Slovenia’s Sava Insurance Group forecasts a 53 million euro ($65 million) net profit for 2021, up from 50 million euro this year’s plan , reinsurer Sava Re [LJE:POSR], the ultimate parent company of the group said.

The group plans to earn gross written premiums of over 685 million euro next year, up from the 640 million euro planned for 2020, Sava Re, said in a statement on Friday.

The profit planned for 2021 will translate into a return on equity of at least 11.5%.

“The management board believes that, given the impacts of the Covid-19 pandemic, the business plan is ambitious and has considered all key aspects required to support the Group’s sustainable long-term development, risk management and appropriate profit generation,” Sava Re said.

It added that in 2021, the group’s key development areas will include digital transformation and placing the customer at the centre, IT transformation and acquisitions-based growth.

In Slovenia, the company is planning 2% growth of gross non-life insurance premiums, taking into account the expected slowdown in car sales and the longer economic recovery from Covid-19. Gross life insurance premiums written in Slovenia are seen up 23%, reflecting the full-year inclusion of recently acquired life insurer Vita in the group.

Outside of Slovenia, the Sava Insurance non-life and life companies are seen increasing their gross premiums written by 8%.

The reinsurance segment expects to see its gross premiums rising 1% in 2021, due to more selective reinsurance underwriting focused on profitability.

“The key goals of the investment policy in 2021 remain maintaining low volatility and high level of security of invested insurance contract assets, as well as ensuring high liquidity and risk diversification,” Sava Re said. “The investment portfolio structure will also remain relatively conservative in 2021, with a high share of bonds and other fixed-rate investments and a high credit rating profile, but with a slightly higher allocation to infrastructure and real-estate funds, and infrastructure debt.”

In Southeast Europe, the Sava Insurance Group has operations in Slovenia Croatia, Kosovo, North Macedonia, Montenegro and Serbia.

Sava Re’s shares closed flat at 18.30 euro on Friday on the Ljubljana bourse. They did not trade at opening on Monday.