Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Re — Non-Deal Roadshow (May 2011)
26 slides from Sava Re,d.d's roadshow presentation, May 2011
Slide 1: Slide 1
Slide 2: Sava Re Group and Sava Reinsurance Company Results 2010
Pozavarovalnica Sava, d. d. SAVA RE GROUP AND SAVA REINSURANCE COMPANY RESULTS 2010 Roadshow Stockholm, May 2011
Slide 3: Who We Are and Our Past Development
Pozavarovalnica Sava, d. d. WHO WE ARE AND OUR PAST DEVELOPMENT Roadshow Stockholm, May 2011
Slide 4: Development & Growth in Time
4 DEVELOPMENT & GROWTH IN TIME DEVELOPMENT 1973 1991 THROUGHOUT 2003 TIME Consolidation of Sava Re’s position KEY STORY BEHIND Beginnings during Yugoslav in Slovenia and crystallisation of socialist period ownership structure DEVELOPING REINSURANCE BUSINESS 1973 – Starts as reinsurance department 19
Slide 5: Development & Growth in Time
5 DEVELOPMENT & GROWTH IN TIME DEVELOPMENT 2004 2004 THROUGHOUT 2008 TIME 2008 2008 KEY STORY BEHIND Acquisition-driven expansion to Expansion to life insurance insurance markets of former business and return to Croatia DEVELOPING INSURANCE Yugoslavia BUSINESS 2004 – Acquisition of a minority stake
Slide 6: Introduction to the Sava Re Group
6 INTRODUCTION TO THE SAVA RE GROUP Overview 10 companies in reinsurance, non-life and life insurance business Reinsurance relations with numerous players worldwide Maribor Maribor Insurance operations in 6 markets of former Yugoslavia Ljubljana (1) Ljubljana Total consolidated GPW of EUR
Slide 7: Who We Are Today – Key Segments
7 WHO WE ARE TODAY – 3 KEY SEGMENTS REINSURANCE INSURANCE SLOVENIA SLOVENIA INTERNATIONAL INSURANCE FORMER YU
Slide 8: Our Markets
8 OUR MARKETS THE SAVA RE REINSURANCE NON LIFE INSURANCE LIFE INSURANCE PREMIUM INDEX GROUP INCOME 2010 (10/09) SLOVENIA Sava Re Tilia Insurance Company Tilia Insurance Company R: EUR 120,8m + 0,4% (Composite Insurer) (Composit Insurer) NL: EUR 63,7m + 2,8% 99,7% owned by Sava Re L: EUR 10,2m - 1,5%
Slide 9: Ownership Structure of Sava Re
9 OWNERSHIP STRUCTURE OF SAVA RE 5.481 shareholders 75% free float 3% foreign investors POSR (listed on the LJSE since 14 June 2008) P/B1 = 0,48 P/E2 = 13,56 P/GPW3 = 0,29 1) P/B = price per share on 31 December 2010 / book value of shares on 31 December.2010 2) P/E = price per share on 31 December
Slide 10: Where We Are Going
Pozavarovalnica Sava, d. d. WHERE WE ARE GOING Roadshow Stockholm, May 2011
Slide 11: Permanent Growth
11 PERMANENT GROWTH CAGR 2008 – 2010 GPW million EUR (consolidated) 2010 Slovenia55,2 International 65,8 To balance international Reinsurance 2009 Slovenia63,7 International 56,6 and domestic portfolio 2008 Slovenia62,3 International 50,0 14,8% 2010 Slovenia63,7 International 62,1 Greenfield in Croa
Slide 12: Our Investment Story: Reinsurance Growth on Foreign Markets
12 OUR INVESTMENT STORY REINSURANCE GROWTH ON FOREIGN MARKETS 160 140 120 (million EUR) 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SLOVENIA WESTERN BALKANS ASIA MIDDLE EAST CIS EUROPE AFRICA OTHER CRforeignbusiness 140% 136% Asian markets will be the source of our futur
Slide 13: Our Investment Story: Western Balkans Have Growth Potential
13 OUR INVESTMENT STORY THE WESTERN BALKANS HAVE GROWTH POTENTIAL THE SAVA RE OUR MARKET SHARES MARKET PENETRATION & GROUP VOLUME 2010 INSURANCE CROATIA 2010: NL 0,92%; L 0,39% TOTAL PREMIUM: EUR 1,2bn 2009: NL 0,75%; L 0,40% PENETRATION IN GDP: 2,8% FORMER YU 2008: NL 0,54%; L 0,31% PREMIUM/CAPITA:
Slide 14: Our Investment Story: Regional Focus on Slovenian Direct Market
14 OUR INVESTMENT STORY REGIONAL FOCUS ON THE SLOVENIAN DIRECT MARKET INSURANCE SLOVENIA THE SAVA RE OUR MARKET SHARES MARKET PENETRATION & GROUP VOLUME 2010 SLOVENIA 2010: NL 4,4%; L 1,6% TOTAL PREMIUM: EUR 2,1bn 2009: NL 4,3%; L 1,6% PENETRATION IN GDP: 5,8% 2008: NL 4,2%; L 1,7% PREMIUM/CAPITA: E
Slide 15: 2010 Was a Good Year
Pozavarovalnica Sava, d. d. 2010 WAS A GOOD YEAR Roadshow Stockholm, May 2011
Slide 16: 2010 – Year of Positive Turnaround
16 2010 – YEAR OF POSITIVE TURNAROUND SAVA RE GROUP SAVA REINSURANCE COMPANY - Increase in gross premiums in all business segments - Achieved strategic goal of balance between international and domestic portfolio - Adjusting reserving levels to Group policy - Largest growth of foreign reinsurance pr
Slide 17: 2010 – Year of Positive Turnaround: GPW by Segment
17 2010 – YEAR OF POSITIVE TURNAROUND Consolidated GPW by operating segment 300,0 251,4 259,1 229,6 11,4 12,5 250,0 10,9 200,0 119,7 125,8 (million EUR) 106,4 150,0 100,0 50,0 112,3 120,3 120,8 0,0 2008 2009 2010 Reinsurance business Non - life business Life business Gross Premium Written = GPW (1)
Slide 18: 2010 – Year of Positive Turnaround
18 2010 – YEAR OF POSITIVE TURNAROUND ( EUR ) Sava Re Group Sava Reinsurance Company 2009 2010 2009 2010 Gross premiums written 251.416.588 259.103.050 147.082.330 142.861.784 Year-on-year change 9,5% 3,1% 9,2% -2,9% International premium as % of total GPW 45,9% 50,2% 41,9% 50,0% Net incurred loss r
Slide 19: Sava Re Group
Pozavarovalnica Sava, d. d. SAVA RE GROUP
Slide 20: 2010 – Year of Positive Turnaround: GPW and Ratios
20 2010 – YEAR OF POSITIVE TURNAROUND Consolidated GPW 160,0 60,0% 140,0 50,2% 50,0% 120,0 43,1% 45,9% (million EUR) 100,0 40,0% 35,6% 80,0 30,0% 60,0 22,3% 20,0% 40,0 20,0 10,0% 0,0 0,0% 2006 2007 2008 2009 2010 Slovenia International International premium as %of total GPW Net ER Net ratios-SavaReG
Slide 21: Investment Structure - Sava Re Group
21 INVESTMENT STRUCTURE - SAVA RE GROUP EUR304,3m EUR335,8m EUR364,0m 100% 3,1% 1,9% 5,5% 90% 11,2% 11,6% 10,8% 9,1% 6,6% 80% 3,2% 11,6% 5,1% 70% 5,6% 20,3% 60% 21,1% 19,0% 50% 20,8% 40% 23,4% 23,4% 30% 20% 35,6% 24,1% 27,0% 10% 0% 31 Dec 2008 31 Dec 2009 31 Dec 2010 Deposits and CDs Government bond
Slide 22: Investment Return of Sava Re Group
22 INVESTMENT RETURN OF SAVA RE GROUP 370,0 364,0 4,0% 360,0 3,6% 3,0% 350,0 340,0 335,8 2,0% (million EUR) 330,0 320,0 1,0% 304,3 310,0 0,0% 300,0 0,3% 290,0 -1,4% -1,0% 280,0 270,0 -2,0% 31 Dec 2008 31 Dec 2009 31 Dec 2010 Invested assets Investment return (EUR) 2008 2009 2010 Investment income 29
Slide 23: Plans 2011
Pozavarovalnica Sava, d. d. PLANS 2011 Roadshow Stockholm, May 2011
Slide 24: Key Actions in 2011
24 KEY ACTIONS IN 2011 Reinsurance Insurance Diversifying and growing Profitability of insurance the reinsurance portfolio portfolio Profitability of reinsurance Improving the portfolio underwriting process Capital adequacy Developing (Solvency II) IT systems Cost control Strengthening sales network
Slide 25: Strategic Orientation
25 STRATEGIC ORIENTATION Reinsurance Insurance Slovenia Insurance W Balkan Annual average growth on Tilia to achieve Growth of non-life international markets 5%-market share insurance business > 8% (organic growth) Accelerated growth in Decreasing premium from life business Taking advantage of high
Slide 26: Plan 2011
26 PLAN 2011 Sava Re Group Sava Reinsurance Company (EUR) 2010 Plan 2011 2010 Plan 2011 Net earned premiums 231.874.029 244.239.929 123.497.230 121.411.427 Gross premiums written 259.103.050 266.984.900 142.861.784 138.093.827 Net incurred loss ratio 60,4% 62,3% 66,2% 71,4% Net expence ratio 35,7% 3