Ljubljana, 31 August (STA) - Slovenia's second largest insurance and reinsurance group Sava Re reported on Friday EUR 14.2m in net profit for the first half of the year, a 17.2% drop year-on-year. The group, which lost EUR 4.6m due to the hailstorm that hit the south-east of the country in June, saw gross premiums rise 3.7% to EUR 308.6m.
Premium growth was driven by non-life insurance in Slovenia (7.3% growth), non-life insurance abroad (16.0%) and life insurance abroad (11.7%), the report says.
Gross premiums fell by 7.1% in reinsurance operations, which the company attributes to "interim dynamics, dollar to euro exchange rate developments, and the cancellation of certain contracts that did not meet profitability targets".
In line with the expectations, there was a decline, of 6.3%, in Slovenian gross life insurance premiums, reflecting a substantial number of policy maturities. "Thus in the first half of the year, the group wrote 59.4% of the target premium income for the full year 2018."
While net profit was down 17.2%, the group feels the planned yearly profit of EUR 37m to EUR 39m is attainable, provided no major loss events occur in the second half of the year.
Sava Re says the first six months saw an emphasis on "investing in environmental and sustainability investment projects, specifically in infrastructure funds and projects of local companies exploring energy efficient schemes and renewable energy sources".
The company moreover highlighted that rating agency Standard & Poor's raised the long-term issuer credit and issuer financial strength ratings for Sava Re and Zavarovalnica Sava to A with a stable outlook.