Pursuant to the rules of the Ljubljana Stock Exchange, Ljubljana, and the Market in Financial Instruments Act, Sava Re d.d., Dunajska 56, Ljubljana, makes the following announcement:
- Business volume up by 13.7% year on year to EUR 711.2 million
- Severe summer weather events cause gross claims to reach EUR 107.0 million, resulting in a net cost of EUR 27.1 million
- Pre-tax profit of EUR 45.1 million
The Company estimates that, despite the adverse impact of this summer’s storms and floods, the Group’s result will be close to the published 2023 target of at least EUR 53 million by the end of the year.
The Group continued its successful growth with a 13.7% year-on-year increase in business volume to EUR 711.2 million. The main contributors to this growth were gross written premiums in the non-life segment (18.5% in the EU markets and 22.2% in the non-EU markets) and in the reinsurance segment (6.6%), both driven by price increases and organic business growth. Life insurance sales also increased, resulting in higher life gross written premiums (3.3% in the EU markets and 15.8% in the non-EU markets). In addition, asset management revenues grew by 6.6%.
The net profit of EUR 36.5 million was at a similar level to that of the first nine months of last year, despite this year’s major claim events. This was due to the lower insurance service result last year, which was impacted by claims inflation, and this year’s more favourable developments in the financial markets, which partially offset the reduction in profit caused by the storms and floods. The improved performance of the reinsurance segment compared to last year also supported the profit for the period.
The solvency ratio, estimated at between 178% and 184%, remained strong and within the optimal capitalisation range (170–210%), although slightly lower than at mid-year due to the storms and floods. The Group maintains a conservative and highly liquid investment portfolio. The Group’s liquidity position was not compromised by the claims paid following the summer storms.
Profit estimation for 2023
In the first nine months, the Sava Insurance Group reached 88.9% of the planned business volume for 2023, whereas net profit was 68.9% of the lower limit of the annual net profit target range. In August, the net impact of the summer events was estimated to be between EUR 30 million and EUR 35 million. Three months after these events, their impact amounts to EUR 27.1 million. The impact of claims on non-Group reinsurance business (written in Austria, Croatia and Serbia) is lower than originally estimated.
Moreover, the overall reinsurance result for the first nine months is also ahead of plan due to an increase in reinsurance pricing and a lower increase in claims than in revenue. The estimate is also supported by other business segments not directly exposed to natural catastrophes (e.g., life insurance, motor third-party liability and asset management activities), demonstrating the Group’s resilience and strategic business line diversification.
Assuming there are no major adverse events or other negative external impacts in the fourth quarter, management expects the Group’s full-year net profit will be close to the originally published target for 2023.
This announcement will also be available on the Company’s website, at www.sava-re.si, for at least five years from the date of this announcement.