Sava Re Fact Book 2015

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


Imre HorvathBulgaria, Hungary, Northern Europe, Romania, Caribbean islands


Alexander BarsukovRussia, Ex-Soviet Union, Estonia, Lithuania, Latvia


Borut SabotinSouth America, Turkey, Israel, MENA, RSA, Italy


Simona ČampaBenelux, France, Spain, South Korea, Taiwan, Vietnam, Thailand, Philippines


Jane KoliševskiChina, India, Indonesia, Pakistan, Mongolia


Urška JezeršekAlbania, Cyprus, Greece, Ex-Yugoslavia


Inacio BintchendeAfrica


Vanja Voglar (Facultative Reinsurance, Claims)


Tetiana Spys(Facultative Reinsurance)Ukraine


Andreja Čič (Life Reinsurance)


Ana Kostanjšek Assistant Underwriter

+ 386 1 47 50 261

Alenka Strmec Assistant Underwriter

+ 386 1 47 50 266

mailto:[email protected]











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

[email protected]

Documents

Sava Re Fact Book 2015