Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Insurance Group — Q1 2024 Earnings Presentation
30 slides from Sava Re,d.d's earnings presentation, May 17, 2024
Slide 1: Presentation of results 1–3/2024
Sava Insurance Group Presentation of results 1–3/2024 17 May 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 18.3% Net profit of €29.8m (1–3/2024: €20.1m) primarily in motor business, due to growth in average premiums and the number of policies sold Better insurance service result: higher revenue and favourable and in life business, due to improved
Slide 5: Key figures
Key figures Change €m, except % 1–3/2023 1–3/2024 2024 plan 2024/2023 Business volume 259.9 307.8 > 925 18.4% Gross premiums written 254.4 301.0 18.3% Profit, net of tax 20.1 29.8 > 70 48.3% Return on equity* 13.4% 18.0% > 10.5% +4.6 pp Combined ratio (non-life and reinsurance) 88.9% 83.8% < 95% -5.
Slide 6: Continued strong growth across all operating segments
Continued strong growth across all operating segments Growth/decline compared to the previous year Gross premiums written by class of insurance Sava Insurance Group / Presentation of results 1–3/2024 / Group results 6
Slide 7: Business volume: organic growth and inflationary price adjustments
Business volume: organic growth and inflationary price adjustments Sava Insurance Group / Presentation of results 1–3/2024 / Group results 7
Slide 8: Profit before tax: high revenue growth and favourable claims experience
Profit before tax: high revenue growth and favourable claims experience Sava Insurance Group / Presentation of results 1–3/2024 / Group results 8
Slide 9: Profit before tax: high revenue growth and favourable claims experience
Profit before tax: high revenue growth and favourable claims experience Sava Insurance Group / Presentation of results 1–3/2024 / Group results 9
Slide 10: Continued CSM growth
Continued CSM growth Growth/decline compared to year-end Sava Insurance Group / Presentation of results 1–3/2024 / Group results 10
Slide 11: Segment reporting
SEGMENT REPORTING
Slide 12: Non-life EU: high premium growth and favourable claims experience
Non-life EU: high premium growth and favourable claims experience • Growth mainly in private motor, driven by inflationary • Impact of higher insurance revenue due to premium • Larger portfolio and reinvestment at higher interest price adjustments and growth in the number of policies growth rates •
Slide 13: Life EU: robust growth in unit-linked premiums
Life EU: robust growth in unit-linked premiums • Higher revenue due to growth in the number of policies • Impact of one-off revenue of €0.7m in Q1 2023 – some • In Q1 2023, realised gains on sale of investments and and additional premiums on existing policies onerous contracts became profitable due
Slide 14: Reinsurance: vigorous premium growth and no major loss events
Reinsurance: vigorous premium growth and no major loss events • Price increases in line with reinsurance market • Impact of higher insurance revenue due to portfolio • Higher interest income as a result of investments at developments and new opportunities to grow volume growth higher interest rates
Slide 15: Non-life non-EU: strong premium growth
Non-life non-EU: strong premium growth • Growth in motor and property business due to • Increased insurance revenue due to growth in gross • Higher interest revenue reflecting portfolio growth increased number of policies written, with premium premiums and higher reinvestment rates growth also seen
Slide 16: Life non-EU: strong revenue growth
Life non-EU: strong revenue growth • Growth driven by volume growth, as well as updated • Growth in insurance revenue • Higher net insurance finance expenses due to higher actuarial models and assumptions discount rates Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 16
Slide 17: Pensions and asset management: robust growth in net fund inflows
Pensions and asset management: robust growth in net fund inflows • Growth in assets under management • Inflationary increases in costs • Increased asset management revenue • In Q1 2023, one-off income of €0.3m from the sale of a property • Effects of increased sales activity and strong fund returns
Slide 18: “Other” segment: stable performance of other activities
“Other” segment: stable performance of other activities Composition of profit before tax Sava Insurance Group / Presentation of results 1–3/2024 / Segment reporting 18
Slide 19: Financial investments
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Slide 20: 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 / Presentation of results 1–3/2024 / Financial investments 20
Slide 21: Improved return on investment portfolio
Improved return on investment portfolio €m 1–3/2023 1–3/2024 Difference Interest income at effective interest rate 4.4 6.2 1.8 Change in fair value of FVTPL assets 1.3 2.1 0.8 Gains/losses on disposal of assets 0.0 -0.1 -0.1 Change in expected credit losses (ECL) 0.1 -0.2 -0.3 Other income/expenses
Slide 22: High share of fixed-rate investments
High share of fixed-rate investments • Investing in highly rated government and corporate bonds to maintain a safe and liquid portfolio • Increased focus on active liquidity management by taking advantage of favourable market interest rates • Reinvestment yield for Q1 2024 at around 3.4% Sava Insura
Slide 23: Secure and stable investment portfolio
Secure and stable investment portfolio Sava Insurance Group / Presentation of results 1–3/2024 / Financial investments 23
Slide 24: POSR share and dividend policy
POSR SHARE AND DIVIDEND POLICY
Slide 25: Shareholders and share trading
Shareholders and share trading Basic information on Sava Re share 31/3/2024 Share capital (€m) 71.9 Book value of share Market capitalisation (€m) 486.6 31 March 2024 Trading symbol POSR €39.40 No. of shares 17,219,662 No. of own shares 1,721,966 No. of shareholders 4,360 * Fiduciary account. Sava I
Slide 26: 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 PROPOSAL * The 2024 dividend yield depends on the share price movement in the period between the date the dividend declaration date and the
Slide 27: Solvency position
SOLVENCY POSITION
Slide 28: 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 Measures not Presežna
Slide 29: Thank you.
Thank you. For more information: ir@sava-re.si www.sava-re.si
Slide 30: 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