Pozavarovalnica Sava (POSR) Q3 2024 earnings summary

Executive summary

• Gross premiums written/business volume increased by 14.7% year-over-year, driven by growth in both motor and life insurance segments and strong performance across all segments.

• Net profit rose to €62.1m for 1-9/2024, up 70% from €36.5m in the same period last year, supported by higher insurance revenue, improved claims experience, and higher investment income.

• Combined ratio improved by 4.6 percentage points to 91.7%, reflecting better underwriting and expense management.

• Return on equity reached 12.9%, up 4.7 percentage points from the prior year.

• Credit ratings were reaffirmed and a €50m subordinated bond was issued in October 2024.

Financial highlights

• Gross premiums written: €814.7m (up 14.7% year-over-year).

• Net profit: €62.1m (up 70% year-over-year).

• Return on equity: 12.9% (up 4.7 pp year-over-year).

• Combined ratio (non-life and reinsurance): 91.7% (improved by 4.6 pp year-over-year).

• Total investment portfolio: €1,596.3m (up 6.2% from year-end 2023), with a 2.5% return.

Outlook and guidance

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

• Management expects to exceed 2024 profit guidance if claims experience and financial markets remain stable in Q4.

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

• Return on equity expected to exceed 10.5%.

• Combined ratio targeted below 95%.