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Pozavarovalnica Sava Doubles Profit in Nine Months

Ljubljana, 29 November (STA) - Reinsurance group Pozavarovalnica Sava generated EUR 23.3m in net profit in the first nine months of 2013, nearly double over the same period last year. Collected premiums were up 35.2% to over EUR 291m. The growth was driven by the acquisition of insurer Zavarovalnica Maribor.

The Sava Re core company posted EUR 20.4m in net profit. It nearly tripled its profit over the same period in 2012.

The amount of premiums collected was down 10% to EUR 111m, which was caused by intentional decrease in quota reinsurance, the cleaning of international portfolios and a credit rating downgrade by Standard and Poor's, the company said.

The group acquired majority stake in Zavarovalnica Maribor, Slovenia's third biggest insurance company, last year and completed the takeover in August.

The insurance company was included in the group's results as of May, the group said in a press release posted on the Ljubljana Stock Exchange web page on Friday.

The management said in the release that the results were better than expected, considering the EUR 4.8m downgrade of its subordinated bonds of Factor bank and Probanka.

The management moreover said that the group's results could deteriorate considerably in the final quarter of the year due to the expected decrease in subordinated debt of Slovenian banks.

The amount of paid compensations went up 56.5% to EUR 149.8m, especially due to last year's floods and damage to cars. Meanwhile, nearly all subsidiaries abroad posted a drop in gross compensations paid out.

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