For 2019, SAVA Re Group targets a growth of over 4.5% in the Group's operating revenue, and a net profit of minimum EUR 43 million, 10% over the profit estimated for 2018, corresponding to a growth in ROE of at least 12%, the Slovene groups has announced.

The key goals in Slovenia for 2019 relate to digitalization and technological modernization of operations to place the client at the centre of services and the way of working, with a special emphasis on web presence and mobile applications. Development will also be focused on innovative services and products supported by new technologies. In 2019, special emphasis will be laid on the development of assistant services in connection with insurance products, and in the provision of assistance through our service centre. Slovenian non-life business is planned to grow by 2%, while life insurance premiums are expected to drop by 4%, an expected result of a large number of upcoming policy maturities.

The reinsurance segment is planning a 12% premium growth for 2019. Growth will be achieved through larger volumes in new markets, also thanks to the improved credit ratings, which in 2018 are both at the "A" level. Furthermore, SAVA Re will remain dedicated to portfolio diversification and accumulation control.

The Group's non-life insurers outside Slovenia are planning growth of 6% and life insurers expect to see gross premiums written grow by 13%. In the non-Slovenian markets where the Group operates, it expect high organic growth (exceeding local GDP growth). Non-life insurers will be expanding their product range by adding assistance products, and all will seek opportunities to develop alliances with banks.

Gross inflows of pension funds are planned to grow by over 30%, mainly because the Macedonian pension company, which joined the Group in March 2018, will be included in the consolidated accounts for the full year. The Slovenian pension company expects to see 2% growth of gross inflows and the Macedonian pension company 10% growth on an annual basis.

The planned return on the Group's investments - still very much influenced by the low interest rate environment - is 1.7%; however, in view of the 2018 estimate, no further significant declines are expected. Key shifts in the portfolio structure include a higher allocation to government bonds and cash, a lower allocation to covered and corporate bonds, and a move towards relatively shorter-maturity assets due to the expected turn in capital markets towards higher interest rates. We will increase investments in infrastructure projects and real estate, which will account for 3.5-4.0% of total investments in 2019.

In the next year, the Sava Re Group will devote special attention to the development of complementary segments to insurance products with an emphasis on innovative services supported by new technologies. The management board believes that while the business plan is ambitious, it takes into account all key aspects of sustainable development in the achievement of an adequate level of Group profitability.