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Zavarovalnica Maribor Ends 2013 with EUR 4.8m Profit

Maribor, 28 March (STA) - Insurer Zavarovalnica Maribor, which was acquired by reinsurer Sava Re last year, made EUR 4.8m in net profit in 2013. According to chairman David Kastelic, profits would be significantly higher if they had not lost some EUR 22m due to shoring-up of the banks in the end of the year.

The insurer underwent three major events last year; apart from losing the money to the banks, Sava Re became the sole owner and former chairman Drago Cotar left after 23 years. According to Kastelic, this has led to some turbulences, but they had managed to keep their operations steady.

"We got in a bit less in premiums than in 2012 and a bit less then expected, but the fact is that we mainly lost it due to long-term measures with which we want to lower some risks," Kastelic stressed.

Touching on the payments of the damages, he noted that they were a bit higher than planned, but this was due to some leftover payments over the 2012 floods. The insurer paid out EUR 151.6m in damages, which is also the figure it plans to pay out this year. According to the insurer, EUR 110m was paid out for damage to property, while EUR 40m went for life insurances.

After Sava Re took the insurer over, Zavarovalnica Maribor launched an overhaul of all its products, its approach to the market and management of costs. The effects of these measures are expected to be felt in full in the next year.

The company plans to make a profit of EUR 15m this year, which, according to Kastelic, is ambitious but feasible. He noted however that the company cannot include natural disasters in its plans. The ice storm from early February had already cost the group around the insurer around EUR 6m.

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