Sava Re,d.d · LJSE:POSR
Sava Re,d.d — 1–9/2024 Earnings Presentation
32 slides from Sava Re,d.d's earnings presentation, Nov 22, 2024
Slide 1: Presentation of results 1–9/2024
Sava Insurance Group Presentation of results 1–9/2024 22 November 2024
Slide 2: Contents
CONTENTS 01 Group results 02 Segment reporting 03 Financial investments 04 Sava Re share and dividend policy 05 Solvency position
Slide 3: Group results
GROUP RESULTS
Slide 4: Performance highlights
Performance highlights Growth in gross premiums written of Net profit of €62.1m Other significant events 14.5% (1–9/2024: €36.5m) in 1–9/2024 and after 30/9/2024 primarily in the motor business due to growth in average premiums and the Better insurance service result: Credit ratings reaffirmed: S&P
Slide 5: Key figures
Key figures Change €m, except % 1–9/2023 1–9/2024 2024 plan 2024/2023 Business volume 710.3 814.7 > 925 14.7% Gross premiums written 691.6 791.6 14.5% Profit, net of tax 36.5 62.1 > 70 70.0% Return on equity* 8.2% 12.9% > 10.5% +4.6 pp Combined ratio (non-life and reinsurance) 96.3% 91.7% < 95% -4.5
Slide 6: Significant growth across all operating segments
Significant growth across all operating segments Business volume by segment +14.7% (€m) 814.7 710.3 +17.2% 436.4 372.3 +11.7% +7.9% +15.0% +14.1% +17.9% +36.8% 128.5 143.5 104.6 112.8 86.5 75.2 8.5 9.7 17.0 20.0 4.3 5.9 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and asset O
Slide 7: Business volume: inflationary price adjustments and organic growth
Business volume: inflationary price adjustments and organic growth Change in business volume by segment (€m) +14.7% +3.0 +1.6 814.7 +11.3 +1.2 +8.2 +15.0 +64.1 710.3 1–9/2023 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and Other 1–9/2024 asset management Sava Insurance Group
Slide 8: Profit before tax: high revenue growth and favourable claims experience
Profit before tax: high revenue growth and favourable claims experience Profit before tax by segment +72.3% (€m) 77.7 45.1 +865.0% 34.8 +6.8% +2.3% 15.1 15.7 16.1 14.2 +18.1% -2.6% -14.4% 6.8 5.8 3.6 3.7 3.6 1.8 1.6 0.3 -0.3 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and as
Slide 9: Profit before tax: substantial improvement in the EU non-life segment
Profit before tax: substantial improvement in the EU non-life segment Change in profit before tax by segment (€m) +72.3% +1.0 +0.4 +1.0 77.7 +31.2 -0.1 -0.3 -0.6 45.1 1–9/2023 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and Other 1–9/2024 asset management Sava Insurance Grou
Slide 10: Impact of natural catastrophe losses on result
Impact of natural catastrophe losses on result Natural catastrophe claims (€m) 45.6 33.7 28.3 23.3 22.9 22.8 16.9 2018 2019 2020 2021 2022 2023 1–9/2024 Includes net claims affecting the (re)insurance portfolios of the Group companies resulting from natural perils (such as windstorm, flood, earthqua
Slide 11: Growth in CSM
Growth in CSM CSM by segment +12.4% (€m) 174.6 +11.1% 155.3 147.3 132.6 +1.1% +59.5% -1.0% +12.9% 6.3 6.4 8.7 9.0 8.9 5.5 0.0 1.1 1.9 2.2 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions Total 31/12/2023 30/9/2024 Sava Insurance Group / Presentation of results 1–9/2024 / Group re
Slide 12: Segment reporting
SEGMENT REPORTING
Slide 13: Non-life EU: premium growth and more favourable claims experience
Non-life EU: premium growth and more favourable claims experience Gross premiums written Insurance service result Finance result Net investment inc./exp. (€m) +17.2% (€m) +311.8% (€m) Net ins. finance inc./exp. 436.4 37.5 6.6 372.3 2.3 9.3 5.1 9.1 -2.8 -2.6 1–9/2023 1–9/2024 1–9/2023 1–9/2024 1–9/20
Slide 14: Life EU: robust growth in unit-linked premiums
Life EU: robust growth in unit-linked premiums Insurancepremije Kosmate revenue Insurance service result Finance result Net investment inc./exp. (mio €) (€m) +11.9% (€m) +13.9% (€m) Net ins. finance inc./exp. 49.6 15.6 4.3 3.8 44.4 13.7 6.8 6.4 -2.5 -2.6 1–9/2023 1–9/2024 1–9/2023 1–9/2024 1–9/2023
Slide 15: Reinsurance: no major loss events
Reinsurance: no major loss events Gross premiums written Insurance service result Finance result Net investment inc./exp. (€m) +7.9% (€m) +13.5% (€m) Net ins. finance inc./exp. 112.8 18.9 Net exchange rate diff. 104.6 16.7 0.8 1.7 4.1 5.8 1.5 -3.9 -4.4 -0.6 1–9/2023 1–9/2024 1–9/2023 1–9/2024 1–9/20
Slide 16: Non-life non-EU: deteriorated claims experience
Non-life non-EU: deteriorated claims experience Gross premiums written Insurance service result Finance result Net investment inc./exp. (€m) +15.0% (€m) (€m) Net ins. finance inc./exp. -14.5% 86.5 3.5 2.8 75.2 3.0 1.7 3.3 2.1 -0.4 -0.5 1–9/2023 1–9/2024 1–9/2023 1–9/2024 1–9/2023 1–9/2024 • Growth i
Slide 17: Life non-EU: revenue growth
Life non-EU: revenue growth Insurance revenue Insurance service result Finance result Net investment inc./exp. (€m) +27.4% (€m) +8.5% (€m) Net ins. finance inc./exp. 6.2 1.3 0.5 1.2 4.8 0.5 1.0 0.7 -0.2 -0.5 1–9/2023 1–9/2024 1–9/2023 1–9/2024 1–9/2023 1–9/2024 • Increase due to methodological adjus
Slide 18: Pensions and asset management: robust growth in net fund inflows
Pensions and asset management: robust growth in net fund inflows Revenue from asset management Expense ratio Profit before tax (€m) (€m) 65.4% 64.4% +18.1% +19.4% 6.8 17.2 5.8 14.4 1–9/2023 1–9/2024 1–9/2023 1–9/2024 1–9/2023 1–9/2024 • Growth in assets under management • High growth in revenue and
Slide 19: “Other” segment
“Other” segment Profit before tax Composition of profit before tax 1–9/2023 (€m) (€m) 1–9/2024 0.3 0.7 Assistance 1.0 2.1 Associated companies -0.3 1.6 1–9/2023 1–9/2024 Interest expense -2.5 on subordinated debt and segment expenses -2.7 0.0 Other -0.2 Sava Insurance Group / Presentation of results
Slide 20: Financial investments
FINANCIAL INVESTMENTS
Slide 21: Growth in Group investment portfolio and assets under management
Growth in Group investment portfolio and assets under management Investment portfolio and assets under management (consolidated) (€m) +5.8% +8.8% +12.6% 4,310 4,166 +4.4% +7.5% +8.9% +14.3% 4,051 3,828 675 652 3,601 3,647 614 3,496 542 3,349 Assets under management 494 490 463 717 €2,713m Mutual fun
Slide 22: Improved return on investment portfolio
Improved return on investment portfolio €m 31/12/2023 30/9/2024 Change Index Investment portfolio 1,503.3 1,596.3 93.0 106.2 €m 1–9/2023 1–9/2024 Change Index Net investment income 21.8 28.6 6.8 131.0 Interest income 15.4 19.9 4.6 129.8 Change in fair value of FVTPL assets 1.4 3.0 1.7 218.6 Dividend
Slide 23: Large share of fixed-rate investments
Large share of fixed-rate investments €m 31/12/2023 30/9/2024 Difference Asset allocation Fixed-rate investments 1,302.4 1,381.6 79.1 86.6% Fixed-rate investments 86.5% Government bonds 819.1 861.3 42.2 2.7% Shares and mutual funds 2.8% Corporate and financial bonds 457.7 493.2 35.4 4.7% Alternative
Slide 24: Large share of government bonds
Large share of government bonds €m 31/12/2023 30/9/2024 Difference Composition of fixed-rate investments Fixed-rate investments 1,302.4 1,381.6 79.1 62.9% Government bonds 62.3% Government bonds 819.1 861.3 42.2 Corporate and financial bonds 374.7 414.9 40.2 Corporate and 28.8% financial bonds 30.0%
Slide 25: Secure and stable investment portfolio
Secure and stable investment portfolio Fixed-rate investments by credit rating Fixed-rate investments by region Not rated 4.1% 2.4% 1.2% Other 6.7% 6.2% 1.2% B 4.9% 7.1% BB USA 10.9% 10.9% 13.9% BBB 18.5% Non-EU 12.5% 12.5% countries 26.9% A 25.8% 89.8% 89.3% EU countries 60.9% 63.3% 23.3% AA 20.7%
Slide 26: Sava Re share and dividend policy
SAVA RE SHARE AND DIVIDEND POLICY
Slide 27: Shareholders and share trading
Shareholders and share trading 30/9/2024 Trading symbol POSR Book value of share Market capitalisation (€m) 616.8 30 September 2024 No. of shares issued 17,219,662 €39.98 No. of treasury shares 1,721,966 No. of shareholders 4,371 Shareholder structure as at 30 September 2024 Intercapital securities*
Slide 28: High dividend yield
High dividend yield Dividend policy: distribution of between 35% and 45% of the net profit of the Sava Insurance Group Dividend as % of consolidated profit • On 27 May 2024, the general meeting of shareholders approved the dividend proposal of €27,120,968 or €1.75 gross per share. The dividend was p
Slide 29: Solvency position
SOLVENCY POSITION
Slide 30: Solid solvency position
Solid solvency position Over- capitalisation Additional engagement or return of capital > 250% Optimal capitalisation Acceptable overcapitalisation Seeking ways to restructure capital use 210%–250% Optimal Sprejemljiva nad 250 %presežna kapitaliziranost capitalisation Presežna No action required Pre
Slide 31: Thank you.
Thank you. For more information: ir@sava-re.si www.sava-re.si
Slide 32: Cautionary statements and notes
Cautionary statements and notes Forward-looking statements This document may contain forward-looking statements relating to the expectations, plans or goals of the Sava Insurance Group (the Group), which are based on estimates and assumptions made by the management of Sava Re (the Company). By their