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Pozavarovalnica Sava
Earnings Release • Mar 11, 2019
1987_rns_2019-03-11_52a29829-300d-4cc9-ac4a-be6bcbeb8899.pdf
Earnings Release
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a 2018 unaudited results and 2019 plan Sava Re Group
8 March 2019
unaudited results
Highlights of 2018
Premium growth of 6%, growth in operating revenues of 10%
Record profit of €43 million and 13.1% return on equity (lower end of target range exceeded by 2.1 p.p.)
Benign year in terms of claims – combined ratio of 92.9% at a record low
Improved credit ratings by Standard & Poor's and AM Best from "A-" to "A", outlook stable
Four companies added to the Sava Re Group: TBS Team 24, Sava Penzisko Društvo, Energoprojekt Garant (merged with the Serbian insurer in December 2018), and Sava Terra
Signed deals for the acquisition of the Croatian companies ERGO Osiguranje and Ergo Životno Osiguranje, and Slovenia-based KBM Infond
*Unaudited data.
v
Achievement of the 2018 plan
| 2017 | 2018 plan | Unaudited 2018* | |
|---|---|---|---|
| Group | |||
| Gross premiums written | €517.2 m | > €520 m | €31.1 m |
| Profit or loss, net of tax | €31.1 m | > €505 m | €31.1 m |
| Return on equity | 10.1% | > 11% | 13.1% |
| v Investment return** |
2.0% | 1.7% | 1.7% |
| Book value per share | €20.40 | n.a. | €21.95 |
| (Re)insurance part (+ annuities) |
|||
| Net expense ratio (reins. + non-life + life) | 32.6% | 31.4‒31.7% | 33.1% |
| Net incurred loss ratio** (reins. + non-life) | 60.5% | 59.4‒59.9% | 57.0% |
| Net combined ratio** (reins. + non-life) | 95.6% | 94.0‒94.5% | 92.9% |
** Excluding the effect of exchange differences. *Unaudited data.
2018 – Growth in consolidated gross premiums written
*Unaudited data.
2018 – Strong growth in GPW in all insurance markets
Insurance and pension companies Reinsurance company
Global markets (Sava Re reinsurance premiums in global markets) Non-Group premiums: €89.3 m 18/17: -7.2%
Unaudited data.
plan
Key targets of the 2019 plan
Insurance business
Client focus, digitisation of operations, development of innovative services and insurance products, assistance services in connection with insurance products, preparing for implementation of IFRS 9 and 17
Reinsurance business
Growth especially in Latin American markets, preparing for implementation of IFRS 9 and 17
Pensions
Active approach to the marketing and promotion of increasing individuals' contributions to pension funds
v Ancillary services
Development of the assistance segment in Slovenia as well as in other markets; health and home assistance in addition to motor assistance
Capital growth and utilisation
Exploring new growth opportunities (in line with the strategy) in insurance markets and ancillary business viewed by clients as additional services
Key performance indicators of the Sava Re Group plan
- Return on equity > 12.0%
- Growth in Group income > 4.5%
- Solvency ratio between 170% and 200%
Key performance indicators of the 2019 Group plan
| € million | 2017 | Unaudited 2018* |
2019 plan |
|---|---|---|---|
| Group | |||
| Operating revenues | 492.4 | 540.5 | > 4.5% growth |
| Profit or loss, net of tax | 31.1 | 43.0 | > €43 m; > 10% growth based on 2018 estimate |
| Return on equity | 10.1% | 13.1% | > 12% |
| v Return on investments** |
2.0% | 1.7% | 1.7% |
| (Re)insurance part (+ annuities) |
|||
| Gross premiums written | 517.2 | 546.3 | > €555 m |
| Net premiums earned | 470.9 | 504.7 | > €515 m |
| Net expense ratio (reins. + non-life + life) | 32.6% | 33.1% | 32.4–33.0% |
| Net incurred loss ratio** (reins. + non-life) | 60.5% | 57.0% | 59.2–59.7% |
| Net combined ratio** (reins. + non-life) | 95.6% | 92.9% | 93.6–94.1% |
| **Excluding the effect of FX differences. | *Unaudited data. |
Consolidated gross premiums written and revenue of non-insurance companies
The 2019 plan does not include the companies KBM Infond, ERGO Osiguranje and ERGO Životno Osiguranje.
Thank you for your attention.
Disclaimer
Forward-looking statements
This document may contain forward-looking statements relating to Sava Re's expectations, plans or goals, which are based on assumptions made by Sava Re management. By their nature, forward-looking statements involve risk and uncertainty. As a result, actual developments, in particular performance, may differ materially from the expectations, plans and goals set out in this document; therefore, persons should not rely on forward-looking statements.
Duty to update
Sava Re assumes no obligation to adjust any forward-looking statements or other information contained in this document to future events or developments.