Sava Re,d.d · LJSE:POSR
Sava Re,d.d — Sava Re Group — Investor Presentation (February 2013)
39 slides from Sava Re,d.d's investor presentation, February 2013
Slide 1: Sava Re Group Investor Presentation
Sava Re Group Investor Presentation February 2013
Slide 2: Contents
Pozavarovalnica Sava, d. d. Contents 1 Sava Re Group Profile 2 Sava Re Group Performance & Strategy 3 Zavarovalnica Maribor & Acquisition Impacts 4 Presentation of Western Balkan Markets 5 Capital raising thesis February 2013
Slide 3: Contents: Sava Re Group Profile
Pozavarovalnica Sava, d. d. Contents 1 Sava Re Group Profile 2 Sava Re Group Performance & Strategy 3 Zavarovalnica Maribor & Acquisition Impacts 4 Presentation of Western Balkan Markets 5 Capital raising thesis February 2013
Slide 4: The Management Board
Sava Re Group Parent - Sava Reinsurance Company 4 The Management Board Zvonko Ivanušič Mateja Treven Srečko Čebron Jošt Dolničar Chairman Member Member Member Joined Sava Re Co in 2002; in Joined Sava Re Co at the Srečko has been a Member of the Jošt has been with Sava Re Co 2004 he became D
Slide 5: Group Structure at 31 Dec 2012
Sava Re Group Profile 5 Group Structure at 31 Dec 2012 * After capital increase of Velebit usluge, Sava Re holds the following stakes in the Croatian companies: Velebit osiguranje: 75,27% Velebit životno osiguranje: 69,58%
Slide 6: Shareholder Structure (at 31 Dec 2012)
Sava Re Group Profile 6 Shareholder Structure (at 31 Dec 2012) Shareholder No. of shares Holding Slovenska odškodninska družba, d.d. 2.340.631 25,00% Slovenian government Abanka d.d. 655.000 7,00% Poteza Naložbe d.o.o. – in liquidation 468.125 5,00% Pišljar Marjan 445.626 4,76% NFD 1, equity subfund
Slide 7: Key Info
Sava Re Group Profile 7 Key Info Overview 10 companies in reinsurance, non-life and life insurance business Maribor Reinsurance relations with numerous players worldwide Ljubljana Insurance operations in 6 markets of former Yugoslavia (1) Total consolidated GPW of EUR 271m Novo mesto Rat
Slide 8: Development & Growth 1973-2003
Sava Re Group Profile 8 Development & Growth DEVELOPMENT 1973 1991THROUGHOUT 2003TIME Consolidation of Sava Re’s Beginnings during Yugoslav position in Slovenia and KEY STORY BEHIND socialist period crystallisation of ownership structure DEVELOPING REINSURANCE BUSINESS 1973 – Starts as reinsurance 1
Slide 9: Development & Growth 2004-2008
Sava Re Group Profile 9 Development & Growth DEVELOPMENT 2004 2004 THROUGHOUT 2008 TIME 2008 2008 KEY STORY BEHIND Acquisition-driven expansion Expansion to life insurance to insurance markets of business and return to DEVELOPING INSURANCE BUSINESS former Yugoslavia Croatia 2004 – Acquires minority
Slide 10: Sava Re Group today – three key segments
Sava Re Group Profile 10 Sava Re Group today – three key segments REINSURANCE OPERATIONS Strategic guideline: profitable moderate SLOVENIA INTERNATIONAL growth on foreign V markets A L INSURANCE U OPERATIONS Strategic guideline: E improoving * profitability SLOVENIA * At 31.12.2012 associated compan
Slide 11: Strong Market Position in Western Balkans
Sava Re Group Profile 11 Strong Market Position in Western Balkans SAVA RE REINSURANCE NON-LIFE LIFE GPW E2012* CHANGE MARKET GROUP OPERATIONS OPERATIONS OPERATIONS (EUR MILLION) 2012/2011 SHARE 3Q2012 SLOVENIA Sava Re Tilia Insurance Tilia Insurance P: 131,9 +10,6 % PR: 5,1 % Company Company PR: 72
Slide 12: GWP by Operating Segment
Sava Re Group Profile 12 GWP by Operating Segment EUR 258m EUR 271m 100% 5% +4,1% 5% 80% 49% 46% 60% -0,2% 40% 20% 46% 49% +10,6% 0% 2011 E2012 Reinsurance Non-life Life *Estimated consolidated GWP 2012 based on unaudited data
Slide 13: Reinsurance Premium Split
Sava Re Group Profile 13 Reinsurance Premium Split Premiums by class of business Premiums by type of reinsurance Fire and natural forces 2,2% 1,9% 2,8% 2,2% Other damage to property Motor liability 5,9% 23,8% Lands vehicles casco Surplus 11,1% Personal accident 45,7% XL Ships hull 58,7% QS 11,7% 17,
Slide 14: Insurance Premium Split
Sava Re Group Profile 14 Insurance Premium Split Non-life premium by class (2012) Life premiums by type (2012) 2% 2% Motor liability 2% Lands vehicles casco Personal accident 4% 8% Fire and natural forces Unit-linked life Other damage to 8% EUR 43% 44% EUR property Life business General liability 12
Slide 15: Investments by Asset Class at Sep 2012
Sava Re Group Profile 15 Investments by Asset Class at 30 Sep 2012 EUR +8% EUR 450,0 380m 412m Other 6,7 -8% 400,0 7,3 8,3 Deposits with cedants -3% 54,1 8,6 350,0 +10% 49,1 4,4 Strategic shares 10,5 -58% 300,0 105,4 Mutual funds EUR million 85,7 +23% 250,0 200,0 Corporate bonds 104,0 +17% 121,4 150
Slide 16: Sava Re Group Performance & Strategy
Pozavarovalnica Sava, d. d. Contents 1 Sava Re Group Profile 2 Sava Re Group Performance & Strategy 3 Zavarovalnica Maribor & Acquisition Impacts 4 Presentation of Western Balkan Markets 5 Capital raising thesis February 2013
Slide 17: Key Figures – Estimate of 2012 Results
Sava Re Group Performance & Strategy 17 Key Figures – Estimate of 2012 Results Estimate Estimate 2012 (EUR million) 2011 Plan 2012 2012* / Plan 2012 GWP 258 >270 271 100,4 Net profit for the year 4 >10 11 110,0 31.12.2011 31.12.2012 Equity 148 >165 164 99,4 ROE 3% >6% >7% + 1 o.t. * Preliminary unau
Slide 18: Key Performance Indicators – Plan 2013
Sava Re Group Performance & Strategy 18 Key Performance Indicators – Plan 2013 Plan 2013 / (EUR million) Estimate 2012* Plan 2013 estimate 2012 GWP 271 >418 151,3 Net profit for the year 11 30-33 272,7 31.12.2012 31.12.2013 Equity 164 >240 146,3 ROE >7% 15%-16% + 8 o.t. * Preliminary unaudited resul
Slide 19: GWP – Planned Premium Growth
Sava Re Group Performance & Strategy 19 GWP – Planned Premium Growth By segment Sava Reinsurance Company & other insurers Zavarovalnica Maribor* 200 200 * Sava Re Co estimation 180 -12 % 180 186 188 160 +4 % 160 140 153 140 +1 % 120 134 131 120 126 100 EUR million 100 +1 % 80 80 60 +9 % 60 77 78 40
Slide 20: Sava Re Group Performance & Strategy
Sava Re Group Performance & Strategy 20 Reinsurance • Profitable growth in international markets operations • Lowering of business volume from Slovenia • Capital increase in order to acquire remaining share of Zavarovalnica Maribor (ZM) Slovenian • Integration of ZM into Group – 3 years to full sine
Slide 21: Strategic goals until 2017 and dividend policy
Sava Re Group Performance & Strategy 21 Strategic goals (until 2017) Consolidated gross written premiums > EUR 570m Average growth rate 2014-2017* > 5% Net combined ratio** < 95% Net expense ratio < 30% Net incurred loss ratio < 62% Return on investments > 3% Total assets > EUR 1.700m ROE > 11% * 20
Slide 22: Zavarovalnica Maribor & Acquisition Impacts
Pozavarovalnica Sava, d. d. Contents 1 Sava Re Group Profile 2 Sava Re Group Performance & Strategy 3 Zavarovalnica Maribor & Acquisition Impacts 4 Presentation of Western Balkan Markets 5 Capital raising thesis February 2013
Slide 23: Zavarovalnica Maribor
Zavarovalnica Maribor 23 Company Name: Zavarovalnica Maribor d.d. Registered office: Cankarjeva ulica 3, 2507 Maribor, Slovenia Website: www.zav-mb.si Company ID: 5063400 Tax number: 44814631 Gross Written Premium EURm Net profit Equity GWP ROE in % Employees Fire and damage 2007 4,155 51,123 234,34
Slide 24: Acquisition of ZM to Strengthen Sava Re Group
Acquisition of ZM to Strengthen Sava Re Group 24 Ranking of Insurance Companies Rank Rank Company name Country GWP 2011 YoY change P/L 2011 2011 2010 1 1 Zavarovalnica Triglav Slovenia 696.7 -3.4% 43.8 2 2 Croatia Osiguranje Croatia 370.3 -3.7% 10.4 3 3 Adriatic Slovenica Slovenia 265.6 1.6% 17.7 4
Slide 25: Consolidated GWP by operating segment
Zavarovalnica Maribor & Acquisition Impacts 25 Consolidated GWP by operating segment EUR EUR EUR Plan 2013 258m 271m 418*m Life 100% 3% 5% 5% Non-life 18% 27% 80% 49% 46% 60% Zavarovalnica Non-life 39% 61% EUR Maribor total 40% 484m 55% Life 49% 16% 46% 20% 22% 0% 2011 E2012 Plan 2013 Reinsurance 15
Slide 26: Total Group Assets
Zavarovalnica Maribor & Acquisition Impacts 26 Total Group Assets EUR EUR EUR Plan 2013 582m 622m 1.413m Unit-linked assets to total assets Other assets to 100% 2% total assets 10% 3% 16% 14% Receivables to 4% 12% total assets Financial 80% 4% 5% investments to 9% total assets 15% 17% 42% 60% Zavaro
Slide 27: Total Group Liabilities
Zavarovalnica Maribor & Acquisition Impacts 27 Total Group Liabilities EUR EUR EUR Plan 2013 582m 622m 1.413m 100% Technical Other liabilities to provisions for Equity to 12% 8% liabilities & equity liabilities & equity 15% unit-linked 4% business to 7% 4% 12% 4% liabilities & equity 80% 2% Technica
Slide 28: Estimated Effects of Improvements & Synergies
Estimated Effects of Improvements & Synergies 28 Pre-tax synergies (EURm) Area 2013 2014 2015 2015+ Employee synergies 2.66 3.46 3.46 4.36 IT savings 0.10 0.30 0.50 0.50 Cost reductions Rent optimization 0.10 0.10 0.10 0.10 Office savings 0.09 0.09 0.09 0.09 Products Underwriting Quality optimizatio
Slide 29: Presentation of Western Balkan Markets
Pozavarovalnica Sava, d. d. Contents 1 Sava Re Group Profile 2 Sava Re Group Performance & Strategy 3 Zavarovalnica Maribor & Acquisition Impacts 4 Presentation of Western Balkan Markets 5 Capital raising thesis February 2013
Slide 30: Markets that we are present
Markets that we are present 30 2.500 5,7 6,0 2.000 5,0 EUR million 4,0 1.500 2,7 3,0 % 1.000 2.037 1,9 2,0 1,6 1,6 2,0 500 881 1,0 601 113 78 68 0 0,0 Slovenia Croatia Serbia Macedonia Kosovo Montenegro GPW E2012 GPW/GDP E2012 1.500 1.046 993 GPW/capita 1.000 EUR 500 279 275 77 89 56 59 44 44 108 11
Slide 31: Markets that we are present
Markets that we are present 31 GPW growth GPW growth GDP growth (EUR million) GPW E2012 GPW P2013 E2012/2011 (%) P2013/2012 (%) P2013/E2012 (%) Slovenia total 2.036,8 1.986,1 -2,7% -2,5% -0,6% NON-LIFE 1.459,1 1.451,8 0,3% -0,5% * Source: UMAR LIFE 577,6 534,3 -9,5% -7,5% Croatia total 1.209,0 1.207
Slide 32: Capital raising thesis
Pozavarovalnica Sava, d. d. Contents 1 Sava Re Group Profile 2 Sava Re Group Performance & Strategy 3 Zavarovalnica Maribor & Acquisition Impacts 4 Presentation of Western Balkan Markets 5 Capital raising thesis February 2013
Slide 33: Capital raising process
Capital raising process 33 *Buying 51% stake in Maintaining solvency * The 51 % stake was initially bought Zav. Maribor ratios by SOD and Sava Re, of which SOD contributed EUR 50m and Sava Re EUR 15m. SOD then issued a call option to Sava Re for Internal sources + its entire EUR 55m ZM stake Deal va
Slide 34: Large Global Reinsurance peer comparison
Large Global Reinsurance peer comparison 34 Tot M Cap Revenue Comb. NI / Profit Name Ticker Assets P/E P/B (EURm) T12M ratio NL T12M (EURm) Swiss Re SREN VX 21,651 25,701 89.8 174,596 3,398 6.2 0.88 Muenchener Rueckver MUV2 GR 24,310 66,138 110.5 258,636 3,345 7.5 0.89 Hannover Rueckver HNR1 GR 6,89
Slide 35: Small Global Reinsurance peer comparison
Small Global Reinsurance peer comparison 35 Tot NI / M Cap Revenue Comb. Name Ticker Assets Profit P/E P/B (EURm) T12M ratio NL (EURm) T12M Lancashire Holdings LTD LRE LN 1,589 475 51.3 2,171 171 9.4 1.41 Arch Capital Group LTD ACGL US 4,888 2,520 96.6 14,671 553 15.6 1.32 Flagstone Reinsurance FSR
Slide 36: European peer comparison
European peer comparison 36 Tot M Cap Revenue Comb. NI / Profit Ime Oznaka Assets P/E P/B (EURm) T12M ratio NL T12M (EURm) Zav. Triglav ZVTG SV 386 986 76.6 3,118 50 7.7 0.71 PZU PZU PW 8,472 4,500 94.8 13,808 781 10.5 2.55 FBD Holdings PLC FBD ID 393 316 90.8 1,055 53 8.9 1.81 Vittoria Assicurazion
Slide 37: Investment thesis
Investment thesis 37 What? • Capital increase for EUR 55m in order to… • … acquire the rest of Zavarovalnica Maribor for EUR 65m. • Because valuation of Zavarovalnica Maribor is reasonable and opportunity came up. Why Zav. • To increase long term shareholder value (ROE > Cost of capital). Maribor? •
Slide 38: Thank you for your attention
Sava Re Group Thank you for your attention
Slide 39: Disclaimer
Disclaimer 39 DISCLAIMER This document is a presentation that includes projections (predictions) for the future. Details, statements and expectations presented in this document involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to diff
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