Slide 1: Sava Insurance Group 1–3/2022 unaudited results
Sava Insurance Group 1–3/2022 unaudited results 27 May 2022 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: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 3: Highlights 1–3/2022
Highlights 1–3/2022 Operating revenue flat year on year Growth in gross premiums written of 7.7% Net profit reaches €16.8 million and 27.9% of full-year target for 2022 Net expense ratio of 27.4%, flat year on year Net combined ratio (excl. FX) of 90.8% (1–3/2021: 82.8%) Slovenian non-life segment a
Slide 4: Key figures
Key figures Change € million, except % 1–3/2021 1–3/2022 2022 plan 2022/2021 Group Operating revenue 177.9 177.8 > 700 0.0% Gross premiums written 215.2 231.7 7.7% Net expense ratio, including operating revenue* 27.4% 27.4% 31 ̶ 32% +0.0 p.p. Return on the investment portfolio* 1.4% 1.3% 1.4% -0.1 p
Slide 5: Breakdown of consolidated revenue
Growth/decline Breakdown of consolidated revenue compared to the previous year • Earned premiums • Premiums from annuities • Income from resolving TBS • Other technical income (including commision) • Income from managing Team assistance cases • Other income pension company’s funds • For life busines
Slide 6: Growth in consolidated GPW of 7.7%
Growth in consolidated GPW of 7.7% 6 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 7: Breakdown of consolidated GPW
Growth/decline Breakdown of consolidated GPW 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 • 2022 plan
Slide 8: Breakdown of consolidated profit before tax
Breakdown of consolidated profit before tax 8 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 9: Decrease in profit before tax of 30.3%
Decrease in profit before tax of 30.3% 9 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 10: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 11: Results by operating segment – reinsurance
Results by operating segment – reinsurance • 22% growth in non-proportional reinsurance • Decline in underwriting result because of lower • Weaker investment result, excl. FX, due to higher business, especially in EU net premiums earned (larger proportion of new expenses for fair value changes of FV
Slide 12: Results by operating segment – non-life Slovenia
Results by operating segment – non-life Slovenia • Growth in gross property premiums due to • Weaker underwriting result owing to lower net • Weaker result chiefly due to higher expenses for different dynamics in the key account segment, premiums earned and higher net claims incurred, which fair val
Slide 13: Results by operating segment – non-life international
Results by operating segment – non-life international • Growth in gross premiums across all companies; • Better underwriting result because of higher • Lower investment result due to lower gains on largest growth in gross motor premiums, in particular premiums earned and lower claims incurred, sale
Slide 14: Results by operating segment – life Slovenia
Results by operating segment – life Slovenia • 4.4% growth in gross premiums of Vita, mainly • The net expense ratio remained flat year on • Net investment income was lower chiefly due to due to better sales in the last year. Strong sales year higher expenses for fair value changes of assets continu
Slide 15: Results by operating segment – life international
Results by operating segment – life international • Gross premiums of the Kosovo insurer grew by • The expense ratio remained largely flat year on year • Better investment result due to rise in 82% due to both the launch of sales through a interest income and positive effect of FX bank in mid-2021 a
Slide 16: Results by operating segment – pensions and asset management
Results by operating segment – pensions and asset management • The portfolio of annuity policies grows in line with • Higher income reflecting increased assets • Increase in operating expenses due to growth the number of policyholders who meet pension under management year on year, most notably in b
Slide 17: Results by operating segment – other
Results by operating segment – other 17 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 18: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 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 • 2022 plan
Slide 20: Structure of the investment portfolio
Structure of the investment portfolio € million 31/12/2021 31/3/2022 Government bonds 718.5 701.5 Corporate bonds 592.1 542.4 Cash and cash equivalents 74.0 93.2 Infrastructure funds 44.5 46.8 Mutual funds 35.9 32.8 Shares 36.0 29.3 Deposits & CDs 18.6 18.2 Real estate funds 15.8 16.2 Investment pro
Slide 21: Net investment income and return on the investment portfolio
Net inv. income of and return on the investment portfolio € million 1–3/2021 1–3/2022 Absolute change Net investment income relating to the investment portfolio 7.6 5.5 -2.2 Net investment income of the investment portfolio, excluding FX differences 4.7 4.4 -0.3 Return on the investment portfolio, e
Slide 22: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 23: Shareholders and share trading
Shareholders and share trading 31/3/2022 Book value per share Share capital (€ million) 71.9 Market capitalisation (€ million) 447.9 €30.49 Trading symbol Number of shares POSR 17,219,662 31 Mar 22 / 31 Dec 21: -6.3% Number of own shares 1,721,966 Number of shareholders 4,257 * 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 • 2022 plan
Slide 26: Capital adequacy
Capital adequacy € million 31/12/2020 Eligible own funds 567.8 Solvency capital requirement (SCR) 287.4 Solvency ratio 198 % € million 31/12/2021 Eligible own funds 601.3 Solvency capital requirement (SCR) 304.4 Solvency ratio 198 % The Sava Insurance Group’s solvency and financial condition report
Slide 27: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 28: Major development areas in 2022
Major development areas in 2022 28 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 29: Key group performance metrics
Key group performance metrics 2020 2021 2022 actual actual plan Operating revenues €680.8 m €732.7 m > €700 m Profit, net of tax €56.4 m €76.2 m > €60 m Return on equity (ROE) 13.3% 15.8% >= 11.5% Net expense ratio* 29.5% 29.0% 31‒32% Investment return* 1.6% 1.8% 1.4% Net combined ratio* (reins. + n
Slide 30: Operating revenue by segment
Operating revenue by segment 30 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • 2022 plan
Slide 31: Thank you for your attention.
Thank you for your attention.
Slide 32: 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 33: Appendix
Appendix
Slide 34: Group exposure by region
Group exposure by region The exposure to individual regions remained broadly flat compared to year-end 2021. Higher exposure to Slovenia is mainly driven by increased balance of cash and cash equivalents. Lower exposure to EU countries chiefly reflects maturing and disposals of investments of EU iss
Slide 35: Group exposure by industry
Group exposure by industry The increase in exposure to the banking sector is due to higher cash and cash equivalents, which are short-term in nature. Assets from maturing investments of other sectors were partially invested in government investments, which increased the exposure to the government se
Slide 36: Rating profile
Rating profile Investment-grade assets accounted for 82.6% of fixed-rate investments, down 1.9 p.p. compared to year-end 2021. The proportion of A-rated investments declined due to the maturing of the best-rated investments, which were only partly reinvested, leaving the remainder in cash and cash e