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Slovenia's Sava Insurance Group H1 cons net profit soars

Slovenia's Sava Insurance Group H1 cons net profit soars wrangler/

LJUBLJANA (Slovenia), August 22 (SeeNews) – Slovenian reinsurer Sava Re said on Thursday that the consolidated net profit of its Sava Insurance Group rose by 59.3% year-on-year to 22.6 million euro ($25.1 million) in the first half of 2019, accounting for 52.5% of the planned full-year profit.

Sava Re said in December the group plans to generate a net profit of at least 43 million euro in 2019, up 10% compared to the previous year. 

The group's consolidated gross written premiums rose 9.1% on the year to 336.8 million euro in the first half, while its operating revenue increased 7.6% to 274 million euro, Sava Re, the ultimate parent company of the Sava Insurance Group, said in a filing to the Ljubljana Stock Exchange.

The growth in gross premiums written was contributed by Slovenian non-life insurance business (9.5% growth), non-Slovenian non-life insurance (18.2% growth), reinsurance business (6.6% growth), Slovenian life insurance business (1.5% growth) and non-Slovenian life insurance (8.2% growth).

The rise in operating revenues was primarily driven by the non-life segment and partly by acquisitions.

Elsewhere in Southeast Europe, the Sava Insurance Group has operations in Kosovo, North Macedonia, Montenegro, Serbia, and Croatia.

The Sava Insurance Group continues to make good progress on its strategy of acquisitions-based growth, the company said, adding that after Zavarovalnica Sava acquired the insurers ERGO Osiguranje d.d. and ERGO Zivotno Osiguranje d.d. in Croatia in February this year, Sava Re purchased 85% of Sava Infond in Slovenia, so that the members of the Sava Insurance Group now hold 100% of the voting rights in the company.

Furthermore, Sava Re said it has signed an agreement to acquire Slovenian health service provider Diagnosticni Center Bled d.o.o., with a view to obtaining an equity interest through ZTSR d.o.o.

Sava Re's shares closed at 16.5 euro on the Ljubljana Stock Exchange on Wednesday, down 0.60%.

In May, Sava Re said it decided to change its umbrella brand name Sava Re Group to Sava Insurance Group to test the strength of the brand that best describes the group.

($ = 0.90122 euro)