Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Insurance Group — 1–9/2022 Earnings Presentation
38 slides from Sava Re,d.d's earnings presentation, Nov 18, 2022
Slide 1: Sava Insurance Group 1–9/2022 unaudited results
Sava Insurance Group 1–9/2022 unaudited results 18 November 2022
Slide 2: Contents
Contents • Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 3: Highlights 1–9/2022
Highlights 1–9/2022 Growth in gross premiums written of 5.2% – strongest growth in the motor business, reflecting more policies sold and higher average premiums; growth also in the reinsurance segment, driven by higher rates in global reinsurance markets, and in the foreign life business, mainly bec
Slide 4: Key figures
Key figures Change € million, except % 1–9/2021 1–9/2022 2022 plan 2022/2021 Group Operating revenue 548.8 558.0 > 700 1.7% Gross premiums written 578.1 608.3 5.2% Net expense ratio, including operating revenue* 27.8% 28.5% 31 ̶ 32% +0.7 p.p. Return on the investment portfolio* 1.9% 1.3% 1.4% -0.6 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 Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • 5 Development areas 2022
Slide 6: Growth in consolidated GPW of 5.2%
Growth in consolidated GPW of 5.2% Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • 6 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 Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • 8 Development areas 2022
Slide 9: Decrease in profit before tax of 19.4% – after benefitting from lower claims frequency
Decrease in profit before tax of 19.4% – after benefitting from lower claims frequency in 2020 and 2021 Negative impact on claims: claims inflation, storms, and post-pandemic normalisation of claims frequency in motor insurance. Group Group results • Segment reporting • Financial investments • Susta
Slide 10: Profit dropped but exceeds profit of last pre-pandemic year
Profit dropped but exceeds profit of last pre-pandemic year Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • 10 Development areas 2022
Slide 11: Contents
Contents • Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 12: 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 higher net claims • Weaker result chiefly due to higher expenses for insurance, mainly in the private motor segment, incurred, which increased because of the impact of c
Slide 13: 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 • Last year, more gains on the disposal of equities single premium payments compared to the same written decreased while costs, mainly were realised than this year
Slide 14: Results by operating segment – reinsurance
Results by operating segment – reinsurance • Growth in gross premiums written due to new • Stronger underwriting result owing to higher net • Weaker investment result due to higher expenses for fair business and price rises in international premiums earned, which reflects price rises in value change
Slide 15: Results by operating segment – non-life international
Results by operating segment – non-life international • Gross premium growth across the Group: most • Stronger underwriting result owing to net • Investment result at the year-on-year level notably in the motor business, but also in the premiums earned growing faster than net claims property and ass
Slide 16: Results by operating segment – life international
Results by operating segment – life international • Growth in gross premiums written owing to • Expense ratio at the year-on-year level • Investment result at the year-on-year level increased sales of own network and sales through a new bank channel from mid-2021 Group results • Segment reporting •
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 Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • 18 Development areas 2022
Slide 19: Contents
Contents • Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 20: Investment portfolio and AuM
Investment portfolio and AuM xy = amount of assets xy% = increase/decrease in assets vs. previous bar/date Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • 20 Development areas 2022
Slide 21: Structure of the investment portfolio
Structure of the investment portfolio € million 31/12/2021 30/9/2022 Government bonds 718.5 711.6 Corporate bonds 592.1 439.9 Cash and cash equivalents 74.0 91.7 Infrastructure funds 44.5 54.2 Mutual funds 35.9 22.2 Shares 36.0 22.2 Deposits & CDs 18.6 18.3 Real estate funds 15.8 17.7 Investment pro
Slide 22: Net inv. income of and return on the investment portfolio
Net inv. income of and return on the investment portfolio € million 1–9/2021 1–9/2022 Absolute change Net investment income relating to the investment portfolio 22.3 17.6 -4.7 Net investment income of the investment portfolio, excluding FX differences 19.7 12.4 -7.4 Return on the investment portfoli
Slide 23: Contents
Contents • Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 24: Our sustainable development principles
Our sustainable development principles We are building long-term corporate social responsibility in continuous dialogue with our stakeholders, supporting global sustainability goals, with a particular focus on climate change and on the health and well-being of our customers, employees and the wider
Slide 25: Our sustainability efforts during the period
Our sustainability efforts during the period EU regulations • In August 2022, two EU delegated regulations (2021/1256 and 2021/1257) entered into force. Documents and guidance were issued to meet regulatory requirements, and relevant information was prepared for customers on sustainability factors i
Slide 26: Contents
Contents • Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 27: Shareholders and share trading
Shareholders and share trading 30/9/2022 Book value per share Share capital (€ million) 71.9 Market capitalisation (€ million) 314.6 €25.60 Trading symbol Number of shares POSR 17,219,662 30 Sep 22 / 31 Dec 21: -21.3% Number of own shares 1,721,966 Number of shareholders 4,312 * Custody account. Gro
Slide 28: 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 29: Contents
Contents • Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 30: Capital adequacy
Capital adequacy The Group’s estimated capital adequacy as at 30 September 2022 indicates that the Group’s solvency remains high (between 189% and 199%) and well above the regulatory requirement. The solvency ratio is within the optimal capitalisation range based on criteria set by the Group’s risk
Slide 31: Contents
Contents • Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • Major development areas in 2022
Slide 32: Major development areas in 2022
Major development areas in 2022 Group results • Segment reporting • Financial investments • Sustainability • POSR share and dividend policy • Solvency position • 32 Development areas 2022
Slide 33: Thank you for your attention.
Thank you for your attention.
Slide 34: 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 35: Appendix
Appendix
Slide 36: Group exposure by region
Group exposure by region Compared to year-end 2021, exposure to Slovenia and the USA decreased, whereas there was a rise especially in exposures to EU issuers and to the rest of the world. The exposure to Slovenia decreased due to maturing government bonds, and exposures to the USA decreased due to
Slide 37: Group exposure by industry
Group exposure by industry Part of the assets from maturing and sold investments of other sectors were partially reinvested in government securities, which increased the exposure to the government sector. * Includes direct investments in real-estate and property funds. Corporate bonds classified as
Slide 38: Rating profile
Rating profile Investment-grade assets represented 85.1% of fixed-rate investments, down 1.6 p.p. on year-end 2021. The proceeds of maturing and sold BBB-rated investments were mainly reinvested in AAA and AA-rated investments (to reduce the credit risk of the portfolio). The “unrated” class increas
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