Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Insurance Group — H1 2024 Earnings Presentation
31 slides from Sava Re,d.d's earnings presentation, Aug 23, 2024
Slide 1: Presentation of results 1–6/2024
Sava Insurance Group Presentation of results 1–6/2024 23 August 2024
Slide 2: Contents
CONTENTS 01 Group results 02 Segment reporting 03 Financial investments 04 POSR 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 13.9% Net profit of €44.5m (1–6/2024: €40.0m) primarily in the motor business due to growth in average premiums and the number of policies sold Better insurance service result: higher revenue in all segments, and in the life business due to
Slide 5: Key figures
Key figures Change €m, except % 1–6/2023 1–6/2024 2024 plan 2024/2023 Business volume 494.6 563.8 > 925 14.0% Gross premiums written 483.3 550.6 13.9% Profit, net of tax 40.0 44.5 > 70 11.1% Return on equity* 13.3% 13.8% > 10.5% +0.4 pp Combined ratio (non-life and reinsurance) 90.1% 89.7% < 95% -0.
Slide 6: Continued growth across all operating segments
Continued growth across all operating segments Business volume by segment +14.0% (€m) 563.8 494.6 +17.8% 309.6 262.8 +14.4% +1.4% +12.5% +13.8% +18.7% +8.0% 84.1 96.2 79.4 80.5 49.4 55.6 5.8 6.5 11.2 13.3 1.9 2.1 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and asset Other To
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) +14.0% +0.8 +2.1 +0.2 563.8 +6.2 +12.1 +1.1 +46.8 494.6 1–6/2023 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and Other 1–6/2024 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 +17.8% (€m) 57.3 48.6 +13.9% 27.9 24.5 +52.7% -0.3% 12.5 9.7 9.7 +10.0% 8.2 +114.8% -41.8% 4.2 3.9 2.7 1.3 0.8 0.4 0.4 -0.2 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and as
Slide 9: Profit before tax: high revenue growth and favourable claims experience
Profit before tax: high revenue growth and favourable claims experience Change in profit before tax by segment (€m) +17.8% +1.4 +0.4 57.3 +4.3 -0.3 -0.5 +3.4 48.6 0.0 1–6/2023 Non-life EU Life EU Reinsurance Non-life non-EU Life non-EU Pensions and Other 1–6/2024 asset management Sava Insurance Grou
Slide 10: Impact of natural catastrophe claims
Impact of natural catastrophe claims Natural catastrophe claims (€m) 45.6 28.3 Estimated impact of July 23.3 22.9 22.8 hailstorms on Q3 result €16.5m 16.9 8.8 2018 2019 2020 2021 2022 2023 1–6/2024 Includes net claims affecting the (re)insurance portfolios of the Group companies resulting from natur
Slide 11: Continued CSM growth
Continued CSM growth CSM by segment +10.3% (€m) 171.3 +7.3% 155.3 142.3 132.6 +105.2% +1.4% +3.7% 11.2 9.4 +7.3% 6.3 6.4 9.0 5.5 1.9 2.1 Non-life EU Life EU Reinsurance Life non-EU Pensions Total 31/12/2023 30/6/2024 Sava Insurance Group / Presentation of results 1–6/2024 / Group results 11
Slide 12: Segment reporting
SEGMENT REPORTING
Slide 13: Non-life EU: Revenue growth and improved cost efficiency
Non-life EU: Revenue growth and improved cost efficiency Gross premiums written Insurance service result Finance result Net investment inc./exp. (€m) +17.8% (€m) +2.7% (€m) Net ins. finance inc./exp. 309.6 28.4 29.2 4.4 262.8 1.6 6.2 3.5 -1.9 -1.9 1–6/2023 1–6/2024 1–6/2023 1–6/2024 1–6/2023 1–6/202
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) +8.7% (€m) +8.2% (€m) Net ins. finance inc./exp. 31.9 10.1 3.0 29.3 9.3 2.4 4.6 4.2 -1.6 -1.8 1–6/2023 1–6/2024 1–6/2023 1–6/2024 1–6/2023 1–6
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) +1.4% (€m) +73.7% (€m) Net ins. finance inc./exp. 79.4 80.5 14.0 Net exchange rate diff. 2.0 0.8 8.1 3.2 3.7 1.3 0.1 -2.6 -2.9 1–6/2023 1–6/2024 1–6/2023 1–6/2024 1–6/2023 1
Slide 16: Non-life non-EU: strong premium growth and improved claims experience
Non-life non-EU: strong premium growth and improved claims experience Gross premiums written Insurance service result Finance result Net investment inc./exp. (€m) 12.5% (€m) +62.0% (€m) Net ins. finance inc./exp. 55.6 2.9 1.6 49.4 1.1 1.8 2.0 1.4 -0.3 -0.4 1–6/2023 1–6/2024 1–6/2023 1–6/2024 1–6/202
Slide 17: Life non-EU: revenue growth
Life non-EU: revenue growth Insurance revenue Insurance service result Finance result Net investment inc./exp. (€m) +50.9% (€m) +1.0% (€m) Net ins. finance inc./exp. 3.8 0.6 0.6 0.3 0.4 2.5 0.7 0.5 -0.1 -0.3 1–6/2023 1–6/2024 1–6/2023 1–6/2024 1–6/2023 1–6/2024 • 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) 65.7% 65.4% +10.0% +19.0% 4.2 11.2 3.9 9.4 1–6/2023 1–6/2024 1–6/2023 1–6/2024 1–6/2023 1–6/2024 • Growth in assets under management • High growth in revenue and l
Slide 19: “Other” segment: one-off impacts
“Other” segment: one-off impacts Profit before tax Composition of profit before tax 1–6/2023 (€m) (€m) 1–6/2024 0.4 0.0 Other -0.1 0.3 Assistance -0.2 0.4 1–6/2023 1–6/2024 1.7 Associated companies 1.4 Interest expense -1.6 on subordinated debt and segment expenses -1.8 Sava Insurance Group / Presen
Slide 20: Financial investments
FINANCIAL INVESTMENTS
Slide 21: Growth in assets under management
Growth in assets under management Investment portfolio and assets under management (€m) +5.8% +8.8% 4,166 +4.4% +7.5% +8.9% +14.3% 4,051 3,828 652 3,601 3,647 614 3,496 542 3,349 490 Assets under management 494 463 €2,639m Mutual fund assets 422 670 711 Assets of 609 547 561 policyholders 523 499 wh
Slide 22: Improved return on investment portfolio
Improved return on investment portfolio €m 1–6/2023 1–6/2024 Difference Interest income at effective interest rate 9.3 12.5 3.3 Change in fair value of FVTPL assets 1.8 2.0 0.2 Gains/losses on disposal of assets -0.1 0.1 0.3 Change in expected credit losses (ECL) 0.2 0.2 0.0 Other income/expenses fr
Slide 23: High share of fixed-rate investments
High share of fixed-rate investments €m 31/12/2023 30/6/2024 Difference Investment structure Fixed-rate investments 1,302.4 1,312.8 10.4 Fixed-rate 86.6% investments 86.0% Government bonds 818.8 811.3 -7.6 Corporate bonds 458.0 476.8 18.8 2.7% Shares and funds 2.8% Deposits & CDs 25.6 24.8 -0.9 Alte
Slide 24: Secure and stable investment portfolio
Secure and stable investment portfolio Rating profile Exposure by region Exposure by industry Not rated 4.9% 2.8% 1.1% Other 4.0% 5.8% 1.2% Other 11.1% 10.7% 4.7% 6.9% B USA 11.8% 10.3% Finance 6.5% 6.4% BB 18.2% 15.9% Non-EU Consumer 7.2% 12.1% 12.2% 7.1% BBB countries goods 9.3% 9.9% Utilities 26.
Slide 25: POSR share and dividend policy
POSR SHARE AND DIVIDEND POLICY
Slide 26: Shareholders and share trading
Shareholders and share trading 30/6/2024 Share capital (€m) 71.9 Book value of share Market capitalisation (€m) 505.2 30 June 2024 Trading symbol POSR €38.63 No. of shares 17,219,662 No. of own shares 1,721,966 No. of shareholders 4,379 Shareholders structure as at 30 June 2024 Intercapital securiti
Slide 27: 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. Sava Insurance Gro
Slide 28: Solvency position
SOLVENCY POSITION
Slide 29: 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 30: Thank you.
Thank you. For more information: ir@sava-re.si www.sava-re.si
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