Research Detail
| 2024/09/23 / Erste Group Research |
Sava Insurance Group Sava Re, a reinsurance company, is the parent company of Sava Insurance Group. It is headquartered in Ljubljana, Slovenia. Its shares have been listed on the Ljubljana Stock Exchange since 2008. The group is present in six countries of the Adriatic region: Slovenia, Croatia, Serbia, Montenegro, Kosovo and North Macedonia. It offers non-life, life, pension, reinsurance, asset management services and secondary services (e.g. assistance, healthcare) via specialized subsidiaries. The group has approx. 3.000 employees (53% of which work in Slovenia and the Croatian branch). Excluding reinsurance, Slovenia accounts for 83% of the group’s gross premiums written (non-life: 80%; life: 93%) on an unconsolidated basis. Its two Slovenian insurance companies (Zavarovalnica Sava, Vita) have a combined market share of 28.2% (life & non-life insurance) in Slovenia, ranking second only to local peer Triglav (market share: 37.6%; as of 03/31/2024). The Republic of Slovenia (AA-/A3/A) directly and indirectly (via the Slovenian Sovereign Holding) holds 31.6% of the company’s shares and 35.1% of the voting rights (as of 06/30/2024). It is Sava Re’s largest shareholder. Severe storms and floods in the region resulted in claims totaling EUR 88mn in 2023. Thanks to its adequate reinsurance protection, the net impact on the group’s result was significantly lower (EUR 27.4mn). Sava even met all of its financial targets for 2023 (e.g. net profit: EUR 64.7mn; +37.8% y/y). Business volume increased by 14.4% y/y, underpinned by growth in all markets and segments. All of the group’s key financial metrics improved further in 1H24. As of 06/30/2024, the group estimates its solvency ratio in the 197-203% range (12/31/2023: 191%). That is very comfortable, clearly within the optimal capitalization range defined by management (170-210%), and quite similar to Triglav’s Solvency II ratio (~200%). Parent company Sava Re was upgraded by S&P from “A-“ to “A” on 07/30/2018 and has maintained its rating since then. On 06/03/2024, S&P reaffirmed both the “A” long-term issuer credit and financial strength ratings on Sava Re and the “A” financial strength rating on Zavarovalnica Sava, the group’s main Slovenian subsidiary. Rating outlooks are stable. |
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General information
| Author | Erste Group Research |
| Date | 2024/09/23 |
| Language |  |
| Product name | Credit News |
| Topic in focus | Credits/ Corporate bonds |
| Economy in focus | Austria |
| Currency in focus | Euro |
| Sector in focus | - |
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