Zavarovalnica Triglav

Investor Presentation • Mar 7, 2024

Building a Safer Future

Triglav Group 2023 Unaudited Results

Investor Presentation

March 2024

triglav.eu

Disclaimer

Information in this presentation is based on the unaudited financial statements prepared in accordance with the new IFRS 9 and IFRS 17 standards effective from 1 January 2023. The data for the comparative periods were adjusted to reflect the implementation of the specified new standards from 1 January 2022 onwards.

The information, statements or data contained here in have been prepared by Triglav corporate officers. Zavarovalnica Triglav, d.d., or any member of Triglav Group, or any Zavarovalnica Triglav employee or representative accepts no responsibility for the information, statements or data contained herein or omitted here from, and will not be liable to any third party for any reason whatsoever relating to the information, statements or data contained herein or omitted here from. Such information, statements or data may not be prepared according to the same standards and requirements than the information, statements or data included in Triglav's own reports and press releases are prepared to, and accordingly the level of information and materiality and nature of the disclosures may be different. Undue reliance should not be placed on the information, statements or data contained herein because they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results to differ materially from those expressed or implied in such information, statements or data. Moreover, the information, statements and data contained herein have not been, and will not be, updated or supplemented with new or additional information, statements or data.

Agenda

2023 Highlights

Key Messages

Strong growth in business volume. Business results influenced by negative one-offs (NAT CAT; price regulation of supplemental health insurance in Slovenia). EBT in-line with revised profit guidance.

Robust financial stability and capitalisation at appropriate levels

In 2023 dividend paid in line with dividend policy

• CG: In 2023 re-election of three MB members and appointment new SB members
• ESG: Focus on delivering of sustainability ambitions. ESG framework upgraded.

2024 Outlook: Normalization of Triglav Group's operations in line with strategic guidelines

2023 Key Financials and KPIs

Major Nat CAT Loss Events

Extreme weather events in Slovenia and region, particularly storms, hailstorms and floods in July and August, resulted in historically high claims for Triglav Group and insurance industry in Slovenia.

*Gross losses of crops and active reinsurance included.

Most frequent Triglav´s CAT loss events are flood, storm, hail and frost.

Robust Financial Stability and Strong Capital Base

Decrease in equity mainly result of dividend payment in 2023

Majority of capital is Tier 1 eligible. Capital management centralised at Group level (capital concentration at parent company)

No major changes compared to 2022YE. Further increase of underwriting risk (higher volume of business and claims, also CAT), decrease of market risk.

High ″A″ Credit Ratings/Stable

Triglav Group's standalone credit profile (S&P*):

Business risk profile – strong

Financial risk profile – very strong

Stable and solid reinsurance protection

	Year	Credit rating	Medium-term outlook	Rating Agency
2023	2023	A	Stable	AM Best S&P Global Ratings*
2016	2022	A	Stable	AM Best S&P Global Ratings
	2021	A	Stable	AM Best S&P Global Ratings
	2020	A	Stable	AM Best S&P Global Ratings
	2019	A	Stable	AM Best S&P Global Ratings
	2018	A	Stable	AM Best S&P Global Ratings
	2017	A	Stable	AM Best S&P Global Ratings
	2016	A	Stable	AM Best S&P Global Ratings
	2015	A-	Positive	AM Best S&P Global Ratings
	2014	A- A-	Positive Stable	AM Best S&P Global Ratings
	2013	A- A-	Stable Stable	S&P Global Ratings AM Best
		BBB+	Positive	S&P Global Ratings
	2012	A-	Negative	S&P Global
	2011	A	Negative	S&P Global
	2010	A	Stable	S&P Global
2008	2009 2008	A A	Stable Stable	S&P Global S&P Global

Dividend Paid in line with Dividend Policy. 7% Dividend Yield.

Gross DPS Paid (in €) and Dividend Payout Ratio (% consolidated net profit)

Gross dividend per share (in EUR)

% of consolidated net profit for the previous year

2024 AGM on 4 June 2024

Dividend policy:

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0

Minimum dividend pay-out is set to 50% of consolidated net profit for previous year. Triglav will strive not to reduce its dividend payment below level of previous year.

Dividend policy is subordinated to achieving medium-term sustainable target capital adequacy of Triglav Group.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Leading Market Position in Adria Region

2023 Unaudited Results

Financials & Investments

2023 Performance at a Glance (unaudited data)

P&L Highlights	2023	2022*	Index
Total business volume (1+2)	1,780.2	1,594.3	112
Gross written premium (1)	1,653.7	1,479.6	112
Other income (2)	126.5	114.8	110
Total revenue	1,425.2	1,273.9	112
Insurance operating result (a)	-9.4	-12.6
Insurance revenue	1,351.2	1,206.6	112
Claims incurred	1,021.2	767.7	133
Acquisition & admin.costs incl. non-attributable costs	363.0	325.1	112
Net reinsurance service result	31.6	-104.5
Net other insurance revenue and expenses	-7.9	-21.9
Net Investment result (b)	22.0	-14.3
Investment result	83.6	-88.6
Financial result from insurance contracts	-69.7	82.2
Change in provisions for not achieving guaranteed yield	8.1	-9.8
Gains/losses &impairments of investments in associates	0.0	1.8
Result from non-insurance operations (c)	8.4	16.9	50
Earnings before tax (a+b+c)	21.1	-10.0
Net earnings	16.3	-7.0
Other comprehensive income	34.7	-50.9

(in €M)				(in €M)
	Financial position indicators	2023	2022*	Index
	Balance sheet total	4,099.0	3,802.3	108
	Equity	891.1	897.0	99
	Contractual service margin (CSM)	238.4	186.4	128
	Asset under management (AUM)	4,851.4	4,379.8	111
	Number of employees	5,318	5,306	100

Key performance indicators	2023	2022*
Combined ratio NL & Health	101.6%	99.7%
Claims ratio NL & Health	76.3%	74.6%
Expense ratio NL & Health	25.3%	25.1%
Return on equity	1.8%	-0.7%
Return on financial investments	1.8%	-0.4%
NL: Combined ratio	99.4%	99.6%
Life & Pensions: New business margin	14.6%	11.4%
Health: Combined ratio	112.9%	100.1%

*Under IFRS 17 and IFRS 9, 2022 results are significantly lower than under previously applicable IFRS 4 and IAS 39 mainly due to differences in measurement of insurance technical provisions and recognition of effects of revaluation of financial investments. 2022 results in accordance with IFRS 17 are negatively affected by prudential additional reserving due to sharp rise in inflation, whereas – unlike under IFRS 4 – result was not positively affected by effects of release of provisions from past periods.

EBT of Triglav Group

Business results under influence of solid investment results and negative results from underwriting activities due to low results of Non-Life and loss in Health. Increased expenses and claims intensity due to inflation.

Result from non-insurance Total EBT

Structure of EBT (in €M) EBT by Business Segments (in €M)

Net investment result

Insurance operating result

Growth in Total Business Volume

GWP by Segments and Markets

1,654

GWP by Segments (in €M)

Strong GWP growth in Non-Life due to price increases and increased business volume

GWP by Markets (in €M)

Claims Incurred

Claims Incurred by Segments (in €M)

Claims Incurred Y-o-Y Development (in €M)

Financial Investments

Portfolio structure (in €M; Insurance portfolios, Unit-linked portfolios and Assets from financial contracts)

Instruments (in €M)	2023	2022	Index
Investment property	68.0	68.3	99
Investments in associates	37.7	37.8	100
Shares and other variable income securities	168.7	199.8	84
Debt and other fixed-income securities		1,860.0 1,801.7	103
Loans given	6.6	5.8	113
Bank deposits	65.8	79.5	83
Other financial instruments	0.9	0.9	93
Total (1)		2,207.6 2,193.8	101
Unit-linked life insurance contract investments (2)	540.9	469.5	115
Financial investments from financial contracts (3)	650.0	589.0	110
Total (1+2+3)		3,398.5 3,252.4	104

Return on financial investments of insurance portfolios

(in €M)	2023	2022
Interest income¹	35.1	26.7
Dividend income	2.7	4.7
Net gains/losses on fin. assets at FVTPL	9.4	-11.9
Net gains/losses on fin. assets at AC	0.0	0.0
Net gains/losses on fin. assets at FVOCI	-9.3	-23.9
Net impairment/reversal of impairment of fin. assets	2.3	-7.5
Other investment income/expenses	-2.7	0.4
Total return on fin.investments² (a)	37.5	-11.6
Gains/losses and impairments of investments in associates (b)	0.0	1.8
Total (a+b)	37.4	-9.7
Return on investment²	1.8%	-0.4%
¹Calculated using effective interest method ²Unit-linked life insurance assets excluded

High Quality Investment Portfolio

Debt instruments

(Assets from united-linked products and financial contracts excluded)

Segment: Non-Life

(in €M)	2023	2022	Index
Total business volume (1+2)	1,237.1	1,070.3	116
GWP (1)	1,168.3	1,009.2	116
Other income (2)	68.8	61.1	113
Total revenue	1,070.5	939.3	114
Insurance Operating Result (a)	0.8	-16.8
Insurance revenue	1,056.2	923.5	114
Claims incurred	779.7	552.3	141
Acquisition & admin. costs incl. non-attribut. Items	293.6	256.7	114
Net reinsurance service result	30.0	-105.2
Net other insurance revenue/expenses	-12.0	-26.1
Net investment result (b)	10.9	0.5
Earnings before tax (a+b)	11.6	-16.3
Combined Ratio NL	99.4%	99.6%
	31 Dec 2023	31 Dec 2022	Index
CSM	16.7	16.2	103
RA	30.2	42.5	71
Net liabilities from insurance contracts	978.7	794.4	123
Net assets from reinsurance contracts	320.9	172.0	187

Combined Ratio Non-life

Segment: Life & Pensions

(in €M)	2023	2022	Index
Total business volume (1+2)	290.2	268.7	108
GWP (1)	278.8	266.2	105
Other income (2)	11.3	2.5	452
Total revenue	102.0	88.5	115
Insurance Operating Result (a)	16.7	5.1	326
Insurance contract revenues	85.4	78.1	109
Claims incurred	25.6	31.0	82
Acquisition & admin. costs incl. non-attribut. Items	48.5	47.6	102
Net reinsurance service result	1.6	0.7	222
Net other insurance revenue/expenses	3.8	4.9	78
Net investment result (b)	11.4	-7.3
Earnings before tax (a+b)	28.1	-2.2
New business margin NBM	14.6%	11.4%
CSM sustainability	1.2	1.2	102
	31Dec 2023	31Dec2022	Index
CSM	221.7	170.1	130
RA	33.3	26.1	128
Net liabilities from insurance contracts	1,305.7	1,233.4	106
Net assets from reinsurance contracts	0.4	7.9	5

Life CSM Y-o-Y Development (in €M)

New Business Margin (in %)

Segment: Health

(in €M)	2023	2022	Index	Combined Ratio Health
Total business volume (1+2)	206.7	205.2	101
GWP (1)	206.5	204.2	101		112.9%
Other income (2)	0.2	1.0	24
Total revenue	210.8	205.1	103	100.1%	9.9%
Insurance Operating Result (a)	-26.8	-1.0		10.2%
Insurance revenue	209.7	205.0	102
Claims incurred	215.9	184.4	117
Acquisition & admin. costs incl. non-attribut. Items	20.9	20.9	100
Net reinsurance service result	0.0	0.0			103.0%
Net other insurance revenue/expenses	0.3	-0.7		89.9%
Net investment result (b)	-3.0	-0.9
Earnings before tax (a+b)	-29.8	-1.9
Combined Ratio Health	112.9%	100.1%
	31 Dec2023	31Dec2022	Index
CSM	0.1	0.1	99	2022	2023
RA	5.6	3.8	145
Net liabilities from insurance contracts	34.1	43.5	79
Net assets from reinsurance contracts	0.0	0.0		health insurance until	2023 YE.

Negative effects of price limitation of supplemental health insurance until 2023 YE.

Segment: Asset Management and Other Non-insurance

Non-Insurance Business (in €M)	2023	2022	Index
Total business volume	46.2	50.2	92
Net other operating income	21.2	26.3	81
Income from AM	32.7	30.8	106
Net other income	1.2	1.1	104
Result from non-insurance operations (a)	8.4	16.9	50
Net investment result (b)	2.7	-6.6
Earnings before tax (a+b)	11.1	10.3	108
Asset under Management (in €M)	2023	2022	Index
Slovenia: Mutual funds & individual (1)	1,699.3	1,389.5	122
N Macedonia: Pensions (2)	143.1	88.1	162
BiH: Mutual funds (3)	6.1	4.3	142
Total (1+2+3)	1.848,4	1.481,8	125
Trigal (4)	122.2	99.6	123
BiH: Pensions (5)	18.3	13.7	133
Total (4+5)	140.5	113.3	124
Total	1,989.0	1,595.1	125

Net other operating income lower due to last year's realised one-off gains on the disposal of real estate investments.

Growth of income from Asset management (+6% y-o-y) and positive investment return of EUR 2.7M (vs. negative -6.6M in 2022).

AuM rose due to net inflows and capital markets fluctuations.

2024 Outlook

2024 Outlook

Earnings Before Tax (in €M)

In 2024, normalization of Triglav Group's operations in line with strategic guidelines. Continued focus on growth, development activities and improved client-centric approach.

Total Business Volume (in €M)

In 2024 impact of discontinuation of supplemental health insurance included

Combined Ratio NL & Health (in %)

Group expects macroeconomic situation to improve in 2024. Its performance will depend on financial market trend, impact of termination of supplemental health insurance, reinsurance coverage and market potential of its markets.

For more information, please contact

Investor Relations Department Helena Ulaga Kitek, Director of IR Email: investor.relations@triglav.si Website: www.triglav.eu

2024 Financial Calendar

Planned date¹	Time¹	Type of announcement
Wednesday, 6 March 2024	8:30	Preliminary key figures 2023
Friday, 29 March 2024	8:30	Audited annual report for 2023
Friday, 26 April 2024		Convocation Notice of General Meeting of Shareholders on distribution of profit
Wednesday, 22 May 2024	8:30	January – March 2024 Results
Tuesday, 4 June 2024		General Meeting of Shareholders and notice of its resolutions
Thursday, 22 August 2024	8:30	January – June 2024 Interim Report
Wednesday, 20 November 2024	8:30	January – September 2024 Results

¹ Central European Time. Dates and times are provisional and are subject to change.

Triglav is the highest mountain in Slovenia and the highest peak of the Julian Alps (2,864 meters/9,396 ft)