Thursday, 29/05/2014

Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Pozavarovalnica Sava d.d., Ljubljana ("Sava Reinsurance Company") hereby publishes financial results for the three months to 31 March 2014. 

In its meeting yesterday, the supervisory board took note of the unaudited financial results of the Sava Re Group and Sava Reinsurance Company for the first quarter 2014. 

Sava Reinsurance Company started consolidating the financial statements of Zavarovalnica Maribor effective 1 May 2013; therefore, the quarterly income statements (1-3/2014, 1-6/2014, 1-9/2014, and full year 2014) will not be directly comparable with 2013. 

In the first quarter 2014 the Sava Re Group generated a net profit of € 7,5 million, which is 31,4 percent of the planned profit for the full year 2014 and a decrease of 3,2 percent year-on-year. First quarter results were impacted by a major loss, which reduced the Group net profit by € 6 million. Still management believes that the results achieved are solid and that planned full year targets will be achieved as the annualised return on equity is 11,9 percent, which is better than the Group target figure. 

In the first quarter 2014, the Sava Re Group wrote gross consolidated premiums of € 145,9 million, an increase of more than 70 percent year-on-year. The increase is due to the consolidation of Zavarovalnica Maribor (impact of € 79,8 million). If Zavarovalnica Maribor had already been consolidated in the first quarter 2013, the Group would have recorded a 2,3-percent drop in gross premiums written. This is partly due to a continued decline in premiums in the Slovenian insurance market, partly due to the planned decrease in premiums at Zavarovalnica Maribor because of more selective profit-focused underwriting, partly a result of reduced reinsurance premiums from international markets due to the trends of premium rates and partly due to the loss of certain contracts because of the rating review following the losses related to subordinated bank bonds at the end of 2013. The consolidated 1Q2014 gross premiums written represent 32.5 percent of the planned full-year premium volume and are thus on target to meet the plan for the full year. 

Although Slovenia was hit by a major loss event in the first quarter 2014, the net combined ratio remained on a favourable level at 95,9 percent (1Q2013: 92,2 percent). If the impact of ice damage was excluded, this ratio would stand at 90,4 percent. A notable improvement has been with the expense ratio, which fell by 2,4 percentage points year-on-year. 

The Group net investment income of the investment portfolio (including expenses for financial liabilities) for the first quarter was € 8,7 million, which is 61 percent more than in the same period last year. It mainly relates to interest income and gains on the sale of investments. The annualised return on investments was 3,8 percent. 

There were no significant structural or conceptual movements in the Group investment portfolio in the first quarter. 

The solvency ratio of Sava Reinsurance Company at 31 March 2014 stood at 199 percent, by which the Company closer approached its planned target.

Attached hereto is the Unaudited Financial Report of the Sava Re Group and Pozavarovalnica Sava d.d. for the Three Months to 31 March 2014.

This announcement will be available on the Company's website at www.sava-re.si, at least five years from the date of the announcement.

Documents
  • Unaudited Financial Report of the Sava Re Group and Pozavarovalnica Sava d.d. for the Three Months to 31 March 2014 [.pdf, 1.95 MB]
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