Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Insurance Group — H1 2023 Earnings Presentation
31 slides from Sava Re,d.d's earnings presentation, Aug 25, 2023
Slide 1: Sava Insurance Group 1–6/2023 unaudited results
Sava Insurance Group 1–6/2023 unaudited results 25 August 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 1–6/2023
Highlights 1–6/2023 Growth in gross written premiums of Net profit of €40.0 million After 1–6/2023, Slovenia and the wider 11.6% – strongest growth in the motor (1–6/2022: €11.1 million) region was hit by a wave of storms and business, reflecting more policies sold floods, which is expected to signi
Slide 6: Key figures
Key figures Change € million, except % 1–6/2022 1–6/2023 2023 plan 2023/2022 Business volume 443.3 495.1 > 800 11.7% Gross premiums written 433.0 483.3 11.6% Insurance revenue 286.6 328.4 14.6% Profit, net of tax 11.1 40.0 > 53 260.4% Return on equity* 4.1% 13.3% > 9.5% +9.2 p.p. Combined ratio (non
Slide 7: Business volume up 11.7%
Business volume up 11.7% Growth/decline compared to the previous year Gross premiums written by class of insurance Sava Insurance Group / Group results 7 / 31
Slide 8: Operating segments driving growth in business volume
Operating segments driving growth in business volume Sava Insurance Group / Group results 8 / 31
Slide 9: Breakdown of profit before tax by segment
Breakdown of profit before tax by segment Sava Insurance Group / Group results 9 / 31
Slide 10: Operating segments driving growth in profit before tax
Operating segments driving growth in profit before tax Sava Insurance Group / Group results 10 / 31
Slide 11: Contractual service margin (CSM)
Contractual service margin (CSM) Sava Insurance Group / Group results 11 / 31
Slide 12: Segment reporting
SEGMENT REPORTING
Slide 13: Non-life EU
Non-life EU • Growth mainly in personal motor, driven by • Impact of claims inflation in 1–6/2022 • Fair value losses on FVTPL investments in 1–6/2022 inflation-adjusted price increases and increased • Impact of gross premium growth mitigating the due to financial market conditions policy numbers im
Slide 14: Life EU
Life EU • Higher sales of single premium policies in 1–6/2022 • Higher Insurance revenue due to change in business mix: • Fair value losses on FVTPL investments in 1–6/2022 – optimism in financial markets before the start of more protection business (without investment due to financial market condit
Slide 15: Reinsurance
Reinsurance • Positive price developments in reinsurance markets • Higher insurance revenue due to growth in non- • Fair value losses on FVTPL investments in 1–6/2022 • Organic growth in business volume proportional business due to financial market conditions • Non-proportional reinsurance rates up
Slide 16: Non-life non-EU
Non-life non-EU • Organic growth, especially in motor, health • Increased volume of major losses • 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 sales through insurers’ own distribution • Higher insurance revenue reflecting portfolio growth • Higher interest revenue due to portfolio growth and networks as well as through agents and banks • Lower incurred claims – increased mortality due to higher reinvestment rates Co
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 1–6/2022 from change in fair • Positive net inflows in all companies and more favourable financial market
Slide 19: "Other" segment
“Other” segment Composition of profit before tax 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 ± x.y% – growth/decline compared to the end of the previous year. Sava Insurance Group / Financial investments 21 / 31
Slide 22: Net investment income and rate of return on the investment portfolio
Net investment income and rate of return on the investment portfolio € million 1–6/2022 1–6/2023 Difference Interest income 7.4 9.3 1.8 Change in fair value of FVTPL assets -8.8 1.8 10.6 Gains/losses on disposal of assets -0.3 -0.1 0.2 Change in expected credit losses (ECL) 0.3 0.2 -0.1 Other income
Slide 23: Asset allocation
Asset allocation € million 31/12/2022 30/6/2023 Difference Fixed income investments 1,174.9 1,214.3 39.4 Government bonds 734.9 744.3 9.4 Corporate bonds 421.4 445.8 24.5 Deposits & CDs 18.7 24.1 5.5 Shares and funds 47.0 42.6 -4.5 Shares 24.9 24.6 -0.3 Mutual funds 22.2 18.0 -4.2 Alternative invest
Slide 24: Classification of financial assets
Classification of financial assets • Reinvestment of sold equities in debt securities resulted in higher share of FVOCI investments Sava Insurance Group / Financial investments 24 / 31
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 30/6/2023 Book value of share Share capital (€ million) 71.9 30 June 2023 Market capitalisation (€ million) 376.6 Trading symbol POSR €35.08* 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 transi
Slide 28: Dividend policy
Dividend policy Dividend policy: distribution of between 35% and 45% of the net profit of the Sava Insurance Group. Dividend as % of consolidated profit • On 5 June 2023, the general meeting of shareholders approved the dividend proposal of €24,796,313.60 or €1.60 gross per share. The dividend was p
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