Pozavarovalnica Sava (POSR) Q4 2025 earnings summary

Executive summary

• Business volume reached €1,133.6m, up 9.5% year-over-year, driven by strong growth in non-life (+7.7%) and reinsurance (+23.2%) premiums.

• Net profit rose 29.8% to €114.1m, surpassing both plan and prior estimates, and exceeding €100m for the first time.

• Combined ratio improved to 87.4% (down 3.9 pp), reflecting favourable claims experience and higher revenue.

• Return on equity increased to 15.9%, up 2.3 pp year-over-year and above the planned lower bound.

• All business segments exceeded their targets for business volume and profitability.

Financial highlights

• Insurance result increased by 47.6% to €118.5m, mainly due to favourable claims experience and lower impact from severe weather events.

• Assets under management rose 16.9% to €3,377.6m; investment portfolio up 5.9% to €1,764.6m.

• Return on investment portfolio was 2.1%, down 0.4 pp year-over-year.

• Solvency ratio estimated at 215%-221%, well above regulatory requirements.

• Nat cat claims dropped 51.3% to €25.3m, with the nat cat loss ratio at 3.1% (down 4.1 pp).

Outlook and guidance

• Dividend policy targets a 35–45% payout from net profit; proposed 2026 dividend is €2.75 gross per share.

• Moderate economic expansion expected in the euro area, with GDP growth forecasts of 1.2% in 2026 and 1.4% in 2027.

• ECB monetary policy expected to remain stable, with inflation forecast at 1.9% in 2026.

• Continued focus on risk monitoring due to persistent macroeconomic and geopolitical uncertainties.

• Solvency ratio remains strong at 210–250%, indicating overcapitalisation and potential for capital restructuring.