sava re fact book 2015
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2015 FACTBOOK1- 6
INTRODUCTION
Slovenia-based Sava Reinsurance Company d.d. (Pozavarovalnica Sava, d.d.) has been
carrying on reinsurance business in Central and Eastern Europe for over forty years.
A medium-sized company, we offer reinsurance services to domestic and foreign
insurers and reinsurers worldwide.In 1998 we entered the primary insurance
market and expanded into a strong insurance group.
WE HAVE A VISION
Our vision is to be seen as providing the highest-quality services in the industry in our
target markets. By offering a complete range of products, we will allow our clients to
select the optimal level of financial security based on their specific needs.
ZvonkoIvanušičChairman
MANAGEMENTBOARD
JoštDolničarMemberInsurance Operations
SrečkoČebronMemberReinsurance Operations
MatejaTrevenMemberFinance
AM Best A– (Stable) / October 2015 Standard & Poors’ A– (Stable) / July 2015
RATING
Macroeconomic indicators 2012 2013 2014
GROSS DOMESTIC PRODUCT
GDP, real growth rate -2.6% -1.0% 2.6%
GDP, per capita (€) 17,506 17,550 18,065
UNEMPLOYMENT
Unemployment rate (ILO definition, average) 12.0% 13.1% 13.1%
INFLATION
Consumer prices, annual average growth rate 2.6% 1.8% 0.2%
POPULATION
Population (million) 2.0 2.1 2.1
_source: UMAR, Slovenian Economic Mirror, June 2015
Slovenian insurance market 2012 2013 2014
Gross premiums written (EUR ‘000) 2,036,425 1,977,183 1,937,556
GPW – non-life (EUR ‘000) 1,457,077 1,424,543 1,402,195
GPW – life (EUR ‘000) 579,348 552,640 535,361
GPW – reinsurance (EUR ‘000) 269,181 239,147 236,522
Loss ratio 67.6% 68.8% 68.4%
Loss ratio (non-life) 65.5% 68.0% 67.3%
Loss ratio (life) 72.6% 70.8% 71.4%
Insurance penetration 5.7% 5.5% 5.2%
GPW, per capita (EUR) 1,018 960 923
_source: Slovenian Insurance Association, March 2015
SOVEREIGN CREDIT RATING Standard & Poors’ A– (Positive) / June 2015
Moody’s Baa3 (Stable) / January 2015
Fitch BBB+ / March 2015
INDICATORS FORSLOVENIA
Member of the EU since 2004
Euro areacurrencysince 2007
SAVA OSIGURUVANJE
OVERVIEW OF GROUP ACTIVITIES · 11 companies in reinsurance, non-life and life insurance business
· Insurance operations in six markets of former Yugoslavia: presence in the Slovenian market since 1998 through Zavarovalnica Tilia; presence in other markets of former Yugoslavia through acquisition of six insurers in 2006–2009 and establishment of two life insurers in 2008
· Total consolidated GPW of € 468.2m (2014)
· Reinsurance GPW: € 77.5m (2014, consolidated); insurance GPW: € 390.7m (2014, consolidated)
· Total consolidated shareholders’ equity of € 271.5m (31 December 2014)
HISTORY 1973-1977
Reinsurance department of Insurance Company Sava
1977-1990Reinsurance Community Sava
1990Reinsurance Company Sava
1998-2009 Enlargement of the Sava Re Group
2008 IPO & listing on Ljubljana Stock Exchange
2013 Sava Re Group becomes second largest insurance group in the region by gaining 100% of Zavarovalnica Maribor
SAVA REGROUP GPW
€ 468.2m
SAVAREINSURANCE COMPANY
Strong capitalisation for the risk base
Solvency margin of 226.8% (31 December 2014)
40 years of presence in Slovenia and internationally
More than300 clientsin 90 countries
KEY GROUP PERFORMANCE INDICATORS
(€ thousand) 2011 2012 2013 2014 1–6/2015
Gross premiums written 258,415 270,763 386,704 468,179 276,704
Gross claims paid 128,377 136,277 221,223 255,340 131,458
Net investment income 6,765 13,190 5,146 27,537 15,808
Profit/loss for the period 4,066 11,788 15,622 30,538 17,105
Total assets 582,037 640,592 1,378,300 1,454,375 1,530,293
Financial investments 380,345 410,617 939,555 982,844 1,010,311
Shareholders’ equity 148,080 171,353 240,099 271,529 271,504
Gross technical provisions 344,548 387,189 1,017,011 1,065,667 1,129,953
Loss ratio (net claims incurred including change in other technical provisions to net earned premiums)
58.1% 61.6% 58.9% 59.5% 62.4%
Expense ratio (operating expenses including commission income to net earned premiums)
36.2% 34.6% 33.6% 32.8% 31.3%
Combined ratio 98.3% 99.2% 96.8% 95.5% 97.0%
Annualised return on equity (ROE) 2.7% 7.4% 7.6% 11.9% 12.2%
* The net investment income does not include income and expenses of assets
pertaining to policyholders who bear the investment risk.
* Combined ratio is calculated for reinsurance and non-life operating segment.
Key impacts on 2014 Group results
Good performance of Slovenian subsidiaries
Strong growth of GPW as a result of ZM acquisition
Improved performance of subsidiaries
Combined ratios on target as a result of diversification and selective underwriting
Conservative investment policy
Financial goal: low volatility of investment return
No major CAT events in international markets
Negative impact of € 6m as a result of ice damage claims
SPLIT OF GPW BY LINE (UWY); EST. 201462%21%
7%
6%4%0%
PropertyMotor hull/MTPL
Personal lines
Marine/AviationCasualtyCredit
KEY PERFORMANCE INDICATORS
(€ thousand) 2011 2012 2013 2014 1–6/2015
Gross premiums written 140,350 152,828 134,131 131,323 90,272
Gross claims paid 70,685 78,400 80,525 70,182 40,205
Net investment income 1,429 7,559 7,983 13,673 19,018
Profit/loss for the period 8,637 9,605 14,764 22,358 16,554
Total assets 417,051 463,036 530,637 547,413 589,114
Financial investments 323,330 339,488 426,686 431,282 451,182
Shareholders’ equity 158,454 174,790 246,189 258,136 264,173
Gross technical provisions 183,891 216,494 208,623 216,658 240,006
Loss ratio (net claims incurred including change in other technical provisions to net earned premiums)
61.5% 66.7% 62.2% 56.9% 69.8%
Expense ratio (operating expenses including commission income to net earned premiums)
30.2% 30.4% 31.2% 32.4% 32.0%
Combined ratio 92.2% 97.3% 94.4% 89.9% 100.6%
Annualised return on equity (ROE) 5.5% 5.8% 7.0% 8.9% 8.0%
SPLIT OF INTERNATIONAL GPW BY AREA, TYPE AND LINE (UWY); EST. 2014
Asia
Europe
Russia and CISMiddle EastAfricaOther
48%
34%
9%3%2%4%
69%
29%
2%
Proportional
Non-proportional
Facultative
77%9%5%3%2%4%
PropertyMarinePersonal linesCasualtyMTPLMotor Hull
(Data as at 8 April 2015)
INVESTMENT PORTFOLIO( € million)
31 December 2014
Deposits and CDs 15.7
Government bonds 95.5
Corporate bonds 105.5
Regular corporate bonds 63.3
Covered bonds 33.9
Government guaranteed bonds 8.3
Shares and mutual funds 14.9
Deposits with cedants 5.6
Loans granted 4.3
TOTAL FINANCIAL INVESTMENTS 241.5
Strategic investments 189.6
Investment property 0.1
Cash and cash equivalents 0.5
TOTAL INVESTMENT PORTFOLIO 431.8
BREAKDOWN OF FINANCIAL INVESTMENTS BY TYPE OF ASSET
Government bonds 40%Shares and mutual funds 6%
Other 2%Depostis with cedants 2%
Regular corporate bonds
Corporate bonds € 105.5m
26%
44%
Covered bonds14%Governmentguaranteed bonds
4%
Deposits and CDs 6%
€ 241.5m
BREAKDOWN OF FINANCIAL INVESTMENTS BY REGION(STRATEGIC INVESTMENTS EXCLUDED)
48%6%8%1%4%
33%
EU member states Other European countries Russia and AsiaAfrica and Middle East America and Australia
Slovenia
€ 241.5m
FIXED INCOME BY RATING31%13%
17%
22%
10%7%
AAA/AaaAA/Aa
A/A
BBB/Baa
Less then BBB/Baa Not rated
€ 222.4m
· Leading and following all lines of treaty and facultative business to subsidiaries and clients in Slovenia, former Yugoslavia and Ex-Soviet Union.
· Following Property, Marine and Liability treaty business in Europe and Asia.
· Business that will not be written: motor proportional, MTPL, retro, business with multi-country exposure and aviation.
CAPACITY PER LINE – TREATY EUR
Property 4,000,000 any one contract
Marine 2,000,000 any one contract
Energy 4,000,000 any one contract
Motor / Casualty 1,000,000 any one contract
CAT 25,000,000 250-year PML per country
Terrorism 5,000,000 any one contract
Life 300,000 any one contract
TARGETS AND CAPACITY OF SAVA REINSURANCE COMPANY
UNDERWRITING TEAMAleš Mirnik (Executive Director)
+ 386 1 47 50 [email protected]
Peter Mesesnel (Retrocession of Sava Re Group)Austria, Czech Rep., Germany, Poland, Slovakia, Switzerland, Ex-Yugoslavia
+ 386 1 47 50 [email protected]
Imre HorvathBulgaria, Hungary, Northern Europe, Romania, Caribbean islands
+ 386 1 47 50 [email protected]
Alexander BarsukovRussia, Ex-Soviet Union, Estonia, Lithuania, Latvia
+ 386 1 47 50 [email protected]
Borut SabotinSouth America, Turkey, Israel, MENA, RSA, Italy
+ 386 1 47 50 [email protected]
Simona ČampaBenelux, France, Spain, South Korea, Taiwan, Vietnam, Thailand, Philippines
+ 386 1 47 50 [email protected]
Jane KoliševskiChina, India, Indonesia, Pakistan, Mongolia
+ 386 1 47 50 [email protected]
Urška JezeršekAlbania, Cyprus, Greece, Ex-Yugoslavia
+ 386 1 47 50 [email protected]
Inacio BintchendeAfrica
+ 386 1 47 50 [email protected]
Vanja Voglar (Facultative Reinsurance, Claims)
+ 386 1 47 50 [email protected]
Tetiana Spys(Facultative Reinsurance)Ukraine
+ 386 1 47 50 [email protected]
Andreja Čič (Life Reinsurance)
+ 386 1 47 50 [email protected]
Ana Kostanjšek Assistant Underwriter
+ 386 1 47 50 261
Alenka Strmec Assistant Underwriter
+ 386 1 47 50 266
HEAD & REGISTERED
OFFICESava Reinsurance CompanyDunajska cesta 56, P.O.B. 318SI-1001 Ljubljana, Slovenia
T + 386 1 47 50 200F + 386 1 47 50 264