Slide 1: Sava Insurance Group 1–3/2021 results
Sava Insurance Group 1–3/2021 results 28 May 2021 Presenting: Q&A part: Mrs. Polona Pirš Mrs. Polona Pirš Zupančič, Zupančič, Mrs. Mateja Member of the Member of the Živec, Management Management Head of Asset Board Board Management
Slide 2: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 3: Highlights 1–3/2021
Highlights 1–3/2021 Growth in operating revenue of 18.2% Net profit of €23.5 million, which represents 44.3% of planned net profit for the whole year 2021 Net combined ratio (excluding FX differences) of 83.3% Improved results in most segments, especially in non-life Slovenia and reinsurance due to
Slide 4: Key Figures - Sava Insurance Group
Key Figures - Sava Insurance Group Change € million, except % 1–3/2020 1–3/2021 2021 plan 2021/2020 Group Operating revenue 150.5 177.9 > 685 18.2% Gross premiums written, (re)insurance part 196.5 214.2 > 685 9.0% Net expense ratio, including operating revenue* 30.4% 27.4% 32 ̶ 33% -3.0 p.p. Return
Slide 5: Breakdown of consolidated revenue
Breakdown of consolidated revenue Growth/decline compared to the previous year Without Vita Without FOS and Vita • Earned premiums • Premiums from annuities • Income from resolving TBS • Other technical income (including commision) • Income from managing Team assistance cases • Other income pension
Slide 6: Growth in consolidated GPW of 9.0%
Growth in consolidated GPW of 9.0% 6 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 7: Breakdown of consolidated GPW
Growth/decline Breakdown of consolidated GPW Without Vita Without FOS and Vita compared to the previous year Consolidated gross premiums written by class of insurance 7 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 8: Growth in profit before tax of 121.6%
Growth in profit before tax of 121.6% 8 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 9: Consolidated profit before tax by segment
Consolidated profit before tax by segment 9 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 10: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 11: Segment reporting – reinsurance
Segment reporting – reinsurance • GPW on same level, with larger share of non- • Improvement in UW result mainly due to • Investment result, excl. FX differences, proportional business favourable development of older UWYs somewhat lower, chiefly due to lower interest • 2021 UWY premiums down 5.9% (€
Slide 12: Segment reporting – non-life Slovenia
Segment reporting – non-life Slovenia • FoS business down €5.6 million • Stronger underwriting result of Slovenian part • Better investment result because of lower • Non-FoS business up €0.9 million, excl. Vita thanks to lower claims frequency due to investment expenses; Q1 increase in expenses decl
Slide 13: Segment reporting – non-life international
Segment reporting – non-life international • Decline in GPW, especially in motor liability in • Due to seasonal trends, negative underwriting • Lower investment result due to lower interest Croatia and Serbia result in early 2021; although claims dropped in income line with premium income, there is
Slide 14: Segment reporting – life Slovenia
Segment reporting – life Slovenia • Vita, which was not part of the Group in Q1 • Net expense ratio down due to inclusion of Vita, • Higher return thanks to inclusion of Vita 2020, generated €25.9 million in GPW in Q1 which operates at a lower expense ratio 2021. If Vita is excluded, GPW are down 5.
Slide 15: Segment reporting – life international
Segment reporting – life international • High decline in GPW at Croatian part of • Lower expense ratio due to costs savings, both on • Investment result declined because of lower net Zavarovalnica Sava due to portfolio acquisition costs due to lower sales in Croatia and income from FX differences of
Slide 16: Segment reporting – pensions and asset management
Segment reporting – pensions and asset management • Slightly more policyholders opting for pension • Growth due to increase in assets under • Increase in operating expenses, chiefly due to annuities upon retirement management, especially at Sava Infond depreciation of client list at Sava Infond - de
Slide 17: Segment reporting – other
Segment reporting – other 17 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 18: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 19: Investment portfolio and AuM
Investment portfolio and AuM 19 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 20: Structure of the investment portfolio
Structure of the investment portfolio 31/12/2020 31/3/2021 Investment portfolio (€ million) 1,535.3 1,557.4 Government bonds 43.0% 43.3% Corporate bonds 40.3% 38.8% Cash and cash equivalents 4.8% 5.8% Investment property 2.5% 2.6% Mutual funds 2.5% 2.3% Infrastructure funds 1.8% 2.0% Shares 1.5% 1.4
Slide 21: Net inv. income of and return on the investment portfolio
Net inv. income of and return on the investment portfolio Absolute change € million 1–3/2020 1–3/2021 2021 - 2020 Net investment income relating to the investment portfolio 2.2 7.6 5.5 Net investment income of the investment portfolio, excluding FX 3.2 4.7 1.6 differences Return on the investment po
Slide 22: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 23: Shareholders and share trading
Shareholders and share trading 31/3/2021 Book value per share Share capital (€ million) 71.9 Market capitalisation (€ million) 389.2 €30.77 Trading symbol Number of shares POSR 17,219,662 31 Mar 21 / 31 Dec 20: +3.6% Number of own shares 1,721,966 Number of shareholders 4,229 * Custody account. 23 G
Slide 24: Dividend policy
Dividend policy • Dividend policy: 10% average increase in dividend per year; distribution of between 35% and 45% of the net profit of the Sava Insurance Group. • Sava Re did not pay any dividends in 2020 because of increased Covid-19-related risks identified and due to special caution in response t
Slide 25: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 26: Capital adequacy
Capital adequacy € million 31/12/2020 Eligible own funds 567.8 Solvency capital requirement 287.4 Solvency ratio 198% € million 31/12/2019 Eligible own funds 522.0 Solvency capital requirement 237.7 Solvency ratio 220% The Sava Insurance Group’s Solvency and financial condition report 2020 was poste
Slide 27: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 28: Key group performance metrics
Key group performance metrics 2019 2020 2021 € actual actual plan Group Operating revenue €588.5 m €680.8 m > €685 m Profit or loss, net of tax €50.2 m €56.4 m > €53 m Return on equity 13.8% 13.3% >= 11.5% Net expense ratio* 31.6% 29.5% 32‒33% Investment return* 1.9% 1.6% 1.5% (Re)insurance part Gro
Slide 29: Consolidated GPW / operating revenue by segment
Consolidated GPW / operating revenue by segment 29 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2021 plan
Slide 30: Thank you for your attention.
Thank you for your attention.
Slide 31: 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 32: Appendix
Appendix
Slide 33: Group exposure by region
Group exposure by region Exposure to individual regions did not change significantly in the period under review compared to year-end 2020. Države EU 33 Appendix
Slide 34: Group exposure to Slovenia
Group exposure to Slovenia € million 31/12/2020 31/3/2021 Change Type of investment Amount Structure Amount Structure in p.p. Government bonds 148.5 9.2% 133.7 8.2% -1.0 Cash and cash equivalents 69.2 4.3% 88.5 5.4% 1.1 Corporate bonds 20.5 1.3% 20.8 1.3% 0.0 Shares 18.4 1.1% 19.2 1.2% 0.0 Investmen
Slide 35: Group exposure by industry
Group exposure by industry The decrease in exposure to the finance and insurance industry is due to the maturity of ordinary corporate bonds. Finance * Includes direct investments in real estate and property funds. Also included are corporate bonds classified as real estate under GICS. 35 Appendix
Slide 36: Solid rating profile maintained despite Covid-19
Solid rating profile maintained despite Covid-19 Investment grade assets account for 85.3% of fixed-rate investments and increased by 2.4 p.p. compared to the year end. The decline in A-grades is due to the maturity of government bonds and the downgrading of credit ratings due to the Covid-19 situat