Ljubljana, 08 March (STA) - Sava Re, Slovenia's second largest insurance group, generated a record profit of EUR 43m in 2018, an increase of 38.3% on the year before as gross written premiums rose by 5.6% to EUR 546.3m.
The core company Sava Re saw its profit increase by 27% to EUR 41.87m, while gross written premiums decreased by a percent to EUR 151.6m.
Releasing the results on the web site of the Ljubljana Stock Exchange, the company said that 2018 saw a relatively low incidence of large claims, which was reflected in the group's improved performance.
"Profitability was also supported by the synergies from the merger of four insurers now under the unified brand of Zavarovalnica Sava and the better performance of the group's non-EU-based members," the release said.
The growth in group premium was generated by expansion in non-life insurance business in Slovenia (up 10.9%) and outside it (12.5%) and a 17.8% growth in life insurance business abroad).
The reinsurance segment saw 7.2% less in gross written premium as a result of strict underwriting discipline and selective underwriting.
As anticipated, there was a drop of 2.9% in gross life insurance premiums written owing to a large number of policy maturities.
The group finalised three takeovers last year: the North Macedonia-based pension company NLB Nov Penziski Fond, which was renamed Sava Penzisko Društvo; the Serbia-based insurer Energoprojekt Garant, which was merged with Sava Re's Serbian non-life insurer at the year end; and the Slovenia-based assistance service provider TBS Team 24.
Sava Re has also signed agreements on the acquisition of three further companies; the transaction involving two Croatian ERGO companies was finalised in February and the one involving KBM Infond slated for closing later this year.