Sava RE Group 9M18: Excellent 3Q18 profitability enabled Sava RE to catch up to our estimates.
GWP grew by 5.2% YoY in 9M18, with growth rate accelerating from 1H18. In addition, strength was broad based, with weakness seen only in reinsurance and life in Slovenia (maturing). But even more importantly claims improved as there were less CAT events, and this recuperated weaker 1H18 from this side as well. EBT is now at EUR 37.3m, up 37%, while profit is at EUR 29.0m in 9M18, up 39% YoY. True, there are some one-offs in there. This means management target of EUR 37m to EUR 39m of profit for 2018 is still valid. This also means our decision not to lower estimates after weaker 1H18 proved correct. We see no reason to change our estimates now, while discount to peer group expanded in the period. Target price of EUR 23.5 per share remains unchanged as well as a buy recommendation.
Pozavarovalnica Sava dd (or Sava Reinsurance Plc), also known as Sava Re dd, is a Slovenia-based reinsurance undertaking. It operates as a parent company of Sava Re Group, which comprises direct insurance and pension undertakings. The Company's activities are divided into four segments: Reinsurance operations, Non-life insurance operations, Life insurance operations and Other business segment. The Reinsurance operations segment comprises treaty and facultative arrangements for intra-group clients and insurance and reinsurance partners worldwide. The Non-life insurance operations segment supports local markets with non-life insurance products and customer oriented services. The Life insurance operations segment is focused on life protection and saving products, including pension schemes. The Other business segment comprises operations of the Company's non-insurance subsidiaries. Sava Re Group operates through subsidiaries in Slovenia, Croatia, Serbia, Macedonia, Montenegro and Kosovo.
ALTA Invest, investicijske storitve, d.d., (ALTA Invest, investment services, Inc.) is a part of ALTA Group, the biggest financial non-banking group in Slovenia. ALTA Invest has around 28% market share on the domestic Ljubljana Stock Exchange and has more than EUR 95m of assets under management.
Our trading advantage is our execution of large trading blocks with low impact on the market. We offer trading on several platforms on numerous markets, with a wide variety of financial instruments. Our advantage is also a research department, which is both sell side and buy side and has the far most extensive and regular coverage of domestic companies. We cover 9 companies on Ljubljana Stock Exchange, which is around 90% of Mcap on LJSE – and here we are practically the only local broker providing this kind of extensive and regular coverage for Slovenian companies.
A part of ALTA Group are ALTA Skladi, a mutual fund asset management company with roughly EUR 260m of asset under management. ALTA Group is also extensively involved in corporate finance projects and raised considerable assets (fixed income and equity) in the last two years for several companies.
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