Insurer Sava Re reports 29% higher profit

Ljubljana, 18 May (STA) - Sava Re, Slovenia's second largest insurance group, made a net profit of EUR 9.2m in the first quarter of the year, a rise of 29% compared with the same period a year ago.

According to as yet unaudited figures released by the company on Thursday, gross premiums written increased by 4.2% in the period to EUR 159.9m.

The increase in profit is attributed to a favourable development of Slovenian non-life insurance business as well as improved performance of Slovenian reinsurance and life insurance operations.

Meanwhile, the results of operations abroad were marginally weaker, the company said in the press release published via the Ljubljana Stock Exchange.

Premium growth was generated mainly by non-life insurance business and life insurance in the domestic market, which posted annual growths of 4.1% and 8% to EUR 92m and EUR 22m, respectively.

The group also saw high growth rates in its insurance business abroad, at an annual rate of 10% in non-life insurance and 14% in life insurance.

The company blamed persisting "soft market conditions" in global reinsurance markets, for a 1% drop in reinsurance premiums.

In the first quarter, 32% of the total group premiums planned for 2017 were written. Net revenue from premiums was down 0.5% year-on-year to EUR 110.9m.

Gross claims paid, at 81.3m, were 22.5% higher than in the first quarter of 2016. Net claims incurred were up by 15.9% to EUR 77.1m.

Core company Pozavarovalnica Sava generated a net profit of EUR 4.5m, a rise of 31.3%, as gross written premiums rose by 0.4% to EUR 56m and gross damages fell by 6.9% to EUR 18.9m.

The group's target for 2017 is a consolidated gross written premium of EUR 494m and a net profit of EUR 32.6m.