Slide 1: Sava Insurance Group 1–9/2021 unaudited results
Sava Insurance Group 1–9/2021 unaudited results 19 November 2021
Slide 2: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of strategic goals in key focus areas • 2021 plan
Slide 3: Highlights 1–9/2021
Highlights 1–9/2021 Growth in operating revenue of 11.1% Net profit of €57.2 million, which represents 108.0% of planned net profit for 2021 Net expense ratio of 27.8% (last year 29.0%) Net combined ratio (excluding FX differences) of 88.5% (last year 92.1%) Improved performance of non-life segments
Slide 4: Key figures
Key figures Change € million, except % 1–9/2020 1–9/2021 2021 plan 2021/2020 Group Operating revenue 493.9 548.8 > 685 11.1% Gross premiums written 529.6 578.1 > 685 9.1% Net expense ratio, including operating revenue* 29.0% 27.8% 32 ̶ 33% -1.2 p.p. Return on the investment portfolio* 1.7% 1.9% 1.5%
Slide 5: Breakdown of consolidated revenue
Breakdown of consolidated revenue Growth/decline compared to the previous year Without Vita Without FOS and Vita • Earned premiums • Premiums from annuities • Income from resolving TBS • Other technical income (including commision) • Income from managing Team assistance cases • Other income pension
Slide 6: Growth in consolidated GPW of 9.1%
Growth in consolidated GPW of 9.1% Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of 6 strategic goals in key focus areas • 2021 plan
Slide 7: Breakdown of consolidated GPW
Growth/decline Breakdown of consolidated GPW Without Vita Without FOS and Vita compared to the previous year Consolidated gross premiums written by class of insurance Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of 7 str
Slide 8: Consolidated profit before tax by segment
Consolidated profit before tax by segment Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of 8 strategic goals in key focus areas • 2021 plan
Slide 9: Growth in profit before tax of 23.8%
Growth in profit before tax of 23.8% Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of 9 strategic goals in key focus areas • 2021 plan
Slide 10: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of strategic goals in key focus areas • 2021 plan
Slide 11: Results by operating segment – reinsurance
Results by operating segment – reinsurance • Gross premiums written up 10% (proportional and • The underwriting result, excl. FX, remained at • Decrease in investment result for 1–9/2021, excl. non-proportional business up by 16% and 8%, roughly the same level y-o-y. In Q3 major storm and FX, y-o-y
Slide 12: Results by operating segment – non-life Slovenia
Results by operating segment – non-life Slovenia • Lower volume of FOS business (down €19.9 million) • Improved UW result for the Slovenian part due • Weaker result owing to slightly lower interest • Gross premiums written, excl. FOS, up by €11.7 to lower loss frequency due to the Covid-19 income an
Slide 13: Results by operating segment – non-life international
Results by operating segment – non-life international • Gross premiums written, excl. Croatia, up by 13%, • Improved UW result mainly because of the better • Lower investment result due to lower gains on mainly health insurance in the Kosovo and Serbian result achieved by the Croatian branch of sale
Slide 14: Results by operating segment – life Slovenia
Results by operating segment – life Slovenia • Vita included in Group as from 31 May 2020; gross • Net expense ratio lower due to inclusion of Vita, • Net investment income rose both due to the premiums written in 6–9/2020 of €26.6 million, in which, thanks to its specific sales model, inclusion of
Slide 15: Results by operating segment – life international
Results by operating segment – life international • Large decrease in gross premiums written by the • Lower expense ratio mainly due to increased premium • Investment result lower because of lower net Croatian branch of Zavarovalnica Sava both due to income at Serbian and Kosovo life insurers and pa
Slide 16: Results by operating segment – pensions and asset management
Results by operating segment – pensions and asset management • The portfolio of annuity policies grew in line with • Higher income reflecting increased assets • Increased operating expenses due to growth in the number of policyholders meeting eligibility under management, most notably at Sava busine
Slide 17: Results by operating segment – other
Results by operating segment – other Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of 17 strategic goals in key focus areas • 2021 plan
Slide 18: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of strategic goals in key focus areas • 2021 plan
Slide 19: Investment portfolio and AuM
Investment portfolio and AuM Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of 19 strategic goals in key focus areas • 2021 plan
Slide 20: Structure of the investment portfolio
Structure of the investment portfolio 31/12/2020 30/9/2021 Investment portfolio (€ million) 1,535.3 1,586.9 Government bonds 43.0% 44.1% Corporate bonds 40.3% 38.1% Cash and cash equivalents 4.8% 5.6% Mutual funds 2.5% 2.5% Shares 2.5% 2.5% Infrastructure funds 1.8% 2.3% Deposits & CDs 1.5% 1.2% Rea
Slide 21: Net investment income and return on the investment portfolio
Net inv. income of and return on the investment portfolio € million 1–9/2020 1–9/2021 Absolute change Net investment income relating to the investment portfolio 11.2 22.3 11.0 Net investment income of the investment portfolio, excl. FX diff. 14.4 19.7 5.4 Return on the investment portfolio, excl. FX
Slide 22: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of strategic goals in key focus areas • 2021 plan
Slide 23: Shareholders and share trading
Shareholders and share trading 30/9/2021 Book value per share Share capital (€ million) 71.9 Market capitalisation (€ million) 464.9 €31.81 Trading symbol Number of shares POSR 17,219,662 30 Sep 21 / 31 Dec 20: +7.1% Number of own shares 1,721,966 Number of shareholders 4,237 * Custody account. Grou
Slide 24: 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 25: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of strategic goals in key focus areas • 2021 plan
Slide 26: Capital adequacy
Capital adequacy € million 31/12/2020 Overcapitalisation Additional engagement or return of capital Eligible own funds 567.8 250% Solvency capital requirement 287.4 Exploring capital Solvency ratio 198% Acceptable restructuring options overcapitalisation 220% € million 30/6/2021 (unaudited) Optimal
Slide 27: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of strategic goals in key focus areas • 2021 plan
Slide 28: Digital transformation, technology upgrades & customer at the centre
Digital transformation, technology upgrades & customer at the centre • As part of its 2020–2022 strategy, the Group has embarked on large-scale projects aimed towards digital transformation and customer-centricity. • The Group is also undergoing significant technological upgrades to support the digi
Slide 29: Contents
Contents • Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of strategic goals in key focus areas • 2021 plan
Slide 30: Key group performance metrics
Key group performance metrics 2019 2020 2021 actual actual plan Group Operating revenue €588.5 m €680.8 m > €685 m Estimate: Profit or loss, net of tax €50.2 m €56.4 m > €53 m > €60 m Return on equity 13.8% 13.3% >= 11.5% Net expense ratio* 31.6% 29.5% 32‒33% Investment return* 1.9% 1.6% 1.5% (Re)in
Slide 31: Consolidated GPW / operating revenue by segment
Consolidated GPW / operating revenue by segment Group results • Segment reporting • Financial investments • POSR share and dividend policy • Solvency position • Achievement of 31 strategic goals in key focus areas • 2021 plan
Slide 32: Thank you for your attention.
Thank you for your attention.
Slide 33: 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 34: Appendix
Appendix
Slide 35: Group exposure by region
Group exposure by region Exposure to US and EU issuers rose due to investment in issuer assets of these regions, whereas exposure to Slovenia and other European countries declined owing to maturities. Države EU 35 Appendix
Slide 36: Group exposure by industry
Group exposure by industry The lower exposure to banks is due to maturities of deposits and covered bonds. Banking * Includes direct investments in real estate and property funds. Also included are corporate bonds classified as real estate under GICS. 36 Appendix
Slide 37: Solid rating profile maintained despite Covid-19
Solid rating profile maintained despite Covid-19 Investment grade assets accounted for 83.4% of fixed-rate investments, up 0.5 p.p. compared to the year end. A-rated assets shrank as the result of maturities of government bonds and downgrading related to the Covid-19 situation; BB-rated assets reduc