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Roadshow Stockholm, May 2011

SAVA RE GROUP AND SAVA REINSURANCE COMPANY RESULTS 2010. Roadshow Stockholm, May 2011 . WHO WE ARE AND OUR PAST DEVELOPMENT. Roadshow Stockholm, May 2011 . DEVELOPMENT & GROWTH IN TIME. DEVELOPMENT THROUGHOUT TIME. 1991. 1973. 2003. Beginnings during Yugoslav socialist period.

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Roadshow Stockholm, May 2011

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  1. SAVA RE GROUP AND SAVA REINSURANCE COMPANY RESULTS 2010 Roadshow Stockholm, May 2011

  2. WHO WE ARE AND OUR PAST DEVELOPMENT Roadshow Stockholm, May 2011

  3. DEVELOPMENT & GROWTH IN TIME DEVELOPMENT THROUGHOUT TIME 1991 1973 2003 Beginnings during Yugoslav socialist period Consolidation of Sava Re’s position in Slovenia and crystallisation of ownership structure KEY STORY BEHIND DEVELOPING REINSURANCE BUSINESS INTERNATIONAL INWARDSPREMIUM FROM NIL IN 1973 TO NIL IN TIMES OF YUGOSLAV HYPERINFLATION TO 50,0% IN 2010 OF NON-CONSOLIDATED REINSURANCE PREMIUM INCOME 1991 – 2% of reinsurance premiums coming from international markets;decision to expand in international reinsurance markets 1998 – Acquisition ofZavarovalnica Tilia;entry into Slovenian directinsurance market 1999 – Startsto increase minority stake in Zavarovalnica Maribor to 45,79% as of today 2003 – Unallocated portion of share capital transferred to SOD, whobecomes 99,9% owner 1973 – Starts as reinsurance department of Sava Insurance 1977 – Spin-off from Sava Insuranceand incorporation under the name Reinsurance Community Sava 1990 – Reorganisesas a joint-stock company under the new Slovenian Companies Act 1991 – Slovenia declares independence from Yugoslavia;transition from socialist system to market economy

  4. DEVELOPMENT & GROWTH IN TIME DEVELOPMENT THROUGHOUT TIME 2008 2008 2004 2004 2008 KEY STORY BEHIND DEVELOPING INSURANCE BUSINESS STARTED AS A REINSURANCE COMPANY - NOW AN IMPORTANT REGIONAL INSURANCE GROUP 2010 PREMIUM(1) STRUCTURE: • 47% REINSURANCE PREMIUM • 48% NON LIFE INSURANCE PREMIUM • 5% LIFE INSURANCE PREMIUM Expansion to lifeinsurancebusinessandreturn to Croatia Acquisition-driven expansion to insurance markets of former Yugoslavia 2004 –Acquisition of a minority stake in OsiguranjeHelios in Croatia, 2006– sale of entire stake in Osiguranje Helios when there was an indirect change in control in the majority shareholder 2006 – Acquisition of majority stakes in Dukagjini (now renamed Illyria) and Sava osiguranje;entry into Kosovanand Serbian non-life insurance markets 2007 – Acquisition of majority stakes in Sava Tabakand Sava Montenegro,entry into Macedonian and Montenegrin non-life insurance markets 2008 –100% owned greenfield Sava životnoosiguranje a life insurance operation in Serbia 2008 – Now 100% owned greenfield Dukagjini Life (now renamed Illyria Life) in Kosovo 2009 – Acquisition of majority stakes in VelebitosiguranjeandVelebitživotno osiguranje;return to the Croatian non-life and life insurance market __________________________________________________________________________________________________________________________________________________ Note: (1) Consolidated premium income,

  5. Overview • 10 companies in reinsurance, non-life and life insurance business • Reinsurance relations with numerous players worldwide • Insurance operations in 6 markets of former Yugoslavia • Total consolidated GPW of EUR 259,1m(1) Reinsurance (GPW: EUR 120,8m) • Largest locally-based non-captive reinsurer in CEE • No.1 reinsurer in Slovenia(2) • 37 years of presence in Slovenia and internationally • 181 reinsurance clients • Rated by S&P since 2005; current rating (November 2010) A- with a stable outlook Direct insurance (GPW: EUR 138,3m) • Mostly non-life exposure, life insurance operated through Green-Fields • Operating in direct insurance market since 1998 through Tilia • Substantial long-term equity investment in 3rd largest Slovenian insurer, Maribor with GPW of EUR 259,6m(3) • Exposure to market potential in countries of former Yugoslavia through acquisition of 4 subsidiaries in 2006-2007, establishment of2 life companies in 2008 and acquisition of 2 subsidiaries in 2009 INTRODUCTION TO THE SAVA RE GROUP • Maribor • Ljubljana • Novo mesto • Kosovo __________________________________________________________________________________________________________________________________________________ Notes: (1) As per December 31, 2010 (2)Market share measured on reinsurance GWP in Slovenia (3) As per December 31, 2010

  6. WHO WE ARE TODAY – 3 KEY SEGMENTS REINSURANCE INSURANCE SLOVENIA SLOVENIA INTERNATIONAL INSURANCE FORMER YU

  7. OUR MARKETS - Established Company COVERING MOST OF THE FORMER YUGOSLAV MARKETS SLOVENIA – THE GROUP’S MOST IMPORTANT MARKET LIFE OPERATIONS IN EARLY STAGES R – reinsurance NL – non-life L – life T – total - Greenfields

  8. P/E2 = 13,56 P/GPW3 = 0,29 P/B1 = 0,48 OWNERSHIP STRUCTURE OF SAVA RE 5.481 shareholders 75% freefloat 3% foreigninvestors POSR (listed on the LJSE since 14 June 2008) • P/B = pricepershare on 31 December 2010 / bookvalueofshares on 31 December.2010 • P/E = pricepershare on 31 December 2010 / earningspershare in 2010 • P/GWP = pricepershare on 31 December 2010 / GPW 2010 pershare • ROE = net profit/loss / averageequity

  9. WHERE WE ARE GOING Roadshow Stockholm, May 2011

  10. CAGR 2008 – 2010 GPW million EUR (consolidated) PERMANENT GROWTH To balance international and domestic portfolio Reinsurance 14,8% Greenfield in Croatia, high growth rates on all markets, developing health in Kosovo Non-life insurance 12,5% Greenfields in Serbia, Kosovo and Croatia Life insurance 7,4%

  11. OUR INVESTMENT STORY REINSURANCE GROWTH ON FOREIGN MARKETS Asianmarketswillbethesourceofourfuturegrowth

  12. OUR INVESTMENT STORY THE WESTERN BALKANS HAVE GROWTH POTENTIAL Sava Re has cleaned the balance sheets & portfolios of its subsidiaries to prepare for future opportunities on these markets

  13. OUR INVESTMENT STORY INSURANCE REGIONAL FOCUS ON THE SLOVENIAN DIRECT MARKET SLOVENIA SAVA RE AFFILIATE: Insurance Company Maribor; 3rd biggest on Slovenian market; GPW EUR 259,6m Sava Re share 45,7% Increase market share & focus on portfolio profitability We will try to stabilise our presence on the Slovenian market

  14. 2010 WAS A GOOD YEAR Roadshow Stockholm, May 2011

  15. 2010 – YEAR OF POSITIVE TURNAROUND • SAVA RE GROUP • Increase in gross premiums in all business segments • Adjusting reserving levels to Group policy • Strengthening of agency networks • Restructuring of investment portfolio led to positive • investment return • Implementation of systematic risk management approach and tools • SAVA REINSURANCE COMPANY • Achieved strategic goal of balance between international • and domestic portfolio • Largest growth of foreign reinsurance premium achieved on Asian market • Lightloss year 2010 withimproved combined ratio • Long-term credit and financial strength rating of A- with • a stable outlook reaffirmed • Allocation of capital to subsidiaries to support further development & growth • Positive investment return and restructuring of • investment portfolio towards reducing market risks

  16. 2010 – YEAR OF POSITIVE TURNAROUND Gross Premium Written = GPW (1) Calendar-year basis

  17. 2010 – YEAR OF POSITIVE TURNAROUND • Netincurredlossratio = netclaimsincurred / netpremiumsearned • Netexpenseratio = (netaquisitioncost + administrative costs) / netpremiumsearned • Netcombinedratio= (netclaimsincurred + netaquisitioncosts + administrative costs) / netpremiumsearned

  18. SAVA RE GROUP

  19. 2010 – YEAR OF POSITIVE TURNAROUND • Netincurredlossratio = netclaimsincurred / netpremiumsearned • Netexpenseratio = (netaquisitioncost + administrative costs) / netpremiumsearned • Netcombinedratio= (netclaimsincurred + netaquisitioncosts + administrative costs) / netpremiumsearned

  20. INVESTMENT STRUCTURE - SAVA RE GROUP InvestmentStructure Investedassets

  21. INVESTMENT RETURN OF SAVA RE GROUP

  22. PLANS 2011 Roadshow Stockholm, May 2011

  23. KEY ACTIONS IN 2011 Reinsurance Diversifying and growing thereinsurance portfolio Profitability of reinsurance portfolio Capitaladequacy (Solvency II) Cost control Upgrading risk control systems Insurance Profitability of insurance portfolio Improving theunderwriting process Developing IT systems Strengthening salesnetworks

  24. STRATEGIC ORIENTATION Reinsurance Annual average growth on international markets > 8% Decreasing premium from Slovenia to mitigate double exposure Combined ratio of 95% Insurance Slovenia Tilia to achieve 5%-market share Accelerated growth in life business Seeking better governance solutions for ZM for both strategic shareholders Insurance W Balkan Growth of non-life insurance business (organic growth) Takingadvantage of high growth potential in life business Focus on small and medium size risks (consistent system of concluding treaties)

  25. PLAN 2011 Premium growth of 2,8% (non-life premium growth of 4,8%, life premium growth of over 40%, decrease in reinsurance premium of 3,6%) 3,4% decrease in premium; Double investment return and expected improvement of loss ratios (2010 better than long-term average) MID TERM ROE TARGET 8-10% • Net incurred loss ratio = net claims incurred / net premiums earned • Net expense ratio = (net aquisition cost + administrative costs) / net premiums earned • Net acquisition cost = acquisition costs + change in diferred acquisition cost

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