to provide an opinion on the adequacy of reinsurance arrangements, and to independently verify and challenge the calculation of liabilities and assets from (re)insurance contracts, including the assumptions, methods and professional judgement used. The actuarial function of each company works in cooperation with the Group’s actuarial function.
The main tasks of the compliance function in relation to the risk management system are the identification, management and reporting of non-compliance, including the monitoring of the legal environment, the analysis of existing processes in relation to their compliance with internal and external regulations and any changes to regulations.
The third line of defence is provided by the internal audit function, whose responsibilities are defined in section 11 “Internal auditing in the Sava Insurance Group”.
The Group seeks to operate in compliance with its business strategy and meet the key strategic objectives while maintaining an adequate capital level. The risk strategy is prepared in line and in parallel with the strategic plan. The Group has adopted the Sava Insurance Group Risk Strategy for 2023–2027, which defines the risk appetite by operating segment, a set of key indicators and their limits, and a set of operational indicators for ongoing monitoring. Each Group company sets its own risk strategy, risk tolerance limits and operational limits based on the Group’s risk appetite.
The key indicators for monitoring and measuring compliance with risk appetite are:
The Group manages its capital to ensure that each Group company has sufficient funds available, on an ongoing basis, to meet its obligations and regulatory capital requirements. The composition of own funds held to ensure capital adequacy must comply with regulatory requirements.
The solvency ratio is the most important indicator of the risk strategy in relation to capital management. The Group’s solvency requirement is designed to meet regulatory and rating agency requirements while maintaining sufficient surplus capital to cover the potential capital needs of the subsidiaries in the event of a major stress scenario materialising in any of them.
The main risk management processes are identifying, assessing (measuring) and monitoring risks, determining appropriate actions to manage them and reporting on them. Risk management processes are inherently connected with and incorporated into the basic processes conducted at both the company and Group level. They take place in all three lines of defence of the risk management system and are integrated into the decision-making system, so that all important business and strategic decisions are also evaluated from a risk perspective.
As part of the risk identification process, each Group company identifies the risks to which it is exposed. The key risks, which are compiled in each company’s risk register and form the company’s risk profile, are regularly reviewed, and new risks are added as necessary. Risk identification at the Group level is conducted in the same way. Risk identification in the individual Group companies and at the Group level is both a top-down and a bottom-up process. The top-down approach is mainly used for strategic risks, such as reputational risk and regulatory risk, and to identify emerging risks. Bottom-up risk identification takes place in individual organisational units and with risk owners (first line of defence).
Risk identification is essentially ongoing, but is particularly important during business planning and for all major projects and business initiatives, such as new product launches, investments in a new asset class, acquisitions and others.
The Group has regular risk assessment (measurement) processes in place for all the risks to which individual companies or the Group are exposed. Risks are measured using both qualitative and quantitative methods, which are constantly being refined.
Different approaches and models are used to measure each risk, depending on their suitability:
Risk monitoring is conducted at several levels: in each organisational unit, the risk management department, the risk management committee and at the level of the management board, the risk committee of the supervisory board (in Sava Re) and the supervisory board of each Group company. In addition, the risk profile of each Group company is monitored at the Group level with regard to its impact on the Group’s risk profile.
Risk management takes into account the cost-benefit aspect of each action and any recommendations made by the risk management committee and key functions. If there is a need to adopt a new measure to limit a specific risk, the company concerned will carry out an analysis of this measure, taking into account the aspect of cost-effectiveness in its decision-making process.
Each Group company considers the impact of its business strategy on its risk profile and capital position as part of its business planning. When decisions are made during the year that have a significant impact on the risk profile but were not assessed for risk in the business planning process, the company concerned assesses the impact of these decisions on its own and the Group’s risk profile, checks compliance with its risk appetite and takes the necessary action.
A regular risk reporting system is in place in the larger Group companies and at the Group level. Risk owners report to the risk management function on specific risk categories, such as a predefined set of relevant risk measures and additional qualitative information. On this basis, the risk management function, in collaboration with the risk owners, prepares a risk report covering the overall risk profile of each company. The report is discussed at all levels and is shared with the Group’s risk management function. Relevant risk information is also monitored at Group level and reported in the Group’s risk report.
ORSA is a process that runs in parallel with business planning. It aims to understand the risk profile and analyze the impact of changes in the risk profile over the next three years on capital adequacy. The analysis takes into account both the standard Solvency II formula and the own risk assessment and impact analysis of various stress tests and scenarios.
The ORSA assesses all significant measurable and unmeasurable risks that could affect the performance of an individual Group company or the Group as a whole. Sustainability risks, in particular climate change risks, including climate scenarios, are also addressed and assessed.
The ORSA is embedded in the decision-making process and ensures that key decisions and the business strategy are made in light of the risks and associated capital requirements. The results of the ORSA are used to review the alignment of the business strategy with the risk strategy. This links business strategy, the risks taken and the resulting capital required, and capital management.
The company’s management board, risk management committee and specialist staff from different areas are actively involved in the entire ORSA process.
The Group and its individual companies classify all identified risks into the following key risk categories – underwriting risks, financial risks (comprising market risk, liquidity risk, credit risk and the risk of failure to achieve guaranteed returns), operational risks and strategic risks.
In addition, the Group and its companies monitor emerging risks that may affect any of the above risk categories. As part of the identification of these risks, sustainability risks are also identified and assessed, which in the Sava Insurance Group mainly affect market and underwriting risks. They are discussed in the strategic risks section of this report.
Individual risks are described in detail in the notes to the financial statements of the Sava Insurance Group and Sava Re in section 16.7 “Risk management”.
Underwriting risk arises from insurance transactions, the primary purpose of which is to assume risk from insureds (underwriting) and to perform (re)insurance contracts and transactions that are directly related to (re)insurance transactions. It relates to the risks covered under (re)insurance contracts and related processes and arises from uncertainty as to the occurrence, extent and timing of obligations.
In addition to the risks assumed directly by the Group’s direct insurers, Sava Re assumes underwriting risk from cedants outside the Group (accepted reinsurance). Sava Re retains a portion of the assumed risks (Group and non-Group) and retrocedes the portion that exceeds its own capacity.
Underwriting risks are broadly divided into non-life underwriting risks, life underwriting risks and health underwriting risks (which include accident (re)insurance). The Group and Sava Re are exposed to all three categories of risks.
Non-life underwriting risks are further subdivided into premium risk, risk of insufficient liabilities and assets from (re)insurance contracts, lapse risk and catastrophe risk.
Premium risk: this is the risk that premiums written are insufficient to meet the obligations arising from (re)insurance contracts. This risk depends on many factors, such as inadequate assessment of market developments, inadequate assessment of claims development, use of inadequate statistics, deliberately insufficient premiums for certain classes of business that are expected to be offset by other classes of business, or inadequate assessment of external macroeconomic factors that may change significantly during the term of a contract; in certain classes of business, there is also inadequate assessment of environmental factors, including climate change. This includes underwriting process risk, price risk and the risk of unexpected increase in claims.
Given the Group’s portfolio structure, the largest contributors to premium risk include motor vehicle and property (re)insurance (fire and other damage to property, including related business interruption insurance).
The Group seeks to mitigate underwriting process risk by restricting authorisations for mass underwriting, ensuring additional training for underwriters and agents, providing understandable, clear and detailed instructions, and setting appropriate underwriting limits that are consistent with the business strategy, the risk strategy and the reinsurance programme. We also pay particular attention to offering products to appropriate target clients (to avoid mis-selling and adverse selection), accepting reinsurance from trusted cedants, and ensuring that appropriate limits are in place for exposure concentrations by geographic location and homogeneous risk groups, thereby maintaining favourable risk diversification.
Risk of insufficient liabilities and assets from (re)insurance contracts: this is the risk that the liabilities and assets from (re)insurance contracts are either (i) insufficient to meet the obligations arising from (re)insurance contracts due to inadequate methods, inappropriate, incomplete and inaccurate data, inefficient procedures and controls, inadequate expert judgement, or (ii) misstated, resulting in unreliable information about the financial position of the company or the Group. This includes the risk of data availability and accuracy, the risk of using inappropriate methods or assumptions, the risk of calculation errors, and the risk that the complexity of the tools used in the process may lead to misleading results. Sustainability risks, including those related to climate change, are also considered when assessing the adequacy of provisions.
As with premium risk, the majority of the risk of insufficient liabilities and assets from (re)insurance contracts arises from the motor and property business, where liabilities and assets from (re)insurance contracts are structurally the largest due to the Group’s traditional focus on such business.
The Group manages the risk of insufficient liabilities and assets from (re)insurance contracts through robust processes and effective controls for their calculation under both IFRS and Solvency II regulations. In addition, each year we back-test the adequacy of the (re)insurance contract liabilities and assets established in previous years, which is used to identify any major causes of inadequate (re)insurance contract liabilities and to apply the lessons learned to the setting of these liabilities in the future.
Lapse risk: this is the risk of loss or adverse change in the value of insurance liabilities resulting from changes in the level or volatility of lapse rates. The Group and Sava Re are not materially exposed to this type of risk. This risk is mitigated primarily by maintaining good relationships with policyholders and cedants and by closely monitoring market conditions.
Catastrophe risk: this is the risk of a catastrophic event occurring; such events are rare, but their financial impact is too great to be covered by otherwise adequate premiums and provisions alone. Catastrophe risk may materialise in the case of extreme events or a large number of catastrophic events over a short period. The risk also includes an excessive geographical accumulation of risk. The Group’s portfolio is relatively well diversified geographically, with a slightly higher concentration of risks in Slovenia, which is further addressed through the reinsurance programme. This risk is managed by means of a well-designed underwriting process, by controlling risk concentration for products covering larger property against natural catastrophes and fire, by geographical diversification, and by adequate retrocession protection against natural and man-made catastrophes.
Sustainability risks: These also include climate change risks, which have recently become more and more relevant and are therefore receiving more attention at both the Group and company level. We carry out qualitative assessments, exposure analyses and longer-term scenario analyses, and we monitor the progress of their modelling. The knowledge gained in this area is then applied in setting insurance premiums, determining liabilities and assets from (re)insurance contracts and arranging sufficient reinsurance protection to keep risks within the risk appetite. Other underwriting risks, such as economic environment risk and policyholder behaviour risk, may be relevant, but their impact is already indirectly reflected in the non-life underwriting risk above.
We divide life underwriting risks into biometric risks, life expenses risk and life lapse risk.
Biometric risks: among these, mortality risk, which is the most significant risk for the Group, is the risk that the actual mortality of insured persons will turn out to be higher than that projected in the mortality tables used for premium pricing. It depends on the use of relevant statistics and the identification of insured persons whose health or lifestyle may increase their mortality risk. The procedures used to manage this risk include the consistent application of underwriting protocols, detailing deviations from the normal mortality risk, regular monitoring of exposures and the adequacy of the mortality tables used, and appropriate reinsurance protection.
Life expense risk: this is the risk that the actual cost of servicing life insurance contracts will be higher than that assumed in pricing. The level of risk depends on the use of appropriate statistics and an increase in the actual cost of servicing life insurance contracts. The Group manages the life insurance expense risk by periodically monitoring the expenses incurred in servicing life insurance contracts, monitoring the macroeconomic situation (e.g., inflation) and appropriately planning these expenses for the coming years.
Sustainability risks: these also include climate change risks, which have become increasingly relevant in recent years and can affect life insurance in a number of ways, including an increase in cancellations and surrenders, an increase in biometric risks (especially mortality and morbidity) and other impacts. We therefore take sustainability and climate change factors into account, among other things, when setting insurance premiums and making assumptions for the calculation of liabilities and assets from (re)insurance contracts.
Life insurance risks also include other biometric risks (longevity risk and disability and morbidity risk), revision risk and life-catastrophe risk. These risks are minor for the Group and are therefore not discussed in detail.
Health underwriting risks are divided into risks arising from health insurance pursued on a similar technical basis to non-life insurance (NSLT health insurance) and health insurance pursued on a similar technical basis to life insurance (SLT health insurance).
The Group manages NSLT-health underwriting risks using techniques similar to those used in non-life insurance, namely prudent underwriting, control of risk concentrations in accident and health products and appropriate reinsurance protection. SLT health insurance is very similar to life insurance; therefore, the Group manages the risks arising from SLT health insurance using similar techniques as for life insurance.
In their financial operations, individual Group companies are exposed to financial risks arising from their investment and underwriting portfolios relating to market, liquidity, credit risk and the risk of failure to realise guaranteed returns on the life insurance business.
As part of the management of market risk, the Group assesses interest rate risk, investment property risk, equity risk and currency risk.
Interest rate risk: this is the risk that the Group or a company will be exposed to losses resulting from fluctuations in interest rates. When interest rates change, the risk may materialise as a result of a decrease in the value of investments or an increase in liabilities. We try to avoid this by carrying out sensitivity analyses and by matching assets and liabilities, i.e., cash-flow matching.
Investment property risk: this is the risk of a change in the fair value of investment property owned directly or indirectly by the Group or a company. In addition to investment property, real-estate funds are also exposed to this risk.
Equity price risk: this is the risk that the value of investments will decrease due to fluctuations in equity markets. Shares as well as equity and mixed mutual funds are exposed to this risk. The Group manages the equity risk by diversifying this part of the investment portfolio across different capital markets and through a limit system that limits overexposure to the equity portfolio.
Currency risk: this is the risk that changes in exchange rates will reduce the value of assets denominated in foreign currencies or increase the value of liabilities denominated in foreign currencies. The Group and its companies manage currency risk through each company’s efforts to optimise the currency matching of assets and liabilities.
This is the risk that, owing to unexpected or unexpectedly high obligations, a company will not be able to meet all its financial obligations. The liquidity risk assumed by each Group company is monitored by regularly measuring and monitoring defined liquidity indicators. One of the indicators is the maturity matching of financial assets and liabilities. Liquidity requirements are met by allocating funds to money market instruments in a percentage consistent with the estimated normal current liquidity requirement. In order to cover the estimated liquidity buffer, a company ensures that at least 20% of its portfolio investments are invested in highly liquid assets.
This is the risk that an issuer of securities or other counterparty will default on its obligations. In the context of credit risk, each company and the Group address the excessive concentration of risk in a particular region, industry or issuer. Assets exposed to credit risk include financial investments (deposits, bonds, loans granted, bond and convertible mutual funds, and cash and cash equivalents) and other receivables.
The Group is exposed to the risk of failing to achieve the guaranteed return, specifically with investment contracts and with traditional and unit-linked life insurance business.
This is the risk of loss arising from inadequate or failed internal processes, human behaviour, systems or external events. To manage operational risks effectively, the Group companies have processes in place to identify, measure, monitor, manage and report on such risks.
The Group companies and the Group are exposed to various internal and external strategic risks that may have a negative impact on earnings or capital adequacy. Strategic risks also include reputational, project and sustainability risks as well as emerging risks. To prevent these risks from materialising, the Group companies mainly carry out preventive activities and have processes in place to identify, measure, monitor, manage and report on strategic risks to ensure that they are managed effectively. Strategic risks are also managed by continually monitoring the realisation of short- and long-term goals of Group companies and by monitoring upcoming regulatory changes and market developments.
The objective of internal auditing is to provide assurance and advice to the management board in order to add value and improve the effectiveness and efficiency of operations. Internal audit assists the Company in achieving its goals by systematically and methodically assessing the effectiveness and efficiency of the governance, risk management and internal control systems and making recommendations for their improvement.
The Company’s internal audit function is carried out by an independent organisational unit, the internal audit department (IAD), which reports to the management board and is functionally and organisationally separate from other units of the Company. This ensures the autonomy and independence of its work.
In accordance with the Slovenian Insurance Act and under an outsourcing agreement, Sava Re d.d. performs the key function of internal audit for the companies Zavarovalnica Sava d.d., Vita, Življenjska Zavarovalnica, d.d., Sava Pokojninska Družba d.d. and Sava Infond, Družba za Upravljanje, d.o.o. for an indefinite period.
In 2023, Sava Re’s internal audit conducted audits and performed other tasks in accordance with its annual work plan. Based on all the tests performed and the methodologies applied in the various audit areas, the internal audit department is of the opinion that Sava Re’s internal controls are adequate and their reliability is good. It is also of the opinion that Sava Re’s governance has proven to be appropriate and is being continuously improved to achieve key business goals, and that risks are well managed in terms of efficiency and economy of operations. However, there is still room for improvement in the way the system operates. The audit engagements revealed individual irregularities and weaknesses, to which the IAD drew attention and recommended corrective actions to improve control procedures, corporate governance and risk management. The IAD’s recommendations were actively implemented by those responsible. The aim is to improve the effectiveness of internal controls and the regularity of operations.
The standard audits also focused on the potential for fraud and the exposure or potential vulnerability of IT support to the business. They also looked at the use of ethical and sustainable behaviour. In areas subject to internal audit, internal control systems are in place and functioning to prevent fraud. The audits also made recommendations to improve the IT system.
The IAD reports quarterly to the management board, the audit committee and the supervisory board on completed audit engagements, the effectiveness and efficiency of control systems, corporate governance, risk management, identified breaches and irregularities and the status of recommendations. It has also prepared an annual report on its activities in 2023, which is part of the materials for the general meeting of shareholders.
An external quality assessment of the internal audit at Sava Re (conducted on a five-year basis) was conducted by Deloitte Revizija d.o.o. in 2019. The assessment of the IAD’s operation confirmed that the internal audit complies with the International Standards for the Professional Practice of Internal Auditing, the Code of Ethics of Internal Auditors and the Code of Internal Auditing Principles. In 2024, external quality assessments of internal audit functions are planned for all Sava Insurance Group companies.
As a result of the progress made, the IAD issued its second and improved overall opinion for the Company and the Group in 2023. Activities related to the implementation of the new software to support the overall internal audit process at the Sava Insurance Group level were further refined, and the software support was replaced. Improvements were also made to the Group Internal Audit in virtually all of the Group companies. The IAD regularly monitors the development and quality of the internal audit departments in the Group’s subsidiaries and provides them with the necessary professional support.
In 2023, we adopted a new strategy and plans to implement the new strategy covering the period 2023–2027. We continued our practice of conducting IT process maturity audits, combined with independent external peer reviews of operational performance, architecture and the implementation of system and solution configurations. We use feedback and insights to make improvements. These are then put into operation. Accordingly, we streamlined IT change management, IT architecture, internal controls and risk processes, and we improved the planning and monitoring of IT costs and investments.
In developing business applications, we maintained existing solutions in line with companies’ business and regulatory requirements. We continued the project to replace the core IT solution for insurance and entered the final phase of the project to replace the core IT solution for reinsurance. At the Group level, we increased the number of shared solutions and the use of a common central data centre.
In business intelligence, we provided ongoing business support, upgraded existing solutions and completed the IFRS 17 regulatory reporting project. In line with the strategic priorities for the 2023–2027 strategy period, we upgraded the consolidated data warehouse solution by expanding the scope of data sources and reports.
and hardware infrastructure was upgraded in line with the business plan, the amortisation cycle, day-to-day service requirements and planned IT development projects, with more time spent on the architectural design of the various concepts.
In the area of information security, we upgraded sensors and controls in the 24/7 security operations centre and continued to test and deploy new security solutions. We run regular exercises to protect against social engineering attacks and train key personnel how to respond to a crisis in the event of a cyber-attack.
In terms of business continuity, we carried out all planned preventive and control activities, taking into account the increased use of hybrid work. We take sustainability into account when planning new investments, by reducing the size of applications and centralising the use of shared infrastructure (in-house and cloud). Our business solutions enable hybrid access (remote or from home) for both customers and employees, reducing the need for transport.
In accordance with the GRI Standards, the 2023 sustainability report of the Sava Insurance Group analyses economic, social and environmental aspects.
Sustainability reporting is integrated into individual sections of the annual report. Disclosures are specially indicated with interactive references. This section provides disclosures and business impacts not covered by other sections of the annual report. In addition to general disclosures and in accordance with prescribed principles, it provides disclosures on the economic, social and environmental aspects that are of vital importance for the Group and relate directly to the Group’s strategy.
Disclosures in accordance with the GRI standard refer to all Group companies wherever possible and, if not, to the parent company and its EU-based subsidiaries.
No statements or information from the previous report have changed on account of new findings, and the report therefore contains no corrections.
Sava Re did not seek external assurance of the sustainability report in 2023.
By providing non-financial information in accordance with the GRI standards, the Annual Report of the Sava Insurance Group and Sava Re d.d. for 2023 complies with (i) Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups or NFRD (Non-Financial Reporting Directive), (ii) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 in conjunction with Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation, and (iii) the Slovenian Companies Act.
We have been integrating sustainable development into the Sava Insurance Group strategy since 2017; since then we have given increasing attention to it as environmental, social and governance risks (ESG risks) significantly impact the insurance industry while offering new opportunities in the development of operations.
In December 2022, we adopted the Sustainable Development Strategy of the Sava Insurance Group for 2023–2027, which outlines sustainable development as one of the three key pillars of the Group’s further development.
The Sava Insurance Group’s objectives and sustainable development strategy are rooted in its values, mission and vision. Our goal for the strategy period was for stakeholders to recognise the Group as:
The following principles guide us in the implementation of the Group’s key sustainable development policies:
It guides investors to make responsible investment decisions.
At the Sava Insurance Group, we have set the following sustainable strategic objectives for 2023–2027, taking into account ESG criteria and gradually and systematically integrating them into the Group’s decision-making processes:
Throughout 2023, intensive preparations were also made at the Group level for the new regulation on CSRD sustainability reporting and ESRB standards.
The Group was preparing for the introduction and implementation of legal requirements according to these legal acts:
In addition to closely following and complying with legal requirements on sustainable development, we also draw your attention to the following developments:
In terms of sustainable development, cooperation with stakeholders is also of key and strategic importance for the Sava Insurance Group. It is important that we identify the most important stakeholder groups and understand their views on dealings with us.
At the end of 2022, we surveyed the Sava Insurance Group’s stakeholders on key sustainability areas to identify those in which the Group has a significant economic, environmental and social impact and which significantly impact our business and stakeholder relationships.
In addition to the parent company, ten Group companies and one subsidiary carried out stakeholder surveys. We surveyed stakeholder groups that we identify as key:
We analysed the responses of more than 1,000 Group employees and 900 stakeholders from other groups. Their views are presented in a matrix of key topics for the Group.
| No. | Y-axis: Assessment by stakeholders Score | X-axis: Assessment by Group employees Score | ||
|---|---|---|---|---|
| 1 | Human rights | 9.30 | Employee health and satisfaction | 9.59 |
| 2 | Diversity and equal opportunities | 9.23 | Diversity and equal opportunities | 9.43 |
| 3 | Employee health and satisfaction | 9.22 | Employee training and development | 9.26 |
| 4 | Employee training and development | 9.08 | Human rights | 9.24 |
| 5 | Long-term stability and profitability | 9.07 | Cyber threats |
9.09
9.02
9.07
8.95
9.07
8.99
8.85
8.95
8.71
8.82
8.59
8.49
8.36
8.38
8.23
8.23
7.92
8.11
7.73
7.91
The following section of the report outlines the most important stakeholder groups and forms of engagement with them.
We cultivate responsible and sincere relations with all our stakeholders. In doing so, we follow the recommendations and rules of public reporting, the code of ethics and internal rules.
| Stakeholders | Type of involvement | Objectives | The most important activities in 2023 |
|---|---|---|---|
| Sava Insurance Group employees | • Employee participation (works council and unions) • Internal formal events (strategic conferences, professional and educational events) • Internal informal events • Internal training / consultations • Management by objectives (annual performance appraisal interviews) • Internal web and print media • Thinking out of the box • Electronic mail • Social networks • Personal contact • Opinion polls / questionnaires • Sports societies • Corporate volunteerism | • Information, awareness • Stimulating ideas to improve the work environment and business processes • Two-way communication • Culture building, improving relations and fostering a good organisational climate • Pursuing the CO2 reduction target • Building on the Never Alone employer brand in internal communication • Informing all employees of pressing ESG issues by email • Ongoing dialogue with employee and trade union representatives | • Events, conferences, lectures • Departmental meetings • Addresses by the chairman of the management board of Sava Re to all employees of the Group by email • Development of the Heart for the World initiative in terms of corporate volunteerism, education, and awareness-raising on environmental and social issues – 5,114 hours of volunteering |
Economic performance, defined by the strategic goals in all areas and reported more extensively in the financial part of the report, is the key performance indicator for the operations of the Sava Insurance Group. This is achieved through timely risk identification and management. We believe that both financial and non-financial risks have an impact on the economic performance of companies.
| EUR million | 2023 | 2022 | Index 2023/2022 |
|---|---|---|---|
| Economic value generated* | 867.6 | 729.9 | 118.9 |
| Economic value distributed | 827.4 | 705.2 | 117.3 |
| Insurance service expenses, net of costs, and expenses for reinsurance contracts held | 510.6 | 411.2 | 124.2 |
| Investment expenses | 30.8 | 49.2 | 62.6 |
| Other expenses | 5.5 | 0.4 | 1,287.0 |
| Operating expenses** | 137.7 | 114.6 | 120.2 |
| Dividend payouts | 24.9 | 23.4 | 106.7 |
| Income tax expense | 15.0 | 11.6 | 129.2 |
| Investments in the social community (prevention, donations, sponsorships) | 4.2 | 5.1 | 81.5 |
| Employee payments, allowances and benefits | 98.7 | 89.7 | 110.0 |
| Economic value retained | 40.1 | 24.6 | 163.1 |
** Operating expenses = attributable expenses, non-attributable expenses and expenses of non-insurance companies, excluding personnel costs, sponsorship, prevention and donations.
As a sustainability-oriented partner, Sava Insurance Group also strengthens its social responsibility to the wider community through sponsorship and donation projects. Prevention activities encourage stakeholders to identify different risks, thus contributing to the safety of health, life and property. For more, refer to section 13.4 “Responsibility to the community”.
When managing its investment portfolio, the Sava Insurance Group is committed to sustainability by:
The integration of environmental, social and governance (ESG) considerations into the investment process is described in the Sustainability Investment Policy of the Sava Insurance Group. This policy defines:
The UNPRI promotes the integration of ESG considerations into investment decision-making processes, and its signatories are committed to adhering to the UNPRI’s six core principles and reporting on their progress. The Group will report publicly on its compliance with the UN PRIs for the first time in 2024.
The UN Global Compact addresses human and labour rights, the natural environment and anti-corruption. At the Group level, we are committed to incorporating such principles and guidelines into our investment process, and in the future, as more detailed information becomes available, we will define the criteria for excluding such investments from our portfolio.
The investment portfolio includes all financial investments, investment property, and cash and cash equivalents, but excludes investments in subsidiaries and associates, and mutual funds covering unit-linked life insurance liabilities where the investment risk is borne by the policyholders.
The investment portfolio for which compliance with the sustainability investment policy is verified (the investment portfolio captured) includes all financial investments with the exception of deposits, loans and government securities. Also excluded are investment property, investments in subsidiaries and associates, cash and cash equivalents, and mutual funds covering unit-linked life insurance liabilities where the investment risk is borne by the policyholders.
| EUR | Value of non-aligned investments | Total |
|---|---|---|
| Non-life | 4,707,095 | 298,725,406 |
| Traditional life | 21,400,954 | 255,163,668 |
| UL with guaranteed NAVPS | 0 | 18,871,571 |
| Investment portfolio captured | 26,108,049 | 572,760,644 |
| As % of portfolio captured | 4.6% | 100.0% |
| As % of investment portfolio | 1.7% | 36.6% |
| Number of non-aligned investments | Total | ||||||
|---|---|---|---|---|---|---|---|
| Non-life | 3 | 294 | |||||
| Traditional life | 16 | 318 | |||||
| UL with guaranteed NAVPS | 0 | 33 | |||||
| Investment portfolio captured | 19 | 645 |
The tables show that as at 31 December 2023, the Group had 19 investments in its investment portfolio with a carrying amount of EUR 26.1 million that are not aligned with the Sustainability Investment Policy of the Sava Insurance Group, representing 1.7% of the Group’s investment portfolio and respecting the defined tolerance of 3% of the investment portfolio.
We also focus on the risks associated with greenhouse gas (GHG) emissions. The first step in this effort is to stop investing in economic activities such as the production of coal for heating and shale oil.
In 2023, key performance indicators to measure GHG emissions in the investment portfolio were established and measured for the first time. We have analysed the investment portfolio in such a way as to identify the companies that contribute most to GHG emissions. The measurements made are limited by the coverage of GHG emissions data in investee companies and range from 20% to 24%, depending on the indicator. In the future, the Group will work to establish further measures to reduce or mitigate the GHG emissions in the investment portfolio and to meet the targets set out in the sustainable development strategy.
ESG investments include bonds issued to finance green and environmental projects (green bonds) and sustainability bonds issued to fund the green and social sustainability objectives of issuers. ESG investing also covers mutual funds that adhere to ESG principles and alternative funds that clearly adhere to ESG principles, including by signing the UN PRIs.
We prioritise investments that are in line with ESG principles.
The Group’s ESG investments have increased by EUR 43 million from EUR 211.8 million at the end of 2022 to EUR 254.8 million at year-end 2023, or from 14.9% of the portfolio at the end of 2022 to 16.9% of the portfolio at year-end 2023.
| EUR | Uncalled commitment | Called up already | Total | Total investments called up or already made as % of the Group’s total investment portfolio |
|---|---|---|---|---|
| Infrastructure funds | 3,467,053 | 51,231,961 | 54,699,014 | 3.4% |
| Real estate funds | 0 | 14,625,508 | 14,625,508 | 1.0% |
| Direct infrastructure projects | 0 | 338,858 | 338,858 | 0.0% |
| Private debt funds | 444,447 | 4,555,553 | 5,000,000 | 0.3% |
| ESG (green and sustainable) bonds | 0 | 172,893,245 | 172,893,245 | 11.5% |
| Bond mutual funds | 0 | 6,494,309 | 6,494,309 | 0.4% |
| ETFs | 0 | 4,626,781 | 4,626,781 | 0.3% |
| Total | 3,911,499 | 254,766,215 | 258,677,714 | 16.9% |
Regulation (EU) 2019/2188 (SFDR) requires financial market participants to publicly disclose their sustainable management policies. It also requires disclosure of how sustainability risks are integrated into investment decisions and how the company addresses the principal adverse impacts of its investment decisions on sustainability factors.
In line with the SFDR requirements for these disclosures, Group subsidiaries and associates that met the criteria of a financial market participant in 2023 updated their pre-contractual disclosures in financial products accordingly and defined their approach to the principal adverse impacts of their investment decisions. In accordance with Article 4(3) of SFDR, which applies to companies with an average annual number of employees of more than 500, Zavarovalnica Sava published information on its due diligence policies regarding the principal adverse impacts of investment decisions on sustainability factors (the Principal Adverse Impact Statement – PAI) on its website.
In 2020, Regulation (EU) 2020/852 was adopted as the regulatory framework for promoting sustainable investments, better known as the EU Taxonomy. The regulation aims to promote transparency of sustainability disclosures for financial market participants and the rest of the business community.
The EU Taxonomy is a classification system that helps companies and investors identify “environmentally sustainable” economic activities and make sustainable investment decisions. Environmentally sustainable activities are those that make a significant contribution to at least one of the EU’s six environmental objectives, without significantly harming the other five, are carried out in compliance with minimum safeguards and meet technical screening criteria. An economic activity that meets the above requirements is considered to be Taxonomy-aligned.
The Group has already disclosed in its 2021 and 2022 annual reports the proportion of exposure to EU Taxonomy-eligible economic activities, as required by Delegated Regulation 2021/2178 on disclosures. Economic activity is considered to be eligible if it is identified by the Climate Delegated Regulation and, in the future, by the Environmental Delegated Regulation as having a high potential to contribute to at least one environmental objective, regardless of whether it meets the technical criteria set out in these regulations.
However, from 2024, financial undertakings are required to disclose the proportion of exposure to EU Taxonomy-aligned economic activities, and a range of other sustainable investment information, in line with Article 8 of the EU Taxonomy, and the Group is following this requirement. An economic activity that meets the above requirements is considered to be Taxonomy-aligned.
The content and presentation of the information that companies are required to disclose on environmentally sustainable economic activities and the methodology for fulfilling these disclosure obligations are set out in the Disclosures Delegated Regulation. In this respect, the Group discloses below one of its key performance indicators, the proportion of EU Taxonomy-aligned investments, which is the weighted average of the value of all investments aligned with this Taxonomy over the so-called captured assets.
Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation (OJ L 443/2021 of 10 December 2021) – Disclosures Delegated Regulation.
Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives – Climate Change Delegated Regulation.
Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, or to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives and amending Commission Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities – Environmental Delegated Regulation.
For investments in mutual funds, exchange-traded funds (ETFs) and alternative funds (infrastructure funds, real-estate funds and private debt funds), the Group implemented a look-through approach to ensure that the EU Taxonomy alignment is calculated for each investment in these funds. The look-through approach was applied to level 1 investments in the fund. The Group did not apply the look-through approach to 5.9% of all funds as information on the breakdown of the funds into individual investments was not available.
The alignment of investments with the EU Taxonomy in 2023, based on revenue, was 1.57% of the assets covered or EUR 21.0 million. Meanwhile, the alignment of investments with the EU Taxonomy, based on capital expenditure, was 2.87% of the assets covered or EUR 38.2 million.
Information on the alignment of investments with the EU Taxonomy is provided by an external data provider, Moody’s Analytics, which relies exclusively on data obtained directly from companies and does not use estimated data.
Detailed information at the investment portfolio level is presented below in relation to the requirements of the EU Taxonomy as defined in template 2 of annex X to the Disclosures Delegated Regulation. The remaining disclosures required by the Disclosures Delegated Regulation are set out in appendix C to the annual report. It was not possible to obtain the information required by annex XII to the Disclosures Delegated Regulation. Sava Re will disclose the data from annex XII in subsequent reporting periods when they become available.
| The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI (%) | Turnover-based: | 1.57% | 20,965,625 | |||||
|---|---|---|---|---|---|---|---|---|
| Capital expenditures-based: | 2.87% | 38,238,940 | ||||||
| The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. | The monetary value of assets covered by the KPI (EUR). Excluding investments in sovereign entities. | Coverage ratio: | 98.24% | 1,331,208,352 |
| The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI (%) | Turnover-based: | 3.37% | 4,867,511 | ||
|---|---|---|---|---|---|
| Capital expenditures-based: | 5.34% | 7,718,052 | |||
| The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. | The monetary value of assets covered by the KPI (EUR). Excluding investments in sovereign entities. | Coverage ratio: | 30.62% | 144,634,594 |
The low percentage of alignment is due to the discrepancy between the investments included in the numerator and denominator of the KPI. The numerator, unlike the denominator, does not include exposures to companies not subject to the requirements of Articles 19a and 29a of the Accounting Directive (2013/34/EU) and exposures to derivatives, but consequently includes a smaller number of investments than the denominator.
The calculation is also limited by the low coverage of the investment portfolio with data on the alignment of companies with the EU Taxonomy. The limited database of companies for which the external provider provides data is one of the reasons for this. In addition to large companies that are already subject to Taxonomy-alignment reporting, the investment portfolio also includes small and medium-sized companies that are not yet subject to such reporting. In view of the above, it is reasonable to expect that data coverage will improve as regulatory requirements are extended to more companies and information on the alignment of investments with the EU Taxonomy becomes more relevant.
Climate change poses a serious risk to society and the economy and has a significant impact on the activities of insurance and reinsurance companies, affecting the ability of policyholders to take out insurance, and the underwriting, operating and investing activities of insurers.
The Sava Insurance Group and Sava Re are directly and indirectly exposed to climate change risks as a result of their operations, so it is crucial to monitor and manage these risks. The Group and the Company monitor climate change risks, including physical and transition risks. Physical risks are those that arise from the physical effects of climate change. Transition risks are those that arise from the transition to a low-carbon and climate-resilient economy.
Physical risks are extremely important, as the harmful effects of global warming on natural and human systems are already visible today. Without further international climate action, the average global temperature will continue to rise, and so will the unpredictability of damage associated with the risk of natural disasters. This may result in higher underwriting risk and, consequently, the need to change business strategies. Also significant is transition risk, which relates to potential material negative impact on the value of investments and other significant effects on business operations.
Both transition risk and physical risks are and will continue to be of great importance to the Group and its companies, so they are subject to constant Group-level monitoring. Climate risks are also addressed (qualitatively and quantitatively) in the own risk and solvency assessment (ORSA).
Inthe non-Group reinsurance portfolio, SavaRe suffered five loss events for which itsshare of the loss exceeded EUR 1 million. More severe natural catastropheshave further tightened reinsuranceconditions, which can make it more difficult to underwrite reinsurance. Investmentsin sustainable development and preventive activities(renewables and awareness-raising among policyholders) will continue to be factors that will have a significantimpact on thescope and scale of losses due to natural disasters.
Ecological (increasingpressure on the environment due to population growth, pollution fromwaste and other ecological issues), climate (greenhouse gasemissions and extremeweather events) andsocial changes (introductionof new technologies, changes in legislation, demographic trendsand population migration) are shaping anew landscapefor the development of new productsand underwriting. This leads to:
In2023, we continued to expand some of the SavaInsurance Group’s products with astrong sustainability component. Inaddition to the solarpanel insurance already marketedby the Slovenian part of theSava Insurance Group, subsidiaries in Serbia, Montenegro and NorthMacedonia also started to develop such products in 2023.
Insurance companies operating in markets subjectto European regulation carry out ongoing assessments of compliance with sustainability factorsfor eachnew orrenewed insurance product. Their findings are set out in separate documentsdealing with the oversight andgovernance arrangements for these products.
Inline with the criteria alreadydeveloped to identify sustainability factors, when developing new insurance productsor modifying existing ones,insurers operating in markets subject to Europeanregulation assesswhether each new or modifiedinsurance product meetsany ofthe sustainability factors.They also assesstheir direct or indirect impact on the environment,society, employee issues andrespect for human rights. For eachnew ormodified insurance product, the product approval processmust identify the target market and thegroup of compatiblecustomers. The target market must beidentified by taking into account the characteristics, risk profile, complexity and natureof the insurance product, and its sustainability factors.
The Taxonomy andSFDR have standardised thecriteria for the entire European market. Sustainability factors in financial products areclear and prevent greenwashing. The Sava Insurance Group keeps track of regulationsand implements them in a timely manner (relevant disclosures,adoption of relevant policies, etc.).
Asthe Group’s insurers and reinsurer, we recognise the importance ofenvironmental risks, andwe arecommitted to adopting andintroducing internal regulationsthat will contribute to responsible underwriting of environmental, social and governance risks in non-life insurance.
Inaccordance with the Sava Insurance Group Guidelines for Responsible Underwriting Environmental, Social and GovernanceRisks in Non-Life Insurance Business, adopted in 2022, our main focus in 2023 was to find ways to improve the monitoringand reporting system in relation to these guidelines. Inthis respect,we have taken some steps to increase automation in this area while making thepurpose ofthe guidelines more transparent to help stakeholders better understand environmental, socialand governance risks.
Group companies have prepared reports in accordance with these guidelines, which also includeinformation on cases requiring special attention in theunderwriting process. These are casesdefined in theguidelines as “potentially high or imminentrisk”. We found atotal of899 such cases in the Group, while the share ofthe premium related to these cases represents around 0.33%of the total non-life premium. In thisrespect, companies in anunderwriting environment also monitor the profile of such policyholdersto the extent possible, meaningthat if theyperceive that the policyholders’ system for managing risks is ineffective, they will refuse to underwrite those risks.
Inaddition to theinsurance business, the guidelines have also been taken into account in the reinsurance business, together with any necessary conforming changes.
Inreinsurance, based on the above guidelines, we monitored transactions exposed to ESG criteria atthe time of reinsurance underwriting, in particular for the non-Group facultative reinsurance.In the non-Group treaty reinsurance, we have been looking for new reinsuranceopportunities that would have a positive impact on sustainability.
Giventhe increasing complexity ofthe decision-making process with regard to ESG criteria, we have continuedto establish an appropriate data collectionsystem within the Group in order to introduce the guidelines for responsible insurance portfolio management andto ensure theprovision ofrelevant data in accordance with existing and emerging regulations.We have also taken steps to standardise the way we report andmonitor the impact of theintroduction ofESG criteria. The Group also follows theTaxonomy reporting commitment, where disclosuresare linked to the proportionof Taxonomy eligibility.
The Sava Insurance Group offers the following insurance coverages:
| Consolidated gross premiums written as a percentage of premiums by class of business* | EUR | Gross premiums written | 2023 | 2022 | Index | Share | |
|---|---|---|---|---|---|---|---|
| 1 | Medical expense insurance | 17,820,110 | 12,802,027 | 139.20 | 2.56% | ||
| 2 | Income protection insurance** | 0 | 3,230,277 | 0.00 | 0.00% | ||
| 3 | Workers’ compensation insurance | 17,028,861 | 23,805,490 | 71.53 | 2.45% | ||
| 4 | Motor vehicle liability insurance | 165,750,692 | 137,553,034 | 120.50 | 23.81% | ||
| 5 | Other motor vehicle insurance | 93,518,266 | 73,431,760 | 127.35 | 13.43% | ||
| 6 | Marine, aviation and transport insurance | 7,053,876 | 15,063,293 |
| 7 | Fire and other damage to property insurance | 151,519,399 | 182,211,159 | 83.16 | 21.77% |
|---|---|---|---|---|---|
| 8 | Assistance | 31,405,947 | 24,906,233 | 126.10 | 4.51% |
| 9 | Total (1–8) | 484,097,150 | 473,003,272 | 102.35 | 69.54% |
| 10 | Other non-life | 212,042,985 | 38,568,918 | 549.78 | 30.46% |
| 11 | Total non-life | 696,140,135 | 511,572,190 | 136.08 | 100% |
| 12 | Life insurance | 189,518,285 | 176,006,776 | 107.68 | |
| 13 | Total | 885,658,420 | 687,578,966 | 128.81 |
** The data in the table related to the activity under item 2 of the table (income protection insurance) take into account the clarification of the European Commission of 21 December 2023 (Draft Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets – third Commission Notice), which foresees the entry of zero value in cases where it is not possible to capture certain data.
The remaining disclosures required by the Disclosures Delegated Regulation are set out in appendix D to the annual report. It was not possible to obtain the information required by annex XII to the Disclosures Delegated Regulation. Sava Re will disclose the data from annex XII in subsequent reporting periods when they become available.
Group companies coordinated the procurement policy and made it more uniform, which involves strategic priorities and principles governing a transparent procurement process. The sustainability objectives of the procurement process are:
Internal regulations prescribe the inclusion of an anti-corruption clause in all purchase agreements. When ordering, taking over and paying for goods, we follow the four-eyes principle, which ensures a high degree of individual control over the business procurement process. At Sava Re, we assess the risk inherent in procurement on a quarterly basis. In 2023, a new questionnaire was developed and validated in line with the requirements of European standards to verify the suppliers’ sustainability. The questionnaire will be sent to existing and new suppliers of Group companies with an expected annual turnover of at least EUR 5,000 including VAT via a proprietary application for completion in 2024. The general terms and conditions of business cooperation, which were renewed in 2023 and generally constitute an integral part of every purchase, also emphasise the concern for the company’s sustainable development. Mechanisms for monitoring suppliers’ sustainability are also included in the updated internal regulations governing the business procurement process in all Group companies. Suppliers’ sustainability was also one of the main topics at the procurement conference, attended by procurement officers of all Group companies.
Group companies’ suppliers are mainly providers of consulting services, IT maintenance and upgrade services, office supplies, small tools, computer hardware and software, and company cars. All Group companies are required to partner with local suppliers by the very nature of the business and the need to establish long-term partnerships in their own communities. The local market of any Group member is the entire country in which its head office is situated.
To a lesser extent, some of the purchases are also made outside their home country (in particular for goods and services that cannot be sourced in their home country or are offered at non-competitive prices). In the case of producers or service providers from other countries, business relationships are established through local agents or representatives. Frequently, looking for suppliers in foreign markets is not reasonable because companies can make purchases under better conditions and with less risk with local suppliers.
One of the objectives of the Group’s procurement policy is the collaboration of companies in joint procurement. This most often involves companies registered in the same country. IT solutions are generally purchased and developed at the Group level. Joint procurement optimises the procurement process, reduces costs and mitigates risks in the products or services purchased. At the same time, we facilitate the sharing of expertise, experience and best practices between Group companies.
The Sava Insurance Group ensures a competitive and transparent supplier selection process by sending requests for quotations to a number of potential suppliers and by increasing the responsibility and authority for decision-making regarding the selection of suppliers based on the estimated value of the goods. Special attention is paid to the development of quality criteria, mutual cooperation, creation of synergy and price competitiveness (rebate scales and similar), all of which are considered an appropriate basis on which to assess suppliers.
The Company’s or Group’s procurement policy is also governed by several other internal regulations which set out procedures and instructions. These include the fleet management policy, the rules on procurement, use and maintenance of company vehicles, the rules on the use of information technology assets, and similar. Sava Re and all Group companies settle their obligations to suppliers within agreed deadlines.
In 2023, Sava Re was again granted a partial 30% exemption from the payment of employer’s contributions for employees who reached the age of 60 and the exemption from the payment of the employer’s share of social security contributions on employment contracts concluded for an indefinite period. These refunds totalled EUR 5,944 (2022: EUR 9,326).
Sava Re also set up a collective voluntary supplementary pension insurance scheme funded by the employer and has a contract in place on the accession to the pension company’s pension scheme, registered in the pension scheme register at the Financial Administration of the Republic of Slovenia. Based on these contracts, the Company pays a voluntary supplementary pension insurance premium for those employees who have joined the pension scheme and are thus entitled to a reduced income tax base for the amount of the voluntary supplementary pension insurance premium paid in the tax year for its employees to the pension scheme provider. The total value of this tax relief was EUR 214,326 (2022: EUR 201,720).
Subsidiaries exercise incentives or reliefs in accordance with local legislation (employment of the disabled, inclusion of employees in the pension schemes, etc.).
The Tax Policy of the Sava Insurance Group was developed and adopted in 2023. The Group is committed to sustainability-oriented operations in accordance with legislation and its own commitments. The tax policy was adopted to define the implementation of a policy of tax compliance with legal tax frameworks, tax ethics, tax principles and best tax practices in the tax jurisdictions in which the Group operates.
The Group’s tax policy provides a framework for tax governance that ensures that the Group’s conduct in tax matters is guided by clear principles, values and rules that enable each employee and each Group company to make appropriate decisions in compliance with tax laws. Therefore, the fundamental purpose of the policy is to set expectations and responsibilities within the Group to ensure that its tax practices are socially responsible.
The primary objective of the Group’s tax policy is to ensure compliance with the applicable tax regulations in all jurisdictions in which the Group operates, in accordance with the activities carried out in each jurisdiction. This principal objective of respecting and complying with tax rules must be aligned with the principles of corporate governance and the operation of Group companies. The Group’s tax policy promotes responsible tax behaviour, which means taking into account the Group’s business interests and the development of the community in which it is involved, thus ensuring the application of best tax practices.
The tax policy sets out the Group’s tax ethics, tax principles and general rules for tax governance. The basic principle of the Group’s code of ethics is to act honestly, ethically and in accordance with the law, the company’s internal regulations and corporate governance guidelines. In line with this basic principle, which is reflected in all of the Group’s established tax principles:
| Tax jurisdiction / type of tax | 2023 (EUR) |
|---|---|
| Slovenia | 11,243,747 |
| Croatia | 0 |
| Montenegro | 778,206 |
| North Macedonia | 530,887 |
| Kosovo | 349,506 |
| Serbia | 29,994 |
| Total | 12,932,340 |
| Taxes on emoluments paid to natural persons (employer contributions and taxes) | 7,766,822 |
| Taxes and contributions withheld and paid on behalf of employees | 22,325,936 |
| Value added tax | 8,542,663 |
| Slovenia | Croatia | Montenegro | North Macedonia | Kosovo | Serbia | Total |
|---|---|---|---|---|---|---|
| 39,762,200 | 1,839,792 | 1,576,344 | 0 | 304,433 | 1,552,878 | 45,035,647 |
| Slovenia | Croatia | Montenegro | North Macedonia | Kosovo | Serbia | Total |
|---|---|---|---|---|---|---|
| 5,624,925 | 23,958 | 27,383 | 318,714 | 0 | 0 | 5,994,980 |
| Slovenia | Croatia | Montenegro | North Macedonia | Kosovo | Serbia | Total |
|---|---|---|---|---|---|---|
| 64,924 | 0 | 0 | 0 | 0 | 0 | 64,924 |
| Slovenia | Croatia | Montenegro | North Macedonia | Kosovo | Serbia | Total |
|---|---|---|---|---|---|---|
| 333,954 | 0 | 14,268 | 0 | 0 | 10,029 | 358,251 |
| Slovenia | Croatia | Montenegro | North Macedonia | Kosovo | Serbia | Total |
|---|---|---|---|---|---|---|
| 7,380 | 262,919 | 10,440 | 0 | 0 | 3,910 | 284,649 |
| 87,862,280 | 3,723,277 | 3,028,191 | 2,481,890 | 2,943,196 | 3,267,378 | 103,306,212 |
|---|---|---|---|---|---|---|
| Tax jurisdiction / type of tax | Slovenia | Croatia | Montenegro | North Macedonia | Kosovo | Serbia | Total |
|---|---|---|---|---|---|---|---|
| Corporate income tax paid | 17,134,075 | 0 | 340,540 | 133,326 | 229,398 | 121,759 | 17,959,098 |
| Taxes on emoluments paid to natural persons (employer contributions and taxes) | 7,380,457 | 579,275 | 59,026 | 112,485 | 0 | 24,833 | 8,156,076 |
| Taxes and contributions withheld and paid on behalf of employees | 19,787,061 | 707,956 | 904,225 | 1,300,861 | 429,810 | 1,138,422 | 24,268,335 |
| Value added tax | 6,057,261 | 103,427 | 153,301 | 53,197 | 1,506,804 | 132,679 | 8,006,669 |
|---|---|---|---|---|---|---|---|
| Insurance premium tax | 32,171,006 | 1,530,713 | 1,348,363 | 0 | 286,990 | 1,263,202 | 36,600,274 |
| Fire brigade charge | 3,475,964 | 23,716 | 40,473 | 291,857 | 0 | 0 | 3,832,010 |
| Financial services tax | 90,511 | 0 | 16,944 | 0 | 0 | 0 | 107,455 |
| Fee for use of building land | 303,328 | 0 | 668 | 0 | 0 | 7,240 | 311,236 |
| Other charges | 12,586 | 205,153 | 11,390 | 0 | 0 | 60,250 | 289,379 |
| Total | 86,412,249 | 3,150,240 | 2,874,930 | 1,891,726 | 2,453,002 | 2,748,385 | 99,530,532 |
At the Sava Insurance Group, we are aware of our responsibility to our employees and have made it a fundamental goal of our sustainable development strategy to act in such a way that we are recognised by our stakeholders as a socially responsible and attractive employer in the region. In section 9 “Human resource management”, we report in detail on matters related to employees or HR affairs.
To manage the process of providing services, all companies have in place rules, protocols or instructions that have a pivotal role in ensuring quality and, in turn, customer satisfaction: for underwriting, claims settlement, instigation of recourse proceedings and complaints resolution. In accordance with applicable regulations, there is also a description of the procedures for providing information on insurance products or services.
At the Sava Insurance Group, we strive to meet our customers’ expectations with our products and services, and this is reflected in the awards and commendations. Here are some of the most notable:
Four Sava Infond funds received a total of six awards as the best fund in their category at the Moje Finance magazine awards for the best mutual funds marketed in Slovenia. In addition, Damjan Kovačič received the title “Best-performing Fund Manager in Slovenia” for his excellent management of the Infond Družbeno Odgovorni (Socially Responsible) Fund, an equity sub-fund.
In 2023, the company was awarded the European title of “Small Pension Fund” by Investment & Pensions Europe and the title of “Best Pension Company in North Macedonia 2023” by World Finance.
The SavaFit incentive programme, through which the insurance company strengthens its concern for the health of its policyholders by motivating them to be physically active through discounts on insurance premiums and benefits offered by selected partners, was awarded the silver plaque “Best Innovation of the Podravje Region 2023”.
In 2023, we focused on optimising e-commerce customer service and introducing new central services for customer data management. We expanded our existing services to include a centralised consent management service and continued the development of a centralised authorisation management service.
We supported ongoing customer communication campaigns with a communication campaign management solution and an automated e-communication solution, giving us both a better overview of overall customer communication and greater control over communication at key moments in the policy and investment lifecycles.
92 GRI 3-3.
93 GRI 3-3.
Important milestones in communicating information to customers were Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector (SFDR) and Regulation (EU) 2020/852 on technical standards (Taxonomy), which regulates the assessment of sustainable investments. The SFDR requires financial market participants and financial advisors offering financial products to publish written policies on the integration of sustainability risks and to ensure the transparency of such integration.
In accordance with the SFDR, the financial service providers of the Sava Insurance Group (Zavarovalnica Sava and Vita, Sava Pokojninska and Sava Infond) provide detailed information on investment decisions and their impact on sustainability in the context of customer communication and information on their websites and in the pre-contractual disclosures of their financial products.
In accordance with adopted regulations, the sustainability factors of the insurance products offered by the financial service providers of the Sava Insurance Group are presented in a comprehensive and transparent manner. This enables financial service providers to provide relevant information to the distributors of their products, who in turn communicate this information to existing and potential customers of the Sava Insurance Group as part of their business activities.
As part of the amendments to Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution, which regulate the inclusion of sustainability factors and sustainability risks and preferences in the requirements for product supervision and governance, and in the business rules and investment advice for investment insurance products, the insurance companies of the Sava Insurance Group in the relevant markets (Slovenia and Croatia) take sustainability factors and objectives into account in the processes of development or approval of an insurance product, determination of its target market, distribution method, governance and supervision. These insurance companies regularly publish documents on their websites detailing the sustainability factors of their products.
The Sava Insurance Group is obligated to comply with extensive legal and regulatory requirements as well as voluntary obligations. More than 3,000 employees working in Group companies are obliged to abide by these rules. The compliance function ensures that this commitment is implemented in practice, namely by creating rules, raising awareness, monitoring compliance with the rules and upholding integrity.
Like the Sava Insurance Group, the compliance function is also decentralised. Each company has its own key compliance function holder, and these are overseen by the Sava Insurance Group compliance function holder. Roles, responsibilities and minimum standards are defined by the Sava Insurance Group’s compliance policy. Function holders in each company are responsible for monitoring the legal situation, making recommendations for the adoption of relevant measures, identifying and assessing compliance risks, adopting measures to prevent violation of the rules, providing advice to employees, and monitoring existing processes and potential compliance incidents. The Group-level function holder provides recommendations to function holders in subsidiaries, and assists and monitors them in fulfilling their obligations.
To ensure compliance across the Group and continuous improvement of the compliance system, all compliance function holders normally meet once a year. External experts are also invited as speakers, and together they discuss topics, such as a comprehensive overview of the compliance management system, international standards and best practices with a focus on the role of compliance function holders and providers, characteristic compliance risk areas, how to perform compliance reviews and fulfil other duties of the compliance function holder, the EU Whistleblower Protection Directive and its effects on a company’s business, other relevant EU and local regulations, and similar.
Each month, compliance function holders in all non-Slovenian subsidiaries report to the Group-level function holder on new or amended regulations that affect the business operations of the relevant company. The list contains the name of the regulation, a brief description of essential changes affecting the company’s business, a list of processes affected by these changes, the time limit for implementing the changes, the persons responsible for implementing the changes and, where relevant, the estimated costs involved.
The reporting system established at the Group level facilitates the respective business function holders in managing risks associated with redesigning the business processes that were introduced due to amended legal regulations.
In 2024, the compliance function will continue to provide guidance and oversight in the implementation of EU sustainability regulations, including the Corporate Sustainability Reporting Directive (CSRD) with the European Sustainability Reporting Standards (ESRS), the Sustainable Finance Disclosure Regulation (SFDR), the Non-Financial Reporting Directive (NFRD), the EU Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CS3D).
The Sava Insurance Group companies may outsource a function or activity that is critical or important for a company’s business so that it is performed better and/or more efficiently. This entails certain risks, such as dependence on external service providers and similar. Group companies are therefore very careful when outsourcing, taking into account all legal requirements and recommendations by local regulators. The outsourcing policy of the Sava Insurance Group sets out the minimum outsourcing standards for Group and non-Group contracts.
When handling complaints submitted by policyholders (and other beneficiaries of insurance contracts), individual companies that are insurance or pension companies follow the rules and procedures for resolving complaints that comply with local laws and the guidelines of the European Insurance and Occupational Pensions Authority (EIOPA), whereas the asset management company complies with the guidelines of the European Securities and Markets Authority (ESMA) in addition to the applicable laws and regulations in this area.
In accordance with the Sava Insurance Group Governance Rules, complaints addressed at Sava Re but relating to subsidiaries’ operations are recorded with Sava Re. After complaints have been examined, they are submitted to subsidiaries for resolution. The Group governance department of Sava Re maintains an internal online register of such complaints. Three complaints were lodged in 2023.
All subsidiaries also have internal rules, prescribed procedures and instructions for monitoring and handling complaints in accordance with applicable laws.
The values and principles of ethical conduct are defined in the Code of Ethics of the Sava Insurance Group (the code of ethics), which was also adopted by the Group’s subsidiaries. The general principles of the code of ethics are the core values of the Sava Insurance Group, which are binding on all our employees and include, among others, business compliance, protection of reputation, respect for the dignity and integrity of the individual, protection of trade secrets and other confidential information, honest and fair business practices, respect for market rules, professionalism and care for employees, equal information to all shareholders, transparency and integrity of information, avoidance of conflicts of interest, sustainability orientation and respect for human rights. Employees who become aware of violations of the code of ethics or other binding rules must report them to the compliance function holder. No violations of the code of ethics were observed in 2023.
The insurers also comply with the provisions of the adopted Insurance Code to ensure business development, a professional underwriting process and professional conduct. The (re)insurance companies operate in accordance with market principles, market competition based on loyalty and integrity, and insurance economics and business ethics, with the aim of providing customers with high-quality (re)insurance protection.
Sava Re has also signed the Slovenian Corporate Integrity Guidelines, which commits the Company to creating a work environment based on a culture of corporate integrity, zero tolerance for illegal and unethical conduct of its employees, and compliance with legislation, rules and values, as well as on the highest ethical standards.
Sava Re uses the revised Slovenian Corporate Governance Code for Listed Companies, which came into effect on 1 January 2022, as its reference code.
At the end of 2017, Sava Re also adopted a policy on the diversity of the management and supervisory boards of Sava Re, which governs, among other issues, the gender- and age-balance of all board members.
Sava Re has integrated respect for human rights in its operations in accordance with the applicable legislation and follows the proposed National Action Plan of the Republic of Slovenia on Business and Human Rights.
With the Policy on Ensuring the Inviolability of the Person and Protection of Personal Dignity in the Sava Insurance Group, we publicly declare that ensuring the inviolability and protection of the personal dignity of employees and other persons involved in work and business processes is one of our key priorities, and we strive to provide and maintain a safe workplace in which no one is exposed to violence (in particular sexual violence), harassment (in particular sexual harassment), discrimination and bullying. Every employee working for an employer has the right to equal treatment, dignity and personal integrity in the workplace. The Act on the Procedure for Dealing with Violations of the Rights to Inviolability of the Person and Personal Dignity in the Sava Insurance Group establishes a protocol for identifying and resolving such risks. In 2023, Sava Re recorded no such cases.
SavaRe follows the principles and guidelines of the rules on the management of conflicts of interest. The rules aim to mitigate the effects of conflicts of interest and manage conflicts of interest that may arise in the performance of the duties and tasks of individuals in the Company by establishing and implementing procedures and measures to be applied when a conflict of interest arises.100
Fraud prevention and detection systems are in place in all Group companies. In this regard, we continuously update the Group’s system and procedures, in particular by raising awareness, building knowledge and complying with standards of ethical conduct.
In accordance with the provisions of the Slovenian Corporate Integrity Guidelines, the Sava Insurance Group procurement policy and internal regulations of the Slovenia-based Group members, all contracts establishing legal relations must include an anti-corruption clause, general terms and conditions of business cooperation, and provisions regarding confidential data and protection of personal data.
SavaRe’s rules on the management of conflicts of interest set out the procedures and rules relating to receiving gifts, entertainment and hospitality. A detailed and transparent gift policy reduces the risk of unfounded allegations and the spread of distrust regarding employee integrity in the discharge of their duties.
The Sava Insurance Group did not record any corruption cases in 2023.102
At the Sava Insurance Group, we are aware of the wider social implications of the irresponsible handling of personal data, and we take particular account of trends in artificial intelligence or machine learning, smart devices and other modern digital technologies. In line with our commitment to high ethical standards, we focus our attention on this area in close connection with the provision of cyber security and go beyond the minimum requirements of the law. The companies strive to ensure open, transparent and straightforward communication with individuals whose data they process, including through user experience planning.
In 2021, Sava Re set up a support function for privacy and personal data protection and adopted the Privacy and Personal Data Protection Policy of the Sava Insurance Group. In particular, the policy strengthens the role and competencies of data protection officers (DPOs) and integrates privacy as an important concern into all relevant business and support processes.
The Sava Insurance Group companies have in place internal regulations that define the procedures and measures for the protection of personal data and the management of risks that the processing of personal data in business and support processes poses to the rights of individuals. The data are protected through technical and organisational measures designed to ensure their confidentiality, integrity and availability, and risk minimisation mechanisms are built into the processing operations.
Due to the adoption of new legislation in the Republic of Slovenia, the Slovenia-based companies also focused their personal data protection activities in 2023 on adapting to these changes.
In 2023, Sava Insurance Group subsidiaries continued to digitalise the management of personal data protection and strengthened cooperation between relevant stakeholders to sustainably manage the privacy of the Group’s employees, customers and business partners.
The Sava Insurance Group did not identify any major incidents in personal data protection in 2023.
The Sava Insurance Group pays very close attention to cybersecurity, for which we continuously strengthen internal system controls with IT and organisational solutions while training and educating our employees in the area of information security.
Information security is part of section 12 “Information technology”.
The Sustainable Development Policy of the Sava Insurance Group requires the Group companies to ensure respect for human rights in accordance with international conventions and applicable legislation, in particular:
In accordance with the adopted code of ethics and the rules on sponsorship and donations, SavaRe and Group subsidiaries do not finance political parties.
As members of the Sava Insurance Group, we forge strong ties with the community in which we operate and establish partnerships with community stakeholders. We support our communities through projects in which we provide financial and volunteer support to institutions, and we are actively involved in social activities and actions.
Our Group’s business network is extensive, with individual companies in constant contact with their customers and the environment, as they are best placed to identify the needs and potential of their local communities.
Certain members of our Group are the co-founders of the Network for Social Responsibility of Slovenia and members of the Partnership for National Strategy and Social Responsibility.107
Our efforts in the area of corporate social responsibility are also reflected in the awards received by Zavarovalnica Sava:
As the largest Group company, Zavarovalnica Sava carries out the highest number of activities related to socially responsible projects in the Group. These are mostly long-term projects, such as the Call of Loneliness (Klic osamljenosti) and You’ve Got This! (Maš to!) initiatives, which raise awareness about the importance of mental health. In 2023, they also developed the SavaFit incentive programme to encourage their policyholders to be physically active in their free time. To encourage more physical activity, they offer a pay-as-you-go payment scheme and additional benefits from selected partners. The programme was awarded the silver plaque “Best Innovation of the Podravje Region 2023”. It is also used as a platform for charity programmes involving policyholders.
The Sava Insurance Group takes care and responsibility for the people and the environment in which it operates, thus strengthening its visibility as a sustainable partner. Giving back to the community through sponsorship and donations is governed by rules. Sava Re’s rules are published on its website.
| Purpose (EUR) | 2023 | 2022 | Index |
|---|---|---|---|
| Humanitarian | 47,420 | 138,292 | 34.3 |
| Cultural | 137,731 | 172,302 | 79.9 |
| Category | 2022 | 2023 | Index |
|---|---|---|---|
| Sports | 2,922,675 | 3,257,279 | 89.7 |
| Education, training | 67,981 | 74,690 | 91.0 |
| Scientific | 500 | 383 | 130.5 |
| Social security | 7,600 | 7,731 | 98.3 |
| Disability | 2,693 | 4,357 | 61.8 |
| Health | 40,226 | 27,673 | 145.4 |
| Other* | 522,829 | 606,035 | 86.3 |
| Total | 3,749,655 | 4,288,742 | 87.4 |
At the Group level, we sponsor and support the ABA League. Each company allocates its sponsorships and donations according to its financial plan and the opportunities or needs it sees in the local market.
As the largest member of the Group, Zavarovalnica Sava follows the principle of promoting healthy lifestyles when selecting sponsorship and donation projects. The funding is given to associations and organizations that develop talent and have a positive impact on the environment and the public, including through support for preventive actions.
In 2023, a year marked by numerous natural catastrophes in most countries of the region, in particular widespread flooding and storms, many Group companies donated funds for reconstruction, adapted processes and ensured timely claims payments as a sign of solidarity.
Last year, Group companies also responded to the impact of the wars by providing financial support to facilitate the integration of young people from Ukraine.
In cooperation with the Ljubljana Stock Exchange, Sava Re supported the organization of the Days of the Slovenian Capital Market, an event aimed at increasing financial literacy among companies and retail investors.
Sava Re also refrained from purchasing business gifts in 2023. We donated the money that would otherwise have been spent on business gifts to organizations suggested and selected by employees. The 3rd Floor Heroes organization received the largest share of this funding.
Raising awareness among policyholders and the wider community about the importance of protecting property and general health, and the efforts to do so are an important part of the preventive actions of the Sava Insurance Group companies. Through prevention, we avoid and reduce claims while helping policyholders and the wider community to protect their health and property. To this end, the insurance companies create special funds for such projects in accordance with local legislation.
| Company | 2023 | 2022 | Index |
|---|---|---|---|
| Zavarovalnica Sava | 228,250 | 305,200 | 74.8 |
| Sava Osiguranje (MNE) | 134,371 | 381,043 | 35.3 |
| Sava Neživotno Osiguranje (SRB) | 65,580 | 153,576 | 42.7 |
| Total funds returned to the community | 428,201 | 839,819 | 50.9 |
The three insurers focus their prevention efforts mainly on preventing fire risks and improving road safety. To this end, a network of roadworthiness testing centres is established in Montenegro and North Macedonia.
Volunteerism in the form of employee commitment is an important value of the Sava Insurance Group and is united under the common name Heart for the World. To ensure the efficient and transparent implementation of activities, the Group has established a team of coordinators who manage the implementation of activities in their communities according to the interests and wishes of employees and liaise with various philanthropic and environmental organizations in their area. Volunteerism is about acting responsibly towards the environment, people and animals.
The Heart for the World Working Group also places great importance on raising awareness of pressing environmental and social issues among all employees by organising training sessions and sending out emails on important global days (e.g. Human Rights Day or World Water Day). In 2023, a team of coordinators in six countries organised 71 events involving around a third of all employees. This amounted to a total of 5,114 hours of volunteering.
The Sava Insurance Group is involved in initiatives that promote ethical conduct and sustainable business practices. We comply with the fundamental standard of professional business conduct as laid down by the Insurance Code of the Slovenian Insurance Association. We follow the recommendations of the Ljubljana Stock Exchange for listed companies on disclosure of information and have signed the Slovenian Corporate Integrity Guidelines.
109 GRI 203-02, 413-01.
110 GRI 3-3, 413-01.
111 GRI 2-28.
Sava Re’s code of reference is the Slovenian Corporate Governance Code for Listed Companies.
Sava Re is active in several professional associations: Slovenian Insurance Association, Slovenian Directors’ Association, British-Slovenian Chamber of Commerce, Chamber of Commerce of Dolenjska and Bela Krajina, Maritime Law Association of Slovenia, Sors (meeting of insurance and reinsurance companies), Slovenian Institute of Auditors, Slovenian Association of Actuaries, CFA Institute and European Institute of Compliance and Ethics (EISEP).
Since 2021, the Sava Insurance Group has been committed to the UN Global Compact and the UN Principles for Responsible Investment. As of 2022, Sava Re is also a member of the Slovenian Green Network. All subsidiaries are members of relevant associations and proactively contribute to the development of the industry and other social actions.
Climate change and related weather events have a profound impact on the global and local (re)insurance industry. Environmental problems bring new and unexpected risks to the insurance sector. The Group is aware that this requires urgent action, both in operational and strategic terms.
Sava Re has a waste separation system in place, which is constantly being improved. The Company also strives to reduce waste. We cannot yet measure the volume of waste by type, as waste is collected for the entire building, which accommodates a number of other legal entities. At the new office building in Maribor, where six Slovenian companies of the Group are based, municipal waste is collected and disposed of separately according to the categories defined by regulations as waste collected by public waste collection services. Such waste is collected by the public service provider in a manner defined by regulations.
All Group companies are digitalising processes and going paperless to reduce waste. At the Group level, we separate waste as required by local utility companies and in accordance with regulations. Group companies have widely organised the collection of electronic waste. Most companies have already introduced separate waste collection methods, most commonly used for paper, plastic packaging, biowaste and glass – where this is a systemic possibility.
Energy consumption and energy efficiency are environmental and economic concerns. The Sava Insurance Group remains committed to sustainability also in investing and investment maintenance. The Group is constantly looking for ways to reduce energy consumption, including by investing in new energy efficiency solutions. Investment decisions are also always assessed from an energy efficiency perspective.
The most important investment is the new office building of Zavarovalnica Sava in Maribor, where Sava Infond, Sava Pokojninska, TBS Team 24, ZS Svetovanje and Asistim have also moved their offices. The office building was designed and built in line with the Group’s strategic sustainability guidelines and has an energy rating “A”. It is equipped with a central control system that allows efficient management of modern devices, thus ensuring the efficient use of energy resources. The functional design of space and access, together with the modern IT infrastructure, allows employees to work in a well-organised environment, while the building’s accessible location and ample parking provide an excellent user experience for visitors.
An important addition to the new building is a 52.2 kW solar power plant, which contributed around 16% of the green energy in 2023. To ensure and promote sustainable mobility, the site includes charging stations for electric vehicles, a bike shed and a park in the immediate vicinity of the building, which is open to all visitors. An additional 66.6 kW solar power plant is planned for the building in early 2024. The installation of a solar power plant on canopies will increase the share of green energy to around 35% of total electricity consumption.
To reduce greenhouse gas emissions, we installed another 166.6 kW solar power plant in Slovenia to supply green energy to the insurance company’s sales and claims centre. Group companies are striving to improve the energy efficiency of their business premises while meeting demands to improve the customer experience and working conditions for employees. Investments include, for example, the installation of LED lighting, other more energy-efficient devices and heating and cooling systems for business premises, the implementation of green energy measures, the purchase of hybrid and electric vehicles, investment in charging infrastructure, investment in e-documentation systems, and the use of a central control system at strategic locations aimed at managing energy-intensive devices to continuously optimise energy use.
The vast majority of Zavarovalnica Sava employees have the option of car sharing for business travel, which is particularly useful in urban areas or in larger Slovenian cities. To achieve energy efficiency, we are implementing a number of measures at the Company level in line with the adopted action plan, such as homeworking, manual energy accounting, employee training on efficient energy use, and measures relating to the Company’s fleet and business travel. Average fuel consumption is taken into account when purchasing new vehicles for the Group. The type of vehicles purchased also depends on the availability of a network of charging stations in the countries in which we operate.
The calculation of the carbon footprint for 2023 includes all companies of the Sava Insurance Group on a consolidated basis. The carbon footprint calculation includes:
The carbon footprint of the Sava Insurance Group in 2023 is calculated using the location-based method and amounts to 3,984 tonnes of CO2 equivalent (tCO2e). This means 1.45 t CO2 equivalent per employee or 70.5 kg CO2 equivalent per square metre of office space. Compared to the reference year 2022, the Sava Insurance Group’s carbon footprint in 2023 was 6% lower, emissions per employee were 9% lower, and emissions per unit area of office space were 4% lower. The main contributors to this reduction were lower emissions from electricity consumption and heating, while emissions from business travel increased.
Scope 1 emissions in 2023 accounted for 1,070 tCO2e (27% of the carbon footprint), scope 2 emissions 2,595 tCO2e (65% of the carbon footprint) and scope 3 emissions 318 tCO2e (8% of the carbon footprint). The largest source of greenhouse gas emissions was electricity consumption (42%), followed by heating (30%) and business travel (27%).
| Number of employees | 2,744 | 2,704 | 101.5 |
|---|---|---|---|
| Floor area of business premises | 56,488 | 59,032 | 95.7 |
| 2023 (tCO2e) | 2022 benchmark (tCO2e) | Index 2023/2022 | |
|---|---|---|---|
| 1. Direct emissions from activities – scope 1 | 1,070.66 | 1,256.96 | 85.2 |
| 1.1 Combustion of fossil fuels for space heating | 258.01 | 359.77 | 71.71 |
| 1.2 Business travel using vehicles owned or controlled by the company | 798.75 | 821.58 | 97.2 |
| 1.3 Combustion of fossil fuels to power generators | 0.82 | 5.45 | 15.0 |
| 1.4 Fugitive refrigerant gases | 13.08 | 70.16 | 18.6 |
| 2. Indirect emissions – scope 2 | 2,595.10 | 2,842.35 | 91.3 |
| 2.1 Electricity consumption (for electrical and electronic equipment, lighting, space heating and cooling) | 1,665.11 | 1,794.69 | 92.8 |
| 2.2 District heating consumption for space heating | 929.99 | 1,047.66 | 88.88 |
| 318.64 | 148.01 | 215.3 | ||
|---|---|---|---|---|
| 3.1 | Paper consumption | 49.97 | ||
| 3.2 | Water consumption | 2.48 | ||
| 3.3 | Waste water management | 2.83 | ||
| 3.4 | Business travel using vehicles not owned by the company | 263.36 | ||
| 148.01 | 177.9 | |||
| 3.4.1 | Motor vehicles | 88.32 | 76.08 | 116.09 |
| 3.4.2 | Aircraft | 173.47 | 70.82 | 244.9 |
| 3.4.3 | Public passenger transport – bus and rail | 0.74 | 0.31 | 238.7 |
| 3.4.4 | Taxi, shuttle | 0.83 | 0.80 | 103.7 |
| TOTAL | 3,984.4 | 4,247.32 | 92.3 |
The carbon footprint data for 2022 were revised and may differ from the publicly available data in the 2022 annual report. The data for 2023 were verified and cover all locations where Group companies conduct their business operations.
| Select Sava Insurance Group sustainability performance indicators | 2023 | 2022 | Index 2023/2022 | ||
|---|---|---|---|---|---|
| Environmental aspect | CO2 emissions per employee (in tonnes) | 1.45 | 1.60 | 90.6 | |
| Number of claims reported online | 67,981 | 45,288 |
| 2023 | 2022 | Index 2023/2022 |
|---|---|---|
| 16.9% | 14.9% | 113.4 |
| Percentage of employees involved in annual performance appraisal interviews | 2023 | 2022 | Index 2023/2022 |
|---|---|---|---|
| 47.9% | 49.5% | 96.7 | |
| Women as a percentage of all employees as at 31 December | 59.9% | 57.9% | 103.4 |
| Employee turnover rate | 17.1% | 16.9% | 101.3 |
| Number of injuries in the workplace | 8 | 9 | 88.8 |
| Average hours of training per employee | 22.5 | 24.6 | 91.5 |
| Heart for the World – corporate volunteering (hours) | 5,114 | 5,439 | 94.0 |
| Percentage of women in management positions | 2023 | 2022 | Index 2023/2022 |
|---|---|---|---|
| 27.7% | 23.9% | 115.9 | |
| Percentage of women on Group companies’ supervisory boards | 19.7% | 21.8% | 90.3 |
| Economic value generated (EUR million) | 867.6 | 729.9 | 118.9 |
| Economic value distributed (EUR million) | 827.4 | 705.2 | 117.3 |
| Economic value retained (EUR million) | 40.1 | 24.6 | 163.1 |
The carbon footprint data for 2022 were revised and may differ from the publicly available data in the 2022 annual report. The data for 2023 were verified and cover all locations where Group companies conduct their business operations.
| 2023 | 2022 | Index 2023/2022 | |||
|---|---|---|---|---|---|
| CO2 emissions per employee (in tonnes) | 1.99 | 1.66 | 119.9 | ||
| Annual electricity consumption per employee (kWh/employee) | 1,297 | 1,485 | 87.34 |
| Percentage of employees involved in annual performance appraisal interviews | 2023 | 2022 | Index 2023/2022 |
|---|---|---|---|
| 86.3% | 100% | 86.3 | |
| Women as a percentage of all employees as at 31 December | 63.1% | 63.3% | 99.7 |
| Employee turnover rate | 6.1% | 10.5% | 58.0 |
| Number of injuries in the workplace | 0 | 0 | 100 |
| Average hours of training per employee | 26.8 | 23.5 | 114.0 |
| Percentage of women in management positions | 25% | 33.3% | 75 |
|---|---|---|---|
| Percentage of women on supervisory boards | 17% | 17% | 100 |
| Percentage of independent members on Sava Re’s supervisory board | 100% | 100% | 100 |
The carbon footprint data for 2022 were revised and may differ from the publicly available data in the 2022 annual report. The data for 2023 were verified.
159
Financial statements with notes
160
The management board of SavaRe d.d. hereby approves the financial statements of the Sava Insurance Group and Sava Re for the year ended 31 December 2023, and the accompanying appendices to the financial statements, accounting policies and notes to the financial statements. The management board confirms that the financial statements, including the notes, have been prepared on a going concern basis regarding the operations of the Company and the Group and that they comply with Slovenian law and the International Financial Reporting Standards as adopted by the EU. The financial statements have been prepared using relevant judgements, estimates and assumptions, including actuarial judgements, which apply the methods most suited to the Company and the Group under given circumstances, based on which we can give the below assurances.
The management board members ensure that to the best of their knowledge:
Furthermore, the management board is responsible for keeping appropriate records that at all times present, in understandable detail, the financial position of the Company and the Group, for adopting appropriate measures to protect assets, and for preventing and detecting fraud and other irregularities.
The tax authorities may, at any time within five years of the end of the year in which the tax was assessed, review the operations of the Company, which could result in additional tax obligations, default interest or penalties related to corporate income tax or other taxes or levies. The Company’s management board is not aware of any circumstances that may give rise to any such significant liability.
Marko Jazbec, Chairman of the Management Board
Polona Pirš Zupančič, Member of the Management Board
Peter Skvarča, Member of the Management Board
David Benedek, Member of the Management Board
Ljubljana, 15 March 2024
169
170
The financial statements of the Sava Insurance Group and Sava Re d.d for 2023
| EUR | Note | Sava Insurance Group | Sava Re | 31 December 2023 | 31 December 2022 (restated) | 1 January 2022 (restated) |
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Intangible assets and goodwill | 16.8.1 | 65,148,831 | 4,674,935 | 31 December 2023 | 31 December 2022 (restated) | 1 January 2022 (restated) |
| Property, plant and equipment | 16.8.2 | 59,686,798 | 2,675,158 | 31 December 2023 | 31 December 2022 (restated) | 1 January 2022 (restated) |
| Investment property | 16.8.5 | 24,890,278 | 7,582,168 | 31 December 2023 | 31 December 2022 (restated) | 1 January 2022 (restated) |
| Right-of-use assets | 16.8.3 | 8,573,398 | 277,158 | 31 December 2023 | 31 December 2022 (restated) | 1 January 2022 (restated) |
| Investments in subsidiaries | 16.8.6 | 0 | 305,666,793 | 31 December 2023 | 31 December 2022 (restated) | 1 January 2022 (restated) |
| Investments in associates and joint ventures |
| Investments in associates accounted for using equity method | 23,834,620 | 21,856,109 | 20,479,729 | 19,575,000 | 19,575,000 | 19,575,000 |
|---|---|---|---|---|---|---|
| Investments in associates measured at cost | 0 | 0 | 0 | 19,575,000 | 19,575,000 | 19,575,000 |
|---|---|---|---|---|---|---|
| Deferred tax assets | 6,584,400 | 17,065 | 397,297 | 5,087,420 | 3,032,250 | 2,710,122 |
|---|---|---|---|---|---|---|
| Financial investments measured at | 2,012,532,633 | 1,776,132,075 | 1,987,024,393 | 354,384,196 | 324,430,975 | 319,625,036 |
|---|---|---|---|---|---|---|
| – Fair value through other comprehensive income | 1,276,147,045 | 1,155,401,907 | 1,322,371,668 | 311,285,620 | 280,840,335 | 271,786,710 |
| – Amortised cost | 76,303,166 | 64,428,280 | 62,376,074 | 5,811,776 | 3,871,964 | 5,323,531 |
| – Fair value through profit or loss | 660,082,422 | 556,301,888 | 602,276,651 | 37,286,800 | 39,718,676 | 42,514,795 |
| Investment contract assets | 180,628,137 | 166,374,119 | 168,020,989 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|
| Insurance contract assets | 9,607,288 | 7,138,340 | 14,379,062 | 5,095,344 | 3,071,631 | 3,063,438 |
|---|---|---|---|---|---|---|
| Reinsurance contract assets | 107,481,560 | 68,133,642 | 64,246,006 | 95,762,621 | 61,224,914 | 56,068,497 |
|---|---|---|---|---|---|---|
| Trade and other receivables | 16.8.17 | 444,616 | 3,412,855 | 330,518 | 0 | 49,594 | 0 |
|---|---|---|---|---|---|---|---|
| Non-current assets held for sale | 16.8.20 | 259,649 | 991,803 | 770,544 | 0 | 0 | 0 |
| Cash and cash equivalents | 16.8.19 | 50,559,964 | 93,223,631 | 88,643,990 | 12,260,049 | 23,926,029 | 28,806,817 |
| Other assets | 16.8.18 | 4,042,606 | 4,025,283 | 4,038,117 | 715,114 | 699,783 | 746,045 |
| 2,568,546,136 | 2,312,140,248 | 2,497,036,498 | 813,954,322 | 754,248,344 | 749,174,988 |
|---|---|---|---|---|---|
| Subordinated liabilities | 16.8.29 | 74,987,535 | 74,924,356 | 74,863,524 | 74,987,535 | 74,924,356 | 74,863,524 |
|---|---|---|---|---|---|---|---|
| Deferred tax liabilities | 16.8.4 | 3,436,591 | 2,811,300 | 17,864,866 | 0 | 0 | 0 |
| Insurance contract liabilities | 16.8.9 | 1,651,022,247 | 1,484,315,158 | 1,621,102,825 | 295,752,723 | 272,414,051 | 291,446,906 |
| Reinsurance contract liabilities | 16.8.9 | 1,642,043 | 1,051,614 | 1,376,802 | 446,848 | 320,044 | 766,545 |
| Investment contract liabilities |
| 180,437,695 | 166,197,363 | 167,844,906 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 8,074,255 | 7,973,454 | 8,918,059 | 419,660 | 392,640 | 421,865 |
|---|---|---|---|---|---|
| 8,844,737 | 7,657,186 | 7,640,477 | 280,366 | 320,490 | 203,730 |
|---|---|---|---|---|---|
| 737,085 | 548,576 | 561,728 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 9,930,830 | 1,554,992 | 2,996,533 | 6,319,991 | 45,414 | 394,752 |
|---|---|---|---|---|---|
| 43,769,505 | 33,642,572 | 40,329,687 | 4,850,021 | 4,155,693 | 6,368,946 |
|---|---|---|---|---|---|
| 1,982,882,523 | 1,780,676,571 | 1,943,499,407 | 383,057,144 | 352,572,688 | 374,466,268 |
|---|---|---|---|---|---|
| 71,856,376 | 71,856,376 | 71,856,376 | 71,856,376 | 71,856,376 | 71,856,376 |
|---|---|---|---|---|---|
| 42,702,320 | 42,702,320 | 42,702,320 | 54,239,757 | 54,239,757 | 54,239,757 |
|---|---|---|---|---|---|
| 281,693,666 | 256,945,591 | 229,008,079 | 281,959,459 | 257,222,058 | 229,238,622 |
|---|---|---|---|---|---|
| -24,938,709 | -24,938,709 | -24,938,709 | -24,938,709 | -24,938,709 | -24,938,709 |
|---|---|---|---|---|---|
| -28,195,652 | -45,138,332 | 1,511,123 | -9,766,315 | -14,296,729 | -3,159,258 |
|---|---|---|---|---|---|
| 205,041,879 | 214,047,218 | 236,218,747 | 32,809,209 | 24,225,388 | 47,471,932 |
|---|---|---|---|---|---|
| 39,702,056 | 18,712,745 | 0 | 24,737,401 | 33,367,515 | 0 |
|---|---|---|---|---|---|
| -3,049,094 | -3,256,083 | -3,244,024 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 584,812,842 | 530,931,126 | 553,113,912 | 430,897,178 | 401,675,656 | 374,708,720 |
|---|---|---|---|---|---|
| 850,771 | 532,551 | 423,179 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 585,663,613 | 531,463,677 | 553,537,091 | 430,897,178 | 401,675,656 | 374,708,720 |
|---|---|---|---|---|---|
| 2,568,546,136 | 2,312,140,248 | 2,497,036,498 | 813,954,322 | 754,248,344 | 749,174,988 |
|---|---|---|---|---|---|
The notes to the financial statements in sections 16.4 to 16.10 form an integral part of these financial statements and should be read in conjunction with them.
| Insurance service expenses | 697,562,811 | 608,987,793 | 167,804,126 | 150,760,655 |
|---|---|---|---|---|
| Insurance service result from insurance contracts issued | 40,437,293 | 71,477,243 | -6,686,792 | 18,237,405 |
| Revenue from reinsurance contracts held | 86,112,246 | 43,335,084 | 73,904,850 | 39,440,417 |
| Expenses from reinsurance contracts held | -43,071,777 | -38,738,910 | -30,235,703 | -29,572,834 |
| Net result from reinsurance contracts held | 43,040,469 | 4,596,174 | 43,669,147 | 9,867,583 |
| Insurance service result | 83,477,762 | 76,073,417 | 36,982,355 | 28,104,988 |
| Interest income | 21,119,902 | 15,874,573 | 4,735,050 | 2,688,043 |
| Dividend income | 1,099,061 | 1,317,305 | 217,967 | 458,074 |
| Income or expenses from financial investments measured at FVTPL | 58,342,472 | -72,848,689 | 1,211,782 | -3,103,084 |
| Gains and losses arising from the derecognition of financial investments measured at FVOCI | -821,329 | -429,390 | -120,448 | 197,687 |
| Net impairment losses and reversals of impairment losses on financial investments | 343,794 | 350,981 | 54,426 | 21,823 |
| Net other investment income or expenses | -1,659,159 | 2,552,339 | -3,754,391 | 2,977,155 |
| Net investment result | 78,424,741 | -53,182,881 | 2,344,386 | 3,239,698 |
| Finance result from insurance contracts | -62,000,579 | 52,044,359 | 736,264 |
-4,749,017
| -612,578 | 370,665 | -774,623 | 266,249 |
|---|---|---|---|
| -62,613,157 | 52,415,024 | -38,359 | -4,482,768 |
|---|---|---|---|
| 15,811,584 | -767,857 | 2,306,027 | -1,243,070 |
|---|---|---|---|
| 19,589,410 | 17,981,800 | 0 | 0 |
|---|---|---|---|
| -29,432,276 | -26,979,168 | -13,805,508 | -11,803,863 |
|---|---|---|---|
| 231,724 | 79,737 | 0 | 5,353 |
|---|---|---|---|
| -3,114,997 | -3,021,150 | -2,882,998 | -2,875,317 |
|---|---|---|---|
| 2,169,860 | 1,285,731 | 0 | 0 |
|---|---|---|---|
| 116,348 | 994,004 | 30,755,010 | 51,728,827 |
|---|---|---|---|
| 353,684 | 0 | 0 | 0 |
|---|---|---|---|
| -9,589,746 | -7,144,469 | 234,323 | 14,978 |
|---|---|---|---|
| 79,613,353 | 58,502,045 | 53,589,209 | 63,931,896 |
|---|---|---|---|
| -14,956,182 | -11,578,604 | -4,114,407 | -2,580,945 |
|---|---|---|---|
| 64,657,171 | 46,923,441 | 49,474,802 | 61,350,951 |
|---|---|---|---|
| EUR | Note | Sava Insurance Group | Sava Re | 1–12/2023 | 1–12/2022 | 1–12/2023 | 1–12/2022 |
|---|---|---|---|---|---|---|---|
| PROFIT OR LOSS FOR THE PERIOD, NET OF TAX | 64,657,171 | 46,923,441 | 49,474,802 | 61,350,951 | |||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | 17,146,991 | -45,681,294 | 4,530,414 | -11,137,470 | |||
| a) Items that will not be reclassified subsequently to profit or loss | 818,871 | 1,252,055 | 26,439 | 55,903 | |||
| Net gains or losses on investments in equity instruments at FVOCI | 1,042,213 | -1,429,715 | 0 | 0 | |||
| Other items that will not be reclassified subsequently to profit or loss | -196,565 | 2,383,572 | 27,063 | 55,903 | |||
| Tax on items that will not be reclassified subsequently to profit or loss | -26,777 | 298,198 | -624 | 0 | |||
| b) Items that may be reclassified subsequently to profit or loss | 16,328,120 | -46,933,349 | 4,503,975 | -11,193,373 | |||
| Finance income or expenses from insurance contracts | -33,063,968 | 108,200,503 | -6,255,975 | 16,477,039 | |||
| Finance income or expenses from reinsurance contracts | 1,378,743 | -5,079,988 | 1,304,240 | -4,949,438 | |||
| Fair value gain or loss on investments in debt instruments measured at FVTOCI | 50,742,502 | -160,617,807 | 9,952,809 | -25,259,425 | |||
| Tax on items that may be reclassified subsequently to profit or loss | -2,935,470 | 10,576,386 | -497,099 |
Net profit or loss attributable to owners of the controlling company: 64,464,804
Earnings per share (basic and diluted): 4.16
The notes to the financial statements in sections 16.4 to 16.10 form an integral part of these financial statements and should be read in conjunction with them.
| 206,313 | -12,443 | 0 | 0 |
|---|---|---|---|
The notes to the financial statements in sections 16.4 to 16.10 form an integral part of these financial statements and should be read in conjunction with them.
| 7,726,211 | 120,318,151 | 16,384,524 | 12,491,604 | ||
|---|---|---|---|---|---|
| Net profit or loss for the period | 16.8.26 | 64,657,171 | 46,923,441 | ||
| 49,474,802 | 61,350,951 | ||||
| Adjustments for: | -56,930,960 | 73,394,710 | -33,090,278 | -48,859,347 | |
| – Depreciation and amortisation expense | 9,990,892 | 7,008,930 | 738,774 | 620,939 | |
| – Depreciation of right-of-use assets | 16.8.3 | 1,716,035 | 2,600,227 | 82,608 | 78,843 |
| – Finance expenses | 53,158,033 | 160,356,858 | 5,903,268 | 10,366,968 |
| -130,692,979 | -102,142,261 | -40,894,811 | -59,410,161 |
|---|---|---|---|
| -855,957 | -842,517 | -28,323 | -75,958 |
|---|---|---|---|
| -2,169,860 | -1,285,731 | 0 | 0 |
|---|---|---|---|
| -116,348 | -994,004 | -112,595 | -994,004 |
|---|---|---|---|
| 46,651 | -545,041 | 0 | 0 |
|---|---|---|---|
| -122,242 | -152,014 | 106,404 | 22,068 |
|---|---|---|---|
| -2,841,367 | -2,188,341 | -3,000,010 | -2,048,987 |
|---|---|---|---|
| 14,956,182 | 11,578,604 | 4,114,407 | 2,580,945 |
|---|---|---|---|
| 90,618,113 | -57,664,482 | -11,218,791 | -14,548,609 |
|---|---|---|---|
| 100,504,161 | -29,988,304 | -10,313,260 | -14,715,858 |
|---|---|---|---|
| -17,184,956 | 3,906,065 | 1,586,660 | 2,173,788 |
|---|---|---|---|
| 20,055,151 | -14,441,431 | -2,147,977 | -1,242,983 |
|---|---|---|---|
| -12,756,243 | -17,140,812 | -344,214 | -763,556 |
|---|---|---|---|
| 98,344,324 | 62,653,669 | 5,165,733 | -2,057,005 |
|---|---|---|---|
| 373,072,106 | 370,492,199 | 134,050,429 | 130,113,034 |
|---|---|---|---|
| 20,214,734 | 20,853,312 | 4,030,654 | 3,679,026 |
|---|---|---|---|
| 399,271 | 1,255,293 | 30,860,382 | 52,381,099 |
|---|---|---|---|
| 0 | 21,137 | 0 | 0 |
|---|---|---|---|
| 4,150,446 | 5,382,570 | 42,155 | 107,892 |
|---|---|---|---|
| 0 | 482,648 | 0 | 0 |
|---|---|---|---|
| 885,018 | 1,055,039 | 0 | 0 |
|---|---|---|---|
| 347,422,637 | 341,442,200 | 99,117,238 | 73,945,017 |
|---|---|---|---|
| 16.8.6 | 112,596 | 1,000,000 | 112,595 | 1,000,000 |
|---|---|---|---|---|
| 347,310,041 | 340,442,200 | 99,004,643 | 72,945,017 |
|---|---|---|---|
| -486,542,321 | -402,286,776 | -123,198,731 | -106,765,838 |
|---|---|---|---|
| -4,683,220 | -5,515,155 | -967,769 | -1,120,721 |
|---|---|---|---|
| -4,885,865 | -14,852,976 | -363,031 | -318,237 |
|---|---|---|---|
| -2,612,918 | -9,186,766 | -10,045 | 0 |
|---|---|---|---|
| -474,360,318 | -372,731,879 | -121,857,886 | -105,326,880 |
|---|---|---|---|
| -1,993,500 | 0 | -1,993,500 | 0 |
|---|---|---|---|
| -472,366,818 | -372,731,879 | -119,864,386 | -105,326,880 |
|---|---|---|---|
| -113,470,215 | -31,794,577 | 10,851,698 | 23,347,196 |
|---|---|---|---|
| 2,633,769 | 2,210,319 | 0 | 0 | |
|---|---|---|---|---|
| Proceeds from paid-in capital | 263,999 | 10,478 | 0 | 0 |
| Proceeds from borrowing | 2,369,770 | 2,199,841 | 0 | 0 |
| -30,171,545 | -28,489,770 | -27,683,411 | -26,170,979 | |||
|---|---|---|---|---|---|---|
| Interest paid | -3,051,818 | -2,919,213 | -2,807,331 | -2,847,665 | ||
| Repayments of loans and borrowings | -2,188,659 | -2,213,557 | 0 | 0 | ||
| Repayments of lease liabilities | 0 | 0 | -79,765 | -76,770 | ||
| Dividends and other profit participations paid | 16.8.27 | -24,931,068 | -23,357,000 | -24,796,315 | -23,246,544 |
| -27,537,776 | -26,279,451 | -27,683,411 | -26,170,979 |
|---|---|---|---|
| 50,559,964 | 93,223,631 | 12,260,049 | 23,926,029 |
|---|---|---|---|
x) Increase or decrease in cash and cash equivalents for the period (Ac + Bc + Cc)
-42,663,667
4,579,641
-11,665,980
-4,880,788
y) Opening balance of cash and cash equivalents
16.8.19
93,223,631
88,643,990
23,926,029
28,806,817
The notes to the financial statements in sections 16.4 to 16.10 form an integral part of these financial statements and should be read in conjunction with them.
| I. Share capital | II. Capital reserves | III. Profit reserves | IV. Accumulated other comprehensive income | V. Retained earnings | VI. Net profit or loss for the period | VII. Foreign currency translation reserve | VIII. Equity attributable to owners of the controlling company | IX. Non-controlling interests in equity | Total |
|---|---|---|---|---|---|---|---|---|---|
| Legal reserves and reserves provided for in the articles of association | Capital redemption reserve | Treasury shares | Other profit reserves | (12 + 13) | |||||
| 1 | 2 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| 12 | 13 | 14 | Closing balance in previous financial year | 71,856,376 | 42,702,320 | 12,150,797 | 24,938,709 | -24,938,709 | 219,856,085 |
| -45,138,332 | 214,047,218 | 18,712,745 | -3,256,083 | 530,931,126 | 532,551 | 531,463,677 | Equity (start of period) | 71,856,376 | 42,702,320 |
| 12,150,797 | 24,938,709 | -24,938,709 | 219,856,085 | -45,138,332 | 214,047,218 | 18,712,745 | -3,256,083 | 530,931,126 | 532,551 |
| 531,463,677 | Comprehensive income for the period, net of tax | 0 | 0 | 0 | 0 | 0 | 16,942,680 | 0 | 64,464,804 |
| Net profit or loss for the period | 206,989 | 81,614,473 | 189,689 | 81,804,162 |
|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 |
| 0 | 64,464,804 | 0 | 64,464,804 | 192,367 |
| 64,657,171 | Other comprehensive income | 0 | 0 | 0 |
| 0 | 206,989 | 17,149,669 | -2,678 | 17,146,991 |
| Dividends paid | 0 | 0 | 0 | 0 |
| 0 | -24,795,600 | 0 | 0 | -24,795,600 |
| -135,468 | -24,931,068 | Allocation of net profit to profit reserve | 0 | 0 |
| 25,347 | 0 | 0 | 24,722,728 | 0 |
| 14,673 | -24,762,748 | 0 | 0 | 0 |
| Transfer of profit | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 18,712,745 | -18,712,745 |
| 0 | 0 | Acquisition and disposal of subsidiary | 0 | 0 |
| 0 | 0 | 0 | 263,999 | 263,999 |
| 0 | 0 | 0 | 0 | 0 | 0 | -2,937,157 | 0 | 0 | -2,937,157 | 0 | -2,937,157 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 71,856,376 | 42,702,320 | 12,176,144 | 24,938,709 | -24,938,709 | 244,578,813 | -28,195,652 | 205,041,879 | 39,702,056 | -3,049,094 | 584,812,842 | 850,771 | 585,663,613 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| I. Share capital | II. Capital reserves | III. Profit reserves | IV. Accumulated other comprehensive income | V. Retained earnings | VI. Net profit or loss for the period | VII. Foreign currency translation reserve | VIII. Equity attributable to owners of the controlling company | IX. Non-controlling interests in equity | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Legal reserves and reserves provided for in the articles of association | Capital redemption reserve | Treasury shares | Other profit reserves | (12 + 13) | 1 | 2. | 4 | 5. | 6. | 7. | 8. | 9. | 10. | 11. | 12. | 13. | 14. |
| Closing balance in previous financial year | 71,856,376 | 54,239,757 | 14,986,525 | 24,938,709 | -24,938,709 | 217,296,824 | -14,296,729 | 24,225,388 | 33,367,515 | 0 | 401,675,656 | 0 | 401,675,656 | ||||
| Equity (start of period) | 71,856,376 | 54,239,757 | 14,986,525 | 24,938,709 | -24,938,709 | 217,296,824 | -14,296,729 | 24,225,388 | 33,367,515 | 0 | 401,675,656 | 0 | 401,675,656 |
| Net profit or loss for the period | 4,530,414 | 49,474,802 | 54,005,216 | 54,005,216 |
|---|---|---|---|---|
| Other comprehensive income | 4,530,414 | 0 | 0 | 4,530,414 |
| Dividends paid | -24,796,314 | 0 | 0 | -24,796,314 |
| Allocation of net profit to profit reserve | 24,737,401 | 0 | -24,737,401 | 0 |
| Transfer of profit | 0 | 33,367,515 | -33,367,515 | 0 |
| Other | 0 | 0 | 0 | 0 |
| I. Share capital | II. Capital reserves | III. Profit reserves | IV. Accumulated other comprehensive income | V. Retained earnings | VI. Net profit or loss for the period | VII. Translation differences | VIII. Equity attributable to owners of the controlling company | IX. Non-controlling interests in equity | Total |
|---|---|---|---|---|---|---|---|---|---|
| 71,856,376 | 54,239,757 | 14,986,525 | 24,938,709 | -24,938,709 | 242,034,225 | -9,766,315 | 32,809,209 | 24,737,401 | 0 |
| Total | 430,897,178 | ||||||||
| 0 | |||||||||
| 430,897,178 |
| -9,549,903 | 11,162,972 | 0 | 0 | 1,613,069 | 0 | 1,613,069 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | -11,486,736 | 61,173,806 | 0 | 12,330 | 49,699,400 | 55,883 | 49,755,283 | ||||
| Equity (start of period) | 71,856,376 | 42,702,320 | 12,150,797 | 24,938,709 | -24,938,709 | 191,918,573 | ||||||
| 1,511,120 | 186,594,905 | 49,623,843 | -3,244,024 | 553,113,910 | 423,181 | 553,537,091 | ||||||
| Comprehensive income for the period, net of tax | 0 | 0 | 0 | 0 | 0 | -46,649,452 | 988,811 | 46,696,181 | -12,059 | 1,023,481 | 218,666 | 1,242,147 |
| Net profit or loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 46,696,181 | 0 | 46,696,181 | 227,260 | 46,923,441 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | -46,649,452 | 988,811 | 0 | -12,059 | -45,672,700 | -8,594 | -45,681,294 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 |
| I. Share capital | 71,856,376 |
|---|---|
| II. Capital reserves | 42,702,320 |
| III. Profit reserves | 12,150,797 |
| IV. Accumulated other comprehensive income | 24,938,709 |
| V. Retained earnings | -24,938,709 |
| VI. Net profit or loss for the period | 219,856,085 |
| VII. Foreign currency translation reserve | -45,138,332 |
| VIII. Equity attributable to owners of the controlling company | 214,047,218 |
| IX. Non-controlling interests in equity | 18,712,745 |
| Total | 530,931,126 |
| 0 | -23,246,544 | 0 | 0 | -23,246,544 | -110,460 | -23,357,004 |
|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 49,623,843 | -49,623,843 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40,279 | 0 | 0 | 40,279 | 1,164 | 41,443 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Closing balance in previous financial year | 71,856,376 | 54,239,757 | 14,986,525 | 24,938,709 | -24,938,709 | 189,313,388 | 3,716,228 | 10,633,662 | 26,420,064 | 0 | 371,166,000 | 0 | 371,166,000 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Impact of transition to IFRS 9 | 0 | 0 | 0 | 0 | 0 | 0 | -3,270,615 | 4,387,132 | 0 | 0 | 1,116,517 | 0 | 1,116,517 |
| Impact of transition to IFRS 17 | 0 | 0 | 0 | 0 | 0 | 0 | -3,604,872 | 6,031,074 | 0 | 0 | 2,426,202 | 0 | 2,426,202 |
| Equity (start of period) | 71,856,376 | 54,239,757 | 14,986,525 | 24,938,709 | -24,938,709 | 189,313,388 | -3,159,259 | 21,051,868 | 26,420,064 | 0 | 374,708,719 | 0 | 374,708,719 |
| Comprehensive income for the period, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | -11,137,470 | 0 | 61,350,951 | 0 | 50,213,481 | 0 | 50,213,481 |
| Net profit or loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 61,350,951 | 0 | 61,350,951 |
| 0 | 61,350,951 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | ||||||||||||
| 0 | -11,137,470 | ||||||||||||
| 0 | 0 | ||||||||||||
| 0 | -11,137,470 | ||||||||||||
| 0 | -11,137,470 | ||||||||||||
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 | -23,246,544 | 0 | 0 | -23,246,544 | 0 | -23,246,544 | |
| Allocation of net profit to profit reserve | 0 | 0 | 0 | 0 | 0 | 27,983,436 | 0 | 0 | -27,983,436 | 0 | 0 | 0 | 0 |
| Transfer of profit | 0 | 0 | 0 | 0 | 0 | 0 | 26,420,064 | -26,420,064 | 0 | 0 | 0 | 0 | |
| Equity (end of period) | 71,856,376 | 54,239,757 | 14,986,525 | 24,938,709 | -24,938,709 | 217,296,824 | -14,296,729 | 24,225,388 | 33,367,515 | 0 | 401,675,656 | 0 | 401,675,656 |
The notes to the financial statements in sections 16.4 to 16.10 form an integral part of these financial statements and should be read in conjunction with them.
Reporting company
SavaRe d.d. (hereinafter also the Company) is the parent of the Sava Insurance Group (hereinafter also the Group). The Company was established under the Foundations of the Life and Non-Life Insurance System Act, and was entered in the company register kept by the Ljubljana Basic Court, Ljubljana Unit (now Ljubljana District Court), on 10 December 1990. Its legal predecessor, Pozavarovalna Skupnost Sava, was established in 1977.
Business address of the controlling company
Dunajska cesta 56, Ljubljana, Slovenia
Name of reporting entity
Pozavarovalnica Sava, d.d. (Sava Reinsurance Company d.d., Sava Re d.d.)
Legal form of entity
delniška družba (public limited company)
Domicile of entity
Slovenia
Slovenia
Slovenia
reinsurance
Pozavarovalnica Sava, d.d. (Sava Reinsurance Company d.d., Sava Re d.d.)
Pozavarovalnica Sava, d.d. (Sava Reinsurance Company d.d., Sava Re d.d.)
no changes in 2023
financial statements of the Sava Insurance Group and Sava Re d.d for 2023
31 December 2023
1 January 2023 – 31 December 2023
euro
rounded to the nearest whole number
The Group transacts reinsurance business (13.5% of the business volume), non-life insurance business (62.9% of the business volume), life insurance business (20.4% of the business volume), pension business and asset management (2.5% of the business volume) and other non-insurance business (0.7% of the business volume)118.
The number of staff employed by the Group on the last day of 2023 was 2,744.8 (31 December 2022): 2,704.3 employees). The statistics on employees in regular employment by various criteria are given in section 9 “Human resources management”.
As at 31 December 2023, the Company employed 144.1 people (31 December 2022: 133.3 employees). The statistics on employees in regular employment by various criteria are given in section 9 “Human resources management”.
118 Data for 2023.
The bodies of the Company are the general meeting, the supervisory board and the management board.
The Company’s largest shareholders are Slovenian Sovereign Holding (Slovenski državni holding) and the Republic of Slovenia (which is the founder and sole shareholder of Slovenian Sovereign Holding), which together hold 31.6% of the shares. InterCapital Securities Ltd. holds 19.1% of the shares in a fiduciary account. The largest ultimate beneficial owners of the shares registered through the mentioned fiduciary account are Croatia Osiguranje d.d. (14.2%) and Adris Grupa d.d. (4.9%).
The table “Ten largest shareholders and the list of holders of qualified holdings pursuant to the Takeovers Act as at 31 December 2023” (section 3 “Shareholders and share trading”) is followed by an additional note on the share of voting rights in Sava Re (section 3 “Shareholders and share trading”).
It is the responsibility of the Company’s management board to prepare the annual report and authorise it for issue to the supervisory board. The audited annual report is then approved by the Company’s supervisory board. If the annual report is not approved by the supervisory board, or if the management and supervisory boards leave the decision about its approval (authorisation for issue) to the general meeting of shareholders, the general meeting also decides on the approval (authorisation for issue) of the annual report.
The general meeting has the power to amend the annual report after it has been approved by the Company’s management board; however, it must be re-audited by the external auditor within two weeks after its approval by the general meeting.
The following tables show the fair values of the net assets and liabilities of the acquiree ASP d.o.o. acquired in the business combination.
| Company acquired in 2023 | EUR |
|---|---|
| ASP | 30 September 2023 |
| Intangible assets and goodwill | 1,354,199 |
| Property, plant and equipment | 12,254 |
| Current tax assets | 9,064 |
| Trade and other receivables | 132,935 |
| Cash and cash equivalents | 53,335 |
| A. Total assets | 1,561,788 |
| Deferred tax liabilities | 244,200 |
| Other liabilities | 67,588 |
| B. Total liabilities | 311,788 |
| Fair value of net assets acquired (A - B) | 1,250,000 |
| Non-controlling interests in equity | 0 |
| Goodwill | 0 |
| Fair value of investment as at 30 September 2023 | 1,250,000 |
| EUR | ASP |
| Acquisition of stake | 1,250,000 |
| Net cash and cash equivalents acquired in the business combination | 53,335 |
| Net cash relating to the business combination | 1,196,665 |
119 GRI 2-6, 2-2.
The described transaction represents a business combination, included in the financial statements using the acquisition method. The first-time consolidation of the company ASP took place on 30 September 2023. On that date, all the assets and liabilities of the company acquired were valued at their fair value. The cost less accumulated depreciation method was used to determine the fair value of property, plant and equipment assets. Other assets and liabilities were included at their carrying amounts as reported in the original financial statements of ASP as at 30 September 2023, as these were a reasonable approximation of fair value.
The goodwill arising on the acquisition of ASP was fully allocated to intangible assets (EUR 1,354,199) and deferred tax liabilities (EUR 244,200) based on the appraised value.
In April 2023, SavaRe finalised the sale of its ownership interest in G2I, an associated company marketing online motor policies. The effect of the sale on the consolidated financial statements was again of EUR 112,594.
In August 2023, SavaRe established Vita S Holding d.o.o., based in Skopje, North Macedonia, in which it holds an 80% stake. As at 31 December 2023, the balance of the investment was EUR 1,056,000. The company was established to provide a platform for Sava Re to develop healthcare services in North Macedonia. The date of first-time inclusion of the company in the financial statements is 30 September 2023.
In December, the company SO Poslovno Savjetovanje d.o.o. ceased trading. The company was summarily wound up and struck off the register of companies on 22 December 2023. As from the strike off, the company has not been included in the consolidated financial statements. The exclusion of the company had no impact on the consolidated financial statements.
The Company did not make any acquisitions or purchases of other companies in 2022, but S Estate was successfully sold in the first quarter of 2022. SavaCar (MNE) established the vehicle inspection service Sava Car (SRB) in Serbia in August 2022 in order to strengthen its sales channels, and at the end of 2022 Ornatus KC was renamed ASISTIM.
| Activity | Country of incorporation | Assets | Liabilities | Equity as at 31 December 2023 | Profit or loss for 2023 | Total income | Share of voting rights (%) |
|---|---|---|---|---|---|---|---|
| Zavarovalnica Sava | Slovenia | 1,070,662,541 | 822,568,735 | 248,093,806 | 26,313,921 | 590,454,064 | 100.00% |
| Sava Neživotno Osiguranje (SRB) | Serbia | 36,984,172 | 24,941,666 | 12,042,506 | 1,177,260 | 43,994,910 | 100.00% |
| Illyria | Kosovo | 27,071,632 | 16,550,901 | 10,520,731 | 1,025,462 | 18,836,128 | 100.00% |
| Sava Osiguruvanje (MKD) | North Macedonia | 24,383,956 | 15,850,119 | 8,533,837 | -40,791 | 22,129,006 | 93.86% |
| Sava Osiguranje (MNE) | Montenegro | 32,096,784 | 19,774,812 | 12,321,972 | 3,585,668 | 21,627,386 | 100.00% |
| Illyria Life | Kosovo | 18,144,263 | 11,204,276 | 6,939,987 | 1,074,443 | 2,989,118 | 100.00% |
| Sava Životno Osiguranje (SRB) | Serbia | 16,083,286 | 8,693,789 |
| 7,389,497 | 640,302 | 4,901,309 | 100.00% | |||||
|---|---|---|---|---|---|---|---|---|
| Sava Car (MNE) | technical research and analysis | Montenegro | 1,692,500 | 898,736 | 793,764 | 64,878 | 1,004,399 | 100.00% |
| ZM Svetovanje | consulting and marketing of insurances of the person | Slovenia | 194,125 | 86,286 | 107,839 | -24,251 | 769,117 | 100.00% |
| Asistim (former Ornatus KC) | ZS call centre | Slovenia | 108,529 | 50,256 | 58,273 | 13,730 | 611,660 | 100.00% |
| Sava Agent | insurance agency | Montenegro | 2,195,357 | 1,842,616 | 352,741 | 150,720 | 899,415 | 100.00% |
| Sava Station | technical research and analysis | North Macedonia | 383,778 | 41,260 | 342,518 | 116,353 | 258,370 | 93.86% |
| Sava Pokojninska | pension fund | Slovenia | 215,013,455 | 206,735,828 | 8,277,627 | 506,936 | 3,339,857 | 100.00% |
| TBS Team 24 | organisation of assistance services and customer service | Slovenia | 5,986,410 | 4,455,392 | 1,531,018 | 1,516,776 | 23,041,366 | 87.50% |
| Sava Penzisko Društvo | pension fund management | North Macedonia | 12,907,901 | 602,331 | 12,305,570 | 2,247,309 | 5,923,762 | 100.00% |
| Sava Infond | fund management activities | Slovenia | 11,338,888 | 1,926,327 | 9,412,561 | 4,144,562 | 13,248,955 | 100.00% |
| Vita | insurance | Slovenia |
| Activity | Country of incorporation | Assets | Liabilities | Equity as at 31 December 2022 | Profit or loss for 2022 | Total income | Share of voting rights (%) |
|---|---|---|---|---|---|---|---|
| Zavarovalnica Sava | Slovenia | 759,592,290 | 357,916,633 | 401,675,657 | 21,235,385 | 501,357,038 | 100.00% |
| Sava Neživotno Osiguranje (SRB) | Serbia | 30,955,215 | 19,303,907 | 11,651,308 | 1,226,162 | 30,822,465 | 100.00% |
| Illyria | Kosovo | 23,469,413 | 14,036,535 | 9,432,878 | 1,157,003 | 14,820,413 | 100.00% |
| Sava Osiguruvanje (MKD) | North Macedonia | 20,637,323 | 11,624,291 | 9,013,032 | 1,724,769 | 17,561,340 | 93.86% |
| Sava Osiguranje (MNE) | Montenegro | 28,827,128 | 18,913,556 | 9,913,572 |
If the new companies had been part of the Group since 1 January 2023, total revenue and net profit for 2023 would have totalled EUR 788,480,228 and EUR 51,591,512, respectively.
| Company | Activity | Country | Assets | Liabilities | Equity | Profit/Loss | Total Income | Share of Voting Rights (%) |
|---|---|---|---|---|---|---|---|---|
| Sava Car (SRB) | technical research and analysis | Serbia | 52,352 | 16,036 | 36,316 | -45,646 | 202,756 | 100.00% |
| ASP (SRB) | maintenance services for core IT systems | Serbia | 306,636 | 82,122 | 224,514 | 86,564 | 287,881 | 100.00% |
| Vita SHolding (MKD) | North Macedonia | 1,307,325 | 234 | 1,307,091 | -10,941 | 0 | 80.00% |
| Illyria Life | insurance | Kosovo | 15,978,290 | 9,970,436 | 6,007,854 | 780,239 | 2,642,941 | 100.00% |
|---|---|---|---|---|---|---|---|---|
| Sava ŽivotnoOsiguranje (SRB) | insurance | Serbia | 13,440,297 | 5,989,804 | 7,450,493 | 603,939 | 3,751,693 | 100.00% |
| Sava Car (MNE) | technical research and analysis | Montenegro | 1,896,441 | 941,191 | 955,250 | 186,544 | 1,053,892 | 100.00% |
| ZM Svetovanje | consulting and marketing of insurances of the person | Slovenia | 231,930 | 101,383 | 130,547 | -21,870 | 932,598 | 100.00% |
| Asistim (former Ornatus KC) | ZS call centre | Slovenia | 95,074 | 50,530 | 44,544 | 24,614 | 517,040 | 100.00% |
| Sava Agent | insurance agency | Montenegro | 2,233,523 | 1,724,474 | 509,049 | 139,321 | 844,453 | 100.00% |
| Sava Station | technical research and analysis | North Macedonia | 265,543 | 39,237 | 226,306 | 47,739 | 290,008 | 93.86% |
| Sava Pokojninska | pension fund | Slovenia | 195,761,299 | 188,667,015 | 7,094,284 | -621,261 | 2,748,734 | 100.00% |
| TBS Team 24 | organisation of assistance services and customer service | Slovenia | 4,386,768 | 3,411,534 | 975,234 | 960,992 | 15,960,076 | 87.50% |
| Sava Penzisko Društvo | pension fund management | North Macedonia | 11,563,696 |
| Company | Type of Activity | Country | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | Non-controlling interest as % of equity | Proportion of non-controlling interest voting rights, in % |
|---|---|---|---|---|---|---|---|---|---|---|
| SO Poslovno Savjetovanje d.o.o. | business consulting | Croatia | 4,917,431 | 8,374 | 4,909,057 | -7,916 | 7,315 | 100.00% | ||
| Sava Infond | fundmanagement activities | Slovenia | 10,329,678 | 1,035,019 | 9,294,659 | 3,290,258 | 11,766,747 | 100.00% | ||
| Vita | insurance | Slovenia | 639,196,168 | 561,819,030 | 77,377,138 | 11,362,075 | 29,511,662 | 100.00% | ||
| Sava Car (SRB) | technicalresearch and analysis | Serbia | 87,338 | 5,389 | 81,949 | -18,097 | 20,238 | 100.00% |
| Income | 2023 | 2022 |
|---|---|---|
| Total Income | 22,129,006 | 17,561,340 |
| Other Income | 258,370 | 290,008 |
| Grand Total | 23,041,366 | 15,960,076 |
| -40,791 | 1,724,769 | 116,353 | 47,739 | 1,516,776 | 960,992 | -10,941 | |
|---|---|---|---|---|---|---|---|
| - Of non-controlling interest | -2,503 | 105,845 | 7,140 | 2,930 | 189,597 | 120,124 | -2,188 |
| 283,570 | 285,839 | 13,919 | 10,845 | 49,087 | 60,208 | 263,606 | |
|---|---|---|---|---|---|---|---|
| - Of non-controlling interest | 17,402 | 17,541 | 854 | 666 | 6,136 | 7,526 | 52,721 |
| 242,779 | 2,010,608 | 130,272 | 58,584 | 1,565,863 | 1,021,200 | 252,665 | |
|---|---|---|---|---|---|---|---|
| - Of non-controlling interest | 14,899 | 123,386 | 7,994 | 3,595 | 195,733 | 127,650 | 50,533 |
| 14,630 | 0 | 0 | 0 | 120,124 | 110,460 | 0 |
|---|---|---|---|---|---|---|
| 24,383,956 | 20,637,323 | 383,778 | 265,543 | 5,986,410 | 4,386,768 | 1,307,325 |
|---|---|---|---|---|---|---|
| 15,850,119 | 11,624,291 | 41,260 | 39,237 | 4,455,392 | 3,411,534 | 234 |
|---|---|---|---|---|---|---|
| 8,533,837 | 9,013,032 | 342,518 | 226,306 | 1,531,018 | 975,234 | 1,307,091 |
|---|---|---|---|---|---|---|
The company was acquired in 2023.
The parent company prepared both separate and consolidated financial statements as at 31 December 2023. The consolidated financial statements include SavaRe as the parent and all its subsidiaries, i.e. companies in which Sava Re holds, directly or indirectly, more than half of the voting rights and has the power to control their financial and operating policies so as to obtain benefits from their activities.
The consolidated financial statements of the Sava Insurance Group include all companies directly or indirectly controlled by SavaRe, which controls a company if and only if it has all the following elements:
The Group’s consolidated financial statements also include associate companies in which the members of the Sava Insurance Group (parent and subsidiaries) hold, directly or indirectly, between 20% and 50% of all voting rights. If they hold less than 20%, they can still have significant influence, provided such influence can be demonstrated.
All subsidiaries in the Sava Insurance Group are fully consolidated. The Group does not apply the exemption to exclude any of its companies from full consolidation. Interests in associates and joint ventures are accounted for in the consolidated financial statements using the equity method.
The financial year of the Group is the same as the calendar year. Subsidiaries are fully consolidated as of the date of obtaining control and are deconsolidated as of the date that such control is lost.
Subsidiaries that manage pension funds (except Slovenia-based Sava Pokojninska Družba) and management companies that manage the funds’ assets are consolidated without the funds as under laws such fund assets are separate from the assets of the company that manages them. Accordingly, these funds are not included in the consolidated financial statements.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Subsequently, goodwill is measured at cost less any impairment losses. The non-controlling interest is measured at the current proportionate share of the equity interests in the acquiree’s recognised net assets.
When acquiring a non-controlling interest in a subsidiary (when the Group already holds a controlling interest), the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. The Group recognises any difference between the amount by which the non-controlling interests are adjusted, and the fair value of the consideration paid directly in equity, and attributes it to the owners of the parent. The difference between cost and the carrying amount of the non-controlling interest is accounted for in equity under capital reserves.
Profits earned and losses made by subsidiaries are included in the Group’s income statement. Intra-Group transactions (receivables and liabilities, expenses and income between the consolidated companies) have been eliminated.
All companies within the Group apply uniform accounting policies. If the accounting policies of a subsidiary differ from the accounting policies applied by the Group, appropriate adjustments are made to the financial statements of such subsidiary prior to the compilation of the consolidated financial statements to ensure compliance with the accounting policies of the Group.
Significant accounting policies applied in the preparation of the consolidated and separate financial statements are set out below. In 2023, the Group applied the same accounting policies as in 2022. The Group and the Company have applied for the first time the new standards IFRS 17 “Insurance Contracts” and IFRS 9 “Financial Instruments” in the reporting. The impact of the first application is described in more detail in section 16.6 – Transition to the new standards IFRS 17 “Insurance Contracts” and IFRS 9 “Financial Instruments”.
The consolidated and separate financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB), and interpretations of the International Financial Reporting Interpretations Committee (IFRIC), as adopted by the European Union. They have also been prepared in accordance with applicable Slovenian legislation (the Companies Act – ZGD-1). The “Sava Insurance Group financial control rules” lay down accounting policies that must be followed by subsidiaries when reporting for consolidation purposes. The “Rules on accounting and accounting policies of Sava Re d.d.” set down in detail the accounting policies of the Company.
Interested parties can obtain information on the financial condition and results of operations of the Sava Insurance Group by consulting the annual report. Annual reports are available on SavaRe’s website and at its registered office.
In selecting and applying accounting policies, as well as in preparing the financial statements, the management board of the parent company aims at providing understandable, relevant, reliable and comparable accounting information.
The Company’s management board approved the audited financial statements on 15 March 2024.
The financial statements have been prepared based on the going-concern assumption, which is further described in section 16.7.1.5 “Risk assessment and going concern assumption”. The financial statements have been prepared on the historic cost basis, except for financial assets, including policyholder assets, which are valued on both the fair value and amortised cost basis.
The financial statements are presented in euros (EUR) without cents. For ease of presentation, some figures in the notes to the financial statements are rounded to million euro. The euro is the functional and presentation currency of Sava Re. The financial statements of the subsidiaries that have a functional currency different from the presentation currency are translated into euros as described below. Rounding of values may result in insignificant differences in the table totals.
All balances as at 31 December 2023 whose original value is in a foreign currency have been translated into euro at the rates of the European Central Bank (ECB) reference rate list published by the Bank of Slovenia as at 31 December 2023. Amounts in the income statements have been translated using the average exchange rate. Balances as at 31 December 2022 and 31 December 2023 have been translated at the applicable daily or monthly ECB exchange rate for each currency. If the Bank of Slovenia does not publish the exchange rate for a particular currency, the exchange rate published on Bloomberg is used. Foreign exchange differences arising on settlement of transactions and on translation of monetary assets and liabilities are recognised in the income statement. Exchange rate differences associated with non-monetary items, such as equity securities carried at fair value through profit or loss, are also recognised in the income statement, while exchange rate differences associated with equity securities classified as available for sale are recognised in the fair value reserve. Since equity items in the statement of financial position as at 31 December 2023 are translated using the exchange rates of the ECB on that day and since interim movements are translated using the average exchange rates of the ECB, any differences arising therefrom are disclosed in the equity item translation reserve.
In the consolidated financial statements, exchange rate differences resulting from the translation of a net investment in a foreign subsidiary are recognised in the equity item translation reserve.
In measuring insurance contracts under IFRS 17, an individual group of insurance contracts that generates cash flows in a foreign currency, including the contractual service margin, is treated as a monetary item. The Company and the Group have endorsed the single currency denomination approach, which means that a single currency is determined for the calculation of the contractual service margin based on the prevailing currency of cash flows. The dominant or principal currency for a contract may be determined in the underwriting process or may be determined on the basis of the prevailing cash flows of the contracts included in a group of contracts, for example, portfolios of contracts from specific foreign markets.
Assumptions and other sources of uncertainty relate to estimates that require management to make complex, subjective and comprehensive judgements. The most important areas that involve significant management judgement are presented below.
Other areas of management judgement:
• Intangible assets are tested for impairment at least annually. If there is any indication of impairment, the recoverable amount of the intangible asset is reviewed.
• Deferred tax assets and liabilities are recognised if Group entities plan to realise a profit in their medium-term projections. For details, see section 16.4.11; deferred tax assets and liabilities are presented in note 16.8.4.
• Receivables are impaired in line with the accounting policy set out in section 17.4.16 “Receivables”.
• The actuarial assumptions used in the calculation of employee benefits for severance pay upon retirement and jubilee benefits are described in section 16.4.19 “Other provisions”, and the sensitivity analysis of the assumptions used is presented in note 16.8.30 “Other provisions”.
• The valuation of non-current assets held for sale is set out in section 16.4.10.
The cash flow statement has been prepared using the indirect method. The cash flow statement has been prepared as the sum of all cash flows of all Group companies less any intra-Group cash flows. Cash flows from operating activities have been prepared based on data from the 2023 statement of financial position and income statement, with appropriate adjustments for items that do not constitute cash flows. Cash flows from financing and investing activities are shown based on actual receipts and disbursements. Items relating to changes in net current assets are shown net.
Intangible assets, except goodwill, are stated at cost, including any expenses directly attributable to preparing them for their intended use, less accumulated amortisation and any impairment losses. Amortisation is calculated for each item separately, on a straight-line basis. Intangible assets are first amortised upon their availability for use.
Intangible assets include computer software and software-related licences (which typically have a useful life of between 5 and 7 years). In case of recognition of a specific intangible asset (such as a customer list or contractual customer relationships), the useful life is determined for each such asset separately.
Intangible assets are tested for impairment at least annually. If there is any indication of impairment, the recoverable amount of the intangible asset is reviewed. The recoverable amount is the net value in use estimated using future cash flows. Value in use is determined based on management’s assessment.
If the recoverable amount exceeds or is equal to the carrying amount, the asset is not impaired. An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount.
Goodwill arises on the acquisition of subsidiaries. In acquisitions, goodwill relates to the excess of the cost of the business combination over the acquirer’s interest in the fair value of the identifiable assets, liabilities and contingent liabilities of the acquired company. If the excess is negative (a gain on a bargain purchase), it is recognised directly in the income statement.
The recoverable amount of the cash-generating unit so calculated is compared against its carrying amount, including goodwill belonging to such unit. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs of disposal and value in use. Goodwill is not amortised.
Value in use for each cash-generating unit is calculated using the discounted cash flow method (DCF method). The budget projections of each acquired company representing a cash-generating unit and the estimate of the long-term results achievable are used as a starting point. Value in use is determined by reference to free cash flows discounted at an appropriate discount rate.
The discount rate is determined as the cost of equity (COE), using the capital asset pricing model (CAPM). It is based on the interest rate on risk-free securities, equity premium, and insurance business prospects applying the beta factor. Added is a country risk premium and a size premium.
The elements of the discount rate have been taken from:
The bases for the testing of value in use are prepared in several phases: In phase one, the Company prepares five-year projections of performance results for each company as part of the regular planning process unified Group-wide. These strategic plans are approved by the parent company and confirmed by the relevant governance body. For insurance, pension and mutual fund management companies, it is additionally assessed whether the capital required for an insurance company to operate under local regulations would be fully engaged.
Premium growth and profitability was planned for foreign insurance companies in five-year projections in view of the low insurance penetration rates. Insurance penetration is expected to increase markedly due to the expected convergence of their countries’ macroeconomic indicators towards levels common in western European countries. Western Balkan markets, which have a relatively low penetration rate, are expected to see a faster growth in gross premiums than in expected GDP.
The profitability of pension companies is expected to grow, driven by increased contributions to pension funds as the result of demographic trends and at relatively fixed operating costs.
To estimate the residual value used in the calculation of the estimated value of equity, the calculation considers normalised cash flow in the last year of the forecast made using the Gordon growth model. The valuations used a long-term growth rate (g) of the risk-free rate of return (2.3%) to estimate the residual value beyond the projection period.
A cash-generating unit consists of an individual company. Movement in goodwill is discussed in detail in section 16.8.1.
Goodwill of associate companies is included in their respective carrying amount. Any impairment losses on their goodwill are treated as impairment losses on investments in associate companies.
Section 16.8.1 sets out the main assumptions for cash flow projections with a calculation of value in use.
Items of property, plant and equipment are initially recognised at cost, including cost directly attributable to the acquisition of the asset. Subsequently, the cost model is applied: assets are carried at cost, less accumulated depreciation and any impairment losses.
Items of property, plant and equipment are first depreciated upon their availability for use. Depreciation is calculated for each item separately, on a straight-line basis. Depreciation rates are determined so as to allow the cost of property, plant and equipment assets to be allocated over their estimated useful lives.
| Depreciation group | Rate |
|---|---|
| Land | 0.0% |
| Buildings | 1.3–2.0% |
| Transportation means | 15.5–20.0% |
| Computer equipment | 33.33% |
| Office and other furniture | 10.0–12.5% |
| Other equipment | 6.7–20.0% |
Gains and losses on the disposal of items of property, plant and equipment, calculated as the difference between sales proceeds and carrying amounts, are included in profit or loss. The costs of property, plant and equipment maintenance and repairs are recognised in profit or loss as incurred.
The cost of major repairs and replacement of part of an item of property, plant and equipment is recognised in the carrying amount of the asset, if it is probable that future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. Replaced parts are derecognised.
Investments in property, plant and equipment assets that increase future economic benefits are recognised in their carrying amount.
At inception of a contract, an assessment is made whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
At the commencement date of the lease, an asset acquired under a lease is recognised as a right-of-use asset and a lease liability. Short-term leases (of up to 12 months) and low-value leases (the cost of an asset is less than EUR 5000) are exempt from recognition as right-of-use assets and lease liabilities. Short-term and low-value leases are treated by the Group companies as lease expenses, which are recognised in the income statement and classified within operating activities in the cash flow statement.
Right-of-use assets are measured applying a cost model. On initial recognition at the commencement date of the lease, the cost of a right-of-use asset comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date of the lease, any initial direct costs incurred by the lessee, and an estimate of the costs to be incurred by the lessee in dismantling and removing the underlying asset. On subsequent measurement, the initial cost of a right-of-use asset is reduced by any accumulated depreciation and any accumulated impairment losses and adjusted for any remeasurement of the lease liability.
Right-of-use assets are depreciated on a straight-line basis over the lease term. If, by the end of the lease term, the lease transfers the ownership of the underlying asset to the lessee, or if the value of the right-of-use asset reflects that the lessee will exercise a purchase option, the lessee depreciates the right-of-use asset from the commencement date until the end of the useful life of the underlying asset. Otherwise, the lessee depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
At the commencement date, the Group measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee uses the lessee’s incremental borrowing rate. After initial recognition, the lease liability is measured by increasing the carrying amount to reflect interest on the lease liability and by reducing the carrying amount to reflect the lease payments made. Right-of-use assets and lease liability are recognised net of taxes.
The lessee’s incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The incremental borrowing rate is determined based on the yield to maturity of unsecured bonds given the credit rating of Sava Re and the maturity profile (1–30 years). To this is added a country risk premium as the difference between the credit rating of each country and that of Sava Re, which already includes the country risk of Slovenia.
The lease term is the non-cancellable period for which a lessee has the right to use an underlying asset. The lease term includes periods covered by an option to extend the lease, if the lessee is reasonably certain to exercise that option, and periods covered by an option to terminate the lease, if the lessee is reasonably certain not to exercise that option. For leases of indefinite duration and leases with an extension option, the lease term is either contractually fixed or estimated based on the Group’s past experience and strategic priorities.
Right-of-use assets and lease liability are presented as two separate line items in the statement of financial position. In the income statement, the depreciation charge is a component of operating expenses or expenses, whereas interest expense is a component of finance costs. In the statement of cash flows, cash payments for the principal portion of the lease liability are classified within financing activities, and cash payments for the interest portion within operating activities.
A lease modification is deemed a separate lease only if it involves the addition of the right to use one or more underlying assets at a price that would apply if the additional asset were leased on a stand-alone basis. The existing liability is remeasured by taking into account the new level of the consideration for the lease, when the new asset is added, the total consideration is spread evenly over all the related underlying assets, taking into account the new lease term, and remeasuring the lease liability using the new discount rate in effect at the time of the modification.
On the other side, an adjustment is made to the right-of-use asset based on the difference between the remeasured liability and the liability before the modification. If the carrying amount of the latter is zero and there is a further reduction in the measurement of the lease liability, any remaining amount of the remeasurement is recognised in profit or loss.
A non-current asset is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, its sale must be highly probable, and it must be available for immediate sale in its present condition. There must be a management commitment to sell the asset, and the sale should be completed within one year. Such assets are measured at the lower of the assets’ carrying amount or fair value less costs to sell. Non-current assets are tested for impairment at least annually. If there is any indication of impairment, the recoverable amount of the non-current asset is reviewed.
Deferred tax assets and liabilities are amounts of income taxes expected to be recoverable or payable, respectively, in future periods depending on taxable temporary differences. Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position and its tax base.
Deferred tax assets and liabilities are established from:
Deferred tax liabilities are created for fair value adjustments and on initial recognition of intangible assets (customer lists or contractual relationships with customers) on acquisition of a new company. Deferred tax liabilities have also been created for the comparative year 2022 as a result of the transition to the new accounting standards IFRS 17 and IFRS 9.
Deferred tax assets and liabilities of a Group company are offset only if they relate to income taxes levied by the same taxation authority and the company has a legally enforceable right to set off current tax assets against current tax liabilities. In the consolidated financial statements, deferred tax assets and liabilities are offset depending on the jurisdiction.
A deferred tax asset is recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised.
Investment property comprises assets not used directly for carrying out business activities but held to earn rent or to realise capital gains at disposal. Investment property is accounted for using the cost model and straight-line depreciation. Investment property is depreciated at the rate of 1.3–2.0%. The basis for calculating the depreciation rate is the estimated useful life. All leases where the Group companies act as lessors are cancellable operating leases. Lease payments (rentals) received are recognised as income on a straight-line basis over the lease term. A cash-generating unit consists of an individual property. An assessment is made annually as to whether there is an indication of impairment of investment property. If any such indication exists, an estimate of the recoverable amount of the asset is made. The recoverable amount is the higher of the value in use and the net selling price less costs to sell. If the recoverable amount exceeds or is equal to the carrying amount, the asset is not impaired.
Investments in subsidiaries are measured at cost, less any impairment losses. Subsidiaries are entities in which the Company holds more than 50% of voting rights and which the Company controls, i.e. has the power to control their financial and operating policies so as to obtain benefits from their activities. Subsidiaries are included in the consolidated financial statements using the full consolidation method.
Associates are entities in which the Company holds between 20% and 50% of voting rights or over which the Company has significant influence. Associates are accounted for using the equity method.
Impairment testing in Group companies and associates is carried out at least on an annual basis. Pursuant to IAS 36, the controlling company, when reviewing whether there are indications that an asset may be impaired, considers external (changes in market or legal environment, interest rates, elements of the discount rate, capitalisation) as well as internal sources of information (business volume, manner of use of asset, actual versus budgeted performance results, decline in expected cash flows and such like).
If impairment is necessary, an impairment test is carried out for each individual investment by calculating the recoverable amount of the cash-generating unit based on the value in use. Cash flow projections used in these calculations are based on the business plans approved by the management for the period until and including 2028. The discount rate used is based on market rates adjusted to reflect company-specific risks.
Assessments as to whether there is any indication of impairment of investments in subsidiaries are made using the same model as for goodwill. See section 16.4.7 “Goodwill” for more information on the assumptions used.
Financial investments and financial liabilities are classified, recognised and measured in accordance with IFRS 9 “Financial Instruments”, as further described as follows.
In accordance with IFRS 9, the Group and the Company classify financial assets on the basis of both their business models for managing the financial assets and the contractual cash flow characteristics of their financial asset. On initial recognition, a financial asset is classified into one of the following measurement categories:
The business model for managing financial assets reflects the management of a group of financial assets to achieve certain objectives. The management of such a group of financial assets is based on:
The business model is determined based on a consideration of the main factors mentioned above that influence the purpose of achieving the asset management objectives.
The following business models are defined:
For the purpose of classifying financial assets in terms of their contractual cash flow characteristics (the SPPI test), the principal amount represents the fair value of the financial asset at initial recognition. For the purpose of classifying financial assets in terms of their contractual cash flow characteristics (the SPPI test), interest consists of consideration for the time value of money, for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.
A financial asset is measured at amortised cost (AC) if both of the following conditions are met:
A financial asset is measured at fair value through other comprehensive income (FVOCI) if both of the following conditions are met:
A financial asset is measured at fair value through profit or loss (FVTPL) if:
Assets measured at amortised cost in accordance with IFRS 9 are deposits with a maturity of more than three months, loans and debt securities classified as hold to collect at the date of transition to IFRS 9 that the Group and the Company will hold to maturity.
Upon adoption of IFRS 9, the Group and the Company classify debt instruments into the hold to collect and sell business model. The classification of an investment in this business model is subject to the SPPI test, which confirms that the contractual cash flows are solely payments of principal and interest.
It follows from the above that the Group and the Company have the majority of their debt securities classified as financial assets measured at fair value through other comprehensive income (FVOCI).
Under IFRS 9, equity instruments are classified as at fair value through profit or loss, but the option to measure at fair value through other comprehensive income (FVOCI) exists for shares and participations in accordance with the standard. The Group companies have equity instruments classified mainly in the fair value through profit or loss (FVTPL) group.
Other types of investments, such as units in collective investment undertakings, ETFs, alternative funds, etc. are classified as measured at fair value through profit or loss (FVTPL) under IFRS 9.
The Group and the Company classify financial liabilities as subsequently measured at amortised cost. The Group and the Company do not have any financial liabilities that are irrevocably designated as at fair value through profit or loss at initial recognition as this results in more relevant information because it eliminates or significantly reduces a measurement or recognition inconsistency (accounting mismatch) that would otherwise arise from measuring assets or liabilities or recognising the related gains and losses on different bases.
The Group and the Company recognise a financial asset or a financial liability in their statements of financial position when, and only when, the Group and the Company become party to the contractual provisions of the financial instrument. When the Group and the Company first recognise a financial asset, it is classified and measured in accordance with the Group’s and the Company’s accounting policies.
A regular way purchase or sale of a financial asset is recognised and derecognised using trade date accounting.
Except for trade receivables, at initial recognition, the Group and the Company measure a financial asset or financial liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.
After initial recognition, the Group and the Company measure a financial asset at:
The Group and the Company apply the impairment requirements of the standard to financial assets that are measured at amortised cost and financial assets that are measured at fair value through other comprehensive income.
After initial recognition, the Group and the Company measure a financial liability at:
Financial assets measured at amortised cost are measured at amortised cost using the effective interest method. They are stated at the principal amount outstanding, plus any unpaid interest and fees, less any impairment. Interest income is calculated using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for:
The effective interest rate is determined at the time of purchase of the investment. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortised cost of a financial liability.
When the contractual cash flows of a financial asset are renegotiated or otherwise modified and the renegotiation or modification does not result in the derecognition of that financial asset in accordance with the accounting policies, the Group and the Company recalculate the gross carrying amount of the financial asset and recognise a modification gain or loss in profit or loss.
The Group and the Company directly reduce the gross carrying amount of a financial asset when they have no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. A write-off constitutes a derecognition event.
betweenthe carrying amount (measured at thedate ofderecognition) and theconsideration received (including anynew asset obtained less any new liability assumed) is recognised in profit or loss.
The Group and the Company remove afinancial liability (or part of afinancial liability) fromtheir statements offinancial position when, andonly when, it is extinguished, i.e. the contractualobligation is discharged,cancelled orexpires. The difference between thecarrying amount of afinancial liability (or part ofa financial liability) extinguishedor transferred to anotherparty andthe consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
The Group and the Company apply theexpected credit loss concept under IFRS9, which is based on therecognition andmeasurement of anallowance for expected credit losses for financialassets measured at amortisedcost or fair value through other comprehensive income(bonds, deposits, loans granted). In thecase of afinancial asset measured atfair value through other comprehensive income, anallowance for expected credit losses is recognised in other comprehensive income anddoes not result in a reduction in the carryingamount of the financial assetin the statement offinancial position.
The Group and the Company determine the expected credit loss by recognising and measuring aloss allowance for expected credit losses, which is calculated based on the classification into one ofthree stages:
| Stage 1 | for assetsfor whichcredit risk hasnot increased significantly since initial recognition, expected 12-month credit losses are calculated. |
|---|---|
| Stage 2 | for assetsfor whichcredit risk hasincreased significantly since initial recognition, lifetime expected credit losses are calculated. |
| Stage 3 | for assetsthat are credit-impaired orin default, wherethe lifetime expected credit loss is calculated andconsiders theappropriate probability ofdefault aswell as expected cash flowsstemming fromproceeds fromsale, etc., but at the net carryingamount (the gross carryingamount less any impairment loss). |
At eachinvestment valuation, the Group and the Company performa classification into stagesbased on the information obtained on thechange in the credit risk of each issuer. Inorder to assesssignificant increases in credit risk, theGroup andthe Company regularly monitor and analyse any changesin externalcredit ratingsobtained fromexternal credit assessment institutions(ECAIs). The first measure of increased credit risk since initialrecognition usedby the Group andthe Company is a three-notch downgrade and reclassification of the investment from investment grade to speculative grade.
In addition, the Group and the Company use an internal model to assess external credit ratings or use internal credit ratings to identify increased credit risk, monitor the zero-volatility spread(Z-spread) of investments and other available qualitative informationwhen anexternal credit rating is not available.
If, at thereporting date, the credit risk on a financial instrument hasnot increased significantly since initial recognition, the Group andthe Company measure theloss allowance for that financialinstrument atan amount equal to 12-month expected credit losses. For assetsfor whichcredit risk has increased significantly since initial recognition, lifetime expected credit losses are calculated.
Expectedcredit losses area probability-weighted estimate ofcredit losses (i.e. the present value of all cash shortfalls) over the expected life of the financial instrument.
Expectedcredit losses aredetermined based on historicaldata on recoverability, expected macroeconomic trends andcertain other factors that indicate the expected solvency of adebtor.
The main input parameters for determiningcredit losses are theprobability of default (PD), the loss given default (LGD) andthe exposure at default (EAD). The expected credit loss is the product of theexpected probability of default, the expected loss given default and the expected exposure at the time of default.
The Company and theGroup obtain the PD parameter fromMoody’s ratingreports, wherelong-term averages ofdefault rates andtransition matrices frominitial to final ratingover agiven period can be obtained.The reports areseparate for corporate and government bonds, and thedata is updated once a year. The underlyingdata have been adjustedbased on expectations for theeconomic situation, thus achieving the forward-looking approach required by the standard.
The standard provides no guidanceon how to determine the loss givendefault (LGD)or the recovery rate (RR), whichis why theGroup andthe Company follow established practice and usedata provided by credit rating agenciesannually calculated based on historicaldata. Such reports containa section on corporate andone on government bonds. Due to ease ofaccess andthe comprehensive presentation of default rates in reports, the Group’sand the Company’s methodology has focused on the credit rating agencyMoody’s, whilecomparative informationcan also be obtainedfrom the reports prepared by S&P Global Ratings.
Indetermining counterparty default risk, the Group andthe Company consider criteria such asthat at least oneof the ratingagencies assesses that the issueror a specific issue offinancial instruments is in default (excluding technical default, i.e. default by the borrower) or30 days past duefor bonds and90 days past due for loans with respect to the payment of principal or interest.
The Group and the Company write off an asset ifthere is no reasonable expectation that the financial asset will be recovered, in whole or in part. A write-off is treated as a derecognition event.
Anygain and loss arising froma change in the fair value of financial assetsat fair value throughprofit or loss are recognised in profit or loss in the period in which it arises.
Dividends are recognised in profit or loss only when:
At initialrecognition, theGroup andthe Company may make an irrevocable election to present in other comprehensive incomesubsequent changes in the fair value of aninvestment in an equity instrument that is neither held for trading nor contingentconsideration recognisedin other comprehensive income. If an entity makes this election, it recognises in profit or loss dividends from that investment.
Again orloss on afinancial asset that is measured at amortisedcost and is not part ofa hedging relationshipis recognisedin profitor loss when the financial assetis derecognised, reclassified, through the amortisation process or in order to recognise impairment gains or losses.
The Group and the Company recognisea gain orloss on afinancial liability that is designated as atfair value through profit or loss as follows:
Again orloss on afinancial asset measuredat fair value through other comprehensive income is recognised in other comprehensive income, exceptfor impairment gains orlosses and foreign exchange gains andlosses, until the financial assetis derecognised or reclassified. When afinancial asset is derecognised, thecumulative gain orloss previously recognisedin other comprehensive incomeis reclassified from equity to profit orloss as areclassification adjustment. Interest calculated using the effective interest method is recognised in profit or loss.
The Group and the Company measureall financial instruments at fair value, except for deposits, shares not quotedin anyregulated market that do not represent asignificant portion of the investment portfolio, loans (assumingthat their carrying amount is a reasonable approximationof fair value) and financial instruments measured at amortisedcost. The fair value of investment property,and land andbuildings used in business operations and the fair value of financial instruments measured atamortised cost are set out in note 16.8.34.
Fairvalue is the price that would bereceived to sell anasset or paidto transfer a liabilityin anorderly transaction between market participants at the measurement date. The fair value measurementis based on thepresumption that the transaction to sell theasset or transfer the liability takes place either (i) in the principal market for the assetor liability, or (ii) in the absence of aprincipal market, in the mostadvantageous market for the asset orliability. The principal or the mostadvantageous market must beaccessible to the Group and the Company.
The fair value ofan assetor aliability is measuredusing the assumptions that market participants would use when pricing the assetor liability, assuming that market participants act in their economic best interest.
Afair value measurement of anon-financial assettakes into account a market participant’sability to generate economic benefits by using the assetin its highest and best useor by selling it to another market participant that would use the assetin its highest and bestuse. Valuation techniques are usedthat are appropriate in the circumstances andfor whichsufficient data are availableto measurefair value, maximisingthe use of relevantobservable inputs andminimising theuse of unobservableinputs.
Onthe valuation date, the fair value of a financial investment is established by determiningthe price in the principal market based on:
For thevaluation, the Group and the Company usethe closing price on the stock exchange or the published BID bid price for debt investments (according to thedefined Bloomberg methodology)as the unadjustedquoted price, while the BVALbid price calculated on the basis ofthe internal valuationmodel or the yield curve valuation do not represent unadjusted quoted prices.
determine the price of a financial investment using a model with unobservable inputs, as defined in IFRS 13.86 to IFRS 13.90.
To assess the quality of the BVAL rate, the Company uses the BVAL Score, the number of direct observations and the proportion and age of quotes.
Assets and liabilities measured or disclosed at fair value in the financial statements are measured and presented in accordance with the IFRS 13 fair-value hierarchy that categorizes the inputs of valuation techniques used to measure fair value into three levels.
Assets and liabilities are classified based primarily on the availability of market information, which is determined by the relative levels of trading identical or similar instruments in the market, with a focus on information that represents actual market activity or binding quotations of brokers or dealers.
Investments measured or disclosed at fair value are presented in accordance with the levels of fair value, which categorizes the inputs used to measure fair value into the following three levels of the fair value hierarchy:
This level includes BVAL prices of debt investments that consist of at least 90% direct observations, where market inputs are used for a directly or indirectly identical or similar asset, and where at least 3 quotes must be no more than 15 days old.
- Level 3: financial investments for which observable market data is not available. Fair value is thus determined based on valuation techniques using inputs that are not directly or indirectly observable in the market. The Company classifies securities valued using an internal model that does not take into account level 2 inputs into this level. This level includes BVAL prices of debt investments that do not meet the criteria for level 1 or level 2 and for which the inputs for the model-based valuation are not readily and objectively determinable and available to the company.
The Group and the Company classify as level-3 investments their investments in alternative funds, such as real-estate funds, infrastructure funds, private debt funds, private equity funds and similar. There are no market prices available for such investments; therefore, valuation based on available market data is not possible.
In accordance with IFRS 13.97 and accounting policies, the Group and the Company categorize within the fair value hierarchy also those financial investments that are not measured at fair value in the statement of financial position but for which the fair value is disclosed.
The policy for determining when transfers between levels of the fair value hierarchy are deemed to have occurred is disclosed and is fully complied with. The policy on the timing of recognizing transfers is the same for transfers into the levels and out of the levels. Examples of policies include:
The Group and the Company review quarterly the categorization of investments into the three levels of the fair value hierarchy. To this end, they apply the rules for determining the fair value set out under note 16.8.34. If the conditions for classification change, financial investments are reclassified into the relevant level.
The following table shows the classification of financial investments according to the inputs used and market activity.
| Asset class / principal market | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|
| Debt securities | OTC market | * Debt securities measured based on the CBBT price in an active market. | ||
| * Debt securities valued at the BVAL price if no CBBT price exists and which have a BVAL price composed exclusively of direct observations, with at least 90% of firm quotes, with at least 3 firm quotes no more than one day old. | - Debt securities measured based on the CBBT price in an inactive market. | |||
| - Debt securities valued at the BVAL price if no CBBT price is available and where the BVAL price consists of at least 90% direct observations, with at least 3 quotes no more than 15 days old. | * Debt securities measured using an internal model based on level 2 inputs. | |||
| * Debt securities measured using an internal model that does not consider level 2 inputs. | ||||
| * Debt securities measured using BVAL prices, if no CBBT price is available and the BVAL price does not meet the criteria for level 1 or 2 and for which the inputs for the model-based valuation are not readily and objectively determinable and available to the company. | ||||
| Stock exchange | - Debt securities measured based on stock exchange prices in an active market. | * Debt securities measured based on stock exchange prices in an inactive market. | ||
| * Debt securities measured using an internal model based on level 2 inputs. | - Debt securities measured using an internal model that does not consider level 2 inputs. | |||
| Quoted portfolio shares | Stock exchange | * Shares measured based on prices in an active market. | - Shares measured based on prices in an inactive market. | * Shares with unavailable market prices measured using an internal model based on level 2 inputs. |
| * Shares are measured using an internal model that does not consider level 2 inputs. | ||||
| Mutual funds | Mutual funds measured at the quoted unit value on the measurement date. | |||
| Alternative funds | The fair value is determined based on the valuation of individual projects for which discounted cash flow methods are used. | |||
| Deposits with a maturity of more than 3 months and loans | Measured at amortised cost. |
Contracts of homogeneous groups are classified as investment contracts if they bear significant financial risk and are accounted for in accordance with IFRS 9. Investment contract assets and liabilities only include the investment contract assets and liabilities of the company Sava Pokojninska, which manages pension funds. Investment contract assets comprise the assets supporting the liability funds “My Life-Cycle Funds” for the transaction of voluntary supplementary pension business. Valuation is described in section 16.4.14 “Financial investments”. Classification and valuation of assets is presented in detail in note 16.8.8. Investment contract liabilities are liabilities arising out of pension insurance business under group and individual plans for voluntary supplementary pension insurance, for which the administrator maintains personal accounts for pension plan members. These are liabilities relating to the voluntary supplementary pension life liability fund for premiums paid, guaranteed returns and additional liabilities to cover the difference between the actual return and the guaranteed return. Investment contract liabilities are presented in note 16.8.8.
Sava Pokojninska initially recognizes investment property assets in respect of pension fund business under investment contract assets using the cost model, plus any transaction costs. The following measurements are made using the fair value model due to regulatory requirements and the fact that these are pension fund assets. An assessment is made annually as to whether there is an indication of impairment of investment property. If such indications exist, the process of assessing the value is initiated. At least every three years, appraisals are carried out by certified real estate appraisers licensed by the Slovenian Institute of Auditors. The amounts of investment property in investment contract assets are not adjusted for consolidation purposes.
Write-offs of receivables require appropriate supporting documents, such as a court decision, bankruptcy order or other document evidencing that the company has lost its legal title, or in cases where it is evident that collection is not meaningful due to excessive costs of the proceedings.
Other assets consist of capitalised short-term accruals and deferrals, namely short-term deferred costs.
The statement of financial position and cash flow item “cash and cash equivalents” comprises:
Equity consists of:
Reserves provided for in the articles of association are used:
Pursuant to the Companies Act, the Company’s management board has the power to allocate up to half of the net profit to other reserves.
Subordinated liabilities of the Group and the Company represent a long-term liability of the Group and the Company in the form of a subordinated bond to be used for general corporate purposes of the Sava Insurance Group and to optimise its capital structure and are valued at amortised cost. Details are set out in note 16.8.29.
The Group issues the following types of insurance contracts:
The Group and the Company also have reinsurance contracts that transfer the assumed risks to reinsurers with the aim of reducing risk. These include quota share, surplus, excess of loss and stop loss reinsurance covers. These contracts are measured using the general approach for reinsurance contracts.
The Group and the Company apply IFRS 17 to:
All references in IFRS 17 to insurance contracts issued also apply to reinsurance contracts issued, to insurance contracts acquired by the Group and the Company in a transfer of insurance contracts or a business combination, and to reinsurance contracts held by the Group and the Company (unless it is specifically stated that a particular section applies only to (re)insurance contracts issued).
A contract is deemed an insurance contract if the issuer accepts significant insurance risk from another party by agreeing to compensate the other party if it is adversely affected by a specified uncertain future event (an insured event).
A contract that transfers significant insurance risk from the Group or the Company to a reinsurance company is a reinsurance contract held by the Group or the Company.
In the following, the Company’s and the Group’s inward reinsurance contracts are referred to as insurance contracts and the outward reinsurance contracts are referred to as reinsurance contracts. They are presented in the same way in the financial statements.
The Group also issues insurance contracts with direct participation features for which, at the inception of cover:
An investment contract with discretionary participation features is a financial instrument that provides a particular investor with the contractual right to receive, as a supplement to an amount not subject to the discretion of a Group company, additional amounts:
-the profit or loss of the Group company issuing the contract. Insurance risk is significant if, and only if, the insured event could cause the issuer having to pay additional amounts that are significant in any single scenario, excluding scenarios that have no commercial substance (i.e., no discernible effect on the economics of the transaction), even if the insured event is extremely unlikely or if the expected (i.e., probability-weighted) present value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance contract. Underwriting risk is considered significant to the Group and the Company if the Group and the Company bear at least 5% of the additional payouts in the event of an insured event.
The assessment of whether the above conditions and criteria are met for an insurance contract, an insurance contract with direct participation features or an investment contract with discretionary participation features is made on a contract by contract basis at the time the contract is concluded. In doing so, the Group and the Company take into account all their substantive rights and obligations under the contract.
A set or series of insurance contracts with the same or a related counterparty may achieve, or be designed to achieve, a common commercial effect. In order to report the substance of such contracts, it may be necessary to treat this set or series of contracts as a whole. For example, if the rights or obligations in one contract do nothing other than entirely negate the rights or obligations in another contract entered into at the same time with the same counterparty, the combined effect is that no rights or obligations exist. The Group and the Company have identified some contracts that should be measured together.
An insurance contract may contain, in addition to the insurance component, one or more components that would be within the scope of another standard if they were separate contracts. These components include:
The Group and the Company separate the above components from a host insurance contract if they are distinct from the contract, applying the relevant other IFRSs to the measurement of the separate component. The Group and the Company have not identified any identifiable derivatives, investment components or service components.
An investment component exists if an insurance contract requires the Group or the Company to repay an amount to a policyholder in all circumstances, regardless of whether an insured event occurs.
An investment component is distinct from a host insurance contract if, and only if, both of the following conditions are met:
In making this determination, the Company and the Group take into account all information reasonably available in making this determination.
An investment component and an insurance component are highly interrelated if, and only if:
The Group and the Company issue contracts with an investment component. Examples include certain life insurance policies that pay a surrender value, annuities with a guaranteed payout period and reinsurance contracts with a sliding-scale or profit commission. The investment and insurance components of such contracts are closely related because the Group and the Company cannot measure the insurance contract without considering the investment component and vice versa. Therefore the investment component is not distinct.
The service component refers to the transfer of goods or services that are not insurance-related and, as such, are not dependent on the occurrence of an insured peril (occurrence of a claim).
A service component is distinct if the policyholder can benefit from the good or service either on its own or together with other resources readily available (sold separately or already owned by the policyholder).
A good or service other than an insurance contract service that is promised to the policyholder is not distinct if:
The Group issues contracts that include derivatives, but these instruments are closely related to the host insurance contract and are therefore measured using IFRS 17. Examples of such derivatives include:
The Group and the Company also consider whether a single insurance contract should be split into multiple insurance components to be treated as separate contracts to reflect the substance of the transaction.
In determining whether the components of an insurance contract should be recognised and measured separately, the Group and the Company consider whether there is interdependence between the different risks covered, whether the components of an insurance contract extinguish independently of each other and whether the components can be priced and sold separately.
When the Group and the Company enter into one legal contract with different insurance components that operate independently of each other, the insurance components are recognised and measured separately using IFRS 17. The Group has identified non-life insurance contracts where the insurance components are distinguishable by homogeneous risk groups if they meet the conditions for distinguishing the components of insurance contracts. The Group has also identified life insurance contracts where the insurance components may be separated according to different insurance and economic risks if the insurance contract as a whole does not present the economic impact in a credible way.
Portfolios of insurance contracts comprise contracts subject to similar risks and managed together. Contracts within the same product line, as defined for management purposes, are expected to be subject to similar risks and are therefore grouped together in a single portfolio. Where contracts are issued by different Group companies, they are managed separately by each company and are therefore grouped into different portfolios. If the Group and the Company consider that the legal form of insurance contracts does not reflect their economic substance, homogeneous groups of risks arising from those insurance contracts are considered in the construction of portfolios.
Individual portfolios are divided into groups of insurance contracts according to their profitability and the year in which the contract was written. Contracts issued more than one year apart should not be included in the same group of insurance contracts.
Portfolios are categorised by profitability as:
The determination of whether a contract or group of contracts is onerous is based on expectations at the date of initial recognition. The Group determines the appropriate level at which reasonable and supportable information is available to assess whether contracts are onerous at initial recognition and whether it is probable that contracts that are not onerous at initial recognition will become onerous subsequently. In the absence of such information, the Group assesses each contract individually.
Insurance contracts are classified into groups of insurance contracts on initial recognition and are not subsequently reassessed.
Reinsurance contracts are divided into segments in the same way as insurance contracts, except that a reinsurance contract cannot be unprofitable (in which case there is a net gain or net loss on initial recognition). In identifying groups of reinsurance contracts, the Group and the Company apply the rule that each reinsurance contract issued or held is a separate portfolio because of the different characteristics of the individual reinsurance contracts.
For contracts that are measured using the premium allocation approach (PAA), the Group and the Company determine that the contracts are not onerous unless facts and circumstances indicate otherwise. If the facts and circumstances indicate that certain contracts are onerous on initial recognition, the Group performs a quantitative assessment. If the assessment indicates that such contracts are onerous, the Group classifies such contracts as onerous and increases the liability for remaining coverage by the amount of the identified loss, which is recognised immediately in profit or loss.
All IFRS 17 measurements are made at the level of groups of insurance contracts.
• the beginning of the coverage period of the group of contracts;
• the date when the first payment from a policyholder in the group becomes due; and
• for a group of onerous contracts, when the group becomes onerous.
A group of insurance contracts is recognised upon recognition of the first contract that is part of the group. An insurance contract is included in a group of insurance contracts based on portfolio, annual cohort and profitability when it meets the recognition criteria in paragraph 1 of this section.
Reinsurance contracts held by the Group and the Company are recognised on the earlier of the following dates:
• the beginning of the coverage period of a group of reinsurance contracts held by the Group or the Company; and
• the date on which the underlying group of onerous insurance contracts is recognised if, on or before that date, a related reinsurance contract from the group of reinsurance contracts held by the Group and the Company has been entered into.
Notwithstanding the above provision, the recognition is delayed for a reinsurance contract that provides proportionate coverage until the date on which any underlying insurance contract is initially recognised if that date is later than the beginning of the coverage period of the reinsurance contract.
Insurance and reinsurance contracts acquired in a transfer of contracts or a business combination are recognised on the date of the transaction.
A group of insurance contracts is measured by including all future cash flows that are within the boundary of the insurance contracts in the group.
In determining which cash flows are within the contractual boundary, the Group and the Company consider the substantive rights and obligations arising under the insurance contracts, laws and regulations.
Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the Group or the Company can compel the policyholder to pay the premiums or in which the Group or the Company have a substantive obligation to provide services to the policyholder under the insurance contract.
Cash flows are within the boundary of a reinsurance contract if the contract holder can require the reinsurer to provide cover and other services or if there is a material obligation on the contract holder to pay a reinsurance premium to the reinsurer.
Liabilities or assets that are outside the boundary of recognised insurance contracts and relate to future contracts are shown separately in the statement of financial position.
In estimating the expected future cash flows, the Group and the Company use their judgement about the future behaviour of policyholders in exercising the options available to them, including the potential for surrender values to be paid.
The Group and the Company assess the contractual boundary at initial recognition and at each subsequent reporting date to incorporate the effect of changes in circumstances on the substantive rights and obligations.
All IFRS 17 measurements are made at the level of groups of insurance contracts.
The basic method of measuring insurance and reinsurance contracts under IFRS 17 is the general measurement model or building block approach (BBA). The standard also permits the use of a simplified measurement approach in some cases called the premium allocation approach (PAA). The standard requires the mandatory use of the variable fee approach (VFA) in the case of a group of insurance contracts with direct participation features and when the application criteria specified in the standard are met. Reinsurance contracts cannot be valued using the variable fee approach. The Group companies use all of the above approaches to value insurance and reinsurance contracts. The Company uses the general measurement model and, to a lesser extent, the premium allocation approach.
On initial recognition, a group of insurance contracts is measured as the sum of:
• fulfilment cash flows, which comprise:
• the contractual service margin (CSM).
Estimates of expected cash flows represent an explicit, unbiased and probability-weighted estimate of future cash flows adjusted for the time value of money and associated financial risks. They include cash flows attributable to the fulfilment of existing insurance contracts and also expectations about the future behaviour of the insured persons.
Estimates of future cash flows reflect conditions existing at the measurement date, including assumptions at that date about the future.
Estimates of future cash flows are primarily determined using deterministic forecasting models, with stochastic techniques used additionally to model future cash flows for certain groups of contracts. The estimates of future cash flows are used to determine the expected value, or probability-weighted mean of the full range of possible outcomes, considering all reasonable and supportable information available at the reporting date. Potential impacts related to sustainability and climate change are also appropriately considered when estimating future cash flows.
Cash flows within the insurance contract boundary are those that relate directly to the fulfilment of the contract, including cash flows for which the entity has discretion over the amount or timing.
Cash flows within the contract boundary of an insurance contract include:
transaction-based taxes that arise directly from existing insurance contracts.
Cash flows also include:
Cash flows within the contract boundary include both fixed and variable administrative expenses that are directly attributable to the fulfilment of insurance contracts. Expenses that cannot be directly allocated to an insurance policy are allocated to groups of insurance contracts using methods that are systematic, rational and consistently applied to all expenses that have similar characteristics. Expenses that are not attributable to or not strictly necessary for the fulfilment of insurance contracts are directly recognised in the income statement outside the insurance service result when incurred.
Estimates of expected cash flows are adjusted for the time value of money and the financial risk associated with those cash flows, using a risk-free interest rate curve plus a liquidity premium to discount future cash flows.
Appropriate discount rates are calculated using the bottom-up approach. A risk-free interest rate in the form of a swap curve plus a liquidity premium is used as the discount rate in estimating future cash flows. The liquidity premium is determined on the basis of yield data for AAA-rated covered bonds and a multiple of the liquidity premium. The multiple of the liquidity premium is determined by taking into account the characteristics of the groups of insurance contracts. Cash flows that vary based on the returns on the contractually defined set of assets are discounted using risk-neutral measurement techniques. Discount interest rates are set at each balance sheet date.
The risk adjustment for non-financial risk is the compensation the Group and the Company require for bearing the uncertainty related to the amount and timing of the cash flows that arise from non-financial risk as they fulfil the contractual agreements. The risks covered by the risk adjustment for non-financial risk are insurance risk (including climate change risk) and other non-financial risks such as lapse risk and expense risk.
The risk adjustment for non-financial risk is thus the compensation that the Group and the Company would require to make them indifferent between:
The Group and the Company assess the risk adjustment for non-financial risk using the confidence level technique (VaR and TVaR) to determine the maximum possible loss at a given confidence interval. The Group and the Company take into account a confidence interval of 75% to 85% for VaR and 40% for TVaR.
Changes in the risk adjustment for non-financial risk are fully reflected in the income statement.
The contractual service margin (CSM) represents the unearned profit arising from insurance contracts that the Group and the Company will recognise as they provide insurance services under these contracts in the future. The contractual service margin is recognised when the net present value of future cash flows is positive (inflows are expected to exceed outflows) and is determined as the excess of cash inflows over cash outflows, less an adjustment for non-financial risk. A contractual service margin is established to prevent the recognition of a profit before it is realised and is released over the life of the insurance contract.
In the case of a transfer of insurance contracts or a business combination, the calculation uses the consideration received or paid at the acquisition date as a proxy for the premiums received.
For identified future losses arising out of insurance contracts, when the net present value of future cash flows is negative (more outflows than inflows are expected), the loss is recognised in the current period. For onerous (non-profitable) groups of contracts, the loss component is shown in the liability for remaining coverage, while the loss is shown immediately in the income statement.
The carrying amount of a group of insurance contracts at the end of each reporting period is the sum of:
When calculating assets and liabilities under insurance contracts on the balance sheet date, the company uses current estimates of future cash flows, current discount rates and current estimates of the risk adjustment for non-financial risk. Changes in these components affect the following items:
| Change in assumptions | Impact |
|---|---|
| Changes related to future service | Change in CSM |
| Changes related to current or past service | Change in the insurance service result for the financial year |
| The effects of the time value of money, financial risk and changes thereof on estimated future cash flows | Change in finance income or expense and change in other comprehensive income |
After initial recognition, the contractual service margin for each group of insurance contracts is remeasured on the balance sheet date.
For insurance contracts without direct participation features, the carrying amount of the contractual service margin of a group of contracts on measurement at the reporting date equals the carrying amount at the start of the reporting period adjusted for:
the effect of any currency exchange differences on the contractual service margin; and
- the amount recognised as insurance revenue due to the transfer of insurance contract services during the period, determined by the allocation of the contractual service margin remaining at the end of the reporting period.
The changes in fulfilment cash flows relating to future service consist of:
The amount of the contractual service margin for a group of insurance contracts is recognised in profit or loss in each period to reflect the insurance contract services provided under the group of insurance contracts during that period. The amount is determined by:
The present value of changes in fulfilment cash flows for the purpose of calculating the contractual service margin is measured using locked-in discount rates at the time of recognition. In some cases, these discount rates are averaged when contracts are recognised over successive reporting periods.
Insurance contracts with direct participation features are insurance contracts that, in addition to providing insurance cover, also provide the policyholder with investment services provided by the Group.
For insurance contracts with direct participation features, the carrying amount of the contractual service margin of a group of contracts at the end of the reporting period equals the carrying amount at the beginning of the reporting period adjusted by the amounts set out below.
the changes in the fulfilment cash flows relating to future service, except to the extent that:
- - such increases in the fulfilment cash flows exceed the carrying amount of the contractual service margin, resulting in a loss; or
- such decreases in the fulfilment cash flows are allocated to the loss component of the liability for remaining coverage;
the effect of any currency exchange differences arising on the contractual service margin; and
- the amount recognised as insurance revenue because of the transfer of insurance contract services in the period.
The majority of non-life business is measured using the premium allocation approach when the coverage period of a group of contracts is less than 12 months or the simplification is expected to be a reasonable approximation of the valuation results under the building block approach.
Upon initial recognition, the carrying amount of the liability for remaining coverage is:
The carrying amount of the liability at the end of each subsequent reporting period is the carrying amount at the beginning of the reporting period:
If, at any time during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, to the extent that the fulfilment cash flows exceed the carrying amount, the Group and the Company recognise a loss in profit or loss and increase the liability for remaining coverage.
If the PAA is used, the Group and the Company make no adjustments for the time value of money and the effect of financial risk, as the period between the premium due date and the provision of insurance services is expected to be no more than one year.
Liability for incurred claims represents the expected cash flows for claims and related costs that have already been incurred and have not yet been paid. The liability for incurred claims includes claims incurred but not yet reported (IBNR) and claims reported but not yet settled (RBNS). Even when the liability for remaining coverage is measured using the PAA, the liabilities for claims incurred are valued using the general measurement approach (BBA) and the future cash flows are adjusted for the time value of money and the effect of financial risk.
The valuation methods for reinsurance contracts held by the Group and the Company (referred to in this section as reinsurance contracts) are the same as for insurance contracts, using consistent assumptions in the valuation of insurance and reinsurance contracts covering those insurance contracts, to the extent possible. In this case, the future cash flows in the valuation of reinsurance contracts are increased by a cash flow representing the effect of the reinsurer default risk, including the effects of collateral and litigation losses.
The risk adjustment for non-financial risk for reinsurance contracts represents the amount of risk being transferred from the insurer to the reinsurer.
In the valuation of reinsurance contracts, the unearned profit represented by the contractual service margin is replaced by the net gain or loss on the purchase of reinsurance. The net gain or loss on the initial recognition of reinsurance contracts is measured at:
If the net cost of purchasing reinsurance coverage relates to events that occurred before the purchase of the group of reinsurance contracts, the Group and the Company recognise this cost immediately as an expense in profit or loss.
The contractual service margin at the end of each reporting period for a group of reinsurance contracts is determined as the contractual service margin at the beginning of the reporting period, adjusted for:
Changes in fulfilment cash flows resulting from changes in the reinsurer's default risk are unrelated to future service and consequently do not adjust the CSM.
The Group and the Company adjust the contractual service margin of a group of reinsurance contracts and, consequently, recognise revenue when they recognise an onerous group of insurance contracts underlying the reinsurance contracts or when they add onerous insurance contracts underlying the reinsurance contracts to the group (this is the so-called loss-recovery component of an asset for remaining coverage of a group of reinsurance contracts). This adjustment is made only if the reinsurance contract has already been written at the time the loss component of the liability for remaining coverage on the onerous insurance contracts is recognised.
The amount of this adjustment is equal to the product of the recognised loss on the gross business and the share of the claims covered by that reinsurance contract on the insurance contracts from which that loss arises.
The Group and the Company establish (or adjust) a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts depicting the recovery of losses recognised in accordance with the above paragraphs. The loss-recovery component determines the amounts that are recognised in profit or loss as reversals of recoveries of losses from reinsurance contracts and are consequently excluded from the premiums paid to the reinsurer.
The loss-recovery component is adjusted to reflect changes in the loss component of an onerous group of underlying insurance contracts. The carrying amount of the loss-recovery component must not exceed the portion of the carrying amount of the loss component of the onerous group of underlying insurance contracts that the Company expects to recover from the group of reinsurance contracts.
The PAA approach may also be used to measure reinsurance contracts if:
The criterion in the first bullet point above is not met if, at the inception of a group of reinsurance contracts, the Group and the Company expect significant variability in the fulfilment cash flows that would affect the measurement of the liability for remaining coverage during the period before a claim is incurred.
If the PAA approach is used, the carrying amount of the asset is adjusted for the remaining coverage in the event that a loss recovery component is created.
Insurance revenue comprises the provision of services, during the reporting period, arising from a group of insurance contracts, specifically for an amount that reflects the consideration to which the Group and the Company expect to be entitled in exchange for the services provided. Insurance service expenses represent incurred claims, expenses and other expenses related to insurance services incurred in the reporting period. Neither insurance revenue nor insurance service expenses include an investment component.
The total amount of insurance revenue for each group of insurance contracts is equal to the premiums paid, adjusted for a financing effect and excluding any investment components.
The allocation of insurance revenue by period is determined by the amount of insurance services provided during the reporting period, which includes:
When the Group and the Company provide insurance services during a period, they reduce the liability for the remaining coverage and recognise insurance revenue during the period. The reduction in the liability for remaining coverage does not include changes that are not related to the provision of insurance services, such as:
Consequently, insurance revenue for the period can also be analysed as the sum total of the changes in the liability for remaining coverage during the period that relates to services for which the Group and the Company expect to receive consideration. Those changes are:
Insurance revenue related to insurance acquisition cash flows are determined by allocating the portion of the premiums that relate to recovering those cash flows to each reporting period in a systematic way on the basis of the passage of time. The same amount is recognised as insurance service expenses.
If the simplified premium allocation approach (PAA) is used to measure liabilities for future coverage, the insurance revenue is the amount of the expected premiums, excluding any investment component relating to the reporting period. Premiums are allocated by period evenly over the duration of the cover or, in the case of unevenly spread risk, over the expected period of incurrence of the insurance service expense (decrease in the amount of insurance cover for credit insurance, increase in the amount of insurance cover for construction and erection insurance and reinsurance contracts).
Finance income or expenses from insurance and reinsurance contracts comprise:
For all its groups of insurance contracts without direct participation features, the companies allocate finance income and expense between profit or loss and the statement of other comprehensive income (OCI). The companies include in profit or loss an amount determined by a systematic allocation of the expected total finance income or expenses from insurance contracts over the duration of the group of insurance contracts. A systematic allocation is an allocation of the total expected finance income or expenses of a group of insurance contracts over the duration of the group that:
For groups of insurance contracts without direct participation features for which changes in assumptions that relate to financial risk do not have a substantial effect on the amounts paid to the policyholder, the systematic allocation is determined using the discount rates at the date of initial recognition of the group of insurance contracts, or at the date of loss in the case of the PAA approach.
For groups of insurance contracts without direct participation features for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to the policyholders:
For groups of insurance contracts with direct participation features for which the company holds the underlying items, the company disaggregates insurance finance income or expenses between the statement of profit or loss and other comprehensive income for the period to include in profit or loss an amount that eliminates accounting mismatches with income or expenses included in profit or loss on the underlying items held (the financial expenses or income from insurance contracts included in profit or loss exactly matches the income or expense included in profit or loss for the underlying items, resulting in the net of the separately presented items being nil). The company includes in other comprehensive income the difference between the finance income or expenses from insurance contracts measured on the basis set out above and the total insurance finance income or expenses for the period.
Employee benefits include severance pay upon retirement and jubilee benefits. Provisions for employee benefits are the net present value of the Group’s future liabilities proportionate to the years of service in the Group (the projected unit credit method). Pursuant to IAS 19 “Employee benefits” actuarial gains and losses arising on re-measurement of net liabilities for severance pay upon retirement are recognised in other comprehensive income.
These provisions are calculated based on personal data of employees: date of birth, date of commencement of employment in the Group, anticipated retirement and salary. For each Group company, the amounts of severance pay upon retirement and jubilee benefits are in accordance with local legislations, employment contracts and other applicable regulations. Expected payouts also include tax liabilities where payments exceed statutory non-taxable amounts.
The probability of an employee staying with the Group includes both the probability of death and the probability of termination of employment relationship. Assumptions relating to future increases in salaries, severance pay upon retirement and jubilee benefits, as well as those relating to employee turnover depend on developments in individual markets and individual Group companies. The same term structure of risk-free interest rates is used for discounting as that in the capital adequacy calculation under Solvency II.
Other financial liabilities mainly include unpaid dividends payable from previous years and current interest and loan liabilities.
Current tax liabilities are recognised at the amount of the current tax liability for the financial year not yet paid.
Liabilities are initially recognised at amounts recorded in the relevant documents. Subsequently, they are increased or decreased in line with documents, and reduced through payments. Other liabilities include amounts due to employees and suppliers and other current liabilities (accrued expenses).
The Company discloses investment income and expenses by type of income and expense:
Other operating income includes income:
Revenue is recognised when the customer has taken control of the goods or has received the benefits from the services rendered. Sales revenue does not include any charges paid upon purchase or sale. It is included in “other income” in the income statement and relates either to the pensions and asset management or the “other” operating segments. This revenue is not multi-year in nature, is recognised on an accrual basis in the financial year and presented under note 16.8.40.
Other operating expenses include:
Other expenses are recognised in the income statement at the time the service is rendered.
Income tax expense for the year comprises current and deferred tax. Current income tax is presented in the income statement, except for the portion relating to the items presented in equity; deferred tax for these items is also presented in equity. Current tax is payable on the taxable profit for the year using the tax rates enacted by the date of the statement of financial position, as well as on any adjustments to tax liabilities of prior periods. Deferred tax is recognised using the statement of financial position method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The deferred tax amount is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using the tax rates effective on the date of the statement of financial position. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
The Group income tax expense has been determined in accordance with the requirements of each member’s local legislation.
Operating segments as disclosed and monitored were determined based on the different activities carried out in the Group. Segments were formed through the aggregation of operations of companies that generate revenue and expenses, including revenue and expenses arising from intra-group transactions, based on similar services provided by companies (features of insurance products, market networks, and the circumstances in which companies operate).
The operating segments are reinsurance (reinsurance business), non-life (non-life insurance business, broken down into EU and non-EU), life (life insurance business, broken down into EU and non-EU), pensions and asset management (pension insurance business in Slovenia and North Macedonia, and fund management) and the “other” segment (assistance services associated with motor, homeowners and health insurance business). In the following, more detail is provided on how the companies are included in operating segments.
The performance of these segments is monitored using a variety of indicators, with IFRS net profit being a common performance indicator for all segments. The management board monitors performance by segment to the level of insurance and reinsurance service results, net investment income and aggregated business results, amounts of assets, equity and insurance and reinsurance contract liabilities on a quarterly basis.
The operations of the Sava Insurance Group are organised into the following operating segments: reinsurance, non-life (insurance), life (insurance), pensions and asset management, and the “other” segment. The non-life and life segments are further subdivided geographically into EU and non-EU.
The following companies are included in the individual operating segments:
The following reallocations were made in the consolidated income statement:
The following reclassifications were made in the consolidated statement of financial position:
| EUR | Reinsurance | Non-life, EU | Non-life, non-EU | Life, EU | Life, non-EU | Pensions and asset management | Other | Total |
|---|---|---|---|---|---|---|---|---|
| 31 December 2023 |
| 4,674,935 | 13,627,701 | 9,325,953 | 4,428,761 | 233,499 | 28,757,254 | 4,100,728 | 65,148,831 |
|---|---|---|---|---|---|---|---|
| 2,675,158 | 38,886,005 | 11,321,042 | 5,249,059 | 1,060,243 | 417,230 | 78,061 | 59,686,798 |
|---|---|---|---|---|---|---|---|
| 7,582,167 | 11,730,934 | 5,544,277 | 32,900 | 0 | 0 | 0 | 24,890,278 |
|---|---|---|---|---|---|---|---|
| 209,205 | 3,915,031 | 3,133,713 | 1,116,305 | 154,707 | 44,437 | 0 | 8,573,398 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 23,834,620 | 23,834,620 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 23,834,620 | 23,834,620 |
|---|---|---|---|---|---|---|---|
| 5,087,419 | 3,548,166 | 0 | -1,299,657 | 0 | -751,528 | 0 | 6,584,400 |
|---|---|---|---|---|---|---|---|
| 237,893,483 | 535,119,866 | 89,686,313 | 1,066,267,612 | 30,860,472 | 52,704,887 | 0 | 2,012,532,633 |
|---|---|---|---|---|---|---|---|
| 210,351,892 | 460,487,600 | 63,847,713 | 492,306,747 | 18,524,902 | 30,628,191 | 0 | 1,276,147,045 |
|---|---|---|---|---|---|---|---|
| 2,344,960 | 4,409,489 |
|---|---|
| Subordinated liabilities | 0 | 0 | 0 | 0 | 0 | 74,987,535 | 74,987,535 | |
|---|---|---|---|---|---|---|---|---|
| Deferred tax liabilities | 0 | 54,689 | 578,579 | 86,516 | 696,551 | 1,784,777 | 235,479 | 3,436,591 |
| Insurance contract liabilities | 163,562,295 | 463,154,147 | 64,660,233 | 917,651,804 | 17,396,207 | 24,597,561 | 0 | 1,651,022,247 |
| Reinsurance contract liabilities | 287,726 | 103,984 | 942,342 | 307,990 | 0 | 0 | 0 | 1,642,043 |
| Investment contract liabilities | 0 | 0 | 0 | 0 | 0 | 180,437,695 | 0 | 180,437,695 |
| Provisions | 419,660 | 5,619,443 | 308,683 | 1,186,602 | 16,617 | 462,626 | 60,624 | 8,074,255 |
| Lease liability | 210,798 | 4,096,675 | 3,212,030 | 1,116,412 | 156,186 | 52,636 | 0 | 8,844,737 |
| Other financial liabilities | 0 | 7,154 | 728,545 | 0 | 1,386 | 0 |
| EUR | Reinsurance | Non-life, EU | Non-life, non-EU | Life, EU | Life, non-EU | Pensions and asset management | Other | Total |
|---|---|---|---|---|---|---|---|---|
| ASSETS | 4,068,385 | 16,900,619 | 9,245,044 | 2,874,285 | 118,787 | 29,879,226 | 2,808,946 | 65,895,292 |
| Property, plant and equipment | 2,553,946 | 40,929,091 | 12,634,139 |
737,085
4,718,067
175,518,538
585,663,613
| Investment property | 4,872,184 | 1,058,434 | 340,235 | 47,597 | 62,435,626 |
|---|---|---|---|---|---|
| Right-of-use assets | 7,721,692 | 11,839,443 | 3,200,383 | 34,241 | 0 |
| Investments in associates and joint ventures | 22,795,759 | ||||
| Investments in associates accounted for using equity method | 0 | 0 | 0 | 0 | 21,856,109 |
| Deferred tax assets | 0 | -203,681 | 0 | 220,746 | 0 |
| Financial investments measured at | 223,493,038 | ||||
| Fair value through other comprehensive income | 194,080,958 | 384,326,920 | 57,536,477 | 481,149,244 | 16,691,460 |
| Amortised cost | 1,963,606 | 2,166,142 | 17,023,580 | 21,168,516 | 8,615,831 |
| Fair value through profit or loss | 27,448,474 | 70,433,062 | 3,820,188 | 448,253,331 | -17,354 |
| Investment contract assets | 0 |
| Insurance contract assets | 166,374,119 | 0 | 2,945,467 | 3,959,721 | 136,537 | 13,293 | 83,322 | 0 | 0 | 7,138,340 |
|---|---|---|---|---|---|---|---|---|---|---|
| Reinsurance contract assets | 22,018,612 | 43,582,758 | 2,291,047 | 241,224 | 0 | 0 | 0 | 68,133,642 | ||
| Current tax assets | 49,594 | 3,302,945 | 342,733 | -284,100 | 1,683 | 0 | 0 | 3,412,855 | ||
| Trade and other receivables | -113,541 | 3,758,200 | 2,806,668 | 2,023,980 | 609,725 | 972,915 | 2,225,026 | 12,282,973 | ||
| Non-current assets held for sale | 0 | 380,282 | 160,636 | 0 | 0 | 450,885 | 0 | 991,803 | ||
| Cash and cash equivalents | 11,655,827 | 40,864,333 | 4,424,791 | 26,894,444 | 1,884,243 | 7,001,632 | 498,361 | 93,223,631 | ||
| Other assets | 699,783 | 1,336,963 | 510,869 | 289,128 | 36,029 | 588,623 | 563,888 | 4,025,283 |
275,340,865
628,128,653
116,389,266
987,971,545
29,106,558
247,200,914
28,002,447
2,312,140,248
| 0 | 0 | 0 | 0 | 0 | 0 | 74,924,356 | 74,924,356 |
|---|---|---|---|---|---|---|---|
| -3,032,251 | -1,554,331 | 336,866 | 4,342,765 | 342,266 | 2,375,985 | 0 | 2,811,300 |
|---|---|---|---|---|---|---|---|
| 168,897,801 | 405,704,423 | 55,550,665 | 819,181,500 | 14,335,729 | 20,645,040 | 0 | 1,484,315,158 |
|---|---|---|---|---|---|---|---|
| 111,680 | 79,071 | 518,136 | 342,728 | 0 | 0 | 0 | 1,051,614 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 166,197,363 | 0 | 166,197,363 |
|---|---|---|---|---|---|---|---|
| 392,640 | 5,489,589 | 240,037 | 1,155,805 | 11,838 | 625,968 | 57,577 | 7,973,454 |
|---|---|---|---|---|---|---|---|
| 246,929 | 4,738,721 | 2,283,198 | 221,029 | 28,680 | 131,014 | 7,615 | 7,657,186 |
|---|---|---|---|---|---|---|---|
| 0 | -6 | 547,997 | 0 | 585 | 0 | 0 | 548,576 |
|---|---|---|---|---|---|---|---|
| 45,414 | 0 | 842,323 | 448,202 | 26,762 | 159,258 | 33,033 | 1,554,992 |
|---|---|---|---|---|---|---|---|
| 1,054,118 | 20,889,215 | 3,046,611 | 2,855,696 | 1,076,482 | 1,407,138 |
|---|---|---|---|---|---|
| EUR | Reinsurance | Non-life, EU | Non-life, non-EU | Life, EU | Life, non-EU | Pensions and asset management | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Insurance revenue | 104,029,407 | 436,996,472 | 89,711,654 | 59,872,919 | 6,530,594 | 421,765 | 0 | 697,562,811 |
| Insurance service expenses | -81,494,383 | -445,956,710 | -83,631,610 | -40,909,530 | -4,820,572 | -312,713 | 0 | -657,125,518 |
| – Claims incurred | -71,430,181 | -324,341,925 | -52,147,491 | -15,502,210 | -1,966,927 | -85,420 | 0 | -465,474,154 |
| – Operating expenses | -10,318,051 | -118,758,015 | -31,575,713 | -25,752,177 | -3,047,991 | -113,073 | 0 | -189,565,020 |
| – Unprofitable contracts | 253,849 | -2,856,770 | 91,594 |
167,716,331
531,463,677
| Result before reinsurance | 344,857 | 194,346 | -114,220 | 0 | -2,086,344 | -8,960,238 | ||
|---|---|---|---|---|---|---|---|---|
| Reinsurance service result | 6,080,044 | 18,963,389 | 1,710,022 | 22,535,024 | 109,052 | 0 | 40,437,293 | |
| Insurance service result | 906,976 | 41,486,560 | 885,641 | -238,707 | 0 | 0 | 0 | 43,040,469 |
| Net investment result | 23,442,000 | 32,526,322 | 6,965,685 | 18,724,682 | 1,710,022 | 109,052 | 0 | 83,477,762 |
| Net foreign exchange gains/losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Finance result from insurance contracts | 5,521,148 | 7,882,690 | 3,094,209 | 9,103,691 | 955,738 | 1,365,801 | 0 | 27,923,277 |
| Finance result | -5,210,202 | -3,070,764 | -629,162 | -3,302,541 | -400,071 | -691,457 | 0 | -13,304,198 |
| Income from non-insurance activities | 1,270,540 | -79,847 | -8,803 | -1,520 | 14,640 | -2,505 | 0 | 1,192,505 |
| 1,581,486 | 4,732,079 | 2,456,244 | 5,799,629 | 570,307 | 671,839 | 0 | 15,811,584 |
| EUR | Reinsurance | Non-life, EU | Non-life, non-EU | Life, EU | Life, non-EU | Pensions and asset management | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Insurance revenue | 92,799,955 | 380,796,268 | 73,586,592 | 56,462,308 | 5,033,876 | 308,794 | 0 | 608,987,793 |
Other expenses
| -3,693,151 | -16,349,800 | -6,237,092 | -5,161,413 | -492,069 | -13,370,630 | -5,710,391 | -51,014,545 |
|---|---|---|---|---|---|---|---|
Income from investments in subsidiaries and associates
| 0 | 3,754 | 0 | 0 | 0 | 0 | 2,282,455 | 2,286,209 |
|---|---|---|---|---|---|---|---|
Net other operating income or expenses
| -631,045 | 4,411,830 | 2,603,285 | -507,641 | -20,696 | 516,535 | -2,715,827 | 3,656,441 |
|---|---|---|---|---|---|---|---|
Profit or loss before tax
| 20,699,290 | 25,324,185 | 5,788,122 | 18,855,257 | 1,767,563 | 7,516,206 | -337,270 | 79,613,354 |
|---|---|---|---|---|---|---|---|
Income tax expense
-14,956,182
Net profit or loss for the period
| 64,657,172 | 224 |
|---|---|
| Amount | |
|---|---|
| – Claims incurred | -61,697,514 |
| -255,758,019 | |
| -37,837,257 | |
| -11,447,246 | |
| -1,503,214 | |
| -66,524 | |
| 0 | |
| -368,309,774 | |
| – Operating expenses | -8,703,623 |
| -102,624,831 | |
| -27,103,703 | |
| -23,970,652 | |
| -2,532,069 | |
| -96,158 | |
| 0 | |
| -165,031,036 | |
| – Unprofitable contracts | 83,727 |
| -2,185,670 | |
| -20,985 | |
| -1,712,015 | |
| -353,756 | |
| 18,959 | |
| 0 | |
| -4,169,740 |
| Amount | |
|---|---|
| 20,227,748 | |
| 8,624,647 | |
| 19,332,395 | |
| 644,837 | |
| 22,482,545 | |
| 165,071 | |
| 0 | |
| 71,477,243 |
| Amount | |
|---|---|
| 168,828 | |
| 7,537,611 | |
| -2,620,139 | |
| -490,126 | |
| 0 | |
| 0 | |
| 0 | |
| 4,596,174 |
| Amount | |
|---|---|
| 22,651,373 | |
| 27,765,359 | |
| 6,004,508 | |
| 18,842,269 | |
| 644,837 | |
| 165,071 | |
| 0 | |
| 76,073,417 |
| Amount | |
|---|---|
| 1,545,065 | |
| -562,285 | |
| 1,962,550 | |
| 3,709,640 | |
| 750,448 | |
| -869,358 | |
| 0 | |
| 6,536,061 |
| Amount | |
|---|---|
| -4,386,386 | |
| -930,698 | |
| -378,489 | |
| -2,974,900 | |
| -267,571 | |
| -202,813 |
-9,140,857
| 1,942,705 | -28,341 | -22,079 | -15,257 | -25,577 | -14,512 | 0 | 1,836,939 |
|---|---|---|---|---|---|---|---|
| -898,616 | -1,521,324 | 1,561,983 | 719,483 | 457,300 | -1,086,683 | 0 | -767,857 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 3,212 | 0 | 0 |
|---|---|---|---|---|
| 17,978,588 | 3,422,717 | 21,404,517 | |||||
|---|---|---|---|---|---|---|---|
| -2,908,447 | -14,842,893 | -5,742,288 | -5,092,506 | -418,355 | -11,881,741 | -3,496,453 | -44,382,684 |
| 0 | 0 | 0 | 0 | 0 | 0 | 2,279,735 | 2,279,735 |
|---|---|---|---|---|---|---|---|
| -474,542 | 3,661,593 | 4,117,895 | -622,602 | 385,306 | -306,868 | -2,865,865 | 3,894,917 |
|---|---|---|---|---|---|---|---|
| 18,369,768 | 15,062,734 | 5,945,310 | 13,846,644 | 1,069,088 | 4,868,367 | -659,866 | 58,502,045 |
|---|---|---|---|---|---|---|---|
-11,578,604
| EUR | Reinsurance | Non-life | Life | Pensions | Other |
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Insurance service result before reinsurance | 29,221,815 | 4,245,142 | 346,830 | 90,102 | -233,171 |
| Net result from reinsurance contracts held | - | - | -32,466,249 | -5,409,109 | 341,809 |
| Net investment income/expenses | -72,248 | -63,801 | -289,315 | -82,232 | - |
| Net insurance finance income or expenses | 1,073,695 | 832,641 | -1,157,607 | -883,906 | 776,640 |
| Other operating income and expenses | -30,661,000 | -50,822,064 | 1,226,967 | 2,045,152 | -1,336,470 |
| EUR | Reinsurance | Non-life insurance | Life insurance | Pensions | Other | Total |
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2023 |
| 2022 | 2023 | |
|---|---|---|
| Investments in intangible assets | 973,700 | 1,118,179 |
| 1,892,653 | 4,278,034 | |
| 367,356 | 249,925 | |
| 97,047 | 275,363 | |
| 1,357,106 | 8,537 | |
| 4,687,862 | 5,930,038 |
| 2022 | 2023 | |
|---|---|---|
| Investments in property, plant and equipment | 424,457 | 605,833 |
| 3,390,832 | 11,707,585 | |
| 770,292 | 2,489,402 | |
| 251,666 | 14,736 | |
| 54,136 | 35,419 | |
| 4,891,383 | 14,852,975 |
The accounting policies adopted by the Group and the Company in preparing their financial statements are consistent with those of the previous financial year, except for the following new or amended IFRSs adopted for annual periods beginning on or after 1 January 2023. The impact of the adoption of IFRS 17 and IFRS 9 is described in section 16.6 “Transition to the new standards IFRS 17 and IFRS 9”.
In the current year, the Group and the Company have applied a number of amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) and adopted by the EU that are mandatorily effective for reporting period that begins on or after 1 January 2023. The adoption of these amendments has not had any material impact to the financial statements of the Group or the Company, except for the impact of the new standard IFRS 17 “Insurance Contracts”. For more information on the impact of this standard on the performance of the Group and the Company, refer to section 16.6 “Transition to the new standards IFRS 17 and IFRS 9”.
• IFRS 17 “Insurance Contracts” issued by IASB on 18 May 2017. The new standard requires insurance liabilities to be measured at a current fulfilment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 “Insurance Contracts” and related interpretations while applied. Amendments to IFRS 17 “Insurance Contracts” issued by IASB on 25 June 2020 defer the date of initial application of IFRS 17 by two years to annual periods beginning on or after 1 January 2023. Additionally, the amendments issued on 25 June 2020 introduce simplifications and clarifications of some requirements in the Standard and provide additional reliefs when applying IFRS 17 for the first time.
• Amendments to IFRS 17 “Insurance contracts” – Initial Application of IFRS 17 and IFRS 9 – Comparative Information issued by IASB on 9 December 2021. It is a narrow-scope amendment to the transition requirements of IFRS 17 for entities that first apply IFRS 17 and IFRS 9 at the same time.
Disclosure of Accounting Policies issued by IASB on 12 February 2021. The amendments require entities to disclose their material information on accounting policies rather than their significant accounting policies. They provide guidance and examples to help preparers decide which accounting policies to disclose in their financial statements.
Definition of Accounting Estimates issued by IASB on 12 February 2021. The amendments focus on accounting estimates and provide guidance on how to distinguish between accounting policies and accounting estimates.
Amendments to IAS 12 “Income Taxes” – Deferred Tax related to Assets and Liabilities arising from a Single Transaction issued by IASB on 6 May 2021. According to amendments, the initial recognition exemption does not apply to transactions in which both deductible and taxable temporary differences arise on initial recognition that result in the recognition of equal deferred tax assets and liabilities.
Amendments to IAS 12 “Income Taxes” – International Tax Reform — Pillar Two Model Rules issued by IASB on 23 May 2023. The amendments introduced a temporary exception to the accounting for deferred taxes arising from jurisdictions implementing the global tax rules and disclosure requirements about company’s exposure to income taxes arising from the reform, particularly before legislation implementing the rules is in effect.
The exception in the amendments to IAS 12 for an entity not to recognise and disclose information about deferred tax assets and liabilities under the IASB’s Pillar 2 relating to income taxes applies immediately after the amendments are issued and retrospectively in accordance with IAS 8. The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 January 2023.
At Group level, a task force has been set up in 2023 to implement the new tax legislation. The task force has been set up to study the changes and will be responsible for their implementation. As the legislation introduces significant changes, we estimate that it will have an impact on the Group’s operations, but it is not yet possible to quantify the impact on individual items in the financial statements.
At the date of authorisation of these financial statements, the Group and the Company have not applied the following revised IFRS Accounting Standards that have been issued by IASB and adopted by EU but are not yet effective:
Amendments to IFRS 16 “Leases” – Lease Liability in a Sale and Leaseback (effective for annual periods beginning on or after 1 January 2024). Amendments to IFRS 16 require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognise any amount of the gain or loss that relates to the right of use it retains. The new requirements do not prevent a seller-lessee from recognising in profit or loss any gain or loss relating to the partial or full termination of a lease.
At present, IFRSs as adopted by the EU do not significantly differ from regulations adopted by the International Accounting Standards Board (IASB) except for the following new standards and amendments to the existing standards, which were not adopted by the EU as at the date of this report:
Issued by IASB on 25 May 2023 (effective date determined by IASB: 1 January 2024). Amendments add disclosure requirements and “signposts” within existing disclosure requirements to provide qualitative and quantitative information about supplier finance arrangements.
Issued by IASB on 15 August 2023 (effective date determined by IASB: 1 January 2025). Amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.
Effective for annual accounting periods beginning on or after 1 January 2016. The European Commission has decided not to launch the endorsement process of this interim standard and to wait for the final standard. This standard is intended to allow entities that are first-time adopters of IFRS, and that currently recognise regulatory deferral accounts in accordance with their previous GAAP, to continue to do so upon transition to IFRS.
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. The effective date has been deferred indefinitely until the research project on the equity method has been concluded. The amendments address a conflict between the requirements of IAS 28 and IFRS 10 and clarify that in a transaction involving an associate or joint venture the extent of gain or loss recognition depends on whether the assets sold or contributed constitute a business.
The Group and the Company do not expect that the adoption of the above new standards and amendments to the existing standards during the period of initial application will have a material impact on the financial statements of the Group or the Company.
The principles of which have not been adopted by the EU remains unregulated. Management assesses that the application of hedge accounting to a portfolio of financial assets or liabilities pursuant to IAS 39 “Financial Instruments: Recognition and Measurement” will not have had a significant impact on the financial statements of the Group and the Company, if it had been applied at the balance sheet date.
On 25 June 2020, the International Accounting Standards Board (Board) issued the final version of the accounting standard for insurance contracts IFRS 17. When IFRS 17 was finalised, the effective date was deferred by two years, from 1 January 2021 to 1 January 2023. The Board also decided to align the effective date of IFRS 9 with that of IFRS 17 for insurance companies. As a result of the deferral of the effective date of IFRS 17, the beginning of the comparative period has also been deferred by two years, from 1 January 2020 to 1 January 2022.
IFRS 4 allowed the use of local accounting practices for insurance contracts in the consolidated financial statements. With IFRS 17, the Board has introduced, for the first time, common accounting guidance for insurance contracts. The Group and the Company have applied IFRS 17 for the first time for the purpose of preparing the financial statements for the 2023 financial year and the comparative information for 2022, taking into account the transitional provision in IFRS 17.C3(a).
At the same time, IFRS 9 “Financial Instruments”, which supersedes IAS 39, entered into force for the Group and the Company on 1 January 2023. For IFRS 9, the date of the first application was set as 1 January 2018, but the Group and the Company exercised the option to temporarily exempt the implementation of the standard until 1 January 2023.
The Group and the Company have not preliminarily adopted any other standard, interpretation or amendment that has been issued but has not yet entered into force. The adoption of IFRS 17 and IFRS 9 has a significant impact on the consolidated and separate financial statements. The effect of the transition to the new standards is recognised in retained earnings. The adoption of IFRS 17 and IFRS 9 has also led to significant changes in other equity items, notably the accumulated other comprehensive income, which is the fair value reserve under IAS 39.
The following illustrates the main impact of the adoption of IFRS 9 and IFRS 17 by comparing the restated statement of financial position of the Group and of the Company as at 1 January 2022 with the audited statement of financial position of the Group and the Company as at 31 December 2021.
| Impact of transition to IFRS 17 and IFRS 9 | Sava Insurance Group | EUR | ||||
|---|---|---|---|---|---|---|
| 31 December 2021 (published) (1) | IFRS 17 restatement effect (2) | IFRS 9 restatement effect (3) | Transition impact (4 = 2 + 3) | Other restatements and reallocations (5) | 1 January 2022 (restated) (6 = 1 + 4 + 5) | |
| ASSETS | ||||||
| Intangible assets and goodwill | 67,306,775 | -4,696,898 | 0 | -4,696,898 | 0 | 62,609,877 |
| Deferred acquisition costs | 4,697,567 | -4,697,567 | 0 | -4,697,567 | 0 | 0 |
| Other intangible assets and goodwill | 62,609,208 | 669 | 0 | 669 | 0 | 62,609,877 |
| Property, plant and equipment | 56,337,174 | -4,618 | 0 | -4,618 | 0 | 56,332,556 |
| Investment property | 14,281,192 | -592 | 0 |
| Right-of-use assets | 7,386,426 | -1,610 | 0 | -1,610 | 0 | 7,384,816 |
|---|---|---|---|---|---|---|
| Investments in associates accounted for using equity method | 20,479,729 | 0 | 0 | 0 | 0 | 20,479,729 |
| Deferred tax assets | 5,487,403 | 7,935,939 | 1,005,913 | 8,941,852 | 0 | 14,429,255 |
| Financial investments | 1,990,128,035 | -9,610,337 | 6,506,695 | -3,103,642 | 0 | 1,987,024,393 |
| Insurance contract assets | 172,836,349 | -4,815,360 | 0 | -4,815,360 | 0 | 168,020,989 |
| Reinsurance contract assets | 0 | 14,379,062 | 0 | 14,379,062 | 0 | 14,379,062 |
| Reinsurance contract assets | 57,767,056 | 6,478,950 | 0 | 6,478,950 | 0 | 64,246,006 |
| Receivables | 149,610,352 | -141,512,348 | 0 | -141,512,348 | 0 | 8,098,004 |
| Receivables arising out of primary insurance business | 128,544,723 | -128,544,723 | 0 | -128,544,723 | 0 | 0 |
| Receivables arising out of reinsurance and co-insurance business | 9,077,165 | -9,077,165 | 0 | -9,077,165 | 0 | 0 |
| Trade and other receivables | 11,988,464 | -3,890,460 | 0 | -3,890,460 | 0 | 8,098,004 |
| Current tax liabilities | 330,518 | 0 | 0 | 0 | 0 | 330,518 |
| Non-current assets held for sale |
| Cash and cash equivalents | 88,647,678 | -3,688 | 0 | -3,688 | 0 | 88,643,990 |
|---|---|---|---|---|---|---|
| Other assets | 4,380,387 | -342,270 | 0 | -342,270 | 0 | 4,038,117 |
| Deferred acquisition costs | 22,572,741 | -22,572,741 | 0 | -22,572,741 | 0 | 0 |
| Total assets | 2,658,322,359 | -154,766,510 | 7,512,608 | -147,253,903 | 0 | 2,511,068,456 |
| Subordinated liabilities | 74,863,524 | 0 | 0 | 0 | 0 | 74,863,524 |
|---|---|---|---|---|---|---|
| Deferred tax liabilities | 11,387,395 | 12,678,415 | 5,922,735 | 18,601,150 | 1,908,279 | 31,896,824 |
| Insurance contract liabilities | 1,761,683,455 | -140,580,630 | 0 | -140,580,630 | 0 | 1,621,102,825 |
| Reinsurance contract liabilities | 1,376,802 | 0 | 1,376,802 | 0 | 1,376,802 | |
| Investment contract liabilities | 172,660,266 | -4,815,360 | 0 | -4,815,360 | 0 | 167,844,906 |
| Provisions | 9,018,106 | -100,047 | 0 | -100,047 | 0 | 8,918,059 |
| Lease liability | 7,224,138 | 416,339 | 0 | 416,339 |
| Liabilities from primary insurance business | 41,669,619 | -41,669,619 | 0 | -41,669,619 | 0 | 0 |
|---|---|---|---|---|---|---|
| Liabilities from reinsurance and co-insurance business | 10,109,076 | -10,109,076 | 0 | -10,109,076 | 0 | 0 |
| Other operating and financial liabilities | 584,924 | 0 | -23,196 | -23,196 | 0 | 561,728 |
| Current tax liabilities | 3,004,684 | -8,151 | 0 | -8,151 | 0 | 2,996,533 |
| Other liabilities | 62,040,155 | -21,710,467 | 0 | -21,710,467 | 0 | 40,329,687 |
| Total liabilities | 2,154,245,342 | -204,521,794 | 5,899,539 | -198,622,255 | 1,908,279 | 1,957,531,366 |
| Share capital | 71,856,376 | 0 | 0 | 0 | 0 | 71,856,376 |
|---|---|---|---|---|---|---|
| Capital reserves | 42,702,320 | 0 | 0 | 0 | 0 | 42,702,320 |
| Profit reserves | 229,008,079 | 0 | 0 | 0 | 0 | 229,008,079 |
| Treasury shares | -24,938,709 | 0 | 0 | 0 | 0 | -24,938,709 |
| Accumulated other comprehensive income | 22,547,759 |
| Intangible assets and goodwill | 3,194,031 | 0 | 0 | 0 | 3,194,031 |
|---|---|---|---|---|---|
| Property, plant and equipment | 2,464,213 | 0 | 0 | 0 | 2,464,213 |
| Investment property | 7,899,693 | 0 | 0 | 0 | 7,899,693 |
| Right-of-use assets |
| Retained earnings | 116,166,406 | 61,173,806 | 11,162,972 | 72,336,778 | -1,908,279 | 186,594,905 |
|---|---|---|---|---|---|---|
| Net profit or loss for the period | 49,623,843 | 0 | 0 | 0 | 0 | 49,623,843 |
| Foreign currency translation reserve | -3,256,354 | 12,330 | 0 | 12,330 | 0 | -3,244,024 |
| Equity attributable to owners of the controlling company | 503,709,720 | 49,699,400 | 1,613,069 | 51,312,469 | -1,908,279 | 553,113,910 |
| Non-controlling interests in equity | 367,298 | 55,883 | 0 | 55,883 | 0 | 423,181 |
| Total equity | 504,077,018 | 49,755,283 | 1,613,069 | 51,368,352 | -1,908,279 | 553,537,091 |
| Total liabilities and equity | 2,658,322,359 | -154,766,511 | 7,512,608 | -147,253,903 | 0 | 2,511,068,456 |
| Investments in associates accounted for using equity method | 204,879 | ||||
|---|---|---|---|---|---|
| Investments in subsidiaries | 304,554,991 | ||||
| Deferred tax assets | 19,575,000 | ||||
| Financial investments | 3,688,957 | 2,774,231 | -73,544 | 2,700,688 | 6,389,645 |
| Investment contract assets | 0 | ||||
| Insurance contract assets | 3,063,438 | ||||
| Reinsurance contract assets | 48,486,444 | 7,582,052 | 0 | 7,582,052 | 56,068,497 |
| Receivables | 79,803,172 | -79,540,948 | 0 | -79,540,948 | 262,226 |
| Receivables arising out of primary insurance business | 74,410,185 | -74,410,185 | 0 | -74,410,185 | 0 |
| Receivables arising out of reinsurance and co-insurance business | 5,125,596 | -5,125,596 | 0 | -5,125,596 | 0 |
| Trade and other receivables | 267,390 | -5,166 | 0 | -5,166 | 262,226 |
| Current tax assets | 0 | ||||
| Non-current assets held for sale | 0 | ||||
| Cash and cash equivalents | 28,806,817 |
| Other assets | 28,806,817 |
|---|---|
| Deferred acquisition costs | 746,809 |
| 0 | |
| -764 | |
| -764 | |
| 746,043 | |
| Total assets | 832,078,758 |
| -80,600,719 | |
| 1,376,471 | |
| -79,224,248 | |
| 752,854,509 |
| Subordinated liabilities | 74,863,524 |
|---|---|
| Deferred tax liabilities | 76,227 |
| 3,343,343 | |
| 259,954 | |
| 3,603,297 | |
| 3,679,523 | |
| Insurance contract liabilities | 331,812,724 |
| -40,365,818 | |
| 0 | |
| -40,365,818 | |
| 291,446,906 | |
| Reinsurance contract liabilities | 0 |
| 766,545 | |
| 0 | |
| 766,545 | |
| 766,545 | |
| Investment contract liabilities | 0 |
| 0 | |
| 0 | |
| 0 | |
| 0 | |
| Provisions | 421,865 |
| 0 | |
| 0 | |
| 0 | |
| 421,865 | |
| Lease liability | 203,730 |
| 0 | |
| 0 | |
| 0 | |
| 203,730 | |
| Liabilities | 46,148,843 |
| -46,148,843 | |
| 0 | |
| -46,148,843 | |
| 0 | |
| Liabilities from primary insurance business | 39,556,034 |
| -39,556,034 | |
| 0 | |
| -39,556,034 | |
| 0 | |
| Liabilities from reinsurance and co-insurance business | 6,592,809 |
| -6,592,809 | |
| 0 | |
| Current tax liabilities | 394,752 |
| 0 | |
| 0 |
| Other liabilities | 6,991,093 | -622,148 | 0 | -622,148 | 6,368,945 |
|---|---|---|---|---|---|
| Total liabilities | 460,912,758 | -83,026,921 | 259,954 | -82,766,967 | 378,145,790 |
| Share capital | 71,856,376 | 0 | 0 | 0 | 71,856,376 |
|---|---|---|---|---|---|
| Capital reserves | 54,239,757 | 0 | 0 | 0 | 54,239,757 |
| Profit reserves | 229,238,622 | 0 | 0 | 0 | 229,238,622 |
| Treasury shares | -24,938,709 | 0 | 0 | 0 | -24,938,709 |
| Accumulated other comprehensive income | 3,716,228 | -3,604,872 | -3,270,615 | -6,875,487 | -3,159,259 |
| Retained earnings | 10,633,662 | 6,031,074 | 4,387,132 | 10,418,206 | 21,051,868 |
| Net profit or loss for the period | 26,420,064 | 0 | 0 | 0 | 26,420,064 |
| Foreign currency translation reserve | 0 | 0 | 0 | 0 | 0 |
| Equity attributable to owners of the controlling company | 371,166,000 | 2,426,202 | 1,116,517 | 3,542,719 | 374,708,719 |
| Non-controlling interests in equity | 0 | 0 | 0 | 0 | 0 |
| Total equity | 371,166,000 | 2,426,202 | 1,116,517 | 3,542,719 | 374,708,719 |
| 832,078,758 | -80,600,719 |
|---|---|
1,376,471
-79,224,248
752,854,509
In the following, we describe the most significant changes in the statement of financial position of the Group and the Company:
| EUR | Group | Sava Re | ||
|---|---|---|---|---|
| Accumulated other comprehensive income | Accumulated other comprehensive income | |||
| Closing balance as at 31 December 2021 (audited) | 22,547,759 | 3,716,228 | ||
| Reclassification of debt instruments from available-for-sale to amortised cost | -14,081,754 | -4,277,279 | ||
| Recognition of expected credit losses under IFRS 9 for debt financial assets at FVOCI | 2,000,157 | 239,484 | ||
| Deferred tax relating to the application of IFRS 9 | 2,531,694 | 767,180 | ||
| Recognition of changes in interest rates in insurance and reinsurance contracts | -15,428,942 | -4,450,459 | ||
| Deferred tax relating to the application of IFRS 17 | 3,942,206 | 845,587 | ||
| Opening balance under the new standards (1 January 2022) | 1,511,120 | -3,159,259 | ||
| Retained earnings of previous years | Closing balance as at 31 December 2021 (audited) | 116,166,406 | 10,633,662 | |
| Impact of initial application of IFRS 17 | 74,482,491 | 7,445,770 | ||
| Deferred tax relating to the application of IFRS 17 | -13,308,685 | -1,414,696 | ||
| Recognition of ECL under IFRS 9, including those measured at FVOCI | 13,964,533 | 5,487,813 | ||
| Deferred tax relating to the application of IFRS 9 | -2,801,561 | -1,100,681 | ||
| Opening balance under the new standards (1 January 2022) | 188,503,184 | 21,051,868 | ||
| Prior-period restatements* | -1,908,279 | 0 | ||
| Opening balance under new standards, including prior-period restatements (1 January 2022) | 186,594,905 | 21,051,868 | ||
| * Adjustment to calculated deferred tax on the acquisition of Sava Penzisko (2019). |
| EUR | Group | Sava Re | |
|---|---|---|---|
| Total change in equity (net of tax) resulting from adoption of new standards | Accumulated other comprehensive income | -9,549,903 | -3,270,615 |
| Retained earnings of previous years | 11,162,972 | 4,387,132 | |
| Total change in equity resulting from adoption of IFRS 9 | 1,613,069 | 1,116,517 | |
| Accumulated other comprehensive income on insurance and reinsurance contracts | -11,486,736 | -3,604,872 | |
| Retained earnings of previous years | 61,173,806 |
12,330
0
55,883
0
49,755,283
2,426,202
The Group and the Company have performed an assessment of each group of contracts to determine the possible transitional approaches provided by the standard. As required, a fully retrospective approach has been adopted, unless this was considered impracticable for the group of contracts under consideration. In all other cases, either the modified retrospective approach or the fair value approach has been adopted instead.
At the transition date of 1 January 2022, the Group and the Company:
The Group assessed historical information available and determined that all reasonable and supportable information necessary for applying the full retrospective approach were not available for all groups of insurance contracts issued before the transition date. The Group elected to apply the modified retrospective approach for some groups of contracts, depending on the entity in the Group, its portfolios, years of initial recognition of a group of contracts and the measurement method, which was intended to achieve the closest possible outcome to the full retrospective application maximising the use of available information.
The Group and the Company applied modifications in the following areas:
The Group and the Company estimated the cash flows at the date of initial recognition by estimating these cash flows at the date of transition, adjusted by actual cash flows that were known to have occurred between then and the date of initial recognition. These also included cash flows from contracts that had ceased to exist by the date of transition.
In case of business without direct participation features the Group and the Company had reasonable and supportable information to determine discount rates according to IFRS 17 requirements from 31 December 2003 on. For incurred claims before 31 December 2003, discount rates as at 31 December 2003 were used. On the other hand, in case of business with direct participation features (VFA method) only discount rates from 31 December 2021 were used, in accordance with the requirements of the standard.
The Group estimated the amount of risk adjustment for non-financial risk at the date of transition. The cash flows for past risk adjustment releases were estimated by assuming that these releases are proportionate to coverage units for a given period. Specifically, past risk adjustment releases for a given period were estimated by multiplying the coverage unit for the given period with the ratio between the risk adjustment release and the expected coverage unit of the first projection period following the transition date. This has been performed on the level of a group of contracts.
The Group and the Company allocated the insurance acquisition cash flows that occurred during the period from the initial recognition date until the transition date using a systematic and rational allocation method between groups of insurance contracts recognised until the transition date. No insurance acquisition cash flows were allocated to groups that are expected to be recognised after the transition date according to accepted methodology for IFRS 17 measurement.
For the business without direct participation features, the CSM at transition date was determined by first estimating the CSM at initial recognition and then decreasing this amount according to the share of service provided during the period until transition (i.e., in the same way as in case of the full retrospective approach).
If there was a loss component estimated at the date of initial recognition, then the Group and the Company determined the amounts allocated to the loss component before the date of transition using a systematic basis of allocation in the same way as in the case of the full retrospective approach.
In the case of VFA, the Group calculated the CSM or loss component at a transition date as a result of the total underlying items value minus present value of future cash flows minus/plus adjustments for amounts charged and paid to policyholder before transition, the release for risk adjustment for non-financial risk and insurance acquisition cash flows paid before the transition. If such amount results in CSM, it is adjusted for an amount of the contractual service margin that relates to services provided before that date. If a loss component is calculated, it is adjusted to nil and LRC excluding loss component is increased by the same amount at a transition date.
For groups of contracts, measured under PAA, a modified retrospective approach was applied, because LRC was estimated at a transition date. In case of onerous groups of contracts measured under PAA, LRC was adjusted for a loss component, estimated at a transition date.
For a group of reinsurance contracts held that was purchased before or at the same time the underlying insurance contracts were issued, the Group determines the loss-recovery component of the asset for remaining coverage at the transition by multiplying the loss component of the liability for remaining coverage for the underlying insurance contracts at the transition date with the percentage of claims for the group of underlying onerous insurance contracts that the Group expects to recover from the group of reinsurance contracts held. Where the Group and the Company did not have reasonable and supportable information to determine the loss-recovery component of the asset for remaining coverage, the Group and the Company did not identify such loss-recovery component.
For those groups of contracts for which coverage has expired at the transition date, there is no revenue recognised after the date of transition, except in case of experience adjustments due to subsequent payments or refunds of premiums or change in premium receivables. If there is still coverage remaining after the date of transition, revenue for such groups is recognised.
For groups of contracts, other than direct participating contracts, that were determined to be onerous at the date of transition, the loss component was estimated at the transition date. For direct participating contracts with remaining coverage that at transition date were determined to have been onerous on initial recognition, the Group does not track any loss component. Revenue is recognised in the same way as for other non-onerous groups of contracts. Subsequent increase in the Group’s share of the fair value of the underlying items will create a CSM, which would then be allocated to the period and included in the determination of the period’s revenue.
The Group and the Company have elected a disaggregated presentation of finance income or expenses from insurance contracts for all portfolios. The cumulative amount recognised in OCI at the date of transition was estimated as:
The Group and the Company chose the annual reporting accounting policy choice therefore interim financial statements do not influence the determination of CSM or loss component at the transition date.
The Group concluded that reasonable and supportable information for application of the modified retrospective approach was not available for all insurance contracts issued before the date of transition, depending on the entity in the Group, and therefore applied the fair value approach for those contracts. Also, the Company applied the fair value approach for some reinsurance contracts issued, covering underlying contracts in the Group. The Group and the Company used reasonable and supportable information available at the transition date to:
The Group included contracts into groups of contracts issued within one year apart.
In applying the fair value approach at the transition date, the CSM or loss component of the LRC was estimated as the difference between the fair value and the fulfilment cash flows of the group of contracts as of that date. In determining fair value, the requirements of IFRS 13 Fair Value Measurement were followed, except for that standard’s requirement in relation to demand features (that fair value cannot be less than the amount repayable on demand). This is because it would contradict the IFRS 17 requirement to incorporate cash flows on a probability-weighted basis.
The Group used discount rates as at the date of transition for fair value approach.
The Group included all insurance acquisition cash flows paid before the transition in the measurement of the groups of insurance contracts recognised at the transition date, except for the contracts that already ceased before transition date. Consequently, no assets for insurance acquisition cash flows at the transition date were recognised. Additionally, it was assumed that all acquisition costs were already amortised until the transition date due to lack of reasonable and supportable information.
The Group and the Company chose to disaggregate the presentation of finance income or expenses from insurance contracts and determined the cumulative amount recognised in OCI as follows:
For a group of reinsurance contracts held the Group determines the loss-recovery component of the asset for remaining coverage at transition by multiplying the loss component of the liability for remaining coverage for the underlying insurance contracts at the transition date with the percentage of claims for the group of underlying onerous insurance contracts that the Group expects to recover from the group of reinsurance contracts held. Where the Group and the Company did not have reasonable and supportable information to determine the loss-recovery component of the asset for remaining coverage, the Group and the Company did not identify such loss-recovery component.
The Group chose to classify as a liability for incurred claims the liability for settlement of claims incurred before a group of insurance contracts was acquired in a portfolio transfer or a business combination within the scope of IFRS 3 Business Combinations.
The effect of groups of insurance contracts measured at the transition date applying the modified retrospective approach or the fair value approach on the contractual service margin and insurance revenue in subsequent periods is shown in note 16.8.10 Movement in liabilities for remaining coverage (LRC) and liabilities for incurred claims (LIC) – insurance contracts issued and note 16.8.12 Movement in individual components of insurance contracts.
The Group and the Company adopted IFRS 9 from 1 January 2023 and have prepared comparative financial statements for the 2022 financial year. The Group and the Company have used the “classification overlay approach” described below to prepare comparative data for 2022.
At the date of initial application, the Group and the Company:
Such assessment or designation was made on the basis of the facts and circumstances existing at the date of initial application. That classification was applied retrospectively.
Assets measured at amortised cost in accordance with IFRS 9 are deposits with a maturity of more than three months, loans and debt securities classified as hold to collect at the date of transition to IFRS 9 that the Group and the Company will hold to maturity.
Under IAS 39, the Group and the Company classified most of their financial assets in the form of debt securities as available for sale (AFS). These financial assets have been classified in accordance with IFRS 9 into one of the following groups: at fair value through other comprehensive income or at fair value through profit or loss. Under IFRS 9, the Group and the Company may classify debt securities in the fair value through other comprehensive income (FVOCI) measurement category provided that the contractual cash flows are solely repayment of principal and interest (pass the SPPI test).
Most of the equity instruments that were classified as available for sale (AFS) under IAS 39 are classified as at fair value through profit or loss (FVTPL), while there is an option to designate shares and participations at fair value through other comprehensive income (FVOCI) under the standard. Other types of investments, such as units in collective investment undertakings, ETFs, alternative funds, etc. which were classified as available-for-sale (AFS) under IAS 39, were reclassified to the fair value through profit or loss (FVTPL) measurement category.
| Category | Amount | Reclassification | ECL | Other | Amount | Category | |
|---|---|---|---|---|---|---|---|
| Deposit and CD | LR | 18,561,698 | - | -343,151 | - | 18,218,547 | AC |
| Loans granted* | LR | 126,161 | - | - | - | - | |
| Loans granted | LR | 1,548,376 | - | - | - | - |
| AC | Cedants | LR | Total LR/AC |
|---|---|---|---|
| 29,833 | 1,518,543 | 9,610,337 | 29,846,572 |
| 0 | -372,983 | 0 | 19,737,091 |
| HTM | 40,023,124 | -40,023,124 | |
|---|---|---|---|
| - | - | – Reclassified to debt investments at AC | |
| HTM | -40,023,124 | -56,343 | |
| Debt instruments at AC (from HTM) | 40,023,124 | ||
| -56,343 | 39,966,781 | AC | |
| Effect of IFRS 17 (Financial Contracts) | -3,349,096 | ||
| ECL effect in Group | -26,048 | -26,048 | |
| Total HTM/AC | HTM | 40,023,124 | 0 |
| -82,391 | 0 | 36,591,638 | AC |
| 1,368,432,673 | -1,368,432,673 | ||
|---|---|---|---|
| - | - | – Reclassified to debt investments at FVOCI | |
| -1,233,810,051 | -1,844,004 | 1,844,004 | |
| - | -7,502,546 | ||
| - | -105,745,268 | ||
| - | – Reclassified to equity investments at FVOCI (option) |
| Total AFS | 1,368,432,673 | -1,368,432,674 | -1,844,004 | 1,844,004 | 0 | |
|---|---|---|---|---|---|---|
| Debt instruments at FVOCI (from AFS) | 1,233,810,051 | - | - | 1,233,810,051 | FVOCI | |
| Equity instruments at FVOCI (option) (from AFS) | 21,374,809 | - | - | 21,374,809 | FVOCI | |
| Effect of IFRS 17 (Financial Contracts) | - | - | - | 6,304,614 | FVOCI | |
| Total FVOCI | 0 | 1,255,184,860 | 0 | 0 | 1,261,489,474 | |
| Equity instruments at FVTPL (from AFS) | 105,745,268 | - | - | 105,745,268 | FVTPL | |
| Effect of change in model valuation | - | - | - | 1,858,910 | FVTPL | |
| Effect of IFRS 17 (Financial Contracts) | - | - | - | 2,314,904 | FVTPL | |
| Debt instruments at FVTPL (from FVOCI) | 7,502,546 | - | - | 7,502,546 | FVTPL | |
| Financial assets at FVTPL (designated) | 34,386,074 | -34,386,074 | - | - | - | FVTPL |
| Financial assets at FVTPL (mandatory) | - | 34,386,074 | - | 34,386,074 | FVTPL | |
| Total FVPL/FVTPL | 34,386,074 | 113,247,814 | 0 | 0 | 151,807,703 |
| 1,472,688,443 | 0 | -2,299,379 | 1,844,004 | 1,469,625,906 |
|---|---|---|---|---|
| LR | 2,008,600 | - | -38,593 | - | 1,970,007 |
|---|---|---|---|---|---|
| HTM | 4,078,892 | -4,078,892 | - | - | - | 239 |
|---|---|---|---|---|---|---|
| Reclassification | ECL under IFRS 9 as at 1 January 2022 | ||
|---|---|---|---|
| Loans and credits granted from LR / Loans, credits granted at AC | 0 | 411,576 | 411,576 |
| HTM debt securities under IAS 39 / AC debt instruments under MSRP 9 | 0 | 83,943 | 83,943 |
| AFS debt securities under IAS 39 / FVOCI debt instruments under MSRP 9 | 439,496 | 2,000,158 | 2,439,654 |
| Total | 439,496 | 2,495,677 | 2,935,173 |
| Amount | Reclassification | ECL | Other | |||||
|---|---|---|---|---|---|---|---|---|
| Amount | Category | Reclassified to debt investments at AC | HTM | - | -4,078,892 | -1,551 | - | - |
| Debt instruments at AC (from HTM) | - | 4,078,892 | -1,551 | - | 4,077,341 | AC | ||
| Total HTM/AC | HTM | 4,078,892 | 0 | -1,551 | 0 | 4,077,341 | AC |
| 62,859,271 | -62,859,271 | - | - | - |
|---|---|---|---|---|
| Total AFS | 62,859,271 | -62,859,271 | -156,154 | 156,154 | 0 |
|---|---|---|---|---|---|
| Debt instruments at FVOCI (from AFS) | 60,882,191 | - | - | 60,882,191 | |
| Equity instruments at FVOCI (from AFS) | 1,977,080 | - | - | 1,977,080 | |
| Total FVOCI | 0 | 62,859,271 | 0 | 0 | 62,859,271 |
| Financial assets at FVTPL (designated) | 448,492,829 | -448,492,829 | - | - | - |
| Financial assets at FVTPL (mandatory) | - | 448,492,829 | - | - | 448,491,870 |
| Total FVPL/FVTPL | 448,492,829 | 0 | 0 | 0 | 448,491,870 |
| Total assets held for the benefit of policyholders who bear the inv. risk | 517,439,592 | 0 | -196,298 | 156,154 | 517,398,488 |
| Total financial investments under IFRS 9 | 1,990,128,035 | 0 | -2,495,677 | 2,000,158 | 1,987,024,394 |
| Cash and cash equivalents | LR | 88,647,678 | - | - | 88,643,990 |
| Total cash and cash equivalents | 28,806,817 | 0 | 0 | - | - |
| Total financial assets | 28,806,817 |
|---|---|
| Financial assets (EUR) | 2,018,934,852 |
| HTM financial liabilities | 0 |
| -2,495,677 | 2,000,158 |
| 2,015,831,211 | |
| HTM_L | -74,863,524 |
| 74,863,524 | - |
| Reclassified to: AC financial liabilities | - |
| AC financial liabilities (from HTM) | -74,863,524 |
| AC_L | |
| Total HTM_l/AC_L | -74,863,524 |
| Total financial liabilities | -74,863,524 |
| Category | Amount | ECL | Other | Amount |
|---|---|---|---|---|
| Deposits from cedants | LR | 9,610,337 | - | - |
| Loans granted | LR | 2,572,973 | -49,419 | 2,523,554 |
| Total LR/AC | LR | 12,183,310 | 0 | -49,419 |
| HTM financial investments | HTM | 2,816,979 | -2,816,979 | – Reclassified to debt investments at AC |
| Debt instruments at AC (from HTM) | -2,816,979 | -17,001 | |||||
|---|---|---|---|---|---|---|---|
| Total HTM/AC | HTM | 2,816,979 | 0 | -17,001 | 0 | 2,799,977 | AC |
| AFS financial investments | 303,501,261 | -303,501,261 | |||||
| – Reclassified to debt investments at FVOCI | -271,786,710 | -239,484 | 239,484 | ||||
| – Reclassified to equity investments at FVTPL | -31,714,551 | ||||||
| Total AFS | AFS | 303,501,261 | -303,501,261 | -239,484 | 239,484 | 0 | |
| Debt instruments at FVOCI (from AFS) | 271,786,710 | 271,786,710 | FVOCI | ||||
| Total FVOCI | 0 | 271,786,710 | 0 | 0 | 271,786,710 | FVOCI | |
| Equity instruments at FVTPL (from AFS) | 31,714,551 | 31,714,551 | FVTPL | ||||
| Effect of change in model valuation | 1,517,200 | FVTPL | |||||
| Financial assets at FVTPL (designated) | FVTPL | 9,283,045 | -9,283,045 | FVTPL | |||
| Financial assets at FVTPL (mandatory) | FVTPL | 9,283,045 | 9,283,045 | FVTPL |
| FVTPL | 9,283,045 |
|---|---|
| FVTPL | 31,714,551 |
| 0 | 0 |
| Total financial investments | 327,784,595 |
| 0 | -305,905 |
| 239,484 | 319,625,038 |
| LR | 28,806,817 |
|---|---|
| - | - |
| - | - |
| Total cash and cash equivalents | 28,806,817 |
| 0 | 0 |
| 0 | 28,806,817 |
| 356,591,412 | 0 |
|---|---|
| -305,905 | 239,484 |
| 348,431,855 |
| HTM_L | -74,863,524 |
|---|---|
| 74,863,524 | - |
| - | - |
| – Reclassified to financial liabilities at AC | - |
| 74,863,524 | - |
| - | - |
| - | -74,863,524 |
|---|---|
| - | -74,863,524 |
| HTM_L | -74,863,524 |
|---|---|
| 0 | 0 |
| 0 | -74,863,524 |
| -74,863,524 | 0 |
|---|---|
| 0 | 0 |
| -74,863,524 |
| EUR | Balance of impairment allowance under IAS 39 |
|---|---|
| Reclassification | ECL under IFRS 9 as at 1 January 2022 |
| Loans and credits granted from LR / loans and credits granted at AC | 0 |
| 49,419 | 49,419 |
| HTM debt securities under IAS 39 / AC debt instruments under MSRP 9 | 0 |
| 17,001 |
| 17,001 | 439,496 | 239,484 | 678,981 |
|---|---|---|---|
| Total | 439,496 | 305,905 | 745,401 |
The Group has elected to designate certain equity securities to be measured at fair value through other comprehensive income (FVOCI). These instruments are not held for trading, and at initial recognition the Group has made an irrevocable election to designate them to this category. The cumulative gains and losses recognised in accumulated other comprehensive income are reclassified to retained earnings on disposal of such instruments.
The Group has elected to reclassify to other comprehensive income the changes in the fair value of equity securities held for the long term for strategic purposes. These investments are not expected to be sold in the short to medium term. Previously, these investments were classified as available for sale. As a result, assets with a fair value of EUR 21,374,809 were reclassified from available-for-sale financial assets to financial assets at FVOCI. As a result of the reversal of the permanent impairment of available-for-sale equity investments, EUR 735,670 of the fair value reserve was reclassified to retained earnings on 1 January 2022.
For a detailed overview of securities classified as FVOCI, see section 16.8.7, table “Equity securities classified as FVOCI”.
The main risk categories that the Group is exposed to are:
| Risks | Summary of risks in 2023 | Risk described in section |
|---|---|---|
| Insolvency risk | The Group and the Company ensure an adequate level of excess capital. During 2023, the Group’s capital adequacy in accordance with the Solvency II standard formula remained within the target capital range as defined in the risk strategy and well above regulatory requirements. Throughout 2023, Sava Re’s capital adequacy was consistently assessed to be above the optimal level of the solvency ratio as defined in the risk strategy and significantly above regulatory requirements. | 16.7.2 |
| Underwriting risks | In terms of capital requirements, the Group’s most significant risks include non-life, life, and health underwriting risks. These risks are managed appropriately and remain at similar levels to last year. In non-life insurance business, the premium and reserve risk decreased slightly and the catastrophe risk increased slightly. The risk of claims inflation continues to be a concern for non-life insurance business. Sava Re is mainly exposed to non-life underwriting risks, which remained unchanged compared to 2022. | 16.7.3 |
| Financial risks | The Group and the Company ensure the appropriate management of financial risks. Exposure to these risks is actively monitored and managed, and appropriate diversification of the investment portfolio and management of assets and liabilities is ensured. Financial risks did not increase further in 2023 compared to 2022. The investment policy was adapted to the changed circumstances. The Group and the Company maintain a sufficient level of highly liquid investments. | 16.7.4 |
| Operational risks | The Group and the Company actively manage operational risks by continuously improving the internal control environment and processes. Operational risks increased slightly compared to the previous year, mainly due to a slight increase in risks related to data privacy and security and operational risks related to the adoption of the new accounting standard IFRS 17. | 16.7.5 |
| Strategic risks | Strategic risks are an important risk category for the Group and Sava Re due to the uncertain geopolitical environment and the associated unpredictability. The risks are at a similar level compared to last year. The strategic risks section also discusses sustainability risk and climate change risk. The Group and the Company strive to limit the risks sufficiently and to respond and adapt effectively to changes in the environment. | 16.7.6 |
The following is an overview of risks in terms of the potential volatility of business results and the resulting impact on the financial statements of the Group and the Company. Sensitivity analyses are included for each risk group, showing the impact on profit or loss and accumulated other comprehensive income (AOCI).
The potential impact of an extreme internal or external risk materialising and its impact on the Group’s and the Company’s solvency position will be addressed in the Solvency and Financial Condition Report of the Sava Insurance Group for 2023, which will be posted on the Sava Re website on 17 May 2024, and in the Solvency and Financial Condition Report of Sava Re d.d. for 2023, which will be posted on the Company’s website on 5 April 2024.
The uncertain geopolitical situation continued in 2023. The war between Russia and Ukraine continued, and later in the year the military conflict between Israel and Hamas began. The Sava Insurance Group and Sava Re reviewed their exposures at the outbreak of the military conflict and found that there were no material exposures in the region. Tensions between China and Taiwan intensified in 2023. Increasing cooperation between Russia, Iran and North Korea also poses a threat to global stability. Mounting trade restrictions on the strategic positioning of imports and exports of key minerals and rare metals could lead to high price volatility and congestion in supply chains in the future. These frictions also affect the free movement of goods and international trade. Elections will be held in no fewer than 40 countries around the world next year, and the results and changes in the ruling political parties could further influence the geopolitical situation.
From a stock market perspective, 2023 was a good year for equities and bonds, outperforming expectations. The US economy proved resilient, avoiding a recession despite high interest rate hikes and even achieving better-than-expected economic growth of 2.9% in the third quarter. In Europe, there was no GDP growth, while Slovenia achieved 1.6% GDP growth in 2023, and the other countries where the Group is present had slightly higher growth. At the same time, strong deflation was observed in 2023. In the eurozone, the US and other developed countries, inflation is falling as a result of central banks’ rather restrictive monetary policies. The downturn heralds the likely end of interest rate hikes. Forecasts for 2024 currently point to a further decline in inflation. Corporate bond spreads have narrowed in 2023, and companies are expected to start refinancing and issuing new debt at lower costs in 2024. Uncertainty about economic growth in Europe is relatively high.
confirmed that, over the entire strategy period, the solvency position was compliant with both statutory provisions and the Group’s and the Company’s internal rules, ensuring continuous and adequate liquidity. Scenario analyses showed that both the Sava Insurance Group and Sava Re have a robust solvency ratio resilient to various adverse scenarios as the solvency remains well above the regulatory level even if a scenario materialises.
Claims inflation
The impacts of claims inflation were diminishing in 2023. The risk of a decline in the profitability of the non-life insurance business due to claims inflation in motor and property insurance was regularly monitored and the impact analysed. The necessary measures have been taken to maintain an appropriate level of profitability in the insurance business, in particular through repeated adjustments to premium rates. On the other hand, the assets and liabilities of (re)insurance contracts have been adjusted to take account of future inflation. The impact of claims inflation was also monitored on a quarterly basis through the periodic risk reports.
Zavarovalnica Sava maintained its profitability through rate increases, largely offsetting the effect of the increase in average claims. At the end of the year, no significant additional upward pressure on prices from claims inflation was observed in Slovenia.
In the non-EU companies, a significant impact of claims inflation was seen somewhat later, in the first half of 2023, while no major impact was seen in the second half of the year. The Sava Insurance Group continues to monitor and analyse the impact on its subsidiaries and is taking the necessary measures to mitigate it.
Claims inflation was also reflected in the reinsurance markets, where we saw an increase in sums insured in 2023, with an increase in retentions. In both the domestic and international reinsurance markets, other factors (including increased loss frequency in some markets, macroeconomic conditions, geopolitical conflicts and the prevailing hard market) influenced the renewal of reinsurance treaties in 2023, further tightening conditions and thus making the renewal of reinsurance protection more challenging. Despite the difficult environment, the Group obtained adequate reinsurance protection in 2023.
In the renewal of its accepted business in 2023, Sava Re continued to focus on appropriate portfolio diversification and adjustments to the pricing and terms of reinsurance treaties (war risk exclusions, sanctions clauses, specific exclusions and limits of cover). It also continued its efforts to reduce the discrepancies between reinsurance accepted and retrocessional cover.
In the period ahead, trends in the renewal of reinsurance programmes at 1 January 2024 suggest a gradual stabilisation of the market, which will have a moderating effect on rates and expectations in the reinsurance markets.
During the summer months, Slovenia and certain other countries in which the Group has a presence were hit by a wave of storms and floods that caused significant property damage. The gross claims resulting from these events totalled EUR 88.3 million in 2023. Taking into account reinsurance protection, the impact of these events on the Group’s profit was EUR 27.4 million. Zavarovalnica Sava had the largest impact on profit (EUR 26.4 million).
As expected, these events have had an impact on the renewal of reinsurance protection, in particular on the price of reinsurance, changes to individual reinsurance programmes, the willingness of partners to renew shares and also the willingness of the reinsurance markets to renew a particular type of reinsurance protection. All this resulted in an increased risk of obtaining adequate reinsurance protection, to which Sava Re responded by securing adequate reinsurance protection for the next financial year.
Climate change is a significant sustainability risk for the Sava Insurance Group and Sava Re, as it has a direct and indirect impact on their business activities, and monitoring and managing this risk is crucial for the Group’s long-term performance. Climate change is a serious risk for society and the economy, and for the business of insurance and reinsurance companies.
The Group monitors climate risk, including physical and transition risks. Physical risks are those that arise from the physical effects of climate change. Transition risks are those that arise from the transition to a low-carbon and climate-resilient economy.
Given its activity, physical risks are extremely important for the Group, and the harmful effects of global warming on natural and human systems are already visible today. The Group and the Company consider the risk of an increase in the severity and frequency of extreme weather events and natural catastrophes due to climate change to be a key physical risk. Without further international action on climate change, average global temperatures will continue to rise, potentially increasing underwriting risk through greater loss unpredictability or exposure to natural catastrophes. Monitoring the development of such events will therefore be very important in the future.
Also significant for the Group is transition risk, which relates to potential material negative impact on the value of investments and other significant effects on its business operations. Transition and physical risks are, and will continue to be, extremely important for the Group’s companies, so they are subject to constant Group-level monitoring. Climate risk was also analysed (qualitatively and quantitatively) in the ORSA.
There is a high level of awareness within the Group that there are many challenges and risks associated with the Group’s transition to sustainable business. Monitoring and reporting on risks related to sustainable development and social responsibility has been established. There is also a strong focus on effective and meaningful implementation of sustainability legislation.
Cyber risks were among the key operational risks in 2023. Monitoring and managing these risks will become increasingly important for the Sava Insurance Group. The realisation of cyber risks can lead to a complete disruption of operations and high financial losses, while also affecting the Group’s reputation. Therefore, additional risk mitigation measures are being planned and implemented at Group level, in addition to those already in place. These include the establishment of an information security team, the development of a cyber incident response plan, the integration of a multifactor user authentication system and the establishment of a database protection system. Major cyber risks identified include ransomware, malware, social engineering, data breaches and theft, and denial of service. Security threats and incidents are also regularly monitored through the Security Operations Centre (SOC).
In 2023, the Sava Insurance Group has taken an active approach to planning activities to comply with the new DORA125 regulation for all companies in the Group. The legislation, which comes into force on 17 January 2025, sets new network and information security requirements for financial institutions. Activities will be led at Group level by a formally established project team and include ICT risk management, ICT incident reporting, digital operational resilience testing, third-party ICT risk management and the establishment of information sharing processes.
Despite the challenging environment, the Sava Insurance Group exceeded its planned profit for 2023. The impact of events (mainly catastrophe claims and claims inflation) on the solvency ratio was also monitored quarterly throughout 2023, at both Group and company level. Estimates show that their solvency ratios in 2023 were significantly above the regulatory requirement and in line with internal criteria. For both the Sava Insurance Group and Sava Re, risks are continuously identified, monitored, analysed and managed, and the necessary decisions and adjustments are made.
A possible deterioration of the macroeconomic and geopolitical situation may have an adverse impact on the assets and liabilities of the Sava Insurance Group and Sava Re also in 2024. This may have a direct or indirect impact on the Group’s and the Company’s business. The solvency of the Sava Insurance Group and Sava Re may also be affected, but it is not expected to be compromised given their strong capitalisation. Liquidity risk is well managed in both the Group and Sava Re, and no significant increase in liquidity risk is expected over the next 12 months. For Sava Re, the going concern assumption continues to apply, based on the expected cash flow from the core business and the composition of the investment portfolio, which can provide sufficient liquidity for a prolonged period of stress.
At the Group and Sava Re level, the standard formula is used to calculate the capital requirements in accordance with the Solvency II legislation. The solvency capital requirement (SCR) is fully calculated once a year, whereas the eligible own funds supporting the Group’s solvency requirements are assessed quarterly and the solvency position is assessed during the year. Thus, on a quarterly basis, the solvency position is shown as an interval within which the solvency ratio is estimated to lie in the relevant quarter. Capital adequacy as at 31 December 2022 was assessed under the previous accounting standards (IFRS 4), whereas the assessment as at 31 December 2023 was based on IFRS 17. This had no significant impact on the solvency ratio.
The Group’s estimated solvency position as at 31 December 2023 shows that the Group is well capitalised, with an expected solvency ratio of between 188% and 194% (31 December 2022: 183%). The Group’s eligible own funds to cover the solvency capital requirement (SCR) amounted to EUR 566.0 million at 31 December 2022 and are estimated to have been higher at year-end, mainly due to the strong performance in 2023 and the positive change in the accumulated other comprehensive income. The Group’s solvency capital requirement (SCR) was EUR 310.1 million as at 31 December 2022 and is estimated to have increased in 2023, mainly as a result of an increase in non-life and health underwriting risk and a lower adjustment to the SCR for the loss absorbency of deferred taxes.
The assessments carried out indicate that the Group’s solvency as at 31 December 2023 remains at a high level, well above the regulatory requirement.
| Overcapitalisation | > 250% |
|---|---|
| Acceptable capitalisation | 210%–250% |
| Optimal capitalisation | 170%–210% |
| Suboptimal capitalisation | 150%–170% |
| Warning capital level | 100%–150% |
| Additional engagement or return of capital | |
| Seeking ways to restructure capital use | |
| No action required | |
| Potential capital restructuring | |
| Measures to safeguard Group solvency |
The estimated solvency ratio of the Sava Insurance Group at the end of 2023 is therefore also in line with the internal criteria and is at the level of optimal capitalisation, as shown in the following graph. The graph shows the Group’s solvency ratio ranges by quarter compared to the lower and upper limits of the optimal level of the solvency ratio under internal criteria.
The Company’s solvency position as at 31 December 2023 shows that it is well capitalised, with a solvency ratio of 289% (31 December 2022: 266%). The amount of own funds eligible to cover the solvency capital requirement (SCR) as at 31 December 2023 was EUR 653.2 million (31 December 2022: EUR 569.2 million). The increase is mainly due to the strong operating performance in 2023 and the increase in the value of participations. The Company’s solvency capital requirement as at 31 December 2023 was EUR 225.9 million (31 December 2022: EUR 213.8 million) and increased mainly due to the increase in market risks.
Throughout 2023, the Company’s capital adequacy was consistently assessed to be above the lower bound of the solvency ratio defined in the risk strategy (more than 200%) and significantly above regulatory requirements.
Based on the preceding charts, the Company believes that insolvency risk is low. The scenarios conducted under ORSA 2024 also demonstrated the robustness of the Group’s and the Company’s solvency position.
The annual calculation of capital adequacy will be discussed in more detail in the Solvency and Financial Condition Report of the Sava Insurance Group and the Solvency and Financial Condition Report of Sava Re d.d.
The Group and the Company are exposed to non-life, life and health underwriting risks. Accepted life reinsurance business of non-Group cedants, including accident reinsurance business, is classified as health underwriting risk. Due to its one-year duration and according to the nature of its coverage, this life reinsurance business is comparable to accepted accident reinsurance business.
First, we present underwriting risks arising out of non-life business. This is followed by risks arising out of life and health insurance business.
The breakdown of the Group’s gross non-life premiums did not change significantly in 2023. The Group’s largest premium volume is generated in Slovenia and the Adriatic region, where its direct insurance subsidiaries operate; exposure to Slovenia is predominant. Premiums are higher in 2023, and the share of the largest classes of insurance increased further in 2023. The Company’s other exposures are relatively well diversified globally.
The Group’s exposure to non-life measured by net (re)insurance contract liabilities is disclosed in note 16.8.9 “Insurance and reinsurance contract assets and liabilities”. As the Group as a whole has an adequate retrocession programme in place, it is not significantly exposed to the risk of a sharp increase in net claims, even in the event of catastrophe losses. More likely is an increase in net claims due to a mass of small adverse developments (an increase in claims or expenses or decrease in premiums) that would affect the net combined ratio.
The Company’s exposure to non-life underwriting risk, measured by the volume of gross non-life premiums, is shown in the following graph, by class of insurance.
The breakdown of the Company’s gross non-life (re)insurance premiums did not change significantly in 2023. The Company’s exposure to non-life underwriting risk measured by net (re)insurance contract liabilities is disclosed in note 16.8.9 “Insurance and reinsurance contract assets and liabilities”.
The Group and the Company manage non-life underwriting risks by:
The Group’s and the Company’s premium risk is assessed as moderate and slightly decreased compared to 2022. Uncertainties include claims inflation, which is somewhat lower in 2023 than in 2022 but remains high, and the increased frequency and severity of natural catastrophes. In the future, it will remain necessary to closely review the adequacy of the assumptions used and to react swiftly by adjusting premium rates to ensure that the Group achieves its planned results.
already taken steps to increase premium rates for motor and property insurance. Due to deteriorating macroeconomic conditions and the increased severity of natural catastrophes in recent years, reinsurance premium rates increased further in 2023, which has been beneficial for the management of premium risk in reinsurance underwriting.
The Group mitigates price risk by conducting detailed market analyses, monitoring the business environment (media, competitors, customers) and regulatory requirements, and monitoring historical claims trends (for the entire insurance market) and projections. In the case of obligatory proportional reinsurance treaties, SavaRe follows the fortune of its ceding companies, while with non-proportional and facultative contracts, the decision on assuming a risk is on Sava Re. It follows from the foregoing that in order to manage this risk, it is essential to review the practices of existing and future ceding companies and to analyse developments by market and class of insurance. Consequently, coverage may only be granted by following internal underwriting guidelines, and performance must be consistent with the target combined ratios, based on available information, prices set and other relevant contractual provisions. The suitability of pricing is verified through modelling and other detailed profitability reviews.
Another underwriting process risk is PML error, the inaccurate assessment of the probable maximum loss (PML). In order to mitigate this risk, the Group has in place guidelines for PML assessment, requirements that PML assessments are a team exercise, and ensures that the reinsurance programme covers PML error.
The Group mitigates claims risk through in-depth assessments of underwriting process risk, by restricting the authorisations in the underwriting process, and by developing IT support that allows an accurate overview of claims accumulation. For accepted reinsurance, this risk, too, can be managed by means of special clauses in proportional reinsurance contracts, which limit the reinsurer’s share of unexpected claims, and by not accepting unlimited layers under non-proportional contracts. Also central to reducing this risk is the annual testing of the appropriateness of reinsurance protection using a variety of stress tests and scenarios, and setting appropriate retentions. Retention levels and reinsurance protection for individual risks remained similar to the previous year in 2023.
The risk that the Group or the Company has insufficient insurance contract liabilities is assessed as medium and is slightly lower compared to 2022, as the level of insurance contract liabilities for all major portfolios has already been appropriately adjusted in 2022 for past and expected future inflation. Compared to the previous year, the inflation outlook for 2023 has also moderated somewhat. The risk is managed through the measures described below.
Insurance contract liabilities may be inadequate due to inaccurate actuarial estimates or unexpected adverse claims developments. This may be the result of new types of losses that are not excluded in cedants’ insurance conditions and for which no insurance contract liabilities have yet been established, which is common in liability insurance, but may also be due to changes in court practice. All the lessons learned from claims experience are then used to determine insurance contract liabilities in the future.
The adjustment of the assumptions for setting insurance contract liabilities in 2023 was affected by the change in the forecast of the expected future claims inflation and the higher severity of natural catastrophes, whereas the run-off analyses of the liability for incurred claims previously set show positive results in 2022.
Based on records and understanding of the process of calculating the insurance contract liabilities, potential risks are identified and described, such as the risks relating to:
Controls are put in place for the mitigation of each identified risk. These controls ensure data quality and mitigate the risks associated with the calculation of insurance contract liabilities.
The design and operational effectiveness of the controls are reviewed at least annually and whenever there is a significant change in the process or in the methods and models used to calculate insurance contract liabilities.
Such controls include:
The process by which insurance contract liabilities are calculated is subject to periodic approval. Where substantial changes have been made to the process, the methodology or models used in the calculation of insurance contract liabilities, a validation is carried out in accordance with the reporting schedule.
The Group establishes the liability for remaining coverage separately for each group of insurance contracts. In addition to the basic amount of liability for remaining coverage, Group companies establish a loss component if a contract is unprofitable (described in the accounting policies for insurance contracts).
The adequacy of the level of the liability for incurred claims is assessed using run-off analysis. This can only be applied to past years – the further back in time, the more precise the results.
As the liabilities for incurred claims are calculated using consistent actuarial methods, we can conclude from historical differences between originally estimated and subsequently established liabilities at various balance sheet dates that the liabilities as at 31 December 2023 are adequate.
The Group companies record and analyse data on liabilities for incurred claims by accident year. The following tables show, for each accident year represented by a column, the development of the estimated ultimate claims (gross, net) of each accident year in relation to the subsequent claims development. The values in the tables, except for the last row, are not discounted.
The data in the following tables are only presented from the transition to the new accounting standard onwards, because the data are insufficient for previous years because of the application of the premium allocation approach on a large part of the non-life portfolio and the fair value transition on certain parts of the portfolio measured using the general measurement model.
The actual claims development by accident year shows that the run-off of gross and net liabilities is predominantly positive. On the basis of the above, it can be concluded that the level of both the gross and net liabilities for incurred claims as at 31 December 2023 for accident years up to and including 2023 is adequate to cover the expected ultimate liabilities.
| Year ended 31 December | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Estimates of cumulative gross claims / At end of accident year | 500,689,696 | 617,042,478 | |||||||||
| Re-estimated as of 1 year later | 230,203,088 | 448,781,487 | |||||||||
| Re-estimated as of 2 years later | 145,496,372 | 213,530,184 | |||||||||
| Re-estimated as of 3 years later | 113,899,060 | 136,746,105 | |||||||||
| Re-estimated as of 4 years later | 57,209,581 | 109,242,100 | |||||||||
| Re-estimated as of 5 years later | 36,001,013 | 53,606,089 |
| 25,915,715 | 36,125,255 |
|---|---|
| 18,097,114 | 25,247,364 |
|---|---|
| 8,460,995 | 16,303,107 |
|---|---|
8,155,280
| 2,116,604 | 7,737,146 | 9,236,733 | 14,941,662 | 44,423,306 | 73,878,548 | 90,140,998 | 148,658,528 | 354,986,526 | 333,324,882 |
|---|---|---|---|---|---|---|---|---|---|
| 6,038,677 | 8,565,961 | 16,010,631 | 21,183,593 | 9,182,783 | 35,363,552 | 46,605,108 | 64,871,656 | 93,794,961 | 283,717,596 | 585,334,517 |
|---|---|---|---|---|---|---|---|---|---|---|
50,274,000
| Year ended 31 December | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Estimates of cumulative gross claims | 169,061,145 | 212,673,761 | / | / | / | / | / | / | / | / | / |
| Re-estimated as of 1 year later | 146,929,663 | 147,952,242 | / | / | / | / | / | / | / | / | / |
| Re-estimated as of 2 years later | 139,395,365 | 142,244,502 | / | / | / | / | / | / | / | / | |
| Re-estimated as of 3 years later | 87,849,200 | 133,882,140 | / | / | / | / | / | / | / | / | |
| Re-estimated as of 4 years later | 46,513,996 | 83,888,748 | / | / | / | / | / | / | / | / |
| 22,627,306 | 44,500,791 |
|---|---|
| 15,006,426 | 23,307,159 |
|---|---|
| 11,049,935 | 16,680,787 |
|---|---|
| 4,304,617 | 10,490,659 |
|---|---|
4,427,627
| 1,886,243 | 6,148,395 | 8,877,032 | 13,232,488 | 44,681,445 | 70,342,897 | 109,453,203 | 102,773,167 | 91,756,916 | 48,891,504 |
|---|---|---|---|---|---|---|---|---|---|
| 2,541,384 | 4,342,263 | 7,803,755 | 10,074,671 | -180,653 | 13,545,851 | 24,428,937 | 39,471,335 | 56,195,326 | 163,782,257 | 322,005,126 |
|---|---|---|---|---|---|---|---|---|---|---|
-24,923,864
327,444,460
| Year ended 31 December | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Estimates of cumulative net claims | 451,674,080 | 511,082,147 | / | / | / | / | / | / | / | / | / |
| Re-estimated as of 1 year later | 201,176,093 | 399,223,599 | / | / | / | / | / | / | / | / | / |
| Re-estimated as of 2 years later | 127,707,372 | 196,059,983 | / | / | / | / | / | / | / | / | / |
| Re-estimated as of 3 years later | 108,871,233 | 117,790,838 | / | / | / | / | / | / | / | / | / |
| 52,841,279 | 103,146,740 |
|---|---|
| 31,937,374 | 49,572,590 |
|---|---|
| 23,707,304 | 31,558,767 |
|---|---|
| 16,774,637 | 20,988,946 |
|---|---|
| 8,093,105 | 14,851,180 |
|---|---|
| 7,719,231 | |
|---|---|
| 2,066,574 | 6,894,765 | 8,475,047 | 13,550,319 | 40,807,862 | 68,501,220 | 75,495,582 | 139,686,636 | 312,693,928 | 297,719,286 |
|---|---|---|---|---|---|---|---|---|---|
| 5,652,657 | 7,956,415 | 12,513,899 |
|---|---|---|
| Year ended 31 December | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Estimates of cumulative net claims | 132,617,573 | 127,557,006 | / | / | / | / | / | / | / | / | / |
| Re-estimated as of 1 year later | 121,436,721 | 113,579,157 | / | / | / | / | / | / | / | / | |
| Re-estimated as of 2 years later | 124,993,433 | 126,385,345 | / | / | / | / | / | / | / | / | |
| Re-estimated as of 3 years later | / | / | / | / | / | / | / | / | / | / |
Net liabilities for prior accident years: 35,369,838
Effect of discounting: -51,268,299
Net liabilities for incurred claims included in the statement of financial position: 470,204,342
18,008,448
8,764,728
34,645,521
42,295,256
56,373,347
86,529,671
213,362,861
| Year | Amount |
|---|---|
| 4 years later | 83,429,967 |
| 5 years later | 42,960,816 |
| 6 years later | 19,811,338 |
| 7 years later | 13,240,849 |
| 8 years later | 10,178,062 |
| 9 years later | 4,050,048 |
65,035,22097,504,95196,635,42662,726,19525,672,840
15,778,780
-21,643,141
228,833,966
The lapse risk in 2023 for both Sava Re and the Group is assessed as low and comparable to the previous year. It is estimated that lapse risk is less important for the Group, as the vast majority of non-life insurance policies is written for one year and cannot be terminated early without the insurer’s consent (except in case of premium default or if the subject-matter of the insurance policy is no longer owned by the policyholder or has been destroyed due to a loss event). The majority of accepted reinsurance contracts is also written for a period of one year. This risk is mitigated primarily by maintaining good relationships with policyholders and cedants and by closely analysing market conditions.
We assess the Group’s catastrophe risk in 2023 to be moderate and (given the size of the insurance portfolios) slightly higher than in the previous year because of the increasing severity of natural catastrophes. We also rate the same risk for Sava Re as moderate.
The Group manages catastrophe risk by means of a well-designed underwriting process, by controlling risk concentration for products covering larger complexes against natural catastrophes and fire, by geographical diversification, and by adequate retrocession protection against natural and man-made catastrophes. In managing these risks, due consideration is given to the fact that maximum net aggregate losses in any one year are affected by both the maximum net claim arising from a single catastrophe event and the frequency of such events.
An appropriate reinsurance programme is important for managing the underwriting risk to which the Group is exposed. The Group uses retrocession treaties to ensure adequate risk diversification. The reinsurance programme is set up to reduce exposure to potential single large losses or the effect of a large number of single losses arising from the same loss event. The Group considers its reinsurance programme (including proportional and non-proportional reinsurance) to be appropriate in view of the risks to which it is exposed. Net retention limits set by the Group are only rarely applied. The Group also concludes co-insurance and reciprocal contracts with other reinsurers to further disperse risks.
We consider natural catastrophe risk to be the most significant catastrophe risk to which non-life insurance is exposed. Sava Re has the highest exposure to natural catastrophes in Slovenia, whereas exposures elsewhere are relatively well-diversified globally.
| Country | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Slovenia | 472,942,000 | 492,219,081 |
| China | 48,183,550 | 52,183,589 |
| Greece | 36,075,000 | 38,643,718 |
| Taiwan | 32,530,091 | 34,664,109 |
| Vietnam | 30,842,603 | 32,579,445 |
| Germany | 30,300,050 | 32,408,102 |
| Philippines | 32,408,102 | 30,298,091 |
| India | 30,298,091 | 31,840,502 |
| Austria |
| Country | 2023 (EUR thousand) | 2022 (EUR thousand) |
|---|---|---|
| Flood | 15,060,648 | 12,891,510 |
| Earthquake | 18,566,047 | 15,159,157 |
| Storm and hail | 56,534,206 | 53,163,175 |
For non-life insurance, we have assumed a change in the gross claims ratio and restated the impact on profit or loss and AOCI. The effects shown in the following tables are net of income tax. The calculation of effects for the Sava Insurance Group and Sava Re are shown separately.
| Sava Insurance Group | EUR | Profit or loss | AOCI | Change in assumptions |
|---|---|---|---|---|
| Gross | Net | Gross | Net | |
| Gross loss ratio +10% | -62,157,036 | -52,020,629 | -79,090 | -83,065 |
| Gross loss ratio -10% | 55,574,989 | 45,515,666 | 79,171 | 83,145 |
| Sava Insurance Group | EUR | Profit or loss | AOCI | Change in assumptions |
|---|---|---|---|---|
| Gross | Net | Gross | Net | |
| Gross loss ratio +10% | -49,199,635 | -44,681,935 | 465,357 |
-10%
44,819,055
40,311,208
-465,357
-392,791
Most of the effect of a change in the gross loss ratio is reflected in the income statement, while the direct effect of this type of sensitivity analysis on equity is small. The effect on profit or loss as at 31 December 2023 is higher than as at 31 December 2022 as a result of portfolio growth.
| Change in assumptions | Profit or loss Gross | Profit or loss Net | AOCI Gross | AOCI Net |
|---|---|---|---|---|
| Gross loss ratio +10% | -21,261,342 | -12,615,739 | 39,956 | 34,039 |
| Gross loss ratio -10% | 21,064,541 | 12,418,939 | -39,956 | -34,039 |
| Change in assumptions | Profit or loss Gross | Profit or loss Net | AOCI Gross | AOCI Net |
|---|---|---|---|---|
| Gross loss ratio +10% | -16,687,588 | -12,807,618 | 361,530 | 289,911 |
| Gross loss ratio -10% | 16,472,585 | 12,592,616 | -361,530 | -289,911 |
Most of the effect of a change in the gross loss ratio is reflected in the income statement, the direct effect of this type of sensitivity analysis on AOCI is small. The effect as at 31 December 2023 on profit or loss has remained at the same level as at 31 December 2022.
The Group’s non-life underwriting risk is assessed as moderate. In 2023, the premium risk remains at a similar level to 2022, while the reserve risk slightly decreased in 2023 and the catastrophe risk slightly increased compared to 2022. We believe that the risks to which the Sava Insurance Group and Sava Re are exposed are adequately managed. According to our assessment, the likelihood that the non-life underwriting risk would seriously compromise the Group’s or the Company’s financial stability is estimated as low.
The main life underwriting risks relevant for Sava Re and the Group are the mortality risk, life expense risk and lapse risk (which includes terminations due to surrenders, changes to paid-up status and defaults).
The Group is moderately exposed to life underwriting risk. The Group’s main exposure to life underwriting risk is in the EU. The following chart shows the structure of the Group’s gross life insurance premiums by class of business.
The Company’s exposure to life underwriting risk is low. In 2023, gross reinsurance premiums for traditional life insurance amounted to EUR 1,242 thousand (2022: EUR 1,202 thousand) and gross unit-linked life insurance premiums were EUR 86 thousand (2022: EUR 95 thousand).
The Group’s and the Company’s exposure to life underwriting risk measured by net (re)insurance contract liabilities is disclosed in note 16.8.9 “Insurance and reinsurance contract assets and liabilities”.
Life underwriting risks are also managed by periodically monitoring the life portfolio composition, exposures, premium payment patterns, lapse rates and expenses incurred, as well as by analysing the appropriateness of the modelling of the expected mortality and morbidity, and lapse rates. The information so obtained allows for timely action in the case of adverse developments in these indicators.
The Group additionally manages life underwriting risk by strictly following underwriting and risk assessment procedures. These specify the criteria and terms of approving risk acceptance. At given premium rates, risk assumption depends on the age at entry and the requested sum insured. The Group accepts a risk if the health of the insured, as a measure of the quality of the risk, meets the criteria set out in the medical underwriting table. An additional factor in the assumption of risks is lifestyle, including leisure activities and occupation. The Group has in place an appropriate reinsurance programme in order to limit the impact of underwriting risk (death and additional risks); covers are generally on a proportional basis. The retention of insurance companies does not exceed EUR 100,000.
For life insurance, we have assumed a change in the assumptions for mortality rates, morbidity and disability rates, longevity rates, expenses and lapse rates. The change in assumptions for longevity rates also takes into account the annuities of Sava Pokojninska Družba. We have restated the effect on profit or loss and AOCI. The effects shown in the following tables are net of income tax.
| Change in assumptions | Profit or loss | AOCI |
|---|---|---|
| Mortality rates +10% | Gross: -240,381 Net: -240,381 | Gross: -4,544 Net: -5,063 |
| Mortality rates -10% | Gross: 158,663 Net: 158,663 | Gross: 21,676 Net: 22,541 |
| Morbidity and disability rates +10% | Gross: -49,745 Net: -49,745 | Gross: 425,013 Net: 425,011 |
| Morbidity and disability rates -10% | Gross: 32,577 Net: 32,577 | Gross: -425,531 Net: -425,529 |
| Longevity rates +10% | Gross: 152,901 Net: 152,901 | Gross: -38,642 Net: -38,642 |
| Longevity rates -10% | Gross: -179,618 Net: -179,618 | Gross: 42,602 Net: 42,602 |
| Expenses +10% | Gross: -568,313 |
| Change in assumptions | Profit or loss | AOCI | Gross | Net |
|---|---|---|---|---|
| Mortality rates +10% | -300,785 | -300,785 | 116,185 | 114,888 |
| Mortality rates -10% | 221,403 | 221,403 | -128,136 | -126,826 |
| Morbidity and disability rates +10% | -56,640 | -56,640 | 483,965 | 483,962 |
| Morbidity and disability rates -10% | 41,754 | 41,754 | -484,263 | -484,260 |
| Longevity rates +10% | 209,636 | 209,636 | -75,813 | -75,813 |
| Longevity rates -10% | -218,430 | -218,430 | 57,039 | 57,039 |
| Expenses +10% | -432,469 | -432,469 | 724,327 | 724,327 |
| Expenses -10% | 285,202 | 285,202 | -712,643 | -712,643 |
| Lapse rates +10% | 63,757 | 63,757 | -1,619,506 | -1,663,104 |
-10%
-85,636
-85,636
1,835,820
1,884,046
Based on the sensitivity analysis performed, it can be concluded that the sensitivities performed do not have a material impact on profit or loss. The direct effect on AOCI as at 31 December 2023 is greatest for the change in the lapse rate.
Most of the exposure to health underwriting risk relates to accident insurance classified as NSLT health insurance, but the exposure to SLT health insurance is very small. NSLT health underwriting risks are inherently very similar to non-life underwriting risks and are therefore discussed in greater detail in section 16.7.3.1 “Non-life underwriting risks”. The Group manages NSLT health underwriting risks through similar techniques, i.e. by means of a well-designed underwriting process, control of risk concentration for accident and health insurance products, and adequate reinsurance protection.
SLT health underwriting risks are very similar in nature to life underwriting risks, and are therefore managed by the Group using similar techniques. These are discussed in more detail in section 16.7.3.2 “Life underwriting risks”. These insurances were taken into account in our sensitivity analysis for life underwriting risks.
We consider the Group’s and the Company’s exposure to health underwriting risk in 2023 small and comparable to 2022.
The Company’s financial operations expose it to financial risks arising from its investment portfolio, including market, liquidity and credit risks. The value of the investment portfolio includes the following balance sheet items: financial investments, investment property, investments in associates and subsidiaries, and cash and cash equivalents. As at 31 December 2023, the carrying amount of this investment portfolio stood at EUR 2,111.8 million (31 December 2022: EUR 1,914.0 million).
A more detailed presentation of the portfolio’s carrying amount is shown in the following table, separately for the investment portfolio supporting non-life and traditional life insurance liabilities (investments other than investments supporting direct participating contracts) and the investment portfolio supporting unit-linked life insurance liabilities (investments supporting direct participating contracts).
| Sava Insurance Group | EUR | ||
|---|---|---|---|
| Investments other than investments supporting direct participating contracts | Investments supporting direct participating contracts | Total | |
| Deposits and CDs | 25,616,171 | 0 | 25,616,171 |
| Government bonds | 819,083,092 | 32,439,945 | 851,523,037 |
| Corporate bonds | 457,727,881 | 20,560,202 | 478,288,083 |
| Shares (excluding strategic shares) | 21,754,273 | 0 | 21,754,273 |
| Mutual funds | 18,564,549 | 544,804,326 | 563,368,876 |
| Bond and money market | 13,293,605 | 47,248,244 | 60,541,849 |
| Mixed | 0 | 113,793,106 | 113,793,106 |
| Equity funds | 5,270,945 | 383,762,976 | 389,033,921 |
| Infrastructure funds | 57,339,858 | 0 | 57,339,858 |
| Real estate funds | 13,888,193 | 0 | 13,888,193 |
| Loans granted and other investments | 754,140 | 0 | 754,140 |
| Financial investments | 1,414,728,158 | 597,804,473 | 2,012,532,631 |
| Financial investments in associates | 23,834,620 | 0 | 23,834,620 |
| Investment property | 24,890,276 |
| EUR | Investments other than investments supporting direct participating contracts | Investments supporting direct participating contracts | Total |
|---|---|---|---|
| Deposits and CDs | 18,848,260 | 0 | 18,848,260 |
| Government bonds | 734,273,049 | 30,417,030 | 764,690,079 |
| Corporate bonds | 420,528,608 | 20,369,770 | 440,898,378 |
| Shares (excluding strategic shares) | 24,883,922 | 0 | 24,883,922 |
| Mutual funds | 22,157,732 | 433,105,447 | 455,263,179 |
| Bond and money market | 14,095,023 | 43,558,846 | 57,653,869 |
| Mixed | 0 | 92,506,399 | 92,506,399 |
| Equity funds | 8,062,709 | 297,040,201 | 305,102,910 |
| Infrastructure funds | 53,856,376 | 0 | 53,856,376 |
| Real estate funds | 16,497,061 | 0 | 16,497,061 |
| Loans granted and other investments | 1,194,821 | 0 | 1,194,821 |
| Financial investments | 1,292,239,830 | 483,892,247 | 1,776,132,077 |
| Financial investments in associates | 21,856,109 | 0 | 21,856,109 |
| Investment property | 22,795,760 | 0 | 22,795,760 |
| Cash and cash equivalents | 78,339,699 | 14,883,930 | 93,223,629 |
| Investment portfolio | 1,415,231,398 | 498,776,177 | 1,914,007,575 |
| Item | 31 December 2023 | As % of total | 31 December 2022 | As % of total | Absolute difference | % change (p.p.) |
|---|---|---|---|---|---|---|
| Deposits and CDs | 1,021,347 | 0.1% | 0 | 0% | 1,021,347 | 0.1 |
| Government bonds | 229,591,819 | 32.8% | 214,198,680 | 31.50% | 15,393,139 | 1.3 |
| Corporate bonds | 88,089,961 | 12.6% | 73,992,930 | 10.90% | 14,097,031 | 1.7 |
| Shares (excluding strategic shares) | 3,538,972 | 0.5% | 7,080,606 | 1.00% | -3,541,634 | -0.5 |
| Mutual funds | 4,458,315 | 0.6% | 3,933,982 | 0.60% | 524,333 | 0.0 |
| Bond funds | 2,397,194 | 0.3% | 2,246,501 | 0.30% | 150,693 | 0.0 |
| Equity funds | 2,061,121 | 0.3% | 1,687,481 | 0.20% | 373,640 | 0.1 |
| Infrastructure funds | 21,084,448 | 3.0% | 18,843,871 | 2.80% | 2,240,577 | 0.2 |
| Real estate funds | 3,884,428 | 0.6% | 4,584,214 | 0.70% | -699,786 | -0.1 |
| Loans granted | 2,714,904 | 0.4% | 1,796,693 | 0.30% | 918,211 | 0.1 |
| Financial investments | 354,384,196 | 50.7% | 324,430,976 | 47.80% | 29,953,220 | 2.9 |
| Financial investments in Group companies | 325,241,793 | 46.5% | 322,935,793 |
As part of the management of market risk, the Group and the Company assess interest rate risk, property price risk, equity price risk and currency risk. The following table shows the Group’s investments exposed to market risk (investment portfolio excluding cash and cash equivalents).
| Type of investment | 31 December 2023 | As % of total | 31 December 2022 | As % of total | Absolute change | % change (p.p.) |
|---|---|---|---|---|---|---|
| Deposits and CDs | 25,616,171 | 1.2% | 18,848,260 | 1.0% | 6,767,911 | 0.2 |
| Government bonds | 819,083,092 | 39.7% | 734,273,049 | 40.3% | 84,810,043 | -0.6 |
| Corporate bonds | 457,727,881 | 22.2% | 420,528,608 | 23.1% | 37,199,273 | -0.9 |
| Shares (excluding strategic shares) | 21,754,273 | 1.1% | 24,883,922 | 1.4% | -3,129,649 | -0.3 |
| Mutual funds (excluding underlying financial investments) | 18,564,549 | 0.9% | 22,157,732 | 1.2% | -3,593,183 | -0.3 |
| Bond and money market | 13,293,605 | 0.6% | 14,095,023 | 0.8% | -801,418 | -0.2 |
| Mixed | 0 | 0.0% | 0 | 0.0% | 0 | 0.0 |
| 5,270,945 | 0.3% | 8,062,709 | 0.4% | -2,791,764 | -0.1 |
|---|---|---|---|---|---|
| 57,339,858 | 2.8% | 53,856,376 | 3.0% | 3,483,482 | -0.2 |
|---|---|---|---|---|---|
| 13,888,193 | 0.7% | 16,497,061 | 0.9% | -2,608,868 | -0.2 |
|---|---|---|---|---|---|
| 754,140 | 0.0% | 1,194,821 | 0.1% | -440,681 | -0.1 |
|---|---|---|---|---|---|
| 597,804,473 | 29.0% | 483,892,247 | 26.6% | 113,912,226 | 2.4 |
|---|---|---|---|---|---|
| 2,012,532,631 | 97.6% | 1,776,132,077 | 97.5% | 236,400,554 | 0.1 |
|---|---|---|---|---|---|
| 23,834,620 | 1.2% | 21,856,109 | 1.2% | 1,978,511 | 0.0 |
|---|---|---|---|---|---|
| 24,890,276 | 1.2% | 22,795,761 | 1.3% | 2,094,515 | -0.1 |
|---|---|---|---|---|---|
| 2,061,257,527 | 100.0% | 1,820,783,947 | 100.0% | 240,473,580 | 0.0 |
|---|---|---|---|---|---|
| 2,037,422,907 | 1,798,927,838 |
|---|---|
The value of the Group’s investments portfolio exposed to market risk increased by EUR 240.5 million in 2023 compared to year-end 2022, which is explained in section 8.1.3.4 “Investment portfolio” of the business report part (first part of the annual report). The following table shows the Group’s and the Company’s investments exposed to market risk (investment portfolio excluding cash and cash equivalents).
| Category | Current Amount | Current % | Previous Amount | Previous % | % Change (p.p.) |
|---|---|---|---|---|---|
| Deposits and CDs | 1,021,347 | 0.1% | 0 | 0.0% | 1,021,347 |
| Government bonds | 229,591,819 | 33.4% | 214,198,680 | 32.7% | 15,393,139 |
| Corporate bonds | 88,089,961 | 12.8% | 73,992,930 | 11.3% | 14,097,031 |
| Shares (excluding strategic shares) | 3,538,972 | 0.5% | 7,080,606 | 1.1% | -3,541,634 |
| Mutual funds | 4,458,315 | 0.6% | 3,933,982 | 0.6% | 524,333 |
| Bond and money market | 2,397,194 | 0.3% | 2,246,501 | 0.3% | 150,693 |
| Equity funds | 2,061,121 | 0.3% | 1,687,481 | 0.3% | 373,640 |
| Infrastructure funds | 21,084,448 | 3.1% | 18,843,871 | 2.9% | 2,240,577 |
| Real estate funds | 3,884,428 | 0.6% | 4,584,214 | 0.7% | -699,786 |
| Loans granted | 2,714,904 | 0.4% | 1,796,693 | 0.3% | 918,211 |
| Financial investments | 354,384,196 | 51.6% | 324,430,976 | 49.5% | 29,953,220 |
| Financial investments in associates | 325,241,793 | 47.3% | 322,935,793 | 49.3% | 2,306,000 |
| Investment property | 7,582,168 | 1.1% |
The value of the Company’s financial investments exposed to market risk decreased by EUR 140 thousand in 2023 compared to year-end 2022, which is explained in section 8.2.3.4 “Investment portfolio” of the business report part (first part of the annual report).
Interest rate risk is measured through sensitivity analysis, which measures the change in value of interest rate sensitive investments and the change in value of insurance contract liabilities when interest rates change by 1 p.p. or 100 basis points.
The interest rate sensitive portion of the Group’s and the Company’s investment portfolio includes government and corporate bonds, deposits, loans, bond and mixed mutual funds covering non-life and traditional life insurance and reinsurance contract liabilities, including insurance contract liabilities of direct participating contracts.
On the liabilities side, all liabilities arising from (re)insurance contracts are included in line with the IFRS 17 valuation. In the table, assets and liabilities relating to non-life and traditional life insurance business are shown together, whereas assets and liabilities relating to life insurance where policyholders bear the investment risk are shown separately under direct participating contracts.
The Group’s investment portfolio, excluding investments in direct participating contracts, also includes variable-rate investments. These investments are linked to a 3-month EURIBOR and therefore the Company has not recorded the effects of the benchmark reform (IBOR), which provides for the substitution of certain interest rate benchmarks. It holds no other variable-rate investments. The Group does not have any variable-rate liabilities.
| Sava Insurance Group | EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|---|
| Financial investments | 1,315,373,623 | 1,188,938,775 | |
| – Fixed-income investments | 1,314,567,547 | 1,182,673,414 | |
| – Variable-rate investments | 806,076 | 6,265,361 | |
| Investments supporting direct participating contracts* | 159,707,518 | 140,505,540 | |
| – Fixed-income investments | 159,707,518 | 140,505,540 | |
| – Variable-rate investments | 0 | 0 | |
| Financial liabilities | 0 | -56,290,346 | |
| Total financial investments | 1,475,081,141 | 1,273,153,969 | |
| Insurance and reinsurance contracts | |||
| (Re)insurance contract liabilities (other than for direct participating contracts) | 1,065,741,226 | 1,006,526,331 | |
| (Re)insurance contract assets (other than for direct participating contracts) | -115,630,856 | -75,271,982 | |
| Direct participating contracts | 586,910,698 | 478,840,441 | |
| Total insurance and reinsurance contracts | 1,537,021,068 | 1,410,094,790 |
The total value of the Group’s interest rate sensitive investments at 31 December 2023 was EUR 1,475.1 million (31 December 2022: EUR 1,273.2 million). The value of interest rate sensitive liabilities at 31 December 2023 was EUR 1,537.0 million (31 December 2022: EUR 1,410.1 million).
The value of investments other than investments supporting direct participating contracts (31 December 2023: EUR 1,315.4 million; 31 December 2022: EUR 1,188.9 million) is significantly above insurance and reinsurance contract liabilities (31 December 2023: EUR 950.1 million; 31 December 2022: EUR 931.3 million), due to interest rate sensitive investments of the Group companies’ own funds, which are not immediately intended to cover insurance and reinsurance liabilities. The higher value of (re)insurance contract assets in relation to (re)insurance contract liabilities also affects the higher sensitivity of insurance contract assets. In managing these investments, Group companies ensure that the maturities of the investments match those of the liabilities.
The lower value of the investments underlying direct participating contracts compared to the corresponding liabilities is due to the fact that only interest rate sensitive investments (bonds, bond mutual funds) with a total value of EUR 159.7 million are shown among the investments underlying direct participating contracts (31 December 2022: EUR 140.5 million), whereas all the assets and liabilities relating to direct participating contracts are interest rate sensitive.
| Financial investments | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Investments other than investments supporting direct participating contracts, of which | 322,793,879 | 291,928,359 |
| – Fixed-income investments | 322,290,081 | 291,927,867 |
| – Variable-rate investments | 503,797 | 492 |
| Investments supporting direct participating contracts, of which | 0 | 0 |
| – Fixed-income investments | 0 | 0 |
| – Variable-rate investments | 0 | 0 |
| Financial liabilities | -58,702,709 | -56,290,346 |
| Total financial investments | 264,091,170 | 235,638,013 |
| Insurance and reinsurance contracts | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Insurance and reinsurance contract liabilities (other than for direct participating contracts) | 296,199,571 | 272,734,094 |
| Insurance and reinsurance contract assets | -100,857,965 | -64,296,545 |
| Total insurance and reinsurance contracts | 195,341,606 | 208,437,549 |
The total value of the Company’s interest rate sensitive investments at 31 December 2023 was EUR 264.1 million (31 December 2022: EUR 235.6 million). The value of interest rate sensitive liabilities and assets at 31 December 2023 was EUR 195.3 million (31 December 2022: EUR 208.4 million).
The value of interest rate sensitive investments (31 December 2023: EUR 322.8 million; 31 December 2022: EUR 291.9 million) is significantly above the value of insurance and reinsurance contract assets and liabilities (31 December 2023: EUR 195.3 million; 31 December 2022: EUR 208.4 million), due to interest rate sensitive investments of the Company’s own funds, which are not immediately intended to cover insurance and reinsurance liabilities. The excess of investments over liabilities increases the Company’s sensitivity to changes in interest rates. In managing these investments, the Company ensures that the maturities of the investments match those of the liabilities.
The sensitivity analysis for interest rate risk shows separately the impact on profit or loss and AOCI in the event of a 100 basis point increase or decrease in interest rates, on a pre-tax basis. The total impact of both the contract value and the related investments of this portfolio is already presented under “Direct participating contracts and investments supporting direct participating contracts”. The impact of a change in interest rates on an insurer’s profit or loss or AOCI depends on the IFRS category of each interest rate sensitive investment. In accordance with the accounting policies adopted by the Group companies, the majority of the changes in value of the items are recognised in AOCI with only a minor impact on profit or loss.
| Sava Insurance Group | Profit or loss | AOCI | |||
|---|---|---|---|---|---|
| Increase(+100 bps) | Decrease(-100 bps) | Increase(+100 bps) | Decrease(-100 bps) | ||
| 31 December 2023 | Insurance and reinsurance contracts (other than direct participating contracts) | 346,437 | -395,100 | 24,637,677 | -28,600,218 |
| Financial investments (other than those supporting direct participating contracts) | -750,810 | 806,026 | -39,299,988 | 42,529,399 | |
| Direct participating contracts and investments supporting direct participating contracts | 82,634 | -132,489 | -130,533 | 136,910 | |
| -321,738 | 278,438 |
| Insurance and reinsurance contracts (other than direct participating contracts) | -14,792,844 | 14,066,091 | |
|---|---|---|---|
| Financial investments (other than those supporting direct participating contracts) | -998,031 | 912,825 | |
| Direct participating contracts and investments supporting direct participating contracts | -99,175 | 91,240 | |
| -108,573 | 114,447 | ||
| -751,088 | 606,804 | ||
| -18,161,358 | 11,354,207 |
As can be seen from the results, an increase in interest rates has a negative effect, while a decrease in interest rates has a positive effect, mainly on the Company’s AOCI.
Interest rate risk was slightly lower in 2023 compared to the previous year, mainly due to the shorter duration of interest rate sensitive investments.
The average maturity of bonds and deposits of non-life business was 3.6 years at year-end 2023 (31 December 2022: 3.2 years), while the expected maturity of non-life liabilities was 2.2 years (31 December 2022: 2.1 years).
The average maturity of bonds and deposits supporting the life business was 4.0 years at year-end 2023 (31 December 2022: 4.6 years), and the expected maturity of life insurance liabilities was 7.5 years (31 December 2022: 7.5 years).
The following table shows the results of the sensitivity analysis for Sava Re.
| Sava Re | EUR | Profit or loss | AOCI128 | Increase(+100 bps) | Decrease(-100 bps) | Increase(+100 bps) | Decrease(-100 bps) |
|---|---|---|---|---|---|---|---|
| 31 December 2023 | Insurance and reinsurance contracts | 0 | 0 | 4,157,916 | -4,639,531 | ||
| Financial investments | -263,249 | 273,031 | -7,766,939 | 7,166,405 | |||
| -263,249 | 273,031 | -3,609,023 | 2,526,874 | ||||
| 31 December 2022 (restated) | Insurance and reinsurance contracts | 0 | 0 | 4,018,749 | -4,478,846 | ||
| Financial investments | -267,618 | 284,609 | -7,668,485 | 8,099,557 | |||
| -267,618 | 284,609 | -3,649,736 | 3,620,711 |
As can be seen from the results, an increase in interest rates has a negative effect, while a decrease in interest rates has a positive effect, mainly on the Company’s AOCI.
Overall interest rate sensitivity decreased slightly compared to the previous year, whereas the expected volatility of market interest rates remained elevated due to macroeconomic conditions. There was no impact on the income statement for insurance and reinsurance contracts. This is because no new reinsurance contracts were recognised in the last month.
We estimate that the interest rate risk remained at about the same level as the previous year.
The Group and the Company are exposed to the risk of change in the market value of property investments as part of the risks affecting the investment portfolio. In addition to investment property, real estate funds shown as alternative investments under financial investments are also exposed to this risk.
| EUR | 31 December 2023 | As % of total | 31 December 2022 | As % of total | Absolute change | % change (p.p.) |
|---|---|---|---|---|---|---|
| Investment property | 24,890,276 | 1.67% | 22,795,761 | 1.70% | 2,094,515 | 0.0 |
| Real estate funds | 13,888,193 | 0.93% | 16,497,061 | 1.20% | -2,608,868 | -0.3 |
| Total | 38,778,469 | 2.60% | 39,292,822 | 2.9% | -514,353 | 0.0 |
| EUR | 31 December 2023 | As % of total | 31 December 2022 | As % of total | Absolute change | % change (p.p.) |
|---|---|---|---|---|---|---|
| Investment property | 7,582,168 | 1.1% | 7,721,693 | 1.10% | -139,525 | 0.0 |
| Real estate funds | 3,884,428 | 0.6% | 4,584,214 | 0.70% | -699,786 | -0.1 |
| Total | 11,466,596 | 1.6% | 12,305,907 | 1.8% | -839,311 | -0.2 |
As at 31 December 2023, the value of the Group’s investments exposed to investment property price risk was EUR 38.8 million (31 December 2022: EUR 39.3 million), a decrease of EUR 0.5 million compared to the previous period. As at 31 December 2023, the value of the Company’s investments exposed to investment property price risk was EUR 11.5 million (31 December 2022: EUR 12.3 million), a decrease of EUR 0.8 million compared to the previous period.
The risk was assessed through a sensitivity analysis to a 15% decrease in the value of the investments. The result is shown in the following two tables, separately for the Group and Sava Re.
| EUR | Profit or loss | AOCI | Increase(+15%) | Decrease(-15%) | Increase(+15%) | Decrease(-15%) |
|---|---|---|---|---|---|---|
| 31 December 2023 | Investment property | 3,733,541 | -3,733,541 | 0 |
| 31 December 2022 (restated) | Investment property | 3,419,364 | -3,419,364 | 0 | 0 | ||
|---|---|---|---|---|---|---|---|
| Real estate funds | 2,474,559 | -2,474,559 | 0 | 0 | |||
| 5,893,923 | -5,893,923 | 0 | 0 |
| Profit or loss | AOCI | Profit or loss | AOCI | EUR | Profit or loss | AOCI | |||
|---|---|---|---|---|---|---|---|---|---|
| Increase(+15%) | Decrease(-15%) | Increase(+15%) | Decrease(-15%) | 31 December 2023 | Investment property | 1,137,325 | -1,137,325 | 0 | 0 |
| Real estate funds | 582,664 | -582,664 | 0 | 0 | |||||
| 1,719,989 | -1,719,989 | 0 | 0 |
| Investment property | 1,158,254 | -1,158,254 | 0 | 0 |
|---|---|---|---|---|
| Real estate funds | 687,632 | -687,632 | 0 | 0 |
| 1,845,886 | -1,845,886 | 0 | 0 |
Assets exposed to the risk include shares, equity and mixed mutual funds (the sensitivity analysis takes into account half of the value), alternative funds (infrastructure) and ETFs. Unlink the bond portfolio, which moves inversely to interest rates, the value of equities and mutual funds changes linearly with stock prices. Equity price risk is measured by a sensitivity analysis, i.e., the change in the value of such investments in case of a 20% change.
| Entity | EUR | As % of total | 31 December 2023 | 31 December 2022 | As % of total | 31 December 2022 | Absolute change 31 December 2023 - 31 December 2022 | % change (p.p.) |
|---|---|---|---|---|---|---|---|---|
| Financial investments | 525,024,525 | 25.5% | 430,096,408 | 23.6% | 94,928,117 | 1.9 | ||
| Shares | 21,754,273 | 1.1% | 24,883,922 | 1.4% | -3,129,649 | -0.3 | ||
| of which Slovenian shares | 5,593,016 | 0.3% | 9,844,715 | 0.5% | -4,251,699 | -0.2 | ||
| Equity and mixed mutual funds | 5,270,865 | 0.3% | 8,062,709 | 0.4% | -2,791,844 | -0.1 | ||
| Infrastructure funds | 57,339,858 | 2.8% | 53,856,376 | 3.0% | 3,483,482 | -0.2 | ||
| Investments supporting direct participating contracts* | 440,659,529 | 21.4% | 343,293,401 | 18.9% | 97,366,128 | 2.5 |
| Direct participating contracts | 586,910,698 | 478,840,441 | 108,070,257 |
|---|---|---|---|
| Total insurance and reinsurance contracts | 586,910,698 | 478,840,441 | 108,070,257 |
| Category | Absolute change 31 December 2023 - 31 December 2022 | % change (p.p.) |
|---|---|---|
| Shares | 3,538,972 | 0.5% |
| 7,080,606 | 1.10% | |
| -3,541,634 | -0.6 | |
| of which Slovenian shares | 3,298,739 | 0.5% |
| 6,892,061 | 1.10% | |
| -3,593,322 | -0.6 | |
| Equity mutual funds | 2,061,121 | 0.3% |
| 1,687,481 | 0.30% | |
| 373,640 | 0.0 | |
| Infrastructure funds | 21,084,448 | 3.1% |
| 18,843,871 | 2.90% | |
| 2,240,577 | 0.2 | |
| Total | 26,684,541 | 3.88% |
| 27,611,958 | 4.2% | |
| -927,417 | -0.4 |
The Company’s assets exposed to equity price risk include equities, equity mutual funds, and infrastructure funds. Investments in subsidiaries and associates are disclosed in section 16.7.4.1.4 “Risk of change in value of investments in subsidiaries and associates of the Sava Insurance Group and Sava Re”.
| EUR | Profit or loss | AOCI | Increase (+20%) | Decrease (-20%) | Increase (+20%) | Decrease (-20%) |
|---|---|---|---|---|---|---|
| 31 December 2023 | Financial investments (other than those supporting direct participating contracts) | 13,679,021 | -13,679,021 | 3,193,978 | -3,193,978 | |
| Direct participating contracts and investments supporting direct participating contracts | 21,714 | -60,490 | 0 | 0 | ||
| 13,700,735 | -13,739,511 | 3,193,978 | -3,193,978 | |||
| 31 December 2022 (restated) | Financial investments (other than those supporting direct participating contracts) | 14,373,066 | -14,373,066 | 2,987,535 | -2,987,535 | |
| Direct participating contracts and investments supporting direct participating contracts | 88,013 | -104,133 | 0 |
Thus, a 20% fall in equity prices would reduce the value of investments other than direct participating contracts by EUR 16.9 million (31 December 2022: EUR 17.4 million). The Sava Insurance Group’s exposure to equity price risk remained at approximately the same level in 2023 compared to the end of 2022.
| Sava Re | EUR | Profit or loss | AOCI | Increase (+20%) | Decrease (-20%) | Increase (+20%) | Decrease (-20%) |
|---|---|---|---|---|---|---|---|
| 31 December 2023 | Financial instruments | 5,336,908 | -5,336,908 | 5,336,908 | -5,336,908 | 0 | 0 |
| 31 December 2022 (restated) | Financial instruments | 5,522,392 | -5,522,392 | 5,522,392 | -5,522,392 | 0 | 0 |
A 20% change in the value of the equity securities would decrease the value of the investments by EUR 5.3 million (31 December 2022: EUR 5.5 million). The equity price risk of the Group’s and the Company’s equity securities remained at approximately the same level in 2023 as in 2022.
With regard to the risk associated with their financial investments in associates, the Sava Insurance Group and Sava Re are mainly exposed to the risk of a decline in the value of these investments. As at 31 December 2023, the Group’s total exposure to the risk of financial investments in associates was EUR 23.8 million (31 December 2022: EUR 21.9 million).
| Sava Insurance Group | EUR | 31 December 2023 | 31 December 2022 | Value | Post-stress value | Change in value | Value | Post-stress value | Change in value | |
|---|---|---|---|---|---|---|---|---|---|---|
| Decrease in value of 10% | 23,834,620 | 21,451,158 | -2,383,462 | 21,856,109 | 19,670,498 | -2,185,611 | ||||
| Decrease in value of 20% | 23,834,620 | 19,067,696 | -4,766,924 | 21,856,109 | 17,484,887 | -4,371,222 |
2023 (31 December 2022: 38.2%) of the total value of its investments in subsidiaries and associates. As at 31 December 2023, the Company’s total exposure to the risk related to investments in subsidiaries and associates was EUR 325.2 million (31 December 2022: EUR 322.9 million).
| Sava Re | EUR | 31 December 2023 | 31 December 2022 | |||
|---|---|---|---|---|---|---|
| Value | Post-stress value | Change in value | Value | Post-stress value | Change in value | |
| Decrease in value of 10% | 325,241,793 | 292,717,614 | -32,524,179 | 322,935,793 | 290,642,214 | -32,293,579 |
| Decrease in value of 20% | 325,241,793 | 260,193,435 | -65,048,359 | 322,935,793 | 258,348,635 | -64,587,159 |
| Value decrease of largest subsidiary of 10% | 123,364,958 | 111,028,462 | -12,336,496 | 123,364,958 | 111,028,462 | -12,336,496 |
| Value decrease of largest subsidiary of 20% | 123,364,958 | 98,691,967 | -24,672,992 | 123,364,958 | 98,691,967 | -24,672,992 |
The Company’s exposure to the risk related to investments in subsidiaries and associates was at a similar level in 2023 as in 2022. Taking account of all the impacts, we believe that the risk related to participations remained moderate due to their active management.
The Sava Insurance Group and Sava Re manage the risk related to their investments in subsidiaries and associates through active management of the companies, comprising:
As at 31 December 2023, the Sava Insurance Group recorded 8.3% of liabilities nominated in a foreign currency (2022: 10.7%).
The Sava Insurance Group manages currency risk through the efforts of each company to optimise asset-liability currency matching. Based on the market situation, individual companies assess the ability of currency matching in the primary currency, and, if this is not possible, the transaction currency is used for matching.
| Sava Insurance Group | EUR |
|---|---|
| Transaction currency | (mis)match |
| Euro (EUR) | 1,343,270,392 |
| US dollar (USD) | 44,029,051 |
| Korean won (KRW) | 14,006,703 |
| Macedonian denar (MKD) | 18,804,267 |
| Serbian dinar (RSD) | 25,429,025 |
| Other | 57,742,657 |
| Total | 1,503,282,095 |
| Financial liabilities | -74,987,535 |
| EUR | US Dollar (USD) | Korean Won (KRW) | Macedonian Denar (MKD) | Serbian Dinar (RSD) | Other | Total |
|---|---|---|---|---|---|---|
| 107,111,477 | 2,439,525 | 88,730 | 100,186 | 3,446,017 | 3,901,107 | 117,087,042 |
| EUR | US Dollar (USD) | Korean Won (KRW) | Macedonian Denar (MKD) | Serbian Dinar (RSD) | Other | Total |
|---|---|---|---|---|---|---|
| -914,467,838 | -42,171,929 | -14,550,070 | -12,234,485 | -21,897,715 | -60,428,938 | -1,065,750,976 |
| EUR | US Dollar (USD) | Korean Won (KRW) | Macedonian Denar (MKD) | Serbian Dinar (RSD) | Other | Total |
|---|---|---|---|---|---|---|
| 312,115,253 | 7,762,500 | 0 | 10,032,698 | 9,239,395 | 489,947 | 339,639,793 |
| EUR | US Dollar (USD) | Korean Won (KRW) | Macedonian Denar (MKD) | Serbian Dinar (RSD) | Other | Total |
|---|---|---|---|---|---|---|
| -825,972,622 | -79,293 | 0 | -11,208,304 | -3,575,024 | -59,066 | -840,894,309 |
| EUR | US Dollar (USD) | Korean Won (KRW) | Macedonian Denar (MKD) | Serbian Dinar (RSD) | Total |
|---|---|---|---|---|---|
| 11,979,854 | 454,638 | 5,494,361 | 12,641,698 | 1,645,706 | 32,216,257 |
98.4%
| EUR | US Dollar (USD) | Korean Won (KRW) | Macedonian Denar (MKD) | Serbian Dinar (RSD) | Other | Total |
|---|---|---|---|---|---|---|
| -586,910,697 | 0 | 0 | 0 | 0 | 0 | -586,914,306 |
| EUR | US Dollar (USD) | Korean Won (KRW) | Macedonian Denar (MKD) | Serbian Dinar (RSD) | Other | Total |
|---|---|---|---|---|---|---|
| 607,667,203 | 858,516 | 0 | 0 | 0 | 9,680 | 608,535,399 |
Sava Insurance Group
EUR
Financial Investments and Cash
| Financial liabilities | -74,924,356 | 0 | 0 | 0 | 0 | -74,924,356 | |
|---|---|---|---|---|---|---|---|
| Insurance and reinsurance contract assets | 67,133,351 | 2,630,004 | 30,262 | 0 | 1,987,189 | 3,491,178 | 75,271,985 |
| Insurance and reinsurance contract liabilities | -829,403,926 | -44,578,266 | -15,330,910 | -10,687,947 | -16,500,514 | -90,024,771 | -1,006,526,334 |
| Other assets | 298,223,324 | 5,507,267 | 0 | 11,990,350 | 6,593,818 | 545,933 | 322,860,692 |
| Other liabilities | -746,252,584 | -51,085 | 0 | -2,889,598 | -2,654,942 | -911 | -751,849,120 |
| Currency mismatch | 8,562,621 | 2,749,618 | 15,225,565 | 11,123,699 | 32,700,234 | 70,361,736 | |
| Currency matching ratio | 96.1% | ||||||
| Direct participating contracts | -478,840,440 | 0 | 0 | 0 | 0 | -478,840,440 | |
| Investments supporting direct participating contracts | 498,013,107 |
761,512
0
0
0
1,556
498,776,175
The Sava Insurance Group manages a high level of currency matching by monitoring matching of assets and liabilities at the level of individual companies and the portfolio. The Group manages the matching of currencies used by the Group companies in accordance with local accounting standards and regulations, which results in a slightly higher mismatch at Group level.
| EUR | Profit or loss | AOCI | Effect of 10% strengthening | Effect of 10% weakening | |
|---|---|---|---|---|---|
| US dollar (USD) | Insurance and reinsurance contracts | -3,971,210 | 3,971,210 | -50,638 | 50,638 |
| Financial investments | 4,402,905 | -4,402,905 | 0 | 0 | |
| 431,695 | -431,695 | -50,638 | 50,638 | ||
| Korean won (KRW) | Insurance and reinsurance contracts | -1,446,134 | 1,446,134 | -14,493 | 14,493 |
| Financial investments | 1,400,670 | -1,400,670 | 0 | 0 | |
| -45,464 | 45,464 | -14,493 | 14,493 | ||
| Serbian dinar (RSD) | Insurance and reinsurance contracts | -1,819,069 | 1,819,069 | 7,962 | -7,962 |
| Financial investments | 2,542,903 | -2,542,903 | 0 | 0 | |
| 723,834 | -723,834 | 7,962 | -7,962 | ||
| Macedonian denar (MKD) | Insurance and reinsurance contracts | -1,208,244 | 1,208,244 |
| Currency | Profit or loss | AOCI | Effect of 10% strengthening | Effect of 10% weakening |
|---|---|---|---|---|
| US dollar (USD) | -4,189,323 | 4,189,323 | -163,164 | 163,164 |
| Financial investments | 4,505,470 | -4,505,470 | 0 | 0 |
| 316,146 | -316,146 | -163,164 | 163,164 | |
| Korean won (KRW) | -1,530,065 | 1,530,065 | -38,072 | 38,072 |
| Financial investments | 1,805,027 | -1,805,027 | 0 | 0 |
| 274,962 | -274,962 | -38,072 | 38,072 |
| Insurance and reinsurance contracts | -1,438,097 | 1,438,097 | -6,231 | 6,231 |
|---|---|---|---|---|
| Financial investments | 2,169,815 | -2,169,815 | 0 | 0 |
| 731,718 | -731,718 | -6,231 | 6,231 |
| Insurance and reinsurance contracts | -1,048,640 | 1,048,640 | -20,154 | 20,154 |
|---|---|---|---|---|
| Financial investments | 1,681,276 | -1,681,276 | 0 | 0 |
| 632,636 | -632,636 | -20,154 | 20,154 |
| Insurance and reinsurance contracts | -8,481,494 | 8,481,494 | -238,667 | 238,667 |
|---|---|---|---|---|
| Financial investments | 5,328,834 | -5,328,834 | 0 | 0 |
| Direct participating contracts and investments supporting direct participating contracts | 27,256 | -32,263 | 0 | 0 |
| -3,125,404 | 3,120,397 | -238,667 | 238,667 | |
| 275 |
Sava Re is the Sava Insurance Group member with the largest exposure to currency risk. As at 31 December 2023, the Company’s liabilities denominated in foreign currencies accounted for 14.0% (2022: 15.4%) of the Company’s total liabilities. As the proportion of international business is rising (as is the number of different currencies), Sava Re has put in place rules on currency matching, which define the conditions and method of currency matching. To mitigate currency risk, assets and liabilities in foreign currencies are actively matched. The currency matching rules lay down the criteria as to when the Company should start currency matching by accounting currency. Based on the market situation, the Company assesses the ability of currency matching in the primary currency, and if this is not possible, the transaction currency is to be used for matching.
The currency mismatch of assets and liabilities is monitored by individual accounting currency. The following table shows the currency mismatch for the five currencies that account for the largest share of liabilities.
| Sava Re | EUR | Euro (EUR) | US dollar (USD) | Korean won (KRW) | Chinese yuan (CNY) | Indian rupee (INR) | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Financial investments and cash | 595,859,090 | 38,288,843 |
| Sava Re | EUR | Euro (EUR) | US dollar (USD) | Korean won (KRW) | Chinese yuan (CNY) | ||
|---|---|---|---|---|---|---|---|
| Financial liabilities | 14,006,703 | 9,305,018 | 5,721,095 | 36,287,456 | 699,468,206 | ||
| Insurance and reinsurance contract assets | 94,515,178 | 2,439,525 | 88,730 | 447,814 | 244,989 | 3,121,729 | 100,857,965 |
| Insurance and reinsurance contract liabilities | -182,553,431 | -42,167,875 | -14,550,070 | -9,958,235 | -7,437,358 | -39,532,600 | -296,199,571 |
| Other assets | 13,623,626 | 4,525 | 0 | 0 | 0 | 0 | 13,628,151 |
| Other liabilities | -442,764,537 | 0 | 0 | 0 | 0 | -2,679 | -442,767,216 |
| Currency mismatch | 1,434,982 | 454,638 | 205,403 | 1,471,274 | 126,094 | 3,692,391 | |
| Currency matching ratio | 99.5% |
131 The accounting currency is the local currency used in the accounting documentation. Reinsurance contracts may be accounted for in various accounting currencies. Generally, this is the currency of liabilities and receivables due from cedants, and hence also the reinsurer.
| Other | Total | ||||||
|---|---|---|---|---|---|---|---|
| Financial investments and cash | 575,036,552 | 38,567,392 | 18,050,266 | 8,321,462 | 5,882,185 | 33,156,633 | 679,014,490 |
| Financial liabilities | -74,924,356 | 0 | 0 | 0 | 0 | 0 | -74,924,356 |
| Insurance and reinsurance contract assets | 59,534,851 | 2,630,004 | 30,262 | 244,344 | 62,758 | 1,794,326 | 64,296,545 |
| Insurance and reinsurance contract liabilities | -156,060,611 | -44,826,248 | -15,330,910 | -7,939,249 | -6,866,522 | -41,710,554 | -272,734,094 |
| Other assets | 10,937,310 | 0 | 0 | 0 | 0 | 0 | 10,937,310 |
| Other liabilities | -406,583,489 | -6,405 | 0 | 0 | 0 | 0 | -406,589,894 |
| Currency mismatch | 3,635,256 | 2,749,618 | 626,557 | 921,580 | 6,759,595 | 14,692,606 |
Currency matching ratio: 98.1%
In the management of currency risk (ALM aspect), SavaRe directly matches all the more liquid currencies. Other currencies are matched based on their correlation with the euro or the US dollar.
Sava Re
| AOCI | Effect of 10% strengthening | Effect of 10% weakening | |||
|---|---|---|---|---|---|
| US dollar (USD) | Insurance and reinsurance contracts | -3,972,835 | 3,972,835 | -50,525 | 50,525 |
| Financial investments | 3,828,884 | -3,828,884 | 0 | 0 | |
| -143,951 | 143,951 | -50,525 | 50,525 | ||
| Korean won (KRW) | Insurance and reinsurance contracts | -1,446,134 | 1,446,134 | -14,493 | 14,493 |
| Financial investments | 1,400,670 | -1,400,670 | 0 | 0 | |
| -45,464 | 45,464 | -14,493 | 14,493 | ||
| Chinese yuan (CNY) | Insurance and reinsurance contracts | -951,042 | 951,042 | 21,596 | -21,596 |
| Financial investments | 930,502 | -930,502 | 0 | 0 | |
| -20,540 | 20,540 | 21,596 | -21,596 | ||
| Indian rupee (INR) | 0 | 0 | |||
| Insurance and reinsurance contracts | -719,237 | 719,237 | 3,512 | -3,512 | |
| Financial investments | 572,110 | -572,110 | 0 | 0 | |
| -147,127 | 147,127 | 3,512 | -3,512 | ||
| Other |
| -3,641,087 | 3,641,087 | -64,439 | 64,439 |
|---|---|---|---|
| 3,628,746 | -3,628,746 | 0 | 0 |
|---|---|---|---|
| -12,341 | 12,341 | -64,439 | 64,439 |
| 277 |
| EUR | Profit or loss | AOCI | Effect of 10% strengthening | Effect of 10% weakening | |
|---|---|---|---|---|---|
| US dollar (USD) | Insurance and reinsurance contracts | -4,219,624 | 4,219,624 | -162,735 | 162,735 |
| Financial investments | 3,856,099 | -3,856,099 | 0 | 0 | |
| -363,525 | 363,525 | -162,735 | 162,735 | ||
| Korean won (KRW) | 0 | 0 | |||
| Insurance and reinsurance contracts | -1,530,065 | 1,530,065 | -38,072 | 38,072 | |
| Financial investments | 1,805,027 | -1,805,027 | 0 | 0 | |
| 274,962 | -274,962 | -38,072 | 38,072 | ||
| Chinese yuan (CNY) | |||||
| Insurance and reinsurance contracts | -769,491 | 769,491 | 15,754 | -15,754 | |
| Financial investments | 832,146 | -832,146 | 0 | 0 | |
| 62,656 | -62,656 |
The Group companies manage liquidity risk in line with the guidelines laid down in the Sava Insurance Group’s liquidity risk management policy. Each Group member carefully plans and monitors the realisation of cash flows (cash inflows and outflows) and, in the event of liquidity problems, informs the parent company, which assesses the situation and provides the necessary funds to ensure liquidity.
Liquidity risk is monitored and managed by the Group companies in accordance with the size and complexity of their operations, with particular attention paid to liquidity risk management in the EU-based insurance companies due to their importance to the Group’s operations.
The Group monitors and manages liquidity risk:
The Group companies generally meet their short-term liquidity needs by allocating funds to money market instruments in proportion to their estimated normal day-to-day liquidity requirements.
The adequacy of the assessed liquidity needs at the individual company level is regularly reviewed and analysed by monitoring and analysing realised operating cash flows and comparing them with medium-term cash flow projections.
Additional liquidity is provided to the Group companies through a system of intercompany liquidity lines of credit established within the Group companies and by maintaining an appropriate level of highly liquid investments. The Group’s risk strategy requires its EU-based insurance companies to hold at least 20% of their investment portfolio in highly liquid financial assets.
The Group companies prepare monthly reports on the cash flows generated by their core business, which are sent to the parent company together with explanations of significant inflows or outflows and deviations.
The Group’s management is informed of liquidity risks through regular reports which include, as a minimum, a comparison of realised and projected cash flows from the core business and the value and proportion of highly liquid investments in the portfolio.
As at 31 December 2023, highly liquid investments of the Sava Insurance Group represented 44.5% (31 December 2022: 43.0%) of the total investment portfolio, which demonstrates the high liquidity of the portfolio and its consistency with the risk strategy.
We consider the Sava Insurance Group’s liquidity risk to be largely unchanged from 2022 and low.
| Sava Insurance Group | EUR | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|
| Amount payable on demand | Carrying amount | Amount payable on demand | Carrying amount | |
| Life – insurance contracts issued without direct participation | 2,722,670 | 13,633,667 | 2,099,155 | 11,103,685 |
| Insurance contracts issued with direct participation | 517,421,856 | 586,910,697 | 416,314,739 |
Contracts issued with indirect participation
| 478,840,439 | |
|---|---|
| 241,511,538 | |
| 358,163,058 | |
| 251,720,145 | |
| 364,121,528 | |
| Total | 761,656,064 |
| 958,707,422 | |
| 670,134,039 | |
| 854,065,652 |
The surrender value, being the amount payable on demand, is the highest in the group of direct participating contracts, which also has the highest carrying amount. The increase in amounts payable on demand compared to the previous year is mainly due to an increase in the volume of direct participating contracts, as a result of portfolio growth and financial market developments.
| EUR | Carrying amount as at 31 December 2023 | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2023 |
|---|---|---|---|---|---|---|---|---|---|
| Financial investments measured at fair value through profit or loss | 114,587,332 | 2,686,757 | 1,726,306 | 1,442,417 | 2,734,225 | 764,548 | 22,705,242 | 95,576,983 | 127,636,477 |
| Financial investments measured at amortised cost | 74,776,353 | 28,287,735 | 7,304,922 | 15,475,996 | 6,787,865 | 5,808,577 | 24,190,317 | 0 | 87,855,412 |
| Financial investments measured at fair value through other comprehensive income | 1,225,364,473 | 262,344,328 | 225,229,656 | 242,274,174 | 136,530,084 | 144,302,234 | 332,062,823 | 15,969,890 | 1,358,713,188 |
| Cash and cash equivalents | 39,829,039 | 39,829,039 | 0 | 0 | 0 | 0 | 0 | 0 | 39,829,039 |
| Investments supporting direct participating contracts | 608,535,398 | 22,686,684 | 7,860,727 | 6,253,938 | 5,880,288 | 3,169,538 | 24,717,738 | 544,804,326 | 615,373,237 |
| Total | 2,063,092,594 | 355,834,543 | 242,121,610 | 265,446,524 | 151,932,462 | 154,044,896 | 403,676,119 | 656,351,200 | 2,229,407,354 |
| Category | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2022 |
|---|---|---|---|---|---|---|---|---|
| Financial investments measured at fair value through profit or loss | 122,378,486 | 3,089,623 | 1,352,122 | 1,791,671 | 1,507,782 | 2,799,590 | 25,053,276 | 135,707,825 |
| Financial investments measured at amortised cost | 62,325,228 | 13,626,989 | 16,885,042 | 2,910,243 | 11,877,501 | 5,008,761 | 22,635,496 | 72,944,033 |
| Financial investments measured at fair value through other comprehensive income | 1,107,536,116 | 188,994,586 | 142,478,911 | 183,014,527 | 191,411,646 | 116,142,061 | 452,348,748 | 1,289,318,156 |
| Cash and cash equivalents | 78,339,699 | 78,339,699 | 0 | 0 | 0 | 0 | 0 | 78,339,699 |
| Investments supporting direct participating contracts | 498,776,177 | 17,419,990 | 1,509,810 | 1,506,810 | 3,060 | 3,060 | 1,709,120 | 355,674,069 |
| Total | 1,869,355,706 | 301,470,887 | 162,225,886 | 189,223,251 | 204,799,988 | 123,953,472 | 501,746,640 | 1,931,983,781 |
| Category | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2023 |
|---|---|---|---|---|---|---|---|---|
| Insurance contract liabilities (other than for participating contracts) | 1,064,109,744 | 474,068,555 |
| Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2022 |
|---|---|---|---|---|---|---|---|
| 145,461,430 | 92,150,282 | 60,319,930 | 47,493,806 | 244,615,741 | 0 | 1,064,109,744 | Insurance contract assets (other than for participating contracts) |
| -9,605,486 | -6,718,928 | 726,297 | -395,315 | -1,217,307 | -1,221,771 | -778,462 | 0 |
| 586,910,697 | 15,487,299 | 13,907,928 | 16,963,764 | 24,029,368 | 25,181,637 | 491,340,702 | Participating contracts |
| 1,641,414,955 | 482,836,925 | 160,095,656 | 108,718,731 | 83,131,992 | 71,453,672 | 735,177,980 | Total insurance contracts |
| 1,642,044 | 2,653,349 | -865,452 | -188,938 | -28,915 | 12,152 | 59,848 | Reinsurance contract liabilities |
| -107,481,558 | -75,799,217 | -17,702,959 | -9,349,710 | -2,586,260 | -647,629 | -1,395,783 | Reinsurance contract assets |
| -105,839,514 | -73,145,868 | -18,568,411 | -9,538,648 | -2,615,175 | -635,477 | -1,335,934 | Total reinsurance contracts |
| 1,535,575,441 | 409,691,057 | 141,527,245 | 99,180,083 | 80,516,816 | 70,818,194 | 733,842,046 | Total insurance liabilities |
| 1,005,474,718 | 413,873,860 | 144,695,165 | 86,781,016 | 62,105,280 | 44,941,060 | 253,078,337 | 0 | 1,005,474,718 |
|---|---|---|---|---|---|---|---|---|
| -7,138,341 | -7,820,778 | 1,015,519 | 475,393 | 54,667 | -129,629 | -733,514 | 0 | -7,138,341 |
|---|---|---|---|---|---|---|---|---|
| 478,840,440 | 10,328,289 | 11,465,862 | 13,662,764 | 15,557,307 | 22,206,957 | 405,619,260 | 0 | 478,840,440 |
|---|---|---|---|---|---|---|---|---|
| 1,477,176,817 | 416,381,371 | 157,176,546 | 100,919,173 | 77,717,255 | 67,018,387 | 657,964,084 | 0 | 1,477,176,817 |
|---|---|---|---|---|---|---|---|---|
| 1,051,614 | 1,015,826 | 78,110 | -28,746 | -79,291 | 3,643 | 62,072 | 0 | 1,051,614 |
|---|---|---|---|---|---|---|---|---|
| -68,133,645 | -29,862,851 | -20,852,286 | -7,573,412 | -2,990,393 | -1,539,831 | -5,314,873 | 0 | -68,133,645 |
|---|---|---|---|---|---|---|---|---|
| -67,082,031 | -28,847,024 | -20,774,175 | -7,602,158 | -3,069,684 | -1,536,188 | -5,252,801 | 0 | -67,082,031 |
|---|---|---|---|---|---|---|---|---|
| 1,410,094,786 | 387,534,347 | 136,402,371 | 93,317,015 | 74,647,571 | 65,482,199 | 652,711,283 | 0 | 1,410,094,786 |
|---|---|---|---|---|---|---|---|---|
| Liability Type | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2023 |
|---|---|---|---|---|---|---|---|---|
| Subordinated liabilities | 74,987,535 | 0 | 0 | 0 | 0 | 0 | 74,987,535 | 74,987,535 |
| Other provisions | 8,074,255 | 1,543,811 | 177,514 | 61,270 | 31,533 | 1,789,475 | 4,378,040 | 8,074,255 |
| Other financial liabilities | 737,085 | 737,085 | 0 | 0 | 0 | 0 | 0 | 737,085 |
| Investment contract liabilities | 180,437,695 | 80,324,218 | 1,417,236 | 1,550,345 | 1,865,798 | 2,460,961 | 92,819,137 | 180,437,695 |
| Liabilities from operating activities | 23,136,124 | 18,569,124 | 5,370 | 3,538 | 3,538 | 3,538 | 1,799,135 | 23,136,124 |
| Other liabilities | 42,845,539 | 41,652,245 | 0 | 2,067,951 | 0 | 0 | -874,785 | 42,845,535 |
| Total | 330,218,233 | 142,826,484 | 1,600,120 | 3,683,104 | 1,900,869 | 4,253,974 | 173,983,847 | 330,218,228 |
| Liability Type | Up to 1 year |
|---|---|
| Subordinated liabilities | 74,924,356 |
| 0 | 0 | 0 | 0 | 0 | 74,924,356 | 0 | 74,924,356 | ||
|---|---|---|---|---|---|---|---|---|---|
| Other financial liabilities | 7,973,454 | 1,952,902 | 1,789,152 | 3,573,897 | 48,498 | 26,432 | 582,573 | 0 | 7,973,454 |
| Investment contract liabilities | 166,197,363 | 79,023,431 | 952,066 | 1,592,421 | 1,728,492 | 2,106,754 | 80,794,199 | 0 | 166,197,363 |
| Liabilities from operating activities | 13,176,941 | 8,157,730 | 3,557,652 | 0 | 7,785 | 0 | 1,626,315 | -172,541 | 13,176,941 |
| Other liabilities | 33,353,137 | 32,532,864 | 221,150 | 398,776 | 346,934 | 0 | 40,948 | -187,536 | 33,353,136 |
| Total | 296,173,827 | 122,215,508 | 6,520,020 | 5,565,094 | 2,131,709 | 2,133,186 | 157,968,391 | -360,084 | 296,173,824 |
SavaRe manages liquidity risk in accordance with the guidelines laid down in the liquidity risk management policy of the Sava Insurance Group and Sava Re. The Company monitors and manages liquidity risk:
The Company manages liquidity risk by ensuring funds in the amount of the estimated liquidity requirement. This consists of an assessment of normal day-to-day liquidity needs and a liquidity buffer, and it is provided by allocating assets to money market instruments.
The Company makes the normal current liquidity assessment based on the projected cash flow analysis in the period of up to one year included in the monthly and weekly plans, which take into account the planned investment maturity dynamics as well as other inflows and outflows from operating activities. To this end, historical data from previous monthly and weekly liquidity plans and projections regarding future operations are used. The liquidity reserve is then calculated on the basis of an assessment of the maximum weekly outflows based on historical data.
Additional liquidity is provided to SavaRe through a system of intercompany liquidity lines of credit established within the Group companies and by maintaining an appropriate level of highly liquid investments. The Company’s risk strategy requires that at least 20% of the investment portfolio be invested in highly liquid financial assets.
Management is informed of liquidity risks through regular reports which include, as a minimum, a comparison of realised and projected cash flows from the core business and the value and proportion of highly liquid investments in the portfolio.
The Company’s liabilities with up to 1 year’s maturity at the end of 2023 exceeded short-term assets. Taking into consideration expected operating income and a high share of liquid investments, we estimate the Company’s liquidity position as appropriate. Based on the above, we estimate that the liquidity risk of the Company is well managed and did not change significantly compared to year-end 2022.
In the following tables, the values of financial investments are shown on the basis of undiscounted cash flows, whereas (re)insurance contract assets and liabilities are shown on the basis of discounted cash flows.
| EUR | Carrying amount as at 31 December 2023 | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2023 |
|---|---|---|---|---|---|---|---|---|---|
| Financial investments measured at fair value through profit or loss | 37,286,800 | 186,300 | 186,300 | 186,300 | 186,300 | 186,300 | 7,748,409 | 32,966,164 | 41,646,073 |
| Financial investments measured at amortised cost | 5,811,776 | 406,400 | 339,486 | 3,326,176 | 1,153,403 | 82,046 | 1,968,593 | 0 | 7,276,104 |
| Financial investments measured at fair value through other comprehensive income | 311,285,620 | 81,249,862 | 84,720,879 | 71,499,122 | 27,509,728 | 23,533,266 | 48,274,645 | 0 | 336,787,501 |
| Cash and cash equivalents | 12,260,049 | 12,260,049 | 0 | 0 | 0 | 0 | 0 | 0 | 12,260,049 |
| Total | 366,644,245 | 94,102,611 | 85,246,665 | 75,011,598 | 28,849,431 | 23,801,612 | 57,991,647 | 32,966,164 | 397,969,727 |
| EUR | Carrying amount as at 31 December 2022 | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2022 |
|---|---|---|---|---|---|---|---|---|---|
| Financial investments measured at fair value through profit or loss | 39,718,676 | 1,523,900 | 186,400 | 186,400 | 186,400 | 186,400 | 7,320,506 | 34,442,673 |
| 44,032,679 | |||||||
|---|---|---|---|---|---|---|---|
| 3,871,965 | 564,866 | 301,672 | 213,669 | 2,200,358 | 1,097,485 | 134,315 | 0 |
| 4,512,365 |
| 280,840,335 | ||||||
|---|---|---|---|---|---|---|
| 77,428,888 | 46,197,857 | 54,768,379 | 46,679,482 | 20,546,997 | 67,552,054 | 0 |
| 313,173,657 |
| 23,926,029 | ||||||
|---|---|---|---|---|---|---|
| 23,926,029 | 0 | 0 | 0 | 0 | 0 | 0 |
| 348,357,005 | ||||||
|---|---|---|---|---|---|---|
| 103,443,684 | 46,685,929 | 55,168,448 | 49,066,240 | 21,830,882 | 75,006,875 | 34,442,673 |
| 385,644,729 |
| Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2023 | ||
|---|---|---|---|---|---|---|---|---|---|
| Insurance contract liabilities | 295,752,723 | 160,511,367 | 71,517,218 | 31,455,296 | 13,263,165 | 5,434,969 | 13,570,708 | 0 | 295,752,723 |
| Insurance contract assets | -5,095,344 | -8,420,440 | 1,722,355 | 1,058,942 | 405,773 | 110,555 | 27,471 | 0 | -5,095,344 |
| Total insurance contracts | 290,657,379 | 152,090,928 | 73,239,573 | 32,514,238 | 13,668,938 | 5,545,524 | 13,598,179 | 0 | 290,657,379 |
| Reinsurance contract liabilities | 446,848 | 1,548,940 | -853,818 | -204,205 |
| Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2022 | |
|---|---|---|---|---|---|---|---|---|
| Reinsurance contract assets | -95,762,621 | -66,803,641 | -16,272,578 | -8,898,097 | -2,286,338 | -513,655 | -988,312 | -95,762,621 |
| Total reinsurance contracts | -95,315,773 | -65,254,701 | -17,126,396 | -9,102,302 | -2,330,407 | -513,655 | -988,312 | -95,315,773 |
| Total insurance liabilities | 195,341,606 | 86,836,227 | 56,113,177 | 23,411,936 | 11,338,531 | 5,031,869 | 12,609,868 | 195,341,606 |
| Insurance contract liabilities | 272,414,051 | 133,056,229 | 72,843,218 | 31,721,798 | 14,199,439 | 6,027,470 | 14,565,898 | 272,414,051 |
| Insurance contract assets | -3,071,631 | -6,161,575 | 1,660,701 | 913,810 | 375,558 | 122,640 | 17,235 | -3,071,631 |
| Total insurance contracts | 269,342,420 | 126,894,653 | 74,503,919 | 32,635,607 | 14,574,997 | 6,150,110 | 14,583,133 | 269,342,420 |
| Reinsurance contract liabilities | 320,044 | 418,130 | 58,851 | -49,160 | -96,926 | -10,852 | 0 | 320,044 |
| Reinsurance contract assets |
| -61,224,914 | -25,185,819 | -20,194,495 | -7,225,375 | -2,537,356 | -1,336,254 | -4,745,616 | 0 |
|---|---|---|---|---|---|---|---|
| -61,224,914 | Total reinsurance contracts | ||||||
| -60,904,871 | -24,767,689 | -20,135,643 | -7,274,535 | -2,634,282 | -1,347,106 | -4,745,616 | 0 |
| -60,904,871 | Total insurance liabilities | ||||||
| 208,437,549 | 102,126,964 | 54,368,276 | 25,361,072 | 11,940,715 | 4,803,004 | 9,837,518 | 0 |
| 208,437,549 | Maturity analysis of other liabilities |
| Carrying amount as at 31 December 2023 | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | Nospecified maturity |
|---|---|---|---|---|---|---|---|
| 74,987,535 | 2,812,500 | 2,812,500 | 2,812,500 | 2,812,500 | 2,812,500 | 77,812,500 | 91,875,000 |
| Other provisions | 419,660 | 18,121 | 18,457 | 44,740 | 14,538 | 25,043 | 298,761 |
| Other financial liabilities | 0 | ||||||
| Investment contract liabilities | 0 | ||||||
| Liabilities from operating activities | 6,319,991 | 6,319,991 | 0 |
| Carrying amount as at 31 December 2022 | Up to 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | Over 5 years | No specified maturity | Total as at 31 December 2022 |
|---|---|---|---|---|---|---|---|---|
| Subordinated liabilities | 74,924,356 | 2,812,500 | 2,812,500 | 2,812,500 | 2,812,500 | 80,625,000 | 94,687,500 | |
| Other provisions | 392,640 | 23,207 | 13,448 | 24,585 | 39,875 | 17,256 | 274,268 | 0 |
| Other financial liabilities | 0 | |||||||
| Investment contract liabilities | 0 | |||||||
| Liabilities from operating activities | 45,414 | 0 | ||||||
| Other liabilities | 4,476,183 | 0 | ||||||
| Total | 86,857,573 | 14,280,999 | 2,830,957 | 2,857,240 | 2,827,038 | 2,837,543 | 78,111,261 | 103,745,038 |
Assets exposed to credit risk include financial investments (deposit investments, bonds, loans granted, deposits with cedants, bond and convertible mutual funds, and cash and cash equivalents), receivables due from reinsurers and other receivables.
| Type of asset | Amount (EUR) 31 December 2023 | Amount (EUR) 31 December 2022 |
|---|---|---|
| Fixed-rate investments | 1,420,034,999 | 1,334,655,954 |
| Debt instruments | 1,369,475,036 | 1,241,432,325 |
| Cash and cash equivalents | 50,559,963 | 93,223,629 |
| Reinsurance contract assets | 107,481,560 | 68,133,642 |
| Current tax assets | 444,616 | 3,412,855 |
| Trade and other receivables | 14,271,358 | 12,282,973 |
| Total exposure | 1,542,232,533 | 1,418,485,424 |
| Type of asset | Amount (EUR) 31 December 2023 | Amount (EUR) 31 December 2022 |
|---|---|---|
| Fixed-rate investments | 336,075,275 | 316,160,834 |
| Debt instruments | 323,815,226 | 292,234,805 |
| Cash and cash equivalents | 12,260,049 | 23,926,029 |
| Reinsurance contract assets | 95,762,621 | 61,224,914 |
| Current tax assets | 0 | 49,594 |
| Trade and other receivables | 198,366 | 213,228 |
| Total exposure | 432,036,262 | 377,648,571 |
As at 31 December 2023, the Group was exposed to credit risk in the amount of EUR 1,542.2 million (31 December 2022: EUR 1,395.8 million).
As at 31 December 2023, the Company was exposed to credit risk in the amount of EUR 432.0 million (31 December 2022: EUR 377.4 million).
Credit risk for investments is estimated based on two factors:
Below we set out an assessment of credit risk for fixed-rate investments.
Included are government bonds, corporate bonds, deposits and loans granted, deposits with cedants, bond and convertible mutual funds, and private debt fund investments.
| Amount | As % of total | Amount | As % of total | ||
|---|---|---|---|---|---|
| AAA | 336,369,733 | 24.6% | 272,546,840 | 22.0% | 2.6 |
| AA | 287,122,315 | 21.0% | 230,124,711 | 18.5% | 2.5 |
| A | 348,730,591 | 25.5% | 322,414,303 | 26.0% | -0.5 |
| BBB | 248,860,893 | 18.2% | 261,402,855 | 21.1% | -2.9 |
| BB | 64,149,305 | 4.7% | 56,794,372 | 4.6% | 0.1 |
| B | 16,755,540 | 1.2% | 14,975,341 | 1.2% | 0.0 |
| Not rated | 67,486,659 | 4.9% | 83,173,903 | 6.7% | -1.8 |
| Total | 1,369,475,036 | 100.0% | 1,241,432,325 | 100.0% | 0.00 |
| Amount | As % of total | Amount | As % of total | ||
|---|---|---|---|---|---|
| A | 416 | 0.0% | 124 | 0.0% | 0.0 |
| BBB | 20,365,890 | 40.3% | 47,017,059 | 50.4% | -0.1 |
| BB | 143,830 | 0.3% | 291,663 |
As regards management of credit risk, the objective pursued by the Group determines that the share of debt instruments and cash and cash-equivalents accounts for at least 75% of the investment portfolio value. As at 31 December 2023, these assets represented 93.6% of the investment portfolio (31 December 2022: 90.1%). As at 31 December 2023, fixed-rate investments rated “A” or better accounted for 71.1% of the total fixed-rate portfolio (31 December 2022: 66.5%). The share of the best-rated investments increased somewhat in 2022 compared with the previous year. Fixed-rate investments with no credit rating available accounted for 4.9% of fixed-rate investments (previous year: 6.9%). The composition of cash and cash equivalents reflects the banking system in the region where the Group has a presence through subsidiaries.
| Issuer | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Sava Re | EUR | 31 December 2023 | 31 December 2022 | ||
| AAA | 122,374,700 | 37.8% | 123,438,923 | 42.2% | -4.4 |
| AA | 96,935,351 | 29.9% | 75,239,126 | 25.7% | 4.2 |
| A | 66,661,733 | 20.6% | 53,222,345 | 18.2% | 2.4 |
| BBB | 28,882,802 | 8.9% | 29,847,230 | 10.2% | -1.3 |
| BB | 0 | 0.0% | 997,504 | 0.3% | -0.3 |
| B | 721,149 | 0.2% | 405,253 | 0.1% | 0.1 |
| Not rated | 8,239,491 | 2.5% | 9,084,422 | 3.1% | -0.6 |
| Total | 323,815,226 | 100.0% | 292,234,805 | 100.0% |
| Issuer | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Sava Re | EUR | 31 December 2023 | 31 December 2022 |
| Industry | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Government | 859,201,655 | 55.7% | 772,241,781 | 52.9% | 2.8 |
| Banks | 157,992,535 | 10.2% | 166,396,360 | 11.4% | -1.2 |
| – Cash and cash equivalents | 50,531,494 | 3.3% | 93,181,947 | 6.4% | -3.1 |
| – Other | 107,461,041 | 7.0% | 73,214,413 | 5.0% | 2.0 |
| Utilities | 143,832,627 | 9.3% | 134,239,893 | 9.2% | 0.1 |
| Other financial institutions | 109,418,846 | 7.1% | 108,418,552 | 7.4% | -0.3 |
| Consumables | 100,956,361 | 6.5% | 104,447,548 | 7.2% | -0.6 |
In terms of credit risk management, the Company aims to have a substantial portion of its debt investments rated “A-” or better. As at 31 December 2023, fixed-rate debt investments rated “A” or better represented 88.3% (31 December 2022: 86.1%) of total debt investments. The Company regularly monitors its exposure to individual issuers and any changes in their creditworthiness in order to be prepared to respond in a timely manner to any adverse developments in the financial markets or an increase in risk associated with an issuer.
The Company mitigates the credit risk of its other investments through a high degree of diversification and by investing in liquid securities. The investment portfolios of the Sava Insurance Group and the Company are well diversified in accordance with local law and Group internal rules in order to avoid high concentration in a particular type of investment, high concentration with a particular counterparty or economic sector, or other potential forms of concentration.
| 63,031,354 | 4.1% |
|---|---|
| 53,856,376 | 3.7% |
| 0.4 |
| 57,339,858 | 3.7% |
|---|---|
| 52,054,299 | 3.6% |
| 0.2 |
| 51,405,309 | 3.3% |
|---|---|
| 69,096,975 | 4.7% |
| -1.4 |
| 1,543,178,544 | 100.0% |
|---|---|
| 1,460,751,783 | 100.0% |
The Group’s largest exposure by asset class is to government bonds (31 December 2023: Germany 10.3%, 31 December 2022: Slovenia 7.6%).
| Industry | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Government | 231,494,236 | 61.9% | 215,684,088 | 60.6% | 1.3 |
| Banks | 33,816,689 | 9.0% | 38,872,331 | 10.9% | -1.9 |
| – Cash and cash equivalents | 12,260,049 | 3.3% | 23,926,029 | 6.7% | -3.4 |
| – Other | 21,556,640 | 5.8% | 14,946,302 | 4.2% | 1.6 |
| Other financial institutions | 29,439,519 | 7.9% | 16,341,290 | 4.6% | 3.3 |
| Utilities | 21,084,448 | 5.6% | 25,175,956 | 7.1% | -1.4 |
| Infrastructure | 20,604,910 | 5.5% | 18,843,871 | 5.3% | 0.2 |
| Consumables | 18,328,796 | 4.9% | 17,488,204 | 4.9% | 0.0 |
| Investment property | 13,898,550 | 3.7% | 15,149,931 |
-0.5
5,559,207
1.5%
8,523,027
2.4%
-0.9
374,226,354
100.0%
356,078,698
100.0%
The Company’s largest exposure by asset class is also to government bonds (31 December 2023: Germany 12.9%; 31 December 2022: Germany 10.5%).
| Region | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Slovenia | 193,373,933 | 12.5% | 228,540,299 | 15.6% | -3.1 |
| Europe, EU Member States | 918,335,348 | 59.5% | 836,128,026 | 57.2% | 2.3 |
| Europe, non-EU members | 187,016,915 | 12.1% | 164,626,362 | 11.3% | 0.8 |
| United States | 182,803,079 | 11.8% | 168,553,859 | 11.5% | 0.3 |
| Rest of the world | 61,649,269 | 4.0% | 62,903,237 | 4.3% | -0.3 |
| Total | 1,543,178,544 | 100.0% | 1,460,751,783 | 100.0% |
The Group’s largest exposure by region is to the EU member states (31 December 2023: 59.5%, 31 December 2022: 57.2%). This is followed by the exposure to Slovenia-based issuers (31 December 2023: 12.5%; 31 December 2022: 15.6%) and the exposure to non-EU issuers (31 December 2022: 12.1%; 31 December 2021: 11.3%). The distribution of exposure to other regions did not change significantly compared to the end of 2022.
| Region | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Slovenia | 45,642,526 | 12.2% | 56,453,808 | 15.9% | -3.7 |
| Europe, EU Member States | 229,660,282 | 61.4% | 199,723,569 |
| Type of investment | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Government bonds | 105,036,038 | 6.8% | 103,325,597 | 7.1% | -0.3 |
| Cash and cash equivalents | 39,944,537 | 2.6% | 77,128,062 | 5.3% | -2.7 |
| Investment property | 19,346,001 | 1.3% | 19,595,377 | 1.3% | -0.1 |
| Corporate bonds | 14,666,100 | 1.0% | 13,094,074 | 0.9% | 0.1 |
| Shares | 5,593,016 | 0.4% | 9,844,715 | 0.7% | -0.3 |
| Mutual funds | 3,428,351 | 0.2% | 3,265,204 | 0.2% | 0.0 |
| Deposits and CDs | 3,067,028 | 0.2% | 0.0% | 0.2 | |
| Infrastructure funds | 1,641,000 | 0.1% | 1,260,856 | 0.1% | 0.0 |
| Loans granted |
The Group’s exposure to Slovenia decreased by 3.1 p.p. in 2023. As at 31 December 2023, investments in government bonds represented the largest exposure to Slovenia, the same as at 31 December 2022. They accounted for 6.8% of the total portfolio, down by 0.3 p.p. compared to the previous year.
As at 31 December 2023, the Group’s exposure to the ten largest issuers was EUR 569.4 million, representing 36.9% of financial investments (31 December 2022: EUR 485.9 million; 33.3%). The Group’s largest exposure to a single issuer is to Germany.
| Type of investment | Amount | As % of total | Amount | As % of total | % change (p.p.) |
|---|---|---|---|---|---|
| Government bonds | 13,590,744 | 3.6% | 12,354,165 | 3.5% | 0.2 |
| Cash and cash equivalents | 10,426,394 | 2.8% | 22,551,153 | 6.3% | -3.5 |
| Investment property | 7,582,109 | 2.0% | 7,721,693 | 2.2% | -0.1 |
| Corporate bonds | 5,411,620 | 1.4% | 3,962,278 | 1.1% | 0.3 |
| Shares | 3,298,739 | 0.9% | 6,892,061 | 1.9% | -1.1 |
| Loans granted | 2,670,572 | 0.7% | 1,711,601 | 0.5% | 0.2 |
| Infrastructure funds | 1,641,000 | 0.4% | 1,260,856 | 0.4% | 0.1 |
| Deposits and CDs | 1,021,347 | 0.3% | 0 | 0.0% | 0.3 |
| Total | 45,642,526 | 12.2% | 56,453,808 | 15.9% | -3.7 |
At the year end, the exposure of the Company to Slovenia-based issuers was EUR 45.6 million, representing 12.2% of financial investments (31 December 2022: EUR 56.4 million; 15.9%). Compared to 31 December 2022, the share of such investments decreased by 3.7 p.p., chiefly due to the lower balance of cash and cash equivalents and equity investments.
As at 31 December 2023, the Company’s exposure to the ten largest issuers was EUR 154.5 million, representing 41.3% of financial investments (31 December 2022: EUR 150.5 million; 42.3%). The largest single issuer of securities to which the Company is exposed is Germany. As at 31 December 2023, the exposure totalled EUR 48.3 million or 12.9% of financial investments (31 December 2022: EUR 38.5 million; 10.8%).
The Group monitors credit risk by monitoring the calculated expected credit losses, which measure the potential for an investment to be impaired or reduced in value due to the credit risk of the issuer. The expected credit loss of an investment is measured according to its stage, which is reviewed on a monthly basis. The majority of the investments for which the Company measures and monitors expected credit losses (bonds, loans, deposits) are classified as stage 1, meaning that the Company has not experienced a significant increase in credit risk since the date the investment was recognised. For the value of investments exposed to credit risk, changes in the fair value of interest on FVOCI investments, changes in the amortised cost of AC investments, and changes in accrued interest and exchange rate differences are recorded in the table under “Other changes”.
EUR
| 2023 | 2022 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Balance as at 1 January | 1,198,111,917 | 7,344,968 | 0 | 1,205,456,885 | 1,350,271,713 | 14,467,493 | 0 | 1,364,739,206 |
| Opening balance – without transfer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| New financial assets acquired | 360,584,373 | 0 | 0 | 360,584,373 | 258,062,215 | 0 | 0 | 258,062,215 |
| Financial assets derecognised | -249,219,268 | -2,245,105 | 0 | -251,464,373 | -240,670,820 | -2,391,185 | 0 | -243,062,005 |
| Transfer to stage 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transfer to stage 2 | 0 | 0 | 0 | 0 | -392,357 | 392,357 | 0 | 0 |
| Transfer to stage 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in business models and risk parameters | -73,523 | 0 | 0 |
| Stage | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Balance as at 1 January | -1,539,951 | -604,682 | 0 | -2,144,633 |
| Opening balance – without transfer | 0 | 0 | 0 | 0 |
| -1,347,048 | -1,148,867 | 0 | -2,495,915 | |
| Transfer to stage 1 | 0 | 0 | 0 | 0 |
| Transfer to stage 2 | 0 | 0 | 0 | 0 |
| 339 | -339 | 0 | 0 | |
| Transfer to stage 3 | 0 | 0 | 0 | 0 |
| -73,523 | -850,631 | 0 | 0 | -850,631 |
|---|---|---|---|---|
| 21,943,498 | 692,025 | 0 | 22,635,522 | |
| -168,321,046 | -5,123,697 | 0 | -173,444,743 | |
| Exchange differences | -51,057 | 0 | 0 | -51,057 |
| 12,837 | 0 | 0 | 12,837 | |
| Balance as at 31 December | 1,331,295,939 | 5,791,888 | 0 | 1,337,087,827 |
| 1,198,111,911 | 7,344,968 | 0 | 1,205,456,879 |
| Resulting from new acquisitions of financial assets | -600,119 | 0 | -600,119 | |
|---|---|---|---|---|
| -585,599 | 0 | -585,599 | ||
| Eliminated on sale or maturity of financial assets | 573,026 | 2,145 | 0 | 575,171 |
| 552,740 | 547,907 | 0 | 1,100,647 | |
| Other changes | 117,232 | 252,034 | 0 | 369,266 |
| -160,389 | -3,383 | 0 | -163,772 | |
| Exchange differences | 164 | 0 | 0 | 164 |
| 10 | 0 | 0 | 10 | |
| Balance as at 31 December | -1,449,648 | -350,503 | 0 | -1,800,151 |
| -1,539,947 | -604,682 | 0 | -2,144,629 |
| Stage 1 | Stage 2 | Stage 3 | Total | |
|---|---|---|---|---|
| Balance as at 1 January | 283,353,365 | 1,402,758 | 0 | 284,756,123 |
| 275,409,135 | 1,767,528 | 0 | 277,176,663 | |
| New financial assets acquired | 118,305,237 | 0 | 0 |
| 118,305,237 | 100,226,328 | 0 | 0 | 100,226,328 |
|---|---|---|---|---|
| Financial assets derecognised | -92,262,078 | -1,000,000 | 0 | -93,262,078 |
| -68,469,935 | 0 | 0 | -68,469,935 | |
| Transfer to stage 1 | 0 | 0 | 0 | 0 |
| Transfer to stage 2 | 0 | 0 | 0 | 0 |
| Transfer to stage 3 | 0 | 0 | 0 | 0 |
| Change in business models and risk parameters | 0 | 0 | 0 | 0 |
| Other changes | 7,029,370 | 318,391 | 7,347,760 | -23,812,163 |
| -364,770 | 0 | -24,176,933 | ||
| Balance as at 31 December | 316,425,894 | 721,149 | 0 | 317,147,043 |
| 283,353,365 | 1,402,758 | 0 | 284,756,123 |
| Stage 1 | Stage 2 | Stage 3 | Total | |
|---|---|---|---|---|
| Balance as at 1 January |
| -103,893 | -180,023 | 0 | -283,916 |
|---|---|---|---|
| -141,047 | -164,859 | 0 | -305,905 |
| Transfer to stage 1 | 0 | 0 | 0 |
| Transfer to stage 2 | 0 | 0 | 0 |
| Transfer to stage 3 | 0 | 0 | 0 |
| Change in contractual cash flows | 0 | 0 | 0 |
| 24,232 | -15,165 | 0 | 9,067 |
| Resulting from new acquisitions of financial assets | -30,519 | 0 | -30,519 |
| -65,093 | 0 | 0 | -65,093 |
| Eliminated on sale or maturity of financial assets | 16,528 | 0 | 16,528 |
| 90,477 | 0 | 0 | 90,477 |
| Other changes | 68,913 | 0 | 68,913 |
| -12,461 | 0 | 0 | -12,461 |
| Balance as at 31 December | -48,971 | -180,023 | -228,994 |
| -103,893 | -180,023 | 0 | -283,916 |
The main input parameters for determining credit losses are the probability of default (PD), the loss given default (LGD) and the exposure at default (EAD). The probability of default is modelled as a function of historical average default probabilities over time, a systematic risk factor and a correlation parameter. The value of a systematic risk or economic condition factor reflects the position in the economic cycle over a period of time. The Company determines the business cycle index based on the deviation of GDP growth in the OECD area from its long-term trend. Mathematical operations can be used to obtain the long-term trend and the cyclical component (deviations from trend) from nominal GDP.
| Downside | Baseline | Upside | Downside | Baseline | Upside | |
|---|---|---|---|---|---|---|
| Investments for which expected credit loss (ECL) is calculated | 1,338,671,336 | 1,338,671,336 | 1,338,671,336 | 1,205,643,710 | 1,205,643,710 | 1,205,643,710 |
| Expected credit loss | -2,267,606 | -1,800,154 | -1,305,340 | -2,647,327 | -2,144,634 | -1,660,630 |
| % of stage 2 investments | 19.6% | 19.5% | 20.1% | 28.1% | 28.2% | 28.2% |
| Downside | Baseline | Upside | Downside | Baseline | Upside | |
|---|---|---|---|---|---|---|
| Investments for which expected credit loss (ECL) is calculated | 317,097,396 | 317,097,396 | 317,097,396 | 284,712,300 | 284,712,300 | 284,712,300 |
| -286,791 | -228,994 | -169,812 | -344,741 | -283,916 | -222,912 | |
|---|---|---|---|---|---|---|
| % of stage 2 investments | 54.7% | 54.7% | 56.1% | 62.6% | 63.4% | 63.8% |
For the purpose of sensitivity testing of the ECL level, a stress scenario has been prepared where the average default rate is shocked by around 40 basis points. Such a change in the probability of default would reduce the estimated long-term expected economic activity (change in GDP) by around 0.7 p.p. in the downside scenario and by 5 p.p. in the upside scenario. A change in these assumptions would increase the Group’s ECLs from EUR -1.8 million to EUR -2.3 million in 2023 in the case of deterioration and from EUR -1.8 million to EUR -1.3 million in the case of improvement. The Group has 6 stage 2 investments in its portfolio, representing 19.5% of the total ECL at 31 December 2023 (31 December 2022: 28.2%).
In Sava Re, in case of a deterioration of the situation, the ECL would increase from EUR -0.2 million to EUR -0.3 million, and in case of an improvement of the situation, the provision would decrease from EUR -0.2 million to EUR 0.2 million. The Company has 1 stage 2 investment in its portfolio, representing 54.7% of the total ECL as at 31 December 2023 (31 December 2022: 62.4%).
The Group is also exposed to credit risk in relation to its reinsurance programme. As a rule, subsidiaries conclude reinsurance contracts directly with the parent company. Exceptionally, if so required by local regulations, they buy reinsurance from providers of assistance services and local reinsurers. In such cases, local reinsurers transfer the risks to Sava Re, thus reducing the effective credit risk exposure relating to reinsurers below the one correctly shown according to accounting rules.
Reinsurance programmes are mostly placed with first-class reinsurers with an appropriate credit rating (at least “A-” according to S&P Global Ratings for long-term business and at least “BBB+” for short-term business). Thus, more than 90% of the Sava Insurance Group’s credit risk exposure to reinsurers at the end of 2023 (2022: at least 90%) related to reinsurers rated “BBB” or better. When classifying reinsurers by credit rating group, we considered the credit rating of each individual reinsurer, also where the reinsurer is part of a group. Often such reinsurers are unrated subsidiaries, while the parent company has a credit rating. We consider such a treatment conservative, as ordinarily a parent company takes action if a subsidiary gets into trouble.
As at 31 December 2023, the total exposure of the Sava Insurance Group to credit risk relating to reinsurers was EUR 107.5 million (31 December 2022: EUR 68.1 million) and relates to reinsurance contract assets (including receivables due from reinsurers). At 31 December 2023, the credit risk exposure relating to reinsurers represented 4.2% of total assets (31 December 2022: 2.9%).
| Sava Insurance Group | EUR | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|
| Rated by S\&P / AM Best | Amount | As % of total | Amount | As % of total |
| (A++ or A+)/(AAA or AA) | 9,217,251 | 8.6% | 7,833,945 | 11.5% |
| A / (A or A-) | 85,004,406 | 79.1% | 49,126,424 | 72.1% |
| BBB / (B++ or B+) | 5,091,721 | 4.7% | 4,947,880 | 7.3% |
| Less than BBB / less than B+ | 929,745 | 0.9% | 2,780,351 | 4.1% |
| Not rated | 7,238,436 | 6.7% | 3,445,045 | 5.1% |
| Total | 107,481,558 | 100.0% | 68,133,645 | 100.0% |
The Company’s reinsurance programmes are mostly placed with first-class reinsurers with an appropriate credit rating (at least “A-” according to S&P Global Ratings for long-term business, and at least “BBB+” for short-term business). We consider this risk to be low, particularly as the investment portfolio is adequately diversified. See details in the following table. Thus, more than 95% of the credit risk exposure to reinsurers at the end of 2023 (2022: slightly less than 95%) related to reinsurers rated “BBB” or better.
The following tables show the Group’s and the Company’s share of total receivables by type and maturity.
| Receivables | Gross amount | Allowance |
|---|---|---|
| Not past due | 444,616 | 0 |
| Past due up to 30 days | 437,109 | 0 |
| Past due from 31 to 60 days | 0 | 0 |
| Past due from 61 to 90 days | 0 | 0 |
| Past due from 91 to 180 days | 0 | 0 |
| Past due from 181 days to 1 year | 0 | 0 |
| Past due over 1 year | 0 | 0 |
| Total | 444,616 | 0 |
| Receivables arising out of insurance business (outside the scope of IFRS 17) | Gross amount | Allowance |
|---|---|---|
| Other short-term receivables | 4,533,434 | -1,148,176 |
| Current tax assets | 1,551,247 | 1,712,619 |
| Past due up to 30 days | 36,470 | 10,302 |
| Past due from 31 to 60 days | 15,459 | 2,887 |
| Past due from 61 to 90 days | 56,274 | 3,385,258 |
| Receivables arising out of investments | Gross amount | Allowance |
|---|---|---|
| 728,130 | -166,900 | |
| 561,230 | 368,526 | |
| 174,693 | 0 | |
| 0 | 0 | |
| 0 | 18,011 |
| 12,422,002 | -2,097,132 | 10,324,870 | 10,009,539 | 217,384 | 29,101 | 25,669 | 14,550 | 8,962 | 19,665 | 10,324,870 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 17,683,566 | -3,412,208 | 14,271,358 | 11,929,312 | 2,104,696 | 65,571 | 35,971 | 30,009 | 11,849 | 93,950 | 14,271,358 | |
| Total | 18,128,182 | -3,412,208 | 14,715,974 | 12,366,421 | 2,104,696 | 65,571 | 35,971 | 30,009 | 11,849 | 101,457 | 14,715,974 |
| Not past due | Past due up to 30 days | Past due from 31 to 60 days | Past due from 61 to 90 days | Past due from 91 to 180 days | Past due from 181 days to 1 year | Past due over 1 year | Total | Gross amount | Allowance | Receivables |
|---|---|---|---|---|---|---|---|---|---|---|
| 3,412,855 | 0 | 3,412,855 | 3,412,855 | 0 | 0 | 0 | 0 | 0 | 0 | 3,412,855 |
| 4,466,344 | -2,170,209 | 2,296,135 | 1,095,158 | 1,122,348 | 29,222 | 7,588 | 24,560 | 5,707 | 11,552 | 2,296,135 |
| 2,203,462 | -163,322 | 2,040,140 | 1,875,273 | 146,595 | 0 | 0 | 0 | 0 | 18,272 | 2,040,140 |
| 10,777,938 | -2,831,240 | 7,946,698 | 7,397,929 | 369,700 | 102,005 | 11,845 | 22,707 | 5,619 | 36,893 | 7,946,698 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 17,447,744 | -5,164,771 | 12,282,973 | 10,368,360 | 1,638,643 | 131,227 | 19,433 | 47,267 | 11,326 | 66,717 | 12,282,973 | |
| Total | 20,860,599 | -5,164,771 | 15,695,828 | 13,781,215 | 1,638,643 | 131,227 | 19,433 | 47,267 | 11,326 | 66,717 | 15,695,828 |
The Group assessed its receivables for impairment. Allowances were established for receivables that needed to be impaired. Receivables are discussed in greater detail in note 16.8.17 “Receivables”.
| EUR | 31 December 2023 |
|---|---|
| Not past due | 34,478 |
| Past due up to 30 days | 0 |
| Past due from 31 to 60 days | 34,478 |
| Past due from 61 to 90 days | 0 |
| Past due from 91 to 180 days | 0 |
| Past due from 181 days to 1 year | 0 |
| Past due over 1 year | 0 |
| Total | 34,478 |
| Gross amount | 34,478 |
| Allowance | 0 |
| 504,923 | -341,035 | 163,888 | 163,888 | 0 | 0 | 0 | 0 | 0 | 0 | 163,888 |
|---|---|---|---|---|---|---|---|---|---|---|
| 539,401 | -341,035 | 198,366 | 198,366 | 0 | 0 | 0 | 0 |
| Not past due | Past due up to 30 days | Past due from 31 to 60 days | Past due from 61 to 90 days | Past due from 91 to 180 days | Past due from 181 days to 1 year | Past due over 1 year | Total | Gross amount | Allowance |
|---|---|---|---|---|---|---|---|---|---|
| 49,594 | 0 | 49,594 | 49,594 | 0 | 0 | 0 | 0 | 0 | 0 |
| 15,889 | 0 | 15,889 | 15,889 | 0 | 0 | 0 | 0 | 0 | 0 |
| 538,374 | -341,035 | 197,340 | 197,339 | 0 | 0 | 0 | 0 | 0 | 0 |
| 554,263 | -341,035 | 213,228 | 213,228 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 603,857 | -341,035 | 262,823 | 262,822 | 0 | 0 | 0 |
262,822
SavaRe assessed its receivables for impairment. Allowances were established for receivables that needed to be impaired. Receivables are discussed in greater detail in note 16.8.17 “Receivables”.
The Group’s investment contracts include a group of life cycle funds called MYLife-cycle Funds (Slovenian: MOJI skladi življenjskega cikla), relating to supplementary pension business of the company Sava Pokojninska in the accumulation phase. Investment contract liabilities are not included in the consolidated insurance and reinsurance contract liabilities, and are, therefore, not included in the presentation of underwriting risk. Investment contract assets are not included in the consolidated financial investments item, and are, therefore, not included in the presentation of investment portfolio risk.
As regards investment contract assets and liabilities, the Group is exposed to the risk of not achieving the interest-rate guarantees in one of the long-term business funds with an interest-rate guarantee (the MGF135 fund). The interest-rate guarantee on the MGF is 60% of the average annual interest rate on government securities with a maturity of over one year. Liabilities relating to the MGF comprise paid-in premiums, guaranteed return and amounts in excess of the guaranteed return, provided the company achieves it.
In years when the return in excess of guaranteed return is realised, liabilities to the members of the MGF for assets in excess of guaranteed levels of assets are increased; if, however, realised return is below the guaranteed level, this part of liabilities decreases until the provision is fully exhausted. The described control of guaranteed return is carried out at the level of individual members’ accounts. In the event that individual provisions of any account are not sufficient to cover the guaranteed assets, the company is required to make provisions for the difference, up to a maximum of 20% of equity.
The risk of failing to realise interest-rate guarantees is managed primarily through appropriate management of policyholder assets and liabilities, an appropriate investment strategy, an adequate level of the company’s equity and provisioning. The Group tests its risk exposure arising out of interest-rate guarantees through stress tests and scenarios as part of the own risk and solvency assessment. We estimate that the risk of additional payments made in order to achieve the interest-rate guarantees decreased in 2023 relative to 2022, due to favourable capital market conditions.
The value of fund assets of the North Macedonian pension company Sava Penzisko Društvo (two funds: a mandatory and a voluntary fund) is not included in the statement of financial position of the company as these are funds under management (similar treatment as for fund management companies). The role of the North Macedonian pension company is solely to manage the assets; the funds have no interest-rate guarantees. Consequently, the company is not exposed to the risk to which investment contracts are exposed, i.e. failure to realise the interest-rate guarantees.
We estimate that the risk of failure to achieve interest-rate guarantees is medium and slightly decreased in 2023 compared to the previous year due to the favourable financial market conditions.
Operational risk is the risk of loss arising from inadequate or failed internal processes, people or systems, or from external events. Operational risks are not among the main risks faced by the Sava Insurance Group and SavaRe, but they are nevertheless actively monitored and managed at both levels. The assessment of operational risks in the Group companies and at Group level is mainly based on qualitative assessment of the likelihood and financial severity within the risk register. Through regular assessments, the Group companies gain insight into the actual level of their exposure to such risks and take the necessary measures to mitigate them.
According to the qualitative assessment, the exposure of the Sava Insurance Group and Sava Re to operational risk is medium.
The key operational risks of the Sava Insurance Group in 2023, ranked according to their rating in the risk register (from highest to lowest) are set out below. Risks that increased in 2023 are marked as such:
The key operational risks of the Company in 2023, ranked according to their rating in the risk register (from highest to lowest), are set out below. Risks that increased in 2023 are marked as such:
To manage operational risks effectively, the Group companies have processes in place to identify, measure, monitor, manage and report on such risks. Operational risk management processes have also been set up at the Group level and are defined in the operational risk management policy.
The main measures of operational risk management at the individual company and Group levels include:
The Group and the Company estimate the exposure to operational risk to be moderate in 2023, with a slight increase compared to 2022. At Group and company level, risks have increased mainly due to higher assessed risks related to legal and regulatory compliance (including the risk of personal data breaches and the risk that IT plans do not comply with legal or regulatory requirements) and risks related to the management and implementation of processes (including the risk of data loss and the risk of misstatements in reports to the management and supervisory boards, or the risk of errors in consolidated calculations at Group level).
The Sava Insurance Group and SavaRe are exposed to various internal and external strategic risks that may have a negative impact on income or capital adequacy. Strategic risks are by nature very diverse, difficult to quantify and heavily dependent on various (including external) factors.
At Group and individual company level, strategic risks are qualitatively assessed in the risk register by assessing the frequency and potential financial severity of each event. In addition, the EU-based (re)insurance companies seek to assess key strategic risks through qualitative analysis of various scenarios. Combining the two types of analysis provides a picture of the status and changing exposure to these risks.
The key strategic risks of the Sava Insurance Group in 2023, ranked according to their rating in the risk register (from highest to lowest), are set out below. Risks that increased in 2023 are marked as such:
In 2023, the risk of a deterioration in macroeconomic conditions and the resulting impact on the Group’s profitability was still high. The macroeconomic situation was more favourable in 2023, but the geopolitical situation remained uncertain (escalating tensions between Russia and NATO, the outbreak of war between Israel and Hamas). These conflicts pose a major risk of humanitarian crises and disruptions to trade and the flow of raw materials. Energy and climate change continued to dominate talks between countries. In 2023, we saw increased government borrowing and credit rating downgrades, as well as an increase in cyberattacks. The situation is expected to remain uncertain. The Group has already taken the necessary measures to mitigate the impact of these risks and will continue to monitor the situation and take appropriate action.
In 2023, the project for the transition to the new accounting standards IFRS 17 and IFRS 9 was completed at the Group level, and an information security strategy was adopted to establish a high level of cyber resilience for the Sava Insurance Group. The Group will continue to monitor legislative changes to limit regulatory risk, as well as competition in the markets in which it operates and factors affecting the performance of its individual companies.
The key strategic risks of the Company in 2023, ranked according to their rating in the risk register (from highest to lowest), are set out below. Risks that increased in 2023 are marked as such:
Similar to the level of the Sava Insurance Group, the assessment of the risks associated with the deterioration of the macroeconomic situation at SavaRe remained at a high level. The high risk ratings have been maintained due to the ongoing uncertain geopolitical situation, notably the war in Ukraine, tensions between Russia and the West, and the outbreak of war between Israel and Hamas. The significant natural catastrophes that occurred during the summer months (such as storms, floods and wildfires), combined with other loss events, also had an impact on reinsurance rates, putting pressure on retention levels and making it more difficult to obtain adequate reinsurance protection. We also expect these risks to remain high in the coming year. SavaRe will endeavour to ensure that the amounts of cover and premiums in reinsurance contracts adequately reflect the effects of claims inflation and loss experience, and that the Company obtains the best possible retrocession cover under the circumstances.
The Group companies mitigate individual strategic risks primarily through preventive measures, and each has various processes in place to ensure that it can properly identify, measure, monitor, manage, control and report strategic risks to ensure that they are effectively managed. In addition to the relevant organisational units in the Group companies, strategic risks are identified and managed by governance bodies, risk management committees, risk management functions and the key function holders of the risk management system. The identification of the Group’s strategic risks is also the responsibility of the Group’s risk management committee. Strategic risks are also managed by continually monitoring the achievement of the Group companies’ short- and long-term goals and by monitoring regulatory changes in the pipeline and market developments.
The Group recognises that reputation is important to the achievement of its business goals and long-term strategic plans. To this end, its companies have put in place procedures to mitigate reputational risk, such as the establishment of fit and proper procedures applicable to employees in key positions, the systematic operation of a compliance monitoring function, business continuity planning, stress and scenario testing, and contingency and response planning in the event of a risk materialising. Operational indicators, which also indirectly measure reputational risk, have been monitored at the level of all Group companies since 2023. Toward ensuring the Group’s good reputation, each and every employee is responsible for improving the quality of services delivered and overall customer satisfaction.
The Group estimates that its exposure to strategic risks was moderate in 2023, at the same level as in 2022.
The Group monitors both physical and transition risks related to climate change risk. Physical risks, in the form of increased exposure to natural catastrophes and weather-related losses, are most evident in the insurers’ business models. In terms of natural catastrophes, the year 2023 was much more turbulent for the Sava Insurance Group than the previous year, as Slovenia was hit by the most extensive floods in its history.
Investments in sustainable development and preventive activities (renewables, awareness-raising among policyholders) will continue to be factors that will have a significant impact on the scope and scale of losses due to natural catastrophes.
The Group companies are exposed to transition risk associated with the shift to more sustainable business operations, and the Group manages this risk by regularly monitoring changes in sustainability legislation and adapting its business accordingly, including by offering more sustainable products and by actively learning about new customer needs. The Group has implemented its guidelines for responsible underwriting of environmental, social, and governance risks in non-life insurance, which guide the Group companies in the underwriting of risks and Sava Re in the reinsurance of facultative risks. At the Group level, the Sustainable Investment Policy of Sava Insurance Group was updated this year, which, among other things, defines the activities in which the Sava Insurance Company will no longer invest (industries identified as non-sustainable). In this way, the Group manages the risks associated with the transition to sustainable business on the investment side.
Climate change risks are included in the risk register and periodically assessed against other risks. They are linked to the basic risk categories they affect (market, insurance, credit, strategic and operational risks). The main climate risks for the Sava Insurance Group are:
Climate change risks are also assessed periodically in Sava Re. The key climate risks are:
The Group and the Company recognise the importance of the impact of climate change on long-term business performance, and therefore they have included a qualitative and quantitative assessment of climate change risks in the ORSA. The qualitative assessment covers the likelihood and severity of these risks over the long term. The materiality of physical and transition risk exposures was analysed as the basis for the quantitative scenarios in the investment and non-life insurance portfolios, where qualitative analysis indicated that the Group and the Company could experience the greatest impact from climate change.
Taking into account the exposure analysis, three scenarios were constructed, one in the investment portfolio and two in the insurance portfolio. The investment portfolio was tested for the potential adverse impact of the transition to a carbon-free society. Non-life insurance business can be significantly affected by the physical effects of climate change, so the impact of an increase in the frequency and severity of natural catastrophes was tested in the short and long term, focusing on floods (as analyses show that Slovenia is most exposed to this risk in the long term) and hailstorms (indicating that more of these types of events can be expected and that they will be more severe). The short-term scenario also included a European flood scenario, whereas the long-term scenario took into account the increased severity of natural catastrophes due to the effects of climate change, in addition to the increased frequency. The scenarios were based on the investment and insurance portfolios in the 2024 business plan.
In addition to climate change, the Group and Sava Re also monitor other sustainability risks. These are included in the risk register and periodically assessed against other risks. The key sustainability risks of the Company and the Group in 2023, ranked according to their rating in the risk register (from highest to lowest), are set out below:
The Group and the Company estimate that some of the above risks will increase over the strategy period, mainly due to the increased scope and complexity of the new sustainability legislation.
In addition to the above, the Group and the Company monitor other risks that have been assessed as low:
In 2023, the Group and the Company included three new sustainability risks in their regular assessment:
Individual companies also monitor other risks relevant to their particular business.
Movement in cost and accumulated amortisation / impairment losses of intangible assets
| Sava Insurance Group | EUR | Software | Goodwill | Other intangible assets | Intangible assets in progress | Total |
|---|---|---|---|---|---|---|
| Cost | 31 December 2022 | 19,008,519 | 40,877,792 | 35,013,365 | 13,315,699 | 108,215,375 |
| Additions | 729,733 | - | 1,969,375 | 1,988,754 | 4,687,862 | |
| Transfer to use | 11,177,792 | - | - | -11,177,792 | 0 | |
| Disposals | -333,078 | - | -727,347 | -17,243 | -1,077,668 | |
| Reductions – subsidiaries – disposal | 2,961 | - | - | - | 2,961 | |
| Exchange differences | -2,845 | - | -4,697 | -280 | -7,822 | |
| 31 December 2023 | 30,583,082 | 40,877,792 | 36,250,696 | 4,109,138 | 111,820,708 |
Accumulated amortisation and impairment losses
| 31 December 2022 | 12,977,943 | 8,444,979 | 20,897,161 | - |
|---|---|---|---|---|
| EUR | Software | Goodwill | Other intangible assets | Intangible assets in progress | Total | |
|---|---|---|---|---|---|---|
| Cost | 31 December 2021 | 17,087,942 | 40,877,792 | 34,524,529 | 9,915,405 | 102,405,668 |
| Additions | 907,178 | - | 500,930 | 4,521,930 | 5,930,038 | |
| Transfer to use | 1,121,623 | - | - | -1,121,623 | 0 | |
| Disposals | -107,235 | - | -1,502 | - | -108,737 | |
| Exchange differences | -989 | - | -10,592 | -13 | -11,594 | |
| 31 December 2022 | 19,008,519 | 40,877,792 | 35,013,365 | - | - | |
| Carrying amount as at 31 December 2022 | 6,030,576 | 32,432,813 | 14,116,204 | 13,315,699 | 65,895,292 | |
| Carrying amount as at 31 December 2023 | 14,359,460 | 32,432,813 | 14,247,420 | 4,109,138 | 65,148,831 |
| Additions | 3,527,113 | - | 1,107,129 | - | 4,634,242 |
|---|---|---|---|---|---|
| Disposals | -282,264 | - | - | - | -282,264 |
| Reductions – subsidiaries – disposal | 2,996 | - | - | - | 2,996 |
| Exchange differences | -2,166 | - | -1,014 | - | -3,180 |
| 31 December 2023 | 16,223,622 | 8,444,979 | 22,003,276 | 0 | 46,671,877 |
| 31 December 2021 | 31 December 2022 | |
|---|---|---|
| Software | 11,583,410 | 12,977,943 |
| Other intangible assets | 8,444,979 | 8,444,979 |
| Intangible assets in progress | 19,767,402 | 20,897,161 |
| Total | - | 42,320,083 |
| 31 December 2021 | 31 December 2022 | |
|---|---|---|
| Software | 5,504,532 | 6,030,576 |
| Other intangible assets | 32,432,813 | 32,432,812 |
| Intangible assets in progress | 14,757,127 | 14,116,204 |
| Total | 9,915,405 | 13,315,699 |
| 31 December 2022 | |
|---|---|
| Software | 3,017,251 |
| Other intangible assets | 41,911 |
| Intangible assets in progress | 2,803,082 |
| Total | 5,862,244 |
| 31 December 2022 | |
|---|---|
| Software | 53,569 |
| Other intangible assets | 10,059 |
| Intangible assets in progress | 910,072 |
| Total | 973,700 |
| 31 December 2022 | |
|---|---|
| Software | 867,459 |
| Other intangible assets | - |
| Intangible assets in progress | -867,459 |
| Total | 0 |
| 31 December 2022 | |
|---|---|
| Software | - |
| Other intangible assets | -6,623 |
| Intangible assets in progress | - |
| Total | -6,623 |
| 31 December 2023 | |
|---|---|
| Software | 3,938,279 |
| Other intangible assets | 45,347 |
| Intangible assets in progress | 2,845,695 |
| Total | 6,829,321 |
| Software | Other intangible assets | Intangible assets in progress | Total | ||
|---|---|---|---|---|---|
| Cost | 31 December 2021 | 2,569,361 | 34,715 | 2,141,491 | 4,745,568 |
| Additions | 40,777 | 8,698 | 1,068,704 | 1,118,179 | |
| Transfer to use | 407,113 | - | -407,113 | 0 | |
| Disposals | - | -1,502 | - | -1,502 | |
| 31 December 2022 | 3,017,251 | 41,911 | 2,803,082 | 5,862,245 |
| Accumulated amortisation and impairment losses | ||
|---|---|---|
| 31 December 2021 | 1,551,538 | |
| Additions | 242,323 | |
| 31 December 2022 | 1,793,861 |
| Carrying amount as at 31 December 2021 | 1,017,824 | 34,715 | 2,141,491 | 3,194,031 | |
|---|---|---|---|---|---|
| Carrying amount as at 31 December 2022 | 1,223,391 | 41,911 | 2,803,082 | 4,068,384 | |
| Carrying amount as at 31 December 2023 | 1,783,893 | 45,347 | 2,845,695 | 4,674,935 |
1,223,391
41,911
2,803,082
4,068,384
The Group’s other intangible assets consist mainly of the assessed value of a customer list of EUR 8,135,290 (2022: EUR 8,537,034) and contractual customer relationships of EUR 3,520,000 (2022: EUR 4,160,000).
Assets in progress relate to new IT solutions acquired, in particular to prepare for the implementation of the new accounting standards IFRS 17 and IFRS 9, and to support the core business of Zavarovalnica Sava and Sava Re. The majority of these IT solutions were put into operation in 2023.
| Sava Insurance Group | EUR |
|---|---|
| Total amount carried forward as at 31 December 2022 | 32,432,813 |
| Balance as at 31 December 2023 | 32,432,813 |
| Sava Neživotno Osiguranje (SRB) | 4,565,229 |
| Sava Osiguranje (MNE) | 3,648,534 |
| Zavarovalnica Sava | 4,761,733 |
| Sava Agent | 2,718 |
| TBS Team 24 | 2,787,676 |
| Sava Penzisko Društvo | 1,666,838 |
| Sava Infond | 15,000,085 |
| 305 |
| Sava Insurance Group | EUR |
|---|---|
| Total amount carried forward as at 31 December 2021 | 32,432,813 |
| Balance as at 31 December 2022 | 32,432,813 |
| Sava Neživotno Osiguranje (SRB) | 4,565,229 |
| Sava Osiguranje (MNE) | 3,648,534 |
| Zavarovalnica Sava | 4,761,733 |
| Sava Agent | 2,718 |
| TBS Team 24 | 2,787,676 |
| Sava Penzisko Društvo | 1,666,838 |
| Sava Infond | 15,000,085 |
In the impairment testing of goodwill arising out of the acquired companies listed in the table at the beginning of this section (except for Zavarovalnica Sava), the recoverable amount of each cash-generating unit as at 31 December 2023 exceeded the carrying amount including goodwill belonging to the unit for all companies. The assumptions used to calculate the recoverable amount are described below. For Zavarovalnica Sava, where the estimated value exceeded the carrying amount by a very large margin, an impairment test was performed to determine whether there were any indications of impairment. As no indications were found, no valuation was necessary.
The cash flows are derived from the strategic plans of the companies constituting the cash-generating units. The companies’ plans have been approved by the parent company and adopted by the companies’ governing bodies. The supervisory board of Sava Re d.d. adopted the business plan of the Sava Insurance Group for 2024 on 13 December 2023. The business plans of the Group companies were prepared on the basis of the following key strategic directions:
The valuations used a long-term growth rate (g) of the risk-free rate of return (2.3%) to estimate the residual value beyond the projection period. The discount rate methodology is explained in section 16.4.7 “Goodwill”.
| Sava Neživotno Osiguranje (SRB) | Sava Osiguranje (MNE) | Sava Penzisko (MKD) | Sava Infond (SVN) | TBS Team 24 (SVN) |
|---|---|---|---|---|
| Discount rate (%) | 12.2 | 13.2 | 11.9 | 10.8 |
2.3
2.3
2.3
2.3
2.3
Sava Insurance Group
EUR
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total | ||
| Cost | 31 December 2022 | 5,216,520 | 63,859,517 | 27,035,610 | 521,439 | 57,768 | 96,690,854 |
| Additions – acquisition of subsidiary | - | - | 4,530 | - | - | 4,530 | |
| Additions | - | 993,277 | 1,156,387 | 94,224 | 2,647,495 | 4,891,383 | |
| Reclassification | - | 100,000 | - | - | - | 100,000 | |
| Transfer to use | - | 200,038 | 2,196,210 | 7,791 | -2,404,039 | 0 | |
| Disposals | -271,157 | -4,695,392 | -3,778,635 | -84,504 | - | -8,829,688 | |
| Exchange differences | - | -1,538 | -1,735 | -105 | 1 | -3,377 | |
| 31 December 2023 | 4,945,363 | 60,455,902 | 26,612,367 | 538,845 | 301,225 | 92,853,702 |
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total | |
|---|---|---|---|---|---|---|
| Cost | 14,956,675 | 19,106,449 | 192,104 | 34,255,228 | ||
| Additions | 1,725,218 | 3,069,783 | 43,250 | 4,838,251 | ||
| Reclassification | 29,224 | 29,224 | ||||
| Disposals | -2,386,950 | -3,477,805 | -88,920 | -5,953,675 | ||
| Exchange differences | -921 | -1,201 | -2 | -2,124 | ||
| 31 December 2023 | 14,323,246 | 18,697,226 | 146,432 | 33,166,904 |
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total | |
|---|---|---|---|---|---|---|
| 5,216,520 | 48,902,842 | 7,929,161 | 329,335 | 57,768 | 62,435,626 |
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total | |
|---|---|---|---|---|---|---|
| 4,945,363 | 46,132,656 | 7,915,141 | 392,413 | 301,225 | 59,686,798 |
| Cost | 31 December 2021 | 5,577,582 | 56,065,061 | 25,704,208 | 589,920 | 9,460,483 | 97,397,254 |
|---|---|---|---|---|---|---|---|
| Additions | 106,390 | 1,316,012 | 213,018 | 13,217,555 | 14,852,975 | ||
| Reclassification | -112,267 | -8,195,699 |
| -442,409 | -15,945 | -8,766,320 | |
|---|---|---|---|
| Transfer to use | 433,464 | 19,171,538 | 3,015,267 |
| -22,620,269 | 0 | Disposals | |
| -676,883 | -3,289,830 | -2,558,369 | -265,669 |
| -6,790,751 | Reductions – subsidiaries – disposal | -5,376 | |
| -5,376 | |||
| Exchange differences | 2,057 | 901 | |
| 115 | -1 | 3,072 | 31 December 2022 |
| 5,216,520 | 63,859,517 | 27,035,610 | 521,439 |
| 57,768 | 96,690,854 | Accumulated depreciation and impairment losses | 31 December 2021 |
| 22,099,361 | 18,779,073 | 186,264 | |
| 41,064,698 | Additions | ||
| 1,010,884 | 3,054,865 | 34,560 | |
| 4,100,309 | Reclassification | ||
| -7,537,181 | -495,875 | -16,081 | |
| -8,049,137 | Disposals | ||
| -616,422 | -2,232,056 | -12,641 | |
| -2,861,119 | Exchange differences | ||
| 33 | 442 | 2 | |
| -477 | 31 December 2022 | 0 | |
| 14,956,675 | 19,106,449 | 192,104 | |
| 34,255,228 |
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total |
|---|---|---|---|---|---|
| 5,577,582 | 33,965,700 | 6,925,135 | 403,656 | 9,460,483 | 56,332,556 |
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total |
|---|---|---|---|---|---|
| 5,216,520 | 48,902,842 | 7,929,161 | 329,335 | 57,768 | 62,435,626 |
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total | |
|---|---|---|---|---|---|---|
| 151,373 | 2,449,707 | 1,538,295 | 274,193 | - | 4,413,567 | |
| Additions | - | 0 | 424,457 | - | - | 424,457 |
| Disposals | - | 0 | -207,382 | - | - | -207,382 |
| 31 December 2023 | 151,373 | 2,449,707 | 1,755,371 | 274,193 | 0 | 4,630,643 |
| Land | Buildings | Equipment | Other items of property, plant and equipment | In progress | Total | |
|---|---|---|---|---|---|---|
| - | 823,917 | 992,621 | 43,084 | - | 1,859,622 | |
| Additions | - | 33,311 | 194,674 | 10,287 | - | 238,273 |
| Disposals | - | 0 | -142,410 | - | - | -142,410 |
| 31 December 2023 | 0 |
| Carrying amount as at 31 December 2022 | 857,228 | 1,044,885 | 53,371 | 0 | 1,955,484 | |
|---|---|---|---|---|---|---|
| Carrying amount as at 31 December 2023 | 151,373 | 1,625,790 | 545,674 | 231,109 | 0 | 2,553,945 |
| Cost | 31 December 2021 | Additions | Reclassification | Transfer to use | Disposals | 31 December 2022 |
|---|---|---|---|---|---|---|
| Land | 151,373 | - | - | - | - | 151,373 |
| Buildings | 2,417,757 | - | 31,950 | - | - | 2,449,707 |
| Equipment | 1,492,149 | 366,711 | 1,360 | 42,434 | -364,359 | 1,538,295 |
| Other items of property, plant and equipment | 314,359 | 207,242 | - | - | -247,408 | 274,193 |
| In progress | 10,554 | 31,880 | - | - | - | 0 |
| Total | 4,386,192 | 605,833 | 33,310 | 0 | -611,768 | 4,413,567 |
| Accumulated depreciation and impairment losses | 31 December 2021 | Additions | Reclassification |
|---|---|---|---|
| Land | - | - | - |
| Buildings | 787,359 | 33,150 | 3,408 |
| Equipment | 1,086,070 | 185,554 | - |
| Other items of property, plant and equipment | 48,551 | 7,174 | - |
| In progress | - | - | - |
| Total | 1,921,980 | 225,878 | - |
| Sava Insurance Group | EUR | Land and buildings | Motor vehicles | Computers and IT equipment | Total |
|---|---|---|---|---|---|
| As at 31 December 2022 | 7,035,677 | 328,038 | 61,961 | 7,425,676 | |
| Depreciation of right-of-use assets | -1,610,826 | -82,046 | -23,163 | -1,716,035 | |
| Change in right of use | 2,232,598 | 649,726 | 2,882,324 | ||
| New contracts | 654,028 | 84,640 | 738,668 | ||
| Derecognition of right-of-use assets | -524,464 | -232,771 | -757,235 | ||
| As at 31 December 2023 | 7,787,013 | 747,587 | 38,798 | 8,573,398 |
| Sava Insurance Group | EUR | Land and buildings | Motor vehicles | Computers and IT equipment | Total |
|---|---|---|---|---|---|
| As at 31 December 2021 | 6,967,008 | 405,669 | 12,139 | 7,384,816 | |
| Depreciation of right-of-use assets | -1,901,647 | -204,825 | -19,221 |
| -2,125,693 | Change in right of use | 369,421 | 79,545 | - | 448,966 |
|---|---|---|---|---|---|
| New contracts | 2,115,345 | 197,997 | 69,043 | 2,382,385 | |
| Derecognition of right-of-use assets | -514,450 | -150,348 | - | -664,798 | |
| As at 31 December 2022 | 7,035,677 | 328,038 | 61,961 | 7,425,676 |
| As at 31 December 2022 | 320,124 | 320,124 |
|---|---|---|
| Depreciation of right-of-use assets | -82,608 | -82,608 |
| Change in right of use | 20,501 | 20,501 |
| New contracts | 19,141 | 19,141 |
| Derecognition of right-of-use assets | - | - |
| As at 31 December 2023 | 277,158 | 277,158 |
| As at 31 December 2021 | 204,879 | 204,879 |
|---|---|---|
| Depreciation of right-of-use assets | -74,135 | -74,135 |
| Change in right of use | 193,899 | 193,899 |
| Derecognition of right-of-use assets | -4,519 | -4,519 |
| As at 31 December 2022 | 320,124 | 320,124 |
| Sava Insurance Group | Sava Re | EUR | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|---|---|
| Depreciation/amortisation | 1,716,035 | 2,125,693 | 82,608 | 74,135 | ||
| Land and buildings | 1,610,826 | 1,901,647 | 82,608 | 74,135 | ||
| Motor vehicles | 82,046 | 204,825 | - | - | ||
| Computers and IT equipment |
| Sava Insurance Group | Sava Re | EUR | 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|---|---|---|
| Cash flow from leases | 2,579,753 | 2,265,303 | 87,084 | 78,444 |
| Sava Insurance Group | Sava Re | EUR | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|---|---|---|
| Lease liability – maturity up to 1 year | 2,493,988 | 2,541,330 | 87,347 | 78,425 | |||
| Lease liability – maturity over 1 year | 6,350,749 | 5,115,859 | 193,017 | 242,063 | |||
| Total | 8,844,737 | 7,657,189 | 280,364 | 320,488 |
136 The disclosure also includes long-term liabilities under finance lease contracts.
| Sava Insurance Group | Sava Re | EUR | Short-term | Long-term | Short-term | Long-term | 31 December 2022 | |
|---|---|---|---|---|---|---|---|---|
| 2,541,330 | 5,115,859 | 78,425 | 242,063 | |||||
| New leases | - | 3,528,246 | - | 39,642 | ||||
| Repayments | - | -2,579,753 | - | -87,084 | ||||
| Interest attribution | - | 239,055 | - |
| 31 December 2023 | Short-term | Long-term | Short-term | Long-term |
|---|---|---|---|---|
| Transfer to current liabilities | -47,342 | 47,342 | 8,922 | -8,922 |
| 31 December 2022 | 2,541,330 | 5,115,859 | 78,425 | 242,063 |
| New leases | - | 2,376,921 | - | 193,218 |
| Repayments | - | -2,265,303 | - | -78,444 |
| Interest attribution | - | 150,489 | - | 1985 |
| Transfer to current liabilities | -130,787 | -130,787 | 3,443 | -3,443 |
| 31 December 2021 | 2,672,117 | 4,984,539 | 74,982 | 128,746 |
Leaseterms range from 1 to 10 years for land and buildings (one contract for up to 24 years), 1 to 6 years for cars and 6 years for hardware and IT equipment. For leases with an indefinite term, the Group has set the lease term at 5 years. Group companies also act as lessors. The majority of these leases relate to land and buildings as disclosed in note 16.8.5 “Investment property”.
| Sava Insurance Group | EUR |
|---|---|
| Offset value as at 31 December 2022 | -13,611,691 |
| Included in income statement | -139,380 |
| Included in other comprehensive income | 3,544,920 |
| Other | 0 |
| Exchange differences | 134 |
| Offset value as at 31 December 2023 | -10,206,017 |
| Deferred tax assets | 461,803 |
| Deferred tax liabilities | -10,667,820 |
| Insurance contracts | -535,725 |
| - | - |
| Reinsurance contracts | 777,881 |
| 0 | -5 |
| Financial investments | 19,449,192 |
| -306,284 | -7,282,489 |
| 1,242,466 | 471 |
| Offset value | 13,103,356 |
| - | 17,905,300 |
| Offset value as at 31 December 2021 | Included in income statement | Included in other comprehensive income | Other | Exchange differences | Offset value as at 31 December 2022 |
|---|---|---|---|---|---|
| Deferred tax assets | 6,979,667 | - | -20,591,643 | - | 285 |
| Deferred tax liabilities | -13,611,691 | 42,541 | -13,654,232 | - | - |
| Insurance contracts | -3,037,462 | - | 2,501,738 | - | -1 |
| Reinsurance contracts | -535,725 | 330,892 | -866,617 | - | - |
| Financial investments | -9,836,697 | 150,188 | 29,105,184 | 8,251 | 1,635 |
| Short-term operating receivables | 275,515 | - | - | - | - |
| -2,794,235 | -1,836,345 | -2,962,247 | 10,738,911 | 1,725 | 3,147,809 | 20,325,937 | -17,178,128 | 310 |
|---|---|---|---|---|---|---|---|---|
| Offset value as at 31 December 2022 | Included in income statement | Included in other comprehensive income | Other | Offset value as at 31 December 2023 |
|---|---|---|---|---|
| Deferred tax assets | -1,685,669 | 0 | 1,096,411 | -589,258 |
| Deferred tax liabilities | 112,237 | -701,496 | Reinsurance contracts | 270,415 |
| Financial investments | 5,148,067 | 30,796 | -1,444,764 | 1,100,681 |
| 4,834,780 | 4,965,493 | -130,712 | Short-term operating receivables | |
| 275,515 | 382,962 | 658,477 | ||
| Provisions for jubilee benefits and severance pay (retirement) | 53,332 | 9,045 | -624 |
| Item | Netted value as at 31 December 2021 | Included in income statement | Included in other comprehensive income | Offset value as at 31 December 2022 |
|---|---|---|---|---|
| Deferred tax assets | 1,433,097 | - | -3,118,766 | -1,685,669 |
| Reinsurance contracts | -587,509 | - | 857,924 | 270,415 |
| Financial investments | 838,809 | -490,034 | 4,799,292 | 5,148,067 |
| Short-term operating receivables | 275,515 | 0 | - | 275,515 |
| Provisions for jubilee benefits and severance pay (retirement) | 53,777 | -446 | - | 53,332 |
| Provision for tax losses | 2,111,130 | -467,058 | - | 1,644,072 |
| Deferred tax liabilities due to transition to the new standards | -1,414,696 | -1,258,785 | - | -2,673,481 |
| Total | 2,710,123 | -2,216,322 | 2,538,450 |
In 2023, deferred tax assets and liabilities were accounted for using tax rates that the management believes will be used to tax the differences. Tax has been accounted for at the statutory rates applicable to each Group company. The tax rate applicable to most Group companies (Slovenia) is 19%, valid until 31 December 2023. Deferred tax assets and liabilities are restated at the new rate of 22% effective from 1 January 2024 (2022: 19%), and 9%–18% for other companies (Croatia 18%, Serbia 15%, Kosovo and North Macedonia 10%, Montenegro – a progressive scale of 9%–15% applies). The following table shows the restatement to the new tax rate for the Slovenia-based companies.
| EUR | Restatement at new tax rate (22%) | Restatement at new tax rate (22%) | Included in income statement | Included in other comprehensive income | |
|---|---|---|---|---|---|
| Sava Re | Insurance contracts | - | -1,301,630 | - | -80,354 |
| Reinsurance contracts | - | 28,897 | - | 16,591 | |
| Financial investments | 242,001 | -147,789 | 212,012 | 446,270 | |
| Short-term operating receivables | 89,792 | - | 89,792 | - | |
| Provisions for jubilee benefits and severance pay (retirement) | 99,271 | 26,023 | 9,045 | -624 |
| EUR | Land | Buildings | Equipment | In progress | Total | |
|---|---|---|---|---|---|---|
| Cost | 31 December 2022 | 2,649,470 | 21,866,752 | 538,765 | - | 25,054,987 |
| Additions | - | 2,425,330 | - | 193,322 | 2,618,652 | |
| Transfer to use | - | 177,278 | 16,044 | -193,322 | 0 | |
| Disposals | -28,650 | - | - | - | -28,650 | |
| Exchange differences | 40 | -6,351 | - | - | -6,311 | |
| 31 December 2023 |
| Cost | Land | Buildings | Equipment | In progress | Total |
|---|---|---|---|---|---|
| 31 December 2021 | 2,158,279 | 13,920,291 | 186,075 | - | 16,264,645 |
| Additions | - | - | - | 9,135,430 | 9,135,430 |
| Reclassification | - | 14,285 | -15,459 | - | -1,174 |
| Transfer to use | 756,622 | 8,006,050 | 372,758 | - | - |
| Accumulated depreciation and impairment losses | 31 December 2022 | 31 December 2023 |
|---|---|---|
| 28,610 | 0 | |
| 2,138,903 | 2,564,852 | |
| 91,715 | 183,548 | |
| - | 0 | |
| 2,259,228 | 2,748,400 |
| Carrying amount as at 31 December 2022 | Carrying amount as at 31 December 2023 |
|---|---|
| 2,620,860 | 2,620,860 |
| 19,727,849 | 21,898,157 |
| 447,050 | 371,261 |
| 0 | 0 |
| 22,795,759 | 24,890,278 |
| Cost | Land | Buildings | Equipment | Total | |
|---|---|---|---|---|---|
| 31 December 2021 | 2,129,639 | 12,056,744 | 94,217 | 0 | 14,280,600 |
| 31 December 2022 | 2,620,860 | 19,727,848 | 447,050 | 0 | 22,795,759 |
| Accumulated depreciation and impairment losses | Land | Buildings | Equipment | Total | |
|---|---|---|---|---|---|
| 31 December 2021 | 28,640 | 1,863,547 | 91,858 | - | 1,984,045 |
| Additions | - | 319,549 | 19,768 | - | 339,317 |
| Reclassification | - | -34,069 | -15,331 | - | -49,400 |
| Disposals | - | -10,711 | -4,580 | - | -15,291 |
| Exchange differences | -30 | 587 | - | - | 557 |
| 31 December 2022 | 28,610 | 2,138,903 | 91,715 | 0 | 2,259,228 |
| Disposals | -266,147 | -76,841 | -4,593 | - | -347,581 |
|---|---|---|---|---|---|
| Exchange differences | 716 | 2,967 | -16 | - | 3,667 |
| 31 December 2022 | 2,649,470 | 21,866,752 | 538,765 | 0 | 25,054,987 |
| EUR | Land | Buildings | Equipment | Total | |
|---|---|---|---|---|---|
| Cost | 31 December 2021 | 1,497,711 | 7,058,306 | 83,822 | 8,639,839 |
| Reclassification | - | -31,950 | -1,376 | -33,326 | |
| 31 December 2022 | 1,497,711 | 7,026,356 | 82,446 | 8,606,513 | |
| Accumulated depreciation and impairment losses | 31 December 2021 | - | 720,320 | 19,825 | 740,145 |
| Additions | - | 141,282 | 7,929 | 149,211 | |
| Reclassification | - | -3,408 | -1,128 | ||
| 31 December 2023 | 1,497,711 | 7,036,401 | 82,446 | 8,616,558 | |
| Accumulated depreciation and impairment losses | 31 December 2022 | - | 858,194 | 26,626 | 884,820 |
| Additions | - | 141,642 | 7,928 | 149,570 | |
| 31 December 2023 | 0 | 999,836 | 34,554 | 1,034,390 | |
| Carrying amount as at 31 December 2022 | 1,497,711 | 6,168,162 | 55,820 | 7,721,693 | |
| Carrying amount as at 31 December 2023 | 1,497,711 | 6,036,565 | 47,892 | 7,582,168 |
31 December 2022
| -4,536 | 0 | 858,194 | 26,626 | 884,820 |
|---|---|---|---|---|
| Carrying amount as at 31 December 2021 | 1,497,711 | 6,337,985 | 63,997 | 7,899,693 |
| Carrying amount as at 31 December 2022 | 1,497,711 | 6,168,162 | 55,820 | 7,721,693 |
The Group generated income of EUR 1,444,937 million from the lease of its investment property in 2023 (2022: EUR 1,368,236). Maintenance costs associated with investment property are either included in the rent or charged to the lessee. Costs covered by the Group in 2023 totalled EUR 110,340 (2022: EUR 202,919). We estimate that the Group will continue to lease its investment property in 2024 and over the next five-year period in a similar scope as in 2023 and generate a similar amount of lease income.
In 2023, the Group generated income of EUR 867,573 by leasing out its investment property (2022: EUR 829,030). Maintenance costs associated with investment property are either included in rent or charged to the lessees in a proportionate amount.
The investment properties are unencumbered by any third-party rights. The fair values of investment property are presented in note 16.8.34 “Fair values of assets and liabilities”.
| EUR | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
|---|---|---|---|---|
| Investments in subsidiaries | 0 | 0 | 305,666,793 | 303,360,793 |
| Investments in associates | 23,834,620 | 21,856,109 | 19,575,000 | 19,575,000 |
| Total | 23,834,620 | 21,856,109 | 325,241,793 | 322,935,793 |
| EUR | 31 December 2022 | Acquisition/ | 31 December 2023 | recapitalisation | Holding | Value | Value | Holding | Value |
|---|---|---|---|---|---|---|---|---|---|
| Zavarovalnica Sava | 100.00% | 123,364,958 | 0 | 100.00% | 123,364,958 | ||||
| Sava Neživotno Osiguranje (SRB) | 100.00% | 16,143,299 | 0 | 100.00% | 16,143,299 | ||||
| Illyria | 100.00% | 9,563,104 | 0 | 100.00% | 9,563,104 | ||||
| Sava Osiguruvanje (MKD) | 93.89% | 8,905,868 | 0 | 93.89% | 8,905,868 | ||||
| Sava Osiguranje (MNE) | 100.00% | 15,373,019 | 0 |
| 100.00% | 15,373,019 |
|---|---|
| 100.00% | 5,142,278 |
|---|---|
| 100.00% | 6,417,800 |
|---|---|
| 78.50% | 3,326,504 |
|---|---|
| 100.00% | 19,714,494 |
|---|---|
| 85.00% | 24,583,778 |
|---|---|
| 100.00% | 66,789,797 |
|---|---|
| 100.00% | 0 | 1,250,000 |
|---|---|---|
| 80.00% | 0 | 1,056,000 |
|---|---|---|
| 303,360,793 | 2,306,002 | 305,666,793 |
|---|---|---|
| (-) | (-) |
|---|---|
| 100.00% | 123,364,958 | 0 | 0 |
|---|---|---|---|
| 100.00% | 16,143,299 | 0 |
|---|---|---|
| Company | Percentage | Value | Change | Adjusted Value |
|---|---|---|---|---|
| Illyria | 100.00% | 16,143,299 | ||
| Sava Osiguruvanje (MKD) | 93.86% | 10,094,070 | -1,188,202 | |
| Sava Osiguranje (MNE) | 100.00% | 15,373,019 | ||
| Illyria Life | 100.00% | 4,035,893 | ||
| Sava Životno Osiguranje (SRB) | 100.00% | 5,142,278 | ||
| S Estate | 100.00% | 5,996 | 0 | -5,996 |
| Sava Pokojninska | 100.00% | 6,417,800 | ||
| TBS Team 24 | 78.50% | 3,326,504 | ||
| Sava Penzisko Društvo | 100.00% | 19,714,494 | ||
| Sava Infond | 85.00% | 24,583,778 | ||
| Vita | 100.00% | 66,789,797 | ||
| Total | 304,554,991 | -1,188,202 | -5,996 | |
| 303,360,793 |
| Holding | Value | Holding | Value | Share of voting rights (%) |
|---|---|---|---|---|
| DCB | 50.00% | 21,856,109 | 1,978,512 | 50.00% |
| Total | 21,856,109 | 1,978,512 | 23,834,620 |
| Holding | Value | Holding | Value | Share of voting rights (%) |
|---|---|---|---|---|
| DCB | 50.00% | 20,479,729 | 1,376,380 | 50.00% |
| G2I | 17.50% | 0 | -90,649 | 17.50% |
| Total | 20,479,729 | 1,285,731 | 21,856,109 |
| Holding | Value | Holding | Value | Share of voting rights (%) |
|---|---|---|---|---|
| DCB | 50.00% | 19,575,000 | 50.00% | |
| Total | 19,575,000 |
| Holding | Value | Share of voting rights (%) |
|---|---|---|
| DCB | 50.00% | 19,575,000 |
| G2I | 17.50% | 0 |
| Total | 25.00% | 19,575,000 |
| DCB | G2I | |
|---|---|---|
| Value of assets | 53,009,611 | 1,250,937 |
| Liabilities | 20,190,187 | 1,127,753 |
| Equity | 32,819,424 | 123,184 |
| Income | 30,401,886 | 3,373,482 |
| Profit or loss | 3,957,023 | -517,993 |
| Part of the profit or loss attributable to the Group | 1,978,512 | -90,649 |
In 2023, the Sava Insurance Group sold its associate G2I. It realised a gain on the sale of EUR 112,595.
The assumptions used in the valuation are described in more detail in 16.4.13 “Investments in subsidiaries and associates”.
The financial investments of the Sava Insurance Group amounting to EUR 2,012.5 million as at 31 December 2023 (31 December 2022: EUR 1,776.1 million) include, in addition to investments supporting non-life and traditional life insurance liabilities, investments supporting unit-linked life insurance liabilities and own funds.
| Measured at amortised cost | Measured at fair value through profit or loss | Measured at fair value through other comprehensive income | ||
|---|---|---|---|---|
| Total | 31 December 2023 | 76,303,166 | 19,701,111 | 1,260,177,155 |
| 1,356,181,432 | 25,616,171 | - | - | 25,616,171 |
|---|---|---|---|---|
| Government bonds | 37,676,521 | 2,105,477 | 811,741,040 | 851,523,038 |
| Corporate bonds | 12,256,335 | 17,595,634 | 448,436,115 | 478,288,084 |
| Loans granted | 754,139 | - | - | 754,139 |
| Equity instruments | 0 | 569,153,261 | 15,969,890 | 585,123,151 |
| Shares | - | 5,784,383 | 15,969,890 | 21,754,273 |
| Mutual funds | - | 563,368,878 | - | 563,368,878 |
| Investments in infrastructure funds | - | 57,339,858 | - | 57,339,858 |
| Investments in real-estate funds | - | 13,888,192 | - | 13,888,192 |
| Total | 76,303,166 | 660,082,422 | 1,276,147,045 | 2,012,532,633 |
| Debt instruments | 64,428,280 | 20,729,025 | 1,140,474,230 | 1,225,631,535 |
|---|---|---|---|---|
| Deposits and CDs | 18,848,261 | - | - | 18,848,261 |
| Government bonds | 32,143,970 | 253,420 | 729,392,990 | 761,790,380 |
| Corporate bonds | 12,241,228 | 20,475,605 | 411,081,240 | 443,798,073 |
| Loans granted | 1,194,821 | - | - | 1,194,821 |
| Equity instruments | 0 | 465,219,427 | 14,927,677 |
| Shares | 9,956,247 | 14,927,677 | 24,883,924 | |
|---|---|---|---|---|
| Mutual funds | 455,263,180 | - | 455,263,180 | |
| Investments in infrastructure funds | 53,856,375 | - | 53,856,375 | |
| Investments in real-estate funds | 16,497,061 | - | 16,497,061 | |
| Total | 64,428,280 | 556,301,888 | 1,155,401,907 | 1,776,132,075 |
| Measured at amortised cost | Measured at fair value through profit or loss | Measured at fair value through other comprehensive income | Total | |
|---|---|---|---|---|
| Debt instruments | 5,811,776 | 4,320,636 | 311,285,620 | 321,418,032 |
| Deposits and CDs | 1,021,347 | - | - | 1,021,347 |
| Government bonds | 2,075,525 | - | 227,516,295 | 229,591,819 |
| Corporate bonds | - | 4,320,636 | 83,769,325 | 88,089,961 |
| Loans granted | 2,714,904 | - | - | 2,714,904 |
| Equity instruments | 0 | 7,997,287 | 0 | 7,997,287 |
| Shares | - | 3,538,972 | - | 3,538,972 |
| Mutual funds | - | 4,458,315 | - | 4,458,315 |
| Investments in infrastructure funds | - | 21,084,448 | - | 21,084,448 |
| Investments in real-estate funds | - | 3,884,428 | - | 3,884,428 |
| Total | 5,811,776 | 37,286,800 |
| Measured at amortised cost | Measured at fair value through profit or loss | Measured at fair value through other comprehensive income | Total | ||
|---|---|---|---|---|---|
| 31 December 2022 | Debt instruments | 3,871,964 | 5,276,003 | 280,840,335 | 289,988,303 |
| Deposits and CDs | - | - | - | 0 | |
| Government bonds | 2,075,272 | - | 212,123,409 | 214,198,680 | |
| Corporate bonds | - | 5,276,003 | 68,716,927 | 73,992,930 | |
| Loans granted | 1,796,693 | - | - | 1,796,693 | |
| Equity instruments | 0 | 11,014,588 | 0 | 11,014,588 | |
| Shares | - | 7,080,606 | - | 7,080,606 | |
| Mutual funds | - | 3,933,982 | - | 3,933,982 | |
| Investments in infrastructure funds | - | 18,843,871 | - | 18,843,871 | |
| Investments in real-estate funds | - | 4,584,214 | - | 4,584,214 | |
| Total | 3,871,964 | 39,718,676 | 280,840,335 | 324,430,976 |
The Sava Insurance Group held 1.6% of financial investments constituting subordinated instruments for the issuer (31 December 2022: 1.9%). The total value of these investments was EUR 31.1 million (31 December 2022: EUR 33.4 million).
Sava Re held 1.2% of financial investments that constitute subordinated instruments for the issuer (31 December 2022: 1.6%). The total value of these investments was EUR 4.3 million (31 December 2022: EUR 5.3 million).
The Group measures its investments in subordinated debt instruments through profit or loss or through accumulated other comprehensive income.
| EUR | 31 December 2023 | 31 December 2022 | 1 January 2022 | |
|---|---|---|---|---|
| AENA S.M.E. SA | 640,811 | 458,057 | 542,014 | |
| AMGEN INC. | 591,418 | 558,719 | 450,377 | |
| AUTOROUTES DU SUD DE LA FRANCE | 0 | 0 | 737,055 | |
| BAE SYSTEMS PLC |
| Company | Financial Data | ||
|---|---|---|---|
| 31 December 2023 | 31 December 2022 | 1 January 2022 | |
| Bouygues | 576,638 | 323,867 | 266,156 |
| BP P.L.C. | 0 | 0 | 276,076 |
| CISCO SYSTEMS, INC. | 499,028 | 487,522 | 610,273 |
| DANONE | 512,981 | 430,369 | 477,226 |
| Deutsche Telekom AG | 1,050,525 | 900,215 | 787,290 |
| Enbridge Inc. | 0 | 0 | 249,080 |
| ENGIE | 0 | 0 | 639,378 |
| ESSILORLUXOTTICA | 668,288 | 622,656 | 689,043 |
| Fortum Oyj | 381,430 | 453,861 | 788,270 |
| Fresenius SE & Co. KGaA | 374,229 | 349,965 | 471,953 |
| GALP ENERGIA, SGPS, S.A. | 649,485 | 613,943 | 414,813 |
| GlaxoSmithKline PLC | 344,824 | 334,937 | 494,461 |
| Haleon PLC | 95,605 | 95,338 | 0 |
| Iberdrola SA | 430,311 | 396,234 | 377,383 |
| INTERNATIONAL BUSINESS MACHINES CORPORATION | 0 | 0 | 458,388 |
| Johnson & Johnson | 417,170 | 487,088 | 443,901 |
| KELLANOVA | 508,756 | 671,590 | 571,504 |
| WK Kellogg Co | 29,883 | 0 | 0 |
| Koninklijke Ahold Delhaize N.V. | 774,024 | 798,571 | 896,607 |
| KRKA, tovarna zdravil, d.d., Novo mesto | 759,880 | 635,536 | 815,144 |
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| LEGAL & GENERAL GROUP PLC | 394,846 | 384,421 | 484,390 |
| LVMH MOET HENNESSY LOUIS VUITTON | 0 | 0 | 738,632 |
| Naturgy Energy Group SA | 870,804 | 784,046 | 923,375 |
| Neste Oyj | 0 | 0 | 294,978 |
| OMV Aktiengesellschaft | 276,004 | 333,814 | 346,653 |
| Österreichische Post AG | 709,067 | 637,510 | 819,655 |
| PFIZER INC. | 303,246 | 559,143 | 911,904 |
| PPL Corp | 0 | 0 | 523,835 |
| RECKITT BENCKISER GROUP PLC | 364,223 | 378,873 | 441,288 |
| RECORDATI INDUSTRIA CHIMICA E FARMACEUTICA S.P.A. IN BREVE RECORDATI S.P.A. | 460,711 | 365,606 | 533,078 |
| Siemens Aktiengesellschaft | 608,823 | 464,500 | 547,052 |
| TELENOR ASA | 316,580 | 265,892 | 424,253 |
| TELIA COMPANY AB | 226,088 | 233,717 | 336,983 |
| Veolia Environement, Paris | 706,146 | 593,400 | 797,629 |
| WW Grainger Inc | 894,685 | 622,170 | 545,492 |
| Zurich Insurance Group AG | 786,153 | 743,829 | 639,836 |
| Total | 15,969,890 | 14,927,677 | 21,374,809 |
Due to the spin-off process of the company Kellanova (formerly Kellogg Company), the Group recorded an investment in WK Kellogg Co in 2023. This transaction did not result in any additional cost to the Group. In 2023, the Group did not dispose of any equity instruments measured at FVOCI.
Due to the spin-off process of the company GlaxoSmithKline PLC, the Group recorded an investment in Haleon PLC in 2022. This transaction did not result in any additional cost to the Company. In 2022, the Group disposed of equity instruments with a total fair value of EUR 5,011,460 and realised a net gain on disposal of EUR 988,811 EUR. The gain was transferred from accumulated other comprehensive income to retained earnings. The disposals were made to mitigate the increased risk in the financial markets due to the start of the war in Ukraine.
| 2023 | 2022 | |
|---|---|---|
| Dividends from equity investments held at FVOCI recognised in the income statement item other income | 556,769 | 558,722 |
| – Related to investments derecognised during the reporting period | 0 | 55,272 |
| – Related to investments held at the end of the reporting period | 556,769 | 503,450 |
| Movement in financial investments | 318 |
| EUR | FVOCI | AC | FVTPL | Total |
|---|---|---|---|---|
| Opening balance as at 1 January 2023 | 1,155,401,907 | 64,428,280 | 556,301,888 | 1,776,132,075 |
| New acquisitions | 330,815,055 | 29,287,786 | 114,620,739 | 474,723,581 |
| Maturity | -233,057,388 | -17,167,481 | -2,750,000 | -252,974,869 |
| Interest inflows | -17,089,575 | -2,196,521 | -817,975 | -20,104,070 |
| Disposal | -26,257,105 | -345,705 | -66,132,897 | -92,735,707 |
| Change in fair value – in equity | 52,182,266 | 0 | 0 | 52,182,266 |
| Change in fair value – in equity (ECL) | -397,551 | 0 | 0 | -397,551 |
| Change in fair value – from equity to IS – disposals | -821,328 | 0 | 0 | -821,328 |
| Change in fair value through profit or loss | 87,110 | 0 | 58,343,186 | 58,430,296 |
| Change in amortised cost, exchange differences | 14,910,432 | 2,362,126 | 518,389 | 17,790,948 |
| Change in ECL through profit or loss | 397,053 | -53,287 | 0 | 343,766 |
| Exchange differences (opening balance) | -23,831 | -12,032 | -908 | -36,772 |
| Opening balance as at 31 December 2023 | 1,276,147,045 | 76,303,166 | 660,082,422 | 2,012,532,633 |
| EUR | FVOCI | AC | FVTPL | Total |
|---|---|---|---|---|
| Opening balance as at 1 January 2022 | 1,322,371,668 | 62,376,074 | 602,276,651 | 1,987,024,393 |
| New acquisitions | 234,283,388 |
| Transfer between asset classes | -6,431,384 | 5,831,331 | 0 | -600,053 | |
|---|---|---|---|---|---|
| Maturity | -182,917,666 | -25,197,518 | -1,221,985 | -209,337,169 | |
| Interest inflows | -17,981,541 | -1,885,445 | -1,047,308 | -20,914,294 | |
| Disposal | -49,043,768 | -3,954 | -80,976,599 | -130,024,321 | |
| Change in fair value – in equity | -160,709,425 | 0 | 0 | -160,709,425 | |
| Change in fair value – in equity (ECL) | -374,458 | 0 | 0 | -374,458 | |
| Change in fair value – from equity to IS – disposals | 556,947 | 0 | 85 | 557,032 | |
| Change in fair value through profit or loss | 0 | 0 | -72,045,780 | -72,045,780 | |
| Change in amortised cost, exchange differences | 15,246,024 | -661,426 | 333,268 | 14,917,865 | |
| Change in ECL through profit or loss | 382,386 | -47,784 | 0 | 334,602 | |
| Exchange differences (opening balance) | 19,736 | -4,163 | -1,748 | 13,825 | |
| Opening balance as at 31 December 2022 | 1,155,401,907 | 64,428,280 | 556,301,888 | 1,776,132,075 | |
| Sava Re | EUR | FVOCI | AC | FVTPL | Total |
| Opening balance as at 1 January 2023 | 280,840,335 | 3,871,964 | 39,718,676 | 324,430,976 | |
| New acquisitions | 116,005,237 | 2,300,000 | 2,567,159 | 120,872,396 | |
| Maturity | -74,806,557 | -409,349 | -1,250,000 | -76,465,906 | |
| Interest inflows | -3,528,659 |
| -211,984 | -275,258 | -4,015,901 |
|---|---|---|
| -18,046,171 | 0 | -4,519,826 |
| -22,565,997 | Change in fair value – in equity | 10,013,555 |
| 0 | 0 | 10,013,555 |
| Change in fair value – in equity (ECL) | -60,746 | 0 |
| 0 | -60,746 | Change in fair value – from equity to IS – disposals |
| -120,448 | 0 | 0 |
| -120,448 | Change in fair value through profit or loss | 0 |
| 0 | 1,211,782 | 1,211,782 |
| Change in amortised cost, exchange differences | 928,825 | 266,968 |
| -165,733 | 1,030,060 | Change in ECL through profit or loss |
| 60,250 | -5,824 | 0 |
| 54,426 | Opening balance as at 31 December 2023 | 311,285,620 |
| 5,811,776 | 37,286,800 | 354,384,196 |
| 319 | Sava Re | EUR |
| FVOCI | AC | FVTPL |
| Total | Opening balance as at 1 January 2022 | 271,786,710 |
| 5,323,531 | 42,514,795 | 319,625,037 |
| New acquisitions | 99,226,328 | 1,000,000 |
| 3,659,075 | 103,885,404 | Maturity |
| -44,745,137 | -2,459,349 | 0 |
| -47,204,486 | Interest inflows | -3,128,881 |
| -266,495 | -293,134 | -3,688,510 |
| Disposal | -21,265,449 | 0 |
| -3,606,403 | -24,871,852 | Change in fair value – in equity |
| -25,260,034 | 0 | 0 |
| -25,260,034 | Change in fair value – in equity (ECL) | 608 |
| 0 | 0 | 608 |
| Change in fair value – from equity to IS – disposals |
| 197,687 | 0 | 0 | 197,687 | |
|---|---|---|---|---|
| Change in fair value through profit or loss | 0 | 0 | -3,103,084 | -3,103,084 |
| Change in amortised cost, exchange differences | 4,029,276 | 252,442 | 547,427 | 4,829,145 |
| Change in ECL through profit or loss | -774 | 21,835 | 0 | 21,061 |
| Opening balance as at 31 December 2022 | 280,840,335 | 3,871,964 | 39,718,676 | 324,430,976 |
| EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Sava Osiguruvanje, Skopje (MKD) | 1,311,052 | 0 |
| Sava Pokojninska (SVN) | 1,030,575 | 1,030,575 |
| Total | 2,341,627 | 1,030,575 |
The Group companies have pledged securities of EUR 0.6 million (31 December 2022: EUR 0.7 million).
The fair values of financial investments are shown in note 16.8.34.
Investment contract assets and liabilities relate to the management of pension funds at the subsidiary Sava Pokojninska. The Group held EUR 180.6 million (2022: 166.4 million) of investment contract assets and EUR 180.4 million (2022: EUR 166.2 million) of investment contract liabilities. Its investment contracts include a group of lifecycle funds called MOJI Skladi Življenjskega Cikla (MY lifecycle funds), which relate to the supplementary pension business of the Sava Pokojninska in the accumulation phase. The risks associated with investment contract liabilities are discussed in detail in section 16.4.14 “Financial investments”.
| Sava Insurance Group | EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|---|
| Financial investments | 173,199,975 | 149,105,965 | |
| Investment property | 593,000 | 593,000 | |
| Receivables | 38,152 | 1,863,355 | |
| Cash and cash equivalents | 6,797,572 | 14,815,315 | |
| Internal relation | -561 | -3,516 | |
| Total | 180,628,137 | 166,374,119 |
| EUR | Measured at amortised cost | Measured at fair value through profit or loss | Total | 31 December 2023 |
|---|---|---|---|---|
| Debt instruments | 94,321,242 | 37,710,007 | 132,031,249 | |
| Government bonds | 50,169,820 | 18,376,896 | 68,546,716 | |
| Corporate bonds | 44,151,422 | 19,333,110 |
| Measured at amortised cost | Measured at fair value through profit or loss | Total | |
|---|---|---|---|
| 31 December 2022 | |||
| Debt instruments | 83,197,007 | 33,412,414 | 116,609,421 |
| Government bonds | 41,027,854 | 6,561,439 | 47,589,293 |
| Corporate bonds | 42,169,153 | 26,850,976 | 69,020,129 |
| Equity instruments | 0 | 26,634,985 | 26,634,985 |
| Investments in infrastructure funds | 0 | 1,992,155 | 1,992,155 |
| Investments in real-estate funds | 0 | 3,869,404 | 3,869,404 |
| Total financial investments | 83,197,007 | 65,908,958 | 149,105,965 |
| Cash, cash equivalents and receivables | 14,815,315 | 0 | 14,815,315 |
| Investment property | 0 | 593,000 | 593,000 |
| Receivables | 1,859,839 | 0 | 1,859,839 |
| Total investment contract assets | 99,872,161 | 66,501,958 | 166,374,119 |
| EUR | Carrying amount | Fair value | Difference between FV and CA | |||
|---|---|---|---|---|---|---|
| 31 December 2023 | Level 1 | Level 2 | Level 3 | Total fair value | ||
| Investment contract assets measured at fair value | 79,471,733 | 70,072,510 | 3,611,446 | 5,787,777 | 79,471,733 | 0 |
| At FVTPL | 79,471,733 | 70,072,510 | 3,611,446 | 5,787,777 | 79,471,733 | 0 |
| Mandatorily measured at fair value through profit or loss, not held for trading | 79,471,733 | 70,072,510 | 3,611,446 | 5,787,777 | 79,471,733 | 0 |
| Debt instruments | 37,710,007 | 34,098,561 | 3,611,446 | 0 | 37,710,007 | 0 |
| Equity instruments | 35,973,949 | 35,973,949 | 0 | 0 | 35,973,949 | 0 |
| Investments in infrastructure funds | 1,914,064 | 0 | 0 | 1,914,064 | 1,914,064 | 0 |
| Investments in real-estate funds | 3,280,713 | 0 | 0 | 3,280,713 | 3,280,713 | 0 |
| Investment property | 593,000 | 0 | 0 | 593,000 | 593,000 | 0 |
| Investment contract assets not measured at fair value | 101,156,405 | 86,463,519 | 6,049,579 | 6,835,162 | 99,348,260 | -1,808,144 |
| Investments measured at amortised cost | 101,156,405 | 86,463,519 | 6,049,579 | 6,835,162 | 99,348,260 | -1,808,144 |
| Debt instruments | 94,321,242 | 86,463,519 | 6,049,579 | 0 | 92,513,098 | -1,808,144 |
| Cash and cash equivalents |
| Carrying amount | Fair value | Difference between FV and CA | ||||
|---|---|---|---|---|---|---|
| 31 December 2022 | Level 1 | Level 2 | Level 3 | Total fair value | ||
| Investment contract assets measured at fair value | 66,501,958 | 55,824,819 | 4,222,580 | 6,454,559 | 66,501,958 | 0 |
| FVTPL | 66,501,958 | 55,824,819 | 4,222,580 | 6,454,559 | 66,501,958 | 0 |
| Mandatorily measured at fair value through profit or loss, not held for trading | 66,501,958 | 55,824,819 | 4,222,580 | 6,454,559 | 66,501,958 | 0 |
| Debt instruments | 33,412,414 | 29,189,834 | 4,222,580 | 0 | 33,412,414 | 0 |
| Equity instruments | 26,634,985 | 26,634,985 | 0 | 0 | 26,634,985 | 0 |
| Investments in infrastructure funds | 1,992,155 | 0 | 0 | 1,992,155 | 1,992,155 | 0 |
| Investments in real-estate funds | 3,869,404 | 0 | 0 | 3,869,404 | 3,869,404 | 0 |
| Investment property | 593,000 | 0 | 0 | 593,000 | 593,000 | 0 |
| Investment contract assets not measured at fair value | 99,872,161 |
| Debt instruments | 83,197,007 | 72,269,907 | 4,047,226 | 0 | 76,317,133 | -6,879,874 |
|---|---|---|---|---|---|---|
| Cash and cash equivalents | 14,815,315 | 0 | 0 | 14,815,315 | 14,815,315 | 0 |
| Receivables | 1,859,839 | 0 | 0 | 1,859,839 | 1,859,839 | 0 |
| Total investment contract assets | 166,374,119 | 128,094,726 | 8,269,806 | 23,129,713 | 159,494,245 | -6,879,874 |
The fair value of investment property as at 31 December 2023 stood at EUR 593,000 (2022: EUR 593,000).
| 31 December 2023 | 31 December 2022 | |
|---|---|---|
| Net liabilities to pension policyholders | 179,443,359 | 165,831,325 |
| Other liabilities | 1,185,340 | 546,309 |
| TOTAL IN BALANCE SHEET – LONG-TERM BUSINESS FUNDS OF VOLUNTARY PENSION INSURANCE | 180,628,699 | 166,377,635 |
| Inter-company transactions between company and life insurance liability fund | -191,004 | -180,272 |
| TOTAL IN BALANCE SHEET | 180,437,695 | 166,197,363 |
| Debtinstruments | Equity instruments | Investments in infrastructure funds | Investments in real-estate funds | Total | |
|---|---|---|---|---|---|
| Balance as at 1 January 2023 | 116,609,421 | 26,634,985 | 1,992,155 | 3,869,404 | 149,105,965 |
| New acquisitions | 26,951,166 | 7,343,516 | 83,739 | 0 | 34,378,421 |
| Maturity | -12,250,000 | 0 | 0 | 0 | -12,250,000 |
| Disposal | -962,459 | -2,562,553 | -196,095 | 0 | -3,721,107 |
|---|---|---|---|---|---|
| Coupon payments | -2,615,309 | 0 | 0 | 0 | -2,615,309 |
| Accrued interest | 3,129,844 | 0 | 0 | 0 | 3,129,844 |
| Revaluation (through profit or loss) | 1,496,341 | 4,769,727 | 34,733 | -588,691 | 5,712,110 |
| Income/expenses upon sale | -299,503 | -5,801 | -468 | 0 | -305,772 |
| Recognition/reversal of ECL allowance | 17,205 | 0 | 0 | 0 | 17,205 |
| Exchange differences | -45,457 | -205,925 | 0 | 0 | -251,382 |
| Balance as at 31 December 2023 | 132,031,249 | 35,973,949 | 1,914,064 | 3,280,713 | 173,199,975 |
| EUR | Debtinstruments | Equity instruments | Investments in infrastructure funds | Investments in real-estate funds | Total |
|---|---|---|---|---|---|
| Balance as at 1 January 2022 | 117,099,239 | 25,571,612 | 666,260 | 2,699,832 | 142,670,851 |
| New acquisitions | 51,899,001 | 7,824,866 | 1,286,841 | 1,000,000 | 59,723,867 |
| Maturity | -9,731,947 | 0 | 0 | 0 | -9,731,947 |
| Disposal | -35,696,093 | -2,796,788 | 0 | 0 | -38,492,881 |
| Coupon payments | -2,522,534 | 0 | 0 | 0 | -2,522,534 |
| Accrued interest | 2,590,651 | 0 |
| EUR | Debt instruments | Investments in infrastructure funds | Investments in real-estate funds | Investment property |
|---|---|---|---|---|
| 31 December 2023 | 0 | 0 | 0 | 0 |
| 31 December 2022 | 795,498 | 1,992,155 | 666,260 | 3,869,404 |
| Opening balance | 0 | 795,498 | 1,992,155 | 666,260 |
| Additions | 0 | 4,502 | 83,739 | 1,344,536 |
| Disposals | 0 | 0 | -196,563 | 0 |
| Maturity | 0 | -800,000 | 0 | 0 |
| Revaluation to fair value | 0 | 0 | 0 | 0 |
Movement in investments, and income and expenses relating to investment contract assets measured at fair value – level 3
Balance as at 31 December 2022
116,609,421
26,634,985
1,992,155
3,869,404
149,105,965
323
Revaluation (through profit or loss)
-7,363,436
-4,253,434
39,054
169,571
-11,616,870
Income/expenses upon sale
106,591
-4,248
0
0
102,343
Recognition/reversal of ECL allowance
-17,924
0
0
0
-17,924
Exchange differences
245,873
292,977
0
0
| Reclassifications into levels | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
|---|---|---|---|---|---|---|---|---|
| Closing balance | 0 | 0 | 1,914,064 | 1,992,155 | 3,280,713 | 3,869,404 | 593,000 | 593,000 |
| Income | 0 | 0 | 126,668 | 103,335 | 73,749 | 227,809 | 227,809 | 0 |
| Expenses | 0 | 0 | -468 | -6,587 | -588,691 | 0 | 0 | 0 |
The pension company eliminates inter-company transactions of the joint balance sheet; therefore, liabilities to pension policyholders exceed investment contract liabilities. Internal transactions between the group of My-Life-cycle long-term business funds and the pension company were eliminated in the balance sheet. These include entry charges and management fees for the current month, which may be recognised upon conversion or when credited to personal accounts.
Liabilities in the balance sheet of the long-term liability fund of the voluntary supplementary pension insurance are mostly long-term. These are liabilities relating to the voluntary supplementary pension life liability fund for premiums paid, guaranteed return and the return in excess of guaranteed return (provisions).
| Net investment income for the financial period (EUR) | Investment contracts |
|---|---|
| Finance income | 9,405,019 |
| Dividend income | 357,517 |
| Interest income | 3,138,400 |
| Gains on disposal of financial investments | 4,062 |
| Gains on change in fair value | 5,729,316 |
| Other finance income | 175,722 |
| Income from investment property | 58,981 |
| Rental income | 58,981 |
| Gains on change in fair value | 0 |
| Financial expenses | -521,234 |
| Losses on disposals | -309,833 |
| Losses from fair value changes | 0 |
| Other finance expenses | -211,401 |
| Expenses relating to investment property | -6,633 |
| Expenses arising from management and renting | -6,633 |
| Expenses relating to management of life insurance business fund | -1,890,768 |
| Asset management commission | -1,718,330 |
| Expenses relating to custodian bank | -29,212 |
| Audit-related expenses |
| EUR | NON-LIFE | LIFE | TOTAL | NON-LIFE | LIFE | TOTAL |
|---|---|---|---|---|---|---|
| Insurance contract assets | -8,669,139 | -938,149 | -9,607,288 | -7,041,725 | -96,615 | -7,138,340 |
| Reinsurance contract assets | -107,239,429 | -242,131 | -107,481,560 | -67,933,085 | -200,557 | -68,133,642 |
| Insurance contract liabilities | 691,376,675 | 959,645,572 | 1,651,022,247 | 630,152,889 | 854,162,269 | 1,484,315,158 |
| Reinsurance contract liabilities | 1,484,470 | 157,573 | 1,642,043 | 896,359 | 155,255 | 1,051,614 |
| EUR | Insurance and reinsurance contract assets | Insurance and reinsurance contract liabilities | Net (re)insurance contract assets/liabilities |
|---|---|---|---|
| Insurance contracts not measured using the PAA | -8,180,369 | 172,238,904 | 164,058,535 |
| Insurance contracts measured using the PAA | -488,770 | 519,137,770 | 518,649,000 |
| Total insurance contracts | -8,669,139 | 691,376,674 | 682,707,535 |
| Reinsurance contracts not measured using the PAA | -101,443,611 | 542,115 | -100,901,496 |
| Reinsurance contracts measured using the PAA | -5,795,817 | 942,355 | -4,853,462 |
| Total reinsurance contracts | -107,239,428 | 1,484,470 | -105,754,958 |
| EUR | Insurance and reinsurance contract assets | Insurance and reinsurance contract liabilities | Net (re)insurance contract assets/liabilities | |
|---|---|---|---|---|
| Insurance contracts not measured using the PAA | -938,150 | 959,645,573 | 958,707,423 | |
| Total insurance contracts | -938,150 | 959,645,573 | 958,707,423 | |
| Reinsurance contracts not measured using the PAA | -242,131 | 157,573 | -84,558 | |
| Total reinsurance contracts | -242,131 | 157,573 | -84,558 |
| EUR | Insurance and reinsurance contract assets | Insurance and reinsurance contract liabilities | Net (re)insurance contract assets/liabilities | |
|---|---|---|---|---|
| Insurance contracts not measured using the PAA | -96,616 | 854,162,269 | 854,065,653 | |
| Total insurance contracts | -96,616 | 854,162,269 | 854,065,653 | |
| Reinsurance contracts not measured using the PAA | -200,558 | 155,256 | -45,302 | |
| Total reinsurance contracts | -200,558 | 155,256 | -45,302 |
| EUR | Insurance and reinsurance contract assets | Insurance and reinsurance contract liabilities | Net (re)insurance contract assets/liabilities | |
|---|---|---|---|---|
| Insurance contracts not measured using the PAA | -5,081,479 | 256,344,343 | 251,262,865 | |
| Insurance contracts measured using the PAA | -13,866 | 39,408,380 | 39,394,514 | |
| Total insurance contracts | -5,095,344 | 295,752,723 | 290,657,379 |
| Insurance contract assets | -95,762,621 | ||
|---|---|---|---|
| Insurance contract liabilities | 446,848 | ||
| Net insurance contract assets/liabilities | -95,315,773 | ||
| Insurance contracts not measured using the PAA | -3,055,560 | 256,661,771 | 253,606,211 |
| Insurance contracts measured using the PAA | -16,071 | 15,752,280 | 15,736,209 |
| Total insurance contracts | -3,071,631 | 272,414,051 | 269,342,420 |
| Reinsurance contracts not measured using the PAA | -61,224,914 | 320,044 | -60,904,871 |
| Total reinsurance contracts | -61,224,914 | 320,044 | -60,904,871 |
| Liability for remaining coverage – LRC | -10,900,401 | ||
|---|---|---|---|
| Liability for incurred claims – LIC | 58,500 | ||
| Total | -10,841,901 | ||
| Total LRC | 3,916,518 | ||
| Insurance contracts not measured using the PAA | -116,342 | - | 3,800,176 |
| Liabilities | 84,621,519 | 8,103,257 | 92,724,776 |
| 202,662,508 | 295,095,593 | 39,670,013 | |
| 537,428,114 | 630,152,890 | ||
| Opening balance – net assets/liabilities | 73,721,118 | 8,161,757 | 81,882,875 |
| 206,579,026 | 294,979,251 | 39,670,013 | |
| 541,228,290 | 623,111,165 | ||
| Changes in the statement of profit or loss and other comprehensive income | 0 | ||
| Insurance contract revenue, of which | -630,737,528 | 0 | -630,737,528 |
| -630,737,528 | -1,245,399 | -1,245,399 | 0 | -1,245,399 | |||
|---|---|---|---|---|---|---|---|
| Other contracts | -629,492,129 | -629,492,129 | 0 | -629,492,129 |
| -7,831,867 | -7,831,867 | 107,915,043 | 471,354,715 | 15,504,532 | 594,774,290 | 586,942,423 | ||
|---|---|---|---|---|---|---|---|---|
| Changes related to past services (changes in fulfilment cash flows related to the liability for incurred claims) | 0 | -27,639,687 | -31,465,007 | -18,406,018 | -77,510,712 | -77,510,712 | ||
| Incurred claims | 0 | -7,831,867 | -7,831,867 | 80,275,356 | 439,889,708 | -2,901,486 | 517,263,578 | 509,431,711 |
| Amortisation of insurance acquisition cash flows | 91,307,797 | 91,307,797 | 0 | 91,307,797 | ||||
| Changes related to future services (recognition/reversal of losses on onerous groups of contracts) | 10,343,192 | 10,343,192 | 0 | 10,343,192 |
| 91,307,797 | 10,343,192 | 101,650,989 | 0 | 0 | 0 | 0 | 101,650,989 |
|---|---|---|---|---|---|---|---|
| 2,511,325 | 93,819,122 | 80,275,356 | 439,889,708 | -2,901,486 | 517,263,578 | 611,082,700 |
|---|---|---|---|---|---|---|
| Investment components excluded from insurance revenue and insurance service expenses | ||||||
| -3,397,537 | - | -3,397,537 | 3,397,536 | - | - | 3,397,536 |
| -1 | Insurance service result | |||||
| -542,827,268 | 2,511,325 | -540,315,943 | 83,672,892 | 439,889,708 | -2,901,486 | 520,661,114 |
| -19,654,829 | Net finance income or expenses from insurance contracts | -675,189 | 53,401 | -621,788 | 8,395,539 | 11,589,813 |
| 1,396,140 | 21,381,492 | 20,759,704 | Effect of movement in exchange rates | 2,877,834 | -29,765 | 2,848,069 |
| -9,454,413 | 15,842 | 1,804 | -9,436,767 | -6,588,698 | Foreign currency translation differences | 15,400 |
| -366 | 15,034 | 0 | -14,973 | -724 | -15,697 | -663 |
| Total changes in the statement of profit or loss and other comprehensive income | ||||||
| -540,609,223 | 2,534,595 | -538,074,628 | 82,614,018 | 451,480,390 | -1,504,266 | 532,590,142 |
| -5,484,486 | Cash flows | |||||
| Premiums received for insurance contracts issued | 654,120,672 | - | 654,120,672 | - | - | 0 |
| Claims incurred and insurance service expenses paid | - | - | 0 | -78,866,700 | -414,325,539 | -493,192,239 |
| -493,192,239 |
| Cash Flows | -95,817,422 |
|---|---|
| Total cash flows | 558,303,250 |
| 0 | |
| -78,866,700 | |
| -414,325,539 | |
| 0 | |
| -493,192,239 | |
| 65,111,011 | |
| Other movements | -30,151 |
| 0 |
| -14,482,936 | 46,591 | -14,436,345 | 5,219,756 | 482,366 | 65,084 | 5,767,206 | -8,669,139 |
|---|---|---|---|---|---|---|---|
| 105,867,928 | 10,649,761 | 116,517,689 | 205,106,588 | 331,651,736 | 38,100,663 | 574,858,987 | 691,376,676 |
|---|---|---|---|---|---|---|---|
| 91,384,992 | 10,696,352 | 102,081,344 | 210,326,344 | 332,134,102 | 38,165,747 | 580,626,193 | 682,707,537 |
|---|---|---|---|---|---|---|---|
| Liability for remaining coverage – LRC | Liability for incurred claims – LIC | Total | |||||
|---|---|---|---|---|---|---|---|
| Total LRC | Insurance contracts not measured using the PAA | Insurance contracts measured using the PAA | |||||
| Total LIC | Excluding loss component | Loss component | |||||
| Present value of future cash flows | Adjustment for non-financial risk | ||||||
| -12,776,466 | 768 | -12,775,698 | 5,483,709 | -149,681 | 4,425 | 5,338,453 | -7,437,245 |
| 87,289,500 | 5,976,536 | 93,266,036 | 206,083,233 | 299,910,996 | 38,091,765 | 544,085,994 | 637,352,030 |
|---|---|---|---|---|---|---|---|
| Insurance contract revenue, of which | -547,182,811 | 0 | -547,182,811 | 0 | 0 | 0 | 0 | -547,182,811 | |
|---|---|---|---|---|---|---|---|---|---|
| Contracts under the fair value approach | -619,266 | - | -619,266 | - | - | - | 0 | -619,266 | |
| Other contracts | -546,563,545 | - | -546,563,545 | - | - | - | 0 | -546,563,545 | |
| Insurance service expenses | Incurred claims (excluding investment components) and other incurred insurance service expenses | - | -8,721,999 | -8,721,999 | 100,097,568 | 367,061,696 | 16,220,258 | 483,379,522 | 474,657,523 |
| Changes related to past services (changes in fulfilment cash flows related to the liability for incurred claims) | - | - | 0 | -33,202,936 | -24,193,704 | -12,269,399 | -69,666,039 | -69,666,039 | |
| Incurred claims | 0 | -8,721,999 | -8,721,999 | 66,894,632 | 342,867,992 | 3,950,859 | 413,713,483 | 404,991,484 | |
| Amortisation of insurance acquisition cash flows | 80,011,463 | - | 80,011,463 | - | - | - | 0 |
| Changes related to future services (recognition/reversal of losses on onerous groups of contracts) | - | 10,844,930 | 10,844,930 | - | - | - | 0 | 10,844,930 |
|---|---|---|---|---|---|---|---|---|
| Insurance service operating expenses | 80,011,463 | 10,844,930 | 90,856,393 | 0 | 0 | 0 | 0 | 90,856,393 |
| Total insurance service expenses | 80,011,463 | 2,122,931 | 82,134,394 | 66,894,632 | 342,867,992 | 3,950,859 | 413,713,483 | 495,847,877 |
| Investment components excluded from insurance revenue and insurance service expenses | -4,194,280 | - | -4,194,280 | 4,194,281 | - | - | 4,194,281 | 1 |
| Insurance service result | -471,365,628 | 2,122,931 | -469,242,697 | 71,088,913 | 342,867,992 | 3,950,859 | 417,907,764 | -51,334,933 |
| Net finance income or expenses from insurance contracts | 815,237 | 36,994 | 852,231 | -3,146,293 | -21,721,978 | -2,388,334 | -27,256,605 | -26,404,374 |
| Effect of movement in exchange rates | 9,231 | 24,362 | 33,593 | -388,206 | 97,318 | 10,772 | -280,116 | -246,523 |
| Foreign currency translation differences | -27,476 | 166 | -27,310 | -1 | 3,406 | 526 | 3,931 | -23,379 |
| Total changes in the statement of profit or loss and other comprehensive income | -470,568,636 | 2,184,453 | -468,384,183 | 67,554,413 | 321,246,738 | 1,573,823 | 390,374,974 | -78,009,209 |
| Cash flows | 0 | 0 | 0 | - | - | - | - | - |
| Premiums received for insurance contracts issued | 552,130,710 | - | 552,130,710 | - | - | 0 | 552,130,710 | |
|---|---|---|---|---|---|---|---|---|
| Claims incurred and insurance service expenses paid | - | - | 0 | -72,542,329 | -326,028,802 | - | -398,571,131 | -398,571,131 |
| Insurance acquisition cash flows | -82,386,780 | - | -82,386,780 | - | - | 0 | -82,386,780 | |
| Total cash flows | 469,743,930 | 0 | 469,743,930 | -72,542,329 | -326,028,802 | 0 | -398,571,131 | 71,172,799 |
| Other movements | 32,792 | - | 32,792 | - | - | - | 0 | 32,792 |
| Assets | -10,900,401 | 58,500 | -10,841,901 | 3,916,518 | -116,342 | - | 3,800,176 | -7,041,725 |
| Liabilities | 84,621,519 | 8,103,257 | 92,724,776 | 202,662,508 | 295,095,593 | 39,670,013 | 537,428,114 | 630,152,890 |
| Closing balance – net assets/liabilities | 73,721,118 | 8,161,757 | 81,882,875 | 206,579,026 | 294,979,251 | 39,670,013 | 541,228,290 | 623,111,165 |
| -324,596 | 17,079 | -307,517 | 210,902 | 210,902 | -96,615 |
|---|---|---|---|---|---|
| 826,454,221 | 4,298,640 | 830,752,861 | 23,409,407 | 23,409,407 | 854,162,268 |
|---|---|---|---|---|---|
| 826,129,625 | 4,315,719 | 830,445,344 | 23,620,309 | 23,620,309 | 854,065,653 |
|---|---|---|---|---|---|
| -66,825,275 | 0 | -66,825,275 | 0 | 0 | -66,825,275 |
|---|---|---|---|---|---|
| -32,967,889 | - | -32,967,889 | - | 0 | -32,967,889 |
|---|---|---|---|---|---|
| -11,028,948 | - | -11,028,948 | - | 0 | -11,028,948 |
|---|---|---|---|---|---|
| -22,828,438 | - | -22,828,438 | - | 0 | -22,828,438 |
|---|---|---|---|---|---|
| - | -398,513 | -398,513 | 38,509,225 | 38,509,225 | 38,110,712 |
|---|---|---|---|---|---|
| - | - | 0 | -1,599,207 | -1,599,207 | -1,599,207 |
|---|---|---|---|---|---|
| 0 | -398,513 | -398,513 | 36,910,018 | 36,910,018 | 36,511,505 |
|---|---|---|---|---|---|
| 9,557,778 | - | 9,557,778 |
|---|---|---|
| Changes related to future services (recognition/reversal of losses on onerous groups of contracts) | -26,471 | -26,471 | |
|---|---|---|---|
| Insurance service operating expenses | 9,557,778 | -26,471 | 9,531,307 |
| Total insurance service expenses | 9,557,778 | -424,984 | 9,132,794 |
| Investment components excluded from insurance revenue and insurance service expenses | -110,271,436 | -110,271,436 | |
| Insurance service result | -167,538,933 | -424,984 | -167,963,917 |
| Net finance income or expenses from insurance contracts | 80,593,806 | 23,844 | 80,617,650 |
| Effect of movement in exchange rates | -6,965 | -804 | -7,769 |
| Foreign currency translation differences | 908 | -329 | 579 |
| Total changes in the statement of profit or loss and other comprehensive income | -86,951,184 | -402,273 | -87,353,457 |
| Premiums received for insurance contracts issued | 194,809,673 |
|---|---|
| Claims incurred and insurance service expenses paid | -133,937,909 |
| Insurance acquisition cash flows |
| EUR | Liability for remaining coverage – LRC | Liability for incurred claims – LIC | Total |
|---|---|---|---|
| Total LRC | Insurance contracts not measured using the PAA | Total LIC | Excluding loss component |
| Loss component | Assets | -13,293,626 | 24,000 |
| -13,269,626 | 6,327,810 | 6,327,810 | -6,941,816 |
| Liabilities | 963,671,184 | 2,232,364 | 965,903,548 |
| 17,847,246 | 17,847,246 | 983,750,794 | Opening balance – net assets/liabilities |
| 950,377,558 | 2,256,364 | 952,633,922 | 24,175,056 |
| 24,175,056 | 976,808,978 | Changes in the statement of profit or loss and other comprehensive income | Insurance contract revenue, of which |
| -61,804,984 | 0 | -61,804,984 | 0 |
| 0 | -61,804,984 |
| -16,332,938 | -16,332,938 | 0 | |
|---|---|---|---|
| -16,332,938 | Total cash flows | 178,476,735 | 0 |
| 178,476,735 | -133,937,909 | -133,937,909 | 44,538,826 |
| Other movements | 11,541,230 | - | 11,541,230 |
| -11,550,035 | -11,550,035 | -8,805 | Assets |
| -8,827,605 | 49,229 | -8,778,376 | 7,840,226 |
| 7,840,226 | -938,150 | Liabilities | 938,024,007 |
| 3,864,217 | 941,888,224 | 17,757,347 | 17,757,347 |
| 959,645,571 | Closing balance – net assets/liabilities | 929,196,402 | 3,913,446 |
| 933,109,848 | 25,597,573 | 25,597,573 | 958,707,421 |
| -36,876,538 | -36,876,538 | 0 | -36,876,538 | ||
|---|---|---|---|---|---|
| -1,627,658 | -1,627,658 | 0 | -1,627,658 | ||
|---|---|---|---|---|---|
| -23,300,788 | -23,300,788 | 0 | -23,300,788 | ||
|---|---|---|---|---|---|
| -752,184 | -752,184 | 34,504,072 | 34,504,072 | 33,751,888 | |
|---|---|---|---|---|---|
| 0 | -3,623,010 | -3,623,010 | -3,623,010 | ||
|---|---|---|---|---|---|
| 0 | -752,184 | -752,184 | 30,881,062 | 30,881,062 | 30,128,878 |
|---|---|---|---|---|---|
| 8,734,800 | 8,734,800 | 0 | 8,734,800 | ||
|---|---|---|---|---|---|
| 2,798,995 | 2,798,995 | 0 | 2,798,995 | ||
|---|---|---|---|---|---|
| 8,734,800 | 2,798,995 | 11,533,795 | 0 | 0 | 11,533,795 |
|---|---|---|---|---|---|
| 8,734,800 | 2,046,811 | 10,781,611 | 30,881,062 | 30,881,062 | 41,662,673 |
|---|---|---|---|---|---|
| -116,760,299 | -116,760,299 | 116,760,294 | 116,760,294 | -5 | |
|---|---|---|---|---|---|
| -169,830,483 | 2,046,811 | -167,783,672 |
|---|---|---|
| Net finance income or expenses from insurance contracts | -132,335,244 |
|---|---|
| Effect of movement in exchange rates | 10,001 |
| Foreign currency translation differences | -822,472 |
| Total changes in the statement of profit or loss and other comprehensive income | -302,978,198 |
| Premiums received for insurance contracts issued | 180,750,118 |
|---|---|
| Claims incurred and insurance service expenses paid | -135,175,500 |
| Insurance acquisition cash flows | -14,842,731 |
| Total cash flows | 165,907,387 |
| Assets | -324,596 |
|---|---|
| Liabilities | 826,454,221 |
| Closing balance – net assets/liabilities | 854,162,268 |
| Liability for remaining coverage – LRC | Liability for incurred claims – LIC | Total |
|---|---|---|
| 826,129,625 | 4,315,719 | 830,445,344 |
| Total LRC | 23,620,309 | 23,620,309 |
| Insurance contracts not measured using the PAA | 854,065,653 | 330 |
| Insurance contracts measured using the PAA | 3,729,932 | 0 |
| Total LIC | 3,729,932 | -3,071,631 |
| Excluding loss component | -6,804,219 | 2,656 |
| Loss component | -6,801,563 | 0 |
| Present value of future cash flows | 278,014,090 | 15,324,400 |
| Adjustment for non-financial risk | 1,487,107 | 294,825,597 |
| Assets | -22,943,613 | 532,067 |
| Liabilities | -22,411,546 | 281,744,022 |
| Opening balance – net assets/liabilities | -29,747,832 | 534,724 |
| -29,213,108 | 281,744,022 | 15,324,400 |
| Changes in the statement of profit or loss and other comprehensive income | 0 | Insurance contract revenue, of which |
| -167,804,126 | 0 | -167,804,126 |
| Contracts under the modified retrospective approach | -426,267 | -426,267 |
| Contracts under the fair value approach | -344,090 | -344,090 |
| Other contracts | -344,090 |
|---|---|
| Total | -167,033,770 |
| Insurance service expenses | 0 |
| Incurred claims (excluding investment components) and other incurred insurance service expenses | 47,480,784 |
| Changes related to past services (changes in fulfilment cash flows related to the liability for incurred claims) | -29,353,101 |
| Incurred claims | -8,129,082 |
| Amortisation of insurance acquisition cash flows | 9,071,629 |
| Changes related to future services (recognition/reversal of losses on onerous groups of contracts) | 7,883,873 |
| Insurance service operating expenses | 16,955,503 |
| Total insurance service expenses | 174,490,918 |
| Investment components excluded from insurance revenue and insurance service expenses | -6,427,138 |
| - | 6,427,138 | 6,418,482 | 8,656 | - | |||||
|---|---|---|---|---|---|---|---|---|---|
| 6,427,138 | -2 | Insurance service result | -165,159,635 | -245,208 | -165,404,843 | ||||
| 123,261,028 | 47,489,440 | 1,341,166 | 172,091,634 | 6,686,791 | |||||
| Net finance income or expenses from insurance contracts | 254,982 | 48,770 | 303,752 | 11,068,670 | 766,380 | 63,538 | 11,898,588 | 12,202,340 | |
| Effect of movement in exchange rates | 2,877,226 | -29,503 | 2,847,723 | -9,540,392 | 8,053 | 1,985 | -9,530,353 | -6,682,630 | |
| Total changes in the statement of profit or loss and other comprehensive income | -162,027,427 | -225,941 | -162,253,368 | 124,789,306 | 48,263,874 | 1,406,689 | 174,459,869 | 12,206,501 |
| 0 | 0 | 0 | Premiums received for insurance contracts issued | 162,887,532 | - | 162,887,532 | - | - | - | 0 | 162,887,532 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Claims incurred and insurance service expenses paid | - | - | 0 | -120,063,682 | -25,507,274 | - | -145,570,956 | -145,570,956 | |||
| Insurance acquisition cash flows | -8,208,119 | - | -8,208,119 | - | - | - | 0 | -8,208,119 | |||
| Total cash flows | 154,679,414 | 0 | 154,679,414 | -120,063,682 | -25,507,274 | 0 | -145,570,956 | 9,108,458 |
| -9,456,970 | 17,249 | -9,439,721 | 4,344,377 | - | - | 4,344,377 | -5,095,344 |
|---|---|---|---|---|---|---|---|
| -27,638,875 | 291,534 | -27,347,342 | 282,125,269 | 38,081,000 | 2,893,796 | 323,100,065 | 295,752,723 |
|---|---|---|---|---|---|---|---|
| -37,095,845 | 308,783 | -36,787,063 | 286,469,646 | 38,081,000 | 2,893,796 | 327,444,442 | 290,657,379 |
|---|---|---|---|---|---|---|---|
| -8,294,473 | 768 | -8,293,705 | 5,191,907 | 35,986 | 2,375 | 5,230,268 | -3,063,438 |
|---|---|---|---|---|---|---|---|
| -16,334,711 | 794,881 | -15,539,830 | 290,779,555 | 14,794,305 | 1,412,877 | 306,986,737 | 291,446,906 |
|---|---|---|---|---|---|---|---|
| -24,629,184 | 795,649 | -23,833,536 | 295,971,462 | 14,830,291 | 1,415,252 | 312,217,005 | 288,383,469 |
|---|---|---|---|---|---|---|---|
| 0 | Insurance contract revenue, of which |
|---|---|
| -150,760,734 | 0 | -150,760,734 | 0 |
|---|---|---|---|
| -15,031,862 | - | -15,031,862 | 0 |
|---|---|---|---|
| -591,401 | - | -591,401 | 0 |
|---|---|---|---|
| -135,137,471 | - | -135,137,471 | 0 |
|---|---|---|---|
| 0 | 6,053,136 | Incurred claims (excluding investment components) and other incurred insurance service expenses | -8,898,334 |
| -8,898,334 | 147,003,163 | 5,044,928 | 279,542 |
| 152,327,633 | 143,429,299 | Changes related to past services (changes in fulfilment cash flows related to the liability for incurred claims) | - |
| - | 0 | -27,761,777 | 1,008,208 |
| -35,097 | -26,788,666 | -26,788,666 | Incurred claims |
| 0 | -8,898,334 | -8,898,334 | 119,241,387 |
| 6,053,136 | 244,445 | 125,538,968 | 116,640,633 |
| Amortisation of insurance acquisition cash flows | 7,302,382 | - | 7,302,382 |
| - | - | 0 | 7,302,382 |
| Changes related to future services (recognition/reversal of losses on onerous groups of contracts) | - | 8,580,314 | 8,580,314 |
| - | - | 0 | - |
| 8,580,314 | Insurance service operating expenses | |||
|---|---|---|---|---|
| 7,302,382 | 8,580,314 | 15,882,696 | ||
| 0 | 0 | 0 | ||
| 0 | 15,882,696 | |||
| Total insurance service expenses | 7,302,382 | |||
| -318,020 | 6,984,361 | |||
| 119,241,387 | 6,053,136 | 244,445 | 125,538,968 | 132,523,329 |
| Investment components excluded from insurance revenue and insurance service expenses | -7,229,643 | - | -7,229,643 | |
| 7,140,735 | 88,908 | - | 7,229,643 | |
| -2 | Insurance service result | |||
| -150,687,996 | -318,020 | -151,006,016 | ||
| 126,382,122 | 6,142,045 | 244,445 | 132,768,611 | |
| -18,237,405 | Net finance income or expenses from insurance contracts | |||
| -501,340 | 35,304 | -466,036 | ||
| -8,905,207 | -2,190,959 | -168,439 | -11,264,605 | -11,730,640 |
| Effect of movement in exchange rates | ||||
| 11,170 | 21,791 | 32,961 | ||
| -8,684 | -17,508 | -4,150 | -30,342 | 2,619 |
| Total changes in the statement of profit or loss and other comprehensive income | ||||
| -151,178,166 | -260,925 | -151,439,091 | ||
| 117,468,231 | 3,933,578 | 71,855 | 121,473,664 | -29,965,427 |
| Cash flows | ||||
| 0 | 0 | 0 | ||
| Premiums received for insurance contracts issued | 153,163,416 | - | 153,163,416 | |
| - | - | 0 | ||
| Claims incurred and insurance service expenses paid | ||||
| - | -131,695,671 | -3,439,469 |
| -7,103,897 | ||||
|---|---|---|---|---|
| 0 | -7,103,897 | |||
| Total cash flows | 146,059,518 | 0 | 146,059,518 | |
| -131,695,671 | -3,439,469 | 0 | -135,135,140 | 10,924,378 |
| -6,804,219 | 2,656 | -6,801,563 | 3,729,932 | 0 | 0 | 3,729,932 | -3,071,631 |
|---|---|---|---|---|---|---|---|
| -22,943,613 | 532,067 | -22,411,546 | 278,014,090 | 15,324,400 | 1,487,107 | 294,825,597 | 272,414,051 |
|---|---|---|---|---|---|---|---|
| -29,747,832 | 534,724 | -29,213,108 | 281,744,022 | 15,324,400 | 1,487,107 | 298,555,528 | 269,342,420 |
|---|---|---|---|---|---|---|---|
| Assets for remaining coverage – ARC | Assets for incurred claims – AIC | Total |
|---|---|---|
| Total ARC | Reinsurance contracts not measured using the PAA | Reinsurance contracts measured using the PAA |
| Total AIC | Excluding loss component | Loss component |
| Present value of future cash flows | Adjustment for non-financial risk | Assets |
| -981,794 | -67,934 | -1,049,728 |
| -63,755,094 | -2,782,668 | -345,594 |
| -66,883,356 | -67,933,084 |
| 2,280,268 | -10,105 | 2,270,163 | ||
|---|---|---|---|---|
| -245,023 | -1,121,196 | -7,585 | -1,373,804 | 896,359 |
| 1,298,474 | -78,039 | 1,220,435 |
|---|---|---|
| -64,000,117 | -3,903,864 |
| Allocation of reinsurers’ shares of premiums | Amounts recoverable from insurance contracts ceded to reinsurers | 42,824,596 | 0 | 42,824,596 | 0 | 0 | 0 | 42,824,596 |
|---|---|---|---|---|---|---|---|---|
| Reinsurers’ shares of insurance service expenses | Reinsurers’ share of incurred claims | - | - | 0 | -82,239,382 | -7,141,789 | -113,410 | -89,494,581 |
| Reinsurers’ share of operating expenses | - | - | 0 | - | - | - | 0 | 0 |
| Changes in reinsurers’ share of liability for incurred claims | - | - | 0 | 4,335,519 | -787,589 | 108,257 | 3,656,187 | 3,656,187 |
| Changes in reinsurance loss-recovery component relating to onerous underlying contracts | - | -39,497 | -39,497 | - | - | - | 0 | -39,497 |
| Total amounts recovered from reinsurers | 0 | -39,497 | -39,497 | -77,903,863 | -7,929,378 | -5,153 | -85,838,394 | -85,877,891 |
| Reinsurance investment components | 7,509,865 | - | 7,509,865 |
| -2,863,312 | -4,646,553 | -7,509,865 | 0 | |
|---|---|---|---|---|
| 50,334,461 | -39,497 | 50,294,964 | -80,767,175 | -12,575,931 |
| -5,153 | -93,348,259 | -43,053,295 | Net finance income or expenses from reinsurance contracts | -334,056 |
| -334,056 | -2,006,286 | -182,765 | -23,335 | |
| -2,212,386 | -2,546,442 | Finance effects from credit risk | 1,255,566 | |
| 1,255,566 | 306,177 | 91,023 | 397,200 | |
| 1,652,766 | Effect of movement in exchange rates | 2,300 | 2,300 | |
| 47,996 | 47,996 | 50,296 | ||
| -5,842 | 148 | -5,694 | -3 | 5,549 |
| 268 | 5,814 | 120 | Total changes in the statement of profit or loss and other comprehensive income | 51,252,429 |
| -39,349 | 51,213,080 | -82,419,291 | -12,662,124 | -28,220 |
| -95,109,635 | -43,896,555 | Cash flows | Premiums received for insurance contracts issued | -47,770,461 |
| 0 | 42,401,318 | 10,543,667 | ||
| 52,944,985 | 52,944,985 | Total cash flows | -47,770,461 |
| EUR | Assets for remaining coverage – ARC | Assets for incurred claims – AIC | Total |
|---|---|---|---|
| Total ARC | Reinsurance contracts not measured using the PAA | Reinsurance contracts measured using the PAA | Total AIC |
| Excluding loss component | Loss component | Present value of future cash flows | Adjustment for non-financial risk |
| Assets | -1,330,270 | -118,836 | -1,449,106 |
| -59,010,346 | -3,177,539 | -541,277 | |
| -62,729,162 | -64,178,268 | ||
| Liabilities | 2,197,050 | -4,027 | 2,193,023 |
| -186,386 | -882,192 | -1,226 | |
| -1,069,804 | 1,123,219 | ||
| Opening balance – net assets/liabilities | 866,780 | -122,863 | 743,917 |
| -59,196,732 | -4,059,731 | -542,503 | |
| -63,798,966 | -63,055,049 |
| Other movements | 3,797 | - | 3,797 |
|---|---|---|---|
| - | - | 0 | |
| Assets | -128,434 | -117,386 | -245,820 |
| -102,985,870 | -3,639,001 | -368,737 | |
| -106,993,608 | -107,239,428 | ||
| Liabilities | 4,912,673 | -2 | 4,912,671 |
| -1,032,220 | -2,383,320 | -12,662 | |
| -3,428,202 | 1,484,469 | ||
| Closing balance – net assets/liabilities | 4,784,239 | -117,388 | 4,666,851 |
| -104,018,090 | -6,022,321 | -381,399 | |
| -110,421,810 | -105,754,959 | 333 |
| Amounts recoverable from insurance contracts ceded to reinsurers | 38,433,907 | 0 | 38,433,907 | 0 | 0 | 0 | 38,433,907 |
|---|---|---|---|---|---|---|---|
| Reinsurers’ share of incurred claims | - | - | 0 | -41,919,763 | -2,897,525 | -47,554 | -44,864,842 | -44,864,842 |
|---|---|---|---|---|---|---|---|---|
| - | - | 0 | 907,781 | 531,152 | 221,315 | 1,660,248 | 1,660,248 |
|---|---|---|---|---|---|---|---|
| - | 44,934 | 44,934 | - | - | - | 0 | 44,934 |
|---|---|---|---|---|---|---|---|
| 0 | 44,934 | 44,934 | -41,011,982 | -2,366,373 | 173,761 | -43,204,594 | -43,159,660 |
|---|---|---|---|---|---|---|---|
| 2,174,249 | - | 2,174,249 | 1,749,215 | -3,923,464 | - | -2,174,249 | 0 |
|---|---|---|---|---|---|---|---|
| 40,608,156 | 44,934 | 40,653,090 | -39,262,767 | -6,289,837 | 173,761 | -45,378,843 | -4,725,753 |
|---|---|---|---|---|---|---|---|
| 112,870 | - | 112,870 | 4,432,886 | 142,169 | 15,882 | 4,590,937 | 4,703,807 | |
|---|---|---|---|---|---|---|---|---|
| Finance effects from credit risk | 360,420 | - | 360,420 | 60,717 | 8,542 | - | 69,259 | 429,679 |
| Effect of movement in exchange rates | 17,516 | - | 17,516 | -261,418 | - | - | -261,418 | -243,902 |
| Foreign currency translation differences | 27,395 | -110 | 27,285 | 4 | -3,659 | -319 | -3,974 | 23,311 |
| Total changes in the statement of profit or loss and other comprehensive income | 41,126,357 | 44,824 | 41,171,181 | -35,030,578 | -6,142,785 | 189,324 | -40,984,039 | 187,142 |
| Cash flows | Premiums received for insurance contracts issued | -40,669,237 | - | -40,669,237 | - | - | 0 | -40,669,237 |
| Recovered claims and insurance service expenses | - | - | 0 | 30,227,193 | 6,298,652 | - | 36,525,845 | 36,525,845 |
| Total cash flows | -40,669,237 | 0 | -40,669,237 | 30,227,193 | 6,298,652 | 0 | 36,525,845 | -4,143,392 |
| Other movements | -25,426 | - | -25,426 | - | - | - |
| Assets | -25,426 |
|---|---|
| Liabilities | 2,280,268 |
| Closing balance – net assets/liabilities | 1,298,474 |
| Assets for incurred claims – AIC | Total | Total ARC |
|---|---|---|
| -200,557 | -200,557 | - |
| 0 | -200,557 |
| 183,175 | 183,175 |
|---|---|
| -27,920 | -27,920 |
| 155,255 |
| -17,382 | -17,382 |
|---|---|
| -27,920 | -27,920 |
| -45,302 |
| Allocation of reinsurers’ shares of premiums | Amounts recoverable from insurance contracts ceded to reinsurers |
|---|---|
| 247,180 | 247,180 |
| 0 | 0 |
| 247,180 |
| Reinsurers’ share of incurred claims | |
|---|---|
| - | 0 |
| -124,349 | -124,349 |
| -124,349 |
| Total amounts recovered from reinsurers | -110,000 | -110,000 | -110,000 |
|---|---|---|---|
| Result from reinsurance contracts held | 0 | 0 | -234,349 |
| 247,180 | 247,180 | -234,349 | |
| Net finance income or expenses from reinsurance contracts | 12,831 | 76,797 | 76,797 |
| Finance effects from credit risk | 297 | 297 | 77,094 |
| Effect of movement in exchange rates | - | 0 | - |
| Foreign currency translation differences | - | 0 | 0 |
| Total changes in the statement of profit or loss and other comprehensive income | -3 | -3 | - |
| Cash flows | 323,974 | 323,974 | -234,052 |
| Premiums received for insurance contracts issued | -268,815 | -268,815 | - |
| Recovered claims and insurance service expenses | - | 0 | 139,637 |
| Total cash flows | -268,815 | -268,815 | 139,637 |
| -129,178 | |||
| Assets | -128,969 | -128,969 | -113,162 |
| Liabilities | -113,162 | -242,131 | 166,746 |
| -9,173 | -9,173 | 157,573 | |
| Closing balance – net assets/liabilities | 37,777 | 37,777 | -122,335 |
| EUR | Assets for remaining coverage – ARC | Assets for incurred claims – AIC | Total |
|---|---|---|---|
| Total ARC | Reinsurance contracts not measured using the PAA | Total AIC | Excluding loss component |
| Assets | -84,558 | -67,739 | -67,739 |
| Liabilities | 253,582 | 253,582 | 0 |
| Opening balance – net assets/liabilities | 185,843 | 185,843 | 0 |
| Changes in the statement of profit or loss and other comprehensive income | Allocation of reinsurers’ shares of premiums | Amounts recoverable from insurance contracts ceded to reinsurers | 305,007 |
| Reinsurers’ shares of insurance service expenses | Reinsurers’ share of incurred claims | -147,432 | -147,432 |
| Changes in reinsurers’ share of liability for incurred claims | -27,999 | -27,999 | -27,999 |
| Total amounts recovered from reinsurers | 0 | -175,431 | -175,431 |
| Result from reinsurance contracts held | 305,007 | -175,431 | 129,576 |
| Net finance income or expenses from reinsurance contracts | -203,646 | 80 | -203,566 |
| Effect of movement in exchange rates | 2 |
| -2 | -2 | -2 | -2 | -4 |
|---|---|---|---|---|
| 101,361 | 101,361 | -175,353 | -175,353 | -73,992 |
|---|---|---|---|---|
| -304,586 | -304,586 | - | 0 | -304,586 |
|---|---|---|---|---|
| - | 0 | 147,433 | 147,433 | 147,433 |
|---|---|---|---|---|
| -304,586 | -304,586 | 147,433 | 147,433 | -157,153 |
|---|---|---|---|---|
| - | 0 | - | 0 |
|---|---|---|---|
| -200,557 | -200,557 | - | 0 | -200,557 |
|---|---|---|---|---|
| 183,175 | 183,175 | -27,920 | -27,920 | 155,255 |
|---|---|---|---|---|
| -17,382 | -17,382 | -27,920 | -27,920 | -45,302 |
|---|---|---|---|---|
| -602,359 | -602,359 |
|---|---|
| -60,622,555 | -60,622,555 |
|---|---|
-61,224,914
| 559,021 | 559,021 | -238,978 | -238,978 | 320,044 |
|---|---|---|---|---|
| -43,338 | -43,338 |
|---|---|
| -60,861,532 | -60,861,532 | -60,904,871 |
|---|---|---|
| Allocation of reinsurers’ shares of premiums | 0 | |
| Amounts recoverable from insurance contracts ceded to reinsurers | 30,235,703 | 30,235,703 |
| Reinsurers’ shares of insurance service expenses | Recoveries of incurred claims | - |
| 0 | -77,958,868 | -77,958,868 |
| Changes in amounts recoverable arising from changes in liability for incurred claims | - | 0 |
| 4,054,018 | 4,054,018 | 4,054,018 |
| Total amounts recovered from reinsurers | 0 | 0 |
| -73,904,850 | -73,904,850 | -73,904,850 |
| Reinsurance investment components | 2,863,312 | 2,863,312 |
| -2,863,312 | -2,863,312 | 0 |
| Result from reinsurance contracts held | 33,099,015 | 33,099,015 |
| -76,768,162 | -76,768,162 | -43,669,147 |
| Net finance income or expenses from reinsurance contracts | -267,763 | -267,763 |
| -1,929,864 | -1,929,864 | -2,197,627 |
| Finance effects from credit risk | 1,350,574 | 1,350,574 |
| 267,140 | 267,140 | 1,617,714 |
| Effect of movement in exchange rates | 2,300 | 2,300 |
| 47,997 | 47,997 | 50,297 |
| Total changes in the statement of profit or loss and other comprehensive income | 34,184,127 | 34,184,127 |
| -78,382,891 | -78,382,891 | -44,198,763 |
| -30,846,126 | -30,846,126 | 0 | -30,846,126 | |
|---|---|---|---|---|
| Recovered claims and insurance service expenses | 40,633,988 | 40,633,988 | 40,633,988 | |
| Total cash flows | -30,846,126 | -30,846,126 | 40,633,988 | 40,633,988 |
| 9,787,861 | Assets | 1,849,407 | 1,849,407 | -97,612,028 |
| -97,612,028 | -95,762,621 | Liabilities | 1,445,256 | 1,445,256 |
| -998,408 | -998,408 | 446,848 | Closing balance – net assets/liabilities | 3,294,663 |
| 3,294,663 | -98,610,435 | -98,610,435 | -95,315,773 | 337 |
| Assets for remaining coverage – ARC | Assets for incurred claims – AIC | Total | Total ARC | Reinsurance contracts not measured using the PAA |
| Total AIC | Excluding loss component | Assets | -1,577,227 | -1,577,227 |
| -54,491,270 | -54,491,270 | -56,068,497 | Liabilities | 947,441 |
| 947,441 | -180,896 | -180,896 | 766,545 | Opening balance – net assets/liabilities |
| -629,786 | -629,786 | -54,672,166 | -54,672,166 | -55,301,952 |
| Changes in the statement of profit or loss and other comprehensive income | 0 | Allocation of reinsurers’ shares of premiums | 0 | Amounts recoverable from insurance contracts ceded to reinsurers |
| 29,572,834 | 29,572,834 | 0 | 0 | 29,572,834 |
| Reinsurers’ shares of insurance service expenses |
| 0 | -40,069,392 | -40,069,392 | -40,069,392 | ||
|---|---|---|---|---|---|
| Changes in amounts recoverable arising from changes in liability for incurred claims | 0 | 628,975 | 628,975 | 628,975 | |
| Total amounts recovered from reinsurers | 0 | 0 | -39,440,417 | -39,440,417 | -39,440,417 |
| Reinsurance investment components | -1,749,215 | -1,749,215 | 1,749,215 | 1,749,215 | -0 |
| Result from reinsurance contracts held | 27,823,619 | 27,823,619 | -37,691,201 | -37,691,201 | -9,867,583 |
| Net finance income or expenses from reinsurance contracts | 104,041 | 104,041 | 4,344,640 | 4,344,640 | 4,448,681 |
| Finance effects from credit risk | 433,637 | 433,637 | 44,773 | 44,773 | 478,410 |
| Effect of movement in exchange rates | 17,516 | 17,516 | -261,419 | -261,419 | -243,902 |
| Total changes in the statement of profit or loss and other comprehensive income | 28,378,813 | 28,378,813 | -33,563,207 | -33,563,207 | -5,184,394 |
| Premiums received for insurance contracts issued | -27,792,365 | -27,792,365 | 0 | -27,792,365 | |
|---|---|---|---|---|---|
| Recovered claims and insurance service expenses | 0 | 27,373,840 | 27,373,840 | 27,373,840 | |
| Total cash flows | -27,792,365 | -27,792,365 | 27,373,840 | 27,373,840 | -418,525 |
| -602,359 | -602,359 | -60,622,555 | -60,622,555 | -61,224,914 |
|---|---|---|---|---|
| 559,021 | 559,021 | -238,978 |
|---|---|---|
| EUR | Present value of future cash flows | Adjustment for non-financial risk | Contractual service margin | Total insurance contracts not measured using the PAA | Total insurance contracts measured using the PAA | Total insurance contracts | Contracts under the fair value approach | Other contracts | Total contractual service margin |
|---|---|---|---|---|---|---|---|---|---|
| Assets | -11,982,626 | 1,390,322 | - | 3,798,176 | 3,798,176 | -6,794,128 | -247,597 | -7,041,725 | |
| Liabilities | 147,889,212 | 21,917,386 | 316,216 | 6,410,925 | 6,727,141 | 176,533,739 | 453,619,151 | 630,152,890 | |
| Opening balance – net assets/liabilities | 135,906,586 | 23,307,708 | 316,216 | 10,209,101 | 10,525,317 | 169,739,611 | 453,371,554 | 623,111,165 | |
| Changes in the statement of profit or loss and other comprehensive income | Changes that relate to future services | -32,267,932 | 11,238,939 | 171,700 | 27,897,612 | 28,069,312 | 7,040,319 | -512,811,476 | -505,771,157 |
| Changes in estimates that adjust the contractual service margin | 1,880,224 | 222,384 | 171,341 | -835,202 | -663,861 | 1,438,747 | 0 | 1,438,747 | |
| Changes in estimates that do not adjust the contractual service margin (recognition/reversals of losses on onerous contracts) | -1,734,317 | 16,361 | 359 | 6,469,617 | 6,469,976 | 4,752,020 | 0 | 4,752,020 | |
| Effects of contracts initially recognised in the period | -32,413,839 | 11,000,194 | - | - | - | - | - | - | - |
| 22,263,197 | 22,263,197 | 849,552 | 0 | 849,552 | ||||
|---|---|---|---|---|---|---|---|---|
| 0 | -512,811,476 | -512,811,476 | Changes that relate to current service | |||||
| 24,323,239 | -3,431,319 | -392,991 | -27,068,080 | -27,461,071 | -6,569,151 | 0 | -6,569,151 | |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | - | - | -392,991 | -27,068,080 | -27,461,071 | -27,461,071 | 0 | -27,461,071 |
| Change in the risk adjustment for non-financial risk that does not relate to future service or past service | - | -3,431,319 | - | - | -3,431,319 | 0 | -3,431,319 | |
| Experience adjustment | 24,323,239 | - | - | - | 24,323,239 | 0 | 24,323,239 | |
| Changes that relate to past service | -16,248,072 | -11,391,615 | 0 | 0 | 0 | -27,639,687 | 520,325,169 | 492,685,482 |
| Changes in fulfilment cash flows relating to incurred claims | -16,248,072 | -11,391,615 | - | - | - | -27,639,687 | 520,325,169 | 492,685,482 |
| Insurance service result | -24,192,765 | -3,583,995 | -221,291 | 829,532 | 608,241 | -27,168,519 | 7,513,693 | -19,654,826 |
| Net finance income or expenses from insurance contracts | 5,118,653 | 1,509,774 | 4,572 | 1,140,752 | 1,145,324 | 7,773,751 | 12,985,953 | 20,759,704 |
| Effect of movement in exchange rates | -5,148,587 |
-935,077-523,345-6,607,00918,311-6,588,698
| -24,222,699 | -3,009,298 | -216,719 | 1,446,937 | 1,230,218 | -26,001,779 | 20,517,292 | -5,484,487 |
|---|---|---|---|---|---|---|---|
| 108,957,590 | - | - | - | - | 108,957,590 | 545,163,082 | 654,120,672 |
|---|---|---|---|---|---|---|---|
| -78,866,700 | - | - | - | - | -78,866,700 | -414,325,539 | -493,192,239 |
|---|---|---|---|---|---|---|---|
| -9,770,186 | - | - | - | - | -9,770,186 | -86,047,236 | -95,817,422 |
|---|---|---|---|---|---|---|---|
| 20,320,704 | 0 | 0 | 0 | 0 | 20,320,704 | 44,790,307 | 65,111,011 |
|---|---|---|---|---|---|---|---|
| - | - | - | - | - | 0 | -30,151 | -30,151 |
|---|---|---|---|---|---|---|---|
| -14,016,607 | 1,011,471 | - | 4,824,767 | 4,824,767 | -8,180,369 | -488,770 | -8,669,139 |
|---|---|---|---|---|---|---|---|
| 146,021,198 | 19,286,939 | 99,497 | 6,831,271 | 6,930,768 | 172,238,905 | 519,137,772 | 691,376,677 |
|---|---|---|---|---|---|---|---|
| 132,004,591 | 20,298,410 | 99,497 | 11,656,038 | 11,755,535 | 164,058,536 | 518,649,002 | 682,707,538 |
|---|---|---|---|---|---|---|---|
| Present value of future cash flows | -12,675,106 |
|---|---|
| Adjustment for non-financial risk | 1,451,502 |
| Contractual service margin | - |
| Total insurance contracts not measured using the PAA | 3,988,873 |
| Total insurance contracts measured using the PAA | 3,988,873 |
| Total insurance contracts | -7,234,731 |
| Contracts under the fair value approach | -202,514 |
| Other contracts | -7,437,245 |
| Total contractual service margin | - |
| -12,675,106 | 1,451,502 | - | 3,988,873 | 3,988,873 | -7,234,731 | -202,514 | -7,437,245 |
|---|---|---|---|---|---|---|---|
| 157,695,709 | 20,137,664 | 491,947 | 7,632,607 | 8,124,554 | 185,957,927 | 451,394,103 | 637,352,030 |
|---|---|---|---|---|---|---|---|
| 145,020,603 | 21,589,166 | 491,947 | 11,621,480 | 12,113,427 | 178,723,196 | 451,191,589 | 629,914,785 |
|---|---|---|---|---|---|---|---|
| -24,444,489 | 11,651,889 | -71,213 | 20,946,400 | 20,875,187 | 8,082,587 | -441,334,136 | -433,251,549 |
|---|---|---|---|---|---|---|---|
| -38,531 | 187,562 | -220,396 | 2,737,377 | 2,516,981 | 2,666,012 | 0 | 2,666,012 |
|---|---|---|---|---|---|---|---|
| -1,919,205 | -226,195 | 149,183 |
|---|---|---|
| 4,051,374 | 4,200,557 | 2,055,157 | 0 | 2,055,157 |
|---|---|---|---|---|
| -22,486,753 | 11,690,522 | - | 14,157,649 | 14,157,649 |
| 3,361,418 | 0 | 3,361,418 | - | - |
| Effects of contracts measured using the PAA | 0 | -441,334,136 | -441,334,136 | - |
| Changes that relate to current service | 21,308,066 | -3,223,478 | -113,604 | -22,614,510 |
| -22,728,114 | -4,643,526 | 0 | -4,643,526 | - |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | - | - | -113,604 | -22,614,510 |
| -22,728,114 | -22,728,114 | 0 | -22,728,114 | - |
| Change in the risk adjustment for non-financial risk that does not relate to future service or past service | - | -3,223,478 | - | - |
| -3,223,478 | 0 | -3,223,478 | - | - |
| Experience adjustment | 21,308,066 | - | - | - |
| - | 21,308,066 | 0 | 21,308,066 | - |
| Changes that relate to past service | -26,690,239 | -6,512,697 | 0 | 0 |
| 0 | -33,202,936 | 419,763,075 | 386,560,139 | - |
| Changes in fulfilment cash flows relating to incurred claims | -26,690,239 | -6,512,697 | - | - |
| - | -33,202,936 | 419,763,075 | 386,560,139 | - |
| Insurance service result | -29,826,662 | 1,915,714 | -184,817 | -1,668,110 |
| -1,852,927 | -29,763,875 | -21,571,061 | -51,334,936 | - |
| Net finance income or expenses from insurance contracts | -2,389,610 | - | - | - |
| -330,299 | 83,330 | - | -111,230 | -111,230 | -358,199 | 111,676 | -246,523 |
|---|---|---|---|---|---|---|---|
| -1 | -2 | - | -2 | -2 | -5 | -23,374 | -23,379 |
|---|---|---|---|---|---|---|---|
| -32,546,572 | 1,718,542 | -175,731 | -1,412,379 | -1,588,110 | -32,416,140 | -45,593,071 | -78,009,211 |
|---|---|---|---|---|---|---|---|
| 105,048,250 | - | - | - | - | 105,048,250 | 447,082,460 | 552,130,710 |
|---|---|---|---|---|---|---|---|
| -72,542,329 | - | - | - | - | -72,542,329 | -326,028,802 | -398,571,131 |
|---|---|---|---|---|---|---|---|
| -9,073,366 | - | - | - | - | -9,073,366 | -73,313,414 | -82,386,780 |
|---|---|---|---|---|---|---|---|
| 23,432,555 | 0 | 0 | 0 | 0 | 23,432,555 | 47,740,244 | 71,172,799 |
|---|---|---|---|---|---|---|---|
| - | - | - | - | - | 0 | 32,792 | 32,792 |
|---|---|---|---|---|---|---|---|
| Assets | -11,982,626 | 1,390,322 | - | 3,798,176 | 3,798,176 | -6,794,128 | -247,597 | -7,041,725 |
|---|---|---|---|---|---|---|---|---|
| Liabilities | 147,889,212 | 21,917,386 | 316,216 | 6,410,925 | 6,727,141 | 176,533,739 | 453,619,151 | 630,152,890 |
| Closing balance – net assets/liabilities | 135,906,586 | 23,307,708 | 316,216 | 10,209,101 | 10,525,317 | 169,739,611 | 453,371,554 | 623,111,165 |
| Present value of future cash flows | -1,440,104 | 224,654 | 733,776 | 1,083 | 383,975 | 1,118,834 | -96,616 | -96,616 |
|---|---|---|---|---|---|---|---|---|
| Liabilities | 698,607,643 | 30,802,689 | 70,803,096 | 911,525 | 53,037,313 | 124,751,934 | 854,162,266 | 854,162,266 |
| Opening balance – net assets/liabilities | 697,167,539 | 31,027,343 | 71,536,872 | 912,608 | 53,421,288 | 125,870,768 | 854,065,650 | 854,065,650 |
| Changes that relate to future services | -43,363,111 | 3,834,523 | 4,973,937 | 2,405,702 | 26,541,583 | 33,921,222 | -5,607,366 | -5,607,366 |
|---|---|---|---|---|---|---|---|---|
| Changes in estimates that adjust the contractual service margin | -15,525,170 | 382,206 | 3,770,294 |
| -435,515 | -50,691 | 103,854 | 194,337 | 107,779 | 405,970 | -80,236 | -80,236 |
|---|---|---|---|---|---|---|---|
| -27,402,426 | 3,503,008 | 1,099,789 | - | 23,316,523 | 24,416,312 | 516,894 | 516,894 |
|---|---|---|---|---|---|---|---|
| 7,970,550 | -4,137,020 | -9,992,513 | -1,085,171 | -6,331,735 | -17,409,419 | -13,575,889 | -13,575,889 |
|---|---|---|---|---|---|---|---|
| - | - | -9,992,513 | -1,085,171 | -6,331,735 | -17,409,419 | -17,409,419 | -17,409,419 |
|---|---|---|---|---|---|---|---|
| - | -4,137,020 | - | - | - | - | -4,137,020 | -4,137,020 |
|---|---|---|---|---|---|---|---|
| 7,970,550 | - | - | - | - | - | 7,970,550 | 7,970,550 |
|---|---|---|---|---|---|---|---|
| -1,361,258 | -237,949 | 0 | 0 | 0 | 0 | -1,599,207 | -1,599,207 |
|---|---|---|---|---|---|---|---|
| -1,361,258 | -237,949 | - | - | - | - | -1,599,207 | -1,599,207 |
|---|---|---|---|---|---|---|---|
| -36,753,819 | -540,446 | -5,018,576 | 1,320,531 | 20,209,848 | 16,511,803 | -20,782,462 | -20,782,462 |
|---|---|---|---|---|---|---|---|
| 1,416,935 | 697,427 | -42,656 | 525,401 | 1,180,172 | 80,922,834 | 80,922,834 | ||
|---|---|---|---|---|---|---|---|---|
| -21,581 | -964 | -2,382 | 0 | -3,279 | -5,661 | -28,206 | -28,206 | |
| Foreign currency translation differences | 4,892 | -177 | -326 | 0 | -4,803 | -5,129 | -414 | -414 |
| Total changes in the statement of profit or loss and other comprehensive income | 41,555,219 | 875,348 | -4,323,857 | 1,277,875 | 20,727,167 | 17,681,185 | 60,111,752 | 60,111,752 |
| Premiums received for insurance contracts issued | 194,809,673 | - | - | - | - | - | 194,809,673 | 194,809,673 |
|---|---|---|---|---|---|---|---|---|
| Claims incurred and insurance service expenses paid | -133,937,909 | - | - | - | - | - | -133,937,909 | -133,937,909 |
| Insurance acquisition cash flows | -16,332,938 | - | - | - | - | - | -16,332,938 | -16,332,938 |
| Total cash flows | 44,538,826 | 0 | 0 | 0 | 0 | 0 | 44,538,826 | 44,538,826 |
| Other movements | -8,805 | - | - | - | - | - | -8,805 | -8,805 |
| -53,393,210 | 10,505,548 | 21,670,306 | 2,538 | 20,276,668 | 41,949,512 | -938,150 | -938,150 |
|---|---|---|---|---|---|---|---|
| 836,645,989 | 21,397,143 | 45,542,709 | 2,187,945 | 53,871,787 | 101,602,441 | 959,645,573 | 959,645,573 |
|---|---|---|---|---|---|---|---|
| 783,252,779 | 31,902,691 | 67,213,015 | 2,190,483 | 74,148,455 | 143,551,953 | 958,707,423 | 958,707,423 |
|---|---|---|---|---|---|---|---|
| -58,575,161 | 10,714,284 | 32,171,902 | 10,495 | 8,736,665 | 40,919,062 | -6,941,815 | -6,941,815 |
|---|---|---|---|---|---|---|---|
| 889,171,403 | 18,516,710 | 47,458,680 | 854,109 | 27,749,890 | 76,062,679 | 983,750,792 | 983,750,792 |
|---|---|---|---|---|---|---|---|
| 830,596,242 | 29,230,994 | 79,630,582 | 864,604 | 36,486,555 | 116,981,741 | 976,808,977 | 976,808,977 |
|---|---|---|---|---|---|---|---|
| -20,294,544 | 8,574,434 | -1,245,868 | -915,387 | 19,123,209 | 16,961,954 | 5,241,844 | 5,241,844 |
|---|---|---|---|---|---|---|---|
| 6,895,448 | 4,524,364 | -1,837,514 |
|---|---|---|
| -1,272,523 | -5,009,688 | -8,119,725 | 3,300,087 | 3,300,087 | ||||
|---|---|---|---|---|---|---|---|---|
| Changes in estimates that do not adjust the contractual service margin (recognition/reversals of losses on onerous contracts) | 885,102 | 55,477 | 29,985 | 357,136 | 12,344 | 399,465 | 1,340,044 | 1,340,044 |
| Effects of contracts initially recognised in the period | -28,075,094 | 3,994,593 | 561,661 | - | 24,120,553 | 24,682,214 | 601,713 | 601,713 |
| Changes that relate to current service | -2,726,847 | -3,314,887 | -11,084,537 | -121,730 | -4,513,148 | -15,719,415 | -21,761,149 | -21,761,149 |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | - | - | -11,084,537 | -121,730 | -4,513,148 | -15,719,415 | -15,719,415 | -15,719,415 |
| Change in the risk adjustment for non-financial risk that does not relate to future service or past service | - | -3,314,887 | - | - | - | - | -3,314,887 | -3,314,887 |
| Experience adjustment | -2,726,847 | - | - | - | - | - | -2,726,847 | -2,726,847 |
| Changes that relate to past service | -3,334,925 | -288,085 | 0 | 0 | 0 | 0 | -3,623,010 | -3,623,010 |
| Changes in fulfilment cash flows relating to incurred claims | -3,334,925 | -288,085 | - | - | - | - | -3,623,010 | -3,623,010 |
| Insurance service result | -26,356,316 | 4,971,462 | -12,330,405 | -1,037,117 | 14,610,061 | 1,242,539 | -20,142,315 | -20,142,315 |
| Net finance income or expenses from insurance contracts | -137,227,605 |
| -3,173,902 | 4,241,281 | 1,085,120 | 2,326,498 | 7,652,899 | -132,748,608 | -132,748,608 |
|---|---|---|---|---|---|---|
| -827,545 | 1,099 | 3,721 | 1 | 1,230 | 4,952 | -821,494 | -821,494 |
|---|---|---|---|---|---|---|---|
| -164,398,273 | 1,796,349 | -8,093,710 | 48,004 | 16,934,733 | 8,889,027 | -153,712,897 | -153,712,897 |
|---|---|---|---|---|---|---|---|
| 180,750,118 | - | - | - | - | - | 180,750,118 | 180,750,118 |
|---|---|---|---|---|---|---|---|
| -135,173,500 | - | - | - | - | - | -135,173,500 | -135,173,500 |
|---|---|---|---|---|---|---|---|
| -14,842,731 | - | - | - | - | - | -14,842,731 | -14,842,731 |
|---|---|---|---|---|---|---|---|
| 30,733,887 | 0 | 0 | 0 | 0 | 0 | 30,733,887 | 30,733,887 |
|---|---|---|---|---|---|---|---|
| 235,683 | - | - | - | - | - | 235,683 | 235,683 |
|---|---|---|---|---|---|---|---|
| -1,440,104 | 224,654 | 733,776 | 1,083 | 383,975 | 1,118,834 | -96,616 | -96,616 |
|---|---|---|---|---|---|---|---|
| 698,607,643 | 30,802,689 | 70,803,096 | 911,525 | 53,037,313 | 124,751,934 | 854,162,266 | 854,162,266 |
|---|---|---|---|---|---|---|---|
| 697,167,539 | 31,027,343 | 71,536,872 | 912,608 | 53,421,288 | 125,870,768 | 854,065,650 | 854,065,650 |
|---|---|---|---|---|---|---|---|
| Present value of future cash flows | Adjustment for non-financial risk | Contractual service margin | Total insurance contracts not measured using the PAA | Total insurance contracts measured using the PAA | Total insurance contracts | Contracts under the modified retrospective approach | Contracts under the fair value approach | Other contracts | Total contractual service margin |
|---|---|---|---|---|---|---|---|---|---|
| -4,902,477 | 1,118,175 | 23 | - | 728,718 | 728,742 | -3,055,560 | -16,071 | -3,071,631 |
| 216,898,328 | 32,090,420 | 544,685 | 131,582 | 6,996,756 | 7,673,022 | 256,661,771 | 15,752,280 | 272,414,051 |
|---|---|---|---|---|---|---|---|---|
| 211,995,851 | 33,208,596 | 544,708 | 131,582 | 7,725,474 | 8,401,764 | 253,606,211 | 15,736,209 | 269,342,420 |
|---|---|---|---|---|---|---|---|---|
| -52,521,291 | 16,030,102 | -47,498 | 401,890 | 43,526,054 | 43,880,446 | 7,389,256 | -9,972,681 | -2,583,425 |
|---|---|---|---|---|---|---|---|---|
| -7,499,084 | -104,539 | -69,815 | 401,890 | 8,837,867 | 9,169,941 | 1,566,319 | 0 | 1,566,319 |
|---|---|---|---|---|---|---|---|---|
| -1,875,104 | -21,671 | 22,318 | 0.03 | 6,826,073 | 6,848,391 | 4,951,615 | 0 | 4,951,615 |
|---|---|---|---|---|---|---|---|---|
| -43,147,103 | 16,156,312 | - | - | 27,862,113 | 27,862,113 | 871,322 | 0 | 871,322 |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | - | - | 0 | -9,972,681 | -9,972,681 |
|---|---|---|---|---|---|---|---|---|
| 38,564,349 | -5,362,284 | -197,088 | -417,817 | -42,968,137 | -43,583,041 | -10,380,976 | 0 | -10,380,976 |
|---|---|---|---|---|---|---|---|---|
| - | - | -197,088 | -417,817 | -42,968,137 | -43,583,041 | -43,583,041 | 0 | -43,583,041 |
|---|---|---|---|---|---|---|---|---|
| - | -5,362,284 | - | - | - | 0 | -5,362,284 | 0 | -5,362,284 |
|---|---|---|---|---|---|---|---|---|
| 38,564,349 | (0.00) | - | - | - | 0 |
|---|---|---|---|---|---|
| 38,564,349 | 0 | 38,564,349 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Changes that relate to past service | -12,142,948 | -17,210,153 | 0 | 0 | 0 | 0 | -29,353,101 | 49,004,293 | 19,651,192 |
| Changes in fulfilment cash flows relating to incurred claims | -12,142,948 | -17,210,153 | - | - | - | 0 | -29,353,101 | 49,004,293 | 19,651,192 |
| Insurance service result | -26,099,889 | -6,542,336 | -244,585 | -15,927 | 557,917 | 297,404 | -32,344,821 | 39,031,612 | 6,686,791 |
| Net finance income or expenses from insurance contracts | 7,944,769 | 2,082,193 | -2,290 | 2,219 | 1,345,531 | 1,345,460 | 11,372,422 | 829,918 | 12,202,340 |
| Effect of movement in exchange rates | -5,218,155 | -951,093 | - | -75 | -523,345 | -523,420 | -6,692,669 | 10,038 | -6,682,630 |
| Total changes in the statement of profit or loss and other comprehensive income | -23,373,276 | -5,411,236 | -246,875 | -13,783 | 1,380,103 | 1,119,444 | -27,665,067 | 39,871,569 | 12,206,501 |
| Premiums received for insurance contracts issued | 153,462,566 | - | - | - | - | 0 | 153,462,566 | 9,424,967 | 162,887,532 |
|---|---|---|---|---|---|---|---|---|---|
| Claims incurred and insurance service expenses paid | -120,063,682 | - | - | - |
| EUR | |
|---|---|
| Present value of future cash flows | -120,063,682 |
| Adjustment for non-financial risk | -25,507,274 |
| Contractual service margin | -145,570,956 |
| Insurance acquisition cash flows | -8,077,162 |
| Total cash flows | 25,321,721 |
| Assets | -16,213,264 |
| Liabilities | -7,068,622 |
| 673,921 | |
| 1,313,223 | |
| Total insurance contracts not measured using the PAA | -5,081,479 |
| Total insurance contracts measured using the PAA | -13,866 |
| Total insurance contracts | -5,095,344 |
| Contracts under the modified retrospective approach | 221,012,919 |
| Contracts under the fair value approach | 27,123,439 |
| Other contracts | 297,833 |
| Total contractual service margin | 117,799 |
| Closing balance – net assets/liabilities | 39,408,380 |
| 295,752,723 | |
| 213,944,297 | |
| 27,797,360 | |
| 297,833 | |
| 117,799 | |
| 9,105,576 | |
| 9,521,208 | |
| 251,262,865 | |
| 39,394,514 | |
| 290,657,379 | |
| 343 | |
| Liabilities | -4,348,362 |
| Assets | 236,905,166 |
| 29,677,243 | |
| 3,178,028 | |
| 191,511 | |
| 4,851,790 | |
| 8,221,328 | |
| 274,803,738 | |
| 16,643,169 | |
| 291,446,906 |
232,556,80430,878,1273,178,028191,5115,585,4728,955,010272,389,94215,993,527288,383,469
| -47,972,792 | 15,801,002 | 7,643,826 | 358,681 | 32,024,472 | 40,026,979 | 7,855,188 | -7,447,982 | 407,206 |
|---|---|---|---|---|---|---|---|---|
| -14,562,375 | -160,780 | 7,626,668 | 355,233 | 9,636,844 | 17,618,746 | 2,895,591 | 0 | 2,895,591 |
|---|---|---|---|---|---|---|---|---|
| -2,434,376 | -273,423 | 17,157 | 3,448 | 4,218,841 | 4,239,446 | 1,531,646 | 0 | 1,531,646 |
|---|---|---|---|---|---|---|---|---|
| -30,976,041 | 16,235,205 | - | - | 18,168,787 | 18,168,787 | 3,427,951 | 0 | 3,427,951 |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | - | - | 0 | -7,447,982 | -7,447,982 |
|---|---|---|---|---|---|---|---|---|
| 46,231,846 | -2,686,213 | -10,262,110 | -421,306 | -30,094,550 | -40,777,966 | 2,767,667 | 0 | 2,767,667 |
|---|---|---|---|---|---|---|---|---|
| - | - | -10,262,110 | -421,306 | -30,094,550 | -40,777,966 | -40,777,966 |
|---|---|---|---|---|---|---|
| -40,777,966 | Change in the risk adjustment for non-financial risk that does not relate to future service or past service | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| -2,686,213 | |||||||||
| 0 | -2,686,213 | ||||||||
| 0 | -2,686,213 | ||||||||
| Experience adjustment | 46,231,846 | ||||||||
| -17,786,380 | -9,975,397 | 0 | 0 | 0 | 0 | -27,761,777 | 6,349,498 | -21,412,279 | |
| Changes in fulfilment cash flows relating to incurred claims | -17,786,380 | -9,975,397 | 0 | -27,761,777 | 6,349,498 | -21,412,279 | |||
| Insurance service result | -19,527,326 | 3,139,392 | -2,618,284 | -62,625 | 1,929,922 | -750,987 | -17,138,921 | -1,098,484 | -18,237,405 |
| Net finance income or expenses from insurance contracts | -8,710,197 | -970,057 | -15,035 | 2,736 | 321,310 | 309,010 | -9,371,243 | -2,359,397 | -11,730,640 |
| Effect of movement in exchange rates | -25,091 | 161,133 | -39 | -111,230 | -111,269 | 24,773 | -22,154 | 2,619 | |
| Total changes in the statement of profit or loss and other comprehensive income | -28,262,614 | 2,330,469 | -2,633,320 | -59,929 | 2,140,002 | -553,246 | -26,485,392 | -3,480,035 | -29,965,427 |
| 146,422,654 | - | - | - | - | 0 | 146,422,654 | 6,740,762 | 153,163,416 |
|---|---|---|---|---|---|---|---|---|
| -131,695,671 | - | - | - | - | 0 | -131,695,671 | -3,439,469 | -135,135,140 |
|---|---|---|---|---|---|---|---|---|
| -7,025,322 | - | - | - | - | 0 | -7,025,322 | -78,576 | -7,103,897 |
|---|---|---|---|---|---|---|---|---|
| 7,701,661 | 0 | 0 | 0 | 0 | 0 | 7,701,661 | 3,222,717 | 10,924,378 |
|---|---|---|---|---|---|---|---|---|
| -4,902,477 | 1,118,175 | 23 | 0 | 728,718 | 728,742 | -3,055,560 | -16,071 | -3,071,631 |
|---|---|---|---|---|---|---|---|---|
| 216,898,328 | 32,090,420 | 544,685 | 131,582 | 6,996,756 | 7,673,022 | 256,661,771 | 15,752,280 | 272,414,051 |
|---|---|---|---|---|---|---|---|---|
| 211,995,851 | 33,208,596 | 544,708 | 131,582 | 7,725,474 | 8,401,764 | 253,606,211 | 15,736,209 | 269,342,420 |
|---|---|---|---|---|---|---|---|---|
| -53,912,524 | -4,879,702 | -5,890,831 | -5,890,831 | -64,683,057 | -3,250,028 | -67,933,085 | ||
|---|---|---|---|---|---|---|---|---|
| 512,972 | -40,081 | -91,838 | -91,838 | 381,053 | 515,306 | 896,359 | ||
|---|---|---|---|---|---|---|---|---|
| -53,399,552 | -4,919,783 | 0 | 0 | -5,982,669 | -5,982,669 | -64,302,004 | -2,734,722 | -67,036,726 |
|---|---|---|---|---|---|---|---|---|
| 21,944,374 | -4,486,142 | -13,600 | -20,262 | -17,411,785 | -17,445,647 | 12,585 | 6,576,428 | 6,589,013 |
|---|---|---|---|---|---|---|---|---|
| 5,095,447 | 295,229 | -13,039 | -20,262 | -5,264,631 | -5,297,932 | 92,744 | 0 | 92,744 |
|---|---|---|---|---|---|---|---|---|
| -2,692 | -2,692 | -2,692 | 0 | -2,692 | ||||
|---|---|---|---|---|---|---|---|---|
| -561 | -76,907 | -77,468 | -77,468 | 0 | -77,468 | |||
|---|---|---|---|---|---|---|---|---|
| 16,848,927 | -4,781,371 | -12,067,555 | -12,067,555 | 1 | ||
|---|---|---|---|---|---|---|
| 0 | 1 |
|---|---|
| 6,576,428 | 6,576,428 |
| Changes that relate to current service | -65,042,513 |
| 241,262 | 13,607 |
| 30,909 | 18,747,624 |
| 18,792,140 | -46,009,111 |
| 0 | -46,009,111 |
| Amount of the contractual service margin recognised in profit or loss | - |
| - | 13,607 |
| 30,909 | 18,747,624 |
| 18,792,140 | 18,792,140 |
| Change in the risk adjustment for non-financial risk that does not relate to future service or past service | - |
| 241,262 | - |
| - | - |
| - | 241,262 |
| Experience adjustment | -65,042,513 |
| - | - |
| - | - |
| - | -65,042,513 |
| Changes that relate to past service | 6,150,485 |
| -1,814,966 | 0 |
| 0 | 0 |
| 0 | 4,335,519 |
| -7,968,712 | -3,633,193 |
| Changes in fulfilment cash flows relating to incurred claims | 6,150,485 |
| -1,814,966 | - |
| - | - |
| - | 4,335,519 |
| -7,968,712 | -3,633,193 |
| Result from reinsurance contracts held | -36,947,654 |
| -6,059,846 | 7 |
| 10,647 | 1,335,839 |
| 1,346,493 | -41,661,007 |
| -1,392,284 | -43,053,291 |
| Net finance income or expenses from reinsurance contracts | -1,614,282 |
| -333,868 | 4 |
| 251 | -392,446 |
| -392,191 | -2,340,341 | -206,100 | -2,546,441 | |
|---|---|---|---|---|
| 1,561,743 | - | - | - | - |
| 0 | 1,561,743 | 91,023 | 1,652,766 | |
| Effect of movement in exchange rates | 36,258 | 6,545 | - | - |
| 7,493 | 7,493 | 50,296 | 0 | 50,296 |
| Foreign currency translation differences | 2.00 | -3 | 1 | -1 |
| -2 | -2 | -3 | 121 | 118 |
| Total changes in the statement of profit or loss and other comprehensive income | -36,963,933 | -6,387,172 | 12 | 10,897 |
| 950,884 | 961,793 | -42,389,312 | -1,507,240 | -43,896,552 |
| Premiums received for insurance contracts issued | -36,611,496 | - | - | - |
|---|---|---|---|---|
| - | - | -36,611,496 | -11,158,965 | -47,770,461 |
| Recovered claims and insurance service expenses | 42,401,318 | - | - | - |
| - | - | 42,401,318 | 10,543,667 | 52,944,985 |
| Total cash flows | 5,789,822 | 0 | 0 | 0 |
| 0 | 0 | 5,789,822 | -615,298 | 5,174,524 |
| - | - | - |
|---|---|---|
| 0 | 3,797 | 3,797 |
|---|---|---|
| -85,862,361 | -11,203,130 | 12 |
| 10,897 | -4,389,028 | -4,378,119 |
| -101,443,610 | -5,795,817 | -107,239,427 |
| 1,288,698 | -103,825 | 0 |
|---|---|---|
| 0 | -642,757 | -642,757 |
| 542,116 | 942,354 | 1,484,470 |
| -84,573,663 | -11,306,955 | 12 |
|---|---|---|
| 10,897 | -5,031,785 | -5,020,876 |
| -100,901,494 | -4,853,463 | -105,754,957 |
| Present value of future cash flows | Adjustment for non-financial risk | Contractual service margin |
|---|---|---|
| Total reinsurance contracts not measured using the PAA | Total reinsurance contracts measured using the PAA | Total reinsurance contracts |
| Contracts under the modified retrospective approach | Contracts under the fair value approach | Other contracts |
| Total contractual service margin |
| -50,829,073 | -5,399,611 | -239,309 |
|---|---|---|
| - | -4,238,660 | -4,477,969 |
| -60,706,653 | -3,471,613 | -64,178,266 |
| 1,032,032 | -91,279 | -6,853 |
|---|---|---|
| - | -49,581 | -56,434 |
| 884,319 | 238,901 | 1,123,220 |
| -49,797,041 | -5,490,890 | -246,162 |
|---|---|---|
| 0 | -4,288,241 | -4,534,403 |
| -59,822,334 | -3,232,712 | -63,055,046 |
| 20,558,265 | -4,648,747 | -175,969 | 104,044 | -19,314,808 | -19,386,733 | -3,477,215 | 4,088,926 | 611,711 |
|---|---|---|---|---|---|---|---|---|
| 4,960,399 | 442,621 | -175,971 | 104,044 | -8,749,604 | -8,821,531 | -3,418,511 | 0 | -3,418,511 |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | -5,111 | -5,111 | -5,111 | 0 | -5,111 |
|---|---|---|---|---|---|---|---|---|
| - | - | 2 | - | -53,593 | -53,591 | -53,591 | 0 | -53,591 |
|---|---|---|---|---|---|---|---|---|
| 15,597,866 | -5,091,368 | - | - | -10,506,500 | -10,506,500 | -2 | 0 | -2 |
|---|---|---|---|---|---|---|---|---|
| 0 | 4,088,926 | 4,088,926 |
|---|---|---|
| -24,576,997 | 2,572,595 | 420,904 | -104,045 | 17,589,599 | 17,906,458 | -4,097,944 | 0 | -4,097,944 |
|---|---|---|---|---|---|---|---|---|
| - | - | 420,904 | -104,045 | 17,589,599 | 17,906,458 | 17,906,458 | 17,906,458 |
|---|---|---|---|---|---|---|---|
| - | 2,572,595 | - | - | - | - |
|---|---|---|---|---|---|
| 2,572,595 | 2,572,595 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Experience adjustment | -24,576,997 | ||||||||
| Changes that relate to past service | -1,262,454 | 2,170,235 | 0 | 0 | 0 | 0 | 907,781 | -2,147,304 | -1,239,523 |
| Changes in fulfilment cash flows relating to incurred claims | -1,262,454 | 2,170,235 | - | - | - | - | 907,781 | -2,147,304 | -1,239,523 |
| Result from reinsurance contracts held | -5,281,186 | 94,083 | 244,935 | -1 | -1,725,209 | -1,480,275 | -6,667,378 | 1,941,622 | -4,725,756 |
| Net finance income or expenses from reinsurance contracts | 4,036,753 | 478,844 | 1,227 | - | 28,931 | 30,158 | 4,545,755 | 158,051 | 4,703,806 |
| Finance effects from credit risk | 421,137 | - | - | - | - | - | 421,137 | 8,542 | 429,679 |
| Effect of movement in exchange rates | -243,929 | -1,824 | - | - | 1,851 | 1,851 | -243,902 | 0 | -243,902 |
| Foreign currency translation differences | 4 | 4 | 0 | 1 | -1 | - | 8 | 23,303 | 23,311 |
| Total changes in the statement of profit or loss and other comprehensive income | -1,067,221 | 571,107 | 246,162 | 0 |
| -1,694,428 | -1,448,266 | -1,944,380 | 2,131,518 | 187,138 |
|---|---|---|---|---|
| Premiums received for insurance contracts issued | -32,762,483 | -32,762,483 | ||||
|---|---|---|---|---|---|---|
| -7,906,754 | -40,669,237 | |||||
| Recovered claims and insurance service expenses | 30,227,193 | 30,227,193 | ||||
| 6,298,652 | 36,525,845 | |||||
| Total cash flows | -2,535,290 | 0 | 0 | 0 | 0 | -2,535,290 |
| -1,608,102 | -4,143,392 | |||||
| Other movements | 0 | |||||
| -25,426 | -25,426 |
| -53,912,524 | -4,879,702 | -5,890,831 | -5,890,831 | ||
|---|---|---|---|---|---|
| -64,683,057 | -3,250,028 | -67,933,085 |
| 512,972 | -40,081 | -91,838 | -91,838 | ||
|---|---|---|---|---|---|
| 381,053 | 515,306 | 896,359 |
| -53,399,552 | -4,919,783 | 0 | 0 | -5,982,669 | -5,982,669 |
|---|---|---|---|---|---|
| -64,302,004 | -2,734,722 | -67,036,726 |
| Assets | Liabilities | |
|---|---|---|
| Adjustment for non-financial risk | 635,238 | 323,386 |
| Contractual service margin | 52,261 | -8,258 |
| Total reinsurance contracts not measured using the PAA | - | -159,873 |
| Total reinsurance contracts | -888,056 | - |
| Contracts under the fair value approach | -888,056 | -159,873 |
| Other contracts | -200,557 | 155,255 |
| Total contractual service margin | -200,557 | 155,255 |
| 958,624 | 44,003 | -159,873 | -888,056 | -1,047,929 | -45,302 | -45,302 | |
|---|---|---|---|---|---|---|---|
| 21,330 | -3,703 | -17,627 | 0 | -17,627 | 0 | 0 |
|---|---|---|---|---|---|---|
| 3,339 | -3,236 | -102 | - | -102 | 1 | 1 |
|---|---|---|---|---|---|---|
| 17,991 | -467 | -17,525 | - | -17,525 | -1 | -1 |
|---|---|---|---|---|---|---|
| -1,110 | -4,148 | 128,089 | 0 | 128,089 | 122,831 | 122,831 |
|---|---|---|---|---|---|---|
| - | - | 128,089 | - | 128,089 | 128,089 | 128,089 |
|---|---|---|---|---|---|---|
| - | -4,148 | - | - | - | -4,148 | -4,148 |
|---|---|---|---|---|---|---|
| -1,110 | -1,110 | -1,110 | ||||
|---|---|---|---|---|---|---|
| -110,000 | 0 | 0 | 0 | 0 | -110,000 | -110,000 |
|---|---|---|---|---|---|---|
| -110,000 | -110,000 | -110,000 | ||||
|---|---|---|---|---|---|---|
| -89,780 | -7,851 | 110,462 | 0 | 110,462 | 12,831 | 12,831 |
|---|---|---|---|---|---|---|
| 71,043 | 4,050 | 2,001 | 2,001 | 77,094 | 77,094 | |
|---|---|---|---|---|---|---|
| 0 | 0 | |||||
|---|---|---|---|---|---|---|
| 0 | 0 | |||||
|---|---|---|---|---|---|---|
| -2 | -1 | -1 | -1 | -4 | -4 | |
|---|---|---|---|---|---|---|
| -18,739 | -3,802 | 112,462 | 0 | 112,462 | 89,921 | 89,921 |
|---|---|---|---|---|---|---|
| -268,815 | -268,815 | -268,815 | ||||
|---|---|---|---|---|---|---|
| 139,637 | - | - | - | - | 139,637 | 139,637 |
|---|---|---|---|---|---|---|
| - | - | - | - | - | 0 | 0 |
|---|---|---|---|---|---|---|
| -129,178 | 0 | 0 | 0 | 0 | -129,178 | -129,178 |
|---|---|---|---|---|---|---|
| - | - | - | - | - | 0 | 0 |
|---|---|---|---|---|---|---|
| 489,865 | 46,922 | 109,137 | -888,056 | -778,919 | -242,132 | -242,132 |
|---|---|---|---|---|---|---|
| 320,842 | -6,721 | -156,548 | 0 | -156,548 | 157,573 | 157,573 |
|---|---|---|---|---|---|---|
| 810,707 | 40,201 | -47,411 | -888,056 | -935,467 | -84,559 | -84,559 |
|---|---|---|---|---|---|---|
| 912,114 | - | - | -979,853 | -979,853 | -67,739 | -67,739 |
|---|---|---|---|---|---|---|
| 283,683 | -24,550 | -5,551 | - | -5,551 | 253,582 | 253,582 |
|---|---|---|---|---|---|---|
| 1,195,797 | -24,550 | -5,551 | -979,853 |
|---|---|---|---|
| Changes that relate to future services | 121,592 | 79,698 | -175,826 | -25,464 | -201,290 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| Changes in estimates that adjust the contractual service margin | 121,592 | 79,696 | -175,826 | -25,464 | -201,290 | -2 | -2 |
| Effects of contracts initially recognised in the period | - | 2 | - | - | 0 | 2 | 2 |
| Changes that relate to current service | 18,592 | 3,087 | 21,479 | 114,417 | 135,896 | 157,575 | 157,575 |
| Amount of the contractual service margin recognised in profit or loss | - | - | 21,479 | 114,417 | 135,896 | 135,896 | 135,896 |
| Change in the risk adjustment for non-financial risk that does not relate to future service or past service | - | 3,087 | - | - | 0 | 3,087 | 3,087 |
| Experience adjustment | 18,592 | - | - | - | 0 | 18,592 | 18,592 |
| Changes that relate to past service | -27,999 | 0 | 0 | 0 | 0 | -27,999 | -27,999 |
| Changes in fulfilment cash flows relating to incurred claims | -27,999 | - | - | - | 0 | -27,999 | -27,999 |
| Result from reinsurance contracts held | 112,185 | 82,785 | -154,347 | 88,953 |
| -65,394 | 129,576 | 129,576 |
|---|---|---|
| -192,202 | -14,232 | 26 |
| 2,842 | 2,868 | -203,566 |
| -203,566 |
| - | - | - |
|---|---|---|
| 2 | 2 | 2 |
| 2 |
| -3 | 0 | -1 |
|---|---|---|
| 0 | -1 | -4 |
| -4 |
| -80,020 | 68,553 | -154,322 |
|---|---|---|
| 91,797 | -62,525 | -73,992 |
| -73,992 |
| -304,586 | - | - |
|---|---|---|
| - | 0 | -304,586 |
| -304,586 |
| 147,433 | - | - |
|---|---|---|
| - | 0 | 147,433 |
| 147,433 |
| -157,153 | 0 | 0 |
|---|---|---|
| 0 | 0 | -157,153 |
| -157,153 |
| 635,238 | 52,261 | - |
|---|---|---|
| -888,056 | -888,056 | -200,557 |
| -200,557 |
| 323,386 | -8,258 | -159,873 |
|---|---|---|
| - | -159,873 | 155,255 |
| 155,255 |
| 958,624 | 44,003 | -159,873 |
|---|---|---|
| -888,056 |
| EUR | |
|---|---|
| Present value of future cash flows | -1,047,929 |
| Adjustment for non-financial risk | -45,302 |
| Contractual service margin | -45,302 |
| Total reinsurance contracts not measured using the PAA | 348 |
| Total reinsurance contracts | -51,254,588 |
| Other contracts | -4,449,816 |
| Total contractual service margin | -5,520,510 |
| Assets | -61,224,914 |
| Liabilities | 451,963 |
| -40,081 | |
| -91,838 | |
| 320,044 | |
| Opening balance – net assets/liabilities | -50,802,625 |
| -4,489,897 | |
| -5,612,348 | |
| -60,904,871 |
| Amount | 18,029,294 |
|---|---|
| -3,869,768 | |
| -14,066,786 | |
| 92,740 |
| Amount | 3,873,154 |
|---|---|
| 320,134 | |
| -4,100,549 | |
| 92,740 |
| Amount | 14,156,140 |
|---|---|
| -4,189,902 | |
| -9,966,238 | |
| 0 |
| Amount | -63,349,903 |
|---|---|
| -58,786 | |
| 15,592,785 | |
| -47,815,904 |
| - | |
|---|---|
| 15,592,785 |
| - | |
|---|---|
| -58,786 |
-58,786
| 6,148,125 | -2,094,108 | 0 | 0 | 4,054,018 | 4,054,018 |
|---|---|---|---|---|---|
| 6,148,125 | -2,094,108 | - | 0 | 4,054,018 | 4,054,018 |
|---|---|---|---|---|---|
| -39,172,483 | -6,022,662 | 1,525,999 | 1,525,999 | -43,669,147 | -43,669,147 |
|---|---|---|---|---|---|
| -1,573,989 | -304,691 | -318,947 | -318,947 | -2,197,627 | -2,197,627 |
|---|---|---|---|---|---|
| 1,617,714 | - | - | 0 | 1,617,714 | 1,617,714 |
|---|---|---|---|---|---|
| 36,259 | 6,546 | 7,492 | 7,492 | 50,297 | 50,297 |
|---|---|---|---|---|---|
| -39,092,500 | -6,320,807 | 1,214,544 | 1,214,544 | -44,198,763 | -44,198,763 |
|---|---|---|---|---|---|
| -30,846,126 | - | - | 0 | -30,846,126 | -30,846,126 |
|---|---|---|---|---|---|
| 40,633,988 | - | - | 0 | 40,633,988 | 40,633,988 |
|---|---|---|---|---|---|
| - | - | - | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 9,787,861 | 0 |
|---|---|
| Assets | -81,217,678 | -10,728,485 | -3,816,458 | -3,816,458 | -95,762,621 | -95,762,621 |
|---|---|---|---|---|---|---|
| Liabilities | 1,110,414 | -82,220 | -581,346 | -581,346 | 446,848 | 446,848 |
| Closing balance – net assets/liabilities | -80,107,264 | -10,810,704 | -4,397,804 | -4,397,804 | -95,315,773 | -95,315,773 |
| Present value of future cash flows | -47,104,536 |
|---|---|
| Adjustment for non-financial risk | -4,836,710 |
| Contractual service margin | -4,127,250 |
| Total reinsurance contracts not measured using the PAA | -4,127,250 |
| Total reinsurance contracts | -56,068,497 |
| Other contracts | -56,068,497 |
| Total contractual service margin | -56,068,497 |
903,860-87,733-49,581-49,581766,545766,545
| -46,200,677 | -4,924,443 | -4,176,831 | -4,176,831 | -55,301,952 | -55,301,952 |
|---|---|---|---|---|---|
| 18,108,161 | -4,086,131 | -17,440,538 | -17,440,538 | -3,418,508 | -3,418,508 |
|---|---|---|---|---|---|
| 4,947,211 | 410,609 | -8,776,329 | -8,776,329 | -3,418,508 | -3,418,508 |
|---|---|---|---|---|---|
| 13,160,950 | -4,496,740 | -8,664,210 | -8,664,210 |
|---|---|---|---|
| -25,147,040 | 2,088,829 | 15,980,161 | 15,980,161 | -7,078,050 | -7,078,050 | |
|---|---|---|---|---|---|---|
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | - | - | 15,980,161 | 15,980,161 | 15,980,161 | 15,980,161 |
| Change in the risk adjustment for non-financial risk that does not relate to future service or past service | - | 2,088,829 | - | 0 | 2,088,829 | 2,088,829 |
| Experience adjustment | -25,147,040 | - | - | 0 | -25,147,040 | -25,147,040 |
| -1,342,777 | 1,971,752 | 0 | 0 | 628,975 | 628,975 | |
|---|---|---|---|---|---|---|
| Changes in fulfilment cash flows relating to incurred claims | -1,342,777 | 1,971,752 | - | 0 | 628,975 | 628,975 |
| -8,381,656 | -25,549 | -1,460,378 | -1,460,378 | -9,867,583 | -9,867,583 |
|---|---|---|---|---|---|
| 3,963,752 | 461,920 | 23,010 | 23,010 | 4,448,681 | 4,448,681 |
|---|---|---|---|---|---|
| 478,410 | - | - | 0 | 478,410 | 478,410 |
|---|---|---|---|---|---|
| -243,929 | -1,824 | 1,851 | 1,851 | -243,902 | -243,902 |
|---|---|---|---|---|---|
| -4,183,423 | 434,546 | -1,435,517 | -1,435,517 | -5,184,394 | -5,184,394 |
|---|---|---|---|---|---|
| Premiums received for insurance contracts issued | -27,792,365 |
|---|---|
| EUR | Contracts issued | Profitable | Onerous |
|---|---|---|---|
| Insurance contracts | Claims incurred and other insurance service expenses | 58,429,069 | 9,031,430 |
| Insurance acquisition cash flows | 9,890,577 | 825,696 | |
| Present value of expected cash outflows | 68,319,646 | 9,857,126 | |
| Present value of expected cash inflows | -99,784,470 | -10,806,141 | |
| Adjustment for non-financial risk | 9,201,628 | 1,798,567 | |
| Contractual service margin | 22,263,196 | ||
| Total at initial recognition | 0 | 849,552 |
| Contracts issued | Contracts recognised without loss recovery | Contracts recognised with loss recovery | Reinsurance contracts |
|---|---|---|---|
| Premiums | -16,354,885 | -463,225 | |
| Present value of expected cash outflows | -16,354,885 | -463,225 | |
| Present value of expected cash inflows | 32,733,889 | 933,147 | |
| Adjustment for non-financial risk |
| EUR | |
|---|---|
| Contracts issued | |
| Profitable | -4,640,800 |
| Onerous | -140,570 |
| Insurance contracts | |
| Claims incurred and other insurance service expenses | 46,751,437 |
| Insurance acquisition cash flows | 7,857,908 |
| Present value of expected cash outflows | 54,609,345 |
| Present value of expected cash inflows | -75,507,081 |
| Adjustment for non-financial risk | 6,740,087 |
| Contractual service margin | 14,157,649 |
| Total at initial recognition | 0 |
| -116,259 |
| EUR | |
|---|---|
| Contracts issued | |
| Contracts recognised without loss recovery | -17,436,355 |
| Contracts recognised with loss recovery | -383,448 |
| Reinsurance contracts | |
| Premiums | |
| Present value of expected cash outflows | -17,436,355 |
| Present value of expected cash inflows | 32,696,651 |
| Adjustment for non-financial risk | -4,980,392 |
| Contractual service margin | -10,279,904 |
| Loss component | |
| Total at initial recognition | 0 |
| -12,563,406 | Adjustment for non-financial risk | 3,331,512 | 171,495 | Contractual service margin | 24,416,313 | - | Total at initial recognition | 0 | 516,895 | EUR |
|---|---|---|---|---|---|---|---|---|---|---|
| Contracts issued | Contracts recognised without loss recovery | Reinsurance contracts | Premiums | -4,472 | Present value of expected cash outflows | -4,472 | Present value of expected cash inflows | 22,463 | Adjustment for non-financial risk | -466 |
| Contractual service margin | -17,525 | Loss component | - | Total at initial recognition | 0 | 601,714 | Expected cash flows in this disclosure include only contractually determined periodic premiums, single premiums and additional payments received in the year of contract recognition. | |||
| Incurred claims and other insurance service expenses include only outflows for surrender arising from contractually determined periodic premiums and lump-sum and additional payments received in the year of recognition. | The expected cash inflows and expected cash outflows presented in this note do not include all expected cash inflows. Higher inflows correspond to higher outflows, and therefore the net effect is negligible. |
| 352 | Sava Re as at 31 December 2023 | EUR | ||||
|---|---|---|---|---|---|---|
| Contracts issued | Profitable | Onerous | Insurance contracts | Claims incurred and other insurance service expenses | 95,883,706 | 8,805,356 |
| Insurance acquisition cash flows | 8,092,629 | 754,107 | Present value of expected cash outflows | 103,976,335 | 9,559,462 | |
| Present value of expected cash inflows | -146,247,516 | -10,435,385 | Adjustment for non-financial risk | 14,409,067 | 1,747,244 | Contractual service margin |
27,862,113
0
871,322 EUR
Contracts recognised without loss recovery
-14,671,209
-14,671,209
28,827,349
-4,189,902
-9,966,238
0
EUR
Claims incurred and other insurance service expenses
| 79,965,238 | 23,880,015 | |
|---|---|---|
| Insurance acquisition cash flows | 6,030,085 | 1,778,463 |
| Present value of expected cash outflows | 85,995,322 | 25,658,478 |
| Present value of expected cash inflows | -115,427,349 | -27,202,492 |
| Adjustment for non-financial risk | 11,263,240 | 4,971,965 |
| Contractual service margin | 18,168,787 | - |
| Total at initial recognition | 0 | 3,427,951 |
-15,636,975
-15,636,975
28,797,925
-4,496,740
-8,664,210
0
| < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | Total |
|---|---|---|---|---|---|---|---|
| 7,202,399 | 1,101,693 | 769,903 | 589,566 | 470,039 | 1,245,255 | 376,679 | 11,755,534 |
| < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | Total | |
|---|---|---|---|---|---|---|---|---|
| Insurance contracts | 6,463,174 | 1,085,274 | 723,750 | 523,157 | 384,961 | 1,004,938 | 340,062 | 10,525,316 |
| Reinsurance contracts | -5,573,662 | -366,477 | -23,004 | -15,413 | -4,006 | -105 | -5,982,667 | |
| Total | 889,512 | 718,797 | 700,746 | 507,744 | 380,955 | 1,004,833 | 340,062 | 4,542,649 |
| < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | Total | |
|---|---|---|---|---|---|---|---|---|
| Insurance contracts | 16,976,214 | 14,992,610 | 13,302,312 | 11,824,815 | 10,518,420 | 38,006,640 | 37,930,942 | 143,551,953 |
| Reinsurance contracts | -111,396 | -100,800 | -91,077 | -80,639 | -71,402 | -255,648 | -224,502 | -935,464 |
| Total | 16,864,818 | 14,891,810 | 13,211,235 |
| < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | Total | |
|---|---|---|---|---|---|---|---|---|
| Insurance contracts | 15,012,296 | 13,253,567 | 11,792,672 | 10,524,042 | 9,380,061 | 33,481,826 | 32,426,305 | 125,870,769 |
| Reinsurance contracts | -117,519 | -109,273 | -97,803 | -89,063 | -79,069 | -286,627 | -268,574 | -1,047,928 |
| Total | 14,894,777 | 13,144,294 | 11,694,869 | 10,434,979 | 9,300,992 | 33,195,199 | 32,157,731 | 124,822,841 |
| < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | Total | |
|---|---|---|---|---|---|---|---|---|
| Insurance contracts | 9,168,508 | 197,371 | 107,473 | 10,836 | 8,628 | 23,697 | 4,695 | 9,521,208 |
| Reinsurance contracts | -4,397,804 | -4,397,804 | ||||||
| Total | 4,770,704 | 197,371 | 107,473 | 10,836 | 8,628 | 23,697 | 4,695 | 5,123,404 |
| < 1 year | 1–2 years | 2–3 years | 3–4 years | 4–5 years | 5–10 years | > 10 years | Total | |
|---|---|---|---|---|---|---|---|---|
| Insurance contracts |
| Total | Insurance contracts | Reinsurance contracts |
|---|---|---|
| 7,871,130 | 235,518 | -5,271,105 |
| 137,057 | 120,530 | -341,244 |
| 8,276 | 23,160 | - |
| 6,093 | 8,401,764 | - |
| Total | 2,600,025 | -5,612,348 |
| -105,725 | 137,057 | - |
| 120,530 | 8,276 | - |
| 23,160 | 6,093 | - |
| 2,789,415 | 354 | - |
| Non-life | Life | Total |
|---|---|---|
| Changes in the fair value of the portfolio of insurance contracts with direct participation features | - | -58,425,631 |
| Accrued interest at locked-in interest rate | -8,379,535 | -13,307,909 |
| Changes in interest rates and other financial assumptions | -12,551,570 | -30,130,447 |
| Foreign exchange gains/losses | 6,729,958 | 6,759,404 |
| Foreign currency translation differences | 30,814 | 40,033 |
| Total net finance income or expenses from insurance contracts | -14,170,333 | -95,064,550 |
| Accrued interest at locked-in interest rate | 1,094,834 | -186 |
|---|---|---|
| Changes in interest rates and other financial assumptions | 1,455,775 | -76,905 |
| Foreign exchange gains/losses | -50,670 | - |
| Foreign currency translation differences | -3,917 | 3 |
| Net finance income or expenses from reinsurance contracts | 2,496,022 | 2,418,934 |
| Total net finance income or expenses from reinsurance contracts | -1,652,765 | -1,652,765 | ||
|---|---|---|---|---|
| Total | -13,327,076 | -80,971,305 | -94,298,381 | |
| Amounts recognised in profit or loss | -2,231,823 | -60,381,331 | -62,613,154 | |
| Amounts recognised in other comprehensive income | -11,095,253 | -20,589,972 | -31,685,225 | |
| Finance income or expenses from insurance contracts | Net finance income or expenses from insurance contracts | -14,170,332 | -80,894,215 | -95,064,547 |
| Recognised in profit or loss | -1,619,434 | -60,381,145 | -62,000,579 | |
| Recognised in other comprehensive income (excluding the effect of exchange rate differences) | -12,440,453 | -20,520,975 | -32,961,428 | |
| Effects of exchange rate differences in other comprehensive income | -141,259 | -1,314 | -142,573 | |
| Foreign currency translation differences | 30,814 | 9,219 | 40,033 | |
| Net finance income or expenses from reinsurance contracts | 843,256 | -77,088 | 766,168 | |
| Recognised in profit or loss | -612,389 | -186 | -612,575 | |
| Recognised in other comprehensive income (excluding the effect of exchange rate differences) | 1,459,189 | -76,905 | 1,382,284 | |
| Effects of exchange rate differences in other comprehensive income | 373 | 373 | ||
| Foreign currency translation differences | -3,917 | 3 | -3,914 | |
| Changes in the fair value of the portfolio of insurance contracts with direct participation features | 67,796,261 | 67,796,261 | ||
| Accrued interest at locked-in interest rate | -5,818,135 | 5,475,482 | -342,653 | |
| Changes in interest rates and other financial assumptions | 32,087,278 | 60,308,260 | 92,395,538 | |
| Foreign exchange gains/losses | 414,549 | -2,204 |
412,345-9,413-7,214-16,627
| 26,674,279 | 133,570,585 | 160,244,864 |
|---|---|---|
| Accrued interest at locked-in interest rate | 558,687 | 880 | 559,567 |
|---|---|---|---|
| Changes in interest rates and other financial assumptions | -5,282,632 | 202,685 | -5,079,947 |
| Foreign exchange gains/losses | 238,612 | -2 | 238,610 |
| Foreign currency translation differences | 2,115 | 4 | 2,119 |
| Net finance income or expenses from reinsurance contracts | -4,483,218 | 203,567 | -4,279,651 |
| Finance effects from credit risk | -429,681 | -429,681 | |
| Total net finance income or expenses from reinsurance contracts | -4,912,899 | 203,567 | -4,709,332 |
| 21,761,380 | 133,774,152 | 155,535,532 |
|---|---|---|
| Amounts recognised in profit or loss | -5,052,118 | 57,467,142 | 52,415,024 |
|---|---|---|---|
| Amounts recognised in other comprehensive income | 26,813,504 | 76,307,010 | 103,120,514 |
| Net finance income or expenses from insurance contracts | 26,674,278 | 133,570,585 | 160,244,863 |
|---|---|---|---|
| Recognised in profit or loss | -5,421,905 | 57,466,264 | 52,044,359 |
| Recognised in other comprehensive income (excluding the effect of exchange rate differences) | 32,273,622 | 76,108,852 | 108,382,474 |
| Effects of exchange rate differences in other comprehensive income | -168,026 | 2,683 | -165,343 |
| Foreign currency translation differences | -9,413 | -7,214 | -16,627 |
| Net finance income or expenses from reinsurance contracts | -4,912,892 | 203,567 |
| -4,709,325 | Recognised in profit or loss | ||
|---|---|---|---|
| 369,787 | 878 | 370,665 | |
| -5,290,084 | Recognised in other comprehensive income (excluding the effect of exchange rate differences) | ||
| 202,685 | -5,087,399 | ||
| Effects of exchange rate differences in other comprehensive income | 5,290 | - | 5,290 |
| Foreign currency translation differences | 2,115 | 4 | 2,119 |
| BBA + PAA | C0020 | C0040 |
|---|---|---|
| Net finance income or expenses from insurance contracts | Accrued interest at locked-in interest rate | -6,091,760 |
| Changes in interest rates and other financial assumptions | -6,255,974 | |
| Foreign exchange gains/losses | 6,828,024 | |
| Total net finance income or expenses from insurance contracts | -5,519,710 | |
| Net finance income or expenses from reinsurance contracts | Accrued interest at locked-in interest rate | 893,761 |
| Changes in interest rates and other financial assumptions | 1,304,240 | |
| Foreign exchange gains/losses | -50,670 | |
| Net finance income or expenses from reinsurance contracts | 2,147,330 | |
| Finance effects from credit risk | -1,617,714 | |
| Total net finance income or expenses from reinsurance contracts | 529,617 | |
| Total | -4,990,094 |
| Amounts recognised in profit or loss | -38,359 | |
|---|---|---|
| Amounts recognised in other comprehensive income | -4,951,735 | |
| Finance income or expenses from insurance contracts | Net finance income or expenses from insurance contracts | -5,519,710 |
| Recognised in profit or loss | 736,264 | |
| Recognised in other comprehensive income (excluding the effect of exchange rate differences) | -6,110,581 | |
| Effects of exchange rate differences in other comprehensive income |
| Net finance income or expenses from reinsurance contracts | -145,394 |
|---|---|
| Recognised in profit or loss | 529,617 |
| Recognised in other comprehensive income (excluding the effect of exchange rate differences) | -774,623 |
| Effects of exchange rate differences in other comprehensive income | 1,303,867 |
| Accrued interest at locked-in interest rate | -4,904,187 |
| Changes in interest rates and other financial assumptions | 16,477,038 |
| Foreign exchange gains/losses | 155,170 |
| Total net finance income or expenses from insurance contracts | 11,728,022 |
| Net finance income or expenses from reinsurance contracts | 506,046 |
| Changes in interest rates and other financial assumptions | -4,949,437 |
| Foreign exchange gains/losses | 238,612 |
| Net finance income or expenses from reinsurance contracts | -4,204,779 |
| Finance effects from credit risk | -478,410 |
| Total net finance income or expenses from reinsurance contracts | -4,683,189 |
| Total | 7,044,833 |
| Recognised in | |
| Amounts recognised in profit or loss | -4,482,768 |
| Amounts recognised in other comprehensive income | 11,527,601 |
| Finance income or expenses from insurance contracts | |
| Net finance income or expenses from insurance contracts | 11,728,022 |
| Recognised in profit or loss | -4,749,017 |
| Recognised in other comprehensive income (excluding the effect of exchange rate differences) | 16,634,827 |
| Effects of exchange rate differences in other comprehensive income | -157,789 |
| Net finance income or expenses from reinsurance contracts | -4,683,189 |
| EUR | 31 December 2023 | 31 December 2022 | ||||
|---|---|---|---|---|---|---|
| Gross amount | Allowance | Receivables | Gross amount | Allowance | Receivables | |
| Current tax assets | 444,616 | 0 | 444,616 | 3,412,855 | 0 | 3,412,855 |
| Other short-term receivables arising out of insurance business (outside the scope of IFRS 17) | 4,533,434 | -1,148,176 | 3,385,258 | 4,466,344 | -2,170,209 | 2,296,135 |
| Receivables from financing | 728,130 | -166,900 | 561,230 | 2,203,462 | -163,322 | 2,040,140 |
| Trade and other receivables | 12,422,002 | -2,097,132 | 10,324,870 | 10,777,938 | -2,831,240 | 7,946,698 |
| Total | 18,128,182 | -3,412,208 | 14,715,974 | 20,860,599 | -5,164,771 | 15,695,828 |
| EUR | 31 December 2023 | 31 December 2022 | ||||
|---|---|---|---|---|---|---|
| Gross amount | Allowance | Receivables | Gross amount | Allowance | Receivables | |
| Current tax assets | 0 | 0 | 0 | 49,594 | 0 | 49,594 |
| Receivables from financing | 34,478 | 0 | 34,478 | 15,889 |
| 31 December 2023 | 31 December 2022 | |
|---|---|---|
| Trade and other receivables | 504,923 | -341,035 |
| Total | 539,401 | -341,035 |
| Receivables for advances for intangible assets | 251,931 | 73,725 |
| Short-term trade receivables | 7,298,183 | 5,573,273 |
| Short-term receivables due from government and other institutions | 350,798 | 471,883 |
| Short-term receivables due from employees | 51,503 | 45,641 |
| Receivables arising out of advances for property, plant and equipment | 90,492 | 190 |
| Other current receivables | 2,281,963 | 1,781,986 |
| Trade and other receivables | 10,324,870 | 7,946,698 |
| Not past due | Past due up to 180 days | Past due from 180 days to 1 year | Past due over 1 year | Total | ||
|---|---|---|---|---|---|---|
| 31 December 2023 | Current tax assets | 437,109 | 0 | 0 | 7,507 | 444,616 |
| Other short-term receivables arising out of insurance business (outside the scope of IFRS 17) | 1,551,247 | 1,774,850 |
| Receivables from financing | Not past due | Past due upto 180 days | Past due from 180 days to 1 year | Past due over 1 year | Total |
|---|---|---|---|---|---|
| 31 December 2022 | 2,887 | 56,274 | 3,385,258 | 368,526 | 10,009,539 |
| Trade and other receivables | 286,704 | 8,962 | 19,665 | 10,324,870 | |
| Total | 11,929,312 | 2,236,247 | 11,849 | 93,950 | 14,271,358 |
| 12,366,421 | 2,236,247 | 11,849 | 101,457 | 14,715,974 |
| Receivables from financing | Not past due | Total |
|---|---|---|
| 31 December 2023 | 34,478 | 34,478 |
| Trade and other receivables | 163,888 | 163,888 |
| Trade and other receivables | 198,366 | 198,366 |
| Total | 198,366 |
| Total | 31 December 2022 |
|---|---|
| Current tax assets | 49,594 |
| Receivables from financing | 15,889 |
| Trade and other receivables | 197,339 |
| Trade and other receivables | 213,228 |
| Total | 262,822 |
| Additions | Reversals | Write-off | Exchange differences | 31 December 2023 | |
|---|---|---|---|---|---|
| Current tax assets | 0 | 0 | 0 | 0 | |
| Other short-term receivables arising out of insurance business (outside the scope of IFRS 17) | -2,170,209 | -51,960 | 1,066,400 | 7,419 | -1,148,176 |
| Receivables from financing | -163,322 | -3,608 | 0 | 0 | -166,900 |
| Trade and other receivables | -2,831,240 | -40,828 | 616,826 | 156,912 | -2,097,132 |
| Trade and other receivables | -5,164,771 | -96,396 | 1,683,226 | 164,331 | -3,412,208 |
| Total | -5,164,771 | -96,396 | 1,683,226 | 164,331 | -3,412,208 |
| Additions | Reversals | Write-off | Exchange differences | 31 December 2022 |
|---|---|---|---|---|
| Current tax assets | 0 | 0 | 0 | 0 |
| -2,198,522 | -78,421 | 103,752 | 4,298 | -1,316 | -2,170,209 |
|---|---|---|---|---|---|
| -163,501 | 0 | 7 | 0 | 172 | -163,322 |
|---|---|---|---|---|---|
| -2,855,983 | -92,056 | 102,021 | 16,451 | -1,673 | -2,831,240 |
|---|---|---|---|---|---|
| -5,218,006 | -170,477 | 205,780 | 20,749 | -2,817 | -5,164,771 |
|---|---|---|---|---|---|
| -5,218,006 | -170,477 | 205,780 | 20,749 | -2,817 | -5,164,771 |
|---|---|---|---|---|---|
| Trade and other receivables | -341,035 | -341,035 |
|---|---|---|
| -341,035 | -341,035 |
|---|---|
| Trade and other receivables | -341,035 | -341,035 |
|---|---|---|
| -341,035 | -341,035 |
|---|---|
| Inventories | 147,794 | 155,299 | - | - |
|---|---|---|---|---|
| Other short-term deferred costs (expenses) and accrued revenue | 3,894,812 | 3,869,984 | 715,114 | 699,783 |
| 4,042,606 | 4,025,283 | 715,114 | 699,783 |
|---|---|---|---|
The Group’s inventories consist of strict record forms and are not subject to pledging. Other current deferred costs (expenses) and accrued revenue consist of prepaid costs for services (maintenance, development, user fees and electronic media costs).
| Sava Insurance Group | EUR | 31 December 2023 | 31 December 2022 | Sava Re | EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|---|---|---|---|---|
| Cash in hand | 28,611 | 24,051 | - | - | |||
| Cash in bank accounts | 29,138,100 | 56,250,164 | 9,110,049 | 15,846,029 | |||
| Call and overnight deposits, and deposits of up to 3 months | 21,393,253 | 36,949,416 | 3,150,000 | 8,080,000 | |||
| Total | 50,559,964 | 93,223,631 | 12,260,049 | 23,926,030 |
The decrease in cash and cash equivalents is mainly due to the reinvestment in higher yielding asset classes.
| Sava Insurance Group | EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|---|
| Balance as at 1 January | 991,803 | 770,544 | |
| Additions | 0 | 352,271 | |
| Reclassification | -70,776 | 428,674 | |
| Disposal | -616,927 | -559,686 | |
| Impairment | -44,451 | 0 | |
| Balance as at 31 December | 259,649 | 991,803 |
Office premises partially disposed of in 2023 and 2022 were reclassified to non-current assets held for sale in 2022.
As at 31 December 2023, the parent’s share capital was divided into 17,219,662 shares (the same as at 31 December 2022). All shares are ordinary registered shares of the same class. Their holders are entitled to participate in the Company’s control and profits (dividends). Each share carries one vote in general meeting and entitles the bearer to a proportionate share of the dividend distribution.
Shares are recorded in the Central Securities Clearing Corporation (KDD) under the POSR ticker symbol.
As at year-end 2023, the Company’s shareholders’ register listed 4,376 shareholders (31 December 2022: 4,316 shareholders). The Company’s shares are listed in the prime market of the Ljubljana Stock Exchange.
| Movement in capital reserves | Sava Insurance Group | Sava Re | EUR | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|---|---|---|
| As at 1 January | 42,702,320 | 42,702,320 | 54,239,757 | 54,239,757 | |||
| As at 31 December | 42,702,320 | 42,702,320 | 54,239,757 | 54,239,757 |
Sava Re
31 December 2022
EUR
| 31 December 2022 | 31 December 2023 | |
|---|---|---|
| Legal reserves | 12,176,144 | 12,150,797 |
| Capital redemption reserve | 24,938,709 | 24,938,709 |
| Credit risk equalisation reserve | - | - |
| Catastrophe equalisation reserve | 1,225,068 | 11,225,068 |
| Other profit reserves | 243,353,745 | 208,631,017 |
| Total | 281,693,666 | 256,945,591 |
In 2023, the Company reallocated EUR 10 million from the catastrophe equalisation reserve to other profit reserves. Profit reserves are retained from previous years’ profits, primarily to offset potential future losses. In accordance with ZGD-1, the management board, when adopting the 2023 annual report, allocated half of the net profit of EUR 24.7 million to “other profit reserves” (2022: EUR 27.9 million).
As at 31 December 2023, the Company held a total of 1,721,966 own shares (2022: 1,721,966) traded on the Ljubljana Stock Exchange under the ticker symbol “POSR” (accounting for 10% less one share of the issued shares) for a value of EUR 24,938,709 (2022: EUR 24,938,709). Treasury shares are a contra account of equity. Treasury shares are not pledged.
| Sava Insurance Group | Sava Re | |||
|---|---|---|---|---|
| EUR | 2023 | 2022 | 2023 | 2022 |
| Accumulated other comprehensive income from financial investments | -76,271,988 | -120,775,659 | -11,603,021 | -20,111,066 |
| Accumulated other comprehensive income on insurance contracts | 46,400,360 | 74,431,742 | 2,089,191 | 7,248,755 |
| Accumulated other comprehensive income on reinsurance contracts | -194,443 | -887,877 | -431,371 | -1,586,865 |
| Other reserves | 1,870,419 | 2,093,462 | 178,886 | 152,447 |
| Total | -28,195,652 | -45,138,332 | -9,766,315 | -14,296,729 |
The movement in accumulated other comprehensive income from insurance and reinsurance contracts is described in section 16.6 “Transition to the new standards IFRS 17 and IFRS 9” and in note 16.8.16 “Finance income or expenses from (re)insurance contracts”. Other reserves comprise actuarial gains and losses arising from recognising provisions for retirement benefits. Movements are shown in section 16.8.30 “Other provisions”.
The net consolidated profit for 2023 totalled EUR 64.7 million (2022: EUR 46.9 million). The Company ended the 2023 financial year with a net profit of EUR 49.5 million (2022: EUR 61.4 million).
| Sava Insurance Group | Sava Re | |||
|---|---|---|---|---|
| EUR | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
| Net profit or loss for the period |
| EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Net profit or loss | 64,657,171 | 46,923,441 |
| 49,474,802 | 61,350,951 | |
| Weighted average number of shares outstanding | 15,497,696 | 15,497,696 |
| Earnings or loss per share | 4.16 | 3.01 |
The Company’s earnings per share for the financial year 2023 were EUR 3.19 (2022: EUR 3.96).
| EUR | Sava Insurance Group | Sava Re |
|---|---|---|
| Comprehensive income for the period | 81,804,162 | 1,242,147 |
| 54,005,839 | 50,213,481 | |
| Comprehensive income for the owners of the controlling company | 81,614,473 | 1,023,481 |
| Weighted average number of shares outstanding | 15,497,696 | 15,497,696 |
| Comprehensive income per share | 5.27 | 0.07 |
The Company’s comprehensive income per share for the financial year 2023 was EUR 3.48 (2022: EUR 3.24).
The weighted number of shares takes into account the annual average calculated on the basis of monthly averages of ordinary shares less the number of treasury shares. The weighted average number of shares outstanding in the financial period was 15,497,696 and the same as in 2022. The parent does not have potentially dilutive capital instruments, which is why basic earnings per share equal diluted earnings per share.
The Company’s retained earnings as at 31 December 2023 grew by EUR 8.6 million from 31 December 2022 (2022: increase of EUR 26.4 million).
In 2023, the Company paid out EUR 24,796,314 in dividends (2022: EUR 23,246,544). The distributable profit for 2023 totals EUR 57.5 million (2022: EUR 41.8 million).
| EUR | 2023 | 2022 |
|---|---|---|
| Net profit or loss for the period | 49,474,802.34 | 55,966,871.71 |
| Profit or loss for the year under applicable standards | 49,474,802.34 | 55,966,871.71 |
| Retained earnings | 32,809,208.67 | 13,807,182.07 |
| Carry-forward of the previous year | 16,994,304.32 | 13,807,182.07 |
| Impact of the transition to the new standards | 15,814,904.35 | |
| Additions to other reserves as per resolution of the management and supervisory boards | -24,737,401.17 | -27,983,435.86 |
| Distributable profit to be allocated by the general meeting | 57,546,609.84 | 41,790,617.92 |
| To shareholders | not yet published | 24,796,313.60 |
| To be carried forward to the next year | 0 | 16,994,304.32 |
| Entity | EUR 31 December 2023 | EUR 31 December 2022 |
|---|---|---|
| Sava Osiguruvanje (MKD) | 442,431 | 462,173 |
| Sava Station | 8,742 | 1,670 |
| TBS Team 24 | 138,181 | 68,708 |
| Vita S Holding (MKD) | 261,417 | 0 |
| Total | 850,771 | 532,551 |
In October 2019, SavaRe issued subordinated bonds with a scheduled maturity of 2039, ISIN code XS2063427574 and with an early recall option for 7 November 2029. The total issue size is EUR 75.0 million. Until the early recall option of the bond, the annual interest rate is fixed at 3.75% and the coupon is payable annually. If the issuer does not exercise the early recall option, the annual interest rate after the date of the early recall will be 4.683% over the three-month Euribor, with coupons payable quarterly. The bond is admitted to trading on the regulated market of the Luxembourg Stock Exchange. As at 31 December 2023, the market price of the bond was 77.717% and the market value EUR 58,702,709 (31 December 2022: price 74.499% and market value EUR 56,290,346). The book value of the bond as at 31 December 2023 was EUR 74,987,535 (31 December 2022: EUR 74,924,356). The effective interest rate on the bond issued (calculated from the early recall option) is 3.86%.
| Sava Re | EUR 31 December 2022 | Increase | Decrease | EUR 31 December 2023 |
|---|---|---|---|---|
| Subordinated bond | 74,924,356 | 2,875,679 | -2,812,500 | 74,987,535 |
Sava Insurance Group
| Sava Re | EUR 31 December 2023 | EUR 31 December 2022 | EUR 31 December 2023 | EUR 31 December 2022 | |
| Provision for severance pay upon retirement | 4,660,639 | 4,244,938 | 270,203 | 266,392 | |
| Provision for jubilee benefits | 2,688,742 | 2,648,899 | 149,457 | 126,248 | |
| Other provisions | 724,874 | 1,079,617 | - | - | |
| Total | 8,074,255 | 7,973,454 | 419,660 | 392,640 |
| Sava Insurance Group | Sava Re | EUR | Provision for severance pay upon retirement | Provision for jubilee benefits | Total |
|---|---|---|---|---|---|
| Provision for severance pay upon retirement | - | - | - | - | - |
| Provision for jubilee benefits | - | - | - | - | - |
| Total | - | - | - | - | - |
| Sava Insurance Group | Sava Re | EUR | |
|---|---|---|---|
| Balance as at 31 December 2022 | 4,244,938 | 2,648,899 | 6,893,837 |
| Interest expense (IS) | 135,247 | 85,644 | 220,891 |
| Current service cost (IS) | 327,284 | 269,498 | 596,782 |
| Past service cost (IS) | 62,514 | 22,299 | 84,813 |
| Payout of benefits (-) | -300,920 | -295,900 | -596,820 |
| Actuarial losses (IS) | 7,160 | -41,639 | -34,479 |
| Actuarial losses (SFP) | 184,499 | - | 184,499 |
| -27,064 | - | -27,064 | |
| Additions – acquisition of subsidiary | - | - | 0 |
| Exchange differences | -83 | -59 | -142 |
| Balance as at 31 December 2023 | 4,660,639 | 2,688,742 | 7,349,381 |
| 270,203 | 149,457 | 419,660 |
| Sava Insurance Group | Sava Re | EUR | |
|---|---|---|---|
| Balance as at 31 December 2021 | 4,954,165 | 2,976,448 | 7,930,616 |
| Interest expense (IS137) | 120,050 |
| Current service cost (IS) | 67,432 | 187,482 | -1,730 | -855 | -2,585 | ||
|---|---|---|---|---|---|---|---|
| Past service cost (IS) | 303,743 | 255,154 | 558,897 | 28,266 | 15,495 | 43,761 | |
| Payout of benefits (-) | -171,197 | -260,007 | -431,204 | - | -11,835 | -11,835 | |
| Actuarial losses (IS) | -4,650 | -409,871 | -414,521 | - | -16,726 | -16,726 | |
| Actuarial losses (SFP138) | -960,947 | - | -960,947 | -55,904 | - | -55,904 | |
| Exchange differences | 38 | -124 | -86 | - | - | 0 | |
| Balance as at 31 December 2022 | 4,244,938 | 2,648,899 | 6,893,837 | 266,392 | 126,248 | 392,640 |
The main assumptions used in the calculation of provisions for jubilee benefits and severance pay upon retirement are as follows: The interest rate curves used for discounting are those published by EIOPA for the calculation of capital adequacy. The expected increase in salaries and jubilee benefits is calculated using real growth based on historical data for individual companies (Sava Re: 0.8%) and long-term inflation of 2.5%. The expected early departure rates used vary by age group and are based on the historical departure rates of each company (Sava Re: 3.1% under 35 years, 3.9% between 35 and 45 years, 5.3% over 45 years). Expected mortality is determined on the basis of the population mortality tables of the country of incorporation of each Group company.
Below we provide a sensitivity analysis of the provision for severance pay upon retirement and the provision for jubilee benefits.
| Provision for severance pay upon retirement | Provision for jubilee benefits | Impact on the level of provisions (EUR) | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
|---|---|---|---|---|---|---|
| Decrease in discount rate of 1% | 501,220 | 456,051 | 218,070 | 214,049 | ||
| Increase in discount rate of 1% | -424,964 | -387,196 | -190,105 | -186,735 | ||
| Decrease in real income growth of 0.5% | -222,041 | -196,066 | -85,735 | -85,090 | ||
| Increase in real income growth of 0.5% | 238,993 | - | - | - |
137 Income statement or IS for short.
| Provision for severance pay upon retirement | Provision for jubilee benefits | Impact on the level of provisions (EUR) | 31 December 2023 | 31 December 2022 |
|---|---|---|---|---|
| Decrease in staff turnover of 10% | 210,276 | 90,870 | 89,990 | |
| Increase in staff turnover of 10% | 170,790 | 152,777 | 79,575 | 77,227 |
| Decrease in mortality rate of 10% | -160,718 | -144,684 | -75,777 | -73,859 |
| Increase in mortality rate of 10% | 33,696 | 30,399 | 11,570 | 11,564 |
| -33,359 | -30,099 | -11,480 | -11,469 |
| EUR | 31 December 2022 | Additions | Uses and reversals | Exchange differences | 31 December 2023 |
|---|---|---|---|---|---|
| Other provisions | 1,079,617 | 144,103 | -498,766 | -80 | 724,874 |
| Total | 1,079,617 | 144,103 | -498,766 |
| 31 December 2021 | Additions | Uses and reversals | Exchange differences | 31 December 2022 | |
|---|---|---|---|---|---|
| Other provisions | 982,884 | 407,978 | -310,088 | -1,157 | 1,079,617 |
Other provisions include provisions for the guarantee fund.
| Sava Insurance Group | Sava Re | EUR | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|---|
| Other financial liabilities | 737,085 | 548,576 | - | - |
Other financial liabilities relate to a loan payable to a subsidiary in Serbia with a maturity of up to one year.
| Sava Insurance Group | Sava Re | EUR | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|---|
| Current income tax liabilities | 9,930,830 | 1,554,992 | 6,319,991 | 45,414 |
Current tax liabilities recognised in accordance with tax legislation at the end of the financial year are settled by the Group companies within the statutory period of less than one year.
| Sava Insurance Group | Sava Re | EUR | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|---|
| Other liabilities | 30,896,035 | 23,044,216 | 2,898,366 | 2,266,787 | |
| Short-term provisions (deferred income and accrued expenses) | 12,873,471 | 10,598,356 | 1,951,655 | 1,888,906 | |
| Other liabilities | 43,769,505 | 33,642,572 | 4,850,021 | 4,155,693 |
Other liabilities include liabilities that are settled by the companies within the financial year, so all such liabilities are classified as liabilities with a maturity of up to one year.
Other liabilities and short-term provisions (deferred income and accrued expenses) are unsecured.
| Sava Insurance Group | Sava Re | EUR | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|---|
| Current liabilities due to employees | 4,530,558 | 4,107,379 |
| 31 December 2023 | 31 December 2022 | |
|---|---|---|
| 685,475 | 637,853 | |
| 11,405,144 | 10,376,366 | |
| 0 | 252,356 | |
| Short-term trade liabilities | 14,620,197 | 8,533,190 |
| 1,900,391 | 1,370,173 | |
| Diverse other current liabilities | 340,136 | 27,281 |
| 312,500 | 6,405 | |
| Total | 30,896,035 | 23,044,216 |
| 2,898,365 | 2,266,788 |
Diverse other current liabilities arising from insurance business outside IFRS 17 relate mainly to payables to insurance intermediaries for commissions.
Diverse other current liabilities are liabilities arising from the settlement of financial investments.
| EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Accrued costs and expenses due to Group companies | 87,433 | 3,610 |
| - | - | |
| Accrued costs and expenses due to other companies | 9,448,306 | 8,153,827 |
| 1,569,772 | 1,586,407 | |
| Other accrued costs (expenses) and deferred revenue | 3,337,732 | 2,440,919 |
| 381,884 | 302,499 | |
| Total | 12,873,471 | 10,598,356 |
| 1,951,655 | 1,888,906 |
Short-term provisions include accrued charges for unused vacation and severance payments to employees.
Other accrued costs (expenses) and deferred revenue consist mainly of provisions for employee bonuses and the share of premiums paid into a damage prevention fund under the Montenegrin Insurance Act.
| EUR | 31 December 2022 | Additions | Uses | Exchange differences | 31 December 2023 |
|---|---|---|---|---|---|
| Short-term accrued expenses | 8,157,437 | 33,961,425 | -32,582,797 | -326 | 9,535,739 |
| Other accrued costs (expenses) and deferred revenue | 2,440,920 | 3,039,028 | -2,141,058 | -1,158 | 3,337,732 |
| Total | 10,598,357 | 37,000,453 | -34,723,855 | -1,484 | 12,873,471 |
| Short-term accrued expenses | 7,585,339 | 28,386,811 | -27,790,521 | -23,913 | -279 | 8,157,437 |
|---|---|---|---|---|---|---|
| Other accrued costs (expenses) and deferred revenue | 3,568,468 | 2,589,947 | -3,717,503 | 0 | 8 | 2,440,920 |
| Total | 11,153,807 | 30,976,758 | -31,508,024 | -23,913 | -271 | 10,598,356 |
| Additions | Uses | 31 December 2023 | ||
|---|---|---|---|---|
| Short-term accrued expenses | 1,586,407 | 1,874,080 | -1,890,715 | 1,569,772 |
| Other accrued costs (expenses) and deferred revenue | 302,499 | 79,385 | 0 | 381,884 |
| Total | 1,888,906 | 1,953,465 | -1,890,715 | 1,951,655 |
| Additions | Uses | 31 December 2022 | ||
|---|---|---|---|---|
| Short-term accrued expenses | 1,733,454 | 1,266,332 | -1,413,379 | 1,586,407 |
| Other accrued costs (expenses) and deferred revenue | 251,207 | 51,292 | 0 | 302,499 |
| Total | 1,984,661 | 1,317,624 | -1,413,379 | 1,888,906 |
| Carrying amount | Fair value | Difference between FV and CA | Level 1 | Level 2 | Level 3 | Total fair value |
|---|---|---|---|---|---|---|
| Investments measured at fair value | 1,936,229,467 | 1,746,868,840 | 117,886,785 | 71,473,842 | 1,936,229,467 | 0 |
| Investments measured at fair value through profit or loss | 660,082,422 | 569,956,001 |
| Mandatorily measured at fair value through profit or loss, not held for trading | 660,082,422 | |||||
|---|---|---|---|---|---|---|
| Debt instruments | 19,701,111 | 5,568,931 | 14,132,180 | 0 | 19,701,111 | 0 |
| Equity instruments | 569,153,261 | 564,387,070 | 4,520,399 | 245,792 | 569,153,261 | 0 |
| Investments in infrastructure funds | 57,339,858 | 0 | 0 | 57,339,858 | 57,339,858 | 0 |
| Investments in real-estate funds | 13,888,192 | 0 | 0 | 13,888,192 | 13,888,192 | 0 |
| 1,276,147,045 | 1,176,912,839 | 99,234,206 | 0 | 1,276,147,045 | 0 | |
|---|---|---|---|---|---|---|
| Debt instruments | 1,260,177,155 | 1,160,942,949 | 99,234,206 | 0 | 1,260,177,155 | 0 |
| Equity instruments | 15,969,890 | 15,969,890 | 0 | 0 | 15,969,890 | 0 |
| 76,303,166 | 39,689,221 | 8,640,004 | 26,896,788 | 75,226,013 | -1,077,153 | |
|---|---|---|---|---|---|---|
| Investments measured at amortised cost | 76,303,166 | 39,689,221 | 8,640,004 | 26,896,788 | 75,226,013 | -1,077,153 |
| Debt instruments (bonds) | 49,932,856 | 39,689,221 | 8,640,004 | 0 | 48,329,225 | -1,603,631 |
| Deposits and CDs | 25,616,171 | 0 | 0 | 26,105,652 | 26,105,652 | 489,481 |
754,139
0
0
791,136
791,136
36,997
EUR
31 December 2022
| Carrying amount | Fair value | Difference between FV and CA | Level 1 | Level 2 | Level 3 | Total fair value |
|---|---|---|---|---|---|---|
| Investments measured at fair value | 1,711,703,795 | 1,507,454,812 | 126,429,460 | 77,819,523 | 1,711,703,795 | 0 |
| Investments measured at fair value through profit or loss | 556,301,888 | 464,243,069 | 15,096,866 | 76,961,953 | 556,301,888 | 0 |
| Mandatorily measured at fair value through profit or loss, not held for trading | 556,301,888 | 464,243,069 | 15,096,866 | 76,961,953 | 556,301,888 | 0 |
| Debt instruments | 20,729,025 | 5,590,271 | 8,787,606 | 6,351,148 | 20,729,025 | 0 |
| Equity instruments | 465,219,427 | 458,652,798 | 6,309,260 | 257,369 | 465,219,427 | 0 |
| Investments in infrastructure funds | 53,856,375 | 0 | 0 | 53,856,375 | 53,856,375 | 0 |
| Investments in real-estate funds | 16,497,061 | 0 | 0 | 16,497,061 | 16,497,061 | 0 |
| Investments measured at fair value through other comprehensive income | 1,155,401,907 | 1,043,211,743 | 111,332,594 | 857,570 | 1,155,401,907 | 0 |
| Debt instruments | 1,140,474,230 | 1,028,284,066 | 111,332,594 | 857,570 | 1,140,474,230 | 0 |
| Equity instruments | 14,927,677 | 14,927,677 | 0 | 0 | 14,927,677 | 0 |
| Investments not measured at fair value |
| Investments measured at amortised cost | Carrying amount | Fair value | Difference between FV and CA |
|---|---|---|---|
| Debt instruments (bonds) | 44,385,198 | 35,495,150 | 6,379,072 |
| Deposits and CDs | 18,848,261 | 0 | 19,276,121 |
| Loans granted | 1,194,821 | 0 | 1,249,124 |
| Investments measured at fair value | Carrying amount | Fair value | Difference between FV and CA | Level 1 | Level 2 | Level 3 | Total fair value |
|---|---|---|---|---|---|---|---|
| Investments measured at fair value through profit or loss | 37,286,800 | 5,030,865 | 7,287,059 | 24,968,877 | 37,286,800 | 0 | |
| Mandatorily measured at fair value through profit or loss, not held for trading | 37,286,800 | 5,030,865 | 7,287,059 | 24,968,877 | 37,286,800 | 0 | |
| Debt instruments | 4,320,636 | 0 | 4,320,636 | 0 | 4,320,636 | 0 | |
| Equity instruments | 7,997,287 | 5,030,865 | 2,966,422 | 0 | 7,997,287 | 0 | |
| Investments in infrastructure funds | 21,084,448 | 0 | 0 | 21,084,448 | 21,084,448 | 0 | |
| Investments in real-estate funds | 3,884,428 |
| Carrying amount | Fair value | Difference between FV and CA | Level 1 | Level 2 | Level 3 | Total fair value |
|---|---|---|---|---|---|---|
| 311,285,620 | 285,099,550 | 26,186,070 | 0 | 311,285,620 | 0 |
| 311,285,620 | 285,099,550 | 26,186,070 | 0 | 311,285,620 | 0 |
|---|---|---|---|---|---|
| 5,811,776 | 2,167,835 | 0 | 3,785,768 | 5,953,603 | 141,827 |
|---|---|---|---|---|---|
| 5,811,776 | 2,167,835 | 0 | 3,785,768 | 5,953,603 | 141,827 |
|---|---|---|---|---|---|
| 2,075,525 | 2,167,835 | 0 | 0 | 2,167,835 | 92,311 |
|---|---|---|---|---|---|
| 1,021,347 | 0 | 0 | 1,041,806 | 1,041,806 | 20,458 |
|---|---|---|---|---|---|
| 2,714,904 | 0 | 0 | 2,743,962 | 2,743,962 | 29,058 |
|---|---|---|---|---|---|
| Carrying amount | Fair value | Difference between FV and CA | Level 1 | Level 2 | Level 3 | Total fair value |
|---|---|---|---|---|---|---|
| 320,559,011 | 261,449,355 | 32,265,422 | 26,844,235 | 320,559,012 | 0 |
| 39,718,676 | 5,856,230 | 7,441,495 | 26,420,951 | 39,718,676 | 0 |
|---|---|---|---|---|---|
| 39,718,676 | 5,856,230 | 7,441,495 | 26,420,951 | 39,718,676 | 0 |
|---|---|---|---|---|---|
| Equity instruments | 11,014,588 | 5,856,230 | 5,158,358 | 0 | 11,014,588 | 0 |
|---|---|---|---|---|---|---|
| Investments in infrastructure funds | 18,843,871 | 0 | 0 | 18,843,871 | 18,843,871 | 0 |
| Investments in real-estate funds | 4,584,214 | 0 | 0 | 4,584,214 | 4,584,214 | 0 |
| Investments measured at fair value through other comprehensive income | 280,840,335 | 255,593,125 | 24,823,927 | 423,283 | 280,840,335 | 0 |
| Debt instruments | 280,840,335 | 255,593,125 | 24,823,927 | 423,283 | 280,840,335 | 0 |
| Investments not measured at fair value | 3,871,964 | 2,216,867 | 0 | 1,840,393 | 4,057,260 | 185,296 |
| Investments measured at amortised cost | 3,871,964 | 2,216,867 | 0 | 1,840,393 | 4,057,260 | 185,296 |
| Debt instruments (bonds) | 2,075,272 | 2,216,867 | 0 | 0 | 2,216,867 | 141,595 |
| Loans granted | 1,796,693 | 0 | 0 | 1,840,393 | 1,840,393 | 43,700 |
As at 31 December 2023, a large proportion of the debt securities portfolio is valued at the CBBT bid price, which represents the unadjusted quoted price and thus meets the criteria for a tier 1 classification. Mutual funds and listed equity securities that meet the criteria of an active market, as well as debt securities valued at BVAL bid prices that meet the relevant price quality criteria, are also classified into this level.
As at 31 December 2023, level 1 investments represented 88.8% (31 December 2022: 87%) of the value of financial investments measured at fair value.
Debt securities for which no CBBT bid price exists at the classification date, but a BVAL bid price of lower quality is available, are classified into Level 2. We classify into the same Level investments valued based on an internal model that uses directly and indirectly observable market inputs, such as the risk-free interest rate curve, yield of similar financial instruments, and credit and liquidity risk premiums. Equity securities valued using stock exchange prices that meet the criteria for a non-functioning market are also classified into this Level.
The Group classifies into Level 3 shares measured at cost, loans granted measured at amortised cost and investments in alternative funds, such as real-estate funds, infrastructure funds, private debt funds, private equity funds and the like. There are no market prices available for such investments; therefore, valuation based on available market data is not possible.
The Group classifies into Level 3 its investments in alternative funds, such as real-estate funds, infrastructure funds, private debt funds, private equity funds and similar. Alternative funds are valued by fund managers in the form of fund unit values or as the value of invested assets, being the best approximation of fair value. Assets are valued based on material non-public information on assets invested in funds. The Group has only limited access to input data as used by fund managers, which is why the Group does not carry out own valuations nor is it possible for the Group to run sensitivity analyses.
In order to value fund assets, managers of such funds generally use methods that comply with International Private Equity and Venture Capital Valuation standards, such as discounting of cash flows and the multiples method.
The fair value of the Company’s investment property as at 31 December 2023 was EUR 10,007,145 (2022: EUR 9,997,159), that of the Group at EUR 28,591,968 (2022: 25,680,767). The Company and the Group classify investment property as level 3 assets.
| EUR | Debt instruments | Equity instruments | Investments in infrastructure funds | Investments in real-estate funds |
|---|---|---|---|---|
| 31 December 2023 | 31 December 2023 | 31 December 2023 | 31 December 2023 | |
| Opening balance | 7,208,718 | 257,367 | 53,856,375 | 16,497,061 |
| Exchange differences | 1 | 25 | 2 | -1 |
| Additions | 0 | 0 | 4,230,418 | 0 |
| Disposals | -587,952 | -11,600 | -2,004,341 | 0 |
| Maturity | -1,313,725 | 0 | 0 | 0 |
| Revaluation to fair value | 696,363 | 0 | 1,257,404 | -2,608,868 |
| Reclassification into other levels (from L3 to L2 or L1) | -6,003,405 | 0 | 0 | 0 |
| Closing balance | 0 | 245,792 | 57,339,858 | 13,888,192 |
| Income | 0 | 750 | 2,046,833 | 287,511 |
| Unrealised gains/losses | 23,483 | 0 | 1,567,201 | -2,192,884 |
| EUR | Debt instruments | Equity instruments | Investments in infrastructure funds | Investments in real-estate funds |
|---|---|---|---|---|
| 31 December 2023 | 31 December 2023 | 31 December 2023 | 31 December 2023 | |
| Opening balance | 3,416,149 | 0 | 18,843,871 | 4,584,214 |
| Exchange differences | 1 |
| 2,567,159 | ||||
|---|---|---|---|---|
| Maturity | -1,313,725 | -711,560 | ||
| Revaluation to fair value | 297,701 | 384,977 | -699,785 | |
| Reclassification into other levels (from L3 to L2 or L1) | -2,400,124 | |||
| Closing balance | 21,084,449 | 3,884,428 | ||
| Income | 921,507 | 86,504 | ||
| Unrealised gains/losses | 606,629 | -699,785 | ||
| Reclassification of assets and financial liabilities between levels | 370 |
| Level 1 | Level 2 | Level 3 | ||
|---|---|---|---|---|
| 31 December 2023 | Investments measured at fair value through profit or loss | 768,164 | 4,303,737 | -5,071,901 |
| Mandatorily measured at fair value through profit or loss, not held for trading | 768,164 | 4,303,737 | -5,071,901 | |
| Debt instruments | 195,614 | 4,876,287 | -5,071,901 | |
| Debt securities reclassified from level 2 into level 1 | 195,614 | -195,614 | 0 | |
| Debt securities reclassified from level 3 into level 2 | 5,071,901 | -5,071,901 | ||
| Equity instruments | 572,550 | -572,550 | 0 | |
| Equity instruments reclassified from level 2 into level 1 | 572,550 | -572,550 | 0 | |
| Investments measured at fair value through other comprehensive income | 5,979,413 | -5,047,910 | -931,503 | |
| Debt instruments | 5,979,413 | -5,047,910 | -931,503 | |
| Reclassification from level 1 into level 2 | -2,526,398 | 2,526,398 | 0 | |
| Reclassification from level 2 into level 1 |
The Group adopted a new fair value hierarchy methodology for investments with effect from 1 October 2023. The data presented are based on the new methodology for the comparative period. The differences from the previous classification presented in the 2022 annual report are due to a transfer of EUR 2.5 million of investments from level 1 into level 2, a transfer of EUR 9.3 million from level 2 into level 1 and a transfer of EUR 6.0 million of investments from level 3 into level 2.
| EUR | Level 1 | Level 2 | Level 3 | ||
|---|---|---|---|---|---|
| 31 December 2023 | Investments measured at fair value through profit or loss | 572,550 | 1,341,375 | -1,913,925 | |
| Mandatorily measured at fair value through profit or loss, not held for trading | 572,550 | 1,341,375 | -1,913,925 | ||
| Debt instruments | 0 | 1,913,925 | -1,913,925 | ||
| Debt securities reclassified from level 3 into level 2 | 0 | 1,913,925 | -1,913,925 | ||
| Equity instruments | 572,550 | -572,550 | 0 | ||
| Equity instruments reclassified from level 2 into level 1 | 572,550 | -572,550 | 0 | ||
| Investments measured at fair value through other comprehensive income | -118,777 | 604,976 | -486,199 | ||
| Debt instruments | -118,777 | 604,976 | -486,199 | ||
| Reclassification from level 1 into level 2 | -118,777 | 118,777 | 0 | ||
| Reclassification from level 3 into level 2 | 0 | 486,199 | -486,199 |
The Company adopted a new fair value hierarchy methodology for investments with effect from 1 October 2023. The data presented are based on the new methodology for the comparative period. The differences from the previous classification presented in the 2022 annual report are due to a transfer of EUR 0.1 million of investments from level 1 into level 2, a transfer of EUR 0.6 million from level 2 into level 1 and a transfer of EUR 2.4 million of investments from level 3 into level 2.
| EUR | Non-life | Life | Total | Non-life | Life | Total |
|---|---|---|---|---|---|---|
| 31 December 2023 | -630,737,533 | -66,825,278 | -697,562,811 | -547,182,815 | -61,804,978 | -608,987,793 |
| Amounts recoverable from insurance contracts ceded to reinsurers | 42,824,599 | 247,178 | 43,071,777 | 38,433,905 | 305,005 | 38,738,910 |
| Total | EUR |
|---|---|
| Insurance contracts not measured using the premium allocation approach (PAA) | |
| Amounts relating to changes in the liability for remaining coverage | 107,140,544 |
| Expected insurance claims, benefits and expenses | 59,831,277 |
| Release of the risk adjustment for non-financial risk for risk expired | 9,989,677 |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | 27,461,070 |
| Other amounts (e.g. experience adjustments for premium receipts) | 9,858,520 |
| Refund of insurance acquisition cash flows | 10,785,511 |
| Total | 117,926,055 |
| Insurance contracts measured using the premium allocation approach | 512,811,476 |
| Insurance revenue | 630,737,531 |
| Total | EUR |
|---|---|
| Insurance contracts not measured using the premium allocation approach (PAA) | |
| Amounts relating to changes in the liability for remaining coverage | 96,720,351 |
| Expected insurance claims, benefits and expenses | 58,325,598 |
| Release of the risk adjustment for non-financial risk for risk expired | 9,827,462 |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | 22,728,114 |
| Other amounts (e.g. experience adjustments for premium receipts) | 5,839,177 |
| Refund of insurance acquisition cash flows | 9,128,324 |
| Total | 105,848,675 |
| Insurance contracts measured using the premium allocation approach | 441,334,138 |
| Insurance revenue | 547,182,813 |
| Total | EUR |
|---|---|
| Insurance contracts not measured using the premium allocation approach (PAA) | |
| Amounts relating to changes in the liability for remaining coverage | 57,267,502 |
| Expected insurance claims, benefits and expenses | 35,847,950 |
| Release of the risk adjustment for non-financial risk for risk expired | 4,468,442 |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | 17,409,416 |
| Other amounts (e.g. experience adjustments for premium receipts) | -458,306 |
| Refund of insurance acquisition cash flows | 9,557,779 |
| Total | 66,825,281 |
| Insurance contracts measured using the premium allocation approach | |
| Insurance revenue | 66,825,281 |
| Total | EUR |
|---|---|
| Insurance contracts not measured using the premium allocation approach (PAA) |
| EUR | Amount |
|---|---|
| Amounts relating to changes in the liability for remaining coverage | 53,070,176 |
| Expected insurance claims, benefits and expenses | 34,198,162 |
| Release of the risk adjustment for non-financial risk for risk expired | 3,546,349 |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | 15,719,413 |
| Other amounts (e.g. experience adjustments for premium receipts) | -393,748 |
| Refund of insurance acquisition cash flows | 8,734,799 |
| Total | 61,804,975 |
| Insurance revenue | 61,804,975 |
|---|---|
| Total | Insurance contracts not measured using the premium allocation approach (PAA) |
|---|---|
| Amounts relating to changes in the liability for remaining coverage | 148,942,159 |
| Expected insurance claims, benefits and expenses | 90,884,369 |
| Release of the risk adjustment for non-financial risk for risk expired | 14,358,334 |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | 43,583,041 |
| Other amounts (e.g. experience adjustments for premium receipts) | 116,415 |
| Refund of insurance acquisition cash flows | 8,889,287 |
| Total | 157,831,445 |
| Insurance revenue | 167,804,126 |
|---|---|
| Total | Insurance contracts not measured using the premium allocation approach (PAA) |
|---|---|
| Amounts relating to changes in the liability for remaining coverage | 136,062,288 |
| Expected insurance claims, benefits and expenses | 86,444,668 |
| Release of the risk adjustment for non-financial risk for risk expired | 13,790,481 |
| Amount of the contractual service margin recognised in profit or loss to reflect the transfer of services | 40,777,966 |
| Other amounts (e.g. experience adjustments for premium receipts) | -4,950,828 |
| Refund of insurance acquisition cash flows | 7,250,465 |
| Total | 143,312,753 |
| Insurance revenue | 150,760,734 |
|---|---|
| Insurance contracts not measured using the PAA | Insurance contracts measured using the PAA | Total | |
|---|---|---|---|
| Insurance service expenses | -76,067,916 | -371,851,682 | -447,919,598 |
| Insurance service operating expenses | -14,689,617 | -148,473,487 | -163,163,104 |
| Acquisition costs | -10,785,511 | -80,522,287 | -91,307,798 |
| Losses on onerous contracts | 303,334 | -2,814,659 | -2,511,325 |
| Administrative expenses |
| Insurance contracts not measured using the PAA | Insurance contracts measured using the PAA | Total | |
|---|---|---|---|
| Insurance service expenses | -62,918,772 | -292,374,019 | -355,292,791 |
| Insurance service operating expenses | -13,166,027 | -127,389,059 | -140,555,086 |
| Acquisition costs | -9,128,324 | -70,883,140 | -80,011,464 |
| Losses on onerous contracts | -61,844 | -2,061,085 | -2,122,929 |
| Administrative expenses | -3,975,859 | -54,444,834 | -58,420,693 |
| Insurance service expenses | -76,084,799 | -419,763,078 | -495,847,877 |
| Insurance contracts not measured using the PAA | Total | |
|---|---|---|
| Insurance service expenses | -17,554,556 | -17,554,556 |
| Insurance service operating expenses | -28,488,257 | -28,488,257 |
| Acquisition costs | -9,557,779 | -9,557,779 |
| Losses on onerous contracts | 424,984 | 424,984 |
| Administrative expenses | -19,355,462 | -19,355,462 |
| Insurance service expenses | -46,042,813 | -46,042,813 |
| Insurance contracts not measured using the PAA | Total | |
|---|---|---|
| Insurance service expenses | -13,016,982 | -13,016,982 |
| Insurance service operating expenses | -28,645,689 | -28,645,689 |
| Acquisition costs | -8,734,799 | -8,734,799 |
| Losses on onerous contracts | -2,046,810 | -2,046,810 |
| Administrative expenses | -17,864,080 | -17,864,080 |
| Insurance service expenses | -41,662,671 | -41,662,671 |
| Insurance contracts not measured using the PAA | Insurance contracts measured using the PAA | Total | |
|---|---|---|---|
| Insurance service expenses | -114,069,334 |
| Insurance contracts not measured using the PAA | Insurance contracts measured using the PAA | Total | |
|---|---|---|---|
| Insurance service expenses | -116,726,011 | -6,123,817 | -122,849,828 |
| Insurance service operating expenses | -9,447,821 | -225,680 | -9,673,501 |
| Acquisition costs | -7,250,465 | -51,917 | -7,302,382 |
| Losses on onerous contracts | 318,020 | - | 318,020 |
| Administrative expenses | -2,515,376 | -173,764 | -2,689,139 |
| Insurance service expenses | -126,173,831 | -6,349,498 | -132,523,329 |
| Total | |
|---|---|
| Reinsurers’ share of insurance revenue, of which: | -42,824,599 |
| Contracts not measured using the premium allocation approach (PAA) | -36,248,168 |
| Contracts measured using the premium allocation approach (PAA) | -6,576,428 |
| Reinsurers’ share of claims, of which: | 85,877,893 |
| Contracts not measured using the premium allocation approach (PAA) | 77,909,179 |
| Contracts measured using the premium allocation approach (PAA) | 7,968,712 |
| Net reinsurance revenue / service expenses | 43,053,294 |
| Total | |
|---|---|
| Reinsurers’ share of insurance revenue, of which: | -38,433,905 |
| Contracts not measured using the premium allocation approach (PAA) | -34,344,981 |
| Contracts measured using the premium allocation approach (PAA) | -4,088,926 |
| Reinsurers’ share of claims, of which: | 43,159,658 |
| Contracts not measured using the premium allocation approach (PAA) | 41,012,356 |
| Contracts measured using the premium allocation approach (PAA) | 2,147,304 |
| Net reinsurance revenue / service expenses | 4,725,753 |
| EUR | Total |
|---|---|
| Reinsurers’ share of insurance revenue, of which: | -305,005 |
| Contracts not measured using the premium allocation approach (PAA) | -305,007 |
| Reinsurers’ share of claims, of which: | 175,432 |
| Contracts not measured using the premium allocation approach (PAA) | 175,431 |
| Net reinsurance revenue / service expenses | -129,573 |
| EUR | Total |
|---|---|
| Reinsurers’ share of insurance revenue, of which: | -30,235,703 |
| Contracts not measured using the premium allocation approach (PAA) | -30,235,703 |
| Reinsurers’ share of claims, of which: | 73,904,850 |
| Contracts not measured using the premium allocation approach (PAA) | 73,904,850 |
| Net reinsurance revenue / service expenses | 43,669,147 |
| EUR | Total |
|---|---|
| Reinsurers’ share of insurance revenue, of which: | -29,572,834 |
| Contracts not measured using the premium allocation approach (PAA) | -29,572,834 |
| Reinsurers’ share of claims, of which: | 39,440,417 |
| Contracts not measured using the premium allocation approach (PAA) | 39,440,417 |
| Net reinsurance revenue / service expenses | 9,867,583 |
| EUR | Total | |||
|---|---|---|---|---|
| Reinsurers’ shares of insurance revenue | Expected recovery for insurance service expenses incurred in the period | -18,608,747 | ||
| Changes in the risk adjustment for non-financial risk | -4,805,562 | |||
| Finance income/expenses recognised in profit or loss | -19,410,291 | |||
| Allocation of reinsurers’ shares of premiums | -42,824,600 | |||
| Reinsurers’ share of claims and other insurance expenses in the period | 89,494,581 | |||
| Changes in amounts recoverable arising from changes in liability for incurred claims | -3,656,185 | |||
| Changes in fulfilment cash flows which relate to onerous underlying contracts | 39,496 | |||
| Reinsurers’ shares of insurance service expenses | 85,877,892 | |||
| Net reinsurance revenue / service expenses | 43,053,292 |
| EUR | Total | |
|---|---|---|
| Reinsurers’ shares of insurance revenue | Expected recovery for insurance service expenses incurred in the period | -16,925,397 |
| Changes in the risk adjustment for non-financial risk | -4,008,143 | |
| Finance income/expenses recognised in profit or loss | -17,500,365 | |
| Allocation of reinsurers’ shares of premiums | -38,433,905 |
| Reinsurers’ share of claims and other insurance expenses in the period | 44,864,842 | |
|---|---|---|
| Changes in amounts recoverable arising from changes in liability for incurred claims | -1,660,252 | |
| Changes in fulfilment cash flows which relate to onerous underlying contracts | -44,935 | |
| Reinsurers’ shares of insurance service expenses | 43,159,655 | |
| Net reinsurance revenue / service expenses | 4,725,750 | |
| Reinsurers’ shares of insurance revenue | Expected recovery for insurance service expenses incurred in the period | -138,846 |
| Changes in the risk adjustment for non-financial risk | 4,148 | |
| Finance income/expenses recognised in profit or loss | -112,479 | |
| Allocation of reinsurers’ shares of premiums | -247,177 | |
| Reinsurers’ share of claims and other insurance expenses in the period | 124,348 | |
| Changes in amounts recoverable arising from changes in liability for incurred claims | 110,000 | |
| Reinsurers’ shares of insurance service expenses | 234,348 | |
| Net reinsurance revenue / service expenses | -12,829 |
| Reinsurers’ shares of insurance revenue | Expected recovery for insurance service expenses incurred in the period | -173,151 |
|---|---|---|
| Changes in the risk adjustment for non-financial risk | -3,087 | |
| Finance income/expenses recognised in profit or loss | -128,766 | |
| Allocation of reinsurers’ shares of premiums | -305,004 | |
| Reinsurers’ share of claims and other insurance expenses in the period | 147,432 | |
| Changes in amounts recoverable arising from changes in liability for incurred claims | 27,999 | |
| Changes in fulfilment cash flows which relate to onerous underlying contracts | - | |
| Reinsurers’ shares of insurance service expenses | 175,431 | |
| Net reinsurance revenue / service expenses | -129,573 |
| Reinsurers’ shares of insurance revenue | Expected recovery for insurance service expenses incurred in the period | -9,717,955 |
|---|---|---|
| Changes in the risk adjustment for non-financial risk | -4,227,733 | |
| Net loss/gain recognised in profit or loss | -16,290,016 | |
| Allocation of reinsurers’ shares of premiums | -30,235,703 | |
| Reinsurers’ share of claims and other insurance expenses in the period | 77,958,868 | |
| Changes in amounts recoverable arising from changes in liability for incurred claims | -4,054,018 | |
| Reinsurers’ shares of insurance service expenses | 73,904,850 | |
| Net reinsurance revenue / service expenses | 43,669,147 |
| Reinsurers’ shares of insurance revenue | Expected recovery for insurance service expenses incurred in the period | -10,522,803 |
|---|---|---|
| Changes in the risk adjustment for non-financial risk | -3,419,272 | |
| Net income/expenses recognised in profit or loss | -15,630,759 | |
| Allocation of reinsurers’ shares of premiums | - |
| EUR | Interest income | Change in fair value of FVTPL investments | Gains on disposal of FVTPL investments | Gains on disposal of investments of other IFRS categories | Income from dividends and shares of other investments | Exchange gains | Change in expected credit losses (ECL) | Diverse other income | Total |
|---|---|---|---|---|---|---|---|---|---|
| Investments measured at amortised cost | 2,640,198 | 0 | 0 | 0 | 0 | 1,518,696 | 524,179 | 0 | 4,683,073 |
| Debt instruments | 1,718,644 | 0 | 0 | 0 | 0 | 30,787 | 15,999 | 0 | 1,765,430 |
| Cash and cash equivalents | 119,718 | 0 | 0 | 0 | 0 | 1,452,543 | 0 | 0 | 1,572,261 |
| Deposits and CDs | 738,694 | 0 | 0 | 0 | 0 | 35,366 | 484,259 | 0 | 1,258,319 |
| Loans | 63,142 | 0 | 0 | 0 | 0 | 0 | 23,921 | 0 | 87,063 |
| Investments measured at fair value through profit or loss | 809,053 | 106,098,756 | 487,591 | 0 | 434,362 | 977,080 | 5,194 | 2,340,151 | 111,152,187 |
| Mandatorily measured at fair value through profit or loss, not held for trading | 809,053 | 106,098,756 | 487,591 |
| Debt instruments | 434,362 | 977,080 | 5,194 | 2,340,151 | 111,152,187 |
|---|---|---|---|---|---|
| Equity instruments | 809,053 | 1,852,682 | 1,293 | 0 | 0 |
| Investments in infrastructure funds | 0 | 0 | 0 | 0 | 2,046,833 |
| Investments in real-estate funds | 0 | 0 | 0 | 0 | 293,318 |
| Investments measured at fair value through other comprehensive income | 18,465,996 | 0 | 0 | 67,299 | 664,699 |
| Debt instruments | 18,465,996 | 0 | 0 | 67,299 | 6,768,940 |
| Equity instruments | 0 | 0 | 0 | 0 | 664,699 |
| Other investments | 0 | 0 | 0 | 0 | 10 |
| Investment property | 0 |
21,915,247
106,098,756
487,591
67,299
1,099,061
9,264,716
1,084,778
3,841,944
143,859,392
378
| EUR | Interest income | Change in fair value of FVTPL investments | Gains on disposal of FVTPL investments | Gains on disposal of investments of other IFRS categories | Income from dividends and shares of other investments | Exchange gains | Change in expected credit losses (ECL) | Diverse other income | Total |
|---|---|---|---|---|---|---|---|---|---|
| Investments measured at amortised cost | 2,050,389 | 0 | 0 | 0 | 0 | 2,135,335 | 437,580 | 0 | 4,623,304 |
| Debt instruments | 1,660,574 | 0 | 0 | 0 | 0 | 30,443 | 23,995 | 0 | 1,715,012 |
| Cash and cash equivalents | 17,149 | 0 | 0 | 0 | 0 | 2,099,670 | 0 | 0 | 2,116,819 |
| Deposits and CDs | 305,831 | 0 | 0 | 0 | 0 | 5,153 | 369,269 | 0 | 680,253 |
| Loans | 66,835 | 0 | 0 | 0 | 0 | 69 |
| 0 | 111,220 | 1,001,716 | 80,421,855 | 624,295 | 0 | 1,164,434 | 1,655,395 | 2,940 | 2,163,885 | 87,034,520 |
|---|---|---|---|---|---|---|---|---|---|---|
| Mandatorily measured at fair value through profit or loss, not held for trading | 1,001,716 | 80,421,855 | 624,295 | 0 | 1,164,434 | 1,655,395 | 2,940 | 2,163,885 | 87,034,520 | |
| Debt instruments | 1,001,716 | -128,249 | 164,578 | 0 | 0 | 8,425 | 2,940 | 0 | 1,049,410 | |
| Equity instruments | 0 | 80,388,284 | 459,717 | 0 | 1,164,434 | 1,646,970 | 0 | 45,469 | 83,704,874 | |
| Investments in infrastructure funds | 0 | 0 | 0 | 0 | 0 | 0 | 1,925,727 | 1,925,727 | ||
| Investments in real-estate funds | 0 | 161,820 | 0 | 0 | 0 | 0 | 192,688 | 354,508 |
| 13,789,533 | 0 | 0 | 1,307,558 | 152,871 | 12,474,113 | 973,087 | 191,230 | 28,888,392 | |
|---|---|---|---|---|---|---|---|---|---|
| Debt instruments | 13,789,533 | 0 | 0 | 1,307,558 | 0 | 12,474,113 | 973,087 | 147,791 | 28,692,082 |
| Equity instruments | 0 | 0 | 0 | 0 |
| EUR | Interest income | Change in fair value of FVTPL investments | Gains on disposal of FVTPL investments | Gains on disposal of investments of other IFRS categories | Income from dividends and shares of other investments | Exchange gains | Change in expected credit losses (ECL) | Diverse other income | Total |
|---|---|---|---|---|---|---|---|---|---|
| Sava Re | 152,871 | 0 | 0 | 49,263 | 202,134 | 0 | 0 | 0 | 16,841,638 |
| Investments measured at amortised cost | 279,456 | 0 | 0 | 0 | 0 | 1,413,257 | 18,130 | 0 | 1,710,843 |
| Debt instruments | 102,760 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 102,763 |
| Cash and cash equivalents | 12,488 | 0 | 0 | 0 | 0 | 1,413,257 | 0 | 0 | 1,425,745 |
| Deposits and CDs | 41,806 | 0 | 0 | 0 | 0 | 0 | 2,940 | 0 | 44,746 |
|---|---|---|---|---|---|---|---|---|---|
| Loans | 122,402 | 0 | 0 | 0 | 0 | 0 | 15,188 | 0 | 137,590 |
|---|---|---|---|---|---|---|---|---|---|
| Investments measured at fair value through profit or loss | 230,222 | 3,903,887 | 9,388 | 0 | 217,967 | 672,816 | 0 | 1,008,011 | 6,042,291 |
|---|---|---|---|---|---|---|---|---|---|
| Mandatorily measured at fair value through profit or loss, not held for trading | 230,222 | 3,903,887 | 9,388 | 0 | 217,967 | 672,816 | 0 | 1,008,011 | 6,042,291 |
|---|---|---|---|---|---|---|---|---|---|
| Debt instruments | 230,222 | 433,741 | 0 | 0 | 0 | 0 | 0 | 0 | 663,964 |
|---|---|---|---|---|---|---|---|---|---|
| Equity instruments | 0 | 3,470,146 | 9,388 | 217,967 | 672,816 | 0 | 0 | 4,370,316 |
|---|---|---|---|---|---|---|---|---|
| Investments in infrastructure funds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 921,507 | 921,507 |
|---|---|---|---|---|---|---|---|---|---|
| Investments in real-estate funds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 86,504 | 86,504 |
|---|---|---|---|---|---|---|---|---|---|
| Investments measured at fair value through other comprehensive income | 4,455,595 | 0 | 0 | 12,456 | 0 | 6,521,397 | 71,790 |
|---|---|---|---|---|---|---|---|
| EUR | Interest income | Change in fair value of FVTPL investments | Gains on disposal of FVTPL investments | Gains on disposal of investments of other IFRS categories | Income from dividends and shares of other investments | Exchange gains | Change in expected credit losses (ECL) | Diverse other income | Total |
|---|---|---|---|---|---|---|---|---|---|
| Investments measured at amortised cost | 252,454 | 0 | 0 | 0 | 0 | 1,882,163 | 57,206 | 0 | 2,191,824 |
| Debt instruments | 134,215 | 0 | 0 | 0 | 0 | 0 | 19,374 | 0 | 153,589 |
| Cash and cash equivalents | 12 | 0 | 0 | 0 | 0 | 1,882,163 | 0 | 0 | 1,882,175 |
| Deposits and CDs | 0 |
4,965,273
3,903,887
9,388
12,456
217,967
8,607,469
89,921
1,875,584
19,681,945
| Loans | 118,227 | 0 | 0 | 0 | 0 | 0 | 37,832 | 0 | 156,060 |
|---|---|---|---|---|---|---|---|---|---|
| Investments measured at fair value through profit or loss | 291,402 | 4,129,770 | 77,683 | 0 | 458,074 | 1,000,711 | 0 | 653,583 | 6,611,224 |
|---|---|---|---|---|---|---|---|---|---|
| Mandatorily measured at fair value through profit or loss, not held for trading | 291,402 | 4,129,770 | 77,683 | 0 | 458,074 | 1,000,711 | 0 | 653,583 | 6,611,224 |
| Debt instruments | 291,402 | 222,031 | 54,611 | 0 | 0 | 0 | 0 | 0 | 568,044 |
| Equity instruments | 0 | 3,907,740 | 23,072 | 0 | 458,074 | 1,000,711 | 0 | 0 | 5,389,597 |
| Investments in infrastructure funds | 0 | 0 | 0 | 0 | 0 | 0 | 602,302 | 602,302 | |
| Investments in real-estate funds | 0 | 0 | 0 | 0 | 0 | 0 | 51,281 | 51,281 |
| Investments measured at fair value through other comprehensive income | 2,435,600 | 0 | 0 | 1,163,032 | 0 | 11,763,230 | 96,720 | 0 | 15,458,583 |
|---|---|---|---|---|---|---|---|---|---|
| Debt instruments |
| Investment property | 0 | 0 | 0 | 0 | 0 | 0 | 829,030 | 829,030 | |
|---|---|---|---|---|---|---|---|---|---|
| Total investment income | 2,979,457 | 4,129,770 | 77,683 | 1,163,032 | 458,074 | 14,646,105 | 153,926 | 1,482,613 | 25,090,661 |
| EUR | Interest expenses | Change in fair value of FVTPL investments | Losses on disposal of FVTPL investments | Losses on disposal of investments of other IFRS categories | Exchange losses | Change in expected credit losses (ECL) | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Investments measured at amortised cost | 767 | 0 | 0 | 0 | 3,259,089 | 582,666 | 5,590 | 3,848,112 |
| Debt instruments | 0 | 0 | 0 | 0 | 41,720 | 24,860 | 880 | 67,460 |
| Cash and cash equivalents | 0 | 0 | 0 | 0 | 3,168,264 | 0 | 0 | 3,168,264 |
| Deposits and CDs | 767 | 0 | 0 | 0 | 49,105 | 550,833 | 4,710 | 605,415 |
| 0 | 0 | 0 | 0 | 0 | 6,973 | 0 | 6,973 |
|---|---|---|---|---|---|---|---|
| 0 | 47,756,284 | 406,002 | 0 | 1,333,568 | 0 | 14,603 | 49,510,457 |
|---|---|---|---|---|---|---|---|
| 0 | 47,756,284 | 406,002 | 0 | 1,333,568 | 0 | 14,603 | 49,510,457 |
|---|---|---|---|---|---|---|---|
| 0 | 387,857 | 16,669 | 0 | 0 | 0 | 0 | 404,526 |
|---|---|---|---|---|---|---|---|
| 0 | 46,952,443 | 389,333 | 0 | 1,333,568 | 0 | 14,603 | 48,689,947 |
|---|---|---|---|---|---|---|---|
| 0 | 415,984 | 0 | 0 | 0 | 0 | 0 | 415,984 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 888,628 | 10,221,916 | 158,318 | 128,471 | 11,397,333 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 888,628 | 10,221,916 | 158,318 | 18,394 | 11,287,256 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 110,077 | 110,077 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| EUR | Interest expenses | Change in fair value of FVTPL investments | Losses on disposal of FVTPL investments | Losses on disposal of investments of other IFRS categories | Exchange losses | Change in expected credit losses (ECL) | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Investments measured at amortised cost | 187,526 | 0 | 0 | 0 | 2,586,018 | 501,356 | 2,356,989 | 5,631,889 |
| Debt instruments | 0 | 0 | 0 | 0 | 14,804 | 33,280 | 2,353,629 | 2,401,713 |
| Cash and cash equivalents | 174,572 | 0 | 0 | 0 | 2,544,928 | 0 | 0 | 2,719,500 |
| Deposits and CDs | 12,954 | 0 | 0 | 0 | 1,193 | 413,401 | 3,360 | 430,908 |
| Loans granted | 0 |
767
47,756,284
406,002
888,628
14,814,573
740,984
827,413
65,434,651
| 0 | 25,093 | 54,675 | 0 | 79,768 | |||
|---|---|---|---|---|---|---|---|
| 0 | 153,270,544 | 966,247 | 0 | 1,184,095 | 0 | 1,845 | 155,422,731 |
| 0 | 153,270,544 | 966,247 | 0 | 1,184,095 | 0 | 1,845 | 155,422,731 |
|---|---|---|---|---|---|---|---|
| 0 | 6,430,158 | 150,594 | 0 | 6,548 | 0 | 0 | 6,587,300 |
|---|---|---|---|---|---|---|---|
| 0 | 146,838,256 | 815,653 | 0 | 1,177,547 | 0 | 1,845 | 148,833,301 |
|---|---|---|---|---|---|---|---|
| 0 | 2,130 | 0 | 0 | 0 | 0 | 0 | 2,130 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 1,736,948 | 11,217,701 | 561,270 | 155,258 | 13,671,177 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 1,736,948 | 11,217,701 | 561,270 | 41,279 | 13,557,198 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 113,979 | 113,979 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 521,894 | 521,894 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 521,894 | 521,894 |
|---|---|---|---|---|---|---|---|
| 187,526 | 153,270,544 | 966,247 | 1,736,948 | 14,987,814 | 1,062,626 | 3,035,986 | 175,247,691 |
|---|---|---|---|---|---|---|---|
| EUR | Interest expenses | Change in fair value of FVTPL investments | Losses on disposal of FVTPL investments | Losses on disposal of investments of other IFRS categories | Exchange losses | Change in expected credit losses (ECL) | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Investments measured at amortised cost | 0 | 0 | 0 | 0 | 3,124,503 | 23,954 | 0 | 3,148,457 |
| Debt instruments | 0 | 0 | 0 | 0 | 0 | 10 | 0 | 10 |
| Cash and cash equivalents | 0 | 0 | 0 | 0 | 3,124,503 | 0 | 0 | 3,124,503 |
| Deposits and CDs | 0 | 0 | 0 | 0 | 0 | 23,399 | 0 | 23,399 |
| Loans granted | 0 | 0 | 0 | 0 | 0 | 545 | 0 | 545 |
| Investments measured at fair value through profit or loss | 0 | 2,692,105 | 158,893 | 0 | 919,266 | 0 | 0 | 3,770,264 |
| Mandatorily measured at fair value through profit or loss, not held for trading | 0 | 2,692,105 | 158,893 | 0 |
| Debt instruments | 0 | 78,616 | 15,456 | 0 | 0 | 0 | 0 | 94,072 |
|---|---|---|---|---|---|---|---|---|
| Equity instruments | 0 | 2,613,489 | 143,437 | 0 | 919,266 | 0 | 0 | 3,676,192 |
| Investments measured at fair value through other comprehensive income | 0 | 0 | 0 | 132,904 | 10,047,293 | 11,541 | 6,905 | 10,198,643 |
| Investment property | 0 | 0 | 0 | 0 | 0 | 0 | 220,196 | 220,196 |
| Total investment expenses | 0 | 2,692,105 | 158,893 | 132,904 | 14,091,062 | 35,495 | 227,101 | 17,337,560 |
| Interest expenses | 31,738 |
|---|---|
| Change in fair value of FVTPL investments | 0 |
| Losses on disposal of FVTPL investments | 0 |
| Losses on disposal of investments of other IFRS categories | 0 |
| Exchange losses | 2,299,036 |
| Change in expected credit losses (ECL) | 34,609 |
| Other | 0 |
| Total | 2,365,383 |
| 0 | 0 | 0 | 0 | 2,496 |
|---|---|---|---|---|
| 31,738 | 0 | 0 | 0 | 2,299,036 | 0 | 0 | 2,330,774 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 32,113 | 0 | 32,113 |
|---|---|---|---|---|---|---|---|
| 0 | 7,232,854 | 69,230 | 0 | 753,139 | 0 | 0 | 8,055,223 |
|---|---|---|---|---|---|---|---|
| 0 | 7,232,854 | 69,230 | 0 | 753,139 | 0 | 0 | 8,055,223 |
|---|---|---|---|---|---|---|---|
| 0 | 1,619,214 | 14,909 | 0 | 0 | 0 | 0 | 1,634,123 |
|---|---|---|---|---|---|---|---|
| 0 | 5,613,640 | 54,321 | 0 | 753,139 | 0 | 0 | 6,421,101 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 965,345 | 10,167,440 | 97,494 | 2,115 | 11,232,394 |
|---|---|---|---|---|---|---|---|
| 965,345 | 10,167,440 | 97,494 | 2,115 | 11,232,394 |
|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|
| 197,962 | 197,962 | ||||
|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 |
| 197,962 | 197,962 |
| 31,738 | 7,232,854 | 69,230 | 965,345 | 13,219,615 | 132,103 | 200,077 | 21,850,963 |
|---|---|---|---|---|---|---|---|
The Group records investment income and expenses separately by source of funds, i.e. separately for own fund assets, non-life insurance register assets and life insurance register assets.
Own fund investments support the Group’s equity; non-life insurance register assets support (re)insurance contract liabilities relating to non-life business, whereas life insurance register assets support (re)insurance contract liabilities relating to life insurance business.
| EUR | Liability fund | Liability fund | Liability fund | Liability fund | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|---|---|---|---|
| Interest income | 8,393,085 | 5,715,377 | 4,091,965 | 2,607,145 | ||||
| Change in fair value | 8,083,070 | 8,956,377 | 3,828,337 | 3,944,088 | ||||
| Gains on disposal of investments | 42,381 | 1,385,397 | 21,844 | 1,218,385 | ||||
| Income from dividends and shares – other investments | 377,731 | 624,515 | 197,197 | 442,578 | ||||
| Exchange gains | 9,092,627 | 15,787,403 | 8,605,716 | 14,644,119 | ||||
| Change in expected credit losses (ECL) | 569,613 | 372,522 | 84,298 | 64,565 | ||||
| Diverse other income | 3,662,301 | 3,544,010 | 1,865,515 | 1,472,242 | ||||
| Total investment income – liability fund | 30,220,808 | 36,385,601 | 18,694,872 | 24,393,121 |
| Capital fund | Capital fund | Capital fund | Capital fund | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|---|---|---|
| Interest income | 2,469,129 |
| Assets supporting life business | 2023 | 2022 |
|---|---|---|
| Interest income | 8,917,868 | 9,174,166 |
| Change in fair value | 97,489,188 | 70,728,654 |
| Gains on disposal of investments | 466,971 | 441,209 |
| Income from dividends and shares – other investments | 699,810 | 675,691 |
| Exchange gains | 111,507 | 424,328 |
| Change in expected credit losses (ECL) | 349,494 | 801,947 |
| Diverse other income | 59,673 | 106,127 |
| Total investment income – life insurance liability fund | 108,094,511 | 82,352,122 |
| Capital fund | 2023 | 2022 |
|---|---|---|
| Interest income | 2,135,165 | 1,223,333 |
| Change in fair value | 163,740 | 352,187 |
| Gains on disposal of investments | 34,740 | 43,761 |
| Total investment income – capital fund | 3,059,806 | 1,428,663 | 987,073 | 697,540 |
|---|---|---|---|---|
| Total investment income – non-life business | 33,280,614 | 37,814,264 | 19,681,945 | 25,090,661 |
| Investment income – life insurance business |
| 0 | 1,602 | |
|---|---|---|
| Exchange gains | 58,769 | 49,535 |
| Change in expected credit losses (ECL) | 91,853 | 87,535 |
| Diverse other income | 0 | 140,471 |
| Total investment income – capital fund | 2,484,267 | 1,898,424 |
| Total investment income – life business | 110,578,778 | 84,250,546 |
| EUR | Liability fund | Liability fund | Liability fund | Liability fund |
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Interest expenses | 767 | 78,340 | 0 | 5,012 |
| Change in fair value | 5,740,499 | 15,437,933 | 2,665,061 | 6,835,627 |
| Losses on disposal of investments | 469,967 | 1,271,573 | 276,341 | 1,026,523 |
| Exchange losses | 14,589,799 | 14,547,581 | 14,089,188 | 13,217,805 |
| Change in expected credit losses (ECL) | 522,246 | 553,991 | 31,242 | 66,866 |
| Other | 549,575 | 471,861 | 222,052 | 195,388 |
| Total investment expenses – liability fund | 21,872,853 | 32,361,279 | 17,283,884 | 21,347,221 |
| Capital fund | Capital fund | Capital fund | Capital fund | |
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Interest expenses | 0 | 41,765 | 0 | 26,726 |
| Change in fair value | 79,524 | 1,478,385 | 27,044 | 397,227 |
| Losses on disposal of investments | 16,315 | 87,220 |
| Exchange losses | 15,456 |
|---|---|
| 8,052 | |
| Change in expected credit losses (ECL) | 2,039 |
| 4,275 | |
| 1,875 | |
| 1,811 | |
| Other | 37,295 |
| 113,946 | |
| 4,253 | |
| 65,237 | |
| Total investment expenses – capital fund | 148,285 |
| 1,787,544 | |
| 53,677 | |
| 503,741 |
| Expenses for financial assets and liabilities – life business | 22,021,138 |
|---|---|
| 34,148,823 | |
| 17,337,560 | |
| 21,850,962 |
| 2023 | 2022 | |
|---|---|---|
| Interest expenses | 0 | 53,694 |
| Change in fair value | 41,866,122 | 132,341,697 |
| Losses on disposal of investments | 572,783 | 788,149 |
| Exchange losses | 146,908 | 198,983 |
| Change in expected credit losses (ECL) | 25,109 | 219,766 |
| Other | 255,806 | 145,570 |
| Total investment expenses – life insurance liability fund | 42,866,728 | 133,747,859 |
| 2,023 | 2,022 | |
|---|---|---|
| Interest expenses | 0 | 13,727 |
| Change in fair value | 70,139 | 4,012,529 |
| Losses on disposal of investments | 235,565 | 556,253 |
| Exchange losses | 75,827 | 236,975 |
| Change in expected credit losses (ECL) | 156,334 | 174,923 |
| Other | 8,920 | 2,356,602 |
| Total investment expenses – capital fund | 546,785 | 7,351,009 |
| 43,413,513 | 141,098,868 |
|---|---|
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Non-life insurance | 11,259,476 | 3,665,441 | 2,344,384 | 3,239,699 |
| Life insurance | 67,165,265 | -56,848,322 | 0 | 0 |
| Total | 78,424,741 | -53,182,881 | 2,344,384 | 3,239,699 |
The Group’s investment return for 2023 was EUR 78.4 million and includes the return on investments supporting the liabilities of life insurance policyholders who bear the investment risk (direct participating contracts).
The return on the investments supporting the liabilities of life policyholders who bear the investment risk in 2023 was EUR 56.0 million (31 December 2022: EUR -60.9 million). The majority of the return relates to the change in the fair value of unit-linked life insurance mutual funds (31 December 2023: EUR 55.4 million, 31 December 2022: EUR -61.1 million). The majority of this return has no impact on profit or loss, as accordingly finance expenses on unit-linked life insurance contracts have also been recognised.
The return on the Group’s investments for 2023, net of exchange differences and net of the return on investments supporting the liabilities of life policyholders who bear the investment risk, is EUR 27.9 million. The largest part of this is interest income of EUR 21.9 million, reflecting financial conditions that allow for high-yield investments.
The net investment income of Sava Re in 2023 was EUR 2.3 million (2022: EUR 3.2 million). The net investment income was lower in 2023, mainly due to negative exchange differences. Excluding exchange differences, the 2023 return of EUR 7.8 million is higher than the 2022 return of EUR 1.8 million, mainly due to higher interest income and fair value gains on investments at fair value through profit or loss.
The Group monitors operating expenses by nature. Compared to 2022, these expenses rose by 11.9%, or EUR 17.7 million, (2022: EUR 8.4 million).
The Company’s operating expenses increased by 17.2% or by EUR 2.8 million (2022: EUR -1.1 million).
| Sava Insurance Group | Sava Re | EUR 2023 | EUR 2022 | |
|---|---|---|---|---|
| Acquisition costs (commissions) | 84,253,993 | 78,674,766 | 34,982,281 | 44,149,728 |
| Depreciation/amortisation of operating assets | 11,645,260 | 9,274,469 | 671,812 | 543,794 |
| Personnel costs | 98,735,179 | 89,732,838 | 11,305,985 | 9,969,809 |
| - Salaries and wages | 74,381,931 | 65,912,267 | 8,807,034 | 7,727,933 |
| - Social and pension insurance costs | 10,665,861 | 9,534,333 | 1,457,342 | 1,283,969 |
| - Other personnel costs | 13,687,387 | 14,286,238 | 1,041,610 | 957,907 |
| Costs of services by natural persons not performing business Total including taxes and contributions | 1,210,564 | 975,695 | 469,080 | 327,662 |
| Other operating expenses | 55,806,322 | 49,671,531 | 6,321,946 | 5,173,291 |
| Total | 251,651,318 | 228,329,299 | 53,751,104 | 60,164,284 |
| EUR | 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|---|
| Attributable expenses | 200,636,773 | 183,946,615 | 39,945,596 | 48,360,421 | |
| Non-attributable expenses | 29,432,276 | 26,979,168 | 13,805,508 | 11,803,863 | |
| Expenses of non-insurance companies | 21,582,269 | 17,403,516 | 0 | 0 | |
| Total | 251,651,318 | 228,329,299 | 53,751,104 | 60,164,284 |
387
The main items of other operating expenses, excluding audit expenses, are as follows.
| EUR | 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|---|
| Other operating expenses | 54,951,844 | 48,824,840 | 6,051,684 | 4,975,130 | |
| Cost of materials | 1,952,616 | 1,579,458 | 66,464 | 59,664 | |
| Energy costs | 2,281,062 | 2,010,370 | 138,347 | 115,384 | |
| Lease expenses | 4,704,807 | 3,838,023 | 1,083,886 | 902,154 | |
| Employee reimbursements and training costs | 1,820,193 | 1,474,085 | 414,330 | 242,586 | |
| Cost of other services | 15,741,976 | 13,242,214 | 891,023 | 681,841 | |
| Transaction costs | 2,581,785 | 2,481,845 | 276,763 | 260,141 | |
| Costs of intellectual and personal services | 12,931,395 | 11,053,127 | 2,253,531 | 1,987,393 | |
| Insurance premiums | 489,718 | 420,146 | 171,571 | 162,757 | |
| Cost of advertising, promotion and entertainment | 7,735,539 | 8,669,014 | 214,010 | 169,877 | |
| Provisions for pensions and other provisions | 1,449,206 |
| Audit of annual report | 709.774 | 709.487 | 217.017 | 145.594 |
|---|---|---|---|---|
| Other assurance services | 144.705 | 137.203 | 53.245 | 52.567 |
| Total | 854.479 | 846.690 | 270.262 | 198.161 |
The cost of auditing the annual report includes audit costs incurred by each Group company, and additionally for the Company, in addition to the cost of auditing the separate financial statements, the cost of auditing the consolidated financial statements of the Sava Insurance Group. Other audit services relate to assurance services for reports drawn up by the Company and the Group under Solvency II requirements, and for other reports for which the auditor provides assurance services (related parties report, ESEF compliance report, reporting to the Insurance Supervision Agency, remuneration report, approval of financial statements for foreign regulators and similar).
In 2023, the Group generated income from profit distributions of associates of EUR 2.169.860 (2022: EUR 1.285.731). No impairment losses on goodwill were recognised in 2022 or 2023. In 2023, the Company recognised EUR 30.6 million (2022: EUR 51.9 million) of dividend income and profit distributions. There were no impairment losses on shares in subsidiaries in 2023 (2022: EUR 1.2 million of impairment losses on shares in the subsidiary Sava Osiguruvanje (MKD).
| Penalties and damages received | 497.291 | 591.142 | 18.169 | 580 |
|---|---|---|---|---|
| Operating income from revaluation | 77.611 | 397.089 | 0 | 0 |
| Revenue from other services | 4.772.343 | 4.800.360 | 489.410 | 592.836 |
| Operating revenue | 9.147.731 | 4.166.143 | 0 | 0 |
| Insurance revenue outside the scope of IFRS 17 | 2.441.442 | 2.793.845 | 0 | 0 |
| Other income | 16.936.418 | 12.748.579 | 507.579 | 593.416 |
| Net exchange differences | -4.743 | -457.016 |
| -4,997 | -457,013 | ||||
|---|---|---|---|---|---|
| Operating expenses from revaluation | -119,356 | -119,319 | 0 | 0 | |
| Expenses for other services | -4,819,796 | -1,913,197 | -268,260 | -121,426 | |
| Expenses of non-insurance companies | -21,582,269 | -17,403,516 | 0 | 0 | |
| Other expenses | -26,526,164 | -19,893,048 | -273,257 | -578,439 | |
| Net other operating income and expenses | -9,589,746 | -7,144,469 | 234,322 | 14,977 |
Income from other services comprises gains on the disposal of items of property, plant and equipment, extraordinary interest income and income from the use of holiday facilities.
Operating income mainly includes income from assistance services.
Expenses for other services include allowances for and impairment losses on other receivables, indirect operating expenses relating to investment property, expenses due to impairment losses on property, plant and equipment assets for own use and other extraordinary expenses.
Tax expense recognised in the income statement
| Sava Insurance Group | Sava Re | EUR | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|---|---|
| Income tax expense | 13,119,837 | 9,736,944 | 2,893,138 | 364,624 | ||
| Deferred tax expense | 1,836,345 | 1,841,660 | 1,221,269 | 2,216,322 | ||
| Total tax expense recognised in the income statement | 14,956,182 | 11,578,604 | 4,114,406 | 2,580,945 |
Items that will not be reclassified to profit or loss
| 2023 | 2022 | EUR | Before taxes | Tax | After taxes | Before taxes | Tax | After taxes |
|---|---|---|---|---|---|---|---|---|
| Other revaluation surpluses | -845,648 | 26,777 | -818,871 | -953,857 | -298,198 | -1,252,055 | ||
| Total | -845,648 | 26,777 | -818,871 | -953,857 | -298,198 | -1,252,055 |
| 2023 | 2022 | EUR | Before taxes | Tax | After taxes |
|---|---|---|---|---|---|
| Before taxes | Tax | After taxes | |
|---|---|---|---|
| Net gains/losses on financial instruments at FVOCI | -50,080,928 | 7,282,958 | -42,797,970 |
| Finance income or expenses from insurance contracts | 33,063,968 | -5,032,586 | 28,031,382 |
| Net finance income or expenses from reinsurance contracts | -1,378,743 | 685,098 | -693,645 |
| Realised net gains/losses on financial investments at FVOCI | -661,574 | - | -661,574 |
| Other comprehensive income | -19,057,277 | 2,935,470 | -16,121,807 |
| Before taxes | Tax | After taxes | |
|---|---|---|---|
| Net gains/losses on financial instruments at FVOCI | -9,832,360 | 1,444,764 | -8,387,596 |
| Finance income or expenses from insurance contracts | 3,038,396 | -1,096,411 | 1,941,985 |
| Sava Insurance Group | Sava Re | EUR | 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|---|---|---|
| Profit or loss before tax | 79,613,353 | 58,502,045 | 53,589,208 | 63,931,896 | |||
| Income tax expense at statutory tax rate (local) | 21,521,834 | 22,441,898 | 10,181,950 | 12,147,060 | |||
| Adjustment to actual rates | -1,187,948 | -805,830 | 0 | 0 | |||
| Tax effect of income deductible for tax purposes | -6,333,947 | -10,474,264 | -5,878,076 | -9,955,777 | |||
| Tax effect of expenses not tax deductible | 1,478,267 | -301,910 | 94,737 | -440,525 | |||
| Tax effect of income that increases tax base | 389,626 | 688,915 | 292,976 | 497,643 | |||
| Tax relief | -3,104,414 | -807,470 | -1,798,449 | -620,846 | |||
| Temporarily unrecognised deferred tax | 322,597 | -1,005,105 | 0 | 0 | |||
| Other | 1,870,167 | 1,842,370 | 1,221,269 | 953,391 | |||
| Total income tax expense in the income statement | 14,956,182 | 11,578,604 | 4,114,406 | 2,580,945 | |||
| Effective tax rate | 18.79% | 19.79% | 7.68% | 4.04% |
| EUR | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
|---|---|---|---|---|
| Outstanding recourse receivables | 35,689,636 | 30,003,944 | - | - |
| Receivables from the cancellation of subordinated financial instruments | 37,960,300 | 37,960,300 | 10,038,000 | 10,038,000 |
| Other potential receivables | 1,870,961 | 1,891,582 | 225,565 | 244,026 |
| Contingent assets | 75,520,897 | 69,855,826 | 10,263,565 | 10,282,026 |
| EUR | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
|---|---|---|---|---|
| Guarantees issued | 11,446,639 | 12,398,533 | 3,106,691 | 4,372,752 |
| Civil claims (lawsuits) | 0 | 60,908 | - | - |
| Contingent liabilities | 11,446,639 | 12,459,441 | 3,106,691 | 4,372,752 |
For 2023 and 2022, the Group and the Company recognised contingent assets equal to their cancelled subordinated instruments, in respect of which they continue to take action to protect their interests. In December 2016, claims were filed against the issuing banks of the subordinated financial instruments held by the Group and the Company prior to their cancellation.
Securities given mostly represent potential liabilities arising from investments in alternative funds. At the time of signing the subscription, which represents a commitment to make future payments into the alternative fund, the Company recognises the amount of the commitment as a contingent liability, which is then reduced by the amount drawn at each call.
The Group makes separate disclosures for the following groups of related parties:
The Group’s largest shareholder is Slovenian Sovereign Holding and the Republic of Slovenia with a 31.6% stake. The ultimate beneficial owner of Slovenian Sovereign Holding is the Republic of Slovenia.
| EUR | Gross salary – fixed amount | Gross salary – variable amount | Benefits in kind – insurance premiums | Benefits in kind – use of company car | Total |
|---|---|---|---|---|---|
| Marko Jazbec | 217,800 | 62,816 | 421 | 3,862 | 284,899 |
| Polona Pirš Zupančič | 195,586 | 139,706 | 5,486 | 8,120 | 348,898 |
| Peter Skvarča | 194,850 | 53,460 | 5,426 | 3,842 | 257,578 |
| Name | Gross salary – fixed amount | Gross salary – variable amount | Benefits in kind – insurance premiums | Benefits in kind – use of company car | Total |
|---|---|---|---|---|---|
| David Benedek | 153,235 | 0 | 2,726 | 5,596 | 161,557 |
| Marko Jazbec | 210,586 | 155,623 | 426 | 3,281 | 369,916 |
| Jošt Dolničar | 62,625 | 140,082 | 1,750 | 1,010 | 205,467 |
| Polona Pirš Zupančič | 179,400 | 53,460 | 5,442 | 9,012 | 247,314 |
| Peter Skvarča | 179,400 | 53,460 | 5,451 | 4,696 | 243,007 |
| Total | 632,011 | 402,625 | 13,069 | 17,999 | 1,065,705 |
| Name | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Marko Jazbec | 18,000 | 18,000 |
| Polona Pirš Zupančič | 16,200 | 14,850 |
| Peter Skvarča | 16,200 | 14,850 |
| David Benedek | 16,200 | |
| Total | 66,600 | 47,700 |
In 2023, EUR 86,246 was paid to Polona Pirš Zupančič, a member of the management board of Sava Re, in respect of deferred remuneration for 2021, 2020, 2019 and 2018.
As at 31 December 2023, the Company disclosed liabilities for potential payment of the variable part of pay of management board members in respect of 2021 and 2022 subject to certain conditions in the amount of EUR 136,763.
As at 31 December 2023, the Company had no receivables due from the management board members. Management board members are not remunerated for their functions in subsidiary companies. They have other entitlements under employment contracts, i.e. an allowance for annual leave of EUR 1,800, severance pay upon retirement and contributions to voluntary supplementary pension insurance. The management board members are not entitled to jubilee benefits for 10, 20 or 30 years of service.
| Attendance fees | Remuneration for performing the function | Reimbursement of expenses and training | Benefits in kind – insurance premiums | Total |
|---|---|---|---|---|
chairman
| 2,695 | 19,500 | 77,922 | 84 | 100,201 |
|---|---|---|---|---|
deputychairman
| 2,695 | 14,300 | 6,679 | 84 | 23,758 |
|---|---|---|---|---|
member
| 2,695 | 13,000 | 186 | 84 | 15,965 |
|---|---|---|---|---|
member
| 2,695 | 13,000 | 2,353 | 84 | 18,132 |
|---|---|---|---|---|
member
| 1,375 | 5,850 | 0 | 0 | 7,225 |
|---|---|---|---|---|
member
| 2,695 | 13,000 | 0 | 84 | 15,779 |
|---|---|---|---|---|
member
| 1,320 | 7,150 | 0 | 84 | 8,554 |
|---|---|---|---|---|
| 16,170 | 85,800 | 87,140 | 504 | 189,614 |
|---|---|---|---|---|
chairman
| 1,980 | 4,875 | 2,161 | 0 | 9,016 |
|---|---|---|---|---|
member
| 1,100 | 1,462 | 0 | 0 | 2,562 |
|---|---|---|---|---|
member
| 880 | 1,787 | 0 | 0 | 2,667 |
|---|---|---|---|---|
externalmember
| Dragan Martinović | external member | 0 | 7,725 | 179 | 0 | 7,904 |
|---|---|---|---|---|---|---|
| Total audit committee members | 6,825 |
| Klemen Babnik | chairman | 660 | 4,875 | 57 | 0 | 5,592 |
|---|---|---|---|---|---|---|
| Davor Ivan Gjivoje Jr | member | 660 | 3,250 | 23,854 | 0 | 27,764 |
| Keith William Morris | member | 660 | 3,250 | 2,045 | 0 | 5,955 |
| Matej Gomboši | member | 660 | 3,250 | 720 | 0 | 4,630 |
| Gorazd Andrej Kunstek (until 12 June 2023) | alternate member | 440 | 1,462 | 0 | 0 | 1,902 |
| Edita Rituper (from 13 June 2023) | member | 220 | 1,787 | 0 | 0 | 2,007 |
| Blaž Garbajs (from 14 December 2023) | member | 0 | 157 | 0 | 0 | 157 |
| Total nominations committee members | 48,007 |
| Keith William Morris | chairman |
|---|---|
| Member | Attendance fees | Remuneration for performing the function | Reimbursement of expenses and training | Benefits in kind – insurance premiums | Total |
|---|---|---|---|---|---|
| Davor Ivan Gjivoje Jr | 1,320 | 4,875 | 4,089 | 0 | 10,284 |
| Slaven Mićković | 1,320 | 3,250 | 47,707 | 0 | 52,277 |
| Janez Komelj | 0 | 11,996 | 0 | 0 | 11,996 |
| Members of the risk committee | Total risk committee members | 78,471 | |||
| Keith William Morris | 440 | 4,875 | 1,363 | 0 | 6,678 |
| Klemen Babnik | 440 | 3,250 | 38 | 0 | 3,728 |
| Rok Saje | 440 | 3,250 | 0 | 0 | 3,690 |
| Klara Hauko | 440 | 3,250 | 0 | 0 | 3,690 |
| Members of the fit & proper committee | Total members of the fit & proper committee | 17,786 |
| Name | Position | Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
|---|---|---|---|---|---|---|
| Davor Ivan Gjivoje Jr | chairman | 2,915 | 19,500 | 38,248 | 81 | 60,744 |
| Keith William Morris | deputychairman | 2,915 | 14,300 | 4,909 | 81 | 22,206 |
| Klemen Babnik | member | 2,915 | 13,000 | 47 | 81 | 16,043 |
| Matej Gomboši | member | 2,915 | 13,000 | 1,559 | 81 | 17,555 |
| Gorazd Andrej Kunstek | member | 2,915 | 13,000 | 244 | 81 | 16,240 |
| Edita Rituper | member | 2,915 | 13,000 | 0 | 81 | 15,996 |
| Total supervisory board members | 17,490 | 85,800 | 45,007 | 488 | 148,785 |
| Name | Position | Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
|---|---|---|---|---|---|---|
| Matej Gomboši | chairman | 2,596 | 4,875 | 1,735 | 0 | 9,206 |
| Gorazd Andrej Kunstek | member | 2,596 | 3,250 | 271 | 0 | 6,117 |
| Katarina Sitar Šuštar | externalmember | 0 | 10,625 | 107 | 0 | 10,731 |
| Dragan Martinović | externalmember | 0 | 6,851 | 0 | 0 | 6,851 |
| Total audit committee members | 5,192 | 25,600 |
| Klemen Babnik | chairman | 1,100 | 4,875 | 22 | 0 | 5,997 |
|---|---|---|---|---|---|---|
| Davor Ivan Gjivoje Jr | member | 1,100 | 3,250 | 25,258 | 0 | 29,608 |
| Keith William Morris | member | 1,100 | 3,250 | 2,316 | 0 | 6,666 |
| Matej Gomboši | member | 1,100 | 3,250 | 735 | 0 | 5,085 |
| Gorazd Andrej Kunstek | member | 1,100 | 3,250 | 115 | 0 | 4,465 |
| Edita Rituper | member | 440 | 0 | 0 | 0 | 440 |
| Total nominations committee members | 5,940 | 17,875 | 28,446 | 0 | 52,261 |
| Keith William Morris | chairman | 1,540 | 4,875 | 3,242 | 0 | 9,657 |
|---|---|---|---|---|---|---|
| Davor Ivan Gjivoje Jr | member | 1,540 | 3,250 | 25,258 | 0 | 30,048 |
| Janez Komelj | external member | 0 | 6,254 | 0 | 0 | 6,254 |
| Total risk committee members | 3,080 |
| Keith William Morris | chairman | 660 | 4,875 | 1,389 | 0 | 6,924 |
|---|---|---|---|---|---|---|
| Klemen Babnik | member | 660 | 3,250 | 13 | 0 | 3,923 |
| Rok Saje | external member | 660 | 3,250 | 0 | 0 | 3,910 |
| Klara Hauko | external member | 660 | 3,250 | 0 | 0 | 3,910 |
| 2,640 | 14,625 | 1,403 | 0 | 18,668 |
|---|---|---|---|---|
As at 31 December 2023, the Company had no receivables due from the supervisory board members and had no liabilities due to any members of the supervisory board or its committees based on gross remuneration.
| EUR | Gross salary – fixed amount | Gross salary – variable amount | Benefits in kind and other benefits | Total |
|---|---|---|---|---|
| Individual employment contracts | 2,696,157 | 661,025 | 162,408 | 3,519,590 |
| EUR | Gross salary – fixed amount | Gross salary – variable amount | Benefits in kind and other benefits | Total |
|---|---|---|---|---|
| Individual employment contracts | 2,238,140 | 746,322 | 137,366 | 3,121,829 |
The average gross salary of Group companies is calculated as the sum of all costs of gross salaries of Group companies (income statement item “personnel costs”) multiplied by the number of months, divided by the total average number of employees based on the hours worked in all Group companies.
| EUR | 2023 | 2022 |
|---|---|---|
| Average monthly gross salary | 2,998 | 2,768 |
| EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|
| gross | 2,341,628 | 1,030,575 |
|---|---|---|
| gross | 75,017 | 51,397 |
|---|---|---|
| 2,416,645 | 1,081,972 |
|---|---|
| EUR | 31 December 2023 | 31 December 2022 |
|---|---|---|
| Other current liabilities | 183,074 | 156,624 |
| Contractual maturity | 31 December 2023 |
|---|---|
| Over 5 years | 0 |
| from 1 to 5 | 0 |
| Up to 1 year | 183,074 |
| Total | 183,074 |
| Contractual maturity | 31 December 2022 |
|---|---|
| Over 5 years | 0 |
| from 1 to 5 | 0 |
| Up to 1 year | 156,624 |
| Total | 156,624 |
| EUR | 2023 | 2022 |
|---|---|---|
| Insurance revenue | 63,774,722 | 57,960,701 |
| Insurance service expenses | -92,996,538 | -62,205,842 |
| Finance result from insurance contracts | -1,073,693 | -832,641 |
| Other operating expenses | -465,061 | -333,877 |
| Dividend income | 30,642,415 | 51,923,025 |
| Interest income | 71,052 | 62,605 |
| Total | -47,103 | 46,573,972 |
No material income or expenses from operations with associates are recorded in 2023 and 2022.
Disclosures relating to state-owned companies are prepared for state-owned companies that are monthly updated on the website of SSH – Equity Investments.
| EUR | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
|---|---|---|---|---|
| 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|
| Interests in companies | 2,543,434 | 3,418,761 | 2,543,434 | 3,418,761 |
| Debt securities and loans | 61,574,140 | 61,717,733 | 15,504,669 | 14,304,654 |
| Receivables due from policyholders | 1,058,180 | 457,256 | 0 | 0 |
| Total | 65,175,755 | 65,593,750 | 18,048,104 | 17,723,415 |
| 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 | |
|---|---|---|---|---|
| Liabilities for shares in claims | 3,070 | 0 | 0 | 0 |
| Total | 3,070 | 0 | 0 | 0 |
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Dividend income | 90,000 | 294,171 | 90,000 | 290,832 |
| Interest income at effective interest rate | 1,186,857 | 1,350,977 | 254,769 | 261,117 |
| Other investment income | 3,962 | 702,964 | 3,835 | 36,832 |
| Other investment expenses | -72,572 | -473,200 | -72,218 | -473,200 |
| Gross premiums written | 6,230,252 | 12,173,456 | 0 | 0 |
| Gross claims payments | -3,007,147 | -3,348,982 | 0 | 0 |
| Total | 4,431,352 | 10,699,386 | 276,386 | 115,580 |
| Borrower | Principal | Type of loan | Maturity |
|---|---|---|---|
| Sava Pokojninska (SVN) | 1,500,000 | subordinated | 28 June 2027 | 6.00% |
|---|---|---|---|---|
| Sava Osiguruvanje (MKD) | 1,300,000 | Ordinary | 20 October 2038 | 4.31% |
| Total | 2,800,000 |
On 22 February 2024, Sava Re signed a contract for the acquisition of 2.5% of the company TBS Team 24. Upon completion of the transaction on 27 February 2024, Sava Re held a 90% stake in the company.
Adriatic region. Southeast European countries along the Adriatic Sea.
Assets under management. Assets of pension companies’ pension funds, assets of mutual funds managed by the Group’s asset management company and assets of policyholders who bear the investment risk.
Book value per share. Ratio of total equity to the weighted average number of shares outstanding.
Business volume. Gross premiums written and revenue of non-insurance services.
Combined ratio. The sum of the loss ratio and the expense ratio. The Group’s ratio is calculated for the reinsurance and non-life insurance operating segments. Sava Re’s ratio does not include expenses arising from holding activities.
For the transition to IFRS 17, the Group has retained the existing net/net methodology for calculating the combined ratio. During 2023, in line with the approach of other comparable insurance companies, the Group decided to change its methodology to a net/gross calculation of the combined ratio, which is also consistent with the presentation of the income statement in accordance with IFRS 17. The revised methodology has been applied for the first time in this year’s annual report. Under the new methodology, the net reinsurance expenses are included in the numerator, while the denominator includes insurance service revenue net of the deductible reinsurance portion. Calculations using the new methodology slightly deteriorate the combined ratio, but the previous year’s combined ratio is also restated for comparison.
Contractual service margin (CSM). An estimate of the unearned profit on groups of insurance contracts that has not been recognised in the income statement at a reporting date because it relates to future services.
Cost-to-income ratio (CIR). Expense ratio for the pensions and asset management segment. It is calculated as the ratio of revenue to expenses.
Dividend yield. Ratio of dividend per share to the rolling average price per share in the 12-month period.
Emerging risks. New or previously identified risks that arise in new or unknown circumstances and whose impact is not fully known.
Euro Interbank Offered Rate (EURIBOR). This is the average reference interest rate at which banks in the euro area lend money to each other.
Exchange traded fund (ETF). Closed-end investment fund.
Expense ratio. Attributable expenses plus non-attributable expenses plus net operating income or expenses plus net other income or expenses plus net impairment losses and reversals of impairment losses on non-financial assets as a percentage of insurance revenue. The Group’s ratio is calculated for the reinsurance and non-life insurance operating segments. Sava Re’s ratio does not include expenses arising from holding activities.
FVTPL investments. Financial investments measured at fair value through profit or loss.
Gross premiums written. The total premiums on all policies written or renewed during a given period, regardless of what portions have been earned.
Highly liquid assets. These include L1A assets (ECB methodology), investments in US treasuries, investments in sovereign and supranational issuers with a credit rating of at least “AA+”, and cash and cash equivalents.
Interbank Offered Rate (IBOR). This is the average reference interest rate at which banks lend money to each other (e.g. LIBOR, EURIBOR, etc.).
Investment portfolio. It consists of financial investments, investments in associates, investment property, and cash and cash equivalents. It does not include investments of policyholders who bear the investment risk.
Loss ratio. Insurance service expenses, excluding operating expenses, plus net result from reinsurance contracts held as a percentage of insurance revenue. The Group’s ratio is calculated for the reinsurance and non-life insurance operating segments.
Net contractual service margin. Contractual service margin, net of reinsurance.
Net earnings or loss per share. Ratio of net profit or loss attributable to equity holders of the controlling company as a percentage of the weighted average number of shares outstanding. The Company and the Group have no potentially dilutive ordinary shares, therefore basic earnings per share equal diluted earnings per share.
Net investment income of the investment portfolio. The investment result plus the share of profit or loss of subsidiaries and associates. Calculated excluding returns on life insurance policies where policyholders bear the investment risk, the impact of exchange differences and expenses on subordinate debt.
NSLT – health business. Health insurance business pursued on a similar technical basis as non-life insurance.
ORSA (Own Risk and Solvency Assessment). Own assessment of the risks associated with a company’s or the Group’s business and strategic plan, and assessment of the adequacy of own funds to cover them.
Return on equity. Net profit for the period as a percentage of average equity during the period, excluding accumulated other comprehensive income.
Return on the investment portfolio. The ratio of net investment income from the investment portfolio to average invested assets. The investment portfolio position includes the following items of the statement of financial position: investment property; investments in associates and subsidiaries; financial investments, excluding unit-linked assets; and cash and cash equivalents other than those relating to unit-linked life insurance contracts. The average amount is calculated based on figures as at the reporting date and as at the end of the prior year.
SCR. Solvency capital requirement.
SLT – health business. Health insurance pursued on a similar technical basis as life insurance.
Solvency ratio. The ratio of eligible own funds as a percentage of the SCR. A solvency ratio in excess of 100% indicates that the firm has sufficient resources to meet the solvency capital requirement.
Total share return. Ratio of the share price at the end of the period, including the dividend, to the share price at the end of the previous period.
Ultimate loss. Total loss after all claims have been paid. Before the final settlement, the estimate of the ultimate loss includes reported claims and provisions for claims incurred but not reported (IBNR).
2.3, 2.7, 2.6
Sava Re
2.5, 2.6, 2.7, 13, 16.2
Sava Insurance Group
2.3, 13
Sava Insurance Group
13
Sava Insurance Group. The report does not include corrected statements.
13
2.5, 2.7, 2.8, 7, 15.2, 16.2, 13
Sava Insurance Group
9, 9.4
Sava Insurance Group
2.7, 5.3, 9.4
Sava Insurance Group
4
Sava Re
13
Sava Insurance Group
13
Sava Insurance Group
13
Sava Insurance Group
13
Sava Insurance Group
13
Evaluation of the performance of the highest governance body
13
Sava Insurance Group
Remuneration policies
5.2.2
Sava Re
Process to determine remuneration
5.2.2
Sava Re
Statement on sustainable development strategy
1
Sava Re
Policy commitments
5, 6.1, 10, 13
Sava Insurance Group
Compliance with laws and regulations
13
Sava Insurance Group
Membership associations
13
Sava Re
Approach to stakeholder engagement
3.1, 13
Sava Insurance Group
Collective bargaining agreements
9.4
Sava Insurance Group
Approach to stakeholder engagement
3.1, 13
Sava Insurance Group
Collective bargaining agreements
9
Management of material topics
5.4, 5.7, 6.4, 9, 10 13, 16.5
Sava Insurance Group
Process to determine material topics
13
Sava Insurance Group. The materiality matrix has been prepared in cooperation with the stakeholders of the Sava Insurance Group.
List of material topics
13
Management of material topics
5.4, 6.2, 9, 13
Direct economic value generated and distributed
6.2, 13
139 GRI 1-07.
Financial implications and other risks and opportunities due to climate change
8.1, 8.2, 13
Defined benefit plan obligations
13
Financial assistance received from government
5.6, 13
Management of material topics
13
Proportion of senior management hired from the local community
2.7, 5.3.4
Management of material topics
13
Infrastructure investments and services supported
13
Major indirect economic impacts
13
| 204-01 | Proportion of spending on local suppliers | Proportion not disclosed. |
|---|---|---|
| 205-01 | Operations assessed for risks related to corruption |
|---|---|
| 205-03 | Confirmed incidents of corruption and actions taken |
| 302-01 | Energy consumption within the organization |
|---|---|
| 305-01 | Direct GHG emissions |
|---|---|
| 305-02 | Indirect GHG emissions |
| 305-03 | Other indirect GHG emissions |
9
Diversity of governance bodies and employees
5.3, 9.4, 13
Basic salary factor of women is the same as that of men in all employee categories
9.4
13
Operations with local community engagement, impact assessments, and development programs
9.6, 13
13
New suppliers that were screened using social criteria
13
Contributions to political parties
13
13
Requirements for product and service information and labelling
13
13
Compliance with laws and regulations
13
Additional, complementary disclosures: breakdown of denominator of the KPI
The value in monetary amounts of derivatives:
| 0.01% | 81,019 |
|---|---|
Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
| Type | Proportion | Value |
|---|---|---|
| For non-financial undertakings: | 32.46% | 432,115,097 |
| For financial undertakings: | 7.00% | 93,147,414 |
Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
| Type | Proportion | Value |
|---|---|---|
| For non-financial undertakings: | 31.77% | 422,952,649 |
| For financial undertakings: | 6.28% | 83,557,954 |
Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
| Type | Proportion | Value |
|---|---|---|
| For non-financial undertakings: | 16.61% | 221,050,822 |
| For financial undertakings: | 8.14% | 108,328,136 |
Value of exposures to other counterparties:
| 35.80% | 476,566,883 |
|---|---|
Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities:
| 8.07% | 107,450,260 |
|---|---|
Value of all the investments that are funding economic activities that are not Taxonomy-eligible:
| 28.51% | 379,497,374 |
|---|---|
Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned:
| 13.63% | 181,393,036 |
|---|---|
Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
| Type | Basis | Proportion | Value |
|---|---|---|---|
| For non-financial undertakings: | Turnover-based: | 1.57% | 20,940,563 |
| Capital expenditures-based: | 2.87% | 38,223,676 | |
| For financial undertakings: | Turnover-based: | 0.00% | 25,061 |
| Capital expenditures-based: | 0.00% | 15,265 |
17,948,718
76.80%
29,367,153
0%
0.00
0%
0.00
92.76%
96.46%
8.53%
4.66%
0.00%
0.00%
0.75%
0.37%
0.00%
0.00%
405
0.02%
24,886
14.79%
21,385,441
3.25%
4,698,321
13.74%
19,873,297
1.96%
2,841,908
13.24%
19,149,915
21.68%
| Value of exposures to other counterparties: | 47.05% | 68,045,680 |
|---|---|---|
| Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: | 12.03% | 17,404,067 |
|---|---|---|
| Value of all the investments that are funding economic activities that are not Taxonomy-eligible: | 24.12% | 34,882,288 |
|---|---|---|
| Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned: | 7.06% | 10,204,781 |
|---|---|---|
| Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | |||||
|---|---|---|---|---|---|
| For non-financial undertakings: | |||||
| Turnover-based: | 3.36% | 4,866,905 | |||
| Capital expenditures-based: | 5.34% | 7,717,797 | |||
| For financial undertakings: | |||||
| Turnover-based: | 0.00% | 606 | |||
| Capital expenditures-based: | 0.00% | 255 |
| Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: | |||||
|---|---|---|---|---|---|
| Turnover-based: | 100% | 4,867,511 | |||
| Capital expenditures-based: | 100% | 7,718,052 |
| Value of Taxonomy-aligned exposures to other counterparties over total assets covered by the KPI: | |||
|---|---|---|---|
| Turnover-based: | 0% | 0 | |
| Capital expenditures-based: | 0% | 0 |
| (1) Climate change mitigation | Turnover: | 99.32% |
|---|---|---|
| Capital expenditures: | 99.85% | |
| Transitional activities | Turnover: | 7.67% |
| Capital expenditures: | 2.45% | |
| Enabling activities | Turnover: |
| Economic activities (1) | Absolutepremiums, year t (2) | Proportion ofpremiums, year t (3) | Proportion ofpremiums, year t – 1 (4) | Climate changemitigation (5) | Waterand marine resources (6) | Circular economy (7) | Pollution (8) | Biodiversityand ecosystems (9) | Minimum safeguards (10) | Currency |
|---|---|---|---|---|---|---|---|---|---|---|
| A.1 Non-life insuranceand reinsurance underwriting Taxonomy-aligned activities (environmentally sustainable) | 484,097,150 | 69.54% | 91.60% | - | - | - | - | - | - | % |
| A.1.1. Of whichreinsured | 93,201,092 | 13.39% | 0.00% | - | - | - | - | - | - | % |
| A.1.2. Of whichstemming from reinsurance activity | 63,110,317 | 9.07% | 0.00% | - | - | - | - | - | - | % |
| A.1.2.1. Of whichreinsured (retrocession) | 11,604,573 | 1.67% | 0.00% | - | - | - | - | - | - | % |
| A.2. Non-life insuranceand reinsurance underwriting Taxonomy-eligible but not environmentallysustainable activities (not Taxonomy-aligned activities) | 4,162,083 | 0.60% | 0.40% | % |
| 207,880,902 | 29.86% | 8.00% | |
|---|---|---|---|
| Total (A.1 + A.2 + B) | 696,140,135 | 100% | 100.00% |
The following two tables show the term structures of interest rates for the most important currencies and insurance and reinsurance contract portfolios for the Group and the Company, respectively. These structures are used to calculate the adjustment that reflects the time value of money and financial risks (for the calculation of discount rates).
| Currency | EUR | USD | MKD | RSD |
|---|---|---|---|---|
| Measurement date / year | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
| 1 | 3.54% | 3.49% | 4.91% | 5.26% |
| 1 | 3.54% | 3.49% | 5.84% | 5.94% |
| 2 | 2.99% | 3.63% | 4.32% | 4.86% |
| 2 | 2.99% | 3.63% | 5.93% | 6.78% |
| 3 | 2.80% | 3.55% | 4.00% | 4.54% |
| 3 | 2.80% | 3.55% | 6.31% | 7.53% |
| Currency | EUR | RSD |
|---|---|---|
| Measurement date / year | 31 December 2023 | 31 December 2022 |
| 1 | 3.64% | 3.65% |
| 2 | 6.16% | 6.34% |
| 3.73% | 6.84% | 8.11% | 4 | |
|---|---|---|---|---|
| 2.74% | 3.52% | 3.85% | 4.39% | |
| 2.74% | 3.52% | 6.61% | 8.05% | 4 |
| 2.93% | 3.71% | 7.19% | 8.70% | 5 |
| 2.73% | 3.52% | 3.78% | 4.32% | |
| 2.73% | 3.52% | 6.83% | 8.26% | 5 |
| 2.93% | 3.72% | 7.44% | 8.93% | 6 |
| 2.74% | 3.50% | 3.76% | 4.23% | |
| 2.74% | 3.50% | 7.05% | 8.36% | 6 |
| 2.95% | 3.70% | 7.69% | 9.05% | 7 |
| 2.76% | 3.48% | 3.77% | 4.21% | |
| 2.76% | 3.48% | 7.28% | 8.42% | 7 |
| 2.97% | 3.69% | 7.95% | 9.12% | 8 |
| 2.78% | 3.49% | 3.78% | 4.19% | |
| 2.78% | 3.49% | 7.50% | 8.48% | 8 |
| 3.00% | 3.69% | 8.19% | 9.19% | 9 |
| 2.81% | 3.49% | 3.81% | 4.19% | |
| 2.81% | 3.49% | 7.66% | 8.54% | 9 |
| 3.03% | 3.70% | 8.36% | 9.26% | 10 |
| 2.84% | 3.52% | 3.84% | 4.26% |
|---|---|---|---|
| 2.84% | 3.52% | 7.78% | 8.62% |
| 10 | 3.06% | 3.73% | 8.50% |
| 9.34% | 15 | 2.92% | 3.44% |
| 3.96% | 4.28% | 2.92% | 3.44% |
| 7.83% | 8.51% | 15 | |
| 3.15% | 3.66% | 8.53% | 9.20% |
| 20 | 2.87% | 3.19% | 3.99% |
| 4.21% | 2.87% | 3.19% | 7.51% |
| 8.07% | 20 | 3.10% | 3.41% |
| 8.13% | 25 | 2.88% | 3.10% |
| 3.89% | 3.98% | 2.88% | 3.10% |
| 7.13% | 7.60% | 25 | 3.10% |
| 3.30% | 7.67% | 8.13% | 30 |
| 2.92% | 3.09% | 3.81% | 3.81% |
| 2.92% | 3.09% | 6.79% | 7.19% |
| 30 | 3.12% | 3.27% | 7.25% |
| 7.65% | 35 | 2.97% | 3.10% |
| 3.76% | 3.61% | 2.97% | 3.10% |
| 6.50% | 6.85% | 35 | 3.15% |
| 3.27% | 6.90% | 7.24% | 40 |
| 3.02% | 3.13% | 3.72% | 3.43% |
| Currency | Measurement date / year | 1 | 2 | 3 |
|---|---|---|---|---|
| EUR | 31 December 2023 | 3.54% | 2.99% | 2.80% |
| EUR | 31 December 2022 | 3.49% | 3.63% | 3.55% |
| USD | 31 December 2023 | 4.91% | 4.32% | 4.00% |
| USD | 31 December 2022 | 5.26% | 4.86% | 4.54% |
| KRW | 31 December 2023 | 3.69% | 3.59% | 3.50% |
| KRW | 31 December 2022 | 4.43% | 4.22% | 4.13% |
| CNY | 31 December 2023 | 1.73% | 2.06% | 2.29% |
| CNY | 31 December 2022 | 2.15% | 2.37% | 2.64% |
| INR | 31 December 2023 | 8.25% | 8.52% | 8.62% |
| INR | 31 December 2022 | 8.05% | 8.27% | 8.48% |
| 4 | 2.74% | 3.52% | 3.85% | 4.39% | 3.50% | 4.08% | 2.49% | 2.84% | 8.69% | 8.61% |
|---|---|---|---|---|---|---|---|---|---|---|
| 5 | 2.73% | 3.52% | 3.78% | 4.32% | 3.48% | 4.02% | 2.65% | 2.99% | 8.73% | 8.69% |
| 6 | 2.74% | 3.50% | 3.76% | 4.23% | 3.47% | 3.98% | 2.75% | 3.11% | 8.77% | 8.75% |
| 7 | 2.76% | 3.48% | 3.77% | 4.21% | 3.47% | 3.96% | 2.82% | 3.21% | 8.82% | 8.79% |
| 8 | 2.78% | 3.49% | 3.78% | 4.19% | 3.48% | 3.95% | 2.89% | 3.29% | 8.87% | 8.83% |
| 9 | 2.81% | 3.49% | 3.81% | 4.19% | 3.49% | 3.94% | 2.94% | 3.37% | 8.93% | 8.87% |
| 10 | 2.84% | 3.52% | 3.84% | 4.26% | 3.49% | 3.92% | 3.00% | 3.43% | 8.97% | 8.90% |
| 15 | 2.92% | 3.44% | 3.96% | 4.28% | 3.47% | 3.76% | 3.26% | 3.66% | 8.80% | 8.72% |
| Name and type of fund | Sava Insurance Group company managing the fund | Net asset value as at 31 December 2023 |
|---|---|---|
| Infond Umbrella Fund | Sava Infond, Družba za Upravljanje d.o.o. | 628,604,240 |
| Infond Dividendni, equity sub-fund of developed markets | Sava Infond, Družba za Upravljanje d.o.o. | 9,279,123 |
Sava Infond, Družba za Upravljanje d.o.o.
22,158,465
Sava Infond, Družba za Upravljanje d.o.o.
11,102,974
Sava Infond, Družba za Upravljanje d.o.o.
30,941,939
Sava Infond, Družba za Upravljanje d.o.o.
65,297,706
Sava Infond, Družba za Upravljanje d.o.o.
20,611,534
Sava Infond, Družba za Upravljanje d.o.o.
75,748,265
Sava Infond, Družba za Upravljanje d.o.o.
3,091,732
Sava Infond, Družba za Upravljanje d.o.o.
26,155,268
Sava Infond, Družba za Upravljanje d.o.o.
2,650,642
Sava Infond, Družba za Upravljanje d.o.o.
3,892,070
Sava Infond, Družba za Upravljanje d.o.o.
8,502,518
Sava Infond, Družba za Upravljanje d.o.o.
95,102,387
Sava Infond, Družba za Upravljanje d.o.o.
17,419,170
Sava Infond, Družba za Upravljanje d.o.o.
10,651,108
Sava Infond, Družba za Upravljanje d.o.o.
145,396,112
Sava Infond, Družba za Upravljanje d.o.o.
28,602,571
Sava Infond, Družba za Upravljanje d.o.o.
15,029,303
Sava Infond, Družba za Upravljanje d.o.o.
36,971,353
Sava Penzisko Društvo a.d.
966,588,349
Sava Penzisko Društvo a.d.
28,628,715
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