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6 March 2025

Information on unaudited results of Sava Insurance Group for 2024

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:

Sava Insurance Group surpasses two milestones: €100m of pre-tax profit and €1bn of business volume

• Business volume up by 13.7% to €1,035.1m
• Pre-tax profit of €109.8m
• Return on equity of 13.6%
• Solvency ratio within 207%–213% range
• All 2024 targets exceeded

The Sava Insurance Group again achieved double-digit growth (13.7%) in its business volume in 2024, breaking the billion-euro business volume mark and surpassing the targeted growth by 11.9%. All business segments grew and outperformed the Group’s plan, with the largest contribution coming from the non-life business, which grew by 16.9% domestically and 17.6% internationally. The Group’s life insurance business also performed strongly, with domestic business up 8.9% and international business up 16.3%. Through this growth, the Group increased its share of the Slovenian market by 1.1 percentage points to 31.2%, while strong growth abroad further strengthened its presence in its foreign markets. The pensions and asset management segment also recorded remarkable revenue growth of 18.8% in a favourable financial market environment. In non-Group reinsurance, the Group continued to pursue its key strategic direction of appropriate portfolio diversification, achieving stable and secure growth of 3.2%.

The Group passed another important milestone in 2024, achieving for the first time a pre-tax profit of more than EUR 100 million and an all-time record net profit of EUR 87.8 million, thereby exceeding the target by more than 20%. These exceptional results were driven by both the insurance service result and the finance result. The increase in the insurance service result mainly reflects the improvement in the loss ratio, but the Group also successfully managed its cost efficiency, with expenses growing at a slower rate than revenue despite continued inflation, which is also reflected in a better expense ratio. The combined ratio improved accordingly to 91.3%, exceeding both the prior year and the target ratio. The larger volume of invested assets, supported by current cash flow, and reinvestment at higher interest rates also improved net investment income, which contributed substantially to the profit achieved. All major operating segments achieved year-on-year growth in profit. The reinsurance segment generated the highest profit in its history, representing 22.8% of the Group’s overall profit and making a significant contribution to the diversification of the Group’s result.

The Group’s strong performance raised return on equity to 13.6%, almost a third above the minimum target set in the business plan. In 2024, Sava Re’s share price gained a remarkable 42.9%.

The solvency ratio, estimated at between 207% and 213%, demonstrates that the Group is well capitalised as this metric is substantially above the regulatory requirement and also above the internally defined optimal capitalisation range. The increase in the ratio in 2024 is also due to the issuance of a subordinated bond. Significantly, the Company’s strong capital position is one of the reasons that led S&P Global Ratings to revise the outlook on Sava Re to positive from stable at the end of 2024. In its announcement, the rating agency underscored the Group’s strategic focus on strong underwriting performance and its robust capitalisation as the key factors in the upward revision. In the Agency’s view, Sava Re was well positioned to continue its track record of sound operating results while expanding profitably in both domestic and international markets, and maintaining its robust capitalisation over the next two years.

The excellent financial results of 2024 also clearly reflect the successful implementation of the Group’s key strategic priorities of customer focus, digitalisation of communications, and development and enhancement of products and processes while successfully adapting to market changes and customer needs. To improve productivity and cost efficiency, the Group continued to automate processes, expand its online product range and introduce new technology solutions. It continued to develop sustainable products and support the global sustainable development goals.

Attachments:

Report on unaudited results 2024

Presentation of unaudited results 2024