The group's "operating revenue reached 51.5% of the original full-year 2020 target, and the net profit 71.5% of the original annual target", says the report.

Sava, which acquired Vita, the insurance arm of the NLB bank, earlier this year, said that "in addition to intensive acquisition activities, this growth was achieved through seeking opportunities to expand FoS business (freedom of services) written by Zavarovalnica Sava in cooperation with various EU partners, and through growth in reinsurance business".

While Covid-19 affected growth in most operating segments, non-life gross premiums written in Slovenia, excluding FoS business and non-life business of Vita, grew by 4% year-on-year. The Slovenian life business, in which some maturities of existing policies were anticipated, excluding the life insurance part of Vita, saw a 4% drop in premiums.

There was also a 2% drop in the group's non-Slovenian non-life premiums and operating revenues of assistance business also saw a decline. "Covid-19 had a major impact on the financial markets, eroding the value of assets under management in pension companies and in the fund management company."

The company meanwhile reports of an improved expense ratio, which helped improve profitability along with "a more favourable claims experience in Slovenia thanks to a lower loss rate in the motor business".

A significant contribution to the net profit for the period came from the acquisition of Vita, consolidated in the accounts as from 31 May 2020.

"Through this acquisition, the group doubled its market share in the Slovenian life insurance market, while also generating a one-off income of EUR 6.8 million from the excess of the fair value of the net assets acquired over the cost of the investment in Vita."

Without the effects of Vita, the group's net profit would total EUR 24.5 million, up 8.4% year on year, and 54.4% of the original full-year 2020 target, the report says, while announcing revised annual and strategic plans have been published as a result of the material impact of Vita.

Sava adds that its portfolio structure, consisting of "predominantly highly rated government and corporate bonds" has been resilient to financial market volatility, with the return standing at 1.5% in the first half of the year.

The company moreover points out that Standard & Poor's has affirmed the A insurer financial strength rating on Sava Re and Zavarovalnica Sava. The outlook is stable.