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Sava Re Posts EUR 5.5M Net Profit in 2010

Ljubljana, 31 March (STA) - The group around reinsurance company Sava Re posted a net profit of EUR 5.5m for 2010, rebounding from a EUR 28.2m loss in the year before. The core company alone generated a EUR 7.2m profit, which compares to a EUR 12.6m loss in 2009, Sava Re said on Thursday.

Presenting the unaudited results, Sava Re chairman Zvonko Ivanusic told the press that the profit of the core company exceeded plans by 17.5%, while the group's profit was 3.1% over the target.

Sava Re collected a total of EUR 142.9m in gross premiums, which is 2.9% less than in 2009. Ivanusic pointed out that the total value of premium revenues in Slovenia was down 16.3% year-on-year.

He added that the company's ambition was to reduce its dependence on the domestic market and become more international. Premiums collected abroad were up by 15.9% and their share in the overall premiums was up to 50% from 41.9% in 2009.

The group meanwhile collected EUR 259.1m in gross premiums, up 3.1% year-on-year, with premiums on the Slovenian market increasing by 1%.

Growth was recorded in Serbia (19.7%), Croatia (17.3%) and Kosovo (14.1%), while the group saw its collected premiums drop in Montenegro and Macedonia by 12.6% and 8.6%, respectively.

The gross amount of damages paid out stood at EUR 131.3m last year, which is 12.1% less than in 2009. Last year was favourable in terms of damages, while 2008 and 2009 were the worst and second-worst years, respectively, the management said.

The company had to write off EUR 5m of its investments in 2010, but return on investment was nevertheless positive (0.8%) after two negative years.

Management board member Mateja Treven added that two capital injections as part of the group worth a total of EUR 4m were being carried out in the Western Balkans.

The company will not pay out dividends for 2010 and dividend payout is not planned for 2011 either.

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