March 6 (SeeNews) - Slovenian reinsurer Sava Re [LJE:POSR] said that the consolidated net profit of the Sava Insurance Group declined by 10.4% to 68.2 million euro ($72.5 million) in 2022.
"This decline of 10.4% versus the prior year’s record result was expected, given the rising claims frequency as the impact of the pandemic subsided and drivers took back to the road, with certain additional negative impacts from claims inflation and major weather-related claims," Sava Re, the ultimate parent company of the Sava Insurance Group, said in a filing with the Ljubljana Stock Exchange on Friday.
The consolidated net profit exceeded the annual target by 13.7%, translating into a return on equity of 14.9%, which is almost a quarter above the target set in the 2020-2022 strategy, Sava Re said.
The group increased operating revenue to 753.6 million euro, 7.7% above target, while gross premiums written rose by 6.1% to 774.1 million euro.
The value of the investment portfolio decreased to 1.42 billion euro from 1.581 billion euro, chiefly due to the adverse financial market conditions and the resulting decline in the fair value reserve within equity, Sava Re said.
Elsewhere in Southeast Europe, the Sava Insurance Group has operations in Croatia, Kosovo, North Macedonia, Montenegro and Serbia.
($ = 0.9412 euro)