Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Insurance Group — 9M 2023 Earnings Presentation
31 slides from Sava Re,d.d's earnings presentation, Nov 17, 2023
Slide 1: 1–9/2023 unaudited results
Sava Insurance Group 1–9/2023 unaudited results 17 November 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 1–9/2023
Highlights 1–9/2023 Growth in gross written premiums of In the summer of 2023, Slovenia and the Net profit of €36.5 million 13.7% wider region were hit by a wave of (1–9/2022: €35.0 million) storms and floods with a significantly strongest growth in motor business, impact on Q3 earnings of €27.1 mil
Slide 6: Key figures
Key figures Change € million, except % 1–9/2022 1–9/2023 2023 plan 2023/2022 Business volume 625.3 711.2 > 800 13.7% Gross premiums written 608.3 691.6 13.7% Insurance revenue 447.9 517.7 15.6% Profit, net of tax 35.0 36.5 > 53 4.5% Return on equity* 8.2% 8.2% > 9.5% -0.0 p.p. Combined ratio (non-li
Slide 7: Continued growth across all operating segments
Continued growth across all operating segments Growth/decline compared to the previous year Gross premiums written by class of insurance Sava Insurance Group / Group results 7 / 31
Slide 8: Business volume: organic growth and price adjustment for inflation
Business volume: organic growth and price adjustment for inflation Sava Insurance Group / Group results 8 / 31
Slide 9: Adverse impact of weather events and strong profit growth in reinsurance
Adverse impact of weather events and strong profit growth in reinsurance Sava Insurance Group / Group results 9 / 31
Slide 10: Adverse impact of weather events and strong profit growth in reinsurance
Adverse impact of weather events and strong profit growth in reinsurance Sava Insurance Group / Group results 10 / 31
Slide 11: CSM growth across all business segments
CSM growth across all business segments Sava Insurance Group / Group results 11 / 31
Slide 12: Segment reporting
SEGMENT REPORTING
Slide 13: Non-life EU: profits impacted by severe weather events in the summer
Non-life EU: profits impacted by severe weather events in the summer • Growth mainly in personal motor, driven by • Impact of summer weather events and related • In 1–9/2022: adverse impact of change in fair value of inflation-adjusted price increases and increased expenses (reinstatement of reinsur
Slide 14: Life EU: higher profit due to improved financial market developments
Life EU: higher profit due to improved financial market developments • Sales stronger than last year • Insurance service revenue higher reflecting shift in • In 1–9/2022: adverse impact of change in fair value • Business mix shifts towards life risk products with a business mix (more risk policies w
Slide 15: Reinsurance: benign loss ratio
Reinsurance: benign loss ratio • Favourable rate developments in reinsurance • Higher insurance revenue reflecting growth in non- • In 1–9/2022: adverse impact of change in fair value markets proportional business of FVTPL investments due to financial market • Organic growth in business volume • Dif
Slide 16: Non-life non-EU: adverse loss experience
Non-life non-EU: adverse loss experience • Growth in motor, health and property, • Impact of severe weather events and some other large • Higher interest revenue reflecting portfolio driven by both organic growth and price claims growth and higher reinvestment rates increases • Impact of claims infl
Slide 17: Life non-EU: strong revenue growth
Life non-EU: strong revenue growth • Increased sales through own distribution channels as • Higher insurance revenue due to portfolio growth • Higher interest revenue reflecting portfolio growth and well as through agencies and banks higher reinvestment rates Sava Insurance Group / Segment reporting
Slide 18: Pensions and asset management: robust growth in net fund inflows
Pensions and asset management: robust growth in net fund inflows • Higher assets under management • Fewer insured persons reaching retirement eligibility • Cost increases as a result of inflationary pressures • Negative impact in 1–9/2022 from change in fair • Positive net inflows in all companies a
Slide 19: “Other” segment: higher profits for healthcare and assistance services
“Other” segment: higher profits for healthcare and assistance services Composition of profit before tax Sava Insurance Group / Segment reporting 19 / 31
Slide 20: Financial investments
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Slide 21: Growth in assets under management
Growth in assets under management ± x.y% – growth/decline compared to the end of the previous year. Sava Insurance Group / Financial investments 21 / 31
Slide 22: Improved return on the investment portfolio
Improved return on the investment portfolio € million 1–9/2022 1–9/2023 Difference Interest income at the effective interest rate 11.2 14.7 3.5 Change in fair value of FVTPL assets -10.3 1.4 11.7 Gains/losses on disposal of assets 0.0 -0.3 -0.3 Change in expected credit losses (ECL) 0.2 0.2 -0.1 Oth
Slide 23: Investment portfolio: 82.7% fixed-rate
Investment portfolio: 82.7% fixed-rate € million 31/12/2022 30/9/2023 Difference Fixed-rate investments 1,173.6 1,221.9 48.2 Government bonds 734.5 745.2 10.7 Corporate bonds 420.3 448.7 28.4 Deposits & CDs 18.8 28.0 9.1 Shares and funds 47.0 40.6 -6.5 Shares 24.9 23.2 -1.7 Mutual funds 22.2 17.4 -4
Slide 24: Investment portfolio: 85.4% FVOCI assets
Investment portfolio: 85.4% FVOCI assets • No significant change in asset allocation since year-end 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 30/9/2023 Book value of share Share capital (€ million) 71.9 30 September 2023 Market capitalisation (€ million) 365.7 €35.37* Trading symbol No. of shares POSR 17,219,662 * Higher book value of share as a result of higher equity following transition to IFRS 17 and IFR
Slide 28: Improved dividend yield
Improved 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 5 June 2023, the general meeting of shareholders approved the dividend proposal of €24,796,313.60 or €1.60 gross per share. The divide
Slide 29: Solvency position
SOLVENCY POSITION
Slide 30: Solid solvency position
Solid solvency position 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