Pozavarovalnica Sava (POSR) Q4 2024 earnings summary

Executive summary

• Gross premiums written grew by 13.5%, surpassing €1 billion, driven by motor and life business expansion.

• Net profit rose to €87.8m, up 35.9% year-over-year, exceeding profit targets.

• Insurance service and investment results improved due to higher revenues, better claims experience, and favorable market conditions.

• Credit ratings reaffirmed at 'A' level, with S&P outlook revised to positive.

• Subordinated bond issue of €50m completed in October 2024.

Financial highlights

• Profit before tax reached €109.8m, up 37.9% year-over-year.

• Return on equity (ROE) increased to 13.6%, up 2.8 percentage points from 2023.

• Contractual service margin (CSM) grew by 13.1% to €175.6m.

• Combined ratio improved to 91.3%, a 1.8 percentage point decrease year-over-year.

• Natural catastrophe claims remained stable at €52.0m.

Outlook and guidance

• S&P outlook revised to positive, AM Best stable outlook affirmed.

• Dividend policy targets payout of 35–45% of net profit; proposed 2025 dividend is €2.25 per share.