Ljubljana, 19 May (STA) - Insurance group Sava posted a first-quarter net profit of EUR 10.3 million, down 5.6% year-on-year, as higher reinsurance claims and lower investment returns affected the bottom line despite a 17.3% increase in gross written premiums.
The moderate decline in group net profit was chiefly due to the lower result of the reinsurance segment owing to increased net claims incurred, reflecting business growth and a rise in the number of claims reported.
"However, profit was also lower because of a more modest investment result, partly reflecting the adverse developments in financial markets related to the early effects of Covid-19 and partly expenses for subordinated debt," the company said on Tuesday.
The group generated nearly EUR 149.0 million in operating revenue, up 16.2% over the year before, as gross premiums written rose by 15.1% to EUR 197.5 million.
The year-on-year results are not entirely comparable, as the acquisition of ERGO Osiguranje and ERGO Životno Osiguranje in Croatia, and the fund management company Sava Infond in Slovenia, had not been part of the consolidated accounts in the first quarter of 2019.