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Sava Re Reports Lower Q1 Profit

Ljubljana, 31 May (STA) - The reinsurance company Sava Re generated EUR 735,728 in net profit in the first quarter of 2011, which is 13.3% less than in the same period last year. Net revenues from premiums were down 2.5% to EUR 27m, according to unaudited data released on Tuesday.

Sava Re recorded EUR 1.07m in earnings before interest, tax, depreciation and amortisation (EBITDA) in the first three months, a decrease from EUR 1.34m in the same period last year.

The reinsurer collected a total of EUR 42.8m in gross premiums, which is 6.8% less than in 2011. However the decrease was planned, because the company is reducing its dependence on the Slovenian insurance market, according to the management.

The gross premiums from the domestic market decreased by 4.2% and from the foreign markets by 9.8%, which is a greater fall than expected for the whole year.

The reason for the decrease in premiums was a loss of a major client in a Macedonian subsidiary. The company expects the premiums to reach the level of 2010 by the end of the year as it expects the premiums to grow in Asian markets.

Fewer gross premiums had impact on net revenues from premiums, which were down 2.5% to EUR 16.7m.

The gross damages amounted to EUR 16.9m in the first quarter, a 16.7% decrease compared to the same period last year. The net amount of damages paid out was down 10% to EUR 16.7m.

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