Sava Insurance Expects 15-20% Less Profit Due to Lockdown

By , 17 Apr 2020, 13:38 PM Business
Sava Insurance Expects 15-20% Less Profit Due to Lockdown

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STA, 17 April 2020 - The insurance group Sava has adjusted its expected net profit for this year as a result of the crisis, saying on Friday it is likely to be about 15% to 20% lower than the initially planned EUR 45 million.

Sava originally projected this year's profit to miss last year's record mark of EUR 50.2 million by 10%. While it generated EUR 584.9 million in operating revenue last year, the plan for this year had been set at EUR 610 million.

The changed circumstances, which include an expected 6-8% drop in GDP, lockdown measures that could remain in place until the end of May and a major decrease in car insurance revenue, are likely to impact profit by 15-20% and revenue by 5-7%, the company said.

The assessed impact on the solvency ratio, initially expected to stand at 203% at the end of the year, is 10 to 15 percentage points.

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