WOOD Flash – Sava RE: 3Q20 results review – on track to reach its 2020E targets
Sava RE has reported net income of EUR 15m (+2% yoy, -29% qoq) in 3Q20, resulting in a TTM ROE of 15%. Gross written premiums (GWP) grew by as much as 16% yoy, including the effect of Vita, while net earned premiums (NEP) increased 17% yoy. On claims, Sava performed quite well, too, as net claims saw an increase of only 6% yoy. The average investment yield of the insurer’s portfolio continued to decline in the quarter, but this was expected, given the current interest-rate environment. We calculate that operating revenues in the quarter came in at EUR 177m (+15% yoy). The insurer is on track to reach most of the targets in its revised 2020E plan. We believe the results could be viewed as neutral or slightly positive and, as the stock trades at 0.6x our book value estimates for 2020E and 2021E, we reiterate our 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.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.