Pozavarovalnica Sava (POSR) Q2 2025 earnings summary

Executive summary

• Business volume grew by 8.1% year-over-year to €609.5 million, led by strong motor, non-life, and reinsurance premium growth.

• Net profit rose to €57.7m from €44.5m in the same period last year, a 29.7% increase, with a strong insurance result and improved combined ratio.

• Improved claims experience and higher revenue drove profit growth, despite a lower finance result.

• S&P Global Ratings upgraded the credit rating to A+ with a stable outlook.

• Solvency ratio remains robust at 210%-217%, well above regulatory requirements.

Financial highlights

• Gross premiums written increased to €609.5m, up 8.1% year-over-year.

• Combined ratio improved to 86.0% (down 3.7 pp year-over-year), reflecting better loss experience.

• Return on equity rose to 16.1% (annualised), up 2.3 percentage points.

• Net investment income was €18.9m, with a rate of return of 2.3%.

• Equity increased to €679.3m as of 30 June 2025.

Outlook and guidance

• Business volume growth exceeded the 2025 plan (>5%), with 57% of planned business volume and 68.7% of lower bound net profit target achieved in H1.

• Dividend policy targets a payout of 35–45% of net profit; €2.25 per share approved for 2024 and paid in June 2025.

• Solvency ratio estimated at 210%-217% as of 30 June 2025, within optimal capitalisation range.

• No major loss events in H1, but exposure to weather-related and market risks persists for H2.