SAVA RE, d. d., Ljubljana
Sava Re Group Half-Year Results: Premium and Profit Growth
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, 1000 Ljubljana (also the "Company") hereby announces the following:
In its regular session earlier today, the supervisory board of Sava Re, d.d. was presented with the unaudited financial results of the Sava Re Group and Sava Re, d.d. for the first half of 2017.
The Sava Re Group performed well and better than planned in the first half year.
Gross premiums written increased by 6.0 per cent to € 297.8 million, which is 60.2 per cent of the premiums planned for the 2017 year. Premium growth was achieved in all operating segments. The highest growth rate (11.0 per cent) was achieved by foreign-sourced direct non-life and life insurance business. The largest premium growth in absolute terms was posted by the Slovenian non-life insurance segment.
In the first six months of 2017, the Sava Re Group generated a net profit of € 17.1 million, an increase of 19.4 per cent year on year. This improvement was mainly driven by the favourable development of Slovenian non-life insurance business. Compared to the same period last year, there was a moderate deterioration in the results of international business due to an increased number of losses.
The key financial indicators for the first half of 2017 are better than planned for 2017. The rate of return on equity is 11.1 per cent on an annual level and the combined ratio is 94.2 per cent, which is 0.4 percentage points above the plan.
A notable event after 30 June 2017 and until the date of the report is that the credit rating agency Standard & Poor's affirmed its A-level rating on the Company, revising the outlook to positive from stable. The outlook was revised to positive based on the Sava Re Group's successful implementation of its derisking strategy and the stable financial results posted over the recent years.
After the reporting date (in July and August 2017), a number of loss events occurred in Slovenia the total amount of which exceed one planned catastrophic loss. Nevertheless, the Company expects that the full-year profit target will be achieved by the end of the year.
Attached hereto is the document "Unaudited Financial Report of the Sava Re Group and Financial Statements of Sava Re, d.d. for the Six Months to 30 June 2017".
This announcement will also be available on the Company’s website at www.sava-re.si, at least five years from the date of the announcement.