Zavarovalnica Triglav

Interim / Quarterly Report • Sep 1, 2023

Triglav Group H1 2023 Results

Investor Presentation

August 2023

Building a Safer Future

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 data do not contain elimination of intercompany transactions.

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.

© Triglav Group: H1 2023 Results Investor Presentation

2023 Profit Guidance 3 4

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H1 2023 Highlights

Key Messages

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Profitable and safe operations with growth in business volume. Positive investment returns. Loss in Health. Increased service expenses not yet fully offset with income growth. Financial stability and capitalisation at appropriate levels despite challenging economic situation.

Unexpected changes to Slovenian healthcare system In 2023 loss in Group's supplemental health insurance due to price regulation and other

H1 2023 operations
Unexpected changes to Slovenian healthcare system	In 2023 loss in Group's supplemental health insurance due to price regulation and other restrictions
Net CAT events In Q3 2023 (floods, hail)	Unprecedentedly high CAT claims in Slovenia and the region
	in 2023 realised annual result around 80% lower than initially planned
Corporate governance	MB: In March 2023 Blaž Jakič began term of office as MB member representatives
Sustainable development	ESG framework upgraded with Sustainable Development Policy, Sustainable Investment Policy and PAI statement (in accordance with SFDR)

2023 Outlook Due to changes to Slovenian healthcare system and unprecedented extreme weather events in 2023 realised annual result around 80% lower than initially planned

Dividend In 2023 In 2023 dividend paid of EUR 2.50 gross per share (51% dividend payout; 7% dividend yield)

MB: In March 2023 Blaž Jakič began term of office as MB member SB: Appointment Tim Umberger and Monica Cramer Manhem as SB members – shareholder

Sustainable development ESG framework upgraded with Sustainable Development Policy, Sustainable Investment Policy and PAI statement (in accordance with SFDR)

H1 2023 Key Financials

TOTAL BUSINESS VOLUME PROFIT BEFORE TAX COMBINED RATIO NON-LIFE&HEALTH

€955.4M €10.5 €102.2%

Up by 11% y-o-y €-3.7M in H1 2022 101.1% in H1 2022

GWP	+12%	€893.5M
OTHER INCOME	-3%	€61.8M
Total	+11%	€955.4M

investment returns due to favourable

• Growth in business volume. Positive conditions on financial markets
• healthcare system in Slovenia

▪ Impact of loss in Health due to changes in

• Non-Life: CoR 97.0% (-4 pp y-o-y) under influence of claims inflation and higher insurance revenue
• Health: CoR 129.5% due to price regulation on Slovenian market (claims ratio 118.2%)

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H1 2023 Results Financials & Investments

H1 2023 Performance at a Glance

H1 2023	H1 2022**	H1 2023/ H1 2022	Key performance indicators H1 2023 H1 2022
955.4	861.2	111	ROE annualised 2.3% -0.8%
893.5	797.2	112	Claims ratio 78.8% 78.2%
737.9	658.9	112	Expense ratio 23.4% 22.9%
19.9	24.0	83	Combined ratio Non-life and Health 102.2% 101.1%
53.8	-72.6		Combined ratio Non-life 97.0% 101.0%
-46.6	72.9		CSM of new contracts/Total CSM 9.5% 11.5%
214.4	188.8	114
10.5	-3.7
9.9	-3.7
8.7	-42.8
30 Jun 2023	31 Dec 2022	30 Jun 2023/ 31 Dec 2022
4,039.7	3,901.1	104
856.2	894.3	96
208.7	186.4	112	**Under IFRS 17 and IFRS 9, last year's results are significantly lower than
73.6	70.8	104	under the previously applicable IFRS 4 and IAS 39, and this is mainly due to
5,309	5,306	100	differences in measurement of insurance technical provisions and recognition of effects of revaluation of financial investments.

**Under IFRS 17 and IFRS 9, last year's results are significantly lower than under the previously applicable IFRS 4 and IAS 39, and this is mainly due to differences in measurement of insurance technical provisions and Last year's H1 result in accordance with IFRS 17 was 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.

Financial Stability and Strong Capital Base

Solvency Ratio Equity (in €M)

H1 2023: Capitalisation at appropriate levels

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

H1 2023: Decrease in equity mainly result of dividend payment in 2023

Risk Profile

H1 2023: No major changes compared to 2022 YE. Further increase of underwriting risk (higher volume of business and claims, also CAT), decrease of market risk, slightly increased credit risk (higher investments in cash). Risk regarding operations of Triglav health insurance company.

Structure of Profit Before Tax of Triglav Group

PBT from Insurance (in €M)

*Net of investment guarantees

PBT from Insurance by Segments (in €M)

PBT from Non-Insurance (in €M)

H1 2023 PBT stemmed equally from insurance and non-insurance operations (mainly asset management). Insurance business under influence of solid investment result and negative result from underwriting activities due to loss in Health. Increased expenses and claims intensity due to inflation.

Growth in Total Business Volume

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Development from H1 2022 to H1 2023 (in €M)

Components	(in M€; growth y-o-y)
GWP (premium)	893.5 (+12%)
Other Income	61.8 (-3%)
Total	955.4 (+11%)

By Components

Strong GWP growth due to price increases and increased business volume. Decrease in Other income due to last year's realised one-off gains on disposal of real property.

Business Volume Growth by Insurance Segments

Total Business Volume by Segments (in €M)

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Gross Written Premium by Segments (in €M)

Increased Insurance Service Revenue and Service Expenses

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Major Nat CAT Loss Events in H1 2023

Nat CAT losses

(estimated values; in €M)

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

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Note about expected Nat CAT effects in Q3 2023:

Extreme weather events in Slovenia and region, particularly storms, hailstorms and floods in July and August, resulted in historically high claims for Triglav Group. They are currently estimated at EUR 150–200 M. Taking into account reinsurance coverage, their negative impact on Group's PBT is estimated between EUR 40 and 50 M.

Operating Costs Under Influence of Inflation

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Gross Operating Expenses (in €M)

214.4

Insurance Gross Operating Expenses			(in M€; as at H1 2023; growth y-o-y)
Non – life	150.5	+15%	Insurance gross operating expenses increased
Life & Pensions	30.7	+6%	predominantly due to higher acquisition costs and labour costs
Health	11.5	+19%
TOTAL:	192.7	+14%

Insurance Gross Operating Expenses by Segments

Combined ratio Non-Life & Health

Triglav Group's Combined Ratio NL & Health

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H1 2023 CoR (102.2%) influenced by loss in Health. H1 2022 CoR (101.1%) impacted by last year's additional reserving due to sharp rise in inflation. Last year's adjustments of insurance premiums to inflation are reflected in this year's income but increased operating expenses due to inflationary pressures that have been present since early 2022 are still not fully offset.

© Triglav Group: H1 2023 Results Investor Presentation

Solid Investment Return and Profitability of Insurance Business

Return on financial investments¹ (in M€)	H1 2023	H1 2022
Interest income²	16.5	11.9
Dividend income	0.5	0.3
Net gains/losses on fin. assets at FVTPL	3.1	-9.9
Net gains/losses on fin. assets at AC	0	0
Net gains/losses on fin. assets at FVOCI	-1.6	-2.8
Net impairment/reversal of impairment of fin. assets	1.6	-2.3
Other investment income/expenses	-3.6	1.5
Total¹	16.5	-1.2
Total with United-linked life contracts	53.8	-72.6

Financial investments

Annualised return¹: 1.6% (in H1 2022: -0.1%)

¹ Unit-linked life insurance assets excluded

² Calculated using effective interest method

Life & Pensions

New Business Margin: 13.1% (up by 2.2 pp y-o-y)

Combined Ratio NL & Health

Net Claims ratio Expense ratio

Non-life & Health

Robust Profitability of Our Business Model (CSM)

Total Contractual Service Margin (CSM) development (in €M) ▪ New CSM is confirmation of further profitability of

• our new business
• CSM of new contracts/CSM: 9.5%
• 82% CSM of new contracts from Life business

Contractual service margin (CSM) includes unearned profit that Company expects to earn from insurance contracts. It is calculated based on expected future cash flows (inflows and outflows), taking into account time value of money and risk adjustment.

Segment: Non-Life

(in €M)	H1 2023	H1 2022	Index
Total business volume	687.0	597.1	115
Total revenue	560.3	483.5	116
Insurance contract revenue	552.8	474.3	117
- premium allocation approach (PAA)	536.4	460.5	116
- general model (BBA)	16.4	13.8	119
Insurance service expenses	467.3	417.7	112
- premium allocation approach (PAA)	460.4	414.9	111
- general model (BBA)	6.9	2.9	243
Result from reinsurance contracts	-46.3	-39.4
Insurance contract result	39.2	17.2	227
Financial result from insurance contracts	-2.1	-0.6
Investment result	5.8	-0.2
Operating expenses	150.5	130.6	115
Profit before tax	23.2	-5.1
Other comprehensive income	5.8	-37.4
Combined ratio	97.0 %	101.0 %	-4.0 p.p
CSM of new contracts/CSM	22.2 %	28.3 %	-6,1 p.p
Expenses to insurance revenue ratio	27.2 %	27.5 %	-0,3 p.p
	30 Jun 2023	31 Dec 2022	Index
Contractual service margin (CSM)	15.7	16.2	97
Risk adjustment (RA)	41.5	41.0	101
Net liabilities from insurance contracts	996.5	886.4	112
Net assets from reinsurance contracts	320.2	261.1	123

Segment: Life&Pensions

(in €M)	H1 2023	H1 2022	Index
Total business volume	141.2	135.8	104
Total revenue	46.5	42.8	109
Insurance contract revenue	41.7	38.1	110
- general model (BBA)	27.5	25.6	107
- variable fee approach (VFA)	14.2	12.5	114
- premium allocation approach (PAA)	0.0	0.0	96
Insurance service expenses	31.6	31.1	102
- general model (BBA)	21.9	21.2	103
- variable fee approach (VFA)	9.7	9.9	98
- premium allocation approach (PAA)	0.0	0.0
Result from reinsurance contracts	0.0	0.4	-6
Insurance contract result	10.0	7.4	136
Financial result from insurance
contracts	-44.4	73.4
Investment result	47.0	-66.8
Operating expenses	30.7	28.8	106
Profit before tax	12.9	-0.7
Other comprehensive income	1.5	-0.3
CSM of new contracts/CSM	8.5%	10.3%	- 1,8 p.p
New business margin	13.1%	10.9%	2,2 p.p
Expenses to insurance revenue ratio	73.6%	75.7%	-2,2 p.p
	30 Jun 2023	31 Dec 2022	Index
Contractual service margin (CSM)	192.9	170.1	113
Risk adjustment (RA)	28.2	26.1	108
Net liabilities from insurance contracts	1,276.1	1,233.4	103
Net assets from reinsurance contracts	0.1	7.9	1

Segment: Health

Impact of announced termination of supplemental health insurance as part of reform of Slovenian healthcare system. Negative effects of price limitation of supplemental health insurance until 2023 YE reflected in immediate recognition of loss from supplemental health contracts. As a result, insurance service result of Health in H1 2023 €–29.3 M.

	H1 2023	H1 2022	Index
Total business volume	105.0	102.2	103
Total revenue	104.3	102.1	102
Insurance contract revenue	104.2	102.1	102
- premium allocation approach (PAA)	103.1	101.0	102
- general model (BBA)	1.1	1.1	102
Insurance service expenses	134.0	102.5	131
- premium allocation approach (PAA)	146.9	101.4	145
- general model (BBA)	-12.9	1.0
Result from reinsurance contracts	0.5	-0.2	-308
Insurance contract result	-29.3	-0.6
Financial result from insurance contracts	-0.1	0.0
Investment result	-0.3	0.0
Operating expenses	11.5	9.6	119
Profit before tax	-30.9	-1.7
Other comprehensive income	1.0	-5.1
Combined ratio	129.5%	101.7%	+ 27,8 p.p
CSM of new contracts/CSM	10.6%	16.3%	- 5,7 p.p
Expenses to insurance revenue ratio	11.0%	9.4%	+ 1,6 p.p
	30 Jun 2023	31 Dec 2022	Index
Contractual service margin (CSM)	0.1	0.1	105
Risk adjustment (RA)	4.0	3.7	106
Net liabilities from insurance contracts	54.0	43.6	124
Net assets from reinsurance contracts	1.2	0.6	185

Segment: Asset Management

Portfolio structure (in €M)

Insurance portfolios, Unit-linked portfolios and Assets from financial contracts

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Instruments (in €M)			Index
	30 Jun 2023	31 Dec 2022	2023/2022
Investment property	68.0	68.3	99
Investments in associates	39.2	37.8	104
Shares and other variable-income securities	185.2	199.8	93
Debt and other fixed-income securities	1,790.6	1,801.7	99
Loans given	6.9	6.6	105
Bank deposits	78.6	79.5	99
Other financial instruments	1.6	1.6	103
Total (1)	2,170.1	2,195.4	99
Unit-linked life insurance contract investments (2)	520.1	469.5	111
Financial investments from financial contracts (3)	619.0	589.0	105
Total (1+2+3)	3,309.2	3,253.9	102

Asset Allocation

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

High-Quality Investment Portfolio Investment Result

¹Assets from unit-linked products and financial contracts excluded

Segment: Asset Management

• H1 2023 investment result: € 53.8 M (in H1 2022: € –72.6 M).
• Taking into account financial result from insurance contracts (€ –46.6 M) and change in shortfall provisions for guarantees (€ 4.2 M; in H1 2022 €– 11.5 M), the impact of investment result on profit was € 11.5 M (in H1 2022 €–11.2 M).
• Annualised return on financial instruments (excluding UL): 1.6% (in H1 2022 –0.1%).

2023 Profit Guidance

2023 Profit Guidance

As at H1 2023: We estimate that due to two external factors, i.e. changes to Slovenian healthcare system and CAT claims, and assuming normal claims development until the end of 2023, our profit this year will be around 80% lower than planned (initially plan of EUR 95 - 110 M).

Explanation of external factors that influence the realization of 2023 plan:

• Loss in Health: H1 2023 result allready negatively affected by Health segment price regulation in Slovenia, resulting in segment loss of EUR 30.9 M.
• Nat CAT impacts: CAT losses due to hailstorms and flood in Q3 are at record high. We believe that this year's CAT claims will total between EUR 150 and 200 M. Their impact on Group's profit will significantly exceed the long-term average and, according to current estimates, will amount to between EUR 40 and 50 M.

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Appendix

Insurance Markets

Dividend Policy

Leading Insurance/Financial Group in Adria Region

Slovenia (H1 2023)

Adria Region* (2022)

Triglav´s market share in Slovenia (H1 2023; y-o-y):

• 47.2% in Non-life (+0.5 pp y-o-y)
• 32.2% in Life & Pensions (-0.1 pp y-o-y)
• 30.3% in Health (0.0 pp y-o-y)

Market Position in Adria Region (as at H1 2023)

SERBIA

NORTH MACEDONIA

SLOVENIA MONTENEGRO CROATIA BOSNIA & HERZEGOVINA 40.2% Market Share (+0.7 pp y-o-y) 1st rank 5.4% Market Share (-0.2 pp y-o-y) 8th rank 36.6% Market Share (-3.3 pp y-o-y) 1st rank

9.1% Market Share

(-0.5 pp y-o-y)

8.1% 4th rank Market Share (Q1 2023) 5th rank

13.4%

Market Share

(-2.5 pp y-o-y)

3rd rank

ADRIA REGION (2022)

21.7% (+0.1 pp y-o-y)

1 st rank

Triglav Group Operations by Markets

Total Business Volume by Markets (in €M)

Combined Ratio NL & Health by Markets

Dividend Policy

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

Dividend Policy:

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.

Three objectives are followed in balanced manner: to ensure prudent capital management of Triglav Group and its financial stability, to reinvest net profit in implementation of strategy of growth and development of Triglav Group and to pay out attractive dividends to shareholders.

0

0,5

1

1,5

2

2,5

3

3,5

4

In 2020: Regulator's call upon insurance companies in Slovenia to suspend payout of dividends. In 2021: Triglav met regulator's requirements for dividend payment related to uncertainties in markets due to pandemic. In 2022: Several aspects and circumstances of recent years also taken into account.

Contact:

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