Sava Re

Increased sales of unit-linked policies and term business boosted growth in Sava's life business. As a result, the contractual service margin (CSM) expanded steadily--as of June 30, 2024, it stood at €171 million, indicating growth of 10%. Sava's asset management unit benefited from strong inflows of new money in Slovenia as well as growth in its North Macedonian pension business. We expect the group to see continued strong growth in its foreign primary insurance operations in Adria until 2026. By contrast, growth in its reinsurance operations is likely to be only modest, given Sava's focus on solid performance over the reinsurance cycle. The stable outlook on Sava's core operating entities reflects our expectation that management will maintain its strategy of

...Sava Re's profit in the first half increased by 11% to 44.5 million and we expect full-year 2024 profit to remain strong at 60 million-76 million. Despite still-elevated inflation in Slovenia and other insurance markets, the group effectively mitigates the impact of elevated claim costs through consistent price adjustments, thereby safeguarding its underwriting profitability. As a result, its underwriting and operating performance was solid in the first half of 2024 and it reported a non-life combined ratio of 89.7% (under 100% indicates an underwriting profit). Given its performance in the first half of 2024, S&P Global Ratings anticipates that the group will achieve its targeted full-year profit of 70 million. The group also posted continued strong and stable results in life insurance and in its asset management business. We expect the frequency of larger claims to normalize over the rest of 2024; the combined ratio for the full year is expected to be 92%-95%. Investment results are also...

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