LJUBLJANA (Slovenia), December 21 (SeeNews) – Slovenian reinsurer Sava Re [LJE:POSR] said on Friday it plans to generate a net profit of at least 43 million euro ($49.2 million) next year, up 10% compared to the profit estimated for 2018.
“The planned growth in the group’s operating revenue for 2019 exceeds 4.5%,” Sava Re said in a Ljubljana bourse filing. "The planned growth in profit translates into a growth in return on equity of at least 12%."
The group’s gross written premiums are expected to increase to around 555 million euro in 2019 from around 520 million euro planned for 2018.
“The key goals in Slovenia for 2019 relate to digitalisation and technological modernisation of operations to place the client at the centre of services and the way of working, with a special emphasis on web presence and mobile applications,” Sava Re noted.
Slovenian non-life business is planned to grow by 2%, while life insurance premiums are expected to drop by 4%, an expected result of a large number of upcoming policy maturities, the company noted, adding that the reinsurance segment is planning a 12% premium growth for 2019.
“The Group’s non-life insurers outside Slovenia are planning growth of 6% and life insurers expect to see gross premiums written grow by 13%,” the statement added.
Sava Re expects planned return on the group’s investments, still very much influenced by the low interest rate environment, at 1.7%.
“We will increase investments in infrastructure projects and real estate, which will account for 3.5–4.0% of total investments in 2019,” the company noted.
($ = 0.87468 euro)