Insurer Sava Re posts 35.3% profit growth in first six months

Ljubljana – Insurer Sava Re generated a net profit of EUR 43.5 million in the first six months of 2021, an increase of 35.3% compared to the same period last year. The group collected gross premiums of EUR 414.5 million, a growth of 10.9%, show unaudited interim results released on Thursday.

This 10.9% year-on-year premium growth was predominantly driven by the Slovenian life business (96.8% growth) as a result of the acquisition of Vita, which contributed EUR 54.7 million in gross premiums written.

Net insurance premium income was EUR 342.2 million, an increase of 16.1%. Operating revenue amounted to EUR 363.7 million, up 14.7% year-on-year.

The higher revenues are mainly due to the life segment – the integration of Vita.

Group net profit amounted to 82.1% of the annual target for 2021. The management board estimates that the Group’s revenue and profit targets will be reached by the end of the year, the latter exceeded.

In the third quarter, net profit will be affected by some major catastrophic loss events: storms and floods in Western Europe (especially Germany and Belgium) and in China, and wildfires and hailstorms in Greece and the Adriatic region.

According to preliminary estimates, the total impact of these loss events will exceed EUR 10 million at group level.

Since some major losses are always factored into the annual plan, Sava estimates that group net profit for the year, based on currently known loss events and other assumptions, will exceed EUR 60 million, up 13% from the original annual target.

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