Back

22 November 2024

Nine-month results for 2024: Sava Insurance Group increases pre-tax profit to €77.7m, up more than 70% YoY

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 by 14.7% year on year (YoY) to €814.7m
• Significant growth in all operating segments
• Profit before tax up 72.3% YoY to €77.7m
• Return on equity of 12.9%
• Solvency ratio within 198%–204% range

The Sava Insurance Group increased its business volume by 14.7% to EUR 814.7 million during the first nine months of 2024, with significant growth in all operating segments. Double-digit growth in gross written premiums was achieved in both the non-life (EU 17.2%, non-EU 15.0%) and life business (EU 11.7%, non-EU 14.1%), while reinsurance premiums also increased by a solid 7.9%. Growth was achieved through price adjustments and further increases in the number of insurance and reinsurance contracts written. The pensions and asset management segment also showed substantial revenue growth of 17.9%.

Net profit for the period was EUR 62.1 million, an increase of 70.0% over the same period last year. The main contributor was the non-life business, with a 20.0% increase in insurance revenue and a more favourable claims experience than last year, when the Group suffered higher natural catastrophe losses than this year. The Group also generated higher profits in its pensions and asset management, life insurance and reinsurance segments.

The profit figure was also supported by the Group’s finance result, which improved by 37.9%, reflecting the full impact of higher interest rates on reinvested financial assets as well as assets invested from operating cash flows.

The combined ratio improved by 4.6 percentage points to a very favourable 91.7%, driven by revenue growth and a more favourable claims experience, as well as the Group’s efficient cost management, despite continued upward pressure on costs.

The solvency ratio, estimated at between 198% and 204%, 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. The Group’s net profit for the first nine months of 2024 represents 88.7% of the lower end of the 2024 full-year target range for net profit. If there is no material deterioration in claims experience in the fourth quarter and financial market conditions remain stable, the management board now expects that the Group will exceed its 2024 net profit guidance of EUR 70 million.

Attachments:

Statement of results 1-9 2024

Presentation of results 1-9 2024