Slide 1: Sava Insurance Group 2022 unaudited results, 2023–2027 strategy and 2023 plan
Sava Insurance Group 2022 unaudited results, 2023–2027 strategy and 2023 plan 22 March 2023 Presenting and Q&A: Q&A: Tadej Mendiževec, Polona Pirš Director of Zupančič, Financial Member of the Operations and Management Asset Board Management
Slide 2: Disclaimer
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 deve
Slide 3: Today's topics
Today‘s topics 1. 1) 2022 unaudited results 2. 2) Strategy 2023-2027 3. 3) Plan 2023 4. 4) IFRS 17 & 9 key points 5. 5) Financial calendar & events
Slide 4: 2022 unaudited results
2022 unaudited results
Slide 5: Highlights of 2022
Highlights of 2022 Growth of 6.1% in GPW – mostly in motor insurance due to the growth in the number of policies sold and the average premium; premiums also grew in the reinsurance segment due to positive price movements in global reinsurance markets and in the international life segment, mainly due
Slide 6: All 2020–2022 strategic goals achieved
All 2020–2022 strategic goals achieved Operating revenue > €720 million Return on equity > 12% Combined ratio < 95% Return on investment portfolio > 1.5% * Solvency ratio within 180–220% 6 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 7: Profit for 2022 higher than planned
Profit for 2022 higher than planned Gross result Net result Plan achieved €84.0 m €68.2 m 2022/2021: -10.2% 2022/2021: -10.4% 7 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 8: High return on equity
High return on equity Equity ROE Plan achieved €412.0 m 14.9% 2022/2021: -18.3% 2022/2021: -0.9 p.p. 8 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 9: Continued strong growth in premiums
Continued strong growth in premiums Gross premiums written Plan achieved €774.1 m 2022/2021: +6.1% 9 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 10: Growth of GPW in all markets
Growth of GPW in all markets Market shares Slovenia Insurance: 19.3% Pension: 10.2%** Asset management: 12.5% Serbia Insurance: 3.2%* € million Kosovo Croatia Insurance: 15.3% Insurance: 1.0% Montenegro North Macedonia Insurance: 16.1% Insurance: 8.4% Pension: 48.8% * 1–9/2022 as data for the full y
Slide 11: Combined ratio within target range
Combined ratio within target range Net combined ratio* Plan achieved 90.7% 2022/2021: +2.6 p.p. * Excluding the effect of exchange differences. Net combined ratio: all expenses (other than from investments) as percentage of total income (other than from investments) – calculated for the non-life and
Slide 12: High quality of the investment portfolio
High quality of the investment portfolio Amount Structure Rating profile € million 31/12/2021 31/12/2022 31/12/2021 31/12/2022 Government bonds 718.5 732.6 45.4% 51.6% Corporate bonds 592.1 417.8 37.4% 29.4% Cash and cash equivalents 74.0 78.4 4.7% 5.5% Infrastructure funds 44.5 53.9 2.8% 3.8% Share
Slide 13: Dividend
Dividend Dividend policy: 10% average increase in dividend per year; distribution between 35% and 45% of the net profit of the Sava Insurance Group 13 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 14: Solid capital position
Solid capital position within optimal range The Group’s estimated capital adequacy as at 30 September 2022 indicates that the Group’s solvency remains high (between 189% and 199%) and well above the regulatory requirement. The solvency ratio is within the optimal capitalisation range based on criter
Slide 15: 2023–2027 strategy
STRATEGY OF THE SAVA INSURANCE GROUP FOR 2023-2027 AMONG GOOD PEOPLE
Slide 16: 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 •
16 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 17: 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 •
17 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 18: 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 •
18 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 19: 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 •
19 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 20: 2023 plan
BUSINESS PLAN OF THE SAVA INSURANCE GROUP FOR 2023 S SAVA INSURANCE GROUP AMONG GOOD PEOPLE
Slide 21: Key targets 2023
Key targets 2023 21 2022 unaudited results • 2023–2027 strategy • 2023 plan • IFRS17 & IFRS9 • Financial and events calendar
Slide 22: IFRS17 & IFRS9
IFRS17 & IFRS9 More information on: https://www.sava-re.si/en-si/investor-relations/calendar-events-presentations/
Slide 23: Key messages
Key messages No impact on strategy or business model Cash flows and capitalisation remain strong Earnings expected to remain mostly unaffected Dividend capacity to remain unchanged Better reflection of value and earnings of life business More information on: https://www.sava-re.si/en-si/investor-rel
Slide 24: IFRS 17: Effects on Sava Insurance Group segments
IFRS 17: Effects on Sava Insurance Group segments Limited changes: • Revenue and earnings mostly similar to current practice Non-life • Combined ratio net/net calculation to remain unchanged, adjusted for IFRS 17 specifics, including non-attributable expenses and other net revenue Most of the change
Slide 25: IFRS 9: No material impact on investment portfolio
IFRS 9: No material impact on investment portfolio • Most debt securities pass SPPI test • Changes in fair value for most debt securities continue to be recorded through OCI • Higher share of FVTPL investments potentially increases volatility of earnings • Expected Credit Loss (ECL) allowance not ma
Slide 26: Financial and events calendar
Financial and events calendar
Slide 27: Upcoming financial releases and events
Upcoming financial releases and events 23 March 2023 Release of the Audited Annual Report of the Sava Insurance Group and Sava Re d.d. for 2022; 6 April 2023 Release of the Solvency and Financial Condition Report of Sava Re d.d. for 2022 7 April 2023 Publication of the notice of the 39th general mee
Slide 28: Thank you for your attention.
Thank you for your attention.