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Pozavarovalnica Sava
Investor Presentation • May 20, 2024
1987_rns_2024-05-20_48854c6e-d003-4a3c-a650-68f573ed1cb6.pdf
Investor Presentation
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Presentation of results 1–3/2024 Sava Insurance Group
17 May 2024
CONTENTS
- Group results
- Segment reporting
- Financial investments
- POSR share and dividend policy
- Solvency position
GROUP RESULTS
Performance highlights
Sava Insurance Group / Presentation of results 1–3/2024 / Group results 4
Net profit of €29.8m (1–3/2024: €20.1m)
Growth in gross premiums written of 18.3%
primarily in motor business, due to growth in average premiums and the number of policies sold
and in life business, due to improved sales of unitlinked policies, both new policies and additional premiums on existing policies
Better insurance service result: higher revenue and favourable claims experience
Better investment result: investment at higher interest rates
Key figures
| €m, except % |
|---|
| -------------- |
* Return on equity excludes accumulated other comprehensive income/loss. Investment portfolio return excludes subordinated debt expense.
| €m % , except |
1–3/2023 | 1–3/2024 | plan 2024 |
Change 2024/2023 |
|---|---|---|---|---|
| volume Business |
259 9 |
307 8 |
925 > |
18 4% |
| Gross premiums written |
254 4 |
301 0 |
18 3% |
|
| Profit of , net tax |
20 1 |
29 8 |
70 > |
3% 48 |
| equity* Return on |
13 4% |
18 0% |
10 5% > |
+4 6 pp |
| (non -life reinsurance) Combined and ratio |
88 9% |
83 8% |
95% < |
2 -5 pp |
| portfolio* the investment Return on |
2% 2 |
7% 2 |
2% 2 |
+0 5 pp |
| 31/12/2023 | 31/3/2024 | 31/12/P2024 | ||
| Equity | 585 7 |
610 6 |
3% 4 |
|
| (CSM) contractual service margin Net |
149 4 |
161 7 |
3% 8 |
|
| Total portfolio investment |
1 503 3 , |
1 532 1 , |
9% 1 |
|
| for the benefit of policyholders who bear the risk Assets investment |
608 5 |
669 5 |
10 0% |
|
| funds in pension savings Assets company |
1 174 7 , |
235 2 1 , |
2% 5 |
|
| under fund Assets management at management company |
541 8 |
613 9 |
3% 13 |
Continued strong growth across all operating segments
Business volume: organic growth and inflationary price adjustments
Profit before tax: high revenue growth and favourable claims experience
Profit before tax: high revenue growth and favourable claims experience
Continued CSM growth
SEGMENT REPORTING
Non-life EU: high premium growth and favourable claims experience
Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 12
• Growth mainly in private motor, driven by inflationary price adjustments and growth in the number of policies
-
Life EU: robust growth in unit-linked premiums
Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 13
• Higher revenue due to growth in the number of policies and additional premiums on existing policies
• Impact of one-off revenue of €0.7m in Q1 2023 – some onerous contracts became profitable due to favourable financial market movements
• In Q1 2023, realised gains on sale of investments and higher net income on change in fair value of FVTPL assets
Reinsurance: vigorous premium growth and no major loss events
Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 14
- Price increases in line with reinsurance market developments and new opportunities to grow volume
- Growth in proportional and non-proportional business
-
Non-life non-EU: strong premium growth
Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 15
• Growth in motor and property business due to increased number of policies written, with premium growth also seen in most other classes of insurance
Life non-EU: strong revenue growth
Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 16
Pensions and asset management: robust growth in net fund inflows
Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 17
• Positive net inflows of funds across all companies and favourable financial market developments
"Other" segment: stable performance of other activities
Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 18
FINANCIAL INVESTMENTS
Growth in assets under management
Sava Insurance Group / Presentation of results 1–3/2024 / Financial investments 20
± x.y% – growth/decline compared to the end of the previous year.
Improved return on investment portfolio
Sava Insurance Group / Presentation of results 1–3/2024 / Financial investments 21
- Higher interest income as a result of (re)investment at higher interest rates
- Positive contribution from FVTPL portfolio driven by favourable equity and debt market performance
| € m |
1–3/2023 | 1–3/2024 | Difference |
|---|---|---|---|
| effective income interest Interest at rate |
4 4 |
6 2 |
1 8 |
| Change fair value of in FVTPL assets |
1 3 |
2 1 |
0 8 |
| Gains/losses disposal of assets on |
0 0 |
-0 1 |
-0 1 |
| Change expected credit losses (ECL) in |
0 1 |
-0 2 |
-0 3 |
| income/expenses Other from investments |
8 1 |
8 1 |
0 0 |
| investment income Net |
7 7 |
9 9 |
2 2 |
| of Rate return |
2 2% |
2 7% |
+0 5 pp |
High share of fixed-rate investments
| em | 31/12/2023 | 31/3/2024 | Difference | Investr |
|---|---|---|---|---|
| Fixed-rate investments | 1,302.4 | 1,312.4 | 10.0 | |
| Government bonds | 818.8 | 815.2 | -3.6 | F |
| Corporate bonds | 458.0 | 472.1 | 14.1 | |
| Deposits & CDs | 25.6 | 25.1 | -0.5 | Al |
| Shares and funds | 40.3 | 41.5 | 1.2 | |
| Shares | 21.8 | 22.8 | 1.0 | Cash |
| Mutual funds | 18.6 | 18.7 | 0.2 | |
| Alternative investments | 96.1 | 97.5 | 1.4 | |
| Infrastructure funds | 57.3 | 58.8 | 1.5 | |
| Real estate funds | 13.9 | 13.9 | 0.0 | Inves |
| Investment property | 24.9 | 24.8 | 0.0 | maır |
| Cash and cash equivalents | 39.8 | 55.4 | 15.6 | · Incre of fa |
| Other | 24.6 | 25.2 | 0.6 | Rein |
| Total investment portfolio | 1,503.3 | 1,532.1 | 28.9 |
- Investing in highly rated government and corporate bonds to
- maintain a safe and liquid portfolio
- Increased focus on active liquidity management by taking advantage
- of favourable market interest rates
- Reinvestment yield for Q1 2024 at around 3.4%
Secure and stable investment portfolio
Sava Insurance Group / Presentation of results 1–3/2024 / Financial investments 23
POSR SHARE AND DIVIDEND POLICY
Shareholders and share trading
Sava Insurance Group / Presentation of results 1–3/2024 / POSR share and dividend policy
| Basic information on Sava Re share |
31/3/2024 |
|---|---|
| Share capital (€m) |
71.9 |
| Market capitalisation (€m) |
486.6 |
| Trading symbol |
POSR |
| No. of shares | 17,219,662 |
| No. of own shares | 1,721,966 |
| No. of shareholders | 4,360 |
Improved dividend yield
Sava Insurance Group / Presentation of results 1–3/2024 / POSR share and dividend policy 26
* The 2024 dividend yield depends on the share price movement in the period between the date the dividend declaration date and the ex-dividend date.
Dividend policy: distribution of between 35% and 45% of the net profit of the Sava Insurance Group.
• Proposed dividend payout in 2024 in respect of the 2023 profit: €27,120,968.00 or €1.75 gross per share. The general meeting of shareholders will be held on 27 May 2024.
SOLVENCY POSITION
Solid solvency position
28
For more information: [email protected]
Thank you.
Disclaimer
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements relating to Sava Reʾs 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 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 reflects future events or developments.
