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23 August 2024

H1 2024 results: Sava Insurance Group again achieves significant business volume growth and posts pre-tax profit of €57.3m

In accordance with the rules of the Ljubljana Stock Exchange, Ljubljana, and the Market in Financial Instruments Act, Sava Re d.d., Dunajska 56, Ljubljana, makes the following announcement:

• Business volume up 14.0% yoy to €563.8m
• Profit before tax up 17.8% yoy to €57.3m
• Return on equity of 13.8%
• Solvency ratio within 197%–203% range

The Group increased its business volume by 14.0% to EUR 563.8 million, with all operating segments growing. Gross written premiums showed particularly strong growth in non-life insurance (EU 17.8%, non-EU 12.5%) and life insurance (EU 14.4%, non-EU 13.8%). Growth was achieved through price adjustments, as well as further increases in insurance sales. The pensions and asset management segment also delivered substantial revenue growth (18.7%).

Net profit for the period was EUR 44.5 million, an increase of 11.1% over the same period last year, primarily driven by strong revenue growth. The combined ratio remained low at 89.7% due to favourable loss experience and improved by 0.4 percentage points year on year as a result of the Group’s enhanced cost efficiency. The increase in profit was also supported by an improved finance result, up 19.6%, mainly reflecting higher interest income from the investment of operating cash flows and reinvestments at higher rates. Annualised return on equity was 13.8%.

The solvency ratio, estimated at between 197% and 203%, shows that the Group remains very well capitalised. The composition of the Solvency Capital Requirement (SCR) by risk category has not changed significantly since the end of 2023.

Profit outlook. Although the Group’s loss ratio for the first half of the year was favourable, the hail storms that occurred in July resulted in additional loss events. The impact of these events, which will be reflected in the Group’s third-quarter results, is estimated at EUR 16.5 million. The Group remains exposed to increased claims and loss frequency as the year progresses, which could affect the Group’s results for the year. Although the half-year net profit is 64% of the full-year plan, the management board is maintaining its original net profit guidance for 2024 of at least EUR 70 million.

Attachments:

Financial report 1-6 2024

Presentation of results 1-6 2024