Pozavarovalnica Sava (POSR) Q2 2024 earnings summary

Executive summary

• Gross premiums written increased by 14.0% year-over-year to €563.8m, with growth in all segments, especially motor and life insurance.

• Net profit rose to €44.5m for 1-6/2024, up 11.1% year-over-year, driven by improved insurance service results and higher interest income.

• Combined ratio improved to 89.7%, reflecting effective cost management and favorable claims experience.

• Return on equity reached 13.8%, up 0.5 percentage points year-over-year.

• Investment results benefited from higher interest rates and positive market performance.

Financial highlights

• Insurance revenue grew 18.2% year-over-year to €388.1m.

• Finance result improved by €1.6m to €10.0m, mainly due to higher interest income.

• Investment portfolio rose 1.6% to €1,527.4m, with a return of 2.5%.

• Assets under management increased 13.5% to €2,638.7m.

• Equity increased by 2.2% to €598.7m, reflecting retained earnings after dividend payout.

Outlook and guidance

• 2024 plan targets gross premiums written above €925m and net profit above €70m.

• 61% of planned business volume and 63.6% of the lower end of full-year net profit target achieved in H1 2024.

• All key performance indicators ahead of pro-rata annual targets.

• Combined ratio expected to remain below 95%.

• No change to full-year profit guidance despite favorable H1, due to ongoing exposure to major losses and market volatility.