Sava Insurance Group presentation a September 15, 2020
Contents • Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Business profile Sava Insurance Group GPW and market shares (insurance) 2019 by country Breakdown of 2019 consolidated GPW by segments Slovenia: GPW: € 415.0m ∑ = € 598.5m Total market share: 16.4% Serbia: 1 composite ins. company GPW: € 25.45m 1 reinsurance company Total market share: 2.9% 1 life insurance company 1 non-life & 1 life ins. 1 pension ins. company company 1 fund mng company Kosovo: Croatia: GPW: € 12.7m GPW: € 24.9m Total market share: 9.9% Total market share: 1.3% 1 non-life & 1 life ins. 1 composite branch office company v of Slovenian insurer North Macedonia: Montenegro: GPW: € 14.4m GPW: € 13.8m Total market share: 8.4% 1 non-life ins. company Total market share: 14.5% 1 pension fund 1 non-life ins. company Key facts • The 3rd largest insurance group in the Adria region (total GWP of € 598 million in • Rating: S&P A, stable outlook (Aug 2020), AM Best A, 2019). • stable outlook (Nov 2019) Presence in 6 Adria countries with strong position in underpenetrated markets • Listed on the prime market of the Ljubljana Stock alike Montenegro, North Macedonia and Kosovo. • Exchange (POSR symbol) The largest non-captive reinsurer in the region with business spanning worldwide. • • Solvency position of Sava Insurance Group at 31 Dec 2019: After the takeover of Slovenian fund management company in 2019 Sava SII: 220% Insurance Group has over € 2.5 billion assets under management. 3 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Sava Insurance Group Composition of the Sava Insurance Group as at August 31, 2020 v 4 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Equity story full outline Strong #3 market position in the region as 1 demonstrated by the market shares Experienced management with clear vision and Unique positioning to capture expected growth of 7 2 measurable business objectives in-place Adria region insurance market • foothold in the key markets • track-record of successful M&A and joint venture execution • strengthened brand resulting from merger of EU- based insurers into Zavarovalnica Sava. 6 Well positioned to capture growth on the v reinsurance markets High profitability and further potential gains Commitment to shareholder return 3 5 • • dividend policy: 10% yoy growth (from 35% Realizing economics of scale in insurance business • to 40% of consolidated net profit) Declining combined ratio in reinsurance segment Solid solvency ratios and stable ratings outlook 4 • solvency ratio SII: 220% (31.12.2019) • rating: S&P A (Aug 2020), AM Best A (Nov 2019) 5 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Sava Insurance Group growth through acquisitions v 2019 2020 1998 2018 2006 - 2009 2013 2015 2016 • Entry into North • Acquisition of • Acquisition of Entry into insurance Acquisition of Entry into Entry into Merger of EU- Macedonian pension two Croatian Slovenian Slovenian direct markets of: Zavarovalnica Slovenian based companies • market insurance N. Macedonia (NL) Maribor in Slovenia pension insurers (NL + health-care (Slovenian • • Acquisition of market through Montenegro (NL) (55 million capital market L) provider Zavarovalnica Tilia • • Entry into acquisition of Kosovo (NL + L) increase) Slovenian based Diagnostic and Zavarovalnica • Serbia (NL + L) international asset Centre Bled Zavarovalnica Maribor and • • Acquisition of assistance provider management Tilia Croatia (NL + L) Croatian Life and TBS Team 24 market Slovenian life Non-life) • Acquisition of Serbian through insurance insurance company acquisition of company NLB (merged into existing KBM Infond Vita Serbian insurer at the end of 2018) 6 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Sava Insurance Group history - Consolidated net result & ROE v A.M. Best rating: A- S&P rating: A S&P rating: A- (stable) (July 2018) (stable) (stable) A.M. Best rating: A S&P rating: BBB+ (stable) (Nov 2018) (stable) 7 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
The management board Peter Skvarča Marko Jazbec Jošt Dolničar Polona Pirš Zupančič Member Chairman Member Member v • • • • Polona Pirš Zupančič has served on the Peter Skvarča became a member of the Marko Jazbec took up the leadership of Jošt Dolničar has been with Sava Re since management board of Sava Re since January Sava Re management boards, with Sava Re in May 2017. He has years of 2006, first as a senior executive 2018. In her role she is responsible for responsibility for reinsurance, in June 2020. experience in senior and top management responsible for overseeing the Group‘s finance, controlling, accounting, risk He joined the Group in 2007 as deputy positions, notably at the Bank of Slovenia; subsidiaries, and since December 2008 as a management, investor relations and chief operating officer of the subsidiary SKB banka, d.d.; Droga Kolinska, d.d.; member of the management board actuarial affairs.. She began her career at Sava Osiguruvanje in Macedonia, where he Intereuropa, d.d.; NLB, d.d. and Hoteli responsible for the Group‘s strategic Sava Re in 1999. Since 2009 she has headed took over as chief executive in 2011 and led Bernardin, d.d. Until mid-July 2016, he investments in subsidiaries, and for the corporate finance and controlling the company until 2019. headed up Slovenian Sovereign Holding, processes and IT. department as executive director. • d.d. • Peter started his career at the Slovenian He headed the Sava Re management board • • In addition to her long-term experience in Ministry of Economic Relations and During his career, Marko has gained from August 2016 to May 2017. Before reinsurance underwriting, Polona brings Development and was later economic valuable experience in the corporate joining Sava Re, Jošt worked for with her a proven track record in managing counsellor to the Slovenian ambassador to governance of banks and companies, and Zavarovalnica Triglav, most recently as the and supporting complex projects of strategic Macedonia. significant expertise in asset management, executive manager of the non-life importance to the Company and the Group. • risk management, treasury finance, business. In addition to Slovenian, he is fluent in • corporate finance and corporate banking. • Polona holds a master‘s degree in English, French, Serbian and Macedonian. Jošt graduated in lay from the University of • economics from the University of Ljubljana. Peter holds a degree in political science Marko holds a degree in economics from Ljubljana (University of Ljubljana) and a master‘s the University of Ljubljana. degree in European integration (University of Limerick). 8 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Growth in book value of share Book value of share (2019 year end) €24.83 2019/18: + 13.1% v 9 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Ownership structure 31/12/2019 Share capital (€ million) 71.9 Market capitalisation (€ million) 310.0 Trading symbol POSR No. of shares 17,219,662 No. of own shares 1,721,966 No. of shareholders 4,110 v Investor type Local investor Foreign investor Insurance undertakings and pension companies 18.2% 0.0% Other financial institutions* 17.9% 0.3% Government 13.9% 0.0% Individuals 9.7% 0.1% Investment companies and mutual funds 3.8% 2.8% * Fiduciary account. Banks 0.1% 29.6% ** Sava Re was informed on 2 June 2016 that Adris Grupa, together with its Other non-financial corporations 2.4% 1.1% subsidiaries, holds 19.04% of shares of Sava Re’s share capital (21.15% of all shares with voting rights) in fiduciary accounts. Total 66.0% 34.0% * Within other financial institutions SDH holds 17,7% of all shares with voting rights. 10 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
Dividend policy Sava Re has set itself the goal of increasing its dividend by an average of 10% per year over the period 2020 − 2022, thus distributing from 35% to 45% of the net profit of the Sava Insurance Group each year. On 31 March 2020, Sava Re received a letter from the Slovenian Insurance Supervision Agency calling on insurance, reinsurance and pension companies to temporarily suspend dividend payments and refrain from making any irrevocable commitments to pay dividends. v 11 Overview • Profile of business pillars • 2019 results • 2020 plan • Strategy 2020-2022
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