LJUBLJANA (Slovenia), January 6 (SeeNews) – Slovenian reinsurer Sava Re [LJE:POSR] said on Monday it plans to generate a net profit of at least 45 million euro ($50.2 million) in 2020, up from 43 million euro profit estimated for 2019.
“The group’s operating revenues for 2020 are planned to exceed 4%,” Sava Re said in a Ljubljana bourse filing. "Thus, the group will aim to achieve a return on equity of at least 11%."
The group’s gross written premiums are expected to increase to around 620 million euro in 2020 from around 555 million euro planned for 2019.
Growth in Slovenian non-life gross premiums written is planned at 3%, taking into account the expected slowdown in new vehicle sales. Life insurance gross premiums written are expected to decrease by 9%, which reflects the large number of policies maturing in the Slovenian life business segment,”Sava Re noted.
“Outside Slovenia, we expect insurance business to grow organically at rates exceeding the expected growth rates of gross domestic product,” Sava Re said, adding that the group’s non-life and life insurers outside Slovenia are planning their gross premiums written to grow by 6% and 15%, respectively.
Sava Re also said investment management in 2020 will be affected by the continued low interest rates, and the expected return will be 1.3%.
($ = 0.8957 euro)