31 May 2023
First-quarter results for 2023: Sava Insurance Group achieves high growth in business volume and generates net profit of more than €20m
Pursuant to the rules of the Ljubljana Stock Exchange d.d., Ljubljana, and the Market in Financial Instruments Act, Sava Re d.d., Dunajska 56, Ljubljana, makes the following announcement:
At its regular session yesterday, the Sava Re supervisory board reviewed the unaudited financial results of the Sava Insurance Group for January to March 2023.
- Business volume up by 9.9% to €260.2m
- Net profit of €20.1m significantly higher year on year
- Estimated solvency ratio between 180% and 186%, well within optimal capitalisation range
The Group’s business volume, measured in terms of premiums written and income from other non-insurance services, amounted to EUR 260.2 million, showing strong growth of almost 10% year on year, despite the continuing difficult macroeconomic situation. This growth was mainly driven by the increase in non-life insurance premiums in the EU market (+14.2%) and the Group’s reinsurance services (+12.1%). The Group adjusted its premium rates in line with inflation in its domestic and international reinsurance markets, but it also increased its volume of business through new customer acquisition and increased insurance sales. However, in the markets outside the EU, premium growth was even stronger in relative terms, mainly due to organic growth, both in non-life (+23.4%) and life (+16.2%). Life insurance premiums in the domestic market did not reach the volume of the first quarter of last year (-9.0%) due to the exceptionally high sales during that period.
The Group’s net profit amounted to EUR 20.1 million and is significantly higher than in the first quarter of last year (+144.3%). This growth was partially driven by insurance revenue. Other factors include the reinsurance protection of major claims and the fact that the Group significantly adjusted its claims provisions for inflation for the first time in the first quarter of 2022. The higher profit was also the result of more favourable financial market conditions and higher levels of required yields this year, which led the Group to generate a better net investment income than in the first quarter of last year (EUR +7.1 million).
The first quarter of 2023 is an important milestone for the Group and the insurance industry as a whole, as the new accounting standards IFRS 17 and IFRS 9 came into force on 1 January 2023. The results for the first quarter released today are presented for the first time in accordance with the new methodologies.
The Group also designed bold projects and set out a roadmap to meet all its strategic goals in customer satisfaction, process modernisation, sustainability, reengineering of key information systems and employee satisfaction. It has thus successfully entered its new five-year strategy period.
Further information on the Group’s performance for the period January to March 2023 is provided in the attached quarterly statement and presentation.
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