At the current share price dividend yield is 5.7%.
Sava Re published an announcement on the LJSE stating that they have received a counterproposal from VZMD (Pan-Slovenian Shareholders’ Association) regarding the profit distribution. To be specific, VZMD proposes EUR 20,14m to be appropriated for dividends, which translates into a dividend of EUR 1.3 per share.
At the current share price dividend yield is 5.7%.
VZMD stated that they believe that it is proper and desirable that the company allocate the majority of its distributable profit for distribution. VZMD believes that the company is capable of paying such a dividend to its shareholders without adverse impacts or otherwise impeding its plans.
In 2019, Sava Re grew its distributable and net profit year on year; nevertheless, it paid no dividends in 2020, contrary to the assurances given by the company’s representatives in general meetings over the past years as well as the company’s adopted dividend policy of increasing dividends by 10% annually. In addition, Sava Re has set itself a goal that in the period 2020–2022, it would annually distribute between 35% and 45% of the net profit of the Sava Insurance Group. The amount proposed for distribution represents just over 35% of the Group’s net profit.
The management board of Sava Re, on the other hand opposes the proposal of VZMD regarding the payment of a dividend of EUR 1.3 gross per share because it believes that the proposal of the management and supervisory boards, which is in line with the recommendations of the Insurance Supervision Agency, is appropriate. As a reminder, the management of the company proposed EUR 0.85 per share.
We deem that such a counterproposal will not likely be materialized given that the Management Board’s proposal is based on the Agency’s strictest criterion, by which the dividend must not exceed the average dividend paid in the period 2017–2019, which is EUR 0.85 per share.
In April, SBITOP observed a very strong increase of 7.6%, ending the month at 1,065.42 points.
The Ljubljana Stock Exchange (LJSE) published their trading statistics for April 2021, showing an equity turnover of EUR 37.5m. This translates into an average daily turnover of EUR 1.98m (+32% MoM).
Of the total value traded in the period (excluding block transactions), Krka generated EUR 15.04m (or 44%), followed by NLB Group with EUR 6.7m (or 20%). Next come Luka Koper with EUR 2.45m (or 7.2%) and Petrol with EUR 2.34m (or 6.9%). Sava Re follows with EUR 2.33m or (+6.9%). These 5 shares generated 85% of the turnover recorded by the entire (equity) market.
When observing the total equity market capitalization, it observed a 3.2% MoM increase and currently amounts to EUR 8.11bn (+7.9%).
April showed continuation of a positive sentiment on the LJSE, with SBITOP increasing by +7.6% MoM (ending April at 1,065.42 points). Of the blue chips, Luka Koper leads the list with an increase of 14.7%. Telekom Slovenije and Krka follow, with a solid increase of 10.8% and 10.5%, respectively. On the flip side, Sava Re observed a slight decrease of 0.9%. We also note that SBITOP is up by as much as 18.3% YTD.
Performance of SBITOP Constituents in April 2021 (%)
In Q1 of 2021, GWPs recorded an increase of 1.2% YoY. Of that Non-life observed an increase of 2.6%, while Life is down by 2.4%.
The Slovenian Insurance Association published their monthly update on the GWP development in Slovenia. As of end March, the Slovenian insurance market showed solid resilience with regards to the pandemic, as gross written premiums continue to increase. To be specific, total GWPs in Q1 increased by 1.2% YoY to EUR 724.7m. Of that non-life segment stood at EUR 530.3bn (+2.6%).
The mentioned segment, which accounts for 73.2% of the total GWPs, showed a relatively solid performance on the back of a very strong motor vehicles insurance, which noted an increase of 9.15% YoY. Meanwhile, health insurance as the largest non-life segment remained relatively flat YoY (at EUR 167.6m). Among non-life segment, one can also note a positive performance of the other damage to property insurance (+5%) and motor vehicle liability insurance (+2.2%). On the flip side, credit insurance continued its negative trend, decreasing by 18.6% YoY.
Turning our attention to the life segment, it recorded a 2.6% YoY decrease, reaching EUR 194.5m. Such a decrease could be almost entirely attributed to a poor performing life assurance segment of -11.3% YoY. This was somewhat offset by a pickup in unit-linked life insurance (+10.1% YoY), which has seen a sharp decrease in 2020.