Pozavarovalnica Sava

Earnings Release • Mar 8, 2021

Unaudited financial statements of the Sava Insurance Group 2020

Ljubljana, 5 March 2021

Key unaudited figures of the Sava Insurance Group

EUR, except percentages	2020	2019
Total of all operating segments
Operating revenue	674,902,104	584,178,117
Year-on-year change	15.5%	9.9%
Profit or loss before tax	67,746,715	60,744,015
Year-on-year change	11.5%	9.9%
Profit or loss, net of tax	56,386,299	50,194,588
Year-on-year change	12.3%	16.7%
Comprehensive income	75,783,096	59,589,361
Year-on-year change	27.2%	63.5%
Return on revenue*	8.6%	8.6%
Net expense ratio, including operating revenue/**	29.5%	31.6%
Return on equity	13.3%	13.8%
Earnings or loss per share	3.63	3.22
Return on the investment portfolio/*	1.6%	1.9%
Reinsurance + non-life
Gross premiums written	546,242,406	508,530,894
Year-on-year change	7.4%	11.2%
Net incurred loss ratio*	61.6%	61.7%
Net expense ratio	31.1%	32.3%
Net combined ratio*	93.9%	93.8%
Profit or loss before tax	41,069,221	40,460,026
Year-on-year change	1.5%	-0.9%
Life
Gross premiums written	130,266,058	87,668,880
Year-on-year change	48.6%	0.9%
Net expense ratio	23.0%	28.9%
Profit or loss before tax	27,284,252	16,593,299
Year-on-year change	64.4%	34.3%
Total of all operating segments	31 December 2020	31 December 2019
Total assets	2,467,251,303	1,885,953,003
Change on 31 December of prior year	30.8%	10.5%
Shareholders' equity	460,214,488	384,776,847
Change on 31 December of prior year	19.6%	13.1%
Net technical provisions	1,600,307,265	1,115,945,868
Change on 31 December of prior year	43.4%	1.2%
Book value per share	29.70	24.83
Number of employees (full-time equivalent basis)	2,690.7	2,723.3
Solvency ratio under Solvency II rules	-	220.0%

* Effect of exchange differences excluded.

** Subordinated debt expenses excluded. In 2020, impairment losses on goodwill are also excluded.

*** Exclusive of extraordinary income on acquisition of companies (2020: Vita, 2019: ERGO) and amortisation of client list.

Unaudited financial statements of the Sava Insurance Group

			Unaudited statement of financial position
--	--	--	-------------------------------------------	--

2020 2019 ASSETS 2,467,251,303 1,885,953,003 Intangible assets 64,278,611 61,060,069 Property, plant and equipment 48,336,491 47,615,710 Right-of-use assets 8,648,594 9,974,252 Deferred tax assets 4,924,819 2,044,124 Investment property 16,121,079 16,695,132 Financial investments in subsidiaries and associates 15,056,143 581,104 Financial investments: 1,430,149,336 1,064,874,239 - Loans and deposits 31,796,178 53,363,639 - Held to maturity 43,679,425 41,586,644 - Available for sale 1,327,264,062 943,663,578 - At fair value through profit or loss 27,409,671 26,260,378 Assets held for the benefit of policyholders who bear the investment risk 411,224,812 213,159,889 Reinsurers' share of technical provisions 42,609,217 38,620,539 Investment contract assets 158,765,028 151,197,102 Receivables 153,871,498 159,413,917 Receivables arising out of primary insurance business 135,285,588 139,954,356 Receivables arising out of reinsurance and co-insurance business 6,054,576 6,734,564 Current tax assets 529,831 3,002,507 Other receivables 12,001,503 9,722,490 Deferred acquisition costs 24,278,003 23,500,521 Other assets 4,240,414 2,841,516 Cash and cash equivalents 83,458,594 93,804,031 Non-current assets held for sale 1,288,664 570,858 EQUITY AND LIABILITIES 2,467,251,303 1,885,953,003 Shareholders' equity 460,214,488 384,776,847 Share capital 71,856,376 71,856,376 Capital reserves 43,035,948 43,035,948 Profit reserves 202,285,580 202,170,501 Own shares -24,938,709 -24,938,709 Fair value reserve 40,173,090 20,718,610 Reserve due to fair value revaluation 964,485 924,038 Retained earnings 73,413,529 42,128,483 Net profit or loss for the period 56,197,540 31,546,718 Translation reserve -3,266,013 -3,168,414 Equity attributable to owners of the controlling company 459,721,826 384,273,551 Non-controlling interests in equity 492,662 503,296 Subordinated liabilities 74,804,974 74,822,710 Technical provisions 1,233,312,054 933,952,709 Unearned premiums 210,614,842 207,895,397 Technical provisions for life insurance business 465,641,679 211,877,103 Provision for outstanding claims 547,764,679 502,914,277 Other technical provisions 9,290,854 11,265,932 Technical provisions for the benefit of life insurance policyholders who bear the investment risk 409,604,428 220,613,698 Other provisions 9,287,735 8,705,469 Deferred tax liabilities 14,901,575 5,294,664 Investment contract liabilities 158,596,453 151,040,643 Other financial liabilities 470,937 355,908 Liabilities from operating activities 58,412,273 61,290,549 Liabilities from primary insurance business 46,269,833 50,356,998 Liabilities from reinsurance and co-insurance business 6,837,159 9,300,437 Current income tax liabilities 5,305,281 1,633,114 Lease liability 8,255,225 10,448,915	EUR	31 December	31 December
	Other liabilities	39,391,161	34,650,891

Unaudited income statement

EUR	1–12/2020	1–12/2019
Net premiums earned	635,361,568	548,040,035
Gross premiums written	679,749,305	598,526,157
Written premiums ceded to reinsurers and co-insurers	-41,050,900	-36,146,607
Change in gross unearned premiums	-2,216,711	-19,266,582
Change in unearned premiums, reinsurers' and co-insurers' shares	-1,120,126	4,927,067
Income from investments in subsidiaries and associates	142,088	2,717,909
Profit from investments in equity-accounted associate companies	142,088	0
Other income	0	2,717,909
Investment income	26,449,203	20,273,977
Interest income	16,151,438	14,016,424
Other investment income	10,297,765	6,257,553
Net unrealised and realised gains on investments of life insurance policyholders who bear the	23,043,525	23,278,584
investment risk
Other technical income	14,544,056	12,736,452
Commission income	5,899,388	4,291,946
Other technical income	8,644,668	8,444,506
Other income	30,895,868	27,693,576
Net claims incurred	-426,695,412	-399,191,460
Gross claims payments, net of income from recourse receivables	-399,532,382	-392,032,235
Reinsurers' and co-insurers' shares	5,199,171	10,559,367
Change in the gross provision for outstanding claims	-36,154,019	-23,869,642
Change in the provision for outstanding claims, reinsurers' and co-insurers' shares	3,791,818	6,151,050
Change in other technical provisions	40,613,572	46,506,883
Change in technical provisions for policyholders who bear the investment risk	-35,479,642	-12,825,182
Expenses for bonuses and rebates	-103,253	227,917
Operating expenses	-203,216,146	-186,955,234
Acquisition costs	-74,410,866	-65,793,677
Change in deferred acquisition costs	1,561,215	2,908,414
Other operating expenses	-130,366,495	-124,069,971
Expenses for investments in associates and impairment losses on goodwill	-2,096,868	-54,721
Impairment loss on goodwill	-2,096,868	0
Loss arising out of investments in equity-accounted associate	0	-54,721
Expenses for financial assets and liabilities	-13,122,281	-1,707,664
Impairment losses on financial assets not at fair value through profit or loss	-1,099,794	0
Interest expense	-3,152,597	-682,017
Other investment expenses	-8,869,890	-1,025,647
Other technical expenses	-19,324,402	-15,435,751
Other expenses	-3,265,162	-4,561,305
Profit or loss before tax	67,746,714	60,744,016
Income tax expense	-11,360,415	-10,549,428
Net profit or loss for the period	56,386,299	50,194,588
Net profit or loss attributable to owners of the controlling company	56,222,528	49,977,170
Net profit or loss attributable to non-controlling interests	163,771	217,418
Earnings per share (basic and diluted)	3.63	3.22