Sava Re Reports Record Profit
Published on 10 march 2015Preliminary unaudited data released by the group via the website of the Ljubljana Stock Exchange on Monday put gross written premiums for 2014 at EUR 468m, 21% more than in 2013.
The release said the management welcomed the results as a basis for long-term profit growth on the group level after Zavarovalnica Maribor was included for the first time in the consolidated accounts in 2013.
The Slovenian insurance division generated 71% of the group premium income.
The company underscored that the record net profit was achieved despite the February 2014 ice storm, which it said affected the group's bottom-line by EUR 6m.
The parent company, reinsurer Pozavarovalnica Sava, increased net profit by 51.4% to EUR 22.4m, chiefly owing to reinsurance business written in international markets as well as due to net investment income.
The group plans a 1.8% premium growth for 2015 with over 10% growth planned for its insurance companies outside Slovenia and a 4% rise in the reinsurance division.
A 0.2% growth is projected for property insurance in the Slovenian market and a 0.2% fall in life insurance premiums as the market has been contracting.
Long-term targets remain to exceed a premium volume of EUR 500m and top a 11% return on equity, with a priority being completing the integration of Slovenian members of the group.
Sava Re's strategic plan for 2015-2019 also envisages further expansion outside Slovenia, primarily targeting the Western Balkan markets.
The release also said that a dividend payout is planned at about 30% of the consolidated net profit with the management adjusting its proposal each time by taking into account the company's capitalization, new development projects, capital requirements for the support of organic growth and other major factors.
Source: The Slovenia Times
