Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Insurance Group — H1 2022 Earnings Presentation
35 slides from Sava Re,d.d's earnings presentation, Aug 31, 2022
Slide 1: Sava Insurance Group 1–6/2022 unaudited results
Sava Insurance Group 1–6/2022 unaudited results 31 August 2022 Presenting and Q&A: Q&A: Tadej Mendiževec, Polona Pirš Director of Zupančič, Financial Member of the Operations and Management Asset Board Management
Slide 2: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 3: Highlights 1–6/2022
Highlights 1–6/2022 4.5% growth in gross premiums written – largest growth in motor business, reflecting more policies sold and higher average premiums; growth also in the reinsurance segment, driven by favourable price developments in global reinsurance markets, and in foreign life business because
Slide 4: Key figures
Key figures Change € million, except % 1–6/2021 1–6/2022 2022 plan 2022/2021 Group Operating revenue 363.7 364.2 > 700 0.1% Gross premiums written 414.5 433.0 4.5% Net expense ratio, including operating revenue* 27.7% 28.5% 31 ̶ 32% +0.9 p.p. Return on the investment portfolio* 1.7% 1.4% 1.4% -0.3 p
Slide 5: Breakdown of consolidated GPW
Growth/decline Breakdown of consolidated GPW compared to the previous year Consolidated gross premiums written by class of insurance 5 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Development areas 2022
Slide 6: Growth in consolidated GPW of 4.5%
Growth in consolidated GPW of 4.5% 6 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Development areas 2022
Slide 7: Breakdown of consolidated revenue
Growth/decline Breakdown of consolidated revenue compared to the previous year • Earned premiums • Premiums from annuities • Income from resolving TBS • Other technical income (including commision) • Income from managing Team assistance cases • Other income pension company’s funds • For life busines
Slide 8: Breakdown of consolidated profit before tax
Breakdown of consolidated profit before tax Growth/decline compared to the previous year 8 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Development areas 2022
Slide 9: Decrease in profit before tax of 34.2%
Decrease in profit before tax of 34.2% (after benefitting from lower claims frequency in 2020 and 2021) Negative impact on claims: claims provisions increased due to claims inflation, storms, and post-pandemic normalisation of claims frequency in motor insurance. 9 Group results • Segment reporting
Slide 10: Despite the drop, the result is still above the last pre-pandemic year
Despite the drop, the result is still above that recorded in the last pre-pandemic year 10 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Development areas 2022
Slide 11: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 12: Results by operating segment – reinsurance
Results by operating segment – reinsurance • Growth in gross premiums written due to new • Stronger underwriting result owing to lower net • Weaker investment result due to higher expenses for fair business and price rises in international claims incurred and higher net premiums value changes of FVT
Slide 13: Results by operating segment – non-life Slovenia
Results by operating segment – non-life Slovenia • Growth in gross premiums written in motor • Weaker underwriting result owing to lower net • Weaker result chiefly due to higher expenses for insurance, mainly in the private motor segment, premiums earned and higher net claims incurred, which fair v
Slide 14: Results by operating segment – non-life international
Results by operating segment – non-life international • Growth in gross premiums across all companies; • Stronger underwriting result owing to net • Investment result at the year-on-year level motor insurance experienced the strongest growth, premiums earned growing faster than net claims property i
Slide 15: Results by operating segment – life Slovenia
Results by operating segment – life Slovenia • Weaker gross premiums written due to less • Net expense ratio increased as gross premiums • Lower net investment income, chiefly due to single premium payments compared to the same written decreased while costs, mainly higher expenses for fair value cha
Slide 16: Results by operating segment – life international
Results by operating segment – life international • Growth in gross premiums written owing to • Increase in expense ratio due to higher costs, both • Stronger investment result owing to higher increased sales of own network and sales acquisition costs and other operating costs, among the interest in
Slide 17: Results by operating segment – pensions and asset management
Results by operating segment – pensions and asset management • Recently, more insured persons remained in the • Increase in revenues owing to more assets • Increase in operating costs due to growth in accumulation part of the pension plan after under management compared to a year earlier business vo
Slide 18: Results by operating segment – other
Results by operating segment – other 18 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Development areas 2022
Slide 19: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 20: Investment portfolio and AuM
Investment portfolio and AuM 20 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Development areas 2022
Slide 21: Structure of the investment portfolio
Structure of the investment portfolio € million 31/12/2021 30/6/2022 Government bonds 718.5 686.9 Corporate bonds 592.1 475.4 Cash and cash equivalents 74.0 123.2 Infrastructure funds 44.5 53.0 Shares 36.0 24.8 Mutual funds 35.9 22.9 Real estate funds 15.8 17.0 Deposits & CDs 18.6 16.1 Investment pr
Slide 22: Net investment income of and return on the investment portfolio
Net inv. income of and return on the investment portfolio € million 1–6/2021 1–6/2022 Absolute change Net investment income relating to the investment portfolio 13.7 11.2 -2.5 Net investment income of the investment portfolio, excluding FX differences 11.6 9.0 -2.6 Return on the investment portfolio
Slide 23: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 24: Shareholders and share trading
Shareholders and share trading 30/6/2022 Book value per share Share capital (€ million) 71.9 Market capitalisation (€ million) 387.4 €26.63 Trading symbol Number of shares POSR 17,219,662 30 Jun 22 / 31 Dec 21: -18.1% Number of own shares 1,721,966 Number of shareholders 4,288 * Custody account. 24
Slide 25: Dividend policy
Dividend policy • Dividend policy: 10% average increase in dividend per year; distribution of between 35% and 45% of the net profit of the Sava Insurance Group. • Sava Re did not pay any dividends in 2020 because of increased Covid-19-related risks identified and due to special caution in response t
Slide 26: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 27: Capital adequacy
Capital adequacy € million 31/12/2021 Eligible own funds 601.3 Solvency capital requirement (SCR) 304.4 Solvency ratio 198% € million 31/3/2021 (unaudited) Eligible own funds 597.2 Solvency capital requirement (SCR) 304.4 Solvency ratio 196%* * The ratio reflects the value of eligible own funds at 3
Slide 28: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 29: Major development areas in 2022
Major development areas in 2022 29 Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Development areas 2022
Slide 30: Thank you for your attention.
Thank you for your attention.
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
Slide 32: Appendix
Appendix
Slide 33: Group exposure by region
Group exposure by region Compared to year-end 2021, exposures to Slovenia, EU member states and USA decreased, whereas there was a rise especially in exposures to issuers from the rest of the world. The exposure to Slovenia decreased due to government bonds maturing, while the exposures to EU member
Slide 34: Group exposure by industry
Group exposure by industry The exposure to the banking industry increased due to the increase in the item cash and cash equivalents and decreased following dividend payment after the end of the period. Part of the assets from maturing investments of other sectors were partially reinvested in governm
Slide 35: Rating profile
Rating profile Investment-grade assets represented 85.8% of fixed-income investments, down 0.9 p.p. from year-end 2021. The share of A-rated asset classes remained largely the same as at year-end 2021. The share of non-rated assets increased by 0.9 p.p from year-end 2021, mainly due to a decrease in