Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Re Group — Q1 2015 Earnings Presentation
25 slides from Sava Re,d.d's earnings presentation, 2015
Slide 1: Sava Re Group 1-3/2015 Results
Sava Re Group 1-3/2015 Results
Slide 2: Sava Re Group Profile Overview
Sava Re Group Profile SAVA RE GROUP PROFILE 2 Overview 2nd largest insurance group in the region Reinsurance business worldwide Insurance business in 6 insurance markets of Western Balkans Gross Premium Written 2014: € 468m Rating: S&P BBB+ (Jul 2014) AM Best A- (Oct 2014) Ljubljana stoc
Slide 3: Sava Re Group Structure at 31 Mar 2014
Sava Re Group Profile SAVA RE GROUP STRUCTURE at 31 Mar 2014 3 Sava Reinsurance Company Insurance business Insurance business Other business Slovenia International 100,0 99,99 Sava osiguranje 20,0 % Moja naložba Zavarovalnica ZavarovalnicaTilia Tilia(C) % % Serbia (NL) Slovenia 5,0% 100,0 Zavarovaln
Slide 4: POSR Share
Sava Re Group Profile „POSR“ SHARE 4 The movement in the POSR share price Basic details about the POSR share compared to the SBI TOP stock index 31.3.2014 31.3.2015 18.0 860 16.0 840 Share capital (€) 71.856.376 71.856.376 14.0 820 Share price of POSR (€) 12.0 800 SBITOP stock index No. of shares 17
Slide 5: Sava Re Group – Highlights
Highlights SAVA RE GROUP – HIGHLIGHTS 5 Increase in profit and higher ROE Growth in premium on international reinsurance markets Better underwriting results of Reinsurance and Slovenian Non-life segments Big impact of exchange rate differences on different categories; net effect € -0,5 milli
Slide 6: Sava Re Group – 1-3/2015 Results
Highlights SAVA RE GROUP – 1-3/2015 RESULTS 6 Change Sava Re Group 1-3 2014 1-3 2015 Plan 2015 Actual/plan 2015/2014 Gross premiums written (€ 146,0 152,5 476,5 4,5% 32,0% million) Net expanse ratio 30,4% 30,8% 32,4% +0,4 p.p. -1,6 p.p. Net expanse ratio (excluding 30,4% 30,7% 32,4% +0,3 p.p. -1,7 p
Slide 7: Breakdown of the Consolidated GPW
Highlights BREAKDOWN OF THE CONSOLIDATED GPW 7 +4,4 180.0 Gross Premiums Written % 160.0 152.5 146.0 140.0 120.0 -2,6% 100.0 +33,8 85.9 83.7 80.0 % 60.0 +6,9 -4,2% 34.8 % -4,2% 40.0 26.0 21.2 20.3 20.0 11.6 12.4 1.3 1.3 0.0 Reinsurance Non-life Slovenia Non-life Life Slovenia Life International Tota
Slide 8: Breakdown of the Profit Before Tax
Highlights BREAKDOWN OF THE PROFIT BEFORE TAX 8 Breakdown of the consolidated profit before tax by quarters (non- cumulative) 14,4 11,9 9,4m 7,1m 8,1m m m 16.0 14.0 2.5 12.0 2.9 10.0 7.2 1.6 8.0 3.6 6.0 2.3 8.8 4.0 3.8 8.2 4.4 5.2 2.0 2.3 0.0 -0.2 0.6 -0.4 0.2 -0.3 -1.1 1-3 2014 4-6 2014 7-9 2014 10
Slide 9: Consolidated Profit Before Tax by Operating Segments
Highlights CONSOLIDATED PROFIT BEFORE TAX BY 9 OPERATING SEGMENTS Consolidated profit before tax by operating segments and quarters (non- cumulative) 14,4 11,9 9,4m 7,1m 8,1m m m 16.0 0.1 14.0 2.5 12.0 2.5 3.0 10.0 1.8 8.0 3.8 5.3 1.3 4.9 6.0 0.3 2.5 0.6 4.0 3.2 1.2 6.6 2.0 4.4 4.7 2.6 3.2 -0.3 -0.2
Slide 10: Results by Operating Segment – Reinsurance Business
Sava Re Group results RESULTS BY OPERATING SEGMENT – 10 40.0 REINSURANCE Gross Premiums Written 34.8 BUSINESS 5.0 4.0 Underwriting result 4.3 35.0 30.0 3.0 26.0 1.9 25.0 2.0 1.5 20.0 1.0 15.0 0.0 10.0 -1.0 1-3 2014 1-3 2015 1-3 2014 1-3 2015 5.0 excl. FX excl. FX -2.0 -1.8 0.0 differences difference
Slide 11: Results by Operating Segment – Non-life Slovenia
Sava Re Group results RESULTS BY OPERATING SEGMENT – NON-LIFE 11 95.0 SLOVENIA Gross Premiums Written Underwriting result 90.0 3.0 85.9 2.6 83.7 85.0 2.5 80.0 2.0 75.0 70.0 1.5 65.0 1.0 60.0 0.5 0.4 55.0 50.0 0.0 € million 1-3 2014 1-3 2015 € million 1-3 2014 1-3 2015 Drop in GPW: ZM € 1,0 million,
Slide 12: Results by Operating Segment – Non-life International
Sava Re Group results RESULTS BY OPERATING SEGMENT – NON-LIFE 12 13.5 INTERNATIONAL Gross Premiums Written Underwriting result 13.0 0.0 12.4 12.5 1-3 2014 1-3 2015 12.0 11.6 -0.5 -0.5 11.5 11.0 -1.0 10.5 10.0 -1.5 -1.3 € million 1-3 2014 1-3 2015 € million Growth of GPW in Sava osiguranje (€ 0,7 mil
Slide 13: Results by Operating Segment – Life Slovenia
Sava Re Group results RESULTS BY OPERATING SEGMENT – LIFE 13 SLOVENIA 30.0% Net expense ratio 22.0 Gross Premiums Written 21.2 21.0 25.0% 23.2% 20.3 22.2% 20.0 20.0% 19.0 15.0% 18.0 10.0% 17.0 5.0% 16.0 15.0 0.0% 1-3 2014 1-3 2015 1-3 2014 1-3 2015 € million Premium dropped in both Slovenian subsidi
Slide 14: Results by Operating Segment – Life International
Sava Re Group results RESULTS BY OPERATING SEGMENT – LIFE 14 INTERNATIONAL 1.5 Gross Premiums Written 1.4 1.3 Net expense ratio 1.3 1.3 70.0% 61.3% 59.2% 1.2 60.0% 1.1 50.0% 1.0 0.9 40.0% 0.8 30.0% 0.7 20.0% 0.6 10.0% 0.5 0.0% € million 1-3 2014 1-3 2015 1-3 2014 1-3 2015 Premium of Illyria Life dro
Slide 15: Investment Portfolio
Financial position of Sava Re Group INVESTMENT PORTFOLIO 15 (€ million) Investment portfolio* 31.12.201 4 988,5 +23,4 Main factors of change + cash flow of (re)insurance business (€ 7,7 million); + net foreign exchange differences (€ 5,5 million); + change in fair value reserve of investments (€ 4,4
Slide 16: Investment Portfolio Structure
Financial position of Sava Re Group INVESTMENT PORTFOLIO STRUCTURE 16 Main structural shift compared to 31 Dec 2014: Decreased allocation to government bonds and increased allocation to corporate bonds € 988,5 € 1.011,9 Structural shift mar.2015/dec.2014 million million Diversificatio 100% 2.1% 2.0%
Slide 17: Sava Re Group Exposure by Region
Financial position of Sava Re Group SAVA RE GROUP EXPOSURE BY REGION 17 In line with the investment policy of lowering exposure to Slovenia (-2,0 percentage points) Increased exposure to America and Australia due to currency matching of assets and liabilities 4.8% 6.9% Structural shift 9.5% 9.2% mar
Slide 18: Net Investment Income and Return on the Investment Portfolio
Financial position of Sava Re Group NET INV. INCOME OF AND RETURN ON THE INV.18 PORTFOLIO (€ million) Absolute 1-3/2014 1-3/2015 change Investment income 10,1 12,6 +2,5 Investment expenses 1,5 1,2 -0,3 Net inv. income of the financial investment 8,6 11,3 +2,7 Net inv. income of the investment portfo
Slide 19: Movements in Equity
Financial position of Sava Re Group MOVEMENTS IN EQUITY 19 290,000,000.0 + 4,7 % 285,000,000.0 4,489,257.0 1,099,114.0 346,482.2 132,001.0 280,000,000.0 9,985,453.0 275,000,000.0 284,425,736.8 270,000,000.0 271,528,624.0 265,000,000.0 260,000,000.0 As of 31 Dec 2014 Net profit of the Fair value rese
Slide 20: Thank You for Your Attention!
Pozavarovalnica Sava, d. d. THANK YOU FOR YOUR ATTENTION!
Slide 21: Sava Re Group Exposure to Slovenia
SAVA RE GROUP EXPOSURE TO SLOVENIA 21 (€) 31.12.2014 31.3.2015 Investment type Amount Structure Amount Structure 51.751.41 51.624.47 Deposits and CDs 5,3% 5,2% 0 3 226.338.5 217.637.6 Government bonds 23,2% 21,8% 25 69 80.052.28 77.598.05 Corporate bonds 8,2% 7,8% 5 5 19.758.87 20.562.14 Shares 2,0%
Slide 22: Sava Re Group Exposure by Industry
SAVA RE GROUP EXPOSURE BY INDUSTRY 22 • Increased exposure to "other" industries (information technology, health and consumer goods industry) Structural shift mar.2015/dec.2014 12.5% 13.4% 8.5% 8.2% 1.8% 1.9% Other 1.0% -0.2% Industry sec. 50.1% 50.0% Finance sec. 0.1% -0.1% Government sec. 27.2% 26
Slide 23: Sava Re Group Rating Profile
SAVA RE GROUP RATING PROFILE 23 No significant changes in the credit picture compared to the end of 2014. • Increased investments in assets rated AA or better due to buying of corporate bonds • Reduced share of investment without rating due to maturity of deposits Structural shift 8.9% 7.8% mar.2015
Slide 24: Investment Income by Type
INVESTMENT INCOME BY TYPE 24 (€ million) Absolute 1-3/2014 1-3/2015 change Income Interest income 6,5 5,6 -0,9 Change in fair value of investments in FVPL group 0,3 0,5 0,3 Gains on disposal of investments other IFRS groups 2,8 0,2 -2,6 Income from associates 0,0 0,1 0,1 Income from dividends 0,0 0,
Slide 25: Investment Expenses by Type
INVESTMENT EXPENSES BY TYPE 25 (€ million) Absolute 1-3/2014 1-3/2015 change Expenses Interest expenses 0,4 0,3 0,0 Change in fair value of investments in FVPL group 0,1 0,0 -0,1 Losses on disposal of investments other IFRS groups 0,2 0,2 -0,1 Impairments 0,0 0,0 0,0 Negative foreign exchange differ