Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Insurance Group — Q1 2023 Earnings Presentation
31 slides from Sava Re,d.d's earnings presentation, May 31, 2023
Slide 1: 1–3/2023 unaudited results
Sava Insurance Group 1–3/2023 unaudited results 31 May 2023
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: Contents
CONTENTS 01 Group results 02 Segment reporting 03 Financial investments 04 POSR share and dividend policy 05 Solvency position
Slide 4: Group results
GROUP RESULTS
Slide 5: Highlights 1–3/2023
Highlights 1–3/2023 Growth in gross written premiums of Net profit of €20.1 million New management board member 9.8% – strongest growth in the motor (1–3/2022: €8.2 million) David Benedek started his five-year business, reflecting more policies sold term of office on 22 March 2023 and higher average
Slide 6: Key figures
Key figures Change € million, except % 1–3/2022 1–3/2023 2023 plan 2023/2022 Business volume 236.8 260.2 > 800 9.9% Gross premiums written 231.7 254.4 9.8% Insurance revenue 136.9 153.2 11.9% Profit, net of tax 8.2 20.1 > 53 144.3% Return on equity* 5.9% 13.4% > 9.5% +7.5 p.p. Combined ratio (non-li
Slide 7: Business volume
Business volume Growth/decline compared to the previous year Consolidated gross premiums written by class of insurance Sava Insurance Group / Group results 7 / 31
Slide 8: Growth in business volume of 9.9%
Growth in business volume of 9.9% Sava Insurance Group / Group results 8 / 31
Slide 9: Breakdown of profit before tax by segment
Breakdown of profit before tax by segment Growth/decline compared to the previous year Sava Insurance Group / Group results 9 / 31
Slide 10: Profit before tax higher by 147.6%
Profit before tax higher by 147.6% Sava Insurance Group / Group results 10 / 31
Slide 11: Contractual service margin (CSM) by operating segment
Contractual service margin (CSM) by operating segment Growth/decline compared to the previous year Sava Insurance Group / Group results 11 / 31
Slide 12: Segment reporting
SEGMENT REPORTING
Slide 13: Non-life EU
Non-life EU • Growth mainly in the motor personal lines • Price increases to mitigate inflation • Fair value losses on FVTPL investments in Q1 2022 segment due to price increases (adjusted for • Favourable claims development in old U/W years due to financial market turbulence inflation) and upswing
Slide 14: Life EU
Life EU • Higher sales of single premium policies in Q1 2022 • Higher Insurance revenue due to change in business mix: • Negative impact from change in fair value of – positive financial markets before the start of the more protection business (without investment FVTPL investments in Q1 2022 due to
Slide 15: Reinsurance
Reinsurance • Positive price developments in reinsurance markets • Higher insurance revenue due to growth in non- • Negative impact from change in fair value of • New business opportunities captured proportional business FVTPL investments in Q1 2022 due to financial • Non-proportional reinsurance ra
Slide 16: Non-life non-EU
Non-life non-EU • Organic growth, especially in motor, health • Higher claims • Higher interest revenue due to portfolio and property growth and higher reinvestment rates Sava Insurance Group / Segment reporting 16 / 31
Slide 17: Life non-EU
Life non-EU • Increased insurance sales through insurers’ own • Higher insurance revenue reflecting portfolio growth • Moderately higher interest revenue due to portfolio distribution networks as well as through agents and growth and higher reinvestment rates banks Sava Insurance Group / Segment rep
Slide 18: Pensions and asset management
Pensions and asset management • Higher assets under management • Fewer insured persons reaching retirement eligibility • Cost increases as a result of inflationary pressures • Negative impact in Q1 2022 from change in fair • Positive net inflows in all companies and more favourable financial market
Slide 19: Other
Other Composition of result Sava Insurance Group / Segment reporting 19 / 31
Slide 20: Financial investments
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Slide 21: Investment portfolio and AuM
Investment portfolio and AuM Sava Insurance Group / Financial investments 21 / 31
Slide 22: Net investment income of and return on the investment portfolio
Net investment income of and return on the investment portfolio € million 1–3/2022 1–3/2023 Difference Interest income 3.7 4.4 0.7 Change in fair value of FVTPL assets -4.5 1.3 5.8 Gains / losses on disposal of assets -0.1 0.0 0.2 Change in expected credit losses (ECL) -0.1 0.1 0.2 Other income / ex
Slide 23: Asset allocation
Asset allocation € million 31/12/2022 31/3/2023 Difference Fixed income investments 1,174.9 1,204.4 29.5 Government bonds 734.9 771.1 36.2 Corporate bonds 421.4 415.5 -5.9 Deposits & CDs 18.7 17.8 -0.9 Shares and funds 47.0 44.1 -3.0 Shares 24.9 25.7 0.8 Mutual funds 22.2 18.4 -3.8 Alternative inves
Slide 24: Classification of financial assets
Classification of financial assets Q1 highlights Comparison with IAS 39 • No major effects in Q1 • IFRS 9 AC portfolio combines IAS 39 LR and HTM portfolios • Growth in share of FVOCI assets as a result of more favourable • The AC bond investment balance is reduced by ECL developments in the bond ma
Slide 25: Secure and stable investment portfolio
Secure and stable investment portfolio Sava Insurance Group / Financial investments 25 / 31
Slide 26: POSR share and dividend policy
POSR SHARE AND DIVIDEND POLICY
Slide 27: Shareholders and share trading
Shareholders and share trading 31/3/2023 Book value of share Share capital (€ million) 71.9 31 March 2023 Market capitalisation (€ million) 393.6 Trading symbol POSR €35.65* No. of shares 17,219,662 No. of own shares 1,721,966 * Higher book value of share as a result of higher equity following trans
Slide 28: Dividend policy
Dividend policy Dividend policy: distribution of between 35% and 45% of the net profit of the Sava Insurance Group. PROPOSAL Dividend as % of consolidated profit • Proposed dividend payout in 2023 in respect of the 2022 profit: proposed dividend payment of €24,796,313.60, or €1.60 gross per share. T
Slide 29: Solvency position
SOLVENCY POSITION
Slide 30: Capital adequacy
Capital adequacy The Sava Insurance Group’s solvency and financial condition report for 2022 was posted on the Sava Re website and that of the Ljubljana stock exchange on 12 May 2023. Sava Insurance Group / Solvency position 30 / 31
Slide 31: Thank you.
Thank you. For more information: ir@sava-re.si www.sava-re.si