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Sava Re Reports EUR 28M Loss for 2009

Ljubljana, 08 April (STA) - The group around reinsurer Pozavarovalnica Sava made a loss of EUR 28.2m in 2009, Sava Re said in a statement on Thursday. Its officials blamed the loss on a large number of natural disasters as well as write-downs brought about by the financial crisis.

Sava Re made the loss despite a 9.5% rise in premiums, which amounted to EUR 251.4m.

The loss at the parent company amounted to EUR 12.6m, chairman Zvonko Ivanusic told the press in Ljubljana. Premiums at the core company rose by 9.7% to EUR 147.1m.

According to Ivanusic, summer storms and the global financial crisis had a major effect on the group's earnings. The latter caused write-downs of assets and made operations in the Western Balkans difficult.

The group saw premiums on the domestic market rise by 4.4%, while premiums on foreign markets, which accounted for 42% of the total turnover, rose by 16.5%.

Payouts related to hailstorms that struck Slovenia during the summer last year amount to EUR 25m, Ivanusic said. The insurer is looking to reduce its exposure to the domestic market as a result.

The only subsidiary to make a profit last year was insurer Tilia. The insurer reported a net profit of EUR 820,000 on premiums of EUR 72.2m in 2009 on Wednesday.

As a result of the difficult financial conditions, the group was forced to delay planned entry to the Bosnian and Albanian markets, Ivanusic said, adding the priority was on consolidating existing operations.

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