Key guidelines set out in the strategy:
- digitalisation and technological modernisation of operations to place the client at the centre;
- growth through acquisitions;
- seeking opportunities in environmentally/sustainability-oriented investment projects;
- closing the gap between intrinsic value and market price of shares.
Long-term strategic targets:
The long-term objective is to achieve, at the Group level and in terms of a 3-year average, a return on equity (ROE) that at is at least equal to the cost of capital. The internally-calculated cost of equity of the Sava Re Group with regard to its composition is 10.4% (+/– 0.5 p.p.).
In the period 2017–2019, the solvency ratio at the Group level will be in the range of 170% and 230% (between the bottom of the optimum/target range and the top of the suboptimal capital range).
Pomembnejše načrtovane postavke v letu 2018
* The net incurred loss ratio and the net combined ratio are given for the reinsurance and non-life insurance operating segments.
25: When calculating the combined ratio based on the planning financial statements for Sava Re, it is necessary to exclude part of the expenses relating to the administration of the Group that are not related to reinsurance business.
As at 31 December 2017, the insurance part of the Sava Re Group comprised – in addition to the controlling company Sava Re – seven insurers based in Slovenia and other countries of the Adria region, and one pension company based in Slovenia.
Composition of the Sava Re Group as at 31 December 2017
The Slovenian capital market (SBITOP) ended the year with a gain similar to other global capital markets. This gain was driven by the good financial performance of companies and above-average dividend yields.
Basic details about the POSR share
Sava Re rating profile
Sava Re is rated by two rating agencies, Standard & Poor’s and A.M. Best.
Financial strength rating of Sava Re
4: Credit rating agency Standard & Poor’s uses the following scale for assessing financial strength: AAA (extremely strong), AA (very strong), A (strong), BBB (adequate), BB (less vulnerable), B (more vulnerable), CCC (currently vulnerable), CC (highly vulnerable), R (under regulatory supervision), SD (selectively defaulted), D (defaulted), NR (not rated). Plus (+) or minus (–) following the credit rating from AA to CCC indicates the relative ranking within the major credit categories.
A.M. Best uses the following categories to assess financial strength: A++, A+ (superior), A, A– (excellent), B++, B+ (Good), B, B– (fair), C++, C+ (marginal), C, C– (weak), D (poor), E (under regulatory supervision), F (in liquidation), S (suspended).