Transcript Slide 1

Pozavarovalnica Sava, d. d.
Analyst Meeting
Presentation of Business Results
Sava Reinsurance Company
January–September 2011
November 2011
3
Major events
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
Sava Reinsurance Company and AtaHolding OJSC of Azerbaijan signed a memorandum of co-operation regarding the
establishment of a life insurance company in Azerbaijan.
In July the controlling company recapitalised its subsidiary Sava osiguruvanje, Macedonia, with EUR 2,5m. The
resolution was entered in the court register in September 2011.
In August, the controlling company recapitalised its subsidiary Sava životno osiguranje with EUR 0,4m. The resolution
was entered in the court register in September 2011.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
In October 2011, Standard & Poor's reaffirmed their »A–« Rating for Sava Reinsurance Company.
2
1–9/2001 results versus plan
Sava Reinsurance Company
113.390.047
110.933.925
138.093.827
Index
2011/2010
97,8
1.594.678
7.092.030
4.731.783
444,7
149,9%
101,3%
93,3%
99,1%
92,0
94,1%
102,8
102,9%
1-9 2010
Gross premiums written (EUR)
Net profit/loss for the period
(EUR)
Net combined ratio
Shareholders' equity (EUR)
31.12.2010
30.9.2011
156.138.327
160.552.919
Benign claims
environment
million EUR
1-9 2011
Plan 2011
31.12.2011
156.015.965
Dividends of
Zavarovalnica
Maribor and
Zavarovalnica
Tilia
Planned drop in premium
volume; reducing
exposure to the Slovenian
insurance market
8.0
6.0%
7.0
7.1
6.0
4.5%
4.7
4.0
4.4
3.0
2.0
1.0
5.0%
4.0%
3.1%
5.0
3.0%
2.0%
1.1%
1.6
1.7
1.0%
0.0
0.0%
3Q 2010
Net profit
Plan 2011
Comprehensive income
Realised as
% of plan
80,3%
3Q 2011
ROE
5
Major items of the income statement
(EUR)
Three quarters
2010
Three quarters
2011
Index 11/10
Net earned premiums
92.527.581
92.265.324
99,7
Net claims incurred
65.084.043
57.893.474
89,0
Operating expenses
28.691.252
28.180.704
98,2
Other technical income
2.286.362
1.181.013
51,7
Other technical expenses
1.894.594
1.334.627
70,4
-854.947
6.037.532
906,2
345.038
4.540.448
1.315,9
7.253.756
6.186.996
85,3
0
2.549.076
Expenses for financial assets and liabilities
4.684.447
4.993.462
106,6
Net investment income
2.914.347
3.184.906
109,3
21.256
1.779
8,4
158
62
39,2
21.098
1.717
8,1
2.080.498
9.224.155
443,4
485.817
2.132.125
438,9
1.594.680
7.092.030
444,7
Technical result
Income from investments in affiliates
Investment income
Expenses for investments in affiliates
Other income
Other expenses
Result of other items (12 + 13 + 14)
Profit/loss before tax
Tax on profit
Net profit for the period
Note: Investment income includes deposits with cedants.
Benign claims environment
Lower commission rates
Result of exchange rate
movements
Dividends of ZM and
Zavarovalnica Tilia of EUR 4,5m
Impairment of Sava Tabak of
EUR 2,5m
Impairment losses of EUR 5,4m
6
1–9/2011 results: premiums, claims,
combined ratio
Gross premiums written
72.3
80.0
60.0
55.6
84,2%
of plan
realised
50.0
40.0
39.5
45.0
54.6
55.4
76,8%
of plan
realised
27.4 59,5%
35.0
1-9 2010
1-9 2011
Plan 2011
30.0
34.8
40.0
million EUR
58.8
46.1
50.0
65.8
70.0
million EUR
Gross claims paid
of plan
realised
30.0
25.0
-5,8%
1,8%
-21,1%
6,2%
International
Slovenia
International
108.7%
96.6%
62.8
54.3
64.4
57.4
International portfolio
103.3%
65.7
99.8%
87.7%
54.1
40.0
120.0%
83.8%
100.0%
80.0%
43.4
41.6
30.0
20.0
0.0%
2007
2008
2009
2010
3Qs 2010
3Qs 2011
50.0
30.0
20.0
10.0
28.7
Net combined ratio
94.2%
93.3%
91.8%
52.0
52.6
67.1
64.7%
49.5
56.0
100.0%
80.0%
60.0%
34.4
40.0%
20.5
20.0%
0.0
0.0%
2005
Net premiums written
120.0%
96.5%
83.5%
60.0
40.0
0.0
103.8%
70.0
40.0%
20.0%
2006
80.0
60.0%
10.0
2005
million EUR
million EUR
Domestic portfolio
50.0
1-9 2011
0.0
Slovenia
97.4%
1-9 2010
5.0
0.0
60.0
realised
Plan 2011
10.0
10.0
70.0
22.2
20.0
15.0
20.0
59,6%
23.6 of plan
2006
2007
2008
Net premiums written
2009
2010
Net combined ratio
3Qs 2010
3Qs 2011
8
1–9/2011 results: operating expenses
Index
2011/2010
(EUR)
1-9 2010
1-9 2011
NET OPERATING EXPENSES
28.691.251
28.180.704
98,2
Acquisition costs including change in
deferred acquisition costs
25.551.845
25.069.069
98,1
25.125.441
24.980.097
99,4
426.404
88.973
20,9
4.530.585
4.578.978
101,1
-1.391.179
-1.467.344
105,5
Gross expense ratio
26,2%
26,6%
101,9
Net expense ratio
31,0%
30,5%
98,5
Acquisition costs
Change in deferred acquisition costs
Other operating expenses
Income from reinsurance commission and
reinsurance contract profit participation
8
1–9/2011 results: investment structure
Structure at 30.9.2011
Structure at 31.12.2010
Deposits and money market
instruments
Bonds
17.2%
22.8%
33.1%
Shares
36.6%
Mutual funds
3.0%
37.9%
2.5% 2.8%
(EUR)
5.0%
Strategic shares
31.12.2010
54.980.459
Bonds
108.879.179
121.253.305
Shares
9.350.409
9.044.993
16.172.633
7.999.139
106.236.355
117.030.606
6.863.251
9.471.001
320.505.056
319.779.503
Mutual funds
Strategic shares
Other
Total*
2.9%
30.9.2011
73.003.230
Deposits and CDs
34.0%
2.1%
Other
*The investment structure does not include deposits with cedants of EUR 7.6m.
Change in the STRUCTURE of the
investment portfolio
Reducing volatility of return and derisking the
investment portfolio
Recapitalisation of Zavarovalnica Maribor of
EUR 5.9m; other recapitalisations of EUR 5.2m
and impairments of Sava osiguruvanje,
Macedonia, of EUR 2.5m
9
1–9/2011 results: investment return & income
325.0
1.6%
320.5
320.0
1.4%
319.8
1.3%
316.6
315.0
314.1
1.2%
311.1
1.2%
1.0%
309.8
310.0
1.4%
0.8%
305.0
300.9
0.6%
0.8%
0.7%
0.4%
0.5%
300.0
0.2%
-0.02%
295.0
0.0%
290.0
Impacts on INVESTED ASSETS
and the INVESTMENT
RETURN:
- Settlement of consideration for
Zavarovalnica Illyria of EUR 8.5m
-0.2%
31.3.2010
30.6.2010
30.9.2010
31.12.2010
Invested assets (million EUR)
(EUR)
1-9 2010
31.3.2011
30.6.2011
- Net cash flows from reinsurance
operations of EUR 10.7m
30.9.2011
Investment return
1-9 2011
Index 2011/2010
Investment income
9.710.720
10.637.536
109,5
Investment expenses
7.282.878
7.542.538
103,6
Net investment income*
2.427.842
3.094.999
127,5
*The net investment income does not include interest income from deposits with cedants of EUR 120.000 for 3Q 2010 and EUR 90,000 for 3Q 2011.
- Impairment of goodwill of Sava
osiguruvanje, Macedonia of
EUR 2.5m
- Impairment of other investments
of EUR 5.4m
- Dividend income of EUR 4.7m
10
1–9/2011 results: statement of fin. position
EQUITY AND LIABILITIES
(30 .9.2011) = EUR 422.9m
Structure
31.12.2010
Structure
31.12.2011
Equity
37,3%
38,0%
Technical provisions
41,6%
44,6%
Liabilities from operating
activities
7,6%
6,0%
Financial liabilities
8,1%
8,1%
Other liabilities from operating
activities
5,3%
3,4%
TP = EUR 188,6m
Unearned premiums
Provision for
outstanding claims
Other TP
31.12.2010
30.9.2011
Index
41.861.443
45.776.823
109,4
131.492.898
142.256.220
108,2
587.633
598.780
101,9
EQUITY (30.9.2011)
= EUR 160,6m
31.12.2010
30.9.2011
Index
Share capital
39.069.099
39.069.099
100,0
Share premium
33.003.752
33.003.752
100,0
Profit reserves
83.238.204
82.994.634
99,7
Fair value reserve
Net profit for the period
-2.767.816
3.596.862
-5.445.255
7.335.600
196,7
203,9
(EUR)
1-9 2010
1-9 2011
Available capital
42.276.241
33.834.199
Required kapital
20.300.831
21.140.440
Excess of available over required
capital*
21.975.410
12.702.759
208,2%
*estimate until end of 2011: EUR 19.503.024 (193%)
160,1%
11
Thank you for your attention.