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Pozavarovalnica Sava
Earnings Release • May 19, 2025
1987_rns_2025-05-19_a04f579c-8fe1-4be5-ae61-fb6d020e2a77.pdf
Earnings Release
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Presentation of results 1–3/2025 Sava Insurance Group
16 May 2025
CONTENTS
- Group results
- Segment reporting
- Financial investments
- Sava Re share and dividend policy
- Solvency position
GROUP RESULTS
Performance highlights
Sava Insurance Group / Presentation of results 1–3/2025 / Group results 4
Net profit of €30.9m (1–3/2024: €29.8m)
Growth in gross written premiums of 6.5%
strongest growth in motor business, reflecting higher average premiums and more policies sold, and in life insurance, driven by higher sales of new policies and additional payments on existing policies
Improved insurance result: revenue growth
Lower finance result: less favourable equity market developments
| €m, except % |
1–3/2024 | 1–3/2025 | 2025 plan | Change 2025/2024 |
|---|---|---|---|---|
| Business volume | 307.8 | 328.7 | growth > 5% |
6.8% |
| Gross premiums written | 301.0 | 320.4 | 6.5% | |
| Profit, net of tax |
29.8 | 30.9 | > 84 | 3.7% |
| Return on equity* | 18.0% | 17.2% | > 11% | -0.9 pp |
| Combined ratio (non-life and reinsurance) | 83.8% | 83.7% | < 94% | -0.1 pp |
| Loss ratio (non-life and reinsurance) | 57.9% | 57.3% | -0.6 pp | |
| Expense ratio (non-life and reinsurance) | 25.8% | 26.3% | +0.5 pp | |
| Return on the investment portfolio | 2.7% | 2.0% | -0.7 pp | |
| 31/12/2024 | 31/3/2025 | P31/12/2025 | ||
| Equity | 648.6 | 681.3 | 5.0% | |
| Net contractual service margin (CSM) – life |
161.0 | 161.8 | 0.5% | |
| Total investment portfolio | 1,666.9 | 1,696.2 | 1.8% | |
| Assets for the benefit of policyholders who bear the investment risk | 764.3 | 751.8 | -1.6% | |
| Assets in pension company savings funds | 1,382.2 | 1,397.5 | 1.1% | |
| Assets under management at fund management company | 742.9 | 710.0 | -4.4% | |
| €m, except % |
1–3/2024 | 1–3/2025 | 2025 plan | Change 2025/2024 |
|---|---|---|---|---|
| Business volume | 307.8 | 328.7 | growth > 5% |
6.8% |
| Gross premiums written | 301.0 | 320.4 | 6.5% | |
| Profit, net of tax |
29.8 | 30.9 | > 84 | 3.7% |
| Return on equity* | 18.0% | 17.2% | > 11% | -0.9 pp |
| Combined ratio (non-life and reinsurance) | 83.8% | 83.7% | < 94% | -0.1 pp |
| Loss ratio (non-life and reinsurance) | 57.9% | 57.3% | -0.6 pp | |
| Expense ratio (non-life and reinsurance) | 25.8% | 26.3% | +0.5 pp | |
| Return on the investment portfolio | 2.7% | 2.0% | -0.7 pp | |
| 31/12/2024 | 31/3/2025 | P31/12/2025 | ||
| Equity | 648.6 | 681.3 | 5.0% | |
| Net contractual service margin (CSM) – life |
161.0 | 161.8 | 0.5% | |
| Total investment portfolio | 1,666.9 | 1,696.2 | 1.8% | |
| Assets for the benefit of policyholders who bear the investment risk | 764.3 | 751.8 | -1.6% | |
| Assets in pension company savings funds | 1,382.2 | 1,397.5 | 1.1% | |
| Assets under management at fund management company | 742.9 | 710.0 | -4.4% | |
| Net liabilites from insurance and reinsurance contracts | 1,747.0 | 1,722.4 | -1.4% |
Key figures
* Annualised.
Growth across all operating segments
Business volume: growth in all operating segments
Profit before tax: first quarter traditionally strong
Profit before tax: improvement in most segments
Combined ratio broadly unchanged
Sava Insurance Group / Presentation of results 1–3/2025 / Group results 10
Combined ratio (non-life and reinsurance)
CSM: new business CSM up 9.6% on stronger sales
Sava Insurance Group / Presentation of results 1–3/2025 / Group results 11
The change in expected cash flows in both years is related to equity market performance (favourable in 2024 and unfavourable in 2025), which affected the value of unit-linked assets and therefore future revenue from the management of these assets.
SEGMENT REPORTING
Non-life EU: premium growth
Life EU: strong revenue growth
Non-life non-EU: strong premium growth
-
Life non-EU: revenue growth
Sava Insurance Group / Presentation of results 1–3/2025 / Segment reporting 17
growth
Pensions and asset management: robust growth in fund inflows
Funds inflows (€m) AuM in pension savings funds and asset management funds progression (€m)
"Other" segment
FINANCIAL INVESTMENTS
Assets under management impacted by adverse equity markets
Sava Insurance Group / Presentation of results 1–3/2025 / Financial investments 21
Investment portfolio and assets under management (consolidated) (€m)
| €m | 31/12/2024 | 31/3/2025 | Change | Index |
|---|---|---|---|---|
| Investment portfolio |
1,666.9 | 1,696.2 | 29.3 | 101.8 |
| €m | 1–3/2024 | 1–3/2025 | Change | Index |
| Net investment income |
9.9 | 8.4 | -1.5 | 84.7 |
| Interest income |
6.4 | 7.5 | 1.1 | 117.1 |
| Change in fair value of FVTPL assets | 2.1 | 0.1 | -2.0 | 6.1 |
| Dividends of equity investments and income of alternative funds | 0.6 | 0.3 | -0.4 | 44.8 |
| Income from associate companies |
0.8 | 0.5 | -0.3 | 63.1 |
| Other income/expenses from investments | -0.1 | 0.0 | 0.0 | 63.6 |
| Rate of return |
2.7% | 2.0% | -0.7 pp | - |
Investment return impacted by less favourable US equity markets
Sava Insurance Group / Presentation of results 1–3/2025 / Financial investments 22
| /12/2024 | 31/3/2025 | Change | Index |
|---|---|---|---|
| 1,666.9 | 1,696.2 | 29.3 | 101.8 |
| -3/2024 | 1-3/2025 | Change | Index |
| 9.9 | 8.4 | -1.5 | 84.7 |
| 6.4 | 7.5 | 1.1 | 117.1 |
| 2.1 | 0.1 | -2.0 | 6.1 |
| 0.6 | 0.3 | -0.4 | 44.8 |
| 0.8 | 0.5 | -0.3 | 63.1 |
| -0.1 | 0.0 | 0.0 | 63.6 |
| 2.7% | 2.0% - | -0.7 pp |
The investment portfolio and net investment income are shown net of the assets held for the benefit of policyholders who bear the investment risk.
| €m | 31/12/2024 | 31/3/2025 | Difference | |
|---|---|---|---|---|
| Fixed-rate investments |
1,453.5 | 1,473.9 | 20.4 | |
| Government bonds | 922.7 | 933.4 | 10.7 | |
| Corporate and financial bonds | 503.4 | 511.7 | 8.3 | |
| Deposits | 27.3 | 28.7 | 1.4 | |
| Shares and mutual funds | 44.4 | 49.7 | 5.2 | |
| Shares | 23.5 | 26.1 | 2.6 | |
| Mutual funds |
20.9 | 23.6 | 2.6 | |
| Alternative funds | 72.4 | 72.4 | 0.1 | |
| Investment property | 24.1 | 23.4 | -0.8 | |
| Cash and cash equivalents | 46.2 | 50.2 | 3.9 | |
| Investments in associated companies |
25.6 | 26.1 | 0.5 | |
| Other | 0.7 | 0.6 | 0.0 | |
| Total investment portfolio |
1,666.9 | 1,696.3 | 29.3 |
Large share of fixed-rate investments
Sava Insurance Group / Presentation of results 1–3/2025 / Financial investments 23
- Maintaining a safe and liquid portfolio by investing in highly rated government and corporate bonds
- Reinvestment yield for the first quarter at approximately 2.8%
The investment portfolio is shown net of the assets held for the benefit of policyholders who bear the investment risk.
Large share of government bonds
Sava Insurance Group / Presentation of results 1–3/2025 / Financial investments 24
Composition of fixed-rate investments
The fixed-rate investment portfolio is shown net of the assets held for the benefit of policyholders who bear the investment risk.
| €m | 31/12/2024 | 31/3/2025 | Difference | |
|---|---|---|---|---|
| Fixed-rate investments |
1,453.5 | 1,473.9 | 20.4 | |
| Government bonds |
922.7 | 933.4 | 10.7 | |
| Corporate and financial bonds |
427.2 | 437.1 | 9.9 | |
| Covered bonds |
57.2 | 56.6 | -0.6 | |
| Subordinated bonds |
19.0 | 18.0 | -1.0 | |
| Deposits | 27.3 | 28.7 | 1.4 |
The fixed-rate investment portfolio is shown net of the assets held for the benefit of policyholders who bear the investment risk.
Sava Insurance Group / Presentation of results 1–3/2025 / Financial investments 25
SAVA RE SHARE AND DIVIDEND POLICY
Shareholders and share trading
Sava Insurance Group / Presentation of results 1–3/2025 / Sava Re share and dividend policy
| 31/3/2025 | |
|---|---|
| Trading symbol |
POSR |
| Market capitalisation (€m) |
750.1 |
| No. of shares issued |
17,219,662 |
| No. of treasury shares |
1,721,966 |
| No. of shareholders | 4,512 |
High dividend yield
Sava Insurance Group / Presentation of results 1–3/2025 / Sava Re share and dividend policy 28
Dividend policy: distribution between 35% and 45% of the net profit of the Sava Insurance Group
Proposed dividend payout in 2025 in respect of the 2024 profit: €34,869,816.00 or €2.25 gross per share. The general meeting of shareholders will be held on 26 May 2025.
* The dividend yield has been calculated using the average share price over the trailing 12 months (1 April 2024 – 31 March 2025).
SOLVENCY POSITION
Strong solvency position
For more information: [email protected]
Thank you.
Cautionary statements and notes
Forward-looking statements
This document may contain forward-looking statements relating to the expectations, plans or goals of the Sava Insurance Group (the Group), which are based on estimates and assumptions made by the management of Sava Re (the Company). By their nature, forward-looking statements involve known and unknown risks and uncertainties. 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
The Group and the Company assume no obligation to update or revise any forward-looking statements or other information contained in this document, except to the extent required by applicable laws and regulations.
Alternative performance measures
This document may contain certain alternative performance measures used by the Company's management to monitor the business, financial performance and financial position of the Group and to provide investors with additional information that management believes may be useful and relevant to understanding the Group's results. These alternative performance measures or benchmarks generally do not have a standardised meaning and therefore may not be comparable to similarly defined benchmarks used by other companies. Therefore, such measures should not be considered in isolation from, or in place of, the Group's consolidated financial statements and the related notes prepared in accordance with IFRS standards.
Data not audited
The consolidated financial statements presented in this document are unaudited.
Rounding
All calculations are based on exact figures, including decimals, which is why rounding differences may occur.
