November 21 (SeeNews) - Slovenian reinsurer Sava Re [LJE:POSR] has said that the consolidated net profit of the Sava Insurance Group fell by 18.8% on the year to 46.5 million euro ($48.2 million) in the first nine months of 2022.
“Net profit fell by 18.8% compared to the same period in 2021 due to an expected increase in the frequency of claims in auto insurance to pre-pandemic levels and this year's inflation, which led to an increase in claims and loss provisions. The drop in profit compared to the same period in 2021 was also influenced by investment expenses due to the lower value of mainly debt securities,” Sava Re, the ultimate parent company of the Sava Insurance Group, said in a filing with the Ljubljana Stock Exchange on Friday.
The group's consolidated operating revenue increased 1.7% to 558 million euro, the statement reads.
"The net cost ratio in the first nine months of 2022 was more favorable than planned, supported by all major segments, namely due to higher revenues and the dynamics of operating costs. The net combined ratio is still within the planned range, despite the worse loss situation in the property section Slovenia. The return on the investment portfolio is only slightly below the plan for 2022," Sava Re said.
Elsewhere in Southeast Europe, apart from Slovenia, the Sava Insurance Group has operations in Croatia, Kosovo, North Macedonia, Montenegro and Serbia.
($ = 0.96479 euro)